E1714 V15 Public Disclosure Authorized

Environmental Impact Assessment Summary Report For The Third Medium Cities Infrastructure Project Public Disclosure Authorized Public Disclosure Authorized

Liaoning Academy of Environmental Sciences Feb, 2008 Public Disclosure Authorized Table of Contents

1. General Introduction...... 3 1.1 Project Background ...... 6 1.2 Assessment Basis...... 8 1.3 Domestic Requirements for Environmental Assessment...... 4 1.4 Requirements of Environmental Impact Assessment of World Bank...... 7 2. Project Summary ...... 8 3 Environment Quality Situation...... 13 3.1 Heating System Situations in Project Area...... 13 3.2 Natural Environment...... 16 3.3 District Atmospheric Pollution and Environment Sensitive Receptors ...... 21 3.4 Incidence of Respiratory System Diseases ...... 26 3.5 Acoustic Environmental Quality and Sensitive Receptors ...... 26 3.6 Water Environment Quality ...... 29 3.7 Solid Waste Management ...... 29 3.8 Culture Heritage...... 30 4. Environmental Impact Analysis...... 31 4.1 Analysis of Positive environmental impact...... 31 4.2 The analysis of adverse environmental impact during construction...... 38 4.3 Analysis of Adverse Impact upon the Environment During the Operation ...... 42 5 Comparison of Alternatives ...... 59 6. Environmental Management Plan...... 62 6.1 Environmental Mitigation Measures and Monitoring Plan...... 62 6.2 Monitoring Institutional Arrangement...... 98 7 Strengthening the Environmental Protection Management Organization...... 101 8 Environmental Management Plan Investment...... 108 9 Public Consultation and Information Disclosure...... 109 9.1 Public Consultation...... 109 9.2 Information Disclosure ...... 113 10 Conclusion...... 117 10.1 Need of the Project ...... 117 10.2 Key Environmental Issues ...... 117 10. 3 Positive Environmental Impacts...... 118 10.4 General Conclusion ...... Error! Bookmark not defined. 1. General Introduction To strengthen the infrastructure construction, improve the heating service quality, solve the regional environmental pollution problem and increase people’s living standard, Liaoning Provincial Government is planning to enhance the infrastructure construction under the Third Liaoning Medium Cities Infrastructure Project (LMC3) to be partially financed by the World Bank. This project has been included in the Chinese Government program for utilizing the loan from World Bank in 2006. The project includes construction of district heating infrastructure works in 6 cities such as , , , , and . Totally included are 11 sub-projects after the primary screening and identification. The total investment of this project is about 2,79945 billion RMB Yuan, equivalent to USD 373,26million, of which187 million US dollars will be from the World Bank, and the rest will be covered by the local governments . Please refer to Table 1-1 for the description of the sub-projects Table 1-1 Description of LMC3 Contents Investment Cities Project name Project description (USD 10,000) 1. Heating area 3.197 million m2 2. Building size of the heat source plant: Central Heating Project 3×58MW hot water boilers Ansha in the North of Yongan 3. New construction of 19.63km of trunk 2715 n Road Tiedong Haicheng pipeline network and 75.25km of City second-level pipeline network, 4. New construction or upgrading of 26 heat exchange stations. Heating Network 1. Heating area 7.07 million m2 Construction of Heating 2. New construction of 30km of trunk Fushun Unit Expansion for pipeline network. 2762 Fushun Electric 3. New construction or upgrading of 63 Generation Plant new heat exchange stations. 1. Heating area 1.314 million m2 2. Building size of the heat source plant: Central Heating Project 3×29MW hot water boilers Benxi in Nanfen District, Benxi 3. New construction of 17.37 km of trunk 1421 City pipeline network. 4. New construction or upgrading of 13 heat exchange stations 1. Heating area 4.98 million m2 2. Heat Supply Extension and Upgrading Projects of Benxi Iron & Steel Electric Generation Plant (construction of stage- one pump station, a backwater booster pump station, new construction or Central Heating Project upgrading of 12.652km of pipeline) for Benxi Iron & Steel 3. Rehabilitation Project of Coking Heat 3695 Thermal Development Network (new construction or Company rehabilitation of 14.752km of pipeline) 4. Waste Heat Using Project of Benxi Iron & Steel Blast Furnace 5#/and 6# ( new construction of 1slag-flushing water treatment plant and a pump station, and new construction or rehabilitation of 14.269km of pipeline) 1. Heating area7.1339 million m2 2. Three heat source plants: Caitun Heat Source Plant, building size 2˜58MW circulating fluidized bed boilers; Xihu Heat source Plant, building size Phase Central Heating 3˜58MW hot water boilers; Wolong 6613 project in Benxi City Heat Source Plant, building size 2˜29MW hot water boilers 3. New construction of 34.686km of trunk pipeline network 4. New construction of 45 heat exchange stations 1. Heating area 4.943 million m2 2. Three heat source plant: Caitun Heat Source Plant 2×64 MW circulating fluidized bed, Xihu Heat Source Plant Central Heating Project hMW water boilerWolong Heat Yingko in District in h 3182 u Source Plant MW hot water Yingkou City boiler. 3. New construction of 33.56 km of trunk pipeline network. 4. New construction of 45 heat exchange stations ) 1. Heating area 9.5962 million m2 2. New construction of 98.2km of trunk Huaneng Central Heating pipeline network Project Phase I in North 3. Construction of 83 heat exchange 5854 Part of Yingkou stations ( continue use of 40 existing

station, rehabilitation of 20, retrofitting of 20, construction of 3) 1. Heating area 1042.38 m2 Central Heating Network 2. New construction of 84.586km of trunk Project in Yingkou pipeline network and of 70 km Economic Development secondary pipeline network 5567 Zone 3. New construction or rehabilitation of 77 heat exchange stations and a relay pump station. 1. Overhauling and new construction of the gas storage tanks in the gas source plant(overhauling of 2 wet storage tanks, new construction of a dry storage tanks) Rehabilitation and 2. Construction of intelligent gas Expansion Project for management system 1105 Gas Facilities of Yingkou 3. Upgrading of the pipeline network City system (upgrading of 10 km gas supply pipeline, and about 50km medium or low-pressure pipeline, construction of 14km medium pressure pipelines) 1. Heating area 3.1365 million m2 2. Building size of the heat source plant: 3×58MW hot water boilers Liao Central Heating Project in 3. 37.56km of newly built trunk pipeline network Gongchangling District in 2724 yang 4. New construction of 16 heat exchange stations Liaoyang City 5. New construction of a relay heat exchange stations 6. New construction of a relay pump station

1. Heating area of 1.4435 million m2 2. Building size of the heat source plant: Central Heating Project Huluda 3×29MW hot water boilers in Yangjiazhangzi 1776 o 3. New construction of 12.77km of trunk pipeline Mining Area network 4. New construction or upgrading of 13 heat exchange stations Total: 37326

The primacy chapters to be discussed in this summary report are as following:  Project Background The relevant policies issued by Liaoning province and the present situations of supply of heat and gas in the central cities of Liaoning province are presented in this chapter. Base of Assessment The laws, codes, technical guidelines and assessment standards to be followed in this environmental assessment are introduced in this chapter. Project Summary The summaries of the 11 sub-projects of the LMC3 are introduced here. Present Situations of Environmental Quality Present situations of atmospheric pollution and environment-sensitive targets Quality of acoustic environment and present situations of sensitive receptors Present situations of the quality of water environment Management of solid wastes Cultural property Environmental impact analysis Analysis of positive environmental impact Analysis of adverse environmental impact during construction period Analysis of adverse environmental impact during operating period Comparison of Alternatives Environmental management plan Environmental impact mitigation measures Environmental monitoring plan Arrangement of environmental monitoring institutions Strengthening of environmental management institutions Investment of environmental management plan Public consultation and information disclosure Conclusion for the summary This summery is provided to the World Bank, National Development and Reform Committee of PRC, Liaoning Provincial Government, Development and Reform Committee of Liaoning Province, Environmental Protection Bureau of Liaoning Province, Development and Reform Committees and Environmental Protection Bureaus of the project cities, the construction units of the projects, and the public affected.

1.1 Project Background

1.1.1 Relevant policies of Liaoning Province

Liaoning Provincial Government has been supportive of the application for the World Bank loan which will be used for funding the sub-projects. A coordination group for the implementation of LMC3 to use the World Bank loan has been organized by the General Office of Liaoning Provincial People’s Government, which is primarily in charge of examining and determining the master plan, organizing and coordinating the implementation of initiatives to address key problems encountered in the development of policies, and institutions. The group consists of representatives from Liaoning Provincial Government, Financial Department of Liaoning Province, Liaoning Provincial Environmental Protection Bureau, Construction Department of Liaoning Province, Liaoning Provincial Price Bureau, Development and Reform Commission of Liaoning Province, Price Control Administration of Liaoning Province, Department of Audit of Liaoning Province, the Land and Resources Department of Liaoning Province. The Office of Utilizing the Foreign Capital and Urban Construction is in charge of the daily management under the leadership of the coordination group. Table 1-2 Issues concerning heat and gas supply in the various midland cities Citie Projects Name of Project District or local heating situation s Anshan Central Heating Project in the North of 1A Large number of scattered small boiler rooms with small (Hai Yong’an Road Tiedong District Haicheng capacity, low heating efficiency, serious energy loss and cheng) City environmental pollution, excessive working loads for operators. Heating network Construction of Heating 2Most of the boiler are running under overload without Fushun Unit Expansion for Fushun Electric meeting heating supply requirements. The number of houses Generation Plant with an indoor temperature ranging from 10 to 14 within the Central Heating Project in Nanfen District service area accounts for 30% of the total. Benxi City 3Too simple smoke and dust removal equipment, absent of Central Heating Project for Benxi Iron & desulphurization devices, severe environmental pollution; piping Benxi Current Steal Thermal Development Company network out of repair, water loss rate up to 4%8%; the situation Phase Central Heating Project of Benxi pipelines are elevated over the urban districts in some cities, of heat City which cause passive impact on the landscape.. supply Liao Central Heating Project in Gongchangling 4the service areas are not reasonably planned, leading to yang District Liaoyang City overlapping of the service area to be serviced by different plants. Central Heating Project in Dashiqiao District  Yingkou City Numerous of small heating enterprises with poor Ying Central Heating Network Project in Yingkou management and service. kou Economic Development Zone Huaneng Central Heating Project in North Part of Yingkou Hulu Central Heating Project in Yangjiazhangzi dao Mining Area 1Natural gas pipelines are not well repaired and maintained for the past 30 years. Particularly after the impressed current cathodic protection system for the pipeline were removed in 1990’, the degradation of the pipelines has be enhanced, which leads to a serious leakage of the gas. In some are, the pipeline can merely transmit the gas under low pressure, which consequently neither meet the requirement of gas transfusion nor reduce the operational cost. 2 There are two wet gas storage tank with the capacity of 20,000 m3 and 50,000 m3 respectively, which were put in use in 1989 and 1995 without any overhaul in the gas source plant. 3 The medium pressure pipeline in Yingkou city has been Current operating for over 10 years, and the mechanical flexible joints situation Ying Rehabilitation and Expansion Project for Gas on some sections have get loose with slight leakage. The of gas kou Facilities of Yingkou City consequence would be disastrous if the gas spreads to the supply building or the sewers. In addition, with the constant expansion of urban area, occupation of the buried pipeline by other structures and buried depth changes can be found everywhere. The valve well on the pipeline, and most of the condense cylinders are damaged to various degree. 4 Besides, Yingkou city is located in Liaohe estuary with low-lying terrain, high acidity and alkalinity and serious chemical and electro-chemical corrosion in some parts. With too limited corrosion proof method, and shortage of electro- chemical countermeasures, auxiliary facilities such as the condense cylinders are being damaged at a rather fast speed, resulting in the increased management cost and safety risks.

1.1.2 Heating and Gas Supply Situation and Problems in Central Cities of Liaoning Province

Cities applying for the loan from the World Bank are Anshan, Fushun, Benxi, Liaoyang, Yingkou and Huludao. At present, problems such as plenty of small boiler houses, poor heating quality and serious environmental pollution, aged gas supply systems without repair exist in all cities. Please refer to the environmental management plans of all sub-projects for details.

1.1.3 EA Category

According to the World Bank’s safeguard policy, Environmental Assessment OP4.01, this project has been classified into Category B, as it has short construction period, mature and reliable technique, controllable pollutants discharge and the confined scale of environmental impact. Notice of the General Office of the SDRC of Certain Issues Regarding Handling Confirmation for Debt from International Financial Organizations and Foreign Governments In accordance with the Notification on Strengthening the Supervision of Environmental Impact Assessment of the Projects Funded by Loans from International Financial Institutions (No. 324) [1993] promulgated by State Environmental Protection Administration, State Planning Commission, Ministry of Finance and The People’s Bank of in June 1993, the adverse environmental impact from this project is less than that from category A project, and can only act on the work site, which can be reversed in most cases. With the effective relief measures on environmental impact, waste gas pollutants emitted from this project have conformed to the regulations of Emission Standard for Air Pollutants from Boilers GB13271-2001 and Integrated Emission Standard of Air Pollutants GB16297-1996 ; waste water pollutants discharge have conformed to the Integrated wastewater discharge standard GB8978-1996 and Liaoning Local Standard on Discharge of Wastewater and Exhaust Gases DB21-60-89 ; Solid wastes have been utilized and disposed in a multipurpose and orderly way, forbidden to discharge. By doing this, both the degree and scope of the impact from this project will be restrictive. 1.2 Assessment Basis 1.2.1 Law and Regulation Bases

1) State environmental laws & regulations including Environmental Protection Laws of PRC, Water Pollution Prevention and Control Law , Noise Pollution Prevention and Control Law, Solid Waste Pollution Prevention and Control Law The Assessment of Environmental Impact In The People’s Republic and Cleaner Production Promotion Law of the People’s Republic of China. 2) Regulations on the Administration of Construction Project Environmental Protection 3) Decree No. 253 of the State Council of the People's Republic of China, November 29, 1998 4) Classified Directory for Environmental Management of Construction Projects ( File No. 14 of State Environmental Protection Administration, October, 2002 5) Notice on the Issuance of “Suggestions on Strengthening the Water Conservation for Industries” (No. 1015 of State Economic & Trade Resources, 2000) by State Economic & Trade Commission etc. 6) Notification on Strengthening the Supervision of Environmental Impact Assessment of the Projects Funded by Loans from International Financial Institutions (No. 324) [1993] of State Environmental Protection Administration 7) The Official Reply of State Council to the Tenth-Five-Year Plan of Acid Rain and Sulfur Dioxide Pollution Control in Two Control Zones (Letter No. 84 [2002]) by State Council, in Sep. 2002 8) State Department on the issuance of a comprehensive energy-saving reduction program of work ( No. 15 [2007] ) by State Council 9) National Catalogue of Hazard Wastes (No.089 [1998]) State Environmental Protection Administration, National Economy and Trade Commission, Ministry of Foreign Trade and Economic, Ministry of Public Security, in January, 1998 10) The Provisional Measure of Public Participating in Environmental Assessment (No. 28, [2006]) promulgated by State Environmental Protection Administration in February 14, 2006 11) The Provisional Regulation for Pollutants Discharge Total Control of Liaoning Construction Project Environment Management No.166 [1997] by Liaoning Provincial Environmental Protection Bureau 12) Notice on the Issuance of Integrated Control Plan for the Air Environment in Liaoning Province ( No. 29 [1999] promulgated by Liaoning Provincial People’s Government on September 17, 1999 13) Notice on the Issuance of “Provisional Measures for Supervision and Management of Construction Project in Liaoning Province” No.24 [2007] promulgated by Liaoning Environmental Protection Bureau

1.2.2 Technical Basis

1) Technical Guidelines for Environmental Impact Assessment HJ/T2.12.3-93 2) P.R.C Standards for Environmental Protection Industry 3) Technical guidelines for environmental impact assessment---Acoustic Environment HJ/T2.41995 P.R.C Standards for Environmental Protection Industry 4) Technical guidelines for environmental impact assessment---Non-Polluted Ecological Impact HJ/T19-1997P.R.C Standards for Environmental Protection Industry 1.2.3 World Bank’s Safeguard Policies

According to the relevant provisions of World Bank, public interest shall be taken in full account, which is exactly the final objective for assessment institutions to conduct the environmental impact assessment; therefore, the assessment institutions have performed an item-by-item check and screening on the safeguard policies of the World Bank, the results are as shown in Table 1-3.. Table 1-3 Screening List of the Safeguard Policies  Serial Checked items Outcome Environmental 1 Environmental impact assessment has been conducted Assessment All projects will be conducted in city proper, no natural habitats 2 Natural habitats involved Involuntary 3 Resettlement Few resettlement occurred during projects construction 4 Indigenous Peoples No Aboriginals involved in projects construction Physical Cultural After survey by Cultural Relics Bureau, it is confirmed that no cultural 5 Resources heritage found in these projects 6 Disputed Areas No disputation involved in all international regions 7 Safety of Dams No large dams within the scope of assessment International 8 Without international waters waterways 9 Forests No natural or man-made forest within the assessment scope 10 Pest Management No pesticide or herbicide involved in project construction or operation

1.2.4 Project Documentations

1) Feasibility Study Report on Central Heating Project in the North of Yong’an Road Tiedong Haicheng City, by Urban Planning and Design Institute of Liaoning Province in December, 2007 2) Feasibility Study Report on Central Heating Project in Gongchangling District of Liaoyang City by Urban Planning and Design Institute of Liaoning Province in December, 2007 3) Feasibility Study Report on Central Heating Project in Dashiqiao District of Yingkou City by Urban Planning and Design Institute of Liaoning Province in December, 2007 4) Feasibility Study Report on Central Heating Project in Nanfen District of Benxi City, by Urban Planning and Design Institute of Liaoning Province in December, 2007 5) Feasibility Study Report on Central Heating Project in Yangjiazhangzi Mining Area 6) by Urban Planning and Design Institute of Liaoning Province in December, 2007 7) Feasibility Study Report on Heating Network Construction of Thermal Unit Expansion Project for Fushun Electric Generation Plant by Fushun International Engineering Consulting Center in May, 2006 8) Feasibility Study Report on Centralized Heating Project for Benxi Iron & Steel Heating Development Company by Urban Planning and Design Institute of Liaoning Province in May, 2007 9) Feasibility Study Report on Central Heating Network Project in Yingkou Economic Development Zone by Urban Planning and Design Institute of Liaoning Province in July, 2007 10) Feasibility Study Report on Huaneng Central Heating Project Phase I in North Part of Yingkou by Urban Planning and Design Institute of Liaoning Province in July, 2007 11) Feasibility Study Report on Rehabilitation and Expansion Project for Gas Facilities of Yingkou City by Gas & Heat Research and Design Institute or Construction Ministry in July 2007 12) Feasibility Study Report on Phase Central Heating project of Benxi City, Urban Planning Design Institute of Liaoning Province in December, 2007 1.2.5 Applicable Standard

Assessment standard for all sub-projects are as shown in Table 1-4.

Table 1-4 Applicable Standards for the sub-projects Standards for environmental quality Pollutants discharge standards Cities Name of Project Acoustic Noise at factory Surface water Ambient air environmental Exhaust emission Waster water discharge boundary Construction noise Solid wastes GB3838-2002 GB3095-1996 GB3096-93 GB12348-90 An Central Heating Shan Project in the Follow ( Hai North of Yong’an Wudao River Noise limits for Pollution Control Grade II Classification II *- Classification II Cheng Road Tiedong Classification IV Construction Site Limit for Solid ) District Haicheng Waste gas pollutants Waste in Liaoning" City from boilers should (DB21-777-94) and Central Heating follow standard in Standard for Project in second class district and Water feeding standards pollution control on Liao Tang River Gongchangling Grade II Classification II time period II of for Gongchangling Classification II the storage and yang Classification III District Liaoyang Emission standard of air Sewage Plantà disposal site for City pollutants for coal-- general industrial Central Heating burning oil-burning gas- solid Hu Project in Baisha River fired boilerGB13271- wastes GB18599- Grade II Classification II *- Classification II Ludao Yangjiazhangzi Classification III 2001 2001 Mining Area Central Heating Project in Classification I Grade II GJ3082-1999 Classification II Dashiqiao District or III Yingkou City Central Heating Network Project in Yingkou Grade II Classification II GJ3082-1999 Classification II Economic Development Ying Zone Laobian River kou Huaneng Central Classification V Heating Project in Grade II Classification II GJ3082-1999 Classification II North Part of Yingkou Rehabilitation and Expansion Project for Gas Grade II Classification II GJ3082-1999 Classification II Facilities of Yingkou City Heating network Construction of Hun River Fu Heating Unit Classification I Grade II *- Classification II shun Expansion for or III Classification V Fushun Electric Generation Plant

Central Heating Follow the same Xi River Project in Nanfen standards as that for Grade II Classification II '% Classification II District Benxi Haicheng projects Classification City

Benxi Central Heating Project for Benxi Iron & Steal *- Classification II Thermal Taizi River Development Grade II Classification II Company Classification Follow the same Phase Benxi standards as that for GB8978 1996 Classification II Central heating Haicheng projects project

The following provides the details in the applicable standards. 1 Environmental Quality Standard zAmbient air quality Ambient air quality shall adopt Ambient Air Quality Standard GB3095-1996Grade II, refer to Table 1-5 for details. Table 1-5 ambient air quality standards Concentration limit for pollutants mg/m3 No. Project Remarks Hourly Daily Annual average average average 1 TSP - 0.30 0.20

2 SO2 0.50 0.15 0.06 3 NO 0.24 0.12 0.08 According to document 2 No. 1[2000] of UNCED 4 PM10 - 0.15 0.10 zWater environment Environmental quality standards for surface waterGB3838-2002, refer to table 1-6 for details.  Table1-6 Surface Water Standard Ammonia Category pH value COD Petroleum Nitrogen Grade III 20 1.0 0.05 Grade III 69 30 1.5 0.5 Grade V 40 2.0 1.0 zEnvironmental noise standard Standard of Environmental Noise of Urban Area GB3096-93, refer to table 1-7 for detailed value.

Table1-7 Standard value of Classification urban environmental noise Equivalent sound level LAeq: dB Classificatio Applicable areas Daytime Nighttime n 0 Recuperation district, villa and hotels 50 40 1 Residential, cultural & educational district 55 45 Mixed area of resident, commerce & 2 60 50 industry 3 Industrial area 65 55 4 Both sides of the trunk roads 70 55  2 Emission Standards zWaste gas emission standard Waste gas pollutants from boilers should follow standard in Classificationarea and time period II of Emission standard of air pollutants for coal--burning oil-burning gas-fired boilersGB13271-2001 ; Coal yard, coal transporting system and other uncontrolled emission of dust should follow Integrated emission standard of air pollutants Grade IIGB16297-1996, refer to table 1-8 for details. Table 1-8  Waste Gas Emission Standards  Emission concentration Implement Standard Pollutant Remarks allowedmg/m3

SO2 1200 Emission standard of air Time period I pollutants for coal--burning TSP 250 oil-burning gas-fired boilers SO2 900 GB13271-2001 Time period II TSP 200 Uncontrolled:1. 120 Integrated emission standard of air 0mg/m3 pollutants Dust Grade II GB16297-1996 Maximal emission speed 15m allowed3.5kg/h Stack zWastewater discharge standard According to the difference in locations where the various sub-projects will be constructed, the wastewater from this project shall be discharged after Discharge standard for municipal wastewaterGJ3082-1999,Water Access standard for Gongchangling Sewage Plant,Standard for Wastewater and Waste Gas in LiaoningDB21-60- 89andIntegrated Wastewater Discharge StandardGB89781996. The standard for wastewater discharge is given in Table 1-9 through Table 1-12 below.  Table 1-9 Discharge standards for municipal wastewater Implement Maximal concentration Item Unit Standard allowed pH value - 69 CODcr mg/L 150500

BOD5 mg/L 100300 GJ3082-1999 SS mg/L 150400 Mineral oil mg/L 20 Nitrogen, mg/L 2535 ammonia Notes: The value in the bracket only applicable to the cities with the urban wastewater treatment plant and sewage system. Table 1-10 Water Quality Assessment standards for Gongchangling Sewage Plant Unit PJ/exclusive of pH)

Item pH CODCr BOD5 SS NH3-N Total P Water access standard for Gongchangling Sewage Plant 8 350 150 350 30 1

Table 1-11 Wastewater discharge standard Unit: mg/L ((exclusive of pH) Newly built, capacity Executive Item expansion and rehabilitation Present project Standard and reconstructed projects pH value 69 COD 50 100 DB21-60-89 SS 70 100 Grade I Petroleum 3 5 Nitrogen, 5 15 ammonia pH value 69 COD 100 100 SS 100 150 DB21-60-89 Petroleum 8 10 Grade II Ammonia

nit Ammonia 15 25 nitrogen

Table 12 Integral wastewater discharge standard Unit: mg/L (exclusive of pH)

Item pH CODCr SS NH3-N Integral Wastewater Discharge 6-9 500 400 25 Standard GradH zNoise Noise at plant boundary shall follow the grade II of Standard of Noise at Boundary of Industrial Enterprises GB12348-90, for fuller information please refer to Table 1-13 and the construction noise shall follow Noise limits for Construction Site(GB 12523-90 1991-03- 01), refer to Table 14.

Table1-13 Standard of noise at boundary of industrial enterprises Unit: dB (A)

Executive standard Classification Daytime Nighttime 55 45 60 50 GB12348-90 65 55 70 55

Table 1-14 Noise Limit for Construction Site Unit dB (A)

Constructio Noise limits Primary noise sources n stage Daytime Nighttime Earthwork Bulldozers, grabs and loaders 75 55 Piling Various pile drivers 85 Construction forbidden forbidden Concrete mixers, vibrators and electric Structure 70 55 saw Fitting up Cranes and elevators 65 55 zSolid waste Solid waste shall follow Pollution Control Limit for Solid Waste in Liaoning (DB21-777-94) and Standard for pollution control on the storage and disposal site for general industrial solid wastesGB18599-2001.

Ash and slag have not been listed in the hazardous wastes by China’s environment authorities, and the comprehensive utilization of ash and slag at present is not compulsory, however, the use and production of the building materials made of ash and slag will be encouraged by the relevant government departments.

1.3 Domestic Requirements for Environmental Assessment

The contents of environmental assessment of the various sub-projects required in China are as shown in Table 1-15. Table 1-15 Schedules of Assessment Contents and Focus in All Sub-projects Projects Assessment content Assessment focus Form Central Heating Project in the 1Survey the project district and the current situation of pollution source; monitor the This assessment focuses on project North of Yong’an Road environmental quality in regions, assess the current environmental quality and present the situation of analysis, measures for pollution prevention Tiedong District Haicheng pollutants discharge from small boiler houses to be replaced. and control, cleaner production and City 2Analyze the pollution source in the process of heating source plant, conduct quantitative analysis environmental impact, calculating the Central Heating Project in of the pollutants discharge from the boiler operation. Give presentation on the measures for prevention quantity of pollutants discharged pre and Gongchangling District and control pollution of the project and their feasibility. post-implementation of this project, Liaoyang City 3Forecast and assess the impact on air and noise environment, analyze the environmental impact estimating the impact on environmental Central Heating Project in on air, noise and water. quality after this project goes into Report Dashiqiao District Yingkou 4Analyze the environmental impact during project construction, specially analyze the impact on operation, and commenting on the letter City the public during the construction of heat exchange station and pipeline. feasibility and reliability of measures to be 5Analyze the reasonability of factory site. taken. Central Heating Project in 6 Analyze the cleaner production level of the project. Nanfen District Benxi City 7 Analyze the profit and loss of the environmental economy, and pay close attention to role of this project in controlling the local pollutants amount. Central Heating Project in 8 Collect and feedback on advices. Yangjiazhangzi Mining Area Heating network 1Collect and monitor environmental quality in all regions, and assess the current situation of 1 Â Impacts on the public during Construction of Heating Unit environmental quality. construction of heat exchange Expansion for Fushun 2Analyze the environmental impact on surface water, air, ecology and sound during construction station and pipeline network. Electric Generation Plant and operation stage of heat exchange station and pipeline network Central Heating Project for 3Supervise the environmental management in project construction. 2 Â Impacts on the residents around Benxi Iron & Steal Thermal when the heat exchange station is Development Company being operated. Report form Central Heating Network Project in Yingkou Economic Development Zone Huaneng Central Heating Project in North Part of Yingkou 1Collect and monitor environmental quality in all regions, assess the current situation of 1Analysis of the environmental impact environmental quality. and measures for controlling pollution Rehabilitation and Expansion 2Analyze the environmental impact on surface water, air, ecology and sound during construction during construction and operation stage. Report Project for Gas Facilities of and operation stage of gas source plant. and pipeline network. 2Risk assessment of the gas source form Yingkou City 3Supervise the environmental management in construction plant, gas transmission pipeline and control stations, gas storage facilities, distribution system/ installation of the facilities for the end user 1.4 Requirements of Environmental Impact Assessment of World Bank

Requirements of environmental impact assessment of World Bank on all sub-projects: These are Category B projects where the management plans are more likely the only assessment outcomes. Management plans should include general background, design basis, environmental impact analysis, pollutants discharge from the project, mitigation measures, monitoring plans and organizations arrangement, training plan and public participation. In the process of environmental assessment, the loaner and EA consultant consulted with the affected group and non-governmental organization over the environmental or other issues involved in this project taking their advices into consideration. All environmental assessment reports on the sub-projects were disclosed to the concerned group and local governmental organizations. For sake of the severe pollution, information concerned with the environmental assessment reports on these projects have been announced in various media such as (posters, newspapers), at the same time, two-time consultations were conducted with the public. Information regarding the items covered in the report have been announced to the public with whom consultation to be conducted for once.

2. Project Summary

This project comprises 11 sub-projects in 6 cities. (Refer to Fig. 2-1 for their locations) Anshan(1) Central Heating Project in the North of Yong’an Road Tiedong Haicheng City Fushun(1) Heating Network Construction of Heating Unit Expansion Project for Fushun Electric Generation Plant Benxi: (1) Central Heating Project in Nanfen District Benxi City (2) Central Heating Project for Benxi Iron & Steel Works Thermal Development Company (3) Phase Central Heating project of Benxi City Yingkou: (1) Central Heating Project in Dashiqiao District in Yingkou City (2) Huaneng Central Heating Project Phase I in North Part of Yingkou (3)Central Heating Network Project in Yingkou Economic Development Zone (4) Rehabilitation and Expansion Project for Gas Facilities of Yingkou City Liaoyang(1) Central Heating Project in Gongchangling District in Liaoyang City Huludao(1) Central Heating Project in Yangjiazhangzi Diggings Nature of Project: Municipal Infrastructure Construction Project Sponsor: Foreign Capital Project Office of Liaoning Province Development and Reform Commission See Table 2-1 for the basic information of the sub-projects

Table 2-1 Description of the LMC3 Content Investment City cost Type of project Project description 10,000USD 3×58MW Hot water boilers, 19.63km of first-level Central Heating New pipeline network and Project in the construction 75.25km of second -level Anshan North of Yongan 2715 pipeline network Road Tiedong 12 heat exchange stations Haicheng City Rehabilitation 14 heat exchange stations 27.5km of first-level Heating Network New Fushun pipeline network 2762 Construction of construction 18 heat exchange stations Heating Unit Heating Unit Expansion for Rehabilitation 45 heat exchange stations Fushun Electric Generation Plant 3×29MW hot water boilers, Central Heating New 17.37km of first-level Benxi Project in Nanfen construction pipeline network 1421 District, Benxi 8 heat exchange stations City Rehabilitation 5 heat exchange stations Rehabilitation and Expansion Projects of Benxi Iron & Steel Electric Generation Plant ( new construction of a stage-one pump station, a booster pump station, 10.78km of pipeline, Upgrading Project New of Coking Heat construction Network 7.376km pipeline

Blast furnace waste heat heating project of Benxi Iron & Steel Blast Central Heating Furnace a slag-flushing Project for Benxi water plant, a pump station Iron & Steel and a booster pump station, 3695 Thermal 7.134km pipeline Development Heating Supply Company Rehabilitation and Expansion Projects of Benxi Iron & Steel Power Generation Plant: rehabilitation 6.326km pipeline Restructuring Project of Rehabilitation Coking Heat Network: rehabilitation of 7.376km pipeline Blast furnace waste heat heating project of Benxi Iron & Steel Group: rehabilitation 7.135km pipeline

Three heat source plants: the building size of Caitun Heat Source Plant: 2˜58MW circulating fluid bed boilers; the building size of Xihu Heat Source Plant: 3˜58MWhot water boilers; New Phase central Wolong Heat Source construction heating project of Plant2˜29MWHot water 6613 Benxi city boilers New construction of 34.686km first-level pipeline network New construction of 45 heat exchange stations

Rehabilitation None 4×64MW hot water boilers New construction of 33.56 Central Heating New Yingkou Project in km first-level pipeline construction 3094 Dashiqiao District New construction of 43 heat in Yingkou City exchange stations Rehabilitation None New construction of 98.2km New first-level pipeline construction New construction of 3 heat exchange stations Huaneng Central 80 heat exchange stations Heating Project (upgrading of 40 existing Phase I in North 5854 heat exchange stations, Part of Yingkou capacity expansion of 20 Rehabilitation existing heat exchange stations, upgrading of 20 existing boiler houses)

84.586km first-level pipeline network, 70km Central Heating second-level pipeline New Network Project in network construction Yingkou Economic New construction of 48 heat 5567 Development Zone exchange stations and a relay pump station Rehabilitation 29 heat exchange stations

New provision of a new 50,000 construction m3 storage tank rehabilitation of gas transmission facilities rehabilitation and capacity expansion of gas storage Rehabilitation and equipment involving Expansion Project rehabilitation of the existing 1105 for Gas Facilities 20,000 and 50,000 m3 1 capacity storage tanks of Yingkou City Rehabilitation rehabilitation and capacity expansion of gas distribution network including the upgrading of facilities for pressure/flow control, corrosion control, SCADA, and emergency response arrangements 3×58MW hot water boilers 37.56km first-level pipeline Central Heating New network Project in construction 16 heat exchange stations Liaoyang Gongchangling A booster heat exchange 2724 District in Liaoyang station City A relay pump station Rehabilitation None 3×29MW hot water boilers New construction of Central Heating New 12.77km first-level pipeline Project in construction Huludao network 1776 Yangjiazhangzi 9 heat exchange stations Mining Area Rehabilitation 4 heat exchange stations

Total - 37326   

1 The scope for rehabilitation of the existing 20,000 and 50,000 m3 capacity storage tanks and provision of a new 50,000 m3 storage tank has been defined following the integrity and safety assessment of the existing 20,000 and 50,000 m3 storage tanks conducted by Liaoning Academy of Safety Sciences, an entity certified by the National Safety and Security Bureau, which concluded that the tanks could be used safely after the recommended rehabilitation works. The scope and needed investments for a) and c) would be firmed up after the completion of the ongoing feasibility and safety studies.      

3 Existing Environment Quality Situation 3.1 Heating System Situations in Project Area 3.1.1 District Heating Situation

Refer to Table 3-1 for description of the heating systems in all sub-projects.

Table 3-1 Summary of Heating System in Sub-projects. Current Heat supply Area Coal Quality Current Coal Consumptiont/a (10,000 m2) Numbers of Service small Area Coal Contents of Description of Sub- Service boilers to Coal Coal Ash Storage by Type of Storage Project project Area by be replaced consumed consumed by Sulfur Ash method Central Total Coal method Scattered by this by Central Content Content Heatin Total Boilers project Scattered Heating g Boilers

Central Heating Sold to brick Project in the North Open maker for of Yong’an Road 112 77.7 189.7 14 44700 17668 62368 soft coal 0.8 14.0 Storage integrated Tiedong District utilization Haicheng City Central Heating Sold to brick Project in maker for Open Gongchangling 82.25 0 82.25 22 102031.2 0 102031.2 soft coal 0.9 30.9 integrated Storage District Liaoyang utilization City Sold to brick Central Heating maker for Open Construction of Project in Dashiqiao 113.2 233.8 347 64 191480 67826 259306 soft coal 0.89 29.0 integrated Storage boilers, heating District Yingkou City utilization network and heat exchange Sold to brick stations Central Heating maker for Open Project in Nanfen 53.3 0 53.3 7 38577 0 38577 soft coal 0.89 29.04 integrated Storage District utilization

Sold to brick Central Heating maker for Project in Open 46.5 0 46.5 4 16900 0 16900 soft coal 0.6 26.5 integrated Yangjiazhangzi Storage utilization Mining Area

Phase Central Heating Project of 272.9 0 272.9 31 55840 0 55840 soft coal 0.89 28.86 Benxi City

Heating network Construction of Sold to brick Heating Unit Open maker for 0 77 77 66 - - - soft coal 0.8 34 Expansion for Storage integrated Fushun Electric utilization Generation Plant Central Heating Sold to brick Project for Benxi maker for Only heating Open Iron & Steal Thermal 402 405 807 0 130823 235482 366306 soft coal 0.9 30 integrated network and Storage heat exchange Development utilization station are Company Sold to brick included in the Central Heating maker for project, with the Network Project in Open 288.6 473 761 79 130000 137218 267218 soft coal 0.5 37.0 integrated heating source Yingkou Economic Storage utilization relying on other Development Zone projects. Huaneng Central Sold to brick Heating Project in Open maker for 288.6 473 761 30 130000 137218 267218 soft coal 0.5 37.0 North Part of Storage integrated Yingkou utilization Rehabilitation and Expansion Project for ------Gas Facilities of Yingkou City

3.1.2 District Heating Demand

The district heating demands of all sub-projects are described in the following table according to the development plans of heating and power generation in all the project cities

Table 3-2 New Heating Demand of the Sub-project Newly Increased Heating Area in the Heating Name of the Projects Plan Nature Location 10,000 m2 Central Heating Project in the North of Yong’an Road Tiedong 130 Civil Heating North of Yongan Road Tiedong District District Haicheng City Haicheng City Central Heating Project in Gongchangling District Liaoyang 231.4 Civil Heating Gongchangling District in Liaoyang City City Dashiqiao District in Yingkou City Central Heating Project in Dashiqiao District Yingkou City 98.7 Civil Heating

Central Heating Project in Nanfen District 78.1 Civil Heating Nanfen Shantytown Area Yangjiazhangzi Economic Development Central Heating Project in Yangjiazhangzi Mining Area 124.97 Civil Heating Zone

Phase Central Heating Project in Benxi City 440.4 Heating Capacity Expansion in Heating Network Construction 150 Civil Heating Northern part of river in Fushun Program, Fushun Electric Generation Plant Central Heating Project for Benxi Iron & Steal Thermal 324.6 Civil Heating Benxi city area Development Company Central Heating Network Project in Yingkou Economic 235 Civil Heating Southern part of Development Zone Development Zone Huaneng Central Heating Project in North Part in Yingkou 198.6 Civil Heating Northern part of Yingkou city Gas Facilities Rehabilitation and Expansion Project in Yingkou 16,000 households Civil Gas Supply Yingkou city area City

3.2 District Natural Environment

The natural environment in the project cities is described as follows:

Table 3-3 Environmental Baseline in the Project Cities Project City Geographic Locations Terrain and Landform Surface Water Climate and Meteorology Haicheng City falls within the north temperate zone There are many rivers in Haicheng. Hunhe River, and where continental monsoon climate is dominant. The Taizihe River flow across the west of Haicheng, joining climate is characterized with a mild temperature, distinct Haicheng City covers an area of 2728.8 square kilometers. It is in Haicheng City is located between the eastern the Great Liao River at Sancha River, before seasons and abundant rainfalls. The yearly average the south of Anshan City in Liaoning Province. It is situated in the mountainous area and the western Liao River Plain. It discharging into . Hunhe River flows across temperature is 10.4 , with 691.3mm of rainfalls. The Haicheng City middle part of Shenyang- Economic Zone. The urban area is slopes from southeast toward northwest. Haicheng River Haicheng City, with the river section within the city average temperature in January is -10.6 and 24.3 ( Central Heating Project in located in the center of the city. The geographic location is East and Wudao River flow across the city in the south and being 31.60km, helping form the border between the North of Yong’an Road in July, with extreme high temperature being 36.5 and Longitude 122°45´ and North Latitude 40°51´. It is 130 km to the north of the city respectively. Except Yuhuang Haicheng and Taian County. Taizihe River is 34.70km Tiedong District Haicheng extreme low temperature being -33.7 . It has a frostless north of Shenyang, and 30km to the north of Anshan; 50km to the Mountain, Liangjia Mountain, and Shuangshanzi long within Haicheng. After Hunhe River and Taizihe City ) period of average 160 days. The average depth of frozen south of Yingkou, 80km to the south of Yingkou New Harbor and Mountain, most of the city is flat with the average River join Great Liao River, they run for 27.5km in earth is 1.0m. Years of statistics show that average yearly 250 km to the south of Dalian; 170km to the west of ; and elevation of 20-30m. Haicheng. On the opposite bank is Dawa County. The rainfall is 710.9mm, with highest record up to 1079.1mm 180km to the southwest of Harbor.. main rivers crossing the planned area are Haicheng and lowest record down to 455.7mm. The volume of River, Wudao River, Baili River and other smaller rainfall in June to July takes up over 72% of the total seasonal rivers. rainfall within the year. The dominant wind direction is SSW. There are nine rivers in this area, of which Taizi River is Gongchangling Region falls within the north temperate Gongchangling is situated in the middle of Liaoning Province. The the largest one, with the section within the city being zone with continental climate, featured with distinct city lies on the middle reach of Tang River, and very close to the 3.4 km. Tanghe River and Lanhe River are the primary seasons and strong winds during springs. Affected by dam of Tang River Reservoir. The city is 31km to the northeast of branches to Taizihe River, the former being 14.38km in oceanic climate, it is mild and rainy in summer, cool and Benxi City, and 64km to the southwest of Anshan City. It is Gongchangling Area is located in a of mountainous and the city and the latter being 5km in the city. other small humid in autumn and cold and dry in winter. The yearly Liaoyang City adjacent to Dandong to the east and Shenyang, the Capital of hilly region. It slopes from east to west. The ground rivers are all branches to Tanghe River. Tanghe River average temperature is 8.8 , with the highest monthly (Central Heating Project in Province, ton the north. It can reach Dalian and Yingkou to the level ranges within 50-600m. Flowing through this area runs across the entire area, with fairly good quality average being 24.7 (in July), with absolute high Gongchangling District south and borders on Anshan and Liao River Oil Field to the west. are mainly Tanghe River and Taizihe River. Changlinghe water. There are two reservoirs at provincial level, one temperature being 38 , and lowest monthly temperature Liaoyang City) The area is totally 25.78 km long from south to north, and 24.45 River is a seasonal river. Taizi River runs along the north is Shenwo Reservoir located in the northeast of this area km from east to west. The total area is 10.06 km, and the planned boarder of the city. Tanghe River flows across the city on the trunk stream of Taizihe River, with a storage being -11.4 (in January), with absolute low area is 292.07 km2. The urban area as in the plan is 18.2498 km2, of from south to north, forming a piece of open river valley. capacity of 791 million m3; and the other is Tanghe temperature being -37 . The average yearly rainfall is which 1.6362 km2 is on flooding basin of rivers. The constructed Reservoir located in the south of this area on the trunk 754.9mm, and the maximum depth of frozen earth is area is 14.455 km2 with East Longitude 123°26 and North Latitude stream of Tanghe River, with a storage capacity of 730 1.2m. The dominant wind direction around the year is 40°09 . million m3. It enjoys abundant resource of surface south, and dominant wind in winter is southeast. The water. average wind speed in a year is 2.3m/s The city is located in the north temperate zone where warm temperature monsoon climate prevails, affected by both oceanic and continental climate. The climate is It gently slopes from southwest to northwest. The characterized with distinct seasons and moderate rainfall. Dashiqiao Dashiqiao is located within East Longitude 122°0730" to ground level ranges between 12.36 16.09m, a The yearly average temperature is 8.7 , with the highest (Central Heating Project in 122°59" and North Latitude 40°1830" to 40°56. It is situated in differential ground level being 3.73m. monthly average being 24.5 , and the lowest monthly Dashiqiao District Yingkou the middle south part of Liaoning Province. It is bordered by Topographic Features: The plant area is located within - City) to the south, by Haicheng to the north, by Xiuyan to the the front area between diluvium and second fluvial temperature being -9.9 . The average number of days east, and by Yingkou City to the west. A river flows between the terrace. with thunderstorm is 27.5 d/a. Wind Direction: 24% city and . It covers a total area of 1597 km2. northward, 15% southward and 13% southwestward. The average yearly rainfall is 695mm. Wind load is 0.5 KN/m , and snow load is 0.4 KN/m. The depth of frozen earth is 1.0 1.1m. Nanfen is one of districts of Benxi City, about 26km from the urban Nanfen District is located in the temperate continental area of Benxi City. semi-humid monsoon climate zone, featured by distinct Nanfen District is located in the southwest of Benxi, within East seasons and temperature variation. The average yearly Longitude 123°38 48 123°59 24 and North Latitude Nanfen is on a mountainous and hilly region. It slopes The main rivers in Nanfen District are Xihe River and rainfall is 800mm. Wind is most often southwest in Nanfen District 40°02 18 41°14 22 . It is bordered by Caohezhang Town and from east to west, north and south. There are 484 hills Sandaohe River. Xi River is 29km long within the summer and northwest in winter. The maximum wind Lianshanguan Town to the east and south respectively, by that are more than 200 above sea level, with an average district, with a yearly flow at 400 million m3. Small speed is 7-8m per second. With the maximum (Central Heating Project in Liaoyang to the west, and by Pingshan and Minshan Districts of height being 428m. 57% of the mountain areas have a pieces of plains lie along the river. They are flat, and temperature being 35 , and the minimum temperature Nanfen District ) Benxi to the north. It is 28.2km wide from east to west, and 33.1km slope angle over 25°. Flowing through this area is Xihe rich in fertile soil. Besides, there are also Dashihe River, being -34 , the yearly average temperature is 8.2 . long from south to north. The total area is 618.88 km2. Nanfen River, which is the main tributary of Taizi River. This Changshanhe River and Sandaohe River, which are The frostless period a year averages 164 days. The District is close to the middle cities group of Liaoning, only 26km area is mainly low hilly area. good place to develop fresh water fish farming. maximum depth of frozen earth is 1.2m. Heating period from the center of Benxi. It is the southern entrance into Benxi. It is lasts for 152 days. Earthquake intensity is 6 degree, and about 100km away from Shenyang, Anshan and Liaoyang, and the sunshine rate is 54%. 168km from Dandong. Though close to Bohai Sea, Yangjiazhangzi Economic Development Zone is more affected by continental Nuerhe River and Xingchenghe River flow through climate, with frequent movement of high and low air Yangjiazhangzi Development Zone, situated in the mountainous Yangjiazhangzi is located on a river valley, it slopes the area, and discharge into the sea after joining pressure zones and distinct seasons. The statistics from area to the northwest of Huludao City. It is 32km from the urban from northwest to southeast. Mountains exist in the Xiaoling River in Jinzhou. The combined length of the local meteorological observation data has shown that the area of the city, and 30km from City. This area is south and north. It spreads from east to west . This area rivers in this area is 35km. The current flow varies dominant wind direction around the year is SSW at a bordered by Yangjiao Village to the east, west is located between mountains and hillsides. There are Yangjiazhangzi dramatically with seasons. The water depth ranges frequency of 20.5%, and that of winter is NEN. The ( Central Heating Project in and north, and by Huashan Town of Xingcheng City to the south. many mountains and undulating hills. The peak is generally 0.2-0.3m, with the deepest being 1.5m. The yearly average temperature is 9.6 , with extreme high Yangjiazhangzi Mining Its geographic location is within East Longitude 120°30 and North Bijia Mountain in the south, which is 585m above sea rivers are the source for drinking water supply and Area ) Latitude 40°48´. It covers a total area of 9.67 km2. This project will level. The Hongluo Mountain extends into the east part mining production in Yangjiazhangzi. Xingchenghe temperature being 41.5, and extreme low temperature being -25. The average temperature in the hottest be constructed in Lotus Community of Yangjiazhangzi of the Yangjiazhangzi. The Lotus Mountain in the River has a small flow, it discharges into Bohai Sea via month is 24.2 and that in the coldest month is -9. The Development Zone, 120m from Shengshui Temple to the south, a south is famous for its Shengshui Temple. It slopes Xingcheng. There are also such seasonal rivers as average yearly rainfall is 637.6mm, and average relative culture relic preserve at provincial level. from south to north. Baisha River, Heiyugou River and Fuergou River. They help form a delta, and flow from north to south. humidity is 52% in winter and 82% in summer. The yearly average sunshine is 2801 hours. The maximum depth of frozen earth is 112cm. Fushun City is located in temperate zone, where There is a Dahuofang Reservoir (2100 million m3 in temperate and cold humid continental climate prevails. capacity) on the upstream of Hun River. Hunhe river, Fushun City is situated in the mountainous area in east of Liaoning the climate is featured with distinct seasons, hot and flowing through the city, is the longest river in this area. Province, within a scope of East Longitude 123°39’42” to Fushun City is situated on the alluvial plain along the rainy summer, and long cold winter. The yearly average The source of Hun River is in Gunmaling along the ° ° ° valley of Hunhe River. It is surrounded by mountains on temperature is 6.6, with absolute maximum Fushun City 125 28’58” and North Latitude 41 14’10” to 41 28’32”. It is Changbai Mountains in Xingquan Manchu Autonomous three sides. Hunhe River crosses the city area from east temperature being 36.9 (in 1951), and absolute (Heating network adjacent to Tonghua and Liuhe in Jilin Province to the east, 45km County. It flows from east to west, discharges to Sancha to west. The city presents itself as a narrow strip along minimum temperature being-35.2 (in 1987). The period Construction of Heating away from Shenyang, the Capital of Province, to the west, and River via Fushun and Shenyang before joining with both sides of Hunhe River, 30km long from east to west, of frozen earth lasts for 160 days. The average yearly Unit Expansion for Fushun bordered by Benxi to the south and by to the north. Under Taizi River, and then to join Great Liao River before Electric Generation Plant) its municipal jurisdiction, there are one city and three counties, i.e. and 6 8km wide from south to north. The terrain is rainfall is 767.9mm, the maximum record is 1248mm. Refer to Table 3-4 for details of the sensitive points around each sub-project. Refer to Fig 3-1~table3-7 for sensitive targets in the Environment around each sub-project. So far, the provision of buffer zone for boiler rooms is not required in China Table 3-4 Details of Sensitive Points around the Plants of Sub-Projects Environment Sensitive Areas Atmosphere Environment Sensitive Sound Environment Protected City Name of the Projects Areas Areas Distance Distance Name of Sensitive Location of from from Points Sensitive Points Plantskm Plantsm Haicheng City 2.4 Xiai 0.9 Residential area in the south of the Central Heating Project in Sanli 0.8 plant (Haixiu 20 the North of Yong’an Road Haicheng Railway Employee Tiedong District Haicheng Xiaoluobu 2.8 Apartments) City Residential areas around each heat Tianshuigou 0.9 transfer station Ansheng Community 1.5 Residential area to Youji Community 2.5 the north of the 200 plant Tuanshan Community 0.8 Sujia Community 3.5 Sunjiazhai 3.7 Hospital to the Central Heating Project in 100 Liaoyang Gongchangling District Residents in the north north of the plant 0.2 Liaoyang City of the plant Hospital in the north of 0.1 the plant School to the east 150 of the plant School in the east of 0.15 the plant Residential areas around each heat transfer station Yangjiazhangzi 0.8

Xiafuergou 1.9 Heiyugou Village 1.7 Central Heating Project in Huludao Yangjiazhangzi Mining Xiaomajiagou 2.4 Area Residents to the Gaoheshanggou 1.6 80 south of the plant Changmao Village 2.2 Residential areas around each heat Shengshui Temple 0.5 transfer station Yingkou Xinmin Village 2.6 Tieling Village 0.5 Residential area to the west of the Heping Village 1.7 80 Central Heating Project in Wangjia Village 1.6 south building in Dashiqiao District Yingkou heat source plant Dongjiang Village 2.4 City ChengjiaVillage 2.8 Residential areas around each heat transfer station Shengshui Village 3.9 Central Heating Network Project in Yingkou Residential areas around each - Economic Development heat transfer station Zone

Huaneng Central Heating Residential areas around each Project in North Part of - heat transfer station Yingkou

Rehabilitation and Hospital, school, kindergarten, Expansion Project for Gas Sidongfang 0.4 marketplace and residential area Facilities of Yingkou City along the gas pipeline. Heating network Construction of Heating Residential areas around each Fushun - Unit Expansion for Fushun heat transfer station. Electric Generation Plant Nanshan 0.1 Central Heating Project in residential area Shuaiwanzi 30 Nanfen District Village Xujiabuzi 0.3 Central Heating Project for Benxi Iron & Steal Thermal - - Development Company Caixin 2.5 community

Benxi Caiyu Caitun 2.1 Meitie street 0.2 Phase community Central Heating Pingshan street 2.9 Project Nandi street 3.6 of Benxi Xihu district 1.9 Residential area City Xihu to the west of the 0.05 Liutang 2.1 plant Beiwolong 0.7 Residential area Wolong Shabaoling 1.7 to the southwest 0.15 Wolong town 0.7 of the plant

3.3 District Atmospheric Pollution and Environment Sensitive Receptors

These are 11 sub-projects in 6 cities or districts. The data associated with current atmospheric environmental quality are obtained through the following two means: 1Collection of data from routine monitoring 2Short-term monitoring Of the 11 sub-projects, construction of boiler rooms and emission of air pollutants are only related to such projects as Central Heating Project in the North of Yong’an Road Tiedong District Haicheng City, Central Heating Project in Gongchangling District Liaoyang City, Central Heating Project in Yangjiazhangzi Mining Area, Phase Central Heating Project of Benxi City, Central Heating Project in Dashiqiao District Yingkou City and Central Heating Project in Nanfen District. Other projects only involve constructions of piping network to match existing heat sources or heat transfer stations, thus discharge of pollutants or impact on air environment during operation stage will not occur. Therefore, this environment assessment will be focused on collection of data concerning current quality of air environment in Haicheng, Gongchangling in Liaoyang, Dashiqiao in Yingkou, Nanfen District in Benxi and Yangjiazhangzi Diggings. Since there are no routine monitoring point for air environment quality in Dashiqiao in Yingkou, Nanfen District in Benxi and Yangjiazhangzi Diggings, only data from short-term monitoring are available and can be utilized. The air environment quality will not be impacted by operation of such programs as Heating network Construction of Heating Unit Expansion for Fushun Electric Generation Plant, Central Heating Project for Benxi Iron & Steel Thermal Development Company, Central Heating Network Project in Yingkou Economic Development Zone and Huaneng Central Heating Project in North Part of Yingkou and Rehabilitation and Expansion Project for Gas Facilities of Yingkou City. In addition, air quality impact is not likely to occur in the following projects, as Power Supply Capacity Expansion Project for Fushun Power Plant, Centralized Heating Modification Project for Benxi Steal Works Heating Development Company, Centralized Heating Network Project in Yingkou Economic Development Zone, Huaneng Centralized Heating Project in North Part of Yingkou, and Modification and Expansion Project for Gas Facilities of Yingkou City. Therefore, the data for the baseline environment air quality is obtained from the average value provided in the local annual report of environment quality. Table 3-5 Sources of Ambient Air Quality Data of the Sub-project Ambient air quality data Routine from the local Short-term Atmospheric monitoring annual report monitoring for the environmental data of Items of of local ambient air Name of project impact by the atmospheric Short-term environmental quality instead of the construction environment monitoring quality in routine monitoring project collected in 3 resent years( point years one year of the latest 3 years) Central Heating Project in the North of Yong’an Road Tiedong District Haicheng City Central Heating Project in Gongchangling District Liaoyang City Central Heating Project in Dashiqiao District Yingkou City Central Heating Project in Nanfen District Central Heating Project in Yangjiazhangzi Mining Area Phase Central Heating Project of Benxi City Heating network Construction of Heating Capacity Expansion for Fushun Electric Generation Plant Central Heating Project for Benxi Iron & Steal Thermal Development Company Central Heating Network Project in Yingkou Economic Development Zone Huaneng Central Heating Project in North Part of Yingkou Rehabilitation and Capacity Expansion Project for Gas Facilities of Yingkou City

3.3.1 Routine Monitoring Data of the Atmospheric Environmental Quality

Routine Monitoring timing, spot, institution of the Sub-projects are shown in table 3- 6. Routine Monitoring spot , position of the sub-projects and sensitive receptors can be seen on Fig3-8~Fig3-10 Tab.3-6 Routine Monitoring Data of some city City Project The number of Name of Item of Frequency routine Monitoring monitoring of monitoring monitoring institution points Haicheng Central Heating Project Haicheng Monitoring days in the North of Yong’an Environment SO are arranged in 4 2 Road Tiedong District Monitoring PM10 January, April, Haicheng City Station July and October. Dashiqiao Central Heating Project Dashiqiao There are 12 days in Dashiqiao District Environment SO for monitoring 1 2 Yingkou City Monitoring PM10 every month. Station There are 24 Benxi Phase Central Heating Benxi hours for Project of Benxi City Environment SO sampling 4 2 Monitoring PM10 everyday. Station Routine Monitoring data can be seen in tab.3-7. Tab. 3-7 Ambient Air Quality Situation Emission volume of pollutants from small boiler rooms to be demolished Present Air quality (mg/Nm3) Description of by the project(t/a) Programs SO PM Scale 2 10 SO TSP Annual Maximum daily Annual Maximum t/h 2 Average average Average daily average Central Heating Project in the North 0.023 0.11 of Yong’an Road 5(0.7~14) 572.16 433.6 0.019 0.045 0.060. 0.18 Tiedong District 030 15 Haicheng City Central Heating Project in Gongchangling 8(2~30) 1120.1 405.5 - - - - District Liaoyang City Central Heating Project in Dashiqiao 8(2.8~28) 1879.2 1360.5 0.048 0.212 0.355 0.723 District Yingkou City Central Heating Project in Nanfen 14(1~20) 549.4 319.6 - - - - District Central Heating Project in 8(1~20) - - - - Yangjiazhangzi 216.32 96.33 Mining Area Phase Central 0.06 0.022 Heating Project of 6(1~20) 644.5 941.46 (0.030~0. 0.084 (0.01~0.0 0.132 Benxi City 084) 44) Heating network Construction of Heating Unit 8(2~20) 1548.2 5064.2 0.064 0.429 0.128 0.830 Expansion for Fushun Electric Generation Plant Central Heating Project for Benxi Iron & Steal - - - 0.06 - 0.119 - Thermal Development Company Central Heating Network Project in 6(1~20) 1448.3 694.9 - 0.04 0.13 Yingkou Economic Development Zone Huaneng Central Heating Project in 8(2~20) 956.8 2343.0 0.016 - 0.035 - North Part of Yingkou Rehabilitation and Expansion Project - - - 0.016 - 0.035 - for Gas Facilities of Yingkou City Standard - 0.06 0.15 0.10 0.15 Total 2998 8934.98 11659.09 - - - Note: the numbers exceeding the standard are shadowed, which are considered as a result of operation of numerous inefficient boiler rooms. without desulfurization equipment and dust catcher. 3.3.2 Short-Term Monitoring Data

A short-term monitoring of atmospheric environmental quality situation has been performed in Haicheng, Nanfen, Gongchangling, Dashiqiao and Yangjiazhangzi, to collect the air quality data which are not available in the routine air quality monitoring program during the curse of EA,. Refer to Fig 3-11~3-16 and Table 3-8 for monitoring points of each sub-project. Table 3-8 Short-Term Monitoring of Atmospheric Environmental Quality SO (mg/m3) PM (mg/ Number of 2 10 Monitori Monitoring m3) Sub-Project Monitoring ng Items Frequency Points Maximu Maximum Maximum m hourly daily average daily average Central Heating Monitoring shall be Project in the North performed for consecutive PM of Yong’an Road 4 10 5 days; SO shall be 0.074 0.037 0.13 SO 2 Tiedong District 2 monitored for hourly Haicheng City average concentration four Central Heating times a day at 7:00, 10:00, Project in 14:00, and 19:00 PM Gongchangling 6 10 respectively; Duration for 0.246 0.069 0.241 SO District Liaoyang 2 each sampling shall be no City less than 45min; a Central Heating minimum of 18 hours shall Project in Dashiqiao PM be maintained to perform 7 10 0.341 0.164 0.723 District Yingkou SO2 sampling for daily average City of SO2, and a minimum of Central Heating 12 hours shall be PM Project in Nanfen 3 10 maintained to perform 0.189 0.089 0.386 SO District 2 sampling for daily average Central Heating of PM10. Project in PM 1 10 0.029 0.026 0.162 Yangjiazhangzi SO2 Mining Area Phase Central PM Heating Project of 12 10 0.262 0.116 0.159 SO Benxi City 2 Standard - - - 0.50 0.15 0.15

Note: All the monitoring points shall be selected within the atmospheric environmental sensitive areas listed in Table 3-4 in accordance with HJ/T2.12.3-93, “Technical Guidelines for Environmental Impact Assessment”. Shadowed are the numbers that exceed the standard.

3.4 Incidence of Respiratory System Diseases

China is one of the countries that rely on coal as primary energy source, leading to quite serious coal smoke pollution. At present, every city in Liaoning Province suffers from terrible air pollution due to extensive burning of coals. Statistics have shown an increase of respiratory system disease during winter and spring in all the cities, which are resulted from increase of inhaled particles and sulfur dioxide caused by burning of coals in boilers during heating periods.

Inhalation of SO2 will damage the function of respiratory system and aggravate existing respiratory system illness. PM10 also can contaminate lungs of human after being inhaled. Based on the information provided by local hospital which located at Haicheng, Benxi, Dashiqiao, Nanfen, Gongchangling and Yangjiazhangzi, the incidence of respiratory system disease is greater than that in summer. 3.5 Acoustic Environmental Quality and Sensitive Receptors

Noise monitoring has been performed on residential areas around the heat source plant site, boundary and heat exchange station for the five projects of Central Heating Project in the North of Yong’an Road Tiedong District Haicheng City, Central Heating Project in Gongchangling District Liaoyang City, Central Heating Project in Yangjiazhangzi Mining Area, Central Heating Project in Dashiqiao District Yingkou City and Central Heating Project in Nanfen District. Monitoring is performed on residential areas around heat exchange stations only for such three projects that only involves Heating network Construction for Fushun Electric Generation Plant, Central Heating Network Project in Yingkou Economic Development Zone and Huaneng Central Heating Project in North Part of Yingkou The operation of such projects such as Central Heating Project for Benxi Iron & Steal Thermal Development Company and Rehabilitation and Expansion Project for Gas Facilities of Yingkou City will not have impact on acoustic environment, and the data is from the local annual report of environment quality. Refer to table 3-9 for sensitive acoustic environmental areas. The sensitive point monitoring of noise environmental quality situation as follows: zMonitoring Method Monitoring instrument: statistical analyzer of sound level meter to the IEC standard The monitoring is performed in accordance with “Technical Specification of Environment Monitoring”. zStatistical analysis of monitoring results Equivalent sound level Leq is utilized for evaluation, which is calculated with:  N  Leq =  N∑10/1lg10 Li 10/   i=1  Where Leq — Equivalent sound leveldBA Li— Sound level value read within equal time interval , dBA N— Total number of sound level values be read Refer to Table 3-9 for monitoring results.

Monitoring Monitoring Results Location Day Time Night Time Leq Standa Leq Standar frequency rd d CentralT ableHeating 3-9 MonitoringEast plant Results boundary of Acoustic 47.8 Environmental 60 42.0 50 Quality Monitoring is Project in the South plant boundary 49.7 60 41.1 50 performed twice North of Yong’an West plant boundary 54.7 60 92.4 50 a day at 10:00 Road Tiedong on day and LA North plant boundary 50.0 60 40.0 50 District Haicheng 22:00 at night City Residential area to the for 2 days in 48.9 60 40.5 50 south of the plant continuously

Central Heating East plant boundary 49.0 60 35.4 50 Monitoring is Project in South plant boundary 49.9 60 35.7 50 performed twice Gongchangling West plant boundary 50.8 60 35.5 50 a day at 10:00 District Liaoyang North plant boundary 48.1 60 39.6 50 on day and LA City School on the east 52.4 60 45.0 50 22:00 at night Hospital on the north 54.8 60 46.4 50 for 2 days in Residential area on the continuously 51.4 60 39.2 50 northwest Central Heating Monitoring is Project in performed twice Dashiqiao District a day at 10:00 Yingkou City on day and LA heat source plant 48.3 60 41.8 50 22:00 at night for 2 days in continuously

Central Heating East plant boundary 46.1 60 36.4 50 Monitoring is Project in Nanfen South plant boundary 48.9 60 37.5 50 performed twice District West plant boundary 44.6 60 46.5 50 a day at 10:00 LA on day and 22:00 at night North plant boundary 53.4 60 38.1 50 for 2 days in continuously Central Heating East plant boundary 53.5 60 39.6 50 Monitoring is Project in South plant boundary 54.7 60 39.8 50 performed twice Yangjiazhangzi West plant boundary 54.1 60 40.1 50 a day at 10:00 Mining Area on day and LA North plant boundary 54.2 60 40.3 50 22:00 at night Residential area to the for 2 days in 66.8 60 49.9 50 south of the plant continuously

East plant boundary 52.8 60 48.3 50 Monitoring is Cai West plant boundary 52.2 60 49.2 50 performed twice tun South plant boundary 48.9 60 47.2 50 a day at 10:00 North plant boundary 55.0 60 47.6 50 on day and East plant boundary 58.7 60 50.0 50 22:00 at night West plant boundary 55.1 60 42.9 50 for 2 days in Phase Xih continuously Central South plant boundary 55.1 60 47.4 50 u Heating LA North plant boundary 54.4 60 42.9 50 Residential area to the west Project of 48.5 60 42.9 50 Benxi City of the plant East plant boundary 43.3 60 41.1 50 West plant boundary 43.7 60 42.1 50 Wol South plant boundary 43.7 60 41.8 50 ong North plant boundary 44.1 60 42.5 50 Residential area to the west 46.1 60 40.6 50 of the plant Heating network Monitoring is Construction of performed twice 35 monitoring points in Heating Unit Monitoring noise value of each a day at 10:00 total located in residential Expansion for LA point meet the requirement of the on day and area around the heat Fushun Electric standard 22:00 at night transfer station Generation Plant for 2 days in continuously Central Heating Noise value in Benxi City is 56.4 Data is sourced Project for Benxi Db(A) on days, and 47.0dB at from local Iron & Steal nights. The annual average value in LA - annual reports Thermal various functional zones is of environment Development conformed to the standard. quality. Company Central Heating Monitoring is Network Project performed twice in Yingkou 27 monitoring points in a day at 10:00 Monitoring noise value of each Economic total located in residential on day and LA point meet the requirement of the Development area around the heat 22:00 at night standard Zone transfer station for 2 days in continuously

NOTE: shadowed are the numbers exceeding the standard.. 3.6 Water Environment Quality

Refer to table 3-10 for surface water quality in each sub-project. Table 3-10 Surface Water Quality in Each Project Description of Projects Surface Water Quality in Each Project for the data obtained for Xiaowangtun, Dawangtun and Dongjia Bridge Central Heating Project in the Hai section, except pH value, the concentration of CODcr, ammonia and North of Yong’an Road cheng nitrogen has exceeded the limits for Grade IV specified in GB3838- Tiedong District Haicheng City 2002. Central Heating Project in The water quality in the downstream of Tanghe River near the plant is Liao Gongchangling District described as follows: CODcr is 16.2mg/L, SS is 917.2mg/L and the yang Liaoyang City concentration of SS is seriously exceeding the dry farming standard set forth in “standards for irrigation water quality” (GB5084-93). Results have been obtained from the monitoring in Baishahe River near the plant by Huludao Environment Monitoring Station during Jul 21~25, Hulu Central Heating Project in 2007 that CODcr is 12.9mg/L and SS is 15mg/L, conformed to dao Yangjiazhangzi Mining Area “Environment Quality Standard for Surface Water” (GB3838-2002) Grade III and the dry farming standard set forth in “standards for irrigation water quality” (GB5084-93). Central Heating Project in Dashiqiao District Yingkou City

Based on the monitoring data in May of 2005, the water quality of Central Heating Network Laobianhe River in Yingkou City is as follows: CODcr is 26mg/L, Project in Yingkou Economic Ying conformed to “Environment Quality Standard for Surface Water” Development Zone kou (GB3838-2002) Grade V; SS is 62mg/L, conformed to the dry farming Huaneng Central Heating standard set forth in “standards for irrigation water quality” (GB5084- Project in North Part of 93). Yingkou Rehabilitation and Expansion Project for Gas Facilities of Yingkou City Water quality of Hunhe River within Fushun: The annual average of two pollutant indexes of ammonia and nitrogen Heating network Construction and Escherichia coli group showed in Gebu Bridge section from 2005 Fu of Heating Unit Expansion for exceeded the Standard of Grade V by 0.4 time and 14 times respectively. shun Fushun Electric Generation That of other pollutant indexes has all reached Grade V of surface water. Plant Items found out of standard upon the first monitoring include chemical oxygen demand, potassium permanganate index, volatile phenol, total phosphor, and anion surfactant. Central Heating Project in Nanfen District Central Heating Project for The quality of water coming from the stream of Taizi River in Benxi Benxi Benxi Iron & Steal Thermal is inferior to the incoming water, exceeding Environment Quality Development Company Standard for Surface Water” (GB3838-2002) Grade Phase Central Heating Project of Benxi City

3.7 Solid Waste Management

Of these projects, only the four projects of Central Heating Project in the North of Yongan Road Tiedong District Haicheng City, Central Heating Project in Gongchangling District in Liaoyang City, Central Heating Project in Dashiqiao District in Yingkou City, and Central Heating Project in Nanfen District of Benxiwill produce slag requiring disposal. Refer to Table 3-11 for generation, disposal and management of slag produced from existing small boilers. Table 3-11 Slag Disposals of the Scattered Boiler Rooms Slag output of Name of Projects scattered Storage Transportation Outgoing boiler room Central Heating Project in the Sent do brickyard to Piled up in Truck Transportation North of Yongan Road Tiedong 14751 be used as raw open air Non-Enclosure District Haicheng City material Central Heating Project in Truck Sent do brickyard to Piled up in Gongchangling District in 33667 TransportationNon- be used as raw open air Liaoyang City Enclosure material Central Heating Project in Truck Sent do brickyard to Piled up in Dashiqiao District in Yingkou 62808 TransportationNon- be used as raw open air City Enclosure material Truck Sent do brickyard to Central Heating Project in Piled up in 12662 TransportationNon- be used as raw Nanfen District open air Enclosure material Truck Sent do brickyard to Central Heating Project in Piled up in 4554 TransportationNon- be used as raw Yangjiazhangzi Mining Area open air Enclosure material Truck Sent do brickyard to Phase Central Heating Piled up in 17164 TransportationNon- be used as raw Project of Benxi City open air Enclosure material

3.8 Culture Heritage

It is confirmed by cultural bureaus in the project areas that, there are no scenery tourism resorts, forests, and cultural properties at national, provincial or municipal levels to be protected within the area affected by these projects in Haicheng, Dashiqiao, Gongchangling, Fushun, Benxi district, Nanfen District in Benxi, Yingkou district,, and Yingkou Economic Development Zone, with no any preserve of any kind; except for a Holy Water Temple in the Lotus Mountain 200 m to the east of the heating source for the Central Heating Project in Yangjiazhangzi Economic Development Zone, which is a cultural relic protected at provincial level. 4. Environmental Impact Analysis 4.1 Analysis of Positive environmental impact

4.1.1 Ambient air quality improvement

After central heating become available, a large number of small boiler rooms will be closed and no longer be used, so the district air quality of the project cities will be improved to some extent. The numbers of small boiler rooms to be closed are listed in Table 4-1. Table 4-1 List of the Small Boiler Rooms Removal in Each Project Number of Emission volume of the small boiler out of service pulling down Name of project (t/a) small boiler

rooms SO2 TSP central heating works of north side of Yong’an road at east rail road in Haicheng city 14 572.16 433.6 central heating project at the Gongchangling district, Liaoyang City 22 1120.1 405.5 central heating project of Dashiqiao city zone in Yingkou region 64 1879.2 1360.5 central heating project of Nanfen district, Benxi city 7 549.4 319.6 central heating project of economic mining Area, Yangjiazhangzi 4 216.32 96.33 Phase Central Heating Project of Benxi City 31 644.5 941.46 Heating network Construction of Heating Unit Expansion for Fushun Electric Generation Plant 66 1548.2 5064.2 Central Heating Network Project in Yingkou Economic Development Zone 79 1448.3 694.9 Rehabilitation and Expansion Project for Gas Facilities of Yingkou City 0 - - Central Heating Project for Benxi Iron & Steal Thermal Development Company 0 - - Huaneng Central Heating Project in North Part of Yingkou 30 956.8 2343.0 Sum total 317 8934.98 11659.09 The World Bank suggests that the reverse model is used to predict the atmospheric environmental impact as a result of the demolition of the existing boiler rooms, while the conventional Gaussian model is used to forecast the atmospheric environmental impact caused by newly-built boilers.

As there are no regular monitoring stations established at the three areas such as, Gongchangling, Nanfen and Yangjiazhangzi, it will be unable to collect the routine monitoring data of the air quality within the previous three consecutive years, thus it is very difficult to establish and run the reverse model. We can only adopt the conventional model recommended in the Technical Guideline for EIA issued by SEPA to predict the impact on the local air quality as a result of the demolition of the small boiler rooms

The following is the model used for prediction: zReverse Model " Reverse model" is employed to assess the air quality changes generated by retired boilers; the formula is as follows:

PS=Pbackground + P0 ES/E0

The improvement degree % = P0- PS / P0 ×100 Of which: PS —the concentration of particular air pollutant in the area where small boilers have been demolished, mg/m3; Pbackground — the background concentration the particular air pollutant emitted from other pollution sources within the same area, mg/m3; P0— current concentration of the particular air pollutant within the same area, mg/m3; ES—the emission rate after the boilers have been closed down, kg / h; E0—the present emission rate of the particular air pollutant, kg / h, zGaussian Model The normal mode recommended in “Technical Guidelines for Environmental Impact Assessment " (HJ / T2.2-93) is to be used to predict the air pollutants concentration emitted from a point source along the ground-surface axis. -- The dispersion model of point source in windy days -- Assuming the chimney location on ground as the origin, the concentration of the  Q   Y 2  +4   ()2 − Henh 2   ()2 + Henh 2  c =  exp−   ∑ exp. −  exp−+   σσπ   σ 2  σ 2 σ 2  2 U zy   2 y  n −= 4  2 z   2 z  pollutant on the ground point in leeward with the coordinate being (X, Y) will be determined by the following formula: zIn the Formula: Q – Emission volume per unit time, mg / s; Y -- The vertical distance in horizontal direction between the prediction point and the average wind direction axis through the exhaust funnel, m; x – The level horizontal diffusion parameter that is perpendicular to the average wind direction, m; y -- Vertical diffusion parameters, m; U -- The average wind speed at the exit of exhaust funnel, m / s. The ground wind shall be assumed as the representative wind speed at various stabilities; H -- Mixed layer thickness, m; He -- Effective height of exhaust funnel, m. zThe diffusion pattern of the point source when slight wind and static wind Assuming the ground position of the exhaust pipe as the location of the origin, the direction of the prevailing wind is along X axis, the concentration CL of any point on ground (X, Y) with the sampling time less than 24 hours shall be calculated by the formula: = 2Q L YXC ),( 3 .G ()2 ηγπ 2 2 02

In the formula, and G shall be calculated as the following  γ 2  η  222 ++= 01 .Heyx 2   γ 2   02 

− 2 γ 2 2 eG UXU 2 01 { 21 π s 2 Φ⋅⋅+⋅= sse )( } S = ηγ 01 s 1 − 2 s)( =Φ ∫ t 2 dte 2π ∞−

In the above formulas, r01 and r02 are respectively the regression coefficients of horizontal and vertical diffusion parameters, which are to be determined by the recommended ones. zThe maximum ground concentration and the distance between the exhaust funnel shall be calculated with the formula zThe maximum ground concentration and the distance between exhaust funnel shall be calculated according to the following formulas: 2Q ()Xc = mm π 2 ⋅⋅⋅⋅ e PHUe 1 α − 1 α 2r ⋅γ 2 P = 21 1 1  α  1+ 1   α  1  α   α  1− 1  1− 1   α  2 2   α   α  1+ 1   2  ⋅⋅ eH 2  2   α  e  2 

1 − 1 α α  H  2  α  2 2 X =  e  1+⋅ 1  m  γ   α   2   2 

In the formula Cm the maximum ground concentration, mg / s;

X m the maximum ground distance, m; α 1 regression index of horizontal dispersion; α 2 regression index of vertical dispersion

r1 regression index of horizontal dispersion

r2 regression index of vertical dispersion Other parameters are the same as the above. -- The prediction pattern of the daily average concentration By choosing the typical weather conditions and calculating the daily average concentration according to typical day, it is calculated by the following formula:

n = 1 C ∑C i1 n i=1

--The prediction mode of average long-term concentration As for the long-term average concentration affected by the point sources shall be calculated with the formula: = + XC ∑()( ∑ ijk i jk ∑ Lijk fCfC Lijk ) jk k

Q C ,, kji = ⋅ F 2/3 σπ nXU )/()2( Z -- The selection of diffusion parameters The regression coefficient of the diffusion parameters with wind and static wind shall choose the value recommended in “Guideline for Environmental influence Assessment” (HJ / T2.2-93), the sampling time is 30 min. 4.1.1.1 The atmospheric environmental quality improved as the existing boiler houses demolished Among the 11 sub-projects, the projects involving boiler construction are the central heating project on the north of Yong’an RoadTiedong, Haicheng city, the central heating project of Gongchangling district, Liaoyang City, the central heating project of Dashiqiao city zone in Yingkou, the centralized heating project of Nanfen district, Benxi City, the central heating project of Yangjiazhangzi Development Zone and Phase Central Heating Project of Benxi City. Other projects are just the heating pipeline network construction. Among these six projects, such as Nanfen, Gongchangling and Yangjiazhangzi have no routine monitoring stations. Therefore, the reverse model is only used to predict the impact on environmental air quality for the boiler room demolition program in the central heating project on the north of Yong’an Road, Tiedong, Haicheng city, Haicheng city and the centralized heating project of Dashiqiao district in Yingkou and Phase Central Heating Project of Benxi City .these results are shown in table 4-2: Table 4-2 Summary of Predicted Air Quality Improvement 3 Projects Pollutants PSmg/m The improvement degree on the atmospheric environmental quality

The central heating project PM10 0.19 17.4 on the north of Yong’an Road, Tiedong, Haicheng SO2 0.068 24.4 city

The central heating project PM10 0.408 23.3 of Dashiqiao district in Yingkou SO2 0.042 75.7

Phase Central Heating PM10 0.1036 9.3 Project of Benxi City SO2 0.0568 61.3

4.1.1.2 Impact of new boilers on ambient air quality The Gaussian model is used to predict the impact upon ambient air quality by the boilers to be built under the central heating project on the north of Yong’an , Tiedong, Haicheng city, the central heating project in Dashiqiao District, in Yingkou and Phase Central Heating Project of Benxi City. zThe distribution of daily average concentration Under the typical day weather conditions, the maximum daily average concentration of the pollutants discharged by newly-built boilers is shown in table 4-3. Fig. 4-1 and Fig. 4-2 are the distribution chart of daily average concentration of PM10SO2 discharged from newly-built boilers in Haicheng project for the typical day condition in winter.

Fig.4-3 and Fig. 4-4 are the daily average concentration distribution under the typical day conditions in winter of PM10 and SO2 discharged from newly-built boilers in Dashiqiao project.

Fig.4-5 and Fig. 4-6 are the daily average concentration distribution under the typical day conditions in winter of PM10 and SO2 discharged from newly-built boilers in Benxi Phase project .

Table 4-3 Daily Average Concentration Distribution of the Pollutants Discharged from Newly-Built Boilers The name of project Pollutants Maximum of daily average Percentage accounting concentrationmg/m3 for the standard (%)

The central heating project on the SO2 0.0034 2.3 north of Yong’an Road, Tiedong, Haicheng city PM10 0.00032 0.1

The central heating project of SO2 0.0040 2.7

Dashiqiao district, Yingkou PM10 0.00030 0.1 Phase Central Heating SO2 0.0051 3.4 Project of Benxi City. PM10 0.00124 0.83 zThe annual average concentration distribution The maximum annual average concentration of the pollutants discharged from newly- built boilers is shown in Table 4-4. Fig.4-7 and Fig. 4-8 are the annual average concentration distribution of pollutants discharged from newly-built boilers in Haicheng project. Fig. 4-9and Fig. 4-10 are the annual average concentration distribution of pollutant discharged from the newly-built boilers in Dashiqiao project. Fig. 4-11 and Fig. 4-12 are the annual average concentration distribution of pollutant discharged from the newly-built boilers in Benxi Phase project ..

Table 4-4 Annual Average Concentration Distribution of Pollutants Discharged from Newly-Built Boilers Maximum value of annual Percentage of Name of project Pollutants average concentration the standard mg/m3 value (%) The central heating project SO2 0.0007 1.2 on the north of Yong’an 0.00007 0.04 Road, Tiedong, Haicheng PM10 city The central heating project of SO2 0.0013 2.2 Dashiqiao district, Yingkou PM10 0.00010 0.05 Phase Central Heating SO2 0.00064 1.07 Project of Benxi City PM10 0.00015 0.15

4.1.1.3 Impact of other projects on atmospheric environmental quality The routine atmospheric monitoring data for three years is not available in such three regions as Nanfen, Gongchangling and Yangjiazhangzi, therefore it is very difficult to use the reverse model. The Gaussian plume model is used, with the source intensity of the boilers to be demolished being inputted into the model as a negative value, and the intensity of the source of the proposed boilers being to be inputted as a positive value, to predict the impact on the local air quality. After the project, as some small boiler rooms are demolished, pollutants concentrations will decrease in the sub-project areas, the predicted decrease of the pollutants concentration is shown in Fig. 4-13~, Fig. 4-18 and table 4-5. Table 4-5 Decrease of Maximum Daily Concentration of the Pollutants Maximum Decreasing Percentage Accounting For Name Of Project Pollutants Amount mg/m3 The Standard Value (%)

The central heating project of SO2 0.0736 49.1 Gongchangling district, Liaoyang city PM10 0.0353 23.5

The central heating project of Nanfen SO2 0.0907 59.3

district area, Benxi city PM10 0.0796 52.0

The central heating project of SO2 0.075 74.1 economic development zone, 0.0335 0.33 Yangjiazhangzi PM10

4.1.1.4 Summary of environmental quality improvement in each sub-project

Summary of environmental quality improvement in each sub-s given in table 4-6 Table 4-6 Summary of environmental quality improvement in each sub-project (mg/m3) SO2 PM10 Maximum daily Maximum value of daily Annual average Annual average Name of project average concentration average concentration Present Present Present Prediction Present Prediction Prediction Prediction situation situation situation value situation value value value value value value value The central heating project of the north side of Yong’an Road, 0.023 0.013 0.045 0.024 0.11 0.076 0.15 0.055 Tiedong, Haicheng city The central heating project of Dashiqiao 0.048 0.028 0.212 0.112 0.355 0.265 0.723 0.523 district in Yingkou The central heating project of Nanfen - - 0.089 0.032 - - 0.386 0.337 district area, Benxi city The central heating project of Gongchangling district, - - 0.027 0.0072 - - 0.202 0.189 Liaoyang city The central heating project of Yangjiazhangzi mining - - 0.020 0.0055 - - 0.162 0.155 area Phase Central 0.06 0.022 Heating Project of 0.048 0.116 0.088 0.015 0.159 0.100 Benxi City Standard - 0.06 - 0.15 - 0.10 - 0.15 4.1.2District heating quality improvement

After the project, a large number of small boilers will be closed and no longer to be used, thus the district air quality will be improved. Central heating is considered advantageous in energy saving, urban pollution reduction and urban air quality improvement, thereby improving the urban environment and the residents’ living conditions, which may contribute to the development of the cities.

Table 4-7 Heat Supply Quality Improvement

Number of Area that has Pollutants volume discharged from the pulling realized Central small boiler rooms out of service Name of project down Small heating t/a (ten thousand boiler rooms SO TSP m2 2 The central heating works of north side of Yong’an road, Tiedong, 14 319.7 572.16 433.6 Haicheng City The central heating project at the Gongchangling district, Liaoyang 22 313.65 1120.1 405.5 City The central heating project of 445.7 1879.2 1360.5 Dashiqiao district, Yingkou 64 The central heating project in 131.4 Nanfen district, Benxi city 7 549.4 319.6 The central heating project of 171.47 216.32 96.33 Yangjiazhangzi mining area 4 Phase Central Heating Project 713.4 644.5 941.46 of Benxi City 31 Heating network Construction of Heating Unit Expansion for 66 707 1548.2 5064.2 Fushun Electric Generation Plant Central Heating Network Project in Yingkou Economic 79 1042 1448.3 694.9 Development Zone Central Heating Project for Benxi Iron & Steal Thermal 0 401.6 - - Development Company Huaneng Central Heating Project 960 956.8 2343.0 in North Part of Yingkou 30 Rehabilitation and Expansion Project for Gas Facilities of 0 - - - Yingkou City Sub total 11659. 317 5202.9 8934.98 09

4.1.3 The health condition improvement

At present, due to the coal combustion, various cities in Liaoning province have serious air pollution problems. A survey of respiratory disease records in hospitals indicates that there is an obvious increase in respiratory diseases in winter and spring all over the cities in recent years that is considered primarily due to the increase of particulate matters and sulfur dioxide emitted to the air during the heating period.

Centralized heating project is intended for conserving energy and improving the environment, and also greatly reducing the fine particulates and sulfur dioxide that discharged into the air. Therefore, after the project, as a large number of small boiler rooms are closed, the project area will have an improvement in the local air quality, hence reducing the local residents’ respiratory disease incidence . 4.2 The analysis of adverse environmental impact during construction The adverse environmental impact during the construction phase of the project mainly include the followings: the impact of air-borne dust upon the ambient air quality, the impact generated from the construction machinery, the exhaust gas of transportation vehicles; the impact on ambient environment resulted from the domestic sewage generated by a small number of construction staffs; the impact resulted from the construction noise and construction spoils. 4.2.1 The safety concerns of contractors

A number of contractors will be engaged by the project. Due to the scattered construction site, the relatively poor living and sanitary conditions, the intense laboring and diseases will be easy to spread. In order to ensure the safety of construction, it is necessary to conduct a comprehensive physical examination on the operation staff, and strictly prevent the personnel suffering from contagious diseases from entering the construction site, the medical staff shall also conduct periodic medical examinations, if the disease is found, treatment shall be done in timely manner and the patient shall be transferred out to hospitals, so that epidemics can be prevented from further spreading. As the construction sites are located in urban areas, tap water can be provided in the workers, camps. In addition, the construction site should be provided with medical and health facilities and medical personnel. So the safety and health of the workers can be safeguarded.. 4.2.2 Analysis of the pollution generated by the heat source plant and heat exchange stations

(1) The impact of air-borne dust during construction The air-borne dust during construction phase is mainly caused by the operation of transportation vehicles and construction machines, according to analogical survey data, it can be seen that the impact of the dust resulting from the construction and transport vehicles will impose greater impact upon the area within 30m from the road, and the roadside TSP concentration will be above 10mg/m3.

(2) Waste gas during construction The pollutants from oil-burning machinery and vehicle exhaust pipes mainly include NO2, CO and CmHn, the test results indicate that the concentration of NO2 can be up to 150 g/m3, which my affect an area within 200m from the road.

(3) Waste water during construction The waste water during construction phase is mainly from cement mixing and equipment maintenance in the construction process, and the domestic waste water from workers’ camps. The main pollutants are SS, CODCr. Although the volume of waste water is not too much, it will have an impact on the local water environment in construction area.

(4) Noise during construction Noise during construction is mainly generated from the operation of various machinery and vehicles and bulldozers, excavators, loader, and concrete mixers, etc.

During earth and stone work phase, once at 40m away from the construction site , the noise level exceeds the standard value of 75 dB (A) at daytime, and at 200 m from the site the noise level exceeds 55 dB (A) at nighttime; during the foundation preparation stage, once at 60m from the site the noise level exceeds the standard of 85 dB (A) at daytime, the construction should be prohibited; during the structure construction phase, once at 40m from the site the noise level exceeds 70 dB (A) in daytime, and 200m from the site in night exceeds 55 dB (A), the construction should be prohibited. By contrast and comparison, the noise level in this project will below the respective standard limit. In addition, the transportation vehicles will be a noise source. Under normal circumstances, the transportation vehicles will generate less noise impact at daytime; while in night the transportation vehicle noise would cause important impact on residents. Therefore, the transportation time of vehicles should be carefully scheduled so as to reduce the impact upon the surrounding environment.

(5) Spoil disposal and backfilling in construction project During the project construction phase, the site will be leveled. During the construction phase, spoils will be produced from soil excavation and structure demolition. If the spoils are not disposed of in a proper manner, they will affect the environment in the construction site. Particularly in strong windy and dry days, air-borne dust will occur and impose adverse impact upon the surrounding environment. 4.2.3 Analysis of the pollution generated by heating pipeline network

The impact upon environment generated in the process of heating pipeline network installation and construction. Impacts may vary with different installation methods.

(1) The analysis of atmospheric environment impact The flying dust in construction phase is the major reason causing air pollution in the process of pipeline network construction The air-borne dust is mainly produced in the course of earthwork excavation , stockpiling, materials transporting, structures demolition, backfilling; the exhaust gas emissions from construction machinery, the main pollutants are CO, NO2. When the wind speed is higher than 3.5 m/s, and relative humidity is less than 60%, the strength and scope of the air-borne dust impact is shown in Table 4-8.

Table 4-8 Strength and scope of flying dust impact during construction Distance from the 10 20 30 50 100 construction site (m) Flying dust concentration 10.14 2.89 1.15 0.86 0.61 mg/m3

The flying dust in construction site is generated mainly by the transportation vehicles, which accounts for about 60% of the total and is closely related to the road surface condition and the speed of the vehicle. Under normal circumstances, the flying dust produced at the construction site and the construction roads under the natural wind will affect an area in a radius of 100m from the site.

During the construction phase, sprinkling water on the traffic road surface will significantly reduce flying dust; the dust will be reduced by 80%. The impact of flying dust after sprinkling water in the construction site is shown table 4-9.

Table 4-9 Flying Dust Impact after water spray Distance from the construction site (m) 10 20 30 50 100 The concentration of flying dust after spray 2.01 1.40 0.67 0.27 0.21 water on the road surface(mg/m3)

Table 4-9 shows that sprinkling water upon the construction site and the transportation road can effectively reduce flying dust; the dust concentration at the area 50m from the construction site is 0.27mg/m3, which can meet the environmental standards.

As the pipeline construction period is short and the implementation of such mitigation measures in the process of construction, flying dust during construction will has limited impact upon the surrounding residents. With the end of the construction period, the impact will disappear.

(2) Analysis of the water environmental impact The domestic waste water discharged by the constructors in the construction site of the pipeline network installation is the major water pollution source during construction phase. For different stages of the construction period, the number of constructors will vary; the number generally is about dozens of people but varies from one stage to another. Based on the daily water consumption rate at 50L/ person, and 80% of the water consumed is to be converted to wastewater, the average sewage discharged by per person per day will be 40L/ person. by analogy, the loading of SS is 180mg/ L, CODcr 240 mg/ L, ammonia 25 mg/L. If the above mentioned domestic waste water is discharged directly into waters, the receiving water environment will be degraded; Therefore, sanitary facilities should be provided at sites, and the oil- separating sedimentation basin facilities for sewage treatment should be installed; Due to the short construction period, the wastewater discharge will not have important impact on the environment after the mitigation measures are in place.

(3) The analysis on the solid waste impact The impact mainly comes from the domestic waste generated by the constructors, the construction waste left by construction process, such as packaging bag, building spoils, etc. The domestic waste shall be collected and sent to the landfill for disposal.

The spoils will be collected and stockpiled on a designated site and transported by local sanitation department to a deposit for landfill. All solid waste will be reused on site by careful balance of earth work to the best extent, and thus they will impose small impact upon the environment.

(4) Analysis of the acoustic environmental impact The machinery, mainly including mechanical loaders, road rollers and loading trucks, can produce relatively intense noise during the construction. Major construction equipment noise level is given in table 4-10.

Table 4-10 Noise of Major Construction Mechanical Equipment Construction machine mechanical loaders road rollers loading trucks Noise dB(A) 80 75 78

Construction noise will impose rather greater impact upon the neighborhood community or school close to the proposed heat exchange stations, and the first row of roadside residential buildings along the pipeline.

As the construction period is short, and the operation of construction machinery is temporary, after the construction is completed, the impact on the acoustic environment will disappear. therefore, in the project construction period it has acceptable impact upon the acoustic environment.

(5) Analysis of the traffic impact The impact on traffic during the construction phase is to take place on the pipeline construction sections, which covers three aspects: zbreaking road during the pipeline construction will block the traffic; zthe heaping up of the earthwork and the road excavation will block the traffic; zthe increase of transportation vehicles on the road will increase the vehicle flow.

Pipeline construction has relatively great impact upon road traffic. Although the pipeline will be constructed in several sections, the excavated soils still needs to be stockpiled temporarily, which will cause some impact upon the road traffic along the pipelines. Where the pipelines need to cross a road, the section of the road needs to be closed which will cause significant impact on the traffic on this road. If the pipelines are constructed along the sidewalk, the impact on the pedestrians may be important.

For this project, the amount of materials to be transported is not very great,. In addition, the demand for materials is not concentrated on a particular site. Therefore the impact caused by the increased vehicle flow for this project will not have important impact on the local traffic..

(6) Analysis of the ecological environmental impact The pipeline construction process will have certain degree damage upon the vegetation on both sides of the road, and at the end of construction, we shall restore the vegetation as soon as possible.

(7) Analysis of the pipeline risk Pipeline construction will be conducted on the both sides of the roads. There is municipal pipeline network on both sides of the main road (rain water pipeline network) and the gas pipeline. The main risk to be encountered during construction phase may be the inappropriate construction which results in the damage to the municipal pipeline network, resulting in leakage of rainwater and gas. The ;leaked gas will cause explosions, fires and other accidents.

(8) Among the 11 sub-projects , there are three sub-projects, Central Heating Project in the North of Yong’an Road Tiedong District Haicheng City, Central Heating Project in Yangjiazhangzi Mining Area and Central Heating Project for Benxi Iron & Steal Thermal Development Company, that need to remove asbestos during construction phase. The fiber of asbestos will be released to the air and suspended for a long time. If the asbestos fiber inhaled by the workers, they will accumulate in the lung and lead to pulmonary diseases.

4.3 Analysis of Adverse Impact upon the Environment During the Operation

4.3.1 Ambient air quality

The air pollutants to be emitted from heating plants which burn coals, may mainly include TSP and SO2.

The volume of the pollutants shall be calculated by the following formula in accordance with relevant environment statistical handbook. ——TSP Aar q , arQnet η BgM ([ A ×+×= Ma α 1(]) −××+ C ) 100 100 8100 × 4.187 fh 100 In which Bg——coal burning amount of the boiler t/h

qA——the heat loss due to incomplete combustion % Qnet,ar—— lower heating value of coal combustion kJ/kg Aar——ash contention as received basis % Ma——the increased ash content due to limestone addition t/h

fh——the percentage of flying ash in boiler flue gas %

C——The dust removal efficiency of dust remover %

——SO2  η  so Sar 64 3  −×××= 2  ×× M so 10 CB so 1  2 2   100100 32 In the formula B——coal-consumption of the boilert/h

Cso2——the SO2 share generated from the combustion of fuel containing sulfur, taking 0.8 as the standard Sar——the sulfur content on as received basis %

so2——desulphurization efficiency of dust remover

64——molecular weight of SO2 32——molecular weight of S. 1Pollution control measures The sub-projects all adopt some measures to control the formation of above- mentioned pollutants.

Table 4-11 Pollution control measures Inside Desulph Dust inner Control measure Number Height of Boiler urization removal diameter Name of project of atmospheric of the the stack 2 system efficienc efficiency of pollutants stack m y chimney m The central heating works Bag-house dust of north side of Yong’an Pulverized collector and 90 99.7 1 100 3.0 road, Tiedong, Haicheng coal XP CaSO3 City desulfurizer3 Bag-house dust The central heating Pulverized collector and project of Gongchangling 90 99.7 1 120 3.5 coal XP CaSO district in Liaoyang city 3 desulfurizer The central heating Bag-house dust project of Dashiqiao Pulverized collector and 90 99.7 1 100 4.8 district in Yingkou coal XP CaSO3 desulfurizer Bag-house dust The central heating Pulverized collector and project of Nanfen district 90 99.7 1 150 2.4 coal XP CaSO in Benxi city 3 desulfurizer Bag-house dust The central heating Pulverized collector and project in Yangjiazhangzi 90 99.7 1 130 2.6 coal XP CaSO mining area 3 desulfurizer Bag-house dust Circulatin collector and Phase Central g fluidized Circulating Heating Project Caitun 80 99.8 1 100 3.0 bed fluidized of Benxi City Bed in- furnace desulfurizer

2 The height of stack is designed by the design institute. The air quality forecasting results indicate that the impact of these new boilers on air quality can meet the applicable standards. Thus the height of stack is reasonable.

3 XP dry-wet two-stage combined desulphurization and dedust technology is employed in this project. This technology is an innovation and improvement of conventional lime desulphurization technology by wet method. it was put into use and innovated in industry since 1994. This process involves exhausting flue gas out of a boiler economizer system, then removing dust by means of a dust catcher ( bag dust catcher with a dust removal efficiency over 99.7 ), then introducing the flue gas into a wet thionizer ( desulphurization efficiency over 90 ) by a induced draught fan, and then further removing the fine dust particulates, as well as moisture and fog in the flue gas, finally exhausting to the air through chimneys. Calcium sulfite produced in the process of desulphurization will be oxidized to calcium sulphate at the bottom of thionizer.

The two-stage desulphurization and dedusting process is employed in the process, which involve dust removal by dry method followed by desulphurization, but without settling tank. Corrosion-resistant XP tray device for effective dedusting and desulphurization as well as demister are used. These devices are adaptable to greater variation of loading so as to ensure steady operation of the devices as their structures is rational and the operating range is wide. The deducting rate and desulphurization rate of XP-type desulphurization with a single tray are higher than that with a rotating stream tray, by 5 10 and around 20 respectively.

Bag-house dust Pulverized collector and Xihu 90 99.7 1 150 3.0 coal XP CaSO3 desulfurizer Bag-house dust Wolon Pulverized collector and 90 99.7 1 150 2.4 g coal XP CaSO3 desulfurizer

2Predicted Results for Air Pollutants Emission After the above pollution control methods are adopted, the volume and loading of air pollutants to be discharged by the project are predicted and given in Table 4-12 below. Table 4-12 predicted results for air pollutants emission Volume of pollutants loads standard Project 3 flue gas Pollutants ratet/h concentrationmg/m3 mg/m Haicheng city SO 0.039 142.4 900 271048 Nm3/h 2 project TSP 0.0036 13.1 200 8 6.0×10 SO2 85.7t/a Subtotal 3 Nm /a TSP 7.9t/a Central heat SO2 0.0668 142.7 900 source plant of Ã1PKÃ TSP 0.00963 20.6 200 Dashiqiao project 9 1.67×10 SO2 170.4t/a Subtotal 3 Nm /a TSP 22.1t/a SO 0.047 145.53 900 Gongchangling Ã1PKÃ 2 project TSP 0.0081 25.23 200 8 7.1×10 SO2 103.8t/a Subtotal 3 Nm /a TSP 18.0t/a SO2 0.022 170 900 Nanfen project 129000 Nm3/h TSP 0.0033 26 200 8 3.0×10 SO2 50.64t/a Subtotal 3 Nm /a TSP 7.75t/a Project in SO 0.015 100.7 900 148709 Nm3/h 2 Yangjiazhangzi TSP 0.0027 18.2 200 SO 34.9t/a Subtotal 3.5×108 Nm3/h 2 TSP 6.3t/a Phase 3.68×105 SO 0.077 209.2 900 Caitun 2 Nm3/h TSP 0.0127 34.51 200 Central 5.52×105 SO 0.0538 97.5 900 Xihu 2 Heating Nm3/h TSP 0.0076 13.8 200 Project SO2 0.0179 97.3 900 of 1.84×105 Wolong Benxi Nm3/h TSP 0.0025 13.6 200 City SO 345.99 t/a Subtotal 2.56×109Nm3/a 2 TSP 53.05 t/a 9 6.19×10 SO2 791.4 t/a Sum total 3 Nm /a TSP 115.1 t/a From Table 4-12 it can be seen that the emission rate and concentration of TSP and SO2 from these sub-projects can satisfy the standard at time phase stipulated in Emission standard of air pollutants for coal—burning or oil-burning or gas-fired boilers GB13271-2001 … 4.3.2 Analysis of the acoustic environmental impact

To mitigate the impact on acoustic quality, various measures are to be adopted as shown in table 4-13 below:

Table 4-13 Summaries of noise control measures Noise source Control measures Boilers Set up shock proofing cushion Establishing muffler and sound insulation cover, and employ hose to connect the Blower and induced fan pipeline air vent Setting up muffler pumps Installing sound insulation cover, and sealing off the pump rooms vehicle operation operate inline with schedule, route, and decrease the whistles Shock absorption, soft hose connection, and install sound insulation devices at the Heat exchange station heat exchange station near to the residential area

Above-mentioned pollution control measures are developed to take such three aspects into consideration as noise source, transmission means and sound-receiving body, so as to ensure that the noise level in plant boundary and neighborhood can meet the standards.

The modes employed by these sub-projects to forecast the impact upon noise environment are as follows: Sound pressure level at the prediction point from an outdoor noise source

Loct®= Loct(r0)-20lg(r/r0)-Loct In the formula: Loct ®, Loct (r0) – the sound pressure level at the site r , r0 away from the sound source, dB; r, r0----the distance from the prediction point to the sound source, m; Loct ----various attenuation value, dB. If the octave band sound power level of the sound source Leve is known, and the sound source can be considered to be located on the ground. Then

Loct®= Lwoct -20lgr0-8 Sound pressure level of an indoor sound source nearby enclosure, dB Q 4 2 Loct1=Lwoct+10 lg 4πr + R In the formula: Loct1- the sound power level of an indoor sound source nearby enclosure , dB Lwoct –the sound power level of a sound source, dB r1 — the distance between a certain indoor sound source and the enclosurem Sα R— room constants, R=1−α S— total indoor surface, m2;

∑ i qS The average sound absorption coefficient, α = S Q-directional factor Total sound pressure level of all indoor sound sources near to the enclosure n ∑10 1.0 L ioct )(1, Loct1T=10 lg i=1 Sound pressure level of all sound sources near to the enclosure Loct2T= Loct1T-TLoct+6 In the formulaTLoct — the volume of wall sound insulation (and other enclosures)dB. Equivalent outdoor sound pressure level Convert the outdoor sound level Loct2Tand trans-audient area into equivalent outdoor sound source, and then work out sound power level of equivalent sound source Lwoct. Lwoct= Loct2T+10 lgS Where: S-Sound transparent area, m2. Sound pressure level of equivalent outdoor sound source generated at the prediction spot

Loctr= Lwoct –20 lgr-Loc

In the formula: Loctr— the sound pressure level of equivalent outdoor sound source generated at prediction spots, dB; r-the distance between prediction sites and the sound source, m; Loc— attenuation volume arising from various factors, dB Total equivalent sound pressure level of all equivalent sound sources generated at prediction spots

N M 1 1.0 L ,iAin 1.0 L , jout Leq(T)=10 lg( ) [ ∑t ,iin 10 + ∑t , jout 10 ] T i=1 J =1 In the formula: T — the time used for calculating the equivalent sound pressure level, h; N — the number of outdoor sound sources; M — the equivalent number of outdoor sound sources

The 11 sub-projects are different in the project content, and therefore, the contents on analysis of acoustic environmental impact also vary, which is as shown as follows:

Table 4-14 Analysis of acoustic environmental impact of each sub-project

Name of project Analysis of acoustic environmental impact

The central heating works of north side of Analysis of equipment noise impact from heat source plant Yong’an road at East Rail Road in Haicheng Analysis of operation noise impact from heat exchange City station Analysis of equipment noise impact from heat source plant The central heating project at the Analysis of operation noise impact from heat exchange Gongchangling district area, Liaoyang City station Analysis of equipment noise impact from heat source plant The central heating project of Dashiqiao district Analysis of operation noise impact from heat exchange in Yingkou station The central heating project in Nanfen district in Analysis of equipment noise impact from heat source plant Benxi city Analysis of operation noise impact from heat exchange station The central heating project in Yangjiazhangzi Analysis of operation noise impact from heat exchange mining area station Analysis of the operation noise impact from heat exchange Phase Central Heating Project of Benxi City station Analysis of the noise impact on plant boundary from newly- Central Heating Project for Benxi Iron & Steal built and reconstructed pump station and newly-built sewage Thermal Development Company treatment plant Huaneng Central Heating Project in North Part Analysis of operation noise impact from heat exchange station of Yingkou Rehabilitation and Expansion Project for Gas Analysis of operation noise impact from newly-built gas Facilities of Yingkou City compressor Analysis of transient noise impact resulting from pipeline overpressure in newly-built pressure regulation station

From the above table, it can be seen that the acoustic environmental impact of the rehabilitation and expansion project of gas facilities in Yingkou City and Central Heating Project for Benxi Iron & Steal Thermal Development Company are different from that of other projects.

1Analysis of equipment noise impact from heat source plant The major noise source of heat source plant is the boiler and various fans and pumps. After the project are put into operation, this operation equipment shall be installed indoor; the following is the prediction of the impact of the equipment in each sub- project upon the acoustic environment on the plant boundary and the surrounding neighborhood:

Table 4-15 Noise Prediction Results at Each Prediction Point Unit dB A Daytime Nighttime

Sensitive receptors Project Background Prediction Standard Background Prediction Standard value value value value value value East plant boundary 47.8 48.7 60 42.0 44.8 50 The heat source plant of Haicheng South plant boundary 49.7 52.0 60 41.1 49.0 50 project West plant boundary 54.7 55.0 60 42.4 45.8 50

North plant boundary 50.0 51.1 60 40.0 46.0 50 A residential area outside the south 48.9 50.3 60 40.5 46.2 50 plant boundary The central East plant boundary 48.3 51.7 60 41.8 49.8 50 heating project of Dashiqiao district South plant boundary 48.3 48.8 60 41.8 43.8 50 West plant boundary 48.3 48.8 60 41.8 43.7 50

North plant boundary 48.3 50.7 60 41.8 48.1 50

East plant boundary 49.0 49.9 60 35.4 43.2 50 The central South plant boundary 49.9 50.4 60 35.7 42.2 50 heating project of Gongchagling West plant boundary 50.8 50.8 60 35.5 36.9 50 district in Liaoyang North plant boundary 48.1 49.0 60 39.6 43.8 50

A school to the east 52.4 52.4 60 45.0 45.1 50 The mining hospital 54.8 54.9 60 46.4 46.8 50 to the north A residential area to 51.4 51.5 60 39.2 40.1 50 the northwest East plant boundary 46.1 47.6 60 36.4 45.9 50

The central South plant boundary 48.9 49.5 60 37.5 47.8 50 heating project of Nanfen district West plant boundary 44.6 46.3 60 46.5 47.2 50

North plant boundary 53.4 54.1 60 38.1 46.5 50

East plant boundary 53.5 53.6 60 39.6 42.1 50

South plant boundary 54.7 55.1 60 39.8 46.1 50 The central heating project of West plant boundary 54.1 54.1 60 40.1 40.1 50 Yangjiazhangzi mining area North plant boundary 54.2 54.2 60 40.3 40.3 50 A residential area outside the south 66.8 66.8 60 49.9 49.9 50 plant boundary East plant boundary 52.8 53.1 60 48.5 49.3 50 West plant boundary 52.4 52.4 60 49.4 49.9 50 Caitun South plant boundary 52.8 53.1 60 47.2 48.1 50 North plant boundary 55.0 55.4 60 47.9 49.4 50 East plant boundary 58.7 58.9 60 55.7 56.2 50 Phase West plant boundary 55.3 56.1 60 46.8 50.5 50 South plant boundary 55.3 56.1 60 47.4 50.9 50 Central Xihu Heating North plant boundary 54.4 54.4 60 45.2 45.6 50 Project A residential area of outside the western 49.1 50.0 60 42.9 45.9 50 Benxi plant boundary City East plant boundary 46.5 47.7 60 43.3 45.5 50 West plant boundary 50.5 50.7 60 43.7 44.8 50 South plant boundary 46.1 47.1 60 43.7 45.4 50 Wolong North plant boundary 50.5 51.9 60 44.1 48.5 50 A Residential area outside the western 45.5 45.6 60 46.1 46.2 50 plant boundary

Table 4-15 shows that after the project, the noise level at plant boundary will increase to somewhat extent, but can still meet the requirement stipulated in the Standard of noise at boundary of industrial enterprises (GB12348-90) Grade II; the noise at the residential area surrounding the plant boundary can satisfy the Class 2 standards stipulated in Standard of environmental noise of urban area (GB-93).

NOTEThe noise value at the residential area outside the south plant boundary of Yangjiazhangzi project exceeds the standard, because the value of background exceeded the standard. The noise of this project has no impact on it. (2) Analysis on the Noise Impact from Heat Exchange Stations

Operation of heat exchange stations will produce noise, which will affect the environmental sensitive receptors. Regarding the heat exchange station, the main equipment generating noise is the circulating pump and water replenishment pump. When the heating load in heat exchange station is greater than 3.5MW, three circulating pumps will be installed, with one standby; when heating load of heat exchange station is less than 3.5MW, two circulating pumps will be installed, with one standby; 2 water-replenishment pumps installed, with one standby.

Table 4-16 Analysis of Acoustic Environmental Impact from Heat Exchange Station

Name of project Analysis of acoustic environmental impacts

The results of noise level prediction using the mode recommended in standards of PR China environmental protection industry HJ/T2.4 1995 Technical Guidelines for Environmental Impact Assessment----Sound Environment indicate that , provided that the distance between residential area and heat exchange station is no less than 10m, the Newly-built heat exchange station impact of the operation noise of heat exchange station will be around 40dB (A) after the natural attenuation as the noise travel. Thus the noise level upon residents, and will not result in the noise in residential area exceeding the standard requirement. So, the EIA requires that in the process of heat exchange site selection, we should maintain the distance between heat exchange station and residential buildings to be over 10m, As for these heat exchange stations reconstructed on the basis of original heat exchange Upgrading of station or boiler room, if the distance between heat exchange station and the existing exchange neighborhood can not be maintained longer than 10 meters, the EIA requires that the station or boiler pump in heat exchange station shall install sound insulation cover, so as to ensure room acoustic environment of the residential area can meet the standard.

3) Analysis of acoustic environmental impact of the rehabilitation and expansion project of gas facilities in Yingkou City and the Central Heating Project for Benxi Iron & Steal Thermal Development Company

As the two projects do not involve construction of heat exchange stations and boiler rooms, the environmental impacts are different from others; the analysis on the impact on acoustic environment is as follows:

Table 4-17 Analysis of acoustic environmental impact Name of project Analysis of acoustic environmental impact After this project, the noise level on plant boundary will not be increased, so the current noise level on the plant boundary will be remain intact , which may satisfy the Class II standards requirement of the Noise Standards of Plant Boundary Industrial Enterprises The rehabilitation and (GB12348-90). expansion project of In addition, to mitigate the noise simultaneously released from the pipeline air release gas facilities in valve due to overpressure in the newly-built pressure regulation stations, the project Yingkou City design will increase the diameter of the overpressure pipe and install muffler on it. The newly-built pressure regulation stations are established at the intersection of main roads, after taking the measures, the fourth category standards requirement stipulated in Noise Standards of Urban Regional Environment (GB - 93) can be satisfied. The main noise source of this project include: first-level pump station and relay pumping station in power plants , the initiating pump station of coking heating network and sewage pumping stations and hot water pumping stations in sewage treatment plants. Central Heating With effective noise control measures, the plant boundary noise from newly-built Project for Benxi and reconstructed pump stations and sewage treatment plants can meet the Grade III Iron & Steal Thermal stipulated in Noise Standards of Plant Boundary of Industrial Enterprises (GB12 348- Development 90), The plant boundary noise of the newly-built relay pumping stations at Dahe market Company can satisfy Category II standards stipulated in Noise Standards of Plant Boundary of Industrial Enterprises (GB12348 -90).

4.3.3 Analysis of waste water impact

1Industrial waste water The situations of all sub-projects discharging industrial waste water are shown in Table 4-18.

Table 4-18 Discharge Situations of Waste Water Pollutants from Sub-Projects Pollutant Production Discharge Concentration Source of water of waste Name of project volume (mg/L) Direction Name and process of Sewage treatment plants pollution water (t/d) t/d COD SS Cooling water 52 0 50 30 from dust blower Used for damping of ash and Cooling water slag The central heating 30 0 50 30 from stove grate project on the north of Haicheng Sewage treatment plants Boiler wastewater 12 12 50 40 Sewage treatment plants Yong’an Road, Carrousel process Tiedong, Haicheng backwashing of soft water City 40.5 40.5 30 40 Sewage treatment plants processing equipment standard 500 400 Cooling water 60 0 50 30 from dust blower Used for damping of ash and Cooling water slag 30 0 50 30 Gongchangling Sewage treatment plants The central heating from stove grate Carrousel process project at the Boiler wastewater 12 12 50 40 Sewage treatment plants

Gongchangling backwashing of district, Liaoyang City soft water 40.5 40.5 30 40 Sewage treatment plants processing equipment standard 350 350 Cooling water Used for damping of ash and 83 0 50 30 from dust blower slag Cooling water Used for damping of ash and 44 50 30 from stove grate 0 slag The central heating Drain into Yuni river project of Dashiqiao Boiler wastewater 19 19 50 40 through municipal pipeline district in Yingkou backwashing of soft water Drain into Yuni river 64 64 30 40 processing through municipal pipeline equipment standard 150 150 backwashing of soft water 20 0 50 30 The central heating processing Used for damping of ash and project in Nanfen equipment slag district in Benxi city Cooling water 45 20 50 30 from stove grate Drain into Xi river through Boiler wastewater 6 6 50 40 municipal pipeline standard 50 70 Cooling water Used for damping of ash and 25 0 50 30 from dust blower slag Cooling water Used for damping of ash and 14 0 50 30 The central heating from stove grate slag Yangjiazhangzi Sewage treatment plants project in Boiler wastewater 6.2 6.2 50 40 Sewage treatment plants Yangjiazhangzi mining backwashing of Biological filter process area soft water 20.8 20.8 30 40 Sewage treatment plants processing equipment standard 500 400 Phase backwashing of Central Heating soft water Used for damping of ash and 31 0 30 Project of processing slag Benxi City Cait equipment un Used for damping of ash and Boiler wastewater 7 0 50 40 slag Washing of 19 19 60 120 Sewage treatment plants Benxi Sewage treatment plants equipment SBR process backwashing of soft water Used for damping of ash and 45 0 30 processing slag Xih equipment u Used for damping of ash and Boiler wastewater 12 0 50 40 slag Washing of 29 29 60 120 Sewage treatment plants equipment backwashing of soft water 12 0 30 Wo processing Used for damping of ash and lon equipment slag g Boiler wastewater 2.4 0 50 40 Washing of 9.6 9.6 60 120 equipment standard 500 400 Wastewater(ten 11.7 4.7 - - - thousands t/a ) Sum total CODcr(t/a) - 17.8 - - - SS(t/a) - 25.1 - - - 2Domestic waste water Discharge situations of domestic waste water from the sub-projects are as shown in Table 4-19

Table 4-19 Discharge situations of domestic waste water from the sub-projects Pollutants concentration Discharge Name of project (mg/L) disposal volume (t/d) COD SS central heating works of north side of Yong’an road at east rail road in 12.4 Sewage treatment plants Haicheng city central heating project at the Gongchangling Sewage treatment plants district, Liaoyang City 6.4 central heating project of Dashiqiao city zone Drain into Yuni river in Yingkou region through municipal pipeline 6.5 after biological contact oxidation process Drain into Yuni river central heating project of Nanfen district, through municipal pipeline Benxi city 5.5 after biological contact oxidation process central heating project of economic mining 240 180 Sewage treatment plants Area, Yangjiazhangzi 11.3 Phase Central Heating Project of Benxi City 23.5 Sewage treatment plants Heating network Construction of Heating Unit Expansion for Fushun Electric Generation 18.9 Sewage treatment plants Plant Central Heating Network Project in Yingkou Sewage treatment plants Economic Development Zone 19.1 Rehabilitation and Expansion Project for Gas Sewage treatment plants Facilities of Yingkou City 0 Central Heating Project for Benxi Iron & Steal Sewage treatment plants Thermal Development Company 17.2 Huaneng Central Heating Project in North Part Sewage treatment plants of Yingkou 0 Sewage treatment plants 17800t/a 4.29t/a 3.2t/a

4.3.4Treatment Situations of Solid Waste

Table 4-20 Management of solid waste in sub-projects Volume of Transpor Domesti Name of project ash and slag Storage mode tation Fate c refuse Fate 10000 t/a mode (t/a) central heating Closed works of north Delivered to tanker Buried at side of Yong’an Short-term storage in brickyard for transportatio 9.7 landfill 1.7 closed slag storehouse comprehensiv road at east rail n ground e utilization road in Haicheng city central heating project Closed Delivered to at the Gongchangling tanker Buried at Short-term storage in brickyard for district, Liaoyang City transportatio 11.8 landfill 3.0 closed slag storehouse comprehensiv n ground e utilization central heating project 2.2 Short-term storage inClosed Delivered to15.5 Buried at of Dashiqiao city zone closed slag storehousetanker brickyard for landfill of Dashiqiao city zone closed slag storehousetanker brickyard for landfill in Yingkou region transportatiocomprehensiv ground n e utilization

Closed delivered to central heating project tanker Buried at Short-term storage in brickyard for of Nanfen district, transportatio 13.8 landfill 1.4 closed slag storehouse comprehensiv Benxi city n ground e utilization

Closed Delivered to central heating project tanker Buried at Short-term storage in brickyard for of economic mining transportatio landfill 1.1 closed slag storehouse comprehensiv8.9 Area, Yangjiazhangzi n ground e utilization

Closed Delivered to Phase Central tanker Buried at Short-term storage in brickyard for Heating Project of transportatio landfill 4.9 closed slag storehouse comprehensiv30.54 Benxi City n ground e utilization

Heating network Construction of Heating Unit - - - - 50 - Expansion for Fushun Electric Generation Plant Central Heating Network Project in - - - - 50 - Yingkou Economic Development Zone Rehabilitation and Expansion Project for ------Gas Facilities of Yingkou City Central Heating Project for Benxi Iron & Steal Thermal - - - - 60 - Development Company Huaneng Central Heating Project in ------North Part of Yingkou Sum total 14.3 - - - 250.24 -

4.3.5 Accident Risk Prevention Measures and Accident Emergency Response Plans for Gas Facilities Extension and Rehabilitation Project in Yingkou City

The natural gas is very easy to inflame and explode, although more stringent requirements are stipulated for its storage and transportation, , the leakage is still likely to occur. Presence of fire near the natural gas will present a great risk of explosion, and hence imposing threat upon the safety of nearby residents and structures. Therefore, in accordance with the requirements of Guideline for Environmental Risk Assessment, the project should formulate emergency plans, so that when the accident occurs, proper measures can be immediately used to control the further development of the accident and minimize the damage caused by incidents.

The main contents of project emergency response plan are as shown in Table 4-21.

Table 4-21 Emergency Response Plan of Accident Risk in the Project Serial Items Description number Major source of risksnatural gas storage tanks, gas pipelines ,etc. Emergency 1 Environmental Protection Goals : neighborhood, hospitals and schools around planning zone the gas plants and both sides of pipelines. The company shall set up emergency response organizations, and the managers shall be completely responsible for emergency plan and coordination, emergency Emergency personnel shall be skilled workers after training; regional emergency 2 organization organizational structure shall be constituted by the local government, experts of structure relevant industry, related health and safety units, and all the members shall be mobilized by the local government. Classification of Emergency response plans for different level of emergency should be developed, 3 Emergency and which include the measures for rescue and control. Triggering Emergency Emergency establishment, facilities and equipment. 4 rescue support To develop detailed plan for warning and communication methods for the responsible agencies, including the office location, hotline telephone numbers Warning and and the related plan for traffic coordination and control, and fire fighting. 5 communication regarding inter-regional issue ,we shall keep in touch with relevant regional environmental protection departments and the higher environmental protection departments , so as to timely maintain contact and notify the accident disposal Emergency To organize professional teams to investigate and monitor the accident, assess 6 environmental the nature, parameters and the consequences of the accident so as to provide monitoring decision-making base.

Emergency To strictly stipulate the zones for fire control, remedial measures and equipment, 7 rescue and and staff, for the areas vulnerable to accidents, the accident site and the adjacent control measures areas.

Emergency In accordance with the stipulation of controlling the gas concentration in the withdrawal and accident site, gas source plants and adjacent regions of gas pipelines, and the 8 evacuation plan region affected by the accident, we shall establish emergency evacuation plans for staff and with rescue, medical ambulance and public health measures. public Emergency To formulate the relevant termination procedure under emergency state, the rescue and handling of the aftermath and remedial measures within the site of the accident 9 termination and the affected scope, and relieve the alertness of the accident and execute procedures under rehabilitation measures at the neighboring region emergency state Emergency 10 To regularly arrange training and exercise for relevant personnel. training plan

Public education To carry on public education, training and dissemination of relevant information 11 and information in areas neighboring gas source plant and along the gas pipeline route.

4.3.6 Cultural properties

As is confirmed by the local cultural relics administrations: within the impacted range of this project, there are neither scenic and tourism spots, forests or important cultural relics sites given special protection at national level, provincial level or municipal level, nor natural reserves in such project areas as Haicheng, Dashiqiao, Gongchangling, Fushun, Benxi city proper, Nanfen district of Benxi City, Yingkou city proper and Yingkou Economic Development Zone Shengshui Temple of Mountain Lotus, which is 200m east to the centralized heating project of the heat source plant in Yangjiazhangzi Economic Development, has been listed as the provincial-level cultural site under good protection, which also attracts a lot of tourists.

Table 4-22 Impact of on cultural properties Cultural Waste Waste Noise Atmosphere property water solid he centralized heating Firstly, according to the atmospheric quality project is around prediction, the ground concentration of SO2 reaches 200m away from the max value under the circumstances of Grade B Shengshui Temple, stability and 1.5 m/s wind speed, that is, 0.00766mg/ on which the noise m3, the max precipitating distance is in the leeward generated during around 2100m away from the stack. However, operation will not Shengshui Temple, as a sensitive receptor, is located have any impact. on the side wind direction, so the max precipitated

concentration of the pollutants has no impact on the Shengshui No No Shengshui Temple. Temple impact impact In addition, after the implementation of the centralized heating project of Yangjiazhangzi project, 3 sets of 29 MW hot water boilers will be built to replace the existing 4 small boilers, so the concentrations of TSP and SO2 in regional ambient air at the sensitive receptor (that is, Shengshui Temple) will be less than the present concentrations. See tab.4- 23. The impact on atmosphere is positive  Table 4-23 Impact of on cultural Properties Item Cultural relics region Reduced quantity after small boilers being closed(mg/m3).

PM10 Shengshui Temple 0.0021

SO2 Shengshui Temple 0.0047

4.3.7 Relation with other projects

In the 10 projects, 3 are heating network development projects to match the heat source development programs not financed by the World Bank. Under the 3 projects, only the pipeline network projects are to be finance by the World Bank, with the heat source projects to be financed by the local counterpart funds. Thus the environmental assessment for the heat source projects is not included in this report. The schedules of all the heat source projects are as follows: Table 4-24 Implementation Schedules of the Heat Source Projects Implementation Pipeline network Heating source Schedule of the Status of EIA for the heat source projects Project project heat source projects

In Feb., 2004, Fushun Power Station entrusted Liaoning The heat supply Academy of Environmental Science to carry out the The heating network unit capacity The feasibility environmental impact assessment. National EPB approved the construction of the expansion study report has EIA for this project in Nov., 2004 by the document heat supply capacity project of Fushun been approved. 2004No.475 Reply Letter of Examination Views on the expansion project of Power See Attachment. Environmental Impact Report of Heat Unit Expansion Project Fushun Power Plant Station2h300 2h300MWof Fushun Power Station. See Attachment. MW The heating network The heating project for urban Set alteration Heating supply centralized heating of project will begin in the Municipal EPB of Huludao approved the EIA in Nov.,2007. Yingkou Economic & (2h320MW) of year of 2008. technological Huaneng Yingkou Development Zone Power Station The newly-built The Huaneng project The preliminary centralized heating (2h350MW) of feasibility study Liaoning Academy of Environmental Science was engaged to project north of Huaneng Yingkou report has been carry out the EIA in Feb.,2007. Yingkou Thermal Power approved. See Station Attachment. Benxi Iron & Steal Central Heating Co. increased 280 Project for Benxi Iron ten thousands t/a & Steal Thermal operational National EPB approved the EIA in 2005. see the attachment Productivity of Development steel sheet and Company high strength metal

5 Comparison of Alternatives

Based on the information provided in the feasibility study report for this project, several alternatives have been developed and compared in the EIA stage, as shown in Table 5-1 below.

Table 5-1 Comparison and Selection of Alternatives

Projects Alternative 1 Alternative 2 preferred alternative Component

The site on Shuangsanzi to be constructed with a heat source plant The site on the Waihuanlu to be Shuangshanzi Heat Source Plant is at the edge of The boiler house will be constructed on an open space with an area being constructed with a heating plant this heat supply service area, thus no spare load is 30,000 m2, west of Shuangshanzi. This site is in the northeast of Haicheng This project is located at an expected,Waihuanlu Heat Source Plant is 1.5 Central City. The prevailing wind in winter is NW.. It is expected that the flue gas open space, at the edge of the kilometers away from the edge of this heat supply Heating emission from this location may virtually not affect the air quality in the city. northeast of Haicheng planning area, with longer spare load and higher power Project in the Site In addition, this location is close to the center of heating loading, and is zone, bordered by the City Heat consumption all year around. Moreover, North of location for convenient in transportation,. The terrain on this site is flat and no need for Supply Company to the Waihuanlu Heat Source Plant site is located Yong’an the heat resettlement. This site is desirable for construction of a heating plant. northeast, and by the Outer within a zone planned for long-term development, Road source Ring Road to the north. This which may have potential environmental impact Tiedong plant site is desirable for construction on this zone. so Shuangshanzi Heat Source Plant Haicheng of a heating plant, except that site is preferred. City the site is relatively far from the heating load center and municipal water supply network. This site is located at Shuaiwanzi, which has been zoned for the construction This site is located in Xinshan, Through comprehensive analysis, alternative one of municipal facilities. In addition, no need for resettlement is expected.. north of a river. Although this is selected as the location of the proposed heat Central Site site is closer to the load center source plant. Heating location for than alternative one, this site is Project in the Heat near a key road through which Nanfen source to access this area. This site is District plant also zoned for development of Benxi city commercial residential buildings. Heating Totally two high-temperature hot water trunk pipelines and a high-pressure The trunk pipeline will be Both of the alternatives can meet the requirement Network steam pipeline will be constructed to connect the heat plant with the heat constructed along the west of the heating supply planning. The service areas Construction exchange station and the Fushun Electroceramics Factory respectively. bank of the Fuxi River to are reasonably zoned in the two alternatives. of Heating connect with the existing However the alternative one could maintain Power Unit Pipeline One high-temperature hot water trunk pipeline is buried under the south side pipeline. equilibrium in the heating demand management. Expansion alignment of Gaoshan Road. it will be aligned toward east to the slum area to the north Additionally, the program for constructing the Project for of the excavator factory, toward west to the slum area to the north of third ring heating network has been carefully Fushun Jiangjun, and toward south to the slum area to the west of Ningyuan Street. considered in alternative one. Thus alternative Electric Another high temperature hot water trunk pipeline is aligned toward one is preferred. Generation south to cross a railway, where it will be divided into two pipelines aligned Plant toward east and west respectively. The pipeline toward east will be connected with the trunk pipeline of the Dongcheng Heating Company with a service area being 2 million m2, then continue to extend to the new planning zone in the eastern part of the city to service an area of 1.5 million m2; another pipeline will be aligned toward south to cross the Bridge before reaching the Gongyuan area, then it is oriented along the south side of the Fengxiang Road to provide heating to an area of 2.0275 million m2 once was serviced by 30 small boiler houses; a secondary DN 800 pipeline will be oriented toward west to reach the west bank of the Fuxi River where it is connected with the Xingdong Trunk Pipeline to service an area of 2.92 m2 , which was serviced by 11 small boilers. These small boilers will be demolished under this project. The high-pressure steam pipeline, DN500mm, will be constructed along the east side of Fushun City Road to Fushun Electroceramics Factory. This pipeline will be directly buried, an outer sleeve will be used to protect the pipeline. Ultra-fine glass fibers will be used for heat insulation, with a thickness being 100mm, the inner pipe is made of seamless steel pipe, the outer protective tube is made of spiral welding steel tubes, and the working pressure is 1.6Mpa. 6. Environmental Management Plan

During the preparation of the EA summary report for the LMC3, following documents are based or used: the laws and rules on environmental protection in the People’s Republic of China, the World Bank safeguard policies, relevant environmental protection regulations and planning documents as well as project design documents issued in Liaoning province and the project cities, the environmental impact assessment documents for the construction project issued by the State Environmental Protection Administration of China and the international environmental agreements for which China is a signatory, etc. The environmental management plan for each sub- project is briefly described as follows, and for details please refer to the environmental management planEMP for each sub-protect.

6.1 Environmental Mitigation Measures and Monitoring Plan

The mitigation and monitoring plans of the various sub-projects are shown in Table 6- 1.

Table 6-1 Environmental monitoring plans and mitigation measures of the sub-projects Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring Central Heating Project in the North of Yong’an Road Tiedong Haicheng City Construction stage 1Schedule reasonable construction time from 6:00 am-10:00 pm, construction in night is forbidden. 2 select construction equipment with low noise; construction of pile foundation uses hydraulic pile Environmental driver, static pressure pile driver and holing pile Once a week in the monitoring station of Environmental driver; construction equipment is operated in the Construction daytime or each time a Noise 8000 Yuan Anshan city Protection Bureau Noise central area of the site. period complain be received of Anshan City

3 The noise of construction equipment must satisfy Construction unit the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in the bidding documents for the contractors.. 4 Follow up monitoring 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry and windy weather. 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of building material. 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels Environmental Construction Once a week in dry or Dust so that vehicles will not take dirt out of the 1500 Yuan Construction unit Protection Bureau Dust period windy whether building sites. of Anshan City 4Powder materials shall be transported by tankers or covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 7Set up fence around building sites to reduce the flying dust. Domestic waste will be timely collected to Haicheng Landfill in Wangshi Town, which is 3.7km to the Environmental Two or three times Construction Solid waste south of Haicheng city proper ; spoils will be 1100 Yuan Construction unit Protection Bureau Solid waste during period transported in timely manner to the same place for of Anshan City dismantlement landfill.. 1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 500 Yuan Construction unit Communication of communi Once a week communication period name and the words “Please understand the Anshan City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant agencies in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved to prevent any artificial articles from being removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural Construction Cultural Uninterrupted relics institutions. 900 Yuan Construction unit Bureau of Anshan property period property monitoring 3. Go to cultural administration to apply for resuming City works after the cultural relics are well dealt with. 4. After getting the permission from cultural administrations, proceed with construction following the advice of cultural relic’s experts. 5. The above contents shall be set forth in the contract concluded with contractors. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 1 The operators should be provided with proper protective gears before being allowed to remove and the asbestos. 2 Warning signs shall be installed on construction site. 3 Spray water continuously throughout the process. 4 Operators shall wear dust masks and protective clothing before remove asbestos. Environmental 5 develop proper plan and adopt the method of Environmental Construction monitoring station of Uninterrupted asbestos removal of entire piece of asbestos . 2000 Yuan Protection Bureau Dust period Anshan city monitoring of Anshan City 6 Set up safety fence, to prevent public from the site. Appoint professional technicians to manage the operation on site. 7 The removed asbestos shall be collected into airtight bags, and then put into cement tanks dedicated for asbestos storage which will be sealed with cement. 8 Transported to a certified hazardous waste landfill for disposal.

Operation stage Fiber filter (bag house ) is used to remove dust with an efficiency being 99.7%; XP-type dry-wet two- stage combined desulphurization and dedust Environmental Environmental Atmosphere- Operating TSP Each time there is coal technology is used to remove SO2 with a 10000 Monitoring Station Protection Bureau TSP SO period SO arrived 2 desulphurization efficiency being 90%, three boilers of Anshan City of Anshan City 2 share one stack with a height of 100m and inside diameter at outlet of 3.0m. In order to lower the noise from the plant, set up a separate house for blowers; install separate Once in the heating foundations or vibration-isolation measures for such Environmental Environmental season, and Operating Noise from the equipment as water pumps and blowers etc., which 200 Monitoring Station Protection Bureau Noise anytime when a period heat source plant have a larger vibration; inlet and outlet connection use of Anshan City of Anshan City complain be soft hose joint; in development of the general layout received consideration should be given to reduce the noise Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring level and stop the transmission of noise. The wastewater from soft water processing, blower cooling and boilers should be used for slag washing; Environmental Environmental domestic sewage, after treated in septic tanks, will be Operating COD Wastewater 5000 Monitoring Station Protection Bureau Once a month discharged into municipal sewers together with period SS of Anshan City of Anshan City wastewater from equipment washing , and ultimately into municipal sewage plant. The solid wastes of this project mainly include the ash and slag from coal combustion in boilers as well as a Environmental Environmental small amount of domestic waste. Of them, ash and Operating Solid waste 500 Monitoring Station Protection Bureau Solid waste Once a month slag will be comprehensively utilized for brick- period of Anshan City of Anshan City making, and the domestic waste will be transported to Haicheng Landfill in Wangshi Town for disposal. 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise caused by vibration; the inlet and outlet of water Once in the heating pumps is connected with rubber hose. Install Environmental Environmental season, or Noise from the another concrete foundation for water pump, and Operating 500 Monitoring Station Protection Bureau Noise anytime when a heat exchange set shock absorber between the foundation and period of Anshan City of Anshan City complain be station ground or between the foundation and walls so as received to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted. &HQWUDOÃ+HDWLQJÃ3URMHFWÃRIÃ*RQJFKDQJOLQJÃ'LVWULFWÃRIÃ/LDR\DQJÃFLW\ Construction period 1Schedule reasonable construction time from 6:00 Once a week in the am-10:00 pm, construction in night is forbidden. Environmental Environmental Construction daytime or each time a Noise 3000 Monitoring Station Protection Bureau Noise 2 The noise of construction equipment must satisfy period complain be received of Liaoyang City of Liaoyang City the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring the bidding documents made by construction companies. 3. Monitor noise levels on the environmental sensitive receptors and construction sites once week. 4Temporary noise barrier should be established around such sensitive receptors as hospitals, schools and residential areas. Height and structure of noise barrier should be designed to fit the site conditions. 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry and windy weather. 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of building material. 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels so that vehicles will not take dirt out of the Environmental Construction Once a week in dry or Dust 6000 Construction unit Protection Bureau Dust building sites. period gale whether 4Powder materials shall be transported by tankers or of Liaoyang City covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Domestic waste will be timely collected and carried to Environmental Gongchangling Landfill in Sunjiazhai, which is 3.7km Sanitation Two or three times southwest of Gongchangling city proper; the Construction Solid waste 2500 Construction unit Administration of Solid waste during construction waste will be transported in timely period Liaoyang City dismantlement manner and carried to places appointed by

Gongchangling District Environmental Sanitation Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring Bureau for stockpiling. 1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 1000 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Liaoyang City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural Construction Cultural Uninterrupted 3000 Construction unit Bureau of property relics institutions. period property monitoring 3. Go to cultural relic’s administration to apply for Liaoyang resuming work after the cultural relics are well dealt with. 4. After getting the permission from cultural relic’s administrations, proceed with construction following the advice of cultural relic’s experts. Operation period The pulse bag dust remover is used to remove dust, Once in the heating with the dust removal efficiency 99.7%, XP-type Environmental Environmental season, and Atmosphere- calcium sulfite desulphurization technique will be Operating TSP 8000 Monitoring Station Protection Bureau anytime when a TSP SO adopted with a desulphurization efficiency of 90%; period SO 2 of Liaoyang City of Liaoyang City 2 complain be three boilers share one chimney with a height of 120m received and the inside diameter at outlet being 3.5m. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring In order to lower the noise from the plant, set up a separate house for blowers; install separate foundations or vibration-isolation measures for such Environmental Environmental Once a week or any equipment as water pumps and blowers etc., which Operating Noise from the 1000 Monitoring Station Protection Bureau Noise time a complain have a larger vibration; inlet and outlet connection use period heat source plant of Liaoyang City of Liaoyang City be received soft hose joint; in development of the general layout consideration should be given to reduce the noise level and stop the transmission of noise. The wastewater from soft water processing, blower cooling and boilers should be used for slag washing; Environmental Environmental domestic sewage, after treated in septic tanks, will be Operating COD Wastewater 2000 Monitoring Station Protection Bureau Once a month discharged into municipal sewers together with period SS of Liaoyang City of Liaoyang City wastewater from equipment washing , and ultimately into municipal sewage plant. The solid wastes of this project mainly include the ash and slag from coal combustion in boilers as well as a Environmental Environmental small amount of domestic waste. Of them, ash and Operating Solid waste 500 Monitoring Station Protection Bureau Solid waste Once a month slag will be comprehensively utilized for brick- period of Liaoyang City of Liaoyang City making, and the domestic waste will be transported to Gongchangling Landfill for disposal. 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise caused by vibration; the inlet and outlet of water Once in the heating pumps is connected with rubber hose. Install Noise from the Environmental Environmental season, or another concrete foundation for water pump, and Operating heat exchange 1000 Monitoring Station Protection Bureau Noise anytime when a set shock absorber between the foundation and period station of Liaoyang City of Liaoyang City complain be ground or between the foundation and walls so as received to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted &HQWUDOÃ+HDWLQJÃ3URMHFWÃRIÃ'DVKLTLDRÃRIÃ

1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 500 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Yingkou City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural Construction Cultural Uninterrupted 900 Construction unit Bureau of property relics institutions. period property monitoring 3. Go to cultural relic’s administration to apply for Yingkou City resuming work after the cultural relics are well dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts Operating period Atmosphere- The pulse bag dust remover is used to remove dust Operating Environmental Environmental TSP Once in the heating 10000 TSP SO2 with a dust removal efficiency being 99.7%; XP-type period Monitoring Station Protection Bureau SO2 season, and Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring calcium sulfite desulphurization technique will be of Yingkou City of Yingkou City anytime when a adopted with a desulphurization efficiency of 90%; complain be three boilers share one chimney with a height of 100m received and inside diameter at outlet being 4.8m. In order to lower the noise from the plant, set up a separate house for blowers; install separate foundations or vibration-isolation measures for such Environmental Environmental equipment as water pumps and blowers etc., which Operating Noise from the 200 Monitoring Station Protection Bureau Noise have a larger vibration; inlet and outlet connection use period heat source plant of Yingkou City of Yingkou City soft hose joint; in development of the general layout consideration should be given to reduce the noise level and stop the transmission of noise. The wastewater from soft water processing, blower cooling and boilers should be used for slag washing; Environmental Environmental domestic sewage, after treated in septic tanks, will be Operating COD Wastewater 5000 Monitoring Station Protection Bureau Once a month discharged into municipal sewers together with period SS of Yingkou City of Yingkou City wastewater from equipment washing , and ultimately into municipal sewage plant. The solid wastes of this project mainly include the ash and slag from coal combustion in boilers as well as a Environmental Environmental small amount of domestic waste. Of them, ash and Operating Solid waste 500 Monitoring Station Protection Bureau Solid waste Once a month slag will be comprehensively utilized for brick- period of Yingkou City of Yingkou City making, and the domestic waste will be transported to Dashiqiao Landfill for disposal. 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise Once in the heating Noise from the caused by vibration; the inlet and outlet of water Environmental Environmental season, or Operating heat exchange pumps is connected with rubber hose. Install 500 Monitoring Station Protection Bureau Noise anytime when a period station another concrete foundation for water pump, and of Yingkou City of Yingkou City complain be set shock absorber between the foundation and received ground or between the foundation and walls so as to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted &HQWUDOÃ+HDWLQJÃ3URMHFWÃRIÃ1DQIHQÃ'LVWULFWÃRIÃ%HQ[LÃ&LW\ Construction period 1Schedule reasonable construction time from 6:00 am-10:00 pm, construction in night is forbidden. 2 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in Environmental Once a week in the the bidding documents made by construction Monitoring Station Environmental Construction daytime or each time a Noise companies. 7000 of Benxi City Protection Bureau Noise period complain be received 3. Monitor noise levels on the environmental sensitive of Benxi City

receptors and construction sites once week. Construction unit 4Temporary noise barrier should be established around such sensitive receptors as hospitals, schools and residential areas. Height and structure of noise barrier should be designed to fit the site conditions 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry and windy weather. 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of building material. Environmental Construction Once a week in dry or Dust 3Each inlet and outlet of building sites shall be 9000 Construction unit Protection Bureau Dust period gale whether provided with facilities to clean up dirt on wheels of Benxi City so that vehicles will not take dirt out of the building sites. 4Powder materials shall be transported by tankers or covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring materials with dustproof net. powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Environmental Domestic waste will be timely collected to Benxi Sanitation Two or three times Municipal Landfill; the spoils will be removed in Construction Solid waste 3000 Construction unit Administration of Solid waste during timely manner to places appointed by Benxi City period Benxi City dismantlement Government.

1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 2000 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Benxi City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any Cultural Affairs Cultural artificial articles to be removed. Construction Cultural Uninterrupted 6000 Construction unit Bureau of Benxi property 2. Wait for identification and treatment by cultural period property monitoring City relics institutions. 3. Go to cultural relic’s administration to apply for resuming work after the cultural relics are well dealt with. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 4. After getting the permission from cultural relic’s administrations, proceed with construction following the advice of cultural relic’s experts.

Operating period The pulse bag dust remover is used to remove dust, with the dust removal efficiency 99.7%, XP-type Environmental Environmental Atmosphere- calcium sulfite desulphurization technique will be Operating TSP Each time there is coal 16000 Monitoring Station Protection Bureau TSP SO adopted with a desulphurization efficiency of 90%; period SO arrived 2 of Benxi City of Benxi City 2 three boilers share one chimney with a height of 150m and the inside diameter at outlet being 2.4 m. In order to lower the noise from the plant, set up a separate house for blowers; install separate Once in the heating foundations or vibration-isolation measures for such Environmental Environmental season, or equipment as water pumps and blowers etc., which Operating Noise from the 5000 Monitoring Station Protection Bureau Noise anytime when a have a larger vibration; inlet and outlet connection use period heat source plant of Benxi City of Benxi City complain be soft hose joint; in development of the general layout received consideration should be given to reduce the noise level and stop the transmission of noise. The wastewater from soft water processing, blower cooling and boilers should be used for slag washing; Environmental Environmental domestic sewage, after treated in septic tanks, will be Operating COD Wastewater 2000 Monitoring Station Protection Bureau Once a month discharged into municipal sewers together with period SS of Benxi City of Benxi City wastewater from equipment washing , and ultimately into municipal sewage plant. The solid wastes of this project mainly include the ash and slag from coal combustion in boilers as well as a Environmental Environmental small amount of domestic waste. Of them, ash and Operating Solid waste 2000 Monitoring Station Protection Bureau Solid waste Once a month slag will be comprehensively utilized for brick- period of Benxi City of Benxi City making, and the domestic waste will be transported to Benxi Municipal Landfill for disposal. 1. Select imported water pumps with high quality and Once in the heating low noise, the noise level is not more than 80dB Noise from the Environmental Environmental season, or (A) for each. Operating heat exchange 2000 Monitoring Station Protection Bureau Noise anytime when a 2. construct the shock-absorption foundation for period station of Benxi City of Benxi City complain be pumps, and install shock absorber to reduce noise received caused by vibration; the inlet and outlet of water Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring pumps is connected with rubber hose. Install another concrete foundation for water pump, and set shock absorber between the foundation and ground or between the foundation and walls so as to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted Phase Central Heating Project of Benxi Cityà Construction period 1Schedule reasonable construction time from 6:00 am-10:00 pm, construction in night is forbidden. 2 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in Once a week in the the bidding documents made by construction Environmental Construction Monitoring Station daytime or each time a Noise companies. 8000 Protection Bureau Noise period of Benxi City complain be received 3. Monitor noise levels on the environmental sensitive of Benxi City receptors and construction sites once week. 4Temporary noise barrier should be established around such sensitive receptors as hospitals, schools and residential areas. Height and structure of noise barrier should be designed to fit the site conditions 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry Environmental and windy weather. Construction Once a week in dry or Dust 14000 Construction unit Protection Bureau Dust 2. Set up closed fence not lower than the height of period gale whether of Benxi City stockpiled materials around the storage yard of building material. 3Each inlet and outlet of building sites shall be Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring provided with facilities to clean up dirt on wheels so that vehicles will not take dirt out of the building sites. 4Powder materials shall be transported by tankers or covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Environmental Domestic waste will be timely collected to Benxi Sanitation Two or three times Municipal Landfill; the spoils will be removed in Construction Solid waste 4000 Construction unit Administration of Solid waste during timely manner to places appointed by Benxi City period Benxi City dismantlement Government.

1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 2000 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Benxi City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant Cultural Affairs Cultural Construction Cultural Uninterrupted administration in case any cultural properties are 6000 Construction unit Bureau of Benxi property period property monitoring found during construction. The site of cultural City Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural relics institutions. 3. Go to cultural relic’s administration to apply for resuming work after the cultural relics are well dealt with. 4. After getting the permission from cultural relic’s administrations, proceed with construction following the advice of cultural relic’s experts. Operating period In Caitun Heat Source Plant, boilers will be equipped with pulse bag dust removers with a dust removal efficiency of 99.8%; in Xihu and Wolong Heat Source Plants boilers will be equipped with pulse bag dust removers with a dust removal efficiency over 99.7% In Caitun Heat Source Plant, flue gas will be desulphurized by means of lime stone combustion inside boilers to a desulphurization efficiency of 80%, in Xihu and Wolong Heat Source Plants, flue gas will Environmental Environmental Atmosphere- be desulphurized by means of XP-type calcium sulfite Operating TSP Each time there is coal 16000 Monitoring Station Protection Bureau TSP SO desulphurization technique to a desulphurization period SO arrived 2 of Benxi City of Benxi City 2 efficiency of 90%. Caitun Heat Source Plant will use an existing chimney with a height of 100m and inside diameter at outlet being 3.0 m. Xihu Heat Source Plant will use a chimney with a height of 150m and outlet inside diameter 3.0 m. Wolong Heat Source Plant works will use a chimney with a height of 150m and outlet inside diameter 2.4 m. In order to lower the noise from the plant, set up a separate house for blowers; install separate Environmental Environmental Once a week or any Noise from the foundations or vibration-isolation measures for such Operating 2000 Monitoring Station Protection Bureau Noise time a complain gas source station equipment as water pumps and blowers etc., which period of Benxi City of Benxi City be received have a larger vibration; inlet and outlet connection use soft hose joint; in development of the general layout Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring consideration should be given to reduce the noise level and stop the transmission of noise. The wastewater from soft water processing, blower cooling and boilers should be used for slag washing; Environmental Environmental domestic sewage, after treated in septic tanks, will be Operating COD Wastewater 4000 Monitoring Station Protection Bureau Once a month discharged into municipal sewers together with period SS of Benxi City of Benxi City wastewater from equipment washing , and ultimately into municipal sewage plant. The solid wastes of this project mainly include the ash and slag from coal combustion in boilers as well as a Environmental Environmental small amount of domestic waste. Of them, ash and Operating Solid waste 1000 Monitoring Station Protection Bureau Solid waste Once a month slag will be comprehensively utilized for brick- period of Benxi City of Benxi City making, and the domestic waste will be transported to Benxi Municipal Landfill for disposal. 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. Construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise caused by vibration; the inlet and outlet of water Once in the heating pumps is connected with rubber hose. Install Environmental Environmental season, or Noise from the another concrete foundation for water pump, and Operating 2000 Monitoring Station Protection Bureau Noise anytime when a heat exchange set shock absorber between the foundation and period of Benxi City of Benxi City complain be station ground or between the foundation and walls so as received to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted &HQWUDOÃ+HDWLQJÃ3URMHFWÃRIÃ

Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 500 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Huludao City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural relics institutions. Construction Cultural Uninterrupted 900 Construction unit Bureau of property 3. Go to cultural relics administration to apply for period property monitoring resuming work when the cultural relics are well Huludao City dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts. 5. The above contents shall be involved in the contract concluded with the construction unit. 1 The operators should be provided with proper protective gears before being allowed to remove Environmental Environmental and the asbestos. Construction monitoring station of Uninterrupted asbestos 2500 Yuan Protection Bureau Dust 2 Warning signs shall be installed on construction period Huludao city monitoring of Huludao City site. 3 Spray water continuously throughout the Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring process. 4 Operators shall wear dust masks and protective clothing before remove asbestos. 5 develop proper plan and adopt the method of removal of entire piece of asbestos . 6 Set up safety fence, to prevent public from the site. Appoint professional technicians to manage the operation on site. 7 The removed asbestos shall be collected into airtight bags, and then put into cement tanks dedicated for asbestos storage which will be sealed with cement. 8 Transported to a certified hazardous waste landfill for disposal.

Operating period The pulse bag dust remover is used to remove dust, with the dust removal efficiency 99.7%, XP-type Environmental Environmental Atmosphere- calcium sulfite desulphurization technique will be Operating TSP Each time there is coal 10000 Monitoring Station of Protection Bureau TSP SO adopted with a desulphurization efficiency of 90%; period SO arrived 2 Huludao City of Huludao City 2 three boilers share one chimney with a height of 130m and the inside diameter at outlet being 2.6 m. In order to lower the noise from the plant, set up a separate house for blowers; install separate Once in the heating foundations or vibration-isolation measures for such Environmental Environmental season, or equipment as water pumps and blowers etc., which Operating Noise from the 200 Monitoring Station of Protection Bureau Noise anytime when a have a larger vibration; inlet and outlet connection use period heat source plant Huludao City of Huludao City complain be soft hose joint; in development of the general layout received consideration should be given to reduce the noise level and stop the transmission of noise. The wastewater from soft water processing, blower cooling and boilers should be used for slag washing; Environmental Environmental domestic sewage, after treated in septic tanks, will be Operating COD Wastewater 5000 Monitoring Station of Protection Bureau Once a month discharged into municipal sewers together with period SS Huludao City of Huludao City wastewater from equipment washing , and ultimately into municipal sewage plant. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring All the ash and slag will be comprehensively utilized Environmental Environmental as the brick-making raw material; domestic waste will Operating Solid waste 500 Monitoring Station of Protection Bureau Solid waste Once a month be timely collected to Great Beilinggou Landfill for period Huludao City of Huludao City disposal. 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise caused by vibration; the inlet and outlet of water pumps is connected with rubber hose. Install Once in the heating

another concrete foundation for water pump, and Environmental Environmental season, or Noise from the Operating set shock absorber between the foundation and 500 Monitoring Station of Protection Bureau Noise anytime when a heat exchange period ground or between the foundation and walls so as Huludao City of Huludao City complain be station to eliminate the effect of low-frequency sound on received environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted Heating Network Construction for Heating Unit Expansion Project of Fushun Electric Generation Plant Construction period 1Schedule reasonable construction time from 6:00 am-10:00 pm, construction in night is forbidden. 2 select construction equipment with low noise; construction of pile foundation uses hydraulic pile driver, static pressure pile driver and holing pile Once a week in the driver; construction equipment is operated in the Environmental Environmental Construction daytime or each time a Noise central area of the site. 6000 Monitoring Station Protection Bureau Noise period complain be received of Fushun City of Fushun City 3 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in the bidding documents made by construction companies. 4 Follow up monitoring Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry and windy weather. 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of building material. 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels so that vehicles will not take dirt out of the Environmental Construction Once a week in dry or Dust 1000 Construction unit Protection Bureau Dust building sites. period gale whether 4Powder materials shall be transported by tankers or of Fushun City covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Domestic waste will be timely collected to Qiandian Environmental Domestic Waste Landfill in of Sanitation Two or three times Construction Solid waste Fushun city; the spoils will be timely transported 1000 Construction unit Administration of Solid waste during period toYanwu Waste Landfill in Wanhua district for Fushun City dismantlement disposal. 1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. Where the project needs to cross a road, the Bureau of Interruption of Interruption of construction should be carefully scheduled to limit Construction 500 Construction unit Communication of communi Once a week communication the maxima period of construction to 7 days. period Benxi City cation 3. Bulletin board shall be erected on the construction site, indicating the project contents, contractor’s name and the words “Please understand the inconveniences incurred from the construction”. In Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural relics institutions. Construction Cultural Uninterrupted 400 Construction unit Bureau of Fushun property 3. Go to cultural relics administration to apply for period property monitoring resuming work after the cultural relics are well City dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts. 5. The above contents shall be involved in the contract concluded with the construction unit. Operating period 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. Construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise caused by vibration; the inlet and outlet of water Once in the heating Noise from the pumps is connected with rubber hose. Install Environmental Environmental season, or Operating heat exchange another concrete foundation for water pump, and 500 Monitoring Station Protection Bureau Noise anytime when a period station set shock absorber between the foundation and of Fushun City of Fushun City complain be ground or between the foundation and walls so as received to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring standard after the above mitigati0n measures adopted

Central Heating Project of Benxi Iron & Steel Thermal Development Company Construction period 1Schedule reasonable construction time from 7:00 am-6:00 pm, construction in night is forbidden. 2 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in Once a week in the Environmental the bidding documents made by construction Construction daytime or each time a Noise 7000 Construction unit Protection Bureau Noise companies. period complain be received of Benxi City 3. Monitor noise levels on the environmental sensitive receptors and construction sites once week. 4Temporary noise barrier should be established around such sensitive receptors as hospitals, schools and residential areas. Height and structure of noise barrier should be designed to fit the site conditions 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry Environmental Construction Once a week in dry or Dust and windy weather. 6000 Construction unit Protection Bureau Dust period gale whether 2. Set up closed fence not lower than the height of of Benxi City stockpiled materials around the storage yard of building material. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels so that vehicles will not take dirt out of the building sites. 4Powder materials shall be transported by tankers or covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. Powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Environmental Domestic waste will be timely collected to Benxi Sanitation Two or three times Construction Solid waste Municipal Landfill; the spoils will be transported to 2000 Construction unit Administration of Solid waste during period places designated by the city government. Benxi City dismantlement

1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. Where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 2000 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Benxi City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. Cultural 1.Stop construction and inform relevant Construction Cultural Affairs Cultural Uninterrupted 4000 Construction unit property administration in case any cultural properties are period Bureau of Benxi property monitoring Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring found during construction. The site of cultural City relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural relics institutions. 3. Go to cultural relics administration to apply for resuming work after the cultural relics are well dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts 1 The operators should be provided with proper protective gears before being allowed to remove and the asbestos. 2 Warning signs shall be installed on construction site. 3 Spray water continuously throughout the process. 4 Operators shall wear dust masks and protective clothing before remove asbestos. Environmental 5 Develop proper plan and adopt the method of Environmental Construction monitoring station of Uninterrupted asbestos removal of entire piece of asbestos . 1500 Yuan Protection Bureau Dust period Benxi city monitoring of Benxi City 6 Set up safety fence, to prevent public from the site. Appoint professional technicians to manage the operation on site. 7 The removed asbestos shall be collected into airtight bags, and then put into cement tanks dedicated for asbestos storage which will be sealed with cement. 8 Transported to a certified hazardous waste landfill for disposal.

Operating period 1. Select imported water pumps with high quality and Environmental Environmental Once in the heating Operating Noise from the low noise, the noise level is not more than 80dB 2000 Monitoring Station Protection Bureau Noise season, or period pump station (A) for each. of Benxi City of Benxi City anytime when a Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 2. Construct the shock-absorption foundation for complain be pumps, and install shock absorber to reduce noise received caused by vibration; the inlet and outlet of water pumps is connected with rubber hose. Install another concrete foundation for water pump, and set shock absorber between the foundation and ground or between the foundation and walls so as to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted. Urban Central Heating Network Project of Yingkou Economic Development Zone Construction period 1Schedule reasonable construction time from 7:00 am-6:00 pm, construction in night is forbidden. 2 select construction equipment with low noise; construction of pile foundation uses hydraulic pile driver, static pressure pile driver and holing pile Once a week in the driver; construction equipment is operated in the Environmental Construction daytime or each time a Noise central area of the site. 6000 Construction unit Protection Bureau Noise period complain be received of Yingkou City 3 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in the bidding documents made by construction companies. 4 Follow up monitoring 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Environmental Increase watering frequency and amount in dry Construction Once a week in dry or Dust 1000 Construction unit Protection Bureau Dust period gale whether and windy weather. of Yingkou City 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring building material. 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels so that vehicles will not take dirt out of the building sites. 4Powder materials shall be transported by tankers or covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. Powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Environmental Domestic waste and construction waste will be timely Sanitation Two or three times Construction Solid waste collected to the Development Zone Landfill for 600 Construction unit Administration of Solid waste during period disposal.. Yingkou City dismantlement

1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. Where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 500 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Yingkou City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. Cultural 1. Stop construction and inform relevant Construction 400 Construction unit Cultural Affairs Cultural Uninterrupted Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring property administration in case any cultural properties are period Bureau of property monitoring found during construction. The site of cultural Yingkou City relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural relics institutions. 3. Go to cultural relics administration to apply for resuming work after the cultural relics are well dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts Operating period 1. Select imported water pumps with high quality and low noise, the noise level is not more than 80dB (A) for each. 2. Construct the shock-absorption foundation for pumps, and install shock absorber to reduce noise caused by vibration; the inlet and outlet of water pumps is connected with rubber hose. Install Once in the heating Noise from the another concrete foundation for water pump, and Environmental Environmental season, or Operating heat exchange set shock absorber between the foundation and 500 Monitoring Station Protection Bureau Noise anytime when a period station ground or between the foundation and walls so as of Yingkou City of Yingkou City complain be to eliminate the effect of low-frequency sound on received environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted. Heating network construction for the Central Heating Project of Huaneng in north of Yingkou Construction period 1Schedule reasonable construction time from 6:00 Environmental Once a week in the Construction Noise am-10:00 pm, construction in night is forbidden. 6000 Construction unit Protection Bureau Noise daytime or each time a period 2 select construction equipment with low noise; of Yingkou City complain be received Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring construction of pile foundation uses hydraulic pile driver, static pressure pile driver and holing pile driver; construction equipment is operated in the central area of the site. 3 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in the bidding documents for the contractors.. 4 Follow up monitoring 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry and windy weather. 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of building material. 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels so that vehicles will not take dirt out of the Environmental Construction Once a week in dry or Dust 1000 Construction unit Protection Bureau Dust building sites. period gale whether 4Powder materials shall be transported by tankers or of Yingkou City covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. Powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Environmental The domestic waste will be timely collected to a Sanitation Two or three times Construction Solid waste landfill 5 km to the northwest of the Yingkou city 1000 Construction unit Administration of Solid waste during period proper; the spoils will be timely transported to the Yingkou City dismantlement Coastal Industrial Development Base in Yingkou for Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring construction site filling. 1. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and without occupying traffic lanes . 2. Where the project needs to cross a road, the construction should be carefully scheduled to limit the maxima period of construction to 7 days. 3. Bulletin board shall be erected on the construction Bureau of Interruption of Interruption of Construction site, indicating the project contents, contractor’s 500 Construction unit Communication of communi Once a week communication period name and the words “Please understand the Yingkou City cation inconveniences incurred from the construction”. In addition, there should be a contact person and contact manner displayed on the board. 4. Build temporary bridge and set up construction baffle to assure pedestrians’ safety where the constructing site is near school or hospital. 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural Construction Cultural Uninterrupted 400 Construction unit Bureau of property relics institutions. period property monitoring 3. Go to cultural relics administration to apply for Yingkou City resuming work after the cultural relics are well dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts Operating period 1. Select imported water pumps with high quality and Once in the heating low noise, the noise level is not more than 80dB Environmental Environmental season, or Noise from the (A) for each. Operating 500 Monitoring Station Protection Bureau Noise anytime when a heat exchange 2. Construct the shock-absorption foundation for period of Yingkou City of Yingkou City complain be station pumps, and install shock absorber to reduce noise received caused by vibration; the inlet and outlet of water Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring pumps is connected with rubber hose. Install another concrete foundation for water pump, and set shock absorber between the foundation and ground or between the foundation and walls so as to eliminate the effect of low-frequency sound on environment. 3. It is necessary to set noise insulation enclosure whereas the noise level at the residential area around heat exchange station remains to exceed the standard after the above mitigati0n measures adopted. Reconstruction and Expansion Project for Gas Facilities of Yingkou City Construction period 1Schedule reasonable construction time from 7:00 am-6:00 pm, construction in night is forbidden. 2 select construction equipment with low noise; construction of pile foundation uses hydraulic pile driver, static pressure pile driver and holing pile Once a week in the Environmental Environmental driver; construction equipment is operated in the Construction daytime or each time a Noise 6000 Monitoring Station Protection Bureau Noise central area of the site. period complain be received of Yingkou City of Yingkou City 3 The noise of construction equipment must satisfy the requirements of Noise Limits for Construction Site (GB12523-90), which shall be incorporated in the bidding documents for the contractors.. 4 Follow up monitoring Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 1Establish watering system for dust suppression. Daily regular watering can prevent flying dust. Increase watering frequency and amount in dry and windy weather. 2. Set up closed fence not lower than the height of stockpiled materials around the storage yard of building material. 3Each inlet and outlet of building sites shall be provided with facilities to clean up dirt on wheels Construction unit so that vehicles will not take dirt out of the Environmental Construction Once a week in dry or Dust 120000 Protection Bureau Dust building sites. period Supervision gale whether of Yingkou City 4Powder materials shall be transported by tankers or company covered by tarpaulin during hauling. 5Temporary storehouse for powder materials shall be built within building sites, or cover powder materials with dustproof net. Powder materials are forbidden to pile in the open air. 6Transport out spoils in timely manner. It is not allowed to incinerate waste on building site. 7Set up fence around building sites to reduce the flying dust. Domestic waste will be timely collected for the Environmental disposal by the environmental sanitation departments Sanitation Two or three times Construction Solid waste of Yingkou city; the spoils will be hauled in timely Construction unit Administration of Solid waste during period manner to places designated by Yinkou city Yingkou City dismantlement government. The pipeline of the project will be constructed under pedestrian paths with the site being enclosed and Bureau of Interruption of Interruption of without occupying traffic lanes . Construction Construction unit Communication of communi Once a week communication 2. Where the project needs to cross a road, the period Yingkou City cation construction should be carefully scheduled to limit the maxima period of construction to 4 days. Environmental Period of Expense on Monitoring Monitorin Frequency of Mitigation measure Supervisor impact execution monitoring unit g item monitoring 1.Stop construction and inform relevant administration in case any cultural properties are found during construction. The site of cultural relics shall be properly preserved without any artificial articles to be removed. 2. Wait for identification and treatment by cultural Cultural Affairs Cultural relics institutions. Construction Cultural Uninterrupted Construction unit Bureau of property 3. Go to cultural relics administration to apply for period property monitoring resuming work after the cultural relics are well Yingkou City dealt with. 4. After getting the permission from cultural relics administrations, proceed with construction following the advice of cultural relics experts 5. The above contents shall be involved in the contract concluded with the construction unit. Operating period After being treated to the standard through integrated domestic sewage treatment facilities, part of domestic Environmental Environmental Operating COD Wastewater sewage will be used for water spray to reduce dust , 6000 Monitoring Station of Protection Bureau Once a month period SS with the remaining to be discharged into municipal Yingkou City of Yingkou City sewers.,

In the operating period, the produced solid waste, Environmental Environmental consisting of filter cores which are replaced on a Operating Solid waste 1000 Monitoring Station of Protection Bureau Solid waste Once a month regular basis in the three newly built voltage- period Yingkou City of Yingkou City regulation stations, will be collected by the environmental sanitation departments for disposal. In order to lower the noise from the plant, set up a separate house for blowers; install separate Once in the heating foundations or vibration-isolation measures for such Environmental Environmental season, or Noise from the equipment as water pumps and blowers etc., which Operating 3000 Monitoring Station of Protection Bureau Noise anytime when a gas source plant have a larger vibration; inlet and outlet connection use period Yingkou City of Yingkou City complain be soft hose joint; in development of the general layout received consideration should be given to reduce the noise level and stop the transmission of noise.

6.2 Monitoring Institutional Arrangement

To bring the adverse environmental impacts under effective control, implementation of overall project should be supervised closely and scientifically, in conjunction with good environmental management and monitoring plan. Environmental monitoring organizations for these projects are showed in this figure.

6.2.1 Environmental Monitoring Organizations

State Environmental World Bank Protection Administration of

Liaoning Provincial Development and Reform

Liaoning Provincial Environmental Protection Office for Projects of Foreign

Contractor Construction Bureau of Sub-project Sub-project of Bureau Local Environmental Company Environmental EnvironmentalProtection project StationSub-of Monitoring EnvironmentalLocal Sub

- project

Monitoring StationMonitoring Supervision

Supervision institutions Supervision Supervision during construction institutions period during operating

Fig. 6-1 Environmental Monitoring Institutions

Responsibilities of environmental monitoring organizations include: Environmental monitoring during construction stage, is the responsibility of construction contractors and monitoring station of each city, supervised by environmental supervision companies, managed by the Office for Projects of Foreign Capital, a subsidiary of Liaoning Provincial Development and Reform Commission which shall answer for the World Bank experts. Environmental monitoring during operating stage is in the charge of project owners and monitoring station of each city, managed by the Office for Projects of Foreign Capital, a subsidiary of Liaoning Provincial Development and Reform Commission which is the PMO of the project. Sub-project environmental monitoring for the construction and operating stages shall be supervised by the local environmental protection bureau which is responsible for the state environmental protection administration or Liaoning provincial environmental protection bureau.

6.2.2 Monitoring Reports Types and Contents

Monitoring Reports include the reports for construction stage and operating stage. In the reports, the monitoring points, sampling timing, monitoring items should be indicated; the monitoring results should be analyzed and assessed against the relevant standards. Assess the execution of environmental mitigation measures according to the monitoring outcome. Discuss with environmental supervision institutions or environmental impact assessment teams in the regard of improving or changing the unsatisfactory mitigation measures.

6.2.3 Submission Time and Acceptance Units for the Monitoring Reports

1 Monitoring reports submission For construction period, environmental monitoring program shall be conducted once or twice regarding the lenghth of construction and construction activities with a periodical monitoring report submitted accordingly, and a general report shall be submitted after the construction is completed. For each operating period, quarterly report shall be submitted and an annual report shall be submitted for each year. 2 Accepting units for the monitoring reports Monitoring reports are to be submitted to the environmental protection departments such as Liaoning Provincial Environmental Protection Bureau, Anshan Environmental Protection Bureau, Fushun Environmental Protection Bureau, Benxi Environmental Protection Bureau, Yingkou Environmental Protection Bureau, Liaoyang Environmental Protection Bureau, and Huludao Environmental Protection Bureau; as well as by project owners and their superior departments, and the World Bank Departments concerned. Project owners include Haicheng Urban Construction Investment Co., Ltd, Fushun Power Plant Co., Ltd., Benxi Heat Supply General Company, Development and Reformation Commission of Yingkou Economic and Technical Development Zone, Yingkou Heating Co., Ltd., Water Heating Center of Yangjiazhangzi Economic Development Zone, Yingkou Coal Gas Company, Gongchangling Heating Center of Liaoyang City, and Dashiqiao Urban Construction Investment Co., Ltd.

6.2.4 Feedback for Monitoring Reports

After the relevant agencies received the reports, they shall offer their feedbacks within one month. Within feedback period, the relevant agencies should analyze and assess the report contents; make sure whether the environmental mitigation measures are reasonable and effective; make a schedule for their next-step work and suggest the corresponding requirements. Within feedback period, the relevant agencies should give proposals to improve the monitoring plan, environmental mitigation measures and adjustment plans (if any). 7 Strengthening the Environmental Protection Management Organization

To make this project operates smoothly and efficiently, it is essential to conduct trainings for all staff, especially the contractors, in terms of environmental protection knowledge and skills, to let them be fully aware of the significance of the proposed project and its operation; besides, different trainings with different emphases shall be given for personnel on all posts and varied training approaches shall be adopted in accordance with the management levels and the post importance in environmental protection. Specific training programs for all sub-projects are showed as in table 7-1.

Table 7-1 Training Program for Environmental Protection Technical Personnel Training expenses Number of Time Projects Participants Training content Approaches (10,000 Yuan) Participants (day) Local Currency. Basic Theory of Environment and Environmental protection staff Monitoring Methods, Monitoring 6 2 3 during construction period Report Compilation, Post Training

Environmental Laws and Environmental supervisors Regulations, Construction planning, 3 2 10 during construction period Environmental Monitoring Rules and Standards

Codes for environmental protection 2 1 1.5 Techniques of the Control and 2 1 1.5 Monitoring of Pump Station Noise Domestic Central Heating Project in training the North of Yong’an Road Tiedong, Haicheng City Techniques of Monitoring and Control of Ambient Air 2 2 2 Environmental protection staff Techniques of Monitoring and during operating period Control of Ambient Noise

The Daily Maintenance of XP-type Calcium Sulfite Technique The Daily Maintenance of Pulse Bag 3 2 4 Dust Removers Enclosure of Coal Yard and Slag Yard Sub-total 22

Central Heating Project in Basic Theory of Environment and Domestic Environmental protection staff Gongchangling District of Monitoring Methods, Monitoring training 10 2 5 during construction period Liaoyang City Report Compilation, Post Training Environmental Laws and 1-2 participants for each Environmental supervision Regulations, Construction planning, construction section and 3 engineers during operating Environmental Monitoring Rules and 2-4 from construction period and environmental Standards side 13 administrators during Environment Air Monitoring and construction period Control Technique, Noise 6 4 Monitoring and Control Technique Sub-total - - - - 18 Basic Theory of Environment and Constructors, and Monitoring Methods, Monitoring 8 2 4 environmental protection staff Report Compilation, Post Training Environmental Laws and Regulations, Construction Planning, 4 2 Environmental Monitoring Rules and Standards Environmental supervisors 12 during construction period Environment Air Monitoring and Control Technique, Noise 2 1 Monitoring and Control Technique

Central Heating Project in Codes for environmental protection 2 1 1.5 Dashiqiao District in Domestic Yingkou City Techniques of the Control and training 2 2 2 Monitoring of Pump Station Noise Techniques of Monitoring and Control of Ambient Air Environmental protection staff Techniques of Monitoring and during operating period Control of Ambient Noise The Daily Maintenance of XP-type 4 2 5 Calcium Sulfite Technique The Daily Maintenance of Pulse Bag Dust Removers Enclosure of Coal Yard and Slag Yard Sub-total - - - - 24.5 Basic Theory of Environment and Monitoring Methods, Monitoring Report Compilation, Post Training. Environmental protection staff Risk Analysis and Emergency 8 2 4 During construction period Measures of Pollution Accidents during Construction Period Environmental Protection Points and Precautions in Construction 1-2 participants each construction section and 3 Environmental Laws and 2-4 from construction Regulations, Construction planning, side Environmental Monitoring Rules and Standards Environmental Supervision Environment Air Monitoring and Engineers during construction Control Technique, Noise period and environmental 4 Monitoring and Control Technique managers during operating Domestic Points of Engineering Environmental Central Heating Project in period training 6 4 Nanfen District Monitoring, Management of Information Collection Construction of Environmental Facilities

The Daily Operation Management of Bag Dust Removers and Desulphurizer Thionizer The Monitoring Plan and Monitoring Environmental staff 2 3 2 Technique of Wastewater and Waste Gas Noise Control Technique within Plant Area

Sub-total - - - - 10 Basic Theory of Environment and Environmental protection staff Monitoring Methods, Monitoring 6 2 3 during construction period Report Compilation, Post Training

Environmental Laws and Environmental supervisors Regulations, Construction planning, 3 2 8 during construction period Environmental Monitoring Rules and Standards

Codes for environmental protection 2 1 1.5 Domestic Techniques of the Control and Central Heating Project in training 2 1 1.5 Yangjiazhangzi Mining Area Monitoring of Pump Station Noise Techniques of Monitoring and Control of Ambient Air 2 2 2 Environmental protection staff Techniques of Monitoring and during operating period Control of Ambient Noise The Daily Maintenance of XP-type Calcium Sulfite Technique The Daily Maintenance of Pulse Bag 3 2 4 Dust Removers Enclosure of Coal Yard and Slag Yard Sub-total - - - - 20 Basic Theory of Environment and Environmental protection staff Monitoring Methods, Monitoring 20 2 10 during construction period Report Compilation, Post Training Environmental Laws and 2-4 persons for each Environmental supervision Regulations, Construction planning, Domestic construction section and 3 PhaseCentral Heating engineers, environmental Environmental Monitoring Rules and training 4-8 persons from Project of Benxi City administrators from Standards construction side 26 construction side Environment Air Monitoring and Control Technique, Noise 12 4 Monitoring and Control Technique Sub-total - - - - 36 Heating Network Basic Theory of Environment and Domestic Environmental protection staff Construction of Thermal Monitoring Methods, Monitoring training 10 2 4 during construction period Unit Expansion Project for Report Compilation, Post Training Fushun Electric Generation Environmental Laws and Environmental supervisors Plant Regulations, Construction planning, during construction period 4 3 10 Environmental Monitoring Rules and during operation period Standards Environmental Laws and Environmental protection staff Regulations, Monitoring and Control 4 2 2 during operating period Technique of Pump Station Noise Sub-total - - - - 16 Environmental Fundamentals and Monitoring Methods, Monitoring Report Compilation, Post Training. Environmental protection staff Risk analysis and Emergency 10 2 5 during construction period Measures of Pollution Accidents during Construction Period Central Heating Network Environmental Protection Points and Domestic Construction for Benxi Iron Precautions in Construction training & Steel Heating Environmental Laws and 1-2 persons for each Regulations, Construction Planning, construction section and Development Company 3 Environmental Monitoring Rules and 2-4 persons from Environmental supervisors Standards construction side 5 during construction period Codes for Environmental Protection Control and Monitoring Techniques 6 4 of Pump Station Noise Sub-total - - - - 10 Central Heating Network Basic Theory of Environment and Environmental protection staff Project in Yingkou Monitoring Methods, Monitoring 15 2 5 during construction period Economic Development Report Compilation, Post Training Zone Environmental Laws and Regulations, Construction planning, Domestic 4 2 Supervision Engineers for Environmental Monitoring Rules and training environmental protection Standards

during construction period and 10 managers during operation period Noise monitoring and control 4 2 techniques Sub-total - - - - 15 Basic Theory of Environment and Environmental protection staff Monitoring Methods, Monitoring 7 2 2.5 during construction period Report Compilation, Post Training

Environmental supervision Environmental Laws and Domestic engineers during construction Regulations, Construction planning, training Huaneng Central Heating period and environmental 3 2 7 Environmental Monitoring Rules and Project in North of Yingkou managers during operating Standards period Environmental Laws and Environmental protection staff Regulations Monitoring and Control 4 2 2 during operating period Technique of Pump Stations Sub-total - - - - 11.5 Basic Theory of Environment and Environmental protection staff Monitoring Methods, Monitoring 10 2 2 during construction period Report Compilation, Post Training Environmental Laws and 1-2 persons for each Domestic Supervision Engineers for Regulations, Construction planning, construction section and Reconstruction and training 3 environmental protection Environmental Monitoring Rules and 2-4 from construction Expansion Project for Gas Facilities of Yingkou City during construction period and Standards side 2 managers during operation Environment Air Monitoring and period Controlling Technique, Noise 6 4 Monitoring and Control Technique Sub-total - - - - 4 Total - - - 187 8 Environmental Management Plan Investment

Table 8-1 presents the total expenses for all sub-projects environmental management plans, including monitoring plan expenses, management fees and labor costs. For details, please refer to the environmental management plans for all sub-projects. Table 8-1 Investments for Environmental Management One year’s construction Three years’ operating budget budget Projects RMB RMB USD USD (10,000 (10,000 (10,000) (10,000) Yuan) Yuan) Central Heating Project in the North of 36.42 4.86 114.72 15.30 Yong’an Road, Tiedong, Haicheng City Central Heating Project in Gongchangling 37.45 5.00 138.6 18.48 District of Liaoyang City Central Heating Project in Dashiqiao 5.27 122.0 16.27 District of Yingkou City 39.5 Central Heating Project in Nanfen District 36 4.8 126 16.8

Central Heating Project in Yangjiazhangzi 29.58 3.95 111.72 14.90 Mining Area

Phase Central Heating Project of 74.9 Benxi City 9.99 277.2 36.96 Heating Network Construction of Thermal Unit Expansion Project for 39.13 5.22 118.3 15.78 Fushun Electric Generation Plant Central Heating Modification Project for Benxi Iron & Steel Heating Development 54 7.20 180 24 Company Central Heating Network Project in 47 6.27 162 21.6 Yingkou Economic Development Zone Huaneng Central Heating Project in 39.09 5.21 132.48 17.67 North Part of Yingkou Reconstruction and Expansion Project for 38.6 5.15 68.7 9.16 Gas Facilities of Yingkou City Total 471.67 62.92 1551.72 206.92

9 Public Consultation and Information Disclosure 9.1 Public Consultation

Liaoning Government intends to apply for a loan from World Bank for the LMC3. According to the requirements of China environmental protection laws and management regulations, as well as that of World Bank OP4.01 Environmental Assessment shall be accompanied with public consultation in the survey, taking advices and feedback on the construction project schemes from experts, administrative departments, affected regions, units and residents. Pubic consultation in the survey shall be conducted in the principle of pertinence so as to achieve impartiality and avoid the inquirers’ subjectivity and personal feelings. In accordance with the local conditions, this public consultation shall be conducted in two forms, namely through issue of public consultation investigation table and holding of public meeting. Public consultation: in accordance with the local features, “Public Consultation Questionnaire” has been issued to the institutions, residents' committee and residents around the project location, to explain the project environmental, social and economic efficiency, the advantageous and adverse impact on regional environmental quality and living conditions, and the proposed measures for mitigating the adverse impact. Public meeting: the project contents have been presented, to take advices from all parties on the environmental protection measures and potential environmental impacts through discussion, consultation, so as to improve environmental assessment work. “Public consultation” has been organized by each sub-project in each city, and environmental assessment consultant of each sub-project cooperated with project owners in seeking advices from the residents in project locations in the form of issuing advice form, public meeting and interview. Five sub-projects that were requested to prepare the full environmental assessment reports have initiated public consultation twice, through questionnaire survey and the public hearing; the other five sub-projects that were requested to prepare the environmental assessment form have conducted public consultation through questionnaire survey. Details are showed in table 9-1. The public representatives consisting of people from all walks of life, with different education background and professions, including government and institution staff, teachers, students, technical personnel, accountants, workers aging from 18 to 70 years old. Public consultation of each sub-project is showed as follows:

Table 9-1 Public Consultation Consultation Consulted Policy Sub-projects Time Consulted Persons Consulting personnel Problems and feedback behavior places Requirements Residents in Haicheng city, Project owners and Some residents are concerned Environmental Local 24/01/2007 Questionnaire Xiai, Sanli, Xiaoluobao, environmental about that the construction of assessment Central Heating Project residential area Tianshuigou and so forth assessment staffs heat source plant will impact policy in the North of Yong’an Resident Representatives and Haicheng local air quality. People residing OP4.01of Road Tiedong, local government officials from Urban Project owners and along the pipeline network World Bank and Haicheng City 08/04/2007 Hearing Haicheng city, Xiai, Sanli, Construction environmental consider that the construction of the requirement

Xiaoluobao, Tianshuigou and so Investment Co., assessment staff pipeline network will affect their of State forth Ltd. travel. Environmental Residents from community of Project owners and Some residents are concerned Protection Local 20/01/2007 Questionnaire Ansheng, Youji, Tuanshan, environmental that the construction of heat Administration of residential area Sujia, Sunjiazhai and so forth assessment staff source plant will impact local air China, and the quality. People residing along Regulation for Central Heating Project the pipeline network consider Public in Gongchangling that the construction of pipeline Consultation in District of Liaoyang Resident Representatives and Liaoyang Project owners and network will affect their travel. the City local government officials from Gongchangling 14/04/2007 Hearing environmental A few of residents show their Environmental community of Ansheng, Youji, Heating Co., assessment staff dissatisfaction with the Impact Tuanshan, Sujia and Sunjiazhai Ltd. construction of heat exchange Assessment station.

Residents from the villages of Xinmintun, Tielingcun, Project owners and Local 22/01/2007 Questionnaire Hepingcun, Wangjiacun, environmental residential area Dongjiangcun, Chenjiacun, and assessment staff People residing along the Central Heating Project Shengshuicun pipeline network consider that in Dashiqiao District of Resident Representatives and the construction of pipeline Yingkou City local government officials from Dashiqiao Project owners and network will affect their travel the villages of Xinmintun, Development 25/04/2007 Hearing environmental Tielingcun, Hepingcun, and Reform assessment staff Wangjiacun, Dongjiangcun, Commission Chenjiacun and Shengshuicun Residents from Nanshan Project owners and Residents suppose that the heat Central Heating Project Local 15/04/2007 Questionnaire Residential Area, Xujiabaozi environmental source plant can replace small in Nanfen District residential area and Shuaiwanzi assessment staff boilers to improve air quality, Resident Representatives and but they are afraid the pipeline Nanfen Heat Project owners and local government officials from construction will affect their 07/07/2007 Hearing Power environmental Nanshan Residential Area, travel. Company assessment staff Xujiabaozi and Shuaiwanzi Residents from villages of Yangjiazhangzi, Xiafuergou, Project owners and Local 18/07/2007 Questionnaire Heiyugou, Xiaomajiagou, environmental Some residents are concerned residential area Gaoheshanggou, and assessment staff that the construction of heat Central Heating Project Changmaocun etc. source plant will impact local air in Yangjiazhangzi Resident Representatives and Government of quality. A few of residents show Diggings local government officials from Yangjiazhangzi Project owners and their dissatisfaction with the villages of Yangjiazhangzi, Economic environmental construction of nearby heat 12/08/2007 Hearing Xiafuergou, Heiyugou, Development assessment staff exchange station. Xiaomajiagou, Gaoheshanggou, Area and Changmaocun etc. Some residents are concerned Residents in Caitun, Wolong Project owners and Local that the construction of heat 11/10/2007 Questionnaire and environmental Phase Central residential area source plant will impact local air Xihu. assessment staff Heating Project of quality. A few of residents show Benxi City Residents in Caitun, Wolong Benxi Heat Project owners and their dissatisfaction with the 28/10/2007 Hearing and Supply environmental construction of nearby heat Xihu. Corporation assessment staff exchange station. Heating Network Construction of Project owners and People residing along the Residential area along the Thermal Unit Local environmental pipeline network consider that 10/07/2006 Questionnaire pipeline and that nearby heat Expansion Project for residential area assessment staff the construction of pipeline exchange station Fushun Electric network will affect their travel Generation Plant Central Heating People residing along the Project owners and Modification Project for Residential area along the Inside Benxi pipeline network hope that the environmental Benxi Iron & Steel 16/04/2007 Questionnaire pipeline and that nearby heat Iron & Steel construction period can be assessment staff Heating Development exchange station Factory shortened by the construction

Company unit Local people expect that the Central Heating Project owners and Residential area along the heating network can be laid as Network Project in Local environmental 10/04/2007 Questionnaire pipeline and that nearby heat fast as possible so that the Yingkou Economic residential area assessment staff exchange station centralized heating can be Development Zone realized soon. Project owners and Local residents show their Huaneng Central Residential area along the Local environmental concerns that the pipeline Heating Project in 15/07/2007 Questionnaire pipeline and that nearby heat residential area assessment staff construction will affect their North Part of Yingkou exchange station travel. Rehabilitation and Specially protected hospitals, Hospital, Project owners and Residents hope the construction Expansion Project for schools, kindergartens, and school, environmental unit can make the construction 15/03/2007 Questionnaire Gas Facilities of residential area at both sides of kindergarten, assessment staff period as short as they can, Yingkou City the gas pipeline residential area avoiding the construction risks. Most residents’ suggestions and opinions on the proposed project have been reflected in the public surveyed result. According to the results of questionnaires, and hearings, the majority of people support these projects. The public support rate is showed as follows: Table 9-2 Public Supports for Each Sub-project Sub-projects Support rate Participants Central Heating Project in the North of Yong’an 100% Local people Road Tiedong, Haicheng City Central Heating Project in Gongchangling District in 97.5% Local people Liaoyang City Central Heating Project in Dashiqiao District in 100 Local people Yingkou City Central Heating Project in Nanfen District of Benxi 100% Local people City Central Heating Project in 100 Local people Yangjiazhangzi Diggings Phase Central Heating Project of Benxi City 100 Local people Heating Network Construction of Thermal Unit Expansion Project for 100 Local people Fushun Electric Generation Plant Central Heating Modification Project for Benxi Iron & Steel 100% Local people Heating Development Company Central Heating Network Project in Yingkou 100 Local people Economic Development Zone Huaneng Central Heating Project in North Part of 97.8 Local people Yingkou Rehabilitation and Expansion Project for Gas 97.4 Local people Facilities of Yingkou City

9.2 Information Disclosure

The survey results and reports on environmental assessment of this project will conform rigidly to the publicity and notification system.

Draft reports of environmental assessment and EMP for each sub-project have been submitted to and kept in Sub-Project Management Office, Liaoning Provincial Office for Foreign Capital funded (World Bank Loan) Projects, and Liaoning Academy of Environmental Sciences. The public will have a free access to these reports. In addition, the drafts shall be released on the internet to encourage the public to read and give their feedbacks. All sub-project owners will issue an announcement on the local newspaper of each sub-project city, informing the public how to acquire the aforementioned information and where to give their feedback.

Through regular check of the feedback box and follow-up visit to the place where materials are kept, no public feedback message has been received in the mail box or opinion book so far. According to the feedback from staff working in the place where materials are kept, it is deemed that, the public are supportive of these projects. Table 9-3 is concerned with the disclosed information on all sub-projects. Sub-project Publicity site of Date of Location of Date of No. Documents title environmental management Disclosur Disclosure Table 9-3 Information Disclosure of All Sub-projects Document plan e Foreign Capital Project http://www.laes. Office of Liaoning Province com.cn/zixun/hu Environmental Management Plan Development and Reform anping/gongshi/ for Central Heating Project in the Central Heating Commission gongshi.asp North of Yong’an Road Tiedong, Project in the North of Liaoning Academy of Haicheng City; 15/08/200 18/09/20 1 Yong’an Road Environmental Sciences Environmental Impact Report of 7 07 Tiedong, Haicheng Environmental Management Central Heating Project in the City Office of Haicheng Urban North of Yong’an Road Tiedong, Construction Investment Co., Haicheng City Ltd

Environmental Management Plan Foreign Capital Project http://www.laes. for Central Heating Project in Office of Liaoning Province com.cn/zixun/hu Central Heating Gongchangling District of Development and Reform anping/gongshi/ Project in Liaoyang City; Commission gongshi.asp 15/08/200 18/09/20 2 Gongchangling Environmental Impact Report of Liaoning Academy of 7 07 District of Liaoyang Central Heating Project in Environmental Sciences City Gongchangling District of Environmental Management Liaoyang City Office of Gongchangling Heating Co., Ltd. http://www.laes. Foreign Capital Project com.cn/zixun/hu Environmental Management Plan Office of Liaoning Province anping/gongshi/ for Central Heating Project in Development and Reform gongshi.asp Central Heating Dashiqiao District of Yingkou Commission Project in Dashiqiao City; Liaoning Academy of 15/08/200 18/09/20 3 District of Yingkou Environmental Impact Report of Environmental Sciences 7 07 City Central Heating Project in Environmental Management Dashiqiao District of Yingkou City Office of Dashiqiao Urban Construction Investment Co., Ltd

Environmental Management Plan http://www.laes. for Central Heating Project of com.cn/zixun/hu Central Heating Nanfen District 15/08/200 18/09/20 anping/gongshi/ 4 Project of Nanfen Environmental Impact Report of 7 07 gongshi.asp District Central Heating Project of Foreign Capital Project Nanfen District Office of Liaoning Province

Development and Reform Environmental Management Plan http://www.laes. Commission com.cn/zixun/hu

10 Conclusion 10.1 Need of the Project

To enhance the construction of urban infrastructures and improve the heating service, tackle the problem of city environmental pollutions and increase people’s living standard, it is planned to use the World Bank loan to construct the LMC3. This project has been included in the Chinese Government program for utilizing the loan from World Bank in 2006. Through discussion, screening, and the identification by the Mission of World Bank, the proposed LMC3 consists primarily of 6 cities, they are Anshan, Fushun, Benxi, Liaoyang, Yingkou and Huludao, and 11 sub-projects with a total investment of 2.79945 billion Yuan.

10.2 Key Environmental Issues

1 New construction/upgrading project of heat supply plant zConstruction stage Key Environmental Issues: Noise, dust, waste water from construction, domestic and building wastes; noise, dust and traffic interruptions resulted from pipeline network construction. Mitigation measures: optimize the construction schedule, adopt the proper construction technique, water spray on construction site to reduce the dust, dump domestic and building wastes in specified time to designated sites. Please see sub- project management plan for the detailed mitigation measures. z Operating period Key environmental issues: Dust, smoke, sulfur dioxide, ash and noise etc from hot water boilers. Mitigation measures: Bag-house dust remover, XP-type calcium sulfite desulphurization technique, comprehensive utilization of all the ash and slag, noise- reduction of high-noise equipment, boiler pollutant emission treated to the standard of state or local emission standard. 2 Pipeline network/ heat exchange station project zConstruction stage Key environmental issues: noise from heat exchange station construction, dust, waste water, domestic and building wastes; noise, dust and traffic interruptions resulted from pipeline network construction. Mitigation measures: optimize the construction schedule, adopt proper construction technique, water spray on construction site to reduce the dust, dump domestic and building wastes in specified time to designated sites. Please see sub-project management plan for the mitigation measures. z Operating period Key environmental issues: noise from heat exchange station Mitigation measures: Reduce equipments noise to the degree as specified in the state or local standard. 3 Gas supply project zConstruction stage Key environmental issues: Construction noise of gas supply factory, dust, building waste water, domestic and building wastes; noise, dust and traffic interruptions resulted from pipeline network construction. Mitigation measures: optimize the construction schedule; adopt the proper construction technique, water spray on construction site to reduce the dust, dump domestic and building wastes in specified time to designated sites. Please see sub- project management plan for the mitigation measures. z Operating period Key environmental issues: pollutants emitted from boilers of gas supply plant, waste water and noise. Mitigation measures: ceramic multiple—tube dust collector, buried waster water treatment facilities, noise reduction of machines, and all pollutants emission be treated to the state or local standards. 10. 3 Positive Environmental Impacts

After this project become operational, 317small boilers in all heating districts will be replaced, and the pollutants emitted from these small boilers such as TSP and SO2 will be reduced by 11659.09 t/a, and 8934.98t/a t/a respectively. After this project become operational, a large number of small boilers will be closed, the low and small stacks will be demolished. As a result, the urban air quality, and people’s living conditions will be improved, hence contributing to urban development. At present, all cities in Liaoning province are suffering from severe atmospheric pollution resulting from coal burning. According to the survey, a significant increase of respiratory diseases can be found in all cities in winter and spring, for which the primary reason is coal burning boilers that produce more particles can be inhaled and sulfur dioxide during heating period. Centralized heating project is the basic solution for saving energy, improving environment and decreasing the emission of particles can be inhaled and sulfur dioxide. Therefore, when this project is put into use, with closing down of small boilers, ambient air quality in all regions can be improved and the rate of respiratory diseases can be reduced significantly.