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Public Disclosure Authorized World Bank: Gansu Revitalization and Innovation Project Environmental Impact Assessment For Component 2: Urban-Rural Regeneration Public Disclosure Authorized Public Disclosure Authorized Entrusted by Gansu Provincial Culture and Tourism Department Prepared by Lanzhou University Applied Technology Research Institute Co. Ltd. Public Disclosure Authorized April 2019 Table of Contents I Overview ................................................................................................................... 1 1.1 Project Background and Introduction ............................................................................... 1 1.2 EIA Category, Scope and Indicators ............................................................................... 10 1.3 Relevant Laws and Regulations ...................................................................................... 12 1.4 Relevance to Domestic Plans .......................................................................................... 15 1.5 Function Zoning .............................................................................................................. 21 1.6 Applicable Standards....................................................................................................... 24 II Project Description ................................................................................................ 30 2.1 Project Composition and Location .................................................................................. 30 2.2 Descriptions of the Subprojects ...................................................................................... 32 III. Environmental and Social Baseline .................................................................... 42 3.1 General Conditions in Gansu .......................................................................................... 42 3.2 Physical Settings ............................................................................................................. 44 3.3 Environment Quality Condition ...................................................................................... 53 3.4 Environmental Sensitive Areas/Receptors ...................................................................... 63 3.5 Physical Cultural Resources (PCRs) ............................................................................... 66 3.6 Social and Economic Conditions .................................................................................... 68 3.7 Project Related Facilities ................................................................................................ 70 IV. Analysis of Alternatives........................................................................................ 74 4.1 With and Without the Project .......................................................................................... 74 4.2 Alternatives of Project Sites ............................................................................................ 75 4.3 Alternatives of Pollution Control Schemes ..................................................................... 78 4.4 Other Alternatives ........................................................................................................... 87 4.5 EIA Recommendations for Project Design Optimization ............................................... 89 V Environmental Impacts and Mitigation Measures during Construction ............. 91 5.1 Generic Environmental Impacts and Mitigation Measures ............................................. 91 5.2 Specific Environmental Impacts and Mitigation Measures ............................................. 96 5.3 Social Impacts and Mitigation Measures ...................................................................... 103 VI. Environmental Impacts and Mitigation Measures during Operation ............. 107 6.1 Environmental and Social Benefits ............................................................................... 107 6.2 Generic Impacts and Mitigation Measures .................................................................... 107 6.3 Specific Impacts and Mitigation Measures ................................................................... 113 VII Resettlement & Social Impacts Assessment ..................................................... 121 7.1 Resettlement Impacts Assessment and Mitigation Measures ........................................ 121 7.2 Social Impact Assessment and Mitigation Measures .................................................... 127 7.3 Social Action Plan ......................................................................................................... 133 VIII Cumulative Impact Assessment ...................................................................... 137 8.1 Characteristics of Cumulative Impacts for the Project .................................................. 137 8.2 CIA Methodology ......................................................................................................... 137 8.3 Subprojects Screening for CIA ..................................................................................... 138 8.4 CIA for Qin'an Dadiwan Subproject ............................................................................. 139 8.5 CIA for Lintao Majiayao Subproject ............................................................................. 141 8.6 CIA for Zhangye Subproject ......................................................................................... 144 8.7 Conclusions of CIA ....................................................................................................... 147 IX Information Disclosure and Public Consultation .............................................. 149 9.1 Purpose of Public Consultation and Stakeholders Identification .................................. 149 9.2 The First Round of Public Consultation ........................................................................ 151 9.3 Second-Round Public Consultation .............................................................................. 166 X. Environmental & Social Management Plan ....................................................... 179 10.1 Institutional Arrangement and Responsibilities .......................................................... 179 10.2 Environental and Social Impacts and Mitigation Measures ........................................ 180 10.3 Environmental Monitoring .......................................................................................... 181 10.4 Training Plan ............................................................................................................... 181 10.5 Supervision and Reporting System ............................................................................. 182 10.6 Cost Estimate on Environmental Management ........................................................... 186 XI. Conclusions ........................................................................................................ 188 Figures ..................................................................................................................... 189 Tables ....................................................................................................................... 201 I Overview 1.1 Project Background and Introduction Gansu Province exemplifies the challenge of spatial inequality in China. Despite Gansu’s rich natural, cultural, and historical resources, it is China’s poorest province and significantly lags other provinces on most economic and social indicators. Gansu’s per capita income is less than half the national average and a mere 23 percent of that in leading provinces. Measured by per capita disposable income and access to and quality of infrastructure, Gansu also ranks last among all the provinces. About 65 percent of Gansu’s population belongs to the national bottom 40 percent group, compared with only 9.21 percent of Beijing’s population. Agricultural development alone has proved inadequate to lift Gansu’s poor out of poverty. The once-powerful heavy industries are declining. The province is turning to the service sectors to drive its economic growth but so far has had only limited success. Uneven development and significant disparities exist within Gansu Province—there are also striking disparities between rural and urban areas, and a wide gap between the capital city, Lanzhou, and secondary cities and townsMSEs in rural areas across China face a critical challenge in gaining access to credit. According to the 2017 China Financial Inclusion Report and the 2017 Global Findex, about 86 percent of micro-enterprises and 65 percent of small and medium enterprises in China lack unconstrained access to finance, resulting in an MSE financing gap of US$1.9 trillion, equivalent to 17 percent of gross domestic product (GDP). Access to formal credit in China’s rural areas is only about 19 percent, compared to 44 percent in urban areas. The main barriers to access are the large physical distances to financial service providers, such as banks; limited credit records; lack of assets that can serve as collateral; short maturity of loans (12 months or less); and the informal nature of many MSEs, all of which render these businesses unable to meet banks’ lending requirements. Prospective borrowers in rural areas and small towns also lack basic financial knowledge and business experience. For those eligible to borrow, going through cumbersome procedures and waiting through a lengthy approval period is