Chongqing Integrated Logistics Demonstration Project

Initial Environmental Examination (Update)

Project Number: 48024-002

July 2020

People’s Republic of China: Chongqing Integrated Logistics Demonstration Project

Prepared by Chongqing Transportation Holding Group Company for the Asian Development Bank

This updated initial environmental examination is a document of the Borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management or staff, and may be preliminary in nature. Your attention is directed to the ‘terms of use” section of this website.

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

CURRENCY EQUIVALENTS (as of 16 July 2020)

Currency Unit - Yuan (CNY) CNY 1.00 = US$ 0.1430 USD 1.00 = 6.9890 CNY

ABBREVIATIONS

ADB Asian Development Bank AQG air quality guideline AP affected person ASL above sea level C&D construction and demolition CILD Chongqing integrated development CILIS Cloud Based Intelligent Logistics Public Information System CNY Chinese Yuan CPMO Chongqing project management office CMG Chongqing Municipal Government CQDRC Chongqing Development and Reform Commission CQTG Chongqing Transportation Holding Group Company CRVA climate risk and vulnerability analysis CSC construction supervision company CTLP Chongqing Transportation Logistics Park DI design institute EHS environment, health and safety EIA environmental impact assessment EIR environmental impact report EIT environmental impact table EMP environmental management plan EMS environmental monitoring station EMU environmental management unit EPB environmental protection bureau FSR feasibility study report GAP gender action plan GDP gross domestic product GEV generated extreme value GHG greenhouse gas GRM grievance redress mechanism IUCN International Union for Conservation of Nature IWTDNH Inland Waterway Drop and Haul LEED Leadership in Energy & Environmental Design IEE initial environmental examination LIC loan implementation consultancy LIEC loan implementation environmental consultant LNG liquefied natural gas MEP Ministry of Environmental Protection NLP Nanpeng Logistics Park O&M Operation and maintenance OPF Operator of project facility PCR Project completion report PIU project implementation unit PME powered mechanical equipment PMO project management office PPCU project public complaint unit PPP Public-Private-Partnership PPTA project preparatory technical assistance PRC People’s Republic of China Ro-Ro roll-on/roll-off RCP representative concentration pathways SEMP Specific EMP SPS Safeguard Policy Statement, ADB SWCR Soil and water conservation report TA technical assistance TMB traffic management bureau TSP total suspended particulates WBG World Bank Group WHO World Health Organization WWTP wastewater treatment plants

WEIGHTS AND MEASURES

BOD5 biochemical oxygen demand, five days cm centimeter CO2 carbon dioxide COD chemical oxygen demand dB(A) A-weighted sound pressure level in decibels ha hectare km kilometer km2 square kilometer kWh kilowatt-hour m meter m2 square meter mu land measure in the People’s Republic of China, 1 mu = 666 m2 m/s meters per second m2 square meter m³ cubic meter mg/l milligrams per liter mg/m3 milligrams per cubic meter NOx nitrogen oxides NO2 nitrogen dioxide oC degree Celsius pH A measure of the acidity or alkalinity of a solution PM10 particulate matter smaller than 10 micrometers SO2 sulfur dioxide

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

TABLE OF CONTENTS

PROJECT MAP

EXECUTIVE SUMMARY I. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 8 A. Legal Framework of the PRC ...... 8 B. Applicable ADB Policies, Regulations and Requirements ...... 11 C. International Agreements ...... 14 D. Other Relevant Guidelines ...... 14 E. Applicable National Standards ...... 14 F. Environmental Impact Assessment and Its Administrative Framework ...... 19 G. EIT Approval Status ...... 20 H. Assessment Area and Assessment Period ...... 20

II. DESCRIPTION OF THE PROJECT ...... 21 A. Project Rationale ...... 21 B. Impact and Outcome ...... 23 C. Project Outputs...... 23 D. Contents of Project Outputs ...... 24 E. Special Features ...... 38 F. Eco-Logistics Features of the Project ...... 38 G. Associated Facility...... 51

III. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA) ...... 52 A. Environmental Setting of Chongqing ...... 52 B. Environmental Baseline of Chongqing Transportation Logistics Park Site (Output 1)...... 53 C. Sensitive Receptors Near Chongqing Transportation Logistics Park Site (Output 1) ...... 64 D. Environmental Baseline of Nanpeng Logistics Park Site (Output 2) ...... 64 E. Sensitive Receptors Near Nanpeng Logistics Park Site (Output 2) ...... 75

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 76 A. Positive Impacts and Environmental Benefits ...... 76 B. Energy Conservation of Inland Waterway Transport ...... 76 C. Ghg Emission Reduction ...... 77 D. Environmental Compliance Audit ...... 78 E. Impacts Related to Project Location, Planning, Design ...... 81 F. Measures During Detailed Design and Pre-Construction ...... 81 G. Impacts and Mitigation Measures During Construction ...... 83 H. Impacts and Mitigation Measures During Operation ...... 93 I. Cumulative and Induced Impacts ...... 101 J. Climate Risks Assessment and Adaptation ...... 104

V. ANALYSIS OF ALTERNATIVES ...... 106 A. Without-Project Alternatives ...... 106 B. Alternative Locations ...... 106

VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 108 A. PRC and ADB Requirements ...... 108 B. Information Disclosure ...... 108 C. Consultation ...... 113 D. Future Consultation ...... 118 VII. GRIEVANCE REDRESS MECHANISM ...... 118 A. Introduction ...... 118 B. ADB GRM Requirements ...... 119 C. Current Practice in the PRC ...... 119 D. Proposed Mechanism ...... 119 E. Types of Grievances Expected and Eligibility Assessment ...... 120 F. Grm Procedure and Timeframe ...... 120

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 123 A. Introduction ...... 123 B. Objectives ...... 123 C. Organizational Structure for Environmental Management ...... 123 D. Organizations and Their Responsibilities for EMP Implementation ...... 124 E. Potential Impacts and Mitigation Measures ...... 124 F. Environmental Monitoring, Inspection and Reporting ...... 125 G. Training, Capacity Building, Awareness Raising ...... 125 H. Cost Estimates ...... 125

IX. CONCLUSION AND RECOMMENDATIONS ...... 126 A. Expected Project Benefits ...... 126 B. Adverse Impacts and Mitigation Measures ...... 126 C. Risks and Assurances ...... 127 D. Overall Conclusion ...... 129

APPENDIX I: ENVIRONMENTAL MANAGEMENT PLAN ...... 130 APPENDIX II: CLIMATE CHANGE RISK ASSESSMENT REPORT ...... 156 LIST OF TABLES

Table 1.1: Applicable Environmental Laws ...... 8 Table 1.2: Applicable Environmental Assessment Guidelines ...... 9 Table 1.3: Applicable Environmental Standards ...... 9 Table 1.4: Applicable International Agreements ...... 14 Table 1.5: Comparison of PRC and WBG Ambient Air Quality Standards ...... 15 Table 1.6: Environmental Quality Standards for Noise (equivalent sound level LAeq:dB) ...... 17 Table 1.7: Environmental Quality Standards for Surface Water ...... 18 Table 1.8: Standards for Discharging Wastewater from Construction Sites ...... 19 Table 2.1: Summary of Project Outputs ...... 25 Table 2.2: Summary of Chongqing Transportation Logistics Park Buildings ...... 29 Table 2.3: Summary of Equipment for Chongqing Transportation Logistics Park ...... 30 Table 2.4: Summary of Nanpeng Logistics Park Buildings...... 33 Table 2.5: Summary of Equipment for Nanpeng Logistics Park ...... 34 Table 2.6: Summary of Drop-and-Haul Component ...... 35 Table 2.7: Summary of Chongqing Cloud Based Intelligent Logistics Information System ...... 38 Table 2.8: Energy Consumption of Administration Building ...... 49 Table 2.9: Energy Consumption of Reference Building ...... 49 Table 3.1: Local Meteorological Parameters in Shapingba District ...... 54 Table 3.2: Plant Species Recorded in the Project Area of Tuanjiecun Logistics Park ...... 56 Table 3.3: Dominant Vegetation Species Near Tuanjiecun (Output 1) ...... 57 Table 3.4: Fauna Near the Project Influence Area of Tuanjiecun (Output 1) ...... 58 Table 3.5: Air Quality Monitoring Results – Shapingba (Output 1) ...... 60 Table 3.6: Surface Water Quality Monitoring Results – Output 1 ...... 62 Table 3.7: Groundwater Quality Baseline Data for Output 1 ...... 63 Table 3.8: Noise Monitoring Results – Output 1 ...... 63 Table 3.9: Environmental Sensitive Receptors – Tuanjiecun (Output 1) ...... 64 Table 3.10: Local Meteorological Parameters in Banan District (Output 2) ...... 66 Table 3.11: Flora Resources in the Project Influence Area of Output 2 ...... 67 Table 3.12: Dominant Vegetation Species Near Output 2 ...... 68 Table 3.13: Summary of Fauna Recorded Near Output 2 Site ...... 69 Table 3.14: Ambient Air Quality Monitoring Results (Output 2) ...... 73 Table 3.15: Surface Water Quality Monitoring Results – Nanpeng (Output 2) ...... 74 Table 3.16: Groundwater Quality Baseline Data for Output 2 ...... 75 Table 3.17: Noise Monitoring Results – Nanpeng (Output 2) ...... 75 Table 3.18: Main Environmentally Sensitive Receptors (Output 2) ...... 76 Table 4.1: Fuel Consumption Difference between Inland waterway Transport and Traditional Highway Transport ...... 77 Table 4.2: Maximum Noise Levels of Construction Machinery ...... 85 Table 4.3: Estimated Construction Noise at Different Distances (Unit:dB(A)) ...... 85 Table 4.4: Summary of Wastewater Generated during Construction (m3/d) ...... 87 Table 4.5: Estimated Water Quality—Output 1 ...... 94 Table 4.6: Estimated Wastewater Quality—Output 2 ...... 95 Table 4.7: Main Noise Sources and Sound Power Levels – Output 1 ...... 95 Table 4.8: Main Noise Sources and Sound Power Levels – Output 2 ...... 96 Table 4.9: Estimated Pollutant Production and Emission Condition—Output 1 ...... 97 Table 4.10: Estimated Pollutant Production and Emission Condition—Output 2 ...... 98 Table 4.11: Estimated Mitigation Measures, Cost and Results—Output 1 ...... 99 Table 4.12: Estimated Mitigation Measures, Cost and Results – Output 2 ...... 100 Table 6.1: Profile of Respondents of Questionnaire Survey ...... 111 Table 6.2: Summary of Questionnaire Survey Results – Tuanjiecun ...... 111 Table 6.3: Profile of Respondents of Questionnaire Survey - Nanpeng ...... 113 Table 6.4: Summary of Questionnaire Survey Results - Nanpeng ...... 113 Table 6.5: Profile of Respondents of Additional Questionnaire Survey (Output 2) ...... 115 Table 6.6: Summary of Additional Questionnaire Survey Results (Output 2) ...... 115 LIST OF FIGURES

Figure 2.1: Chongqing Railroad Logistics Base ...... 25 Figure 2.2: Chongqing Transportation Logistics Park ...... 26 Figure 2.3: Site Plan of Chongqing Transportation Logistics Park ...... 27 Figure 2.4: Chongqing Roadway Logistics Base ...... 31 Figure 2.5: Layout of Nanpeng Logistics Park ...... 32 Figure 2.6: Site Plan for Areas C & D ...... 33 Figure 2.7: Illustration of Eco-logistics Features of Output 1 (part 1) ...... 40 Figure 2.8: Illustration of Eco-logistics Features of Output 1 (part 2) ...... 41 Figure 2.9: Optimized routes for loaded freight truck and empty truck of Output 1...... 42 Figure 2.10: Site Terrain analysis (left), energy conservation analysis (center) and parking lot demonstration (right) ...... 42 Figure 2.11: Conceptual landscaping designs of the logistics parks ...... 43 Figure 2.12: Building Energy Conservation Demonstration...... 44 Figure 2.13: Stormwater Collecting Ponds based on Site Terrain (left) and the Layout (right) for Output 1 ...... 45 Figure 2.14: Illustration of Eco-logistics Features of Output 2 ...... 46 Figure 2.15: Routes Analysis of Entering and Existing Trucks for Output 2 ...... 47 Figure 2.16: Building orientation consideration to conserve energy...... 47 Figure 2.17: Green Area Layouts (top) and Permeable Surfaces (bottom) ...... 48 Figure 2.18: Green Area Design Illustration ...... 48 Figure 2.19: Natural Lighting and Ventilation Design of the Warehouse ...... 49 Figure 2.20: Stormwater collection ponds at Nanpeng Logistics Park (Output 2) ...... 50 Figure 2.21: Green Ground Planning in the Logistics Park ...... 50 Figure 3.1: River Systems in Chongqing ...... 52 Figure 3.2: Terrain Photos of Tuanjiecun Site (Output 1) ...... 54 Figure 3.3: Baseline Data Measurement Locations – Tuanjiecun ...... 61 Figure 3.4: Surface water sampling location – Liangtan River ...... 62 Figure 3.5: Terrain Map of Nanpeng Site ...... 65 Figure 3.6: Terrain Photo of Nanpeng Site ...... 66 Figure 3.7: Typical soil types found around Nanpeng project site ...... 70 Figure 3.8: Baseline Data Measurement Locations for Nanpeng(Output 2) ...... 72 Figure 3.9: Surface water sampling locations - Huaxi River ...... 74 Figure 4.1: Photos of Nanpeng Developed Site ...... 79 Figure 4.2: Loading and unloading at Guojiatuo Inland Waterway Port ...... 81 Figure 5.1: Chongqing Roadway Logistics Base Location ...... 105 Figure 5.2: Location of Tuanjiecun Logistics Park ...... 105 Figure 6.1: Web-site Information Disclosure for Output 1 and Output 2 ...... 108 Figure 6.2: Public Posting in Affected Communities and Consultation Meetings ...... 108 Figure 6.3: Disclosure of EIT for Output 1 on Chongqing Shapingba District EPB’s Website ... 109 Figure 6.4: Disclosure of EIT for Output 2 on Chongqing Banan District EPB’s Website ...... 110

Nov l6, 2015 Mr S.harad axena PrincipaJ Trru1sp(nt Specfa· f st Asia Development Hank 6-ADBAvenue Manduluyong City Metro Manila 1550 Philippfries

Dea_r Mr Saxena Subjed! 48024 Ch-0ngqing Integrated Logi tlics Demonst1rntiio,n Project A conw·l da e In.idal Envfronmental .Examil.latio11 (]EE) and Env i.roruneota l Iv anagement Plat (EMP) coveri.lilg alJ project ourputs was prepared based on the project feasibilit y study reports and two domestic environmental assessmen reports: E vironmental Impact Tables (EIT) for Chongqing Tr.msporta ion Logistics: Park and . anpeng Logis ti.cs Park The ITs were prcpa.red by the Environmental Re$earch Center of People's Liberation Anny Logisiics Engineering In stitute and approv,ed by the Environmental Pro(ection Bureaus in Sruipil,gba (output 1) and Banan (output 2} Disl:ric t'S. This is to fo11naHy advi.se yo[I (hat there is no objection to the IEE and EMP documents beiog posted on the ADB website according to the ADB disclosure prncedures. We further confil'm 11a w wiU implement all required actions as set out in the IEE an.d EMP d:uring project processing and .implem entatioD and accept ADS's supervjsio n and 1nspection of IEE and EMP imp]emeotatfon.

H uang 'ffijiffvo Deputy Project Map

EXECUTIVE SUMMARY

A. Introduction

1. This Initial Environmental Examination (IEE) has been prepared for the proposed Chongqing Integrated Logistic Demonstration Project (the project) in the city of Chongqing, the People’s Republic of China (PRC). This IEE has been prepared in accordance with the requirements of Asian Development Bank’s (ADB’s) Safeguard Policy Statement (SPS, 2009) on the basis of (i) two domestic environmental impact tables (EITs) prepared by a certified domestic environmental impact assessment (EIA) institute, (ii) three project feasibility study reports (FSRs), (iii) social and economic assessments conducted under the project preparatory technical assistance (PPTA), (iv) discussions held during Asian Development Bank (ADB) missions, PPTA consultants, Chongqing Municipal Government (CMG) and two project district governments, including Shapingba District Environmental Protection Bureau (EPB) and Banan District EPB, the approving authorities for the domestic environmental assessments.

2. Chongqing is located in the southwest of the PRC between the well-developed coastal and central parts and the less developed but resource rich western parts of the PRC. Chongqing is one of the five national central cities, and it is the largest directly administered municipality. Chongqing covers an area of 82,402 square kilometer (km2) with a total population of 29.5 million (2012),

3. Located in the upper reach of Yangtze River, Chongqing is a major transportation hub for highway, railroad, aviation and inland waterway transportation. By 2012, the total lengths of railroad, inland waterway and highway were 1,452 kilometers (km), 4,331 km, and 120,728 km, respectively, and the total freight goods transported were 865 million tons.

4. The proposed project will build parts of Chongqing transportation logistics park (Output 1) and Nanpeng Logistics Park (Output 2), upgrade and expand the inland waterway roll-on/roll-off (Ro-Ro) transport operation, establish a logistics information system, and develop and implement an institutional strengthening and capacity development program. The proposed project will be a demonstration project that will develop integrated logistics parks that provide a range of logistics services such as storage, inventory management, sorting, labelling, re- packaging, consolidation and inspection facilities. The project will combine the development of hard infrastructure with soft components such as logistics information services that will enable logistics service providers, such as freight forwarding companies to increase efficiency and reduce costs through better tracking and control over the supply chain. The project will also incorporate eco-logistics features that minimize the use of energy, water, materials, environmental pollution and waste during design, construction and operation of the logistics parks. The park buildings will seek national and international green building certification and will develop environmental and quality management system certified under the international ISO standards 14001 and 9001.

5. The project is part of the CMG’s overall plan to develop an integrated and multimodal logistics system in Chongqing as specified in the National Logistics Centers Planning of Three Logistics Bases and Four Port Areas. The project is consistent with ADB’s country partnership strategy for the PRC for 2011-2015 PRC, which seeks to improve transport efficiency through intermodal transport and related logistics services development. The project is aligned with the Sustainable Transport Initiative which highlights logistics improvements as an important

opportunity for sustainable transport operations.1

B. Project Design

6. The impact of the project will be the improvement of logistics services in the Yangtze River Economic Development Belt and One-Belt One-Road region. The outcome of the project will be the demonstration of an efficient and integrated multimodal logistics system in Chongqing.

C. Project Outputs

7. Output 1: Chongqing transportation logistics park developed. This output will develop a park with three functional areas, namely (i) roadway logistics hub and city distribution center,2 (ii) logistics financial exchange center,3 and (iii) road-rail intermodal logistics hub. This will be the major terminal for Chongqing, located at Tuanjiecun within the Shapingba district, and at the starting point of Yu-Xin-Ou line. The completion of the logistics park will directly support and benefit the international rail corridor operations;

8. Output 2: Nanpeng logistics park constructed. This output will develop a park with three functional zones, namely (i) freight transfer area; (ii) customs inspection staging area, and (iii) type B (open access for other companies) bonded zone. The park is located at Nanpeng within the Banan district;

9. Output 3: Yangtze River inland waterway Ro-Ro transport demonstrated. This output will (i) build three energy efficient roll/on-roll-off (Ro-Ro) ships (approximately 4000 tons each); (ii) procure alternate energy (e.g. liquefied petroleum gas) tractors and trailers for the Ro- Ro operation; and (iii) establish a Ro-Ro logistics information system. The Ro-Ro operation shall use Guojiatuo Port in Chongqing and Yinxingtuo Port at Yichang;

10. Output 4: Cloud Based Intelligent Logistics information system established. This output will develop a system including (i) information infrastructure and interfaces; (ii) logistics information sharing platform; (iii) logistics trade service platform; iv) logistics governance service platform; and (v) logistics value added services. The logistics information system will serve as the integrated logistics information system for the entire city of Chongqing and will serve as the platform for logistics information sharing, logistics operation, logistics trading, government clearances and logistics financial services; and

11. Output 5: Institutional capacity strengthened. This output will provide technical support for project implementation and training to improve the management capacity of the staff in the executing agency and the implementing agency and other related entities on logistics development and operation.

D. Major Benefits and Project Features

12. The proposed project would directly benefit 2.92 million people currently living in the three project districts and indirectly benefit 7.22 million residents in the inner city of Chongqing, 8,412 companies undertaking logistics business and 386,800 employees working in the city of Chongqing.

1 ADB. 2010. Sustainable Transport Initiative Operational Plan. Manila. 2 This will house a number of logistics companies and an information system to facilitate logistics transactions. 3 This facility will provide value added financial services such as insurance, financing, guarantees etc.

13. General benefit of the project includes (i) improve logistics facilities, (ii) increase logistics operation and management efficiency, (iii) ensure commodity supply and daily life of local residents, (iv) reduce costs of freight transport and prices of consumer goods, (v) improve transport conditions (safety and congestion) in urban areas, (vi) reduce pollution and vehicle emission in urban area, and (vii) increase employment opportunity. The project will create skilled and unskilled jobs in logistic industry with additional opportunities during project facility construction.

14. The project would reduce freight trips in the inner city of Chongqing, costs of freight transportation and prices of consumer goods, air pollution, energy consumption and emission, traffic accidents and disparity between urban and rural areas. Once fully operational, the project is expected to result in a net reduction of 18,000 tons of carbon dioxide (CO2) emissions per annum from reduced truck trips and modal shift from truck to inland waterway.

15. Output 1 and Output 2 will adopt many new ecological features to demonstrate their applications in logistics parks. For Output 1, A Leadership in Energy & Environmental Design (LEED) certification for the information exchange center will be pursued. This will be one of the first buildings to be constructed at the logistics park. In addition, the administrative building will be designed and constructed according to the Chongqing Green Building Standard, which is the PRC green building standards adopted in Chongqing and all other main buildings will meet the Chongqing Green Industrial Building Technology and Evaluation Guidelines. For Output 2, the administration building will be certified under Chongqing Green Building Standard and all other main buildings will meet the Chongqing Green Industrial Building Technology and Evaluation Guidelines. For both outputs, a range of features will be integrated in the design of the parks. It is expected that the unit area energy consumption will be reduced by 50.2% comparing to business as usual scenario; LED lighting will be utilized at the park and this will result in an annual electricity savings of 1.03 million kWh; natural ventilation will be maximized with an energy saving of 60,000 kilowatt-hour (kWh) per annum; energy efficient air conditioning units will be installed with energy savings of 180,000 kWh; water saving devices will be utilized and they will save tap water use by 1,680 tons per annum; over 12,000 square meters (m2)of ‘sponge’ infiltration grassland areas will be built and two stormwater storage ponds, with total capacity of 1,000 cubic meter (m3), will be built and they will result in over 7,000 m3 of stormwater discharge reduction and the water will be utilized for water plants and grass and washing vehicles.

E. Project Environmental Impacts and Mitigation Measures

16. The project is classified as Category B for environment both by ADB and the PRC authorities. The domestic EITs were approved by the District EPBs in late October 2015. An IEE, including an environment monitoring plan (EMP), is required by ADB. Construction and operation of the project would have a number of site-specific impacts which can readily be mitigated. The closest residential area to Output 1: Chongqing Transportation Logistics Park (after resettlement) will be Qingfen Village, 2100 m from the site. The closest residential area to Output 2: Nanpeng Logistics Park will be 300 m from the site. Part of the land for Output 2 has already been cleared prior to ADB project. A due diligence assessment was conducted for this area during the project preparation.

17. Air quality and noise. Dust and noise will be generated during the construction stage and will need to be mitigated to reduce potential impacts on affected persons. Dust and pollutant suppression and noise reduction measures during construction have been specified in

4 the EMP. There are no sensitive receptors within 300 m of the project sites.

18. Operation of the logistics parks and the inland waterway port will generate traffic noise and air and greenhouse gas pollutants from the trucks and trailers going in and out of the facilities. Traffic speeds and controls will be enforced. Operational air pollutant and greenhouse gas emissions and noise from the facilities have been assessed and would comply with applicable PRC standards. With mitigation measures in place, potential air quality and noise impacts during construction and operation would be reduced to acceptable levels.

19. Water quality. Uncontrolled wastewater and muddy runoff from construction sites and work camps could potentially pollute nearby water bodies, soil and groundwater and block drains. Material stockpiles will be protected against runoff and appropriate temporary drainage will be installed. There will be two stormwater retention ponds in each logistics park to collect run-off, and water will be reused for watering plants and washing trucks. Wastewater from workers camp will be pretreated by septic tank before discharging.

20. Solid Waste. Solid waste generated during construction includes construction refuse and construction and demolition (C&D) waste dominated by excavated spoil during earth works for the project sites. Mitigation measures include temporary storage and reuse of topsoil, maximizing the re-use of earth cut materials and C&D wastes on the project and permanent disposal of C&D wastes at designated sites only.

21. Soil Erosion. Construction activities could affect soil in the project areas through erosion, contamination and differential compaction. During the construction of the Nanpeng Logistics Park, approximately 35,000 m3 of earth will be excavated, while for Chongqing Transportation Logistics Park, approximately 50,000 m3 will be excavated. It is expected that all excavated soil will be used within the logistics park construction. The most effective erosion control during construction will be temporary measures such as the use of hoardings, tarpaulin covers to cover exposed surfaces and loads, interception drainage, reinstatement of vegetation to protect disturbed surfaces from surface flows and sedimentation ponds to remove silt and sand from construction site runoff.

22. Proposed mitigation measures during operation include permanent engineering measures such as installation of drainage ditches, planting measures such as grass seeding of exposed areas and spoil disposal sites.

23. Biological Resources. Due to its topographic conditions and subtropical monsoon climate, vegetation eco-types in the project area of the logistics base are mainly evergreen broad-leaved and warm coniferous forest, transitioning from arbor into shrubs and ground cover due to its transition zone location between mountains and valleys. The vegetation types in this project area are mostly shrubs, grassland and planted agriculture products. Trees found in the project area are mainly planted species.

24. No flora or fauna species have been identified as international and national conservation value within the project area of influence, with the exception of Camphor Tree (Cinnamomum camphora), which has national conservation value, this species is located mainly in Zhongliang Mountain area in the east of the project area of influence.

25. Climate change. Chongqing will be subject to climate change impacts including temperature and precipitation increase, with increased probability of encountering higher frequencies and intensities of severe storms and floods. A climate risk and vulnerability analysis

5 of the project sites has been carried out and a number of climate adaptation measures have been recommended, including increasing capacity of drainage systems and improving site infiltration and flood capacity through the inclusion of permeable paving and integration of detention ponds for capture and reuse of stormwater.

26. The total carbon emissions from the operation of the project are approximately 34,000 tons per annum when the project components are fully operational. Economic analysis demonstrates that the project will result in an approximate net reduction of 18,000 tons carbon emissions per annum, as a result of improved efficiencies and modal shift from road to inland waterway, although these savings may be off-set by induced freight traffic and embodied carbon during construction.

27. Physical Cultural Resources. Assessment undertaken did not reveal the presence of physical cultural resources within the project area of influence. Should buried artifacts of archaeological significance be uncovered during the construction stage will be stopped and immediately reported to the local cultural authority in accordance with PRC’s Cultural Relics Protection Law.

28. Land acquisition. This project would acquire a total of 45.03 ha (675.13 mu) of collective land that includes 28.89 ha (433.15 mu) of cultivable land, 2.69 ha (40.26 mu) of homestead land, 1.22ha (18.25 mu) of gardens, 13.85 mu of forestry land and 169.62 mu of waste land and construction land. A total of 25,635 m2 of houses will be demolished. There is no temporary land acquisition.

29. In addition, the total area of house/building demolition is 25,635 m2, including brick- concrete houses of 14,294 m2, brick-wood of 6,222 m2, earth-wood of 1,647 m2, simple structure of 3,473 m2. No temporary land acquisition is needed. For Chongqing Transportation Logistics Park (Output 1), 488 persons from 104 households, including 41 persons from 10 households are affected by land acquisition only, 353 persons from 89 households are affected by both land acquisition and house demolition, and 94 persons from 5 enterprises. For Nanpeng Logistics Park (Output 2), a total of four village communities, are affected by 324 persons from 92 households are affected. The project Resettlement Plan documents due diligence carried out and the proposed compensation and livelihood restoration program.

F. Information Disclosure, Consultation and Participation

30. Information disclosure and public consultation for the proposed project components was conducted in accordance with the PRC Guideline on Public Consultation in EIA (2006) and ADB’s SPS requirements during the course of preparing the IEE. The EITs for the two logistics parks have been disclosed on Shapingba EPB and Banan EPB’s websites. Project information was also put on the implementing agency’s website and notices were posted in local communities. One round of public consultation was conducted, through questionnaire survey and interviews. A total of 103 people in Banan and Shapingba districts were surveyed. Consulted persons and organizations overwhelmingly supported the project. Suggestions from stakeholders were received, including good planning of night-time construction to minimize noise impact and measures to reduce fugitive dust emissions. The IEE will be disclosed on ADB’s website. Consultation will continue during implementation via multiple media, including questionnaire surveys, household visits phone calls and public meetings.

G. Grievance Redress Mechanism

31. A project grievance redress mechanism (GRM) has been developed and included in this IEE and EMP which will used to document and resolve complaints from affected people. The GRM will be coordinated by Chongqing project management office (CPMO) who will set up a complaint center with hotline for receiving environmental and resettlement grievances which will be accessible to diverse members of the community, including more vulnerable groups such as women and youth. Multiple points of entry and modes of access, including face-to-face meetings, written complaints, telephone calls, or e-mail, will be available. The GRM was discussed during public consultations.

H. EMP Implementation Responsibilities

32. As the executing agency for the project, CMG will be responsible for the overall implementation and compliance with loan assurances and the EMP. The executing agency has established a CPMO, who will be responsible, on behalf of the executing agency, for the day-to- day management of the project. The CPMO will have the overall responsibility to coordinate and supervise the implementation of environment mitigation and monitoring measures.

33. CPMO will engage the loan implementation consultant (LIC) services; supervise the procurement process; supervise contractors and their compliance with the EMP; conduct regular site inspections; act as local entry point for the project GRM; prepare project progress reports, annual environment monitoring reports and the project completion report and submit them to ADB. The CPMO will contract the local Environmental Monitoring Station (EMS) or certified environmental monitoring entity to conduct environmental impact monitoring during the construction stage.

34. The implementing agency along with the four project implementing units (PIUs) will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. To ensure that the contractors comply with the EMP provisions, the implementing agency will ensure that the environmental requirements for the contractors in the EMP are incorporated into all bidding documents.

35. A loan implementation environmental consultant (LIEC), as an external monitor, will conduct independent verification of EMP implementation and environmental impact monitoring results during the construction stage of the project.

36. Construction contractors will be responsible for implementing the mitigation measures during construction under the supervision of construction supervision companies, implementing agency and CPMO. Each contractor will be required to develop site specific EMP (SEMP) and to have a dedicated person with responsibility for implementation and monitoring of environmental requirements.

37. Four PIUs will be responsible for construction, operation and maintenance for this project. During the operational phase, the implementing agency, Banan District EPB and Shapingba District EPB will periodically verify and monitor environmental conditions in line with national standards. In addition, the logistics parks will aim to achieve ISO14001 environmental and ISO9001 quality management system certification.4 This will require implementation of a

4 ISO 14001:2015 maps out a framework that a company or organization can follow to set up an effective environmental management system and to achieve international certification. It can be used by any organization

7 comprehensive operational environmental and quality management, monitoring and reporting system.

I. Risks and Assurances

38. The project has no unusual technical risks and conventional engineering designs with proven reliability and performance will be adopted for all the components. The logistics park designs have incorporated innovative eco-logistic approaches and advanced technologies which will contribute to reduced environmental impacts which could provide a demonstration and showcase for other logistics facilities being planned in the PRC. The main risks are the failure of the detailed design to take account of the recommended approaches and the CPMO, the implementing agency and PIUs to monitor environmental impacts and implement the EMP. This risk will be mitigated by (i) allocating adequate budget in the loan for specialist consulting services to support eco-logistics, environmental management and monitoring; (ii) appointing qualified LIC and LIEC; (iii) ensuring Contractors develop SEMPs prior to commencing work which need approval and sign off by LIEC; (iv) providing training in environmental management under the project; (v) following appropriate project implementation monitoring and mitigation arrangements, (vi) ADB conducting regular project reviews; and (vii) project assurances covenanted in the loan and project agreement.

J. Overall Conclusion

39. The domestic EITs and this IEE conclude that all identified environmental impacts can be mitigated to acceptable levels if the measures defined in the EMP and assurances are carefully implemented and monitored. The project is feasible from an environmental safeguards point of view. The improved efficiency of logistics operations and the eco-logistics measures proposed through the project will have environmental benefits.

regardless of its activity or sector. Adopting ISO 14001 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved. http://www.iso.org/iso/home/standards/management-standards/iso14000.htm ISO 9001:2015 is a quality management system that companies can adopt to continually monitor and manage quality across all operations. As the world’s most widely recognized quality management standard, it outlines ways to achieve, as well as benchmark, consistent performance and service.

I. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Legal Framework of the PRC

1. The PRC has a wide range of laws, regulations, technical guidelines and standards that govern the way in which environmental protection and environmental impact assessment for construction projects must be implemented, including for pollution prevention and control of air, noise, water, ecology and solid waste impacts, and technical guidelines on assessing atmospheric, noise, water and ecological impacts. At the top level the People’s Congress of the PRC has the authority to pass and revise national environmental laws; the Ministry of Environmental Protection (MEP) under the State Council promulgates national environmental regulations, and technical guidelines on environmental impact assessment and pollution prevention and control; the MEP either separately or jointly with the Administration of Quality Supervision, Inspection and Quarantine issues national environmental standards. The provincial and local governments can also issue provincial and local environmental regulations and guidelines in accordance with the national ones. They are also often delegated the authority by MEP to approve EIA reports for construction projects in the provinces, provincial level municipality and autonomous regions, except those with national interest and those that cross provincial boundaries that would need MEP approval. The local (city and county) EPBs enforce environmental laws and regulations and conduct environmental monitoring within their jurisdiction. Local EPBs can be delegated the authority to approve environmental impact assessments by the provincial EPDs. In addition, national and local five-year environmental protection plans form an important part of the legal framework.

2. The PRC Environmental Impact Assessment Public Participation Interim Guideline issued in 2006 requires that the public are involved in the EIA process. This was further clarified under the Technical Guidelines for Environmental Impact Assessment: Public Participation (public comment version, January 2011). Since August 2012, all domestic environmental impact reports for construction reports submitted for approval must include an abstract for disclosure on the web-site of the approval authority (MEP Order No. [2012] 51).

3. Environmental impact assessment procedures have been established in the PRC for over 20 years. Domestic EIA studies are required within the PRC national and local legal and institutional framework for new projects. The primary laws that govern the EIA study of new projects are provided in Table 1.1.

Table 1.1: Applicable Environmental Laws

No. Title of the Law Year Issued 1 Environmental Protection Law 2014 2 Environmental Impact Assessment Law 2003 3 Water Law 2002 4 Water Pollution Prevention and Control Law 2008 5 Air Pollution Prevention and Control Law 2000 6 Noise Pollution Control Law 1997 7 Solid Waste Pollution Prevention and Control Law 2005 8 Water and Soil Conservation Law 2011 9 Forest Law 1998

No. Title of the Law Year Issued 10 Urban and Rural Planning Law 2008 11 Land Administration Law 1999 12 Cultural Relics Protection Law 2002 Source: TA Consultants.

4. The implementation of environmental laws is supported by a series of associated management and technical guidelines, which are issued by the MEP at the national level and are summarized in Table 1.2.

Table 1.2: Applicable Environmental Assessment Guidelines

No. Guideline Code/Year 1 Guideline for Technical Review of EIA on Construction Projects HJ 616-2011 2 Management Guideline on EIA Categories of Construction Projects 2008

Further Enhance the Management of EIA and Preventing Environmental 3 Risks 2012 Guideline on Jurisdictional Division of Review and Approval of EIAs for 4 Construction Projects 2009

5 Guideline on EIA Categories of Construction Projects 2008

6 Interim Guideline on Public Consultation for EIA 2006

Chongqing Plan Establishment of National Environmental Protection 7 2010-2013 Model City

8 Technical Guidelines for EIA – General Program HJ 2.1-2011

9 Technical Guideline for EIA – Atmospheric Environment HJ 2.2-2008

10 Technical Guideline for EIA – Surface Water HJ/T 2.3-1993 11 Technical Guideline for EIA – Acoustic Environment HJ 2.4-2009

12 Technical Guideline for EIA – Groundwater Environment HJ 610-2011 13 Technical Guideline for EIA – Ecological Impact HJ 19-2011

Technical Guidelines for Environmental Risk Assessment for Construction HJ/T 169-2004 14 Projects Source: TA Consultants.

5. The national environmental quality standard system that supports the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function, pollutant emission/discharge standards and ambient environmental standards. The relevant main standards applicable to the project are shown in Table 1.3.

Table 1.3: Applicable Environmental Standards

No. Standard Code 1 Surface Water Quality Standards GB 3838-2002 2 Environmental Quality Standards for Noise GB 3096-2008

No. Standard Code 3 Ambient Air Quality Standards GB 3095-2012 4 Integrated Emission Standard of Air Pollutants GB 16297-1996 5 Integrated Wastewater Discharge Standard GB 8978-1996 6 Underground Water Quality Standard GB/T 14848-93

Standards for Pollutant Discharges of Municipal Wastewater Treatment 7 Plants GB 18918-2002 Pollution Control Standards for Storage and Disposal Site of General 8 Industrial Solid Waste GB 18599-2001

9 Noise Standards for Construction Site Boundary GB 12523-2011

10 Noise Standards for Industrial Enterprises GB 12348-2008

11 Wastewater Quality Standards for Discharge to Municipal Sewers CJ343-2010

12 Standard for Pollution Control on Hazardous Waste Storage GB18597-2001

13 Cooking Fume Emission Standards GB18483-2001

14 Odorant Emission Standards GB14554-93 Source: TA Consultants.

6. The Directory for the Management of Different Categories of Construction Project Environmental Impact Assessment classifies environmental impact assessments for construction projects into three categories, based on the ‘significance’ of potential environmental impact due to the project and the environmental sensitivity of the project site as described in the Directory. An Environmental Impact Report (EIR) is required for construction projects with potential significant environmental impacts. An EIT is required for construction projects with less significant environmental impacts. An Environmental Impact Registration Form is required for construction projects with the least significant environmental impacts. For the proposed project, EITs are required since project components have less significant environmental impacts. Consultation was carried out with the Chongqing Hydraulic Bureau and for project of this nature soil and water conservation plan is not required.

7. Climate Change. The PRC’s National Development and Reform Commission (NDRC) in 2007 issued [People’s Republic of] China’s National Climate Change Program. The program describes PRC’s policies and measures to address climate change, with key areas in mitigation, adaptation, science and technology, public awareness and institutional mechanisms. Key areas for climate change adaptation included improvements to agricultural infrastructure, protection of forest and natural ecosystems, and enhanced management of water resources and coastal zones. The NDRC in 2012 issued the [People’s Republic of] China’s Policies and Actions for Addressing Climate Change. This document describes PRC’s policies and proposed actions for climate change mitigation and adaptation, but does not specifically address climate change adaptation in the transport sector besides the selection of cities to pilot low carbon transport systems as a means to mitigate climate change.

8. On 19 September 2014, NDRC issued the National Climate Change Adaptation Plan (2014-2020), which includes targets, greenhouse gas (GHG) emission controls in nine sectors, adaptation to climate change impact, improving regional climate change responding policies, enhancing incentive mechanisms, and deepening international exchange and cooperation.

9. In response to the National Climate Change Plan, the CMG developed Opinions on Implementing the National Climate Change Adaptation Plan (2014-2020), which was issued on 6 February 2015 to all districts and counties in Chongqing. The Opinions focus on the following four areas: (i) general requirements; (ii) control of GHG emissions; (iii) adaptation measures to climate change impacts; and (iv) enhancing policy mechanisms and capacity building.

10. In addition to environmental laws and regulations, there are some occupational health and safety laws and regulations the project must comply with, including the PRC Safety Production Law (2014), State Administrative Regulations of Safety Production (2004), PRC Occupational Illness Law (2011) and Administrative Regulation of Administration of Occupational Health (2012).

B. Applicable ADB Policies, Regulations and Requirements

11. The main applicable ADB policies, requirements, and procedures for the project environmental impact assessment are the Safeguard Policy Statement (SPS 2009) and Environmental Safeguards – A Good Practice Sourcebook. With respect to the environment, these policies are underpinned by the ADB’s Operations Manual, Bank Policies (OM Section F1, 2010). The policy promotes good international practice as reflected in internationally recognized standards such as the World Bank Group’s Environmental, Health, and Safety Guidelines (EHS Guidelines)..The proposed project is classified as Category B, and an initial environmental examination (IEE) and environmental management plan (EMP) are required. The IEE and EMP have been prepared in line with SPS 2009.

12. All projects and programs funded by ADB must comply with the SPS 2009. The purpose of the SPS is to ensure that loans are designed and are implemented in line with applicable regulatory requirements, and are not likely to cause significant environment, health, social, or safety hazards.

13. The SPS 2009 requires a number of additional considerations that are not comprehensively covered through the domestic assessment process, including: (i) project risk and respective mitigation measures and project assurances; (ii) project-level grievance redress mechanism (GRM) for safeguards; (iii) definition of the project area of influence; (iv) physical cultural resources damage prevention analysis; (v) assessment of cumulative and induced impacts; (vi) assessment of trans-boundary and global impacts, including climate change mitigation and adaptation; (vii) examine alternatives to the project’s location, design, technology, and components and their potential environmental and social impacts and document the rationale for selecting the particular alternative proposed; (viii) occupational and community health and safety requirements (including emergency preparedness and response); (ix) impacts on livelihood through environmental media; (x) adopt cleaner production processes and good energy efficiency practices; (xi) carry out meaningful consultation during project design and implementation and encourage informed participation; (xii) EMP includes implementation schedule, budget and measurable performance indicators.

14. Climate Change. ADB’s climate change strategy aims to assist developing member countries and project teams to address the increasing challenges posed by climate change and to enhance the climate resilience of vulnerable sectors including the transport sector. The transport sector in Chongqing is particularly vulnerable to changes in temperature, extreme weather events, floods and landslide. Changes in temperature, both a gradual increase in temperature and an increase in extreme temperatures, may impact road pavements and bridges resulting in heat induced heaving and buckling of expansion joints. Extreme weather events

12 such as stronger and/or more frequent storm events may affect the capacity of the drainage and overflow systems to deal with more intense sounder storms.

15. ADB has adopted a rigorous approach to climate risk management as shown in the framework in Figure 1.1. This framework was institutionalized in early 2014, as a response to the mandated requirement that exposure and vulnerability to climate change risks be identified and accounted for in the preparation of investment projects. The basic steps of the framework include the following:

➢ Step 1: A preliminary climate risk screening to identify projects that may be at risk. This first step, undertaken at the project concept stage by the project processing team, is embodied in the project’s rapid environmental assessment. This first step aims to provide an initial assessment of the level of sensitivity of the project location and project components to climate variables such as temperature, and rainfall quantity and temporal distribution. This preliminary risk screening will indicate whether further climate risk screening should be undertaken.

➢ Step 2: A detailed risk screening for projects that are considered at medium or high risk. This second step is implemented by the project team at the project concept stage. While still a screening mechanism, this step aims to detail further the specific nature of the climate risks. To support this process, ADB has developed tools and technical guidance materials to support climate risk management at sector and project levels. A rapid risk assessment tool, AWARE™ for Projects, is available to project teams to promote a more harmonized approach to climate risk screening. Operational departments may also apply approaches that suit their needs in conjunction with the in-house knowledge and expertise. A risk rating of medium or high should then lead to the undertaking of the third and final assessment.

➢ Step 3: A Climate Risk and Vulnerability Analysis (CRVA) to quantify climate change risks on the project, and subsequent development of adaptation measures in the project design. This step, undertaken during project preparation, requires analysis of climate data (including model projections); impact assessments on project infrastructure, inputs, and performance; and technical and economic feasibility analyses of adaptation options.

➢ Step 4: Reporting of the climate risk screening and vulnerability assessment. The level of risk identified during concept development and the findings of the CRVA carried out during project preparation are documented in the report and recommendations to the President and other ADB board documents. A supplementary document describing the CRVA, the adaptation measures incorporated in the project design, and associated costs can also be attached to the ADB board documents. The level of risk assigned to the project and the budget allocated to adaptation measures are recorded in the ADB project classification system for monitoring and reporting purposes.

16. The climate risk assessment that has been carried out for this project is included in the report in Appendix II and recommended climate adaptation measures are specified in the EMP.

Project Preliminary screening Concept (Rapid Environmental Assessment) Phase

Checklist

No or low risk Medium or high risk

End OR Expert Detailed screening judgment (Aware™ for Projects or other detailed screening tool)

Screening Report

No or low risk Medium or high risk

Project Preparation End OR Expert Climate Risk and Vulnerability Phase judgment Assessment (CRVA)

CRVA Report

Evaluation of adaptation options; cofinancing arrangements

Project Integration of climate risk Implementation reduction measures in project Phase Figure 1.1: Flow Chart for Assessing Climate Risk of Projectsdesign

C. International Agreements

17. The PRC has signed a large number of international agreements regarding environmental protection. Those which have potential application to the project are listed in Table 1.4.

Table 1.4: Applicable International Agreements

No. Agreement Year Purpose 1 Ramsar Convention on Wetlands of 1975 Prevention of the progressive International Importance Especially as encroachment on and loss of wetlands Waterfowl Habitat for now and the future 2 Convention on Biological Diversity 1993 Conservation and sustainable use of biological diversity 3 United Nations Framework Convention on 1994 Stabilization of greenhouse gas Climate Change concentrations in the atmosphere 4 Kyoto Protocol to the United Nations Framework 2005 Further reduction of greenhouse gas Convention on Climate Change emissions 5 Montreal Protocol on Substances That Deplete 1989 Protection of the ozone layer the Ozone Layer Source: TA Consultants.

D. Other Relevant Guidelines

18. The World Bank Group’s EHS Guidelines are the recognized standards for pollution prevention, control and practice in the ADB SPS. The general EHS guidelines, in conjunction with the Industry Sector Guidelines, provide the context of international best practice and will contribute to establishing targets for environmental performance. The relevant sector guidelines referenced include: General EHS Guidelines (covering occupational health and safety and community health and safety); Waste Management Facilities Sector Guidelines; and Water and Sanitation Sector Guidelines.

E. Applicable National Standards

19. Air Quality. The ambient air quality limits are intended to indicate safe exposure levels for the majority of the population, including the very young and the elderly, throughout an individual’s lifetime. Such limits are given for one or more specific averaging periods, typically one-hour average, 24-hour average, and/or annual average. There are three sets of ambient air quality standards for Class 1, 2 and 3 areas5, respectively as stated in the PRC Ambient Air Quality Standards (GB3095-1996 and amendment in 2000), with Class 1 having the best air quality and Class 3 the worst air quality. The ambient air quality in the assessment area of this project has been assigned to meet GB 3095-1996 Class 2 standards. A new standard has been issued in 2012 (GB 3095-2012), which will become effective on January 1, 2016, replacing GB 3095-1996. GB 3095-2012 combines Classes 2 and 3. It also introduces PM2.5 standards and has more stringent NO2 standards. The World Bank Group (WBG) adopted the World Health Organization (WHO) standards for its EHS standards for air quality. Specific standards are shown in Table 1.5.

5 Class 1 area includes natural reserve and environmentally sensitive areas; Class 2 area includes most of PRC areas other than Class 1 and 3; and Class 3 is for specially designated industrial area.

20. On 10 September 2013, the State Council announced the Air Pollution Prevention Action Plan for the PRC (State Council [2013] No. 37). The action plan sets 2017 targets on reducing PM10 emissions in prefecture level cities by more than 10%; PM2.5 emissions by approximately 25% in Beijing-Tianjin-Hebei region, 20% in Yangtze River Delta and 15% in Pearl River Delta; 3 and controlling annual average PM2.5 levels in Beijing at around 60 μg/m . Among the 35 actions identified and described in the plan, the following are deemed to be applicable to this project:

➢ Strengthen control of aerial sources of pollution including controlling dust pollution during construction; ➢ Strengthen control of point source pollution including traffic management and prioritizing public and non-motorized modes of transportation; ➢ Optimize spatial pattern in urban and new district planning to facilitate better air pollutant dispersion; ➢ Strengthen laws, regulations and standards on controlling air pollution; ➢ Strengthen capacities in environmental management and supervision system; ➢ Increase environmental regulatory enforcement; ➢ Implement environmental information disclosure; ➢ Strictly enforce accountability; ➢ Establish monitoring warning system; ➢ Develop contingency plan; and ➢ Adopt timely contingency measures for public health protection during serious air pollution events.

21. The WHO established air quality guideline (AQG) standards for various air quality parameters for the protection of public health. Yet recognizing that progressive actions are needed to achieve these standards and the financial and technological limitations of some countries, cities or localities especially in developing countries, the WHO also established interim targets as intermediate milestones towards achieving the AQG.

22. Table 1.5 compares the PRC’s GB 3095-1996 Class II standards, GB 3095-2012 standards and the World Bank Group’s EHS standards which have adopted the WHO targets and AQG. National standards are still higher than the WHO interim targets in most cases.

Table 1.5: Comparison of PRC and WBG Ambient Air Quality Standards PRC Class 2 (μg/m3) WHO/World Bank Group EHS6 (μg/m3) Air Quality Averaging Period Parameter GB 3095-1996 GB 3095-2012 Interim Targets AQG

1-year 60 60 n/a n/a SO2 24-hour 150 150 50 - 125 20 1-hour 500 500 n/a n/a 1-year 200 200 n/a n/a TSP 24-hour 300 300 n/a n/a 1-year 100 100 30 - 70 20 PM10 24-hour 150 150 75 - 150 50 1-year n/a n/a 15 - 35 10

PM2.5 24-hr n/a 150 37.5 - 75 25 1-hour n/a 350 n/a n/a

6 World Bank Group 2007, ibid.

PRC Class 2 (μg/m3) WHO/World Bank Group EHS6 (μg/m3) Air Quality Averaging Period Parameter GB 3095-1996 GB 3095-2012 Interim Targets AQG

1-year 80 40 n/a 40 NO2 24-hour 120 80 n/a n/a 1-hour 240 200 n/a 200

24-hour 4,000 4,000 n/a n/a CO 1-hour 10,000 10,000 n/a n/a Note: n/a = not available

23. The longer averaging period such as 1-year as shown in Table 1.5 is more applicable to assessing impacts from multiple as well as regional sources; while shorter averaging periods such as 24-hour and 1-hour are more applicable to assessing short-term impacts from project related activities, such as from peak hour traffic or daily or peak construction activities.

24. For a 24-hour averaging period, the following observations are made comparing PRC and WBG ambient air quality standards as shown in Table 1.5:

3 ➢ 24-hr SO2: upper limit of EHS interim target (125 μg/m ) is more stringent than both GB Class II standards (150 μg/m3). 3 ➢ 24-hr PM2.5: the upper limit of the EHS interim target (75 μg/m ) is considerably more stringent than the GB 3095-2012 Class II standard (150 μg/m3). 3 ➢ 24-hour NO2: the EHS AQG (200 μg/m ) is more stringent than the GB 3095- 1996 Class II standard (240 μg/m3) but is the same as the GB 3095-2012 standard (200 μg/m3). 3 ➢ 24-hour PM10: the upper limit of the EHS interim target (125 μg/m ) is the same as both GB Class II standards.

25. The project will comply with GB 3995-2012 Class II standards considering the nature of the project and current background air quality in Chongqing.

26. Fugitive emissions of particulate matter (PM) from construction sites are regulated under PRC’s Air Pollutant Integrated Emission Standard (GB 16297-1996). For particulate matter the maximum allowable emission concentration is 120 mg/m3 and the concentration limit at the boundary of construction sites is � 1.0 mg/m3, with no specification on the particulate matter particle diameter.

27. During construction of the logistic parks, noise levels will comply with the standards in Noise Standards for Construction Site (GB12523-2011), and during operation, the applicable standard is Category- I Standard in Noise Standards for Industrial Enterprises (GB12348-2008). Construction noise will be evaluated at sensitive receptor sites and operational noise will be evaluated within one meter of boundaries of the facility boundaries. Noise levels from construction activities must be in compliance with the Noise Limits for Construction Site (GB12523-90).

28. Standards for various functional area categories are compared with the WBG’s EHS guidelines in Table 1.6, showing that the EHS guidelines have lower noise limits for residential, commercial and industrial mixed areas but higher noise limits for logistics parks and warehouse areas.

Table 1.6: Environmental Quality Standards for Noise (equivalent sound level LAeq:dB) GB 3096-2008 WBG EHS7 Noise Standards Standards Functional Applicable Area Area Day Night Day Night Category 06:00- 22:00- 07:00- 22:00- 22:00 06:00 22:00 07:00 Areas needing extreme quiet, such as 0 convalescence areas 50 40 Areas mainly for residence, hospitals, cultural and educational institutions, 55 45 55 45 1 administration offices Residential, commercial and industrial 2 mixed areas 60 50 Industrial areas, warehouses and logistics 3 parks 65 55 70 70 4a Area on both sides of trunk road 70 55 55 45

29. PRC’s Emission Standard of Environmental Noise for Boundary of Construction Site (GB 12523-2011) regulates construction noise, limiting construction noise levels at the construction site boundary to 70 dB(A) in the day time (06:00 to 22:00) and 55 dB(A) at night (22:00 – 06:00). The WBG does not have standards for construction noise per se.

30. Surface water quality. PRC’s Environmental Quality Standards for Surface Water (GB 3838-2002) defines five water quality categories for different environmental functions. Category I is the best, suitable for head waters and national nature reserves. Category II is suitable for drinking water sources in Class I protection areas, habitats for rare aquatic organisms, breeding grounds for fish and crustaceans, and feeding grounds for fish fry. Category III is suitable for drinking water sources in Class II protection areas, wintering grounds for fish and crustaceans, migration routes, water bodies for aquaculture and capture fishery, and swimming activities. Category IV is suitable for general industrial use and non-contact recreational activities. Category V is the worst which is only suitable for agricultural and scenic water uses. These standards are presented in Table 1.7. The WBG has guidelines on effluent quality standards but not ambient water quality, and recognizes the use of local ambient water quality criteria for EHS purpose.

7 World Bank Group 2007.

Table 1.7: Environmental Quality Standards for Surface Water

Category

Parameter I II III IV V

pH 6 ~ 9 6 ~ 9 6 ~ 9 6 ~ 9 6 ~ 9

90% Dissolved oxygen (DO) [mg/L] saturation >6 >5 >3 >2 or >7.5

Permanganate index (IMn) [mg/L] <2 <4 <6 <10 <15 Chemical oxygen demand (COD) [mg/L] <15 <15 <20 <30 <40 5-day Biochemical oxygen demand (BOD5) <3 <3 <4 <6 <10 [mg/L] Ammonia nitrogen (NH3-N) [mg/L] <0.15 <0.5 <1.0 <1.5 <2.0 Total phosphorus (as P) [mg/L] <0.02 <0.1 <0.2 <0.3 <0.4 Lakes & reservoirs <0.01 <0.025 <0.05 <0.1 <0.2 Total nitrogen (lakes, reservoirs, as N) [mg/L] <0.2 <0.5 <1.0 <1.5 <2.0 Copper (Cu) [mg/L] <0.01 <1.0 <1.0 <1.0 <1.0 Zinc (Zn) [mg/L] <0.05 <1.0 <1.0 <2.0 <2.0 Fluoride (as F-) [mg/L] <1.0 <1.0 <1.0 <1.5 <1.5 Selenium (Se) [mg/L] <0.01 <0.01 <0.01 <0.02 <0.02 Arsenic (As) [mg/L] <0.05 <0.05 <0.05 <0.1 <0.1 Mercury (Hg) [mg/L] <0.0005 <0.0005 <0.0001 <0.001 <0.001 Cadmium (Cd) [mg/L] <0.001 <0.005 <0.005 <0.005 <0.01 Chromium (Cr, hexavalent) [mg/L] <0.01 <0.05 <0.05 <0.05 <0.1 Lead (Pb) [mg/L] <0.01 <0.01 <0.05 <0.05 <0.1 Cyanide (CN) [mg/L] <0.005 <0.05 <0.2 <0.2 <0.2 Volatile phenol [mg/L] <0.002 <0.002 <0.005 <0.01 <0.1 Total petroleum hydrocarbon (TPH) [mg/L] <0.05 <0.05 <0.05 <0.5 <1.0 Anionic surfactant [mg/L] <0.2 <0.2 <0.2 <0.3 <0.3 Sulfide [mg/L] <0.05 <0.1 <0.2 <0.5 <1.0 Fecal coliform bacteria [number/L] <200 <2000 <1000 <2000 <4000 0 0 0 Source: GB383-2002

31. Wastewater discharge. Discharge of wastewater from construction sites is regulated under PRC’s Integrated Wastewater Discharge Standard (GB 8978-1996). Class I standards apply to discharges into Category III water bodies under GB 3838-2002. Class II standards apply to discharges into Categories IV and V water bodies. Class III standards apply to discharges into municipal sewers going to municipal wastewater treatment plants (WWTPs) with secondary treatment. No new discharge of wastewater into Category I and II water bodies is allowed. Table 1.8 shows these standards.

Table 1.8: Standards for Discharging Wastewater from Construction Sites Class I Class II Class III

Parameter Unit (for discharging into (for discharging into (for discharging Category III water Categories IV and V into municipal body) water body) sewer)

pH 6 ~ 9 6 ~ 9 6 ~ 9 SS mg/L 70 150 400 BOD5 mg/L 20 30 300 COD mg/L 100 150 500 TPH mg/L 5 10 20 Volatile phenol mg/L 0.5 0.5 2.0 NH3-N mg/L 15 25 — PO42- (as P) mg/L 0.5 1.0 — LAS (=anionic mg/L 5.0 10 20 surfactant) Source: GB 8978-1996

32. Solid waste. There are two categories of general industrial solid waste according to the “Standards for Pollution Control on the Storage and Disposal Site of General Industrial Solid Waste (GB 18599-2001 and amendment in 2013)” depending on leaching test results and pH values with Category I being less harmful than Category II. Category I standard shall be complied with for the handling and disposal of solid waste generated from the two proposed logistic parks.

F. Environmental Impact Assessment and its Administrative Framework

33. For land development plans and for specialized plans such as industry, transport and urban development, planning environmental impact assessments are required according to Chapter 2, Articles 7 and 8 of the Law on Environmental Impact Assessment (2003). The proposed logistics parks in Nanpeng and Tuanjiecun are located within two large logistics bases, namely Chongqing Railroad Logistics Base and Chongqing Roadway Logistics Base. Planning EIRs for these two logistics bases have been prepared. The Planning EIR for Chongqing Railroad Logistics Base was approved by the Chongqing EPB on 12 May 2009. The Planning EIR for Chongqing Roadway Logistics Base was approved by the Chongqing EPB on 21 February 2011.

34. Chapter 3, Article 16 of the PRC Law on Environmental Impact Assessment (2003)” stipulates that an environmental impact assessment is required for any capital construction project. Based on potential environmental impacts, the requirements are different and law specifies three categories, categories A, B and C depending the significance of the project’s environmental impacts.

35. The Directory for the Management of Different Categories of Construction Project Environmental Impact Assessment (2008) provides detailed classifications for 23 sectors and 198 subsectors based on the project’s size, nature (e.g., water resources development, agriculture, energy, waste management, warehouse storage), and environmental sensitivity (e.g., protected nature reserves and cultural heritage sites). In accordance with the Directory, the proposed project falls under the city infrastructure sector and warehouse storage subsector

20 and EITs are required for the two logistic parks.

36. According to the Water and Soil Conservation Law (29 June 1991, amended 25 December 2010), water and soil erosion plan shall be prepared for construction projects that cause significant soil erosion problems during construction. Soil and water conservation reports (SWCR) were prepared for the two logistics bases. Since the two proposed logistics parks are located within the logistic bases, the water and soil erosion plans for the logistics base cover the logistics parks. The Shapingba District Agriculture and Hydraulic Bureau approved the SWCR for Chongqing Railroad Logistics Base 1 February 2010 while the SWCR for Chongqing Roadway Logistics was approved by the Chongqing Hydraulic Bureau on 20 August 2014.

G. EIT Approval Status

37. In the PRC, the enforcement of environmental laws and regulations rests with the environmental protection authorities within each level of government. At the national level, the Ministry of Environmental Protection (MEP) is the regulatory, enforcement and supervision authority. The environmental management authorities at city level are the EPBs. Since Chongqing is a provincial-level municipality, its district EPBs also have the authority for enforcing environmental laws and regulations. These authorities are supported by their environmental monitoring stations and environmental protection research institutes.

38. The EITs were prepared by the Environmental Research Center of People’s Liberation Army Logistics Engineering Institute, which is a licensed domestic environmental institute. The EITs have been submitted to Shapingba EPB (Output 1) and Banan EPB (output 2) for review and approval. The EIT for Output 1 was approved on 28 October 2015 and the EIT for Output 2 was approved on 21 October 2015. Other project outputs are not subject to domestic environmental assessment requirements.

H. Assessment Area and Assessment Period

39. The assessment area, or the project area of influence, was determined based on potential impact distances of various environmental parameters, the assessment levels assigned by the local environmental authorities for various environmental media, and guidance provided in PRC’s Technical Guidelines for environmental impact assessment. The assessment area of the project is around the construction sites within the “footprint” of the permanent land take areas. The project area of influence is the area within 200 m of the properties’ boundaries.

40. The assessment period covers both the construction and operation stages of the project. The construction stage for the project has been estimated to take two to three years. The assessment period for the construction stage covers the duration of 2016 to 2018. The assessment period for the operation stage covers 20 years, with commencement of operation in 2018.

II. DESCRIPTION OF THE PROJECT

A. Project Rationale

1. Background

43. Chongqing is one of four provincial-level municipalities in the PRC and it is directly administered by the central government.8 Chongqing is located in the southwest of the PRC between the well-developed coastal and central parts and the less developed but resource rich western parts of the PRC. Due to its geographic location, Chongqing has been identified as the development center to lead the economic development for the vast western provinces.

44. Covering a total area of 82,400 km2 and with a population of 30 million, Chongqing is the largest direct administrated municipality, and comprises 19 districts, 15 counties, and 4 autonomous counties. It is an important transport hub, with a railway network of 1,450 km which includes five trunk lines and two branch lines, an expressway network of 1,900 km with two ring roads and eight trunk expressways, and an inland waterway network with a throughput of 145 million tons annually.

45. Located in the upper reaches of Yangtze River, Chongqing is the major transportation hub for highway, railroad, aviation and inland waterway transportation. By 2012, the total lengths of railroad, inland waterway and highway were 1,452 km, 4,331 km, and 120,728 km, respectively, and the total goods transported were 865 million tons. Chongqing ranked top for transportation infrastructure and second for the total goods transported amongst the four provincial-level cities.

46. Realizing the importance of logistics to the development of the city, Chongqing Municipal Government (CMG) has issued several guidelines and policies to promote logistics development. In 2009, CMG developed The National Logistics Centers Planning of Three Logistics Bases and Four Port Areas to outline the development of the three logistics bases of railroad, aviation and roadway as well as the four port areas. In Chongqing's 12th Five-Year Plan, the requirements of development of the three logistics bases and four port areas was further detailed with relevant policy assurances and development planning. Based on the current logistics development situation, CMG has identified the following key tasks for Chongqing logistics development as: i) improvement of transportation system; ii) establishment of various logistics centers; and iii) development of intelligent logistics information system.

2. Rationale

47. The proposed project seeks to improve the condition of the logistics network and services within Chongqing Municipality in the PRC to create an integrated and multimodal logistics system. It will focus on developing logistics parks and related infrastructure that has been identified as needed to further expand the logistics industry in Chongqing. It will also improve and upgrade the logistics services and information system, and support institutional capacity development of the implementing agencies.

8 The other three provincial-level municipalities in the PRC are Beijing, Tianjin and Shanghai.

3. Current Situation of Chongqing Logistics

48. The logistics sector in Chongqing has grown rapidly in recent years, highways and railroads have been upgraded significantly. More logistics centers have been built to accommodate rapid growing demands. The logistics facilities are still limited throughout the southwest region.

49. Existing Logistics Constraints: Presently most of the logistics terminals in Chongqing are located within the inner city region and ring road, resulting in a considerable amount of heavy freight traffic, mostly large trucks, moving on the inner city roads and causing traffic congestion and air pollution. Since April 1, 2014, the government has restricted the movement of big trucks in parts of the inner city area during certain times of the day. These restrictions are expected to increase in the future to alleviate growing traffic congestion in the inner city. Hence there is a need to move all logistics facilities to areas beyond the inner ring road.

50. Moreover the existing infrastructure of these logistics terminals in Chongqing is inadequate and an impediment to providing efficient logistics services. Many of these terminals cannot provide all the required logistics services in one location resulting in unnecessary freight movements which add to the problem. The logistics infrastructure also needs to be expanded and modernized to meet the growing requirements of the city, the Liangjiang New Area as well as the international rail corridor.

51. Logistics Information System. The logistics industry is relatively new in the PRC and information systems have not been fully developed. Most information systems implemented are isolated and nonstandard with very limited integration. For example, for the storage management in warehouses, there is an electronic information system to track the goods movement, but the system is only limited to individual warehouses or companies without public access. There are limited information systems for logistics operations for railroad, highway and inland waterway, but they are not connected to share the information. Almost all existing information systems are not open to the public or other transportation companies such as trucking companies or transport venders. Hence the transport companies cannot get freight movement information easily to effectively connect the transport venders with the goods that need to be shipped. Moreover, there is no platform open to the logistics venders and companies with the financial transition capability such as e-commerce services so that the logistics companies can conduct business more efficiently to reduce the current high logistics cost. The proposed project will try to establish a cloud based intelligent logistics information system to integrate the logistics information from different trades and sectors for information sharing, develop an information system for logistics companies and venders to get up-to-date goods movement information, establish a business transition platform for logistics companies to conduct business, and other business related services such as financial, taxation and customs management.

52. International Railway Corridor. The newly established Chongqing-Xinjiang-Europe International Railway Corridor offers a faster way to transport freight from the PRC to Europe than sea, but at only a fraction of the cost of air transport. This provides an effective logistics solution for shippers of high value cargo or moderately perishable cargo that cannot tolerate 40 days transit time by sea, but cannot afford the high cost of air transport. This corridor, with a total length of 11,200 kilometers (km), takes 14 days from Chongqing to Duisburg Germany through Lanzhou, Alashankou in Xinjiang and then Dostyk, Kazakhstan, through Russia, Belarus, and Poland to Duisburg, Germany. This new route is called the “New Silk Way,” and also the Third Euro-Asian Continental Bridge. It is the fastest and most convenient transport

23 route from the southwest, northwest and upper reaches of Yangtze River to Central Asia, West Asia and Europe.

53. Yangtze River Inland Waterway. In 2011, the State Council of the PRC endorsed a plan to accelerate the development of the Yangtze River and other inland waterways within 10 years. As part of the effort, the improvement of the Chongqing Yangtze River shipping center has been adopted as a national strategy. The Chongqing Municipal Government is promoting construction of the upper reaches of the Yangtze River shipping center with the goal of making Chongqing the main freight transport and logistics hub for the western part of the PRC.

B. Impact and Outcome

54. The impact of the project will be the improvement of logistics services in the Yangtze River Economic Development Belt and One-Belt One-Road region. The outcome of the project will be the demonstration of an efficient and integrated multimodal logistics system in Chongqing.

C. Project Outputs

55. Output 1: Chongqing transportation logistics park developed. This output will develop a park with three functional areas, namely (i) roadway logistics hub and city distribution center,9 (ii) logistics financial exchange center,10 and (iii) road-rail intermodal logistics hub. This will be the major terminal for Chongqing, located at Tuanjiecun within the Shapingba district, and at the starting point of Yu-Xin-Ou line. The completion of the logistics park will directly support and benefit the international rail corridor operations;

56. Output 2: Nanpeng logistics park constructed. This output will develop a park with three functional zones, namely (i) freight transfer area; (ii) customs inspection staging area, and (iii) type B (open access for other companies) bonded zone This will be the secondary terminal located at Nanpeng within the Banan district;

57. Output 3: Yangtze River inland waterway Ro-Ro transport demonstrated. This output will (i) build energy efficient roll/on-roll-off (Ro-Ro) ships (approximately 4000 tons each); (ii) procure alternate energy (e.g. liquefied petroleum gas) tractors and trailers for the Ro-Ro operation; and (iii) establish a Ro-Ro logistics information system. The Ro-Ro operation shall use Guojiatuo Port in Chongqing and Yinxingtuo Port at Yichang;

58. Output 4: Cloud Based Intelligent Logistics information system established. This output will develop a system including (i) information infrastructure and interfaces; (ii) logistics information sharing platform; (iii) logistics trade service platform; iv) logistics governance service platform; and (v) logistics value added services. The logistics information system will serve as the integrated logistics information system for the entire city of Chongqing and will serve as the platform for logistics information sharing, logistics operation, logistics trading, government clearances and logistics financial services; and

59. Output 5: Institutional capacity strengthened. This output will provide technical support for project implementation and training to improve the management capacity of the staff in the executing agency and the implementing agency and other related entities on logistics development and operation.

9 This will house a number of logistics companies and an information system to facilitate logistics transactions. 10 This facility will provide value added financial services such as insurance, financing, guarantees etc.

60. Outputs 1 and 2 will involve civil construction work as well as land acquisition and resettlement work. Output 3 will involve equipment purchase only and Output 4 will involve the information system development, implementation, trial operation and training. The summary of the project outputs or components is shown in Table 2.1:.

Table 2.1: Summary of Project Outputs

Output Unit Quantity Remarks 1. Chongqing transportation logistics park Civil Works m2 403,041 24 buildings Equipment set 1 2. Nanpeng logistics park – areas C and D Civil Works m2 152,947 7 buildings

Equipment set 1 3. Yangtze River inland waterway Ro-Ro transport Ro-Ro ship 3 Ro-Ro tractors 50 Ro-Ro trailers 150 Logistics information system 1 4. Logistics information system Infrastructure and interface Logistics information sharing platform Logistics trade service platform Logistics cooperation service platform Logistics electronic governance platform Logistics value added platform 5. Institutional capacity building Project implementation support Institutional capacity development Ro-Ro = roll-on/roll-off. Source: Project Preparatory Technical Assistance Consultant.

D. Contents of Project Outputs

1. Output 1: Chongqing Transportation Logistics Park

61. The proposed logistics park is located in Chongqing Railroad Logistics Base in Shapingba District. The base serves as the main railroad logistics center in the region to provide railroad and highway logistics services for PRC mainland and international trade to Europe via Yu-Xin-Ou international railroad line. The total area of the base is about 33 square kilometers. The construction of the infrastructure within the base has started and some enterprises have moved in to start logistics operation. Currently, it is estimated about 15 square kilometers of the base has been completed and is in operation, it is planed that the remaining part will be completed by 2020. The map of the logistics base with the defined functional areas is shown in Figure 2.1, which includes railroad trade and logistics area, railroad service area, railroad operation area, intermodal transport area, trade service area, railroad port tax free area, and railroad port service area. The proposed logistics park is located in the intermodal transport area with a total area of about 1265 mu or 0.85 km2. Due to the recent adjustment of logistics park land use planning, in which three sub-areas in the original planning were taken out from the project to be developed by Chongqing Railroad Logistics Base, the proposed project area has been reduced to 675 mu or 0.45km2. The updated logistics park is shown in Figure 2.2

62. Market analysis indicates that outbound goods are likely to include laptop computers, printers, other auxiliary devices made in Chongqing; mechanical, electronic, and other time sensitive high value products made in Wuhan, Sichuan, Guizhou area. Inbound goods may include cars, recycled aluminum, mechanical, electronic products. Domestic cargo may include industrial products like auto parts, electronics and various consumer goods.

63. The park is divided into three major functional areas including railroad highway intermodal transport area, roadway logistic hub and city distribution center, and logistics financial center. The intermodal transport area will serve as the interconnection between the railroad and highway, especially to serve to Yu-Xin-Ou railroad line. The roadway logistics hub and city distribution center will serve as the logistics service area for logistics trade and to transfer and supply goods to the urban area. The logistics financial center will host logistics financial service providers to provide value added services due to the implementation of logistics trade and logistics information system.

Figure 2.1: Chongqing Railroad Logistics Base

Figure 2.2: Chongqing Transportation Logistics Park

Figure 2.3: Site Plan of Chongqing Transportation Logistics Park

64. The site plan of the proposed logistics park is shown in Figure 2.3. There are a total of 24 buildings/facilities comprising warehouses, trade center, offices and driver housing. The details of each building are summarized in the following:

Roadway Logistics Hub and City Distribution Center

65. C1 – Logistics Trade Center: The building is the center piece of the logistics park to host logistics trade in conjunction with the implementation of the logistics information platform. It is expected that the implementation of the logistics trade center and the logistics information platform will support the transition from the current conventional, inefficient operating model to a modern information-based logistics operation with higher efficiency and reduced cost. The building is a four story steel truss structure with a total building area of 26,182 m2. The building also includes two levels of underground parking garage with an area of 17,044 m2.

66. C2 & C3 – Office Building: The two buildings are identical with the same building area of 11,525 m2. They are nine story reinforce concrete frame structures with a building height of 37.3 m. Both buildings have one underground story for parking garage. The buildings will provide office spaces to support the logistics trade center operation.

67. E1 to E4 – Transfer Warehouses: E1 to E4 are four Type III one story steel truss warehouse. E1 and E2 are two identical buildings with a building area of 9,077 m2. The building areas for E3 and E4 are 5,912 m2 and 7,388 m2, respectively.

68. G1 – Truck Repair Shop: a one story steel truss workshop for truck repair and maintenance in the designated Ro-Ro service area. The building area is 522 m2.

69. F1 to F3 – Driver Housing: three similar reinforced concrete dormitory buildings to service as lodging facilities for truck drivers. They are six story buildings with the building areas ranging from 30,483 to 30,989 m2.

Logistics Financial Center

70. D1 – Office Building: a nine story reinforced concrete frame structure with a building area of 27,340 m2, and an underground parking garage of 17,479 m2. The building will be the home for financial service providers for the logistics operation.

71. D2 – Office Building: a nine story reinforced concrete frame structure with a building area of 27,340 m2. It is similar to D1, but without the basement. The building will be the home for financial service providers for the logistics operation.

72. D 3 & D4 – Warehouse: two identical two story reinforced concrete frame structures with a building area of 8,581 m2, respectively.

Roadway-Railroad Intermodal Logistics Center

73. A1 – Office Building: a nine story reinforced concrete frame structure with a building area of 23,927 m2, and an underground parking garage of 7,886 m2.

74. A2 & A3 – Driver Housing: two identical reinforced concrete dormitory buildings to serve as lodging facilities for truck drivers. They are five story buildings with a building area of 8,630 m2, respectively.

75. A4, A5 and A7 – Warehouses: Type III steel truss warehouses. A4 and A5 are one story warehouse with building areas of 12,214 and 12,765 m2, respectively. A7 is a one story building with the building area of 5,749 m2.

76. A6 – Repair Shop: a two story reinforced concrete frame structure with a building area of 5,040 m2 for truck repairs and maintenances.

77. B1 & B2 – Warehouses: two identical one story Type III steel truss buildings with the building area of 19,593 m2, respectively.

78. In addition, the work will also involve the site development for roads, utilities, landscape, and other associated facilities. The details of each building are summarized in Table 2.2.

Table 2.2: Summary of Chongqing Transportation Logistics Park Buildings Construc- Building Building Footing Building Functional tion Area Classifica- Area Area Structural Height Area Sub-Area (m2) Area (m2) Bid No Description tion (m2) (m2) Type Story (m) Chongqing Logistics Trade Logistics trade Multi- Center (C ) 43,125 65,730 C1 center function 26,182 10,763 Steel Truss 4F/-2F 23.4 Underground parking garage 17,044 -2F C2 Office building Office 11,252 1,191 RC Frame 9F/-1F 37.3 C3 Office building Office 11,252 1,191 RC Frame 9F/-1F 37.3

Roadway Freight Transfer Transfer and City Distribution (E) 66,325 31,455 E1 warehouse Type III 9,077 6,687 Steel 1 12 Transfer E2 warehouse Type III 9,077 6,687 Steel 1 12 Transfer E3 warehouse Type III 5,912 5,912 Steel 1 12 Transfer E4 warehouse Type III 7,388 7,388 Steel 1 12 Drop-and-Haul Area (G) 56,681 552 G1 Truck repair shop Workshop 552 522 Steel Frame 1 6 Logistics Trade Supporting

Roadway LogisticsHub Roadway andCity DistributionCenter Area (F) 46,334 91,954 F1 Driver home Dormitory 30,483 5,203 RC Frame 6 23.1 F2 Driver home Dormitory 30,989 5,203 RC Frame 6F/-1F 23.1

F3 Driver home Dormitory 30,483 5,203 RC Frame 6 23.1

Logistics Financial Center (D) 65,114 89,322 D1 Office building Office 27,340 3,865 RC Frame 9F/-1F 38.5 Underground parking garage 17,479 -1F

Center D2 Office building Office 27,340 3,865 RC Frame 9F/-1F 38.5 D3 Warehouse Type III 8,581 7,547 RC Frame 1 12

Logistics Financial Logistics D4 Warehouse Type III 8,581 7,547 RC Frame 1 12

Roadway-Railroad Intermodal 104,082 84,841 A1 Office building Office 23,927 3,396 RC Frame 9F/-1F 39.2 Underground Logistics Area (A) parking garage 7,886 A2 Driver home Dormitory 8,630 1,750 RC Frame 5 20.1

A3 Driver home Dormitory 8,630 1,750 RC Frame 5 20.1 A4 Warehouse Type III 12,214 12,214 Steel Truss 1 12

Center A5 Warehouse Type III 12,765 12,765 Steel Truss 1 12 A6 Repair Shop Workshop 5,040 1,727 RC Frame 2 11.8

RailroadIntermodal Logistics

- A7 Warehouse Type III 5,749 2,363 Steel 2 11.8 Roadway-Railroad Intermodal 68,431 39,186 B1 Warehouse Type III 19,593 9,746 Steel Truss 1 12

Rodway Logistics Area (B) B2 Warehouse Type III 19,593 9,746 Steel Truss 1 12

Subtotal = 24 403,041 ###### RC = Reinforced Concrete, LTL = Less Than truck Load (Source: PPTA Consultants)

79. In addition to the civil works, the component also involves the purchase of the equipment to be used in the logistics park, including forklifts, crane and container lift. The summary of the equipment list is shown in Table 2.3.

Table 2.3: Summary of Equipment for Chongqing Transportation Logistics Park No Description ype & Spec Unit Quantity Remark 1 Container transport truck 20 foot truck 290 HP ea 30 40 foot truck 430 HP ea 100 2 Urban distribution truck Electric truck L = 9 m ea 50 Gas truck L = 9 m ea 50 3 Forklift 1-5 ton ea 60 1 ton forklift ea 40 2 ton forklift ea 77 3 ton forklift ea 10 Container lift and transport Load > 45 ton, Lift 4 truck L = 40 ft ea 1 Ht > 14.7 m Load > 8 ton, Lift Ht 5 Container stacking machine L =40 ft ea 1 > 6 containers 6 Rack 1 - 1.5 ton ea 13250 Specs to be 7 Sorting equipment set 1 determined

(Source: PPTA Consultants)

2. Output 2: Nanpeng Logistics Park

80. The proposed logistics park is located in Chongqing Roadway Logistics Base in Banan District. It serves as the main logistics center in the region and provides logistics services to southeast and southwest two major export routes to Southeast Asia and the sea ports in the coastal area such as Shanghai. The total area of the base is about 35 square kilometers. The construction of the infrastructure within the base has started and some enterprises have moved in to start logistics operation. The logistics base is shown in Figure 2.3. The proposed Output 2 is located in the south of the base with a total area of about 800 mu or 0.54 km2.

81. The proposed Nanpeng Logistics Park is specially designed with the function of receiving and redistributing urban use goods. Goods may include production tools, rubber products and articles for daily use like slippers and towels and some snacks from ASEAN countries like dried mangos. Due to historical reasons, there are many small and scattered urban goods and merchandises distribution centers within the city center Heavy freight trucks have to come to the city center to deliver the goods and some of them have to park on the streets to unload the goods, contributing to traffic congestion and air pollution in the urban area. The proposed project will help the municipal government to establish th out-of-city logistics distribution centers avoiding heavy trucks coming to the center city area. The heavy trucks will bring the urban goods and merchandises to the new logistics/distribution centers, unloaded and sorted, and the urban goods will be transported and delivered by regular small trucks and distribution vehicles.

Figure 2.4: Chongqing Roadway Logistics Base

82. The Nanpeng logistics park, as shown in Figure 2.4, is divided into four areas including A – Freight Transfer, B – City Distribution, C – Customs Freight Transfer Area. And D – Type B Bonded Zone. Areas A and B will be constructed using domestic funding. Area A, the upper left corner with an estimated area of 250 mu, is currently under construction and the construction will be completed in 2016. The area will serve as the freight transfer area. Area B, the upper right corner with an estimated area of 250 mu, will serve mainly as the city distribution service and storage and it is planned to be constructed in later stage with the domestic funding in the future. Areas C and D, the lower rectangular area, is the proposed project and it will be implemented under this project and financed by ADB funding. The area will be used as the customs service area to include Type B Bonded Zone, Customs Inspection Staging, Freight Transfer Area, and Office Area, as shown in Figure 2.5.

Figure 2.5: Layout of Nanpeng Logistics Park

83. The site plan of the proposed part of the logistics park C & D is shown in Figure 2.6. There are 7 buildings in this part of the logistics park, and the building details are summarized in the followings:

84. Building #1 – a one story steel truss warehouse (Type III) with a total building area of 22,200 m2 in Freight Transfer Area to serve as the facility to transfer the large truck freights to smaller trucks for local transport and delivery.

85. Building #2 – a two story steel truss warehouse (Type III) with a total building area of 13,597 m2 in the same area and same functions as Building #1.

86. Building #3 – a two story reinforced concrete frame office building with a building area of 473 m2 in the Customs Inspection Staging Area.

87. Building #4 – a one story steel truss warehouse (Type III) with a building area of 3,215 m2 in the customs inspection staging area.

88. Building #5 – an eight story reinforced concrete frame office building with a total building area of 14,340 m2 next to the Type B Bonded Zone. The build also includes an underground parking garage with a building area of 3,959 m2.

89. Building #6 – a two story steel truss warehouse (Type III) with a building area of 4,844 m2 in the Type B Bonded Zone.

90. Building #7 – a two story steel truss warehouse (Type III) with a building area of 94,278 m2 in the Type B Bonded Zone.

Figure 2.6: Site Plan for Areas C & D

91. The construction of the park will also involve the development of roads, utilities, landscape, and other associated infrastructure. The details of each building are summarized in Table 2.4.

Table 2.4: Summary of Nanpeng Logistics Park Buildings Functional Constructi Building Building Building Footing Structural Height Area Sub-Area on Area Area (m2) Bid No Description Classificatio Area Area Type Story (m)

Transfer warehouse 66,484 35,796 #1 Warehouse Type IV 22,200 22,200 Steel Truss 1 9

#2 Warehouse Type IV 13,597 6,473 Steel Truss 2 15 Area

Freight Transfer Transfer Inspection staging area 66,484 35,796 #3 Office building Office 473 237 RC Frame 2 6

Area #4 Warehouse Type III 3,215 3,215 Steel Truss 1 9

Customs

Inspection Staging

Tax Free Zone 137,029 113,462 #5 Office building Office 14,340 3,959 RC Frame 8F/-1F 37.8

Underground parking garage 3,959

#6 Warehouse Type III 4,844 2,176 Steel Truss 2 15

Free Zone Type B Tax

#7 Warehouse Type III 94,278 48,229 Steel Truss 2 21

Subtotal = 7 152,947 90,447 RC = Reinforced Concrete, LTL = Less Than truck Load (Source: PPTA Consultants)

92. In addition to the civil works, the component will also involve the purchase of equipment to be used in the park, including forklift, crane and container lifts. The summary of the equipment is shown in Table 2.5.

Table 2.5: Summary of Equipment for Nanpeng Logistics Park No Description ype & Spec Unit Quantity Remark 1 Container transport truck 20 foot truck 290 HP ea 20 40 foot truck 430 HP ea 80 2 Urban distribution truck Electric truck L <= 9 m ea 50 Gas truck L <= 9 m ea 50 3 Forklift 1-5 ton ea 30 1 ton rack cart ea 10 2 ton electric forklift ea 18 3 ton gas forklift ea 2 Container lift and transport Load > 45 t, Lift Ht > 4 truck L = 40 ft ea 1 14.7 m Load > 8 t, Ht = 6 5 Container stacking machine L = 40 ft ea 1 containers 6 Rack 1 - 1.5 ton ea 10000 Spec to be 7 Sorting machine ea 1 determined

(Source: PPTA Consultants)

3. Output 3: Yangtze River Drop-and-Haul Inland Waterway Transport

93. Inland waterway transport is one of the most cost effective transport types used widely in developed countries. Inland waterway transport in PRC is less developed with low market shares. The central government has developed strategies to promote inland waterway transport. The Ro-Ro transport along Yangtze River is one of the pilot projects initiated by the Ministry of Transportation. The construction of Three Gorges Dam has improved the inland waterway transport condition significantly due to the wider and deeper navigation channel from Yichang to Chongqing as well as the upper reaches of the Yangtze River and other waterways. However, Three Gorges Dam, limits the passing capacity of cargo ships. This output will support the purchase or manufacture of three ro-ro ships and additional tractors and trailers. The project will also develop and integrate the inland waterway transport logistics information system for Chongqing Ship Company. The summary of the proposed project elements is shown in Table 2.6.

Table 2.6: Summary of Drop-and-Haul Output Type & No Decryption Spec Unit Quantity Remark 1 Roro-ship 4765 ton ea 3 2 Drop-and-haul tractors LNG 280 kw ea 50 3 Drop-and-haul trailers 3 axle container trailer L = 12.4 m ea 50 3 axle semi-open trailer L = 14.6 m ea 50 3 axle open trailer L = 14.6 m ea 50 4 Logistic information system ea 1 DNH truck management system Roro and DNH TMS management Financial management system WMS storage management system Sorting & goods management GPS/GIS real time monitoring e-commerce system

(Source: PPTA Consultants)

94. A strong capacity development shall be included during the project implementation to assist Chongqing Ship Company to effectively implement the Ro-Ro output.

4. Output 4: Cloud Based Intelligent Logistics Information System

95. The logistics cost in the PRC is much higher than in most the developed counties. One of the factors for higher logistics cost is the low level of the application of information system. For the logistics industry in the PRC, there is no industrial standard information system and there is no reliable and up-to-date logistics information sharing among different parties in the industry. There are some logistics information systems, but most of them are limited to individual operation and system within each enterprises or even single operation such as warehouse operation, shipping operation, and express mail operation.

96. The government has recognized the need to improve and integrate the logistics information system for better operation efficiency and cost saving, and initiatives program to push for information system improvement. The proposed logistics information system is highly anticipated by the government and some of the governance functions are provided to meet government expectations.

97. Based on the needs from the implementing agency and requirements from the government, the framework of the logistics information system has been developed. The information system will include six fundamental modules:

98. Information infrastructure and interfaces – this is the overall framework of the information system to host and connect each operational module from the different functional areas such as interfaces for logistics operation, government governing, logistics trade and logistics financial service.

99. Logistics Information Sharing Platform - The module is designed for logistics information sharing among transportation companies, logistics parks, publics, logistics companies to promote and improve logistics operation. The module can be expanded in the future to include more logistics subsystem. At the present time, two subsystems include:

100. Sector service platform - to provide general logistics information such as information for goods, warehouse, vendors, to the public, transportation companies and enterprises.

101. Logistics park platform - to provide a platform to connect all logistics park in the area for information sharing and logistics park operation. The logistics parks may have their own information system for the park internal operation, and the internal system can be linked to the public logistics park platform.

102. Logistics Trade Service Platform - The module is designed to integrate and link different trade logistics information system and to have information sharing. The module can be expended with more trades added in the future. Currently, there is one subsystem under this module.

103. Highway logistics information system - the information system is mainly for Chongqing Highway Company for their logistics operations for goods transported by highways. The system is designed based on their existing information system with upgrade and linkage to the overall information system.

i) Intermodal logistics platform – the platform will provide logistics information system for the intermodal logistics operation between the roadway and railroad transport. ii) Logistics Cooperation Service Platform - The module is designed to integrate information system from different logistics services, and to provide platform for closer cooperation among enterprises, suppliers, transportation companies, etc. Currently, there are two subsystems and more subsystems can be added in the future. iii) Logistics cooperation platform - the system is to provide a platform for information sharing and to connect the parties involved the goods distribution directly. iv) Urban distribution platform - the subsystem is for the logistics operations for urban and rural distributions and to provide a platform for suppliers, venders, trucking companies to improve and streamline the goods distribution operation v) Logistics Governance Services - The module is to provide a platform for government agencies to governing and provide assistance to the logistics operation. There are several subsystems: vi) Governing services - the subsystem is enable for the relevant government agencies to monitor, administrate and control the logistics operation vii) Sector policy assistance - the subsystem is to allow the government to apply assistance in the logistics sector viii) Sector credit service - the subsystem is to allow the government to carry out sector credit service to control and regulate the logistics operation ix) Logistics analysis and decision making - the subsystem can provide logistics sector analysis and help the authority to make or modify policies to ensure the healthy development of the logistics sector x) Logistics Value Added Services - The module will have the function to provide financial and related services to help the logistics operation. The subsystems

include: xi) Insurance - the subsystem can incorporate insurance companies to provide insurance services to trucking companies and other logistics operators xii) Financing - the subsystem can incorporate banks and financial institute to provide financing services for the logistics operators such as truck drivers. xiii) Financial services - the subsystem can incorporate accounting companies to provide financial services for the logistics operators. xiv) Cloud and software services – the subsystem can incorporate software and IT professionals to provide information services to the logistics operators. xv) O2O service - the subsystem will have the capability to provide Online-Offline (O2O) services for logistics operators.

104. The proposed information system covers the wide range of aspects for logistics sector from individual logistics operations, to governance and financial services. The system shall be developed step-by-step with a sound development and implementation plan. It is important that the client establishes and retains a professional team with in-depth knowledge of the logistics information system to manage and develop the system. The summary of the proposed logistics information system is shown in Table 2.7:

Table 2.7: Summary of Chongqing Cloud Based Intelligent Logistics Information System No Description Remark A Infrastructure & Interface A1. Infrastructures & facilities system housing, servers, hardware, etc. A2. Application support platform service framework to hostsubsystems A3. Interface for governance B Logistics Information Sharing Platform B1. Sector service platform B2. Logistics park platform C Logistics Trade Service Platform C1. Roadway logistics information C2. Intermodal logistics platform D Logistics Cooperation Service Platform D1. Logistics service platform D2. City-rural distribution platform E Logistics Electronic Governance Platform E1. Governance service system E2. Sector policy aid system E3. Sector credential system E4. Logistics analysis & decision making F Logistics Value Added Platform F1. Insurance service system F2. Enterprise financing service system F3. Logistics financial service system F4. Cloud service system F5. O2O service system Online to offline services (Source: PPTA Consultants)

5. Output 5: Capacity Building

105. The capacity development and institutional strengthening output will include: (i) project management and procurement; (ii) environment monitoring; (iii) resettlement monitoring, (iv) gender monitoring, (v) EMS capacity building.

E. Special Features

106. The project will help to upgrade the logistics infrastructure and information systems in Chongqing and it is one of the key logistics projects in the area. The project has several innovative features:

➢ Logistics Information System - The cloud technology has developed rapidly in recent years. The proposed project will make use of new technology to develop a logistics information system to completely change conventional logistic operations, which is mainly based on partnership and long term working relationships with limited information sharing. The proposed cloud based intelligent logistics information system will first help to upgrade and improve the existing separated and isolated logistics operation information system, and then more importantly provide a platform for all parties in the logistics industry for information sharing, direct cooperation, and doing business using the available new technologies such as e-commerce. The system will allow the transportation companies, suppliers, warehouses operators, logistics parks, goods and receivers to have a platform to do business together. Successful development and implementation of the logistics information system will improve the efficiency of logistics operations, reduce logistics cost, increase business volume and introduce more market competition in the logistics industry.

➢ Ecological Logistic Park. The design of the two logistics parks will be based on the principles of ecological and environmental protection, energy and water conservation. Administration buildings and the information exchange center building of the logistics parks will be designed and constructed in accordance with the Green Building Standard requirements. In addition, the two logistics parks (Output 1 and Output 2) will aim to achieve ISO14001 environmental management and ISO9001 quality management system certification within one year of project completion. Eco-logistic features are described in section F below.

➢ Public-Private-Partnership (PPP). The logistics industry involves a wide range of parties from both public and private sectors such as government agencies, state and city owned transport and logistics companies, private transport and logistics companies, public and private financiers. There is big potential to include PPP development during the project implementation. A special capacity development component of PPP has been included in the project preparation stage to conduct PPP study and assessment, and to develop the PPP implementation roadmap for the project implementation stage. The PPP development could be incorporated in the logistics park operation, cloud based logistics information system development; and Ro-Ro inland waterway transport.

F. Eco-logistics Features of the Project

107. Design Approach. In order to minimize the environmental impacts of the two logistics parks, a range of features have been incorporated into the project design. These features are included in the FSRs for the two logistics parks and more detailed work will be carried out during the detailed design stage. Most of the approaches described below will be applicable to both

39 logistics parks.

1. Specific Features of Eco-design for Output 1

108. LEED standard will be adopted for the information exchange center building of Output 1 which will be one of the first buildings to be constructed at the logistics park. In addition, the administrative building will be designed and constructed according the Chongqing Green Building Standard, which is the PRC standard adopted in Chongqing. The main eco-design features for Output 1 are shown in Figures 2.7 and 2.8.

Figure 2.7: Illustration of Eco-logistics Features of Output 1 (part 1)

Figure 2.8: Illustration of Eco-logistics Features of Output 1 (part 2)

109. Route optimization. Within the logistics parks, a model was used to simulate the movements of the freight trucks. Key parameters, such as minimum energy consumption, shortest routes, and shortest transportation time, were considered during the optimization. It was concluded that ring-type layout is the most desirable option to ensure the smooth efficient movement within the logistics park. Clockwise ring traffic patterns will be adopted to reduce impacts of left turns. Figure 2.9 is an illustration of the optimized routes for entering and existing trucks for Output 1.

Figure 2.9: Optimized routes for loaded freight truck and empty truck of Output 1

110. Eco and energy conservation considerations. Earthworks will be optimized by using the elevation difference of the project site in the overall layout planning. The orientation of the buildings has been carefully considered and optimized to achieve maximum natural lighting and ventilation. Breathing and water permeable floor materials will be specified and green spaces maximized within the logistics park (Figure 2.10).

Terrain Analysis Energy Conservation Analysis Permeable Parking Surface Figure 2.10: Site Terrain analysis (left), energy conservation analysis (center) and parking lot demonstration (right)

111. Landscaping. Green spaces will be located throughout the logistics park and evenly districted. A variety of plants adapted to Chongqing climate conditions will be specified in the landscaping proposals. Advanced planting technologies will be used to improve the rate of survival. Grass and plants are also planned on rooftops of buildings to maximize green space, to improve the local environment and to reduce cooling requirements through improved insulation. Plants with strong absorptive capability of CO2, CO, CHx will be considered first (Figure 2.11).

Figure 2.11: Conceptual landscaping designs of the logistics parks

112. Green Building. Main buildings of the logistics park will follow green building design principles and meet the requirements of Chongqing Green Industrial Building Technology and Evaluation Guideline. The information exchange center building will be LEED certified while the administrative building will obtain Chongqing Gold certification rating as well as meeting the national two stars green building requirements. Key design features include:

i) Natural lighting and ventilation. Place doors and windows at locations that can obtain most natural light and ventilation; locate restrooms close to air outlets of the buildings; avoid large depth of rooms only with one side facing sunlight; Install windows that can be opened externally; and add windows at staircases. ii) External walls of buildings: Expect for structural steel reinforced concrete, sintered hollow bricks with good temperature preservation and heat insulation will be used as materials for external walls. iii) Roof materials: Steel reinforced concrete roofing will use XPS board as heat insulation layer, which is placed above water proof layers to form an inverted roof. Green roofs will also improve insulation and contribute to reduced cooling requirements. iv) Doors and windows: control the ratio of windows and walls and lower heat transfer coefficient by taking the following measures:

➢ Use plastic (aluminum composite material) as window frame material; ➢ Use material with low heat transfer coefficient as external window glass (sealed double layer glass with hollow inside); ➢ The air tightness of external windows shall meet the requirements of Class 4 window under Classification and Testing of Air Tightness, Water Tightness and Wind Pressure Resistance of External Door and Windows. Air tightness of transparent curtain wall shall meet the Class 2 requirements of Building Curtain Wall (GB/T21086-2007).

v) Natural lighting and shading. Maximizing the use of natural lights can not only save energy but also meet basic comfort requirements. South light is the main natural lighting resource for buildings. However, too much sunlight can cause discomfort and

increase air-conditioning costs. Window-blinds will be used to adjust sunlight entering the buildings to maximum energy efficiency. Some examples of shade designs are illustrated in Figure 2.12.

Figure 2.12: Building Energy Conservation Demonstration

113. Electric energy saving. Energy efficient technology and approaches will be used to reduce electricity consumption by the logistics facility.

i) Substation and electric wire. Substations of the electricity supply systems for the logistics park will be located close to the load center to shorten distribution distance and reduce transmission losses; energy efficient transformers, such as SCB10 type of transformer, will be used; the load for transformer will be controlled at the optimal range at 75-85% of the design capacity to save energy; electric wire material with low resistance will be chosen to also reduce transmission losses. ii) Increase power factor: Electric equipment with high power factor compensated capacitors will be chosen; combination of distributed situ compensation and low pressure cabinet centralized compensation will be utilized to increase power factor. iii) Lighting energy conservation: Natural lighting and artificial lighting will be combined for maximum energy efficiency. Reactive power compensation lights in public buildings and electric ballasts for fluorescent lamps will be selected. Outdoor lighting will use program control or light, sound switches. LED energy efficient light systems will be specified. iv) Heating, ventilation and air-conditioning. Energy efficiency of air-conditioning will meet the Class II requirements of AC Energy Efficiency Limited Value and Efficiency Class (GB12021.3-2010). Fans will comply with requirements of Energy Efficiency Limited Value and Class of Fans (GB19761-2009).

114. Water Conservation. The “sponge city” concept will be applied to the design of stormwater management systems at the logistics parks. Two stormwater collecting ponds are strategically located in the logistics park based on the local terrain (Figures 2.13). The collected stormwater will be used for vehicle washing and irrigation. Individual water meters will be installed to monitor water usage by different functions and areas.

□ ฀ ฀ ฀฀ Figure 2.13: Stormwater Collecting Ponds based on Site Terrain (left) and the Layout (right) for Output 1

2. Specific Features of Eco-design for Output 2

115. Part of the Output 2 will be Type B bonded zone, which will be under the close supervision of Chinese Customs, which has strict building design, landscaping and decoration requirements for security reasons. Some designs, such as landscaping on roof tops, will not be allowed. However, many eco-friendly features still can be incorporated in the design for Output 2. For example, the administration building will also be certified as Green Building according to Chongqing Green Building Standard. The eco-design features for Output 2 are summarized in Figure 2.14 and described in more detail in the paragraphs that follow.

(D Permeable Surface @ LED Lighting @ Reassemble Steel Structure @ Natural Lighting and Ventilation Roof @ Green Office Building Certification @ Intelligent Management Syste (J) Solid Waste Collection Point @ Sponge Grass Are ® Dripping and Sprinkler @ Stormwater Collection System @ Eco Parking Lot @ Energy Efficient Double Laye Warehouse

Figure 2.14: Illustration of Eco-logistics Features of Output 2

116. Route optimization. Similar to the approach for Output 1, a model was used to simulate the movements of the freight trucks inside the logistics facility. Figure 2.15 is an illustration of the optimized routes for entering and existing trucks for Output 2 facility. The external roads are right angled intersections in the South and North directions to ensure the logistics park internal vehicle routes are the shortest and most efficient. With the optimized route design inside the park, the vehicle travel distance is reduced by 20%.

Figure 2.15: Routes Analysis of Entering and Existing Trucks for Output 2

117. Building orientation. Chongqing Banan District is in the subtropical humid monsoon climate area with a characteristic high temperature, low sunlight, long monsoon season, high humidity, more cloud/fog days, low frost and snow, and low wind speed. The windward side of buildings is southwest and the leeward side is northeast. The layout of offices will be orientated to face south to get more natural light and optimal shading to save energy (Figure 2.16).

Figure 2.16: Building orientation consideration to conserve energy

118. Maximize green area. Within the park, green areas are incorporated in the design of the park. Over 10% of the park is green area comparing to the required 5%. In addition, water permeable materials are used in the park. Hard green areas (grass and brink combination) are designed for parking and walking areas.

Figure 2.17: Green Area Layouts (top) and Permeable Surfaces (bottom)

Figure 2.18: Green Area Design Illustration

119. Green building energy conservation. The administrative building in the Nanpeng logistics park will be certified as Green building based on the Chongqing Construction Standard-

Design Standards of Public Building Energy Conservation (Green Building) (DBJ50-052-2013). The building design parameters and energy consumption of the administration building and the reference building (‘business as usual’ building) are shown in Table 2.8 and Table 2.9, respectively.

Table 2.8: Energy Consumption of Administration Building

Energy Consumption Unit Area Energy Consumption Energy Type (kWh) (kWh/m2)

AC Electricity Consumption 914500 89.37 Heating Electricity Consumption 314350 30.72 Total 1,228,850 120.09 Source: FSR supplemental information from DI

Table 2.9: Energy Consumption of Reference Building

Energy Consumption Unit Area Energy Consumption Energy Type (kWh) (kWh/m2)

AC Electricity Consumption 907,951 88.73 Heating Electricity Consumption 326,936 31.95 Total 1,234,887 120.68 Source: FSR supplemental information from DI

120. A comparison of values shows that the annual energy consumption per unit area of the designed building is slightly less than the reference building. The energy saving rate of Green Building is 50.24% comparing to business as usual case.

121. Roof materials with a high capacity of ventilation and lighting can increase the air ventilation of the warehouse as well as lowering the room temperature. Hot air will be vented out through the roof vents which will reduce indoor temperature. Natural ventilation and lighting reduce the usage of mechanical equipment and thus reduce energy consumption (Figure 2.19).

Figure 2.19: Natural Lighting and Ventilation Design of the Warehouse

122. Other energy conservation features. Similar to Output 1, many energy conservation principles have been incorporated in the eco-design for Output 2. They are summarized as follows:

i) Approximately 940 LED light bulbs will be used in the logistics park with an estimated electricity saving is 1.03 million kWh per annum compared to regular light

bulbs; ii) natural ventilation system will be maximized and energy saving is 60,000kWh per annum compared to normal logistics facility designs; and iii) energy efficient air conditioning units will be installed with energy savings of 180,000 kWh per annum compared to regular A/C units.

123. Water conservation. Water saving devices, such as water efficient toilet flashing, automatic on and off faucets, will be utilized and they will save tap water use by 1,680 tons per annum; over 12,000 m2 of sponge infiltration grassland will be built and two stormwater storage ponds (total capacity of 1,000 m3) will be built (Figures 2.20 and 2.21). These measures will result in a 7,000 m3 reduction in stormwater discharge, the water will be utilized for irrigation and washing vehicles.

Figure 2.20: Stormwater collection ponds at Nanpeng Logistics Park (Output 2)

Soft Green Area Hard Green Area Stormwater Pond Figure 2.21: Green Ground Planning in the Logistics Park

3. Environmental Management System (EMS)

124. After the two logistics parks (Outputs 1 & 2) become operational, EMS will be developed for each of the two logistics parks in accordance with the international EMS standard ISO 14001.

PDCA (plan-do-check-act) principles will be incorporated in the EMS and practiced at the facilities. Appropriate staff and training will be provided for the facility personnel. Specific targets and continuous improvement goals will be set.

G. Associated Facility

125. SPS (2009) defines associated facilities as “facilities that are not funded as part of a project but whose viability and existence depend exclusively on the project, or whose goods or services are essential for successful operation of the project.” In this context, this project has no associated facilities.

III. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA)

126. The environmental baseline data covers Shapingba District of Chongqing where Chongqing Transportation Logistics Park (Output 1) is located and Banan District of Chongqing where Nanpeng Logistics Park (Output 2) is located. The description of the pre-project or baseline environment (biophysical and socio-economic) establishes the environmental setting within which the proposed project will be implemented and the environmental values which will be changed (either positively or negatively) by the project. The baseline data for the two logistics parks is presented in this section of the IEE. The baseline data for Shapingba, where Output 1 is located, will be presented first followed by the baseline data for Banan, where Output 2 is located. Part of the Output 2 site was cleared and surfaced prior to the PPTA. A compliance audit has been conducted for this site

A. Environmental Setting of Chongqing

127. Chongqing Municipality is on the southeast edge of the Sichuan Basin, adjacent to Hubei, Hunan and Guizhou Provinces in the southwest region of the PRC. The Chongqing Municipality covers an area of 82,403 square kilometers with a total population of 29.5 million. There are 14 Districts and 22 Counties in the municipality. The main rivers are the Yangtze, Jialing, Wu Jiang, Fujing and Qijiang and Daning Rivers. The Yangtze River passes through Chongqing from the southwest to the northeast. The Wu Jiang River runs into the Yangtze at Chongqing from the south having passed through many districts and counties. Jialing River joins the Yangtze in Chongqing from the northwest direction.

Output 1g Output 2 Site 1)Site

Figure 3.1: River Systems in Chongqing

128. Chongqing Transportation Logistics Park (Output 1) is located in Shapingba District of Chongqing while Nanpeng logistics park (Output 2) is located in Banan District. The river systems in Chongqing, Banan and Shapingba districts and the locations of the two logistics parks are shown in Figure 3.1.

B. Environmental Baseline of Chongqing Transportation Logistics Park Site (Output 1)

1. Geography and Topography

129. The Chongqing Transportation Logistics Park (Output 1) is located near Tuanjiecun inside the Chongqing Railroad Logistic Base in Shapingba District of Chongqing. Shangpingba District is located in the west of downtown Chongqing. It is 24.8 km from Chongqing Jiangbei International Airport. The District is bordered with Beipei District in the north, Jiulongpo District in the south, Yubei District, Jiangbei District, Yuzhong District in the east and Pishan County in the west.

130. The highway transportation network is well developed around the Chongqing Railroad Logistic Base. Yusui Highway passes through the east part of the base and Xiangyu Railway passes through the base as well. The Chongqing Container Center is located in the logistics base. Water transportation from Jialing River to Yangtze River is well established. The mid-ring expressway passes through the west side of the logistics base.

131. Shagpingba District located in the west of Shapingba anticline is shallow hilly landforms alternating with platforms and slopes. The bedrock structure is simple but impermeable. Groundwater does not move freely in the area. No major faults or fracture structures were observed in the project area. The following photos, Figure 3.2, show the topography of the proposed project site.

Figure 3.2: Terrain Photos of Chongqing Transportation Logistics Park Site (Output 1)

132. The land of the project site is shallow hilly landform. The ground elevation at the site is between 270m to 300m with an elevation difference of 30m. The slope of planned roads in the area is less than 3%. According to the [People’s Republic of] China Seismic Intensity Classification Map (1994 version), the seismic intensity of the site is Class 6, which is considered low for seismic hazard. The structures on the site shall be designed to comply with the requirements for Class 6 seismic intensity. The project site is low risk for geological hazards and no landslide, collapse, mud or rock slide, surface collapse have been recorded in the project area.

2. Meteorology and Climate

133. Shapingba District belongs to the Sichuan Basin South Yangtze River Valley area of subtropical humid monsoon climate with mild climate and it is on the subtropical high belt with many days of humid, calm, cloudy and low daylight. Due to the impact of the East Asian monsoon, the climate is mild with abundant rainfall. It has warm winter, early spring, long summer and short autumn. It rains frequently in early summer, and hot and dry in middle summer, with frequent rain in autumn. The frost free period is long. The meteorological conditions of Shapingba are summarized in Table 3.1.

Table 3.1: Local Meteorological Parameters in Shapingba District

Parameter Description

Temperature Average: 17.8°C Highest temperature: 42.2°C Lowest temperature: -1.8°C Precipitation Average precipitation: 1,151.5 mm Maximum daily precipitation: 191.7 mm Frost free days 320-350 days

Parameter Description

Average Humidity 79% Wind direction and speed Predominant wind direction and frequency: NNW 29% Annual average wind speed: 1.5 m/s Annual static wind frequency: 33% Special meteorology Average annual foggy days: 43 days Average annual sunlight duration: 1140.5 hour Source: EIT.

3. Hydrological Condition

134. The proposed project location is in the area near Liangtan River, which is part of Jialing River watershed. Jialing River originates in Min Mountain and Qinlin Mountain area. It joins Yangtze River via Chaotianmen Port in downtown Chongqing. The total length of Jialing River within Chongqing area is 153.8 km and the area is 8,146 km2. According to the data collected at Beibei hydrological station, the maximum flow rate of Jialing River is 44,800 m3/s; the average flow rate is 2,120 m3/s; highest water level is 208.17 m; the lowest water level is 176.81 m and average water level is 179.64 m.

135. Liangtan River is one of the main tributaries of downstream of Jialing River. The total length of Liangtan River is 88 km of which 48.8 km within Shapingba District. The river originates in Yiliaojiagou Reservoir in Jiulongpo District, runs through 15 towns of Jiulongpo District, Shapingba District and Beibei District and joins Jialing River at Maopeituo, Beibei District. The highest flood level is 279.5-284.7 m.

4. Fauna and Flora

136. South of the Chongqing Transportation Logistics Park (Output 1) site is a planned cargo distribution center and a multimodal transport area which are under construction. On the north side, there is semi-natural and modified vegetation. There is a railway in the west and Liangshan Mountain is in its east.

137. Vegetation. Due to years of being overharvested, there is only a little forest remaining around the logistics park. The vegetation distribution from east to west is: warm coniferous forest mainly on Zhongliang mountain top level, evergreen broad-leaved forest mainly in the foothills, shrubs mainly at the edge of the valley, and grassland in the valley and inside the project area.

138. Baseline surveys of vegetation in the project area were conducted. Table 3.2 presents the list of plant species present in the project area of influence based on survey results supplemented with relevant data from literature review. There are 7 species of arbor species, 8 shrub species, 9 grass and vine species, and 15 species planted including food crops, vegetables and fruits. No species of international conservation value have been identified, and the only one species with national conservation value 11 , Camphor Tree (Cinnamomum camphora), is located mainly in Zhongliang Mountain area to the east of the projectsite.

11 National protected species are classified as Class I and Class II based on PRC’s List of Wild Flora under Nationally Emphasized Protection – First Batch and its revision.

Table 3.2: Plant Species Recorded in the Project Area of Chongqing Transportation Logistics Park

Vegetation Scientific Name Common Name Protection Status Type PRC IUCN

Pinus massoniana Masson’s Pine 马尾松青松 —— —— Arbor trees Eucalyptus robusta Smith Eucalyptus 桉树，尤加利树 —— —— Taxodiaceae taxodium family 杉科，杉树 —— ——

Quercus mongolia oak tree 栎树，橡树 —— —— Camphor Tree Camphor Tree 樟树(香樟) N(II) ——

Michelia alba DC Michelia champaca 黄桷兰，黄兰 —— ——

Ficus virens Ait. var. Ficus virens 黄葛树，黄桷树 —— —— sublanceolata (Miq.) Corner Coriaria nepalensis Masuri Berry 马桑，千年红 —— ——

Morus alba L mulberry 桑树 —— ——

Ligustrum quihoui Waxyleaf Privet 小叶女贞 —— —— Pittosporum pentandrum Taiwanese Cheesewood 七里香 —— ——

Shrubs 杜鹃，映山红 Rhododendron simsii Rhododendron —— —— Rosa spp. Rose 蔷薇花 —— —— Five-leaved Chaste 山牡荆，山浦 Vitex negundo —— —— 姜

Viburnum dilatatum Thunb Chinese Viburnum 荚rf，檕rf —— ——

Artemisia carvifolia Cut-leaved Wormwood 青� —— ——

楠竹，毛竹 Phyllostachys edulis Moso Bamboo —— —— Bambusa emeiensis Clumping Bamboo 慈竹，茨竹 —— —— Chrysanthemum indicum Wild Mums 野菊，油菊 —— —— Grasses/ Imperata cylindrica 白茅，茅草 Vines Cogon Grass —— —— Carex spp. Sedge 薹草 —— —— Oplismenus undulatifolius Basket Grass —— —— Setaria viridis Green Foxtail 狗尾草 —— —— Lemna minor Duckweed 浮萍，青萍 —— —— Amygdalus persica Peach 子 —— —— Prunus salicina Japanese Plum 李子 —— —— Malus pumila Paradise Apple 苹果 —— —— Vitis vinifera Wild Grape 葡萄 —— —— Cultivated citrus reticulata Tangor 广柑 —— —— /planted Luffa cylindrica Sponge Gourd 丝瓜 —— —— species Benincasa hispida Winter Melon 冬瓜，白皮瓜 —— —— Oryza sativa paddy, rice 水稻 —— —— Allium tuberosum Garlic Chives 韭菜 —— —— Asparagus plettuce Asparagus 莴笋 —— —— Zea mays Corn 玉米，苞谷 —— ——

Vegetation Scientific Name Common Name Protection Status Type

Ipomoea batatas Sweet Potato 红薯，红苕 —— —— Solanum tuberosum Patato 马铃薯，土li —— ——

Colocasia esculenta (L.) Taro 芋头 —— —— Schoot Vigna unguiculata string bean filli，姜li —— —— Source: Chongqing Transportation Holding Group Company and consultants.

139. Dominant Habitat Types. Due to its topographic conditions and subtropical monsoon climate, vegetation eco-types in the project area of the logistics base are mainly evergreen broad-leaved and warm coniferous forest, transitioning from arbor into shrubs and ground cover due to its location in a transition zone between a mountain and valley.

140. Dominant vegetation types were found to be shrubland and grassland, with planted (agriculture) vegetation including Citrus reticulata, Amygdalus persica, Oryza sativa, Solanum tuberosum, and Ipomoea batatas. Tall trees found in the project area are mainly planted species. The dominant species associated with these vegetation types are described in Tables 3.3, which also includes photos indicating the vegetation cover in the described area.

Table 3.3: Dominant Vegetation Species Near Chongqing Transportation Logistics Park Site (Output 1)

Species Type Description Photo 1) Mainly on the high level area of Zhongliang Mountain. 2) Pinus massoniana occupies Warm 80%. Coniferous Forest

1) Mainly in the foothills of Zhongliang Mountain. 2) Arbor tree species are mainly Ficus virens Ait. var. ,Quercus Evergreen Mongolia, Eucalyptus robusta Broad-leaved Smith and Camphor Tree. Forest 3) Shrub species are mainly

Coriaria nepalensis, Morus alba

L, Pittosporum pentandrum,

Rosa spp.,

1) Mainly are shrubs such as Shrubs /Grasses Phyllostachys edulis, Bambusa and Vines emeiensis, Morus alba L, Rhododendron simsii, and vines.

Species Type Description Photo

Source: EIT institute and IA.

141. Fauna. Land within the project area is mainly farmland with scattered residential buildings. A number of common species are associated with the project site. The ecological literature review shows that wild animals are only concentrated inside the Zhongliang Mountain area, and did not reveal the presence of any international and national conservation value within the project area of influence.

142. Fauna around the project area (Shapingba District) was investigated via literature review and is summarized in Table 3.4.

Table 3.4: Fauna Potentially within the Project Area of Influence Chongqing Transportation Logistics Park Site (Output 1) Fauna Scientific Name Common Name Protection Status Type PRC IUCN Mammals Phaiomys leucurus Blyth’s Vole 田鼠 —— —— Felinae Cat , 野 —— —— Mus musculus House Mouse 小家鼠,鼹鼠 —— —— Rattus norvegicus Brown Rat 褐家鼠,大家鼠 —— —— Canis lupus familiaris Dog 狗,土狗 —— —— Myospalax fontanieri Chinese Zokor 鼢鼠,山耗子 —— —— Capra aegagrus hircus Goat 山羊 —— —— Bird Streptopelia turtur Turtle Dove 斑ftf,鸪锥 —— —— Passer montanus Eurasian Tree Sparrow 麻雀,霍雀 —— —— Egretta garzetta Little Egret 小白鹭,白鹭鸶 —— —— Pica pica Magpie 喜鹊,长尾鹊 —— —— Falco Linnaeus Falco 隼,土鹘 —— —— Garrulax canorus Chinese Hwamei 画眉--% —— —— Acridotheres cristatellus Crested Myna 八哥,了哥 —— —— Hirundo rustica Barn Swallow 家燕,燕子 —— —— Fish Carassius auratus Crucian 鲫鱼,土鲫 —— —— Aristichthys nobilis Bighead carp 鳙鱼,花莲 —— —— Ctenopharyngodon idellus Grass Carp 草鱼,乌青 —— —— Cyprinus carpio Wild Common Carp 鲤鱼,鲤子 —— —— Hypophthalmichthys Silver Carp 鲢鱼,白鲢 —— —— molitrix Silurus asotus Amur Catfish 鲶鱼,胡子鲢 —— Commercial Gallus domestiaus Chicken l¥,家l¥ —— —— species Duck Duck 鸭,家鸭 —— —— (domestic animals) Anser cygnoides orientalis Swan goose 鹅,家鹅 —— —— Canis lupus familiaris Dog 狗,看家狗 —— —— Capra aegagrus hircus Goat 羊,山羊 —— —— Carassius auratus Crucian 鲫鱼,土鲫 —— —— Ctenopharyngodon idellus Grass Carp 草鱼,乌青 —— —— Hypophthalmichthys Silver Carp 鲢鱼,白鲢 —— —— molitrix Aristichthys nobilis Bighead carp 鳙鱼,花莲 —— —— Source: IA and TA consultants.

5. Socio-economic Conditions

143. Shapingba District covers an area of 396.2 km2 including 12 sub-districts and 11 townships. The total population of the district was 1.11 million including 798,000 permanent residents at the end of 2014 with a resident urbanization rate of 84.7%. The total gross domestic

product (GDP) of the district was CNY80.92 billion in 2014, an increase of 9.1% from previous year. The total industry output in 2014 was CNY41.68 billion, of which electronic industry output represents 75.8%. There are 184 enterprises that had import and export businesses with a total business volume of $29.57 billion, including $7.82 billion import and $21.75 billion export. 144. The registered unemployment rate in 2014 was 2.53% with a total of 8,274 registered unemployed people. The logistics base is located in Tuzhu Township, which has an area of 33.32 km2 and nine villages. The township has 7,438 households with a total population of 23,528.

6. Education and Culture

145. Shapingba is well known in Chongqing for its education resources with 19 universities. In 2014, there were 292 education-related institutes including 93 elementary and middle schools and 199 kindergartens in the district. The number of teachers and supporting staff was 12,404 including 8,400 in elementary and middle schools and 4,004 in kindergartens. There were 9,355 teachers including 7,346 elementary and middle school teachers and 2,009 kindergarten teachers. At the end of 2014, there were 347 medical facilities in the district with 6,640 hospital beds and 6,997 health professionals.

7. Ambient Air Quality

146. The baseline data of ambient air quality at the project location was monitored for seven consecutive days during 6-12 January 2014. Three common air pollutants, PM10, TSP and NO2, were measured. The monitoring results are shown in Table 3.5 and comparisons are made with the applicable standard of Class II of Ambient Air Quality Standard (GB 3095-1996). The location of ambient air monitoring station is approximately 0.8 km west of the project site as shown in Figure 3.3.

Table 3.5: Air Quality Monitoring Results – Shapingba (Output 1)

Daily Average Range Class II GB3095 Standard Date of Measurement Parameter (mg/m3) (mg/m3)

SO2 0.070~0.095 0.15 6-12 Jan 2014 0.044~0.062 0.08 NO2 TSP 0.143~0.364 0.3 Source: Tuanjiecun EIT (Output 1).

147. It can be observed from Table 3.8 that the monitoring data of SO2 and NO2 are in compliance with the Class II standard (GB3095). However, the maximum TSP concentration of 0.364 mg/m3 is over the standard of 0.3 mg/m3. This is believed to be caused by the heavy construction activities in the logistics base. The concentrations of SO2 are within the range of WHO/WB Group EHS Interim targets of 0.05-0.125 mg/m3 but higher than AQG of 0.02 mg/m3. WHO/WB Group EHS does not have 24-hour average standards for NO2 and TSP.

Surface Water Sample

Air Quality

Project Site Groundwater

#1 Noise #2 Noise

Figure 3.3: Baseline Data Measurement Locations Chongqing Transportation Logistics Park Site (Output 1)

8. Surface Water Quality

148. Since the logistics parks are not allowed to undertake any manufacturing processes, the wastewater generated will not be considered as industrial wastewater. Each of the logistics parks will have a septic tank system to treat the wastewater and then discharged to the municipal sewer system for treatment. The logistics base where Output 2 facility is located already has a wastewater treatment plant while a new municipal wastewater treatment facility will be built inside the logistics base where Output 1 is located. Part of the stormwater at the facility will be collected by two retention ponds at the site and the rest will go to the municipal sewer system which discharges eventually into Liangtan River. According to Chongqing Surface Water Environmental Functional Classification, Liangtan River was classified as Class V water quality. The wastewater of the proposed project will be discharged into the municipal water pipeline network after being treated and meeting Class III Standard of National Wastewater Discharge Standards (GB8978-1996) as well as Standard I-A of Municipal Wastewater Treatment Plant Discharge Standard (GB18918-2002). The Class V Standard of National Surface Water Quality Standards (GB3838-2002) will apply.

149. Surface water samples were taken from Liangtan River (see Figure 3.4), approximately 3 km northwest of the proposed Output 1 site. One sample was taken each day for three consecutive days from 7-9 January 2014. The results of laboratory analysis of these samples are shown in Table 3.6.

Liangtan River Liangtan River Figure 3.4: Surface water sampling location – Liangtan River

Table 3.6: Surface Water Quality Monitoring Results – Output 1

Parameter pH COD BOD5 NH3-N Oil TP Class V standard 6～9 �40 �10 �2.0 �1.0 �0.4 (GB3838)

Measured 29.2-31.4 9.0-9.7 10.2-10.9 0.04L 0.694-0.7 result 8.06-8.09 In compliance? Yes Yes Yes No Yes No Source: Tuanjiecun EIT (Output 1).

150. According to Table 3.9, the values of pH, COD, BOD5 and oil grease are in compliance with the Class V surface water quality standard while the value of NH3-N and TP exceeded the Class V standard. According to the EIT, the causes of the exceedance were due to area pollution sources and untreated sewage discharged to the Liangtan River. The district

63 government has taken actions to mitigate the water quality of the Liangtan River. The construction of the Tuzhu Wastewater Treatment Plant will improve water quality of Liangtan River over time, this plant is not associated with the project, it is part of a strategic plan to improve water quality.

9. Groundwater Quality

151. Groundwater samples were taken from a well near the proposed project site for Chongqing Transportation Logistics Park site as shown in Figure 3.12. The results of the groundwater water samples are shown in Table 3.7. It can be seen from the results that all measured parameters are in compliance with GB/T14848 Class III standards.

Table 3.7: Groundwater Quality Baseline Data for Output 1

Unit Monitoring Results Class III Parameter 3 June 2015 4 June 2015 5 June 2015 GB/T14848 Standard pH - 7.71 7.67 7.52 6.5 – 8.5 NH4 mg/L 0.05 〈0.02 0.08 �0.2 Volatile phenols mg/L 〈0.001 〈0.001 〈0.001 0.002 Permanganate mg/L 1.50 1.48 1.48 �3.0 Sulfate mg/L 89.7 88.6 92.5 �250 Chloride mg/L 53.2 52.1 54.7 �250 Nitrate Nitrogen mg/L 0.001 〈0.001 0.001 �0.02 Hardness(CaCO3) mg/L 391 389 446 �450 Coliform #/L 〈2 〈2 〈2 �3 Source: Pony Lab report (June 2015) provided by the IA.

10. Acoustic Environment

152. Noise monitoring within the project area was conducted during 21-22 May 2015. There are two monitoring points and the results are shown in Table 3.8.

Table 3.8: Noise Monitoring Results – Output 1 Results (Leq:dB(A)) Date Monitoring Point Day Night 21 May 2015 48.7 41.2 #1 22 May 2015 50.4 40.6 21 May 2015 44.2 39.6 #2 22 May 2015 44.8 38.3 Class II Standard 60 50 Source: Tuanjiecun EIT (Output 1).

153. The ambient noise levels at the proposed project site meet the Class II Environmental Quality Standard for Noise (GB3096-2008). All points of daytime monitoring complied with the WBG EHS Guideline value 70 dB (A) for daytime for logistics parks. The nighttime monitoring data of #2 location are just over the Class II standard of 50 dB(A) while WBG EHS standard is 70 dB (A).

C. Sensitive Receptors Near Chongqing Transportation Logistics Park Site (Output 1)

154. The project site is located in the Chongqing Railroad Logistic Base. The project property is surrounded by a railway track on the south side, a road on the west side and farmlands on the east and north sides. There is no nature protected area, culture relics, ecologically sensitive area, or drinking water source within the project area of influence. The potential environmental sensitive receptors near the project site are listed in Table 3.9.

Table 3.9: Environmental Sensitive Receptors – Chongqing Transportation Logistics Park Site (Output 1)

Distance from the Sensitive Receptor Direction Sensitive Factor Sensitive Period Site (m) Construction & Liangtan River NW 2,000 Surface Water Operation Construction & Baonong Elementary School NW 1,200 Ambient Air Operation Residents of Tianba Village Ambient Air and Construction & N 200 (plan to be relocated) Noise Operation Construction & Residents of Qingfen Village E 2,100 Ambient Air Operation Source: Tuanjiecun EIT (Output 1).

D. Environmental Baseline of Nanpeng Logistics Park Site (Output 2)

1. Topography and Geology:

155. Banan District is located in the south of downtown Chongqing and upstream area of Yangtze River with a longitude from 106°25’29”～106°59’58” E and a latitude from 29°07’45”～ 29°46’23”. The total area of the district is 1,825 km2. It is bordered by Pulin District and Nanchuan District of Chongqing in the east, Qijiang County and Jiangjin District in the south, Jiulongpo District and Dadukou District in the west. The Banan district government is located in Longzhouwan area, which is 8 km from downtown, 45 km from Chongqing Airport, 22 km from Chongqing Railway Station and 23 km from Chongqing Harbor. The proposed Nanpeng logistics park is located inside the Chongqing Roadway Logistics Base, which is in Banan District, 30 km away from downtown Chongqing. The base is connected to Yuxiang Highway in the east, Yuqian Highway in the west, inner-ring highway in the north and outer-ring highway in the south. The Nanpeng logistics park is located on Nanpeng Street within the base and it is 0.4 km to the nearest highway, which is ideal for a logistics facility.

156. Banan District is in a transition area between Chuandong Valley and Nanyuan Basin. The topography of the district is long and narrow in the east and flat in the south and north. The lowest elevation is 154 m above sea level (ASL) at the northern edge of the district while the highest elevation is the Fangdou Mountain at an altitude of 1,132.6 masl. The difference in elevation is 979 m. The terrain of the project site is high in the east and low in the west, high in the south and low in the north with distinct rise and fall and mixed hill and valley. The highest elevation at the project site is 427 m and the lowest elevation is 380 m, an elevation difference of 47m. Some of the site photos are shown below in Figure 3.3.

Nanpeng Project Site

Figure 3.5: Terrain Map of Nanpeng Site

Figure 3.6: Terrain Photo of Nanpeng Site

157. According to the [People’s Republic of] China Seismic Intensity Classification Map (1994 version), the seismic intensity of the site is Class 6, which is considered low for seismic hazard. The structures of the site shall be designed to comply with the requirements for Class 6 seismic intensity. The project site is in a low risk zone for geological hazards and no landslide, collapse, mud or rock slide, surface collapse have been recorded in the project area.12

2. Meteorology and Climate:

158. The Banan District has subtropical humid monsoon climate with characteristics of mild climate, four distinct seasons, abundant rainfall, a long frost-free season, low sunlight and frequent fogy days. Local metrological parameters are shown in Table 3.10.

Table 3.10: Local Meteorological Parameters in Banan District

Parameter Description Temperature Average: 18.4°C Highest temperature: 42.2°C Lowest temperature: -2.4°C Precipitation Average precipitation: 1,151.5 mm Maximum daily precipitation: 192.9 mm Maximum hourly precipitation: 65.2 mm Average Humidity 80.0% Average Pressure 98.39 kPa Wind direction and speed Annual predominant wind direction and frequency: N 13%

12 Nanpeng EIT (2015)

Summer predominant wind direction: NNW Annual average wind speed: 1.1 m/s Annual static wind frequency: 33% Special meteorology Average annual foggy days: 68.3 days Average annual sunlight duration: 1259.5 hour Average annual thunderstorm day: 28.3 days Source: Nanpeng EIT (Output 2).

3. Hydrological Condition:

159. There are 98 rivers and creeks in the Banan District which are tributaries of the Yangtze River. Yangtze River flows from west to east through the district. There are six Class I tributaries including Wubu River, Yuxi River, Yucang Creek, Huaxi River, Yipin River, and Shuang River. The total flow distance of these tributaries within the district is 204.9 km and the catchment area is 1,504.35 km2.

160. The water system in Banan District is Huaxi River water system. Huaxi River is one of the main tributaries and its catchment area is 268.46 km2 with an annual average flow rate of 4.25 m3/s. The total length of Huaxi River is 63.62 km and the total elevation difference is 561.23 m. The watershed shape is long and narrow and the river course twists and turns.

4. Flora.

161. Nanpeng District is in the subtropical evergreen broad-leaved forest region. The forest coverage of the district is 18.2%. A baseline survey of vegetation in the project area was conducted. Table 3.2 shows the list of plant species present in the project area of influence based on the survey results supplemented with relevant data from literature review. There are 4 arbor species, 7 shrub species, 7 grass and vine species, and 11 species planted including food crops, vegetables, and fruits. No floral species of international and national conservation value have been identified within the project area of influence.

Table 3.11: Flora Resources in the Project Influence Area of Output 2

Protection Status Vegetation Scientific Name Common Name Type PRC IUCN Pinus massoniana Masson’s Pine 马尾松青松 —— ——

Erythrina variegata Erythrina indica 山芙蓉 —— —— Arbor trees Salix matsudana willow 柳树 Ficus virens Ait. var. Ficus virens 黄葛树，黄桷树 —— —— sublanceolata

Morus alba mulberry 桑树 —— —— Osmanthus sp. Sweet Olive 岩ti —— —— Nerium indicum Nerium indicum 甲子 —— —— 七里香 Shrubs Pittosporum pentandrum Taiwanese Cheesewood —— —— Grewia biloba Bilobed Grewia s麻 —— —— Opuntia stricta (Haw.). var. cactus 仙人掌 —— —— dillenii ( Coriaria nepalensis Masuri Berry 马桑，千年红 —— —— Grasses/ Artemisia argyi Chinese mugwort 艾草 —— ——

Vegetation Protection Status Scientific Name Common Name Type PRC IUCN

Vines Xanthium sibiricum Siberia Cocklebur 卷耳 —— —— Phyllostachys edulis Moso Bamboo 楠竹，毛竹 —— —— Bambusa emeiensis Clumping Bamboo 慈竹，茨竹 —— —— Humulus scandens Humulus japonicus 黑草 —— —— Oplismentls undulatifolius folius 求米草 —— —— Setaria viridis Green Foxtail 狗尾草 —— —— Amygdalus persica Peach 子 —— —— Prunus salicina Japanese Plum 李子 —— —— Malus pumila Paradise Apple 苹果 —— —— Vitis vinifera Wild Grape 葡萄 —— —— Citrus reticulata Tangerine 广柑 —— —— Fragaria ananassa Strawberry 草莓 —— —— Luffa cylindrica Sponge Gourd 丝瓜 —— —— Benincasa hispida Winter Melon 冬瓜，白皮瓜 —— —— Cultivated Oryza sativa paddy, rice 水稻 —— —— /planted Allium tuberosum Garlic Chives 韭菜 —— —— species Allium fistulosum shallot， green onion 小葱 —— —— Brassica campestris bok choy 青菜 —— —— L.ssp.chinensis var.communis Asparagus plettuce Asparagus 莴笋 —— —— Zea mays Corn 玉米，苞谷 —— —— Ipomoea batatas Sweet Potato 红薯，红苕 —— —— Solanum tuberosum Patato 马铃薯，土li —— —— Colocasia esculenta Taro 芋头 —— —— Vigna unguiculata string bean filli，姜li —— ——

162. Dominant vegetation types include shrubs and grassland on the shallow hills and under the planted forests; the other one is agriculture planting areas between shallow hills. The dominant species associated with these vegetation types are described in Tables 3.12, which also shows the photographs of vegetation cover in the described area.

Table 3.12: Dominant Vegetation Species Near Output 2

Species Type Description Photo Mainly located on top and in the middle of the hills, 90% pine trees, Man-made Pinus massoniana, and some Forest shrubs, grass and vines in the lower layers

Agricultural Mainly planted economic products Planted Area such as vegetables, and fruits.

163. The vegetation in the project area is mostly shrubs, grass and veins including the planted agriculture products, including Citrus reticulata, Amygdalus persica, Prunus salicina, Oryza sativa, Ipomoea batatas, and Solanum tuberosum. Tall trees found in the project area are mainly planted species.

5. Fauna

164. Fauna within the project area was investigated based on literature review. The site is located in the transitional area of hilly farmland and forest farmland and due to heavy human activities in the area, fauna, is limited to common species such as small mammals associated with modified habitats. The fauna species documented in the project influence area are summarized in Table 3.13.

Table 3.13: Summary of Fauna Recorded Near Output 2 Site Protection Status Fauna Type Scientific Name Common Name PRC IUCN Mammals Leporidae Rabbit 兔子 —— —— Phaiomys leucurus Blyth’s Vole 田鼠 —— —— Felinae Cat , 野 —— —— Micromys minutus Pallas Harvest Mouse 圃鼠 —— —— Rattus tanezumi 黄鼠 —— —— Mus musculus House Mouse 小家鼠,鼹鼠 —— —— Rattus norvegicus Brown Rat 褐家鼠,大家鼠 —— —— Canis lupus familiaris Dog 狗,土狗 —— —— Myospalax fontanieri Chinese Zokor 鼢鼠,山耗子 —— —— Capra aegagrus hircus Goat 山羊 —— —— Bird Streptopelia turtur Turtle Dove 斑ftf,鸪锥 —— —— Cuculus canorus Linne Cuckoo 杜鹃 —— —— Eurasian Tree Sparrow 麻雀, Passer montanus 霍雀 —— —— Egretta garzetta Little Egret 小白鹭 , 白鹭鸶 —— —— Pica pica Magpie 喜鹊,长尾鹊 —— —— Falco Linnaeus Falco 隼,土鹘 —— —— Garrulax canorus Chinese Hwamei 画眉 --% —— ——

Protection Status Fauna Type Scientific Name Common Name PRC IUCN Acridotheres cristatellus Crested Myna 八哥,了哥 —— ——

Hirundo rustica Barn Swallow 家燕,燕子 —— —— Fish Carassius auratus Crucian 鲫鱼,土鲫 —— —— Aristichthys nobilis Bighead carp 鳙鱼,花莲 —— ——

Ctenopharyngodon idellus Grass Carp 草鱼,乌青 —— —— Cyprinus carpio Wild Common Carp 鲤鱼,鲤子 —— —— Hypophthalmichthys Silver Carp 鲢鱼,白鲢 molitrix —— —— Silurus asotus Amur Catfish 鲶鱼,胡子鲢 —— —— Domestic/Commercial Gallus domestiaus Chicken l¥,家l¥ —— —— Species Duck Duck 鸭,家鸭 —— ——

Anser cygnoides orientalis gaggle 鹅,家鹅 —— —— Sus scrofa Pig �

B.bubalus Asian buffalo 水牛 Felinae Cat , 家 —— —— Canis lupus familiaris Dog 狗,看家狗 —— ——

Capra aegagrus hircus Goat 羊,山羊 —— —— Carassius auratus Crucian 鲫鱼,土鲫 —— ——

Ctenopharyngodon idellus Grass Carp 草鱼,乌青 —— —— Hypophthalmichthys Silver Carp 鲢鱼,白鲢 molitrix —— —— Aristichthys nobilis Bighead carp 鳙鱼,花莲 —— ——

6. Soil

165. The soil types in project area are mainly paddy soil, purple soil and yellow soil as shown in the photos below.

Figure 3.7: Typical soil types found around Nanpeng Logistics Park site

7. Social and Economic Conditions

166. Banan District has an area of 1,825 km2 and population of 870,000. The GDP of the district in 2013 was CNY42 billion with an increase of 10.6% compared to previous years. The agricultural GDP and industry sector GDP are CNY3.79 billion and CNY21.47 billion, respectively. The main industrial sectors include electronics, manufacture, automotive, light industries, medicine and medical equipment, refined chemical, IT and other industries. The annual export and import goods are more than $1 billion from Banan District.

167. There are 271 elementary schools, 57 middle schools and 2 specialty schools in Banan District with a total student enrollment of 121,600. The school age children enrollment rates for elementary schools and middle schools are 100% and 98%. There are 40 medical facilities including 35 hospitals, a health supervision institute, a disease control center, a women’s health institute, a nursing school, and a medical management center.

168. Loss of Income as a result of Project. The income loss (for farm land) rate by village group ranges from 8.08% to 12.20%, which has limited impact on people’s income. Land acquisition compensation includes land compensation, resettlement subsidy and young crop compensation. There are five enterprises to be relocated with loss of jobs for temporary workers. However, most of the workers have already found jobs as there are many industries in the area. Others may gain employment through the project. Full details are included in the relevant Resettlement Plans.

#2 Surface Water

#2 Noise Point

Groundwater Point

Project Site #1 Noise Point

#1 Surface Water

2.2km

#3 Noise Point

#4 Noise Point

Air Monitoring Station Scale 1:40000

Figure 3.8: Baseline Data Measurement Locations for Nanpeng Logistics Park Site (Output 2)

8. Ambient Air Quality

169. The project site is located in the logistics base on Nanpeng Street, Banan District. Baseline study was conducted and the measurement locations of various parameters are shown in Figure 3.8.

170. The proposed project site is classified as Class II based on Classification Regulation of Chongqing Ambient Air Quality Functional Zone and the applicable standards is Class II Standard of National Environmental Air Quality Standards (GB3095-2012).

171. Pollutants monitored include SO2, NO2 and PM10. The monitoring period was from August 19 to 25, 2013 for seven days and the monitoring point is located in the south side of Guangda Dairy Project Site. The location of the air quality monitoring station is also shown in Figure 3.6. Monitoring results are shown in Table 3.14.

Table 3.14: Ambient Air Quality Monitoring Results (Output 2) 3 3 3 Item PM10 (mg/m ) SO2 (mg/m ) NO2 (mg/m )

Time Concentration Pi Concentration Pi Concentration Pi 19 Aug 2013 0.098 65% 0.015 10% 0.006L / 20 Aug 2013 0.101 67% 0.018 12% 0.006L / 21 Aug 2013 0.096 64% 0.016 11% 0.006L / 22 Aug 2013 0.098 65% 0.013 9% 0.006L / 23 Aug 2013 0.098 65% 0.014 9% 0.006L / 23 Aug 2013 0.097 65% 0.016 11% 0.006L / 25 Aug 2013 0.096 64% 0.014 9% 0.006L / Standard 0.15 0.15 0.08 Pi = the percentage of monitoring data compare to standard values; L = detection limit. Source: Nanpeng EIT (Output 2).

172. According to the data in Table 3.14, the monitoring data of SO2 and PM10 met the Class II standard and NO2 levels were below detection limit. The maximum PM10 is only 67% of the national standard. The concentrations of SO2 are lower than the WHO/WB Group EHS Interim 3 3 targets of 0.05-0.125 mg/m and AQG of 0.02 mg/m . The PM10 concentrations are within the WHO/WB Group EHS Interim Targets of 0.075-0.15 mg/m3 but higher the AQG of 0.05 mg/m3. WHO/WB Group EHS does not have 24-hour average standards for NO2.

9. Surface Water Quality

173. The surface wastewater (stormwater) will be collected by the on-site stormwater retention tanks and only excessive stormwater will be discharged to the municipal sewer system. The applicable surface water quality standard in the project area is Class V Standard of National Surface Water Quality Standards (GB3838-2002). The nearest water body is the Huaxi River. The surface water samples were collected from Huaxi River with two sample points as shown in Figure 3.9. The distance from the Huaxi River to the proposed project site is between 2-3 km. Figure 3.8 shows the two surface water locations. The laboratory analysis results of the surface water samples are shown in Table 3.15.

#1 sampling location #2 sampling location Figure 3.9: Surface water sampling locations - Huaxi River

Table 3.15: Surface Water Quality Monitoring Results – Nanpeng Logistics Park Site Monitoring TP COD BOD NH -N E.coli Location 5 3 Time mg/L mg/L mg/L mg/L number/L 2013.12.9 0.096 17.8 2.8 0.572 2.3*103 #1 2013.12.10 0.099 16.8 2.9 0.583 2.3*103 2013.12.11 0.102 16.4 2.8 0.566 2.3*103 2013.12.9 0.087 20.1 2.1 0.595 ?2.4*105 2# 2013.12.10 0.084 19.4 2.2 0.605 ?2.4*105 2013.12.11 0.091 19.3 2.2 0.589 ?2.4*105 Class V Standard 0.4 40 10 2.0 4x104 Source: Nanpeng EIT (Output 2).

174. Table 3.3 shows that monitored parameters of COD, BOD5, NH3-N and TP at the No. 1 monitoring point met Class V standards. However, the E.coli value at No. 2 monitoring point did not meet Class V Standard. According to the EIT, the main reason is some residents and restaurants along the river bank discharge untreated wastewater into Huaxi River directly. According to the municipal river mitigation plan, sewer lines will be built to connect these discharge point and the sewage will be sent to WWTP for treatment before discharging to Huaxi River.

10. Groundwater Quality

175. Groundwater samples were taken from a well within one kilometer of the proposed project site for Nanpeng Logistics Park (Output 2) as shown in Figure 3.8. The results of the groundwater water samples are shown in Table 3.16. It can be seen from the results that all measured parameters are in compliance with GB/T14848 Class III standards.

Table 3.16: Groundwater Quality Baseline Data for Output 2

Unit Monitoring Results Class III Parameter 27 May 2015 28 May 2015 29 May 2015 GB/T14848 Standard pH - 7.71 7.67 7.52 6.5 – 8.5 NH4 mg/L 〈0.02 0.07 〈0.02 �0.2 Volatile phenols mg/L 〈0.001 〈0.001 〈0.001 0.002 Permanganate mg/L 1.00 1.02 1.04 �3.0 Sulfate mg/L 39.0 39.2 39.2 �250 Chloride mg/L 1.84 1.96 1.84 �250 Nitrate Nitrogen mg/L 〈0.001 〈0.001 〈0.001 �0.02 Hardness(CaCO3) mg/L 142 142 142 �450 Coliform #/L 〈2 〈2 〈2 �3 Source: Pony Lab report (May 2015) provided by the IA.

11. Acoustic Environment

176. Noise monitoring within the project area was conducted during 3-4 April 2014 and 21-22 May 2015. There are four monitoring points as shown in Figure 3.8 and the results are shown in Table 3.17.

Table 3.17: Noise Monitoring Results – Nanpeng Logistics Park Site (Output 2) Results (Leq:dB(A))

Date Monitoring Points Day Night 3 April 2014 53.4 40.3 #1 4 April 2014 55.9 39.8 3 April 2014 54.6 40.1 #2 4 April 2014 54.2 40.4 21 May 2015 54.1 43.6 #3 22 May 2015 53.7 43.3 21 May 2015 47.7 41.2 #4 22 May 2015 47.2 40.4 Class II Standard 60 50 Source: Nanpeng EIT (Output 2).

177. The ambient noise levels at the proposed project site meet the Class II Environmental Quality Standard for Noise (GB3096-2008). All points complied with the WBG EHS Guideline value 70 dB (A) for daytime and night time for logistics parks.

E. Sensitive Receptors Near Nanpeng Logistics Park Site (Output 2)

178. The Nanpeng Logistics Park is located inside Chongqing Roadway Logistics Base, parts of which have already been developed. Only a small area of land on the east side of the Nanpeng Logistics Park site is agricultural land. The logistics base administrative office is located 700 m north of the project site. There is one residential household located about 100 m northeast of the project site. There are no hospitals and schools within 500 m of the project site.

There are no key cultural heritage sites or protected areas, critical or valuable natural habitats or species or drinking water sources recorded within 1,000 m the project site. No other environmental sensitive receptors are within the project area of influence. The environmentally sensitive receptors are summarized in Table 3.18.

Table 3.18: Main Environmentally Sensitive Receptors (Output 2) Distance from the Sensitive Receptor Direction Sensitive factor Affected Period project site (m) Roadway logistic base Construction NW 700 Ambient air administrative office Operation Ambient air and Residence NE 300 Construction noise Operation

Source: Nanpeng EIT (Output 2).

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

179. Potential project impacts, both positive and negative were assessed through site visits, technical analysis, consultations with government agencies and local communities, and dialogues among the executing agency, implementing agency, DIs, EIA institutes and PPTA consultants. Potential impacts and environmental issues during construction include noise, air quality, and water pollution, fugitive dust, soil erosion, construction waste disposal, interference with traffic, land acquisition and resettlement, and occupational and community health and safety. Issues during operation include air quality, noise, wastewater treatment, and solid waste. This IEE covers direct impacts, indirect and induced impacts, and cumulative impacts.

A. Positive Impacts and Environmental Benefits

180. The project will support modal shift of heavy freight traffic from road to inland waterway and rail which will result in a net reduction in pollutant and greenhouse gas emissions. The new logistic parks will reduce inner city freight traffic trips contributing to reduced traffic congestion and improved road condition and safety in the urban area. Once fully operational, the Ro-Ro output of the project is expected to reduce CO2 emissions by 3,180 tons per annum from highway haul trucks.

181. Social Benefits: This project will directly benefit 2.92 million people currently living in the three project districts and indirectly benefit 7.22 million urban residents in the inner city of Chongqing, 8,412 companies undertaking logistics business and 386,800 employees working in the urban districts of Chongqing. The main social impacts include the following:

i) provide direct employment opportunities during project construction and operation. ii) reduce cost of freight and consumer goods. iii) Assure supply of commodity goods. iv) Improve transport conditions (safety and congestion) in urban areas v) It will reduce traffic congestion in the inner city of Chongqing, costs of freight transportation and prices of consumer goods, air pollution, energy consumption and emission, and disparity between urban and rural areas.

B. Energy Conservation of Inland Waterway Transport

182. Fifty haul truck heads and 150 trailers will be procured under Output 3 of the project. All new Ro-Ro trucks will use liquefied natural gas (LNG) as the fuel instead of the traditional fuel of diesel. LNG is a much cleaner fuel comparing to diesel and it also costs about 15-20% less than diesel fuel.

183. Transporting goods via Yangtze River from Chongqing to downstream of the river from Chongqing is much more fuel efficient than conventional land transportation. Fuel savings are calculated in the FSR using the following assumptions:

i) 29,000 truck trailers per year will be shipped via the Yangtze River under Output 3; ii) Traditional highway shipping distance: from Chengdu to Wuhan: 1137 km; from Chongqing to Wuhan: 880 km; iii) Inland waterway shipping option: Highway distance from Chengdu to Wuhan is 703 km, including 349km from Chengdu to Chongqing and 354 km from Zigui to Wuhan. Highway distance from Chongqing to Wuhan: 404 km, including 354 km from Zigui to Wuhan and 50 km to Guojiatuo Port in Chongqing.

Waterway distance from Chongqing to Yichang: 642 km iv) Diesel fuel is assumed for all highway transport

Table 4.1: Fuel Consumption Difference between Inland waterway Transport and Traditional Highway Transport

Ro-Ro truck fuel Number of Average fuel Distance From and To consumption vehicles per consumption (km) Option 1: (Liter/km) day (Liter/day)

Traditional Chengdu to Wuhan 0.45 2,274 28 28,652

Highway Chongqing to Wuhan 0.45 1,760 12 9,504

Total 38,156 Chengdu to Wuhan highway transport 0.45 1,406 28 17,716 section Option 2: Chongqing to Wuhan Inland highway transport 0.45 808 12 4,363 Waterway section Drop-and- Haul Guojiatuo to Yichang Waterway transport Fuel consumption 10.5 ton. 1 ton=1190 liters 12,495 section

Total 34,574 Daily average fuel savings between the two options 3,583

Source: Drop-and-Haul FSR.

C. GHG Emission Reduction

184. The total carbon emissions from the operation of the project are approximately 34,000 tons per annum when the project are fully operational. Economic analysis demonstrates that the project will result in an approximate net reduction of 18,000 tons carbon emissions per annum, as a result of improved efficiencies and modal shift from road to inland waterway, although these savings may be off-set by induced freight traffic and embodied carbon during construction. The assumptions and calculations are described below. The conversion from fuel to CO2

80 emission follows IPCC 2006 conversion factor with minor adjustment to reflect the heat value of the fuels in the PRC.

185. For the two logistics parks (Output 1 and Output 2), the CO2 emission reductions accrue through the elimination of journeys that large freight trucks make into the city, less the additional journeys that smaller trucks make into the inner city for distribution of certain percentage of cargos (to reach final customers in Chongqing). It is assumed that all large trucks use diesel and 50% of the smaller distribution trucks use gasoline and the remaining use LNG. In the without project scenario, cargos will continue to use these existing inner city logistics parks. The estimated annual CO2 savings for Output 1 (Chongqing Transportation Logistics Park ) and Output 2 (Nanpeng logistics park) are 7,382 tons and 3,929 tons, respectively.

186. For the inland waterway Ro-Ro transport (Output 3), the CO2 emission reduction is the difference of fuel consumptions by traditional road transport (without project scenario) and the Ro-Ro (with project), converted to CO2 emissions. The annual CO2 emission reduction is 3,570 tons.

187. For the logistics information system (Output 4), the CO2 emission reduction is 4,271 tons per annum assuming the average journey length is 1,000 km and 50% of the trucks will use the system where 10% of the users will avoid.

D. Environmental Compliance Audit

1. Nanpeng Logistics Park (Output 2)

188. Nanpeng Logistics Park (Output 2). Site preparation for part of the land (sections A and B) within the proposed facility was completed in 2011 and 2012. Photographs of these areas are presented in Figure 4.1. The logistics facilities in sections A and B will not be financed by ADB. An environmental compliance audit of these two sections was conducted to assess past and present concerns related to impacts on the environment at the site. The objective of the compliance audit was to determine whether actions were in accordance with ADB’s safeguard principles and requirements and to identify and plan appropriate measures to address outstanding compliance issues. An EIR for the logistics base within which Nanpeng logistic park is located was completed in December 2010. Chongqing EPB organized an expert group and evaluated the EIR and the approval was issued on 21 February 2011. The Soil and Water Conservation Report for the logistic base was also approved by the Chongqing EPB on 13 December 2010. The PPTA consultants visited the site and performed a compliance audit. It was observed that the site preparation of sections A and B has been completed and it has already been surfaced (see Figure 2.7). It was found that there are some construction machineries at the site but there is no construction or operation activity at the site. Temporary resting quarters for drivers have been built for occasional use by drivers.

189. The implementing agency confirmed that the contractor had taken environmental protection precautions and mitigation measures during the construction of the sections A and B in line with the approved EIR, as follows:

190. Fugitive dust mitigation measures: Assigned one designated staff to implement and monitor dust mitigation measures during construction in accordance with Chongqing Urban Dust Pollution Prevention Guidelines; sprayed water on construction sites and earth/material haul roads where fugitive dust is generated; washed vehicles at the exit of the works site to prevent trucks from carrying muddy or dusty substance onto public roads; checked to make sure

81 vehicles transporting construction materials are covered; assigned designated personnel to be responsible for the daily maintenance of fuel equipment and to monitor appropriate fuel is used; monitored onsite material transfer and storage areas; and checked to make sure if material piles were covered.

191. Wastewater mitigation measures: Assigned a designated staff to (i) manage domestic wastewater from construction workers and ensure no wastewater is discharged to environment; (ii) ensure wastewater is discharged into the septic tank and the septic tank operates properly; (iii) ensure the stormwater at the construction site is discharged into the sedimentation tank for treatment before being discharged into municipal sewer; and (iv) implement wastewater mitigation measures during construction.

192. Noise mitigation measures: (i) monitor noise at construction sites; (ii) do not carry out night construction activities; (iii) implement vibration and noise reduction program; (iv) monitor boundary noise and take action when the noise level exceeds allowable value; (v) monitor and manage construction noise and prepare mitigation plans.

193. Soil erosion mitigation measures. The contractors practiced soil and water conservation for the construction site; constructed and maintained temporary ditches on site to minimize erosion; cover top soil; and manage overall soil and water conservation program.

194. Solid waste management. The contractors assigned designated personnel to manage domestic solid waste generated from construction workers and it was disposed at approved facilities; and to supervise spoil and solid waste management.

195. Based on the review of available information and site visits, no non-compliance issues were identified.

Developed site with fence around it Undeveloped site with a worker’s camp

Developed site with temporary parking Temporary resting quarters for drivers Figure 4.1: Photos of Nanpeng Logistics Park Developed Site

2. Output 3: Inland Waterway Transport at Guojiatuo port facility.

196. A compliance audit of the Inland Waterway Transport output also been performed. Figure 4.10 shows the facility site and loading and unloading operation. The port has been in operation for many years by the Chongqing Ship Company (PIU3 of the project) and the operator has a well-established system to manage environmental and safety related issues. The nearest resident is over 500 m away from the port while the nearest school is over 700 m away. The TA consultants interviewed the staff working at the port, observed them performing their jobs and reviewed the company’s policies and procedures. There are some concerns about safety since the road entering the port facility is narrow and the trailers are relative long, during periods of loading and unloading there can be congestion.

197. The PIU3 has established a systematic safety management system, including hazard identification and risk assessment, safety training procedures, equipment and facility safety management procedures, safety inspection procedures, emergency response procedures, safety incident investigation and mitigation procedure, and fire safety management procedures.

198. The PIU3 has also implemented traffic management to ensure road safety entering the port facility. Specific mitigation measures include (i) established traffic patrol unit to assist the traffic police to monitor and direct traffic in and out of the facility; (ii) installed reflection mirrors and safety signs at bends or turns; (iii) inspecting trucks and trailers for safety hazards and ensuring repairs are done before entry to the port; (iv) the dispatch center monitors the traffic and weather conditions closely and will make adjustments when necessary; (v) properly maintain and repair the road to the port to ensure good road conditions. The workers interviewed appear to be well trained. No non-compliance issues were identified during the site inspection.

Loaded truck waiting to be loaded Loading the ship

A fully loaded ship ready for unloading Unloading – truck drives off the ship Figure 4.2: Loading and unloading at Guojiatuo Inland Waterway Port

E. Impacts Related to Project Location, Planning, Design

199. The proposed project will involve permanent land take only. Land will be taken up permanently for the two logistics parks. The Chongqing Transportation Logistics Park will take 45.0 ha (675.13 mu) of permanent land while the Nanpeng Logistics Park will take 53.4 ha (800 mu) of permanent land. All staging construction activities such as construction camps, borrow areas, and spoil disposal sites will be on the permanent land take areas..

F. Measures during Detailed Design and Pre-construction

200. Measures during Detailed Design. One important aspect during the detailed design stage is the need to consider climate change adaptation measures in logistics facility design, in particular, pavement and drainage systems that could withstand higher frequencies and intensities of extreme weather events. According to the climate change impact assessment for the project (see Appendix II). Extreme temperature increases due to climate change were found to have minimal effects on the project. Extreme rainfall due to climate change was found to affect Shapingba and Banan districts where the two logistics parks are located.

201. The following environmental measures will permanently become part of the logistics facilities and will be included in the detailed design of the proposed logistics parks by the design institutes.

i) Minimize loss of land and top soil, and risks of soil erosion: ➢ Incorporate landscape features in design; ➢ Optimize balance between cut and fill and avoid deep cuts and high embankments to minimize earthworks; ➢ Maximize reuse of spoil and minimize spoil disposal; ➢ Specify vegetation that serves specific bioengineering functions and is of local provenance; and ➢ Design appropriate drainage systems for slopes to reduce soil erosion.

ii) Adopt efficient use of materials and resources: ➢ Specify energy efficient lighting systems; ➢ Specify materials that are recycled, have recycled content or are from sustainable sources, particularly for fixtures/fittings inside the warehouse;

iii) Consider adaptation to extreme weather events due to climate change: ➢ Consider potential impacts from extreme weather events due to climate change in designing buildings and infrastructure; and ➢ Adopt appropriate protective measures such as vegetation cover, permeable paving, stormwater retention ponds.

iv) Ensure public health and safety during the construction and operation of the facilities, especially for the Ro-Ro of the project in which the volume of traffic to the pier for loading and unloading will be significantly increased.

v) Minimize air emissions: ➢ Specify local materials from licensed providers that minimize transport distance; and ➢ Locations for borrow areas and concrete batching stations must be at least 300 m downwind of the nearest household.

vi) Minimize risk of polluted run-off into water bodies: ➢ Technical design must ensure that drainage design and discharge locations minimize risk of polluting nearby water bodies; ➢ Design the on-site septic tank wastewater treatment system at two logistics parks with adequate capacities; and ➢ Ensure pre-treated water is discharged to the municipal sewer system.

202. Measures during Pre-construction. A number of environmental management measures will be implemented in the pre-construction phase to ensure project’s environment management readiness. These include:

i) Institutional strengthening: including (a) appointment of one qualified environment specialist within the CPMO; (b) hiring of loan implementation environmental consultant (LIEC) as an external monitor within loan implementation consultant (LIC) services by the CPMO to monitor and verify the implementation of the EMP. ii) Environmental monitoring. The implementing agency will contract local

environment monitoring stations (EMS) or an environmental monitoring organization with appropriate certifications by the government authorities to conduct environment quality monitoring for the two logistics parks. iii) Updating the EMP. Mitigation measures defined in the EMP will be updated based on final technical design. This will be the responsibility of the CPMO, with support from the LIEC. iv) Land-take confirmation. The Resettlement Plan will be updated with final inventory. This will be the responsibility of CPMO, using the local design institute. v) Contract documents. Environmental issues can potentially arise if the bidding documents are prepared without access to or use of the project EITs and IEE particularly the EMPs. Appropriate provisions of the EMPs shall be included in the safeguard clauses of the Technical Specifications in the contracts. This will be the responsibility of the CPMO with the support of the tender agent. vi) Contractors’ site-specific EMPs and method statements. Contractors shall prepare site-specific EMPs which will include method statements for each key construction activity and associated mitigation measures. These site-specific EMPs shall be submitted to the CPMO and the LIEC for review and approval. All contractors and subcontractors shall comply with approved EMPs. vii) Environmental protection training. The loan implementation consultant services (mainly but not exclusively through the LIEC) will provide training on preparation of site-specific EMPs, implementation and supervision of environmental mitigation and monitoring measures to relevant staff of contractors, construction supervision companies, CPMO, the implementing agency and PIUs. viii) Project level GRM. Review and update the project level grievance redress mechanisms (GRM) for the two logistics parks and make sure it will be operational prior to construction. Detailed description of the GRM is presented in Section VII of this IEE.

G. Impacts and Mitigation Measures during Construction

203. The environmental impacts during the construction stage of the two proposed logistics parks have been identified and corresponding mitigation measures have been developed as well. Since the Ro-Ro inland waterway transport will only involve procurement of equipment and no civil works will be required, there is no environmental impact during the construction phase of the project implementation. Both logistics parks are located in logistic bases. The environmental impacts and mitigation measures of those two outputs are comparable.

204. Impact Screening. Potential environmental impacts during the construction of the logistics facilities will include air quality, noise, water quality, ecology, solid waste, soil erosion and occupational health and safety. Potential air quality impacts could occur due to fugitive dust generated from the construction sites from stockpiles of uncovered earth materials and vehicles travelling on unpaved haul roads; as well as emissions from vehicles. The use of powered mechanical equipment (PME) during construction activities will generate noise. Construction activities will generate process wastewater and construction workers will produce wastewater. Permanent land take will result in loss of vegetation and increase the potential for soil erosion. Construction works will produce construction and demolition (C&D) wastes including excavated earth materials. Workers will face occupational health and safety issues working on construction sites. These potential impacts are assessed and addressed below.

Impacts and Mitigation Measures on Physical Resources

205. Air Quality. Main air pollutants during the construction stage in this project include (i) fugitive emissions of dust during earth works and (ii) exhaust emissions from movements of construction vehicles and machinery. According to the EITs, fugitive dust impact from the construction activities would be confined to within 100 m of the construction sites, and ambient air quality Class II standard would be achieved beyond 100m - 300 m depending on wind conditions. Fugitive dust during earth works, on haul roads and from uncovered stockpiles was estimated to affect a downwind distance of up to 100 m. All air quality sensitive receptors for the two logistics parks are located beyond 300 m of the sites of the logistics parks. Mitigation measures will be needed to suppress fugitive dust emissions.

206. The contractors shall include all necessary mitigation measures to reduce air pollution and dust emissions that would impact public health by implementing the following air quality control measures. Some of these measures are generic measures that are applicable to all construction sites and construction activities. Yet these are effective measures and are also described in WBG’s EHS guidelines. These measures are included in the EMP:

i) Provide dust masks to all personnel involved in the construction activities. ii) Spray water regularly on hauling and access roads (at least once a day but frequency to be responsive to season and local conditions) to suppress dust; and erect hoarding with a minimum height of 1.8 m around dusty activities. iii) Minimize the storage time of construction and demolition wastes on site by regularly removing them off site. iv) Cover the material for trucks which transport material that could generate dust. v) Assign haulage routes and schedules to avoid transport occurring in the central areas, traffic intensive areas, residential areas, local schools or hospitals. Vehicle speed on unpaved haul roads will be restricted to 10 km/hr. or less. vi) Keep construction vehicles and machinery in good working order, regularly service and turn off engines when not in use. vii) Vehicles with an open load-carrying case, which transport potentially dust producing materials, shall have proper fitting sides and tail boards. Dust-prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with a strong tarpaulin. viii) Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads. ix) In periods of high wind, dust-generating operations shall not be permitted within 200 m of residential areas. Special precautions need to be applied in the vicinity of sensitive areas such as schools, kindergartens and hospitals. x) Equip material stockpiles and concrete mixing equipment with dust shrouds. For the earthwork management for backfill, measures will include surface press and periodical spraying and covering. The spoil should be cleared from the project site and long term stockpiling should be avoided, where possible. xi) Unauthorized burning of construction and demolition waste material and refuse shall be prohibited and will subject to fines and penalties to the contractor, or withholding of payment. xii) Keep the public informed of construction schedules, dusty and noisy activities, and provide multiple entry points and well publicized access to the grievance redress mechanism. Post the complaint hotline number at all work site and construction camp entrances. 207. Contractors will be required to ensure compliance with relevant PRC emission standards.

Air quality monitoring will be carried out by contractors (internal) and a licensed environmental monitoring entity (external) during the construction period. With the above mitigation measures in place, potential air quality impacts during the construction stage would be reduced to acceptable levels.

208. Since site specific ambient air quality baseline data were not collected for Nanpeng Logistics Park (Output 2) site, the PIU for this output (PIU2) will be required to do baseline air quality measurement for SO2, NO2, TSP and PM10 before construction at the project site.

209. Noise. A significant increase of noise is expected during construction due to various construction and transport activities. Construction activities will involve PMEs such as excavators, bulldozers, stabilizers, concrete-mixer, drills, cranes and heavy duty trucks. The major construction machinery noise testing values that are used for highway construction are shown in Table 4.2.

Table 4.2: Maximum Noise Levels of Construction Machinery Maximum Noise Level Distance from No. Machinery Type (dB (A)) Source (m) 1 Excavator 84 5 2 Bulldozer 86 5 3 Concrete mixer 87 5 4 Loader 90 5 5 Road roller 86 5 6 Land scraper 90 5 Source: Specifications for EIA of Highway (JTJ005-96).

210. Based on the monitoring data collected from past construction projects, the noise peak of construction sites is around 90 dB and the average noise level is around 81 dB, which are consistent with the values in above table. Table 4.3 shows estimated noise levels at different distances calculated based on the sound power levels of equipment, noise attenuation according to acoustic principles and noise shielding effects of building walls and structures.

Table 4.3: Estimated Construction Noise at Different Distances (Unit:dB(A)) Distance (m) 0 5 10 20 40 60 80 100 Peak (dB) 90 76 70 64 58 54 52 50 Normal (dB) 81 67 61 55 49 45 / / Source: Nanpeng (Output 2) and Tuanjiecun (Output 1) EITs.

211. Though noise levels from equipment may be severe, the noise will be temporary and localized. Above table shows that the distances to meet the daytime standard of 70 dB(A) and night time standard of 55 dB(A) as specified in the Noise Standards for Construction Sites (GB12523-2011) would be 10 m and 60 m from the equipment, respectively. The negative noise impact is more severe at night. However, the noise impacts at the property boundaries of the two logistics parks will be limited as the sites are large. There are no schools, hospitals or other sensitive receptors located within 100 m of the construction sites. 212. Contractors shall comply with all the construction site management requirements and

88 implement environmental mitigation measures; install fences and mesh covers; prohibit operation of high noise equipment at nighttime; and conduct public consultation when continuous construction is needed.

213. Although the noise impacts will be transient and temporary, the following mitigation measures are essential for construction activities to meet PRC construction site noise limits and to protect sensitive receptors. Construction at night shall be strictly prohibited. During daytime construction, the contractor will ensure that: (i) noise levels from equipment and machinery conform to the PRC standard of GB 12523-90, and properly maintain machinery to minimize noise; (ii) equipment with high noise and high vibration are not used in urban areas and only low noise machinery or the equipment with sound insulation is employed; (iii) sites for concrete- mixing plants and similar activities will be located at least 1 km away from sensitive areas such as residences, schools, and medical centers; and (iii) temporary noise barriers will be installed to shield noise from residential areas.

214. Contractors will be required to implement the following mitigation measures to meet PRC noise standards for construction sites and WBG recommended noise limits. Some measures are generic and are applicable to all construction sites and activities:

i) During daytime construction, the contractor will ensure that: (a) noise levels from equipment and machinery conform to the PRC standard for Noise Standards for Construction Sites (GB12523-2011) and the WBG EHS Standards; (b) only low noise machinery or the equipment with sound insulation is employed; and (c) concrete mixers and similar activities will be located at least 300 m away from the nearest sensitive receptor. ii) Night time (between 22:00 and 06:00 hours) construction shall be avoided as much as possible, especially for Chongqing Transportation Logistics Park site if resettlement of some residents has not been completed. If night time construction work is needed, the contractors should prevent using high sound power level equipment and inform nearby residents of such night time activities well beforehand. iii) Regularly monitor noise at sensitive areas (refer to the monitoring plan). If noise standards are exceeded by more than 3 dB, equipment and construction conditions shall be checked, and additional mitigation measures shall be implemented to rectify the situation. iv) Provide the construction workers with suitable hearing protection (ear muffs) according to the worker health protection law of the PRC. v) Control the speed (less than 10 km/h) of bulldozer, excavator and other transport vehicles travelling on site; adopt noise reduction measures on equipment; ensure regular equipment repair and maintenance to keep them in good working condition. vi) Forbid the use of horns unless absolutely necessary, minimize the use of whistles. vii) Maintain continual communication with the villages and communities around the construction sites, particularly in respect of construction activities that may result in disturbance or inconvenience and ensure GRM is accessible and effective.

215. The WBG’s EHS guideline also provides the following guidance to mitigate noise and vibration impacts caused by the operation of pile drivers, earth moving and excavation equipment, concrete mixers, cranes and the transportation of equipment, materials and people during construction and decommissioning activities:

i) Plan activities in consultation with local communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in least disturbance. ii) Use noise control devices, such as temporary noise barriers and deflectors for impact activities, and exhaust muffling devices for combustion engines. iii) Avoid or minimize project transport through community areas, provide prior warning if there will be high volume of transport with potential noise disturbance impacts. 216. Noise and vibration impacts during the construction stage would be of short duration. Potential sensitive receptors will be exposed to short term and localized impacts. With the above mitigation measures in place, potential noise and vibration impacts during the construction stage would be reduced to acceptable levels.

217. Water quality. Uncontrolled wastewater and muddy runoff from construction sites and work camps could potentially pollute nearby water bodies and block drains. Wastewater produced during construction will be eventually discharged into Huaxi River after being treated to Class III standard for Pollutant Discharges of Municipal Wastewater Treatment Plants (GB 18918-2002) for Output 2. Similarly, wastewater from Output 1 will be discharged into Liangtan River after being treated at Tuzhu Township WWTP and meeting the Class III discharge standards. Wastewater produced during construction will come from washing aggregates, pouring and curing concrete, wastewater from maintenance and cleaning of mechanical equipment and vehicles. The domestic EITs estimated that the construction sites will generate 36 m3/d for each project site (Outputs 1 and 2). The construction and domestic wastewater generated during construction are summarized in Table 4.4.

Table 4.4: Summary of Wastewater Generated during Construction (m3/d) Item Output 2 Output 1 Total Construction water 16 16 32 Washing water 4 4 8 Domestic wastewater 16 16 32 Total 36 36 72 Source: EITs for Nanpeng (Output 2) and Tuanjiecun (Output 1).

218. The contractors will implement the following mitigation measures to prevent water pollution:

i) Wastewater from construction activities will be collected in sedimentation tanks and ponds to treat process water and muddy run-off with high concentrations of suspended solids to remove silts and oil.. ii) All areas where construction equipment is being washed will be equipped with water collection basins and sediment traps. iii) Portable toilets and septic tanks will be provided on construction sites and construction camps for the workers. When public sewers are completed in the logistics bases, pipelines will be installed to convey wastewater to public sewers. Construction sites and camps shall also have drainage provisions to collect and treat site runoff. iv) Construction machinery will be repaired and washed at designated locations. v) Storage and refueling facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces, and provided with bunds and cleanup kits.

vi) Material stockpiles will be protected against wind and runoff waters which might transport them to surface waters. vii) Any spills are to be cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated according to PRC and Chongqing requirements. Records must be handed over without delay to the CPMO and local EPB. An emergency spill contingency plan shall be prepared by the contractors as part of the SEMP and personnel will be trained in its use.

219. Solid Waste and Earth Works. Solid waste generated during construction will include refuse generated by construction workers on construction sites, refuse generated by construction workers on construction sites, and C&D waste dominated by excavated spoil during earth works for the project sites. If not properly disposed, such wastes will create community health and sanitation problems. The EITs estimated that approximately 1 kg/day of refuse would be generated on each construction site by the construction workers.

220. According to the EITs, Nanpeng Logistics Park (Output 2) will require excavation of approximately 15,000 m3 of soil while Chongqing Transportation Logistics Park (Output 1) will require excavation of approximately 25,000 m3 of soil. It is currently proposed that all excavated soil can be used in filling activities so there will be no spoil. Construction waste includes sand, rocks, cement, shredded wood, rebar and iron wires. In addition, it is estimated that 100 kg/day of domestic solid waste will be generated for each of the two outputs.

221. There will also be construction and demolition (C&D) wastes including materials from demolition of buildings. The C&D waste is common solid waste without toxic or harmful content. Thus, C&D waste and disposal are not anticipated to have adverse environmental impacts providing they are managed effectively.

222. The following mitigation measures will be implemented to manage spoil disposal and borrow areas:

➢ Manage materials on site effectively through good house-keeping and work planning to minimize waste generation. ➢ Strip and store topsoil in a stockpile for reuse in restoration. ➢ Use spoil disposal sites and borrow areas approved sites and contractors will only use material from borrow pits that have been approved. ➢ Spoil disposal sites and borrow areas shall be within the property boundaries of the logistics parks and away from any water body residential areas so as to reduce dust and noise from these areas. ➢ The contractors should plan their work in borrow areas and spoil disposal sites so that the open area is minimized and rehabilitation can be completed progressively. ➢ Restoration of spoil disposal sites and borrow areas will follow the completion of works in full compliance with all applicable standards and specifications, and will be required before final acceptance and payment under the terms of contracts. ➢ Conduct project completion audit to confirm that spoil disposal site and borrow area rehabilitation meets required standard, contractor liable in case of noncompliance.

223. The following mitigation measures will be implemented to manage construction site refuse and C&D wastes:

➢ Temporary storage and permanent disposal of C&D wastes at designated sites only. These sites shall be at least 300 m from any water body. ➢ Attempts shall be made to maximize the re-use of earth cut materials and C&D wastes on the project. ➢ Ensure C&D waste is enclosed during transport. ➢ Establish enclosed waste collection points on site, with separation of domestic, construction and recyclable waste streams. ➢ Set up centralized domestic waste collection point and transport offsite for disposal and or recycling at a registered waste handling facility.

224. To prevent soil contamination on construction sites, the following mitigation measures shall be implemented:

➢ Develop spill response plan. Keep a stock of absorbent materials (e.g. sand, earth or commercial products) on site to deal with spillages and train staff in their use. ➢ If there is a spill take immediate action to prevent entering drains, watercourses, unmade ground or porous surfaces. Do not hose the spillage down or use any detergents. Use oil absorbents and dispose of used absorbents at an appropriate waste management facility. ➢ Record any spill events and actions taken in environmental monitoring logs and report to the CPMO and LIEC; report to local EPBs for any significant spill incidents according to local regulations. ➢ Properly store petroleum products, hazardous materials and waste in clearly labeled containers on an impermeable surface in secure and covered areas, preferably with a containment tray for any leaks.

225. Soil erosion. Construction activities could affect soil in the project areas through erosion, contamination and differential compaction. Runoff from construction sites is one of the largest sources of sediment in urban areas under development. If uncontrolled, eroded sediment from construction sites creates adverse impacts on water quality, drainage and recreational activities. Increased soil erosion may also occur after completion of construction if site restoration and re- vegetation is inadequate. No information on estimated amount of soil erosion for the logistics parks was provided in the EITs as it is not required by the EPB for projects of this nature.

226. Soil erosion protection measures include engineering, planting and temporary measures. The most effective erosion control will be interception drainage to protect disturbed surfaces from surface flows, and sedimentation ponds to remove silt and sand from construction site runoff.

227. The contractors shall adopt the following mitigation measures to minimize soil erosion:

i) Fully understand all soil erosion requirements and have developed appropriate method statements and management proposals. ii) Construct intercepting ditches and berms to direct rainwater runoff away from exposed surfaces, where necessary. iii) Install drainage ditches and sedimentation tanks in temporary construction areas to prevent soil erosion and to manage run-off.

iv) Stabilize all cut slopes, excavated trenches, and other erosion-prone working areas while works are ongoing. Implement permanent stabilization measures as soon as possible, at least within 30 days. Phase landscaping to avoid long periods of exposed soils, especially during the rainy season. v) Limit construction and material handling during periods of rains.

228. Internal inspection and monitoring for soil erosion will be conducted by construction supervision companies; compliance inspection and monitoring will be conducted by a licensed institute following the monitoring plan defined in the EMP. Inspection and monitoring results will be submitted to the PIUs and CPMO to serve as the basis for project implementation progress reports and acceptance of construction.

Impacts and Mitigation on Biological Resources and Ecology

229. Vegetation. This project will involve the construction of two logistics facilities, which will result in permanent loss of vegetation and habitats from approximately 1,475 mu of land. Dominant vegetation types in permanent land take areas for the two logistics parks are short shrubs, grass and cultivated species. No plant species recorded in the project area of influence are under international, national or provincial protection.

230. Fauna. The project is located in urban areas and there is no fauna species recorded as protected species under IUCN or PRC protected species lists. The project will not have any adverse impacts on protected fauna within the project area of influence.

231. Protected area. There are no protected areas within the project area of influence.

232. Critical, Natural and Modified Habitats. There are no habitats within the project area of influence that would meet the ADB SPS definition of critical habitat or natural or modified habitats of conservation value.

233. Some deciduous broadleaf woodlands will be permanently lost in Output 1 site due to the land acquisition for output 1 site but they are very common woodland in the local area and not protected species. The logistics parks will be landscaped. The field survey and desk study indicate that these habitats have already been subject to disturbance by human activities. Habitats in the project area of influence are dominated by farmland followed by constructed land for village inhabitants and other facilities within the two logistics bases.

Impact and Mitigation on Socio-economic Resources

234. Land Acquisition and Resettlement. Chongqing Transportation Logistics Park will affect a total of eight village communities in Tuanjiecun area of Shapingba District by permanent land acquisition and house demolition. The total area of permanent land acquisition is 45.03 ha (675.13 mu)of collective land that includes 28.89 ha (433.15 mu) of cultivated land, 2.69 ha (40.26 mu) of home stead land, 1.22 ha (18.25 mu) of garden land, 0.92 ha (13.85 mu) of forestry land and 11.31 ha (169.62 mu) of waste land and construction land. In addition, the total area of house/building demolition is 25,635 m2, including brick-concrete houses of 14,294 m2, brick-wood of 6,222 m2, earth-wood of 1,647 m2, simple structure of 3,473 m2. No temporary land acquisition is needed. The Chongqing Transportation Logistics Park (Output 1) will affect 488 persons from 104 households, including 41 persons from 10 households affected by land acquisition only, 353 persons from 89 households affected by both land acquisition and house demolition, and 94 persons from 5 enterprises. Detailed compensation standards for land

93 acquisition are described in the Resettlement Plan (RP).

235. The Nanpeng Logistics Park (Output 2) will affect a total of four village communities by permanent land acquisition of 23.81 ha (357 mu), including cultivated land and forestry land of 23.28 ha (349 mu), and rural house demolition of 8,902 m2. The output affected 324 persons from 92 households.

236. No ethnic minority populations would be affected by this project. Land acquisition and resettlement will be in accordance with PRC and ADB policies.

237. Other Social Issues. No other social risks and/or vulnerability are anticipated as a result of the project. The project construction workers will be engaged locally as much as possible. Prevention and control of transmissible diseases and HIV/AIDS awareness training and sensitization will be provided to the contractors and it will be monitored in the social and gender action plan. Civil works contracts will specify requirements to (i) employ local people for works, (ii) ensure equal opportunities for women and men, majorities and minorities, (iii) pay equal wages for work of equal value; and (iv) no child or forced labor will be used. Specific targets for employment have been included in the gender action plan (GAP).

238. Physical Cultural Resources. Assessment undertaken did not reveal the presence of physical cultural resources within the project area of influence. Should buried artifacts of archaeological significance be uncovered during the construction stage within the project areas, construction will be stopped and immediately reported to the Banan Cultural Bureau or the Shapingba Cultural Bureau in accordance with PRC’s Cultural Relics Protection Law.

239. Occupational Health and Safety. Due to its nature, the construction industry is considered to be one of the most hazardous industries where a number of potentially hazardous operations are carried out. The civil works contractors will implement adequate precautions to protect the health and safety of construction workers. Contractors will appoint environmental, health and safety (EHS) officers to manage occupational health and safety risks on construction sites by applying the following measures:

i) Construction site sanitation: (a) each contractor shall provide adequate and functional systems for sanitary conditions, toilet facilities, waste management with waste separation, labor dormitories and cooking facilities. Effectively clean and disinfect the site. During site formation, spray with phenolated water for disinfection. Disinfect toilets and refuse bins and ensure timely removal of solid waste; (b) Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year; (c) Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection; and (d) Work camp wastewater shall be discharged into the municipal sewer system or treated on-site using a portable system. ii) Occupational safety: (a) Provide personal protective equipment (safety hats and shoes) to all construction workers; (b) Provide safety goggles and respiratory masks to workers; (c) Provide ear defenders to workers operating and working near noisy PME; and (d) Prepare and obtain approvals of method statements for hazardous activities such as excavation. iii) Food safety: Inspect and supervise food hygiene in canteens on site regularly. Canteen workers must have valid health permits. If food poisoning is discovered,

implement effective control measures immediately to prevent it from spreading. iv) Disease prevention, health services: The following disease prevention measures and health services will be undertaken: (a) all contracted labor shall undergo a medical examination which should form the basis of an (obligatory) health/accident insurance and welfare provisions to be included in the work contracts. The contractors shall maintain records of health and welfare conditions for each person contractually engaged; (b) Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents; (c) Specify (by the implementing agency and contractors) the person responsible for health and epidemic prevention and education and training on food hygiene and disease prevention to raise the awareness of workers; and (d) Provide induction and training by local health departments on prevention and management of communicable diseases v) Social conflict prevention: No major social risks and/or vulnerabilities are anticipated as a result of the project. The project construction workers will be engaged locally. Civil works contracts will stipulate priorities to (a) employ local people for works, (b) ensure equal opportunities for women and men, (c) pay equal wages for work of equal value, and to pay women’s wages directly to them; and (d) not employ child or forced labor.

240. Community Health and Safety. Temporary traffic diversions, continual generation of noise and dust on haulage routes, and general hindrance to local access and services are common impacts associated with construction works within or nearby local settlements. Localized traffic congestion may be caused by increased construction traffic near the project areas, causing temporary inconvenience to traffic, residents, commercial operations and institutions. At construction sites, different degrees of mechanical vibration will occur. Such vibration is sudden and discontinuous, which can annoy nearby residents. The constructions may also contribute to road accidents through the use of heavy machinery and trucks on existing roads. Construction may cause unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply, drainage, heating supply and gas supply, as well as to underground power cables and communication cables (including optical fiber cables). The potential impacts on community health and safety will be mitigated through a number of activities defined in the EMP. The contractors will implement the following measures:

i) Traffic management. A traffic control and operation plan will be prepared together with the local traffic police prior to any construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed; ii) Underground utilities protection. Underground utilities will be identified prior to any earth moving work. Construction activities will be planned so as to minimize disturbances to these utilities if they are located near the construction sites; iii) Information disclosure. Potential affected residents and businesses will be informed in advance of the construction activities, given the dates and duration of expected disruption and made aware of the Project GRM. iv) Construction sites protection. Clear signs will be placed at construction sites in view of the public, warning people against potential dangers such as moving vehicles, hazardous materials, excavations etc., and raising awareness on safety

issues. Heavy machinery will not be used after day light, where possible, and all such equipment will be returned to its overnight storage area/position before night. All sites will be secured, discouraging access by members of the public through appropriate fencing, signage and/or security personnel, as appropriate.

241. Risks to occupational health and safety. The construction industry is one of the most hazardous industries. Intensive use of heavy construction machinery, tools, and materials present physical hazards including noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, chemical hazards such as toxic fumes and vapors, etc. Contractors will implement adequate precautions to protect the health and safety of their construction workers. Each contractor will prepare an environmental, health and safety management plan for the construction works. The plan will include the following provisions:

i) Provide clean water for all construction sites and workers’ camps; ii) Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state; iii) Garbage bins at construction sites and camps will be set up, which will be periodically emptied and cleared to prevent outbreak of diseases; iv) Provide personal protection equipment, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection; v) An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events. A fully equipped first-aid base in each construction camp will be organized; vi) Ensure that occupational health and safety matters are given a high priority and awareness and other training will be provided to all persons working or visiting the construction sites. Safety posters will be displayed prominently in relevant areas of the site; vii) Prepare safety procedures for fuel storage areas, vehicle repair areas and other areas with potential flammable materials and smoking in these areas are strictly prohibited; and viii) Provide training all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work.

242. The EHS management plan will be aligned with relevant government regulations and guidelines on COVID-19 prevention and control, or with international good practice guidelines as updated in the future.1 The plan will be reviewed by the supervision consultant in consultation with local public health inspectors, local medical officers, or other relevant health specialists, with a recommendation forwarded to the EA for clearance. The plan will include COVID-19 prevention and control measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID- 19.

1 See e.g.: World Health Organization. 2020. Considerations for public health and social measures in the workplace in the context of COVID-19. Geneva. Available at: https://www.who.int/publications-detail/considerations-for-public- health-and-social-measures-in-the-workplace-in-the-context-of-covid-19. HM Government. 2020. Working safely during COVID-19 in construction and other outdoor work. Guidance for employers, employees and the self-employed. Available at: https://assets.publishing.service.gov.uk/media/5eb961bfe90e070834b6675f/working-safely-during-covid- 19-construction-outdoors-110520.pdf. The Canadian Construction Association – COVID-19 Standard Protocols. Available here: https://www.cca-acc.com/wp-content/uploads/2020/04/CCA-COVID-19-Standardized-Protocols-for-All- Canadian-Construction-Sites-04-16-20.pdf

H. Impacts and Mitigation Measures during Operation

243. Impact Screening. Operation of the two logistics facilities will have potential impacts on physical resources such as air quality and noise; water quality; socio-economic conditions such as public safety due to traffic and climate change due to GHG emissions from motor vehicles. Main impacts to air quality will be from the exhaust fumes emitted by motor vehicles inside the project sites. Air pollutants in the exhaust include NO2, CO, hydrocarbon (HC) and PM. Vehicle exhaust emissions contain GHGs which contribute to climate change. Vehicles coming into and leaving the logistics facilities also generate noise and vibration. Runoff from the logistics facilities into the drainage system during rainfall and spillage of fuel and other hazardous materials could potentially affect the water quality of the receiving water bodies. These potential impacts are assessed and mitigation measures described below. Operation of the project is not anticipated to have adverse impacts on ecology and biodiversity and physical cultural resources with implementation of the EMP.

1. Impacts and Mitigation Measures for Logistics Parks

244. Impact and mitigation measures related to air quality. Total vehicle emissions will be increased due to increased traffic flows to the logistic parks, but this is expected to be partially offset by reduced freight traffic in the inner city and the CMG’s measures to control vehicle emissions, which are closely related to policies and measures for emission control of Chongqing and the PRC. In 2005, the PRC promulgated the “Limits and Measurement Methods for Emissions of Pollutants from Light-duty Vehicles (Class III, Class IV)” (GB18352.3-2005), which became effective on 1st July 2007. Chongqing City conducts on-road inspection and annual inspection of vehicle exhaust pollutants. As a result of these inspections, substandard vehicles, both private and public are not allowed to use the road. The municipal EPB and the local Traffic Management Bureau are in charge of implementing all the policies and measures for vehicle emission control policies.

245. The baseline monitoring date near the proposed project sites indicate that the average concentration of NO2 in both project sites meets Class II Standard of PRC Ambient Air Quality Requirement (GB3096-1996). The implementing agency will check the maintenance and inspection records of the trucks and make sure they are routinely maintained and have passed relevant inspections.

246. Two sets of 400 kW backup diesel generators will be equipped to two office buildings as emergency power source for Nanpeng Logistics Park. The rated fuel consumption of a diesel generator is 40 kg/h with pollutant production of 1.2 kg/h NOx and 0.84 kg/h THC. The exhaust gas will go into the uptake of the roof exhaust.

247. Waste gas generated from septic tanks contains H2S and NH3. The odor decreases rapidly as the distance increases and odor will not be detected at 100m downwind. Septic tanks will be covered and located in an area more than 300m from the closest off-site receptor.

248. Impact and mitigation measures related to water quality. Wastewater generated from domestic usage will be the main wastewater during operation period. The pollutants of wastewater include COD, SS, BOD5 and NH3-H based on Construction Water Supply and Drainage Design Standard (GB50015-2003) and Water Treatment Engineering Design Manual.

249. The estimated domestic wastewater generation during operation of Output 1 is 115.2 m3/d. Construction of a septic tank with the capacity of 100 m3/d is proposed to treat the wastewater. The treated wastewater will meet Class III of the Wastewater Discharge Standard and then be discharged to the wastewater treatment plant in the base via municipal wastewater pipeline network and eventually discharged into Liangtang River after meeting the Class I-A Standard of the Discharge Standard of Municipal Wastewater Treatment Plant (GB18918-2002). A separation tank will be installed for the cafeteria to pre-treat oil in the wastewater. The estimated wastewater quality before and after treatment for Output 1 is shown in Table 4.5. The sludge from the septic tanks will be disposed by certified contractors to municipal landfills.

Table 4.5: Estimated Water Quality—Output 1 Cooking Stage Item COD SS BOD5 NH3-N Oil Discharge con. Treated after (mg/L) 350 200 200 20 20 separation tank and Discharge amount biochemical tank 12.45 8.3 8.3 0.83 0.83 (t/a)

Cooking Stage Item COD SS BOD5 NH3-N Oil Discharge con. After treated by (mg/L) 60 20 20 8 3 wastewater Discharge amount treatment plant 2.49 0.83 0.83 0.33 0.12 (t/a)

Source: Tuanjiecun EIT (Output 1).

250. The estimated domestic wastewater generation during construction of Nanpeng Logistics Park (Output 2) is 16 m3/d. Construction of a septic tank with the capacity of 30 m3/d is proposed to treat the wastewater. The treated wastewater will meet Class III of the Wastewater Discharge Standard and then be transferred to the wastewater treatment plant in the Park via municipal wastewater pipeline network and the discharged into Huaxi River after meeting the Class I-A Standard of the Discharge Standard of Municipal Wastewater Treatment Plant (GB18918-2002). The construction of the wastewater treatment plant for the Logistic Base is planned to be completed late 2015. The capacity of the proposed wastewater treatment plant is 2,000 m3/d, which is capable of treating the wastewater from proposed project. The estimated wastewater quality before and after treatment for Nanpeng Logistics Park, Output 2 is shown in Table 4.6.

Table 4.6: Estimated Wastewater Quality—Output 2

Stage Item COD SS BOD5 NH3-N Cooking oil Discharge Con. Treated after 350 200 200 20 20 separation tank Cmg/L) and biochemical Discharge 8.55 5.7 5.7 0.57 0.57 tank amount Ct/a) Discharge Con. 50 10 10 5 1 After treated by Cmg/L) wastewater Discharge treatment plant 1.43 0.29 0.29 0.14 0.03 amountCt/a) Source: Nanpeng EIT (Output 2)

251. Impact and mitigation measures related to noise. Estimated main noise sources and their sound power levels during operation of the facilities are shown in Table 4.7 and Table 4.8. In general, operational noise from machines at both project sites are in the range of 60-90 dB(A). Since the noise equipment is located indoors, the noise impact outside the property boundaries is minimal.

Table 4.7: Main Noise Sources and Sound Power Levels – Output 1 Sound Power Level No. Noise Source Amount Location CdB) Gravity Balanced Battery 1 40 60 Warehouse Area Forklift 2 Battery Forklift 20 60 Warehouse Area 3 Axial Fan 4 75 Warehouse Area 4 Backup Diesel Generator 2 90 South of #1 and #14 Buildings 5 Vehicles 400 70 Park Area Source: Tunajiecun EIT.

Table 4.8: Main Noise Sources and Sound Power Levels – Output 2 Sound Power Level No. Noise Source Amount Location CdB) Gravity Balanced Battery 1 20 60 Warehouse Area Forklift 2 Battery Forklift 10 60 Warehouse Area 3 Axial Fan 4 75 Warehouse Area 4 Backup Diesel Generator 2 90 South of #1 and #14 Buildings 5 Vehicles 200 70 Park Area Source: Nanpeng EIT (Output 2).

252. The backup diesel generators will be placed in designated rooms and the noise will be reduced by wall insulation. Also, vibration reduction pads will be installed under generators to reduce noise and vibration. No honking and speed limit requirements will be reinforced for vehicles in and out of the park. The noise from the Output 3 will be mainly from the increased traffic. Truck dispatch will consider noise impact by minimize evening loading and unloading. Speed limit will strictly enforced and honking in prohibited.

253. Impact and mitigation measures related to solid waste. Solid waste generated during the operational stage will include domestic solid waste from employees, products rejected from the inspection and quarantine process, and waste from maintenance and repair work. The estimated domestic solid waste quantities are 162 t/a from Output 1 and 36 t/a from Output 2 including organic matters, waste paper and plastic, etc. The domestic solid wastes will be collected in various bags based on their classifications. The recyclable wastes, such as waste paper and plastic, etc. will be collected for recycling, and the non-recyclables will be removed by the public sanitation department in a timely manner to prevent secondary pollution. Domestic solid waste is hauled to the landfill. Potential hazardous waste generated during the operational stage could include storage batteries for forklifts. The battery will be replaced after every 50,000 hour of usage. Such waste will be recycled by the storage battery factory. Used batteries will be stored in compliance with Hazardous Waste Storage and Pollution Control Standard (GB18597- 2001) before being recycled by the factory.

254. A 20 m2 hazardous waste storage area in compliance with Hazardous Waste Storage and Pollution Control Standard (GB18597-2001) will be constructed for outputs 1 and 2.

255. Rejected products will be re-packed in the original state and returned to the owner of the goods. This will reduce the packaging waste from rejected products. The warehouses will designate areas for collection and separate waste and recycle them as much as possible. It is estimated that 2500 plastic pallets, 2,500 wooden pallets, and 2,100 kg of cardboard boxes will be recycled.

256. Estimated pollutant production and emission conditions of Output 1 and Output 2 are shown in Table 4.9 and Table 4.10.

100

Table 4.9: Estimated Pollutant Production and Emission Condition—Output 1

Before Treatment After Treatment Parameter Source Pollutant Con. Amount Con. Emission

Constru Construction 3 3 ction TSP 1~3mg/m / 1~3 mg/m / Dust Period NOx Vehicle CO / Low / Low Exhaust THC Cooking Cooking Exhaust 12 mg/m3 Low 2.0 mg/m3 Low Air Exhaust Pollution Operati Gas on Diesel NOX / Low / Low Period Generator THC Biochemical Odorous Tank Odorous / Low / Low Gas Gas Landfill Odorous / Low / Low Odorous Gas Gas COD 400 mg/L 6.4kg/d 250 mg/L 4.0kg/d BOD5 200 mg/L 3.2kg/d 100 mg/L 1.6kg/d Constru Domestic SS 300 mg/L 4.8 kg/d 150 mg/L 2.4kg/d ction Wastewater16 Ammonia 3 20 mg/L 0.32kg/d 10 mg/L 0.16kg/d Period 16.0 m /d Nitrogen Cooking 25 mg/L 0.4kg/d 10 mg/L 0.16kg/d Water Oil Pollution COD 470mg/L 19.8t/a 300mg/L 12.45t/a SS 300mg/L 12.7t/a 200mg/L 8.3t/a Operati Domestic on Wastewater BOD5 290mg/L 12t/a 200mg/L 8.3t/a Period 115.2 m3/d NH3-N 25mg/L 1.09t/a 20mg/L 0.83 t/a Cooking 30mg/L 1.25t/a 20mg/L 0.83t/a Oil

Domestic Domestic 100kg/d EPB Constru Garbage Garbage ction Construction Constructio Period / Balanced in the Field Waste n Waste

Domestic Domestic Solid 700 t/a EPB Garbage Garbage Waste Operati General Damaged on Industrial 1100 t/a Landfill and Recycled goods Period Waste Used Used Battery Replace Battery Recycled Battery

Constructio Daytime �70 dB;Nighttime Construction Noise 90~105 dB n Noise �55 dB Noise Equipment Daytime �60 dB;Nighttime Operation Noise 60~90 dB Noise �ig dB

Source: Tuanjiecun EIT (Output 1).

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Table 4.10: Estimated Pollutant Production and Emission Condition—Output 2 Before Treatment After Treatment

Parameter Source Pollutant Con. Amount Con. Emission Construction 1～3 Construction Dust TSP / 1～3 mg/m3 / Period mg/m3 NOx Vehicle Exhaust CO / Low / Low THC Air Cooking exhaust Cooking oil 12 mg/m3 Low 2.0 mg/m3 Low Operation Pollution NOX Diesel Generator / Low / Low Period THC Biochemical Tank Odorous Gas / Low / Low Odorous Gas Landfill Odorous Odorous Gas / Low / Low Gas COD 400 mg/L 6.4kg/d 250 mg/L 4.0kg/d

BOD5 200 mg/L 3.2kg/d 100 mg/L 1.6kg/d Domestic Construction SS 300 mg/L 4.8 kg/d 150 mg/L 2.4kg/d Wastewater Period 3 Ammonia (16.0m /d) 20 mg/L 0.32kg/d 10 mg/L 0.16kg/d Nitrogen

Water Cooking Oil 25 mg/L 0.4kg/d 10 mg/L 0.16kg/d Pollution COD 460mg/L 13.22t/a 350mg/L 8.55t/a

Domestic SS 300mg/L 8.49t/a 200mg/L 5.7t/a Operation Wastewater BOD5 280mg/L 8.04t/a 200mg/L 5.7t/a Period 3 (79.2m /d) NH3-N 27 mg/L 0.73t/a 20mg/L 0.57t/a Cooking Oil 27mg/L 0.73t/a 20mg/L 0.57t/a Domestic Domestic Garbage 100kg/d EPB Construction Garbage Period Construction Construction / Balanced in the Field Waste Waste Domestic Domestic Garbage 180 t/a EPB Garbage Comply with Industrial Waste Solid Waste Treatment Class I packages Waste Industrial waste and broken 960t/a requirement; recycle packaging waste to waste Operation goods Period recycle facility Hazardous Collect and transfer to Waste engine oil 0.5t/a waste certified treatment facility Waste cotton, Hazardous Collect and transfer to 1t/a glooves waste certified treatment facility Used Battery Used Battery Replace Battery Recycled

Construction Daytime �ay dB; Construction Noise 90～105 dB Noise Nighttime �ig dB Noise Equipment Daytime �60 dB; Operation Noise 60～90 dB Noise Nighttime �50 dB

Source: Nanpeng EIT (Output 2).

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257. Mitigation Measures and Costs. Proposed mitigation measures, cost and results of the two logistics parks are shown in Table 4.11 and Table 4.12.

Table 4.11: Estimated Mitigation Measures, Cost and Results—Output 1

Emission Cost Pollutant Mitigation Measures Results Source CNY10000) Construction Isolate construction site and water No impact on Dust 8.0 site construction site regularly ambient air

Vehicle NOx No impact on CO / 0 Exhaust ambient air THC In Cooking Cooking Install cleaning equipment, emit through 5.0 Air exhaust exhaust roof compliance Pollution Diesel NOX No impact on Emit through roof 3.0 generator THC ambient air

Biochemical H2S No impact on Emit through roof - gas NH3 ambient air

No impact on Landfill gas Odorous gas Remove regularly 3.0 ambient air Domestic Meet

wastewater Treated in septic tank and discharge into standards COD,SS 8.0 during the municipal pipeline network and construction discharge Water COD Pollution Domestic Build rain sewage separation pipeline; Meet NH3-N wastewater treat wastewater in biochemical tank then standards SS 10.0 during discharge into the wastewater treatment and Petroleum operation plant for further treatmento discharge Cooking oil

Construction Construction Transport construction waste to Comply with 6.0 environmenta solid waste waste designated area l regulations

Domestic Domestic Comply with environmenta waste Transport waste to designated area 4.0 waste l regulations Solid Used Waste Follow industrial solid waste Class I Comply with Industrial package, disposal standard; Recyclable package 10.0 environmenta solid waste damaged materials will be sent to recycle centers l regulations goods Comply with Used battery Used battery Recycle at battery plant 5.0 environmenta l regulations Meet Construction Mechanical Follow regulations, no construction standards, 1.0 site noise during 10pm to 6am Not disturb

residents Noise Meet Use low noise equipment; follow no Equipment, standards, Noise honking, speed limit requirements, use 5.0 vehicle noise Not disturb sound barrier residents

Plantation Green area: 15570.78 m2 25.0 Others Water and soil conservation 20.0

Total 113.0

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Source: Tuanjiecun EIT (Output 1).

Table 4.12: Estimated Mitigation Measures, Cost and Results – Output 2

Emission Cost Pollutant Mitigation Measures Results Source (CNY10,000) Construction Isolate construction site and water No impact on Dust 6.0 Site construction site regularly ambient air

NOx Vehicle CO No impact on Exhaust / 0 ambient air THC Equip with cooking oil purification Cooking Oil No impact on Cooking oil 5.0 Emission device; oil emission channel shall be at ambient air Air Pollution least 2 m over the roof Diesel NOX No impact on Emit through the roof 3.0 Generator THC ambient air Biochemical H2S No impact on tank Emit through the roof - NH3 ambient air emission

No impact on Landfill gas Odorous gas Remove regularly - ambient air Domestic Treated in temporary biochemical tank Meet wastewater COD,SS and discharge into the municipal 4.0 discharge during pipeline network standard construction Water Pollution Domestic COD Build rain sewage separation pipeline; Meet wastewater NH3-N treat wastewater in biochemical tank 10.0 discharge during SS then discharge into the wastewater standard operation Petroleum treatment plant for further treatment

Construction Construction Transport construction waste to Comply with 4.0 environmental solid waste waste designated area regulations

Domestic Domestic Comply with environmental waste Transport waste to designated area 2.0 waste regulations Waste Comply with Industrial Waste General Comply with packages, Treatment Class I requirement; recycle industrial 8.0 environmental broken packaging waste to waste recycle Solid Waste waste regulations goods facility

Used battery Recycle at battery plant 5.0 Wasted Collect and transfer to assigned mechanical 1.0 Comply with Hazardous treatment facility oil environmental waste Wasted regulations Collect and transfer to assigned cotton and 2.0 treatment facility oily gloves

Meet

Construction Mechanical Follow regulations, no construction standards, Not 1.0 site noise during 10pm to 6am disturb

residents Noise Meet Use low noise equipment; follow no Equipment, standards, Not Noise honking, speed limit requirements, use 4.0 vehicle noise disturb sound barrier residents

104

Emission Cost Pollutant Mitigation Measures Results Source (CNY10,000)

Plantation Green area: 11437 m2 20.0 Others Water and soil conservation 20.0

Total 95.0 Source: Nanpeng EIT (Output 2).

2. Impacts and Mitigation of Inland Waterway Transport

258. Output 3 is not subject to any domestic environmental assessment procedures since there is no civil works involved in Output 3. The implementing agency and PIU3 agreed to establish baseline surface water quality, noise and ambient air conditions prior to the operation of Output 3 and to undertake annual monitoring during operation.

259. There are two main sources of pollution from the operation of this output: one is from the haul trucks (tail gas emissions and noise); the other is from the ro-ro ships including exhaust emission, waste disposal, and sewage discharge.

260. Vehicle Pollution Control. Mitigation measures includes (i) purchasing vehicles with lower emissions; (ii) choosing cleaner fuels, such as LNG for vehicles to be procured; (iii) using highways and minimize using of local narrow roads; (iv) gathering the trucks at cargo terminals to load and unload so that noise pollution could be controlled.

261. Vessel Pollution Control. According to the PIU’s operational requirements, mitigation measures to minimize vessel pollution must be strictly implemented as follows:

(i) When adding fuel and lubrication, relevant regulations must be strictly implemented. The staff in charge of fueling must be present at all time. (ii) Before adding fuel to the vessel, the level of oil in the fuel tank should be checked and measured. The fuel tubes should be checked and connection points should be inspected. Oil drip pans are placed underneath the joints. (iii) During the fueling operation, the oil level should be monitored closely to avoid oil overflow. If anything happens, oil loading operation should be stopped immediately; the cause of leak should be identified, and corrected before the fueling operation could be continued. In case of oil spill, fueling operation must be stopped immediately and oil spill shall be contained and cleaned up according to The Oil Spill and Pollution Emergency Plan. (iv) Waste water and trash produced by vessels should be collected and disposed of at ports and piers in order to effectively reduce pollution.

I. Cumulative and Induced Impacts

262. CMG has ambitious goals of developing the logistics infrastructure system in urban Chongqing area. Chongqing Transportation Logistics Park (Output 1) is located in Chongqing Railroad Logistics Base in Shapingba District. The base will serve as the main railroad logistics center to provide railroad and highway logistics services for the southwest region of the PRC. The total area of the base is about 33 square kilometers (more than 73 times size of the Output 1 land site). The construction of the infrastructures within the base has started and some enterprises have moved in to start logistics operation. Currently, it is estimated about 15 square kilometers of the base has been completed and in operation, it is planed that the remaining part

105 will be completed by 2020. Inside the logistics base, there will be railroad trade and logistics area, railroad service area, railroad operation area, intermodal transport area, trade service area, railroad port tax free area, and railroad port service area.

263. The Nanpeng Logistics Park (Output 2) is located in Chongqing Roadway Logistics Base in Banan District. It serves as the main logistics center in the region and provides logistics services to southeast and southwest two major export routes to Southeast Asia and the sea ports in the coastal area such as Shanghai. The total area of the base is over 35 square kilometers (about 70 times of the Nanpeng Logistics Park site). The construction of the infrastructures within the base has started and some enterprises have moved into the base.

1. Cumulative Impact

264. According to the PRCf the infrastructures within the base has started and some enterprises have moved in impact assessment for the entire base. The planning environmental impact reports (EIRs) for both bases were prepared and submitted to Chongqing EPB. The cumulative impacts of the project are addressed in these planning EIRs. The planning EIRs were approved by Chongqing EPB on 12 May 2009 for Chongqing Railroad Logistics Base (Output 1 site) and on 21 February 2011 for Chongqing Roadway Logistics Base (Output 2 site), respectively. The EIRs have provided environmental baseline data and identified the main environmental impacts, which are similar for both logistics parks. The main impacts are summarized in the following paragraphs.

265. Air quality. Air pollution during construction period includes NOx and CO emissions from construction vehicles; fugitive dust emissions from various earth moving construction activities, blasting and demolition work. Air pollution and particulate matter emissions during operation of the logistics base are mainly from the freight vehicles in and out the bases since there will be no manufacture facilities in these bases.

266. Acoustic environment. Main noise sources during construction include mechanical and machinery equipment, vehicles and other construction activities. During operation phase, main noise sources include mechanical and electrical equipment and vehicles.

267. Water quality. Wastewater is generated during construction phase by various construction activities and workers. The main pollutants are COD and SS. For Chongqing Railroad Logistics Base, it is estimated that highest wastewater generation from construction activities and workers are 30 m3/day and 70 m3/day, respectively. The amount of wastewater containing oil grease is about 10 m3/day. For Chongqing Roadway Logistics Base, it is estimated that highest wastewater generation from construction activities and workers is 90 m3/day and from maintenance and washing is 50 m3/day.

268. Solid waste. During the construction phase, solid waste will be generated from borrow areas and spoil piles, C&D waste, waste construction materials, trash from construction workers. During operation phase, solid waste will be generated from package materials and office trash.

2. Mitigation for Cumulative Impact

269. The proposed mitigation measures in the planning EIRs for the two logistics bases are summarize as follows:

270. Air quality. Construction sites will be enclosed by hoarding of at least 1.8 m high; spray

106 water to suppress dust; harden the surface of entrance and exist of construction sites; wash vehicles before leaving construction sites; cover lose material stockpiles; and prohibit burning of trash; set low speed limits to reduce fugitive dust from road; dirty vehicles that have been phased out will not be allowed to enter the base.

271. Noise. Contractors are required to prepare and submit their noise management plans to the local EPBs 15 days prior start of contraction activities at a site. Once approved by the EPBs, the contractors shall inform the residents who could be potentially affected. Select construction equipment with low noise levels and reduce the operating time of high noise equipment. Construction activities shall be minimized at night. Vehicles should be scheduled to access the construction sites during day time as much as possible. Provide PPE to workers who work with high noise equipment.

272. Noise sources during operation phase mainly from mechanical equipment and vehicles. During the operation phase, equipment that generates noise will be enclosed to an indoor environment as much as possible so the ambient noise levels will be substantially reduced. Low speed limits will be imposed in the bases and speed bumpers will be installed on all main roads inside the bases. Honking is prohibited inside the bases.

273. Solid waste. Contractors will be encouraged to recycle as much materials on site as possible. The remaining solid waste will be hauled away by waste management companies to municipal landfills. Totally enclosed trash collection stations with a capacity of 20-25 m3 each will be constructed throughout the bases about every 200-400 m. Other special wastes such as oil grease waste will be collected separately and taken away by professional companies.

274. Water quality. During construct period, prepare drainage ditches and water sedimentation ponds at construction sites. Wastewater from vehicle washing will be collected, oil grease removed and treated through sedimentation ponds. Treated water will be recycled at construction site. Worker’s camps will be located as far as possible from draining ditches and sanitary water is prohibited to be discharged to any waterbody. Portable toilet will be provided to workers on construction sites. Soil erosion plan will be implemented.

275. During the operation phase, it’s estimated that the Chongqing Railroad Logistics Base (Output 1 site) will generate 78,200 m3 wastewater per day which will be collected and sent to local municipal WWTPs for treatment. For Chongqing Roadway Logistics Base, the maximum wastewater generated during operation will be 7,400 m3/day. A WWTP will be built inside the logistics base with a capacity of 8,000 m3/day. The stormwater collection pipeline system will be separated from the sewer systems inside the bases.

276. Conclusion. The EIRs concluded that the environmental impacts are relative moderate and with the implementation proposed mitigation measures, the residual impacts can be controlled to acceptable levels.

3. Indirect and Induced impact

277. The indirect and induced impacts of the project include more freight truck traffic to the logistics parks and less such traffic to the central Chongqing districts. These factors have been considered in the traffic forecasts of the project. Negative indirect and induced impacts from this project are not expected.

4. Occupational Health and Safety

278. COVID-19 prevention and control measures will be taken following the PRC government regulations and guidelines or international good practice guidelines as updated in the future (footnote 1), such as disinfection/cleaning of offices and work places, on-site temperature

107 checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff/worker is infected with COVID-19.

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J. Climate Risks Assessment and Adaptation

1. Climate Risks

277. The latest climate science points to an increasingly rapid pace of climate change over the forthcoming decades. Such change will likely alter the long term climatic averages and, in particular, the frequency and severity of extreme weather events. Heat extremes and extreme rainfall, as well as floods are likely to become more intense and more frequent during this century. The potential climate risks to urban infrastructure such as logistic parks mainly come from temperature and precipitation, and usually caused by their extremes and aftermath. Extreme rainfall events can lead to urban waterlogging if the drainage system has inadequate capacity which could result in damage to roads and warehouse facilities. A climate risk and vulnerability analysis was carried out for this project, the report is included in Appendix II and is summarized in the following section.

278. Flood hazards in Chongqing. Chongqing has a well-developed river network system with 96 rivers crossing its urban area. Besides the Yangtze River and Jialing River, there are 20 rivers that have catchment areas larger than 100 km2. River flood has been the biggest climate hazard to the city, followed by urban flood (waterlogging) caused by localized severe storm. The flood of Yangtze River and Jialing River is caused by long periods of heavy rainfall in the headstream of the large mountain areas outside of the city boundary. This type of flood is generally characterized by large amounts of discharge and high flood peak, with long duration (about 8 days), such as the flood of 1954 and 1998. The flood from the middle and/or small rivers is usually caused by local torrential rain, which is high intensity and short duration (1-3 days). A high water level in the Yangtze River and Jialing River may prevent inflow from tributary rivers, as was the case during the floods in 1870 and 1981.

279. Chongqing does not have major flood protection in upstream areasThe urban stormwater drainage system was built during the 1960 to 70s and does not have sufficient stormwater drainage capacity making Chongqing vulnerable to flood. The flood of July 1981 inundated vast urban areas along the Yangtze River and Jialing River; and affected more than 133,000 people; damaged 2560 km2 of housing; cut-off the train transport from Chongqing for 9 days; and stopped the Yangtze River navigation for 7 days. The direct economic loss was as high as CNY180 million (1981 price). Clearly river flood and urban flood are the biggest climate risks to the project and they may cause damage to the logistic park infrastructure and the disruption of logistic operations.

280. Temperature projection. The project is located in the sub-tropic monsoon Asia climate zone with warm temperature. By 2050, the annual average temperature is projected to increase 1.4°C under a mid-emissions scenario.

281. Average rainfall projection. The precipitation in Chongqing is characterized by relative high inter-annual variability and seasonality. The annual average rainfall of Shapingba District is 1100 mm. The maximum was 1617 mm recorded in 2014, while the minimum was 740 mm in 1958. The average rainfall of the rainy season from May to September is 757 mm, which accounts for almost 60% of the annual total. The average annual rainfall is projected to increase by 2.3% and 4.7% by 2050 and 2100, respectively, applying the mid scenario.

282. The monthly rainfall change applying the mid scenario projection is relatively small, particularly for the dry season. Rainfall is projected to increase for all months except October. The rainfall increase in the rainy season is relative large, and generally has a large uncertainty

109 range.

283. Extreme rainfall projection. The generalized extreme value (GEV) distribution was applied to the annual maximum daily precipitation analysis. The current 1:20 year event of the annual maximum daily rainfall is 180.29 mm for Shapingba District. The mid scenario projection for such an event is 192.44 mm by 2050 and 204.13 mm by 2100, which represents a 6.7% and 13.2% increase in rain intensity.

284. In summary, climate change will likely lead to rainfall increase for the project area. The increase in normal rainfall may just be noticeable, but the change in heavy rainfall is likely to be significant, which implies an increased flood risk in the future.

285. Compared to temperature, climate change impact on frequency and intensity of storm events and flood risk is much more significant.

2. Adaptation Measures

286. To avoid costly maintenance and/or business disruption in the future, it has been recommended that the project integrate climate resilience measures into project design and construction. The following adaptation options are being implemented:

287. River flood as the main risk. River flood is the main climate risk to the project. The CMG has developed plans for both short and long term to protect the transport system and important industries, which include river channel dredging, embankment improvement and building reservoirs at the upstream area for flood water storage. There are 10 reservoirs in the plan, which have a total water storage capacity of 4.9 billion m3. The urban flood protection engineering will be based on 1:100 flood level for both Shapingba and Banan Districts.13 Two of the planned reservoirs were constructed in 2015, another reservoir and significant river bank improvement programs are planned for 2016.

288. Drainage system. The drainage system may need to be adjusted to a higher design standard to address climate risks. A conservative 6% increase of the sewage and drainage capacity is recommended, and a 10% increase for the two logistics parks would be more appropriate, given the difficulty of repair and replacement of urban drainage systems in the future.

289. Stormwater management and rainwater reuse. Conventionally stormwater runoff is collected through catch basins and discharges to the nearby rivers through stormwater drainage systems. This practice changes the ecological condition, increases the flood level in downstream areas, and also pollutes rivers. Urban flooding in PRC cities during heavy rains is often the direct result of this practice. The current acceptable practice for stormwater management is that project development should have little or no impact on water levels. This will be achieved by integration of stormwater retention facilities, such as infiltration and detention ponds, permeable paving and roof rain water collection and recycling systems. The landscaping design incorporates ‘sponge city’ concepts to maximize retention and reuse of stormwater and to minimize discharge levels.

13 Chongqing Hydraulic Bureau, 2006.

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V. ANALYSIS OF ALTERNATIVES

290. During the project preparation, various alternatives for the project were considered, screened, and studied against technical, economic, social, and environmental criteria. The primary objective with respect to environmental criteria was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits.

A. Without-Project Alternatives

291. The “do-nothing” alternative was considered. Presently most of the logistics terminals in Chongqing are located within the inner city region and ring road. This results in a considerable amount of heavy freight traffic, mostly large trucks, moving on the inner city roads and causing traffic congestion, noise, air pollution and even road accidents. Since 1 April 2014, the CMG has restricted the movement of big trucks in parts of the inner city area during certain times of the day. These restrictions are expected to expand in the future to alleviate growing traffic congestion in the inner city. Hence there is a need to move all logistics facilities to areas beyond the inner ring road.

292. Moreover the existing infrastructure of these logistics terminals in Chongqing is inadequate and thus an impediment for providing efficient logistics services. Many of these terminals cannot provide all the required logistics services in one location resulting in unnecessary freight movements which add to the problem. The logistics infrastructure also needs to be expanded and modernized to meet the growing requirements of the city, the Liangjiang New Area as well as the international rail corridor.

293. The consequences of which are limited economic and social development, worsening traffic congestion problems in center areas of Chongqing, further deterioration of local air quality, and increasing traffic accidents caused by the heavy freight trucks delivering goods in city centers. A more detailed rationale is provided in Section II of this IEE, the “do-nothing” alternative is rejected.

B. Alternative Locations

294. Since the logistics parks need to be located close to main highways or railways and they occupy large land areas, there are limited options to locate these logistic parks elsewhere. Based on Chongqing Transportation Master Plan, there are three large logistic bases strategically located around Chongqing urban centers. It’s logical to locate the two proposed logistics parks inside these logistics bases.

295. Nanpeng logistics park is located inside Chongqing Roadway Logistics Base in the south part of Chongqing. There are five highways that run through or near the logistics base and three river ports near the logistics base. It’s very convenient for logistics facilities to locate in the base since it has easy access to the city bypass expressways and inland waterway. The project site location is shown in Figure 5.1.

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Figure 5.1: Chongqing Roadway Logistics Base Location

296. Chongqing Transportation Logistics Park is located inside Chongqing Railroad Logistics Base in the west part of Chongqing, between Liangtan River and Zhongliang Mountain. It is located just north of Tuanjiecun Railway Container Center, the starting point of the first inter- continental railroad line connecting Chongqing to Europe and one of the 18 national container centers. The planned annual container handling capacity is 2 million twenty-foot container equivalent. It will handle goods exporting to Europe and transferring to other parts of the PRC by rail. The proposed location is in the center of rail transportation hub and thus it is the best option for logistics parks. The location of the project site is shown in Figure 5.2.

Figure 5.2: Location of Chongqing Transportation Logistics Park

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VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. PRC and ADB Requirements

297. PRC requirements. On 24 April 2014, the People’s Congress of the PRC passed the revised Environmental Protection Law, which became effective on 1 January 2015. The new law enhanced information disclosure and public participation requirements by adding a separate chapter with six clauses. On 10 April 2015, the MEP issued a draft guideline entitled Methods of Public Consultation for Environmental Protection for public to comment and it has three main chapters, public consultation, and public supervision and safeguard measures. This guideline is expected to be finalized and effective in 2015.

298. Relevant provisions in the Environmental Impact Assessment Law (2003) of the PRC and the Regulations on the Administration of Construction Project Environmental Protection (No. 253 Order of the State Council, 1998) require that an EIA report prepared by a certified EIA Institute for a construction project shall solicit the opinions of organizations concerned, residents and other affected persons within and nearby the project sites. The PRC National Development and Reform Commission (NDRC) issued a new requirement for “Social Risk Assessment of Large Investment Projects” in August 2012, which emphasizes the importance of public consultation in an effective manner, and requires that the results of public consultation are clearly summarized in the EIR report for Category A projects, including the dates of consultations, number of stakeholders, the comments received, etc. However, for a construction project with less than significant environmental impact (Category B or lower), only a simplified EIT needs to be completed and public consultation requirements do not apply. Since the Project and its components are classified as Category B for environmental impact by the PRC authorities, public consultation is not required as per PRC regulations. However, the EIT is required to be disclosed to the public by the local EPB.

299. ADB requirements. The ADB SPS requires that the borrower carries out meaningful consultation with affected persons and other concerned stakeholders, including civil society, and facilitates their informed participation. Meaningful consultation involves two-way communication between the borrower and the affected communities and stakeholders and active participation in project design and implementation. ADB Public Communications Policy (2011) and Safeguard Policy Statement (2009) require that relevant information on potential project impacts and mitigation measures and the IEE must be made available, in a timely manner, and before project appraisal, in an accessible place, and in a form and language(s) understandable to project–affected people and other stakeholders. For environment Category B projects, the IEE submitted by the borrower is made available to interested stakeholders before project approval by the Board. The IEE must document public consultation and information disclosure carried out during project preparation, and specify ongoing public consultation requirements for project implementation.

300. The information disclosure and public consultation conducted for the project, key activities and results are presented in the following sections.

B. Information Disclosure

301. Information disclosure is intended to facilitate constructive engagement with affected communities and stakeholders over the life of the project.

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302. Information disclosure and public consultations were conducted in the project areas of Output 1 and Output 2 in accordance with the PRC Guidelines for Public Consultation for EIA (2006). The information disclosure and consultations included: i) questionnaire survey; and ii) public bulletin postings. The project information, its potential environmental impacts and proposed mitigation measures have and will be disclosed to the public, as follows:

(i) The project summary information for Output 1 and Output 2 are available for review on the implementing agency’s websites (http://www.cqtransit.com/more.php?i=3608 and http://www.cqtransit.com/more.php?i=3607) as shown in Figure 6.1. Draft FSRs and EITs were summarized and disclosed to the public. Preliminary findings of the EITs, including the potential impacts identified, proposed mitigation measures, as well as the arrangements for environmental management during both project construction and operation were included in the information disclosure; (ii) The project summary information for Output 1 and Output 2 were posted in the affected communities and public meetings were held (Figure 6.2); (iii) The full EIT for Output 1 was disclosed on Shapingba District EPB’s website on 12 October 2015 for public to download review and comment (http://www.cqbnhb.gov.cn/Html/1/wryhjjgxx/jsxmhpgswryhjjgxx/jsxmhpgs/hpsl/20 15-10-08/2361.html). The webpage of the public notice was captured and is shown in Figure 6.3. (iv) The full EIT for Output 2 was disclosed on Banan District EPB’s website on 8 October 2015 for public to download, review and comment (http://www.spbepb.gov.cn/showNews.aspx?id=1976) and the public can the EIT. The webpage of the public notice is shown in Figure 6.4. (v) This IEE will be disclosed on ADB’s website at www.adb.org before the project is considered by the ADB Board; and (vi) All annual environmental monitoring reports and project progress reports will be available on ADB’s website during the implementation of the Project.

Output 2: Nanpeng Logistics Park Output 1: Chongqing Transportation Logistics

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Park Figure 6.1: Web-site Information Disclosure for Chongqing Transportation Logistics Park in Tuanjiecun (Output 1) and Nanpeng Logistics Park, Nanpeng (Output 2)

Posting in Nanpeng Posting in Tuanjiecun

Posting in Tuanjiecun Public Meeting in Tuanjiecun

Public Meeting in Tuanjiecun Public Meeting in Tuanjiecun Figure 6.2: Public Posting in Affected Communities and Consultation Meetings

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Figure 6.3: Disclosure of EIT for Output 1 on Chongqing Shapingba District EPB’s Website

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Figure 6.4: Disclosure of EIT for Output 2 on Chongqing Banan District EPB’s Website

303. During information disclosure process, representatives of implementing agency also communicated with local communities and villages, companies, organizations and other affected persons (APs) nearby project sites to collect public opinions for the project.

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C. Consultation

304. A questionnaire survey method was used to consult affected persons and stakeholders on the project and its environmental impacts.

1. Output 1: Chongqing Transportation Logistic Park in Tuanjiecun

305. Fifty three (53) questionnaires were distributed by the EIA Institute to APs and stakeholders from different age groups, genders, and educational backgrounds that live in the project area (Table 6.1). All questionnaires were completed and returned. The survey results are summarized in Table 6.2.

Table 6.1: Profile of Respondents of Questionnaire Survey

Basic Information of the Consulted APs No. of Respondents Percentage (%) Male 33 62.4 Gender Distribution Female 20 37.6 <20 0 0 20-29 1 1.9 Age Group 30-39 1 1.9

40-60 30 56.6 >60 21 39.6 College and above 0 0 High School 3 5.7

Educational Backgrounds Middle School 20 38.8

Elementary School 29 54.7 No formal education 1 1.9 Source: Tuanjiecun EIT (Output 1)

306. It can be seen from Table 6.1 that the survey covered an age range from 20 up to 60 and above, with 62.4% being male and 37.6% female. Since the project is located at a village the education levels of the survey participants are quite low. There were no participants with college level education and more than 94% had only middle school or less education. More than half of participants had only elementary school or less education (56.6%).

Table 6.2: Summary of Questionnaire Survey Results – Tuanjiecun (Output 1)

No. of Percentage No. Questions Option Respondents (%)

Did you hear about the project Very clearly 0 0 1 component prior to this meeting? Generally 28 52.8 Do not know 25 47.2

Very good 7 13.2

What do you think about the Good 31 58.5 2 current local environment conditions? Fair 10 18.9 Negative 5 9.4 What do you think about the main Air pollution 32 60.4 3 impact from the construction of this Surface water pollution 13 24.5 project? Noise pollution 25 47.2

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No. of Percentage No. Questions Option Respondents (%)

Ecological damages 14 26.4 Landscape 5 9.4 No pollution 7 13.2

Air pollution 28 52.8

Surface water pollution What do you think about the main 14 26.4 4 impact from the operation of this Noise pollution 23 43.4 project? Solid Waste 11 20.8 No Pollution 8 15.1

Yes Do you think the proposed project 49 92.5 5 will improve the local economy and No 1 1.9 quality of life? Do not know 3 5.7 Positive impact 33 62.3

What overall impact do you think 2 3.8 6 this project will have on your life? Negative impact No impact 18 34.0 Agreed 53 100.0 What is your attitude towards this 0 0.0 7 project overall? Oppose No concern 0 0.0 Air pollution 34 64.2 Which issues should the project Surface water pollution 10 18.9

developer pay more attention to Noise pollution 25 47.2 8 during construction and/or Ecological damages 15 28.3 operation? Landscape 4 7.5 No pollution 7 13.2 9 What is your suggestion for the project? Source: Tuanjiecun EIT (Output 1).

307. It can be seen from Table 6.2 that a significant number of participants (47.2%) were not aware of the project. However, prior to questionnaire distribution, the project scope and its environmental impacts were introduced to the participants so they have a much better understanding of the project after the meeting and survey. The environmental impact the local people are most concerned about is the noise generated from the construction activities and traffic. Most consulted APs (92.5%) believe that the project will improve the local social and economic development, and enhance residents’ living conditions. All consulted persons (100%) support Chongqing Transportation Logistics Park Output 1. The main issues raised by the respondents include: (i) resettlement and related compensation; (ii) the need for noise and dust control, and traffic management during construction and operation; and (iii) landscaping maintenance during operation.

308. Suggestions provided by the respondents included: (i) avoiding construction activities at nighttime to minimize the noise; (ii) proper planning to avoid repeated excavation of underground pipelines; (iii) water spraying during construction to minimize fugitive dust emissions; (iv) timely disposal of construction wastes and enclosure during storage and transport; (v) improve vegetation along roads to reduce the noise during operation; and (vi) pay the compensation for land acquisition on time. All these considerations have been included as mitigation and management measures in the EMP.

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2. Output 2: Nanpeng Logistics Park

309. The questionnaire survey was conducted during March 2015. Questionnaires were distributed to fifty (50) affected persons living in the resettled areas and beneficiaries from different age groups, genders, and educational backgrounds (Table 6.3). All questionnaires were completed and returned. The survey results are summarized in Table 6.4.

Table 6.3: Profile of Respondents of Questionnaire Survey - Nanpeng

Basic Information of the Consulted APs No. of Respondents Percentage (%) Male 29 58 Gender Distribution Female 21 42 <20 1 2 20-29 24 48 Age Group 30-39 14 28

40-60 11 22 >60 0 0 College and above 29 58 High School 19 38 Educational Backgrounds Middle School 2 4 Elementary 0 0 Source: Nanpeng EIT (Output 2)

310. According to Table 6.3, the survey covered an age range from less than 20 up to 60, with 58% being male and 42% female. More than half of the participants have an education level of college or above (58%).

Table 6.4: Summary of Questionnaire Survey Results - Nanpeng

No. of No. Questions Answers Percentage (%) Respondents Did you hear about the project Very clearly 6 12 1 component prior to this Generally 34 68 meeting? Not sure 10 20 Very good 13 26 What do you think about the Good 19 38 2 current local environment conditions? Fair 14 28 Negative 4 8 Air pollution 17 34 What do you think will be the Surface water pollution 13 26 3 main impact from the Noise pollution 14 28 construction of this project? Ecological damages 12 24

Landscape 12 24 Air pollution 22 44 What do you think will be the Surface water pollution 10 20 4 main impact from the operation of this project? Noise pollution 15 30 Solid Waste 16 32 5 Do you think the proposed Yes 35 70 project will improve the local No 10 20

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No. of No. Questions Answers Percentage (%) Respondents economy and quality of life? Do not know 5 10 What overall impact do you Positive impact 26 52 6 think this project will have on Negative impact 7 14 your life? No impact 17 34 Agreed 36 72 7 What is your attitude toward this project overall? Oppose 0 0 No concern 14 28

Air pollution 11 22 Which issues should the 8 project developer pay more Surface water pollution 12 24 attention to during Noise pollution 43 86 construction and/or operation? Ecological damages 9 18 Landscape 9 18 9 What is your suggestion for the project? Source: Nanpeng EIT (Output 2)

311. It can be seen from Table 6.4 that 20% of survey participants were not aware of the project prior to consultation. In the PRC, the first round of information disclosure (i.e., introducing the project) is through the government’s website or newspaper. In addition, notices for the public consultation and a brief introduction of the project are posted on bulletin boards of villagers committees’ offices near the project sites. The questionnaire survey was conducted in a public meeting and the EIA institute introduced the project and its scope prior to questionnaire distribution. 72% of the consulted APs support the project, and believe that the project will improve the local social and economic development, and enhance residents’ living conditions and 28% of consulted people expressed their indifference towards the project. The main issues raised by the public consultation process include: (i) resettlement and related compensation; (ii) the need for noise and dust control, and traffic management during construction and operation; and (iii) landscaping maintenance during operation. Suggestions provided by the respondents included: (i) avoiding construction activities at nighttime to minimize noise; (ii) proper planning to avoid repeated excavation of underground pipelines; (iii) water spraying to minimize dust; (iv) timely disposal of construction wastes and enclosure during storage and transport; (v) improve vegetation along roads to reduce the noise during operation; and (vi) pay the compensation for the land on time. All these considerations have been included as mitigation and management measures in the EMP.

312. Additional consultation near Output 2 site. Other than the resettled areas, there are some individual houses scattered to the south and southeast of the proposed project site (about 300 m – 1,000 m from the site). Since these households could be potentially affected by the construction and operation of Output 2 facility, additional questionnaire surveys from 10 households were conducted in October 2015. The survey results are summarized in Table 6.5. The profile shows that the survey covered an age range from 20 to 39 with 80% being male and 20% female. Most participants have an education level of high school (60%).

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Table 6.5: Profile of Respondents of Additional Questionnaire Survey (Output 2) Basic Information of the Consulted APs No. of Respondents Percentage (%) Male 8 80 Gender Distribution Female 2 20 20-29 3 30 Age Group 30-39 7 70 College and above 1 10 High School 6 60 Educational Backgrounds Middle School 2 10 Elementary School 1 10 Source: EIA Institute

Table 6.6: Summary of Additional Questionnaire Survey Results (Output 2) No. of No. Questions Answers Percentage (%) Respondents 1 Did you hear about the project Very clearly 0 0 component? Generally 10 100

Not sure 0 0 2 What do you think about the Very good 1 10 current local environment Good 4 40 conditions? Fair 5 50

Negative 0 0

3 What do you think will be the Air pollution 3 30 main impact from the Surface water pollution 1 10 construction of this project? Noise pollution 8 80

Ecological damages 0 0

Landscape 1 10 4 What do you think will be the Air pollution 5 50 main impact from the Surface water pollution 2 20 operation of this project? Noise pollution 4 40

Solid Waste 0 0

5 Do you think the proposed Yes 10 100 project will improve the local No 0 0 economy and quality of life? Do not know 0 0 6 What overall impact do you Positive impact 6 60 think this project will have on Negative impact 0 0 your life? No impact 4 40 7 What is your attitude toward Agreed 10 100

this project overall? Oppose 0 0 No concern 0 0

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No. of No. Questions Answers Percentage (%) Respondents 8 Which issues should the Air pollution 6 60 project developer pay more Surface water pollution 1 10 attention to during construction and/or operation? Noise pollution 2 20

Ecological damages 0 0

Landscape 3 30 9 What is your suggestion for the project? Source: EIA Institute

313. It can be seen from Table 6.6 that 100% of survey participants were aware of the project prior to consultation. This is probably because they are living fairly close to the project site. All the consulted households support the project, and believe that the project will improve the local economic development, and enhance residents’ living conditions. The main issues raised include: (ii) the need for air quality control, surface water protection, noise control, landscape management during construction and operation. Mitigation measures for these issues have been included in the EMP.

D. Future Consultation

314. Dialogue will be maintained with the APs and stakeholders throughout project implementation by continued consultation as needed. Such dialogue will ensure that public concerns are understood and dealt with in a timely manner. A consultation and participation plan during construction and operation has been developed, which is presented in the attached EMP. Future consultation will be undertaken via questionnaire surveys, household visits, workshops, and public consultation meetings.

VII. GRIEVANCE REDRESS MECHANISM A. Introduction

315. Residents and/or organizations affected by the project activities were encouraged to provide comments on the domestic FSRs, EITs, the IEE and the EMP. However, other environmental issues and concerns may develop during both construction and operation periods of the project. In order to address complaints if or when they arise, a project-level grievance redress mechanism (GRM) has been developed in order to resolve problems in a timely and effective manner, as well as ensuring that the project will be implemented smoothly and successfully. Grievances and complaints of potentially affected people and organizations and their resolution will be documented.

316. The project GRM includes a procedure for receiving grievances, recording/ documenting key information, and evaluating and responding to the complainants in a reasonable period of time. Any concerns raised through the GRM will need to be addressed promptly and transparently. The GRM will be accessible to diverse members of the local communities, including more vulnerable groups such as women, youth and elderly. Multiple points of entry, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. Opportunities for confidentiality and privacy for complainants will be honored where requested.

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B. ADB’s GRM Requirements

317. The ADB SPS (2009) requires the implementing agency to establish a GRM to receive and facilitate resolution of affected person’s concerns and complaints about the project’s environmental performance during construction as well as operation phases of the project. The GRM should i) be scaled to the risks and adverse impacts of the project; ii) address affected people’s concerns and complaints promptly, using an understandable and transparent process; iii) be readily accessible to all sections of the community at no cost and without retribution; and iv) not impede access to the PRC’s judicial or administrative remedies.

C. Current Practice in the PRC

318. At the national level, a framework to address grievance has been established. The State Council issued Decree No. 431 Regulations on Letters and Visits in January 2005 and it codifies a complaint mechanism at all levels of government, and safeguards the complainants from any retaliation. In 2007 the Ministry of Environment issued Decree No. 34 Environmental Letters and Visits System, which provides specific guidelines to establish a system and address environmental complaints.

319. The current practice in PRC for APs negatively affected by project activities is to complain to the contractors and implementing agency directly or through their community organizations; others may complain directly to the district EPB or municipal EPB. The last option would be to take legal action and file complaints via the court. Among the agencies involved, the district EPBs take the lead role in dealing with environmental complaints from the public. The EPB then usually consults with the executing agency and implementing agency and/or environmental supervision engineers to have a full understanding of the situation. This kind of investigation is usually time-consuming so it may take a long time to address issues. The major weaknesses of the current system are: (i) the lack of a specialized unit to address grievances; and (ii) no specific timeframe for the redress of grievances.

D. Proposed Mechanism

320. In consultation with the executing agency and implementing agency, it was agreed that the implementing agency will establish a project public complaints unit (PPCU). The PPCU will be coordinated by at least two staff members. The contact persons for the different GRM entry points (residential community leaders, neighborhood organizations, local authorities, and district EPBs, and contractors, operators) will be defined prior to construction activity. Organizational charts of the GRM, including the contact persons of the entry points and the PPCU, will be disclosed at every construction site. Phone numbers, addresses, and email addresses of all access points and the PPCU will be disclosed to the public through the implementing agency’s website and/or on information boards at each construction site. Training will be provided to the members of the PPCU and the contact persons of the GRM entry points to ensure that responsibilities and procedures are clear. Each contractor will be required to assign an environment, health and safety (EHS) officer responsible for implementing requirement mitigation measures. The proposed project GRM is shown in Figure 7.1.

321. The PPCU will establish a GRM tracking and documentation system. The system will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) dedicated staff to update the trucking records routinely; (iii) systems for analyzing information so as to recognize grievance patterns, identify any systemic causes of grievances, promote transparency, publicize how complaints are being

124 handled, and periodically evaluate the overall functioning of the mechanism; (iv) processes for informing stakeholders about the status of complaints; and (v) procedures to retrieve data for reporting purposes, including the periodic reports to the PIU, PMO and ADB.

E. Types of Grievances Expected and Eligibility Assessment

322. Public grievances addressed by the GRM will most likely relate to environmental issues during the construction phase, as consultations with potentially affected people conducted during project preparation confirmed their basic support for the project and their suggestions have been incorporated. Generally, grievances during construction, generally include damage to public roads due to heavy vehicle operation and transportation of heavy equipment and materials; disturbance of traffic and increased traffic congestion; utility supply disruption, fugitive dust emissions; construction noise; soil erosion; inappropriate disposal of waste materials; damage to private houses; safety measures for the protection of the general public and construction workers; and water quality deterioration.

323. Managing construction-related grievances will primarily be the responsibility of the PPCU and implementing agency, who will work closely with contractors and the operators on satisfactory resolution. Each complaint will be assessed following a well-established procedure. Once a complaint is received and recorded, the PPCU will identify if complaints are eligible. Eligible complaints include those where (i) the complaint pertains to the project; and (ii) the issues arising in the complaint fall within the scope of environmental issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is clearly not project-related; (ii) the nature of the issue is outside the mandate of the environmental GRM (such as issues related to resettlement, allegations of fraud or corruption); and (iii) other procedures are more appropriate to address the issue. Complaints ineligible to the project or the environmental GRM will be recorded and passed onto relevant authorities. If an eligible complaint is rejected, the complainant will be informed of the decision and the reasons for rejection.

F. GRM Procedure and Timeframe

324. A fundamental goal of the GRM is to solve problems early and at the lowest level possible. Therefore, the implementing agency, through the person assigned to receive, record and document grievances, will attempt to address grievances at the first instance and in a pro- active manner to preclude elevating grievances to higher level. The procedure and timeframe for the grievance redress mechanism are described as follows (see Figure 7.1):

i) Step 1: If a concern arises, the affected person will try to resolve the issue of concern directly with the contractor/operator and/or the project manager. If the concern is resolved successfully, no further follow-up is required. But, the contractor/operator and/or the project manager shall record any complaint and actions taken to resolve the issues; ii) Step 2: If no solution is found or the complaint is received through entry points such as district EPA, it will be forwarded to the PPCU, which will properly assess the eligibility of the complaint, identify a solution, and give a clear reply to the complainant within 10 working days. The contractor (during construction) and the operator (during operation), shall implement the redress solution and convey the outcome to the PPCU within 10 working days; iii) Step 3: If no solution is identified by the PPCU or if the complainant is not satisfied with the suggested solution under Step 2, the PPCU will organize, within

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10 working days, a multi-stakeholder meeting where all relevant stakeholders, including the complainant, the implementing agency, contractor/operator, and district EPB will be invited. The meeting will aim to find in a solution acceptable to all parties, and identify responsibilities and an action plan. The contractor (during construction) and the operator (during operation) will implement the agreed redress solution and convey the outcome to the PPCU within seven working days; iv) Step 4: If the multi-stakeholder negotiation process is not successful, the PPCU, through the implementing agency, will inform the executing agency and district EPB accordingly. The executing agency with the consultation from the EPB and ADB will deliver alternative approaches to resolve the issues.

325. The PPCU as well as the district EPB shall accept complaints and grievances free of charge. Any cost incurred should be covered by the project. A summary of GRM activities will be reported by the implementing agency in the project progress reports annual environmental monitoring reports submitted to ADB. The GRM will be operational during the entire construction phase and during operation until project completion report is finalised.

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Figure 7.1: Proposed Project-level GRM

Grievances/Complaints Entry Points (oral or written complaint)

Step 1 Record District EPB, IA, Contractor and/or Issue complaint, Inform community leaders Operator Solved AP, report to ADB

Forward Forward if issue not solved

Step 2 Project Public Complaint Unit (PPCU)

Record complaint, assess eligibility

IA and contractor Solution not found identify solution and agree with AP

Conduct multi- Solution stakeholder meeting Step 3 found Solution to identify solution and found further action

Solution not found

Implement Solution Step 4 EA informs ADB and EPB to assist with problem resolution

During During Construction Operation

Contractor Operator

AP = affected person; EPB = environmental protection bureau; IA = implementation agency; EA = executing agency. Source: TA consultants.

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VIII. ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

326. An environmental management plan (EMP) has been prepared for the project during the PPTA which is presented in Appendix I of this IEE. The development of the EMP drew on the two domestic EITs prepared by a local EIA Institute, discussions with the PMO, the implementing agency and PIUs, Shapingba District and Banan District Government, and consultations with the Shapingba and Banan District EPBs. It will also be included as an appendix to the Project Administration Manual (PAM) for the project and included as part of the contract requirements.

327. The EMP defines appropriate mitigation measures for the anticipated environmental impacts, and defines the institutional responsibilities and mechanisms to monitor and ensure the compliance with PRC’s environmental laws, standards and regulations, and ADB SPS requirements. The EMP specifies (i) objectives; (ii) major environmental impacts and mitigation measures; (iii) implementing organization and responsibilities; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (vi) a feedback and adjustment mechanism; and (vii) the project level GRM. The EMP will be reviewed and updated after detailed designs are completed, and will further be revised during implementation if determined that mitigation measures need to be amended or new measures needed. If there are significant updates, the revised IEE/EMP will be disclosed on ADB’s project website.

B. Objectives

328. The objectives of the EMP are to ensure implementation of: (i) identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; and (ii) monitoring and reporting against the performance indicators, while ensuring that the project complies with the PRC’s environmental laws, standards and regulations and to ADB Safeguard Policy Statement (2009). Organizational responsibilities and budgets are clearly identified for execution, monitoring and reporting.

C. Organizational Structure for Environmental Management

329. The executing agency for the project is Chongqing Municipal Government (CMG) and the implementing agency is Chongqing Transportation Holding Group Company (CQTG).

330. Chongqing Development and Reform Commission (CQDRC) represents the executing agency to manage and coordinate the project implementation. Chongqing project management office (CPMO) has been established under CQDRC to provide overall guidance, supervision, coordination, and management of project preparation and implementation.

331. CQTG, as the implementing agency of the project, will be responsible to coordinate and implement all project outputs. Established in 2004, CQTG is a municipal government owned enterprise with numbers of subsidiary companies including Chongqing Highway Transport Company, Chongqing Automobile Transport Ltd, Chongqing Long Distance Bus Co Ltd, Chongqing Transportation Co Ltd, Chongqing Transport and Logistic Co Ltd, Chongqing Ship Company, and Chongqing Passenger Ship Company. CQTG has been designated by CMG in charge of Chongqing logistics and transport development. An implementing agency project management office has been established in CQTG with a company deputy general manager assigned as the director with the overall responsibility for the project implementation. The PMO

128 of the IA is established in Logistics Division with the division chief assigned as the deputy director in charge of daily operation.

332. Four PIUs have been established within the subsidiary companies of the CQTG for implementing the four project outputs. PIU1 is established in Chongqing Transportation Logistics Company Ltd with the responsibility for implementing Chongqing Transportation Logistics Park at Tuanjiecun (Output 1). PIU2 is established in Chongqing Highway Transport Company with the responsibility of implementing the construction of Nanpeng Logistics Park (Output 2). PIU3 is established in Chongqing Ship Company for the implementation of inland waterway transport output (Output 3). PIU4 is established in the newly formed Chongqing Intelligent Logistics Development Company Ltd for the implementation of the cloud based intelligent logistics information system (Output 4). Since PIU4 only involves in software development and implementation, it does not have any EMP implementation responsibilities. The other three PIUs will have responsibilities to implement relevant provisions as specified in this EMP.

333. Construction contractors will be responsible for implementing the mitigation measures during construction under the supervision of the PIUs and construction supervision companies. In their bids, contractors will be required to respond to the environmental specifications in the bidding documents (see Appendix I, Section K of this EMP for details). Each contractor will be required to develop site specific EMPs and will assign a person responsible for environment, health and safety. After project completion, environmental management responsibilities will be handed over to the operation and maintenance units.

D. Organizations and Their Responsibilities for EMP Implementation

334. In the design stage the design institutes should incorporate mitigation measures into the detailed designs. The EMP will be reviewed and updated as necessary when the detailed designs are completed. Applicable EMP provisions will be incorporated into bidding documents for civil works. To ensure that bidders will respond to the EMP requirements, the CPMO, the implementing agency and PIUs will ensure EMP specific clauses as specified in Section K of the EMP be incorporated into the bidding documents. The EMP implementation arrangements and responsibilities of each organization are summarized in Table EMP-1 of Appendix I.

E. Potential Impacts and Mitigation Measures

335. Tables EMP-2 to EMP-4 of Appendix I list the anticipated impacts of Chongqing Transportation Logistics Park (Output 1), Nanpeng logistics park (Output 2) and the inland waterway ro-ro transport (Output 3) during project preparation, implementation and operation as identified by the domestic EITs and the IEE, as well as corresponding mitigation measures defined to minimize those impacts. The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, which will mainly be implemented by the design institutes (during detailed design) and contractors (during construction), under the supervision of CSCs, CPMO and implementing agency, with technical support from the LIEC. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved or adjusted.

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F. Environmental Monitoring, Inspection and Reporting

336. Environmental monitoring. The project monitoring program focuses on the environment within the project‘s areas of influence in Outputs 1, 2 and 3. A detailed environmental monitoring program is presented in Table EMP-5 to EMP-7, which covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards to be followed are the national environmental quality standards of air, water and noise, and the pollutant discharge standards. The environmental monitoring programs for Outputs 1, 2 and 3 are shown in tables EMP-5, EMP-6 and EMP-7 of Appendix I.

G. Training, Capacity Building, Awareness Raising

337. To ensure effective implementation of the EMP, the capacity of the CPMO, implementing agency, OPFs, CSCs and contractors must be strengthened, and all parties involved in implementing mitigation measures and monitoring of environmental performance must have an understanding of the goals, methods, and the best practices of project environmental management. The local EPBs and the LIEC will offer training specific to their roles for all the project components. The main training emphasis will be to ensure that the contractors, CSCs, implementing agency and OPFs are well versed in environmentally sound practices and are able to undertake all construction and operation with the appropriate environmental safeguards.

338. Training Needs Assessments will be conducted by the LIEC to tailor the training for maximum impact. The trainer will include in their program a before/after assessment to evaluate the success of the training. An evaluation questionnaire will be used to assess the effectiveness of the training and the training program will be adjusted based on feedbacks. Training will be provided throughout the implementation of the project and the training program is summarized in Table EMP-9 of Appendix I.

H. Cost Estimates

339. The total cost for EMP implementation comprises the following items: (i) mitigation measures, (ii) environmental impact monitoring by EMS or a certified entity, (iii) training, (iv) public consultation, and (vi) consulting services of LIEC. The total estimated cost of CNY 5.18 million or $823,000 is summarized in Table EMP-11 of Appendix I.

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IX. CONCLUSION AND RECOMMENDATIONS

A. Expected Project Benefits

340. The proposed project would directly benefit 2.92 million people currently living in the three project districts and indirectly benefit 7.22 million residents in the inner city of Chongqing, 8,412 companies undertaking logistics business and 386,800 employees working in the city of Chongqing.

341. General benefit of the project includes (i) improve logistics facilities, (ii) increase logistics operation and management efficiency, (iii) ensure commodity supply and daily life of local residents, (iv) reduce costs of freight transport and prices of consumer goods, (v) improve transport conditions (safety and congestion) in urban areas, (vi) reduce pollution and vehicle emission in urban area, and (vii) increase employment opportunity. The project will create skilled and unskilled jobs in logistic industry with additional opportunities during project facility construction.

342. The project would reduce freight trips in the inner city of Chongqing, costs of freight transportation and prices of consumer goods, air pollution, energy consumption and emission, traffic accidents and disparity between urban and rural areas. Once fully operational, the project is expected to result in a net reduction of 18,000 tons of CO2 emissions per annum from reduced truck trips and modal shift from truck to inland waterway.

343. Output 1 and Output 2 will adopt a number of innovative eco-logistic features of demonstration value for the industry. LEED standard will be adopted for the information exchange center of Output 1 which will be one of the first buildings to be constructed at the logistics park. In addition, the administrative buildings for both Outputs 1 and 2 will be designed and constructed according the Chongqing Green Building Standard, which is the PRC standard adopted in Chongqing.

B. Adverse Impacts and Mitigation Measures

344. Climate change. Chongqing would be subject to climate change impacts including temperature and precipitation increase, with increased probability of higher frequencies and intensities of severe storms and floods. An initial climate risk and vulnerability analysis of the project sites has been carried out and a number of climate adaptation measures have been recommended, including increasing capacity of drainage systems and improving site infiltration and flood capacity through the inclusion of permeable paving and integration of detention ponds for capture and reuse of stormwater.

345. Land acquisition. This project would acquire a total of 675.13 mu of collective land that includes 433.15 of cultivable land, 40.26 mu of home stead land, 18.25 mu of garden land, 13.85 mu of forestry land and 169.62 mu of waste land and construction land. The house demolition will affected a total of 25,635 m2 of houses. A due diligence has been conducted by resettlement specialists and an appropriate compensation strategy agreed.

346. During construction, potential impacts mainly relate to earthwork, soil erosion, air quality, noise, water quality, ecology, solid waste and occupational health and safety impacts. Potential air quality impact may occur due to fugitive dust generated on the construction site from stockpiles of uncovered earth materials and vehicles travelling in and out the sites. The use of powered mechanical equipment during construction activities will generate noise and vibration.

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Construction activities will generate process wastewater and construction workers will produce wastewater.

347. Earthworks and construction activities will remove vegetation and ecological habitats. Construction works will produce C&D wastes. Workers will face occupational health and safety issues working on construction sites. Good housekeeping and effective mitigation measures will be implemented to reduce these impacts to acceptable levels. Biological resources are dominated by common species. There is no critical or natural habitat within the project area of influence. There is no protected floral and faunal species in the project area of influence.

348. Operation of the logistics parks and the inland waterway port will generate traffic noise from the trucks and trailer going in and out the facilities. Mitigation measures consist of setting low speed limits and limiting use of horns.

349. Stormwater runoff could pollute surface water. There will be two stormwater retention ponds, roof rainwater collection systems, permeable paving and landscaping that have ‘sponge’ abilities in order to maximize flood capacity, retention and reuse for irrigation of landscaping and washing trucks.

350. Based on information gathered and assessments performed by the domestic environmental institute, it is concluded that environmental impacts during the construction and operational stages of the project would be acceptable and in compliance with PRC regulations and standards. The EMP defines mitigation measures and monitoring requirements for the design, construction, and operational stages of the project. ADB’s SPS (2009) requirements can be met if the proposed mitigation measures specified in the EMP are implemented effectively and monitored diligently.

C. Risks and Assurances

351. The project has no unusual technical risks and conventional engineering designs with proven reliability and performance will be adopted for all the outputs. The logistics park designs have incorporated innovative eco-logistic approaches and advanced technologies which will contribute to reduced environmental impacts which could provide a demonstration and showcase for other logistics facilities being planned in PRC. The main risks are the failure of the detailed design to take account of the recommended approaches and the CPMO, the implementing agency and PIUs to monitor environmental impacts and implement the EMP during construction and operational stages. This risk will be mitigated by (i) allocating adequate budget in the loan for specialist consulting services to support eco-logistics, environmental management and monitoring; (ii) appointing qualified LIC and LIEC; (iii) ensuring Contractors develop SEMPs prior to commencing work which need approval and sign off by LIEC; (iv) providing training in environmental management under the project; (v) following appropriate project implementation monitoring and mitigation arrangements, (vi) ADB conducting regular project reviews; and (vii) project assurances covenanted in the loan and project agreement.

352. General Environmental Assurances. The executing agency will ensure and cause the implementing agency to ensure that the preparation, design, construction, implementation, operation, maintenance, monitoring and decommissioning of the project and project facilities comply with (i) all applicable environment, health, and safety laws and regulations of the Government; (ii) the Environmental Safeguards (i.e. principles and requirements set forth in ADB's Safeguard Policy Statement (2009); and (iii) all measures and requirements set forth in the domestic EITs, the IEE and environmental management plan (EMP) for the project; and any

132 corrective or preventive actions (a) set forth in a safeguards monitoring report, or (b) which are subsequently agreed between ADB and the Government. The executing agency will cause the implementing agency to prepare, at the outset of project implementation, detailed EMP implementation programs to be implemented by the contractors during construction and operation phases, and to incorporate such mitigation and monitoring measures into the design of the project, relevant bidding documents and construction contracts. Throughout project implementation, the executing agency and the implementing agency will review any changes to the project design that may potentially cause negative environmental impacts, and in consultation with ADB, update the EMP by revising mitigation measures as necessary to ensure full environmental compliance.

353. CMG, CPMO and the implementing agency will ensure that sufficient resources and full time personnel are provided for monitoring EMP implementation and making appropriate use of external independent environmental monitoring entities. CMG will ensure that CPMO will prepare and submit to ADB annual environmental monitoring reports in a format acceptable to ADB.

354. Specific Environmental Assurances. CMG will ensure that CPMO establishes a GRM relating to safeguards in line with the EMP and RP and establishes a task force functioning effectively to: (a) review and document eligible complaints of project stakeholders; (b) proactively address grievances; (c) agree with the complainants the chosen mechanism for redress; and (d) prepare periodic reports to summarize the number of complaints received and resolved, and final outcomes of the grievances and chosen actions and make these reports available to ADB upon request. Eligible complaints include those related to the project, any of the service providers, any person responsible for carrying out the project, complaints on misuse of funds and other irregularities and grievances due to any safeguard issues, including resettlement, environment, and gender.

355. CMG will ensure that all excavated spoil and construction and demolition waste generated during construction will be temporarily stored or permanently disposed of at designated locations only.

356. CMG and Chongqing Transportation Logistics Company Ltd will ensure that ISO14001 environment and ISO9001 quality certification is achieved within one year of completion of Output 1. CMG and Chongqing Highway Transport Company will ensure that ISO14001 environment and ISO9011 quality certification is achieved within one year of completion of Output 2.

357. For Output 1, CMG and Chongqing Transportation Logistics Company Ltd will ensure that Leadership in Energy & Environmental Design (LEED) certification is achieved for the information exchange center and Chongqing Green Building Standard certification is achieved for the administration building. For Output 2, CMG and Chongqing Highway Transport Company will ensure that Chongqing Green Building Standard certification is achieved for the administration building. For both outputs, eco-logistics features of demonstration value will be integrated in the design of the parks, in particular the proposals to increase stormwater capture and retention and to reduce discharge to stormwater network.

358. CMG to ensure that detailed design of drainage for Output 1 and Output 2 takes account of recommended climate change adaptation measures, in particular the need to adjust to a higher design standard. A conservative 6% increment of the sewage and drainage capacity is recommended, and a 10% increment for the critical components is recommended, given the

133 difficulty of repair and replacement of urban drainage system in the future.

D. Overall Conclusion

359. The domestic EITs and this IEE conclude that all identified environmental impacts can be mitigated to acceptable levels if the measures defined in the EMP and assurances are carefully implemented and monitored. The project is feasible from an environmental safeguards point of view. The improved efficiency of logistics operations and the eco-logistics measures proposed through the project will have environmental benefits.

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APPENDIX I – ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

1. This Environmental Management Plan (EMP) has been prepared for the proposed ADB Loan Chongqing Integrated Logistics Demonstration Project based on the domestic environmental impact tables (EITs), feasibility study reports (FSRs), soil erosion control plans of two logistics bases where the two logistics parks located, as well as the master plans of Banan and Shapingba districts, and other project documents. The EMP covers all project implementation phases, including design and pre-construction, construction, and operation of all project components.

B. Objectives

2. The objectives of the EMP are to ensure implementation of: (i) identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; and (ii) monitoring and reporting against the performance indicators, while ensuring that the project complies with the PRC’s environmental laws, standards and regulations and to ADB Safeguard Policy Statement (2009). Organizational responsibilities and budgets are clearly identified for execution, monitoring and reporting.

3. The EMP defines appropriate mitigation measures for the anticipated environmental impacts, and defines the institutional responsibilities and mechanisms to monitor and ensure compliance. The EMP specifies (i) objectives; (ii) major environmental impacts and mitigation measures; (iii) implementing organization and responsibilities; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (vi) future public consultation; (vii) a feedback and adjustment mechanism; and (viii) the project level GRM. The EMP will be reviewed and updated after detailed designs are completed, and will further be revised during implementation if determined that mitigation measures need to be amended or new measures needed. The updated EMP will be disclosed on ADB’s project website.

C. Implementation Arrangements

4. The executing agency for the project is Chongqing Municipal Government (CMG) and the implementing agency is Chongqing Transportation Holding Group Company (CQTG).

5. Chongqing Development and Reform Commission (CQDRC) represents the EA to manage and coordinate the project implementation. Chongqing project management office (CPMO) has been established under CQDRC to provide overall guidance, supervision, coordination, and management of project preparation and implementation.

6. CQTG, as the implementing agency of the project, will be responsible to coordinate and implement all project components. Established in 2004, CQTG is a municipal government owned enterprise with numbers of subsidiary companies including Chongqing Highway Transport Company, Chongqing Automobile Transport Ltd, Chongqing Long Distance Bus Co Ltd, Chongqing Transportation Co Ltd, Chongqing Transport and Logistic Co Ltd, Chongqing Ship Company, and Chongqing Passenger Ship Company. CQTG has been designated by CMG in charge of Chongqing logistics and transport development. An implementing agency project management office has been established in CQTG with a company deputy general manager assigned as the director with the overall responsibility for the project implementation. The PMO of the implementing agency is established in Logistics Division with the division chief

135 assigned as the deputy director in charge of daily operation.

7. Four project implementing units (PIUs) have been established within the subsidiary companies of the CQTG for implementing the four project outputs. PIU1 is established in Chongqing Transportation Logistics Company Ltd with the responsibility for implementing construction of Chongqing Transportation Logistics Park at Tuanjiecun (Output 1). PIU2 is established in Chongqing Highway Transport Company with the responsibility of implementing the construction of Nanpeng Logistics Park (Output 2). PIU3 is established in Chongqing Ship Company for the implementation of the inland waterway ro-ro transport output (Output 3). PIU4 is established in the newly formed Chongqing Intelligent Logistics Development Company Ltd for the implementation of the cloud based intelligent logistics information system (Output 4). Since PIU4 only involves software development and implementation, it does not have any EMP implementation responsibilities. The other three PIUs will have responsibilities to implement relevant provisions as specified in this EMP.

8. Construction contractors will be responsible for implementing the mitigation measures during construction under the supervision of the PIUs and construction supervision companies. In their bids, contractors will be required to respond to the environmental specifications in the bidding documents (see Section K of this EMP for details). Each contractor will be required to develop site specific EMPs and will assign a person responsible for environment, health and safety. After project completion, environmental management responsibilities will be handed over to the operation and maintenance units.

D. Organizations and Their Responsibilities for EMP Implementation

9. In the design stage the design institutes should incorporate mitigation measures into the detailed designs. The EMP will be reviewed and updated as necessary when the detailed designs are completed. Applicable EMP provisions will be incorporated into bidding documents for civil works. To ensure that bidders will respond to the EMP requirements, the CPMO, the implementing agency and PIUs will ensure EMP specific clauses as specified in Section K of this EMP be incorporated into the bidding documents. The EMP implementation arrangements and responsibilities of each organization are summarized in Table EMP-1.

Table EMP-1: Summary Institutional Responsibilities for EMP Implementation

Agency Environmental Management Roles and Responsibilities EA - CMG Overall policy and direction control. Responsible for project coordination with two project district governments, liaison with ADB, financial management and administration, providing guidance to CPMO. Chongqing Project • Primarily responsible for implementation of project components, Management Office including finance and administration, technical and procurement (CPMO) matters, monitoring and evaluation, and safeguard compliance; • Assign one environment specialist as EMP officer/coordinator who will (i) supervise contractors and their compliance with the EMP; (ii) conduct regular site inspections; (iii) act as local entry point for the project GRM; (iv) review environmental quality monitoring results provided by the IA; • Communicate and coordinate with ADB for project management and implementation; submit the project implementation progress reports and safeguard compliance monitoring reports to ADB; • Submit bidding documents, bid evaluation reports and other necessary documentation to ADB for review and approval;

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Agency Environmental Management Roles and Responsibilities • Engaging loan implementation consultants (LIC), including environmental specialists to assist in supervision, tracking and reporting on EMP implementation for all packages; and • Engage local EMS or a certified entity for environmental impact monitoring; • Consolidate data from environmental monitoring reports into annual environmental monitoring reports and submit them to ADB for review and disclosure. ADB Monitor and supervise the overall environmental performance of the project; Review the annual environment performance reports and disclose the reports on ADB website upon receipt (within 14 calendar days) in line with ADB Public Communications Policy (2011); conduct due diligence of environment issues and advise on corrective actions during the project review missions. Implementation Agency Responsible for day to day management work during the project preparation (IA) and implementation periods; assign an environmental specialist to supervise and monitor the implementation of EMP; and liaison between CPMO and PIUs. PIUs • Responsible for all day-to-day work during the project implementation: • Communicate and coordinate with IA for project management and implementation; • Establish environment management unit (EMU) and appoint an environment specialist as EMP coordinator; • Incorporate EMP clauses in bidding documents for civil works; • Establishment of a dedicated Project Complaints Coordinating Unit (PCCU); • Supervision and monitoring of the EMP implementation and reporting to the IA and CPMO; • Participation in capacity building and training programs; • Submit annual project financial statements to the IA and CPMO; • Engage design institutes to complete preliminary and detailed engineering designs; and • Engage construction supervision companies (CSC). Contractor, Construction Construction contractors will develop site-specific EMPs on the basis of the supervision Companies project EMP and will be responsible for implementing mitigation measures (CSCs) during construction under the supervision of the CSCs. CSCs will be selected through the PRC bidding procedure by the IA/PIUs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports to be submitted to the IA and CPMO. Loan Implementation Provide technical assistance to the CPMO/IA/PIU for implementing the EMP; Environmental Provide training to the staff of the CPMO/IA/PIU, contractor and CSCs; consultant (LIEC) Assist the CPMO/IA in preparing environmental monitoring reports. Review updated EMP, confirm that mitigation measures have been included in engineering detailed design. Review bidding documents to ensure that the EMP clauses are incorporated. Advise on mitigation measures, provide technical support, and conduct environmental training. Conduct annual EMP compliance review, support CPMO in preparing project progress reports and

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Agency Environmental Management Roles and Responsibilities annual environmental monitoring until a PCR is issued. Facility Operators Ensure proper operation of component facilities according to design standards; implement mitigation measures if needed. District EMS or certified Conduct environmental impact monitoring according to the EMP monitoring environmental entity plan and submit monitoring results to the CPMO. District EPB Inspect the facilities during construction and operation to ensure compliance; Enforce applicable environmental laws and regulations. Source: TA consultants.

E. Potential Impacts and Mitigation Measures

10. Tables EMP-2 to EMP-5 list the anticipated impacts of Chongqing Transportation Logistics Park (Output 1), Nanpeng Logistics Park (Output 2) and the inland waterway ro-ro transport (Output 3) during project preparation, implementation and operation as identified by the domestic EITs and the IEE, as well as corresponding mitigation measures defined to minimize those impacts. The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, which will mainly be implemented by the design institutes (during detailed design) and contractors (during construction), under the supervision of CSCs, CPMO and IA, with technical support from the LIEC. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved or adjusted.

Table EMP-2: Potential Impacts and Mitigation Measures during Preconstruction and Construction Phases

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise A. Design & Preconstruction Phases Detailed Institutional Establish EMUs in CPMO/IA, including at least one CPMO, EA, ADB - - Included in design strengthening environment specialist; PIUs the design stage for implementing Appoint environmental coordinators for EMP contracts EMP and coordination within CPMO and IA; supervision Engage LIEC under the LIC; and Provide training to all environmental staff for EMP implementation and supervision Updating EMP Update mitigation and monitoring measures defined CPMO, EPB, - - CPMO loan in this EMP based on final detailed design, submit to IA, LIEC ADB implementat ADB for review; and in case of major change of ion on TA project location (or additional physical component) that may cause significant environmental impacts or involve additional APs, IA should engage an environmental institute to update the EITs including public consultation. The revised EIT should be submitted to EPB and ADB for approval and disclosure. To determine whether the change is minor or major, CPMO should consult with ADB. Soil resources Loss of land and Minimize land take for development. Design CPMO, IA - - Included in topsoil, Incorporate landscape features in design; institute the design increasing risk of Retain/incorporate landscape features of interest in contract erosion design. Optimize balance between cut and fill and avoid deep cuts and high embankments to minimize earthworks.

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Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise Maximize reuse of spoil and other material within the construction or adjacent construction works. Agree on spoil disposal sites, management and rehabilitation plan with local EPB. Specify removal and storage of topsoil for restoration works prior to main earthworks. Specify vegetation that serves specific bioengineering functions and is of local provenance. Design appropriate drainage systems for slopes to reduce soil erosion. Materials Efficient usage • Adopt LEED for Information Exchange Design CPMO, IA - - Included in of resources Center Building and Chongqing/PRC Green Building institute the design for Administration Building for Outputs 1; and contract • Adopt Chongqing/PRC Green Building for Administration Building for Outputs 2; • Use local materials about 30%. • Specify energy efficient lighting systems. • Specify materials that have recycled content or are from sustainable sources. • Specify the use of low-E vacuum glass for windows. • Designate areas for packaging materials collection and recycling. Climate change Consider • Consider potential impacts from extreme Design CPMO, IA Included in adaption to weather events due to climate change in designing institute the design extreme weather subgrade, pavement, drainage system, and the contract events structures of the logistics facilities; • Increase the stormwater drainage capacity by 10%; and • Adopt appropriate protective measures such as green roofs, vegetation cover, permeable paving, stormwater retention ponds. • Specify appropriate insulation materials and mechanical systems to take account of future possible increase in cooling requirements. Emission Minimize air • Specify local materials from licensed Design CPMO, IA Included in emissions providers that minimize transport distance; and institute the design • Locations for borrow areas and concrete contract batching stations must be at least 300 m downwind of the nearest household. Water bodies Minimize risk of • Technical design must ensure that Design CPMO Included in polluted run-off drainage design and discharge locations minimize institute the design into water risk of polluting nearby water bodies; contract bodies • Design the on-site wastewater treatment facilities at two logistics parks with appropriate technology and adequate capacities; and • Ensure water is treated to the relevant standard prior to discharge to the municipal sewer system. Construction Implementation • Engage a project implementation CPMO EA, ADB ADB Loan Preparation consulting firm consulting firm (including domestic and international environmental specialists) following ADB’s guidelines. Institutional • Appoint one qualified environment CPMO EA Included in strengthening specialist within the CPMO; engage LIEC as an detailed external monitor within LIC services by the CPMO to design

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Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise monitor and verify the implementation of the EMP. contract Environmental • Engage EMS or a certified environmental PIUs, CPMO, IA monitoring plan monitoring entity prior to construction; EMS • Prepare an environmental monitoring plan in accordance with EMP. Update EMP • Mitigation measures defined in the EMP PIUs, IA CPMO, Matching will be updated based on final technical designs. LIEC fund of CQTGP Land-acquisition • The Resettlement Plan is based on final PIUs, Bureau of Included in and resettlement Detailed Measurement Survey. land civil land • Establish a resettlement office that acquisitio affairs, acquisition includes local officials to manage land acquisition and n and bureau of and resettlement; resettlem land resettleme • Guide community consulting procedure; ent office managem nt budget • Ensure all land acquisition issues are ent, resolved before construction. CPMO Contract • Environmental clauses as specified in the DIs, IA, CPMO, Included in documents Section K of this EMP will be incorporated in the PIUs LIEC, detailed Technical Specifications in the bidding document and tender design contracts. company, contract ADB Site-specific • Contractors shall prepare site-specific Contracto IA, LIEC Included in EMP EMPs which will include method statement for each rs the key construction activity and associated mitigation constructio measures. n contract • These site-specific EMPs shall be submitted to the CPMO and the LIEC for review and approval. • All contractors and subcontractors shall comply with approved EMPs. EMP training • The LIC services (mainly but not LIEC, EPB, Included in exclusively through the LIEC) will provide training on CPMO ADB the project preparation of site-specific EMPs, implementation and implement supervision of environmental mitigation and ation monitoring measures to relevant staff of contractors, consultant CSCs, CPMO, the IA and PIUs. budget • LIEC will provide on-site training of EMP preparation, mitigation measures and implementation and supervision of monitoring measures to related personnel of CPMO, IA, and PIUs. Establish • Establish a PPCU and provide training for IA CPMO, Included in operational PPCU staff and GRM access points; LIEC, PIUs GRM • Disclose PPCU’s phone number, fax, ADB budget address, and email to the public on on information boards at each construction site; • Establish database for feedbacks. B. Construction Phase Topography and Earthwork, soil • Fully understand all soil erosion Contracto PIUs, 90 48 Included in Soils erosion, soil requirements and have developed appropriate r, LIEC, the contamination method statements and management proposals; CSCs CPMO, constructio • Construct intercepting ditches and berms local n contract to direct rainwater runoff away from exposed surface, EPBs, if necessary; water • Install drainage ditches and sedimentation resource

140

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise tanks in temporary construction areas to prevent soil bureau erosion and to manage run-off; • Strip and store topsoil in a stockpile for reuse in restoration; • Use approved spoil disposal and borrow pit locations, as defined in the construction tender documents; only use materials from borrow pits that have been approved. • Limit construction and material handling during periods of rains and high winds; • Contractors should plan their work in borrow areas and spoil disposal sites so that the open area is minimized and rehabilitation can be completed progressively; • Restoration of spoil disposal sites and borrow areas will follow the completion of works in full compliance with all applicable standards and specifications, and will be required before final acceptance and payment under the terms of contracts; • Conduct project completion audit to confirm that spoil disposal site and borrow area rehabilitation meets required standard, contractor liable in case of non-compliance; • Stabilize all cut slopes, embankments, and other erosion-prone working areas while works are going on; • Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas; • Establish emergency preparedness and response plan including spill cleanup equipment at each construction site and training in emergency spill response procedures; • If there is a spill take immediate action to prevent entering drains, watercourses, unmade ground or porous surfaces. Do not hose the spillage down or use any detergents. Use oil absorbents and dispose of used absorbents at a waste management facility; • Report any spill events and actions taken in environmental monitoring logs and report to the environmental consultant; • Stabilize all earthwork disturbance areas within 30 days after earthworks have ceased at the sites; and • Pay close attention to drainage provision and establish vegetation cover on backfilled areas to prevent soil erosion. Ambient Air Fugitive dust • Provide masks for operating personnel; Contracto IA, PIUs, 19 14 Included in generated by • Equip material stockpiles and concrete rs, LIEC, the construction mixing equipment with dust shrouds, maintain CSCs CPMO constructio activities, shrouds regularly; n contract gaseous air • Mount protective canvasses on all trucks pollution (SO2, which transport material that could generate dust; CO, NOx) from • Keep construction vehicles and machinery construction in good working order, regularly service and turn off

141

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise machinery engines when not in use; • Assign haulage routes and schedules to avoid transport occurring in the central areas, traffic intensive areas, residential areas, local schools or hospitals. Vehicle speed on unpaved haul roads will be restricted to 10 km/hr. or less; • Spray water on construction sites and earth/material handling routes where fugitive dust is being generated; • Cover materials during truck transport, in particular, the fine material, to avoid spillage or dust generation; • Vehicles with an open load-carrying case, which transport potentially dust producing materials, shall have proper fitting sides and tail boards. Dust- prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with a strong tarpaulin; • Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads; • Store construction materials in appropriate places and cover them to minimize fugitive dust emissions; • In periods of high wind, dust-generating operations shall not be permitted within 200 m of residential areas. Special precautions need to be taken in the vicinity of sensitive areas such as schools, kindergartens and hospitals; • Minimize storage time of construction and demolition wastes on site by regularly removing them off site; • Unauthorized burning of construction and demolition waste material and refuse shall be subject to penalties for the contractor, and withholding of payment; • Ensure emissions from vehicle and construction machineries are in compliance with the PRC standards of GB18352-2005, GB17691- 2005,GB11340-2005, GB2847-2005, and GB18285- 2005; • Use high-horsepower equipment with tail gas purifiers; • Carry out atmospheric monitoring during the construction period; • Keep the public informed of construction schedules, dusty and noisy activities, and access to the grievance redress mechanism. Post the complaint hotline number at all work site and construction camp entrances. Noise Noise generated • During daytime construction, the contractor Contracto IA, PIUs, 6 5 Included in from will ensure that: (a) noise levels from equipment and rs, CSCs LIEC, constructio construction machinery conform to the PRC standard for Noise CPMO n contract activities Standards for Construction Sites (GB12523-2011) and the WBG EHS Standards; (b) only low noise machinery or the equipment with sound insulation is

142

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise employed; and (c) concrete mixers and similar activities will be located at least 300 m away from the nearest sensitive receptor.; • Night time (between 22:00 and 06:00 hours) construction shall be avoided as much as possible, especially for Chongqing Transportation Logistics Park if resettlement for some residents have not be completed. If night time construction work is needed, the contractors should prevent using high sound power level equipment and inform nearby residents of such night time activities well beforehand. • Apply noise reduction devices or methods where piling equipment is operating, such as construction within 300 m of sensitive sites; • Locate sites for rock crushing, concrete- mixing, and similar activities at least 1000 m away from sensitive areas; • To reduce noise at night, restrict the operation of machinery generating high levels of noise, such as piling, and movement of heavy vehicles along urban and village roads between 8 pm to 6 am; • Place temporary hoardings or noise barriers around noise sources during construction, if necessary; • Monitor noise at sensitive areas and consult potentially affected people at regular intervals (refer to the monitoring plan in the EMP). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation; • Provide the construction workers with suitable hearing protection (ear muffs) according to the worker health protection law of the PRC; • Control the speed of bulldozer, excavator, crusher and other transport vehicles travelling on site, adopt noise reduction measures on equipment; ensure regular equipment repair and maintenance to keep them in good working condition; • Limit the speed of vehicles travelling on construction sites and haul roads (less than 10 km/h), forbid the use of horns unless absolutely necessary, minimize the use of whistles. • Maintain continual communication with residents and communities within the project influence area and ensure GRM is accessible and effective. Wastewater Wastewater • Portable toilets and small package Contracto IA, PIUs, 18 14 Included in generated wastewater treatment plants and or septic tanks will rs, CSCs, LIEC, constructio during be provided on construction sites for the workers. EMS CPMO n contract construction When the public sewer line is completed within the logistics base, interim storage tanks and pipelines will be installed to convey wastewater to public sewers. Construction sites and construction camps shall also have drainage provisions to collect and treat site

143

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise runoff; • Treated in temporary biochemical tank and reused for construction water spray. Equip all areas where construction equipment is being washed with water collection basins and sediment traps; • Place storage facilities for fuels, oil, and other hazardous materials within secured areas on impermeable surfaces, and provide bunds and cleanup installations; • Construction machinery will be repaired and washed at designated locations. • Material stockpiles will be protected against wind and runoff waters which might transport them to surface waters. • Contractors’ fuel suppliers must be properly licensed and follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods); • Ensure that water quality (for pollutants such as SS, CODcr, and oil) is monitored in accordance with the EMP monitoring program; • Any spills are to be cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated according to PRC and Chongqing requirements. Records must be handed over without delay to the CPMO and local EPB. An emergency spill contingency plan shall be prepared by the contractors as part of the SEMP and personnel will be trained in its use. Solid Waste Solid waste • Manage materials on site effectively Contracto IA, PIUs, 30 20 Included in generated by through good house-keeping and work planning to rs, LIEC, constructio construction minimize waste generation; CSCs CPMO n contract activities and • Strip and store topsoil in a stockpile for from workers’ reuse in restoration; camps • Use approved spoil disposal sites and borrow areas and contractors will only use material from borrow pits that have been approved; • Spoil disposal sites and borrow areas shall be within the property boundaries of the two logistics parks and away from water body and residential areas; • Contractors should plan their work in borrow areas and spoil disposal sites so that the open area is minimized and rehabilitation can be completed progressively • Maximize the re-use of earth cut materials and C&D wastes on the project; • Restoration of spoil disposal sites and borrow areas will follow the completion of works in full compliance with all applicable PRC standards and specifications, and will be required before final acceptance and payment under the terms of contracts; • If spoil occurs, properly remove and dispose of any significant residual materials, wastes

144

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise and contaminated soils that remain on the ground during and after construction to the spoil sites. Any planned paving or vegetation of the area shall be done as soon as the materials are removed to stabilize the soil; • Burning of waste is strictly prohibited; and • Conduct project completion audit to confirm that spoil disposal site and borrow area rehabilitation meets required standard and contractor is liable in case of noncompliance. C&D waste • Temporary storage and permanent • management disposal of C&D wastes at designated sites only. These sites shall be at least 300 m from any water body. • Attempts shall be made to maximize the re-use of earth cut materials and C&D wastes on the project. • Ensure C&D waste is enclosed during transport. • Establish enclosed waste collection points on site, with separation of domestic, construction and recyclable waste streams. • Set up centralized domestic waste collection point and transport offsite for disposal and or recycling at a registered waste handling facility. Physical Destruction of • Contractor must comply with PRC's Contracto IA, - - None Cultural buried cultural Cultural Relics Protection Law and Cultural Relics rs Bureau of Resources relics Protection Law Implementation Regulations if such Cultural relics are discovered during construction; Relics, • Stop work immediately and notify the local LIEC cultural authority, adopt measures to protect the site. Socio-economic Community • Prepare a traffic control plan, to be Contracto PIUs, 20 Included in resources health and approved by traffic management bureau before rs, LIEC constructio safety construction. The plan shall include provisions for CSCs n contract diverting or scheduling construction traffic to avoid morning and afternoon rush hours; • Underground utilities will be identified prior to any earth moving work. Construction activities will be planned so as to minimize disturbances to these utilities if they are located near the construction sites; • Regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed; • Plan construction activities to minimize disturbances to utility services, if any; • Inform residents and businesses in advance through media of the construction activities, given the dates and duration of expected disruption; • Place clear signs at construction sites in view of the public, warning people against potential dangers such as moving vehicles, hazardous materials, excavations, and raising awareness on safety issues; • Heavy machinery shall not be used at night; and

145

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise • Secure construction sites and equipment, to prevent access by the public through appropriate fencing or security personnel. Grievance Handling and • Establish a GRM, appoint a GRM IA, PIUs CPMO - - CQTG and redress resolving coordinator within PIUs PIUs budget mechanism complaints on • Brief and provide training to GRM access contractors points (IA, CPMO, contractors); • Disclose GRM to affected people before construction begins at the main entrance to each construction site; and • Maintain and update a database to document all complaints. Occupational Construction • Each contractor shall provide adequate Contractors Included in health and site sanitation and functional systems for sanitary conditions, toilet CSCs, IA, constructio safety facilities, waste management with waste separation, PIUs, LIEC n contract (OHS) labor dormitories and cooking facilities; • Effectively clean and disinfect the site. During site formation, spray with phenolated water for disinfection. Disinfect toilets and refuse bins and ensure timely removal of solid waste; • Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year; • Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection; • Work camp wastewater shall be discharged into the municipal sewer system or treated on-site using a portable system. Occupational • Provide personal protective equipment safety (safety hats and shoes) to all construction workers • Provide ear defenders to workers operating and working near noisy PME; • Prepare and obtain approvals of method statements for hazardous activities such as excavation; • Provide clean water for all construction sites and workers’ camps; • Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state; • Garbage bins at construction sites and camps will be set up, which will be periodically emptied and cleared to prevent outbreak of diseases; • An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events. A fully equipped first-aid base in each construction camp will be organized; • Ensure that occupational health and safety matters are given a high priority and awareness and

146

Potential Estimated Cost Responsibility Source of Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) Funds Issues Who Who Output 1 Output 2 Implement Supervise other training will be provided to all persons working or visiting the construction sites. Safety posters will be displayed prominently in relevant areas of the site. • Contractor will develop EHS management plan, which will be aligned with relevant government regulations and guidelines on COVID-19 prevention and control, or with international good practice guidelines as updated in the future (footnote 1). The plan will be reviewed by the supervision consultant in consultation with local public health inspectors, local medical officers, or other relevant health specialists, with a recommendation forwarded to the EA for clearance. The plan will include COVID-19 prevention and control measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID-19. Food safety • Inspect and supervise food hygiene in canteens on site regularly; • Canteen workers must have valid health permits; and • If food poisoning is discovered, implement effective control measures immediately to prevent it from spreading and take affected people to local hospital immediately. Disease • All contracted labor shall undergo a prevention, medical examination which should form the basis of health services an (obligatory) health/accident insurance and welfare provisions to be included in the work contracts. The contractors shall maintain records of health and welfare conditions for each person contractually engaged; • Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents; • Specify (by the IA and contractors) the person responsible for health and epidemic prevention and education and training on food hygiene and disease prevention to raise the awareness of workers; and • Provide induction and training by local health departments on prevention and management of communicable diseases. Social conflict • No major social risks and/or vulnerabilities prevention are anticipated as a result of the project; • The project construction workers will be engaged locally; and • Civil works contracts will stipulate priorities to (a) employ local people for works, (b) ensure equal opportunities for women and men, (c) pay equal wages for work of equal value, and to pay women’s wages directly to them; and (d) not employ child or forced labor.

147

Cumulative Cumulative • Contractors shall coordinate with other Contracto IA, CPMO - - None Impacts impacts during project contracts and other projects in the area of rs, CSCs construction influence in terms of construction schedule, access roads and disposal sites sharing; • Contractors shall develop material transport plans in consultation with local traffic management authorities, other contractors, and local community; and • Provide induction and training by local health departments on prevention and management of communicable diseases. Total 188 101 Source: TA consultants and EITs.

148

Table EMP-3: Potential Impacts and Mitigation Measures during Operation—Outputs 1 &2 Logistic Parks Budget (10,000 Responsibility Potential Item Mitigation Measures and/or Safeguards CNY) Source of Impacts Output Funds and issues Who Who Output 1 Implement Supervise 2 Ambient Excessive • Conduct periodic examination of emission Operator of Local 3.8/a 3.8/a Facility Air vehicle of vehicle exhaust pollutants for each vehicle in project EPB, IA Operation emissions, accordance with PRC regulation (GB18352.3-2005); facilities budget affecting • Conduct periodic air quality monitoring (OPFs), ambient air (through the EMS) in accordance with the monitoring Traffic quality program in the EMP. Management Bureau (TMB), EMS Acoustic Traffic noise • Conduct ambient noise monitoring and OPFs, EMS IA, CPMO, 0.52 /a 0.52/a EPBs budget Environme inspection, determine whether mitigation measures local EPB nt will be required for sites where noise levels are expected to exceed the standard. Climate • Develop flood emergency response plan OPFs, CMG Facility Change and ensure awareness and training of staff in the operation Adaptation event of an emergency. budget Solid Solid waste • Install and regularly maintain stormwater OPFs, EPB, 19/a 18/a Facility Waste and collection, storage and infiltration system; Municipal water operation Wastewate • Routinely collect and properly dispose drainage resource budget r solid waste from the sites; company, bureau • Place garbage bins and containers around EMS the facilities; • Bag all industrial waste and transport it to the designated landfill on a daily basis; • Waste packages (including pallets and cardboard) will be recycled and reused; • Recycle batteries for electric forklift after 5000 hours in use to the manufacturer. Sewers, • Regularly inspect and maintain project OPFs, EMS, Local EPB 3/a 3/a Facility wastewater sewer network within the facilities; Municipal operation collection • Regularly inspect and maintain drainage budget

and biochemical tanks; and company treatment • Conduct monitoring for discharged wastewater to ensure the quality meets standards. ISO ISO1400 • ISO certificates (ISO14001 and OPFs CPMO 12.2 for 10.9 Operati Certificati 1 and ISO9001) will be obtained within one year of project 3 years for on on ISO9001 completion 3 budget cetfified years

LEED • Information Exchange Center Building OPFs IA and for Output 1 will be LEED certified; and Green • Administration Building for Outputs 1 Building and 2.will be certified as Green Building per Certificati Chongqing and PRC standards. on

149

Item Potentia Who Budget Source Mitigation Measures and/or Safeguards l Implement/ (10,000 of Impacts Who CNY) Funds and Supervise issues Health Occupati OPFs/ --- Facility COVID-19 prevention and control measures will be and onal Local Operatio taken following the PRC government regulations and Safety Health health n Budget guidelines or international good practice guidelines as and authority updated in the future (footnote 1), such as Safety disinfection/cleaning of offices and work places, on- site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff/worker is infected with COVID-19. Total 38.52/a 36.2a

Source: EITs and TA consultants.

150

Table EMP-4: Potential Impacts and Mitigation Measures during Operation— Output 3: Inland Waterway Transport

Potential Who Implement Mitigation Measures and/or Budget Source of Item Impacts and Who Safeguards (10,000 CNY) Funds issues Supervise Ambient Air Excessive • Conduct periodic OPF, Traffic Local 10.0 /a OPF’s vehicle examination of emission of vehicles Manageme EPB, IA budget emissions and ships exhaust pollutants for nt Bureau and dusts, each vehicle in accordance with (TMB), affecting PRC regulation (GB18352.3-2005); EMS ambient air • Conduct periodic air quality quality monitoring (through the EMS) in accordance with the monitoring program in the EMP; and • Use LNG as fuel to reduce emission. Acoustic Traffic noise • Conduct ambient noise EMS Local 4.0 /a EPBs Environmen monitoring and inspection, determine EPB budget t whether mitigation measures will be required for sites where noise levels are expected to exceed the standard. Safety Road safety • Strictly enforce traffic law to Local traffic 15.0/a O&M Unit’s Measures and traffic improve road safety and reduce police, operation traffic accidents; OPF, truck budget • Set speed limit for Ro-Ro drivers trucks to 10 km/hr within the facility; • Employ traffic control when

necessary

• Provide safety training to all employees including truck drivers;

and • Specify equivalent safety requirements for the third-party trucking companies. Water Vessel • When adding fuel and OPF, EPB 3.0/a OPF quality, pollution lubrication, relevant regulations must wastewater operation waste control be strictly implemented; treatment budget water and • Staff in charge of fueling plant, EMS, solid must present; Municipal waste • Before loading oil, measurements of oil compartments water should be completed and all the company information should be collected to avoid oil spilling; • After valves of fuel and lubricant are carefully inspected, tubes are checked, and drip pans are placed under the pipe joints, oil loading can be practiced; • During oil loading, oil level change should always be inspected, so that engineers could make sure if any leak is happening through the pipes and pipe joints. If a leak is found, oil loading should be stopped immediately; • the cause of leak should be

151

Potential Who Implement Mitigation Measures and/or Budget Source of Item Impacts and Who Safeguards (10,000 CNY) Funds issues Supervise identified, and corrected before the oil loading could be continued; • If any leak happens, rescue measures shall be executed strictly according to The Ship Oil Pollution Emergency Plan; • The wastewater and trash produced by vessels should be collected by ports and piers in order to effectively reduce the pollution. Health Occupation • COVID-19 prevention and OPF/ Local health --- Facility and al Health control measures will be taken authority Operati Safety and Safety following the PRC government on regulations and guidelines or Budget international good practice guidelines as updated in the future (footnote 1), such as disinfection/cleaning of offices and work places, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff/worker is infected with COVID- 19. Total Cost 32/a Source: FRS and TA consultants.

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F. Environmental Monitoring, Inspection and Reporting

11. Environmental monitoring. The project monitoring program focuses on the environment within the project‘s areas of influence in Outputs 1, 2 and 3. A detailed environmental monitoring program has been developed which covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards to be followed are the national environmental quality standards of air, water and noise, and the pollutant discharge standards. The environmental monitoring programs for Outputs 1, 2 and 3 are shown in tables EMP-5, EMP-6 and EMP-7.

12. Internal monitoring/supervision and reporting by CSCs. During construction periods, CSCs will be responsible for conducting internal environmental monitoring in accordance with the monitoring plan (EMP-5, EMP-6). Supervision results will be reported through the CSCs’ reports to the IA.

13. External Environmental compliance monitoring by EMS. The CPMO will contract the local EMS or a certified environmental entity to conduct environmental monitoring in accordance with the monitoring program (EMP-5, EMP-6). A detailed cost breakdown will be provided by the two district EMSs when the environmental monitoring program is updated and finalized prior to implementation.

14. EMP implementation monitoring and progress reporting. The LIEC will review project progress and compliance with the EMP based on field visits, and review of the environmental monitoring results conducted by the EMSs. The findings will be reported to ADB through the annual environmental monitoring reports and project progress reports provided by CPMO with support from the LIC and LIEC. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation, information disclosure and GRM, and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. ADB will disclose the English version of the reports on the project website.

15. Project progress reports. A summary of the project’s environment performance and compliance with the EMP will be included in the project progress reports to be submitted by the CPMO to ADB, any significant issues or grievances raised will be highlighted. The progress reports will cover, among other things: (i) progress achieved by output as measured through the indicator's performance targets, (ii) key implementation issues and solutions, (iii) updated procurement plan, and (iv) updated implementation plan for the next 12 months.

16. Project completion environmental audits. Within three months after each subproject completion, or no later than one year with permission of the district EPBs, environmental acceptance monitoring and audit reports of each subproject completion shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the EMP monitoring and progress reporting process.

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Table EMP-5: Environmental Monitoring Program— Chongqing Transportation Logistics Park (Output 1) Who Subject Parameter Location Frequency Who Estimated Cost Implement Supervise CNY 10,000)

1. Construction Quality of pH, SS, Domestic four times EMS or Local EPB, 4 sewer from NH3-N, wastewater per year during certified PIUs work-camp CODCr, oil discharge at construction activities entity biochemical tank outlet Construction SS, pH, oil At wastewater Four times per year EMS or PIUs, 3 wastewater discharge during certified Local EPB points of all construction activities entity construction sites Ambient air Dust Visual Internal monitoring: CSC or PIU, LIEC 25.9 mitigation inspection at all once a week certified measures construction entity (water site spraying, cover vehicles); maintenance of vehicles & equipment TSP, At all twice per year during EMS or CPMO, PM10, construction construction activities certified Local EPB NOx sites, four entity monitoring points of four directions for five continuous days Noise LAeq Four monitoring 2 times per day, once EMS or CPMO, 27.5 points will be a week during the certified Local EPB set on the west, construction entity north, east and period south of project boundaries. Subtotal 37.4 2. Operation Phase Noise LAequ Four monitoring Twice per year (twice EMS or Local EPB 0.52 per year points at the a day, once in day certified boundary of time and once at entity logistic parks night time for 2 consecutive days) Ambient Air TSP, SO2, Two monitoring Twice a day for 3 EMS or Local EPB 3.8 per year NOx, PM10 points, one at consecutive days, certified upwind location once a year entity and the other one at downwind location Waste Septic tanks Weekly internal PIUs In operation and waste monitor of budget collection point Subtotal 4.32

148

Who Subject Parameter Location Frequency Who Estimated Cost Implement Supervise CNY 10,000) Total 41.72 Source: EITs and TA consultants estimate.

Table EMP-6: Environmental Monitoring Program—Nanpeng Logistics Park (Output 2)

Estimated Who Who Subject Parameter Location Frequency Cost Implement Supervise CNY 10,000) 3. Construction Quality of pH, SS, NH3- Domestic four times per year EMS or Local sewer from N, wastewater during construction certified EPBs, work-camp CODCr, oil discharge at work- activities entity CPMO 4 camps Construction SS, pH, oil At wastewater four times per year EMS or PIUs, Local 3 wastewater discharge during construction certified EPBs points of all activities environment construction entity sites Ambient air Dust mitigation Visual inspection at once a week CSC PIUs, 25.9 measures all construction site CPMO (water spraying, cover vehicles); maintenance of vehicles & equipment, TSP, PM10, At all construction twice per year EMS or CPMO, NOx sites, four monitoring during certified EPB points of four construction entity directions for five activities continuous days Noise LAeq Four monitoring 2 times per day EMS or CPMO, 27.5 points will be set on (daytime and certified EPB the west, north, east nighttime), once a entity and south of project week during the boundaries. construction period Subtotal 37.4 4. Operation Phase Noise LAequ Four monitoring Twice per year EMS or EPB 0.52 per year points will be set on (twice a day, once in certified the west, north, east day time and once at entity and south of project night time for 2 boundaries. consecutive days)

Ambient Air TSP, SO2, Two monitoring Twice a day for 3 EMS or EPB 3.8 per year NOx, PM10 points, one at consecutive days, certified upwind location and twice a year entity the other one at downwind location Waste and Septic tanks Weekly internal PIUs In operation wastewater and waste monitoring budget collection point Subtotal 4.32

149

Estimated Who Who Subject Parameter Location Frequency Cost Implement Supervise CNY 10,000) Total 41.72 Source: EITs and TA consultants.

Table EMP-7: Environmental Monitoring Program—Inland Waterway Transport (Output 3)

Operation Phase Who Subject Parameter Location Frequency Who Estimated Cost Implement Supervise (CNY 10,000)

Noise LAequ Two monitoring Establish baseline EMS or Local EPB 2,600 per year points prior to operation; certified Twice per year (twice entity a day, once in day time and once at night time for 2 consecutive days)

Ambient Air TSP, SO2, One monitoring Establish baseline EMS or Local EPB 30,000 per year NOx, PM10 point prior to operation; certified Once a day for 3 entity consecutive days, twice per year Surface Samples from Establish baseline EMS or CPMO and 8,000 water two locations prior to operation certified local EPB entity Total 40,600 per year Source: TA consultants estimate. Table EMP-8: Environmental Reporting Plan

Quarterly Project Progress Report From To Frequency A. Construction Phase

Internal progress reports CSCs PIUs/CPMO Monthly External environmental monitoring reports Local EMS or IA, PIUs Semi-annually certified entity

External Environmental Monitoring Reports CPMO ADB Annually EMS or certified EPB, CPMO, IA, PIUs, 3 month after the project Project Completion report entity ADB completion B. Operation Phase Annual Environmental Monitoring Reports Annually till the project and EMP implementation report CPMO ADB completion report is issued Source: TA consultants.

G. Training, Capacity Building, Awareness Raising

17. To ensure effective implementation of the EMP, the capacity of the CPMO, IA, OPFs, CSCs and contractors must be strengthened, and all parties involved in implementing mitigation measures and monitoring of environmental performance must have an understanding of the goals, methods, and the best practices of project environmental management. The local EPBs and the LIEC will offer training specific to their roles for all the project outputs. The main training emphasis will be to ensure that the contractors, CSCs, IA and OPFs are well versed in environmentally sound practices and are able to undertake all construction and operation with the appropriate environmental safeguards.

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18. The training and awareness raising program addresses immediate training needs, i.e. training needed for project personnel in order to ensure that involved institutes are well versed in environmentally sound practices and are able to undertake all construction with the appropriate environmental safeguards.

19. The training program also addresses long-term capacity building and awareness raising needs, i.e. for the operational phase of the project. Training and awareness raising campaigns will be provided by qualified experts on logistics park management with 3R principals, operation and maintenance, low carbon and sustainable urban transport management planning, eco- logistics facility operation and management, and urban traffic safety.

20. Training Needs Assessments will be conducted by the LIEC to tailor the training for maximum impact. The trainer will include in their program a before/after assessment to evaluate the success of the training. An evaluation questionnaire will be used to assess the effectiveness of the training and the training program will be adjusted based on feedbacks. Training will be provided throughout the implementation of the project and the training program is summarized in Table EMP-9.

Table EMP-9: Training Program

Cost Sub- # of # of (CNY/ Total Subproject Attendees Contents Frequency days) person person- Cost day) (CNY) EMP adjustment CPMO, IA, EMP contents, EMP Twice - 2 20 100 8000 and PIUs, adjustment if needed, Once prior to, implementation construction prepare site specific and once after supervision EMP, roles and the first year of companies, responsibilities, project contractors monitoring, supervision construction and reporting procedures, review of first year experience (after 12 months) Grievance CPMO, IA, GRM procedures; Roles Twice: Once 1 20 100 4000 redress PIUs, and responsibilities; prior to, and mechanism construction Review of first year once after (GRM) supervision experience (after 12 the first year of companies, months) project contractors, construction local EPBs Environmental CPMO, PIUs, Pollution control on Once (prior to 2 15 100 3000 protection construction construction sites (air, Construction supervision noise, wastewater, solid commencing) companies, waste) contractors Environmental CPMO, PIUs, Monitoring methods, Once (at 1 10 100 1000 monitoring construction data collection and beginning of supervision reporting requirements project companies, construction) contractors Safety Training CPMO, PIUs, Traffic safety, Twice: Once 1 40 50 4000 construction construction safety, road prior to, and supervision safety, occupational once after companies, safety the first year of contractors project construction

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Total estimated cost: CNY20,000 Source: TA consultants estimate.

21. Capacity Building. In addition to training for EMP implementation, the project will provide consulting services and training to assist the staff of IA in project management, environmental management, procurement, as well as external resettlement and environmental monitoring. The institutional strengthening of the project will also involve training by LIC in operation and maintenance of completed facilities. Part of this training will focus on teaching staff how to use a set of indicators to monitor performance of the completed facilities. These indicators will be designed by LEC prior to operation start-up.

H. Public Consultation

22. Meaningful consultation was conducted during the PPTA. Direct public participation was conducted as an ongoing element in the development of the project outputs. These activities were carried out by the EIA institutes in their preparation of the EITs with guidance from the PPTA environmental specialists following the PRC guidelines and ADB SPS (2009) requirements.

23. Future plans for public involvement during the design, construction, and operation phases were developed during PPTA. These plans include public participation in (i) monitoring impacts and mitigation measures during construction and operation, (ii) evaluating environmental benefits and social impacts, and (iii) interviewing the public after the project is completed. The IA is responsible for public participation during project implementation. They will be supported by the LIEC.

Table EMP-10: Public Consultation Plan Budget Organizer Format No. of Times Subject Attendees (10,000 CNY) Construction Stage IA Distribute surveys to 5 times: 1 time Adjusting of mitigation Residents 3.15 affected people Before construction measures, if necessary; adjacent commences and 1 time Construction impact; to output, each year during comments and suggestions representative construction s of social sectors Operational Stage IA Distribute surveys to Once in the first year Effectiveness of mitigation Residents 1 affected people measures, impacts of close to output operation, comments and sites suggestions Total Budget 4.15 Source: TA consultants estimate.

I. Mechanisms for Feedback and Adjustment

24. Based on environmental inspection and monitoring reports, the CPMO and IA shall decide whether (i) further mitigation measures are required as corrective actions, or (ii) some improvements are required for environmental management practices.

25. The effectiveness of mitigation measures and monitoring plans will be evaluated by a

152 feedback reporting system. Adjustment to the EMP will be made, if necessary. The CPMO and its EMU will play a critical role in the feedback and adjustment mechanism.

26. The need to update and adjust the EMP will be reviewed when there are design changes, changes in construction methods and program, negative environmental monitoring results or inappropriate monitoring locations, and ineffective or inadequate mitigation measures. Based on environmental monitoring and reporting systems in place, the CPMO and IA (with the support of the LIEC) shall assess whether further mitigation measures are required as corrective action, or improvement in environmental management practices are required. The CPMO will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP will be submitted to ADB for review and approval, and will be disclosed on the ADB project website.

J. Cost Estimates

27. The total cost for EMP implementation comprises the following items: (i) mitigation measures, (ii) environmental impact monitoring by EMS or a certified entity, (iii) training, (iv) public consultation, and (vi) consulting service from LIEC. The total estimated cost of $823,000 (CNY 5.18 million) is summarized in Table EMP-11.

Table EMP-11: Estimated Budget for EMP Implementation

Estimated Cost (USD) Sub-Total No. EMP Item Two Logistics Inland Waterway (USD) Parks Transport 1 Mitigation measures (construction period) 458,730 N/A 458,730 2 Mitigation measures (operation period) 118,603 per year 7,079 per year 125,683/yr 3 Environmental Impact monitoring (construction 118,730 N/A 118,730 period)

4 Environmental Impact monitoring (operation 13,714 per year 6,444 per year 20,159/yr period) 5 Training 3,175 6 Public consultation (operation period) 6,587 7 LIEC (during construction) 90,000 Total 823,063 Source: project FSRs, EITs and PPTA consultants estimate.

28. The LIEC cost of $90,000 will be funded by the loan implementation consulting service package under the ADB loan. The consulting service package also has a budget of $90,000 for environmental impact monitoring and the IA will bear the remaining cost of $49,000.

K. Environmental Contract Clauses

29. The following contract clauses for safeguarding the environment and safety during construction will be incorporated into all tender documents for civil work packages of the two logistics parks (Outputs1 and 2).

30. Site specific environmental management plan: The contractor shall prepare a site- specific environmental management plan (SEMP) prior to the commencement of construction works, and shall submit the SEMP to CPMO and IA for review and approval. The plan shall

153 include method statements on the implementation of pollution control and mitigation measures, as well as an emergency spill contingency plan for containing and cleaning up accidental spills on construction sites. The SEMP shall be updated as needed and when new environmental issues not covered by the SEMP arise. A SEMP should be prepared for each individual work package. 31. Siting of construction facilities: Locations of all spoil disposal sites shall be at least 300 m from the nearest water body; Locations of concrete batching plants shall be at least 300 m upwind of the nearest household; Locations of borrow areas shall be at least 500 m from residential areas; and Borrow areas and spoil disposal sites with long, steep slopes, susceptible to erosion shall be avoided and shall include small level cut-off drains to break up and redirect run-off.

32. Construction timing: Construction activities should not be scheduled at night time (between 22:00 and 06:00 hours). If night time construction work is necessary, the contractor shall not use prevent high sound power level equipment and nearby residents shall be notified of such night time activities well beforehand.

33. Protection of air quality: (i) Hoarding shall be erected around dusty activities; (ii) To suppress dust, hauling and access roads shall be sprayed with water regularly (at least once a day but frequency to be responsive to season and local conditions); (iii) The storage time of construction and demolition wastes on site shall be minimized by regularly removing them off site; (iv) Batching plants shall be equipped with fabric filters and/or wet scrubbers to reduce dust emissions; (v) Vehicles with an open load-carrying case, which transport potentially dust- producing materials, shall have proper fitting sides and tail boards; (vi) Dust-prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with a strong tarpaulin; (vii) Vehicle speed on unpaved haul roads shall be restricted to 10 km/h or less; (viii) Construction vehicles and machinery shall be kept in good working order, regularly serviced and with engines turned off when not in use; (ix) Wheel washing equipment shall be installed or manual wheel washing will be conducted at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads; (x) In periods of high wind, dust-generating operations shall not be permitted within 200 m of residential areas. Special precautions need to be applied in the vicinity of sensitive areas such as schools, kindergartens and hospitals; (xi) Material stockpiles shall be covered with dust shrouds. For the earthwork management for backfill, measures shall include surface press and periodical spraying and covering. The extra earth shall be cleared from the project site in time to avoid long term stockpiling; (xii) Unauthorized burning of construction and demolition waste material and refuse on site shall be strictly prohibited, and shall be subject to penalties for the Contractor, and withholding of payment.

34. Protection of the acoustic environment: (i) During daytime construction, the contractor shall ensure that: (a) noise levels from equipment and machinery conform to the PRC standard for Noise Limits for Construction Sites (GB12523-2011) and the World Bank Group’s Environmental Health and Safety Standards, and machinery properly maintained to minimize noise; (b) equipment with high noise and high vibration are not used near village or township areas and only low noise machinery or the equipment with sound insulation or exhaust muffling devices is employed. (ii) Temporary noise barriers or hoardings shall be deployed around the equipment to shield residences when there are residences within 80 m of the noise source. (iii) Noise levels at the construction site boundaries shall be monitored regularly. If noise standards are exceeded by more than 3 dB, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation. (iv) The speed of bulldozer, excavator, crusher and other transport vehicles travelling on site shall be controlled. Noise

154 reduction measures on equipment shall be adopted, with regular equipment repair and maintenance to keep them in good working condition. (v) The speed of vehicles travelling on construction sites and haul roads shall be limited to 10 km/h or less. The use of horns shall be forbidden unless absolutely necessary. The use of whistles shall be minimized. (vi) Construction activities shall be planned in consultation with local communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in least disturbance.

35. Protection of water quality: (i) Portable toilets and small package wastewater treatment plants and/or septic tanks shall be provided on construction sites and construction camps for the workers. If there are nearby public sewers, interim storage tanks and pipelines will be installed to convey wastewater to public sewers. Construction sites and construction camps shall also have drainage provisions to collect and treat site runoff. (ii) Sedimentation tanks shall be installed on construction sites to treat process water (e.g. concrete batching) and muddy runoff with high concentrations of suspended solids. (iii) Construction machinery shall be repaired and washed at designated locations. No onsite machine repair and washing shall be allowed. (iv) Storage and refueling facilities for fuels, oil, and other hazardous materials shall be within secured areas on impermeable surfaces, and provided with bunds and cleanup kits. If refueling in the field is required, it shall be done from road-licensed fuel trucks away from watercourses or other environmentally sensitive areas. (v) The contractors’ fuel suppliers must be properly licensed, follow proper protocol for transferring fuel, and must be in compliance with all related PRC laws and regulations. (vi) Material stockpiles shall be protected against wind and runoff waters which might transport them to surface waters. (vii) Any spills shall be cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated according to PRC norms and codes. Records must be handed over without delay to the local EPB. An emergency spill contingency plan shall be prepared by the Contractor as part of the SEMP and personnel shall be trained in its use.

36. Climate change adaptation: Consider potential impacts from extreme weather events due to climate change in designing buildings and infrastructure: (i) Adopt appropriate protective measures such as vegetation cover, permeable paving and stormwater collection systems to maximize stormwater retention on site and minimize discharge to network; (ii) Adjust drainage design standard by 6-10% to take account of future climate change impacts; (iii) Develop emergency response plan for floods.

37. Protection of biological resources and wildlife: Construction workers are prohibited from capturing any wildlife during construction; Existing vegetation where no construction activity is planned shall be preserved; and Trees or shrubs shall be removed only as the last resort if they impinge directly on the permanent works or necessary temporary works.

38. Solid waste management and material re-use: Prior to main earthworks, the top soil (10-30 cm) shall be removed and stored temporarily, which shall be re-used on site for restoration works; Attempts shall be made to maximize the re-use of earth cut materials and construction and demolition wastes on the project; Contractors shall develop spoil disposal site management and restoration plans. The contractors shall only use material from borrow pits that have been approved; and Construction activities in borrow areas and spoil disposal sites shall be planned so that the open area is minimized and rehabilitation shall be completed progressively; Restoration of spoil disposal sites and borrow areas shall follow the completion of works in full compliance with all applicable standards and specifications, and shall be required

155 before final acceptance and payment under the terms of contracts.

39. Construction site sanitation: (i) Contractor shall provide adequate and functional systems for sanitary conditions, toilet facilities, waste management, labor dormitories and cooking facilities. The site shall be effectively cleaned and disinfected. During site formation, the site shall be sprayed with phenolated water for disinfection. Toilets and refuse bins shall be disinfected and solid waste shall be removed timely. (ii) Rodents on site shall be exterminated at least once every 3 months. Mosquitoes and flies shall be exterminated at least twice each year. (iii) Public toilets shall be provided in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and designated staff responsible for cleaning and disinfection shall be appointed. (iv) Work camp wastewater shall be discharged into the municipal sewer system or treated on-site using portable systems or septic tanks.

40. Occupational safety: (i) A person responsible for environmental, health and safety during construction shall be appointed. (ii) Personal protective equipment (safety hats and shoes and high visibility vests) shall be provided to all construction workers. (iii) Ear defenders for hearing protection shall be provided to workers operating and working near noisy power mechanical equipment. (iv) Safety goggles and respiratory masks shall be provided to workers doing dusty work. (v) Method statements shall be prepared and approvals obtained for hazardous activities such as excavation.

41. Community health and safety: (i) A traffic control and operation plan shall be prepared together with the local traffic police prior to any construction. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance. Haulage routes and schedules shall be assigned to avoid transport occurring in the central areas, traffic intensive areas or residential areas. (ii) Residents and businesses shall be informed in advance of construction activities, given the dates and duration of expected disruption, dusty and noisy activities, and access to the grievance redress mechanism. Local communities shall be alerted of the time and location of hazardous activities. Construction billboards, which include construction contents, schedule, responsible person and complaint hotline number, will be erected at each construction site. (iii) Clear signs shall be placed at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc. and raising awareness on safety issues. Heavy machinery shall not be used at night, where possible, and all such equipment shall be returned to its overnight storage area/position before night. All sites shall be made secure, discouraging access by members of the public through appropriate fencing, signage and/or security personnel, as appropriate. (iv) Continual communication with the villages and communities along the road alignments shall be maintained and the grievance redress mechanism shall be accessible and effective.

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APPENDIX II: CLIMATE CHANGE RISK ASSESSMENT REPORT

TECHNICAL ASSISTANCE CONSULTANT’S REPORT Climate Risk and Vulnerability and Assessment of Chongqing Integrated Logistics Demonstration Project People’s Republic of China

Project Number: SC 105545 September 2015

Prepared by Wei Ye

This Consultant’s Report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical Assistance): All the views expressed herein may not be incorporated into the proposed project’s design.

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I. INTRODUCTION

1. Climate change will pose various threats to urban infrastructure. In order to achieve a sustainable development, it is important to make climate adaptation adjustments to engineering specifications, alignments, and master planning; incorporate associated environmental measures; and adjust maintenance and contract scheduling in urban infrastructure development (ADB 2010). An effective climate-proofing of urban infrastructure development requires project specific climate change risk, vulnerability assessment and identifying, evaluating and implementing feasible adaptation measures to strengthen project resilience to future climate change impact. This report presents the climate change risk, vulnerability and assessment (CRVA) for the Chongqing Integrated Logistics Demonstration Project (the Project) in the People’s Republic of China (PRC). Two future time slice, i.e., 2050 and 2100, were used to illustrate the impact consequences.

A. Background of the Project and the Project Area

2. Chongqing is located at the southwest of the PRC. With an area of 82,403 km2 and total population of 29.5 million, it is the biggest city between the PRC’s developed coastal area and the less developed western area. Geographically, Chongqing is on the southeast edge of the Sichuan Basin, at the upper reach of the Yangzi River, which is the most important inland waterway transport corridor in the PRC. Surrounded by mountains, Chongqing has well developed river network system. Yangzi, the longest river in the PRC, passes through Chongqing from the southwest to the northeast. Other major rivers passing Chongqing include Jialing, Wu, Fu, Qi and Daning.

3. Chongqing is far away from ocean and belongs to subtropical humid monsoon climate zone. Its climate features include mild climate, four distinct seasons, abundant rainfall, long frost-free season, low sunlight and foggy. The annual average temperature is 18C and the extreme maximum temperature is 43C recorded in August 15, 1951. The average frost-free period is as long as 337 days. The average annual relative humidity is between 78-83%. The average annual precipitation is about 1100mm, accompany with a relative high spatial and temporal variation. The precipitation between May to October accounts for about 80% of the annual total. The maximum precipitation is 225.7 millimeter (mm) recorded in July 5, 1962. The annual average sunshine is 1,260 hours, only 28.4% of the total available annual sunshine hours (ADB 2015a).

4. Due to its unique geographic location, Chongqing becomes the central connection point for road transportation, water transportation and rail transportation and is one of major transport and logistics centers of the PRC. However, the random, isolated and separated small logistics centers evolved from the past without systematic planning cannot meet the fast economic development need. The logistics development has become critical to facilitate the future economic development in the PRC. In 2013, in order to optimize the logistics development in Chongqing, the CMG issued Guidelines for Speeding-up the Yangtze River Upper Reach Logistics Center Development, which outlines the requirements of relocating the current small and scattered trade and logistics centers away from the central city, to reduce the traffic congestion and air pollution in the downtown area. The proposed project components will contribute to the development of Chongqing logistics infrastructure system directly, with the goal of this project being to improve logistics efficiency, lower logistic costs and thus strengths economy locally, regionally and beyond.

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Shapingba District

Banan District

Chongqing Transportation Logistics Park

Nanpeng Logistics Park

Chongq ing

Figure 1.1: Location of the project sites and Shapingba meteorological station

5. The proposed project is in line with CMG, the national and regional logistics development strategies and will benefit the regional economic development, environmental improvement, and increasing the standard of living in Chongqing urban area.

6. Logistics is a system which covers transportation, storage, distribution, information management and related services, and its design comprises logistics system plan, logistics subsystem plan and logistics park plan. The proposed project has four outputs and the outputs are summarized below:

i) Output 1: Chongqing transportation logistics park developed. This output will develop a park with three functional areas, namely (i) roadway logistics hub and city distribution center, (ii) logistics financial exchange center, and (iii) road- rail intermodal logistics hub. This will be the major terminal for Chongqing, located at Tuanjiecun within the Shapingba district, and at the starting point of Yu-Xin-Ou line. The completion of the logistics park will directly support and benefit the international rail corridor operations. ii) Output 2: Nanpeng logistics park constructed. This output will develop a park with three functional zones, namely (i) freight transfer area; (ii) customs inspection staging area, and (iii) type B (open access for other companies) bonded zone This will be the secondary terminal located at Nanpeng within the Banan district.

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iii) Output 3: Yangtze River inland waterway Ro-Ro transport demonstrated. This output will (i) build energy efficient Ro-Ro ships (approximately 4000 tons each); (ii) procure alternate energy (e.g. liquefied petroleum gas) tractors and trailers for the Ro-Ro operation; and (iii) establish a Ro-Ro logistics information system. The Ro-Ro operation shall use Guojiatuo Port in Chongqing and Yinxingtuo Port at Yichang. iv) Output 4: Cloud Based Intelligent Logistics information system established. This output will develop a system including (i) information infrastructure and interfaces; (ii) logistics information sharing platform; (iii) logistics trade service platform; iv) logistics governance service platform; and (v) logistics value added services. The logistics information system will serve as the integrated logistics information system for the entire city of Chongqing and will serve as the platform for logistics information sharing, logistics operation, logistics trading, government clearances and logistics financial services. v) Output 5: Institutional capacity strengthened. This output will provide technical support for project implementation and training to improve the management capacity of the staff in the executing agency and the implementing agency and other related entities on logistics development and operation.

7. The project has several innovative features by introducing and applying new concepts and technologies. Some of them are summarized in the following: • Cloud Based Logistics Information System • Stormwater Management and Rainwater Reuse • Ecological Logistic Park • Public-Private-Partnership (PPP)

8. The Nanpeng Logistics Park is located in Banan District of Chongqing while the Chongqing Transportation Logistics Park is located in Shapingba District. The river systems in Chongqing and the locations of the two logistics parks are shown in Figure 1.1. Output 1 involves substantial infrastructure development that requires designing and planning before construction.

Banan District

9. The proposed Nanpeng Logistics Park is located inside the Chongqing Roadway Logistics Base, which is in Banan District, 30 kilometers (km) away from downtown Chongqing. Banan District has longitude from 106°25’29” to 106°59’58”E and the latitude from 29°07’45” to 29°46’23”. The total area of the district is 1825 square kilometres (km2). Banan District is a transition zone of Chuandong Valley and Nanyuan Basin. The topography is long and narrow in the east and flat in the south and north. The terrain of the project site is high in the southeast and low in the northwest, with distinct rise and fall and mixed hill and valley. The highest elevation is the Fangdou Mountain of 1132.6 meters above sea level (masl). The elevation of north edge, which is the erosion control point of the district, is 154masl. The difference of elevation is 979 meters (m). The topography of the project site is also hilly, with the highest elevation being 427masl and the lowest being 380masl, an elevation difference of 47m.

10. The characteristic of local metrological parameters are shown in Table 1.1. Average number of sunshine days in a year is 185 with sunshine ratio of 23%. In August, due to subtropical high pressure, there are more sunny days, with 213.8 hours of sunlight time and 52% of sunshine ratio. In December, sunlight is the lowest, with 29.8 hours sunlight time and 19% of sunshine ratio. Average number of rainfall days in a year is 158. In winter, due to dry cold air

160 from north rainfall is low. During spring, warm humid seasonal wind comes, along with increase of temperature and rainfall. In summer, because of subtropical pressure it becomes dry and hot. In September, as subtropical pressure leaves the area, drizzles come which makes it a second rainfall season.

11. The Yangtze River flows through Banan from west to east, with river section over 60 km. There are 98 rivers in this district that are all tributaries of the Yangtze River. The total flow distance of these tributaries within the district is 204.9 km and the catchment area is 1504.35 km2.

Shagpingba District

12. Shapingba District belongs to the Sichuan Basin South Yangtze River Valley. It has a similar climate as Banan District. The general climate information of Shapingba is also listed on Table 1.1. The proposed Chongqing Transportation Logistics Park is located inside the district in the area of Jialing River watershed. Jialing River is originated from Min Mountain and Qinlin Mountain area. Jialing River passes through Shapingba and joins Yangtze River at downtown Chongqing. The total length of Jialing River within Chongqing is 153.8 km and the catchment area is 8146 km2. According to the data collected at Beipei hydrological station, the maximum flow rate of Jialing River is 44,800 m3/s, the average flow rate is 2,120 m3/s, highest water level is 208.17 m, the lowest water level is 176.81 m and average water level is 179.64 m.

Table 1.1: Local Metrological Parameters in Banan District 1. Parameter 2. Description 3. Banaa 4. Shapingba Temperature Average: 18.4°C 17.8°C Highest temperature: 42.2°C 42.2°C Lowest temperature: -2.4°C -1.8°C 5. Precipitation Average precipitation: 1151.5 mm 1151.5 mm Maximum daily precipitation: 192.9 mm 191.7 mm Maximum hourly precipitation: 65.2 mm 6. Average 80.0% 79% Humidity 7. Average 98.39 kPa Pressure 8. Wind Annual predominant wind N 13% NNW 29% direction and speed direction and frequency: Summer predominant wind NNW direction: NNW Annual average wind speed: 1.1 m/s 1.5 m/s Annual static wind frequency: 33% 33% 9. Special Average annual foggy days: 68.3 days 43 days meteorology Average annual sunlight 1259.5 hour 1140.5 hour duration: Average annual thunderstorm 28.3 days day: Source: Nanpeng EIT (Output 2), Shapingba EIT (Output 1).

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Potential risks of climate change to the project

13. The potential climate risks to urban infrastructure such as logistic park mainly come from temperature and precipitation, and usually caused by their extremes and aftermath. In terms of temperature, the high temperature caused extreme heat places stress on road infrastructure; softens the asphalt causing traffic rutting and potentially resulting in cracking. Extremely low temperature can cause fatigue and thermal cracking of the pavement. In terms of precipitation, a torrential rain can lead to urban waterlogging if the drainage system has inadequate capacity. Flood resulted from torrential or heavy rainfall can cause severe water damage to roads.

14. The latest climate science points to an increasingly rapid pace of climate change over the forthcoming decades. Such change will likely alter the long term climatic averages and, in particular, the frequency and severity of extreme weather events. Hence the heat extremes and extreme rainfall, as well as floods are likely to become more intense and more frequent during this century.

15. Chongqing has a well-developed river network system with 96 rivers crossing its urban area. Beside the Yangtze and Jialing Rivers, there are 20 rivers that have catchment area larger than 100km2. River flood has been the biggest climate hazard to the city, and then it is followed by the urban flood (waterlogging) caused by localized severe storm. The flood of Yangtze and Jialing Rivers are caused by long time heavy rainfall in their headstream of the large mountains areas outside of the city boundary. This type of flood is generally characterised by large amount discharge and high flood peak, with long duration (about 8 days), such as the flood in 1954 and 1998. The flood from the middle and/or small rivers is usually caused by the local torrential rain, which is characterised by high intensity and short duration (1-3 days). The biggest flood happened when Yangtze or Jialing and the flood from the other rivers joined at the city. The high water level of the Yangtze and Jialing blocks river flows from other rivers, such as the flood in 1870 and 1981.

16. Chongqing does not have large engineering project for flood protection at its upstreams. Most of the flood protection engineering project in the city is not up to standard, hence cannot provide effective protection. Part of the urban drainage system was built during the 1960s to 70s of last century and does not have sufficient storm water drain capacity. These has made Chongqing vulnerable flood and historically flood has caused tremendous damage at Chongqing. The flood in July 1981 inundated vast urban area along the Yangtze and Jialing Rivers; affected more than 133,000 people; damaged 2,560 km2 of housing; cut-off the train transport from Chongqing for 9 days; and stopped the Yangtze River navigation for 7 days. The direct economic loss is as high as RMB180 million (1981 price). Clearly river and urban flood is the biggest climate risk to the proposed project in terms of its potential damage it may cause to the logistic park infrastructure and the disruption of the transport system hence the normal operation of the parks (Chongqing Hydraulic Bureau, 2006).

17. The project also aims to introduce new techniques in storm water management and rainwater reuse, as well as the concept of ecological logistic park in project design and construction. The project feasibility study report pointed out that to determine an effective ecological strategy and planning, detailed climate data and derived information is needed. In addition to temperature and precipitation, this study analyses the baseline data and future climate projection for some of this data, including solar radiation and heat and cold accumulation.

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II. METHODOLOGY

18. A risk is the product of the interaction between hazards, exposure and vulnerability. In this study, hazard is used to denote the threat from climate factors of rainfall and, to a less extent, temperature, their extremes and aftermath. Exposure is referred to the presence of assets that could be adversely affected when climate hazards happen and which, thereby, are subject to potential future harm, loss, or damage. With the context of the proposed project, it is the requirement of the all-climate continuous logistics service of the project. Vulnerability is defined generally as the susceptibility to be adversely affected, such as the insufficient drainage capacity and lack of flood protection. The vulnerability can be either physical or socio-economic. This section discusses the method of analyzing the climate factors that may pose threat to pertinent project components based on their historical observation and future projections under climate change.

19. The future climate projection is subject to considerable uncertainty. One important aspect in climate change V&A assessment is to comprehend such an uncertainty range in decision making and policy planning process. Within this context, any climate change scenario constructed on single Greenhouse Gas (GHG) emission rate and/or individual GCM outputs is generally considered inappropriate for V&A assessment purposes, because it cannot provide information of the uncertainty range associated with its projection. The first important uncertainty is the uncertainty of future GHG emission rate. To reflect such an uncertainty, different GHG Representative Concentration Pathways (RCPs) was used by IPCC AR5 to represent different trajectories of future social-economic development. The second important uncertainty is resulted from our limited understanding to the climate systems, hence possible errors in GCM simulation of the real world. The climate sensitivity resulted from a comprehensive scientific experiment involved a large number of GCMs was introduced to produce a possible uncertain range and was generally adopted in V&A assessment. Thus a combination of different RCPs and climate sensitivities could be used to characterise the future climate change scenario as well as associated uncertainty range. RCP6.0 with mid-climate sensitivity represents a middle range future global change scenario, which was used as an indicator of the mid scenario projection of the future global change, while RCP4.5 with low-climate sensitivity and RCP8.5 with high- climate sensitivity was used as an indicator of the corresponding low and high bound of the uncertainty range (Table 2.1). The third important uncertainty in climate change scenario generation is the difference between GCM simulations. As the current climate science still cannot identify any individual GCM that may be superior to others in simulating future climate change, it makes the V&A assessment a challenge task given the difference of GCM simulation results for a given area. To account for such an uncertainty in V&A assessment, a pattern scaling method was adopted and applied to wide range of GCMs to build a model ensemble. The average of models’ simulation of changes for a climate variable is normally used to capture the middle conditions, as that the average often agrees better with observed climate than any individual model estimates (Reichler and Kim 2008). In this study however, the 50 percentile of the GCM model ensemble was used in order to prevent the influence of huge outliers in some GCM simulation on the final change projection values.

20. The method was thus termed as ‘ensemble based pattern scaling’. Details of the method as well as the steps of constructing the future climate change scenario can be found in Appendix, including the 40 IPCC AR5 GCMs used for model ensemble.

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Table 2.1: Three climate projections and their input conditions represent the uncertainty ranges Climate projection Representative Concentration Pathways Climate sensitivity Mid scenario RCP6.0 Mid Low scenario RCP4.5 Low High scenario RCP8.5 High

21. For this study, only site-specific climate change scenario is needed due to the small spatial scale of the project area. The site specific temperature change scenario was constructed by perturbing the station observed daily data using the normalised GCM pattern value from the GCM grid where the climate station is located. In this study, all observation data from a station was used to represent the baseline climate condition for the site.

22. For site specific extreme value analysis, we first chose an intensity value (such as 100 year return maximum daily precipitation) and then selected its normalised pattern value from the GCM gird where the site is located. The value is then applied to the same precipitation intensity that derived from the observed historical data to generate the future change scenarios.

23. In the following two sections, the method described above is adopted to generate the change projections for climate variables that may become hazardous to the proposed project. Rainfall data were collected for the Shapingba meteorological station inside Chongqing Transportation Logistics Park. Table 2.2 lists the information for the station, and its location shows in Figure 1.1.

Table 2.2: Information of the meteorological stations Station Name Longitude (°) Latitude (°) Altitude (m) Observation period Shapingba 106.47 29.58 259.1 1951-2013

III. CLIMATE OBSERVATION AND CHANGE PROJECTIONS

A. Observational temperature data and their future projections

24. The proposed project is located in the sub-tropic monsoon Asia climate zone with warm temperature. The climate change will very likely cause temperature increase for the project area. By 2050, the annual average temperature is projected to increase 1.4°C under mid scenario with an uncertainty range of 1.0 to 2.8°C from the low and high scenarios. By 2100, it is 2.7°C under mid scenario with a range between 1.4 to 6.4°C. Figure 3.1 shows the observed monthly normal mean temperature and its future climate change projections of Shapingba. The projection has relative small uncertainty between low and mid projection, but has a high uncertainty under high climate scenario. The maximum and minimum temperature has the similar magnitude change as the mean temperature.

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40 Baseline 35 2050 projection

2100 projection 30

0 1 2 3 4 5 6 7 8 9 10 11 12

Figure 3.2: Shapingba monthly normal temperature and future projection. The bar indicates the uncertainty range of the projection as defined in Table 2

B. Observational Rainfall Data and Ttheir Ffuture Projections

Baseline:

25. The precipitation in Chongqing is characterised by relative high inter-annual variability and seasonality. The annual average rainfall of Shapingba is 1100 mm with a coefficient of variation (Cv) of 0.17. The maximum was 1617 mm recorded in 2014, while the minimum was 740 mm of 1958 (Figure 3.2). The average rainfall of the rainy season from May to September (5 month) is 757 mm, which accounts for almost 60% of the annual total. The rainfall will likely to increase under climate change. By 2050, the range of annual rainfall increase is 1.7 to 4.7% under low and high scenario, with mid increase of 2.3%; and by 2100 the range is 2.4 to 11.2% with mid increase of 4.7%.

26. The monthly rainfall change from the mid scenario projection is relative small, particularly for the dry season. Rainfall is projected to increase for all months except October, which was projected to be decreased slightly. The rainfall increase in the rainy season is relative large, and generally has large uncertainty range, and the uncertainty range is skewed to a large rainfall increase from the mid scenario projection (Figure 3.3).

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1800.00

1600.00

1400.00

1200.00

1000.00 800.00

600.00

(mm) Precipitation 400.00

200.00

0.00

1954 1957 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 1951 Year

Figure 3.2: Shapingba annual precipitation. Annual average=1100 mm, Cv=0.17

250

Baseline

200 2050 projection 2100 projection 150

100

0 1 2 3 4 5 6 7 8 9 10 11 12

Figure 3.3: Shapingba Monthly normal precipitation and future projections (mm).

The bar indicates the uncertainty range of the projection as defined in Table 2

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Extreme rainfall and its projection

27. According to the extreme value theorem, for normalized maxima (minima) of a sequence of independent and identically distributed random variables such as annual daily maximum rainfall, the generalized extreme value (GEV) distribution is the only possible limit distribution, and it is often used as an approximation to model the maxima (minima) of long (finite) sequences of random variables. In this study the GEV distribution was applied to investigate extreme rainfall and their future changes. A detailed method description and analysis process can be found in Ye and Li (2011).

28. The GEV distribution was applied to the annual maximum daily precipitation analysis. Figure 3.4 illustrates the results. Table 3.1 summarises some of the key precipitation intensities and theirs future changes. As shown in Table 3.1, the current 20 year return maximum daily rainfall is 180.29 mm for Shapingba. The mid scenario projection for such an event is 192.44 mm by 2050 and 204.13 mm by 2100, which represents a 6.7% and 13.2% increase in rain intensity. The upper bound change, projected by the high scenario, could reach 205.40 mm and 237.99 mm for 2050 and 2100 respectively, or a rain intensity increase of 13.9% at 2050 and 32.0% at 2100.

29. In summary, the climate change will likely lead to rainfall increase for the project area. The increase in normal rainfall may just be noticeable, but the change in heavy rainfall is likely to be significant, which implies an increased flood risk in the future.

Table 3.1: Shapingba GEV Results of Annual Maximum 1 day Rainfall and its Future Projections

Return 2050 scenario 2100 scenario period Baseline Low Mid High Low Mid High (year) Annual maximum daily rainfall projections (mm) 5 125.61 130.80 132.70 140.19 132.64 139.46 158.87 10 151.96 158.59 161.05 170.73 160.97 169.78 194.96 20 180.29 189.16 192.44 205.40 192.34 204.13 237.99 50 222.00 235.33 240.25 259.68 240.10 257.76 309.22 100 257.46 275.58 282.26 308.68 282.05 306.06 377.07 Change (%) 5 -- 4.1 5.6 11.6 5.6 11.0 26.5 10 -- 4.4 6.0 12.4 5.9 11.7 28.3 20 -- 4.9 6.7 13.9 6.7 13.2 32.0 50 -- 6.0 8.2 17.0 8.2 16.1 39.3 100 -- 7.0 9.6 19.9 9.6 18.9 46.5

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Figure 3.4: Shapingba annual maximum daily precipitation GEV distribution

C. Climate change impact on other climate variables

30. One of the objectives of the project is to develop the two logistics parks to be the ecological and environmental friendly logistics parks. The design of the project will incorporate the concepts of ecological logistics park development, based on the principles of ecological and environmental protection, energy saving, and green development. To support the ecological logistics park development, additional climate data and information, such as heat accumulation and solar radiation, are needed. The data and its associated climate change impact was analyzed as below.

31. No daily solar radiation data was available for Shapingba. Hence a baseline solar radiation data was derived from the Sky Surface Downward Flux from NASA Langley Research Center Atmospheric Science Data Center (http://eosweb.larc.nasa.gov/PRODOCS/srb/table_srb.html). The solar radiation is projected to increase slightly for all months (Figure 3.5). The heat accumulation above 10C base temperature of Shapingba was calculated from the daily minimum and maximum temperature for the period of 1951 to 2012. The result is shown in Figure 3.6. The annual heat accumulation varies from 3199 degree-days to 3752 degree-days. The annual average heat accumulation is 3435 degree-days. The climate change impact on the heat accumulation was assessed for each month. The Figure 3.7 shows the monthly normal heat accumulation and their future projections for the Shapingba site.

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20 Baseline 18 2050 projection

16 ) 2 2100 projection 14

8 6

(w/m radiaation Solar 4

0 1 2 3 4 5 6 7 8 9 10 11 12

Month Figure 3.5: Monthly normal solar radiation of Chongqing and future projections (W/m2).

The bar indicates the uncertainty range of the projection as defined in Table 2.

3800

day) 3700

3600

3500

3400

3300

3200

3100

(degree accumulation heat Annual

3000

1954 1957 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 1951 Year

Figure 3.6: The observed heat accumulation of Shapingba (degree-days)

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900

800 Baseline

700 2050 projection

days) - 600 2100 projection

500

400

300

200 Heat accumulation(degree 100

0 1 2 3 4 5 6 7 8 9 10 11 12

Month Figure 3.7: Monthly normal heat accumulation of Shapingba and future projections (degree-days).

The bar indicates the uncertainty range of the projection as defined in Table 2

IV. CLIMATE CHANGE IMPACT ON THE PROJECT AND IMPLICATIONS ON PROJECT DESIGN

32. To support the climate change risk and vulnerability assessment, the climate change information needs to be pertinent to the project components that are sensitive to the climate. As indicated in previous section, the project area is very likely becoming warmer in the future, which on the one hand is beneficial to the transport system because of the reduced frequency of fog and frost hence the risk of stoppage and damage to transport. On the other hand, an increased temperature implies intensified heat wave which may damage the road surface. Nevertheless, the temperature of the project area is very mild. The recorded highest temperature is 42.2°C for both Banan and Shapingba. With 6.4°C increase by 2100 as projected by the high scenario, the highest temperature will still be under 50°C, which should not have significant effects on pertinent project components.

33. In contrast to temperature, climate change impact on heavy rainfall such as storm event is much significant, and the heavy rainfall and it triggered flood pose a high risk to the project components, therefore should be the major climate hazard in the project design consideration. For the purpose of assessing climate change impact on river flood, it is necessary to develop a hydrologic model to reveal the relationship between rainfall and flood. The development of hydrological model for flood simulation is beyond the scope of this study. However, the enhanced heavy rainfall intensity of Shapingba indicated, in general, an increase in river flood risk.

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34. The urban flood is directly caused by the localized torrential rainfall, hence has good linear relationship with the local rainfall (Chongqing Hydraulic Bureau, 2006). As showing in Table 4, the intensity of 5 to 20 year return maximum daily rainfall will likely have 6% increase by 2050 projected by the mid scenario; with an uncertainty range between 4 to 12%. The projected 2100 increase is even larger; which is 12% of mid scenario, and an uncertainty range between 6 to 28%. The 5, 10 and 20 year return events are equivalent to the frequency of 20%, 10% and 5% respectively.

35. The design of ecological logistic park development needs to take the climate change impact on heat accumulation and solar radiation into account. The climate change impact on heat accumulation was analysed based on Shapingba observed historical daily temperature, while the climate change impact on solar radiation was analysed based on the solar radiation data derived from the Sky Surface Downward Flux from NASA Langley Research Center Atmospheric Science Data Center.

V. THE ADAPTATION OPTIONS

36. As discussed previously, flood is the major climate risk to the project. To avoid costly maintenance and/or business disruption in the future, the project should take the climate change impact induced additional flood risk into project design and construction consideration. In the following part, the adaptation options are discussed in two general categories.

37. “Hard” options: adjustments to design of relevant project components.

(i) River flood is main climate risk to the project, but detailed climate change vulnerability and assessment is beyond the scope of this study. However, a plan has been made by the CMG for both short and long term to protect the transport system and important industries, which including river channel dredging, embankment improvement and building reservoirs at the up-streams for flood water storage. There are 10 reservoirs in the plan, which has a total water storage capacity of 4.9 billion m3. The urban flood protection engineering is based on a 100 year return flood for both Shapingba and Banan Districts (Chongqing Hydraulic Bureau, 2006). Two of the planned reservoirs were constructed in 2015, another reservoir and significant river bank improvement programs are planned for 2016. (ii) The drainage system may need to be adjusted to a higher design standard. A conservative 6% increment of the sewage and drainage capacity is recommended, and a 10% increment for the critical components would be more appropriate, given the difficulty of repair and replacement of urban drainage system in the future. (iii) Stormwater Management and Rainwater Reuse. Conventionally the surface runoffs are collected through catch basins and discharges to the nearby rivers through stormwater drainage pipes. The practice changes the ecological condition and increases the flood level in downstream, and also pollute river. The common urban flooding in PRC cities during heavy rains is the direct result of this practice. The current acceptable practice for stormwater management is that project development should have little or no impact to the stormwater. This can be achieved by design and install stormwater management facilities such as infiltrations, detention ponds, rain water recycle and reuse, etc. The proposed

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project will include the stormwater management facilities to collect, store, recycle and reuse the stormwater so as to minimize the ecological impact for the stormwater (ADB 2015b). (iv) Eco-Logistics Park. The climate variables that may be related to the eco-logistic park design are solar radiation and heat accumulation. The solar radiation may increase slightly due to climate change, but the climate change impact on heat accumulation is much more significant. The baseline long term average heat accumulation of Shapingba is 3435 degree-days. The climate change impact projection is 12% increase by 2050 with the uncertainty range between 9% to 12%; and 25% increase by 2100, with the uncertainty range between 12% to 63%. When it becomes relevant, the design concept of eco-logistics park should take the heat accumulation change into consideration.

38. “Soft” measures: ecological solutions, institutional and technical capacity building to enhance risk awareness and ability for ongoing risk assessment & management, knowledge management to improve risk assessment as new information emerges. It is difficulty to rely completely on engineering measure in flood protection for Chongqing. For a foreseeable future, it is still necessary to adopt non-engineering measures to reduce the flood risk, including. There are a number of non-engineering measures in flood protection plan (Chongqing Hydraulic Bureau, 2006). All these measures will provide as effective adaptation to protect pertinent project components. The key measures include: (i) Integrated river channel management, restoring the ecosystem along the river banks and the river catchment to protect embankment; (ii) Making and completing the urban flood protection regulations; (iii) Strict enforcement of the regulation in managing the river channels; (iv) Developing and improving the flood early warning system; and (v) Setting up management levels for the buildings and other engineering construction along the river channels.

VI. CONCLUSION

39. This report produces quantitative climate change information relevant to the project by making use of the pattern scaling based GCM ensemble method. The advantage of the method is that it not only takes the key uncertainties in climate change science into future projection consideration, but also treats these key uncertainties independently. Therefore climate change projections and their associated uncertainty range can be produced consistently through combination of the different scenarios. A quantitative impact assessment can then be conducted by building the risk profile for the key vulnerable components, and targeted adaptation options can subsequently be identified and evaluated.

40. The biggest climate related risk to the project is river flood and urban flood caused by heavy rainfall. The climate change scenario analysis indicated an enhanced risk profile for both river and urban floods. Several adaptation options were identified and discussed.d

41. This study was constrained by a number of limitations:

(i) Detailed climate change impact on the river flood at Chongqing requires the development of hydrological model, which was not conducted in this study.

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(ii) The flood assessment was based on the hydrological information of Chongqing in general. No specific hydrological data is available for the two project sites. (iii) The urban flood assessment is built on daily rainfall observation of 08:00 to 08:00. For urban flood modelling and assessment normally requires sub-daily hydro-met observations, i.e., hourly time series data. Further study can be carried out when this information becomes available. (iv) The adaptation options discussed were presented as initial recommendations. Although the mid scenario may be used in supporting design adjustment or adaptation planning, some critical transport infrastructure may be required to sustain high climate risk; hence a projection developed on a higher change scenario may be needed. (v) No economic data was available to investigate the cost-benefit of implementing such adaptation options. However, we recommend selection of appropriate adaptations and/or their combination to be considered in project design wherever it is feasible.

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X. APPENDIX: PATTERN SCALING METHOD

Pattern scaling is \based on the theory that, firstly, a simple climate model can accurately represent the global responses of a GCM, even when the response is non-linear (Raper et al. 2001), and secondly, a wide range of climatic variables represented by a GCM are a linear function of the global annual mean temperature change represented by the same GCM at different spatial and/or temporal scales (Mitchell, 2003, Whetton et al. 2005). Pattern-scaling does not seem to be a very large source of error in constructing regional climate projections for extreme scenarios (Ruosteenoja, et al. 2007), however, in applying pattern-scaling, two fundamental sources of error related to its underlying theory need to be addressed: 1) Nonlinearity error: the local responses of climate variables, precipitation in particular, may not be inherently linear functions of the global mean temperature change; and 2) Noise due to the internal variability of the GCM. Pattern scaling may be described as follows: for a given climate variable V, its anomaly V for a particular grid cell (i), month (j) and year or period (y) under a forcing scenario (such as RCP4.5) can be expressed as: ∗ ∆� = ∆�� ∙ ∆�′ij T being the annual global mean temperature change.

The local change pattern value ∆�′ij was calculated from the GCM simulation anomaly

∆��ijusing linear least squares regression, that is, the slope of the fitted linear line.

� ∑ �= ∆��∆��ij ∆�′ij = 1 2 ( ∆��) ∑�=1

where m is the number of future sample periods used, from 2006-2100,19 periods in total. The average of 5 years represents a period. The pattern of solar radiation, relative humidity, as well as temperature and precipitation all use the same methodology.

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Table A-1: IPCC AR5 GCMs used in this scenario generation and their horizontal and vertical resolutions. Models with daily data available are used for extreme rainfall event scenario generation Resolution Model label (longitude° Daily Institution latitude°) Commonwealth Scientific and Industrial Research ACCESS1.0 1.8751.25 No Organisation/Bureau of Meteorology (CSIRO-BOM) Australia Commonwealth Scientific and Industrial Research ACCESS1.3 1.8751.25 Yes Organisation/Bureau of Meteorology (CSIRO-BOM) Australia BCC-CSM1.1 2.81252.8125 No Beijing Climate Center (BCC) PRC BCC-CSM1.1(m) 2.81252.8125 No Beijing Climate Center (BCC) PRC BNU-ESM 2.81252.8125 No Beijing Normal University (BNU) PRC Canadian Centre for Climate Modelling and CanESM2 Yes 2.81252.8125 Analysis (CCCma) Canada National Center for Atmospheric Research (NCAR) CCSM4 1.250.9375 Yes USA National Center for Atmospheric Research (NCAR) CESM1(BGC) 1.250.9375 Yes USA National Center for Atmospheric Research (NCAR) CESM1(CAM5) 1.250.9375 No USA Centro Euro-Mediterraneo sui Cambiamenti CMCC-CM Yes 0.750.75 Climatici (CMCC) Italy Centro Euro-Mediterraneo sui Cambiamenti CMCC-CMS Yes 1.8751.875 Climatici (CMCC) Italy Centre National de Recherches Météorologiques CNRM-CM5 Yes 1.41.4 (CNRM-CERFACS) France Commonwealth Scientific and Industrial Research CSIRO-Mk3.6.0 Yes 1.8751.875 Organisation (CSIRO) Australia EC-EARTH consortium published at Irish Centre for EC-EARTH 1.1251.125 No High-End Computing (ICHEC) Netherlands/Ireland Institute of Atmospheric Physics, Chinese Academy FGOALS-g2 2.81x1.66 No of Sciences(LSAG-CESS) PRC Institute of Atmospheric Physics, Chinese Academy FGOALS-s2 2.81x1.66 No of Sciences(LSAG-IAP) PRC Geophysical Fluid Dynamics Laboratory (GFDL) GFDL-CM3 2.5 × 2.0 No USA Geophysical Fluid Dynamics Laboratory (GFDL) GFDL-ESM2G 2.5x2.0 Yes USA Geophysical Fluid Dynamics Laboratory (GFDL) GFDL-ESM2M 2.5x2.0 Yes USA NASA Goddard Institute for Space Studies (NASA- GISS-E2-H 2.5×2×L40 No GISS) USA NASA Goddard Institute for Space Studies (NASA- GISS-E2-H-CC 2.5×2×L40 No GISS) USA NASA Goddard Institute for Space Studies (NASA- GISS-E2-R 2.5×2×L40 No GISS) USA GISS-E2-R-CC 2.5x2×L40 No NASA Goddard Institute for Space Studies (NASA-

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GISS) USA HadCM3 3.75x2.5 No Met Office Hadley Centre (MOHC) UK

National Institute of Meteorological Research, HadGEM2-AO 1.875 × 1.2413 No Korea Meteorological Administration (NIMR-KMA) South Korea HadGEM2-CC 1.875 × 1.2413 No Met Office Hadley Centre (MOHC) UK National Institute of Meteorological Research, HadGEM2-AO 1.875 × 1.2413 No Korea Meteorological Administration (NIMR-KMA) South Korea HadGEM2-CC 1.875 × 1.2413 No Met Office Hadley Centre (MOHC) UK HadGEM2-ES 1.875 × 1.2413 Yes Met Office Hadley Centre (MOHC) UK Russian Academy of Sciences, Institute of INM-CM4 2x1.5 Yes Numerical Mathematics (INM) Russia IPSL-CM5A-LR 3.75x1.875 Yes Institut Pierre Simon Laplace (IPSL) France IPSL-CM5A-MR 2.5x1.25874 Yes Institut Pierre Simon Laplace (IPSL) France IPSL-CM5B-LR 3.75x1.875 Yes Institut Pierre Simon Laplace (IPSL) France Atmosphere and Ocean Research Institute (The University of Tokyo), National Institute for MIROC-ESM Yes Environmental Studies, and Japan Agency for 2.8125x2.8125 Marine-Earth Science and Technology (MIROC) Japan Atmosphere and Ocean Research Institute (The University of Tokyo), National Institute for MIROC-ESM- Yes Environmental Studies, and Japan Agency for CHEM 2.8125x2.8125 Marine-Earth Science and Technology (MIROC) Japan Atmosphere and Ocean Research Institute (The University of Tokyo), National Institute for MIROC4h No Environmental Studies, and Japan Agency for 0.5625x0.5625 Marine-Earth Science and Technology (MIROC) Japan Atmosphere and Ocean Research Institute (The University of Tokyo), National Institute for MIROC5 1.40625 × Yes Environmental Studies, and Japan Agency for 1.40625 Marine-Earth Science and Technology (MIROC) Japan Max Planck Institute for Meteorology (MPI-M) MPI-ESM-LR 1.875x1.875 Yes Germany Max Planck Institute for Meteorology (MPI-M) MPI-ESM-MR 1.875 × 1.875 Yes Germany Meteorological Research Institute (MRI) MRI-CGCM3 1.125x1.125 Yes Japan Bjerknes Centre for Climate Research, Norwegian NorESM1-M 2.5x1.875 Yes Meteorological Institute (NCC) Norway Bjerknes Centre for Climate Research, Norwegian NorESM1-ME 2x2 No Meteorological Institute (NCC) Norway

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ADB 2010. Sustainable Transport Initiative: Operational Plan. (http://www.adb.org/documents/sustainable-transport-initiative-operational-plan) ADB 2015a. People’s Republic of China: Chongqing Integrated Logistics Demonstration - F1 Consulting Services, Technical Assistance Consultant’s Report, Interim Report. Vol.1 ADB 2015b. People’s Republic of China: Chongqing Integrated Logistics Demonstration - F1 Consulting Services, Technical Assistance Consultant’s Report, Interim Report. Vol.2 Chongqing Hydraulic Bureau 2006, The Urban Flood Protection Plan of the Chongqing City. Mitchell, T.D. 2003. Pattern Scaling: An Examination of the Accuracy of the Technique for Describing Future Climates. Climatic Change, 60(3), 217-242. 10.1023/a:1026035305597 Raper, S.C.B. Gregory, J.M., & Osborn, T.J. 2001. Use of an upwelling-diffusion energy balance climate model to simulate and diagnose A/OGCM results. Climate Dynamics, 17(8), 601-613. 10.1007/pl00007931. Reichler, T. and Kim, J 2008. How well do coupled models simulate present day mean climate? BAMS, March 2008 Ruosteenoja, K., Tuomenvirta, H., & Jylhä, K. 2007. GCM-based regional temperature and precipitation change estimates for Europe under four SRES scenarios applying a superensemble pattern-scaling method. Climatic Change, 81(0), 193-208. 10.1007/s10584-006- 9222-3. Whetton P.H., K.L. McInnes, R.N. Jones, K.J. Hennessy, R. Suppiah, C.M. Page, J. Bathols, and P.J. Durack, 2005. Australian Climate Change Projections for Impact Assessment and Policy Application: A Review. Climate Impact Group, CSIRO Marine and Atmospheric Research, Aspendale, Victoria, Australia. Ye W. and Y. Li, 2011. A method of applying daily GCM outputs in assessing climate change impact on multiple day extreme precipitation for Brisbane River Catchment, MODSIM11. In Chan, F., Marinova, D. and Anderssen, R.S. (eds) MODSIM2011, 19th International Congress on Modelling and Simulation. Modelling and Simulation Society of Australia and New Zealand, December 2011, pp. 3678-3683. ISBN: 978-0-9872143-1-7