Integrated Safeguards Data Sheet (ISDS) Section I - Basic Information Date ISDS Prepared/Updated: November 24, 2004 Report No.:AC 1054 A. Basic Profect Data A.l. Project Statistics Public Disclosure Authorized Country: China Project ID: P067828 GEF Focal Area: C-Climate change Global Supplemental JD: P067625 Project: Renewable Energy Scale-up Program TTL: Noureddine Berrah (CRESP) Total project cost (by component): Total project cost: US$: 1. Instituional Strengthening and Capacity Building $ 118.22 million 2. Support for Wind, Biomass and Small Hydro in Pilot Provinces $ 335.50 million 3. IDC and fees $7.40 million Appraisal Date: November 29, 2004 IBRD amount: $222.06 million GEF amount: $40.22 million Board Date: April 5. 2005 Other financing amounts by source: Borrower/recipient: $82.01 million

Public Disclosure Authorized Foreign private commercial: $116.83 million Managing Unit: EASEG Sector: Sub-national government administration (50%cg);Renewable energy (30%);Central government administration (20%) Lending Instrument: Adaptable Program Loan Is this project processed under OP 8.50 (Emergency recovery'? Yes? ] No'? [X] Environmental Category: B Safeguard classification S2 A.2. Project Objectives

The objective of China Renewable Energy Scale-up Program (CRESP) is to enable commercial renewable electricity suppliers to provide energy to the electricity market efficiently, cost-effectively and on a large scale. The first phase objective is to initiate a program of industrial development and capacity building and a sustainable large-scale contribution of renewable energy in four provinces. The global environment objective of the first phase is to develop and implement the legal and regulatory framework for an MMP Public Disclosure Authorized and support its effective implementation in four provinces.

A.3. Project Description

The first phase will consist of two components. The support of wind, small hydro and biomass component will consist of four sub projects: a 100 MW wind farm in Fujian; a 100 MW wind farm in Inner Mongolia a 24MW biomass power plant in Jiangsu and a part of the provincial small hydro new build and rehabilitation program in Zhejiang consisting of 18 individual sub-projects. The Institutional Development and Capacity Building component will provide support at the national and provincial level for the preparation, implementation and compliance with the proposed Renewable Energy Promotion Law and its associated regulations; and localization of manufacture, certification and testing of wind and biomass technologies.

Inivestmenit Component

Pingtan windfarm. The wind farm is being developed by China Long Yuan Power Group. (Long Yuan) which was selected to develop the wind farm under a bidding Public Disclosure Authorized procedure managed by Fujian provincial government based on supply price, which has been agreed at 48.6 fenlkWh. The wind farm wilL be owned and operated by Long Yuan as the majority shareholder with local developers holding minority stakes.

The project will support the construction, installation and commnissioning of wind turbines, associated civil and electrical works, including an extension of the existing control room, a switchyard, a 15 km, 110 kV transmission line from the wind farm to Beicuo, and the upgrading of the existing 110 kV substation there. The power of the individual turbines is expected to be in the range of 1.0 - 1.5MW, but their numbers, and hence precise layout of the wind farm are not yet fixed and will depend on which equipment supplier is chosen. The feasibility study is based on 67, 1.5MW wind turbines, considered to be the most likely configuration.

Huiitengxile windfarm. The Huitengxile wind farm is being developed by Inner Mongolia Wind Power Company (IMWPC) which is a state-owned enterprise, wholly-owned by Northern Union Power Company Limited (NUPC), a holding company owning a number of power generation companies in Inner Mongolia, especially in Western Inner Mongolia. The sponsor, IMWPC, was selected by the government of Inner Mongolia Autonomous Region to develop the wind farm; supply price is based on competitive bidding for another wind farm at the same site and has been agreed at 38.2 fen/kWh.

The Iluitengxile wind farm will consist of wind turbines, associated electrical and civil works including a substation, switchyard and control room; a 15 km. 110 kV transmission line to Desheng town; and upgrading of the existing 110 kV substation there. The capacity of the individual wind turbines will be in the range 1-2MW therefore their number and precise layout of the wind farm will depend on the product offered by the winning bidder.

Rudong biomass power plant. The project developer is Jiangsu Guo Xin Investment Group (Guo Xin). which will also be the majority shareholder of the project company with local developers as the minority shareholders.

The physical components of the project will consist of one l10tth high-temperature, high-pressure straw boiler and 24 MW steam turbine, straw storage and handling facilities, associated electrical works including the connection to the grid at a 22OkV substation via underground cable, and civil works including the upgrading of a 10 meter wide, 270 meter long access road. The proposed 24 MW straw power plant requires 176.000 tons of feedstock per year, while there are 900.000 tons of agriculture wastes arising each year within a radius of 25 km from the proposed project site. Consequently, ten stations will be set up in the vicinity of the project site (at Matang, Juegang, Dayu, Bingfeng. Fengli, Yangkou, Pincha, Chahe, Hekou and Shuangdian) for purchasing and storing straw.

Zhejiang small hydro projects. The component is to be managed by a project office to be set up by Zhejiang, which will be under a leading group established by Zhejiang provincial government. The PMO will be supported by the Zhejiang Hydro Power Development Management Center (ZIPDMC) which will provide additional capacity for the technical, procurement and safeguard aspects of the individual projects

Eighteen individual projects of up to 25MW have been selected based on criteria agreed in advance [to be confirmed at appraisal]. The province will make sub-loans to owners/developers of individual projects with guarantees from county governments [to be confirmed at appraisal]. It is expected that most owner/developers of rehabilitation sites will be the public sector (including the counties themselves) while most new build will be sponsored by the private sector. The beneficiaries are the sponsors and owners of individual hydro projects. Eleven plants will be rehabilitated with outputs of 34 MW, an incremental gain of 10 MW. The seven new build projects will have a total capacity of 74 MW.

Institutional Developmenrt and Capacity Buiilditng Component

The TA component is to be a single national program, implemented through the CRESP project management office (PMO), with activities designed to meet national priorities and the needs of the pilot provinces.

National level activities. At the national level, the TA component will support the implementation of the Renewable Energy Promotion Law now being prepared, through policy research, development of regulations, monitoring and evaluation of the impact of the law, and capacity building for its implementation. In addition, substantial funding will be provided for the localization of standard setting, testing, certification and manufacture of wind energy technology, methods and procedures. A strategy for the scaling up of the biomass industry will also be prepared and its implementation started. Pilot or demonstration projects may also be carried out under this component, which may for example include building-integrated photovoltaic electricity systems, or identification and preparation of sites for an off- shore wind demonstrations. Support for management of the TA program is also included under this sub- component.

Province level activities. At the province level, the TA component will support the ability of four selected pilot provinces (Fujian, Inner Mongolia, Jiangsu and Zhejiang) to implement the Renewable Energy Promotion Law. It will include assistance and capacity building for the development, implementation and enforcement of province level regulations, cost-shared support for pre-feasibility and feasibility studies, resource assessment, and assistance in developing further investment projects and programs.

A.4. Project Location and salient physical characteristics relevant to the safeguard analysis:

Pingtan Wind Farm

The wind farm is situated at Changjiang'ao, on the north-eastern end of Pingtan Island, some 100 km south east of Fuzhou, the capital of Fujian province which is on the eastern side of the Taiwan Strait. The island is 3-5 km from the mainland, across the Haitan Strait. The site is in a coastal plain formed between two chains of mountains, one to the north west and one to the southeast. The area is used as farmland, interspersed with low trees, and consists of light sandy soil. The trees are planted as wind breaks and help stabilize the soil against erosion and are specially selected non-native species. There is an existing 6MW wind farm on the same site, which has been operating for about 4 years, owned by Long Yuan (60%) and Putian Power Bureau (40%). An identified archaeological site falls within the perimeter of the wind farm but will not be disturbed by the construction work. The site does not contain human habitation but there are several villages on its perimeter.

Pingtan's 387.000 people have a per capita GNP which in 2002 was about $1048, about the median level for Fujian province. Of this about 35% is from agriculture, 13% from secondary industry and 52% from tertiary industries including remittances. The area for the proposed wind farm is representative: small villages, occupied for the most part by local farmers, although there are some who are not employed in agriculture. All are from the Han ethnic group. Many of the younger male population work on construction and other infrastructure projects outside the island, and so the local population is weighted towards older people and women. Land is mostly collectively owned but a state-owned forestry company is responsible for a large shelter plantation.

Huitengxile Winzd Farm

Huitengxile which is about 120 km east north east of Huhhot, the capital of Inner Mongolia Autonomous Region. Its latitude and longitude are 4109' north and 112'32' east. The area has space sufficient for an estimated 1,000MW, on which about 47 MW of wind has already been developed, by IMWPC with a further 22MW under construction and a further concession of OOMW under development. The long term annual mean wind speed has been estimated at 8.4 m/s at 40 m above ground level. The site elevation is approximately 2100 m above sea level and consists of slightly rolling grassland, used for grazing. It is owned by the county through a stud farm.

Wulanchabu county has a population of about 215,000 spread over 4,200 sq km. In 2003, per capita income was $641, but rural people's income was considerably lower, at $206. The wind farm is entirely situated on the land of the Huitengxile stud, which employs 131 people. A total of 264 people live on the farm, which has an area of 29,000 ha. The area of the wind farm is representative of Inner Mongolia with sparse population relying mainly on animal husbandry, in this case horses and sheep. Population in the area is dominated by people from the Han ethnic group. Jiangsu Biornass Power Plant

The straw-fired power plant would be located in Mabei Village, Matang Town in Rudong County. Nantong Municipality about 400 km east of Nanjing, the capital of Jiangsu. It would occupy a site of about 21 hectares, including straw storage and ash deposit areas. The site is currently mainly paddy field and mulberry garden and is clear of houses. The straw purchase and storage stations will use the existing state- owned cotton purchase stations by lease or transfer. Transport of feedstock to the power plant would be by road and waterway from a radius of up to 25km from the power plant.

Although Rudong County is predominantly rural, with 75% of its inhabitants being employed in agriculture and a net income of $460 per capita in 2003, Mabei Village is more developed. Surveys in the project area indicate per capita net income was about $530 in 2003 and about 68% of people earned their living from secondary and tertiary industry. Only 28% of income was from agricultural activities. Land is largely collectively owned.

Zhejiatg Small Hydro Project

The Zhejiang sub-component will take place entirely within the boundaries of Zhejiang province with work taking place on 18 sub-projects and 40 different sites in five cities (Quzhou, Jinhua, Lishui, Huzhou and Tazhou) and 11 districts of which eight are considered by the province to be less developed. The sites are largely in mountainous areas.

The province had a total population of 45 million in 2002. with an annual growth rate of 3.8%. Urban income is among the highest in China, at $1,415 per capita in 2002 while rural residents are also comparatively well off with an income of $597 per capita, also in 2002. Power shortages are a major constraint on growth and demand is growing by up to 17% per year.

|B. Check Environmental Categor A [ 1B [XI, C Fl]FI

|Commineitts: |C. Safegulard Policies Trigered

Yes No Environr ental Assessment(PJ3PP 4.01.6} lX Natural oabitats (QP/BP 4.04) [X] Pest Manage~men O . I [XI Cultujral Property (draft OP 4.1 1 - OPN H1.03-) l [ XI Involuntary Resettlement QOP/J3P 4.12) [XI [ I Indigenous Peoples (09....D....4.20l .. 1 [ XI F;orests (QP/LP 4.36) [][XI Safety of DJams (gP/RB 4.37) [][XI Projects in Disputed Areas (0P/BP1GP 7.60) [1 [X] Projects on International Waterways (OP/BP/GP 7.50) [] [X]

By supporting the proposed project, the Bank does not intend to prejudice thefinal determinationof the parties' claims on the disputed areas |Section II - Key Safeguard Issues and Their Management 1.D Summary of Key Safeguard Issues. D. 1. I}escribe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts.

Environmental and social impact analysis has been carried out for each of the investment sub-projects and is presented in an environmental impact analysis (EIA) and resettlement action plan (RAP) other than Zhejiang, for which a policy framework has been prepared. The analysis has reviewed the project and the site, and identified the main impacts during construction and operation. Project alternatives have been compared. Participatory and awareness raising techniques have been employed during the process of preparing the ElAs and RAPs.

Pingtan Wind Farml

Potential local environment impacts during construction will be noise, dust, vehicular movement. excavation and movement of spoil, temporary vegetation loss and the effects of a small workforce being located on the site. Potential impacts associated with the transmission line routing are expected to be minor and will be evaluated in detail at appraisal. Construction duration is expected to be 24 months. Impacts and mitigation are as follows: * Noise. Some construction noise is expected to exceed 6OdBa (the standard for urban noise) in some nearby villages but will be temporary and reversible. Construction noise will be limited in areas near habitation by the use of machines meeting noise emission standards and by limiting construction to the day time. * Dust and vehicular movement will occur but is not expected to have a significant impact in the surrounding villages. Movement of spoil will be within the site and there is no net surplus of spoil requiring disposal. * Some of the shelter trees will be cut down on the permanently acquired land and some of the temporarily acquired land. Lost trees will be replanted on temporarily acquired land. * It is possible that a hitherto uncatalogued archaeological site will be uncovered during construction. Chance find procedures have been identified in the EIA.

During operation, potential impacts will be noise, visual and potential bird strike. Impacts and mitigation are as follows: * Noise levels have been examined quantitatively. With the original turbine layout design, three villages were identified as potentially having their nighttime background noise level being raised above the standard of 5OdBa and two (of the same three) having their daytime background noise being raised above the standard of 6OdBa. Layout adjustments proposed in the EIA bring all sensitive sites below the standard. * Visual impact will result from the presence of the turbines and other installations. This is partially mitigated by the presence of trees, but also appears to be of no importance to locals, based on their responses to surveys. In other areas of China, wind farms have become tourist or educational attractions. * The site does not lie on a migratory bird route or is a migratory habitat. There are no rare or protected species at the site and so potential impacts are expected to be minimal.

Permanent land acquisition includes land for wind machines. roads and substations, totaling 31.6 hectares, of which rural collective land is 26.3 hectares, and 5.3 hectares is state-owned shelter plantation. 0.3 hectares is required for the 1 lOkV line, predominantly rural collective land. A further 28.6 hectares will be required for temporary purposes during construction, of which 23.1 hectares will be agricultural land and 5.5 hectares will be shelter plantation. Thirty one households and 147 people are affected, with none needing relocation or losing more than 4.3% of its income from land that is requisitioned. Compensation rates are determined by local regulations and a grievance procedure is in place. Huitengxile Wind Farm

Potential local environment impacts during construction will be primarily loss of grassland. Potential impacts associated with the transmission line routing are expected to be minor and will be evaluated in detail at appraisal. To mitigate the grassland loss, the following mitigation measures are proposed:

* Soil and rocks will be removed manually; * Machinery and equipment will be confined to designated places; * Vehicles will run on specified roads and not on grassland; * About half of the soil removed during construction will be backfilled into the wind turbine foundation and the remaining spoil will be removed to a designated site; * After completion of the construction, both sides of the roads will be afforested.

During operation, potential impacts will be noise, visual impacts, bird strike, and electromagnetic radiation. Impacts and mitigation are as follows:

* The noise level of wind turbines is projected to be about 90 dBa at the machines. The nearest residential area is 3km away, and the operators will primarily work in the control room, limiting noise impact. * The site is not a route for migrant birds. Based on the experience of operating the existing wind farms, operation of the wind farm is not expected to have impacts on indigenous species. * Local residents believe that wind farm operation adds to the landscape. The local authorities plan to use the wind farm as a tourist attraction, as are the existing ones. * The intensity of the electromagnetic radiation during wind farm operation is expected to be much lower than the standard, resulting in no negative impacts on human health. The survey with local residents showed that existing wind farm operations do not interfere with local radio and television.

Permanent land acquisition includes land for wind machines, roads and substations totaling 23.7 hectares, 0.4 hectares is required for the 110kV line, and a further 15.3 hectares is required for temporary purposes during construction. All these land areas are grassland owned by Huitengxile State Farm, which has 130 staff. No individual farmer will be affected, nor are there indigenous people living in the State Farm. All compensation will be paid to the State Farm, at the rates determined by local regulations and are adequate, and a grievance procedure is in place. Since the wind farm will occupy less than 1% of the land areas of the State Farm, it will have little impact on its economic operations.

Inner Mongolia Electric Power Survey and Design Institute prepared the EIA and RAP, which have been reviewed and revised to meet Bank's standards. Wulanchabu Environment Research Institute will be responsible for implementing the EMP.

The key stakeholders for the wind farm are the national, Inner Mongolia (provincial) and Wulanchabu (county) government, the project sponsors, the provincial power company (which will purchase the power), and local communities. The project sponsors and county government solicited opinions from people in the affected areas and the State Farm. During preparation of the EIA and RAP there have been extensive local consultations, including meetings and surveys in the surrounding villages. The results demonstrated that local communities are quite supportive of the wind farm, which they believe will create local employment opportunities and tourist attractions. The villagers, however, emphasized the need to protect grassland. Their concerns have been taken into account in project design and implementation.

Rudong Biomass Power Plant

Potential local environment impacts during construction will be noise, dust and vehicular movement (and associated air pollution) and the effects of a small workforce being located at the site. * Noise. Some construction noise is expected to reach 66dBa (the standard for urban noise is 6OdBa)at the site boundary. Construction noise will be limited in areas near habitation by the use of machines meeting noise emission standards and by limiting construction to the day time. * Dust resulting from excavation and movement of spoil will be within the site and will be piled and covered. Construction areas will be screened. Air pollution from construction vehicles is expected to be minor * Potential impacts on water during construction are expected to be minor and confined to use for living purposes and potential run off from the site. Mitigation is to confine and treat wastewater and minimize runoff. * It is possible that a hitherto uncatalogued archaeological site will be uncovered during construction. Chance find procedures will be included in the environment management plan.

Potential impacts during operation will be from noise, atmospheric emissions, water use and transport of biomass fuel into the plant and ash out of it. There is an increased fire hazard resulting from the storage of large quanties of straw. * Noise. Main noise producing equipment will be placed at the center of the site, as far from the site boundary as possible and will be insulated where possible. Within the plant, control rooms will be insulated to protect the staff. Predicted noise at the site boundary is expected to meet day- and nighttime standards. * Atmospheric emissions. Atmospheric emissions of SO2 , NO, and particulates resulting from combustion will be within permitted levels and will be emitted through a 100 meter high stack. * Water use. Likely water pollution will stem from water treatment (for boiler feedwater), oily residue, and sewage. Heavy metal anti-fouling agents will not be used in cooling tower water. Treated water will be disposed of to the Mafeng river. Treated sewage will be used for irrigation. * Transport of fuel and ash. Biomass will be moved into the plant by road and river. Impacts are increased traffic, accident hazard and some vehicular pollution. Ash will be transported out of the plant for agricultural fertilizer by road. Procedures for road traffic safety and to reduce the hazards from the load are required. * Fire hazard. Storage of large quantities of biomass increase the fire hazard through deliberate, accidental or spontaneous means. Extensive fire protection equipment is included in the feasibility study, an emergency response group is to be included in the staffing of the plant.

Land from Mabei Village will be acquired for the project, totaling [21 hectares (including 5.1 hectares of paddy field, 1.8 hectares of mulberry garden, and 0.1 hectare of construction land]. In addition, 30 tombs will be relocated. A total of 91 people from 25 households are affected by the project, with an average loss of 30-36% of their land.

Zhejiang Small Hydro

The Zhejiang small hydro investment component consists of eleven newly-built and seven rehabilitation small hydro sub-projects. The Bank and the provincial government have reached an agreement on a framework approach that sets up the criteria and procedures for meeting the safeguards and fiduciary requirements for the small hydro projects. The Provincial Project Office (PPO), staffed by Zhejiang Hydro Power Development Management Center (ZHPDMC) has prepared a framework EIA and RAP, which have been reviewed and revised to meet Bank's satisfaction.

EIA Framework. Each sub-project should prepare its EIA in accordance with the agreed upon framework, which defines the contents, procedures and implementation responsibilities. The purpose is to ensure that the EIA of each sub-project will be in compliance with both the Chinese laws and regulations and the procedures required for Category B projects in the World Bank's OP/ BP 4.01.

Project screening. The sub-project company is responsible for preparing initial EIA. Based on GoC's regulation, EIA is required for all newly-constructed sub-projects. EMPs will be based on the draft ElAs. The framework has defined the project screening criteria.

Sub-project ElAs. The EIA of each sub-project should comply with the Chinese regulations on "Code for Environmental Impact Assessment of Water Conservancy and Hydropower Project" HJ/T88-2003. The framework outlined an EMP format on environmental mitigation, supervision, and monitoring plans for both newly-built and rehabilitation projects.

For newly-built small hydro projects (under 25 MW), potential local environment impacts during construction may be waste water, solid wastes, noise, dust, and soil erosion. Potential impacts during operation include land occupation and losses from reservoir inundation, noise, sewage, low temperature water irrigation, and decreased water flow downstream. Sponsors will be required to prepare an EIA and EMP.

For rehabilitation projects, potential local environmental impacts during construction will be impacts on the consumers with lower water supply during reconstruction, waste water, solid wastes, noise, dust, and soil erosion. Potential impacts during operation include noise, and land losses from increased reservoir inundation. ponsors will be required to prepare an EIA and EMP.

EIA Review, Approval, and Disclosuire. The PPO will be responsible for approving the EMPs. After being revised incorporating recommendations from the public consultation process, the EMPs will be submitted to the provincial project office for approval. The countylcity/district project office is responsible for disclosing the approved EMP in the affected residential areas of the project or in the nearby villages.

RAP Framework. Each sub-project will prepare its RAP in accordance with this framework, which defines resettlement principles, implementing institutions and resettlement standards. The purpose is to ensure RAP of each subproject consistent with the Chinese laws and regulations as well as the requirements set in OP/BP4.12 of the World Bank.

Project screening. The resettlement survey will be organized jointly by the county/city/district project office and the design unit. The project company, the county department for resettlement and other relevant functional departments, township (town) people's government, representatives of villages and groups, resettlers and property owners all should participate and jointly develop the project resettlement investigation materials.

The Provincial Project Office decides whether an RAP is required based on the resettlement survey results and agreed upon criteria. If there are more than people subject to resettlement under the subproject an RAP must be prepared. For newly-constructed projects. if there are no relocations, or fewer than 10 people need relocation, a simplified RAP is required. For rehabilitation projects, if there are no relocations (including laid-off employees) and land acquisition, there is no need to prepare RAP. The framework gives an RAP format for each sub-project to follow.

According to preliminary surveys, all the sub-projects of this project involve no households being moved, but only land acquisition.

Resettlemtient standards and compensation criteria. The design and construction of each sub-project should be consistent with the Chinese legislation for land acquisition compensation and resettlement. The compensation criteria and calculation method for affected areas and people (including land and property, etc.) are set out in the legal framework, which is demonstrated in the framework.

Public Consultation. Both EIA and RAP frameworks outlined the requirements for public consultation and disclosure. The environment divisions and resettlement team of the county/city/district project office are responsible for notifying, organizing, carrying out, and recording public consultations, in accordance with the criteria and procedure outlined in the frameworks.

Dam Safety. For both new and rehabilitated projects, the Dam Safety safeguard policy (OP/BP 4.37) may be triggered. The framework requires that the measures set out in OP/BP 4.37 (safety inspections by an independent panel) should be met when appropriate. Prior review will be required for those projects which trigger OP 4.37 [to be confirmed at appraisal].

D.2 Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area.

Pingtan Wind Farm

None expected.

Huitengxile Wind Farm

Further wind farms are expected to be built in the area of the project, under other developers and financing arrangements.

Rudong Biornass Power Plant

It is possible that the biomass power plant will be replicated at the same site, in which case similar impacts adding to those described above could be expected.

Z;hejiang Sinall Hydro

None expected. D.3. Describe the treatment of alternatives (if relevant)

Various options for assisting further development of renewable energy in China were considered. Further investment activities following on from the successful pilot scale investment in wind under Renewable Energy Development Project (REDP Loan 4488-CHA were considered, but these alone would not overcome the barriers to broadening participation nor the inherent bias against renewable energy generation common to utility systems. A GEF supported comprehensive economic and sector work (ESW)-only activity designed to introduce the necessary laws and regulations was also considered but rejected on the basis that experience in China on implementation has been mixed and that support for effective implementation, enforcement and investment would be needed. A program consisting mainly of technical assistance, with limited investment support was originally contemplated and pursued, but after the commitment of the GoC to embark on a large scale development of renewable energy, it became evident that need for investments will require strong support from both public and private sectors and the catalytic effect of Bank financing was considered to be essential to the success of the project.

CRESP is underpinned by analysis which establishes that renewable energy can be the least economic cost solution for power production in China when environmental externalities are taken into consideration. The projects are intended to demonstrate the scale up of renewables and their economic and environmental advantages over coal-fired electricity generation.

For this pilot phase, the government wished to select a limited number of provinces with good renewable energy resources and interest in developing them. At the same time the government is interested in promoting those technologies which are at or approaching economic least cost for electricity generation. A rigorous selection process which examined all 32 provinces and autonomous regions, resulted in the selection of the four pilot provinces: Fujian, Inner Mongolia, Jiangsu and Zhejiang not only for their interest in the project but also for the range of technologies that could be piloted (projects in Inner Mongolia and Zhejiang are under consideration for investment in a separate operation).

Several other sites were considered by both provinces but rejected on grounds of resource availability and site suitability. Sites chosen have been selected as the most promising for demonstration at this time.

D.4. Describe measures taken by the borrower to address safeguard issues. Provide an assessment of borrower capacity to plan and implement the measures described.

The Borrower has provided EIAs and RAPs as follows: Pingtan windfarm. Environment Impact Assessment for Phase II Project of Changjiang'ao Wind Power Field in Pingtan of Fujian prepared by East China Investigation and Design Institution, dated June 2004. It includes an environment management plan (EMP) which has been reviewed for acceptability to the Bank. A Resettlement Action Plan for Pingtan Changjiang'ao Wind Power Farm Project prepared by the Preparatory Office for Pingtan Changjiang'ao Wind Power Farm and East China Investigation and Design Institution dated June 2004 has also been submitted. Borrower capacity to plan and implement the measures is considered acceptable.

Huitetgxile wind farm. An Environment Impact Assessment for 100MW Wind Power Project in Inner Mongolia prepared by the Institute of Power Exploration and Design of Inner Mongolia dated June 2004, which includes an EMP which has been reviewed for acceptability to the Bank. A Resettlement Action Plan for 100MW Wind Power Project in Inner Mongolia prepared by the Institute of Power Exploration and Design of Inner Mongolia dated June 2004 (November version) has been submitted. Borrower capacity to plan and implement the measures is considered acceptable.

Rudonig biomass power plantt An Environment Impact Assessment and Environment Management Plan for Biomass Plant from Straw Combustion prepared by Nanjing Lark World Environment Technology Engineering Co. Ltd dated October 2004. The EMP has been reviewed for acceptability to the Bank. A Resettlement Action Plan for Jiangsu Rudong Straw-fired Power Project prepared by Jiangsu Rudong New Energy Project Office and East China Investigation and Design Institution dated July 2004 has also been received. Borrower capacity to plan and implement the measures is considered acceptable.

Zlzefiang small hydro. An Environment Impact Assessment Framework and Resettlement Action Plan Framework, prepared by Zhejiang Hydropower Development Management Center and submitted to the Bank in November 2004. A training plan for environment administration personnel was submitted at the same time. Borrower capacity to plan and implement the measures is considered acceptable.

D.5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people.

Pinigtan Wind Farm

The key stakeholders for the wind farm are the national, Fujian (provincial) and Pingtan (county) government, the project sponsors, the provincial power company (which will purchase the power), and local communities. Before preparation of the project began, the project sponsors solicited opinions from people in the affected townships and the state-owned shelter plantation firm. County government also discussed the proposal with staff from provincial bureaus of land administration, forest, environment and power supply. During preparation of the EIA and RAP there have been extensive local consultations, including surveys in the surrounding villages.

As part of preparation of the EIA, the meetings have been held on the project's impacts, information has been released to the news media and the draft EIA has been displayed for comment in the Pingtan County government offices.

The sponsor has met township and village leaders and representatives of project affected people. Project affected villagers have participated in the preparation of the RAP and are expected to continue to participate in its implementation. A grievance process has been established. Notices of the project have been displayed in the Pingtan County government offices.

Huitengxdle Wind Farn

The key stakeholders for the wind farm are the national, Inner Mongolia (provincial) and Wulanchabu (county) government, the project sponsors, the provincial power company (which will purchase the power), and local communities. The project sponsors and county government solicited opinions from people in the affected areas and the State Farm. During preparation of the EIA and RAP there have been extensive local consultations, including meetings and surveys in the surrounding villages. The results demonstrated that local communities are quite supportive of the wind farm, which they believe will create local employment opportunities and tourist attractions. The villagers, however, emphasized the need to protect grassland. Their concerns have been taken into account in project design and implementation.

Rudong Biomass Power Plant

The k-ey stakeholders for the biomass power plant are the national, Jiangsu, (provincial) and Rudong (county) government, the project sponsors, the provincial power company (which will purchase the power), and local communities. The sponsors have encouraged local participation through meetings, surveys and public awareness initiatives, including using television and radio. During site selection and design, project sponsors and the Rudong County government have met township and village heads and village representatives. Relevant departments of local government have also been consulted.

In preparation of the EIA. meetings and a survey were undertaken covering local institutions (schools, hospitals etc) local government departments (irrigation and environment) and the village committees. Their views have been recorded and responses provided.

Local government, towns, villages and villagers have participated in the RAP process. A survey has been carried out. It is intended that a resettlement information booklet will be prepared and that further meetings will be held. A feedback and grievance procedure have been established.

Zhejiang Small Hydro

Key stakeholders vary from project to project but will normally consist of local land holders and users, particularly those standing to lose use of land or other property, users of the water resource, and local and provincial government, The EIA and RAP frameworks require identification and consultation with the affected parties, and public disclosure of both the framework and the resulting EIAs and RAPs. F. Disclosure Requirements Date Environmental AssessmentlAudit/Management Plan/Other: Date of receipt by the Bank 10/26/2004 (Fujian), 11/26/2004 (Inner Mongolia) 11/02/2004 (Jiangsu), 11/15/2004 (Zhejiang - framework only) Date of "in-country" disclosure 10/26/2004 (Fujian), 10/31/2004 (Inner Mongolia) 11/15/2004 (Jiangsu), 11/22/2004 (Zhejiang - framework only) Date of submission to InfoShop 11/24/2004 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Not Applicable Resettlement Action Plan/Framework/PolicyProcess: Date of receipt by the Bank 10/26/2004 (Fujian), 11/26/2004 (Inner Mongolia) 11/02/2004 (Jiangsu), 11/15/2004 (Zhejiang - framework only) Date of "in-country" disclosure 10/26/2004 (Fujian), 10/31/2004 (Inner Mongolia) 11/15/2004 (Jiangsu), 11/22/2004 (Zhejiang - framework only) Date of submission to InfoShop 11/24/2004 Indigenous Peoples Development PlanIFramework: Date of receipt by the Bank Not Applicable Date of "in-country" disclosure Not Applicable Date of submission to InfoShop Not Applicable Pest Maniagement Plan: Date of receipt by the Bank Not Applicable Date of "in-country" disclosure Not Applicable Date of submission to InfoShop Not Applicable Dam Safety Managemen t Plan: Date of receipt by the Bank 11/15/2004 (Zhejiang only)l Date of "Cin-country"' disclosure 11/2212004 Date of submission to InfoShop 11/2412004 If in-country disclosure of any of the above docurnents is not expected, please explain why.

Dam safety management plans may be required for sub-projects under the Zhejiang small hydro sub- component. Requirements will be assessed based on the policy framework and requirements of OP4.37 including disclosure followed accordingly.

Section III - Compliance Monitoring Indicators at the Corporate Level (To be filled in when the ISDS is finalized by the project decision meeting) OP/BP 4.01 - Environment Assessment: Yes No Does the project require a stand-alone EA (including EMP) report? X If yes, then did the Rtegional Environment Unit review and approve the EA X report? Are the cost and the accountabilities for the EMP incorporated in the

OPJIBP4.04,- Natural Habitats: Yes No l Would the project result in any significant conversion or degradation of critical X natural habitats? If the project would result in significant conversion or degradation of other (non- critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP 4.09 - Pest Management: Yes No Does the EA adequately address the pest management issues? n/a Is a separate PM? required? X If yes, are PMP requirements included in project design? Draft OP 4.11 (OPN 11.03) - Cultural Property: Yes No Does the EA include adequate measures? X Does the credit/loan incorporate mechanisms to mitigate the potential adverse | impacts on physical cultural resources? OD 4.20 - Indigenous Peoples: Yes No Has a separate indigenous people development plan been prepared in | consultation with the Indigenous People? If yes, then did the Regional Social Development Unit review and approve the plan? If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit? OP/BP 4.12 - Involuntary Resettlement: Yes No Has a resettlement action plan, policy framework or policy process been X prepared? If yes, then did the Regional Social Development Unit review and approve the X plan / policy framework / policy process? OP/BP 4.36- Forests: Yes No Has the sector-wide analysis of policy and institutional issues and constraints r/a been carried out? Does the project design include satisfactory measures to overcome these constraints'? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? OP/BP 4.37 - Safety of Dams: Yes No Have dam safety plans been prepared? X Have the TORs as well as composition for the independent Panel of Experts X (POE) been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements X been made for public awareness and training? OP 7.50 - Projects on InternationalWaterways: Yes No Have the other riparians been notified of the project? n/a If the project falls under one of the exceptions to the notification requirement, then has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: Has the RVP approved such an exception? OP 7.60 - Projects in Disputed Areas: Yes No Has the memo conveying all pertinent information on the international aspects of the project, including the procedures to be followed, and theh recommendations for dealing with the issue, been prepared, cleared with the r a Legal Department and sent to the RVP? Does the PAD/MOP include the standard disclaimer referred to in the OP? BP 17.50 - Public Disclosure: Yes No Have relevant safeguard policies documents been sent to the World Bank's [TBC] Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups [TBCJ and local NGOs? A_l Safeguard Policies: YN Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of the safeguard measures? Have safeguard measures costs been included in project cost? X Will the safeguard measures costs be funded as part of project implementation'? X Does the Monitoring and Evaluation system of the project include the X monitoring of safeguard impacts and measures? Have satisfactory implementation arrangements been agreed with the borrower [TBC] and the same been adequately reflected in the project legal documents? Signted and submitted by: Name Date Task Team Leader: No Mt- B 24-°

Project Safeguards Specialist 1: Bernie Baratz

Project Safeguards Specialist 2: Zhu Youxuan

11/24/2004

Approved by: Name Date Regional Safeguards Coordinator: Glenn S. Morgan

Not applicable - Delegated project

Comments: Sector Manager: Junhui Wu GSA 11/24/2004

Comments: