The World Bank Mining Area Rehabilitation Project (P133000)

REPORT NO.: RES38447 Public Disclosure Authorized

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF HUAINAN MINING AREA REHABILITATION PROJECT APPROVED ON MAY 11, 2015 TO Public Disclosure Authorized THE PEOPLE'S REPUBLIC OF

URBAN, RESILIENCE AND LAND

EAST ASIA AND PACIFIC Public Disclosure Authorized

Regional Vice President: Victoria Kwakwa Country Director: Martin Raiser Regional Director: Benoit Bosquet Practice Manager/Manager: Francis Ghesquiere Task Team Leader: Minghe Tao Public Disclosure Authorized The World Bank Huainan Mining Area Rehabilitation Project (P133000)

ABBREVIATIONS AND ACRONYMS

EIRR Economic Internal Rate of Return ESMP Environmental and Social Management Plan HAWIC Huainan Agriculture and Water Investment Company HMCC Huainan Municipality Construction Commission HMCMSMO Huainan Municipality Coal Mining Subsidence Management Office HMDRC Huainan Municipality Development Reform Commission HMG Huainan Municipal Government HMUMB Huainan Municipality Urban Management Bureau IBRD International Bank for Reconstruction and Development PDO Project Development Objective PIA Project Implementing Agency PMO Project Management Office RAP Resettlement Action Plan The World Bank Huainan Mining Area Rehabilitation Project (P133000)

BASIC DATA

Product Information

Project ID Financing Instrument P133000 Investment Project Financing

Original EA Category Current EA Category Full Assessment (A) Full Assessment (A)

Approval Date Current Closing Date 11-May-2015 30-Jun-2021

Organizations

Borrower Responsible Agency People's Republic of China Huainan Project Management Office

Project Development Objective (PDO) Original PDO The project development objective is to remediate and create a public space at the JiuDa mining site in Huainan city.

OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed

IBRD-85120 11-May-2015 23-Jun-2015 16-Sep-2015 30-Jun-2021 100.00 34.00 66.00

Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)? No

The World Bank Huainan Mining Area Rehabilitation Project (P133000)

I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

A. Background

1. A US$100 million IBRD Loan for the Huainan Mining Area Rehabilitation Project (‘the project’) was approved on May 11, 2015 and became effective on September 16, 2015. The project development objective (PDO) is to remediate and create a public space at the JiuDa mining site in Huainan city. The project consists of three components, namely: (a) Environmental Remediation and Water Management (US$89.52 million, including counterpart funds); (b) Infrastructure Improvement and Site Utilization (US$39.71 million); and (c) Capacity Building and Technical Assistance (US$18.48 million). This is the first project restructuring.

B. Project Status

2. Overall Implementation Status and Achievements to-date. Progress towards achieving the PDO is rated Moderately Unsatisfactory and Implementation Progress is rated Unsatisfactory since February 2019, mainly due to slow implementation progress caused by land acquisition delays and changed government priorities for several investments under components 1 and 2 (see below). The scale of land acquisition was underestimated at appraisal: it was expected to be at a scale of 184.59 Ha (2,768.9 mu). However, during implementation, land acquisition was found to be at a scale of 766.32 Ha (11,494.74 mu). This caused land planning and approval delays, exacerbated by shortage of counterpart funds due to a lower demand for coal, which is an important revenue source for the city. At the Mid-Term Review Mission in October 2018, the Huainan Municipal Government (HMG) and local leaders showed their commitment to resolving the pending land acquisition and resettlement issues by designating government leaders to coordinate land acquisition and allocating the necessary counterpart funds. The Project Management Office (PMO) has also been committed to submitting monthly land acquisition and resettlement progress reports to the World Bank until all land acquisition and resettlement works are completed. During the past few months, good progress has been made in land acquisition, with about 505.96 Ha (7,589.45 mu) of land acquired, representing about 66% of the total area. The project has disbursed US$34.55 million as of August 18, 2020 (34.55% of the Loan). Although the disbursement rate is lower than the original schedule, it is expected to pick up by the end of calendar year 2020 as issues relating to land acquisition will have been addressed in full and physical implementation would be advanced as a result. Other reasons for the low disbursement rate are overestimated project costs, with contract prices at 50% of the cost estimate averagely, and investments which were not initiated due to changed government priorities.

3. The PDO remains relevant to the World Bank Group’s Country Partnership Framework for China FY2020-2025 (Report No. 117875-CN), namely promoting greener growth for the engagement areas 2.1: Facilitating transition to a low-carbon energy path and 2.2: Reducing air, soil, water, and marine plastic pollution. It is also in line with the new national strategy “National Sustainable Development Planning for Resource-Based Cities (2013-2020)”, where Huainan city was selected as the first city to pilot ecological transformation in the context of resource- exhausted cities - an extremely pressing subject in China. However, the strategy calls for market-driven creation of public space from remediated land rather than government-led action. Therefore, several project activities will be adjusted in this restructuring.

4. Implementation Status by Component. The status of implementation under each component is as follows:

5. Component 1: Environmental Remediation and Water Management. The component supports remediation and preservation of the overall environment at the former JiuDa mining site by cleaning it up, controlling the pollution The World Bank Huainan Mining Area Rehabilitation Project (P133000)

sources, improving the drainage system, and carrying out vegetation remediation and landscaping actions. Expected results are: (i) 410 Ha (6,150 mu) land remediated with improved vegetation coverage; (ii) 8,400 m3 leachate collected and treated for safe disposal; and (iii) 9.0 km2 area protected against 1/30-year floods.

6. Status. Environmental remediation of Zone 3-1 was not launched and will be cancelled through this restructuring since this area has presented land acquisition challenges and the shortage in counterpart funds. The remediation of this area will be carried out as part of the government’s future environment improvement plan. Consequently, as of June 15, 2020, there are: (i) 263 Ha (3,945 mu) land remediated with improved vegetation coverage (64% of the final target); (ii) 350 m3 leachate collected and treated annually for safe disposal (much below the original target of 8400m3 , which was over estimated at appraisal based on an assumption for conventional landfill); and (iii) 6.0 km2 area protected against 1/30 year floods (66.6% of the final target). These results have supported the closing of a 94.9 Ha dumpsite, exceeding the final target of 39 Ha; and have led to the improvement of surface water quality as planned.

7. Component 2: Infrastructure Improvement and Site Utilization. The component supports (i) construction of 4 roads (Zhongxing, Yanshan, Wanxiang, and Jiukong roads) and associated urban infrastructure service facilities, which are to be used by different income level groups for better connectivity and access to the project area; and (ii) development and establishment of a flower market, tree nurseries, bonsai area, and visitor centers. Expected results are: (i) 8.3 km of roads to be constructed; (ii) increase of 1,300 passenger cars at the junction of Zhongxing Road and Wanxiang Road; (iii) annual sales of US$8 million from the flower market, tree nurseries, and bonsai area; (iv) 430 people employed (of whom 206 women) through site utilization activities; and (v) 100,000 visitors (of whom 48,000 women) to the created public space.

8. Status. Zhongxing Road was constructed independently of the project under a Public-Private Partnership Scheme. Further, the construction of a flower market, tree nurseries, and bonsai area were not carried out as they were no longer considered priority by the HMG. They are expected to be developed in the future using private capital. Consequently, as of June 15, 2020, there are: (i) 4.4 km of roads constructed (53% of the final target); (ii) an increase of passenger cars at the junction of Zhongxing Road and Wanxiang Road will not be attributed to the project; (iii) 280 people employed (of whom 150 women) through site utilization activities (65% of the final target). The jobs are currently limited to the site construction and maintenance activities for future public space utilization, including planting, gardening and operation of closed dumpsite; (iv) 65,000 visitors (of whom 31,000 women) to the public space created. These results have generated a 55% satisfaction rate of public space users (male and female) compared to a 75% final target. Activities of the dumpsite closure, improved environment and newly built infrastructure already brought about 12,800 direct project beneficiaries, of whom 6,400 females compared to the final targets of 20,000 beneficiaries of whom 9,600 females.

9. Component 3: Capacity Building and Technical Assistance. The component supports: (i) technical assistance for project management and implementation support, including general project management support services, detailed design and construction supervision, specialized technical monitoring, project results monitoring, and safeguards compliance monitoring; (ii) capacity building activities, such as training, workshops, and study visits for project staff and concerned government agencies’ staff on related technical subjects; and (iii) studies on a policy mechanism and technical guidelines for coal mining subsidence areas. The targets of this component are: (i) 965 persons trained at the skills training institutions (of whom 463 women); (ii) technical guidelines for mining subsidence area rehabilitation and redevelopment disseminated on a website; and (iii) a project site management entity established and operational. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

10. Status. As of August 30, 2020, (i) skill training has not taken place (rescheduled to FY21 Q3) due to COVID-19- related restrictions and lately launched site operation because of the construction delay; (ii) technical guidelines and policy advice for mining subsidence area rehabilitation and redevelopment are in progress- draft reports are available and the final reports will be submitted in late September 2020; and (iii) a project site management entity was established and its operational capacity is being enhanced.

11. Environmental Safeguards. The project has been in compliance with environmental safeguard policies and the environmental benefits anticipated at appraisal have been partly achieved including clearance of all dumpsites, improvement of water quality. The remediation works have turned the mining areas into lakes surrounded by vegetation, one of which becomes a new habitat for migratory birds (mandarin ducks, second class national protected animals) since October 2017 based on the observation of a local NGO (Huainan Bird Lover Association). Construction activities including dredging in the lake, as well as construction of green paths, vegetation and plantation around the lake started in mid-2019. In October 2019, the PMO received a complaint from the NGO expressing concerns about the potential impacts of construction activities on the migratory birds in the vicinity of the lake in the wintertime. After receiving the complaints, the PMO immediately organized consultation meetings with the NGO. Measures were taken to mitigate any negative impacts on habitat including suspension of all ongoing works in the vicinity of the new habitat during bird wintering period, changing the construction design and schedule, educating the relevant people and recording the incident in the GRM (grievance redress mechanism) system. The PMO addressed the complaint to the satisfaction of the NGO and received very positive recognition by local media. Following the Bank’s recommendations, the PMO is now conducting further assessments and stakeholder consultations to update the project’s Environmental and Social Management Plan (ESMP) with additional mitigation and management measures for habitat conservation to ensure compliance with the Bank’s policy requirements under OP 4.04 (Natural Habitats).

12. Social Safeguards. The project has been in compliance with social safeguard policies. Land acquisition lagged in the first few years, but it has been accelerated since beginning of 2019. Upon approval of this restructuring, land remediation for zone 3-1 will be cancelled. Total area of land acquisition will be reduced to around 9500 mu from previous 11495 mu. Huainan PMO and the local government have committed to complete 90% of land acquisition by October 2020 as evidenced by their commitment letters, availability of counterpart funds and frequent coordination by mayors.

13. Compliance. The project has been in compliance with World Bank procurement and financial management guidelines and procedures. The IFR as of December 31, 2019 was submitted to the Bank less than one month later than the required due date because of the COVID-19 outbreak. There are no outstanding audits or audit qualifications. The project is also in compliance with the legal covenants.

C. Rationale for Restructuring

14. A formal request from the Ministry of Finance to amend the loan agreement of the project was received on August 18, 2020. Accordingly, the proposed restructuring requests: (a) cancellation of US$37 million of the IBRD Loan; (b) reallocation of loan proceeds between disbursement categories and a change to the IBRD financing percentage for works; (c) extension of the Closing Date by 12 months; (d) changes of the project activities to reflect revised scope; (e) change of the institutional arrangements; and (f) modifications to the Results Framework (RF).

15. Loan savings and partial loan cancellation. The project is expected to have a loan savings of US$37 million (37% of the loan) to be cancelled due to: (i) around US$33.26 million loan savings from a competitive bidding process and currency depreciation of Renminbi Yuan to US dollar since the project started; (ii) estimated US$16.93 million The World Bank Huainan Mining Area Rehabilitation Project (P133000)

uncommitted funds from the proposed cancellation of several activities, including the land remediation for zone 3-1, a bonsai, a flower market, a tree nursery and Zhongxing road construction. Hence, the project will have an uncommitted IBRD loan amount of around US$50.2 million. Of this amount, about US$5.9 million will be utilized to finance new investments under Component 2 and US$7.3 million will be used to fill the counterpart funds gap under the Works category. This would leave the project with US$37 million of unused Loan proceeds, which was proposed to be cancelled. Changes of IBRD loan by component are summarized in the table as below.

Table 1 Cancellation and Reallocation Amount of IBRD Loan by Component (US$ million) Original IBRD Proposed for this restructuring Components Loan Cancellation Reallocation Component 1 63.61 25.40 38.21 Component 2 27.09 11.12 15.97 Component 3 3.09 0.07 3.02 Interests & misc. 5.96 0.41 5.55 Front-end fee 0.25 0.25 Total 100 37.00 63.00

16. Reallocation. Reallocation between disbursement categories is needed to reflect loan cancellation of US$37 million as well as (1) dismiss of one implementing agency - HAWIC which was eligible for the expenditures under categories 1(b) and 2(b); (2) retroactively increase the disbursement percentage from Loan Agreement signing (June 23, 2015) from 81% to 100% for works as to make up the counterpart funding gap; and (3) add additional Category 7 (Works, goods, consultants’ services, Training and Incremental Operating Costs for the Project) by merging the categories 1 ,2 and 3 as to facilitate full utilization of the loan proceeds.

17. Change of project activities and the impacts on PDO achievement. The project scope is proposed to be adjusted: (i) drop of land remediation of the Zone 3-1 under Component 1 due to difficulties of land acquisition and declining economy of the municipality resulted from lower demand in coal, while the municipal economy is largely dependent on coal mining activities; (ii) drop of bonsai/ tree nursery/ flower market under Component 2 because such activities were no longer prioritized by the government following the new national policy and they will be more market-driven creation of public space from remediated land; (iii) drop of Zhongxing road from the project under component 2. The construction of the road has been switched to private funding through public-private partnership which is encouraged by the central government to lower the government debt level. New activities were proposed under Component 2 to streamline the project and ensure PDO achievement. The new activities will include: (i) construction of one multi-functional visitor center for tourist reception, exhibition of mining history and urban development to demonstrate environmental remediation of the region. It will include areas for shopping and refreshment for visitors; (ii) increment of the number of curbside service stations as to provide better experiences to visitors with public toilets, bicycle docking and site maintenance; (iii) construction of three irrigation pumping stations for better site operation, where flower and fruit gardens will be constructed for creation of better public space and jobs will be created. The runoff will be better utilized to conserve water on site and improve the remediation effects. With completion of the new activities, PDO-b for creation of public space will not be affected negatively due to the drop of abovementioned activities. The changes are also in line with the change of government priorities. They are expected to enhance the utilization of the site by providing a The World Bank Huainan Mining Area Rehabilitation Project (P133000) better public space, creating job opportunities for local community, and improve the livelihoods of project affected persons. The proposed changes of project activities and their impacts on PDO achievement are summarized as below.

Table 2 Impacts of Proposed Changes of Project Activities on PDO Achievement Changes of project Impacts on PDO Achievement Change to final targets activities Component 1. Drop of remediation zone PDO will not be impacted and all PDO level Land area remediated with 3-1 in an area around 180 targets will be achieved. Although the improved vegetation will be ha. (Contract C03-1) total site remediation area will be reduced reduced from 410 ha. to 350 ha. by around 20%, timely completion of the overall project will be secured with reduced pressure on land acquisition and counterpart funding. Component 2 Drop of Zhongxing Road No impacts to PDO. The road has been - The indicator ‘Length of roads (Contract C07) switched to local private funding. rehabilitated/ constructed” is Although two intermediate results reduced from 8.3km to 6.97km; indicators will be adjusted, the PDO of - The indicator ‘Increase in traffic creating a public space and access to the volume at the junction of space will not be affected. Zhongxing Road and Wanxiang Road” is proposed to be removed as this will not be attributed to the project. Drop of flower market, tree This change will have some negative The indicator ‘Annual sales of flower nursery, bonsai garden impacts on achievement of PDO-b of market, tree nursery and Bonsai in (Contract C09) ‘public space creation’. However, this can operation’ will be removed. be fully compensated by adding some new activities as listed below. The change is in line with the change of government priority. Adding activities (one 1. A new visitor center is proposed with Three IRIs to be added to capture multi-functional visitor multiple functions of exhibition, the results: center, two curbside shopping, recreation, site - ‘Total areas of tourist service service stations and three administration for creating a better center constructed’ with end irrigation pumping stations public space. Jobs will be created for its target “3998m2 “. for public space creation. operation. - ‘Number of Curbside Service (revised Contract C10) 2. The number of curbside service Stations with Public Toilets stations will increase from initially 3 to Constructed’ with end target 5 with bigger size furnishing with public “5”. toilets and sanitary facilities. It also - ‘Number of Irrigation Pumping serves the purposes for effective site Stations Constructed’ with end operation and maintenance. target “3” 3. Three new pumping stations are proposed to enhance green irrigation The World Bank Huainan Mining Area Rehabilitation Project (P133000)

Changes of project Impacts on PDO Achievement Change to final targets activities system of site vegetation and better operation of gardens to improve the satisfaction level of visitors. It will retain rainwater to be utilized locally based on the nature-based approach.

18. Loan Closing Date/implementation schedule/disbursement estimate. The Closing Date is proposed to be extended by 12 months to allow completion of committed and new activities in order to meet the PDO. Although project progress is being accelerated recently, the delays in land acquisition and the outbreak of COVID-19 pandemic require additional time to fully achieve the project results. The main reasons for extension are: (i) around 5% of total planned remediation area in the vicinity of the lake where the additional Bank safeguards policy for natural habitat will be triggered, will not be completed by the current closing date of June 30, 2021. The construction activities near the new habitat are suspended for 7 months of a year. It will also take some time for triggering the new policy for procedural compliance; (ii) trial operation of the remediated areas (defects liability period to ensure better plantation and vegetation) will need additional 12 months after completion of construction; (iii) The procurement of new activities will be launched upon approval of this restructuring and construction of the visitor center is expected to start in late 2020 with 18 months of construction period. Hence, the new Closing Date of the loan is proposed as June 30, 2022. Without the loan extension, the PDO-a of site remediation will be achieved with compromised efficacy while PDO-b of creating a public space will not be achieved. The implementation schedule has been updated by the client as shown in Annex 1 and disbursement estimate projections have been revised to reflect the proposed new Closing Date.

19. Risk assessment. Currently the project’s overall risk rating remains as High. The risk rating for ‘Technical Design’ is rated Substantial and will decrease to Moderate as the main concern about technical design of dumpsite closure has been eliminated as evidenced by successful completion of the associated works. The risk rating for the ‘Institutional Capacity for implementation and sustainability’ is High but it is expected to decrease as the PMO/PIUs now have adequate capacity (thanks to training and capacity building actions) and experience to deliver the project, and municipal government leaders have reinforced the capacities of the implementing agencies. The Fiduciary risk is rated as Substantial due to the delays in procurement activities, but such risk will decrease as the problem has been solved. Social risk rating remains as High before substantial completion of land acquisition activities. Environmental risk rating remains as High until new safeguards policy is triggered, and all mitigation measures are in place.

II. DESCRIPTION OF PROPOSED CHANGES D. Details of Changes

20. Results Framework (RF). The project’s PDO and intermediate results indicators will be revised, nine indicators (including three supplementary indicators) will be added, and three indicators (including one supplementary indicator) will be deleted. Targets will be adjusted to the extended closing date. Main changes of RF are summarized in the table 3 below.

Table 3 Summary of indicator change in the Results Framework Original Indicator Changes to the indicators and final targets PDO level indicators The World Bank Huainan Mining Area Rehabilitation Project (P133000)

Original Indicator Changes to the indicators and final targets Component 1 KPI#1. Dump sites closed under the Increase the final target from 39 ha. to 94.9 ha. as achieved already. project Component 2 KPI#3. Satisfaction of users of public Change the description to reflect the change of the activities under space created under the project (of component 2: ‘Satisfaction of users of public space created under the whom women) / Total public space project (Percentage)’ created (public park, flower market, Two sub-indicators are added to better reflect the satisfaction by gender. bonsai area) KPI#3.1 Satisfaction of female users (Percentage) KPI#3.2 Satisfaction of male users (Percentage) Final targets for KPI-3 (and KPI#3-1, #3-2) remain as 75% KPI#4 ‘Public space created (public park, tourist/ exhibition centers and associated entertainment/ recreational facilities) (Hectare (Ha)) is added. This was segregated from previous KPI-3 to be made into a standalone indicator measuring the second PDO outcome. The indicator’s description was revised to reflect the changed activities under Component 2. The end target was decreased from 393 ha to 379.67 ha to reflect the scale of the revised activities. Both Components 1 & 2 KPI#4. Direct project beneficiaries (of This is changed to KPI-5 with sub-indicator “KPI-5.1 Female beneficiaries whom women) (Percentage)” segregated from the original. Total beneficiaries remain unchanged and female beneficiaries change from the number 9600 (48% equivalent) to the percentage 47% (equivalent of 9400) to reflect the most recent local population demography. Intermediate Results Indicators (IRIs) Component 1 IRI-1.1. land area remediated with Final target reduced from 410 ha. to 350 ha. because of dropped improved vegetation coverage activities. Add indicator IRI-1.2 Vegetation cover of the remediated areas (percentage). Baseline data 20% with final target 75% to measure the vegetation activities as part of the site’s remediation. IRI-1.2. Leachate collected and treated Change the sequence number to IRI 1-3. Reduce the final target from for safe disposal annually initial 8400m3 to 350 m3 annually. Initial calculation based on assumption of waste compositions (mainly municipal solid waste of fresh nature) is incorrect. The actual waste is composed of municipal, industrial and construction waste informally dumped for decades. IRI-1.3. Area protected against 1/30 year Change the sequence number to IRI 1-4. floods Add IRI 1-5 Length of green paths constructed (kilometer) with end target 28.5km to better capture project outcome. Add IRI 1-6 Length of the flood discharge canals rehabilitated (kilometers) with end target 7.61km as to better capture project outcome. Component 2 IRI-2.1. Length of road Reduce the final target from 8.3km to 6.97km due to the drop of rehabilitated/constructed Zhongxing Road. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

Original Indicator Changes to the indicators and final targets IRI-2.2 Increase in traffic volume at the Remove the indicator as Zhongxing Road will not be attributed to the junction of Zhongxing Road and project. Wanxiang Road IRI-2.3. Annual sales of flower market, Remove the indicator because of the cancellation of such financial tree nursery and Bonsai in operation activities. IRI-2.4. Number of people employed Change the sequence number to IRI- 2.2. through site utilization activities (of Segregate the original indicator and add sub-indicator IRI 2.2.1 Number whom women) of women employed through site utilization activities (number). End targets for IRI-2.2 and 2.2.1 remain unchanged. IRI-2.5. Number of visitors to public Change the sequence number to IRI 2-3. space created (of whom women) Segregate the original indicator and add sub-indicator IRI 2.3.1 Number of women visitors to public space created (number). End targets for IRI-2.3 and 2.3.1 remain unchanged Add indicator IRI 2.4 Total areas of multi-functional visitor center constructed (square meters (m2)). This will be used to measure new activity. The end target is 3998m2. Add indicator IRI 2.5 Number of curbside service stations with public toilets constructed with end target 5. Add indicator IRI 2.6 Number of Irrigation Pumping Stations Constructed with end target 3. Component 3 IRI-3.1. Number of people trained at the Revise with segregation of the number for women. skills training institutions (of whom Add sub-indicator IRI-3.1.1 Number of women trained at the skills women) training institutions. End targets for the total and for the women remain unchanged. IRI 3.3 Project site management entity Change its future role from the management of flower market/bonsai/ established and operational tree nursery to the site operation and maintenance.

21. Changes to Project Component Costs. Table 2 shows the component costs at appraisal and the proposed revised costs. The table takes into account the proposed changes in the IBRD financing ratio as further discussed below, and the cancellation of US$37 million of the IBRD Loan. A brief summary is available in Section IV.

Table 4 – Project Cost and Financing by Components (US$ million)

At Appraisal1 After Restructuring IBRD IBRD Total IBRD Total IBRD Components Financing Financing % % Component 1- Environmental Remediation 89.52 63.61 71 57.87 38.21 66 and Water Management Environmental Remediation 65.45 45.65 70 34.18 22.57 66 Water Stream Remediation 10.14 7.20 71 6.01 3.97 66 Dumpsite Closure 13.93 10.77 77 17.68 11.67 66

1 Total and IBRD costs are as per the Project Appraisal Document. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

At Appraisal1 After Restructuring IBRD IBRD Total IBRD Total IBRD Components Financing Financing % % Component 2 - Infrastructure Improvement 39.71 27.09 68 24.18 15.97 66 and Site Utilization Urban Infrastructure Improvement 21.83 12.91 59 8.14 5.38 66 Site Utilization for Community 17.88 14.18 79 16.04 10.59 66 Development Component 3 -Capacity Building and 18.48 3.09 17 3.02 3.02 100 Technical Assistance Sub-Total 147.71 93.79 63 85.07 57.20 67 Contingency 14.46 0.00 0 7.61 0.00 0 Interest During Construction and 5.96 5.96 100 5.55 5.55 100 Commitment Fee Front-end Fee 0.25 0.25 100 0.25 0.25 100 Total Project Costs 168.40 100.00 59 98.48 63.00 64

22. Loan Closing Date/Disbursement Estimates. The closing date is proposed to be extended by 12 months, from June 30, 2021 to June 30, 2022. The new end disbursement date will be set for October 30, 2022. The disbursement estimates and the implementation schedule has been adjusted accordingly. See further detail in Section III Annex 1 respectively. The municipal government has committed that all project activities will be completed and the PDO will be fully achieved by the proposed new closing date.

23. Increased disbursement percentage and loan reallocation. The disbursement percentage for Works will be increased from 81% to 100% retroactively from the signing of the Loan Agreement on June 23, 2015. The estimated impact amount due to retro increase for works is US$5.21 million. Categories 1, 2 and 3 will be merged for all activities under components 1,2 and 3. See further detail in Section IV.

24. Overall Risk Rating. The overall risk rating remains High but will decrease gradually after restructuring. The analysis of residual risks is summarized in the Table 5 as below. They will be recalibrated during the next implementation support mission.

Table 5 Summary of Residual Risks after this restructuring After Notes Risk Category Current restructuring Continuous and strong commitments Political and Governance Moderate Low from the government on environmental remediation as the priority. Upon improvement of counterpart funding allocation, it will decrease Macroeconomic Moderate Moderate further. This has been committed by the municipality. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

After Notes Risk Category Current restructuring Adjusted project scope will be better Sector Strategies and Policies Moderate Low aligned with governmental development strategy and priorities. Technical Design of Project or All designs are done following good Substantial Moderate Program practices. Local government leaders are committed to the project. PMO/PIUs are continuously pushed to improve the Institutional Capacity for capacity. PMO Director has more time Implementation and High Substantial devoted to this project. More staff at PIU Sustainability level have been mobilized for solving land acquisition issue and improving construction management. Previous issue of delayed procurement Fiduciary Substantial Moderate has been solved. E&S risks remain as High until completion of land acquisition activities and when Environment and Social High High the new environmental safeguards policy is triggered with all mitigation measures in place. Will continuously engage stakeholders in project implementation and address any Stakeholders Moderate Moderate complaints from public. It will decrease when E&S risks decrease. COVID-19 related risks have been Other Low addressed and mitigated. Overall High High

25. Technical Analysis. The proposed new activities are technically sound. Feasibility study report for the new activities has been prepared by the PMO, reviewed by the World Bank task team, and approved by Development and Reform Commission. The project’s consultant will continue to provide technical support throughout project implementation. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

26. Economic and Financial Analysis. An economic analysis of the proposed new activities in Huainan Municipality was carried out in accordance with the World Bank guidelines for Economic Analysis of Investment Operations and Economic Analysis Guidance Note.2 The analysis showed that the proposed activities would bring substantial economic benefits to Huainan Municipality, including: (i) property appreciation in the built-up area; (ii) land appreciation in the area; and (iii) increases in economic outputs due to higher site utilization. The new activities are expected to have an Economic Internal Rate of Return (EIRR) of 18.14%, which is higher than the World Bank recommended economic opportunity cost of capital (12%). A sensitivity analysis carried out indicated that the EIRRs for the tested cases were higher than 12%. Financial analysis is not necessary because all financial activities, including flower market, bonsai and tree nursery, will be dropped.

27. Institutional Arrangements. The PMO within the Huainan Municipal Finance Bureau will not change. However, changes to institutional arrangements are needed to reflect the 2015 municipal organizational reform, where two of the five Project Implementing Agencies (PIAs) - Huainan Agriculture and Water Investment Company (HAWIC) and Huainan Municipality Coal Mining Subsidence Management Office (HMCMSMO) - were dismissed. Their responsibilities were taken over by Huainan Municipal Urban and Rural Construction Bureau (HMURCB, previous name of Huainan Municipality Construction Commission - HMCC), and Huainan Municipality Development Reform Commission (HMDRC) respectively. Project implementation will not be affected by such institutional change.

28. Environmental and Social Safeguard Policies. The proposed changes involve the cancellation of some project activities (Environmental Remediation of Zone 3-1 under Component 1 and construction of Zhongxing Road, a flower market, a bonsai area and tree nursery under Component 2) and addition of some new activities (one multi- functional visitor center, two additional curbside service stations and three pumping stations). These activities will neither change the environmental assessment category nor go beyond the initial project boundary according to the assessment conducted by the external monitoring agency. The original expectation of environmental benefits from the project will not be affected. Neither additional land acquisition nor resettlement will be involved in the restructuring. All pending works will be conducted on the land plots already covered by the project’s Resettlement Action Plan (RAP) which was cleared by the Bank Regional Safeguards Secretariat and disclosed both at InfoShop and in-country on January 29, 2019. Additionally, the land use status for new project activities remains the same as confirmed by the third-party due diligence report. Therefore, this restructuring will neither trigger any new safeguard policies nor require the preparation of new safeguards documents for land acquisition. Triggering of OP 4.04 for natural habitat shall be processed through a second restructuring launched upon completion of updating, consultation, and disclosure of the ESMP. The task team has agreed with the PMO to put on hold all project activities with potentially negative impacts on the newly identified habitat. The project will continue to use the existing multi-level effective grievance redress mechanism to address any related environmental and social issues.

29. Amendments to the Loan Agreement and the Project Agreement. Certain of the above-mentioned changes will also require appropriate amendments to the Loan Agreement and the Project Agreement.

2 The World Bank. January 1998. Handbook on Economic Analysis of Investment Operations. Operational Core Services Network, Learning and Leadership Center. The World Bank. April 9, 2013. Guidance Note of Economic Analysis for Investment Project Financing. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

III. SUMMARY OF CHANGES

Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Institutional Arrangements ✔ Implementation Schedule ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Social Analysis ✔ Environmental Analysis ✔

IV. DETAILED CHANGE(S) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Environmental Component 1: Environmental Remediation and Water 89.52 Revised Remediation and Water 57.87 Management Management Component 2: Infrastructure Component 2: Infrastructure 39.71 Revised Improvement and Site 24.18 Improvement and Site Utilization Utilization Component 3: Capacity Component 3: Capacity Building 18.48 Revised Building and Technical 3.02 and Technical Assistance Assistance TOTAL 147.71 85.07

OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S)

Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-85120 Effective 30-Jun-2021 30-Jun-2022 30-Oct-2022

OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS

Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IBRD- Disburs 100,000,000.0 USD 37,000,000.00 18-Aug-2020 63,000,000.00 FOR 85120-001 ing 0 COUNTRY REASONS

OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES

Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed

IBRD-85120-001 | Currency: USD The World Bank Huainan Mining Area Rehabilitation Project (P133000)

iLap Category Sequence No: 1(A) Current Expenditure Category: CW under P.A&B1

75,611,000.00 22,221,502.99 22,221,503.00 81.00 81 iLap Category Sequence No: 1(B) Current Expenditure Category: CW under P.B2

9,357,000.00 0.00 0.00 81.00 81 iLap Category Sequence No: 2(A) Current Expenditure Category: GD under P. A,B1 & C

1,290,000.00 99,704.83 99,704.83 100.00 100.00 iLap Category Sequence No: 2(B) Current Expenditure Category: GD under P.B2

4,517,000.00 0.00 0.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: CS, TRN & IOC

3,015,000.00 618,002.17 618,002.17 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Interest and other charges

5,960,000.00 3,360,763.01 5,554,362.00 100 iLap Category Sequence No: 7 Current Expenditure Category: Works/Goods/Services/Incremental Operations

0.00 0.00 34,256,428.00 100

Total 99,750,000.00 26,299,973.00 62,750,000.00

OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES

Change in Disbursement Estimates Yes

Year Current Proposed 2015 0.00 0.00

2016 2,000,000.00 1,000,000.00 The World Bank Huainan Mining Area Rehabilitation Project (P133000)

2017 18,000,000.00 12,735,001.75

2018 25,000,000.00 5,720,705.75

2019 23,000,000.00 3,259,550.62

2020 22,000,000.00 8,223,952.01

2021 10,000,000.00 8,000,000.00

2022 0.00 14,000,000.00

2023 0.00 10,060,789.87

OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating at Approval Current Rating

Political and Governance  Low Macroeconomic  Moderate Sector Strategies and Policies  Low Technical Design of Project or Program  Moderate

Institutional Capacity for Implementation and  Substantial Sustainability Fiduciary  Moderate Environment and Social  High Stakeholders  Moderate Other  Low Overall  High . The World Bank Huainan Mining Area Rehabilitation Project (P133000)

. Results framework COUNTRY: China Huainan Mining Area Rehabilitation Project

Project Development Objectives(s) The project development objective is to remediate and create a public space at the JiuDa mining site in Huainan city.

Project Development Objective Indicators by Objectives/ Outcomes

RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 To remediate the JiuDa mining site (Action: This Objective is New) KPI #1 Dump sites closed under the project 0.00 0.00 23.90 55.90 94.90 94.90 94.90 94.90 (Hectare(Ha))

Rationale: Change the final target from initial 39 ha. to 94.9 ha. which has already achieved and exceeded. Various solid waste dump sites are closed permanently: Action: This indicator has  Mining wastes were urged to be removed and/or reused; been Revised  Construction wastes were agreed to be reused by a local company for construction;  Municipal solid wastes were removed and cleared to a formal dump sites with good environmental practice to prevent pollution to soil and water. This is the results of the combined efforts by government (who is regulators) and project stakeholders.

KPI #2 Improved water quality in the remediated Below Class V Below Class V Below Class V Below Class V Class V Class V Class V Class V area (water quality grade) (Text) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Rationale: Action: This indicator has The indicator’s description is revised to reflect the location of the improved water quality. The end target is set for the extended closing date. been Revised

To create a public space in JiuDa mining site (Action: This Objective is New) KPI #3 Satisfaction of users of public space 0.00 0.00 20.00 40.00 45.00 55.00 70.00 75.00 created under the project (Percentage)

Rationale: Action: This indicator has The end target is set for the extended closing date been Revised

KPI #3.1 Total public space created (public park, flower market, 0.00 0.00 50.00 150.00 260.00 393.00 393.00 bonsai area) (Hectare(Ha))

Action: This indicator Rationale: has been Marked for The indicator is reinstated as KPI-4 with revised description. Deletion

KPI #3.1 Satisfaction of female users 0.00 0.00 20.00 40.00 45.00 55.00 70.00 75.00 (Percentage) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Rationale: Action: This indicator The indicator’s description is improved for clarity and gender breakdown indicators are added. The original supplementary indicator (Total public space created) is New is made into a standalone indicator. The end target is not changed, and set for the extended closing date.

KPI #3.2 Satisfaction of male users 0.00 0.00 20.00 40.00 45.00 55.00 70.00 75.00 (Percentage)

Rationale: Action: This indicator This is a gender supplementary indicator for KPI-3. The original supplementary indicator (Total public space created) is made into a standalone indicator (KPI-4). is New

KPI #4 Public space created (public park, tourist/exhibition centers and associated 0.00 0.00 0.00 0.00 50.00 200.00 300.00 379.67 entertainment/ recreational facilities) (Hectare(Ha))

Rationale: This indicator is made into a standalone indicator measuring the PDO-b outcome. The indicator’s description is revised to reflect the changed activities under Action: This indicator is Component 2 (original: Cumulative area of public space created including public park, flower market and bonsai area). The end target is decreased from 393 ha to New 379.67 ha to reflect the scale of the revised activities, and is set for the extended closing date.

To remediate and create a public space at the JiuDa mining site (Action: This Objective has been Revised) KPI #5 Direct project 0.00 0.00 5,200.00 8,320.00 12,800.00 20,000.00 20,000.00 20,000.00 beneficiaries (Number)

Action: This indicator has Rationale: been Revised The description of this indicator is improved and female target is segregated. The end targets are not changed, but set for the extended closing date. The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

KPI #5.1 Female beneficiaries 0.00 0.00 41.00 45.00 47.00 47.00 47.00 47.00 (Percentage)

Rationale: Action: This indicator Change the measurement of female beneficiaries from initial number to percentage. Final target is adjusted to 47% (equivalent to 9400, from previous 9600) has been Revised according to the latest population data.

PDO Table SPACE

Intermediate Results Indicators by Components

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 Component 1: Environmental Remediation and Water Management IRI 1.1 Land area remediated with 0.00 0.00 35.00 101.00 230.00 300.00 350.00 350.00 improved vegetation coverage (Hectare(Ha))

Rationale: Action: This indicator has The final target is reduced to 350 ha. from initial 410 ha. to reflect the drop of remediation Zone 3-1 under the project. been Revised

IRI 1.2 Vegetation cover of the remediated areas 20.00 20.00 20.00 25.00 30.00 40.00 65.00 75.00 (Percentage) (Percentage) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Rationale: This indicator is added to measure the vegetation activities as part of the site’s remediation. Action: This indicator is Baseline data was estimated as less than 20% coverage. Intermediate target will be measured based on the construction progress. Final achievement will be New measured through survey by local afforestation authority.

IRI 1.3 Leachate collected and treated for safe 0.00 0.00 0.00 0.00 350.00 350.00 350.00 350.00 disposal annually (Cubic Meter(m3))

Rationale: This indicator’s end target is scaled down from 8,400 m3 to 350 m3 annually based on improved knowledge of leachate volumes at the site, and the end target is set for the revised closing date. The estimated leachate volume at appraisal was calculated based on unmatured municipal solid waste while the actual solid Action: This indicator has waste is a combination of municipal, construction, and mining wastes, the majority of which has been degraded/digested after long exposure in the air. Leachate been Revised collection started in late 2018 and currently leachate is entirely collected and transferred by an outsourced site operator to wastewater treatment plant under the supervision of the environmental authority. The annual leachate generation is expected to decrease over the time as the dumpsite was closed given waterproof system constructed under the project.

IRI 1.4 Area protected against 1/30 year floods 0.00 0.00 0.00 0.00 4.00 6.00 9.00 9.00 (Square kilometer(km2))

Rationale: Action: This indicator has The end target is set for the revised closing date. been Revised

IRI 1.5 Length of green paths constructed 0.00 0.00 0.00 5.00 11.00 20.00 25.00 28.48 (Kilometers) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Rationale: This indicator is added to measure an existing activity related to the remediation of the site. The end target is composed of: (i) green paths Grade I of a total Action: This indicator is length of 7.679 km with 4.5 km-long constructed, (ii) green paths Grade II of a total length of 3.263 km with 1.7 km-long constructed, and (iii) green paths Grade III New of a total length of 17.541 km with 5 km-long constructed.

IRI 1.6 Length of the flood discharge canals 0.00 0.00 0.00 3.00 5.50 7.61 8.90 8.90 rehabilitated (Kilometers)

Rationale: Action: This indicator is This indicator is added to measure the main output of the waterworks related to the remediation of the site to reduce the flood risks. The end target is composed New of 9 flood discharge ditches of a total length of 8.9 km across a land area of around 9.0 km2. Total length of 7.61 km has been rehabilitated to-date.

Component 2: Infrastructure Improvement and Site Utilization IRI 2.1 Length of road rehabilitated/constructed 0.00 0.00 1.30 4.20 4.20 6.00 6.97 6.97 (Kilometers)

Rationale: Action: This indicator has The end target is decreased from 8.3 km to 6.97 km to reflect the drop of Zhongxing road (switching to local funding) . The end target is set for the extended been Revised closing date.

IOI 2.2 Increase in traffic volume at the junction of Zhongxing Road and 0.00 1,300.00 Wanxiang Road (passenger car unity) (Text) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Action: This indicator has Rationale: been Marked for This indicator will be dropped due to the cancellation of this activity. Deletion

IOI 2.3 Annual sales of flower market, tree 0.00 0.00 0.00 1,000,000.00 2,000,000.00 8,000,000.00 8,000,000.00 8,000,000.00 nursery and Bonsai in operation (Amount(USD))

Action: This indicator has Rationale: been Marked for This indicator will be dropped due to the cancellation of this activity. Deletion

IRI 2.2 Number of people employed through site 0.00 0.00 0.00 0.00 0.00 100.00 350.00 430.00 utilization activities (Number)

Rationale: This indicator measures the number of people employed for long-term in site utilization activities. Due to the change of site utilization activities, the type of Action: This indicator has employment will also change from working in the bonsai, tree nursery and flower markets, to site operation and management, including gardening, running of the been Revised multi-functional visitor center, car parking, and curbside service stations. The description of this indicator and supplementary indicator is improved. The unchanged end targets are set for the extended closing date.

IRI 2.2.1 Number of women employed 0.00 0.00 0.00 0.00 0.00 50.00 206.00 206.00 through site utilization activities (Number) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Rationale: Action: This indicator End target is set for the extended closing date has been Revised

IRI 2.3 Number of visitors to public space created 0.00 0.00 0.00 0.00 0.00 20,000.00 50,000.00 100,000.00 (Number)

Rationale: Action: This indicator has The description of this indicator and supplementary indicator is improved. The unchanged end targets are set for the extended closing date. been Revised

IRI 2.3.1 Number of Women visitors to 0.00 0.00 0.00 0.00 0.00 9,800.00 24,000.00 48,000.00 public space created (Number)

Rationale: Action: This indicator End target is set for the extended closing date has been Revised

IRI 2.4 Total areas of tourist service center 0.00 0.00 0.00 0.00 0.00 0.00 2,500.00 3,998.00 constructed (Square Meter(m2))

Rationale: Action: This indicator is The new indicator is added to measure the output of multi-functional visitor center under Component 2. The final target will be 3,998 m2 as part of the site New utilization activities under Component 2

IRI 2.5 Number of 0.00 0.00 0.00 0.00 0.00 0.00 3.00 5.00 Curbside Service Stations The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 with Public Toilets Constructed (Number)

Rationale: Action: This indicator is This indicator is added to measure an expanded project activity under Component 2. The project is already financing the construction of 3 stations, and as part of New the restructuring, 2 additional stations will be constructed for a total of 5 stations with enlarged size and multiple functions (for site operation and maintenance).

IRI 2.6 Number of Irrigation Pumping 0.00 0.00 0.00 0.00 0.00 0.00 2.00 3.00 Stations Constructed (Number)

Rationale: Action: This indicator is This indicator is added to measure a new activity under Component 2. New

Component 3: Capacity Building and Technical Assistance IRI 3.1 Number of people trained at the skills 0.00 0.00 0.00 0.00 0.00 100.00 800.00 965.00 training institutions (Number)

Rationale: Action: This indicator has This end target is set for the extended closing date. been Revised

IRI 3.1.1 Number of women trained at the 0.00 0.00 0.00 0.00 0.00 50.00 380.00 463.00 skills training institutions (Number) The World Bank Huainan Mining Area Rehabilitation Project (P133000)

RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6

Rationale: Action: This indicator The end target is set for the extended closing date has been Revised

IRI 3.2 Technical Technical Guidelines for mining Reports developed Technical Guidelines Guidelines subsidence area Non-Existent Non-Existent Non-Existent Non-Existent Inception reports and workshops disseminated on disseminated on rehabilitation & held Website Website redevelopment (Text)

Rationale: Action: This indicator has The end target is set for the extended closing date. been Revised

IRI 3.3 Project site management entity No No Yes Yes Yes Yes Yes Yes established and operational (Yes/No)

Rationale: Action: This indicator has The initial role of the management of flower market/bonsai/ tree nursery is changed to the management of site operation and maintenance. been Revised The end target is set for the extended closing date.

IO Table SPACE

The World Bank Huainan Mining Area Rehabilitation Project (P133000)

Annex 1 : Updated Implementation Schedule of Main Contracts

Updated Implementation Schedule of Main Contracts with extended loan closing to June 30, 2022

% of 2020 2021 2022 Complet. No Description of Contracts By Jun 30, 2020 Jun Jul Aug Sep Oct NovDec Jan Feb MarApr MayJun Jul Aug Sep Oct NovDec Jan Feb MarApr MayJun

1 C01:Rehabilitation Zone 1 100% Contract closing Trial operation trasfer to site operator

Trial operation and transfer 2 C02-1: Rehabilitation Zone 2-1 50% Construction in Progress Contract closing to operator Trial operation and transfer 3 C02-2: Rehabilitation Zone 2-2 70% Construction in Progress Contract closing to operator Trial operation and transfer 4 C03-2: Rehabilitation Zone 3-2 55% Construction in Progress Contract closing to operator Trial operation and transfer 5 C04: Green paths 58% Construction in Progress Contract closing to operator

6 C05: Water System 85% Construction in Progress Contract closing and transfer to operator

7 C06: Dumpsite Closure 100% Ongoing Operation by Outsourced operator

8 C08: Jiukong/Wanxiang/Yanshan Rds 55% Construction in Progress Contract closing Transfer to operation

C10: Tourist center, curbside Installation, commissioning 9 0% Procurement Civil works construction service, pumping stations, etc. and trasfer to operator Note: Contract C03-1 for remediation zone C03-1, Contract C07 for Zhongxing Road and Contract C09 for flower markets/bonsai/tree nursery are formally cancelled after restructuring. Contracts for Goods/consulting services are not listed above.