Social Monitoring Report PRC: Heilongjiang Energy Efficient District Heating Project

Social Monitoring Report

September 2016 Project Number: 44011-013

PRC: Heilongjiang Energy Efficient District Heating Project

September 2015 to September 2016

Prepared by Heilongjiang Project Management Office and HJI Group Corporation

This report has been submitted to ADB by the Heilongjiang Government Project Management Office and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. PEOPLE’S REPUBLIC OF CHINA HEILONGJIANG EFFICIENT DISTRICT HEATING PROJECT Loan 2898-PRC

Poverty and Social Impact Monitoring

and Evaluation Report

(September 2015 – September 2016)

Prepared for

Asian Development Bank

Heilongjiang Project Management Office

HJI Group Corporation

September 2016

Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report

ABBREVIATIONS

ADB – Asian Development Bank CFB – circulating fluidized bed CNY – Chinese Yuan (currency unit) EA – executing agency GAP – gender action plan HES – heat exchange station HH – household IA – implementing agency LRRP – labor retrenchment and reemployment plan MLSSP – minimum living standard security program PMO – project management office PPTA – project preparatory technical assistance

PRC – People’s Republic of China SCADA – supervisory control and data acquisition

Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report

TABLE OF CONTENTS

I. OVERVIEW OF THE PROJECT IMPACTS BACKGROUND ...... 1 II. CHANGES OF THE PROJECT SCOPE AND BENEFICIARIES ...... 2

A． Changes of the Project Scope ...... 2

B． Changes of Beneficiaries due to the Project Scope Changes ...... 3

III. PROJECT POVERTY AND SOCIAL IMPACTS ...... 6 A. Shift from Small Boilers to Centralized Heating ...... 6 B. Population Benefited from the Closure of Small Boilers ...... 10 C. Poverty Population Benefited from the Closure of Small Boilers ...... 14 D. Women Benefited from the Closure of Small Boilers ...... 15 E. Women Benefited from the Removal of Household Stoves ...... 15 F. Affected Boiler Workers Retrenchment and Reemployment ...... 16 G. Public Awareness Enhancement Activities ...... 18 IV. PROJECT POVERTY AND SOCIAL IMPACTS MONITORING RESULTS ...... 20 V. GENDER ACTION PLAN IMPLEMENTATION STATUS ...... 23

LIST OF TABLES TABLE 1:ORIGINAL SCOPE AND CHANGES OF SCOPE TABLE 2:CHANGE OF BENEFICIARIES DUE TO SCOPE CHANGES TABLE 3:SMALL BOILERS TO BE CLOSED AND THE NUMBER OF WORKERS AFFECTED TABLE 4:SUMMARY OF SMALL BOILERS CLOSED R BY SEPT 2016 TABLE 5:SMALL BOILERS CLOSED AND DISPOSED BY SEPT 2016 TABLE 6:DIRECTLY BENEFITED HHS AND POPULATION BY THE CLOSURE OF SMALL BOILERS TABLE 7:POVERTY POPULATION BENEFITED FROM THE CLOSURE OF SMALL BOILERS 11 TABLE 8:FEMALE HEATING BILL COLLECTORS HIRED TABLE 9:HOUSEHOLD STOVES REMOVED IN QITAIHE TABLE 10:LABOR RETRENCHMENT AND REEMPLOYMENT TABLE 11:SMALL BOILERS TO BE CLOSED IN WINTER 2017/2018 TABLE 12:STAFF ASSIGNMENT FOR PROJECT POVERTY AND SOCIAL IMPACTS MONITORING TABLE 13:MONITORING RESULTS OF PROJECT POVERTY AND SOCIAL IMPACTS TABLE 14: GERNER ACTION PLAN IMPLEMENTATION STATUS TABLE

Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report

I. OVERVIEW OF THE PROJECT IMPACTS BACKGROUND

1. This Poverty and Social Impact Monitoring and Evaluation Report focuses on the assessment of the poverty and social impacts of Asian Development Bank (ADB) funded Heilongjiang Efficient District Heating Project (the Project) during the implementation period from September 2013 to September 2016. 2. ADB approved a loan of $150 million to finance the project on 25 September 2012, which comprised three outputs: (i) expanded district heating coverage in eight project cities without net increase in emissions, (ii) improved energy efficient heat generation capacity in three project cities (Harbin, Raohe and Tongjang), and (iii) promotion of private sector participation in district heating in two project cities (Raohe and Tongjiang). The outcome will be improved air quality and reduced greenhouse gas emissions in eight urban areas in Heilongjiang province. The Loan was signed on 26 February 2013 and became effective on 24 April 2013. The Project was delegated to PRCM for administration on 17 July 2014. The loan will be closed on 30 June 2018 3. In line with the loan agreement, the project implementing agencies (IAs) are responsible to ensure that Project contractors: (i) are encouraged to use local labor and local materials in works; (ii) provide equal pay to men and women for work of equal type; (iii) provide safe working conditions for both male and female workers; (iv) maximize employment for the affected persons with equal access to women, including disadvantaged women; (v) comply with applicable labor laws; and (vi) abstain from child and bonded labor in construction, operation and maintenance activities on the Project facilities. 4. In line with the loan agreement, the IAs have agreed to implement the Gender Action Plan (GAP) and the Labor Retrenchment and Reemployment Plan (LRRP) as stated in the Project Agreement. According to the GAP, the Project will safeguard the livelihood of poor households headed by women through the heating assistance to be provided by the local government and implementing agencies. The poor households under the government’s minimum living standard security program, including poor households headed by women, will be subsidized 70% of heating tariff by the local government and waived 100% of connection fee from the heating company. The project will create job opportunities for 50% women as heating bill collectors 5. Per LRRP, with the shift of heating supply method from small boilers to centralized heating, all the project affected workers need to undertake training to acquire new skills and knowledge to operate the new heating system. Both full time and seasonal workers who are willing to work at the new heating system are eligible to join the technical training program. The IAs are responsible for providing the trainings supported by the respective local quality and technology inspection bureau. 6. Contents of this report include: project scope changes, poverty and social impact variations, poverty and social impact monitoring results, conclusions and suggestions.

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II. CHANGES OF THE PROJECT SCOPE AND BENEFICIARIES

A． Changes of the Project Scope

7. As originally planned, the Project, consisting of nine sub-projects, was designed to expand and upgrade district heating systems (DHSs), heat source plants, pipeline networks, heat exchange stations and the supervisory control and data acquisition (SCADA1) system in eight cities of Heilongjiang Province. The nine subprojects were planned to close down 470 small and inefficient coal-fired boilers, replace 275,166 household stoves, cover 40.80 million m2 heating areas, and were estimated to save 757,599 tons of standard coal per year. 8. However, due to inevitable factors during project implementation, the project could not be all implemented according to the original plan. For example, located in the most northeast part of China, Heilongjiang Province is in the cold region, where the earliest frost occurs in late September in most places, and the minimum temperatures of winter can fall to below -40°C. So the heating season lasts for 6 months starting on October 15, by when heating supply must be provided to the residential buildings, office buildings and public services buildings. Yichun Xinqing Subproject, Jidong Subproject, Raohe Subproject had to use project counterpart funds or domestic funds to implement their projects ahead of the schedule. Therefore, Yichun Xinqing Subproject, Jidong Subproject and Raohe Subproject have to cancel their subprojects and use these funds to invest on other ADB financed projects. 9. The original scope of the project and the changes of the scope are shown in Table 1. After the change of the scope, the project consists of six subprojects instead of nine subprojects, with 374 small boilers (including 3 additional small boilers from Harbin Subproject) instead of 470 being closed, and covering 36.6 million m2 heating areas instead of 40.80 million m2.

1 SCADA- supervisory control and data acquisition system to supervise the temperature and pressure in the heat supply pipe network, and adjust the flow in heat exchange stations。The system will automatically adjust the heat water’s temperature and flow speed according to the actual heat consumption.

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Table 1: Project Scope and Changes

New Number of Heating Small Heating Heating SCADAS Scope No. Subproject Heating Pipeline( Boiler Area(milli Source ystem 2 Change a Exchangers km) Closure on m ) (MWth)

Harbin Taiping 2×116 MWth b 1 40 Yes 22 18+3 4.0 HP and DH CFB -- IA 2 Jiagedaqi DH 30 Yes 21 68 6.0 Changed Jiamusi West -- 3 111 Yes 68 218 14.8 DH Jidong County 4 -- 34 Yes 7 32 0.9 Cancelled DH 5 Qitaihe DH -- 33 Yes 30 15 7.6 Raohe Town 3×14 MWth 6 0 No 8 19 0.6 Cancelled HP and DH CFB Tongjiang City 3×58 MWth 7 24 Yes 17 36 2.7 HP and DH CFB Yichun City– 8 Tangwanghe -- 22 Yes 27 16 1.5 DH Yichun City– 9 -- 27 Yes 17 48 2.7 Cancelled Xinqing DH Total 448 MW 321 217 470 40.8 New Total 412 MW 260 185 374 36.6

CFB = circulating fluidized-bed, DH = district heating, HP = heating plant, km = kilometer, m2 = square meter, MWth= megawatt thermal, No. = number, SCADA = supervisory control and data acquisition. a The subprojects without new heat source installation will purchase heat from existing combined heat and power plants. b Harbin subproject found during implementation 3 more boilers to be closed. Sources: Table 1 in ADB’s Project Management Manual.

B． Changes of Beneficiaries due to the Project Scope Changes

10. Original social and poverty impacts. Before the scope changes, the project would directly benefit more than 1.63 million urban residents of the project cities, with about half of whom (0.81 million) are female，in which 37,000 are poor households (including 1,300 poor households headed by women) with 130,000 poverty population. The direct benefits will be provided to 174,625 children in 314 schools and patients and medical staffs in 108 hospitals.

11. Social and poverty impacts after scope changes. After the scope changes, The project will directly benefit about 1.398 million urban residents in the project cities in the poverty population of 120,000 (at poverty incident rate of 8.6%) , with about half of whom (0.69 million) female, and 34,000 (by calculation) poor households (including 1,200 poor households by calculation headed by women). The direct benefits are provided to 144,388 children in 289 schools and patients and medical staffs in 97 hospitals. The project will potentially benefit 990,000 (71% of the total beneficiaries) residents predicted mainly from shantytown transformation and the closure of small boilers, with details referring to Table 2.

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Table 2： Project Beneficiaries’ Populationand Changes

Current Potential Poverty Female Schools Hospitals Subproject Beneficiari Beneficiari Source Total Incident Students % In 2010 in 2010 es es Rate % Small Harbin 120,000 280,000 Boiler& 400,000 50.5 5.6 57,594 178 50 Taiping Shantytown Jiagedaqi 71,000 118,000 Shantytown 189,000 50.2 6.1 15,124 17 10 (IA Changed) Small Jiamusi 20,000 358,000 Boiler& 378,000 48.8 7.8 27,500 40 30 Shantytown Small Jidong Boiler, 70,000 40,000 110,000 49.2 10.0 16,550 12 7 (Cancelled) Shantytown & Migrant Shantytown Qitaihe 140,000 180,000 320,000 48.8 8.2 30,500 43 4 & Migrant Small Raohe 21,000 13,000 Boiler& 34,000 49.4 5.9 6,239 7 3 (Cancelled) Shantytown Small Boiler, Tongjiang 35,000 21,000 56,000 49.2 15.3 11,290 7 2 Shantytown & Migrant Yichun – 22,000 33,000 Shantytown 55,000 50.0 8.3 2,380 4 1 Tangwanghe Yichun- Xinqing 53,000 34,000 Shantytown 87,000 49.0 11.2 7,448 6 1 (Cancelled) 1,629,0 Total 552,000 1,077,000 49.5 8.7 174,625 314 108 00 % 34% 66% 100% 49.5% 8.7% 10.7% 1,398,0 New Total 408,000 990,000 49.6 8.6 144,388 289 97 00 % 29% 71% 100% 49.6% 8.6% 10.3% Note: Small boilers refers to households heated by small boilers; shantytown refers to residents in shantytown; migrant refers to new migrant population. Sources： PPTA Final Report in 2012, Table 4.38 and Table4.37 for Poverty Incident Rate.

12. The project originally aimed to close down 470 small boilers and would affect 2,075 workers from 9 subprojects (see Table 3). The scope changes will result in the closure of 374 small inefficient coal-fired boilers (including 3 additional boilers from Harbin Subproject) and affect 1,866 workers (of which 427 are full time workers and 1,439 are seasonal workers).

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Table 3：Small Boilers to Be Closed , the Number of Workers Affected , and Changes

Small Boilers Planned Affected Workers (person) Subproject to Be Closed Full Time Seasonal Total Harbin Taiping 18+3 0 54 54 Jiagedaqi 68 214 0 214 (IA Changed) Jiamusi 218 143 1,247 1,390 Jidong(Cancelled) 32 0 80 80 Qitaihe 15 0 30 30 Raohe(Cancelled) 19 0 36 36 Tongjiang 36 0 108 108 Yichun-Tangwanghe 16 70 0 70 Yichun-Xinqing 48 93 0 93 (Cancelled) Original Total 470 520 1,555 2,075 New Total 374 427 1,439 1,866 Source: Labor Retrenchment and Reemployment Plan ( LRRP).

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III. PROJECT POVERTY AND SOCIAL IMPACTS

A. Shift from Small Boilers to Centralized Heating

13. After the scope changes, the project of 6 subprojects will close down 371(+3) small inefficient coal-fired boilers. By September 2016, Jiagedaqi Subproject has not started project implementation yet but the other 5 subprojects have closed down 95+5 small boilers with 276 small boilers remaining to be closed in the future (see Table 4). Table 4: Summary of Small Boilers Closed in All Subprojects by September 2016

Small Boiler Small Boilers Small Boilers to Subproject Planned to Be % Completed Closed Be Closed Closed Harbin Taiping 18 +3 18+5 0 >100 Jiagedaqi 68 Not started yet 68 0 Jiamusi 218 18 200 8.23 Qitaihe 15 11 4 73.33 Tongjiang 36 36 0 100 Yichun- 16 12 4 75 Tangwanghe Total 371+3 95+5 276 25.60 Sources: povided by subproject IAs. 14. Locations of the small boilers closed and disposed are shown in Table 5. Most of the 95+5 small boilers have been dismantled and 11,563,974 m2 heating area served by centralized heating. Most boiler rooms are retained for other uses such as heat exchange stations (HES). Table 5: Small Boilers Closed and Disposed By September 2016

Total Heat Area Boiler No. Location/Owner Quantity 2 Boilers (m ) Rooms Harbin Chest 1 2 7094 Dismantled Retained Hospital Harbin No.2 2 2 5781 Dismantled Retained Hospital Harbin Blood 3 2 2890 Dismantled Demolished Center Centers for 4 Disease Control 2 5203 Dismantled Retained of Harbin City Family Apt 5 Building of Harbin 1 7432 Dismantled Demolish Yijiliugong District Heilongjiang 6 Engineering 6 44594 Dismantled Retained College 7 Harbin Engineering University 6 1210000 Dismantled Retained

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Total Heat Area Boiler No. Location/Owner Quantity 2 Boilers (m ) Rooms 8 Sankeshu Depot 2 230000 Dismantled Retained Shantytowns 500,000 - - Other District 1,000,000 - - Harbin Subtotal 18+5 3,012,994 - - Goals of Harbin 18 4,000,000 - - % Completed >100 75.32 - - 1 Qitaihe- Deke Clothing 1 612 Dismantled Retained 2 Taiyang Decoration 1 615 Dismantled Retained Removed to Retained Sanjiang other 3 Household 1 5000 place(fuel Appliances boiler) 4 Yongxing Public Bathroom 1 5000 Closed Retained Hongxiang Retained 5 2 1250 Dismantled Driving School 6 Qimei Water Plant 2 23000 Closed Retained Residential Building for Retained 7 2 26000 Closed Taoshan Coal Selection Plant Fushouyuan House for the Retained 8 1 20000 Closed Elderly One Hospital 62000 Ten Schools 163100 Shantytowns 1797000 Other District 1711000 Qitaihe Subtotal 11 3814577 Goals of Qitaihe 15 7600000 % Completed 73.33 50.19 Tongjiang – 1 Bianmao Zonghe 1 13500 Dismantled Greening Building West Wing 2 Building for 1 4300 Dismantled Retained Mingxin Park Xulanji 3 Development 1 12000 Dismantled Greening Building Residence for 4 Communication 1 5400 Dismantled Greening Bureau Jianye 5 1 17200 Dismantled HES Community 6 2-Floor Building in 1 4512 Dismantled Greening

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Total Heat Area Boiler No. Location/Owner Quantity 2 Boilers (m ) Rooms Fangchan Bungalow 7 Shiji Garden 2 80170 Dismantled HES 8 Central Hospital 1 10700 Dismantled HES Residence for 9 1 4900 Dismantled Greening Sports School Residence for 10 1 4800 Dismantled Greening Central Hospital Residence for 11 Land Cultivation 1 3000 Dismantled Retained Office Old Residence for 12 1 9300 Dismantled Retained Tax Bureau Firefighting Crew 13 1 2000 Dismantled Retained Office 14 Sanjiangcun Hotel 1 2100 Dismantled Retained 15 Huanbao Hotel 1 5100 Dismantled Greening Sino-Russian Residential Greening 16 1 5600 Dismantled Building Telecommunication Greening 17 1 4800 Dismantled Administration 18 Yiliangdian Service Building 1 5300 Dismantled Greening 19 Xintiandi Shopping Mall 1 11430 Dismantled Retained Residential Building and Greening 20 Administration Building of 2 10400 Dismantled Forestry Bureau Old Residential Building of Greening 21 Industrial and Commercial 1 2400 Dismantled Bureau 22 ShidaiJiayuan 1 9800 Dismantled Greening 23 Sifanghuayuan, Shopping Mall 2 34500 Dismantled HES 24 Xinxin Residential Area 1 24600 Dismantled Retained 25 Mingzhu Residential Area 2 2000 Dismantled HES Administration Building of Greening 26 1 3000 Dismantled Communication Bureau Administration Building of Greening 27 1 2700 Dismantled Traffic Police Brigade 28 Tianju Sugar Plant 1 4100 Dismantled Greening Thermal Insulation Board Greening 29 1 2000 Dismantled Factory 30 Pickles Factory 1 500 Dismantled Greening 31 WWTP 1 4800 Dismantled HES

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Total Heat Area Boiler No. Location/Owner Quantity 2 Boilers (m ) Rooms 32 Vegetable Base 1 3500 Dismantled Greening Ten Schools - 127600 Tongjiang Hospital - 21391 Shantytowns-Puxi - 30000 Shantytowns-Huifu - 22000 Other District - 2340000 Tongjiang Subtotal 36 2851403 Goals of Tongjiang 36 2700000 % Completed 100 >100 Tangwanghe - Hospital Dismantled 1 1 72136 HES Community No.1 Middle Dismantled 2 1 33259 HES School Community 3 Heating Company Community 1 6281 Dismantled Retained 4 Court Community 1 7808 Dismantled Retained 5 Beijian Community 1 39000 Dismantled Retained No.2 Middle Dismantled 6 1 38000 HES School Community 7 No.2 School Community 1 12000 Dismantled HES 8 Kindergarten Community 1 8500 Dismantled HES 9 Zhiyachu Boiler 1 29000 Dismantled HES 10 Gongchengerchu Boiler 1 11000 Dismantled HES 11 Sixiao Boiler 1 2483 Dismantled Retained Automobile transportation Dismantled Retained 12 1 18000 Company Other District - 722533 Tangwanghe 12 1000000 Subtotal Goals of Tangwanghe 16 1500000 % Completed 75 66.67 Small Boilers Closed Down of 18 365000 Jiamusi 7 Schools - 40000 5 Hospitals - 80000 Shantytowns - 400000 Jiamusi Subtotal 18 885000 Goals of Jiamusi 218 14800000 % Completed 8.25 5.97 Total 95+5 11563974

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Total Heat Area Boiler No. Location/Owner Quantity 2 Boilers (m ) Rooms Project Goals 371 36600000 % Completed 25.60 31.59 Sources: provided by subproject IAs.

B. Population Benefited from the Closure of Small Boilers

15. Population benefited from the closure of the small boilers are shown in Table 6. Shifting 95+5 small boilers to central heating has benefited 16 hospitals, 45 schools (with 84,151 students) and 560,373 residents from 154,453 households. During the project monitoring and evaluation, it is found that the total number of the benefited schools and hospitals in the original plan is the total number of the schools and hospitals in Harbin's urban areas rather than the number of schools and hospitals within the benefited (impacted) sub-project area. At present, the Harbin subproject benefited 14 schools with 51,938 students, accounting for 90.18% of the total 57,594 students expected to benefit. It is expected that the number of schools ultimately benefiting from the project will be less than the target of 289. Table 6: Directly Benefited HHs and Population by Sept. 2016

Doctors/ Teachers/ No Location/Owner Beds Students Residents HHs Staff Staff Harbin Chest 1 650 800 - - Hospital Harbin No.2 2 700 800 - - Hospital Harbin Blood 3 - 216 - - Center Centers for 4 Disease Control - 375 - - of Harbin City Family Apt 5 Building of Harbin - - - - 759 253 Yijiliugong District Heilongjiang 6 Engineering - - 13,000 1,200 - - College Harbin Engineering 7 28,938 3,078 University 8 Sankeshu Depot 1,500 - 6 Hospital 12 Schools 10,000 Shantytowns 72,000 18,000 Other District 128,000 32,000 14 202,259 50,253 Harbin Subtotal 7 Hospitals 51,938 Schools

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Doctors/ Teachers/ No Location/Owner Beds Students Residents HHs Staff Staff 178 400,000 - Goals of Harbin 50 Hospitals 57,594 Schools % Completed 14 90.18 7.87 50.56 - Qitaihe- Deke 1 ------Clothing 2 Taiyang Decoration ------Sanjiang 3 Household ------Appliances Yongxing Public 4 ------Bathroom Hongxiang 5 ------Driving School 6 Qimei Water Plant ------Residential Building 7 for Taoshan Coal - - - - 1,000 330 Selection Plant Fushouyuan House 8 500 for the Elderly One Hospital Ten Schools 7,310 Shantytowns 102,000 25,623 Other District 168,000 42,000 10 Qitaihe Subtotal 1 Hospital 7,310 271,500 67,953 Schools 43 Goals of Qitaihe 4 Hospital 30,500 320,000 - Schools % Completed 25 23.96 23.25 84.84 - Tongjiang – 1 Bianmao Zonghe - - - - 50 - Building West Wing 2 Building for - - - - 150 50 Mingxin Park Xulanji 3 Development - - - - 150 50 Building Residence for 4 Communication - - - - 150 50 Bureau Jianye 5 - - - - 300 100 Community 2-Floor Building in 6 Fangchan - - - - 200 60 Bungalow

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Doctors/ Teachers/ No Location/Owner Beds Students Residents HHs Staff Staff 7 Shiji Garden - - - - 50 20 8 Central Hospital 210 310 - - - - Residence for 9 - - - - 150 50 Sports School Residence for 10 - - - - 150 50 Central Hospital Residence for 11 Land Cultivation - - - - 150 50 Office Old Residence for 12 - - - - 150 50 Tax Bureau Firefighting Crew 13 - - - - 50 - Office 14 Sanjiangcun Hotel 20 1 15 Huanbao Hotel 20 1 Zhong’e Residential 140 42 16 Building Telecommunication 1 17 Administration Yiliangdian Service 160 64 18 Building Xintiandi Shopping 160 64 19 Mall Residential Building 170 62 and Administration 20 Building of Forestry Bureau Old Residential 60 20 Building of Industrial 21 and Commercial Bureau 22 ShidaiJiayuan 200 70 Sifanghuayuan, 600 320 23 Shopping Mall Xinxin Residential 300 160 24 Area Mingzhu Residential 30 12 25 Area Administration 30 1 Building of 26 Communication Bureau Administration 40 1 27 Building of Traffic Police Brigade

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Doctors/ Teachers/ No Location/Owner Beds Students Residents HHs Staff Staff 28 Tianju Sugar Plant 16 1 Thermal Insulation 12 1 29 Board Factory 30 Pickles Factory 12 1 31 WWTP 14 1 32 Vegetable Base 10 1 Tongjiang Hospital 198 320 Ten Schools 11,290 Shantytowns-Puxi 1200 300 Shantytowns-Huifu 650 200 Other District 51,000 16,146 Tongjiang 10 56,494 18,000 2 Hospitals 11,290 Subtotal Schools Goals of Tongjiang 2 Hospitals 11,290 7 Schools 56,000 - % Completed 100 100 >100 >100 - Tangwanghe - 1 70 171 - - 6600 2,200 Hospital Community No.1 Middle 2 - - 1,256 95 3300 1,100 School Community Heating Company 600 200 3 - - - - Community 4 Court Community - - - - 780 260 5 Beijian Community - - - - 3900 1,300 No.2 Middle 3780 1,260 6 - - - - School Community No.2 School 7 - - 1,368 80 1200 400 Community Kindergarten 8 - - 159 19 840 280 Community 9 Zhiyachu Boiler 3320 1240 Gongchengerchu 560 240 Sixiao Boiler 194 16 420 186 Automobile Transportation 920 320 Company Tangwanghe 1 Hospital 2977 4 Schools 45,000 14,850 Subtotal Goals of 1 Hospital 2380 4 Schools 55,000 - Tangwanghe % Completed 100 >100 100 81.81 - Small Boilers Closed 2320 340

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Doctors/ Teachers/ No Location/Owner Beds Students Residents HHs Staff Staff Down of Jiamusi 7 Schools 7000 5 Hospitals Shantytowns 200,000 50,000 Jiamusi Subtotal 5 Hospitals 7,000 7 Schools 202,320 50,340 Goals of Jiamusi 30 27,500 40 378,000 % Completed 16.67 25.45 17.50 53.52 Total 16 84,215 45 777,573 201,396 16 Project Goals 97 144,388 289 1,398,000 97 % Completed 16.49 58.32 15.57 55.62 16.49 Sources: provided by the subproject IAs.

C. Poverty Population Benefited from the Closure of Small Boilers

16. The project is expected to directly benefit about 120,000 poverty population (at poverty incident rate of 8.6%) of 34,000 poor households (including 1,200 poor households headed by women) (based on the data of 2010). The project will safeguard the livelihood of poor households through the heating tariff assistance provided by the local governments and implementing agencies. The poor households under the government’s minimum living standard security program (MLSSP), including poor single parent family headed by women, are subsidized 70% or more (80% in Jiamusi and 100% in Harbin for up to 45 m2) of heating tariff by the local governments and waived 100% of connection fee from the heating companies. 9,390 poor households with 37,440 people (including 988 poor households headed by women with 2,535 people) have received the assistance in the 5 subprojects, with details referring to Table 7. Table 7: Poverty Population Benefited by September 2016

Poverty Poverty Poverty Poverty HHs Population Subproject Heating Tariff Subsidy HHs Population Headed by Headed by Women Women Harbin Taiping 2,500 10,000 500 1,200 100% within 45 M2 Jiagedaqi CNY 2,000 provided by the Not Started Government Jiamusi 80% provided by the 3,000 12,000 216 648 Government Qitaihe CNY 1,100 provided by the 1,280 5,120 128 256 Government Tongjiang CNY 2,000, 100%provided 1,720 6,880 21 63 by the Heating Company Yichun-Tangwan CNY 1,000 provided by the 860 3,440 123 368 ghe Government Total 9,360 37,440 988 2,535 -

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Poverty Poverty Poverty Poverty HHs Population Subproject Heating Tariff Subsidy HHs Population Headed by Headed by Women Women Project Target 34,000 120,000 1,200 3,000 % Completed 27.53 31.20 82.33 84.50 Sources: provided by the subproject IAs.

D. Women Benefited from the Closure of Small Boilers

17. Small boiler operation is a heavy physical job and few women are employed for the position. The project creates job opportunities for women as heating bill collectors at heating bill collection stations to collect bills at users’ doors with a targeted female employment rate of 50% for this position by 2017 (baseline: 30%). By the end of September 2016, 73 female heating bill collectors have been hired. Female employment rates of the heating bill collector positon in all the subprojects have reached 90% or more, but the Qitaihe subproject has started to collect the heating tariff through the bank, with details referring to Table 8. Table 8: Female Heating Bill Collectors Hired by August 2015

Subproject Female Heating Bill Collector (person) % Harbin Taiping 16 90 Jiagedaqi Not Started Yet Jiamusi 20 98 Qitaihe Pay through the Bank -- Tongjiang 13 100 Yichun-Tangwanghe 24 100 Total 73 97 Sources: provided by the subproject IAs.

E. Women Benefited from the Removal of Household Stoves

18. Households stoves cause main problems such as : (1) respiratory diseases caused by poor indoor air quality due to small coal stoves used for cooking and heating; (2) death incidents caused by carbon monoxide poisoning every year due to household small coal stoves used for cooking and heating; (3) heating expenses of household small coal stoves are higher than central heating expenses; and (4) it is very easy for residents to catch a cold because it is hard to maintain a stable room temperature with small coal stoves. All these problems will be solved after switching to energy efficient centralized heating system from household stoves. 19. Household Questionnaire Survey conducted in the shantytown areas during the Project Preparatory Technical Assistanc (PPTA) period found that 90 (61.6%) households confirmed that cooking and dealing with stoves are mainly undertaken by women. 93.2% of the surveyed families spent at least one hour a day to add coal (sometimes with water) to the stoves, which excludes the time spent to watch the stoves. 20. Women stay at home longer than men. The subprojects have removed 106,850

15 Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report household stoves and benefited about 427,400 residents including 211,990 women (49.6%) as shown in Table 9. Switching to central heating system has resulted in a total time saving of 19,233,000 hours of women‘s housework (one hour a day for a heating season of 180 days in 6 monrhs). Table 9: Household Stoves Removed in Each Subproject by September 2016

Household Stoves Removed Residential Area Benefitted People Time Effect (HHs) Harbin Taiping 18,000 72,000 3,240,000 Jiagedaqi Not Started Yet Not Started Yet Not Started Yet Jiamusi 26,000 104,000 4,680,000 Qitaihe 42,000 168,000 2,543,400 Tongjiang 6,000 24,000 1,080,000 Yichun-Tangwanghe 14,850 59,400 2,673,000 Total 106,850 427,400 19,233,000 Household stoves 183,444 (275,165 / 9 x 6) removal target % completed 58.25 Sources: provided by the subproject IAs.

21. Household Questionnaire Survey conducted in the shantytown areas during PPTA also found that residents spent CNY 31.25 to 60 per square meter for a heating season, which is higer than the tarriff for centralized heating. Switching to the centralized heating system resulted in a total of CNY 160.275 million cost saving for 106,850 households in Qitaihe (cost saving CNY 1,500/HH, i.e. CNY 20 per square meter, accounting for 4% of the average household annual total income) by September 2016. 22. Women beneficiaries in the project area account for 49.6% (about 0.69 million). The project impacts on women more, especially women from shantytown, by the means include: (i) life convenience brought by the advanced heating method; (ii) improved living environment and life quality; (iii) reduced incidence of respiratory diseases related to indoor air pollution and unstable room temperature; (iv) reduced domestic chores related space heating by small coal-fired stoves; (v) reduced incidence of carbon monoxide poisoning and accidental fire, and (vi) job provisions during central heating system operation although such opportunities will not be plenty.

F. Affected Boiler Workers Retrenchment and Reemployment

23. The project implementation will result in the closing of about 371+5 small inefficient coal-fired boilers (see Table 1) with 1,866 workers affected (see Table 3). The 5 subprojects have closed down 95+5 boilers so far, and 346+26 workers were reemployed. Table 10 shows that Subproject Qitaihe has offered jobs to all the 30 affected workers and Subproject Yichun Tangwanghe has offered jobs not only to all the 70 affected workers but also created new positions for 26 people. 24. With the shift of heating supply method from small boilers to centralized heating, workers need to undertake training to acquire new skills and knowledge to operate the new

16 Heilongjiang Efficient District Heating Project Annual Social Impact Monitoring Report heating system. Training were provided by respective implementing agencies and supported by the local quality and technology inspection bureaus. Training topics include (i) pipeline maintenance and repair, (ii) machine maintenance and repair, and (iii) heat relay station operation and adjustment, and (iv) safety regulation. Training lasted 15 to 65 days (15 days in Subproject Yichun Tangwanghe, 30 days in Subproject Tongjiang, 35 days in subproject Jiamusi, 60 days in Subproject Harbin). Both full time and seasonal workers joined the technical training and took a new job position after receiving a certificate. As a matter of fact, the affected workers are preferred because of their valuable job experience.

Picture 1: Training Test(Tongjiang Subproject in September 2016)

Table 10： Labor Retrenchment and Reemployment by September 2016

Small Small Affected Labors(person) Subproject Boilers to Boilers Full Seasonal Total Reemployed Remaining % Be Closed Closed Time Completed Harbin Taiping 18+3=21 18+5 0 54 54 40+14 0 100 68 Not 214 0 214 0 214 0 Jiagedaqi StartedYet Jiamusi 218 18 143 1,247 1,390 84 1306 6.04 Qitaihe 15 11 0 30 30 30 0 100 Tongjiang 36 36 0 108 108 72+36 0 100 YichunTangwanghe 16 12 70 0 70 70+26 0 >100 Total 371+3 95+5 427 1,439 1,866 346+26 1,520 18.54 Source：Labor Retrenchment and Reemployment Plan (LRRP) and subproject IAs. 14 Boiler workers of Harbin and 36 workers of Tongjiang Subproject are retired.

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Picture 2: Certificate and Work Licence passed the Training Test(Tangwanghe Subproject in September-October 2015)

25. It is anticipated that remained 276 boilers will be closed during the next winter season (2017/2018) and 371+5 boilers will be all closed by then. (see Table 11 for details). Table 11：Small Boilers to Be Closed in Winter 2017/2018

Small Boilers to Small Boilers Small Boiler to Be Closed Remaining Subproject Be Closed Closed by December 2017 Small Boilers Harbin Taiping 18+3=21 18+5 0 0 Jiagedaqi 68 Not Started Yet 68 0 Jiamusi 218 18 200 0 Qitaihe 15 15 0 0 Tongjiang 36 36 0 0 YichunTangwanghe 16 12 4 0 Total 371+3 95+5 276 0 Sources: provided by the subproject IAs.

G. Public Awareness Enhancement Activities

26. A leading group of energy conservation and emission reduction at provincial, municipal or district levels is in charge of the public awareness enhancement activities on energy conservation and emission reduction. The week of 8-14 June is the Energy Conservation Campaigns Week nationwide each year (2016 event was the 26th) and 10 June is the nationwide Low-Carbon Day (2016 event was the 4th ) to enhance public awareness on limited resource availabilities, energy conservation and environment protection. Activities were organized in public places, communities and schools to encourage citizens and students to take low-carbon lifestyle of walking, cycling and riding by public transport system. In 2014, about a million of flyers and 100,000 brochures were distributed and 10,000 wide banners were displayed in the province. Newspaper, television and internet websites called on the duty of everyone to conserve energy and reduce emission. About 1400 messages were sent by Micro-blogs and about 780 messages were sent by weChat. In 2015, cities in Heilongjiang Province organized various public awareness campaigns on energy-saving and emission reduction. Experts explained to the public the formation of PM 2.5 and initiatives of tree planting, less or no festival fireworks were proposed to raise people consciousness to protect the air quality. It is encouraged to walk within 1 km, and to ride bicycle within 3 km, and to take public transport within 5 km for work, to shut down the office area air conditioning (except computer room and other special places); to close the public area lighting, to stop elevators for office buildings and other public facilities below 5 floors, elevators above 6 floors to stop at intervals, to stop the consumption of disposable office supplies and reduce standby power consumption of office equipment, and to stop driving private cars. Energy conservation awareness enhancement activities in the subproject cities have covered all the citizens including women and girls. 27. It is particularly worth mentioning that the Heilongjiang Provincial People's

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Government issued a "Special Action Plan of Air Pollution Control in Heilongjiang Province (2016-2018)" on March 11, 2016, with the main objectives including the overall improvement in ambient air quality in 2018 compared with that of the province in 2015, and heavily polluted days dropping significantly in major cities.  The annual average concentration of fine particulate matter (PM2.5) in Harbin reached 53 μg / m 3, decreased by 25%, 30%, 60% and 100% in three years respectively, and heavy pollution days decreased by 50%, 21 days or so.  The annual average concentration of fine particulate matter (PM2.5) in Qitaihe is reduced by 10% (the other four non-project cities also have specific indicators);  Cities (regions) that have reached the national ambient air quality standards are stable or slightly improved. 28. One of the main tasks of the Action Plan is to close down small boilers. By the end of 2017, in addition to maintain the necessary emergency responding and , peaking load regulating heating boilers, all of the coal-fired boilers below 10 T2/h in the city level or above will be dismentled. By the end of 2018, the central heating penetration rate above the city level will reach 80% or above. By the end of 2017, in Harbin, all the 607 sets of 10 T/h or below coal-fired heating boilers will be eliminated in Harbin; coal-fired boilers below 20 T/h which can be enteren into the central heating net, and scattered heating boilers and production boilers in nine industrial parks will be dismantled; 5 enterprises will be removed from the urban area; 14 coal-fired boilers will be dismantled; and new coal-fired steam boilers below 35 T/h and coal-fired hot water boilers below 29 mw will be banned to built. It is expected to increase 39 million square meters central heating capacity by implementation of the 4 heat resource projects.

2 Ton vapor refers to the boiler’s heat supply capacity, representing by T/h. For example, 1-ton boiler as we usually described, does not mean the weight of the boiler is 1 ton, but the vapor amount produced per hour by the boiler.

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IV. PROJECT POVERTY AND SOCIAL IMPACTS MONITORING RESULTS

29. The subproject IAs have assigned one staff in each office in charge of the monitoring of project poverty and social impacts as shown in Table 12. Table 12：Staff Assignment for Project Poverty and Social Impacts Monitoring

Subproject Staff Name Contact Number Harbin Taiping Mr. Wang 0451-82463916 Jiagedaqi Mr. Wang 15245758388 Jiamusi Mr. Ju 0454-8289309 Qitaihe Mr. Shan 0464—9259533 Tongjiang Mr. Sun 13603639114 Yichun Tangwanghe Mr. Cao 13845824088 Sources: provided by the subproject IAs.

30. Project poverty and social impacts monitoring results are shown in Table 13. ADB loan funded Heilongjiang Project has implemented the project according to the poverty and social impact indicators required.

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Table 13： Monitoring Results of Project Poverty and Social Impacts

By September 2016 Subproject Yichun-Tang No. Harbin Taiping Jiagedaqi Jiamusi Qitaihe Tongjiang Total Monitoring Content wanghe 1 Boilers Closed Down 18+5 0 18 11 36 12 95+5 Target 18 68 218 15 36 16 371 % Completed >100 0 8.25 73.33 100 75 25.60% 2 Stoves Removed (HH) 18,000 0 26,000 42,000 6,000 14,850 106,850 Target 275,165 / 9 x 6 = 183,444 % Completed 58.25% 3 Heating Coverage(m2) 3,012,994 0 885,000 3,814,577 2,851,403 1,000,000 11,563,974 Target 4,000,000 6,000,000 14,800,000 7,600,000 2,700,000 1,500,000 36,600,000 % Completed >75.32 0 5.97 50.19 >100 66.67 31.59% 4 People 0 202,320 271,500 56,494 45,000 777,573 202,259 Benefited(Person) Target 400,000 189,000 378,000 320,000 56,000 55,000 1,398,000 % Completed 50.56 53.52 84.84 >100 81.81 55.62% 5 Poverty Households 2,500/10,000 Benefited 0 3,000/12,000 1,280/5,120 1,720/6,880 860/3,440 9,360/37,440 (HH/person) Target 34,000/120,000 % Completed 27.53%/31.20% 6 Poverty Households Headed by Women 500/1,200 0 216/648 128/256 21/63 123/368 988/2,535 Benefited (HH/person) Target 1,200/3,000 % Completed 82.33%/84.50%

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Subproject Yichun-Tang No. Harbin Taiping Jiagedaqi Jiamusi Qitaihe Tongjiang Total Monitoring Content wanghe 7 Schools 0 14 7 10 10 4 45 Benefited (School) Target 178 17 40 43 7 4 289 % Completed 7.87 0 17.50 23.25 >100 100 15.57% 8 Students Benefited 51,938 0 7,000 7,310 11,290 2,977 84,215 (Person) Target 57,594 15,124 27,500 30,500 11,290 2,380 144,388 % Completed 90.18 0 25.45 23.96 100 >100 58.32% 9 Hospitals Benefited 7 0 5 1 2 1 16 (Hospital) Target 50 10 30 4 2 1 97 % Completed 14 0 16.66 25 100 100 16.49% 10 Female Bill 90% (16) 0 98%(20) Pay through Bank 100%(13) 100%(24) 73 Collectors % % Target 50% 50% 50% 50% 50% 50% 50% % Completed >50% 0 >50% <50% >50% >50% >50% 11 Labor Reem-ployed 40+14 0 84 30 72+36 70+26 346+26 Target 54 214 1,390 30 108 70 1,866 % Completed 100 0 54.10 100 100 >100 18.54% 12 Residents Benefited 1,398,000 Target (female) 690,000 % Completed 100% 13 Meetings held(Times) 1 Target (times) 5 % Completed 20% Sources: provided by the subproject IAs.

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V. Gender Action Plan Implementation Status

31. Women beneficiaries in the project area account for 49.6% (about 0.69 million). The project impacts on women more, especially women from shantytown, and job opportunities will be created especially for women such as the heating bill collectors. By end of Sept. 2016, 385,676 women, accounting for 50% of the total 777,573 people, has participated in energy conservation and awareness campaigns; 988 poor households headed by females has been covered into the distrct heating system withouty net increase in emissions expanded, accounting for 11% of the total 9,360 poor households; and female employment rates of the heating bill collector positon in all the subprojects have reached 90% or more, except the Qitaihe subproject which has started to collect the heating tariff through the bank. More details for GAP implementation status is as below (Table 14):

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Table 14: Gender Action Plan Implementation Status Table

Data Resources Organization Project Outputs Activities Target Indicators and Reporting Implementation Status Involved Mechanism Organize energy Worked with local women’s federations conservation awareness About 800,000 and organized energy conservation campaigns targeting female (100%) in awareness campaigns to 777,573 women in partnership with subproject area by 2017 people including 385,676 women. the women’s federation

Decommission small 45 schools with 84,215 children and 16 Project management polluting neighborhood 174,625 children in hospitals are connected the district office, implementing boilers and supply heat by 314 schools and 108 heating systems of the project. Coverage of district Reports from project agencies, and cleaner centralized district hospitals covered by the heating system in management office project heating systems new heating eight project cities implementation System by 2017 without net increase consultant and in emissions Ensure heating assistance women’s federation 9,360 poor households including 988 i expanded to 37,000 poor At least 1,300 households with females as head of households, households headed by household including 1,300 poor women assisted by households headed by 2017 women through 70% subsidy of heating tariff by the local government and 100% waiver of connection fee from the heating company Remove 275,166 Domestic chores Project management household working hour reduced office, implementing As of September 2016, 106,850 stoves and connect to by one hour by 2017 agencies, and household stoves have been removed. Energy efficient heat district heating systems by project generation capacity in 2017 No cases of carbon implementation three project citiesii monoxide poisoning and consultant and improved fire accidents reported women’s federation by 2017

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Data Resources Organization Project Outputs Activities Target Indicators and Reporting Implementation Status Involved Mechanism Organize a session on To be completed “gender At least one session Reports from project responsive district participated by a management office Project management heatingiv in female heat user office, implementing partnership with the agencies, and women’s federation in the project knowledge sharing implementation Private sector sessions between private consultant and participate in district and state-owned district women’s federation heating in the two heating companies project cities promotediii Organize a session on “gender At least one session To be completed responsive district participated by a female heating” in partnership representative of heat with the women’s users federation in the regional conference on district heating 50% of heating bill collectors as women by As of the end of 2015, all subprojects Promote the creation of 2017 (baseline: under implementation has more than job opportunities for 30%) 50% women as heating bill collectors women as heating bill except Qitaihe, where the heating tariff collectors has started to be collected through the bank. Source: Data provided by project implementation agencies and PMO.

i The original eight project cities include Harbin, Jiagedaqi, Jiamusi, Jixi, Qitaihe, Raohe, Tongjiang, and Yichun. However, Jixi and Raohe dropped out of the project in 2015. ii The project cities include Harbin, Raohe, and Tongjiang. However, Raohe dropped out of the project in 2015. iii The project cities include Raohe and Tongjiang. However, Raohe dropped out of the project in 2015.

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iv Topics include, but not limited to, gender responsive human resource management strategy, service delivery for women and poor, and heating access and affordability for poor households headed by women.