Environmental Impact Assessment (DRAFT)

Project Number: 44021 May 2012

People‘s Republic of China: Integrated Development of Key Townships in Central Liaoning Project

Prepared by the Government of Liaoning Province for the Asian Development Bank (ADB).

ABBREVIATIONS

AADT - Annual Average Daily Traffic ADB - Asian Development Bank AIDS - Acquired Immunity Deficiency Syndrome AP - Affected Person ASL - Above sea level CCF - Climate Change Fund Consolidated Environmental Impact CEIA - Assessment DFR - Draft final report DMF - Design and Monitoring Framework EHS - Environmental Health and Safety EIA - Environmental Impact Assessment EMO - External monitoring organization EMP - Environmental Management Plan EPB - Environmental Protection Bureau FSR - Feasibility Study Report FYP - Five-Year Plan GHG - Greenhouse Gas GRM - Grievance Redress Mechanism HH - Household HIVS - Human Immunodeficiency Virus IA - Implementing Agency IEE - Initial Environmental Examination IFC - International Finance Corporation IPCC - Intergovernmental Panel on Climate Change MEP - Ministry of Environmental Protection NDRC - National Development and Reform Commission NGO - Non-governmental Organization O&M - Operation and Maintenance PAH - Project affected households PAP - Project affected persons PMO - Project Management Office PPMS - Project Performance Management System PPTA - Project Preparatory Technical Assistance PRC - People's Republic of China RP - Resettlement Plan RRP - Report and Recommendation of the President SEPP - Soil Erosion Prevention Plan SIA - Social Impact Assessment TA - Technical Assistance TGR - Traffic Growth Rate TOR - Terms of Reference USD - United States Dollar WWTP - Wastewater Treatment Plant

CURRENCY EQUIVALENTS Currency Unit – Chinese Yuan (CNY) CNY1 = $.1515 $1 = CNY6.6

WEIGHTS AND MEASURES km2 – square kilometer m2 – square meter m3/day – cubic meter per day mu – Chinese unit of area (15 mu = 1 hectare)

NOTES

In this report, "$" refers to US dollars.

This environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB‘s Board of Directors, Management, or staff and may be preliminary in nature. Your attention is directed to the ―Terms of Use‖ section of this website.

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

CONTENTS

EXECUTIVE SUMMARY ...... 2

A. INTRODUCTION ...... 2 B. ENVIRONMENTAL DUE DILIGENCE ...... 4 C. CONCLUSION ...... 8 I. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 9

A. OVERVIEW ...... 9 B. LAWS, REGULATIONS, GUIDELINES, AND STANDARDS ...... 9 1. LAWS ...... 9 2. REGULATIONS AND PROCLAMATIONS ...... 10 3. GUIDELINES AND STANDARDS ...... 10 C. PEOPLE‘S REPUBLIC OF CHINA INSTITUTIONAL FRAMEWORK ...... 11 D. ASIAN DEVELOPMENT BANK ENVIRONMENTAL REQUIREMENTS...... 11 E. INTERNATIONAL AGREEMENTS ...... 11 F. CATEGORY OF THE ASSESSMENT ...... 12 G. AREA OF INFLUENCE AND EVALUATION STANDARDS FOR SUBPROJECTS ...... 13 1. AREA OF INFLUENCE ...... 13 2. SENSITIVE RECEPTOR AREAS ...... 13 H. ASSESSMENT STANDARDS ...... 14 I. AREA OF INFLUENCE AND EVALUATION STANDARDS FOR SUBPROJECT SECTORS ...... 17 1. ROAD SUBPROJECTS ...... 17 2. WASTE WATER TREATMENT SUBPROJECT ...... 17 3. HEATING SUBPROJECT ...... 18 J. ENVIRONMENTAL HEALTH AND SAFETY GUIDELINES ...... 18 II. DESCRIPTION OF THE PROJECT ...... 20

A. JUSTIFICATION AND RATIONALE FOR THE PROJECT ...... 20 1. THE NEED FOR THE PROJECT ...... 20 2. THE PLANNING AND POLICY CONTEXT ...... 20 B. PROJECT SUBPROJECTS ...... 21 1. WASTEWATER TREATMENT PLANTS AND RELATED FACILITIES COMPONENT ...... 21 2. DISTRICT HEATING COMPONENT ...... 24 3. ROADS AND RELATED FACILITIES COMPONENT ...... 25 4. CAPACITY DEVELOPMENT AND INSTITUTIONAL STRENGTHENING...... 30 III. DESCRIPTION OF THE ENVIRONMENT—BASELINE ...... 32

A. PROVINCIAL ENVIRONMENTAL SETTING ...... 32 B. COMPONENT LOCALITIES ENVIRONMENTAL SETTING ...... 33 1. XINMIN CITY (UNDER SHENYANG MUNICIPALITY) ...... 33 2. QINGSHUITAI AND XINGLONGTAI TOWNS OF SHENBEI NEW DISTRICT ...... 37 3. HEISHAN COUNTY (JINZHOU CITY) ...... 41 4. HUANREN COUNTY (BENXI CITY) ...... 43 5. GAIZHOU CITY ...... 47 6. SIHE TOWN (FUXIN CITY) ...... 49 7. WAITOUSHAN TOWN (BENXI CITY) ...... 50

IV. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 53

A. SCREENING AND SCOPING OF POTENTIAL IMPACTS ...... 53 B. POSITIVE IMPACTS AND ENVIRONMENTAL BENEFITS ...... 54 1. DIRECT POSITIVE IMPACTS ...... 54 2. BENEFICIARIES ...... 55 3. CLIMATE CHANGE ...... 56 C. IMPACTS ASSOCIATED WITH PROJECT LOCATION, PLANNING, AND DESIGN ...... 57 1. DIRECT LOSSES FROM THE PROJECT‘S FOOTPRINT ...... 57 D. ENVIRONMENTAL MANAGEMENT MEASURES DURING THE PRE-CONSTRUCTION PHASE ...... 60 E. IMPACTS AND MITIGATION MEASURES DURING THE CONSTRUCTION PHASE ...... 61 1. CONTRACTOR PERFORMANCE AND SITE MANAGEMENT – ALL SUBPROJECTS ...... 61 2. ROADS AND STORMWATER AND SEWER DRAINS CONSTRUCTION ...... 61 3. BRIDGES AND CULVERTS ...... 65 4. WASTEWATER TREATMENT PLANTS ...... 66 5. HEATING PIPELINES AND HES ...... 67 F. IMPACTS AND MITIGATION MEASURES DURING THE OPERATIONAL PHASE ...... 67 1. OPERATION OF ROADS, DRAINS AND BRIDGES ...... 67 2. OPERATION OF WASTEWATER COLLECTION AND TREATMENT SUBPROJECT ...... 75 3. OPERATION OF HEATING PIPELINES AND HEAT EXCHANGE STATIONS ...... 79 G. HEALTH AND SAFETY (CONSTRUCTION AND OPERATIONAL PHASES) ...... 80 1. ROAD SUBPROJECTS - HEALTH AND SAFETY ...... 81 2. WWTP SUBPROJECT - HEALTH AND SAFETY ...... 82 3. HEATING SUBPROJECT - HEALTH AND SAFETY ...... 83 H. INDIRECT, INDUCED AND CUMULATIVE IMPACTS ...... 84 1. INDIRECT AND INDUCED IMPACTS – ROAD SUBPROJECTS ...... 84 2. INDIRECT AND INDUCED IMPACTS – WASTE WATER TREATMENT SUBPROJECT ...... 84 3. INDIRECT AND INDUCED IMPACTS – HEATING EXPANSION SUBPROJECT ...... 85 4. CUMULATIVE IMPACTS ...... 86 V. ENVIRONMENTAL CONSIDERATION OF ASSOCIATED AND PERIPHERAL FACILITIES ...... 87

A. OPERATIONAL ENVIRONMENTAL PERFORMANCE OF THE CHP ...... 87 B. DEMOLITION OF SMALL BOILERS ...... 89 C. CLOSURE OF EXISTING WWTP ...... 90 D. TREATMENT AND UTILIZATION OF SLUDGE ...... 90 E. TREATMENT OF SEWAGE AND STORMWATER CARRIED IN PIPES CONSTRUCTED WITH ROADS ...... 91 VI. CONSIDERATION OF ALTERNATIVES ...... 93

A. WITHOUT-PROJECT ALTERNATIVES ...... 93 B. ALTERNATIVES ANALYSIS COMMON TO ALL COUNTIES/TOWNS ...... 94 1. CONSIDERATION OF ALTERNATIVES ...... 94 2. ROADS ...... 94 3. STORM WATER ...... 96 4. WASTEWATER TREATMENT ...... 97 5. DISTRICT HEATING ...... 97 C. ALTERNATIVES PARTICULAR TO INDIVIDUAL SUBPROJECT ...... 98 1. XINMIN SUBPROJECT ...... 98 2. SHENBEI SUBPROJECT ...... 99 3. HEISHAN SUBPROJECT ...... 100 4. HUANREN SUBPROJECT ...... 100 5. WAITOUSHAN SUBPROJECT ...... 101 VII. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE ...... 103

A. LEGISLATIVE FRAMEWORK FOR CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE .. 103 B. INFORMATION DISCLOSURE ...... 103 C. CONSULTATION ...... 104 1. FIRST ROUND OF CONSULTATION ...... 104 2. SECOND ROUND OF CONSULTATION ...... 106 3. FUTURE CONSULTATION ...... 107 VIII. GRIEVANCE REDRESS MECHANISM ...... 108

A. CURRENT PRACTICE ...... 108 B. PROPOSED MECHANISM ...... 108 C. TYPES OF GRIEVANCES EXPECTED AND ELIGIBILITY ASSESSMENT ...... 109 D. GRM PROCEDURE AND TIMEFRAME ...... 109 IX. ENVIRONMENTAL MANAGEMENT PLAN ...... 112

A. INTRODUCTION ...... 112 B. EMP IMPLEMENTATION RESPONSIBILITIES ...... 112 C. ROLE OF THE LOAN IMPLEMENTATION ENVIRONMENTAL CONSULTANTS ...... 115 D. ROLE OF EXTERNAL ENVIRONMENTAL EXPERT (EEE) ...... 115 E. SUMMARY OF POTENTIAL IMPACTS AND MITIGATION MEASURES...... 116 F. ASSESSMENT OF PROJECT READINESS ...... 131 G. ENVIRONMENTAL MONITORING ...... 133 1. MONITORING PROGRAM ...... 133 H. MITIGATION MEASURES AND MONITORING COSTS ...... 138 I. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE ...... 141 1. CONSULTATION DURING PROJECT PREPARATION ...... 141 2. FUTURE CONSULTATION PLAN ...... 141 J. INSTITUTIONAL STRENGTHENING AND TRAINING ...... 142 K. REPORTING AND SUPERVISION ...... 145 L. MECHANISM FOR FEEDBACK AND ADJUSTMENT ...... 147 X. CONCLUSIONS AND RECOMMENDATIONS ...... 149

A. ENVIRONMENTAL ASSESSMENT FINDINGS ...... 149 B. ENVIRONMENTAL HEALTH AND SAFETY ...... 150 C. RESETTLEMENT AND ECONOMIC DISPLACEMENT ...... 150 D. CLIMATE CHANGE ...... 151 E. RISKS AND ASSURANCES ...... 151 F. USE OF IRREPLACEABLE RESOURCES ...... 153 G. FOLLOW-UP MONITORING AND ENVIRONMENTAL MANAGEMENT REQUIREMENTS ...... 153 H. CONCLUSION ...... 153

APPENDIX 1. REFERENCES APPENDIX 2. GREENHOUSE GAS SAVINGS APPENDIX 3. CONDITIONAL APPROVAL OF FUXIN CHP PLANT APPENDIX 4. SHENBEI NEW DISTRICT COMMITMENT LETTER FOR SLUDGE UTILIZATION

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EXECUTIVE SUMMARY

A. Introduction

1. This Consolidated Project Environmental Impact Assessment (CEIA) was prepared for the proposed Integrated Development of Key Townships in Central Liaoning Project (the Project) in Liaoning Province of the People‘s Republic of China (PRC). The proposed project aims to promote balanced and environmentally sustainable urbanization by supporting the development of 7 districts/cities/counties in central Liaoning Province, PRC. The Project will support wastewater management, energy efficient district heating, urban road and bridge rehabilitation and construction, and related services. The proposed Project will build on ADB‘s Liaoning Small Cities and Towns Project 1 and will demonstrate clustered urban agglomeration while incorporating environmental and social considerations in planning and development.

2. At present the infrastructure facilities in the subproject areas are poor. Residents in the towns and townships suffer from non-existent or poor roads and poor sanitary and living conditions. Road-related problems include poor road networking (characterized by missing road sections and inadequate distribution and segregation of traffic between the trunk roads and secondary roads), substandard road structures and road base treatments, poor quality road drainage, and a lack of safe integration of pedestrians, non-motorized traffic, and motorized traffic. Heating supply related problems include inadequate coal-fired boilers used for decentralized heating services, polluting air both outdoor and indoor, with consequent harm to residents‘ health. Surface water pollution is currently caused by poorly performing wastewater collection and treatment, and inadequate sludge disposal. The receiving surface water bodies are heavily polluted, at class V or worse of the PRC Environmental Quality Standards for Surface Water.

3. The Project will support wastewater management, energy efficient district heating, urban road and bridge rehabilitation and construction, and related services. Improved and extended road systems will reduce traffic congestion, improve road safety conditions, and facilitate the movement of residents. The unclear function of urban roads within the county seat networks will be clarified and the interaction of pedestrians, non-motorized traffic, and motorized traffic rationalized through both engineering works (roads, paths, kerbs) and community involvement in safety campaigns. Improved wastewater disposal systems in two townships will result in cleaner and healthier living environment for town residents; and reduced contamination of rivers and waterways. The expansion of centralized domestic heating system will bring cheaper heating to the residents of a new urban area totaling 3 million square meters without requiring the combustion of additional coal equivalents and replacing existing domestic heating stoves. Both the people and the local air quality will benefit significantly.

4. The road, wastewater management, and heating supply components will promote achievement of local development plans. The project is in line with the Liaoning Provincial Government‘s Twelfth Five-Year Plan and 2020 City Master Plans. Liaoning‘s Twelfth Five- Year Plan calls for economic development, environmental protection, and building environmental and ecological friendly new urban areas and town settlements. The project

1 ADB. 2009. Liaoning Small Cities and Towns Development Demonstration Sector Project. Manila.

2 components also contribute to the 2020 City Master Plans for the five project cities.

5. Project components. The proposed project includes four components: (i) one wastewater treatment plant (WWTP); (ii) district heating; (iii) road, drainage, and bridge subprojects; and (iv) capacity development and institutional strengthening. The built subprojects will be located in seven cities, counties, and districts in Liaoning Province and will involve 15 towns and townships. This breakdown is illustrated in Table ES.1 below. The capacity development and institutional strengthening will cover all implementing administrations.

Table ES.1: Subprojects by Sector and Location Numbers of Subproject District/County/City Towns/Townships Subproject Sector with Subprojects Xinmin City (Shenyang Roads, drainage, and Xinmin Subproject 5 City) bridges Roads, drainage, and Shenbei New Shenbei New District 2 bridges District Subproject (Shenyang City) Wastewater treatment Heishan Roads, drainage, and Heishan Subproject 3 County(Jinzhou City) bridges Huanren Manchu Roads, drainage, and Huanren Subproject Autonomous 1 bridges County(Benxi City) Gaizhou City (Yingkou Roads, drainage, and Gaizhou Subproject 2 City) bridges Fuxin Subproject Fuxin City (Fuxin City) 1 District heating Benxi High-Tech Benxi High-Tech District Roads, drainage, and 1 Subproject (Benxi City) bridges Total 15

6. Wastewater Treatment Plant. The component includes construction of a wastewater treatment plant (WWTP) in Qingshuitai Town. The domestic feasibility study report (FSR) provides wastewater flow forecasts for the township for year 2015 and 2030 based on its projection of land use characteristics with the consideration of population growth, per capita water consumption rate, water supply ratio, and water return ratio (the percentage of consumed water that turns into wastewater). The treatment capacity of the WWTP is planned to be 10,000m3/d for Qingshuitai Township.

7. Wastewater generated in the service area will be dominated by domestic wastewater. The FSR makes prediction of the WWTP influent quality based on the data of general influent quality received by other small and medium-sized municipal WWTP in neighboring area. The effluent quality of the WWTP is required to meet the Class I (A) Standards of Urban Wastewater Treatment Pollutants Discharge Standards (GB 18918- 2002). The receiving waters are part of the Liao River Basin and the required effluent quality is in accordance with the requirements of the Liao River Basin Water Pollution Control Plan (2006-2010) endorsed by the State Congress in March 2006.

8. The WWTP is estimated to produce 584 t/a of sludge with 80% water content. The sludge generated during the treatment process will be dewatered on-site (to 80% water content) and transported to Shenyang Sludge Treatment Plant for composting.

9. District Heating. Space heating for the urban area of Fuxin City comes from several

3 heat sources, including combined heat and power plants (CHPs), large coal-fired boilers houses, small boiler houses, and home heating stoves. The new Sihe Town is currently being developed for urban expansion of Fuxin. The provision of a district heating facility for Sihe Town is a choice between many small inefficient boilers or to take heat from the existing Fuxin CHP. The Fuxin CHP Plant has a total heating capacity of 6 million m2 of heating area. Currently, it covers 2.7 million m2 and still has remaining capacity of over 3 million m2 of heating area. Thus, the CHP has spare heating capacity equivalent to the planned urban area of Sihe.

10. The component includes the construction of (i) 12 water-water heating exchange stations (HES); (ii) 12.613 kilometers (km) of primary heating pipeline; and (iii) 19.097 km of secondary heating pipeline. The design and construction of the district heating system will comply with the Fuxin Urban Master Plan and Urban District Heating Master Plan.

11. Upon completion of the subproject, 15 small local boilers and a large number of domestic stoves will be decommissioned, since they will be replaced by the new heating pipelines.

12. Roads and Related Infrastructure Component. The urban infrastructure component will rehabilitate 73.4 km of urban roads and street alleys, and build 52.5 km of new urban trunk, secondary and branch roads, associated storm water and sanitary sewers, urban bridges (6) and culverts (12), and street lights in six cities/counties. The engineering designs have been carried out in accordance with the PRC‘s design standards and respective city/town master plans. Road and safety design considerations which will be incorporated into the urban infrastructure component, include enhanced traffic markings and signage, pedestrian lanes, bus stops, protection barriers, traffic safety education and traffic safety management.

13. In selected new or upgraded roads, where alignments are compatible and suitable with drainage infrastructure plans, road construction will be combined with pipe laying to install conduits for wastewater (sewage) and stormwater. Some road components will have both stormwater and wastewater pipelines attached and some will have only stormwater pipes. The sewer pipes all connect to existing municipal WWTPs. Stormwater will be discharged to local water bodies through trash racks and scouring/erosion control structures.

14. Capacity Development and Institutional Strengthening. The Project will help strengthen urban infrastructure management capacity. Currently, Liaoning Provincial Government (LPG) does not have very effective or systematic management tools to help the proposed townships in urban infrastructure management. The Project will help the townships introduce effective management concepts, establish fundamental management systems, develop management procedures, set up and strengthen appropriate institutions to implement and operate the urban infrastructure management systems, and improve the overall management capacity within LPG.

B. Environmental Due Diligence

15. The Project underwent initial appraisal during project preparation by ADB and was classified as Category A on the basis of ADB‘s Rapid Environmental Assessment. This is the highest category, requiring a full EIA document. The ADB safeguard policy document (Safeguard Policy Statement (2009)) requires a number of special considerations, including: (i) project risks and respective mitigation measures and project assurances; (ii) project level Grievance Redress Mechanism including documentation in the EMP; (iii) definition of the project area of influence; (iv) physical cultural resources damage prevention analysis; (v) climate change mitigation and adaptation; (vi) occupational and community health and safety requirements (including emergency preparedness and response); (vii) economic

4 displacement that is not part of land acquisition; (viii) biodiversity conservation and natural resources management requirements; (ix) provision of sufficient justification if local standards are used; (x) ensuring adequate consultation and participation; and (xi) ensuring that EMP includes implementation schedule and (measurable) performance indicators.

16. The subproject environmental assessment documents upon which this consolidated EIA is based have been prepared under the provisions of PRC Environmental Impact Assessment Law of 2003 and the PRC Management Guideline on EIA Categories of Construction Projects (2008). All domestic EIAs were submitted to County, District and City EPBs for initial approval. The local EPB recommendations were forwarded to the Liaoning Provincial EPB for final approval. All domestic EIAs were approved in May 2012 by the Provincial EPB.

17. Environmental impacts. The major potential environmental impacts have been identified for each sector and are summarized in Table ES.2. While the full range of potential environmental effects will be discussed in this CEIA, these impacts and the measures to avoid or mitigate them will be the main emphasis.

Table ES.2: Assessment Scope Subproject Assessment Scope

Construction: Noise, dust, wastewater and solid waste will be generated to varying degrees during the construction of all subprojects. Erosion and sedimentation from construction sites and from borrow pits and spoil disposal will be generated to varying degrees during the construction of all subprojects. All subprojects Surface water. Waterways may be affected by runoff from construction sites, including the potential for leakage of polluting materials. Waterways and banks may be especially affected by bridge construction. Environmental Health and Safety (EHS) considerations apply to construction workers and safety risks and nuisance to community during construction. Operation: Air quality will potentially be affected by increased traffic volumes on upgraded roads or the introduction of a traffic stream on new roads – although the rehabilitation of existing urban roads (partly unpaved), and the construction of new roads, are anticipated to reduce urban emissions by reducing traffic bottlenecks and reducing dust. Noise environment will potentially be affected by increased traffic volumes on upgraded roads or the introduction of a traffic stream on new roads. Noise sensitive locations such as residential buildings, schools and medical facilities Road, drainage and may be affected. bridge subprojects Surface water. Waterways and banks may be affected by bridge construction. Road drainage and sewers to be constructed under project roads will be connected to existing WWTPs. EHS. A potential community safety risk during operation relates to traffic safety on project roads. Associated Facilities. Due diligence considerations of the treatment and ultimate disposal of wastewater and stormwater carried in the pipes laid in conjunction with the roadworks. Air quality may be impacted by odor produced by a range of processes and WWTP locations at the WWTP.

5 Subproject Assessment Scope Land resources/ecology may potentially be affected by the location of WWTP on the outskirts of urban areas (and therefore impinging on agricultural land) and close to waterways. Noise environment. Continuous operation required of WWTP poses potential noise impacts for nearby residences. Surface water. WWTP will decrease the pollution load to receiving rivers and contribute to water quality improvement (currently worse than class V). During operation, wastewater discharge and sludge disposal could affect water and soil quality if not properly managed. Groundwater. Potential impacts on groundwater may come from leakages/overflows from plant. EHS. Safety, health and environmental risks from insufficiently trained operators, or implementing agencies who fail to conduct regular inspections of the project facilities to repair defects promptly, and comply with the PRC State Administration of Worker Safety Laws and Regulations. Associated Facilities. Due diligence considerations of the centralized sludge treatment and composting facility, and the laying of new feeder sewer pipes. Air quality. The project will help improve air quality in Fuxin by shifting the heating supply from inefficient small heat-only boilers and household stoves to a more energy-efficient, CHP-based district heating system. EHS. Safety, health and environmental risks from insufficiently trained Heating pipelines and operators, or implementing agencies who fail to conduct regular inspections HES of the project facilities to repair defects promptly, and comply with the PRC State Administration of Worker Safety Laws and Regulations. Associated Facilities. Due diligence considerations of the CHP supplying the heat, and decommissioning/demolition of superseded small boilers

18. The project components (urban roads and alleys, wastewater treatment plants and sewer networks, district heating network and heat exchange stations) are generally small to medium scale. The subprojects are located in urban and peri-urban areas and not in or near sensitive or legally protected areas. The Project is not expected to destroy natural habitat or lead to loss of biodiversity or environmental services. The majority of water bodies in the project area have been canalized with concrete banks and bed. In the urban areas these have very low water quality and minimal in-stream ecology.

19. During construction, potential impacts include soil erosion, noise and vibration, fugitive dust, solid wastes, and community and occupational health and safety risks. Overall, construction-related impacts are localized, short term, and can be effectively mitigated through the application of good construction and housekeeping practices and implementation of construction phase community and occupational health and safety plans. Construction activities (i.e. paving a sidewalk) at one site will be near the site of a cultural relic and, although construction will not encroach on the site or its curtilage, special attention will be paid and strict procedures followed so that no off-site impacts arise and any unexpected finds can be identified and protected if they are discovered during construction.

20. During operation, improved road networks will reduce traffic congestion, improve road safety conditions, and facilitate the movement of residents. The potential for new roads to open up areas for unplanned development or exploitation has been addressed by designing road subcomponents in connectivity networks to rationalize rather than extend traffic access. Land use planning and development controls will respond to monitored traffic emissions and noise levels.

21. The operation of the new WWTP will discharge high quality of treated effluent and will contribute substantially to the clean-up of receiving water bodies. Additionally, the

6 development of a new WWTP will occasion the closure and rehabilitation of currently used, environmentally unsound wastewater treatment arrangements. In the operational phase of WWTP subcomponent, sludge treatment and beneficial utilization will be implemented, as well as odor control.

22. The heating subproject, providing pipes to new areas, will provide centralized heating to apartment blocks which will re-house substandard flatted areas. The new system will replace inefficient and polluting small local boilers resulting in net reductions in all emission levels.

23. Environmental management plan. A comprehensive environmental management plan EMP has been developed for the design, construction, and operation phases of the Project. The plan is appropriate for the environmental safeguarding of the planned works and forms part of a comprehensive set of environmental management documents and will be incorporated into bidding documents for subproject construction. The EMP includes institutional responsibilities and costs for implementing the mitigation measures and the monitoring requirements.

24. Public consultation and grievance redress mechanism (GRM). One round of information disclosure and two rounds of public consultations conducted during project preparation indicated that the majority of the affected people had a positive attitude toward the Project and believed it would benefit the local economy, the quality of life, and the local environment. A GRM has been established to deal with public complaints related to project activities during project implementation and operation.

25. Health and safety, and emergency response. The project activities‘ potential impacts on community and occupational health and safety were analyzed and corresponding mitigation measures have been proposed in the CEIA. Emergency response mechanisms to deal with dangerous or hazardous material spills due to traffic accidents will be established by the implementing agencies of all road subprojects, and trained emergency response teams set up before project implementation.

26. Main environmental risks and assurances. A set of environmental risks, and the assurances required to satisfactorily address them, have been identified in the CEIA. The following assurances, addressing the identified risks, will be incorporated into the loan documentation as loan covenants to ensure that the measures are implemented in a timely and complete fashion:

(i) A commitment that surplus spoil should be transported to suitable spoil disposal sites approved by the EPB; (ii) A commitment that sewage and stormwater conducted in pipes along roadways will be appropriately managed before discharge; (iii) A commitment that the IAs and operators of road networks will develop appropriate emergency preparedness and response mechanisms; (iv) A commitment that before construction commences on Shenbei and Gaizhou road subprojects, a full predictive analysis of sensitive receptor sites along all roads will be carried out and funds for noise mitigation at affected properties will be reserved; (v) A commitment from Liaoning provincial government and the Shenbei New Area administration to adequately resource, train and support management and operational staff of the WWTP in environmental awareness and environmental management skills. (The TA has designed and scoped a capacity building program to support this); (vi) A commitment from Liaoning provincial government and the Shenbei New Area administration for the preparation and implementation of time-bound closure and rehabilitation plans for the existing WWTP;

7 (vii) A commitment from Liaoning provincial government and the Shenbei New Area administration to implement the treatment and utilization of WWTP sludge for composting and agricultural use; (viii) The demolition of replaced small local boilers need to have approved EIAs and the demolition activities undertaken in compliance with standards for occupational health and safety and disposal of demolition wastes – especially with regard to the identification, handling and disposal of asbestos containing materials (ACM); (ix) Part time staff at the 15 small local boilers in Fuxin will be retained at the same employment rates by the parent companies; Caretakers at the existing WWTP facility at Qingshuitai will be provided with employment in the new plants.

27. An additional assurance, in order to comply with SPS 2009 on GHG emissions, is for that portion of the operation of the Fuxin CHP plant corresponding to the heat used in the Fuxin (Sihe) heating subproject be annually quantified and monitored for three years of the operations period.

28. The overriding assurance required is that the Liaoning provincial government will ensure that the full range of effective measures set out in the CEIA and EMP are undertaken, and guarantees that the environmental management provisions and the environmental monitoring plan will be implemented effectively during project implementation, and that the implementation reports of the environmental management and monitoring plan in accordance with ADB requirements will be submitted in a timely fashion. Part of this monitoring and management commitment will be a commitment to implement and maintain an appropriate Grievance Redress Mechanism for all project counties and districts and covering the construction and operation of all project subprojects.

C. Conclusion

29. The CEIA concludes that the Project will have substantial environmental and socio- economic benefits. To ensure successful and environmental friendly implementation of the Project, the EMP covers all the relevant aspects such as institutional arrangements for environmental management and supervision, inspection and audit, and environmental monitoring, reporting and training. As long as the environmental mitigation and management measures defined in the EMP are properly implemented, all adverse environmental impacts associated with the project will be prevented, eliminated, or minimized to an acceptable level.

8 I. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

A. Overview

30. The subproject environmental assessment documents upon which this consolidated environmental impact assessment (EIA) is based have been prepared under the provisions of the People‘s Republic of China‘s (PRC) EIA Law of 2003 and the PRC Management Guideline on EIA Categories of Construction Projects (2008). These have strengthened existing EIA requirements and expanded their application to cover development plans. The release of the 2006 Interim Guideline on Public Participation in EIA has also been a significant development that provides for opportunities to involve the public in the EIA process.

31. This legislative framework lists the actions required to undertake effective EIA: (i) collect and monitor environmental quality conditions of the project‘s location and its neighboring regions; (ii) analyze and evaluate the project to assess pollution sources and discharge of pollutants; (iii) predict beneficial and adverse effects on surface water, ground water, atmosphere, ecological environment, acoustic environment, environmental hygiene of the affected areas during periods of construction, and operation of the project; (iv) present pollution prevention measures that reduce the adverse effects, and estimate the costs of mitigation and environmental management of the project; (v) analyze the existing environmental risk during the period of construction and operation of the project; (vi) collect public views and comments on the construction of the project; (vii) analyze environmental economic impacts, especially related to auxiliary projects and cumulative pollution loads; and, (viii) draw up a program for environment control, supervision and training.

32. The EIA under PRC law is also supported and guided by the following legislative provisions.

B. Laws, Regulations, Guidelines, and Standards

1. Laws

33. The following PRC laws govern the way in which the environmental management of the project must be implemented, in order to proceed. This suite of laws includes:

(i) Environmental Protection Law of the People's Republic of China, adopted on December 26, 1989. (ii) Law of the People's Republic of China on Evaluation of Environmental Effects, adopted on October 28, 2002. (iii) Law of the People's Republic of China on Prevention and Control of Water Pollution, adopted on February 28, 2008. (iv) Law of the People‗s Republic of China on the Prevention and Control of Atmospheric Pollution, adopted on April 29 2000. (v) Law of the People's Republic of China on Noise Pollution of the Environment, adopted on October 29, 1996. (vi) Land Administration Law of the People's Republic of China, adopted on January 1, 1999. (vii) Law of the People's Republic of China on Promoting Clean Production, adopted on January 1, 2003. (viii) PRC Law on Prevention of Solid Waste Pollution (April 1996).

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2. Regulations and Proclamations

34. The following PRC regulations support the environmental laws, particularly as they relate to, and are administered by the government of Liaoning Province:

(i) Management of Environmental Protection in Construction Projects, promulgated by Decree No. 253 of the State Council of the People's Republic of China on November 29, 1998. (ii) Enforcement Regulations of Law on the Prevention and Control of Water Pollution of the People's Republic of China, promulgated by Decree No. 284 of the State Council of the People's Republic of China on March 20, 2003. (iii) Compendium of China‘s Ecological Construction and Environmental Protection, issued on June 1, 2004. (iv) Circular of Conducting Environmental Supervision of Traffic Engineering, (2004) No. 314. (v) Circular of Environmental Impact Assessment of Highway and Railway Construction Projects (light standard rail included) on Issues Concerning Environmental Noise (2003) No. 94 issued by State Environmental Protection Administration of the PRC. (vi) Circular of Strengthening Management of Environmental Impact Assessment against Risks, (2003) No. 152 issued by State Environmental Protection Administration of the PRC. (vii) Interim Measures on Public Participation in Environmental Impact Assessment, promulgate on March 18, 2006 by State Environmental Protection Administration of the PRC. (viii) Management of Environmental Protection in Traffic Construction Projects, (2003) No. 5 issued by Ministry of Communications. (ix) PRC Regulations of Hazardous Waste Management Permit (July 2004).

3. Guidelines and Standards

35. The following PRC guidelines and national standards support the implementation of environmental laws and set the levels of environmental performance required for relevant activities:

(i) Technical Guidelines for Environmental Impact Evaluation General Principles (HJ/T2.1-93). (ii) Technical Guidelines for Environmental Impact Evaluation - Air Environment (HJ2.2-2008). (iii) Technical Guidelines for Environmental Impact Evaluation - Surface Water Environment (HJ/T2.3-93). (iv) Technical Guidelines for Environmental Impact Evaluation - Acoustic Environment (HJ/T2.4-2009). (v) Technical Guidelines for Environmental Impact Evaluation - Non-polluting Ecological Impact (HJ/T19-1997). (vi) Specifications for Environmental Impact Evaluation of Highways (JTG B03- 2006).

10 C. People’s Republic of China Institutional Framework

36. The institutional framework for the EIA approval process in the PRC is summarized in the matrix below.

Responsible Departments Scope of work Liaoning Provincial EPB (i) EIA evaluation, including compliance with appropriate laws, regulations and standards. (ii) Final EIA Approval

County, District and City EPBs Environmental management and supervision during project cycle, including the management * In this report, these are referred to as ―local EPB‖. and supervision of the implementation and fulfillment of the environmental protection/mitigation measures and environmental monitoring. Source: PMO

37. All domestic EIAs have been submitted to county, district, and city Environment Protection Bureaus (EPBs) for the first stage of the approval process. The local EPB recommendations were forwarded to the Liaoning Provincial EPB. All domestic EIAs were approved in May 2012 by the Provincial EPB.

D. Asian Development Bank Environmental Requirements

38. The project underwent initial appraisal during project preparation and was classified as Category A on the basis of ADB‘s Rapid Environmental Assessment. This is the highest category, requiring a full EIA document. The ADB safeguard policy document (Safeguard Policy Statement (2009)) requires a number of special considerations, including (i) project risks and respective mitigation measures and project assurances; (ii) project level grievance redress mechanism including documentation in the environmental management plan (EMP); (iii) definition of the project area of influence; (iv) physical cultural resources damage prevention analysis; (v) climate change mitigation and adaptation; (vi) occupational and community health and safety requirements (including emergency preparedness and response); (vii) economic displacement that is not part of land acquisition; (viii) biodiversity conservation and natural resources management requirements; (ix) provision of extensive sufficient justification if local standards are used; (x) ensuring adequate consultation and participation; and (xi) ensuring that EMP includes implementation schedule and (measurable) performance indicators.

E. International Agreements

39. The PRC is a signatory of a large number of international agreements relevant to environment protection. Those with direct application to the project, along with the date of signing by the PRC, include:

(i) Convention on Biological Diversity, 29 December 1993. To develop national strategies for the conservation and sustainable use of biological diversity. (ii) Ramsar Convention on Wetlands of International Importance Especially as Waterfowl Habitat, 21 December 1975. To stem the progressive encroachment on and loss of wetlands now and in the future, recognizing the fundamental ecological functions of wetlands and their economic, cultural, scientific, and recreational value. (iii) Kyoto Protocol to the United Nations Framework Convention on Climate

11 Change, 23 February 2005. To further reduce greenhouse gas emissions by enhancing the national programs of developed countries aimed at this goal and by establishing percentage reduction targets for the developed countries; (iv) Montreal Protocol on Substances That Deplete the Ozone Layer, 1 January 1989. To protect the ozone layer by controlling emissions of substances that deplete it. (v) United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, 26 December 1996. To combat desertification and mitigate the effects of drought through national action programs that incorporate long-term strategies supported by international cooperation and partnership arrangements. (vi) United Nations Framework Convention on Climate Change, 21 March 1994. To achieve stabilization of greenhouse gas concentrations in the atmosphere at a low enough level to prevent dangerous anthropogenic interference with the climate system. (vii) UNESCO Convention Concerning the Protection of the World Cultural and Natural Heritage, 1985. To integrate the practice of heritage conservation in PRC with that being done around the world.

F. Category of the Assessment

40. The PRC EIA regulations classify different sectors on the basis of anticipated potential impacts and assigns different levels of EIA. For the sectors involved in this project, and at the scales planned, roads subproject require a full ―EIA Report‖, while heating and wastewater treatment require a lower level of EIA treatment, the ―EIA Table‖.

41. The ADB guidelines for the EIA categorization of projects provides the following criteria:

(i) Category A. A proposed project is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment is required.

(ii) Category B. A proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination is required.

42. The project underwent initial appraisal during project preparation and was classified as Category A on the basis of ADB‘s Rapid Environmental Assessment. This is the highest category, requiring a full EIA document. In compliance with ADB‘s Safeguard Policy Statement (2009), 2 a consolidated project EIA was prepared using (i) feasibility study reports, and (ii) subproject EIAs prepared by local environmental impact institutes in conformance with PRC regulations. The PRC legislative provisions for the EIA of these sectors require the higher standard of EIA documentation for roads and a lower level for

2 ADB. 2009. Safeguard Policy Statement. Manila.

12 wastewater treatment and heating.

G. Area of Influence and Evaluation Standards for Subprojects

1. Area of Influence

43. The area of influence of each subproject for both construction and operational impact assessments, and according to environmental parameters is set out in Table I.1 below.

Table I.1: Area of Influence Assessment Subproject Area of Influence Item Air 200 meter (m) area on both sides from road centre line. Buildings on both sides within 200m from the road centre line or Sound 200m radius from intersections and flyovers. Noise sensitive Road, drainage environment locations such as residential buildings, schools, kindergartens and and bridge hospitals shall be given priority for assessment. subprojects Waterways and banks affected by bridge construction. Surface water Runoff from roads and discharge from drains in operation. Construction sites, stockpile areas, borrow pits and any spoil Soil stability disposal sites. Taking the project major pollutant emission point as centre, 100m- Air radius area. Ecology Facility ―footprint‖ and pipeline corridors. At boundary line of proposed project site, and at noise sensitive Sound point (residential area and village) within 200m from the boundary environment line. WWTP All receiving waters and any downstream beneficial uses. Water Surface water mixing distance 200m downstream from discharge (for monitoring). Due diligence of existing WWTP removal and rehabilitation. Groundwater Areas which might receive leakages/overflows from plant Construction sites, stockpile areas, borrow pits and any spoil Soil stability disposal sites. Related Environmental review of centralized sludge treatment facility facilities Dust affected areas up to 50m during construction. Air Due diligence of heating source Heating pipelines Sound Buildings on both sides within 15m from the HESs. and HES environment Due diligence of heating source Related Environmental review of Fuxin combined heat and power (CHP) facilities plant which is used as the heat source

2. Sensitive Receptor Areas

44. Sensitive receptor sites for impacts from the road construction and operation and WWTP operation have been identified in the subproject environmental impact assessment (EIA). These comprise nearby residential, community, and educational facilities. For the road

13 components, these often relate only to a ―typical‖ or ―worst-case‖ road. 3 For these subprojects therefore the sensitive receiver sites examined are not exhaustive, and are indicative only. These same sites have been used to establish baseline air quality and noise levels and they are also the locations of predictive modeling for air quality and noise impacts of roads so that comparative levels of impacts can be assessed.

45. Sensitive receiver sites along roads not assessed will need to be identified before construction commences, monitored during initial operations, and provided with appropriate impact mitigation measures. These provisions are included in the consolidated EMP (see Chapter VIII) and will be required as project assurances (see Chapter IX).

H. Assessment Standards

46. In PRC EIA requirements, ambient levels of air, noise, and water quality in the proposed works area determine the appropriate category for point source or impacting emissions and effluent standards for the construction and operational phases of built infrastructure. However, the World Bank Group Environmental Health and Safety (EHS) guidelines4 (see below) are based on best practice construction and operational procedures. Both the PRC standards and EHS guidelines will be used in the assessments.

Table I.2: Ambient Air Quality Grade II Standard

Pollutant Time Standard (mg/m3) EHS5 (mg/m3)

Annual average 0.06

SO2 Daily average 0.15 0.125-0.05 (0.02 guideline)

Unit hour average 0.50

Annual average 0.10 0.07-0.03 (0.02 guideline) PM10 Daily average 0.15 0.075-0.15 (0.05 guideline)

Annual average 0.08 0.04 guideline

NO2 Daily average 0.12

Unit hour average 0.24 0.20 guideline

Daily average 4.0 n/a CO Unit hour average 10.0 n/a . 47. According to the Technical Specifications for Urban Area Ambient Noise Applicable Area Classification (GBT 15190-94), the area within 200m on both sides of road or road

3 This is the case for the 45 individual road components in the Xinmin subproject (3 roads analysed), the 24 individual road components for Shenbei (2 roads analysed), and the 4 individual road components in the Gaizhou (1 analysed). 4 World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines, World Bank, Washington. 5 World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines, World Bank, Washington.

14 junction should comply with the corresponding provisions in Acoustic Ambient Quality Standard (GB3096-2008) according to the classification of the area. The area mainly serving for cultural and educational institutions shall comply with Class 1 standard, and the residential, commercial and industrial mixed area shall comply with Class 2 standard. Lower standards apply for industrial areas and major roads. Standards are listed in Table I.3.

Table I.3: Acoustic Ambient Quality Standards (Equivalent Sound Level: LAeq: dB)

PRC Standard 6 Applicable Area Day Night EHS Class Areas needing extreme quiet, such as convalescence 0 50 40 areas Area mainly for residence, cultural and educational 1 55 45 55 45 institutions 2 Residential, commercial and industrial mixed area 60 50

3 Industrial area 65 55 70 70 4 Area on both sides of urban road traffic trunk line 70 55 . 48. For water quality assessment, the determining standard will be Surface Water Ambient Quality Standard (GB3838－2002). This standard is set out in Table I.4. The class IV standard is the minimum required runoff standard for road construction and operation in an urban environment. Class III and V are the relevant classifications of the receiving waters for the Shengbei WWTP subprojects. There is no EHS guideline or target for water quality in this context.

Table I.4: Surface Water Ambient Quality Class IV Standard (Unit: mg/L)

Standard DO IMn BOD COD NH3-N (GB3838-2002) – Grade III ≥5 ≤6 ≤4 ≤20 ≤1.0 (GB3838-2002) – Grade IV ≥3 ≤10 ≤6 ≤30 ≤1.5 (GB3838-2002) – Grade V ≥2 ≤15 ≤10 ≤40 ≤2.0 Source: EIA for Shenbei Subproject and road subprojects, 2011

49. In the construction phase, air pollutants from dust and earthworks should comply with the Grade II standard specified in Air Pollutant Comprehensive Emission Standard (GB16297-1996).

50. Construction noise will be assessed against the standards in Construction Site Noise Limits, which are set out in Table I.5.

Table I.5 : Construction Site Noise Limit (Unit: Leq[dB(A)])

Noise Limit Construction Period Major Noise Source Day Night Earthwork and stone Bulldozer, excavators and loader 75 55 work Pile driving is Piling Pile driving machines 85 prohibited

6 World Bank Group 2007, ibid.

15 Noise Limit Construction Period Major Noise Source Day Night

Structure Concrete mixer, vibrator and electric saw 70 55

Finishing Hoist and lifter 65 55

51. Construction activities will probably cause vibration impact, and should comply with the Standard for Urban Area Environmental Vibration (GB10070－88). The details are shown in Table I.6. The interchange and road works of the project are located near both sides of traffic trunk line, so the project shall comply with the fifth standard listed in the table.

Table I.6: Vertical (Z) Vibration Standard Value for Various Urban Areas (Unit: dB)

Scope of applicable area Day Night

Special residential area 65 65

Residential, cultural and educational area 70 67

Mixed area and commercial center 75 72

Industrial centralized area 75 72

Both sides of traffic trunk line 75 72

Both sides of railway main line 80 80

52. In the operational phase of the built infrastructure of the project, vehicle emissions will be controlled by many PRC standards, the operation of which will be facilitated by the outputs for Traffic Intelligent Management Systems and Traffic Environmental Information Data Acquisition Systems. Relevant vehicle emission standards include the Light-duty Automobile Pollutant Emission Limit and Measurement Method (I) (GB18352.1-2001) and Light-duty Automobile Pollutant Emission Limit and Measurement Method (II) (GB18352.2- 2001); Vehicle-used Self-ignition Engine Emission Pollutant Emission Limit and Measurement Method (GB17691-2001); Limits and Measurement Methods for Exhaust Pollutants from Positive Ignition (P.I.) Engines of Vehicles and Vehicles equipped with P.I. Engines (GB14762-2002); Motorcycle and Light Motorcycle Exhaust Pollutant Emission Limit and Measurement Method (idle condition) (GB14621-2002); Motorcycle Exhaust Pollutant Emission Limit and Measurement Method (operation condition) (GB14622-2002); and Light Motorcycle Exhaust Pollutant Emission Limit and Measurement Method (operation condition) (GB18176-2002).

53. The roads, intersections, and transport hubs of the project will be assessed during the operational phase in the context of the Class 2 standard specified in the Industrial Enterprise Site Noise Standard GB12348-2008. These are set out in Table I.7.

16 Table I.7: Industrial Enterprise Site Noise Standard/ Social Life Ambient Noise Emission Standard (Unit: Leq[dB(A)]) Classification Day Night 2 60 50 3 65 55 4 70 55 EHS7 70 70

I. Area of Influence and Evaluation Standards for Subproject Sectors

1. Road Subprojects

54. The scope of investigation are the areas 200 meters (m) on both sides of central line of roads. This covers the critical acoustic environment and includes the sensitive receptors of dense residential areas, schools and hospitals. The Environmental Quality Standard for Noise Acoustic Environment (GB3096-2008) will be the relevant PRC impact standard. During construction, Noise Limits for Construction Site (GB12523－1990) will be the relevant assessment standard.

55. Similarly the investigation and evaluation of ambient air is determined 200m by both sides of the proposed road‘s central line. The Ambient Air Quality Standard (GB3095-1996) and its Grade II standard shall be implemented within the area in the evaluation.

56. Wastewater produced during road construction will be assessed against the standard Grade III of Environmental Quality Standard for Surface Water (GB3838-2002) to ensure its suitability for draining into rivers and channels.

2. Waste Water Treatment Subproject

57. The construction of the pipeline network will be in residential areas and other public areas, therefore, dust pollution caused by construction shall be controlled to keep the quality of ambient air. The standard pertaining to this scope of assessment is Grade II of Ambient Air Quality Standard (GB3095-1996). Pipe-laying will also temporarily affect the acoustic environment, which will extend to sensitive receptors along the pipe alignments (Noise Limits for Construction Site (GB12523－1990)).

58. The effluent quality of the WWTP is required to meet the Class I (A) Standards of Urban Wastewater Treatment Pollutants Discharge Standards (GB 18918-2002). The required effluent quality is in accordance with the requirements of the Liao River Basin Water Pollution Control Plan (2006-2010) endorsed by the State Congress in March 2006. The area of influence will need to cover downstream water quality and its potential impact on downstream users. Additional standards pertaining to noise, odor and air emissions will extend the terrestrial area of influence beyond the site boundary. Relevant standards for assessment include:

(i) Standard grade II of new pollution source of Integrated Emission Standard of

7 World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines, World Bank, Washington.

17 Air Pollutants (GB16297-1996). (ii) Standard grade II of Emission Standard for Odor Pollutants (GB14554－93); (iii) Discharge Standard for Municipal Wastewater (CJ3082-1999). (iv) Noise Limits for Construction Site (GB12523－1990). (v) Standard grade II of Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008). (vi) Grade II of Emission Standard of Air Pollutants for Coal-burning, Oil-burning, Gas-fired Boiler (GB 13271-2001) will be implemented for waste gas of boilers used in WWTP.

3. Heating Subproject

59. The applicable standards, codes, design and construction guidelines of the district heating system include ―Urban Heating Network Design Standard‖ (CJJ34-2010) and ―Technical Regulation on Urban Pre-insulated Bonded Directly Buried Heating Pipeline‖. In addition, the design and construction of district heating system will comply with the Fuxin Urban Master Plan and Urban District Heating Master Plan.

60. For the demolition of superseded boilers and stoves, where asbestos or asbestos containing material (ACM) proves to be present, the applicable international guidelines for the demolishing and disposal of asbestos and ACM are: the World Bank EHS (Good Practice Note: Asbestos: Occupational and Community Health Issues); WHO Policy and Guidelines; and ISO/FDIS 16000-7: Indoor air—Part 7: Sampling strategy for determination of airborne asbestos fiber concentrations.

J. Environmental Health and Safety Guidelines

61. ADB‘s Safeguard Policy Statement (2009) requires projects to apply pollution prevention and control technologies and practices consistent with international good practices as reflected in internationally recognized standards such as the World Bank Group‘s Environmental, Health and Safety Guidelines.

62. The principles and standards of the World Bank Group Environmental, Health and Safety Guidelines (2007) are used by the ADB‘s Safeguards Policy. The general guidelines, in company with the Industry Sector Guidelines, will provide the context of international best practice and will contribute to establishing targets for environmental performance. The sector guidelines referenced were: General EHS Guidelines (covering occupational health and safety and community health and safety) and Water and Sanitation sector guidelines8. The air, noise and water quality standards in the EHS guidelines will also provide justification for the use throughout of PRC standards.

63. Occupational and community health and safety, as laid out in the EHS guidelines, will be a cross-cutting assessment element for all infrastructure subprojects.

64. The EHS Guidelines acknowledge the PRC standard GB 18918-2002 (Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant) as internationally

8 IFC/World Bank Group 2007, Environmental, Health, and Safety Guidelines Waste Management Facilities, Washington December 10, 2007. IFC/World Bank Group 2007, Environmental, Health, and Safety Guidelines Water and Sanitation, Washington. IFC/World Bank Group 2007, Environmental, Health, and Safety Guidelines Plantation Crops, Washington.

18 acceptable standard. For noise quality, PRC standards are more stringent than internationally accepted standards defined in the World Bank Group‘s EHS Guidelines. For air quality the EHS Guidelines are slightly lower than the relevant PRC standards.

65. In other areas, PRC standards are not comparable to standards suggested in the EHS Guidelines. Some ambient air quality standards, including NO2 and H2S, are defined for different time periods (exposures), and are thus not directly comparable. PRC ambient acoustic quality standards are defined for categories not directly attributable to the classification of the World Health Organization. However, the standard limits are not significantly different.

66. Where EHS standards exist for parameters and are relevant, they will be used in parallel with PRC standards in this assessment.

19 II. DESCRIPTION OF THE PROJECT

A. Justification and Rationale for the Project

1. The Need for the Project

67. The project will address the urgent needs for infrastructure development and improvement and environmental management in development priority districts/counties and towns/townships.

68. At present the infrastructure facilities in the subproject areas are poor. Residents in the towns/townships suffer from non-existent or poor roads and poor sanitary and living conditions. Road related problems include poor road networking (characterized by missing road sections and inadequate distribution and segregation of traffic between the trunk roads and secondary roads), substandard road structures and road base treatments, poor quality road drainage, and a lack of safe integration of pedestrians, non-motorized traffic, and motorized traffic. Heating supply related problems include inadequate coal-fired boilers used for decentralized heating services, polluted air both outdoor and indoor, with consequent harm to residents health. Surface water pollution is currently caused by poorly performing wastewater treatment and inadequate sludge disposal. The receiving surface water bodies are heavily polluted, at class V or worse of the PRC Environmental Quality Standards for Surface Water.

69. Improved and extended road systems will reduce traffic congestion, improve road safety conditions, and facilitate the movement of residents. The function of urban roads is unclear within the county seat networks will be clarified and the interaction of pedestrians, non-motorized traffic, and motorized traffic rationalized through both engineering works (roads, paths, kerbs) and community involvement in safety campaigns. Improved wastewater disposal systems in Qingshuitai and Xinglongtai townships in Shenbei New Area will result in cleaner and healthier living environment for town residents; and reduced contamination of rivers and waterways. The expansion of centralised domestic heating system in Sihe Township, Fuxin City, will bring cheaper heating to the residents of a new urban area totalling 3 million square meters (m2) without requiring the combustion of additional coal equivalents and replacing existing domestic heating stoves. Both the people (see beneficiaries below) and the local air quality will benefit significantly.

2. The Planning and Policy Context

70. The road, wastewater management, and heating supply components will promote achievement of local development plans. The project is in line with the Liaoning Provincial Government‘s Twelfth Five-Year Plan and 2020 City Master Plans. Liaoning‘s Twelfth Five- Year Plan calls for economic development, environmental protection, and building environmental and ecological friendly new urban areas and town settlements. The project components also contribute to the 2020 City Master Plans for the five project cities of Shenyang, Xinmin, Jinzhou, Benxi, and Fuxin.

71. The project aligns with the Asian Development Bank‘s PRC Country Partnership

20 Strategy9. The strategy identifies urban infrastructure development as a priority investment sector, and the sustainable and low environmental impact urban development is a focal area. The project also complies with the development agenda of environmentally sustainable growth and inclusive economic growth promoted in ADB‘s long-term strategic framework 2020. 10 The project supports Millennium Development Goal 7 by improving the environmental sustainability of the participating counties through appropriate treatment and disposal of wastewater.

B. Project Subprojects

72. The proposed project includes four components: (i) one wastewater treatment plant (WWTP); (ii) district heating; (iii) road, drainage, and bridge subprojects; and (iv) capacity development and institutional strengthening. The subprojects are located in seven cities, counties, and districts in Liaoning Province and will involve 17 towns and townships. This breakdown is illustrated in Table II.1 below.

Table II.1: Location of Subprojects by Sector Numbers of Subproject District/County/City Towns/Townships Subproject Sector with Subprojects Xinmin City (Shenyang Xinmin Subproject 5 Roads City)

Shenbei New Shenbei New District Roads 2 District Subproject (Shenyang City) WWTP Heishan Heishan Subproject 3 Roads County(Jinzhou City) Huanren Manchu Huanren Subproject Autonomous 1 Roads County(Benxi City) Gaizhou City (Yingkou Gaizhou Subproject 2 Roads City) Fuxin Subproject Fuxin City (Fuxin City) 1 Heating Benxi High-Tech Benxi High-Tech District 1 Roads Subproject (Benxi City) Total 15

1. Wastewater Treatment Plant and Related Facilities Component

73. The component includes construction of one WWTP in Qingshuitai Town. The planning horizon of the WWTP is from 2011 to 2030. The domestic feasibility study report (FSR) provides wastewater flow forecasts for Qingshuitai for year 2015 and 2030 based on its projection of land use characteristics with the consideration of population growth, per capita water consumption rate, water supply ratio, and water return ratio (the

9 ADB. 2012. Country Partnership Strategy (2011–2015): People‘s Republic of China. Manila. 10 ADB 2008, Strategy 2020, The Long-Term Strategic Framework of the Asian Development Bank 2008-2020. Manila.

21 percentage of consumed water that turns into wastewater). The medium term wastewater flow forecasts for Qingshuitai Township are a daily amount of 10,518 cubic meter (m3) and the treatment capacity of the WWTP is proposed to be 10,000m3/d. The relevant specifications are summarized in Table II.2 below. The locations and layout of the sewerage system of the WWTP are in Figures II.1 below. It can be seen that the location of the new plant will be on a new site distant and downstream of the current plant.

Table II.2: Summary of Wastewater Treatment Plants

Wastewater Wastewater Pipeline Capacity Lifting Town Status 3 Summary of Works (m /d) Pumping Pipe Material Pipe Length Station Construction of a 18.744 km, new WWTP and including related wastewater 15.626 km of Qingshuitai New HDPE double wall 10,000 1 pipeline network; DN 400, 2.633 Town WWTP corrugated pipe discharge of treated km of DN 500, effluent to Chang 0.485 km of River DN 700 Source: EIA for Shenbei Subproject, 2011

Figure II.1: Location of the Qingshuitai WWTP and Sewerage Network

74. No monitoring data of wastewater quality are available for Qingshuitai Township. Wastewater generated in the service area will be dominated by domestic wastewater. The FSR makes prediction of the WWTP influent quality based on the data of general influent quality received by other small and medium-sized municipal WWTP in

22 neighboring area. Further verification of the design influent quality parameters will be undertaken during the detailed design phase, including lab tests if deemed necessary.

75. The effluent quality of the WWTP is required to meet the Class I (A) Standards of Urban Wastewater Treatment Pollutants Discharge Standards (GB 18918-2002). The required effluent quality is in accordance with the requirements of the Liao River Basin Water Pollution Control Plan (2006-2010) endorsed by the State Congress in March 2006. The predicted influent quality and required applicable effluent standard of the WWTP in Qingshuitai Township is listed in Table II.3.

Table II.3: Predicted Influent and Required Applicable Effluent Standard of Qingshuitai Township WWTP Item Predicted Influent Required Applicable Effluent COD (mg/l) 340 ≤50 BOD5 (mg/l) 170 ≤10 SS (mg/l) 160 ≤10 NH4-N (mg/l) 25 ≤5(8)* Total Nitrogen (mg/l) 35 ≤15 Total Phosphate (mg/L) 3 ≤0.5 PH 6.0-9.0 6.0-9.0 *8 mg/l is standard value for the temperature below 12 Celsius. The value for temperature above 12 Celsius is 5 mg/l.

76. The process for the WWTP, besides the conventional primary mechanical treatment process, will consist of an anaerobic treatment stage with an upflow/downflow anaerobic filter, followed by an aerobic stage comprising a membrane bio-reactor with activated sludge. Wastewater will be recirculated to achieve denitrification. Figure II.3 illustrates the basic scheme of the primary and secondary treatment process.

Influent Coarse screen Influent pumping station Fine screen

Secondary sedimentation tank Biochemical reaction tank Vortex grit removal chamber

Recirculation processes (effluent back to the reactor Discharge into receiving water body Disinfection tank Effluent pumping station

Figure II.3: The Process Flow Diagram of Qingshuitai WWTP

77. The core of bio-chemical treatment is the anaerobic filter and contact oxidation tank. The specific technical process is as follows: pre-treated wastewater flows into bio-chemical treatment area. The bio-chemical treatment is composed of an influent distribution channel, anaerobic filter and contact oxidation tank. The anaerobic filter is an upflow-downflow filter. HDPE elastic filler within anaerobic filter greatly increase biomass loads of the reactor (attached and suspended biomass) and improves its efficiency. The anaerobic filter has distributors to ensure even water distribution in the tank and to maximize the effective use of space. After anaerobic treatment, wastewater will flow into biological contact oxidation tank by gravity. The tank is biological membrane process-based, supplemented with activated

23 sludge process. After removal of most of organic pollutants by bio-chemical treatment, wastewater goes into the secondary sedimentation tank for solid/liquid separation. Settled sludge will be pumped into the sludge tank. Effluent is recirculated to achieve full denitrification. After recirculation, effluent from the sedimentation tank is finally discharged after being treated to standard and disinfection.

78. One biochemical reaction tank (DSTE reactor) is proposed in the WWTP (75.4mx24.9mx6.1m). The flow rate of the reaction tank is proposed to be 459m3/h. Chlorine dioxide (ClO2) is proposed for the disinfection contact tank before the treated wastewater is discharged into the receiving water body.

79. For the WWTP, this process has been designed to reach the appropriate level of tertiary treatment and to achieve Class 1A treated effluent standard. This process has the advantages of resistance to shock loading, process simplicity and flexibility, and low operations and maintenance costs, which is suitable for the townships when taking the technical and economic considerations into account.

80. The wastewater collection system proposed for Qingshuitai Township consists of 1 8 ,744m wastewater collection pipelines.

81. The WWTP is estimated to produce 584 t/ a of sludge with 80 % w ater content. The sludge generated during the treatment process will be dewatered on-site (to 80% water content) and transported to Shenyang Sludge Treatment Plant for composting.

2. District Heating Component

82. Space heating for the urban area of Fuxin City comes from several heat sources, including combined heat and power plants (CHPs), large coal-fired boilers houses, small boiler houses, and home heating stoves. Sihe Town is currently being developed for urban expansion of Fuxin. The provision of a district heating facility for Sihe Town is a choice between many new small inefficient boilers or to take heat from the existing Fuxin CHP. The locational layout of the subproject is shown in Figure II.5 below.

Figure II.5: Sihe Area Heating Layout

24 83. The Fuxin CHP Plant consists of two 220 megawatts (MW) power generation units and two 350 MW power generation units. The two 220 MW power generation units is the heat source of the Fuxin Heating Company, the IA of the subproject, and other two 350 MW power generation units is heat source of other heating company. The total heating capacity of two 220 MW power generation units can cover 5-6 million m2 of heating area. Currently, it covers 2.7 million m2 and still has remaining capacity of over 3 million m2 of heating area. Thus, the CHP has spare heating capacity equivalent to 3 million m2 of urban development area.

84. The ―indirect connection‖ system to be constructed uses heat exchange stations between the heat source and the customers. The system has two closed loops: a primary loop and a secondary loop. Both loops work independently of each other without direct interference, allowing a higher temperature and higher-pressure heat source. The components include the construction of (i) 12 water-water heating exchange stations (HES); (ii) 12.613 kilometers (km) of primary heating pipeline; and (iii) 19.097 km of secondary heating pipeline. The flow chart of heating supply is shown in Figure II.6.

120o hot water Heating Plant Central Heating Pipeline Heating Exchange Station 70o hot water

6

0

℃

hot water

hot water hot

℃

0

5

Users

Figure II. 6: Flow Chart of Heating Supply

85. It is estimated that a total 4,200 m2 of building areas will be constructed to accommodate 12 HESs. The buildings are designed in accordance with energy conservation and environmental protection regulations. Energy efficient enclosures for buildings will be used and noise mitigation material will be used for the pumping station. The applicable standards, codes, design and construction guidelines of the district heating system include ―Urban Heating Network Design Standard‖ (CJJ34-2010) and ―Technical Regulation on Urban Pre-insulated Bonded Directly Buried Heating Pipeline‖. In addition, the design and construction of district heating system will comply with the Fuxin Urban Master Plan and Urban District Heating Master Plan.

86. Upon completion of the subproject, 15 small boilers with total heating capacity of 10.36 MW are likely to be decommissioned.

3. Roads and Related Facilities Component

87. The urban infrastructure component will rehabilitate 92 km of urban roads and street alleys, and build 53.3 km of new urban trunk, secondary and branch roads, associated storm water and sanitary sewers, urban bridges (6) and culverts (12), and street lights in six cities/counties. The engineering designs have been carried out in accordance with the PRC‘s design standards and respective city/town master plans. Holistic road design and safety design considerations will be incorporated into the urban infrastructure component, including enhanced traffic markings and signage, pedestrian lanes, bus stops, protection barriers, traffic safety education and traffic safety management.

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88. The road component covers seven counties/towns, comprising 52.714 km for Xinmin Subproject, 26.026 km for Qingshuitai Subproject, 18.134 km for Xinglongtai Subproject, 14.944 km for Heishan Subproject, 21.273 km for Huanren Subproject, 11.5 km for Gaizhou Subproject and 1.61 km for Waitoushan Subproject. The details of roads and bridges to be built are shown in the following two tables.

Table II.5: Summary of Roads Design ROW Length Description Classification Speed Width Remarks (km) (km/h) (m) Urban Infrastructures - Construction and Upgrading of Urban Roads and Bridges and Sewage/Storm Water Pipelines Xinmin Infrastructure Subproject 1 South Section of Zhanqian Avenue Main road 50 2.16 42 N 2 South No.2 Road Main road 50 1.12 42 N 3 Xihuan Street Branch road 30 2.38 24 N 4 Xinkaihe West Street Branch road 30 4.76 24 N North Section of Shigongmiao 5 Branch road 30 0.88 24 N Street 6 Donghuan South Street Branch road 30 1.954 24 N 7 Qingzhensi East Road Branch road 30 1.04 24 N 8 North Section of Gongren Street Branch road 30 1.01 30 N Secondary 9 Zhanqian East Road 40 0.47 22 R road 10 Xinhua Road Branch road 30 0.86 20 R 11 Xinhua East Road Branch road 30 0.92 9 R 12 Guangming Road Branch road 30 0.64 20 R Secondary 13 Yingbin South Street 40 0.74 18 R road Secondary 14 Qingzhensi Road 40 0.65 24 R road 15 Nanshi West Road Branch road 30 0.65 24 R 16 Hubin West Road Branch road 30 0.67 24 R 17 Minzu North Street Branch road 30 0.78 26 R 18 Changqing Road Branch road 30 0.68 22 R 19 Shilianshe West road Branch road 30 0.12 10 R 20 Zhongyidong West Road Branch road 30 0.16 12 R 21 North Section of Babao Road Branch road 30 0.27 8 R 22 South Section of Babao road Branch road 30 0.19 6 R 23 Xiangyang New Village No 1 Street Branch road 30 0.58 13 R 24 Xiangyang New Village No 2 Street Branch road 30 0.6 13 R 25 Chengnan Xiaoqu Road Branch road 30 0.52 7 R 26 Tiwei Road Branch road 30 0.25 7 R Teachers‘ New Village Xiaoqu 27 Branch road 30 0.31 12 R Road 28 Liaohe avenue Main road 50 6.6 10 R 29 Middle Section of Zhanqian Avenue Main road 50 1.78 10 R 30 Gongren South Street Branch road 30 1.62 6 R Secondary 31 Donghuan Street 40 1.63 6 R road 32 Shifu Road Branch road 30 0.63 8 R 33 Yingbin North Street Branch road 30 0.44 6 R Secondary 34 Xinshi Street 40 0.52 6 R road 35 Minzu South Street Branch road 30 0.81 6 R 36 Zhongxing East road Main road 50 1.85 8 R

26 Design ROW Length Description Classification Speed Width Remarks (km) (km/h) (m) 37 Nanhuan East Road Branch road 30 0.5 6 R 38 Nanjiao Road Main road 50 1.3 6 R Secondary 39 Beihuan Road 40 2.42 6 R road 40 Beiyuan Road Branch road 30 0.54 12 R 41 East Section of Qingzhensi Road Branch road 30 0.34 8 R Secondary 42 Xinqu South road 40 0.82 8 R road 43 Yucai Road Branch road 30 1.32 6 R Secondary 44 102 State Road 40 2.55 15 R road 45 Nanhuan West Road Main road 50 0.68 28.5 W Shenbei New District Central Towns Integrated Development Subproject Qingshuitai Town- Urban Road Secondary 1 Road 1 40 0.562 26 N road Secondary 2 Road 2 40 0.553 30 N road 3 Road 3 Branch road 30 2.312 20 N 4 Road 4 Branch road 30 0.82 20 N Secondary 5 Road 5 40 0.62 26 N road Secondary 6 Road 6 40 0.709 26 N road Secondary 7 Road 7 40 0.851 26 N road Secondary 8 Road 8 40 0.921 30 N road Secondary 9 Road 9 40 2.392 26 N road 10 Road 10 Branch road 30 0.558 13 N Secondary 11 Road 11 40 0.728 26 N road 12 5 m-width earth road Branch road 20 11.2 5 R 13 6 m-width earth road Branch road 30 2 6 R 14 7 m-width earth road Branch road 30 1.8 7 R Xinglongtai Town- Urban Road 1 Road 1 Branch road 30 1.34 13 N 2 Road 2 Branch road 30 0.81 13 N Secondary 3 Road 3 50 1.35 9 N road 4 Road 4 Branch road 30 1.344 13 N 5 Road 5 Branch road 30 1.355 13 N 6 Road 6 Branch road 30 1 13 N 7 Road 7 Branch road 30 1.108 13 N 8 Road 8 Main road 50 1.147 21 N 9 Road 9 Branch road 30 1.18 13 N 10 3 m-width earth road Branch road 20 7.5 3 N Heishan Infrastructure Subproject 1 Jiefang Street Main road 50 5.792 52 R 2 Xingongye Street Main road 50 6.347 24 N 3 Bintie Road Main road 50 2.805 30 N Huanren Integrated Development Subproject Secondary 1 Hunjiang Street 40 5.074 35 N road

27 Design ROW Length Description Classification Speed Width Remarks (km) (km/h) (m) Secondary 2 Zhongxin Street 40 3.052 22-27 R road 3 Alley Road Alley Road 20 12.849 5 R 4 Missing Link Road 40 0.15 28 N Gaizhou Infrastructure Subproject 1 Beichen Road Main road 50 4.3 30 N 2 Honghuayu Road Branch road 30 2.2 10 W 3 Intersection at end of Beichen Road Main road 30 0.25 60 4 Alley Road Alley road 20 4.4 5 R Waitoushan Mining/ Residential Areas and Songbei Street Road Upgrading Subproject 1 Songbei Street Main road 50 0.7 56 N Secondary 2 No. 1 Road 40 0.91 12 R road N=New, W=Widening, R=Rehabilitation, ROW = right of way Source: Project FSRs, 2011

Table II.6: Summary of Bridges County / Length Width Bridge Name Structure District/City (m) (m) Simple supported plate-girder Zhanqian Street Bridge 60 38 bridge of prestressed concrete Xinmin Simple supported plate-girder Gongren Street Bridge 26 30 bridge of prestressed concrete Gongren Street Flyover Bridge 34.4 30.05 - Shenbei No. 3 Road Bridge 40 20 Continuous beam Qingshuitai No. 9 Road Bridge 48 9 Multi-culvert No. 1 Road Bridge 20 13 Shenbei No. 3 Road Bridge 20 30.5 Culvert Xinglongtai No. 4 Road Bridge 20 13 No. 5 Road Bridge 20 13 No. 1 Bintie Road Bridge 39 30 No. 2 Bintie Road Bridge 26 30 Multi-culvert No. 3 Bintie Road Bridge 39 30 Heishan No.1 Xingongye Street Bridge 8 24 No.2 Xingongye Street Bridge 8 24 Culvert No.3 Xingongye Street Bridge 8 24 Hunjiang Street Bridge (crossing Huanren 40 30 Slant-legged rigid frame bridge Dongdahe River) Songbei Street Bridge (crossing Continuous beam bridge of 140 36 Waitoushan Beishahe River) prestressed concrete Songbei Street Flyover Bridge - - Two separate frame bridges Source: Project FSRs, 2011

89. In selected new or upgraded roads, where alignments are compatible and suitable with drainage infrastructure plans, road construction will be combined with pipe laying to install conduits for wastewater (sewage) and stormwater. The associated roads and proposed pipeline installations are summarized in Table II.7 below. Some road components will have both stormwater and wastewater pipelines attached and some will have only stormwater pipes. The sewer pipes all connect to existing municipal WWTPs, except in the case of the Shenbei subproject at Qingshuitai where they will connect to the new WWTP being constructed as part of the Project.

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Table II.7: Summary of Stormwater and Wastewater Pipes Road Name Stormwater Piping Wastewater Piping Xinmin Subproject (Shenyang City) South Section of Stormwater pipeline: 3.6 km of DN Wastewater pipeline: 3.6 km of DN 700 Zhanqian Avenue 2400; Stormwater pipeline: 2.5 km of DN South No.2 Road Wastewater pipeline: 2.3 km of DN 400 800 & 1500; Stormwater pipeline: 2.3 km of DN Wastewater pipeline: 2.18 km of DN 400 Xihuan Road 800 – 1500; - 600 West Xinkaihe Stormwater pipeline: 4.8 km of DN - Street 600 - 1800 North Section of Stormwater pipeline: 0.83 km of DN Shigongmiao Wastewater pipeline: 0.7 km of DN 500 1000; Street South Donghuan Stormwater pipeline: 1.9 km of DN Wastewater pipeline: 1.8 km of DN 400 Street 1000 - 1500; & 500 East Qingzhensi Stormwater pipeline: 1.0 km of DN Wastewater pipeline: 0.8 km of DN 500 Road 1000; North Section of Stormwater pipeline: 1.15 km of DN Wastewater pipeline: 0.58 km of DN 500 Gongren Street 800 & 1000; Stormwater pipeline: 1.8 km of DN Liaohe Avenue - 800 Stormwater pipeline: 1.65 km of DN Nanjiao Road Wastewater pipeline: 1.65 km of DN 600 2200; Tiebei Drainage Stormwater pipeline: 9.6 km of DN Wastewater pipeline: 8.9 km of DN 400 - Area 600 - 2200; 800 Qingshuitai Subproject (Shenbei New District) Stormwater pipeline: 0.53 km of DN No.1 Road - 800 Stormwater pipeline: 0.53 km of DN No.2 Road - 800 Stormwater pipeline: 2.291 km of DN No.3 Road - 800 - 1600 Stormwater pipeline: 0.771 km of DN No.4 Road - 800 Stormwater pipeline: 0.564 km of DN No.5 Road - 800 Stormwater pipeline: 0.64 km of DN No.6 Road - 800 Stormwater pipeline: 0.768 km of DN No.7 Road - 800 & 1000 Stormwater pipeline: 0.815 km of DN No.8 Road - 800 - 1000 Stormwater pipeline: 2.38 km of DN No.9 Road - 800 - 1000 Stormwater pipeline: 0.53 km of DN No.10 Road - 800 Stormwater pipeline: 0.73 km of DN No.11 Road - 800 35 unpaved Stormwater pipeline: 13.5 km of DN - roads 600 Xinglongtai Subproject (Shenbei New District) Stormwater pipeline: 1.229 km of DN No.1 Road - 1000 Stormwater pipeline: 0.817 km of DN No.2 Road - 1200 No.3 Road Stormwater pipeline: 1.307 km of DN -

29 Road Name Stormwater Piping Wastewater Piping 1000 &1200 Stormwater pipeline: 1.314 km of DN No.4 Road - 800 & 1200 Stormwater pipeline: 1.316 km of DN No.5 Road - 800 &1000 Stormwater pipeline: 0.849 km of DN No.6 Road - 600 & 800 Stormwater pipeline: 0.934 km of DN No.7 Road - 600 & 800 Stormwater pipeline: 0.956 km of DN No.8 Road - 600 & 800 Stormwater pipeline: 0.979 km of DN No.9 Road - 600 & 800 Heishan Subproject (Jinzhou City) Stormwater sewer: 5.069 km; Stormwater pipeline; 6.153 km of DN Jiefang Street Wastewater pipeline: 2.434 km of DN 600 & 800; 500 & 700 Stormwater pipeline: 17.66 km of DN Wastewater pipeline: 2.924 km of DN Xingongye Street 500 & 600; 500 & 700 Stormwater pipeline: 5.31 km of DN Bintie Road Wastewater pipeline: 2.65 km of DN 500 600 - 1000; Huanren Subproject (Benxi City) Stormwater pipeline: 4.079 km of DN Wastewater pipeline: 2.086 km of DN Hunjiang Street 400 – 1200; 400 & 500 Stormwater pipeline: 3.304 km of DN Zhongxin Street - 400 – 1200 Stormwater pipeline: 11.109 km of Wastewater pipeline: 8.969 km of DN 38 Alleys DN 400 – 1200; 400 Gaizhou Subproject (Yingkou City) Stormwater pipeline: 3.431 km of DN Wastewater pipeline: 2.435 km of DN Beichen Road 600 – 1500; 500 Stormwater pipeline: 4.415 km of DN Wastewater pipeline: 1.795 km of DN Honghuayu Road 600 – 2000; 500 & 600 Stormwater pipeline: 3.396 km of DN Wastewater pipeline: 3.281 km of DN 50 Alleys 600 – 1000; 500 Waitoushan Subproject (Benxi City) Stormwater pipeline: 3.438 km of DN Songbei Street Wastewater pipeline: 0.68 km of DN 500 400 – 1500;

4. Capacity Development and Institutional Strengthening

90. The project will help strengthen urban infrastructure management capacity. Currently, Liaoning Provincial Government (LPG) does not have very effective or systematic management tools to help the proposed townships in urban infrastructure management. The project will help the townships introduce effective management concepts, establish fundamental management systems, develop management procedures, set up and strengthen appropriate institutions to implement and operate the urban infrastructure management systems, and improve the overall management capacity within LPG.

91. The project has the following capacity development demonstration features: (i) project management and financial management support, which includes support for the project management offices and implementing agencies to ensure smooth project implementation in compliance with ADB policy and operational requirements. This CEIA and EMP and its accompanying RP is part of the project management documentation; (ii) a leadership enhancement program for senior officials to strengthen capabilities for strategic

30 and holistic management of their jurisdictions, including initiatives to promote social inclusion; (iii) introducing credit appraisal and credit-rating approaches, and identifying alternative financing options; and (iv) people-centric urban infrastructure capacity development program.

31 III. DESCRIPTION OF THE ENVIRONMENT—Baseline

92. The description of the pre-project environment (biophysical and socio-economic) establishes (i) the environmental setting within which the project will be implemented, and therefore needs to be designed to suit, and (ii) the environmental values which will be changed (either negatively or positively) by the Project. Both these roles are encompassed by the concept of the ―baseline‖ environment.

93. The baseline environmental surveys undertaken for subprojects were determined by the kinds of subproject sectors proposed and the environmental parameters which were relevant to their impact assessment.

A. Provincial Environmental Setting

94. Liaoning Province is situated in northeast PRC, with a longitude at E118°50' － 125°46' and latitude at N38°43'－43°26'. The total land area is 147,500 square kilometers (km2), which accounts for 1.5% of PRC‘s total land area. The province has a coastline of 2,920 km, covering 11.5% of PRC‘s total length of coastline. Liaoning Province adjoins Jilin Province in the northeast, Inner Mongolia in the northwest, and Hebei Province in the southwest.

95. The landform of Liaoning Province is divided into three areas: (i) Eastern Hilly Area which is the southeast extension of Changbai Mountain; (ii) Western Hilly Area which is composed of Nuluerhu Mountain, Song Mountain, Hei Mountain and Yiwulv Mountain; and (iii) Central Flat Area which is the alluvial plain of the Liao River and its 30 tributaries.

96. There are more than 300 rivers in Liaoning Province. The major water systems include Liao, Hunjiang, Taizi, Yalu and Daling Rivers. Liao River is the longest river in the province, with a total length of 1,390 km and catchment area of 219,000 km2. The Liao River flows into Bohai Sea at Panjin City in the province.

97. The province has a humid continental climate with four distinct seasons. The annual average temperature is 9℃; the precipitation ranges from 500 to 1,000 mm; and the frost- free period is 130~200 days. The following table shows the climate conditions of the cities/counties related to the Project.

Table III.1: Summary of Climate Conditions in Project Area City/Town Xinmin Shenbei Heishan Huanren Gaizhou Fuxin Benxi Item Average Temperature (C) 7.6 7.5 8 6.3 9.5 8.0 7.8 Average High Temp. (C) 24.3 12.7 15.0 22.9 30 38.0 24.3 Average Low Temp. (C) -12 2.2 3.8 -14.2 -15 -26.0 -14.3 Average Precipitation 608 672.9 561.6 842.2 600-790 328.0 800 (mm) Average Evaporation 1743 1522.1 480 612.3 - 1941.8 1600 (mm) Non-freezing Period 160 155 161 138 150-170 210 156 (days) Average Wind Velocity 4.1 2.3 4.2 1.9 - 2.9 2.8 (m/s) Maximum Frozen Depth 1.07 1.29 1.44 0.91 1.11 1.4 1.2 (m) Source: EIAs and FSRs for each subproject, 2011

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98. Liaoning Province is composed of 14 prefecture-level cities, 17 county-level cities, 19 counties, and 8 autonomous counties. Shenyang is the capital city and located at the middle part of Liaoning. The total population of the province was 43.2 million in 2009 and urban population was 25.9 million (60% of the total population). Liaoning is a multi-ethnic province with 44 nationalities.

99. Comparing with other provinces in the PRC, Liaoning has been suffering from slower economic growth since late 1970s due to exhaustion of mineral resources and the difficult transition from state-owned heavy industries to light and service industries. Liaoning‘s per capita gross domestic product (GDP) had dropped from 4th position in 1980 to only 9th in 2009 among the 31 provinces in the PRC. As a result of slow economic growth, urban unemployment rates among the central Liaoning cities are constantly kept at high levels (about 5%). The official ratios of urban poor, defined as those under the Minimum Living Standard Security Programs, in the resource exhausted cities were very high (e.g., 16.5% and 10.2% in Fuxin, Tieling and Fushun in 2009). The poorer economic growth in the main cities (the prefecture level cities) had also severely affected the various counties and towns as growths were interlinked.

100. The province has the largest economy in Northeast PRC. Its nominal GDP in 2009 was RMB 1.52 trillion, making it the ninth largest among the 31 provinces in PRC. Among the total GDP, 9.3%, 52.0% and 38.7% are from the primary, secondary and tertiary industries, respectively. Liaoning‘s per capita GDP was RMB 35,239 in 2009.

101. Leading industries in Liaoning Province include petrochemicals, metallurgy, electronics telecommunications, and machinery. On a national level, the province is a major producer of pig iron, steel and metal-cutting machine tools. The production of these commodities ranks among the top three in the nation. Liaoning is one of the most important raw materials production bases in PRC. Its industries, such as coalmining, quarrying, smelting and pressing of ferrous metals, petroleum and natural gas extraction, are of great significance for the PRC.

B. Component Localities Environmental Setting

1. Xinmin City (under Shenyang Municipality)

102. Xinmin City is a county-level city under the administration of Shenyang. It is located in north-central Liaoning Province, 60 km from the urban area of Shenyang City. The total land area is 3,318 km2. Xinmin has a semi-humid continental monsoon climate with four distinct seasons.

103. The city has 11 towns and 13 villages. In 2009, the total population was 699,000, with 65% non-rural population. The per capita GDP was RMB 26,544.

104. Landform. Xinmin is located on the alluvial plain of the Liao River, where the topography is high in the north and low in the south. It is divided into four topographic areas: (i) North Hillock Area with the elevation of 35-55 m; (ii) Flat Area of North of Liao River with the elevation of 20-40 m; (iii) Liurao Sandy Alkaline Area with the elevation of 30-50 m; and (iv) Liaorao Low-lying Area.

105. Biological resources. With six rivers running through it, Xinmin City is rich in natural resources. It is covered with 1.1million mu forest, 0.45million mu grassland and 70 thousand mu aquaculture. There are four ecological protection areas in Xinmin City with rich fauna and flora.

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106. Seismic Intensity Zone. In the PRC‘s seismic intensity zoning map, Xinmin City is defined as a Grade 6 seismic zone.

107. Water resources. There are six rivers flowing through the city, including Liao, Liu, Raoyang, Yangximu, Xiushui and Pu Rivers, with a total length of 239.1 km. The city has rich water resources, with average run-off and total groundwater resources of 1.978 billion m3 and 0.54 billion m3, respectively. Xinkai River which originates from Guodun Bridge in the north is the surface water body of the subproject. The total length of Xinkai River is 4417.4m with the average flow of 0.3m3/s.

108. Surface water quality. Two monitoring points, south section of Zhanqian Street and north section of Gongren Street) were set up on Xinkai River by Shenyang Environmental Monitoring Station (EMS). Water samples were taken once per day in three consecutive days (September 13-15, 2011). The monitoring results are summarized in Table III.2 below.

Table III.2: Water Quality – Xinkai River (Unit: mg/L except pH) 1# 2# (GB3838 – 2002) Parameter Sept. 13 Sept.14 Sept. 15 Sept. 13 Sept.14 Sept. 15 Grade V pH 7.05 7.33 7.25 7.21 7.15 6.96 6～9 COD 43 42 44 126 118 123 ≤40 NH3-N 11.62 10.62 9.78 5.69 6.12 4.78 ≤2.0 Oil 0.25 0.22 0.28 0.46 0.52 0.39 ≤1.0 TP 2.56 2.1 1.67 0.98 0.87 1.12 ≤0.2 SS 9 9 6 35 56 48 ≤10011 BOD5 12 8 10 27 24 26 ≤10 Source: EIA for Xinmin Subproject, 2011

109. According to the above monitoring data, only pH, oil, SS and BOD5 concentrations/value from the two sampling points meet the requirement of Environmental Quality Standards for Surface Water (GB3838-2002) – Grade IV; others did not satisfy the standard due to discharge of untreated domestic and industrial wastewaters. The water quality of Xinkai River is worse than Grade V standard of GB3838-2002, and cannot satisfy the requirement (i.e. Grade V) set by the local EPB.

110. Air quality. The local air quality was monitored on 18-24 October 2011 for seven consecutive days. Samples were taken at five monitoring points. Table III.3 summaries the monitoring results.

11 The standard of SS adopts Water Quality Standard for Farmland Irrigation (GB5084-2005).

34 Table III.3: Air Quality of Xinmin Subproject (Unit: mg/m3) (GB3095 – 1996) EHS (mg/m3) Parameter 1# 2# 3# 4# 5# – Grade II Min. 1.5 1.5 0.75 1.5 0.75 n/a CO Max. 2.75 2.25 2.75 2.75 2.25 4.0 Average 2.0 1.929 1.689 2.0 1.5 Min. 0.01 0.009 0.006 0.011 0.012 NO2 Max. 0.032 0.035 0.046 0.03 0.038 0.12 Average 0.018 0.023 0.023 0.016 0.024 0.04 Min. 0.042 0.038 0.044 0.018 0.037 PM10 Max. 0.149 0.141 0.146 0.146 0.138 0.15 Average 0.102 0.091 0.078 0.068 0.090 0.02 Min. 1.9 1.9 1.9 1.9 1.7 n/a THC Max. 4.9 3.7 3.7 3.7 3.6 4.012 Average 3.657 2.971 2.657 2.829 2.371 Note: The data represent the daily average value. Source: EIA for Xinmin Subproject, 2011

111. Due to relatively heavy traffic flow during the monitoring period, some daily average concentrations of total hydrocarbon (THC) do not meet the requirement of Integrated Emission Standard of Air Pollutants (GB 16297-1996) – fugitive THC emission. Other parameters for all monitoring points satisfy the requirement of Ambient Air Quality Standard (GB3095-1996) – Grade II.

112. Acoustic environment. 14 monitoring points at sensitive sites were set up and monitored to identify the acoustic baseline of the roads to be built in the project during October 14-27, 2011 (see Table III.4).

Table III.4: Acoustic Baseline of Xinmin Subproject (Unit: dB(A)) Leq Reference Value EHS Road Monitoring No. Daytim Nighttim Daytim Nighttim Daytime Nighttim Name Point e e e e e Sifang Hotel South No. 1# on Liaohe 64.3 50.2 70 55 70 70 2 Road Street South Nanxiaoqia Section of o at 2# 51.6 42.4 60 50 55 45 Zhanqian Xiaoheigan Street g Village West Southeast 3# Xinkaihe 65.8 52.1 60 50 55 45 Community Street East Xinmin No.1 4# Qingzhens Middle 64.6 51.0 60 50 55 45 i Road School 1st Row of West Building at 5# Nanhuan Xiangyang 67.5 50 70 55 70 70 Road Residential Area

12 The standard of THC adopts Integrated Emission Standard of Air Pollutants (GB 16297-1996) – fugitive THC emission.

35 Leq Reference Value EHS Road Monitoring No. Daytim Nighttim Daytim Nighttim Daytime Nighttim Name Point e e e e e 2nd Row of Building at 6# Xiangyang 67.3 49 70 55 70 70 Residential Area 3rd Row of Building at 7# Xiangyang 67.5 48.8 70 55 70 70 Residential Area 4th Row of Building at 8# Xiangyang 67.7 48.3 70 55 70 70 Residential Area Ximin No.3 Xihuan 9# Middle 49.7 42.1 60 50 55 45 Street School Proposed 10 - Dongying 50.2 41.8 60 50 55 45 # PS 11 Proposed - 67.6 57.8 60 50 55 45 # Tiebei PS 12 Proposed - 63.5 50.8 60 50 55 45 # Nanjiao PS Cross Section of Shenshan 13 North Railway and 53.3 45.7 70 55 70 70 # Section of North (78.2) (76.8) Gongren Section of Street Gongren Street 14 52.4 46.0 Hougangzi 60 50 55 45 # (67.1) (62.1) Note: The data shown in the brackets represent the noise monitored during the passage of train. Source: EIA for Xinmin Subproject, 2011

113. Owing to the noise of heavy vehicles and trains on No. 102 National Highway (near 3# monitoring point), East Qingzhensi Road (near 4#), Shenshan Railway (near 11#) and No. 106 Provincial Highway (near 12#), the noise levels (both daytime and nighttime) of 3#, 4#, 11# and 12# do not meet the relevant standards. Additionally, the monitoring points of 13# and 14# are near Shenshan Railway, with noise levels at the daytime and nighttime exceeding the standard during the passage of trains. However, the noise levels of these two points satisfy the requirement at other times. All monitoring data of 1#, 2#, 5#, 6#, 7#, 8#, 9# and 10# meet the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade II & 4a.

114. Xinmin City has rich forest resources, with coverage of 17.4%. The city is noted as the hometown of poplar trees in PRC. The major crops include rice, corn, sorghum and

36 soybean.

115. Physical cultural resources. The major cultural relics and historic spots in Xinmin include four mosques (South Mosque13 and North Mosque in the urban area and Damintun Mosque and Baiqibao Mosque in the suburb), ruins of Gaotaishan of New Stone Age, and Liaobin Tower of Jin Dynasty. South Mosque is a City level cultural relic and located at the south of Qingzhensi Road. Construction at Qingzhensi Road is limited to the paving of the sidewalk. Appropriate safeguards for cultural heritage will be implemented for the construction (see Chapter IV, section E). These safeguards were discussed and agreed upon with the Mosque imam and the Xinmin City religious committee. They agreed that the construction of this project is beneficial to improve the surrounding environment of the South Mosque and protect the cultural relic, and they confirmed their support to the construction of this project and the adequacy of the proposed protection measures.

2. Qingshuitai and Xinglongtai Towns of Shenbei New District

116. Shenbei New District is situated in the northern suburb of Shenyang City. It has a semi-humid continental monsoon climate. The city has two townships (i.e. Qingshuitai and Xinglongtai Towns). The total area is 892 km2, with a total population of 319,000 in 2009. The per capita GDP is RMB 103,674.

117. Qingshuitai Town is located at the east of Shenbei New District and 35 km from Shenyang City. The total area is 78 km2, with a total population of 30,000 in 2009. The township has 19 villages.

118. Xinglongtai Town is located at the west of Shenbei New District and 20 km from the north suburb of Shenyang City. The total area is 52.86 km2, with a total population of 13,800 in 2009. The town has 17 villages.

119. Landform. Shenbei is flat and open, with an average elevation of 58 m. The topography is characterized by high east and low west, which is divided into three areas, including eastern hilly area, central loess deposit plain and western alluvial plain of Liao River. The substratum is mainly made up of silty clay. The distribution of stratum lithology from top to bottom includes silty clay and gravel.

120. Biological resources. With abundant natural resources, Shenbei New District is called The Hometown of Rice and Fish. Shirenshan Ecological Zone located on the east side of the New District has rich fauna and flora and is considered as a valuable resource of forest species and wild fruits. Production bases of vegetables, flowers and nursery stock are constructed in the central part of the New District.

121. Seismic intensity zone. In the PRC‘s seismic intensity zoning map, Shenbei New District is defined as a Grade 7 seismic zone. The designed basic seismic acceleration value is 0.10g; the designed characteristic period is 0.35s.

122. Water resources. There are seven rivers flowing through the district, including Laio River and Pu River. Liao River (E117°00'－125°30' and N40°30'－45°10') is the mother river of Liaoning. It flows through four provinces/autonomous region, i.e. Hebei, Inner Mongolia,

13 South Mosque was built in Qing Dynasty, which is the most famous mosque in Xinmin and one of four famous mosques in Liaoning Province.

37 Jilin and Liaoning. The total length of Liao River is 1,430 km, with a catchment area of 229.4 km2. Liao River System includes Liao River, Hun River, Taizi River and Raoyang River. The Pu River is a major tributary of Hun River, with a total length and catchment area are 205 km and 2,496 km2.

Figure III.1: River Network of Shenbei New District

123. There are three small rivers and one channel in Qingshuitai Town, including (i) Wanquan River which flows through the north border of Qingshuitai with a total length of 12 km; (ii) Yangchang River which flows through the middle of the town with a total length of 6.5 km; (iii) Chang River which flows through the south of the town with a total length of 6 km; and (iv) Funv Channel which is an artificial drainage facility.

124. There are two major rivers flowing through Xinglongtai Town, including (i) Zuoxiao River which is 14 km long and 50-100 m wide with a catchment area of 118.4 km2; and (ii) Jiulong River which is 12.5 km long with the drainage area of 126 km2.

125. Surface water quality. Chang River is the receiving water body of the effluent from the proposed Qingshuitai WWTP. It originates in Magang Village of eastern Shenbei and flows into Liao River. The river is 45 km long and 3-4 wide, with the flow rate of 0.24 m3/s

38 during the mean-water season. The river water quality was monitored by Shenbei New District EMS in February 2011. There are two monitoring points, i.e. 1# (Qingshuitai Town) and 2# (Bridge crossing No. 107 Provincial Highway), which results are shown in the table below.

Table III.5: Water Quality – Chang River (Unit: mg/L)

Item DO IMn BOD COD NH3-N 1# 0.4 31.8 64 124 7.7 2# 0.3 14.3 28.8 55.8 3.5 (GB3838-2002) – Grade III ≥5 ≤6 ≤4 ≤20 ≤1.0 (GB3838-2002) – Grade V ≥2 ≤15 ≤10 ≤40 ≤2.0 Source: EIA for Shenbei Subproject, 2011

126. The concentrations of dissolved oxygen (DO), permanganate index (IMn), 5-day biochemical oxygen demand (BOD5), chemical oxygen demand (COD) and ammonia nitrogen (NH3-N) at the two monitoring points fail to meet the requirement of Environmental Quality Standards for Surface Water (GB3838-2002) – Grade III, which is the goal set by the local EPB. In fact, due to receiving domestic wastewater along the river, the current water quality of Chang River in Qingshuitai Town is even worse than Grade V of GB3838-2002.

127. Groundwater quality. The sampling sites of groundwater were Qingshuitai Village well and Xinglongtai Village well. The water quality of groundwater is in the Table III.7 below.

Table III.7: Groundwater Quality (Unit: mg/L except pH)

Monitoring Point / Reference Value pH Hardness IMn Iron Chloride Nitrate Xinglongtai Well 6.91 157.9 0.027 0.12 10 2.42 Qingshuitai Well 6.52 275 ≤0.05 0.12 32 19.81 6.5- (GB/T14848-93) – Grade III ≤450 ≤0.1 ≤0.3 ≤250 ≤20 8.5 Source: EIA for Shenbei Subproject, 2011

128. Based on the monitoring result, all monitoring results not only met the requirements set by local EPB but also met the Environmental Quality Standards for Groundwater (GB/T14848-93) – Grade III.

129. Air quality. The air monitoring data conducted by Shenbei New District EMS on August 24-26, 2011 for three consecutive days were collected to show the baseline.

Table III.8: Air Quality of Shenbei Subproject (Unit: mg/m3) Qingshuitai Xinglongtai (GB3095-1996) – Parameter Town Town EHS Grade II Min. Max. Min. Max. TSP 0.175 0.286 0.153 0.232 0.30 n/a NO2 0.010 0.011 0.022 0.032 0.12 0.04 CO 2.208 2.50 3.458 3.792 4.0 n/a Note: The data represent the daily average value. Source: EIA for Shenbei Subproject, 2011

130. Based on the monitoring results in the table, the air quality in Qingshuitai and Xinglongtai Towns meets the requirement of Ambient Air Quality Standard (GB3095-1996) – Grade II and the World Bank EHS Guidelines (2007).

131. Acoustic Environment. The acoustic baseline was monitored in August 2011, which results are summarized in the following table.

39

Table III.9: Acoustic Baseline of Shenbei Subproject (Unit: dB(A)) Grade 4a of Monitoring Leq EHS No. Town GB3096-2008 Point Day Night Day Night Day Night 1 m from 1st row of 1# Qingshuitai residential 61.4 54.7 area on No.3 road 1 m from 1st row of 2# Xinglongtai residential 62.1 51.8 70 55 70 70 area on No. 8 road crossing of 58.4 – 58.4 – 3# Qingshuitai No. 6 and 64.4 67.8 No. 9 crossing of 43.2 – 43.7 – 4# Xinglongtai No. 3 and 56.3 56.9 No. 8 Note: 24-hr continuous monitoring was applied to 3# and 4#. Source: EIA for Shenbei Subproject, 2011

132. The noise level (both daytime and nighttime) of 1# and 2# satisfy the requirement of Grade 4a of Environmental Quality Standard for Noise (GB3096-2008). Most of the time, the noise level at 3# and 4# meet the Grade 4a standard of (GB3096-2008) except sometimes at night when levels slightly exceed the standard.

133. The noise monitoring was undertaken for the boundary of the proposed WWTP on August 20, 2011. Table III.10 shows the monitoring results.

40

Table III.10: Acoustic Baseline of Proposed WWTP (Unit: dB(A)) (GB3096-2008)- Monitoring Leq EHS Grade I Point Daytime Nighttime Daytime Nighttime Daytime Nighttime Qingshuitai E 54.5 42.4 WWTP W 51.4 41.7 55 45 55 45 S 50.6 42.2 N 53.8 40.4 Source: EIA for Shenbei Subproject, 2011

134. According to the above data, the noise levels around the boundary of proposed WWTP in Qingshuitai Town meet the requirement of (GB3096-2008) – Grade I as well as EHS guideline (2007).

135. Physical Cultural Resources. There are no cultural relics or historic sites located in the towns of Qingshuitai and Xinglongtai.

3. Heishan County (Jinzhou City)

136. Heishan County, under the administration of Jinzhou City, is situated at the west of Liaoning Province, with a total area of 2,487 km2. The county has a continental monsoon climate in the north temperate zone.

137. The county has 17 towns, 4 villages and 1 minority village. In 2009, the total population was 634,900, with 21% non-rural population and the per capita GDP was RMB 15,334.

138. Landform. Heishan County is located at the downstream area of Liao River. The western and northern parts are low hills which are the part of Yiwulv Mountain; the central part is a wide plain; and the southern part is low lying.

139. Biological resources. Heishan County is one of the national key grain producing counties. The main products include corn, wheat, soy bean, peanuts, rice and sorghum. Recently, the livestock industry is developing dramatically in Heishan County with more than 20 kinds of livestock. The forest coverage of the County is 16.1% with the total timber reserves of 1.24million m3.

140. Seismic Intensity Zone. In the PRC‘s seismic intensity zoning map, Heishan County is defined as a Grade 6 seismic zone.

141. Water resources. The major rivers in Heishan include Raoyang, Dongsha, Yangchang and Pangjia Rivers, and the last three rivers are the tributaries of Raoyang River. Raoyang River is an important tributary of Liao River Basin. It originates in Chahaer Mountain in Fuxin Mongolia Autonomous County of Liaoning Province and flows into Liao River, with a total length of 290 km and catchment area of 3,534 km2. Dongsha River is also a major tributary of the Liao River. It rises in Fuxin Mongolia Autonomous County. Its total length is 142.7 km, with a catchment area of 2,040 km2. Two medium sized reservoirs, Longwan and Youlin, were constructed on the upper stream of Dongsha River in 1958 serving as flood protection, irrigation and aquaculture. The design standard applied to construct two reservoirs for an average recurrence interval of 100 years. The reservoirs improved the flood protection ability of the downstream. All rivers are seasonal rivers that are affected by precipitation. During June to September, the flood level increases due to the heavy precipitation. No flood is recorded in the history.

41 142. Surface water quality. Pangjia River is the surface water body to be assessed for the project. Currently, the river is the drainage channel of Heishan County, and receives the effluent discharged from Heishan WWTP. The river rises in Jianshanzi of Shengli Village and flows into the Raoyang River at Beizhen County. The river length in Heishan is 40.3 km, with a catchment area of 205 km2. Two monitoring points were set up and monitored on October 8-10, 2011 for three consecutive days, with a frequency of twice per day (see Table III.11).

Table III.11: Water Quality – Pangjia River (Unit: mg/L except pH)

Monitoring Point pH COD BOD5 SS NH3-N Oil Min. 8.20 36.9 5.44 12 0.166 0.65 1# Max. 8.25 38.8 5.87 18 0.181 0.82 Average 8.23 37.9 5.66 14 0.173 0.74 Min. 8.18 34.6 5.33 11 0.155 0.63 2# Max. 8.23 37.1 5.56 16 0.175 0.70 Average 8.20 36.0 5.45 14 0.165 0.67 (GB3838-2002 – Grade V 6～9 40 10 - 2.0 1.0 Source: EIA for HeishanSubproject, 2011

143. The above monitoring results show that the water quality of Pangjia River meets the Environmental Quality Standards for Surface Water (GB3838-2002) – Grade V.

144. Air quality. The local air quality was monitored by Heishan EMS on October 8-14, 2011 for seven consecutive days. The following table summarizes the results for three monitoring points, which are sensitive receivers related to the project.

Table III.12: Air Quality of Heishan Subproject (Unit: mg/m3)

Monitoring Point Parameter TSP PM10 SO2 NO2 Min. 0.20 0.054 0.027 0.024 Heishan Geracomium Max. 0.23 0.072 0.032 0.030 Average 0.22 0.062 0.029 0.027 Min. 0.20 0.048 0.025 0.026 Xiaolongwan (residential area) Max. 0.23 0.069 0.033 0.029 Average 0.21 0.057 0.028 0.027 Min. 0.18 0.051 0.024 0.026 Huangjiahao (residential area) Max. 0.22 0.068 0.032 0.029 Average 0.20 0.060 0.029 0.027 (GB3095-1996) – Grade II 0.3 0.15 0.15 0.12 EHS n/a 0.075 0.125 0.2 Note: The data represent the daily average value. Source: EIA for Heishan Subproject, 2011

145. According to the above monitoring data, the air quality for all monitoring points meets the requirement of Ambient Air Quality Standard (GB3095-1996) – Grade II as well as EHS guideline requirements.

146. Acoustic Environment. The noise level of sensitive receivers, which are the first row of buildings along the proposed roads, was monitored on October 11-12, 2011 for two consecutive days (see Table III.13).

42 Table III.13: Acoustic Baseline of Heishan Subproject (Unit: dB(A)) Leq (GB3096-2008) EHS Monitoring Dat Road Daytim Nighttim Daytim Nighttim Daytim Nighttim Point e e e e e e e Oct. Heishan 51.4 40.3 Bintie 11 Geracomiu Road Oct. m 50.9 39.4 12 Oct. Hongyun 50.9 41.5 Bintie 11 Residential Road Oct. Area 51.1 40.6 12 Oct. Nongdian 49.8 39.7 Jiefang 11 Residential Street Oct. Area 48.7 38.5 12 Oct. 50.1 40.2 Bintie Nanhu 11 70 55 70 70 Road Community Oct. 49.6 39.3 12 Huangjiaha Oct. 50.2 39.6 Jiefang o (near 11 Street Jiefang Oct. 50.8 41.2 Street) 12 Huajiahao Oct. 48.7 38.7 Jiefang (near 11 Street Xingongye Oct. 50.4 40.7 Street) 12 Oct. 49.9 41.1 Xingongy Xiaolongwa 11 e Street n Oct. 51.0 41.3 12 Oct. 49.5 38.9 Xingongy Qinghe 11 55 45 55 45 e Street Community Oct. 48.9 39.4 12 Source: EIA for Heishan Subproject, 2011

147. Based on the monitoring data in the table, the noise level of all monitoring points satisfies the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade 1 or 4a as appropriate as well as the requirement of EHS guideline.

148. Physical Cultural Resources. The tomb group of early Liao Dynasty was found and rare cultural relics were dug up in Heishan County. The roads and bridges to be built do not pass near the ancient tomb group.

4. Huanren County (Benxi City)

149. Huanren Manchu Autonomous County, under the administration of Benxi City, is located at the east of Liaoning, with a total area of 3,547 km2. The county has a humid climate.

150. The county has eight towns and 4 villages. In 2009, the total population was 301,807, with 29.5% non-rural population. There are 14 minorities in the county, including Manchu, Korean, Hui and Mongolian. The minority population accounts for more than half of the total population. The per capita GDP was RMB 37,655.

43 151. Landform. The local geomorphic type includes hill features, karst landform and river patterns. The mountains in the county are part of the Changbai range, with elevations between 400 m and 1,000 m. The ground falls away from the western, northern and eastern area to the central and southern areas.

152. Biological resources. The total forest area of Huanren County is 385.5×104 mu equals to 76.6% forest coverage. There are more than 2,000 different species of plants and 1,596 diverse species of animals, in which includes 45 species of mammals, 200 species of birds, 30 species of fish, 8 species of amphibian and 13 species of reptiles.

153. Seismic intensity zone. Huanren County is defined as a Grade 6 seismic zone and the seismic index is 0.05g in the PRC‘s seismic intensity zoning map.

154. Water resources. Huanren County has very rich water resources (1.56 billion m3) of water resources, including 1.23 billion m3 of surface water and 333 million of groundwater. There are 84 rivers/channels in the county, most of which pertain to Hunjiang River system. The main stream of Hun River originates in Haeryafan Mountain of Jilin Province, flows through Huanren from the north to south, and flows into Yalv River at Kuandian County. The total length is 447 km, with the catchment area of 17,500 km2 and the maximum flow of 1m3/s. Fuer River is the largest tributary of Hun River amang Daya River, Liu River, Lou River, Lichagou River, Hada River and Hongtingzi River. The proposed subproject including construction of a new bridge spanning the Dongda River. Dongda River is a seasonal river contains only surface runoff water collected in monsoon with little ecological value. However, since the frequent precipitation, four times of flood occurred in the history of Huanren County.

155. Surface water quality. The water quality of Hun River section of Huanren County is the closest to the county road subproject. The starting point and destination of Hun River (section of Huanren County) are the dam of Huanren Reservoir and the dam of Fengming Reservoir respectively. The data of Report on Environmental Quality in Huanren (2010) indicate that the water quality of Huanren Reservoir meets the requirement of Environmental Quality Standards for Surface Water (GB3838-2002) – Grade II except that the concentrations of total nitrogen (TN) and total phosphorus (TP) at some monitoring sections do not satisfy the standard at one time or another; and the water quality of Fengming Reservoir meet the standard of (GB3838-2002) – Grade II. The following table shows the monitoring data related to the monitoring sections of Hun River in 2010.

Table III.14: Water Quality of Huanren Subproject (Unit: mg/L except pH) Parameter Monitoring Point pH DO COD BOD5 NH3-N Oil SS Huanren Reservoir 7.71 10.4 2.3 2.2 0.102 ＜0.01 10 Fengming 7.62 9.5 0.9 1.6 0.173 ＜0.01 10 Dongdahe River Bridge 7.26 10.1 2.6 2.6 0.183 ＜0.01 20 (GB3838-2002)-Grade II 6～9 ≥6 ≤15 ≤3 ≤0.5 ≤0.05 - Source: EIA for Huanren Subproject, 2011

156. Air quality. Based on the regular monitoring data collected from Report on Environmental Quality in Huanren (2010), the primary air pollutants are PM10 and dust-fall. Table III.14 shows the air quality of Zhongxin Street monitored on October 8-10, 2011.

44 Table III.15: Air Quality of Zhongxin Street (Unit: mg/m3) Monitoring Results (Daily (GB3095-1996)–Grade Parameter Average) EHS II Oct. 8 Oct. 9 Oct. 10 TSP 0.20 0.20 0.25 0.30 n/a PM10 0.11 0.12 0.12 0.15 0.15 NO2 ＜0.006 ＜0.006 ＜0.006 0.12 -

SO2 ＜0.005 ＜0.005 ＜0.005 0.15 0.125 Source: EIA for Huanren Subproject, 2011

157. The above data indicate that the air quality of the street meets Ambient Air Quality Standard (GB3095-1996) – Grade II as well as EHS guideline Standard.

158. Acoustic environment. The noise level of major sensitive receivers along Hunjiang Street and zhongxin Street were monitored by Huanren EMS on September 27-28 and October 11-12, 2011 respectively. All of the monitoring points were located at 1 m from the windows of sensitive receivers. The monitoring results are summarized in Table III.16.

Table III.16: Acoustic Baseline of Huanren Subproject (Unit: dB(A)) Road Sensitive Leq Reference Value EHS No. Name Receivers Day Night Day Night Day Night 1# - 1 52.0 48.6 70 55 70 70 Xiguan Village 1# - 2 51.3 47.6 60 50 55 45 2#(1st 58.7 48.9 floor) Huanren No.1 2#(3rd 57.4 48.5 60 50 55 45 Middle School floor) 2#(5th 57.2 47.9 floor) 3# - 1 55.6 47.3 70 55 70 70 Xiguan Village 3# - 2 54.7 45.7 60 50 55 45 Rongfeng 4# 55.8 47.2 70 55 70 70 Garden 5#(1st 59.0 52.5 floor) 5#(3rd 58.1 51.7 Tiantai floor) 70 55 70 70 Garden 5#(5th Hunjiang 57.4 51.0 floor) Street th 5#(7 57.0 49.4 floor) Dongguan 6#-1 53.7 45.4 70 55 70 70 Village 6#-2 50.8 44.5 60 50 55 45 Dongguan 7# 56.0 45.1 70 55 70 70 Village 8#(1st 58.4 48.7 Dongshan floor) 60 50 55 45 Middle School 8#(3rd 56.9 48.5 floor) Dongshan 9# - 1 59.2 51.3 70 55 70 70 Community 9# - 2 57.1 49.8 60 50 55 45 Fengming 10# 53.7 47.1 70 55 70 70 Village Fengming 11# - 1 57.4 46.7 70 55 70 70 Village 11# - 2 53.8 45.0 60 50 55 45 Baseline 12# 47.5 41.1 - - - -

45 Road Sensitive Leq Reference Value EHS No. Name Receivers Day Night Day Night Day Night Xiguan Village 13# 57.8 49.6 70 55 70 70 14# - 1 58.3 49.7 70 55 70 70 Xiguan Village 14# - 2 55.1 48.5 60 50 55 45 15#(1st 56.8 48.8 Xiyuan Middle floor) 60 50 55 45 School 15#(3rd 54.8 48.4 floor) 16# - 1 59.3 50.4 70 55 70 70 16#(1st 55 45 56.4 49.6 floor) 16#(3rd 55.6 49.0 Xiguan Village floor) 60 50 16#(5th 54.8 48.3 floor) 16#(7th 54.1 47.7 floor) 17#(1st 57.4 48.9 floor) Shiyan 17#(3rd 56.9 48.1 60 50 55 45 Kindergarten floor) 17#(5th 56.4 47.6 floor) Zhongxin 18#(1st Street 60.5 52.5 Xinshihuayuan floor) 70 55 70 70 Building 18#(3rd 59.6 51.5 floor) 19#(1st 60.9 52.9 floor) 19#(3rd Huatai 60.3 52.4 floor) Residential 70 55 70 70 19#(5th Area 59.7 51.8 floor) 19#(7th 59.3 51.3 floor) 20#(1st 60.0 52.1 floor) Building of rd 20#(3 Farmer‘s 59.0 51.8 70 55 70 70 floor) Market 20#(5th 58.5 51.3 floor) 21#(1st Dongguan 57.3 50.0 floor) Primary 60 50 55 45 21#(3rd School 56.7 49.5 floor) Baseline 22# 50.2 42.5 - - - - Source: EIA for Huanren Subproject, 2011

159. According to the above table, the noise level of all sensitive receivers meets the requirements, i.e. Environmental Quality Standard for Noise (GB3096-2008) – Grade II or 4a. However, according to EHS guideline standard for residential areas, educational institutions and commercial areas, most monitoring results have exceeded the standard, especially, at nighttime, only two monitoring points, Dongguan Village and Fengming Village have met the requirement. All monitoring points are on both sides of urban road traffic trunk line, thus the results are slightly higher.

46 160. Physical Cultural Resources. Wunv Mountain City, a Goguryeo site found in Huanren, has been listed as part of a UNESCO World Heritage Site. The subproject sites in Huanren County are not near, and do not threaten, any significant heritage or historic items.

5. Gaizhou City

161. Gaizhou City, which is a county-level city under the administration of Yingkou City, is located at the south of Liaoning and 30 km from Yingkou City. The total area is 2,945.9 km2. The city has a continental monsoon climate.

162. The city has 18 towns, 3 villages and 6 street offices. In 2009, the total population was 732,265, with 24.9% non-rural population. The per capita GDP was RMB 16,397.

163. Landform. Gaizhou is situated at the hilly area of south Liaoning. The ground falls away from the east to west, which eastern and south eastern areas are low mountains and hills, and western and northwestern area is a plain.

164. Biological Resources. The coverage of vegetation in subproject area is relatively limited. Plantation is dominated by poplars and willows. The species and quantities of wild animals in the subproject area are reduced due to the lack of habitat diversity. No aquatic fauna and flora were found in the river resulted from severe pollution of the river channel.

165. Seismic intensity zone. In the PRC‘s seismic intensity zoning map, Gaizhou City is defined as a Grade 7 seismic zone.

166. Water resources. The city has rich water resources. There are nine rivers with total catchment area of more than 100 km2, including Daliao, Daqing, Biliu, Xiongyue, Fudu, Huzhuang, Sha, Laodong and Dahan Rivers. Most of these rivers rise in the mountains and hills at east Liaoning, and flow into Bohai Sea to the west or Yellow Sea to the south. Daqing River is the natural river channel of Gaizhou City with the catchment area of 720.32km2, the length of 61.5km and the average flow of 8.3m3/s.

167. Surface water quality. The alignments of proposed roads are near the tributary of Daqing River, which is a natural river in Gaizhou with total length of 100.7 km. The upper stream of Daqing River has two major tributaries, which converge at Fujiagou of Huangtuling Village. The east tributary originates in Bapanling Mountain in Dashiqiao City, and the west tributary is Dongdaqing River. The river flows through Gaotun Village and urban area of Gaizhou City, and flows into Bohai Sea at Xihai Farm. The length of Daqing River in Gaizhou is 61.5 km with the catchment area of 720.32 km2, which tributaries include Hucheng, Xiangshui and Erdao Rivers. The average flow rate is 8.3m3/s.

168. Two monitoring sections were set up on the tributary of Daqing River and monitored on October 10-12, 2011. The monitoring data have been summarized in the table below.

Table III.17: Water Quality of Huanren Subproject (Unit: mg/L except pH)

Monitoring Point Monitoring Date pH COD NH3-N Oil SS Oct. 10 6.92 36 1.36 0.07 30 Daqing River (1#) Oct. 11 7.32 40 1.38 0.06 32 Oct. 12 7.35 42 1.42 0.07 33 Oct. 10 7.18 40 1.50 0.10 31 Daqing River (2#) Oct. 11 7.21 44 1.49 0.09 35 Oct. 12 7.43 38 1.51 0.08 35 (GB3838-2002) – Grade V 6～9 40 2.0 1.0 - Source: EIA for Gaizhou Subproject, 2011

47

169. Due to the fact that the upper stream receives the untreated domestic wastewater from the urban area of Gaizhou, some COD concentrations slightly exceed the requirement of Environmental Quality Standards for Surface Water (GB3838-2002) – Grade V. Other parameters satisfy the standard. Along with the completion of Gaizhou WWTP and sewage interception works, the river water quality will be gradually improved.

170. Air quality. The air quality of sensitive receivers related to the proposed roads was monitored on October 10-16, 2011 for seven consecutive days (see Table III.18).

Table III.18: Air Quality of Gaizhou Subproject (Unit: mg/m3) PM SO NO Parameter 10 2 x Averag Averag Averag Monitoring Point Min. Max. Min. Max. Min. Max. e e e Highway Station 0.092 0.102 0.097 0.010 0.014 0.012 0.010 0.014 0.012 Wenfeng Temple 0.092 0.109 0.097 0.008 0.012 0.010 0.012 0.016 0.013 Hada Road 0.091 0.109 0.099 0.006 0.014 0.011 0.012 0.018 0.013 Gaizhou Road 0.093 0.115 0.103 0.010 0.016 0.013 0.022 0.030 0.025 Honghuayu Village 0.095 0.110 0.103 0.008 0.012 0.010 0.012 0.016 0.013 Xingyuan Village 0.094 0.111 0.101 0.010 0.015 0.012 0.011 0.015 0.013 Majiagou 0.092 0.105 0.100 0.010 0.014 0.012 0.010 0.015 0.013 (GB3095-1996)– 0.15 0.15 0.12 Grade II EHS 0.075 0.125 - Source: EIA for Gaizhou Subproject, 2011

171. The above monitoring data show that the noise level of all sensitive receivers satisfies the requirement of Ambient Air Quality Standard (GB3095-1996) – Grade II. However, the PM10 values of monitoring points have exceeded the EHS standard.

172. Acoustic Environment. The noise level of sensitive receivers related to the project site was monitored on October 10-12, 2011 for three consecutive days. The monitoring data are summarized in the following table, which indicate that the acoustic baseline meets the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade II as well as EHS standards expect for the nighttime monitoring results of Wenfeng Temple.

Table III.19: Acoustic Baseline of Gaizhou Subproject (Unit: dB(A)) (GB3096- Monitoring Oct. 10 Oct. 11 Oct. 12 EHS Points 2008)-Grade II Day Night Day Night Day Night Day Night Day Night Highway 52.3 43.2 52.6 43.0 52.2 42.9 Station Wenfeng 53.2 46.3 53.4 45.8 53.0 46.1 Temple Hada 48.6 44.1 49.1 44.0 48.3 43.7 Road Gaizhou 60 50 55 45 52.1 43.6 51.8 43.4 52.5 43.8 Road Honghua 51.8 42.8 51.4 43.2 52.0 43.1 yu Village Xingyuan 50.4 40.6 50.5 40.3 50.7 41.0 Village Majiagou 51.3 43.9 50.6 44.0 50.9 43.7 Source: EIA for Gaizhou Subproject, 2011

173. Physical cultural resources. The roads to be built do not pass through/by any significant heritage or historic items.

48

6. Sihe Town (Fuxin City)

174. Sihe Town is under the administration of Xihe District of Fuxin City. The town is located at the northwest of Xihe District and 3 km from the downtown of Fuxin City. The total area of Sihe is 82 km2, with the total population of 31,000 in 2009.

175. Fuxin City is situated at the northwest of Liaoning, with a total area of 10,355 km2. The city has a continental monsoon climate at the temperate zone.

176. The city has 2 counties, 5 districts, 36 towns, 32 villages and 26 street offices. In 2009, the total population was 1,922,700, with 44.6% non-rural population. The per capita GDP was RMB 14,880.

177. Landform. Fuxin is located at the low mountain and hilly area of west Liaoning, which is the transition zone of Mongolian Plateau and Liao River Plain. The ground falls away from the west to north. Wulanmutu Mountain (with the elevation of 831.4 m) at northwest and Nandianzi Village (with the elevation of 48.5 m) at southeast are the highest and lowest points in the city respectively.

178. Biological resources. Fuxin City is contiguous with Inner Mongolia with well developed agriculture and livestock husbandry. Common flora includes ashtree, Mongolian oak and elm. No endangered wild animals are found in the area.

179. Seismic intensity zone. In the PRC‘s seismic intensity zoning map, Fuxin City is defined as a Grade7 seismic zone.

180. Water resources. Rivers in Fuxin pertain to the river basins of Liao and Daling Rivers, with a total water resource of 1.033 billion m3. The major tributaries of Liao River include Raoyang, Liu, Yangximu and Xiushui Rivers. Mangniu and Xi Rivers are the primary tributaries of Daling River. Xi River is a major river that flows through the city from the east to south, which is a seasonal river. The river is 113 km long and 160 - 300 m wide, with a total 2 3 catchment area of 2,932 km and the maximum flow of 505m /s. The highest flood level is 129.02m. Its primary tributaries include Jiuyingzi, Tangtou and Qing Rivers. No flood is recorded in the history since Fuxin belongs to the dry and semi-dry area.

181. Surface water quality. The proposed heating pipeline will cross the Jiuyingzi River, which is a major tributary of Xi River. The water quality of Jiuyingzi River was monitored by Fuxin EMS on November 4-6, 2011, which results are shown in the following table.

Table III.20: Water Quality of Jiuyingzi River (Unit: mg/L except pH)

Monitoring Date pH IMn COD NH3-N TP Oil Nov. 4 7.78 3.58 5.81 0.429 0.01 0.05 Nov. 5 7.80 3.51 8.50 0.453 0.01 0.05 Nov. 6 7.51 3.94 7.15 0.419 0.01 0.05 (GB3838-2002)-Grade II 6～9 4 15 0.5 0.1 0.05 Source: EIA for Fuxin Subproject, 2011

182. The above data indicate that the river water quality is good and satisfies the requirement of Environmental Quality Standards for Surface Water (GB3838-2002) – Grade II.

183. Air quality. The regular air monitoring data was collected to indicate the air baseline in Fuxin City. The following table shows that the local air quality meets the requirement of

49 Ambient Air Quality Standard (GB3095-1996) – Grade II. However the annual average value of PM10 slightly exceeds the EHS standard.

Table III.21: Air Quality of Fuxin Subproject (Unit: mg/m3)

Parameter PM10 SO2 NO2 Annual Average 0.094 0.048 0.034 (GB3095-1996) – Grade II 0.10 0.06 0.08 EHS 0.07 - 0.04 Source: EIA for Fuxin Subproject, 2011

184. Acoustic environment. Seven sensitive receivers were selected to monitor their noise level on November 4, 2011 (see Table III.22).

Table III.22: Acoustic Baseline of Fuxin Subproject (Unit: dB(A)) Monitoring Leq Standard Value EHS Points Daytime Nighttime Daytime Nighttime Daytime Nighttime Laiyin Town (Residential 57.0 53.7 Area) 70 55 70 70 Christian Church 58.4 51.1 Fuxin No.4 63.0 50.2 Hospital Shiyan Middle 57.6 49.4 60 50 55 45 School Xihe District 63.6 54.2 70 55 70 70 Court Residential Area 50.3 43.7 55 45 55 45 Gongjiawazi Village 58.1 53.2 60 50 55 45 Committee Source: EIA for Fuxin Subproject, 2011

185. According to the above monitoring data, the noise level of all sensitive points meets the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade I, II and 4a except that the noise of Gongjiawazi Village at nighttime does not satisfy the requirement of (GB3096-2008) – Grade II. According to EHS standard, two daytime monitoring results have exceeded the requirement while two nighttime monitoring results exceeded the standard.

186. Physical cultural resources. The project sites in Sihe Town do not threaten any significant heritage or historic items.

7. Waitoushan Town (Benxi City)

187. Waitoushan Town is located at Shenxi New City14, which is the economic developing area of Benxi City. The area is under the administration of Xihu District, and is 17 km of Shenyang Taoxian International Airport, with a total area of 44.92 km2. The town has six villages, one street office and one community. Waitoushan has a humid climate with four distinctive seasons.

14 Shenxi New City is located at the border of Shenyang and Benxi and the central area of Shenyang Urban Economic Zone. Shenxi is 43 km and 21 km from Shenyang and Benxi respectively.

50

188. Benxi City is located at the southeast of Liaoning, with a total area of 8,411.3. km2. The city has four districts (i.e. Pingshan, Mingshan, Xihu and Nanfen Districts) and two Manchu autonomous counties (i.e. Benxi and Huanren Manchu Autonomous Counties). The total area of Xihu District is 302 km2, with a total population of 212,000 in 2009. The per capita GDP was RMB 55,283.

189. Landform. The surrounding terrain falls from the southeast to northwest. Hilly areas, which are offshoot of Changbai Mountain and Qian Mountian, predominate.

190. Waitoushan Town is surrounded by mountains with gentle hills and broad valleys. The southeastern and northwestern area is flat, and the northeastern and southwestern area is low mountains and hills.

191. Biological resources. Benxi City is one of the key natural forest areas in the PRC with a forest coverage of 63.8%. Timber resources total 28.88million m3 in the area including various precious timbers such as Korean pine, Chinese pine and larch. Ornamental flowers, Chinese herbal medicine and wild fruits are also abundant in Benxi City. Plentiful water resource made Benxi City rich in aquatic fauna.

192. Seismic intensity zone. In the PRC‘s seismic intensity zoning map, Benxi City is defined as a Grade 6 seismic zone.

193. Water resources. Benxi City has rich water resources, with more than 200 rivers. The primary water systems include Taizi, Hun and Cao Rivers.

194. The water system related to the project is Beisha River, which rises in Huolianzhai and Shiqiaozi, flows through Waitoushan from the south to north, and flows into Hun River at Sujiatun of Shenyang City. The total length of Beisha River in Benxi city is 33.1km. The total catchment area is 302 km2, with 32 rivers and 243 tributaries. Two floods of Shiqiaozi Development Zone were recorded in 1971 and 1995.

195. Surface water quality. Two monitoring sections were set up on Beisha River. Two water samples were taken on November 20, 2011. The monitoring results are shown in the following table.

Table III.23: Water Quality of Beisha River (Unit: mg/L except pH)

Monitoring Section pH COD BOD5 NH3-N Oil SS 100 m upstream Beisha River Bridge 7.82 18.3 3.5 1.28 ＜0.01 44 500 m upstream Beisha River Bridge 7.36 18.6 3.8 1.31 ＜0.01 53 (GB3838-2002) – Grade IV 6～9 30 6 1.5 0.5 - Source: EIA for Benxi Subproject, 2011

196. The above data show that the water quality satisfies the requirement of Environmental Quality Standards for Surface Water (GB3838-2002) – Grade IV.

197. Air quality. Two monitoring points ware set up and monitored on November 20-26, 2011 for seven consecutive days to indicate the local baseline (see Table III.24).

51 Table III.24: Air Quality of Benxi Subproject (Unit: mg/m3) Songmubao Zhenxing Community (GB3095- Parameter 1996) – EHS Min. Max. Average Min. Max. Average Grade II PM10 0.095 0.112 0.103 0.062 0.082 0.074 0.15 0.15 CO 0.65 0.9 0.78 0.69 0.87 0.79 10 n/a SO2 0.019 0.024 0.022 0.018 0.025 0.022 0.15 0.125 NO2 0.018 0.024 0.021 0.019 0.024 0.021 0.12 - Note: The data represent the daily average value. Source: EIA for Benxi Subproject, 2011

198. The monitoring results in the above table show that the local air quality meets the requirement of Ambient Air Quality Standard (GB3095-1996) – Grade II and EHS standard.

199. Acoustic environment. Seven monitoring points were set up and monitored on November 20-21, 2011 for two consecutive days to indicate the noise level of roads (1# and 2#), railway (3#) and sensitive receivers (4# - 7#). The monitoring data are summarized in the following table.

Table III.25: Acoustic Baseline of Fuxin Subproject (Unit: dB(A)) Monitoring Nov. 20 Nov. 21 Reference Value EHS No. Point Day Night Day Night Day Night Day Night G304 1# (National 58.7 54.8 61.4 52.5 Highway) 60 50 55 45 Shenben 2# Industrial 59.5 53.2 60.4 54.2 Avenue Shendan 3# 63.6 57.5 64.5 56.8 70 70 70 70 Railway 4# Songmubao 44.5 41.8 42.5 42.4 Waitoushan 5# 46.7 41.2 50.5 41.1 Village South Zhenxing 6# 54.7 42.4 48.9 43.9 Community 60 50 55 45 Road North Zhenxing 7# 50.5 40.1 53.9 42.6 Community Road Source: EIA for Benxi Subproject, 2011

200. The above data indicate that the noise level of existing roads, i.e. 1# and 2#, does not meet the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade II and EHS Standard; however, the monitoring results of all sensitive receivers satisfy the standard of (GB3096-2008) – Grade II and EHS standard. The noise of Shendan Railway meets the requirement of Noise Standard and Measurement Method for Railway Boundary (GB 12525-90) and EHS standard.

201. Physical cultural resources. The roads to be built do not pass through/by any significant heritage or historic items.

52 IV. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Screening and Scoping of Potential impacts

202. The potential environmental effects of the Project have been scoped beginning with the Rapid Environmental Assessment (REA) during project preparation, and subsequently through the feasibility study reports and PRC EIA documents. The major potential environmental impacts have been identified for each sector and are summarised in Table IV.1 below. While the full range of potential environmental effects will be discussed in this CEIA, these impacts and the measures to avoid or ameliorate them will be the main emphasis.

Table IV.1: Assessment Scope Subproject Assessment Scope

Construction: Noise, dust, wastewater and solid waste will be generated to varying degrees during the construction of all subprojects. Erosion and sedimentation from construction sites and from borrow pits and spoil disposal will be generated to varying degrees during the construction of all subprojects. All Subprojects Surface water. Waterways may be affected by runoff from construction sites, including the leaking of polluting materials. Waterways and banks may be especially affected by bridge construction. Health and safety considerations apply to construction workers and safety risks and nuisance to community during construction Operations Air quality will potentially be affected by increased traffic volumes on upgraded roads or the introduction of a traffic stream on new roads – although the rehabilitation of existing urban roads (partly unpaved), and the construction of new roads, are anticipated to reduce urban emissions by reducing traffic bottlenecks and reducing dust. Noise environment will potentially be affected by increased traffic volumes on upgraded roads or the introduction of a traffic stream on new roads. Noise sensitive locations such as residential buildings, schools and medical facilities Road, drainage and may be affected. bridge subprojects Surface water. The discharge of road drainage, stormwater and sewers to be constructed under project roads will be subject to due diligence as associated facilities. Health and safety. A potential community safety risk during operation relates to traffic safety on project roads. Facilities associated to the project. Consideration of the treatment and ultimate disposal of wastewater and stormwater carried in the pipes laid in conjunction with the roadworks. Air quality may be impacted by odour produced by a range of processes and locations at the WWTP. Land resources/ecology may potentially be affected by the location of WWTP on the outskirts of urban areas (and therefore impinging on agricultural land) and close to waterways. WWTP Noise environment. Continuous operation required of WWTP poses potential noise impacts for nearby residences. Surface water. WWTP will decrease the pollution load to receiving rivers and contribute to water quality improvement (currently worst than class V). During operation, wastewater discharge and sludge disposal could affect water and soil quality if not properly managed.

53 Subproject Assessment Scope Groundwater. Potential impacts on groundwater may come from leakages/overflows from plant Health and safety. Safety, health and environmental risks from insufficiently trained operators, or implementing agencies who fail to conduct regular inspections of the project facilities to repair defects promptly, and comply with the PRC State Administration of Worker Safety Laws and Regulations. Peripheral facilities. Consideration of the centralized sludge treatment and composting facility. Air. The project will also help improve air quality in Fuxin by shifting the heating supply from inefficient small heat-only boilers and household stoves to a more energy-efficient, CHP-based district heating system. Health and safety. Safety, health and environmental risks from insufficiently Heating pipelines and trained operators, or implementing agencies who fail to conduct regular HES inspections of the project facilities to repair defects promptly, and comply with the PRC State Administration of Worker Safety Laws and Regulations. Peripheral facilities. Consideration of the CHP supplying the heat, and decommissioning/demolition of superseded local boilers.

B. Positive Impacts and Environmental Benefits

1. Direct Positive Impacts

203. The Project will bring significant benefits to the residents of the peri-urban and urban areas of townships and cities in the greater Shenyang area by improving living conditions, urban environment, public health, and employment.

204. The improved wastewater disposal system in Qingshuitai in Shenbei New Area will result in cleaner and healthier living environment for town residents; and reduced contamination of rivers and waterways. The new WWTP will reduce the inflow pollution load, which currently enters receiving waters untreated, by the amounts indicated in Table IV.2 below.

Table IV. 2: Pollution Load Removal

Pollutant BOD5 SS NH3-N TP Qingshuitai Pollution Load of Inflow (t/d)* 1.70 1.60 0.25 0.030 Pollution Load Removed before 1.60 1.50 0.20 0.025 Discharge (t/d) Removal efficiency (%) 93.3 93.75 83.3 90 * The pollution load of inflow in based upon FSR predictions from similar areas. This will be confirmed in detailed design.

205. The expansion of the centralized domestic heating system in Sihe Township, Fuxin City, will bring cheaper and cleaner heating to the residents of a new urban area totalling 3,000,000 m2 without requiring the combustion of additional coal equivalents and replacing less efficient small heating plants. Both the people (see beneficiaries below) and the local air quality will benefit significantly. Pollutant savings have been calculated for a comparison between the operation of the CHP and cumulative operation of the equivalent number of small boilers and/or domestic stoves to provide the same heat. These are summarized in Table IV.3 below.

54 Table IV.3: Air Pollution Savings from Using CHP Flue dust Coal Saving (Raw SO2 emission NOx emission emission CO2 emission coal) reduction reduction reduction reduction (TSP) 30,199 t/a 302 t/a 734 t/a 5543 t/a 53,690 t/a

206. Improved road networks will reduce traffic congestion; improve road safety conditions for both vehicles and pedestrians; facilitate the movement of residents, and, in some county seats, open up new areas for urban expansion. They will also reduce air emissions and provide fuel savings (with consequent significant savings in net CO2 emissions).

2. Beneficiaries

207. The project will directly benefit 0.73 million local residents, involving (i) 75.3% of urban residents with 7.3% categorized as under poor under the governments‘ Minimum Living Standard Security Programs in 2009; (ii) 24.7% of rural residents with 4.5% % categorized as rural poor under the rural ―Minimum Living Standard Security Programs15‖ in 2009; (iii) about 5% of ethnic minority including Man, Xibo, Chaoxian, Hui and others; and (iv) 48.5% of females. The local urban master plan envisaged that the beneficiaries will be increased to about 1.7 million by 2020.

208. Roads. The county, district and city transport master plans which the subprojects help to implement have, as their objectives, orderly and balanced development to increase economic activity and living standards. The new and upgraded roads with river and canal crossings and associated road drainage works will provide essential roads linkages and complete the connection of newer peri-urban areas to commercial areas.

209. Wastewater treatment. The improvement to the urban environment that will come from implementation of the wastewater treatment subproject will result in improved quality of life for all households in Qinjgshuitai. At present, the existing wastewater treatment facility cannot cope with the volume of wastewater produced by the urban population in the township. This population is increasing, with large building projects currently being undertaken to re-house many residents of the flatted areas. The population projections for Qingshuitai are 37,000 in 2015. All will be beneficiaries and benefit from access to the wastewater collection system.

Table IV.4: Anticipated Number of Beneficiaries of Improved Wastewater Disposal Total % of Current Total Number of Urban population population % of population population, people serviced Facility currently serviced in serviced in 2015 2011 in 2015 serviced 2011 Qingshuitai <30,000 2,000 6.6% 37,000 100%

210. Heating expansion. Table IV.5 shows the anticipated number of direct beneficiaries of the heating subproject in Sihe township, Fumin City. All residents are likely to benefit indirectly to some extent from reduced air pollution from domestic heating stoves. A

15 The standards are CNY 1,250-1,600 and CNY 1,300-2,100 per person per year among the subproject areas in 2009 and 2010 respectively.

55 reduction in the use of coal fires for heating may reduce the incidence of respiratory complaints in these towns, although this remains unproven. In those towns in which it will be primarily the apartments which will be newly serviced as result of the subproject, those to benefit will tend to be the least vulnerable members of the community.

Table IV.5: Anticipated Number of Beneficiaries of Improved Heating Contribution of Total building Total building % contribution of subproject to Urban area serviced by area serviced by subproject to new heating Facility centralised centralised heating requirements in heating, 2010 heating, 2015 requirements 2015 2015 Sihe 2 2 2 19 million m 22.3 million m 3 million m 100% Township

3. Climate Change

211. The following elements of subproject design and planned implementation are relevant to the local conditions and developmental environment. In summary, the subprojects significantly reduce greenhouse gas emissions and marginally improve the region‘s resilience to climate change effects.

Limiting Greenhouse Gas Emissions

212. The roads and heating subprojects will result in CO2 savings – the roads though fuel savings facilitated by better connectivity and better road surfaces; the heating subproject by using heat from the combined power and heating plants which is currently provided to residents by small local boilers and domestic heating stoves (all of which will be replaced). Although there are significant CO2 savings derived from using heat from the CHP rather than small local boilers and domestic stoves (reported in the table below), the proportional GHG emitted from the CHP in providing that heat will be subject to the ADB Safeguards provisions covering aggregate CO2 emissions in excess of 100,000 t/a. The implementation of this safeguard is discussed below in Chapter V Consideration of Associated and Peripheral Facilities. The CO2 savings assumptions and calculations for the subproject are set out in Appendix 2.

Table IV.6: CO2e Savings from Project Subprojects

Subproject Total GHG Emissions (in CO2e) Road 67,752 t/annum (at 2035 AADT*) Heating 53,690 t/annum * = annual average daily traffic

Adaptation to Future Climate Change Effects

213. IPCC working groups on adaptation have put forward the following principles which should apply to the planning and design of infrastructure projects16:

16 e.g. UNFCCC, 2009. Draft Bellagio Discussion Paper – Strategies for bringing land transport into the climate change negotiations

56  A long term perspective (building climate resilient infrastructure from new);  Requirements for fixing and adapting what already exists (maintenance);  Recognition of the need to respond to climate emergencies (a ―preparedness‖ approach).

214. These approaches are also in line with the ADB‘s CCF Implementation Guidelines‘ specific criteria and scope for adaptation 17 which, for transport and urban development, requires ―Climate proofing of road, rail, port, and subway projects to ensure adequate resilience to changing climatic conditions (e.g., future extreme events, changes in rainfall patterns, and changes in drainage patterns)‖.

215. A summary of project features, by subproject, addressing greenhouse gas emissions and climate change adaptations is given in Table IV.7 below.

Table IV.7: Project Features Addressing Climate Change Subproject Climate Change

GHG Emission Reduction Adaptation/Resilience

Road . Road engineering (surface . Design avoiding disasters from quality, curve radii, gradients) extreme weather events (flood which reduce GHG (mainly CO2) proofing, snowdrift protection) emissions through fuel savings . Culverts and drainage structures designed for 1:100 yr flood (exceeding required standard)18. . Increased connectivity for disaster response Wastewater . Appropriate engineering . Planned overflow and shut-down approaches and cleaner measures production which reduce carbon . Elevated freeboard of settlement emissions from treatment plant and aeration ponds to avoid flood levels Heating . Co-generation of heating and . Engineering standards and design power allows the use of spare avoiding disasters from extreme heating capacity without the need weather events to burn additional fossil fuels. . Replacement of small local heating boilers and domestic heating stoves. Source: PPTA Team

C. Impacts Associated with Project Location, Planning, and Design

1. Direct Losses from the Project’s Footprint

216. Loss of Land. The majority of road components in the subprojects are in urban or peri-urban areas and are either upgrades of existing roads or newly constructed roads on

17 ADB 2008, Climate Change Fund: Implementation Guidelines, 5. 18 The PRC standard for the class of road is 1 in 50 years. These are based on road class rather than predicted discharge through culvert. The next standard increment above this, 1 in 100, was therefore chosen to provide a prudent increase in resilience to future increased runoff events.

57 alignments where dirt vehicular tracks currently exist. These roads and supporting stormwater drains will occupy waste ground and current building areas, commercial sites and household gardens. They will therefore be subject to the strict compensation and resettlement laws pertaining to these situations (all applicable PRC laws and regulations and ADB‘s Safeguards Policy statement (2009)). Only a small number of new road and road drainage alignments will result in the loss of currently farmed land. Both new wastewater treatment plant subprojects are located on agriculture land (rice paddy in Xinglongtai, and corn fields in Qingshuitai). Under the relevant legislation and principles that apply in the PRC in such cases, farmers who lose land permanently will be compensated by replacement with land of equivalent quality and quantity, or through a lump sum payment. This process is detailed in the Involuntary Resettlement Assessment and Measures.

217. The occupation of land, both temporarily and permanently, under planned infrastructure subprojects is estimated at about 190 ha and is summarized in Table IV.8 below. These areas are estimates drawn from the subproject EIAs and FSRs.

Table IV.8: Land Acquisition and Resettlement unit Xinmin Shenbei Heishan Gaizhou Huanren Beixi Total Affected township/urban No. 3 2 2 1 1 1 10 wards Affected village/community No. 8 4 8 5 3 3 31 Permanent Collective ha 22.9 20.4 14.5 9.4 5.4 7.1 79.7 land land acquisition Farmland ha 21.3 11.6 11.4 8.2 4.6 6.4 63.6 State land ha 0.0 13.4 0.0 0.0 2.0 0.0 15.4

Note: Shenbei subproject refers to Shenbei Road and Shenbei WW. Source: the Urban Planning and Design Institute of Liaoning Province.

218. Asset acquisition and resettlement. A total of 80,315 square meters (m2) of residential houses and shops and enterprises will be demolished. In total, permanent land acquisition and house demolition will affect 1,334 households and 4,416 persons in 6 counties and districts. The impacts of the Project are summarized in Table IV.9.

Table IV.9: Land Acquisition and Resettlement unit Xinmin Shenbei Heishan Gaizhou Huanren Beixi Total Affected township/urban No. 3 2 2 1 1 1 10 wards Affected No. 8 4 8 5 3 3 31 village/community Acquisition Rural house m2 4,794 20,021 2,897 3,410 4,479 2,149 37,750 of Urban m2 26,758 0 0 0 4985 96 31,839 residential house houses/ & 2 structures Structures m 3,865 5,981 684 0 196 0 10,726 Sum m2 35,417 26,002 3,581 3410 9,660 2,245 80,315 Affected Acquisition HH 159 115 79 125 42 77 597 rural of land Person 522 376 258 404 166 296 2,022 households Acquisition and HH 47 261 49 0 41 25 423 of persons residential Person 155 779 160 0 165 105 1,364 houses Both land HH 6 15 35 4 25 25 110 and house acquisition Person 20 52 111 15 101 105 404 HH 18 29 2 2 4 0 55 Structures Person 61 90 7 46 10 0 214

58 Affected Acquisition HH 285 0 0 0 82 2 369 urban of households residential and Person 956 0 0 0 257 7 1,220 houses persons Total of affected HH 503 390 95 123 144 79 1,334 households and persons Person 1,674 1193 314 435 497 303 4,416 Note: Shenbei subproject refers to Shenbei Road and Shenbei WW. Source: the Urban Planning and Design Institute of Liaoning Province.

219. The draft Resettlement Plans address the relocation needs of the affected households and have identified resettlement site options. Detailed information will be collected for each site and the county governments will revise the draft RPs based on the physical indices survey and include details of the resettlement options, location, number of affected households, and number of affected persons, land areas, and infrastructure plans. The RPs will be implemented in accordance with all applicable PRC laws and regulations, and ADB‘s Safeguard Policy Statement (2009).

220. Economic displacement. The main economic displacement impacts identified in the subproject EIAs are (i) Caretakers at existing small heating boilers to be redeployed in Fuxin and (ii) Caretakers at the existing WWTP in Qingshuitai. The boiler caretakers will be retained by the heating companies at their present rates of employment (since their duties at the small boilers are not their core work activities). Since the existing WWTP at Qingshuitai only comprises a settlement tank and continuous discharge to the adjacent water body, the existing staff comprises one caretaker. The PMO has advised that the caretaker will be provided with similar employment in the new plant, of a non-technical nature.

221. These impacts and planned offsetting measures are examined in the project‘s Social Development Action Plan and are incorporated as loan assurances in this CEIA.

222. The project will indirectly and directly contribute to poverty reduction in the subproject areas by: (i) supporting and complementing a series of ongoing governments‘ pro-poor livelihood improvement programs, i.e., ―Shantytown Transformation‖, ―Economic Housing‖ and ―Low Rent Apartment Construction‖; (ii) providing direct employment opportunities to both rural and urban poor during the project construction with 20% of the jobs going to the poor; (iii) generating economic and employment opportunities for both urban and rural poor through urban expansion and its resultant secondary and tertiary industrial developments; (iv) reducing heating expenses by connection to district heating; (v) reducing environment caused diseases that the poor are vulnerably exposed to by improving sewage system and by replacing indoor coal-fired stoves for heating; (vi) expanding potential market of agricultural products for the peri-town villagers; (vii) exempting up to 80% of heating tariff for urban poor in the district heating subproject area; (viii) implementing the pro-poor RPs, Social Development Action Plan and Gender Action Plan.

223. No negative impact on livelihoods and economic activity will be caused by the project‘s affect on waterways. No beneficial downstream uses are made of the receiving waters downstream of the proposed WWTP, due to their current very low water quality. They are canalized until their confluence with the Liao River or major tributary (Taizi River), and are not used for domestic or agricultural purposes. In fact the project‘s components, including the WWTP and the conveying of stormwater and sewage to appropriate treatment through the pipeline networks connected to the project roads, will act to clean up local waterways.

224. Loss of Physical Cultural Resources. At all construction sites, except one road component in Xinmin, there is no record of important heritage or archaeological sites on the land that will be temporarily or permanently lost. Nor do known heritage sites occur nearby

59 any of the other subproject construction sites. For the repaving of the Qingzhensi Road sidewalk in the Xinmin subproject, the proximity of the South Mosque (a city level cultural relic) requires additional safeguards to ensure no off-site impacts occur. During the preparation of the FSR, the opinions and suggestions of the Mosque imam have been fully considered. The Muslim custom will be respected and the project red line will be strictly controlled. Safeguards to be implemented during project construction include: (i) No construction activities, disturbance, stockpiling or vehicle/machinery use will be undertaken on the mosque side of the sidewalk; (ii) Jackhammers and generators will not be operated within 100m of the mosque outer wall; (iii) All work within 200m of the mosque will be supervised by staff of the Shenyang Cultural Relics Protection Office; and (iv) Workers‘ canteen and sanitation facilities will be located at least 100m from the Mosque and construction activities will be forbidden during Muslim religious service period. These measures were discussed with the Xinmin South Mosque and the Xinmin City religious committee. They agreed that the construction of this project is beneficial to improve the surrounding environment of Mosque and protect cultural relic, and they confirmed their support to the construction of this project and the adequacy of the proposed protection measures. Additionally, should archaeological artefacts be discovered during any site works, government requirements for excavating and preserving those items will be strictly followed. Chance find procedures will be established for undiscovered underground cultural or historic sites that might be identified during project implementation. This requirement is included in the EMP.

D. Environmental Management Measures during the Pre-Construction Phase

225. A number of environmental management measures will be implemented in the pre- construction phase to ensure that appropriate plans and documentation to determine environmental performance of construction and operation of subprojects are in place. These include: (i) finalization of subproject sites and alignments; (ii) the finalization of subproject EIAs under PRC regulations and submission of EIAs to the local EPBs for approval processing; (iii) completion of two rounds of public consultations in each subproject locality on environmental issues, poverty, resettlement and the Grievance Redress Mechanism during the project design and EIA preparation; and (iv) the preparation of RPs for the Project in each subproject locality to required ADB and PRC standards.

226. Additional pre-construction measures for this project include:

(i) Updating EMP: Mitigation measures defined in this EMP will be updated and incorporated into the detailed design to minimize adverse environmental impacts. This will be the responsibility of the IAs, using the LDIs.

(ii) Land-take confirmation: The Resettlement Plan will be updated with final inventory and the results incorporated into the detailed design. This will be the responsibility of the IAs, using the LDIs.

(iii) Contract documents: Preparation of the environment section in the Terms of Reference for bidders for construction contracts, and environmental contract clauses for contractors, namely the special conditions (referencing the EMP and monitoring plan). This will be the responsibility of the Subproject PMOs.

(iv) Environmental Protection Training: Environmental specialists and/or officials from local EPBs will be invited to provide training on implementation and supervision of environmental mitigation measures to contractors. This will be the responsibility of the IAs.

(v) Spoil disposal sites and borrow pit locations will be finalized and identified in the

60 construction tender documents, subject to approval by the local EPBs. This will be the responsibility of the IAs, using the LDIs.

(vi) Plans for closure and restoration of current WWTP: Time-bound action plan for the closure of the existing WWTP in accordance with national standards including proper remediation, sludge disposal and monitoring of environmental conditions will be prepared. This will be the responsibility of the Shenbei New District govt.

(vii) Centralized composting of sludge: Plans, procedures and facilities will be in place for the treatment of sludge from the project WWTP at the Shenbei centralized composting station. This will be the responsibility of the Shenbei New District govt.

(viii) Buffer zone around WWTP for odor: Ensure that any resettlement or asset losses as a consequence of the establishment of the 100m buffer zone around WWTP are incorporated in resettlement planning. This will be the responsibility of the Shenbei New District Government.

E. Impacts and Mitigation Measures during the Construction Phase

1. Contractor Performance and Site Management – All Subprojects

227. To ensure that construction contractors are able to implement the mitigation measures, the IAs will put in place the following arrangements: (i) environmental specifications will be included in the bidding documents to contractors; (ii) an appropriate environment section describing standards and responsibilities will be included in the terms of reference for bidders; (iii) approved spoil disposal sites, material haulage routes, borrow pit locations and waste disposal arrangements will be defined in the construction tender documents as appropriate; and (iv) clauses referencing the EMP mitigation provisions and monitoring plans will be written into the construction contracts. Following the award of construction contracts, the successful head contractor will prepare a Site Environmental Management and Supervision Manual, including an emergency preparedness and response plan and site environmental health and safety plan, for approval by the IAs.

228. During construction, the assigned environmental protection team of the IAs should be strengthened to enhance site supervision, management and appraisal, so as to identify problems and solve the problems in time. Environmental training, especially related to environmental management, is included in the EMP. The contractor will take reasonable measures to minimize the impact of construction on the environment.

2. Roads and Stormwater and Sewer Drains Construction

229. The following impacts and mitigation measures refer to construction impacts which are common to all road subprojects. All will require earthworks, soil stabilization, dust and noise control as well as management of the impacts from machinery operation, transport and haulage of building materials and the domestic needs of the work force. Occupational and community health and safety issues are discussed separately in Section E below.

230. Spoil Disposal. Road subprojects will make maximum use of spoil from construction earthworks through balancing cut and fill, the construction of berms for noise and wind protection of plants and facilities and earthworks for landscaping. The total earthworks and surplus spoil from the subprojects are summarized in table IV.10 below.

61 Table IV.10: Borrowing, Excavation, Backfill and Surplus Spoil (unit: m3) Road Subproject Excavation Backfill Surplus Spoil Comment Xinmin 472,000 452,000 20,000 For disposal Shenbei New Area (Qingshuitai and 351,140 337,400 16,000 For disposal Xinglongtai) Heishan 122,000 258,000 -136,000 From borrow pit Huanren (Benxi City) 108,7 00 212,600 35,000 For disposal Gaizhou 564,587 185,729 378,858 For disposal Waitoushan (Benxi 141,750 130,400 11,350 For disposal City)

231. Surplus spoil should be transported to suitable spoil disposal sites approved by the local EPB. All spoil disposal sites must be identified, designed and operated to minimize impacts and maximize land stability. Approved spoil disposal sites will be identified during detail project design, and defined in the construction tender documents. The spoil disposal site will be shaped and re-vegetated at the conclusion of disposal activity. The final height and shape of each disposal area will be determined by survey during the detailed design phase and will be based upon the resting stability of local spoil material and the surrounding topography.

232. During the period of active spoil disposal at a site, interception drainage channels will be established to protect the site from surface runoff. The spoil itself will be planted with grasses on completion. Spoil materials will be a mixture of soil and stone. In order to facilitate rehabilitation of these sites, topsoil will be stripped, stored safely, and used to cover the surface of the dump on completion of activities at that site. Local grass and shrub species will be planted.

233. Borrow pits will be at sites designated by local authorities for the purpose. Where the borrow pit is operating for other purposes, its use for the road subproject must be strictly in line with its existing operating parameters and restrictions. Where a new borrow pit will be opened for the subproject, a detailed borrow pit management and rehabilitation plan will be developed during the detailed engineering design by the design institute, and submitted to the local EPB for approval. Stabilization measures will include: (i) preserving existing vegetation where no construction activity is planned or temporarily preserving vegetation where activity is planned for a later date; (ii) applying temporary soil stabilization, such as covering with plastic film, geotextile, or similar materials to subgrade slopes if permanent protection works cannot be carried out in time during the rainy season; (iii) if necessary, applying erosion control blankets and check dams to control erosion in concentrated flow paths; and (iv) applying permanent soil stabilization measures, such as vegetation and revegetation upon completing construction, or when closing borrow site and its temporary access roads.

234. Erosion of disturbed surfaces. This is an urban and peri-urban construction Project dealing mainly with paved and covered surfaces in commercial, and residential locations. Soil surfaces exposed to erosion will be minimal. In this situation a Soil Erosion Prevention Plan is not required under PRC legislation. Limited soil erosion can be expected during the construction phase when surface vegetation and soil are damaged. Soil erosion can also occur after completion of construction in areas where site restoration has been inadequate.

235. The areas most vulnerable to erosion include earth borrow pits, spoil sites, temporary construction sites, and other areas where surface soil will be disturbed. The most effective erosion control will be interception drainage to protect disturbed surfaces from surface flows, especially from snow melt. Construction plans will include erosion control prescriptions for

62 construction work areas, including (i) constructing intercepting ditches and drains to prevent runoff entering construction sites, and diverting runoff from sites to existing drainage; (ii) limiting construction and material handling during periods of rains and high winds; and (iii) stabilizing all cut slopes, embankments, and other erosion-prone working areas while works are going on. All earthwork disturbance areas shall be stabilized within 30 days after earthworks have ceased at the sites.

236. Construction Wastewater. Construction wastewater is produced from the maintenance and cleaning of mechanical equipment and vehicles, maintenance water for mixing and curing concrete, cooling water, and lost water and soil during the construction period which is discharged as pollutants. The effluent, comprised mainly of inorganic wastewater, commonly contains no poisonous and harmful substance, except suspended solid, but, if discharged in an improper manner, still has the potential to impact existing water bodies. Some oil-containing wastewater can arise from machinery repairs.

237. Construction wastewater will not be discharged unto the surrounding soil or into surface water systems. Sedimentation tanks will be built, and after settling out of solids the upper clear liquid will be recycled for spraying the construction site (dust control), and the waste residue in the tank will be cleared and transported to designated landfills. Oil- containing wastewater will require the installation of oil-water separators before the sedimentation tank.

238. Gaseous Air Pollution. Construction machinery on all sites will consume petrol and diesel, releasing gaseous SO2, CO, and NOx. Equipment will be maintained to a high standard to ensure efficient running and fuel-burning. High-horsepower equipment will be provided with tail gas purifiers. Atmospheric monitoring will be carried out during the construction period. All vehicle emissions will be in compliance with relevant PRC emission standards.

239. Most subprojects will purchase pre-mixed asphalt for road surface paving. However, if any asphalt is heated and mixed on site, there is potential for flue gases emissions. Currently, modern asphalt mixing equipment used in PRC releases typical emission concentrations of asphalt flue gases of 22.7mg/m3. This figure complies with asphalt flue gas discharge requirements of 80-150mg/m3 of Atmospheric Pollutant Emission Standard (GB16297-1996). It also complies with the Ambient Air Quality Standard (GB3095-1996) which limits the concentration of benzopyrene at 0.01μg/m3 100 meters downwind from the asphalt mixing station. The use of this equipment will be stipulated by the EMP. Additionally, asphalt mixing stations will be sited at least 500 meters away from residential areas.

240. Dust. Road construction sites will potentially produce fugitive dust from material storage areas, dump sites, concrete mixing, excavation and general site usage – especially under windy conditions. Material stockpiles and concrete mixing equipment will be equipped with dust shrouds. The operators will regularly maintain the shrouds to ensure their effective operation. For both construction sites and construction roads, water spraying for the suppression of dust and maintenance of driving surfaces will be standard site management practice. Vehicles carrying soil, sand, or other fine materials to and from the construction sites will be covered.

241. Noise. Noise can be expected during construction due to construction machinery operation and transport activities. Construction activities will involve bulldozers, graders, excavators, concrete-mixing plants, rollers, and other heavy machinery. Noise intensity from these large machines operating is typically in the range of 80–98 decibels at the site (5m from operating machinery). The transport of material, aggregate, concrete and waste material to and from sites will also cause noise impacts along the haulage routes. Activities with intensive noise levels will not only have an impact on the residents, but may also cause

63 injury to construction workers operating the equipment. The major construction machinery noise testing values are shown in Table IV.11 below

Table IV.11: Testing Values of Construction Machinery Noise Distance between Measuring Site and Maximum Sound Level No. Machine Type Construction dB (A) Machinery (m) 1 Loader 5 90 2 Paver 5 87 3 Bulldozer 5 86 4 Roller 5 86 5 Excavator 5 84

242. Construction equipment noise source is considered as a point sound source, and the predictive mode is as follows:  r    LA  L0  20log   r0 

Where, LA and L0 are equipment noise sound levels at r and r0 respectively.

243. According to the model, noise levels at different distances are gained after calculating the impact scope of equipment noise during construction as in Table IV.12.

Table IV.12: Construction Equipment Noise Impact Distance Level dB Limit Standard dB Impact Range Distance (A) (A) (m) Construction Machinery 10 20 40 60 80 100 150 Day Night Day night Loader 84.0 78.0 72.0 68.4 66.0 64.0 60.5 75 55 29 281 Paver 81.0 75.0 69.0 65.4 63.0 61.0 57.5 70 55 35 199 Bulldozer 80.0 74.0 68.0 64.4 62.0 60.0 56.5 75 55 18 177 Roller 80.0 74.0 68.0 64.4 62.0 60.0 56.5 70 55 31 177 Excavator 78.0 72.0 66.0 62.4 60.0 58.0 54.5 75 55 14 140

244. The results show that, if construction machinery is used singly, the impact distance is 35m away from the source during the day and 281m at night. These impacts meet the PRC standard of Noise Limits for Construction Sites (GB12523-90) in distance. However, it will often be the case that a number of machines will be at use simultaneously during construction, and the noise impact scope will be consequently larger.

245. Noise impact sensitive points in the road subproject sites generally have street frontages or are within 35m from the construction site. Although the noise impacts will be transient and temporary the following mitigation measures are essential for construction activities to meet PRC construction site noise limits and to protect sensitive receptors. Construction at night shall be strictly prohibited. During daytime construction, the contractor will ensure that: (i) noise levels from equipment and machinery conform to the PRC standard of GB 12523-90, and properly maintain machinery to minimize noise; (ii) equipment with high noise and high vibration are not used in urban areas and only low noise machinery or the equipment with sound insulation is employed; (iii) sites for concrete-mixing plants and similar activities will be located at least 1 km away from sensitive areas such as residences, schools, and medical centers; and (iii) temporary anti-noise barriers will be installed to shield schools, residences and medical centers.

246. Traffic Management. The project construction traffic might cause temporary traffic congestion and inconvenience and safety issues to residents. Construction will be

64 undertaken section by section, which will improve efficiency and reduce the potential safety hazard during construction, but traffic congestion may still occur on some urban trunk road sections during rush hours. In mitigation, construction preparations should be fully finalised before the commencement of construction. Traffic on the roads near the construction area will be regulated by the local Traffic Management Bureau to avoid traffic congestions. Interim roads will be sited and managed to avoid traffic problems, and will be reinstated to their original condition on completion of construction. Transport and haulage routes will be selected to reduce disturbance to regular traffic, and construction traffic will be diverted during peak periods.

247. The contractors will co-ordinate with relevant departments (road, power supply, communication, etc) to deal with issues of removal and relocation of the facilities. An "advance notice" of construction will be published before the construction through radio and TV. Construction billboards, which include construction contents, schedule, responsible person and complaint phone number, will be erected at each construction site.

248. Construction Camps Solid Waste. The construction workforce will generate garbage (food wastes, kitchen wastes, paper, and other solid waste including food-laden wash water). Proper disposal of this waste will be essential. It will be the responsibility of the construction contractors to provide sufficient garbage bins at strategic locations and ensure that they are (i) protected from birds and vermin, (ii) emptied regularly (using the county seat solid waste system and landfill), and (iii) do not overflow.

249. Hazardous and Polluting Materials. Construction material handling and disposal guidelines and directions that includes spill responses will be prepared and implemented as part of the Site Environmental Management and Supervision Manual of each construction site. The following measures will be taken to prevent pollution of soil and surface water/groundwater: (i) storage facilities for fuels, oil, asphalt material, and chemicals will be within secured areas on impermeable surfaces, provided with bunds and cleanup installations; (ii) vehicles and equipment will be properly staged in designated areas to prevent contamination of soil and surface water; (iii) vehicle, machinery, and equipment maintenance and refueling will be carried out in such a way that spilled materials do not seep into the soil; (iv) oil traps will be provided for service areas and parking areas; (v) fuel storage and refilling areas will be located at least 300 m from drainage structures and important water bodies.

250. The contractors‘ fuel suppliers will be properly licensed, follow proper protocol for transferring fuel, and be in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

3. Bridges and Culverts

251. Although there are a large number of water crossings in the planned road subprojects, many will be accomplished by simple box culverts. There are only 6 river and canal crossings which require true bridging structures (pre-stressed concrete hollow slab or reinforced concrete rectangle slab). These are listed in Table IV.13 below.

Table IV.13: Bridges and Culverts Road Subproject Bridges Length (m) Culverts Length (m) Xinmin 3 110.4 - - Shenbei New Area (Qingshuitai and Xinglongtai) 1 40 5 128 Heishan - - 6 128 Huanren (Benxi City) 1 40 - - Gaizhou - - - - Waitoushan (Benxi City) 1 140 - -

65

252. The majority of waterbodies in the project area have been canalized with concrete banks and bed. In the urban areas these have very low water quality and minimal in-stream ecology. Bridging is either by box culvert or continuous beam. Only one water crossing exceeds 40m – this is the Beishahe River bridge at Benxi City where the river has high concrete banks.

253. The construction of river embankment, bridges and culverts may disrupt river hydrology through obstruction of peak flow and cause backup of water upstream. For the larger crossings, piles will be drilled during construction of the bridge foundation, which will disturb the river sediment and increase suspended solid (SS) concentration in the river water body. It is unlikely that bridge construction will contribute to bank erosion or cause further excessive amounts of sediment to enter the water due to the concrete channel banks of most waterways.

254. Mitigation of these impacts will be achieved through the following measures: (i) Both the river embankment and the bridge pier constructions will be conducted during the dry season (from October to next May), and construction during the rainy season shall be prohibited; (ii) on non-canalized banks (or where concrete banks are temporarily cut to construct bridge abutments) banks will be protected by matting and sediment traps, and on the completion of construction by the planting of grass and stabilizing vegetation to prevent soil and water loss; (iii) Slurry from pile drilling in the river bed will be pumped to shore and properly disposed of. This will reduce the disturbance of sediments and the impact on water quality; and (iv) Pier construction in the waterbodies will be planned and laid out to ensure adequate opening for water flow.

255. Contamination of the waterbody may result from the inappropriate transfer, storage, and disposal of petroleum products, chemicals, hazardous materials, liquids and solid waste. The provisions for handling and disposal of hazardous and polluting substances (above) should be expanded to include special provisions to protect water quality during the construction of bridges and culverts.

4. Wastewater Treatment Plants

256. The range of potential construction impacts and mitigation measures described for the road subproject are relevant to the construction of the WWTP, except that its isolated location means that there is an absence of sensitive receptor sites and therefore construction noise and dust are not significant issues for neighbors.

257. Noise. The nearest sensitive receptors to the construction site are more than 200m distant. The analysis in the EIA of noise produced by construction machinery 150m away is 49-62.5dB. It is therefore concluded that construction noise in both day and night would meet the requirement Noise Limits for Construction Sites (GB12523-90) at the nearest sensitive receptor of 55 dB at night and 65 dB in the daytime.

258. Construction Wastewater and Pollutants. Since by design the WWTP will be adjacent to a waterway, any construction wastewater produced on the construction site may enter the waterway. Although the waterway (the Chang river) has very poor existing water quality, leaking construction wastewater may further reduce the water quality through increases in suspended matter, leakage of construction material (i.e. concrete), and mechanical oil leaks.

259. Site planning, management and safeguards will be needed to prevent these impacts: (i) storage facilities for fuels, oil, and other hazardous materials shall be within secured areas on impermeable surfaces, and provided with bunds and cleanup installations; (ii) vehicles

66 and equipment will be properly staged in designated areas to prevent contamination of soil and surface water; (iii) vehicle, machinery and equipment maintenance and refueling shall be properly carried out so that spilled materials do not seep into the soil; (iv) oil traps shall be provided for service areas and parking areas; and (v) fuel storage and refilling areas will be located at least 300 m from drainage structures and important water bodies; and material stockpiles will be protected against wind and runoff waters which might transport them to the rivers. Construction units should build pit toilets for their use during the construction period.

260. Pipelines. The total length of the wastewater pipeline network for Qingshuitai is 18.744 km, of which 8.244 will be laid below the road subprojects in the same town, and the remaining 10.5 km will be entrenched along the verges of existing roads. There will be no or minimum incremental impact on environment. The construction of pipelines will be a part of the road construction and the impact mitigations measures integrated with those for the roadworks.

5. Heating Pipelines and HES

261. The installation of new heating pipelines and heat exchange stations in Sihe Township, Fuxin City, will be undertaken as part of the development and construction of a new urban area which is already underway. The scope of the subproject consists of 12.6 km of primary heating pipelines, 19.1 km of secondary heating pipelines, 12 HESs including civil work, equipment and auxiliary facilities. The heating area of the subproject will be 3 million m2, all of which will be newly-built buildings.

262. For the hot water transmission line in this subproject, the direct-bury method will be used. In comparison to the traditional buried pipe, the pre-insulated pipe has much less heat loss due to its superior insulation properties. The maximum pipe size is DN700 mm, and the network layout is in compliance with the city‘s master plan. Compared to on-site insulation pipe buried in a tunnel, a direct-buried pre-insulation bonded pipe has many advantages, such as lower capital cost, reduced heat losses, improved energy efficiency, better anti- corrosive and insulation performance, longer service life, limited land required, and shorter installation cycles. This will convert into lower construction impacts with trenches dug and pipes laid in the same operation with no period of open trenching or exposed earthworks. Construction safeguards for pipeline-laying will be implemented. These will include: soil stabilization, dust and noise control as well as management of the impacts from machinery operation, transport and haulage of materials.

263. Construction Waste. Solid waste will be regularly transported off-site by the contractor for disposal at designated landfill sites in compliance with the Law on the Prevention and Control of Environmental Pollution by Solid Waste of PRC (2004) and scrap material and demolition waste disposal standards promulgated by the Ministry of Housing and Urban-Rural Development.

F. Impacts and Mitigation Measures during the Operational Phase

1. Operation of Roads, Drains and Bridges

264. Soil erosion. During project operation, no significant soil erosion is expected if all slope protection measures and drainage, properly installed during construction, are adequately maintained. For proper maintenance, regular inspection will be important to detect signs of slope instability and ensure re-vegetation. Road drainage structures will be regularly monitored by the operating agency for each road subproject (see list at Chapter IX, section B) to ensure efficient operation.

265. Hydrology. Typical potential impacts from bridges and culverts include (i) Alteration

67 to the natural flow pattern and hydraulic capacity of the stream; (ii) Increase in erosion due to concentration of flow; (iii) Increased risk of blockage or damage due to debris; (v) Reduction in flora and fauna habitat in the vicinity of the crossing; (vi) Increased extent of flooding upstream. In the case of the water crossings associated with the road subproject, the majority of waterbodies have been canalized with concrete banks and bed. In the urban areas these have very low water quality (Class IV and V) and therefore minimal in-stream ecology. Bridging is either by box culvert or continuous beam where the in-stream structures (box culvert sides or piles) account for less than 25% of the bed width. The flow in these waterways is low and the flood design for all bridging structures is for a 1 in 100 year flood.

266. Air Pollution. Using traffic volume projections provided in the subproject FSRs and model computations, vehicle exhaust pollutant volumes at average traffic volumes during the operation period for sensitive zones were quantified by the EIA Institutes for the 6 road subprojects. The computations used a diffusion model (either CALINE4 or the model recommended by the Environmental Impact Assessment Technical Regulation for Road Components (JTJ005-96)) to model pollutant concentrations on both sides of the roads.

267. In subprojects where there are numerous individual road components (e.g in Xinmin there are 45 separate roads; and in Shenbei New Area there are 24 roads) the authors of the PRC EIAs chose representative or ―worst case‖ roads to analyze for air pollution and have generalized any required mitigation measures from them. The predicted air quality performance of the 13 selected roads from the road subprojects is summarized below in terms of their compliance or non-compliance with Class II Standard of the Ambient Air Quality Standard (GB3095-1996), which is the appropriate assessment standard for the scale of roads in the subprojects.

Table IV.14: Air Quality Predictions of Selected Roads in the operational Period (2015, 2020, 2030) Subproject Roads Type of Compliance with Conditions of any Non- Road Standards compliance with PRC Regulations Xinmin South No. 2 New main Meets Class II Rd road Standard and EHS guidelines for CO and PM. Exceeds standards for Exceeds standards within 60m of NOx in 2020 and 2030 centerline in low dispersion conditions Qingzhinsi New Meets Class II East Road branch Standard and EHS road guidelines for CO and PM. Exceeds standards for Exceeds standards within 20m of NOx in 2020 and 2030 centerline in low dispersion conditions, in rush hour traffic volumes Nanwaihuan Upgraded Meets Class II Road branch Standard and EHS road guidelines for CO and PM. Exceeds standards for Exceeds standards within 80m of NOx in 2030 only centerline in low dispersion conditions. Analysis of no upgrade shows exceedence 75% higher in 2020 and 2030.

68 Subproject Roads Type of Compliance with Conditions of any Non- Road Standards compliance with PRC Regulations Shenbei Qingshuitai New Meets Class II New ―worst case‖ secondary Standard and EHS District road road guidelines for CO. Exceeds standards for Exceeds standards within 20m of NOx in 2020 only centerline in low dispersion conditions. Xinglongtai New main Exceeds standards for Exceeds standards within 20m of ―worst case‖ road CO in 2020 only centerline in low dispersion road conditions. Exceeds standards for Exceeds standards within 60m of NOx in 2020 only centerline in low dispersion conditions. Heishan Jeifang Upgraded Meets Class II Street main road Standard and EHS guidelines for CO, NOx and THC. Bintie Street New main Meets Class II road Standard and EHS guidelines for CO, NOx and THC. Exceeds standards for Marginally exceeds Class II NOx in 2030 only Standard and EHS guidelines within 20-40m of centerline in low dispersion conditions. Xingongye New main Meets Class II Avenue road Standard and EHS guidelines for CO, NOx and THC. Meets Class II Marginally exceeds Class II Standard and EHS Standard and EHS guidelines guidelines for CO, NOx within 20-40m of centerline in and THC. low dispersion conditions. Gaizhou Beichen New main Exceeds standards for Marginally exceeds Class II Road ―worst road NOx in operational Standard and EHS guidelines case‖ road period within 20-40m of centerline in low dispersion conditions. Huanren Hunjiang New Meets Class II Avenue secondary Standard and EHS road guidelines for CO, NOx and THC. Zhongxin Upgraded Meets Class II Street secondary Standard and EHS road guidelines for CO, NOx and THC. Waitoushan Songlin New main Meets Class II (Benxi) Street road Standard and EHS guidelines for CO and NOx. No.1 Road Upgraded Meets Class II secondary Standard and EHS road guidelines for CO and NOx.

268. The table shows that for operational period air quality the best environmental performance for road subprojects are the Huanren, Waitoushan and Heishan subprojects – which meet Class II Standard of the Ambient Air Quality Standard (GB3095-1996) and EHS

69 guidelines for CO, NOx and THC in the short (2015) and medium term (2020). Huanren and Waitoushan also comply in the long term, and Heishan only marginally exceeds the standard in the long term (2030).

269. The other road subprojects all comply with the PRC standards and EHS guidelines for CO in the short term and, in the case of Xinmin, for the medium and long term.

270. The main exceedence parameter is NOx. Xinmin, Shenbei and Gaizhou all exceed PRC Class II Standard and EHS guideline for NOx in the medium and long term. The most significant predicted impact is for Nanwaihuan Rd, Xinmin, and Xinglongtai, Shenbei, where NOx exceeds standard for a distance of 60-80m of the road centerline in the medium and long term.

271. Air Pollution Mitigation. Policies and measures for emission control of vehicle exhaust pollutants have been formulated by the state and local authorities, enabling them in both action and awareness-raising, to take measures to control the exhaust pollutants emission of vehicles running on the road under this project.

272. In 2001 PRC promulgated and implemented the Limits and Measurement Methods for Emissions of Pollutants from Light-Duty Vehicles (GB 18352.1-2001)"; from 2003 onwards, heavy vehicles have been required to comply with a similar pollution limiting standards (GB17691 -2001& GB14762-2002). Compliance with these standards is now automatic for new vehicles, and older vehicles are gradually being forced to comply or put off the road.

273. Noise Pollution. The assessments in the PRC EIAs have used the highway noise prediction model as recommended in Appendix A.2 of HJ 2.4-2009 Technical Guidelines for Assessment of Environmental Impact -- Acoustical Environment. It has also used the horizontal noise generation of vehicles at speed from Annex C of Assessment Criterion on Environmental Impact in Highway Construction Project (JTG B03-2006) and the attenuation effects of building groups in GB/T 17247.2.

274. Using average running velocity of various vehicles type and the calculation of noise at source, the distance at which compliance with PRC ambient noise standards (Class 2 and 4 for different categories of roads) are reached have been calculated in each EIA. The analyses then used these noise/distance calculations to predict the future noise levels at sensitive receptors along the routes.

275. In subprojects where there are numerous individual road components (e.g in Xinmin there are 45 separate roads; and in Shenbei New Area there are 24 roads) the authors of the PRC EIAs chose representative or ―worst case‖ roads to analyze for noise levels and have generalized any required mitigation measures from them. The predicted noise levels of the 13 selected roads from the road subprojects is summarized below in terms of their compliance or non-compliance with the relevant standards of the Noise Environmental Quality Standard (GB3096-2008). For those subprojects which analyze only selected components, the results of the analysis are indicative and are taken to flag the need for operational noise monitoring and funding to provide sound-proofing of affected properties. Where all major road components in a subproject have been analyzed, the appropriate mitigation measures are identified.

70 Table IV.15: Noise Level Predictions of Selected Roads in the operational Period (2015, 2020, 2030) Subproject Roads Type of Compliance with Degree of Non- Mitigation Road Standards at compliance Measures nearest Required Sensitive receivers Xinmin South No. 2 New main Meets Class 4 Rd road Standard and EHS guidelines Qingzhinsi New Meets Class 2 East Road branch Standard and road EHS guidelines for CO and PM. Nanwaihuan Upgraded Meets Class 2 Road branch Standard and road EHS guidelines. Shenbei Qingshuitai New Meets Class 4 New ―worst case‖ secondary Standard and District road road EHS guidelines for daytime. Exceeds PRC Exceeds PRC Since this is the Class 4 Standard nighttime ―worst case‖ road, for nighttime standard within subproject requires 7-15m of full noise analysis shoulder by < of all roads before 3dB in short construction to term, but > 3 dB identify where in long term mitigation (2030). measures are required. Xinglongtai New main Meets Class 4 ―worst case‖ road Standard and road EHS guidelines for daytime. Exceeds PRC Exceeds PRC Since this is the Class 4 Standard nighttime ―worst case‖ road, for nighttime standard within subproject requires 7-15m of full noise analysis shoulder by < of all roads before 3dB in short construction to term, but > 3 dB identify where in long term mitigation (2030). measures are required. Heishan Jeifang Upgraded Meets Class 2 Street main road and 4 Standards for all sensitive receptor sites. Bintie Street New main Meets Class 2 road and 4 Standards for all sensitive receptor sites except for one sensitive site (see below). Exceeds Class 2 Exceeds Class 2 Requires barrier Standards for the day and night by wall, landscaped Heishan County < 3dB in 2015 buffer at least 10m,

71 Subproject Roads Type of Compliance with Degree of Non- Mitigation Road Standards at compliance Measures nearest Required Sensitive receivers Gericonium. and 2020. and installation of Exceeds by > 3 ventilated sound dB in 2030. insulation windows Xingongye New main Exceeds PRC Exceeds Class 4 Installation of Avenue road Class 4 Standard night by < 3dB in ventilated sound for nighttime for a all operational insulation windows number of periods. sensitive receptor sites. Exceeds PRC Exceeds PRC Installation of Class 1 Standard Class 1 Standard ventilated sound for Qing River by < 3 dB in all insulation windows Community operational sensitive receptor periods and at site. day and night. Gaizhou Beichen New main Exceeds Class 2 Exceeds PRC Since this is the Road ―worst road Standards for all Class 2 Standard ―worst case‖ road, case‖ road residences within in all operational subproject requires 20m of centreline. periods and at full noise analysis day and night. of all roads before construction to identify where mitigation measures are required. Exceeds Class 4 Exceeds PRC Since this is the Standards for all Class 4 Standard ―worst case‖ road, residences within in all operational subproject requires 30m of centreline. periods at full noise analysis nighttime only of all roads before construction to identify where mitigation measures are required. Huanren Hunjiang New Exceeds Class 2 Exceeds Class 2 Installation of Avenue secondary Standard in the Standard by < ventilated sound road day for 2 of the 8 3.3 dB insulation windows sensitive receptor for affected sites in the properties in the medium and long medium term and term. noise mitigation funds reserved for mitigation measures in the long term. Exceeds Class 2 Exceeds Class 2 Installation of and 4 Standards and 4 Standards ventilated sound in the night for a by < 4.4 dB insulation windows number of for affected sensitive receptor properties in the sites in the short, short to medium medium and long term and noise term. mitigation funds reserved for

72 Subproject Roads Type of Compliance with Degree of Non- Mitigation Road Standards at compliance Measures nearest Required Sensitive receivers mitigation measures in the long term. Zhongxin Upgraded Meets Class 2 Street secondary and 4 Standards road for all sensitive receptor sites in the short and medium term. Exceeds Class 4 Exceeds Class 4 Noise mitigation Standard in the Standard by < funds reserved for night for 12 of the 1.8 dB at night in mitigation 23 sensitive 2030. measures in the receptor sites in long term the long term. Waitoushan Songlin New main Meets Class 2 (Benxi) Street road and 4 Standards for all sensitive receptor sites in the short term. Exceeds Class 2 Exceeds Class 2 Installation of Standard in the Standard by < ventilated sound day and night for 3.1 dB day and insulation windows all 3 sensitive night in 2020 and for affected receptor sites in 2030. properties in the the medium and medium term and long term. noise mitigation funds reserved for mitigation measures in the long term. Exceeds Class 4 Exceeds Class 4 Noise mitigation Standard in the Standard by < funds reserved for night for 2 of the 1.7 dB at night in mitigation 3 sensitive 2030. measures in the receptor sites in long term the long term. No.1 Road Upgraded Exceeds PRC Exceeds Class 4 Installation of secondary Class 4 Standard night by up to ventilated sound road for nighttime for a 4.1-6 dB in 2015 insulation windows 1 sensitive and 2020. and noise barriers. receptor site in the short and medium term. Exceeds Class 2 Significantly Noise mitigation and 4 Standard at exceeds Class 2 funds reserved for all times and for and 4 Standards more stringent all (2) receptor by >5 dB in mitigation sites in the long 2030. measures in the term. long term Where Class 2 standard of the Noise Environmental Quality Standard (GB3096-2008) is exceeded EHS guidelines, which are slightly more stringent, will also be exceeded. However, for PRC Class 4, the corresponding EHS guideline is much higher and rarely exceeded.

276. The table shows that operational noise levels for new and upgraded roads in the

73 Xinmin subproject will comply with relevant PRC standards and EHS guidelines for the full operational period. Although only a sample of the 45 road components of the Xinmin subproject have been analyzed, the selected ones represent the more densely urbanized areas and highest predicted traffic volumes. Their compliance with noise standards therefore indicates compliance in the other less busy roads in the subproject.

277. All other road subprojects will require noise mitigation measures for a number of sensitive sites along the alignments. For subprojects at Heishan and Huanren only small exceedences are predicted and will be mitigated by the installation of ventilated sound insulation windows for affected properties in the short and medium term and noise mitigation funds reserved for mitigation measures in the long term.

278. In the Waitoushan subproject, predicted noise levels exceed PRC Class 4 standard for one component (No.1 Rd) and will require the construction of noise barriers in addition to the usual residential sound-proofing works. One sensitive receptor site in the Heishan subproject, the geriatric clinic on Bintie Street, will also require additional mitigation measures in the form of a noise barrier wall and noise-absorbing landscaping.

279. The analyses for the remaining subprojects, Shenbei and Gaizhou, have looked at worst case roads (high urbanization and high traffic volumes) and have predicted exceedence of standards. In these cases, their indicative value for other road components in the subproject is low. There is therefore a requirement for Shenbei and Gaizhou road subprojects, that before construction commences a full predictive analysis of sensitive receptor sites along all roads be carried out and that funds for noise mitigation at affected properties be reserved.

280. Additional mitigation of traffic noise will be gained by sound planning decisions by local authorities. This should include good land use planning along new roads. Schools, hospitals, apartments for the elderly, and hotels should not be built within 50 m of the centre lines of new roads. Set-backs from the roadside should be enforced and used as greening belts and pavements.

281. Hazardous Goods Haulage. The haulage of hazardous goods on the new and upgraded roads raises the possibility of destructive pollution to water, villages and towns surroundings caused by traffic accidents, especially when hazardous goods are transported across rivers or environmental sensitive spots during the operation period. Hazardous goods for road transport in the project‘s areas of influence include petrol, chemical fertilizer and farm chemicals. By combining estimated risk occurrence frequencies at predicted traffic volume at sensitive road sections, the probability of destructive pollution produced in these areas was predicted.

282. In order to further reduce the risk of pollution by spillage of dangerous goods, an emergency preparedness and response mechanism will be developed and implemented by all counties with road subprojects.

283. Emergency Preparedness and Response Planning. In PRC the various levels of government have put in place emergency preparedness and response procedures. The National Master Plan for Public Emergency Preparedness and Response was released by the State Council on 8 January 2006. The national master plan establishes the principles, policy and institutional framework for preparing and responding to public emergencies. It classifies public emergency events into four general categories: (i) natural disasters, including flood and drought, meteorological calamities, earthquakes, geological hazards, marine disasters, biological disasters and forest and grassland fires; (ii) accidental disasters, such as various industrial and mining safety accidents, transport accidents, public facility accidents, environmental pollution and ecological damage; (iii) public health emergencies,

74 including outbreak of infectious diseases, occupational diseases, animal diseases and food poisoning; and (iv) social safety events. Provinces, in turn, have proclaimed master plans for public emergency preparedness and response. All the Project counties, districts and cities have Emergency Preparedness and Response Plans (EPRPs), and sectoral plans as would be appropriate for city or township road networks take their place within this hierarchy. Currently, none of the IAs of the subprojects have EPRPs, nor have they been developed as part of the PRC EIA process. As part of project implementation, IAs will need to prepare and promulgate EPRPs which use the provisions of the relevant county, district or city plan and include the following contents.

Table IV. 16: Contents of Emergency Preparedness and Response Plans Element Contents Coverage All activity and infrastructure areas covered by the plan, as well as environmental protection targets for environmental media which might be affected by an emergency. Organization Emergency offices and personnel who will implement the plan, and their levels of responsibility. Level of emergency and Levels of emergency which will trigger corresponding response response procedures Response and rescue tools Response facilities, equipment and instruments Early warning and Early warning and communication means, channels, transportation communication and traffic control Inspection and monitoring Professional teams which are responsible for reconnaissance, monitoring, and assessment of the nature, parameters and consequences of the emergency, for the purpose of informed decision making Containment and cleanup Pollution containment and cleanup measures and equipment for emergency site, adjacent area and fire control area Evacuation Evacuation planning and organization, medical rescue and public health protection Termination and restoration Emergency termination procedure and post-emergency restoration plan Training Emergency preparedness and response training and drills Public education and Public education and information dissemination program for local information communities

2. Operation of Wastewater Collection and Treatment Subproject

284. Effluent Discharge. The WWTP at Qingshuitai is designed to discharge high quality treated effluent, since it will discharge to a waterbody which flows through neighboring communities and into the Liao River basin. The discharge quality will meet the highest standard, Class 1A, of Pollutants Discharge Standards of Town Sewage Treatment Plants (GB18918-2002).

285. No data on inflow wastewater quality were available for Qingshuitai Township at the FSR and PRC EIA stage. The wastewater generated in the service area will be dominated by domestic wastewater19. The FSR has predicted the WWTP influent quality

19 Over 95% of the influent wastewater will be domestic wastewater, with less than 5% wastewater from the domestic poultry industry.

75 based on the data of general influent quality received by other small and medium-sized municipal WWTPs in neighboring area, the PRC Water Quality Standards for Wastewater Discharges into Urban Sewerage Networks (CJ 3082-1999) and the PRC Code for Design of Outdoor Wastewater Engineering (GB 50014-2006). Further verification of the design influent volume and quality parameters will be undertaken during the detailed design phase, including lab tests if deemed necessary. Prior to commissioning of the WWTP, a series of tests will be conducted to ensure proper functioning of the WWTP. Compliance monitoring will be undertaken prior to and during WWTP operation to ensure that effluents meet class 1A of Discharge Standards of Pollutants for Municipal WWTPs (GB18918-2002). This is reflected in the EMP. Table IV.17 below shows the design inflow and discharge for the plant.

Table IV.17: Design Inflow and Effluent Standards

Pollutant CODcr BOD5 SS NH3-N TP Design inflow quality (mg/L) 340 170 160 25 3 Design effluent quality (mg/L) ≤50 ≤10 ≤10 ≤5 ≤0.5 Class 1a Discharge standards mg/L ≤50 ≤10 ≤10 ≤5-8 ≤0.5

286. In Chapter III the quality of the receiving water is provided (based on sampling in April 2010 and July 2011). The quality of the receiving water includes the effects of low quality discharges of wastewater from the existing WWTP and the additional general discharge of untreated sewage directly into the waterways, bypassing the existing inadequate WWTP. The new WWTP will therefore act to clean up the receiving water in two ways: (i) by discharging into the waterbody a treated effluent which is significantly higher in quality than that of the receiving waters; and (ii) by the closure of the existing WWTP and extension of sewerage reticulation into previously unsewered areas.

287. Table IV.18 shows a comparison of treated effluent quality with the existing water quality of the receiving waterbody. Rated discharge qualities from the proposed WWTP of Class 1A standard and the closure and rehabilitation of the old existing facility will result in a cleanup of the receiving water and higher quality downstream.

Table IV.18: Comparison of Receiving Water and Effluent Quality

CODcr BOD5 SS NH3-N TP Receiving waterbody water quality, Chang River upstream of existing 70.2 - - 0.7 0.47 WWTP (mg/L) Design effluent quality from new ≤50 ≤10 ≤10 ≤5 ≤0.5 WWTPs(mg/L)

288. Receiving Water body Clean-up. The contributions of the new WWTP to improvements in the water quality of the Chang River can be seen by the amounts of pollutants removed by the plant and the volume of water returned to the receiving waters. These are shown below in Table IV.19.

76 Table IV. 19: Pollution Load Removal

Pollutant BOD5 SS NH3-N TP Pollution Load Removed before 0.025 1.6 (93.3%) 1.5 (93.75%) 0.2 (83.3%) Discharge (t/d) (90%) Qingshuitai Discharge load discharge 0.10 0.10 0.05 0.005 (t/d) quantity 10,000t/d

289. Air emissions. Malodorous gases generated during sewage collection and treatment (including sewage grating room, sedimentation tank, oxidation pond, secondary sedimentation tank) will impact upon the environment within and around the plant area. The concentration of malodorous gas is related to wastewater quality, and its dispersal is related to meteorological conditions and terrain.

290. The subproject will comply with Class II standard of the Emission Standard for Odor Pollutants (GB14554-93). Boundary standards of odor pollutants plant are defined in Table IV.20.

Table IV.20: Boundary Standard of Odor Pollutants Controlled Class II Unit Class I Pollutants New Sites Existing Sites Ammonia mg/m3 1.0 1.5 2.0 Hydrogen sulfide mg/m3 0.03 0.06 0.10

291. A calculation of the dispersion of the main air-borne pollutants has been undertaken using the air environmental protection distance computation method regulated in ―Technical Guidelines for Environmental Impact Assessment - Air Environment‖ (HJ 2.2-2008). The calculated distance separations between the source and sensitive receptors are shown in Table IV.21 below. The siting of the WWTP is at least 300m from the nearest habitation or sensitive site and therefore conforms to this standard.

Table IV.21: Results of Air Environmental Protection Distance Calculations methyl dimethyl trimethyl hydrothion ammonia mercaptan sulfide amine Environmental 50 50 100 50 50 protection distance (m)

292. Solid Waste. Primary filtration residue mainly consist of floating solids, discarded plastic, sticks and leaves, and generally contains no toxic and harmful substances. Sludge mainly comes from the grit chamber, oxidation ditch and secondary settling tank. Primary filtration residue will be dried, baled, and transported to designated landfills for burying by semi-closed dump truck.

293. Sewage Sludge Treatment and Utilization. Sludge from sewage treatment plants is a concentrate consisting of solid matter and sediment in the sewage along with residues of biological and chemical compounds.

294. Sludge generated in the secondary sedimentation tank will be directed to the sludge pumping station. Part of the sludge will be pumped back to the reaction tank as active sludge. The rest will be pumped into the sludge treatment facility, where it will be thickened and then dewatered by centrifuge dewatering devices. The dewatered sludge (dewatered to water content below 80%) then will be transported to the Shenyang Sludge

77 Treatment Plant (SSTP). Here it will be further treated for final utilization as compost for agricultural and landscaping application. A letter to this effect is at Appendix 4. The FSR also notes that currently a small percentage of sludge at the SSTP is being re-used as construction material. This is an emerging and environment-friendly way for sludge disposal in the PRC, and the share of sludge from the SSTP used in this way is expected to increase in the future.

295. Sludge dry weight from Qingshuitai will be 584t/a. From the nature of the service area20, the sludge will not contain significant concentrations of heavy metals and, after disinfection, will comply with the relevant PRC standard (GB18918-2002) for re-utilization. This will be confirmed by laboratory testing as part of the plant‘s operational monitoring. The operator of the SSTP (Shenyang City Shenbei Water Works) has confirmed its capacity and readiness to accept and process this volume of sludge from the WWTP. An emergency sludge holding pond and sludge stabilization facility will be provided at the WWTP site for temporary storage of sludge in the event of malfunction/temporary closure of the centralized sludge treatment plant. The laboratory will also certify sludge quality where emergency re- direction of sludge to landfill is required. A back-up system and emergency response plan for sludge storage and landfill disposal in case of temporary closure of the centralized sludge treatment plant will be developed during detailed design. This requirement is defined in the EMP, Table IX.2.

296. Overflow at WWTP. The WWTP will have standby equipment to reduce the risk of accidental overflow. Pumping stations will adopt dual-power supply lines, as well as proper operation and maintenance and process controls that include emergency plans. Water drainage and storm-water systems will be cleaned regularly. With these measures in place, there is a risk of accidental release of high-concentration wastewater at the WWTP, due to a possible malfunctioning of the electric, mechanical or control system, or the failure of the biological treatment process as a result of shock loads or chronic system overload. This risk has been identified and assessed in the FSR.

297. The defined mitigation measures include: (i) spare parts for key components; (ii) regular inspection and proper maintenance of the WWTP; (iii) regular staff training; and (iv) automated online, real-time monitoring of influent and effluent quality. An emergency holding pond with a volume equivalent to 12 hours operation will be constructed as part of each plant to deal with a possible accidental release. The investment for the emergency holding pond, together with an emergency environmental monitoring reserve fund, has been incorporated into the overall investment project budget. The 12 hours of holding time will allow adequate time for emergency repairs to a malfunctioning system.

298. WWTP operation training and monitoring. Training of the operator is therefore essential to avoid treatment process failure. The procurement of the hardware will include hands-on training of the operators and plant operation supervision during the initial stage of operation, and technical help will be made available to the facility operator in case operational problems would arise, such as during winter when microbiological activity maybe low and biofilm sloughing may occur. This requirement is covered through a loan covenant in the Project Agreement. In addition, an in-house analytical lab will be established prior to operation of each of the WWTP. The major analytical equipment will include the following: wastewater sampler, pH meter, flow meter, conductivity meter, UV/VIS spectrophotometer, DO meter, COD speedy tester, thermostat incubator, electric balance, centrifuge and Muffe

20 100% domestic sewage at Xinglongtai.

78 furnace.

299. An emergency preparedness and response plan will be formulated and put in place before the WWTP becomes operational. The emergency preparedness and response plan will address, among other things, training, resources, responsibilities, communication, procedures, and other aspects required to respond effectively to emergencies associated with the risk of accidental discharges. Appropriate information about emergency preparedness and response activities, resources, and responsibilities will be disclosed to affected communities.

300. Noise. Operational noise comes from mechanical equipment such as waste water lift pumping, return sludge pump and grid screen rotation. Cumulative noise from these sources is predicted at 88~95 dB(A). Noise impact will be experienced by employees (see Section E ―Occupational Health and Safety‖). The level of external noise is lower than the class III Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008).

301. Operational Monitoring. The WWTP will be required to comply with the Class 1A of the PRC Standards for Pollutant Discharges of Municipal WWTPs (GB18918-2002). Economic and financial analyses of the wastewater treatment components, including of financial sustainability, were conducted. These analyses confirmed their financial viability, and ability to operate sustainably at design standards. Relevant assurances have been agreed regarding tariff levels and subsidies. In accordance with the PRC Guideline on Environmental Protection Audit upon Completion of Construction Projects (1991), the WWTP will undergo an audit within three months of trial operation against the mitigation measures contained in the EMP. On-line monitoring equipment will be installed to monitor the water quality of the influent and effluent and the quality of the sludge to be transferred to the Shenyang Sludge Treatment Plant. Regular maintenance will be implemented strictly to ensure normal operation of all equipment.

3. Operation of Heating Pipelines and Heat Exchange Stations

302. The operation of the heating subproject at Sihe Township, Fuxin City, will bring heating to the residents of a new urban area totaling 3 million m2. The subproject will significantly reduce overall coal consumption, and improve the City‘s air quality by using a CHP heat source (the Fuxin CHP Plant) with combustion and emission control equipment, while at the same time decommissioning small local boilers and domestic heating stoves.

303. The large scale decommissioning of domestic heating stoves, which provides a significant amount of the offsetting of the impacts of new heat production, will be accomplished as a consequence of the re-housing of that number of households in nearby flatted areas. The households will be rehoused into the 3 million m2 of new apartments as part of urban renewal and new urban district of Fuxin development in line with the strategies on the central Liaoning‘s city clusters development, revitalization of the old industrial heartland, and promotion of the Fuxin economic transformation. The household stoves along with the housing will be demolished and the new accommodation will be heated by the subproject heating arrangement. In this way, the take-up of new heating facilities by the households and decommissioning of superseded boilers and stoves is assured.

304. The reduction of the single-family stoves, a point source for indoor air pollution, will have a significant positive impact on residents‘ health and well-being, especially the poor. Water and soil pollution will indirectly improve as a result of the reduction of TSP, PM10, SO2, NOx and other harmful compounds that contribute to acid rain, water pollution, and decrease crop production.

305. The subproject, along with the closure of the small coal-fired boilers and family

79 heating stoves, will reduce (i) raw coal consumption by 30,199 t/a, resulting in CO2 emissions reduction of 53,690 t/a; (ii) emissions of SO2, NOx and particulates by 302 t/a, 734 t/a and 5,543 t/a, respectively21. There will also be unquantified reductions in coal and ash haulage costs and emissions.

306. The CHP is an existing, operating facility in Fuxin, with spare heating capacity to provide the 150 MW of heating required by the new Sihe town developments. Environmental due diligence of the CHP, and the accounting of the CHP‘s GHG emissions in providing this heat, as required by the ADB SPS22, is presented in Chapter V.

307. Heat exchange stations. Twelve new HESs will be built under this subproject. All will be connected by the primary heating pipeline and form the primary district heating system. A typical HES is equipped with plate heat exchangers, circulating pumps, water- softening equipment, and water-adding devices. A frequency modulating controller will be used for regulating the circulating pump. The stations will have a buffer distance of at least 15 m from the nearest household and will use low-noise water pumps with noise levels controlled to within 55 dB(A) at a distance of 1m from the pump house. There will be no operational noise impact from the heat exchange stations.

308. Households which are adjacent to existing heat-exchange stations experience indoor noise levels in the range 52dB(A)~55dB(A). These levels meet the PRC standard and the World Bank Group EHS standard. In public consultations residents reported that the heat- exchange station noise does not have great negative impact on their domestic life.

309. Each HES, depending on its size, is expected to generate 30~45 m3/d of backwash effluent, which has a relatively low pH. Mitigation measures include:

(i) An equalization and sedimentation tank of about 50m3 will be built in each HES for pH adjustment and sedimentation (SS≤400mg/L) before the backwash effluent is discharged into the municipal sewer;

(ii) Regularly clean the sedimentation tank, dispose of accumulated sludge and sediments in the municipal landfill; and

(iii) Conduct internal and compliance monitoring for the backwash effluent based on the EMP before discharging into the sewer.

310. The HESs will be unattended during operation; only a few workers will be kept at HESs for supervision and maintenance. There will be no canteen on the premises. The quantities of wastewater and solid waste generated by the workers will be very small, and wastewater will be discharged into the municipal sewer.

G. Health and Safety (Construction and Operational Phases)

311. The objective of environmental health and safety is to provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease. It also covers the establishment of preventive and emergency preparedness and response measures to avoid,

21 These savings are a total of heat production efficiency at the CHP, and from the decommissioning of small local boilers and domestic heating stoves. 22 ADB 2009, Safeguard Policy Statement, Manila.

80 and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities. It is therefore a combination of occupational health and safety of staff/workers at the subproject facilities and community health and safety of people living nearby or potentially affected by failures or poor operation of facilities.

312. The civil works contractors will implement adequate precautions to protect the health and safety of construction workers. The occupational health and safety risks will be managed by applying measures in the following order of preference: avoiding, controlling, minimizing hazards, and providing adequate protective equipment. As part of each contractor‘s Site Environmental Management and Supervision Manual, each contractor will prepare an Environmental Health and Safety Management Plan (EHSMP) for the construction workers as required by the EMP. It will be submitted to the PMO for review and appraisal. The detailed EHSMP will include the following provisions:

(i) Clean water. Provide a clean and sufficient supply of fresh water, for construction and for all houses, camps, offices, laboratories and workshops.

(ii) Sewage and wastewater. Provide an adequate number of latrines and other sanitary arrangements at the site and work areas, and ensure that they are cleaned and maintained in a hygienic state.

(iii) Solid waste. Garbage receptacles at construction site and camps, which will be periodically cleared to prevent outbreak of diseases, will be setup.

(iv) Personal protection. Provide personal protection equipment (PPE) appropriate to the job, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations, for workers.

(v) Emergency Preparedness and Response. An emergency response plan to take actions on accidents and emergencies, including environmental and public health emergencies associated with hazardous material spills and similar events will be prepared, and submitted to the PMU for review and appraisal. A fully equipped first- aid base in each construction camp will be organized.

(vi) Records Management. A Records Management System that will store and maintain easily retrievable records protected against loss or damage should be established. It will include documenting and reporting occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits.

(vii) Safety communication. Ensure that safety, rescue and industrial health matters are given a high degree of publicity to all persons regularly or occasionally on the Site. Posters drawing attention to site safety, rescue and industrial health regulations will be made or obtained from the appropriate sources and will be displayed prominently in relevant areas of the site.

(viii) Training, awareness and competence. Train all construction workers in basic sanitation and health care issues, general health and safety matters, and on the specific hazards of their work.

1. Road Subprojects - Health and Safety

313. Safety risks are mainly related to the construction phase. Residents, particularly children, are at risk during project construction. In linear construction activities such as road construction and pipe network construction which typically occur in areas frequented by the public, physical and educational measures to protect residents from risks are needed. Clear

81 signs will be placed at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc and raising awareness on safety issues. A traffic control and operation plan will be prepared by the subproject IAs and approved by the relevant county/district/city traffic bureau prior to any construction. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance. Residents and businesses will be informed in advance through media of the road improvement activities, given the dates and duration of expected disruption.

314. Additional safety measures for construction staff and public will include the following responsibilities of the contractor: (ii) Providing safe and convenient passages for the public; (iii) Providing construction workers sufficient personal protection equipment such as hard hats, earpiece, safety shoes, and others; (iv) Installing warning signs where potential dangers are present; and (v) Ensuring construction staff are on duty on or near heavy movement of construction vehicles, or heavy construction vehicle traffic through the villages to ensure safety.

315. Health risks are primarily related to increased transit population during construction (construction workers) and operation (visitors) in the regions. The increased mobile population could potentially bring and spread infectious diseases in the Project area. Workers could spread diseases such as hepatitis and HIV-AIDS to local residents as well as among themselves. Measures for protecting community health include: (i) Providing disease prevention and control training to construction workers, particular epidemic diseases such as HIV, H1N1 and hepatitis B prior to the start of construction. Leaflets, education seminars will be organized, in association with the local government and communities, to increase the awareness and knowledge of HIV/AIDS; (ii) Providing posters in and around the construction sites for disease control, for not only construction workers but also villagers and others in the areas; (iii) Providing adequate protective gear such as condoms to workers at the construction camps; (iv) Providing periodical health checks to construction workers to ensure their health and well being.

316. An improved road system can reduce the number of vehicular accidents. However, in that it allows traffic to travel more smoothly, it can also increase the risk of serious pedestrian accidents, especially to children, if behavior does not change in response to changed traffic conditions. It will be important to promote road safety for adults and children alike. This will be conducted as a campaign both in schools and in communities. In each of the counties, the issue of road design features that could enhance the safety of roads improved was also raised in consultative meetings involving local residents.

2. WWTP Subproject - Health and Safety

317. Construction site. Clear signs will be placed at construction site in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc and raising awareness on safety issues. Heavy machinery will not be used after day light and all such equipment will be returned to its overnight storage area/position before night. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate.

318. Wastewater treatment plant operators and staff may be injured by slips, trips and falls on wet floors; by falls into treatment ponds, pits, clarifiers or vats and by splashes of hazardous liquids; they may suffer cuts and pricks from sharp tools, contusions, etc. They are exposed to hazards related to work in confined spaces. Other common hazards include electric shock, explosions, and moving machinery.

82 319. The following measures will be implemented to safeguard the safety and health of WWTP operators: (i) the use of safety shoes or boots with non-slip soles; (ii) wearing of personal protective equipment and chemical resistant clothing to avoid exposure of skin or eyes to corrosive and/or polluted solids, liquids, gases or vapors; (iii) posting of safety instructions in each workshop regarding the storage, transport, handling or pouring of chemicals; (iv) check electrical equipment for safety before use; verify that all electric cables are properly insulated; take faulty or suspect electrical equipment to a qualified electricity technician for testing and repair; (v) wearing of safety goggles in all cases where the eyes may be exposed to dust, flying particles, or splashes of harmful liquids; (vi) wearing of respiratory mask in the sludge dewatering and de-odor workshops and when moving and transporting sludge; and (vii) adherence to all safety instructions concerning entry into confined spaces, e.g., check atmosphere for oxygen or for poisonous gases, use respiratory protection equipment if needed, have a co-worker stand guard in case of need for help, etc. Moreover, all workers will undergo periodic examinations by occupational physician to reveal early symptoms of possible chronic effects or allergies. Finally, health and safety will be incorporated into the regular staff training programs.

320. There is a community health concern related to the emission of foul odor and the discharge of effluent from the WWTP. The assessment has concluded that: (i) the ambient air and water quality surrounding the WWTP will meet the national standards at 100m and has proposed an additional buffer zone of 200m; and (ii) the measures to mitigate the accidental release of effluent, including the supply of spare parts and the use of a holding pond, are adequate. The community health concerns are therefore adequately addressed.

3. Heating Subproject - Health and Safety

321. The Fuxin Combined Heat and Power (CHP) Plant operates under existing environmental compliance and monitoring conditions which include: (i) regular inspections of the district heating network and repair of defects promptly; and (ii) compliance with the PRC State Administration of Worker Safety Laws and Regulations.

322. The pipelines and HESs will be operated and controlled by the Sixth Heating Company, one of the subsidiaries of the Fuxin Heating Company, but the PMO and the IA shall be responsible for reviewing the environmental monitoring and compliance reports of the associated facilities, and to provide suggestion for corrective actions if necessary. The review of the environmental monitoring and compliance reports will be reflected in the semi- annual environment progress report submitted to ADB.

323. Upon completion of the subproject, 15 small boilers will be decommissioned. Some small boilers may contain asbestos material so that caution and careful attention should be paid to avoid adverse impacts to public health. Initially, the construction date of the boilers should be confirmed, since asbestos was banned from use in boilers and the heating sector generally in the PRC in 199023. Even before this many local labor bureaus, EPBs and public health bureaus issued official documents to prohibit use of asbestos in boilers and other applications. However, the document of the World Bank group, ―Good Practice Note – Asbestos: Occupational and Community Health Issues states that thermal insulation containing asbestos was widely used through the 1970s and should be looked for in any project involving boilers and insulated pipes, and that insulation dating from before the 1980s

23 Even before this many local labor bureaus , EPBs and public health bureaus issued official documents to prohibit use of asbestos in boilers and other applications.

83 should be presumed to contained asbestos until proved otherwise. Measures to minimize health risks caused by asbestos during demolishing the small boilers include the followings:

(i) Asbestos Risk Assessment. Before demolition, a risk assessment will be conducted by a licensed professional unit for disposal of dangerous and hazardous waste, including asbestos. The assessment will identify presence, absence and amount of asbestos and asbestos-containing materials (ACM) in each of the 15 small boilers, and define an action plan for all small boilers, including labeling requirements, control mechanism (from elimination, removal or isolation to safe working practices), health and safety requirements, as well as a plan of action and procedures for disposal of the asbestos and ACM. The plan will be based on the World Bank EHS standards (April 2007) and the Good Practice Note ―Asbestos: Occupational and Community Health Issues (May 2009)‖. The risk assessment will be shared with the local EPB, PMO and ADB, and will be a project assurance;

(ii) Removal, transport and disposal. In case of presence of ACM, the licensed professional unit for disposal of dangerous and hazardous waste shall identify, properly label and pack asbestos as well as demolishing debris contaminated with asbestos during the deconstruction. Asbestos and ACM must be transported in sealed vehicles to approved hazardous waste landfill. Licensed demolishing contractor(s) must be selected through competitive bidding;

(iii) Supervision. The Fuxin EPB will supervise and monitor the deconstruction and transport process, with the support of the Loan Implementation Environmental Consultant (LIEC) if requested. The EPB will undertake a visual inspection to confirm that all identified ACM have been removed, and a clearance monitoring of airborne asbestos to confirm safe working environment. The applicable domestic and international law and regulation for the demolishing and disposal of asbestos and ACM are listed in Chapter II. The inspection and monitoring program for the asbestos and ACM has been included in the monitoring program of the EMP.

(iv) Training. Training on handling and managing asbestos and ACM will be provided to the EPB and deconstruction contractors. The training has been included in the training plan of the EMP, and budgeted accordingly.

H. Indirect, Induced and Cumulative Impacts

1. Indirect and Induced Impacts – Road Subprojects

324. The construction of a new road where none previously existed, or the upgrading of an existing road to a different class of usage has the potential to influence traffic volumes and consequent developments on adjacent roads. However, all road components in the subprojects have been examined in the context of the appropriate county and district Development and Transport Master Plans in the FSRs.

325. All components will address the weak links of the existing road network. With their completion, the scope of the road network will be expanded, and the traffic function and level of service provided for the adjacent areas will be improved and enhanced. Their individual contributions to, and influence on the district and neighborhood traffic flows, have therefore been assessed within the context of the relevant plan.

2. Indirect and Induced Impacts – Waste Water Treatment Subproject

84 326. Induced impacts from the siting and design of wastewater treatment facility focus primarily on the arrangements for the disposal of treated effluent and the closure of existing wastewater treatment facilities.

327. Effluent discharge. Discharge from the plant will be to receiving waters of very low water quality (Class V24 or worse) due partly to the existence of inadequate wastewater treatment facilities upstream of the site and untreated sewage draining to the waterbodies from town areas not connected to the existing plants. Rated discharge qualities from the proposed WWTP of Class 1A standard (from tertiary treatment) and the closure and rehabilitation of the old existing facility will result in a cleanup of the for the receiving waters and higher quality downstream (see operational phase impact below).

328. Downstream beneficial uses: The Chang River is the receiving water body of the discharge from the proposed Qingshuitai WWTP. It originates in Magang Village of eastern Shenbei, 5 km upstream from Qingshuitai, and flows into the Liao River. At Qingshuitai the river is 3-4m wide, with a flow rate of 0.24 m3/s during the mean-water season. The Chang river flows to the Liao River after travelling a further 40km downstream from Qingshuihai and through the northern urban area of Shenbei City. For 30km of this reach, the river is canalized. The Subproject PMO and local EPB advised that there are no domestic or irrigation uses of the river downstream of Qingshuitai. Site inspections noted the existence of dedicated irrigation channels in the region for agricultural use which were kept separate (through canalization) from the Chang River.

329. Closure of Current Facility. Closure and rehabilitation plans of the small existing WWTP facility in Qingshuitai (Shenbei New Area) will be developed at the time of commissioning of the new plant and implemented after an initial trial period of operations of the new facilities. It is planned that after a successful trial period of 6 months operation of the new plant, closure and rehabilitation of the existing plant will commence. Such an overlap of operations is considered prudent to ensure that there is some measure of continuous wastewater service. The rehabilitation of the site will be completed within three years. These facilities comprise a primary settlement tank and an artificial, constructed wetland for polishing water quality for release through seepage to the adjacent Chang River.

3. Indirect and Induced Impacts – Heating Expansion Subproject

330. The main indirect impacts from the heating expansion subproject at Fuxin will be the replacement of individual heating stoves and small boilers in the area newly serviced by the expansion project, and subsequent savings of air emissions. Since the heating will be accomplished by using spare heating capacity at the combined heat and power plant, these are net savings of both greenhouse gas and combustion pollutants (see Table IV.21 below).

Table IV.21: Air Pollution Savings The Coal saved by replacing individual heating stoves and 21,536 t/annum small local boilers (standard coal) The Dust/Smoke emission (PM) saved by the replacement of 5,543 t/annum individual heating stoves and small local boilers The SO emission reduced saved by the replacement of 2 302 t/annum individual heating stoves and small local boilers

24 China‘s surface water quality standards divide water bodies into 5 classes: Class I being the best and Class V being the worst in terms of water quality standards. Water bodies that are Class III or better could be used for drinking water supply (after treatment).

85 The CO emission reduced saved by the replacement of 2 53,690 t/annum individual heating stoves and small local boilers

331. Although there are significant CO2 savings derived from using heat from the CHP rather than small local boilers and domestic stoves, the proportional GHG emitted from the CHP in providing that heat to service the subproject will be subject to the ADB Safeguards provisions covering aggregate CO2 emissions in excess of 100,000 t/a (see Chapter V).

4. Cumulative Impacts

332. Cumulative effects are defined as the impacts on the environment that result from the incremental impact of an action when added to other past, present, and reasonably foreseeable future actions, regardless of the agency (central or non-central) or person undertaking such other actions.

333. The active construction of multiple roadworks and, in the case of Qingshuitai and Xinlongtai townships in Shenbei, a WWTP will cause a magnification of environmental and social impact in the project areas in terms of traffic on the existing road network, civil works, air-borne dust, waste generation and community disturbance. The laying of heating pipes and construction of heat exchange stations in Sihe will occur during extensive demolition of existing flatted area and construction of 3 million m2 of apartment accommodation as part of the development of this quarter of Fuxin City. The subproject construction works will be a minor part of this development and will benefit from the concurrent earthworks for new city roads and services, sharing trenches and construction equipment, without adding significantly to construction impacts.

334. Construction related cumulative impacts will be effectively minimized by adopting proper mitigation measures, including: (i) coordination between all project sub-components and other projects in the area of influence in terms of construction schedule, possible access road and borrow/disposal sites sharing; (ii) contractors will develop material transport plan with consultation of local road management authority and local community; (iii) enforcement of good construction management to minimize dust, noise and waste generation; (iv) education of construction workers to minimize social disturbance and cultural conflict; (vi) provision of temporary access to local traffic; (vii) proper maintenance of the access roads and timely restoration/strengthening upon completion. With effective implementation of good construction management measures, these common construction-related cumulative impacts can be adequately mitigated to acceptable level.

335. In summary, the cumulative impacts are identified to be not significant with proper project design and effective implementation of necessary mitigation measures.

86 V. ENVIRONMENTAL CONSIDERATION OF ASSOCIATED AND PERIPHERAL FACILITIES

336. Developmental activities which will occur as a consequence of the implementation of subprojects, or as complements to them, are theoretically ―associated and peripheral facilities‖ and their consideration requires that there is an assurance that all developments are subject to a comparable level of environmental impact assessment and approvals procedures under PRC law. The following are classified as facilities associated to this project, requiring due diligence or environmental audit: (i) the operational performance of the existing Fuxin CHP, (ii) the decommissioning of existing domestic stoves and small local boilers, (iii) Shenyang Sludge Treatment Plant; (iv) the decommissioning of an existing inadequate WWTP; and (v) treatment for sewer systems constructed in conjunction with road construction.25

A. Operational Environmental Performance of the CHP

337. The subproject will obtain hot water from the existing Fuxin combined heat and power (CHP) plant. At the Fuxin plant, the total heating capacity of its two 220 MW power generation units can cover 5-6 million m2 of heating area. Currently, it currently covers 2.7 million m2 and still has remaining capacity of 3.3 million m2 of heating area. Thus, it can meet the heat demand of the subproject. So there is no need for the subproject to construct a heat source – nor is there a need to burn more fuel to provide heat for the subproject. The steam- water heating exchanging station was constructed in the CHP and it produces 120 °C /70°C hot water for the new Sihe district heating system.

338. The recent upgrade of the facility, which included the provision of the spare heating capacity, was subject to a full EIA report under PRC legislation and was approved by the Fuxin City Environment Protection Bureau. The approval conditions included compliance with operational noise (GB12348-90) and air emissions (GB13223-1996) standards and the revised directive by SEPA No.942. The plant has been operating in full compliance with these standards. The full conditional approval is at Appendix 3. The EPB has advised that the plant has operated in compliance with these conditions.

339. A check of the environmental performance of the plant was conducted during the project preparatory technical assistance. Pollutant emissions from the existing CHP plant during the period of 2008-2010 were in compliance with the Class II Air Pollutant Discharge Standards for Boilers (GB 13271-2001) and the World Bank EHS recommended limits for 3 3 Small Combustion Facilities Emissions (of 50-150 mg/m for PM; 2,000 mg/m for SO2) according to the local environmental monitoring reports provided by the implementing agencies. The data of the associated CHP plant is summarized in Table V.1.

25 The existing Fuxin CHP and the Shenyang Sludge Treatment Plant have been treated as associated and peripheral facilities given their significance to the project, however neither facility meets the associated facility definition as their viability and existence do not depend exclusively on the project (ADB. 2009. Safeguards Policy Statement. Manila. Appendix 1, para. 6.)

87 Table V.1: Technical Data for the Associated Fuxin CHP Heat source Fuxin CHP plant Location South edge of Fuxin urban area One 200MW power generation unit in service since 1996, one 200MW power generation unit in service Operation Since since 2002, two 350 MW power generation units in service since 2007. Owner of CHP China Power Investment Corporation Capacity (t/h) 3670 t/h Boiler Type Pulverized coal fired boiler Number of Boilers 4 Generating capacity (million KWh) 53.921 million kWh Designed heat supply (million GJ/a) 12 million GJ/a Current heating area (million m2) 6.33 million m2 New added heating area (million m2) 3 million m2 Standard coal consumption for heating (kg/GJ) 36.9 kg/GJ Coal calorific value (MJ/kg) 20.9 MJ/kg Sulfur content (%) 0.2% Nitrogen content (%) 0.36% Ash content (%) 21.13% Dust removal device ESP Dust removal efficiency 99.6% Desulfurization method Lime-stone gypsum wet process Desulfurization efficiency 90% De-nitrification method No de-nitrification installed. Coal content <1.11% N Flue dust emission concentration (mg/Nm3) 91 mg/Nm3（Limit of Code: 200 mg/Nm3）

3 3 3 SO2 emission concentration (mg/Nm ) 380 mg/Nm （Limit of Code: 1200 mg/Nm ） NOx emission concentration (mg/Nm3) 390 mg/Nm3（Limit of Code: 1100 mg/Nm3） Standard compliance in the period of 2008-2010 100% Source: Project preparatory technical assistance.

340. GHG Accounting. ADB‘s Safeguards Policy requires that for projects expected to produce significant quantities of GHG emissions (100,000 tons CO2e or more per year), the borrower must quantify direct emissions from the facilities. In this case the emissions come from the CHP – a facility associated to the project, but essential to the heating subproject. The production of the 150MW of heat at the CHP required to service the Sihe heating network will use 71,380 t/a of raw coal (50,904 t/a of standard coal) and produce 126,904 tCO2/a. Since this is greater than the threshold of 100,000 t/a, it requires that the IA undertakes an annual quantification of GHG emissions in accordance with internationally

88 recognized methodologies26. This should be undertaken by the CHP operators under the supervision of the Fuxin Subproject PMO. The quantification should be funded by the subproject IA, and the Fuxin Subproject PMO will submit reports to the Provincial PMO to be included in its six-monthly reports to ADB. This requirement is reflected in the EMP and Project assurances.

341. The GHG emissions to produce the heat to service the heating subproject are offset by the replacement and decommissioning of household stoves and 15 small local boilers. The combination of small local boilers and domestic heating stoves currently consume 72,420 t/a of standard coal, releasing 180,594 tCO2/a to provide the same amount of heat. The much higher efficiency CHP produces the same amount of heat using 50,904 t/a of standard coal and emits only 126,904 tCO2/a. There is therefore a net savings in GHG emissions of 53,690 tCO2/a as a result of the subproject. Since the district heating subproject only uses a portion of the CHP‘s heat output, and that the GHG emissions from this is totally offset by the fuel savings described above (to the point that there is a net reduction of GHG), monitoring need only be undertaken for three successive years. If the amount of GHG emissions remains constant or decreases monitoring may be discontinued.

B. Demolition of Small Boilers

342. The decommissioning of small boilers and domestic stoves will take place within the context of an existing urban renewal program in Sihe, where flatted areas are being replaced with apartments (which can take advantage of the centralized heating infrastructure). The Resettlement Plan has undertaken due diligence on the areas subject to Urban Renewal Program (dating from 2005) to ensure compensation and conditions for this program were appropriate and complied with PRC standards.

343. Upon completion of the subproject, 15 small boilers are likely to be decommissioned. It is expected that a large number of domestic stoves will be replaced by the expanded district heating system. Demolition of the existing small boilers and the single-family heating stoves will generate large quantities of solid wastes and debris including ferrous waste, waste concrete, bricks, glass, rubble, and roofing materials, etc. Inappropriate disposal and storage of deconstruction waste could impact soil, groundwater and surface water resources, and consequently public health.

344. The demolition of old small boiler houses will have potential for short term impacts of noise and dust as well as the handling and disposal of demolition waste. This will need to be undertaken in compliance with the Law on the Prevention and Control of Environmental Pollution by Solid Waste of PRC (2004) and scrap material and demolition waste disposal standards promulgated by the Ministry of Housing and Urban-Rural Development. There is also a small but not negligible risk that small local boiler houses being demolished will contain hazardous substances such as asbestos. In these cases, special provisions for environmental health and safety of workers and the community will be strictly enforced (see Chapter IV; section G3). Work will need to be undertaken under the supervision of the local bureau for Work Safety and in compliance with the provisions of the PRC Occupational Disease Control Act (2002) and Work Safety Act (2002). Additionally, ash residues at the small boilers could potentially contain significant levels of heavy metals or other potentially

26 The most authoritative methodologies can be found in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

89 hazardous materials. These should be laboratory tested to verify their classification as hazardous or non-hazardous according to local regulations or internationally recognized standards. The FSRs did not cover this issue and demolition plans with environmental safeguards will be required as loan assurances.

C. Closure of Existing WWTP

345. The existing WWTP at Qingshuitai will continue to operate up until the commissioning of the new WWTP and for an initial operating period of 6 months. Such an overlap of operations is considered prudent to ensure that there is some measure of continuous wastewater service. The rehabilitation of these sites will be completed within three years.

346. Closure and rehabilitation of the facilities will involve the pump out of the existing settlement tank and discharge as influent into the new plant for treatment. Sludge remaining in the tank will be dried and added to sludge produced in the new plant for disposal/utilization. Since the existing plant consist of a cement primary settlement tank and cement constructed wetland/polishing tank, no general site decontamination or pollution cleanup is likely to be required. However, ground contamination around the area between the constructed wetland and the Chang River should be tested and contaminated soil removed for sanitary landfill. Similarly, the gravel beds and sand/soil/mud substrates within the constructed wetland will need to be removed and disposed of in a sanitary landfill. The plan will be based upon site investigations and volumes of all materials. The rate of disposal of sludge will be based on the daily operating capacity of the new plant. Handling, loading and transport of these contaminated materials will need to be undertaken observing strict occupational health and safety practices. The existing sewerage pipe network will be taken over by the new system to conduct wastewater to the new WWTP. Only the final influent pipes to the existing WWTP will be unused. During the pre-construction phase options for these pipes will be assessed (leave in situ or exhume and dispose of) as part of the closure plans and be subject to the same time horizons and standards of that plan. A the time-bound closure and comprehensive site rehabilitation plan, will be a project assurance through loan covenants.

D. Treatment and Utilization of Sludge

347. The dewatered sludge produced by the subproject WWTP will be transported to the Shenyang Sludge Treatment Plant, which is currently being constructed, for desiccation and composting. Final utilization will be as compost for municipal landscaping areas and distribution for agricultural use. The construction of SSTP is scheduled for completion by the end of 2013, allowing commissioning and a 12 month operational running-in period before accepting sludge from the Qingshuitai WWTP. The owner and operator of the SSTP is the Shenyang Water Affair Group Corporation. Its design sludge treatment capacity is 200,000 t/d. The QA/QC mechanisms and compliance process will be in place before the commencement of operations. The plant has passed PRC approvals including EPB approval for construction. The haulage distance between the wastewater treatment plants and the Shenyang City sludge treatment plant is 10 km. The sludge to be transported is still in slurry form (sludge will be dewatered to just below 80%), un-stabilized, odorous, with pathogens. A transport plan that, at a minimum, identifies the route, time of day, frequency of hauling, type of truck to use, truck speed, will be developed and implemented to cover this transport. Also to be prepared is an emergency preparedness and response plan in case of slurry spillage along the way. The approval of Shenyang EPB and of other concerned government agencies (e.g., city health office) as required, will be sought.

348. Shenbei District has committed to the beneficial utilization of sludge from the new

90 plant. A letter from the Shenbei District government, bearing its stamp, committing to the conversion of treated sludge from the plants to agricultural/horticultural compost is at Appendix 4.

E. Treatment of Sewage and Stormwater Carried in Pipes Constructed with Roads

349. The purpose of the sewer and stormwater pipe laying in conjunction with road- making is to contribute to the separation of sewer and stormwater flows. Currently in the subproject areas, sewage and stormwater are carried together in sewer pipes. This leads to overload at the local WWTPs during times of high rainfall and consequent overflow – discharge of combined stormwater and untreated sewage into rivers and streams.

350. The separation of stormwater through the piping laid as part of the subprojects will conduct stormwater to drainage channels and rivers. PRC regulations do not require treatment of stormwater before discharge and, since it will be uncontaminated by sewage, no treatment of stormwater before discharge is proposed. Environmental protection measures for stormwater will include trash racks to catch garbage and objects and prevent them entering waterbodies and water velocity dampening structures at outlets to waterbodies, which lack reinforced or canalized banks and beds, to prevent scouring and erosion.

351. The sewer pipes all connect to existing municipal WWTPs, except in the case of the Shenbei subproject at Qingshuitai where they will connect to the new WWTP being constructed as part of the Project. The operation of the WWTPs and capacity to accept the sewage volumes were advised by the IAs and design institutes and confirmed in site visits by the PPTA team. The sewerage systems, capacities, operators and service areas are summarized in Table V.2 below.

Table V.2: Sewerage Systems Connected to the Roads Subprojects Exiting Implementing WWTP Sewage District / County WWTP Performance Agency Capacity Sources (m3/d) The sewer pipes will be connected Domestic & to Xinmin Municipal WWTP. Xinmin Xinmin industrial for Advised by local IA and DI and Municipal Infrastructure 50,000 centre area of confirmed by TA consultant site Management Subproject Xinmin city inspections, that the WWTP Department urban area operates in compliance with PRC regulations. Proposed Domestic for WWTP central area The sewer pipes will be connected Shenbei New Shenbei New capacity of of Xinglongtai to a new Xinglongtai Town WWTP. District Central District 6,000 m3/d Town Towns Integrated Municipal Development Management Proposed Domestic for Subproject Department The sewer pipes will be connected WWTP centre area of to the new Qingshuitai Town capacity of Qingshuitai 3 WWTP. 10,000 m /d Town The sewer pipes will be connected Heishan Domestic for to the Heishan Town WWTP. Heishan County centre area of Advised by local IA and DI and Infrastructure Municipal 240,000 Heishan confirmed by TA consultant site Subproject Management Town inspections, that the WWTP Department operates in compliance with PRC

91 Exiting Implementing WWTP Sewage District / County WWTP Performance Agency Capacity Sources (m3/d) regulations. Domestic for The sewer pipes will be connected Gaizhou City center area of to Gaizhou City WWTP. Advised by Gaizhou Municipal Not Beichen road, local IA and DI and confirmed by Infrastructure Management available Majiagou and TA consultant site inspections, that Subproject Department Honghuayu the WWTP operates in compliance Township with PRC regulations. The sewer pipes will be connected Huanren Domestic for to Huanren Municipal WWTP. Huanren County center area of Advised by local IA and DI and Integrated Municipal 6,500 Huanren confirmed by TA consultant site Development Management County urban inspections, that the WWTP Subproject Department area operates in compliance with PRC regulations. Domestic for Waitoushan The sewer pipes will be connected Waitoushan Liaoning Town, to Waitoushan Town WWTP. Mining/Residential Yaodu including Advised by local IA and DI and Areas and Investment mining 270,000 confirmed by TA consultant site Songbei Street (Group) residential inspections, that the WWTP Road Upgrading Limited area and operates in compliance with PRC Subproject Company Songbei regulations. street area Village

92 VI. CONSIDERATION OF ALTERNATIVES

352. During Project preparation, various alternatives for the project components were proposed, screened, and studied against technical, economic, social, energy efficiency and environmental criteria. The primary objective with respect to environmental criteria was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits. The following key environmental factors were used in comparing the alternatives: (i) potential impacts on surface and groundwater; (ii) land occupation; (iii) emission reduction; (iv) minimization of community disturbance; (v) resettlement and economic displacement; and (vi) adaptation to local context (climatic constraints, required skills, etc.). The range of alternatives considered depended on the infrastructure sector and its characteristics.

A. Without-Project Alternatives

353. All analyses considered the ‗do-nothing‘ alternative, the consequences of which are a continuation of the current situation for roads, wastewater treatment, and district heating.

354. Urban infrastructure components - road and bridge constructions. Currently, many urban road networks in the project townships and cities lack connectivity, cross sections are often inadequate, and the mix of pedestrians, non-motorized traffic and motorized traffic is uncontrolled and dangerous. The standards of some existing road structures and roadbase treatments are low and many road surfaces have seriously deteriorated. The networks often cannot adequately function in terms of traffic distribution and separation of arterial and secondary roads. The without-project scenario would result in continued deterioration of the area, weakening the city´s competitiveness and its attractiveness to outside investors and tourists, impeding development and economic growth, as well as slowing down the improvement of living standards for residents.

355. Wastewater treatment components. At present, wastewater treatment facilities in Qingshuitai cannot cope with the volume of wastewater produced by the urban population. This population is increasing, with large building projects currently being undertaken to re- house many residents of the shanty towns. Therefore, in addition to the inadequately treated effluent being discharged into receiving waters by the existing WWTP, a greater volume of untreated sewage enters the water bodies, bypassing the existing facilities, and cause serious water pollution.

356. District heating component. Without the district heating component, the residents in Sihe Town of Fuxin City would still have rely on the 15 inefficient and high polluting small boilers without any flue gas cleaning equipment and 6,471 individual family coal-fire stoves, which cause indoor and outdoor air pollution, and contribute to respiratory disease from inhaling coal dust and smoke. Without the component, Sihe Town´s environmental conditions would deteriorate further. The operation of the heating component will bring heating to the residents of a new urban area totaling 3,300 m2 without requiring the combustion of additional coal equivalents and replacing existing domestic heating stoves. The component will therefore significantly reduce overall coal consumption, and improve the Town‘s air quality by using an environmentally friendly PC boiler with advanced combustion and emission control equipment that consumes less coal, and by decommissioning small boilers and family stoves.

93 B. Alternatives Analysis Common to all Counties/Towns

1. Consideration of Alternatives

357. The range of alternatives considered depended on the infrastructure sector and its characteristics. Many of the FSRs‘ alternatives analyses were concerned with technical and engineering specifications. These include: surface materials, base course materials and cross section designs for roads and pipe laying techniques, pipe materials and pipe sizes for WWTP and heating. The discussion below will focus on those parts of the analysis of alternatives with potential for differential environmental effects. These categories of alternatives are summarized in Table VI.1 below.

Table VI.1: Major Alternatives with Differential Environmental Effects Alternative Considered Selection WWTP Component Treatment process (baffled-submerged biofilm 2 Baffled-submerged biofilm process selected process and A O) Sludge disposal (to landfill, composting) Composting selected Road Component Appropriate cross section with pedestrian Alternative road cross sections features and other facilities selected Road Pavement (asphalt, cement and noise- Asphalt selected reducing) Pipe Material (HDPE double wall corrugated pipe, Appropriate pipe material was selected for fiberglass reinforced plastic pipe and reinforced stormwater/wastewater pipe concrete pipe) District Heating Component Heating source (existing CHP and installation of new Existing CHP selected large size boilers)

2. Roads

358. Of the alternatives with potential environmental effects, the do-nothing alternative, road pavement and cross-section alternatives have been considered in the FSRs. The do- nothing alternative has already been discussed in the Project Justification and Rationale (Chapter C) where the current situation is described. The poor environmental performance of existing infrastructure (such as low wastewater collection rate), the poor quality of existing road surface and the lack of connectivity are the main justifications for change.

359. Road Pavement. Three types of pavement materials for carriageways, i.e. asphalt pavement, cement pavement and noise-reducing pavement, were considered in the aspect of construction cost, maintenance, quality of road surface and environmental pollution. The detailed comparison is shown in the following table. The asphalt pavement was selected due to low construction cost, good resistance to wear, skidproof and waterproof and less environmental pollution.

Table VI.2: Comparison of Pavement Material Alternatives Analysis Noise-reducing Asphalt Pavement Cement Pavement Criteria Pavement Compared with the The maintenance The maintenance asphalt pavement, the frequency is high, frequency is low under maintenance frequency is Impact on the which is subject to normal operation, which lower, which possibility of environment causing the secondary possibility of resulting in the resulting in the secondary environmental secondary environmental environmental pollution is pollution. pollution is lower. lower.

94 Analysis Noise-reducing Asphalt Pavement Cement Pavement Criteria Pavement The wastewater will be The asphalt fume will produced during the The asphalt fume will be be generated during pavement curing. The generated during the Impact during the pavement which construction is relatively pavement which has the construction has the adverse difficult with longer period, adverse environmental environmental impact. which has the negative impact. impact on local residents. Owing to the addition of The noise level is low sound absorption material, Efficiency of The noise level is relatively due to good its noise level is 2-3 dB noise-reducing high. planarization. lower than that of asphalt pavement. Compression strength and Good Poor Good flexural strength In case of high temperature, the Adaptability of asphalt pavement is High thermal resistance Medium temperature subject to melting- down, resulting in the broken of road surface. Plastic Poor and subject to Medium Good flexibility deformation generating cracks The pavement is subject to generating cracks and It has half thickness of Quality of road desiccation fissures, as well Medium asphalt pavement with surface as serious pavement wear, doubled serve life. causing the generation of small holes. Performance of In winter, the pavement is skidproof and Good Poor subject to icing. waterproof The construction cost Due to the addition of The construction cost is is low, while the specific sound absorption Cost high, but the maintenance maintenance cost is material, the cost is the cost is low. high. highest. Source: FSRs for subprojects, 2011

360. Road Alignment. The alignments of urban roads are based on rehabilitating or connecting existing roads and local topographic condition, and conform to the cities‘ master plans and 12th FYPs. No alternative alignments were considered.

361. Road Cross Section. There are four types of cross sections, which characteristics and application are shown in the following table. Based on city‘s master plan, characteristics of traffic flow and the road function, the appropriate type of cross section was selected for each road.

Table VI.3: Comparison of Cross Section Alternatives Cross Characteristics Application Section (i) There is no specific lane for non-motorized traffic which Secondary or branch uses partial lane or sidewalk; road with low One-section (ii) There is no separation for the lanes going the opposite motorized and non- direction which causes the interference and low traffic motorized traffic flow speed.

95 Cross Characteristics Application Section (i) There is no specific lane for non-motorized traffic which Secondary or main uses partial lane or sidewalk; road or highway with Two-section (ii) The lanes going in the opposite direction are separated heavy motorized traffic without the interference, and the traffic speed of the inside flow and low non- lane is relatively high. motorized traffic flow (i) There is the specific lane for non-motorized traffic which avoids the interference among the motorized and non- Main road with motorized traffic flow and pedestrian, and the safety of non- continuous heavy non- motorized traffic is guaranteed; however, there are many motorized traffic flow; Three- problems for the crossing; or main road with rapid section (ii) There is no separation for the lanes going the opposite growth of pedestrian direction; however, the speed of motorized traffic is relatively and non-motorized high for avoiding the interference between motorized and traffic flow non-motorized traffic. (i) There is the specific lane for non-motorized traffic which avoids the interference among the motorized and non- motorized traffic flow and pedestrian, and the safety of non- Main road or highway Four- motorized traffic is guaranteed; however, there are many with heavy motorized section problems for the crossing; and non-motorized (ii) The lanes going the opposite direction are separated traffic flow without the interference, and the traffic speed is relatively high. Source: FSR for Heishan Subproject, 2011

3. Storm Water

362. Pipe Material. Three types of pipe materials were compared in the FSRs (see Table V.4), including HDPE double-wall corrugated pipe, fiberglass reinforced plastic pipe and reinforced concrete pipe. The reinforced concrete pipe was adopted for the stormwater pipe works due to lower cost. For the sewage pipe works, the HDPE double wall corrugated pipe was selected because of easy construction, less scale formation, better corrosion resistance, high rigidity and flexibility, and high resistance to shock and pressure.

Table VI.4: Comparison of Pipe Material Alternatives HDPE Double Wall Fiberglass Reinforced Reinforced Concrete Item Corrugated Pipe Plastic Pipe Pipe Unit Price High Medium Low 5% of reinforced 10% of reinforced Weight Very heavy concrete pipe concrete pipe Length of Unit ＞6 m 6 m and 12 m 3～5 m Pipe Roughness 0.009 0.009 0.013 Coefficient Corrosion Good Good Medium Resistance The hot melt is used for The joint is subject to The doubled rubber ring pipe connection, which damage. Due to the fact is used for pipe Quality of Pipe quality is good and is that the unit pipe is short, connection with good Works and not subject to damage. the impermeability is poor. impermeability, which is Maintenance The quality of whole The quality of whole not subject to damage. Cost works is guaranteed. works cannot be The maintenance cost is The maintenance cost is guaranteed. Maintenance relatively low. relatively low. cost relatively high. Environmental Good for groundwater Good for groundwater Medium Impact due to less seepage due to less seepage Service Life 60 years 50 years 60 years Source: FSR for Xinmin Subproject, 2011

96

4. Wastewater Treatment

363. Treatment Process. The FSR compared two treatment processes, i.e. baffled- submerged biofilm and improved A2O (Anaeroxic – Anoxic – Oxic) process.

364. The improved A²O accomplishes dephosphorization and denitrification through anaerobic, anoxic and aerobic biotic environment. The process combines the three biochemical processes of dephosphorization, denitrification and degradation of organics.

365. Baffled-submerged bio-film process (DSTE) is a new process based on the anaerobic reactor. The process uses the method of ―anoxic-anaerobic-aerobic‖, and uses baffled partitions to achieve series connection of each pool. The excess sludge is designed to be discharged to the sludge reserve tank, and then pumped to the integrative sludge thickening and dewatering stage and after thickening and dewatering transferred off-site for disposal/utilization.

366. The baffled-submerged biofilm was selected for the WWTP in Qingshuitai after the technical and economic comparisons. The comparisons of wastewater treatment alternatives are shown in Table VI.5.

Table VI.5: Comparison of Wastewater Treatment Alternatives A2O (anoxic-anaerobic- Item Baffled-submerged Biofilm aerobic) Construction cost 38.1 38.46 (million CNY) Operation cost 0.53 0.48 (CNY/ton wastewater) (i) Less structures are needed for the treatment process; (i) The water head is fully used (ii) The operation is simple with lower in WWTP; cost; Advantages (ii) The water quality of effluent (iii) The process is simple; is stable. (iv) It is tolerant of shock loads; (v) Less sludge is produced; (vi) Less aeration rate is needed. (i) More structures are needed for the treatment process; (i) The area of biochemical tank is Disadvantages (ii) The operation and large with higher cost. maintenance is relatively complicated. Source: FSR for Shenbei Subproject, 2011

367. Sludge treatment process. The FSR compared two treatment processes. (i) sludge dewatered and further dried and compacted to a water content of 60%, then transported to local landfills, (ii) sludge dewatered to a water content of 80%, then transported to the Shenyang Sludge Treatment Plant (SSTP) for composting. The stability of the first process is uncertain, and is a waste of a resource and a continuation of environmentally unsound landfilling. The second sludge treatment process was selected because it enables beneficial reuse of sludge.

5. District Heating

368. Heat Source. Currently, there are three types of heat source normally used for urban central heating in the PRC: CHP, large-scale boilers and renewable energy options. The main renewable energy in this area is solar power. However, its use as an urban heating supply source, even for a small area, requires a very large capital investment and

97 large tracts of land. Another renewable energy source is biomass fuel such as straw substituting for coal. However, the Biomass Power Plant in Haishan County, currently exploits the entire local biomass resource.

369. With no viable renewable source able to provide the heat energy for Sihe Town, the two options compared in the FSR were (i) CHP and (ii) large-scale fossil fuel boilers. In practice currently, CHP is often used for large-scale district heating, supplying both power and heating in winter. Large-scale boilers are used mainly for areas that cannot be serviced by CHP.

370. CHP is defined as the simultaneous production of electrical power and heat in a single process. It is based on the principle that, in a plant dedicated to electricity production alone, only a portion of the primary fuel energy is actually converted into electrical power, ranging typically around 33%. The remaining part is lost in the form of heat dissipated to the environment. Cogeneration allows increasing the conversion efficiency of the primary fuel energy by means of heat recovery for heating. In other terms, CHP grants significant energy saving in comparison with separate production of electricity (in a traditional power station) and heat (in a traditional district heating boiler house). Because the CHP makes extensive use of the heat produced during electricity generation, it can achieve overall maximum efficiencies of 87%. Option 1 will utilize the existing Fuxin Power Plant as the heat source. Based on the relevant evaluation, the heating capability of the power plant satisfies the heat supply load required by the project. In addition, the main pipe has been laid near Sihe Town by Fuxin Heating Supply Company.

371. Large size heat-only coal-fired boilers have been widely used in the northern PRC and it is a preferred heating source next to the CHP, of which the disadvantages, in comparison with the CHP are (i) lower efficiency, (ii) higher emissions, and (iii) more urban land acquisition. The advantages include (i) shorter transmission pipelines, and (ii) shorter construction period. Option 2 is to build new hot water boilers of 3×58 MW at the branch office of FHSC near Sihe as the heat source.

372. The high efficiency achieved by using the CHP has significant environmental benefits - specifically for GHG emission reduction. In addition, due to efficient pollutant control equipment to be used in the CHP plant, the emissions of dust, NOx and SO2 from the CHP plant are much less than from existing coal-fed boilers. The CHP plant will also reduce land use, capital investment and operation cost of the district heating system, which will minimize social and financial risks. As a result, the CHP was selected for the component.

373. Pipe-laying. Three pipe-laying methods were considered in the FSRs: above ground, buried in a utility tunnel, and buried directly underground. The above-ground method was eliminated because it would have taken up more land and would have had an adverse visual impact. Compared to insulation properties of a standard pipe buried in a trench, the method of directly burying and laying the pipes has more advantages, such as: (i) over 30% lower construction cost; (ii) saving energy and reducing approximately 15 – 20% of heat loss compared with above ground method; (iii) good anticorrosive and insulation performance; iv) long service life; (v) less land occupation during construction; and (vi) faster construction. Thus, the direct burying method was selected as a result.

C. Alternatives Particular to Individual Subproject

1. Xinmin Subproject

374. Bridge. The subproject will construct three bridges i.e. Zhanqian Street Xinkai River Bridge, Gongren Street Xinkai River Bridge and Gongren Street Gongtie Overpass Bridge.

98 Two structures were compared in the FSR for the Zhanqian Street Xinkai River Bridge and Gongren Street Xinkai River Bridge, i.e. simple supported plate-girder bridge of prestressed concrete (Option 1) and continuous beam bridge of prestressed concrete (Option 2). The following table shows the detailed comparison. Due to easy construction, less land occupation and low cost, Option 1 was selected for the two bridges to be built.

Table VI.6: Comparison of Bridge Structure (Xinmin Subproject) Option 1 Option 2 Analysis Criteria (simple supported plate-girder (continuous beam bridge of bridge of prestressed concrete) prestressed concrete) Technical Easy construction with reliable More difficult construction with reliable Difficulty and design and construction technique design and construction technique feasibility The bridge foundation and pier pertains The bridge foundation and pier to the conventional construction; the Construction pertains to the conventional girder body is made to use support frame Difficulty construction; the cored slab is pre- casting in situ, which construction is manufactured, which is easier. more difficult. Since the full framing construction Due to easy construction, less Construction technology of cast-in-place is used, there equipment is required with shorter Period are more processes with longer construction period. construction period. The bridge deck is simple and The driving conditional is good due to Ride Comfort continuous, which driving integral bridge deck. condition is medium. Maintenance Easy maintenance with low cost Easy maintenance with low cost Complexity Landscape Simple style with medium Beautiful style with nice landscape Coordination and landscape coordination coordination and aesthetic effect Aesthetic Effect Cost Lower Higher Source: FSR for Xinmin Subproject, 2011

375. For the third bridge there are two structures to select, i.e. with three apertures (Option 1) and with two apertures (Option 2). Due to detached pedestrian, non-motorized traffic and motorized traffic, Option 1 was selected for the Gongren Street Gongtie Overpass Bridge.

2. Shenbei Subproject

376. Qingshuitai Town - Bridge. For the structure of No.3 Road Bridge in Qingshuitai Town, two options were considered, i.e. simple supported plate-girder bridge of prestressed concrete (Option 1) and single span slab arch bridge (Option 2), which are shown in the table below. Option 1 was selected for economic and pragmatic reasons as the result.

Table VI.7: Comparison of Bridge Structure (Shenbei Subproject) Option 1 Option 2 Analysis Criteria (simple supported plate-girder bridge (single span slab arch bridge) of prestressed concrete) More difficult construction with Technical Difficulty Easy construction with reliable design reliable design and construction and feasibility and construction technique technique The bridge foundation and pier pertains The process of casting in situ is Construction to the conventional construction; the adopted through the whole Difficulty cored slab is pre-manufactured, which is construction, which is more easier. difficult. Construction Due to easy construction, less equipment Slow construction resulting in Period is required with shorter construction longer construction period

99 period. The bridge deck is simple and The bridge deck is simple and Ride Comfort continuous, which driving condition is continuous, which driving medium. condition is medium. Maintenance Complex maintenance with Easy maintenance with low cost Complexity higher cost Landscape Simple style with medium landscape Ancient shape with good Coordination and coordination aesthetic effect Aesthetic Effect Cost Lower Higher Source: FSR for Shenbei Subproject, 2011

377. For the construction of No.9 Road Bridge in Qingshuitai Town, two options were evaluated. There is an existing hollow slab bridge built in 2005 with the length of 48 m and the width of 9 m. Option 1 is to retain the existing bridge and build a new one in parallel, which avoids wasting of resources and has lower cost. Option 2 will demolish the existing bridge and construct a new hollow slab bridge which has the characteristics of better connectivity with the new road, less limitations, but higher cost. Option 1 was selected since the service life and bearing capacity of the existing bridge satisfies the relevant requirement of proposed road grade.

378. Xinglongtai Town – Bridge. In terms of the four bridges (No.1, 3, 4, 5 Road Bridge) to be built in Xinglongtai Town, the simple supported plate-girder bridge of reinforced concrete was adopted. Compared with the continuous beam bridge, the selected structure is widely used for medium-small span bridges with the characteristics of low cost, easy construction and maintenance and less land occupation. Two options were considered for the design of span, i.e. single span and two-span. Single span bridge was selected due to the fact that the rivers crossed by the proposed bridges are artificial irrigation channels with small span, and the number of piers should be minimized to avoid blocking water flow.

3. Heishan Subproject

379. Site Location. For the construction of the new trunk road, two alignments were considered in the FSR: one linking with and extending Xingongye Street and one linking with and extending Xinxing Street. Xingongye Street was selected due to less land occupation, higher demand for traffic flow, better geological condition and lower cost.

4. Huanren Subproject

380. Bridge. Two structures were considered for the Dongda River Bridge on Hunjiang Street to be built in Huanren County, i.e. slant-legged rigid frame bridge (Option 1) and simple supported plate-girder bridge of prestressed concrete (Option 2). Table V.8 shows the detailed comparison. Option 1 was selected for better integrity, rigidity and aesthetic effect.

Table VI.8: Comparison of Bridge Structure (Huanren Subproject) Option 2 Option 1 Analysis Criteria (simple supported plate-girder (slant-legged rigid frame bridge) bridge of prestressed concrete) Technical Medium difficult construction with Easy construction with reliable Difficulty and reliable design and construction design and construction technique feasibility technique The bridge foundation and pier pertains The bridge foundation and pier to the conventional construction; the Construction pertains to the conventional upper support frame uses the process Difficulty construction; the cored slab is pre- of casting in situ which construction is manufactured, which is easier. convenient.

100 Option 2 Option 1 Analysis Criteria (simple supported plate-girder (slant-legged rigid frame bridge) bridge of prestressed concrete) The support frame is set up during Due to easy construction, less Construction construction, which needs more equipment is required with shorter Period processes with longer construction construction period. period. The driving conditional is good due to The driving condition is medium Ride Comfort integral bridge deck. due to less rigidity. Maintenance Easy maintenance with low cost Easy maintenance with low cost Complexity Landscape Attractive appearance with good Simple style with medium Coordination and landscaping landscape coordination Aesthetic Effect Cost A little higher Lower Source: FSR for Huanren Subproject, 2011

5. Waitoushan Subproject

381. Bridge. Two structures were compared for the Beisha River Bridge on Songbei Street in the FSR, i.e. simple supported plate-girder bridge of prestressed concrete (Option 1) and continuous beam bridge of prestressed concrete (Option 2). Table VI.9 shows the detailed comparison. Option 2 was selected for its integral structure, good aesthetic effect and superior driving condition.

Table VI.9: Comparison of Bridge Structure (Songbei Street Beisha River Bridge) Option 1 Option 2 (simple supported plate-girder Analysis Criteria (continuous beam bridge of bridge of prestressed prestressed concrete) concrete) Technical Easy construction with reliable More difficult construction with reliable Difficulty and design and construction design and construction technique feasibility technique The bridge foundation and pier The bridge foundation and pier pertains to pertains to the conventional the conventional construction; the girder Construction construction; the cored slab is body is made to use support frame Difficulty pre-manufactured, which is casting in situ, which construction is more easier. difficult. Since the full framing construction Due to easy construction, less Construction technology of cast-in-place is used, there equipment is required with Period are more processes with longer shorter construction period. construction period. The bridge deck is simple and The driving conditional is good due to Ride Comfort continuous, which driving integral bridge deck. condition is medium. Maintenance Easy maintenance with low cost Easy maintenance with low cost Complexity Landscape Simple style with medium Beautiful style with nice landscape Coordination and landscape coordination coordination and aesthetic effect Aesthetic Effect Cost Lower Higher

382. Road-railway Overpass Bridge. The underpass type was selected due to the consideration of traffic safety, land occupation, noise control and urban landscaping. Two structures of the underpass were considered in the FSR, i.e. one single frame bridge (Option 1) and two separate frame bridge (Option 2).

383. For Option 1, the construction is easy with lower cost; however, U-type trough

101 structure is complex, and there is potential safety risk during operation. In terms of Option 2, the jacking construction is difficult because of two independent structures, resulting in longer construction period and higher cost; however, its road function is distributed rationally without potential safety risk during operation. The Option 2 was selected as a result.

102 VII. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE

A. Legislative Framework for Consultation, Participation and Information Disclosure

384. Meaningful participation and consultation in the evaluation of project planning, feasibility study, design and implementation is an important part of EIA and an important environment safeguards requirement; it can directly reflect the public‘s perceptions on environmental quality in the project‘s area of influence. Relevant provisions in the Environmental Protection Law of PRC and the Regulations on the Administration of Construction Project Environmental Protection (Order of the State Council, No. 253) require that ―Environmental Impact Report formulated by construction unit shall be in accordance with relevant laws to solicit the opinions of units concerned and inhabitants of project construction site". ADB‘s Safeguard Policy Statement also requires meaningful participation, consultation and information disclosure. The consultation processes for this Project therefore follow both the PRC requirements and the ADB requirements (most recently amended in the ADB Safeguards Policy Statement of 2009).

385. The PRC EIA requirements and attendant public consultation requirements differ among the subproject sectors. Information disclosure and public consultation for each subproject have been conducted during preparation of the FSRs, domestic EIAs and the CEIA. Information disclosure and consultation included: internet/newspaper disclosure, informal communication with key stakeholders which include residents, local authorities and sector specific institutions and authorities; questionnaire surveys; and wider meetings attended by affected people and other concerned stakeholders.

B. Information Disclosure

386. Two rounds of information disclosure for each subproject were conducted by the EIA Institute, which details are summarized in Table VII.1. The first round of information disclosure was carried out during the early stage of EIA preparation, which content mainly included a detailed description of project scope, contact details of PMO, EIA Institute and local EPB, major procedures and scope of the EIA, and main aspects and approaches for public consultation. The second round of information disclosure was undertaken after the preparation of draft EIA report to solicit public comments and suggestions on the preliminary findings of the EIA, including the potential impacts identified, proposed mitigation measures and conclusions.

Table VII.1: Summary of Information Disclosure 1st Information Disclosure 2nd Information Disclosure Subproject Date Location Posted Date Location Posted Aug. 23, Posted on local website – Sept. 9, Posted on each related Xinmin 2011 www. Xinmin.gov.cn 2011 project site Posted on the website of Posted on the website of Shenbei Aug. 1, Aug. 20, EIA Institute – www. EIA Institute – www. (Wastewater) 2011 2011 syhky.com syhky.com Posted on the website of Posted on the website of Sept. 1, Oct. 24, Shenbei (Road) EIA Institute – www. EIA Institute – www. 2011 2011 syhky.com syhky.com Posted on the website of Posted on local Sept. 9, Oct. 24, Heishan EIA Institute – www. newspaper – Heishan 2011 2011 laes.com.cn Express

103 1st Information Disclosure 2nd Information Disclosure Subproject Date Location Posted Date Location Posted Sept. Posted on the website of Posted on the website of Oct. 12, Huanren 15, EIA Institute – www. EIA Institute – www. 2011 2011 laes.com.cn laes.com.cn Posted on the website of Oct. 10, Posted on local newspaper Oct. 21, Gaizhou Yingkou EPB- www. 2011 – Yingkou Daily 2011 ykepb.gov.cn Nov. 9, Posted on local newspaper Nov. 21, Posted on local Fuxin 2011 – Fuxin Daily 2011 newspaper – Fuxin Daily Posted on local government Posted on local Nov. 5, Nov. 21, Waitoushan website – www. government website – 2011 2011 betda.gov.cn www. betda.gov.cn Source: EIA for each subproject, 2011

387. During the project information disclosure, the EIA Institutes also communicated with local people and companies/organizations on project sites to collect preliminary public opinions on the project via social medium such as television, local radios and newspaper etc. The project‘s environmental information will be further disclosed by the local EPBs and ADB.

C. Consultation

388. Two rounds of public consultation for each subproject were undertaken by the EIA Institute, local PMO and PPTA consultant, which information is summarized in the table below.

Table VII.2: Summary of Public Consultation 1st Round of Public Consultation 2nd Round of Public Consultation Subproject Date Method Date Method Questionnaire & Xinmin Sept. 20, 2011 Nov. 3, 2001 Questionnaire Meeting Shenbei Oct. 22-26, 2011 Questionnaire (Wastewater) Nov. 4, 2011 Questionnaire Shenbei (Road) Oct. 23-28, 2011 Questionnaire Heishan Oct. 14, 2011 Meeting Oct. 25, 2011 Meeting Huanren Oct. 22, 2011 Questionnaire Nov. 18, 2011 Questionnaire Gaizhou Oct. 20-21, 2011 Questionnaire Nov. 2011 Meeting Fuxin Oct. 28-29, 2011 Questionnaire Nov. 2011 Questionnaire Waitoushan Oct. 25, 2011 Questionnaire Oct. 23, 2011 Questionnaire Source: EIA for each subproject, 2011

1. First Round of Consultation

389. Questionnaire copies were distributed by the EIA Institute to the project-affected people and beneficiaries, including different age groups, genders, educational backgrounds and occupations. Table VII.3 shows the relevant results.

Table VII.3: Results of 1st Round of Questionnaire Respondents Questionnaire Questionnaire Issues Reported by Subproject Support Distributed Returned Respondents Project (%) Respondents understood that negative impacts would occur Xinmin 80 80 100 during construction, but agreed that proper mitigation measures

104 Respondents Questionnaire Questionnaire Issues Reported by Subproject Support Distributed Returned Respondents Project (%) would be a satisfactory outcome. Respondents were satisfied with Shenbei 50 50 100 the master plan and ancillary (Wastewater) facilities of the project. Respondents understood that negative impacts would occur during construction, but stressed that proper mitigation measures would be needed for a satisfactory outcome.

Shenbei 50 50 98 Respondents said that (Road) landscaping should be adopted to mitigate the traffic noise and air pollution.

Compensation and resettlement issues were raised by the majority of respondents. All respondents accept the environmental impact caused by the project if appropriate Huanren 130 130 100 mitigation measures are adopted

Respondent support monetary compensation for resettlement. Support for road alignments.

Gaizhou 160 160 80 Proper compensation and resettlement conditions were cited as concerns. All respondents believe that the project will improve the local heating supply and living Fuxin 60 60 100 condition.

Construction impacts will be minimal. The project will improve the local economy;

Waitoushan 25 25 96 Project should include landscaping and other measures to reduce traffic noise. Source: EIA for each subproject, 2011

390. Based on the results shown in the above table, local people support the project, and believe that the project will improve the local economic development and living standard. The main issues raised by the public include: (i) resettlement and related compensation; (ii) noise and dust control, pedestrian safety and traffic congestion during construction; (iii) quality control of the project construction; and (iv) noise control during operation.

391. The suggestions provided by the public included: (i) avoiding the construction activities at nighttime to minimize the noise and at the rush hour of students to guarantee their safety; (ii) undertaking water spraying to minimize dust; (iii) timely disposal of construction waste with necessary covering; and (iv) protecting existing ecological

105 resources and improving vegetation along roads to reduce the noise during road operation. All these considerations have been included as mitigation and management measures in subproject designs and in the EMP.

2. Second Round of Consultation

392. Results of Questionnaire survey. The questionnaire surveys were undertaken by the PPTA consultants 27 in five subproject sites to study public opinion and complaint behavior (see Table VII.4). The results have been used in the design of the grievance redress mechanism (GRM). The consultation aimed at ensuring that the project affected people are aware of the existence of a GRM process for the implementation of the project and agree with its structure. The meeting was also used to present the main anticipated impacts and the proposed mitigation measures, as defined in the draft EIAs and the CEIA.

Table VII.4: Results of 2nd Round of Questionnaire Item Xinmin Shenbei Huanren Fuxin Waitoushan Total sample size 53 50 58 42 54 14 28 17 Complaint 27 (54%) 38 (70.4%) (27.5%) (48.3%) (40.5%) Do people complain or Not 37 30 25 not if their daily life is 23 (46%) 16 (29.6%) Compliant (72.5%) (51.7%) (59.5%) disturbed by the project? Not 2 0 0 0 0 Respond 8 10 14 Contractor 1 (4.2%) 25 (56.8%) (33.3%) (38.5%) (31.1%) 3 5 Which organization will Owner 0 (0%) 4 (8.9%) 3 (6.8%) (11.5%) (20.8%) be selected by the public 16 18 in case of compliant? Local EPB 13 (50%) 27 (60%) 16 (36.4%) (66.6%) (75%) Not 29 24 13 18 10 Respond Primary environmental issue during Traffic Dust Dust Noise Noise construction Safety Note: The data shown in the brackets represent the correspondent result in percentage.

393. The results in Table VII.4 indicate that the public in most subproject areas are not accustomed to complain if their daily life is disturbed due to project construction except for Waitoushan Subproject. In case of public complaint, the local EPB is preferred to be selected by people. In addition, the top three environmental issues during construction identified by the public include dust, noise, traffic safety and congestion. These concerns have been considered extensively in the EIAs and specific mitigation measures to avoid or minimize their impacts are included in the EMP.

394. Results of Consultation Meeting. The consultation meetings primarily focused on the setting up, refining and dissemination of the GRM developed for the project. The consultation meeting for Heishan Subproject was held by local PMO and the EIA Institute in October 2011. 56 participants covered the representatives from the schools, old people‘s nursing homes and residents nearby the construction sites and the local government departments. In terms of Gaizhou Subproject, the meeting was held by the EIA Institute in November 2011. 32 participants were from local residents and enterprises.

27 With the assistance of professional institute of social survey

106

395. During the consultation meetings, the proposed GRM in Chinese was distributed to the participants and clear explanation was made. All of the participants provided supportive responses to the proposed GRM and believe that the proposed GRM is practical and accessible, and will help address project related grievances.

396. All of the concerns and suggestions expressed during two rounds of public consultation have been summarized and provided to the design institutes. The relevant concerns and suggestions have been considered in FSR revisions, and appropriate mitigation measures were defined in the domestic EIAs, this CEIA, and the EMP.

3. Future Consultation

397. Meaningful consultation to safeguard the environment and local communities will continue throughout detailed design, construction and operation phases. The implementing agencies (IAs) and Subproject PMOs will be responsible for organizing the public consultations, with the support of the environmental specialists and social safeguard specialists of the loan implementation consultancy. The contractors will be required to communicate and consult with the communities in the project area of influence, especially those near road alignments and transportation routes. Eye-catching public notice boards will be set at each site to inform on the purpose of the project activity, the duration of disturbance, the responsible entities on-site (contractors, CSCs, IAs), and the project level Grievance Redress Mechanism (GRM). Contact information of all GRM entry points and the Project Public Complaints Unit‘s (PPCU) will be disclosed on the construction site information boards. Consultation will focus on public complaints about public nuisances from construction and operation activities, such as noise, odor nuisance, dust, traffic disturbance, as well as public concerns about the environment and resettlement.

398. Future consultation and participation will also include (i) involvement of affected people during inspection and monitoring of EMP implementation during construction and operation phases; (ii) participatory evaluation on the environmental and social-economic benefits and impacts; and (iii) consultation with the public after the project completion.

399. The project‘s environmental information will be disclosed by ADB as follows: (i) This CEIA will be available for review at www.adb.org for 120 days before ADB Board consideration; (ii) Copies of the domestic EIAs (in Chinese) are available on request to the PMO; and, (iii) Environment progress and monitoring reports will be prepared on a semi- annual basis and will be disclosed on ADB‘s project website (www.adb.org).

107 VIII. GRIEVANCE REDRESS MECHANISM

400. A grievance redress mechanism (GRM) was established in each project city in compliance with ADB‘s SPS (2009) requirement to prevent and address community concerns and assist the project to maximize environmental and social benefits. In addition to serving as a platform to resolve grievances, the GRM has been designed to help achieve the following objectives: (i) open channels for effective communication, including the identification of new environmental issues of concern arising from the project; (ii) prevent and mitigate any adverse environmental impacts on communities caused by project implementation and operations; (iii) improve mutual trust and respect and promote productive relationships with local communities; and (iv) build community acceptance of the project.

401. The GRM will be accessible to diverse members of the community, including more vulnerable groups such as women and youth. Multiple points of entry, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. Opportunities for confidentiality and privacy for complainants will be honored where this is seen as important.

A. Current Practice

402. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Moreover, based on the regulation (Decree No. 431), former State Environmental Protection Administration published updated Measures on Environmental Letters and Visits (Decree No. 34) in 2006.

403. As the current practice, when residents or organizations are negatively affected by project activities, they may complain to the contractors and IAs by themselves or through their community committee; others may complain directly to the district EPB or municipal EPB before they finally appeal to the court. Among the agencies involved, the local EPB takes the leading coordination role in dealing with the environmental complains from the public.

404. In case of problems during construction, affected people usually complain to the contractors first, if they believe the construction activity is the source of the problem. If the response of the contractor is unsatisfactory, affected people will contact the local EPB or the local government. The EPB then usually consults with the EA and IA and/or environmental supervision engineers to develop project understanding. This kind of fact finding or site investigation is usually time-consuming, thus delaying the mediation process. The major weaknesses of the current system are: (i) the lack of a specialized unit to address grievances; and (ii) no specific timeframe for the redress of grievances.

B. Proposed Mechanism

405. The Provincial PMO (PPMO) will establish a Project Public Complaint Unit (PPCU). The PPCU will instruct contractors and construction supervisors if people complain about the project. The PPCU will coordinate with the Subproject PMOs (SpPMOs), IAs, and local EPBs, if necessary, and will be supported by the environmental consultants of the loan implementation consultancy services.

406. When construction starts, a sign will be erected at each construction site providing

108 the public with updated project information and summarizing the grievance redress mechanism process including details of the GRM entry points. The contact persons for different GRM entry points, such as Subproject PMOs (SpPMOs), IAs, community leaders, contractors, operators of project facilities, local EPBs, PPCU, etc., will be identified prior to construction. Each contractor will also assign an environment, health and safety officer (EHSO). The contact details for the entry points (e.g. phone numbers, addresses, e-mail addresses, etc.) will be publicly disseminated on information boards at construction sites and on the website of the local government. The proposed GRM is shown in Figure VII.1.

407. The PPCU will establish a GRM tracking and documentation system. The system will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) dedicated staff to update the database routinely; (iii) systems with the capacity to analyze information so as to recognize grievance patterns, identify any systemic causes of grievances, promote transparency, publicize how complaints are being handled, and periodically evaluate the overall functioning of the mechanism; (iv) processes for informing stakeholders about the status of a case; and (v) procedures to retrieve data for reporting purposes, including the periodic reports to the PPMO, the SpPMOs, the IAs and ADB.

C. Types of Grievances Expected and Eligibility Assessment

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

409. Once a complaint is received and filed, the PPCU will identify if complaints are eligible. Eligible complaints include those where (i) the complaint pertains to the project; and (ii) the issues arising in the complaint fall within the scope of environmental issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is clearly not project-related; (ii) the nature of the issue is outside the mandate of the environmental GRM (such as issues related to resettlement, allegations of fraud or corruption); and (iii) other procedures are more appropriate to address the issue. Complaints illegible to the project or the environmental GRM will be recorded and passed onto relevant authorities. If an eligible complaint is rejected, the complainant will be informed of the decision and the reasons for rejection.

D. GRM Procedure and Timeframe

410. The procedure and timeframe for the grievance redress mechanism are described as follows (see Figure VII.1). The three stages are represented by different colors in the flow diagram:

(i) Stage 1: If a concern arises during construction, the affected person will submit a written or oral complaint to the contractor directly (the contractor‘s environment health and safety officer or any onsite construction personnel). Whenever possible, the contractor will resolve the issue directly with the affected person. The contractor will give a clear reply within one week. If successful, the contractor

109 will inform the PPCC accordingly.

(ii) Stage 2: If no appropriate solution can be found, the contractor has the obligation to forward the complaint to the PPCU within five (5) working days. The complainant may also decide to submit a written or oral complaint to the PPCU, either directly or via one of the GRM entry points (SpPMO, IA, community leader, local EBP). For an oral complaint, proper written records must be made. The PPCU will assess the eligibility of the complaint, identify the solution and provide a clear reply for the complainant within five (5) working days. The environment consultants of the loan implementation consultancy service will assist the PPCU in replying to the affected person. The PPCU will also inform the ADB project team and submit all relevant documents. Meanwhile, the PPCU will timely convey the complaint/grievance and suggested solution to the contractors or operators of facilities. The contractors during construction and the operators during operation will implement the agreed upon redress solution and report the outcome to the PPCU within seven (7) working days.

(iii) Stage 3: In case no solution can be identified by the PPCU, or the complainant is not satisfied with the proposed solution, the PPCU will organize, within two (2) weeks, a multi-stakeholder hearing (meeting) involving all relevant stakeholders (including the complainant, contractor, facility operator, local EPBs, PPMO, SpPMO, IA). The hearing shall identify a solution acceptable to all, and formulate an action plan. The contractors during construction and the operator during operation will implement the agreed-upon redress solution and report the outcome to the PPCU within the agreed upon timeframe.

411. The PPCU shall accept complaints/grievances free of charge. Any cost incurred should be covered by the contingency of the project. The grievance procedures will remain valid throughout the duration of project construction and until project closure.

110 Grievances/Complaints by APs, Groups or Institutions

Oral or written complaint Solution Oral or written Found complaint

Local EPBs, SpPMOs, Contractor/Operator Stage 1 IAs, community leaders

Forward Inform if solved; Forward if not solved

Project Public Complaint Unit (PPCU) under PPMO

Record complaint, assess eligibility of complaint, inform relevant stakeholders, including ADB

Solution not found Consult LIEC, SpPMO, IA, and contractor identify solution, get complainant‘s consent Stage 3

Solution Conduct multi-stakeholder found meeting (contractor, PPMO, SpPMO, IA, complainant, EPB, Stage 2 LIEC), identify solution and action plan. ADB will participate if Solution necessary. found

Implement Solution

During During Construction Operation

Contractor Operator

Note: AP = affected person, EPB = environmental protection bureau, LIEC = loan implementation environmental consultant; PPMO = Provincial project management office; SpPMO = Subproject PMO; IA = Implementing Agency.

Figure VIII.1 Concept of Proposed GRM

111

IX. ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

412. The environmental management plan (EMP) covers all phases of subproject implementation from preparation through commissioning and operation of all subprojects, and it aims to ensure the monitoring of environmental impacts and activation of environmental mitigation measures. Relevant parts of the EMP will be incorporated into the construction, operation, and management of each sub-component.

413. Environmental protection measures will (i) mitigate environmental impacts, (ii) achieve compliance with national environmental regulations and ADB safeguard standards, (iii) provide compensation or offsets for lost environmental resources, and (iv) enhance environmental resources.

414. Environmental monitoring programs will be carried out and the results will be used to evaluate the extent and severity of actual environmental impacts against the predicted impacts and the performance of the environmental protection measures or compliance with related rules and regulations.

B. EMP Implementation Responsibilities

415. The Project Administration Manual (PAM) provides the institutional organization for the Project illustrated in Table IX.1 below. In this table, the responsibilities related primarily to the environmental management of the Project are listed.

Table IX.1 Institutional Responsibilities for Environmental Management Project implementation Environmental Management Roles and organizations Responsibilities

Provincial Project Coordination and overall management to ensure smooth Management Office (PPMO) - implementation of the Project Liaoning Urban Construction and Renewal Project Office  Supervision the work of the subproject PMOs (LUCRPO)  Procurement of Loan Implementation Environmental Consultant (LIEC) to assist in supervision, tracking and reporting on EMP implementation of all subprojects.  Procurement of external environment expert (EEE) to conduct independent EMP compliance verification.  Packaging of environmental monitoring reports prepared by the subproject PMOs and submission of them to ADB  Establishment of a Grievance Redress Mechanism (GRM) with a dedicated Project Complaints Coordinating Unit (PCCU).

112 Project implementation Environmental Management Roles and organizations Responsibilities

Subproject PMOs (SpPMOs) Overall guidance and support to the preparation and implementation of the subprojects  Benxi City PMO  Fuxin City PMO  Preparation of final environmental management plan (EMP)  Gaizhou City PMO relating to each subproject  Huanren County PMO  In conjunction with IAs, and with the assistance of Design  Heishan County PMO Institutes, incorporation of EMP into bidding documents for  Shenbei New District PMO construction contractors  Xinmin City PMO  Supervision of the implementation agencies responsible for implementing the EMP  Tracking of the EMP implementation and reporting to the Provincial PMO  Act as a local entry point for the Project GRM and deal with/refer complaints to the PCCU

Implementing Agencies (IA) Ensuring successful implementation of the relevant subproject components  Benxi Yaodu  Fuxin City Municipal  In conjunction with Subproject PMOs, incorporation of EMP into Management Department bidding documents for construction contractors  Gaizhou City Municipal  Procurement and management of construction supervision Management Department companies (CSC) required for subproject implementation in  Huanren County Municipal accordance with People‘s Republic of China (PRC) and ADB Management Department procedures and regulations  Heishan County Municipal  Procurement of environment monitoring centers (EMCs) to Management Department conduct environment effect monitoring  Shenbei New District  Execution of the approved environmental management plan Municipal Management (EMP) Department  Monitoring of environmental performance and reports to the  Shenbei New District Subproject PMO Water Works  Participation in capacity building and training programs  Xinmin Municipal  Commissioning of the constructed facilities Management Department

113 Project implementation Environmental Management Roles and organizations Responsibilities

Facility Operators Ensuring successful ongoing operation and maintenance of the relevant subproject components  Shenbei New District Municipal Management  In conjunction with IAs, commissioning of the constructed Department (SMMD) facilities  O&M of completed facilities, including environmental  Shenbei New District management, monitoring and reporting responsibilities. Water Works (SWW)

 Xinmin Municipal Management Department (XMMD)

 Heishan County Municipal Management Department (HSMMD)

 Gaizhou City Municipal Management Department (GMMD)

 Fuxin City Municipal Management Department (FMMD)

 Huanren County Municipal Management Department (HRMMD)

 Liaoning Yaodu Investment (Group) Ltd. Company (Yaodu)

416. The Provincial Project Management Office (PPMO) - Liaoning Urban Construction and Renewal Project Office (LUCRPO) has the responsibility of co-ordination and overall supervision of Project Implementation. The PPMO will co-ordinate and assist the implementation of the EMP by the Subproject Project Management Offices (SpPMOs).

417. In the design stage, the SpPMOs and the IAs will pass the EMP to design institutes to incorporate mitigation measures in the detailed designs. The EMP will then be passed on to construction contractors through the bidding process. To ensure that the contractors comply with the EMP‘s provisions, the SpPMOs and IAs with the help and technical support of the loan implementation environmental consultant (LIEC), will prepare and provide the following specification clauses for incorporation into the bidding procedures: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals; (ii) environmental clauses for contractual terms and conditions; and (iii) major items in domestic EIAs, the CEIA and the EMP. The SpPMOs will prepare semi-annual environment progress reports, which will be consolidated by the PPMO and submitted to ADB.

418. Each IA shall form an environmental management unit (EMU) to coordinate environmental issues associated with each subproject on behalf of the IA. The EMU will take charge of (i) implementing the EMP and developing implementation details; (ii) supervising the implementation of mitigation measures during construction; (iii) the internal monitoring and coordinating the compliance monitoring of construction supervision companies (CSCs);

114 (iv) implementing training programs for contractors; (v) incorporating environmental management, monitoring, and mitigation measures into the construction and operation management plans; (vi) reporting on the EMP performance to the Subproject PMOs; and (vii) arranging environmental monitoring reviews and responding to any adverse impact beyond those foreseen in the EIA reports.

419. The SpPMOs will nominate staff to act as environmental supervisors/inspectors check the overall implementation of environmental management provisions of the EMP. Their work will coordinate with, and be assisted by, the EMUs of the IAs. It will also be supported by the LIEC. Construction contractors and the CSCs contracted by each of the IAs will be responsible for the daily inspection, monitoring, and evaluation of mitigation measures‘ implementation. The SpPMOs will receive reports of all these activities and pass them on to the Provincial PMO.

420. During the operational phase, the EPBs and the SpPMOs will supervise the environmental management and implementation of mitigation measures by the subproject operators. The cost of mitigation measures in this phase will be borne by the relevant facility operators. Environmental monitoring centers (EMCs) contracted and paid for by the IAs will ensure compliance with the PRC‘s environmental standards and regulations through regular and random environmental effect monitoring and inspection during construction and operation.

421. The LPG will provide the IAs with financial and management autonomy to operate project facilities. Since the IAs have limited capacity for environmental management, relevant training has been arranged, which has been summarized in Table IX.8 below.

C. Role of the Loan Implementation Environmental Consultants

422. The Loan Implementation Environmental Consultants (LIEC) can be either a company or individuals, contracted by the Provincial PMO (PPMO) to provide assistance during the pre-construction, construction and initial operational periods. The LIEC should be contracted as soon as possible after loan approval so that the LIEC can assist in the important pre-construction activities listed in the EMP. The LIEC will advise the PPMO, the SpPMOs, the IAs and contractors on all aspects of environmental management and monitoring for the Project. The LIEC will (i) assist LPG and PPMO to design the PPMS in terms of environmental management; (ii) assist PPMO and SpPMOs to update the EMP and environmental monitoring program; (iii) review the Site Environmental Management and Supervision Manual, the Emergency Preparedness and Response Plan, and the Site Environmental Health and Safety Plan (iv) review the implementation of the environmental protection measures specified in the EMP; (v) review internal and environmental effect monitoring reports; (vi) prepare the semi-annual environmental monitoring report; (vii) provide training to SpPMOs and IAs on environmental management implementation and monitoring (items T1, T2, T4, T5, T7 and T9 in Table IX.9) and assist in the preparation of training materials (items T3, T6, and T8 in Table IX.9); (viii) identify any environment-related implementation issues and necessary corrective actions and reflect these in a corrective action plan; and (ix) undertake site visits as required.

D. Role of External Environmental Expert (EEE)

423. In response to ADB‘s Safeguard Policy Statement (2009), the environment performance of the project will be verified by an external, qualified expert. The external environmental expert (EEE) will be employed by the Borrower using proceeds from the loan. The EEE will (i) verify the internal and environmental effect monitoring information provided by the Borrower; (ii) review the semi-annual environmental monitoring report prepared by

115 LPMO and the LIEC; (iii) conduct its own investigation by visiting the project sites, taking samples and/or conducting visual inspections; (iv) identify any environment-related implementation issues and EMP compliance issues and necessary corrective actions; and (v) prepare a EMP compliance verification report for ADB and the client.

E. Summary of Potential Impacts and Mitigation Measures

424. Table IX.2 summarizes the potential impacts of the sub-components during construction and operation as identified by the environmental impact assessment (EIA), as well as corresponding mitigation measures designated to minimize those impacts. Each subproject IA has prepared environmental management sections in the EIAs covering the components within their jurisdiction. These have been integrated into a consolidated EMP and environmental monitoring plan in this chapter covering all subproject sectors and settings (see Tables IX.2 and IX.5).

425. The following mitigation measures will be incorporated into tender documents, construction contracts, and site management plans. The effectiveness of these measures will be carefully watched via the environmental monitoring to determine whether to continue them or to make improvements.

Table IX.2: Summary of Potential Impacts and Mitigation Measures

For all Components For Road Sub-Components only For Wastewater Sub-Components

only For Heating Sub-Components only

Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts Pre-construction 1.1 Feasibility Site/alignment The recommended sites for IAs, LDI and IA, local Included in and Design selections the individual sub- PPTA team EPB* the FS stage components were selected Stage from various alternatives to minimize adverse impacts on the environment. EIA reports As required by law, ensure EIA Institutes IA, local Included in EIA has been prepared for and PPTA EPB* the FS and each subproject. team on Design behalf of IAs Stages Public Meaningful consultation IA, PPTA IA, Included in consultations conducted in each county team the FS on environmental issues, Stage poverty, resettlement and the Grievance Redress Mechanism during the project design and EIA preparation. Resettlement As required by law, prepare LDIs, IAs and SpPMOs and Included in Plans RPs for the Project in each PPTA team PPMO the RP subproject locality to required ADB and PRC standards. i. Establish a resettlement office comprising local government officials to manage the resettlement

116 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts process. ii. Conduct community consultation programs and ensure information is disseminated about entitlement based on the Land Administration Law. iii. Ensure that all relocation and resettlement activities are reasonably completed before construction starts on any subproject. iv. Include provisions for households suffering economic displacement through new landfill controls. Verification of To confirm design standard LDI, IA SpPMO Included in inflow quality of WWTP, monitor influent the Detail quality from Qingshuitai and Design verify that planned process Stage will achieve Class 1A discharge standard. Design for failures Design of WWTP to LDI, IA SpPMO Included in and overflows include: the Detail i. Spare parts for key Design components; Stage ii. Regular inspection and proper maintenance of the WWTP; iii. Regular staff training; and iv. automated online, real- time monitoring of influent and effluent quality.

An emergency holding pond with a volume equivalent to 12 hours operation will be constructed as part of the plant to deal with a possible accidental release. Sludge transport A transport plan that, at a LDI, IA SpPMO Included in planning, sludge minimum, identifies the the Detail emergency route, time of day, Design response plan frequency of hauling, type Stage of truck to use, truck speed, will be developed and implemented to cover transport of sludge.

An emergency preparedness and response plan should be included to cover slurry spillage during transport.

The approval of Shenyang EPB and of other concerned government

117 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts agencies (e.g., city health office) as required for the transport, will be obtained.

A back-up system and emergency response plan for sludge storage and landfill disposal in case of temporary closure of the centralized sludge treatment plant will be developed. Bridge designs to Design bridges and culverts DI, IAs SpPMOs Included in minimize with an adequate hydraulic the Detail hydrological opening to ensure effective Design impacts flood discharge capacity stage (100-year flood) Bridging is either by box culvert or continuous beam where the in-stream structures (box culvert sides or piles) account for less than 25% of the bed width. Stormwater outlets Environmental protection LDI, IAs SpPMOs Included in design measures for stormwater the Detail will include: Design i. trash racks to catch Stage garbage and objects and prevent them entering waterbodies and ii. water velocity dampening structures at outlets to waterbodies, which lack reinforced or canalized banks and beds, to prevent scouring and erosion. 1.2 Establishment of Contracting a Loan PPMO LPG Included in Implementatio implementation Implementation the Detail n Support support positions Environmental Consultant Design (LIEC) and external Stage environment expert (EEE)

Contracting CSCs SpPMOs PPMO Included in the Detail Design Stage Establishment of Nomination/appointment of SpPMOs, LIEC Included in environmental environmental supervisors IAs, the Detail units at different in PMO. Design levels of Stage supervision Establishment of EMUs in each IA with appropriately skilled staff. 1.3 Updating EMP Mitigation measures LDIs, PPMO, LIEC, Included in Construction defined in this EMP will be SpPMOs, IAs local EPB* the Detail Preparation updated and incorporated Design Stage into the detailed design to Stage minimize adverse environmental impacts. Incorporate the provisions LDIs, PPMO, LIEC, Included in of the emergency response SpPMOs, IAs local EPB* the Detail

118 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts plans for road accidents Design involving hazardous Stage materials into the updated EMP Land-take RP will be updated and LDIs, PPMO, LIEC, Included in confirmation incorporated into the SpPMOs, IAs local EPB* the Detail detailed design. Design Stage Contract Prepare environment LDIs, PPMO, LIEC, Included in documents section in the terms of SpPMOs, IAs local EPB* the Detail reference for bidders. Design Prepare environmental stage contract clauses for contractors, namely the special conditions (e.g., reference EMP and monitoring table). Provide Development and SpPMOs, IAs PPMO, ADB comprehensive implementation of and responsive Grievance Redress complaints Mechanism (GRM) process Establishment of PPCU within PMO. Construction site Preparation of Site Head IA Included in planning Environmental contractor for construction Management and each contracts Supervision Manual, subproject including an emergency preparedness and response plan, and site environmental health and safety plan for approval by the IAs.  Include hazardous and polluting materials handling guidelines and directions in the plan.  Include work schedules for each construction site. Where construction techniques or situations require longer work periods extending beyond normal work hours (between 0600 and 2000 hours ) the construction unit must reach prior agreement with APs and provide compensation. Environmental Environmental specialists IAs, local LIEC, EMP costs. Protection Training and/or officials from local EPBs SpPMOs See Table EPBs will be invited to IX.7 provide training on implementation and supervision of environmental mitigation measures to contractors. 1.4 Ancillary Borrow pits and Spoil disposal sites and IAs, LDIs Local EPB* Included in sites and spoil disposal sites borrow pit locations will be the Detail

119 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts construction identified and defined in the construction Design support approved by EPB tender documents, subject stage preparation to approval by the EPBs, and selected using the following criteria: i. Siting to minimize transportation and the need for temporary storage; ii. Siting to avoid potential flood areas or floodways; iii. Sites to be small, and have no encroachment on cultivated land or forestland; iv. Design of spoil disposal sites to be concave land, gullies or gentle slopes. 1.5 Current WWTP Prepare and implement Shenbei New SpPMO, local Included in Infrastructure requires closure action plan for the closure District govt. EPB* the Detail planning and restoration. of the existing WWTP and Design influent pipe network in stage accordance with national standards including proper remediation, sludge disposal and monitoring of environmental conditions. Centralized The construction of SpPMO, PPMO, ADB Included in composting of Shenyang Sludge Shenbei New the Detail sludge Treatment Plant (SSTP) is District govt. Design completed and a 12 month stage operational running-in period successfully achieved before the commissioning of subproject WWTP

The QA/QC mechanisms and compliance process in place at the SSTP before the commencement of operations.

Buffer zone Establish 100m buffer zone IA, Shenbei SpPMO, local Included in around WWTP for around WWTP. Add to New District EPB* the Detail odour resettlement planning if govt. Design and required. RP Traffic Prepare Traffic Contractors IA, local Included in management Management Plan for each Traffic construction planning road subproject. Plan to Bureau contracts include: i. Selecting haulage routes to reduce disturbance to regular traffic (where possible). ii. Diverting or limiting construction traffic at peak traffic hours. iii. Siting and management of interim tracks to avoid traffic problems. iv. Blocking and reinstating

120 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts interim tracks to original condition on completion of construction. Noise prediction Before construction EIA Institute, SpPMO Included in analyses for commences a full predictive IAs the Detail Shenbei and analysis of sensitive Design Gaizhou road receptor sites along all stage – part subprojects roads for 2015, 2020 and of EIA. 2030 will be carried out.

Funds for noise mitigation EMP costs. at affected properties will See Table be reserved. IX.7 Asbestos risk Confirm asbestos in small Licensed SpPMO, EPB EMP costs. assessment local boilers (15) planned asbestos See Table for demolition. assessment IX.7 and removal Define an action plan for all contractor, on boilers, including labelling behalf of IA. requirements, establishment of a register, control mechanism (from elimination, removal or isolation to safe working practices), health and safety requirements, and working procedures for disposal of the asbestos and ACM, based on the World Bank EHS (April 2007). Construction 2.1 Water Wastewater from Latrines and seepage pits Contractors IA, local EMP costs. construction will be installed in any EPB* See Table camps camps. After project IX.7 completion, the sites will be vacated only after waste has been effectively treated or removed. Wastewater from i. Settling ponds, oil-water Contractors IA, local EMP costs. washing separators. EPB* See Table aggregates, ii. Recycled water will be IX.7 pouring and curing used to spray for dust concrete, control. machinery repairs iii. Residue will be removed from site and disposed in municipal landfills. Handling of i. A construction materials Contractors IA, local EMP costs. hazardous and handling and disposal EPB* See Table harmful materials protocol that includes IX.7 spill responses will be a part of the Site Environmental Management Supervision Manual and will be applied to prevent soil and surface/ground water pollution. ii. Construction of storage facilities (including fuel and oil storage), with bunds and clean-up equipment.

121 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts iii. Fuel supplier is properly licensed and follows the proper protocol for transferring of fuel and in compliance with JT 3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods). iv. Vehicles and equipment are properly parked in designated areas to prevent contamination of soil and surface water. v. Vehicle, machinery, and equipment maintenance and refueling will be carried out so that spilled materials do not seep into the soil or into waterbodies. vi. Fuel storage and refilling areas will be located at least 300 m from drainage structures and important waterbodies. vii. Oil traps will be provided for service areas, and parking areas. Hydrological Both the river embankment Contractors IA, local n/a impacts and and the bridge pier EPB* flooding at constructions will be bridge/culvert conducted during the dry construction sites season (from October to next May), and construction during the rainy season shall be prohibited 2.2 Air Generation of dust i. Vehicles carrying soil, Contractors IA, local EMP costs. by construction sand or other fine EPB* See Table activities materials to and from the IX.7 sites must be covered. ii. Materials storage sites must be 300 m from residential areas and covered or sprayed with water. iii. Water will be sprayed on construction sites and access roads each day. iv. All roads and tracks used by vehicles of the contractors or any subcontractors or supplier will be kept clean and clear of all dust, mud, or extraneous materials dropped by their construction vehicles. Air emission from i. Vehicle emissions must Contractors IA, local EMP costs. vehicles and be in compliance with EPB* See Table equipment PRC-GB18352-2005, IX.7 GB17691-2005, GB

122 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts 11340-2005, GB3847- 2005, and GB18285- 2005. ii. Equipment and machinery will be maintained to a high standard to ensure efficient running and fuel-burning. High- horsepower equipment will be installed with tail gas purifier to ensure emissions be in compliance with PRC- GB16297-1996. iii. A regular inspection and certification system must be initiated. Generation of i. Use modern equipment Contractors IA, local EMP costs. asphalt flue gas which complies with the EPB* See Table asphalt flue gas IX.7 standard of GB16297- 1966 ii. Locate asphalt mixing stations at least 500m from residences. 2.3 Noise and Noise from The following safeguards Contractors IA, local EMP costs. Vibration Vehicles and will be implemented: EPB* See Table construction i. Noise levels from IX.7 machinery equipment and machinery to conform to PRC-GB12523-90. ii. Install portable noise shields near sensitive receptors such as schools and residential areas. iii. At construction sites, noise-generating construction work will be stopped between 2000 and 0600 hours. iv. In unexpected cases where construction noise needs to continue into the night, the construction unit must reach an agreement with APs and provide compensation 2.4 Solid Domestic waste i The contractors will Contractors IA, local EMP costs. wastes from construction provide appropriate EPB* See Table camps waste storage containers. IX.7 ii Trash collection bins will be regularly sprayed with pesticides to reduce flies. iii Wastes will be stored away from water bodies and will be regularly hauled to a suitable landfill or designated dumping site. iv Agreements will be signed with local

123 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts authorities for waste disposal, where appropriate, through local facilities and to approved disposal sites. Construction Construction wastes that Contractors IA, local EMP costs. wastes could have cannot be reused will be EPB* See Table adverse impacts regularly transported off- IX.7 on surrounding site for disposal, and not environments. allowed to accumulate on site over long periods. Demolition of small The demolition of small Contractors Fuxin District Govt. local boilers and boilers and disposal of govt. And funding removal of domestic stoves needs to local EPB* domestic stoves be undertaken in will have compliance with standards environmental and for occupational health and occupational safety and disposal of Licensed health impacts demolition wastes. (Law on asbestos the Prevention and Control assessment of Environmental Pollution and removal by Solid Waste of PRC contractor, on (2004) and Occupational behalf of IA. Disease Control Act (2002) and Work Safety Act (2002))

Where asbestos is present, follow action plan for all boilers, including labelling requirements, establishment of a register, control mechanism (from elimination, removal or isolation to safe working practices), health and safety requirements, and working procedures for disposal of the asbestos and ACM, based on the World Bank EHS (April 2007). The handling of fly ash should also be subject to hazardous materials precautions, including laboratory testing to verify their regulatory classification.

2.5 Soil Erosion from The following safeguards Contractors IA, local EMP costs. erosion and construction sites will be implemented for all EPB* See Table ecology construction-related IX.7 earthworks: i. Construct interception ditches and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage. ii. Limit construction and material handling during periods of rains and high winds.

124 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts iii. Stabilize all cut slopes, embankments, and other erosion-prone working areas while works are going on. iv. All earthwork disturbance areas shall be stabilized within 30 days after earthworks have ceased at the sites. Replacement of i. In compliance with the Contractors, IA, local EMP costs. lost vegetation. PRC‘s forestry law, IA IA EPB*, FB See Table will undertake IX.7 compensatory planting of an equivalent or larger area of affected forest trees. ii. The re-vegetation will comprise a selection of species that are suitable for this area and have the most appropriate attributes to survive and serve their designated functions. iii. New plantings will be maintained during the operation period. Erosion from spoil The following safeguards Contractors IA, local EMP costs. disposal sites and will be implemented: EPB* See Table operation of i. Strip and stockpile IX.7 borrow pits topsoil from new sites. ii. Provide temporary detention ponds or containment to control silt runoff. iii. Construct intercepting ditches and drains to prevent outside runoff entering disposal sites, and divert runoff from sites. iv. Preserve existing vegetation where no construction activity is planned. Erosion of banks i. Embankment and pier EMP costs. and sedimentation constructions during See Table of watercourses the dry season only; IX.7 during bridge ii. slopes on both sides of construction bridges and culverts will be protected through the planting of grass and stabilizing vegetation; iii. Slurry from pile drilling in the river bed will be pumped to shore and properly disposed of; iv. Pier construction in the waterbodies will be planned and laid out to ensure adequate

125 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts opening for water flow. 2.6 Social and Resettlement of All affected persons will be IA SpPMOs Included in Cultural affected persons resettled in a timely and the RPs adequate manner, in accordance with the Resettlement Plan. Compensation of All affected persons will be IA SpPMOs Included in lost assets compensated in a timely the RPs and adequate manner, in accordance with the Resettlement Plan. When odor buffer zone for IA SpPMOs Included in WWTP is confirmed, any the RPs resettlement or asset compensation required will be implemented in a timely and adequate manner, in accordance with the Resettlement Plan. Traffic The following safeguards Contractors, IA, Traffic EMP costs. management – all will be implemented: IA authorities See Table projects i. Selecting haulage routes IX.7 to reduce disturbance to regular traffic (where possible). ii. Diverting or limiting construction traffic at peak traffic hours. Traffic The following safeguards Contractors, IA, Traffic EMP costs. management – will be implemented: IA authorities See Table road subprojects i. Siting and management IX.7 of interim tracks to avoid traffic problems. ii. Blocking and reinstating interim tracks to original condition on completion of construction. Community safety i. Advance notice of Contractors, IA, Traffic EMP costs. construction will be IA authorities See Table published before the IX.7 construction through radio and TV. ii. Construction billboards, which include construction contents, schedule, responsible person and complaint phone number, will be erected at each construction site. Work camp health i. Contractors will be Contractors, IA, Local Constructio and hygiene required to safeguard IA and/or n costs environmental hygiene in Provincial the construction camps, Health including the quality of Bureau water supplies. ii. All construction sites must provide the necessary personal protective equipment and other resources to create a safe working environment.

126 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts iii. Construction site operations must comply with PRC‘s State Administration of Worker Safety Laws and Regulations. Cultural heritage i. Cultural heritage values Contractors IA, Local Included in protection will be preserved where Cultural construction identified. In accordance Relics costs with PRC regulations, no Preservation person shall destroy, Office damage, deface, conceal, or otherwise interfere with a relic. ii. In case an important site is unearthed, work should be stopped immediately and the matter promptly referred to the local Cultural Relics Preservation Office for evaluation and decision on appropriate actions. South Mosque, At the construction site near Contractors, Shenyang Included in Xinmin the South Mosque in the IA, SpPMO Cultural construction Xinmin road subproject, the Relics costs and following safeguards will be Preservation contingency applied: Office, (i) No construction Mosque activities, disturbance, Imam stockpiling or vehicle/machinery use will be undertaken on the mosque side of the sidewalk; (ii) Jackhammers and generators will not be operated within 100m of the mosque outer wall; and (iii) All work within 200m of the mosque will be supervised by staff of the Shenyang Cultural Relics Protection Office. (iv) Workers‘ canteen and sanitation facilities will be located at least 100m from the Mosque; (v) Construction activities will be forbidden during Muslim religious service period. (vi) Regular consultation of Mosque imam and Shenyang Cultural Relics Preservation Office 2.7 If unexpected IA SpPMOs Included in Unexpected environmental impacts construction environmental occur during project costs and impacts construction phase, the IAs contingency will update the EMP, and environmental protection measures will be designed

127 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts and resources will be utilized to cope with these impacts Operation 3.1 Water Performance Prior to commissioning of Operator, SpPMO Included in testing of WWTP the WWTP, a series of tests EPB operational processes will be conducted to ensure costs proper functioning of the WWTP and ability to achieve Class 1A discharge standard. Wastewater being i. Install wastewater quality IA and Local EPB Included in discharged without monitoring devices for Operators design and meeting relevant real-time monitoring at operating requirements WWTP costs /standards ii. Establish real-time monitoring framework

Protection of water i. Routine clearing of trash IA and Local EPB Included in quality from racks at stormwater Operators operational Stormwater outlets costs discharge ii. Routine street cleaning 3.2 Air Exhaust emissions iii. Speed limiting signs and IA and Local EPB Included in from predicted enforcement Operators, operational traffic volumes on iv. Air pollution monitoring local TBs costs roads v. Road vehicle inspections to ensure compliance with exhaust emission codes. Exercise town planning County/Distri LPG n/a controls to ensure future ct and City developments of sensitive Planning receivers to vehicle Departments pollutants (hospitals, schools, nursing homes) are not built within 20m of subproject roads Odor from WWTP i. Equip odor generating IA and Local EPB EMP costs. facilities with ventilation Operators See Table or odor containment. IX.7 ii. Implement timely sludge cleanup. iii. Institute daily check, repair and maintenance of all wastewater treatment facilities/equipment. 3.3 Noise Noise from i. Increase control of IA and Local EPB Included in increasing traffic vehicle noise, including Operators operational volumes on Project the installation of costs roads effective mufflers; ii. Traffic and parking management to avoid noise produced by stop- and-start driving and traffic jams iii. Driving speed limitations iv. Large and heavily loaded vehicles forbidden during night time v. Signs and public education to reduce use

128 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts of horn vi. Road maintenance and timely repair of damaged road pavements vii. Noise monitoring at regular intervals to check compliance Noise impact from For road subprojects at IA and SpPMOs, EMP costs. traffic on sensitive Heishan and Huanren only Operators Local EPB See Table receptors small exceedences are IX.7 predicted and will be mitigated by the installation of ventilated sound insulation windows for affected properties in the short and medium term and noise administration fees reserved for mitigation measures in the long term.

i. In the Waitoushan subproject, predicted noise levels exceed PRC Class 4 standard for one component (No.1 Rd) and will require the construction of noise barriers in addition to the usual residential sound-proofing works.

One sensitive receptor site in the Heishan subproject, the geriatric clinic on Bintie Street, will also require additional mitigation measures in the form of a noise barrier wall and noise-absorbing landscaping.

Traffic noise Exercise town planning County/ LPG n/a impact on future controls to ensure future District and developments developments of sensitive City Planning receivers to vehicle noise Departments (hospitals, schools, nursing homes) are not built on subproject roads with noise standard exceedence levels >3 dBA.

Noise produced i. Design and implement IA and Local EPB Included in during wastewater noise absorbing, noise Operators design and treatment reduction, noise operating (mechanical insulation and vibration costs equipment ) reduction measures during operation. Adopt low noise level equipments. ii. Create green buffer zone >10m. 3.5 Solid Solid waste from Develop and implement a IA and Local EPB Included in Waste primary separation sewage solid waste Operators design and of inflow sewage handling plan which operating

129 Item/Media Environmental Mitigation Measures Who Who Costs Issues and and/or Safeguards Implements Supervises Impacts includes: costs i. Packaging, ii. Transportation, and iii. Disposal in landfill Beneficial reuse of Ensure sludge meets WWTP PPMO, ADB Included in sludge from quality standards for reuse Operators design and WWTP at (GB18918-2002) through and SSTP operating Qingshuitai laboratory testing. Operators costs

Transport of dewatered sludge to SSTP for reuse as compost and building materials. Disposal of sludge Develop and implement a IA and Local EPB Included in from sludge handling plan for Operators design and decommissioned decommissioning WWTP operating WWTP in Shenbei which includes: costs i. Collection, initial drying and transport to new WWTP; and ii. Along with sludge from new WWTP, dewatering and transport to SSTP for composting. 3.6 Spills of hazardous i. Establishment of a road IA and Local EPB EMP costs. Emergency materials in road accident emergency Operators, See Table preparedness accidents command organization; local Security IX.7 and response ii. Establishment of an Bureau emergency response plan; iii. Preparation of emergency equipment and training. WWTP An emergency IA and Local EPB EMP costs. breakdowns and preparedness and Operators, See Table overflows response plan will be IX.7 formulated and put in place before the WWTP becomes operational. The emergency preparedness and response plan will address, among other things, training, resources, responsibilities, communication, procedures, and other aspects required to respond effectively to emergencies associated with the risk of accidental discharges. 3.7 Insufficient Conduct training for IA and Local EPB, EMP costs. Environmental environmental environmental management Operators, SpPMOs See Table capacity management and develop facility and County EPB IX.7 capacity staff setup. 3.8 If unexpected IA and SpPMOs Included in Unexpected environmental impacts Operators, operational environmental occur during project costs impacts operation phase, the IA will update the EMP, and environmental protection measures will be designed and resources will be utilized to cope with these impacts

130 Sources: PPTA Team; Subproject EIAs ADB = Asian Development Bank, EIA = Environmental Impact Assessment, EPB = Environment Protection Bureau, FB = Forestry Bureau, IA = Implementing Agency, LDI = Local Design Institute, PPMO = Provincial Project Management Office, SpPMO = Subproject Project Management Office, RP = Resettlement Plan, WRB = Water Resources Bureau, WWTP = Wastewater Treatment Plant. * Local EPB = County, District or City level EPB as appropriate.

F. Assessment of Project Readiness

426. Before construction, the LIEC will assess the project‘s readiness in terms of environmental management based on a set of indicators (Table IX.3), and report it to ADB and the PMOs. This assessment will demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met.

Table IX.3: Project Readiness Assessment Indicators Indicator Criteria Assessment CEIA approval  The CEIA was approved by ADB, and Yes No and disclosure disclosed on ADB‘s project website Yes No Measures during  Measures defined in Table IX.2, Detailed Design Phase, included in detailed designs detailed design implemented for each component

Yes No EMP update  The EMP was updated after detailed design, and approved by ADB and the local EPBs Yes No Compliance with  The borrower complies with loan covenants loan covenants related to project design and environmental management planning  The completion and agreements to Yes No resettlement plans before the construction  Meaningful consultation commenced in early Yes No Consultation, feasibility stage and clear plans for ongoing GRM consultation during implementation.  GRM (including PPCU) established and Yes No discussed with / disseminated to relevant stakeholders  EMU established within IAs Yes No  LIEC and EEE contracted Yes No  EMCs contracted Yes No Environmental  CSCs contracted Yes No Supervision in  Compliance monitoring plan established Yes No place  Environmental Supervisors/Inspector of Yes No SpPMOs identified  Local EPBs fully appraised about the Yes No subprojects and the relevant EMP  Bidding documents and contracts Yes No Bidding incorporating the environmental activities and documents and safeguards listed as loan assurances contracts with  Bidding documents and contracts Yes No environmental incorporating the impact mitigation and safeguards environmental management provisions of the EMP  Site Environmental Management and Yes No Contractor readiness Supervision Manual, including an emergency preparedness and response plan and site

131 Indicator Criteria Assessment environmental health and safety plan, established for construction sites – and reviewed by LIEC  Environment, Health and Safety Officers Yes No appointed  Internal environmental monitoring plan Yes No prepared Yes No EMP financial  The required funds have been set aside to support support the EMP implementation according to the financial plan. Facility closure  Closure and restoration plans for existing Yes No plans WWTP completed and approved by Shenbei EPB  Demolition plans for small boilers completed Yes No and approved by Fuxin City EPB (including hazardous materials assessments)

 Budget and implementation schedules identified/allocated Yes No  For Shenbei and Gaizhou road subprojects, a Yes No Additional noise full predictive analysis of sensitive receptor sites along all roads for 2015, 2020 and 2030 will be predictive carried out. modeling  Funds for noise mitigation at affected properties Yes No reserved. Sources: PPTA Team Note: ADB = Asian Development Bank, EMP = environmental management plan

427. During the construction and operation of the Project, negative impacts might occur to the environment; appropriate mitigation measures were defined to avoid or minimize these potential impacts. Performance indicators were defined to measure the effectiveness of mitigation measures, including quality of wastewater discharged; groundwater, surface water, soil and air quality; noise; and relevant public health indicators. Table IX.4 below is a list of indicators that measure the environmental performance of the Project.

Table IX.4: Monitoring Indicators of Mitigation Measures and Their Relevant Standard Period Subproject Indicators Standard Constructi All Dust Grade II, Ambient Air Quality Standard on (GB3095-1996) All Noise limits for Construction Noise Limits (GB12523- construction machinery 90) All Vibration Standard for Urban Area Environmental Vibration (GB10070-88) Roads Asphalt flue gas Class II Atmospheric Pollutant Emission Standard (GB16297-1996). Operation Roads CO, PM10 and NO2 Grade II, Ambient Air Quality Standard (GB3095-1996) and EHS guidelines for Air Quality Roads Noise Class 2 and 4 standards of Noise Environment Quality (GB3096-2008) and EHS targets for operational noise. Waste water BOD5, DO, COD, and Class IV and V Surface Water Ambient Treatment: NH3-N Quality Standard (GB3838-2002) Receiving waters Waste water pH, oil, BOD5, COD, Grade 1A of Discharge Standard of Treatment: NH3-N, TP and SS Pollutants for Municipal Wastewater Discharge Treatment Plant (GB18918-2002) Waste water NH3, H2S Class II standard of the Emission

132 Period Subproject Indicators Standard Treatment Plant Standard for Odor Pollutants (GB14554- 93) Waste water Noise Class 3 Emission Standard for Industrial Treatment Plant Enterprises Noise at Boundary (GB12348-2008) and EHS targets for industrial noise Heating Plants Noise Class 2 Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008) and EHS targets for industrial noise Sources: PPTA Team; subproject EIAs

G. Environmental Monitoring

1. Monitoring Program

428. The Project monitoring program will focus on the environment within the project‘s area of influence. A detailed consolidated environmental monitoring program is summarized in Table IX.5 below. The program considers the scope of monitoring, monitoring parameters and frequency.

429. Internal environmental inspection/monitoring. Each contractor will recruit, or assign from its own staff complement, officers for its internal environmental inspection and monitoring during construction; and the IAs‘ EMUs and facility operators shall be responsible for their internal inspection and monitoring during the operation. The SpPMOs‘ environmental supervisors and local EPBs shall be responsible for advising and supervising the monitoring to ensure that environmental mitigation measures defined in the EMP are properly implemented. At the start of project implementation, the IAs‘ EMUs, assisted by the LIEC will prepare more detail for internal environmental monitoring programs to be implemented during construction and operation where necessary to facilitate and clarify their application. Similarly the EMUs and LIEC will incorporate any changes which occur through the EMP mechanism of feedback and adjustments into the monitoring program. Internal monitoring and inspection is to be conducted by the contractors (weekly), CSCs and IAs (monthly), and reported to the ADB semi-annually.

430. Environmental effect monitoring. Licensed environmental monitoring centers (EMCs), contracted and paid by the IAs, shall conduct environmental effect monitoring during both construction and operation, as well as in the event of emergencies. Environmental effect monitoring shall be conducted four times a year, and semi-annual monitoring reports shall be prepared by EMCs and then submitted to the SpPMOs and local EPBs for review. Monitoring requirements are defined in Table IX.5, including the parameters to be monitored, the numbers and locations of monitoring points, as well as monitoring frequencies and durations.

133

Table IX.5: Environmental Monitoring Program

For all Components For Road Sub-Components only For Wastewater Sub-Components

only For Heating Sub-Components only

Implementing Supervise Time and Item Parameters Location Agency Agency Frequency

Construction 1.1 Work pH, SS, DO, Internal monitoring Internal IA Random camp NH3-N, TP, will be conducted at monitoring: spot check domestic BOD5, CODCr, all construction sites Contractors, IA of the wastewater Total coliform, and domestic domestic quality oil wastewater wastewater discharge areas. effluent sites (at least Effect monitoring will monthly) be conducted at Effect monitoring: Local EPB Twice per selected camp sites. Licensed EMC year 1.2 pH, SS, Oil Internal monitoring Internal IA Random Construction will be conducted at monitoring: spot check wastewater all construction sites. Contractors, IA of the and wastewater wastewater Effect monitoring will effluent sites pollution be conducted at Effect monitoring: Local EPB Twice per mitigation selected sites Licensed EMC year measures 1.3 Water pH, SS, DO, Internal monitoring Internal IA Random quality of NH3N, TP, will be conducted at monitoring: spot checks nearest BOD5, CODCr, all construction sites. Contractors, IA water body Total coliform, oil Effect monitoring will Effect monitoring: Local EPB Four times be conducted Licensed EMC per year upstream and downstream of the construction sites 1.4 Air Use of dust Internal monitoring Internal IA Spot check Air pollution shrouds, water will be conducted at monitoring: the prevention spraying. all of the Contractors, IA construction measures construction sites sites Maintenance and sensitive and condition receivers Effect monitoring: Local EPB Twice per of vehicles and Licensed EMC year during equipment. Effect monitoring will construction be conducted at period, two TSP, SOx, NOx work sites and samplings sensitive receivers one day at each location each time 1.5 Noise Leq (dB[A]) Nominated sensitive Internal IA Random, but Noise sites at each monitoring: at least once pollution subproject Contractors, IA monthly, one

134 Implementing Supervise Time and Item Parameters Location Agency Agency Frequency control day each measures time and two samples each day: Once during daytime, once during night time Effect monitoring: Local EPB Random, but Licensed EMC at least four times per year, a day each time and two samples each day: Once during daytime, once during night time 1.6 Soil Topsoil All spoil disposal Internal IA Random Erosion stockpile, sites and monitoring: spot check, control detention construction sites Contractors, IA in rainy measures ponds season and construction, at least four intercepting times a year ditches, Effect monitoring: Local EPB Quarterly rehabilitate Licensed soil construction erosion sites monitoring unit Compensatory Disposal sites and, Internal IA Random plantings. Re- borrow pits monitoring: spot check vegetation of Contractors, IA spoil disposal Effect monitoring: Local EPB Quarterly sites and Licensed soil construction erosion sites. monitoring unit

1.7 Hygiene Health status Construction sites Internal IA Random and disease Hygiene status and work camps and monitoring: spot check Availability of resettlement areas Contractors, IA clean water, and medical Effect monitoring: Local EPB Once a year advice County and HIV/AIDS District Epidemic awareness Prevention Departments Operations: Road, WWTP and Heating Subprojects 2.1 Temperature, Receiving waters, Internal Operator/ Four times a Downstream DO, SS, NH3N, downstream of monitoring: County year surface water TN, TP, BOD5, treated effluent Operators, IA EPB quality COD , discharge (200m). Cr Effect monitoring: Local EPB Four times a fluoride, Licensed EMC year sulfate, nitrate, As, Hg, Gd,

135 Implementing Supervise Time and Item Parameters Location Agency Agency Frequency

Cu, Mn, Se, Cu, Zn, Pb, Cr, Fe, chloride, oils 2.2 pH, CODcr, Effluent discharge Internal Operator/ Four times a Wastewater SS, point monitoring: Local EPB year discharge BOD5, NH3-N, Operators, IA from WWTP TP Effect monitoring: Local EPB Four times a Licensed EMC year 2.3 Air and H2S, NH3 Upwind and Effect monitoring: Local EPB Four times noise Odor downwind of the Licensed EMC per year concentration boundary of WWTP Leq dB(A) 4 monitoring points Effect monitoring: Local EPB Twice a year located at 1m Licensed EMC

outside of the WWTP boundary CO, NOx and At nominated Effect monitoring: Local EPB Twice a year PM10 sensitive sites at Licensed EMC (high and each subproject low dispersion conditions) Leq dB(A) At nominated Effect monitoring: Local EPB Twice a year sensitive sites at Licensed EMC (day and each subproject night) 2.4 Solid Implementation At WWTP and other Internal Operator Spot check, waste of sludge areas covered by monitoring: twice a year handling plan the sludge handling Contractors, IA and utilisation plan Effect monitoring: Local EPB Spot check, Licensed EMC once a year

2.5 Soil and Inspect Revegetation sites Internal Local EPB Spot check, vegetation vegetation (spoil disposal sites, monitoring: once a year survival and planted road verges Contractors, IA coverage rate. and landscaping Effect monitoring: Local EPB Spot check, around WWTP) Licensed EMC and FB every second year Erosion of Regular inspection of Operator Four times embankments embankments and per year and roadside slopes to detect signs batters. of slope instability and ensure re-vegetation. Road drainage structures will be regularly monitored. 2.6 Traffic Vehicle Subproject roads IA Operator, Road traffic flow numbers – local TB monitoring road use program (against predictions) Operations: Associated and Peripheral Facilities 3.1 Water Monitor environmental performance SpPMOs, LPG, ADB Yearly and continued compliance of WWTPs Operators which receive sewage from sewerage pipes laid in road subprojects. 3.2 Solid Monitor environmental performance SpPMO, LPG, ADB Yearly Waste and continued compliance of SSTP Operator

136 Implementing Supervise Time and Item Parameters Location Agency Agency Frequency

which receives sludge from the project‘s WWTP Monitor the continued acceptance of SpPMO, LPG, ADB Yearly sludge from Qingshuitai WWTP. Operator 3.3 Air Report yearly CO2e emissions from SpPMO, LPG, ADB Yearly CHP is producing heat for the Sihe Operator new town. Use GHG accounting methods. Monitor environmental performance SpPMO, LPG, ADB Yearly and continued compliance of Fuxin Operator CHP plant. 3.4 Safety Monitor staff health and safety SpPMO, LPG, ADB Yearly standards and conditions at heat Operator exchange stations and undertake safety checks along all heating pipelines Sources: PPTA Team; Subprojects EIAs

BOD5 = 5-day biological oxygen demand, CCl4 = carbon tetrachloride, CODCr = chemical oxygen demand, DO = dissolved oxygen, EMC = Environmental Monitoring Center, EPB = Environment Protection Bureau, FB = Forestry Bureau, Fe = iron, IA = Implementing Agency, Leq = noise unit, LPG = Liaoning Provincial Government, Mn = manganese, NH3-N = free nitrogen, NOx = nitrogen oxides, SOx = sulfur oxides, SS = suspended solids, SpPMO = Subproject Project Management Office, TP = total particles, TSP = total suspended particles, WRB = Water Resources Bureau; WWTP = Wastewater Treatment Plant. * Local EPB = County, District or City level EPB as appropriate.

431. Independent EMP compliance verification. The internal and environmental effect monitoring as well as the IAs‘ and PMOs‘ compliance with EMP during project implementation and operation will be verified by an independent, external environment expert (EEE) not involved in day-to-day project implementation. The EEE will verify the monitoring information prepared by the Borrower. In verifying, the EEE may conduct its own investigation, by visiting the project site, taking samples and/or conducting visual inspections. The EEE will discuss the verification results with the PPMO, the IAs and the LIEC, suggest corrective actions, and reflect his/her findings in the EMP compliance verification reports.

432. Quality assurance (QA) /quality control (QC) for environmental monitoring. To ensure monitoring accuracy , the QA/QC procedure will be conducted in accordance with the following regulations:

i) Regulations of QA/AC Management for Environmental Monitoring issued by SEPA in July 2006; ii) QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre in 2001; and iii) QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre in 2001.

312. The standard monitoring methods required by these manuals are listed in Table IX.6.

Table IX.6: Standard Monitoring Methods of Ambient Air, Noise and Water

137 Media Monitoring Parameter Method (Standard No.)

TSP (mg/m3) Gravimetric (GB/T15432-1995) 3 PM10 (mg/m ) Gravimetric with specific sampler (HJ/T93-2003) Air 3 SO2 (mg/m ) Spectrophotometry (GB/T15262-1994) NOx (mg/m3) Saltzman Method (GB/T15435-1995) Equivalent Continuous A Sound Noise Acoustimeter Method (GB12524-90) (Leq) pH value Glass electrode method (GB6920-86)

CODMn (mg/L) Permanganate index (GB11914-89) Surface water Petroleum (mg/L) Infrared spectra photograph (GB/T16488-1996) SS (mg/L) Gravimetric method (GB11901-89) Total coliforms (no./L) Membrane filter (GB/T575.12-2006)

433. The results/data of environmental inspection and monitoring activities will be used to assess: (i) the extent and severity of actual environmental impacts against the predicted impacts and baseline before the project implementation; (ii) performance or effectiveness of environmental mitigation measures or compliance with pertinent environmental rules and regulations; (iii) trends in impacts; (iv) overall effectiveness of EMP implementation; and (v) the need for additional mitigation measures and corrective actions if non-compliance is observed.

H. Mitigation Measures and Monitoring Costs

434. The costs of implementing the environmental management and impact mitigation measures listed in the EMP matrix (Table IX.2) are shown in Table IX. 7 below. The cost for environmental management and impact mitigation measures are listed against line items in the EMP matrix (Table IX.2) and broken down into county/district/city contributions according to subprojects. Environmental monitoring costs are also included in the table. Construction monitoring and project acceptance inspections total 3.157 million RMB and operational environmental monitoring (internal and external) is a recurrent cost of 2.69 million RMB per year. These are to be included in the construction contracts and counterpart budgets. It should be noted that the IAs will pay for (external) environmental effect monitoring carried out by licensed EMCs. During implementation, the cost required can be adjusted based on actual requirements. If there are unpredictable environmental impacts found during the implementation of the environmental monitoring, EIA and EMP should be updated in timely manner and mitigation measures will be put forward to reduce the impacts to the environment.

435. The IAs will bear all monitoring costs and will ensure the necessary budgets are available for the EMCs. Internal monitoring costs will be borne by the IAs and contractors during construction and by the IAs during operation. Before implementing a monitoring plan, the IAs‘ EMUs, supported by the LIEC, will present a more detailed breakdown of the estimated budget. During sub-component implementation, the budgets will be adjusted based on actual requirements.

436. Contractors will bear the costs for all mitigation measures during construction, which will be included in the tender and contract documents. The IAs will bear the costs related to mitigation measures during operation and the costs related to environmental supervision during construction and operation. The Project as a whole will bear the costs for training and

138 the Loan Implementation Environment Consultant. Training programs budget will be included in the construction and operation contracts. During the operation phase the training budget will be included in the operation and maintenance budget.

139 Table IX.7: Cost Estimates for Environmental Management Plan (CNY x 106) EMP Item Group SB* WTS GZ HS HR XM FX Total Pre-construction 1.1 Environmental impact assessmenta 0.45 0.35 0.35 0.35 0.35 0.35 0.2 2.4 1.2 Environmental traininga 0.425 0.275 0.275 0.275 0.275 0.275 0.275 2.2 Sub total 0.875 0.625 0.625 0.625 0.625 0.625 0.475 4.6

Construction 2.2 Wastewater management (construction wastewater and construction a 0.5 0.2 0.1 0.04 0.08 0.05 n/a 0.97 camp effluent) 2.2 Air pollution control 3.9 0.25 0.42a 0.23 0.1 0.21 0.02 5.13 2.3 Noise control 0.6a 0.25a 0.6a 0.25 0.05 0.03 0.3 2.08 2.4 Solid waste management 1.2 0.1 0.04a 0.065 0.07 0.02 0.21b 1.705 2.5 Erosion control (construction site, borrow pits and spoil disposal) 16 0.47 2a 1a 0.2a 0.2 0.1 19.97 2.5 Landscaping/revegetation 2 0.093 1.5a 1.5 0.35a 0.75 n/a 6.193 2.6 Traffic management (diversions, signage) 0.2a 0.02a 0.05a 0.06 0.1a 0.025 0.02 0.475 2.6 Community safety 1.5a 0.1a 0.15a 0.2 0.2a 0.075 0.1 2.325 Construction monitoring and project acceptance inspections 0.82a 0.23 0.34a 0.21 0.397 0.62 0.54 3.157

Operation (Capital Costs) 3.2 Air quality 1 0.1 0.8a 0.4 0.1a 0.4 n/a 2.8 3.3 Noise control 2.98ac 0.512 0.4ac 0.99 2.13 0.2 n/a 7.212c 3.6 Hazard management and emergency preparedness 0.9a 0.1 0.4a 0.2 0.1a 0.2 n/a 1.9 3.7 Environmental training 0.2a 0.1a 0.1a 0.2 0.1a 0.2 n/a 0.9 Sub total 31.8c 2.525 6.9c 5.345 3.977 2.98 1.29 54.817c

Operation (Ongoing costs (spread over first 3 years of operations)) Vegetation maintenance 0.6a .015a 0.3a 0.15 0.15 0.15 n/a 1.365 Operational Environmental monitoring – Internal and external 1.5 0.3 0.4a 0.21 0.08 0.2 n/a 2.69 Sub total (Ongoing costs) 2.1 0.45 0.7 0.36 0.23 0.35 0 4.055 EMP = environmental management plan, SB = Shenbei, WTS = Waitoushan, GZ = Gaizhou, HS = Heishan, HR = Huanren, XM = Xinmin, FX = Fuxin, n/a = not applicable. All figures are from the local environmental impact assessment documents and feasibility study reports except where noted. * Environmental management costs for Shenbei roads and waste water treatment plants are combined. a Estimates based upon scale and nature of proposed works. b Includes 200,000 RMB for asbestos and fly ash assessment c Will change as a result of additional predictive noise modelling for Shenbei and Gaizhou roads, as required by loan assurance (iv). Source: PRC EIA documents

140

I. Consultation, Participation and Information Disclosure

1. Consultation during Project Preparation

437. Meaningful consultation was conducted during project preparation. The consultation process and its outcome are described in Chapter VI of this CEIA. Direct public participation was conducted as an ongoing element in the development of the sub-components. These activities were carried out by the IAs in their preparation of the FSRs and EIAs and by the Technical Assistance (TA) Consultants following PRC National Environmental Impact Assessments Technical Guidelines and Asian Development Bank guidelines and the Safeguard Policy Statement (2009).

2. Future Consultation Plan

438. Future plans for public involvement during the detailed design, construction and operation phases were developed during the project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the sub-components are completed.

439. Public participation plans are part of the project implementation and management plan. The IAs are responsible for public participation during project implementation. Costs for public participation activities during construction are included in the project funding. The unit costs are estimated as CNY 20,000 ($3,333) for each public investigation on a particular issue, CNY5,000 ($833) for each public workshop, and CNY6,000 ($1,000) for each press conference. The IAs will cover costs for public participation activities during operation.

Table IX.8: Consultation and Participation Plan Organizer Approach Times/Frequency Subjects Participants Project preparation EIA Questionnaires During field work Project priority, Residents within preparation and interviews for EIA effects, subproject authors attitudes to the areas and (Institutes) Project/components, construction and suggestions area TA Site visits, and Two rounds of Comments and Representatives Consultants, public formal recommendations of of affected ADB consultations consultation affected people and people and stakeholders stakeholder agencies TA Establish Ongoing Pathway for Affected Consultants, Grievance complaints from and persons, AP and Redress resolution of representatives SpPMOs Mechanism environmental and other arrangements problems in stakeholders in each county construction and operation Construction IAs, Public At least once a Adjusting mitigation Work staff SpPMOs consultation year measures if within and site visits necessary, construction construction area; Residents impacts, within comments and construction

141 Organizer Approach Times/Frequency Subjects Participants suggestions area Expert As needed, based Comments and Experts from workshop or on public suggestions on various sectors, press consultation mitigation media conference measures, public opinions; adjusting mitigation measures accordingly

Public At least once a Adjusting mitigation Representatives workshop year measures if of residents and necessary, social sectors construction impacts, comments and suggestions Test Operation SpPMOs, Site visits Multiple, Comments and Local residents IAs, depending on suggestions on and social Operators results of Project operational impacts, sectors, EPBs completion public suggestions environmental on corrective audit actions

Operation IAs Public At least once Effects of mitigation Residents consultation measures, impacts adjacent to and site visits of operation, project sites comments and suggestions Public As needed based Effects of mitigation Representatives workshop on public measures, impacts of residents and consultation of operation, social sectors comments and suggestions Public At least once Comments and Project satisfaction suggestions beneficiaries survey EIA = Environmental Impact Assessment, IA = Implementing Agency, SpPMO = Subproject Project Management Office, TA = Technical Assistance. Source: PMO

J. Institutional Strengthening and Training

440. It was recognized during project preparation and at inception that the Project is addressing townships that have limited capacity for sustainable environmental management. While the larger PRC cities that have, for the most part, much longer and extensive experience with proposed project interventions in urban roads, waste water management, and heating, the smaller cities need assistance to meet the challenge posed by these developments. To ensure effective implementation of the EMP, the capacity of the PMO, implementing agencies, CSCs and contractors must be strengthened, and all parties involved in mitigation measures and monitoring of environmental performance must have an understanding of the goals, methods, and practices of project environmental management. It is apparent that the IAs and local EPBs carry a substantial responsibility and workload if they are to ensure the environmental soundness of their components. The largest part of the

142 capacity building in environmental management has therefore been in this direction. During the course of the TA, IAs and their EIA Institutes have been assisted in EIA preparation through written critiques of their EIA drafts, training sessions, and workshops where specific environmental issues were examined. The IAs, contractors and operators will also be strengthened by environmental management training

441. The Liaoning EPB, local EPBs and LIEC shall offer EMP training that is specific to their roles for the project. However, the main training emphasis (>50% of training budget) will be to ensure that contractors are well versed in environmentally sound practices and are able to undertake all construction with the appropriate environmental safeguards. The institutional strengthening and training program is summarized in Table IX.9.

442. Supervisory staff in the SpPMOs, IAs (including EMUs), operators, local EPBs and contractors will receive training in environmental management, environmental monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental management techniques. The IAs and local EPBs will be offered EMP training that is specific to their roles on the Project. However, the main training emphasis (>50% of training budget) will be to ensure that contractors are well versed in environmentally sound practices and are able to undertake all construction with the appropriate environmental safeguards (see Table IX.9 below).

443. Funding of this training will be included in the Project budget and in the operation and maintenance budgets during operation phase. The estimated costs for the institutional strengthening and training are shown for each subproject administration at Items 1.2 (Pre- construction) and 3.7 (Operation) of Table IX.7.

143 Table IX.9: Institutional Strengthening and Training Capacity Building Organization Contents Timing CB1 Environmental SpPMOs, IAs Establishment of EMU Prior and during Management Project Capacity implementation CB2 PPMO, SpPMOs Contracting and working Prior and during with Loan Implementation Project Consultant (LIEC) and implementation external environment expert (EEE) CB3 PPMO, SpPMOs, IAs Establishment of PPCU. Prior and during Development and Project implementation of GRM implementation CB4 SpPMOs and IAs Developing bidding Prior and during documents which Project incorporate the provisions implementation of the EMP CB5 IAs Contracting and working Prior and during with CSCs and EMCs Project implementation Training Attendees Contents Timing T1 Environmental laws, PPMO, SpPMOs, (i) Environmental laws and Prior to Project regulations and IAs/Operators, regulations implementation policies Contractors (ii) Environmental policies and plans (incl. ADB SPS) (iii) Basic environmental management (iv) Emergency preparedness and response T2 EMP implementation PPMO, SpPMOs, IAs, (i) Responsibility and Prior and during Contractors duties for the project Project construction, management implementation and environmental protection (ii) Task of environmental protection in the project construction (iii) Key environmental protection contents etc. in project construction (iv) Various environmental reporting (v) EMP improvement and corrective actions T3 Traffic management Road subproject IAs (i) Selecting haulage Prior to and during and contractors routes Project (ii) Diverting traffic implementation (iii) Scheduling work periods with community needs T4 Environmental PPMO, SpPMOs, IAs EHS for the construction of Prior to and during Health and safety and contractors subprojects: Project (i) Protective practices and implementation equipment (ii) Safe working environments

144 (iii) Community safety T5 GRM PPMO, SpPMOs, (i) GRM structure, Prior to Project Implementation PPCU, GRM access responsibilities, timeframe implementation points (ii) Types of grievances, eligibility assessment (iii) Gender responsive GRM (iv) Reporting procedures. T6 Crisis handling IAs/Operators, (i) Crisis handling methods Prior to Project contractors (ii) Environmental accident, implementation crisis and mitigation measures; (iii) Emergency response team, procedure and actions Sub-total CNY 2.2 million (see Item 1.2 in Table IX.7)

T7 Environmental IAs and facility EHS for the operation of Prior to and during Health and safety operators subprojects: Project (i) Protective practices and implementation equipment (ii) Safe working environments (iii) Community safety T8 Environmental IAs/operators, (i) Environmental Prior to and during aspects of WWTP ―housekeeping‖ Project operation and (ii) Safety operation implementation maintenance regulations (iii) Operation of overflow holding tank (iv) Emergency preparedness and response procedures T9 Environmental IAs/operators, (i) Monitoring and Prior to Project monitoring, contractors, local inspection methods, data implementation inspection and EPBs, EMCs collection and processing, reporting interpretation of data, reporting system (ii) Environmental reporting requirements Sub-total CNY 0.9 million (see Item 3.7 in Table IX.7) Total CNY 3.1 million EPB = Environment Protection Bureau, IA = Implementing Agency, PMO = Project Management Office Source: PMO

K. Reporting and Supervision

444. Monthly reporting. The Subproject PMOs (SpPMOs) will collect environmental monitoring data and reports from the IAs, EMCs, and CSCs that are responsible for supervising the contractors‘ implementation of mitigation measures. The data will be incorporated into monthly subproject progress reports. The reports will present: (i) project implementation status; (ii) environmental mitigation measures implemented; (iii) monitoring activities; (iv) monitoring data of air, noise and surface water; (v) analysis of monitoring data

145 against relevant standards; (vi) violations of environmental regulations; (vii) any additional mitigation measures and corrective actions required; (viii) environmental training conducted; (ix) occupational health and safety reporting (e.g. accidents during construction); (x) major events or issues that happened during the reporting period and follow-up actions needed; and (xi) complaints received from the public and how these were resolved through the GRM. The monthly reports will be passed on to the local EPBs.

445. Semi-annual environmental monitoring report. Each Subproject PMO will consolidate their monthly reports and submit a semi-annual report of subproject performance to the PPMO. The PPMO will consolidate all the semi-annual subproject reports into a semi- annual environmental monitoring report and submit this to the ADB. The LIEC will help prepare the report. The report should describe the project‘s compliance with the EMP and PRC legislated standards, identify any environment-related implementation issues and necessary corrective actions.

446. External EMP compliance verification report. The external environment expert (EEE) will review all reports, including internal and external monitoring reports and the semi- annual environment monitoring report, and prepare a semi-annual external EMP compliance verification report. The report should confirm the project‘s compliance with the EMP and PRC legislated standards, identify any environment-related implementation issues and necessary corrective actions. The EEE will send the report to the PPMO, the IAs and ADB.

447. Report of environmental acceptance monitoring and audit. No later than a month after completion of the construction work for each subproject, the IAs shall collect data/reports from all contractors and CSCs, and submit construction mitigation completion reports to the Subproject PMOs and local EPB. The reports will indicate the timing, extent, and effectiveness of completed mitigation and maintenance, as well as point out the needs for further mitigation measures and monitoring during operations. Moreover, within two months after project completion, environmental acceptance monitoring and audit reports of subproject completions will be (i) prepared in accordance with the PRC Regulation on Environmental Check-and-Acceptance of Project Completion (State Environmental Protection Agency, 2001); (ii) reviewed for approval by the Liaoning Provincial EPB, and (iii) finally reported to ADB by the PPMO.

448. Besides reviewing the semiannual environment monitoring reports from the PPMO and the semiannual EMP compliance verification reports from the EEE, ADB missions will inspect the project progress and implementation on site at least once a year. For environmental issues, inspections will focus mainly on (i) monitoring data; (ii) the implementation status of project performance indicators specified in the loan documents for the environment, environmental compliance, implementation of the EMP, and environmental institutional strengthening and training; (iii) the environmental performance of contractors, LIEC, and the IAs; and (iv) operation and performance of the project GRM. The performance of the contractors with respect to environmental protection and impact mitigation will be recorded and will be considered in future loan bid evaluations. The defined reporting plan is in line with OM Section F1/OP, which defines in para 27 that ―The project team ensures that the borrower/client submits the following monitoring reports to ADB for review: (i) semiannual reports during project construction, and annual reports during project operation for environment category A projects‖.

146 Table IX.10: Reporting Plan Reports From To Frequency of reporting Construction Phase Internal Internal monitoring reports by Contractors IAs Monthly monitoring construction contractors and Monthly internal monitoring reports IAs SpPMOs Monthly inspection by IAs and Local EPBs Semi-annual internal environmental SpPMOs PPMO Twice a year monitoring and inspection reports based on the monthly reports External Semi-annual external environmental EMCs on Local Quarterly environment monitoring reports behalf of EPBs, effect local EPBs SpPMOs monitoring (funded by and IAs) PPMO Semi-annual Semi-annual environment PPMO, LIEC ADB Twice a year environment monitoring reports consolidating all monitoring the internal and external reports reports EMP Verification Reports of EMP EEE ADB, Twice a year compliance compliance PPMO, verification IAs

Operation Internal Routine environmental monitoring IAs/Operator Local Monthly monitoring reports s EPBs and SpPMOs External Semi-annual external environmental EMCs on Local Quarterly environment monitoring reports behalf of EPBs, effect local EPBs SpPMOs monitoring (funded by and operators) PPMO Annual Semi-annual environment PPMO, LIEC ADB Yearly for 3 environment monitoring reports consolidating all years following monitoring the internal and external reports commencement reports of operation) EMP Verification Reports of EMP EEE ADB, Yearly for first compliance compliance PPMO, year of verification IAs operation

ADB = Asian Development Bank, EMC = Environmental Monitoring Centers, EPB = Environment Protection Bureau, IA = Implementing Agency, PPMO = Provincial Project Management Office, SpPMO = Subproject Project Management Office.

L. Mechanism for Feedback and Adjustment

449. The effectiveness of mitigation measures and monitoring plans will be evaluated by a feedback reporting system. Adjustment to the EMP will be made, if necessary. The SpPMOs will play a critical role in the feedback and adjustment mechanism.

450. If during inspection and monitoring, substantial deviation from the EMP is observed or any changes are made to a subproject that may cause substantial adverse environmental impacts or increase the number of affected people, then the SpPMO should consult with the local EPB and ADB immediately and form an environmental assessment team to conduct

147 additional environmental assessment and, if necessary, further public consultation. The revised EIA reports including a revised EMP should be submitted to the environment authorities for approval, and finally reported to ADB. The revised EMP will be passed to the contractor(s) and the IA for implementation. The mechanism for feedback and adjustment of the EMP is shown in Figure IX.1.

PPMO, SpPMOs ADB

Local EPBs

IAs LIEC, EEE

CSC

Contractor IAs’ EMU

Implementation Feedback Comments and suggestions

Implementation of Mitigation Measures and Monitoring Programs

Figure IX.1: Mechanisms for Feedback and Adjustment of EMP

148 X. CONCLUSIONS AND RECOMMENDATIONS

451. The Project has been planned to assist the project beneficiaries of the counties, districts and cities around Shenyang to raise their standard of living and economic prospects by the provision of essential urban and peri-urban infrastructure. The infrastructure subcomponents have also been selected and designed to provide significant environmental and socio-economic benefits for the target counties, districts and cities.

452. The potential environmental impacts arising from the implementation of the Project have been identified in eight individual EIAs and their findings integrated in this Consolidated EIA. During the feasibility and design phases of the subcomponents, many potentially significant impacts have been addressed by design features and operating regimes which avoid or minimize negative environmental effects. Construction impacts exist, but these are of a temporary nature and are covered by stringent site management and procedural provisions in the EMP. Finally, the monitoring of subcomponents in the construction and operational phases will check that the environmental performance of the Project remains high.

A. Environmental Assessment Findings

453. All components will support approved development master plans. New roads, sewerage and wastewater treatment plants, and centralized heating facilities are planned components in these plans and are documented in the FSRs. The Project will improve the conditions of infrastructure and public amenities in the participating counties, districts and cities. It is supportive of ADB's Country Strategy for the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability.

454. The improved wastewater disposal systems will result in cleaner and healthier living environment for town residents; elimination of occasional backflow of wastewater into buildings in some areas, and reduced contamination of local rivers. Improved road networks will reduce traffic congestion, improve road safety conditions, and facilitate the movement of residents. Improved and expanded heating systems will result in energy savings, reduced air pollution, and reduced heating costs for those currently dependent on coal fires.

455. The project components (urban roads and alleys, wastewater treatment plants and sewer networks, district heating network and heat exchange stations) are generally small to medium scale. The subprojects are located in urban and peri-urban areas and not in or near sensitive or legally protected areas. The project is not expected to destroy natural habitat or lead to loss of biodiversity or environmental services. The majority of water bodies in the project area have been canalized with concrete banks and bed. In the urban areas these have very low water quality and minimal in-stream ecology.

456. During construction, potential impacts include soil erosion, noise and vibration, fugitive dust, solid wastes, and community and occupational health and safety risks. Overall, construction-related impacts are localized, short term, and can be effectively mitigated through the application of good construction and housekeeping practices and implementation of construction phase community and occupational health and safety plans. Construction activities at one site border on the site of a cultural relic and, although construction will not encroach on the site or its curtilage, special attention will be paid and strict procedures followed so that no off-site impacts arise and any unexpected finds can be identified and protected if they are discovered during construction.

457. During operation, improved road networks will reduce traffic congestion, improve

149 road safety conditions, and facilitate the movement of residents. The potential for new roads to open up areas for unplanned development or exploitation has been addressed by designing road subcomponents in connectivity networks to rationalize rather than increasing traffic. Land use planning and development controls will respond to monitored traffic emissions and noise levels.

458. The operation of the new WWTP will discharge high quality of treated effluent and will contribute substantially to the clean-up of receiving water bodies. Additionally, the development of the new WWTP will occasion the closure and rehabilitation of currently used, environmentally unsound sewerage treatment arrangements. In the operational phase of the WWTP subcomponent, sludge treatment and beneficial utilization will be implemented, as well as odor control.

459. The heating subproject, providing pipes to new areas, will provide centralized heating to apartment blocks which will re-house the occupants of substandard flatted areas. The new system will replace old, inefficient and polluting small local boilers resulting in net reductions in all emission levels. It will also contribute to the phasing out of the domestic use of multiple small coal stoves for heating, again with net savings in emissions.

B. Environmental Health and Safety

460. This consideration combined occupational health and safety of staff/workers at the subprojects and community health and safety of people living nearby or potentially affected by failures or poor operation of facilities. The project activities‘ potential impacts on community and occupational health and safety were analyzed and corresponding mitigation measures have been proposed in the CEIA. These include (i) construction management to avoid nuisance and danger to the community; (ii) emergency response planning; and (iii) training and awareness programs for community (e.g. road safety in schools) and facility operating staff. Emergency response mechanisms to deal with dangerous or hazardous material spills due to traffic accidents will be established by the implementing agencies of all road subprojects, and trained emergency response teams set up before project implementation.

C. Resettlement and Economic Displacement

461. Resettlement Plans ((RP) - one for each county, district and city) address the relocation and compensation needs of the 1,334 affected households and have identified compensation and resettlement site options. A total of 2,584 people in 792 households will be resettled due to the loss of residential buildings. A further 1,832 people in 542 households will be affected by land or asset losses. Detailed information will be collected for each site and the county governments will revise the draft RPs based on the physical indices survey and include details of the resettlement sites, location, number of affected households, and number of affected persons, land areas, and infrastructure plans. The RPs will be implemented in accordance with all applicable PRC laws and regulations, and ADB‘s Safeguard Policy Statement 2009.

462. The main economic displacement impacts identified in the subproject EIAs are: (i) Part-time staff at the 15 small local boilers in Fuxin; and (ii) Caretaker at existing WWTP facility at Qingshuitai. The caretakers at the heating plants will be retained at the same employment rates by the parent companies. The PMO has advised that the caretaker at the existing WWTP will be provided with employment in the new plant. These impacts and planned offsetting measures are examined in the Project‘s Social Action Plan.

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D. Climate Change

463. Climate change issues have been addressed by the Project. In total, the Project‘s subcomponents will achieve a net reduction of greenhouse gas emissions of up to 121,000 t/year of CO2e in the operational period. This is mainly achieved by fuel savings from the roads component and the replacement of polluting equipment in the heating component. The subcomponents have been designed with climate change adaptation features.

E. Risks and Assurances

464. The majority of environmental risks relate to design features and operational plans which will avoid or mitigate impacts, but which rely on the IAs‘ commitment and capacity to implement and consistently follow-up. The remainder relate to the likelihood of unexpected negative impacts.

465. The risks are listed in Table X.1 under each subproject sector. Because of the multitude of subprojects and the spread over different jurisdictions with different capacity levels, the list of potential risks is necessarily long. It should be noted that these risks do not pertain to every subcomponent.

Table X.1: Environment related Project Risks Roads and Spoil disposal will be unplanned and will occasion unacceptable environmental Pipelines impacts. Sewage and stormwater conducted in pipes along roadways will not be appropriately managed before discharge. The IAs and operators of road networks will not develop appropriate Emergency Preparedness and Response mechanisms. Inadequate noise predictive modeling in the Shenbei and Gaizhou road EIAs will result in inadequate budgeting for mitigation measures in the operational period. Wastewater Weaknesses in plant management may result in: Treatment  Poor maintenance and breakdowns  Low quality of treated water to irrigation  Improper sludge disposal The IA will fail to safely rehabilitate existing settlement and oxidation pond. Sludge utilization through composting and agricultural applications will not be implemented or properly acted upon. Caretaker at existing WWTP facility at Qingshuitai will suffer economic displacement when plant closes. Heating Deconstruction of replaced small boilers will be undertaken without environmental safeguards or safe handling and disposal of waste – especially with regard to the identification, handling and disposal of hazardous material (ACM and ash). Disposal of old household heating stoves will be undertaken without safe handling and disposal of waste. Caretakers at the 15 local boilers to be demolished may suffer economic displacement.

466. The following assurances, addressing the risks identified above, should be incorporated into the loan documentation as loan covenants to ensure that the measures are implemented in a timely and complete fashion:

(i) A commitment that surplus spoil should be transported to suitable spoil disposal sites approved by the EPB;

151 (ii) A commitment that sewage and stormwater conducted in pipes along roadways will be appropriately managed before discharge (as stated in EMP);

(iii) A commitment that the IAs and operators of road networks will develop appropriate Emergency Preparedness and Response mechanisms;

(iv) A commitment that before construction commences on Shenbei and Gaizhou road subprojects, a full predictive analysis of sensitive receptor sites along all roads will be carried out and funds for noise mitigation at affected properties will be reserved;

(v) A commitment from Liaoning government and the Shenbei New Area administration to adequately resource, train and support management and operational staff of WWTP in environmental awareness and environmental management skills (The TA has designed and scoped a capacity building program to support this);

(vi) A commitment from Liaoning government and the Shenbei New Area administration for the preparation and implementation of a time-bound closure and rehabilitation plan for the existing WWTP;

(vii) A commitment from Liaoning government and the Shenbei New Area administration to implement the treatment and utilization of WWTP sludge for composting and agricultural use;

(viii) The demolition of replaced small local boilers need to have approved EIAs and the demolition activities undertaken in compliance with standards for occupational health and safety and disposal of demolition wastes – especially with regard to the identification, handling and disposal of any hazardous material (ACM and ash);

(ix) Part time staff at the 15 small local boilers in Fuxin will be retained at the same employment rates by the parent companies; Caretaker at existing WWTP facility at Qingshuitai will be provided with employment in the new plant;

467. An additional assurance, in order to comply with SPS 2009 on GHG emissions, is for that portion of the operation of the Fuxin CHP plant corresponding to the heat used in the Fuxin (Sihe) heating subproject be annually quantified and monitored in accordance with internationally recognized methodologies for three years of the operations period. This should be undertaken by the CHP operators under the supervision of the Fuxin Subproject PMO. The monitoring should be funded by the subproject IA, and the Fuxin Subproject PMO will submit reports to the Provincial PMO to be included in its six-monthly reports to ADB.

468. The Liaoning Government and the subproject counties and districts will undertake the full range of effective measures set out in the EIAs and EMPs to guarantee that the environmental management requirements and the environmental monitoring plan will be implemented effectively during project implementation, and that the implementation reports of the environmental management and monitoring plan in accordance with ADB requirements will be submitted in a timely fashion. Part of this monitoring and management commitment will be a commitment to implement and maintain an appropriate Grievance Redress Mechanism (GRM) for all subproject counties and districts and covering the construction and operation of all project subprojects.

469. A Loan Implementation Environmental Consultant (LIEC) will be commissioned for the project loan implementation phase. The LIEC will have an important role in coordinating these activities. The LIEC will also assist in interpreting and clarifying the application of mitigation measures and the monitoring of their outcomes. In addition, an external environment expert (EEE) will be contracted to verify the project‘s compliance with the

152 updated project EMP, and identify corrective actions, as necessary.

F. Use of Irreplaceable Resources

470. No rare, threatened, or protected species have been recorded at the project sites, and biodiversity values of the region will be unaffected. Construction activities at one site in a road subproject in Xinmin border on the site of a cultural relic and, although construction will not encroach on the site or its curtilage, special safeguards will be implemented.

G. Follow-Up Monitoring and Environmental Management Requirements

471. An EMP has been developed for the design, construction, and operation phases of the Project. The plan is appropriate for the environmental safeguarding of the planned works and forms part of a comprehensive set of environmental management documents. The EMP includes institutional responsibilities and costs for implementing the mitigation measures and the monitoring requirements.

H. Conclusion

472. It is concluded that the infrastructure subcomponents planned for the seven counties and districts will significantly benefit the populations of these areas, including the poor and vulnerable. It is also concluded that the design features and operational planning will minimize adverse environmental impacts and that the implementation of these features will be assured through loan assurances. It is further concluded that the design features, operational regimes and construction management safeguards will successfully address the range of potential environmental impacts and will be actioned through the Project EMP and continuously checked in the environmental monitoring program.

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APPENDIX 1. REFERENCES

Documents and Reports ADB. 2009. Safeguard Policy Statement . Manila. ADB. 2003. Environmental Considerations in ADB Operations. Operations Manual . Manila. ADB. 2006. Operations Manual . Section F1/BP. Manila. ADB. 2010. Country Partnership Strategy (2010–2015): People’s Republic of China. Manila. ADB 2008, Strategy 2020, The Long-Term Strategic Framework of the Asian Development Bank 2008-2020 . Manila. ADB 2008, Climate Change Fund: Implementation Guidelines, 5. ADB. 2009. Liaoning Small Cities and Towns Development Demonstration Sector Project. Manila. 2006 IPCC Guidelines for National Greenhouse Gas Inventories. IFC/World Bank Group 2007, Environmental, Health, and Safety Guidelines Water and Sanitation , Washington. International Finance Corporation. 2007. World Bank Group Environmental, Health, and Safety Guidelines . http://www.ifc.org/ifcext/sustainability.nsf/Content/EHSGuidelines United Nations Framework Convention on Climate Change (UNFCCC). 2009. Unpublished. United Nations Framework Convention on Climate Change (UNFCCC). 2009. Bellagio Discussion Paper: Strategies for Bringing Land Transport into the Climate Change Negotiations . Unpublished. World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines , World Bank, Washington World Bank Group 2009, “Good Practice Note – Asbestos: Occupational and Community Health Issues.

Applicable Laws and Regulations

Government of the PRC. 1989. Environmental Protection Law of PRC . Beijing.

Government of the PRC. 2002. Culture Heritage Protection Law of PRC . Beijing.

Government of the PRC. 1996. Water Pollution Prevention Law of PRC . Beijing.

Government of the PRC. 2000. Air Pollution Prevention Law of PRC . Beijing.

Government of the PRC. 1999. Noise Pollution Control Law of PRC . Beijing.

Government of the PRC. 2005. Solid Waste Pollution Control Law of PRC . Beijing.

Government of the PRC. 2003. Environmental Impact Assessment Law of PRC . Beijing.

Government of the PRC. 1995. Solid Waste Pollution Prevention Law of PRC . Beijing.

A1-1 Government of the PRC. 2003. Culture Heritage Protection Regulation of PRC . Beijing.

Government of the PRC, State Environmental Protection Administration (SEPA). 2003. Environmental Protection Management Directories for Construction Projects (No. 9 ). Beijing.

Government of the PRC , State Council. 1998. Environmental Protection Management Regulations for Construction Projects . Beijing. Government of the PRC , Regulations of QA/AC Management for Environmental Monitoring issued by SEPA in July 2006

Guidelines and Standards

PRC Provision of Public Consultations for Environmental Impact Assessment. 2006. State Environmental Protection Administration .

Surface Water Quality Standard of PRC . (GB3838-2002).

Ambient Air Quality Standard of PRC. (GB3095-1996).

Groundwater Quality Standard of PRC. (GB/T14848-93)

Urban Environmental Noise Standard. (GB3096-93)

Soil Quality Standard of PRC. (GB15618-1995)

Emission Standard for Odor Pollutants of the PRC . (GB14554-93).

State Environmental Protection Administration (SEPA). Environmental Impact Assessment Technical Guideline (HJ/T2.1-2.3-93, HJ/T2.4-1995, HJ/T19-1997).

Integrated Emission Standard of Air Pollutants. (GB16297-1996).

Integrated Wastewater Discharge Standard. (GB8978-1996).

Municipal Sewer Discharge Standard. (CJ3082-1999).

Noise Limit of Construction Site Boundary. (GB12523-90).

Environmental Risk Assessment Technical Guideline for Construction Projects . (HJ/T169- 2004).

Code for Seismic Design of Highways . (JTJ044-89). National Master Plan for Public Emergency Preparedness and Response, released by the State Council on 8 January 2006.

QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre in 2001 QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre in 2001.

A1-2 APPENDIX 2. GREENHOUSE GAS SAVINGS

1. FUEL AND CO 2 SAVINGS ON PROJECT URBAN ROAD INFRASTRUCTURE SUB- COMPONENTS

Fuel Savings

During the feasibility study stage, the fuel consumption that will be generated by traffic using the proposed urban road components has been briefly analyzed. There are many factors that may affect the fuel consumption generated by the traffic on urban roads in this proposed Project; the two major one are as follows:

(1) The fuel economy of the vehicles – The structure and manufacturing process of the vehicles determine this; the vehicle design will determine the energy use of the vehicles as manufactured.

(2) The running status of the vehicles – The actual running environment and the driving skills of the drivers determine this; the road design and management will determine this, involving four major aspects: (i) road conditions; (ii) vehicle features; (iii) traffic condition; and (iv) regional factors.

(i) Road conditions: including geometrical characteristics (radius of horizontal curve, longitudinal slope, curvature, road width, lateral clearance and cross slope etc) and road surface characteristics (smoothness) in the city.

(ii) Vehicle features: physical features and running features (engine power, rev and vehicle weight etc.).

(iii) Traffic condition: the road service level, including motor vehicle flow, traffic composition, vehicle speed, non-motorized vehicle flow, pedestrians’ interference and transverse interference, which cause the vehicles to accelerate or decelerate; stopping frequency. It costs less fuel than on an expressway. According to research, the fuel consumed by one starting and stopping operation is equivalent to that consumed when the vehicle runs 180 m. When the road condition and traffic condition change, the fuel consumption will change too. For roads with favorable road condition (smoothness, road width, horizontal and vertical alignment, etc.) and traffic conditions (fast and slow vehicles use separate lanes, non-motorized vehicles are separated, there is less transverse interference etc.), vehicles tend to have stable running status, with relatively less fuel consumption. (iv) Regional factors: such as drivers’ behavior and speed limit etc

For the Project, the TA Consultants adopted ‘with and without project comparison’ to carry out preliminary estimation of the fuel consumption calculation after the Project is completed. ‘With project’ refers to the vehicle fuel consumption situation when the Project is completed; ‘without

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project’ refers to the vehicle fuel consumption situation without the proposed Project. The fuel consumption disparity is the fuel saved. The preliminary estimations were made according to these different situations: i) Fuel saved by the reduction of mileage and change of road condition; ii) Fuel saved by the improvement of crowded road and traffic condition; and iii) Fuel saved by the improvement of traffic condition caused by the upgrading of original roads.

The annual fuel consumption saved due to the 62 urban roads are shown in the following table, this calculation is based on the China’s National Response Plan to Climate Change and pilot provinces proposal report to compiled climate change, Which compiled by the national development and reform commission compiling in August 2010.

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Fuel consumption saved with project estimation for the 62 urban roads in Liaoning TA7621 Project (based on AADT 2030)

Number of AADT Annual fuel Subproject Construction Length Name Road component Road Class Nature of Road (annual average consumption daily traffic) F0 − Fn saved L/m l/car 100 km Q/ l 4300 58979 3.68 Q 9333 Jiefang street U major Rehabilitation 5792 22521 2.68 3496 Heishan Xingongye street U major New 6347 30781 3.68 7190 Bintie Road U major New 2805 12743 3.68 1315 Hunjiang Street U Secondary New 5100 27211 2.84 3941 Huanren Zhongxin Street U Secondary New 3100 23300 2.84 2051 Songbei Street U major New 1500 33938 4.15 2113 Waitoushan No.1 Road U branch Rehabilitation 900 16542 2.66 396 Qingshuitai Road 1 U branch New 1340 20541 3.55 977 Qingshuitai Road 2 U branch New 810 19483 3.55 560 Qingshuitai Road 3 U Secondary Rehabilitation 1350 39785 3.55 1907 Qingshuitai Road 4 U branch New 1344 18575 3.55 886 Shenbei/Qings huitai Town Qingshuitai Road 5 U branch New 1355 18880 3.55 908 Qingshuitai Road 6 U branch New 1000 18809 3.55 668 Qingshuitai Road 7 U branch Rehabilitation 1108 16914 2.66 499 Qingshuitai Road 8 U Secondary Rehabilitation 1147 39813 2.15 982 Qingshuitai Road 9 U branch New 1180 24050 3.55 1007 Xinglongtai Road 1 U Secondary New 562 19979 2.84 319 Shenbei/Xinglo ngtai Town Xinglongtai Road 2 U Secondary New 553 40075 2.84 629 Xinglongtai Road 3 U Secondary Rehabilitation 2312 20648 2.15 1026

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Number of AADT Annual fuel Subproject Construction Length Name Road component Road Class Nature of Road (annual average consumption daily traffic) F0 − Fn saved L/m l/car 100 km Q/ l Xinglongtai Road 4 U branch New 820 18622 3.55 Q 542 Xinglongtai Road 5 U Secondary New 620 18809 2.84 331 Xinglongtai Road 6 U Secondary Rehabilitation 709 19184 2.15 292 Xinglongtai Road 7 U Secondary New 851 16961 2.84 410 Xinglongtai Road 8 U Secondary New 921 39780 2.84 1041 Xinglongtai Road 9 U Secondary Rehabilitation 2392 24143 2.75 1588 Xinglongtai Road 10 U branch New 558 11307 3.55 224 Xinglongtai Road 11 U Secondary New 728 14670 2.84 303 Zhanqian avenue south section U major New 2160 25826 3.48 1941 West Ring street U branch New 2380 4568 2.66 289 Xinkaihe West street U branch New 4760 7165 2.66 907 Shigongmiao Street North Section U branch New 880 7044 2.66 165 Mosque East road U branch New 1040 17921 2.66 496 Gongren North street U branch New 1010 30145 2.66 810 Liaohe Avenue U major Rehabilitation 6600 37421 3.48 8595 Xinmin Zhanqian avenue middle section U major Rehabilitation 1780 41425 3.48 2566 Zhongxing East road U major Rehabilitation 1850 35755 3.48 2302 Southern suburbs Road U major Rehabilitation 1300 32177 2.15 899 Zhanqian East Road U Secondary Rehabilitation 470 14238 2.15 144 Yingbin south street U Secondary Rehabilitation 740 12519 2.15 199 East Ring street U Secondary Rehabilitation 1630 10220 2.15 358 Xinshi Street U Secondary Rehabilitation 520 16255 2.15 182 North Ring road U Secondary Rehabilitation 2420 24559 2.15 1278

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Number of AADT Annual fuel Subproject Construction Length Name Road component Road Class Nature of Road (annual average consumption daily traffic) F0 − Fn saved L/m l/car 100 km Q/ l Xinqu South road U Secondary Rehabilitation 820 29384 2.15 Q 518 102 National road U Secondary Rehabilitation 2550 13450 2.15 737 South Ring East Road U branch Rehabilitation 500 36117 3.55 641 Xinhua Road U branch Rehabilitation 860 10056 3.55 307 Xinhua East Road U branch Rehabilitation 920 9494 3.55 310 Guangming Road U branch Rehabilitation 640 3682 3.55 84 Mosque road U branch Rehabilitation 650 9620 3.55 222 Nanshi West Road U branch Rehabilitation 650 8279 3.55 191 Hubin West Road U branch Rehabilitation 670 4320 3.55 103 Minzu North street U branch Rehabilitation 780 11115 3.55 308 Changqing Road U branch Rehabilitation 680 6232 3.55 150 Gongren South street U branch Rehabilitation 1620 5391 3.55 310 Shifu Road U branch Rehabilitation 630 5369 3.55 120 Yingbin North street U branch Rehabilitation 440 12164 3.55 190 Minzu South street U branch Rehabilitation 810 7632 3.55 219 South Ring East Road U major Rehabilitation 680 7632 3.48 181 Beiyuan Road U branch Rehabilitation 540 4192 3.55 80 Mosque Road East section U branch Rehabilitation 340 10174 3.55 123

Yucai road U branch Rehabilitation 1320 11773 3.55 552

Total litres fuel saved = 26,065,015

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In the PRC, the class of unban road and municipal engineering are defined from their design standards in accordance with its function within the national and provincial network or within a city transportation planning.

Classification standard of urban roads in the PRC, applied to urban roads with its function. The road grade is based on the traffic levels expressed in equivalent “small passenger vehicles”. For the urban major road, the design traffic is estimated at 20 years. For urban secondary roads, the design traffic is estimated at 15 years. For urban branch roads, the design traffic is estimated at 10 years, the design traffic is suggested to be estimated according to the actual situation. In this report with a view to Liaoning’s past traffic data, the Project roads’ functions, the Urban and Rural Comprehensive Planning of Liaoning Province (2007-2020) and Liaoning GDP growth, the design traffic is estimated at 20 years for major roads, secondary roads, branch roads. For the local roads in small city and town is not to be estimated.

Urban road project in energy saving is mainly the fuel consumed, combined by traffic prediction calculation assessment.

(1) Fuel saving calculation on new roads

On new roads the fuel saving is, after the implementation of construction roads, the fuel quantity due to the fuel consumption of unit mileage reduction. The calculation method is: 365 10 −4 Q1 = (F0 − F1 )× Ln ×Qt × ×

Where Q1 is the annual fuel consumption saved (10,000 l) Q t is the number of AADT (annual average daily traffic) on 2035 F 0 is when without the Project, the average fuel consumed on the existing road (l/car 100 km), the value is estimated/submitted by the local traffic department (District/County).

F 1 is when with the Project, the average fuel consumed on the new road (l/car 100 km); the value refers to the results on similar road class and the Consultants’ experience.

L n is the road design length (km)

(2) Fuel saving calculation on existing high-class roads reduces congestion.

In the without Project condition, the existing road traffic is increasing, the average driving speed is reducing, and the times of stop and brake are increasing. After the implementation of the planned construction urban road, the original urban road traffic generates transfer, thereby reducing the existing road congestion, the unit increasing fuel no longer increases, and the driving condition is improving, thus greatly improving the fuel economy.

Construction projects relate to the original, urban road traffic generate transfer part, thereby reducing the existing road congestion; the unit use of fuel no longer increases, the driving conditions improve, thus greatly improving the fuel economy. The calculation method is:

365 10 −4 Q2 = (F0 − F1 )× Ln × Qt × ×

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Where Q2 is fuel saving quantity of congestion reduction (10,000 l/y) Q t is the number of AADT (annual average daily traffic) on 20 35 F 0 is when without the Project, the average fuel consumption on the existing road (l/car 100 km); the value is submitted by local traffic department (city/county). F1 is when with the Project, the average fuel consumption of the related road (l/car 100 km); the value refers to the results on similar road class and the Consultants’ experience. L n is the road design length (km)

For urban roads in this Project: (i) traffic projections are higher and are likely to be overestimated (since growth projections are from a combination of a regression analysis of GDP from 2000-2010 and the growth aspirations of the districts and counties’ 12th 5-Year Plans); (ii) the local roads will not cause significant increases in vehicle ownership or vehicle use in the vicinity – for two reasons: the majority of project roads are upgrades of existing roads in small city and town; and, the traffic growth predictions are based on optimistic city/county growth and development projections; (iii) the network of roads, or inter-urban road through the connectivity of project roads, will act more to rationalize and consolidate traffic flow on a district/county scale, rather than increase it. This is the objective of urban road planning and selection of all components.

The elements of project design and planned implementation address a range of climate change issues. In summary, the sub-components do not significantly contribute to greenhouse gases nor do they increase the region’s vulnerability to climate change effects.

CO 2 Savings

To calculate the CO 2 emission from a fuel the carbon content of the fuel must be multiplied with the ratio of molecular weight CO 2 (44 ) to the molecular weight Carbon.

12 -> 44 / 12 = 3.7

Carbon Dioxide emission can be calculated as: qCO2 = c f / h f CCO2 /C m (1) where qCO2 = specific CO 2 emission (CO 2/kWh) cf = specific carbon content in the fuel (kg C/kg fuel ) hf = specific energy content (kWh/kg fuel )

Cm = specific mass Carbon (kg/mol Carbon)

CCO2 = specific mass Carbon Dioxide (kg/mol CO 2)

Emissions of Carbon Dioxide – CO 2 – in the combustion of some common fuels are indicated in the table below.

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Specific Carbon Specific Energy Specific CO Fuel 2 Content Content Emission

kg C /kg fuel kWh/kg fuel kg CO2 /kWh

Coal (bituminous/anthracite) 0.75 7.5 0.37

Gasoline 0.9 12.5 0.27

Light Oil 0.7 11.7 0.26

Diesel 0.86 11.8 0.24

LPG – Liquid Petroleum Gas 0.82 12.3 0.24

Using the fuel savings calculated for the road subprojects and the methodology outlined above, the calculation of CO2 saved by the project is as follows:

26,065,015 litres fuel saved at 2030 AADT

1. Assume 2/3 petrol: 17,376,503 litres petrol = 13206142 kg petrol. This contains 11,885,528 kg C.

This converts to 43,976,454 kg CO 2

2. Assume 1/3 diesel: 8,688,251 litres diesel = 7471896 kg diesel. This contains 6,425,831 kg C.

This converts to 23,775,574 kg CO 2

Total Savings = 67,752,027 kg CO 2

Total Savings = 67,752 tons CO 2/annum (at AADT 2030)

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2. COAL AND CO 2 SAVINGS IN THE FUXIN DISTRICT HEATING SUBPROJECT

） （t CHP VS Small

Boiler Data coal t) coal CHP (t) (t) CHP (t) (TSP) (TSP) (t) (t) (TSP) (TSP) (t) emission emission Flue dust dust Flue Raw coal Raw Flue dust dust Flue baselien (t) (t) baselien baseline (t) (t) baseline reduction (t) (t) reduction reduction (t) (t) reduction reduction (t) (t) reduction Coal Saving Saving Coal Nox emission Nox emission Standard coal Standard SO2 emission SO2 emission SO2 emission Nox emission emission Nox CO2 emission emission CO2 emission CO2 (t) boiler small emission CO2 small boiler (t) (t) boiler small small boiler (t) (t) boiler small Raw Coal Raw consumption of of consumption consumption of of consumption Nox emission (t) (t) Nox emission (Standard coal t) t) coal (Standard SO2 emission (t) (t) SO2 emission Flu dust emission emission dust Flu emission baseline baseline emission Coal Saving (Raw (Raw Saving Coal reduction (t) (TSP) (TSP) (t) reduction Standard coal 50,904 71,380 101,579 72,440 21,536 30,199 23 325 302 120 854 734 181 5724 5543 126904 180594 53690 consumption (t)

Assumptions

Annual total heat consumption (GJ) 1,377,744 Calorific value of standard coal ( MJ/kg) 29

Calorific value of raw coal ( MJ/kg) 20.86656

CHP efficiency 92.5%

Small boiler efficiency (Small boiler and domestic stoves assumed to have the same efficiency 65% level) Calorific value of standard coal ( Kcal/kg) 7000

S content of CFB coal 0.20%

S content of small boiler 0.20%

SO2 emission coefficient 80%

CFB desulfurization efficiency 90%

N content of CFB coal 1.11%

N content of small boiler 1.11%

Nox conversion rate 38%

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CFB de-nitrification efficiency 80%

Ash content of CFB coal 21.13%

Ash content of small boiler 21.13%

Flue dust content of CFB boiler ash 90.00%

Flue dust content of small boiler ash 20.00%

CFB boiler dust removal efficiency 99%

Combustible content in flue dust 25%

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APPENDIX 3. CONDITIONAL APPROVAL OF FUXIN CHP PLANT

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INOFFICIAL TRANSLATION

FUXIN CITY ENVIRONMENTAL PROTECTION BUREAU

Letter in Reply to “Application for Assessment Conditions of Environmental Assessment of the Second Phase of Fuxin Power Plant Upgrade Project”.

To: Shenyang Environmental Science Research Institute,

We received the Application for Assessment Conditions of Environmental Assessment of the Second Phase of Fuxin Power Plant Upgrade Project from your Institute. Conditions of approval are as follows:

1. Enterprise noise assessment in the pollutant emission standards should comply with Industrial Enterprise Boundary Noise – Class III Standard (GB12348-90); air assessment should comply with Emission Standard for Air Pollutants of Thermal Power Plants (GB13223-1996) and the amendment of the State Environmental Protection Administration (1996) No. 942.

2. Surface water environmental quality should comply with Category IV standard of the Surface Water Quality Standard of PRC (GB3838-88) and Category V standard at nominated points in the city segment; environmental noise quality should comply with Class 1 and 3 standards of Urban Environmental Noise Standard (GB3096-93) at nominated monitoring points.

Plus the other standards and conditions listed in the EIA attachment guidelines.

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APPENDIX 4. SHENBEI NEW DISTRICT COMMITMENT LETTER FOR SLUDGE UTILIZATION

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INOFFICIAL TRANSLATION

Statement on Sludge Processing Scheme after the Commissioning of Two Waste Water Treatment Plants in Qingshuitai Town and Xinglongtai Town

DRC,

With the fast development of Shenbei New Town, the existing wastewater treatment facilities in Qingshuitai town and Xinglongtai town are not able to meet the regional planned demand, therefore Puhe New City management committee plans to establish one separate wastewater treatment plant in each town and makes the decision that Shenyang Shenbei Water Works is responsible for the project construction and operation management.

Our company will transport the sludge produced from the two WWTPs after their commissioning to Shenyang City Sludge Treatment Plant for desiccation and composting.

Hereby Description

Shenyang City Shenbei Water Works

Nov.12 th , 2011

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