SR12 Public Disclosure Authorized

CHINA

Public Disclosure Authorized COMBINED CYCLE GAS TURBINE THERMAL POWER PROJECT (P108516)

SAFEGUARDS DUE DILIGENCE REPORT

November 2007 Public Disclosure Authorized Public Disclosure Authorized

1 TABLE OF CONTENTS

3 Executive Summary Section A Environmental Assessment Procedures and Documentation 6 A.1 Overview 6 A.2 Huizhou CCGT Power Plant 6 A.3 Connected Facilities 8 Section B Environmental Assessment Issues 10 B.1 Nitrogen Oxide (NOx) Emissions and Air Quality 10 B.2 Thermal Plume Monitoring and Modeling 11 B.3 Daya Bay Water Quality Classification and Ecological Zoning 12 Section C Natural Habitats 13 Section D Resettlement 14

Annex 1 Environmental Assessment Procedures and Documentation 20 Annex 2 Environmental Management Plan (EMP) 23 Annex 3 Public Consultations for the Huizhou CCGT Power Plant 27 Annex 4 Confirmation Letter on the Safety Measures and Designs by the 32 National Safety Production and Supervision Bureau (In Chinese) Annex 5 Safety Standards Used for the Huizhou Power Plant 33 Annex 6 Standards for Safety, Health, Environmental Risk, and Emergency 36 Situations Annex 7 Standard of Management for Control of Emergency Plan and 37 Response (In Chinese) Annex 8 SEPA Approval of LNG Terminal and Gas Pipeline (In Chinese) 50 Annex 9 Approval of LNG Terminal and Pipeline Design (In Chinese) 54 Annex 10 LNG Terminal and Regasification Plant - Cover Pages for the 65 Emergency Response Plan (In Chinese) Annex 11 Sample Inspection Records for the LNG Pipeline 66 Annex 12 Approval Letter for the 220 kV Transmission Line (In Chinese) 68 Annex 13 Map of Daya Bay Ecological Core Zones and CCGT Thermal 70 Plume Characteristics

2 WORLD BANK SAFEGUARDS DUE DILIGENCE REORT

EXECUTIVE SUMMARY

Background information

As the trustee of the Netherlands Clean Development Mechanism Facility (NCDMF), the World Bank intends to purchase Certified Emission Reductions (CERs) to be generated by the Huizhou Gas-fired Combined Cycle Thermal Power Plant from 2008 to 2012. The exact amount of CERs eligible for purchase and the price of CERs will be defined in an Emission Reduction Purchase Agreement (ERPA) to be negotiated and signed between the Huizhou LNG Power Company Limited (GHLPCL), the plant owner, and the Bank, on behalf of the NCDMF. ERPA payments will be made annually based on verification of actual CERs by a Designated Operational Entity (DOE), an independent technical expert, accredited by the Executive Board which supervises the CDM for UNFCCC Parties. The World Bank’s role is limited to purchasing emission reduction credits created by the project.

The Huizhou Gas-fired CCGT Power Plant comprises of three combined cycle units. At International Standards Organization (ISO) conditions, the total installed capacity is 1,170 MW (3 x 390 MW). Based on gas availability, the latest estimates of annual electricity generation is 3,674 GWh. The electricity generated by the plant is delivered to the Southern Power Grid (SCPG) which relies mostly on coal-fired power plants. The natural gas is supplied from a re-gasification terminal located near , which receives the LNG from Australia, under a take-or-pay agreement with the Guangdong Dapeng LNG Co. Ltd.

This report discusses the findings and conclusions of World Bank due diligence review of the Huizhou Gas-fired CCGT Power Plant and connected facilities (gas pipeline, LNG Terminal and power transmission line), from the perspective of World Bank Safeguards Policies. The report summarizes the findings of World Bank missions to the Huizhou CCGT Power Plant site in March, August and October 2007, and the World Bank task team’s exchanges with GHLPCL, its parent company Yudean Group, and various local and provincial authorities.

Safeguards Due Diligence Conclusions

The conclusions of the World Bank due diligence review are summarized below:

Environment

3 • All Chinese EA requirements were properly satisfied for the construction and operation of the Huizhou CCGT Power Plant. An EIA was approved by the State Environmental Protection Agency (SEPA) in 2001 and plant construction started in 2004. Agreement was reached with GHLPCL to implement an Environmental Management Plan (EMP) satisfactory to the World Bank.

• All aspects of CCGT Power Plant operation regarding plant worker and public safety are in strict accordance with Chinese regulations. Furthermore, GHLPCL management is fully committed to environmental protection and plant safety and maintains an organizational structure to manage both in a manner consistent with Western standards.

• The connected facilities, namely the LNG Terminal, gas pipeline and power transmission line, were in built and operated in compliance with Chinese EA regulations. To the extent that information was released by owners/operators of these facilities, and based upon actual site visits by the task team, it is believed that these facilities were also built and are operating in strict accordance with Chinese regulations for environment, worker and public safety.

• Nitrogen oxide impacts from Huizhou CCGT Plant operation are insignificant. Ambient air quality measurements of nitrogen oxides (NOx) in the vicinity of the Huizhou CCGT Power Plant are all well within Chinese air quality standards. State of the art NOx control technology (LOW NOX Burners) is being used with emission levels well within Chinese emission standards. Flue gases are released through a high stack further reducing the possibility of any significant impacts.

• A comprehensive evaluation by Chinese authorities, acting in strict accordance with their regulatory mandate, resulted in an ecological zoning of Daya Bay into specific core zones that effectively protects the natural habitats of endangered and threatened species and allows for economic development outside these core zones.

• The only outstanding issue remaining is the potential impact of the cooling water discharge from the Huizhou CCGT Power Plant in meeting Chinese standards and influencing the natural habitats of protected species in Daya Bay. To resolve this issue, GHLPCL agreed to: (a) revise the thermal plume modeling effort to reflect changes in the Huizhou CCGT Power Plant design and operating parameters, and (b) verify the revised modeling effort with a field monitoring program. If the cooling water discharge modeling and field verification program indicate significant impacts in the ecologically sensitive areas of Daya Bay or a violation of Chinese effluent standards, GHLPCL agreed to implement any additional mitigating measures to reduce these impacts to acceptable levels.

Resettlement

4 • All permanent land acquisition and temporary land occupation for the Huizhou CCGT Power Plant and connected facilities followed relevant national laws and regulations. For both the power plant and LNG terminal site, land acquisition, completed in the 1990s, and the transfer of land use rights from local governments to the project sponsors was done according to the country’s rules and regulations. For the 220kV transmission lines and LNG pipelines, a limited amount of land acquisition was made, and this was completed in early 2005. Compensations of affected people and collectives followed all relevant national laws and local regulations. Among project-affected villages, there are no concentrated ethnic minority populations. Extensive consultations were carried out and compensation has been paid directly to the affected villages and individuals. No outstanding issues or disputes were reported to Bank missions by affected communities.

5 SECTION A – Environmental Assessment Procedures and Documentation

A.1 Overview

A summary of the Environmental Assessment (EA) documentation for each of the three CCGT boiler units, and the connected facilities (transmission line, gas pipeline, LNG Terminal and re-gasification plant) is presented in Annex 1 (EA Procedures and Documentation). At the time these EA documents were prepared, disclosure was not a requirement of Chinese EA regulations for an EIA document (equivalent to World Bank EA Category A) and no disclosure is required by local Environmental Protection Bureau for projects requiring an “EA Table” (equivalent to World Bank EA Category B). Dapeng LNG Company was not obligated to provide the EA documentation to the World Bank (gas transmission line, LNG terminal and re-gasification plant) and refused to do so. However, the EA Table of Contents was provided and reviewed by the World Bank task team and it indicated that the document was organized to meet World Bank requirements for a Category A project.

A.2 Huizhou CCGT Power Plant

A.2.1 Environment Environmental Management Plan (EMP) Annex 2 provides the EMP prepared by GHLPCL. Since the construction of the power plant was completed and it is operating, the EMP focuses on environmental issues associated with the operational phase. The EMP addresses key operational environmental issues identified in the EIA and includes a mitigation plan, monitoring plan and institutional arrangements for environmental management. The task team reviewed the EMP and concluded that it is consistent with World Bank EA requirements. As a condition of ERPA, GHLPCL agrees to implement this EMP.

Summary of Public Consultation The public consultation for the Huizhou CCGT Power Plant was conducted in March 2000 as part of the Chinese EA requirements for a project requiring a Full EIA. As is the custom for EIA public consultation in China, the consultation is conducted as a questionnaire survey. Annex 3 provides the questionnaire format used and a summary of the results obtained. In general, local opinion was supportive of the project and the project site selected. There were no adverse power plant-related environmental issues that were considered significant by a majority of the population; although a reasonable number (~ 12 per cent) did not think discharging the thermal effluent into Daya Bay was a good idea.

A.2.2 Safety Safety Standards Used Safety standards utilized for the project design are presented in Annex 5. For the Huizhou Gas-fired CCGT Power Plant, there are 39 safety standards that are applicable. These standards are all national, and it is the opinion of the GHLPCL that they are comparable to Western Standards.

6 Government Approval Agencies and Associated Documentation The safety measures and designs adopted for the Huizhou Gas-fired CCGT Power Plant have been evaluated by the Guangdong Province Safety Scientific Technology Institution. The final report was completed in April 2005 and was submitted and filed in the National Safety Production and Supervision Bureau on November 2005. A copy of the confirmation letter is provided in Annex 4. All safety measures will be verified by the Guangdong Province Safety Scientific Technology Institution when the plant is completely operational.

Organization of the Safety Management System The Quality, Health, Safety and Environment Committee (QHSEC) is the most senior organization in charge of safety at the power plant. It is composed of twenty-six staff including a General Manager and Vice General Managers, and a registered safety engineer from the Special Safety Department. The safety engineer reports any situations involving power station safety at QHSEC meetings. The QHSEC reviews the information and makes the appropriate decision for any necessary action. Meetings are usually held monthly. Besides the QHSEC, a special Vice General Manager for the Quality, Health, Safety and Environment Department (QHSED) is the highest principal in the Company responsible for daily aspects of plant safety. There are five people in the QHSED, two have qualifications of middle level safety engineer and three have qualifications of primary level safety engineer. Certification of these safety engineers is the responsibility of the Guangdong Province Safety Supervision and Management Bureau.

From the beginning, the GHLPCL has invested in a major effort to ensure plant safety and has adopted several international standards. In March 2006 the plant has been awarded four stars from NOSA (National Occupational Safety Association) for their Safety, Health, and Environment Management System (SHEMS). NOSA is a South African certification organization that has been adopted by many large power groups world-wide. The Huizhou Gas-fired CCGT Power Plant has also received certification on ISO 9001 (Quality Management of Construction), ISO 14001 (Environmental Management System), and GB/T 28001 (equivalent to OHSA 18001, Occupational Health and Safety System).

Worker Safety Plan A Chinese language version of the worker safety plan was provided to the World Bank task team. The plan is updated annually and discussed and approved by the QHSEC, and issued by the Vice General Manager for the Quality, Health, Safety and Environment Department (QHSED). The plan has fourteen parts, including annual targets for safety, occupational health and environment, identification of areas for improvement, employee training on health, safety and environment and emergency response plan practice drills.

Emergency Response Plan and Organizational Arrangements

7 A Chinese language version of the Emergency Response Plan was provided to the World Bank task team. The Plan was approved by the General Manager of the power plant (as prescribed under the Standard of Management for Control of Emergency Plan and Response, see Annex 7). The emergency response organization team is composed of eight teams including the: (a) emergency response team, (b) worker injury assistance, (c) ambulance, (d) public safety etc. Each team has specific responsibilities as elaborated in the Standard.

There are 256 staff members responsible for management of emergency situations. All members of the ambulance team have first aid certification issued by the China Red Cross. The emergency response team members are all CCGT Power Plant employees and consist of a sixteen-member special Fire Protection Team, which has been qualified by the Chinese National Fire Protection Bureau. All fire protection team members are full-time firemen equipped with all required fire fighting equipment (e.g. three fire trucks, and various personal protection equipment such as gas masks, etc.)

Emergency Response Drill Program There are three levels of emergency response depending on the severity of the situation with Level 1 being the most serious. To date, sixty-one emergency response drill plans have been prepared: twenty-six at Level 1, twenty-six at Level 2, and nine at Level 3. At least two Level 1 drills are performed annually according to the Standard of Management for Control of Emergency Plan and Response).

In 2006, the Huizhou Power Plant performed four Level 1 drills, and in 2007, 14 Level 1, ten Level 2, and one Level 3 have been specified in the Huizhou Gas-fired CCGT Power Plant Annual Safety Plan. Level 1 emergency drills involve the entire plant staff as well as contractor employees, Levels 2 and 3 drills involve specific departments as specified by QHSED.

Procedures Manuals for Safety and Emergency Response The seventeen standards utilized by the Huizhou Power Plant for safety, occupational health, emergency and environment are presented in Annex 6 on Standards for Safety, Health, Environmental Risk. The Procedures Manuals for Safety and Emergency Response are provided in Annex 7, Standard of Management for Control of Emergency Plan and Response.

A.3 Connected Facilities A.3.1 Environment LNG Terminal, Gas Pipeline and Re-gasification Plant SEPA Approval The EIA Report was approved by SEPA in April 2003. The report and approval covered by the LNG Terminal, re-gasification plant (which is a process unit at the LNG Terminal) and gas pipeline. A copy of the SEPA approval is presented in Annex 8.

Power Transmission Line Huizhou EPB Approval

8 The electric power transmission line only required an EA Table by the Huizhou Environmental Protection Bureau (EPB). A copy of the approval letter (“Approval of the 220 kV Transmission Line”) is provided in Annex 12. No environmental penalties, fines or citizen complaints have been received to date from the operation of the transmission line.

A.3.2 Safety LNG Terminal and Re-gasification Plant Risk Assessment Approvals There are several safety assessments associated with the LNG Terminal, including an assessment by DNV (Det Norske Veritas Certification AS), an international provider of services for risk managements. However, internal regulations and policies of the BP, copies of the approvals were not permitted to be released.

Design Approvals The design report has been approved by the National Construction Ministry on September 2004. A copy of this approval (“Approval of the Design of LNG Terminal and Pipeline”) is presented in Annex 9

Structure of the Emergency Response Plan Cover pages for the Emergency Response Plan are presented in Annex 10. There are no Chinese approval requirements for this Plan.

Insurance Arrangements The Dapeng Company is a joint venture composed of BP and CNOOC. Insurance information is considered proprietary and cannot be released for purposes of the World Bank operation.

Institutional Arrangements and Responsibilities for Emergency Response Detailed information is considered proprietary by the Dapeng LNG Company and cannot be disclosed. .

LNG Pipeline Design Approvals The design approval is included in the “Approval of the Design of LNG Terminal and Pipeline” as discussed above and presented in Annex 9.

Post Construction Pipeline Inspection/Approval Program Detailed information is considered proprietary by the Dapeng LNG Company. A copy of selected parts of the inspection records provided to by the owners of the pipeline is presented in Annex 11.

Pipeline Operation Inspection Program The pipeline operation inspection program required considerable technological development and details cannot be disclosed because of the company’s internal regulations. To date, no penalties, fines or citizen complaints have been issued regarding

9 the operation of the gas pipeline.

SECTION B – ENVIRONMENTAL ASSESSMENT ISSUES

B.1 Nitrogen Oxide (NOx) Emissions and Air Quality

The Huizhou CCGT Power Plant utilizes the most modern burner designs for the suppression of NOx emissions and releases them through a high (80 meter) stack. Boiler NOx emission levels are measured with continuous emission monitors (see EMP, Annex 2, Section B Monitoring Plan) and results to date indicate NOx levels in the range of 42- 3 3 44 mg/Nm well below Chinese NOx emission standard (400 mg/Nm ).

Air quality estimates presented in the Huizhou Gas-fired CCGT Power Plant EIA for the ground level maximum are about 40 micrograms/Nm3 which is one third the Chinese standard (120 micrograms/Nm3) at about 3 kilometers south of the Huizhou Gas-fired CCGT Power Plant: a location that is situated in Daya Bay. Thus, the impacts of the NOx emissions are not anticipated to be significant. This conclusion is supported by results from two air quality monitoring stations currently operating in the approximate vicinity of the power plant’s sensitive receptors. These air quality stations are operated by the Daya Bay EPB. One of the monitoring stations was recently put into operation (beginning of October 2007). This station is approximately one kilometer from the Huizhou CCGT Power Plant. The other monitoring station is approximately 7 kilometers from the power plant and has been operating since 2003. The new station is state-of-the-art, monitoring a variety of organic chemicals in addition to the standard regulated pollutants (SO2, NOx, and PM10). The older station monitors only the standard regulated pollutants. Air quality data collected by the Daya Bay EPB is freely exchanged with the Huizhou Power Plant operating unit.

Within the limited time of operation of the new station, the highest recorded level of NOx was indicated to be 10 ppb or approximately 0.02 mg/Nm3; well within the maximum hourly standard of 0.12 mg/Nm3. The older monitoring station has been operating both before and after the initial start-up of the first CCGT unit. Air quality results for NOx provided by the Daya Bay EPB are presented below. No discernable pattern or trends in long term (daily average) values of NOx are evident.

3 Ambient Measurements of Air Quality (mg NOx/nM ) in the Daya Bay EDZ First Second Third Fourth Annual Chinese Year Quarter Quarter Quarter Quarter Daily Standard Average 2003 0.013 0.008 0.014 0.018 0.013+ 2004 0.008 0.009 0.011 0.010 0.0095 0.04 2005 0.010 0.015 0.015 0.010 0.0125 2006 0.011 0.016 0.013 0.017 0.014+

10 From the results of air quality monitoring to date, the World Bank task team concluded that air quality impacts of the power plant NOx emissions are not significant.

B.2 Thermal Plume Monitoring and Modeling

Results of the thermal plume modeling effort presented in the Huizhou Gas-fired CCGT Power Plant EIA were never verified with field measurements. This was of particular concern to the World Bank task team because of the ecologically sensitive nature for certain areas of Daya Bay (see Section C, “Natural Habitats” below). Therefore, the EIA thermal plume modeling effort was a key element in the due diligence review.

In its due diligence efforts, the World Bank task team required thermal plume monitoring to verify modeling results. The monitoring program, prepared by the Institute of Oceanology (Chinese Academy of Sciences), consists of three types of measurements: (a) Four fixed locations positioned approximately 1500 m apart to monitor both the centerline decline and off center decline of the temperature profile continuously over a complete tidal cycle (26 hours) (b) Twenty fixed points approximately 500 m apart that will be sampled sequentially, during the monitoring period (c) Five fixed level stations for measurement of vertical temperature profiles

The World Bank task team concluded that the monitoring program was satisfactory, and emphasized that it would be necessary to ensure that full load conditions are maintained at the Huizhou Power Plant throughout the monitoring period.

In the course of the due diligence, the World Bank task team learned that conditions under which the thermal plume was modeled for the EIA are different from conditions under which the plant was built and is operating (different cooling water discharge flows, different length for the cooling water discharge pipeline and physical changes to the Daya Bay coastline in the vicinity of the discharge pipe). As a result of these changes, the task team concluded that the thermal plume modeling effort has to be repeated utilizing actual conditions of plant construction and operation to allow the most plausible comparison with monitoring results.

Furthermore, the World Bank task team emphasized to GHLPCL that the results of the monitoring and modeling effort were to be presented in a short, concisely written report with direct comparisons between: (a) results of the monitoring program, (b) results of the EIA modeling, and (c) results of the current modeling effort. Graphic comparisons of the monitoring results, and previous and current modeling results would be an essential element of the report.

The report should include an initial statement clearly indicating whether or not the Huizhou Gas-fired CCGT Power Plant operation complies with Chinese standards and World Bank guidelines for thermal discharges in Daya Bay. According to World Bank thermal effluent guidelines for new power plants, temperature rise at the edge of the

11 mixing zone (the boundary where convective mixing between the effluent discharge and surrounding water, is replaced by convective and radiative heat transfer between the air- water interface) should not be more than 3 degrees Celsius above the background value. When the mixing zone cannot be defined, the temperature rise 100 meters downstream of the effluent discharge point should not exceed 3 degrees Celsius, provided no sensitive ecosystems exist within the 100 meter mixing distance. If the analysis indicates noncompliance with the guidelines, the report should also provide mitigating recommendation(s) that will assure the thermal discharges meet Chinese standards or World Bank environmental guidelines. The report should also address the influence of the thermal plume on the five core zones (protected areas) established for Daya Bay (see Section C, “Natural Habitats” below).

In summary, as a key element of the World Bank due diligence effort, GHLPCL agreed to the following actions:

(a) Implement the monitoring program for the thermal plume. It was estimated that the plant would reach full load approximately in November 2007.

(b) Perform mathematical modeling of the thermal plume dispersion under current using current coastline configuration and the actual conditions of power plant construction/operation.

(c) Prepare a short, focused report providing findings of the monitoring and modeling efforts, and, if necessary, include mitigating recommendations for compliance with Chinese effluent standards and World Bank thermal effluent guidelines.

A well-written English language version of the report should be sent to the World Bank for comments and acceptance. After the World Bank provides acceptance, the report is to be approved by the Daya Bay EPB. Documentation of EPB approval should be provided to the World Bank for inclusion in the Project Files.

GHLPCL agreed to make sure that a final report satisfactory to the Bank and approved by the Daya Bay EPB will be submitted to the Bank by March 15, 2008 and committed to implement any necessary remedial measures.

B.3 Daya Bay Ecological Zoning and Water Quality Classification

Ecological Zoning

In 1998, the General Office of the State Council issued national regulations on Strengthening the Management of Natural Protection Areas. In 1999 SEPA issued implementation rules for this regulation. Consistent with the regulation and rules, in 2002, the Guangdong Provincial Government in coordination with the Provincial Oceanic

12 and Fishery Administration divided Daya Bay into nine ecological zones. The nine zones include: (a) two test zones that permit economic development, (b) two buffer zones that allow limited economic activities (e.g. tourism, fishing etc.), and (c) five core or environmentally protected zones where no industrial discharges other than research activities are permitted. The five core zones in Daya Bay are legally defined to protect the natural habitats of the endangered species present.

Water Quality Classification

In 1991, the State Planning Commission (SPC) established a small parcel of land (about 10 km2) in the Daya Bay watershed as an Economic Development Zone (EDZ). In 1993, the SPC further expanded the EDZ to about 265 km2. Establishing this EDZ followed the national regulations and procedures in effect at the time.

In 1999, in accordance with the State Environmental Protection Law and the Marine Environmental Law, the Guangdong Provincial Government assigned jurisdiction of a 2.5 km width along the Daya Bay shoreline to the Guangdong Provincial EPB (GPEPB).

Consistent with this authority, the GPEPB assigned the water quality Category III to a section of the Northern Test Zone (see “Ecological Characterization” discussion above, thereby allowing for industrial activities in the EDZ as defined by the SPC. The power plant cooling water discharge is situated in this Test Zone.

The World Bank task team concluded that all institutions involved with water quality classification and establishment of ecological zones within Daya Bay all acted within their authority as defined by Chinese laws in effect at the time.

SECTION C – NATURAL HABITATS

The location and migratory movements of each of the five endangered species identified in the EIA are each situated in one of the five protected core zones discussed in Section B.3 above. A scaled map defining: (a) the core zones, and (b) power station location is presented in Annex 13.

Officials from the South China Sea Institute of Oceanology (Chinese Academy of Science) indicate to the World Bank task team that the white dolphin disappeared from Daya Bay prior to the construction of the Huizhou CCGT Power Plant and now are found in the approximately 150 km away from the plant site (near Hong Kong). The migratory patterns, feeding and breeding areas of the remaining endangered and protected species identified in the CCGT EIA (sea turtle, defined coral reefs, sea horse and lancelet) are all confined to the Daya Bay core zones as indicated in map presented in Annex 13.

13 As discussed above, according to World Bank thermal effluent guidelines for new power plants, temperature rise at the edge of the mixing zone should not be more than 3 degrees Celsius above the background value, or if the mixing zone cannot be defined, the temperature rise 100 meters downstream of the effluent discharge point should not exceed 3 degrees Celsius. GHLPCL indicated that the location of the thermal discharge outlet of the power plant is, at its’ closest point, approximately 8.5 km from the nearest core zone. Therefore, it is highly unlikely that the thermal plume, at 8.5 km away from the core zone at the nearest point, would have an impact on any protected core zone, but the modeling and monitoring program will provide definitive proof on this issue.

As indicated in the map provided in Annex 13, relative locations from the Huizhou Gas- fired CCGT Power Plant to the nearest beach/tourism areas are approximately 12 km away and commercial fishing activity 4 km away; all close to the shore line.

The thermal modeling/monitoring report previously discussed will include clearly drawn scale maps indicating the core zones and the area of influence of the thermal plume as determined by the modeling and monitoring efforts described in Section B.2.

SECTION D – RESETTLEMENT

D.1 Background

The construction of the CCGT power plant and the connected facilities including transmission lines, the LNG terminal and pipelines involved land acquisition, which included 90.25 ha of permanent land acquisition and 102.6 ha of temporary land occupation. Over 90 percent of permanently acquired land area was state owned, and all temporarily occupied land is collectively owned. (Table 1).A total of 25 villages from three districts were affected by permanent land acquisition and temporary land occupation. All of them are Hans with no concentrated ethnic minority populations.

Table 1: Scope of Land Acquisition Impacts for the Power Plant (ha) Total Demolitions Number Permanent Types of Amount of of Building of Facility Land Acquired Temporary and Villages Acquisition Land Areas Land Facilities Affected Huizhou CCGT 41.50 State owned 0.00 None None Power Plant 220kV 1.11 Collective 38.90 None 9 villages Transmission LNG Terminal 40.00 State owned 0.00 None None LNG Pipelines 7.64 Collective 63.70 None 16 villages Total 90.25 102.60

D.2 Implementation Status and Outcomes

14

The due diligence review found that land acquisition for the CCGT power plant and connected facilities followed the relevant national laws and regulations. Land acquisition for the Huizhou CCGT power plant site and LNG Terminal site was completed in the 1990s, and the transfer of land use rights from local governments to the plant owners was done according to the country’s rules and regulations. Land acquisitions for the 220kV transmission lines and LNG pipelines, was completed in early 2005. Compensations of affected people and collectives followed all relevant national laws and local regulations. Extensive consultations were carried out and compensation has been paid directly to the affected villages and individuals. No outstanding issues or disputes were reported to Bank missions by affected communities. The details of this review are provided below.

Huizhou CCGT Power Plant Site

The Huizhou CCGT Power Plant site consists of 41.5 ha, including 32.5 ha of land area and 9 ha of sea area. The 32.5 ha of land area had been acquired from Bogang Village in early 1990s by then Hui’an County Government as part of Daya Bay Industrial Development Zone. According to officials from Daya Bay Land Resources Bureau, majority of the land area acquired was woodland along the coast and some were dryland and paddy land. The compensation rates paid then were Y3000 per mu for paddy and Y2000 per mu for dryland. These compensation rates were considered as quite adequate by local villages. Due to relative abundance of resources, the Bogang Village still had quite large of farmland left after the land acquisition, with 1.65 mu per person in early 2000. Those acquired land areas were later sold by local governments to different land users in early 1990s. For the power plant site (32.5 ha) up to 20 different land users purchased the land areas in the process of land speculation, which came to an end in the 1990s, and most of these land areas had been idle since then.

In 2003, in order to resolve the issues caused by land speculation and enable the establishment of the Daya Bay Petrochemical Industrial District, the Huizhou Municipal Government adopted a decree called Method on Readjustment of Idled Land in Huizhou City. The proposed Daya Bay Petrochemical Industrial District would cover 24 square kilometers, within which a number of large industrial land users such as Shell Petrochemical Complex and LNG Power Plant could be located. Under that decree, the original land users who failed to develop their lands in the past were given three options for land readjustment, which included (1) selling their land to the local government at market price, (2) changing their land to other locations, and (3) reserving land spaces for their future projects. Following the decree, all previous land users on the power plant site agreed to sell their land use rights to the local government. According to Daya Bay District Land Resources Bureau, among these land users, two of them agreed to exchange sites with different locations and the remaining land users selected cash option for selling their land use rights to the government. Based on review of land readjustment file for different land users, the average land price the government paid to these land users was about Y115/m2, which was based on negotiation between relevant parties. Having received the full payment, the land users were pleased with the arrangements and no remaining issues were reported.

15

After obtaining land user rights from individual land users, the government signed land use rights transfer agreement with Huizhou LNG Power Plant on July 24, 2004.1 According to the agreement, a total of 41.5 ha of land area was transferred to the power plant, including 32.5 ha of land area and 9 ha of sea area (to be land filled during project construction). The agreed land use fees were set at Y117/m2 for land areas and Y107/m2 for sea area. The total payment amounted to Y47.6 million. Following the payment received by Daya Bay District Government, the land use certificate was issued to Huizhou LNG Power Company in 2004.

In terms of current status of original affected villages – Bogang Villageaccording to local officials, the village had been relocated to Daya Bay Resettlement Village in 2003 when all of the village land was acquired for the construction of Shell Petrochemical Complex. The compensation rates for the land acquisition followed the decree issued by Huizhou Daya Bay Economic Development District in 2001.2 According to the decree, the compensation for farmland acquisition was set at 16 times of Average Annual Output Value (AAOV) with 10 times AAOV as land compensation and 6 times AAOV as resettlement subsidy. The resulted compensation rates included Y17,000 per mu for paddy, Y12,285 for dryland/ vegetable land, and Y6000 per mu for woodland. These compensation rates are consistent with the PRC’s Land Administration Law and local implementation regulations. In terms of economic rehabilitation, the main approach was to provide certain amount of development land and certain number of employment opportunities. Taking Bagang Village as example, for the total land acquisition, the village was allocated 5- 6 ha of industrial land and certain number of full time jobs from Shell Petrochemical Plant.

All affected villagers were relocated into resettlement community in Xiqu Sub-district which was equipped with full urban amenities such as school, roads, infrastructure facilities and bus services. Each relocated household was provided a new housing plot with 100 square meters and completed first flood housing structure. The remaining structure was built by individual households. According to local government, the resettlement program for Shell Company was considered as quite successful and no problems reported.

220kV Transmission Lines

There are two 220kV transmission lines built by Huizhou Electric Power Company; one is a 12.7km line between the Huizhou CCGT Power Plant and the Fengtian Substation and another 26.2 km-long line between the Power Plant and Qiuchang Substation. The first 220kV transmission line is located within Daya Bay District passing through three villages. The second 220kV transmission line crosses two districts with three villages in Daya Bay District and six villages in Huiyang District. The land acquisition impact for the construction of 220kV transmission lines is limited to the construction of tower bases.

1 The agreements were signed in two phases, with first one in 2003 and supplement one in 2004. 2 Huizhou Daya Bay Economic Technology Development District Management Committee, 2001, No. 10 Decree: “China Ocean Shell Petrochemical Project Land Acquisition and Compensation Method”.

16 Based on average land area required for each tower or 150 square meters per tower and total number towers for the two transmission lines (30 towers for Fengtian Line and 63 towers for Qiuchang Line), the total amount of permanent land acquisition amounted to 1.11 ha. In addition, the construction of transmission lines also involved 38.9 ha of temporary land occupation in order to construct temporary access roads, build towers and install transmission lines. In general, these impacts are limited for each affected village and household.

According to officials from Huizhou Electric Power Supply Bureau, the actual process of land acquisition and temporary land occupation were carried out by local district land resources bureaus; and all compensation, including compensation for permanent land acquisition, temporary land occupation, and attached properties had been paid to affected individuals. To have a better understanding of land acquisition process for 220kV transmission lines, the World Bank task team visited both Daya Bay and Huiyang District Land Resources Bureaus.

According to officials from two land resource bureaus, the compensation for land acquisition followed new provincial regulation Decree on Implementing Guangdong Provincial Land Acquisition Compensation, which was issued by Guangdong Provincial Land Resources Department in 2006 (No. 149 Decree). The newly adopted provincial decree (2006) further increased compensation rates for permanent land acquisition, which include Y31,200 per mu for cultivated land, Y24,000 per mu for garden land, and Y9,600 for woodland.

For various attachments, particularly fruit trees, the compensation rates followed the local regulations based on replacement principle. In Daya Bay District, it was based on decree titled Daya Bay Economic Technical Development District Compensation for Land Acquisition and Attachments, issued by Daya Bay Economic Technical Development District in 2002. Under the decree, detail compensation rates were set for different sizes of Lici trees, Mango Trees, and other fruit trees, ranging from Y50-100 per piece for small tree to Y2000 per piece for matured tree. Similar compensation rates for various attachments were also set up in Huiyang District.

Local land resources bureaus officials informed the World Bank that these compensation rates were carefully adhered to during the implementation of land acquisition and compensation. All relevant impacts were investigated by staff of land resources bureau, with the presence of local sub-district and village officials and confirmed by affected people. The outcome of the survey was disclosed in the affected village for 5 days before compensations being delivered. The review of compensation records and interview with selected individuals in Daya Bay District confirmed that the implemented compensation rates are consistent with the local regulations.

Dapeng LNG Terminal

According to officials from Guangdong Dapeng LNG Company, Dapeng LNG Project includes LNG Receiving Terminal, Distribution Station and 385 km of pipelines. The

17 pipeline supplying gas to the Huizhou Power Plant, was 47 km, with 14 km between Dapeng Terminal to Pinshan Station, and 33 km between Pingshan Station and the Huizhou CCGT Power Plant Site. The Project was approved by NDRC in 2002 and land acquisition pre-appraisal was obtained prior to that approval.

The total land area for Dapeng LNG Terminal was about 40 ha, with 28 ha of land areas and 12 ha of sea area. It is located in Wangmu Village, Dapeng Town, Longgang District, Shenzhen Municipality. Among them 27 ha of land areas used to be rural land and 1 ha was military use land. The 27 ha of rural land was acquired by Shenzhen Municipal Government in 1996, who then transferred the land to the Dapeng LNG Company in 2004 for the construction of LNG terminal. Based on relevant regulations and negotiation with Shenzhen Government, the final land use fee for 27 ha of land areas was set at Y300/m2, for the LNG terminal and several additional projects, including the supply of additional LNG to Shenzhen and construction of a chemical industrial district for the city. However, since the land use right transfer for the sea area has not yet been finalized, the land use certificate for the whole terminal site has not been issued to Dapeng LNG Company.

According to staff from Dapeng LNG Company, although the land areas were acquired by Shenzhen Government in the late 1990s, additional compensation was provided by Dapeng LNG Company to the affected villagers during the construction of an access road. This additional amount included compensations for houses, green crops and fruit trees.

LNG Pipeline and Distribution Station

The LNG is transported through a distribution station – Pingshan Substation –and 47km of LNG pipelines. The total permanent land acquisition was 7.64 ha, including 0.86 ha for Pingshan Station and 6.78 ha for the LNG pipelines in Daya Bay District, based on a 3 meter wide corridor. According to Shenzhen municipal government requirements, permanent land acquisition is not needed during the pipeline construction. The LNG collection and transportation activity affected 16 villages and 6 sub-districts from Daya Bay District in Huizhou and Longgang District in Shenzhen. Along with land acquisition, about 63.7 ha of land areas were occupied temporarily during construction of the LNG pipelines, including 27.1 ha for Daya Bay District and 36.6 ha for Longgang District. Most of affected land areas are woodland or garden land. The implementation of land acquisition and compensation were handled differently in these two cities. In Daya Bay District, the land acquisition and temporary land occupation were carried out by local land resources bureau. In Longgang District, the process of compensation for temporary land occupation was carried out directly by Dapeng LNG Company.

In terms of compensation policies, for Daya Bay District, the land compensation was based on 16 times of AAOV, which included Y17,000 per mu for paddy, Y12,285 for dryland, and Y6000 per mu for woodland. These compensation rates are consistent with the PRC’s Land Administration Law and local implementing regulations. For various attachments, compensation rates similar to those in relation to the 220kV transmission

18 lines was used, which were based on a local regulation entitled Daya Bay Economic Technical Development District Compensation for Land Acquisition and Attachment. According to the Daya Bay District Land Resources Bureau, following local regulations, the compensation for land acquisition was paid directly to the affected villages, and the compensations for attachments (mainly fruit trees) and temporary land occupation were paid directly to the affected individuals. Both affected villages and households seemed to be pleased with compensation and process.

For LNG pipeline construction in Longgang District, all compensations followed the local regulation adopted by Shenzhen Municipal Government in 2003, Shenzhen Municipal Implementation Method on Land Acquisition and Compensation. They included Y24,000 per mu for cultivated land, Y17,000 per mu for garden land, and Y8,000 per mu for woodland. For attachments, based on replacement principle, different compensation rates were set for different sizes of fruit trees, ranging from Y40-100 per piece for small tree to Y2000-Y3000 per piece for matured tree. According to Dapeng LNG Company, the compensation for land acquisition (only for distribution station) was paid directly to the affected villages, and all compensations for attachments (mainly fruit trees), and compensation of temporary land occupation had been paid directly to the affected individuals. The affected villages and households were pleased with compensation and no pending issues remained.

19 ANNEXES

ANNEX 1 – EA PROCEDURES AND DOCUMENTATION Environmental Assessment Trial Period Acceptance Project Project Document Type Disclosure Approval Construction Approval Authority Approval Date Authority Consultation Date Date Start Date Element Description and Location And Date Date(s) Authority

LNG Plant- Gas-fired Full EIA October, September, August, Guangdong Environmental SEPA Boiler 1 Combined Title: EIA of 2001 2004 2006 EPB acceptance for CCGT Power Guangdong SEPA the three units Plant Huizhou LNG is in progress. Power Plant EIA It is expected Phase I Project disclosure is to be approved required by by SEPA by Date: SEPA in November May 2001 2004. Since 2007. the EIA for Located: phase I March 2000 Huizhou LNG LNG power Power Plant plant was finished in Huizhou City, May 2001, Guangdong disclosure LNG Plant- Province, PRC was not October, September, January, Guangdong SEPA Boiler 2 required. 2001/ 2004 2007 EPB SEPA LNG Plant- October, September, June, Guangdong SEPA Boiler 3 2001/ 2004 2007 EPB SEPA

20 Environmental Assessment Trial Period Acceptance Project Project Document Type Disclosure Approval Construction Approval Authority Approval Date Authority Consultation Date Date Start Date Element Description and Location And Date Date(s) Authority

Transmission The voltage EA Table April 2005 Approval Approval Not applicable Huizhou Line grade of the Title: Public Approval 2007 process process for EPB transmission EA table of consultation process for Huizhou for EA EA table is line is 220kV . 220 KV is not EA table is EPB table is simplified Transmission required for simplified simplifie by local line from EA table in by Huizhou d by local EPB. Huizhou LNG China. EPB. EPB. power station Disclosure to Fengtian was not Date: required by April 2007 Huizhou EPB. Located: Huizhou LNG Power Plant

Huizhou City, Guangdong Province, PRC Gas Supply Gas supply EIA Pipeline pipeline from April Guangdong Dapeng to Title: Not Not November 2003/ June 2006 Provincial Huizhou LNG EIA of available applicable 2004 SEPA EPB power plant is Guangdong January 2007 SEPA 47 km long. LNG Terminal

21 Environmental Assessment Trial Period Acceptance Project Project Document Type Disclosure Approval Construction Approval Authority Approval Date Authority Consultation Date Date Start Date Element Description and Location And Date Date(s) Authority

LNG LNG Terminal and Gas April November June Guangdong Terminal is located at Supply 2003/ 2004 2006 Provincial the Pipeline SEPA EPB Northwestern project corner of Huizhou LNG Date: power plant. Not available Regasification The April December June Guangdong Plant regasification Located: 2003/ 2003 2006 Provincial Plant is At the Dapeng SEPA EPB located in LNG Shenzhen at Company, Chentoujiao, Shenzhen, Dapeng Bay, Guangdong comprising a Province, PRC total area of 40 hectares.

22

ANNEX 2 ENVIRONMENTAL MANAGEMENT PLAN (EMP)

A. MITIGATION PLAN (OPERATION PHASE)

Issue Mitigating Cost of Mitigation Responsibility Measure Air Pollution Nitrogen oxide The advance low NOx burner has been USD: 9,800,000 Huizhou CCGT emissions adopted in Huizhou CCGT, which is the part Operations Division of the gas turbine

Air quality Dispersion through 80 meter stack Included in plant - (NOx) construction cost Noise Integrated control has been adopted for the USD 760,000 (some Huizhou CCGT noise control of Huizhou CCGT. Noise additional costs are Operations Division source was controlled in the first place. Noise included in the project reducing requirements were put forward to construction cost) the manufacturers in the equipment bidding, and effective noise isolation, noise elimination, sound absorption and vibration isolation measures have been taken to control the noise within specified standards. Meanwhile, HLPP plants many trees around it to reduce the noise to escape outside Water Pollution Cooling Water The water outlet is 825 m from the shore and USD 720,000 Huizhou CCGT Discharge effluent is discharged through a submerged Operations Division pipe Residual Less toxic, easier to manage, and less Included in the project Huizhou CCGT chlorine hazardous hypochlorite is used rather than cost Operations Division discharge liquid chlorine Chemical A set of treatment system of industrial USD 1,030,000 Huizhou CCGT (acidic and wastewater has been established Operations Division basic) Oily Oil water separator installed wastewater Domestic Primary treatment in the septic tank in each sewage area before sending to sewage treatment plant Solid Wastes Industrial It is regularly collected and sent to the USD 40,000 Daya Bay municipal disposal site for incineration Municipality Domestic Included in the municipal waste treatment USD 220,000 Environment and system Sanitation Company

23 B. MONITORING PLAN (OPERATION PHASE)

What Where How When Monitoring Cost Responsibility parameter is to be is the is the parameter is the parameter What is the cost of monitored? parameter to to be monitored/ to be monitored- equipment or be monitored? type of frequency of contractor charges to monitoring measurement or perform monitoring? equipment? continuous? Air Pollution Nitrogen oxide In the chimney CEM Continuous USD 200,000 Huizhou CCGT emissions stack Production and Operation Division Environmental Monitoring Unit Air quality Two locations Automatic Continuous - Daya Bay (NOx) in the Daya sampling and Environmental Bay District. analysis Protection Bureau One additional location is planned Noise Fenceline of Noise Every four hours USD 650 Huizhou CCGT Huizhou monitoring Production and CCGT Station device Operation Division Environmental Monitoring Unit Water Pollution Cooling Water Discharge Electronic Continuous Minor Huizhou CCGT Discharge outlet temperature Production and Temperature sensor Operation Division Environmental Monitoring Unit Thermal plume Around Retained South Once every one USD 20,000 South China Sea area and cooling water China Sea or two years (each time) Institute of position discharge Institute of (to be decided Oceanology outlet Oceanology after results of prepared first program are monitoring plan. obtained) Residual Discharge Colorimetry Once every ten Minor Huizhou CCGT chlorine in outlet days Production and discharge Operation Division Environmental Monitoring Unit Chemical At the ORION Model Once every ten USD 5,900 Huizhou CCGT (acidic and treatment plant 710A6 days Production and basic) effluent Operation Division wastewater Environmental COD, pH, Monitoring Unit Suspended Solids, Oil

24 What Where How When Monitoring Cost Responsibility parameter is to be is the is the parameter is the parameter What is the cost of monitored? parameter to to be monitored/ to be monitored- equipment or be monitored? type of frequency of contractor charges to monitoring measurement or perform monitoring? equipment? continuous? Oily Chinainvent Once every ten USD 18, 000 Huizhou CCGT wastewater Instrument days Production and Oil/grease Company Operation Division Model: Environmental Oil 460 Monitoring Unit Domestic At the sewage ORION Model Once every ten USD 5,900 Huizhou CCGT sewage plant effluent 230A days Production and pH Operation Division BOD5 Environmental Suspended Monitoring Unit Solids Solid Wastes Industrial At litter yard Visual Every 4-5 days Minor Huizhou CCGT Domestic Production and Operation Division Environmental Monitoring Unit

25 C. INSTITUTIONAL ARRANGEMENTS

Management Activity Responsibility Frequency

Environmental Data Production and Operation See Section B Collection Division, Technical Support (Monitoring Plan) above Unit (Environmental Monitoring) Environmental Data Analysis Production and Operation Monthly Division, Technical Support Unit (Environmental Monitoring) Report Preparation (Including Production and Operation Monthly Data Analysis and Division, Technical Support Recommendations) Unit (Environmental Monitoring) Report Recipients Vice Manager, Huizhou LNG Monthly Management Action Power Co. Ltd. As needed

26

ANNEX 3 PUBLIC CONSULTATIONS FOR THE CCGT POWER PLANT

Objective

The phase I of Huizhou LNG power plant project will generate certain impacts on the area’s environment, ecosystem and public communities. The construction and operation of the power plant will involve issues like land acquisition; alter of site’s landscape, and terrestrial area and coastline, etc. In a word, the construction of the LNG power plant will affect the benefits of nearby communities’ directly or indirectly. Thus, public investigation and survey have been carried out in order to find out public attitudes towards the proposed project and to maximally reduce the negative impacts of the project.

Public consultations The major survey respondents are local residents near the plant area, with a total number of 178 including officials, residents, and students. The questionnaire was carried out in March 2000, during the preliminary feasibility study stage of the project. Content of the questionnaire is shown in the following table.

Questionnaire of EIA of Guangdong Huizhou LNG power plant, Phase I (For administrative staff only)

Name Gender Male Female Age Occupation Address: Have you heard about the project Yes No 2 Do you have the project information in terms of Location Scale Investment Land occupation 3 Do you agree to construct the power plant in Daya Bay area? Yes No Noise Strongly oppose Does not matter 4 What’s the suitable location of the power plant in your opinion? Bogang, Donglian village, Xiayong town Lanchong village, Huidong county 5 In what degree do you think the surrounding environment will be affected by the operation of power plant? (multi-chosen) Large Small Very small Don’t know 6 The power plant will intake and discharge cooling water in aquatic-resource protection area of Daya Bay. Do you agree? Yes No Does not matter

27 7 Will your life and work be affected by the construction and operation of the power plant project? Large impact Some impact No impact Does not know 8 What are the key issues you are concerned? Impacts on daily life Local aquatic products Impacts on oceanic aquatic resource Air quality in residential area resource Destruction of plantation resource Water pollution Water and soil 9 Are you concerned about the environmental protection of the power plant? Very concerned Concerned Not really Not concerned 10 Will you support the project construction if it acquires your own land? Yes No Do you have any other advice or requirement on the construction of the power plant, please explain here:

Questionnaire of EIA of Guangdong Huizhou LNG power plant, Phase I (For residents near project site only)

Name Gender male female Age Occupation Address: Have you heard about the project Yes No 2 Do you have the project information in terms of location scale investment land occupation 3 Do you agree to construct the power plant in Daya Bay area? Yes No Noise strongly oppose does not matter 4 What’s the suitable location of the power plant in your opinion? Bogang, Donglian village, Xiayong town Lanchong village, huidong county 5 In what degree do you think the surrounding environment will be affected by the operation of power plant? ( multi-chosen) large small very small don’t know 6 The power plant will intake and discharge cooling water in aquatic-resource protection area of Daya Bay. Do you agree? Yes No does not matter 7 Will your life and work be affected by the construction and operation of the power

28 plant project? large impact some impact No impact does not know 8. What’s the environmental situation of the residential area you live ? Air good normal bad does not know Water Air good normal bad does not know Noise good normal bad does not know Ecosystem good normal bad does not know

9 What are the key issues you are concerned? impacts on daily life local aquatic products impacts on oceanic aquatic resource air quality in residential area resource destruction of plantation resource water pollution water and soil 9 Are you concerned about the environmental protection of the power plant ? very concerned concerned not really not concerned 10 Will the construction of power plant acquire your land ? Yes No 11 How do you want to be compensated if the project acquire your land?

12 Will the construction of power plant acquire your own aquatic farm? Yes No 13 How do you want to be compensated if the project acquire your aquatic farm?

14. Are you willing to be resettled? Yes No

15 Do you have any other advice or requirement on the construction of the power plant, please explain here:

Survey results and Analysis

200 copies of questionnaires were distributed. 178 respondents returned the copies (58 copies from administrative staff and 120 copies from local residents). The overall analysis of the survey contents are as follow:

1) Knowledge of the project preparation 93.1 percent of the administrative staffs in this survey heard about the construction of LNG power plant, with only 4 of them not being aware of the project. In the residents’ response, 75 percent are aware of the project construction, while 21.9 percent indicated that they never heard about it.

29

2) Knowledge of the basic information of the project construction

Over 89.7 percent of the administrative staffs heard about the Bogang site as the first option of LNG power plant site. In contrast, less staffs know about the project scale, investment and plant area. Over 60 percent of the responding residents know the location of the project, investment and plant area. 49.2 percent of them know about the project scale.

3) Public attitudes towards the plant construction in Daya Bay

Over 93 percent of the administrative staffs are in favor of constructing the LNG power plant project in Daya Bay. 6.8 percent of them oppose the idea. In residents’ responses, 92.2 percent are in favor of Bogang village as the plant site. Only 4 of them opposed the Bogang option. The survey did not receive strong objection from the respondents in constructing the power plant in Daya Bay. Thus, it can be concluded that all the respondents’ attitudes regarding the construction of LNG power plant are positive.

4) Public opinion on the selection of the most-suitable plant site

In administrative staffs’ response, 67.2 percent is supportive to select Bogang village as the plant site, compared with 15.5 percent in favor of Changzuijiao village. Besides, 12.1 percent of them thought both sites are suitable while 2 respondents opposed both options. In residents’ response, 39 percent thought bogang site is the best option while 40.2 percent is in favor of Changzuijiao site. 18.8 percent of the response gave supportive attitude to both sites while only one respondent thought neither site was suitable.

5) Public attitudes towards the environmental impacts caused by the project operation

81.1 percent of the administrative staffs thought the environmental impacts caused by the plant construction were minor, with 10.3 percent of them thought the construction would largely affect the surrounding environment. 5.5 percent of the residents considered environmental impacts by the power plant significant, with 67.2 percent felt uncertain about the impact.

6) Public attitudes towards cooling water intake and warm water discharge in Daya Bay aquatic-resource protection zone

Upon this question, 72.4 percent of the administrative staffs considered water intake and warm water discharge in Daya Bay area appropriate. However, 12.1 percent of them opposed the idea. 87.5 percent of residents’ response showed that they are holding favorable or neutral attitudes to this question. Only 3 of them opposed the idea.

7) Public attitude regarding the impact degree caused by the construction and operation of LNG power plant

30 Upon this question, 58.6 percent of the administrative staffs considered the impacts substantial. However, 17 of them considered that plant construction would not affect their daily life and 12.1 percent of them were uncertain upon this question. 28.1 of the residents considered significant impacts on their daily life, while 12.5 percent thought there was no impact at all. However, 59.4 percent can not make judgment on this issue.

8) Key concerns on the power plant construction

39.7 percent of the administrative staffs primarily concerned whether the construction would affect the oceanic aquatic-resources, while the prior impact was considered as the air and noise pollution in residential area by a proportion of 36.2 percent. 29.3 percent concerned that the plant construction would cause water pollution. Overall, the top three concerns are aquatic-resource impact, air and noise pollution, and the water pollution. In residents’ responses, 57.8 percent most concerned about air and sound quality, 45.3 percent worried about the impact on aquatic resources. And 5.6 percent concerned about the influence on daily lives.

9) Investigation on the land/aquatic farm acquisition during plant construction

The question was only distributed to the nearby residents. The survey found that 54.7 percent thought the construction would acquire their land, while only 21 respondents knew for sure that the construction would not acquire their land and about 29 percent are uncertain on this question. 21 respondents thought the project construction would occupy their aquatic farms. In contrast, 22.7 percent considered that no aquatic-farm acquisition would be occurred during the project construction. More than half of the residents held uncertain attitudes to this question.

10) Survey on the compensation forms of land/aquatic-farm acquisition

Among the administrative staffs, 50 respondents considered employment and financial compensation the best compensation ways. Among resident group, all respondents thought employment and financial compensation were the best compensation ways.

Summary comments of the survey

Through the public investigation, local governments and people at the two alternative sites are supportive to the LNG power plant project.

Survey respondents required project designers and decision-makers to take local situation into account, meanwhile to strictly enforce the land-acquisition compensation policies and resettlement policies during the construction. It is concluded that the LNG project is welcomed by local government and people as per the survey results.

31 ANNEX 4 CONFIRMATION LETTER ON SAFETY MEASURES AND DESIGNS BY THE NATIONAL SAFETY PRODUCTION AND SUPERVISION BUREAU

32

ANNEX 5 SAFETY STANDARDS UTILIZED FOR THE POWER PLANT

Item Description Standard No. Orders from the Ministry of Labor of the People’s Republic of China 1 Law or rule of law State Council’s notice on strengthening control on dust-proof and toxicant prevention 2 Law or rule of law Notice on monitoring station for labor protection and safety equipments in thermal power plants 3 Law or rule of law Regulations of check and supervision of Work Condition for electric industry 4 Law or rule of law Sanitary standard for the design of industrial enterprise 5 TJ36-79 Sanitary Standard for living drinking water 6 GB5749-85 Standards on hygienic protection of radiation 7 GB4792-84 Standards on partial quake in operational fields 8 GB10434-89 Code for design of building fire protection 9 GBJ16-87 Code for fire protection design of tall buildings 10 GB50045-95 Code for fire protection design power plant and substation 11 GB50229-96 Code of design for automatic sprinkler systems 12 GB50084-2001 Code of design for Water spray extinguishing systems 13 GB50219-95 Code of design for carbon dioxide extinguishing systems 14 GB50193-93 Design specification on less multiple foam fire-fighting system 15 GB50151-92 Code for Design of Automatic Fire Alarm System 16 GB50116-1998 Code for design of extinguisher distribution in buildings 17 GBJ140-90 Design specification on fire protection in garage and parking 18 lots GB50067-97 Design specifications on fire protection of internal design of buildings 19 GB50222-95

33 Item Description Standard No. Code for design of electric installations within explosion and fire hazard atmospheres 20 GB50058-92 Technical Code for Designing Fossil Fuel Power Plants on labor safety and industry sanitation 21 DL5053-1996 Safety Code for electric industry 22 DL408-91 Fire control code for power equipments 23 DL5027-93 Technical safety regulation for gaseous hydrogen use 24 GB4962-85 Safety codes for railways and roads transportation in the plant 25 area GB4387-94 Safety codes for hoisting machinery 26 GB/T6067-85 Regulation on protection of radiation 27 GB8703-88 Safety requirements for fixed vertical ladders 28 GB4053.1-93 Safety requirements for fixed steel oblique ladders 29 GB4053.2-93 Safety requirements for fixed industrial protective railings 30 GB403.3-93 Safety distance for machinery protection 31 GB8196-87 Safety of machinery-- safety distances to prevent danger zones being reached by the upper limbs 32 GB12265.1-1997 Safety of machinery--safety distances to prevent danger zones being reached by the lower limbs 33 GB12265.2-2000 Safety of machinery--Minimum gaps to avoid crushing of parts of the human body 34 GB12265.3-1997 35 Safety Signs GB2894-1996 Detailed Rules and Regulations on Safety Signs 36 GB16179-1996 37 Safety color GB2893-88 General rules for designing the production facilities in accordance with safety and health requirements 38 GB5083-1999 General rules for designing the production process in accordance with safety and health requirements 39 GB12801-91

34

35 ANNEX 6 STANDARDS FOR SAFETY, HEALTH, ENVIRONMENTAL RISK, AND EMERGENCY SITUATIONS

Description Issue date Preparatory Plans of emergency 2007-3-10 Instruction of Identifying Safety, Health and Environment risk 2005-4-7 Management Manual of Quality, Health, safety and enviroment 2006-8-30 Training Management Standard 2006-9-13 Training Management Standard before Contractor’s employees enter into plant to work 2006-9-13 Standard of management for project quality and accidents management 2005-8-18 Standard of management for safety and civilization production 2006-9-13 Standard of Management for Control of Emergency Plan and Response 2006-3-8 Standard of management for prevention of floodwater and typhoon 2005-8-18 Standard of Management for fire protection 2005-8-18 Standard of management for identifying and controlling SHE risk 2005-8-18 Standard of management for reporting, investigating and managing accidents 2005-8-18 Standard of management for work permission 2006-3-10 Standard of management for SHE area 2006-9-13 Standard of management for staff competition on SHE 2007-3-20 Standard of management for occupational health 2005-8-18 Standard of management for chemical and dangerous goods 2005-8-18

36 ANNEX 7 STANDARD OF MANAGEMENT FOR CONTROL OF EMERGENCY PLAN AND RESPONSE

Table of Content 1. Application Scope 2. Quoted Standards and Regulations 3. Terminologies 4. Responsibilities 5. Management Plan

1. Application Scope

2. Quoted Standards and Regulations

[2000]643 [2000]589 2002629 [2004]2 200618 2006123 Q/YD-212.004-2006 GB/T 19001-2000 GB/T 24001-2004 GB/T 28001-2001 CMB253-2004 NOSA Q/HZP-201.001 QHSE 3. Terminologies

4. Responsibilities 4 4.1

37 4.2 4.3 4.4 4.5 4.6

5. Management Plan

5.1 Institutional Arrangement 5.1.1 Organization Chart

38 56934885587119 119 120 5 85 13631900835 07 20

13927377698

13927377688

13922401683

13829121955 5587086 13825058829 13927370824

13829371908

13802359258

13802358859

13542723398

5587114 13927370943

5587113 13927370857

5587141 13927370893

5587092 13927370998

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13927371525

39

5.1.2 5.1.2.1

5.1.2.2 ( )HSE 5.1.2.3 a) b) c) d) e) f) 5.1.3 5.1.3.1 558-7119 5.1.3.2 5.1.3.3 a) b) c) 5.1.4 5.1.4.1 5.1.4.2 5.1.4.3 509010% 10% 5.1.4.4 5.1.4.5 a) b)

40 c) d) e) f) 5.1.5 5.1.5.1 QHSE 5.1.5.2 53 QHSE 5.1.5.3 a) b) c) 5.1.6 5.1.6.1 QHSE 5.1.6.2 , 30% HSE 5 5.1.6.3 a) b) 120 c) d 5.1.7 5.1.7.1 5.1.7.2 5 5 5.1.7.3 a) b) c) 5.1.8 5.1.8.1

41 5.1.8.2 5.1.8.3 a) b) 5.1.9 5.1.9.1 5.1.9.2 5.1.9.3 a) b) c) d 5.1.10 5.1.10.1 5.1.10.2 5.1.10.3 a) b) c) d 5.2 Emergency Response Management 5.2.1 5.2.2 1 QHSE 2 QHSE 3 4 5 6 7 8 9 10 QHSE 11 12 13 14 15 16 17 18

42 19 20 21 22 23 24 5.2.3 / 5.2.4 5.2.4.1 5.2.4.2 A 5.2.4.3 5.2.4.4 5.2.4.5 5.2.4.5 5.2.5 5.3 Emergency Supply Management 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6 5.3.7

43 5.3.8 3 5.3.8.1 5.3.8.2 5.3.8.3 5.3.8.4 5.3.8.5 5.3.8.6 5.3.8.7 5.3.8.8 5.3.9 5.4 Training 5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 5.4.6 5.5 Emergency Facilities Management 5.5.1 5.5.2 5.5.3 5.5.4 5.5.5 5.5.6 5.5.7 5.5.8 5.5.9

44 5.5.10 5.6 5.6.1 5.6.2 8 5.6.3 5.6.4 5.6.5 5.6.6 5.6.7 5.6.8 5.6.9 5.6.10 5.6.11 5.6.12 5.6.13 5.6.13.1 5.6.13.2 5.6.15 5.6.16

45 5.6.17 5.6.18 5.7 First Aid Management 5.7.1 5.7.2 5.7.3 5.7.4 5.7.5 3 5.7.6 3 5.7.7 5.7.8 5.7.9 5.8 Logistics support 5.8.1 5.8.2 5.8.3 5.8.4 5.8.5 5.9 Communication 5.9.1 5.9.2

46 5.9.3 5.9.4 5.9.5 5.9.6 5.9.7 5.9.8 5.9.9 5.10 Emergency Response Drill 5.10.1 1003 5.10.2 5.10.3 5.10.4 5.10.5 5.10.6 5.10.7 5.10.8 5.11 5.11.1 5.11.2 5.11.3 /B 5.12 Evaluation of Emergency Response Management 5.12.1 12 5.12.2

47 5.12.2.1 5.12.2.2 5.12.2.3 5.12.2.4 5.12.2.5 5.12.2.6 5.12.2.7 5.12.2.8 5.12.3 5.12.4 5.12.5

48 ANNEX 8 SEPA APPROVAL OF LNG TERMINAL AND GAS PIPELINE

49 50 51

52

ANNEX 9 APPROVAL OF LNG TERMINAL AND PIPELINE DESIGN

53 54 55 56 57 58 59 60 61 62 63 ANNEX 10 LNG TERMINAL AND REGASIFICATION PLANT COVER PAGES FOR THE EMERGENCY RESPONSE PLAN DPLNG-OPS-PR-091-SHR

64 ANNEX 11 SAMPLE INSPECTION RECORDS FOR THE LNG PIPELINE

The following sample of inspection records was provided to the World Bank task team by the owner of the LNG pipeline, during a visit to their facilities.

65

66 ANNEX 12 APPROVAL LETTER FOR THE 220 KV TRANSMISSION LINE

67

68 ANNEX 13 MAP OF DAYA BAY ECOLOGICAL CORE ZONES AND CCGT THERMAL PLUME CHARACTERISTICS

69