E2498 vol. 4 Environmental Management Plan Public Disclosure Authorized for Bayannaoer Water Reclamation and Environment Improvement Project Public Disclosure Authorized Hetao Water Affair Group, Ltd. Bayannaoer City, Inner Mongolia Public Disclosure Authorized Oct. 2010 Public Disclosure Authorized 1. General Information 1.1 Project profile Located in the west of Inner Mongolia autonomous region, a border area province in North China, Bayannaoer City is amongst 105°12 109°53 E and 40°13 42°28 N, connecting with Baotu City and Wulanchabu City at the east, abutting on Alxa League at the west, close to the Yellow River at the south opposite to Yike Zhao League, bordering the People's Republic of Mongolia at the north with a 2 boundary line of 368.89km, covering an area of 65788 km , with the length of 378 km form east to west and the width of 238 km from south to north, governing the administrative divisions of Linhe District, Wulateqianqi County, Urad Middle Banner, Wulatehouqi County, Hangjin Back Banner, Wuyuan County and Dengkou County, with Hetao Irrigation Area as the core. In 2003, approved by the State Council, this City was upgraded from League into a prefecture-level City in the west of Inner Mongolia autonomous region. In accordance with the economic development strategy of the autonomous region and Bayannaoer City, in order to make full use of the abundant mineral resources within the city as well as that from Mongolia, it is planned to build up Qingshan Industrial Zone, Jinquan Industrial Zone, Shahai Industrial Zone, Linhe Chemical Industrial Zone and Urad Industry Base and therefore, Bayannaoer City will be the key heavy chemical industry base in Inner Mongolia autonomous region. Accordingly, the water requirements of the perspective long-term plan will be up to about 520 million m3, of which the water requirements of long-term plan by the industrial zones within the mountainous areas serious lack of water resources will be up to 410 million m3. According to the estimate in the Report on the Comprehensive Planning with regard to Water Resources in Bayannaoer City, the gross amount of the water resources along the south foot of Yinshan Mountain within Bayannaoer City in the Yellow River Valley is 587 million m3, of which the gross amount of groundwater is 380 million m3, mainly used as domestic water for urban and rural residents. And industrial water is mainly from the recycled water according to relevant industrial policies of the State. Covering a water surface of 293km3, with an aggregate storage capacity of 330 million m3, Wuliangsuhai Lake Lake is the largest riverside fresh water lake in the upper and middle reaches of the Yellow River, where, in recent years, the industrial waste water and urban domestic sewage increases year by year and the pollution from the general drainage canal is increasingly severe with the development of industrial production and the increase of urban population in the irrigation area, in particular, the trend of eutrophication in Wuliangsuhai Lake Lake is increasingly severe, resulting in three to five times of the total phosphorus, total nitrogen and chemical oxygen-consumption in the lake beyond National Grade III standard for surface water and the quality of the water being worse than Grade V, which speeds up the biological fill up rate of the lake and the eco-function of the lake is fading away. What’s more, in order to reserve enough storage capacity for floodwater before flood season, it is necessary to open the check gate at the outlet of the general drainage canal to discharge water into the Yellow River, so the polluted water stored in the lake causes severe pollution threat to the Yellow River. In order to further promote the comprehensive treatment of water environment in Bayannaoer City, to strengthen greatly the infrastructural construction of the urban environment, to reduce the pollution load of Wuliangsuhai Lake Lake, to relieve environmental degradation, to improve the quality of urban water environment and further to promote the process of urbanization and the increase of economy, Bayannaoer municipal party committee and government make decision to cooperate with the World Bank to implement the Project of Comprehensive Treatment of Water Environment in Bayannaoer City by loan from the World Bank. Through a great deal of pre-phase the preliminary investigation and study as well as careful preparations, in August 2006, Bayannaoer municipal party committee and government lodged a formal application with National Development and Reform Commission for the utilization of the loan of 150 million USD from the World Bank (plus domestic counterpart funding of about RMB 2.125 Yuan) to implement the Project of Comprehensive Treatment of Water Environment in Bayannaoer City (hereafter referred to as simply “this Project”), which was approved in July 2009 and listed into the National Projects Alternatives Planning to use loans from World Bank during 2010 2012 fiscal years. The Project of Comprehensive Treatment of Water Environment in Bayannaoer City (hereafter referred to as simply “this Project”) comprises of nine sub-projects (of which eight involves in takeover of land, civil engineering, equipment procurement and competence construction), mainly including the constructions of the water supply engineering of recycled water of Wulatehouqi County Industrial Zone, the water supply engineering of recycled water of Ganqimaodao customs port Processing Zone, the water supply engineering of recycled water of the third drainage canal, the water supply engineering of recycled water of the seventh drainage canal, the sewage disposal and reuse project of Wulatehouqi County Industrial Zone (Huhe Town), the sewage disposal and reuse project of Ganqimaodao customs port Processing Zone(Delinshan Town), the sewage disposal and reuse project of Wulateqianqi County Industrial Zone(Xianfeng Town), the excavating engineering of grid water channels in Wuliangsuhai Lake Lake area, the project of artificial wetland as the biological transition zone in Wuliangsuhai Lake Lake area. Each sub-project and the distribution location are shown in Table 1.1-1. Table 1.1-1: Each sub-project and the distribution location Evaluated S.N. Name of sub-project Location by The water supply engineering of recycled Wulatehouqi CRAES 1 water of Wulatehouqi County Industrial Zone County the sewage disposal and reuse project of CRAES Wulatehouqi 2 Wulatehouqi County Industrial Zone (Huhe County Town) the water supply engineering of recycled water Hangjin Back Bayannaoer 3 of the third drainage canal Banner IES the water supply engineering of recycled water Wuyuan CRAES 4 of the seventh drainage canal County the water supply engineering of recycled water CRAES Urad Middle 5 of Ganqimaodao customs port Processing Banner Zone 6 the sewage disposal and reuse project of Urad Middle Bayannaoer Ganqimaodao customs port Processing Banner IES Zone(Delinshan Town) the sewage disposal and reuse project of Bayannaoer Wulateqianqi 7 Wulateqianqi County Industrial IES County Zone(Xianfeng Town) the excavating engineering of grid water Wulateqianqi CRAES 8 channels in Wuliangsuhai Lake Lake area County The promotion and demonstration project of CRAES artificial wetland as the biological transition Wulateqianqi 9 zone and the non-point source in County Wuliangsuhai Lake Lake area Whereas the seven sub-projects in respect to the sewage disposal and the water supply engineering of recycled water in the industrial zones belong to the projects within the environment protection category with less impact on the environment, these projects are just required to compile environmental impact statement without compilation of respective environment management plan according to relevant provisions of domestic environment impact evaluation and the requirements of the safety assurance policy by World Bank. 1.2 Objectives of environment management plan The purpose to formulate EMP means to formulate a set of technically feasible, financially sustainable and exercisable environmental cures against inevitable environment impact to define the measurements and arrangements in respect to the environment mitigation, environment management and institution construction carried out by project contractors, supervisors, operators and environmental management departments during the period of project construction and operation so as to eliminate or offset the adverse impacts caused by this project on the society and the environment to the fullest extent possible and to lower the risk to an acceptable lever. The specific objectives are as follows: 1 Making clear the environment management obligations of the contractors and operators Department of Environmental Protection of Inner Mongolia, the environment evaluation units and design units conduct careful on-site review and confirmation of the environment protection targets and to put forward effective measures for environment mitigation, which are included into the engineering design and taken as the contractual responsibility of the contractors and operators of the project construction. 2 Operating instructions for environment management The environment monitoring plan during the construction period and operation period proposed in EMP can ensure the effective implantation of the measures for environment mitigation, which, as the environment protection documentation, shall be offered to the construction and supervision units, environmental supervision units and other relevant units during the periods of