Initial Environmental Examination

Project Number: 51401-002 June 2020

PRC: Green and Intelligent Logistics Management and Transport Demonstration Project

Railroad Multimodal Bulk Commodity Logistics Park Subproject

Prepared by Shaanxi Provincial Foreign Capital Utilization Center of Shaanxi Provincial Transport Department and Shaanxi Provincial Railway Investment Group for the Asian Development Bank

CURRENCY EQUIVALENTS

(as of 25 May 2020) Currency Unit – yuan (CNY) CNY1.00 = $0.1403 $1.00 = CNY7.1294

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMoP Environmental Monitoring Plan EMP Environmental Management Plan FSR Feasibility Study Report GDP Gross Domestic Product GRM Grievance Redress Mechanism IA Implementing Agency IEE Initial Environmental Examination IT Interim Target MAC Maximum Acceptable Concentration MEE Ministry of Ecology and Environment MEP Ministry of Environmental Protection PAM Project Administration Manual PCR Physical Cultural Resources PIE Project Implementation Entity PMO Project Management Office PPE Personnel Protective Equipment PRC People’s Republic of SPS Safeguard Policy Statement, ADB SPTD Shaanxi Provincial Transport Department TA Technical Assistance WB World Bank WHO World Health Organization WWTP Wastewater treatment plant

WEIGHTS AND MEASURES

BOD5 Biochemical Oxygen Demand, five days cm Centimeter CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels kg Kilogram km Kilometer kWh Kilowatt Hour Leq Equivalent Continuous Noise Level m Meter m/s Meters per Second m2 Square Meters m³ Cubic Meters mg/l Milligrams per Liter mg/m3 Milligrams per Cubic Meter µg/m3 Micrograms per Cubic Meter NOx Nitrogen Oxides oC Degrees Celsius O3 Ozone pH A measure of the acidity or alkalinity of a solution PM Particulate Matter PM10 Particulate Matter smaller than 10 micrometers PM2.5 Particulate Matter smaller than 2.5 micrometers RT Refrigerating Ton SO2 Sulfur Dioxide t/h Tons per Hour TSP Total Suspended Particulates

NOTE

(i) In this report, "$" refers to US dollars. (ii) This document has been prepared following ADB’s Safeguard Policy Statement 2009.

This initial environmental examination 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 the ADB website.

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

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 I. Introduction ...... 7 A. The Project ...... 7 B. Introduction of Borrower ...... 7 C. Report Purpose ...... 8 D. Approach to Report Preparation ...... 8 E. Report Structure...... 8 II. Policy, legal and administrative framework ...... 10 A. Applicable ADB Policies, Regulations and Requirements ...... 10 B. PRC Environmental Legal Framework ...... 11 C. PRC Environmental Impact Assessment Framework and Procedures ...... 12 D. Project Domestic EIA Report ...... 13 E. Related International Agreements ...... 15 F. Applicable PRC Environmental Standards...... 16 III. Project Description ...... 25 A. The Project ...... 25 B. Project Location ...... 25 C. Project Rational...... 25 D. Project Scope ...... 26 E. Implementation Arrangements ...... 33 IV. Description oF the Environment ...... 35 A. Location ...... 35 B. Shaanxi Province Overview ...... 35 C. Xi’an City Overview ...... 36 D. Ambient Environment Baseline ...... 39 E. Ecological and sensitive Resources ...... 48 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...... 52 A. Pre-construction Measures shall be Implemented During Detailed Design ..... 52 B. Anticipated Environmental impact and mitigation measures during the construction phase ...... 53 C. Anticipated Environmental Impact and Mitigation Measures during Operation Phase 64 D. Positive impact during the operation stage ...... 68 VI. ANALYSIS OF ALTERNATIVES...... 70 A. Subproject Rational...... 70 B. Site location...... 70 C. Overall Alternative Analysis ...... 71 VII. Information disclosure and public consultation ...... 72 A. PRC and ADB requirements for disclosure and public consultation...... 72 B. Public consultation ...... 72 C. Future Consultation Activities ...... 79 VIII. GRIEVANCE REDRESS MECHANISM ...... 80 A. Introduction ...... 80 B. ADB’s GRM requirements ...... 80 C. Current GRM practices in the PRC ...... 80 D. Project level GRM ...... 80 IX. Conclusion ...... 83 Appendix I Environmental Management Plan ...... 84

EXECUTIVE SUMMARY

A. Introduction

1. This initial environmental examination (IEE) report has been prepared for the proposed Rail-road Multimodal Bulk Commodity Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project in Shaanxi Province of the People’s Republic of China (PRC). The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

2. The subproject will be located at located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City. The subproject will build a rail-road multimodal bulk commodity logistics park and have two components including a railway warehouse and logistics area and one special railway line area (including a departure and arrival yard, and a loading and unloading yard) as well as supporting public utilities. The subproject will improve the capacity of freight transport organizations in the south of Xi’an and reduce the environmental impacts from road transportation replaced by railway transportation.

3. The subproject will promote the development of Xi’an logistics industry, improve the transportation organization structure in Xi’an, promote the overall development of Yinzhen Logistics Park Area and facilitate the sustainable development of economy and society. Once operational, the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional economy development and increase employment rates of local residents; (iii) reduce the road freight volume of long-distance bulk cargo and corresponding exhaust gas emission; and (iv) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM 2.5, and CO2 and improve local air quality.

B. Policy, Legal and Administrative Framework for Environmental Impact Assessment

4. The Environmental Impact Assessment (EIA) system has been established in China for more than 40 years. As the domestic EIA is based on environmental laws and regulations, the subproject is assessed in a comprehensive or focused manner according to relevant regulations and guidelines, and the impact mitigation measures are proposed so as to ensure the subproject construction complies with national and local laws and regulations and will not cause significant environmental impacts.

5. At the same time, relevant environmental protection requirements are proposed in accordance with the Safeguard Policy Statement (SPS) 2009 of the Asian Development Bank (ADB) in the preparation of this report. All applicable requirements of the SPS 2009 have been addressed in the IEE.

C. Implementation Arrangements

6. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign

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Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. Shaanxi Provincial Railway Investment Group will be the subproject implementation entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers.

D. Project Scope

7. The subproject will be located at located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City. The subproject has an area of 326,973.33 m2 and a floor area of 42,923.57 m2. The subproject will build a rail-road multimodal bulk commodity logistics park and have two components including a railway warehouse and logistics area, and a special railway line area (including a departure and arrival yard, and a loading and unloading yard) as well as supporting public utilities.

E. Construction Schedule

8. The total construction phase of the subproject will be approximately 18 months.

F. Description of the Environment

Location and Topography

9. Xi'an is the capital of Shaanxi Province and a sub-provincial city in northwest China. It is one of the oldest cities, the oldest prefecture capital and one of the Four Great Ancient Capitals in China, having held the position under several of the most important dynasties in Chinese history, including Western Zhou, Qin, Western Han, Sui, and Tang dynasty. Xi'an is the starting point of the Silk Road and home to the Terracotta Army of Emperor Qin Shi Huang.

10. Xi’an is situated in the “Guanzhong Plain” (known as the “800-mile basin”) which is the alluvial plain of the Weihe, Jinghe and Luohe Rivers with deep, fertile soil and rich agricultural production. Bordering the plain are the Mountain range in the south and Weibei Terrace region in the north, both of which contain abundant coal, metal and other non-metal mineral resources, and various natural resources.

11. Xi’an City is located at the south edge of the central part of the Weihe graben basin between Qinling Mountain in the south and Weihe River in the north on thick Tertiary and Quaternary unconsolidated deposits. The terrain is higher in the southeast and lower in the northwest, presenting a stepped decline along this gradient. Xi’an City has a flat relief at an altitude of 400 m.

Meteorology and Climate

12. Xi'an has a temperate climate that is influenced by the East Asian monsoon, and is classified under the Köppen climate classification as situated on the borderline between a semi- arid climate (BSk) and humid subtropical climate (Cwa). The Wei River valley is characterized by hot and humid summers, cold and dry winters, and dry springs and autumns. Most of the annual precipitation is delivered from July to late October. Snow occasionally falls in winter, but rarely settles for long. Dust storms often occur during March and April as the city rapidly warms up. Summer months also experience frequent but short thunderstorms. The monthly 24-hour average temperature ranges from around the freezing mark in January to 27.0°C in July, with an annual

3 mean of 14.08°C. With monthly percent possible sunshine ranging from 31 percent in December to 47 percent in August, the city receives 1,536 hours of bright sunshine annually. Extremes since 1951 have ranged from −20.6°C in January 11, 1955 to 41.8 °C in June 21, 1998. A highest record of 42.9°C was registered on June 17, 2006.

Water Resources

13. In ancient times, Chang’an (now knows as Xi’an) was famous for its eight rivers. Bahe River and Chanhe River in the east, Juehe River and Haohe River in the south, Zaohe River and Fenghe River in the west, and Weihe River and Jinghe River in the north of Xi’an. Besides, there are other big rivers such as Heihe River, Laohe River and Linghe River in Xi’an. Most of these rivers belong to the Weihe River system in the Yellow River Basin.

14. The subproject site is located at Chanhe River basin. The nearest river of the subproject is the Dayu River which is 1.5 km away from the subproject site in the east. Dayu River is a primary tributary of Kuyu River and the secondary tributary of the Chanhe River. Dayu River is classified as Class III surface water body.

Ecological and Sensitive Resources

15. The subproject has its surrounding area developed as urban development zone. Based on the site visit and collected information, there are no known rare or endangered flora or fauna, species with international, national or provincial protection status, areas of natural or critical habitat, parks, nature reserves, or areas with special national, regional or local ecological significance within or adjacent to any of the component site. There are also no known drinking water sources, scenic sites, or sites with Physical Cultural Resources (PCRs) based on site surveys and literature review.

16. The west boundary of the railway warehouse and logistics area is close to farmland and Fengqi Mountain Cemetery. The nearest sensitive receptors of the special railway line area is Gaozhai Village which is 100 m away in the east. The nearest sensitive receptors of the departure and arrival yard is Xinzhuang Village which is 15 m away in the east.

Socioeconomic Conditions

17. In 2019, gross domestic product (GDP) of Xi'an was 932.119 billion yuan, of which the primary sector accounted for 3.0% or CNY 27.913 billion; the secondary sector accounted for 34.0% or CNY 316.744 billion; and the tertiary sector accounted for 63.0% or CNY 587.462 billion Yuan. The GDP per capita was 92,256 yuan.

Physical Cultural Resources

18. Located in the middle of the Guanzhong Plain, Xi’an is one of the three international metropolises designated by China. In 2017, there were 3,246 immovable cultural relic sites and 392 cultural relic protection sites (including 52 national cultural relics protection sites, 105 provincial cultural relics protection sites, and 235 city and county-level cultural relics protection sites) in Xi’an, including 2 world cultural heritage sites and 4 national archaeological parks. Xi’an has 126 museums, including 34 state-owned museums, 45 industry museums, and 47 non-state- owned museums.

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G. Anticipated Impacts and Mitigation Measures

19. Anticipated positive and negative environmental impacts of the subproject were assessed based on the domestic Feasibility Study Report (FSR), domestic environmental impact assessment (EIA) report; public consultations led by PIE and assisted by ADB technical assistance (TA) consultants; and site visits, surveys and consultations undertaken by PIE and ADB TA consultants.

20. Pre-construction, construction phase and operation phase of the subproject were assessed respectively. As the assessment results indicate that the environmental impacts are very limited in the pre-construction stage and are mostly associated with ensuring appropriate incorporation of mitigation measures into the project design.

21. Potential negative environmental impacts during construction phase are short-term and localized, and are associated with soil erosion, solid waste, wastewater, construction noise, fugitive dust, disruption of traffic and community services, and risks to workers and community health and safety. These can be effectively mitigated through good construction and health and safety practices

22. Potential negative impacts during operation phase are associated with air pollution from vehicles, solid waste, wastewater, noise, and health and safety risks to workers and community. These can be effectively mitigated through good operation of the subproject and health and safety practices.

23. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation mode transformation. Once operational, the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel emissions of atmospheric pollutants such as NOx, PM2.5, and CO2.

H. Alternative Analysis

24. With the promotion of national and regional strategies such as Guanzhong Plain Urban Agglomeration Development Plan and China (Shaanxi) Pilot Free Trade Zone, Xi'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region.

25. Xi’an has a well-developed railway, highway and aviation transportation network, and has become an important hub in northwest China. At present, Xi’an has air routes to all provincial cities in China. There are direct flights from Xi'an to many major cities in Asia, including Bangkok, Busan, Fukuoka, Hong Kong, Kuala Lumpur, Manila, Osaka, Sapporo, Singapore Seoul, and Taipei. As a tourist city, Xi'an has built expressways to Lintong, and , with well- maintained roads to famous scenic spots in suburban counties and to the north slope of the Qinling Mountain. The National Expressway G108, 210, 211 and 312 passes through Xi’an City and of Xi’an City has a good highway transportation condition. Xi’an is classified as International Comprehensive Transport Hub by National Development and Reform Commission in 2018.

26. As a developing logistics park, Xi’an South Railway Station Logistics Park will provide more transportation service in the future with the development of Xi’an. The subproject will build

5 a rail-road multimodal bulk commodity logistics park to provide railway transportation service to Xi’an. Implementation of the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel emissions of atmospheric pollutants such as NOx, PM2.5, and CO2.

I. Information Disclosure and Public Consultation

27. During preparation of domestic EIA, three rounds of information disclosure and public consultation were implemented. No public feedback was received during public information disclosure.

28. According to the requirements of ADB's SPS 2009, two public consultation meetings of this subproject were held in Yinzhen Town. The two meeting were held in nearest sensitive receptors - Gaozhai Village and Xinzhuang Village. The meeting in Gaozhai Village was held on October 31, 2019 and the meeting in Xinzhuang Village was on December 25, 2019. A public consultation meeting information notice was posted in two villages for one week prior to the meeting.

29. During the consultation, the PIE introduced relevant information such as project construction content and construction sites, and the EIA institute introduced the potential environmental impacts and mitigation measures during the construction and operation phases. While the participants believed that the subproject will improve their quality of life and provide more job opportunities to nearby residents.

30. During the two consultation meetings, a total of 32 questionnaires were distributed and 32 valid questionnaires were received. The questionnaires focused on potential environmental impacts and mitigation measures.

31. The overall support for the subproject is very strong,100% of the respondents support construction of the subproject; 81.3% of the respondents indicated that they accepted the anticipated environmental impacts and mitigation measures, 18.7% of respondents indicated that the top three environmental issues during the construction and operation phase they identified were dust during construction, noise during construction and operation and wastewater during construction.

32. Meaningful consultation will continue throughout detailed design, construction, and operation phases, including information disclosure by the PIE and posting of project information on village notice boards.

J. Grievance Redress Mechanism

33. During the construction and operation phase of the subproject, the PIE will establish a Grievance Redress Mechanism (GRM) to receive and assist in the resolution of complaints. GRM includes procedures for accepting complaints, recording key information, and evaluating and responding to complaints within a reasonable time frame. Any concerns of concern raised through GRM will be dealt with promptly and transparently without retaliation against the complainant.

K. Environmental Management Plan (EMP)

34. The subproject has developed a comprehensive EMP to ensure the implementation of

6 identified mitigation and management measures to avoid, mitigate and compensate for the expected adverse environmental impacts, the monitoring and reporting of monitoring indicators, and compliance with relevant environmental laws, standards and regulations in China, as well as SPS 2009. The EMP includes an environmental monitoring plan (EMoP) to monitor the environmental impacts and assess the effectiveness of mitigation measures, as well as capacity building and training programs focused on health, safety and the environment. EMP is shown in Appendix 1.

L. Risks and Key Assurances

35. The PIE of the subproject has limited experience in ADB's projects. To assist in the effective implementation of the EMP, the PIE will appoint a full-time management staff member for environmental and social affairs, meanwhile employ part-time Loan Implementation Environmental Consultant (LIEC) if needed. Pre-construction preparation and related institutional responsibility have been included in the EMP. All staff members are required to receive training on ADB environmental safeguard requirements and EMP implementation.

M. Conclusion

36. Through the environmental assessment process, it is concluded that the subproject has: (i) selected appropriate site and technologies to build one modern logistic park; (ii) identified potential negative environment impacts and established mitigation measures; (iii) received public support from the component beneficiaries and affected people; (iv) established project-level GRM procedures; and (v) prepared a comprehensive EMP including environmental management and supervision structure, environmental mitigation and monitoring plans, and capacity building and training.

37. Overall, any minimal adverse environmental impacts associated with the subproject can be prevented, reduced, or minimized through the appropriate application of mitigation measures.

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I. INTRODUCTION

A. The Project

1. This IEE report has been prepared for the proposed Rail-road Multimodal Bulk Commodity Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

2. The subproject will be located at located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City. The subproject will build a rail-road multimodal bulk commodity logistics park and have two components include the railway warehouse and logistics area and a special railway line area (including departure and arrival yard and loading and unloading yard) as well as supporting public utilities. The subproject will improve the capacity of freight transport organizations in the south of Xi’an and reduce the environmental impacts from road transportation replaced by railway transportation.

3. The subproject will promote the development of Xi’an logistics industry, improve the transportation organization structure in Xi’an, promote the overall development of Yinzhen Logistics Park Area and facilitate the sustainable development of economy and society. Once operational, the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional economy development and increase employment rates of local residents; (iii) reduce the road freight volume of long-distance bulk cargo and corresponding exhaust gas emissions; and (iv) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM 2.5, and CO2 and improve local air quality.

B. Introduction of Borrower

4. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. Shaanxi Provincial Railway Investment Group will be the project implementation entity (PIE) and responsible for implementing the subproject and administering and monitoring contractors and suppliers.

5. Shaanxi Provincial Railway Investment Group was founded on January 13, 2011 with a registered capital of CNY 110 million, and was jointly established by Shaanxi Railway Investment Group Co., Ltd. and Shaanxi Land Construction Comprehensive Development Co., Ltd. (equity ratio is 51:49).

6. The business scopes of Shaanxi Provincial Railway Investment Group include construction and operation of railways in Shaanxi Province, planning, design, construction and management of railways, technical consultation, production and operation of railway materials and accessories.

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C. Report Purpose

7. Based on ADB's SPS 2009, this subproject has been classified as environmental Category B and thus an IEE including an EMP is required. This report, including the EMP is prepared following both national regulations and ADB’s environmental safeguard requirements specified in SPS 2009. The EMP is presented in Appendix I.

D. Approach to Report Preparation

8. This report has been prepared based on a domestic FSR; domestic EIA; public consultations led by PIE and assisted by ADB TA consultants; and site visits, surveys and consultations undertaken by PIE and ADB TA consultants; public consultations with key stakeholders and affected persons; and site visits, surveys, consultations undertaken by ADB TA environmental consultants and ADB mission discussions with the EA, PMO, PIE and relevant government agencies.

E. Report Structure

9. The IEE report consists of the executive summary, nine chapters and one appendix. The report consists of the following:

Executive Summary Summarizes the overall situation of the subproject.

I. Introduction Introduces the components of the IEE, the purpose of the report, the method of preparation and the structure.

II. Policy, Legal and Administrative Framework Presents environmental laws and institutional frameworks in the PRC and ADB, development of domestic EIA reports, and applicable environmental policies and standards.

III. Description of the Project Describes the scope, components, location, main features, implementation arrangements, budget and timing of the subproject.

IV. Description of the Environment Introduces relevant natural profiles, current environmental status and socio-economic conditions in the subproject area.

V. Anticipated Environmental Impacts and Mitigation Measures Predicts the environmental impacts of the subproject construction and operation, and propose mitigation measures.

VI. Analysis of Alternatives Presents an analysis of alternatives undertaken to determine the best way of achieving the component objectives while minimizing environmental and social impacts.

VII. Information Disclosure and Public Consultation

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Introduces the procedures and contents of information disclosure, the process of public participation and the results of the survey, and the main ways of public participation in the later phase.

VIII. Grievance Redress Mechanism Describes Grievance Redress Mechanism (GRM) for solving complaints.

IX. Conclusion Presents conclusions drawn from the assessment and recommendations.

Appendix I Appendix I presents the EMP, including required construction and operation phase environmental mitigation measures, EMoP, reporting requirements, and capacity building.

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II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

10. This IEE is prepared on the basis of the national and local environmental legal and institutional framework of the People's Republic of China, environmental assessment requirements, and applicable ADB policies, regulations, requirements and procedures.

A. Applicable ADB Policies, Regulations and Requirements

11. The main applicable policies, regulations, requirements and procedures of ADB environmental assessment include SPS 2009 and Environmental Safeguards — A Good Practical Sourcebook (2012), which provide a basis for the report jointly. SPS 2009 promotes good international practices, as reflected in internationally recognized standards such as the World Bank (WB) Group's Environmental, Health and Safety (EHS) Guidelines.

12. SPS 2009 establishes the environmental examination procedure to ensure the implemented project (as a part of ADB loan aided project) is harmless to the environment and its design meets requirements of applicable laws and regulations, which is unlikely to cause environment, health, society or safety hazards.

13. At an early phase in the project cycle, typically the project identification phase, ADB screens and categorizes proposed projects based on the significance of potential impacts and risks. The environmental category of the project depends on the most sensitive environmental component, including direct, indirect, induced and accumulated impacts. Purposes of project screening and classification include:

(i) Reflect potential environmental impacts of the project;

(ii) Identify the type and level of EIA and institutional resources proportionate to the nature, scale, magnitude and sensitivity of the potential impacts of the proposed project; and

(iii) Confirm requirements of information disclosure and public participation.

14. ADB assigns a proposed project to one of the following categories:

(i) Category A. Proposed project is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented; impacts may affect an area larger than the sites or facilities subject to physical works. A full EIA including an EMP is required

(ii) Category B. Proposed project’s potential environmental impacts are less adverse and fewer in number than those of category A projects; impacts are site- specific, few if any of them are irreversible, and impacts can be readily addressed through mitigation measures. An IEE, including an EMP, is required.

(iii) Category C. Proposed project is likely to have minimal or no adverse environmental impacts. No EIA or IEE is required although environmental implications need to be reviewed.

(iv) Category FI. Proposed project involves the investment of ADB funds to, or through, a financial intermediary.

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15. According to the requirements of SPS 2009, the subproject has been classified as environment category B and thus an IEE is required.

B. PRC Environmental Legal Framework

16. Environmental impact assessment system of the PRC is integrated into the system of environmental protection laws and regulations. Taking provisions of the environmental protection in Constitution of the People's Republic of China as its basis, basic laws of comprehensive links as its core and provisions of relevant laws about the environmental protection as its supplement, the system is a complete and relatively independent system of laws and regulations consisting of mutually related and coordinated environmental protection laws, regulations, rules, standards and international conventions. Laws and regulations applied to the subproject is presented in Table II-1.

Table II-1: Applicable PRC Environmental Laws and Regulations

Year S/N Laws& Regulations Issued/Updated The Environmental Impact Assessment Law 1 of the People’s Republic 2018 of China

2 Environmental Protection Law of the People's Republic of China 2015 Law of the People's Republic of China on the Prevention and Control 3 2018 of Atmospheric Pollution Law of the People's Republic of China on Prevention and Control of 4 2018 Water Pollution Law of the People's Republic of China on the Prevention and Control 5 2016 of Environmental Pollution by Solid Waste Law of the People's Republic of China on Prevention and Control of 6 2018 Pollution from Environmental Noise

7 Law of the People's Republic of China on the Protection of Wildlife 2018

8 Urban and Rural Planning Law of the People's Republic of China 2019

9 Soil Pollution Control Law of the PRC 2019 Regulations on the Administration of Construction Project 10 2018 Environmental Protection 11 Regulations of Wild Plants Protection 2015

12 Regulation of the Protection of Terrestrial Wild Animals 2016

13 Regulation of the Disclosure of Government Information 2019

Notice of the State Council on Issuing Three-year Action Plan to Win 14 2018 Blue Sky Protection Campaign Notice of the State Council on Issuing Action Plan for Prevention and 15 2015 Control of Water Pollution Notice of the State Council on Issuing Soil Pollution Prevention and 16 2016 Control Action Plan

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Regulations of Shaanxi Province on Prevention and Control of Air 17 2019 Pollution Regulations of Shaanxi Province on the Prevention and Control of 18 2019 Environmental Pollution by Solid Waste List of Classified Management of Environmental Impact Assessment 19 2018 for Construction Projects 20 Public Participation Approach to Environmental Impact Assessment 2019 Source: ADB TA consultants

C. PRC Environmental Impact Assessment Framework and Procedures

17. The Law of the People's Republic of China on Environmental Impact Assessment and the Catalogue for the Classified Administration of Environmental Impact Assessments for Construction Projects issued by the former Ministry of Environmental Protection stipulate which projects need to prepare environmental impact reports, which projects need to prepare environmental impact report forms and which projects only need to fill in environmental impact registration forms for filing. The Catalogue regulates:

(i) Category A: projects with significant adverse environmental impacts, for which a full EIA report is required;

(ii) Category B: projects with adverse environmental impacts which are of a lesser degree and/or significance than those of Category A, for which a simplified tabular EIA report is required; and

(iii) Category C: projects unlikely to have adverse environmental impacts, for which an EIA registration form is required.

18. The full EIA for Category A and the tabular EIA report for Category B are similar to the EIA and IEE reports of ADB, respectively. The EIA registration form is similar to the Category C project of ADB.

19. According to the original List of Classified Management of Environmental Impact Assessment for Construction Projects (promulgated on April 9, 2015, Decree No. 33 of the Ministry of Environmental Protection), a full EIA report shall be prepared for the subproject, while according to the modification list of Classified Management Directory of Construction Project Environmental Impact Assessment, (April 28, 2018), a tabular EIA report shall be prepared for the subproject.

20. The Ministry of Ecology and Environment (MEE) has issued a series of technical guidelines for the preparation of environmental impact assessments (Table II-2). These guidelines include guidelines for conducting environmental impact assessments, atmospheric and ambient air quality, noise, surface water, groundwater, ecological and regional biodiversity, biodiversity monitoring, quality management of environmental monitoring and public participation.

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Table II-2: Technical Guidelines for Environmental Impact Assessment in China

S/N Name Year

Technical Guidelines for Environmental Impact Assessment General 1 2016 Principle (HJ2.1-2016); Technical Guidelines for Environmental Impact Assessment-Atmospheric 2 2018 Environment (HJ2.2-2018) Technical Guidelines for Environmental Impact Assessment-Surface 3 2018 Water Environment (HJ2.3-2018) Technical Guidelines for Environmental Impact Assessment- 4 2016 Groundwater Environment (HJ610-2016) Technical Guidelines for Environmental Impact Assessment-Acoustic 5 2009 Environment (HJ2.4-2009) Technical Guidelines for Environmental Impact Assessment-Ecological 6 2011 Impacts (HJ19-2011) Source: ADB TA consultants

D. Domestic EIA Report

21. According to the List of Classified Management of Environmental Impact Assessment for Construction Projects (MEP Decree No. 33), the PIE entrusted a third party EIA institute to prepare the environmental impact report and obtained the approval from Xi’an Ecology and Environment Bureau (EEB, former Xi’an Environmental Protection Bureau) on July 8, 2015 (SH Approval No. [2015] 171) (Figure II-1). Until now, construction of the subproject has not been started. According to the PRC’s Environmental Impact Assessment Law (Amended in 2018), the EIA approval is effectivity for 5 years before the construction of the subproject starts. At the time of the preparation of this report, land leveling of the subproject site is on-going, therefore the EIA approval is effective.

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Figure II-1: Original EIA Approval

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22. In 2019, the PIE changed its original project scope, including (i) the numbers of production lines of loading and unloading yard from two to three, (ii) the heating source from boilers to air conditioning; and (iii) the subproject implementation in two phases and the updated of floor area and total investment.

23. According to PRC’s Environmental Impact Assessment Law, any major changes in project scope must be reported to the original EIA approval authority and a new or updated domestic EIA must be submitted for approval again. On December 17, 2019, the PIE submitted a document to introduce the changes in scope to the Xi’an EEB (STTWLF [2019] No. 46) for approval. On December 20, 2019, Xi’an EEB made an official response (Figure II-2) to the PIE and confirmed that the changes in the subproject scopes were not major changes and the original domestic EIA was still effective.

Figure II-2: Response to the subproject changes in scope by Xi’an EEB E. Related International Agreements

24. China has signed a series of international agreements about environmental and ecological protection. Table II-3 listed potential agreements that may be applied to the subproject.

Table II-3: International Agreements

S/N Agreements Year 1 Convention on Biological Diversity 1993 2 United Nations Framework Convention on Climate Change 1994 United Nations Convention to Combat Desertification in Severe Drought 3 1996 and/or Desertification Countries

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S/N Agreements Year 4 Kyoto Protocol 2002 5 Paris Climate Agreement 2015 6 Stockholm Convention on Persistent Organic Pollutants 2004 7 Minamata Convention on Mercury 2017 Convention Concerning the Protection of the World Cultural and Natural 8 1986 Heritage Source: ADB TA consultants

F. Applicable PRC Environmental Standards

25. Environmental standards consist of environmental quality (ambient) standards applicable to the receiving environment and emission standards applicable to the pollution source. The former includes standards for ambient air quality, noise and vibration, surface water, groundwater, soil, etc. The latter includes standards for integrated wastewater discharge, waste gas emission, etc.

Table II-4: Applicable PRC Environmental Standards

S/N Standards Code/Date

1 Ambient Air Quality Standards GB 3095-2012 2 Environmental Quality Standards for Surface Water GB 3838-2002 3 Environmental Quality Standards for Noise GB 3096-2008 4 Integrated Emission Standards of Air Pollutants GB 16297-1996 5 Emission Standards of Cooking Fume GB18483-2001 The Reuse of Urban Recycling Water-Water Quality Standards for 6 GB/T18920-2002 Urban Miscellaneous Water Consumption 7 Integrated Wastewater Discharge Standards GB 8978-1996 8 Wastewater Quality Standards for Discharge to Municipal Sewers GB/T31962-2015 Emission Standards of Environmental Noise for Boundary of 9 GB 12523-2011 Construction Site 10 Emission Standards for Industrial Enterprises Noise GB 12348-2008 Emission Standards and Measurement Methods of Railway Noise at 11 GB12525-90 the Boundary alongside Railway Line 12 Standards of Vibration in Urban Environment GB 10070-88 13 Technical Specifications for Division of Acoustic Functional Areas GB/T 15190-2014 Source: ADB TRTA Consultant and domestic EIA report.

26. As noted above, ADB's SPS 2009 requires borrowers to comply with environmental standards of good international practice as reflected in internationally accepted standards (such as the World Bank Group's EHS Guidelines). When the regulations of the host country differ from these levels and measures, the borrowing country shall meet more stringent standards. In view of the specific circumstances of the project, if less stringent standards or measures are

17 appropriate, the borrower/client needs to justify any proposed alternatives. The evaluation uses PRC standards and EHS guidelines, as described below.

1. Ambient Air Quality Standards

27. The current PRC Ambient Air Quality Standards (GB3095-2012) divides the functions of ambient air into two categories: the first category refers to natural reserves, scenic spots and other areas that require special protection; the second category refers to residential areas, mixed areas of commercial, traffic and residential functions, cultural areas, industrial areas and rural area. The first category implements the Class I standard, and the second category implements the Class II standard. This subproject is located in the urban industrial zone, which belongs to the second category, therefore Class II standard is implemented.

28. The Air Quality Guidelines of the World Health Organization (WHO) are recognized international standards and adopted by the World Bank Group's EHS Guidelines. In addition to the guidance, WHO sets medium-term targets for each pollutant as incremental targets for the gradual reduction of air pollution. The WHO guidelines and corresponding PRC standards are set out in Table II-5.

Table II-5: PRC Ambient Air Quality Standards and WHO Ambient Air Quality Guidelines Unit: μg/m3 PRC Ambient Air Quality WHO/EHS Guidelines Air Quality Averaging Standard parameter period Interim Air quality Class I Class II Targets guideline Annual 80 200 NA NA TSP 24-hour 120 300 NA NA

Annual 40 70 30-70 20 PM10 24-hour 50 150 75-150 50

Annual 15 35 15-35 10 PM2.5 24-hour 35 75 37.5-75 25

Annual 20 60 NA NA

SO2 24-hour 50 150 50-125 20

1-hour 150 500 NA NA

Annual 40 40 NA 40

NO2 24-hour 80 80 NA NA

1-hour 200 200 NA 200

24-hour 100 160 160 100 O3 8-hour 160 200 NA NA

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24-hour 4,000 4000 NA NA CO 1-hour 10,000 10000 NA NA Source: ADB TA consultants

29. It can be observed from Table II-5 that: for TSP and CO, there are PRC standards, but no corresponding WHO guidelines; for PM10 and PM2.5, PRC Class II annual average and 24-hour average standards meet WHO Interim IT-1 guidelines; for SO2, WHO only has a 24-hour average 3 3 guideline (125 μg/m ), which is slightly lower than the PRC standard (150μg/m ). However, SO2 levels are low in the component area, and the component will only contribute low levels of SO 2, so the very minor difference is inconsequential. For NO2, there is no WHO 24-hour average guideline; and the 1-hour average PRC standard is equivalent to the WHO guideline. For O3, the PRC class I 1-hour average standard is equivalent to the WHO 1-hour average guideline and PRC 24-hour average class II standard is equivalent to the WHO Interim guideline 1 (IT-1).

30. Overall, the PRC standards show a high degree of equivalency to the WHO guidelines or IT-1 values and are adopted for use in this report except 24-hour average SO2 WHO guideline value.

2. Air pollutant discharge standards

31. During the construction stage, the dust emission shall meet the requirements in the Limit of Fugitive Dust Emissions from Construction Site (DB61/1078-2017, Table II-6), the exhaust gas emission during the operation phase shall comply with the Class II standard of Integrated Emission Standards for Air Pollutants (GB16297-1996, Table II-7), and the cooking fume from canteens shall comply with the Emission Standards of Cooking Fume (GB18483-2001, Table II- 8).

Table II-6: Emission Limits of Dust at Construction Site Boundary Hourly average Construction S/N Contamination Monitoring point concentration stage limit (mg/m3) Demolition, earthwork and 1 ≤0.8 Construction dust Location outside foundation (i.e. total the perimeter with treatment works suspended the maximum particulate TSP) concentration Foundation, main 2 structure and ≤0.7 decoration works The location outside the perimeter with the maximum concentration is generally be set within 10m outside the site boundaries in downwind direction of the fugitive emission source. If the distance between the emission source and the location with the maximum concentration is more than 10m, the monitoring point can be moved to the location with the estimated maximum concentration Source: ADB TA consultants

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Table II-7: Air Pollutant Emission Standards during Operation Phase

Contamination PM SO2 NOx

Limit of fugitive emission (mg/m3 ) 1.0 0.4 0.12 Source: ADB TA consultants

Table II-8: Emission Standard of Cooking Fume Small Medium Large Number of ovens is Capacity Number of ovens Number of ovens is less than 6 and no is less than 3 no less than 6 less than 3 Emission concentration 2.0 (mg/m3) Minimum cooking fume 60 75 85 removal efficiency (%)

3. Wastewater Emission Standards

32. The EHS Guidelines indicate that wastewater discharged to public or private wastewater treatment systems should: i. meet the pretreatment and monitoring requirements of the sewer treatment system into which it discharges; ii. not interfere, directly or indirectly, with the operation and maintenance of the treatment systems, or pose a risk to worker health and safety, or adversely impact characteristics of residuals from wastewater treatment operations; and iii. be discharged into municipal or centralized wastewater treatment systems that have adequate capacity to meet local regulatory requirements for treatment of wastewater generated from the subproject.

33. Domestic wastewater generated by the subproject will be pretreated by the septic tank and discharged to the municipal sewage system. The wastewater discharges by the subproject will be required to meet Class III maximum acceptable concentrations (MACs) in Integrated Standards for Wastewater Discharge (GB8987-1996), and the Wastewater Treatment Plant (WWTP) discharges are required to meet Class 1A of Discharge Standard of Pollutants for Municipal WWTPs (GB 18918-2002). The Standards are shown in Table II-9.

Table II-9: Integrated Standards for Wastewater Discharge (Excerpt) Unit: mg/m3 Maximum acceptable concentration (MAC) mg/L No. Pollutant Class III

1 pH 6-9

2 SS 400

3 COD 500

4 BOD5 300

5 Petro 20

6 Animal and vegetable oil 100 Source: ADB TA consultants.

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4. Surface Water

34. PRC’s Surface Water Ambient Quality Standard (GB3838-2002) defines five water quality categories for different environmental functions. For example, Category I is the best, such as water at sources of rivers and National Nature Reserves. Category V is the worst, suitable only for agricultural and scenic water uses. Based on information collection and site visit, Category V water quality standards (see Table II-10) is applicable for the surface water near the subproject site. There are no applicable EHS guidelines or targets for water quality in this context, and the PRC standard is adopted for use in this IEE report.

Table II-10: Applicable surface water standards Unit: mg/l Water Quality Category No. Parameter I II III IV V

1 pH 6-9 6-9 6-9 6-9 6-9

90% 2 Dissolved Oxygen saturation ≥6 ≥5 ≥3 ≥2 or ≥7.5

3 CODMn ≤2 ≤4 ≤6 ≤10 ≤15

4 CODCr ≤15 ≤15 ≤20 ≤30 ≤40

5 BOD5 ≤3 ≤3 ≤4 ≤6 ≤10

6 NH3-N ≤0.15 ≤0.5 ≤1.0 ≤1.5 ≤2.0

TP ≤0.02 ≤0.1 ≤0.2 ≤0.3 ≤0.4

7 For lakes and ≤0.01 ≤0.025 ≤0.05 ≤0.1 ≤0.2 reservoirs TN (N for lakes and 8 ≤0.2 ≤0.5 ≤1.0 ≤1.5 ≤2.0 reservoirs)

9 Copper ≤0.01 ≤1.0 ≤1.0 ≤1.0 ≤1.0

10 Zinc ≤0.05 ≤1.0 ≤1.0 ≤2.0 ≤2.0

11 Fluoride ≤1.0 ≤1.0 ≤1.0 ≤1.5 ≤1.5

12 Selenium ≤0.01 ≤0.01 ≤0.01 ≤0.02 ≤0.02

13 Arsenic ≤0.05 ≤0.05 ≤0.05 ≤0.1 ≤0.1

14 Total Mercury ≤0.00005 ≤0.00005 ≤0.0001 ≤0.001 ≤0.001

15 Cadmium ≤0.001 ≤0.005 ≤0.005 ≤0.005 ≤0.01

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Hexavalent 16 ≤0.01 ≤0.05 ≤0.05 ≤0.05 ≤0.1 Chromium

17 Lead ≤0.01 ≤0.01 ≤0.05 ≤0.05 ≤0.1

18 Cyanide ≤0.005 ≤0.05 ≤0.2 ≤0.2 ≤0.2

19 Volatile Phenol ≤0.002 ≤0.002 ≤0.005 ≤0.01 ≤0.1

20 Sulfide ≤0.05 ≤0.1 ≤0.2 ≤0.5 ≤1.0

21 Petroleum ≤0.05 ≤0.05 ≤0.05 ≤0.5 ≤1.0

22 Anionic surfactant ≤0.2 ≤0.2 ≤0.2 ≤0.3 ≤0.3

23 Coliforms ≤200 ≤2000 ≤10000 ≤40000 ≤40000

CODMn = permanganate index; CODcr = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NH3-N= ammonia nitrogen; TP = Total Phosphorus; TN = Total Nitrogen. Source: PRC GB3838-2002.

5. Ground Water

35. PRC’s Groundwater Water Ambient Quality Standard (GB/T14848-2017) also defines a number of water quality categories for different environmental functions. As shallow groundwater near the subproject site is primarily used for irrigation, the Category III standard is applicable (Table II-11). There is no equivalent standard recommended in the EHS Guidelines, and the PRC standard is adopted for use in this IEE report.

Table II-11: Applicable Groundwater Standards No. Parameter Unit Category III Standard

1 pH - 6.5-8.5

2 CODMn mg/l 3.0

3 Sulfate mg/l 250

4 Chloride mg/l 250

5 Volatile Phenols mg/l 0.002

6 Total hardness (CaCO3) mg/l 450

7 Nitrate NO3- mg/l 20

8 Nitrite NO2- mg/l 1.0

9 NH3-N mg/l 0.5

10 Molybdenum mg/l 0.2

11 Cyanide mg/l 0.05

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No. Parameter Unit Category III Standard

12 Cadmium mg/l 0.005

13 Chromium VI mg/l 0.05

14 Arsenic mg/l 0.01

15 Zinc mg/l 1.0

16 Fluoride mg/l 1.0

17 Lead mg/l 0.01

18 Iron mg/l 0.3

19 Manganese mg/l 0.1

20 Copper mg/l 1.0

21 Selenium mg/l 0.01

22 Benzene mg/l 0.01

23 Methylbenzene mg/l 0.7

24 Total coliforms /L 3.0

25 Colony forming unit /L 100

26 Mercury mg/l 0.001

27 Total dissolved solid mg/l 1000

CODMn = permanganate index; CODcr = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NO3- = Nitrate; NO2- = Nitrite; NH3-N= ammonia nitrogen; TP = Total Phosphorus; TN = total nitrogen. Source: PRC GB/T14848-2017.

6. Environmental Quality Standards for Noise

36. The comparison between the national standards (GB3096-2008) and the relevant international standards on acoustic environment is shown in Table II-12. The standards are not directly comparable, but the Class 1 national standard is equivalent to the Class I of the WHO standard and the class 2 and class 3 PRC standard are more stringent than Class II of the WHO standard. The east boundary of the freight yard is located within the range of 30-60m outside the center line of the Xi-kang Railway line, therefore Class 4a PRC standards is applied for the east boundary. The rest of site boundaries are located in Class 2 area and PRC Class 2 standard is applied.

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Table II-12: Acoustic Environment Quality Standards Unit: dB (A) International standard 1h National standard Leq dB(A) Leq dB(A) Comparison Daytime Nighttime Daytime Nighttime Category 06-22h 22-06h 07-22h 22-07h 0: Areas needing extreme quiet, such as special health 50 40 zones 1: acoustic environment functional area: refers to the area where residential, medical and health, cultural and sports, scientific research 55 45 and design, administrative office are the main functions, therefore it is necessary to keep quiet for all. There is no direct 2: acoustic environment comparability functional zone: refers to the between the area where the main functions WHO Grade WHO Grade two are commercial finance and I: Housing, I: Housing, standards, market trade, or mixed area of 60 50 Institution, Institution, but the PRC commercial, traffic and Education: Education: Class 2 residential functions, therefore 55 45 standard is it is necessary to keep quiet more for the residential area. WHO Grade WHO Grade stringent than 3: acoustic environment II: Industrial, II: Industrial, the WHO functional zone: refers to the Commercial: Commercial Class II area where industrial 70 70 standard. production, warehousing and The national logistics are the main 65 55 standards is functions, therefore it is used in the necessary to prevent report. industrial noise from seriously affecting the surrounding environment. 4a: acoustic environment functional zone: refers to the area within a certain area on both sides of the railway line, 70 55 therefore it is necessary to prevent traffic noise from seriously affecting the surrounding environment. Source: ADB TA consultants

7. Noise Emission Standards

37. The noise from freight yard during the operation phase will meet the Class 2 and Class 4a (east boundary) standards of the Noise Emission Standards for Industrial Enterprises at Site Boundary (GB 12348-2008). Noise from the special railway line will meet the standards of Emission Standards and Measurement Methods of Railway Noise on the Boundary alongside Railway Line (GB12525-90).

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Table II-13: Noise Emission Standards during Operation Unit: dB (A)

Area name Executive standard Category Daytime Nighttime

Emission Standard for Industrial Class 2 60 50 Yard boundary Enterprises Noise at Boundary (GB12348-2008) Class 4a 70 55 Modification scheme of Emission Special railway Standards and Measurement Methods Newly-built 70 60 line of Railway Noise on the Boundary alongside Railway Line (GB12525-90) Source: ADB TA consultants

38. The noise during the construction phase shall comply with the Noise Emission Standards at Construction Site Boundary (GB12523-2011).

Table II-14: Noise Emission Standards at Construction Site Boundary Unit: dB (A)

Daytime Nighttime

70 55 Source: ADB TA consultants

8. Vibration

39. The subproject will have vibration impacts to the residential area along the subproject. The vibration will meet related the requirements for mixed area in Standards of Environmental Vibration of Urban Area (GB10070-88).

Table II-15: Standard for Environmental Vibration at Vertical Direction

Standard limit Applicable zone Unit Daytime Nighttime

Mixed area dB 75 72 Source: ADB TA consultants

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III. PROJECT DESCRIPTION

A. The Project

40. The subproject will build a rail-road multimodal bulk commodity logistics park and have two components including a railway warehouse and logistics area and a special railway line area (a departure and arrival yard and a loading and unloading yard) as well as supporting public utilities. The subproject will improve the capacity of freight transport organizations in the south of Xi’an and reduce the environmental impacts from road transportation replaced by railway transportation. The subproject has an area of 326,973.33 m2, and a floor area of 42,923.57m2.

B. Project Location

41. The subproject will be located at located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City (Figure III-1). A LNG emergency reserve center is 60 m away from the warehouse and logistics area in the east, while Xi’an South Railway Station is 480m away in the southeast. The west boundary of the railway warehouse and logistics area is close to farmland and Fengqi Mountain Cemetery. The nearest sensitive receptors of the special railway line area is Gaozhai Village, which is 100m away in the east. The nearest sensitive receptors of the departure and arrival yard is Xinzhuang Village, which is 15 m away in the east

Figure III-1: Subproject Location

C. Project Rational

42. With the promotion of national and regional strategies such as Guanzhong Plain Urban Agglomeration Development Plan and China (Shaanxi) Pilot Free Trade Zone, Xi'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region.

26

43. Xi’an has a well-developed railway, highway and aviation transportation network, and has become an important hub in northwest China. At present, Xi’an has air routes to all provincial cities in China. There are direct flights from Xi'an to many major cities in Asia, including Bangkok, Busan, Fukuoka, Hong Kong, Kuala Lumpur, Manila, Osaka, Sapporo, Singapore Seoul, and Taipei. As a tourist city, Xi'an has built expressways to Lintong, Tongchuan and Baoji, with well- maintained roads to famous scenic spots in suburban counties and to the north slope of the Qinling Mountain. The National Expressway G108, 210, 211 and 312 passes through Xi’an City and of Xi’an City has a good highway transportation condition. Xi’an is classified as International Comprehensive Transport Hub by National Development and Reform Commission in 2018.

44. As a developing logistics park, Xi’an South Railway Station Logistics Park will provide more transportation service in the future with the development of Xi’an. The subproject will build a rail-road multimodal bulk commodity logistics park to provide railway transportation service to Xi’an. Implementation of the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel emissions of atmospheric pollutants such as NOx, PM2.5, and CO2.

D. Project Scope

45. The components of the subproject are presented in Table III-1.

Table III-1: Subproject Components

Item Construction content Combined transportation area of highway and railway: covering an area of 70,865.56 m2 including bulky container operation area (2 railway loading and unloading lines), container yard, empty container yard, container loading and unloading yard, cargo yard, car inspecting and repairing shed (only for simple maintenance of freight vehicles and cargo handling vehicles such as tire change, tire repair, tire inflation, Warehouse and engine oil change, etc., vehicle cleaning, painting etc. are logistics area (floor excluded) area is Warehousing area: it covers an area of 41,032.50m2 and a 42923.57m2) floor area of 18,225.00m2. It has three warehouses and one open warehousing yard. It is mainly for goods storage and Main work goods refrigeration is not involved. Comprehensive supporting area: it covers an area of 23,326.23m2 and a floor area of 24,698.57m2. It includes one comprehensive office building, two dormitories and one canteen. One loading and unloading yard is located in the cargo yard and includes one container loading and unloading line and one bulky goods loading and unloading line. Both lines have an Special railway line effective length of 514m. area One arrival-departure yard with three arrival-departure tracks (main tracks involved). All tracks have an effective length of 1,050m.

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The special railway line connects the Xi’an South Railway Station and the warehouse and logistics area in a curve with a radius of 1,200m. The special railway line is located at the northwest of the warehouse and logistics area. A arrival- departure yard is located at the north of the warehouse and logistics area with a load and unload yard in the south. The length of the special railway line is 1.962 km. Includes roadbed and bridge and culvert engineering such as Railway line slope protection engineering, retaining wall engineering, engineering foundation treatment engineering, etc. Railway-enterprises direct transportation model will be the operation model of the subproject. The electric trains for goods transportation between the subproject and Xi’an South Locomotive Railway Station is managed and operated by Xi’an South operation Railway Station. An internal combustion shunting locomotive equipment is utilized for transportation of carriages with goods between arrival-departure yard and warehouse and logistics area.

Auxiliary work Internal combustion forklift, truck crane and gantry crane, are used for loading and unloading. The subproject is equipped Vehicle equipment with two 35m high gantry cranes, one truck crane and seven internal combustion forklifts. Direct telephone communication system is installed between Communication operation room of Xi’an South Railway Station and duty room system of warehouse and logistics area with HYAT2310X2X0.5 plastic direct buried cable . The freight management information system is installed in the railway warehouse and logistics area with the functions of Information system freight ticketing, freight planning, 2 statistics and analysis of train transportation data and other supporting equipment (including computer, printer, uninterrupted power supply, etc.). The water is supplied by the south water supply plant inside Water supply the park, The plant has a daily water supply of 5,000 m3 and system can meet the demand of the subproject. After oil separation treatment, the canteen wastewater will be discharged into septic tank combined with domestic Drainage system wastewater. Then all the wastewater will be discharged to Public utilities municipal sewage system and finally treated in Wastewater treatment plant (WWTP) of Yinzhen Town. Heating and Central air conditioning system is used cooling The newly increased electrical loads are from unloading and Power supply loading yard, warehouse lighting, and gantry cranes. The high- system voltage power is supplied from Yinzhen Power Supply Bureau. Waste water One oil separator and one 30 m3 septic-tank. Environmental protection Cooking fume from the canteen is treated with a cooking fume engineering Cooking fume removal equipment with an exhaust air volume no less than 8,000 m3/h and then discharged by flue pipe.

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Domestic waste bins are provided in the subproject sites and one centralized wastewater collection point will be built. Four kitchen waste collection bins and two waste oil collection Solid waste bins are provided. Four hazardous waste collection bins, one leak and overflow proof tray and one hazardous waste temporary storage room. Low-noise trains will be selected and noise reduction measures will be implemented such as foundation damping of Noise track, regular maintenance of rail track, improvement of transportation management. Damping wheel or trains with special tread wheel and low axle Vibration load will be selected for vibration control and regular maintenance of rail rack. There is no diesel storage tank on the site. The diesel used for Risk the diesel locomotive is supplied by the diesel fueling vehicle from contracted diesel supply companies. Greening area of the subproject is 32,698.97m2 with a Greening greening rate of 10% Source: Domestic EIA

46. North of the subproject is the arrival-departure yard with three arrival-departure lines (main tracks involved), and the south is the railway warehouse and logistics area. An entrance is located at the south of the railway warehouse and logistics yard and a loading and unloading yard (2 freight lines) is at the middle. One canteen, two dormitory buildings and one comprehensive office building are at the south-east of the subproject site. 3 warehouses, container areas, warehouse yards, truck parking areas, car inspecting and repairing shed are at the west side from north to south. The subproject layout is presented in Figure III-2.

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Figure III-2: Subproject Layout

30

47. Detailed design information of the special railway line such as design operation year, type of arrival-departure goods and transportation organization is presented below :

(i) Design operation year: 2025

(ii) Type of arrival-departure goods. The main arrival-departure goods include arrival bulky goods, and departure goods are small in quantity. The types of bulky goods include steel, wood, containers (stone, construction materials, fast moving consumer goods, household appliances, etc.). Harmful, flammable, explosive and other dangerous chemicals are not involved.

(iii) Train flow. The designed arrival-departure train flow in 2025 is 4.0 pairs per day.

(iv) Transportation mode. The electric trains for goods transportation between the subproject and Xi’an South Railway Station will be managed and operated by Xi’an South Railway Station. An internal combustion shunting locomotive is utilized for transportation of carriages with goods between arrival-departure yard and warehouse and logistics area. Then gantry crane and truck cranes will be utilized for unloading and loading. ,

(v) Transportation characteristics. Arrived trains are mainly full, and departure trains are mainly empty.

(vi) Estimated freight transport volume. The arrival-departure freight volume in 2025 is estimated to be 1.74 million tons, including 1,630,000 tons of arrival goods and 110,000 tons of departure goods. Detailed information is presented in Table III-2.

Table III-2: Cargo Receiving-departure Schedule unit: 10,000 tons

Volume of freight transport Operating area Goods type (2025)

Arrival Departure Bulky goods Timber/steel, etc. 86 / Stone, construction materials, quick Container consumer products, home appliances, 77 11 etc. Total arrival/departure volume 163 11

Total 174 Source: Domestic EIA

48. Main technical indicators of special railway line is presented in Table III-3.

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Table III-3: Main Technical indicators of the special railway line

Technical indicators Description

Railway grade Grade IV

Number of main tracks Single

Minimum curve radius 1,200m

Type of traction Electric traction

Traction tonnage 5000t

Type of locomotive HXD1, HXD2 Effective length of 1,050m arrival-departure track Limiting gradient 16‰ The electric trains for goods transportation between the subproject and Xi’an South Railway Station will be managed and operated by Railway Station. An internal combustion shunting Operation Xi’an South locomotive is utilized for transportation of carriages with goods model between arrival-departure yard and warehouse and logistics area. Then gantry crane and truck cranes will be utilized for unloading and loading. Source: Domestic EIA

49. Main construction contents of special railway line:

(i) Railway line. The special railway line connects the Xi’an South Railway Station and warehouse and logistics area in a curve with a radius of 1,200m. The special railway line is located at the northwest of the warehouse and logistics area. A arrival-departure yard is located at the north of the warehouse and logistics area with a load and unload yard in the south. The length of the special railway line is 1.962 km.

(ii) Main construction contents. One arrival-departure yard with three arrival- departure tracks (main tracks involved). All tracks have an effective length of 1,050m. One loading and unloading yard is located in the cargo yard and includes one container loading and unloading line and one bulky goods loading and unloading line. Both lines have an effective length of 514m. Internal combustion forklift, truck crane and gantry crane are used for loading and unloading. The subproject is equipped with two 35m high gantry cranes, one truck crane and seven internal combustion forklifts.

(iii) Track. 50kg/m new steel track with a length of 25m will be utilized as main tracks and station tracks.

(iv) Sleepers and fasteners. Reinforced concrete type II sleepers (1,680 sleepers per km) are used for the main tracks, and reinforced concrete new type II sleepers

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(1,600 sleepers per km) are used for the station tracks. Elastic strip type I fasteners are used for both main tracks and station tracks.

(v) Ballast bed. Main track: double-layer gravel ballast is adopted. The thickness of surface ballast and bottom ballast are both 20cm. Station track: single-layer gravel ballast with a thickness of 35 cm is adopted and ballast is used for fill and level up at station throat and the gas between station tracks. Turnout area: the thickness, width and slope of the ballast bed should be consistent with the tracks connected with the ballast bed. The difference in the thickness of the ballast bed caused by the concrete turnout sleepers should be addressed by making a slope in a range of 30m at front and back for the turnout.

(vi) Roadbed. The width of single-track soil embankment is 6.8m, the width of cutting is 6.4m, and the width of hard rock cutting is 6.4m. The thickness of subgrade bed is 1.2m, the thickness of the surface layer is 0.5m, and the thickness of the bottom layer is 0.7m. 4% herringbone drainage slopes shall be installed at the top of the bottom layer of subgrade bed and the top of the fillings below the subgrade bed.

(vii) Protection of the subgrade slope. Protection of the subgrade slope of main tracks is presented in Table III-4. Gravity retaining wall + framework are used for slope protection at the bumping block of the special railway line, with a length of 23m.

Table III-4: List of Subgrade Slope Protection Engineering

S/N Starting point Endpoint Location Protection method

1 AK0+000.00 AK0+170.00 Unilateral Planting shrub grass

2 AK0+170.00 AK0+490.00 Bilateral Planting shrub grass

3 AK0+490.00 AK0+750.00 Bilateral Planting shrub grass

4 AK0+750.00 AK0+995.00 Bilateral Planting shrub grass

5 AK0+995.00 AK1+047.00 Right Gravity retaining wall + framework

6 AK1+047.00 AK1+210.00 Bilateral Planting shrub grass or framework

7 AK1+210.00 AK1+350.00 Bilateral Gravity retaining wall +framework

8 AK1+350.00 AK1+830.00 Bilateral Planting shrub grass or framework

9 AK1+830.00 AK1+890.00 Bilateral Gravity retaining wall + framework

10 AK1+890.00 AK1+962.00 Right Gravity retaining wall + framework Source: Domestic EIA

50. Bridge and culvert engineering. Three frame culverts are built along the special railway line, including two new frame culverts with a total length of 40m and a top area of 216 m2, one advancing frame culvert with a length of 7m and a top area of 33.6m 2.

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Table III-5: Major Bridge and Culvert Engineering

Hole Culvert Central S/N diameter Type Functions length Top area (m2) Remarks point (m) (m) Frame Grade 1 K51+316 1~4.0m 7 33.6 culvert separation Advancing Frame Flood Newly- 2 AK1+160 1~4.0m 20 96 culvert drainage built Grade Frame separation Newly- 3 AK1+486 1~5.0m 20 120 culvert and flood built discharge Source: Domestic EIA

51. Temporary works. The construction camp is located in the northeast corner of the warehouse and logistics yard. Construction materials are stacked in the warehouse and logistics yard. There is no borrow area. The earthwork is used for land leveling of the site, and no spoil will be generated. The construction roads will utilize the existing country roads without new construction.

52. Resettlement. The subproject will not result in any involuntary land acquisition, resettlement or physical displacement during construction phase.

E. Implementation Arrangements

53. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. Shaanxi Provincial Railway Investment Group will be the subproject implementation entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers.

F. Due Diligence for Associated and Existing Facilities

54. Due diligence was conducted to determine the presence and extent of associated and/or existing facilities at the project sites. Associated facilities are those which are not funded by the project and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project (SPS 2009: 31). The subproject does not include any associated facilities.

55. The subproject-funded facilities will be located and constructed within existing undeveloped construction lands. Existing facilities and associated facilities of the subproject are not identified. The subproject facilities will depend on existing municipal services for domestic water sources, and for disposal of wastewater and solid waste.

56. Water supply. The subproject will source domestic water from municipal water supply system from Xi’an Chang’an District Water Supply Plant which sources water from groundwater. Domestic EIA was approved in September 2002 (capacity 50,000 m3/day) and no compliance

34 issues have been documented.

57. Wastewater treatment. Wastewater of the subproject will comprise domestic sewage (staff), which will be discharged to the Xi’an Chang’an District Waste Water Treatment Plant (WWTP). Domestic EIA was approved in November 2007 (capacity 100,000 m3/day), and no compliance issues have been documented.

58. Solid waste management. The subprojects will generate domestic waste, kitchen waste, oily waste and production waste during operation. Domestic waste will be collected by the local sanitary departments and treated at Xi’an Lantian waste incineration plant (EIA approved May 2017; capacity 2,250 ton/day). The waste package materials will be sold to manufactures for recycling. Kitchen waste will be collected, transferred and disposed by a certificated third-party company. Oily waste will be collected, transported and treated by a certified third-party hazardous waste treatment company. Besides, a temporary hazardous waste storage will be built.

59. The due diligence confirms that all municipal facilities : (i) are operating in accordance with approved domestic EIAs and management plans; and (ii) for the water supply plant, landfill site, and WWTP, have the capacity to meet the project requirements. No past or present concerns related to impacts on the environment were identified. Based on this information, the due diligence described here is concluded to be adequate per ADB’s SPS requirements.

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IV. DESCRIPTION OF THE ENVIRONMENT

A. Location

60. The subproject is located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City, Shaanxi Province.

B. Shaanxi Province Overview

61. Shaanxi Province is located in the northwestern part of China between 105°29~111°15 east longitude and 31°42-39°35 north latitude. Shaanxi is generally long from north to south and narrow from east to west. The distance from north to south is about 880 km and from east to west is about 160-490 km. The province runs across two major river basins-Yellow River Basin and Yangtze River Basin. It is bordered by the Autonomous Region to the north, province to the east, and Hubei provinces to the southeast, municipality and Sichuan province to the south, Gansu province to the west, and the Hui Autonomous Region of Ningxia to the northwest. The Yellow River constitutes Shaanxi’s entire eastern border with Shanxi. Shaanxi is an important portal connecting New Eurasian Continental Bridge to northwest, southwest, north, and central China. Shaanxi is the province with the largest number of neighboring provinces in China. The easternmost point of Shaanxi Province is located in Huangpu Town, of Yulin City, the westernmost point is in Qingmuchuan Town, of City, the southernmost point is in Huaping Town, Zhenping County of City, and the northernmost point is in Gucheng Town and Fugu County of Yulin City.

62. Shaanxi is divided into ten prefecture-level divisions including one sub-provincial city- Xi’an. The ten prefecture-level divisions are subdivided into 30 prefecture-level cities, six county- level divisions and seventy-one counties.

63. In 2019, the population of the province was 38.76 million. The land area is 205,600 km2. In 2019, Shaanxi’s GDP was CNY 2,579.317 billion, of which the primary sector accounted for 7.8% or CNY 199.093 billion; the secondary sector accounted for 46.4% or CNY 1,198.075 billion; and the tertiary sector accounted for 45.8% or CNY 1,182.149 billion.

64. Due to its large span in latitude, Shaanxi has a variety of climates. Under the Köppen climate classification, the northern parts, including the Loess Plateau, have either a cold arid or cold semi-arid, with cold and very dry winters, dry springs and autumns, and hot summers. The area known as Guanzhong is mostly semi-arid, though there are a few areas with a humid subtropical climate, with cool to cold winters, and hot and humid summers that often see early- season heatwaves. The southern portion is much more humid and lies in the humid subtropical zone, with more temperate winters and long, hot and humid summers. Annual mean temperature is roughly between 8 to 16°C, with January temperatures ranging from −11 to 3.5°C and July temperatures ranging from 21 to 28°C.

65. Shaanxi is considered one of the cradles of Chinese civilization. Thirteen feudal dynasties established their capitals in the province during a span of more than 1,100 years, from the Zhou Dynasty to the Tang Dynasty. The province's principal city and current capital, Xi'an, is one of the four great ancient capitals of China and is the eastern terminus of the Silk Road, which leads to Europe, the Arabian Peninsula and Africa. Under the Han Dynasty, the Northern Silk Road was expanded to advance exploration and military purposes to the west. This Northern Silk Road is the northernmost of the Silk Roads and is about 2,600 km in length. It connected the ancient

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Chinese capital of Xi'an to the west over the Wushao Ling Pass to Wuwei and emerging in before linking to ancient Parthia.

66. Shaanxi has abundant biological resources and outstanding diversity. Qinling and Bashan mountains are known as "biological gene bank". The diversity of ecosystems, species, and genetic genes in Shaanxi is typical and representative in China and even in East Asia. The province's forest land area is 12.26665 million hectares which ranks 10th in the PRC and the forest area is 8.533332 million hectares which ranks 11th in the PRC. The living wood growing stock in Shaanxi is 424 million m3, ranking 11th in the PRC. Natural forests are mainly distributed in Qinling, Bashan, Guanshan, Huanglong Mountain and Qiaoshan mountains. The grasslands belong to temperate grasslands and mainly distributed in . The wildlife resources are abundant in Shaanxi. There are 604 species of terrestrial vertebrates and 380 species of birds. Among them, 16 species including panda, golden monkey, takin, and cymbals are listed as national first-class protected wilds animals.

C. Xi’an City Overview

67. Xi'an, named Chang’an and Haojing in the ancient time, is the capital city of Shaanxi Province, an important central city of west, and an important national research, education and industrial base. Xi’an, as one of China's four ancient capitals, has been listed as “World Historic City" by UNESCO since 1981, and selected as one of the world's top ten ancient capitals by American media. Xi'an City is located in the Guanzhong basin at the central Weihe River basin between 107.40°~109.49° east longitude and 33.42°~34.45° north latitude. It borders the Weihe River and the Loess Plateau in the north and the Qinling Mountain in the south. Its east is bounded by the Linghe River and the Wuyuan Mountain, and connected with Huaxian County, City, Shangzhou City and . Its west is bounded by Taibai Mountain and Qinghua Loess Platform, bordering Meixian County and . Its main ridge of the North Qinling Mountain is bordered by , and . It stretches to the Weihe River in the north, crosses the Weihe River in the northeast, and borders City, as well as Sanyuan, Jiangyang, , Wugong, Fufeng and Fuping Counties (Cities). It is about 204 km long from east to west and about 116km wide from north to south. The total area is 9,983 km2, of which the urban area is 1,066 km2.

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Figure IV-1: Xi’an City in Shaanxi Province

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68. In 2019, gross domestic product (GDP) of Xi'an was 932.119 billion yuan, of which the primary sector accounted for 3.0% or CNY 27.913 billion; the secondary sector accounted for 34.0% or CNY 316.744 billion; and the tertiary sector accounted for 63.0% or CNY 587.462 billion. Yuan. The GDP per capita was 92,256 CNY.

69. Location and Topography. Xi'an lies on the Guanzhong Plain in the south-central part of Shaanxi province, and on a flood plain created by the eight surrounding rivers and streams. The city has an average elevation of 400 metres above sea level and an annual precipitation of 553 mm. The urban area of Xi'an is located at 34°16N and 108°56E. The Wei River provides potable water to the city.

70. Climate. The city borders the northern foot of the Qinling Mountain to the south, and the banks of the Wei River to the north. Hua Shan, one of the five sacred Taoist mountains, is located 100 km away to the east of the city. Not far to the north is the Loess Plateau. The subproject is located on the first terrace of the south bank of the Weihe River. The subproject site is located at plain and the terrain is flat and open. The elevation of the subproject site is about 365~367m and there is no surface water body in the subproject area.

71. Xi'an has a temperate climate that is influenced by the East Asian monsoon, and is classified under the Köppen climate classification as situated on the borderline between a semi- arid climate (BSk) and humid subtropical climate (Cwa). The Wei River valley is characterized by hot and humid summers, cold and dry winters, and dry springs and autumns. Most of the annual precipitation is delivered from July to late October. Snow occasionally falls in winter, but rarely settles for long. Dust storms often occur during March and April as the city rapidly warms up. Summer months also experience frequent but short thunderstorms. The monthly 24-hour average temperature ranges from around the freezing mark in January to 27.0°C in July with an annual mean of 14.08°C. With monthly percent possible sunshine ranging from 31 percent in December to 47 percent in August, the city receives 1,536 hours of bright sunshine annually. Extremes since 1951 have ranged from −20.6°C on January 11, 1955 to 41.8 °C on June 21, 1998. A highest record of 42.9°C was registered in another station on June 17, 2006. The annual maximum temperature is around 40°C, while the minimum is around -8°C. The average frost-free phase lasts for 219-233 days. The dominant wind direction is northeast wind. The prevailing wind direction on the ground in Xi'an is northeast or east wind with annual average wind speed at 1.3 - 2.6m / s.

72. Surface water. In ancient times, Chang’an (now knows as Xi’an) was famous for its eight rivers. Bahe River and Chanhe River in the east of Xi’an, Juehe River and Haohe River in the south, Zaohe River and Fenghe River in the west, and Weihe River and Jinghe River in the north. Besides, there are other big rivers such as Heihe River, Laohe River and Linghe River in Xi’an. Most of these rivers belong to the Weihe River system in the Yellow River Basin.

73. The subproject site is located at Chanhe River basin. The nearest river of the subproject is the Dayu River which is 1.5km away from the subproject site in the east. Dayu River is a primary tributary of Kuyu River and the secondary tributary of the Chanhe River. Dayu River is classified as Class III surface water body.

74. Formation lithology. The subproject is located in the alluvial plain of the Chanhe River, which is covered by the quaternary loose accumulation layer. According to the surface survey and drilling, the stratum nearby the subproject area is mainly artificial accumulation and alluvial clay loess, sand soil and clay.

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75. Cultural relics and historic sites. Located in the middle of the Guanzhong Plain, Xi’an is one of the three international metropolises designated by China. In 2017, there were 3,246 immovable cultural relic sites and 392 cultural relic protection sites (including 52 national cultural relics protection sites, 105 provincial cultural relics protection sites, and 235 city and county-level cultural relics protection sites) in Xi’an, including 2 world cultural heritage sites and 4 national archaeological parks. Xi’an has 126 museums, including 34 state-owned museums, 45 industry museums, and 47 non-state-owned museums.

D. Ambient Environment Baseline

76. In order to understand the current environmental quality of the surrounding area, Shaanxi Provincial Standard Research Environmental Energy Testing Consulting Co., Ltd. was engaged to conduct noise and ambient air quality monitoring at site boundaries and sensitive receptors. Meanwhile, ambient air quality data was collected from the Environmental Protection Express (Air quality Status in December 2018 and from January to December 2018 in Shaanxi Province) issued by Department of Ecology and Environment of Shaanxi Province. Groundwater environmental quality status surrounding the subproject site was referred to the Environmental Impact Assessment and Monitoring Report of Yinzhen Methanol Refueling Integrated Station of Xi’an Communication Gas Corporation Ltd.

1. Noise Monitoring

77. Shaanxi Provincial Standard Research Environmental Energy Testing Consulting Co., Ltd. was engaged to carry out the acoustic environment quality monitoring. Eleven monitoring points were selected for noise monitoring, in which eight points were for railway warehouse and logistics area and three were for special railway line area.

78. For the subproject, six noise monitoring points were distributed at the boundaries and two monitoring points were at the two nearby sensitive receptors- Fengqi Mountain Cemetery and Xinzhuang Village. To access the noise impacts from existing Xi-Kang railway, three monitoring points were selected at Gaozhai Village (one point) and Xinzhuang Village (two points). The monitoring points are presented in the Figure IV-2 (red triangles showing the monitoring points).

79. Details information for noise monitoring points is shown in Table IV-1.

Table IV-1: Noise Monitoring Points at the Site Boundaries

S/N Point location 1 No.1 point at east boundary 2 No.2 point at east boundary 3 No.1 point at south boundary 4 No.1 point at west boundary 5 No.2 point at west boundary 6 No.1 point at north boundary 7 Fengqishan Mountain Cemetery 8 Xinzhuang Village

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Figure IV-2: Noise Monitoring Points

80. The monitoring was carried out at over a 48-hour period from November 8, 2019 to November 9, 2019. Weather conditions were sunny and cloudless with wind speed less than 5.0 m/s, which is in compliance with relevant PRC meteorological requirements for noise monitoring.

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81. Monitoring was undertaken with multi-functional ambient noise detectors. Monitoring was undertaken in accordance with the relevant requirements in PRC Environmental Quality Standards for Noise (GB3096-2008). The noise monitoring results are shown in Table IV-2 and Table IV-3.

82. All the noise monitoring results at the sensitive receptors can meet the PRC Class 2 standard. All the noise monitoring results at the site boundaries can meet the PRC Class 4a standard (two points at the east boundary) and Class 2 standard (the left points).

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Table IV-2: Noise Monitoring Results at Sensitive Receptors from Existing Xi’an-Ankang Railway Unit: Leq (dB)

November 8th November 9th Standard value Locati Distan Cumulative Cumulative on ce Background noise with train Background noise with train passing by passing by Daytim Nightti Daytim Nightti Daytim Nightti Daytim Nightti Daytim Nightti e me e me e me e me e me The 35 westernmo st of 45 42 50 48 44 40 51 48 60 50 Xinzhuang Village The 32 eastmost of 47 42 57 52 46 41 57 53 70 60 Xinzhuang Village The 35 westmost 46 41 57 53 47 42 57 52 70 60 of Gaozhai Village Source: Domestic EIA

Table IV-3: Noise Monitoring Results at the site boundaries and sensitive receptors Unit: dB (A) Unit: dB (A) Monitoring time interval No. of Monitoring point Daytime Nighttime November 8th November 9th November 8th November 9th

1 45 46 41 42 2 46 45 40 41 3 47 48 40 42 4 46 46 41 40

5 46 46 41 43

6 45 47 40 42 7 46 44 42 40 8 44 45 41 41 Class 4a: daytime: 70, nighttime: 60 Standards Class 2: daytime: 60, nighttime: 50 Source: Domestic EIA

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2. Environmental Vibration Monitoring

83. Based on Standards of Environmental Vibration of Urban Area (GB10070-88), there is only one sensitive receptor (Xinzhuang Village) involved in the vibration assessment scope (60 m on both sides of the center line of the outer track). Therefore, a vibration monitoring point is set in the Xinzhuang Village. The point is located on the flat and solid ground and is 0.5 m outside the first row of houses closest to the rail track. The monitoring point location and vibration evaluation scope are shown in Figure IV-3.

84. The environmental vibration test was conducted in the representative period from 6:00 to 22:00 in the day and 22:00 to 6:00 in the night. The monitoring was conducted once in the day and once in the night, with each monitoring time not less than 1000s. The results are presented in Table IV-4.

Table IV-4: Environmental Vibration Monitoring Results

Standard of Vibration in Urban Monitoring point Monitoring Period Area Environment (GB10070- Compliance location value (dB) 1988) Mixed Area Meet the Daytime 55 75 standard Xinzhuang Village Meet the Nighttime 52 72 standard Source: Domestic EIA

85. Xinzhuang Village meets the requirements of Standards of Environmental Vibration of Urban Area (GB10070-88).

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Figure IV-3: Environmental Vibration Assessment Scope and Monitoring Point

3. Air quality status assessment

86. During the domestic EIA preparation, ambient air quality monitoring was conducted at nearby receptors-Gaozhai Village and Xibao Village (Figure IV-4). Monitoring was undertaken continuously over a 7-day period from May 22 to 29, 2018 for SO2 and NO2 (1-hour average

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concentrations) and PM10, PM2.5, SO2 and NO2 (24-hour average concentration).The monitoring results are presented in Table VI-4.

87. The data show that all 1-hour average SO2, NO2 concentrations and 24-hour average SO2, NO2, PM10 and PM2.5 concentrations of Gaozhai Village and Xibao Village were in compliance with the Class II Ambient Air Quality Standards (GB3095-2012).The results show that air quality near the subproject area is good.

Figure IV-4: Ground Water Monitoring Points

Table IV-5: Ambient Air Quality Monitoring Results Unit: μg/m3

Exceedance Exceedance 1-h average 24-h average Location Pollutants Limit of Limit of concentration concentration standard, % standard, % SO2 11~20 500 0 14~16 125 0 Gaozhai NO2 33~54 200 0 37~40 80 0 Village PM10 / / / 106~147 150 0 PM2.5 / / / 54~68 75 0 SO2 10~22 500 0 14~17 150 0 NO2 33~52 200 0 37~41 80 0 Xibao Village PM10 / / / 99~141 150 0 PM2.5 / / / 51~65 75 0

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4. Groundwater quality

88. The groundwater monitoring data near the subproject is quoted from the 1# Fengqishan Cemetery of south zone and 2# Gaozhai Village in the Environmental Impact Assessment Monitoring Report of Methanol Refueling Comprehensive Station in Yinzhen Town, Xi’an Transportation Gas Co., Ltd. The monitoring data was from May 24 to 25, 2018. The locations are presented in Figure IV-5 and Table IV-6. The monitoring results are presented in Table IV-7 and Table IV-8.

Table IV-6: Groundwater Monitoring Well Location Well depth Monitoring point location Longitude and latitude Groundwater level (m) (m) 1# Fengqishan Cemetery N34°66.1 E109°515.0 69 50 of south zone 2# Gaozhai Village N34°620.9 E109°542.2 170 130 Source: Domestic EIA

Table IV-7: Groundwater Monitoring Results for 1# Fengqishan Cemetery of South Zone Unit: mg/L, pH dimensionless Monitoring results Exceedance of Item to be analyzed Class III standard standard 2018-05-24 2018-05-25

K+ mg/L 0.81 0.81 / /

Na+ mg/L 26.0 26.0 0 ≤200

Ca2+ mg/L 57.6 57.6 / /

Mg2+ mg/L 17.4 17.8 / /

CO32- mg/L ND 5 ND5 / /

HCO3- mg/L 363 363 / /

pH dimensionless 7.77 7.82 0 6.5-8.5

Ammonia nitrogen mg/L 0.02 0.02 0 ≤0.50

Volatile phenols mg/L ND 0.001 ND 0.001 0 ≤0.002

Nitrate (as N) mg/L 3.88 4.14 0 ≤20.0 Nitrite (counted by N) ND0.001 ND0.001 0 ≤1.00 mg/L Arsenic µg/L 0.0016 0.0016 0 ≤0.01

Mercury µg/L 0.00008 0.00008 0 ≤0.001 Hexavalent chromium 0.021 0.020 0 ≤0.05 mg/L

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Total hardness mg/L 227 223 0 ≤450

Lead µg/L ND 0.0025 ND 0.0025 0 ≤0.01

Fluoride mg/L 0.83 0.85 0 ≤1.0

Cadmium µg/L ND 0.0001 ND 0.0001 0 ≤0.005

Iron mg/L ND 0.030 ND 0.030 0 ≤0.3

Manganese mg/L ND 0.010 ND 0.010 0 ≤0.10 Total dissolved solids 304 344 0 ≤1000 mg/L Oxygen consumption 0.43 0.4 0 ≤3.0 mg/L Petroleum mg/L 0.04 0.04 0 ≤0.05*

Sulfide mg/L ND0.005 ND0.005 0 ≤0.02

Cyanide mg/L ND 0.001 ND 0.001 0 ≤0.05 Source: Domestic EIA

Table IV-8: Groundwater Monitoring Results for 2# Gaozhai Village Unit: mg/L, pH dimensionless

Monitoring results Exceedance of Item to be analyzed Class III standard standard 2018-05-24 2018-05-25

K+ mg/L 1.53 1.51 / /

Na+ mg/L 35.0 34.8 0 ≤200

Ca2+ mg/L 51.6 51.9 / /

Mg2+ mg/L 19.0 19.1 / /

CO32- mg/L ND5 ND5 / /

HCO3-mg/L 347 351 / /

pH dimensionless 7.87 7.85 0 6.5-8.5

Ammonia nitrogen mg/L ND0.02 ND0.02 0 ≤0.50

Volatile phenols mg/L ND 0.001 ND 0.001 0 ≤0.002

Nitrate (as N) mg/L 5.03 5.33 0 ≤20.0

Nitrite (counted by N) mg/L ND0.001 ND0.001 0 ≤1.00

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Arsenic µg/L 0.0013 0.0012 0 ≤0.01

Mercury µg/L 0.00007 0.00007 0 ≤0.001 Hexavalent chromium ND0.004 ND0.004 0 mg/L ≤0.05 Total hardness mg/L 224 226 0 ≤450

Lead µg/L ND 0.0025 ND 0.0025 0 ≤0.01

Fluoride mg/L 0.57 0.68 0 ≤1.0

Cadmium µg/L ND 0.0001 ND 0.0001 0 ≤0.005

Iron mg/L ND 0.030 ND 0.030 0 ≤0.3

Manganese mg/L ND 0.010 ND 0.010 0 ≤0.10 Total dissolved solids 116 106 0 mg/L ≤1000 Oxygen consumption 0.56 0.52 0 mg/L ≤3.0 Petroleum mg/L ND 0.01 ND0.01 0 ≤0.05*

Sulfide mg/L ND0.005 ND0.005 0 ≤0.02

Cyanide mg/L ND 0.001 ND 0.001 0 ≤0.05 Note: ND indicates not detected. For petroleum, please refer to Category III standard given in the Environmental Quality Standards for Surface Water (GB 3838-2002). Source: Domestic EIA

89. From the monitoring results, it can be seen that groundwater quality of 1# Fengqishan Cemetery of south zone and 2# Gaozhai Village all met Category III Standards for Groundwater Quality (GB/T14848-2017).

E. Ecological and Sensitive Resources

90. The geology, geomorphology, climate, hydrology and soil types in Xi'an are diverse. Xi’an has a long history of human activities. Affected by both natural and social environment, Xi’an has a unique vegetation feature.

91. There are 66 families, 92 genera, 252 species and 7 varieties of seed plants in Xi'an city. There are 113 plants, 422 genera, 701 species and 80 varieties of seed plants in the south of Nanwutai Mountain, which is 26 km away from the urban area. There are 121 families, 628 genera and about 1,550 species of seed plants at Taibai Mountain, the main peak of the Qinling Mountain. The seed plant species accounted for 40.20% of the total number of seed plants, 33.2% of the total genera, and 6.3% of the total species in the country. There are 138 families, 681 genera and 2,224 species of plants within the territory of the city. The natural vegetation and cultivated vegetation have clear boundaries. The Qinling Mountain are basically natural vegetation, while the Weihe Plain, the Lidongnan Hill and the Loess Tableland are cultivated vegetation. The distribution of the two vegetation areas is generally consistent with the landform.

92. The subproject site is located in developed area and natural vegetation has been removed

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(Figure IV-6). Therefore, the ecological system at the subproject site is mainly the urban ecosystem.

93. According to the site investigation and information collection, domestic EIA, site surveys and records review, there are no known rare or endangered flora or fauna, species with international, national or provincial protection status, areas of natural or critical habitat,12F parks, nature reserves, or areas with special national, regional or local ecological significance within or adjacent to any of the subproject site. There are also no known drinking water sources, scenic sites, or sites with Physical Cultural Resources (PCRs) based on both sites surveys and literature review.

Gaozhai Village, the east of freight yard Xinzhuang Village, the east of receiving- departure yard

Fengqishan Cemetery, the west of Public beneficial columbaria of freight yard Xinzhuang Village, the west of receiving- departure yard

Figure IV-5: Sensitive receptors

94. Sensitive receptors of the subproject are presented in Table IV-9 to Table IV-11.

Table IV-9: Sensitive Receptors of Ambient Air

Coordinates Object of protection Protection Distance Direction Location (household/ content (m) Longitude Latitude person) Xinzhuang 109°05'31.2" 34°06'50.2" 150/600 N 560 Village Population health Beiliu Village 109°04'48.0" 34°06'19.5" 150/600 NW 830

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Rencun Village 109°06'29.9" 34°06'19.7" 32/120 E 1100

Liming Village 109°07'00.5" 34°06'27.4" 43/160 NE 1900

Zhangzhaigou Village 109°06'25.0" 34°05'24.0" 70/350 SE 1100

Nanliu Village 109°04'35.9" 34°05'32.9" 90/450 SW 1500 Beijie Village 109°06'12.3" 34°04'52.7 360/2300 S 1530 of Yinzhen Gaozhai 109°05'58.7" 34°06'17.7" 140/560 E 125 Village Zhajiapo 109°05'18.9" 34°07'14.5" 72/340 NW 230 Village Guanghui 109°04'36.5" 34°07'04.0" 86/580 NW 1400 Village Hujiazhai 109°04'03.8" 34°05'43.4" 48/320 W 2300 Village Mingdu Town 109°06'31.2" 34°07'26.3" 520/3500 NE 1900

Renyibu 109°06'22.5" 34°05'45.2" 25/110 SE 610 Guangming 109°04'04.1" 34°06'41.2" 150/600 WN 2100 Village Yaojiazhai 109°06'51.6" 34°04'53.0" 145/575 SE 2300 Village Source: Domestic EIA

Table IV-10: Sensitive Receptors of Noise

Sensitive Distance Scale of impact Area Direction Environmental function point (m) (household/person) Xinzhuang East 35 150/600 Class 2 standard. Village Public Railway beneficial columbaria special West 60 / Class 2 standard of line Xinzhuang Village Gaozhai East 100 2/8 Class 4a standard Village Gaozhai East 125 10/40 Freight Village Class 2 standard yard Fengqishan Adjoining West / Cemetery neighbor Note: the distance between sensitive point and railway special line refers to the closest distance between sensitive point and the center line of railway special line Source: Domestic EIA

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Table IV-1: 1Sensitve Receptors of Vibration

Position relationship with center line of outer rail of General situation arrival-departure track Sensitive of sensitive Protection objectives point Altitude points within the Location Line form Distance difference (m) evaluation scope 1~2 floors of brick- Standards of concrete structure, Xinzhuang Environmental Vibration Right Embankments 35 6 self-built by Village of Urban Area residents, about 28 households (GB10070-88) Source: Domestic EIA

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V. ANTICIPATED IMPACTS AND MITIGATION MEASURES

95. Anticipated positive and negative environmental impacts of the subproject were assessed based on the domestic FSR, domestic EIA; public consultations led by PIE and assisted by ADB technical assistance (TA) consultants; and site visits, surveys and consultations undertaken by ADB TA consultants.

96. Pre-construction, construction phase and operation phase of the subproject were assessed respectively. As the assessment results indicate that the environmental impacts are limited in the pre-construction stage and are mostly associated with ensuring appropriate incorporation of mitigation measures into the project design.

97. Potential negative environmental impacts during construction phase are short-term and localized, and are associated with soil erosion, solid waste, wastewater, construction noise, fugitive dust, disruption of traffic and community services, and risks to workers and community health and safety. These can be effectively mitigated through good construction and health and safety practices.

98. Potential negative impacts during operation phase are associated with air pollution from vehicles, solid waste, wastewater, noise, and health and safety risks to workers and community. These can be effectively mitigated through good operation of the subproject and health and safety practices

99. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

A. Pre-construction Measures shall be Implemented During Detailed Design

1. Siting and Land Acquisition

100. The subproject is located in Yinzhen Modern Logistics Park. The subproject site is construction land; therefore, the subproject will not result in any involuntary land acquisition, resettlement or physical displacement. There will be no loss of personal property, structures, crops, trees or other assets. There are also no potential adverse impacts on disadvantaged or vulnerable groups, including the poor, women and children, and Indigenous Peoples.

2. Mitigation Measures and Monitoring during Detailed Design

101. During the detailed design, the mitigation measures taken to minimize the impact are as follows:

(i) Detailed Design. Environmental mitigation and pollution control measures indicated in this IEE, the EMP and the domestic EIA will be incorporated into the detailed design.

(ii) Organization. An external Loan Implementation Environmental Consultant (LIEC) will be hired by the IA. A subproject PMO will be established by PIE with sufficient

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staff responsible for environmental and social issues and an external Loan Implementation Environmental Consultant (LIEC) will be hired by the PMO if needed.

(iii) Training. Before the start of the construction, the LIEC will implement institutional strengthening and training programs. The training focuses on ADB and domestic related environmental, health and safety laws, regulations and policies, environmental management plan, environmental monitoring, and natural cultural resources and the implementation of the Grievance Redress Mechanism. The training targets are PIE, PMO and contractors.

(iv) Bidding documents and contracts. Environmental mitigation measures indicated in this EIA, the EMP and the domestic EIA will be included in contracts for civil works and equipment installations. All contractors will be required to strictly comply with the EMP. The subproject construction bidding documents shall contain the EMP, which the contractor shall all strictly abide by.

(v) Environmental monitoring. According to the relevant requirements of PRC and ADB, the environmental monitoring plan shall be formulated. The main monitoring targets of this subproject are noise and dust during construction phase and noise during operation phase.

3. Grievance Redress Mechanism

102. In accordance with the GRM presented in Chapter VIII of the IEE, a staff member from PIE will be assigned to be overall responsible for the GRM. GRM training will be provided for PMO, IA and PIE, and GRM access points. GRM access point phone numbers, fax numbers, addresses and emails will be disclosed to the public at the construction site.

4. Training and Capacity Building

103. A training plan is developed focusing on the implementation of relevant environmental, health and safety laws, regulations and policies, EMP, environmental monitoring, natural cultural resources and GRM and will be delivered by the LIEC. The training targets are subproject PMO, PIE, and contractors.

5. Permitting

104. All necessary permits have been obtained from the relevant authorities.

B. Anticipated Environmental impact and mitigation measures during the construction phase

105. Potential impacts during the construction phase could include air pollution, noise, water pollution, solid waste, and community and workers health and safety. Potential air quality impacts could occur due to fugitive dust generated at construction sites from stockpiles of uncovered earth materials, and vehicles hauling materials. The use of powered mechanical equipment during construction activities will generate noise. Construction activities will generate wastewater and construction workers will generate domestic wastewater. Stockpiles of construction waste is expected to have impact on the surrounding environment. Construction activities will produce construction waste and domestic waste. Workers will face occupational health and safety issues

54 working on construction sites. Identified impacts can be readily addressed through the application of good construction site practices.

1. Impacts on Flora and Fauna

106. Typical construction impacts on flora and fauna include removal of vegetation and disruption of the ecosystem during construction. If present, rare or endangered flora or fauna may also be impacted. However, the construction sites are located in urban environments with little or no vegetation cover other than recently established grasses and shrubs. It is therefore unlikely that there will be direct impacts on natural lands or ecological values from site developments.

107. Based on site visits, there is no known rare or endangered flora or fauna, parks, nature reserves or areas with special ecological significance which will be impacted by the subproject. Impacts on flora or fauna are thus expected to be minimal and short-term. Nonetheless, to address potential impacts, the following mitigation measures will be implemented.

(i) Site vegetation plan will be developed at subproject sites using appropriate local native species. (ii) Any existing greening areas impacted by the subproject will be restored post- construction using appropriate native species. (iii) During construction, construction working areas will be demarcated to prevent encroachment and damage to adjacent areas.

2. Erosion and Spoil

108. Construction activities such as land leveling, excavation and filling activities may lead to surface erosion. The most vulnerable soil erosion areas in the construction site include excavation sites, leveling sites, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. Soil erosion can also be more serious on slopes or near water bodies. However, based on site visits, all construction sites are generally flat and there are no rivers, streams, ditches or lakes that are likely to be affected. Soil erosion can also occur after the completion of construction if site restoration is inadequate. Finally, construction activities may generate surplus spoil. Details of spoils generated from the subproject are given in Table V-1.

Table V-1: Magnitude of Earthworks for the Subproject Unit: 1,0000 m3

Earth excavation Earth backfill Spoil Spoil Disposal Spoil Spoil Xi’an Chang’an District Spoil 44 36 8 Disposal Site

109. These impacts can be mitigated through typical good construction practice as set out in EHS Guidelines on Construction and Decommissioning (C&D), erosion controls and site maintenance:

(i) At construction site, the potential for storm water runoff will be assessed and appropriate storm water drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention

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and settling ponds to control topsoil runoff. (ii) Land excavation and filling will be balanced so as minimize the requirement for fill material transportation. (iii) During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good construction management practices. (iv) Temporary spoil storage sites will be identified, designed, and operated to minimize impacts. Spoil sites will be restored at the conclusion of storage activities. (v) Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to Xi’an Chang’an District Spoil Disposal Site. (vi) Spoil and aggregate piles will be covered with landscape material and/or regularly watered. (vii) Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal. (viii) Construction and material handling activities will be limited or halted during periods of rains and high winds. (ix) Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. (x) Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass.

3. Wastewater

110. Inappropriate disposal of domestic wastewater (from construction workers) or construction wastewater (from oil-containing wastewater from machinery repairs) may cause soil or groundwater contamination.

111. Construction wastewater will be produced from the maintenance and cleaning of mechanical equipment and vehicles, and lost water and soil which is discharged as pollutants. It is unlikely that runoff from site will reach distant water bodies, however, to prevent runoff and infiltration from impacting the immediately surrounding areas, the contractors shall ensure that runoff from site will not reach distant water bodies.

112. Inappropriate disposal of construction wastewater (from construction site runoff, drainage of drilling, washing construction equipment and vehicles, pouring and curing concrete, and oil- containing wastewater from machinery repairs) could potentially pollute nearby water bodies and clog local drains. Workers will generate but limited amount of domestic wastewater.

113. To prevent pollution of water resources, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D, will be implemented:

(i) Worker camp will be installed with sufficient toilets which will be provided for the workers and domestic wastewater will be treated in septic tank and discharged to the municipal sewerage system on a regular basis. Once the construction starts, if it is found that toilets are not enough or there are female workers, more toilets will be provided.

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(ii) Construction wastewater will be directed to temporary detention and settling ponds, and the treated water will be partly recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer system and the waste residue in the tank is cleaned and transported to designated certificated and engineered landfill by the local sanitation department. If needed, polyacrylamide flocculent will be used to facilitate particle settling. All discharged construction wastewater will to be treated to meet the appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be treated in the municipal WWTP. (iii) All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. (iv) Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. (v) Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. (vi) All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation. (vii) Storage facilities for fuels, oil and other hazardous materials if applicable are within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits. (viii) The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

4. Air Pollution

(i) Analysis of the impact of fugitive dust generated by vehicle transportation

114. The fugitive dust transported by the vehicle accounts for about 30% of the total fugitive dust generated. In the complete dryness condition, fugitive dust quantity is calculated according to the following empirical formula:

Q=0.123ͧV/5ͨ(W/6.8)0.85(P/0.5)0.75

In the formula: Q--the fugitive dust of the car, kg/km·per car; V--car speed, km/h; W--car weight, t; P--the amount of dust on the road surface, kg/m2.

115. Table V-2 shows the amount of fugitive dust generated by a truck with a capacity of 5 tons passing a road of 500m at different road cleaning levels and at different driving speeds.

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Table V-2: Vehicle Fugitive Dust Units at Different Speeds under Road Cleaning Conditions (Unit: kg/car·km) 0.1 0.2 0.3 0.4 0.5 1.0 Speed ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ 5(km/h) 0.0283 0.0476 0.0646 0.0801 0.0947 0.1593

10(km/h) 0.0566 0.0953 0.1291 0.1602 0.1894 0.3186

15(km/h) 0.0850 0.1429 0.1937 0.2403 0.2841 0.4778

20(km/h) 0.1133 0.1905 0.2583 0.3204 0.3788 0.6371 Source: ADB TA consultants

116. The results show that in the same road cleaning levels, the faster the speed is, the more fugitive dust is generated; and at the same speed, the worse the road cleaning level is, the more fugitive dust is generated.

117. If the road is sprayed with water regularly, the dust will be reduced. If the water is sprayed 4~5 times every day, the fugitive dust can be reduced by about 70%. Table V-2 shows the test results of water spraying at the construction site. It presents that 4~5 times of water spray at the construction sites every day can effectively control the construction fugitive dust, and impacts range of the TSP will be less than 50m and the TSP concentration can meet the hourly average concentration limit in Table 1 of the Fugitive Dust Emission Limit of Construction Site (DB61/1078- 2017), no more than 0.7mg/m3. Therefore, limit of vehicle speed, maintenance of road and proper water spray are effective means to reduce vehicle fugitive dust.

Table V-3: Test Results of Watering for Fugitive Dust Suppression at Construction Site Distance (m) 5 20 50 100

TSP hourly averag eNo water spray 10.14 2.89 1.15 0.86 concentration ˄mg/m3˅ Water spray 2.01 1.40 0.67 0.60 Source: ADB TA consultants

(ii) Impact of construction dust from outdoor stockpiles and uncovered construction sites

118. The fugitive dust caused by wind in the outdoor stockpiles and uncovered construction sites accounts for about 70% of the total dust generated. Due to the construction needs, some building materials need to be stacked outdoor. Some construction sites need to be excavated and stacked manually, where dust is generated in the case of dry climate and windy conditions.

119. The spreading and diffusion of dust particles in the air are related to meteorological conditions such as wind speed, and the sedimentation velocity of the dust particles. Taking sand and dust as an example, the sedimentation velocity increases rapidly with the increasement of particle size. When the particle size is 250μm, the sedimentation velocity is 1.005 m/s. Therefore, when the particle size is larger than 250μm, the main impact range of the dust is within the close range of the fugitive dust generation point in downwind direction and the impacts are mainly from the micro and small particles.

120. The construction fugitive dust size varies greatly based on the construction season, the amount of earthwork and the construct particles, and the impact range can reach 150~300m.

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Through the analogy investigation and analysis, under the general meteorological conditions, when the average wind speed is 2.5m/s, the construction fugitive dust can result in:

i. The TSP concentration at the construction site is 1.5~2.3 times of the reference point in the upwind direction; ii. The TSP concentration at the point which is 150m way from the construction site in the downwind direction is 0.49mg/m3 equivalent to 1.6 times of the limit; iii. Fence can reduce construction fugitive dust pollution. When the wind speed is 2.5m/s, the impact range can be reduced by about 40%.

121. The construction work activities may destroy the soil surface, expose the land and loosen the soil and provide good conditions for fugitive dust generation. The subproject area belongs to a temperate continental monsoon climate with less rainfall and more dryness and wind in spring and winter seasons. Some study pointed that fugitive dust caused by windy weather leads to high concentration of TSP in the atmospheric environment, among which construction sites contribute most. Therefore, fugitive dust pollution is one of the main environmental problems during the construction phase.

(iii) Mitigation Measures for Ambient Air Quality Impact

122. The subproject is located in the urban area. In order to reduce the impacts of construction fugitive dust during construction, the contractors should strictly follow the Fugitive Dust Emission Limit of Construction Site Boundary (DB61/1078 -2017), Work Plan for the Blue Sky Defense War of Shaanxi Province in 2019, and other relevant provisions such as the Regulations on the Prevention and Control of Air Pollution in Shaanxi Province. The main prevention measures for construction fugitive dust are as follows:

(i) Water will be sprayed on active construction sites including where fugitive dust is being generated on a daily basis, and more frequently during windy days. (ii) Transport vehicles will be limited to low speeds at the construction sites. (iii) Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. (iv) Construction site roads will be well maintained and watered and swept on an as- needed basis. Construction site road entry points will be equipped with truck drive through wash ponds. (v) Transport routes and delivery schedules will be planned to avoid densely populated and sensitive areas, and high traffic times. (vi) Store petroleum or other harmful materials in appropriate places and cover to minimize fugitive dust and emission. (vii) Provide regular maintenance to vehicles in order to limit gaseous emissions (to be done off-site). (viii) Temporary fencing will be erected around dusty activities. (ix) Construction spoil, aggregate other construction materials will be temporary stored using containers, but they may still have the potential to generate dust. Thus, containers will be covered and/or watered if necessary. Powdered materials such as cement and lime will be stored in sealed bags or containers. (x) Muddy or dusty materials on public roads outside the exits of works areas will be

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cleaned immediately. (xi) On-site asphalting and concrete batching are prohibited. (xii) Fence will be installed at site boundaries and dust monitoring will be implemented at sensitive receptors to ensure compliance.

(xiii) Disturbed site will be revegetated as soon as possible after the completion of works.

5. Noise

123. According to the nature of the subproject, the noise sources of the construction activities at the construction sites are shown in Table V-4.

Table V-4: Noise Sources of the Construction Machinery Measuring point No. Name of Device A sound level (dB(A)) distance (m) 1 Drill pile machine 109 2 Concrete pump 85 3 Concrete vibrating machine 84 4 Tire hydraulic excavator 84 5 Grader 90 D=5 6 bulldozer 86 7 Vibratory roller 86 8 Double wheel double vibrating roller 87 9 Three-wheel roller 81 10 Tire roller 76 Source: ADB TA consultants

124. According to the data in Table V-3, the noise from the drilling machine is the highest among the construction machinery, up to 109dB(A) at 5m from the sound source, and the remaining sound level of most construction machinery is between 76~90dB(A). .

125. According to the noise attenuation formula of point source, the noise level at the different distances from the point noise source r is:

r Lp r =Lp r0 -20lg r0 In the formula: Lp r -- the sound pressure level of the noise source at the predicted point, dB(A);

Lp r0 -- Sound pressure level at the point of reference location , dB(A);

-- the distance from the reference position to the center ofr0 the sound source, m; r0 r-- the distance from the center of the sound source to the predicted point, m. 126. According to the formula, the impact ranges of the equivalent sound levels of the construction machinery is shown in Table V -5.

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Table V -5：Equivalent Sound Level of Construction Machinery’s Noise Impact Range LAeq: dB(A) Standard distance Standard distance Name of Predicted point distance (plant boundary) (sensitive point) No. equipmen Daytime Nighttime Daytime Nighttime t 5 10 20 40 80 160 320 640 2506 (70) (55) (60) (50) Drill pile 1 109 103 97 91 85 79 73 67 55 446 2506 1409 4456 machine Concrete 2 85 79 73 67 61 55 / / / 28 158 89 281 pump Concrete 3 Vibrating 84 78 72 66 60 54 / / / 25 142 79 251 machine Tire type 4 hydraulic 84 78 72 66 50 54 / / / 25 142 79 251 excavator 5 Grader 90 84 78 72 66 60 54 / / 50 283 158 500 6 bulldozer 86 80 74 68 62 56 50 / / 32 177 100 315 Vibratory 7 86 80 74 68 62 56 50 / / 32 177 100 315 roller Double wheel 8 double 87 81 75 69 63 57 51 / / 35 199 112 354 vibration roller Three- 9 wheel 81 75 69 63 57 51 / / / 18 100 56 177 roller 10 Tire roller 76 70 64 58 52 / / / / 10 56 32 100 Source: ADB TA consultants

127. According to the predicted results in Table V-4, the noise at the point 446m away from the drill pile machine can meet the daytime limit in Environmental Noise Emission Standard at Construction Site Boundary (GB12523-2011) and noise at the point 2,506m away can meet the nighttime noise limit. The noise at the point 56m away from vibrator in the daytime can meet the daytime limit and noise at the point 317m away can meet the nighttime noise limit. During earthwork construction phase, the noise at the point 50m away can meet the daytime limit and the noise at the point 283m away can meet the nighttime limit.

128. To ensure construction activities meet PRC noise standards and to protect workers and adjacent residents, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) Construction activities will be planned in consultation with local authorities and communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in the least disturbance. (ii) Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of

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such night time activities in advance. (iii) When undertaking construction planning, simultaneous high-noise activities will be avoided, and high noise activities will be scheduled during the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from operating at the same location. (iv) Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise. (v) Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines. (vi) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (vii) Vehicles transporting construction materials or waste will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (viii) Special attention will be paid to protect sensitive sites near the subproject site. High noise construction activities will be positioned as far away from sensitive sites as possible. (ix) Drilling site will be enclosed by fence to reduce noise, if necessary.

6. Solid Waste

129. Solid waste generated in the construction phase will include construction and domestic waste. Construction wastes include various waste packing materials and waste generated during equipment installation and cleaning. An estimated of 0.5 kg/day per worker of domestic waste will be generated from construction workers. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

130. The following solid waste management measure and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) Wastes will be reused or recycled to the extent possible. (ii) Littering by workers will be prohibited. (iii) Excavated soil will be backfilled onsite to the extent possible. Excess spoil that cannot be used on-site will be transported to Xi’an Chang’an District Spoil Disposal Site. (iv) Domestic waste containers will be used for domestic waste collection at work sites. Domestic waste will be collected on a regular basis by the local sanitation department and transported for recycling, reuse, or disposal at a licensed landfill in accordance with relevant PRC regulations and requirements. (v) Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill in accordance with relevant PRC regulations.

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(vi) There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. (vii) Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil, waste from drilling and contaminated soils that remain on the site after construction.

6. Hazardous and Polluting Materials

131. Inappropriate transportation, storage, use and spills of petroleum products and hazardous materials such as oily waste can cause soil, surface and groundwater contamination. To prevent this, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) A hazardous material handling and disposal protocol that includes spill emergency response will be prepared and implemented by contractors. (ii) Storage facilities for fuels, if applicable will be within secured areas on impermeable surfaces provided with dikes with a 110% volume, and at least 300 m from drainage structures and important water bodies. A standalone site within the storage facility will be designated for hazardous wastes. (iii) Signs will be placed at hazardous materials storage sites to provide information on type and name of chemicals and hazardous materials. (iv) Suppliers of hazardous materials must hold proper licenses and follow all relevant protocols and PRC regulations and requirements. (v) A licensed company will be hired to collect, transport, and dispose of hazardous materials in accordance with relevant PRC regulations and requirements.

7. Impacts on Community Health and Safety

132. Construction activities have the potential to cause community disturbance such as traffic congestion or delays, and public safety risks from heavy vehicles and machinery traffic and risk to kids trying to get onto construction site. Mitigations and construction good practice as set out in EHS Guidelines on C&D and EHS general guidelines will be implemented to address traffic and other community disturbance issues.

(i) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (ii) Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (iii) Signs will be placed at construction sites in clear view of the public, warning people of potential dangers. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate.

8. Workers Occupational Health and Safety

133. Construction may cause physical hazards to workers from noise and vibration, dust,

63 handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, such as toxic fumes and vapors, and others.

134. Contractors will implement adequate precautions to protect the health and safety of their workers:

(i) Each contractor will undertake H&S risk assessment of construction works and implement relevant construction phase EHS plan in line with construction good practice as set out in EHS Guidelines on C&D and Occupational H&S guidelines. (ii) Identify and minimize the causes of potential hazards to workers. Implement appropriate safety measures. (iii) Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and storage, handling and disposal of hazardous waste. Induction will be conducted before construction and no worker is allowed on site without induction. (iv) Ensure that all equipment is maintained in a safe operating condition. (v) Provide appropriate PPE to workers. (vi) Implement COVID-19 prevention measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID-19. (vii) Provide procedures for limiting exposure to high noise or heat working environments in compliance with PRC occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and World Bank EHS Guidelines. (viii) Ensure regular safety meetings with staff.

9. Physical Culture Resources

135. Based on site visits, there are no known cultural heritage or archaeological sites at or near the component sites. However, construction activities have the potential to disturb as yet unknown underground cultural relics. To address this issue, a construction phase chance find procedure will be established and activated if any chance finds of PCRs are encountered:

(i) construction activities will be immediately suspended if any PCRs are encountered; (ii) destroying, damaging, defacing, or concealing PCRs will be strictly prohibited in accordance with PRC regulations; (iii) local Cultural Heritage Bureau will be promptly informed and consulted; and (iv) construction activities will resume only after thorough investigation and with the permission of the local Cultural Heritage Bureau.

136. In case of any PCR is found, ADB SPS 2009 requirements as well as PRC laws and

64 regulations will be followed.

C. Anticipated Environmental Impacts and Mitigation Measures during Operation Phase

1. Air pollution

110. During the operation phase, the exhaust gas mainly consists of fuel gas of the internal combustion locomotive, vehicle exhaust gas and cooking fume.

a. Exhaust gas of the internal combustion locomotive

111. The subproject is equipped with a Dongfeng 4DD diesel internal combustion shunting locomotive, with the loading power of 2940KW. As the arrival-departure volume in 2025 is 4.0 pairs per day; the maximum length of arrival-departure line and cargo loading line is 1,590m, and the running speed is 30km/h, and the long-term running time in 2025 is 0.42h/d and 120h/a.

112. During the transportation operation, the internal combustion shunting locomotive will generate fuel gas, and the main pollutants are SO2, NOx and CO.

113. In accordance with Exhaust Emission Tests for Diesel Engines of Motive Power Units (TB/T2783-2017), emission coefficient of air pollutants from the shunting locomotive are presented in Table V-6 and the annual discharged pollutants are presented in Table V-7.

Table V-6: Emission Coefficient of Air Pollutants from the Internal Combustion Shunting Locomotive

Name of pollutants Smoke SO2 NOx CO Emission coefficient 0.2 0.5 6.0 3.5 (kg/t) Source: Domestic EIA Table V-7: Annual Emissions from the Internal Combustion Shunting Locomotive

Pollutant discharge amount (t/a) Fuel consumption (t) Smoke SO2 NOx CO

240.9 0.07 0.18 2.12 1.23 Source: Domestic EIA

b. Automobile exhaust

137. Traffic flow during the short- and long-term peak hours in the operation period (Year 2023 and 2025) of the subproject is determined according to Traffic Impact Report and in combination with the subproject characteristic, which is shown in Table V-8. Pollution emission factors for various vehicles are indicated in Table V-9.

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Table V-8: Car Trips during Peak Hours in Various Trip Modes in Proposed Subproject Area in 2025 (car/h)

Project Year Cars Trucks

Proposed subproject 2025 50 10

Source: Domestic EIA Table 0-9: Pollution Emission Factors of Various Cars

Pollutant emission (g/km) Motor vehicle types NOx PM2.5 The Fourth Stage Minicar, light gasoline National Vehicle 0.032 0.003 car Emission Standard The Fourth Stage Heavy diesel truck National Vehicle 5.554 0.138 Emission Standard Source: Domestic EIA

138. Average driving distances for trucks around the park are 5km, and trucks are considered as heavy-duty diesel vehicles, and 8 peak hours per day are estimated for traffic flow. Average miles for cars are about 10km, and 4 peak hours are estimated for cars. NOx and PM 2.5 emission amount in the park is calculated in Table V-10.

Table 0-10: Automobile Exhaust Emission Amount (t/a) Motor vehicle Year NO PM type x 2.5 Car 0.019 0.002 2025 Truck 0.666 0.017

Total 0.686 0.018 Source: Domestic EIA

139. According to the calculation results, NOx and PM2.5 emission amount for the subproject in 2025 will be 0.686 ton and 0.018 ton per year.

c. Cooking fumes

140. The number of stoves in the canteen is 4, serving 60 people in 2023 and 120 people in 2025. The cooking oil consumption is calculated at 20g/(person ·d) and 300 days for one year. The cooking oil consumption in 2025 is 0.72 t/a. According to the analogy project survey, the average volatile oil content is 2% of the total oil consumption. The subproject uses a purifier for airborne grease and fume with an exhaust air volume of 2000 m3/h, which reaches the removal efficiency at 75% if it works at full capacity for 3 hours every day.

141. The mitigation measures for air pollution are presented below.

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(i) Diesel for shunting locomotive must meet the PRC Class VI standard. (ii) Good maintenance and regular inspection of shunting locomotive. (i) Keep good maintenance of vehicles and road. (ii) Landscape plants will be planted at the subproject site to improve the ambient air quality. (iii) Cooking fume will be treated by oil fume purifier with an exhaust air volume of 2,000 m3/h and a removal efficiency at 75%, then discharged by flue pipe.

2. Waste water

142. Only loading and unloading of goods is involved in the subproject and vehicle and carriage washing will not be allowed. Therefore, the subproject will not generate production wastewater. The wastewater generated from the subproject is domestic wastewater.

143. According to Shaanxi Province Industrial Water Consumption Quota (GB61/T 943-2014), the water consumption of the staff is 100 L/person•d, and the water consumption of mobile staff is 10 L/person•d. The total water consumption in 2025 will be 16.8 m3/d, , and the total water consumption of 250 mobile personnel in 2025 is 2.5 m3/d. Therefore, the total water consumption in 2025 is 19.3 m3/d and 5790 t/a, while the wastewater generation is 15.44 m3/d and 4632.0 t/a in 2025. The water consumption and wastewater generation are presented in Table V-11.

Table V-11: Water Balance of the subproject in 2025

Maximum Water Wastewater Water loss (m 3 Water consumption items Water Indicators design consumption generation /d) amount (m3 /d) (m 3/d)

Staff 140 L/person•d 120 persons 16.80 3.36 13.44 Domestic water Mobile 10 250 persons 2.50 0.50 2.00 personnel L/person•time Total 19.30 3.86 15.44 Source: Domestic EIA

144. Water balance of the subproject during operation are shown in Figure V-1.

Restaurant waste Oil-separating tank water 3.86

Fresh 19.3 15.44 15.44 Discharged into Yinzhen Sewage Domestic water Septic tank Treatment Plant through the municipal water sewage pipe network to be disposed of

Figure V-1: Water Balance Diagram Unit: m3/d

145. The wastewater generated by this subproject will be finally discharged into the wastewater treatment plant (WWTP) through the municipal sewer system. The wastewater discharges by the subproject will be required to meet Class III maximum acceptable concentrations (MACs) in Integrated Standards for Wastewater Discharge (GB8987-1996), and the WWTP discharges are required to meet Class 1A of Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants (GB 18918-2002).

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3. Environmental impacts of solid waste and mitigation measures

146. The solid waste generated during the operation stage mainly consists of domestic waste from staff, packaging waste, kitchen garbage, waste oil, waste engine oil, oil-containing waste gloves and rags.

147. Compared with similar domestic freight stations, the waste generated during subproject operation is 293.8t/a. These wastes are mainly waste packaging materials which do not involve toxic and harmful waste and will be recycled as much as possible.

148. Domestic waste of the employee is calculated at 1.0kg/person·d, the domestic waste generated in 2025 is 36.0t/a.

149. The kitchen waste mainly consists of leftovers and vegetable. Kitchen garbage generated is 3.6 t/a. Kitchen waste will be collected, transferred and disposed by third party certificated company.

150. Oily waste is classified as hazardous waste and will be collected, transported and treated by a certified 3rd party hazardous waste treatment company. Besides, a temporary hazardous waste storage will be built.

151. The mitigation measures for solid waste are presented below.

(i) Waste generated during operation will be recycled as much as possible. (ii) Domestic waste bins will be provided and domestic waste will be routinely collected by the local sanitation department for recycling, if possible, or final disposal at Xi’an Lantian waste incineration plant. (iii) Kitchen waste will be collected, transferred and disposed by third party certificated company. (iv) Oily waste is classified as hazardous waste and will be collected, transported and treated by a certified 3rd party hazardous waste treatment company.

4. Noise

152. After the subproject is put into operation, the noise pollution sources are mainly from equipment of warehouse and logistics area, locomotives and transportation vehicles. The information is presented in Table V-11.

153. Following measures will be taken to mitigate noise impacts.

(i) Low-noise equipment will be used as far as possible, and noise reduction measures such as noise elimination, shock absorption, insulated enclosures and sound dampening materials on exterior walls will be implemented. (ii) All equipment will be properly maintained in order to minimize noise. (iii) Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S.

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(iv) Layout of subproject sites will be reasonable planned to reduce noise. (v) Noise monitoring will be conducted at the site boundaries and sensitive receptors for compliance. 5. Community and Occupational Health and Safety

154. The subproject operation poses potential risks to workers and community. To mitigate potential health and safety risks to workers, the following measures and good practice measures per the EHS Guidelines on occupational H&S will be taken.

(i) Operation phase EHS plan and traffic management plan will be developed and implemented and workers will be trained regularly on their implementation. (ii) The nearby communities will be informed of the potential risks and the emergency response plan. (iii) PPE including goggles, gloves, safety shoes will be provided to workers. Noise protection equipment will be provided to workers in high-noise area. (iv) Implement COVID-19 prevention measures, including disinfection/cleaning of offices, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff is infected with COVID-19 (v) Provide training to workers on occupational health and safety, and emergency response such as fire. (vi) Transporting vehicles will slow down to 30 km/h and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (vii) Regular maintenance of vehicles to minimize potential accidents caused by equipment malfunction. (viii) Subproject sites will be fence with restricted public access.

6. Emergency Response Plan

155. An emergency risk and response plan will be established in accordance with the “National Environmental Emergency Plan” (24 January 2006) and other relevant PRC laws, regulations and standards and will include measures in the World Bank EHS guidelines with respect to occupational and community health and safety. The nearby communities will be informed of the potential risks and the emergency response plan. Major elements of the emergency response plan are presented in Table 2 of Appendix I.

D. Positive impact during the operation stage 156. According to the survey, if the subproject is not implemented, average driving distance for the transportation vehicles to transport goods to various scattered points in Xi’an is 30 km and the average driving distance of employees' cars is about 5 km. The detailed calculation of pollutants emission reduction is presented in Table V-12.

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157. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption by 143.2 tons and emissions of NOx, PM and CO2 by 1.9905 tons, 0.0426 tons and 454.0 tons, respectively per year and improve local air quality.

Table V-12: Pollutant Emissions Reduction (t/a) Emissions from this Emissions without this Emissions reduction Type of subproject subproject Motor vehicle NOx PM2.5 CO2 NOx PM2.5 CO2 NOx PM2.5 CO2

Vehicle 0.0210 0.0018 138.3 0.0105 0.0009 69.1 -0.0105 -0.0009 -69.1

Truck 0.4002 0.0087 104.6 2.4012 0.0522 627.7 2.0010 0.0435 523.1

Total 0.4212 0.0105 242.9 2.4117 0.0531 696.9 1.9905 0.0426 454.0

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VI. ANALYSIS OF ALTERNATIVES

158. An analysis of alternatives was undertaken during the feasibility stage to determine the most financially and technically feasible way of achieving the project objectives while minimizing environmental and social impacts.

A. Subproject Rational

159. With the promotion of national and regional strategies such as Guanzhong Plain Urban Agglomeration Development Plan and China (Shaanxi) Pilot Free Trade Zone, Xi'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region.

160. Xi’an has a well-developed railway, highway and aviation transportation network, and has become an important hub in northwest China. At present, Xi’an has air routes to all provincial cities in China There are direct flights from Xi'an to many major cities in Asia, including Bangkok, Busan, Fukuoka, Hong Kong, Kuala Lumpur, Manila, Osaka, Sapporo, Singapore Seoul, and Taipei. As a tourist city, Xi'an has built expressways to Lintong, Tongchuan and Baoji, with well- maintained roads to famous scenic spots in suburban counties and to the north slope of the Qin Mountains. The National Expressway G108, 210, 211 and 312 passes through Xi’an City and of Xi’an City has a good highway transportation condition. Xi’an is classified as International comprehensive transport hub by National Development and Reform Commission in 2018.

161. Although the Xi’an is an important hub in northwest China, there are still some bottlenecks and deficiencies in the development of the Xi'an warehousing and logistics industry. For example, the scale is small and the layout is scattered, especially the traditional manual operations are widely used in existing small and medium-sized logistics parks of Xi'an. There is a shortcoming of insufficient supply in the logistics park, lack of market visibility and competitiveness.

162. As a developing logistics park, Xi’an South Railway Station Logistics Park will provide more transportation service in the future with the development of Xi’an. The subproject will build a rail-road multimodal bulk commodity logistics park to provide railway transportation service to Xi’an.

163. Implementation of the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption by 143.2 tons and emissions of NOx, PM and CO2 by 1.9905 tons, 0.0426 tons and 454.0 tons, respectively per year and improve local air quality.

B. Site location

164. For subproject site selection, the site selection meets the Xi’an Municipal Master Plan and Land Use Plan. There are no environmental sensitive areas near the subproject site. There is no other environmental constraints that might restrict the development of the subproject such as wetlands, historic sites, and access to sewers, critical habits or potential mineral developments.

165. Selecting a site for the subproject is a complicated comprehensive process, which involves national economic policies, local urban master plan, development planning, land use nature, communication and transportation, meteorological conditions, water source, water source protection, geologic conditions, telecommunication, electricity, water supply and drainage, project

71 waste discharge natures, environmental impacts and other economic and technical aspects.

166. According to the urban master plan, regional topographic and geological data, several candidate sites were selected for this subproject. After field reconnaissance, comparative analysis was conducted regarding topographic, terrain, water source, electricity, public utilities, meteorological, communication and transportation, land use conditions, plans for neighboring areas, estimated investments for resettlement and population distribution, etc., the current site was selected for the proposed subproject.

C. Overall Alternative Analysis

167. Based on the analysis of alternatives, the subproject has selected the most appropriate location.

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VII. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION

A. PRC and ADB requirements for disclosure and public consultation 1. PRC requirements

168. Relevant provisions in the PRC Environmental Impact Assessment Law and the Regulations on the Administration of Construction Project Environmental Protection require that an EIA study for a construction project shall solicit opinions from affected residents, as well as other organizations and concerned stakeholders. For a project that prepares a full EIA report is required to submit a public participation statement and make it open to the public, and for a project that prepares only a simplified tabular EIA has no need for public consultation.

169. As this subproject is required to prepare an EIA report, public consultation is required and implemented during domestic EIA preparation.

2. ADB requirements

170. The SPS 2009 has specific requirements for information disclosure and public participation. In line with the ADB's public communication policy, information (positive and negative) on social and environmental safeguard should be disclosed to affected persons and other stakeholders in appropriate locations, in appropriate ways and in a language understood by affected populations, to enable them to provide valuable advice for subproject design and implementation. ADB discloses the following safeguard documents on its official website:

(i) A draft EIA for category A project at least 120 days prior to ADB Board consideration.

(ii) Draft IEE for category B project.

(iii) Final or revised version of EIA/IEE.

(iv) Environmental monitoring reports submitted by the borrower during the project implementation.

171. The SPS 2009 also requires borrowers to conduct meaningful consultations with affected people and other relevant stakeholders, including civil society, and to promote their informed participation. Consultations shall include presentations on environmental impacts, benefits and mitigation measures, GRM and ADB accountability mechanisms.

172. The project is classified as environment Category B, thus, at least one round of consultation is required.

B. Public consultation 173. EIA Institute has undertaken public consultation and information disclosure in accordance with the Interim Guidelines on Public Consultation for EIA (2006) during EIA process. Two rounds of public information disclosure were implemented.

174. PIE disclosed the information of the subproject in two steps:

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175. The first public information notice was posted on Xi’an EEB’s website on October 28, 2013, early in the EIA preparation process. The information in the first public notification (The link is http://www.xaepb.gov.cn/ptl/def/def/index_982_4434_ci_trid_819901.html) is listed below:

(i) Name and summary of the subproject

(ii) Name and contact information of the PIE

(iii) Name and contact information of the institute responsible for preparing the EIA

(iv) EIA procedures and content

(v) Type of EIA notice

(vi) Request for questions, suggestions and feedback from the public

176. A second public information notice was also posted on the Xi’an EEB’s website from November 12, 2013, prior to the submission of the draft EIA report to the Xi’an EEB (the link is http://www.xaepb.gov.cn/ptl/def/def/index_982_4434_ci_trid_839511.html). The information for the second information notice include:

(i) Name and summary of the subproject.

(ii) Name and contact information of the institute responsible for preparing the EIA report

(iii) Name and contact information of the institute responsible for approval of the EIA report

(iv) Name and contact information of the PIE

(v) Potential environmental impacts and mitigation measures during construction phase and operation phase

(vi) Key conclusions of the EIA report

(vii) Contact information to get abridged versions of the EIA report

177. No public feedback was received during two rounds of public information disclosure.

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Figure VII-1: First Public Information Disclosure

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Figure VII-2: Second Public Information Disclosure

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178. Besides, subproject information disclosure was implemented near the subproject site during the domestic EIA preparation.

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Figure VII-3: Public Information Disclosure near the Subproject Site

179. Two public consultation meetings were held in Yinzhen Town, Chang’an District, Xi’an City. The first meeting took place on October 31, 2019. 20 local public representatives (1 woman and 19 men) from Gaozhai Village participated in the meeting.

180. During the meeting, the PIE introduced the project construction place, construction contents and other relevant information, and EIA Company introduced potential environmental impacts and mitigation measures taken during the project construction and operation stages. During the public consultation meeting, 20 copies of "Public Opinion Form for Construction Project EIA" (Figure VII-5) were distributed, with 20 completed forms received.

181. 17 persons had no comments or suggestions on the environmental impacts and mitigation measures and the rest 3 persons provided comments on the environmental protection focus on dust control during the construction stage (construction isolation, effective covering and regular watering are required), noise control and wastewater discharge during the construction and operation stages. The PIE promised to take active consideration of the comments and suggestions.

182. Among 20 respondents, only 6 respondents agreed to make their personal information to public, while 14 disagreed.

183. The second meeting was held on December 25, 2019. 12 female residents of Xinzhuang Village were interviewed for their opinions on the environmental impact assessment of the subproject and introduced with the potential environmental impacts and mitigation measures during the construction and operation phase.

184. Among 12 respondents, 9 had no comment and suggestions on environmental impacts

78 and mitigation measures and the rest residents proposed comments on the environmental protection, focus on air pollution reduction and noise control.

185. The PIE promised to take active consideration. Among 12 respondents, 10 respondents agreed to make personal information public.

186. The overall support for the subproject is very strong, 100% of the respondents support construction of the subproject. 81.3% of the respondents indicated that they accepted the anticipated environmental impacts and mitigation measures. 18.7% of respondents indicated that the top three environmental issues during the construction and operation phase they identified were dust during construction, noise during construction and operation and wastewater during construction.

Figure VII-4: Photos of Public Participation

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Figure VII-5: Completed Public Opinion Form

C. Future Consultation Activities 187. This IEE will be disclosed on the ADB website. Any update in the IEE resulting from a change in subproject scope will be disclosed too. During the construction and operation phases, the GRM will be implemented (see Chapter 8), and public participation activities will be carried out on a regular basis if needed to ensure timely understanding and handling of public concerns.

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VIII. GRIEVANCE REDRESS MECHANISM

A. Introduction 188. A project grievance can be defined as an actual or perceived project related problem that gives ground for complaint by an affected person (AP). As a general policy, a GRM will be established by the PIE, and it will work proactively toward preventing grievances through the implementation of mitigation measures and community liaison activities that anticipate and address potential issues before they become grievances. In addition, as the project has strong public support and will not involve any involuntary land or property acquisition or resettlement, significant grievances are unlikely to happen. Nonetheless, during construction and operation, it is possible that unanticipated impacts may occur if the mitigation measures are not properly implemented, or unforeseen issues arise. In order to address complaints if or when they arise, a subproject-level GRM has been developed in accordance with ADB requirements. A GRM is a systematic process for receiving, recording, evaluating and addressing AP’s project-related grievances transparently and in a reasonable timeframe.

B. ADB’s GRM requirements

189. ADB’s SPS 2009 requires a project to establish a GRM to receive and facilitate resolution of AP’s concerns and complaints about the project’s environmental performance during construction as well as operation stages of the project. The GRM should be scaled to the risks and adverse impacts of the project; should address AP’s concerns and complaints promptly, using an understandable and transparent process, with no gender discrimination, adaptable to the cultural traditions of affected populations and communities; should be readily accessible to the community at no cost and without retribution; and, should not impede access to the PRC’s judicial or administrative remedies.

C. Current GRM practices in the PRC 190. At the national level, a framework to address grievance has been established. State Council Decree No. 431 Regulations on Letters and Visits (January 2005) establishes a complaint mechanism at all levels of government, and safeguards the complainants from any retaliation. The former MEP Decree No. 34 Environmental Letters and Visits System provides specific guidelines to establish a system and address environmental complaints. When APs are affected by project activities, they may complain to the contractors and the project company by themselves or through their community organizations, or complain directly to local EEB. If the issue is not resolved they may take legal action, though that is typically considered as a last option.

D. Project level GRM

191. In order to effectively solve the problem and ensure that the environmental impacts caused by the subproject during the construction phase and operation phase are resolved, the subproject has established a transparent and effective GRM. The GRM will run through the entire construction phase and operation phase until the project is closed, ensuring the affected persons can handle related issues through the procedure. The affected persons will not be charged for the compliant and any cost from the compliant will be paid by PIE.

192. The PIE is a key point in the operation of the subproject GRM, which can ensure the effective operation of the subproject’s GRM. If surrounding residents, government departments

81 and other stakeholders need to know the relevant information of the subproject, the PMO could also be contacted.

193. The GRM will be implemented through 4 escalating steps:

(i) Stage 1: If a concern arises, the AP can try to resolve the issue of concern either directly with the contractor, PIE or via GRM access points (community leaders, neighborhood organizations, PMO, local EEB) during the construction phase, and the PIE directly or via GRM access points during the operation phase. If the concern is resolved successfully, no further follow-up action is required. Nonetheless, the contractor (during construction) and/or the operator (during operation) shall record any complaint and actions taken to resolve the issues and report the results to the PMO and the AP. If no solution is found within 10 working days, or if the AP is not satisfied with the suggested solution under Step 1, proceed to Step 2. The AP may also skip Step 1 and directly file the complaint with the PMO.

(ii) Stage 2: The AP will submit the grievance to the PMO. PMO will propose solutions by investigating the complaint, informing the PIE, and consulting the local EEB and other relevant stakeholders. The solution must be reported to the affected people within 10 working days, after that, PIE must implement the solution within 10 working days. If no solution is formed or the AP is not satisfied with the solution, proceed to Stage 3.

(iii) Stage 3: PMO will organize a multi-stakeholder meeting. PIE and the local EEB will be engaged as stakeholders. The multi-stakeholder meeting will aim to find a solution acceptable to all and identify responsibilities and an action plan. The PIE will ensure that the implementation of agreed-upon redress solution begins within 10 working days of the completion of the multi-stakeholder meeting. If no solution acceptable to all is found, proceed to Step 4

(iv) Stage 4: If the complainant is still dissatisfied with the solution from Stage 3, PMO will organize a hearing process and shall determine a solution acceptable to all. Based on the hearing results, an action plan shall be developed and the PIE will ensure that the implementation of the agreed-upon redress solution begins within 10 working days of the completion of the hearing.

194. If the complainants are not satisfied with the suggested solution under Step 4, the APs can access ADB’s Office of the Special Project Facilitator (OSPF) (https://www.adb.org/site/accountability-mechanism/contacts)or Compliance Review Panel (CRP) (http://compliance.adb.org/dir0035p.nsf/alldocs/BDAO-7XG526?OpenDocument), or seek local legal address.

195. PMO shall inform ADB on the complaints that have been received and the solutions, which shall be included in the environmental monitoring reports.

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Step 1：Resolution at local level Compliant redressed AP tries to resolve issue directly with the contractor or PIE within 10 working days.

Complaint Not Redressed or AP wishes to submit directly to PMO

Step 2: PMO Complaint Resolution

PMO has 10 working days to investigate Compliant and develop a solution and PIE will initiate redressed implementation in 10 working days.

Complaint Not Redressed

Step 3: Multi-Stakeholder Meeting PMO organizes stakeholder meeting within 10 days and solution will be developed in the meeting. Compliant redressed PMO/PIE will initiate solution implementation in 10 working days.

Complaint Not Redressed

Step 4: Grievance Hearing PMO will organize a grievance hearing and determine a solution and an action plan. PMO/PIE will initiate solution implementation in Compliant redressed 10 working days.

If Complaint Is Still Not Addressed, AP May Seek Legal Redress Through ADB’s Office of Special Facilitator, Compliance Review Panel, Local Legal System

Figure VIII-1: Complaint flow chart

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IX. CONCLUSION

196. This IEE report has been prepared for the proposed Rail-road Multimodal Bulk Commodity Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

197. The subproject will be located at located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City. The subproject will build a rail-road multimodal bulk commodity logistics park and have two components include a railway warehouse and logistics area and a special railway line area (including a departure and arrival yard and a loading and unloading yard) as well as supporting public utilities. The subproject will improve the capacity of freight transport organizations in the south of Xi’an and reduce the environmental impacts from road transportation replaced by railway transportation.

198. The subproject will bring significant positive environmental benefits. Once operational, the subproject will: (i) improve the transportation model and efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption by 143.2 tons and emissions of NOx, PM and CO2 by 1.9905 tons, 0.0426 tons and 454.0 tons, respectively per year and improve local air quality.

199. The subproject has: (i) selected appropriate sites for the subproject; (ii) identified potential negative environment impacts and appropriately established mitigation measures; (iii) received public support from the project beneficiaries and affected people; (iv) established effective project GRM procedures; and (v) prepared a comprehensive EMP including environmental management and supervision structure, environmental mitigation and monitoring plan, and capacity building and training.

200. It is concluded that the subproject will not result in adverse environmental impacts that are irreversible, diverse, or unprecedented. Any minimal adverse environmental impacts associated with the subproject will be prevented, reduced, or minimized through the implementation of the EMP.

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APPENDIX I: ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

1. This EMP is prepared for the proposed Rail-road Multimodal Bulk Commodity Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

2. The subproject will be located at located in Xi’an South Railway Station Logistics Park, Yinzhen Town, Chang'an District, Xi’an City. The subproject will build a rail-road multimodal bulk commodity logistics park and have two components include the railway warehouse and logistics area and one special railway line area (including a departure and arrival yard and a loading and unloading yard) as well as supporting public utilities. The subproject will improve the capacity of freight transport organizations in the south of Xi’an and reduce the environmental impacts from road transportation replaced by railway transportation.

3. The objectives of the EMP are to ensure (i) implementation of the identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; (ii) implementation of monitoring and reporting; and (iii) the subproject compliance with the PRC’s relevant environmental laws, standards and regulations and ADB’s SPS 2009. Organizational responsibilities and budgets are clearly identified for implementation, monitoring and reporting.

4. The EMP is to be implemented in all phases of the project cycle, including design, pre- construction, construction, and operation. In the detailed design stage, the EMP will be used by the design institute for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, as needed. The EMP will be disclosed on the ADB website (www.adb.org).

5. The EMP will be included as a separate annex in all bidding and contract documents. The contractors will be informed of their obligations to implement the EMP, and to provide for EMP implementation costs in their bids for project works.

B. Organizational arrangements and EMP implementation arrangements

6. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. Shaanxi Provincial Railway Investment Group will be the project implementation entity (PIE) and responsible for implementing the subproject and administering and monitoring contractors and suppliers.

7. The PIE will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. The PIE will ensure

85 that the EMP is implemented proactively and responds to any adverse impacts beyond those foreseen in the IEE. The PIE will also attend to requests from relevant agencies and ADB regarding the mitigation measures and monitoring program. It will nominate dedicated, trained, and qualified environment specialists to (i) supervise contractors and ensure compliance with the EMP; (ii) conduct regular site inspections; (iii) conduct periodic environmental quality monitoring in compliance with the approved monitoring plan; (iv) act as local entry point for the project GRM; and (v) submit environmental monitoring reports to the PMO and EA semi-annually during construction and annually during operation. The PIE will also engage a local environmental monitoring station for environmental monitoring.

8. ADB will conduct regular review missions. PMO will review semi-annual/annual environmental monitoring reports submitted by PIE and submit them to ADB. ADB will review the reports and disclose them on ADB’s website. If the subproject is incompliance with the EMP’s requirements, appropriate corrective actions shall be taken following ADB’s requirements.

9. Roles and responsibilities for the EMP implementation are presented in Table 1.

Table 1: Project implementation and management organizations Organization Role and Responsibility EA Coordinating and overseeing project preparation and implementation. Coordination of strategic issues at regional or national level. Providing policy guidance and facilitation during implementation. Coordination with other involved authorities including EEB, development and reform committee, finance bureau, land bureau etc. PMO/IA Main responsibilities include: Responsible for subproject implementation under the guidance of EA Prepare management and operation procedures to meet the relevant national and ADB requirements Organize capacity building and training Overseeing the project program and activities of the PIE in the implementation of the project outputs Monitoring the project’s physical and financial progress and compliance with project’s reporting requirements, ensuring project progress reports are prepared and submitted to ADB on time Solve the compliant received Coordinating ADB’s review missions and meeting the requirements of ADB Regularly visit the sites to check the compliance Review the environmental monitoring reports by PIE then submit them to ADB Requiring PIE to prepare corrective action plans in the event of noncompliance with EMP or EMoP Review environmental monitoring reports, then submit to ADB PIE Main responsibilities include: Contracting and administering design institute, and procurement agency Contracting and administering contractors and suppliers. Preparing subproject progress reports and submit to PMO Operation and maintenance of the subproject Preparing semi-annual environmental monitoring reports during construction and annual report during operation, and submit to PMO Ensuring compliance with EMP, EMoP, engaging an external environmental safeguard consultant if necessary Operation and maintenance of the subproject Coordinating with PMO in developing subproject management procedures and detailed implementation plan, and monitoring achievement

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Obtain necessary approvals from local authorities including EEB. Compliance with PRC laws and regulation and ADB’s prohibited investment activities list EMC A qualified independent environmental monitoring station will be recruited to implement the ambient monitoring portion of the EMoP. ADB Providing the EA and IA with guidance to ensure smooth subproject implementation and achieve the desired development impacts and their sustainability Conducting regular review missions Monitoring the implementation of EMP and EMoP Reviewing environmental monitoring reports and disclosing them on ADB website Updating the subproject information documents for public disclosure at ADB website, including the safeguards documents. Requiring PMO and PIE to develop corrective action plan for any non-compliance issues ADB = Asian Development Bank, EEB=Ecology and Environment Bureau, EMC= Environmental monitoring company EMP = Environmental Management Plan, EMoP= Environmental monitoring plan.

C. Summary of Potential Environmental Impacts and Mitigation Measures

10. The potential impacts of the subproject during pre-construction, construction and operation have been identified and appropriate mitigation measures developed (see Chapter V of the IEE). Potential impacts and the mitigation measures are presented in Table 2.

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Table 2: Environment Impacts and Mitigation Measure

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by A. Detailed Design Phase Environmental mitigation and PIE PMO, EA Detailed pollution control measures Design identified in the IEE, the EMP Budget and the domestic EIA will be incorporated into the detailed Include design. A health and safety mitigation measures and management plan will be developed to include monitoring appropriate measures to ensure program in detailed risks to community is negligible and OHS risks can be managed design to acceptable level. Recommendations in the detailed design will be implemented and included in Incorporate the bidding documents. Mitigation Environmental mitigation PIE PMO, EA Detailed Measures and Design Monitoring in Include measures identified in the IE, EMP and the domestic EIA will Budget Detailed mitigation be incorporated in the bidding Design and measures and Bidding and monitoring documents and will be included in contract documents for civil Contracting program in constructions and equipment bidding documents installations. All contractors shall be required to strictly comply with the EMP. The environmental monitoring PIE PMO, EA Detailed program will be incorporated Design into the design to ensure that Budget environmental impacts are Environmental closely monitored and activities monitoring incorporated of the project construction and operating are closely into design. supervised against the PRC environmental laws, regulations and standards, ADB SPS 2009, and the project EMP. Grievance Impacts on In accordance with the GRM PIE PMO, EA, PMO Redress project presented in Chapter VIII, a staff ADB Operating Mechanism Affected member from PIE and PMO will Budget (GRM) Persons be assigned to be overall responsible for the GRM; GRM training will be provided for PMO, PIE and GRM access points addresses and emails will be disclosed to the public.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by B. Construction Phase Flora and Removal of A greening plan will be Contractor, PMO, EA Contractor Fauna vegetation implemented: PIE construction Site vegetation plans will be budget developed using appropriate native species. During construction, construction working areas will be demarcated to prevent encroachment and damage to adjacent areas. Wastewater Surface and Good wastewater management Contractor, PMO, EA, Contractor groundwater practices as set out in EHS PIE ADB construction contamination Guidelines on Construction and budget from Decommissioning and EHS construction General Guidelines: wastewater, Worker camp will be installed and domestic with sufficient toilets which will water be provided for the workers and domestic wastewater will be treated in septic tank and discharged to the municipal sewerage system on a regular basis. Once the construction starts, if it is found that toilets are not enough or there are female workers, more toilets will be provided. Construction wastewater will be directed to temporary detention and settling ponds, and then treated water will be partly recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer system and the waste residue in the tank is cleared and transported to designated certificated and engineered landfills by the local sanitation department personnel. If needed, polyacrylamide flocculent will be used to facilitate particle settling. All discharged construction wastewater will to be treated to meet the appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by treated in the municipal WWTP. All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil- containing wastewater. All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation. Storage facilities for fuels and oil within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits. The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88). Erosion and Soil erosion, Good practice construction Contractor, PMO, EA Contractor Spoil spoil disposal erosion controls and site PIE construction maintenance as set out in EHS budget Guidelines on C&D and EHS General Guidelines: At construction site, the potential for storm water runoff will be assessed and appropriate storm water drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention and settling ponds to

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by control topsoil runoff. Land excavation and filling will be balanced so as minimize the requirement for fill material transportation. During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. Temporary spoil storage sites will be identified, designed, and operated to minimize impacts. Spoil sites will be restored at the conclusion of storage activities. Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to Xi’an Chang’an District Spoil disposal site. Spoil and aggregate piles will be covered with landscape material and/or regularly watered. Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal. Construction and material handling activities will be limited or halted during periods of rains and high winds. Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass. Air Pollution Dust, vehicle The following air quality Contractor, PMO, EA Contractor emissions management measure and PIE construction construction good practice as budget set out in EHS Guidelines on C&D and EHS General Guidelines will be implemented: Water will be sprayed on active

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by construction sites including where fugitive dust is being generated on a daily basis, and more frequently during windy days. Transport vehicles will be limited to low speeds in construction sites. Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. Construction site roads will be well maintained and watered and swept on an as-needed basis. Construction site road entry points will be equipped with truck drive through wash ponds. Transport routes and delivery schedules will be planned to avoid densely populated and sensitive areas, and high traffic times. Store petroleum or other harmful materials if any in appropriate places and cover to minimize fugitive dust and emission. Provide regular maintenance to vehicles in order to limit gaseous emissions (to be done off-site). Temporary fencing will be erected around dusty activities. Construction spoil, aggregate and other construction materials will be temporary stored using containers, but they may still have the potential to generate dust. Thus, containers will be covered and/or watered if necessary. Powdered materials such as cement and lime will be stored in sealed bags or containers. Muddy or dusty materials on public roads outside the exits of works areas will be cleaned

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by immediately. On-site asphalting and concrete batching are prohibited. Drilling sites will be fenced during drilling. Fence will be installed at site boundaries and dust monitoring will be implemented at sensitive receptors to ensure compliance. Disturbed site will be revegetated as soon as possible after the completion of works. Noise Impacts from To ensure construction activities Contractor, PMO, EA Contractor construction meet PRC noise standards PIE construction noise on (Noise Standards for budget sensitive Construction Site Boundary, GB resources 12523-2011) and to protect workers, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D and EHS General Guidelines will be implemented: Construction activities will be planned in consultation with local authorities and communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in the least disturbance. Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of such night time activities in advance. When undertaking construction planning, simultaneous high-

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by noise activities will be avoided, and high noise activities will be scheduled during the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from operating at the same location. Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise. Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines. Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. Vehicles transporting construction materials or waste will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. Special attention will be paid to protect sensitive sites near the subproject site. High noise construction activities will be positioned as far away from sensitive sites as possible. Drilling site will be enclosed by fence to reduce noise, if necessary.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Solid Waste Inappropriate The following solid waste Contractors, PMO, EA Contractor Waste management measure and local construction Disposal construction good practice as sanitation budget set out in EHS Guidelines on departments C&D and EHS General (domestic Guidelines will be waste), implemented: licensed Wastes will be reused or waste recycled to the extent possible. collection Littering by workers will be companies prohibited. (construction Excavated soil will be backfilled waste) onsite to the extent possible. Excess spoil that cannot be used on-site will be transported to Xi’an Chang’an District Spoil Disposal Site. Domestic waste containers will be used for domestic waste collection at work sites. Domestic waste will be collected on a regular basis by the local sanitation departments and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil, waste from drilling and contaminated soils that remain on the site after construction. Storage facilities for fuels and oil, if any will be within secured

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by areas on impermeable surfaces provided with dikes with a 110% volume, and at least 300 m from drainage structures and important water bodies. A standalone site within the storage facility will be designated for hazardous wastes. Signs will be placed at hazardous materials storage sites to provide information on type and name of chemicals and hazardous materials. Socioeconomic Community Transportation routes and Contractors, PMO, EA Contractor Resources Disturbance delivery schedules will be PIE construction and Safety planned during detailed design budget to avoid densely populated and sensitive areas and high traffic times. Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. Signs will be placed at construction sites in clear view of the public, warning people of potential dangers such as moving. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate. Socioeconomic Worker Contractors will implement Contractor, PMO, EA LIEC Resources Occupational adequate precautions to protect PIE Budget Health and the health and safety of their Safety workers: Each contractor will undertake H&S risk assessment of construction works and implement relevant construction phase EHS plan in line with construction good practice as Contractor set out in EHS Guidelines on construction C&D and Occupational H&S budget guidelines.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Identify and minimize the causes of potential hazards to workers. Implement appropriate safety measures. Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and storage, handling and disposal of hazardous waste. Induction will be conducted before construction and no worker is allowed on site without induction. Ensure that all equipment is maintained in a safe operating condition. Provide appropriate PPE to workers. Implement COVID-19 prevention measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID- 19. Provide procedures for limiting exposure to high noise or heat working environments in compliance with PRC occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and World Bank EHS Guidelines. Ensure regular safety meetings with staff. Physical As yet A construction phase chance Contractors PIE In the event Cultural unknown find procedure will be supported that a PCR Resources PCRs may be established and activated if any by local is damaged if chance finds of PCRs are Cultural discovered, proper encountered: the direct

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by precautions construction activities will be Heritage cost for are not taken immediately suspended if any Bureau comp- PCRs are encountered; ensation to destroying, damaging, contractor defacing, or concealing PCRs will be will be strictly prohibited in covered by accordance with PRC a special regulations; fund to be local Cultural Heritage Bureau devel-oped will be promptly informed and for cultural consulted; and, relic construction activities will protection. resume only after thorough investigation and with the permission of the local Cultural Heritage Bureau. In case of any PCR is found, ADB SPS 2009 requirements as well as PRC laws and regulations will be followed.

C. Operation Phase

Air Pollution Vehicle Diesel for shunting locomotive PIE PMO, PIE emission, must meet the PRC Class VI EEB, EA operation cooking fume standard; budget Good maintenance and regular inspection of shunting locomotive; Good operation of the shunting locomotive; Keep good maintenance of vehicles and road; Landscape plants will be planted at the subproject site to improve the ambient air quality. Cooking fume will be treated by oil fume purifier with an exhaust air volume of 2,000 m3/h and a removal efficiency at 75%, then discharged by flue pipe. Wastewater Discharge of Domestic wastewater PIE PMO, EA, PIE Wastewater generated by the subproject is EEB operation pretreated by the septic tank budget and discharge to domestic sewer system. The wastewater generated by this subproject will be finally discharged into the municipal wastewater treatment plant (WWTP) for treatment.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Solid Waste Collection and Waste generated during PIE, District PMO, EA, PIE Disposal operation will be recycled as Sanitation EEB operation much as possible; Departments budget Domestic waste bins will be provided and domestic waste will be routinely collected by the local sanitation department for recycling, if possible, or final disposal at Xi’an Lantian waste incineration plant; Kitchen waste will be collected, transferred and disposed by third party certificated company.; Oily waste is classified as hazardous waste and will be collected, transported and treated by a certified 3rd party hazardous waste treatment company.; Noise Impact on Low-noise equipment will be PIE PMO, EA, PIE Sensitive used as far as possible, and EEB operation Receptors noise reduction measures such budget as noise elimination, shock absorption, insulated enclosures and sound dampening materials on exterior walls will be implemented. All equipment will be properly maintained in order to minimize noise. Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S. Layout of subproject sites will be reasonable planned to reduce noise. Noise monitoring will be conducted at the site boundaries and sensitive receptors for compliance.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Community Risks to Operation phase EHS plan and PIE PMO, EA PIE and Workers and traffic management plan will be operation Occupational Community developed and implemented budget Health and and workers will be trained Safety regularly on their implementation. The nearby communities will be informed of the potential risks and the emergency response plan. PPE including goggles, gloves, safety shoes will be provided to workers. Noise protection equipment will be provided to workers in high-noise area. Implement COVID-19 prevention measures, including disinfection/cleaning of offices, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff is infected with COVID-19. Provide training to workers on occupational health and safety, and emergency response. Transporting vehicles will slow down to 30 km/h and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. Regular maintenance of vehicles to minimize potential accidents caused by equipment malfunction. Subproject sites will be fence with restricted public access.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Emergency Emergency A draft emergency risk and PIE PMO, EA PIE Response Response response has been established operation in accordance with the budget “National Environmental Emergency Plan” (24 January 2006), other relevant PRC laws, regulations and standards, as well as World Bank EHS Guidelines and ADB’s SPS 2009 and will include measures in the World Bank EHS guidelines with respect to occupational and community health and safety. The plan must be established and in place before the plant is operational. Indicative plan requirements are as follows: − Procedures for responding to different types of emergency situations will be identified in the response plan. − Emergency exercises will be conducted and they should include different emergency scenarios. Training Requirements − Appropriate operating and maintenance employees will be trained to ensure that they are knowledgeable of the requirements of emergency response plan. Annual Emergency Simulation − Simulated emergency exercises will be conducted at least annually. Communication with Public Officials − When an emergency resulting in a hazard to the public safety occurs, the local fire department, police, the city medical emergency center and other relevant public officials should be notified. An emergency call list will be prepared and make it available at the plant control room.

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D. Environment Monitoring Plan

11. There are three types of project monitoring in the EMP.

i) Compliance monitoring. It is conducted by PMO.

ii) Internal monitoring. It is conducted by PIE for internal environmental monitoring including air quality and noise monitoring during the construction phase, and noise monitoring during the operation phase.

iii) External monitoring. It is conducted by qualified environmental monitoring company, including monitoring of ambient air and noise during construction phase, and noise monitoring during operation phase.

12. ADB will review the compliance of the subproject based on the semi-annual/annual environmental monitoring reports submitted by the PMO and site visits. The monitoring and reporting arrangements for this subproject are listed below.

(1) Project preparation review

13. Before the subproject starts construction, PIE will evaluate the preparations for the environmental management in a series of indicators (See Table II) and report the assessment results to ADB and PMO. This assessment needs to prove that before the subproject starts, all environmental commitments are implemented, environmental management systems are in place, or corrective actions are in place to ensure that PIE meets the requirements. Some of these commitments are particularly important because some of the information related to them is not submitted in the TA stage, or they are not properly resolved due to the late submission in the TA phase.

Table 3: Evaluation values of project preparation phase Evaluation Criteria Indicator Is environmental supervision in The EIA institute is hired (IA) Yes No place? Is it consistent with loan The borrower must ensure that the project design and EMP are Yes No agreements and consistent with the loan agreement loan guarantees? Public Adequate public participation survey Yes No participation effectiveness The GRM was effectively established Yes No Does the contract The bidding documents and contracts shall list the environmental contain protection and safety guarantees that need to be observed in theYes No environmentally loan guarantee. safe content

Site construction The PIE has the site construction planning Yes No planning

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Provide documentation that the solid waste disposal unit has Solid waste sufficient capacity and willingness to accept the solid wasteYes No management (including domestic waste, hazardous waste, etc.)

Financial support PIE need to ensure the funds to implement EMP Yes No for EMP

(2) Project monitoring

14. The environmental monitoring plan of this subproject is shown in Table 4, which stipulates the scope, location, parameters, duration and frequency of monitoring during construction and operation phase, and the corresponding responsible units. Internal environmental monitoring includes noise monitoring during the construction phase, and external monitoring includes dust, noise and wastewater monitoring during construction and monitoring of noise and wastewater during operation.

15. The environmental monitoring implementation standards are shown in Table IV. The results that exceed limits of the standard should be highlighted in the monitoring report. The monitoring results are first submitted to the PIE, who will then incorporate it in the semi-annual environmental monitoring report during construction and annual report during operation, and submit them to PMO and PMO will review the reports and submit them to ADB.

Table 4: Environmental Monitoring Plan Cost Monitoring Monitoring Executive Regulatory (ten Project Indicator location frequency agency Authority thousand yuan) Construction phase (1.5 year) Dust TSP Site Quarterly Environmental PIE 9.0 boundaries monitoring agency Noise Equivalent Site Quarterly Environmental PIE 12.0 continuous A- boundaries with one monitoring level sound daytime agency Leq noise and one nighttime noise. Wastewater COD, pH etc. Wastewater Quarterly Environmental PIE 6.0 following PRC discharge during monitoring requirements point of the construction agency construction site Solid Waste Compliance Waste Monthly PIE, local NA inspection of collection during sanitation implementation and disposal construction department of solid waste sites. management measures On a regular Contractor basis Waste collection by local sanitation department Hazardous and Compliance Storage Monthly Contractor Polluting inspections of facilities for during Materials implementation fuels and oil. construction of hazardous Vehicle and PIE, EEB NA materials equipment management maintenance measures areas. Flora and Compliance Construction Monthly Contractor NA Fauna inspection of site during land clearing to construction ensure PIE, EEB mitigation measures are being implemented Socioeconomic Compliance Construction Monthly Contractor PIE, EEB NA Impacts inspection of site during implementation construction of traffic season control measures

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EHS Compliance Construction Monthly Contractor PIE, EEB NA inspection of site during EHS measures construction including season records on near miss, minor, major, fatal accidents and an Emergency Response Plan Total construction phase (1.5 year) 27.0

Operation phase (first 2 years) Noise Equivalent Site One Environmental PIE, EEB 16.0 continuous boundaries measuring monitoring A-level every six agency sound Leq months, and one time in the daytime and the other in the nighttime. Environmental PIE 6.0 COD, pH etc. Wastewater monitoring following discharge Wastewater Quarterly agency PRC point of the requirements sites EHS Compliance Construction Monthly inspection of site EHS measures including records on EEB, other near miss, PIE relevant NA minor, major, authorities fatal accidents and an Emergency Response Plan Total operation phase of Project (2 years) 22.0 Total 49.0

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Table 5: Monitoring Indicators and Applicable Standards Stage Indicator Standard Dust at the site boundary Dust Emission Limit at Construction Site Boundary (DB61/1078- TSP 2017) Noise limits for Construction Environmental Noise Emission Standards for Construction Plant construction plant phase Boundaries (GB12523-2011) boundaries Leq Waste water Integrated Standards for Wastewater Discharge (GB8987-1996)

Site boundary noise Noise Emission Standards for Industrial Enterprises at Plant Operation Leq Boundary (GB 12348-2008) phase Waste water Integrated Standards for Wastewater Discharge (GB8987-1996)

(3) Compliance assessment

16. PMO conducts an independent assessment of the subproject's EMP conformity and PMO can hire LIEC if necessary. The PIE will prepare environmental monitoring reports which should include compliance of the subproject with the EMP and local laws; independent evaluation results (the PIE and its contractors are in compliance with the EMP and a qualified environmental monitoring agency issue environmental monitoring results); environmental-related implementation issues discovered and necessary corrective actions; the operation and performance of the subproject’s GRM; the capacity enhancement and training conducted and the compliance of all terms of the subproject.

Table 6: Reporting requirements Reporting Report Submitted to Frequency party Construction phase

Environmental Semi-annual Environmental monitoring report PIE PMO, EA monitoring report

Environmental Semi-annual Environmental monitoring report PMO/EA ADB monitoring report Operation phase Environmental monitoring report Environmental (first two years of the project PIE PMO, EA Annual report monitoring operation phase) Environmental monitoring report Environmental (first two years of the project PMO/EA ADB Annual report monitoring operation phase)

E. Institutional Strengthening and Capacity Building

17. The institutional strengthening and capacity building focus on the safeguard requirements of relevant PRC laws and regulations and the ADB SPS 2009. The training will focus on the ADB SPS 2009; PRC safeguard requirements; development and implementation of EHS plans during construction and operation; implementation of the EMP, the EMoP, and the GRM; and worker and community health and safety issues and measures (Table 7).

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Table 7: Institutional strengthening and training program # Training Train Attend Day Budget Contents Times Perso Topic ers ees s (USD) ns ADB and PRC laws, regulations and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety laws, policies, standards and regulations Training 2 (once Develop Constru − International environmental, prior to ment ction health and safety management start of Phase practice in civil irrigation and drainage construct Fixed Environ Contrac construction ion, and costs: ment, LIEC tors, GRM 2 30 then $2000 Health PIE − GRM structure, responsibilities, once per and and timeframe during course Safety − Types of grievances and construct delivery x Training eligibility assessment ion) 2 = Implementation of Construction $ 4,000 Phase EMP − Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions ADB and PRC laws, regulations and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety laws, policies, standards and Training regulations Develop 2 (once ment Operatio − International environmental, prior to n Phase health and safety management start of Environ practice in civil irrigation and drainage operation Fixed ment, operation , and costs: Health LIEC PIE GRM 2 30 then $2000 and − GRM structure, responsibilities, once per Safety and timeframe during course Plan − Types of grievances and second delivery x Training eligibility assessment year) 2 = Implementation of Operation Phase $4,000 EMP

− Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions Total 6 60 $4,000

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F. Performance Indicators

18. Performance indicators (Table 8) have been developed to assess the implementation of the EMP. These indicators will be used to evaluate the effectiveness of environmental management during the subproject implementation.

Table 8: Performance Indicators

No. Description Indicators

(i) Appoint appropriately qualified environmental and social staff. 1 Staffing (ii) 3rd party environmental monitoring entity engaged.

(i) Environment mitigation cost during construction and operation is sufficiently and timely allocated. 2 Budgeting (ii) Environment monitoring cost is sufficiently and timely allocated. (iii) Budget for capacity building is sufficiently and timely allocated.

(i) Compliance monitoring is conducted as per EMP and EMoP. 3 Monitoring (ii) Construction phase and operation phase environmental monitoring is conducted by environmental monitoring company.

(i) PMO review the implementation of EMP. 4 Supervision (ii) ADB review environmental monitoring reports.

(i) Semi-annual/annual environmental monitoring reports prepared by the PIE are submitted to PMO 5 Reporting (ii) PMO submit semi-annual/annual environmental monitoring reports to ADB.

Capacity (i) Training on ADB safeguard policy, EMP implementation, and GRM is 6 Building provided during subproject implementation.

(i) GRM contact persons are designated at the PIE and the PMO, and GRM Grievance contact information disclosed to the public before construction. 7 Redress (ii) All complains are recorded and processed within the set time framework Mechanism in the GRM of this IEE.

Compliance with (i) Project complies with the PRC’s environmental laws and regulations and 8 PRC standards meets all required standards.

G. Cost budget

19. The implementation cost of the EMP includes three parts: mitigation measures,

108 environmental monitoring and training (Table 9). The following costs are excluded from the budget: (i) revision and adjustment of the design; (ii) cost of infrastructure related to the environmental and public health, which has already been included in the project’s direct investment; (iii) Remuneration of PIE environmental and social staff. All the budget is estimated based on project experience similar to this project.

Table 9: Estimated Budget for Implementing EMP Unit: 10,000 yuan Mitigation Monitor Item GRM Training (Table 7) LIEC Total measures (Table 4)

Budget 5.0 45 49.0 8.4 30 137.4

Total 5.0 45 49.0 8.4 30 137.4

H. Mechanisms for Feedback and Adjustment

20. The effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. If, during compliance inspections and monitoring, substantial deviation from the EMP is observed, the PMO and PIE will propose appropriate changes to the EMP and the environmental monitoring plan.

21. Any EMP adjustments will be subject to ADB review and approval and ADB may pursue additional environmental assessment and, if necessary, further public consultation. The revised EMP with ADB confirmation is subject to reposting on the ADB’s website as the ADB public communications policy requires. The revised EMP will be passed on to the contractor(s) for implementation.