Environmental Monitoring Report

Project Number: 40051 September 2011

PRC: Urban Development Project

Prepared by Baiyin Environmental Protection Bureau & EASEN International Co., Ltd. Gansu Province, PRC

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

PEOPLE’S REPUBLIC OF GANSU BAIYIN URBAN DEVELOPMENT PROJECT ADB LOAN LOAN NO. 2407-PRC

Environmental Monitoring Report

(January through June 2011)

Prepared for

Asian Development Bank

by

BAIYIN ENVIRONMENTAL PROTECTION BUREAU

and

EASEN INTERNATIONAL CO., LTD.

September 2011

ABBREVIATIONS

ADB Asian Development Bank BCCB Baiyin City Construction Bureau BDG Baiyin Government BDRC Baiyin Development and Reform Commission EASEN Easen International Co., Ltd. EA Executing Agency EIA Environmental Impact Assessment BEPB Baiyin Municipal Environmental Protection Bureau BFB Baiyin Municipal Finance Bureau BHIPMC Baiyin High-tech Industrial Park Management Committee BLMB Baiyin Municipal Land Management Bureau BMG Baiyin Municipal Government GBUDP Gansu Baiyin Urban Development Project GPDRC Gansu Provincial Development and Reform Commission GPG Gansu Provincial Government GSLA Gansu Provincial Land Management Agency IA Implementing Agency LCCDI City Construction Design Institute MOFPRC Ministry of Finance People’s Republic of China ICB International Competitive Bidding IS International Shopping NCB National Competitive Bidding PLG Project Leading Group RP Resettlement Plan PDG Government PDURCB Pingchuan District Urban and Rural Construction Bureau PMO Project Management Office PPTA Project Preparation Technical Assistance PPMS Project Performance Monitoring System BWHC Baiyin West Heating Co., Ltd PRC The People’s Republic of China

i ADB Loan No. 2407-PRC

CONTENTS

I. INTRODUCTION ...... 1 A. Basis of the Report ...... 1 B. Environmental Procedure Review ...... 2 C. Legal Requirements ...... 3

II. SOUTHERN BAIYIN INFRASTRUCTURE SUBPROJECT...... 5 A. Scope of Subproject ...... 5 B. Subproject Progress ...... 5 C. Environmental Management Office ...... 5 E. Mitigation Measures Implemented and Compliance Assessment ...... 7 F. Issues and Recommendations ...... 8

III. ROAD IMPROVEMENTS ...... 9 A. Scope of the Subproject ...... 9 B. Subproject Progress ...... 9 C. Environmental Management Office ...... 9 D. Environmental Monitoring ...... 9 E. Mitigation Measures Implemented and Compliance ...... 11

IV. PINGCHUAN DISTRICT ROAD IMPROVEMENTS SUBPROJECT ...... 13 A. Scope of the Subproject ...... 13 B. Subproject Progress ...... 13 C. Environmental Management Office ...... 13 D. Environmental Monitoring ...... 13 E. Mitigation Measures Implemented and Compliance ...... 16 F. Issues and Recommendations ...... 17

V. Baiyin District Heating Services Subproject ...... 18 A. Scope of the Subproject ...... 18 B. Subproject Progress ...... 18 C. Environmental Management Office ...... 18 D. Environmental Monitoring ...... 18 E. Mitigation Measures Implemented and Compliance ...... 22 F. Issues and Recommendations ...... 23

VI. CONCLUSIONS ...... 24

LIST OF APPENDIXES 1. Monitoring Station Location Maps 2. Summary Information of Closed Small Boilers

ii ADB Loan No. 2407-PRC

I. INTRODUCTION

1. Based on the Project Agreement for the Gansu Baiyin Urban Development project (the Project), the Government of Gansu Province, Baiyin Municipal Government, and each Project Implementation Agency (PIA) shall ensure that (i) the Project be constructed and operated in accordance with the national and local environmental regulations and guidelines, ADB’s Environmental Policy (2002) and the Environmental Impact Assessment reports (EIAs); (ii) any adverse environmental impacts arising from the construction and operation of the Project facilities be minimized by implementing the mitigation measures, environmental monitoring program and other recommendations presented in the EIAs; and (iii) the implementation of the environmental management plan (EMP) and any violation of safety or environmental standards, if any, be regularly reported to ADB.

2. Environmental specialists from the consultant and the Baiyin PMO visited project sites during this reporting period. During their visits, in depth discussions were made with the PIAs during which particular attention was focused on their responsibilities for environmental monitoring and preparing monitoring reports. The Baiyin PMO has contracted with Baiyin Municipal Environmental Monitoring Station of Baiyin Environmental Protection Bureau to monitor the environmental conditions in accordance with the EIAs.

3. The Gansu Baiyin Urban Development project consists of five subprojects, of which four construction subprojects involve environmental monitoring, including (i) Southern Baiyin Infrastructure, (ii) Baiyin District Road Improvements, (iii) Pingchuan District Road Improvements, and (iv) Baiyin District Heating Services. The construction for these four subprojects has commenced. The fifth subproject is the Capacity Development and Institutional Strengthening, which is a consulting service and does not involve any environmental monitoring.

4. This semi-annual environmental report describes the implementation of the environmental monitoring and mitigation measures recommended in the EIAs, analyzes environmental data collected from related subprojects by the end of June 2011, and provides recommendations regarding the existing issues.

5. This environmental monitoring report covers the following areas: (i) documentation review and compliance assessment with applicable environmental regulations, (ii) environmental management institutional structure and responsibilities, (iii) mitigation measures undertaken to minimize adverse environmental impacts arising from the construction of each subproject, (iv) environmental monitoring results and analyses, and (v) conclusions and recommendations.

A. Basis of the Report

6. This semi-annual environmental report has been prepared based on the data and information from the following sources:

1 ADB Loan No. 2407-PRC

¾ Environmental Monitoring Reports provided by the Baiyin Environmental Monitoring Station of the Baiyin Environmental Protection Bureau; EIAs for all subprojects; ¾ Environmental supervision reports provided by each PIA; ¾ EMPs submitted to ADB; ¾ Project Agreement; and ¾ Relevant environmental laws and regulations.

B. Environmental Procedure Review

7. Each of the contractors, construction supervision companies, and the PIA’s designated staff from the site management team plays an important role in environmental monitoring and supervision. The responsibilities of the staff includes day-to-day site environmental monitoring of their own contracts, implementation of mitigation measures as indicated in the environmental action plan, and reporting of the site’s environmental performance as specified in the contract including self-inspection and self-monitoring.

8. At the construction stage, the construction supervision companies are responsible for the preparation and submission of monthly environmental supervision reports; meanwhile, the environmental monitoring agency is responsible for the monitoring of environmental parameters and preparing environmental results reports. The PMO has designated Ms. Zhang Qun, with an environmental engineering background, to serve as an environmental officer for this Project. The PMO, with the assistance from Easen International, the implementing consulting firm, is responsible for compiling the semi-annual environmental monitoring reports.

9. Specific responsibilities of the PIAs, contractors, local environmental monitoring station, and construction supervision companies are defined as follows:

PIAs: ¾ Develop environmental section of the contract with the assistance from the consultant; ¾ Provide training to contractors and all other related environmental personnel; ¾ Visit project sites and review results; ¾ Resolve environmental complaints, if any; ¾ Develop and implement pollution prevention measures; ¾ Implement environmental monitoring plans; ¾ Provide monthly environmental monitoring reports to the PMO; ¾ Implement mitigation measures including environment, health and safety; and ¾ Arrange for environmental meetings as necessary.

2 ADB Loan No. 2407-PRC

Local Environmental Monitoring Station: ¾ Prepare environmental monitoring plan; ¾ Conduct environmental monitoring; and ¾ Develop environmental monitoring reports based on the sampled data.

Supervision Companies (during construction period): ¾ Supervise implementation of environment protection measures; ¾ Perform environmental management responsibilities; ¾ Receive complaint calls; and ¾ Report environmental issues on sites.

Contractors (during construction period): ¾ Implement environmental mitigation measures; ¾ Provide basic sanitation facilities to workers; ¾ Perform domestic sewage treatment if it is generated at construction sites; ¾ Perform solid waste management; ¾ Perform noise and dust control measures; ¾ Provide personal protective equipment for workers; and ¾ Take measures to ensure that construction equipment meets relevant national or local emissions and noise standards.

C. Legal Requirements

10. The following provides a list of some applicable PRC environmental regulations and standards and ADB environmental policy.

¾ Air Pollutant Emission Standards for Boiler, GB13271-2001 ¾ Integrated Air Pollutant Emission Standards, GB16297-1996 ¾ Environmental Quality Standards for Surface Water, GB 3838-2002 ¾ Ground Water Quality Standards, GB/T 14848-93 ¾ Noise Limits for Construction Site, GB 12523-90 ¾ Integrated Wastewater Discharge Standards, GB 8978-1996 ¾ Noise Standards at Boundary of Industrial Enterprises, GB 12348-2008 ¾ Ambient Air Quality Standards, GB 3095-1996 ¾ Standard of Environmental Noise in Urban Area, GB 3096-93

3 ADB Loan No. 2407-PRC

¾ Environmental Quality Standards for Soils, GB 15618-1995 ¾ Gansu Wastewater and Waste Gas Discharge Standards, DB21-60-89 ¾ Water Quality Standard for Wastewater to be Discharged into City sewage System, CJ 1082-1999 or CJ 0082-1999 ¾ ADB Environmental Policy, November 2002

4 ADB Loan No. 2407-PRC

II. SOUTHERN BAIYIN INFRASTRUCTURE SUBPROJECT

A. Scope of Subproject

11. Under this component, the Project will develop, as part of the Southern Baiyin Industrial Zone (SBIZ), 4.7 km2 of industrial land with basic public infrastructure, including 18.5 km of primary and secondary roads and related water supply pipelines, drainage pipelines and sewers, heating supply pipelines, optical-fabric cable and electricity distribution lines, lighting, and public green areas.

B. Subproject Progress

12. There are three procurement packages (2 NCB and 1 ICB) under the ADB loan. They are all civil work packages and comprised as follows: C01 - earth work, C02 - Southern Baiyin Infrastructure #1, and C03 - Southern Baiyin Infrastructure #2.

13. The PMO and the IA, BHTIP Management Commission reported that scope of this component needs to be optimized to (i) avoid removal of key facilities of Yinguang Company such as evaporation pond and explosive warehouse; (ii) avoid relocation of Cha Chuan Channel which provides irrigation water for more than 2,000 mu farm land for downstream villages, and avoid acquisition of farmland on southern of Nanweierlu Road; and (iii) improve land use efficiency of the west part of the industrial park. Optimization of the scope will resulted in reduction of 6.5 km road construction works for four roads: Nansanhuan Road, Nansihuan Road, Nanjingerlu Road and Nanweisanlu Road, and the industrial land area to be developed will be reduced to 4.7 km2. The proposed change was approved by Baiyin Municipal Development and Reform Committee (Baiyin DRC) in April 2010.

14. The planned total investment for Southern Baiyin Infrastructure Component was CNY 460.333 million of which the engineering construction investment was CNY 381.7975 million.

C. Environmental Management Office

15. The environmental management office (EMO) is required to be established to monitor the implementation of the EMP. The Baiyin High-tech Industrial Park Management Committee (BHIPMC) has appointed Mr. Zeng Chengfu to be responsible for the environmental management of this subproject during the construction period.

1. Air Quality Monitoring

16. One air quality monitoring location downwind from the construction site of the subproject was selected as the monitoring station and it is located 200 meters from the site boundary. Both TSP and PM10 were monitored for two days each month from January to June 2011, and two samples were taken each day.

17. The results of the air quality monitoring, as seen in Table 1, showed that the minimum value for TSP was 0.231 mg/m3, and the maximum value was 0.433 mg/m3.

5 ADB Loan No. 2407-PRC

Fourteen out of 24 samples (or approximately 58%) have the daily values for TSP higher 3 3 than the national limit of 0.30 mg/m . The minimum value for PM10 was 0.089 mg/m , and the 3 maximum daily value was 0.188 mg/m . Eleven of the 24 PM10 samples (45.8%) were higher than the national limit of 0.15 mg/m3. The average TSP and PM10 values are slightly higher than the values in previous semi-annual environmental monitoring report. The high TSP and

PM10 concentrations were also observed in the previous air quality monitoring data and this is primarily due to high background concentrations, not necessarily due to the construction activities solely. For example, there was no construction activity during January to February

2011 but there are still some higher TSP and PM10 concentrations than the national limits.

Table 1: Air Quality Monitoring Results for Southern Baiyin Infrastructure

( 3 3 Sampling Period Sample ID TSP mg/m ) PM10 (mg/m ) 1-1 0.411 0.146 2011-1-14 1-2 0.365 0.163 1-3 0.377 0.124 2011-1-15 1-4 0.406 0.177 1-1 0.343 0.156 2011-2-22 1-2 0.317 0.144 1-3 0.256 0.188 2011-2-23 1-4 0.243 0.167

1-1 0.433 0.177 2011-3-9 1-2 0.361 0.188 1-3 0.256 0.121 2011-3-10 1-4 0.387 0.133 1-1 0.355 0.156 2011-4-5 1-2 0.378 0.143 1-3 0.245 0.089 2011-4-6 1-4 0.231 0.122 1-1 0.276 0.120 2011-5-21 1-2 0.255 0.090 1-3 0.238 0.133 2011-5-22 1-4 0.344 0.167 1-1 0.333 0.170 2011-6-11 1-2 0.268 0.190 1-3 0.361 0.098 2011-6-12 1-4 0.256 0.120

6 ADB Loan No. 2407-PRC

2. Noise Monitoring

18. Noise was monitored in the areas affected by the subproject around the site boundary during the construction period. The monitoring locations are shown in Figure 1 of Appendix 1. The monitoring lasted for one day each month from January to June 2011, and the equivalent continuous A-weighted sound pressure level (Leq) was tested during daytime from 6:00 to 22:00 and during the night from 22:00 to 6:00.

19. The applicable standard used for noise monitoring and compliance evaluation is the Standard of Noise at Boundary of Industrial Enterprises, GB 12348-2008. The area where monitoring locations were located is the 4th category sound environmental functional area, where upper noise limits for daytime and night are 70 dB (A) and 55 dB (A), respectively.

20. The noise monitoring results, summarized in Table 2, showed that the recorded noise results were in compliance with the standards of 70 dB (A) in daytime and 55 dB (A) at night based on the functional category.

Table 2: Noise Monitoring Results for Southern Baiyin Infrastructure Leq[dB(A)] Daytime Night No. 1-14 2-23 3-10 4-5 5-21 6-11 1-14 2-23 3-10 4-5 5-21 6-11 1# 56.0 57.3 55.1 55.5 54.7 55.5 42.5 42.4 43.0 43.0 44.7 42.5 2# 55.6 57.5 55.2 56.0 55.8 54.6 43.3 41.3 43.3 43.7 43.9 42.3 3# 54.5 56.7 56.4 55.5 56.3 55.7 44.6 42.7 44.8 42.7 44.0 43.4 4# 55.4 55.4 54.5 54.6 54.4 54.0 42.6 42.7 44.5 42.5 41.6 42.4

3. Wastewater Monitoring

21. Since no wastewater is discharged into the municipal sewer from this construction site, monitoring data concerning wastewater discharged into the municipal sewers was not collected during the reporting period.

4. Solid Waste

22. The subproject is earth work is conducted during the construction period. Waste soil excavated during earth work was transported to a designated place and disposed properly.

E. Mitigation Measures Implemented and Compliance Assessment

1. Dust Suppression

23. The Contractor was responsible to implement dust control measures, including developing a dust suppression program for water spraying, and daily water spraying on the construction site to suppress fugitive dusts. Particularly, in dry and windy conditions, water

7 ADB Loan No. 2407-PRC

spraying was conducted more frequently. Construction materials were covered to avoid fugitive dust emissions.

2. Noise Control

24. Construction time was properly planed from 7:00 to 18:00, and night work was forbidden. Construction equipment with low noise was selected to be used during the construction period, and the construction equipment was located as close to the center of the site as possible. Due to the mitigation measures, the noise monitoring results indicated that noise levels are in compliance with the national standards in China.

3. Wastewater Control

25. Wastewater generated from the site was discharged to the municipal sewer system for further treatment to avoid secondary pollution.

4. Solid Waste

26. Truck cleaning facilities were located at the entrance and exit of the construction site to control fugitive soils caused by truck outside the construction area. The soil from the earth work was appropriately used and timely transported out when necessary. A guard net was employed during transportation to avoid fugitive dust. Water spraying was applied following the backfill.

5. Compliance with Safety or Environmental Standards

27. No violations of safety or environmental standards was reported during the reporting period besides the TSP and PMO10 violations identified above.

F. Issues and Recommendations

28. The monitored TSP and PM10 exceeded the national standard, therefore, it’s recommended more air pollution mitigation measures be taken to comply with the national standards. However, based on the background monitoring data, high levels of TSP and PM10 are recorded in Baiyin area. Due to dry climate conditions, baselines levels sometimes exceed the national standards for TSP and PM10.

8 ADB Loan No. 2407-PRC

III. BAIYIN DISTRICT ROAD IMPROVEMENTS

A. Scope of the Subproject

29. This subproject consists of (i) constructing 8 new roads with a total length of 20.12 km, 8 new bridges, 8 culverts, paved asphalt roads measuring 437,691 m2 and 136,642 m2 of footpaths; (ii) building 24,041 m sewage pipelines, 31,176 m storm-water pipelines, 1,241 storm-water and sewage manholes, 1,337 storm-water wells, 42,499.5 m of water supply pipelines, installing 1,106 sets of road lights, and planting 6,108 trees.

B. Subproject Progress

30. There are three procurement packages under the ADB loan for this subproject. Two of them are civil works packages and one is the equipment procurement package. Changes in project scope are: (i) 3.2 km road sections from East Binhe Road and West Binhe Road as per the reprioritized urban transport development plan has been removed. The removed road sections will be constructed at later stage. Baiyin DRC approved the proposed scope change in March 2011. (ii) Extension of rehabilitation works of Fangzhi Road of 451 m to ensure the smooth and constant traffic along the whole road. ADB’s review mission in July 2010 visited the site and noted that that the proposed extension works would be along the existing Fangzhi Road and won’t involve any resettlement. There is no substantial environment impact. Baiyin DRC approved the proposed extension in January 2011. (iii) Add additional rehabilitation and maintenance works for 6 primary or secondary roads in Baiyin District.

31. The planned total investment for Baiyin District subproject was CNY 442,798,900, of which the construction investment was CNY 340,513,100. civil works contract C05 would need to be amended to reflect the extension of Fangzhi Road rehabilitation works. The contract amount will be increased from CNY91, 670,400 to CNY94, 690,437 (3% of original contract price). The contract was extended to 30 June 2012.

C. Environmental Management Office

32. The Baiyin City Construction Bureau (BCCB) has appointed Mr. Wang Dongye as the responsible manager for the environmental management of this subproject as required by the EMP.

D. Environmental Monitoring

1. Air Quality Monitoring

33. Three air quality monitoring locations downwind from the construction site of the subproject were selected as monitoring stations and they were located approximately 200 meters from the site boundary. TSP, PM10, and NOx were monitored for three days in May.

9 ADB Loan No. 2407-PRC

34. The results from the air quality monitoring, as shown in Table 3 below, indicates that 3 the maximum value of TSP was 0.277 mg/m . All nine values for TSP were lower than the 3 3 national standard of 0.30 mg/m . For PM10, the maximum daily value was 0.139 mg/m , which is below the national standard of 0.15 mg/m3. For NOx, the maximum daily value was 0.022 mg/m3, and all of the values were less than the standard value of 0.08 mg/m3. Compare to the previous data from last semi-annual environmental report, average values of

TSP, PM10 and NOx in three locations are lower which means the mitigation measures taken are effective.

Table 3: Air Quality Monitoring Results for Baiyin District Road Improvements (Daily Value) unit: mg/m3 Sampling Sample ID TSP PM NO Period 10 x 1-1 2010-8-4 0.211 0.139 0.021 1-2 2010-8-5 0.209 0.131 0.021 1-3 2010-8-6 0.198 0.088 0.018 3-Day Average 0.206 0.119 0.020 2-1 2010-8-4 0.222 0.091 0.019 2-2 2010-8-5 0.254 0.112 0.020 2-3 2010-8-6 0.277 0.109 0.018 3-Day Average 0.251 0.104 0.019 3-1 2010-8-4 0.198 0.135 0.020 3-2 2010-8-5 0.200 0.076 0.021 3-3 2010-8-6 0.199 0.082 0.022 3-Day Average 0.199 0.098 0.021

2. Noise Monitoring

35. Noise was monitored around the construction sites in January and May 2011. The monitoring locations are shown in Figure 2 of Appendix 1. The noise monitoring at each location lasted for two days, and the equivalent continuous A-weighted sound pressure level (Leq) was sampled during day-time from 6:00 to 22:00 and at night from 22:00 to 6:00 of each day.

36. The applicable standard used for noise monitoring and compliance evaluation is the Standard of Noise at Boundary of Industrial Enterprises, GB 12348-2008. All monitoring locations were located in the 1st category sound environmental functional area, where the upper noise limits for daytime and night are 55 dB (A) and 45 dB (A), respectively.

37. The noise monitoring results, summarized in Table 4 showed that the recorded noise results were in compliance with the standards of 55 dB (A) in daytime and 45 dB (A) at night

10 ADB Loan No. 2407-PRC

based on the functional category. However, the values are higher than the those in last semi-annual environmental report. Mitigation measurements should be enhanced to control noise levels both during daytime and night.

Table 4: Noise Monitoring Results for Baiyin District Road Improvements Leq[dB(A)] Daytime Night Sample Station Jan 12 Jan 13 May 27 May 28 Jan 12 Jan 13 May 27 May 28

#1 48.6 47.2 46.3 46.6 40.5 39.1 38.2 39.4

#2 47.5 47.5 45.5 46.7 42.7 41.1 39.1 40.2

#3 46.6 46.4 47.3 48.4 41.5 40.3 40.3 38.6

#4 45.3 48.3 47.6 47.5 39.6 41.5 39.6 38.5

3. Wastewater Monitoring

38. No monitoring data concerning wastewater discharged into the municipal sewer were collected during the reporting period.

4. Solid Waste

39. Construction wastes and domestic wastes were produced during the construction period and they were placed at the designated site and disposed to the authorized solid waste site.

E. Mitigation Measures Implemented and Compliance

40. Based on the reports from the PIAs and on-site supervision companies, mitigation measures for environmental protection taken by contractors as well as compliance with safety and environmental regulations are summarized below.

1. Dust Suppression

41. The contractor implemented dust control measures including spraying water to suppress dust at the construction site. Particularly, in dry and windy conditions, more water must be sprayed. Construction materials without packages were placed in a transient warehouse or covered to avoid fugitive dust emissions.

2. Noise Control

42. According to mitigation plans, construction time must be properly planned and night work is strictly forbidden. Construction equipment with low noise level was selected during

11 ADB Loan No. 2407-PRC

the construction period, and the construction equipment was located as far as possible from sensitive areas. However, some high noise levels were measured and this is primarily due to other noise sources not related to the road construction activities.

3. Wastewater Control

43. Wastewater generated from the construction sites was discharged into municipal sewers for treatment to avoid secondary pollution.

4. Solid Waste

44. The truck clearing facilities were placed at the site to minimize fugitive dust emissions. The soil from the pipe trenching was used and timely transported away. Other construction waste was also transported out of the construction site.

5. Compliance of Safety or Environmental Standards

45. A slight high noise levels were observed. No other violations of safety or environmental standards were observed and reported during the reporting period.

12 ADB Loan No. 2407-PRC

IV. PINGCHUAN DISTRICT ROAD IMPROVEMENTS SUBPROJECT

A. Scope of the Subproject

46. The Pingchuan Road Improvements subproject includes construction of seven new roads and the rehabilitation and widening of one road with a total length of 17.2 km. This subproject entails road paving and construction of the related drainage pipelines, sewers, and water supply pipelines.

B. Subproject Progress

47. This subproject has two packages and both are for civil works. Both contracts have been awarded and construction activities have substantially completed.

48. The total planned investment for Pingchuan District Component was CNY 215,821,000, of which the construction investment was CNY 165,966,800. So far, the investment was completed by CNY 164 million accumulatively, which accounts for 78.09% of total investment. The construction investment was completed by CNY 133 million, which accounts for 83.05% of planned construction investment. From January to June in 2011, the completed contract amount was CNY 8 million, which accounts for 15.74% of CNY 50,821,000 planned investment in 2011.

C. Environmental Management Office

49. The Pingchuan District Government (PDG) has established an environmental management office according to the requirements of the EMP and appointed Mr. Wang Lianzhong to be responsible for the environmental management of this subproject.

D. Environmental Monitoring

1. Air Quality Monitoring

50. Nine air quality monitoring locations downwind from the construction site of the subproject were selected as monitoring stations. TSP, PM10, and NOx were monitored for three days in May 2011.

51. The results of the air quality monitoring, as seen in Table 5 below, showed that the 3 maximum value of TSP was 0.412 mg/m . Nine values for TSP were higher than the national 3 3 standard of 0.30 mg/m . For PM10, the maximum daily value was 0.145 mg/m which was 3 lower than the national standard of 0.15 mg/m . For NOx, the maximum daily value was 0.028 mg/m3, and all of the values were less than the national standard value of 0.08 mg/m3.

13 ADB Loan No. 2407-PRC

Table 5: Air Quality Monitoring Results for Pingchuan District Road Improvements (Daily Value) Unit: mg/m3 Sampling Sample ID TSP PM10 NOx Period 1-1 2011-5-12 0.222 0.109 0.023 1-2 2011-5-13 0.245 0.123 0.021 1-3 2011-5-14 0.251 0.079 0.018 3-Day Average 0.239 0.104 0.021 2-1 2011-5-12 0.198 0.067 0.026 2-2 2011-5-13 0.212 0.122 0.024 2-3 2011-5-14 0.309 0.138 0.025 3-Day Average 0.240 0.109 0.025 3-1 2011-5-12 0.294 0.069 0.019 3-2 2011-5-13 0.191 0.082 0.019 3-3 2011-5-14 0.234 0.110 0.018 3-Day Average 0.240 0.087 0.019 4-1 2011-5-12 0.221 0.100 0.016 4-2 2011-5-13 0.252 0.122 0.024 4-3 2011-5-14 0.338 0.089 0.023 3-Day Average 0.270 0.104 0.021 5-1 2011-5-12 0.412 0.099 0.018 5-2 2011-5-13 0.319 0.076 0.021 5-3 2011-5-14 0.328 0.069 0.021 3-Day Average 0.353 0.081 0.020 6-1 2011-5-12 0.300 0.121 0.025 6-2 2011-5-13 0.218 0.130 0.018 6-3 2011-5-14 0.322 0.145 0.031 3-Day Average 0.280 0.132 0.025 7-1 2011-5-12 0.210 0.144 0.016 7-2 2011-5-13 0.247 0.139 0.024 7-3 2011-5-14 0.282 0.137 0.015 3-Day Average 0.246 0.140 0.018 8-1 2011-5-12 0.226 0.077 0.023 8-2 2011-5-13 0.229 0.060 0.020 8-3 2011-5-14 0.333 0.084 0.025 3-Day Average 0.263 0.074 0.023

14 ADB Loan No. 2407-PRC

Sampling Sample ID TSP PM10 NOx Period 9-1 2011-5-12 0.306 0.079 0.028 9-2 2011-5-13 0.179 0.088 0.028 9-3 2011-5-14 0.210 0.136 0.025 3-Day Average 0.232 0.101 0.027

2. Noise Monitoring

52. Noise levels around the construction site were monitored in March and May 2011. The monitoring locations are shown in Figure 3 of Appendix 1. The sample collection period lasted for two days, and the equivalent continuous A-weighted sound pressure level (Leq) was collected during daytime from 6:00 to 22:00 and at night from 22:00 to 6:00 of each day.

53. The applicable standard used for noise monitoring and compliance evaluation is the Standard of Noise at Boundary of Industrial Enterprises, GB 12348-2008. The area where #1 to #4 monitoring locations were located is the 1st category sound environmental functional area, where noise upper limits for daytime and night are 55 dB (A) and 45 dB (A), respectively.

54. The noise monitoring results, summarized in Table 6, showed that 34 out of 36 recorded daytime noise levels exceeded the standard values of 55 dB(A) and the noise levels are higher than the values for the last semi-annual environmental report. Three of 36 recorded values at night exceeded the standard of 45 dB (A). However, there was no construction activity at night during the noise monitoring period. This indicates that the subproject area had high background noise levels due to traffic.

Table 6: Results of Noise Monitoring for Pingchuan District Road Improvements Leq[dB(A)] Sample Daytime Night Station March 2 March 3 May 12 May 13 March 2 March 3 May 12 May 13 #1 56.4 57.5 56.4 56.3 44.4 44.6 43.5 43.0 #2 56.5 56.4 57.5 57.6 45.3 43.6 43.7 44.8 #3 57.6 58.7 57.6 56.4 45.5 44.5 42.5 43.0 #4 55.3 57.4 55.4 55.3 46.4 43.4 43.4 42.7 #5 54.2 58.3 56.7 56.2 44.3 42.5 41.7 41.0 #6 55.3 55.4 57.7 57.4 43.5 42.7 42.6 41.6 #7 56.1 54.5 58.5 56.6 42.2 43.5 43.4 42.5 #8 56.2 55.6 56.4 55.5 42.4 42.3 44.3 43.4 #9 55.2 56.3 57.5 56.7 43.6 44.3 43.2 44.3

15 ADB Loan No. 2407-PRC

3. Wastewater and Solid Waste

55. No monitoring data concerning wastewater discharged into the municipal sewers was provided during the reporting period. Construction waste and domestic waste were produced during the construction period and they were placed at the designated site and disposed of properly.

E. Mitigation Measures Implemented and Compliance

1. Dust Suppression

56. The Contractor was responsible to implement dust control measures, including implementing the dust suppression program, and spraying water to suppress dust. In dry and windy conditions, more frequent water spraying was performed. Construction materials without packaging were placed in interim warehouses or covered to avoid fugitive dust emissions.

2. Noise Control

57. The construction time was properly planed, and night work was forbidden. Construction equipment with low noise was selected and used during the construction period. Construction equipment should be appropriately located to minimize noise levels. Mitigation measurements should be enhanced to control noise levels both during daytime and at night since some noise measurement data exceeded the National Standard.

3. Wastewater Control and Solid Waste Management

58. Wastewater generated by construction activities was collected and discharged into municipal sewers to avoid secondary pollution. The soil from the earth work was covered and backfilled regularly. Construction waste during bridge construction was transported out of the area shortly.

16 ADB Loan No. 2407-PRC

4. Violation of Safety or Environmental Standards

59. Other than the high levels of TSP, PM10 and noise levels identified above, no other violations of safety or environmental standards was reported during the reporting period.

F. Issues and Recommendations

60. Some noise levels measured are higher than the national standards. Upon analysis, it was determined that the high noise levels were primarily caused by the road traffic. However, mitigation measures need to be strictly implemented. Construction activities must not occur at night and the locations of noisy equipment should be kept as close as possible to the construction site. The PIA and contractor should review the environmental issues carefully and make necessary improvement to the mitigation plan as necessary. It’s recommended to reconsider the location of the measurement station to avoid high the background noise level area if possible.

17 ADB Loan No. 2407-PRC

V. Baiyin District Heating Services Subproject

A. Scope of the Subproject

61. The scope of this subproject includes expanding the district heating service area in Baiyin District by 3.2 million m2 through (i) building a new heating source plant with 4x58 megawatts (MW) capacity, (ii) laying down 12.6 km of heat transmission pipelines, and (iii) installing 29 heat exchange stations for connection with the community heat distribution systems.

B. Subproject Progress

62. The construction of this component is essentially completed. Four boilers and associated facilities have been installed; 14 heat exchange stations have been installed; additional 6 heat exchange stations is planned to be installed this year; 11.5 km of heat transmission pipelines have been laid down. The new heating system started operation in 2009, and the district heating service area has expanded by 1.5 million m2. This component will be completed by end 2011 as scheduled at appraisal.

63. An online continuous emission monitor (CEM) system is required per the approved environmental impact assessment report and the EMP. However, such a system has yet to be installed. To meet this requirement, Baiyin PMO and MDHC requested to add a new package into the procurement plan for procuring and installing a CEM system in the heating source plant. This system will monitor the emission of flue dust, SO2 and NOx, and will be connected to the monitoring system of Baiyin Environmental Protection Bureau. Cost of this package is estimated at CNY1.28 million.

C. Environmental Management Office

64. An EMO has been established by the IA to monitor the implementation of the EMP.

Minyue District Heating Company (MDHC) has appointed Mr. Zeng Xianlong to be responsible for the environmental management of this subproject.

D. Environmental Monitoring

1. Air Quality Monitoring

65. Three air quality monitoring stations downwind of the heat source plant were set up. TSP was monitored every month from January through June 2011. The monitoring data was collected two times each month, and each monitoring period lasted for two days.

66. The results of air quality monitoring, shown in Table 7, indicate that the minimum daily value for TSP was 0.177 mg/m3, and the maximum daily value of 0.455 mg/m3. 29 values of 72 recorded values (40.3%) for TSP were higher than the national standard value

18 ADB Loan No. 2407-PRC

of 0.30 mg/m3. TSP values of May and June were lower since the heating season ended and all boilers stopped working.

Table 7: Air Quality Results Monitoring for Baiyin District Heating Services January 2011 unit: mg/m3 Sample ID Sampling Period TSP 1-1 2011-1-8 0.321 1-2 2011-1-9 0.345 1-3 2011-1-16 0.413 1-4 2011-1-17 0.370 2-1 2011-1-8 0.389 2-2 2011-1-9 0.290 2-3 2011-1-16 0.300 2-4 2011-1-17 0.351 3-1 2011-1-8 0.406 3-2 2011-1-9 0.277 3-3 2011-1-16 0.355 3-4 2011-1-17 0.387

February 2011 unit: mg/m3 Sample ID Sampling Period TSP 1-1 2011-2-22 0.311 1-2 2011-2-23 0.245 1-3 2011-2-24 0.332 1-4 2011-2-25 0.364 2-1 2011-2-22 0.444 2-2 2011-2-23 0.321 2-3 2011-2-24 0.366 2-4 2011-2-25 0.344 3-1 2011-2-22 0.276 3-2 2011-2-23 0.277 3-3 2011-2-24 0.297 3-4 2011-2-25 0.340

March 2011 unit: mg/m3 Sample ID Sampling Period TSP 1-1 2011-3-5 0.278 1-2 2011-3-6 0.299

19 ADB Loan No. 2407-PRC

Sample ID Sampling Period TSP 1-3 2011-3-17 0.234 1-4 2011-3-18 0.308 2-1 2011-3-5 0.365 2-2 2011-3-6 0.332 2-3 2011-3-17 0.344 2-4 2011-3-18 0.289 3-1 2011-3-5 0.213 3-2 2011-3-6 0.267 3-3 2011-3-17 0.244 3-4 2011-3-18 0.287

April 2011 unit: mg/m3 Sample ID Sampling Period TSP 1-1 2011-4-4 0.300 1-2 2011-4-5 0.277 1-3 2011-4-21 0.357 1-4 2011-4-22 0.411 2-1 2011-4-4 0.345 2-2 2011-4-5 0.236 2-3 2011-4-21 0.289 2-4 2011-4-22 0.455 3-1 2011-4-4 0.245 3-2 2011-4-5 0.289 3-3 2011-4-21 0.312 3-4 2011-4-22 0.425

May 2011 unit: mg/m3 Sample ID Sampling Period TSP 1-1 2011-5-11 0.199 1-2 2011-5-12 0.212 1-3 2011-5-25 0.206 1-4 2011-5-26 0.311 2-1 2011-5-11 0.243 2-2 2011-5-12 0.220 2-3 2011-5-25 0.310 2-4 2011-5-26 0.321

20 ADB Loan No. 2407-PRC

3-1 2011-5-11 0.243 3-2 2011-5-12 0.219 3-3 2011-5-25 0.231 3-4 2011-5-26 0.226

June 2011 unit: mg/m3 Sample ID Sampling Period TSP 1-1 2011-6-4 0.196 1-2 2011-6-5 0.177 1-3 2011-6-19 0.205 1-4 2011-6-20 0.199 2-1 2011-6-4 0.214 2-2 2011-6-5 0.227 2-3 2011-6-19 0.230 2-4 2011-6-20 0.198 3-1 2011-6-4 0.178 3-2 2011-6-5 0.244 3-3 2011-6-19 0.200 3-4 2011-6-20 0.241

2. Noise Monitoring

67. Noise was monitored in the areas affected by the subproject around the site boundary during the construction period. The monitoring locations are shown in Figure 4 of Appendix 1. The monitoring lasted for two days, and the equivalent continuous A-weighted sound pressure level (Leq) was measured during daytime from 6:00 to 22:00 and at night from 22:00 to 6:00 of each day.

68. The applicable standard used for noise monitoring and compliance evaluation is the Standard of Noise at Boundary of Industrial Enterprises, GB 12348-2008.

69. The noise monitoring results, summarized in Table 8, showed that the recorded results for noise were both in compliance with the national standards (70dB during daytime and 55 dB during night) during day time and night. However, the noise monitoring results were higher than the results collected from last semi-annual environmental report.

21 ADB Loan No. 2407-PRC

Table 8: Noise Monitoring Results for Baiyin District Heating Services Quarter 1 Leq[dB(A)] Daytime Night Number January January February February February February January 8 January 9 8 9 23 24 23 24 1# 59.1 55.4 60.3 58.4 54.7 52.3 49.4 51.5 2# 56.3 57.3 58.4 57.7 53.6 51.3 52.3 51.8 3# 56.6 56.7 57.6 56.2 52.3 51.7 52.7 52.4 4# 54.5 55.8 56.7 57.3 52.2 52.4 53.4 53.2

Quarter 2 Daytime Night Number April 4 April 5 May 11 May 12 April 4 April 5 May 11 May 12 1# 61.5 57.2 55.1 58.5 48.5 46.8 44.0 45.8 2# 54.7 56.6 54.4 57.3 46.8 46.3 50.6 48.6 3# 57.5 58.3 56.0 55.5 45.5 44.5 46.3 46.5 4# 54.5 53.4 56.0 56.7 45.6 45.8 45.6 47.3

3. Wastewater Monitoring and Solid Waste Management

70. No monitoring data concerning wastewater discharged into the municipal sewers was provided during the reporting period. Construction wastes and domestic wastes were placed at the designated site and disposed of properly.

4. Demolishing Small Boilers

71. No additional small boilers were closed during this reporting period. So far 31 boiler houses with a total 46 small boilers have been decommissioned.

E. Mitigation Measures Implemented and Compliance

1. Dust Suppression

72. The coal pile at the heat source plant is supposed to be cover to avoid fugitive dust emissions. However, it was not covered during the site visits. The dust collector in the heat source plant was put into service for reducing the dust emission.

2. Noise Control

73. Since the construction of the heat source plant has been completed. Noise mitigation measures have been taken for the fans and pumps in the heat source plant during the normal operation of the plant.

22 ADB Loan No. 2407-PRC

3. Wastewater Control and Solid Waste Management

74. Wastewater was discharged into municipal sewers to avoid secondary pollution. Wastewater of the heat source plant was treated and then discharged. The slag and ash produced from the boiler were sold to a construction company that use it as a raw building material.

4. Compliance of Safety or Environmental Standards

75. Other than the high TSP levels identified above, no other violations of safety or environmental standards were reported during the reporting period.

F. Issues and Recommendations

76. TSP, SO2, NOx, and PM10 emissions are required to be monitored at the heat source plant. Stack emission testing and a CEM system should be installed before the heating season start in late 2011.

77. The environmental management of the coal yard needs to be further enhanced. The coal should be covered to prevent fugitive dust emissions.

23 ADB Loan No. 2407-PRC

VI. CONCLUSIONS

78. The EMPs for the four subprojects were generally implemented during the construction period. In accordance with the national and local environmental codes and regulations, and the requirements of the PIAs, contractors carried out environmental protection measures. The adverse environmental impacts arising from the construction period were minimized by implementing relevant mitigation measures. In general, the subprojects were constructed in accordance with the national and local environmental protection procedures, and the requirements of the EIAs.

79. However, the monitoring results indicated that TSP and noise emission levels in some monitoring locations exceeded the national standards for some subprojects. This is partly due to the high level of background TSP levels in Baiyin area. However, it is necessary to take further environmental protection and mitigation measures to reduce fugitive dust emissions from the construction sites.

80. The CEM system should be procured, installed and calibrated before the heating season starts. Environmental acceptance by the Baiyin EPA should be conducted for the heat source plant in the coming heating season. SO2, NOx and PM10 monitoring data should be collected and analyzed during both heating season and non-heating season.

Desulfurization and dust removal measures must be conducted to reduce SO2 and flue dust emission.

24 ADB Loan No. 2407-PRC

APPENDIX 1: Locations of Monitoring Stations

Figure 1: Monitoring Locations for Southern Baiyin Infrastructure Subproject

National Highway 109

# △4 Jingba Tengjia Zhuangzi N Bai-Lan Road Village Expressway △3#

Nanhuan road

# # △1 △2 Zhaojiataizi Village

ᇞ Monitoring Locations

Figure 2: Monitoring Locations for Baiyin District Road Improvements Subproject

Jinsan Road ▲1 Dijiatai Village Train Station

Beijing Road

▲2 Dijiatai Village ▲3 Dijiatai Village

Wei’er Road

National Highway 109

25 ADB Loan No. 2407-PRC

Figure 3: Monitoring Locations for Pingchuan District Road Improvements Subproject

▲1 Resident Area Pinchuanbei Road

▲2 Resident Area

▲3 Hospital

Guangchang road

▲4 Resident Area

No. 1 Road ▲6 School

▲5 Resident Kaifa Area Road

Gonghe Road

▲7 Resident Area

Gonghe Road

▲8 Resident Area ▲9 Resident Area

▲■8 ▲■9 ▲Monitoring Locations Resident Area Resident Area

No.2 Road

26 ADB Loan No. 2407-PRC

Figure 4: Monitoring Locations for Baiyin District Heating Services Subproject

■3 north resident area

■

Changan Road 1northeast resident area

▲1

Tianjin Electricity Road Coal ▲2 Yard Office and Pump ▲4 Boiler House R oom

Road ■ area 2 east resident Precipitator Room

Draft Room N 间 ▲3

Slag Yard

▲Noise monitoring locations at site boundary ■ Air monitoring spots

27 ADB Loan No. 2407-PRC

28 ADB Loan No. 2407-PRC