Gansu Jiuquan Integrated Urban Environment Improvement Project

Initial Environmental Examination

January 2013

People’s Republic of China: Gansu Jiuquan Integrated Urban Environment Improvement Project

Prepared by the Jiuquan Municipal Government for the Asian Development Bank.

CURRENCY EQUIVALENT (as of 17 December 2012) Currency unit – yuan (CNY) CNY1.00 = $0.1601 $1.00 = CNY6.2460

ABBREVIATIONS

A2/O – Anaerobic/anoxic/oxic ADB – Asian Development Bank As – Arsenic BAF – Biological aerated filter BOD – Biochemical oxygen demand

BOD5 – 5-day biochemical oxygen demand CNY – Chinese Yuan C&D – Construction and demolition

CaCO3 – Calcium carbonate Cd – Cadmium C&D – Construction and demolition CO – Carbon monoxide

CO2 – Carbon dioxide COD – Chemical oxygen demand Cr – Chromium Cr6+ – Hexavalent chromium Cu – Copper DO – Dissolved oxygen DRC – Development and Reform Commission EA – Executing Agency EIA – Environmental Impact Assessment EIR – Environmental Impact Report EIRF – Environmental Impact Registration Form EIT – Environmental Impact Table EMP – Environmental Management Plan EPB – Environmental Protection Bureau Fe – Iron FRP – Fiberglass reinforced plastic FSR – Feasibility Study Report FYP – Five-Year Plan GDP – Gross domestic product GHG – Greenhouse gas GPG – Gansu Provincial Government i

GRM – Grievance Redress Mechanism HC – Hydrocarbon HDPE – High density poly-ethylene Hg – Mercury

H2S – Hydrogen sulfide IA – Implementing Agency IEE – Initial Environmental Examination IFC – International Finance Corporation IPCC – International Panel on Climate Change JEDIC – Jiuquan Economic Development and Investment Company JEPB – Jiuquan Environmental Protection Bureau JMG – Jiuquan Municipal Government JPMO – Jiuquan Project Management Office LAS – Linear alkylbenzene sulfonate LDI – Local Design Institute MEP – Ministry of Environmental Protection Mn – Manganese MOC – Ministry of Construction MSW – Municipal solid waste N – Nitrogen ND – No data NDRC – National Development and Reform Commission

NH3 – Ammonia

NH3-N – Ammonia nitrogen

NO2 – Nitrogen dioxide

NOX – Nitrogen oxides NTU – Nephelometric turbidity unit

O2 – Oxygen O&M – Operation and maintenance P – Phosphorus PAH – Poly-aromatic hydrocarbon PAM – Poly-acryl amide Pb – Lead PLG – Project Leading Group PM – Particulate matter (in the air)

PM10 – Particulate matter (in the air) with diameter ≤ 10 μ PME – Powered mechanical equipment PMO – Project Management Office PPTA – Project Preparation Technical Assistance PRC – People‘s Republic of China REA – Rapid Environmental Assessment

RSP – Respirable suspended particulates SBR – Sequencing batch reactor Se – Selenium

SiO2 – Silicon dioxide or silica

SO2 – Sulfur dioxide

SO4 – Sulfate SOP – Standard operating procedure SPS – Safeguard Policy Statement SS – Suspended solids TN – Total nitrogen TP – Total phosphorus TPH – Total petroleum hydrocarbon TSP – Total suspended particulates UNESCO – United Nations Educational, Scientific and Cultural Organization USD – United States Dollar UV – Ultra-violet VOC – Volatile organic compound WRP – Water reclamation plant WW – Wastewater WWTP – Wastewater treatment plant WTP – Water treatment plant Zn – Zinc

WEIGHTS AND MEASURES

O C – degree Centigrade g or gm – gram GW – gigawatt h – hour ha – hectare km – kilometer km2 – square kilometer KV – kilovolt KW – kilowatt KWh – kilo-watt hour l – liter

LAeq – Equivalent continuous A-weighted sound pressure level m – meter mi – mile mph – mile per hour m/s – meter per second

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m3 – cubic meter m3/d – cubic meter per day m3/s – cubic meter per second mg – milligram mg/l – milligram per liter mg/m3 – milligram per cubic meter mm – millimeter MPa – Mega-pascal MW – Mega-watt pcu/h – passenger car unit per hour t – metric ton t/d – metric ton per day t/a – metric ton per annum μ – micron

NOTES In the report, ―$‖ refers to US dollars.

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 this website.

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

Table of Contents I. EXECUTIVE SUMMARY ...... 1 A. Background...... 1 B. Project Design ...... 1 C. Project Benefits ...... 2 D. Project Impacts and Mitigation Measures ...... 3 E. Information Disclosure, Consultation and Participation ...... 3 F. Grievance Redress Mechanism ...... 4 G. Key EMP Implementation Responsibilities ...... 4 H. Risks and Key Assurances ...... 4 I. Overall Conclusion ...... 5 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 6 A. Project Rationale ...... 6 B. Legal and Administrative Framework ...... 13 C. Laws, Regulations, Guidelines and Standards ...... 14 D. Assessment Areas, Sensitive Receptors ...... 17 E. Assessment Period ...... 21 F. Evaluation Standards and Justification for the Use of PRC Standards ...... 21 III. DESCRIPTION OF THE PROJECT ...... 25 A. General ...... 25 B. Roads, Bridges and Associated Utilities ...... 26 C. Wastewater Collection and Treatment ...... 35 D. Windbreak Tree Plantations...... 44 E. Capacity Development and Institutional Strengthening ...... 48 F. Climate Change Adaptation Considerations ...... 49 IV. DESCRIPTION OF THE ENVIRONMENT ...... 50 A. General ...... 50 B. Physical Setting ...... 50 C. Biological Resources, Ecology and Biodiversity...... 58 D. Socio-economic Conditions ...... 60 E. Physical Cultural Resources ...... 65 F. Greenhouse Gas Emissions ...... 65 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 67 A. Positive Impacts and Environmental Benefits ...... 67 B. Measures during Detailed Design and Pre-Construction Phase ...... 69 C. Impacts and Mitigation Measures during the Construction Stage ...... 70 1. Impact on Physical Resources ...... 71 2. Impact on Soil, Biological Resources, Ecology and Biodiversity ...... 75 3. Impact on Socio-economic Resources ...... 75 v

D. Impacts and Mitigation Measures during the Operational Stage ...... 78 1. Impacts related to operation of Roads and Bridges ...... 79 2. Impacts related to operation of Wastewater Treatment Plant ...... 82 3. Windbreak Tree Plantation ...... 87 E. Cumulative Impacts ...... 87 F. Indirect and Induced Impacts ...... 88 G. Associated Facilities ...... 90 VI. ANALYSIS OF ALTERNATIVES ...... 91 A. Introduction ...... 91 B. No Project Alternative ...... 91 C. Alternatives Considered ...... 92 1. Roads and Bridges ...... 92 2. Wastewater Collection and Treatment ...... 95 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 105 A. Legislative Framework for Participation and Information Disclosure ...... 105 B. Information Disclosure ...... 105 C. Consultation and Participation during Project Preparation ...... 106 D. Future Plans for Public Participation ...... 108 VIII. GRIEVANCE REDRESS MECHANISM ...... 110 IX. ENVIRONMENTAL MANAGEMENT PLAN ...... 111 A. Objectives ...... 111 B. Organizational Structure for Environmental Management ...... 111 C. Inspection, Monitoring and Reporting ...... 112 X. CONCLUSIONS AND RECOMMENDATIONS ...... 114 A. Expected Project Benefits ...... 114 B. Adverse Impacts and Mitigation Measures ...... 115 C. Risks and Assurances ...... 116 D. Overall Conclusion ...... 118

ATTACHMENT A: Environmental Management Plan

APPENDICES: 1. Jiuquan Environmental Protection Bureau letter on the approval of the domestic Environmental Impact Report 2. Jiuquan Environmental Protection Bureau letter on effluent discharge standards for the Jiuquan No. 2 Wastewater Treatment Plant 3. Suzhou District Urban Environmental Sanitation letter on sludge disposal 4. Jiuquan Project Management Office letter on effluent re-use 5. Taolai River Basin Water Resource Management Bureau letter on windbreak tree irrigation water

6. Suzhou District Forestry Bureau letter on using sludge for windbreak tree plantation 7. Overview of main industries in the catchment area of the No. 2 WWTP 8. Water Resources Analysis for Jiuquan Urban District

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I. EXECUTIVE SUMMARY

A. Background

1. This Initial Environmental Examination (IEE) is an environmental safeguard report for the Gansu Jiuquan Integrated Urban Environment Improvement Project. Gansu is a poor and remote province located in the northwestern part of the People‘s Republic of China (PRC), and Jiuquan Municipality is located in the western part of the province approximately 730 km to the northwest of Lanzhou, the provincial capital.

2. The proposed project aims to enhance the living conditions of urban residents in the Jiuquan Municipality through improvements in urban environment and transport services. At present, Jiuquan‘s urban area is over-crowded with no room for expansion, with narrow streets and congested traffic as well as inadequate road links to the industrial and commercial zones where there are employment and economic growth opportunities. The existing wastewater infrastructure is inadequate, resulting in untreated wastewater directly discharging to the Beida River, overflowing from the wastewater treatment plant (WWTP) and discharge of untreated wastewater directly into the desert or into storage pits for seepage and evaporation. Bordering the Gobi Desert, Jiuquan‘s urban area also suffers damages from strong wind and sand storms from the desert.

3. The project will support urban roads, bridges and associated public utility infrastructure; wastewater collection and treatment; windbreak tree plantations; and institutional strengthening and capacity development of related urban environment and transport services. It will also facilitate the integration of Jiuquan city (urban zone) and its neighboring Jiayuguan city 20 km to the west. Such integration aims to promote urban and economic development in these two cities by taking advantage of shared mineral, wind and cultural (tourism) resources.

B. Project Design

4. Interventions from this project will contribute to improving the urban road network in Jiuquan, increasing the city‘s wastewater collection and treatment capacity thereby protecting the water quality of the Beida River, and providing windbreak tree plantations to reduce potential damages from wind and sand storm from the desert. These are in accordance with Jiuquan‘s 12th Five-Year Plan (FYP) and its Urban Master Plan (2011-2030). The four outputs are:

5. Roads, Bridges and Public Utilities. This output includes the construction of the North

Riverside Road (5.76 km) and the South Riverside Road (5.43 km) that run along the north and south banks of the Beida River respectively; the extension of Panxuan Road (4.69 km) including the new Xiyi Bridge; the reconstruction of the existing Jiuyin Bridge (200 m); and the installation of public utilities pipelines and conduits.

6. Wastewater Collection and Treatment. This output includes the construction of 37 km of wastewater collection pipelines and the new Jiuquan No. 2 WWTP with a 60,000 m3/d treatment capacity.

7. Windbreak Tree Plantations. This output includes the planting of 60.5 ha of trees and vegetation along the North Riverside Road and the South Riverside Road for windbreak and sand fixation purposes.

8. Strengthened Capacity within the Jiaquan Project Management Office (JPMO) and the Implementing Agency (IA). This output will provide support through an international consulting company recruited to provide technical advice to JPMO and IA in engineering design review, procurement, and project management and supervision. Relevant JPMO and IA staff will receive training at the start of the project, including training on financial management and reporting, disbursement and procurement procedures, safeguards requirements, and reporting. The component will also include specific capacity building packages aiming at (i) improving transport management and traffic safety in the city; (ii) helping the JMG reviewing current and planned sewage sludge management, and developing a bankable sludge management system; and (iii) strenthening the city‘s water conservation strategy and plan.

C. Project Benefits

9. The project roads and bridges will fulfill the intra-zonal and inter-zonal trunk road functions by linking the old urban zone with and provide access and services to the new urban residential, commercial and industrial areas; and in the long term facilitate integration between Jiuquan and Jiayuguan. Panxuan Road will function as a major link among the West Industrial Zone, the Jiu-Jia New Urban Zone and the Old Urban Zone. It will also carry a large share of traffic between Jiuquan and Jiayuguan, alleviating traffic on the existing National Highway G312. Improved environmental and transport infrastructure along the Beida River will enhance new urban area development, provide space and recreational facilities for the citizens, and alleviate urbanization pressure. Along the roads there will be green open space and windbreak tree plantations, and under the roads there will be utility services pipelines to meet the development needs of newly developed areas. The strengthening of Jiuquan‘s municipal wastewater collection and treatment capacity will provide protection and improvement to Beida River's water environment as well as ground water resources, which are keys to the sustainability of Jiuquan‘s socio-economic development.

D. Project Impacts and Mitigation Measures

10. The project was classified as category B for environment. Construction and operation of the project components do have potential impacts to the environment. Approximately 59.83 ha of land will be permanently lost to make way for the above facilities. Dust and noise generated by construction activities will be a nuisance to nearby residents. Discharge of wastewater from construction sites could potentially pollute nearby water bodies. Traffic travelling on the project roads will generate air and noise pollution potentially affecting nearby sensitive receptors. Operation of the WWTP could generate odor and noise impacts. According to predictions in the domestic Environmental Impact Report (EIR), these impacts should be acceptable with the provision of mitigation measures and sound environmental management during the construction and operational stages of the project.

11. To facilitate sound environmental management, this report provides an Environmental Management Plan (EMP) with 4 major components: mitigation, monitoring, public consultation and training. The EMP provides a plan for training and capacity building of the JPMO and the IA so that they will be able to perform environmental management, to implement all the mitigation measures and to conduct environmental monitoring. Mitigation measures listed in the EMP covers the design, construction and operational stages of the project, because some measures that will become permanent features of the facilities will need to be designed into the facilities. It is also important that the mitigation measures are included in tender documents so that they could be implemented during the construction and operational stages. Environmental monitoring is important to measuring the impact during construction and operation, as well as quantifying the benefits of this project during operation.

E. Information Disclosure, Consultation and Participation

12. Information on the road component and the wastewater treatment plant component was disclosed to the public in the Jiuquan Daily Newspaper on February 24 and May 22, 2012 respectively. Two rounds of consultation and participation were conducted. The first round was by questionnaire surveys of stakeholders and affected people during the information disclosure periods at the beginning of the domestic environmental impact assessment process. Survey results identified the main public concerns to be air quality, noise, water quality, ecology and solid waste impacts during construction and operation of the project. These results guided the focus of impact assessment. The second round was by public forum on July 18, 2012 after the draft domestic Environmental Impact Report (EIR) was completed. Over 100 stakeholders were invited and 96 attended. Main queries were related to the operation of the WWTP such as effluent quality and sludge treatment and disposal. Explanations were given to all queries by the Jiuquan Project Management Office (JPMO) and the environmental design institute.

F. Grievance Redress Mechanism

13. People that are affected by the impacts of this project will have a channel to register their grievance. This report and the EMP describe a grievance redress mechanism (GRM) to document and resolve complaints from affected people. The proposed GRM was explained to the attendees of the public forum. The GRM will be accessible to diverse members of the community, including more vulnerable groups such as women and youth. Multiple points of entry and modes of access, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. Opportunities for confidentiality and privacy for complainants will be honored where this is seen as important.

G. Key EMP Implementation Responsibilities

14. The Jiuquan Municipal Government (JMG), through the Jiuquan Project Management Office (JPMO), will be responsible for the overall implementation of and compliance with the EMP and monitoring plan, including inspection, monitoring, reporting, and initiating corrective actions or measures. The JPMO will assign qualified environment specialists to undertake environmental management activities including (i) managing the environmental activities carried out under the project; (ii) ensuring effective EMP implementation; (iii) recruiting and supervising the environmental management consultant (EMC) responsible for providing assistance and training on inspecting, monitoring, and evaluating implementation of mitigation measures; (iv) preparing periodic EMP implementation progress reports; and (v) coordinating with other municipal agencies and ADB on all relevant environmental matters. The JPMO also has the final responsibility for implementation of a GRM for handling disputes.

H. Risks and Key Assurances

15. The main project risks include the low institutional capacity in environmental management and failure of the JPMO, IA and O&M units to monitor environmental impacts and implement the EMP during construction and operational stages, and for the project linked facilities to be built on time. These risks will be mitigated by (i) providing training in environmental management under the project; (ii) appointing qualified project implementation consultants, (iii) following appropriate project implementation monitoring and mitigation arrangements, and (iv) ADB conducting project reviews.

16. Key assurances cover the compliance with PRC‘s national and local laws and regulations as well as ADB requirements in environmental safeguards during project implementation, re-use of treated wastewater as cooling water for power plants, treatment and disposal of wastewater sludge, and the use of river water for irrigating windbreak tree plantations.

I. Overall Conclusion

17. Impact assessment results show no unprecedented and irreversible impact and that potential impacts will be mitigated to acceptable levels. This confirmed the recommendation of Rapid Environmental Assessment (REA) that the environmental categorization of this project be assigned Category B.

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Project Rationale

18. Background. The proposed project aims to enhance the living conditions of urban residents in the Jiuquan Municipality in Gansu Province through improvements in urban environment and transport services. The project will support urban roads, bridges and associated public utility infrastructure; wastewater collection and treatment; windbreak tree plantations; and institutional strengthening and capacity development of related urban environment and transport services.

19. Gansu Province is a poor and remote province in the northwest of the PRC. In 2011, its average annual urban per capita disposable income and rural per capita net income, CNY14,989 and CNY3,909 respectively, were the lowest among the provinces, compared to the national averages of CNY21,810 and CNY6,977 respectively.1

20. The project is located in Jiuquan, between the southern limits of Gobi Desert and Qilian Mountains, in Gansu Province, approximately 730 km northwest of the provincial capital of Lanzhou. In 2011, the population of the municipality was 1.1007 million while that of Suzhou District (Jiuquan‘s urban area) was 406,400.2 Historically, Jiuquan was an oasis on the ancient Silk Road along the Hexi (―west of Yellow River‖) Corridor, and, subsequently, has expanded based on the exploitation of local raw materials – oil, iron ore, asbestos, lead, zinc, and gold.

21. Provincial and Local Master Plans. The Jiu-Jia Integration Urban Master Plan Outline (2011-2030)3 calls for the integration of Jiuquan city (urban zone) and its neighboring Jiayuguan city 20 km to the west. Such integration aims to promote urban and economic development in these two cities by taking advantage of shared mineral, wind and cultural (tourism) resources. For Jiuquan, the Plan projects increases in population (from the present 1.1007 million) to 1.45 million and in urbanization rate (from the present 58%) to 76.5% in 2030. The Plan recognizes a number of constraints in Jiuquan. One constraint is road infrastructure. National Highway G312 is the main connection between these two cities at present, and it is already congested due to the already close interaction between them. Another constraint is Jiuquan‘s poor drainage system with inadequate storm water drains and overloaded wastewater collection and treatment, resulting in untreated wastewater bypassing treatment during storm events causing secondary

1 Data are from the National Bureau of Statistics of China unless otherwise stated. 2 Jiuquan is a prefecture-level city administering Suzhou District (Jiuquan urban area), Yumen City, Dunhuang City, Jinta County, Guazhou County, Subei Mongol Autonomous County and Akesai Kazahk Autonomous County. The Gansu Provincial Government plans for the economic integration of Jiuquan and Jiayuguan, its neighboring city, under the Jiuquan – Jiayuguan Region Economic Integration Development Program. 3 Jiu-Jia Integration Urban Master Plan Outline (2011-2030). November 2011. Prepared by the Jiuquan Municipal Government, the Jiayuguan Municipal Government and Beijing Qinghua Urban Planning and Design Research Institute. 6

pollution. Interventions from this project tackle both traffic and wastewater problems in facilitating the integration of Jiuquan and Jiayuguan.

22. Jiuquan‘s 12th Five Year Plan (FYP) aims to strategically position Jiuquan by the end 2015 as (i) a new energy source and new energy equipment manufacturing base of national importance, (ii) a regional transport hub and logistics center in western PRC, (iii) a regional central and livable city in support of the Xilonghailan New Economic Belt development and (iv) a leader in the cultural tourism industry in the province. To achieve these, the FYP identifies the following 12 initiatives and corresponding actions (Table II.1). Interventions from this project are in concert with initiatives no. 6 and 7, which provide the foundation for other initiatives.

Table II.1: Initiatives and actions depicted in Jiuquan’s 12th Five-Year Plan No. Initiative Action 1 Implement new energy economic Optimize the layout of industries development strategy and Speed up the establishment of institutional systems for related promote transformation and industries upgrading of industries Speed up the development of industrial parks 2 Develop modern agriculture and Persist in developing modern agriculture characterized by water saving speed up the development of new and high efficiency rural villages Promote specialized layout Promote commercialization Promote standardized production Promote technological training Conscientiously increase the income of farmers Speed up the development of new rural villages 3 Tackle difficulties in resettlement Speed up overall development in poverty ridden villages and promote poverty reduction in Improve living conditions of resettled households resettlement Nurture distinguished and advantageous industries Strengthen community support 4 Develop modern service industries Optimize the space for developing service industries and promote optimization and Speed up the establishment of new energy service system upgrading of economic structure Improve modern agriculture service system Develop commerce and trade circulating service industries Develop and strengthen modern logistics industries Develop innovative financial service industries Upgrade the information service industries 5 Make full use of brand name Establish a cultural tourism development structure advantage to shape the cultural Promote the merge of cultural heritage resources and service tourism market industries and actively cultivate consumer hotspots Make full use of brand name advantage to promote speedy development of the tourism industry

No. Initiative Action 6 Construct strategic passageways Speed up road infrastructure construction to improve smooth traffic flow and develop passageway Speed up rail infrastructure construction economy Speed up airport infrastructure construction 7 Strengthen ecological and Strengthen ecologically safe construction environmental protection Fully promote a water conservation society Actively establish Jiuquan as a national model city in environmental protection Strictly manage integrated pollution prevention and control, and reductions in energy use and pollutant emissions 8 Coordinate urban-rural Establish a new pattern in integrated urban-rural development developments to construct a low Speed up basic infrastructure construction in cities and towns carbon livable city Improve city management mechanism Strengthen the city‘s business functions 9 Strengthen the foundation for Promote business development in science and technology scientific and technological human Insist on education taking priority resources Speed up the development of human resources Develop cultural and sports businesses 10 Improve the people‘s livelihood Actively expand employment and raise the level of social Improve the social security system security Speed up the development of health businesses 11 Intensify reform and openness to Promote various reforms comprehensively strengthen development vitality Diligently expand openness to the external Give a free hand to developing economies from privately owned enterprises 12 Strengthen society management Strengthen the development of public safety and promote democratic legal Strengthen the development of democratic legal system system and the spirit of civilized Strengthen the spirit of civilized development development Promote common prosperity to various ethnic groups

23. The central urban zone is the focus in the Jiuquan Urban Master Plan (2011-2030). Its built-up area will be expanded from the present 45 km2 to 96.8 km2 by 2030, and its population will be expanded from 284,300 in 2010 to 400,000 in 2015 and to 650,000 in 2030. Jiuquan‘s central urban zone, which is the service area of this project, will be expanded towards the north and west, ultimately integrating with Jiayuguan City 20 km to the west. The master plan, similar to the 12th FYP, focuses on developing industrial zones for strategically positioning Jiuquan as a major national energy equipment manufacturing base. It describes six zones of urban development around the old urban zone (existing urban area) thus relieving land constraint of the existing urban area (Figure II.1). The West Industrial Zone and the South Industrial Zone are proposed at the western and southern suburbs of the city respectively. These two industrial zones will mainly serve the manufacturing sector for wind energy, mining product processing, agricultural product 8

processing, power industry, construction industry etc. The North Urban Zone, located on the north bank of Beida River, will provide an eco-friendly scenic environment, for residential and recreational purposes. The Jiu-Jia New Urban Zone is situated at the south bank of the river, adjacent to Jiayuguan City, and will be developed as a commercial and financial center of the city. The High Speed Rail Zone, adjacent to the southeastern corner of the old urban area, will accommodate the new high speed rail and will bring about an opportunity for Jiuquan to develop a high-speed rail hub, with modern passenger transport interchange and logistics center. The urban development plan also envisages a significant increase in green open space and the establishment of windbreak plantations to screen the city from the worst effects of the frequent sand and dust storms emanating from the desert to the north and west. Roads to be built under this project will link up the North Urban Zone, the West Industrial Zone, the Old Urban Zone and the Jiu-Jia New Urban Zone and are therefore in line with the master plan.

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Figure II.1: Development zones of Jiuquan according to its Urban Master Plan

24. Transport Infrastructure Challenges. The old urban zone of Jiuquan is located at the northeastern jurisdiction of Jiu-Jia economic integration. At present, roads serving the old part of the urban area are generally narrow and restricted by existing buildings and past developments, and have become increasingly congested and ill-maintained. The widths of most of the major

carriageway range from 8 to 10 m with two-way traffic. The widths of side streets vary from 4.5 to 6.5 m. Traffic movements are generally smooth during off peak hours but with long delays during morning and afternoon peak hours. National Highway G312 is at present the main connection between Jiuquan and Jiayuguan, and is already congested. The present incomplete road network linking future development zones described in Jiuquan‘s Urban Master Plan is a constraint on urban development and future integration with Jiayuguan City. There is at present insufficient river crossing infrastructure to connect urban developments on both banks of the Beida River. An existing road bridge (the Jiuyin Bridge) across Beida River has restricted traffic movement because of inherent structural weakness and this project will provide a full reconstruction that is urgently needed. A new bridge included in the project, the Xiyi Bridge, will be an extension of Panxuan Road and will provide direct access between residential and industrial and commercial zones.

25. Public Utility Challenges. The road component in this project provides an opportunity to install public services pipelines and conduits for heating, natural gas, water supply, wastewater collection and telecommunication along the road alignments to serve existing and future urban development areas. Currently Jiuquan relies on scattered small boilers to provide heating to the urban area. There are 70 boiler rooms with 150 boilers, which burn coal and create air pollution and public health problems due to lack of sulfur removal capacity and low stack that is unfavorable for the dispersion of SO2 and NOx. Phase 1 of a co-generation plant is near completion for supplying heat and electricity to households but needs pipelines to extend its service area, which will be partially fulfilled by this project. The scattered boilers will be retrofitted to heat exchange stations or be phased out, thus eliminate these air pollution sources. The present drainage infrastructure is unsatisfactory, especially in the old urban area where storm water and wastewater drains are combined. This causes overloading of the system during heavy rain, resulting in localized flooding as well as overloading the WWTP causing direct overflow of storm water mixed with wastewater bypassing the treatment process. This problem will be solved by the wastewater component in this project, as it will take in overflows from the existing WWTP. Wastewater collection pipelines laid along road alignments in this project will serve the new development areas, eliminating the problems created by combined sewers.

26. Water Quality Challenges. The Beida River, which has been ecologically and environmentally degraded, flows from west to east and forms the northern boundary of urban Jiuquan‘s administrative, commercial and residential districts. Water quality in Beida River is Category II4 for the reach upstream of the urban area, Category III through the urban area, and

4 The PRC‘s Environmental Quality Standard for Surface Water (GB 3838-2002) defines five water quality categories for different environmental functions. Category 1 is the best, suitable for head waters and National Nature Reserves. Category II is suitable for drinking water sources in Class I protection areas, habitats for rare aquatic organisms, breeding grounds for fish and crustaceans, and feeding grounds for fish fries. Category III is suitable for drinking water sources in Class II protection areas, wintering grounds for fish and crustaceans, migration routes, water bodies for aquaculture and capture fishery, and swimming activities. Category IV is suitable for general industrial use and non-contact recreational activities. Category V is the worst which is only suitable for agricultural and scenic water uses. 10

Category IV downstream, resulting from effluent discharges. Jiuquan has one WWTP in operation. The Jiuquan WWTP has a design capacity of 40,000 m3/d and is located in the Suzhou District (the urban area of Jiuquan Municipality). It mainly serves the old urban zone. The plant is already operating at full capacity or sometimes over capacity. When over loading occurs, either due to sudden increases of wastewater inflow or during heavy rainfall when the combined sewer system serving the old urban zone is overloaded with storm water, overflows of untreated wastewater from the WWTP would occur, discharging directly into the Beida River. The Jiuquan WWTP can no longer meet the wastewater treatment needs of the urban area and it has no room to expand due to lack of available adjacent land. There are areas not served by the WWTP. These include the South and West Industrial Zones, the High Speed Rail Zone and the Jiu-Jia New Urban Zone, where the wastewater (industrial wastewater is pretreated by individual waste producers first, municipal wastewater not) is either discharged to the Gobi Desert or collected in pits (Figure II.2), where it either evaporates or infiltrates into the ground, contaminating the local environment and groundwater. As a water-scarce city undergoing continuous growth, Jiuquan must address the challenges of inadequacy and gradual contamination of its water resources. Wastewater infrastructure is urgently needed to serve those areas without wastewater collection and treatment and to alleviate the loading on the existing Jiuquan WWTP. Interventions from this project will provide wastewater collection and treatment for the South and West Industrial Zones, the High Speed Rail Zone, the Jiu-Jia New Urban Zone and overflows from the Old Urban Zone.

Figure II.2: A wastewater collection pit near Jiuquan’s existing railway station

27. Windbreak Tree Plantation for desertification control. Jiuquan has a dry climate, with low rainfall (annual average precipitation of 84 mm) and strong wind and sandstorms. According to the Jiuquan Environmental Protection Bureau (JEPB), the annual average of daily sand and dust

deposits from the atmosphere is 22.93 tons per square km per day (t/km2/d). In the case of a five-day sandstorm on 24-28 April 2011, 31.1 km2 of farmland were affected with direct economic loss of CNY15.65 million. According to the research data and results of Ma, Xu and Wang (2002) 5 and Xu, Wang, Zhang and Chen (2002) 6, Jiuquan is in a moderate level of desertification. Therefore, to achieve sustainable development of the regional ecological environment, the construction of ecological greening projects for sand fixation and increase of forest coverage are important measures to prevent sandstorms and to combat desertification. Jiuquan Municipality is part of the national “Three North” (i.e. Northwest PRC, North PRC, and North-east PRC) Shelterbelt Program, initiated in 1978 and to be completed in 2050. The program, also known as the Great Green Wall, involves a network of shelterbelts and tree plantations across the entire northern area of the PRC. Since then, Jiuquan Municipality has (i) established a significant ecological protection barrier, with total reforestation of 61,200 ha, including 33,000 ha of farmland shelterbelts, and 1,000 km of green passages along roads and water bodies. Forests now shelter more than 90% of the farmland in the municipality; the total area of the shelterbelts reaches 267,000 ha. The afforestation rate has increased from 0.42% in 1978 to 1.37% in 2010. Through the construction of windbreak belts, the municipality has basically formed a shelterbelt consisting of a large backbone sand-fixing forest belt at the main wind gaps at the fringes of the oases, and other forest belts along the roads and main and branch water channels and field ridges within the oases. In addition to the fixing of 33,000 ha of quicksand, 112,000 ha of farmland have been effectively protected. The municipality's agricultural production has maintained a high growth rate for 10 consecutive years. In recent years, the focus has shifted to the greening process in urban areas, in particular the living environment centered in cities and towns. At present the project area near the Beida River has low vegetation coverage, poor landscaping, high evaporation, and suffers from wind and sandstorms. Sand and dust transported by frequent strong winds from the desert cause atmospheric pollution, a high incidence of respiratory illness, and productivity losses. Construction of an ecological corridor with windbreak tree plantations between the water body of Beida River and the riverside area is in line with the national and provincial shelterbelt programs, and can effectively mitigate impacts from wind and wind-blown sand.

28. Benefits of the Project. The project includes constructing the new North and South Riverside Roads, the western extension of Panxuan Road, and two associated bridges. Apart from fulfilling the intra-zonal trunk road functions, these roads also have inter-zonal trunk road functions by linking the old urban zone with and provide access and services to the new urban residential, commercial and industrial areas, and in the long term facilitate integration between Jiuquan and Jiayuguan. Panxuan Road will function as a major link among the West Industrial Zone, the Jiu-Jia New Urban Zone and the Old Urban Zone. It will also carry a large share of traffic between Jiuquan and Jiayuguan, alleviating traffic on the existing National Highway G312,

5 Ma L. P., D. H. Xu and H. Wang. 2002. The evaluation of land sandy desertification degree in Hexi region. Journal of Gansu Agricultural University, 2002(1). 6 Xu, D. H., H. Wang, T. Zhang and X. S. Chen. 2002. Trend analysis and prediction of sandy desertification in Hexi corridor. Journal of Gansu Agricultural University, 2002(1). 12

currently aligned within the urban area. Eventually, National Highway G312 will be re-routed onto the city‘s ring road system avoiding passing through the urban area of Jiuquan. North and South Riverside Roads will also serve as scenic roads along the north and south banks of Beida River. Improved environmental and transport infrastructure along the river will enhance new urban area development, provide space and recreational facilities for the citizens, and alleviate urbanization pressure. Along the roads there will be green open space and windbreak tree plantations, and under the roads there will be utility services pipelines to meet the development needs of newly developed areas. The strengthening of its municipal wastewater collection and treatment capacity will provide protection and improvement to Beida River's water environment as well as ground water resources, which are keys to the sustainability of Jiuquan‘s socio-economic development.

B. Legal and Administrative Framework

29. The administrative framework for environmental impact assessment in the PRC consists of national, provincial and local (city) environmental protection authorities. The national authority is the Ministry of Environmental Protection (MEP), who promulgates laws, regulations and technical guidelines on environmental impact assessment and pollution prevention and control. On the provincial level are the provincial EPBs, acting as the gate-keeper for environmental impact assessment and pollution prevention and control in the province. They are often delegated the authority by MEP to approve EIRs for construction projects in the provinces, except those with national interest and those that cross provincial boundaries that would need MEP approval. The local or city-level EPBs enforce environmental laws and conduct environmental monitoring within city limits. Local EPBs could be delegated the authority to approve environmental impact assessments by the provincial EPDs. The Jiuquan EPB has been delegated the authority by the Gansu Provincial EPB to approve the environmental impact assessment for this project.

30. A Construction Project Environmental Impact Report (EIR) has been prepared by a local environmental design institute, the Environmental Quality Assessment Research Center of Lanzhou University, in accordance with the provisions of PRC‘s Environmental Impact Assessment Law of 2003 and the Directory for the Management of Different Categories of Construction Project Environmental Impact Assessment, (MEP Order No. 2), October 1, 20087. The release of the Environmental Impact Assessment Public Participation Interim Guideline in 2006 also requires that the public be involved in the EIA process. The Jiuquan Environmental Protection Bureau (JEPB) on September 11, 2012 (Document [2012] No. 241) approved the

7 The Directory for the Management of Different Categories of Construction Project Environmental Impact Assessment classifies environmental impact assessments for construction projects into 3 categories with different reporting requirements, based on the ‗significance‘ of potential environmental impact due to the project and the environmental sensitivity of the project site as described in this Directory. An Environmental Impact Report (EIR) is required for construction projects with potential significant environmental impacts. An Environmental Impact Table (EIT) is required for construction projects with less significant environmental impacts. An Environmental Impact Registration Form (EIRF) is required for construction projects with the least significant environmental impacts. 13

domestic EIR (Appendix 1). This report is based on information and findings provided in the EIR.

C. Laws, Regulations, Guidelines and Standards

31. PRC Requirements. The following requirements of the PRC govern the way in which environmental protection and environmental impact assessment for construction projects must be implemented. This suite of laws, regulations, guidelines and standards is shown below, indicating the comprehensive coverage on PRC‘s environmental safeguard. These requirements cover pollution prevention and control on air, noise, water and solid waste; as well as discharges from municipal WWTP and the re-use of treated effluent and sludge for various purposes. These requirements also provide technical guidelines on assessing atmospheric, noise, water and ecological impacts.

i. Environmental Protection Law, December 26, 1989; ii. Atmospheric Pollution Prevention and Control Law, September 1, 2000; iii. Noise Pollution Prevention and Control Law, March 1, 1997; iv. Water Pollution Prevention and Control Law, June 1, 2008; v. Solid Waste Environmental Pollution Prevention and Control Law, April 1, 2005; vi. Water Law, October 1, 2002; vii. Water and Soil Conservation Law, June 29, 1991; viii. Promotion of Clean Production Law, January 1 2003; ix. Environmental Impact Assessment Law, September 1, 2003; x. Energy Conservation Law, January 1, 1998; xi. Wild Animal Protection Law, August, 2004; xii. Construction Project Environmental Protection and Management Regulation, (State Department Order No. 253), November 29, 1998; xiii. Directory for the Management of Different Categories of Construction Project Environmental Impact Assessment, (MEP Order No. 2), October 1, 2008; xiv. Environmental Impact Assessment Public Participation Interim Guideline, (MEP Announcement No. [2006]28); xv. Circular on Strengthening the Management of Environmental Impact Assessment for Construction Projects Financed by International Financial Organizations, (MEP Announcement No. [1993]324); xvi. Technical Guidelines for Environmental Impact Assessment: General Program (HJ 2.1-2011); xvii. Guidelines for Environmental Impact Assessment: Atmospheric Environment (HJ 2.2-2008); xviii. Technical Guidelines for Noise Impact Assessment (HJ 2.4-2009); xix. Technical Guidelines for Environmental Impact Assessment: Surface Water Environment (HJ/T 2.3-93);

xx. Technical Guidelines for Environmental Impact Assessment: Ground Water Environment (HJ 610-2011); xxi. Technical Guideline for Environmental Impact Assessment: Ecological Impact (HJ 19-2011) [replace HJ/T 19-1997]; xxii. Technical Guideline for Construction Project Environmental Risk Assessment (HJ/T 169-2004); xxiii. Specifications for Road Construction Project Environmental Impact Assessment (JTG B03-2006); xxiv. Ambient Air Quality Standard (GB 3095-1996); xxv. Air Pollutant Integrated Emission Standard (GB 16297-1996). xxvi. Emission Standard for Odor Pollutants (GB 14554-93); xxvii. Environmental Quality Standard for Noise (GB 3096-2008); xxviii. Emission Standard of Environmental Noise for Boundary of Construction Site (GB 12523-2011); xxix. Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008); xxx. Technical Specifications to Determine the Suitable Areas for Environmental Noise of Urban Area, (GB/T 15190-94); xxxi. Environmental Quality Standards for Surface Water (GB 3838-2002); xxxii. Quality Standard for Ground Water (GB/T 14848-93); xxxiii. Integrated Wastewater Discharge Standard (GB 8978-1996); xxxiv. Discharge Standard for Municipal Wastewater (CJ 3082-1999); xxxv. Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB 18918-2002); and Amendment (MEP Announcement in 2006, No. 21)); xxxvi. The Reuse of Urban Recycling Water: Water Quality Standard for Scenic Environment Use (GB/T 18921-2002); xxxvii. The Reuse of Urban Recycling Water: Water Quality Standard for Urban Miscellaneous Water Consumption (GB/T 18920-2002); xxxviii. The Reuse of Urban Recycling Water: Water Quality Standard for Industrial Use (GB/T 19923-2005); xxxix. Environmental Quality Standard for Soils (GB 15618-1995); xl. Control Standard for Pollutants in Sludges for Agricultural Use (GB 4284-84); xli. The Disposal of Sludge from Municipal Wastewater Treatment Plant: the Quality of Sludge used in making Brick (CJ/T 289-2008); xlii. The Disposal of Sludge from Municipal Wastewater Treatment Plant: Sludge Quality for Land Improvement (CJ/T 291-2008); xliii. Disposal of Sludge from Municipal Wastewater Treatment Plant: Control Standards for Agricultural Use (CJ/T 309-2009); xliv. National Directory of Hazardous Wastes, (MEP and NDRC Order No. 1, August 1, 2008); xlv. Identification Standards for Hazardous Wastes: Identification for Toxic Substance Content (GB 5085-6-2007);

xlvi. Classification and Assessment Standards for Municipal Solid Waste (CJJ/T 102-2004); xlvii. Technical Guideline on Environmental Monitoring Quality Management (HJ 630-2011).

32. Provincial and Local Requirements. The following Gansu provincial and Jiuquan local requirements are relevant to this project. These requirements also form the basis and rationale for this project.

i. Gansu Province Environmental Protection Regulation, September 2003; ii. Gansu Province Water Functional District Plan, (Gansu Provincial Water Bureau, Gansu Provincial Environmental Protection Bureau, May 2007); iii. Gansu Province Water Resources Development 12th Five-Year Plan; iv. Jiuquan 12th Five-Year Plan Outline. v. Jiuquan Urban Master Plan (2011-2030), (April 2012); vi. Jiu-Jia Integration Urban Master Plan Outline (2011-2030), (November 2011).

33. ADB Environmental Safeguard Requirements. This project is classified as Category B for environment on the basis of ADB‘s Rapid Environmental Assessment (REA). ADB‘s Safeguard Policy Statement (SPS) of 2009 requires a number of considerations in this document. These include, amongst others: (i) project risks and respective mitigation measures and project assurances; (ii) project level Grievance Redress Mechanism (GRM); (iii) definition of the project area of influence; (iv) physical cultural resources damage prevention analysis; (v) climate change mitigation and adaptation; (vi) occupational and community health and safety requirements (including emergency preparedness and response); (vii) economic displacement that is not part of land acquisition; (viii) biodiversity conservation and natural resources management requirements; (ix) provision of extensive sufficient justification if local standards are used; (x) meaningful consultation and participation; and (xi) implementation schedule and (measurable) performance indicators in the EMP.

34. Relevant International Agreements. PRC is a signatory to a number of international agreements relevant to environment protection. Those relevant to the project, along with the date of signing by PRC, include:

i. Convention on Biological Diversity, 29 December 1993. To develop national strategies for the conservation and sustainable use of biological diversity; ii. Ramsar Convention on Wetlands of International Importance Especially as Waterfowl Habitat, 21 December 1975. To stem the progressive encroachment on and loss of wetlands now and in the future, recognizing the fundamental ecological functions of wetlands and their economic, cultural, scientific, and recreational value; iii. Kyoto Protocol to the United Nations Framework Convention on Climate Change, 23 February 2005. To further reduce greenhouse gas emissions by enhancing the national

programs of developed countries aimed at this goal and by establishing percentage reduction targets for the developed countries; iv. Montreal Protocol on Substances That Deplete the Ozone Layer, 1 January 1989. To protect the ozone layer by controlling emissions of substances that deplete it; v. United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, 26 December 1996. To combat desertification and mitigate the effects of drought through national action programs that incorporate long-term strategies supported by international cooperation and partnership arrangements; vi. United Nations Framework Convention on Climate Change, 21 March 1994. To achieve stabilization of greenhouse gas concentrations in the atmosphere at a low enough level to prevent dangerous anthropogenic interference with the climate system.

D. Assessment Areas, Sensitive Receptors

35. The assessment areas for air, noise, surface water and ecological impacts are defined by the technical guidelines for environmental impact assessment in the PRC, based on the environmental sensitivity of the project areas and vicinity as well as the nature of the project and its components. The domestic EIR followed these guidelines in defining the assessment areas. The assessment areas for various environmental components of the project areas are shown in Table II.2, with the ecological assessment area adjusted and the physical cultural resource assessment area added for this project.

36. Air and noise sensitive receptors within the assessment areas for the roads, bridges, wastewater collection pipelines and WWTP are presented in Table II.3. Ten sensitive receptors were identified for the road and bridge component (Figure II.3). There is no existing environmental sensitive receptor near the proposed South Riverside Road alignment. There is one village located approximately 500 m to the southwest of the WWTP site. The wastewater collection pipelines are trunk sewers with no connection close to households except for a section along an existing road near the existing train station where there are sensitive receptors along the road with 14 commercial establishments, government offices, school and clinic identified (see Table II.3). Pipelines are installed by sections in a linear fashion. When one section is installed, construction activities move on. Sensitive receptors along the pipeline route would therefore be exposed to short durations of impacts, most likely from a few weeks to a few months. Focus would be put on environmental mitigation and management measures on the construction site in the EMP to reduce impact to sensitive receptors.

Table II.2: Assessment areas

Assessment Area

Environmental Media Roads, Bridges and Windbreak Wastewater Component Components

Within 200m on both sides from the road Within 5 km from the center of the WWTP Air center line. (5 x 5) km2 along the dominant on all 4 sides. wind direction.

Within 200m on both sides from the road Within 100 m from the 4 boundaries of the Noise red line. WWTP

Roads: major rivers within 200 m on both From 500 m upstream of the WWTP sides from the road center line effluent outfall to downstream where the Bridges: section of Beida River from 500 m designated ambient water quality upstream of the proposed Xiyi Bridge to standards are met. Surface water 1,000 downstream of the Jiu Hang Road Beida River Bridge Windbreaks: Beida River (as source of irrigation water)

Ground water Not applicable Within 20 km2 of the WWTP site.

Ecology Construction ―footprint‖. Construction ―footprint‖.

Physical cultural resource Construction ―footprint‖. Construction ―footprint‖.

Occupational health & safety Construction ―footprint‖. Construction and WWTP ―footprint‖

Within 200m on both sides from the road Community health & safety Within 500m from the WWTP boundaries. red line.

Source: Domestic EIR

Table II.3: Air and noise sensitive receptors within the assessment areas Distance From WWTP Est. No. Location From Road or Pipeline Major Environmental Factors Popul. Red Line Work Site Boundary Panxuan Road Extension 1 Xifengsi Village 150 15 m 2 Guanbeigou Primary 100 120 m School 3 Guanbeigou Village #1 160 40 m Dust and noise during (north of Panxuan construction; road traffic noise Not Applicable Road) and vehicular emissions during 4 Guanbeigou Village #2 170 100 m operation. (south of Panxuan Road)

Distance From WWTP Est. No. Location From Road or Pipeline Major Environmental Factors Popul. Red Line Work Site Boundary North Riverside Road 5 Christian Church 4 100 m 6 Fa‘Chuang Temple ---- 130 m 7 Zhaojia Watermill ---- 100 m Dust and noise during 8 Hengyun Agricultural 10 100 m construction; road traffic noise Not Applicable Materials Production and vehicular emissions during Co. operation. 9 Jiuquan Dizhu Chinese 40 140 m Pharmaceutical Co. Jiuyin Bridge 10 Northern Suburban ---- 15 m S of Not Applicable Dust and noise during Park Jiuyin Bridge construction; road traffic noise and vehicular emissions during operation. Wastewater Treatment Plant 11 Quanhu Village 200 Not 500 m to the Odor and boiler emissions Applicable SW during WWTP operation. Wastewater Collection Pipeline 12 Post Office Railway Station Branch 10 m 13 Xidong Town Supermarket 20 m 14 Xidong Credit Union 10 m 15 Xidong Town Government Building 30 m 16 Planned Parenthood Service Station 30 m 17 Xidong Town Clinic 10 m 18 Suzhou District Xidong Middle School 40 m Not Dust and noise during pipeline 19 Suzhou District Honglin Irrigation Area 20 m Applicable construction. Water Management Bureau 20 Xiyu Lvjia Beer Company 20 m 21 Haoniu Dairy Food Co. 20 m 22 Jiuquan Yutian Seed Company 20 m 23 Daye Seed Industry 20 m 24 Dayu Water Saving Company 35 m 25 Dunhuang Seed Industry Corporation 30 m Source: Domestic EIR

Christian Fa’Chuang Zhaojia Hengyun Jiuquan Dizhu Church Temple Watermill Agricultural Pharmaceutical

North Riverside Road Jiuyin Bridge

Xiyi Bridge

Western South Riverside Road Suburban Park

Guanbeigou Guanbeigou Guanbeigou Xifengsi Panxuan Road Extension Village #1 Primary School Village #2 Village

Figure II.3: Locations of air and noise sensitive receptors for the road and bridge component (Source: Google Earth)

E. Assessment Period

37. The duration of impacts assessed in this IEE covers the construction and operational phases of the project.

38. For the roads, bridges, associated public utilities and windbreak tree plantations components, construction has been estimated to start in September 2013 and to end in June 2016. The assessment period for construction stage will cover these 34 months. The assessment period for operational stage will cover up to year 2033 based on traffic volume forecast.

39. For the WWTP and wastewater collection component, construction has been estimated to start in September 2013 and to end in December 2016. The assessment period for the construction stage will cover these 40 months. Operational impact will be assessed based on the assumption that the WWTP reaches its design capacity.

F. Evaluation Standards and Justification for the Use of PRC Standards

40. In PRC EIA requirements, ambient levels of air, noise, and water quality in the proposed works area determine the appropriate category for point source or impacting emissions and effluent standards for the construction and operational phases of built infrastructure. However, the World Bank Group Environmental Health and Safety (EHS) guidelines8 (see below) are based on best practice construction and operational procedures. Both the PRC standards and EHS guidelines will be used in the assessments.

41. Air quality: The PRC ranks air quality into 3 classes according to its Ambient Air Quality Standard (GB 3095-1996), with Class I being having the best air quality and Class III the worst air quality. The ambient air quality in the assessment area of this project has been assigned to meet GB 3095-1996 Class II standards. A new standard has been issued in 2012 (GB 3095-2012), which will become effective on 1 Jan 2016. Table II.4 compares PRC‘s GB 3095-1996 Class II standards with the GB 3095-2012 standards and the World Bank Group‘s EHS standards.

8 World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines, World Bank, Washington. 21

Table II.4: Comparison of PRC’s GB 3095-1996, GB 3095-2012, and World Bank Group EHS ambient air quality standards

Air Quality GB 3095-1996 Class II GB 3095-2012 Class II World Bank Group Time Parameter (mg/m3) (mg/m3) EHS9 (mg/m3) Annual average 0.06 0.06 0.125-0.05 (0.02 SO Daily average 0.15 0.15 2 guideline) Unit hour average 0.50 0.50 0.07-0.03 (0.02 Annual average 0.10 0.10 guideline) PM10 0.075-0.15 (0.05 Daily average 0.15 0.15 guideline) 0.375-0.75 (0.25 Daily average n/a 0.15 PM2.5 guideline) Unit hour average n/a 0.35 n/a Annual average 0.08 0.04 0.04 guideline

NO2 Daily average 0.12 0.08 n/a Unit hour average 0.24 0.20 0.20 guideline Daily average 4.0 4.0 n/a CO Unit hour average 10.0 10.0 n/a

42. In the construction phase, air pollutants from dust and earthworks should comply with the Class II standard specified in PRC‘s Air Pollutant Integrated Emission Standard (GB 16297-1996).

43. Noise: According to the Technical Specifications to Determine the Suitable Areas for Environmental Noise of Urban Area (GBT 15190-94), the area within 200m on both sides of road or road junction should comply with the corresponding provisions in Environmental Quality Standard for Noise (GB 3096-2008) according to the ―functional region‖ classification of the area. The area mainly serving for cultural and educational institutions shall comply with Functional Region 1 standard, and the residential, commercial and industrial mixed area shall comply with Functional Region 2 standard. Lower standards apply for functional regions consisting of industrial areas and major roads. Standards for various functional regions and in comparison with the World Bank Group‘s EHS guidelines are listed in Table II.5.

9 World Bank Group 2007, Environmental, Health and Safety Guidelines General EHS Guidelines, World Bank, Washington. 22

Table II.5: Environmental quality standards for noise (Equivalent Sound Level: LAeq: dB)

Noise GB 3096-2008 World Bank 9 Functional Applicable Area Standards Group EHS Region Day Night Day Night Areas needing extreme quiet, such as convalescence 0 50 40 areas Area mainly for residence, cultural and educational 55 45 1 55 45 institutions 2 Residential, commercial and industrial mixed area 60 50 3 Industrial area 65 55 70 70 4a Area on both sides of urban road traffic trunk line 70 55 Note: Functional Region 4 is divided into 4a for trunk roads and 4b for railway lines

44. Construction noise will be assessed against the standards in Emission Standard of Environmental Noise for Boundary of Construction Site (GB 12523-2011) which specifies day time (0600 – 2200 hr) construction noise limit of 70 dB(A) and night time (2200 – 0600 hr) construction noise limit of 55 dB(A). For noise from road traffic the Environmental Quality Standard for Noise (GB 3096-2008) will be the relevant PRC impact standard.

45. Surface water quality: For water quality assessment, the determining standard will be PRC‘s Environmental Quality Standards for Surface Water (GB 3838-2002). This standard is set out in Table II.6. The Category IV standard is the minimum required runoff standard for road construction and operation in an urban environment. Category III is the relevant classification of the receiving Beida River for the proposed WWTP. There is no EHS guideline or target for water quality in this context.

Table II.6: Environmental quality standards for surface water (Unit: mg/l)

GB 3838-2002 DO IMn BOD COD NH3-N Category III ≥5 ≤6 ≤4 ≤20 ≤1.0 Category IV ≥3 ≤10 ≤6 ≤30 ≤1.5

46. Wastewater produced during road construction will be assessed against the standard Grade III of Environmental Quality Standards for Surface Water (GB 3838-2002) to ensure its suitability for draining into rivers and channels.

47. The effluent quality of the WWTP is required to meet the Class 1B Standards of Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB 18918-2002) and Amendment (MEP Announcement in 2006, No. 21)).The EHS Guidelines acknowledge the PRC standard GB 18918-2002 (Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant) as internationally acceptable standard. The area of influence will need to cover downstream water quality and its potential impact on downstream users (see Table II.3 for the assessment area). Additional standards pertaining to noise, odor and air emissions will extend the 23

terrestrial area of influence beyond the site boundary (see Table II.3).

48. Other relevant standards for the assessment include:

i. Class II standards of Emission Standard for Odor Pollutants (GB 14554-93) ii. Discharge Standard for Municipal Wastewater (CJ 3082-1999) iii. Class II standards of Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008) iv. Class II standards of Air Pollutants for Coal-burning, Oil-burning, Gas-fired Boiler (GB 13271-2001)

III. DESCRIPTION OF THE PROJECT

A. General

49. The Project will improve urban infrastructure facilities and the environment in Jiuquan Municipality in Gansu Province, which will assist in the upgrading of urban living condition and rehabilitating the environment. Improvements in the urban infrastructure in the project area will contribute to long-term poverty reduction and bring about an immediate improvement in quality of life of all the about 300,000 residents in the central urban area, and thus support Asian Development Bank (ADB)‘s Strategy 2020 (2008).

50. Impact and Outcome. The impact will be improved living conditions in Jiuquan City. The outcome will be improved urban environment, wastewater treatment, transport services, and windbreak in Jiuquan City.

51. This project has four components: (i) urban roads, bridges and associated public utility infrastructure; (ii) wastewater collection and treatment; (iii) windbreak tree plantations; and (iv) institutional strengthening and capacity development of related urban environment and transport services. Table III.1 summarizes the scope of the components under ADB financing.

Table III.1: Project components and sub-components under ADB financing Component Sub-component Content Roads, bridges & public North Riverside Road 5.76 km of new dual 3 lane primary trunk road with utilities red line width of 60 m; Road cross-section includes NM traffic lanes and pedestrian sidewalks on both sides. South Riverside Road 5.43 km of new dual 3 lane primary trunk road with red line width of 60 m; Road cross-section includes NM traffic lanes and pedestrian sidewalks on both sides Panxuan Road (including the 4.69 km dual 3 lane primary trunk road extension of Xiyi Bridge) the existing Panxuan Road, which includes the construction of the new 590 m long Xiyi Bridge. Red line width is 60 m; Road cross-section includes NM traffic lanes and pedestrian sidewalks on both sides Jiuyin Bridge Reconstruction of this existing 200 m long bridge into a dual 2 lane secondary trunk road with red line width of 25 m;

Component Sub-component Content Pedestrian sidewalks on both sides. Public utilities To be laid beneath the roads: 9.50 km of gas supply pipelines 11.94 km of heat supply pipelines 15.13 km of power cable conduits 10.62 km of telecommunication conduits 7.77 km water supply pipelines 9.32 km of wastewater collection pipelines Wastewater collection & Jiuquan No. 2 WWTP New, 60,000 m3/d wastewater treatment capacity, treatment using A2O treatment process (anaerobic-anoxic-oxic) Effluent quality class IB; located northeast of the 7th Block of Shuimogou in Quanhu Township; on-site pre-treatment facility (separate thickening and dewatering) with 30t/d capacity. Wastewater collection 37 km of sewer network (HDPE double wall pipelines corrugated pipe for pipe diameters 300 mm and smaller, and reinforced concrete pipe for pipe diameters 400 mm and larger). Windbreak tree 60.5 ha including 3.7 ha existing forest land and new plantations plantation of 56.8 ha. New plantation includes 40,082 trees and 25,410 bushes. The proposed major tree and bush species include Sophora Japonica, Populus, Cloves, Triloba, Boxwood, Privet and Dianthus. Drip irrigation system Institutional Provide technical advice to PMO and IA in strengthening and engineering design review, procurement, and project capacity development management and supervision. Relevant PMO and IA staff will receive training on financial management and reporting, disbursement and procurement procedures, safeguards requirements, and reporting.

Source: Feasibility Study Report

B. Roads, Bridges and Associated Utilities

52. This component consists of constructing the new North Riverside Road and the South Riverside Road, extending the existing Panxuan Road which includes building the new Xiyi Bridge across the Beida River, reconstructing the existing Jiuyin Bridge, and laying pipelines and conduits for the provision of public utilities including heating, electricity, natural gas,

telecommunication, water supply and wastewater collection (see Table III.1 above). Figure III.1 shows the project road and bridge alignments.

Figure III.1: Location of project roads and bridges.

53. The North Riverside Road to the west of Chainage K5+707 is under construction with separate government funding. The proposed alignment extends eastward along the north bank, which is a man-made dyke, of Beida River from the intersection with National Highway G312 at Chainage K5+707 to the intersection with the proposed city ring road in the form of a T-junction (Chainage K11+467).

54. The South Riverside road starts at Chainage K0+000 near the manmade lake to the west of the riverside landscape area. It runs eastward along the south bank, which is a man-made dyke, of Beida River, intersects with Panxuan Road and terminates at National Highway G312. Figure III.2 shows a typical cross-section of the North and South Riverside Roads.

Figure III.2: Typical cross-section of North and South Riverside Roads

55. The extension of Panxuan Road starts from its existing junction with National Highway G312 to intersect both the South and North Riverside Roads via the new Xiyi Bridge across Beida River. The extension will run along a new alignment proposed in the urban master plan. Figure III.3 shows a cross-section of the Panxuan Road extension.

Figure III.3: Cross-section of Panxuan Road extension

56. There are two bridges proposed in the road component, namely Xiyi (―West One‖) Bridge and Jiuyin Bridge. Xiyi Bridge is a new bridge for providing the main connection for the extension of Panxuan Road. Jiuyin Bridge is an existing bridge with structural defect which will be replaced and widened to meet the current design capacity requirements.

57. The proposed project roads will link up the North Urban Zone, the West Industrial Zone, the Old Urban Zone and the Jiu-Jia New Urban Zone (see Figure II.1). The project area is currently a rural area located at the northern and western edge of Jiuquan‘s urban area. It is approximately 2 km to the north of the existing urban center, and 3 km to the north of the new government administration center. The existing urban area covers approximately 10 km2 and 80% of the West Industrial Zone is being built with coverage of approximately 19.87 km2. New construction is also taking place in the Jiu-Jia New Urban Zone. The three new areas are planned to accommodate a population of 265,000, covering an area of 33.52 km2.

58. Provisions for Pedestrians and Cyclists. As shown in Figures III-2 and III-3, lanes are provided for non-motorized vehicles, mainly cycle traffic, and pedestrians from the safety point of view. These lanes also provide, to some extent, environmental and public health buffer between the road traffic and road side developments. To facilitate safety of non-motorized vehicles and pedestrians in crossing new and existing road junctions, traffic channelization at junctions will be implemented. Two stage pedestrian crossings will be considered if needed. In the case where non-motorized vehicles are involved, cyclists will need to follow the pedestrians sharing the same crossing and signal phasing at junctions. Figure III.4 shows a typical arrangement of pedestrian/cycle crossings at junction.

Figure III.4: Arrangement of pedestrian/cycle crossings at junction

59. Traffic Growth and Volume Forecast. Traffic growth rates have been estimated in the FSR by the LDI to be 7.5% from 2015-2019, 4.8% from 2020-2024, 3% from 2025-2029 and 2.5% from 2030-2034. Traffic volume forecasts for the project roads and bridges in the FSR are provided in Table III.2 below, showing two-way traffic volumes on the proposed roads and bridges and the degree of saturation in terms of volume to capacity ratio (V/C). The forecasts show that there will be sufficient link capacity for carrying the projected traffic.

Table III.2: Traffic volume forecast(i) and level of saturation (v/c ratio(ii)) in 5-year increments Road Section 2018 2023 2028 2033 North Riverside Road 1,811 (0.41) 2,332 (0.53) 2,703 (0.61) 3,116 (0.71) South Riverside Road 1,853 (0.42) 2,386 (0.54) 2,767 (0.63) 3,189 (0.73) Panxuan Road extension 1,949 (0.44) 2,510 (0.57) 2,909 (0.66) 3,354 (0.76) Xiyi Bridge 1,853 (0.41) 2,386 (0.53) 2,767 (0.61) 3,189 (0.71) Jiuyin Bridge 1,247 (0.52) 1,606 (0.67) 1,862 (0.77) no data Notes: (i) Traffic volume is for two-way traffic in pcu/h; (ii) v/c ratio in parenthesis. Source: Feasibility Study Report

60. Flood Control and Drainage Considerations. The riverside roads are designed to 1-in-50-year flood events. There are existing flood protection dikes on both sides of the river designed to a 1-in-50-year return period. The proposed roads are aligned in parallel with the dikes and the levels of the roads are generally higher than or the same as the level of the dykes. As such, road users would be able to enjoy the scenic views on both sides of the river. Storm water runoff will be collected via road surface gullies located at intervals of around 25–50 m, and collected to the underground drainage system.

61. Earthwork. Table III.3 shows the earthwork volume for the three roads. At least 787,060 m3 of earth fill would need to be imported. These will be obtained from the nearby man-made lake excavation, which is near completion with excavated earth materials stockpiled nearby ready for use by this project. Earth cut will be re-used on site to the maximum extent practicable, such as for the vegetation in the median and road side separation. Those that cannot be re-used on site will be transported to the riverside park and wetland construction site for reuse.

Table III.3: Earthwork volumes for the proposed roads Red Line Width Earth Cut Earth Fill Road Section Length (km) (m) Quantity (m3) Quantity (m3) North Riverside Road 5.76 60 149,815 291,813 South Riverside Road 5.43 60 219,148 230,379 Panxuan Road extension 4.69 60 75,106 708,937 Total 15.88 444,069 1,231,129 Source: Feasibility Study Report

62. Pavement. Asphalt concrete pavement has been selected over cement concrete pavement because it is relatively easy to be applied and repaired. In addition, it will be more appropriate for

the local weather condition and to a certain extent it reduces road traffic noise in comparison with rigid concrete pavement. The proposed pavement structure designs are adequate in meeting the projected traffic loading. Particular attention will be taken to account for the low temperatures in Jiuquan to avoid pavement surface cracking.

63. Bridges. There are five river bridge crossings in Jiuquan‘s urban area: (i) Qing-Jia expressway crossing, (ii) G312 crossing, (iii) Xiongguan Road crossing, (iv) Jiuyin Road crossing, and (v) Jiuhang Road crossing. The G312 crossing is being widened due to the growing traffic demand. Jiuyin Road Bridge has a weight limit imposed on traffic across the river. The route is a secondary distributor road serving mostly through traffic instead of urban traffic. The existing river crossings are not able to meet the demand of growing urban traffic. The bridge sub-component under this project includes two Beidahe River crossings: (i) construction of a 590 m new road bridge (the Xiyi Bridge) as the river crossing for Panxuan Road and (ii) reconstruction of a 200 m existing bridge (the Jiuyin Bridge) as the river crossing for Jiuyin (i.e. Jiuquan-Yinda) Highway.

64. The Xiyi Bridge will be located at the northwestern end of the Panxuan Road extension leading to Wei Two Road, which is the gateway to the West Industrial Zone in Jiuquan. The connection and accessibility between both sides of the river will be strengthened considerably by this bridge. It is a significant transport infrastructure in the urban road network of Jiuquan.

65. The existing Jiuyin Bridge has weight restriction for heavy vehicles due to an inherent structural capacity issue. Vehicles with weights over 2 tons are not allowed to use this bridge. A replacement bridge will be built under this project following the original alignment with matching road cross section to the approach road from the south bank of Beida River. It has been designed as a dual 2-lane bridge with a length of 200 m.

66. Hydro-geological and Seismicity Considerations. Jiuquan has a continental desert climate with limited water resources and high evaporation rates. The annual average precipitation is just 84 mm but there is significant seasonal run-off from the snow melting of Qilian Mountains. This coupled with the torrential rainfall during summer causes periodic seasonal flooding. The two bridges cross Beida River, which is a section of the Taolai River. The flood in this river is formed by the upstream rainstorm of the mountain area. It is a kind of seasonal flow which is very low in the dry season and even during the wet season. The maximum flood event would happen from June to September, in particular during July and August. The flood peak is very concentrated and can be very destructive, and the flood generally lasts about three or four days. Both bridges are therefore subject to flooding events. The Ministry of Construction‘s (MOC) Technical Standard of Highway Engineering and the Criteria of the Municipal Bridge Design requires a 1-in-100-year return period of storm event as the design criterion for large bridges. The PRC Earthquake Parameter Map (GB 18306-2001) shows that the two bridges are located in a Seismic Zone, where the acceleration peak equals 0.15 g, and fall into Earthquake Intensity Zone VII. Seismic design will be in accordance with MOC design standards. Earthquake intensity will be established

in association with the National Seismic Authority as a basis of estimating the seismic load in defining the bridge structural basic frequency and dynamic structural response at the preliminary and detail design stages.

67. Bridge Scheme. There is no navigation requirement for the Beida River. The bridge structures were prepared for the locations where the bridge deck elevations are in line with flood event requirements. The designed deck levels for Xiyi and Jiuyin Bridges are considered appropriate. There is no navigation requirement for the span length and therefore, the span arrangement can be based on the structure type and least cost criteria. The Xiyi Bridge will be a single tower cable-stayed bridge with main spans of 300 m and a pre-stressed concrete box girder with spans of 120 m and 150 m on the southern and northern banks respectively (Figure III.5). The reconstructed Jiuyin Bridge will be a pre-stressed concrete continuous girder formed by a continuous rigid frame with a V shape pier together with an arch at the middle span with a span arrangement of 200 m (Figure III.6). The scheme adopts a twin V shape pier as substructures for main piers. The piers rest on pile cap as the foundation for other substructures. Both bridges will include pedestrian paths on both sides and channelized non-motorized transport lanes to increase traffic safety.

Figure III.5: Photomontage of Xiyi Bridge

Figure III.6: Jiuyin Bridge elevation

68. Bridge Construction Method. The construction approach will adopt a standardized method and equipment for similar bridges such as continuous box girder and simply supported girder or beam in the PRC. These are standard forms of bridge superstructure, which are commonly used in the PRC. Bored piles are adopted for foundations. The construction schedule and procedures are presented in the FSR. Major construction difficulties are not expected.

69. For Xiyi Bridge superstructure, pre-stressed concrete continuous box girder will be cast on site on temporary framework. It is a technique commonly used in the PRC. The main span of the cable stayed structures will be cast in situ on hanging segment basket assembling by cantilever. The FSR gives the following construction method:

(i) Step 1 – Construct the foundation of main piers, piers and number 0# box girder segment, the tower and number 1# girder segment symmetrically;

(ii) Step 2 - Assemble the main girder and cable by balanced cantilever segment method and the approach bridges at the same time;

(iii) Step 3 - Repeat step 2 until the closure of segments, and construct the side span main girder on temporary framework;

(iv) Step 4 - Construct the last segment of main structures at the side span;

(v) Step 5 - Construct the segment of main structures at the middle span;

(vi) Step 6 - Construct the bridge deck.

70. For the Jiuyin Bridge superstructure the proposed construction procedures are as follows:

(i) Step 1 - Construct the bored pile foundations, and V type pier for two main piers;

(ii) Step 2 - Construct the main girder by balanced segmental cantilever method;

(iii) Step 3 - Complete the deck on temporary formwork and construct the arch and ties;

(iv) Step 4 - Complete the final bridge deck.

71. For various bridge substructures, bored pile foundations are proposed in the FSR. The construction technique of these substructures is well-developed in the PRC and should not present any difficulty during construction. Bridge foundations will be constructed during the dry season when the flow of the Beidahe River is minimal.

72. Operation and Maintenance. The JMG has identified the Jiuquan Economic Development and Investment (Group) Company Limited (JEDIC) as the implementing agency (IA) of the project, responsible for the construction and implementation of all components in this ADB project. The Jiuquan Municipal Traffic Bureau is responsible for organizing the construction, maintenance and management of the municipality's highways, waterways and other transport infrastructure. It is responsible for the preparatory work of key transport infrastructure projects (including the preliminary design), project implementation and acceptance of completed works. It is also responsible for construction and management of passenger and freight transport stations, and shipping terminals. In addition, the bureau is responsible for organizing emergency repairs for natural disasters that obstruct traffic, such as roads damaged by water. It participates in traffic poverty alleviation work.

73. The Jiuquan Municipal Urban Public Utilities Management Department, under the Jiuquan Municipal Construction Bureau, is responsible for the maintenance of urban roads, bridges, and drainage for the entire old city area, and part of the works in the new urban area. The department is a government agency relying on municipal government funding to undertake road maintenance works. It has 30 formal staff and three divisions, namely the engineering division, supervision division, and an administration office.

74. Associated Utilities. These have been listed in Table III-1, consisting of gas, heat and water supply pipelines; wastewater collection pipelines; and telecommunication and power conduits.

75. Linked facilities. Based on the Jiuquan Urban Master Plan (2011-2030), the source of gas will be from the West to East Natural Gas Transfer Scheme at the Jiu-Jia Natural Gas Distribution Station through pressurized pipeline to the Jiuquan Natural Gas Station and its existing pipeline network; the heat and power will be from the planned Co-generation Power Plant that is under construction; water supply will be from the Western Suburban and the No. 3 WTPs that are both

being expanded. Figure III.7 shows their locations.

Western Suburban WTP (under expansion)

Jiu-Jia Natural Gas Distribution No. 3 WTP (under Station Planned Co-generation expansion) Power Plant (under construction

Jiuquan Natural Gas Station

Figure III.7: Sources of water supply, gas, heat and power

C. Wastewater Collection and Treatment

76. This component includes the construction of the new Jiuquan No. 2 WWTP and the associated wastewater collection system (see Table III.1 above). Although not to be financed under this project, effluent reuse and the development of a recommended plan for sludge re-use, treatment and disposal are important aspects that will be stressed in this project. Figure III.8 shows the location of the Jiuquan No. 2 WWTP and the alignments of the wastewater collection system. The catchment area of the collection system covers the West Industrial Zone, the South Industrial Zone, the High Speed Rail Zone, the Jiu-Jia New Urban Zone, and overflow from the existing Jiuquan WWTP.

Figure III.8: Location of the wastewater treatment plant and wastewater collection pipelines

77. Wastewater Flow Projection. Wastewater flow was projected in the FSR by correlating wastewater generation with water consumption while accounting for unrecoverable losses in the distribution system and at the point of use. An 80% wastewater reduction factor was used to convert the water supply volume to a wastewater generation volume, after accounting for losses at the point of use (12% based on the Jiu-Jia Integration Urban Master Plan Outline). This figure is an empirical value that is often used, as provided in the Water Supply and Drainage Design Manual Volume 5.10 Table III.4 shows the results of wastewater flow projection. Based on the flow projection, the plan is to build a new WWTP with a treatment capacity of 100,000 m3/d. This, combined with the 40,000 m3/d treatment capacity of the existing Jiuquan WWTP, should be able to meet the long term 2030 wastewater treatment need in urban Jiuquan. Phase 1 of this new WWTP, the Jiuquan No. 2 WWTP, with a treatment capacity of 60,000 m3/d is to be financed by ADB under this project.

10 Beijing Municipal Engineering Design and Research Institute. 2008. Water supply and drainage design manual. Volume 5: Urban drainage. China Architecture Industry Publisher. 36

Table III.4: Results of wastewater flow projection Current Short Term Mid-term Long Term Description Status 2015 2020 2030 Average daily water demand (x 1,000 m3/d) 86.2 123.1 156.9 200.0 Reduction factor for water distribution system loss 88% 88% 88% 88% Wastewater reduction factor 80% 80% 80% 80% Projected wastewater flow (x 1,000 m3/d) 60.7 86.7 110.5 140.8 Wastewater collection rate 70% 80% 90% 100% WWTP influent flow (x 1,000 m3/d) 42.5 69.4 99.5 140.8 Wastewater treatment capacity (x 1,000 m3/d) 40 100 100 140 Wastewater treatment rate 66% 80% 90% 100% (actual) (planned) (planned) (planned) Source: Feasibility Study Report

78. Influent and Effluent Water Quality. Design parameters for influent water quality were based on (i) influent water quality design parameters for the existing Jiuquan WWTP upgrade, which were deemed suitable and reasonable based on its current operation and (ii) PRC‘s Discharge Standard for Municipal Wastewater (CJ 3082-1999) for wastewater influent from industrial sources. CJ 3082-1999 provides industrial wastewater standards for discharging into municipal sewers and has been strictly enforced in Jiuquan since 2010. Main industries have pre-treatment facilities and on-site monitoring system directly connected to the Jiuquan EPB. EPB confirmed that industries comply with industrial wastewater discharge requirements. If pretreatment of industrial wastewater meets the CJ 3082-1999 standard, the pollutant levels will be lower than the design levels used in the design of the Jiuquan WWTP upgrades. This suggests that it is safe to use the Jiuquan WWTP upgrades design parameters.

79. Compared to municipal wastewater, industrial wastewater constituents are often less diverse and unbalanced in nutrient content. Thus, the ratio of pollutants and constituents of the influent wastewater must be carefully considered. In doing so, there are two factors indicating that the design parameters used in the Jiuquan WWTP upgrade are still appropriate for design of the new Jiuquan No. 2 WWTP. The first is industry types contributing to the wastewater stream. There are industrial parks focused on machinery and inorganic building materials, which typically generate wastewaters with low BOD/COD ratios; and there are also industrial parks focused on food, dairy, and wine and liquor production, which typically have high BOD/COD ratios (see Appendix 7). With the mix of wastewaters from these various industries, the problems of nutrient imbalance are further reduced. Secondly, domestic wastewater accounts for the majority of the wastewater (60%), while industrial wastewater accounts for a smaller portion (40%). Based on the two factors mentioned above, the nutrient imbalance and homogeneity of individual wastewaters will cause only minor issues to the operation of the WWTP, which can be resolved by operational adjustments in the future.

80. Treated effluent from the Jiuquan No. 2 WWTP will be discharged to the Beida River, which

has been assigned a Category III water body according to PRC‘s Environmental Quality Standards for Surface Water (GB 3838-2002) and is the only receiving water body of urban Jiuquan‘s wastewater. Based on PRC‘s Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB 18918-2002) and the Notice on Amendment of the Standards issued by the MOE in 2006, the Jiuquan EPB requires wastewater discharge in the Jiuquan segment of the Beida River to meet Class 1B effluent standards (Document [2007]034, dated March13, 2012) (Appendix 2). Table III.5 shows the influent and effluent water quality used as the design parameters for Jiuquan No. 2 WWTP.

Table III.5: Influent and effluent water quality used as the design parameters for Jiuquan No. 2 WWTP Effluent Water Influent Water Parameter Quality Removal Rate Quality (Class 1B Standard) Chemical oxygen demand (COD) ≤ 780 mg/l ≤ 60 mg/l > 92% 5-day biochemical oxygen demand ≤ 324 mg/l ≤ 20 mg/l > 94%

(BOD5) Suspended solids (SS) ≤ 372 mg/l ≤ 20 mg/l > 95%

Ammonia nitrogen (NH3-N) ≤ 63 mg/l ≤ 15 mg/l > 73% Total nitrogen (TN) ≤ 75 mg/l ≤ 20 mg/l > 76% Total phosphorus (TP) ≤ 10 mg/l ≤ 1.0 mg/l > 90% Source: Feasibility Study Report

81. Location of the Jiuquan No. 2 WWTP. Location of the Jiuquan No. 2 WWTP has been shown in Figure III.2 above. An alternative site was also considered, which will be described in the chapter on Analysis of Alternatives. The proposed site is located northeast of the 7th Block of Shuimogou in Quanhu Township, Jiuquan Municipality. It is 1,600 m east of Jiu-Hang Highway, approximately 500 m from Quanhu Village in Quanhu Township, and 980 m north of Jiu-Jin Highway. The elevation is 1,426 m, located right next to the south bank of the Beida River at the lowest point in the city. Transportation to the site is convenient and the site is presently an open space with no building on site. The total footprint of the Jiuquan No. 2 WWTP will be 14.91 ha, of which 5.95 ha is cultivated land and 8.96 ha is uncultivated land. The land is currently under collective ownership.

82. Treatment Process. The nutrient ratios of the incoming wastewater are presented in Table III.6, which shows that the nutrient ratios are either similar to or exceed the target values, indicating that secondary biological treatment processes and biological nitrogen and phosphorus removal processes are appropriate for treating the incoming wastewater. Among the wastewater constituents of concern, suspended solids are mainly removed via physical processes (sedimentation or filtration), ammonia and nitrogen are removed via biological treatment, and total phosphorus is removed via both biological and physical processes.

Table III.6: Jiuquan No. 2 WWTP influent wastewater nutrient ratios Parameter Value Target

BOD5/COD 0.42 0.45

BOD5/TP 32 20

BOD5/TN 4.32 3 Source: Feasibility Study Report

83. Treatment processes considered included anaerobic/anoxic/oxic (A2/O), oxidation ditch and sequencing batch reactor (SBR). Comparison of these alternative treatment processes will be discussed later in the chapter on Analysis of Alternatives. The A2O process was selected for Jiuquan No. 2 WWTP, with ultra-violet (UV) radiation for disinfection. It is an anaerobic/anoxic/oxic activated sludge process. It modifies the A/O process by adding an anoxic zone between the anaerobic and oxic zones. Nitrification occurs in the aerobic (oxic) zone, after which the mixed liquor in the aerobic zone is recycled to the anoxic zone for denitrification and final nitrogen removal. As the wastewater flows through the three different functional zones, various groups of microorganisms remove the organics, nitrogen, and phosphorus in the wastewater. On a systems level, this process is the simplest nitrogen and phosphorus removal process. By alternating the operation of the three zones, growth of filamentous bacteria can be controlled and sludge bulking can be avoided. The typical sludge volume index (SVI) of less than 100 is conducive to sludge settling, and only mixers are needed in the aerobic and anoxic zones. The strict separation of the anaerobic, anoxic, and aerobic zones allows different microbial populations to thrive, increasing the effectiveness of nitrogen and phosphorus removal. Figure III.9 shows the process flow and Figure III.10 shows the plant layout.

Coarse Screens and Aerated Primary 2 Lift Pumps Grit Sedimentation A O Final Chamber Tanks Bioreactors Sedimentation Tanks

Fine UV Screens Influent Distribution Disinfection Well

Blower

Sludge Sludge Sludge Dewatering Storage Pump

Figure III.9: Jiuquan No. 2 WWTP process flow diagram 39

Coarse Screen Fine Screen Aerated Grit Plant Primary and Pump Building Chamber Effluent Sedimentation Building Room Tanks

Plant Future Sludge Influent Thickening and UV Room Dewatering

Future Sludge Storage Secondary Tank Sedimentation Tanks Reserved Sludge Area for Pumping Expansion Room

Blower Room

A2/O Administrative Reactors Building Future

Garage

Figure III.10: Jiuquan No. 2 WWTP layout

84. Sludge. The higher the concentration of suspended solids and soluble contaminants and the higher the plant process removal efficiencies, the more volume of sludge is generated. It was estimated that the Jiuquan No. 2 WWTP with 60,000 m3/d treatment capacity would generate 13.39 t/d of primary sludge and 13.38 t/d of secondary sludge, totaling 26.77 t/d (numbers refer to dry solids content). Separate process units for thickening and dewatering of sludge will be used. If sludge generation exceeds the design capacity, the plant can respond by temporarily increasing the number of work shifts to operate the sludge treatment equipment. The resulting sludge water content will be approximately 75-80%. For disposal at sanitary landfill, the moisture content of the sludge should not be more than 60% according to PRC‘s Disposal of Sludge from Municipal Wastewater Treatment Plant – Quality of Sludge for Co-landfilling (GB/T 23485-2009).

85. Sludge treatment and disposal has always been a key point of research in the domestic water industry. To help accelerate the resolution of the PRC‘s sludge treatment and disposal problems, the State Council on April 19, 2012 issued the Notice on the 12th FYP for Construction of Sludge Treatment and Wastewater Reuse Facilities. The plan targets a sanitary sludge disposal rate of 70% by 2015, compared to 25% in 2010. In response, the Jiuquan Municipality has begun considering a treatment and disposal program in the municipality‘s plans.

86. A sludge treatment and disposal feasibility study is currently being conducted by a local design institute. The study will include the treatment of dewatered sludge (75-80% water content) via high temperature aerobic composting of sludge from both the existing Jiuquan WWTP (19 t/d) and the proposed Phase 1 of Jiuquan No. 2 WWTP (27 t/d), totaling 46 t/d of dry sludge. The end product can be used as soil conditioner or as fertilizer for urban landscaping and windbreak tree areas. JMG will explore the options of using the sludge in gardens and parks, for brick making, for land improvement and as agricultural soil by meeting the following PRC standards:

(i) The Disposal of Sludge from Municipal Wastewater Treatment Plant - Quality of Sludge used in Gardens or Parks (GB/T 23486-2009);

(ii) The Disposal of Sludge from Municipal Wastewater Treatment Plant – The Quality of Sludge used in Making Brick (CJ/T 289-2008)

(iii) The Disposal of Sludge from Municipal Wastewater Treatment Plant – Sludge Quality for Land Improvement (CJ/T 291-2008);

(iv) The Disposal of Sludge from Municipal Wastewater Treatment Plant – Control Standards for Agricultural Use (CJ/T 309-2009).

87. This project will have a tender package for consulting services to review current global and PRC knowledge and experience in sludge re-use, treatment and disposal technologies and practices, and to conduct chemical testing of sludge from the existing Jiuquan WWTP. This will support the above feasibility study in resolving the sludge issue in Jiuquan.

88. Before the central sludge treatment facility is built and operational, an interim measure is to construct sludge drying beds on the Jiuquan No. 2 WWTP site (in the area reserved for Phase 2 expansion). The beds will be designed with a leachate collection system, where the leachate is collected and conveyed back to the WWTP for treatment. To take advantage of the high evaporation rate in Jiuquan, the sludge will be spread out on the beds and air dried to <60% moisture content so that it complies with the moisture content reqquirement for landfill disposal. At the same time, chemical testing of the sludge will be conducted to determine whether the sludge is suitable for re-use, especially as a soil conditioner for the windbreak tree plantations. The Forestry Bureau of Suzhou District has issued a letter dated 17 July 2012 indicating acceptance of such product for windbreak tree plantations (Appendix 6).

89. The landfill disposal method will only be used as a temporary and backup disposal option. The Urban Environmental Sanitation Bureau of Suzhou District has issued a Notice (Document [2012] No. 59) on 18 July 2012 indicating acceptance of disposing the dewatered sludge from Jiuquan No. 2 WWTP at the District‘s sanitary landfill (Appendix 3).

90. Effluent Discharge and Re-use. The practice of effluent re-use is increasing internationally and domestically in response to water scarcity issues. Based on the ADB‘s Urban Wastewater Reuse and Sludge Utilization Policy Study (2010), non-potable re-use applications are most prevalent, including agricultural irrigation, industrial re-use as cooling or process water, and municipal uses (street cleaning, landscape irrigation, and toilet flushing). Indirect potable re-use such as groundwater recharge and blending with reservoir water is also practiced at a minor level in some regions. Additional treatment of WWTP effluent in Jiuquan to provide reclaimed water for industrial re-use, landscape irrigation, street cleaning, etc not only follows the national strategy of resource utilization and discharge reduction, but also mitigates the Jiuquan-Jiayuguan region‘s water scarcity problems.

91. On March 13, 2012, the Jiuquan EPB issued an official letter requiring the Jiuquan No. 2 WWTP to meet Class 1B effluent standards before discharge into the Beida River (see Appendix 2). In addition, for wastewater re-use, Class 1A effluent standards will need to be met. Four alternatives for non-potable reuse in Jiuquan have been examined: (i) as cooling water in power plants; (ii) for street cleaning and landscape irrigation; (iii) for agricultural irrigation; and (iv) for windbreak tree irrigation. Toilet flushing was not considered due to the distance between the Jiuquan No. 2 WWTP and the urban area and the high costs of greywater plumbing.

92. Based on the comparison of alternatives (presented in Chapter VI), the following decision was taken: (i) In the short term, effluent from the Jiuquan No. 2 WWTP will be discharged to the nearby Beida River; (ii) In the mid term, effluent will be reclaimed as cooling water for the Jiugang Mingshawan Power Plant and the Jinta Co-generation Power Plant. The JPMO, in a letter dated August 24, 2012 (Document [2012], No. 81), confirmed the commitment to use the effluent from the Jiuquan No. 2 WWTP at these two power plants and that infrastructure needed for effluent

conveyance to and further treatment at these power plants will be borne by the power plants (Appendix 4). The present price for supply of treated effluent to power plants is CNY0.8 per 10,000 m3 (see Appendix 4). Effluent re-use as cooling water for power plants has the advantage of year round use, compared to the other reuse alternatives.

93. For industrial re-use including as cooling water, the effluent quality must meet PRC‘s The Use of Urban Recycling Water – Water Quality Standard for Industrial Uses (GB/T 19923-2005). Table III.7 presents the water quality standards for various industrial uses in GB/T 19923-2005 and also compares these standards with Classes 1A and 1B effluent standards in PRC‘s Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB 18918-2002), showing the need to treat to Class 1A standard and better for industrial re-use as cooling water.

Table III.7: Effluent quality standards for industrial re-use, comparison of GB/T 19923-2005 with GB 18918-2002 GB/T 19923-2005 GB 18918-2002 Cooling Water Product Boiler Control Parameters Cleaning and Class 1A Class 1B Once Open Replenishing Water Process Standard Standard Through Circulating & Water Replenishing Water pH 6.5–9.0 6.5–8.5 6.5–9.0 6.5–8.5 6.5–8.5 6-9 6-9 SS (mg/l) ≤ 30 --- 30 ------10 20 Turbidity (NTU) ≤ --- 5 --- 5 5 ------Color (dilution factor) ≤ 30 30 30 30 30 30 30

BOD5 (mg/l) ≤ 30 10 30 10 10 10 20 COD (mg/l) ≤ --- 60 --- 60 60 50 60 Fe (mg/l) ≤ --- 0.3 0.3 0.3 0.3 ------Mn (mg/l) ≤ --- 0.1 0.1 0.1 0.1 ------Chloride ion (mg/l) ≤ 250 250 250 250 250 ------

SiO2 (mg/l) ≤ 50 50 --- 30 30 ------Total hardness 450 450 450 450 450 ------(as CaCO3 mg/l) ≤ Total alkalinity 350 350 350 350 350 ------(as CaCO3 mg/l) ≤

SO4 (mg/l) ≤ 600 250 250 250 250 ------(1) (2) (2) NH3-N (as N mg/l) ≤ --- 10 --- 10 10 5(8) 8(15) TN (as N mg/l) ≤ ------15 20 TP (as P mg/l) ≤ --- 1 --- 1 1 0.5 1 Total dissolved solids 1000 1000 1000 1000 1000 ------(mg/l) ≤ Oil & grease (mg/l) ≤ ------1 3 Petroleum hydrocarbon --- 1 --- 1 1 1 3 (mg/l) ≤ Anionic surfactant --- 0.5 --- 0.5 0.5 0.5 1 (mg/l) ≤ Residual chlorine 0.05 0.05 0.05 0.05 0.05 ------(mg/l) ≤ Fecal coliform bacteria 2000 2000 2000 2000 2000 1000 10000 (count/l) ≤

GB/T 19923-2005 GB 18918-2002 Control Parameters Cooling Water Cleaning Boiler Product Class 1A Class 1B Water Replenishing and Standard Standard Notes: Water Process

If the heat exchanger of the open circulating cooling water system is made of copper, the waterWater quality standard for NH3-N is < 1 mg/l. The value outside the bracket is for water temperatures > 12oC.

94. Wastewater Collection. The key service areas of Jiuquan No. 2 WWTP include the West Industrial Zone, the South Industrial Zone, the Jiu-Jia New Urban Zone and the High Speed Rail Zone. In addition, overflows from the regulating chamber at the existing Jiuquan WWTP will be sent to the No. 2 WWTP for treatment. The project will use HDPE double wall corrugated pipe for pipe diameters 300 mm and smaller, and reinforced concrete pipe for pipe diameters 400 mm and larger. Pipelines will be constructed by open-and-cut method, except for the section crossing the Beida River, where pipe jacking will be used.

95. Operation and Maintenance. O&M is a crucial aspect of the success of a plant. The Jiuquan Municipal Water Supply and Wastewater Company will be responsible for the O&M of the Jiuquan No. 2 WWTP and wastewater pipe network. Before operation of the proposed WWTP, management personnel, operators, and maintenance personnel will receive the necessary management and technical training, including management rules, standard operating procedures (SOP), the use of laboratory instruments etc. Reports will be generated according to SOPs to monitor plant operations. Operational and management experience and lessons learned from the existing Jiuquan WWTP will be extremely valuable for successful O&M of the Jiuquan No. 2 WWTP and should be carefully studied and implemented. The plant has been estimated to need 46 staff. Plant personnel will be trained in stages on SOPs, including obtaining necessary certification, depending on the operational needs of the plant. To ensure that the plant can operate smoothly as soon as possible after construction, training will be provided on the operation, maintenance, and repair of equipment, instruments, boilers etc. during the final stage of construction and the startup and testing period. Laboratory equipment will be procured for testing influent and effluent qualities. Further, an on-line monitoring system will be installed at the effluent discharge point for continuous monitoring of effluent quality, with data transmitted to the Jiuquan EPB.

D. Windbreak Tree Plantations

96. This component involves the planting of windbreak trees outside the project road red lines, between the riverside roads and the dikes, in the Beida River area. It includes the section of North Riverside Road from Wei Six Road to Jiu-Hang Road, and the section of South Riverside Road from Guangdian Road to National Highway G312. Figure III.11 shows the windbreak tree plantation areas.

Project roads Existing roads Planned roads Windbreak green areas

Figure III.11: Windbreak tree plantation areas

97. The project area has low vegetation coverage and poor landscape effect, and suffers from strong sand and windstorms and high evaporation. It is necessary to actively promote planting of windbreak tree plantations, based on Jiuquan‘s 12th FYP, and the views of the Office of the State Council on the construction of an ecological barrier in the Northwest, in conjunction with the urban development planning and development requirements, to improve the landscape effect of the project area and improve the urban environment. Windbreak tree plantations along the Beida River will establish an ecological corridor between the water body of Beida River and the land on the banks and to protect against wind and sand fixation.

98. The layout of the windbreak and greening will meet the road traffic and sight distance requirements, to ensure road traffic safety. In the design of the riverside planting, alkali resistant species with robust growth, less susceptibility to pests and diseases, and ease of maintenance will be selected. The design is divided into four levels: large arbor as shade trees, large shrubs to block the line of sight, flowerbed and ground vegetation, and recreational public green space.

99. The large arbor is mainly a single row of evergreen trees at about 5 m intervals, the varieties selected being Sophora japonica and Populus. For the large shrubs, lilac and flowering plum are selected. The flowerbed configuration includes boxwood, privet, Carnation, and lawns. Table III.8 shows the proposed species and their numbers for windbreak tree plantations. Figure III.12 illustrates a typical cross section of road side windbreak tree and landscape planting.

Table III.8: Plant species and quantities for windbreak tree plantation Plant species Quantity Trees Scots Pine Pinus sylvestris var. L. var. mongolica Litv. (樟子松) 3,175 Chinese Spruce Picea asperata Mast. (云杉) 5,644 Juniper Juniperus chinensis L. (圆柏) 3,763 Pagoda Tree Sophora japonica (国槐) 2,709 Chinese Ash Fraxinus chinensis Roxb. (白蜡) 1,693 Weeping Willow Salix babylonica L. (垂柳) 1,354 Chinese Willow Salix matsudana f. Koidz. f. umbraculifera Rehder (馒头柳) 846 Shandong Maple Acer pictum subsp. Thunb. subsp. mono (Maxim.) Ohashi (五角枫) 2,351 Poplar Populus alba var. L. var. pyramidalis Bunge (新疆杨) 10,580 Cherry Plum Prunus cerasifera Ehrh. (红叶李) 1,881 Staghorn Sumac Rhus typhina L. (火炬树) 1,853 Dragon Juniper (龙柏球) 4,233 Shrubs and Ground Cover Yellow Rose Rosa xanthina Lindl. (黄刺玫) 5,080 Forsythia Forsythia suspensa (Thunb.) Vahl (连翘) 5,588 Double-flowering Plum Amygdalus triloba (Lindl.) Ricker (榆叶梅) 5,842 Early Lilac Syringa oblata Lindl. (紫丁香) 6,350 Flowering Quince Chaenomeles speciosa (Sweet) Nakai (贴梗海棠) 1,270 False Spiraea Sorbaria sorbifolia (L.) A. Braun (珍珠梅) 1,280 False indigo bush Amorpha fruticosa L. (紫穗槐) 4/m2; 2,217.23 m2 Chinese tamarisk Tamarix chinensis Lour. (柽柳) 16/m2; 5,543.07 m2 Vicary Golden Privet Ligustrum vicaryi (金叶女贞) 25/m2; 4,434.46 m2 Red Japanese Barberry Berberis thunbegii DC. (红叶小檗) 25/m2; 5,400.21 m2 Grass lawn with 30% Ryegrass and 70% Bluegrass 37,835.74 m2 Source: FSR

Figure III.12: Cross-section illustrating road side windbreak tree and landscape planting in sections 1, 2 and 3

100. Irrigation Water. Drip irrigation has been selected because it has been found to be better than U-channel, delivery by low pressure pipe and sprinkler irrigation in terms of water and energy consumption, O&M requirements and land requirements. Drip irrigation minimizes surface evaporation. The annual irrigation water amount is 1.5 to 1.6 m3/ m2 of windbreak tree plantation area, totaling 1,053,000 m3/a.

101. Irrigation water will be sourced from the Taolai River, which provides irrigation water to Jiuquan and Jiayuguan cities. The Taolai River Basin Water Resources Management Bureau of the Gansu Provincial Water Bureau has confirmed in writing [Document (2011) No. 9] of providing Taolai River water for irrigating the windbreak tree plantations in this project (Appendix 5).

102. Based on information in the document, water resource of the Taolai River basin totals 1.48 billion m3 with annual average runoff of 645 million m3. The Taolai River Basin Water Resources Management Bureau of the Gansu Provincial Water Bureau is responsible for allocating the river water to different localities in the river basin for different uses in accordance with the ―Water right allocation plan of river water from major rivers in the Taolai River basin of the Hexi region in Gansu Province‖. According to this plan, approximately 130 million m3 per year (approximately 20% of annual average runoff) are allocated for ―eco-environmental‖ use, of which Jiuquan‘s allocation is approximately 94 million m3 per year (72%). This allocation is mainly intended for irrigation of tree plantations and grasslands to combat wind erosion, and parks and gardens, ornamental lakes, etc. – i.e. for urban and peri-urban landscaping or greening and for screening from dust-storms. Of these 94 million m3 allocated to Jiuquan, 10 million m3 (or 10.6% of the Jiuquan allocation, 7.7% of the eco-environmental use allocation, and 1.6% of the annual average runoff) have been assigned for use in the Jiuquan Integrated Urban Environment Improvement Project including river and wetland components not financed by ADB, and irrigation of windbreak trees and landscape financed by ADB in this project. The use of approximately 1 million m3 per year for irrigating windbreak trees and landscape in this project will remain within the allocated amount.

E. Capacity Development and Institutional Strengthening

103. Gansu Provincial Government (GPG) has authorized Jiuquan Municipal Government (JMG) to act as the executing agency of the project. JMG established the Project Leading Group (PLG) in 2010 and the Jiuquan Project Management Office (JPMO) in 2011 under the leadership of the PLG. JMG has also appointed the Jiuquan Economic Development and Investment Company (JEDIC) as the implementing agency. JEDIC is a state-owned enterprise of JMG and has the capability and experiences of financing and construction of large projects. Three project O&M units have been identified. The Jiuquan Municipal Urban Public Utilities Management Department will be responsible for the O&M of urban roads and utilities. The Jiuquan Municipal Water Supply and Wastewater Company will be responsible for the O&M of the Jiuquan No. 2 WWTP and wastewater pipe network. The Suzhou District Forestry Bureau will be responsible for the O&M of windbreak tree plantations.

104. This output will provide support through an international consulting company recruited to provide technical advice to JPMO and JEDIC in engineering design review, procurement, and project management and supervision. Relevant JPMO and JEDIC staff will receive training at the start of the project, including training on financial management and reporting, disbursement and procurement procedures, safeguards requirements, environmental management, environmental monitoring, and reporting.

105. Capacity development will also include consulting services to review current global and PRC knowledge and experience in sludge re-use, treatment and disposal technologies and 48

practices, and to conduct chemical testing of sludge from the existing Jiuquan WWTP. This will enhance JPMO and JEDIC‘s knowledge and technical know-how in resolving the sludge issue in Jiuquan.

F. Climate Change Adaptation Considerations

106. Based on observed evidence and projections of potential climate change impacts in the PRC (NDRC 200711), arid cities such as Jiuquan could face the following challenges from climate change: (i) higher risk of increasing desertification, (ii) decreasing annual precipitation, (iii) increasing frequency and intensity of extreme weather/climate events in particular droughts and torrential rain, and (iv) retreating of glaciers that could affect water resources.

107. Climate change adaptation measures from this project, directly or indirectly, include windbreak tree plantations, road drainage design and effluent re-use. The planting of windbreak tree belts in this project would protect Jiuquan against wind and sand storms from the desert, reducing the risk of increasing desertification. Windbreak trees also sequester carbon, providing climate change mitigation. Detail design of the drainage system for the road component will examine an allowance for the next tier of flood projection in the, say, design for the event of 1-in-100-year return period for the associated culverts as adaptive measure against road flooding during torrential rain. Re-use of the effluent from the Jiuquan No. 2 WWTP as power plant cooling water, although not to be financed by ADB under this project, is an adaptive measure on conserving water resources.

11 National Development and Reform Commission, People‘s Republic of China. 2007. China‘s national climate change program. 62 pp. 49

IV. DESCRIPTION OF THE ENVIRONMENT

A. General

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

109. The baseline environmental surveys were determined by the kinds of components proposed and the environmental parameters which were relevant to their impact assessment.

B. Physical Setting

110. Geography and Geology. The project is located in the Suzhou District in eastern Jiuquan. Jiuquan is a prefecture-level city located in the northwestern part of Gansu Province, in the midst of the Yarjin, Qilian and Mazong Mountains at the western end of the Hexi Corridor. The city spans approximately 680 km from east to west, and approximately 550 km from north to south. It administers over a territory of 191,200 km2, which is 42% of the size of Gansu Province.

111. Situated on the Jiuquan Basin, Jiuquan‘s topography shows highlands in the south and lowlands in the north, sloping from the southwest to the northeast with altitudes ranging from 1,100-1,500 m. The Qilian Mountain to the south is a series of mountain ranges with altitudes of 3,000 – 5,000 m, with permafrost zone above 4,000 m and snow-capped year round as well as modern glaciers where the rivers in this region originate.

112. The soil in Jiuquan is predominantly grey and greyish-brown desert calcareous clay. In the south, mountain gaps of the Qilian Mountain range from a number of high altitude alluvial fans, creating several oases with flood plains and gravel beaches between them. In the east are ancient deposits of dry desert and wind eroded monadnock. The northern and central parts of Jiuquan are oases formed by the intersecting Shanshui River and Quanshui River, with flatter landform. In the west are borders of the Gobi Desert. Soil types in the Suzhou District show zonal distribution, in the following order from the south to the north: greyish-brown desert soil, irrigated soil, alluvial soil, marsh soil, meadow soil, saline soil and sand storm soil.

113. The project areas lie within the leading edge of the Qilian Mountain piedmont alluvial fan, with stratigraphy belonging to the Quaternary Pleistocene (QPL3) alluvial deposition. The western end of the North and South Riverside Roads and the Panxuan Road extension are in the Gobi 50

Desert area, with underlying deep river gravel layer. Both the eastern sections of the North Riverside Road and the Panxuan Road extension have underlying river alluvial layer.

114. Climate. Jiuquan has semi-desert arid climate, characterized by dry weather with little precipitation, high evaporation, much sunshine, cold winters and hot summers with large temperature differences, cool autumns, and dry springs with much sand storms. The summer season is short, dry and hot while the winter season is long and cold, with temperatures rising rapidly during the spring season. Table IV.1 presents Jiuquan‘s weather characteristics.

Table IV-1: Jiuquan’s weather statistics Parameter Value Remark Annual average temperatures 3.9o C to 9.3o C Frost free days in a year average 127 to 158 days Total sunshine hours in a year average more than 3,300 hours Predominant wind during the year from the southwest, followed by winds from the east and northwest Average wind speed 2.2 m/s Highest wind speed 26 m/s Annual average precipitation 84 mm Occurring from June to October Highest precipitation 158 mm Rainy days in a year average 62 days Annual average evaporation 2,141.4 mm 27.3 times more than the annual average precipitation Highest relative humidity 56% Annual average humidity 46% Maximum snow depth 14 mm Depth of the frozen soil during the 1.32 m Usually from November to April coldest times of the year

115. Hydrology. Rivers in the Jiuquan area are inland rivers belonging to the Shulei River, Hei River and Ha‘erteng River hydrological systems with 15 major rivers. Water resources total 5.3 billion m3. Annual runoff averages 3.2 billion m3. Ground water resources amount to 2.3 billion m3.

116. The river flowing through Jiuquan is the Beida River, part of the Taolai River basin. Rising in the high Qilian Mountains to the south, the area of the river basin draining to Binggou is 6,883 km2. Binggou is the location of a hydropower dam on the Beida River where it leaves the mountains about 50 km upstream (west) of Jiuquan. It is more of a diversion dam rather than a major storage dam. With a storage capacity of less than 80,000 m3, it regulates daily river flows for diversion into the penstock and power station to meet varying power loads. This means the dam would have little effect on flood mitigation or sediment loads downstream.

117. The contributing area downstream of Binggou is limited in extent, so that the river basin upstream of Jiuquan is estimated to be approximately 7,500 km2. Yuanyang Reservoir is located on the river approximately 35 km downstream of Jiuquan with a capacity of about 100 million m3. 51

Downstream of Jiuquan but upstream of Yuanyang Reservoir, the Beida River is joined by a smaller river, the Hongshui, which also drains from the Qilian Mountains. There is extensive irrigation around Yuanyang Reservoir and also around the sister cities of Jiayuguan and Jiuquan. Diversion channels on both banks have their offtake in Jiayuguan, and the left (north) bank channel has a return outfall to the river in Jiuquan. Downstream of Yuanyang Reservoir, the Beida River flows north towards the Gobi Desert and the Hei River, however flow only intermittently reaches the Hei River because of transmission losses and upstream diversions. The Hei River terminates in inland lakes further north in Inner Mongolia (the Juyuan Lakes).

118. The river through Jiuquan is currently flanked by dikes on both sides. The width between the dikes varies from approximately 1,200 m at the upstream end of the project reach to just under 200 m in the middle section nearest to the center of the town. The height of the dikes also varies, but they are generally between 2 m and 4 m. Under current conditions the river is a braided stream finding its way through the bed sediments and meandering between the dikes. The flow paths are dynamic, shifting in response to fluctuations in flow and sediment delivery. In most years peak flood flows do not extend from bank to bank (or dike to dike). There is considerable activity excavating and carting the coarse alluvium from the river bed in Jiuquan for use as construction material. Figure IV.1 shows a dry Beida River during site visit in April 2012.

Figure IV.1: The dry Beida River in April 2012

119. Hydrological stations operate on the Beida River upstream at Jiayuguan and Bingguo. The station at Bingguo operated for over 50 years (1948-2004) before being relocated to Jiayugaun when the hydropower dam was constructed. Based on data from these stations the mean annual flow is 640 million m3. This is equivalent to runoff of approximately 85 mm per

annum, a surprisingly high percentage of annual precipitation. Presumably this derives largely from glacier and snowmelt in the alpine areas where evaporation losses would be depressed and precipitation is higher than on the plains. The river therefore is a most precious resource in an arid environment. 56% of annual runoff occurs in the four months from June to September. The river freezes in the winter.

120. A large diversion weir is located at Jiayuguan, constructed in 2002 – however diversions also took place prior to commissioning of the current structure. The hydrological station is immediately upstream of the weir on the left bank. Off-takes from the weir occur on both sides of the river, each with design capacity of 20 m3/s, although actual maximum rates of diversion are now lower in practice. The left bank diversion channel supplies the Jiayuguan urban area, including urban lakes, but the primary purpose is irrigation supply. The main outfall returns flow to the river in Jiuquan, and just before the outfall there is an industrial zone on the left bank. The left bank diversion channel is used at certain times of the year to deliver water downstream to Yuanyang Reservoir, bypassing the reach of the river immediately downstream of Jiayuguan to minimize transmission losses. The right bank diversion is more exclusively for irrigation. There is no return outfall directly to the Beida River, but there may be limited return flow from the irrigation areas reaching the Hongshui to the south, which is a tributary to the Beida downstream of Jiuquan.

121. The diversions at Jiayuguan have dramatically changed the hydrological regime of the Beida River downstream. Diversions do not occur during winter, but at many other times of the year the structure is capable of diverting the full flow of the river. The reach between Jiayuguan and Jiuquan is therefore deprived of flow from March to November, except when river flows exceed the diversion capacity. Mean monthly flows exceed the actual diversion capacity in only two months July and August, and typically flows may exceed the diversion capacity intermittently in two other months of June and September. The situation is not as bad downstream of the return outfall from the northern diversion channel, since the diversion channel is used to deliver water to Yuanyang Reservoir on a rostered schedule. Based on that schedule and hydrological flow data the lower river channel would be deprived of flow for a total of about three months each year on average, and for continuous periods up to about two months in some years.

122. The estimated flood of 2% (1 in 50 years) annual exceedance probability at Jiayuguan is 1,120 m3/s, while a flood of 20% (1 in 5 years) annual exceedance probability is estimated to be 240 m3/s. The largest historical flood occurred in 1937 with an estimated peak discharge of 1,420 m3/s.

123. Groundwater is continually replenished by precipitation and snow melting in the mountain ranges submerging into the river valleys, predominantly flowing from the south to the north following the topography of the land. The depth of groundwater also follows land topography, deep in the south and shallow in the north. In the vicinity of Jiuquan, groundwater depth ranges

from 5 to 20 m. Groundwater depth in the urban area of Jiuquan ranges from 3 to 5 m, with hydraulic gradients ranging from 1/1000 to 1/1500.

124. Surface Water Quality. The PRC‘s Environmental Quality Standard for Surface Water (GB 3838-2002) defines five water quality Categories for different environmental functions. The section of the Beida River in the project area has been assigned as a Category III water body. Table IV.2 shows the results of routine surface water quality monitoring undertaken every two months in 2011 by the Jiuquan Environmental Monitoring Station12 at two locations on the Beida River. Results show compliance with Category III surface water quality standards on the days of monitoring based on the parameters tested.

125. Ground Water Quality. Similar to surface water, groundwater in the PRC is classified into 5 Categories (I to V, I being the best and V best the worst) with ground water quality standards for each category specified in Quality Standard for Ground Water (GB/T 14849-93). Groundwater meeting the standards for Category III or better is deemed to be suitable for use as drinking water source. Groundwater originating from precipitation and snow melt in the Qilian Mountain range to the south is the major drinking water resource for Jiuquan and is assigned to meet Category III standards. The Suzhou District has established two ground water monitoring stations at the Jiuquan‘s No. 2 Water Treatment Plant (WTP) and No. 3 WTP. Results of routine groundwater monitoring by the Jiuquan Environmental Monitoring Station at the No. 2 and No. 3 WTP from March 3, 2011 are presented in Table IV.3 as an indication of the groundwater quality in Jiuquan. Results show that the parameters monitored on March 3, 2011 at both locations complied with Category III standards in GB/T 14849-93 and thus suitable for use as drinking water.

12 Environmental Monitoring Station in the PRC is generally a department within EPB with the responsibility and authority to undertake routine and compliance environmental monitoring. 54

Table IV.2: Beida River surface water quality monitoring results in 2011 Beida River Bridge Location Rural Farm Location GB 3838-2002 Parameters Monitored Category III JAN MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOV Standards Temperature (o C) 0 4 17 15.5 18 ND 0 3 20 19.5 19 3 No standard Water flow (m3/s) ND 5.6 5.6 6.2 6.2 ND ND 5 5 5.3 5.3 ND No standard pH 8.1 8.13 8.19 8.5 8.23 ND 8.0 8.45 8.23 7.9 8.18 7.89 6 ~ 9 DO (mg/l) 5.61 7.5 5.51 6.93 7.4 ND 5.79 6.1 5.1 6.55 7.8 5.01 ≥ 5 Permanganate (mg/l) 2.19 0.73 1.82 2.09 2.66 ND 2.18 3.1 1.71 2.07 3.25 2.02 ≤ 6

BOD5 (mg/l) 3.8 2.1 2.9 0.9 0.7 ND 4.0 2.6 <2.0 2.5 3.0 2.30 ≤ 4

CODCr (mg/l) 17.8 7.4 <5 10.8 10.9 ND 17.8 5.6 <5 14.0 8.7 <5 ≤ 20

NH3-N (mg/l) 0.829 0.046 0.043 0.626 0.286 ND 0.66 0.057 0.065 0.86 0.943 0.486 ≤ 1.0 TN (mg/l) 0.888 0.16 0.837 0.933 0.765 ND 0.981 0.78 0.875 0.982 0.884 0.883 ≤ 1.0 TP (mg/l) 0.199 0.09 0.153 0.126 0.084 ND 0.017 0.07 0.063 0.043 0.036 ND ≤ 0.2 Petroleum hydrocarbon (mg/l) 0.01 0.032 0.028 0.04 0.032 ND 0.023 0.044 0.036 0.043 0.038 0.032 ≤ 0.05 Volatile phenols (mg/l) 0.003 <0.002 <0.002 <0.0003 <0.0003 ND 0.002 <0.002 <0.002 <0.0003 <0.0003 0.002 ≤ 0.005 Fluoride (mg/l) 0.162 0.233 0.112 0.296 0.300 ND 0.215 0.242 0.288 0.388 0.350 0.415 ≤ 1.0 Cyanide (mg/l) <0.004 <0.004 <0.004 <0.004 <0.004 ND <0.004 <0.004 <0.004 <0.004 <0.004 ND ≤ 0.2 Sulfate (mg/l) 0.005 0.039 0.066 0.131 <0.005 ND <0.005 <0.005 0.014 0.156 <0.005 ND ≤ 0.2 Anionic surfactant [=LAS] 0.122 0.156 0.056 ND 0.139 0.142 0.058 0.152 0.113 0.126 0.139 0.078 ≤ 0.2 (mg/l) Hg (mg/l) 0.00004 0.00002 0.00002 0.00002 <0.00001 ND 0.00003 0.00002 0.00002 0.00002 <0.00001 0.00004 ≤ 0.0001 Pb (mg/l) <0.001 <0.001 <0.001 <0.001 <0.001 ND <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 ≤ 0.05 Cu (mg/l) <0.001 <0.001 0.0034 <0.001 <0.001 ND <0.001 <0.001 0.0045 <0.001 <0.001 <0.001 ≤ 1.0 Zn (mg/l) 0.03 <0.02 <0.02 <0.05 <0.05 ND <0.02 <0.02 <0.02 <0.05 <0.05 0.022 ≤ 1.0 Se (mg/l) <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 ND <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 ≤ 0.01 As (mg/l) <0.0005 <0.0005 0.0008 <0.0005 <0.0005 ND <0.0005 <0.0005 0.0008 <0.0005 <0.0005 <0.0005 ≤ 0.05 Cd (mg/l) <0.0001 0.00015 <0.0001 <0.0001 <0.0001 ND <0.0001 0.00015 <0.0001 <0.0001 <0.0001 <0.0001 ≤ 0.005 Cr6+ (mg/l) 0.010 0.024 0.017 0.007 <0.004 ND 0.008 0.019 0.011 0.007 <0.004 <0.004 ≤ 0.05 Fecal coliform bacteria 90 20 0 ND 120 20 0 0 8,000 0 8,000 0 ≤ 10,000 (counts/l) Note: ND = no data

Table IV.3: Groundwater quality monitoring results in March 2011 GB/T 14849-93 Parameters Monitored No. 2 WTP No. 3 WTP Category III Standards pH 8.13 8.15 6.5 ~ 8.5 Total hardness (as CaCO3) (mg/l) 290 348 ≤ 450 Sulfate (mg/l) 108 166 ≤ 250 Chloride (mg/l) 27 38 ≤ 250 Fe (mg/l) <0.03 0.07 ≤ 0.3 Mn (mg/l) <0.01 <0.01 ≤ 0.1 Cu (mg/l) <0.001 <0.001 ≤ 1.0 Zn (mg/l) <0.02 0.46 ≤ 1.0 Volatile phenols (as phenol) (mg/l) <0.002 <0.002 ≤ 0.002 Anionic surfactant [=LAS] (mg/l) 0.08 0.07 ≤ 0.3 Permanganate (mg/l) <0.50 0.57 ≤ 3.0 Nitrate (as N) (mg/l) 4.21 2.86 ≤ 20 Nitrite (as N) (mg/l) <0.005 <0.005 ≤ 0.02

NH3-N (mg/l) 0.026 <0.025 ≤ 0.2 Fluoride (mg/l) 0.146 0.148 ≤ 1.0 Cyanide (mg/l) <0.004 <0.004 ≤ 0.2 Hg (mg/l) 0.000013 0.000010 ≤ 0.001 As (mg/l) <0.0005 <0.0005 ≤ 0.05 Se (mg/l) <0.0005 <0.0005 ≤ 0.01 Cd (mg/l) <0.0001 <0.0001 ≤ 0.01 Cr6+ (mg/l) <0.004 <0.004 ≤ 0.05 Pb (mg/l) <0.01 <0.01 ≤ 0.05 Total coliform bacteria (counts/l) 0 0 ≤ 3.0

126. Air Quality. The PRC ranks air quality into 3 classes according to its Ambient Air Quality Standard (GB 3095-1996), with Class I being the best air quality and Class III the worst air quality. According to the 2011 Jiuquan Environmental Quality Report published by the Jiuquan EPB, air quality in the Suzhou District of Jiuquan in 2011 complied with the Class II air quality standard, with the main air pollutant being PM10. Typically, ambient air quality baseline monitoring for environmental impact assessment in the PRC consists of measuring the daily average concentration levels of total suspended particulates (TSP) and/or PM10 (also known as respirable suspended particulates, RSP), sulfur dioxide

(SO2) and nitrogen dioxide (NO2) on seven consecutive days. The EIR presented ambient air quality monitoring data on SO2, NO2 and PM10 collected by the Jiuquan Environmental Monitoring Station daily from January 1 to January 31, 2011 at 2 routine monitoring locations in the urban area of Jiuquan (Suzhou District). Such data are summarized in Table IV.4 below, in comparison with the city-wide average and with the GB 3095-1996 Class II ambient air quality standard, showing compliance with Class II standards on these parameters on the days of monitoring.

Table IV.4: Ambient air quality monitoring results showing daily average concentrations SO (mg/m3) NO (mg/m3) PM (mg/m3) Data from 2 2 10 Cangmen Fukangjia Cangmen Fukangjia Cangmen Fukangjia January City-wide City-wide City-wide Street Shijie Street Shijie Street Shijie 2011 Average Average Average Location Location Location Location Location Location Minimum 0.008 0.027 0.019 0.010 0.012 0.013 0.057 0.048 0.053 Maximum 0.068 0.058 0.062 0.023 0.024 0.022 0.089 0.088 0.084 Mean 0.049 0.042 0.046 0.016 0.017 0.017 0.072 0.069 0.070 GB 3095-1996 0.15 0.08 0.15 Class II Standard

127. Noise. Noise standards in the PRC are prescribed in Environmental Quality Standard for Noise (GB 3096-2008). GB 3096-2008 grades 5 functional regions based on their tolerance to noise pollution: from Grade 0 to Grade 4. Grade 0 is for regions with health recovery facilities that are the least tolerant to noisy environment and therefore has the most stringent day and night time noise standards. Grade 1 is for regions predominated by residential areas, hospitals and clinics, educational institutions and research centers. Grade 2 is for regions with mixed residential and commercial functions. Grade 3 is for regions with industrial production and storage and logistics functions. Grade 4 is for regions adjacent to traffic noise sources such as major roads and highways, and is sub-divided into 4a and 4b with the former applicable to road and marine traffic noise and the latter applicable to rail noise. The EIR presented noise monitoring data conducted by the Jiuquan Environmental Monitoring Station in 2011 in various noise functional regions within Jiuquan‘s urban area, shown in Table IV.5 below. Except for one incidence of night time noise exceedance, results show compliance with the day time and night time noise standards for the monitoring locations‘ respective functional regions.

Table IV.5: Noise monitoring results in 2011

Noise Day Time Noise [LAeq in dB(A)] Night Time Noise [LAeq in dB(A)] Noise Monitoring Functional GB GB Location FEB MAY AUG NOV FEB MAY AUG NOV Region 3096-2008 3096-2008 Vehicle Repair 35.5 53.3 39.0 34.8 28.9 30.2 42.9 31.4 Factory Dormitory Grade 1 55 45 Guangxiajiayuan 39.3 33.5 34.0 43.4 43.0 30.6 31.4 30.1 Community Hangtang Hotel 51.9 40.6 43.2 32.8 26.5 39.7 38.9 31.4 Grade 2 60 50 Shijihubei 38.9 51.6 37.2 41.4 27.7 49.6 38.4 27.5 Haoniu Dairy 40.7 49.6 48.0 36.8 44.7 37.9 31.1 35.5 Factory Grade 3 65 55 Dadeli 28.8 33.7 34.6 30.5 26.1 31.0 56.1 30.3 Pharmaceutical Xiguan #1 Vehicle 56.9 59.5 53.8 48.6 46.9 44.1 33.6 28.9 Fleet Grade 4 New Town 70 55 Chinese Medicine 39.2 35.2 57.7 46.6 40.4 31.0 43.1 35.5 Hospital Note: means exceedance of the relevant standard

C. Biological Resources, Ecology and Biodiversity

128. According to the ecological regionalization of Gansu Province, there are 3 ecological zones, 20 ecological sub-zones and 67 ecological function zones. The project site is located in ecological function zones 41 (agricultural and anti-desertification zone), 43 (salinization sensitive agricultural zone of Jiuquan oasis) and 44 (Yunmen desertification and wind-erosion prevention zone). They all belong to the Hexi Corridor arid-desert/oasis-agricultural sub-zone of the Inner Mongolia arid-desert ecological zone. The objective and function (urban environment improvement) of the project is compatible with the ecological function of the region, which implies the project has no fundamental conflict with the local ecosystem.

129. Jiuquan, being an oasis in an arid landscape, has relatively high biodiversity. There are 280 plants species, belonging to 40 genera of 26 families, and 290 grass species, belonging to 148 genera of 43 families. There are 32 fauna species, belonging to 16 families of 11 orders of 2 classes. There are 20 bird species. Among these species, there are 47 in category I and II of the national wild species protection inventory, and 40 valuable medicinal flora species. However, there is no legally protected area, no priority site or important conservation site within the project footprint. Therefore, the impact of the engineering work on the regional ecosystem is minimal. The major threats to the local ecosystem include water scarcity, increasing agricultural pollution, vegetation degradation, hazardous weather (sand storms, hot-dry wind and hail).

130. Jiuquan is located in the west end of the Hexi corridor, which is characterized by dry climate, low precipitation and complex topography. Due to the harsh natural conditions, the flora is dominated by high-level species, with little low-level floras.

131. The project areas are characterized by urban ecological settings that have been influenced by human activities. The North Riverside Road project area is dominated by plantations of trees and herbaceous species with distributions of Poplar (Populus bolleana) and Willow (Salix matsudana) trees, and a few scattered fish ponds with low ecological value in the eastern section. The South Riverside Road and the western section of the Panxuan Road extension project areas are undeveloped wasteland with scarce vegetation dominated by alkaline herbaceous foliage such as Splendens (Achnatherum splendens), Nitraria tangutorum and Alhagi sparsifolia and no natural trees and forests. The eastern section of the Panxuan Road extension project area is dominated by agricultural land with plantations of Poplar trees.

132. Due to few and disturbed habitats in urban setting and harsh climate, the Jiudquan urban area has low biodiversity of wild animals dominated by reptiles such as the Toadhead Agama (Phrynoce phalus przewalskii), the Frog-eyed Gecko (Teratoscincus scincus), the Variegated racerunner (Eremias vermiculata) and the Slender Sand Snake (Psammophis lineolatus). The only amphibian is the Mongolian Toad (Bufo raddei). Birds common in the area include the Pallas's Sandgrouse (Syrrhaptes paradoxus) and the Horned Lark (Eremophilia alpestris).

133. Due to river regulation and diversions upstream, the section of the Beida River adjacent to the project areas has only seasonal flow and is dry some of the time. Because of this, it is difficult for phytoplankton, zooplankton, benthos and other aquatic plants and animals to survive in the river. Willow trees (Salix matsudana), the Euphrates Poplar trees (Populus euphratica) and the Common Reed (Phragmites australis) could be found growing in the river section between the Jiuhang Road and Jiuyin Road bridges (Figure IV.2).

Figure IV.2: Vegetation in the Beida River near the Jiuyin Bridge

134. The Jiuquan No. 2 WWTP site has thin vegetation dominated by herbaceous species with some agricultural land and Poplar (Populus bolleana) plantations adjacent to the western boundary. Figure IV.3 shows the present site condition.

Figure IV.3: Existing view of the Jiuquan No. 2 WWTP

135. There is no nature reserve, no area of conservation importance, and no record of rare, threatened or endangered species within the temporary and permanent land take areas in this project.

D. Socio-economic Conditions

136. Population. In 2011, the population of Jiuquan was 1.100 million while that of Suzhou District (Jiuquan urban area where this project is located) was 406,400. For the registered agricultural population, a certain proportion is engaged in non-agricultural work in the urban area. Most of the temporary floating population comes from nearby cities for work and business. The planning institute indicated that after 2009, the number of people moving in had noticeably increased, and people moving in vastly exceeded people moving out. Figure IV.4 shows population growth in the last 10 years in the Suzhou District. The big increase in 2009 was due to the relocation of about 30,000 Yumen oilfield workers and their families. In 2012 and 2013, about 15,000 workers of the satellite launching base and their families will be relocated here.

Figure IV.4: Population growth in the Suzhou District from 2001 to 2011

137. Economy and GDP. The size of Jiuquan‘s economy in Gansu is second only to Lanzhou. It abounds in reserves of clean energy (being a national first-class wind and solar resources area), mineral resources (tungsten, chromium, vanadium, asbestos, iron, gold, magnesium, and silicon), oil, and developable land. Jiuquan‘s key industries are renewable energy equipment manufacturing, agricultural product processing, and production of construction materials. Tourism is also increasingly contributing to the city‘s economy, as Jiuquan is famous as a key node of the Silk Road and for its launch site of the 60

national space program. The major employers are currently renewable energy manufacturers, pharmaceuticals, seed production and building materials. Emphasis for the future is placed on the manufacturing base for wind turbines and photo-voltaic panels. Jiuquan now has the potential to serve as a vital artery for the relatively less-developed northwestern region of the PRC, thus promoting regional economic integration among Central Asia Regional Economic Cooperation member countries.

138. Figure IV.5 shows GDP growth in the Suzhou District from 2001 to 2011. The importance of the tertiary industry dominated by tourism related services historically is clearly indicated in the figure. Rapid economic development was mainly driven by the manufacture of new energy equipment, which started in 2004. This resulted in substantial increase in the secondary industry‘s production since 2006, overtaking the tertiary industry‘s production in 2009. Total GDP in 2011 was CNY 15.246 billion. At present, wind energy equipment has reached a mature phase; in the future, the development will be more driven by solar energy equipment. It is estimated that the annual increase of GDP will be maintained at around 15% in the next few years.

Figure IV.5: GDP growth in the Suzhou District from 2001 to 2011

139. Water Supply. Water supply in Jiuquan‘s urban area is drawn mainly from groundwater and supplemented by surface water, as shown in Table IV.6. The total water supply capacity in the central urban area is 98,000 m3/d. All groundwater sources meet PRC‘s Quality Standard for Ground Water (GB/T 14849-93) Category II ground water quality standards and the Hongshui River, the only surface water source supplying water to the Longyuan WTP (see Table IV.6), meets Category III of PRC‘s Environmental Quality Standard for Surface Water (GB 3838-2002). All water treatment plants (WTPs) produce finished water meeting the PRC‘s Standards for Drinking Water Quality (GB 5749-2006). As of the end of 2010, the municipal water distribution system consisted of 128 km of DN75-600 mm piping,

providing water to 100% of the central urban area at an average water pressure of 0.28 MPa. Billed consumption indicates that non-revenue water amount to 11% of water produced.

Table IV.6: Water treatment plants in Jiuquan’s urban area

Capacity Volume Production Consumption Billed Footprint Population Service

(103 m3/d) (ha) (103)

Name of Completion Year Source Water Coverage Supply Water No. 1 WTP 10 8 7 4.8 1996 Groundwater Old Section of Central Urban Zone 54.3

No. 2 WTP 50 45 40 2.8 2003 Groundwater West of Jiefang Road 169.4

No. 3 WTP 12 10 9 2.1 2002 Groundwater South Industrial Zone 12

Western Suburb 10 9 8 2.7 2007 Groundwater West Industrial Zone 10 WTP

Longyuan WTP 10 8 7 0.4 2008 Hongshui River Area South of the Train Station 34.3

Subtotal 92 80 71 12.8 280

Mainly military use and other Other Water 6 6 6 - - Groundwater entities with individual water - Sources supplies

Total 98 86 77 Source: Jiuquan Municipal Construction Bureau

140. Wastewater Treatment. There is one existing 40,000 m3/d WWTP, the Jiuquan WWTP, located at the 3.5 km mark of Jiu-Jin Highway in Suzhou District, utilizing an activated sludge treatment process. The Jiuquan WWTP was first built in 1983, providing primary treatment at a design capacity of 8,000 m3/d. In June 2001, Gansu Province approved an upgrade to the system, which included a 40,000 m3/d secondary treatment plant and the addition of 41.8 km of sewer pipe to the collection system. The new system was completed in October 2005 and began operation in July 2006, mainly treating municipal and industrial wastewater from the Yangcheng District and the New Town District.

141. Due to various design flaws and influent wastewater quality that exceeded design limits, in particular BOD and COD levels that were higher than anticipated, the WWTP had problems meeting treatment standards. In response, the Jiuquan Municipal Water Supply and Wastewater Company issued an effluent water quality report for Jiuquan WWTP in March 2007, and held a project evaluation meeting in December of the same year. Experts were invited to conduct site visits and evaluate plant process and performance. The final recommendations were to convert the activated sludge process to the A2/O process, modify the then biological aerated filter (BAF) process, install a mechanical dewatering system to treat the sludge, and send the dewatered sludge to a sanitary landfill for disposal. Construction of the WWTP upgrades commenced in June 2009 and entered the testing period in July 2010. In November 2010, the WWTP passed the provincial EPB‘s acceptance check, meeting Class 1B standards of PRC‘s Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB 62

18918-2002).

142. The service area of the Jiuquan WWTP is bounded on the east by the bus company‘s Eastern Suburb parking lot; on the south by the South Industrial Zone; on the west by the Xifeng Township Government; and on the north by the Beiguan Parking Lot on Jiu-Yin Road. The plant currently operates at full capacity and is running well. As of the end of 2010, there were 112 km of combined sewers ranging from DN200 to DN1000 mm in diameter, and 5 km of separate storm sewers with a diameter of DN800 mm. Reinforced concrete pipe is used for all municipal sewers in the city. The planning and construction of sewers within industrial parks, however, are the responsibility of each park‘s management committee. Here, the wastewater is either discharged into nearby waterways or to low-lying areas, where the wastewater either evaporates or infiltrates into the ground. The wastewater in these areas is not collected for treatment in the municipal WWTP. Intervention from this project will provide treatment to industrial wastewater.

143. Solid Waste Disposal. The Suzhou District operates one municipal solid waste (MSW) sanitary landfill located in the Gobi Desert approximately 22 km northeast of the urban area and 4 refuse transfer stations for the collection and disposal of MSW in the Suzhou District. The sanitary landfill, with a design capacity of 250 t/d and a life span of 10 years, started construction in June 2006 and started operation in July 2008. Presently it is taking in approximately 288 t/d of MSW.

144. The Suzhou District also operates a medical waste treatment center with a design capacity of 3 t/d and a life span of 15 years for the collection and treatment of medical waste from the Suzhou District, the Jinta County and the Yumen County. The center is located in the Gobi Desert approximately 18.5 km northeast of the urban area near the sanitary landfill. It adopts a high temperature high pressure sterilization process. Construction started in July 2009 and operation commenced in November 2010. So far, the center has treated 75 t of medical waste from 6 hospitals.

145. Heating. Currently in Jiuquan there are 68 heating service enterprises, 79 heating boiler rooms, 25 heat transfer stations, 155 heating boilers, with a total installed capacity of 1,341 t. The total area of heating coverage is 8.4 million m2 with a centralized heating rate of 76.8%, annual consumption of 260,000 t of coal, annual power consumption of 39.36 million kWh, and annual water consumption of 98,000 t.

146. Electricity. Jiuquan Municipality has 4 thermal power plants and 27 small hydropower stations with a total installed capacity of 292 MW generating 2 GW of electricity in a year. The electricity joins the northwestern power grid via the Yongjia 300 KV transmission system, supplying electricity to the northwestern part of the PRC. Jiuquan Municipality also has a wind power base in Yumen City, which started construction in 2008 and has since developed 5 large scale wind farms with installed capacity of 410 MW.

147. Transport and Transportation. Jiuquan Municipality had 13,291 km of public roads at the end of 2010 of which 332 km were expressways. The urban area is serviced by approximately 70 roads and

streets totaling 82.5 km. National Highway G312 is the only road connecting the urban area of Jiuquan with Jiayuguan.

148. Vehicle population is growing fast in recent years, reaching 85,963 registered motor vehicles at the end of 2011 in Suzhou District, of which 68% are privately owned vehicles. The motorcycles account for 30% of the total vehicle population. There are currently 174 buses and 800 taxis in operation. The annual growth rate of motor-vehicles is 17%.

149. Jiuquan‘s urban area has a reasonable bus transport system for its size. There are 23 bus routes serving the urban area. In 2011, the bus passenger ridership reached 25 million, with a daily average ridership of 68,500. The annual revenue was CNY 28 million, with 14.3 million of total annual vehicle-km of bus services. In recent years, the annual bus passenger ridership has been increasing steadily. Since 2006 the average annual growth rate has been 12%. The Jiuquan Public Transport Company Limited, under the Gansu Guanghe Public Transport Cooperation, is the only bus company providing urban services in Jiuquan. It operates a total length of 330 km within the city. It reports to Jiuquan Municipal Transport Bureau, who is responsible for the routes and network planning on a regular basis.

150. Traffic Accidents. Based on the Traffic Police statistics, the road safety situation is alarming in comparison with other developed cities of the country. Table IV.7 below presents traffic accident data in the whole municipality. Inappropriate drivers‘ behavior, lack of law enforcement and poor traffic management, in combination with deteriorating road and vehicle conditions, contribute to the serious road safety problems.

Table IV.7: Traffic accident statistics in 2008 – 2011 Accident Type & Accident Number Direct Capital Loss Period Damaged Injured Fatal (CNY) 2008 194 253 80 496,381 2009 182 247 78 271,268 2010 161 186 76 325,495 2011 (1 Jan – 31 Mar) 21 26 8 34,253 Source: Jiuquan Traffic Police

151. Of the traffic accidents from 2005 to 2010, 94% were caused by vehicle users with approximately one-third involving motor cycles and one-fourth involving cars. Approximately 73% of road traffic accidents occurred on Class 2, Class 3, and Class 4 roads. Major accidents were reported on the intra-urban routes, such as G312, G215, S214, S314, Guazhou Road and Yuliu Highway in Jiuquan.

152. The official fatality rate in Suzhou District of Jiuquan in 2011 was reported as 4.5/10,000 MV. Table IV.8 compares traffic fatality rate in Suzhou District with the national average and the United States. Inadequate investment in the transport infrastructure and capacity in the management and enforcement traffic in Jiuquan have contributed to the higher than average fatality rate in comparison with the national average. 64

Table IV.8: Comparison of traffic fatalities rates Fatality Rate Suzhou District 2011 PRC 2009 USA 2009 Fatalities/10,000 motor vehicles 4.5 3.6 1.2

153. Inadequate traffic management measures and road safety awareness contribute to congestion and traffic accidents in town. Poor traffic signs and marking mislead drivers on the roads and may cause avoidable accidents, in particular on national and provincial highways. Traffic management measures in terms of optimizing traffic circulation, improving junction capacity and pedestrian crossing facilities and organizing on-street parking in the central urban area would improve the road safety in Jiuquan.

154. Industrial Zones. Jiuquan has three industrial zones in its urban area. The South Industrial Zone is located in a new development area in the southern part of the urban area with an area of 37 km2. Main industries include agricultural and animal husbandry products processing, green food manufacturing, seed production, dairy farming products manufacturing, and pharmaceuticals. The West Industrial Zone, with an area of 22 km2, is located in the western part of Jiuquan‘s urban area, north of the Beida River and south of National Highway G312. Main industries include wind energy equipment manufacturing, motor vehicle sale, construction materials manufacturing and agricultural by-product storage. Both industrial zones do not have centralized wastewater treatment system. Wastewater is treated by individual industries then directly discharged into the nearby Gobi Desert for dissipation through seepage and natural evaporation. The East Suburban Industrial Zone is located to the immediate east of the Old Urban Zone with an area of 5 km2 occupied by construction material processing enterprises. Wastewater is discharged to public sewer. Intervention from this project will provide collection and treatment of industrial wastewater.

E. Physical Cultural Resources

155. Jiuquan‘s tourism industry relies on its abundance of physical cultural resources. The Great Wall in Jiayuguan represents the western end of the section of the Great Wall built in the Ming Dynasty. The Mogao Caves in Dunhuang City, about 400 km to the west of the Jiuquan urban area, is a UNESCO World Heritage site. The Jiuquan Cultural Heritage Bureau has reviewed the status of cultural heritage within the project areas and concluded that no built heritage existed within the project areas. Should buried artifacts of archaeological significance be uncovered during the construction stage within the project areas, construction will be stopped and immediately reported to the Bureau in accordance with PRC‘s Cultural Heritage Protection Law.

F. Greenhouse Gas Emissions

156. The Gansu Provincial Meteorology Bureau predicted the trend of increasing temperature (0.68 o C – 0.95 o C) and precipitation (0.82% - 7.63%) in the next 50 years due to climate change and provided the following evidence on climate change happening in the province: 65

(i) Annual average temperature has increased 1.1o C in the last 50 years, which is greater than the national average;

(ii) Annual average precipitation has decreased by 5.7 mm per decade, greater than the national average of 2.9 mm per decade;

(iii) Increase in the frequency and intensity of extreme weather events, with weather related disasters accounted for 88.5% of natural disasters, higher than the national average of 18.5%.

157. To combat climate change and reduce greenhouse gas (GHG) emissions through energy conservation and reductions in pollutant emissions has been high on the agenda of Gansu provincial and municipal governments. In the 11th five-year period, Jiuquan met the binding target of 20% reduction in energy consumption per CNY 10,000 GDP. In 2009 the Gansu Provincial Meteorology Bureau issued a Climate Change Response Plan. In 2011, the Gansu Province prepared a 12th Five-year Special Plan for Responding to Climate Change. Both plans emphasized the high priority of reducing GHG emissions through energy conservation and reductions in pollutant emissions. In July 2011, the Gansu Province established a leading group to address climate change and reductions in energy consumption and pollutant emission in the province, with the setting up of a Climate Change Response Center in Lanzhou.

158. The development of wind farms in Yumen City will have substantial benefits to reducing GHG emissions from power generation. This wind farm project, which started in 2008 and is ongoing in different phases, will have an installed capacity of 10,000 MW at completion in 2015. Assuming full load power generation of 2,300 hours, electricity generation will amount to 23 x 109 KWh. This equates to an annual reduction in coal usage of 9.2 million t and CO2 emissions of 16 million t comparing to same power generation from coal-fired power stations.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Positive Impacts and Environmental Benefits

159. Beneficiaries. Some 300,000 residents will benefit both directly and indirectly from the project. Indirect benefits will arise from the boost that improved infrastructure will give to economic development in general. This economic growth will create new jobs that will be particularly beneficial to the poor. The direct benefits will be a significantly improved urban living environment—that is, one that is cleaner, healthier, more pleasant and easier to move around. It is anticipated that the Project will create at least 6,100 temporary project construction jobs, around 620 days of unskilled work planting trees, and a number of additional permanent road sanitation jobs. Residents are also hopeful that the new road development will provide the opportunity for establishing small businesses along the riverside roads. The Project will also maximize the benefits of improved infrastructure by encouraging behavioral change with respect to water conservation and road safety, and endeavor to facilitate the Pricing Bureau‘s public consultation over tariff setting. There may also be some minor health benefits from the windbreaks and improved wastewater disposal.

160. Roads and Bridges. The project will support the construction of urban roads and bridges, thereby forming a road network to fulfill the intra-zonal trunk road functions for new urban development areas, relieving through traffic loading in the existing road network, improving access to main industrial employment areas, and expanding farms to market roads for neighboring rural areas. Urban services will also be improved by providing new municipal utility services mains along the roads. In the long term, these roads especially the Panxuan Road extension will facilitate the integration between Jiuquan and Jiayuguan. The function of Panxuan Road including the new Xiyi Bridge is a major link connecting the West Industrial Zone, the Jiuquan Old Urban Zone and the Jiu-Jia New Urban Zone. It will also carry a large share of traffic between Jiuquan and Jiayuguan, alleviating congested traffic on the existing National Highway G312, currently aligned within the urban area. Reconstruction of the Jiuyin Bridge will put an end to restricted traffic movements due to inherent structural weakness thus improving connectivity to both sides of the Beida River.

161. Road Safety. Suzhou District has high traffic accident and fatality rates. The roads will be designed to separate motorized, non-motorized and pedestrian traffic; and to provide pedestrian crossing facilities. These will promote road safety.

162. Wastewater Collection and Treatment. The wastewater collection and treatment capacity of Jiuquan‘s urban area will be expanded to handle increasing wastewater volumes from developing areas including the South and West Industrial Zones, the Jiuquan-Jiayuguan New Urban Zone, the High-speed Rail Zone, and overflows from the existing Jiuquan WWTP from the Old Urban Zone. By 2020, wastewater treatment rate will be improved from the now 70% to 90%, benefiting a population of 459,000 compared to 185,000 now.

163. The wastewater will be treated to Class 1B standard, which will improve the water quality of Beida River compared to the present situation. Table V.1 shows the removal of pollutants from entering the Beida River each year by the Jiuquan No. 2 WWTP.

Table V.1: Pollutant load reductions per annum by the Jiuquan No. 2 WWTP Pollutant Load Wastewater Quality Pollutant Load Pollutant based on 60,000 m3/d Capacity Reduction Influent Effluent Influent Effluent COD 780 mg/l 60 mg/l 17,082 t/a 1,314 t/a 15,768 t/a

BOD5 324 mg/l 20 mg/l 7,096 t/a 438 t/a 6,658 t/a SS 372 mg/l 20 mg/l 8,147 t/a 438 t/a 7,709 t/a

NH3-N 63 mg/l 15 mg/l 1,380 t/a 329 t/a 1,051 t/a TN 75 mg/l 20 mg/l 1,643 t/a 438 t/a 1,205 t/a TP 10 mg/l 1.0 mg/l 219 t/a 22 t/a 197 t/a Source: Domestic EIR

164. The treated effluent from the WWTP will provide opportunities for re-use as power plant cooling water, thus reducing the demand on surface or ground water.

165. Windbreak Tree Plantations. Such plantations will reduce the speed of wind and intercept the sand in sandstorms, thereby reducing the surface damage caused by sandstorms. Vegetation (forests and grass) can also increase the surface roughness and reduce the speed of sand-carrying wind in the area. Based on information provided by the Jiuquan Forestry Bureau, an intact windbreak (forest shelterbelt) could reduce wind speed of up to 31 m/s outside the windbreak to 22 m/s within the windbreak protected area; at 2 m height the wind speed within the forest could be reduced by 30 – 50% from that outside the forest; and near the ground surface the wind speed could decrease by more than 70%. The wind erosion at the ground surface outside the forest is 5 cm; that within the forest is only 0.1 cm, a difference of 50 times. The area of crops affected outside the forests is 50%; that within the forests is only 5%.

166. GHG emissions. While total GHG emissions will increase in future as a result of urban expansion, population growth and traffic increase, the project will contribute to GHG emission reduction per GDP through (i) improved road conditions, and (ii) carbon sequestriation. Improved road conditions and smoother traffic flows at higher speed would result in less carbon emissions per vehicle per mile travelled compared to congested roads with stop-and-go traffic. According to Bai, Eisinger and Niemeier 13 (2009) , CO2 emission factors for gasoline motor vehicles decrease from approximately 500 gm

CO2/mi to approximately 250 gm CO2/mi when the vehicle speed increases from 25 mph to 75 mph. Trees planted for windbreak will sequester carbon. The amount of carbon sequestered by plantation will depend on the types of trees planted, the tree density and biomass, size of the canopy, the age of the trees, etc. Johnson and Coburn (2010) 14 indicated that trees in forest plantations typically sequester carbon at a maximum rate between about age 10 and age 20–30. Although no data on carbon

13 Bai S., D. Eisinger and D. Niemeier. 2009. MOVES vs. EMFAC: a comparison of greenhouse gas emissions using Los Angeles County. Transportation Researh Board 2009 Annual Meeting. 15 pp. 14 Johnson I. and R Coburn. 2010. Trees for carbon sequestration. Primefact 981. 6 pp. 68

sequestration by windbreak tree plantations or in arid areas in northwestern PRC was found, studies in the United States indicated that urban tree plantations in Sacramento, Oakland and Chicago had carbon 15 storage capacities of 41, 40 and 52 t CO2 per ha respectively (McPherson 1998) . Approximately 60.5 ha of windbreak trees will be planted in this project. Using the IPCC‘s default value of 0.50 for carbon content in plants and based on the scope of windbreak tree plantations in this project, windbreak trees

would sequester approximately 2,700 t of CO2 per year. Based on the photosynthesis reaction equation,

fixing 2,700 t CO2 would release approximately 2,000 t of oxygen (O2), meeting the oxygen demand of 7,000 people for one year and contributing to better air quality. Energy conservation measures will be included in the design and operation of the No. 2 WWTP (see discussion in Section V.D.2), which will indirectly contribute to minimize GHG emissions from the WWTP.

B. Measures during Detailed Design and Pre-Construction Phase

167. Measures during detailed design. The following environmental measures will permanently become part of the infrastructure and need to be included in the detailed design of facilities by the design institutes:

(i) Technical design of roads must ensure public health and safety, promote non-motorized traffic, and ensure barrier-free design for disabled people.

(ii) Technical design of the road drainage system must be adequate to prevent the roads from being flooded, and must take into consideration potential extreme weather events due to climate change, such as more frequent and intense torrential rains;

(iii) Technical design of the WWTP must achieve the desired treatment to meet Class 1B standard and safety of plant operation, with dual power supply to avoid interruption to plant operation due to power failure;

(iv) Technical design of the WWTP must include temporary sludge drying beds to produce sludge with water content of lower than 60%. The system must include a leachate collection and recirculation system;

(v) Technical design of the WWTP must be able to contain the operational noises from pumps, blowers and other noisy equipment with proper acoustic design of these facilities;

(vi) Technical design of the boilers in the WWTP must include flue gas desulfurization and electrostatic precipitator to ensure complying with relevant emission standard;

(vii) The design and construction of the wastewater collection pipelines must be adequate to prevent pipe burst;

(viii) Technical design of the windbreak tree plantations must ensure that only native, non-invasive

15 McPherson G. 1998. Atmospheric carbon dioxide reduction by Sacramento‘s urban forest. Journal of Aboriculture 24(4): 215-223. 69

species are used; the technical design of irrigation system must minimize water consumption and avoid the use of water from the municipal water supply system.

168. Measures during pre-construction. A number of environmental management measures will be implemented in the pre-construction phase to ensure project‘s environment management readiness. These include:

(i) Institutional strengthening, including (a) appointment of qualified environment specialists within the JPMO; (b) appointment of one environment specialist within the IA; (c) hiring of loan implementation environment consultants (LIEC) within loan administration consultant services by the JPMO; and (d) contracting of environmental monitoring station by the IA to conduct environment impact monitoring;

(ii) Updating EMP: Mitigation measures defined in this EMP will be updated based on final technical design. This will be the responsibility of the JPMO, using the LDIs;

(iii) Land-take confirmation: The Resettlement Plan will be updated with final inventory. This will be the responsibility of the IA, using the LDIs.

(iv) Contract documents: Include EMP obligations in tender documents, referencing the EMP and monitoring plan. This will be the responsibility of the LDIs, with support of JPMO and the LIEC;

(v) Environmental Protection Training: Environmental specialists and/or officials from the Jiuquan EPB will be invited to provide training on implementation and supervision of environmental mitigation measures to contractors. This will be the responsibility of the JPMO, with support of the LIEC;

C. Impacts and Mitigation Measures during the Construction Stage

169. Impact screening. Potential impacts during the construction of the roads and bridges, the WWTP and the wastewater collection pipelines will include air quality, noise, water quality, solid waste and occupational health and safety. Potential air quality impact could occur due to fugitive dust generated on the construction site from stockpiles of uncovered earth materials and vehicles travelling on unpaved haul roads; as well as fumes from asphalt mixing plant. The use of powered mechanical equipment during construction activities will generate noise. Construction activities will generate process wastewater and construction workers will produce wastewater. Construction works will produce construction and demolition (C&D) wastes including excavated earth materials. Workers will face occupational health and safety issues working on construction sites, such as during road paving when workers are near the asphalt mixing plant and exposed to fumes from the plant. These potential impacts are assessed and addressed below.

1. Impact on Physical Resources

170. Air Quality. Fugitive emission of dust during earth works and fumes from asphalt mixing and concrete batching are the main air pollutants during the construction stage. Impact during the construction of the WWTP is expected to be minimal since the nearest sensitive receptor is 500 m and upwind of the predominant wind direction from the WWTP site. The wastewater collection pipelines are trunk sewers with no connection close to households except for a section along an existing road near the existing train station where there are 14 households along the road ranging from 10-40 m from the wastewater pipeline alignment. Pipelines are installed by sections in a linear fashion. When one section is installed, construction activities move on. Sensitive receptors along the pipeline route (see Table II.3) would therefore be exposed to short durations of impacts, most likely from a few weeks to a few months. The FSR estimated that the duration for constructing this section of wastewater pipeline by open and cut would be approximately 3 months. Potential dust impact is therefore of short term duration. Focus will be put on environmental mitigation and management measures on the construction site in the EMP to reduce impact to sensitive receptors.

171. The 10 existing sensitive receptors near the alignments of North Riverside Road, Panxuan Road extension and the Jiuyin Bridge identified in the EIR could be subject to air quality impact during the construction of roads and bridges (see Table II.3 and Figure II.3). There is no existing sensitive receptor along the South Riverside Road alignments.

172. Dust (or TSP) would be emitted during earthworks. The EIR predicted an impact distance of approximately 200 m downwind of earth work activities without mitigation. With mitigation measures such as frequent watering of unpaved areas and haul roads (7-8 times each day), the EIR estimated that the amount of dust could be reduced by 70% or more and the impact area would be reduced to within 100 m downwind of earth work activities. The EIR has identified 3 air quality sensitive receptors located within 100 m of the Panxuan Road extension (the Xifengsi Village and the Guanbeigou Village north of Panxuan Road extension and the Jiuyin Bridge (the Northern Suburban Park) (see Table II.3 and Figure II.3) that could potentially be affected by fugitive emission of dust during the construction of the Panxuan Road extension and the Jiuyin Bridge when activities are within 100 m upwind of these locations. When construction works on the Panxuan Road extension and the Jiuyin Bridge are more than 100 m upwind of these locations, they will not be affected. Construction dust impact to these 3 receptors is therefore of short duration despite a construction period of 34 months for the road component. There are also 3 sensitive receptors along the North Riverside Road (Christian Church, Zhaojia Watermill and Hengyun Agricultural Materials Production Co.) and one sensitive receptor (Guanbeigou Village) south of the Panxuan Road extension that are at 100 m from the alignments. These are unlikely to be affected except if dust suppression measures are not properly implemented.

173. The following mitigation measures to suppress dust on construction sites, including frequent watering of unpaved areas, backfill areas and haul roads described above, will be adopted:

(i) Water unpaved areas, backfill areas and haul roads 7-8 times each day; 71

(ii) Erect hoarding around dusty activities;

(iii) Strengthen the management of stockpile areas with frequent watering or covering with tarpaulin;

(iv) Minimize the storage time of construction and demolition wastes on site by regularly removing them off site;

(v) Do not overload trucks for transporting earth materials to avoid spilling dusty materials onto public roads;

(vi) Equip trucks for transporting earth materials with covers or tarpaulin to cover up the earthy materials during transport;

(vii) Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads;

(viii) Immediately cleanup all muddy or dusty materials on public roads outside the exits of the works areas;

(ix) Sensibly plan the transport routes and time to avoid busy traffic and heavily populated areas when transporting earthy materials;

(x) Immediately plan vegetation in all temporary land take areas upon completion of construction to prevent dust and soil erosion.

174. Asphalt mixing on site for paving the road surface will produce fumes containing small quantities of toxic and hazardous chemicals such as volatile organic compounds (VOC) and poly-aromatic hydrocarbons (PAH). Concrete batching for bridge structures will produce dust. To mitigate such impacts, asphalt mixing and concrete batching plants will be enclosed and equipped with bag house filter or other suitable pollution control equipment for removal of particulates, and will be located at least 300 m upwind of the 10 sensitive receptors identified in Table II.3. Emissions of asphalt fume will comply with the standards stated under Item 31 (asphalt fume) in Table 1 of PRC‘s Air Pollutant Integrated Emission Standard (GB 16297-1996), which also specifies that obvious fugitive emission of asphalt fume is not permitted. Workers doing asphalt road paving will be provided with eye goggles and respiratory masks for occupational health protection (refer to Occupational Health and Safety section below).

175. Noise. Noise is emitted by powered mechanical equipment (PME) used during construction. Construction noise impact would mainly come from the construction of roads, bridges and wastewater pipeline, since there is no existing noise sensitive receptor within 500 m of the WWTP site. Potential noise impact during construction of the wastewater pipeline along an existing road near the existing train station with 14 households along the road at 10-40 m from the pipeline alignment would be of short duration, approximately 3 months, as described above.

176. Figure V.1 shows predictions in the EIR on construction noise attenuation during different

stages of road and bridge construction and distances of sensitive receptors from the noise source. Calculations were based on cumulative sound power levels of PMEs used in each stage of construction, which included earth works during site formation, road surfacing, bridge foundation and bridge structure. Applicable construction noise standards are 70 dB(A) for day time and 55 dB(A) for night time according to GB 12523-2011. The figure shows that bridge foundation construction will be most noisy due to piling works. Bridge construction will only affect one sensitive receptor, the Northern Suburban Park. People using the Park will be affected during bridge foundation and bridge structure works during the re-construction of the Jiuyin Bridge. During site formation and road surfacing works on the Panxuan Road extension, the Xifengsi Village and the Guanbeigou Village north of the alignment will be affected by construction noise levels of 74 dB(A) and higher. Sensitive receptors near the North Riverside Road alignment would not be affected during site formation and road surfacing works on the proposed road. Figure V-1 shows that all sensitive receptors would be exposed to > 55 dB(A) and therefore no night

time (2200 – 0600 hr) construction activities will be carried out.

Xifengsi

Village

igou Village #1 Village igou

Guanbeigou School Primary

Guanbe Chinese Dizhu Jiuquan Co. Pharmaceutical

Guanbeigou Village #2; Village Guanbeigou Church Christian Watermill Zhaojia Agricultural Hengyun Co. Production Materials

Day Time Noise Standard

Northern Suburban Park

Night Time Noise Standard

Figure V.1: Construction noise attenuation during the construction of roads and bridges

177. Construction noise will be mitigated by (i) using quiet equipment; (ii) adopting good O&M of machinery; (iv) using temporary hoardings or noise barriers to shield off noise sources; and (v) stopping

construction between 2200 and 0600 hours.

178. The Guanbeigou Primary School will be exposed to day time construction noise of approximately 65 dB(A) and higher when constructing the Panxuan Road extension. The contractors will maintain continual communication with the Guanbeigou Primary School to avoid noisy activities near the school during examination periods.

179. Water Quality. Uncontrolled wastewater and muddy runoff from construction sites could potentially pollute nearby water bodies such as the Beida River and the irrigation channels and clog up drains. The construction of the bridges may disrupt river hydrology through obstruction of peak flow and cause backup of water upstream. Piles will be drilled during construction of the bridge foundation, which could disturb the river sediment and increase suspended solid (SS) concentration in the river water body. It is unlikely that bridge construction will contribute to bank erosion or cause further excessive amounts of sediment to enter the water due to the concrete channel banks at the bridge locations. To prevent pollution of surface and groundwater, the following measures will be implemented:

(i) Portable toilets and small package WWTPs will be provided for the workers and canteens;

(ii) If there are nearby public sewers, interim storage tanks and pipelines will be installed to convey wastewater to those sewers;

(iii) Sedimentation tanks will be installed on-site to treat process water (e.g. concrete batching for bridge construction) and muddy runoff with high concentrations of suspended solids. If necessary, flocculants such as PAM will be used to facilitate sedimentation;

(iv) Construction of the bridge foundations will take place from October to June during the dry season (except from November to March when outdoor construction activities are stopped due to cold weather) when the Beida River is dry, thereby minimizing potential water quality impact. If needed, mitigation measures such as placement of sandbags or berms around foundation works areas to contain muddy water runoff will be adopted. Slurry from pile drilling in the river bed will be pumped to shore and properly disposed of. This will reduce the disturbance of sediments and the impact on water quality. Pier construction in the river will be planned and laid out to ensure adequate opening for water flow.

180. Solid Waste. Solid waste generated during construction will include construction and demolition (C&D) waste dominated by excavated spoil from wastewater pipeline works as well as site formation for the WWTP and roads and bridges (see below), and refuse generated by construction workers on construction sites. If not properly disposed, such wastes will create community health and sanitation problems. To minimize adverse impacts from the refuse generated by the workers and C&D waste, refuse will be stored in closed containers and regularly transported off-site for disposal at landfills. C&D wastes, including the old Jiuyin Bridge, will be cleared and removed regularly.

2. Impact on Soil, Biological Resources, Ecology and Biodiversity

181. Earthwork, soil erosion. Table V.2 shows the earth cut and backfill quantities generated in this project, indicating the need to import 1,654,299 m3 of backfill material. This will be obtained from the nearby man-made lake project on the south bank of the Beida River, which is near completion with earth materials stockpiled nearby for use in this project.

Table V.2: Balance of earth cut and earth fill Item Earth Cut (m3) Earth Fill (m3) Greening (m3) Balance (m3) North Riverside Road 149,800 (393,000) (101,200) (344,400) South Riverside Road 196,800 (411,000) (92,300) (306,500) Panxuan Road extension 75,100 (782,700) (67,000) (774,600) Windbreak tree plantations 399,200 (602,200) 0 (203,000) WWTP 0 (38,900) 0 (38,900) Wastewater pipelines NA NA 0 13,200 Total 820,900 (2,227,800) (260,500) (1,654,200)

182. To minimize soil erosion during construction, the following measures will be implemented by contractors:

(i) Avoid rainy season. If necessary, construct berms to direct rainwater away;

(ii) Pay close attention to the growth of vegetation cover on backfilled areas to prevent soil erosion;

(iii) Immediately restore, level and plant landscape on temporary occupied land upon completion of construction works.

183. Flora and fauna. This project will remove vegetation from approximately 23.40 ha of land temporarily and 59.83 ha of land permanently. Temporary land take will include areas for wastewater pipeline installation, temporary excavated spoil stockpile and staging construction works. These areas will be re-vegetated and landscaped after completion of construction works. Permanent land take will be used for roads, WWTP and windbreak tree plantations. These areas as described above are typified by urban ecological setting already influenced and disturbed by human activities, dominated by herbaceous species and plantations, and of low ecological value and biodiversity. The Beida River is a seasonal river that has no or trickling flow during the dry season and therefore does not sustain communities of aquatic flora and fauna. The EIR also indicates the absence of nature reserve and rare, threatened or endangered species within the construction footprint of the project. It has also been confirmed that the road alignments will not impinge on any fish pond. Ecological and biodiversity impact is expected to be minimal.

3. Impact on Socio-economic Resources

184. Land acquisition and resettlement. The siting of roads, wastewater collection pipelines and treatment plant, windbreak tree plantations and construction staging areas will either temporarily or 75

permanently take up land. Land that is to be taken up temporarily (350.76 mu = 23.38 ha) for installation of wastewater pipelines will be restored, although the restored landscape could be different from the present. Land that is to be taken up permanently (897.04 mu = 59.80 ha) for the roads, the wastewater treatment plant and the windbreak tree plantations will be unavailable to existing users and inhabitants in these areas. This is an irreversible impact. Existing properties and population on this land will be affected. Compensation will be in accordance with PRC and ADB requirements. Details on land acquisition and involuntary resettlement in this project are described in the Resettlement Plan for the Gansu Jiuquan Integrated Urban Environment Improvement Project. Table V.3 summarizes land acquisition and affected population information for this project. There will be no economic displacement in this project.

Table V.3: Summary of resettlement impact of the project

Roads, Bridges Wastewater Type and Windbreak Total Component Components Acquisition of collective land 25.72 ha 14.91 ha 40.63 ha Occupation of state-owned land 19.17 ha 0 ha 19.17 ha Temporary occupation of state-owned roads 0 ha 23.38 ha 23.38 ha Demolition of rural residential houses 5,624.00 m2 0 m2 5,624.00 m2 Demolition of non-residential houses on 21,580.45 m2 0 m2 21,580.45 m2 state-owned land No. of affected households 136 14 150 No. of persons from affected households 537 56 593 No. of affected enterprises & public institutions 21 0 21 No. of persons from affected enterprises & public 162 0 162 institutions Source: Resettlement Plan for the Gansu Jiuquan Integrated Urban Environment Improvement Project

185. Physical cultural resources. The Jiuquan Cultural Heritage Bureau has reviewed the status of cultural heritage within the project areas and concluded that no built heritage existed within the project areas. As such, there will be no impact on built heritage. Should buried artifacts of archaeological significance be uncovered during the construction stage within the project areas, construction will be stopped and immediately reported to the Bureau in accordance with PRC‘s Cultural Heritage Protection Law.

186. Occupational health and safety. Due to its nature the construction industry is considered to be one of the most hazardous industries where a number of potentially hazardous operations are carried out. The civil works contractors will implement adequate precautions to protect the health and safety of construction workers. Contractors will manage occupational health and safety risks by applying the following measures:

(i) Construction site sanitation:

a. Effectively clean and disinfect the site. During site formation, spray with phenolated water for disinfection. Disinfect toilets and refuse piles and timely remove solid waste;

b. Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year;

c. Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection.

(ii) Occupational safety:

a. Provide safety hats and safety shoes to all construction workers;

b. In addition, provide safety goggles and respiratory masks to workers doing asphalt road paving;

c. Provide ear plugs to workers working near noisy PME, especially during piling of bridge foundations.

(iii) Food safety: Inspect and supervise food hygiene in cafeteria on site regularly. Cafeteria workers must have valid health permits. Once food poisoning is discovered, implement effective control measures immediately to prevent it from spreading.

(iv) Disease prevention and safety awareness:

a. Provide construction workers with physical examination before start working on site. If infectious disease is found, the patient must be isolated for treatment to prevent the disease from spreading. From the 2nd year onwards, conduct physical examination on 20% of the workers every year;

b. Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents;

c. Specify (by the IA and contractors) the person responsible for health and epidemic prevention responsible for the education and propaganda on food hygiene and disease prevention to raise the awareness of workers.

187. Community health and safety. Traffic congestion may worsen as construction traffic in the urban area increases during rush hours, causing temporary inconvenience to traffic, residents, commercial operations, and institutions. Construction sites will be partly located close to residential and commercial urban areas, presenting a threat to public health and safety. The project may also contribute to road accidents through the use of heavy machinery on existing roads, temporarily blocking pavements for pedestrians etc. The potential impacts on community health and safety will be mitigated through a number of activities defined in the EMP. The contractors will implement the following measures:

(i) Traffic management. A traffic control and operation plan will be prepared together with the local 77

traffic management authority prior to any construction. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance;

(ii) Information disclosure. Residents and businesses will be informed in advance through media of the road improvement activities, given the dates and duration of expected disruption;

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

188. Utilities provision interruption. Construction may require relocation of municipal utilities such as power, water, communication cables. Temporary suspension of services (planned or accidental) can affect the economy, industries, businesses and residents‘ daily life.

189. Mitigation of impacts on utilities provision. The potential impacts on utilities provision will be mitigated through a number of activities defined in the EMP, to be incorporated in the bid documents and construction contracts:

(i) Contractors will assess construction locations in advance for potential disruption to services and identify risks before starting construction;

(ii) If temporary disruption is unavoidable the contractor will, in collaboration with relevant local authorities such as power company, water supply company and communication company, develop a plan to minimize the disruption and communicate the dates and duration in advance to all affected people.

D. Impacts and Mitigation Measures during the Operational Stage

190. Impact screening. Operations of the roads and bridges, the WWTP and the windbreak tree plantations will have potential impacts to physical settings such as air quality, noise, water quality and water resources, socio-economic conditions such as solid waste and public safety due to traffic accidents especially those involving vehicles carrying dangerous goods, and climate change from GHG emissions.

191. Main impacts to air quality will be from the exhaust emitted by vehicles travelling on the roads and bridges, and odor and boiler emissions from the WWTP. Vehicle exhaust emissions will include GHG which will have climate change implications. Noise impacts are due to traffic noise from vehicles

travelling on the roads and bridges, as well as equipment noise from the plant rooms in the WWTP. The discharge of treated effluent from the WWTP will have water quality implications to the Beida River, and the irrigation water for windbreak tree plantations will consume water resources. Operation of the WWTP will generate sludge, and also spent UV lamps, which are hazardous waste. Traffic accidents on these roads and bridges are social issues related to public safety. These potential impacts are assessed and addressed below.

192. Operation of the project components would not have potential impacts to the biological resources, ecology and biodiversity, and physical cultural resources. The vegetation at the project sites is dominated by temperate bushes, semi-bushes, irrigated crops and planted trees. Since this vegetation is entirely artificial, the impact on local vegetation is minor. This project will have slight benefit on ecology and biodiversity through the planting of windbreak trees and associated flora, providing habitats to birds, insects, butterflies, rodents and other animal species compared to the existing ecological condition of the project areas.

1. Impacts related to operation of Roads and Bridges

193. Air Quality. Motor vehicles travelling on the roads and bridges built in this project will emit air pollutants via exhaust. These pollutants include NO2, CO, HC and PM. Of these, the critical air pollutant is NO2, meaning that if NO2 complies with the applicable standard, other pollutants such as CO, HC and PM should also comply with their respective standards. Predictions in the EIR indicate that the concentrations of NO2 from peak hour traffic emissions would exceed the one-hour Class II NO2 standard of 0.24 mg/m3 in PRC‘s Ambient Air Quality Standard (GB 3095-1996) at the red line by year 2034 on all three proposed roads (Table V.4). Compliance would be achieved at a distance of 15 m from the road red line. One-hour NO2 concentrations at all 10 existing sensitive receptors identified in Table II.3 would therefore comply with the relevant GB 3095-1996 standard. New developments along these roads will need to have a minimum buffer distance of 15 m from the road red line.

3 Table V.4: One-hour NO2 concentration in mg/m during peak hour traffic on project roads Distance from Year GB 3095-1996 Class Road Red Line 2020 2025 2034 2 1-hr NO2 Standard 0 m 0.19 0.25 0.33 North Riverside Road 15 m 0.11 0.15 0.19 30 m 0.04 0.05 0.07 0 m 0.20 0.25 0.34 South Riverside Road 15 m 0.11 0.15 0.19 0.24 30 m 0.04 0.05 0.07 0 m 0.20 0.26 0.36 Panxuan Road 15 m 0.11 0.15 0.20 Extension 30 m 0.04 0.06 0.08 Note: Data in exceed the standard. Source: Domestic EIR

194. Noise. Motor vehicles travelling on the project roads will generate traffic noise. Traffic noise predictions provided by the EIR for the project roads are shown in Table V.5 below. According to the noise functional region classification in PRC‘s Environmental Quality Standard for Noise (GB 79

3096-2008), the area within 35 m from the road‘s red line is classified as Functional Region 4a with day time and night time noise limits of 70 dB(A) and 55 dB(A) respectively; while the area beyond 35 m from the road‘s red line is classified as Functional Region 2 for this project, with day time and night time noise limits of 60 dB(A) and 50 dB(A) respectively.

Table V.5: Predicted traffic noise attenuation on project roads

Time of Distance from Red Line Road Year Day 5m 15m 30m 35m 40m 50m 60m 80m 100m

2020 59.75 57.60 55.94 55.51 55.11 54.39 53.77 52.71 51.82

2025 60.78 58.62 56.97 56.53 56.13 55.42 54.79 53.73 52.84

Road North North

Riverside Riverside 2034 61.85 59.69 58.04 57.60 57.20 56.49 55.86 54.80 53.91

2020 59.85 57.70 56.04 55.61 55.21 54.49 53.87 52.81 51.92

2025 60.87 58.71 57.06 56.62 56.22 55.51 54.88 53.82 52.93

Road South South

Riverside Riverside 2034 61.93 59.77 58.12 57.68 57.28 56.57 55.95 54.88 53.99

2020 60.29 59.77 54.89 54.57 54.27 53.71 53.20 52.31 51.53

2025 61.29 60.77 55.89 55.57 55.27 54.71 54.20 53.31 52.53

Road Road

Day Time Traffic Noise [dB(A)] Noise Traffic Time Day Panxuan Panxuan Extension 2034 62.32 61.80 56.92 56.60 56.30 55.74 55.24 54.34 53.56

GB 3096-2008 70 [Functional Region 4a] 60 [Functional Region 2]

2020 52.69 50.53 48.88 48.44 48.04 47.33 46.71 45.64 44.75

2025 53.81 51.66 50.00 49.56 49.16 48.45 47.83 46.77 45.87

Road North North

Riverside Riverside 2034 55.10 52.94 51.29 50.85 50.45 49.74 49.11 48.05 47.16

2020 52.79 50.64 48.98 48.54 48.14 47.43 46.81 45.75 44.85

2025 53.91 51.76 50.10 49.67 49.27 48.55 47.93 46.87 45.98

Road South South Riverside Riverside 2034 55.20 53.05 51.40 50.96 50.56 49.85 49.22 48.16 47.27

2020 53.24 52.72 47.85 47.52 47.22 46.66 46.16 45.26 44.48

2025 54.36 53.84 48.97 48.65 48.34 47.79 47.28 46.38 45.60

Road Road

Night Time Traffic Noise [dB(A)] Noise Traffic Time Night Panxuan Panxuan Extension 2034 55.33 54.81 49.93 49.61 49.31 48.75 48.25 47.35 46.57

GB 3096-2008 55 [Functional Region 4a] 50 [Functional Region 2]

Data in exceeds the relevant GB 3096-2008 noise standard. Source: Domestic EIR

195. Table V.5 shows that both North Riverside Road and South Riverside Road would experience night time traffic noise exceedance in 2034 within 5 m in Functional Region 4a and 35-40 m in Functional Region 2. Therefore future developments along these two roads will not be located within 10 m from the roads‘ red lines in Functional Region 4a, and within 40 m from the roads‘ red lines in Functional Region 2 if there is no building in Functional Region 4a (but beyond 10 m from the roads‘ red lines) in front to provide a noise shielding effect. Night time traffic noise on Panxuan Road extension would also exceed GB 3096-2008 standard within 5 m from the road‘s red line in 2034. Therefore future developments along Panxuan Road extension will be located at least 10 m from the road‘s red line from

a noise perspective. However, air quality assessment above indicated a buffer distance of 15 m is needed, which will be adopted for all future developments along these roads.

196. Table V.6 shows the predicted traffic noise levels in 2034 (worst case) at the 10 existing sensitive receptors along Panxuan Road extension and North Riverside Road based on their distances from the red line and the predicted noise levels in Table V.5 above. All show compliance with noise standards for their respective functional regions.

Table V.6: Predicted 2034 traffic noise levels at the four existing sensitive receptors GB 3096-2008 Predicted Traffic Noise Distance from GB 3096-2008 Standard Level [dB(A)] Sensitive Receptor Road Red Functional [dB(A)] Line (m) Region Day Night (Day/Night) Xifengsi Village 15 4a 70/55 61.8 54.8 Guanbeigou Primary School 120 2 52.9 45.9 Guanbeigou Village N of Panxuan Road 40 2 56.3 49.3 Guanbeigou Village S of Panxuan Road 100 2 53.6 46.6 Christian Church 100 2 53.6 46.6 Fa‘Chuang Temple 130 2 52.9 46.1 60/50 Zhaojia Watermill 100 2 53.6 46.6 Hengyun Agricultural Materials 100 2 53.6 46.6 Processing Co. Jiuquan Dizhu Chinese Pharmaceutical 140 2 52.5 45.8 Co. Northern Suburban Park 15 4a 70/55 59.8 53.1 Source: Domestic EIR

197. Greenhouse Gas Emissions. For GHG emissions from road traffic, it has been described above under Climate Change in Section V.A: Positive Impacts and Environmental Benefits, that smoother traffic flows at higher speed on these project roads could reduce GHG emissions compared to congested, stop and go traffic.

198. Environmental Risk from Traffic Accidents Involving Vehicles Carrying Dangerous Goods. This concern was in fact raised by the stakeholders during the second round of public consultation (see Section VII.A below). According to information provided by the Jiuquan Transport Bureau, the project roads are classified as urban roads and no large motor vehicle carrying dangerous goods is allowed to travel on urban roads. With strict enforcement of traffic laws and regulations, such risk would be minimal. Strict enforcement of traffic laws and regulations are also measures to reduce traffic accidents in Jiuquan.

199. Risks related to the operation of project bridges. No significant risks and impacts are anticiated related to the operation of project bridges. The bridges include elevated pedestrian sidewalks and separated non-motorized lanes on each side to ensure pedestrian and non-motorized transport safety, respectively. There are no navigation requirements for the Beidahe River. The elevation of the bridges is thus defined to allow the passage of 1-in-100 year return period flood events (1,200 m3/s) in compliance with the MOC Technical Standard of Highway Engineering and the Criteria of Municipal 81

Bridge Design. The bridge design will comply with Earthquake Intensity Zone VII, with accelaration peaks of 0.15g. At the preliminary and detail design stage, earthquake intensity will be established in association with the National Seismic Authority as a basis of estimating the seismic load in defining the bridge structural basic frequency and dynamic structural response. As for the project roads, the two bridges are classified as municipal bridges on which dangerous goods transportation will not be allowed. With strict enforcement of traffic laws and regulations, the risk of traffic accidents involving dangerous goods will be minimal.

2. Impacts related to operation of Wastewater Treatment Plant

200. Air Quality. Operation of WWTP would emit odor. Potential odor sources in the WWTP include the intake screen, influent pump room, fine screen, A2/O reactors, sludge dewatering pump house, sludge storage tank and temporary sludge drying beds. Emissions of odorous chemicals such as NH3 and H2S from WWTPs are regulated by PRC‘s Discharge Standard of Pollutants from Municipal Wastewater Treatment Plant (GB 18918-2002). The Jiuquan No. 2 WWTP will have to comply with

Class II standard, with the maximum allowable concentrations of NH3 and H2S at the plant boundary being 1.5 mg/m3 and 0.06 mg/m3 respectively. Based on odor predictions, the FSR recommended a buffer distance of 300 m downwind of the WWTP to mitigate potential odor impact, with no development sensitive to odor pollutant allowed within 180 m downwind of the WWTP. The nearest sensitive receptor is Quanhu Village located 500 m to the west and upwind of the WWTP. No odor impact is expected from the operation of the Jiuquan No. 2 WWTP, including open drying of dewatered sludge in the sludge drying beds within the WWTP site.

201. Boilers in the WWTP will emit SO2 and PM when burning coal, estimated at 991.44 t/a. Boiler emissions are controlled by PRC‘s Air Pollutant Integrated Emission Standard (GB 16297-1996).

Prediction results in the EIR showed that boiler SO2 and PM emissions, without mitigation, would 3 3 exceed their respective GB 16297-1996 standards (200 mg/m for SO2 and 900 mg/m for PM) by approximately 5 times and 3 times respectively. Following EIR recommendation, boilers used in the Jiuquan No. 2 WWTP will be equipped with flue gas desulfurization and electrostatic precipitator for removing SO2 and PM to minimize air pollution. Stack emissions will be regularly monitored to confirm compliance with GB 16297-1996.

202. Noise. Operational noise impact could potentially come from the WWTP. Noise levels from equipment range from 80-105 dB(A) according to estimates provided in the domestic EIR. To mitigate potential noise impacts, the WWTP will use low noise equipment and building walls with sufficient thickness and acoustic measures such as barriers or sound absorbing materials. The WWTP O&M unit will also diligently maintain such equipment to keep them in good working conditions. With the above mitigation measures in place, noise levels from equipment could be reduced to 70-95 dB(A). Noise levels at the boundaries were predicted to range from 52-55 dB(A) during day time and 48.7-49.8 dB(A) at night, which comply with Grade II noise requirements of 60 dB(A) during day time and 50 dB(A) at night under PRC‘s Noise Standards at the Boundary of Industries and Enterprises (GB 12348-2008).

203. Water Quality. Potential water quality impact would result from the discharge of treated effluent from the Jiuquan No. 2 WWTP. The Jiuquan EPB has confirmed in writing that the effluent standard for Jiuquan No. 2 WWTP is Class 1B for discharging into the Beida River, and Class 1A should the effluent be re-used (see Appendix 2). This project will remove 60,000 m3/d of untreated wastewater from entering the Beida River. Through treatment to Class 1B standard, substantial amount of pollutants will be removed every year (see Table V.1) benefiting the water quality of Beida River. The section of Beida River through the Jiuquan urban area is a GB 3838-2002 Category III water body. Table V.7 compares Class 1B discharge standard with Category III water body water quality, showing that the treated effluent still exceeds Category III water quality standards except for pH and fecal coliform bacteria.

Table V.7: Comparison of Class 1B effluent standard with Category III water quality standard GB 18918-2002 Class 1B Effluent GB 3838-2002 Category III Water Parameter Standard Quality Standard pH 6 - 9 6 - 9 Chemical oxygen demand (COD) ≤ 60 mg/l ≤ 20 mg/l

5-day biochemical oxygen demand (BOD5) ≤ 20 mg/l ≤ 4 mg/l Suspended solids (SS) ≤ 20 mg/l no standard 1 Ammonia nitrogen (NH3-N) ≤ 8 (15) mg/l ≤ 1.0 mg/l Total nitrogen (TN) ≤ 20 mg/l ≤ 1.0 mg/l Total phosphorus (TP) ≤ 1.0 mg/l ≤ 0.2 mg/l Total petroleum hydrocarbon (TPH) ≤ 3 ≤ 0.05 mg/l Anionic surfactant (also known as LAS) ≤ 1 ≤ 0.2 mg/l Fecal coliform bacteria 10,000 counts/l 10,000 counts/l Note 1: the standard inside ( ) is for water temperature ≤ 12o C, the standard outside ( ) is for water temperature > 12o C

204. Water quality modeling was undertaken by the LDI conducting the EIR to predict the mixing zones of COD, BOD and NH3-N in the treated effluent upon discharge into the Beida River. ―Mixing zone‖ is a concept commonly applied to effluent discharges into water bodies. Recognizing technological and economic limitations in wastewater treatment, and the dispersive and assimilative capacity of water bodies, effluent quality that exceeds applicable standards (in this case is Category III water quality standards) is allowed within the mixing zone, provided that there is no sensitive receptor within the mixing zone that could potentially be adversely affected by the pollutants. The size of the mixing zone in this case is the downstream distance from the effluent discharge point, at which the concentrations of

COD, BOD5 and NH3-N would meet Category III water quality standards.

205. Table V.8 shows the mixing zone distances downstream of the effluent discharge point based on water quality modeling. Upon discharge, the effluent will immediately go through initial dilution by the river water at the discharge point and mixed with pollutants already present in the river. Table V.8 also shows the concentrations of COD, BOD5 and NH3-N upon initial dilution and after mixing with same pollutants in the river at the discharge point, indicating that substantial reduction in concentrations would occur at the discharge point. After initial dilution, the pollutants will go through natural decay in the river water eventually reaching Category III water quality standards at the edge of the mixing zone downstream. Table V.8 shows that COD, BOD5 and NH3-N would almost meet Category III water quality standards after initial dilution (this takes into account mixing with the background, which are 17.8 mg/l, 4 83

mg/l and 0.66 mg/l respectively for COD, BOD5 and NH3-N), and upon natural decay COD would meet Category III water quality standard approximately 330 m downstream of the effluent discharge point, while NH3-N would require almost 4 km downstream to meet Category III water quality standard. As described above, Beida River does not sustain any aquatic biota and the nearest sensitive receptor is the Yuanyang Reservoir located approximately 35 km downstream of Jiuquan. A mixing zone of up to 4 km would not have adverse impact that could potentially affect any sensitive receptor. Table V.8 also shows that after initial dilution, the concentrations of COD, BOD5 and NH3-N would comply with Category V water quality standards, which are the standards deemed suitable for agricultural use. There would not be adverse impact on agricultural use. In the mid- to long-term, treated effluent will be reused as power plant cooling water. This will further reduce pollutant loading entering the Beida River.

Table V.8: Mixing zones of COD, BOD5 and NH3-N upon effluent discharge Water Class 1B Effluent Category III Water Category V Water Concentration Mixing Zone Quality Standard (GB Quality Standard Quality Standard upon Initial Distance Parameter 18918-2002) (GB 3838-2002) (GB 3838-2002) Dilution Downstream COD 60 mg/l 20 mg/l 40 mg/l 20.1 mg/l 330 m

BOD5 20 mg/l 4 mg/l 10 mg/l 4.88 mg/l 3,273 m

NH3-N 8 mg/l 1 mg/l 2 mg/l 1.06 mg/l 3,949 m Source: Environmental Quality Assessment Research Center of Lanzhou University

206. Ground Water. The EIR estimated that the groundwater level at the WWTP site was approximately 10-15 m below ground level and therefore WWTP operation would not affect ground water quality during normal operations.

207. Solid Waste. General refuse generated at the WWTP will be collected regularly for disposal at landfills. Spent UV lamps from the WWTP contain mercury (Hg) and are therefore classified as hazardous waste. These will be transported to the medical waste treatment facility for treatment to render non-hazardous. The WWTP O&M unit would negotiate with the UV lamp suppliers to have the latter take back spent lamps for recycling, thus removing these from the waste stream.

208. Sludge. Approximately 26.77 t of dewatered sludge (80% water content) will be generated each day at the Jiuquan No. 2 WWTP during operation. For disposal at sanitary landfill, the moisture content of the sludge should not be more than 60% according to PRC‘s Disposal of Sludge from Municipal Wastewater Treatment Plant – Quality of Sludge for Co-landfilling (GB/T 23485-2009). As an interim measure, sludge drying beds will be constructed on the Jiuquan No. 2 WWTP site (in the area reserved for Phase 2 expansion) to take advantage of the high evaporation rate in Jiuquan to air dry the sludge to <60% moisture content so that it complies with the moisture content requirement for landfill disposal, until the planned central sludge treatment facility is put in operation to take in the sludge from the WWTP. At the same time, chemical testing of the sludge will be conducted to determine whether the sludge is suitable for re-use, especially as a soil conditioner for the windbreak tree plantations. The Forestry Bureau of Suzhou District has issued a letter dated 17 July 2012 indicating acceptance of such product for windbreak tree plantations (Appendix 6). The landfill disposal method will only be used as an emergency and backup disposal option. The Urban Environmental Sanitation Bureau of Suzhou 84

District has issued a Notice (Document [2012] No. 59) on 18 July 2012 indicating acceptance of disposing the dewatered sludge from Jiuquan No. 2 WWTP at the District‘s sanitary landfill (see Appendix 3). In the long run, a sludge treatment facility will be provided to properly handle all sludge generated from existing and future WWTPs in Jiuquan.

209. Greenhouse Gas Emissions. GHG will be generated through the use of electricity for operation of the WWTP. Energy efficiency has been considered in the process and system design as well as operation and maintenance of the WWTP, including:

(i) In view of the high oxygen utilization (reaching 20-30% under normal operating conditions) in the A2O process, the blowers will operate on a variable frequency drive so that the air flow rate can be adjusted to save energy based on influent flow rates and actual dissolved oxygen concentrations measured in the tank;

(ii) In the plant layout, electrical equipment will be located as close to the power source as possible to reduce losses through long lengths of low voltage pipeline;

(iii) In determining elevations of treatment structures, the required elevations will be estimated as accurately as possible to reduce head loss and pump head required;

(iv) All buildings will have wall, ceiling, and window insulation;

(v) Energy efficiency will be considered in the selection of controls and safety equipment;

(vi) Measures will be taken to spread awareness to all workers of the importance and urgency of energy conservation activities;

(vii) Natural light will be used where possible in buildings, and energy-efficient and effective lighting equipment will be used where necessary;

(viii) Regular equipment inspections and maintenance will be conducted;

(ix) Excessive fluctuations in operating voltage for lighting transformers will be avoided to increase the operating life of the lighting equipment;

(x) Lighting equipment will be grouped and selected according to actual lighting needs of the local work environment.

210. Risks of Accidental Discharge, Overload and Emergency Preparedness. There is a risk of accidental release of untreated wastewater at the Jiuquan No. 2 WWTP, due to a possible malfunctioning of the electric, mechanical or control system, or the failure of the treatment process as a result of shock loads or chronic system overload. This risk has been identified and assessed in the FSR and EIR. The mitigation measures include:

(i) provision of dual power supply;

(ii) spare parts for key components;

(iii) regular inspection and proper maintenance of the WWTP;

(iv) automated on-line, real-time monitoring of influent and effluent quality; and

(v) an in-house analytical lab will be established prior to operation of the WWTP. The major analytical equipment will include the following: wastewater sampler, pH meter, flow meter, conductivity meter, UV/VIS spectrophotometer, DO meter, COD speedy tester, thermostat incubator, electric balance, and centrifuge.

211. Approximately 40% of the influent will be from the industrial parks. Each factory in the industrial park is equipped with emergency holding ponds to deal with a possible accidental release. The industries are being monitoring by the EPB every three months. Major industries are equipped with on-line monitoring systems.

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

213. Occupational Health and Safety. WWTP operators may be injured by slips, trips and falls on wet floors; by falls into treatment ponds, pits, clarifiers or vats and by splashes of hazardous liquids; they may suffer cuts and pricks from sharp tools, contusions, etc. They are exposed to hazards related to work in confined spaces. The following measures will be implemented to safeguard their safety and health:

(vi) use safety shoes or boots with non-slip soles;

(vii) wear personal protective equipment and chemical resistant clothing to avoid exposure of skin or eyes to corrosive and/or polluted solids, liquids, gases or vapors;

(viii) post safety instructions in each workshop regarding the storage, transport, handling or pouring of chemicals;

(ix) check electrical equipment for safety before use; verify that all electric cables are properly insulated; take faulty or suspect electrical equipment to a qualified electricity technician for testing and repair;

(x) wear safety goggles in all cases where the eyes may be exposed to dust, flying particles, or splashes of harmful liquids;

(xi) wear respiratory mask in the sludge dewatering and de-odor workshops and when moving and

transporting sludge;

(xii) obey all safety instructions concerning entry into confined spaces, e.g., check atmosphere for oxygen or for poisonous gases, use respiratory protection equipment if needed, have a co-worker stand guard in case of need for help, etc;

(xiii) all workers will undergo periodic examinations by occupational physician to reveal early symptoms of possible chronic effects or allergies; and

(xiv) health and safety will be incorporated into the regular staff training programs.

3. Windbreak Tree Plantation

214. Water Resources. As described earlier, the Taolai River Basin Water Resources Management Bureau of the Gansu Provincial Water Bureau, in accordance with the ―Water right allocation plan of river water from major rivers in the Taolai River basin of the Hexi region in Gansu Province‖, allocated 94 million m3 per year of Taolai River water for ―eco-environmental‖ use in Jiuquan. This amount is approximately 72% of the river water allocated for ―eco-environmental‖ use and approximately 14.5% of Taolai River‘s annual runoff. Of this allocation, 10 million m3 (or 10.6% of the Jiuquan allocation, 7.7% of the eco-environmental use allocation, and 1.6% of the annual average runoff) were assigned for use in the Jiuquan Integrated Urban Environment Improvement Project including river and wetland components (not financed in the project), and irrigation of windbreak trees and landscape (financed in this project). Windbreak tree irrigation has been estimated to use approximately 1 million m3 per year of this allocated river water. This amounts to 10% of the Jiuquan Integrated Urban Environment Improvement Project, 1% of Jiuquan‘s ―eco-environmental‖ use allocation, and 0.15% of Taolai River‘s annual runoff. Such small quantity relative to Taolai River‘s annual runoff would have no adverse impact on water resource.

E. Cumulative Impacts

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

216. The active construction of multiple roads, wastewater collection pipelines and a WWTP will cause a magnification of environmental and social impact in the project areas in terms of traffic on the existing road network, civil works, air-borne dust, waste generation and community disturbance. The installation of associated utilities during road construction works will benefit from the concurrent earthworks for new roads, sharing trenches and construction equipment, without adding significantly to construction impacts.

217. Construction related cumulative impacts will be effectively minimized by adopting proper

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

F. Indirect and Induced Impacts

218. Roads and Bridges. The construction of a new road or bridge where none previously existed, or the re-construction of an existing bridge to a different class of usage has the potential to influence traffic volumes and consequent developments on adjacent roads. All roads and bridges as well as future traffic volumes on these roads and bridges have been examined in the context of the appropriate Master Plans in the FSR. The project roads are in line with the approved Jiuquan Urban Master Plan (2011-2030), the Jiuquan 12th Five-year Plan for Road Transport Development (2011-2015), and will thus not induce uncontrolled development. The proposed roads and bridges will address the weak links of the existing road network. With their completion, the scope of the road network will be expanded, and the traffic function and level of service provided for the adjacent areas will be improved and enhanced. Their individual contributions to, and influence on the district and neighborhood traffic flows, have therefore been assessed within the context of the relevant plans and are considered appropriate. Significant indirect or induced negative impacts are not anticipated.

219. Wastewater Treatment. Discharge of treated effluent from the WWTP to the Beida River will not have significant indirect and induced impacts to agricultural use of the river water downstream as described in Section V.D.2. Indirect impacts are limited to the mixing zone, i.e., the downstream distance from the effluent discharge point, at which the concentrations of COD, BOD5 and NH3-N would meet Category III water quality standards. The domestic EIR confirmed that there is no sensitive receptor or water user in the predicted mixing zone (i.e., the river section from the discharge point to 4km downstream) that could be potentially affected by discharged pollutants.

220. Windbreak Tree Plantation. This component does not have significant indirect and induced impacts. The water extraction rate of 1 million m3 per year from the Taolai River (Beida section) will not exceed 0.2% of the annual average runoff. The water extraction is within the allocated water extraction permit for eco-environmental use of Jiuquan of 94 million m3 per year. of , and will not have significant impacts on downstream water users (refer to Section V.D.3 and the discussion below for a more comprehensive analysis of impacts on local water resources). No groundwater will be used to irrigate the project‘s windbreak tree plantation. This is flagged as loan assurance.

221. Impact of urban growth on sustainability of local water resources. In 2008, the Gansu Provincial Hydrological Bureau and the Taolai River Basin Management Bureau issued the Taolai River Basin Water Rights Distribution Plan which specifies the distribution of water resources in the river basin. The water resources available for use amount to 1,531 million m3 per year based on mean annual flows and groundwater yields, with 61% from the Taolai/Beida River and five other main rivers to the east including the Hongshui River, and 39% from groundwater. Allocations for different uses are shown in Table V.9, indicating that the majority is for agricultural use. 82 million m3 per year of water are allocated for domestic, industrial and ecological use in West Suzhou District, the urban area of Jiuquan.

Table V.9: Allocations by Water Use Category 16 TAOLAI RIVER BASIN Water Use Household Industrial Agricultural Ecological Reserved Total Water Allocation (m3x106) 61.5 145.6 1082.2 130.2 56.5 1,476 WEST SUZHOU DISTRICT (Jiuquan urban area) Water Allocation (m3x106) 28.2 16.5 418.0 37.0 500

222. Based on water use category projections, the average daily demand in the Jiuquan urban area will reach 200,000 m3/d (73 million m3/a) by 2030 with peak daily water demand of 259,000m3/d. This is within the allocated 82 million m3/a of water for domestic, industrial and ecological use. Peak domestic water consumption will amount to 117,000m3/d; peak industrial water consumption will amount to 115,000m3/d; peak demand for ecological use will amount to 13,000m3/d. Other uses, including water losses, will amount to 15,000 m3/d.

223. To meet the water supply target, water treatment plants in the region will be expanded and a new wastewater reclamation plant will be built, as shown in Table V.10. Supply capacity in 2030 will reach 260,000 m3/d, which will meet the average demand of 200,000 m3/d and peak demand of 259,000 m3/d.

Table V.10: 2030 Water Supply Plan for the Jiuquan Municipality’s Central Urban Area

16 Gansu Provincial Hydrological Bureau, Taolai River Basin Management Bureau (2008). Taolai River Basin Water Rights Distribution Plan. 89

Subtotal 11.6 22.0 28.0 Water Reclamation 1.2 4.0 - WWTP Effluent Reuse in power plant Plant Mostly military use; also Other Sources 1.5 - - Groundwater other entities with - individual water supplies Subtotal 2.7 4.0 Total 14.3 26.0 28.0

G. Associated and Linked Facilities

224. The project does not comprise typical associated facilities, as defined under ADB‘s SPS (2009). There are no facilities that are not funded by the project, but whose viability and existence are entirely dependent upon the project, and whose goods or services are essential for the project‘s successful operation. However, the project will require some external services to achieve the full environmental benefits envisaged by the project – the facilities or services are classified as linked facilities. Linked facilities include public utilities such as electricity, heating, water supply and wastewater collection using the pipelines and conduits installed during the construction of the roads. These facilities have been described above in Chapter IV: Description of the Environment, Section D: Socio-economic Conditions, through a review of documentation, site visits, and discussions with relevant agencies, which confirmed that the linked facilities complied with relevant standards and do not represent significant risks to the success of the project.

VI. ANALYSIS OF ALTERNATIVES

A. Introduction

225. During project preparation, various alternatives for the project components were proposed, screened, and studied against technical, economic, social, energy efficiency and environmental criteria. The range of alternatives considered depended on the infrastructure sector and its characteristics.

B. No Project Alternative

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

227. This project has four components: (i) urban roads, bridges and associated public utility infrastructure; (ii) wastewater collection and treatment; (iii) windbreak tree plantations; and (iv) institutional strengthening and capacity development of related urban environment and transport services. All are aiming at improving the urban environment of Jiuquan, thereby facilitating socio-economic growth and better living conditions for the benefit of its citizens.

228. Without the road and bridge component, Jiuquan‘s road network will be unable to provide adequate urban links among the Old Urban Zone and the new development areas including the Jiiu-Jia New Urban Zone, the High Speed Rail Zone and the West and South Industrial and Commercial Zones. Roads built under this project will provide important urban links for the citizens to go between their residences to regional transport hub such as the High Speed Rail Station and to their workplaces in the industrial zones. The Panxuan Road extension will provide important inter-city link between Jiuquan and Jiayuguan and will alleviate the already heavy traffic on National Highway G312, improving the already close interaction of these two cities to further their socio-economic development.

229. Without the wastewater collection and treatment component, untreated wastewater will continue to be discharged to the desert, into collection ponds for natural evaporation and seepage, or into the Beida River, causing pollution to the environment, ground water and surface water. The existing Jiuquan WWTP will continue to experience the problem of overload and will continue to overflow the excess untreated wastewater that the WWTP is unable to treat. The Jiuquan No. 2 WWTP and collection pipelines built under this project will provide 60,000 m3/d of treatment capacity, adequate for up to 2020. By treating to Class 1B effluent standard, pollutant loadings discharging to the Beida River will be significantly reduced (see Table V.1), benefiting the water quality of Beida River.

230. Without windbreak trees, Jiuquan will continue to suffer from strong winds and sand storms 91

from the Gobi Desert, which affect air quality due to dusty conditions, visibility that affects traffic conditions, and vegetation and agriculture due to strong winds and sand deposits. Windbreak tree plantations under this project will contribute to the JMG‘s long-term plan to plant windbreak trees in Jiuquan to reduce the impact of strong winds and sand storms from the desert, and to reduce the pace of desertification.

C. Alternatives Considered

231. The range of alternatives considered depended on the infrastructure sector and its characteristics. Many of the FSRs‘ alternatives analyses were concerned with technical and engineering specifications. These included: road alignments, surface materials, base course materials and cross section designs for roads, wastewater treatment process, wastewater treatment plant site, pipe laying techniques, pipe materials and pipe sizes for the WWTP.

1. Roads and Bridges

232. Road Alignment. Alternatives comparisons were conducted for the road alignment of sections of the North Riverside Road and the South Riverside Road.

233. For the middle section of North Riverside Road two alignment alternatives were analyzed (Figure VI.I). The existing 18m wide road and the tree belt along the road were considered to be utilized. Two alignment alternatives were analyzed: (i) use of the existing road for cycles and pedestrians, using the existing tree belt located on the north side of the road as MV/NMV separation; and (ii) use the existing road as carriageway, expanding NMV and pedestrian paths toward the river by taking up the space for amenity, and by taking the existing dyke for pedestrian path. While the two options are not significantly different in terms of their potential environmental impact, option (i) was selected as it provides more space for amenity and a better intersection and traffic safety in front of Jiuyin Bridge.

234. For the eastern section of North Riverside Road, two alignment options were also examined (Figure VI.I). Option (i) would make use of an existing road which runs away for the northern river bank. Option (ii) would run along the river bank. Option (i) would require widening of the existing road alignment which involves substantial land acquisition and resettlement. The option of the road alignment running along the river bank and requiring less land resumption and resettlement was adopted. Since the two options are not significantly different from an environment safeguards point of view, the selected option is justified.

Figure VI.1: Alternative alignments of the North Riverside Road (Source: Draft FSR)

235. Two alignments of the South Riverside Road were examined and the one that runs along the river bank with less intrusion into the scenery and the man-made lake was adopted (Figure VI.2).

Figure VI.2: Alternative alignments of the South Riverside Road (Source: Draft FSR)

236. Road Pavement. A comparison was made between cement concrete and asphalt concrete surface pavement. Asphalt concrete pavement was recommended because it is relatively easy to be applied and repaired. In addition, it will be more appropriate for the local weather condition and to a certain extent it reduces road traffic noise in comparison with rigid concrete pavement.

237. Road Cross-Sections. There are four types of cross sections, which characteristics and application are shown in Table VI.1. Based on the city‘s master plan, characteristics of traffic flow and the road function, all project roads will have a ―Four-section‖ design with separated motorized and non-motorized lanes, pedestrian sidewalks, and median separators. The selected option is also jusified from an environment, health and safety point of view, by (i) promoting zero-emission, non-motorized transport; and (ii) avoiding interference of non-motorized and motorized transport, thus enhancing traffic safety and promoting smooth traffic flows.

Table VI.1: Comparison of cross section alternatives Cross Section Characteristics Application (i) There is no specific lane for non-motorized traffic which uses motorized traffic lane; Secondary or branch road with low One-section (ii) There is no separation for the lanes going the opposite direction which motorized and non-motorized traffic flow causes interference and low traffic speed. (i) There is no specific lane for non-motorized traffic which uses motorized Secondary or main road or highway Two-section traffic lane; with heavy motorized traffic flow and (ii) The lanes going in the opposite direction are separated low non-motorized traffic flow (i) There is a NMT lane which avoids the interference among the motorized Main road with continuous heavy and non-motorized traffic flow and pedestrian, and the safety of non-motorized traffic flow; or main road Three-section non-motorized traffic is guaranteed; with rapid growth of pedestrian and (ii) There is no separation for the lanes going in opposite directions. non-motorized traffic flow (i) There is NMT lane which avoids the interference among the motorized and non-motorized traffic flow and pedestrian, and the safety of non-motorized Main road or highway with heavy Four-section traffic is guaranteed; motorized and non-motorized traffic flow (ii) The lanes going in opposite directions are separated. Source: Draft FSR

238. Bridge Scheme. Three schemes for the Xiyi Bridge structure were considered: (i) a pre-stressed concrete box girder with proposed segments of 5×35 m + 6×40 m + 5×35 m; (ii) a triple low tower cable-stayed bridge with main spans of 85 m + 2×150 m + 85 m = 470 m and a pre-stressed concrete box girder with spans of 2×30 m = 60 m on both southern and northern banks; and (iii) three main bridge spans with twin tower cable stayed bridge with span arrangements of 70 + 150 + 70 = 290 m and both approaches adopting pre-stressed concrete box girders with spans of 5×30 m = 150 m on the southern bank and 5×30 = 150 m on the northern bank. The second scheme, i.e. a triple low tower cable-stayed bridge, was selected because it is more visually pleasing and in harmony with the local environment than the first scheme and less costly than the third scheme. It was later revised to a single tower cable-stayed bridge, which is the one adopted for the project (see Figure III.5). The different bridge designs are not significantly different in terms of potential impacts on water flow.

Table VI.2: Comparison of three bridge schemes for Xiyi Bridge Bridge Scheme Scheme I Scheme 2 Scheme III Pre-stressed Triple low tower cable Twin tower cable continuous concrete stayed bridge stayed bridge box girder Span Arrangement (m) 5×35+6×40+5×35 2×30+85+2×150+85+2×30 5×30+70+150+70+5×30 Total Length (m) 590 590 590 Bridge Aesthetics Acceptable Visually pleasant Visually pleasant

Bridge Scheme Scheme I Scheme 2 Scheme III Pre-stressed Triple low tower cable Twin tower cable continuous concrete stayed bridge stayed bridge box girder Construction Well-developed Well-developed technique; Well-developed technique; Difficulty technique; Comparatively difficult Comparatively difficult Comparatively not construction construction Difficult construction Cost Estimate (CNY 120.71 161.07 175.52 million) Proposed / Alternative Selection (later revised to Alternative Alternative single tower) Source: Draft FSR

239. Three schemes for the Jiuyin Bridge structure were also considered: (i) A five span constant depth of continuous pre-stressed concrete box girder (5×40 m = 200 m); (ii) a pre-stressed concrete continuous girder formed by a continuous rigid frame with a V shape pier together with an arch at the middle span was proposed with a span arrangement of 2×35 + 60 + 2×35 = 200 m; (iii) a cable-stayed bridge with two spans of 140 + 60 = 200 m and single tower height of 74 m. The second scheme, i.e. rigid frame with arch, was adopted because it is more visually pleasing and in harmony with the local environment than the first scheme yet less costly than the third scheme (Table VI.3). The different bridge designs are not significantly different in terms of potential impacts on water flow.

Table VI.3: Comparison of three bridge schemes for Jiuyin Bridge Scheme 1 Scheme 2 Scheme 3 Bridge Schemes Pre-stressed continuous Rigid frame plus Single tower cable concrete box girder arch stayed bridge Span Arrangement (m) 5×40 2×35+60+2×35 140+60 Total Length (m) 200 200 200 Bridge Aesthetics Acceptable Visually pleasing More visually pleasing Well-developed Well-developed Well-developed technique; technique; Construction Difficulty technique; Comparatively Comparatively not difficult Comparatively difficult difficult construction construction Cost Estimate (CNY 31.00 38.20 42.64 million) Proposed / Alternative Alternative Selection Alternative Source: Draft FSR

2. Wastewater Collection and Treatment

240. WWTP Site. Two alternative sites were considered for the wastewater treatment plant (Table VI.4). The first site is located northeast of the 7th Block of Shuimogou in Quanhu Township, Jiuquan Municipality. It is 1,600 m east of Jiu-Hang Highway, approximately 500 m from Quanhu Village in Quanhu Township, and 980 m north of Jiu-Jin Highway. The elevation is 1,426 m, located close to the south bank of the Beidahe River at the lowest point in the city. Transportation to the site is convenient; there is a lot of open space. The total footprint of the No. 2 WWTP will be 14.91 hm2, of which 5.95 hm2 is cultivated land and 8.96 hm2 is uncultivated land. The land is currently under collective ownership. The second alternative site is located approximately 30 m south of Jiu-Jin Highway, 2.2 km east of 95

Jiu-Hang Road. The space available at this site is limited. The area is mostly cultivated land, with little unused land. The elevation is 1,429 m, and cannot be fed by gravity from some areas north of the Beidahe River. Additional pumps either in the collection system or at the plant would be needed to raise the head by 5-6 m, increasing long-term operational costs. Assuming a long term plant capacity of 100,000 m3/d, the additional power cost will be approximately CNY700,000 per year. In addition, Alternative 2 is farther from Beidahe River, and a longer effluent discharge piping would need to be constructed. Based on the above comparison, the first site was selected.

Table VI.4: Alternative sites for the proposed wastewater treatment plant (WWTP) Site 1 (selected) Site 2 (Alternative) Elevation and Wastewater 1,426 m 1,429 m Transfer Requirements Gravity flow with no pressurization Wastewater pumping needed, necessary, saving on energy and requiring approximately CNY700,000 O&M costs per year in operational costs for a 10,000 CMD plant Ability to Meet Plant Footprint Enough space for WWTP, sludge Site is long in the east-west direction Requirements treatment and wastewater and narrow in the north-south reclamation systems direction, not conducive for overall Mostly unused land on the southern plant layout shoreline, with little cultivated land Northern end is restricted by the Space available for future expansion provincial highway; southern end is Site is wide in the north direction, restricted by existing farmland suitable for overall plant layout An existing 2m wide irrigation channel runs through the site Insufficient space for future expansion Influent/Effluent Piping 70 m long effluent discharge pipe 1.5 km long effluent discharge pipe, Pipe would cross South Riverside increasing construction costs by Road and directly discharge into the approximately CNY3 million Beidahe River Influent wastewater pipe will need to cross the provincial highway Effluent discharge pipe would need to cross farmland before discharge, increasing construction costs. Distance from Residential Areas Located further from residential Located closer to residential areas areas Approximately 290 m east and 200m Approximately 530m east of north of residential areas residential area on the west Cannot meet future national Can meet future national regulations regulations of maintaining a (distance of more than 300 m) and distance of more than 300 m the project‘s EIA requirements Compensation for Temporary Use of Low High Land during Influent Pipeline Construction Source: Draft FSR

241. Wastewater Treatment Process. Two wastewater treatment processes were compared: (i) A2/O which is an anaerobic/anoxic/oxic activated sludge process, and (ii) Carrousel oxidation ditch activated sludge process The A2/O treatment process was selected due to its stable system operations, good treatment efficiency and reliability, and relatively small capital and O&M costs compared to

alternative 2. The comparison is presented in Table VI.5.

Table VI.5: Alternative wastewater treatment processes Alternative 1 Alternative 2 Conventional A2/O Diffused Aeration Carrousel Oxidation Ditch Process Process Aeration Method Diffused aeration Mechanical aeration Process Characteristics Air delivered by blowers; fine pore Rotary disk type configuration dives the aeration results in high oxygen utilization mixed liquor forward while simultaneously rates mixing it. Air delivered by surface aerators, resulting in lower oxygen utilization rates compared to diffused aeration Operations Management Relatively, more equipment and Fewer equipment; simple management, structures; complex and high convenient requirements for operations management Water Quality Stable effluent water quality, relatively Stable effluent water quality, relatively easy to make operational adjustments more difficult to make operational based on water quality changes adjustments based on water quality changes Energy Consumption Relatively low Relatively high Equipment More in type and number One equipment type, also fewer in number O&M Costs Relatively low Relatively high Land Requirements Greater tank depth, smaller footprint Shallower tank depth, larger footprint Suitability for Low Deeper tank, smaller surface area, less Shallower tank, larger surface area, more Temperatures heat loss; bottom aeration, water surface heat loss; surface aeration; large calmer, less atmospheric heat exchange; disturbance of the water surface; more in diffused aeration, after pressurization atmospheric heat exchange; in through the blowers the air can transfer mechanical aeration, water temperature in heat to the water helping in heat the tank lowers with atmospheric preservation in the tank. temperature in the winter, with no special measures for heat preservation Source: Draft FSR

242. Disinfection. For disinfection of treated wastewater effluent, both chlorination and UV radiation were compared. UV radiation was selected which has environmental merit over chlorination because UV radiation, unlike chlorination, will not form potentially carcinogenic chlorination-by-products during the disinfection process.

243. Sludge Thickening and Dewatering. Two alternatives for sludge thickening and dewatering were considered: (i) thickening and dewatering in separate process units and (ii) thickening and dewatering in a combined process unit (Table VI.6). Alternative 1‘s advantages include lower energy consumption, lower capital and O&M costs and greater operational flexibility. It can also use the same belt filter press equipment as the existing Jiuquan WWTP. Alternative 2 provides a better operational environment, uses less water for rinsing, is easy to manage, and has a smaller footprint. However, the equipment costs and power requirements are higher. After comparison of the two alternatives, Alternative 1 was selected. The resulting sludge water content will be approximately 75-80%.

Table VI.6: Comparison of sludge thickening and dewatering processes Alternative 1 Alternative 2 Factor thickening and dewatering in thickening and dewatering in a separate process units combined process unit Operation Environment Relatively good Relatively good Noise Slightly lower Relatively high (88 dB(A)) Dry Solids Content 20-25% 20-25% Installed Capacity Power Requirements 42.4 kW 64.4 kW Annual Power Cost CNY220,000 (2 units) CNY395,000 (2 units) Equipment Cost CNY4.27 million CNY4.62 million Footprint Larger (45 m x 15 m) Smaller (25 m x 15 m) O&M Costs Relatively low Relatively high Source: Draft FSR 244. Wastewater Pipeline Alignment. Two alternative layouts were considered for the wastewater collection pipelines. Table VI.7 presents a comparison of the two alternatives. Alternative 1 was selected for the following reasons: (i) it is able to collect more wastewater from north bank of the Beida River especially within the West Industrial and Commercial Zone, (ii) it is more feasible in the South Industrial and Commercial Zone because the pipeline can run along existing roads, (iii) it is easier to install and less costly in the High Speed Rail Zone with shallower pipe laying depth and (iv) overall cost is lower, the sewer coverage area is larger, and the constructability is better. Table VI.7: Comparison of alternative wastewater pipeline alignments Sewer System Alternative 1 (Selection) Alternative 2 System runs along North Riverside Road and extends towards the east, crossing the Beidahe River Sewer runs along North Riverside Road, Western Industrial approximately 250 m west of Jiu-Hang Highway using a crossing the Beidahe River 250 m west of Zone double barrel inverted siphon before connecting with the the Beidahe River Bridge. No. 2 WWTP plant influent sewer main. System runs along Jiefang Road and extends towards System runs along Jiefang Road and the north until National Highway 312, where it meets the extends northward to National Highway 045, New Area sewer system and continues east until the where it extends eastward and meets the Southern intersection of National Highway 312 and Jiu-Hang Jiuquan-Jiayuguan New Area Zone and Industrial Zone Road, where it meets the High-speed Railway Zone High-speed Railway Zone sewer systems sewer system, finally continuing north along Jiu-Hang before continuing along Jiu-Hang Highway Road to the No. 2 WWTP. northward to the No. 2 WWTP. System starts off along National Highway 312 and System runs along National Highway 312 extends west 1 km before extending northwest to Qilian westward towards Jiu-Hang Highway, where High-speed Road. It then continues along Qilian Road westward to it meets the Southern Suburb Industrial Zone Railway Zone Jiu-Hang Road, meeting the Southern Suburb Industrial sewer system and continues north along Zone system, before it continues north along Jiu-Hang Jiu-Hang Highway to the No. 2 WWTP. Road to the No. 2 WWTP. Mainly serves the southern portion of the zone. Sewer runs along National Highway Jiuquan – Mainly serves the southern part of the new area. System 312 and extends eastward until Jiu-Hang Jiayuguan New runs east along National Highway 312, meeting the Road, where it meets the sewer system of Urban Zone Southern Suburb Industrial Zone at Jiu-Huo Road. the southern area of the High-tech Industrial Park. Mainly carries wastewater from the old urban area that exceeds the capacity of the existing treatment plant. This excess wastewater is carried to the No. 2 WWTP through Jiuquan WWTP an overflow pipe, which extends northeast from the Same as Alternative 1. Overflow Pipe existing WWTP until Jiu-Hang Road, where it meets the Southern Suburb Industrial Zone sewer system and continues northward to the No. 2 WWTP. System meets the sewer at the new South Riverside New Area Phase Road and then continues along Huifeng Road before Same as Alternative 1. 2 Development arriving at the No. 2 WWTP. 98

245. Wastewater Pipe Materials. Comparisons were made on 3 types of materials: reinforced concrete, HDPE double wall corrugated, and fiberglass reinforced plastic (Table VI.8). After comparisons of costs, constructability and durability, this project will use HDPE double wall corrugated pipe for pipe diameters 300 mm and smaller, and reinforced concrete pipe for pipe diameters 400 mm and larger.

Table VI.8: Comparison of pipe material alternatives HDPE Double Wall Fiberglass Reinforced Plastic Item Reinforced Concrete Pipe Corrugated Pipe Pipe Unit Price High Medium Low Weight 5% of reinforced concrete pipe 10% of reinforced concrete pipe Very heavy Length of Unit Pipe ＞6 m 6 m and 12 m 3～5 m Roughness 0.009 0.009 0.013 Coefficient Corrosion Good Good Medium Resistance The hot melt is used for pipe The doubled rubber ring is used The joint is subject to damage. connection, which quality is for pipe connection with good Due to the fact that the unit pipe Quality of Pipe good and is not subject to impermeability, which is not is short, the impermeability is Works and damage. The quality of whole subject to damage. The poor. The quality of whole works Maintenance Cost works is guaranteed. The maintenance cost is relatively cannot be guaranteed. maintenance cost is relatively low. Maintenance cost relatively high. low. Environmental Good for groundwater due to Good for groundwater due to Medium Impact less seepage less seepage Service Life 60 years 50 years 60 years Source: Draft FSR

246. Effluent Discharge or Re-use. The practice of effluent re-use is increasing internationally and domestically in response to water scarcity issues. Based on the ADB‘s Urban Wastewater Reuse and Sludge Utilization Policy Study (2010), non-potable re-use applications are most prevalent, including agricultural irrigation, industrial re-use as cooling or process water, and municipal uses (street cleaning, landscape irrigation). Indirect potable re-use such as groundwater recharge and blending with reservoir water is also practiced at a minor level in some regions. The PPTA consultant has examined five alternatives for effluent reuse or discharge in Jiuquan, including: (i) power plant re-use; (ii) street cleaning and landscape irrigation; (iii) agricultural irrigation; (iv) windbreak tree irrigation; and (v) discharge to Beida River. The following section assesses the feasibility of the different reuse options for effluent of the Jiuquan No. 2 WWTP. The different alternatives are compared in Table VI.10.

247. Power Plant Re-use: Effluent from the existing Jiuquan WWTP has already been piped to the new Guodian Jiuquan Power Plant for re-use. Based on operation of the power plant at Phase 1 capacity (2 x 330 MW), the reclaimed water use is 10,000 m3/d. This re-use rate will double with the construction of the Phase 2 generators (2 x 100 MW). According to the agreement between the WWTP and the thermal power plant, the power plant installed a pumping system and 12 km of DN800 mm pipe to deliver approximately 10,000 m3/d of plant effluent to the power plant, where it is treated through a water reclamation plant for re-use as cooling water. With respect to the Jiuquan No. 2 WWTP, according 99

to information gathered from the Jiuquan Energy Bureau by the PPTA consultants, Phase 1 of the proposed Jiugang Mingshawan Power Plant will involve 2 x 600 MW generators, requiring 18,000 m3/d of reclaimed water. The power plant project was submitted to the NDRC in 2009 and is still awaiting approval. In addition, the proposed Jinta Co-generation Power Plant will have 2 x 1,000 MW capacity generators, requiring 30,000 m3/d of reclaimed water. This project has been submitted by the Gansu Provincial DRC to the NDRC for approval. The total reclaimed water demand of the future power plants is therefore 48,000 m3/d, approximately 75% of Jiuquan No. 2 WWTP‘s effluent flow in Phase 1. If the power plants are expanded in the future, it is possible that all of the No. 2 WWTP effluent could be re-used. The proposed locations for the Mingshawan plant and the Jinta plant are 20 km and 12 km from Jiuquan No. 2 WWTP, respectively.

248. Urban Landscape Irrigation or Street Cleaning: Reclaimed water quality for urban landscape irrigation or street cleaning must meet Class 1A effluent standards as listed in PRC‘s Discharge Standard of Pollutants from Municipal Wastewater Treatment Plant (GB 18918-2002) and the Wastewater Reuse Engineering Design Standards (GB 50335-2002). Table VI.9 compares GB 18918-2002 Class 1B standard required for discharging into the Beida River, with Class 1A standard required for effluent re-use, and GB 50335-2002 required for urban landscape irrigation and street cleaning use, with the more stringent standard of the two being applicable. Infrastructure needed will include a wastewater reclamation plant for treating the effluent to Class 1A standard and a reclaimed water distribution system.

Table VI.9: Comparison of GB 18918-2002 and GB 50335-2002 standards for effluent reuse GB 18918-2002 GB 50335-2002 Parameter Class 1B Class 1A Landscape Street Cleaning or Standard Standard Irrigation Use Fire Fighting Use COD (mg/l) ≤ 60 ≤ 50 ------

BOD5 (mg/l) ≤ 20 ≤ 10 ≤ 20 ≤ 15 SS (mg/l) ≤ 20 ≤ 10 ------Oil & grease (mg/l) ≤ 3 ≤ 1 ------Petroleum hydrocarbon ≤ 3 ≤ 1 ------(mg/l) Anionic surfactants (mg/l) ≤ 1 ≤ 0.5 ≤ 1.0 TN (mg/l) ≤ 20 ≤ 15 ------

NH3-N (mg/l) ≤ 8 (15) ≤ 5 (8) ≤ 20 ≤ 10 TP (mg/l) ≤ 1 ≤ 0.5 ------Color (dilution factor) ≤ 30 ≤ 30 pH 6 – 9 6 - 9 Fecal coliform bacteria ≤ 104 ≤ 103 ------(count/l) Total coliform bacteria ------≤ 3 --- (count/l) Odor ------Not unpleasant 100

GB 18918-2002 GB 50335-2002 Parameter Class 1B Class 1A Landscape Street Cleaning or Standard Standard Irrigation Use Fire Fighting Use Turbidity (NTU) ------≤ 10 Total dissolved solids (mg/l) ------≤ 1000 ≤ 1500 Dissolved oxygen (mg/l) ------≤ 1.0 --- 30 minutes after contact ≥ 1.0; Total chlorine (mg/l) ------End of distribution system ≥ 0.2

249. Agricultural Irrigation: Use of reclaimed WWTP effluent for agricultural irrigation is a good solution to the water scarcity issues in the region. Reclaimed water for crop irrigation must meet GB 18918-2002 Class 1A standards according to the Jiuquan EPB (see Appendix 2). Since crops will directly affect food safety and human health, maintaining the required water quality is crucial for this alternative. A wastewater reclamation plant is therefore needed. The reclaimed water irrigation area should cover farms downstream of the Jiuquan No. 2 WWTP and the wastewater reclamation plant in the Beida River watershed. Reclaimed water will flow by gravity through open channels or pipes to the farms. According to data provided by the PMO, there are over 400 km2 of farmland downstream of the WWTP (until reaching the border of the Yuanyang Irrigation Area). Typically, irrigation water use is 2-5 m3/s, or 170,000 – 430,000 m3/d. At these flow rates, it is clear that the reclaimed water flow will make only a minor contribution to the overall flow, and can only provide a portion of the irrigation water for the area.

250. Windbreak Tree Irrigation: Using reclaimed water for irrigation of windbreaks, or shelterbelts, is a good solution to the water scarcity issues of the region. Similar to the other alternatives, the reclaimed water quality must meet Class 1A effluent standards. According to the Jiuquan Urban Master Plan (2011-2030), the windbreaks are distributed on the two banks of the Beida River to protect the urban area from sandstorms from the north. The planned windbreak tree plantation area in this project is 60.5 ha and the irrigation water demand for this area is 1,053,421 m3/a. Assuming this demand is spread over eight months of the year, the daily average demand is 4,330 m3/d. Assuming a seasonal peaking factor of 1.5, the maximum daily demand is 6,500 m3/d. Infrastructure needs will be similar to those for urban landscape irrigation except that the distribution system will be dedicated to the windbreak tree plantation area.

251. Discharge to Beida River: Direct discharge of treated effluent to the Beida River is convenient given the proximity of the WWTP to the River. According to data from the Jiayuguan hydrological station, the minimum flowrate in the Beidahe River in 2010 was 7.07 m3/s. In phase I, the WWTP will discharge 60,000 m3/d, or 0.69 m3/s, which means the minimum dilution factor is 10.24. Theoretically, as long as the plant effluent is sufficiently mixed with the river water, any residual contaminants will be adequately diluted, causing very little pollution to the river.

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Table VI.10: Comparison of effluent reuse alternatives Factor Alternative 1 Alternative 2 Alternate 3 Alternative 4 Alternate 5 As cooling Urban landscape Agricultural Windbreak tree Discharge into Reuse water in future irrigation and irrigation irrigation Beida River power plants street cleaning Reclaimed water quality/ WWTP Class 1B Class 1A Class 1A Class 1A Class 1B effluent quality requirement Reuse potential: - Daily 48,000 m3/d 20,000 m3/d 60,000 m3/d 4,500 m3/d 60,000 m3/d - Yearly 17.3 mio m3/y 3.6 mio m3/y 9.0 mio m3/y 1.1 mio m3/y 21.6mio m3/y - Reuse period 12 months/y 6 months/y 5 months/y 8 months/y 12 months/y

- Percentage of 80% 17% 42% 5% 100% yearly WWTP effluent that can be reused 20km pressure Reclaimed water piping, 72 km of pressure 30 km of gravity 54 km of distribution financed by piping, financed piping, financed pressure piping, None system power plant by city by city financed by city

CNY112.2 million, by CNY 83.1 million, CNY 60.7 CNY 72.0 Capital Costs None power plant by city million, by city million, by city operators O&M costs CNY 0.80/m3 CNY0.90/m3 CNY0.65/m3 CNY0.85/m3 0 Approximately Financial benefits Undetermined Undetermined Undetermined None CNY0.7/m3 Management Simple Complex More complex More complex Simple Environmental Indirect (return Good Good Very good Good benefits waters) Overall + very high - WWTP effluent - WWTP effluent - water quality + WWTP assessment: (80%) reuse must meet class must meet class must meet class effluent must strengths (+) and potential; 1A; 1A; 1A; only meet class weaknesses (-) + reuse - low (17%) - high QA/QC - high energy 1B; throughout effluent reuse needed to consumption + no seasonal year possible; potential with high ensure public and transport impact on + lower WWTP seasonal health; costs for option; effluent quality variability; - high seasonal pumping; + no capital and requirements - high energy variability in - very low (5%) O&M costs; (class 1B); consumption and reuse potential; effluent reuse - indirect + capital costs transport costs for + gravity piping potential with environmental covered by pumping; possible high seasonal benefit only; power plant - high QA/QC variability operator; needed to ensure - effluent public health; pumping needed

Source: PPTA Interim Report

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252. Based on this alternative analysis, the project decided to apply Alternative 5 (discharge to Beida River) for the short term, and Alternative 1 (reuse as cooling water) for the mid- to long-term. Effluent reuse as cooling water for the Jiugang Mingshawan Power Plant and the Jinta Co-generation Power Plant has the highest potential and is given main priority by local authorities. The Jiuquan Energy Bureau, in a letter to the JPMO dated July 19, 2012, confirmed its intension to use treated effluent (class 1B) from the Jiuquan No. 2 WWTP at the two power plants mentioned above (subject to approval by NDRC). Infrastructure needed for effluent conveyance to and further treatment at these power plants would be borne by the power plants. Effluent re-use as cooling water for power plants has the advantage of year round use, compared to the other alternatives.

253. Until the two power plants are constructed and reclaimed water transport and treatment system is implemented and operational, the effluent from Jiuquan No. 2 WWTP will be discharged to the Beida River. This option will also remain in place after completion of water reclamation scheme as alternative system in case of malfunction or effluent surplus. A long term sustainable wastewater reuse plan including the interim measures will be developed during project implementation with the support of loan consultants.

254. Sludge disposal or reuse. The JMG is committed to promote beneficial sludge utilization. A sludge treatment and disposal/reuse feasibility study is currently being conducted by a local design institute. The study will include the treatment of dewatered sludge (75-80% water content) from both the existing WWTP (19 t/d) and the proposed plant (27 t/d), totaling 46 t/d of dewatered sludge. The sludge treatment and disposal facility will be built near the proposed No. 2 WWTP, and is currently in the technical research phase. In the framework of the feasibility study, different alternatives for disposal or reuse of treated WWTP sludge and their applicability to Jiuquan are being analyzed, including (i) land application; (ii) use as daily landfill cover; (iii) incineration; (iv) use as construction material; and (v) use as alternative fuel in cement kilns. The analysis of these alternatives revealed that sludge incineration, use as construction material, and use as alternative fuel are not feasible in Jiuquan and will not be further investigated. At current stage of project preparation, land application will be preferred reuse option for sludge from the No. 2 WWTP, along with use as daily landfill cover material. These two options are further discussed below.

255. Land application: Practice has proven that land application of WWTP sludge is effective for improving soil conditions by increasing water holding capacity, improving drainage and aeration, and reducing the need for pesticides. In addition, WWTP sludge typically contains high levels of organic compounds, nitrogen, and phosphorus, as well as trace elements such as potassium, which are important plant nutrients, making the treated sludge suitable for use as fertilizer. While vegetation is scarce in Jiuquan, the city is planning to complete 184 hectares of urban landscaping within the next 3 to 5 years. While WWTP sludge may be suitable as a soil conditioner and/or fertilizer for these areas, proper removal of heavy metals and pathogens is a key condition that must be met. Sampling and analysis results of the sludge from the existing Jiuquan WWTP show that none of the analyzed parameters exceeded the maximum limits defined in the PRC quality standard for municipal WWTP 103

sludge use in landscaping (GB/T23486-2009). More comprehensive sludge quality analysis prior to and during sludge reuse for landscaping would be required, should this option be selected.

256. Sludge landfilling (landfill cover): Although sludge from the proposed WWTP is not hazardous, landfilling of the sludge is a waste of resources requiring significant landfill space. From both a technical and economic point of view, it makes more sense to reduce the volume of the sludge, and then stabilize it for use as daily landfill cover material. This is a feasible option as long as the sludge is treated to the Quality Standards for Municipal WWTP Sludge Treatment (GB/T23485-2009).

257. Windbreak Tree Irrigation. Three water sources for windbreak tree irrigation were considered: effluent re-use, municipal water supply and Taolai River water. The piping cost for effluent re-use was found to be too high and the use of municipal water supply would deplete valuable potable water source in this arid area. The use of Taolai River water was selected. Four irrigation techniques were also compared: U-channel, low pressure pipe, drip irrigation and sprinkler irrigation. Table VI.11 shows the ranking (higher number means better performance) and drip irrigation was selected since it requires the least water, energy, labor and land compared to the others.

Table VI.11: Comparison of scoring on windbreak tree irrigation techniques Low-pressure Sprinkler U-channel Drip irrigation pipe irrigation Water saving 1 2 4 3 Energy saving 3 2 4 1 Labor saving 1 2 3 3 Land saving 1 2 3 3 One-time capital investment 1 2 3 4 Source: Draft FSR

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VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Legislative Framework for Consultation, Participation and Information Disclosure

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

259. Information disclosure and public consultation have been conducted during preparation of the FSRs, domestic EIR and the IEE. Information disclosure and consultation included: internet/newspaper disclosure, informal communication with key stakeholders which include residents, local authorities and sector specific institutions and authorities; a questionnaire survey; and a wider meeting attended by affected people and other concerned stakeholders.

B. Information Disclosure

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

Table VII.1: Summary of Information Disclosure 1st Information Disclosure 2nd Information Disclosure Date Location Posted Date Location Posted Feb 24, 2012 Jiuquan Daily News May 22, 2012 Jiuquan Daily News Source: Domestic EIR

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C. Consultation and Participation during Project Preparation

261. Two rounds of consultation and participation were conducted during project preparation: at domestic EIR commencement and on completion of the draft domestic EIR.

262. First Round of Consultation and Participation. The first round was conducted on February 24, 2012 for the road and bridge component, and on May 22, 2012 for the wastewater component when the environmental impact assessments for these components were just started. A public notice was published in the Jiuquan Daily News and questionnaire surveys were conducted with stakeholders. The purpose was to solicit public concerns related to this project, so that such concerns could be adequately addressed in the EIR. A total of 200 survey forms were issued with 193 survey forms received, a recovery rate of 96.5%. Of the 193 forms recovered, 173 were from individuals and 20 were from government departments. Of the 173 individuals, 112 were males (64.7%) and 61 were females (35.3%) dominated by the 30-55 age group (76.3%), government employees (56%) and workers (19%).

263. Government departments consulted include the following: Jiuquan EPB, Taolai River Basin Water Resources Management Bureau of the Gansu Provincial Water Bureau, Jiuquan Water Bureau, Jiuquan Land Resources Bureau, Jiuquan Development and Reform Commission, Jiuquan Statistics Bureau, Jiuquan Housing Estate Management Bureau, Jiuquan Financial Bureau, Jiuquan Cultural Heritage Bureau, Jiuquan Economic Development Financial Management Center, Jiuquan Food Bureau, Jiuquan Agricultural Resources Bureau, Jiuquan City Records Bureau, Jiuquan Population and Family Planning Committee, Jiuquan Energy Bureau, Jiuquan Building Agent Office, and the Jiuquan Survey Team of the State Statistics Bureau.

264. Of the 173 individuals and 20 government departments surveyed, 94% of the individuals and 90% of the government departments were aware of the proposed project. Approximately 78% of the surveys ranked the existing environmental conditions from fair to good, with major environmental problems being ecological damages, solid waste pollution, air pollution, water pollution, followed by noise pollution. During the construction stage, major environmental concerns expressed included ecological damages, solid waste pollution, air pollution, noise pollution, followed by water pollution. During the operational stage, major environmental concerns expressed included noise pollution, solid waste pollution, ecological damages, air pollution, followed by water pollution. Survey results also indicated that most emphasized the need to strengthen environmental protection and implement environmental mitigation measures according to the EIR during the construction stage. All these considerations have been included as mitigation and management measures in subproject designs and in the EMP.

265. Second Round of Consultation and Participation. The second round of public consultation and participation was conducted on July 18, 2012 after the draft EIR was completed. It was conducted in form of a public forum by invitation. Over 100 stakeholders were invited and 96 attended. A consultation pamphlet was provided to explain the project content and highlights on the benefits, potential impacts and mitigation measures on the project.

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266. Of the 96 attendees, 13 (13.5%) were from government departments or government owned enterprises, 3 (3.1%) were members of the Jiuquan People‘s Congress, 2 (2.1%) were members of Jiuquan‘s Chinese People's Political Consultative Committee, and 2 (2.1%) were non-party democratic representatives. The others 76 participants (79%) were members of the community, including 44 (45.8%) female members, 22 (22.9%) poor urban residents, 5 (5.2%) physically disabled people, and 5 (5.2%) students from the Jiuquan Middle School. Those from the government and government owned enterprises represented the Suzhou District Government, Jiuquan Development and Reform Commission, Jiuquan Construction Bureau, Jiuquan Land Resources Bureau, Jiuquan Water Bureau, Jiuquan Finance Bureau, Jiuquan Planning Bureau, Jiuquan Education Bureau, Jiuquan EPB, Jiuquan Transport Bureau, Jiuquan Home Affairs Bureau, Jiuquan Urban Investment and Development Company, and the Jiuquan Housing Management Bureau.

267. At the forum, the JPMO first introduced the project background and ADB funding scope. The LDI that prepared the draft EIR then presented the EIR findings including benefits, potential impacts and the corresponding mitigation measures, and also explained the proposed grievance redress mechanism (GRM). Key questions and issues raised by forum participants, and the project team‘s responses to these questions and concerns, are summarized in Table VII.2 below.

Table VII.2: Questions and issues raised during the consultation forum, July 18, 2012 Question/Issue raised Response Will the project roads allow motor According to information provided by the Transport Bureau, the project roads are vehicles carrying dangerous goods? classified as urban roads and no large motor vehicle carrying dangerous goods will be allowed to travel on these roads. Where will the sludge and Based on information from the existing WWTP, the heavy metal content in the wastewater go after the WWTP is sludge meets the requirement for agricultural re-use. Should the future sludge operational? meet such standard through chemical testing, it will be used for soil conditioning at the windbreak tree plantations. Should the chemical testing results show non-compliance with this agricultural re-use standard, the sludge will be disposed of at the sanitary landfill after treatment at the WWTP site. The wastewater will be treated to Class 1B effluent standard then discharged to the Beida River. In the mid to long-term, effluent will be reused as cooling water in combined heat and power plants. The WWTP is only 500 m from the The Quanhu Village is upwind of the predominant wind direction. WWTP siting has Quanhu Village, is it possible to been compared and verified. EIR finding also showed that 500 m is more than the move it further eastward? buffering requirement for the WWTP. Strict environmental protection measures will be enforced during WWTP implementation and operation to minimize potential impacts, to be confirmed by environmental monitoring that it meets environmental standards. Will construction traffic cause Temporary traffic management will be adopted during the construction stage to congestions or road diversions? sensibly plan transport routes of construction traffic, to avoid travelling during peak traffic hours, and to have covers on vehicles transporting earth materials for reducing traffic and dust impacts.

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The WWTP will have to treat The local EPB has strict supervision and management measures on industrial industrial wastewater, will this cause discharges. Industries must have pre-treatment facilities to comply with their exceedance of effluent standard in corresponding discharge standards. Industrial discharge should comply with the the discharge? discharge standards and therefore should not cause impact on the WWTP. Resettlement is an important issue. The municipal government regards resettlement with high importance and has Will adequate compensation be done much work to assure that compensation measures are in place. guaranteed for land acquisition and Resettlement plans have been prepared and will be revised and finalized based on resettlement? final project design. Can the WWTP operate normally The present management system is effective. The WWTP conducts daily influent after it is built? and effluent water quality monitoring. The EPB also has regular monitoring. For industrial wastewater, the EPB will conduct supervision and enforcement to control pollution at source so that industrial wastewater discharge standards are met. Will the windbreak tree plantations Barrier-free facilities will be considered during detailed design. The requirement have barrier-free facilities (for will be included as loan assurance. handicapped people)? Short term construction stage Construction of the project will bring some short-term impacts and this will need the impacts could be tolerated. public‘s understanding and support. Regardless of short term or long term impacts, Hopefully, long term impacts could the project design will adopt adequate mitigation measures to ensure that any be well controlled. potential impact will be reduced to the minimum. Source: EIR

D. Future Plans for Public Participation

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

269. Future consultation and participation will also include (i) involvement of affected people during inspection and monitoring of EMP implementation during construction and operation phases; (ii) participatory evaluation on the environmental and social-economic benefits and impacts; and (iii) consultation with the public after the project completion. The EMP has accordingly provided plans for future public participation. The EMP for this project is included as Attachment A to this report.

270. The project‘s environmental information will be disclosed by ADB as follows: (i) This IEE will be available for review at www.adb.org before ADB Board consideration; (ii) Copies of the domestic EIR (in 108

Chinese) are available on request at the JPMO; and, (iii) Environment progress and monitoring reports will be prepared on an annual basis and will be disclosed on ADB‘s project website (www.adb.org).

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VIII. GRIEVANCE REDRESS MECHANISM

271. Public participation, consultation and information disclosure undertaken as part of the local IEE process, assessment and development of resettlement plans, and consultations undertaken by the project consultants have discussed and addressed major community concerns. Continued public participation and consultation has been emphasised as a key component of successful project implementation. As a result of this public participation and safeguard assessment during the initial stages of the project, major issues of grievance are not expected. However, unforeseen issues may occur. To settle such issues effectively, a transparent grievance redress mechanism (GRM) for lodging complaints and grievances has been defined for environment related issues.

272. In addition to serving as a platform to resolve grievances, the GRM has been designed to help achieve the following objectives: (i) open channel for effective communication, including the identification of new environmental issues of concern arising from the project; (ii) prevent and mitigate any adverse environmental impacts on communities caused by project implementation and operations; (iii) improve mutual trust and respect and promote productive relationships with local communities; and (iv) build community acceptance of the project.

273. The GRM will be accessible to diverse members of the community, including more vulnerable groups such as women and youth. Multiple points of entry and modes of access, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. Opportunities for confidentiality and privacy for complainants will be honored where this is seen as important. The details of the GRM are described in the EMP (Attachment A). The GRM will be operational prior to commencement of construction works.

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IX. ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

274. The environmental management plan (EMP) for the Project is presented in Attachment A. The EMP defines mitigation measures and describes the involved institutions or mechanisms to monitor and ensure compliance with environmental regulations and implementation of the mitigation measures. Such institutions and mechanisms will seek to ensure continuously improving environmental protection activities during preconstruction, construction, and operation of the project in order to prevent, reduce, or mitigate adverse impacts. The EMP draws on the domestic EIR and on the PPTA discussions and agreements with the relevant government agencies. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final detailed design. The updated EMP will be disclosed on ADB‘s project website.

B. Organizational Structure for Environmental Management

275. As Executing Agency (EA), the Jiuquan municipal government (JMG) will be responsible for the overall implementation and compliance with loan assurances and the EMP (including Environmental Monitoring Plan). The EA has established a Jiuquan Project Management Office (JPMO), who will be responsible, on behalf of the EA, for the day-to-day management of the project. The JPMO will have the overall responsibility delegated by the EA for (amongst others) for supervising the implementation of environment mitigation measures, coordinating the project level Grievance Redress Mechanism (GRM) and reporting to ADB. JPMO will engage the technical engineering design institutes, project implementation consultants, and manage the procurement process. The JPMO will appoint one environment specialist in charge to supervise the effective implementation of the EMP and to coordinate the Project level GRM. In addition, the JPMO will prepare annual environment progress reports and submit them to ADB.

276. Jiuquan Economic Development and Investment Company (JEDIC) will be the implementing agency (IA) for the Project. JEDIC will assume the debt servicing responsibility as the end-user of the ADB loan. It will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. JEDIC will ensure that the EMP is carried out, and respond to any adverse impact beyond those foreseen in the IEE. JEDIC will also attend to requests from relevant agencies and ADB regarding the mitigation measures and monitoring program. JEDIC will nominate dedicated, trained, and qualified environment specialists to (i) supervise contractors and ensure compliance with the EMP; (ii) conduct regular site inspections; (iii) coordinate periodic environmental impact monitoring in compliance with the approved monitoring plan17; (iv) act as

17 The Jiuquan environmental monitoring station (under the Jiuquan environmental protection bureau) will be contracted by JEDIC to conduct environment impact monitoring. 111

local entry point for the project grievance redress mechanism (GRM); (vi) submit quarterly monitoring results to the contractors for information, and to the JPMO and JEPB for verification and confirmation.

277. To ensure that contractors comply with the EMP‘s provisions, the JPMO and IA will prepare and provide the following specification clauses for incorporation into the bidding procedures: (i) a list of environmental management and monitoring requirements to be budgeted by the bidders in their proposals, (ii) environmental clauses for contractual terms and conditions, and (iii) full IEE and EMP for compliance.

278. Environmental training will be essential for the JPMO, IA and contractors to implement the EMP. The JPMO, with the support of the environmental management consultant, will be responsible for organizing training programs, which will cover (i) environmental laws, regulation, and policies; (ii) implementing mitigation measures; (iii) environmental technologies and procurement; (iv) environmental monitoring, and supervision; and (v) documentation and reporting.

C. Inspection, Monitoring and Reporting

279. Environmental impact monitoring and reporting. Environment impact monitoring will include monitoring of air quality, noise, water quality and other parameters described in the EMP. During construction, regular monitoring will be conducted by a licensed environment monitoring station (EMS), contracted by JEDIC. During operation, the O&M units of the project facilities will contract the EMS to conduct environmental impact monitoring. The monitoring results will be submitted to the JPMO and JEDIC, and will be reported in the annual environmental monitoring reports by the JPMO to ADB. Environmental impact monitoring will also be periodically conducted by the local environmental authorities in the framework of their legal mendate to check compliance with applicable environmental regulations. They will be responsible for undertaking regular and random environmental monitoring and inspection activities before, during, and after construction as well as in the event of emergencies.

280. EMP compliance verification and reporting. EMP compliance monitoring/verification will be undertaken by the JPMO, with support of the loan implementation environment consultant (LIEC). The JPMO will report to ADB the progress of the EMP, information on project implementation, environmental performance of the contactors, and environmental compliance through quarterly project progress reports and annual EMP progress and monitoring reports. Quarterly progress reports by the JPMO to ADB will include a summary of EMP implementation progress and compliance. The LIEC will support the JPMO in developing the annual reports. The report should confirm the project‘s compliance with the EMP, local legislation such as EIA requirements, and identify any environment related implementation issues and necessary corrective actions, and reflect these in a corrective action plan. The performance of the contractors will also be reported on with respect to environmental protection and impact mitigation. The operation and performance of the project GRM, environmental institutional strengthening and training, and compliance with all covenants under the project will also be included in the report.

281. Moreover, within three months after each component completion, or no later than 1 year with 112

permission of the JEPB, environmental acceptance monitoring and audit reports of each component completion shall be: (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Regulation on Project Completion Environmental Audit (MEP, 2001), (ii) reviewed for approval of the official commence of individual component operation by environmental authorities, and (iii) finally reported to ADB. The environmental acceptance reports of the component completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations.

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X. CONCLUSIONS AND RECOMMENDATIONS

A. Expected Project Benefits

282. Some 300,000 residents will benefit both directly and indirectly from the project. Indirect benefits will arise from the boost that improved infrastructure will give to economic development in general. This economic growth will create new jobs that will be particularly beneficial to the poor. The direct benefits will be a significantly improved urban living environment. It is anticipated that the project will create at least 6,100 temporary project construction jobs, around 620 days of unskilled work planting trees, and a number of additional permanent road sanitation jobs. Residents are also hopeful that the new road development will provide the opportunity for establishing small businesses along the riverside roads. The project will also maximize the benefits of improved infrastructure by encouraging behavioral change with respect to water conservation and road safety, and endeavor to facilitate the Pricing Bureau‘s public consultation over tariff setting. There may also be some minor health benefits from the windbreaks and improved wastewater disposal.

283. This project will add approximately 16 km of trunk roads and two bridges to the transport network in Jiuquan, improving connectivity among its old and new development areas and with Jiayuguan. It will remove 60,000 m3/d of untreated wastewater from discharging into the Beida River and the desert, resulting in pollutant load reductions of 15,768 t COD, 6,658 t BOD5, 7,709 t SS, 1,051 t

NH3-N, 1,205 t TN and 197 t TP each year. By 2020, the wastewater treatment rate will be improved from the now 70% to 90%, benefiting a population of 459,000 compared to 185,000 now. The treated effluent from the WWTP will provide opportunities for re-use as power plant cooling water, thus reducing the demand on surface or ground water.

284. Windbreak tree plantations will reduce the speed of wind and intercept the sand in sandstorms, thereby reducing the surface damage caused by sandstorms. Based on information provided by the Jiuquan Forestry Bureau, an intact windbreak (forest shelterbelt) could reduce the wind speed of up to 31 m/s outside the windbreak to 22 m/s within the windbreak protected area; at 2 m height the wind speed within a forest could be reduced by 30 – 50% from that outside the forest; and near the ground surface the wind speed could decrease by more than 70%.

285. While total GHG emissions will increase as a result of urban development, population growth and traffic increase, the project will contribute to slower the pace of emission increases. Improved road conditions and smoother traffic flow at higher speed would result in less carbon emissions per vehicle per mile travelled compared to congested roads with stop-and-go traffic, where CO2 emission factors for gasoline motor vehicles would decrease from approximately 500 gm CO2/mi to approximately 250 gm

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18 CO2/mi when the vehicle speed increases from 25 mph to 75 mph (Bai, Eisinger and Niemeier 2009) . Trees planted for windbreak will sequester carbon. It was estimated that the approximately 62 ha of windbreak trees planted in this project would sequester approximately 2,700 t of CO2 per year. Based on the photosynthesis reaction equation, fixing 2,700 t CO2 would release approximately 2,000 t of oxygen

(O2), meeting the oxygen demand of 7,000 people for one year and contributing to better air quality. Design and operation of the No. 2 WWTP will include energy conservation measures, which will help minimizing GHG emissions from WWTP operation.

B. Adverse Impacts and Mitigation Measures

286. This project will permanently resume approximately 60 ha of land, which is an irreversible impact. Compensation and resettlement will fully meet the PRC and ADB applicable policies and requirements. No rare, threatened, or protected species has been recorded in the project areas. No physical cultural resources would be affected by this project.

287. During construction, dust from construction sites, noise from power mechanical equipment, wastewater and solid wastes generated on construction sites, and construction traffic are the main adverse impacts. Good housekeeping and effective mitigation measures will be implemented to reduce these impacts to acceptable levels. The temporary land take areas upon completion of the construction stage will be vegetated and landscaped.

288. Impacts during operation include traffic noise and motor vehicle emissions, odor from the WWTP, discharge of treated wastewater into the Beida River and disposal of wastewater sludge and solid waste such as spent UV lamps for wastewater disinfection. A buffer distance of at least 15 m from the road red line for road side developments in the future is required to safeguard against future environmental impacts due to traffic volume growth. Wastewater will be treated to Class 1B standard and should have minimal impact on the water quality of Beida River. Effluent re-use for power plant cooling has been committed by the JMG to further reduce water quality impact. JMG is committed to resolve the treatment, re-use and disposal of wastewater sludge generated from existing and future WWTPs in Jiuquan. A feasibility study has been commissioned and is currently being drafted, whereas beneficial sludge utilization (for urban landscaping purposes) will be promoted. Interim measures for dealing with the wastewater sludge have been defined until the central sludge treatment facility becomes operational. .

289. Based on information gathered and assessments performed by the domestic EIA institute, it is concluded that environmental impacts during the construction and operational stages of the project would be acceptable and in compliance with PRC regulations and standards and ADB‘s Safeguard Policy Statement (2009) if the prepared EMP is implemented and monitored diligently. The EMP defines mitigation measures and monitoring requirements for the design, construction, and operational stages

18 Bai S., D. Eisinger and D. Niemeier. 2009. MOVES vs. EMFAC: a comparison of greenhouse gas emissions using Los Angeles County. Transportation Researh Board 2009 Annual Meeting. 15 pp. 115

of the project. It is an appropriate environmental safeguard for the planned works and forms part of a comprehensive set of project management documents.

C. Risks and Assurances

290. The project has no unusual technical risks and conventional engineering designs with proven reliability and performance will be adopted for all the infrastructure components. From an environment safeguards point of view, the main risk relates to the failure of the JPMO, JEDIC and O&M units to monitor environmental impacts and implement the EMP during construction and operational stages. This risk will be mitigated by (i) providing training in environmental management under the project; (ii) appointing qualified project implementation consultants, (iii) following appropriate project implementation monitoring and mitigation arrangements, (iv) ADB conducting regular project reviews; and (v) project assurances covenanted in the loan and project agreement with ADB.

291. General and specific environmental project assurances are required to ensure that the project can achieve its envisaged outcome. The following section defines the assurances that will be included in the loan and project agreements.

292. JMG shall, and shall cause JEDIC to ensure that the preparation, design, construction, implementation, operation and decommissioning of the project and all project facilities comply with (a) all applicable laws and regulations of the PRC and Gansu Province relating to environment, health and safety; (b) the Environmental Safeguards stipulated in ADB‘s Safeguards Policy Statement (2009); and (c) all measures and requirements set forth in the IEE, the EMP, and any corrective or preventative actions set forth in a safeguards monitoring report.

293. Throughout project implementation, JMG and JEDIC will review any changes to the project design that may potentially cause negative environmental impacts, and in consultation with ADB, revise environmental monitoring and mitigation measures as necessary to assure full environmental compliance. JMG will provide ADB within 60 days, justification for any proposed changes to the mitigation measures required during design, construction and operation, if any changes to the IEE must be implemented for safety or emergency reasons.

294. JMG will cause JEDIC and Jiuquan PMO to ensure that an adequate number of full-time personnel and sufficient resources are provided to monitor the implementation of the environmental monitoring program. Furthermore, JMG shall, and shall cause JEDIC and the Jiuquan PMO to ensure that (a) environment management consultants are engaged in a timely manner; (b) a licensed environmental monitoring institute/consultant is contracted to conduct periodic environmental monitoring in accordance with the approved monitoring plan; and (c) the capacity-building program described in the EMP is implemented as planned from the date of engagement of the consultants until project completion.

295. JMG will cause the Jiuquan PMO to submit annual safeguards monitoring reports during 116

construction and operation of project facilities until the project post-review to be carried out by ADB, to ADB for review and disclose relevant information from such reports to affected persons promptly upon submission.

296. JMG will ensure that no proceeds of the Loan are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the Safeguards Policy Statement.

297. JMG will ensure that, within 2 months of loan effectiveness, a grievance redress mechanism, acceptable to ADB and in accordance with the PAM, is established and functioning effectively to (a) review and document eligible complaints of project stakeholders; (b) proactively address grievances; (c) provide the complainants with notice of the chosen mechanism/action; and (d) prepare periodic reports to summarize (i) the number of complaints received and resolved, (ii) chosen actions, and (iii) final outcomes of the grievances and make these reports available to ADB.

298. JMG shall, and shall cause JEDIC to ensure that all bidding documents and contracts for civil works contain provisions that require contractors to:

(i) comply with the measures relevant to the contractor set forth in the IEE, the EMP and the RP (to the extent they concern impacts on affected persons during construction), and any corrective or preventative actions set forth in a safeguards monitoring report; (ii) make available a budget for all such environmental and social measures; (iii) provide the IA and the JPMO with a written notice of any unanticipated environmental, or resettlement risks or impacts that arise during construction, implementation or operation of the project that were not considered in the IEE, the EMP and the resettlement plan; (iv) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; (v) take necessary actions to minimize the impact of interruptions to water supply, wastewater collection, heating, electricity and other utility services during the construction of the project; and (vi) reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction.

299. Without limiting the application of the Involuntary Resettlement Safeguards or the resettlement plan, JMG and JEDIC will ensure that no economic displacement takes place in connection with the Project until a comprehensive income and livelihood restoration program has been established in accordance with the RP to enhance, or at least to restore, the livelihoods of all affected persons in real terms relative to pre-project levels and to improve the standards of living of the poor and other vulnerable groups.

300. JMG will ensure and will cause JEDIC to ensure that as an interim measure, a sludge drying bed at the WWTP will be properly designed with leachate collection for air drying the sludge to a moisture content of less than 60% before disposal to the sanitary landfill. JMG shall ensure that regular sampling tests are carried out for the sludge from the existing and the new WWTP in Jiuquan on a 117

quarterly basis until approval of the project completion report to determine its suitability, through compliance with the Borrower's applicable standards for either disposal to a sanitary landfill or for beneficial use (urban landscaping). Based on the results of such regular sampling tests, JMG shall, and shall cause JEDIC to confirm the design for the planned sludge treatment facility.

301. JMG shall cause industries discharging industrial wastewater to the public sewer network to meet the relevant discharge standard. Furthermore, JMG will ensure that the Jiuquan No. 2 wastewater treatment plant will have its critical units connected to a standby generator in case of power shutdown.

302. JMG will ensure that the commitment to re-use the treated effluent from the WWTP as cooling water for power stations is carried out.

303. JMG will ensure and cause the Suzhou District Forestry Bureau to ensure that only water from the Taolai River will be used for irrigating the windbreak tree plantations from this project.

304. JMG will cause the Jiuquan Construction Bureau to cooperate with all relevant agencies to promote public transport and non-motorized traffic (NMT) and traffic safety provisions for all roads and bridges constructed under the Project, including the provision of public transport and NMT, adequate traffic and safety signage, signal lamps, median separators, traffic control, barrier free facilities allowing access for disabled people, and other necessary facilities.

305. JMG shall, and shall cause JEDIC to ensure that (a) emergency preparedness and response mechanisms are developed for the project in compliance with relevant PRC regulations and the EMP; and (b) the emergency preparedness and response mechanisms are incorporated into the emergency preparedness and response system of JMG and concerned agencies of Jiuquan.

D. Overall Conclusion

306. The domestic EIR and this IEE conclude that all identified environmental impacts can be mitigated to acceptable levels if the measures defined in the EMP are carefully implemented and monitored. The project is feasible from an environment safeguards point of view. Category B for environment is justified.

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APPENDIX A

ENVIRONMENTAL MANAGEMENT PLAN

People’s Republic of China: Gansu Jiuquan Integrated Urban Environment Improvement Project

Prepared by the Jiuquan Municipal Government for the Asian Development Bank (ADB)

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A. Introduction

1. This Environmental Management Plan (EMP) is developed for the Gansu Jiuquan Integrated Urban Environment Improvement Project (the project) and defines all potential impacts of the project components and the mitigation and protection measures with the objective of avoiding or reducing these impacts to acceptable levels. The EMP also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the EMP. The EMP seeks to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP draws on the findings of the project IEE, the domestic EIR, PPTA and ADB review mission discussions and agreements with the relevant government agencies.

2. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final technical design. The updated EMP will be disclosed on the ADB project website and included in the Project Administration Manual (PAM). The updated EMP will also be included as a separate annex in all bidding and contract documents. The contractors will be made aware of their obligations to implement the EMP, and to budget EMP implementation costs in their proposals.

3. Environmental monitoring results will be used to evaluate (i) the extent and severity of actual environmental impacts against the predicted impacts, (ii) the performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts, and (iv) overall effectiveness of the project EMP.

B. Institutional Responsibilities related to EMP implementation

4. As Executing Agency (EA), the Jiuquan municipal government (JMG) will be responsible for the overall implementation and compliance with loan assurances and the EMP (including Environmental Monitoring Plan).

5. The EA has established a Jiuquan Project Management Office (JPMO), who will be responsible, on behalf of the EA, for the day-to-day management of the project. The JPMO will have the overall responsibility delegated by the EA for (amongst others) supervising the implementation of environment mitigation measures, coordinating the Project level Grievance Redress Mechanism (GRM) and reporting to ADB. JPMO will engage the technical engineering design institutes, project implementation consultants, and manage the procurement process. To ensure that the contractors comply with the EMP provisions, JPMO with the help and technical support of Loan Implementation Environmental Consultant (LIEC), will prepare and provide the following specification clauses for incorporation into the bidding procedures: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals; (ii) environmental clauses for contractual terms and conditions; and (iii) major items in the IEE and EMP. The JPMO will appoint one environment specialist in charge to supervise the effective implementation of the EMP and to coordinate the Project level GRM. In addition, the JPMO will prepare annual environment progress reports and submit them to ADB.

6. Jiuquan Project Leading Group (JPLG). The JPLG has been established for the Project. The JPLG is chaired by the vice-mayor of Jiuquan and comprises senior officials from

A-2 relevant government agencies, to facilitate inter-agency coordination, and resolve any institutional problems affecting project implementation at municipal level.

7. Implementing Agency (IA). Jiuquan Economic Development and Investment Company (JEDIC) will be the IA for the Project. JEDIC will assume the debt servicing responsibility as the end-user of the ADB loan. It will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. JEDIC will ensure that the EMP is carried out, and respond to any adverse impact beyond those foreseen in the IEE. JEDIC will also attend to requests from relevant agencies and ADB regarding the mitigation measures and monitoring program. JEDIC will nominate dedicated, trained, and qualified environment specialists to (i) supervise contractors and ensure compliance with the EMP; (ii) conduct regular site inspections; (iii) coordinate periodic environmental impact monitoring in compliance with the approved monitoring plan1; (iv) act as local entry point for the project grievance redress mechanism (GRM); (vi) submit quarterly monitoring results to the contractors for information, and to the JPMO and JEPB for verification and confirmation.

8. Construction contractors will be responsible for implementing the mitigation measures during construction under supervision of the JEDIC and the JPMO. Contractors will also conduct frequent monitoring of noise and dust around construction sites. In their bids, contractors will be required to respond to the environmental management requirements defined in the EMP. Each contractor will be required to develop site specific EMPs and will assign a person responsible for environment, health and safety. After project completion, environmental management responsibilities will be handed over to O&M units.

9. Loan Implementation Environmental Consultant (LIEC). Under the loan implementation consultancy services, a LIEC will support the project with (i) project preparation, including EMP update; (ii) EMP training, (iii) yearly EMP compliance verification; (iv) annual environment progress reporting; (v) identifying environment-related implementation issues and necessary corrective actions to be reflected in an action plan; and (v) undertaking site visits as required. The LIEC will:

(i) assess the project components’ environmental readiness prior to implementation based on the readiness indicators defined in Table A.3); (ii) support the JPMO in updating the EMP including monitoring plan as necessary to revise or incorporate additional environmental mitigation and monitoring measures, budget, institutional arrangements, etc, that may be required based on the detailed design; submit to ADB for approval and disclosure; ensure compliance with the PRC’s environmental laws and regulations, ADB’s Safeguard Policy Statement (2009) and Public Communications Policy (2011), and the World Bank Group’s Environmental, Health and Safety Guidelines; (iii) if required, update the IEE report for changes in the project during detailed design (for example if there is a major scope change) that would result in adverse environmental impacts not within the scope of the approved IEE; (iv) support the JMG, JPMO, JEDIC and tendering companies in preparing tender documents; ensure that the bidding documents and civil works contracts contain provisions requiring contractors to comply with the mitigation measures in the

1 The Jiuquan environmental monitoring station (under the Jiuquan environmental protection bureau) will be contracted by JEDIC to conduct environment impact monitoring.

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EMP and that relevant sections of the project EMP (or updated EMP, if prepared) are incorporated in the bidding and contract documents; (v) assist the JMG, JPMO and JEDIC to establish a Grievance Redress Mechanism (GRM), and provide training for the JPMO and GRM access points; (vi) Conduct regular EMP compliance assessments, undertake site visits as required, identify any environment-related implementation issues, propose necessary corrective actions, reflect these in a corrective action plan; (vii) assist the JPMO to prepare annual environmental monitoring and progress reports to ADB; (viii) provide training to JPMO, JEDIC and contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, and GRM in accordance with the training plan defined in the EMP; and (ix) assist the JPMO and JEDIC in conducting consultation meetings with relevant stakeholders as required, informing them of imminent construction works, updating them on the latest project development activities, GRM.

10. Overall environmental responsibilities are outlined in Table A.1.

Table A.1: Environmental responsibility

Phase Responsible Agency Environmental Responsibility Project Design Institutes on behalf of Prepare project FSRs, EIR and EMP, RPs, conduct public preparation JPMO consultation JEPB Review and approve the project EIR and EMP PPTA consultant Provide technical assistance, review EIR, prepare IEE report ADB Review and approve the IEE and EMP, including disclosure Engineering Design Institutes on behalf of Incorporate mitigation measures defined in the EMP into detail design JPMO engineering detail designs; Update the EMP in cooperation with the LIEC JPMO, LIEC Review updated EMP, confirm that mitigation measures have been included in engineering detail design ADB Approve updated EMP, including disclosure Tender & JPMO, JEDIC and contractors Incorporate EMP clauses in tender documents and contracts contracting ADB, LIEC Review bidding documents; confirm project’s readiness Construction JEDIC Nominate dedicated, trained, and qualified environment specialist; supervise contractors and ensure compliance with the EMP; coordinate construction supervision and quality control; act as local entry point for the project grievance redress mechanism (GRM). JPMO Appoint one environment specialist; supervise the effective implementation of the EMP; coordinate periodic environmental impact monitoring in compliance with the approved monitoring plan; coordinate the Project level GRM; prepare annual environment progress reports and submit them to ADB; conduct public consultation and inspect implementation of mitigation measures. Contractors Assign EMP implementation responsibilities; ensure health and safety; implement mitigation measures; conduct frequent noise and dust monitoring around construction sites. EMS (contracted by JPMO) Undertake environmental impact monitoring; submit quarterly monitoring results to JPMO, JEDIC, JEPB.

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Phase Responsible Agency Environmental Responsibility LIEC Advise on the mitigation measures; provide comprehensive technical support to JPMO and JEDIC for environmental management; conduct training; conduct annual EMP compliance review; support JPMO in preparing annual environmental progress reports. JEPB Conduct periodic inspections of all construction projects relative to compliance with PRC regulations and standards. Operation JMWSWC, JMUPUMD, SDFB Ensure proper operation of component facilities according to design standards, and implement mitigation measures and public consultations JPMO, LIEC Conduct EMP compliance review, instruct JEDIC and O&M units on environmental management requirements; coordinate environmental impact monitoring (during first year of operation); prepare annual environmental progress report for first year of operation JEPB Undertake periodic and random environmental monitoring and inspect environmental compliance ADB Review and approve environmental progress report, disclose on ADB project website Notes: ADB = Asian Development Bank; EMS = Environment Monitoring Station; JPMO = Jiuquan Project Management Office; JEDIC = Jiuquan Economic Development and Investment Company; JEPB = Jiuquan Environmental Protection Bureau; JMWSWC = Jiuquan Municipal Water Supply and Wastewater Company; JMUPUMD = Jiuquan Municipal Urban Public Utilities Management Department; LIEC = Loan Implementation Environment Consultant; SDFB = Suzhou District Forestry Bureau

C. Summary of Potential Impacts and Mitigation Measures

11. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified in the IEE as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table A.2. Mitigation or safeguard includes two types of environmental measures:

12. Those that will permanently become part of the infrastructure such as noise reduction materials for pump houses and flue gas desulfurization and electrostatic precipitator for boilers in the WWTP. These will need to be included in the design of the facility by the design institutes, otherwise they won’t be built. The costs of building and maintaining these systems have already been included in the infrastructure construction and operating costs and therefore are not be double-counted as part of the EMP costs.

13. Those that are temporary measures particularly during the construction stage, such as dust suppression by watering and wheel washing, the use of quiet / low noise powered mechanical equipment, flocculants used to facilitate sedimentation of suspended solids in construction site runoff, etc. These will need to be included in the tender documents, otherwise they are not budgeted by the contractor and they won’t be done. The costs for implementing these measures are included in the EMP. The budgets for implementing these measures in this project add up to the amount of $100,000.

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14. The mitigation measures defined in the EMP will be (i) checked and where necessary re- designed by the design institutes; (ii) incorporated into tender documents (where appropriate), construction contracts, and operational management plans; and (iii) implemented by contractors and JEDIC under supervision of the JPMO. The effectiveness of these measures will be evaluated based on the results of the environmental impact monitoring conducted by the EMS, and through EMP compliance verification conducted by the JPMO and LIEC.

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Table A.2: Summary of potential impacts and mitigation measures Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds Detailed Design Stage Design of road Extreme Road surface Consider potential impacts from extreme weather events due to Design JPMO; Included in surface and weather event cracking due to climate change in designing road surface and drainage system Institute JEDIC design contract drainage due to climate extreme cold change weather and flooding due to torrential rainfall Health and Promotion of non- Design must ensure public health and safety, promote non- Design JPMO; Included in safety motorized transport, motorized traffic, and ensure barrier-free design for disabled Institute JEDIC design contract protection of people. vulnerable road users Design of Air quality Odor from WWTP WWTP design to include odor removal equipment / facility Design JPMO; Included in wastewater Institute JEDIC design contract treatment plant WWTP boiler Boiler design to include flue gas desulfurization and electrostatic Design JPMO; Included in emission of SO2 and precipitator or similar air pollution control equipment to ensure Institute JEDIC design contract PM compliance with relevant emission standard Water quality Effluent discharge Technical design of the WWTP must achieve the desired Design JPMO; Included in treatment to meet Class 1B standard and safety of plant Institute JEDIC design contract operation, with dual power supply to avoid interruption to plant operation due to power failure Noise Noise from WWTP Technical design of the WWTP must be able to contain the Design JPMO; Included in operational noises from pumps, blowers and other noisy Institute JEDIC design contract equipment with proper acoustic design of these facilities Solid waste Sludge treatment Confirm the treatment and re-use of WW sludge Design JPMO; Included in and disposal Institute JEDIC design contract, PPTA

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds budget ($80,000) 2 If deemed necessary design sludge drying beds on site as Design JPMO; Included in contingency measure (until central sludge treatment facility Institute JEDIC design contract becomes operational) for spreading and air drying of sludge to further reduce moisture content to <60%, with leachate collection for returning the leachate to the WWTP for treatment Climate GHG emissions Take into account energy efficiency, energy conservation and low Design JPMO; Included in change GHG emissions in all building and systems designs and Institute JEDIC design contract equipment selection Design of Water source Irrigation water Design the irrigation system using the Taolai River water and Design JPMO; Included in windbreak tree demand on with water and energy saving features. Avoid use of municipal Institute JEDIC design contract plantation municipal water water supply for irrigation. supply Species Alien, invasive Design must ensure that only native, non-invasive species are Design JPMO; Included in species used. Institute JEDIC design contract Social Facilitate site Design barrier-free access and facilities as requested during Design JPMO; Included in access for the public consultation Institute JEDIC design contract handicaps Pre-construction Phase Institutional - Lack of environment Appoint qualified environment specialists within the JPMO; JPMO, LIEC, ADB JMG, Loan strengthening management JEPB implementation capacities within Contract loan implementation environment consultants (LIEC) TA JPMO within loan administration consultant services. Conduct environment management training Contracting of environmental monitoring station to conduct environment impact monitoring; - Lack of environment Appointment of environment specialist; JEDIC, LIEC, JPMO, ADB JEDIC, Loan management JEPB implementation capacities within Conduct environment management training TA

2 PPTA budget savings (80,000-100,000) will be used to support the JMG in developing a sludge management strategy for the city, and revising/refining the FSR for the central sludge treatment facility.

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds JEDIC EMP Update - - Review mitigation measures defined in this EMP, update as JPMO, JEDIC, EA, ADB JPMO, Loan required to reflect detailed design, disclose updated EMP on LIEC implementation project website TA Tender Air quality Dust (TSP) impact Put into tender documents dust suppression measures: Design JPMO; Included in documents to sensitive Institute JEDIC tendering receptors Water unpaved areas, backfill areas and haul roads 7-8 times agency each day contract Erect hoarding around dusty activities Strengthen the management of stockpile areas with frequent watering or covering with tarpaulin Minimize the storage time of construction and demolition wastes on site by regularly removing them off site Do not overload trucks for transporting earth materials to avoid spilling dusty materials onto public roads Equip trucks for transporting earth materials with covers or tarpaulin to cover up the earthy materials during transport Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads Immediately cleanup all muddy or dusty materials on public roads outside the exits of the works areas Sensibly plan the transport routes and time to avoid busy traffic and heavily populated areas when transporting earthy materials Immediately plan vegetation in all temporary land take areas upon completion of construction to prevent dust and soil erosion Fumes and PM from Put into tender documents that these plants must be enclosed Design JPMO; Included in the asphalt mixing and equipped with bag house filter or similar air pollution control Institute JEDIC tendering plant and the equipment agency concrete batching contract plant Noise PME noise impact to Put into tender documents the following noise mitigation Design JPMO; Included in tendering

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds sensitive receptors measures: Institute JEDIC agency contract Use quiet equipment Adopt good O&M of machinery Use temporary hoardings or noise barriers to shield off noise sources No construction of North Riverside Road and Panxuan Road extension between 2200 and 0600 hours Maintain continual communication with the Guanbeigou Primary School to avoid noisy activities near the school during examination periods Water quality Construction site Put into tender documents the following measures to treat Design JPMO; Included in wastewater impact wastewater and runoff from construction sites: Institute JEDIC tendering on water bodies agency Provide portable toilets and small package WWTPs for workers contract and canteens Install sedimentation tanks on-site to treat process water and muddy runoff Solid waste Disposal or storage Specify in tender documents the spoil disposal or storage sites Design JPMO; Included in of excavated spoil and that only these sites could be used. Institute JEDIC tendering agency contract Health & Occupational health Specify in tender documents the provision of personal safety and Design JPMO; Included in safety & safety of workers protective equipment such as safety hats and shoes, eye Institute JEDIC tendering goggles, respiratory masks, etc. to all construction workers. agency contract Construction Traffic Construction Plan transport routes for construction vehicles and specify in Design JPMO; Included in traffic vehicles causing tender documents to forbid vehicles from using other roads and Institute, Local JEDIC tendering traffic congestion during peak traffic hours. traffic police agency contract Estimated cost for Design and Pre-construction stage: costs are included in the detail design fee and tendering agency contracts

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds Construction Stage Construction Air quality Dust (TSP) during Frequent watering of unpaved areas, backfill areas and haul Contractor JEDIC; Included in site good construction roads; JPMO; construction practice JEPB; LIEC Erect hoarding around dusty activities; contract Strengthen the management of stockpile areas with frequent watering or covering with tarpaulin; Minimize the storage time of construction and demolition wastes on site by regularly removing them off site; Do not overload trucks for transporting earth materials to avoid spilling dusty materials onto public roads; Equip trucks for transporting earth materials with covers or tarpaulin to cover up the earthy materials during transport; Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads; Immediately cleanup all muddy or dusty materials on public roads outside the exits of the works areas; Sensibly plan the transport routes and time to avoid busy traffic and heavily populated areas when transporting earthy materials; Immediately plan vegetation in all temporary land take areas upon completion of construction to prevent dust and soil erosion. Fumes and PM from Place these plants at least 300 m upwind of any sensitive Contractor JEDIC; Included in asphalt mixing plant receptors; JPMO; construction and concrete JEPB; LIEC contract batching plant Enclose these plants and equip them with bag house filter or similar air pollution control equipment.

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds

Noise Noise from PME Sensibly schedule construction activities, avoid noisy equipment Contractor JEDIC; Included in and vehicles working concurrently; JPMO; construction JEPB; LIEC Select advanced quiet equipment and construction method, and contract tightly control the use of self-provided generators; Comply with local requirements in areas with sensitive receptors very close by, in particular forbid construction works from 2200 to 0600 hr when constructing the North Riverside Road and Panxuan Road extension. If necessary, set up temporary noise barrier; Control speed of bulldozer, excavator, crusher and other transport vehicles travelling on site, adopt noise reduction measures on equipment, strengthen equipment repair and maintenance to keep them in good working condition; Limit the speed of vehicles travelling on site (less than 8 km/hr), forbid the use of horns unless absolutely necessary, minimize the use of whistles; Maintain continual communication with the Guanbeigou Primary School to avoid noisy activities near the school during examination periods. Water quality Construction site Domestic WW and cafeteria WW will go through biochemical Contractor JEDIC; Included in wastewater treatment and grease trap prior to discharge; JPMO; construction discharge JEPB; LIEC Timely cleanup scattered materials on site, stockpiles must adopt contract measures to prevent being washed into water bodies by rain water; Reuse equipment and wheel wash WW for dust suppression; Erect berms or sandbags during bridge foundation works if necessary to contain runoff polluting the Beida River bed.

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds

Solid waste Construction site Transport construction waste in enclosed containers; Contractor JEDIC; Included in refuse and spoil JPMO; construction disposal Establish enclosed waste collection points on site, with JEPB; LIEC separation of domestic waste and construction waste; contract Set up centralized domestic waste collection point and transport offsite for disposal regularly by sanitation department; Dispose spoil at designated disposal site. Backfilled area if not being used must be planted with vegetation to prevent soil erosion. Ecology and Destruction of Avoid rainy season. If necessary, construct berms to direct Contractor JEDIC; Included in Soil vegetation, Soil rainwater runoff away; JPMO; construction Erosion JEPB; LIEC Install drainage ditches and sedimentation tanks in temporary contract construction areas to prevent soil erosion; Pay close attention to the growth of vegetation cover on backfilled area to prevent soil erosion; Immediately restore, level and plant landscape on temporary occupied land upon completion of construction works.

Physical Destruction of Contractor must comply with PRC's Cultural Relics Protection Contractor JEDIC; Included in cultural cultural relics in river Law and Cultural Relics Protection Law Implementation JPMO; construction resources bed and soil Regulations if such relics are discovered, stop work immediately cultural contract and notify the relevant authorities, adopt protection measures relics and notify the Security Bureau to protect the site. bureau; LIEC Health and Occupational Construction site Effectively clean and disinfect the site. During site formation, Contractor JEDIC; Included in Safety health and sanitation spray with phenolated water for disinfection. Disinfect toilets and JPMO; construction safety refuse piles and timely remove solid waste; JEPB; LIEC contract Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year; Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection.

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds

Occupational safety Provide safety hats and shoes to all construction workers and Contractor JEDIC; Included in enforce their use by the workers; JPMO; construction JEPB; LIEC Provide goggles and respiratory masks to workers doing asphalt contract road paving; Provide ear plugs to workers working near noisy PME, especially during piling of bridge foundations. Food safety Inspect and supervise food hygiene in cafeteria on site regularly. Contractor JEDIC; Included in Cafeteria workers must have valid health permits. Once food JPMO; construction poisoning is discovered, implement effective control measures JEPB; LIEC contract immediately to prevent it from spreading Disease prevention Construction workers must have physical examination before Contractor JEDIC; Included in and safety start working on site. If infectious disease is found, the patient JPMO; construction awareness must be isolated for treatment to prevent the disease from JEPB; LIEC contract spreading. From the 2nd year onwards, conduct physical examination on 20% of the workers every year; Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents; Specify the person responsible for health and epidemic prevention responsible for the education and propaganda on food hygiene and disease prevention to raise the awareness of workers. Community Temporary traffic A traffic control and operation plan will be prepared together with Contractor, JPMO, LIEC JMG (traffic health and management the local traffic management authority prior to any construction. local traffic police safety The plan shall include provisions for diverting or scheduling police, JEDIC department) construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance. Information Residents and businesses will be informed in advance through JEDIC JPMO, LIEC JEDIC disclosure media of the construction activities, given the dates and duration of expected disruption.

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds Access to Clear signs will be placed at construction sites in view of the Contractor JPMO, LIEC Included in construction sites public, warning people of potential dangers such as moving construction vehicles, hazardous materials, excavations etc and raising contract awareness on safety issues. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate. Utility services Assess construction locations in advance for potential disruption Contractor, JEDIC; Included in interruptions to services and identify risks before starting construction; local service JPMO; construction providers JEPB; LIEC contract If temporary disruption is unavoidable, develop a plan to minimize the disruption in collaboration with relevant local authorities such as power company, water supply company and communication company, and communicate the dates and duration in advance to all affected people. Grievance Social & Handling and Establish a GRM, appoint a GRM coordinator within JPMO; JPMO, JEDIC, ADB JPMO budget, redress environmental resolving complaints Contractor Loan mechanism by contractors Brief and provide training to GRM access points (JEDIC, implementation contractors); TA Disclose GRM to affected people before construction begins at the main entrance to each construction site; Maintain and update a Complaint Register to document all complaints. Estimated cost for the Construction Stage: $100,000 Operational Stage Wastewater Air quality Odor from WWTP Regularly inspect and maintain odor removal equipment/facility JMWSWC JPMO; JMWSWC’s treatment plant and remove sludge to ensure compliance with PRC’s Discharge JEPB operation (WWTP) Standard of Pollutants from Municipal Wastewater Treatment budget Plant (GB 18918-2002) Emissions from Regularly inspect and maintain the boilers and their air pollution JMWSWC JPMO; JMWSWC’s boilers control systems to ensure compliance with PRC’s Air Pollutant JEPB operation Integrated Emission Standard (GB 16297-1996). budget Noise Noise from WWTP Keep the equipment in good working condition and with regular JMWSWC JPMO; JMWSWC’s maintenance to ensure compliance with PRC’s Noise Standards JEPB operation at the Boundary of Industries and Enterprises (GB 12348-2008). budget

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds Water quality Discharge of treated Keep the treatment process in nor mal operating condition with JMWSWC JPMO; JMWSWC’s effluent from WWTP regular maintenance of equipment; JEPB operation budget Regularly monitor treatment efficiency to confirm compliance with GB 18918-2002 Class 1B Effluent Standard; Re-use treated effluent for irrigation of landscape or street cleaning within the WWTP. Solid waste Disposal of sludge Operate and maintain sludge dewatering/thickening facility and JMWSWC JPMO; JMWSWC’s sludge drying beds; JEPB operation budget Conduct regular chemical testing of the sludge to determine whether the sludge is suitable for re-use, especially as a soil conditioner for the windbreak tree plantations; If reuse is not possible, ensure moisture content of the sludge complies with PRC’s Disposal of Sludge from Municipal Wastewater Treatment Plant – Quality of Sludge for Co-landfilling (GB/T 23485-2009), and regularly transport the sludge to designated landfill. Disposal of spent Regularly transport spent UV lamps to the medical waste JMWSWC JPMO; JMWSWC’s UV lamps treatment facility or arrange for the supplier to take back spent JEPB operation UV lamps for recycling. budget Emergency Risks of Accidental Develop and implement an emergency preparedness and JMWSWC JPMO; JMWSWC’s preparedness Discharge, Overload response plan for the WWTP; JEPB operation budget Provide dual power supply and spare parts for key components; Regular inspection and proper maintenance of the WWTP; Install and operate an in-house analytical lab prior to operation of the WWTP. The major analytical equipment will include the following: wastewater sampler, pH meter, flow meter, conductivity meter, UV/VIS spectrophotometer, DO meter, COD speedy tester, thermostat incubator, electric balance, and centrifuge. Monitoring by JEPB Install and operate automated on-line, real-time monitoring of JEPB JMG JEPB influent and effluent quality; monitoring budget Regularly inspect and monitor industries in the catchment area to confirm compliance with relevant discharge standard.

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds Occupational Health and safety of Provide safety shoes or boots and other personal protective JMWSWC JPMO; JMWSWC’s health and workers equipment and chemical resistant clothing to workers to avoid JEPB operation safety exposure to corrosive and/or polluted solids, liquids, gases or budget vapors; Post safety instructions in each workshop regarding the storage, transport, handling or pouring of chemicals; Check electrical equipment for safety before use; verify that all electric cables are properly insulated; take faulty or suspect electrical equipment to a qualified electricity technician for testing and repair; Provide respiratory mask to workers working in the sludge dewatering and de-odor workshops and when moving and transporting sludge; Ensure compliance to all safety instructions concerning entry into confined spaces, e.g., check atmosphere for oxygen or for poisonous gases, use respiratory protection equipment if needed, have a co-worker stand guard in case of need for help, etc; All workers will undergo periodic examinations by occupational physician to reveal early symptoms of possible chronic effects or allergies; and Health and safety will be incorporated into the regular staff training programs. Roads and Traffic Road condition Regularly inspect and maintain the road surface and clean up the JMUPUMD JMTB; JMUPUMD’s bridges drains. JEDIC; operation JPMO budget Dangerous goods Strictly enforce traffic law to prohibit large vehicles carrying Jiuquan JMG JTP’s vehicles dangerous goods travelling on the urban roads and bridges. Traffic Police operation budget Road safety and Strictly enforce traffic law to improve road safety and reduce Jiuquan JMG JTP’s traffic accidents traffic accidents. Traffic Police operation budget Social, Air quality and noise Strictly enforce a “no build zone” within 15 m from the road red JEPB, JDRC JMG JDRC environmental impact to future line. health roadside

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Impact Potential Impact Implementing Supervising Source of Item Mitigation Measures Factor and/or Issues Entity Entity funds developments Windbreak tree Water source Water and energy Regularly inspect and maintain the irrigation system to prevent SDFB JEDIC; SDFB’s plantation use in irrigation water and energy wastage. JPMO operation budget Regularly monitor actual water use of the windbreak plantation, near-surface wind speed, wind erosion intensity, relative humidity, biomass growth, pesticide use etc. in the project area. Estimated cost for the Operational Stage: the cost will be included in the O&M budget Notes: JDRC = Jiuquan Development Reform Committee; JMG = Jiuquan Municipal Government; JPMO = Jiuquan Project Management Office; JPMO = Jiuquan Project Management Office Environmental and Social Management Unit; JEDIC = Jiuquan Economic Development and Investment Company; JEPB = Jiuquan Environmental Protection Bureau; JMWSWC = Jiuquan Municipal Water Supply and Wastewater Company; JMUPUMD = Jiuquan Municipal Urban Public Utilities Management Department; JMTB =Jiuquan Municipal Traffic Bureau; SDFB = Suzhou District Forestry Bureau; PME = power mechanical equipment; O&M = operation & maintenance; UV = ultra-violet; JTP = Juquian Traffic Police.

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C. Monitoring and Reporting

15. Monitoring will include project readiness monitoring (to be conducted by the LIEC), environmental impact monitoring (to be conducted by a licensed entity), as well as EMP compliance verification during project implementation and the first year of project operation (to be conducted by JPMO and LIEC). Monitoring and reporting arrangements defined for this project are described below.

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

Table A.3: Project Readiness Assessment Indicators Indicator Criteria Assessment The EMP was updated after technical detail EMP update Yes No design, and approved by ADB The borrower complies with loan covenants related Compliance with to project design and environmental management Yes No loan covenants planning Public involvement Meaningful consultation completed Yes No effectiveness GRM established with entry points Yes No LIEC is in place Yes No Environment specialist appointed by JEDIC Yes No Environmental Environment specialists appointed by JPMO Yes No Supervision in place Environment monitoring station contracted by Yes No JPMO Bidding documents and contracts incorporating the environmental activities and safeguards listed as Yes No Bidding documents loan assurances and contracts with Bidding documents and contracts incorporating the environmental impact mitigation and environmental management Yes No safeguards provisions of the EMP Environmental requirements of EMP included in Yes No contract documents for construction contracts EMP financial The required funds have been set aside to support Yes No support the EMP implementation

17. Environmental impact monitoring. Table A.4 shows the environmental impact monitoring program specifically designed for this project, defining the requirements on the scope, location, parameter, duration and frequency of monitoring during the construction and operational stages. Environment impact monitoring will include monitoring of air quality, noise, water quality and other parameters described in Table A.4. During construction, regular environmental impact monitoring will be conducted by the environment monitoring station of Jiuquan (EMS), contracted by JPMO. In addition, contractors will be required to conduct frequent noise and air quality monitoring around construction sites and to report monitoring results in the framework of their weekly progress reports to JPMO and JEDIC. During operation, the O&M units of the project facilities will contract the EMS to conduct environmental impact monitoring. The budget for environmental impact monitoring by the EMS has been estimated at $21,200. Monitoring by contractors will cost approximately $4,000. The JPMO, JEDIC, the

A-19 contractors, the O&M units (which are the Jiuquan Municipal Urban Public Utilities Management Department for roads and bridges, Jiuquan Municipal Water Supply and Wastewater Company for the WWTP, and Suzhou District Forestry Bureau for the windbreak tree plantations), and the LIEC will, at the outset of project implementation, prepare more detailed environmental monitoring programs with detailed cost breakdowns to be implemented during the construction and operational phases. The monitoring program and budgets will be included in the project tendering documents and budgets, as well as the construction and operation contracts.

18. The environmental impact monitoring results will be compared with relevant PRC performance standards (Table A.5), and non-compliance with these standards will be highlighted in the monitoring reports. Monitoring results will be submitted by the EMS to the JPMO and the JEDIC on a quarterly basis, and will be reported in the annual environmental monitoring reports by the JPMO (with the support of the LIEC, see reporting plan in Table A.6).

19. Monitoring will also be periodically conducted by the local environmental authorities in the framework of their legal mandate to check compliance with applicable environmental regulations. They will be responsible for undertaking regular and random environmental monitoring and inspection activities before, during, and after construction as well as in the event of emergencies.

Table A.4: Environmental Impact Monitoring Program Monitoring Monitoring Implementing Supervising Estimated Item Monitoring Location Frequency & Parameter Entity Entity Cost Duration

Construction Stage

Dust and TSP, LAeq At boundaries of all construction 2 times per Contractor JPMO, $4,000 noise sites and nearby sensitive day, once per JEDIC receptors (as defined below under week during “Air quality”) construction period Air quality TSP, SO2, 5 locations along North Riverside 1 day (24-hr EMS (through JEDIC; $2,500 NOx Road: continuous JPMO) JPMO;JEPB sampling) per (i) Chri month during stian Church construction (ii) Fa’ period Chuang Temple (iii) Zha ojia Watermill (iv) Hen gyun Agricultural Materials Production Co. (v) Jiuq uan Dizhu Chinese Pharmaceutical Co.

4 locations along :Panxuan Road extension: (i) Xife ngsi Village (ii) Gua nbeigou Primary School (iii) Gua nbeigou Village north of Panxuan Road (iv) Gua nbeigou Village south of Panxuan Road)

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Monitoring Monitoring Implementing Supervising Estimated Item Monitoring Location Frequency & Parameter Entity Entity Cost Duration

1 location during Jiuyin Bridge construction at the Northern Suburban Park 1 location at the downwind boundary of the WWTP construction site 3 locations at the construction site boundaries along the wastewater pipeline route near the existing railway station (exact locations will depend on the locations of nearby sensitive receptor when there is construction activity)

Noise LAeq 14 locations (same as for air 2 times per EMS (through JEDIC; $5,000 quality) day (day time JPMO) JPMO;JEPB and night time); 1 day per month during construction period Water pH, COD, 2 locations in Beida River at 100 m 1 time per day; EMS (through JEDIC; $5,000 quality BOD5, SS, upstream of the proposed Xiyi 1 day per JPMO) JPMO;JEPB NH3-N, TPH Bridge and 500 m downstream of month during the Jiuhang Road Bridge (when construction there is flow in Beida River) period

Operational Stage (the first year)

Air quality TSP, NO2 5 locations along North Riverside 1 time per day; EMS (through JEDIC; $3,000 Road: 1 day every 3 JMUPUMD) JPMO;JEPB months (i) Chri stian Church (ii) Fa’ Chuang Temple (iii) Zha ojia Watermill (iv) Hen gyun Agricultural Materials Production Co. (v) Jiuq uan Dizhu Chinese Pharmaceutical Co.

4 locations along Panxuan Road extension: (i) Xife ngsi Village (ii) Gua nbeigou Primary School (iii) Gua nbeigou Village north of Panxuan Road (iv) Gua nbeigou Village south of Panxuan Road)

1 location at the Northern Suburban Park

PM, SO2, 5 locations at the WWTP: 1 time per day, EMS (through JEDIC; NH3, H2S 1 day every 3 JMWSWC) JPMO;JEPB (i) 1 at

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Monitoring Monitoring Implementing Supervising Estimated Item Monitoring Location Frequency & Parameter Entity Entity Cost Duration

each of the 4 boundaries of months the WWTP (ii) 1 at the boiler room chimney exit point Noise LAeq 5 locations along North Riverside 2 times per EMS JEDIC; $1,000 Road: day (day time JPMO;JEPB and night through (i) Chri time); 1 day JMUPUMD stian Church every 6 (for roads) and (ii) Fa’ months JMWSWC (for Chuang Temple WWTP) (iii) Zha ojia Watermill (iv) Hen gyun Agricultural Materials Production Co. (v) Jiuq uan Dizhu Chinese Pharmaceutical Co.

4 locations along Panxuan Road extension: (i) Xife ngsi Village (ii) Gua nbeigou Primary School (iii) Gua nbeigou Village north of Panxuan Road (iv) Gua nbeigou Village south of Panxuan Road) 1 location at the Northern Suburban Park 1 location at each of the 4 boundaries of the WWTP Surface pH, COD, 3 locations in Beida River at 500 m 1 time per day; EMS (through JEDIC; $2,500 water BOD5, SS, upstream of the WWTP discharge 1 day every 3 JMWSWC) JPMO;JEPB quality NH3-N, TPH point and 1 km and 4 km months downstream of the WWTP discharge point (when there is flow in Beida River)

Ground pH, NH3-N, 1location within the WWTP 1 time per day; EMS (through JEDIC; $2,200 water nitrate, (groundwater well) 1 day every 3 JMWSWC) JPMO;JEPB quality nitrite months Windbrea Water Water and electricity used for Monthly SDFB JEDIC; 2,000 k tree resource irrigation; JPMO;JEPB plantation Biomass growth, wind-speed, pesticide use, humidity, Based on 6,000 temperature, others3 detailed monitoring plan Total estimated cost: $29,200

Notes: JPMO = Jiuquan Project Management Office Environmental and Social Management Unit; JEDIC = Jiuquan Economic Development and Investment Company; JEPB = Jiuquan Environmental Protection Bureau; JMWSWC = Jiuquan Municipal Water Supply and Wastewater Company; JMUPUMD = Jiuquan Municipal Urban Public Utilities Management Department; SDFB =

3 The monitoring system for the windbreak plantation, including monitoring parameters, monitoring frequency will be developed during project implementation under the capacity building component.

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Monitoring Monitoring Implementing Supervising Estimated Item Monitoring Location Frequency & Parameter Entity Entity Cost Duration

Suzhou District Forestry Bureau; EMS = Environmental Monitoring Station

Table A.5: Monitoring indicators and applicable PRC standards4 Period Indicator Standard Construction TSP Class II Ambient Air Quality Standard (GB 3095-1996) Fume from asphalt mixing plant Air Pollutant Integrated Emission Standard (GB 16297-1996) (SO2, NOx) Noise limits of PME at boundary Emission Standard of Environmental Noise for Boundary of of construction site Construction Site (GB 12523-2011) Discharge of wastewater from Class I standard of Integrated Wastewater Discharge Standard (GB construction sites 8978-1996) Operation Traffic noise at sensitive Noise standard for Category 4a Functional Area in Environmental receptor within 35 m of road red Quality Standard for Noise (GB 3096-2008) line Groundwater Category III standard of Quality Standard for Groundwater (GB/T 14848-9) Traffic noise at sensitive Noise standard for Category 2 Functional Area in Environmental receptor beyond 35 m of road Quality Standard for Noise (GB 3096-2008) red line

Odor (NH3 and H2S) at WWTP Class II standard of Discharge Standard of Pollutants for Municipal site boundary Wastewater Treatment Plant (GB 18918-2002)

Boiler emissions (SO2 and PM) Class II standard of Air Pollutant Integrated Emission Standard (GB in WWTP 16297-1996) Noise at WWTP site boundary Noise standard for Class II Functional Area in Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008) Water quality of treated Class 1B standard of Discharge Standard of Pollutants for Municipal wastewater from WWTP Wastewater Treatment Plant (GB 18918-2002) Surface water quality Category III standard of Environmental Quality Standards for Surface Water (GB 3838-2002) Moisture content and quality of Disposal of Sludge from Municipal Wastewater Treatment Plant – WWTP sludge Quality of Sludge for Co-landfilling (GB/T 23485-2009) WWTP sludge for agricultural re- Disposal of Sludge from Municipal Wastewater Treatment Plant – use Control Standards for Agricultural Use (CJ/T 309-2009)

20. EMP compliance verification and reporting. EMP compliance monitoring will be undertaken by the JPMO, with support of the loan implementation environment consultant (LIEC). The JPMO will report to ADB the project’s adherence to the EMP, information on project implementation, environmental performance of the contactors, and environmental compliance through quarterly project progress reports and annual EMP progress and monitoring reports (Table A.6). Quarterly progress reports by the JPMO to ADB will include a summary of EMP implementation progress and compliance. The LIEC will support the JPMO in developing the annual EMP progress and monitoring reports. The reports should confirm the project’s compliance with the EMP, local legislation such as PRC EIA requirements, and identify any

4 The project applies PRC standards. A comparison of PRC standards with internationally accepted standards (as defined in the World Bank’s Environment Health and Safety Guidelines) was conducted and is described in Chapter 2. The comparison confirmed that PRC standards are either internationally accepted, or have comparable standard limits with internationally accepted standards. A deviation from PRC practices and standards would make the task of compliance monitoring authorities unnecessary complicated, and is deemed not justified.

A-23 environment related implementation issues and necessary corrective actions, and reflect these in a corrective action plan. The performance of the contractors will also be reported on with respect to environmental protection and impact mitigation. The operation and performance of the project GRM, environmental institutional strengthening and training, and compliance with all covenants under the project will also be included in the report.

21. Environmental acceptance monitoring and reporting. Within three months after each component completion, or no later than 1 year with permission of the JEPB, environmental acceptance monitoring and audit reports of each component completion shall be: (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Regulation on Project Completion Environmental Audit (MEP, 2001), (ii) reviewed for approval of the official commence of individual component operation by environmental authorities, and (iii) finally reported to ADB (Table A.6). The environmental acceptance reports of the component completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations.

22. Project Design and Monitoring Framework. At the outset of project implementation, the JPMO and JEDIC will develop (i) comprehensive project design and monitoring framework (DMF) procedures to systematically generate data on inputs and outputs of the project components, and (ii) detailed environmental and related social economic indicators to measure project impacts. The DMF indicators for the project may include (i) public satisfaction with the living environment; (ii) increased employment; (iii) wastewater collection and treatment rate; (iv) increased traffic flow on project roads; (v) increased or decreased traffic accidents; (vi) decreased in wind speed and sand deposition by windbreak tree plantations; (vii) increased local GDP; and (viii) increased tourism numbers. Under the DMF, baseline and progress data will be reported at the requisite time intervals by JEDIC. JEDIC will be responsible for analyzing and consolidating the data through its management information system. The DMF will be designed to permit adequate flexibility to adopt remedial action regarding project design, schedules, activities, and development impacts. The JPMO and JEDIC will refine the DMF, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 6 months after loan effectiveness.

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Table A.6: Reporting plan Reporting Reports From To Frequency Construction Phase Internal progress Internal project progress report by construction Contractors JEDIC Monthly reports by contractors contractors, including monitoring results Environmental impact Environmental impact monitoring report EMS JEPB, JPMO, Quarterly monitoring JEDIC Reports to ADB Project progress report (including section on JPMO ADB Quarterly EMP implementation and monitoring) Environment progress and monitoring reports JPMO ADB Annually Acceptance report Environmental acceptance monitoring and Licensed JEPB Once, not later audit report institute than one year after completion of physical works Operational Phase Environmental impact Environmental impact monitoring report EMS JEPB, JPMO, Quarterly monitoring (during first year of operation) JEDIC, JMWSWC, JMUPUMD, SDFB Reports to ADB Project progress report (including section on JPMO ADB Quarterly EMP implementation and monitoring) Environment progress and monitoring report JPMO ADB, Once (after JMWSWC, first year of JMUPUMD, operation) SDFB Notes: EMS = Environment Monitoring Station; JPMO = Jiuquan Project Management Office; JEDIC = Jiuquan Economic Development and Investment Company; JEPB = Jiuquan Environmental Protection Bureau; JMWSWC = Jiuquan Municipal Water Supply and Wastewater Company; JMUPUMD = Jiuquan Municipal Urban Public Utilities Management Department; SDFB = Suzhou District Forestry Bureau

D. Institutional capacity building and training

23. The capacity of the JPMO, JEDIC and contractors’ staff responsible for EMP implementation and supervision will be strengthened. All parties involved in implementing and supervising the EMP must have an understanding of the goals, methods, and practices of project environmental management. The project will address the lack of capacities and expertise in environmental management through (i) institutional capacity building, and (ii) training.

24. Institutional strengthening. The capacities of the JPMO and JEDIC to coordinate environmental management will be strengthened through a set of measures:

(i) The appointment of qualified environment specialists within the JPMO in charge of EMP coordination, including GRM;

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(ii) The appointment of international and national environmental specialists under the loan implementation consultancy to guide JPMO and JEDIC in implementing the EMP and ensure compliance with ADB’s Safeguard Policy Statement (SPS 2009); and (iii) The appointment of an environment specialist by the JEDIC to conduct regular site inspections and coordinate environmental impact monitoring.

25. Training. The JPMO, JEDIC, contractors and O&M units will receive training in EMP implementation, supervision, and reporting, and on the Grievance Redress Mechanism (Table A.7). Training will be facilitated by the LIEC with support of other experts under the loan implementation consultant services.

Table A.7: Training Program

Cost Period No. of Total Training Attendees Contents Times ($/person (days) persons Cost /day) EMP adjustment JPMO, Development and Twice - 2 15 80 $4,800 and JEDIC, adjustment of the EMP, Once prior to, implementation contractors roles and responsibilities, and once after monitoring, supervision and one year of reporting procedures, project review of experience (after implementation 12 months) Grievance JPMO, Roles and responsibilities, Twice - 1 10 80 $1,600 Redress JEDIC, Procedures, review of Once prior to, Mechanism contractors, experience (after 12 and once after JEPB months) one year of project implementation Environmental JPMO, Engineering and control Once (during 2 10 80 $1,600 technologies and JEDIC, technologies, equipment project processes contractors, selection and implementation) JMWSWC, procurements, wastewater JMUPUMD, treatment processes, SDFB sludge treatment/disposal processes Environmental JPMO, Monitoring methods, data Once (at 1 10 80 $800 monitoring JEDIC, collection and processing, beginning of contractors, reporting systems project JMWSWC, construction) JMUPUMD, SDFB Total estimated cost: $8,800 Notes: JPMO = Jiuquan Project Management Office; JEDIC = Jiuquan Economic Development and Investment Company; JEPB = Jiuquan Environmental Protection Bureau; JMWSWC = Jiuquan Municipal Water Supply and Wastewater Company; JMUPUMD = Jiuquan Municipal Urban Public Utilities Management Department; SDFB = Suzhou District Forestry Bureau

26. Capacity building. In addition to training pertaining to EMP implementation, the project will provide a substantial capacity building package with a strong focus on environment, health and safety. Major capacity building components include: (i) Support in developing and implementing a windbreak plantation monitoring and management system and an educational trail within the windbreak plantation; (ii) Support in developing a comprehensive sewage sludge management strategy including reviewing and improving the FSR currently being prepared by JMG for a central sludge treatment facility; (iii) Support to improve urban transport management, promote public transport, and increase traffic safety; and (iv) Support in reviewing and enhancing the city’s water conservation strategy and plans.

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27. The institutional components of the project will also involve training by loan consultants in operation and maintenance of completed facilities. Part of this training will focus on teaching staff how to use a set of indicators to monitor performance of the completed facilities. These indicators will be designed by loan implementation consultants prior to operation start-up.

E. Consultation, Participation and Information Disclosure

28. Consultation during Project Preparation. Section VII of the report has described the meaningful public participation and consultation implemented during project preparation.

29. Future Public Consultation Plan. Plans for public involvement during construction and operation stages have been developed during project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages; (ii) evaluating environmental and economic benefits and social impacts; and (iii) interviewing the public after the project is completed. These plans will include several types of public involvement, including site visits, workshops, investigation of specific issues, interviews, and public hearings, as indicated in Table A.8. The budget for public consultation is estimated at approximately $7,100.

Table A.8: Public consultation plan Organizer Format No. of Times Subject Attendees Budget Construction Stage JPMO Public 4 times: 1 time Adjusting of mitigation Residents adjacent to $3,200 consultation & site before construction measures, if necessary; components, visit commences and 1 construction impact; representatives of time each year comments and social sectors during construction suggestions JPMO, Expert workshop As needed based on Comments and Experts of various $1,300 JEDIC or press public consultation suggestions on sectors, media conference mitigation measures, public opinions JEDIC Resettlement As required by Comments on Persons affected by Included in survey relevant resettlement, resettlement and the resettlement plan improvement of living relocation resettlement conditions, livelihood, plan update and poverty reduction; survey comments and budget suggestions Operational Stage JEDIC, Public Once in the first year Effectiveness of Residents adjacent to $1,300 JMWSWC, consultation and mitigation measures, component sites, JMUPUMD, site visits impacts of operation, representatives of SDFB comments and residents and suggestions representatives of social sectors JEDIC, Expert workshop As needed based on Comments and Experts of various $1,300 JMWSWC, or press public consultation suggestions on sectors, media JMUPUMD, conference operational impacts, SDFB public opinions Total budget: $7,100 Notes: JPMO = Jiuquan Project Management Office; JEDIC = Jiuquan Economic Development and Investment Company; JEPB = Jiuquan Environmental Protection Bureau; JMWSWC = Jiuquan Municipal Water Supply and Wastewater Company; JMUPUMD = Jiuquan Municipal Urban Public Utilities Management Department; SDFB = Suzhou District Forestry Bureau

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F. Grievance Redress Mechanism

30. Public participation, consultation and information disclosure undertaken as part of the local EIA process have discussed and addressed major community environmental concerns. Continued public participation and consultation has been emphasized as a key component of successful project implementation. As a result of this public participation and safeguard assessment during the initial stages of the project, major issues of grievance are not expected. However, unforeseen issues may occur. To settle such issues effectively, a Grievance Redress Mechanism (GRM) providing effective and transparent channels for lodging and addressing complaints and grievances has been defined. The GRM will be established prior to construction of the project components. The GRM is responsive to ADB’s Safeguard Policy Statement (2009) and PRC legislation.

31. The Proposed Project GRM. In consultation with the JPMO, JEDIC, JEPB and potentially affected people, it was agreed that the JPMO will establish a complaints center for the project. Other GRM entry points will include: (i) the contractors; (ii) JEDIC; and (iii) JEPB. Contact details for the complaints center and the entry points will be publicly disseminated on information boards at construction sites and nearby communities/villages. The mechanism will be accessible to diverse members of the community, including more vulnerable groups such as women and youth. Multiple means of using this mechanism, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. Confidentiality and privacy for complainants should be honored where this is seen as necessary or important. In the construction period and the initial operational period covered by loan covenants, the JPMO will report progress to the ADB, and this will include reporting complaints and their resolution.

32. Basic steps for resolving complains are as follows:

(i) Step 1: For environmental problems during the construction stage, the affected persons (AP) can register their complaints directly with the contractors. Contractors are required to set up a complaint hotline and designate a person in charge of handling complaints, and advertise the hotline number at the main entrance to each construction site. The contractors are required to maintain and update a Complaint Register to document all complaints. The contractors are also required to respond to the complainant in writing within 7 calendar days on their proposed solution and how it will be implemented. If the problem is resolved and the complainant is satisfied with the solution, the grievance handling ends here. The contractors are required to report complaints received, handled, resolved and unresolved to JEDIC and JPMO monthly.

(ii) Step 2: For environmental problems that could not be resolved at the contractor level, the affected person (AP) can take the grievance to JEDIC and/or JEPB. On receiving complaints by JEDIC or JEPB, the party receiving the complaints must notify the other party and document the complaint in writing in a Complaint Register. JEDIC and JEPB must reply to each complain in writing within 14 calendar days on the proposed solution and how it will be implemented. If the problem is resolved and the complainant is satisfied with the solution, JEDIC should document the complaint and resolution process in its Complaint Register, with quarterly reporting to JPMO.

(iii) Step 3: If the AP is not satisfied with the proposed solutions in Step 2, he/she can, upon receiving the reply, take the grievance to the JPMO complaints center. Upon receiving the complaint, the center must deal with it within 14 calendar days. Once a complaint is documented and put on file, the JPMO complaints center will immediately

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notify the ADB. After discussing the complaint and potential solutions among ADB, JPMO, the LIEC, the AP and the contractor, JPMO must provide clear answers to the complainant within 14 calendar days from when the complaint is documented and put on file.

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

Figure A.1: Proposed Grievance Redress Mechanism

G. Cost Estimates

34. Cost estimates for EMP implementation, including mitigation measures, environmental impact monitoring, public consultation and training are $100,000, $30,000, $7,100 and $8,800 respectively (see Tables A.2, A.4, A.7 and A.8). Total budget for implementing these 4 items of

A-29 the EMP is therefore $146,000. Excluded from the costs estimates are infrastructure costs which relate to environment and public health but which are already included in the project direct costs. Excluded are also capacity building packages, the remuneration costs for environment specialists within JPMO and JEDIC, loan implementation consultants, and technical experts on equipment operation and maintenance, which are covered elsewhere in the project budget.

35. JEDIC (during construction) and the O&M units (during operation) will bear all environmental impact monitoring costs and will ensure the necessary budgets are available for the Environmental Monitoring Station. Contractors will bear the costs for all mitigation measures during construction, including those specified in the tender and contract documents as well as those to mitigate unforeseen impacts due to their construction activities. The O&M units will bear the costs related to mitigation measures during operation. JEDIC will bear the costs related to environmental supervision during construction and operation. The project as a whole (through JPMO) will bear the costs for training, for coordinating the Grievance Redress Mechanism (GRM), and the Loan Implementation Environment Consultants under contract to JPMO.

H. Mechanisms for Feedback and Adjustment

36. The EMP is a live document. The need to update and adjust the EMP will be reviewed when there are design changes, changes in construction methods and program, unfavorable environmental monitoring results or inappropriate monitoring locations, and ineffective or inadequate mitigation measures. Based on environmental monitoring and reporting systems in place, the JPMO (with the support of the LIEC) shall assess whether further mitigation measures are required as corrective action, or improvement in environmental management practices are required. JPMO will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP will be submitted to ADB for review and approval, and will be disclosed on the project website. The project implementation plan and schedule is shown in Table A.9.

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Appendix 1 1

JMG ADB

JEPB JPMO

Loan implem. JEDIC consultant

Public complaints

EMS, CSC

Contractors (during O&M Units (during construction) cooperation)

Implementation of Mitigation

Measures, Monitoring

Program and Public

Consultation Plan Reporting

Supervision

Documentation of EMP Implementation and Performance/Information Flow

Action

Public complaint

Response

Figure A.2: Mechanism for Feedback and Adjustment

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Table A.9: Overall project implementation plan 2012 2013 2014 2015 2016 2017 2018 Task Name Start Finish 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 A. Design and Monitoring Framework 1. Wastewater collection and treatment Nov 2012 Aug 2016 Land acquisition and resettlement Mar 2013 Feb 2014 Design and tender documentation Nov 2012 Jun 2013 Tendering Jul 2013 Feb 2014 Construction and equipment installation Mar 2014 Aug 2016 Wastewater treatment plant Mar 2014 Aug 2016 Wastewater pipes Mar 2014 Aug 2016

2. Urban transport and utility facilities Nov 2012 Oct 2016 Land Acquisition and Resettlement Nov 2012 Mar 2014 Design and Tender Documentation Nov 2012 Jun 2013 Tendering Jan 2013 Jun 2014 Construction and Equipment Installation Jul 2013 Oct 2016 North Riverside Road Jan 2014 Oct 2016 South Riverside Road Sep 2013 Oct 2015 Panxuan West Road Extension Sep 2013 Oct 2015 Xiyi Bridge Jul 2013 Oct 2015 Jiu-Yin Road Bridge Jul 2013 Jun 2015

3. Windbreak plantation Oct 2012 Mar 2018 Design and Tender Documentation Oct 2012 Sep 2014 Tendering May 2014 Mar 2015 Planting and Construction Apr 2015 Mar 2018 South Bank Apr 2015 Mar 2018 North Bank Apr 2016 Mar 2018

B. Management Activities Develop contract packages and procurement plan Aug 2012 Dec 2012 Consultant selection procedures Dec 2012 Sep 2013 Environment management plan key activities Jul 2013 Jun 2018 Gender action plan key activities Jul 2013 Jun 2018 Social development action plan key activities Jul 2013 Jun 2018 Annual/Mid-term review Feb 2016 Project completion report Jun 2018

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APPENDIX 1

Jiuquan City Environmental Protection Bureau Document [2012] No.241 Approval of Jiuquan Integrated Urban Environment Improvement Project EIA Report

(Unofficial translation by PPTA consultant)

Jiuquan Integrated Urban Environment Improvement Project EIA Report PMO:

The EIA report for Jiuquan Integrated Urban Environment Improvement Project prepared by Lanzhou University and submitted by PMO has been received. An evaluation meeting participated by relevant specialists was held on 14 August 2012 and comments for report revision were provided. Afterwards the EIA report was revised based on these comments.

Based on review comments given by the specialists, our response to the EIA report (version for approval) is given as below:

1. Comments from the specialist team are agreed. 2. This EIA report is well prepared with comprehensive contents, clear environmental protection objectives, appropriate assessment levels and applicable standards, and objective and reliable conclusions. The proposed WWTP has reasonable site and mature treatment process. This EIA report is approved and the approved EIA report can provide basis for environment protection during project implementation. 3. The ADB financed project includes construction of road, bridge and associated pipelines, windbreak tree plantation, WWTP and associated sewer networks. 4. Environmental “Three Synchronies” regulation should be strictly followed during project construction and all the proposed mitigation measures should be taken during construction and operation to prevent adverse impacts to construction site and surrounding area in the following aspects: (a) Control of dust suspension; (b) Control of construction noise; (c) Appropriate arrangements for excavation, backfill and restoration to minimize adverse impact to vegetation, transport and surrounding environment; (d) Proper disposal of waste soil and construction debris; and (e) Stringent implementation of monitoring plan. 5. Pollution control measures should be taken during WWTP construction and operation in order to ensure compliance of the WWTP effluent with the specified discharge standard, including: (a) The industrial wastewater should be adequately pretreated to meet specified standard before received by the WWTP. “Municipal WWTP Pollutant Discharge Standard” (GB18918-2002) Class 1B is applied to WWTP effluent and Class 1A for reuse purpose. (b) Odor control should be paid attentions. Online wastewater flow meter and monitoring APPENDIX 1

system should be equipped. (c) Noise reduction measures should be taken for sludge treatment workshop and pump station to meet the noise limits at the WWTP boundary. Measures should be taken for proper disposal of sewage sludge, debris and domestic solid waste. (d) Wet dust settler should be installed for the 2t/h coal-burning boiler on WWTP site and the fume emission should meet Boiler Air Pollutant Emission Standard (GB 13271-2001). (e) Total allowable pollutant discharges each year during WWTP operation are specified as below: Parameter CODcr NH3-N TP TN BOD Fume SO2 Load, ton 1314 328.5 21.9 438 438 1.27 2.38

6. Approval from JEPB should be obtained prior to WWTP commissioning, and application for environmental inspection and acceptance should be done after three-months commissioning.

September 11, 2012

APPENDIX 2

Jiuquan City Environmental Protection Bureau Statement of Applicable Discharge Standards for the Proposed WWTP

(Unofficial translation by PPTA consultant)

Jiuquan City Construction Bureau,

The proposed WWTP, located 2km away from Jiuhang Road Beidahe River Bridge in the southeast, has the design treatment capacity 60,000 m3/day for near term and 100,000 m3/day for long term.

Beidahe River Basin is classified as Category III surface water body in accordance with national standard GB3838. In accordance with Municipal WWTP Pollutant Discharge Standard (GB 18918-2002), Class 1B standard is applied to the effluent from the proposed WWTP, and Class 1A will be followed for reuse applications.

March 13, 2012 APPENDIX 2 – EPB Letter on WWTP discharge standard

APPENDIX 3

Suzhou District Enviornmental Sanitation Bureau Document [2012] No.59

(Unofficial translation by PPTA consultant)

Agreement on Disposal of Sludge from the Proposed WWTP in the Landfill

Jiuquan Integrated Urban Environment Improvement Project PMO:

Based on your application and instruction from Suzhou District Government, we agree that the Jiuquan Sanitary Landfill will accept the sludge from the ADB financed WWTP for final disposal.

July 18, 2012 APPENDIX 3 – UESB Letter on sludge disposal

APPENDIX 4

Jiuquan Integrated Urban Environment Improvement Project PMO Letter [2012] No.81

(Unofficial translation by PPTA consultant)

Confirmation Letter on Application of WWTP Effluent to Power Plant

Based on needs of ADB financed project, relevant information of application of WWTP effluent to power plant is provided as below:

1. Suzhou Power Plant and Hongliuwa Power Plant will bear the capital cost of their water reclamation facilities respectively. 2. Centralized water storage tank and lifting station near the WWTP, transmission pipelines to the power plant and water reclamation facility within the power plant will be built. The reclaimed water will be used for cooling purpose. GB 1898-2002 Class 1A is applied to reuse water quality. 3. In the coming 20 years, reuse water demand of Suzhou Power Plant (2*600MW) will be 18,000 m3/day, and this is 30,000m3/day for Hongliuwa Power Plant. The total reuse water demand will be 48,000 m3/day. 4. The price of reuse water the power plants purchase from the WWTP will be RMB 0.8/m3.

August 24, 2012 APPENDIX 4 – JPMO Letter on WWTP effluent reuse

APPENDIX 5

Gansu Province Water Resources Bureau Taolai River Basin Water Resource Administration Bureau Document [2011] No.99

(Unofficial translation by PPTA consultant)

Comments on Water Allocation to ADB Financed Jiuquan Integrated Urban Environment Improvement Project for Ecological Purpose

Jiuquan City ADB PMO:

Implementation of the ADB financed Jiuquan Integrated Urban Environment Improvement Project will have great significance in improving flood control of Jiuquan urban area, restoring ecological environment of the river course and improving urban environment.

Water resource quantity of Taolai River Basin totals 1479.34 million cubic meters. Average annual runoff measured at Binggou Hydrologic Station of Taolai River is 645 million cubic meters. In accordance with Gansu Province Taolai River Basin Water Rights Allocation Program, water quantity allocated for ecological use is 130.2 million cubic meters, of which 94.1 is for Jiuquan City. In accordance with existing water resource allocation guidelines for Jiuqan City and Jiayuguan City, 10 of the 94.1 million cubic meters can be allocated to meet ecological water demand for river course, wetland and windbreak trees irrigation under Jiuquan Integrated Urban Environment Improvement Project.

July 6, 2011 APPENDIX 5 – Letter on windbreak tree irrigation water

APPENDIX 6

Suzhou District Forest Bureau Certification

(Unofficial translation by PPTA consultant)

In order to support WWTP construction under ADB loan project, Suzhou District Forest Bureau agrees with the proposed WWTP sludge disposal program, i.e., the treated sludge is hauled to the windbreak forest for use as fertilizer.

July 17, 2012 APPENDIX 6 – Suzhou Forestry Bureau Letter on use of sludge for windbreak tree plantation

APPENDIX 7

Overview of Existing Industries within Service Area of the Proposed WWTP Provided by Jiuquan City EPB

Industries in West-Suburb Industrial Park

No. Name of Industry Type of Industry Industrial Wastewater Volume, m3/year 1 Jiuquan Jiale Biological Sugar Making 33,750 Technology Company 2 Gansu Jinfeng Wind Power Wind Power 0 Equipment Manufacturing Company 3 Gansu Zhonghang Huiteng Wind Wind Power 0 Power 4 Jiuquan Zhongfu Lianzohng Wind Power 0 Composite Material Company 5 Jiuquan Zhongcai Wind Power Wind Power 6,205 Paddle Company 6 Jiuquan Tiancheng Wind Power Wind Power 160 Equipment Company 7 Gansu Jiuding Wind Power Wind Power 0 Composite Material Company 8 Jiuquan Xinmao Wind Power Wind Power 210 Equipment Manufacturing Company 9 Jiuquan New Energy Equipment Wind Power 0 Company 10 Jiuquan Zhulong Mechanical Wind Power 0 Manufacturing Company

Industries in South-Suburb Industrial Park

No. Name of Industry Type of Industry Industrial Wastewater Volume, m3/year 1 Jiuquan Rongtai Rubber Rubber Hose 6,270 Product Company 2 Jiuquan Guangyuan Wheat Malt 400,976 Processing Company APPENDIX 7

No. Name of Industry Type of Industry Industrial Wastewater Volume, m3/year 3 Baijia Food Company Dewatered Onion 44,605 4 Huarui Wind Power Assembling 605 Technology Company 5 Aokai Seed Screening Machine Seed Screening 443 Company Machine 6 Deyuan Food Company Castor Sugar 14,300 7 Haoniu Milk Product Company Milk Processing 23,000 8 Western Beer Company Beer 201,620 9 Xianfeng Seed Company Corn Seed 0 10 Western Agricultural Dewatered Onion 9,695 Technology Company 11 Jiuquan Cotton Protein Oil Vegetable Oil and Oil 5,592 Company Product 12 Dunhuang Fruit and Vegetable Plant Powder 661 Product Company 13 Qiuliang Biological Chemical Corn Starch 0 Engineering Company 14 Fukang Furniture Company Wood Furniture 370 15 Xianfeng Seed Company Corn Seed 3,000

Major industries have on-site pre-treatment systems and are connected to an online monitoring system to the local EPB. The EPB confirmed that all monitored industries complied with relevant discharge standards.

APPENDIX 8

Water Resources Analysis for Jiuquan Urban District

Water Resources in Jiuquan Municipality

1. Surface water resources. The three major river systems within Jiuquan Municipality – the Sule, Heihe, and Harteng Rivers – all originate from the Nanshan Glacier Region. The water source is snow melt, precipitation, as well as water from bedrock fissures. These rivers have a combined annual runoff of approximately 3.33 billion m3, with significant seasonal variations. The wet season occurs between July and October and the dry period is very long. In May and June, the water flow increases rapidly. The Beidahe River (which is part of the Heihe river basin), runs across the northern area of the city, with an average annual runoff of 640 million m3. 2. Groundwater. Groundwater in the region lies in the quaternary sand and gravel aquifer. According to related hydro-geological data from agencies including the hydropower bureau, the total groundwater recharge volume is 838 million m3 (dynamic reserve), mostly originating from underground runoff and infiltration from rainfall and irrigation fields.

Water Allocation, Water Rights Distribution Plan

3. In 2008, the Gansu Provincial Hydrological Bureau and the Taolai River Basin Management Bureau issued the Taolai River Basin Water Rights Distribution Plan. 1 This water rights distribution plan specifies the water rights and distribution of water resources in the river basin. In addition to the Taolai/Beida River, there are five other main rivers to the east including the Hongshui that are sources of surface water. Allocation of groundwater resources is also included in the plan. Based on mean annual flows and groundwater yields, the water resources available for use amount to 1,531 million m3 per year (Table A8.1), groundwater accounting for 39% of these water resources.

Table A8.1: Sources of Exploitable Water Resources of the Taolai River Basin 1 Taolai/Beida Hongshui Other rivers Groundwater Total 481.5 129.9 317.9 602.4 1,531 Note: Units are m3x106 per annum. Groundwater resources include both water from natural springs that becomes available at the surface, and sub-surface groundwater that must be pumped or drawn from wells. 4. There are four main water supply areas in the municipality based on administrative districts and river systems, including Jiayuguan City, West Suzhou District (Jiuquan urban area), East Suzhou District and Jinta County. The first level of water distribution allocates available water resources to these water supply areas. A second level of distribution allocates water within each water supply area to main categories of water use: household, industrial, agriculture and ecological. A third level of water distribution then allocates each category of water use to smaller administrative districts within each water supply area. Based on average water availability, the distribution of water resources to the main water supply areas is indicated in Table A8.2.

1 Gansu Provincial Hydrological Bureau, Taolai River Basin Management Bureau (2008). Taolai River Basin Water Rights Distribution Plan.

APPENDIX 8

Table A8.2: Water Allocations to Water Supply Areas of the Taolai River Basin 1 Water Supply Area Jiayuguan West Suzhou District East Suzhou Jinta Total (Jiuquan urban area) District Water Allocation 246.3 499.6 229.6 359.4 1,334.9 (m3x106)

5. According to water use, and integrated across all water supply areas in the Taolai river basin, the allocation of water resources to water use categories as shown in Table A8.3. Also shown is the distribution within West Suzhou District (Jiuquan urban area). 82 million m3 per year of water are allocated for domestic, industrial and ecological use in West Suzhou District, the urban area of Jiuquan. The ecological water use allocation is used mainly for watering plantations and grassland to combat wind erosion, and for urban lakes, wetlands and park maintenance. Note that there is a reserve of 56.5x106 m3 that is unallocated. This is water that could be allocated in future at the discretion of the Taolai River Basin Authority and/or municipal governments.

Table A8.3: Allocations by Water Use Category 2 TAOLAI RIVER BASIN Water Use Household Industrial Agricultural Ecological Reserved Total Water Allocation (m3 x 106) 61.5 145.6 1082.2 130.2 56.5 1,476 WEST SUZHOU DISTRICT (Jiuquan urban area) Water Allocation (m3 x 106) 28.2 16.5 418.0 37.0 500

6. Because water availability is variable from year to year, the water resources plan includes different sets of water allocations for different probabilities of exceedance of annual water resources: 90%, 75%, 25% and 10% in addition to mean water resources availability. Table A8.4 shows the changes in water allocations for these different conditions in West Suzhou District (Jiuquan urban area). It shows that allocations of water for irrigation are varied to suit the available water resources while other allocations remain unchanged. Water allocated for agricultural irrigation comprises from 84% to 88% of total water demand.

Table A8.4: Variation of Water Allocations Depending on Water Resources Availability, West Suzhou District 2 Water Use Household Industrial Agricultural Ecological Total 90% exceedance (m3x106) 26.0 16.5 425.9 37.0 505.4 percentages 5.2% 3.3% 84.3% 7.3% 100% 75% exceedance (m3x106) 26.0 16.5 456.4 37.0 535.9 percentages 4.9% 3.1% 85.2% 6.9% 100% 50% exceedance (m3x106) 26.0 16.5 499.7 37.0 579.2 percentages 4.5% 2.8% 86.3% 6.4% 100% 25% exceedance (m3x106) 26.0 16.5 550.4 37.0 629.9 percentages 4.1% 2.6% 87.4% 5.9% 100% 10% exceedance (m3x106) 26.0 16.5 581.0 37.0 660.5 percentages 3.9% 2.5% 88.0% 5.6% 100%

2 Gansu Provincial Hydrological Bureau, Taolai River Basin Management Bureau (2008). Taolai River Basin Water Rights Distribution Plan.

APPENDIX 8

Water Demand and Supply Forecast

7. Forecasts by the PPTA consultant using both per capita consumption and water consumption by categories came up with similar water demand of average daily demand in the Jiuquan urban area of 200,000 m3/d (73 million m3/a) by 2030 with peak daily water demand of 260,000m3/d. This is within the allocated 82 million m3/a of water for domestic, industrial and ecological use (see Table A8.3). Peak domestic water consumption will amount to 117,000 m3/d; peak industrial water consumption will amount to 115,000 m3/d; peak demand for ecological use will amount to 13,000 m3/d. Other uses, including water losses, will amount to 15,000 m3/d. The agricultural water demand will decrease from 5.61 million m3/d (2015) to 4.67 million m3/d (2030), as a result of improved irrigation practices. 8. In order to meet the water supply target, all the WTPs in the region will be expanded and a new wastewater reclamation plant will be built, as shown in Table A8.5. The municipal water supply and wastewater company has already started the relocation project for the No. 2 Water Treatment Plant (WTP) to avoid the impacts of construction of the future high speed rail on the drinking water source. After relocation, the capacity of the No. 2 WTP will be expanded to 100,000 m3/d.

Table A8.5: 2030 Water Supply Plan for the Jiuquan Municipality’s Central Urban Area

2030 Existing Service WTP Planned Footprint Water Source Service Area Capacity Population Capacity (104 m3/d) (ha) (104) Old part of the Central No. 1 WTP 1.0 1.0 4.8 Groundwater 5.43 Urban Zone No. 2 WTP 5.0 10.0 2.8 Groundwater West of Jiefang Road 16.94 Southern Suburbs No. 3 WTP 1.2 3.0 2.1 Groundwater 1.2 Industrial Zone Western Western Suburbs 1.0 6.0 2.7 Groundwater 1.0 Suburbs WTP Industrial Zone Longyuan WTP 1.0 2.0 0.4 Hongshui river South of the train station 3.43 Central urban area individual 2.4 - Groundwater water supplies Subtotal 11.6 22.0 28.0 Water Reclamation 1.2 4.0 - WWTP Effluent Reuse in power plant Plant Mostly military use; also Other Sources 1.5 - - Groundwater other entities with - individual water supplies Subtotal 2.7 4.0 Total 14.3 26.0 28.0 Source: PPTA sector assessment report, October 2012

9. The water supply capacity of the central urban area (to cover industrial, domestic and partly ecological uses) will reach 93 million m3 per year during the planning period, out of which 79 million m3 are directly attributable to the water rights distribution plan (using groundwater and river water as water source). 14 million m3/a will be supplied by the water reclamation plant. Water demand will reach 73 million m3 per year (Table A8.6). It can thus be concluded that: (i) water supply capacities in 2030 will

APPENDIX 8 be greater than demand, indicating that there sufficient water treatment and distribution capacities, also to cover peak daily water demand; and (ii) annual water extraction rates from groundwater and surface water (79 million m3/a) will remain within the 82 million m3/a allocated for domestic, industrial and ecological use in West Suzhou District, as defined in the Taolai River Basin Water Rights Distribution Plan.

Table A8.6: Water Balance for the Central Urban Area Current Short Term Mid Term Long Term Water Supply/Demand Status 2015 2020 2030 Peak Day Demand (104 m3/d) 11.20 16.00 20.40 26.00 Water Average Day Demand (104 m3/d) 8.62 12.31 15.69 20.00 Demand Annual Water Demand (104 m3) 3146 4493 5727 7300 Water Water Supply Capacity (104 m3/d) 9.20 17.20 21.20 26.00 Supply Annual Water Supply (104 m3) 3358 6278 7738 9300