4. Environmental Impact Assessment

E2711 V1 rev

WORLD BANK PROJECT Public Disclosure Authorized

ENVIRONMENT IMPACT ASSESSMENT REPORT FOR

URUMQI DISTRICT HEATING PROJECT SHUIMOGOU DISTRICT HEATING NETWORK COMPONENT Public Disclosure Authorized

Public Disclosure Authorized

Xinjiang Environmental Technology Consulting Center 2011.1 Public Disclosure Authorized Project Name: Urumqi District Heating Project

Project Leader: Xu Yan (Certificated EIA Engineer: A40040130600

EIA Team:: Xinjiang Environmental Technology Consulting Center Legal Representative: Zhou Wei

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CONTENTS

PREFACE...... 1

1. INTRODUCTION ...... 2

1.1 Background

1.2 EIA Overview

1.3 Assessment Scope, Protection Objectives, Period and Key Issues

1.4 Relevant Laws, Regulations, Technical Guidelines and Standards

2. PROJECT DESCRIPTION...... 8

2.1 Project Overview

2.2 Main Construction Contents

2.3 Associated Facilities

3. ENVIRONMENTAL AND SOCIETAL BASELINE...... 15

3.1 Natural Environment and Environmental Quality

3.2 Societal and Economic Status

3.3 Current Air Pollution Control and Management

3.4 Respiratory Disease Status

3.5 Key Environmentally Sensitive and Social Protection Areas

3.5.1 Current Status of Cultural Heritages

3.5.2 Ecologically Sensitive Areas

3.5.3 Noise Sensitive Points

3.5.4 Water Environmentally Sensitive Points

4. ENVIRONMENTAL IMPACT ASSESSMENT ...... 35

4.1 Impact Assessment during the Construction Phase

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4.2 Impact Assessment during the Operation Phase

4.3 Cumulative impacts of the two components

4.4 INDUCED IMPACTS...... 46

5. INFORMATION DISLOSURE AND PUBLIC CONSULTATION ...... 48

5.1 Objectives, Scope and Approaches

5.2 Process of Announcement and Consultation

5.3 Results and Feedbacks

5.3.1 Feedbacks on Information disclosures

5.3.2 Feedbacks to Interviews

5.3.3 Feedbacks from Meetings

5.4 Conclusions of Public Consultation

6. ANALYSIS OF ALTERNATIVES ...... 57

6.1 Alternatives of “With” and “Without” Project

6.2 Alternatives of Project Locations

6.3 Alternatives of Technology and Techniques

6.4 Alternatives of Heating Fuels

7 ENVIRONMENTAL MANAGEMENT PLAN...... 62

7.1 Institutional arrangement and supervision mechanism

7.2 Mitigation Measures

7.3 Environmental Monitoring Plan and Budget

7.4 Environmental Training Program

7.5 Reporting Mechanisms

7.7 MANAGEMENT PLANS TO ADDRESS SOCIAL IMPACTS...... 78

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8. DUE DILIGENCE REVIEW OF ASSOCIATED FACILITIES AND PROJECT ACTIVITIES IN 2010...... 80

8.1 Heat Sources

8.1.1 Current Status of Heat Sources

8.2 Project activity undertaken in 2010

9. CONCLUSIONS...... 84

References [1] “Circular of Forwarding the “Opinions on Promoting CHP to Fundamentally Resolve Air Pollution in Urumqi” ”, WuZhengBan [2006] No. 91,

the Urumqi Government, Dec. 2006 [2] “Notice about Air Pollution Control of Corporations including Xinjiang Xinlian Thermal Co. Ltd. within a Time Limit”, Wuzhengtong [2010] No.29, the

Urumqi Government, Mar. 2010 [3] “Prevention Program for Air Pollution in Winter of Urumqi (2010-

2015)”, UMEPB, Sep. 2009 [4] “Approval Comments on the “Environmental Impact Form for CHP Project of Urumqi Thermal Power Plant”, XinHuanPingShenHan [2010] No. 14,

XDEP, Jan. 2010 [5] “Circular about Approving and Forwarding the “Implementation Plan for Urumqi CHP Network Integration” ” (Wuzhengban [2010] No.127), the

Urumqi Government, 2010 [6] “Letter about Proper Disposal of Wastes Generated from Dismantlement of Small Boilers”, Headquarter Office for Coordination of Air Pollution Control

of Urumqi, Sep. 2010 [7] “Urban Heating Plan of Urumqi (2006-2020)”, the Urumqi Government,

2006 [8] “The Research of Causes of Air Pollution and Prevention and Control

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Strategy in Urumqi”, UMEPB, Dec. 2008

ANNEX ...... 86

Annex 1

TRAFFIC MANAGEMENT PLAN DURING IMPLEMENTATION OF THE PROJECT...... 86

1 PLAN FOR RELEVANT PREPARATION BEFORE CONSTRUCTION ... 86

1.1 WORKING IDEAS THAT PERSON IN CHARGE SHOULD HAVE BEFORE CONSTRUCTION...... 86

1.2 PREPARATION FOR APPROVAL BEFORE CONSTRUCTION...... 86

1.3 SITE VISIT ...... 87

1.4 DISCLOSURE OF IMPLEMENTATION PLAN...... 87

1.5 PREPARATION OF DIFFERENT TRAVEL PLANS FOR DIFFERENT SITUATION...... 88

1.6 SAFETY TRAINING BEFORE CONSTRUCTION...... 88

1.7 ESTABLISHMENT OF CONSTRUCTION FILES...... 88

1.8 DAILY TRAFFIC SAFETY GUARANTEE ORGANIZATION SYSTEM .. 88

CONSTRUCTION DUTY...... 89

2.2 SPECIAL CONDITIONS FOR SENSITIVE AREAS...... 89

2.3 IMPLEMENTATION RULES DURING CONSTRUCTION...... 90

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PREFACE

The concentration of sulfur dioxide and dust significantly exceeds the standards during the heating season in Urumqi, which indicates the coal-smoke pollution. According to the “Urban Heating Plan of Urumqi (2006-2020)”, the Urumqi government proposed a centralized space heating system supplied by Cogeneration of Heat and Power (CHP) plants. The government has initiated Urumqi District Heating Project (UDHP) and applied for the World Bank loan. The CHP includes two components: Component 1: Shayibake District Heating Network Component (SHN) Component 2: Urumqi CHP Shuimogou District Heating Network (UHN) The two components, which are municipal infrastructure projects, are relatively simple and not related to major physical works. The environmental impacts of such project are limited. According to relevant requirements of domestic environmental impact assessment (EIA), Environmental Impact Forms were prepared for the two components. The two forms were reviewed and approved in 2008 and 2010 respectively (see Table 0.1-1). Table 0.1-1 The Approvals of Domestic EIAs Project Type of EIA EIA Approval Approval time No. Approval document name document Agency Xinjing Department January, 2010 Environmental XinHuanPingHanSh 1 UHN of Environmental Impact Form en No. {2010}14 Protection Former Autonomous December, 2008 Environmental Regional XinHuanJianJianHa 2 SHN Impact Form Environmental n No. {2008}168 Protection Bureau

In December 2009, The Xinjiang Environmental Technology Consulting Center (XETCC) was commissioned by the Project Office of Urumqi Heat Reform and Building Energy Efficiency (HRBEE) International Technological Cooperation (POUITC) to prepare two EIA Reports for the components to submit to the World Bank in light of domestic Technical Guidelines of EIA and requirements on EIA in the World Bank safeguard policies. Being commissioned, The XETCC collected relevant information and investigated the proposed sites and the circumstances of the two components. The XETCC composed the “EIA Report for Shayibake District Heating Network” and the “EIA Report for Urumqi CHP Shuimogou District Heating Network”. In addition, an Executive Summary was prepared. This document is the “EIA Report for Urumqi CHP Shuimogou District Heating Network”. The EIA team would like all those agencies for their support and help, including the Xinjiang Department of Environmental Protection (XDEP), the Urumqi Municipal Construction Commission, the Urumqi Municipal Environmental Protection Bureau (UMEPB), the POUITC, the Urumqi Management Office of Heating Industry, the Urumqi District Heating Company (UDHC), EIA teams of the two component, feasibility study teams of the two components and the World Bank China office.

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1. INTRODUCTION

1.1 Background

As Urumqi has been experiencing urban expansion, rapid population growth and economic growth in the past decade, industrialization and urbanization have been promoted. In this context, energy consumption would increase significantly. The energy constrains on economic development and energy related environmental issues would become more evident. The concentration of sulfur dioxide and dust significantly exceeds the standards during the heating season in Urumqi, which indicates a typical coal-smoke pollution. The air pollution directly affects human health, traffic safety and sustainable economic development in Urumqi. According to the “11th Five Year Plan for National Economic and Social Development of China”, the “Medium and Long Term Special Plan of Energy Conservation of China”, the “Urban Heating Plan of Urumqi (2006-2020)”, the Urumqi government took the resource advantages and environmental features of the city into account and proposed a centralized space heating system supplied by Cogeneration of Heat and Power (CHP) plants. The government has initiated. Then, the government decided to initiate the Urumqi District Heating Project (UDHP) and applied for the World Bank loan. When the centralized heating and CHP are implemented as proposed in this project, the energy efficiency would be enhanced and air pollutant emissions would decreases, so that the ambient air quality could be improved, which would help to reach the goal of moderately prosperous society.

1.2 EIA Overview

1.2.1 Objectives of EIA In accordance with the “Law of the People's Republic of China on Environmental Impact Assessment”, the “Ordinance on Administration for Environmental Protection of Construction Projects”, “Circular about Strengthening the Management of Environmental Impact Assessment for Construction Projects Funded by the International Financial Organizations” and the World Bank Safeguard Policies as well as the procedures of domestic EIA and the World Bank’s EIA, the EIA team of this project assessed and concluded the positive effects of this project, identified, screened, predicted and analyzed the negative impacts, and proposed practical and effective mitigation measures for those inevitable impacts and environmental management plan. This EIA will be submitted to the World Bank and become one of the bases of their independent evaluation of this project. Meanwhile, this EIA will also be the basis of decision-making and integrated management of the government and the environmental management agency. 1.2.2 EIA Category In light of the “Circular about Strengthening the Management of Environmental Impact Assessment for Construction Projects Funded by the International Financial

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Organizations” (HuanJian[1993]No. 324) and requirements on EIA in OP4.01 of the World Bank Safeguard Policies, assessment factors were identified and screened in this EIA. The Shuimogou District Urumqi CHP Power Plant Heating Network (herein after “UHN”) pertains to centralized heating energy efficiency retrofitting project, which refers only to renovation, maintenance and updating. Generally speaking, the period of such project is short. Mature and reliable techniques are often applied to such project. The pollutant emissions are easy to control and the affected area is limited. Therefore, domestic EA category for this project assigned by Urumqi Environmental Protection Bureau (EPB) was EA form, which is simpler than EA report. However, according to updated World Bank requirements, a Category A of EIA is required for this project. 1.2.3 Preparation of the EIA Report Being commissioned, the Xinjiang Environmental Technology Consulting Center (XETCC) collected relevant information and investigated the proposed sites and the circumstances of the UHN. The XETCC analyzed the project features, construction specifications, scales, technologies, main pollution factors and potential environmental impacts, and composed the Terms of References (ToR) for the EIA of this project that had been submitted to the World Bank. Then, the “EIA Report for Component 2 of Urumqi District Heating Project: Urumqi CHP Shuimogou District Heating Network” was prepared based on the ToR.

1.3 Assessment Scope, Protection Objectives, Period and Key Issues

1.3.1 Assessment Scope and Protection Objectives The assessment scope of this project is: (1) In light of the Technical Guidelines of EIA, the basic assessment scope is identified on the basis of the proposed assessment class. (2) The environmental protection objectives and the concerned objects in the safeguard policies shall be included in the assessment scope if they are close to the basic assessment scope. (3) The areas that may be affected by the projects and activities related to the UHN shall be integrated into the assessment scope. The assessment scope and environmental protection objectives are shown in Table 1.3-1. Table 1.3-1 The Assessment Scope No Environmenta Assessment Scope Environmental Protection Objectives . l Factor The surrounding regions The residential, study and working areas of people of heating pipeline sensitive to air pollution, e.g., government network, pressure-isolated 1 Ambient air agencies, research and education areas, enterprises heat exchange stations and and institutes, schools, hospitals, sanitarium, substations with a radius resorts and office buildings, etc. of 200m The 100m upstream and Surface water 500m downstream of the 2 Surface water system and artificial canals. environment node where the heating pipeline runs across rivers 3 Acoustic The 200m regions away The residential, study and working areas of people

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environment from the heating pipelines sensitive to noise, e.g., government agencies, and the surrounding research and education areas, enterprises and regions of pressure- institutes, schools, hospitals, sanitarium, resorts isolated heat exchange and office buildings, etc. stations and substations with a radius of 100m Ecological The 200m regions away Natural and artificial greens, parks, attractions, 4 environment from the heating pipelines orchards and cultural heritages. The 100m regions away from the heating pipelines Social and economic actors in affected areas, e.g. and the surrounding Societal institutes, enterprises, residential areas, cultural 5 regions of pressure- issues and education areas, hospitals and commercial isolated heat exchange areas. stations and substations with a radius of 100m 1.3.2 Assessment Period This EIA analyzes issues in two phases, viz. the construction phase and the operation phase of this project. 1.3.3 Key Issues of the EIA Table 1.3-2 presents the key issues assessed in domestic EIA. Table 1.3-2 Key Issues of the EIA

Project name Contents of the EIA Key issues Format

(1) Collect data of regional environmental quality, conduct monitoring and assess the (1) Impacts of heat environmental baseline. exchange stations and Enviro (2) Analyze the impacts of heat exchange pipelines on the public. nmenta Component stations and pipelines on surface water, (2) Impacts of noise of l 2UHN ambient air, ecological environment and heat exchange stations Impact acoustic environment during the on nearby residential Form construction phase and the operation phase. areas. (3) Conduct Environmental supervision during the construction phase.

According to the World Bank’s policies, the key issues of this EIA include information disclosure, public consultation and environmental management plan.

1.4 Relevant Laws, Regulations, Technical Guidelines and Standards

The basis of this EIA includes relevant plans of Urumqi, domestic laws, regulations and standards and the World Bank’s safeguard policies. 1.4.1 Domestic Laws and Regulations The laws and regulations that are based for this EIA are shown in Table 1.4-1. Table 1.4-1 List of Laws and Regulations No. Title Document No. Time Environmental Protection law of the People’s No. 22 Presidential 1 1989.12.26 Republic of China Decree The Law of the People's Republic of China on 30th Meeting of 9th 2 2003.9.1 Environmental Impact Assessment NPC 3 The Law of the People's Republic of China on 15th Meeting of 9th 2000.9.1

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No. Title Document No. Time the Prevention and Control of Atmospheric NPC Pollution The Law of the People’s Republic of China on 32nd Meeting of 4 2008.6.1(Amended) Prevention and Control of Water Pollution 10th NPC The Law of the People’s Republic of China on 22nd Meeting of 8th 5 Prevention and Control of Pollution From 1997.3.1 NPC Environmental Noise The Law of the People’s Republic of China on 13th Meeting of 6 Prevention of Environmental Pollution Caused 2005.4.1(Amended) 10th NPC by Solid Waste No. 74 Presidential 7 Water Law of the Peoples Republic of China 2002.10.1(Amended) Decree The Law of the People’s Republic of China on 20th Meeting of 7th 8 1991.6.29 Water and Soil Conservation NPC Cleaner Production Promotion Law of the No. 72 Presidential 9 2003.1.1 People’s Republic of China Decree Energy Conservation Law of the People’s No. 90 Presidential 10 2008.4.1 Republic of China Decree The Law of Land Administration of the No. 8 Presidential 11 2004.8.28 People’s Republic of China Decree City Planning Law of the People’s Republic of 11th Meeting of 7th 12 1989 China NPC Ordinance on Administration for No. 253 Decree of 13 Environmental Protection of Construction 1998.11.29 the State Council Projects Classified Management Lists for No.2 Decree of the Environmental Protection of Construction Ministry of 16 Projects (Promulgated by the Ministry of 2008.10.1 Environmental Environmental Protection of the People’s Protection Republic of China Interim Procedure on the Public Participation HuanFa[2006]No. 17 2006.2.14 In Environmental Impact Assessment 28 Circular about Strengthening the Management of Environmental Impact Assessment for HuanJian[1993]No 18 1993.6.21 Construction Projects Funded by the .324 International Financial Organizations Regulations on Development of Thermal- JiJiChu[2000]No. 19 2000.8.25 power Cogeneration 268 The State Council’s Decision About GuoFa[2006]No. 20 2006.8 Strengthening Energy Conservation 28 Several Opinions of State Council to Further GuoFa[2007]No.3 21 Promote Economic and Social Development in 2007.3 2 Xinjiang Guidance on the Pilots of Urban Heat System JianCheng[2003]N 22 2003.7.21 Reform o. 148 Environmental Protection Regulations of 2005.05.27(Amended 23 Xinjiang ) Xinjiang Government’snotice of Key 24 Prevention Zones, Monitoring Zones and 2000.10.31 Remediation Zones of Soil Erosion 25 Ecological Zoning of Xinjiang 2003.9 Water Environmental Function Zoning of XinZhengHan[200 26 2003.10 Xinjiang 2]No. 194 Regulations of Urumqi on the Prevention and 14th Meeting of 27 2005.3.1 Control of Atmospheric Pollution 10th People’s

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No. Title Document No. Time Council of Xinjiang Administration Measures of Urmqi on 28 Prevention and Control of Atmospheric 2008.12.30 Pollution Supervision and Administration Measures of No. 84 Decree of 29 Urumqi on Pollutant Emissions from Xinjiang 2007.3.1 Automobile Government Circular of Forwarding the “Opinions on Promoting CHP to Fundamentally Resolve Air WuZhengBan[200 30 2006.12 Pollution in Urumqi” (Document promulgated 6]No. 91 by the Urumqi Government) No. 48 Decree of Administration Measures of Urumqi on Urban 31 People’s 2002.12.5 Construction Waste Government Circular about Establishing the Leading WuZhengBan[200 32 Committee of Urumqi Centralized Heating 2009.12.17 9]No. 312 Energy Efficiency Retrofitting Project Notice about Air Pollution Control of Wuzhengtong 33 Corporations including Xinjiang Xinlian 2010.3.19 [2010]No.29 Thermal Co. Ltd. within a Time Limit

1.4.2 Technical Guidelines and Standards (1) Technical Guidelines Technical guidelines for environmental impact assessment-General principles (HJ/T2.1-2.3-93) Technical guidelines for environmental impact assessment- Atmospheric environment (HJ 2.2-2008) Technical guidelines for environmental impact assessment- Surfacewater environment (HJ/T 2.3-93) Technical guidelines for noise impact assessment (HJ 2.4-2009) Technical guidelines for environmental impact assessment- Ecological environment (HJ/T19-1997) Technical Guidelines for Environmental Risk Assessment on Projects (HJ/T169-2004) Technical Code on Comprehensive Control of Soil Erosion (GB/T16453.1-6- 96) Standards for Classification and Gradation of Soil Erosion (SL190-2007) Technical Code on Soil and Water conservation of Construction Projects (GB50433-2008) (2) Standards Ambient Air Quality Standard (GB3095-1996) and its revised lists Environmental quality standards for noise (GB3096-2008) Environmental Quality Standard for Surface Water (GB3838-2002) Standards for Classification and Gradation of Soil Erosion (SL190-2007) Integrated Emission Standard of Air Pollutants (GB16297-1996) Emission Standard of Air Pollutants for Coal-fired Boiler (DB65/ 2154-2010) Integrated Wastewater Discharge Standard (GB8978-1996) Noise Limits for Construction Site (GB12523-90)

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Emission Standard for Industrial Enterprises Noise at Boundary (GB12348- 2008) Standard for Pollution Control on the Security Landfill Site for Hazardous Wastes (GB18598-2001) Standard for Pollution Control on Hazardous Waste Storage (GB18597-2001) Standard for Pollution Control on the Storage and Disposal Site for General Industrial Solid Waste (GB18599—2001) Standard for Pollution Control on the Landfill Site of Municipal Solid Waste (GB16889-2008) 1.4.3 Environmental and Social Safeguard Policies of the World Bank (1) OP 4.01 Environmental Assessment; (2) BP17.50 Information Disclosure 1.4.4 Project Documents (1) Outline of Urban Master Plan of Urumqi (2009-2020) (2) Urban Heating Plan of Urumqi (2006-2020) (3) Adjustment and Implementation Plan of Energy Structure for Heating of Urumqi (2010-2015), 2010.1 (4) Energy Development and Conservation Plan of Urumqi (2008-2015), 2009.5.8 (5) Thermal- Power Cogeneration Plan of Urumqi (2008-2020) (6) The Prevention and Control Plan for Air Pollution of Urumqi (2008-2020), 2008.8 (7) Prevention and Control Strategy for Air Pollution of Urumqi, Tsinghua University, Peking University, etc. 2008.12 (8) Prevention Program for Air Pollution in Winter of Urumqi (2010-2015), UMEPB, 2009.9 (9) Proposal of Shuimogou District Urumqi CHP Power Plant Heating Network, Beijing Gas and Heating Engineering Design Institute, 2009.12 (10) Feasibility Study of Shuimogou District Urumqi CHP Power Plant Heating Network, Beijing Gas and Heating Engineering Design Institute, 2010.11 (11) Environmental Impact Form of Thermal- Power Cogeneration Heating Network Project of Urumqi Power Plant, The Institute of Hydrogeology and Environmental Geology, 2010.1 (11) Approval Comments on the “Environmental Impact Form of Thermal- Power Cogeneration Heating Network Project of Urumqi Power Plant”, XinHuanPingShenHan[2010]No.14, XDEP, 2010.1 (12) Noise Zoning of Urumqi On the Basis of “Standard of Environmental Noise of Urban Area”, UMEPB, 2003.6

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2. PROJECT DESCRIPTION

2.1 Project Overview

2.1.1 Project Name, Type and Location Project name: Shuimogou District Urumqi CHP Power Plant Heating Network (herein after “UHN”) The owner: The Project Office of Urumqi HRBEE International Technological Cooperation (POUITC) Project type: Newly building Location: concentrated in Shuimogou District of Urumqi. The project location is shown in Figure 2.1-1. 2.1.2 Project Specification The project contents are specified in Table 2.1-1.

Table 2.1-1 Project Specification of Component of UHN Construction Sub-project Notes Contents L1: heating parameter 120/70 L1, L2(Primary and Maximal diameter: DN1200 secondary) pipeline 54.108km Pipeline network L2: heating parameter 90/65 network Maximal diameter: DN1000

Pressure- isolated heat New pressure-isolated 1 Absolutely new construction. exchange heat exchange station station Monitoring and Dispatching, monitoring Absolutely new construction, built controlling and controlling center of 1 in the pressure-isolated heach center the UDHC exchange station

Heat metering heat metering station at 1 station the CHP plant

46 new stations; 45 existing boilers New and renovated 91 and old heat supply stations will be substations rebuilt as substations. Substation

2.1.3 Staffing To facilitate the management of the heating network, a Shuimogou District Branch Heating Company will be incorporated right after the project is completed. The branch is affiliated to the UDHC. Staffing of the company consists of operation personnel, control center personnel, technical management personnel and

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2.2 Main Construction Contents

The main content of UHN is the thermal- power cogeneration network project of 2×330MW heating units of the Urumqi Thermal Power Plant (UTPP). The heating area goes northward to East Extension of Kashi Road connected with Dongshan District Industrial Park, westward to Hetan Road, eastward to Xuelianshan, and southward to Minzhu Road. The heating area covers about 14,730,000 m2. The heat load is 951MW. The heating area is shown in Figure 2.2-1. The heating pipeline network will be laid along the civil roads. No land acquisition is needed. The new pressure-isolated heat exchange station will be located at the south of the East Extension of Suzhou Road, 2km west of Qidaowan Road. Area of required land acquisition will be 3500 m2. 2.2.1 Heating Pipeline Network The heating pipeline network consists of two parts, viz. L1 heating network (thermal power plant- pressure-isolated heat exchange station) and L2 heating network (pressure-isolated heat exchange station- users’ substations). L1 heating network is the transmission network from the UTPP to the pressure-isolated heat exchange station. The users at the north to Suzhou Road can directly be accessed to the L1 network. L2 heating network is the distribution network from the pressure- isolated heat exchange station to the users’ substations. The pressure-isolated heat exchange station is located at the south of Suzhou East Road and the west of the proposed Xinjiang International Exhibition and Convention Center South Road. It is about 2km from Qidaowan Road in the east and about 12km from the UTPP.

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(1) L1 pipeline network (thermal power plant- pressure-isolated heat exchange station) Trunk line: the UTPP- going southward along truck road- No. 4 road of the industrial park- East Extension of Henan Road- pressure-isolated heat exchange station Branch line: Henan East Road- Exhibition and Convention Center- North Extension of Nanhu Road (2) L2 pipeline network (pressure-isolated heat exchange station- users’ substations) The L2 heating network of this project includes east trunk line, west trunk line, Wenquan East Road branch line and Karamay East Road connection line. The west trunk line: pressure-isolated heat exchange station- Suzhou Road- Nanhubei Road- Nanhuzhong Road- Nanhunan Road- Karamay East Road- Existing pipeline network of Hualing Boiler The east trunk line: pressure-isolated heat exchange station- Liudaowan Road- Karamay East Road- Weihuliang Thermal Power Plant trunk line Wenquan East Road branch line: planned Outer Ring Road- Qidaowan Road- Wenquan East Road to Vist Boiler Karamay East Connection line: west truck line- East Karamay Road- east trunk line. Figure 2.2-1 The heating pipeline network of the UHN 2.2.2 Pressure-isolated heat exchange station One new pressure-isolated heat exchange station will be built in the UHN, which will be located at 12km southwest of the UTPP, the south of the East Extension of Suzhou Road and 2km west of Qidaowan Road. The pressure-isolated heat exchange station will cover an area of about 3.5hm2. Its designed pressure is 2.5MPa. The main equipment of the pressure-isolated heat exchange station include pressure-isolated heat exchanger, L2 network circulating water pumps, L2 network makeup pumps, variable speed hydraulic coupling, water softener equipment, deaerators, pumps and other auxiliary equipment. Figure 2.2-2 presents the layout diagram of the pressure-isolated heat exchange station. 2.2.3 Substations There will be 160 substations to build in the UHN, including 46 new stations and 45 renovated ones. 69 existing substations will be taken use of. According to the results of hydraulic calculation, the L1 network is connected to all substations; the design pressure level is 2.5MPa of L1 thermal network from the pressure-isolated heat exchange station to the substation of East Karamay Road; and the designed pressure level is 1.6MPa of the rest substations. A plate exchanger, which is economical and occupies less space, should be installed in the substation. Equipment, like shutdown and control valves, controller, circular pumps, variable stabilization makeup pump and flowmeter, etc. should also be set. The 69 existing substations are listed in Table 2.2-1. 91 new and renovated substations are listed in Table 2.2-2 and Table 2.2-3. The locations of the stations are shown in Figure 2.2-3.

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Table 2.2-1 List of Existing Substations No of NO. Former owner Construction contents substations Hualing Peak balancing Coal- Install automatic control devices on 44 heat 1 44 fired Boiler Room exchange stations and heat meters in the boilers Wuhui Coal-fired Boiler Install automatic control devices on 12 heat 2 12 Room exchange stations and heat meters in the boilers Jinfang Large Coal-fired Install automatic control devices on 12 heat 3 12 Boiler Room exchange stations and heat meters in the boilers Vist Large Coal-fired Boiler Install automatic control device on 1 heat 4 1 Room exchange station and heat meter in the boiler Total 69

Table 2.2-2 The Scale and Quantity of Renovated Substations No. Name Type No. Construction contents Coal-fired Boiler Renovate the 6 heat exchange stations with 1 Room of Friendship Renovated 6 primary-side technology on and Install heat Garden meters in the boilers Large thermal Coal- Renovated Renovate the 12 heat exchange stations with 2 fired Boiler Room of 12 primary-side technology on and Install heat Bus Company meters in the boilers Large Coal-fired Renovated Renovate the 7 heat exchange stations with 3 Boiler Room of 7 primary-side technology on and Install heat Xinkuang Group meters in the boilers Large Coal-fired Renovated Renovate 4 air-water heat exchange stations Boiler Room of and Install heat meters in the boilers 4 4 Changqing Industry and Trade Liudaowan Village Renovated Renovate the 11 heat exchange stations with 5 Coal-fired Boiler 11 primary-side technology on and Install heat Room meters in the boilers Jikun Hospital Boiler Renovated Primary water pipeline, civil works ofand 6 1 Room equipment in the heat exchange station Hot Spring Sanitarium Renovated Primary water pipeline, civil works ofand 7 1 Boiler room equipment in the heat exchange station Xinjiang Exploration Renovated Primary water pipeline, civil works ofand 8 1 Machinery Centre equipment in the heat exchange station Second Affiliated Renovated Primary water pipeline and equipment in the 9 Hospital of Medical 1 heat exchange station University Xinhua Printing Renovated Primary water pipeline and equipment in the 10 1 Factory heat exchange station Total 45

Table 2.2-3 The Scale and Quantity of New Substations Numbe No. Name Type Construction contents r Primary water pipeline and 1 Convention Center (Level-1 Network) New 1 equipment in the heat exchange station 2 Lvchengbeihe Phase I (Level-1 New 1 Primary water pipeline and

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Network) equipment in the heat exchange station New Primary water pipeline and Phase I of Corps Comminity (Level-2 3 1 equipment in the heat Network) exchange station New Primary water pipeline and 4 Mine Shantytown (Level-2 Network) 1 equipment in the heat exchange station New Primary water pipeline and Inclined Shaft Shantytown (Level-2 5 1 equipment in the heat Network) exchange station New Primary water pipeline and Civil Servant of Kangzhuang Road 6 1 equipment in the heat (Level-2 Network) exchange station New Primary water pipeline and 7 Mine Shantytown (Level-2 Network) 1 equipment in the heat exchange station New Primary water pipeline and Liudaowan Coal Mine School for 8 1 equipment in the heat Children of Workers exchange station New Primary water pipeline and Economic Housing Area (Level-1 9 1 equipment in the heat Network) exchange station Lvchengbeihe Phase II (Level-1 New 1 Primary water pipeline and 10 Network) equipment in the heat exchange station New 1 Primary water pipeline and Civil Servant Community(Level-1 11 equipment in the heat Network) exchange station New 1 Primary water pipeline and 12 Lvcheng Staff(Level-1 Network) equipment in the heat exchange station New 1 Primary water pipeline and 13 Shantytown (Level-2 Network) equipment in the heat exchange station New 1 Primary water pipeline and Phase of CorpsComminity (Level-2 14 equipment in the heat Network) exchange station New 1 Primary water pipeline and Wenlong Real Estate (Level-2 15 equipment in the heat Network) exchange station New 1 Primary water pipeline and Dongwan Shantytwon(Level-2 16 equipment in the heat Network) exchange station New 1 Primary water pipeline and Dongwan Shantytwon(Level-2 17 equipment in the heat Network) exchange station New 1 Primary water pipeline and Hengshenghengchan 18 equipment in the heat Community(Level-2 Network) exchange station New 1 Primary water pipeline and Xinjiang Coking Coal Group 19 equipment in the heat Financing House (Level-2 Network) exchange station New 1 Primary water pipeline and Water District Public Security Bureau 20 equipment in the heat / Entai Printing Factory exchange station

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New 1 Primary water pipeline and Second Affiliated Hospital Financing 21 equipment in the heat Housing exchange station New 1 Primary water pipeline and Second Affiliated Hospital Financing 22 equipment in the heat Housing exchange station New 1 Primary water pipeline and 23 Urumqi Evening News equipment in the heat exchange station New 1 Primary water pipeline and 24 Badaowan Intensive Housing equipment in the heat exchange station New 1 Primary water pipeline and Areas on Both Sides of Henan East 25 equipment in the heat Road (Level-1 Network) exchange station New 1 Primary water pipeline and Areas on Both Sides of Henan East 26 equipment in the heat Road (Level-1 Network) exchange station New 1 Primary water pipeline and Areas on Both Sides of Henan East 27 equipment in the heat Road (Level-1 Network) exchange station New 1 Primary water pipeline and Areas on Both Sides of Planned Outer 28 equipment in the heat Ring (Level-2 Network) exchange station West Area of Planned Outer New 1 Primary water pipeline and 29 Ring(Xinkuang Shantytown equipment in the heat Reconstruction) exchange station New 1 Primary water pipeline and Broadcasting Building (Level-1 30 equipment in the heat Network) exchange station New 1 Primary water pipeline and 31 News Publishing (Level-1 Network) equipment in the heat exchange station New 1 Primary water pipeline and 32 Lijing Street Area (Level-2 Network) equipment in the heat exchange station New 1 Primary water pipeline and Areas on Both Sides of Nanhu Road 33 equipment in the heat (Level-2 Network) exchange station New 1 Primary water pipeline and Areas on Both Sides of Nanhu Road 34 equipment in the heat (Level-2 Network) exchange station New 1 Primary water pipeline and Communication and Production Base 35 equipment in the heat of Henan Road (Level-1 Network) exchange station New 1 Primary water pipeline and Audi 4S Shop / Surrounding Areas 36 equipment in the heat (Level-1 Network) exchange station New 1 Primary water pipeline and Areas on Both sides of Henan East 37 equipment in the heat Road (Level-1 Network) exchange station New 1 Primary water pipeline and Planning Area of Hot Spring East 38 equipment in the heat Road (Level-1 Network) exchange station Planning Area of Hot Spring East New 1 Primary water pipeline and 39 Road (Level-1 Network) equipment in the heat

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exchange station New 1 Primary water pipeline and Planning Area of Hot Spring East 40 equipment in the heat Road (Level-1 Network) exchange station Wenquan East Road and Weilianghu New 1 Primary water pipeline and 41 Plant Area (Level-2 Network) equipment in the heat exchange station New 1 Primary water pipeline and Planning in the Weilianghu Heating 42 equipment in the heat Area (Level-2 Network) exchange station New 1 Primary water pipeline and Planning in the Weilianghu Heating 43 equipment in the heat Area (Level-2 Network) exchange station New 1 Primary water pipeline and Planning in the Weilianghu Heating 44 equipment in the heat Area (Level-2 Network) exchange station New 1 Primary water pipeline and Planning in the Weilianghu Heating 45 equipment in the heat Area (Level-2 Network) exchange station Wenquan East Road and Weilianghu New 1 Primary water pipeline and 46 Plant Area (Level-2 Network) equipment in the heat exchange station Total 46

2.2.4 Metering room of the power plant In order to ensure the main heat sources of this project can measure the heat with the heating network management company, a metering room needs to be built in the heating network of the thermal power plant with a building area of 40m2.

2.3 Associated Facilities

One CHP plant and peak load balancing boilers are heat sources of this project. See the details about these associated facilities in Chapter 8.

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3. ENVIRONMENTAL AND SOCIETAL BASELINE

3.1 Natural Environment and Environmental Quality

3.1.1 Overview of Natural Environment 3.1.1.1 Geographical Location Both of the two components of the UDHP are located in Urumqi city. Urumqi is the capital of Xinjiang Uygur Autonomous Region, the center of Eurasia It lies at E 86°37 33 to E88°58 24 and N42°45 32 to 44°08 00 , at the north foot of the midway Tianshan Mountain and the southern edge of Junggar Basin. The city goes in a line covering 14,206km2 with 302.8km2 built up area. In total, seven districts and one county (Tianshan District, Saybagh District, Xinshi District, Toutunhe District, Shuimogou District, Dabacheng District, Midong District and Urumqi County) are governed under Urumqi. The Shuimogou District is related to component 2: the UHN. The Shuimogou District lies in the northeast of Urumqi with the area of 121.7km2. It goes from Hongshan Road and is bordered by Tianshan District in the south and by Midong New District in the northeast, by Xinshi District in the east over Hetan Road. In recent year, Urumqi city has been expanded northward where the infrastructure is being improved. The planned heating area goes northward to East Extension of Kashi Road connected with Dongshan District Industrial Park, westward to Hetan Road, eastward to Xuelianshan, and southward to Minzhu Road. 3.1.1.2 Topographical Features Urumqi City is surrounded by mountains. Most regions are located in mountain- plains with an open alluvial plain in the north. The terrain is higher in the southeast than in the northwest. The height of Urumqi is 680-920m with a mean altitude of 800m. The component 2: the UHN mainly relates to Shuimogou District. Shuimogou District is located at loesses hilly zone in the northwestern piedmont of east Tianshan Mountains Bogda Peak with undulating terrain. The eastern region is higher than the west. The average elevation is around 750m. The eastern area is undulating valley- hill-tableland region. The elevation difference along the UHN is obviously high. The main heat sources lie lower than the users. The surface elevation of heat sources is 710m. The surface elevation of the farthest user is 863m. The elevation difference between the low and high points is 153m. 3.1.1.3 Water Systems Five water systems lie in Urumqi. They are Urumqi River water system, Toutun River water system, Ziwopu water system, Dabacheng water system and Dongshan water system. The UHN goes across the Shuimo River. The Shuimo River starts from the Di Hill at the west to Dong Hill and flows through the Shuimogou District from the south to the east. It passes Qidaowan, enters in the Midong District and finally runs into Taqiaowan Reservoir. The length of Shuimo River is about 60km. Its annual runoff is 46 million m3 with catchment area of 66km2.

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3.1.1.4 Climate and Weather Urumqi lies in the center of Eurasia and far from the sea. It falls within the mid- temperate zone arid continental climate zone. The climate features include: hot summer and cold winter with evident weather changes and large temperature difference between the daytime and nighttime. The precipitation is low in Urumqi and shows a vertical increment while the height increases with high evaporation. There are big differences of precipitation among seasons. Inversion layer can be detected in winter. The prevailing wind direction is northwest, which is significantly affected by Tianshan Mountain. Mountain and valley wind is obvious. Days with calm wind is prevailing in winter. When it is sunny, the wind direction is south in the night, which is mountain wind while north wind blows in the day, which is valley wind. Heavy wind blows when season changes to spring or autumn. The annual frequency of temperature inversion is high in Urumqi due to the terrain. Particularly in heating season, the temperature inversion lasts long and features strong and thick with low mixed layer. In short, the atmospheric diffusion condition is extremely bad combined with dry air, low precipitation and less precipitation days. The air purification ability of Urumqi is weak. Thus, the weather conditions make air pollution serious, particularly during the long weather. The climate features of Urumqi are listed in Table 3.1-1.

Table 3.1-1 Main Meteorological Parameters of the Urumqi City Item Data Item Data Proportion of Annual average 6.1 precipitation in 40% temperature spring in one year Extreme maximum Annual mean 40.5 277.6mm temperature precipitation Extreme minimum Daily maximum -41.5 57.7mm temperature precipitation Monthly average Hourly maximum 23.0 13.4mm temperature in summer precipitation Annual prevailing wind Annual mean Northwest 2266.0mm direction evaporation Annual maximum wind Maximum frozen soil 30m/s 1.33m speed depth Maximum snowcover Annual mean wind speed 2.3m/s 39cm thickness

3.1.1.5 Soil and Vegetation The original soil type of Urumqi is grey desert soil, which pertains to alluvial soil plain by the Urumqi River. The soil layer is thick with light salinization. The surface of most areas in the built up region is hardened road and artificial green belt. The soil type of suburban areas is grey desert soil. The vegetation mainly includes low and sparse drought-tolerant plants. The main plants are seriphidium borotalense and nanophyton erinaceum. Salsola, ceratocarpus and other ephemeral plants can also be found. The vegetation cover is about 10%.

The heating pipeline network of the UHN will be laid along the existing civil roads, so no new land acquisition will happen. The pressure-isolated heat exchange

Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã station will take unused land according to the urban planning, where the soil type is grey desert soil with few plants. 3.1.1.6 Animals Most of the works of the UHN will be carried out in the built up area of the city. Minority parts will be constructed in suburban areas. Types of animals in these areas are simple, with few wild animals. Main animals in these areas are companied by human beings. Most of them are resident birds and breeding birds. The dominant species of birds in suburban areas are sparrows, horned larks and larks. Mammals are rare in this region. Only rodents like house mouse (mus musculus) are often seen. There is no rare or endangered species. 3.1.2 Surface Water Quality The pipeline of the UHN is proposed to pass across the Shuimo River. In the investigation of water quality, data and information were collected to evaluate the surface water quality baseline of the Shuimo River. The regular monitoring results of the Enamel Factory Spring section and the Qifang Bridge section provided by the Central Environmental Monitoring Station of Urumqi in August 2009 were cited in this report. Figure 3.1-1 shows the monitoring points.

(1) Monitoring items In light of the environmental situations where the project is located, 22 items for water quality monitoring were selected, including pH, DO, permanganate value, CODcr, BOD5, NH3-N, volatile phenol, oil pollutant, Hg, Pb, As, Cd, Cr(+6), cyanide, fluoride, sulfide, TP, TN, Zn, Se, Anionic surfactant and fecal coliform. (2) Assessment standards Category V in the “Environmental Quality Standard for Surface Water” (GB3838-2002) is based for surface water of the Shuimo River according to its function (agricultural irrigation). The standards are listed in Table 3.1-2.

Table 3.1-2 Standards for Water Quality Assessment Unit mg/L excep unit of pH No. Item Category No. Item Category V V 1 pH 6~9 12 Cd 0.01 2 DO 2 13 Cr(+6) 0.1 3 Permanganate value 15 14 Cyanide 0.2 4 CODcr 40 15 Fluoride 1.5 5 BOD5 10 16 Sulfide 1.0 6 NH3-N 2.0 17 TP 0.4 7 Volatile phenol 0.1 18 TN 2.0 8 Oil pollutant 1.0 19 Zn 2.0 9 Hg 0.001 20 Se 0.02 10 Pb 0.1 21 Anionic surfactant 0.3 11 As 0.1 22 Fecal coliform 40000

(3) Assessment results The monitoring and assessment results of the two sections of the Shuimo River in August 2009 are presented in Table 3.1-3. Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

Table 3.1-3 Monitoring and Assessment Results of Two Sections of the Shuimo River Unit mg/L (except the unit of pH) No. Item Enamel Factory Spring Qifang Bridge Monitoring Monitoring Si,j Si,j result result 1 pH 7.42 0.21 7.71 0.36 2 DO 4.6 0.28 5.1 0.44 3 Permanganate value 0.8 0.05 18.7 1.25 4 CODcr 17 0.42 155 3.88 5 BOD5 0.6 0.06 5.3 0.53 6 NH3-N 0.022 0.01 20.49 10.25 7 Volatile phenol 0.001 0.01 0.004 0.04 8 Oil pollutant 0.005 0.005 0.005 0.005 9 Hg 0.00002 0.02 0.00002 0.02 10 Pb 0.001 0.01 0.001 0.01 11 As 0.001 0.01 0.001 0.01 12 Cd 0.0002 0.02 0.0001 0.01 13 Cr(+6) 0.001 0.01 0.042 0.42 14 Cyanide 0.001 0.005 0.012 0.06 15 Fluoride 0.23 0.15 0.55 0.37 16 Sulfide 0.002 0.002 0.082 0.08 17 TP 0.01 0.025 0.105 0.26 18 TN 1.48 0.74 25 12.5 19 Zn 0.01 0.005 0.01 0.005 20 Se 0.0001 0.005 0.0001 0.005 21 Anionic surfactant 0.04 0.13 0.35 1.17 22 Fecal coliform 3 0.000075 50000 1.25

pH − 7 . 0 S = j pH > 7 . 0 pH , j pH − 7 . 0 j Note: su

The monitoring results show that the water quality at the Enamel Factory Spring is good which is the source of the Shuimo River. At the Qifang Bridge section of the

Shuimo River, the COD, permanganate value, NH 3-N, TN and fecal coliform are all beyond the Category V standards in the “Environmental Quality Standard for Surface

Water” (GB3838-2002). The COD, NH3-N and TN are several times higher than the standards. That is, the pollution at downstream is serious. This is caused by municipal and agricultural pollution sources along the river. 3.1.3 Ambient Air Quality 3.1.3.1 Current Status of Ambient Air Quality in 2009 Figure 3.1-1 presents how the number of days when the ambient air quality meets the standard changes from 2001 to 2009.

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Figure 3.1-1 Number of Days When the Ambient Air Quality Meets the Standard (2001- 2009) It can be seen in Figure 3.1-1 that the number of days when the ambient air quality meets the standard significantly increased from 2001 to 2003 since scattered small boilers were replaced by large-scale heating in Urumqi. The number did not change much from 2003 to 2009, which indicates that the effect of centralized heating on improving the ambient air quality of Urumqi become weak. It is necessary to replace existing centralized heating with CHP in order to further improve the ambient air quality. 3.1.3.2 Current Status of Ambient Air Quality in 2009 (1) General situation The general situation of ambient air quality of Urumqi in 2009 is shown in Table 3.1-4. The comparison between air pollutant concentrations during the heating season and non-heating season is presented in Table 3.1-5.

Table 3.1-4 The General Situation of Ambient Air Quality of Urumqi in 2009 Grade Number of days Proportion () Excellent & good grade 262 71.8 Light pollution (Grade III) 79 21.7 Medium pollution (Grade IV) 14 3.8 Heavy pollution (Grade V) 10 2.7

Table 3.1-5 The Comparison of Pollutant Concentrations during the Heating Season and Non-heating Season Times Times Times SO mg/m PM mg/m NO mg/m3 2 beyond the 10 beyond the X beyond the 3 3 standard standard standard Grade II in national 0.06 - 0.1 - 0.08 - environmental quality standard Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

Grade III in environmental 0.10 - 0.15 - 0.08 - quality standard Year: 2009 0.093 0.55 0.140 0.4 0.068 0 Non-heating 0.026 0 0.079 0 0.052 0 season of 2009 Heating season of 0.159 1.65 0.202 1.02 0.085 0.06 2009

3 In 2009, the annual average concentration of SO2 is 0.093 mg/m which is 0.55 times higher than Grade II in national air quality standard. The annual average 3 concentration of PM10 is 0.14 mg/m which is 0.4 times higher than Grade II standard. 3 The annual average concentration of NO2 is 0.0685 mg/m which is close to Grade II standard. The coal-fired sources contribute more than 90% of SO2 and 60% of PM10 in Urumqi. It shows a typical coal-smoke pollution.

In the heating season in winter, the emission inventory of SO2 accounts for more than 2/3 of annual total. Given the frequency of calm wind and temperature inversion is higher than 90%, the air pollution shows seasonal changes. The pollution appears light in spring and summer and goes serious in autumn and winter. Extreme pollution sometimes happens in winter. In the heating season in 2009, the concentration of SO2 was as high as 0.180 mg/m3, which is two times higher than Grade II in national air quality standard. The monthly concentration of PM10 was 0.199 mg/m3, which is 0.99 times higher than Grade II in national air quality standard. The heaviest pollution happened in January.

(2) Monitoring results of regular monitoring points in 2009 Only the counterpart works like pipeline network and heat exchange stations will be constructed in the UHN, but not the heat source plants and boilers. Thus, there will be no issues of pollutant emission in this project. In this context, data and information were collected in this EIA to analyze the ambient air quality. Regular monitoring data by the Central Environmental Monitoring Station of Urumqi was cited as the information of current status in the project region. This report cites ambient air quality monitoring data of regular monitoring points, including Urumqi Railway Bureau, Monitoring Station and Toll Station from March 21st to 27th, 2009, provided by Urumqi Environmental Monitoring Station, and the monitoring data of six monitoring points, including Government of Shuimogou District, Jianfang Group, Hongqiao Peak balancing Boiler Room, Xuefeng Civil Exploder Company, Xinjiang Center for Disease Control and Prevention (CDC) and Training Center for Civil Servants from December 18th to 24th, 2009, provided by the

Central Monitoring Station of Urumqi. The monitoring items are PM10, SO2 and NO2. Single pollution index is applied to assess the air quality. It was calculated as: Pi = Ci/C0 Where Pi represents single pollution index; Ci represents the monitored concentration of pollutant (mg/m3); and C0 represents the value of assessment standard (GB3095-96).

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Grade II in the “Ambient Air Quality Standard” (GB3095-96) and in its amended lists promulgated by former State Environmental Protection Administration (SEPA) are based for ambient air quality assessment. The assessment standards are shown in Table 3.1-6. Table 3.1-6 Ambient Air Quality Standard (GB3095-96) (Cited) Unit: mg/m3 Concentration limit (GB3095-96) Pollutant Sampling time Grade I Grade II Grade III Annual average 0.02 0.06 0.10 SO2 Daily average 0.05 0.15 0.25 Hourly average 0.15 0.50 0.70 Annual average 0.04 0.10 0.15 PM 10 Daily average 0.05 0.15 0.25 Annual average 0.04 0.08 0.08 N02 Daily average 0.08 0.12 0.12 Hourly average 0.12 0.24 0.24

The statistic results of three regular monitoring points and the ones of six monitoring points, viz. Government of Shuimogou District, Jianfang Group, Hongqiao Peak balancing Boiler Room, Xuefeng Civil Exploder Company, Xinjiang CDC and Training Center for Civil Servants are listed in Table 3.1-7.

Table 3.1-7 Monitoring and Assessment results of Air Quality Sampling point and item Sampling Daily Number Proportion Highest days Concentration Standard of points of days times over range mg/m3 mg/m3 beyond beyond the the standard standard standard PM 7 0.007 0.117 0.15 0 Monitoring 10 1# SO2 7 0.088 0.221 0.15 4 57% 1.47 station NO2 7 0.074 0.016 0.12 0

PM10 7 0.066 0.206 0.15 3 42.8% 1.37 2# Toll Station SO2 7 0.027 0.105 0.15 0 NO2 7 0.077 0.093 0.12 0 PM 7 0.067 0.207 0.15 2 28.6% 1.38 Railway 10 3# SO2 7 0.065 0.128 0.15 0 Bureau NO2 7 0.058 0.088 0.12 0

Governmen PM10 7 0.130 0.490 0.15 6 85.7 2.27 t of 4# SO2 7 0.098 0.125 0.15 0 Shuimogou NO2 7 0.088 0.108 0.12 0 District PM 7 0.151 1.153 0.15 7 100 6.69 Jinfang 10 5# SO2 7 0.099 0.145 0.15 0 Group NO2 7 0.071 0.108 0.12 0 Hongqiao PM10 7 0.178 0.648 0.15 7 100 3.32 6# Boiler SO2 7 0.113 0.174 0.15 2 29.6 0.16 Room NO2 7 0.071 0.112 0.12 0

7# Xuefeng PM10 7 0.116 0.779 0.15 6 85.7 4.19 Civil SO2 7 0.105 0.151 0.15 1 14.2 0.01 Exploder Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

Exploder NO2 7 0.071 0.100 0.12 0 Company PM 7 0.366 0.765 0.15 7 100 4.1 Xinjiang 10 8# SO2 7 0.117 0.146 0.15 0 CDC NO2 7 0.067 0.073 0.12 0

Training PM10 7 0.202 0.887 0.15 7 100 4.91 Center for 9# SO2 7 0.129 0.175 0.15 6 85.7 0.17 Civil NO2 7 0.070 0.095 0.12 Servants 0

The assessment results in Table 3.1-7 show that the concentrations at nine monitoring points all exceeded the standards. Among others, the concentration of

PM10 exceeded the most at every point. The proportion of days when the monitored concentrations was beyond the standard ranges from 28.6% to 100%. The highest concentration of PM10 was 6.69 times higher than the standard. SO2 was the second. The proportion of days when the monitored concentrations was beyond the standard ranges from 14.2% to 85.7%. The highest concentration of SO2 was 0.17 times higher than the standard. The concentrations of NO2 were not beyond the standard. The ambient air quality in the assessment area could not meet the Grade II in the “Ambient

Air Quality Standard” during the monitoring period. The primary pollutant is PM10 and the secondary one is SO2, which indicates a typical coal-smoke pollution. The main reason of the excess is the pollutant emissions from coal in winter. In addition, the topographical and meteorological conditions also cause the bad air quality in the heating season.

3.1.3.3 Conclusions As discussed above, the coal-smoke pollution happens in winter in Urumqi. The monitoring results in the whole city provided by the Central Monitoring Station of Urumqi indicate obvious regional differences of air pollution among areas. The monitored concentrations of pollutants are much higher at downtown (south region, south of Hong Hill) that in the north region of Hong Hill. In terms of period distribution, big differences between the heating season and non-heating season can be detected, particularly for SO2 and PM10. The concentrations of the two items can meet the Grade II standard in non-heating season while they are much higher than the standards in heating season. 3.1.4 Acoustic Environmental Quality Several measures were implemented in Urumqi in 2009 to supervise traffic noise, noise of city life, construction noise and industrial noise. Industrial noise was required controlled before deadline. Sound barriers were set along key road sections so that the disturbance of traffic noise on residents has been relieved. The control and management of noise from restaurants and noise during the university entrance examination were improved. In 2009, the average equivalent sound level of traffic noise was 70.1 dB(A) that is 1.1 dB(A) lower than the last year. The regional average equivalent sound level was 54.9 dB(A) that pertains to “Less Good” Grade.

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The main noise sources in the region that the UHN relates to are traffic noise. In order to assess the acoustic environmental baseline in the project region, the Xinjiang Monitoring Station was commissioned in March 2010 to carry out noise monitoring at the boiler rooms related to the UHN, proposed pressure-isolated heat exchange stations and residential areas along the pipeline network. According to the “Noise Zoning of Urumqi On the Basis of ‘Standard of Environmental Noise of Urban Area’” promulgated by the UMEPB, Category 4a in the “Environmental quality standards for noise” (GB3096-2008) is based for sensitive points like residential areas, schools and hospitals along trunk roads. Most of the heating pipeline network of the UHN will be laid along trunk roads, so Category 4a in the “Environmental quality standards for noise” (GB3096-2008) is based for these areas. Category 2 standards are based for rural areas where the pipelines pass. The monitoring methods were applied as required in the “Environmental quality standards for noise” (GB3096-2008). The monitoring instrument was noise analyzer AWA6218A-1 and calibration instrument was sound level calibrator ND-9. (1) Current status of acoustic environmental quality In light of the project features and potential impacts of the UHN, three monitoring pointes were selected, including the proposed pressure-isolated heat exchange station, Weihuliang Community and No. 53 Middle School. The monitoring results are shown in Table 3.1-8 and Table 3.1-9.

Table 3.1-8 Monitoring Results of Acoustic Environmental Quality of the UHN (1) Unit: dB (A) Standard March 11th March 12th (Leq) Over the Monitoring point Direction Note Dayti Nigh Dayti Nigh Dayti Nigh standard me ttime me ttime me ttime East 38.8 35.9 39.1 34.5 - Pressure-isolated South 35.5 33.5 35.1 32.9 - heat exchange West 60 50 38.7 33 37.3 33.4 - station (new) By North 42.3 39.1 42.5 35.8 - road

Table 3.1-9 Monitoring Results of Acoustic Environmental Quality of the UHN (2) Unit: dB (A) Distance Standard March 11th March 12th to the (Leq) Monitoring Over the No. Direction road point standard redline Dayt Nigh Dayt Nigh Dayt Nigh (m) ime ttime ime ttime ime ttime Weihuliang 1 North 15 70 55 60.1 51.5 62.5 52.1 - Community No. 53 2 Middle West 20 60.7 54.1 63.4 53.6 - School

As it is shown in Table 3.1-8 and Table 3.1-9, the current sound levels at the proposed pressure-isolated heat exchange station and the sensitive points along the Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã pipeline network met the “Environmental quality standards for noise” (GB3096- 2008). The main noise sources along the pipelines are traffic noise.

3.2 Societal and Economic Status

Urumqi is the capital of Xinjiang Uygur Autonomous Region, the center of the region’s politics, economy and culture, as well as an important international transport hub in western China and portal of opening. There are seven districts and one county (Tianshan District, Saybagh District, Xinshi District, Toutunhe District, Shuimogou District, Nanshan Mining District, Midong District and Urumqi County) governed under Urumqi, including 21 countries and towns as well as 48 sub-district offices. The total area of built up region is 166.8 km2. 49 brother ethnic groups like Uygur, Han, Hui, Kazak and Mongolian live together in the city. The total population is 2.082 million (data of the fifth national census), 24.6% of which are ethnic minorities. About 83.5% of people live in urban areas. 3.2.1 Regional Economy 3.2.1.1 Urumqi As the capital and central city of the autonomous region, Urumqi leads the economic development in the autonomous region with large total economic value and strong development momentum. The economic indicators, such as GDP, industrial added value, retail sales and revenue all comes the first among other cities in Xinjiang. The Urumqi’s economic development becomes more prominent in the autonomous region. The GDP of Urumqi was 109.5 billion in 2009, which accounts for more than 25% of the total amount of Xinjiang. Calculated as constant price, the increase rate of GDP reached 15% in 2009. The GDP in 2009 was 9.5% more than GDP of the last year. The industrial structure has been optimized. The proportions of the three industries were 1.5:41.3:57.2. The Urumqi’s economic contributions to the economy of Xinjiang are shown in Table 3.2-1. Main economic indicators of Urumqi are listed in Table 3.2-2.

Table 3.2-1 Contribution of Urumqi’s Economy to the Economy of Xinjiang in 2009 Annual GDP Industrial added Retail sales Land area Population Indicator (RMB billion value (RMB (RMB billion (km2) (person) Yuan) billion Yuan) Yuan) Xinjiang 1,660,400 21,586,300 427.357 157.988 117.753 Urumqi 14,200 2,411,900 109.5 38.6 47.3 Proportion 0.86% 11.17% 25.62% 24.43% 40.17%

Table 3.2-2 Economic Indicators of Urumqi Proportion Proportion of Proportion GDP per GDP of Primary Secondary of Tertiary capita Population Year (RMB billion industry in industry in industry in RMB person Yuan) GDP GDP GDP Yuan/person (%) (%) (%) 2000 1,643,800 28.985 2.4 35.9 61.7 14622 2001 1,690,300 32.794 2.3 35.5 62.3 15732 2002 1,757,200 36.706 2.4 33.3 64.3 16990 2003 1,815,300 42.6 2.4 34.8 62.8 19085 2004 1,859,600 50.661 2.4 38.1 59.6 21990 2005 1,941,500 59.354 2.1 37.9 59.9 24771 2006 2,018,400 69.243 2.1 38.5 59.5 27707 Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

2007 2,313,000 82.028 2.0 38.6 59.4 31140 2008 2,360,500 101.461 1.5 41.6 56.9 37133 2009 2,411,900 108.775 1.5 42.9 55.5 45099.3 r I a n t c ( e 2001-2005 3.4% 11.7% 10.2% 10.7% 12.6% 7.5% r %

e a ) 2006-2009 6.7% 14.3% 8.2% 14.2% 14.1% 14.1% s

2001-2009 5.4% 14.5% 10.7% 14.1% 15.5% 11.7%

3.2.1.2 Shuimogou District Shuimogou District is located at the northeast of Urumqi. The Urumqi County lies to the east. Shuimogou District is bordered by Hetan East Road with Saybagh District and Xinshi District in the west. It is connected with Tianshan District by Xiaohong Bridge and extends to Jiangou and Kaziwan in the north. Shuimogou District lies in the east of the Urumqi River where the topographic feature pertains to hilly region. The south area is higher than the north. The area of this district is 121.7 km2. In total, eight sub-district offices, 64 communities and six villages are governed under Shuimogou District. The population reached 0.244 million at the end of 2008, including ethnic groups of Han, Uygur, Hui, Kazak and Xibe, etc. In 2009, the GDP of Shuimogou District was RMB 8.43 billion Yuan. The add values of the primary, secondary and tertiary industries were RMB 0.03, 2 and 6.4 billion Yuan respectively. The gross industrial output value was RMB 1 billion Yuan in this district. This district enjoys abundant tourism resources, e.g. Hongshan Park and Shuimogou Scenic Spot that are national Grade AAAA tourist spots. The tourists that visited the Shuimogou District were 1 million persons in 2009. The tourism revenue exceeded 100 million. The number of employees was more than 9000. The tourism industry has played an important role in this district.

3.2.2 Energy Structure Coal is the main energy source in Urumqi, accounting for about 90% of total energy use. The consumption of coal in the heating season is more than 4 million ton, accounting for more than 44% of total energy use in winter. The coal consumption per capita is about 3.96 ton, which is ranked first around the cities in China and is 4 times of the national average level. The percentage of coal to final energy consumption decreased 10%, from 55.5% in 1998 to 10.1% in 2004, while the percentage of natural gas increased from 6.6% in 1998 to 10.1% in 2004. Although the proportion of coal went down, the total amount of coal use has risen with GDP year by year. The energy consumption and energy mix of Urumqi are presented in Table 3.2-3. Table 3.2-3 Energy Consumption and Energy Structure of Urumqi Indicator Unit Consumption Proportion (%) Coal consumption Million ton 14.72 73.2 Oil consumption Million ton 2.25 22.4 Natural gas consumption Billion m3 0.396 3.7 Ton standard Renewable energy consumption 96,200 0.7 coal

The proportion of natural gas in primary energy of Urumqi use was only 3.7% in 2009. According to the “12th Fiver-year Plan for Energy Consumption Structure of

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Urumqi” and “Urban Heating Structure Adjustment Plan”, the natural gas heating will account for 33.33% of total heating.

3.3 Current Air Pollution Control and Management

3.3.1 Air Pollution and Its Causes in Urumqi In Urumqi, the area of thermal- power cogeneration and clean energy heating currently accounts only for 20% of the total area. The rest are supplied through centralized heating or scattered coal-fired heating. Table 3.3-1 shows the current status of heating in urban areas of Urumqi.

Table 3.3-1 Current Status of Heating in Urban Areas of Urumqi in 2008 (million m2) Centralized Scattered coal- Small civil CHP coal-fired Clean energy Total fired boiler coal stove heating 13. 55.94 8.46 13.83 6.50 97.73

As statistics shows, there are 178 coal-fired boilers in 52 centralized heating boiler rooms, 790 coal-fired boilers in 369 scattered heating boiler rooms and 9297 scattered small civil coal stoves. There are only 23% of centralized coal-fired boiler rooms, from which the dust emission can meet the air pollutant emission standard. The proportion for SO2 emission is 12%. No desulfurization and dust removal facilities are installed on scattered small boilers. The low efficiency, high energy consumption of boilers and low efficiency of desulfurization facilities causes that the days when air quality can meet the standard accounts for less than 50%. Accordingly, annual average air quality can not meet the standard. Thus, the vital tasks in Urumqi are to manage scattered coal-fired boilers and adjust energy structure. In this context, it becomes an emergent task to develop centralized heating through CHP, so that the efficiency of energy use could be improved; energy saving and pollutant emission reducing could be promoted; and the environmental quality could be improved. In light of current situations of energy supply and heating in Urumqi, the government proposes to improve centralized heating through CHP, to develop clean energy heating like gas heating and to promote energy saving strategy of heating. The proportion of CHP and clean energy use is proposed to reach 90% until 2015. The main reasons of heavy air pollution in Urumqi except the natural geographic conditions are discussed as below.

(1) The primary man-made causes of air pollution in Urumqi are improper energy structure and high energy consumption The primary causes of air pollution in winter in Urumqi are the coal-based energy structure and low energy efficiency and waste. Currently, coal accounts for more than 70% of total primary energy consumption in Urumqi. The coal consumption per capita is ranked first among cities in China and is 4 times of national average level. In 2008, total coal consumption was 14.72 million ton, 2/3 of which was used in winter. The energy sources of main pollution sources including power industry, construction materials industry, metallurgical industry and heating industry are coal-based. The high pollutant emissions are due to high energy consumption. The pollutant emission inventory is over the environmental capacity. The coal

Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã consumption by sector is listed in Table 3.3-2. The air pollutant emissions are shown by sector in Table 3.3-3.

Table 3.3-2 Coal Consumption by Sector in Urumqi (2007) Average daily coal Proportion consumption in Energy Unit Consumption Note (%) heating season (ton/day) Coal used in Calculated as ton/year 5,793,700 39 15,870 power industry 365 days construction ton/year Calculated as material, chemical 5,502,800 38 16,680 330 days and metallurgical Coal used for ton/year Calculated as 2,795,200 19 16,940 heating 165 days ton/year Calculated as Civil coal use 151,800 1 420 365 days Coal used in other ton/year Calculated as 476,500 3 1,440 sectors 330 days

Table 3.3-3 Air Pollutant Emissions by Sector in Urumqi (2007) SO SO NO NO Dust Dust No. Category 2 2 x x (ton) (%) (ton) (%) (ton) (%) 1 Power sector 42,000 28.55 6,000 7.03 66,000 (15,000 ton 2 Industrial sources generated in 44.87 77,500 54.65 26,000 30.48 producing process) Centralized 3 16,000 10.88 13,000 15.24 heating sector 4 Life source 11,000 7.48 17,000 19.93 5 Automobile 27,300 19.25 Total 135,000 91.8 104,800 73.9 62,000 72.6

Table 3.2-2 and Table 3.2-3 explain the improper energy structure of Urumqi. The natural gas and renewable energy account for less than 5% of total primary energy consumption. The big users of coal are power sector, construction material industry, chmical industry, metallurgical industry and heating sector. The coal consumption in these sectors accounts for 96% of the total use in the city. The pollution emissions from these sectors also accounts for most of the emission

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inventory of the city. SO2 emission was 1.35 million ton, account for 91.8% of the inventory of Urumqi. NOx emission was account for 73.9% and dust emission accounts for 72.6%. SO2 emission from life sources accounts for 8.1% and dust from life sources accounts for 27.4%.

(2) The air pollution is exacerbated due to the dominant coal-fired heating There are 178 large coal-fired boilers in 47 boiler rooms distributed in the center of Urumqi city. There is one centralized heat supply station in per area of 2.7 km2 in average. In addition, thousands of civil coal-fired boilers or stoves exist in peri-urban areas. The scattered distribution and fragmented heating mode make the air pollution in heating season in Urumqi is exacerbated. According to statistics, unadvanced desulfurization facilities are used in most centralized heating boilers. Even no desulfurization facility has been installed in some boilers. Thus, the pollutant emissions can not meet the standards. The concentration of dust emission of only 23% of the boilers can meet the local standard (100mg/m3 for Period I) in the “Emission Standard of Air Pollutants for Coal-fired Boiler”

(DB65/2154-2010). The concentration of SO2 emission of only 12% of the boilers can meet the local standard (500mg/m3 for Period I). Since the thermal efficiency and chimney of scattered boilers are low without desulfurization facilities, it is more obvious that the dust and SO2 emissions are beyond the standards. All of these aggravate the air pollution in winter in Urumqi. At present, the area of CHP accounts for 13.68% of total heating area in Urumqi. The area of clean energy heating like natural gas heating accounts for 6.83%. The area of centralized heating accounts for 72%. The rest are scattered heating with small boilers. The heating structure is improper, because on the one hand, the CHP has developed slowly and can not satisfy the rapid increase of new heating areas, which have to depend on expansion of centralized heating stations and scattered boilers. On the other hand, it is because that part of CHP and scattered boilers within the centralized heating area have not been integrated in the centralized heating network for some reasons. The Southern District Heating Network Project and Weihuliang Power Plant CHP Project were carried out in 2007. About 150 scattered boilers and 2200 small coal-fired boilers have been replaced by CHP. The annual coal consumption has been reduced 90,000 ton. The annual reductions of SO2, dust and cinder are 1420 ton, 4080 ton and 18,000 ton respectively. (3) Low direct emission from non-point life sources like scattered boilers and small coal-fired boilers cause severe pollution. Because there are not proper environmental protection devices in scattered boilers and small coal-fired boilers, the desulfurization efficiency is low and emissions are much over the standards. Their impacts on air pollution in winter in Urumqi are significant and should not be ignored. The results of “The Research of Causes of Air Pollution in Urumqi” conducted by Tsinghua University indicates that in terms of contribution to pollutant concentrations, the non-point life sources and heating boilers less than 20 ton have major effects on concentrations of main

Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã pollutants. Low direct emissions from non-point life sources like scattered boilers and small coal-fired boilers contribute about 40% of the concentrations of SO2, PM10 and NOx in heating season. Thus, it is crucial to manage the low non-point sources. In the coming period, an important task of air quality improvement in Urumqi is to integrate scattered small coal-fired boilers into centralized heating network or transform them to gas boilers. (4) Industrial production lies in low level of the industrial chain. The economic growth is extensive. The situation that air pollutant emissions from industrial sources are beyond the standards is still serious. Emission inventory caused by coal firing is significantly high. In 2008, the emission inventories of SO2 and dust were 140,000 ton and 63,000 ton respectively. The emissions from industrial sources dominated the inventory, which accounts for 91.9% of SO2 emission and 71% of dust emission. The emission by sector focused on power and thermal production and supply sector, petroleum processing and coking industry and ferrous metal smelting and rolling processing industry. The accumulated equivalent emission load of these sectors reached 85% in 2008. The key pollution sources in Urumqi contribute much to air pollution. The air pollutant emissions in Urumqi concentrate on nine factories, the equivalent emission load of which accounts for 80-90% of the total equivalent emission load of all key industrial pollution sources. 40% of SO2 emission inventory comes from the power sector. The industries that promote rapid economic growth in Urumqi are featured as high resource input and consumption and high pollutant emission, including petrochemical, steel, power, coal and building materials industries, etc. Currently, unadvanced technologies are applied in the production of these industries. The production lies in low level of the industrial chain with low added-value. That is why the resource consumption and pollutant emissions per production are much higher than international and domestic advanced levels. In 2007, the energy consumption per GDP was 2.54 ton standard coal per 10,000 Yuan RMB in Urumqi, which is 2.2 times of the national average level. The SO2 and dust emission inventories per industrial added-value were 0.054 ton per 10,000 Yuan RMB and 0.025 ton per 10,000 Yuan RMB respectively, which are 2 times of the national average level. High energy consumption leads to high emission. High emission leads to serious pollution. According to the general survey of pollution sources, more than 80% of dust and SO2 emissions come from industrial factories, which focus on power production plant, large-scale industrial factories and centralized heating factories. SO2 emissions from the top 20 factories (see Table 3.3-3) accounts for 74% of the total emission inventory. Among others, SO2 emissions from Huandian Xinjiang Hongyanchi Power Corporation, Guodian Xinjiang Hongyanchi Power Corporation, Huadian Xinjiang Weihuliang Power Corporation account for 40%. To date, only Huadian Xinjiang Weihuliang Power Corporation and Hongyanchi Power Corporation have installed desulfurization facilities. Guodian Honyanchi Power Co. Ltd. initiated large power generators and reduced small generators. However, there are still 4 small generators running. SO2 emissions from China National Petroleum Corporation Urumqi Branch, Baosteel Group Bayi Iron & Steel Corporation, Shenhua

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Coal Gangue Power Plant, Tianshan Cement Corporation and XinJiang XinHua Chemical Fertilizers Ltd. accounts for 23%. The contribution of dust emissions from these factories is also high. The pollution prevention and control of many centralized heating corporations like Guanghui Thermal Corporation is weak. 40% of emissions from these factories exceed the standards. SO2 emissions accounts for about 20% of total emission inventory in Urumqi. (5) The contribution of vehicle emissions to air pollution increases year by year. Given the rapid urban development and increase of vehicle population, pollutant like NOx emissions keep increasing. The pollution condition for “photochemical smog” exists in some places. The coal-smoke pollution has not yet been managed. If it is added with vehicle emissions, compound pollution may happen. This would have major impacts on ambient air quality in Urumqi. To date, the vehicle population in Urumqi is 280,000 vehicles, which refers to registered ones. About 850,000 vehicles increased in three years from 2006 to 2008, while 70,000 new vehicles were registered in 2009. There are currently more than 100 vehicles registered every day. The annual increase rate of vehicle population is higher than 15%. Table 3.3-4 shows the changes of vehicles in Urumqi from 1997 to 2009.

Table 3.3-4 Changes of Vehicles from 19972009 Year Vehicle population (vehicle) Annual increase rate (%) 1997 43865 2000 66588 51.80 2004 126145 89.44 2005 138488 9.78 2006 152411 10.05 2007 177148 16.23 2008 210000 18.54 2009 280000 33.33

The vehicle emissions in built up areas contribute about 40.1% of NOx and 94.1% of CO in total air pollutants. In recent years, the concentration of NO2 in ambient air keeps rising and exceeds the standard in heating seasons. The annual average concentration of NO2 is close to national standard, which should be paid attention to. 3.3.2 Current Air Pollution Control and Management According to the First General National Survey of Pollution Sources, the emission inventories of SO2 and dust (including industrial dust) were 140,000 ton and 63,000 ton respectively in 2008. As calculated, the environmental capacity of SO2 and dust of Urumqi is about 67,400 ton per year and 63,000 ton per year respectively. The emission inventories are far over the environmental capacity and have aggravated the air pollution in Urumqi. In order to control air pollution in winter, a “Leading Committee of Urumqi for Air Pollution Control in Winter” was established. The “Leading Committee” is responsible for annual examination of air pollution prevention and control and task

Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã decomposition at each period. They are also responsible for supervising and examining if the air pollution control objectives are reached in each period. In order to control air pollution caused by coal firing in winter, the implementation of the “Emission Standard of Air Pollutants for Coal-fired Boiler” (DB65/2154-2010) has started since 2010. The emission concentrations of dust and

SO2 required in this standard is lower than the requirements in the “Emission Standard of Air Pollutants for Boilers” (GB13271-2001). Since the “Blue Sky Project” was initiated in 1998, the air quality of Urumqi has significantly improved from traditional heating through scattered coal-fired boilers to centralized heating through large coal-fired boilers, and then to current heating through CHP. There were 262 days when the air quality meets Grade II standard and better than Grade II in 2009, while there were only 149 days in 1998. However, the air pollution in winter is still affected by the energy structure and topographic features. The days when the air quality can meet the standards account for less than 50% in heating seasons in winter. This has become an obstacle to socio-economic development of Urumqi. The energy consumption structure and mode have changed a lot through a series of key projects and environmental management measures. The use of clean energy needs to be further promoted in the future. The scattered coal-fired boilers in urban areas shall be integrated into the centralized heating network. Large-scale CHP shall be implemented. Air pollution control of key pollution sources shall be strengthened to improve the environmental achievements. Furthermore, industrial distribution and structure needs to be further optimized to control air pollutant emissions inventory. It is proposed to control SO2 emission inventory less than 67,000 ton per year and dust emission inventory less than 40,000 ton per year, in order to achieve air quality objectives.

3.4 Respiratory Disease Status

As reported by the World Health Organization in 1998, Urumqi was ranked the fourth in Global Top 10 polluted cities. In 2004, Urumqi was the fourth city with most serious air pollution among 47 key cities in China. There were 25 days when Grade V air pollution happened in Urumqi in the winter of 2006. It was 10 days in 2009. Seasonal air pollution is obvious in Urumqi, which focuses on heating season in winter. The severe air pollution has affected residents’ health and living level. Air pollution does much harm to human health. The common harm is respiratory diseases and physiological dysfunction. In addition, people often get sick because mucosal tissues like eyes and noses are irritated. The harm of air pollution to human health is listed in Table 3.4-1.

Table 3.4-1 Harm of Air pollution to Human Health Pollutant Harm to human health Causing respiratory diseases, exacerbating cardiovascular disease, and SO 2 reducing lung resistance Reducing lung function and causing airway inflammation, chest O 3 tightness, cough and nausea NOX Irritating the lung and reducing its resistance to infection Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

Affecting breathing and causing lung tissue damage, cancer, and Particles premature CO Weakening the ability of blood to carry oxygen

According to epidemiological research, air pollution closely relates to the number of outpatients of respiratory disease and cardiovascular disease as well as the lung cancer mortality. The research indicates the direct relation among the incidence of respiratory disease, air pollution and meteorological conditions. The incidence of respiratory disease increases when serious air pollution happens. Referencing the research conducted by Wang Yan etc. (The Effect of Air Pollution in Urumqi on the Respiratory System Diseases, Journal Of Shenyang Agricultural University(Social Sciences Edition), 2007-10, 9(5), 783-785), the respiratory outpatients of some hospital in Urumqi in years are cited in Table 3.4-2.

Table 3.4-2 Respiratory Outpatients of Some Hospital in Urumqi (2002-2005) Year Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total 2002 1538 932 899 1272 1219 1290 1442 1571 1747 1494 1535 1809 16748 2003 2289 1446 1957 2533 1691 1357 1353 1379 1531 1577 2553 2111 21777 2004 2056 1265 1751 1709 1638 1620 1500 1861 1571 1694 2255 2370 21290 2005 2434 1860 1587 2191 2257 1912 1730 2299 2184 1911 2537 2426 25328 Monthly 2079 1476 1549 1926 1701 1545 1506 1778 1758 1669 2220 2179 mean As analyzed in the above table, the number of respiratory outpatients shows the following characteristics: (1) Respiratory disease happens every month but varies significantly among seasons. The number of respiratory outpatients reached the peak in November, December and January. Except for factors like weather change, pressure increase and sudden drop of temperature, air pollution in heating season in winter is the main cause of the increased incidences of respiratory disease in Urumqi. (2) Due to urban expansion and increase of urban population, the energy consumption is more intense. Consequently, the intensity of air pollution emission increases, which leads to the significant increase of respiratory patients. (3) Respiratory outpatients decrease in spring and summer with good air quality.

3.5 Key Environmentally Sensitive and Social Protection Areas

3.5.1 Current Status of Cultural Heritages In the field investigation, the EIA team identified one mosque in the project area, which is Qidaowan Mosque. It lies in the south of Henan Road. This mosque is located near the crossing of Qidaowan Road and Henan East Road, which is in the L1 pipeline network of the UHN. This mosque is general religious site but not cultural heritage. There are usually 160-180 visitors, 20-30 worshipers, and more than 100 Friday Prayers. When celebrating Eid al-Fitr and Id al-Adha, more than 300 people visit the mosque. Local custom needs to be respected when the construction is carried out in this section. The workers need to understand ethnic customs and taboos in order to avoid disturbances on ethnic minorities’ life and culture.

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3.5.2 Ecologically Sensitive Areas The ecologically sensitive areas identified in the UHN include the green belts along both sides of Qidaowan Road, Suzhou Road, Nanhu Road and Liudaowan Road. The width of green belt is 2-3 m. The pipeline trench is 5-10 m away from the green belt. 3.5.3 Noise Sensitive Points Eight noise sensitive points along the UHN were identified after the field investigation, including seven residential areas and one hospital. The sensitive points are listed in Table 3.5-1.

Table 3.5-1 Noise sensitive Points Distance to Road the No. Name Situation Type section pipeline (m)

Wenquan Xuelianshan Vist 50m in the About 2000 1 East Residential area Community north households Road

No.7 Textile Mill Wenquan 20m in the About 300 Residential area 2 Community Road south households

Tianninghuayuan Liudaowa 30m in the About 1000 Residential area 3 Community n Road east households

Nanhu 40m in the 4 Wujing Hospotal Hospital Road west

Wangjialiang Nanhu 30m in the About 500 Residential area 5 Community Road west households

Nanhu 30m in the About 650 Residential area 6 Xianghe Community Road west households

Hongyiyuan Nanhu 30m in the About 1000 Residential area 7 Community Road west households

Nanhu 35m in the About 1000 Residential area 8 Friendship Garden Road west households

3.5.4 Water Environmentally Sensitive Points The water body that the UHN relates to is Shuimo River. The water environmentally sensitive points are listed in Table 3.5-2.

Table 3.5-2 Water Environmentally Sensitive Points Water Times of Construction Note body passing Excavation and laying Shuimo Trunk pipeline of L1 network of the 1 of DN1200 River UHN UHN Excavation and laying Shuimo No. 12 branch pipeline of L2 network of 1 of DN300 River the UHN

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4. Environmental Impact Assessment

4.1 Impact Assessment during the Construction Phase

4.1.1 Ecological Impact Assessment during the Construction Phase (1) Impact of new land acquisition on ecological environment The pipeline of the UHN will be laid along existing civil roads, so it will not lead to new land acquisition. Area of required land acquisition will be 3500 m2, which is unused land in light of urban plan. Temporary land acquisition is needed for pipeline laying. The width of the works will be about 10m. Temporary land acquisition of construction is about 4238 m2. The impacts on vegetation induced by the temporary land acquisition happen in the year of construction. The vegetation can be recovered after the construction. (2) Impacts on vegetation and woodland The works of the UHN pertains to linear construction. Its impacts on vegetation are mainly due to pipeline works. The main impacts include tree transplanting and lawn removal. The natural vegetation is sparse in the project region. Artificial vegetation lies in green belts at both sides of roads and woodland affiliated to organizations along the project. Common trees include white ash tree, ulmaceae, ulmus densa, cloves, torch tree and c.ovata, etc. Some of the trees along the project will be transplanted. During the process, the vegetation cover ratio will decrease in a period. However, the green belt will be recovered after the construction is completed. Construction dust will affect the plant growth, but the works is limited in this project. Thus, the impact of dust on vegetation during the earthwork excavation is minor and will become weak after the construction is completed. Watering during the construction phase can minimize the impacts of dust in order to protect the plants. In addition, solid waste like residual soil from trench excavation and domestic waste will also have impact on the plants. At the construction sites, the residual soil will inevitably fall on the plants and impede respiration and photosynthesis in leaves. Additional impacts on the vegetation include damages to the root and skin of remained trees due to incautious human or machinery working. However, such impacts can be controlled. (3) Impacts on wildlife Among original animals in the project region, the density of rodents is relatively high. Small rodents are common, e.g. house mouse (mus musculus) and cricetulus. Main birds include sparrows, barn swallows and larks. The construction may destroy their habitats and affect some individuals. However, the impacts on their communities are not major because of the large population and strong ability to adapt to changes of these two kinds of animals. 4.1.2 Acoustic Environment Assessment During the Construction Phase (1) Noise sources The main noise sources of the UHN during the construction include construction machinery and transport vehicles. Different machinery will be applied in different Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã stages. In the UHN, excavator will be used for trench excavation; vehicles will transport pipelines during the pipeline laying; welding machines and generators will be used for pipeline welding; crane will be utilized for pipeline laying and bulldozer will be used for backfill. All of these works will be carried out in daytime. The machines will be alternately applied and their positions will change as the construction goes on. In this EIA, references about equipment selected in similar constructions were analyzed. In light of the analogical analysis and field investigation, machines as noise sources that cause noise higher than 85 dB(A) were identified, including excavator, crane, welding machine, bulldozer, concrete mixer, cutting machine and transport vehicles. They are listed in Table 4.2-1.

Table 4.1-1 Noise Intensity of main construction machines Unit: dB A No. Noise source Noise intensity No. Noise source Noise intensity 1 Excavator 92 5 Concrete mixer 95 Concrete dump 2 Crane 88 6 90 truck 3 Welding machine 85 7 Cutting machine 95 4 Bulldozer 90

(2) Noise prediction model When the sound source is much smaller than the prediction distance, the sound source can be seen as point source. The noise of the sound source attenuates as the distance increases. It is calculated as the following formula: r L L 20lg 2 2 1 r 1 Where r1 and r2 are distances to the sound source (m); L1 and L2 represent the noise levels at the points, the distances of which to the sound source are r1 and r2. (3) Results of noise prediction There are usually several different machines working at the same time in the sites. Their sound levels will be added. The added-value depends on the type, quantity and distribution of noise sources. Table 4.2-2 shows how the construction noise attenuates as the distance increases. Table 4.1-2 The Attenuation of Construction Noise Unit: dB A Distance (m) 10 20 40 80 100 200 400 800 1000 Excavator 80 74 68 62 60 54 48 42 40 Crane 76 70 64 58 56 50 44 38 36 Welding machine 73 67 61 55 53 47 41 35 33 Bulldozer 78 72 66 60 58 52 46 40 38 Concrete mixer 83 77 71 65 63 57 51 45 43 Concrete dump truck 78 72 66 60 58 52 46 40 38 Cutting machine 83 77 71 65 63 57 51 45 43

(4) Noise impacts during the construction phase The excavator will be used for a long period during the pipeline construction of the UHN. The noise intensity of such works is high and lasts long. Other machines, like concrete vibrating rod, concrete mixer, concrete dump truck, cutting machine and bulldozer can be operated intermittently, the noise of which lasts short. Thus, noise of excavators reflects the noise impacts of pipeline works. Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

This EIA considers the excavators as representative noise sources during the Construction phase. As calculated, the noise level of excavators along the pipeline attenuates as the distance from both sides of the pipeline increases. The noise level ls lower than 54dB (A) at the point 200m away from the sound source. According to the field investigation, many residential communities are located less than 200m away from the pipeline of the UHN. The noise sensitive points are listed in Table 3.5-1. The nearest community is about 10m away. It is confirmed that the acoustic environment of these points will be affected by the construction noise. The increases of noise level will be different at different points. It will be over the standard at the residential areas that are close to the pipelines. However, the construction noise is temporary and the noise sources are scattered. In addition, the construction is usually carried out in daytime. Acoustic environment will not be influenced at nights. Therefore, the impacts of construction noise on surrounding residents are not major. 4.1.3 Air Pollution Impact Assessment during the Construction Phase The air pollution sources of the UHN include construction dust and construction machinery exhaust. The impacts of construction dust are relatively significant.

4.1.3.1 Dust impacts during the construction phase The construction dust mainly comes from earthwork excavation, stacking, backfill and transportation. The dust generation and its impacts depend on the season, construction management and meteorological factors like wind force, etc. The dust impacts get severe if it is dry and windy. As analogized, under normal meteorological conditions with while mean wind speed of 2.6m/s, the features of construction dust on site are: the TSP concentration at the construction site is 1.5-2.3 times of that at the control point upwind. The TSP concentration at the point 150m downwind from the dust point in the construction site can reach about 0.49 mg/m3, which is 1.6 times of the air quality standard. Excavators and transport vehicles are most used during the pipeline construction. The dust due to earthwork excavation and the secondary dust due to transportation along the line will influence the air quality. The dust caused by backfill could also have impacts at the site and increase the TSP concentration. Table 4.1-3 presents the impacts and scope of influence of dust of pipeline construction while the wind speed is equal to or higher than 3.5m/s and the relative humidity is equal to or lower than 60%. Table 4.1-3 Dust Impact and its Scope of Pipeline Construction Distance to m 5 20 30 50 100-150 the sites Dust mg/m3 10.14 2.89 1.15 0.86 0.61 concentration

According to relevant research, dust generated by vehicles accounts for 60% total dust, the dust inventory and the pollution are closely related to mode of transport, road conditions and meteorological conditions, etc. The areas 150-300m away may be affected, in different situations. If watering the road 4-5 times per day during the construction phase, 70% of the dust can be reduced. The radius of area affected by TSP pollution can be reduced to 20-50m. The most used vehicles in this project will be heavy ones transporting pipelines, excavators and cranes, so construction site management should be implemented well to avoid dust pollution. Watering at sites shall be considered. The watering frequency and volume could be determined

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4.1.3.2 Impacts of vehicle exhaust emissions Construction machinery exhaust emissions refer to exhaust from fuel machinery and transport vehicles. Main pollutants include CO, NOx and hydrocarbons (CnHm), etc. The exhaust emissions are temporally and spatially focused. The concentration is high in a local area. Construction machinery like excavators and heavy trucks, etc. would enter in the construction site. As the Ministry of Transport measured and calculated, the CO concentration of heavy truck is 37.23 g/km· vehicle; the NOx concentration is g/km· vehicle; and the CnHm concentration is 16.83 g/km· vehicle. The machinery exhaust is unorganized non-point source, which would have negative impacts on the ambient air in the project area. However, such impacts that last not long will disappear while the construction is completed. 4.1.4 Water Environment Impact Assessment during the Construction Phase (1) Impacts of Pipeline passing the water body Jacked and overhead pipeline of the UHN will be used when it goes through the Heping Channel. The construction will not have impacts on the water environment of Heping Channel. (2) Domestic wastewater Most of the works of this project will be carried out in urban areas. No temporary living facilities will be set. Local houses would be rented. The domestic wastewater is discharged into the municipal drainage. (3) Construction and pressure test wastewater During the construction, construction wastewater includes muddy water at the construction site, water at site, possible leak at nodes where new pipeline connects with old ones and wastewater generated from pressure test. The wastewater mainly contains suspended solid and slurries. The physical and chemical properties of the wastewater are similar with original water. It pertains to clean wastewater and is not harmful to soil environment. There will be about 10000 m3 wastewater generated from pressure test every day, which can be used for greening. The volume of rest wastewater is low as long as existing heating pipeline would not be damaged and water would not leak. The impact of wastewater will have minor impacts on the environment as it naturally evaporates and infiltrates. No vehicle wash place will be set in the UHN. Construction machinery including vehicles will be cleaned in local car wash. 4.1.5 Assessment of Solid Waste during the Construction Phase Solid wastes generated during the construction phase of the UHN include residual soil, construction waste and domestic waste. The residual soil is generated from trench excavation and site leveling of pressure-isolated heat exchange station and substations, etc. The residual soil is non- toxic solid waste. The leakage of soil during the transportation and disposal would have impacts on the environment. It would affect city’s visual appearance if the soil storage is not orderly due to vague disposal location.

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The construction wastes mainly include heat insulation materials and packaging materials of equipment and disable gray sand, concrete, broken bricks and rubble, building materials and processing waste at pressure-isolated heat exchange station and substations. If the waste could not be disposed in time, it would not only have visual influence, but also generate dust in windy and dry days. Domestic waste comes from staff living within the construction site. Un-orderly disposal of domestic waste would lead to breeding of mosquitoes and flies, which may make surrounding residents affected by mosquitoes, flies, odor and diseases. According to the feasibility study of this project, earthwork balance would be implemented well during the construction. The disposal of excavated earthwork will be: being backfilled for heating pipeline and site leveling; being transported to landfills nearby; being used in greening. The construction waste shall be piled at designated sites in light of the requirements of “Administration Measures of Urumqi on Urban Construction Waste” and transported to the operating Urumqi Construction Waste Landfill. The domestic waste shall be piled at designated sites and transported to the Urumqi Landfill every day. Therefore, the solid waste during the construction phase will not have impact on the environment.

4.1.6 Social Impact Assessment during the Construction Phase

According to the field investigation, the UHN does not relate to resettlement issues. The project region is ethnic minority region. A special team has been commissioned to prepare the ethnic minority program. Thus, major social impacts during the construction phase refer to negative ones on people’s travel and traffic during the pipeline construction. 4.1.6.1 Impacts on Residents’ Travel Less residential and business areas are located in the area 100m away from both sides of the pipeline of the UHN than that of the Saybagh District Urumqi CHP Heating Network Component (herein after “SHN”). There are seven residential areas, one hospital, one mosque and other government agencies and trading markets. According to questionnaire investigation, the most common way for the residents to travel is taking bus. The less common ways include walking, driving, taking taxi and taking corporations’/institutions’ bus. As the pipeline of this project will be laid along the roads, the impacts on residents’ travel is comprehensive. The key impacts are on the travels to working. Other travels, like shopping, children going to school and going to the hospital will also be affected. People that often go to the mosque are mainly old men. The affected population is relatively small, but impacts on individuals are significant. However, such inevitable impacts on residents’ life will last short and will stop as the construction is completed. 4.1.6.2 Impacts on Traffic The pipeline network will pass the west of the crossing of Qidaowan Village, where shops, residential buildings, markets and mosque are located together. However, the impacts on the traffic at this section during the construction phase are minor because the distance between the pipeline and the intersection is large. In addition, the residents walk mostly and driving is less in this area.

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4.1.6.3 Impacts on Public Transport One of the impacts of pipeline construction on the public transport is the loss of passengers. The distance between stops increases, so the income of the Bus Company would decrease. Consequently, staff’s income would be influenced. The other impact is that the passengers would spend more time on the way to bus stops. It is also inconvenient for passengers if the bus stops and routes are changed. 4.1.6.4 Impacts on Ethical Culture and Cultural Heritages According to the field investigation, one mosque lies near the crossing of Qidaowan Road and Henan East Road. This mosque is a general religious site but not cultural heritage. Local culture should be respected during the construction. No cultural heritage was found along the project. However, the project goes through the old Urumqi, it is probable to find underground culture heritage. Thus, the construction should be stopped once culture relics is detected and this should be reported to environmental protection staff at the site. The environmental protection staff is responsible for protecting the site and informing the cultural heritage agencies that will cope with the issue.

4.2 Impact Assessment during the Operation Phase

4.2.1 Acoustic Environment Assessment during the Operation Phase Noise sources during the operation phase of the UHN include the pressure- isolated heat exchange station and substations. The pipeline would not cause noise impact. The acoustic wave would attenuate when it goes through the buildings in which the pressure-isolated heat exchange station, substations and peak balancing boilers are set. The acoustic wave would reach the prediction point after noise attenuation by distance, sound barriers and air absorption. The attenuation factors also include rain, snow, fog and temperature gradient, etc. Thus, the real noise attenuation in sound transmission process is higher than the predicted attenuation. That is, the predicted noise level is higher than real value at each prediction point. The acoustic impact is predicted as the following formula: A) Outdoor sound source Calculate the octave-band sound pressure level of the sound source at the prediction point   = −  r  ∆− Loct (r) Loct (r0 ) 20lg  Loct  r  0 Where, Loct(r) represents the octave-band sound pressure level of the prediction point; Loct(r0) represents the octave-band sound pressure level of the reference point at r0; r represents the distance between the sound source and the prediction point, m; r0 represents the distance between the sound source and the reference point, m; and Loct represents the attenuation by various factors (including sound barriers, blocks, air absorption and ground effect, etc.) If the octave-band sound pressure level of the sound source Lw oct is already known and it can be seen as above ground, then L (r ) = L − 20lg r − 8 oct 0 w oct 0 Calculate the sound level LA produced by the sound source by combining the sound pressure level at each octave band

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B) Indoor sound source Calculate the octave-band sound pressure level of some sound source at an indoor point that is close to space enclosing structure as shown in the following figure   = +  Q + 4  Loct,1 Lw oct 10lg   4πr 2 R  1 Where, Loct,1 represents the octave-band sound pressure level of some sound source at an indoor point that is close to space enclosing structure; Lw oct represents the octave-band sound power level of the sound level; r1 represents the distance between the sound source and the point that is close to space enclosing structure; R is room constant; and Q is direction factor.

Window

Sound source L1 L2

Indoor Outdoor

Calculate total octave-band sound pressure level of all sound sources at the point close to space enclosing structure.  N  = 0.1Loct ,1(i ) Loct,1 (T) 10lg∑10   =  i 1

Calculate the sound pressure level at an outdoor point that is close to space enclosing structure L (T ) = L (T ) − (TL + 6) oct,2 oct,1 oct Convert the indoor sound sources to an equivalent outdoor sound source with the outdoor sound level Loct,2(T) and the area of acoustically transparent parts. Calculate No. i octave-band sound power level Lw oct of the equivalent sound source. L = L (T ) +10lg S w oct oct ,2 Where, S represents the area of acoustically transparent parts. The equivalent sound source is located at space enclosing structure, the octave-band sound power level of which is Lw oct. Calculate the sound level of the equivalent sound source at the prediction point with the method of outdoor sound source discussed above. C) Total sound pressure level  N M   1  0.1L 0.1L = A in,i + A out , j Leq(T ) 10lg ∑tin,i10 ∑tout, j10   T  = =  i 1 j 1  Where, T represents calculation time for equivalent sound level; N represents the number of outdoor sound sources; and M represents number of equivalent outdoor sound sources.

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The noise of the UHN mainly comes from the pressure-isolated heat exchange station and substations. When they are operating, they would have impacts on surrounding environmentally sensitive points. As for pressure-isolated heat exchange station and substations, circulating water pump and make-up constant pressure pump are main noise sources. The noise is acceptable as long as the following measures are implemented. The measures include reasonable sitting and construction of pressure- isolated heat exchange station, selecting low-speed and low-noise circulating water pumps, replacing traditional valve with variable-speed control device and setting damping base for equipment. The sound insulation effects of windows and doors should also be considered. Thus, noise nuisance could be avoided. The noise impact of substations on the environment is minor. The sound level of operating pump and make-up pump is lower than 80dB(A). The noise of substations is calculated as the attenuation of a 80dB(A) sound source. The sound level attenuates to 50dB(A) in an area with radius of 10m due to the wall. The sound level can meet the standard of Category II function zone in the “Emission Standard for Industrial Enterprises Noise at Boundary” (GB12348-2008). As new stations are all located in communities, they can not be built within the area with radius of 40m from sensitive buildings in order to alleviate the impacts of noise and vibration on residential buildings. According to land occupation of the proposed substations, they can satisfy the requirements about the attenuation distances. Thus, the substations will have minor impacts on the acoustic environment. 4.2.2 Assessment of Waste Gas During the Operation Phase The UHN mainly contains heating pipeline and substation projects. During normal operation, as plate heat exchanger will be applied and hot water will be running in a closed system, no air pollutant will be generated. Thus, impacts of waste gas during the operation phase are not assessed in this EIA. 4.2.3 Assessment of Wastewater during the Operation Phase Wastewater during the operation phase is mainly back wash water discharged from substations. Waste water from the substations of the UHN is mainly back wash water of softened water treatment equipment. According to experiences, the discharge volume from each substation ranges from 120 m3 to 180 m3 every year. According to analogical analysis of monitoring data of water discharged from existing urban community with heat exchanger, the concentrations of pollution factors are as following: pH 8.1, SS 44mg/L, BOD5 4.55 mg/L and CODcr 22.5 mg/L. It pertains to clean wastewater. The wastewater, which meets the “Discharge standard for municipal wastewater” (CJ3082-1999), can be discharged into municipal drainage directly and would not cause environmental pollution. 4.2.4 Assessment of Solid Waste during the Operation Phase During the operation phase of the UHN, the solid waste is mainly domestic waste of staff in the pressure-isolated heat exchange station and substations. The staffing is 302 persons. If it is calculated as 1.0 kg domestic waste per person every day, about 110.23 ton domestic waste will be discharged every year during the operation phase. Un-orderly disposal of domestic waste will lead to breeding of mosquitoes and flies,

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4.2.5 Environmental Risk Analysis during the Operation Phase (1) Types of environmental risks According to experiences, the primary accident risk of heating network is pipeline explosion during the operation. The explosion would lead to leakage of hot water that flows into green belts and makes the plants scalded or burned. Such accident may cause damages to ecological environment. In addition, as large volume of hot water effuses from the underground, it may burn people on the street. This would also waste water resources, pollute water environment, bother people’s travel and affect scenes of the city. Another risk of heating network comes from checking wells along the pipeline. The wells are normally closed. Seeper and organics inevitably exist in the wells. They may generate toxic and harmful gases like H2S by microorganisms. The concentration would get high due to poor ventilation and long-term accumulation, so the maintenance men may get poisoned. (2) Causes of accident risks The surface elevation of the UTPP is 710m while the users are higher. The surface elevation of the farthest user is 863m. The elevation difference between the lowest and highest points is 153m, so the network security with high elevation difference becomes an issue. It is analyzed as below: The hydrostatic pressure at the node where the point with high surface elevation switches to the low point is high. Strong resistance to pressure of equipment is required. Water hammer may be caused by abnormal operation like pump being suddenly stopped and valve being closed too fast. (3) Prevention measures According to the above analyses, the emergent measures are proposed as below: a) Once the accident happens, principals of relevant agencies should implement measures and organize the rescue in light of specified emergency plan. They should also report the accident to relevant local authorities and environmental department. The agencies should get to the accident site once they are informed. b) The management agency should lead and direct the rescue in light of specified emergency plan. Necessary measures should be carried out to reduce the lost. c) Heating control valve should be closed once leaking or explosion accident happens. The hot water shall be led to the nearest well cellar so that it would not go into green belts. The pipeline should be repaired immediately. In addition, check and maintenance of heating pipeline network should be strengthened to avoid such accident. d) When it is definitely unable to control the accident, the principals should report to relevant upper departments and ask for backup as soon as possible. Members in the command headquarter must get to the accident site and conduct rescue immediately. Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

e) As for possible damages of checking wells to maintenance men, they should detect the air in the wells to ensure the security before getting down into the well. At the same time, some people should stay on the ground, who shall rescue the colleague down in the well to prevent casualties once abnormal situation happens.

4.3 Cumulative impacts of the two components

Under the combined heating between the CHP plants and the peak balancing boiler room, the thermal power plant located outside the downtown area will provide stable basic heat load. When the outdoor temperature goes down beyond the capability of the basic load provided by the CHP plants, the peak balancing boiler room located inside the downtown area will be actuated for heating. Thus, the peak balancing boiler room will run a shorter time in the heating season than when the boiler room supplies heat separately. Thereby, the coal consumption and pollutant emissions will be reduced. In addition, the 100m high chimney in the thermal power plant is higher than the 50m high chimney in the boiler room. Advanced techniques and high-efficiency desulfurization and denitration equipment is utilized in the thermal power plant so that the high-efficiency centralized control and high-altitude emissions of air pollutants replaces the low-efficiency scattered control and low-altitude emissions. It is in accordance with national environmental policies. This project could improve air quality, make remarkable environmental benefits, improve the investment environment and promote local economic development. 4.3.1 Emission Reduction of the UHN component (1) Standard Coal Saving According to the feasibility study of the Urumqi DH project, the volume of coal that will be saved by this project is presented in Table 4.3-1.

Table 4.3-1 Changes in Coal Consumption Item Without-project With-project Existing New scattered Peak Thermal Way of heating scattered boiler boiler rooms balancing power plant rooms boiler room Heating volume (GJ/yr) 6261,000 3268,000 8810,000 720,000 Efficiency 0.65 0.85 0.90 0.75 Coal consumption (ton/yr) 431,200 172,100 438,200 43,000 Total coal consumption 603,300 481,200 (ton/yr) Saved coal (ton/yr)) 122,160 Saved standard coal (ton/yr) 93,110 Coal consumption (kg/m2) 40.96 32.67 Standard coal consumption 31.22 24.90 per area (kgce/m2)

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(2) Reduction of Air Pollutant Emissions As estimated by the feasibility study, through the implementation of the UHN subproject and retrofitting of its peak load boiler house in emission control, which are all completed in 2010, about 93,110 ton standard coal and associated 6,909 ton SO2, 2,615 ton dust and 258,140 ton CO2 could be reduced every year (see Table 4.3-2).

Table 4.3-2 Pollutant Emission Inventory Before and After the UHN subProject Emission inventory Emission reduction After Item After retrofit Without peak After retrofit Without peak Before of peak load load boilers of peak load load boilers boiler room retrofit boiler room retrofit Standard coal consumption 459,900 366,800 366,800 93,100 93,100 (ton)

SO2 (ton/year) 7798 889 1544 6909 6254 TSP (ton/year) 3109 494 780 2615 2329

CO2 (ton/year) 1,275,000 1,016,800 1,016,800 258,140 258,140

4.3.2 Cumulative impacts after the implementation of UDHP After the implementation of both the SHN and UHN subprojects, the overall reduction of coal and air pollutants by the UDHP is estimated and summarized in Table 4.3-3. With retrofitting of its peak load boiler house in emission control, all completed in 2010, further reduction is anticipated, as indicated by Table 4.3-2.

Table 4.3-3 Reduction of Coal and Air Pollutants After the Implementation of the UDHP

Saved Saved coal Reduced SO Reduced TSP Reduced CO Component standard 2 2 (ton) (ton) (ton) (ton) coal (ton) SHN 154,100 117,400 8,201 3,175 325,600 UHN 122,200 93,100 6,254 2,329 258,200 Total of UDHP 276,300 210,500 14,455 5,504 583,800

Prediction of air emission was not carried out during the EA preparation, as the project itself doesn’t add any flue gas emission. However, as part of the UDHP’s feasibility study, prediction on ambient air quality improvement resulted from the emission reduction through the project has been made using computer-based model. The prediction result is presented in Table 4.3-4.

Table 4.3-4 Ambient Air Quality of Urumqi after the Implementation of the UDHP All the Air After the Pollution No. Indicator Present implementation Control Projects of the UDHP in Urumqi Annual number of days when 292 1 262 273 APl100 (day)

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SO 2 2 0.159 0.10 0.06 (mg/m3) Heating NO 3 2 0.085 0.07 0.04 season (mg/m3) PM 4 10 0.202 0.05 0.03 (mg/m3) Note: API refers to “Air Pollution Index”: 0-50 means “Excellent”, 51-100 means “Good”, 101-150 means “Slightly Polluted”, 151-200 means “Lightly Polluted”, 201-250 means “Moderately Polluted” and 251-300 means “Heavily Polluted”.

As the above table indicates, after the UDHP project is implemented, concentrations of SO2, NO2 and PM10 can meet Grade II standards in the “Ambient Air Quality Standard” (GB3095-1996). According to the prediction, ambient air quality of Urumqi will be significantly improved after the project implementation.

4.4 Induced impacts

As a result of the project, some small boilers are to be replaced by the project DH network and will be closed according to the city government’s policy. Some of them will be kept as back-up for emergencies. Most of them will be demolished sooner or later in the future. Since these boilers belong to different owners and beyond the control of the PMO, the timing for demolition is uncertain. This constitutes indirect impacts induced by the project. 4.4.1 Closure of Boilers The EA team conducted the survey of most of boilers to be replaced by the project. There are 14HOBs that will be replaced in the UHN component., Including 9 larger heat-only-boilers(HOBs) houses(subtotal 23 boilers),and 5 smaller HOBs (subtotal 30 boilers). The total number of boilers is 53. The investigation of asbestos in the 9 larger centralized boiler houses is introduced in Table 8.2-1 which shows 8 boilers of them contain asbestos. The 30 small boilers were all built before 2000 thus mostly contain asbestos materials. Therefore, total number of boilers that might contain asbestos is about 38 in the UHN component.

Table 8.2-1 Investigation of Asbestos in the Six Centralized Boiler Room Total Heating Steam Total Startin If asbestos No. Boiler room Number steam area (m2) tonne tonne g time contained tonne

Friendship 1 38.81 40 2 80 80 2001 Garden Xinkuang 65 1 65 2004 2 75 130 Group 65 1 65 2005 80 1 80 2006 3 Bus Company 110 160 40 2 80 2001 4 Hualing 308.1 40 3 120 400 1996 YES 40 1 40 1996 YES 40 2 80 2001 80 1 80 2002 Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

80 1 80 2005 Liudaowan 5 90.8 40 3 120 120 2002 Village 10 1 15 1997 YES Changqing 15 1 20 1998 YES 6 63 95 Team IV 20 2 40 1999 YES 20 1 20 2002 Total 685.71 23 985 985 8 boilers

4.4.2 Environmental impacts of boilers dismantlement Environmental problems caused by boiler dismantlement mainly include: (1) Dust in the construction phase Dust in the construction phase mainly come from the dismantlement of boiler equipment and chimney. Cleaning and transporting soils and dust on-site would also cause dust pollution.

(2) Wastes from site clean-up Wastes like broken bricks and rubble and old boiler equipment would be generated in the process of site clean. If they are not disposed in time, visual appearance would be influenced. Dust would be caused in windy and dry days.

(3) Asbestos pollution of small boilers demolition The asbestos is used for temperature insulation outside the boilers and pipelines, which can enhance the heat efficiency of boilers and reduce heat loss. According to site investigation, asbestos materials are used in boilers that started running before 2000, while they are not utilized in boilers that started running after 2000.

Asbestos is listed in the “National Hazardous Waste Inventory”, the type of which is HW36. Its code is 900-032-36. Asbestos materials would be unpackaged during the dismantlement of small boilers. The asbestos fibers would be released and float in the air for a long time and might be inhaled by human. Although asbestos is definitely identified as a carcinogen, it would only damage human health when its concentration in the air reaches a significant level. The impact of asbestos is minor as long as it is stored and disposed properly.

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5. INFORMATION DISLOSURE AND PUBLIC CONSULTATION

In light of the requirements of environmental protection regulations of China and the World Bank’s environmental assessment policy (OP4.01), the public participated in this EIA. Feedbacks from experts, management agencies and organizations and residents along the project on this project and their suggestions were collected.

5.1 Objectives, Scope and Approaches

Public participation plays an important role in a project EIA. It is an effective approach to inform decision-making. Public participation can help to better understand of potential impacts of the proposed project, to propose more practical design and mitigation measures, and to gain citizens’ support. Surrounding organizations and residents whose interests are directly influenced by this project were consulted in this EIA. The citizens were informed with the importance of this project and its possible environmental impacts through public participation. The EIA team positively contacted with the residents and organizations and collected their comments and suggestions on this project. Mitigation measures were sought by the public. This is an effective approach to minimize environmental impacts.

5.2 Process of Announcement and Consultation

Two rounds of public participation were determined by the EIA team in light of the plan of the UDHP and the EIA process. The first round was from stage of composing EIA proposal to field investigation and environmental prediction stage. The second round lasted from the completion of the draft EIA report to the World Bank’s evaluation and approval stage. 5.2.1 The First Round Public Participation 5.2.1.1 Information disclosure The first round information disclosure was posting brief information of the UHN in main streets and residential areas during the field investigation. It was also posted in the internet and newspaper. The details are shown in Table 5.2-1.

Table 5.2-1 The First Round of Information Disclosure st 1 Round Title Position Time of Information EIA notice of the Urumqi Communities, residential Disclosure Centralized Heating Energy areas and schools in the 27/01/2010-28/02/2010 Efficiency Retrofitting Project project region Public Participation notice of EIA for the Urumqi Website of the UMEPB 02/03/2010-12/03/2010 Centralized Heating Energy http://www.wlmqhb.gov.cn Efficiency Retrofitting Project

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Public Participation notice of EIA for the Urumqi Xinsilu Website 03/03/2010-10/03/2010 Centralized Heating Energy http://www.xj163.cn Efficiency Retrofitting Project Environmental Information notice of EIA for the Urumqi Urumqi Evening News 02/03/2010 Centralized Heating Energy Efficiency Retrofitting Project

(1) Posted notices

Sub-district offices and communities in the project region

Residential areas and schools in the project region

(2) Website notice Website of the UMEPB http://www.wlmqhb.gov.cn

Xinsilu website http://www.xj163.cn

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(3) Notice in the Urumqi Evening News

5.2.1.2 Interviews The EIA team interviewed surrounding organizations, sub-district offices, communities and residential areas along the pipeline of the UHN from January 27th to February 28th 2010. The “Public Participation Questionnaire” (see the annex) was distributed to them. The environmental, social and economic benefits and possible positive and negative impacts on the environmental quality and living conditions as well as proposed mitigation measures were explained. They provided their comments and suggestions on concerned environmental issues related to this project. The details of this round of consultation are shown in Table 5.2-2.

Table 5.2-2 The First Round of Public Consultation Interview region The UHN region Number of people 160 Sex ratio (male: female) 68:32 Age 18-30: 9% Age 30-40: 15% Age ratio Age 40-50: 36% Age 50-60: 26% Above age 60: 14% 1st round of Related organizations Four sub-district offices in the project region consultation

Experts Experts of noise prevention in the EPB

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The public Officials, civil servants, doctors and other individuals

5.2.1.3 Meeting The meeting was held in the meeting room of the XETCC in April 2010. The Expert consultation was carried out in this meeting. The EIA team introduced the background of this project and EIA proposal. The experts from XDEP and UMEPB commented on priorities and provided suggestions, which could guide the EIA and helped the EIA team to propose corresponding measures. 5.2.2 The Second Round Public Participation 5.2.2.1 Information disclosure The second information disclosure was carried out after the draft EIA report was completed. Main impacts and measures and the environmental management plan (EMP) were announced on local media with link to full version of the EIA report. The details are presented in Table 5.2-3.

Table 5.2-3 The Second Round of Information Disclosure Title Position Time 2nd EIA notice of the Urumqi Communities, residential Centralized Heating Energy areas and schools in the 08/04/2010-18/04/2010 Efficiency Retrofitting project region Project 2nd Environmental Xinsilu Website Information notice of EIA for http://www.xj163.cn 2nd Round the Urumqi Centralized 08/04/2010 of Heating Energy Efficiency Website of the UMEPB Information Retrofitting Project http://www.wlmqhb.gov.cn Disclosure Environmental Information notice of EIA for the Urumqi Centralized Heating Energy Urumqi Evening News 21/04/2010 Efficiency Retrofitting Project EIA Report of the Urumqi Centralized Heating Energy The POUITC 21/04/2010 Efficiency Retrofitting The UMEPB Project

(1) The second website notice The second notice on the website of the UMEPB http://www.wlmqhb.gov.cn

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The second notice on the Xinsilu website http://www.xj163.cn

(2) The second notice in Urumqi Evening News

5.2.2.2 Interviews In the second round of interviews, environmental issues and mitigation measures that the public concerned in the first round of public participation were

Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã communicated. It was expected to gain the public’s understanding of this project and corresponding mitigation measures. The details are shown in Table 5.2-4. Table 5.2-4 The Second Round of Public Consultation Interview region The UHN region Number of people 90

Sex ratio (male: female) 68:32 Age 18-30: 9% Age 30-40: 27% Age ratio Age 40-50: 33 % Age 50-60: 20% Above age 60: 5% Officials, civil servants, doctors and other The public 2nd round of individuals consultation Some members of the People’s Political NGOs Consultative Conference

5.2.2.3 Meeting The second meeting was held in the Mingyuan New Times Hotel by the POUITC on May 25th 2010. The participants included members of Municipal People’s Political Consultative Conference, Municipal People’s Congress, staff from communities related to this project and staff from sensitive points (schools and hospitals). The participants communicated their concerned issues with the POUITC, the EIA team and the Social Assessment team. Comments on issues the surrounding public concerned and their suggestions were provided in this meeting so that targeted measures could be proposed.

5.3 Results and Feedbacks

5.3.1 Feedbacks on Information disclosures

Feedbacks on the notices of this EIA are concluded in Table 5.3-1. Table 5.3-1 Feedbacks on Information disclosures Time Approach Feedbacks Staff from the Urumqi Environmental Institution asked the detailed scope of Ten-day notice on the website of the centralized heating of this project. the UMEPB They hoped the heating could be operating soon. Mar. 2nd - Mar. th Staff from Urumqi Morning News 12 , 2010 (1st) Seven-day notice on the Xinsilu asked the project process and website arrangement. Some resident asked the construction notice in Urumqi Evening News time and hoped it would be initiated as soon as possible. April 8th – notice on the website of the No feedback yet. April 18th, UMEPB nd 2010 (2 ) notice on the Xinsilu website No feedback yet.

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Time Approach Feedbacks Some person from the Huadian notice in Urumqi Evening News Thermal Power asked the project progress.

5.3.2 Feedbacks to Interviews

Feedbacks to interviews are concluded in Table 5.3-2. Table 5.3-2 Feedbacks from Interviews Component Position Time Approach Issues Responses of the EIA team 1st round The construction unit should Sub- Jan 27th – Questionnair communicate with the public district Feb. 28th, e Impacts of security traffic management offices 2010 pipeline agency to control the traffic and key 2nd round construction volume and direction on commun Apr. 5th – on the traffic construction road sections. The Interviews ities Apr. 10th, traffic control should be carried 2010 out well. Generally, pipeline

st construction should not be 1 round conducted in nighttime. The Jan 27th – Questionnair th design unit would be asked to Feb. 28 , e consider shorten as much 2010 construction period as possible. Construction is not allowed Impacts of near residential areas and schools construction from 0 a.m. to 8 a.m. in order to dust and reduce noise impacts on the School, construction residents and schools. residenti noise at night al areas There are many residents and Reserve and organizations in the project passage region. The roads should not be hospitals nd 2 round Carry out closed during the construction to The UHN th Apr. 5 – security th Interviews ensure normal life of residents Apr. 10 , measures and work of organizations. 2010 Passages should be reserved in advance. Road barriers and warning signs should be set. The UDHC composed the bilingual “Convenience Guide of the UHN”(in Chinese and Uygur). Pedestrian paths should be built at places where people Impacts of travel frequently. Security work the should be done well. The construction construction would be conducted on the at daytime but not at nighttime to 2nd round Muslims’ avoid nuisance. It is suggested Mosque (May 20th, travel that relevant agencies could 2010) Hope to make long-term plans to avoid respect ethnic repeated constructions. custom and Mosque is special religious culture revenue. The Muslims must take body purification and take off shoes.

5.3.3 Feedbacks from Meetings

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(1) Issue: the corporations that need to be integrated into the proposed heating network hoped their employees could be properly arranged. (2) Response: The project owner has proposed several ways to cope with the corporations that need to be integrated into the proposed heating network, including: (a) big corporation being acquired by the UDHC; (b) merger of state-owned property and the UDHC; (c) boilers that need to be integrated into the proposed heating network being rebuilt to public substations. The ways to arrange employees include: (a) this employees in state-owned corporations and institutions will be arranged by the corporations and institutions themselves. No employee can be left jobless. (b) The UDHC could hire regular staff in the centralized heating corporations that are excellent after the examination. 5.3.3.2 Users in the heating network integration areas (1) Issue: the main concern of the users in the heating network integration areas is the heating service after the network integration. (2) Response: the heating service could be guaranteed by corporation with strong producing and service capacity. The users can enjoy high-quality heating service with moderate price. The state-owned corporation takes more social responsibilities. The heating for low-income groups it is difficult for whom to pay for the heating fees can be guaranteed. The environment of areas where individual-owned buildings are focused can be improved. The quality of residents’ life can also be significantly improved. 5.3.3.3 Citizens traveling during the pipeline construction (1) Issue: the main concern of citizens that will travel during the construction phase is the possible traffic congestion that may cause nuisance to normal life or work of the residents, organizations, schools and corporations. The schools hoped the construction could be carried out in holidays to reduce impacts on students when they go to or off school. The coach station hoped surrounding constructions might be carried out from April to July before school holidays to avoid traveling peak when college students go back home. Based on their needs, business men in the markets hoped the constructions near the markets could avoid tourism peak from July to September. (2) Response: The construction period shall be shortened to reduce disturbances. The road would be recovered as soon as possible. In particular, traffic accidents and injuries due to road excavation should be prevented.

5.4 Conclusions of Public Consultation

The EIA team interviewed affected corporations, residents in the project region and the project owner and management agencies of the UHN and got the public’s attitude to, comments on and suggestions to this project. To conclude, the corporation, staff and residents had all known about this project. They were looking forward to it and thinking it was an important approach to improve air quality of Urumqi. Individual life and health would benefit from this project as well, so they could understand the negative impacts on their life and work. They hoped the government and the project Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã owner could concern more about citizens’ interests, shorten construction period, and recover the road as soon as possible. In particular, traffic accidents and injuries due to road excavation should be prevented. Responding to the public consultation, the UDHC composed the bilingual “Convenience Guide of the UHN” (in Chinese and Uygur), which explains issues that needs to be paid attention to during the construction. The guide also informs the residents with traffic management plan, traffic control, by-pass routes, time and positions. The information was announced via media in advance. It aims to minimize negative impacts of the construction through the above measures. Meanwhile, the “Circular about Strengthening the Protective Measures of Disposing Hazardous Materials like Asbestos During the Dismantlement of Boilers” and the booklets titled “The Damage and Disposal of Asbestos” were delivered to the construction units by the POUITC in order to enhance the awareness of construction units and the owners of the boiler rooms.

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6. ANALYSIS OF ALTERNATIVES

6.1 Alternatives of “With” and “Without” Project

The analysis of “without” project alternatives is environmental baseline analysis. It analyzes the development trends of regional environment and environmental issues related to the proposed industry if the proposed project would not be carried out. Coal-smoke air pollution appears in Urumqi, particularly in winter. One of the reasons is the special geographic and meteorological conditions. Another reason is high energy consumption of the industries and civil organizations due to backward technology. In addition, low-price coal is consumed with regardless of cost for coal resource is abundant in Urumqi. Many coal-fired pollutants have been discharged in the air. This is the main factor that exacerbates the air pollution. As this project is implemented, the environmental protection devices in peak balancing boiler rooms will also be upgraded. Every year, about 93,110 ton standard coal can be saved; 6,909 ton SO2, 2,615 ton dust and 258,140 ton CO2 emissions can be reduced. This means large volume of air pollutant emissions will be reduced, which will improve the air quality in Urumqi. The CHP can gradually reduce pollutant emissions from the boilers and save much energy. It is beneficial for air pollution prevention and energy saving.

6.2 Alternatives of Project Locations

6.2.1 Layout of the pressure-isolated heat exchange station The key functions of pressure-isolated heat exchange station are: (1) to isolate the exposure of parts of the pipeline and the substations to the hydrostatic pressure resulted from the land elevation difference; (2) to separate the transmission pipeline network from the transmission/ distribution network and to reduce the pressure of the transmission pipeline network; (3) to reduce the dynamic hydraulic fluctuation in accidents and to prevent the obstruction from water hammer. The alternatives of the heat exchange station of the UHN are compared in Table 6.2-1. Table 6.2-1 Comparison of Alternatives of the Heat Exchange Station Alternati Alternative 1 Alternative 2 ve Position 12 km away from the thermal power plant; North of the position of alternative 1; at located at the south of East Extension of the north of Henan East Raod, east of Suzhou Road; 2km away from Qidaowan the planned Exhibition and Convention Road in the east. Center. 10km away from the thermal plant. Advanta (1) This area is flat without any buildings. (1) This area is flat without any ges A key planned road is in the north. It can buildings. Henan East Road lies in the be well conneted to municipal facilities. south. It can be well conneted to Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

(2) The pressure on L2 network can be municipal facilities. reduced. It is safer for existing network. (2) It is closer to the thermal power (3) It is close to the UTPP and the plant, 10km away. Weihuliang Thermal Power Plant in elevation, so the impacts on existing network of Weihuliang Power Plant are minor. Disadva It is 12km away from the thermal power (1) L2 is a little longer than that of ntages plant. Alternative 1. (2) The elevation is lower than that of the Weihuliang Power Plan. Conclusi Alternative 1 is recommended. on 6.2.2 Layout of the substations The substations should be set based on the following principles: (1) Indirect connection would be applied to substations which could make the operation, adjustment and maintenance convenient. (2) Existing boilers would be utilized as much as possible to reduce the rebuilding of L2 and L3 network. (3) Small boiler rooms that are close to each other shall be incorporated and rebuilt to substations. (4) The new substations shall be located at the load center to reduce the length of L2 network and to save investment and operating cost. (5) New substations should not be too large or too small. The scale shall be controlled in the range of 30,000- 200,000 Yuan RMB/m2. (6) Short-term and long term constructions shall be considered at the same time. 6.2.3 Layout of the heating pipelines 6.2.3.1 Layout principles of heating network The trunk pipeline shall be designed based on the following principles. (1) It should be tried to lay the trunk pipeline through the load center. The pipeline shall be reduced as much as possible while the users are satisfied. (2) The pipeline shall be laid along the roads so that it is convenient for future construction and maintenance. (3) The pipeline shall be set at areas where less resettlement is needed to save project investment. (4) The pipeline shall be laid in flat areas to avoid height fluctuation. 6.2.3.2 Laying of heating pipeline network The heating pipeline network can be laid in three ways: directly buried, in pipe trenches or overhead. In the directly buried way, the pipelines are laid underground so they are not exposed to external factors or it rarely get damaged. In the case of leakage, the harm to people and the environment is limited. However, it is difficult to detect the leak point. Although the construction period is short and cost is low, the earthwork volume would be large. The highest temperature of the temperature insulation materials of directly buried pipelines is 135oC. Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

In pipeline trenches (including pipeline jacking) way, the pipeline network is laid underground, so it is not exposed to external factors or it rarely gets damaged. In the case of leakage, the harm to people and the environment is limited. It is easy to find out and repair the leak point. As it is buried underground, volume of earthwork is large. The construction period is longer and higher cost is needed. In overhead way, the pipeline network is exposed to external factors and easy to be damaged. In the case of leakage, it is harmful to people and the environment. However, it is easy to check and repair in this way. The pipelines occupy large space and affect the city’s visual appearance. Earthwork excavation is less with longer construction period and lower investment. Considering the safety of the network operation, the buried network was selected on the basis of the parameters of the heating network, the routing and direction of the network and the city’s visual appearance. As the temperature of water in L1 network is 140 at the first stage and will be raised to 150 at the second stage, the pipeline of L1 heating network from the thermal power plant to the pressure-isolated heat exchange station will be buried in trenches. As the temperature of water in pipeline from thermal power plant to L1 heating network and in L2 network from pressure- isolated heat exchange station to users’ substations is 130, directly buried way will be mainly applied and the pipeline trenches (including pipeline jacking) will be applied in some sections. Special treatment will be made to the pipeline that runs across important road intersections or road sections where it is unsuitable for excavation (e.g., when it runs across riverside rapid roads or railways, etc.). Shallowly buried and excavated way is recommended for the pipelines with radius more than DN1000. Pipeline jacking is recommended for those with radius less than DN1000.

6.3 Alternatives of Technology and Techniques

Through decade efforts on air pollution control in Urumqi, the heating technology has developed from heating by scattered coal-fired boiler rooms to centralized heating by large coal-fired boiler rooms and to centralized heating by CHP. The advantages and disadvantages of these technologies are discussed in Table 6.3-1.

Table 6.3-1 Comparison of Different Heating Technologies No. Technology Advantage Disadvantage The boiler rooms are randomly built in urban areas. The pollution sources Heating by Low investment and operation are scattered with small scale, which scattered coal- 1 cost; easy management and is not good for air pollution control. fired boiler maintenance The energy efficiency is the lowest. rooms Pollutant emissions can not meet the standards. Centralized Large-scale boiler room with The boiler rooms are built in urban heating by high energy efficiency; areas. There are a lot of pipeline 2 large coal- High techniques can be applied to constructions. The pollutant fired boiler air pollution control emissions are possible unable to Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

rooms meet the standards through terminal control of air pollution. Energy efficiency is higher than thermal power plan and heating respectively. The air pollutant emissions per Centralized heating area are the lowest. The investment and cost are high. 3 heating by The scale effect makes air The requirements on management CHP pollution control more economic. are strict. It is easier to meet the emission standards. The CHP will be built outside the built up areas.

As discussed in the above table, air pollutant emissions could be gradually reduced by developing centralized heating through CHP. The air pollution could be alleviated and the energy could be saved with low energy consumption. According to the requirements in the “Forbidden Zones and Strict Management Zones of firing high-pollution fuels”, both new and expanded coal-fired boilers are forbidden in the forbidden zones of firing high-pollution fuels since 2010.

6.4 Alternatives of Heating Fuels

Given the coal-based energy structure of Urumqi, natural gas accounts for only 3.7% of primary energy consumption. The increase rate of gas use is 25%-30% due to the rapid urban development. However, the gap of gas supply in summer and winter are 0.2 million m3 and 1 million m3. The reasons include: (1) gas supply is insufficient; (2) seasonal differences of consumption are obvious; and (3) it is hard for upstream gas supply companies to balance seasonal different demand. In order to guarantee living gas, measures like controlling gas heating in new communities and gas vehicles, and constraining normal production of factories that needs natural gas as input, have to be implemented. In August 2009, China National Petroleum Corporation emergently initiated Northern Xinjiang Gas Supply Component of the Project of Natural Gas Transmission from West to East China Line 2. This component is proposed to be completed at the end of 2010. It is planned to supply 6.6 billion m3 gas to northern Xinjiang, 3 billion m3 of which will be supplied to Urumqi. The problem about gas gaps in Urumqi could be resolved. It is crucial to optimization of energy structure and environmental protection. In this EIA, it is assumed that annual supply of 3 billion m3 natural gas from Northern Xinjiang Gas Supply Component of the Project of Natural Gas Transmission from West to East China Line 2 is reliable. In addition, several gas sources are available for Urumqi. And the coal gas project will be implemented. In this context, the gas supply is predicted to reach 5 billion m3 in 2015. The proportion of gas to primary energy consumption will be 11.2%. The rate of gas use of urban residents will be 100%. The gas heating will account for 45%.

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Table 6.4-1 and Table6.4-2 present some of the indicators cited from “12th Five Year Plan of Energy Consumption Structure of Urumqi” and “Urban Heating Structure Adjustment Plan of Urumqi”.

Table 6.4-1 Indicators in “12th Five Year Plan of Energy Consumption Structure of Urumqi” Year 2008 2015 Energy consumption Consumption Proportion Consumption Proportion Total energy consumption 21.7228 36 (million ton standard coal) Coal (million ton) 16.4822 74.86% 24.40 60.8% Petroleum products (million ton) 2.5942 20.58% 4.50 23.1% Natural gas (billion m3) 0.486 3.74% 2.405 11.2% Other energy and new energy 0.1419 0.82% 1.40 4.9% (million ton standard coal)

Table 6.4-2 Indicators in “Urban Heating Structure Adjustment Plan of Urumqi” 2009 2015 Year Area Proportion Area Proportion (million m2) (%) (million m2) (%) Heating through CHP 13.50 13.12% 90 60% Coal-fired centralized heating 63.20 61.44% 0 0% Heating through scattered boilers 19.66 19.11% 0 0% Gas heating 6 5.83% 50 33.33% Heating through other clean 0.50 0.5% 10 6.67% energy Total construction area 102.86 150

It is planned to replace existing centralized coal-fired substations and scattered small coal-fired boilers with heating through CHP and natural gas heating. Natural gas is proposed to be used for peak balancing heat sources of CHP. Natural gas boilers will be promoted in areas where the CHP can not cover. The gas heating will account for 33.33% of total heating.

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7 Environmental Management Plan

The development and implementation of this environmental management plan (EMP) are the basis of environmental management of this project. The EMP aims to ensure the owner obeys environmental regulations and laws and implements various environmental measures proposed in the EIA report during the design, construction and operation phases, so that the win-win situation of project development and environmental protection could be achieved.

7.1 Institutional arrangement and supervision mechanism

The responsibility of the PMO, the project owner and operators, contractors, engineering supervisors, environmental external monitors and relevant local authorities are described in Table 7.1.1. The supervision mechanism for EMP implementation is further explained below: (1) The contractors are responsible for implementing mitigation measures during construction, and the operator of heating network (UDHC) is responsible for implementing measures during operation phase. (2) The supervisor engineer is responsible for daily supervising the EMP implementation during construction and recording the effectiveness of the mitigation measures and any problems in their monthly supervision reports. (3) The UDHC will be responsible for irregularly or regularly inspecting and examining the project progress and the implementation status of the EMP. Quarterly reports will be prepared and submitted to the POUITC which is the PMO. (4) Qualified monitoring institute to be commissioned by the UDHC to conduct environmental monitoring according to the monitoring plan in this EMP. (5) The PMO (POUITC) will have overall responsibility for oversight on environmental management of the project and reporting to the World Bank.

Figure 7.1-1 presents the institutional arrangement of the environmental management of this project.

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XDEP The World Bank

UMEPB UMCC

POUITC

UDHC B E r a n n v c d i h r i o s

h t n r e C m i a B C c C X o t t e E G n i E s E n n

t M H M i r t g T n a a

E S l

C c c S

U t D o U s U C o u r m I u r p s p m e a r q n v i i i

s e o s r

o s f

Environmental Environmental Environmental management and supervision management and implementation organizations in agencies implementation the design and construction organizations in the phases operation phase Fig. 7.1-1 Institutional Arrangement

Abbr. in Figure 7.1-1: Xinjiang Department of Environmental Protection: XDEP Urumqi Municipal Environmental Protection Bureau: UMEPB Project Office of Urumqi HRBEE International Technological Cooperation: POUITC Urumqi Municipal Construction Commission: UMCC Urumqi District Heating Company: UDHC Beijing Gas and Heating Engineering Design Institute: BGHEDI Xinjiang Environmental Technology Consulting Center: XETCC Central Environmental Monitoring Station of Urumqi: CEMSU

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Table 7.1-1 Institutional Arrangement and Environmental Management Responsibilities Phase Stakeholders Environmental responsibilities Staffing XDEP Approving EIA documents 1 POUITC, Urumqi Municipal Construction Guiding, supervising, coordinating and generally organizing relevant work 1 Commission (UMCC) Design and Proposing environmental guidelines and objectives and integrating this EMP in bidding preliminary UDHC (the owner) 1 documents phase Beijing Gas and Heating Engineering Providing technical support for environmental management 1 Design Institute (BGHEDI) (design unit) XETCC (EIA team) Proposing the environmental management plan (EMP) 5 Guiding, supervising and coordinating relevant work POUITC Reviewing environmental monitoring report and forwarding the implementation report of 1 the EMP submitted by the owner to the World Bank Supervising the environmental management and preparing environmental monitoring report UDHC (the owner) 1 during the construction phase and environmental monitoring report for accident. Implementing this EMP and other environmental protection measures Contractors 1 Construction Conducting environmental protection training for construction staff phase Conducting regular supervision to ensure the implementation of environmental protection measures Engineering and environmental supervisor 1 Recording the implementation of environmental protection and problems in monthly supervision reports Qualified monitoring institution Environmental monitoring during the construction phase and environmental monitoring for 1 commissioned by the UDHC accidents UMEPB Examining the environmental management during the construction phase 1 POUITC, UMCC The same responsibilities as that in the construction phase 1 Implementing environmental protection measures and this EMP UDHC (the owner and the operator) 1 Ensuring the normal operation of environmental protection equipment Operation Organizing the approval of the completion of environmental protection equipment according XDEP phase to “Three Simultaneousness” requirement Environmental monitoring during the operation phase and environmental monitoring for CEMSU 1 accidents UMEPB Examining the environmental management during the operation phase 1

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7.2 Mitigation Measures

On the basis of environmental impacts identified in the above assessments, mitigation measures during the construction phase and the operation phase of the UHN are proposed. The details are listed in Table 7.2-1.

Table 7.2-1 Mitigation Measures for the UHN Main negative Phase Activities Mitigation measures Implementer Supervisor impacts This EMP should be integrated into the bidding document and contracts to ensure its Bidding UDHC POUITC implementation.

Preliminary preparation phase The substations should be set based on the following principles: (1) Indirect connection would be applied to substations which could make the operation, adjustment and maintenance convenient. (2) Existing boilers would be utilized as much as possible to reduce the rebuilding of L2 and L3 network and associated social disturbance. Beijing Gas Major (3) Small boiler rooms that are close to each other shall be incorporated and rebuilt to and Heating requirements on To avoid noise, substations. Engineering UDHC, the Layout and dust etc by the (4) The new substations shall be located at the load center to reduce the length of L2 network Design POUITC design of deign and to save investment and operating cost. Institute substations (5) New substations should not be too large or too small. The scale shall be controlled in the (design unit) range of 30,000- 200,000 Yuan RMB/m2. (6) Short-term and long term constructions shall be considered at the same time. (7) Minimum distance from nearby residence and other sensitive receptors should be kept and engineering measures are taken to minimize noise impact.

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Main negative Phase Activities Mitigation measures Implementer Supervisor impacts The heating pipeline network shall be designed based on the following principles: (1) The owner should communicate with related road maintenance and pipeline construction organizations and try to organize the works together. The owner should consult the public security traffic management agency, Bus Company and directly affected organizations, e.g. schools and markets so that they could be prepared and make adjustment in advance. Propaganda should be carried out so that the directly affected people could receive correct Layout of information and get prepared. heating pipeline - (2) It should be tried to lay the trunk pipeline through the load center. The pipeline shall be network reduced as much as possible while the users are satisfied. (3) The pipeline shall be laid along the roads so that it is convenient for future construction and maintenance. (4) The pipeline shall be set at areas where less resettlement is needed to save project investment. (5) The pipeline shall be laid in flat areas to avoid height fluctuation. (1) The education, supervision and management of construction staff shall be strengthened. The civilized construction should be advocated. (2) The construction scope shall be restrained. The land takes of construction can not be expanded without permission. (3) Stratified excavation should be carried out for trench excavation according to soil Construction phase phase Construction characteristics. The soil shall be piled at one side. In addition, stratified backfill is required to Impacts of recover original soil structure and to alleviate negative impacts on soil. Engineering trench (4) The irrigation channels and culverts should be kept clear during the construction. The Construction trench supervisor excavation on irrigation channels and culverts should be clear from April to October and the flood culvert unit, excavation UDHC, the soil and should be clear from March to September by carrying out the construction in advance or contractors POUITC vegetation building temporary bridge or culvert. (5) Periodical watering of the construction site shall be conducted during the trench excavation. The proper frequency of watering is three times per day in order to minimize the negative impacts of construction dust on surrounding residents. (6) Periodical sweeping and washing of the construction site are needed. The site should be kept clean. (7) Barriers shall be set around the construction site.

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Main negative Phase Activities Mitigation measures Implementer Supervisor impacts Impacts on the ambient air (1) Watering is required near the residential areas. It shall be conducted twice to three times per within the day in order to reduce impacts of construction dust on residents. Construction construction (2) Granular materials like cements should be canned or bagged. Unpackaged transport of such dust and areas materials is forbidden. Dust and leakage during the transportation should be avoided. It should machinery Impacts on be covered by tarp when being stored. exhaust surrounding (3) Civilized construction shall be conducted. The machinery should be maintained, repaired residents’ and operated properly to reduce air pollutant emissions during the construction. working and (4) Barriers should be installed around the pile yards of construction materials. living The schools hoped the construction could be carried out in holidays to reduce impacts on Construction phase Social impacts: students when they go to or off school. The coach station hoped surrounding constructions influences on might be carried out from April to July before school holidays to avoid traveling peak when traffic Engineering college students go back home. Based on their needs, business men in the markets hoped the Construction Pipe trench (affecting supervisor constructions near the markets could avoid tourism peak from July to September. The public unit, laying residents, UDHC, security traffic management agency hoped the construction at busy sections could be carried out contractors schools and POUITC in holidays or nighttime. Thus, the owner shall take these factors into account when they make hospital along the construction schedule. The construction time can be flexible as long as the residents are not the pipeline) disturbed.

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Main negative Phase Activities Mitigation measures Implementer Supervisor impacts (1) Bilingual warning signs (in Chinese and Uygur) should be set at construction sections, including safety sign to pedestrians, alert of slowing down to drivers and traffic forbidden signs, etc. (2) More sidewalks shall be set where pedestrian traffic is busy and safety measures should be conducted. Social impacts: (3) During road construction, one of half way would be built and the other half could be open. Engineering influences on Construction Pipe trench Fence should be installed in the middle of the road. Vehicles are forbidden to ensure supervisor travel safety of unit, laying pedestrians’ safety. UDHC, residents along contractors (4) Safety measures at road sections in front of the schools are particularly important, including POUITC the project setting warning signs, fence and crosswalks and strengthening safety education for students, etc. The owner should communicate with schools in advance and also coordinate with the schools, transport agency and Bus Company. (5) Barriers should be set during the pipeline construction in residential areas in order to avoid pedestrians falling into the trench. (1) Low-noise equipment or that with noise reduction and isolation device shall be used. (2) Construction timing needs to be proper. The construction period shall be reduced as much as Pipe trench Noise impacts possible to reduce the time that noise lasts. It should be avoided to utilized high-noise machinery laying, on residents, at the same time. Temporary noise isolation structure or sound barriers are needed at some construction of schools and construction sites where noise impact is major. pressure-isolated hospitals near Engineering (3) Civilized construction shall be conducted. The machinery should be maintained, repaired Construction station and the pipeline, supervisor and operated properly to reduce noise during the construction. unit, substations, pressure- UDHC, (4) The operation of high-noise machinery should be stopped at night (10 p.m.– 8 a.m.). contractors construction isolated heat POUITC (5) The construction at sections where schools are located is forbidden during the periods of machinery for exchange university and high school entrance examinations. rebuilding station and (6) Working hours of machinery operators and workers shall be controlled according to labor substations substations hygienic standards. The construction unit is required to provide personal protective measures for workers, e.g. helmet and earplug, etc. Pollutants Pipeline going falling into the (1) Wastewater should not be discharged into the surface water. through the surface water (2) Random disposal of pollutants should be prevented. In particular, oil leak from machines Shuimo River in during the into the water must be prevented. excavation way construction

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Main negative Phase Activities Mitigation measures Implementer Supervisor impacts soil leakage or Excavation and un-orderly backfill for Residual soil shall be transported to the Urumqi Construction Residual Soil Pile Yard or other piles during pipeline places where earthwork is needed. transportation construction, and disposal insulation for Visual pipeline, The construction waste shall be piled at designated sites in light of the requirements of influence and packaging “Administration Measures of Urumqi on Urban Construction Waste” and transported to the dust in windy materials, waste operating Urumqi Construction Waste Landfill. and dry days of construction Domestic waste Mosquitoes, The domestic waste shall be piled at designated sites and transported to the Urumqi Landfill of construction flies, odor and every day. staff diseases (1) Normal life of residents and work of organizations should be ensured. Passages should be reserved in advance. Road barriers and warning signs should be set. (2) The construction unit should communicate with the public security traffic management Construction phase phase Construction Impacts of agency to control the traffic volume and direction on construction road sections. The traffic excavation on control should be carried out well. urban traffic Engineering (3) A traffic management plan during the construction phase should be composed (see in the Construction and residents’ supervisor Annex). The information about traffic control, bypass routes, time and positions should be unit, Excavation of travel, working UDHC, announced in advance via media. contractors pipeline and living POUITC (4)It is not proper to bury pipeline directly when it goes through Hetan Road, flyovers, railway construction Impacts on and pipeline crossings. Overhead, pipeline trenches or pipeline jacking could be applied. traffic when Pipeline trench could be carried out where excavation during the operation phase is not proper. pipeline goes (5) The construction should be stopped once culture relics is detected and this should be through the reported to environmental protection staff (HSE) at the site. The HSE is responsible for roads protecting the site and informing the cultural heritage agencies that will cope with the issue. (6) Ethnic culture and custom should be respected during the construction to avoid culture conflicts.

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Main negative Phase Activities Mitigation measures Implementer Supervisor impacts Operating pump, Noise impacts (1) High-quality low-noise imported pump shall be used. The sound level of one pump should generator and on residents not be over 80 dB(A). deflation and near the (2) Vibration reduction for base and shock absorber shall be installed. Pump inlet and outlet pressure Operation phase pressure- shall be connected with robber hose. Concrete base shall be built under the pump. Vibration adjustment of isolated heat reduction should be installed between the base and the floor or walls to eliminate impacts of pressure-isolated exchange low-frequency noise due to the structure. heat exchange UMEPB, station and (3) Sound enclosures shall be installed at substations where the noise at surrounding residential UDHC station and POUITC substations areas is still beyond standards after above measures are implemented. substations Softened water Water discharge, back pollution and The softened water discharge, back wash water discharge and domestic wastewater should be wash water air pollution drained into civil drainage that will goes into the wastewater treatment plan in the end. discharge from due to random the substations discharge Domestic waste The domestic waste shall be piled at designated sites and transported to the Urumqi Landfill UMEPB,

Operation Operation Health impacts UDHC at substations every day. POUITC phase phase Backfill should be carried out in time after the pipe trench laying. Residual earthwork shall be Construction Impacts on cleaned. The site leveling shall be conducted well to recover the site to original appearance. waste and city’s visual After the road is recovered, the public security traffic management agency should reset the signs abandoned soil appearance and road marking, etc.

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Main negative Phase Activities Mitigation measures Implementer Supervisor impacts (1) Once the accident happens, principals of relevant agencies should implement measures and organize the rescue in light of specified emergency plan. They should also report the accident to relevant local authorities and the environmental department. The agencies should get to the accident site once they are informed. Damages to (2) The management agency should lead and direct the rescue in light of specified emergency animals, plants plan when they receive the accident report. Necessary measures should be carried out to reduce and people on lost. the ground (3) Heating control valve should be closed once leaking or explosion accident happens. The hot Wasting water water shall be led to the nearest well cellar so that it would not go into green belts. The pipeline Accidents Generating should be repaired immediately. In addition, check and maintenance of heating pipeline network harmful gas should be strengthened to avoid such accident. that might (4) When it is definitely unable to control the accident, the principals should report to relevant poison the upper departments and ask for backup as soon as possible. Members in the command maintenance headquarter must get to the accident site and conduct rescue immediately. men (5) As for possible damages of checking wells to maintenance men, they should detect the air in the wells to ensure the security before getting down into the well. At the same time, some people should stay on the ground, who shall rescue the colleague down in the well to prevent casualties once abnormal situation happens. Backfill should be carried out in time after the pipeline laying. Residual earthwork shall be Construction Impacts on cleaned. The site leveling shall be conducted well to recover the site to original appearance. waste and city’s visual After the road is recovered, the public security traffic management agency should reset the signs abandoned soil appearance and road marking, etc.

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7.3 Environmental Monitoring Plan and Budget

In order to ensure various negative environmental impacts to be controlled and mitigated, the whole project cycle should be strictly and scientifically followed and standardized environmental management and supervision should be contacted. The Environmental Monitoring Program during the construction and the operation Phases are proposed in Table 7.3-1.

Table 7.3-1 Monitoring Points and Contents Estimated cost Responsible Phase Item Position Method Frequency (RMB Yuan) organization Construction Trench Applying the methods in Noise, dust Vist community phase excavation Annex C “Monitoring Urumqi City Welding and Tianninghuayuan Methods of Noise for Noise, dust Environmental Sensitive Buildings” in laying Community Conducting the Monitoring the “Environmental monitoring once Station (EMS) quality standards for per construction examines the noise (GB3096-2008)” 3,000 stage or when monitoring Applying the monitoring complaints are randomly and the Earthwork Friendship method of dust in the Noise, dust received. construction unit backfill Garden “Technical Specification conducts regular for Environmental monitoring Monitoring (Chapter: Ambient Air)” Civil Conducting the Applying the methods in Urumqi EMS engineering monitoring once Annex C in the examines the of pressure- Boundary of the per construction Noise, dust “Measurement Method 2,000 monitoring isolated heat station stage or when of Environmental Noise randomly and the exchange complaints are for Construction Site” construction unit station received. conducts regular

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Applying the monitoring conducts regular method of dust in the monitoring Construction Boundary of the “Technical Specification of Noise, dust stations for Environmental substations Monitoring (Chapter: Ambient Air)” Applying the monitoring method in the “Technical Conducting Air quality Regular Specification for online regular (TSP, PM10,, monitoring points 200 Environmental monitoring per SO ) in Urumqi Urumqi EMS 2 Monitoring (Chapter: month Ambient Air)” Operation phase Boundary of the Applying the methods in Conducting pressure-isolated the “Emission Standard monitoring once

heat exchange for Industrial Enterprises in heating season Noise 2,000 station Noise at Boundary” and when Urumqi EMS Boundary of (GB12348-2008)” complaints are substations received Total 7,200

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7.4 Environmental Training Program

The objectives of the environmental training are to make the stakeholders familiar with this EMP and national and local environmental requirements about the construction and operation of heating network so that the environmental protection measures could be implemented. Capacity building is proposed for environmental management staff and environmental supervisors. The training is part of the technical assistant (TA). Training program also includes the training for the owner and the construction workers. All of the construction units, the operators and engineering supervisors are required to participate in the Health and Safety Training before the construction. The UDHC is responsible for organizing environmental experts to provide training before the construction. The training program is shown in Table 7.4-1.

Table 7.4-1 Training Program for Environmental Protection Staff Cost Number of Time Trainee Contents (RMB trainee (day) Yuan) Introducing environmental impacts and mitigation measures during the construction phase presented in this EMP; Introducing particularly sensitive areas and issues and general situation of areas along the project The contractors and as well as the list of environmental Two environmental protection objectives; persons per 2 60,000 protection staff on Education of protection of construction site cultural heritage and respects to stage ethnic minorities’ culture and custom. Simple monitoring method of noise and control measures during the construction phase; Fine for violating relevant regulations or laws. Measures and requirements in this EMP; Requirements about environmental protection and safe construction in environmental laws, Two regulations, construction plans and Environmental persons per supervision specifications. 3 90,000 supervisor construction Ambient air monitoring and air stage pollution control techniques as well as noise monitoring and noise control techniques. Requirements on the Environmental Report The UDHC and its The above contents during the Two 3 90,000 environmental construction phase; persons

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management staff Environmental protection measures during the operation phase in this EMP; The operation and maintenance of environmental equipment. Total 240,000

7.5 Reporting Mechanisms

The PMO (POUITC) will be responsible for collecting environmental monitoring reports and environmental supervision reports, and prepare the Monitoring and Evaluation (M&E) report about the EMP implementation to the World Bank every half year. The contracted environmental monitoring unit/agency will submit the monitoring reports and data to the POUITC in time after the monitoring tasks are completed. The monitoring reports will include the analyses for monitoring data, e.g. if it meets the standards, and the causes why it does not meet the standards, etc.

The “M&E Report for EMP implementation” could include the following: • The implementation of the EMP, e.g. training progress, the implementation of measures proposed to modify those problems from the previous time and their effectiveness, etc. • The project progress, e.g. the length of laid pipeline network, etc. • The implementation of environmental protection measures, environmental monitoring and main monitoring results as well as problems and their causes. • If there is environmental complaint, the contents of complaint, the causes analyzed, solutions and the public satisfaction will be recorded in the report. • Action plan for the next half year, including measures to correct problems found.

If there is environmental complaint, the environmental principal or the management staff in charge of environmental affairs of the construction units and the POUITC will report the issues to local environmental authority. The incident will be reported to further superior agencies level if necessary. At the same time, POUITC will initiate investigation on the complaints and develop mitigation measures to address them. The effect of the mitigation to the complaints will be feedback to the complaining public and to solicit their further opinions until they are satisfied.

7.6 Closure plan for small boilers (1) Institutional arrangement for boiler dismantlement

According to the “Circular about Approving and Forwarding the ‘Implementation Plan for Urumqi CHP Network Integration’ ” (Wuzhengban [2010] Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

No.127), management organizations of boiler dismantlement are mainly Urumqi’s each district governments and district environmental protection bureaus. Their respective responsibilities include:

• The UMCC is responsible for comprehensive planning of coal-fired boiler dismantlement within the covering area of each CHP, composing annual program, coordination, supervision and management. • The district governments are responsible for organizing the implementation of coal-fired boiler dismantlement within their authorized district. They are also responsible for dismantling the boiler rooms and the affiliated equipment. • District environmental protection bureaus are responsible for sending notices about modification for network integration within a time limit to boiler rooms in the proposed integration area. The notices would order the boiler rooms to carry out boiler dismantlement within a time limit.

Since most of these small boilers are beyond the control of the PMO and UDHC, their demolition will need to be overseen by the third party. According to the domestic institutional arrangement in China and that in Urumqi, the municipal government and EPB as well as the concerned district governments and EPBs will be responsible for supervising and monitoring the demolition process to ensure it is conducted in an environmentally sound manner and that any hazardous wastes (such as asbestos) from the demolition are handled and disposed of properly.

The PMO has sent an official letter, viz. the “Letter about Proper Disposal of Wastes Generated from Dismantlement of Small Boilers” to the UMCC, which suggested the environmental protection measures be implemented in the process of dismantlement of small boilers and be supervised by the UMEPB.

(2) Environmental impact mitigation measures for boiler dismantlement

The measures for proper handling of boiler dismantlement and disposal of wastes are listed in Table 7.6. For those small boilers owned by the UDHC, UDHC will be responsible for implementing measures in the closure plan when demolishing the boilers and the PMO will supervise. For those small boilers owned by others, the owners will implement the closure plan and the Urumqi governments and the EPBs will be responsible for supervision, as stated in the section above.

Table 7.6 Mitigation Measures for Boiler Dismantlement Main Key Implem negative Mitigation measure Supervisor activities enter impacts (1) Watering on site is required. It shall be conducted twice to three times per day in Impacts on order to reduce impacts of construction dust concerned ambient air Owners on residents. district Construction quality and of (2) Civilized construction shall be governme dust surrounding small conducted. The machinery should be nts and residents’ boilers maintained, repaired and operated properly EPBs in living to reduce air pollutant emissions during the Urumqi construction.

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(3) Barriers should be installed around the pile yards of construction materials. (1) The construction wastes shall be piled at

designated sites in light of the requirements concerned of “Administration Measures of Urumqi on Owners Impacts on district Urban Construction Waste” and transported of Site clean visual governme to the operating Urumqi Construction Waste small appearance nts and Landfill. boilers EPBs in (2) Old boilers should be collected and Urumqi transported by certified institution. The protective equipment for workers must be checked. The workers could unpack the asbestos only if the equipment can satisfy the requirements. Warning signs should be set at the construction sites. Watering must be carried out during the unpacking process. The dismantlement workers should wear dust masks and protective clothing. Asbestos Detailed program shall be prepared. fiber may Integral peeling should be carried out. Owners Urumqi lead to Disposal of Safety barriers should be installed around of governme cancer if it asbestos the working sites. Entrancing is prohibited. small nt and is inhaled Designated professionals are responsible for boilers City EPB, in human directing the on-site works. body. The dismantled asbestos shall be collected in sealed bags and then stored in special cement sealed cans. Finally, the cans should be sealed with cement. The cans with asbestos shall be transported to Urumqi Hazardous Waste Landfill. It should be disposed with deep and permanent burying. A commission contract should be signed to ensure the effective disposal.

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7.7 Management plans to address social impacts

The project entity contracted an experienced local social to conduct social analysis to the project area. Through broad participations of project stakeholders, project information dissemination, public consultations, interviews, focus group of discussions, and quantity of data information analysis, the social analysis concluded that there will not be direct impacts to land acquisition and structure demolition caused by Bank supported project and the all communities fully supported the project. The social analysis also prioritized the stakeholders concerns that were identified as indirect impacts, were concentrated on three major issues. Those issues were suggested to be minimized or mitigated as the disturbance to city traffic during project civil work, workers in small closure boilers that might be dismantled during the project implementation or later and heating price influence to the vulnerable families. It is important to ensure the success in the project program of small boiler closure and the avoidance of enterprise workers’ income reduction, the avoidance of the influence to vulnerable families, and the enhancement of city traffic management and emergency management (i.e. in the unlikely event of water pipeline break, a cut in electricity during pipeline installation) during project construction period. Based on the informative social analysis, the PMO prepared the stand-alone impact analysis to the vulnerable people and the monitoring plan, the monitoring plan for the workers in the closure boiler stations, traffic management plan, and emergency management plan. 7.7.1 Traffic Management Plan This Bank supported second levels of heating transferring pipeline will be constructed along main city roads with about 55 km in two districts in Urumqi city. The construction period of each section (street block) will take one or one and half of month. It is really challengeable to manage the project well and implement the targeted tasks on time. The earthwork could be only carried out in half of a year from April to October since the earthworks are restricted by cold weather in winter season and interrupted by rainy summer season. The project management plan takes mitigation measures to enhance the project management and the earthwork implementation. However, citizens were experienced in the daily traffic facts and had their concerns to the traffic disturbances. In order to manage a better project from different perspectives, the project authority contracted an experienced local social consulting team to conduct the social analysis by participatory approaches in 41 engaged urban communities and prepared a traffic management plan and monitoring plan to the traffic management. The project authority will assign full-time staff to be the executive manager in the field as the head of monitoring team. This team will be grouped in the construction sites by local social specialists, representatives of the communities/schools/mosques/hospitals/owners of shops/enterprises, local traffic policemen and volunteers in the districts. The sections of the constructed roads will be sealed by fences and notices including the project information, hot-line, supervisors and contractors, will be pasted on. The social specialists will collect the information from daily traffic, citizens complains and report to the project authority and the project leading group consisting of executive Major and Head of municipal traffic management office. A quarterly traffic monitoring report will be sent to the Bank. 7.7.2 For emergency manner as the unlikely event of water pipeline break, a cut in electricity during pipeline installation, any citizen could call to the project leading Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã group. The hot line and booklets will be disseminated in each community and pasted on the community information walls. 7.7.3 Monitoring plan of municipal programs for workers affected by small closure boilers 7.7.4 The concerns of the workers affected by small boiler disclosure were addressed by the project authority. A monitoring plan was prepared to monitoring the implementation of municipal policy that indicates zero laid-off workers if the factories/enterprises are closed down by reasons. The monitoring teams will be grouped by local social specialist, representatives of the workers in the small boilers and the staff from the project authority. Yearly monitoring will be reported to the Bank and their findings would be reported directly to the project authority even upper to the project leading group. 7.7.5Heating assistance plan to low income families Based on the information analyzed by the local social team, some of the low income families did not pay much attentions to the heating price increase since Urumqi launched a program to support the low income families with the policy of no extra charge to those families for years, but some of the low income families were getting worried to the heating price and the negative change of the municipal policy. The project authority prepared a monitoring plan as heating assistance plan to low income families. The monitoring team will consist of local social specialist, the representatives of the communities/low income families and staff from project entity. Yearly monitoring report focusing on no extra charge to those low income families will be sent to the Bank and project entity. Urumqi municipality will afford to the increase of the heating price through municipal budget as it is implemented currently.

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8. DUE DILIGENCE REVIEW OF ASSOCIATED FACILITIES AND PROJECT ACTIVITIES IN 2010

8.1 Heat Sources

Two existing CHP plants and three peak load boiler houses will supply heat to the heating networks of the project. As part of the World Bank requirements, due diligence review of these associated facilities with regard to their environmental performance are included in theEA. As this document is the EA for the UHN only, the chapter will only cover the heat sources for UHN, namely, Weihuliang-III CHP and Hualing boiler house.

8.1.1 Current Status of Heat Sources

The Weihuliang-III CHP is coal-fired using pulverized boilers for power and steam generation. It is using electrostatic precipitators (ESP) for removal of dust and particulate matters and wet lime scrubbing for flue gas desulfurization. Its on-line monitoring system shows that flue gas emissions have been compliant with national and local emission standards as well as with the WB/IFC Environmental Health and Safety (EHS) guidelines.

Boilers at Hualing boiler house are also coal-fired with some being fluidized-bed boilers and others being chain boilers. These boilers used to use water scrubbing and fewer stages of ESP for de-dusting and simple alkali for desulfurization. Its stack emission could not meet emission standards before retrofit. The current status of the heat sources are shown in Table 8.1-1.

Table 8.1-1 Heat Sources Related to the UHN Heating Counterpart Progress of Approval of heat source Treatment of smoke network heat source heat source project project project project This project was Wet lime scrubbing for approved by former flue gas desulfurization Weihuliang SEPA in the “Approval of and ESP for de-dusting. Phase III Under the EIA of Weihuliang The pollutant emissions Expansion operation CHP Phase III Expansion can meet the updated UHN Project of since Sep. Project of standards. The flue-gas CHP 2009 (2×330MW)”(Huanshen[ online monitoring is (2×330MW) 2007]No.280). connected to the Xinjiang(provincial) EPB.

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Peak load The EIA of this project Semi-dry lime or double- Hualing boilers. was prepared by Urumqi alkali for desulfurization Boiler Room Retrofitting Municipal Environmental and strengthen ESP or (6×29MW+ carried out Protection and Science water scrubbing for de- 2×58MW three times Institution and approved dusting The online hot water since by the UMEPB. monitoring of smoke is boiler) operation in connected to the Xinjiang 1996. EPB.

8.1.2 Air Emissions From 2009 to 2010, the air pollutant emissions of the peak balancing boiler did not meet the local standards in the “Emission Standard of Air Pollutants for Coal-fired Boiler” (DB65/2154-2010) of Xinjiang. The emissions were a little higher than the standards. According to the “Notice about Air Pollution Control of Corporations including Xinjiang Xinlian Thermal Co. Ltd. within a Time Limit” (Wuzhengtong [2010]No.29) promulgated on March. 29th 2010, 20 involved corporations needed to control the air pollution within2010. The boiler room owners should actively organize the controlling tasks. The main air pollutants like SO2 and dust should meet the 3 3 Urumqi emission standards (viz. SO2 150 mg/m and dust 50mg/m ) through installing electrostatic precipitator, bag precipitator and isolated high-efficiency FGD equipment, etc. The efficiency of electrostatic precipitator should not be lower than 99%. The desulfurization efficiency should not be lower than 80%. Hualing Boiler Room is included in the 20 corporations that needed to control the air pollution and to complete the retrofit by the end of 2010.

All other peak load boilers in Hualing have completed retrofit in the past few years. The last one, No. 7 boiler in the Hualing Boiler room is 58MW circulating fluidized bed boiler, was retrofitted at the end of 2010. The original system, electrostatic precipitator plus wet FGD equipment was not so efficient that could meet updated environmental indicators of Urumqi. The rectification of dust precipitator and FGD equipment for the entire Hualing boiler house has finished at the end of 2010 with on-line monitoring operated.

In China, flue gas on-line monitoring connected to local EPB is installed at the stack which is usually just one for a CHP or a boiler house. Therefore, monitoring result shows the emission level of the final discharge from the entire plant Online monitoring data in the heating season (November and December, 2010) of these heat sources was collected which show that the Hualing boiler house and Weihuliang-III CHP can meet all relevant air pollutant emissions standards, see Table 8.1-2.

Table 8.1-2 Air Pollutant Emissions of Related Heat Sources Heating NOx Compliant with Counterpart heat source Dust SO network 2 (mg/m3) National , local and project mg/m3 mg/m3 project WB’s standard

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Weihuliang Phase III Expansion Project of CHP 27 49 154 YES (2×330MW) UHN Hualing Boiler Room (6×29MW+2×58MW hot 25.3 94 NA YES water boiler)

As compared in Table 8.1-3, the local standard of Xinjiang (DB65/2154-2010) is the strictest one among the “Emission Standard of Air Pollutants for Coal-fired Boiler” (DB65/2154-2010), the “Environmental, Health and Safety Guidelines for Thermal Power Plan” (EHS) of the World Bank and the national standard “Emission standard of air pollutants for thermal power plants” (GB13223-2003) and “Emission Standard of Air Pollutants for Boiler” (GB13271-2001).

Table 8.1-3 Comparison of Relevant Standards WB’s Emission standard of Emission Standard Emission Standard of Guidelines for air pollutants for of Air Pollutants Air Pollutants for thermal power thermal power plants for Boiler Coal-fired Boiler” plant (GB13223-2003) (GB13271-2001) (DB65/2154-2010)

SO2 400 400 900 150

NOx 200 450 \ \ TSP 30 50 200 30

8.1.3 Wastewater The waste water from the CHP plant and the peak balancing boiler rooms is treated first in on-site treatment facilities according to domestic requirements and then discharged into civil sewage network, eventually treated at the Wastewater treatment plants. The concentration and volume of wastewater discharged out of the heat sources are shown in Table 8.1-5.

Table 8.1-5 Water Pollutant Discharges of Related Heat Sources Heating Annual COD COD Whether Counterpart heat source network wastewater concentration volume meets the project project volume (t/a) (mg/l) (t/a) standard Weihuliang Phase III 109 0.46 YES 4225 CHP (2×330MW) UHN Hualing Boiler Room 68 2.38 YES 48000 (6×29MW+2×58MW)

The Table shows that wastewater of the CHP plant and the peak balancing boiler rooms all met the Grade III standards (criteria for discharging into municipal sewage system) of “Integrated Wastewater Discharge Standard” (GB8978-1996).

8.1.4 Solid waste

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Main solid wastes of the CHP plants and the peak balancing boiler rooms are slag, fly ash and wastes generated from desulfurization. According to relevant regulations and standards in China, fly ash from coal-fired thermal power plant and boilers are not classified as hazardous wastes, but industrial wastes that can be recycled, e.g. in producing lower grade building material. The solid wastes from UHN heat sources are mainly utilized to produce construction material. The rest is transported to and disposed of together with domestic wastes in municipal landfills. The solid waste volume is listed in Table 8.1-6.

Table 8.1-6 Solid Waste Discharges of Related Heat Sources Heating FGD waste Counterpart heat source Ash Whether meets network (gypsum, Reuse rate project t/a the standard project t/a) Weihuliang Phase III Expansion Project of CHP 99621 718 Ash: 70% YES UHN (2×330MW) FGD waste Hualing Boiler Room (gypsum): 100% 2400 163 YES (6×29MW+2×58MW)

In conclusion, the environmental performance of these heat sources in terms of air emission, water pollution and solid waste management meets relevant environmental requirements in China and of the WB.

8.2 Project activity undertaken in 2010

According to the implementation schedule of the project and Urumqi government’s requirement to speed up the expansion of district heating, part of the project construction activity financed by the counter-part funding had started since April 2010 for both components. The construction has to stop around October 2010 when winter came and can only resume April next year normally.

In order for these activities undertaken during 2010 before the project appraisal to be eligible as part of the project under counter-part funding, a due diligence review is required by the Bank to see if it meets the Bank’s requirements on safeguard. The EA team reviewed both the existing EA documents (domestic EAs prepared by another EA institute and already approved by Urumqi EPB) and their implementation on the ground during 2010 construction season. Findings from the review are presented in the environmental due diligence report of 2010 activities.

The domestic EAs for the entire project were approved by Urumqi EPB before bidding of the construction. Based on domestic EAs, draft EMP was prepared by the EA team according to the Bank’s safeguard requirements early 2010. The draft EMP, mitigation measures from the domestic EAs supported by local engineering code for construction management were distributed together with design documents to the construction companies and the supervisors. Environmental training was also provided to the construction companies and the supervisors by the EA team. The noise and dust were monitored during the construction phase.

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The conclusion of the due diligence review is that project activities undertaken in 2010 have met the Bank’s requirements on environmental safeguard. Good practices from the 2010 construction program will be incorporated in the final EMP and continued during project implementation, such as distribution to affected residents a bilingual information booklet (in Chinese and Uyghur, see Annexes for originals) about construction activities, schedule, and alternative routes.

The review also identified some gaps in 2010 activities and made the following major suggestions for improvement to be incorporated in the final EMP and its implementation:

• In light of the features of different construction stages, it is suggested to conduct the supervision at three stages, viz. trench excavation stage, pipeline welding and laying stage and earthwork backfill stage. • Mitigation measures shall be adjusted in light of different sites. Some measures shall be strengthened according to the features of sites. • Communication with affected groups could be carried out in various ways to minimize the impacts of this project. • Horizontal and vertical coordination is needed to ensure that the construction is in order. In this way, adequate information could be obtained.

9. Conclusions

The centralized heating by CHP in the UDHP proposed to replace scattered heating is in accordance with national industrial and energy polices, the “Urban Heating Plan of Urumqi (2006-2020)” and principles in the “Urban Master Plan of Urumqi”. The pollution control measures are practical and effective. The emissions of all the pollution sources can meet the standards. The emission inventories can satisfy the total amount control indicators promulgated by the UMEPB. After the implementation of the UHN, 93,110 ton standard coal would be saved per year. 6254 ton SO2, 2,329 ton dust and 258,140 ton CO2 emissions would be reduced per year.

The UHN component mainly includes pipeline network, pressures-isolated heat exchange station and substation works. The adverse impacts of this project on the environmental are limited. The key environmental impacts during the construction phase include construction noise, dust, wastewater and solid waste and domestic wastes caused by the construction of the pressure-isolated heat exchange station and substations, as well as the construction noise and dust and impacts on traffic during the construction of pipeline network. Mitigation measures include properly arranging construction time and technology to control noise, watering to reduce dust and disposing domestic and construction waste in designated sites (see the detailed measures in the EMP).

The key environmental impacts during the operation phase include construction noise of the pressure-isolated heat exchange station and substations. The mitigation Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã measures include the ones to reduce noise of high-noise equipment to ensure that the noise can meet national and local standards.

After the project is implemented, the construction of new small boilers could be effectively controlled, the pollutant emissions from which could be reduced. To conclude, in the context that all of the environmental equipment is operated well, this project is environmentally feasible.

References

[1] “Circular of Forwarding the “Opinions on Promoting CHP to Fundamentally Resolve Air Pollution in Urumqi” ”, WuZhengBan [2006] No. 91, the Urumqi Government, Dec. 2006

[2] “Notice about Air Pollution Control of Corporations including Xinjiang Xinlian Thermal Co. Ltd. within a Time Limit”, Wuzhengtong [2010] No.29, the Urumqi Government, Mar. 2010

[3] “Prevention Program for Air Pollution in Winter of Urumqi (2010-2015)”, UMEPB, Sep. 2009

[4] “Approval Comments on the “Environmental Impact Form for CHP Project of Urumqi Thermal Power Plant”, XinHuanPingShenHan [2010] No. 14, XDEP, Jan. 2010

[5] “Circular about Approving and Forwarding the “Implementation Plan for Urumqi CHP Network Integration” ” (Wuzhengban [2010] No.127), the Urumqi Government, 2010

[6] “Letter about Proper Disposal of Wastes Generated from Dismantlement of Small Boilers”, Headquarter Office for Coordination of Air Pollution Control of Urumqi, Sep. 2010

[7] “Urban Heating Plan of Urumqi (2006-2020)”, the Urumqi Government, 2006

[8] “The Research of Causes of Air Pollution and Prevention and Control Strategy in Urumqi”, UMEPB, Dec. 2008

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ANNEX

Annex 1

Traffic Management Plan during Implementation of the Project

The Plan includes two parts. (1) Relevant preparation before work commencement and (2) Daily management plan during construction. The Plan is prepared according to Road Traffic Safety Law of PRC, Safety Production Law of PRC, Technical Specifications for Road Engineering Construction Safety, etc. Every unit and individual works for the Project and residents and pedestrian should follow the Management Plan. 1Plan for Relevant Preparation before Construction 1.1 Working Ideas that Person in Charge should have before Construction 1.1.1 The purpose is safety and providing convenience for people, coordinating all parties to have good information and minimizing adverse impact of traffic safety to people. 1.1.2 According to the principles of “Safety is first and prevention is basis” and “Safety should be taken care during production”, safety production should be conducted. Production and safety should be planned, arranged, checked, summarized and evaluated at the same time. 1.1.3 Person in charge of construction teams will be responsible for construction safety. 1.2 Preparation for approval before construction 1.2.1 Construction teams should provide written application to relevant traffic police and road policy team for approval before carry out construction. Wrriten application documents include approved documents by Urumqi Planning Bureau, design drawings about road traffic(provided by qualified design institute) with seal of Urumqi Traffic Police Team, construction organization plan (attached with safety facility arrangement map), contract, copy of supervision work contract, warranty agreement, work checking and acceptance table (attached with comments of traffic police agency). 12.2 Construction teams should actively consult traffic volume and traffic safety from traffic police, road policy team, affected community, relevant agencies, etc. and prepare traffic control and safety guarantee measure on the basis of design and technical requirements and improve construction safety plan. 1.2.3 Before approve by department in charge, approval should be obtained from traffic administrative department of public security. 1.2.4 Work that occupies one lane with length not more than 50m and can be completed within one day should be submitted to traffic poly and road policy team for approval 10 days before construction. Works that occupies carriageways (including emergency lane) and construction period does not exceed 30 days should be submitted to traffic poly and road policy team for approval 15 days before construction. For the road needs to be full closed (including emergency lane) and construction period is over 30 days, application should be made 20 days earlier and traffic police and road policy team will have site visit to check safety organization plan. Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

1.2.5 Prepare Emergency Aid Plan during Construction for the Project according to characteristics of the Project for approval and filing. 1.3 Site visit 1.3.1 Using non-motor ways as much as possible (sidewalk, for example) and landscaping area could be temporarily occupied to avoid affecting traffic. For example, during construction at North Nanhu Road, measures were used were removing medium strip and lamp post temporarily and then leveling and paving road surface, dividing the main road by fence and leaving 5 lanes at west side and occupying 2 lanes at east side for construction. Such measures could mitigate traffic block efficiently. 1.3.2 Temporarily increase and adjust routes and stops of public bus, distance passenger bus and tour bus. It should comply with travel requirements of traffic planning, smoothness, and convenient. 1.3.3 Go to site to learn traffic block time and establish relevant traffic diversity and bypass solution. For example, North Kunming Road (Suzhou Road-Kexue Yijie section ) and Kexue YijieNorth Kunmin Road – Tianjing Road sectionwere full closed for construction, and only emergency vehicles and construction vehicles were allowed to pass. Therefore, plan should consider to diverse traffic to other roads and built temporary bus stops. 1.3.4 Construction can only be carried out during night at busy sections such as railway station section. During construction, traffic police should patrol every day to guide traffic. Some workers can be arranged during day to assist traffic police to guide traffic. Access for traffic should be planned earlier. 1.3.5 Coordination should be made if there is cross with other project. Eg. There was crossing construction between water pipeline and heating supply project at Nanhu Road and which requires very high professional technique. Construction sequence should be well arranged before construction and professional person should work for restoration to minimize affect to traffic. 1.3.6 If alignment is difficult for construction, new construction plan should be prepared soon to avoid construction delay and affecting timely restoration of traffic. 1.3.7 Temporary access should be remained at dense population and business areas to minimize affect to business. 1.3.8 Construction team should investigate sinking works along alignment to avoid damage to optical cable, electric cable, road facilities, sewage pipeline, etc. 1.4 Disclosure of implementation plan. 1.4.1 For full closed construction sections, Urumqi Traffic Police Team and Road Policy Team should disclose to public with both Chinese and Uygur language. 1.4.2 If public bus that route should be adjusted, advertisement should be made 10 days before to public. 1.4.3 10 days before construction, relevant affected administrative department should be informed about the details of construction so that they can communicate with businessmen to do relevant preparation. 1.4.4 10 days before construction, communication should be made with directly affected schools and tell them the relevant safety measures to be adopted so that school can do some preparation and carry out safety education to students.

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1.4.5 Propaganda should be well done though various media. Construction should be transparent to let citizens to know the details of construction plan and the affect in advance through various media in both Chinese and Uygur language. A 24-hour hot line should be set with duty and record all information and report and feedback. Construction information should be disclosed to public through media and bulletin board at construction site. Comments of public should be reported to relevant authority in time. 1.4.6 Popularize the importance of “Blue Sky” project through various media and main methods and basic implementation process to let public have knowledge about the Project. Special attention should be paid to issues that may cause adverse impact and explanation should be made in advance so that public can do some preparation in advance. 1.4.7 Before construction, information board should be set at beginning and ending places of site and information as planned construction period, road section, persons in charge (and his/her telephone number), emergency telephone number and hot line should be disclosed. 1.4.8 Before construction, various propaganda means can be used to hire some volunteers to assist traffic police. Uniform and tools can be provided to them by Heating Energy Company to help in guiding traffic nearby school, communication, hospital, or where there is more population. 1.5 Preparation of different travel plans for different situation 1.5.1 Present policy can be adopted at busy sections ( odd and dual plate numbers) and timing available for traffic,etc. 1.5.2 When construction involves large community, temporary access or bridges should be available and effective communication should be made with community so that residents could have some ideas. 1.5.3 When there are special organs in the project area, such military area, temporary access should be reserved for petrol according to military security requirements. 1.6 Safety training before construction 1.6.1 Safety organization established at site before construction should have 1%~3% of total staffs working at site (who are familiar with local situation and language have priority). They will be responsible for the safety of workers and safety works and preventing accident from happening. Safety staffs have right to issue orders according to relevant regulations and adopt protection measures to prevent accident from happening. 1.6.2 Before construction, safety education should be carried out to all workers at least once a day they should sign their names for checking. 1.6.3 Explosive and flammable materials should be well stored and sufficient fire-fighting equipments should be equipped. All workers should be familiar with the property and using methods of the equipments. 1.6.4 Before construction, education on policy on ethnic minorities, knowledge of their costumes, etc. should be conducted to avoid problems. 1.7 Establishment of construction files. 1.7.1 Establishment of using file for various signs, publicity board, baffle, etc. 1.7.2 Establishment of management files of construction training. 1.7.3 Files of experience gained from working one different construction sections with different methods for mitigating traffic jam. 1.8 Daily traffic safety guarantee organization system

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1.8.1 Traffic Management Leading Group and working agency 1.8.2 Duty and obligations of member units 1City Government Office: General control, management and command. 2Urumqi Construction Committee: Organize relative units responsible for gas, water supply, etc. to cooperate the Project so as to ensure construction safety. 3Urumqi Heating Energy Company: Arrange and monitoring construction teams to work safely. 4Urumqi Traffic Police TeamCheck and guide traffic safety during construction. 5Construction teams: Work as required and cooperate with each administrative unit to ensure traffic safety. 6Other member units: Help in coordinating and cooperating according to their own roles. 1.8.3 Daily Management flow chart

Urumqi Hetaing Energy Construction duty

Diversion Plan, approve construction Apply for construction Contractor Approval Application

Urumqi Traffic Police coordinatio n

Disclose information Daily Management Plan during Construction Urumqi Construction Leading Group Urumqi CCCP 2 1 Different Safety Measures for different Conditions 2.1.1 For Full closed road section, warning signs and lamps should be checked all the time during construction. Starting and ending points should be fully closed to avoid people coming into the site. Safety patrol should check during break tine to ensure safety. 2.1.2 For half closed road section, width of road should be ensured for traffic safety. Warning signs should be set 50m ahead of construction site and mention the ways to go. Nigh warning signs should be luminous with both Chinese and Uygur languages and lightening. 21.3 For the road sections allow for traffic both directions, safety shield should not be removed for the purpose of construction and traffic safety should be ensured. Construction site should be cleaned in time to avoid adverse impact by waste materials. 2.2 Special conditions for sensitive areas 2.2.1 For Mosques and accesses where there are more pedestrians, relief road should be set and safety work should be done well. For example, access connecting South Youhao Road and Xibei Road is the main road for religious people living nearby to go to Xidaqiao Mosque. It is suggested to have half lane closed construction and set fence in the middle and no auto is allowed to ensure safety of pedestrians. Do not on look religious activities during construction. 2.2.2 For schools, construction is better to be implemented during summer vacation. If time is not available, protection fence should be set and remain pedestrian crossing nearby. Warning signs should be set and safety management during on and off school time should be strengthened. Meanwhile, contact with local community to assist management. Road should be restored immediately after construction completion. 2.2.3 For hospitals, they have many emergency bus (Called 120) and it is specified that they should park within 500m for emergency call anytime. Therefore, special place should be remained for hospitals for parking. Temporary access for hospital should be wide enough to facilitate hospitals’ need. Ã Ã (QYLURQPHQWDOÃ,PSDFWÃ$VVHVVPHQWÃ5HSRUWÃIRUÃ&RPSRQHQWÃÃRIÃ8'+3Ã8+1Ã

2.2.4 For military area, it is not allowed to stay in such sensitive area. Any suspicious situation should be reported to duty of military area in time and construction period should be as short as possible. 2.2.5 For passenger terminals, construction period is better to be arranged between April and July so as to avoid holidays and complete before the end of summer vacation. It I better to conduct full closed construction to accelerate construction speed. For example at Southern Xinjiang Passenger Terminal, due to busy traffic and frequent traffic block, it is better for full closed construction and guide traffic to go the other ways. During construction, traffic lights at Water Park should be stopped. It is because there was heavy traffic during 2009 construction because traffic lights were not stopped. 2.2.6 Besides reserved accesses, lightening and warning signs during night should be available and have patrols. 2.3 Implementation rules during construction 2.3.1 Periodical safety coordination meeting should be held to inform relevant laws and regulations on safety construction. 2.3.2 Warning signs should be set at least 50m ahead of coming vehicles and signs should be in both Chinese and Uygur languages. During night, it should be no less than 100m with reflecting lightening. 2.3.3 Construction teams should strictly follow specifications of JTG H30-2004 of PRC. All traffic and safety signs and protection facilities should follow specifications of GB 5768-20099 and GA 182-1998 of PRC. 2.3.4 During construction, specific construction date should be marked on construction board with names of safety guard, telephone number, etc. any problem found should be managed in time. 2.3.5 Construction teams should assign permanent persons to take care of safety facilities. Immediate measures should be taken to restore in case of damage, missing, moved, etc. to ensure safety facilities at good mood. 2.3.6 Workers should respect site visit by traffic police and road policy people and obey their management. 2.3.7 Enclosure should be set around construction site and lightening facilities should be se on enclosures during night. Bilingual sings (Chinese and Uygur) should also be signed. During construction, marked light and flashing light should be on (not including outside of construction site). 2.3.8 Workers should strictly follow safety operation specifications and working regulations and wear uniform and helmet. They are not allowed to go beyond construction site or cross road freely. 2.3.9 Before completion of maintenance, it is not allowed to remove or change location of safety facilities or change the scope of construction site. 2.3.10 Safety access should be provided for construction equipments and have permanent person to be responsible. Vehicles should be carefully operated. 2.3.11 All construction materials, equipments, machines should be well set to keep road safe and smooth. 2.3.12 Environment of construction site should be well maintained. Sewages should be cleaned in time and not wastes are allowed to be dumped randomly. 2.3.13 Hook, conveyer of large type of equipments is not allowed to extend outside of construction site during construction, and impact to normal traffic is not allowed.

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2.3.14 It is not allowed to withdraw from construction site during night. Warning work should be done well and necessary safety measures should be adopted. 2.3.15 All construction equipments should be checked periodically and safety inspector should record and sign. It is not allowed to use any unqualified equipments, facilities, etc. 2.3.16 All construction vehicles and equipments should be painted with unified color. Construction signs should be hang behind vehicles. Yellow waning lights should be on during driving and operation. All vehicles should go in and out of construction site from specified entrance and exit and not allowed to park outside of construction site. After completion of work, it is necessary to withdraw from construction site in time to avoid adverse impact to traffic. It is not allowed to use illegal vehicles for construction. 2.3.17 Construction period should be well arranged to avoid occupying road or work during night. In case road should be occupied, lashing light and guiding lights should be set at construction site. 2.3.18 During construction, necessary speed limit and warning is required during construction. Various electronically devices should be used to disclose construction information in time to warn drivers passing by. 2.3.19 During construction, it is better to excavate left side of main road and then right side. Minimization of cross-section is proposed. 2.3.20 Workers should set and remove safety signs and protection facilities in order.

3Works after completion of construction 3.4.1 After completion of construction, construction teams should remove barriers on the road and backfill the site immediately. Construction site should be well leveled to restore to original one. Hidden safety troubles should be eliminated and traffic should not be opened before checking and acceptance by traffic police and road policy team. 3.4.2 After construction, redesigned drain well should be at one level and in one line. It should be considered because it may affect traffic.

4Measures for temporary situation 4.1 Construction can be conducted as approved date. If completed in advance, approval agency should be informed. If extension is necessary, application should be made by levels and go through all procedures. 4.2 Emergency rescue due to damage of bridges, road, facilities or traffic accidents can be priority under the condition of safety. But report should be made to traffic police and road policy team within 12 hours. 4.3 In case of Grade I security duty, construction teams should stop the work according to requirements. 4.4 Work should be stopped in case of bad weather. During temporary stoppage, warning signs, guiding lights should be increased and other effective temporary remedy measures should be adopted to reduce adverse impact caused by construction to traffic safety. 4.5 In case of injury, call 120 immediately for first aid and report to head quarter soon. 4.6 In case cables are damaged, report should be made to headquarter immediately and headquarter will coordinate with relevant department to solve the problem. 4.7 Call 110 and report to person in charge in case of stolen accident or suspicious person.

5 Attachment 5.1 Terms: “above” includes the said number and” below” does not include in this Plan.

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5.2 Revision of the Plan: the Plan is revised by Urumqi Heating Energy Company and submitted to Urumqi Government for approval. 5.3 Explanation of the Plan: Urumqi Heating Energy Company is responsible for explanation. 5.4 Implementation time: since the date of issuing the Plan.

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