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Download 555.45 KB Environmental and Social Safeguards Compliance Audit (and Corrective Action Plan) November 2011 PRC: Municipal Water Distribution Infrastructure Development Project Changsha (China Water Affairs) Company Limited Prepared by China Water Affairs Group Limited for the Asian Development Bank (ADB) This report has been submitted to ADB by China Water Affairs Group Limited and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB. Changsha (China Water Affairs) Company Limited November 2011 Environmental and Social Safeguards Compliance Audit (and Corrective Action Plan) China Water Affairs Group Limited 1 ESMS AUDIT REPORT Document Number: ESMS/NINGXIANG/BP-AP/V1.0/01112011 Topic: Environmental and Social Safeguards Compliance Audit (And Corrective Action Plan) Written and Prepared by ESMS Supervisor: Wen, Wei Verified and Approved by ESMS Manager: Li, Xingping Approved by Executive General Manager: Liu, Yong ESMS Committee Representative: Chan, Jacky Contact Persons: Li, Xing Ping (ESMS Manager/ Deputy General Manager) Email: [email protected] Fax: +86 0755 33362493 (Office) Telephone: +86 0755 33360255 (Office) 2 ABBREVIATIONS ADB – Asian Development Bank AP – Affected People by the Project CAP – Corrective Action Plan abbreviations CWA – China Water Affairs Group Limited WP – Water Plant DRC – Development and Reform Commission EIA – Environmental Impact Assessment EPB – Environment Protection Bureau IPS – Intermediate Pressure Station IR – Involuntary Settlement IP – Indigenous People LA – Land Acquisition MWR – Ministry of Water Resource LRB – Land Resource Bureau PRC – People’s Republic of China RMB – The lawful currency of the PRC RWEP – Raw Water Extraction Point SPS – ADB’s Safeguards Policy Statement (2009) SR – ADB’s Safeguard Requirements SSD – Shanghai Silver Dragon Investment Limited 3 CONTENTS I. INTRODUCTION ....................................................................................................... 4 A. Project Overviews ................................................................................................ 4 B. Objectives of the Report ....................................................................................... 6 C. Methodology ........................................................................................................ 6 II. AUDIT FINDINGS .................................................................................................... 7 A. Past and Present Related Safeguards Issues ......................................................... 7 i. Environment.................................................................................................. 7 ii. Involuntary Resettlement ............................................................................. 9 iii. The Indigenous Peoples ............................................................................ 15 B. Other Social Matters........................................................................................... 15 i. Sustainable Development ........................................................................... 15 ii. Gender and Employment ........................................................................... 16 iii. Labor and Community Health and Safety ................................................ 17 III. CONCLUSION AND RECOMMENDATIONS .................................................... 18 A. Conclusion ......................................................................................................... 18 B. Recommendations and Corrective Action Plan .................................................. 19 ANNEX Annex 1………………………………………………………………………...….20 Annex 2………..………………………………………………………….……….22 Annex 3…..……………….……………………………………………………….23 Annex 4…..……………………………………………………………….……….25 Annex 5……………………………………………………………………………28 4 I. INTRODUCTION A. Project Overviews i. Changsha (China Water Affairs) Company Limited (“Project Company”), a subsidiary China Water Affairs Group Ltd. (“CWA”), was acquired by CWA in February of the 2009 from Ming Xing Waterworks Holdings Ltd.1.The proposed New Project, located in the Ningxiang County, City of Changsha in Hunan Province (Figure_1), is being controlled by the CWA as CWA owns 90% shares of the Project Company. Figure 1 - Project Location (Ningxiang County) on the Map of China ii. Background and New Project Necessity: the Ningxiang County, located in the center of Hunan Province, has a population over 200,000 and covers land areas approximate 20km2. (a) Prior to 2009, it has 4 water plants (“WPs”) including the No.1, 2, 3 and Phase I of the No. 4 WP. The No.1 and No.2 WPs were constructed in the early 1980th has a total water distribution capacity of 11,000m3/day. Since the underground water, which were heavily contaminated in last decade, was the only channel used to provide raw water to No.1 and No.2 WPs, making two WPs no longer capable to provide reliable tap water. Thus both of them were abandoned in the year of 1998 1 Ming Xing Waterworks Holdings Ltd. – the former investor who privatized Ningxiang Water Supply Authority- a division under Municipal Ministry of Water Resource. 5 and 2000 respectively. The WP’s that currently under operation are the No.3 WP, built in 1997, has distribution capacity of 40,000m3/day, as well as No.4 WP (Phase I), built in 2006, that has capacity of 40,000m3/day. Besides, 2 intermediate pressure stations (“IPS”) with total handling capacity of 15,000m3/day, were built in 1995 and 1998 for boosting distribution pressure in water supplies system. (b) Under accelerated development in the Ningxiang County, especially the rapid expansion of its development zones (Economic Development Zone and Jinzhou Development Zone) in recent years, issues associated with the water distribution such as inadequate water volume and pressure have been arisen more frequently. According to “Ningxiang County General Planning for2000-2020”, It presents that water demand in Ningxiang County would reach 120,000m3/day by 2012 and over 200,000m3/day by 2020. (c) To overcome such issues presented, the Project Company has submitted a project application to government authorities in 2009, requesting to develop No.4 WP (Phase II) construction for doubling the daily distribution capacity of No.4 WP to 80,000 m3/day (additional 40,000m3/day on top of Phase I) as well as to construct new IPS’s for raising pressure in distribution system. (d) Institute of Changsha Environmental Science Research was hired by Project Company and composed “Environmental Impact Assessment for No.4 Water Plant in the Ningxiang County”, which has been approved by Changsha Municipal Environment Protection Bureau subsequently. Consulting Division from University of Hunan Province was hired to do “Feasibility Study regarding No.4 Water Plant and Associate Distribution Pipeline Construction in Ningxiang County, which has been approved by Changsha Municipal Development Reform Commission. Related construction was started in the early 2010. iii. New Project Breakdown: (a) No.4 WP Phase II construction would raise distribution capacity of No.4 WP from 40,000m3/day to 80,000m3/day, involving facility constructions of flocculation/ sedimentation tank, clarification tank, and filtration tank. (b) For further water quality improvement, the Project Company plan to construct a deep disinfection processing compartment, utilizing cutting-edge technologies such as ozone and activated carbon disinfection methodologies. (c) The new IPS construction, with capacity of 50,000m3/day, would provide extra pressure into water distribution system. 6 Figure 2 - Project Site (No.3 and No.4 Water Plants) iv. Percentage of New Project’s Accomplishment: Until December 2011, construction of No.4 WP Phase II and new ISP are approaching the final inspection stage; the construction of deep disinfection processing compartment will be started promptly upon the confirmation of the ADB’s funding (Annex1). The Project Company decides to apply the ADB facility, accounted for approximate 68.4% of the total investment, for settling the rest of the payables including partial unsettled payment for recent completed construction as well as the new construction of the deep processing compartment. B. Objectives of the Report: i. This Compliance Audit Report is being prepared to comply with the 2009 ADB’s SPS, including Safeguards Requirement and aims to identify past and present concerns from the production and business activities of Project Company that related to impacts on environment, involuntary resettlement (physical or economic displacement) and ethnic/ indigenous people, determines whether actions were in accordance with ADB’s SR1, SR2, SR3 principals, requirements and prepare a Corrective Action Plan (“CAP”) containing necessary remedial actions, approximate budget and time frame for resolution of any noncompliance. C. Methodology Four (4) experts from the ESMS committee from the Shenzhen China head-office of CWA have been sent to cooperate along with colleagues in local Project Company and conducted a series of investigation and verification, specific methodologies including: i. Review of documents which shall all conform to “the Environmental Protection Law of the People’s Republic of China”, and other relevant documents: (a) “Feasibility Study for No.4 Water Plant and Associate Distribution Pipeline Construction for 7 Ningxiang County” prepared by Consulting Division from University of Hunan Province in February 2009; (b)“Environmental
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