Inner Mongolia Autonomous Region Environment Improvement Project

Environmental Monitoring Report

Project Number: 40634-013 April 2017

PRC: Inner Mongolia Autonomous Region Environment Improvement Project

Prepared by Inner Mongolia Project Management Office and Energy and Environment Development Research Center

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

This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in

this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Environmental Monitoring Report (July – Dec. 2016)

Project Number: Loan_No.2658-PRC April 2017

PRC: Inner Mongolia Autonomous Region Environmental Improvement Project (Phase II)

Submit by: Inner Mongolia Autonomous Region PMO Prepared by: Energy and Environmental Development Research Center

The Project Leading Group Office of the ADB Loan Inner Mongolia Autonomous Region GovernmentThe views expressed submitted herein the are report those to ofthe the ADB, consultant and issued and do in not accordance necessarily withrepresent the ADB's those of ADB’s Environmentalmembers, Board Safeguard of Directors, Policies Management, (2009). or This staff, report and may may be not preliminary reflect the in nature. views of ADB. Note that the "Terms of Use" section of this chapter.

CONTENTS I. INTRODUCTION 1 A. Report Purpose and Rationale 1 B. Project Components and Implementation Progress 1 II. RESPONSIBILITIES OF ENVIRONMENTAL MANAGEMENT INSTITUTIONS AND IMPLEMENTATION STATUS 5 A. Environmental Management Institutions and the Responsibilities 5 B. Arrangement on Environmental Requirements in Project Contract 7 III. COMPLIANCEOF PROJECT ENVIRONMENTAL COVENANTS 9 IV. IMPLEMENTATION OF ENVIRONMENTAL MITIGATION MEASURES AND COMPENSATION MEASURES 10 V. ENVIRONMENTAL MONITORING RESULT CONCLUSIONS 39 A. Monitoring plan and responsibilities 39 B. Monitoring result conclusion 43 VI. CURRENT SITUATION OF SMALL BOILERS 54 A. Hohhot Heating Network and Boiler Room Expansion Project 54 B. Baotou City Central Heating Expansion Project 58 C. Chifeng Urban Central Heating Pipe Network Expansion Project 62 D. Xingan Meng Zhalaiteqi Inder Town Central Heating Project 65 E. Xingan Meng Tuquan Heating Expansion Project 67 F. Xingan Meng Arxan Yi'ershi “coal-to-wood”Central Heating Project Phase I 69 VII. PUBLIC CONSULTATION 72 VIII TRAINING AND INSTITUTIONALSTRENGTHENING 76 IX KEY ENVIRONMENTAL ISSUES 79 X. CONCLUSIONS AND SUGGESTIONS 80

I. INTRODUCTION

A. Report Purpose and Rationale

EMP is very important, as an unnecessary part of Environmental Impact Assessment (EIA) report, proposes the necessary and appropriate mitigation measures, institution arrangements and environmental monitoring requirements for each phase of the project. It aims to monitor and ensure: (i) the requirements in accordance with environmental regulations; (ii) reduce potential adverse environmental impacts; (iii) implementation of environmental protection promise. To ensure the continuous implementation and improvement of EMP during project construction and operation, the project executing agency (EA) is required to compile the semi-annual environmental progress report, to describe the EMP implementation, environmental compliance and the improved measures. The reporting period of this report is from July to December 2016.

B. Project Components and Implementation Progress

The project components include 7 components: Hohhot, Baotou, Chifeng City, Harqin Banner, Xingan Meng Zhalaiteqi and Keyouqianqi central heating projects and Xingan Meng Keyouqianqi gas projects. The overall structure of this project has been changed when some subprojects quitted and local municipalities applied adjustments. In July 2013, Asian Development Bank (ADB) agreed the adjustments after the assessment of an ADB Review Mission. The two heating projects of original Harqin Banner and Keyouqianqi and gas project of Keyouqianqi applied to quit the project, increased three new heating components of Xingan Meng Arxan City, Tuquan County, and Chifeng City Wngniuteqi.

The project intends to change in July 2016: the cancellation Wengniuteqi component, new second heat source plant expansion project in Xingan Meng Zhalaiteqi and Hohhot heating network and boiler room expansion project.

The objective of this project is to improve the living environment of Hohhot, Baotou, Chifeng and Xiangan Meng (Zhalaiteqi Inder Town, Tuquan County, Arxan Yi'ershi Town) and improve the institutional management capacity. The long-term and overall objectives of this project do not change in spite of somewhat adjustment.

The project total investment is about $3.6831 billion, of which using the ADB loan of $150 million, the remaining funds (about $2.1831 billion) are from the municipal government budget and domestic commercial loans. The ADB loan will be used for construction, equipment, consulting services, training, construction period interest and finance charges, the government will provide the cost of land acquisition and resettlement, taxes and contingencies. The project implementation period is five years, from 2010 to 2014. According to the actual situation of the project, the loan closing date has been adjusted to Dec. 31 2017. The proposed project consists of four prefecture-level cities (Meng) in seven cities and towns of seven sub-projects, including Chifeng Wengniuteqi decided to quit. See the component description and implementation progress (by the end of December 2016) in the below table (Table 1).

Table 1: Subprojects Implementation Progress Subprojects Description of Outputs Implementation Progress Hohhot (i) Extension of 4 boiler rooms (rely on the bridge area G zone, Zhaojun village area F zone, Tuanjie community E Completed coal-to-gas: one unit of zone, Nama Temple M zone), 1×29MW+2×46MW; and two units of 1×29MW, laying Hohhot heating capacity expansion of boiler the class I and class II pipe network about 16800 network and room (one unit of 3 × 58MW, 2 meters (about 8400 meters pipe groove); updating 95 boiler room units of 3 × 29MW and one sets of heat exchanger units and ancillary equipment; expansion unit of 1 4 × 29MW) and new construction of two sets of dedusting project ancillary facilities; desulfurization facilities in the Unite community Heat (ii) New Class I pipeline of source plant; new construction of one set of dry coal 41.13km, 303 km of pipe shed in the Unite community heat source plant. network transformation; (iii) 94 thermal stations; (iv) Close 144 small boilers. Baotou (i) New heating pipes of 4. (ii) Transformation of 7 heating pipelines. (iii) New 54 thermal stations. (iv) The transformation of the old Baotou central thermal stations 251, and Project includes four packages (international bidding), heating expansion of existing schedule all have been purchased and implemented. Project expansion and monitoring system. was put into operation in 2013. Project (v) Transformation of 2 plants heat circulation pump, increase frequency control devices. (vi) Close 164 small boilers. Chifeng (i) Construction scale is the new heating area of 24.20 million m2; (ii) New heating pipe network of Completed the Class I heating pipe network is Chifeng central 91.3km; 32.875km, completed the program of 36%, new heating network (iii) 118 thermal stations, construction of 43 heat exchanger stations, renovation expansion transformation of 76 thermal of 28 heat exchanger stations, and new construction of project stations; 1 thermal network control center. (iv) The new heating network control center; (v) Close 37 small boilers.

Subprojects Description of Outputs Implementation Progress

(i) 2 New boilers, capacity Chifeng 92x4=368 (MW). Wengniuteqi (ii) 15 thermal stations. Project taken out. Wudan central (iii) 7.4 km of Heating pipeline. heating project

Xingan Meng Xingan Meng Zhalaiteqi Inder Town Central Heating Project (hereinafter referred to as First Heat) (i) new 4×29MW chain grate First Heat stoker boiler, (i) The project contains five packages, three international (ii) new Class I hot water pipe packages (two goods, a civil engineering) and two network of 9.252km (tube domestic packages (goods, a civil engineering), length), purchase has been completed. 1 boiler room and four (iii) 20 thermal stations (27 units), heat transfer stations and pipelines have been built (iv) Close 31 small boilers. and put into operation. Xingan Meng

Zhalaiteqi New Second Heat Source Plant Second Heat Inder Town Expansion Project in Xingan (ii) The project has completed the construction design Central Meng Zhalaiteqi (hereinafter and construction figure review, using its own funds to Heating referred to as Second Heat) complete the heat source plant construction, complete Project (v) Heat source plant: build a new 1 unit of 29MW and one unit of 58MW chain grate hot 3 x 58 + 1 x 29 MW chain water boiler and ancillary equipment procurement and discharge hot water boiler installation, there are 2 unit of 58MW chain grate hot room. water boiler and ancillary equipment, 22 thermal (vi) Pipe network: build new Class stations, boiler room power distribution systems, heat I hot water pipe network of plant computer control system needs to use the ADB 14.6km (tube length). loan purchase for construction. (vii) new 22 thermal sub-stations (32 units). (viii) Close 27 small boilers.

(i) new 2×52.5 MW hot water boiler; (ii) one unit of 4 × 20MW absorption heat pump station; The main plant building is completed, the equipment Xingan Meng (iii) 24.7km of heating pipeline, order is completed, and installation in succession, Tuquan Heating 11.07km of integrated planning to complete the installment before heating, Expansion management ditch; and put into operation, laying heating pipe network has Project (iv) 13 thermal stations; been basically completed. (v) the corresponding ancillary works; (vi) Close 33 small boilers.

Subprojects Description of Outputs Implementation Progress (i) Construction scale is the new heating area of 0.615 million m2, Xingan Meng (ii) new 3×14MW boiler room, The main plant building is completed, the equipment Arxan Yi'ershi (iii) 13.998km of heating pipe order is completed, and installation in succession, “coal-to- network, 6.994km of planning to complete the installment before heating, wood”Central integrated management ditch; and put into operation, laying heating pipe network has Heating Project (iv) 13 thermal stations; been basically completed. Phase I (v) the corresponding ancillary works; (vi) Close 39 small boilers.

II. RESPONSIBILITIES OF ENVIRONMENTAL MANAGEMENT INSTITUTIONS AND IMPLEMENTATION STATUS

A. Environmental Management Institutions and the Responsibilities

GIMAR is the EA of this project. And GIMAR has set up a project leading group, responsible for providing policy guidance and overall coordination in the implementation period of the project. Also, it has established a project management office (hereinafter called PMO) on behalf of the government, which is responsible for coordinating the implementation of project activities. PMO is responsible for the overall implementation of EMP. A qualified environmental official has been appointed in order to effectively manage all the activities in the EMP.

Each of the IAs has set up an environmental management team, including a leadership and the appropriate number of personnel, to coordinate the environmental problems with contractors, construction supervision companies and IMPMO. The environmental management group will get technical support of environmental expert, and accept the supervision of the local environmental protection bureau. The environmental engineers of construction supervision companies entrusted by each IA are responsible for the daily inspection, construction site supervision and assessment of mitigation measures.

Contractors are responsible for the implementation of the mitigation measures and monitoring under the support of construction supervision companies in accordance with the principle of EMP; and IAs is responsible for the implementation of mitigation measures and monitoring in the operation period.

The local Environmental Protection Bureau and the environmental monitoring station of each subproject will supervise the implementation and effectiveness of environmental protection measures by random monitoring, on-site inspection, to make construction projects comply with environmental standards and regulations in China. On behalf of the local environmental protection bureau, Environmental monitoring station will monitor and inspect the environmental situation, in accordance with the Chinese regulation. The local environmental protection bureau and environmental monitoring station will provide opinions and suggestions from time to time. ADB is responsible for overall environmental performance supervision project. ADB will also publish the project monitoring report on its website. ADB will review the semi-annual environmental progress report submitted by IMPMO and due diligence of the project during the inspection of environmental problems. If the EA and IA could not satisfy the requirements of environmental initial examination and safety policy, ADB will require corrective measures and inform the EA (IMPMO) to take follow-up action. According to the above arrangements, the environmental management responsibilities of each agency are formulated, to ensure implementation of the requirements of EMP. Institutional arrangements and responsibilities formulation positively respond to requirement of the Project Agreement and regulations of the EMP, in full compliance with the EIA report described during the preparation of the project.

The chart of environmental management institution of the project is shown in Figure 1. And responsibilities of each environmental management institution are shown in Table 2.

GIMAR

ADB IMPMO (Executing Agency)

EED Environmental Consulting Protection Team Bureau

Project Project Project Project Coordination Monitoring Xingan Station Coordination Coordination Coordination Office of Office of Hohhot Office of Baotou Office of Chifeng Meng Prefecture

Futai Baotou Fulong Xingyang Xingda Xinguang Xinguang (PIA) (PIA) (PIA) (Propose (PIA) (PIA) (PIA) to exit)

Supervision Contractors Company

legendsupervision coordination cooperation consultation and feedback

Figure1: Environmental Management Institutions of IMAR

Table 2: Responsibilities of Environmental Management Institutions of IMAR Name of Main Responsibilities Institutions Project Leading To provide guidance and policy guidance during the implementation of the Group project in the project; to review progress in the implementation of the project and to take additional measures if necessary. ADB To supervise the overall project environmental performance, review semi- annual environmental progress report, announce project monitoring report on the ADB website, due diligence of environmental problems during the inspection items. IMPMO To entirely implement the EMP with the support of the consulting experts and IAs, to coordinate with the Inner Mongolia Department of Finance, IAs, contractors, tendering company, consulting experts and other governmental authorities. PIAs To establish environmental management group, provide supervision to the construction supervision company, to submit monthly report to IMPMO, to cooperate with design institute and the Tendering Company, to prepare tender documents, ensure the inclusion of environmental protection clause. Local According to environmental management and monitoring plan, to start the Environmental regular and random monitoring and on-site inspection in construction Protection Bureau period and operation period, supervising implementation and effectiveness and Monitoring of the environmental regulation measures, make construction projects Station comply with environmental standards and regulations in China, and discharge standards, regularly or irregularly provide opinions and suggestions. Supervision Responsible for daily inspection, each construction site supervision and Company assessment of mitigation measures.

Environmental For the implementation of EMP, to provide technical guidance for IMPMO Specialists and the PIAs; to provide training for the PMO, IAs and construction supervision company. To help the PMO prepare the environment semi- annual progress.

B. Arrangement on Environmental Requirements in Project Contract

According to the Project Agreement, safeguard policy and monitoring actions in EMP are required in the tender documents as the terms the contractor must pledge to implement and would be incorporated into the civil contract for each program.

Table 3: Each Component Environmental Requirements in the Contractual Arrangements Component Biidding Documents Contract Hohhot Heating Network and Incorporate into the safeguard Incorporate into the safeguard Boiler Room Expansion Project policy and monitoring actions in policy and monitoring actions in EMP EMP Baotou City Central Heating Incorporate into the safeguard Incorporate into the safeguard Expansion Project policy and monitoring actions in policy and monitoring actions in EMP EMP Chifeng Urban Central Heating Incorporate into the safeguard Incorporate into the safeguard Pipe Network Expansion policy and monitoring actions in policy and monitoring actions in Project EMP EMP Incorporate into the safeguard Incorporate into the safeguard Xingan Meng Zhalaiteqi Inder policy and monitoring actions in policy and monitoring actions in Town Central Heating Project EMP EMP Incorporate into the safeguard Incorporate into the safeguard Xingan Meng Tuquan Heating policy and monitoring actions in policy and monitoring actions in Expansion Project EMP EMP Xingan Meng Arxan Yi'ershi Incorporate into the safeguard Incorporate into the safeguard “coal-to-wood”Central Heating policy and monitoring actions in policy and monitoring actions in Project Phase I EMP EMP

III. COMPLIANCEOF PROJECT ENVIRONMENTAL COVENANTS

The environmental covenants of the project in EMP have been or are about to perform. The implementation performance is shown in Table 4.

Table 4: Implementation of the Project Environmental Covenants Implementation Covenants of the project correlated to EMP Reference Performance Safeguard Policy GIMAR should ensure that the owners (i) according to the national and local environmental laws, regulations, The 10th procedures, and guidelines; and (ii) according to paragraph of In the implementing Environmental Policy Safeguard Policy (2009) and the Execution of process Environmental Assessment Guidelines (2003) to design, Project. construct and operate the project. The constructed boilers in the project should achieve the The 10th prescribed standards for pollutants discharge of Word Bank paragraph of In the implementing Pollution Prevention and Abatement Handbook (1998, Execution of process Washington, DC). Project. Lagging behind, submitted a revised version of the The 10th During the construction period of the project, submit two Environmental Progress paragraph of environmental progress reports annually and submit one Report on July 3, 2016. Execution of report every two years in the operation period. So far, this report is the Project. second Environmental Progress Report. According to the due diligence report of The EMP in IEE (including mitigation measures, monitoring The 10th Zhalaiteqi new plan and institutional arrangements) should be updated in the paragraph of subprojects and Hohhot project planning stage, in accordance with the tender Execution of coal-to-gas project, documents and construction contract. Project. "Environmental Management Plan" was revised. The 4th GIMAR should ensure owners close 383 small coal-fired paragraph of In the implementing boilers in the subprojects region, and further confirm these Execution of process small coal-fired boilers would not be reused in other places. Project. Each of the subproject owners need to establish a security Item 44 of VIII department, to coordinate environmental and management In the implementing Chapter B in issues of immigration during construction and operation process EMP periods.

IV. IMPLEMENTATION OF ENVIRONMENTAL MITIGATION MEASURES AND COMPENSATION MEASURES

As shown in Table 1, "Subproject Implementation Progress," until the submittal date of the report, each subproject of the civil works has been started. Xingan Meng Zhalaiteqi Inder Town Central Heating Project- First Heat and Baotou Central Heating Expansion Project have been completed and are in the good condition of operation. The remaining subprojects are under construction.

Table 5: Each Subproject Civil Engineering Progress and Implementation of Environmental Mitigation Measures and Compensation Measures (up to December 2016) Implementation of Environmental Mitigation Subproject Civil Engineering Progress Measures and Compensation Measures (i) Complete the coal-to-gas boiler room: one unit of 1×29MW+2×46MW, two units of 1×29MW (ii) Laying the class I and class II pipe network about 16800 meters (about 8400 meters pipe Hohhot Heating Network groove); updating 95 sets of heat and Boiler Room Complied with exchanger units and ancillary Expansion Project equipment; new construction of two sets of dedusting desulfurization facilities in the Unite community Heat source plant; new construction of one set of dry coal shed in the Unite community heat source plant. Baotou City Central Heating Expansion Basically completed Complied with Project Completed the Class I heating pipe network is 32.875km, completed the Chifeng Urban Central program of 36%, new construction of Heating Pipe Network 43 heat exchanger stations, Complied with Expansion Project renovation of 28 heat exchanger stations, and new construction of 1 thermal network control center. First Heat: one boiler room, 4 thermal stations and total length 10.8km pipe Xingan Meng Zhalaiteqi network were built and put into Inder Town Central operation. Complied with Heating Project Second Heat: The main plant was basically completed, and the boiler being installed. Xingan Meng Tuquan The main plant building is completed, Heating Expansion the equipment order is completed, Complied with Project and installation in succession,

planning to complete the installment before heating, and put into operation, laying heating pipe network has been basically completed. The main plant building is completed, the equipment order is completed, Xingan Meng Arxan and installation in succession, Yi'ershi “coal-to- planning to complete the installment Complied with wood”Central Heating before heating, and put into Project Phase I operation, laying heating pipe network has been basically completed. EMP of this project provides clear content and requirements of environmental management, environmental mitigation measures and compensation measures (see Table 6). According to monitoring information monitored by external monitoring station and site visits of environmental consulting experts, the basic execution of each subproject mitigation measures in Table 6.

Table 6: Summary of Project Potential Impacts, Mitigation Measures and the Implementation of the Present Status (up to December 2016) Types Potential Mitigation Measures and Safeguard Responsible Party Cost Sources Implementation Impacts Policy Estimate Status Implementatio Supervision (CNY, n Party 1000) Party A．Before Construction Subproject Confirm the location of the heat supply plant Design IMPMO Included in the location and and heating pipeline route selection, to Institute and design contract Complied with route avoid or minimize the adverse impact on the IAs selection surrounding environment and community. According to research during the preliminary selection, the proposed change the location of the station will be confirmed and designed again, as far as possible away from environmentally sensitive points, such as schools, hospitals, residential buildings. The To all the subprojects, environmental Design IMPMO, IAs, Included in the Complied with Design of mitigation mitigation measures of IEE and domestic Institute Local design contract mitigation measures EIA reports will be incorporated into the Environment measures and engineering design documents and tender al Protection and monitoring documents. It will also be included in the Bureau facilities plans civil construction and equipment installation included in contract documents. engineering All contractors must strictly abide by EMP. design The environmental monitoring plan will be incorporated into the project design, to ensure the environmental impacts and supervise construction and operation activities in accordance with the approval of the EIA reports. Waste and Consider the suitable spoil disposal site in Design Local Included in the spoil disposal engineering design. Institute and Environment design contract Complied with site IAs al Protection

Bureau, IMPMO Preparation Put the mitigation measures of EMP and Design IMPMO, Included in the Complied with Bidding of the tender EIA into the tender and construction Institute and Local design contract and documents contract documents of all the subprojects. IAs Environment contract and contract al Protection signing documents Bureau Complaint Establish In the IA office, it needs to establish project IAs IMPMO , Included in the Complied with settlement operational public complaints department, provide Local business budget mechanis complaint training for department personnel and the Environment of IAs m settlement public and open the department telephone, al Protection mechanism fax and the email address. Bureau B． Construction Phase Soil Soil erosion In the mining ditch and some infrastructure Contractor, IAs, 680 Included Complied with caused by projects, as far as possible to reduce the Construction Local in the construction construction use of active excavation, construction of Supervision Environment contract activities suitable compaction technology. Company al Protection In the rainy and windy day, limit construction Bureau, and material handling activities. IMPMO To restore all the surface damage as soon as possible, after completion of construction site earthwork, not more than 14 days. Plant grass and trees in the heat source plant, to reduce soil erosion as far as possible. Suitable slope or vegetation restoration, such as trench after compaction. Build appropriate temporary construction camp and storage space, as far as possible to reduce the effects of soil erosion and land occupation. Soil pollution After the security and the coverage of the Contractor, IAs, 340 Included Oil and other site of impervious ground, proper storage of Construction Local in the construction hazardous petroleum products, chemicals, and Supervision Environment contract chemicals storage hazardous waste, prevent soil pollution. Company al Protection site is not By adopting the best management Bureau, impermeable

practices, to prevent oil and chemical spills, IMPMO Complied with avoid direct contact with the soil. (except for the Safely clean away all construction waste situation described from the construction site, only in the waste above) disposal sites approved. In the construction site, provide spill cleanup measures and equipment, and require the contractor to leak emergency response procedures and training. Sewage Surface To build sewage interception ditch, prevent Contractor, IAs, 1000 Included Construction period water and the rainwater runoff into the construction Construction Local in the construction of pipe trench groundwater site, construction site drainage runoff from Supervision Environment contract excavation is short, polluted by the drainage system in the existing. Company al Protection and most of them construction In all construction equipment cleaning area, Bureau, are in the urban waste water construct the sewage collection tank and IMPMO areas. The and sewage sedimentation tank. construction site Build sewage treatment and disposal does not set system in the construction site, and provide interception ditch, appropriate maintenance and training. but sandbags for According to the monitoring plan, during the flood control are in construction period, in each sub project city, place playing a monitoring of river water quality parameters sewage is needed bylocal environmental monitoring interception effect. station (SS, COD, Oil). In Inner Mongolia, the rainy season is short and less rainfall, and all the construction period avoid the rainy season. The heat source plant earthwork construction site does not set interception ditch. The river is far

away from the construction site, so the river water quality is not monitored during the construction. Noise Noise from Ensure the noise level from the equipment Contractor, IAs, 1000 Included Complied with the and machinery in accordance with the Construction IMPMO, in the construction applicable national standards, and maintain Supervision Local construction machinery the machines, as far as possible to reduce Company Environment contract operation noise. al Protection and Bureau transportatio Use the noise abatement device or method n activities in piling equipment operation in the 500 meters away from the field with sensitive points (such as schools, hospitals and residential areas). No rock crushing, concrete mixing and similar activities within 1km radius of sensitive areas.

In order to reduce the noise at night, to limit the high noise of mechanical operation.

In the construction activities of the notice, take the inclusion of noise into considerations. Public complaints resolution information processing program.

When necessary, during the construction, the noise source could be installed around the temporary sound barrier.

Regularly monitor noise sensitive areas. If the noise exceeds the standard, check the construction equipment and construction

conditions and take mitigation measures to improve.

Quarterly visit the construction site nearby residents, to determine whether there is a community complaint about noise, for the community residents to reduce noise intrusion suggestions. Noise Noise from Installation of equipment, sound insulation Equipment Local 1400 Included in the Complied with heat source barrier or sound insulation cover, to reduce supply and Environment equipment supply plant ( Coal, noise. installation al Protection and installation fan, air Plant green belt around the heat source contractor, Bureau, contract compressor plant, further reducing noise. IAs IMPMO, and water Install sound insulation cover and double Environment pump) window. al Monitoring Install sound insulation cover for boiler and Station fan and sound insulation cover for the Consulting motor, to reduce noise. company Noise from Install sound insulation cover and double Equipment Local 1500 Included in the Complied with HES window. supply and Environment equipment supply Maintain the pump and other equipment installation al Protection and installation from time to time, as far as possible to contractor, Bureau contract reduce noise. IAs IMPMO Vibration Vibration of No vibration operation at night (such as Contractor, IAs, Included Complied with compaction compaction, trench piling and road rolling Construction IMPMO, in the and rolling operation etc.) Supervision Local construction production Company Environment contract al Protection Bureau Gas Dust from the If there is dust on the construction site, use Contractor, IAs, 850 Included Complied with construction handling route sprinkler. Construction IMPMO, in the construction activities Pay special attention to sensitive points Supervision Local contract near the dust, such as hospitals or schools, Company Environment residential area. al Protection Cover the transport vehicle, especially fine Bureau particulate material in order to avoid falling

or generate dust. The storage of oil or other hazardous substances in suitable locations and coverage, as far as possible to reduce dust. Atmospheric Ensure that the equipment complies with Contractor, IAs, 800 Included Complied with emissions the relevant national standards for Construction Local in the from vehicles emissions. Supervision Environment construction and On vehicles and construction machinery for Company al Protection contract construction high standards to ensure efficient operation Bureau, equipment and maintenance, fuel combustion, and in IMPMO accordance with Chinese emission standards. Solid waste Solid waste Waste water from temporary storage or Contractor, IAs, Local 900 Included Complied with by other environmentally sensitive areas, Construction Environment in the construction regularly transported to landfill or approved Supervision al Protection construction activities by the designated dumping site. Company Bureau, contract Provide appropriate waste in the IMPMO construction site storage container. Hire a qualified contractor, in accordance with the appropriate internal procedures, and transport all waste to the construction site from the approved disposal site. At the end of the construction, the contractor will be responsible for the construction site of the residue materials, waste and contaminated soil removal and disposal right. After these substances were removed, start pavement or planting as soon as possible, to protect and stabilize the soil. Prohibit the burning of waste in the construction site nearby. Hazardous Formulate and implement hazardous Contractor, IAs, Local 420 Included Complied with substances substances and pollution treatment and Construction Environment in the construction and disposal plan of building materials, including Supervision al Protection contract pollutants by leakage prevention and emergency plan. Company Bureau,

construction Storage facilities, fuel oil and other IMPMO activities hazardous substances should be located in a safe area of impervious surface, and is equipped with a cofferdam and cleaning device. Vehicles and equipment should be placed in the designated area, to prevent soil and surface water pollution. The proper maintenance and fuel for vehicles, machinery and equipment, so that the material will not spill into the soil.

Fuel supply contractors must have appropriate qualifications. They must comply with the fuel transport protocol and dangerous or hazardous goods transport and handling Regulations (JT 3145F1). Small boilers Before the demolition of small boilers, under 300 Complied with sites the supervision of the local environmental protection bureau, the IAs and local environmental monitoring station should investigate the small boilers. The evaluation includes soil, groundwater, and surface water structures (if nearby pollution).

If the environment is polluted, the bank must refer to the construction and demolition of the environment, health and safety guidelines, formulate the site recovery plan, and supervision in the local environmental protection bureau by the implementing agencies to follow up. After the approval of the Municipal Environmental Protection Bureau, the municipal landfill or special construction and

demolition landfill disposal of demolition waste. Strictly prohibit the wastes in the river or other water disposal. Animals Vegetation Protect the existing vegetation in the area Contractor, IAs, 220 Included Complied with and plants protection, without construction and take temporary Construction Local in the the measures to protect the vegetation in the Supervision Environment construction destruction of area under construction activities in future. Company al Protection contract the Conduct trench backfill and compaction and Bureau, vegetation proper re planting, after thermal pipeline IMPMO restoration laying. area; Protect the existing trees and grass during planting and construction. If you have to remove trees or compensator destroy the grass, restore the vegetation at y planting the end of the construction. and grass. In accordance with the regulations for Chinese forestry, affected trees and vegetation, is the same or greater compensatory planting area. Community Traffic In the construction project, the contractor Contractor, IAs, 660 Included Complied with intrusion congestion should consider the impact on traffic. Construction Local Traffic in the construction and and Formulate the traffic control and operation Supervision Bureau, contract security accidents, plan, and get agreement by the local traffic Company IMPMO impacting management departments, before public commencement of construction. facilities. Plan for the construction activities, as far as possible to reduce the service of public facilities infestation. Open the information of the project and let the affected people understand the construction activities and services of public facilities caused by infestation. Make a plan before the construction of temporary land use, as far as possible to reduce the impact of. After construction, restore to the original state area.

Take safety measures in the construction site, to protect the public, including warning signs, warning the public security risk, potential barrier, organization of public access to the construction site. Occupation Health Identify and minimize potential risk factors Contractor, IAs, 600 Included Complied with al health damage and caused by the workers. Construction Local in the and safety accidents Provide preventive and protective Supervision Environment construction caused by measures, including dangerous conditions Company al Protection contract construction improvement, replacement or elimination. Bureau, activities Provide personal protective equipment IMPMO suitable for workers, as far as possible to reduce the risk, including the earmuffs, safety helmet and safety boots. Provide adequate safety protection equipment, including fire control system. Provide adequate identification in hazardous areas. According to construction site noise standard of China (GB125232011) and international guidelines, provide exposure limit in high noise or high temperature working environment program. Provide training for workers, develop appropriate incentive measures to comply with health and safety procedures, the use of personal protective equipment. Provide training for workers on storage, handling and disposal of hazardous wastes. For the occupation accidents and diseases, provide recording and reporting procedures. Provide emergency response arrangements. Held a security meeting before the appointment of each class. Cultural In accordance with the China regulations, Contractor, IAs, 90 If the cultural Complied with

heritage strictly prohibit site destruction, concealment Construction IMPMO relics were found, resources or hinder. Supervision direct If new sites are discovered, you must Company compensation to immediately stop the construction, the contractor immediately notify the implementation comes from mechanism and the local cultural relics special funds for bureau.Only after the thorough investigation the protection of and obtaining license of the relevant cultural heritage. institutions, resume construction. Subtotal 11060 C Operation Phase Air quality Need to To start emission test and acceptance of Environmental Local 150 Included Currently, only the monitor environmental protection and correct Monitoring Environment in the operation construction of emissions continuous emission monitoring system. Station al Protection budget of IAs Zhalaiteqi and ensure Bureau subproject of the compliance heat source plant is completed.

Complied with Need to Proper operation and maintenance of IAs Local 3000 Currently, only the control the air emission control facilities (desulfurization, Environment construction of pollution from denitrification and dust removal al Protection Zhalaiteqi the heat equipments). Bureau subproject of the source plants Properly operate and maintain continuous heat source plant is emission monitoring system. completed.

Complied with From coal Use coal unloading sprinkler during IAs Local 2200 Included Complied with dust and ash transport and road dust suppression. Environment in the operation treatment Spray water in the coal heap, especially a al Protection budget of IAs windy day. In accordance with the Bureau requirements of coal heap compaction, as far as possible to reduce the possibility of spontaneous combustion air into, and the loss of volatile substances. The ash transported from the heat source to

the building materials factory users when using closed trucks or on the ash covered. Noise Noise from The heat source plant and heat exchange IAs Local 10 Included in the Complied with coal, fan, air station will have appropriate building Environment operation budget compressor insulation, to avoid noise pollution. al Protection of IAs and water The implementation of restricted access, Bureau pump, provide personal protective equipment for impacting the high noise areas of workers, such as listening earmuffs and earplugs. Solid Flying ash Fly ash and slag all will be at the scene of IAs Local 300 Included Complied with Waste and slag the temporary storage, and then transported Environment in the operation without to the local building materials factory, as al Protection budget of IAs appropriate building material or road materials. Bureau management Do not allow for permanent disposal of fly may affect ash in the field. soil and All the dismantling of waste will have water quality. appropriate qualifications waste management company for regular collection and reuse (such as equipment, steel and other metals; recycled wood and building Removal of materials, etc.) or in the allowable waste the boilers facilities for final disposal (such as non without recyclable materials). In consultation with proper local authorities, conduct the waste management management. , may affect The landfill and waste incineration in the the soil, air demolition site are not allowed. and water. In consultation with the local environmental protection bureau, on-site pollution investigation, if necessary, will make specific plans to solve on-site pollution. Soil contamination will be transported to the approved sites, providing clean filling. According to the suitability of the future, restore the scene. The local environmental protection bureau will approve a recovery

plan, and if necessary for recovery. The stove owners would get waste management services if they selected to remove the household coal stove. Sewage Water The heat source plant sewage treatment IAs Local 1330 Included Complied with pollution and and reuse will be in heat source plant. Environment in the operation reuse from All heat plant living facilities sewage will be al Protection budget of IAs heat source discharged into the municipal sewage pipe Bureau plant network to meet the relevant standards of the China. The runoff from the heat source plant will be discharged into the sedimentation tank, where possible, sewage will be back to dust. According to the requirements, the sediment in the sedimentation pond will be cleaned and transported to the landfill. For the regional emissions of oily wastewater, it is needed to install oil-water separator before discharging into the sedimentation tank. Collect the site leachate and drainage, and discharged them into the storage tank for water coal storage site. Oily sludge scraping from the treatment process will be collected, and in accordance with the China standard handed over to recovery. From HES Regularly clean sedimentation tank in IAs Local 690 Included Complied with municipal landfill for disposal of sludge and Environment in the equipment sediment. al Protection supply and Bureau, installation Environment contract al Monitoring Station Backwash In each heat exchange station, Equipment Local 670 Included Backwash water water from buildregulation tank and sedimentation tank. supply and Environment in the equipment appears as clean HES Before the backwash water discharging into installation al Protection supply and water according to

the municipal sewage pipe network, conduct contractor, Bureau installation domestic EIA, and pH adjustment and precipitation (SS ≤ 400 IAs IMPMO contract therefore most of mg/L). backwash water of thermal station directly discharged into the municipal pipe network after precipitation. Occupation Occupation Carry out regular inspection of the regional IAs Local 120 Included Complied with al health and heating network, and the defects were Environment in the operation and safety community repaired immediately.During the heat al Protection budget of IAs health and exchange station and heating network, as Bureau, safety much as possible to reduce the intrusion of local Labor the community. Bureau Comply with applicable safety regulations for workers. Removal of Economic Implement labor allocation plan, to comply IAs IMPMO 990 Included Complied with small exchange with applicable laws and regulations China. in the operation boilers budget of IAs C Part of Subtotal (annually) 9460 D. Emissions Mitigation Measures Atmospher Emissions Set up high chimney emissions and reduce Equipment Local and 22476.8 Included Complied with e from heat emissions of a direct impact on the adjacent supply and provincial in the equipment source plant areas. installation Environment supply and Install and operate electrostatic precipitator, contractor, al Protection installation bag filter or other special control equipment, IAs Bureau contract control of particulate emissions. Use desulfurization technology in fluidized bed boiler. For the large circulating fluidized bed boiler, use wet scrubber, further reduce sulfur dioxide emissions. Install continuous emission monitoring equipment in heat source plant chimney, monitoring emissions of sulfur dioxide and soot.

Continuous emission monitoring data will be sent directly to the local and provincial environmental protection bureau. D、Part of the subtotal 22476.8 B、C、D Part of the total 42,996.8

After the implementation of the above measures, the project has not caused any significant environmental impacts. By the end of the reporting period, the implementation of subprojects environmental management plan is considered to be effective and satisfactory.

Consulting environmental experts examined all the subprojects, site management quite well, the photograph of each subproject environmental mitigation measures for the implementation are as follows:

(i) Hohhot Heating Network and Boiler Room Expansion Project

Demolition of Original Small Boilers in Boiler Room Equipment Maintenance System Kaoqiao Area and Maintainer Job Responsibilities

Fire Extinguisher in the Gas Boiler Room Warning Signs in Gas Boiler Room

Gas Boiler in the Kaoqiao Area Disabled but not Removed Coal- Fired Boilers in the Kaoqiao Area (Pollution) (Indoor Cleaning)

Gas Boiler Room in Motor Region Vibration Damping Measures of Wind Casing

Flexible Connection of Fan Gas Leak Detector

Boiler Room Emergency Exit Sign Warning Signs in the Boiler Room

Tuanjie Community Construction Site Ground Moist Construction Site Set Retaining Wall

Construction Site Security and Identification System Secure Channel, Security Signs and Warning Signs

Thermal Stations Vibration Reduction The Secondary Washwater Diversion

(ii) Baotou City Central Heating Expansion Project

Excavation of the Site Set Hard Urban Construction Site Set up a Channel (Completed) Temporary Channel (Completed)

Wastewater Discharge Guide System Soundproof Window in Thermal in Thermal Station Station

(iii) Chifeng Urban Central Heating Pipe Network Expansion Project

Pipe Laying Set up Warning Signs in Construction Site

Construction Workers Wearing Helmets Ground Timely Recovery

Set up Soundproof Window in Thermal Stations Warning Signs in Thermal Stations

(iv) Xingan Meng Zhalaiteqi Inder Town Central Heating Project

First Heat of Heat Source Plant Greening within the First Heat of Hear Source Plant

Warning Signs and Fire Hydrant in First Heat of Hear Source Plant

Desulfurizer in First Heat of Hear Source Plant Bag Filter Modification in First Heat of Hear Source Plant

Coal Storage Yard in First Heat of Hear Source Plant Desulfurization Two Heat New Source of Plant Location

New Heat Source Plant East Side New Heat Source Plant South Side

New Heat Source Plant West Side New Heat Source Plant North Side

(v) Xingan Meng Tuquan Heating Expansion Project

Heat Source Air Filter Factory Heat Plant Environmental Billboards

Heat Source Plant Uses the Same Road Transport Keep Moist Plant Ash and Fly Ash Cement

Construction Site Sprinkler Heat Source Plant Sewage Collection Tank

Construction Site Fire Plug Bag Filter under Construction

Thermal Station Location Thermal Stations Damping Measures

Pipeline Construction Site Removed Small Boiler Room for Temporary Residence

(vi) Xingan Meng Arxan Yi'ershi “coal-to-wood” Central Heating Project Phase I

Heat Source Plant Supplies Spaced Enclosure Alone Transportation Road Hardening

Heat Source Plant Construction Site Network Excavation Set up Dust Screen Environmental Protection Slogan

Construction Staffing with Security Equipment Disable Small Boilers

But each subproject has some common problems, garbage collection and processing, oil and other hazardous chemicals and other staging areas for improvement.

Oil and other hazardous chemicals staging wrong way, should be set up between compliance staging ground well seepage.

Placing of building materials is disorder, it should be pile up by classified; construction waste accumulation, it should be timely removal.

Hot weather, some workers do not wear helmets and other security measures, should strengthen publicity and education, to ensure that workers wear security measures.

Team of consultants and Chifeng Owners Consulting Team of Experts to Inspect the Thermal Stations

V. ENVIRONMENTAL MONITORING RESULT CONCLUSIONS

A. Monitoring plan and responsibilities As part of environmental management plan (see Table 7), environmental monitoring plan include elements such as monitoring parameter, location, frequency, implementer, supervisor, cost and source of funding. Implementation agencies of sub-items are required to earnestly implement all contents of environmental monitoring plan, to facilitate evaluation of: i) the scope of extent of environmental influence; ii) the compliance with relevant laws and regulations; iii) the overall efficiency of environmental monitoring plan. Proper measures would be adopted according to monitoring results.

Table 7 Environmental monitoring plan Estimated Source of Project Parameter Location Frequency Implement By Supervise By cost funding (RMB 1000) A. Construction period Wastewater All Sewage Contractor Implementation 90 Included in mitigation measures construction disposal site, Construction agency contracts with review (sewage field per month supervisor PMO construction collecting tank and supervisor Waste sedimentation basin, water etc) PH、、 SS Oil All Take sample Local PMO 30 Included in construction once a month environmental Local EPA construction field or once a day monitoring contract station Dust mitigation All Per month contractor Implementation 90 Included in measures review construction Construction agency contracts with (water spraying, field and supervisor Local EPA construction coverage of nearby areas PMO supervisor transport vehicles, etc.)maintenance of vehicles and construction facilities SO2、和 NO2 PM Chimney of Environmental Environmental Local EPA 60 Included in the heat source monitoring monitoring facility Air plant during station; installation business implementation contract operation agency PM、 PM10 All Per month Local Local EPA 90 Included in the construction environmental PMO construction sites and monitoring contract sensitive station points SO2、、 NO2 PM Emission online Implementatio Local and 450 Included in the monitoring n agency provincial EPA operation from heat budget of

source plant implementation chimney agency Noise Leq dB A All sensitive Per month: one Local Local EPA 45 Included in the points near day per month; environmental PMO construction construction two samples, monitoring contract sites one taken in station daytime and one taken in nighttime Solid Solid waste Waste Once per year; Local EPA PMO 120 Included in the construction disposal sites after solid construction waste waste disposal contract Dismantles Garbage Small boiler When small Local EPA PMO 100 Implementation of small house boiler house agency boilers dismantles Total 1075 B． Operation Period Heat source SO2, NO2, PM Sample Once per Local Local EPA 45 Included in the plant monitoring by month during monitoring operation emission heat source heating period station budget of plant chimney implementation agency Dust from PM One meter Once per Local Local EPA 30 Included in the Coal and away from month during monitoring operation slag storage heat source heating period station budget of plant implementation agency Safety and Examine regional Heating Once before Implementatio PMO 60 Included in the reliability of heating pipeline pipeline heating period n agency operation heating regularly and repair and once after budget of pipeline the defect heating period implementation immediately agency Noise from Leq dB A One meter Twice per Local Local EPA 60 Included in the heat source away from month during monitoring PMO operation plant heat source heating period station budget of plant implementation agency

Noise from Leq dB A One meter Twice per Local Local EPA 90 Included in the thermal away from month during monitoring Implementation operation station thermal heating period station agency; budget of station PMO implementation agency Wastewater SS、 BOD Emission Once per Implementatio Local EPA; 80 Included in the from point month during n agency PMO operation thermal heating period budget of station implementation agency Wastewater Generation and Thermal Once per Implementatio Local EPA; 20 Included in the and mud discharge volume station month during n agency PMO operation from heating period budget of thermal implementation station agency Total 385 (annually Grand total 1460

B. Monitoring result conclusion

Leading group of ADB project in Inner Mongolia autonomous region government and experts in consulting cooperation reaffirmed the importance of monitoring report and made effective progress. So far, 6 sub-items have been carried out. 1 Project owner commissioned Hohhot Huimin District Environmental monitoring Station on December 22, 2015, because the Desulfurization tower has not been built into operation, the concentration of SO2 emission exceeded the standard, other monitoring results are meet the emission standards, and the concentration of SO2 emission expected to meet the emission standards after the operation of the Desulfurization Tower, will not have a great adverse impact on the environment. The results of monitoring are shown in the table below (Table 8).

Table 8: Atmospheric Monitoring Results

Monitoring Monitoring Monitoring Point Monitoring Result Standard Limit Date Project Location

SO2 1218mg/m3 400 concentration

SO2 emissions 112.45kg/h /

Vertical NO2 190.5mg/m³ 400 Cross-section 2015.10.22 concentration

of Chimneys NO2 emissions 17.58kg/h / Soot 49.8mg/m³ 80 concentration Soot emissions 4.73kg/h /

2 Baotou city central heating renovation and expansion project The owner of this project entrusted Baotou municipal environmental monitoring station to monitor noise of the construction site in the middle of December 2016. The result is appropriate to the standard. No further environmental monitoring has been carried out since then. Further environmental monitoring is suggested to carried out to thermal station. 3 Chifeng downtown central heating network renovation and expansion project The project carried out environmental monitoring to thermal stations of Shangri La, the Songshan third middle school and Hongqiao Lijing, the result see follows (Tables 9, 10, and 11).

Table 9Air monitoring result

Location Date SO2(mg/m³) NO2(mg/m³) TSP(mg/m³) PM10(mg/m³)

Dec. 7, Shangri La 1 0.008 0.013 0.156 0.119 2015

Dec. 0.009 0 .018 0.16 0.123 8,2015 Dec. 7, 0.008 0.016 0.158 0.117 2015 Shangri La 2 Dec. 0.009 0.018 0.161 0.124 8,2015 Dec. 7, 0.008 0.016 0.114 0.121 Songshan third 2015 middle school 1 Dec. 0.009 0.018 0.147 0.152 8,2015 Dec. 7, 0.007 0.014 0.116 0.12 Songshan third 2015 middle school 2 Dec. 0.009 0.016 0.149 0.154 8,2015 Dec. 7, 0.008 0.016 0.113 0.117 Songshan third 2015 middle school 3 Dec. 0.008 0.018 0.147 0.153 8,2015 Dec. 7, 0.008 0.014 0.154 0.12 2015 Hongqiao Lijing 1 Dec. 0.008 0.018 0.159 0.123 8,2015 Dec. 7, 0.007 0.018 0.118 0.121 2015 Hongqiao Lijing2 Dec. 0.008 0.019 0.158 0.163 8,2015 Standard Limit 0.15 0.08 0.3 0.15

PM10 in Songshan third middle school1, 2 and 3 and Hongqiao Lijing 2 exceed the standard limit. The construction has been completed so far, with no more dust emission.

Table 10Noise monitoring result Monitoring results Standard Monitoring Project Monitoring Site [dB（A)] Limits Date Daytime Nighttime 2015/12/7 52.3 48.7 1# 2015/12/8 55.3 47.2 2015/12/7 54.6 45.3 2# 2015/12/8 57.6 45.8 Daytime 2015/12/7 51.7 46.2 60dB； Shangri-La Heating 3# 2015/12/8 54.7 46.2 Station Nighttime 2015/12/7 52.5 47.7 50dB 4# 2015/12/8 55.5 47.5 2015/12/7 47 39.6 5# 2015/12/8 47.6 40.2 6# 2015/12/7 49.7 40.9

2015/12/8 50.3 41.9 2015/12/7 52.9 42.5 7# 2015/12/8 52.1 42.8 2015/12/7 53.8 43.9 8# 2015/12/8 54.2 44 1m away from the 2015/12/7 54.8 53.2 southern boundary of 2015/12/8 56.8 52.6 the project 1m away from the 2015/12/7 53.6 50.1 eastern boundary of 2015/12/8 54.8 49.8 the project 1m away from the 2015/12/7 53.9 51.7 northern boundary of 2015/12/8 55.9 51.9 the project 1m away from the 2015/12/7 54.1 52.1 western boundary of Songshan No.3 2015/12/8 55.1 51.7 the project school Heating 1st floor of Songshan 2015/12/7 45.6 40.2 Station No.3 School education 2015/12/8 46.3 41 building 2nd floor of Songshan 2015/12/7 46.9 41.6 No.3 School education 2015/12/8 48 42.6 building 3rd floor of Songshan 2015/12/7 48 43.2 No.3 School education 2015/12/8 49.7 44.2 building 4th floor of Songshan 2015/12/7 45.6 42.1 No.3 School education 2015/12/8 46.3 42.9 building 1m away from the 2015/12/7 52.3 48.7 northern boundary of 2015/12/8 55.3 47.2 the project 1# 1m away from the 2015/12/7 54.6 45.3 western boundary of 2015/12/8 57.6 45.8 the project 2# 1m away from the 2015/12/7 51.7 46.2 southern boundary of 2015/12/8 54.7 46.2 the project 3# Hongqiao Lijing 1m away from the 2015/12/7 52.5 47.7 Heating Station eastern boundary of 2015/12/8 55.5 47.5 the project4# Hongqiaolijing District 2015/12/7 48.6 40.8 1st floor 5# 2015/12/8 47.2 41.6 Hongqiaolijing District 2015/12/7 49.3 42.3 3rd floor 6# 2015/12/8 48.8 43 Hongqiaolijing District 2015/12/7 51.7 43.9 5th floor 7# 2015/12/8 51.6 43.7 Hongqiaolijing District 2015/12/7 53.4 44.6

7th floor 8# 2015/12/8 53.3 44.6 Hongqiaolijing District 2015/12/7 52 42.6 9th floor 9# 2015/12/8 50.1 41.8 Hongqiaolijing District 2015/12/7 49.1 46.5 1st floor 10# 2015/12/8 50.1 44.3 Hongqiaolijing District 2015/12/7 51.6 46.6 3rd floor 11# 2015/12/8 51.3 43.8 Hongqiaolijing District 2015/12/7 52.8 45.8 5th floor 12# 2015/12/8 53.4 43.5 Hongqiaolijing District 2015/12/7 54.3 44.6 7th floor 13# 2015/12/8 54.8 42.7 Hongqiaolijing District 2015/12/7 51.9 42.6 9th floor 14# 2015/12/8 52.7 39.7 North Side of 2016/8/3 50.4 - residential area 1# 2016/8/4 51.3 - North Side of 2016/8/3 52.1 - residential area 2# 2016/8/4 50.6 - North Side of 2016/8/3 49.7 - residential area 3# 2016/8/4 49.3 - North Side of 2016/8/3 51.3 - residential area 4# 2016/8/4 52.1 - North Side of 2016/8/3 62.4 - construction site 5# 2016/8/4 63.5 - North Side of 2016/8/3 64.5 - construction site 6# 2016/8/4 64.5 - North Side of 2016/8/3 59.8 - construction site 7# 2016/8/4 61.3 - North Side of 2016/8/3 63.7 - Hada East Street in construction site 8# 2016/8/4 62.9 - Daytime Chifeng City West Side of 2016/8/3 60.7 - 70dB construction site 9# 2016/8/4 61.3 - South Side of 2016/8/3 67.4 - construction site 10# 2016/8/4 68.1 - South Side of 2016/8/3 70.0 - construction site 11# 2016/8/4 68.9 - South Side of 2016/8/3 67.4 - construction site 12# 2016/8/4 67.3 - South Side of 2016/8/3 68.1 - construction site 13# 2016/8/4 69.2 - East Side of 2016/8/3 64.9 - construction site 14# 2016/8/4 65.4 - 2016/8/3 65.1 - Merchant South 15# 2016/8/4 64.8 - 2016/8/3 60.2 - Merchant South 16# 2016/8/4 59.4 -

2016/8/3 59.1 - Merchant South 17# 2016/8/4 62.1 - 2016/8/3 61.5 - Merchant South 18# 2016/8/4 62.5 -

Table 11Sewage monitoring result Parameter Date Animal and pH COD mg/L BOD mg/L SS mg/L vegetable Location Cr 5 oils mg/L Standard 6-9 500 300 400 100 limit Total Dec.7 8.13 41.4 10.2 9 0.04 discharge 2015 of Shangri La Dec.8 8.12 41.6 9.3 12 0.04 residential 2015 area Total Dec.7 8.24 39.13 9.6 12 <0.04 discharge 2015 of Songshan Dec.8 third 8.23 38.53 9.4 14.7 <0.04 2015 middle shool Total Dec.7 8.15 42.36 10.43 15 <0.04 discharge 2015 of Hongqiao Dec.8 Lijing 8.15 44.67 10.9 17.33 <0.04 2015 Residential area

Implement Class 3 level of Sewage Effluent Discharge Standards (GB8978-1996)

Monitoring location of Shangri-La residential area

Monitoring location of Songshan third middle school

Monitoring location of Hongqiao Lijing residential area

Residential area

Road Road Hada East Street

Shops and residents

Monitoring location of Hada East Street in Chifeng City

Monitoring location ▲ represents noise monitoring point, ○ represents air monitoring point and ★ is sewage monitoring point

4 Central heating project in Yindeer town, Jalaid banner, Hinggan leadge

a) First heating source plant project

Table 12Noise monitoring result Monitoring result Standard Monitoring Monitoring Site [dBA)] Limits Date Daytime Nighttime East of the factory 51.3 43.7 border South of the 50.1 42.3 2017/3/3 factory border West of the 53.2 44.6 factory border Daytime North of the 51.4 42.9 60dB； factory border East of the factory Nighttime 53.1 44.6 border 50dB South of the 52.3 42.7 factory border 2017/3/4 West of the 54.7 45.0 factory border North of the 52.9 43.7 factory border

Table 13Air monitoring result Monitoring Monitorin Monitoring PM mg/m³ SO2 NO2 Date g Site Tima mg/m³ mg/m³ 04:30-05:30 0.117 0.011 0.061 10:30-11:30 0.150 0.014 0.039 Up Wind 16:30-17:30 0.134 0.016 0.046 22:30-23:30 0.177 0.019 0.071 04:30-05:30 0.149 0.041 0.049 Down 10:30-11:30 0.181 0.025 0.046 Wind 1# 16:30-17:30 0.165 0.034 0.056 22:30-23:30 0.165 0.030 0.053 2017/3/3 04:30-05:30 0.166 0.036 0.035 10:30-11:30 0.199 0.027 0.049 Down Wind 2# 16:30-17:30 0.199 0.037 0.041 22:30-23:30 0.166 0.044 0.057 04:30-05:30 0.177 0.044 0.057 Down 10:30-11:30 0.165 0.027 0.047 Wind 3# 16:30-17:30 0.155 0.033 0.056 22:30-23:30 0.181 0.037 0.056 2017/3/4 Up Wind 04:30-05:30 0.116 0.028 0.045

10:30-11:30 0.133 0.024 0.044 16:30-17:30 0.133 0.019 0.057 22:30-23:30 0.116 0.027 0.049 04:30-05:30 0.165 0.034 0.038 Down 10:30-11:30 0.213 0.041 0.047 Wind 1# 16:30-17:30 0.197 0.037 0.052 22:30-23:30 0.164 0.042 0.060 04:30-05:30 0.150 0.029 0.049 Down 10:30-11:30 0.199 0.038 0.038 Wind 2# 16:30-17:30 0.199 0.042 0.041 22:30-23:30 0.166 0.038 0.046 04:30-05:30 0.118 0.039 0.060 Down 10:30-11:30 0.166 0.042 0.053 Wind 3# 16:30-17:30 0.186 0.038 0.061 22:30-23:30 0.199 0.030 0.046 Standard Limits 1.0 0.4 0.12

Table 14Air monitoring result Monitoring Monitoring Monitoring Monitoring Standard Site Date Parameter Results Limits SO2 2mg/m3 400 Concentration SO2 Emission 0.54kg/h / NO2 336mg/m³ 400 2017/3/10 Concentration NO2 Emission 91kg/h / Soot 23.819mg/m³ 80 Fixed Concentration monitoring port for Soot Emission 6.46kg/h / desulfurization SO2 3mg/m3 400 and dedusting Concentration facilities SO2 Emission 0.4kg/h / NO2 420mg/m³ 400 2017/3/11 Concentration NO2 Emission 59.47kg/h / Soot 44.130mg/m³ 80 Concentration Soot Emission 6.25kg/h / b Second heat source plant project

Table 15Noise monitoring result Monitoring Monitoring result [dB A)] Standard limit Date location daytime Nighttime Daytime 60dB Nighttime Mar.19 East to the plant 47.3 44.5 50dB 2016

Mar.19 South to the plant 37.6 32.3 2016 Mar.19 West to the plant 51.7 47.8 2016 Mar.19 North to the plant 39.6 35.5 2016

Table 16Air monitoring result Monitoring Monitori Monitoring PM mg/m³ SO2 NO2 Date ng Site Time mg/m³ mg/m³ 02:56-03:56 0.067 0.012 0.023 Up 08:56-09:56 0.296 0.007 0.016 Wind 14:56-15:56 0.052 0.008 0.016 20:56-21:56 0.068 0.008 0.016 02:56-03:56 0.437 0.018 0.029 Down 08:56-09:56 0.385 0.016 0.026 2017/3/24 Wind 1# 14:56-15:56 0.156 0.010 0.018 20:56-21:56 0.102 0.014 0.025 02:56-03:56 0.084 0.021 0.018 08:56-09:56 0.454 0.018 0.025 Down Wind 2# 14:56-15:56 0.175 0.017 0.023 20:56-21:56 0.153 0.019 0.026 Standard Limits 1.0 0.4 0.12

6 Heating system renovation and expansion in Tuquan county, Hinggan League

Table 17Noise monitoring result Result [dB A)] Standard limit Monitoring location Date Daytime Nighttime West to the plant Jan.15 2014 49.5 - (residential area) West to the plant Jan.15 2014 46.5 - South to the plant1# Jan.15 2014 63.9 - South to the plant 2# Jan.15 2014 62.8 - Daytime 60dB Nighttime 50dB East to the plant Jan. 16 2014 59 - South of the plant May 8 2016 58.2 48.4 West of the plant May 8 2016 55.5 46.9 North of the plant May 8 2016 47.3 45.6 East of the plant May 8 2016 58.4 49.1

Table 18Air monitoring result

Standard Monitoring location Date TSP mg/m³ limit mg/m³

South to the plant (established area) May 21 2014 0.802 South to the plant (under construction May 21 2014 0.783 area) TSP:0.3mg/m Tuquan county government May 21 2014 0.12 Monitoring location 1 Apr. 21 2016 3.939 Monitoring location 2 Apr. 21 2016 4.141

TSP concentration exceeds the standard limit. Many contractors around the project location are carrying out earthwork. Multiple causes lead to TSP exceeding. Project owners should pay attention to controlling raise dust in construction.

6 Central heating project I replacing wood to coal in Irsch , Arxan City, Hinggan League.

Table 19Air monitoring result Standard Monitoring location Date TSP mg/m³ PM10 mg/m³ limit mg/m³ Apr. 21 North of the plant 0.054 0.046 2016 Southeast of the Apr. 21 TSP:0.3mg/m P 0.064 0.049 plant 2016 M10:0.15mg/m Southwest of the Apr. 21 0.052 0.043 plant 2016

Table 20Noise monitoring result Monitoring result[dB A)] Standard limit Monitoring location Date Daytime Nighttime North of the plant Apr. 21 2016 55.7 48.2 East of the boiler house Apr. 21 2016 56.4 49.8 Daytime East to the chimney Apr. 21 2016 45.3 45.1 60dB Nighttime South of the plant Apr. 21 2016 52.7 46.3 50dB Southwest of the plant Apr. 21 2016 56.2 47.8 Northwest of the plant Apr. 21 2016 49.6 46.3

VI. CURRENT SITUATION OF SMALL BOILERS

A. Hohhot Heating Network and Boiler Room Expansion Project

Hohhot Heating Network and Boiler Room Expansion Project plans to to shut down 144, C and D zone were covered by the other heat sources units, so the closing information of small boiler is unknown, the closing information of F, G, K zone small boiler is still under survey, now 8 units of 12 small boilers closed, in which 4 units of 5 transformed into thermal stations, 4 units of 7 demolished; 6 units of 6 small boilers are still running, 3 units of 3 small boilers are the coal-to-gas, and the rest is unknown. Subproject owners still investigated actively.

Table 21: Small Boiler Closed Information of Hohhot Heating Network and Boiler Room Expansion Project (By the end of December 2016) Amount Closed Recovery after No. Boiler Units (Unit) Conditions Closing C Zone 1 Second Construction 2 2 Ethnic Articles 1 3 Nanchafang 2 4 Kuntai 2 Hohhot Huanyu 5 Environmental 2

Protection Company 6 Spring 1 7 Hairi Woolen Mill 1 Inner Health Cadre 8 1 Training School 9 Brewery 2 Nanchafang Village 10 1 Committee Social Welfare 11 1 Clothing Factory 12 Youyi Villi Plant 1 13 City Morgue 1 14 City Second Hospital 2 Inner Mongolia Institute of Geology 15 1 and Mineral Resources D Zone 1 Shiqi Group 2 2 Taji Cashmere 2 3 Jinyu Group 1 Hohhot Cigarette 4 1 Factory 5 Fruit Market 1 6 Dongyuan 2 Disable Demolish

Community Shuangshu Village 7 1 Primary School Shuangshu Village 8 2 Community Hongfeng Food 9 1 Factory National Mall 10 2 Warehouse 11 Shiqi Sixth Mill 1 12 Nailun Property 1 13 Barrel Factory 1 14 Zhonghe Cashmere 1 Electronic 15 1 Components Shuangshu 16 2 Cashmere Factory Mingde Primary 17 1 School 18 888 Paper Mill 1 Transmission and Distribution 19 Engineering 1

Company in Inner Mongolia F Zone Inner Mongolia 1 Second Housing 1 Operation

Management Office 2 Boiler Factory 1 Operation Coal-to-gas The City 14 Middle 3 1 Disable Thermal Station School 4 Art School 1 Disable Thermal Station Cable Factory in 5 1 Disable Demolish Inner Mongolia 6 Motor Factory 1 Operation Coal-to-gas G Zone Railway Admitting 1 1 Operation Office Railway Central 2 1 Operation Hospital 3 Film Studio 1 Disable Thermal Station Inner Mongolia 4 Bureau of Surveying 1

and Mapping Nailun Wangxing 5 2 Yuan 6 Building Materials 2 Disable Thermal Station

College 7 Taoyuan Community 2 Disable Demolish Construction Survey 8 and Design Institute 2

of Inner Mongolia Inner Mongolia City 9 2 Diaodui Inner Mongolia 10 1 Institute of Metallurgy K Zone Inner Mongolia 1 Branch of Xinhua 2 Disabled Demolished News Agency Yongtai Commercial 2 1 Buildings 3 Baifang Group 2 4 Erqing Hotel 2 5 Muslim West Temple 2 Yi Xing Cashmere 6 1 Products Factory West Longwang 7 1 Temple Community West Longwang 8 Temple Village 1

Committee 9 City Bus Company 2 Machine Tool Plant 10 1 Four Plants Plastic Factory 11 1 Dormitory Municipal 12 Environmental 1

Monitoring Station 13 Children's Welfare 1 Inner Mongolia 14 2 Sanlian Chemical Jinwei Si and 15 Chemical Fiber 1

Company M Zone Beiyuan Street 1 1 Heating Housing Construction 2 Company in Inner 2

Mongolia 3 The New City Heating 2 Suhu Street Primary 4 2 School

Inner Mongolia 5 1 Education Press 6 Hohhot CCB 1 Inner Mongolia 7 1 Cultural Cadre Inner Mongolia High 8 1 Court Guest House 9 Electronic Detection 1 City Commercial 10 1 Bank 11 Wujin Store 1 12 The New City Heating 2 13 Inner Organs Centre 2 14 Nailun 1 15 Xincheng Hotel 2 16 Venture Real Estate 1 Inner Mongolia 17 1 Procuratorate Hostel Teaching Equipment 18 1 Supply Station Inner Mongolia 19 2 Military 20 Inner Mongolia Hotel 2 Inner Mongolia Party 21 2 School Inner Mongolia 22 2 Institute of Education National Troupe of 23 1 Inner Mongolia Experimental High 24 2 School Inner Mongolia 25 Animal Husbandry 1

Department Inner Mongolia 26 Tobacco Training 1 Operation Coal-to-gas Centre Inner Mongolia Coal 27 1 Geology 28 Hexi Property 2 Hohhot Special 29 1 Education College 30 Wulan Hotel 1 Inner Mongolia 31 2 Mental Hospitals Inner Planning 32 Commission Family 2

Wings

Inner Mongolia China 33 2 Construction Bank Inner Mongolia 34 2 Statistical Bureau 35 City Retired Cadres 1 Security Department 36 2 in Inner Mongolia 37 City Cable Factory 2 Transformer Plant in 38 1 Inner Mongolia 103 Total 144

B. Baotou City Central Heating Expansion Project

Baotou City Central Heating Expansion Project plans to close 164 small boilers, for present it has been fully closed, and all transformed into thermal station.

Table 22: Small Boiler Closed Information of Baotou City Central Heating Expansion Project No. Names Amounts(Unit) Property Units Location Closing Recovery Progress after Closed 1 Standard 3 Baotou Standard Qing10# Disable Thermal Factory Factory Station 2 Song and 1 Baotou Song and Qing 10# Disable Thermal Dance Dance Troupe Station Troupe 3 Steel Institute 3 Inner Mongolia Qing 14# Disable Thermal West Branch University of Station Science and Technology 4 Movie Palace 1 Baotou City Film Qing 15# Disable Thermal Company Station 5 Qiate 1 Qiate Cinema Qing 17# Disable Thermal Cinema Station 6 Tuan 11 3 Baogang Tuan 11 Disable Thermal Property Office North Area Station 7 Tuan 12 2 Kunqu Property Tuan 12# Disable Thermal Management Station Office 8 Qing 17 1 Baotou Current Qing 17# Disable Thermal Construction Co. Station 9 Zilidao North 3 Ronghua Zilidao North Disable Thermal Property Station 10 Tuan 13 2 Kun Government Tuan 13 Disable Thermal East Station 11 Tuan 13 2 Baogang Tuan 13 Disable Thermal Property Office West Station 12 Tuan 15 Nan 2 Baotou City Tuan 15 Disable Thermal

Guangyuan Real South Station Estate Development Company 13 Sanitation 1 Kunqu Sanitation Tuan Jia16 Disable Thermal Department Department Station 14 Post Office 1 Baotou City Post Tuan Jia 16 Disable Thermal Office Station 15 Tuan Jia16 1 Baotou City Post Tuan Jia 16 Disable Thermal Office Station 16 Tuan 18 2 Baotou City Tuan 18# Disable Thermal Cement Plant Station 17 Baogang 1 Baogang High Tuan 18# Disable Thermal High School School 25 Station 25 18 Combined 3 Baotou Dijiu Real Tuan 12# Disable Thermal Boiler Room Eestate Station Development Company 19 Xinhua 1 Xinhua Bookstore Tuan 15 Disable Thermal Bookstore South Station Family Wings 20 Building 3 Baotou City Tuanjie Disable Thermal Research Building Street Station Institute Research Institute 21 Nanpai 1 Baotou City Across to the Disable Thermal Community Hongda Real 24th Primary Station Estate School 22 Longda 1 Longda Group Tuanjie Disable Thermal Group Street 183# Station 23 Baotou City 1 Baotou City Tuanjie Disable Thermal Shining Metal Shining Metal Street 13# Station Products Co., Products Co., Ltd. Ltd. 24 Baotou Kun 2 Baotou Kun Tuanjie Disable Thermal District Croak District Croak Street Station Spices Ltd. Spices Ltd. 25 Baogang 1 Baogang Honghu Youth 19# Disable Thermal Honghu Printing Factory Station Printing Factory 26 Tuanjie 1 Tuanjie Avenue Tuanjie Disable Thermal Avenue 1th 1th Primary Street 19# Station Primary School School 27 Baotou City 1 Baotou City Third 38 Road Disable Thermal Third Transport Station Transport Company

Company 28 Baotou City 2 Baotou City Tuanjie Disable Thermal Longju Dairy Longju Dairy Street 22# Station Liability Liability Limited Limited Company Company 29 Steel 22 2 Baogang Heating Gang 22 Disable Thermal Plant Commmunity Station 30 First Affiliated 3 First Affiliated Backyard of Disable Thermal Hospital Hospital First Station Affiliated Hospital 31 Tuan Jia 14 2 Baogang Heating Jia 14 Disable Thermal Plant Commmunity Station 32 Yiingbin 5 Baotou Property Yiingbin Disable Thermal Boiler Room Office Community Station 33 Pay 7 Boiler 3 Baotou Property Pay 7 Disable Thermal Room Office Community Station 34 Great Wall 2 Great Wall Kangle Disable Thermal Company Company North Station North Heavy Heavy Industry Industry Group Group 35 Baotou City 2 Baotou City Knagle Disable Thermal Seventh Seventh Hospital Station Hospital 36 Fuhua 2 Fuhua Cashmere Minzhu Disable Thermal Cashmere Factory Road Station Factory 37 Xincheng 1 Xincheng Jiaer Ba Disable Thermal Secondary Secondary Station School School 38 Chang 2 Chang Xingda Fu 14 Disable Thermal Xingda Textile Mill Station Textile Mill 39 Xiangda 1 Person Xiwang Disable Thermal Furniture Road Station Company 40 Inner 1 Person Xingfu South Disable Thermal Mongolia- Road Station Power Electrical Equipment Company 41 Guangzheng 1 Person Xitu Road Disable Thermal Electric Station Appliance 42 Hope Feed 1 Group Qinggong Disable Thermal South Road Station

43 Rong Shiya 1 Person Laodong Disable Thermal Cashmere Road Station 44 Hydraulic 1 Group Laodong Disable Thermal Machinery Road Station Company 45 The new 1 Person Xitu Road Disable Thermal Hitachi Station Electronics 46 Zhang Yuzhi 1 Person Youyi Street Disable Thermal Station 47 Raymond 1 Person Xingfu South Disable Thermal Rare Earth Road Station Chemical 48 Nuclear 1 State Xingfu South Disable Thermal Industry 208 Road Station 49 Civil Foundry 1 Group Youyi Street Disable Thermal Station 50 Tianfu Fan 2 Group Youyi Street Disable Thermal Station 51 Farming 2 Group Xingfu South Disable Thermal School Road Station 52 Post Office 1 Group Steel Street Disable Thermal Family Wings 64 Station 53 Mingtian 2 State Youyi 22 Disable Thermal Technology First Station Community 54 Shengao 1 Person Shaoxian Disable Thermal Music Road Station Square 55 Baogang 1 State Youyi Street Disable Thermal Youyi Hotel 15# Station 56 Yunlong 1 Person Aerding Disable Thermal Orthopedics Street 61 Station 57 Financial 1 State Steel Street Disable Thermal Building 50 Station 58 Bus 1 State Shaoxian Disable Thermal Company 23# Station 59 Cologne 1 Person Steel Street Disable Thermal Hotel Station 60 Shenhua 1 State Aerding Disable Thermal Real Estate Street 1 Station 61 Defeng 1 Person Steel Street Disable Thermal Trade 52 Station 62 Baotou 2 State Steel Street Disable Thermal Medical Station School 63 ICT Jianan 1 State Caoyuan Disable Thermal Community Station 64 Mingzhu 1 Person Youyi Street Disable Thermal

Real Estate Station 65 Huanghe 3 State Linyin Zhong Disable Thermal Community Road Station Boiler Room 66 Youyi 31# 2 State /Baogang Youyi 31# Disable Thermal Station 67 Youyi 18# 9 State /Baogang Youyi 18# Disable Thermal Station 68 101# 4 State /Baogang Youyi 26# Disable Thermal Station 69 East Youyi 7 State /Baogang Youyi 22# Disable Thermal 22# Station 70 West Youyi 4 State /Baogang Youyi 22# Disable Thermal 22# Station 71 114# 6 State /Baogang Youyi 18# Disable Thermal Station 72 106# 8 State /Baogang Youyi 13# Disable Thermal Station 73 Shaoxian 3 State Shaoxian Disable Thermal 20# 20# Station 74 105# 4 State Youyi 15# Disable Thermal Station 75 Erye 8 State /Baogang Youyi West Disable Thermal Community Community Station 76 Yingbin 5 State Yingbin Disable Thermal Community Community Station 77 Total 164

C. Chifeng Urban Central Heating Pipe Network Expansion Project Chifeng Urban Central Heating Pipe Network Expansion Project plans to close 37 small boilers, it has been closed down, including 7 heat transfer stations, 4 disabled, 25 removed.

Table 23: Small Boiler Closed Information of Chifeng Urban Central Heating Pipe Network Expansion Project Services Scope/ Closed Recovery after No. Names Location Units Region Time Closed Dongchen Hongsha Dongche Dongchen Power 1 Power Boiler 2013.8.6 Disable n Area n Power / Near Room Hongshan Hongsha Hongsha Institutions of Thermal 2 Driving School n Driving 2014.7.4 n Area Excellence / Near Station Boiler Room School Hongshan Hongsha Hongsha Hongshan Area 3 Area Quality n Area 2013.4.3 Demolish n Area Quality Boiler Room Quality Hongshan Hongsha Hongsha Hongshan Area 4 2013.3.6 Disable Area Forest n Area n Area Forest Police

Police Forest Detachement Detachement Police Boiler Room Detache ment Longsha Longshang Hongsha ng Eastern Suburbs 5 Mountain Villa 2013.4.1 Demolish n Area Mountain of Forest Police Boiler Room Villa Chifeng Boyue Chifeng Songsha Chifeng Boyue 6 School Boiler Boyue 2010.5.6 Demolish n Area School Room School Songshan Songsha Civilian Songsha n Area Thermal 7 Civil Affairs / Near 2011.6.3 Residential n Area Housing Station Boiler Room Authority Original Original Bearing Songsha Bearing Factory 8 Bearing 2012.4.22 Demolish Factory Office n Area Building Factory Boiler Room Songsha Songshan Songsha n Thermal 9 Erxiao Boiler Songshan Erxiao 2012.6.23 n Area Educatio Station Room n Bureau Inner Mongolia Songsha Geological Geological Songsha n Thermal 10 Second Middle Second Middle 2010.4.12 n Area Educatio Station School Boiler School n Bureau Room Songshan Songshan Songsha Housing Thermal 11 Administration Administration / 2009.8.6 n Area Authority Station Boiler Room Near Mujiaying Mujiayin Village Songsha g Village Mujiaying New 12 2010.11.2 Demolish Committee n Area Committ Village / Year Boiler Room ee Qunguan Real Qunguan Mujiayingzi Songsha 13 State Building Real Government / 2012.3.2 Demolish n Area Boiler Room State Near Geological Geologic Geological Prospecting Songsha al 14 Prospecting Ten / 2013.9.3 Demolish Ten Boiler n Area Prospecti Near Room ng Ten Songshan Songsha Songsha Songshan Hongqi 15 Hongqi Store n Hongqi 2009.7.4 Demolish n Area Store / Near Boiler Room Store Songshan Songsha Songsha Songshan World 16 World Today n World 2010.6.28 Demolish n Area Today Boiler Room Today 17 Songshan Songsha Original Songshan 2011.3.25 Demolish

Activated n Area Songsha Activated Carbon Carbon n Residence / Near Residence Activated Boiler Room Carbon Songshan Songsha Labor Camp Songsha Songshan Labor 18 n Labor 2012.4.14 Demolish Building Boiler n Area Camp Building Camp Room Songshan Songsha Songsha Songshan 19 Fangxiao n 2010.6.7 Demolish n Area Fangxiao Boiler Room Fangxiao Songshan Songsha Songshan Zhuye Zhuye Guocai Songsha n Zhuye 20 Guocai Hotel / 2010.8.3 Demolish Hotel Boiler n Area Guocai Near Room Hotel Original Laosan Laosan Laosan Residential Songsha Residenti 21 Residential 2012.7.4 Demolish Construction n Area al Construction Boiler Room Construc tion Original Songsha Songshan n Supply Supply and Songshan Supply Songsha and 22 Marketing and Marketing 2010.3.2 Demolish n Area Marketin Cooperative Cooperative g Boiler Room Cooperat ive Qiaoxi Hotel Songsha Qiaoxi 23 Qiaoxi Hotel 2012.5.5 Demolish Boiler Room n Area Hotel Songshan Songsha Songsha Thermal 24 Laoliu Hospital n Laoliu Laoliu Hospital 2010.3.6 n Area Station Boiler Room Hospital Songsha Songshan n Songshan Geological Geologic Songsha Geological 25 Prospecting al 2011.7.19 Demolish n Area Prospecting Hospitals Prospecti Hospitals / Near Boiler Room ng Hospitals Industrial Industrial and and Industrial and Commercial Commer Commercial Bank Bank branch of Songsha cial Bank 26 branch of 2011.6.20 Demolish Songshan n Area branch of Songshan Chifeng Boiler Songsha Chifeng Room n Chifeng

Tehu Tehu Sheng Songsha Sheng Tehu Sheng Old 27 Old Building 2010.7.22 Demolish n Area Compan Building Boiler Room y Cement Boiler Hongsha Original 28 Cement / Near 2010.6.4 Demolish Room n Area Cement Er East Street Hongsha Health Er East Street 29 Health Bureau 2011.8.7 Demolish n Area Bureau Health Bureau Boiler Room Northern Northern Northern Hongsha 30 Pharmaceutica Pharmac Pharmaceuticals / 2013.6.4 Demolish n Area ls euticals Near Original Woolen Mill Hongsha Woolen Woolen Mill 31 Factory Boiler 2012.8.8 Demolish n Area Mill Factory Room Factory Rhine Rhine Boiler Hongsha 32 River Rhine / Near 2013.3.20 Demolish Room n Area Bath Chifeng Chifeng Third Third Chifeng Third Experimental Hongsha Experim Experimental 33 Primary 2014.8.6 Demolish n Area ental Primary School / School Boiler Primary Near Room School Songshan Songsha Songshan Fouth Fouth Primary Hongsha n Fouth 34 Primary School / 2014.9.25 Disable School Boiler n Area Primary Near Room School Songshan Songsha Songshan Public Public Security Songsha n Public Thermal 35 Security Bureau / 2014.6.20 Bureau Boiler n Area Security Station Near Room Bureau Songsha Songshan Fifth Songshan Fifth Songsha n Fifth 36 Middle School Middle School / 2014.7.15 Disable n Area Middle Boiler Room Near School

D. Xingan Meng Zhalaiteqi Inder Town Central Heating Project Xingan Meng Zhalaiteqi Inder Town Central Heating Project plans to close 37 small boilers, all of them has been closed down.

Table 24: Small Boiler Closed Information of Xingan Meng Zhalaiteqi Inder Town Central Heating Project Small Boiler Closed No. Names Amount Room Conditions t

Original Plant 1 Identification Oil Plant 2 1 Disable Building 2 Traffic Police 1 1 Disable Inder Fourth Middle 3 4 2 Disable School 4 Meng Hospital 4 2 Disable 5 District Procuracy 1 1 Disable Inder Sixth Middle 6 2 1 Disable School 7 Fire Fighting Unit 1 1 Disable 8 Party School 2 1 Disable Inder Fifth Middle 9 2 1 Disable School Inder Fifth Primary 10 1 1 Disable School 11 Vocational High School 2 1 Disable 12 Sports School 1 1 Disable Inder Second Middle 13 4 2 Disable School 14 Inder Middle School 4 2 Disable 15 Agricultural Bank 4 2 Disable 16 Immigration Office 1 1 Disable Running-water 17 1 1 Disable Company 18 Credit Union 1 1 Disable Transportation Control 19 2 1 Disable Station Quality and Technical 20 1 1 Disable Supervision Bureau Inder Fourth Primary 21 2 1 Disable School Inder Third Middle 22 4 2 Disable School 23 Oil Company 2 1 Disable 24 Agricultural Bureau 1 1 Disable 25 Original IESS 1.5 1 Disable 26 Mobile Company 0.3 1 Disable 27 Zhongfa Appliance City 0.5 1 Disable Sanjiang Department 28 0.5 1 Disable Store 29 Medical Hospital 0.2 1 Disable 30 Iner Town 0.2 1 Disable 31 Shenshan Hotel 0.2 1 Disable Total 53.4 37 Disable

E. Xingan Meng Tuquan Heating Expansion Project Xingan Meng Tuquan Heating Expansion Project plans to close 33 small boilers, 29 closed down, including 26 removal, three disabled; four runs, of which three are coal-fired boilers.

Table 25: Small Boiler Closed Information of Xingan Meng Tuquan Heating Expansion Project Services Recovery Close Closed No. Names Location Unit Scope / after Time Conditions Region Closed Xinguang Heating Xinguang Huuafeng 1 Company Heating Co., Heating 2016 Close Demolish Street 249 Central Heat Ltd. Plant Xinguang Heating Xinguang Huuafeng 2 Company Heating Co., Heating 2016 Close Disable Street 249 Central Heat Ltd. Plant Xinguang Heating Xinguang Huuafeng 3 Company Heating Co., Heating 2016 Close Disable Street 249 Central Heat Ltd. Plant Xinguang Heating Xinguang Huuafeng 4 Company Heating Co., Heating 2016 Operates Operates Street 249 Central Heat Ltd. Plant County Kangle County 5 Heating 2016 Close Disable Hospital Street Hospital Passenger Huafeng Passenger 6 Heating 2016 Close Demolish Station Street Station County Xinhua County 7 Heating 2016 Close Demolish Credit Union Road Credit Union Tianyu Limin Tianyu 8 Heating 2016 Close Demolish Company Street Company Tianquan Gongye Tianquan 9 Heating 2016 Close Demolish Company Road Company EDB EDB Material Zhenxing 10 Material Heating 2016 Close Demolish Factory Road Factory 2 units First Middle Jianshe First Middle 11 of 2016 Close Demolish School Street School Heating 12 Second Kangle Second 2 units 2016 Close Demolish

Middle Street Middle of School School Heating Running- Running- Gongye 13 water water Heating 2016 Close Demolish Road Company Company Forestry Yuuwen Forestry 14 Heating 2016 Close Demolish Bureau Street Bureau Livestock Livestock Gongye 15 Management Management Heating 2016 Close Demolish Road Station Station Tuquan Limin Tuquan 16 Heating 2016 Close Demolish Government Street Government Anda Animal Huafeng Anda Animal 17 Heating 2016 Close Demolish Husbandry Street Husbandry Agricultural Agricultural Huanfeng 18 Machinery Machinery Heating 2016 Close Demolish Street Company Company Quanye Zhenxing Quanye 19 Heating 2016 Close Demolish Market Road Market Huafeng 20 Ruyi Hotel Ruyi Hotel Heating 2016 Close Demolish Road County County Hospital Xinhua Hospital 21 Heating 2016 Close Demolish Second Road Second Clinic Clinic Huafeng 22 IRS IRS Heating 2016 Close Demolish Street Xiangyang 23 Oil Company Oil Company Heating 2016 Close Demolish Road Industrial Industrial and Minzu and 24 Commercial Heating 2016 Close Demolish Street Commercial Bureau Bureau Education Xingan Education Operates, 25 Heating 2016 Bureau Street Bureau coal Second Nanxiang Second 26 Heating 2016 Close Demolish Kindergarten Street Kindergarten Longxing Xingan Longxing 27 Heating 2016 Close Demolish Hotel Street Hotel Vocational Xiangyang Vocational 28 Heating 2016 Close Demolish High School Road High School Maintain a Maintain a Yuwen 29 Road in the Road in the Heating 2016 Close Demolish Street County County Xinghua Xinghua 2 units Road Xinghua Road Operates, 30 of 2016 Individual Road Individual coal Heating villa villa 31 Personal Xinghua Personal Heating 2016 Operates,

Building Road Building coal Dongshan Huafeng Dongshan 32 Heating 2016 Close Demolish Gas Station Street Gas Station Oil Company Xiangyang Oil Company 33 Heating 2016 Close Demolish Residence Road Residence

F. Xingan Meng Arxan Yi'ershi “coal-to-wood”Central Heating Project Phase I Xingan Meng Arxan Yi'ershi “coal-to-wood”Central Heating Project Phase I plans to close 39 small boilers, it has closed down 23, wherein four are converted into thermal stations, 18 outage, one demolition; the remaining 16 plan to close in 2017.

Table 26: Small Boiler Closed Information of Xingan Meng Arxan Yi'ershi “coal-to- wood”Central Heating Project Phase I Services Close Close Recovery No. Name Location Unit Scope / Time Conditions after Closed Region Arxan Forestry Arxan Built the Bureau Life Forestry Xincheng 3 units of Thermal 1 Services Bureau Life 2013 Close Street Heating Station, but Office-First Services unused Heating Station Office Arxan Forestry Xincheng Arxan Built the Bureau Life Forestry 2 units of Thermal 2 Services Bureau Life 2013 Close Heating Station, but Office-Second Services unused Heating Station Office Arxan Forestry Xincheng Arxan Close Bureau Life Forestry 3 units of 3 Services Bureau Life 2012 Disable Heating Office-Third Services Heating Station Office Arxan Forestry Arxan Close Built the Bureau Life Forestry Linhai Thermal 4 Services Bureau Life Heating 2014 Street Station, but Office-Fourth Services unused Heating Station Office Arxan Forestry Xincheng Arxan Close Bureau Life Forestry Thermal 3 units of 5 Services Bureau Life 2014 Station is Heating Office-Fifth Services using Heating Station Office Hongbo Xincheng Close Disable 6 Building Personal Heating 2013 Heating Station Second Close Disable Second Middle Linhai 7 Middle Heating 2013 School Street School Turntable Close Disable 8 Xincheng Personal Heating 2011 Road Heating

Station

Linhai Close Disable 9 TV Station TV Station Heating 2013 Street Tsinghua Park Xincheng Close Disable 10 Personal Heating 2011 Heating Station Comfort House Xincheng Comfort Close Disable 11 Heating 2013 Hotel House Hotel Transport Linhai Transport Close Disable 12 Management Management Heating 2013 Office Office Linhai Senxing Close Disable Senxing Construction Construction 13 and Heating 2012 and Installation Installation Company Company Xingan Meng Linhai Xingan Close Disable Border Meng Border 14 Heating 2014 Protection Protection Troops Troops Linhai Office of Close Disable Office of Local 15 Local Heating 2014 Taxation Taxation Linhai Trading Close Disable 16 Trading Estate Heating 2014 Estate Linhai Fire Close Disable 17 Fire Company Heating 2014 Company Army Army Close Disable 18 Provisions Xincheng Provisions Heating 2014 Supply Supply Second Close Disable Second Middle 19 Linhai Middle Heating 2013 School School Xincheng Lumber Close Disable Lumber 20 Storage Heating 2014 Storage Yard Yard 21 Spring Water Xincheng Spring Water Heating 2014 Close Disable Linhai Third Close Third Primary 22 Primary Heating 2015 Disable School School Forestry Linhai Bureau Forestry 23 Heating 2017 Detention Bureau House Yi'ershi Linhai Forestry 24 Forestry Heating 2017 Bureau Center Forestry Forestry 25 Linhai Heating 2017 Bureau Bureau

Fireproof Office Yi'ershi China Xincheng 26 China Union Heating 2017 Union Xincheng Postal 27 Postal Savings Heating 2017 Savings Shengda Xincheng 28 Personal Heating 2017 Community Billionaire Linhai 29 Commerce and Personal Heating 2017

Trade Building Forestry Linhai Forestry 30 Heating 2017 Bureau Bureau Forest Linhai Forestry 31 Heating 2017 Policeman Bureau 32 Xingchen Hotel Xincheng Personal Heating 2017 Junyue Xincheng 33 Personal Heating 2017 Community Hufalin Xincheng 34 Personal Heating 2017 Community West Gas Xincheng 35 Gas Station Heating 2017 Station East Gas Linhai 36 Gas Station Heating 2017 Station 37 Linhai Hotel Linhai Personal Heating 2017 Railway Xincheng Railway 38 Heating 2017 Station Station Second Wood Xincheng 39 Products Personal Demolished Close Demolition

Factory

VII. PUBLIC CONSULTATION

In the preparation stage of this project, the plan on information disclosure and public participation had been formulated. According to the public participation plan, implementing agency (IA) would open the project information, inform the affected people, introduce the complaints settlement mechanism to the affected residents and guarantee the effect of publicity in the project area.

In the construction stage, maintain a smooth channel of dialogue between the IAs and the affected population and the main stakeholders, by continued public participation (such as questionnaires, interviews, seminars, public hearings etc.). This kind of public participation activities is needed at least once a year. During the construction period, the environmental engineer contractor and construction supervision company will conduct monthly informal interviews of the affected residents. Through these activities, understand the matter of public concern and ensure timely treatment of complaints or unforeseen negative environmental impact.

All complaints received (including community leaders, nearby institutions, local authorities, the local environmental protection bureau and the Contractor) and public complaints unit contact information should be open at least on the construction site of the information bulletin board publicly.

Additional public participation will be based on the inspection and monitoring during construction and operation of the impact and mitigation measures, and further evaluation results of economic and social impact on the environment to decide whether to implement.

According to the requirements in the plan on information disclosure and public participation, the task content in the preparation stage has been completed. However, the requirement content during construction has not been implemented. The detailed public participation plan is shown in Table 27 and detailed implementation status is shown in Table 28.

Table 27 Public participation plan Organizer Measure/Time Theme Participants A. Project preparation period IMPMO, Subproject Priority, design, coordination office, IAs, environmental Design Institute, EIA IMPMO, benefits and unit, resettlement Subproject The EIA public impacts, social planning unit, coordination opinion survey benefits and environmental protection office, IAs, EIA Once for each impacts and bureau, the relevant unit, subproject mitigation government departments Resettlement measures, attitude and the community planning unit and suggestion on government and the subprojects community representatives The expert group reviewOnce for each the subproject

The social economy and the affected

population survey Public participation meeting and questionnaire

survey; Once for the whole project Site investigation

Many times B. Construction Period Adjust mitigation Public measures, Subproject participation construction Residents in the vicinity coordination impact, opinions and site of the construction area office, IAs review :At and suggestions in least once a year accordance with actual needs Informal collect public Contractor and interviews of the opinions and construction affected suggestions to Residents in the vicinity supervision residents:At adjust mitigation of the construction area company least once a measures month accordingly Adjust mitigation measures, Subproject Information construction Residents and coordination publicityAt impact, opinions representatives of the office, IAs and suggestions in society least once a year accordance with actual needs

Table 28Implementation status of subprojects

Project Preparation period Construction period

Hohehot Public survey started in Dec. 2007. city Investigated people through newspaper or heating questionnaire are mainly nearby residents. Informal interview to network They show different understandings to the affected residents at lease and boiler project and fill in the questionnaire carefully. once a month house 101 questionnaires were collected. reform Investigated people include cadres, and workers, farmer, freelances and etc. Among

expansion the 101 investigated people, 79 show project approvals to the project construction, 10 stay neutral and 10 express objections. Their major concern is the noise impact after operation to their life. After patient explanation and positive promise of staff from Futai Corporation they show acceptance to the project construction. Baotou 250 questionnaires were distributed in city Sep.(50) and Nov. (200)2007. Investigations central were carried out to relevant groups. In the heating questionnaire, both basic situation of the Informal interview to renovation project construction and the purpose of nearby residents at least and investigation are listed. The investigated once a month expansion people included nearby residents, workers, project students, cadres, businessmen and so on. A large majority of people show positive approval to the project construction. Chifeng In Jul. 4 2012, experts downtown from many sections study central on environmental impact heating related matters of heat network engineering construction renovation in Changqing street and and Songzhou Road. Those expansion experts include Yao project Xiangmin,Chifeng Municipal government Questionnaire survey were carried out to 50 Housing and construction nearby residents including Zhao Lihong and Committee,Zhao Dai Junying on Sep. 2007. All of them show Mingquan in Planning approval to the project. They regard the Bureau; Wang Pinzhong project as environmental friendly, livelihood inSARFT; Hao Lihua in beneficial and energy conserving. On Oct. Civil Air Defense Office; Li 2007, experts from Chifeng Environmental Jiwei from river and road Science Research Institute ,Chifeng division; Pang Xuesong Academy of Environmental Sciences and from heat supply office; EPA carried on expert discussion on the Zhao Hongguang, Chifeng environmental impact of the project. Electric Power Bureau; Wang Hongbin from China Mobile; Sun Lifeng from China Telecommunication;Zhang Jian from China Unicom;Zhang Xiaodong from Public transport cooperation; Liu Fujun, Yu Zhikui, Jiang Limin, Yu Guohui from Fulong heating company; Zhang

Zhiliang from Hongshan District; Zhang Xin,Zhang Shufeng, Xu Chunhua from Songshan District; Informal interview to nearby residents at least once a month. Central Central heating project requires long pipeline heating with heat exchange station between, so the project in investigation were carried out in Nov. 2007. Yindeer The investigation scope include people from town, nearby residences, government agencies, Jalaid schools and enterprises. The living address banner, of investigated people is in the vicinity of Informal interview to Hinggan boiler houses. The nearest distance nearby residents at least leadge between boiler house to residence is 20-30. once a month The total number of investigated people was 24, 98% out of which approve the project construction and only one people stay neutral. A large majority of people approve the direction of central heating project, regarding it beneficial to the development of Yindeer town. Heating The first publication of environmental system assessment information were done from Mar. renovation 5-16,2012 through the government website of and Tuquan County. During Mar.19-30, expansion publication of environmental impact of the in Tuquan project were done in the government website Informal interview to county, of Tuquan county. Contractors visited nearby nearby residents at least Hinggan villages and enterprises during Mar.20-30 once a month. League and solicit public opinions. They distributed and collected 50 efficient questionnaires. The investigated people basically approve the project construction. Local residences show great expectations to the project. Central The first publication of environmental impact heating assessment was done during Aug. 5-16, project I 2011 through the website of Arxan replacing government; the second publication was wood to done in the same way during Aug. 19-30, Informal interview to coal in 2012. Contractors visited nearby villages and nearby residents at least Irsch , enterprises during Mar.20-30 and solicit once a month. Arxan public opinions. They distributed and City, collected 50 efficient questionnaires. The Hinggan investigated people basically approve the League. project construction. Local residences show great expectations to the project.

VIII TRAINING AND INSTITUTIONALSTRENGTHENING

To enhance the environmental management and monitoring abilities for the PIAs, training plan on institutional enhancing had been formulated in the early stage of this loan project (Table 29). During the implementation of consulting services, training on environmental management and monitoring requirements had been carried out for PIAs by the environmental specialist.

According to the data obtained in the field, the training requirements proposed during the project preparation period has been implemented or will be implemented during the period of this report. And other training plan will be carried out in future.

Table 29Training Plan on Institutional Strengthening Training Participant Content Time Day Number Budget Source of Implementation of (CNY) Funds situation people 10,000 Environmental PMO, PIAs, The security policy 2 1 30 4 Included in the Implemented regulations and Contractors and other loan policies of the environmental implementation ADB and regulations of consulting China ADB package Chinese Environmental laws, policies, standards and regulations International environmental management practices on civil construction Complaint PMO, Complaint resolution 2 1 30 4 Implemented settlement PPCU, structure, mechanism PIAs, local responsibilities and Environment time frame al Protection Type of the Bureau, the complaint and community qualification and the assessment main stakeholders Implementation PMO, PIAs, Impact and 4 1 40 10 Implemented of Contractors, mitigation measures environmental Construction in construction and monitoring plan Supervision operation period Company Monitoring and audit mechanism Reporting requirements

EMP’ corrective action International PMO, PIAs best practices on the 2 2 30 6 To be good practice operation and implemented and technology maintenance of on central central heating heating system; New heating technology Total 10 5 130 24

IX KEY ENVIRONMENTAL ISSUES As described above, no major environmental problems were found during the period of this report. EMP has got proper implementation and mitigates the environmental impact to controllable situation. But some issues still existed. The issues identified in the field surveys during the period of this report are as follows:

During the period of winter shutdown, raw materials and waste stacked randomly in construction site. Our suggestion is that raw materials placed in the raw material storehouse; waste placed in the scrap yard and covered; during construction, the road should be hardened and sprayed regularly to reduce the impact of dust on the surrounding residents.

X. CONCLUSIONS AND SUGGESTIONS

During the period of this report, no major environmental problems were found in the project. Different degrees of environmental management and monitoring were carried out in subprojects. Under the joint efforts of IMPMO, consultation experts of EED and owners of subprojects, Environmental Management Plan was implemented thoroughly and appropriately. But there are still spaces for further perfection. The following tasks are suggested to accomplish in the next step:

(1) sign contracts with professional environmental monitoring agencies for external environmental monitoring; realize the responsibilities of supervision company;

(2) ensure the normal operation of environmental protection facilities in subprojects;

(3) enhance the management of construction sites; perfect environmental mitigation measures; solve the environmental problems in compensation measures.