Initial Environmental Examination

Project Number: 51401-002 June 2020

PRC: Green Intelligent Transport and Logistics Management Demonstration Project

Xi’an High-tech New Town Logistics Park Subproject

Prepared by Foreign Capital Utilization Center of Shaanxi Provincial Transport Department and Shaanxi Province Communication Investment Group Co. Ltd. for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 25 May 2020) Currency Unit – yuan (CNY) CNY1.00 = $0.1403 $1.00 = CNY7.1294

ABBREVIATIONS ADB Asian Development Bank AP Affected Person EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMoP Environmental Monitoring Plan EMP Environmental Management Plan FSR Feasibility Study Report GDP Gross Domestic Product GRM Grievance Redress Mechanism IA Implementing Agency IEE Initial Environmental Examination IT Interim Target MAC Maximum Acceptable Concentration MEE Ministry of Ecology and Environment MEP Ministry of Environmental Protection PAM Project Administration Manual PCR Physical Cultural Resources PIE Project Implementation Entity PMO Project Management Office PPE Personnel Protective Equipment PRC People’s Republic of SPS Safeguard Policy Statement, ADB SPTD Shaanxi Provincial Transport Department TA Technical Assistance WB World Bank WHO World Health Organization WWTP Wastewater treatment plant

WEIGHTS AND MEASURES

BOD5 Biochemical Oxygen Demand, five days CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen kg Kilogram km Kilometer kWh Kilowatt Hour Leq Equivalent Continuous Noise Level cm Centimeter m Meter m/s Meters per Second m2 Square Meters m³ Cubic Meters mg/L Milligrams per Liter mg/m3 Milligrams per Cubic Meter µg/m3 Micrograms per Cubic Meter NOx Nitrogen Oxides oC Degrees Celsius O3 Ozone pH A measure of the acidity or alkalinity of a solution PM Particulate Matter PM10 Particulate Matter smaller than 10 micrometers PM2.5 Particulate Matter smaller than 2.5 micrometers TSP Total Suspended Particulates SO2 Sulfur Dioxide t/h Tons per Hour t/a Tons per Annual

NOTES

(i) In this report, "$" refers to US dollars.

(ii) This document has been prepared following ADB’s Safeguard Policy Statement 2009.

This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of the ADB website.

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

TABLE OF CONTENTS EXECUTIVE SUMMARY ...... 1 I. INTRODUCTION ...... 7 A. The Project ...... 7 B. Introduction of Borrower ...... 7 C. Report Purpose ...... 8 D. Approach to Report Preparation ...... 8 E. Report Structure ...... 8 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 11 A. Applicable ADB Policies, Regulations and Requirements ...... 11 B. PRC Environmental Legal Framework ...... 12 C. PRC Environmental Impact Assessment Framework and Procedures ...... 13 D. Relevant International Agreements ...... 14 E. Applicable PRC Environmental Standards ...... 15 III. PROJECT DESCRIPTION ...... 24 A. The Project ...... 24 B. Geographical Location...... 24 C. Project Rational ...... 26 E. Project Scope ...... 27 F. Energy Consumption and Emission ...... 30 G. Implementation Arrangements ...... 32 IV. DESCRIPTION OF THE ENVIRONMENT...... 33 A. Description of the Region ...... 33 B. Natural environment ...... 36 C. Ambient Environment Baseline ...... 37 D. Ecological Environment and Objectives of Sensitive Protection ...... 40 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...... 42 A. Environmental Impact in the Pre- construction Phase...... 42 B. Anticipated Environmental Impacts and Mitigation Measures during the Construction Phase ...... 43 C. Anticipated Environmental Impacts and Mitigation Measures during Operation Phase . 53 D. Positive Impacts during the Operation Phase ...... 63 VI. ANALYSIS OF ALTERNATIVES ...... 64 A. Subproject Rational ...... 64 B. Site location ...... 64 C. Overall Alternative Analysis ...... 65 VI. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION ...... 66 A. PRC and ADB Requirements for Disclosure and Public Consultation ...... 66 B. Project Information Disclosure ...... 66 C. Future Public Participation Activities ...... 74 VIII. GRIEVANCE REDRESS MECHANISM ...... 75 A. Introduction ...... 75 B. ADB’s GRM Requirements ...... 75 C. Current GRM Practices in the PRC ...... 75 D. Project Level GRM ...... 75 VIII. CONCLUSIONS ...... 78 Appendix I: Environmental Management Plan ...... 79

EXECUTIVE SUMMARY

A. Introduction

1. This initial environmental examination (IEE) report has been prepared for the proposed Xi’an High-tech New Town Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project in Shaanxi Province of the People’s Republic of China (PRC). The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

2. The subproject is located Xi’an High-tech Zone. The subproject is divided into two components- Weidou Road component (with an area of 52,963.8 m2) and Chang’an Industrial Park component (with a land area of 73,294.28 m2). The subproject will mainly provide service to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas. Weidou Road component provides warehouse and logistics service to the Park through establishment of smart logistics base. Location of Chang’an Industrial Park component has a well- developed road network, and a convenient transportation and good transportation conditions. Thus, it aims to develop a logistics center to support the nearby enterprises.

3. The subproject can effectively promote the development of the local economy. The subproject will deliver significant positive social impacts. Once operational , the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional economy development and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

B. Policy, Legal and Administrative Framework for Environmental Impact Assessment

4. The environmental impact assessment (EIA) system has been established in China for more than 40 years. As the domestic EIA is based on environmental laws and regulations, the subproject is assessed in a comprehensive or focused manner according to relevant guidelines, and the impact mitigation measures are proposed so as to ensure the subproject construction complies with national and local laws and regulations and will not cause significant environmental impacts.

5. At the same time, relevant environmental protection requirements are proposed in accordance with the Safeguard Policy Statement (SPS) 2009 of the Asian Development Bank (ADB) in the preparation of this report. All applicable requirements of the SPS 2009 have been addressed in the IEE.

C. Implementation Arrangements

6. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. Shaanxi Province Communication Investment Group Co. Ltd. (SPCIG) will be the subproject implementation entity (PIE) and responsible for implementing the 2 component and administering and monitoring contractors and suppliers.

D. Project Scope

7. The subproject is located Xi’an High-tech Zone. The subproject is divided into two components- Weidou Road component and Chang’an Industrial Park component. The subproject will mainly provide services to the established Zhongjiao Science and Technology Industrial Park.

8. Weidou Road component provides warehouse and logistic services to the Industrial Park through establishment of smart logistics base. Weidou Road component is located at the south of No. 19 Wei Road of Xi’an High-tech Zone, north of Weidou Road, east of No.38 Jing Road and west of No. 34 Jing Road. It covers two plots with a with a land area of 52,963.8 m2. The main contents of Weidou Road component include a storage area, a logistics area, a supplementary area and public facilities.

9. Location of Chang’an Industrial Park component has a well-developed road network, a convenient transportation and good transportation conditions. Thus, it aims to develop a logistics center to support the surrounding enterprises. Chang’an Industrial Park component is located at Yuejin Village, Wuxing Street of Xi’an High-tech Zone. Chang’an Industrial Park component has an area of 73,294.28 m2. The main contents include a storage area, a logistics area, a supplementary area and public facilities.

E. Construction Schedule

10. The total construction phase of the subproject will be approximately 2 years.

F. Description of the Environment

Location and Topography

11. Xi'an is the capital of Shaanxi Province and a sub-provincial city in northwest China. It is one of the oldest cities, the oldest prefecture capital and one of the Four Great Ancient Capitals in China, having held the position under several of the most important dynasties in Chinese history, including Western Zhou, Qin, Western Han, Sui, and Tang Dynasty. Xi'an is the starting point of the Silk Road and home to the Terracotta Army of Emperor Qin Shi Huang.

12. Xi’an is situated in the “Guanzhong Plain” (known as the “800-mile basin”) which is the alluvial plain of the Weihe, Jinghe and Luohe Rivers with deep, fertile soil and rich agricultural production. Bordering the plain are the Qinling Mountain range in the south and Weibei Terrace region in the north, both of which contain abundant coal, metal and other non-metal mineral resources and various natural resources.

13. Xi’an City is located at the south edge of the central part of the Weihe graben basin between Qinling Mountains in the south and Weihe River in the north on thick Tertiary and Quaternary unconsolidated deposits. The terrain is higher in the southeast and lower in the northwest, presenting a stepped decline along this gradient. Xi’an City has a flat relief at an altitude of 400 m.

14. The subproject will be at Xi’an High-tech Zone. The Xi’an High-tech Zone is located in the southwest of Xi'an and is adjacent to the Northern Qinling Mountain in the south and urban area of Xi’an City in the north. The terrain of the zone is mainly loess table and the subproject site are 3 generally flat with an altitude of 400 meters.

Meteorology and Climate

15. Xi'an has a temperate climate that is influenced by the East Asian monsoon, and is classified under the Köppen climate classification as situated on the borderline between a semi- arid climate (BSk) and humid subtropical climate (Cwa). The Wei River valley is characterized by hot and humid summers, cold and dry winters, and dry springs and autumns. Most of the annual precipitation is delivered from July to late October. Snow occasionally falls in winter, but rarely settles for long. Dust storms often occur during March and April as the city rapidly warms up. Summer months also experience frequent but short thunderstorms. The monthly 24-hour average temperature ranges from around the freezing mark in January to 27.0°C in July, with an annual mean of 14.08°C. With monthly percent possible sunshine ranging from 31 percent in December to 47 percent in August, the city receives 1,536 hours of bright sunshine annually. Extremes since 1951 have ranged from −20.6°C on January 11, 1955 to 41.8°C on June 21, 1998. A highest record of 42.9 °C was registered on June 17, 2006.

Ecological and Sensitive Resources

16. The subproject has its surrounding area developed or planned as urban development zone. Based on the site visit and collected information, there are no known rare or endangered flora or fauna, species with international, national or provincial protection status, areas of natural or critical habitat, 1 parks, nature reserves, or areas with special national, regional or local ecological significance within or adjacent to any of the component site. There are also no known drinking water sources, scenic sites, or sites with Physical Cultural Resources (PCRs) based on site surveys and literature review.

Socioeconomic Conditions

17. In 2019, gross domestic product (GDP) of Xi'an was 932.119 billion yuan, of which the primary sector accounted for 3.0% or CNY 27.913 billion; the secondary sector accounted for 34.0% or CNY 316.744 billion; and the tertiary sector accounted for 63.0% or CNY 587.462 billion Yuan. The GDP per capita was 92,256 CNY.

18. The Xi’an High-tech Zone, established in March 1991, was approved by the State Council as first batch of National High-tech Zone. In 2018. GDP of Xi’an High-tech Zone was157.696 billion CNY and income was 1626.041 billion CNY.

G. Environmental Impacts and Mitigation Measures

19. Anticipated positive and negative environmental impacts of the subproject were assessed based on the domestic Feasibility Study Report (FSR), domestic environmental impact assessment (EIA) registration form; public consultations led by PIE and assisted by ADB technical assistance (TA) consultants; and site visits, surveys and consultations undertaken by PIE and

1 Natural habitat is land and water areas where the biological communities are formed largely by native plant and animal species, and where human activity has not essentially modified the area’s primary ecological functions. Critical habitat are areas with high biodiversity value, including habitat required for the survival of critically endangered or endangered species; areas having special significance for endemic or restricted-range species; sites that are critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or that are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic, or cultural importance to local communities (Environment Safeguards: A Good Practice Sourcebook, ADB, 2012).

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ADB TA consultants.

20. Pre-construction, construction phase and operation phase of the subproject were assessed, respectively. As the assessment results indicate that the environmental impacts are limited in the pre-construction stage and are mostly associated with ensuring appropriate incorporation of mitigation measures into the subproject design.

21. Potential negative environmental impacts during construction phase are short-term and localized, and are associated with soil erosion, solid waste, wastewater, construction noise, fugitive dust, disruption of traffic and community services, and risks to workers and community health and safety. These can be effectively mitigated through good construction and health and safety practices

22. Potential negative impacts during operation phase are associated with air pollution from vehicles, solid waste, wastewater, noise, and health and safety risks to workers and community. These can be effectively mitigated through good operation of the subproject and health and safety practices.

23. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

H. Alternative Analysis

24. With the promotion of national and regional strategies such as Guanzhong Plain Urban Agglomeration Development Plan and China (Shaanxi) Pilot Free Trade Zone, Xi'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region.

25. Xi’an has a well-developed railway, highway, and aviation transportation network, and has become an important hub in northwest China. At present, Xi’an has air routes to all provincial cities in China. There are direct flights from Xi'an to many major cities in Asia, including Bangkok, Busan, Fukuoka, Hong Kong, Kuala Lumpur, Manila, Osaka, Sapporo, Singapore Seoul, and Taipei. As a tourist city, Xi'an has built expressways to Lintong, and , with well-maintained roads to famous scenic spots in suburban counties and to the north slope of the Qin Mountains. The National Expressway G108, 210, 211 and 312 passes through Xi’an City and of Xi’an City has a good highway transportation condition. Xi’an is classified as International Comprehensive Transport Hub by National Development and Reform Commission in 2018.

26. As a developing high-tech Zone, Xi’an High-tech Zone will require more and more modern advanced warehouses and logistic delivery service in the future. The subproject will mainly provide service to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas.

27. Implementation of the subproject will : (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality. It will also 5 provide valuable experience in developing logistics park to meet the increasing logistics demand.

I. Information Disclosure and Public Participation

28. This subproject is required to prepare an EIA registration form, which has been completed and disclosed to the public. The domestic EIA registration form can be found at the construction project’s environmental impact registration and filing system (http://113.140.66.230:4680/REG/f/announcement/announcementShow) with two registration numbers: 20196101000100001265 for Weidou Road component, 20196101000100001264 for Chang’an Industrial Park component. No public feedback was received during public information disclosure.

29. According to the requirements of ADB's SPS 2009, a public consultation meeting of this subproject was held in Xi’an High-tech Zone on November 8, 2019 and 23 nearby residents were invited to the meeting.

30. During the consultation, the PIE introduced relevant information such as project construction contents and construction site, and the EIA institute introduced the potential environmental impacts and mitigation measures during the construction and operation phases. While the participants believed that the subproject will improve their quality of life and provide more job opportunities to nearby residents.

31. During the consultation, a total of 23 questionnaires were distributed and 23 questionnaires were received. The questionnaires focused on potential environmental impacts and mitigation measures.

32. The overall support for the subproject is very strong. 87.0% of the respondents support construction of the subproject. 86.9.0% of the respondents believe that the subproject will promote local economic development. 91.3% believe that the subproject will improve the quality of life.

33. 73.9% of the respondents work and 52.2% of the respondents live within 5km of the subproject. 30.4% of the respondents indicated that they have already learned about relevant information of the subproject before the public consultation. 56.5% of the participants were female. The top three environment issues respondents identified in their neighborhoods to be ambient air (69.6%), noise (47.8%) and solid waste (34.8.0%). Dust (65.2%) and noise (39.1%) are identified as the top two issues during the construction phase. Air pollution and noise are identified as the top two issues during the operation phase. However, most participants also indicated that the impacts on the environment can be appropriately mitigated and accepted by the environment if relevant measures could be taken during the construction and operation phases.

34. Meaningful consultation will continue throughout detailed design, construction, and operation phases, including information disclosure by the PIE and posting of project information on village notice boards.

J. Grievance Redress Mechanism (GRM)

35. During the construction and operation phase of the subproject, the PIE will establish a Grievance Redress Mechanism (GRM) to receive and assist in the resolution of complaints. GRM includes procedures for accepting complaints, recording key information, and evaluating and responding to complaints within a reasonable time frame. Any concerns raised through GRM will be dealt with promptly and transparently without retaliation against the complainant.

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K. Environmental Management Plan (EMP)

36. The subproject has developed a comprehensive EMP to ensure the implementation of identified mitigation and management measures to avoid, mitigate and compensate for the expected adverse environmental impacts, the monitoring and reporting of monitoring indicators, and compliance with relevant environmental laws, standards and regulations in China, as well as SPS 2009. The EMP includes an environmental monitoring plan (EMoP) to monitor the environmental impacts and assess the effectiveness of mitigation measures, as well as capacity building and training programs focused on health, safety, and the environment. EMP is shown in Appendix 1.

L. Risk and Key Assurances

37. The PIE of the subproject has limited experience in ADB's projects. To assist in the effective implementation of the EMP, the PIE will appoint a full-time management staff member for environmental and social affairs, meanwhile employ part-time Loan Implementation Environmental Consultant (LIEC) if needed. Pre-construction preparation and related institutional responsibility have been included in the EMP. All staff members are required to receive training on ADB environmental safeguard requirements and EMP implementation.

M. Conclusion

38. Through the environmental assessment process, it is concluded that the subproject has: (i) selected appropriate site and technologies to build one modern logistics park ; (ii) identified potential negative environment impacts and established mitigation measures; (iii) received public support from the component beneficiaries and affected people; (iv) established project-level GRM procedures; and (v) prepared a comprehensive EMP including environmental management and supervision structure, environmental mitigation and monitoring plans, and capacity building and training.

39. Overall, any minimal adverse environmental impacts associated with the component can be prevented, reduced, or minimized through the appropriate application of mitigation measures. 7

I. INTRODUCTION

A. The Project

1. This IEE report has been prepared for the proposed Xi’an High-tech City Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

2. The subproject is located Xi’an High-tech Zone. The subproject is divided into two components- Weidou Road component and Chang’an Industrial Park component. The subproject will mainly provide services to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas.

3. Weidou Road component provides warehouse and logistics service to the Park through establishment of smart logistic base. It is located at the south of No. 19 Wei Road of Xi’an High- tech Zone, north of Weidou Road, east of No.38 Jing Road and west of No.34 Jing Road. It covers two plots with an area of 52,963.8 m2. The main contents include a storage area, a logistic area, a supplementary area, and public facilities.

4. Location of Chang’an Industrial Park component has a well-developed road network, a convenient transportation and good transportation conditions. Thus, its component aims to develop a logistics center to support the surrounding enterprises. The component is located at Yuejin Village, Wuxing Street in Xi’an High-tech Zone with an area of 73,294.28m2. The main contents include a storage area, a logistic area, a supplementary area, and public facilities.

5. The subproject can effectively promote the development of the local economy. The subproject will deliver significant positive social impacts. Once operational , the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional economy development and increase employment rates of local residents; and (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality

B. Introduction of Borrower

6. SPCIG will be the subproject implementation entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers.

7. SPCIG was founded on April 2017 with a registered capital of 10 billion CNY. The main business scope include investment and operation of enterprise; investment and operation of transportation infrastructure and related industries; asset management and operation; investment and operation of tourism industry; engineering management services; operation of highway service area; land consolidation and development; bidding agency; advertising design, production, agency, release; real estate development and management; property management; warehousing services and other business approved by authorities.

8. At the end of 2018, the company’s total assets were 34.3 billion CNY. The company has several subcompanies including Shaanxi Transportation Industry Development Co., Ltd., Shenpan Highway Project Management Office, Shaanxi Transportation Advertising Media Co., Ltd., Shaanxi Shentong

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Road Industry Development Co., Ltd., and shares in Shaanxi Railway Group Co., Ltd., and Northwest International Cargo Aviation Co., Ltd

C. Report Purpose

9. Based on ADB's SPS 2009, this subproject has been classified as environmental Category B and thus an IEE including an EMP is required. This report, including the EMP is prepared following both national regulations and ADB’s environmental safeguard requirements specified in SPS 2009. The EMP is presented in Appendix I.

D. Approach to Report Preparation

10. This report has been prepared based on a domestic FSR; domestic EIA registration form; public consultations led by PIE and assisted by ADB TA consultants; site visits, surveys and consultations undertaken by PIE and ADB TA consultants; public consultations with key stakeholders and affected persons; site visits, surveys, consultations undertaken by ADB TA environmental consultants; and ADB mission discussions with the EA, PMO, PIE and relevant government agencies.

E. Report Structure

11. This IEE report consists of an overview, nine chapters and an appendix. The structure of the report is as follows:

Executive Summary Summarizes the overall situation of the subproject.

I. General Introduction Introduces the components of the IEE, the purpose of the report, the method of preparation and the structure.

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK Presents environmental laws and institutional frameworks in PRC and ADB, development of domestic EIA reports, and applicable environmental policies and standards.

III. PROJECT DESCRIPTION Describes the scope, components, location, main features, implementation arrangements, budget and timing of the subproject.

IV. DESCRIPTION OF THE ENVIRONMENT Introduces relevant natural profiles, current environmental status and socio-economic conditions in the subproject area.

V. ANTICIPATED IMPACTS AND MITIGATION MEASURES Predicts the environmental impacts of the subproject construction and operation, and proposes mitigation measures.

VI. Analysis of Alternatives Presents an analysis of alternatives to determine the best way of achieving the component objectives while minimizing environmental and social impacts.

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VII. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION Introduces the procedures and contents of information disclosure, the process of public participation and the results of the survey, and the main ways of public participation in the later phase.

VIII. GRIEVANCE REDRESS MECHANISM Introduces the GRM for resolving complaints.

IX. CONCLUSIONS Presents conclusions drawn from the assessment and recommendations.

Appendix I Appendix I presents the EMP, including mitigation measures during pre-construction, construction and operation, EMoP, reporting requirements, and capacity building.

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Location of Xi'an City in Shaanxi Province (scale: 1:7,000,000)

Yulin City

Yan’an City Yan’an City

Tongchuang City

Xianyang City City

Baoji City Xi’an- Railway Xi’an City City Railway Station City City Xi’an-Baoji Railway Xi’an North Railway Station Lishan Mountain Xianyang West Railway Station Xi’an Railway Station - Horgos Expressway

Weidou Road Component Chang’an Industrial Park Component Xi’an High-tech Zone Xi’an South Railway Station Xi’an High-tech Zone New Xi’an South Railway Station Xi’an-Ankang Railway

Beijing- Expressway Zhongnanshan Mountain Ziwukou Mountain

Figure I-1: Location of the subproject 11

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Applicable ADB Policies, Regulations and Requirements

12. The main applicable ADB policies, regulations, requirements and procedures for environmental assessment are the SPS 2019 and the Environmental Safeguards – A Good Practice Sourcebook (2012), which jointly provide the legal basis for this IEE. The SPS 2009 promotes good international practices, as reflected in internationally recognized standards such as the World Bank (WB) Group's Environmental, Health and Safety (EHS) Guidelines.

13. The SPS 2009 establishes an environmental review process to ensure that projects undertaken as part of programs funded through ADB loans are environmentally sound, designed to operate in line with applicable regulatory requirements, and not likely to cause significant environment, health, social, or safety hazards.

14. At an early phase in the project cycle, typically the project identification phase, ADB screens and categorizes proposed projects based on the significance of potential project impacts and risks. A project’s environment category is determined by the category of its most environmentally sensitive component, including direct, indirect, induced, and cumulative impacts. Project screening and categorization are undertaken to:

i) Reflect the potential environmental impacts of the project;

ii) Identify the type and level of environmental impact assessment and institutional resources proportionate to the nature, scale, magnitude and sensitivity of the potential impacts of the proposed project; and

iii) Determine the requirements for information disclosure and public participation.

15. SPS 2009 assigns a proposed project to one of the four following categories:

i) Category A. Proposed project is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented; impacts may affect an area larger than the sites or facilities subject to physical works. A full EIA including an EMP is required.

ii) Category B. Proposed project’s potential environmental impacts are less adverse and fewer in number than those of category A projects; impacts are site-specific, few if any of them are irreversible, and impacts can be readily addressed through mitigation measures. An IEE, including an EMP, is required.

iii) Category C. Proposed project is likely to have minimal or no adverse environmental impacts. No EIA or IEE is required although environmental implications need to be reviewed.

iv) Financial intermediaries. Proposed project involves the investment of ADB funds to, or through, a financial intermediary.

16. According to the requirements of SPS 2009, this subproject has been classified as environment category B, thus an IEE is required.

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B. PRC Environmental Legal Framework

17. The EIA system of the PRC is integrated into the system of environmental protection laws and regulations. The system is based on the provisions of the Constitution of the People's Republic of China on environmental protection, with the basic principles of comprehensive links as the core and related laws on environmental protection as supplements, therefore working as a complete and relatively independent legal and regulatory system consisting of a number of mutually compatible environmental protection laws, regulations, rules, standards and international treaties.

Table II-1: Applicable environmental laws and regulations to this subproject No. Law Year of Issue 1 Environmental Protection Law of the People's Republic of China 2015 Law of the People's Republic of China on Appraising of Environment 2 2018 Impacts Law of the People's Republic of China on the Prevention and Control of 3 2018 Atmospheric Pollution Law of the Republic of China on the Prevention and Control of 4 People’s 2018 Water Pollution Law of the People's Republic of China on the prevention and control of 5 2016 environmental pollution by solid waste Law of the People's Republic of China on Prevention and Control of 6 2018 Pollution from Environmental Noise 7 Law of the People's Republic of China on the Protection of Wildlife 2016 8 Law of the People’s Republic of China on Urban and Rural Planning 2008 Law of the People's Republic of China on the prevention and control of 9 2019 soil pollution National and local regulatory regulations Regulations on the Administration of Construction Project Environmental 10 2018 Protection Regulations of the People's Republic of China on the protection of wild 11 2015 plants 12 Regulations of the People's Republic of China on Wild Plants Protection 2016 Regulation of the People's Republic of China on the Disclosure of 13 2019 Government Information Notice of the State Council on Printing and Distributing the Three-Year 14 2018 Action Plan for Winning the Blue Sky Defense War Notice of the State Council on Printing and Distributing the Action Plan 15 2015 for Water Pollution Prevention and Control Notice of the State Council on Printing and Distributing the Action Plan 16 2016 for Soil Pollution Prevention and Control

17 Shaanxi Province Regulations on Air Pollution Prevention and Control 2019

Shaanxi Province Regulations on Solid Waste Pollution Environment 18 2019 Prevention and Control

19 Xi’an Administrative Measures for the Classification of Domestic Waste 2019 13

Departmental rules Classified Management Directory of Construction Project Environmental 20 2018 Impact Assessment 21 Public Participation in Environmental Impact Assessment 2019 Source: ADB TA consultants

C. PRC Environmental Impact Assessment Framework and Procedures

1. Relevant requirements for domestic EIA

18. The Classified Management Directory of Construction Project Environmental Impact Assessment (amended in 2018) issued by the former Ministry of Environmental Protection stipulates which projects are required to prepare EIA reports, which projects are required to prepare a simplified tabular EIA report, and which projects are only required to fill out the EIA registration form. The Directory regulates:

i) Category A: Projects with significant adverse environmental impacts, for which a full EIA report is required;

ii) Category B B: Projects with adverse environmental impacts which are of a lesser degree and/or significance than those of Category A, for which a simplified tabular EIA report is required; and

iii) Category C: Projects unlikely to have adverse environmental impacts, for which an EIA registration form is required.

19. A full EIA report for Category A and a simplified tabular EIA report for Category B are similar to ADB's EIA report and IEE report. A simplified tabular EIA registration form is similar to ADB's Category C project.

20. The Ministry of Ecology and Environment (MEE) of the PRC has promulgated a series of technical guidelines for the preparation of EIA (Table II-2). These guidelines include guidelines for conducting EIA, including atmospheric environment, sound environment, surface water, groundwater, and ecological impacts.

Table II-2: EIA Technical Guidelines No. Name Code/Year of Issue

Technical Guidelines for Environmental Impact Assessment of 1 HJ2.1-2016 Construction Project- General Programme Technical Guidelines for Environmental Impact Assessment- 2 HJ2.2-2018 Atmospheric Environment Technical Guidelines for Environmental Impact Assessment- Surface 3 HJ/T2.3-2018 Water Environment Technical Guidelines for Environmental Impact Assessment- 4 HJ610-2016) Groundwater Environment

5 Technical Guidelines for Noise Impact Assessment HJ2.4-2009

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Technical Guidelines for Environmental Impact Assessment 6 HJ19-2011 Ecological Impacts Source: ADB TA consultants

2. Procedures of domestic EIA

21. According to the Classified Management Directory of Construction Project Environmental Impact Assessment, this subproject belongs to "49, transportation, pipeline transportation and warehousing industry-180 warehousing (excluding oil depots, gas storage, coal storage)" (not included in warehousing and logistics distribution projects of toxic, hazardous and dangerous goods), therefore it is only required to register the EIA registration form in the construction project’s environmental impact registration and filing system (http://113.140.66.230:4680/REG/) to complete the registration without administrative approval. At present, the registration of the registration form of this subproject has been completed (registration number: 20206101000600000001), the registration status is shown in Figure II-1.

Figure II-1: Documented information of EIA registration form

D. Relevant International Agreements

22. The PRC has signed a number of international agreements regarding environmental and biological protection. Those which have potential application to the subproject are listed in Table II-4.

Table II-3: Relevant international agreements No. Agreements Year of Issue

Convention Concerning the Protection of the World Cultural and Natural 1 1986 Heritage

Convention Concerning the Protection of the World Cultural and Natural 2 1993 Heritage

3 UN Framework Convention on Climate Change 1994

United Nations Convention to Combat Desertification in Those Countries 4 1996 Experiencing Serious Drought and/or Desertification 15

5 Kyoto Protocol 2002 6 Stockholm Convention on Persistent Organic Pollutants 2004 7 Paris climate agreement 2015 8 Minamata Convention on Mercury 2017

E. Applicable PRC Environmental Standards

23. Environmental standards consist of environmental quality (ambient) standards applicable to the receiving environment and emission standards applicable to the pollution source. The former includes standards for ambient air quality, noise and vibration, surface water, groundwater, soil, etc. The latter includes standards for integrated wastewater discharge, waste gas discharge, etc.

Table II-4: Environmental Quality Standards of the PRC No. Standard Code/ Year of Issue 1 Ambient Air Quality Standards GB 3095-2012 2 Standard for Ground Water Quality GB/T14848-2017 3 Environmental Quality Standards for Surface Water GB 3838-2002 4 Environmental Quality Standard for Noise GB 3096-2008 Soil Environmental Quality- Risk Control standards for Soil 5 GB 36600-2018 Contamination of Development Land 6 Noise Emission Standards at Construction Site Boundary GB 12523-2011 7 Emission Standards for Industrial Enterprises Noise at Site Boundary GB 12348-2008 8 Emission standards for Odor Pollutants GB 14554-93 9 Integrated Emission Standards for Air Pollutants GB 16297-1996 10 Integrated Wastewater Discharge Standard GB 8978-1996 11 Emission Standards for Community Noise GB 22337-2008 12 Standard of Environmental Vibration in Urban Area GB 10070-88 Technical Specifications for Regionalizing Environmental Noise 13 GB/T 15190-2014 Function

24. As noted above, ADB’s SPS 2009 requires borrowers to follow environmental standards consistent with good international practice as reflected in internationally recognized standards such as the WB Group’s EHS Guidelines. When host country regulations differ from these levels and measures, the borrower is to achieve whichever is more stringent. If less stringent levels or measures are appropriate in view of specific project circumstances, the borrower/client is required to provide justification for any proposed alternatives. Both PRC standards and EHS guidelines are used in this assessment as described below.

16

1. Ambient air standards

(1) Ambient air quality standards

25. The current PRC Air Quality Standards (GB3095-2012) divides the functions of ambient air into two categories: the first category refers to natural reserves, scenic spots and other areas that require special protection; the second category refers to residential areas, mixed areas of commercial, traffic and residential functions, cultural areas, industrial areas and rural area. The first category implements the Class I standard, and the second category implements the Class 2 standards. This subproject is located in the urban industrial zone, therefore belongs to the second category, and implements the Class II standard.

26. The WHO Air Quality Guidelines are recognized as international standards and are adopted by the WB Group’s EHS Guidelines. In addition to guideline values, interim targets (IT) are given for each pollutant by the WHO as incremental targets in a progressive reduction of air pollution. The WHO guidelines and corresponding PRC standards are presented in Table II-5.

Table II-5: PRC Ambient Air Quality Standards and WHO Ambient Air Quality Guidelines, μg/m3

PRC Ambient Air Quality WHO/EHS criterion Air Quality Averaging Standard parameter phase Air quality Class I Class II Interim Targets guideline

annual 80 200 NA NA TSP 24-hour 120 300 NA NA

annual 40 70 30-70 20 PM10 24-hour 50 150 75-150 50

annual 15 35 15-35 10 PM2.5 24-hour 35 75 37.5-75 25

annual 20 60 NA NA

SO2 24-hour 50 150 50-125 20

1-hour 150 500 NA NA

annual 40 40 NA 40

NO2 24-hour 80 80 NA NA

1-hour 200 200 NA 200

8-hour 100 160 160 100 O3 1-hour 160 200 NA NA 17

24-hour 4,000 4000 NA NA CO 8-hour 10,000 10000 NA NA Source: WHO Air Quality Guidelines (2006) in IFC EHS Guidelines (2007), and PRC GB 3095-2012

27. From a review of Table II-5, it can be observed that:

28. For TSP and CO, there are PRC standards but no corresponding WHO guidelines. For PM10 and PM2.5, PRC Class 2 annual average and 24-hour average standards meet WHO Interim IT-1 guidelines.

3 29. For SO2, WHO only has a 24-hour average guideline (125 μg/m ), which is slightly stringent 3 than the PRC standard (150μg/m ). However, SO2 levels are low in the component area, and the component will only contribute low levels of SO2, so the very minor difference is inconsequential.

30. For NO2, there is no WHO 24-hour average guideline; and the 1-hour average PRC standard is equivalent to the WHO guideline.

31. For O3, the PRC Class I 1-hour average standard is equivalent to the WHO 1-hour average guideline and PRC 24-hour average class II standard is equivalent to the WHO Interim guideline 1 (IT-1).

32. Overall, the PRC standards show a high degree of equivalency to the WHO guidelines or IT-1 values and are adopted for use in this report except 24-hour average SO2 WHO guideline value.

(2) Air pollutant emission standards

33. Dust is controlled according to The Limit of Fugitive Dust Emissions from Construction Sites (DB61/1078-2017). The standard values are shown in Table II-6.

Table II-6: The Limiting Value of Fugitive Dust Emissions from Construction Sites (unit: mg/m3) Hourly average Monitoring No. Pollutants Construction phase concentration limit points (mg/m3)

Construction dust Demolition, earthwork, and 1 The highest ≤0.8 (i.e. total foundation treatment works concentration suspended solids Foundation, main structure, and 2 at boundary ≤0.7 TSP) decoration engineering The highest concentration outside the boundary should generally be set within 10m outside the boundary of the wind direction under the fugitive emission source. If the maximum landing concentration of fugitive emissions is expected to exceed the 10m range, the monitoring point can be moved to the vicinity of the highest expected concentration. Source: ADB TA consultants

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(3) Cooking Fume Emission Standards

34. The subproject will have a canteen during operation. Cooking fume from the canteen will follow Emission standard of Cooking Fume (GB18483-2001) as presented in Table II-7.

Table II-7: Emission standard of cooking fume (unit: mg/m3)

Small Medium Large Number of ovens is Capacity Number of ovens is Number of ovens is no less than 6 and no less than 3 less than 6 less than 3 Emission 2.0 concentration(mg/m3) Minimum cooking fume removal 60 75 85 efficiency (%)

2. Integrated wastewater discharge standards

35. The EHS Guidelines indicate that wastewater discharged to public or private wastewater treatment systems should: i. meet the pretreatment and monitoring requirements of the sewer treatment system into which it discharges; ii. not interfere, directly or indirectly, with the operation and maintenance of the treatment systems, or pose a risk to worker health and safety, or adversely impact characteristics of residuals from wastewater treatment operations; and iii. be discharged into municipal or centralized wastewater treatment systems that have adequate capacity to meet local regulatory requirements for treatment of wastewater generated from the project.

36. The domestic wastewater generated by the subproject will be pretreated by the septic tank and discharged to the municipal sewage system. The wastewater discharges by the subproject will be required to meet Class III maximum acceptable concentrations (MACs) in Integrated Standards for Wastewater Discharge (GB8987-1996), and the Municipal Wastewater Treatment Plant (WWTP) discharges are required to meet Class 1A of Discharge Standard of Pollutants for WWTPs (GB 18918-2002). The Standards are shown in Table II-8.

Table II-8: Integrated Standards for Wastewater Discharge (Unit mg/L) Maximum acceptable concentration (MAC) mg/L No. Pollutant Class C 1 pH 6-9 2 SS 400 3 COD 500

4 BOD5 300 5 Petro 20 6 Animal and vegetable oil 100 Source: ADB TA consultants 19

3. Surface Water

15. PRC’s Surface Water Ambient Quality Standard (GB3838-2002) defines five water quality categories for different environmental functions. For example, Category I is the best, such as water at sources of rivers and National Nature Reserves. Category V is the worst quality, suitable only for agricultural and scenic water uses. Based on information collection and site visit, Category V water quality standard (see Table II-9) is applicable for the surface water near the subproject site. There are no applicable EHS guidelines or target for water quality in this context, and the PRC standard is adopted for use in this IEE report.

Table II-9: Applicable surface water standard (Unit: mg/l) Water Quality Category No. Parameter I II III IV V 1 pH 6-9 6-9 6-9 6-9 6-9 90% 2 Dissolved Oxygen saturation ≥6 ≥5 ≥3 ≥2 or ≥7.5

3 CODMn ≤2 ≤4 ≤6 ≤10 ≤15

4 CODCr ≤15 ≤15 ≤20 ≤30 ≤40

5 BOD5 ≤3 ≤3 ≤4 ≤6 ≤10

6 NH3-N ≤0.15 ≤0.5 ≤1.0 ≤1.5 ≤2.0

TP ≤0.02 ≤0.1 ≤0.2 ≤0.3 ≤0.4 7 For lakes and ≤0.01 ≤0.025 ≤0.05 ≤0.1 ≤0.2 reservoirs TN (N for lakes and 8 ≤0.2 ≤0.5 ≤1.0 ≤1.5 ≤2.0 reservoirs) 9 Copper ≤0.01 ≤1.0 ≤1.0 ≤1.0 ≤1.0

10 Zinc ≤0.05 ≤1.0 ≤1.0 ≤2.0 ≤2.0

11 Fluoride ≤1.0 ≤1.0 ≤1.0 ≤1.5 ≤1.5

12 Selenium ≤0.01 ≤0.01 ≤0.01 ≤0.02 ≤0.02

13 Arsenic ≤0.05 ≤0.05 ≤0.05 ≤0.1 ≤0.1

14 Total Mercury ≤0.00005 ≤0.00005 ≤0.0001 ≤0.001 ≤0.001

15 Cadmium ≤0.001 ≤0.005 ≤0.005 ≤0.005 ≤0.01 Hexavalent 16 ≤0.01 ≤0.05 ≤0.05 ≤0.05 ≤0.1 Chromium 17 Lead ≤0.01 ≤0.01 ≤0.05 ≤0.05 ≤0.1

18 Cyanide ≤0.005 ≤0.05 ≤0.2 ≤0.2 ≤0.2

20

19 Volatile Phenol ≤0.002 ≤0.002 ≤0.005 ≤0.01 ≤0.1

20 Sulfide ≤0.05 ≤0.1 ≤0.2 ≤0.5 ≤1.0

21 Petroleum ≤0.05 ≤0.05 ≤0.05 ≤0.5 ≤1.0 Anionic 22 ≤0.2 ≤0.2 ≤0.2 ≤0.3 ≤0.3 surfactant 23 Coliforms ≤200 ≤2000 ≤10000 ≤40000 ≤40000

CODMn = permanganate index; CODcr = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NH3- N= ammonia nitrogen; TP = Total Phosphorus; TN = Total Nitrogen. Source: PRC GB3838-2002.

4. Ground Water

16. PRC’s Groundwater Water Quality Standards (GB/T14848-2017) also defines a number of water quality categories for different environmental functions. As shallow groundwater near the subproject site is primarily used for irrigation, Category III standard is applicable (Table II-10). There is no equivalent standard recommended in the EHS Guidelines, and the PRC standard is adopted for use in this IEE report.

Table II-10: Applicable Groundwater Standards No. Parameter Unit Category III Standard

1 pH - 6.5-8.5

2 CODMn mg/l 3.0

3 Sulfate mg/l 250

4 Chloride mg/l 250

5 Volatile Phenols mg/l 0.002

6 Total hardness (CaCO3) mg/l 450

7 Nitrate NO3- mg/l 20

8 Nitrite NO2- mg/l 1.0

9 NH3-N mg/l 0.5

10 Molybdenum mg/l 0.2

11 Cyanide mg/l 0.05

12 Cadmium mg/l 0.005

13 Chromium VI mg/l 0.05

14 Arsenic mg/l 0.01 21

No. Parameter Unit Category III Standard

15 Zinc mg/l 1.0

16 Fluoride mg/l 1.0

17 Lead mg/l 0.01

18 Iron mg/l 0.3

19 Manganese mg/l 0.1

20 Copper mg/l 1.0

21 Selenium mg/l 0.01

22 Benzene mg/l 0.01

23 Methylbenzene mg/l 0.7

24 Total coliforms /L 3.0

25 Colony forming unit /L 100

26 Mercury mg/l 0.001

27 Total dissolved solid mg/l 1000

CODMn = permanganate index; CODcr = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NO3- = Nitrate; NO2- = Nitrite; NH3-N= ammonia nitrogen; TP = Total Phosphorus; TN = total nitrogen. Source: PRC GB/T14848-2017.

5. Noise standard

(1) Quality Standard for Acoustic Environment

37. The PRC Environmental Quality Standard for Noise (GB3096-2008) is compared with the relevant international standards of the WHO, which is shown in Table II-8. The categories within the standard are not directly comparable, but PRC Class 1 standard is equivalent to the WHO Class 1 standard. The PRC Class 2 standard is less stringent than the WHO Class 1 standard, and PRC Class 2 and Class 3 standards are more stringent than the WHO Class 2 standard. According to the Xi’an City Acoustic Environmental Function Zoning, this subproject is at Class 3 function zones where the Acoustic Environment Class 3 standard is implemented, that is, 65 dB(A) in the daytime and 50 dB(A) in the nighttime. Based on site visit, there are sensitive receptors nearby the subproject and Class 2 standard is applicable at sensitive receptors. The standards are shown in Table II-11.

22

Table II-11: Comparison between the PRC Environmental Quality Standards for Noise and International Guidelines International Standards PRC Standards Leq dB(A) One Hour Leq dB(A) Comparison Day Night Day Night Category 06-22h 22-06h 07-22h 22-07h 0 Areas needing extreme quiet, such 50 40 as special health zones 1 acoustic environment functional area: refers to the area where residential, medical and health, cultural and sports, scientific research55 45 and design, administrative office are the main functions, therefore it is necessary to keep quiet for all. The two are not 2acoustic environment functional directly zone: refers to the area where the comparable, but WHO Class I:WHO Class I: main functions are commercial finance the PRC Class- residential, residential, and market trade, or mixed area of 60 50 3 standard is institutional, institutional, commercial, traffic and residential more stringent r educational: 55 educational: 45 functions, therefore it is necessary to than the WHO keep quiet for the residential area. Class-2 WHO Class II:WHO Class II: standard. This 3 acoustic environment functional industrial, industrial, report adopts zone: refers to the area where commercial: 70 commercial: 70 the PRC industrial production, warehousing and standard for logistics are the main functions,65 55 evaluation. therefore it is necessary to prevent industrial noise from seriously affecting the surrounding environment. 4a acoustic environment functional zone: refers to the area within a certain area on both sides of the traffic trunk 70 65/55 line, therefore it is necessary to prevent traffic noise from seriously affecting the surrounding environment. Source: ADB TA consultants

(2) Noise Emission Standards for Industrial Enterprises Noise at Site Boundary

38. According to the PRC Noise Emission Standards for Industrial Enterprises at Site Boundary (GB12348-2008), the subproject’s boundaries are at Class 3 function zone, where Class 3 standard is implemented, that is, 65 dB(A) in the daytime and 50 dB(A) in the nighttime. Specific standard values are shown in Table II-12.

23

Table II-12: Noise Emission Standards for Industrial Enterprises at Site Boundary Unit: dB(A) Environmental functional zones at Daytime Nighttime enterprise boundary 06-22h 22-06h 0 50 40

1 55 45

2 60 50

3 65 55

4a 70 55 Source: ADB TA consultants

(3) PRC Noise Emission Standards at Construction Site Boundary

39. During the construction period, the noise impact assessment shall be carried out in accordance with the PRC Noise Emission Standards at Construction Site Boundary (GB12523- 2011), which limits construction noise levels at the construction site boundary to 70dB(A) in the daytime and 55dB(A) in the nighttime. Specific standards are shown in Table II-13.

Table II-13: PRC Noise Emission Standards at Construction Site Boundary Unit: dB(A) Day Leq dB(A) Night Leq dB(A)

70 55 Source: ADB TA consultants

24

III. PROJECT DESCRIPTION

A. The Project

40. The subproject is located Xi’an High-tech Zone. The subproject is divided into two components- Weidou Road component and Chang’an Industrial Park component. The subproject will provide services to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas.

41. Weidou Road component provides warehouse and logistics service through establishment of smart logistics base. The main contents include a storage area, a logistics area, a supplementary area, and public facilities.

42. Location of Chang’an Industrial Park component has a well-developed road network, a convenient transportation and good transportation conditions. Thus, it aims to develop a logistics center to support the surrounding enterprises. The main contents include a storage area, a logistics area, a supplementary area, and public facilities.

B. Geographical Location

43. Weidou Road component is located at the south of No. 19 Wei Road of Xi’an High-tech Zone, north of Weidou Road, east of No.38 Jing Road and west of No.34 Jing Road. It covers two plots with a with an area of 52,963.8 m2. Chang’an Industrial Park component is located at Yuejin 25

Village, Wuxing Street in Xi’an High-tech Zone with an area of 73,294.28 m2.

Xi’an High Tech Zone

Software Park

BYD industrial park New industrial park New material industrial park Weidou Road Component CCCC Science and Technology City Central innovation district

Samsung bonded zone Component Xidian University Chang’an Industrial Park Future Science-Tech City Component

Chang’an Communication Industry Park New Energy Automobile Industry Base

BYD industrial park

Figure III-1: Subproject location in Xi'an

44. Surroundings of the subproject location is shown in Figure III-2. The Xi'an High-tech Zone has a well-developed road network. Weidou Road Component is surrounded by Weidou Road, Xibu Road and Jing-Kun national expressway. Chang’an Industrial Park Component is surrounded by Xi-Tai Road, National 210 Road, Xi-Xian Road and Jing-Kun national expressway. These roads provide a good transportation conditions to the subproject.

26

Yan’an- Xi’an Expressway

Yinchuan- Baise Expressway

Fujian- Expressway

Lianyungang- Horgos Expressway

Lianyungang- Horgos Expressway

Shanghai-Xi’an Expressway

Chang’an Industrial Park Weidou Road Component Component

Beijing-Kunming Expressway -Maoming Expressway

Figure III-2: Surrounding Network of Roads

C. Project Rational

45. With the promotion of national and regional strategies such as Guanzhong Plain Urban Agglomeration Development Plan and China (Shannxi) Pilot Free Trade Zone, Xi'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region.

46. Xi’an has a well-developed railway, highway and aviation transportation network, and has become an important hub in northwest China. At present, Xi’an has air routes to all provincial cities in China. There are direct flights from Xi'an to many major cities in Asia, including Bangkok, Busan, Fukuoka, Hong Kong, Kuala Lumpur, Manila, Osaka, Sapporo, Singapore Seoul, and Taipei. As a tourist city, Xi'an has built expressways to Lintong, Tongchuan and Baoji, with well-maintained roads to famous scenic spots in suburban counties and to the north slope of the Qinling Mountain. The National Expressway G108, 210, 211 and 312 pass through Xi’an City and of Xi’an City has a good highway transportation condition. Xi’an is classified as International Comprehensive Transport Hub by National Development and Reform Commission in 2018.

47. Although Xi’an is an important hub in northwest China, there are still some bottlenecks and deficiencies in the development of the Xi'an warehousing and logistics industry. For example, the scale is small and the layout is scattered, especially the traditional manual operations are widely used in existing small and medium-sized logistics parks. In the high-tech zone, there is even a shortcoming of insufficient supply in the logistics park, and lack of market visibility and competitiveness. 27

48. As a developing high-tech Zone, Xi’an High-tech Zone will require more and more modern advanced warehouses and logistics delivery services in the future. The subproject will provide services to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas.

49. The subproject will provide a comprehensive and international logistics warehousing services, improve information collection, processing, and utilization of the logistics service as well as the overall planning and management of logistics services in Xi'an High-tech Zone.

50. Implementation of the subproject will : (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality. It will also provide valuable experience in developing logistics park to meet the increasing logistics demand.

E. Project Scope

51. Main contents of the Weidou Road component are presented in Table III-1 and Chang’an Industrial Park component is presented in Table III-2. . Selection of the tenants for office building and storage shall follow international best practice and the PRC standards and regulations, if applicable.

Table III-1 Main Contents of the Weidou Road component (Unit: m2) No. Facility Area No. Facility Area 1 Warehouse distribution area 74,338 3 Residential Facilities 21,500 1.1 Smart logistics area 50,730 3.1 Dormitory 8,600 1.1.1 No.1 building (19 floors) 23,307 3.2 Apartment 13,050 Business Development 1.1.2 No.2 building (5 floors) 6,393 4 40,869 Complex 1.1.3 No.3 building (5 floors) 6,783 4.1 Information building 20,435 Freight information publish 1.1.4 No.4 building (14 floors) 14,247 4.1.1 5,216 building Freight business receiving 1.2 E-commerce logistics area 11,328 4.1.2 3,476 building 1.2.1 No.9 building (5 floors) 5,664 4.1.3 Computer center 1,700 Freight information publishing 1.2.2 No.13 building (5 floors) 5,664 4.1.4 1,500 room 1.3 Supporting storage area 9,380 4.1.5 Control room 1,000 1.3.1 No.10 building (4 floors) 1,400 4.1.6 Management office 1,100 1.3.2 No.11 building (5 floors) 6,580 4.1.7 Office rooms 6,443 1.3.3 No.12 building (4 floors) 1,400 4.2 Training building 20,434 1.4 Bulky logistic area 2,900 4.2.1 Training conference room 5,216 1.4.1 No.14 building (2 floors) 1,450 4.2.2 Lab 5,216 1.4.2 No.15 building (2 floors) 1,450 4.2.3 Office for the enterprises 10,002 2 Office area 19350 5 Supplementary area 2832

28

2.1 Reception hall 1,075 5.1 Maintenance shop 1,100 2.2 Canteen 2,150 5.2 Guard room 50 2.3 Meeting room 2,150 5.3 Load and unload area 1,416 2.4 Office building 10,000 5.5 Other 266 2.5 Archives office 1,075 6 Parking area 45,876 2.6 Monitor room 1,075 7 Road 14,555 2.7 Other 1,825 8 Landscaping 1,001 Floor area 20,4765 Total area 52,963.8 Source: ADB TA consultants

Table III-2 Main Contents of the Chang’an Industrial Park component (Unit: m2) No. Facility Area No. Facility Area 1 Warehouse distribution area 97,390 2.1 Comprehensive service Hall 900 1.1 High standard logistics area 24,240 2.2 Canteen 500 1.1.1 No.4 building 11,040 2.3 Conference room 500 1.1.2 No.10 building 2,400 2.4 Office room 2,800 1.1.3 No.11 building 8,400 2.5 Other room 500 1.1.4 No.12 building 2,400 2.7 Dormitory 4,160 1.2 Trade and Logistic Area 43,850 3 Supplementary area 3,450 1.2.1 No.1 building 10,150 5.1 Maintenance shop 1,500 1.2.2 No.2 building 13,200 5.2 Guard room 100 1.2.3 No.3 building 6,350 5.3 Load and unload area 1,725 1.2.4 No.6 building 14,150 5.5 Other 125 1.3 Rural logistics area 29,300 6 Parking area 18,740 1.3.1 No.5 building 9,600 6.1 Ground parking area 3,011 1.3.2 No.8 building 10,100 6.2 Underground parking area 15,729 1.3.3 No.9 building 9,600 7 Road 21,760 2 Office area 9,360 8 Landscaping 1,327 Floor area 125,600 Total area 73294.28 Source: ADB TA consultants

52. Layout of the two components are presented in Figure III-3, Figure III-4 and Figure III-5.

29

Figure III-3: Layout of east part of Weidou Road component

Figure III-4: Layout of west part of Weidou Road component

30

Figure III-5: Layout of Chang’an Industrial Park component

F. Energy Consumption and Emissions

53. During operation phase, the estimated annual handling capacity will be 1 million tons. Annual water consumption will be 0.792 million tons and power consumption will be 39.618 million kWh. Urban district heating will be utilized by the subproject.

Table III-3: Throughput and Energy Consumption of the Subproject Throughput Water Electricity Name (10,000 t) (10,000 t / a) (10,000 kWh / a) Weidou Road component 40 49.1 2,457.2 Industrial Park Chang’an 60 30.1 1,504.6 component

54. The subproject will generate domestic wastewater during operation. The subproject will have180 staff during operation and daily water consumption will be 21.6 m3 and wastewater generation will be 17.3 m3. Domestic wastewater analysis data is presented in Table III-4. Domestic will be discharged to septic tank, then discharged to municipal sewer system and finally 31 treated in existing municipal WWTP.

55. The subproject will generate production wastewater during operation from vehicle washing. The wastewater will be treated by oil-water separator and recycled. The separated oil will be treated as hazardous waste.

Table III-4: Wastewater analysis data Annual Annual wastewater generation Concentration Component Pollutants generation (m3) (mg/L) quantity (t) COD 300 0.69 Weidou Road Ammonia 2,310 25 0.06 component nitrogen animal and 20 0.05 vegetable oils COD 300 0.86 Chang’an Industrial Park Ammonia 0.07 2,880 25 component nitrogen animal and 20 0.06 vegetable oils

56. The subproject will generate domestic waste and waste package materials during operation. The subproject will have 180 staff during operation and daily waster generation will be 0.18 tons. The annual waste package materials will be 1.0 tons.

57. Kitchen waste of the canteen mainly consists of leftovers and vegetable. There will be 180 staff using the canteen, and the kitchen waste generation is 5.4 t/a. Kitchen waste will be collected, transferred and disposed by a certificated third-party company.

58. Oily waste (from vehicle washing and maintenance) generated during vehicle cleaning and maintenance is classified as hazardous waste, which will be collected, transported, and treated by a certified 3rd party hazardous waste treatment company. Besides, a temporary hazardous waste storage will be built.

59. The subproject will generate air pollutants during operation which are mainly from the transportation vehicles. The annual emission of NOx, PM2.5 and CO2 emission will be 9.886 tons, 0.229 tons and 2,340.589 tons, respectively.

60. The subproject will generate cooking fume during operation from the canteen. The concentration of generated cooking fume is 0.25 mg/m3 and the discharged cooking fume is 0.06 mg/m3 after treatment. Daily emitted cooking fume is 24 g.

61. The subproject will generate noise during operation. The noise is mainly from the transportation vehicles and transfer equipment. With mitigation measures, the noise at the site boundaries and nearby sensitive receptors can meet relevant PRC standards.

62. The subproject will use coolants for cold storage during operation. Now the coolants have not been confirmed because design of the cold storage room is not finished yet. Only coolants with lower greenhouse gas impacts (e.g. “R32” or “R290”) and are not classified as ozone

32 depleting substance will be used in the subproject.

G. Implementation Arrangements

63. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. SPCIG will be the project implementation entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers.

64. The total construction phase of the subproject will be approximately 2 years.

H. Due Diligence for Associated and Existing Facilities

65. Due diligence was conducted to determine the presence and extent of associated and/or existing facilities at the project sites. Associated facilities are those which are not funded by the project and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project (SPS 2009: 31). The subproject does not include any associated facilities.

66. The subproject-funded facilities will be located and constructed within existing undeveloped construction land. Existing facilities and associated facilities are not identified. The subproject facilities will depend on existing municipal services for domestic water sources, and for disposal of wastewater and solid waste.

67. Water supply. The subproject will source domestic water from municipal water supply system from Xi’an High-tech Zone Caotang Water Supply Plant which sources water from groundwater. Domestic EIA for the Plant was approved in June 2011 (capacity 300,000 m3/day) and no compliance issues have been documented.

68. Wastewater treatment. Wastewater of the subproject will comprise domestic sewage (staff), which will be discharged to the Xi’an High-tech Zone Waste Water Treatment Plant (WWTP). Domestic EIA was approved in February 2015 with the capacity of 100,000 m3/day and no compliance issues have been documented.

69. Solid waste management. The subprojects will generate domestic waste, kitchen waste, oily waste and waste package materials during operation. Domestic waste will be collected by the local sanitary departments and treated at Xi’an Lantian waste incineration plant (EIA approved in May 2017; capacity 2,250 ton/day). The waste package materials will be sold to manufactures for recycling. Kitchen waste will be collected, transferred, and disposed by a certificated third-party company. Oily waste will be collected, transported, and treated by a certified third-party hazardous waste treatment company. Besides, a temporary hazardous waste storage will be built.

70. The due diligence confirms that all municipal facilities: (i) are operating in accordance with approved domestic EIAs and management plans; and (ii) for the water supply plant, landfill site, and WWTP, have the capacity to meet the project requirements. No past or present concerns related to impacts on the environment were identified. Based on this information, the due diligence described here is concluded to be adequate per ADB’s SPS requirements. 33

IV. DESCRIPTION OF THE ENVIRONMENT

A. Description of the Region

1. Shaanxi Province

71. Shaanxi Province is located in the northwestern part of China between 105°29′~111°15′ east longitude and 31°42′~39°35′ north latitude. Shaanxi is generally long from north to south and narrow from east to west. The distance from north to south is about 880 km and from east to west is about 160-490 km. The province runs across two major river basins-Yellow River Basin and Yangtze River Basin. It is bordered by the Autonomous Region to the north, province to the east, Henan and Hubei provinces to the southeast, municipality and Sichuan province to the south, Gansu province to the west, and the Hui Autonomous Region of Ningxia to the northwest. The Yellow River constitutes Shaanxi’s entire eastern border with Shanxi. Shaanxi is an important portal connecting New Eurasian Continental Bridge to northwest, southwest, north, and central China. Shaanxi is the province with the largest number of neighboring provinces in China. The easternmost point of Shaanxi Province is located in Huangpu Town, of Yulin City, the westernmost point is in Qingmuchuan Town, of Hanzhong City, the southernmost point is in Huaping Town, Zhenping County of Ankang City, and the northernmost point is in Gucheng Town and Fugu County of Yulin City.

72. Shaanxi is divided into ten prefecture-level divisions including one sub-provincial city- Xi’an. The ten prefecture-level divisions are subdivided into 30 prefecture-level cities, six county-level divisions and seventy-one counties.

73. In 2019, the population of the province was 38.76 million. The land area is 205,600 km2. In 2019, Shaanxi’s GDP was CNY 2,579.317 billion, of which the primary sector accounted for 7.8% or CNY 199.093 billion; the secondary sector accounted for 46.4% or CNY 1,198.075 billion; and the tertiary sector accounted for 45.8% or CNY 1,182.149 billion.

74. Due to its large span in latitude, Shaanxi has a variety of climates. Under the Köppen climate classification, the northern parts, including the Loess Plateau, have either a cold arid or cold semi-arid weather, with cold and very dry winters, dry springs and autumns, and hot summers. The area known as Guanzhong is mostly semi-arid, though there are a few areas with a humid subtropical climate, with cool to cold winters, and hot and humid summers that often see early- season heatwaves. The southern portion is much more humid and lies in the humid subtropical zone, with more temperate winters and long, hot, and humid summers. Annual mean temperature is roughly between 8 to 16°C, with January temperatures ranging from −11 to 3.5°C and July temperatures ranging from 21 to 28°C.

75. Shaanxi is considered one of the cradles of Chinese civilization. Thirteen feudal dynasties established their capitals in the province during a span of more than 1,100 years, from the Zhou Dynasty to the Tang Dynasty. The province's principal city and current capital, Xi'an, is one of the four great ancient capitals of China, and is the eastern terminus of the Silk Road, which leads to Europe, the Arabian Peninsula and Africa. Under the Han Dynasty, the Northern Silk Road was expanded to advance exploration and military purposes to the west. This Northern Silk Road is the northernmost of the Silk Road and is about 2,600 km in length. It connected the ancient Chinese capital of Xi'an to the west over the Wushao Ling Pass to Wuwei and emerging in before linking to ancient Parthia.

76. Shaanxi has abundant biological resources and outstanding diversity. Qinling and Bashan

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Mountain is known as "biological gene bank". The diversity of ecosystems, species, and genetic genes in Shaanxi is typical and representative in China and even in East Asia. The province's forest land area is 12.26665 million hectares which ranks 10th in the PRC, and the forest area is 8.533332 million hectares which ranks 11th in the PRC. The living wood growing stock in Shaanxi is 424 million m3, ranking 11th in the PRC. Natural forests are mainly distributed in Qinling, Bashan, Guanshan, Huanglong and Qiaoshan Mountains. The grasslands belong to temperate grasslands and mainly distributed in . The wildlife resources are abundant in Shaanxi. There are 604 species of terrestrial vertebrates and 380 species of birds. Among them, 16 species including panda, golden monkey, takin, and cymbals are listed as national first-class protected wilds animals.

2. Overview of Xi'an City

77. Xi'an, named Chang’an and Haojing in the ancient time, is the capital city of Shaanxi Province, important central city of west China, and an important national research, education and industrial base. Xi’an, as one of China's four ancient capitals, has been listed as “World Historic City" by UNESCO since 1981, and selected as one of the world's top ten ancient capitals by American media. Xi'an City is located in the Guanzhong basin at the central Weihe River basin, between 107.40°~109.49° east longitude and 33.42°~34.45° north latitude. It borders the Weihe River and the Loess Plateau in the north and the Qinling Mountain in the south. Its east is bounded by the Linghe River and the Wuyuan Mountain, and connected with Huaxian County, Weinan City, Shangzhou City and . Its west is bounded by Taibai Mountain and Qinghua Loess Platform, bordering Meixian County and . Its main ridge of the North Qinling Mountain is bordered by , and . It stretches to the Weihe River in the north, crosses the Weihe River in the northeast, and borders Xianyang City, as well as Sanyuan, Jiangyang, , Wugong, Fufeng and Fuping Counties (Cities). It is about 204 km long from east to west and about 116 km wide from north to south. The total area is 9,983 km2, of which the urban area is 1,066 km2. 35

Figure IV-1: Location of Xi'an in Shaanxi Province

78. In 2019, gross domestic product (GDP) of Xi'an was 932.119 billion yuan, of which the primary sector accounted for 3.0% or CNY 27.913 billion; the secondary sector accounted for 34.0% or CNY 316.744 billion; and the tertiary sector accounted for 63.0% or CNY 587.462 billion. Yuan. The GDP per capita was 92,256 CNY.

79. The Xi’an High-tech Zone, established in March 1991, was approved by the State Council as first batch of Xi’an National High-tech Zone. In 2018, GDP of Xi’an High-tech Zone was157.696 billion CNY and income was 1626.041 billion CNY.

80. Located in the middle of the Guanzhong Plain, Xi’an is one of the three international metropolises designated by China. In 2017, there were 3,246 immovable cultural relic sites and 392 cultural relic protection sites (including 52 national cultural relics protection sites, 105 provincial cultural relics protection sites, and 235 city and county-level cultural relics protection

36 sites) in Xi’an, including 2 world cultural heritage sites and 4 national archaeological parks. Xi’an has 126 museums, including 34 state-owned museums, 45 industry museums, and 47 non-state- owned museums.

B. Natural environment

(1) Geological features

81. Xi'an lies on the Guanzhong Plain in the south-central part of Shaanxi province, on a flood plain created by eight surrounding rivers and streams. The city has an average elevation of 400 m above sea level and an annual precipitation of 553 mm. The urban area of Xi'an is located at 34°16'N 108°56'E. The Wei River provides potable water to the city.

82. The city borders the northern foot of the Qinling Mountain to the south, and the banks of the Wei River to the north. Hua Shan, one of the five sacred Taoist mountains, is located 100 km away to the east of the city. Not far to the north is the Loess Plateau. The subproject is located on the first terrace of the south bank of the Weihe River. The subproject site is located at plain and the terrain is flat and open. The elevation of the subproject site is about 365~367m and there is no surface water body in the subproject area.

(2) Climate

83. Xi'an has a temperate climate that is influenced by the East Asian monsoon, and is classified under the Köppen climate classification as it is situated on the borderline between a semi-arid climate (BSk) and humid subtropical climate (Cwa). The Wei River valley is characterized by hot and humid summers, cold, and dry winters, and dry springs and autumns. Most of the annual precipitation is delivered from July to late October. Snow occasionally falls in winter, but rarely settles for long. Dust storms often occur during March and April as the city rapidly warms up. Summer months also experience frequent but short thunderstorms. The monthly 24- hour average temperature ranges from around the freezing mark in January to 27.0°C in July with an annual mean of 14.08°C. With monthly percent possible sunshine ranging from 31 percent in December to 47 percent in August, the city receives 1,536 hours of bright sunshine annually. Extremes since 1951 have ranged from −20.6°C on January 11, 1955 to 41.8°C on June 21, 1998. A highest record of 42°C was registered on June 17, 2006.The annual maximum temperature is around 40°C, while the minimum is around -8°C. The average frost-free phase lasts for 219-233 days. The dominant wind direction is northeast wind. The prevailing wind direction on the ground in Xi'an is northeast or east wind with annual average wind speed at 1.3 - 2.6m / s.

(3) Hydrology

84. There is no surface water in the subproject area. The groundwater in the subproject area is mainly quaternary pore phreatic water and the gravel layer is the main aquifer. The groundwater level is at 8.2~13 m and the groundwater level will be increased by 3-5 m in the rainy season.

(4) Formation lithology

85. The subproject is located in the alluvial plain of the Weihe River, which is covered by the quaternary loose accumulation layer. According to the surface survey and drilling, the stratum nearby the subproject area is mainly artificial accumulation and alluvial clay loess, sand soil and clay. 37

C. Ambient Environment Baseline

1. Environmental Monitoring of Acoustic Environment Quality

86. There are eight noise monitoring points distributed at the boundaries of two components. Details are shown in Table IV-1. Baseline environmental monitoring was conducted at the subproject site. A third-party environmental monitoring company-Shaanxi Provincial Traffic Environmental Monitoring Station Co., Ltd. was engaged to carry out the acoustic environment quality monitoring. The monitoring points are presented in the Figures IV-2 and IV-3 (yellow dots showing the monitoring points).

Table IV-1: Monitoring Points of the Noise at Plant Boundary No. Name of Point Noise at plant boundary Monitoring requirements

Four monitoring points are at the Continuous monitoring for 2 1 Weidou Road component east, west, south, and north days including daytime noise boundaries. and nighttime noise levels. The monitoring point is Four monitoring points are at the located 1m away from the Industrial Park 2 Chang’an east, west, south, and north boundary, and the point height Component boundaries. is 1.2m above the ground.

Source: ADB TA consultants

Figure IV-2: Noise Monitoring Location of Weidou Road Component

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Figure IV-3: Noise Monitoring Location of Chang’an Industrial Park Component

87. The monitoring was carried out at over a 48-hour period from November 12, 2019 to November 13, 2019. Weather conditions were sunny and cloudless with wind speed less than 5.0 m/s, which is in compliance with relevant PRC meteorological requirements for noise monitoring.

88. Monitoring was undertaken with multi-functional ambient noise detectors. Monitoring was undertaken in accordance with the relevant requirements in PRC Environmental Quality Standards for Noise (GB3096-2008).

89. Noise monitoring results are shown in Table IV-2.

Table IV-2: Noise Monitoring Results of Site Boundaries / unit: dB(A) Monitoring result Location of monitoring Main noise Applicable November 12, 2019 November 13, 2019 point source standards Daytime Nighttime Daytime Nighttime east 49 44 48 43 Domestic noise Class 3 Weidou Road west 53 44 53 44 Domestic noise Class 3 Component south 55 44 55 43 Domestic noise Class 3 north 48 43 49 43 Domestic noise Class 3 east 49 46 50 45 Domestic noise Class 3 Chang’an Industrial west 48 42 47 43 Domestic noise Class 3 Park Component south 56 44 55 43 Domestic noise Class 3 north 49 44 49 45 Domestic noise Class 3 39

90. According to the monitoring results, the noise levels at all the boundaries of the two components met the PRC Class 3 standard.

2. Ambient Air Quality

91. According to the Environmental Air Quality Status of Shaanxi Province from January to December 2019 issued by the Ecology and Environment Department of Shaanxi Province, the average annual concentration of PM10, PM2.5, SO2 and NO2 in Xi’an High-tech Zone in 2019 was 81 μg/m3, 46 μg/m3, 7 μg/m3 and 37 μg/ m3. The 24-hour average concentration of CO was 1.6 3 3 mg/ m , and the 8-hour average concentration of O3 was 157 μg/m . Concentrations of PM10 and PM2.5 exceed the Class II national limits. The data is presented in Table IV-3, which was obtained from the continuous automatic air quality monitoring station located at Xi’an High-tech Zone.

Table IV-3: Ambient Air Quality Monitoring data of Xi’an High-tech Zone, 2019 / Unit: μg/m3 3 Project PM10 PM2.5 SO2 NO2 CO (mg/m ) O3 (8 hours) Annual average 81 46 7 37 1.6 157 PRC standard 70 35 70 40 4 160 WHO standard 20 10 NA 40 NA 100 Source: Ecology and Environment Department of Shaanxi Province

Weidou Road Component

Automatic ambient air quality monitoring station Chang’an Industrial Park Component

Figure IV-4： Ambient air monitoring location near the subproject site

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D. Ecological Environment and Sensitive Receptors

1. Ecological environment

92. The geology, geomorphology, climate, hydrology, and soil types in Xi'an are diverse. Xi’an has a long history of human activities. Affected by both natural and social environment, Xi’an has a unique vegetation feature.

93. There are 66 families, 92 genera, 252 species and 7 varieties of seed plants in Xi'an city. There are 113 plants, 422 genera, 701 species and 80 varieties of seed plants in the south of Nanwutai Mountain, which is 26km away from the urban area. There are 121 families, 628 genera and about 1,550 species of seed plants at Taibai Mountain, the main peak of the Qinling Mountain. The seed plant species accounted for 40.20% of the total number of seed plants, 33.2% of the total genera, and 6.3% of the total species in the country. There are 138 families, 681 genera and 2,224 species of plants within the territory of the city. The natural vegetation and cultivated vegetation have clear boundaries. The Qinling Mountain are basically natural vegetation, while the Weihe Plain, the Lidongnan Hill and the Loess Tableland are cultivated vegetation. The distribution of the two vegetation areas is generally consistent with the landform area.

94. The subproject site is located in developed area and natural vegetation has been removed (Figure IV-6). Therefore, the ecological system at the subproject sites is mainly the urban ecosystem.

95. According to the on-site investigation and information collection, domestic EIA, site surveys, and records review, there are no known rare or endangered flora or fauna, species with international, national or provincial protection status, areas of natural or critical habitat, 12F parks, nature reserves, or areas with special national, regional or local ecological significance within or adjacent to any of the component site. There are also no known drinking water sources, scenic sites, or sites with Physical Cultural Resources (PCRs) based on both sites surveys and literature review.

Chang’an Industrial Park Component Chang’an Industrial Park Component 41

Weidou Road Component Weidou Road Component Figure IV-5: Subproject Site Conditions

2. Sensitive Receptors

96. The subproject is located in the Xi’an High-tech Zone and there is no sensitive receptor in a radius of 2,000m of the subproject sites.

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V. ANTICIPATED IMPACTS AND MITIGATION MEASURES

97. Anticipated positive and negative environmental impacts of the subproject were assessed based on the domestic FSR, domestic EIA registration form; public consultations led by PIE and assisted by ADB technical assistance (TA) consultants; and site visits, surveys and consultations undertaken by ADB TA consultants.

98. Pre-construction, construction and operation phase of the subproject were assessed, respectively. As the assessment results indicate that the environmental impacts are limited in the pre-construction stage and are mostly associated with ensuring appropriate incorporation of mitigation measures into the project design.

99. Potential negative environmental impacts during construction phase are short-term and localized, and are associated with soil erosion, solid waste, wastewater, construction noise, fugitive dust, disruption of traffic and community services, and risks to workers and community health and safety. These can be effectively mitigated through good construction and health and safety practices.

100. Potential negative impacts during operation phase are associated with air pollution from vehicles, solid waste, wastewater, noise, and health and safety risks to workers and community. These can be effectively mitigated through good operation of the subproject and health and safety practices

101. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; and (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

A. Environmental Impacts in the Pre- construction Phase

102. Pre-construction phase measures are implemented during detailed design.

(1) Siting and Land Acquisition

103. The subproject is located at the planned construction land of Xi’an High-tech Zone, therefore, it will not result in any involuntary land acquisition, resettlement or physical displacement. There will be no loss of personal property, structures, crops, trees or other assets. There are also no potential adverse impacts on disadvantaged or vulnerable groups, including the poor, women and children, and Indigenous Peoples.

(2) Mitigation measures and monitoring during detailed design

(i) Detailed Design. Environmental mitigation and pollution control measures indicated in this IEE, the EMP and the domestic EIA registration form will be incorporated into the detailed design.

(ii) Organization. A subproject PMO will be established by PIE with sufficient staff responsible for environmental and social issues and an external Loan Implementation Environmental Consultant (LIEC) will be hired by the PMO if needed. 43

(iii) Training. Before construction, the LIEC will implement institutional strengthening and training programs. The training will focus on ADB requirements and domestic environmental, health and safety laws, regulations and policies, environmental management plan, environmental monitoring, and natural cultural resources and the implementation of GRM. The training targets are PIE, PMO and contractors.

(iv) Bidding documents and contracts. Environmental mitigation measures indicated in this EIA, the EMP and the domestic EIA registration form will be included in contracts for civil works and equipment installations. All contractors will be required to strictly comply with the EMP.

(v) Environmental monitoring. According to relevant requirements of PRC and ADB, the environmental monitoring plan shall be formulated. The main monitoring targets of this subproject are noise and dust during construction phase and noise during operation phase.

(3) Grievance Redress Mechanism

104. In accordance with the GRM presented in Chapter VIII of the IEE, a staff member from PIE will be assigned to be overall responsible for the GRM. GRM training will be provided for PMO, IA and PIE, and GRM access points. GRM access point phone numbers, fax numbers, addresses and emails will be disclosed to the public at the construction site.

(4) Training and Capacity Building

105. A training plan is developed focusing on the implementation of relevant environmental, health and safety laws, regulations and policies, EMP, environmental monitoring, natural cultural resources and GRM will be delivered by the LIEC. The training targets are subproject PMO, PIE, and contractors.

(5) Permitting

106. All necessary permits have been obtained from relevant authorities.

B. Anticipated Environmental Impacts and Mitigation Measures during Construction Phase

107. Potential impacts during the construction phase could include air pollution, noise, water pollution, solid waste, and community and workers health and safety. Potential air quality impacts could occur due to fugitive dust generated at construction sites from stockpiles of uncovered earth materials, and vehicles hauling materials. The use of powered mechanical equipment during construction activities will generate noise. Construction activities will generate wastewater and construction workers will generate domestic wastewater. Stockpiles of construction waste is expected to have impact on the surrounding environment. Construction activities will produce construction waste and domestic waste. Workers will face occupational health and safety issues working on construction sites. Identified impacts can be readily addressed through the application of good construction practices.

1. Impacts on Flora and Fauna

108. Typical construction impacts on flora and fauna include removal of vegetation and disruption of the ecosystem during construction. If present, rare or endangered flora or fauna may

44 also be impacted. However, the construction sites are located in urban environments with little or no vegetation cover other than recently established grasses and shrubs. It is therefore unlikely that there will be direct impacts on natural lands or ecological values from site developments.

109. Based on site visits, there is no known rare or endangered flora or fauna, parks, nature reserves or areas with special ecological significance which will be impacted by the subproject. Impacts on flora or fauna are thus expected to be minimal and short-term. Nonetheless, to address potential impacts, the following mitigation measures will be implemented.

(i) Site vegetation plans will be developed at subproject sites using appropriate local native species. (ii) Any existing greening areas impacted by the subproject will be restored post- construction using appropriate native species. (iii) During construction, construction working areas will be demarcated to prevent encroachment and damage to adjacent areas.

2. Erosion and Spoil

110. Construction activities such as land leveling, excavation and filling activities may lead to surface erosion. The most vulnerable soil erosion areas in the construction site include excavation sites, leveling sites, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. Soil erosion can also be more serious on slopes or near water bodies, though based on site visits all construction sites are generally flat and there are no rivers, streams, ditches or lakes that are likely to be affected. Soil erosion can also occur after the completion of construction if site restoration is inadequate. Finally, construction activities may generate surplus spoil. Details of spoils generated from the subproject are given in Table V-1.

Table V-1: Magnitude of Earthworks for the Subproject Unit: 10,000 m3

Earth excavation Earth backfill Spoil Spoil Disposal Spoil Spoil 38 29 9 Xi’an Urban Area Landfill Site

111. These impacts can be mitigated through typical good construction practice as set out in EHS Guidelines on Construction and Decommissioning (C&D), erosion controls and site maintenance:

(i) At construction site, the potential for storm water runoff will be assessed and appropriate storm water drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention and settling ponds to control topsoil runoff. (ii) Land excavation and filling will be balanced so as minimize the requirement for fill material transportation. (iii) During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. (iv) Temporary spoil storage sites will be identified, designed, and operated to minimize impacts. Spoil sites will be restored at the conclusion of storage activities. 45

(v) Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to Xi’an Urban Area Landfill Site for disposal. (vi) Spoil and aggregate piles will be covered with landscape material and/or regularly watered. (vii) Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal. (viii) Construction and material handling activities will be limited or halted during periods of rains and high winds. (ix) Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. (x) Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass.

3. Wastewater

112. Inappropriate disposal of domestic wastewater (from construction workers) or construction wastewater (from oil-containing wastewater from machinery repairs) may cause soil or groundwater contamination.

113. Construction wastewater will be produced from the maintenance and cleaning of mechanical equipment and vehicles, and lost water and soil during the construction period which is discharged as pollutants. It is unlikely that runoff from site will reach distant water bodies, however, to guard against runoff and infiltration impacting the immediately surrounding areas, the contractors shall ensure that runoff from site will not reach distant water bodies.

114. Inappropriate disposal of construction wastewater (from construction site runoff, drainage of drilling, washing construction equipment and vehicles, pouring and curing concrete, and oil- containing wastewater from machinery repairs) could potentially pollute nearby water bodies and clog local drains. Workers will generate but limited amount of domestic wastewater.

115. To prevent pollution of water resources, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D, will be implemented:

(i) Worker camp will be installed with sufficient toilets which will be provided for the workers and domestic wastewater will be treated in septic tank and discharged to the municipal sewerage system on a regular basis. Once the construction starts, if it is found that toilets are not enough or there are female workers, more toilets will be provided. (ii) Construction wastewater will be directed to temporary detention and settling ponds, and then treated water will be partly recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer system and the waste residue in the tank is cleared and transported to designated certificated and engineered landfills by the local sanitation department personnel. If needed, polyacrylamide flocculent will be used to facilitate particle settling. All discharged construction wastewater will to be treated to meet the appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be treated in the municipal WWTP.

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(iii) All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. (iv) Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. (v) Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. (vi) All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation. (vii) Storage facilities for fuels, oil, and other hazardous materials are within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits. (viii) The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

4. Air Pollution

(i) Analysis of the impact of fugitive dust generated by vehicle transportation

116. The fugitive dust transported by the vehicle accounts for about 30% of the total fugitive dust generated. In the complete dryness condition, fugitive dust quantity is calculated according to the following empirical formula:

Q=0.123ͧV/5ͨ(W/6.8)0.85(P/0.5)0.75

In the formula: Q--the fugitive dust of the car, kg/km·per car; V--car speed, km/h; W--car weight, t; P--the amount of dust on the road surface, kg/m2.

117. Table V-2 shows the amount of fugitive dust generated by a truck with a capacity of 5 tons passing a road of 500m at different road cleaning levels and at different driving speeds.

Table V-2: Vehicle Fugitive Dust Units at Different Speeds under Road Cleaning Conditions (Unit: kg/car·km) 0.1 0.2 0.3 0.4 0.5 1.0 Speed ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ ˄kg/m2˅ 5(km/h) 0.0283 0.0476 0.0646 0.0801 0.0947 0.1593

10(km/h) 0.0566 0.0953 0.1291 0.1602 0.1894 0.3186

15(km/h) 0.0850 0.1429 0.1937 0.2403 0.2841 0.4778

20(km/h) 0.1133 0.1905 0.2583 0.3204 0.3788 0.6371 Source: ADB TA consultants 47

118. The results show that in the same road cleaning levels, the faster the speed is, the more fugitive dust is generated; and at the same speed, the worse the road cleaning level is, the more fugitive dust is generated.

119. If the road is sprayed with water regularly, the dust will be reduced. If the water is sprayed 4~5 times every day, the fugitive dust can be reduced by about 70%. Table V-3 shows the test results of water spraying at the construction site. It presents that 4~5 times of water spray at the construction sites every day can effectively control the construction fugitive dust, and impacts range of the TSP will be less than 50m and the TSP concentration can meet the hourly average concentration limit in Table 1 of the Fugitive Dust Emission Limit of Construction Site (DB61/1078- 2017), no more than 0.7mg/m3. Therefore, limit of vehicle speed, maintenance of road and proper water spray are effective means to reduce vehicle fugitive dust.

Table V-3: Test Results of Watering for Fugitive Dust Suppression at Construction Site Distance (m) 5 20 50 100 TSP hourly average No water spray 10.14 2.89 1.15 0.86 concentration ˄mg/m3˅ Water spray 2.01 1.40 0.67 0.60 Source: ADB TA consultants

(ii) Impact of construction dust from outdoor stockpiles and uncovered construction sites

120. The fugitive dust caused by wind in the outdoor stockpiles and uncovered construction sites accounts for about 70% of the total dust generated. Due to the construction needs, some building materials need to be stacked outdoor. Some construction sites need to be excavated and stacked manually, where dust is generated in the case of dry climate and windy conditions.

121. The spreading and diffusion of dust particles in the air are related to meteorological conditions such as wind speed, and the sedimentation velocity of the dust particles. Taking sand and dust as an example, the sedimentation velocity increases rapidly with the increasement of particle size. When the particle size is 250μm, the sedimentation velocity is 1.005 m/s. Therefore, when the particle size is larger than 250μm, the main impact range of the dust is within the close range of the fugitive dust generation point in downwind direction and the impacts are mainly from the micro and small particles.

122. The construction fugitive dust size varies greatly based on the construction season, the amount of earthwork and the construction management particles and the impact range can reach 150~300m. Through the analogy investigation and analysis, under the general meteorological conditions, when the average wind speed is 2.5m/s, the construction fugitive dust can result in:

i. The TSP concentration in the construction site is 1.5~2.3 times of the reference point in the upwind direction; ii. The TSP concentration at the point which is 150 m way from the construction site in the downwind direction is 0.49 mg/m3 equivalent to 1.6 times of the limit; iii. Fence can reduce construction fugitive dust pollution. When the wind speed is 2.5 m/s, the impact range can be reduced by about 40%.

123. Construction activities may destroy the soil surface, expose the land and loosened the soil and provide good conditions for fugitive dust generation. The subproject area belongs to a

48 temperate continental monsoon climate with less rainfall and more dryness and wind in spring and winter seasons. Some study pointed that fugitive dust caused by windy weather leads to high concentration of TSP in the atmospheric environment, among which construction sites contribute most. Therefore, fugitive dust pollution is one of the main environmental problems during the construction phase.

(iii) Mitigation Measures for Ambient Air Quality Impact

124. The subproject is located in the urban area. In order to reduce the impacts of construction fugitive dust during construction, the contractors should strictly follow the Fugitive Dust Emission Limit of Construction Site Boundary (DB61/1078 -2017), Work Plan for the Blue Sky Defense War of Shaanxi Province in 2019, and other relevant provisions such as the Regulations on the Prevention and Control of Air Pollution in Shaanxi Province. The main prevention measures for construction fugitive dust are as follows:

(i) Water will be sprayed on active construction sites including where fugitive dust is being generated on a daily basis, and more frequently during windy days. (ii) Transport vehicles will be limited to low speeds at the construction sites. (iii) Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. (iv) Construction site roads will be well maintained and watered and swept on an as- needed basis. Construction site road entry points will be equipped with truck drive through wash ponds. (v) Transport routes and delivery schedules will be planned to avoid densely populated and sensitive areas, and high traffic times. (vi) Store petroleum or other harmful materials in appropriate places and cover to minimize fugitive dust and emission. (vii) Provide regular maintenance to vehicles in order to limit gaseous emissions (to be done off-site). (viii) Temporary fencing will be erected around dusty activities. (ix) Construction spoil, aggregate other construction materials will be temporary stored using containers, but they may still have the potential to generate dust. Thus, containers will be covered and/or watered if necessary. Powdered materials such as cement and lime will be stored in sealed bags or containers. (x) Muddy or dusty materials on public roads outside the exits of works areas will be cleaned immediately. (xi) On-site asphalting and concrete batching are prohibited. (xii) Fence will be installed at site boundaries and dust monitoring will be implemented at sensitive receptors to ensure compliance. (xiii) Disturbed site will be revegetated as soon as possible after the completion of works.

5. Noise

125. According to the nature of the subproject, the noise sources of the construction activities at the construction sites are shown in Table V-4. 49

Table V-4: Noise Sources of Construction Machinery Measuring point No. Name of Device A sound level (dB(A)) distance (m) 1 Drill pile machine 109 2 Concrete pump 85 3 Concrete vibrating machine 84 4 Tire hydraulic excavator 84 5 Grader 90 D=5 6 bulldozer 86 7 Vibratory roller 86 8 Double wheel double vibrating roller 87 9 Three-wheel roller 81 10 Tire roller 76 Source: ADB TA consultants

126. According to the data in Table V-3, the noise from the drilling machine is the highest among the construction machinery, up to 109dB(A) at 5m from the sound source, and the remaining sound level of most construction machinery is between 76~90dB(A).

127. According to the noise attenuation formula of point source, the noise sound level at the different distances from the point noise source r is: r Lp r =Lp r0 -20lg r0 In the formula: Lp r -- the sound pressure level of the noise source at the predicted point, dB(A);

Lp r0 -- Sound pressure level at the point of reference location , dB(A);

0 -- the distance from the reference position to the center rof the sound source, m; r0 r-- the distance from the center of the sound source to the predicted point, m.

128. According to the formula, the impact ranges of the equivalent sound levels of the construction machinery is shown in Table V-5.

Table V-5: Equivalent Sound Level of Construction Machinery’s Noise Impact Range LAeq: dB(A) Standard distance Standard distance Name of Predicted point distance (plant boundary) (sensitive point) No. equipmen Daytime Nighttime Daytime Nighttime t 5 10 20 40 80 160 320 640 2506 (70) (55) (60) (50) Drill pile 1 109 103 97 91 85 79 73 67 55 446 2506 1409 4456 machine Concrete 2 85 79 73 67 61 55 / / / 28 158 89 281 pump Concrete 3 Vibrating 84 78 72 66 60 54 / / / 25 142 79 251 machine

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Tire type 4 hydraulic 84 78 72 66 50 54 / / / 25 142 79 251 excavator 5 Grader 90 84 78 72 66 60 54 / / 50 283 158 500 6 bulldozer 86 80 74 68 62 56 50 / / 32 177 100 315 Vibratory 7 86 80 74 68 62 56 50 / / 32 177 100 315 roller Double wheel 8 double 87 81 75 69 63 57 51 / / 35 199 112 354 vibration roller Three- 9 wheel 81 75 69 63 57 51 / / / 18 100 56 177 roller 10 Tire roller 76 70 64 58 52 / / / / 10 56 32 100 Source: ADB TA consultants

129. According to the predicted results in Table V-5, the noise at the point 446m away from the drill pile machine can meet the daytime limits in Environmental Noise Emission Standards at Construction Site Boundary (GB12523-2011) and noise at the point 2,506 m away can meet the nighttime noise limit. The noise at the point 56m away from vibrator, noise at the point 56m away from the vibrator in the daytime can meet the daytime limit and noise at the point 317m away can meet the nighttime noise limit. During earthwork construction phase, the noise at the point 50m away can meet the daytime limit and the noise at the point 283m away can meet the nighttime limit.

130. To ensure construction activities meet PRC noise standards and to protect workers and adjacent residents, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) Construction activities will be planned in consultation with local authorities and communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in the least disturbance. (ii) Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of such night time activities in advance. (iii) When undertaking construction planning, simultaneous high-noise activities will be avoided, and high noise activities will be scheduled during the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from operating at the same location. (iv) Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise. 51

(v) Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines. (vi) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (vii) Vehicles transporting construction materials or waste will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (viii) Special attention will be paid to protect sensitive sites near the component site. High noise construction activities will be positioned as far away from sensitive sites as possible. (ix) Drilling site will be enclosed by fence to reduce noise, if necessary.

6. Solid Waste

131. Solid waste generated in the construction phase will include construction and domestic waste. Construction wastes include various waste packaging materials and waste generated during equipment installation and cleaning. An estimated of 0.5 kg/day per worker of domestic waste will be generated from construction workers. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

132. The following solid waste management measure and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) Wastes will be reused or recycled to the extent possible. (ii) Littering by workers will be prohibited. (iii) Excavated soil will be backfilled onsite to the extent possible. Excess spoil that cannot be used on-site will be transported to Xi’an Urban Area Landfill Site for disposal. (iv) Domestic waste containers will be used for domestic waste collection at work sites. Domestic waste will be collected on a regular basis by the local sanitation department and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. (v) Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. (vi) There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. (vii) Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil, waste from drilling and contaminated soils that remain on the site after construction.

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7. Hazardous and Polluting Materials

133. Inappropriate transportation, storage, use and spills of petroleum products and hazardous materials such as oily waste can cause soil, surface and groundwater contamination. To prevent this, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) A hazardous material handling and disposal protocol that includes spill emergency response will be prepared and implemented by contractors. (ii) Storage facilities for fuels, if applicable will be within secured areas on impermeable surfaces provided with dikes with a 110% volume, and at least 300 m from drainage structures and important water bodies. A standalone site within the storage facility will be designated for hazardous wastes. (iii) Signs will be placed at hazardous materials storage sites to provide information on type and name of chemicals and hazardous materials. (iv) Suppliers hazardous materials must hold proper licenses and follow all relevant protocols and PRC regulations and requirements. (v) A licensed company will be hired to collect, transport, and dispose of hazardous materials in accordance with relevant PRC regulations and requirements. 8. Impacts on Community Health and Safety

134. Construction activities have the potential to cause community disturbance such as traffic congestion or delays, and public safety risks from heavy vehicles and machinery traffic and risk to kids trying to get onto construction site. Mitigations and construction good practice as set out in EHS Guidelines on C&D and EHS general guidelines will be implemented to address traffic and other community disturbance issues. (i) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (ii) Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals.

(iii) Signs will be placed at construction sites in clear view of the public, warning people of potential dangers. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate.

9. Workers Occupational Health and Safety

135. Construction may cause physical hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, such as toxic fumes and vapors, and others.

136. Contractors will implement adequate precautions to protect the health and safety of their workers: 53

(i) Each contractor will undertake H&S risk assessment of construction works and implement relevant construction phase EHS plan in line with construction good practice as set out in EHS Guidelines on C&D and Occupational H&S guidelines. (ii) Identify and minimize the causes of potential hazards to workers. Implement appropriate safety measures. (iii) Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and storage, handling and disposal of hazardous waste. Induction will be conducted before construction and no worker is allowed on site without induction. (iv) Ensure that all equipment is maintained in a safe operating condition. (v) Provide appropriate PPE to workers. (vi) Implement COVID-19 prevention measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID-19. (vii) Provide procedures for limiting exposure to high noise or heat working environments in compliance with PRC occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and World Bank EHS Guidelines. (viii) Ensure regular safety meetings with staff.

10. Physical Culture Resources

137. Based on site visits, there are no known cultural heritage or archaeological sites at or near the component sites. However, construction activities have the potential to disturb as yet unknown underground cultural relics. To address this issue, a construction phase chance find procedure will be established and activated if any chance finds of PCRs are encountered:

(i) construction activities will be immediately suspended if any PCRs are encountered; (ii) destroying, damaging, defacing, or concealing PCRs will be strictly prohibited in accordance with PRC regulations; (iii) local Cultural Heritage Bureau will be promptly informed and consulted; and (iv) construction activities will resume only after thorough investigation and with the permission of the local Cultural Heritage Bureau.

138. In case of any PCR is found, ADB SPS 2009 requirements as well as PRC laws and regulations will be followed.

C. Anticipated Environmental Impacts and Mitigation Measures during Operation Phase

139. The air pollution sources during the operation phase mainly are mainly from automobile exhaust and cooking fume.

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1. Air Pollution

(1) Emission of Vehicle Exhaust

(i) Analysis of impacts on the surrounding area

140. According to the traffic impact report, the daily peak traffic flow of the subproject is shown in Table V-6. The pollution emission factors of various types of vehicles are shown in Table V-7.

Table V-6：Predicted Number of Vehicles of Two Types per Peak Hour in 2025 (vehicles / h) Item Vehicle Truck Weidou Road component 88 127 Chang’an Industrial Park component 77 61 Source: ADB TA consultants

Table V-7: Pollutant Emission Factors of Various Types of Vehicles (vehicles / h) Pollutant emissions (g / km) Type of vehicle NOx PM2.5 National Phase IV Mini and small petrol car Emission Standard for 0.032 0.003 Motor Vehicle Pollutants National Phase IV Heavy diesel truck Emission Standard for 5.554 0.138 Motor Vehicle Pollutants Source: ADB TA consultants

141. According to the survey, as the average mileage of trucks around the park is about 5 km, the estimated daily traffic volume of trucks is calculated based on heavy-duty diesel. The average mileage of cars is about 10km. The estimated NOx and PM2.5 emissions of motor vehicles of each component are shown in Tables V-8 and V-9.

Table V-8: Estimated Pollutant Emissions (t/a)

Item Type of Motor vehicle NOx PM2.5 Car 0.034 0.003 Weidou Road component Truck 6.635 0.151 Subtotal 6.669 0.154 Chang’an Industrial Park Car 0.030 0.003 component Truck 3.187 0.072 Subtotal 3.217 0.075 Total 9.886 0.229 Source: ADB TA consultants

142. According to the calculation, the emissions of NOx and PM2.5 of the subproject estimated to be 9.886 t/a and 0.229 t/a. Emission from vehicle exhaust from the subproject will have an adverse impact on its surrounding environment.

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(ii) CO2 emission of the subproject

143. CO2 emission of the subproject is calculated based on the fuel consumption and CO2 emission factors of various fuels. The CO2 emission factors of various fuels is presented in Table V-9.

Table V-9: CO2 emission factors of various fuels (kg/TJ)

Type of fuels Pollutant emission factors

Gasoline 69,300

Diesel 73,000 Source: IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories

144. The fuel consumption of different vehicles is presented in Table V-10.

Table V-10: Fuel consumption of different vehicles

Type of vehicles Fuel consumption per 100 km

Small vehicles 9.69

Truck 32.34 Source: ADB TA consultants

145. The CO2 emission of the subproject is presented in Table V-11.

Table V-11: Estimated CO2 Emissions (t/a)

Item Type of Motor vehicle CO2 PM2.5

Car 0.034 221.429 Weidou Road component Truck 6.635 1,300.676

Subtotal 6.669 1,522.104

Car 0.030 193.750 Chang’an Industrial Park component Truck 3.187 624.734

Subtotal 3.217 818.484

Total 9.886 2,340.589

(iii) No-Project alternative analysis

146. According to the survey, if the subproject is not implemented, average driving distance for the transportation vehicles to transport goods to various scattered points in Xi’an is 30 km and the average driving distance of employees' cars is about 5 km.

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Table V-12: Pollutant Emissions (t/a) Type Emissions without this of Emissions of this subproject Emissions reduction subproject Moto Item r NO PM PM PM vehic Fuel CO2 Fuel NOx CO2 Fuel NOx CO2 le x 2.5 2.5 2.5 - - - Vehi 74.18 0.0 0.0 221.4 37.09 0.01 0.0 110.71 - Weidou 37.09 0.01 0.0 cle 7 34 03 29 3 7 02 4 110.71 Road 3 7 02 4 compo Truc 411.5 6.6 0.1 1300. 2469. 39.8 0.9 7804.0 2057. 33.1 0.7 nent 6503. k 39 35 51 676 237 13 05 55 697 77 54 379

485.7 6.6 0.1 1522. 2506. 39.8 0.9 7914.7 2020. 33.1 0.7 Subtotal 6392. 26 69 54 104 330 30 07 69 604 61 53 665 - - - - Chang’ Vehi 64.91 0.0 0.0 193.7 32.45 0.01 0.0 an 96.875 32.45 0.01 0.0 96.87 cle 3 30 03 50 7 5 01 Industri 7 5 01 5 al Park Truc 197.6 3.1 0.0 624.7 1186. 19.1 0.4 3748.4 988.3 15.9 0.3 compo 3123. k 69 87 72 34 011 23 35 04 43 36 62 nent 670 262.5 3.2 0.0 818.4 1218. 19.1 0.4 3845.2 955.8 15.9 0.3 Subtotal 3026. 82 17 75 84 468 38 36 79 86 21 61 795

748.3 9.8 0.2 2340. 3724. 58.9 1.3 11760. 2976. 49.0 1.1 Total 9419. 08 86 29 589 798 67 43 049 490 81 14 460 57

147. Based on Table V-12, that the subproject will reduce the fuel computation by 2976.490 t/a, and emissions of NOx, PM2.5 and CO2 by 49.081 t/a, 1.114 t/a and 9,419.460 t/a, respectively. Therefore, the subproject will reduce the air pollutants emission and improve local air quality.

(2) Emissions from non-road mobile sources

148. The non-road mobile source of this subproject is mainly the exhaust from diesel engine forklifts. in the subproject will have 100 forklifts with net engine power no less than 75kW and no more than 130 kW. The pollutants from the forklifts is from Phase IV mission limit in accordance with Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non-road Mobile Machinery (GB 20891-2014).

Table V-13: Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non-road Mobile Machinery (excerpts) NOx PM Phase Rated net power (Pmax) (kW) (g/kWh) (g/kWh) Pmax>560 3.5 0.10

130≤Pmax≤560 2.0 0.025

75≤Pmax≤130 3.3 0.025 IV 56≤Pmax≤75 3.3 0.025

37≤Pmax≤56 - 0.025 Pmax<37 - 0.60 Source: ADB TA consultants

149. Based on Table V-13, the exhaust pollutant emission limit NOx is 3.3g/kWh, and the PM is 0.025 g/kWh.

150. The daily working hours of the forklifts of this subproject is 8h, the pollutants emission from forklifts are shown in Table V-14.

Table V-14: Emissions of Pollutants from Non-road Mobile Sources Number of forklifts Item Working hours (h) NOxͧt/aͨ PMͧt/aͨ (sets) Weidou Road component 50 8 0.482 0.004 Industrial Park Chang’an 50 8 0.482 0.004 component Source: ADB TA consultants

151. According to calculation, the NOx and PM emissions from the subproject's non-road mobile sources are 0.964 t/a and 0.008 t/a.

(3) Vehicle Exhaust from Underground Parking Lot

152. There are 1,726 parking spaces of the subproject. The ground parking spaces are scattered and is mostly used for temporary parking with short duration time. Therefore, the vehicle exhaust from the ground parking is small, and is easy to disperse outdoor. The IEE focuses on the exhaust emissions from the underground parking lot.

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153. The main pollutants of automobile exhaust are CO, HC and NOx. The emission factors of pollutants vary based on the type of vehicle and vehicle driving condition. In different vehicle driving conditions, the main pollutant concentrations in automobile exhaust are presented in Table V-15.

Table V-15 Pollutants concentration in the vehicle exhaust Pollutant Unit Idle speed Normal driving CO % 4.07 2 HC ppm 1200 400 NOx ppm 600 1000

154. Based on Table V-14, under the idling condition, the concentration of CO and HC in the vehicle exhaust is relatively high; under normal driving conditions, the concentration of CO and HC in the vehicle exhaust gas decreases, while the concentration of NOx concentration increases. Concentrations of CO, HC and NOx pollutants under idle speed is utilized in this IEE: CO: 4.07%, HC: 1200 ppm (0.12%), NOx: 600 ppm (0.06%).

(i) Pollutant emission intensity

155. The impact of car exhaust in the underground garage to the surrounding environment is directly related to its operating conditions and generally divided into three types. The first type is the full load condition with relatively big numbers of cars entering and exiting the garage. The second type is peak hour condition. The third type is the daily average car flow condition. This IEE will focus on the most unfavorable situation of the subproject, therefore impacts under full load condition is calculated in the IEE.

(ii) Calculation of pollutant emission intensity

156. The exhaust emissions are calculated as follows:

D=QT˄k+1˅A/1.29

In the formula:

D——exhaust gas emission, m3/h. Q——car flow, v/h. The traffic flow under full load conditions, the number of vehicles in the underground garage reaching the total numbers of parking spaces, and the one-hour car flow at the entrance and exit is calculated as one tenth of the parking spaces. T——the running time of the vehicle in the garage under idle speed, min. The running condition is under idle speed, and the running speed is determined as 5 km/h. Considering the basic conditions of the garage, car backing, parking, starting and other factors, the average running time of the vehicle in the underground garage is 1.5 min. k——the air-fuel ratio. When the vehicle is under idle condition, the air-fuel ratio is 12:1. A——fuel consumption, kg/min. The average fuel consumption of vehicles entering and exiting the garage (idle speed <5km/h) is 0.2L/min (the density of unleaded No. 92 gasoline is 0.713kg/L)

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157. The pollutants emission is calculated as follows:

G=DCF

In the formula:

G——the pollutant emission, kg / h. C——emission concentration of pollutants, volume ratio, ppm. CO is 4.07%, HC is 1200ppm (0.12%), NOx is 600ppm (0.06%) f——volume and mass conversion factor. CO is 1.25, HC is 3.21 and NO is 2.05

(iii) Calculation results of pollutant source intensity of car exhaust

158. According to the above parameters and formulas, pollutant source intensity of car exhaust in the underground garages is presented in Table V-16.

Table V-16: Pollutant source intensity of car exhaust in the underground garages One-way Pollutant Parking Location traffic space CO HC NOx (vehicle / h) Maximum West plot of Weidou Road 548 54.8 emission rate 6.01 0.46 0.15 Component (kg/h) Maximum East plot of Weidou Road 878 87.8 emission rate 9.63 0.73 0.23 Component (kg/h) Maximum Industrial Park Chang’an 484 48.4 emission rate 5.31 0.40 0.13 component (kg/h)

(iv) Pollutant emission concentration in the underground garage

159. Emission volume of the pollutants per unit time is calculated based on the ventilation time, and the pollutants emission concentrations is calculated based on the pollutants emission rate. The formula is presented below:

C=G/Q×106 Q=NV Among them: C——concentration of pollutants, mg / m 3. G——pollutant emission rate, kg / h. Q——Exhaust velocity of the fan, m3/h. V——garage volume, m3. (Garage area in the West plot of Weidou Road Component is 14,500 m2, the east plot of Weidou Road Component is 31,376 m2 and Chang’an Industrial Park component is15,400 m 2. The height is 3.3 m. N——Ventilation times, times / hour. (6 times per hour).

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160. The concentration of pollutants emitted from the underground garage is shown in the Table V-17.

Table V-17: Pollutant Emission Concentration in Underground Garage (Units: mg/m3)

Project CO HC NOx West plot of Weidou Road 20.93 1.58 0.51 Component East plot of Weidou Road Component 15.50 1.17 0.37

Chang’an Industrial Park component 17.41 1.32 0.42

Note: The underground garage adopts forced ventilation, and the mechanical exhaust volume is calculated according to the ventilation time of 6 times/hour. Landscape plants will be planted around the underground garage exhaust outlet to improve the ambient air quality.

(4) Cooking fume

161. The subproject will have about 180 staff during operation. The average consumption of edible oil is calculated at 0.02kg/ p·d, and the oil consumption of the subproject is 3.6 kg/d. The average volatile oil is 2% of the total oil consumption. The subproject will utilize oil fume purifier with an exhaust air volume of 2,000 m3/h and a removal efficiency at 75%. Daily average working time under full capacity is 3 hours.

162. The subproject consists of about 30 staff members. If the average consumption of edible oil is calculated at 0.02kg/ p·d, the oil consumption is 0.6kg/d. According to the analogy project survey, the average volatile oil content is 2% of the total oil consumption. The subproject will use purifiers for airborne grease and fume with an exhaust air volume of 2000 m3/h, which reaches the removal efficiency at 75% if it works at full capacity for 3 hours every day.

Table V-18: Emission of cooking fume Cooking fume No. of Concentration Removal Emission Item production person (mg/m3) efficiency (%) concentration (kg/d) Weidou Road 80 1.6 5.33 75 1.33 Component Industrial Chang’an 100 2.0 6.67 75 1.67 Park component Source: ADB TA consultants

163. The mitigation measures for air pollution are presented below.

(i) Keep good maintenance of vehicles and road. (ii) Landscape plants will be planted at the subproject site to improve the ambient air quality. (iii) Cooking fume will be treated by oil fume purifier with an exhaust air volume of 2,000 m3/h and a removal efficiency at 75%, then discharged by flue pipe.

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2. Waste water

(1) Domestic waste water

164. Domestic wastewater during the operation phase is from the staff. With the number of about 180 people, the daily water consumption of the subproject is 21.60 m3 if daily water consumption is calculated at 120L/person. If the coefficient for water intaking and discharge is calculated at 0.8, the subproject daily sewage production is 17.28 m3. The sewage water quality indicators and pollutant discharges are shown in the Table V-19.

Table V-19: Sewage Quality Indicators and Pollutant Discharge Item Annual emissions (m3) Pollutant Concentration (mg/L) Emission (t) COD 300 0.69 Weidou Road Component Ammonia 25 0.06 2,310 nitrogen Animal and 20 0.05 vegetable oil COD 300 0.86 Industrial Park Ammonia Chang’an 25 0.07 component 2,880 nitrogen Animal and 20 0.06 vegetable oil

165. Domestic wastewater generated by the subproject is pretreated by the septic tank and finally discharged into the wastewater treatment plant (WWTP) for treatment. The domestic wastewater discharges by the subproject will be required to meet Class III maximum acceptable concentrations (MACs) in Integrated Standards for Wastewater Discharge (GB8987-1996), and the WWTP discharges are required to meet Class 1A of Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants (GB 18918-2002).

166. The subproject will generate production wastewater during operation from vehicle washing. The wastewater will be treated by oil-water separator and recycled.

3. Solid Waste

167. The solid waste generated during operation is mainly domestic waste and waste packaging materials.

(1) Domestic waste

168. During operation, the subproject will have about 180 staff and the daily domestic waste production is 180 kg. The domestic waste generated is required to be classified, then collected, transferred and disposed by local sanitation department. The domestic waste shall be collected on a daily basis to prevent secondary pollution.

(2) Waste packaging materials

169. Annual waste packaging materials generated by this subproject is about 1.0t and will be sold to manufactures for recycling.

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(3) Kitchen waste

170. Kitchen waste will be collected, transferred and disposed by a certificated third-party company.

(4) Hazardous waste

171. Oily waste is classified as hazardous waste and will be collected, transported and treated by a certified 3rd party hazardous waste treatment company. Besides, a temporary hazardous waste storage will be built.

4. Noise

172. Noise of this subproject during operation mainly comes from equipment such as forklifts, trucks, and clamp machine. Following measures will be taken to mitigate noise impacts.

(i) Low-noise equipment will be used as far as possible, and noise reduction measures such as noise elimination, shock absorption, insulated enclosures and sound dampening materials on exterior walls will be implemented. (ii) All equipment will be properly maintained in order to minimize noise. (iii) Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S. (iv) Layout of subproject sites will be reasonable planned to reduce noise. (v) Noise monitoring will be conducted at the site boundaries for compliance.

5. Community and Occupational Health and Safety

173. The subproject operation poses potential risks to workers and community. To mitigate potential health and safety risks to workers, the following measures and good practice measures per the EHS Guidelines on occupational H&S will be taken.

(i) Operation phase EHS plan and traffic management plan will be developed and implemented and workers will be trained regularly on their implementation. (ii) Nearby communities will be informed of the potential risks and the emergency response plan. (iii) PPE including goggles, gloves, safety shoes will be provided to workers. Noise protection equipment will be provided to workers in high-noise area. (iv) Implement COVID-19 prevention measures, including disinfection/cleaning of offices, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff is infected with COVID-19 (v) Provide training to workers on occupational health and safety, and emergency response such as fire. 63

(vi) Transporting vehicles will slow down to 30 km/h and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (vii) Regular maintenance of vehicles to minimize potential accidents caused by equipment malfunction. Subproject sites will be fence with restricted public access.

6. Emergency Response Plan

174. An emergency risk and response plan will be established in accordance with the “National Environmental Emergency Plan” (24 January 2006) and other relevant PRC laws, regulations and standards and will include measures in the World Bank EHS guidelines with respect to occupational and community health and safety. Nearby communities will be informed of the potential risks and the emergency response plan. Major elements of the emergency response plan are presented in Table 2 of Appendix I.

D. Positive Impacts during the Operation Phase

175. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; and (iii) significantly reduce fossil fuel consumption by 2,976.490 tons and emissions of NOx, PM and CO2 by 49.081 tons, 1.114 tons and 9419.460 tons, respectively per year and improve local air quality.

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VI. ANALYSIS OF ALTERNATIVES

176. An analysis of alternatives was undertaken during the feasibility stage to determine the most financially and technically feasible way of achieving the subproject objectives while minimizing environmental and social impacts.

A. Subproject Rational

177. With the promotion of national and regional strategies such as Guanzhong Plain Urban Agglomeration Development Plan and China (Shannxi) Pilot Free Trade Zone, Xi'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region.

178. Xi’an has a well-developed railway, highway and aviation transportation network, and has become an important hub in northwest China. At present, Xi’an has air routes to all provincial cities in China. There are direct flights from Xi'an to many major cities in Asia, including Bangkok, Busan, Fukuoka, Hong Kong, Kuala Lumpur, Manila, Osaka, Sapporo, Singapore Seoul, and Taipei. As a tourist city, Xi'an has built expressways to Lintong, Tongchuan and Baoji, with well-maintained roads to famous scenic spots in suburban counties and to the north slope of the Qinling Mountain. The National Expressway G108, 210, 211 and 312 passes through Xi’an City and of Xi’an City has a good highway transportation condition. Xi’an is classified as International comprehensive transport hub by National Development and Reform Commission in 2018.

179. Although the Xi’an is an important hub in northwest China, there are still some bottlenecks and deficiencies in the development of the Xi'an warehousing and logistics industry. For example, the scale is small and the layout is scattered, especially the traditional manual operations are widely used in existing small and medium-sized logistics parks of Xi'an. In the Xi'an High-tech Zone, there is even a shortcoming of insufficient supply in the logistics park, lack of market visibility and competitiveness.

180. As a developing high-tech Zone, Xi’an High-tech Zone will require more and more modern advanced warehouses and logistics delivery services in the future. The subproject will mainly provide services to the established Zhongjiao Science and Technology Industrial Park and the surrounding areas.

181. Weidou Road component will provide warehouse and logistics services through establishment of smart logistics base. Chang’an Industrial Park component aims to develop a logistics center to support the surrounding enterprises.

182. Implementation of the subproject will : (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; and (iii) significantly reduce fossil fuel consumption by 1,066.91 tons and emissions of NOx, PM and CO2 by 26.956 tons, 0.668 tons and 3,373.91 tons, respectively per year and improve local air quality. For these reasons the “no project” alternative is considered unacceptable.

B. Site location

183. For subproject site selection, the site selection meets the Xi’an Municipal Master Plan and Land Use Plan. There are no environmental sensitive areas near the subproject site. There is no other environmental constraint that might restrict the development of the subproject such as 65 wetlands, historic sites, and access to sewers, critical habits or potential mineral developments.

184. Selecting a site for the subproject is a complicated comprehensive process, which involves national economic policies, local urban master plan, development planning, land use natures, communication and transportation, meteorological conditions, water source, water source protection, geologic conditions, telecommunication, electricity, water supply and drainage, project waste discharge natures, environmental impacts and other economic and technical aspects.

185. According to the urban master plan, regional topographic and geologic data, several candidate sites were selected for this subproject. After field reconnaissance, comparative analysis was conducted regarding topographic, terrain, water source, electricity, meteorological, communication and transportation, land use conditions, plans for neighboring areas, estimated investments for resettlement and population distribution, etc., the current site was selected for the proposed subproject.

C. Overall Alternative Analysis

186. Based on the analysis of alternatives, the subproject has selected the most appropriate location.

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VI. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION

A. PRC and ADB Requirements for Disclosure and Public Consultation

1. PRC requirements

187. Relevant provisions in the PRC Environmental Impact Assessment Law and the Regulations on the Administration of Construction Project Environmental Protection require that an EIA study for a construction project shall solicit opinions from affected residents, as well as other organizations and concerned stakeholders. For a project that prepares a full EIA report is required to submit a public participation statement and make it open to the public, and for a project that prepares only a simplified tabular EIA has no need for public consultation.

188. As this subproject is required to prepare a EIA registration form, it is not required for participation.

2. ADB requirements

189. ADB's SPS 2009 has specific requirements for information disclosure and public participation. In accordance with ADB's public communications policy, ADB is committed to working with borrowers in appropriate locations, appropriate ways and understandable language for the affected people, timely disseminating information (both positive and negative) about social and environmental protection to affected people and other stakeholders (including the public), so that they can provide valuable suggestions for project design and implementation. ADB discloses the following safeguards documents on its official website:

i) For environmental Category A project, a draft full EIA report that shall be disclosed at least 120 days prior to ADB Board consideration;

ii) A draft IEE for environmental category B project;

iii) The final or updated EIA/ IEE; and

iv) Environmental monitoring report submitted by the borrower during project implementation.

190. The SPS 2009 also requires that the borrower carry out meaningful consultation with affected people and other concerned stakeholders, including civil society, and facilitate their informed participation. Consultations should include presentations on environmental impacts, benefits and mitigation measures, the project GRM, and ADB's Accountability Mechanism. For category A projects, two rounds of consultations are required.

191. The subproject is classified as environment Category B, thus, at least one round of consultation is required.

B. Project Information Disclosure

1. Domestic information disclosure

192. According to the Classified Management Directory of Construction Project Environmental Impact Assessment, this subproject belongs to "49, transportation, pipeline transportation and 67 warehousing industry-180 warehousing (excluding oil depots, gas storage, coal storage)" (not included in warehousing and logistics distribution projects of toxic, hazardous and dangerous goods), it is required to register the EIA registration form in the construction project’s environmental impact registration and filing system (http://113.140.66.230:4680/REG/) to complete the registration without administrative approval. At present, the registration of the registration form of this subproject has been completed (registration number: 20206101000600000001), the registration status is shown in Figure II-1.

193. No public feedback was received during public information disclosure.

2. Public participation

194. In November 8, 2019, a public participation meeting was held at the meeting room of Xi’an High-tech Zone Management Committee. A public consultation meeting information notice was posted in the nearby resident’s area for one week prior to the meeting. The notice is presented in Figure VII-1. During the meeting, the PIE introduced relevant information such as the project construction content and construction site, and the EIA institute introduced the potential environmental impacts and mitigation measures to be taken during construction and mitigation. During the meeting, most participants believed that the project construction could improve their quality of life and provide more employment opportunities for nearby residents.

Figure VII-1: Public consultation meeting information notice

195. During the consultation, 23 questionnaires were distributed and 23 completed questionnaires were received. Table VII-1 shows the questionnaire and the public consultation photographs are shown in Figure VII-2.

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196. The overall support for the subproject is very strong. 87.0% of the respondents support construction of the subproject. 86.9.0% of the respondents believe that the subproject will promote local economic development, and 91.3% believe that the subproject will improve the quality of life.

197. 73.9% of the respondents work and 52.2% of the respondents live within 5km of the subproject. 30.4% of the respondents indicated that they have already learned about relevant information of the subproject before the public consultation. 56.5% of the participants were female. The top three environment issues respondents identified in their neighborhoods to be mainly ambient air (69.6%), noise (47.8%) and solid waste (34.8.0%). Dust (65.2%) and noise (39.1%) are identified as the top two issues during the construction phase. Air pollution and noise are identified as the top two issues during the operation phase. However, most participants also indicated that the impacts on the environment can be appropriately mitigated if relevant measures could be taken during the construction and operation phases.

Figure VII-2: Public Consultation Meetings

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Table VII-1: Public Participation Questionnaire Name Sex Age Education Occupation Nationality Contact information

Question Choices Yes Comments Ambient air Noise

1. In your opinion, what are the major Surface water environment pollution issues in your areas? Soil Solid Waste

Other problems < 1km

2. Distance between your working 1-3km place and project site 3 - 5km >5km < 1km

3. The distance between your place 1-3km of residence and the project site 3 - 5km >5km

4. Do you know this project before Yes the public consultation? No Yes 5. Do you understand the environmental impact of the project No before this public consultation? Not clear Clearly understand 6.Are all the potential positive and adverse impacts of the proposed Do not understand project components clear to you? Not clear Noise

Dust 7. Do you understand what are the main impacts in the construction of Solid Waste the proposed project? Other No effect

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Accept 8. If there is no mitigation measure, will you accept the impact of the Do not accept construction phase? Have no idea 9. After understanding the Accept mitigation measures during the construction phase, do you accept Do not accept the expected impact of the construction phase? Have no idea Clearly understand 10. Do you understand the possible adverse effects of the project on the Do not understand environment during the operation? Not clear Clearly understand 11. Do you understand the mitigation measures recommended Do not understand during the operation of the project? Not clear Accept 12. Do you accept the impact of this Do not accept project on ambient air quality? Have no idea Accept 13. Do you accept the impact of this project on the quality of surface Do not accept water? Have no idea Accept 14. Do you accept the impact of this project on the quality of the acoustic Do not accept environment? Have no idea Accept 15. Do you accept the solid waste Do not accept pollution generated by this project? Have no idea Accept 16. Do you accept the impact of this project on the ecological Do not accept environment? Have no idea Ambient air Noise 17. What are the main concerns of Surface water this project? Soil Solid Waste 71

Other problems

18. Do you think that the Yes construction of this project can No promote local economic development? I don’t know Yes 19. Do you think that the construction of this project can No improve your quality of life? I don’t know Support

20. Do you support this project? Barely support Have no idea

21. Recommendations or requirements for project environmental protection.

Table VII -2: Summary Data on Questionnaire Respondents Parameter Indicator No. %

Male 10 43 Sex Female 13 57

Han People 23 100 Nationality Other 0 0

Below 40 2 9

Age 40~50 7 30

60 and above 9 39

Farmer 5 22

Employee 17 74 Occupation Civil servant 1 4

Freelancer 1 4

Elementary school or below 2 9

High school, including Educational level 2 9 technical secondary school

Bachelor degree or above, 2 9 including junior college

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Table VII-3: Detailed information of respondents No. Name Sex Age Nationality Education level Career 1 Liu Meiwa Female 49 Han Middle school Farmer 2 Du Fangxi Female 56 Han Primary school Farmer 3 Li Qiuling Female 47 Han Middle school Farmer 4 Fu Junwa Female 49 Han Middle school Farmer 5 Gou Xiaojuan Female 43 Han Middle school Farmer 6 Cao Yanni Female 41 Han Middle school Farmer 7 Wang Huiling Female 47 Han Middle school Farmer 8 He Yumei Female 44 Han Middle school Freelancer 9 Lei Yanling Female 49 Han Middle school Farmer 10 Li Bin Male 39 Han Bachelor Engineer 11 Liang Ping Female 38 Han Master Accountant 12 Lin Xiaoyan Female 49 Han Middle school Freelancer Zhang 13 Male 54 Han High school Farmer Shenghui 14 Si Xiaowei Male 52 Han Middle school Farmer 15 Xu Tianliang Male 52 Han Middle school Farmer 16 Zheng Zixiao Male 23 Han Bachelor Student Zhao 17 Male 28 Han Junior college Student Wenmchen 18 Mao Xiaoli Female 50 Han Junior college Farmer 19 Yan Ming Male 34 Han High school Farmer 20 Xing Mengfeng Male 37 Han Primary school Farmer 21 Liu Yijin Female 30 Han Middle school Farmer 22 Li Yangguang Male 31 Han High school Farmer 23 Zhou Jinliang Male 31 Han High school Farmer Note: information supplied with the participants consent.

Table VII-4: Statistical Results of Public Opinion Survey Question Choices Number %

Ambient air 11 48

noise 16 70

1. What do you think are the main Surface water 6 26 environmental pollution problems in your area? soil 3 13

Solid Waste 9 39

other problems 0 0

< 1km 3 13

2. The distance between your work 1-3km 9 39 location and the project location 3 - 5km 5 22

>5km 6 26 73

Question Choices Number %

< 1km 1 4

3. The distance between your place of 1-3km 4 17 residence and the project location 3 - 5km 5 22

>5km 11 48

4. Do you know this project before Yes 15 65 public consultation? No 8 35

Yes 7 30 5. Do you understand the environmental impact of the project before conducting No 9 39 public consultation? Not clear 7 30

Clearly understand 5 22 6. Do you understand the possible adverse effects of the proposed project Do not understand 13 57 during the construction process? Not clear 5 22

Noise 6 26

Dust 9 39 7. What are the main impacts in the Solid Waste project construction process? 15 65 Other 1 4

No effect 4 17

Accept 7 30 8. If there is no mitigation measure, will you accept the impact of the Do not accept 9 39 construction phase? Have no idea 7 30

9. After understanding the mitigation Accept 10 43 measures during the construction Do not accept phase, do you accept the expected 2 9 impact of the construction phase? Have no idea 11 48

Clearly understand 8 35 10. Do you understand the possible adverse effects of the project on the Do not understand 8 35 environment during the operation? Not clear 7 30

Clearly understanding 7 30 11. Do you understand the mitigation measures recommended during the Understand 6 26 operation of the project? Don't understand 10 43

accept 10 43 12. Do you accept the impact of this Not accepted project on ambient air quality? 6 26 Does not matter 7 30

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Question Choices Number %

accept 6 26 13. Do you accept the impact of this Not accepted project on the quality of surface water? 4 17 Does not matter 13 57

accept 5 22 14. Do you accept the impact of this project on the quality of the acoustic Not accepted 8 35 environment? Does not matter 10 43

accept 4 17 15. Do you accept the solid waste Not accepted pollution generated by this project? 7 30 Does not matter 12 52

accept 12 52 16. Do you accept the impact of this Not accepted project on the ecological environment? 6 26 Does not matter 5 22

Ambient air 6 26

noise 8 35

17. What are the main concerns of this Surface water 8 35 project? soil 7 30

Solid Waste 6 26

other problems 0 0

can 20 87 18. Do you think that the construction of this project can promote local economic Can not 3 13 development? do not know 0 0

can 21 91 19. Do you think that the construction of this project can improve your quality of Can not 2 9 life? do not know 0 0

Support 20 87

20. Do you support this project? Barely support 0 0

Have no idea 3 13

C. Future Public Participation Activities

198. This IEE will be disclosed on the ADB website. Any update in the IEE resulting from a change in subproject scope will be disclosed too. During the construction and operation phases, GRM will be implemented (see Chapter 8), and public participation activities will be carried out on a regular basis to ensure timely understanding and handling of public concerns. 75

VIII. GRIEVANCE REDRESS MECHANISM

A. Introduction

199. A project grievance can be defined as an actual or perceived project related problem that gives ground for complaint by an affected person (AP). As a general policy, a GRM will be established by the PIE and it will work proactively toward preventing grievances through the implementation of mitigation measures and community liaison activities that anticipate and address potential issues before they become grievances. In addition, as the project has strong public support and will not involve any involuntary land or property acquisition or resettlement, significant grievances are unlikely to happen. Nonetheless, during construction and operation, it is possible that unanticipated impacts may occur if the mitigation measures are not properly implemented, or unforeseen issues arise. In order to address complaints if or when they arise, a subproject-level GRM has been developed in accordance with ADB requirements. A GRM is a systematic process for receiving, recording, evaluating, and addressing AP’s project-related grievances transparently and in a reasonable timeframe.

B. ADB’s GRM Requirements

200. ADB’s SPS 2009 requires a project to establish a GRM to receive and facilitate resolution of AP’s concerns and complaints about the project’s environmental performance during construction and operation phases of. GRM should be scaled to the risks and adverse impacts of the project, address affected people’s concerns and complaints promptly, using an understandable and transparent process, be readily accessible to the community at no cost and without retribution, and not impede access to the PRC’s judicial or administrative remedies.

C. Current GRM Practices in the PRC

201. At the national level, a framework to address grievance has been established. State Council Decree No. 431 Regulations on Letters and Visits (January 2005) establishes a complaint mechanism at all levels of government, and safeguards the complainants from any retaliation. The former MEP Decree No. 34 Environmental Letters and Visits System provides specific guidelines to establish a system and address environmental complaints. When APs are affected by project activities, they may complain to the contractors and the project company by themselves or through their community organizations, or complain directly to local Ecology and Environment Bureau (EEB). If the issue is not resolved they may take legal action, though that is typically considered as a last option.

D. Project Level GRM

202. In order to effectively solve the problem and ensure that the environmental impacts caused by the subproject during the construction phase and operation phase are resolved, the subproject has established a transparent and effective GRM. The GRM will run through the entire construction phase and operation phase until the project is closed, ensuring the affected personnel can handle related issues through the procedure. The affected people will not be charged for the compliant and any cost from the compliant will be paid by PIE.

203. The PIE is a key point in the operation of the project GRM, which can ensure the effective operation of the subproject’s GRM. If surrounding residents, government departments and other

76 stakeholders need to know the relevant information of the subproject, the PMO could also be contacted.

204. The GRM will be implemented through four escalating steps:

Stage 1: If a concern arises, the AP can try to resolve the issue of concern either directly with the contractor, PIE or via GRM access points (community leaders, neighborhood organizations, PMO, local EEB) during the construction phase, and/or the PIE directly or via GRM access points during the operation phase. If the concern is resolved successfully, no further follow-up action is required. Nonetheless, the contractor (during construction) and/or the operator (during operation) shall record any complaint and actions taken to resolve the issues and report the results to the PMO and the AP. If no solution is found within 10 working days or if the AP is not satisfied with the suggested solution under Step 1, proceed to Step 2. The AP may also skip Step 1 and directly file the complaint with the PMO.

Stage 2: The AP will submit the grievance to the PMO. PMO will propose solutions by investigating the complaint, informing the PIE, and consulting the local EEB and other relevant stakeholders. The solution must be reported to the affected people within 10 working days, after that, PIE must implement the solution within 10 working days. If no solution is formed or the AP is not satisfied with the solution, proceed to Stage 3.

Stage 3: PMO will organize a multi-stakeholder meeting. PIE and the local EEB will be engaged as stakeholders. The multi-stakeholder meeting will aim to find a solution acceptable to all and identify responsibilities and an action plan. The PIE will ensure that the implementation of agreed-upon redress solution begins within 10 working days of the completion of the multi-stakeholder meeting. If no solution acceptable to all is found, proceed to Step 4

Stage 4: If the complainant is still dissatisfied with the solution from Stage 3, PMO will organize a hearing process and shall determine a solution acceptable to all. Based on the hearing results, an action plan shall be developed and the PIE will ensure that the implementation of the agreed-upon redress solution begins within 10 working days of the completion of the hearing.

205. If the complainants are not satisfied with the suggested solution under Step 4, the APs can access ADB’s Office of the Special Project Facilitator (OSPF) (https://www.adb.org/site/accountability-mechanism/contacts) or Compliance Review Panel (CRP) (http://compliance.adb.org/dir0035p.nsf/alldocs/BDAO-7XG526?OpenDocument), or seek local legal address.

206. PMO shall inform ADB on the complaints that have been received and the solutions, which shall be included in the environmental monitoring reports.

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Step 1：Resolution at local level Compliant redressed AP tries to resolve issue directly with the contractor or PIE within 10 working days.

Complaint Not Redressed or AP wishes to submit directly to PMO

Step 2: PMO Complaint Resolution PMO has 10 working days to investigate Compliant redressed and develop a solution and PIE will initiate implementation in 10 working days.

Complaint Not Redressed

Step 3: Multi-Stakeholder Meeting PMO organizes stakeholder meeting within 10 days and solution will be developed in the meeting. Compliant redressed PMO/PIE will initiate solution implementation in 10 working days.

Complaint Not Redressed

Step 4: Grievance Hearing PMO will organize a grievance hearing and determine a solution and an action plan.

PMO/PIE will initiate solution implementation in Compliant redressed 10 working days.

If Complaint Is Still Not Addressed, AP May Seek Legal Redress Through ADB’s Office of Special Facilitator, Compliance Review Panel, Local Legal System

Figure VIII-1: Complaint flow chart

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VIII. CONCLUSIONS

207. This IEE report has been prepared for the proposed Xi’an High-tech City Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

208. The subproject is located Xi’an High-tech Zone. The subproject is divided into two components- Weidou Road component and Chang’an Industrial Park component. The subproject will provide services to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas.

209. The subproject will bring significant positive environmental benefits. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; and (iii) significantly reduce fossil fuel consumption by 2,976.490 tons and emissions of NOx, PM and CO2 by 49.081 tons, 1.114 tons and 9419.460 tons, respectively per year and improve local air quality.

210. The subproject has: (i) selected appropriate sites for the subproject; (ii) identified potential negative environment impacts and appropriately established mitigation measures; (iii) received public support from the project beneficiaries and affected people; (iv) established effective GRM procedures; and (v) prepared a comprehensive EMP including environmental management and supervision structure, environmental mitigation and monitoring plans, and capacity building and training.

211. It is concluded that the subproject will not result in adverse environmental impacts that are irreversible, diverse, or unprecedented. Any minimal adverse environmental impacts associated with the subproject will be prevented, reduced, or minimized through the implementation of the EMP. 79

Appendix I: Environmental Management Plan

A. Introduction

1. This initial environmental examination (IEE) report has been prepared for the proposed Xi’an High-tech City Logistics Park Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

2. The subproject is located Xi’an High-tech Zone. The subproject is divided into two components- Weidou Road component and Chang’an Industrial Park component. The subproject mainly provide service to the established Zhongjiao Science and Technology Industrial Park and its surrounding areas.

3. The objectives of the EMP are to ensure (i) implementation of the identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; (ii) implementation of monitoring and reporting; and (iii) the subproject compliance with the PRC’s relevant environmental laws, standards and regulations and ADB’s SPS 2009. Organizational responsibilities and budgets are clearly identified for implementation, monitoring and reporting.

4. The EMP is to be implemented in all phases of the project cycle, including design, pre- construction, construction, and operation. In the detailed design stage, the EMP will be used by the design institute for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, as needed. The EMP will be disclosed on the ADB website (www.adb.org).

5. The EMP will be included as a separate annex in all bidding and contract documents. The contractors will be informed of their obligations to implement the EMP, and to provide for EMP implementation costs in their bids for project works.

B. Organizational arrangements and EMP implementation arrangements

6. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. SPCIG will be the project implementation entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers.

7. The PIE will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. The PIE will ensure that the EMP is implemented proactively and responds to any adverse impacts beyond those foreseen in the IEE. The PIE will also attend to requests from relevant agencies and ADB regarding the mitigation measures and monitoring program. It will nominate dedicated, trained, and qualified environment specialists to (i) supervise contractors and ensure compliance with the

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EMP; (ii) conduct regular site inspections; (iii) coordinate periodic environmental quality monitoring in compliance with the approved monitoring plan; (iv) act as local entry point for the project GRM; and (v) submit environmental monitoring reports to the PMO and EA semi-annually during construction and annually during operation. The PIE will also engage a local environmental monitoring station for environmental monitoring.

8. ADB will conduct regular review missions. PMO will prepare semi-annual/annual environmental monitoring reports and submit them to ADB. ADB will review the reports and disclose them on ADB’s website. If the subproject is incompliance with the EMP’s requirements, appropriate corrective actions shall be taken following ADB’s requirements.

9. Roles and responsibilities for the EMP implementation are presented in Table 1.

Table 1: Project implementation and management organizations Organization Role and Responsibility EA -Coordinating and overseeing project preparation and implementation. -Coordination of strategic issues at regional or national level. -Providing policy guidance and facilitation during implementation. -Coordination with other involved authorities including EEB, development and reform committee, finance bureau, land bureau etc. PMO/IA Main responsibilities include: - Responsible for subproject implementation under the guidance of EA - Prepare management and operation procedures to meet the relevant national and ADB requirements - Organize capacity building and training - Overseeing the project program and activities of the PIE in the implementation of the project outputs - Monitoring the project’s physical and financial progress and compliance with project’s reporting requirements, ensuring project progress reports are prepared and submitted to ADB on time - Solve the compliant received - Coordinating ADB’s review missions and meeting the requirements of ADB - Regularly visit the sites to check the compliance - Review the environmental monitoring reports by PIE then submit them to ADB - Requiring PIE to prepare corrective action plans in the event of noncompliance with EMP or EMoP - Review environmental monitoring reports, then submit to ADB PIE Main responsibilities include: - Contracting and administering design institute, and procurement agency - Contracting and administering contractors and suppliers. - Preparing subproject progress reports and submit to PMO - Operation and maintenance of the subproject - Preparing semi-annual environmental monitoring reports during construction and annual report during operation, and submit to PMO - Ensuring compliance with EMP, EMoP, engaging an external environmental safeguard consultant if necessary - Operation and maintenance of the subproject - Coordinating with PMO in developing subproject management procedures and detailed implementation plan, and monitoring achievement - Obtain necessary approvals from local authorities including EEB. - compliance with PRC laws and regulation and ADB’s prohibited investment activities list 81

EMC - A qualified independent environmental monitoring station will be recruited to implement the ambient monitoring portion of the EMoP. ADB - Providing the EA and IA with guidance to ensure smooth subproject implementation and achieve the desired development impacts and their sustainability - Conducting regular review missions - Monitoring the implementation of EMP and EMoP - Reviewing environmental monitoring reports and disclosing them on ADB website - Updating the subproject information documents for public disclosure at ADB website, including the safeguards documents. - Requiring PMO and PIE to develop corrective action plan for any non-compliance issues ADB = Asian Development Bank, EEB=Ecology and Environment Bureau, EMC= Environmental monitoring company EMP = Environmental Management Plan, EMoP= Environmental monitoring plan.

C. Summary of Potential Environmental Impacts and Mitigation Measures

10. The potential impacts of the subproject during pre-construction, construction and operation have been identified and appropriate mitigation measures developed (see Chapter V of the IEE). Potential impacts and the mitigation measures are presented in Table 2.

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Table 2: Environment Impacts and Mitigation Measure

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by A. Detailed Design Phase Environmental mitigation and PIE PMO, EA Detailed pollution control measures Design identified in the IEE, the EMP Budget and the domestic EIA will be incorporated into the detailed Include design. A health and safety mitigation management plan will be measures and developed to include monitoring appropriate measures to ensure program in risks to community is negligible detailed and OHS risks can be managed design to acceptable level. Recommendations in the detailed design will be implemented and included in the Incorporate bidding documents. Mitigation Environmental mitigation PIE PMO, EA Detailed Measures and measures identified in the IE, Design Monitoring in Include EMP and the domestic EIA will Budget mitigation Detailed be incorporated in the bidding Design and measures and documents and will be included Bidding and monitoring in contract documents for civil Contracting program in constructions and equipment bidding installations. All contractors shall documents be required to strictly comply with the EMP. The environmental monitoring PIE PMO, EA Detailed program will be incorporated into Design the design to ensure that Budget environmental impacts are Environmental closely monitored and activities monitoring of the project construction and incorporated operating are closely supervised into design. against the PRC environmental laws, regulations and standards, ADB SPS 2009, and the project EMP. Grievance Impacts on In accordance with the GRM PIE PMO, EA, PMO Redress project presented in Chapter VIII, a staff ADB Operating Mechanism Affected member from PIE and PMO will Budget (GRM) Persons be assigned to be overall responsible for the GRM; GRM training will be provided for PMO, PIE and GRM access points addresses and emails will be disclosed to the public. 83

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by B. Construction Phase Flora and Removal of A greening plan will be Contractor, PMO, EA Contractor Fauna vegetation implemented: PIE construction Site vegetation plans will be budget developed using appropriate native species. During construction, construction working areas will be demarcated to prevent encroachment and damage to adjacent areas. Wastewater Surface and Good wastewater management Contractor, PMO, EA, Contractor groundwater practices as set out in EHS PIE ADB construction contamination Guidelines on Construction and budget from Decommissioning and EHS construction General Guidelines: wastewater, Worker camp will be installed and domestic with sufficient toilets which will water be provided for the workers and domestic wastewater will be treated in septic tank and discharged to the municipal sewerage system on a regular basis. Once the construction starts, if it is found that toilets are not enough or there are female workers, more toilets will be provided. Construction wastewater will be directed to temporary detention and settling ponds, and then treated water will be partly recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer system and the waste residue in the tank is cleared and transported to designated certificated and engineered landfills by the local sanitation department personnel. If needed, polyacrylamide flocculent will be used to facilitate particle settling. All discharged construction wastewater will to be treated to meet the appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be treated in the

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by municipal WWTP. All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation. Storage facilities for fuels and oil within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits. The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88). Erosion and Soil erosion, Good practice construction Contractor, PMO, EA Contractor Spoil spoil disposal erosion controls and site PIE construction maintenance as set out in EHS budget Guidelines on C&D and EHS General Guidelines: At construction site, the potential for storm water runoff will be assessed and appropriate storm water drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention and settling ponds to control topsoil runoff. Land excavation and filling will 85

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by be balanced so as minimize the requirement for fill material transportation. During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. Temporary spoil storage sites will be identified, designed, and operated to minimize impacts. Spoil sites will be restored at the conclusion of storage activities. Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to Xi’an Urban Area Landfill for disposal site. Spoil and aggregate piles will be covered with landscape material and/or regularly watered. Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal. Construction and material handling activities will be limited or halted during periods of rains and high winds. Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass. Air Pollution Dust, vehicle The following air quality Contractor, PMO, EA Contractor emissions management measure and PIE construction construction good practice as budget set out in EHS Guidelines on C&D and EHS General Guidelines will be implemented: Water will be sprayed on active construction sites including where fugitive dust is being generated on a daily basis, and more frequently during windy

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by days. Transport vehicles will be limited to low speeds in construction sites. Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. Construction site roads will be well maintained and watered and swept on an as-needed basis. Construction site road entry points will be equipped with truck drive through wash ponds. Transport routes and delivery schedules will be planned to avoid densely populated and sensitive areas, and high traffic times. Store petroleum or other harmful materials if any in appropriate places and cover to minimize fugitive dust and emission. Provide regular maintenance to vehicles in order to limit gaseous emissions (to be done off-site). Temporary fencing will be erected around dusty activities. Construction spoil, aggregate and other construction materials will be temporary stored using containers, but they may still have the potential to generate dust. Thus, containers will be covered and/or watered if necessary. Powdered materials such as cement and lime will be stored in sealed bags or containers. Muddy or dusty materials on public roads outside the exits of works areas will be cleaned immediately. On-site asphalting and concrete batching are prohibited. Drilling sites will be fenced during drilling. Fence will be installed at site boundaries and 87

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by dust monitoring will be implemented at sensitive receptors to ensure compliance. Disturbed site will be revegetated as soon as possible after the completion of works. Noise Impacts from To ensure construction activities Contractor, PMO, EA Contractor construction meet PRC noise standards PIE construction noise on (Noise Standards for budget sensitive Construction Site Boundary, GB resources 12523-2011) and to protect workers, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D and EHS General Guidelines will be implemented: Construction activities will be planned in consultation with local authorities and communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in the least disturbance. Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of such night time activities in advance. When undertaking construction planning, simultaneous high- noise activities will be avoided, and high noise activities will be scheduled during the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by operating at the same location. Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise. Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines. Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. Vehicles transporting construction materials or waste will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools, and hospitals. Special attention will be paid to protect sensitive sites near the subproject site. High noise construction activities will be positioned as far away from sensitive sites as possible. Drilling site will be enclosed by fence to reduce noise, if necessary. Solid Waste Inappropriate The following solid waste Contractors, PMO, EA Contractor Waste management measure and local construction Disposal construction good practice as sanitation budget set out in EHS Guidelines on departments C&D and EHS General (domestic Guidelines will be implemented: waste), Wastes will be reused or licensed recycled to the extent possible. waste Littering by workers will be collection prohibited. companies Excavated soil will be backfilled (construction onsite to the extent possible. waste) Excess spoil that cannot be used on-site will be transported 89

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by to Xi’an Urban Area Landfill for disposal site. Domestic waste containers will be used for domestic waste collection at work sites. Domestic waste will be collected on a regular basis by the local sanitation departments and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil, waste from drilling and contaminated soils that remain on the site after construction. Storage facilities for fuels and oil, if any will be within secured areas on impermeable surfaces provided with dikes with a 110% volume, and at least 300 m from drainage structures and important water bodies. A standalone site within the storage facility will be designated for hazardous wastes. Signs will be placed at hazardous materials storage sites to provide information on type and name of chemicals and hazardous materials.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Socioeconomic Community Transportation routes and Contractors, PMO, EA Contractor Resources Disturbance delivery schedules will be PIE construction and Safety planned during detailed design budget to avoid densely populated and sensitive areas and high traffic times. Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools, and hospitals. Signs will be placed at construction sites in clear view of the public, warning people of potential dangers such as moving. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate. Socioeconomic Worker Contractors will implement Contractor, PMO, EA LIEC Resources Occupational adequate precautions to protect PIE Budget Health and the health and safety of their Safety workers: Each contractor will undertake H&S risk assessment of construction works and implement relevant construction phase EHS plan in line with construction good practice as Contractor set out in EHS Guidelines on construction C&D and Occupational H&S budget guidelines. Identify and minimize the causes of potential hazards to workers. Implement appropriate safety measures. Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and storage, handling, and disposal of hazardous waste. Induction will be conducted before construction and no worker is allowed on site without 91

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by induction. Ensure that all equipment is maintained in a safe operating condition. Provide appropriate PPE to workers. Implement COVID-19 prevention measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID- 19 Provide procedures for limiting exposure to high noise or heat working environments in compliance with PRC occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and World Bank EHS Guidelines. Ensure regular safety meetings with staff. Physical Yet unknown A construction phase chance Contractors PIE In the event Cultural PCRs may be find procedure will be supported that a PCR Resources damaged if established and activated if any by local is proper chance finds of PCRs are Cultural discovered, precautions encountered: Heritage the direct are not taken construction activities will be Bureau cost for immediately suspended if any comp- PCRs are encountered; ensation to destroying, damaging, defacing, contractor or concealing PCRs will be will be strictly prohibited in accordance covered by with PRC regulations; a special local Cultural Heritage Bureau fund to be will be promptly informed and devel-oped consulted; and, for cultural construction activities will relic resume only after thorough protection. investigation and with the permission of the local Cultural Heritage Bureau.

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by In case of any PCR is found, ADB SPS 2009 requirements as well as PRC laws and regulations will be followed.

C. Operation Phase

Air Pollution Vehicle Keep good maintenance of PIE PMO, PIE emission, vehicles and road. EEB, EA operation cooking fume Landscape plants will be planted budget at the subproject site to improve the ambient air quality. Cooking fume will be treated by oil fume purifier with an exhaust air volume of 2,000 m3/h and a removal efficiency at 75%, then discharged by flue pipe. Wastewater Discharge of Domestic wastewater generated PIE PMO, EA, PIE Wastewater by the subproject is pretreated EEB operation by the septic tank and discharge budget to domestic sewer system. The subproject will generate production wastewater during operation from vehicle washing. The wastewater will be treated by oil-water separator and recycled. Solid Waste Collection and The domestic garbage waste PIE, District PMO, EA, PIE Disposal generated is required to be Sanitation EEB operation classified and then collected, Departments budget transferred, and disposed by local the sanitation department. The daily generated domestic waste shall be cleared collected on a daily basis to prevent secondary pollution. Waste package materials will be sold to manufactures for recycling. Kitchen waste will be collected, transferred, and disposed by third party certificated company. Oily waste is classified as hazardous waste and will be collected, transported, and treated by a certified 3rd party hazardous waste treatment company. Besides, a temporary hazardous waste will be built. 93

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Noise Impact on Low-noise equipment will be PIE PMO, EA, PIE Sensitive used as far as possible, and EEB operation Receptors noise reduction measures such budget as noise elimination, shock absorption, insulated enclosures and sound dampening materials on exterior walls will be implemented. All equipment will be properly maintained in order to minimize noise. Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S. Layout of subproject sites will be reasonable planned to reduce noise. Noise monitoring will be conducted at the site boundaries and sensitive receptors for compliance. Community Risks to Operation phase EHS plan and PIE PMO, EA PIE and Workers and traffic management plan will be operation Occupational Community developed and implemented budget Health and and workers will be trained Safety regularly on their implementation. The nearby communities will be informed of the potential risks and the emergency response plan. PPE including goggles, gloves, safety shoes will be provided to workers. Noise protection equipment will be provided to workers in high-noise area. Implement COVID-19 prevention measures, including disinfection/cleaning of offices, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of

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Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff is infected with COVID-19. Provide training to workers on occupational health and safety, and emergency response. Transporting vehicles will slow down to 30 km/h and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools, and hospitals. Regular maintenance of vehicles to minimize potential accidents caused by equipment malfunction. Subproject sites will be fence with restricted public access. 95

Potential Responsibility Mitigation Measures and/or Source of Category Impacts and Safeguards Implemented Supervised Funds Issues by by Emergency Emergency A draft emergency risk and PIE PMO, EA PIE Response Response response has been established operation in accordance with the “National budget Environmental Emergency Plan” (24 January 2006), other relevant PRC laws, regulations and standards, as well as World Bank EHS Guidelines and ADB’s SPS 2009 and will include measures in the World Bank EHS guidelines with respect to occupational and community health and safety. The plan must be established and in place before the plant is operational. Indicative plan requirements are as follows: − Procedures for responding to different types of emergency situations will be identified in the response plan. − Emergency exercises will be conducted and they should include different emergency scenarios.

Training Requirements − Appropriate operating and maintenance employees will be trained to ensure that they are knowledgeable of the requirements of emergency response plan. Annual Emergency Simulation − Simulated emergency exercises will be conducted at least annually. Communication with Public Officials − When an emergency resulting in a hazard to the public safety occurs, the local fire department, police, the city medical emergency center and other relevant public officials should be notified. An emergency call list will be prepared and make it available at the plant control room.

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D. Environment Monitoring Plan

11. There are three types of project monitoring in the EMP.

i) Compliance monitoring. It is conducted by PMO.

ii) Internal monitoring. It is conducted by PIE for internal environmental monitoring including air quality and noise monitoring during the construction phase, and noise monitoring during the operation phase.

iii) External monitoring. It is conducted by a qualified environmental monitoring company, including monitoring of ambient air and noise during construction phase, and noise monitoring during operation phase.

12. ADB will review the compliance of the project based on the semi-annual/annual environmental monitoring reports submitted by the PMO and the on-site investigation. The monitoring and reporting arrangements for this subproject are listed below.

(1) Project preparation review

13. Before the subproject starts construction, PIE will evaluate the preparations for the environmental management in a series of indicators (See Table II) and report the assessment results to ADB and PMO. This assessment needs to prove that before the subproject starts, all environmental commitments are implemented, environmental management systems are in place, or corrective actions are in place to ensure that project owners meet the requirements. Some of these commitments are particularly important because some of the information related to them is not submitted in the TA stage, or they are not properly resolved due to the late submission in the TA phase.

Table 3: Evaluation values of project preparation phase

Indicator Criteria Evaluation

Is environmental supervision in The EIA institute is hired (IA) Yes No place? Is it consistent with loan The borrower must ensure that the project design and EMP are Yes No agreements and consistent with the loan agreement loan guarantees? Public Adequate public participation survey Yes No participation The GRM was effectively established Yes No effectiveness Does the contract The bidding documents and contracts shall list the environmental contain protection and safety guarantees that need to be observed in the Yes No environmentally loan guarantee. safe content

Site construction The PIE has the site construction planning Yes No planning 97

Provide documentation that the solid waste disposal unit has Solid waste sufficient capacity and willingness to accept the solid waste Yes No management (including domestic waste, hazardous waste, etc.)

Financial support PIE need to ensure the funds to implement EMP Yes No for EMP

(2) Project monitoring

14. The environmental monitoring plan of this subproject is shown in Table III, which stipulates the scope, location, parameters, duration, and frequency of monitoring during construction and operation phase, and the corresponding responsible units. Internal environmental monitoring includes noise monitoring during the construction phase, and external monitoring includes dust, noise and waste water monitoring during construction and monitoring of noise and wastewater during operation.

15. The environmental monitoring implementation standards are shown in Table IV. The results that exceed limits of the standard should be highlighted in the monitoring report. The monitoring results are first submitted to the PIE, who will then incorporate it in the semi-annual environmental monitoring report during construction and annual report during operation, and submit them to PMO and PMO will review the reports and submit them to ADB.

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Table 4: Environmental Monitoring Plan Cost Monitoring Monitoring Executive Regulatory (ten Project Indicator location frequency agency Authority thousand yuan) Construction phase (2 year) Environmental Site Dust TSP Quarterly monitoring PIE 16.0 boundary agency Quarterly Equivalent with one Environmental continuous A- Factory daytime noise Noise monitoring PIE 6.4 level sound boundaries and one agency Leq nighttime noise. Wastewater COD, pH etc. discharge Quarterly Environmental Wastewater following PRC point of the during monitoring PIE 6.0 requirements construction construction agency site Compliance inspection of Monthly implementation during of solid waste Waste construction PIE, local management Solid Waste collection and Contractor sanitation NA measures disposal sites. department Waste On a regular collection by basis local sanitation department Compliance Storage inspections of facilities for Hazardous and implementation fuels and oil. Monthly Polluting of hazardous Vehicle and during Contractor PIE, EEB NA Materials materials equipment construction management maintenance measures areas. Compliance inspection of land clearing to Monthly Flora and ensure Construction during Contractor PIE, EEB NA Fauna mitigation site construction measures are being implemented Compliance Monthly inspection of Socioeconomic Construction during implementation Contractor PIE, EEB NA Impacts site construction of traffic control season measures 99

Compliance inspection of EHS measures including Monthly records on Construction during EHS near miss, Contractor PIE, EEB NA site construction minor, major, season fatal accidents, and an Emergency Response Plan Total construction phase (2 year) 28.4 Operation phase (first 2 years) One measuring Equivalent every six Environmental continuous A- Site months, and Noise monitoring PIE, EEB 14.4 level sound boundaries one time in the agency Leq daytime and the other in the nighttime. COD, pH etc. Wastewater Environmental following discharge Wastewater Quarterly monitoring PIE 10.0 PRC point of the agency requirements sites Compliance inspection of EHS measures including records on EEB, other near miss, Construction EHS Monthly PIE relevant NA minor, major, site authorities fatal accidents and an Emergency Response Plan Total operation phase of Project (2 years) 24.4 Total 52.8

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Table 5: Monitoring Indicators and Applicable Standards Stage Indicator Standard Dust at the site Dust Emission Limit at Construction Site Boundary boundary TSP (DB61/1078-2017) Noise limits for Noise Emission Standards for Construction Site Boundaries Construction construction plant (GB12523-2011) phase boundaries Leq

Integrated Standards for Wastewater Discharge (GB8987- Waste water 1996)

Site boundary noise Noise Emission Standards for Industrial Enterprises at Plant Operation Leq Boundary (GB 12348-2008) phase Integrated Standards for Wastewater Discharge (GB8987- Waste water 1996)

(3) Compliance assessment

16. PMO conducts an independent assessment of the subproject's EMP conformity and PMO can hire LIEC if necessary. The PIE will prepare environmental monitoring reports which should include compliance of the subproject with the EMP and local laws; independent evaluation results (the PIE and its contractors are in compliance with the EMP and a qualified environmental monitoring agency issue environmental monitoring results); environmental-related implementation issues discovered and necessary corrective actions; the operation and performance of the subproject’s GRM; the capacity enhancement and training conducted and the compliance of all terms of the subproject.

Table 6: Reporting requirements Reporting Submitted Report Frequency party to Construction phase Environmental Semi-annual Environmental monitoring report PIE PMO, EA monitoring report Environmental Semi-annual Environmental monitoring report PMO/EA ADB monitoring report Operation phase

Environmental Environmental monitoring report PIE PMO, EA Annual report monitoring (first two years during operation)

Environmental Environmental monitoring report PMO/EA ADB Annual report 101

monitoring (first two years during operation)

E. Institutional Strengthening and Capacity Building

17. The institutional strengthening and capacity building focus on the safeguard requirements of relevant PRC laws and regulations and the ADB SPS 2009. The training will focus on the ADB SPS 2009; PRC safeguard requirements; development and implementation of EHS plans during construction and operation; implementation of the EMP, the EMoP, and the GRM; and worker and community health and safety issues and measures (Table 7).

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Table 7: Institutional strengthening and training program

Traini # Tra Atte D Budge ng Contents Times Perso iners ndees ays t (USD) Topic ns ADB and PRC laws, regulations and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety laws, policies, standards, and Trainin regulations 2 g Const − International environmental, (once Develop ruction health and safety management prior to ment

Phase practice in civil irrigation and start of Environ Contra construct Fixed LIE drainage construction ment, ctors, ion, and 2 30 costs: C GRM Health PIE then $2000 − GRM structure, responsibilities, and once per and timeframe Safety during course − Types of grievances and Training construct delivery x eligibility assessment ion) 2 = Implementation of $ 4,000 Construction Phase EMP − Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions ADB and PRC laws, regulations, and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety Trainin laws, policies, standards, and g 2 Develop Opera regulations (once ment tion − International environmental, prior to Phase health and safety management start of Environ practice in civil irrigation and operatio Fixed ment, LIE drainage operation PIE n, and 2 30 costs: Health C GRM then $2000 and − GRM structure, responsibilities, once per Safety and timeframe during course Plan − Types of grievances and second delivery x Training eligibility assessment year) 2 = Implementation of Operation $4,000

Phase EMP − Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions Total 6 60 $8,000 103

F. Performance Indicators

18. Performance indicators (Table 8) have been developed to assess the implementation of the EMP. These indicators will be used to evaluate the effectiveness of environmental management during the subproject implementation.

Table 8: Performance Indicators

No. Description Indicators (i) Appoint appropriately qualified environmental and social staff. 1 Staffing (ii) 3rd party environmental monitoring entity engaged. (i) Environment mitigation cost during construction and operation is sufficiently and timely allocated. 2 Budgeting (ii) Environment monitoring cost is sufficiently and timely allocated. (iii) Budget for capacity building is sufficiently and timely allocated. (i) Compliance monitoring is conducted as per EMP and EMoP. 3 Monitoring (ii) Construction phase and operation phase environmental monitoring is conducted by environmental monitoring company. (i) PMO review the implementation of EMP. 4 Supervision (ii) ADB review environmental monitoring reports. (i) Semi-annual/annual environmental monitoring reports prepared by the PIE are submitted to PMO 5 Reporting (ii) PMO submit semi-annual/annual environmental monitoring reports to ADB. Capacity (i) Training on ADB safeguard policy, EMP implementation, and GRM is 6 Building provided during subproject implementation. (i) GRM contact persons are designated at the PIE and the PMO, and Grievance GRM contact information disclosed to the public before construction. 7 Redress (ii) All complains are recorded and processed within the set time Mechanism framework in the GRM of this IEE. Compliance with (i) Project complies with the PRC’s environmental laws and regulations 8 PRC standards and meets all required standards.

G. Cost budget

19. The implementation cost of the EMP includes three parts: mitigation measures, environmental monitoring, and training (Table 9). The following costs are excluded from the budget: (i) revision and adjustment of the design; (ii) cost of infrastructure related to the environment and public health, which has already been included in the subproject’s direct investment; (iii) Remuneration of PIE environmental and social staff. All the budget is estimated based on project experience similar to this project.

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Table 9: Estimated Budget for Implementing EMP (Unit: 10,000 yuan) Mitigation Monitor Training (Table Item GRM LIEC Total measures (Table 4) 7)

Budget 5.0 55.0 52.8 6.0 30 148.8

Total 5.0 55.0 52.8 6.0 30 148.8

H. Mechanisms for Feedback and Adjustment

20. The effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. If, during compliance inspections and monitoring, substantial deviation from the EMP is observed, the PMO and PIE will propose appropriate changes to the EMP and the environmental monitoring plan.

21. Any EMP adjustments will be subject to ADB review and approval and ADB may pursue additional environmental assessment and, if necessary, further public consultation. The revised EMP with ADB confirmation is subject to reposting on the ADB’s website as the ADB public communications policy requires. The revised EMP will be passed on to the contractor(s) for implementation.