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51399-001: Eco-Industrial Park Waste-To-Energy Project

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51399-001: Eco-Industrial Park Waste-To-Energy Project Environmental and Social Compliance Audit Report Project Number: 51399-001 April 2019 PRC: Eco-Industrial Park Waste-to-Energy Project Prepared by Guangzhou GreenWorld Company Limited for the Asian Development Bank. This environmental and social compliance audit report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Environmental and Social Compliance Audit Report PRC: Eco-Industrial Park Waste-to-Energy Project Taiyuan Waste-to Energy Subproject April 2019 Shanghai SUS Environment Co., Ltd. Asian Development Bank TABLE OF CONTENT EXECUTIVE SUMMARY .......................................................................................................................... 1 1. INTRODUCTION ......................................................................................................................... 6 1.1 Background .................................................................................................................................. 6 1.2 Objectives ..................................................................................................................................... 6 1.3 Methodology ................................................................................................................................ 7 2. COMPLIANCE FRAMEWORK ................................................................................................. 7 2.1 ADB Safeguard Requirements .................................................................................................. 8 2.2 PRC Environmental Regulations .............................................................................................. 9 2.3 Evaluation Standards ............................................................................................................... 10 2.4 PRC Health and Safety Regulations ...................................................................................... 16 2.5 PRC Land and Social Regulations ......................................................................................... 17 3. DESCRIPTION OF THE PROJECT....................................................................................... 17 3.1 Project Rationale ....................................................................................................................... 17 3.2 Project Area ............................................................................................................................... 18 3.3 Subproject Components .......................................................................................................... 23 3.4 Associated/Linked Facilities .................................................................................................... 25 3.5 Subproject Progress ................................................................................................................. 27 4. ENVIRONMENTAL AUDITING FINDINGS ........................................................................... 27 4.1 Compliance with applicable requirements of national laws and regulations, ADB SPS and international industry best practice standards .............................................................................. 27 4.2 Audit of the Project Design ...................................................................................................... 28 4.3 Audit of the Environmental Impact Assessment ................................................................... 31 4.4 Audit of the Environmental Management Plan ..................................................................... 43 4.5 Compliance with national laws and regulations, SUS’ ESMS requirements, ADB SPS on information disclosure, consultation and participation (past, continuing and planned). .......... 48 i. 4.6 Corrective Action and/or Supplemental Studies ................................................................... 50 5. SOCIAL AUDIT FINDINGS ..................................................................................................... 55 5.1 Impacts of the Project ............................................................................................................... 55 5.2 Policy framework and entitlement........................................................................................... 60 5.3 Public Participation, Consultation and Information Disclosure .......................................... 65 5.4 Grievance Redress Procedure ................................................................................................ 65 5.5 Agencies ..................................................................................................................................... 66 5.6 Monitoring & Evaluation ........................................................................................................... 67 5.7 Other Social Issues ................................................................................................................... 67 5.8 Conclusions and Recommendations/Corrective Action Plans ........................................... 69 Appendix 1 Safeguard Categorization Checklist ................................................................................. 71 Appendix 2 Personnel met for the compliance auditing ..................................................................... 83 Appendix 3 Land and Social Related Laws and Regulations ................................... 84 Appendix 4 Domestic EIA Approval ...................................................................................................... 89 APPENDIX 5 Ambient Environmental Quality Monitoring Results ................................................... 93 Appendix 6 Air Quality Modelling Results .......................................................................................... 100 Appendix 7 Site-specific EMP .............................................................................................................. 117 Appendix 8 Indicative Standard Operation Procedures for Operation ........................................... 118 Appendix 9 Environmental Monitoring Plan ....................................................................................... 119 Appendix 10 GRM on Environment ..................................................................................................... 121 Appendix 11 Taiyuan EIP Phase I Land Acquisition Contract with Dongnanshe Village 124 Appendix 12 SUS Taiyuan Company Signed a 30-Years Free Use Land Agreement with TSAB 126 Appendix 13 Decision on Allocation of State-Owned Construction Land for SUS Taiyuan WTE Project 127 Appendix 14 Public Consultation Records Submitted by Dongnanshe Village ...... 130 ii. iii. EXECUTIVE SUMMARY Shanghai SUS Environment Co., Ltd. (SUS) is proposing for ADB funding, a WTE project in the Taiyuan City, Shanxi Province, People’s Republic of China (PRC) (the WTE Project) as first subproject of the PRC: Eco-Industrial Park Waste-to-Energy Project. As part of its due diligence, ADB requires an environmental and social compliance due diligence of the subproject (Taiyuan WTE) for ADB financing, including a review of key documents, including the Environmental Impact Assessment (EIA) report and an on-site assessment, to identify past or present concerns related to risks and impacts on the environment, involuntary resettlement and Indigenous Peoples during construction and operation. The objectives of the environmental and social compliance due diligence are to determine whether actions were and are in accordance with the requirements of ADB’s SPS, SUS’s enhanced ESMS, applicable national laws and regulations and good international industry practices, identify if there are outstanding compliance issues and prepare a corrective action plan, if needed. Construction of Taiyuan WTE plant was commenced in September 2017 and is expected to be complete in March 2019. The commissioning is scheduled in June 2019. At the time of the on- site assessment, which was conducted on 11 to 12 December 2018, the construction progress is estimated at 70%. Key actions to be taken on environmental aspects are as follows: Key Findings Recommended actions 1. EIA The key contents of EIA report were It was reported by the Taiyuan Sanitation summarized in section 4.3. Administration Bureau (TSAB) staff that the EIA for the EIP planning is on-going. The EIA report only considered the Planning EIA is a strategic EIA that cumulative impact from the kitchen waste evaluates the environmental impacts of the treatment plant which is operating since EIP development and operation as a November 2016 without consideration of whole. The cumulative impacts reflected in other waste treatment facilities for the EIP planning EIA shall be reported in development or being developed within the the annual environmental and social EIP. It was noted that a sludge treatment plant performance monitoring report of the and wastewater treatment plants are under subproject as a supplementary study. construction at the time of site visit. Taiyuan WTE will quantify the direct and The EIA report did not include an assessment indirect GHG emission from
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