Due Diligence Report of Environment

Project Number: 44036 September 2015

PRC: Anhui Chao Lake Environmental Rehabilitation Project

Prepared by Anhui Provincial Project Management Office (APPMO)

For Subproject H1 Hefei City Binhu New District Beilaowei Environment Improvement Subproject L1 Chao Lake Basin Lu’an Eastern New Town District Water Environment Improvement Subproject WW1 Wuwei County Wucheng Water Environment (Wuwei Section of Xi River) Integrated Improvement

This due diligence report of environment 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.

CURRENCY EQUIVALENT

$1 = CNY6.3549 (on 3 September 2015)

ABBREVIATIONS

ADB - Asian Development Bank A2/0 - Anaerobic-anoxic-oxic AP - Affected Person APG - Anhui Provincial Government As - Arsenic BOD5 - 5-day biochemical oxygen demand Cd - Cadmium CLMA - Chao Lake Management Authority CNY - Chinese Yuan COD - Chemical oxygen demand Cr - Chromium DFR - Draft final report DMF - Design and Monitoring Framework DRC - Development and Reform Commission EA - Executing Agency EFS - Engineering Feasibility Study EHS - Environmental Health and Safety EIA - Environmental Impact Assessment EIR - Environmental Impact Report EMP - Environmental Management Plan EPB - Environmental Protection Bureau EPD - Environmental Protection Department FSR - Feasibility Study Report FYP - Five-Year Plan GHG - Greenhouse Gas GRM - Grievance Redress Mechanism H2S - Hydrogen sulfide HDD - Horizontal directional drill HDPE - High density polyethylene Hg - Mercury IA - Implementing Agency IEE - Initial Environmental Examination IFC - International Finance Corporation IPCC - Intergovernmental Panel on Climate Change IUCN - International Union for the Conservation of Nature LAS - Linear alkylbenzene sulfonate LDI - Local design institute MEP - Ministry of Environmental Protection NDRC - National Development and Reform Commission NGO - Non-governmental Organization NH3-N - Ammonia nitrogen Ni - Nickel NPS - Non-point source O&G - Oil and grease O&M - Operation and Maintenance PAM - Polyacryl amide Pb - Lead PE - Polyethylene

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PM10 - Particular matter in the air with diameter ≤10μ PMO - Project Management Office PPTA - Project Preparatory Technical Assistance PRC - People's Republic of China PS - Pumping station PSA - Poverty and Social Assessment RP - Resettlement Plan RSP - Respirable suspended particulate SIA - Social Impact Assessment SO2 - Sulfur dioxide SS - Suspended solids TA - Technical Assistance TN - Total nitrogen TOR - Terms of Reference TP - Total phosphorus TSP - Total suspended particulate USD - United States Dollar UV - Ultra violet WTP - Water Treatment Plant WWF - World Wildlife Fund WWT - Wastewater Treatment WWTP - Wastewater treatment plant Zn - Zinc

WEIGHTS AND MEASURES Ha – Hectare (=15mu) Km – Kilometer km2 – square kilometer hm2 – square hectare M – Meter m/s – meter per second kg/s – kilograms per second m2 – square meter m3 – cubic meter m3/d – cubic meters per day mg/m3 – milligrams per cubic meter mg/L – milligrams per liter mg/kg – milligrams per kilogram μg/L – micrograms per liter t/a – tons per year mm – Millimeter cm – Centimeter °C – degrees centigrade H – Hour

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TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ...... 1 A. Background ...... 1 B. Minor Changes in the Project Design ...... 1 C. Purposes and Objectives of This Report ...... 6 D. Project Benefits Updates...... 7 E. Project Impacts and Mitigation Measures Updates ...... 7 II. Updates on POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 8 A. Rational for the Minor Changes in the Three Subprojects ...... 8 B. Legal and Administrative Framework Updates ...... 9 C. Laws, Regulations, Guidelines and Standards Updates...... 10 D. Area of Influence and Evaluation Standards for Subproject Sectors...... 10 III. Updated DESCRIPTION OF THE PROJECT ...... 11 A. General ...... 11 B. Municipal Point Source Pollution Control ...... 13 C. Non‐Point Pollution Control ...... 25 D. Climate Change Adaptation Considerations ...... 37 IV. Updated DESCRIPTION OF THE ENVIRONMENT ...... 37 A. General ...... 37 B. Physical Setting ...... 37 C. Biological Resources, Ecology and Biodiversity ...... 49 D. Socio‐economic Conditions ...... 49 E. Physical Cultural Resources ...... 49 V. DUE DILIGENCE REVIEW ON ANTICPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 49 A. Positive Impacts and Environmental Benefits ...... 49 B. Impacts Associated with Project Location, Planning and Design ...... 52 C. Impacts and Mitigation Measures during the Construction Stage ...... 55 D. Impacts and Mitigation Measures during the Operational Stage ...... 62 E. Cumulative Impacts ...... 66 F. Environmental Health and Safety ...... 66 VI. ANALYSIS OF ALTERNATIVES ...... 67 A. No Project Alternative Updates ...... 67 B. Alternatives Considered Updates...... 67 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 68 A. Public Participation during Project Preparation ...... 68 B. Future Plans for Public Participation ...... 69 VIII. GRIEVANCE REDRESS MECHANISM ...... 70 IX. UPDATED ENVIRONMENTAL MANAGEMENT PLAN ...... 70 A. Objectives ...... 70 B. Inspection, Monitoring, and Reporting ...... 71 X. CONCLUSIONS AND RECOMMENDATIONS ...... 72 A. Expected Project Benefits ...... 72

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B. Adverse Impacts ...... 72 C. Risks ...... 72 D. Follow‐up Monitoring and Environmental Management Requirements ...... 73 Appendix I Updated Environmental Management Plan ...... 74 Appendix II Domestic EIA Approval Documents ...... 75 Appendix III SITE PHOTOS ...... 82

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I. EXECUTIVE SUMMARY

A. Background

1. This Environment Safeguards Due Diligence Report (DDR) is an environmental safeguards reportfor the Anhui Chao Lake Environmental Rehabilitation Project, for proposed minor engineering design changes in the three subprojects H1, L1 and WW1.

2. Anhui Province is located in the eastern part of the PRC. Both the Yangtze River and the Huai River flow through Anhui Province. Chao Lake is located in the middle of the province (Map I.1).It is the fifth largest freshwater lake in the PRC. Yet the Lake has been decreasing in size due to urbanization and land development around the Lake. Wetlands are disappearing. Water quality in the Lake is deteriorating due to untreated wastewater discharges and agricultural runoff into the river systems in the Chao Lake Basin. River sediments are laden with high levels of nitrogen and phosphorus, releasing into the river water flowing into Chao Lake. Rivers in the Basin also suffer from neglect, with eroded river banks covered with grasses and weed, as well as garbage from illegal dumping. Conditions are unsanitary, sometimes unsafe due to unstable river banks from soil erosion, and ineffective in flood control.

Map I.1: Project Location

B. Minor Changes in the Project Design

2. Interventions from Anhui Chao Lake Environmental Rehabilitation Projectwill contribute to prevention and control of water pollution in the Chao Lake Basin, which supports the national and Anhui Province objectives and the actions and projects identified in the FYPs. Environmental improvements will be achieved in 13 sub-project areas located in the Hefei

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Municipality, Lu’an Municipality, Hanshan County and Wuwei County, through the implementation of four components. The four outputs are:

 Municipal Point Source Pollution Control. This output includes two categories of interventions: (i) construction of wastewater collection systems in developed urban areas that are currently un-sewered and interception of sewer discharges that currently flow directly and untreated into tributaries of Chao Lake; and (ii) design and construction of WWTPs in areas where collection systems will be constructed under the project but there is currently no WWTP or the present one is undersized. All WWTPs constructed under the project will be of Class 1A design which provides for active nutrient removal.

 Non-Point Pollution Control. This output includes six categories of intervention; (i) dredging of polluted sediments from the beds of rivers flowing into Chao Lake and river outflows; (ii) stabilization of eroding embankments on selected sections of rivers flowing into Chao Lake; (iii) implementation of a solid waste collection and transfer project in Feidong County to control a troublesome source of floatables in that area; (iv) construction of engineered wetlands in Chao Lake itself; (v) construction of an engineered wetland on the banks of one of the lake’s tributaries; and, (vi) support for a pilot NPS pollution control activity focusing on the control of agricultural pollution sources.

 Strengthened capacity within the CLMA. This output will comprise an institutional development and capacity building program for CLMA. The program will include staff training through domestic and international educational programs, equipment procurement, and a series of priority studies on: (i) management of Chao Lake basin based on the division of functional districts, (ii) early-warning capacity for cyano-bacterial algae blooms, and (iii) mechanisms to apply and promote achievements of demonstration projects in controlling NPS pollution.

 Strengthened capacity within the project management offices (PMOs). This output will provide support through an international consulting company recruited to provide technical advice to PMO in engineering design review, procurement, and project management and supervision. Relevant PMO staff will receive training at the start of the project, including training on financial management and reporting, disbursement and procurement procedures, safeguards requirements, and reporting.

3. Minor Changes Identified During the Loan Review Mission in May 2015 - Under Subproject-H1, length of river dredging and embankment construction will be increased from 3.878 km to 6.0 km. This was defined a minor scope change. The CLPMO submitted to ADB on 21 May 2015 a proposal for this minor scope change including a brief justification. The sites of wastewater treatment plants (WWTPs) under Subprojects L11 and WW1 were changed. The ADB mission confirmed that these are changes of the locations only and not scope changes. The above-mentioned scope change and the changes of the WWTP

1 According to the Updated Resettlement Plan for Chao Lake Basin Lu’an Eastern New Town District Water Environment Improvement Subproject disclosed on ADB website in Feb 2014, ‘Since the administration division of Lu'an Eastern New Town District, where the Subproject locates in has been adjusted and overall planning of the district has been adjusted accordingly, the former site of the Subproject in cross of Wangjiang Road and Shouchun Road is no longer in accord with the requirement of the overall planning and became long-term land of the Subproject. Meanwhile roads nearby have been adjusted, which goes against short construction of the WWTP. After several field visits and negotiation with related departments, comparison of sites of the Subproject was reconducted and new site was chosen. The site was changed to middle north part of the Eastern New Town District, cross of Wengfeng Road and Yiyuan Avenue, west of Yiyuan Avenue and east of Binhe Avenue. It is open space now. The site after change is more reasonable in technical and practical in economic and easier to prevent and control urban water pollution and improve urban infrastructure and economic development.’

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locations have made or will make some revisions to the RPs and ADB version EIA report. This Environment Safeguards Due Diligence Report aims to address above mentioned minor changes.

Table I.1 Summary of Minor Changes in Hefei City Binhu NewDistrict Beilaowei Environment Improvement Project (Subproject H1)

Category of No. Original plan Current plan Description update 1 River The river (i) Extend the watercourse along The reason to change: rehabilitation rehabilitation length is Yunnan Road to west to In order to facilitate the 3.9km, starting from Shanghai-ChengduExpressway, the flood protection and Yunnan road in the length will be increased by 2.1km and drainage in the new west and ending at the total length will be about6.0km district, it is proposed in Chao Lake in the east (ii)A flood gate (inlet from Beilaowei the preliminary design ditch to the estuary) and a flood to extend the river drainage pumping station (southwest of rehabilitation length by the intersection between Chaohu River 2.1km. and Huanhu North Road) will be installed 2 Wetland Construction of 30 Move the wetland to the low point of the The reason to change: eco-restoration hectares of lot and river centerline to southranging Based on lakeside land eco-wetland at the from 200 to 400m, the site is in the use and development, north entrance of range of current fish pond and the it is proposed in the Beilaowei ditch to areakeeps the same. preliminary design to Chao Lake Two additional much smaller construct the wetland centralized wetland treatment units will at a lower lying-land be developed at the water source inlet upstream for rainwater (0.14ha) and at the downstream of the WWTP (0.07ha). Changes of Additional: environmental No resident on both sides of dredging protection (several temporarily guarding houses 3 objectives of 2814 fishing ground on both sides of dredging. One additional villages-Hudaying -had been resettled through another domestic project) Changes of Additional: project (i) 11,560m3 of dredging materials and environmental 34,650m3 of sludge wastewater will be impacts additionally generated (ii) Overflow dam impact on flood discharge. Under this subproject, two overflow dams will be constructed 4 upstream of Yunnan Road (K0+640 and K1+660) (iii) Impacts from drainage pumping station and flood gate (iv) Two additional much smaller centralized wetland treatment units will enhance river rehabilitation.

Changes of Additional: environmental Relevant laws and regulations issued in mitigation the recent two years include: measures Management Measures for Dust Pollution Control in Hefei (effective from 5 February 1, 2014), Anhui Province’s Air Pollution Control Action Plan(Anhui Provincial Government, December 2013). Additional measures have been incorporated in the domestic TEIF.

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Affected villages The main resettlement impacts of the (resettlement) Subproject are permanent and 6 - - temporaryland occupation. In the Subproject, the Beilaowei (Chaohu Project River) River Managementand Wetland resettlement Subproject will occupy 1010.1 mu of 7 - - impacts rural collective land, all beingcultivated land, affecting 497 households with Affected 2371 persons in Shugang persons VillageNanhe Village, Bingzi Village, (resettlement) Weiwang Village and Miaowei Village. The sludgedredged from river 8 - management would be used in wetland - construction, leading to notemporary silt dump area. 6 types of infrastructure and ground attachments will beaffected by the Subproject. Source of resettlement information: Updated Resettlement Plan for the Hefei City Binhu New District Beilaowei Environment Improvement Project, disclosed on ADB website in July 2015

Table I.2 Summary of Minor Changes in Lu’an Subproject (L1)

Category of No. Original plan Current plan Description update Adjustment of Proposed site is in the Proposed site is in middle north part The reason to change the the site of the northeast of the of the Eastern New Town District, site: the administration WWTP Eastern New Town cross of Wengfeng Road and division of Lu'an Eastern District, cross of Yiyuan Avenue, west of Yiyuan New Town District, where Wangjiang Road and Avenue and east of Binhe Avenue. It the Subproject locates in Shouchun Road is open space now. has been adjusted and overall planning of the 1 New WWTP-original location of district has been adjusted Xunchun Road PS accordingly, the former site Shengli Road PS- original location of the Subproject in cross of WWTP of Wangjiang Road and Wangjiang Road PS: unchanged Shouchun Road is no longer in accord with the requirement of the overall planning. Changes/updat - Huangshiliu village with 5 househols es of and 20 people, 53m north of the 2 Environmental Lu’an WWTP site, fell within the protection scope and have been relocated objectives under other domestic projects. Changes/updat - During construction, the noise levels es of Project during the nighttime at all of environmental sensitive receptors within 50m impacts radius of the pipeline network will exceed the standard.

The effluent receiving water body, It is recommended that Hangpi Drainage Channel (mainly well operation for agricultural irrigation), will be management and 3 significantly impacted. The emergency preparedness predicted results indicate that the be paid sufficient attention. COD, NH3-N and TP will be increased from baseline 10mg/m3, 0.168 mg/m3 and 0.065 mg/m3 to 16.47mg/m3, 0.94 mg/m3 and 0.13 mg/m3 after full operation, which still can meet the Grade III under GB 3838-2002 Environmental Quality

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Standard for Surface Water(COD 20 mg/m3, NH3-N1.0 mg/m3 and TP 0.2 mg/m3 correspondingly ). The effluent flow rate of WWTP is about 0.23m3/s (=20,000m3/d) under full capacity operation, while the Pihang Drainage Channel of 1.2m3/s during dry season. Changes/updat - A minimum distance of 100m will be es of established as a buffer distance 4 Environmental from Lu’an WWTP to nearest mitigation sensitive receptor. measures Affected village Shangdun Group and Shunhe Group and Liushitai Group Pipe network will be by WWTP Laojiaying Group of of Laojiaying Village, Sanshipu town adjusted accordingly, 5 (resettlement) Guantang Village, location of pump station Sanshipu town has not been changed Project impacts 99.69 mu of land will be 99.69 mu of land will be acquired The total area of land (resettlement) acquired permanently permanently for the Subproject, acquisition has not for the Subproject, including 98.19 mu (98.5%) of changed. including 97.69 mu cultivated land and 1.5 mu of pond 6 (98%) of cultivated (1.5%) Attachment: 7 telegraph land and 2 mu of pond poles, 9 tombs (2%) Attachment: 6 telegraph poles, 6 tombs Affected 33 households with 28 households with 145 persons persons 168 persons were were affected by the Subproject 7 (resettlement) affected by the permanently Subproject permanently Source of resettlement information: Updated Resettlement Plan for Chao Lake Basin Lu’an Eastern New Town District Water Environment Improvement Subproject disclosed on ADB website in Feb 2014

Table I.3 Summary of Minor Changes in Wuwei Subproject (WW1)

Category of No. Original plan Current plan Description update Adjustment of Proposed site Proposed site is located at the intersection The reason to change the the site of the is located in the between Huanchengbei Road and Jingsi site: change of Wuwei WWTP north of the Road as in Wuwei County’s master plan. County’s master plan intersection (to Chenjia village about 1.5km west from (approved by local planning 1 between the original location in Zhanglao village) authority on 12 May 20142) Huanchengbei and difficulties in Road and resettlement Fudong Road 2 Cancellation Use one PS Cancelled The existing sewerage PS of the PS under located at 320m south of construction the intersection of located at Changjiang Road and 320m south of Dongmengwai Avenue will the intersection be used instead. of Changjiang Road and Dongmengwai Avenue Changes/updat - Newly added: Chenwan Village( Longwan es of Village) 3 Environmental protection objectives

2Information from the DI.

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Changes/updat - Although the effluent of the Wuwei WWTP es of Project under subproject WW1 will not significantly environmental deteriorate the Xi River as the receiving impacts water body, the effluent discharge point is located about 2km upstream existing water intake of the Water Supply Plant’s of Cangtou Community in Wucheng Town. Based on the evaluation report on Wuwei WWTP Effluent Discharge Point into Xi River prepared by Anhui Provincial Hydrological Bureau and Wuhu Municiapality Water Fuction Zoning, the main water bodies nearby the subproject 4 were re-classified and demarcated. The section of effluent discharge point was confirmed as Grade III under GB 3838-2002 Environmental Quality Standard for Surface Water. Before the WWTP construction is completed, the water intake will be moved downstream by 1.5km, as promised by Wuwei County Government, to ensure drinking water safety and irrigation. Based on the prediction in the domestic TEIF, the water quality of Xi River will both comply at 2km and 5km downstream. Changes/updat Disinfection:U Disinfection: ClO2 es of V A minimum distance of 200m will be Environmental established as a buffer distance from mitigation Wuwei WWTP (WW1) to nearest sensitive measures receptor.It is suggested no 5 population-densely project (e.g. residential buildings and schools) or environmentally sensitive project (e.g. food and medicine) should be developed within 200m radius of the WWTP. Affected village - This project will affect Yuanyou and - by WWTP Chenwan natural villages of Shibei 6 (resettlement) administrative village, FuduTown, Wuwei County in Wuhu City. The project will Project impacts The project will occupy 68.4 Mu lands permanently, which - (resettlement) occupy 52.5 are allcollectively-owned land. The 7 mu lands temporary land occupation for construction permanently is 60.5Mu (roads are basicallybuilt along Affected - the pipe network, so that the construction - persons does not need land acquisition or (resettlement) demolition). Theland acquisition will affect 8 27 households, 102 people; no house acquisition influence, and thisresettlement plan is an update version. Source of resettlement information: Updated Resettlement Plan for the Wuwei County WuchengWater Environment Integrated Improvement Subproject: Wuwei Section of Xihe River, disclosed on ADB website in July 2015

C. Purposes and Objectives of This Report

4. This environmental safeguarddue diligence report is prepared by the APPMO in accordance with the ADB Safeguards Policy Statement (2009). This due diligence report was prepared based on existing local EIA reports, which are listed in following table.

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Table I.4: Summary of Domestic EIAs, EIA Institutes and Approval Authorities Subproject Report Type EIA Institute Approval Authority Approval Date

H1 (Hefei City Binhu TEIF Anhui Provincial HefeiMunicipal EPB 12 June 2014 New District Technological Beilaowei Consulting Center Environment Improvement)

L1 (Chao Lake TEIF Lu’anKehuan Lu’an Municipal 20 May 2013 Basin Lu'an Eastern Environmental EPB New Town District Consulting Water Environment Company Improvement)

WW1(Wuwei TEIF Hefei DI for Coal WuhuMunicipal EPB 19 August 2014 County Wucheng Industry Water Environment (Wuwei Section of Xi River) Integrated Improvement)

Source: the PMOs/IAs of three subprojects EPB: Environmental Protection Bureau TEIF: Tabulated Environmental Impact Form Reports

5. This report contains: (i) the findings from environmentsafeguards due diligence, (ii) the proposed revision of the project’s environmental management plan (EMP) reflecting the project scope changesin H1, L1 and WW1 subprojects.; and (iii) summary and conclusions of this additional environment safeguards due diligence.

D. Project Benefits Updates

6. Through the implementation of these 4 components in the 13 sub-project areas, approximately 1,670t of total nitrogen and 614t of total phosphorus will be removed from the Chao Lake Basin through the dredging and disposal of 2.15 million m3 of sediment. This sediment, rich in nutrients but low in other pollutant levels, could be used for landscape or agricultural purposes. Wastewater collection and treatment will reduce pollutant loading in the river systems each day by 12,504t of biochemical oxygen demand (BOD), 23,822t of chemical oxygen demand (COD), 15,769t of suspended solids (SS), 1,333t of total nitrogen (TN), 265t of total phosphorus, and 1,714t of ammonia nitrogen (NH3-N).Wetlands rehabilitated under this project have been estimated to be able to remove 47t TN, 12t TP, 168t BOD, 56t COD and 28t NH3-N each year. The 3 artificial wetlands constructed by the project will improve the available nesting, feeding, breeding and nursery habitats for wildlife, promoting biodiversity in Chao Lake.

E. Project Impacts and Mitigation MeasuresUpdates

7. Construction and operation of these components do have potential impacts to the environment in the 13 sub-project areas. Approximately 250.73 ha of land will be permanently lost to make way for the above facilities. Dust and noise generated by construction activities will be a nuisance to nearby residents. Discharge of wastewater from construction sites and supernatant water from the dredged sediment disposal sites could potentially pollute nearby water bodies. Dredging will stir up the sediment, releasing suspended solids and nutrients into the water column affecting water quality and ecology. Operation of WWTP, wastewater

7/81 pumping stations and refuse transfer stations could generate odor and noise impacts and the design and installation of odor removal systems and noise reduction equipment etc. will be implemented. According to predictions in the domestic Environmental Impact Reports(EIR) and updated Tabulated Environmental Impact Form Reports (TEIFs), these impacts should be acceptable with the provision of mitigation measures and sound environmental management during the construction and operational stages of the project.

8. To facilitate sound environmental management, this environmental safeguards due diligence report provides an undated Environmental Management Plan (EMP) with 4 major components: mitigation, monitoring, public consultation and training. The undated EMP provides a plan for training and capacity building of the implementing agencies (IA) so that they will be able to perform environmental management, to implement all the mitigation measures and to conduct environmental monitoring. Mitigation measures listed in the updated EMP covers the design, construction and operational stages of the project, because some measures that will become permanent features of the facilities will need to be designed into the facilities. It is also important that the mitigation measures are included in tender documents so that they could be implemented during the construction and operational stages. Environmental monitoring is important to measuring the impact during construction and operation, as well as quantifying the benefits of this project during operation. The undated EMP explains who will do what, where and when on environmental monitoring.

II. UPDATES ON POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

A. Rational for the Minor Changes in the Three Subprojects

9. Background Updates.The present average water quality in the lake is Grade IV under the PRC’s national environmental water quality standard (suitable as an industrial water supply and for non-contact recreation), although 37.5% of the state-controlled water monitoring sections in the lake falls into Grade V (suitable only for agricultural and landscaping uses) according to the Report on the State of the Environment in China in 2014 (http://jcs.mep.gov.cn/hjzl/zkgb/2014zkgb/201506/t20150605_303011.htm). This represents an improvement over the situation in 2005, when average water quality in the lake was Grade V+, but it is significantly below the government’s long term objective of Grade III (suitable as a supply source for a municipal drinking water treatment plant and for swimming).

10. Pollution status. According to PRC’s Environmental Quality Standard for Surface Water (GB 3838-2002), 12.5 % of the 8 state-controlled water quality monitoring sections in Chao Lake were Grade III surface water quality, and 50% were Grade IV,3 while the other 37.5% were Grade V according to the Report on the State of the Environment in China in 2014. The main pollutants were TP and COD. GB 3838-2002 describes that Grade IV water is suitable for industrial use and non-contact human recreation, while Grade V water is suitable for agricultural and general waterscape use.

11. Since 1990 Chao Lake has absorbed large quantities of nutrients causing seasonal algal blooms affecting water supply intakes and causing the decline of fish stocks. Due to poor infrastructure and inadequate environmental management, untreated or partially treated wastewater has been discharging directly into rivers and streams that flow into Chao Lake. Over utilization of chemical fertilizer and intensive animal farming has also resulted in widespread and excessive agricultural non-point source pollution in the basin, with drainage and run-off water containing high levels of nutrients. This project in fact has one sub-project for

3The PRC’s Environmental Quality Standard for Surface Water (GB 3838-2002) defines five water quality Grades for different environmental functions.Grade 1 is the best, Grade V is the worst.

8/81 a pilot study on agricultural non-point source pollution, which is not covered in this EIA. According to the Report on the State of the Environment in China in 2014 and the Report on the State of the Environment in Anhui in 2014, Chao Lake was graded as low eutrophication, with the eastern half of low eutrophication meeting Grade IV but the western half of medium eutrophication meeting Grade V.

12. APG’s 12th FYP for Environmental Protection is also being implemented by APG.The Plan sets up discharge caps for COD, ammonia nitrogen (NH3-N) and TP by year 2015.It also establishes targets for surface water, with (i) less than 20% of the national monitoring locations being worse than Grade V and more than 40% being Grade III or better, and (ii) less than 10% of the provincial monitoring locations being worse than Grade V and more than 60% being Grade III or better.Recognizing pollution problems at the rural level, the Plan sets a 45% solid waste sanitary treatment target for villages by 2015.The Plan identifies a number of priority tasks needed for achieving these targets.These include (i) building wastewater collection and treatment infrastructure with emphasis on effluent reuse and nutrient removal; (ii) tackling industrial wastewater pollution particularly the paper mill factories; (iii) tackling agricultural non-point source pollution; (iv)institutional strengthening on managing pollution reduction; and (v) promoting priority projects on pollution prevention and control in the Chao Lake basin.Interventions in this project all fit into APG’s 12th FYP for Environmental Protection.

13. Minor Changes Identified During the Loan Review Mission in May 2015. Under subproject H1, length of river dredging and embankment construction will be increased from 3.878 km to 6.0 km. This was defined a minor scope change. The APPMO submitted to ADB on 21 May 2015 a proposal for this minor scope change including a brief justification. The sites of wastewater treatment plants (WWTPs) under subprojects L1 and WW1 were changed. The ADB mission confirmed that these are changes of the locations only and not scope changes. The above-mentioned scope change and the changes of the WWTP locations have made or will make some revisions to the RPs and ADB version EIA report. This environmental safeguardsdue diligence report is to address those above minor changes.

B. Legal and Administrative FrameworkUpdates

14. The project comprises of 13 sub-projects located in the Hefei Municipality, Lu’an Municipality, Hanshan County and WuweiCountyin Anhui Province (see Map III.1), for which 13 Environmental Impact Reports (EIR) and 3 updated Tabulated Environmental Impact Form Reports (TEIFs) (in 2014)4were prepared by five PRC environmental design institutes in accordance with the provisions of PRC Environmental Impact Assessment Law of 2003 and the Construction Project Environmental Management Regulations of 1998.All 13 EIRs and 3 updated TEIFshave received approval from the local (city) environmental protection bureaus (EPB) in January/February 2012 and in 2013/2014 respectively (on 12 June 2014 by Hefei Municipal EPB for H1, 20 May 2013 by Lu’anMunicipal EPB for L1, and 19 August 2014 by Wuhu Municipal EPB for WW1 ).This updated consolidated EIA report is based on information and findings provided in these 16domestic EIA documents.The release of the Environmental Impact Assessment Public Participation Interim Guideline in 2006 also requires that the public be involved in the EIA process.Public consultation is not mandatory for Class B project according to PRC’s EIA requirements. These were undertaken specially for this ADB project so some were later then the TEIF approval date for the three subprojects involving minor changes (H1, L1 and WW1).

4 The three components involving minor changes (H1, L1 and WW1) were all classified as Class B by local EPBs who approved the updated EIA documents, requiring Tabulated Environmental Impact Form Report (TEIF) .

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Table II.1: Domestic EIAs, EIA institutes and approval authorities Subproject Report Type EIA Institute Approval Authority Approval Date

H1 (Hefei City Binhu New TEIF Anhui Provincial HefeiMunicipal EPB 12 June 2014 District Beilaowei Environment Technological Improvement) Consulting Center

L1 (Chao Lake Basin Lu'an TEIF Lu’anKehuan Lu’an Municipal EPB 20 May 2013 Eastern New Town District Environmental Water Environment Consulting Improvement) Company

WW1(Wuwei County TEIF Hefei DI for Coal WuhuMunicipal EPB 19 August 2014 Wucheng Water Environment Industry (Wuwei Section of Xi River) Integrated Improvement)

Source: the LPMOs/IAs of three subprojects EPB: Environmental Protection Bureau TEIF: Tabulated Environmental Impact Form Reports

C. Laws, Regulations, Guidelines and StandardsUpdates

15. PRC Requirements. The following requirements of the PRC have been updated to govern the way in which environmental protection and environmental impact assessment for construction projects must be implemented since the appraisal of this Project in 2012.

i. Ambient Air Quality Standard (GB 3095-2012); ii. Air Pollution Control Action Plan, State Council, Guofa No. 37 in 2013

16. Anhui Provincial Requirements. The following requirements of the Anhui Province relevant to this project have been updated since the appraisal of this Project in 2012. These requirements form the basis and rationale for this project.

i. Chao Lake Basin Water Pollution and Control Regulation, December 22, 1998 and its revision in 2014. ii. Management Measures for Dust Pollution Control in Hefei, effective from February 1, 2014 iii. Anhui Province’s Air Pollution Control Action Plan, Anhui Provincial Government, December 2013

D. Area of Influence and Evaluation Standards for Subproject Sectors

17. The assessment areas for air, noise, surface water and ecological impacts are defined by the technical guidelines for environmental impact assessment in the PRC, based on the environmental sensitivity of the sub-project areas and vicinity as well as the nature of the sub-project and its components. The domestic EIRs and updated TEIFs followed these guidelines in defining the assessment areas. The assessment areas for various environmental components of the sub-project areas are shown in Table II.2, with the ecological assessment area adjusted and the cultural heritage assessment area added for this project.

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Table II.2:Assessment Areas

Environmental Component Assessment Area Within 200m from construction site boundaries during construction. For WWTP Air operation, (5 x 5) km2 along the dominant wind direction. Within 200m from construction site boundaries during construction. For WWTP Noise operation, within 1m from the WWTP boundary.. Within 1000m upstream and 1,000m downstream of the works area within Surface water water bodiesand their embankment. For WWTP operation, within 200m upstream and 5,000m downstream of the treated effluent discharge point. Ecology Construction “footprint”. Cultural heritage Construction “footprint”.

18. There are many sensitive receptors near the 13 sub-project areas, too many to be listed here and will be presented in Chapter IV when discussing existing environmental conditions.This is especially true for the wastewater collection component where approximately 580 km of pipelines will be installed. The nature of this component is to provide wastewater collection for households. As such, installation works would be close to these households, which are sensitive receptors to dust and construction noise impacts. Pipelines are installed by sections in a linear fashion. When one section is installed, construction activities move on. Sensitive receptors along the pipeline route would therefore be exposed to short durations of dust and noise impacts, most likely from a few weeks to a few months. Instead of strenuously identifying the sensitive receptors along the approximately 580 km pipeline routes for impact assessment, focus would be put on environmental mitigation and management measures for pipeline construction in the EMP to reduce impact to these sensitive receptors.

III. UPDATED DESCRIPTION OF THE PROJECT

A. General

19. The project comprises four outputs (i) increased control of municipal point sources of wastewater emissions; (ii) improved control of several different sources of NPS pollution within the catchment; (iii) strengthened institutional capacity within the Chao Lake Management Authority(CLMA); and, (iv) strengthened project management capacity within participating project management offices and implementing agencies.

20. The project is organized through 13 sub-projects (Map III.1).Of these 13 sub-projects, 10 are located in the Hefei Municipality and one each in the Lu’an Municipality, Hanshan County and Wuwei County respectively.These sub-projects and their respective components are summarized in Table III.1.

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Map III.1: Sub-projects and Their Locations

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Table III.1: Summary of Sub-projects and Components

Component

No. Sub-project River Wetland Wetland Collection Collection Treatment Wastewater Wastewater Solid Waste Management Management Rehabilitation Rehabilitation Rehabilitation

Hefei City Binhu New District Beilaowei √ √ H1 √ √ Environment Improvement (change) (change) Feidong County Chao Lake Basin (Changlin H2 River Region) Water Environment Integrated √ √ Improvement Feidong County Chao Lake Basin (Cuo Town H3 Region) Water Environment Integrated √ √ √ Improvement Feixi County Integrated Improvement for H4 √ √ √ Rivers Flowing into Chao Lake Banqiao River Upstream Area Water H5 √ √ Environment Integrated Improvement Hefei City Chao Lake Bank Water H6 Environment Improvement and Ecological √ √ Rehabilitation Chaohu City Urban District Water H7 √ √ √ Environment Integrated Improvement Chaohu City Water Environment Integrated H8 Improvement of Zhegao River and Tongyang √ √ √ River Chao Lake Huatang River outflow Ecological H9 √ Wetland Lujiang County Water Environment Integrated H10 √ √ Improvement of Xian River and Its Tributaries Chao Lake Basin Lu'an Eastern New Town L1 √ √ District Water Environment Improvement Hanshan County Qingxi River Water HS1 √ √ √ Environment Integrated Improvement Wuwei County Wucheng Water Environment WW1 (Wuwei Section of Xi River) Integrated √ √ Improvement Total 10 10 7 1 4

Notes: “H” denotes sub-projects in Hefei Municipality; “L” denotes sub-project in Lu’an Municipality; “HS” denotes sub-project in Hanshan County; “WW” denotes sub-project in Wuwei County.

B. Municipal Point Source Pollution Control

21. General. This output includes two categories of interventions: (i) construction of wastewater collection systems in developed urban areas that are currently un-sewered and interception of sewer discharges that currently flow directly and untreated into tributaries of Chao Lake; and (ii) design and construction of WWTPs in areas where collection systems will be constructed under the project but there is currently no WWTP or the present one is undersized. All WWTPs constructed under the project will be of Class 1A design which provides for active nutrient removal.

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22. Wastewater Collection. This component intercepts wastewater that is currently discharged into Chao Lake and the rivers flowing into it. This will improve the living environment of the residents and protect public health. Component contents are summarized in Table III.2.

Table III.2: Summary of the Wastewater Collection Component5

/d) /d) No. Sub-project 3 (km) (m No. of Station Service Pipeline Pumping Area (ha) Collected Length of Length Size of the Quantity of Quantity of Wastewater

Hefei City Binhu New District Beilaowei H1 85.150 1 113,000 2,707 Environment Improvement Feidong County Chao Lake Basin (Cuo H3 Town Region) Water Environment 46.180 1 30,000 1,550 Integrated Improvement Feixi County Integrated Improvement for H4 133.610 1 60,000 5,020 Rivers Flowing into Chao Lake Banqiao River Upstream Area Water H5 30.185 --- 138,500 3,534 Environment Integrated Improvement Chaohu City Urban District Water H7 28.567 1 20,000 600 Environment Integrated Improvement Chaohu City Water Environment H8 Integrated Improvement of Zhegao River 77.12 1 29,600 2,173 and Tongyang River Lujiang County Water Environment H10 Integrated Improvement of Xian River 22.2 --- 14,900 768 and Its Tributaries Chao Lake Basin Lu'an Eastern New L1 Town District Water Environment 87.97 2 40,000 2,902 Improvement –after change –before change 87.97 2 43,100 2,902 Hanshan County Qingxi River Water HS1 27.68 --- 10,500 680 Environment Integrated Improvement Wuwei County Wucheng Water WW1 Environment (Wuwei Section of Xi River) 41.5616 0 25,000 1,425 Integrated Improvement –after change –before change 45.304 1 24,900 2,535 Total–after change 580.223 7 481,500 21,359 Note: 1. Updated on the basis of the updated domestic TEIFs and FSRs for subproject H1, L1 and WW1. 2. The IA of subproject L1stated that the figues above are for short term serving for 50,000 people. In the long term, the wastewater collection capacity will be expanded to 160,000t/d, serving area of 65.38km2 with 400,000 people.

23. A total of 580 km of wastewater collection pipes will be installed—423 km in Hefei Municipality, 88 km in Lu’an City, 28 km in Hanshan County, and 42 km in Wuwei County—which will provide incremental collection capacity of 481,500 m3/day and serve an incremental area of 21,359 ha. The collection systems will include construction of 7 pump stations—5 in Hefei Municipality and 2 in Lu’an City. Eight WWTPs will be constructed with a

5Updated in July 2015. 6 According to the information provided by the DI, the main pipes are designed to serve for 100,000t/d with 220,000 people and an area of 32.08km2, while the branch pipes for 25,000 t/d with an area of 14.25 km2.

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total design capacity of 166,000 m3/day; including 5 WWTPs in Hefei Municipality (111,000m3/day), one in Lu’an City (20,000 m3/day), one in Hanshan County (10,000 m3/day), and one in Wuwei County (25,000 m3/day).

24. Of the 481,500 m3 of wastewater each day, 318,500 m3 (from sub-projects H3, H5, H10 and part of H4)7 will be conveyed to existing wastewater treatment plants (WWTP) for treatment and the remaining 163,0008 m3 will be conveyed to WWTPs to be built under this project. In sub-project H4, wastewater collected by 13.6 km of the network will be conveyed to an existing WWTP, with the rest going to a new WWTP to be built under this project.

25. Materials selected include PE/HDPE for pipes with diameters less than 500mm and reinforced/pre-stressed concrete for pipes with diameters larger than 500mm. Construction methods include both horizontal directional drill (HDD) [also called pipe jacking] and open cut. When pipes are to be installed 6.0m below ground, underneath rivers, or going through obstacles, HDD will be applied. While open cut is a conventional method for pipeline installation, HDD should be considered whenever the geotechnical and external conditions allow, since it causes less destruction to the road surface and less social, environmental and traffic impacts to the public.

26. Wastewater Treatment. This component treats wastewater that is currently discharged into Chao Lake and the rivers flowing into it. This will improve the water quality of the receiving water bodies, as well as the living environment of residents and protect public health. Component contents are summarized in Table III.3.

27. The newly constructed WWTPs are expected to generate dewatered sludge. The sludge of 0.34 t/day from Wuwei County will be sent to the Wuhu City incinerator power plant and the remainder will be collected by local sanitation department then used as landscaping fertilize in the short term-When the sludge disposal facility in Wuwei County is in place, the sludge will be transported there for centralized disposal(aerobic composting,to start operation in 2017)-or disposed of in municipal solid waste landfills either directly, or after further drying--9 t/day from Beilaowei WWTP in Hefei Municipality—or solidification—16.1m3/day from the WWTP in Lu’an County to Lu’ansludge disposal facility to start operation in 2016.

Table III.3: Summary of the Wastewater Treatment Component9

7 This figure cited from the CEIA is not very accurate because the subtotal collection capacities from sub-projects H3, H5, H10 and part of H4 will be 243,400m3/d. No detailed data is available during this due diligence, so the original data is kept here. 8 3,000m3/d insignificant under-capacity due to 3,100m3/d lower collection capacity in subproject L1 and 100m3/d higher collection capacity in subproject H1 in comparison with those at appraisal. 9Updated in July 2015.

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Design Discharge Size of Name of No. Sub-project Capacity Treatment Process to Water Service WWTP (m3/d) Body Area (ha) Hefei City Binhu New Biological aeration District Beilaowei Beilaowei filter + flocculation H1 30,000 Beilaowei 2,707 Environment WWTP filtration + UV Improvement disinfection Feixi County A2/O oxidation ditch Integrated Feixi County + flocculating H4 Improvement for Zhongpai 50,000 Pai River 4,990 filtration + UV Rivers Flowing into WWTP disinfection Chao Lake Chaohu City Urban Carrousel-AC District Water Chao Lake oxidation ditch + H7 Environment South Bank 20,000 Yuxi River 600 flocculating filtration Integrated WWTP + UV disinfection Improvement Chaohu City Water Xiagezhen Xiage 5,000 760 Environment WWTP A2/O oxidation ditch River Integrated + flocculating H8 Improvement of Tongyangzhen filtration + UV Tongyang 6,000 833 Zhegao River and WWTP disinfection River Tongyang River Chao Lake Basin Hydrolytic Lu'an Eastern New Lu’an Eastern Acidification +A2/O Hangpi Town District Water L1 New Town 20,000 oxidation ditch + Trunk 2,902 Environment District WWTP flocculating filtration Culvert Improvement + UV disinfection –after change A2/O oxidation ditch Lu’an Eastern Pihang + flocculating –before change New Town 20,000 Trunk 2,613 filtration + UV District WWTP Culvert disinfection Hanshan County A2/O oxidation ditch Qingxi River Water Tian River, Lintouzhen + flocculating HS1 Environment 10,000 then Yuxi 680 WWTP filtration + UV Integrated River disinfection Improvement Wuwei County Wucheng Water Modified Environment (Wuwei Wuwei County Carrousel-AC WW1 Section of Xi River) Town East 25,000 oxidation ditch + Xi River 1,425 Integrated WWTP flocculating filtration

Improvement + ClO2 disinfection –after change Carrousel-AC Wuwei County oxidation ditch + –before change Town East 25,000 Xi River 1,359 flocculating filtration WWTP + UV disinfection Total–after change 8 166,000 14,897 Note: 1. Updated on the basis of the updated domestic TEIFs and FSRs for subproject H1, L1 and WW1. 2. The IA of subproject L1stated that the figues above are for short term serving for 50,000 people. In the long term, the wastewater collection capacity will be expanded to 160,000t/d, serving area of 65.38km2 with 400,000 people. .

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28. Eight WWTPs with 166,000 m3/d combined treatment capacity will be built, servicing a combined catchment of 14,897 ha. All WWTPs will adopt tertiary treatment with ultra-violet (UV) or ClO2 (only for WW1 subproject) disinfection, discharging effluent meeting Class 1A standard, which is the most stringent standard, under PRC’s GB 18918-2002: Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant. Class 1A standard is the basic requirement for effluent reuse. It applies to treated effluent discharging into small rivers and lakes with limited assimilative capacity for scenic or general reuse purposes. Standard for Class 1A effluent discharge is shown in Table III.4.

Table III.4: Maximum Allowable Concentrations of General Control Parameters (Daily Average) for Class 1A Effluent Discharge according to GB 18918-2002.

No. General Control Parameter Class 1A, mg/l 1 Chemical Oxygen Demand (COD) 50

2 Biological Oxygen Demand (5-day) (BOD5) 10 3 Suspended Solid (SS) 10 4 Oil and Grease (O&G) 1 5 Petroleum oil 1 6 Linear Alkylbenzene Sulfonates (LAS) [see note 1] 0.5 7 Total Nitrogen [as N] 15

8 Ammonia Nitrogen (NH3-N) [as N] 5 (8) [see note 2] 9 Total Phosphorus [as P] 0.5 10 Color (dilution multiplier) 30 11 pH 6 - 9 12 Fecal Coliform (number per liter) 103 Notes:1: LAS is also known as anionic surfactant 2: Data outside bracket are applied to water temperature > 12oC, while data in bracket are applied ≤ 12oC

29. Due to stringent discharge standard, all WWTPs will adopt secondary treatment followed by tertiary treatment then disinfection. To tackle the odor problem, all plants will install odor removal systems using activated carbon, chemical absorber or biological absorber.

30. For secondary treatment, most adopt the A2/O oxidation ditch process. This is a mature and dependable process developed in the 1970s. The wastewater goes through anaerobic-anoxic-oxic (thus A2/O) treatment in the oxidation ditch (which is a modified activated sludge process) for effective removal of BOD, nitrogen and phosphorus. One sub-project proposes the Carrousel oxidation ditch process, which adopts the Carrousel AC process, featuring an efficient oxidation system in oxygen transfer and mixing, and partitioned anoxic zones within the Carrousel basin. This process enables solid suspension to be maintained, and with easily adjustable dissolved oxygen levels by varying oxygen input, making the system adaptable to nutrient removal.

31. The tertiary treatment process involves filtration with flocculation/coagulation. Filtration media include membrane, bio-membrane and activated carbon, with different types of filtration tanks.

32. Almost all sub-components will use UV radiation to disinfect the wastewater prior to discharge. UV disinfection is superior to chlorination because no chlorination by-product will be formed and it is safer to use than chlorine. However, UV disinfection requires a relatively ‘clear’ liquid, meaning the wastewater flowing around the UV lamps has to have low turbidity. UV lamps contain mercury and broken or worn out lamps are deemed as hazardous waste upon disposal. Besides, WW1 will use ClO2(chlorine dioxide) to disinfect the wastewater prior to discharge. ClO2 disinfection is being used in another currently operated Wucheng WWTP in Wuwei County so the IA of subproject WW1 has some operational experiences. Chlorine

17/81 dioxide (ClO2) is effective as both a disinfectant and an oxidant in wastewater treatment. It has several distinct chemical advantages (more effective,relatively unaffected by pH change,non- formation of chlorinated by-products,and relatively easy to generate) comparedto the traditional use of chlorine in wastewater treatment.But as ClO2 gas is explosive under pressure, it must be generated on-site.10Wastewater meeting PRC Class 1A standard should be suitable for both UV and ClO2 disinfection.

33. All sub-projects are looking for effluent reuse opportunities in the long term, in form of supplementary water to rivers and lakes for scenic use, street cleaning, or irrigation of landscape.

34. Proper disposal of wastewater sludge is important to prevent polluting the land or water. Sludge disposal strategies for the sub-projects are shown in Table III.5.

Table III.5: Disposal Strategies for Wastewater Sludge11

10 From the Water Treatment Manual:Disinfection, The Environmental Protection Agency in Ireland. 11Updated in July 2015.

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Sludge Quantity No. Sub-project Disposal Facility after Dewatering FeidongFuxing Sludge Hefei City Binhu New District Beilaowei Treatment Facility for further H1 9 t/d Environment Improvement drying, then to Municipal solid waste landfill Feixi County Integrated Improvement for Rivers H4 3.75 t/d Municipal solid waste landfill Flowing into Chao Lake Chaohu City Urban District Water Environment H7 21 m3/d Municipal solid waste landfill Integrated Improvement Chaohu City Water Environment Integrated Wanshan Solid Waste H8 Improvement of Zhegao River and Tongyang 1.71 t/d Landfill River Chao Lake Basin Lu'an Eastern New Town Lu’an Municipal Solid Waste 16.1 m3/d (80% L1 District Water Environment Improvement Disposal Facility(150t/d, to moisture content) –after change be operated by 2016) Lu’an Sludge Treatment Facility for solidification, –before change 3.9 t/d then to Lu’an Municipal Solid Waste Landfill Hanshan County Municipal Hanshan County Qingxi River Water HS1 3.5 t/d Solid Waste Sanitary Environment Integrated Improvement Landfill Wuwei Environmental Sanitation Department for Wuwei County Wucheng Water Environment landscaping and greenery in 3.4 t/d (Wuwei Section of Xi River) Integrated short term, then to Wuwei WW1 (according to the Improvement Municipal Solid Waste preliminary design) –after change Disposal Facility(aerobic composting, to be finished in 2017)12 Wuhu City Incinerator –before change 2.0 t/d Power Plant

Note: Updated on the basis of the updated domestic TEIFs and FSRs for subprojectH1(2014), L1(2013) and WW1(2014).

35. After dewatering by belt-press or centrifuge, the sludge will be sent to disposal facilities. This is the most common practice in the PRC, and of the seven sub-projects with WWTP component, six will send their dewatered sludge to local municipal solid waste landfills. Among these, two will send the sludge to sludge treatment facilities first for further drying or solidification, before disposal to municipal solid waste landfills. One sub-component, WW1, will send the sludge to the Wuwei Environmental Sanitation Department for landscaping and greenery in short term, then to Wuwei Municipal Solid Waste Disposal Facility (aerobic composting) to be finished in 2017.

36. The locations of wastewater treatment plants (WWTPs) under subprojects L1 and WW1 are proposed to change.However, all other features of the two subprojects will be kept unchanged.(i)Proposed Location Change ofLu’an Eastern New District Water Environment Improvement Subproject(to Huangshiliuvillage ). This subproject includes construction of a wastewater treatment plant with capacity of 20,000m3/d and a land area of

12It corresponds to the subproject’s time horizon. In case of later delivery of aerobic compostingfacility, referring to para. 143 of this report :‘…The sludge, in the short term, is to be collected by local sanitation department and to be used as landscaping fertilize. When the sludge disposal facility in Wuwei County is completed, the sludge will be transported there for centralized disposal.’

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6.36 ha. Additional land has been reserved for future expansion to a total capacity of 160,000m3/d. The WWTP will be constructed in a vacant lot at the middle part of the Eastern New District, surrounded by Yiyuan Avenue, Binhe Avenue, Wenfeng Road and Shouchun Road. The pipeline network will cover an area of 29.02km2 (planned Jinzhai Road to the north, Hefei-Wuhan Railway to the south, planned Wangjiang Road to the east and Sanyuan River to the West). (ii) Proposed Location Change of Wuwei County Wucheng Water Environment (Wuwei Section of Xi River) Integrated Improvement Subproject (to Chenjia village about 1.5km west from the original location in Zhanglao village). This subproject mainly includes Chengdong WWTP and associated pipelines. The design capacity of the WWTP is 25,000m3/d, which will be expanded to 100,000m3/d in the long term. In the short term, 41.561km of pipelines will be installed. The WWTP will occupy a land area of 4.56 ha.

Table III.6 Summary of Minor Changes in Lu’an Subproject (L1)

Category of No. Original plan Current plan Description update Proposed site is in the Proposed site is in middle north part The reason to change the northeast of the of the Eastern New Town District, site: the administration Eastern New Town cross of Wengfeng Road and division of Lu'an Eastern District, cross of Yiyuan Avenue, west of Yiyuan New Town District, where Wangjiang Road and Avenue and east of Binhe Avenue. It the Subproject locates in Shouchun Road is open space now. has been adjusted and Adjustment of overall planning of the 1 the site of the New WWTP-original location of district has been adjusted WWTP Xunchun Road PS accordingly, the former site Shengli Road PS- original location of the Subproject in cross of WWTP of Wangjiang Road and Wangjiang Road PS: unchanged Shouchun Road is no longer in accord with the requirement of the overall planning. 2 - Huangshiliu village with 5 Changes/updat households and 20 people, 53m es 13 of north of the Lu’an WWTP site, fell Environmental within the scope and have been protection relocated under other domestic objectives projects. - During construction, the noise levels during the nighttime at all of sensitive receptors within 50m radius of the pipeline network will exceed the standard. It is recommended that The effluent receiving water body, best practices onWWTP Hangpi Drainage Channel (mainly operation management for agricultural irrigation), will be and emergency Changes/updat significantly impacted. The preparedness be applied es of Project predicted results indicate that the with. 3 environmental COD, NH3-N and TP will be impacts increased from baseline 10mg/m3, 0.168 mg/m3 and 0.065 mg/m3 to 16.47mg/m3, 0.94 mg/m3 and 0.13 mg/m3 after full operation, which still can meet the Grade III under GB 3838-2002 Environmental Quality Standard for Surface Water(COD 20 mg/m3, NH3-N1.0 mg/m3 and TP 0.2 mg/m3 correspondingly ). The

13Some details of the original plan are unclear. In the approved domestic TEIF/FSR by local EPB/DRC, only current plan is covered. But the information of the original Chinese EIA report is unavailable. Besides, there were no such details in the original CEIA.

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effluent flow rate of WWTP is about 0.23m3/s (=20,000m3/d) under full capacity operation, while the Pihang Drainage Channel of 1.2m3/s during dry season. Changes/updat - A minimum distance of 100m will be es of established as a buffer distance 4 Environmental from Lu’an WWTP to nearest mitigation sensitive receptor. measures Shangdun Group and Shunhe Group and Liushitai Group Pipe network will be Affected village Laojiaying Group of of Laojiaying Village, Sanshipu town adjusted accordingly, 5 by WWTP Guantang Village, location of pump station (resettlement) Sanshipu town has not been changed 99.69 mu of land will be 99.69 mu of land will be acquired The total area of land acquired permanently permanently for the Subproject, acquisition has not for the Subproject, including 98.19 mu (98.5%) of changed. including 97.69 mu cultivated land and 1.5 mu of pond Project impacts 6 (98%) of cultivated (1.5%) Attachment: 7 telegraph (resettlement) land and 2 mu of pond poles, 9 tombs (2%) Attachment: 6 telegraph poles, 6 tombs 33 households with 28 households with 145 persons Affected 168 persons were were affected by the Subproject 7 persons affected by the permanently (resettlement) Subproject permanently Source of resettlement information: Updated Resettlement Plan for Chao Lake Basin Lu’an Eastern New Town District Water Environment Improvement Subproject disclosed on ADB website in Feb 2014

Table III.7 Summary of Minor Changes in Wuwei Subproject (WW1)

Category of No. Original plan Current plan Description update Adjustment of Proposed site Proposed site is located at the intersection The reason to change the the site of the is located in between Huanchengbei Road and Jingsi site: change of Wuwei WWTP the north of Road as in Wuwei County’s master plan. (to County’s master the Chenjia village about 1.5km west from the plan(approved by local 1 intersection original location in Zhanglao village) planning authority on 12 between May 2014) and difficulties in Huanchengbe resettlement i Road and Fudong Road 2 Cancellation of Use one PS Cancelled The existing sewerage PS the PS under located at 320m south of construction the intersection of located at Changjiang Road and 320m south of Dongmengwai Avenue will the be used instead. intersection of Changjiang Road and Dongmengwa i Avenue Changes/updat Newly added: Chenwan Village( Longwan es of Village) 3 Environmental protection objectives

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Changes/updat Effluent to the Effluent directly into Xi River. The discharge point has es of Project tributary of Xi been changed. environmental River, Although the effluent of the Wuwei WWTP impacts theninto Xi under subproject WW1 will not significantly River as the deteriorate the Xi River as the receiving final receiving water body, the effluent discharge point water body (East longitude 117°57'57.88 ", north latitude 31°21' 15.76" )is located about 2km upstream existing water intake of the Water Supply Plant’s of Cangtou Community in Wucheng Town. Based on the evaluation report on Wuwei WWTP Effluent Discharge Point into Xi River prepared by Anhui 4 Provincial Hydrological Bureau and Wuhu Municipal Water Fuction Zoning, the main water bodies nearby the subproject were re-classified and demarcated. The section of effluent discharge point was confirmed as Grade III under GB 3838-2002 Environmental Quality Standard for Surface Water. Before the WWTP construction is completed, the water intake will be moved downstream by 1.5km, as promised by Wuwei County Government, to ensure drinking water safety and irrigation. Based on the prediction in the domestic TEIF, the water quality of Xi River will both comply at 2km and 5km downstream. Changes of Disinfection: Disinfection: ClO2 Environmental UV 5 mitigation measures Affected village - This project will affect Yuanyou and - by WWTP Chenwan natural villages of Shibei 6 (resettlement) administrative village, FuduTown, Wuwei County in Wuhu City. The project will occupy Project impacts - 68.4 Mu lands permanently, which are - (resettlement) allcollectively-owned land. The temporary 7 land occupation for construction is 60.5Mu (roads are basicallybuilt along the pipe Affected - network, so that the construction does not - persons need land acquisition or demolition). (resettlement) Theland acquisition will affect 27 8 households, 102 people; no house acquisition influence, and thisresettlement plan is an update version. Note: 1.Some details of the original plan are unclear. In the approved domestic TEIF/FSR by local EPB/DRC, only current plan is covered. But the information of the original Chinese EIA report is unavailable. Besides, there were no such details in the original CEIA. 2. Source of resettlement information: Updated Resettlement Plan for the Wuwei County WuchengWaterEnvironment Integrated Improvement Subproject: Wuwei Section of Xihe River, disclosed on ADB website in July 2015

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C. Non-Point Pollution Control

37. General.This output includes five categories of intervention; (i) dredging of nutrient rich sediments from the beds of rivers flowing into Chao Lake; (ii) stabilization of eroding embankments on selected sections of rivers flowing into Chao Lake; (iii) implementation of a solid waste collection and transfer project in Feidong County to control a troublesome source of floatables in that area; (iv) construction of engineered wetlands in Chao Lake itself; (v) construction of an engineered wetland on the banks of one of the lake’s tributaries; and, (vi) supported for a pilot NPS pollution control activity focusing on the control of agricultural pollution sources.

38. The river rehabilitation component involves 25 rivers with river dredging to remove sediment laden with nutrients, and embankment construction to reduce soil erosion and to improve drainage for flood control. Component contents are summarized in Table III.8and the locations are shown in Attachment IIIof the original CEIA.

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Table III.8 Summary of the River Rehabilitation Component ) 3 banks] (km) (km) banks] o. Sub-project Names of Rivers Sediment (m Sediment Disposal Sites No. of Dredged Sediment Sediment No. of Dredged Quantity of Dredged River River Dredged of Quantity iver Dredging Length (km) (km) Length Dredging iver Embankment Length [both [both Length Embankment Hefei City Binhu New District R 23,268+11, H1 Beilaowei Environment Improvement  Beilaowei Channel 6.050 12.1 560=34,82 1 –after change 8 –before change  Beilaowei Channel 3.878 7.756 23,268 1  Yaobuwei East Bank  YaobuweiShizhi Feidong County Chao Lake Basin Channel H2 (Changlin River Region) Water 13.900 9.000 184,703 1  Shibalianwei East Environment Integrated Improvement Bank  Qinglongqiao River Feidong County Chao Lake Basin  Zhennan River H3 (Cuo Town Region) Water  XuguangShiba 6.025 2.560 64,620 4 Environment Integrated Improvement Stream Feixi County Integrated Improvement H4  Fengle River 4.579 9.158 52,600 1 for Rivers Flowing into Chao Lake  Xu River Channel Banqiao River Upstream Area Water H5 upstream of Banqiao 3.000 5.888 51,300 1 Environment Integrated Improvement River Hefei City Chao Lake Bank Water  Tangxi River mouth (see H6 Environment Improvement and 1.800 --- 286,700  Shiwuli River mouth note) Ecological Rehabilitation Chaohu City Urban District Water  Yuxi River H7 10.312 13.202 665,800 1 Environment Integrated Improvement  Tian River Chaohu City Water Environment  Zhegao River H8 Integrated Improvement of Zhegao  Xiage River 36.860 11.100 892,500 16 River and Tongyang River  Tongyang River  Xian River  Dongdai River  Dongdai River Right Tributary Lujiang County Water Environment  Dongdai River Left H10 Integrated Improvement of Xian River Tributary 13.590 27.180 197,200 2 and Its Tributaries  Zhongtang River  Zhongtang River Right Tributary  Sujia River  Xipiehonggou Hanshan County Qingxi River Water HS1  Qingxi River 2.000 38.400 8,900 1 Environment Integrated Improvement Total: –after change 25 98.116 128.588 2,439,151 28

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Note: 1. The dredged materials from H6 will all be used for wetland construction along the shorelines of Chao Lake under the same sub-project. 2. Updated on the basis of the updated domestic TEIFs and FSRs for subproject H1, L1 and WW1.

39. Dredging. Dredging of about 2.4 million m3 of sediments from 25 rivers over a combined length of about 98 km will reduce re-suspension of nutrient rich bottom sediments (an important source of periodic sediment and nutrient emissions into the lake) and increase the flow capacity of the rivers, thus improving water quality and reducing flooding frequency. Dredged materials will be used as backfill for the embankments, to fill in low spots, for artificial wetland construction, or as covering material at sanitary landfills.

40. Dredging will be done either manually in a dry condition or by mechanical or hydraulic machines in a dry or wet condition. The choice on dredging method is dependent on factors such as river width, water depth, the amount (depth) of sediment that needs to be removed, etc. The following methods will be used in dredging operations in this project. Each sub-project will likely deploy a combination of these methods.

41. Dry dredging involves constructing upstream and downstream barriers (e.g. a cofferdam or an earth bund) along a section of the river to be dredged. The length of this section may vary from 500m to 800m. Water inside the barriers will be pumped out. Sediment will be removed by three methods. The first is to use manual labor to remove the sediment. The second is by mechanical dredging which is an excavation operation similar to conventional earth moving. Removed sediment will be loaded onto trucks with containers that could be closed and sealed during transport to the disposal site. The third method is to spray the sediment with high pressure water, creating a slurry that will be suction pumped directly to the disposal site provided that the site is nearby (e.g. within 500m).

42. Wet dredging is done under water using mechanical or hydraulic equipment. For rivers that are narrow and with shallow depth where a dredger cannot be deployed, mechanical dredging using a long-arm grab positioned on the river bank will be used. For rivers with adequate depths for dredger, mechanical or hydraulic equipment could be deployed. Mechanical equipment generally consists of a grabbing device that could be lowered into the water for sediment grabbing either directly from the dredger or loaded onto a pontoon depending on water depth. Hydraulic dredging involves the deployment of a cutter suction dredger, which loosens the sediment with the cutter edge then sucks the loosened sediment into the storage tanks on the dredger. Similarly, the dredged sediment will be transported to the disposal sites in sealed containers or suction pumped directly from the dredger or pontoon if they could be maneuvered close to the disposal site.

43. Twenty eight disposal sites have been identified for the disposal of approximately 2.15 million m3 of dredged river sediment (approximately 0.29 million m3 in sub-project H6 will be used for constructing shoreline wetland). These are abandoned pits in close proximity to the rivers to be dredged. These pits are abandoned dry ponds or abandoned excavated (for materials used in other construction projects) areas. These disposal sites will be embanked on four sides and the bottom lined with 1.0 mm HDPE geo-membrane with 0.5m clay on top to prevent seepage of the interstitial water from the dredged sediment into the surrounding soil and ground water. Upon settling of the sediment, the top water layer will be discharged back into the nearby river, provided that the SS levels meet the discharge standard. To facilitate sediment settling, flocculants such as catonicpolyacryl amide (PAM) could be used, at a dosage ranging from 1 - 6 mg/l.

44. Upon completion of dredging and the closure of these disposal sites, vegetation will be

27/81 planted at these sites to prevent soil erosion and for scenic landscaping. For planting on these sites, the soil condition must meet PRC GB 4282-84: Control Standards for Pollutants in Sludge from Agricultural Use. These standards, although primarily established for wastewater sludge, are also applicable to dredged materials from waterways, lakes and reservoirs. These standards are shown in Table III.9.

Table III.9: Pollutant Control Standards for Sludge for Agricultural Use (PRC GB 4282-84) Maximum Allowable Concentration (in mg/kg dry weight) Item Acidic soil Neutral and Alkaline Soil (pH < 6.5) (pH ≥ 6.5) Cd and its compound (as Cd) 5 20 Hg and its compound (as Hg) 5 15 Pb and its compound (as Pb) 300 1000 Cr and its compound (as Cr) 600 1000 As and its compound (as As) 75 75 B and its compound (as soluble B) 150 150 Mineral Oil 3000 3000 Benzo(a)pyrene 3 3 Cu and its compound (as Cu) 250 500 Zn and its compound (as Zn) 500 1000 Ni and its compound (as Ni) 100 200

45. Embankment. Approximately 128 km of embankment will be constructed (both banks). Embankments help confine water to the river course and protect adjoining land from flooding. They also protect the riverbanks from erosion. Embankments are basically either rectangular or trapezoidal in shape. The former requires less land area and is predominant where houses have already been built alongside the river. The latter provides a wider flood channel for river flow, and could have environmental and ecological benefits besides flood control if appropriate slope grading and embankment materials are selected. Both shapes are used in the sub-projects with predominantly trapezoidal shape except on river sections passing through populated areas, where land constraint dictates the use of rectangular shape.

46. Revetments are embankment structures that protect the earthen river bank from scour and erosion. There are two types of revetment: (i) gravity type revetment, i.e. masonry stone retaining wall, and (ii) composite revetment comprising of masonry stone retaining wall for the lower part and ecological protection slope for the upper part. Most sub-projects use the composite revetment type except in river sections through populated areas where land constraint dictates using vertical masonry stone retaining wall.

47. On composite revetment’s ecological protection slope, different materials (mostly a combination of different materials) will be used in different sub-projects taking into account protection strength, anti-erosion and anti-scour performance, vegetation coverage, landscaping and ecological effect, and construction cost. These materials include vegetation slope protection, three-dimensional geomat slope protection, gabion revetment, eco-bag revetment and vegetated concrete revetment. Vegetation slope, three-dimensional geomat slope and eco-bag revetment have comparatively better ecological effect than gabion revetment and vegetated concrete revetment.

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48. Wetlands.Wetland is defined as “any land which is intermittently or periodically waterlogged by surface or ground water at a frequency and duration sufficient to support a prevalence of vegetation typically adapted for life in saturated soil conditions”.14 Wetland protects lakes and water bodies in a number of ways. It provides habitats and breeding and nursery grounds for a variety of wildlife. It stores water providing replenishment to surface and ground water systems. It functions as a natural flood water retention area. Wetland vegetation takes up nutrients from the water and sediment, removing pollutants. According to one FSR for this project, wetlands have the capacity to remove 85-95% of BOD, >95% SS, 50-70% TP and 40-60% TN. Water evaporated from wetland could improve the surrounding micro-climate by increasing nearby humidity and harmonizing the surrounding air temperature.

49. Approximately 337 ha of wetland habitat will be rehabilitated or constructed via 4 sub-projects. Three lake wetlands will be constructed covering a total area of approximately 318 ha and will be located where rivers and channels enter the Chao Lake. The wetland vegetation will remove nutrients as it grows and also provide physical protection fromwind-induced waves that break down the natural banks around the lake. A total of 0.3 million m3 of dredge spoil from two of the river dredging outputs—Tangxi and Shiwuli river mouths— will be used for some of this wetland construction and the remainder of the fill will be dredged from the bottom of the lake, which will also have water quality benefits.15 The riverbank wetland will cover an area of about 19 ha on Xuguangshiba Stream in Cuo town to provide embankment stabilization, protection against erosion, and sediment capture.

50. Component contents are summarized in Table III.10.

14U.S. Environmental Protection Agency.2007.Wetlands and water quality trading.EPA/600/R-06/155. Cincinnati, Ohio. 15 The lake’s bottom sediments contain high concentrations of dissolved and adsorbed nutrients which move into solution whenever concentrations in the water column decline; this creates substantial chemical inertia in the lake which masks the benefits of reduced pollutant emissions.

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Table III.10: Summary of the Wetland Rehabilitation Component

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Wetland No Sub-project Location Area (ha) Type and Major Plant Species . Purpose Hefei City Flood plain Binhu New wetland District rehabilitatio Beilaowei Chao Lake n for Reeds, wild rice glass, cattail, Environment shoreline at flood/rain 30+(1.28+2.12)/15=30.2 water onion, Lythrum, water H1 Improvement the Beilaowei water 3 arum, Canna, IrisCalamus, Channel holding and water lily mouth WWTP effluent river - after water change purification Flood plain wetland Chao Lake rehabilitatio Reeds, wild rice glass, cattail, shoreline at –before n for flood water onion, Lythrum, water the Beilaowei 30 change water arum, Canna, IrisCalamus, Channel holding and water lily mouth river water purification River bank Feidong wetland County Chao construction Lake Basin Canna,Calamus, Iris, water for soil (Cuo Town Xuguangshib onion, reeds, Thalia, Hydrilla, stabilization H3 Region) a Stream in 18.98 Potamogentonmalaianus, water and uptake Water Cuo Town lily, water snowflake, water of nutrients Environment chestnut from Integrated non-point Improvement runoff Submerged plants: Bog Hefei City pondweed, Chao Lake Chao Lake Ecological Myriophyllumverticillatum, eel Bank Water shoreline wetland grass. Environment between construction Emerged plants: reed, reed H6 Improvement Tangxi River 256 for creation mace, wild rice, softstem and mouth and of wetland bulrush,AcorusgramineusSolan Ecological Shiwuli River habitats for d, water arum, Lythrumsalicaria. Rehabilitatio mouth wildlife Floating-leaved plants: water n lily, water snowflake Surface flow and ecological wetland Reed, wild rice, reed mace, Chao Lake Chao Lake rehabilitatio cress, lotus flower, Huatang shoreline at n and Sagittariatrifolia, Chinese H9 River outflow 32.22 the Huatang construction willow, weeping willow, white Ecological River mouth for river mulberry, camphorwood, Wetland water acacia, ginko, cherry bay purification and nutrient removal Total- after change 337.43

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Note: Updated on the basis of the updated domestic TEIFs and FSRs for subprojectH1(2014), L1(2013) and WW1(2014).

51. Sub-project H1 will rehabilitate wetland at the Beilaowei channel mouth entering Chao Lake, which will function as a flood/rain water holding area and for river/WWTP effluent water purification. Vegetation includes emergent plants and wetland plants, utilizing natural terrain features resulting in parts of the wetland only seasonally flooded. The bottom will be lined with gravel to facilitate the formation of biological membrane for filtration and absorption of nutrients in subsurface flow. The rehabilitated and re-constructed wetland areas also functions as aesthetic areas and wildlife habitats, promoting biodiversity. Only native vegetation with local provenance will be used for the constructed wetlands and re-vegetated areas after construction.

52. Proposed Changes in Hefei City Binghu New District Beilaowei Environment Improvement Subproject. The FSR of HeifeiCityBinhu New District Beilaowei Environment Improvement Subproject was approved by Hebei DRC on 2 September 2011 (approval document No.378, 2011). The environmental impact assessment report (EIA) for this subproject was approved by Hebei EPB in February of 2012. As the Project progresses, adjustments for the subproject have been made in the preliminary design based on the actual conditions. It involves the river rehabilitation and wetland eco-restoration subcomponents. Compared with the FSR, the following adjustments have been made in the preliminary design.  River rehabilitation subcomponent. In the FSR, the river rehabilitation length is 3.9km, starting from Yunnan road in the west and ending at Chao Lake in the east, which doesn’t cover the section from Yunnan Road to Shanghai-Chengdu Expressway. In order to facilitate the flood protection and drainage in the new district, it is proposed in the preliminary design to extend the river rehabilitation length by 2.1km to cover this section. So the total length will be 6.0km.  Wetland eco-restoration subcomponent. The original proposal in the FSR is construction of 30 hectares of eco-wetland at the north entrance of Beilaowei ditch to Chao Lake. Based on lakeside land use and development, it is proposed in the preliminary design to construct the wetland at a lowerlying-land, i.e. the river channel center will be moved southward for 200~400m, and the new location will be within the range of a fishing ground. And the area of the wetland will remain the same. To further enhance the functions of ecological wetland, two additional much smaller centralized wetland treatment units will be developed at the water source inlet upstream for rainwater (0.14ha) and at the downstream of the WWTP (0.07ha). So in total three centralized wetlands will be developed. Compared to the FSR at appraisal stage, it is proposed in the preliminary design, based on actual needs, that a flood gate (inlet from Beilaowei ditch to the estuary) and a flood drainage pumping station (southwest of the intersection between Chaohu River and Huanhu North Road) will be installed.However,an updated TEIF was prepared to address the environmental impacts from the minor change.

Table III.11 Summary of Minor Changes in Hefei City Binhu New District Beilaowei Environment Improvement Project (Subproject H1)

Category of No. Original plan Current plan Description update

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1 River The river (i) Extend the watercourse along The reason to change: rehabilitation rehabilitation length is Yunnan Road to west to In order to facilitate the 3.9km, starting from Shanghai-ChengduExpressway, the flood protection and Yunnan road in the length will be increased by 2.1km and drainage in the new west and ending at the total length will be about6.0km district, it is proposed in Chao Lake in the east (ii)A flood gate (inlet from Beilaowei the preliminary design ditch to the estuary) and a flood to extend the river drainage pumping station (southwest of rehabilitation length by the intersection between Chaohu River 2.1km. and Huanhu North Road) will be installed 2 Wetland Construction of 30 Move the wetland to the low point of the The reason to change: eco-restoration hectares of lot and river centerline to southranging Based on lakeside land eco-wetland at the from 200 to 400m, the site is in the use and development, north entrance of range of current fish pond and the it is proposed in the Beilaowei ditch to areakeeps the same. preliminary design to Chao Lake Two additional much smaller construct the wetland centralized wetland treatment units will at a lower lying-land be developed at the water source inlet upstream for rainwater (0.14ha) and at the downstream of the WWTP (0.07ha). Additional: No resident on both sides of dredging Changes of (several temporarily guarding houses environmental 3 of 2814 fishing ground on both sides of protection dredging. One additional objectives villages-Hudaying -had been resettled through another domestic project)

Additional: (i) 11,560m3 of dredging materials and 34,650m3 of sludge wastewater will be additionally generated (ii) Overflow dam impact on flood Changes of discharge. Under this subproject, two project overflow dams will be constructed 4 environmental upstream of Yunnan Road (K0+640 and impacts K1+660) (iii) Impacts from drainage pumping station and flood gate (iv) Two additional much smaller centralized wetland treatment units will enhance river rehabilitation.

Additional: Relevant laws and regulations issued in the recent two years include: Changes of Management Measures for Dust environmental Pollution Control in Hefei (effective from 5 mitigation February 1, 2014), Anhui Province’s Air measures Pollution Control Action Plan(Anhui Provincial Government, December 2013). Additional measures have been incorporated in the domestic TEIF. The main resettlement impacts of the Affected villages 6 - Subproject are permanent and - (resettlement) temporaryland occupation. In the Subproject, the Beilaowei (Chaohu River) River Managementand Wetland Project Subproject will occupy 1010.1 mu of 7 resettlement - - rural collective land, all beingcultivated impacts land, affecting 497 households with Affected 2371 persons in 8 - - persons ShugangVillage,Nanhe Village, Bingzi

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(resettlement) Village, WeiwangVillage and Miaowei Village. The sludgedredged from river management would be used in wetland construction, leading to notemporary silt dump area. 6 types of infrastructure and ground attachments will beaffected by the Subproject. Source of resettlement information: Updated Resettlement Plan for the Hefei City Binhu New District Beilaowei Environment Improvement Project, disclosed on ADB website in July 2015

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D. Climate Change Adaptation Considerations

53. The Chao Lake Basin could experience more frequent extreme weather events, specially flooding in the middle and lower reaches of the Yangtze River Basin. This project provides climate change adaptation to flooding. Embankments constructed in the river rehabilitation component will increase the flood control functions of the rivers in the sub-project areas. Wetlands constructed in this project will have flood water retention functions. These will make the sub-project areas more adaptable to more frequent and intense flooding events due to climate change.

IV. UPDATED DESCRIPTION OF THE ENVIRONMENT

A. General

54. The description of the pre-project environment (biophysical and socio-economic) establishes (i) the environmental setting within which the project will be implemented, and therefore needs to be designed to suit, and (ii) the environmental values which will be changed (either negatively or positively) by the project.Both these roles are encompassed by the concept of the “baseline” environment.

55. The baseline environmental surveys undertaken for sub-projects were determined by the kinds of components proposed and the environmental parameters which were relevant to their impact assessment.The final CEIA was disclosed on the ADB website in May 2012. In this DDR, all information after May 2012 has been updated.

B. Physical Setting

56. Geography. Chao Lake Basin is characterized by hilly area, low-relief terrain and low-lying plain. The land elevation ranges from 1,539m in the upstream mountains to 7-10m in the downstream alluvial plain. The types of soil include paddy soil, drab soil, purple soil, brunisonic soil, yellow soil, and calcareous soil.

57. This project involves four locations in the Chao Lake Basin: Hefei Municipality, Lu’an Municipality, Hanshan County and Wuwei County.Hefei is located in theJianghuai hilly area, higher in the southwest, southeast and north and lower in the mid-south. Soils in Hefei are primarily yellow brown earth and paddy soil, as well as calcareous soil, purple soil and black soil.Landform in Lu’an consists of complex wind-erosion hilly area and alluvial plain, sloping from southeast to northwest with elevation ranging from 104.3m to 35.0m. Soils include river bend sandy soil, silty clay, clay grit, red sandstone and lime stone.Elevation in Hanshan ranges from 8m to 60m, sloping from the east to the west. The soil is structured with clay blanket and grit stratum.Wuweishows higher elevation in the middle and west, sloping to the east and south. The elevation varies from 9.5m to 14m. The soils of this area are composedof silty clay, silt loam and fine silty sand with silty clay.

58. Climate. Chao Lake Basin is located in the northern subtropical humid monsoon climate zone, characterized by distinct seasons and mild climate, with annual average temperature of 16 oC, relative humidity of 76% and annual average wind speed of 2.8 m/s.Extreme temperatures could reach as high as 41.3 oC and as low as -15.7 oC. The area enjoys a comparatively long icing-free period that is conducive to this project’s construction stage, ranging from approximately 220 to 235 days from the end of March till the beginning of November.

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59. Annual precipitation has averaged 1215 mm for years. Precipitation in the wet season from May to August accounts for 51% of the annual precipitation. The highest precipitation in the Chao Lake Basin was 1986 mm in 1991; the lowest was 672 mm in 1978.Average annual runoff has been about 5.92 billion m3, with 51% of the runoff occurring in the wet season.

60. Air Quality.The PRC ranks air quality into 3 classes according to air quality standards stated in GB 3095-199616: Ambient Air Quality Standard, with Class I being having the best air quality and Class III the worst air quality.According to the 2014Environmental Status Report published by the Anhui Provincial Government17, air quality in the project area in 2014only Wuhu Municipality was ranked Class II except Hefei, Ma’anshanandLu’anMunicipalities, which had a Class III ranking.The overall annual average concentrations of SO2and PM10 in the province compared with 2013 decreased by 10.3%and 4.0% respectively. Although annual average concentration ofNO2 was being worse, it still fell within the Class I standard limit.

61. Baseline monitoring of ambient air quality at the sub-project sites or at sensitive receptors in the vicinity of the sub-project sites was carried out by the LDIs who conducted the domestic EIRs and updated TEIFs for the three subprojects proposed to change (only partial data updated). Typically, ambient air quality baseline monitoring consists of measuring the daily average concentration levels of total suspended particulates (TSP), PM10 (also known as respirable suspended particulates, RSP), sulphur dioxide (SO2) and nitrogen dioxide (NO2) on seven consecutive days. The ambient air quality in all sub-project areas has been assigned the ranking of Class II in accordance with GB 3095-2012, meaning that the baseline data should meet Class II standards.

62. Since odor from river dredging and disposal as well as future wastewater treatment plant and pumping station operations is a potential environmental issue, one-time measurement of ammonia (NH3) and hydrogen sulfide (H2S) was also conducted on each day. The compliance standards for these chemicals are provided in TJ 36-79: Highest Allowable Concentration of Atmospheric Toxic Substance in Residential Areas.

63. Ambient air quality baseline data are summarized in Table IV.1.For each parameter, the highest concentration level measured in the seven days for each sub-project is presented. GB 3095-2012 Class II and TJ 36-79 standards are included in the table for compliance checking. Data in Table IV.1 show that the concentrations of ambient air quality parameters measured on the days of baseline monitoring at 10 locations in the sub-project areas all met GB 3095-2012 Class II and TJ 36-79 standards, with sub-projects H8 and H9 approaching PM10 and TSP limit values.

16GB 3095-2012 only apply in Hefei, Wuhu, and Ma’anhan Municipalities. 17Anhui Province 2014 Environmental Status Report, Anhui Provincial Environmental Protection Bureau. 2015..

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Table IV.1:Ambient Air Quality Baseline Monitoring Results in 2011/2012/2014

Highest Measured Concentrations of Ambient Air Quality Sub-project 3 Monitoring Locations Parameters in mg/m No. PM10 TSP SO2 NO2 NH3 H2S 2 locations at the upstream and

H1 downstream boundaries of river 0.124 --- 0.033 0.049 ------dredging site

3 locations at the pumping a L1 station site and WWTP sensitive --- 0.122 0.009 0.008 ------receptors

5 locations at WWTP sensitive WW1 0.084b 0.117 b 0.028 0.017 <0.007 <0.001 receptors Ambient Air Quality Standard (GB 3095-1996): 0.15 0.30 0.15 0.12 Class II daily average Highest Allowable Concentration of Atmospheric Toxic substance in Residential 0.20 0.01 Areas (TJ 36-79) Notes:“---“ means no measurement was taken; ND means not detected. a:Updated in August 2012; b: monitoring data in May of 2014.

64. Noise. According to the Anhui Province 2014 Environmental Status Report, the daytime LAeq for all 2244 monitoring points in the province in 2014 averaged 53.7 dB(A), with slight improvement on noise pollution in comparison with the level of 54.1 dB(A) in 2010.

65. Noise standards in the PRC are prescribed in GB 3096-2008: Environmental Quality Standard for Noise. GB 3096-2008 grades 5 functional regions based on their tolerance to noise pollution: from Grade 0 to Grade 4.Grade 0 is for regions with health recovery facilities that are the least tolerant to noisy environment and therefore has the most stringent day and night time noise standards. Grade 1 is for regions predominated by residential areas, hospitals and clinics, educational institutions and research centers. Grade 2 is for regions with mixed residential and commercial functions. Grade 3 is for regions with industrial production and storage and logistics functions. Grade 4 is for regions adjacent to traffic noise sources such as major roads and highways, and is sub-divided into 4a and 4b with the former applicable to road and marine traffic noise and the latter applicable to rail noise.

66. The sub-project sites consist of Grades 1, 2 and 4a functional regions, but predominated by the Grade 2 functional region. Baseline noise monitoring was carried out by the LDIs conducting the EIRs and updated TEIFs for the three subprojects proposed to change (only partial data updated), typically on two consecutive days with noise measurements during the day time and the night time on each day. Table IV.2 summarizes the baseline noise monitoring results, showing the highest noise levels measured during day time and night time at each monitoring location, as well as respective functional groups for the sub-projects and the noise limits under GB 3096-2008 for compliance checking.

Table IV.2: Baseline Noise Monitoring Results in 2011/2012/2014

Night Time Noise Sub-project Day Time L Sensitive Receptor Aeq L Functional No. [dB(A)] Aeq [dB(A)] Region H1 Wawucheng Village (SW of WWTP) 48.7 43.2 Grade 1

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Night Time Noise Sub-project Day Time L Sensitive Receptor Aeq L Functional No. [dB(A)] Aeq [dB(A)] Region WWTP site 49.5 43.5 Intersection of Guizhou Road &Zunyi Road 48.0 41.6 Intersection of Huizhouda Road & Guiyang Road 49.6 44.0 Fish pond near the sediment disposal site 51.3 44.9 Intersection of Huancheng North Road 48.4 42.5 &Zhujiang Road Intersection of Yunnan Road & Lasa Road 48.4 42.5 Wastewater pumping station site 46.4 43.6 Sanshipu Government Building 58.1 47.5 Laojiacheng Village 55.0 45.4 Guantang Village 56.0 46.4 Xishipu Village 58.6 47.7 Zaoshu Village 56.9 46.6 L1a Houzaoshu Village 54.6 44.0 Grade 2 Hongqi Village 55.1 43.6 Songhe Village 56.4 45.7 Shuntaiju 55.0 44.3 Gelintonghua Sub-division 56.7 46.2 Huangshiliu 53.3 42.5 1# Proposed WWTP location 55.4 46.4 2# Longwan village 56.0 45.6 3# Baichi 52.1 41.7 4# Xiejialaodun 55.1 42.7 5# Luojialaodun 54.7 44.9 6# Sanzhuang 56.2 44.9 7# Shazhuang 52.2 42.6 8# Rangcun 52.8 45.4 9# Changgang 53.7 43.7 WW1b Grade 2 10# Wangfudu 52.1 43.5 11# Dazhuang 54.8 41.2 12# Lunan 55.2 42.3 13# Fangcun 57.3 45.6 14# Fangjialaodun 55.9 44.8 15# Jingqiao 54.5 44.0 16# Yanzhuangqiao 53.8 42.9 17# Fengjiawan 55.6 44.5 18# Chenjiawan 56.2 45.7 55 45 Grade 1 Environmental Quality Standard for Noise (GB 3096-2008) 60 50 Grade 2 70 55 Grade 4a

Note: noise level in exceeded the noise standard for its functional region a:data in August 2012. b: data in Apr.2014.

67. Table IV.2 shows that baseline noise levels on the days when measurements were taken complied with both day time and night time standards for their respective noise functional regions. Table IV.2 also shows the types of sensitive receptors in the sub-project areas, which include residential and commercial premises, village settings, schools, and hospitals, etc. Night time noise levels were approximately 8.3 dB(A) lower than day time noise levels on average, except at some WWTP sites where there were small differences between day time and night time noise levels due to their locations in open field away from human activities. It is noted with sub-projects L1 and WW1 baseline noise approaching daytime and nighttime limit

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68. Surface Water Quality. Surface water in the project area belongs to the Chao Lake hydrological system. Chao Lake is situated in the central part of Anhui Province and to the west of the Yangtze River Basin. It is the fifth largest freshwater lake in the PRC, with an area of 760 km2.The Chao Lake basin covers an area of 13,000 km2.There are 32 river systems flowing into Chao Lake and one river, the Yuxi River, flowing out of Chao Lake into the Yangtze River. Major river systems flowing into Chao Lake include Nanfei River, Shiwuli River, Pai River, and Zhegao River from the north; Fengle River, Hangbu River, Baishitian River from the west; and Zhao River from the south. These 8 rivers contribute more than 70% of the total flow into Chao Lake. Of these 8 rivers, this project provides interventions for environmental improvement to the following 6 either directly or their tributaries: Nanfei River, Shiwuli River, Pai River, Zhegao River, Fengle River and Hangbu River.

69. Chao Lake provides a surface water source totaling 5.36 billion m3.Input from river systems average 3.49 billion m3 annually. The highest input of 8.94 billion m3 occurred in 1991; and the lowest input of 0.79 billion m3 occurred in 1978.

70. According to the Report on the State of the Environment in China in 2014, the main pollutants were TP and COD.

71. Chao Lake and its river systems in the basin provide drinking water sources for the population in the basin. There are drinking water intakes along many of the rivers and 7 drinking water intake locations along the northeastern and southeaster shoreline of Chao Lake. Of the 5 grades of surface water quality defined under GB 3838-2002: Environmental Quality Standard for Surface Water, only Grades I, II and III are deemed suitable for use as drinking water source.Table IV.3 shows the grading of surface water quality at 19 state-controlled surface water quality monitoring points in the Chao Lake Basin in 2014 based on the results of 4 water quality parameters (pH, BOD5, COD, and NH3-N).

Table IV.3: Grading of Surface Water Quality in the Chao Lake Basin at State ControlledMonitoring Points in 2014

Type of Water Worse than Description Grades I-III Grades IV-V Total Body Grade V No. of monitoring points 8 0 3 11 Rivers Percentage 72.7% 0 27.3% 100% Chao Lake & No. of monitoring points 1 7 0 8 Reservoirs Percentage 12.5% 87.5% 0 100% Source:Report on the State of the Environment in China in 2014 (http://jcs.mep.gov.cn/hjzl/zkgb/2014zkgb/201506/t20150605_303011.htm) and weekly monitoring data of key basin disclosed in MEP’s website.

72. Data in Table IV.3 indicate that of the 11 river monitoring points, only no more than 3/4 showed river water quality that was suitable for use as drinking water, and more than 1/4 were ranked worse than Grade V. Of the 8 monitoring points in Chao Lake and reservoirs, the 1monitoring point in the lake/reservoirs showed Grades I-III in surface water quality while the other 7 monitoring points, which were in Chao Lake, all showed Grades IV to V surface water quality, threatening the use of Chao Lake water as a drinking water source.

73. Chao Lake is suffering from eutrophication due to the discharge of nitrogen and phosphorus from domestic waste water and agricultural runoff. Water quality in the eastern half of Chao Lake was apparently better than the western half, with the former being in a mild eutrophic state and the latter in a medium eutrophic state. This condition has resulted in frequent blue-green algal blooms threatening the drinking water intake points in the Lake. Compared with the same period in 2013, algae bloom in Chao Lake aggravated, and its

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74. Baseline surface water quality monitoring at the sub-project sites and vicinity was carried out by the LDIs conducting EIRs and updated TEIFs for the three subprojects proposed to change (only partial data updated), for this project. Typically, baseline surface water quality monitoring was conducted on two consecutive days with measurements on each day. Table IV.4 presents the monitoring results showing the worse data from the two-day monitoring, the assigned grading using GB for the respective water bodies, and comparison with the surface water quality standards in GB 3838-2002 with their respective grades for compliance checking.

75. Table IV.4 shows that only sub-project WW1 meet their respective assigned Grade III standards, based only on the surface water quality parameters measured in the baseline monitoring. Some rivers and tributaries within some sub-projects also met the standards for their respective grades although these sub-projects as a whole did not meet their assigned standards. Sub-projects L1 only failed on the COD standard for their respective grades.

76. Ground Water Quality. Baseline ground water quality monitoring was carried out by the LDIs conducting the EIRs for this project. Most monitoring locations were at or near the proposed dredged sediment disposal sites, in view of potential seepage of pore water from the dredged river sediment into the ground water aquifers. Other monitoring locations were near proposed WWTP sites or at existing water wells near the sub-project areas.

77. Similar to surface water, ground water in the PRC are categorized into 5 Grades (I to V, I being the best and V best the worst) with ground water quality standards for each grade specified in GB/T 14849-93: Quality Standard for Ground Water. Ground water meeting the standards for Grade III or better is deemed to be suitable for use as drinking water source. Ground water in all the sub-project areas is assigned to meet Grade III standards.

78. Table IV.5 presents the baseline ground water monitoring results and the quality standards for Grade III ground water. Monitoring results indicate fecal coliform and COD to be the major source of ground water pollution in the sub-project areas, with scattered exceedance in Pb, Cr, Ni and NH3-N.

79. Soil and River Sediment Quality. Sub-project components include dredging of river sediment followed by disposal on land at pre-determined sites. The dredged sediment would eventually be used for planting of vegetation. Baseline soil and river sediment quality monitoring was carried out by the LDIs conducting the EIRs to characterize the soil and river sediment conditions for identification of potential environmental issues during dredging and disposal, as well as suitability for planting. Most monitoring locations are at river dredging and sediment disposal sites, with some soil quality monitoring locations at WWTP sites.

80. Soil quality in the PRC is divided into three classes according to GB 15618-1995: Environmental Quality Standard for Soils. Class 1 represents the best and Class 3 the worst. Soil in the sub-project areas has been assigned to meet Class 2 standards, for the protection of agricultural products and human health.

81. The PRC does not have standard for sediments in waterways such as rivers, lakes, reservoirs and the sea. It is common practice in the PRC to use GB 15618-1995: Environmental Quality Standard for Soils to assess sediment quality since most sediment would be disposed on land and mostly likely for future agricultural or planting uses. Some EIRs in the PRC have also used GB 4284-84: Control Standards for Pollutants in Sludges from Agricultural Use for assessing sediment quality. The rationale being that the physical nature of river sediment is similar to sludge. GB 15618-1995 standards are more stringent than GB

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4284-84. Therefore GB 15618-1995 will be used in this project for assessing sediment quality, applying the same Class 2 standards for soil quality in the sub-project area.

82. Table IV.6 presents the baseline soil quality monitoring results. Table IV.7 presents the baseline sediment quality monitoring results based on sediment dry weight. Baseline soil monitoring results complied with Class 2 standards. Baseline sediment monitoring results show low levels of metals and pesticides in the sediment samples collected from the rivers to be dredged.

83. GB 15618-1995 does not have standards for nutrients. Sediment quality monitoring results in Table IV.7 shows high TN and TP levels in sediment. One feasibility study report for this project indicated that approximately 5-10% of the nutrients in river sediment could be released into the water column annually, causing eutrophication in the river system and eventually Chao Lake. This justifies the river dredging component in this project, which will remove nutrient laden sediments from the rivers. Low levels of metals and pesticides in the river sediment that is rich in nutrients also indicate that the dredged sediments should be suitable for agricultural or planting use.

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Table IV.4: Baseline Surface Water Quality Monitoring Results in 2011/2012/2014

Sub-pr Mineral Fecal SS Turbidity BOD5 COD DO TP TN NH3-N Grade oject Monitoring Location pH Oil Coliform No. mg/l NTU mg/l mg/l mg/l mg/l mg/l mg/l mg/l no./l Assign Actual(i) Beilaowei Channel mouth (4 km downstream 7.24 50.2 --- 13.72 13.1 7.78 0.636 0.047 0.997 --- 190000 of WWTP discharge point) Beilaowei Channel 500m upstream of WWTP 7.25 38.1 --- 8.24 16.1 7.76 0.848 0.029 1.56 --- 230000 IV > V discharge point Beilaowei Channel 500m downstream of H1 7.19 44.6 --- 10.51 14.1 7.49 0.721 0.079 1.59 --- 240000 WWTP discharge point In Chao Lake, 100m downstream of 7.57 30.5 --- 3.53 5.85 6.90 0.028 0.198 1.62 --- 625 Beilaowei and Chao Lake confluence III V In Chao Lake, 300m downstream of 7.85 34.2 --- 3.74 6.96 7.25 0.025 0.199 1.64 --- 451 Beilaowei and Chao Lake confluence Sanyuan River at Gaocheng East Road 7.46 ------2.6 24.5 ------0.056 --- 0.241 --- Bridge Pi River Drainage Channel at Luoguan Gate 7.40 ------<2.0 14.5 ------0.050 --- 0.192 --- Qinglongyan 7.26 ------2.7 21 ------0.041 --- 0.161 --- Pihang Drainage Channel 500m upstream of L1a 7.78 ------1.4 10 ------0.063 --- 0.168 --- III IV WWTP discharge point Pihang Drainage Channel 1000m 7.81 ------1.5 10 ------0.065 --- 0.169 --- downstream of WWTP discharge point Pihang Drainage Channel 3000m 7.82 ------1.5 10 ------0.065 --- 0.168 --- downstream of WWTP discharge point Xi River at 500m upstream of the Xi River 7.76 ------2.3 14.5 5.42 0.048 0.050 0.780 0.427 --- Tributary confluence Xi River at 500m downstream of the Xi River 7.71 ------2.7 15.5 5.12 0.040 0.057 0.880 0.495 --- Tributary confluence WW1b III III Xi River at 2000m downstream of the Xi River 7.75 ------2.4 14.5 5.01 0.042 0.051 0.825 0.430 --- Tributary confluence Xi River at 5000m downstream of the Xi River 7.71 ------2.8 15.4 5.46 0.047 0.057 0.825 0.463 --- Tributary confluence Environmental Quality Standard for Grade III 6 - 9 ≤ 4 ≤ 20 ≥ 5 ≤ 0.05 ≤ 0.2 ≤ 1.0 ≤ 1.0 ≤ 10000

Surface Water (GB 3838-2002) Grade IV 6 - 9 ≤ 6 ≤ 30 ≥ 3 ≤ 0.5 ≤ 0.3 ≤ 1.5 ≤ 1.5 ≤ 20000

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Sub-pr Mineral Fecal SS Turbidity BOD5 COD DO TP TN NH3-N Grade oject Monitoring Location pH Oil Coliform No. mg/l NTU mg/l mg/l mg/l mg/l mg/l mg/l mg/l no./l Assign Actual(i) Grade V 6 - 9 ≤ 10 ≤ 40 ≥ 2 ≤ 1 ≤ 0.4 ≤ 2.0 ≤ 2.0 ≤ 40000

Notes: (1) The actual grades given in this table are only based on the parameters measured during baseline surface water quality monitoring (2) The Grades in GB 3838-2002 have more stringent standards for TP in lakes and reservoirs as follows: Grade III: ≤0.05; Grade IV: ≤ 0.1; Grad Data inindicatevalues that exceed the standards for their assigned Grades “---“: indicates no measurement was taken a: data updated in August 2012. b: data of pH, COD BOD , NH -N and TP updated in April 2014. cr, 5 3 e V: ≤ 0.2 (units in mg/l)

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Table IV.5:Baseline Ground Water Quality Monitoring Results in 2011

Sub-pr Permanganate Fecal Hg Pb Cr As Cu Cd Ni COD NH3-N oject Monitoring Location pH Salt Coliform No. mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l no./l Wawucheng Village water well 7.38 0.00020 <0.0002 <0.04 0.0035 ------2.64 0.077 --- <3.0 2814 Fish Farm water well #1 7.30 0.00026 <0.0002 <0.04 0.0033 ------2.59 0.034 --- <3.0 H1 2814 Fish Farm water well #2 7.19 0.00026 <0.0002 <0.04 0.0044 ------2.54 0.048 --- <3.0 Zhenggang Village water well 7.38 0.00019 <0.0002 <0.04 0.0041 ------2.64 0.077 --- <3.0 Wannianpu Village water well 7.38 0.00020 <0.0002 <0.04 0.0035 ------2.64 0.077 --- <3.0 Planned industrial land (from previous 8.40 <0.000026 <0.006 <0.002 0.0005 ------0.6 100 EIA report) Planned residential land(from previous L1 7.77 <0.000026 <0.006 <0.002 0.0004 ------0.5 70 EIA report) Planned storage/warehouse land(from 7.89 <0.000026 <0.006 <0.002 0.0005 ------0.4 70 previous EIA report) Wangzhuang 7.12 <0.0002 <0.0002 --- <0.001 ------0.985 0.015 ------WW1 Zhanglao Village 7.25 <0.0002 <0.0002 --- <0.001 ------1.05 0.015 ------Zhoujiazhuang 7.21 <0.0002 <0.0002 --- <0.001 ------1.15 0.017 ------Quality Standard for Ground Water Grade III 6.5-8.5 ≤0.001 ≤0.05 ≤0.05 ≤0.05 ≤1.0 ≤0.01 ≤0.05 ≤3.0 ≤0.2 ≤3.0 ≤3.0 (GB/T 14849-93) Note: Data inindicate exceedance of standard; “---“ indicates no measurement was taken; ND = not detect

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Table IV.6: Baseline Soil Quality Monitoring Results in 2011

Sub-project As Hg Pb Cu Zn Cr Cd Ni Monitoring Location pH No. mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg H1 Beilaowei dredged sediment disposal site 6.84 0.268 0.0162 20.2 23.0 61.9 59.1 0.0962 --- WW1 WWTP site 7.22 1.73 <0.004 32 48.5 103 --- <0.006 --- < 6.5 40 0.30 250 50 200 150 0.30 40 Environmental Quality Standard for Soils (GB 15618-1995) Class 2 6.5-7.5 30 0.50 300 100 250 200 0.30 50 ≥0307 25 1.0 350 100 300 250 0.60 60

Note: “---“ represents no measurement was taken

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Table IV.7: Baseline Sediment Quality Monitoring Results in 2011

Sub-project As Hg Pb Cu Zn Cr Cd Ni Lindane DDT TP TN Monitoring Location pH No. mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg Beilaowei Channel at upstream end of the 7.22 0.394 0.0129 20.8 24.2 58.8 74.5 --- 38.4 <0.0004 <0.0004 488 520 dredging works Beilaowei Channel at mid-section of the H1 7.45 0.354 0.0091 24.4 28.6 68.0 ------40.3 <0.0004 <0.0004 552 610 dredging works Beilaowei Channel at downstream end of 7.15 0.250 0.0227 20.0 18.3 98.0 ------24.0 <0.0004 <0.0004 634 4370 the dredging works < 6.5 40 0.30 250 50 200 150 0.30 40 ≤0.5 ≤0.5 ------Environmental Quality Standard for Soils (GB Class 2 6.5-7.5 30 0.50 300 100 250 200 0.30 50 ≤0.5 ≤0.5 ------15618-1995) ≥--07 25 1.0 350 100 300 250 0.60 60 ≤0.5 ≤0.5 ------

Note: Data inindicate exceedance of standard; “---“ indicates no measurement was taken

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C. Biological Resources, Ecology and Biodiversity 84. Ecological baseline monitoring and review of relevant literature by the LDIs conducting the EIRs revealed the absence of rare, protected or threatened species in the sub-project areas. A summary of the biological resources in the sub-project areas based on information provided in the EIRs are presented in Table IV.8 in the original CEIA.

D. Socio-economic Conditions

85. Population. The total population of the Chao Lake Basin in 2010 was 10.6 million.18Among this, 5.72 million lived in urban areas, giving an urbanization rate of 54%.The Chao Lake Basin is the central region for socio-economic development in Anhui Province. The Basin has a relatively high level of agricultural-based economy, with structures combining farming, fisheries and livestock operations. Major industries include machinery, electronics, petrochemical, metallurgy, textile, food processing and building materials. GDP for the Chao Lake Basin in 2010 was approximately 335.9 billion CNY. GDP per capita was approximately 32,000 CNY, slightly higher than the national average. The primary to secondary to tertiary industry ratio was 17.4 : 47.0: 35.6.

E. Physical Cultural Resources

86. Investigations by the LDIs conducting the EIRs did not reveal the presence of other physical cultural resources in the sub-project area.

87. With water quality being at Grade IV, Chao Lake is no longer suitable for use as a drinking water source. There are two major centralized water sources that serve the Chao Lake Basin including the sub-project areas: the Dongpu Reservoir and the Dafangying Reservoir. Other sources that provide drinking water to the sub-project areas include Zhongxing reservoir, Tanchong Reservoir, Guoyuanshan Reservoir, Dongshan Reservoir, Wabu Lake, Xiage River, Yuxi River, Xi River(receiving water body of the WWTP in subproject WW1) and Pi River.

88. Green House Gas Emissions. The APG in 2009 approved the Climate Change Program of Anhui Province and explicitly formulated the overall objective of addressing climate change and GHG emissions. According to the program, Anhui should decrease its energy consumption per 10,000 CNY of GDP in 2010 by 20% based on the 2005 level, and 15% in 2015 based on the 2010 level.By 2010, the proportion of coal among the primary energy source should decrease to 80%, the comprehensive utilization of industrial solid waste energy source should reach approximately 85%, water consumption per 10,000 CNY of industrial added value should decrease by 30% compared to that of 2005.19 In September 2014 the APG issued the Energy Conservation and Pollution Reduction Program of Anhui Province (2014~2015), and targeted the CO2 reduction per unit GDP by 3% in 2014 and more than 3% in 2015.

V. DUE DILIGENCE REVIEW ON ANTICPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Positive Impacts and Environmental Benefits

18Chao Lake Basin Water Pollution Prevention and Control 2011-2015 (revised version) 19Source: http://www.linkschina.com/eN/index.php?option=com_content&view=article&id=486:anhui-province-energy-consu mption-per-10000-yuan-of-gdp-to-drop-by-15-in-2015-based-on-2010-level&catid=5:climate-change&Itemid=8

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89. Table V.1 summarizes the benefits of this project, which include flood control improvement, prevention of soil erosion, interception of wastewater, enhancement of biodiversity through wetland rehabilitation, and solid waste management. This project will benefit a population of 2.14 million in the Chao Lake Basin in terms of better environmental quality and public health conditions.Table V.2 shows the proposed changes in the Project DMF Indicators.

Table V.1: Summary of Project Benefits Component Benefitsafter change Benefitsbefore change River dredging Dredging of 98 km of river sections Dredging of 96 km of river sections would remove over 2.4 million m3 of would remove over 2 million m3 of nutrient laden sediment in the Chao nutrient laden sediment in the Chao Lake Basin. Lake Basin. Embankment construction 128 km of embankment will no longer 124 km of embankment will no longer suffer from soil erosion. Flood control suffer from soil erosion. Flood control will also be improved to 50-year return will also be improved to 50-year return period in most rivers and main period in most rivers and main tributaries, and 10-year or 20-year tributaries, and 10-year or 20-year return periods in small tributaries. return periods in small tributaries. Wastewater collection 580 km of pipelines installed will 584 km of pipelines installed will collect 481,500 m3 of wastewater per collect 484,500 m3 of wastewater per day from a catchment of 21,359 ha for day from a catchment of 22,469 ha for treatment treatment Wastewater treatment 8 WWTP constructed will treat 8 WWTP constructed will treat 166,000 m3 of wastewater per day 166,000 m3 of wastewater per day from a catchment of 14,897 ha. from a catchment of 14,542 ha. Solid waste collection and Eliminate up to 95.27t of garbage from Eliminate up to 95.27t of garbage from transfer being dumped onto river banks per being dumped onto river banks per day, improving sanitary and public day, improving sanitary and public health conditions health conditions Wetland rehabilitation and 337 ha of wetland restored or 337 ha of wetland restored or construction constructed will provide important constructed will provide important habitats for wildlife, improving habitats for wildlife, improving biodiversity; as well as having the biodiversity; as well as having the functions of polishing river water functions of polishing river water quality and shoreline protection. quality and shoreline protection. Total population benefiting from 2.14 million 2.14 million this project

Table V.2: Proposed Changes in the Project DMF Indicators Component DMF Indicators after change DMF Indicators before change Outputs

1. Increased municipal point By 2018: By 2018: source pollution control Expanded wastewater collection Expanded wastewater collection system by 481,500 m3/day system by 484,500 m3/day

2. Enhanced nonpoint source By 2018: By 2018: pollution control 128 km of river banks protected by 124 km of river banks protected by embankment construction embankment construction

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Component DMF Indicators after change DMF Indicators before change Activities with Milestones

1. Increased Municipal Point 1.4 45 km of wastewater collection 1.4 45 km of wastewater collection Source Pollution Control piping, and one 25,000 m3/day WWTP piping, one wastewater pump station, constructed in Wuwei county (by Q4 and one 25,000 m3/day WWTP 2015) constructed in Wuwei county (by Q4 2015)

2. Enhanced Nonpoint 2.1 96 km of river courses dredged 2.1 94 km of river courses dredged Source Pollution Control and 90 km of embankments and 86 km of embankments constructed in Hefei municipality (by constructed in Hefei municipality (by Q2 2015) Q2 2015)

90. One important positive impact and environmental benefit of this project is the removal of pollutants from river sediment through dredging, river water through wetland cleansing, and wastewater through collection and treatment. Table V.3 shows pollutants to be removed from the environment by various components in this project. The amounts of nutrients removed from river sediments were calculated by the PPTA consultant and loan implementation consultant on the basis of the three updated TEIFs in July 2015, using the baseline sediment quality data (see Table IV.7), and river sediment density of 1.3 g/ml average with a moisture content of 60% based on a recent study by AECOM on investigation and remediation of contaminated sediments in the Shenzhen River. The quantities of pollutants removed through wetlands and wastewater treatment were obtained from FSRs and domestic EIRs/updated TEIFs.

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Table V.3: Reduction of Pollutants through this Project River Sub- Wetland Purification Wastewater Treatment Dredging project TN TP TN TP NH -N BOD COD TN TP NH -N BOD COD SS No. 3 5 3 5 (t) (t/y) (t/y) H120 34 11 20 2 ------329 50 274 1,577 2,957 2,081 -After change -Before 22 7 20 2 ------329 50 274 1,577 2,957 2,081 change H2 120 83 ------H3 33 5 ------329 27 329 1,643 3,176 1,971 H4 55 47 ------64 475 3,245 6,231 4,500 H5 <1 <1 ------H6 ------27 6 ------H7 1,017 184 ------18 183 1,387 2,555 1387 H8 313 188 ------100 14 88 624 1,157 799 H9 ------4 28 168 56 ------H10 96 95 ------136 19 --- 816 1,577 1,088 L1-After ------183 33 183 1,241 2,701 1,533 change -Before ------183 33 219 1,533 2,701 1,533 change HS1 2 <1 ------73 13 --- 511 913 767 WW1 ------183 27 182 1,460 2,555 1,643 -After change -Before ------183 27 146 1,460 2,555 1,643 change Total- 1,670 614 47 12 28 168 56 1,333 265 1714 12504 23822 15769 After change

Note: Updated on the basis of the EIA report in July 2015. There are some difference possible due to different design influent water quality. The quantities of pollutants in the PSs will be minor so not accounted for.

91. Table V.3 shows the dredging of over 2 million m3 of river sediment would remove nutrients amounting to 1,670t TN and 614t TP from the river systems in the Chao Lake Basin.Wetland purification of river water and wastewater treatment would reduce nutrient input to Chao Lake by 1,380t TN, 277t TP and 1,742t NH3-N every year.BOD5, COD and SS will also be reduced through wetland purification of river water and wastewater treatment, amounting to almost 12,700t, 24,000t and 15,800t respectively each year.

B. Impacts Associated with Project Location, Planning and Design

92. Land that is to be taken up permanently will be unavailable to existing users and inhabitants in these areas. This is an irreversible impact. Compensation will be in accordance with PRC and ADB requirements. Table V.3 summarizes temporary and permanent land take due to the location, planning and design of this project, based on information provided in the FSRs , domestic EIRs, the updated RPs for this project.

20Updated on the basis of the newly additional length.

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Table V.3: Temporary and Permanent Land to be Taken by this Project Sub-project Temporary Permanent Remarks on Permanent Land Take No. Land Take (ha) Land Take (ha) H1-after For WWTP, PS and river improvement. 56.87 ha cultivated 2.74 69.29 change land, affecting 497 households with 2371persons -before For WWTP, PS and river improvement. No agricultural or 10.47 5.29 change cultivated land, no resettlement For the refuse transfer stations and the vehicle maintenance H2 11.56 0.37 center.No resettlement needed. For river widening. Common agricultural land off river H3 281.43 45.79 banks.Demolition of 890.4 m2 area off the banks of Zhennan River. Earth pit. For dredged sediment disposal. Affect 20 H4 0 9.00 households and 75 persons.No resettlement needed. H7 0 68.67 For river widening.No resettlement needed. H8 125.67 4.27 For WWTP. Industrial land, no resettlement Collective cultivated land for aquaculture.Affects 252 H9 0 32.20 households and 900 persons.Demolition of 400 m2 area. Of which 14.87 ha is collective land affecting 318 H10 0.54 14.87 households and 5151 persons. The rest is government land HS1 0.63 1.71 Land for WWTP already acquired WW1-after 3.18 ha cultivated land affecting 27 households and no 4.03 4.56 change demolition -before 0.3 ha cultivated land affecting 9 households and demolition 8.03 3.50 change of 1760 m2 area Total-after 250.73 426.6 change Note: 1. Based on the information from the DI, temporary land occupation of 10.47ha will be changed to 2.74haas dredging disposal site for subproject H1. 2. According to the updated RPsof subprojects L1 in Feb 2014, H1 and WW1 in July 2015. Among of which: (i) H1 includes the WWTP/PS of 1.95 ha and river rehabilitation/wetland of 67.34ha; and (ii) L1 involves permanent land acquisition of 6.65 ha for the WWTP and 2 PSs, including 6.55 ha (98.5%) of cultivated land and 0.1 mu of pond (1.5%), attachment of 7 telegraph poles and 9 tombs; 28 households with 145 persons affected by the subproject permanently.

93. Project design on the disinfection of treated wastewater would have environmental implications. Process design for all eight WWTPs in this project specifies the use of UV lamps or ClO2 for disinfection. One FSR estimated that for a WWTP with a treatment capacity of 25,000 m3/d using UV disinfection, approximately 50 spent lamps would need to be replaced each year and these 50 spent lamps would need to be disposed of. UV lamp contains mercury and is deemed as a hazardous waste. The IAs are interested in setting up agreements with the UV lamp suppliers for taking back the spent lamps for recycling. This could best be done through a collective effort of all WWTP operators to improve the bargaining power. Otherwise, the spent UV lamps must be rendered non-hazardous prior to final disposal at existing hazardous waste treatment facilities. There are three licensed existing facilities available for treating hazardous wastes from this project. These facilities are located in Jinggang Village (for hazardous wastes from Hefei and Wuwei), Chengnan Township (for hazardous wastes from Lu’an), and Xiage Township (for hazardous wastes from Hanshan).

94. The discharge standard for all WWTPs is Class 1A, the most stringent standard. Therefore, technical design of these WWTPs must achieve the desired treatment to meet Class 1A standard and safety of plant operation.

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95. About 48% influent of Lu’an WWTP will be industrial wastewater from Jinan Economic Development Zone and Lu'an City Industrial Transfer Demonstration Zone. According to the domestic TEIF in 2014, the quantity and pollutant of industrial wastewater are shown in the below Table V.4. Based on the data from Jin'an District Environmental Protection Bureau, the industrial wastewater amount of Jinan Economic Development Zone is 276.7t/d, with COD of 41.5t/a and NH3-N of 2.9t/a after pre-treatment. Because Lu’an Eastern New City Core Area Master Plan (2013 - 2030) is still under preparation, the future industrial wastewater mainly refer to the planning of Lu'an City Industrial Transfer Demonstration Zone. The industry development in Lu'an City Industrial Transfer Demonstration Zone will focus on:  Development of advanced manufacturing industry: automobile parts, iron and steel, mechanical and electrical, agricultural products comprehensive processing, textile and garment, power, and building materials  Actively develop new and high technology industries; and  Accelerate the development of modern service industries such as finance, trade and entertainment.

96. The industrial wastewater of Lu'an City Industrial Transfer Demonstration Zone will be petroleum, coating and electroplating wastewater, mainly withpollutantsof COD, BOD, NH3-N, SS, petroleum and heavy metal. Amongst electroplating wastewater must meet the Electroplating Pollutant Discharge Standard(GB21900-2008)before entering municipal sewage network, and other industrial wastewatermust meet relevantindustry emission standards if applicable, or Grade III standard in the Table 4 of Integrated Wastewater Discharge Standard (GB8978-1996).

Table V.4: Quantity and Pollutant of Existing Industrial Wastewater in Jinan Economic Development Zone and Lu'an City Industrial Transfer Demonstration Zone Quantity of Wastewater (t/d) Main Pollutants No. Name Domestic Industrial

Jinan Economic Development Zone:Many but mainly for manufacturing enterprises, in which mostly are small mechanical processing enterprises. Anhui Kangsheng 1 Pipe Industry Co., 22 28 COD、BOD、NH3-N 、SS、Petroleum Ltd. Anhui Yongtong COD (with high concentrations),BOD、 2 30 3 Automobile Co. Ltd. NH3-N 、SS Anhui Weima Forklift 3 15 2 COD、BOD、NH3-N 、SS、Petroleum Co. Ltd. Meiyemeijia Furniture COD (with high concentrations),BOD、 4 Manufacturing Co., 22 3 NH3-N 、SS Ltd. COD (with high concentrations),BOD、 5 Others 90.5 61.2 NH3-N 、SS

Lu'an City Industrial Transfer Demonstration Zone: There are only 5 companies now as below. Anhui Laiyide COD、BOD、NH3-N 、SS(with low 1 Photoelectric 14t/d 7t/d concentrations) Decoration Co. Ltd. Jecheng Packaging 2 18t/d - COD、BOD、NH3-N 、SS Co. Ltd. An Automobile 3 Exhaust Detection 5t/d - COD、BOD、NH3-N 、SS Line Project Xinhong Machinery 4 Manufacturing Co., 5t/d 2t once COD、BOD、NH3-N 、SS，Petroleum Ltd.

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Xingzhongtian 5 Optical Material Co., 10t/d 3t/d COD、BOD、NH3-N 、SS and LAS。 Ltd. Source: the domestic TEIF of subproject L1.

97. About 25 % influent of Wuwei WWTP will be industrial wastewater from Chengdong Industrial Park. The survey resultsduring the TEIF preparation for Wuweisubproject in August 2014 shows that feather industry had been canceled from Chengdong Industrial Park. The industrial park will be mainly focused on agricultural products processing, logistics, trading, textile industries, anda salt bottle factory ofFengyuan pharmaceutical. All sewerage into the WWTP should meetat least Grade III standard of ‘Integrated Wastewater Discharge Standard-GB 8978-1996’required by WuweiCounty Environmental Protection Bureau. All industrial wastewater should be pretreated prior to be discharged into municipal network,and specific industrial pollutant was not considered in the design indicators of the WWTP.

98. The technical design of the WWTPs and pumping stations must be able to contain the operational noises from pumps, blowers and other noisy equipment with proper acoustic design of these facilities.

99. The technical design of the dredged sediment disposal sites must be able to prevent the seepage or leakage of sediment pore water into the surrounding surface and ground water bodies.The design must provide adequate sedimentation of the dredged sediment so that discharge of the supernatant will meet applicable discharge standards. The design must also provide adequate drainage surrounding the perimeter of the disposal site to prevent overland runoff during heavy rainfall washing the sediment off the disposal site.

100. The design and construction plan of the wastewater collection pipelines must be adequate to prevent pipe burst and to ensure that connections to existing users will not be adversely affected.

101. Sensible construction planning is important to minimize environmental and traffic impacts and to minimizebusy and noisy activities at nighttime, during school examination periods, and during morning and afternoon peak traffic hours.Temporary traffic management will be needed during the construction stage to maintain proper traffic flow.

C. Impacts and Mitigation Measures during the Construction Stage

102. Air Quality.Air quality impacts during the construction stage include dust and odor. Dust (which includes both TSP and PM10 (also known as RSP)) would be emitted during site formation of the WWTPs, pumping stations and refuse transfer stations; excavation and backfilling for wastewater pipeline installation; and earth works during embankment construction. Odor would be emitted during dredging, transportation and disposal of river sediment since the sediment is likely to be anoxic with high organic content thereby generating H2S, a chemical that smells like rotten egg.

103. Mitigation measures will be implemented to suppress dust during the above activities. These include paving frequently used haul roads, frequently watering unpaved areas and haul roads, minimizing on-site storage time of construction and demolition (C&D) wastes, covering stockpiles, using tarpaulin to cover trucks carrying dusty materials, controlling vehicle speeds on construction sites, washing the wheels of vehicles before they leave the site, and timely restoring disturbed land to minimize adverse impacts on humans and crops.To reduce impacts from the asphalt or cement plant, the plant should be equipped with dust removal mechanism and an enclosed mixing chamber, and be located at least 500m downwind from sensitive receptors.

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104. For pipeline construction, HDD (horizontal directional drilling, also commonly known as pipe jacking), is recommended over open-cut.HDD does not need to cut open a trench along the pipeline route, thus avoiding piling up soil along-side creating dust problems and nuisance to pedestrians and traffic.

105. Fugitive odor is difficult to mitigate.The sitting of the dredged sediment disposal locations in this project has taken into consideration potential odor impacts and these disposal locations are distant from sensitive receptors.However, there are households living along river banks on some sections of the rivers to be dredged, especially those sections passing through towns and villages.These households are sensitive receptors to odor emission during river dredging.Dredging, similar to pipeline works, is a linear operation along the river.Once the dredging activity moves beyond 500m from the sensitive receptor, the odor problem if any should no long affect that receptor.Based on construction durations provided in the EIRs, the dredging of 500m of river section should take approximately 1 to 2 months depending on the width of the river and the dredging method used.Potential odor impact therefore should be short term.Directly pumping the sediment slurry through a pipeline to the disposal site should minimize odor emission.However, this could only be adopted if the disposal site is within 500m of the dredging site.Once dredged, the sediment will be transported either on land or river to the disposal site immediately, thereby reducing its exposure time and thus odor emission to river-side sensitive receptors.

106. Noise.Noise is emitted by powered mechanical equipment used for the construction of WWTPs and pumping stations, excavation for pipeline installation, construction of waste transfer stations and river embankments, and dredging operations.Noise impacts during WWTP and refuse transfer station construction are likely to be less than other components because these facilities are sited distant from sensitive receptors.

107. The worst noise impact is likely to occur during pipeline installation because the purpose is to connect wastewater pipelines to households or communities.By nature pipeline construction works generally occur close to sensitive receptors. However, pipeline construction is a linear activity.Once a section is finished, the activity moves away.Therefore a sensitive receptor to pipeline construction noise would only be affected for short duration, generally in terms of weeks.Again, HDD is recommended over open-cut for pipeline construction.

108. Construction noise will be mitigated by using quiet equipment; observing good O&M of machinery; using temporary hoardings or noise barriers to shield off noise sources; and stopping construction between 18.00 and 07.30 hours near residential areas, hotels, and hospitals.If there are schools and worshipping places near construction activities, the contractors must maintain continual communication with these to avoid noisy activities during examination and worship periods.

109. Water Quality.Uncontrolled wastewater and muddy runoff from construction sites could potentially pollute nearby water bodies and clog up drains.Portable toilets and small package WWTPs will be provided for the workers and canteensIf there are nearby public sewers, interim storage tanks and pipelines will be installed to convey wastewater to those sewers.Sedimentation tanks will be installed on-site to treat wastewater and muddy runoff with high concentrations of suspended solids.If necessary, flocculants such as PAM will be used to facilitate sedimentation.

110. Discharge of supernatant water from the dredged sediment disposal sites could also pollute nearby water bodies.The suspended solids in the supernatant water will be allowed to settle, assisted with flocculants such as PAM if needed, and monitored for compliance with discharge standards before discharging into nearby water bodies.

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111. Different dredging methods to be adopted in this project for the removal of river sediment have been described in Section III.Dry methods that involve damming up the section of the river to be dredged, pumping the water out, then removing the river sediment manually, mechanically or hydraulically are likely to cause minimal impact to water quality because of the presence of barriers between the dredging site and the river water.

112. Wet dredging using mechanical grabs or cutter-suction dredgers would stir up the river sediment, bringing the sediment particles into suspension, and releasing the pollutants in the sediment into the water column.Sediment quality baseline data showed low levels of heavy metals and pesticides but high levels of nutrients (TP and TN).Therefore potential downstream impact from release of heavy metals and pesticides from river sediment during dredging should be negligible and water quality impact during river dredging works would be limited to theincrease of suspended solids (SS) levels and nutrients (TP and TN) in the water column.The dispersion of SS and nutrients and their levels would depend on the river flow and the dredging rate.With the release of nutrients into the water column, algal bloom in the rivers is unlikely due to high turbidity.The nutrients are likely to be taken up by floating plants, whose prolific growth could cause temporary nuisance to waterway users.

113. Recommendation has been made in domestic updated TEIFs to conduct wet dredging during the dry season, minimizing the dispersion of suspended solids and nutrients.In the updated Environmental Management Plan (EMP), a monitoring mechanism has also been established to address water quality problems during dredging.Water quality monitoring during dredging would include one location upstream of the dredging site (thus not to be affected by dredging and will serve as a control station), and two locations downstream of the dredging site (serving as impact stations).Comparisons will be made on SS concentrations between the control and impact locations.If the concentration of SS at impact locations are more than 30% of the control station, mitigation measures such as reducing dredging rates or changing the dredging method (such as using a sealed grab instead of open grab) would need to be implemented.

114. Ecology and Biodiversity.This project will remove vegetation and habitats from approximately 427ha of land temporarily and 251haof land permanently.Temporary land take will be used mainly for the disposal of dredged river sediment or construction staging areas.These areas will be re-vegetated and landscaped after completion of construction works.Permanent land take will be used for WWTP and pumping station facilities.In addition, vegetation and habitats dominated by herbaceous vegetation communities in areas designated for embankment construction will be removed, followed by construction of ecological embankments, resulting in improvements of ecological habitats compared to the present conditions.

115. Ecological baseline survey conducted in this project did not reveal the presence of rare, threatened, protected or endangered species in the above areas, nor are these habitats of conservation value.

116. River dredging will affect aquatic and benthic organisms inhabiting these rivers.Due to the polluted state of these rivers, biodiversity was reported to be low.Aquatic organisms include phytoplankton dominated by blue-green algae, green algae and diatoms; zooplankton dominated by protozoa, rotifers, Cladorcera and copepods.Benthic organisms are dominated by polychaetes, oligochaetes, small bivalves, clams, snails and chironomidlarvae.Fish include pollution-tolerant species of carps, minnows, and loaches.These are ubiquitous organisms with no commercial or conservation value and dredging works would not have irreversible impacts on their population dynamics and community structure.Upon completion of dredging works, these communities should be able to recover.Benthic communities will recolonize the riverbed.Impact is therefore temporary.Future communities would benefit from better water and sediment quality.

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117. Table V.5 summarizes the human activities and fishery resources in areas on both sides and downstream of the dredging works, based on information gathered by the Anhui PMO.The information indicates that impact to these activities and resources isminimal.Although there is freshwater fishery downstream especially in Chao Lake, such activities are at some distances from the works areas and should not be impacted by dredging activities.The long term benefit of flood control to the livelihood of residents near the river and sediment nutrient removal to the water quality improvement and fisheries in Chao Lake should outweigh short term disruption, if any, caused by dredging.Mitigation measures and monitoring programs specified in the updated EMP for implementation during dredging would provide mechanisms to minimize impacts to nearby residents and downstream resources.For instance, the upstream control/downstream impact station approach to water quality monitoring during dredging would provide information on the extent of pollutant dispersion downstream from dredging, which would provide useful information and justification warranting changes in the dredging method if needed.

118. Wetland rehabilitation and construction will have positive impacts to biological resources, ecology and biodiversity.Rehabilitated and constructed wetlands will provide resting, feeding, nesting and nursery habitats for wildlife.All wetland rehabilitation activities should use native plant species for local provenance.‘Local provenance’ means that the seedlings and plants to be used for the replanting are collected from vegetation communities around the lake, and then propagated in local nurseries, before being planted in the project sites.

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Table V.5: Description of Areas Adjacent to and Downstream from Dredging Sites Sub- Dredging project Names of Rivers Description of Area on both sides of Dredging Description of Area downstream from Dredging Length (km) No. No resident on both sides of dredging(several temporarily guarding Wetland rehabilitation area of this sub-project, at Belaowei Channel houses21 of 2814 fishing ground22on both sides of dredging. Two confluence with Chao Lake H1 6.05 -after change villages-Hudaying and Wawuying-had been resettled through another domestic project) No resident on both sides of dredging Wetland rehabilitation area of this sub-project, at -before change 3.878 confluence with Chao Lake

Note: 1. Updated on the basis of the updated domestic TEIF and FSR for subproject H1.

21 To be removed and properly compensated prior to construction. 22‘2814 fishing ground’ is a name of a fish ground.

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119. Solid Waste.Solid waste generated during construction will include dredged river sediment, construction and demolition (C&D) waste dominated by excavated spoil from embankment and pipeline works as well as site formation for WWTPs and pumping stations, and refuse generated by construction workers on construction sites.

120. The quantity of dredged river sediment has been estimated to be approximately 2.440million m3 (of which approximately 0.29 million m3 in sub-project H6 will be used for constructing shoreline wetland) for the Project in total.Twenty eight sites have been identified for its disposal.Although monitoring data showed that the river sediments were not contaminated with heavy metals and pesticides, as a precautionary measurethese disposal sites will be designed to contain all dredged sediment, with the bottom lined with HDPE membrane to prevent seepage of pore water and adequate sedimentation for the suspended solids.Based on sediment quality baseline data, these sediments are low in heavy metals and pesticides in compliance with national standards for use as agricultural soil.Upon completion of dredging, these disposal sites will be vegetated and landscaped.The high nutrient contents in these sediments would facilitate plant growth. Garbage dredged up from the river bed will be removed from the dredged sediment for disposal with other construction solid waste at landfills.

121. Attempts will be made to re-use excavated spoil for backfill materials in embankment and pipeline construction.Facilities to be used for storage and/or disposal of excavated spoil and acquisition of backfill materials will be identified in the detailed design stage.The selection criteria will include environmental considerations such as favorable geological conditions, land use, habitats and vegetation on site, impacts on affected people, and distance to the sub-project areas.

Table V.6: Balances of Fill-and-Cut for The Proposed Three Subprojects (‘000 m3)

Sub-project Estimated Estimated Estimated Estimated Notes Volume of Fill Volume of Volume of Volume of Cut Borrow Spoil H1(subtotal ,only 11,560m3 of dredging accounting for materials to the the newly added designated disposal section) site23 with a total area 1,600 2,450 850 of 2.74ha and designed volume of 45,600m3 Spoil to fill old riverbed, low-lying land, or ecological island. Spoil to be reused in L1 (subtotal) 179.3 217.2 37.9 road and landscaping works of eastern new (i)Pipeline 171 204 33 town (ii)WWTP 8 12 4

(iii)PS 0.3 1.2 0.9

WW1(only 33.0 15.8 17.2 IV. V. WWTP, from the DI) Source: the updated domestic TEIFs and FSRs for subproject H1, L1 and WW1. .

23 It is the same site as at appraisal and an abandoned fish pond, located at 600m east of planned Guizhou Road, 200m south of planned Zhujiang Road, and north of Beilongwei gully (Chaohu River). Its land area is the same but the designed volume was only 25,600m3as at appraisal in 2012.

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Table V.7: Predictions of Soil Erosion (t/a) Construction Scope Area Baseline Without mitigation With mitigation (ha) measures measures

Lu’an WWTP (subtotal) 35.7 195.6 1092 333.4

(i) Pipeline 25 125 625 225

(ii) WWTP 5.7 45.6 342 68.4

(i) Temporary Storage 5 25 125 40

Wuwei WWTP (subtotal) 6.4 10,350 1,400

(i)WWTP at construction 5 9,160

(ii) WWTP at vegetation recovery (2 0.7 980

years) (ii) WWTP at 0.7 210 operation(yearly)

Source: the updated domestic TEIFs and FSRs for subprojects H1, L1 and WW1.

122. To minimize adverse impacts from the refuse generated by the workers and C&D waste, refuse will be stored in closed containers and regularly transported off-site for disposal at landfills. C&D wastes will be cleared and removed regularly.

123. Physical Cultural Resources.Should physical cultural resources be discovered during the course of construction, provisions under the PRC’s Cultural Relics Protection Law and Cultural Relics Protection Enforcement Regulations will be followed in reporting, protecting and preserving such resources.

124. Green House Gas Emissions.Green house gas (GHG) emissions during the construction phase will mainly come from construction equipment, vehicles and dredgers.Recommendations have been made to reduce GHG emissions by throttling down or shutting off the construction equipment, vehicles and dredgers when they are not in operation.

125. Special Features in the Proposed Changes in Hefei City Binghu New District Beilaowei Environment Improvement Subproject.In July 2015, the rehabilitated river length is proposed to be increased by 2.1km (Yunnan Road to Shanghai-Chengdu Expressway), with a riverbed width of 10~12m. And 34,650m3 of sludge wastewater will be additionally generated. It is estimated that additional 20 units of construction machinery will be needed. If each machine needs 0.6m3 for washing, the wastewater generation will be 12m3/d. It is estimated additional 60 construction workers will be needed. The domestic water consumption is estimated at 100 liter/person/day and wastewater at 80% of the water consumption. So the domestic wastewater will be 4.8m3/d, mainly coming from the canteen, toilet and shower room. The dredging for the increased river rehabilitation section will be 11,560m3. According to the testing results of the sediment sample from the domestic EIA during the PPTA stage, the sediments were low in heavy metal in compliance with National

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Standard For Use As Agriculture Soil (GB4284-84), and the sediment baseline monitoring results can meet the Class II requirements in Environmental Quality Standard for Soils (GB15618-1995). According to the monitoring results from Hefei Environmental Monitoring Station, the sediment in the disposal site and those from the river do not have significant difference in heavy metal content. In addition, the sediment disposal site will keep the same nearby the dredging area to avoid any inconvenience and secondary pollution due to long distant transfer.

126. Relevant laws and regulations issued in the recent two years include: Management Measures for Dust Pollution Control in Hefei (effective from February 1, 2014), Anhui Province’s Air Pollution Control Action Plan(Anhui Provincial Government, December 2013). Additional measures have been incorporated in the domestic TEIF. The LIEC reviewed those and found mostly consistent with the mitigation measures in the originally approved EMP. The additional measures are reflected in the updated EMP. An example is information disclosure: signboards on site layout, brief introduction of contract information, construction safety, fire protection, civilized construction, environmental protection, names and contact details of key personnel should be erected according to Construction Project Site Management Guidelines (21 Sep 2007, by MOHURD).

127. Special Features in the Proposed Location Change of Lu’an Eastern New District Water Environment Improvement Subproject. As there are many sensitive receptors within 50m radius of the pipeline network, mitigation measures must be taken to prevent dust and noise impacts:  Watering working surface and mound to maintain certain moisture and reduce dust; control speed of vehicles; set loading limit for trucks; enclose; stop construction activities under high wind, and cover up material storage.Especially for the pipeline construction.  During construction, the noise levels during the nighttime at all of sensitive receptors will exceed the standard. Therefore, mitigation measures must be taken to reduce noise impacts, as below: 1) Strengthen construction management, properly schedule construction activities, minimize construction activities during night, strictly comply with construction noise management regulations, prohibit noise intensive construction activities during night; 2) Apply low noise construction equipment and construction method and process when possible; 3) Establish shelter around noise-intensive equipment; 4) Strengthen the management of haulage vehicles, reduce number of trucks and traffic flow at the construction site, and car horns control; 5) Prohibit construction near sensitive receptors during night time and national exams; and 6) Where dense sensitive receptors situate, HDD (horizontal directional drilling, also commonly known as pipe jacking) will be used; otherwise, temporary sound insulation with not less than 15 dB (A) reduction will be used for those open-cut area.

D. Impacts and Mitigation Measures during the Operational Stage

128. Air Quality.Operation of WWTP and PS would emit odor. Potential odor sources in WWTP include the intake screen, oxidation ditch, sludge dewatering pump house and sludge storage tank. Odor dispersion estimation by domestic EIA institutes indicated that the concentrations of odorous chemicals NH3 and H2S emitted during the operation of WWTPs in this project would meet PRC’s GB 14554-93: Emission Standards for Odor Pollutants, Class 2 3 3 standards (1.5 mg/m for NH3,0.06 mg/m for H2Sand 20(dimensionless) for odor) at the boundary of the WWTP.Odor absorbents such as activated carbon or biochemical system will be installed in the PS’s and the sludge dewatering and storage areas of WWTPs for odor removal.In addition, a minimum distance of 50m will be established as a buffer distance from

62/81 the WWTP/PS to the nearest sensitive receptor. However, a minimum distance of 100m will be established as a buffer distance from Lu’anWWTP (subproject L1) to nearest sensitive receptor. Huangshiliu village with 5 households and 20 people, 53m north of the Lu’an WWTP site, fell within the scope and have been relocated under other domestic projects. In addition, a minimum distance of 200m will be established as a buffer distance from Wuwei WWTP (WW1) to nearest sensitive receptor.

129. With the implementation of these mitigation measures, odor from the PSs, WWTPs and refuse transfer stations is unlikely to adversely affect nearby sensitive receptors in the sub-project areas.

130. Noise.Operational noise impact could potentially come from the WWTPs, PS’s and the refuse transfer stations during refuse compaction.Noise levels from equipment in these facilities range from 80-105 dB(A) according to estimates provided in domestic EIRs and updated TEIFs for the proposed change in three sub-projects (H1, L1 and WW1).To mitigate potential noise impacts, recommendations have been made to use low noise equipment, submerged pumps and building walls with adequate thickness and acoustic measures such as barriers or sound absorbing materials if needed.Recommendations have also been made to diligently maintain such equipment to keep them in good working conditions.With the above mitigation measures in place, noise levels from equipment could be reduced to 70-95 dB(A).Noise levels at the boundaries of these facilities were predicted to range from 52-55.8dB(A) during day time and 48.7-49.8 dB(A) at night, which comply with Grade II noise requirements of 60 dB(A) during day time and 50 dB(A) at night under GB 12348-2008: Noise Standards at the Boundary of Industries and Enterprises.

131. Water Quality. Potential water quality impact would result from the discharge of treated effluent from the WWTPs.Treatment level for all WWTPs will be tertiary with disinfection using UV radiation or ClO2 disinfection. The discharge standard prescribed for all WWTPs is Class 1A, which is the most stringent standard for domestic wastewater discharge in the PRC (see Table III.4). Despite such high level treatment, the concentrations of COD, BOD, TP, TN and NH3-N in the treated effluent still exceed the water quality standards for Grade V surface water under GB 3838-2002 Environmental Quality Standard for Surface Water (see Table IV.3 on the surface water quality standards for Grades III to V under GB 3838-2002). The quality of the treated effluent is good enough for re-use as landscape irrigation or street cleaning water, and recommendations have been made to have all WWTPs explore opportunities for effluent reuse.This will reduce the amount of treated effluent discharging into water bodies.

132. For the Lu’an WWTP under subproject L1, the effluent receiving water body, Hangpi Drainage Channel (mainly for agricultural irrigation), will be significantly impacted. The predicted results indicate that the COD, NH3-N and TP will be increased from baseline 10mg/m3, 0.168mg/m3 and 0.065 mg/m3 to 16.47mg/m3, 0.94mg/m3 and 0.13 mg/m3 after full operation, which still can meet the Grade III under GB 3838-2002 Environmental Quality Standard for Surface Water(COD 20 mg/m3, NH3-N1.0 mg/m3 and TP0.2 mg/m3 correspondingly ). The effluent flow rate of WWTP is about 0.23m3/s (=20,000m3/d) under full capacity operation, while the Pihang Drainage Channel of 1.2m3/s during dry season. It is recommended that well operation management and emergency preparedness be paid sufficient attention.

133. Although the effluent of the Wuwei WWTP under subproject WW1 will not significantly deteriorate the Xi River as the receiving water body, the effluent discharge point is located about 2km upstream existing water intakeof the Water SupplyPlant’s of Cangtou Community in Wucheng Town. Based on the evaluation report on Wuwei WWTP Effluent Discharge Point into Xi River prepared by Anhui Provincial Hydrological Bureau and Wuhu Municipal Water Fuction Zoning, the main water bodies nearby the subproject were re-classified and

63/81 demarcated. The section of effluent discharge point was confirmed as Grade III under GB 3838-2002 Environmental Quality Standard for Surface Water. Before the WWTP construction is completed, the water intake will be moved downstream by 1.5km, as promised by Wuwei County Government, to ensure drinking water safety and irrigation. Based on the prediction in the domestic TEIF, the water quality of Xi River will both comply at 2km and 5km downstream.

134. Despite the above potential impact, wastewater treatment has the benefit of removing untreated wastewater from discharging into water bodies.WWTPs to be built in this project will treat 166,000 m3 of wastewater per day.Another 318,500 m3 of wastewater will also be collected per day by pipelines built under this project for conveyance to existing WWTPs for treatment.This project therefore eliminates a total of 481,400 m3 of untreated wastewater from discharging into the Chao Lake Basin each day.The benefits in terms of pollutant reduction through wastewater treatment from this project have been presented in Table V.2.

135. The extent of dredging and embankment works on the rivers would change the hydrodynamics of water flow in these rivers.Yet such changes have been fully investigated in the FSRs, and formed the basis for designing the extent of dredging and embankment works that would be needed to upgrade the rivers’ flood control function for the protection of human lives and livelihood.

136. Solid Waste.General refuse generated at the WWTPs, PS’s and refuse transfer stations will be collected regularly for disposal at landfills.Hazardous waste will be generated from spent UV lamps (containing Hg) from the Lu’anWWTP.The Lu’anWWTP operators will negotiate with the UV lamp suppliers to have the latter take back spent lamps for recycling, thus removing these from the waste stream.

137. Ecology. This project will have positive impact on ecology.Vegetation or eco-bag revetment used for slope protection on embankments would enhance the ecological value of the existing eroded river bank slopes dominated by grasses and weeds.Improvement in river quality from removal of bottom pollutants by dredging and from interception and treatment of wastewater going into these rivers will provide considerably improved environmental conditions for aquatic and benthic flora and fauna in these rivers.

138. The wetland rehabilitation component in this project will improve biodiversity.Though less beneficial to wildlife than natural wetlands,wetlands rehabilitated or constructed will provide important habitats to a wide variety of wildlife for resting, feeding, nesting, breeding and nursery functions. At present, Chao Lake surface (within 500m of shoreline) and lake shoal have low bird biodiversity compared to other lakes at similar latitudes (Chen et al., 2010).Chen et al. (2010) described the benefits of wetlands at the shoreline of Chao Lake to water birds especially the waders for nesting and breeding and recommended increasing the shoreline wetland areas by transforming some shoreline fields into wetlands and by actively restoring wetland vegetation to provide suitable habitats for birds. The updated Environmental Management Plan for this project includes ecological monitoring during the operational stage of these wetlands to document habitat use by wildlife.

139. Physical Cultural Resources.This project should have no impact on physical cultural resources during the operational stage.

140. Green House Gas Emissions.This project generates GHG mainly through the use of electricity.The IAs are keen to use energy efficient equipment for their facilities, such as pumps, blowers, compaction machines, and light fixtures, since these will reduce their operating cost.In view of the long term planning of wastewater infrastructure, which will involve future expansion on the treatment capacities of wastewater treatment plants, the IAs may consider the use of biogas digesters for sludge treatment.Methane gas generated could be

64/81 harvested for use as either electricity or fuel at the WWTPs.This will help reducing GHG emissions.

141. Special Features in theProposed Changes in Hefei City Binghu New District Beilaowei Environment Improvement Subproject.  Overflow dam impact on flood discharge. Under this subproject, two overflow dams will be constructed upstream of Yunnan Road (K0+640 and K1+660), this will have certain impact on the flood discharge. According to the calculations in the preliminary design, the overflow dams will affect the water surface profile, the backwater height is normally higher than 15cm, therefore, this should be considered when determining the height of dams. Under this subproject, the maximum backwater heights at K0+640 and K1+660 are determined at 20cm.  Impacts from drainage pumping station and flood gate. o Wastewater.During the operation of the drainage pumping station and flood gate, 10 staff will be needed for their maintenance work. The water consumption during their operation will be mainly domestic water use by the management and maintenance staff. The major pollutants will be COD, BOD5, SS and NH3-H, and the domestic wastewater will be discharged through the lifting pump station to the Beilaowei WWTP for treatment. The key pollutants’ concentrations of the wastewater can meet the Grade III standard requirements of Integrated Wastewater Discharge Standard (GB8978-1996). The annual generation of the pollutants: COD-0.064t, BOD5-0.038t, SS: 0.031t, NH3-N: 0.008t (minor so not accounted for the total pollutant reduction in the Table V.2). o Noise. Noise pollution at the pumping station mainly comes from the pump, its noise intensity is 80dB (A). The subcomponent will use low-noise pumps and fans. International brand water pumps will be installed underground at separate equipment room with vibration attenuation base. DJ-4 rubber vibration isolator will be installed between the ground and base. Through-wall pipes will hang in air without contract with wall. Anti-vibration throat will be installed on water pump, and spring shackle will be installed for the pipes. Its operation will be intermittent. Through the above measures, Grade I requirements of Emission Standard for Industrial Enterprise Noise at Boundary (GB12348-2008) can be met at 1m from the boundary. There are no noise sensitive receptors within 100m radius outside the pumping station. Therefore, the pumping station’s impact on the acoustic environment will be minor. o Solid Waste. The pump intakewill be located in open water of wetland. Most silt will sediment in the wetland. And the pumping station will operatewateronly during rainy season. Therefore, silt will be minor. The water pool will be regularly desiltand silt will be sent to landfill, or reused forplantation.There will be 10 staffs responsible for the maintenance of the pumping station during its operation. Each person will generate 0.5kg of solid waste per day. So the waste generation during the operation of pumping station is 1.825t/a, which will be transferred to a sanitary landfill for disposal. Therefore, solid waste will not have any significant environmental impact.

142. Special Features in theProposed Location Change of Lu’an Eastern New District Water Environment Improvement Subproject.  There are no sensitive receptors in the east and south side of the WWTP. The west side is a kiln factory, however, there are 20 residents from Huangshiliu Village Group living at the distance of 53m from the north side. The predictions indicate that the village group falls within buffer distance of the treatment facilities (i.e. sludge thickening tank, aeration tank and grit chamber). According to relevant requirements,

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five households of this village group have been relocated under other domestic projects.  The buffer distance of sewage pumping station is 50m.No residential buildings are within this range under this subproject, therefore, the odor from the pumping station has little impact.  According to the projections, the effluent will be discharged to Hangpi main channel which will significantly increase the COD, NH3-N and TP concentrations after fully mixing, however, the channel water quality can still meet Grade III standard of Surface Water Quality Standard(GB 3838-2002).

143. Special Features in the Proposed Location Change of Wuwei County Wucheng Water Environment (Wuwei Section of Xi River) Integrated Improvement Subproject.  It is suggested no population-densely project (e.g. residential buildings and schools) or environmentally sensitive project (e.g. food and medicine) should be developed within 200m radius of the WWTP.  Before the WWTP construction is completed, the Water Supply Plant’s water intake of Cangtou Community in Wucheng Town should be moved downstream by 1.5km, as promised by Wuwei County Government, to ensure drinking water safety and irrigation.  The solid wastes from WWTP mainly include sludge, grid slag and grit. The predicted solid waste generated during WWTP operation is 7,789.15t/a, including grid slag 43.8t/a, grit 69.4t/a, sludge 7,665t/a and domestic waste 10.95t/a. Grid slag is large particle and suspended substance, similar in composition with municipal solid waste. Grit is harmless matter consisting of inorganic substance with small particle sizes. Therefore, grid slag can be collected directly and transferred together with the municipal waste to the incinerator for disposal in Wuhu City. The sludge, in the short term, is to be collected by local sanitation department and to be used as landscaping fertilize. When the sludge disposal facility in Wuwei County is completed, the sludge will be transported there for centralized disposal. Therefore, the environmental impact from the solid waste generated by the subproject will be minor.  The remaining sludge will be further dewatered to moisture content below 80%. Currently the sludge is to be disposed by the local sanitation department as landscaping fertilizer. When Wuding County’s sludge disposal facility is constructed, the sludge will be transported there for disposal. The domestic waste will be transferred to Wuhu Waste Incineration Plant for treatment.  Plant evergreen trees that can absorb the odor and prevent dust, establish green belts around the plant, grow climbing plants around the workshop, decorate the plant area with flower beds, green land and hedges, and build a garden-like factory with at least 30% greenery.

E. Cumulative Impacts

144. No cumulative impacts from other infrastructure have been identified that can be linked with the project. The Project provides positive environmental benefits, which are not impacts by external projects being implemented by the Government. Cumulative impact from this project is positive.

F. Environmental Health and Safety

145. This consideration combined occupational health and safety of staff/workers during the construction and operation of the component facilities and community health and safety of people living nearby or potentially affected by failures or poor operation of facilities. The considerations of environmental health and safety in this environmental safeguards due

66/81 diligence report include (i) occupational health and safety issues of workers on construction sites with measures to be taken described in the updatedEMP; and (ii) environmental and public health issues related to odor, noise, river dredging, dredged sediment disposal, illegal garbage dumping, WWTP and refuse transfer station operation, etc. and how interventions from this project address these issues.

VI. ANALYSIS OF ALTERNATIVES

A. No Project Alternative Updates

146. Without the wastewater collection and treatment components, approximately 481,400 m3 of untreated wastewater will be discharged into the river systems in the Chao Lake Basin each day. This will cause further deterioration of Lake water quality, which is already ranked as Grade IV or worse. These components therefore are essential in improving Chao Lake water quality, without which Chao Lake water would continue to be unsuitable for use as a drinking water source.

B. Alternatives Considered Updates

147. Various alternatives have been considered for each of the components in this project.Alternatives eventually selected were due to either being the least cost or the best environmental merit, or both.

148. River Rehabilitation of Sub-project H1. To enhance flood prevention, 2.1km river sections were proposed to added in the preliminary design to extend the river rehabilitation length in July 2015.

149. Various dredging methods have been considered.These include dredging in the dry by putting up bunds blocking the water flow then pumping out the river water before removing the river sediment in the dry; and wet dredging using mechanical grabs on the river or off river banks, as well as using cutter suction dredgers.Although dredging in the dry is preferred due to least water quality impact, the choice of dredging alternative will depend on the river, how wide and how deep.It is likely that a combination of dredging methods will be adopted.

150. Wastewater Collection. Analyses on alternative pipeline alignments have been carried out in sub-projects with this component. The least cost alternative, i.e. shortest alignment and least pumping need has been selected in these sub-projects. If pumping is needed, alternative sites for the pumping station have also been considered and the least cost option has also been selected.

151. Pipe materials considered include HDPE, reinforced concrete, steel and unplasticized PVC.HDPE and reinforced concrete have been selected mainly due to cost and ease of obtaining the material and construction. Pipe installation methods considered include HDD (horizontal directional drill, also known as pipe jacking) and open-cut.HDD has been preferred because it creates less nuisance to pedestrians, and has less dust and noise impacts than open-cut during installation. Both installation methods will be adopted with recommendations on using HDD to the maximum extent possible.

152. For disinfection, chlorination, ClO2 and UV radiation have been considered. All adopt ClO2 and UV radiation which has environmental merit over chlorination because ClO2 and UV radiation, unlike chlorination, will not form potentially carcinogenic chlorination-by-products during the disinfection process.

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153. Alternative sites for the WWTPs have also been considered, based on factors such as land availability, least land resumption and resettlement, buffer distances to nearest receptors, potential environmental impacts during construction and operation, effluent receiving water body, consistency with regional development, technological and economic feasibilities, and etc. As results, the locations of Lu’an WWTP and Wuwei WWTP were proposed to change in July 2015.

154. Wetland Rehabilitation. Various design and layout of the wetland have been considered especially in sub-project H1 where they function for river water purification. Different species of submerging, emerging and floating vegetation have been considered to maximize the intended functions of these wetlands.The original proposal in the FSR of sub-project H1is construction of 30 hectares of eco-wetland at the north entrance of Beilaowei ditch to Chao Lake. Based on lakeside land use and development, it is proposed in the preliminary design to construct the wetland at a lower lying-land, i.e. the river channel center will be moved southward for 200~400m, and the new location will be within the range of a fishing ground. And the area of the wetland will remain the same. To further enhance the functions of ecological wetland, two additional much smaller centralized wetland treatment units were proposed in July 2015 to at the water source inlet upstream for rainwater (0.14ha) and at the downstream of the WWTP (0.07ha). So in total three centralized wetlands will be developed.

VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Public Participation during Project Preparation

155. Two rounds of public participation were conducted during project preparation: at domestic EIR commencement andon completion of the draft domestic EIRs.

156. The third round of public participation was conducted in 2014/2015during project implementationto address the proposed changes in three subprojects(H1, L1 and WW1).The purpose of the third round is to report the EIA findings and to obtain feedback from the participants.

157. From July 21-22 in 2015, questionnaires on Lu’an WWTP were distributed to 60 persons, and 60 villagers and urban people (aged from 23~55 years old and 15 are female) responded in the Laowuying village nearby the site (in Sanshi Township). The expected benefits include significant environmental improvement in Pi River Channel and Hangpi Channel (95%). The above consultation results indicated that more than 95% of the consulted public are supportive of the subproject, with the rest being unsure. The anticipated negative impacts during construction mainly include possible noise(25.0%), solid waste pollution (28.3%), air pollution (23.7%), water and soil erosion (20.0%), and others (20.0%). The consulted public made several suggestions for mitigating the potential adverse environmental and social impacts:(i) construction activities close to residential areas should stop between 10:00 pm and 7:00 am; (ii) heavy construction equipment located in close proximity to schools and residential areas should be fitted with noise suppression apparatus; and (iii) dust-generating construction vehicles should be covered and dusty construction areas sprayed with water.

158. Information on the proposed location change of Wuwei WWTP was posted on Wuwei County Government Website on Apr 26, 2014. Summary of the project, EIA work plan and contact person of the EIA team were publicized. Further information disclosure was conducted

68/81 on May 19, 2014after completion of the draft TEIFs by the LDIs. Summary of the subcomponent, anticipated environmental impacts and proposed mitigation measures were publicized. From April 29 to May 13 in 2014, questionnaires on Wuwei WWTP were distributed to 49 persons, and 49 community administration staff and villagers (aged from 24~78 years old and 3 are female) responded in 7 villages nearby the site (Yangxi, Yangdong, Chengwan, Yuanyou, Pengsi, Qiandong, and Lituan villages in Shibei administrative village of Fudu Township). The expected benefits include energy conservation and pollution reduction (53.1%), environmental improvement (48.9%) and infrastructure improvement (20.4%).The above consultation results indicated that more than 93% of the consulted public are supportive of the subproject, with the rest being unsure. And 65.3% and 34.7% of the consulted public regarded air and surface water pollution respectively as the most important environmental issue in project area. The anticipated negative impacts during construction mainly include possible noise and solid waste pollution (44.9%), air pollution (24.5%) and surface water pollution (18.4%), while during operation possible air pollution(69.4%), surface water pollution (40.8%) . The consulted public made several suggestions for mitigating the potential adverse environmental and social impacts:(i) minimizing noise during construction and operation; (ii) strictly managing solid waste; and (iii) strengthening operational control and ensure compliance of effluent.

159. Questions and concerns raised in these forums were comprehensive and summarized below:  Construction impact was the major environmental concern raised by the participants, including impacts on air quality, noise, water quality and ecology; dredged sediment disposal site selection and odor and soil contamination concerns during the disposal; future use of these sites, different dredging methods and their environmental impacts; duration of the construction stage.  Effect of dredging on quantity of river flow and whether the discharge of irrigation water would be affected by the dredged sediment disposal sites  Discharge of wastewater from construction sites onto cultivated land  Disposal of garbage into rivers.  Impacts from the operation of the WWTP and refuse transfer stations, in particular odor from these facilities and adequacy of odor removal equipment.

160. The local LDIs provided answers based on EIR/TEIF findings to these questions.Most of these suggestions have been incorporated in the EIR/TEIF and the originally approved/updated EMP.Despite these questions, the participants endorsed the sub-projects and their components, again taking the view of the need to implement sound environmental management plan and pollution prevention and control measures to mitigate impacts on them and the environment.

B. Future Plans for Public Participation

161. Since some participants raised their concerns on construction programs and impacts, it is important to maintain a dialogue with the stakeholders throughout the construction stage.Continued public participation will facilitate such dialogue so that the stakeholders’ concerns are understood and dealt with in a timely manner.The updated EMP has accordingly provided plans for future public participation.

162. Based on suggestion from the PPTA team’s social specialist, allowance has been made in the EMP to include the establishment of a 3-member community team on each sub-project, who will participate in monitoring the environmental performance of sub-project components during the first three years of the operational stage.

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163. The updated EMP for this project is included as Appendix I to this environmental safeguards due diligence report . Besides public participation plans, the updated EMP specifies the mitigation measures to be adopted and the environmental monitoring to be undertaken during project implementation, as well as institutional strengthening and training for the IAs.

VIII. GRIEVANCE REDRESS MECHANISM

164. Public participation, consultation and information disclosure undertaken as part of the local EIA process, assessment and development of resettlement plans, and consultations undertaken by the project consultants have discussed and addressed major community concerns. Continued public participation and consultation has been emphasized as a key component of successful project implementation. As a result of this public participation and safeguard assessment during the initial stages of the project, major issues of grievance are not expected. However, unforeseen issues may occur. In order to settle such issues effectively, an effective and transparent channel for lodging complaints and grievances has been established, in parallel with the mechanism developed under the resettlement planning process (refer to subproject resettlement plans).

165. The details of the Grievance Redress Mechanisms are described in the updated EMP (Appendix I).

166. In addition to the established project specific channel above, ADB's overall accountability mechanism (2003) applies.24 The mechanism provides opportunities for people adversely affected by ADB-financed projects to express their grievances; seek solutions; and report alleged violations of ADB’s operational policies and procedures, including safeguard policies. ADB’s accountability mechanism comprises two separate, but related, functions: (i) consultation, led by ADB’s special project facilitator, to assist people adversely affected by ADB-assisted projects in finding solutions to their problems; and (ii) providing a process through which those affected by projects can file requests for compliance review by ADB’s Compliance Review Panel.25

IX. UPDATED ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

167. The updated EMP for the Project is presented in Appendix 1. The updated EMP proposes appropriate mitigation measures and describes the involved institutions or mechanisms to monitor and ensure compliance with environmental regulations and implementation of the proposed mitigation measures. Such institutions and mechanisms will seek to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts. The updated EMP draws on the originally approved EMP, individual domestic EIRs, TEIFs and on the PPTA/LIEC discussions and agreements with the relevant government agencies. In July 2015, three subprojects (H1/L1/WW1) were proposed to change. The EMP was reviewed and updated at the end of the detailed design in order to be consistent with the final detailed design.

24 The accountability mechanism replaced ADB’s Inspection Function (1995). 25ADB Compliance Review Panel website: http://compliance.adb.org

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168. The Environmental Management Plan (EMP) was updated to address the changes (Appendix 1), which included institutional arrangements and strengthening for implementing mitigation measures and undertaking environmental monitoring. All direct or indirect environmental impacts have also been considered in the updated EMP, including health and safety issues. The Environmental Monitoring Program was also updated correspondingly. Specifically, the new environmental sensitive receptors in the three subprojectsare added.

B. Inspection, Monitoring, and Reporting

169. Compliance monitoring. During project implementation, ADB and the provincial PMO will closely monitor the compliance of all the covenants under the project and will take necessary remedy actions for any noncompliance. The compliance status will be reported in the semi-annual environmental monitoring reports by the provincial PMO and will be reviewed during project review missions. Quarterly progress reports will include progress of environmental compliance monitoring.

170. Safeguards monitoring. Safeguards monitoring will be undertaken by the provincial PMO through the environmental and social management unit. The provincial PMO will monitor and assess overall project activities under the project design and monitoring framework, including environmental targets. The provincial PMO will report to ADB the progress of the EMP, information on project implementation, environmental performance of the contactors, and environmental compliance through quarterly project progress reports and semiannual internal environmental monitoring reports. The progress reports on the updated EMP will pay particular attention to consultation and participation, and to public and worker safety and health.

171. During construction, the environmental management consultant will support the provincial PMO and municipal and county PMOs to conduct internal environmental monitoring and inspections to ensure that environmental mitigation measures are properly implemented. Inspections or audits will mainly cover construction activities, but these will also review the affected environment. External monitoring and inspection will be conducted by local environmental monitoring stationsunder the local environment protection bureaus or qualified private environmental monitoring service companies. They will be responsible to undertake regular and random environmental monitoring and inspection activities before, during, and after construction as well as in the event of emergencies.

172. Moreover, within three months after each sub-project completion, or no later than 1 year with permission of the EPBs, environmental acceptance monitoring and audit reports of each sub-project completion shall be: (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Regulation on Project Completion Environmental Audit (MEP, 2001), (ii) reviewed for approval of the official commence of individual subcomponent operation by environmental authorities, and (iii) finally reported to ADB. The environmental acceptance reports of the subproject completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations.

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X. CONCLUSIONS AND RECOMMENDATIONS

A. Expected Project Benefits

173. The project will removeover 2.4 million m3 of nutrient laden sediments from the rivers and purification of river water by rehabilitated wetlands will improve the water quality of major rivers flowing into Chao Lake.Wastewater collection and treatment provided by this project will eliminate the discharge of 481,500 m3 of raw sewage into the rivers each day, contributing further to water quality improvement in the Chao Lake Basin.Rivers and the sanitary conditions of nearby residents also benefit from the solid waste management component, by removing illegal dumping of garbage onto river banks.

174. Flooding could be expected to occur more frequent with higher intensity in the future due to climate change.Close to 128 kmof embankments constructed under the river rehabilitation component will improve the flood control functions of rivers, providing protection of nearby population against flooding and associated damages and economic losses.

175. The ultimate beneficiary of this project is Chao Lake, the fifth largest freshwater lake in the PRC.Interventions from this project will ultimately improve the water quality and wetland habitats of Chao Lake, promoting biodiversity and eco-tourism, which contribute to environmental and socio-economic improvements.

B. AdverseImpacts

176. This project will permanently resume approximately 251ha of land, which is an irreversible impact.Compensation and resettlement will fully meet the PRC and ADB applicable policies and requirements. No rare, threatened, or protected species has been recorded in the sub-project areas.No physical cultural resources would be affected by this project.

177. During construction, dust from construction sites, noise from power mechanical equipment, water quality from river dredging and discharge of supernatant water from dredged sediment disposal sites, wastewater and solid wastes generated on construction sites, and construction traffic are the main adverse impacts.Good housekeeping and effective mitigation measures will be implemented to reduce these impacts to acceptable levels.The dredged sediment disposal sites upon completion of the construction stage will be vegetated and landscaped.

178. Impacts during operation include odor from the WWTP, PS and discharge of treated wastewater into nearby water bodies and solid waste disposal such as wastewater sludge and spent UV lamps for wastewater disinfection. Odor will be treated by odor removal systems installed at these facilities.Wastewater will be treated to Class 1A standards, the most stringent discharge standard in the PRC and therefore should have minimal impact on water bodies.

179. Based on information gathered and assessments performed by the domestic EIA institutes, it is concluded that environmental impacts during the construction and operational stages of the project would be acceptable and in compliance with PRC regulations and standards.

C. Risks

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180. The main project risks include the low institutional capacity in environmental management and failure of the PMOs, IAs and O&M organizations to monitor environmental impacts and implement the EMP during construction and operational stages, and for the project associated facilities to be built on time.These risks will be mitigated by (i) providing training in environmental management under the Project; (ii) appointing qualified project implementation consultants, (iii) following appropriate project implementation monitoring and mitigation arrangements, and (iv) ADB conducting project reviews.

D. Follow-up Monitoring and Environmental Management Requirements

181. The EMP has been updated for the design, construction, and operational stages of the project. It is an appropriate environmental safeguarding for the planned works and forms part of a comprehensive set of environmental management documents. The EMP includes institutional responsibilities and costs for implementing the mitigation measures and the monitoring requirements.

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APPENDIX I UPDATED ENVIRONMENTAL MANAGEMENT PLAN

(See separated document)

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APPENDIX II DOMESTIC EIA APPROVAL DOCUMENTS

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APPENDIX III SITE PHOTOS

 WW1 Wuwei County Wucheng Water Environment Improvement Project - PM 20 July 2015

Figure A1- 1 Construction Site of Figure A1- 2 Construction Site of WuchengChengdong WWTP-1 WuchengChengdong WWTP-2

Figure A1- 3 Construction Site of Figure A1- 4 Access Road WuchengChengdong WWTP-3

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 H1 Hefei City Binhu New District Beilaowei Environment Improvement Project-AM 21 July 2015

Figure A1- 5 2814 Fish Pond Figure A1- 6Beilaowei River

Figure A1- 7 1Site of the upstream Figure A1- 8 1Site of the upstream wetland-2 wetland-1

 L1 Chao Lake Basin Lu’an Eastern New Town District Water Environment Improvement-PM 21 Jul 2015

Figure A1- 9 Construction Site of the WWTP Figure A1- 10 Empty Houses Nearby the Construction Site

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