Inner Mongolia Autonomous Region Environmental Improvement Project

Environmental Assessment Report

Summary Initial Environmental Examination Project Number: 39019 February 2006

People’s Republic of China: Inner Mongolia Autonomous Region Environmental Improvement Project

Prepared by [Author(s)]

[Firm]

[City,Prepared Country] by the Government of Inner Mongolia Autonomous Region for the Asian Development Bank (ADB).

Prepared for [Executing Agency] [Implementing Agency]

The summary initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (as of 15 December 2005)

Currency Unit – yuan (CNY)

CNY1.00 = $0.1233 $1.00 = CNY8.11 The exchange rate of the yuan is determined in relation to a weighted basket of currencies of the trading partners of the People’s Republic of China. In this report, a rate of $1.00 = CNY8.11 is used.

ABBREVIATIONS

ADB – Asian Development Bank CFB – circulating fluidized bed CNG – compressed natural gas CO2 – carbon dioxide EA – executing agency EMP – environmental management plan EMU – environmental management unit ESRI – Environmental Science Research Institute GDP – gross domestic product GIMAR – government of Inner Mongolia Autonomous Region IDC – interest during construction IMAR – Inner Mongolia Autonomous Region LARP – land acquisition and resettlement plan NOx – nitrogen oxides O&M – operation and maintenance PIA – project implementing agency PIO – project implementation office PIR – poverty impact ratio PMO – project management office PPMS – project performance management system PPTA – project preparatory technical assistance PRC – People’s Republic of China RP – resettlement plan SEPA – State Environmental Protection Agency SIEE – summary initial environmental examination SO2 – sulfur dioxide SOE – state-owned enterprise SPIA – social and poverty impact assessment TA – technical assistance TSP – total suspended particulates WACC – weighted average cost of capital WWTP – Wastewater treatment plant WEIGHTS, MEASURES, AND CONVERSIONS g – gram GJ – gigajoules (1 billion joules) kg – kilogram km – kilometer kV – kilovolt (1,000 volts) kW – kilowatt kWh – kilowatt-hour (power supply of 1,000 watts in 1 hour) m – meter m2 – square meter m3 – cubic meter MW – megawatt (1 million watts) ton – 1,000 kg 1 MW – 3.6 GJ/hour = 1.42 ton (of steam)/hour

NOTE

In this report, “$” refers to US dollars and “tons” refers to metric tons.

Director General H. S. Rao, East and Central Asia Department (ECRD) Director A. Terway, Energy Division (ECRD)

Team leader B. Lin, Principal Economist (Energy), ECRD Team members B. Konysbayev, Counsel, OGC A. Maxwell, Environment Specialist, ECRD T. Oi, Social Development Specialist, ECRD S. Sasaki, Energy Specialist, ECRD S. Wong, Senior Financial Specialist, ECRD

CONTENTS Page

MAPS

I. INTRODUCTION 1

II. DESCRIPTION OF THE PROJECT 2

III. DESCRIPTION OF THE ENVIRONMENT 3

A. Geology and Climate 3 B. Flora and Fauna 3 C. Water Resources 3 D. Air Quality 4 E Social Conditions 4

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 4

A. Environmental Benefits and Impacts 4 B. Environmental Impacts and Mitigation Measures – Construction Phase 6 C. Environmental Impacts and Mitigation Measures – Operation Phase 8 D. Resettlment and Land Acquistion 9

V. ECONOMIC ASSESSMENT 9

VI. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MANAGEMENT PLAN 10

A. Institutional Requirements 10 B Environmental Management Plan 11 C. Environmental Monitoring 11

VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 12

A. Public Consultation 12 B. Information Disclosure 12

VIII. FINDINGS AND RECOMMENDATIONS 14

IX. CONCLUSIONS 14

APPENDIX

Summary Environmental Management Plan 15

I. INTRODUCTION

1. This summary initial environmental examination (SIEE) has been prepared to assess environmental issues relating to the Inner Mongolia Autonomous Region Environmental Improvement Project. The Project has three components covering district heating supply, natural gas supply (NGS), and wastewater treatment plants (WWTPs) in the three administrative municipalities of Erdos, Wuhai, and Bayannur in Inner Mongolia Autonomous Region (IMAR) of the People’s Republic of China. The SIEE was prepared in accordance with the Asian Development Bank’s (ADB) Environmental Assessment Guidelines (2003) and Environment Policy (2002). The Project is classified as category B (sensitive), in accordance with ADB environmental categorization. The total project cost is estimated at $330.4 million. ADB intends to provide a loan of $110.0 million to finance the foreign exchange cost of the Project. This SIEE is based on six separate environmental impact assessment (EIA) reports, prepared in accordance with the People’s Republic of China’s (PRC) infrastructure development environmental approval process. All components of the Project were assessed in the six EIA reports (Table 1).

Table 1: Summary of Project Environmental Impact Assessments

No. EIA Name Author Date Approval Status 1 District heating IMAR November Approval anticipated by Subcomponent in Environment 2005 March 2006 Wuhai Municipality Science Research Institute (ESRI) 2 District heating Bayannur September Approval anticipated by Subcomponents in Municipal ESRI 2005 March 2006 Bayannur Municipality 3 Changqing Natural IMAR ESRI November Approval anticipated by Gas Field Wuhai–Linhe 2005 March 2006 Main Pipeline 4 Urban NGS Wuhai Municipal November Approval anticipated by Distribution Network in ESRI 2005 March 2006 Wuhai City 5 Urban NGS Bayannur November Approval received Jan 2006 Distribution Network in Municipal ESRI 2005 (Ref: IMAR E-2006-9) Bayannur Municipality 6 Two WWTPs in Bayannur November Approval anticipated by Bayannur Municipality Municipal ESRI 2005 March 2006 IMAR = Inner Mongolia Autonomous Region., NGS = Natural Gas Supply, WWTPs = wastewater treatment plants. Source: PPTA Consultants.

2. The IMAR experiences severe air pollution because of its reliance on coal as its primary fuel and the large number of small inefficient coal-fired domestic heating boilers. The population of IMAR is approximately 24 million, 26% of whom live in urban areas. The PRC’s continued strong economic growth, combined with a significant increase in urban housing construction, has resulted in a heating supply shortage during the 5-month winter season in cities and towns of the IMAR. The shortage of district heating supply has an adverse affect on the quality of life and health of urban residents, especially the elderly, young children, and the poor. Currently, coal provides a significant amount of the indoor cooking fuel in urban areas of IMAR. This contributes significantly to indoor and outdoor pollution and has a negative effect on public health. The proposed project area is located in the semiarid western region of the IMAR. Continued urbanization and industrialization, coupled with a severe shortage of municipal wastewater treatment facilities, have resulted in severe water pollution in the Yellow River and Wuliangsuhai Lake, affecting the health of local residents. 2

II. DESCRIPTION OF THE PROJECT

3. The district heating supply component of the Project will have eight subcomponents:

(i) the Wulateqian subcomponent will construct (a) three units of hot water boilers with 29 MW capacity and auxiliaries, (b) nine heat exchange stations, and (c) 9.8 kilometers (km) of heat supply pipeline, and will close (d) 64 small coal- fired boilers; (ii) the Wulatezhong subcomponent will construct (a) two units of hot water boilers with 29 MW capacity and auxiliaries, (b) eight heat exchange stations, and (c) 3.0 km of heat supply pipeline, and will close (d) 20 small coal-fired boilers; (iii) the Wulatehou subcomponent will construct (a) two units of hot water boilers with 29 MW capacity and auxiliaries, (b) 14 heat exchange stations, and (c) 11.4 km of heat supply pipeline, and close (d) 35 small coal-fired boilers; (iv) the Linhe subcomponent will construct (a) 36.2 km of heat supply pipeline and (b) 31 heat exchange stations, and will close (c) 58 small coal-fired boilers; (v) the Wuyuan subcomponent will construct (a) four units of circulating fluidized bed (CFB)-type hot water boilers with 29 MW capacity and auxiliaries, (b) 12 heat exchange stations, and (c) 9.8 km of heat supply pipeline, and will close (d) 57 small coal-fired boilers; (vi) the Dengkou subcomponent will construct (a) three units of CFB-type hot water boilers with 29 MW capacity and auxiliaries, (b) 11 heat exchange stations, and (c) 3.0 km of heat supply pipeline, and will close (d) 39 small coal-fired boilers; (vii) the Hangjinhou subcomponent will construct (a) three units of hot water boilers with 58 MW capacity and auxiliaries, (b) 36 heat exchange stations, and (c) 10.6 km of heat supply pipeline, and will close (d) 11 small coal-fired boilers; and (viii) the Wuhai subcomponent will construct (a) four units of hot water boilers with 186 MW capacity and auxiliaries, (b) 69 heat exchange stations, and (c) 42.2 km of heat supply pipeline, and will close (d) 112 small coal-fired boilers.

4. The natural gas transmission and distribution improvement component will have two subcomponents:

(i) the Changqing–Wuhai–Linhe natural gas transmission pipeline subcomponent will construct 406 km of pipeline across the region of Erdos, Wuhai and Bayannur; and (ii) the natural gas distribution networks in eight cities and one master CNG station, including the natural gas city networks in the cities of Wuhai, Dengkou, Linhe, Wulateqian, Wulatezhong, Wulatehou, Hangjinghou, Wuyuan, and a master CNG station in Linghe, will supply CNG to these cities.

5. The city wastewater treatment component will have two subcomponents:

(i) the Wulatehou wastewater treatment plant and sewage network subcomponent will construct (a) a 6,000 ton/day wastewater treatment plant, and (b) a 13.2 km sewage piping network; and (ii) the Wulateqian wastewater treatment plant and sewage network subcomponent will construct (a) a 80,000 ton/day wastewater plant to treat the city wastewater and industrial wastewater, and (b) 34.8 km sewage piping network and four pumping stations.

III. DESCRIPTION OF THE ENVIRONMENT

A. Geology and Climate

6. The project area is located in the western region of the IMAR. The project area covers 87,470 km2 and has a total population of 2.2 million. The project area has a temperate continental climate which is characterized by distinct seasonal variations and sharp temperature changes. Average annual precipitation is 131–352 mm, with most occurring between June and September. The annual average temperature is 5.7–9.5ºC, the annual average relative moisture is 39–53%, and the annual sunshine hours range from 2,945 to 3,140. Continued industrialization and agricultural expansion, specifically over pasture lands, have caused ecological deterioration in the project area, which is a major reason for strong sandstorms in north PRC. The project area is primarily located on the desert steppe and includes grassland, farmland, and planted forests.

B. Flora and Fauna

7. Protected fauna in the project area include the Helianthemum Soongoricum Schrenk and Potaninia mongolica Maxim. The major species of wild animals present in the project area include the Alectoris chukar, Calandrella cheleensis, Dipus sagitta, Calan drella, Eremophila alpestris, Vanellus, Tadorna tadorna, Charadrius veredus, Phrynocephalus przewalskii and Eremias przewalskii. The Wuhai and Bayannur EPBs have indicated that these endangered species are not located in the immediate vicinity of the proposed Project, which will mainly be in urban areas. Therefore, it is not anticipated that the Project will affect these endangered species.

8. The Changqing–Wuhai–Linhe NGS main pipeline and the urban pipe network in Wuhai City will cross approximately 15 km of the experimental zone of the Western Erdos National Natural Reserve (WENNR). The WENNR was established in 1997, with the main objective of protecting the endangered palaeo-species Tetraena mongolica Maxim, a national class II protected species. According to the “Regulation of Natural Reserves” issued by the State Environmental Protection Agency (SEPA) and the Ministry of Territory and Resources (MTR), a nature reserve is generally classified into three distinct areas: the core zone, buffer zone, and the experimental zone. In the core and buffer zones, all types of infrastructure facilities are prohibited. The experimental zone may be used for such activities as scientific experimentation, education, tourism, manufacturing, and construction works as long as the appropriate approvals are obtained and mitigation measures are implemented to avoid or minimize the impact. In the area proposed for the pipeline route, there is no buffer zone, only the experimental zone adjacent to the core zone. At present, there are two highways, a railway, and several coking factories in the experimental zone. The IMAR and the Wuhai municipal EPBs have approved the proposed pipeline route. The Forestry Department is currently reviewing the proposed alignment and it is anticipated it will approve the alignment by March 2006.

C. Water Resources

9. The project area is located in the upper reaches of the Yellow River, which includes an extensive irrigation canal network. The major water bodies in the area include the Yellow River and Wuliangsuhai Lake. These watercourses currently receive untreated domestic and industrial wastewater from adjacent urban areas. The Wuliangsuhai Lake is one of the eight largest freshwater lakes in the PRC, with a surface area of 300 km2. There are nearly 200 species of birds, including 12 state first-class and second-class protected species, which feed and nest in the area and over 20 kinds of fish live in the lake. The lake and surrounding

4 area are an important tourism location in the IMAR. An annual discharge of 300 million tons of untreated domestic and industrial wastewater into the lake from the surrounding towns and villages causes serious water pollution, eutrophication, and rapid aquatic weed growth. The untreated municipal wastewaters originating from the project area also pollute the Yellow River. Water monitoring results indicate that water quality in the major surface water courses in the project area is class III to class IV, indicating high levels of pollution. Untreated industrial and domestic wastewater from Wulate Hou county discharges into the main drainage canal, which flows to the Wuliangsuhai Lake. Untreated wastewater from Wulate Qian county discharges into the Yellow River. The nearest distance from the WWTP sites to the Wuliangsuhai Lake is 22 km and the WWTPs are located downstream of Wuliangsuhai Lake.

D. Air Quality

10. In general, air quality in the project areas meets category II to category III ambient air quality standards. The pollutants are mainly SO2 and total suspended particulates (TSP) caused by numerous small, inefficient, domestic, and industrial coal-fired boilers, as well as by the dry climate.

E. Social Conditions

11. There have been no cultural, historical, or archaeological sites identified along the alignment. The key social indicators of the project area are summarized in Table 2.

Table 2: Key Social Indicators of the Project Area

Item Indicator Population Total population: 2.27 million Nonagricultural population: 0.95 million Agricultural population: 1.32 million Land Total area: 85,700 km2 (IMAR: 1.1 million km2) Urbanization 2 cities, 7 counties Economy GDP: CNY23.595 billion in 2004 (IMAR: CNY507.36 billion) Major industrial products: coal, cement, sugar, dairy, coke, paper Major crops: wheat, corn, beans, beetroots, tubers and oil bearing crops IMAR = Inner Mongolia Autonomous Region, km2 = square kilometer. Source: PPTA Consultants.

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Environmental Benefits and Impacts

12. Outdoor Air Quality. The central heating supply subcomponents will significantly improve the local air quality by closing 396 small, inefficient coal-fired boilers. Water and soil pollution will be indirectly reduced because there will be fewer particulate matter emissions and less acid rain. The closure of the small coal-fired boilers will also (i) increase the urban coverage of district heating, resulting in less indoor coal burning for heating, with its associated outdoor emission reductions; (ii) reduce traffic hazards caused by coal-transport vehicles in urban areas (all proposed heating plants will be located on the outskirts of towns); and (iii) improve public health and the living environment in areas currently affected by noise and flue dust from small boilers. The NGS subcomponents will significantly reduce outdoor air pollutants emitted from the combustion of coal for indoor cooking purposes. The transportation of natural gas through a pipeline (compared with the transportation of coal by road) will eliminate pollutants generated

5 from trucking, including vehicle emissions, noise, and fugitive dust. Additionally, the Project will establish a compressed natural gas automobile filling station to support a proposed fleet of public buses and taxis which will be converted from diesel or gasoline consumption. This will significantly improve urban pollution levels. Projected reductions in coal usage and emissions are summarized in Table 3.

Table 3: Estimated Reduction in Coal Consumption and Emissions by District Heating and Natural Gas Components

Central Heating Natural Gas Item Total Supply Supply Saving/replacement of coal (ton/annum) 340,000 200,000 540,000

Emission reduction of SO2 (ton/annum) 9,617 5,488 15,105 Emission reduction of TSP (ton/annum) 8,260 10,876 19,136 Emission reduction of NOx (ton/annum) 2,272 2,272

Emission reduction of CO2 (ton/annum) 787,2 43 787,243 Reduction discharge of slag (ton/annum) 62,978 39,149 102,127

CO2 = carbon dioxide, NOx = nitrogen oxides, SO2 = sulfur dioxide, TSP = total suspended particulates. Source: SO2 and TSP database on EIA reports, remaining data based on typical coal composition and removal efficiencies of new boilers.

13. Surface Water Quality. The two WWTPs will significantly reduce annual pollutant loads into the Yellow River and the Wuliangsuhai Lake. About 26.28 million tons per year of treated effluent from the Wulate Qian WWTP will be reused for agricultural irrigation and power plant cooling. This will save an estimated 9,733 tons/year chemical fertilizer. A summary of the estimated reductions in pollutant discharge by the two WWTPs is in Table 4.

Table 4: Estimated Reductions in Pollutant Discharge by the Wastewater Treatment Plant Component

Pollutant Reductions in Pollutant Load (ton/annum) CODCr 14,126 BOD5 5,738 SS 7,600 NH3-H 898 Total N 1,234 Total P 88 BOD5 = 5-day biological oxygen demand, CODcr = chemical oxygen demand dichromate, N = nitrogen, NH3-H = ammonia nitrogen, P = particulates, SS = suspended solid. Source: Project EIA Reports.

14. Indoor Air Quality. The central heating supply component will replace indoor coal burning with district heat in some areas, thereby reducing indoor air pollution. This will have a significant positive impact on the health of residents. An estimated 167,000 people, or 28% of the population of the urban areas, will substitute coal burning for centralized heating as a result of this Project. In some areas, NGS will replace indoor coal burning for cooking with natural gas, also contributing to improved indoor air quality.

15. Urban Coal Transport. The central heating supply component will reduce the number of coal truck trips through the urban areas to supply small boilers. All new centralized boilers will be located on the edge of the urban area. The NGS subproject will replace the use of coal for cooking purposes in some urban areas, further reducing the need for coal truck trips. The reduction in coal trucks entering urban areas will improve the urban environment by reducing dust levels and reducing urban vehicle exhaust emissions. It is estimated that more than

28,400 coal truck trips a year will be saved by the central heating and natural gas supply subcomponents.

B. Environmental Impacts and Mitigation Measures—Construction Phase

16. Soil. Potential environmental impacts on soil by the Project include (i) soil erosion, (ii) soil contamination, (iii) temporary and permanent acquisition of agricultural land, and (iv) impact from construction traffic. Soil erosion may be caused by the excavation of pipe trenches and spoil earthwork from pipeline construction, as well as by demolition and site preparation for construction of the natural gas stations, central heating stations, and WWTPs. Mitigation measures will include (i) covering temporary soil stockpiles, (ii) minimizing active excavation areas during pipe laying, (iii) appropriate recompaction of pipe trenches, and (iv) installation of sediment fences where appropriate to minimize sediment runoff. Disturbed surfaces, such as recompacted pipeline trenches, will be revegetated to minimize erosion. Soil contamination may be caused by inappropriate storage and disposal of hazardous materials and waste. Mitigation measures will include appropriate storage of hazardous materials and waste in secure, covered areas with secondary containment. Spill cleanup equipment will be provided at each construction site, and training will be conducted on emergency spills response procedures. All waste will be removed from sites to approved waste disposal sites.

17. Agricultural land may be acquired for permanent structures as well as for temporary material storage areas and construction camps. About 51.56 hectares will be permanently acquired and about 653.45 hectares will be temporarily occupied by construction activities while pipelines are being laid and ancillary stations are being constructed. Construction traffic may degrade surface soils during the construction period. Mitigation measures will include confining vehicles to existing roads and limiting access to agricultural land.

18. Water. Potential environmental impacts on water by the Project include (i) increased sedimentation of adjacent water resources from construction activities, and (ii) inappropriate wastewater disposal. Construction activities will disturb surface soils and have the potential to increase sediment runoff into adjacent waterways. In particular, gas pipelines will be constructed across a number of rivers and canals. Inappropriate disposal of domestic wastewater from construction camps and disposal of wash down water from construction equipment and vehicles have the potential to affect adjacent surface water resources. Mitigation measures will include installation of appropriate septic disposal systems at construction camps. All construction equipment wash down areas will be equipped with water collection basins and sediment traps.

19. Air Quality and Noise. Potential environmental impacts on air quality and noise during construction include (i) dust from construction activities, (ii) construction vehicle emissions, and (iii) construction noise. Fugitive dust may be caused by excavation, demolition, vehicle movement, and materials handling, particularly downwind from the construction sites. Mitigation measures will include water spraying of transportation routes and materials handling sites where dust is being generated. Particular attention will be paid to dust suppression adjacent to sensitive receptors such as schools or residential areas. Materials will be stored in appropriate places and covered or sprayed to minimize fugitive dust. Materials will be covered during transportation to avoid spillage or dust generation. Air pollution may be caused by emissions from vehicles and construction machinery. Vehicles and construction machinery will be properly maintained and will comply with emission standards. Noise may be caused by construction equipment and vehicular movement, potentially affecting residents of nearby residential areas and schools. Vehicles and construction machinery will be required to be properly maintained and to comply with emission standards. Construction will be prohibited between 19:00 and

06:00 in sites adjacent to residential areas. There is a potential impact on residents from noise levels from district heating boilers during the operational phase. However, it is anticipated that this will be relatively minor, as the boilers are located either in industrial areas or in sparsely populated areas on the outskirts of urban areas. Mitigation measures will include strict compliance with noise standards.

20. Waste Management. Inappropriate waste storage and disposal has the potential to affect soil, groundwater, and surface water resources and consequently public health. Mitigation measures will include appropriate storage of hazardous materials and waste in secure, covered areas with secondary containment. Hazardous waste will be stored separately from non- hazardous waste. All waste (hazardous and non-hazardous) will be removed from sites to approved waste disposal sites. There will be no on-site landfills at any of the construction sites. Construction waste will be promptly removed from the sites. Burning of waste will be prohibited.

21. Flora and Fauna. Potential impact to flora and fauna from the proposed Project includes (i) removal of vegetation during construction activities, and (ii) impact on Tetraena mongolica Maxim in the WENNR. There will be some removal of vegetation along the pipeline trenches for the NGS, as well as from construction at the central heating supply and WWTP subcomponents. All works will be carried out so that damage or disruption to vegetation is minimized. Trees or shrubs will only be felled or removed if they impinge directly on the permanent works or necessary temporary works. After pipe-laying construction, the trenches will be revegetated.

22. The Changqing–Wuhai–Linhe NGS main pipeline and the urban pipe network in Wuhai City will cross about 15 km of the experimental zone of the WENNR, established in 1997 to protect the endangered palaeo-species Tetraena mongolica Maxim, a national class II protected species. In addition to standard protection measures, specific mitigation measures will include (i) limiting the construction corridor to 9 m width (including trenching activities and access roads); (ii) providing training for all construction workers on environmental management issues relating to protected species; (iii) special precautions to prevent fires during construction; (iv) revegetation of recompacted trenches, including removal and preservation of Tetraena mongolica Maxim plants, if encountered, and replanting after completion of pipeline laying activities; and (v) burying the pipeline 2 m below ground.

23. Cultural. Construction activities have the potential to disturb cultural sites, although none has yet been identified. Procedures will be established so that cultural sites can be identified and protected if they are discovered during construction. Mitigation measures will include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The relevant cultural authority, as well as the Project Implementation Unit (PIU), will be promptly notified, and construction will resume only after a thorough investigation. As no cultural or archeological sites have been identified along the project alignment, the potential for affecting cultural sites is considered to be low.

24. Social Issues. Potential social impacts include (i) traffic congestion, (ii) interruption to municipal services, and (iii) threats to public safety. Traffic congestion may be caused by an increase in construction traffic in urban areas. Roads may be fully or partially closed during construction, causing temporary inconvenience to residents, commercial operations, and institutions. Construction scheduling will consider impacts to traffic congestion. In conjunction with the relevant authority and traffic plans will be prepared before construction begins in congested urban centers. Construction of project facilities may require relocation of municipal utilities such as sewers, gas, water supplies, communication cables, and power poles. This may require temporary suspension of services to adjacent communities. Construction activities will be planned with a view to keeping disturbances to utility services to a minimum. Temporary land

8 occupation will be planned well ahead of construction to minimize the impact of the disturbance. Land will be reinstated to its original condition upon completion of construction. Construction sites will be located in residential and commercial urban areas, which may present a threat to public safety. Mitigation measures will include implementation of safety measures at the construction sites to protect the public, including warning signs to alert the public of potential safety hazards and barriers to prevent public access to construction sites.

C. Environmental Impacts and Mitigation Measures—Operational Phase

25. Wastewater Treatment Plants. The primary air emissions from the wastewater treatment plants (WWTPs) will be nuisance odors generated by screening, grit removal, primary tanks, secondary (aeration) tanks, and sludge handling processes caused typically by ammonia (NH3), and hydrogen sulfide (H2S). The sites of the WWTPs have been selected so that they are at least 300 m from residential areas. Other mitigation measures involve minimizing potential odors, including source control, through proper ventilation for the sludge dewatering room and planting trees around the WWTPs. The two WWTPs will generate a total of about 1,465 tons of dry sludge cake a year. Handling and final disposal of this waste in a safe, proper, and environmentally responsible manner will be a substantial task. Dry sludge disposal will occur by agricultural application and landfill at solid waste disposal sites. Additionally, (i) operational procedures will ensure plants and sludge disposal facilities are operated as designed, (ii) low- noise equipment will be used, and (iii) regular consultations will be held with residents in nearby communities and issues will be addressed promptly. Treated wastewater will be used for irrigation on adjacent agricultural land. There is potential for land contamination if appropriate treatment levels are not achieved. Mitigation measures will include effluent monitoring to ensure compliance with appropriate discharge standards. The wastewater discharge from the WWTPs will conform to discharge standards, as summarized below.

(i) Wulate Hou county WWTP. Treated wastewater will discharge directly into a drainage canal connected to the Yellow River. Discharge standards will comply with national standards for Grade II “Pollutant Discharge Standards of Urban Wastewater Treatment Plants” (GB18918-2002). (ii) Wulate Qian county WWTP. Treated wastewater will be used for agricultural irrigation. Discharge standards will comply with the levels stipulated for dry-land crops in the national “Standard for Irrigation Water Quality” (GB5084-92).

26. District Heating. Adverse environmental impacts from district heating during the operation period will be mitigated by ensuring (i) the boiler stacks are 80–100 m high to minimize direct impacts on adjacent areas; (ii) electro or wet precipitators are not less than 95% efficient; (iii) flue gas desulfurization equipment is not less than 85% efficient; (iv) dust suppression activities, such as spraying water on coal and fly-ash and covering coal stockyards, minimize the dispersion of airborne dust during coal and fly-ash offloading, stockpiling, and handling in the plants; (v) clay or synthetic liners minimize contamination of groundwater from fly-ash stockyards; (vi) wastewater from wet fly-ash disposal and coal spraying is recycled to conserve water; and (vii) soundproof covers and walls in the plants reduce noise. Air emissions from the boilers will comply with “Emission Standards for Coal-fired, Oil-fired and Gas-fired Boilers” (GB13271-2001).

27. Natural Gas System. Adverse environmental impacts from the NGS activities during the operation period will be mitigated by ensuring that (i) domestic wastewater from NGS stations will be treated in septic tanks and then discharged into a municipal sewer or used for watering trees and grass, (ii) low-noise equipment and the planting of trees around the stations will minimize the noise impact on adjacent residents, (iii) gas leakage monitoring will be conducted

9 regularly at the stations and along the pipeline alignment, and (iv) revegetation will be inspected along the pipeline routes for at least 3 years after completion of construction.

D. Resettlement and Land Acquisition

28. No resettlement will be required during the Project. Approximately 773.36 mu (51.56 ha) of land will be acquired, of which 32% (245.45 mu or 16.36 ha) is farmland and 68% (527.91 mu or 35.19 ha) is wasteland and sandy land. The land will be used as follows: (i) 153.08 mu (10.21 ha) will be occupied by the gas transportation system, (ii) 504.88 mu (33.36 ha) by the central heating system, and (iii) 115.4 mu (7.69 ha) by WWTP. Another 9,801.8 mu (653.45 ha) of land will be occupied temporarily during the construction phase. It is estimated that the farmland acquisition will lead to 133 persons (60 households) losing small parts of their farmland. Based on the field survey, it is expected that the average loss of farmland per household will be 4%, which means the impacts will be shared among most of the villagers. No housing relocation is expected. Resettlement plans have been prepared in accordance with PRC land laws and ADB’s policy on involuntary resettlement.

V. ECONOMIC ASSESSMENT

29. The current cost estimate for the Project is $330.4 million. The costs related to environmental protection are estimated at $8.8 million (CNY71.6 million as of 15 December 2005) or 2.7% of the total estimated cost of the Project. The environmental protection costs for the subcomponents are summarized in Table 5.

Table 5: Estimated Major Environmental Mitigation Costs—District Heating

Item Cost ($) Responsibility Construction and Equipment Installation Period Mitigate dust from construction and transportation 225,679 Contractor Mitigate construction–generate wastewater pollution 93,209 Contractor Construction of facilities for wastewater treatment and circulation 485,308 Contractor Noise control measures 2,470 Contractor Installation of soundproof facilities 381,111 Contractor Solid waste disposal 157,407 Contractor Desulphurization and dust-control equipment 2,486,419 Contractor Soil conservation, revegetation, and landscaping 739,100 Contractor Purchase environment monitoring instrument and equipment 271,600 Contractor Coal storage area with dust suppression facilities 169,753 Contractor Slag containment yard 779,382 Contractor Other 415,715 Contractor Monitoring 39,600 Contractor/EPB Operation Period Fly-ash and rubbish disposal 58,600/year HS Companies Monitoring 45,800/year HSC/EPB Source: Project Feasibility Study.

Table 6: Estimated Major Environmental Mitigation Costs: Natural Gas System

Item Cost ($) Responsibility Construction Period Mitigate dust from construction and transportation 62,962 Contractor Mitigate construction–generate wastewater pollution 17,530 Contractor Construction wastewater collection and treatment facility 96,296 Contractor Solid waste disposal 177,160 Contractor Conservation of soil and water, revegetation, and landscaping 756,432 Contractor Compensation and revegetation in the natural reserves 395,061 Contractor Installation of soundproof facilities in NGS stations 209,876 Contractor Other 340,490 Contractor Monitoring 146,493 Contractor/EPB Operation Period Wastewater treatment and rubbish disposal in NGS stations 118,024/year NGS Company Monitoring 245,839/year NGSC/EPB EPB = environmental protection bureau, NGS = Natural Gas Supply. Source: Project EIAs.

Table 7: Estimated Major Environmental Mitigation Costs—Wastewater Treatment Plants

Item Cost ($) Responsibility Construction Period Mitigate dust from construction and transportation 6,172 Contractor Mitigate construction–generate wastewater pollution 3,703 Contractor Solid waste disposal 43,209 Contractor Conservation of soil and water, revegetation, and landscaping 153,703 Contractor Installation of soundproof facilities in WWTPs 119,753 Contractor Procurement and Installation of on-line monitoring instruments 37,037 Contractor Other 1,238 Contractor Monitoring 15,185 Contractor Operation Period Mitigate odor impact from WWTPs 37,037/year WWTP Soil contamination control for sludge treatment and disposal (proper landfill and 9,876/year WWTP agriculture application) Monitoring 49,382/year WWTP/EPB EPB = environmental protection bureau, WWTPs = wastewater treatment plants. Source: Project EIAs.

VI. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MANAGEMENT PLAN

A. Institutional Requirements

30. The IMAR Development and Reform Commission (DRC) will be the Executing Agency (EA) for the Project. A project management office (PMO) has been established under the EA to manage project implementation. The Project has been divided into a number of contract packages. Each will be managed by a separate implementing agency (IA), which will manage individual contracts. The PMO will designate an environmental representative to coordinate environmental management. Each IA will establish an environmental management unit (EMU) to coordinate environmental management issues associated with each contract package. The EMUs will oversee environmental management and monitoring during construction and operation, including environmental supervision of contractors. A grievance redress committee will be established under the Project to address public complaints. The contractor will be responsible for managing the grievance redress system and the committee will be chaired by the EA.

B. Environmental Management Plan

31. The EA has overall responsibility for ensuring that all environmental standards and procedures are followed. A summary environmental management plan (EMP) is presented in the Appendix. This will be updated during the engineering design stage, translated into Chinese and incorporated into bidding documents and civil contracts. Successful contractors will be responsible for preparing comprehensive EMPs, based on the summary EMP. The IA EMUs will be responsible for reviewing and approving the comprehensive EMPs, and for ensuring that the contractors comply with their provisions during the construction and operational phases. The EMUs will be responsible for ensuring that EMPs are updated periodically during the construction period. This SIEE is based on six EIAs which are currently under review by SEPA. The EA will ensure that any changes required by SEPA are reflected in the EMPs and the project final design. The EMPs will be implemented by the contractors under supervision of the EMUs. The construction contractor will designate an environmental representative who will manage environmental issues during construction.

C. Environmental Monitoring

32. The IA EMUs will prepare detailed environmental monitoring plans for the Project before bidding for construction contracts begins. The EMP will be included in all bidding contractor documents and construction contracts. The EMUs will ensure that it is updated, as required, during project construction and operational phases. Environmental monitoring will be undertaken by a range of authorities, including local EPBs, Forestry Department, Relics Bureau, etc. The EMU will be responsible for coordination of all environmental monitoring activities, including collation of all monitoring results.

33. The PMO environment representative will collect environmental monitoring reports from the IA EMUs and submit environmental monitoring reports to the EA and ADB twice a year during construction and once a year for 2 years after completion of construction. The environmental monitoring reports will include (i) environmental mitigation measures undertaken, (ii) monitoring activities undertaken, (iii) physical monitoring data collected, (iv) analysis of monitoring results against relevant standards, (v) additional mitigation measures required (if any), (vi) environmental training conducted, and (vii) environmental regulatory violations. The initial environmental monitoring report will also include baseline data. A project completion environmental monitoring report will be submitted after completion of construction, which will summarize project environmental impacts. An environmental monitoring framework is provided in Table 8.

Table 8: Environmental Monitoring Framework

Parameter Responsible Authority Risks Archaeological Sites Relics Bureau Impact to archaeological sites West Erdos National Nature Reserve Impact to WENNR Impact to endangered species Wuhai Administration Bureau IMAR Ecology and Environment Soil Erosion Loss of productive land Monitoring Station Noise EPB Disturb residents Vibration EPB Disturb residents, building damage Air Emissions EPB Acid rain, respiratory problems, dust Wastewater and Surface water contamination, public health, EPB Surface Water impact to ecology EPB = environmental protection bureau, IMAR = Inner Mongolia Autonomous Region, WENNR = Western Erdos National Natural Reserve. Source: PPTA Consultants.

34. For compliance monitoring, the monitoring will follow national standard methods for monitoring pollutants. The Wuhai and Bayanur municipal EPBs, as well as the county-level EPBs, through their certified environmental monitoring stations, will undertake environmental compliance monitoring of the individual projects. The environmental monitoring capacity of the EPBs has been assessed and is considered satisfactory for the proposed monitoring requirements. Three levels of EPBs will be involved in the Project (provincial, municipal, and county). County-level EPBs typically have about 30 staff and basic monitoring equipment, which is suitable for most monitoring requirements. Where county EPBs lack equipment or qualified staff for specialized monitoring, expertise will be obtained from municipal or provincial EPBs.

VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

A. Public Consultation

35. Two rounds of public consultations on environmental impacts of the Project were held between June and September 2005, following the SEPA Environmental Impact Assessment Technical Guidelines and ADB’s Environmental Assessment Guidelines (2003).

36. Central Heating Supply Subcomponents. Using random sampling, multiple-choice questionnaires were distributed to 450 affected people from the subproject areas. The respondents included government employees, workers, farmers, herdsmen, and technicians. The surveys solicited attitudes toward the proposed subcomponents and their impact on the air, water, vegetation, soil, ecology, environment, public health, and economic development. Of the respondents, 82% were positive about the central heating subproject, with the main complaints coming from residents adjacent to the proposed boilers who were concerned about potential impacts from noise and air pollution. Public hearings were held separately in the eight project areas. Participants included local people’s congresspersons, representatives of social groups, residents who live near the project sites for the central heating supply subcomponents, local government departments of the development and reform commissions, construction bureaus, planning bureaus, municipal facility management administrations, grassland management administrations, and the EPBs. The major opinions expressed at the meetings were: (i) the subcomponents would promote economic development in project areas and improve local air quality and living standards; (ii) the subcomponents should be implemented as soon as possible; (iii) the environmental management and monitoring plans and the mitigation measures should be strictly followed; (iv) there should be proper tree-planting and landscaping in the central heating plants; and (v) local labor should be used for construction and operations.

37. Wastewater Treatment Subcomponents. Using random sampling, multiple-choice questionnaires were distributed to 50 affected people. Respondents included government employees, workers, farmers, herdsmen, and technicians. Of the respondents, 94% had positive attitudes toward the subproject, 5% negative, and 1% had no opinion); 58% believed that the subcomponents would be beneficial to local economic development; 96% approved of the proposed sites; and 4% disapproved of the sites. Public hearings were held separately in the two project areas, participants included the local people’s congressperson, residents living near the pipeline routes and WWTP sites, as well as representatives from relevant local government departments of the development and reform commissions, construction bureaus, planning bureaus, municipal facility management administrations, grassland management administrations, and the EPBs. The major opinions expressed at the meetings were: (i) the subcomponents would promote economic development in the project areas, improve living standards, working conditions, and the local environment and (ii) the proposed treatment processes would be suitable for the raw wastewaters. The most important concern expressed was the need for the Project to conduct sound environmental management during construction and operation to minimize adverse impacts such as noise, dust, and odor to the surrounding communities.

38. Natural Gas System Subcomponents. The IMAR ESRI conducted the public participation activities for the Changqing–Wuhai–Linhe main pipeline subcomponent; the Bayannur ESRI surveyed eight urban pipeline network subcomponents in Bayannur Municipality; and the Wuhai ESRI carried out the urban pipeline network subcomponent in Wuhai City. Altogether, 325 multiple-choice questionnaires were distributed to people concerned with the subcomponents and those living near the subproject areas and 319 valid returns were received. The respondents included government employees, workers, farmers, herdsmen, and technicians. Of the respondents, 95.6% expressed support for the Project and 4.4% had no opinion; 86.5% believed that the subcomponents would be beneficial to the local economic development; and 93.7% thought that the subproject would improve local living standards. The PESRI and Wuhai MESRI also visited some nongovernment organizations and enterprises. The Bayannur MESRI held a public hearing on 20 September 2005. The major opinions expressed at the hearing were (i) the subcomponents would promote economic development in the project areas, improve living standards and the local environment; (ii) the proposed processes and the pipeline routes were acceptable; (iii) the subcomponents should be implemented as soon as possible; (iv) environmental impact mitigation measures should be strictly followed to minimize impacts from noise and dust; and (v) management and maintenance of the pipelines and NGS stations should be strengthened during operations to avoid accidents.

B. Information Disclosure

39. The following environmental information disclosure will be made.

a. The SIEE will be available for review at www.adb.org for 120 days before consideration of the Project by the ADB Board. b. Copies of the SIEE will be made available on request. c. All environmental monitoring reports will be available at www.adb.org. d. A formal grievance redress committee will be established, as discussed under section II.

VIII. FINDINGS AND RECOMMENDATIONS

40. The Project has significant positive environmental impacts, including improved indoor and outdoor air quality, surface water quality, and urban environment. The district heating subcomponent will significantly improve the local air quality by closing 396 small, inefficient coal-fired boilers in the center of urban areas. This will also (i) increase the urban coverage of district heating, resulting in less indoor coal burning for heating; (ii) reduce traffic hazards caused by coal-transport vehicles in urban areas; and (iii) improve public health and the living environment of residents currently affected by noise and flue dust from the existing small boilers. The natural gas transmission and distribution component will generate substantial environmental benefits by eliminating air pollutants emitted from the combustion of coal for indoor cooking purposes. Pipeline transportation of natural gas will eliminate all pollutants generated from current road transportation of coal and gas. A compressed natural gas automobile filling station will support a proposed fleet of converted public buses and taxis. The city wastewater treatment component will significantly reduce annual pollutant loads into the Yellow River and the Wuliangsuhai Lake, thereby improving surface water quality.

41. The major potential adverse environmental impacts during both construction and operation periods include disturbance of soil and vegetation, water pollution, noise impact to residential areas, solid waste disposal, odor from WWTPs, and disturbance or contamination of ecologically sensitive areas. The NGS pipeline will pass through 15 km of the experimental zone of the WENNR. Specific environmental mitigation measures will be conducted to minimize the impact on the experimental zone. Estimated costs for environmental protection and mitigation measures account for 2.7% of the total project investment.

42. Extensive community consultation indicated that most of the affected people have a positive attitude toward the Project and that they believe it will benefit the local environment, living standards, and economic development. Negative opinions on the Project focused on localized noise, odor, and air pollution associated with construction and operation of the subcomponents. The environmental mitigation measures have been developed to address these specific concerns.

IX. CONCLUSIONS

43. It is anticipated that the proposed Inner Mongolia Autonomous Region Environmental Improvement Project will have significant positive environmental impacts on the project area, including improved indoor and outdoor air quality and enhanced urban environments. Based on the results of the SIEE, the Project will not generate significant environmental impacts, provided the mitigation measures are implemented appropriately. Based on the requirements of ADB, there are no further environmental studies required for the proposed Project.

SUMMARY ENVIRONMENTAL MANAGEMENT PLAN

Environmental Impact/Issue Mitigation Measures Location Time Frame Responsibility Implementation Supervision A. Construction Phase 1. Soil Soil erosion Mitigation measures will include (i) covering temporary Construction sites Construction Contractor soil stockpiles, (ii) minimizing active excavation areas during pipe laying, (iii) appropriate recompaction of pipe trenches, and (iv) installation of sediment fences where appropriate to minimize sediment runoff. Disturbed surfaces, such as recompacted pipeline trenches, will be revegetated to minimize erosion. Soil contamination by Mitigation measures will include appropriate storage of Construction sites and Construction Contractor hazardous waste and hazardous materials and waste in secure, covered areas material storage areas materials, including with secondary containment. Spill cleanup equipment will hydrocarbons be provided at each construction site, and training will be conducted regarding emergency spills response procedures. All waste will be removed from sites to EMU IMAR approved waste disposal sites. Ecology and Impact on temporarily Mitigation measures for the impact on soil will include the Construction sites and Construction Contractor Environment acquired agricultural land selection, where possible, of sites (permanent and material storage areas Monitoring temporary) that do not occupy agricultural land. Where Station land is temporarily occupied, appropriate rehabilitation will be conducted following completion of construction activities. During excavation of pipeline trenches, topsoil will be stockpiled, stored, and replaced after the laying of pipelines. Loss of topsoil The topsoil from all areas to be permanently covered will Construction sites Construction Contractor be stripped and stored in stockpiles. Topsoil will be used for revegetation works. Construction vehicles, machinery, and equipment be moved or be stationed in designated areas. Access to adjacent agricultural land will be minimized. 2. Water Siltation into water bodies Mitigation measures will include erosion control measures Throughout project Construction Contractor EMU, EPB

and appropriate engineering design to minimize corridor Appendix generation of sediment runoff during construction activities. Inappropriate wastewater Mitigation measures will include installation of appropriate Construction camps Construction Contractor EMU, EPB disposal septic disposal systems at construction camps and and (construction), operation sites. All construction equipment wash down operation IA (operation)

areas will be equipped with water collection basins, 15 including oil separators, and sediment traps.

Environmental Impact/Issue Mitigation Measures Location Time Frame Responsibility 16 Implementation Supervision Appendix

3. Air Quality Generation of dust Mitigation measures will include water spraying of Construction areas Construction Contractor EMU, EPB transportation routes and materials handling sites where and access roads dust is being generated. Particular attention will be paid to

dust suppression adjacent to sensitive receptors such as schools or residential areas. Materials will be stored in appropriate places and covered or sprayed to minimize fugitive dust. Materials will be covered during transportation to avoid spillage or dust generation. Emission from construction Vehicles and construction machinery will be properly Construction areas Construction Contractor EMU, EPB machinery maintained and will comply with relevant emission standards. 4. Noise Noise from construction Vehicles and construction machinery will be required to be Construction areas Construction Contractor EMU, EPB equipment properly maintained and to comply with relevant emission standards. Construction will be prohibited between 7:00 pm and 6:00 am adjacent to residential areas 5. Solid Waste and Hazardous Materials Soil and water contamination Mitigation measures will include appropriate storage of Construction sites and Construction Contractor EMU, EPB from inappropriate storage hazardous materials and waste in secure, covered areas construction camps and (construction and disposal with secondary containment. Hazardous waste will be operation period) and IA stored separately from non-hazardous waste. All waste (operation (hazardous and non-hazardous) will be removed from period) sites to approved waste disposal sites by licensed contractors. There will be no on-site landfills developed at any of the construction sites. Construction waste will be promptly removed from the sites. Burning of waste will be prohibited. 6. Flora Loss of or damage to All works will be carried out so damage or disruption to At construction sites Construction Contractor EMU, EPB vegetation vegetation is minimized. Trees or shrubs will only be felled or removed if they impinge directly on the permanent works or necessary temporary works. After pipe laying construction, the trenches will be revegetated. Impact on Tetraena Specific mitigation measures will include (i) limiting the Pipeline in WENNR Construction Contractor EMU, WENNR mongolica Maxim in the construction corridor to 9 m width (including trenching Authority WENNR activities and access roads), (ii) providing an environmental training program for all construction workers regarding environmental management issues relating to protection of the protected species, (iii) special precautions to prevent fire during construction, (iv) revegetating recompacted trenches, including removal and preservation of Tetraena mongolica Maxim plants, if encountered, and replanting after completion of pipeline- laying activities, and (v) burying the pipeline 2 m below ground.

Environmental Impact/Issue Mitigation Measures Location Time Frame Responsibility Implementation Supervision 7. Historical, Cultural, and Archaeological Sites encountered during Should a historical, cultural, or archaeological be Construction sites Construction Contractor EMU, Relics construction encountered during construction, all activities will halt and Bureau an established action plan will be enacted. 8. Social Impact Traffic congestion Construction scheduling will consider impacts on traffic Construction sites Construction Contractor EMU congestion. In conjunction with the relevant authority, traffic plans will be prepared prior to commencement of construction in the congested urban centers. Interruption to municipal Construction activities will be planned to minimize Adjacent to Construction Contractor EMU services duration of disturbance to utility services. construction sites Impacts on public safety Mitigation measures will include implementation of safety Construction sites Construction Contractor EMU measures at the construction sites to protect the public, including warning signs to alert the public of potential safety hazards and barriers to prevent public access to construction sites. B. Operation Phase 1. Wastewater Treatment The primary air emissions from the WWTPs will be Wastewater treatment Operation IA EPB Plants nuisance odors generated by screening, grit removal, plant sites primary tanks, secondary (aeration) tanks, and sludge handling processes (typically by NH3, H2S and methyl sulphide). (i) The sites of the WWTPs have been selected so that they are at least 300 m from residential areas. (ii) Other mitigation measures include source control, such as proper ventilation for the sludge dewatering room and planting trees around the WWTPs. The two WWTPs will generate a total of about 1,465 tons yearly of dry sludge cake. (i) Dry sludge disposal will occur by agricultural application and landfill at solid waste disposal sites. (ii) Operational procedures will ensure plants and sludge disposal facilities are operated as designed. (iii) Low-noise equipment will be used to reduce noise impact. (iv) Regular consultations will be held with residents in

nearby communities and issues will be addressed Appendix promptly. Treated wastewater will be used for irrigation on adjacent agricultural land. There is potential for land contamination if appropriate treatment levels are not achieved. (i) Continual effluent monitoring will ensure compliance

with appropriate discharge standards. 17

18 Environmental Impact/Issue Mitigation Measures Location Time Frame Responsibility Implementation Supervision Appendix (ii) The wastewater discharge from the WWTPs will conform to the relevant discharge standards. 2. District Heating (i) Stacks of the designed boilers will be 80–100 m high District heating boilers Operation IA EPBs to minimize direct impact to adjacent areas. (ii) Electro or wet precipitators will be installed and will be

at 95% efficient. (iii) Flue gas desulfurization equipment will be installed and will be at least 85% efficient. (iv) Dust suppression activities will be conducted, such as spraying water on coal and fly-ash, covering coal stockyards, to minimize the dispersion of airborne dust during coal and fly-ash offloading, stockpiling, and handling in the plants. (v) Contamination of groundwater from fly-ash stockyards will be minimized by installation of clay or synthetic liners. (vi) Water conservation will be prioritized by recycling wastewaters from wet fly-ash disposal and coal spraying. (vii) Noise mitigation measures will be adopted, including soundproof covers and walls in the plants (viii) Air emissions from the boilers will comply with “Emission Standards for Coal-fired, Oil-fired and Gas-fired Boilers” (GB13271-2001). 3. Natural Gas Distribution (i) Domestic wastewater from NGS stations will be Natural gas distribution Operation IA EPBs treated by septic tank and then discharged into a pipelines municipal sewer or used for watering trees and grass. (ii) Noise will be minimized by installing low-noise equipment and planting trees around the stations. (iii) Gas leakage monitoring will be conducted regularly at the stations and along the pipeline alignment. (iv) Revegetation will be inspected along the pipeline routes for at least 3 years after completion of construction. EMU = environmental management unit, EPB = environmental protection bureau, IA = implementing agency, IMAR = Inner Mongolia Autonomous Region, WENNR = Western Erdos National Natural Reserve, WWTP = wastewater treatment plant.