INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA5535

Public Disclosure Authorized Date ISDS Prepared/Updated: 06-Nov-2013 Date ISDS Approved/Disclosed: 06-Nov-2013 I. BASIC INFORMATION

Public Disclosure Copy 1. Basic Project Data

Country: Project ID: P133531 Project Name: Gas Utilization (P133531) Task Team Ximing Peng Leader: Estimated 10-Oct-2013 Estimated 06-Mar-2014

Public Disclosure Authorized Appraisal Date: Board Date: Managing Unit: EASCS Lending Investment Project Financing Instrument: Sector(s): Oil and gas (60%), Thermal Power Generation (40%) Theme(s): Climate change (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 272.90 Total Bank Financing: 100.00 Financing Gap: 0.00

Public Disclosure Authorized Financing Source Amount Borrower 54.60 International Bank for Reconstruction and Development 100.00 Local Sources of Borrowing Country 118.30 Public Disclosure Copy Total 272.90 Environmental A - Full Assessment Category: Is this a No Repeater project?

2. Project Development Objective(s) Public Disclosure Authorized The proposed Project Development Objective (PDO) would be to increase gas utilization to reduce greenhouse gases emission in selected counties of Shanxi province. The proposed project would be part of the provincial gasification program and the objective would be achieved by the investment in

Page 1 of 13 both distributed gas-fired combined heat and power (CHP) and the expansion of the gas distribution network in selected counties. 3. Project Description The proposed project has three components: (a) distributed gas-fired CHP; (b) expansion of gas distribution network; and (c) technical assistance. Total six investment sub-projects are included in the project based on their locations – Baode and Xiyang gas-fired CHP sub-project under Component (a), and Xiangyuan, , Tunliu and Qingxu gas distribution sub-project under Component (b) – these sub-projects are located in six different counties in Shanxi province. Component 1: Distributed Gas-fired CHPs (indicative cost estimate: US$237.60, of which US$ 79.25 Public Disclosure Copy from IBRD loan). This component includes two investment sub-projects with the same size: Baode 3x42MW and Xiyang 3x42MW gas-fired CHP plants and affiliated facilities. Both sub-projects are green-field power plants and will be built for power generation and heating supply to the adjacent county level cities (Baode and Xiyang County City). The gas source of both sub-projects is the provincial gas network which has been extended to both cities, and the provincial gas network is operated by Shanxi Natural Gas Company (SNGC), who is also the implementing agency of both sub-projects. The annual gas consumption is estimated at 285 million cubic meters for both sub-projects. The electricity will be delivered to the provincial power grid, an estimate of about 1,160 GWh annually, to meet the electricity demand in the province; while the heating will be supplied to the two county cities to meet the expanded heating demand of total floor area of about 2.37 million square meters. SNGC plans to start the construction of both investment sub-projects in April 2014 and complete the construction in October 2015. Component 2: Expansion of Gas Distribution Network (indicative cost estimate: US$32.25 million, of which US$18 million from IBRD loan). This component included four investment sub-projects located in four county cities, namely Xiangyuan, Changzhi, Tunliu and . The proposed sub-projects would install pipelines and pressure regulating stations in the four counties to expand the gas distribution network to residential, commercial and industrial consumers, as well as the establishment of SCADA systems to monitor the operation of each gas distribution network. The main gas source is the provincial gas network, operated by SNGC, though the gas for Changzhi sub-project is to be supplied by a local CBM developer which is also connected into the provincial gas network. The proposed four sub-projects are expected to meet the incremental gas demand in the four cities by 2030, amounted to total 136,700 households and 21 industrial consumers, with an annual gas supply of about 244.15 million cubic meters. The project implementing agencies plan to start the construction of all four sub-projects in October 2014, and complete the construction in late 2019.

Public Disclosure Copy Component 3: Technical Assistance (indicative cost estimate: US$2.75 million, financed from IBRD loan). Technical assistance component is included to mitigate the risks related to project design and management, covering activities for capacity building and technical support to the implementing agencies, and activities to upgrade the provincial gas network system. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The proposed Project consists of six subprojects, which include two distributed gas-fired CHP subprojects, and four gas distribution subprojects. The two distributed gas-fired CHP subprojects are located in Baode County, Municipality and Xiyang County, Municipality. The four gas distribution subprojects are located in Xiangyuan, Changzhi, Tunliu, and Qingxu Counties with first three counties located in Changzhi Municipality and the remaining one in Jinzhong Municipality.

Page 2 of 13 Shanxi Province is located on the Loess Plateau with a rolling terrain. Shanxi has a complex landform formed with a variety of mountains, low hills, plateaus, basins and terraces. As the province of Shanxi extends along a narrow area, which slopes from north to south, between the Yellow River and Taihang Mountains, the mountain area accounts for over 70% of the total area of Shanxi Province. The groundwater layers are very deep even in the alluvial areas the drilling exercise shows that the shallow aquifer is more than 30 m. The temperate continental climate dominates in Shanxi province. The annual precipitation averages 400 mm-600 mm with 60% being distributed within the period from June to August. 5. Environmental and Social Safeguards Specialists

Public Disclosure Copy Youxuan Zhu (EASCS) Yiren Feng (EASCS)

6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The project involves two distributed gas-fired BP 4.01 CHP plants (3x42MW each) for power generation and heating supply to the adjacent county cities, and expansion of gas distribution network in four cities.

The proposed project will facilitate the gas utilization in Shanxi Province, which will have significant environmental benefits including replacement of coal consumption and reduction of pollutants discharge. The potential adverse impacts such as dust, wastewater, solid waste, noise, soil erosion and social impacts will occur during construction phase, and NOx emission, noise, wastewater from gas-fired CHP plant, and potential risks related to fire and explosion during operation phase. The relevant mitigation measures were incorporated into the EIA/EMP. The project was classified as Category A project due to its potential impacts and risks.

Public Disclosure Copy An Environmental Impact Assessment (EIA) including Environmental Management Plan (EMP) and an EA Summary Report have been prepared by the project implementing agencies. To enhance the environmental benefits of the project, the project has integrated the mitigation measures into the project design, construction phase and operational phase respectively. These environmental and social impacts are thoroughly analyzed in the EIAs, and preventive and mitigation measures have been developed in the EMPs. Bank review has concluded that these adverse environmental and social impacts can be

Page 3 of 13 adequately avoided, minimized and mitigated with good management practice and mitigation measures, as developed in the EIAs/EMPs. Two rounds of public consultations including expert consultations, questionnaires, symposia, and interviews were conducted with the different stakeholders during EA preparation according to the requirements of both Chinese legislations and the World Bank’s OP 4.01. The project

Public Disclosure Copy information has been disclosed locally throughout the public consultation process. The availability of the EIA reports, and how to access to them, was announced in local major newspaper of each project county in early August 2013, and EIAs/ EMPs were also disclosed at Shanxi Economy Daily on August 6, 2013. The EA report was also disclosed on the website of GXED on October 3, 2013, and the World Bank’s InfoShop on November 6, 2013.

Natural Habitats OP/BP 4.04 No Based on the information available and site visit, there are not any natural habitats or critical natural habitats found in the proposed project areas, all the project components locate in the urban or town areas. The rivers to be crossed by the pipelines are considered sensitive receptors for the concern of flood protection safety reason as required by China's EA requirements. The rivers, as described in the EA, have no flow in most months of a year, and the local authorities confirmed that there are no rare species in the river. Forests OP/BP 4.36 No While the project will affect 90 mu of woods (1,800 poplar trees) land which is scattered along Public Disclosure Copy the pipeline in small plots of trees and are artificially planted trees, the area affected is insignificant (very small percentage) and there are no communities dependent on the 90 mu reforestation area.

Project activities will not affect forest areas. It will not involve any logging or planting activities in forest areas.

Pest Management OP 4.09 No The project will not procure pesticides or increase use of pesticides.

Page 4 of 13 Physical Cultural Resources OP/ Yes The whole territory of Baode County - project BP 4.11 site of one gas-fired CHP sub-project - has been classified into the Vertebrate Fossil Area protected at provincial level, and Baode CHP plant will be located in the protection area of Diaoyutai Rock Cave protected at municipal level. Adequate site survey and consultation with relevant stakeholders was conducted during EA Public Disclosure Copy preparation to ensure all the relevant cultural relics are identified, and the potential impacts were carefully addressed through project design, construction technologies, good construction management and other mitigation measures. Chance-find procedures include provisions and procedures stipulated in the Cultural Property Law and will be included in the bidding documents and contracts. The site of Baode CHP plant is 11.3 km from the core area of the Vertebrate Fossil Area and 500 meters from the Diaoyutai Rock Cave; and the water supply pipeline will be constructed along the existing highway G249 with the closest distance to the cave at 20 meters. The EA report concluded that the vibration impact on the Diaoyutai Rock Cave is negligible, and the impact of dust and vibration to the cave is also minor as the water supply pipeline is small which require only small quantity of earth work. In addition, a Physical Cultural Resources Management Plan has been prepared as part of the EIA/EMP, which includes the mitigation measures, institutional strengthening, the procedure of Chance Find that will be applied

Public Disclosure Copy throughout the construction stage of Baode CHP plant and its associated works, and monitoring plan.

Indigenous Peoples OP/BP 4.10 No A social assessment has been carried for all project components, which was based on consultations with officials from local minority and religious bureau in each county and relevant town governments in order to obtain information regarding minority population in relevant counties and project areas. Similar consultations were also conducted for the sample villages and residential committee interviews for the four gas

Page 5 of 13 distribution subprojects. According to the findings the social assessment, there are no ethnic minority communities in the project affected areas. The policy of OP/BP 4.10 will not be triggered. Involuntary Resettlement OP/BP Yes The construction of the Project will involve 4.12 certain amount of land acquisition and resettlement, but house demolition will not be involved. The two distributed gas-fired CHP Public Disclosure Copy plants will require both permanent and temporary land acquisition for the plant site, access roads and transmission towers, and the four gas distribution sub-projects will require temporary land occupation only. Total land acquisition includes 220 mu permanent rural land for the sites of the two CHP plants, and 3,501 mu temporary lands. Total affected household amounts to 1,245 in the six project cities. To address the impacts, a resettlement action plan (RAP) has been prepared in accordance with relevant Chinese laws, regulations, and World Bank Operational Policy (OP4.12), disclosed locally on Sep. 2, 2013 and in InfoShop (disclosed on Sep. 3, 2013). The proposed compensation standards for both permanent and temporary land acquisition are in line with those policies which have been implemented in those cities/counties and generally acceptable to local villagers and residents. Given the changing nature of gas distribution component, a resettlement policy framework (RPF) has also been prepared for activities whose locations and scope might be determined during project implementation. The RPF follows the

Public Disclosure Copy same compensation policies for relevant cities or counties and defines procedures and steps for RAP preparation and grievance procedures. Public consultations had been conducted during RAP/RPF preparation including both social economic survey and public meetings with project affected people. Information about the project impacts, compensation policies, rehabilitation options and grievance procedures have been provided to the affected people through distribution of resettlement information booklet to affected villages. Group discussions with the affected people were also conducted to collect

Page 6 of 13 their views and preferences regarding resettlement impacts, compensation policies, and rehabilitation measures. These views and preferences have been taken into account during RAP preparation process. Implementation of the RAP/RPF and its monitoring were also agreed. The project implementing agencies will lead resettlement operations under the oversight of the resettlement

Public Disclosure Copy leading groups in project cities and counties. An experienced external monitoring agency will be contracted to conduct independent monitoring and evaluation over the course of the project implementation. The monitoring results will be reported twice a year and, if needed, remedial actions will be designed.

Safety of Dams OP/BP 4.37 No For the distributed gas-fired power plants in both Gaode and Xiyang County, the plants will use the effluent (further treated) from existing waste water treatment plants nearby as cooling water. The options to use water from nearby a dam were rejected during the preparation of feasibility study reports. Projects on International No No subproject will be located in international Waterways OP/BP 7.50 waterways. The policy is not triggered and no actions are required. Projects in Disputed Areas OP/BP No No project area will be located in disputed areas. 7.60 The policy is not triggered and no actions are required.

II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues

Public Disclosure Copy 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project will bring significant net positive environmental benefits through facilitating the gas utilization and displace of coal use in Shanxi Province, which will have significant environmental benefits including replacement of coal consumption and reduction of pollutants discharge.

The potential adverse impacts such as dust, wastewater, solid waste, noise, soil erosion and social impacts will occur during construction phase, and potential risks related to fire and explosion during operation phase. The relevant mitigation measures were incorporated into the EIA/EMP. The air pollutant of primary concern in the operation stage of CHP plants is NOx. A steady-state dispersion model recommended in the EA Technical Guideline for Ambient Air (HJ2.2-2008) issued by the Ministry of Environmental Protection is used to predict the NOx concentration distribution within the assessment area. The modeling results show that the Max. hourly

Page 7 of 13 concentration of NOx for Baode CHP plant is 572.8397 μg/m3 on a disused land 1340 m WNW from the stack; for Xiyang CHP plant is 379.7832μg/m3 on a disused land 1780 m SE from the stack. The Max. daily and Max. yearly concentrations of NOx in the assessment area and the sensitive receptors comply with the required standard.

Beijing Dafei Risk Assessment Company has been contracted to prepare the Risk Assessment Report for domestic approval. The procedure for risk assessment required by risk assessment guideline of China has been followed. In the risk screening procedure, the potential risks associated with the CHP plants and gas pipelines have been identified respectively to be occupational damages, and leakage of pipelines due to the quality control problem in construction Public Disclosure Copy stage; The guideline only identifies the gas storage tank with a volume of over 10 tons, and the larger gas pipelines within public areas rather than within plant boundary, as well as the bigger waste gas boilers, as the critical sources of risk in operation phase. The critical sources for the risks are the waste gas boilers under the CHP components and the gas pipeline with DN more than 200 mm under the gas network components. The probabilities of the risks and the radius of buffer area have been estimated. Based on the layout of the CHP plants and the alignments of the gas pipelines under the pipeline network components, the aftermath of the risks have been estimated also.

The whole territory of Baode County has been classified into the Vertebrate Fossil Area protected at provincial level and the Baode CHP plant will be located in the protection area of Diaoyutai Rock Cave protected at municipal level. The Physical Cultural Resources (PCR) policy is therefore triggered.

Baode CHP plant is 11.3 km from the core area of the Vertebrate Fossil Area and 500 m from the Diaoyutai Rock Cave, the water supply pipeline will be constructed along the existing highway G249 with the closest distance to the cave at 20 m. during the construction of Baode CHP plant, it is concluded that the vibration impact on the Diaoyutai Rock Cave is negligible. As the water supply pipeline is small requiring small quantity of earth work, the impact of dust and vibration is also minor. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Shanxi Province has developed an ambitious target for air pollution reduction through its 12th Five Year Plan (2011-2015) for Environmental Protection. In response to the Plan, a series of action plans have been initiated including the Shanxi Provincial Gasification Program. The Public Disclosure Copy proposed project is an integral part of the Shanxi Provincial Gasification Program. Based on the feasibility study reports, it is expected that the project would contribute to the reduction of TSP 13,700 tons/year (t/a), SO2 15,100 t/a, and CO2 emission 1.5 million t/a. It will make great contribution to the air quality improvement in the project cities in Shanxi Province. The experience and practices to be summarized in the project design and implementation are expected to be replicated in other areas of Shanxi province. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The project has been subject to intense analysis of alternative options. During the design phase the EA teams worked closely with project planners/ owners and the feasibility study teams to compare and evaluate alternatives. The EA identified, evaluated and compared various options for pipeline alignment selection, CHP plant location selection, fuel type selection, NOx Control technology, cooling water source and its treatment process, and optimal alternatives were selected based on the

Page 8 of 13 avoidance of (or least adverse) social and environmental impacts, as well as other engineering technology, and financial considerations for least cost solutions. A “no project” scenario was also considered as an alternative. Adequate engineering measures have been designed to mitigate the expected impacts, including noise reduction equipment, intensive greening plan etc.

As the result, the pipeline alignment, CHP locations were optimized so as to reduce the land acquisition, decrease construction risks, minimize resettlement, avoid environmental sensitive sites, and with less cost. Further optimization will be conducted during preliminary design and detailed design. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an Public Disclosure Copy assessment of borrower capacity to plan and implement the measures described. The project was classified as a Category A project as per OP4.01 due to its potential impacts and risks. Environment Assessment (EA) reports were prepared by the EA consultant (Coal Chemistry Institute of China Academy of Sciences) hired by GXED in accordance with relevant national laws, regulations, and technical guidelines and standards applicable to the project, as well as the World Bank Safeguards Policies. The reports include an EA Executive Summary, and EIA and Environmental Management Plan (EMP) reports for each investment sub-project. The EA Report has incorporated the Bank’s comments, and found to be satisfactory. The potential environmental and social impacts of the proposed project are thoroughly addressed in the EIA report, and necessary mitigation measures have been developed in the EMP. It is concluded that these adverse environmental and social impacts can be adequately avoided, minimized and mitigated with good management practice and mitigation measures as developed in EIA/EMP. The main conclusions of impacts and mitigation measures are summarized as follows:

Project Feasibility Study and Design. During the design phase the EA teams worked closely with project planners/ owners and the feasibility study teams to compare and evaluate alternatives. The EA identified, evaluated and compared various options for pipeline alignment selection, CHP plant location selection, fuel type selection, NOx Control technology, cooling water source and its treatment process, and optimal alternatives were selected based on the avoidance of (or least adverse) social and environmental impacts, as well as other engineering technology, and financial considerations for least cost solutions. A “no project” scenario was also considered as an alternative. Adequate engineering measures have been designed to mitigate the expected impacts, including noise reduction equipment, intensive greening plan etc.

Construction phase. To address the potential adverse impacts such as dust, wastewater, solid Public Disclosure Copy waste, noise, soil erosion and social impacts during construction phase, preventive and mitigation measures have been developed in the EMP to adequately avoid, minimize and mitigate these adverse environmental and social impacts. These impacts will be avoided, minimized or mitigated by the following measures, it includes but not limit to: implementation of soil and water conservation plan, public consultation throughout the construction period to address public concerns and improve construction activities, proper management of solid wastes, careful scheduling of construction activities; restricting night-time construction; use of advanced construction technologies such as directional drilling and pipe-jacking technique; Measures for air and wastewater pollutant control, risks assessment and Environmental, Health and Safety (EHS) measures etc.

Operation phase. To address potential impacts during operation phase, a number of mitigation measures were adopted. They include but are not limited to: use of low noise equipment,

Page 9 of 13 installation of noise barrier, installation of low noise silencer, vibration-reduction facilities will be installed, collection and treatment of wastewater, and solid waste, EHS measures, implementation of safety management plan, monitoring of waste gas, wastewater and noise regularly etc.

Safety Management Plan. A Safety Management Plan has been prepared to cope with these potential risks which include the institutional arrangement, mitigation measures and management system, emergency response plan, training plan, community awareness and education program and monitoring plan.

Physical Cultural Resources OP/BP 4.11: Adequate site survey and consultation with relevant Public Disclosure Copy stakeholders was conducted during EA preparation to ensure all the relevant cultural relics are identified, and the potential impacts were carefully addressed through project design, construction technologies, good construction management and other mitigation measures. Chance-find procedures will include provisions and procedures stipulated in the Cultural Property Law and will be included in bidding documents and contracts. Baode CHP plant is 11.3 km from the core area of the Vertebrate Fossil Area and 500 m from the Diaoyutai Rock Cave, the water supply pipeline will be constructed along the existing highway G249 with the closest distance to the cave at 20 m. during the construction of Baode CHP plant, it is concluded that the vibration impact on the Diaoyutai Rock Cave is negligible. As the water supply pipeline is small requiring small quantity of earth work, the impact of dust and vibration is also minor.

In addition, A Physical Cultural Resources Management Plan has been prepared as part of EIA/ EMP which includes the mitigation measures, institutional strengthening, the procedure of Chance Find will be applied throughout the construction stage of Baode CHP plant and its associated works, and monitoring plan. The compensation for the relocation of the tombs has been considered in the RAP.

A stand-alone EMP has been developed which details the policy bases, applicable environmental standards, environmental management organization and responsibilities, sufficient mitigation measures, capacity training plan, environmental monitoring program, and budget estimates of EMP implementation. The EMP measures were developed in consistency with World Bank Group EHS Guidelines. The EMP measures will be incorporated into bidding documents and contracts in order to ensure effective implementation.

Environmental management responsibility will be built into the relevant divisions of the overall Public Disclosure Copy project management structure, with dedicated management staff to ensure effective EMP implementation. A training plan will be implemented prior to/and during construction for project management staff, technical staff and Contractors.

ECOPs and site-specific management plan, as well as the soil conservation plan have been developed and incorporated into the EIA and the EMP. An environmental monitoring plan and soil conservation monitoring plan have been designed for both construction and operation phases of the project, and are incorporated into the EMP, which includes the monitoring location, monitoring parameters, methods, frequency and cost estimate. Environmental monitoring report will provide key and timely information, especially on environmental impacts and mitigation, to the borrower and the Bank to evaluate the success of environmental management.

The project is to be implemented by Shanxi Guoxin Energy Development Group Corporation (GXED) and its three subsidiaries (Shanxi Natural Gas Company, Shanxi CBM (NG) Pipeline and

Page 10 of 13 Transportation Company, and Qingxu Kaitong Natural Gas Company). A Project Management Office (PMO) has been established, led by GXED and participated by its three subsidiaries, to be responsible for the coordination of the project preparation and implementation. GXED and its subsidiaries have no experience with Bank funded projects.

In order to effectively address the environmental issues, the Institute of Coal Chemistry of Chinese Academy of Sciences has been selected to prepare the EA document for the project. The institute has rich experience on the preparation of EA for the similar projects including gas-fired power plant. The Bank mission provided them with guidance on the World Bank Safeguard Policies. For land acquisition and resettlement impact, an experienced agency – Institute of Sociology of Shanxi Public Disclosure Copy Academy Social Science has been selected to prepare resettlement action plan for the project. The Bank’s social and environmental specialists will work closely with the PMO and its consultants to address the potential impacts and formulation of mitigation measures during the preparation and implementation of the project, the capacity building for safeguard will be integrate part of the project implementation. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Two rounds of public consultation were conducted by the EIA team during EA preparation. The first round was conducted from April to July 2013 through meetings, field interviews and questionnaire surveys among project affected people, experts and relevant key stakeholders, and focused on environmental screening to define public concerns, to assist identification of key environmental issues and to draw public response and comments on the initially developed mitigation measures for the potential adverse impacts identified before EA TOR finalization. The main concerns raised by the public are resettlement compensation, construction related impacts, safety of gas use, and affordability issue etc. All these concerns were addressed in the RAP and EIA/EMP.

The second round was conducted in August 2013 after the draft EIA report had been prepared. During the consultation, the key findings of draft EIA report and proposed mitigation measures were explained, as well as the responses to the questions raised from the first round consultation.

Through the consultation, it is understood that the public strongly support the project as they think it would be a good approach to improve the air quality and livelihood. Responding to the public consultation, the public concerns have been carefully considered in the impact assessment and development of mitigation measures. As a result, the public who raised the concerns are satisfied Public Disclosure Copy with the conclusion and mitigation measures.

In accordance with the OP 4.11, the relevant government departments and experts have been consulted as a part of the public consultation. The relevant departments have confirmed the significance of the Diaoyutai Rock Cave and the Baode County Vertebrate Fossil Area and agreed the location of the Baode CHP Plant, and required that the chance find procedure be included in the mitigation measures. During the second-round consultation, these relevant departments and experts are satisfied with the physical cultural resources management plan.

The project information has been disclosed to the public throughout the public consultation. The availability of the EA reports, and how to access to them, was announced in local major newspaper of each project county in early August 2013, and EIA/EMP was also disclosed at

Page 11 of 13 Shanxi Economy Daily on August 6, 2013. The EA report has been disclosed on the website of GXED on October 3, 2013, as well as on the World Bank’s Infoshop on November 6, 2013. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 11-Oct-2013 Date of submission to InfoShop 06-Nov-2013 For category A projects, date of distributing the Executive 06-Nov-2013 Summary of the EA to the Executive Directors

Public Disclosure Copy "In country" Disclosure China 03-Oct-2013 Comments: Project information has been disclosed to the public throughout the public consultation process. The availability of the EA reports, and how to access to them, was announced in a major local newspaper in each project county in early August 2013. The EIA/EMP was also disclosed in the Shanxi Economy Daily on August 6, 2013. The EA report was further also disclosed on the website of GXED on October 3, 2013 and through the World Bank’s Infoshop on November 6, 2013. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 16-Oct-2013 Date of submission to InfoShop 06-Nov-2013 "In country" Disclosure China 06-Oct-2013 Comments: To address these impacts, a resettlement action plan (RAP) has been prepared in accordance with relevant Chinese laws and regulations and World Bank Operational Policy (OP4.12), disclosed locally on October 6, 2013 and through the World Bank’s InfoShop on November 6, 2013. If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why:

Public Disclosure Copy C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property?

Page 12 of 13 Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan?

Public Disclosure Copy The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents?

III. APPROVALS Task Team Leader: Name: Ximing Peng Approved By Regional Safeguards Name: Josefo Tuyor (RSA) Date: 06-Nov-2013 Public Disclosure Copy Advisor: Sector Manager: Name: Mark R. Lundell (SM) Date: 06-Nov-2013

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