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Initial Environmental Examination

Project Number: 52007-001 February 2021

People’s Republic of China: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program- Lankao County Cleaner Fuel Switch Subproject

Prepared by the Yu-Tian New Energy Co. Ltd for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 1 December 2020) Currency unit - yuan (CNY) CNY1.00 = US$ 0.1520 US$1.00 = CNY 6.5769

ABBREVIATIONS ADB Asian Development Bank AP Affected Person AQI Air Quality Index EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMA Environmental Monitoring Agency EMoP Environmental Monitoring Plan EMP Environmental Management Plan EPB Environmental Protection Bureau EPL Environmental Protection Law FSR Feasibility Study Report GDP Gross Domestic Product GHG Green House Gas GIP Good International Practice GIIP Good International Industrial Practice GRM Grievance Redress Mechanism IA Implementing Agency IEE Initial Environmental Examination I&G China National Investment and Guaranty Corporation IT Interim Target MAC Maximum Acceptable Concentration MEE Ministry of Ecology and Environment MEP Ministry of Environmental Protection PCR Physical Cultural Resources PIU Project implementation unit PPE Personnel Protective Equipment PRC People’s Republic of China SPS Safeguard Policy Statement, ADB WB World Bank WHO World Health Organization WWTP Wastewater treatment plant YTNEC Yu-Tian New Energy Co. Ltd ZYIHG Zhoungyuan Yuzi Investment Holding Group

WEIGHTS AND MEASURES

BOD5 Biochemical Oxygen Demand, five days

CaCO3 Calcium Carbonate cm Centimeter

CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen kg Kilogram km Kilometer kWh Kilowatt Hour Leq Equivalent Continuous Noise Level m Meter m/s Meters per Second m2 Square Meters m³ Cubic Meters mg/l Milligrams per Liter mg/m3 Milligrams per Cubic Meter µg/m3 Micrograms per Cubic Meter

NOx Nitrogen Oxides oC Degrees Celsius

O3 Ozone pH A measure of the acidity or alkalinity of a solution PM Particulate Matter

PM10 Particulate Matter smaller than 10 micrometers

PM2.5 Particulate Matter smaller than 2.5 micrometers

SO2 Sulfur Dioxide t/h Tons per Hour TSP Total Suspended Particulates

NOTES

(i) In this report, "$" refers to US dollars and "€" refers to Euro. (ii) This document has been prepared following ADB’s Safeguard Policy Statement 2009.

This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of the ADB website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Table of Contents

EXECUTIVE SUMMARY ...... 1 A. Introduction ...... 1 B. Environmental Baseline ...... 2 C. Anticipated Impacts and Mitigation Measures ...... 3 D. Public Consultation and Grievance Redress Mechanism ...... 3 E. Environmental Management Plan ...... 4 F. Risks and Assurances ...... 4 G. Conclusion ...... 4 I. INTRODUCTION...... 5 A. The Project ...... 5 B. Report Purpose ...... 6 C. Approach to Report Preparation ...... 6 D. Report Structure ...... 6 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 8 A. Overview ...... 8 B. PRC Environmental Laws, Regulations, Guidelines, and Standards...... 8 C. International Agreements ...... 11 D. Applicable ADB Polices and World Bank’s EHS Guidelines ...... 11 E. Assessment Standards for Proposed Project Components ...... 12 F. Applicable Requirements of Protection Zone ...... 16 G. Domestic EIA Preparation and Approval ...... 16 III. DESCRIPTION OF THE PROJECT ...... 17 A. Rationale ...... 17 B. Project Description ...... 19 C. Associated and Existing Facilities ...... 30 IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) ...... 31 A. Location and Setting ...... 31 B. Henan Province Overview ...... 31 C. Topography and Geology ...... 32 D. Climate ...... 33 E. Ecological Values ...... 35 F. Social and Economic Conditions ...... 36 G. Environmental quality ...... 36 V. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 42 A. Project Area of Influence and Sensitive Receptors ...... 42 B. Pre-construction Phase ...... 49 C. Construction Phase ...... 50 D. Operation Phase ...... 58 E. Anticipated Positive Operation Phase Impacts ...... 59 VI. ALTERNATIVE ANALYSIS ...... 61 A. No Project Alternative ...... 61 B. Alternative Methods of Pipeline Installation ...... 62 C. Pipeline Network ...... 62 D. Overall Alternative Analysis ...... 63 VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ...... 64 A. PRC Requirements ...... 64 B. ADB Requirements ...... 64 A. Information Disclosure ...... 65 B. Public Consultation ...... 66 C. Future Information Disclosure and Public Consultation Program ...... 69 VIII. GRIEVANCE REDRESS MECHANISM ...... 70 IX. PROJECT ASSURANCES ...... 74

X. CONCLUSION ...... 75 APPENDIX 1. ENVIRONMENTAL MANAGEMENT PLAN ...... 76 A. Objectives ...... 76 B. Organizations and Their Responsibilities for EMP Implementation ...... 76 C. Potential Impacts and Mitigation Measures ...... 78 D. Environmental Monitoring, Inspection and Reporting ...... 87 E. Training and Capacity Building ...... 90 F. Public Consultation and Awareness Raising ...... 92 G. Performance Indicators ...... 92 H. Cost Estimates ...... 93 I. Mechanisms for Feedback and Adjustment ...... 95 APPENDIX 2. COVID 19 – PROJECT HEALTH & SAFETY PLAN (DRAFT GUIDELINES) ...... 96

Legend

DN 160 medium pressure pipeline DN 63 medium pressure pipeline

DN 200 medium pressure pipeline DN 110 medium pressure pipeline Existing pipeline DN 90 medium pressure pipeline

Map 1: Location of Proposed Subproject

EXECUTIVE SUMMARY A. Introduction

1. This initial environmental examination (IEE), including an environmental management plan (EMP), is prepared for the proposed Lankao County cleaner fuel switch subproject of the Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program (the Program) in Henan Province of the People’s Republic of China (PRC). The program adopts ADB’s result-based lending (RBL) modality. ADB’s RBL program will support the financing of the program for the time- slice of 2019–2023 in the overall investment program for 2019–2030. The Program will support the Government’s objectives as outlined in the Three-Year Action Plan to Win Blue Sky War (2018–2020), issued in June 2018. The Action Plan includes policy actions to accelerate (i) closing of heavily polluting industries; (ii) reduce surplus production capacity in industries; (iii) shift to less air polluting transportation modes; and, (iv) build cleaner and less air polluting energy systems to reduce air pollutant emissions by more than 15% for NOx and SO2, and more than 18% for PM2.5 by 2020 as compared with the emissions level in 2015. In 2018 the provincial government also issued the Three-Year Action Plan for Henan Province to Combat Blue Sky War (2018–2020), which targeted to (i) reduce annual average PM2.5 to 58 μg/m3 by 2020; and, (ii) achieve the annual average national air quality category II standard of 35 μg/m3 by 2023.

2. The Program will support the transition from coal to cleaner fuel for residential, commercial, and industrial users in selected less developed counties of Henan Province, thereby reducing a major source of air pollution in the greater BTH region. The program will have four outputs:

Output 1: Clean gas network systems expanded. The program will construct natural gas network systems including medium and low-pressure small diameter transmission and distribution pipelines (26,880 km) and 12 regulatory and storage substations, together supplying 316.63 million Nm3 of clean gas to 1.2 million customers by 2023, thereby replacing existing old and polluting coal burning facilities.

Output 2: Alternative clean fuel developed. The program will develop 1.7 million m3 of annual biogas production capacity using the first utility scale dry fermentation process, utilizing agricultural crop and livestock waste sourced from and readily available in the target counties. Since burning agriculture waste is a direct source of particulate matter, and ammonia (NH3) from the livestock waste transforms particulate matter when it reacts with SO2 and NOx, the approach aims not only to develop locally available alternative fuel but to also reduce direct particulate emission to the air by treating agriculture and livestock wastes.

Output 3: Cleaner fuel use awareness enhanced. The program will help change end-user’s traditional energy use, and enhance awareness about cleaner fuel use and safety, with special attention to gender impacts such as improved health outcomes and reduced time for preparation of household energy.

Output 4: Institutional building and capacity enhancement. The program will support institutional and capacity enhancement by (i) upgrading information and management system, (ii) strengthening financial and credit risk management, (iii) unlocking an access to commercial financing, and (iv) increasing IA staffing with gender targets, for sustainable overall program implementation towards 2030.

3. The program scope during 2019–2023 covers (i) expanding gas network systems including distribution pipelines (26,880 km) and gas stations, thereby replacing the old coal burning facilities; (ii) developing 17 million Nm3 annual production capacity of pilot biogas plant facilities, which can be sourced from wastes from agricultural crops; (iii) strengthening the institutional capacity of

Zhongyuan Yuzi Investment Holding Group (ZYIG) and China Tian Lun Gas Holding Limited (CTLG) to raise the additional funding needed to complete the cleaner fuel switch investment program by 2030; and (iv) enhancing awareness about safety of cleaner fuel use and indoor air pollution reduction among the gas end users, with special attention to gender impacts. The project is aligned with national and provincial development plans and the Asian Development Bank’s (ADB) country partnership strategy for the PRC, 2016–2020.

4. The Henan Provincial Government will be the executing agency (EA) and will have overall responsibility for the program. The IA will be the Zhongyuan Yuzi Investment Holding Group (ZYIHG), a state owned enterprise (SOE) under the Henan Provincial Finance Bureau, who will be responsible for implementing and monitoring the activities in the program through the Yu-Tian New Energy Company (YTNE), a joint venture between ZYIHG and the private China Tian Lun Gas Holding Limited (CTLG). A program coordination committee comprised of ZYIHG, YTNE, Provincial Development and Reform Commission, Provincial Finance Bureau, and other relevant provincial government agencies, will be established to provide oversight and strategic guidance in implementing the program. Lankao Subcomany of YTNEC will be the project implementation unit (PIU) of the subproject.

5. The subproject will (i) install 161.91 km medium pressure pipelines to transfer gas to 13 towns and townships including Guying Town, Kaocheng Town, Guyang Town, Hongmiao Town, Nanzhang Town, Mengzhai Township, Xiaoxong Township, Batou Township, Sanyizhai Township, Yifeng Township, Xuhe Township, Putaojia Township and Yanlou Township of Lankao County ; (ii) install 119.90 km medium pressure pipelines (to regulation boxes) and 1,747.90 km low pressure pipelines (from regulation boxes to households) within the 13 towns and townships to transfer gas to 68,460 households; and (iii) improve the cleaner fuel use awareness in Lankao County. Under ADB’s Safeguard Policy Statement (SPS 2009), the subproject is classified as Category B for the environment. This IEE has been prepared following the requirements of the SPS and procedures of the PRC. It is based upon the domestic tabular environmental impact report (EIT), domestic feasibility study report, site visits by the consultant team engaged by YTNE, and secondary information sources.

B. Environmental Baseline

6. Lankao County has an area of 1,116 km2 and a population of 859,100. Lankao County has 5 towns, 8 townships and 3 streets. Lankao County belongs to Kaifeng City and is a county administrated by Henan Province. Lankao County is located at the northeast of Henan Province.

7. Baseline surveys, through sampling and analysis, were conducted for establishing baseline conditions for surface water quality, groundwater quality, and noise and air quality. Surface water quality near the project sites can’t meet the national standards because the domestic wastewater and rural sewerage discharged into surface water bodies without prior treatment did not comply with the wastewater discharge standards. Groundwater quality monitoring data near the project sites met Grade III of the PRC’s Groundwater Quality Standard of GB/T14848-2017. Ambient air in Lankao County can’t comply with the relevant national standards. Noise quality in Lankao County comply with the relevant national standards.

8. Lankao County is located at the south of Yellow River. Due to the diversion of the Yellow River in the past, the original vegetation in Lankao County was removed and the main vegetation in Lankao County was secondary vegetation. Woody plant in Lankao consists of more than 30 species including paulownia, elm, willow, robinia pseudoacacia etc. Lankao is famous as hometown of paulownia. Shrubs in Lankao County consist of periploca sepium bunge, tamarix chinensis, amorpha fruticose. Herbaceous plant consists of cultivated plants including corn, wheat, soybean, cotton and

3 peanut and wild plants. Wild plants in Lankao County consist of 33 families and 147 species and most of which are grass plants. Fauna consists of more than 300 species of animals, including weasel, owl, snake, hedgehog, hare. There are Class I national protected rare animals (e.g., great bustard, siamese crocodile) and Class II national protected area rare animals (e.g., raccoon, giant salamanders, kestrel, otus scops, short-eared owl) and Class III national protected area rare animals (e.g., Chinese pond-heron, egret, grey heron, cattle egret) in Lankao County.

9. The pipeline of the subproject is located within the residential area and agricultural area. No cultural heritage or archaeological sites have been documented in the project area. No protected rare animals or plants have been documented in the project area.

C. Anticipated Impacts and Mitigation Measures

10. Construction phase. Key risks during construction phase include (i) soil erosion during the construction of pipeline networks, (ii) temporary noise disturbance to nearby villages, (iii) air pollution (mainly fugitive dust), (iv) inappropriate solid waste disposal (construction materials and/or worker litter), and (v) occupational and community health and safety. All works will be in modified rural lands with low ecological values. The anticipated impacts are minimal or moderate in significance, site- specific, and temporary in nature, and can be mitigated through the application of standard good construction management practices and health and safety practices.

11. Operational Stage Impacts. During operational and maintenance (O&M) stages of the subproject, potential impacts are associated with occupational and community health and safety risks including fire and natural gas leakage. These impacts can be effectively mitigated through good practice operational environmental management and health and safety practices. The project designs and EMP include the preparation of O&M procedures, training of staff (including worker health and safety), and emergency response procedures.

12. Coronavirus disease outbreak (COVID-19). The outbreak and global spread of COVID-19 since December 2019 pose new risks and management implications for most countries. For the current project, the extent of COVID-19 in Henan Province and the project area was reviewed. The requirements for a COVID-19 health and safety plan are included in the EMP. Measures include the screening of all project personal prior to admission to project sites and onsite measures for sanitation, emergency response, and the provision of personal protective equipment.

13. Project Benefits. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions compared to traditional fuel. When compared to the equivalent traditional fuel consumption (coal and liquefied natural gas (LNG), once operational the subproject will: (i) result in annual energy savings equivalent to 14,309.0 tce, thereby providing a global public good by avoiding the annual emission of 32,685.47 tons of CO2; (ii) improve local air quality through the estimated annual reduction of emissions of SO2 by 458.5 tons, NOx by 94.4 tons, and PM by 272.5 tons; and (iii) eliminate the negative impacts of coal transportation by truck or train.

D. Public Consultation and Grievance Redress Mechanism

14. Information disclosure and public consultation were conducted during the subproject preparation and construction. The public consultation meetings were held with 1268 residents and representatives of local agencies, including a questionnaire survey after the meetings. Mitigation measures to address these concerns from consulted villagers and institutions have been incorporated in the EMP (Appendix 1).

15. A project grievance redress mechanism (GRM) has been designed to facilitate the resolution

4 of complaints during project construction and operation. The GRM includes time-based steps for receiving, documenting, and resolving grievances. Any concerns raised through the GRM will be addressed quickly and transparently, and without retribution to the affected persons.

E. Environmental Management Plan

16. An EMP (Appendix 1) has been developed to ensure (i) implementation of identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environmental impacts; (ii) implementation of monitoring and reporting against the performance indicators; and (iii) compliance with the PRC’s relevant environmental laws, standards and regulations and the SPS. The EMP includes an environmental monitoring plan to monitor the environmental impacts of the project and assess the effectiveness of mitigation measures, and a capacity building and training program focused on health, safety, and environment. Organizational responsibilities and budgets are clearly identified for implementation, monitoring, and reporting.

F. Risks and Assurances

17. The IAs have no previous experience in ADB safeguard requirements and has low institutional capacity for environmental management. This may result in the limited implementation of the project EMP and inadequate operation of the project facilities. These risks will be minimized by (i) the appointment of qualified environmental officers within the PMO and implementing agencies to lead EMP delivery, (ii) the appointment of additional qualified environmental officers as needed at the level of individual subprojects, (iii) inclusion of consultant environment specialists in the start-up and loan implementation consulting services, (iv) recruitment of an environmental monitoring agency (to lead the external monitoring specified in the EMP), (iv) clear roles and responsibilities of all relevant agencies for EMP implementation, including contractors and construction supervision companies, and (v) capacity building for EMP implementation. Environmental assurances have been agreed upon and are included in the loan and project agreements.

G. Conclusion

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

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

I. INTRODUCTION A. The Project

2. The program will support the transition from coal to cleaner fuel for residential, commercial, and industrial users in select less developed counties of Henan Province, thereby reducing a major source of air pollution in the greater BTH region. The program will have four outputs:

Output 1: Clean gas network systems expanded. The program will construct natural gas network systems including medium and low pressure small diameter transmission and distribution pipelines (26,880 km) and 12 regulatory and storage substations, together supplying 316.63 million Nm3 of clean gas to 1.2 million customers by 2023, thereby replacing existing old and polluting coal burning facilities.

3. The subproject will (i) install 161.91 km medium pressure pipelines to transfer gas to 13 towns and townships including Guying Town, Kaocheng Town, Guyang Town, Hongmiao Town, Nanzhang Town, Mengzhai Township, Xiaosong Township, Batou Township, Sanyizhai Township, Yifeng Township, Xuhe Township, Putaojia Township and Yanlou Township of Lankao County ; (ii) install 119.90 km medium pressure pipelines (to regulation boxes) and 1,747.90 km low pressure pipelines (from regulation boxes to households) within the 13 towns and townships to transfer gas to 68,460 households; and (iii) improve the cleaner fuel use awareness in Lankao County.

Limited (CTLG). A program coordination committee comprised of ZYIHG, YTNE, Provincial Development and Reform Commission, Provincial Finance Bureau, and other relevant provincial government agencies, will be established to provide oversight and strategic guidance in implementing the program. Lankao Subcomany of YTNEC will be the project implementing unit (PIU) of the subproject.

B. Report Purpose

5. This report, including an environmental management plan (EMP) is prepared following both national regulations and ADB’s environmental safeguard requirements specified in the Safeguard Policy Statement (SPS 2009). The EMP is presented in Appendix I.

C. Approach to Report Preparation

6. Under ADB’s Safeguard Policy Statement (SPS 2009), the subproject is classified as Category B for the environment. This IEE has been prepared following the requirements of the SPS and procedures of the PRC. It is based upon the domestic tabular environmental impact reports (EITs), domestic feasibility study report, site visits by the consultant team engaged by YTNE, and secondary information sources.

D. Report Structure

7. This IEE report consists of an executive summary, nine chapters and one appendix. The report is structured as follows:

Executive Summary Summarizes critical facts, significant findings, and recommended actions.

I Introduction Introduces the proposed component, report purpose, approach to EIA preparation and EIA structure.

II Policy, Legal, and Administrative Framework Discusses PRC’s and ADB’s environmental assessment legal and institutional frameworks, status of approval of the domestic EIA reports, and applicable environmental guidelines and standards.

III Description of the Project Describes the project rationale, scope, components, location, key features, implementation arrangements, budget and time schedule.

IV Description of the Environment Describes relevant physical, biological, and socioeconomic conditions within the subproject area.

V Anticipated Environmental Impacts and Mitigation Measures Describes impacts predicted to occur as a result of the component and identifies the mitigation measures which will be implemented.

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

VII Information Disclosure, Consultation, and Participation Describes the process undertaken for engaging stakeholders and carrying out information disclosure and public consultation.

VIII Grievance Redress Mechanism Describes the component grievance redress mechanism (GRM) for resolving complaints.

IX PROJECT ASSURANCES Describes the assurances of the project.

X Conclusion and Recommendation Presents conclusions drawn from the assessment and recommendations.

Appendix

8. Appendix I presents the EMP, including required construction and operation phase environmental mitigation measures, EMoP, reporting requirements, and capacity building. Other appendices present supporting documentation and approvals, and coal and emission reduction factors and calculations.

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Overview

1. The project is classified as environmental Category B under the ADB SPS (2009), requiring the preparation of a project IEE. ADB’s country partnership strategy for the PRC (2016-2020) supports realizing an ‘ecological civilization’ through: environmental sustainability, pollution control, and climate change adaptation measures; achieving greenhouse gas emissions commitments ahead of its 2030 target; and, the overarching strategic goal of building a well-off society by focusing on the three strategic pillars of inclusive growth, environmentally sustainable development, and urban-rural integration. Under PRC EIA regulations, the project is divided into 2 construction subprojects and is classified as Class-2 (equivalent to ADB Category B), and preparation of two separate environmental impact tabular reports (EITs) was required.1 The project is consistent with the PRC and Henan Provincial 13th Five Year Plans.

2. The PRC has a range of laws, regulations, technical guidelines and standards that govern the way in which environmental protection and environmental impact assessment for projects must be implemented, including for pollution prevention and control on air, noise, water, ecology and solid waste, and technical guidelines on assessing ambient air, noise, surface water, groundwater, and ecological impacts. The consolidated EIA report upon which this project IEE is largely based was prepared in accordance with the PRC Law on Environmental Impact Assessment (2018 revision); Management Regulation on EIA Categories of Construction Projects (Ministry of Ecology and Environment (MEE), 2018 revision); Guidelines on Public Participation in EIA (MEE, 2019);2 and, Technical Guidelines for Environmental Impact Assessment (HJ/T2).3

B. PRC Environmental Laws, Regulations, Guidelines, and Standards 3. The primary national laws and regulations that govern IEE are in Table II-1. Table II-2 shows the relevant national and provincial laws and regulations.

Table II-1: National Laws and Regulations Relevant to Project Law Year Environmental Protection Law 2015 Urban and Rural Planning Law 2008 Solid Waste Pollution Prevention and Control Law 2016 Environmental Impact Assessment Law 2019 Water Pollution Prevention and Control Law 2018 Air Pollution Prevention and Control Law 2018 Noise Pollution Prevention and Control Law 2018 Land Administration Law 2004 Wild Animal Protection Law 2018 Water and Soil Conservation Law 2011 Clean Production Promotion Law 2012 Fisheries Law 2013 Energy Conservation Law 2016 Circular Economy Promotion Law 2008 Regulation Year

1 The PRC’s Directory for the Management of Different Categories of Project Environmental Impact Assessment classifies EIAs into three categories with different reporting requirements: (i) Full EIA Report – for projects with potentially significant environmental impacts; (ii) Environmental Impact Tabular Report (EIT) – for projects with less significant impacts; (iii) Environmental Impact Registration Form (EIRF)– for projects with the least environmental impacts. 2 Passed in the meeting of MEE on 16 April 2019 and implemented since 1 January 2019. 3 Including: atmosphere (HJ 2.2), surface water (HJ/T 2.3), noise (HJ 2.4), ecology (HJ 19) and biodiversity (HJ 623), groundwater (HJ 610), and invasive species (HJ 624).

Classification of Construction Project Environmental Protection Management (MEE) 2018 Environmental Protection Management for Construction Projects 2017 Circular on National Ecological Environment Conservation Outline issued by the State Council 2000 Interim Provisions on Promoting Industrial Structure Adjustment 2005 Decision on Revision of Category on Industrial Structure Adjustment (2011) (NDRC) 2013 Decision on Implementing Approach of Scientific Development and Strengthening 2005 Environmental Protection Suggestions on Further Strengthening Ecological Environment Protection 2007 Regulation on Implementing PRC Land Administration Law (1999) 2014 Management Regulation on Urban Construction Wastes 2005 Circular on Implementing Action Plan for Air Pollution Prevention and Control and Making Strict 2014 Access Approval of EIA Measures on Public Participation in Environmental Impact Assessment 2018 Ecological Environmental Protection Plan of Yangtze River Economic Belt 2017 National Hazardous Waste List (MEE Order No. 39) 2016 Circular on Further Strengthening Environmental Impact Assessment Management to Prevent 2012 Environmental Risks (Ministry of Environmental Protection, No. 77) Regulations of the People's Republic of China on the Protection of Wild Plants 2017 Administrative Measures for Pollution Discharge Permits (Trial) (MEE Order No. 48) 2018 Catalogue for the Emission Permission Classification of Fixed Pollution Sources (MEE Order 2017 No. 45) Notice on Coordination between EIA and Emission Permit System” (MEE, [2017] No. 84) 2017 Interim Measures for Environmental Protection and Acceptance of Construction Project 2017 Completion (MEE, [2017] No. 4) Regulations on Pollution Prevention and Control of Drinking Water Source Protection Areas 2010 (amended on December 22, 2010); Regulations of the People's Republic of China on River Management 2018

Table II-2: Local Laws, Regulations and Standards Laws and regulations Year Henan Provincial Environmental Protection Regulation 2006 Henan Provincial Drinking Water Source Protection Zoning 2007 Henan Provincial Air Pollution Prevention and Control Regulation 2017 Henan Provincial Water Pollution Prevention and Control Regulation 2010 Henan Provincial Solid Waste Pollution Prevention and Control Regulation 2012 Henan Provincial Ecological Protection Red Line Demarcation Plan 2019 Notice of Henan Provincial Government on Issuing the Red Line of Ecological Protection in 2018 Henan Province Regulation of the Henan Provincial Government on Strengthening the Management of 2018 Environmental Impact Assessment Henan Provincial Soil and Water Conservation Plan (2016-2030) 2016

4. The implementation of environmental laws and regulations is supported by associated management and technical guidelines. Those applicable to the project are summarized in Table II-3.

Table II-3: Applicable Environmental Guidelines Guideline Code/Year Technical Guideline on EIA: for Construction Projects HJ/T 2.1-2016 Technical Guideline on EIA: Atmospheric Environment HJ 2.2-2018 Technical Guideline on EIA: Surface Water Environment HJ/T 2.3-2018

Technical Guideline on EIA: Acoustic Environment HJ 2.4-2009 Technical Guideline on EIA: Ecological Assessment HJ 19-2011 Technical Guideline on EIA: Ground Water Environment HJ610-2016 Standard for the assessment of regional biodiversity HJ623-2011 Technical Guideline for Assessment on Environmental Risk of Alien Species HJ624-2011 Technical Guideline on Environmental Risk Assessment for Construction Project HJ/T169-2018 Technical Specifications for the Collection, Storage and Transportation of HJ2025-2012 Hazardous Waste National List of Hazardous Wastes (MEE, Order No. 39) 2016 General Provisions-Technical Guidelines for Self-Monitoring of Pollution Emission HJ819-2017 Entities Guidelines for Environmental Impact Assessment of Hazardous Wastes in 2017 Construction Projects” (MEE, No. 43) Technical Specifications for Application and Issuance of Pollution Discharge HJ942-2018 Permits Technical Requirements for Environmental Protection for Standardized HJ 773-2015 Construction of Centralized Drinking Water Sources Technical Specifications for Domestic Waste Incineration Treatment Engineering CJJ 90-2009

5. The national environmental quality standard system that supports/evaluates the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function, i.e. pollutant emission/discharge standards and ambient environmental standards. The standards applicable to this project are in Table II-4.

Table II-4: Applicable Environmental Standards Standard Code Surface Water Quality Standard GB3838-2002 Urban Ambient Acoustic Quality Standard GB3096-2008 Ambient Air Quality Standard GB3095-2012 Groundwater Quality Standard GB/T14848-2017 Integrated Emission Standard of Air Pollutants GB16297-1996 Emission Standard for Odor Pollutant GB 14554-93 Emission Standard for Industrial Enterprises Noise at Boundary GB12348-2008 Soil environmental quality-Risk control standard for soil contamination of agricultural GB15618-2018 land Soil environmental quality-Risk control standard for soil contamination of development GB36600—2018 land Integrated Wastewater Discharge Standard GB8978-1996 Noise Limit for Construction Sites GB12523-2011 Standard on Pollution Control of Storage and Disposal Location for General Industrial GB18592-2001 Waste Technical Specification on Landfill Treatment of Municipal Waste GB50869-2013 Standard on Pollution Control of Municipal Waste Landfill GB16889-2008

Identification of Major Hazard Sources of Hazardous Chemicals GB18218-2018 Standard for Grading of Soil Erosion Intensity SL190-2007 Urban Area Environmental Vibration GB10070–88

C. International Agreements

6. The PRC is signatory to major international environmental agreements relevant to the project (Table II-6), dealing with the biodiversity, wetland protection and climate change. Table II-5: Applicable international agreements Agreement Year Purpose (relevance to project) Ramsar Convention on Wetlands of Prevent encroachment on and loss of wetlands for now and 1975 International Importance the future (project includes the reservoir) Conservation and sustainable use of biological diversity Convention on Biological Diversity 1993 (project includes afforestation) United Nations Framework Achieve stabilization of atmospheric greenhouse gas (GHG) 1994 Convention on Climate Change concentrations (project involves GHG emission reduction) Kyoto Protocol to UN Framework 2005 Further reduction of greenhouse gas emissions (as above) Convention on Climate Change Montreal Protocol on Substances 1989 Protection of the ozone layer (same as above) That Deplete the Ozone Layer UN Convention to Combat Combat desertification and mitigate effects of drought (project 1996 Desertification involves soil erosion control) Basel Convention 1992 Control over transboundary movement of hazardous wastes

D. Applicable ADB Polices and World Bank’s EHS Guidelines 7. The Safeguard Policy Statement (SPS, 2009) is ADB’s principal document that prescribes ADB requirements for the design, preparation, and implementation of safeguards for ADB-funded projects. All projects funded by ADB must comply with the SPS (2009), which establishes an environmental review process to ensure that projects undertaken as part of programs funded under ADB loans are environmentally sound, are designed to operate in line with applicable regulatory requirements, and are not likely to cause significant environment, health, social, or safety hazards. The SPS also requires borrowers to follow environmental standards consistent with good international practice, as reflected in internationally recognized standards such as the World Bank Group’s EHS Guidelines.4 The latter contains discharge effluent, air emissions, and other numerical guidelines and performance indicators as well as prevention and control approaches that are normally acceptable to ADB and are generally considered to be achievable at reasonable costs by existing technology. In the event that when host country regulations differ from international levels and measures, a project will achieve whichever is more stringent, and if less stringent levels are proposed, then a full and detailed justification be provided by the borrower. Hence, the project compared both the PRC and EHS standards and the more stringent standards are applicable for the current project (see the following sections).

8. Compared with PRC EIA requirements, the SPS requires a number of additional considerations for the EIA preparation, including (i) a project-specific GRM, ; (ii) definition of the project area of influence; (iii) assessment of direct, indirect, induced and cumulative impacts; (iv) due diligence of project associated facilities; (v) protection of physical cultural resources; (vi) climate

4 World Bank Group. Environmental, Health, and Safety Guidelines. 30 April 2007. Washington.

12 change mitigation and adaptation; (vii) occupational and community health and safety requirements (including emergency preparedness and response); (viii) impacts on livelihoods through environmental media; (ix) biodiversity conservation; and (x) ensuring that the EMP includes an implementation schedule and measurable performance indicators. These requirements are usually weak in PRC EIAs. This IEE has filled in the above gaps and comply with SPS requirements.

E. Assessment Standards for Proposed Project Components

a. Surface Water Quality 9. The determining standard is PRC’s Environmental Quality Standards for Surface Water (GB 3838-2002). This defines five categories reflecting different environmental functions: I – highest water quality, for headwaters and national nature reserves; II – drinking water sources in Class I protection areas, habitats for rare aquatic organisms, breeding grounds for fish and crustaceans, and feeding grounds for fish fry; III – drinking water sources in Class II protection areas, wintering grounds for fish and crustaceans, migration routes, water bodies for aquaculture and capture fishery, and swimming; IV – general industrial use and non-contact recreational activities; V – lowest quality, suitable only for agricultural and scenic water uses (Table II-6). The World Bank Group has no guidelines on ambient water quality and recognizes the use of local criteria for compliance purposes. Hence, the standards relevant to this project are Grade III of PRC Environmental Quality Standards for Surface Water (GB3838-2002) (Table II-6). The standard includes 24 parameters for regular surface water, and other 68 parameters specific for centralized drinking water sources. Eight of the 24 parameters were selected for sampling (Table II-6) as these are the most relevant to providing meaningful baselines and risk assessment based on the project scope.

Table II-6: Environmental Quality Standards for Surface Water (Unit: mg/L, except for pH)

Parameter pH CODCr CODMn BOD5 TN NH3-N TP Oil Class II Standard 6-9 15 4 3 0.5 0.5 0.1 0.05 Grade III Standard 6-9 20 6 4 1 1.0 0.2 0.05 Grade IV Standard 6-9 30 10 6 1.5 1.5 0.3 0.5 Grade V Standard 6-9 40 15 10 2 2 0.4 1 CODCr/CODMn = chemical oxygen demand, BOD5 = 5 days biochemical oxygen demand, NH3-N = ammonia nitrogen, TN=total nitrogen, TP=total phosphorus.

b. Ambient Air Quality 10. In the PRC, air quality is categorized in three classes (Ambient Air Quality Standard GB 3095- 1996 and amendment in 2000): Class I (highest quality) to Class III (the worst). Ambient air quality in the project area meets the Class II standard. In 2012, a new national standard was issued (GB 3095-2012; effective 1 January 2016), which replaced GB 3095-1996. The new standard combined Classes II and III, and has two classes, I and II. It also introduced PM2.5 standards and relaxed the 5 1-hour NO2 standard to match the World Health Organization (WHO) Air Quality Guideline (AQG) standard. The World Bank Group adopted the WHO standards for its Environment, Health and Safety (EHS) standards for air quality. Recognizing that progressive actions are needed to achieve these standards, the WHO established interim targets to achieve the AQG. Table II-7 compares the PRC and World Bank Group’s EHS standards for ambient air quality. The EHS has stricter standards for SO2 and PM10, and PRC has stricter or equivalent standards for other parameters. Hence, the more stringent standards are applicable to the project. Ambient air quality in the environmentally sensitive locations, and the areas outside the construction sites, meets Grade II of PRC Ambient Air Quality Standard GB3095-2012 and EHS guidelines.

5 World Health Organization. 2005. Air quality guidelines global update 2005. Bonn, Germany.

Table II-7: Ambient Air Quality Standard - Grade II (Unit: mg/m3). GB 3096-1996 (Grade GB3095-2012 World Bank Group EHS Pollutant Time II) (Grade II) Guidelines Annual average 0.06 0.06 n/a 0.125-0.05 (0.005 - 0.02 SO2 Daily average 0.15 0.15 guideline) Hourly average 0.50 0.50 n/a Annual average - 0.035 0.035 PM2.5 Daily average - 0.075 0.075 Annual average 0.10 0.07 0.07-0.03 (0.02 guideline) PM10 Daily average 0.15 0.15 0.075-0.15 (0.05 guideline) Annual average 0.08 0.04 0.04 guideline

NO2 Daily average 0.12 0.08 n/a Hourly average 0.24 0.2 0.20 guideline Daily average 4.0 4.0 n/a CO Hourly average 10.0 10.0 n/a Note: SO2=sulfuric dioxide; NO2=nitrogen dioxide; PM10/PM2.5=particulate matter; CO=carbon monoxide.

c. Ambient Acoustic Quality 11. The PRC’s GB 3096-2008 identifies five categories based on tolerance to noise pollution: Category 0 – areas with convalescent facilities (least tolerant to noise; stringent day and night noise standards); 1 – residential areas, hospitals and clinics, educational institutions and research centers; 2 – mixed residential and commercial areas; 3 – areas with industrial production, storage and logistics functions; 4 – areas adjacent to traffic noise sources such as major roads and highways, and is subdivided into 4a (road and marine traffic noise) and 4b (rail noise). Comparison with World Bank Group EHS guidelines show that the EHS guidelines have lower noise limits for residential, commercial and industrial mixed areas but higher noise limits for industrial areas and night-time noise near trunk roads (Table II-8). Therefore, the EHS standards, which are more stringent than PRC, are applied for the project activities in rural areas as well as for communities in the urban areas. While for industrial areas, the PRC standards are applicable since it has more stringent standards than EHS. Table II-8: Environmental Quality Standards for Noise (LAeq: dB) World Bank Group GB 3096-2008 Noise EHS Guidelines Applicable Area Category Day Night Day Night 06:00-22:00 22:00-06:00 07:00-22:00 22:00-07:00 0 Areas needing extreme quiet e.g. convalescence areas 50 40 Areas mainly for residence, hospitals, cultural and 1 55 45 55 45 educational institutions, administration offices 2 Residential, commercial and industrial mixed areas 60 50 3 Industrial areas, warehouses and logistic parks 65 55 70 70 4a Area on both sides of urban trunk road 70 55 Note: Functional Area 4 is divided into 4a for trunk roads and 4b for railway lines.

12. The project areas involve the implementation of Grade II of Environmental Quality Standard for Noise (GB3096-2008), and the applicable World Bank EHS Guideline is the noise guideline for the residential and institutional area and for the industrial and commercial area (Table II-9).

Table II-9: Environmental Quality Standard and EHS Guideline for Noise Unit: dB(A) Classification Daytime Nighttime Remarks Grade I Standard 55 45 Refer to residential communities, villages, suburb and

countryside, hospitals, schools and research institutes Refer to major functions of commercial and market trading use or combination of residential, commercial Grade II Standard 60 50 and industrial which areas need to maintain the quiet environment for the residential area Refer to major functions of industrial manufacturing and Grade III Standard 65 55 warehousing logistic use which areas need to avoid the significant negative effect caused by the industrial noise Refer to the areas along the traffic trunk line, except the Grade 4a Standard 70 55 railway, where need to avoid the significant negative effect caused by the traffic noise EHS Class I 55 45 for residential, institutional area EHS Class II 70 70 for industrial and commercial area

d. Ground Water Quality 13. In the PRC this is divided into five categories according to the Quality Standard for Ground Water (GB/T 14848-2017) (Table II-10). Category III or above is suitable as drinking water. Category IV can only be used for drinking water after treatment. WHO guidelines for drinking-water quality6 are also given in Table II-10, and concentrations above these guidelines are the cause of health concern. The national Grade III standards are more stringent than WHO standards, and hence the groundwater quality in the project area must comply with the Grade III standards. Table II-10: Quality Standard for Groundwater (Unit: mg/L, except pH, total bacteria and total coli. WHO Guidelines for Parameter Grade I Grade II Grade III Grade IV Grade V drinking water quality (2017) 5.5～6.5 6.5-8.5 pH 6.5～8.5 <5.5，>9 8.5～9 Ammonia nitrogen (mg/L) ≤0.02 ≤0.10 ≤0.50 ≤1.5 >1.5 NA Chloride (mg/L) ≤50 ≤150 ≤250 ≤350 >350 ≤250 Sulfate (mg/L) ≤50 ≤150 ≤250 ≤350 >350 NA Nitrate (in N) (mg/L) ≤2 ≤5 ≤20 ≤30 >30 ≤50 Nitrite (in N) (mg/L) ≤0.01 ≤0.10 ≤1.00 ≤4.80 >4.80 ≤3 Fluoride (mg/L) ≤1 ≤1 ≤1 ≤2 >2 ≤1.5 Zinc (mg/L) ≤0.05 ≤0.5 ≤1 ≤5 >5 ≤3 Copper (mg/L) ≤0.01 ≤0.05 ≤1 ≤1.5 >1.5 ≤2 Manganese (mg/L) ≤0.05 ≤0.05 ≤0.1 ≤1.5 >1.5 NA Iron (mg/L) ≤0.1 ≤0.2 ≤0.3 ≤2.0 >2.0 NA Total dissolved solids ≤1000 ≤300 ≤500 ≤1000 ≤2000 >2000 (mg/L) Total hardness (mg/L) ≤150 ≤300 ≤450 ≤650 >650 - Permanganate index ≤1 ≤2 ≤3 ≤10 >10 (mg/L) Mercury (mg/L) ≤0.0001 ≤0.0001 ≤0.001 ≤0.002 >0.002 ≤0.006 Hexavalent chromium ≤0.05 ≤0.005 ≤0.01 ≤0.05 ≤0.1 >0.1 (mg/L) Arsenic (mg/L) ≤0.001 ≤0.001 ≤0.01 ≤0.05 >0.05 ≤0.01

6 Guidelines for drinking-water quality, 4th edition, incorporating the 1st addendum, 2017. https://www.who.int/water_sanitation_health/publications/drinking-water-quality-guidelines-4-including-1st- addendum/en/

Lead (mg/L) ≤0.005 ≤0.005 ≤0.01 ≤0.1 >0.1 ≤0.01 Cadmium (mg/L) ≤0.0001 ≤0.001 ≤0.005 ≤0.01 >0.01 ≤0.003 Cyanide (mg/L) ≤0.001 ≤0.01 ≤0.05 ≤0.1 >0.1 ≤0.07 Volatile phenol (mg/L) ≤0.001 ≤0.001 ≤0.002 ≤0.01 >0.01 ≤0.002 Benzene (μg/L) ≤0.5 ≤1 ≤10 ≤120 >120 ≤10 Toluene (μg/L) ≤0.5 ≤140 ≤700 ≤1400 >1400 ≤700 Xylene (μg/L) ≤0.5 ≤100 ≤500 ≤1000 >1000 ≤500 Nickel (mg/L) ≤0.002 ≤0.002 ≤0.02 ≤0.1 >0.1 ≤0.02

e. Wastewater Discharge Standard 14. Discharge of wastewater from construction sites is regulated under PRC’s Integrated Wastewater Discharge Standard (GB 8978-1996). Class I standards apply to discharges into Category III water bodies under GB 3838-2002. Class II standards apply to discharges into Categories IV and V water bodies. Class III standards apply to discharges into municipal sewers going to municipal wastewater treatment stations (WWTS) with secondary treatment (Table II-11). World Bank Group has no such EHS standards for wastewater discharges from construction sites, and hence PRC standards are applicable to the project. Under this subproject, wastewater discharge is required to be of Grade III Surface Water Quality Standard of GB3838-2002 because wastewater generated during construction will be recycled and waste water generated operation will be discharged to local municipal sewage pipeline (Table II-11). The PRC standard includes 56 parameters, most of which are for industrial sewage. The current subproject does not involve industrial development or existing industrial sites, and only six selected parameters were sampled, focusing on construction wastewater management.

Table II-11: Integrated Wastewater Discharge Standards (Unit: mg/L, except for pH)

Parameter pH CODCr BOD5 SS NH3-N Oil Class I Standard 6～9 100 20 70 15 5

Class III Standard 6～9 500 300 400 / 20 SS = suspended solids

f. Air Pollutant Emission 15. The PRC’s Air Pollutant Integrated Emission Standard (GB 16297-1996) regulates the emission of particulate matter into the air, with a maximum allowable concentration of 120 mg/m3 at source and for fugitive emission the highest concentration outside site boundary of 1.0 mg/m3. During construction, levels of onsite fugitive emissions should comply with Grade II of Integrated Emission Standards of Air Pollutants (GB16297-1996) (Table II-12). The World Bank Group has no such standards and the PRC standards are applicable for the subproject.

Table II-12: Integrated Emission Standards of Air Pollutants Unit: mg/m3 WHO Air Quality Fugitive Emission Limit Guidelines Classification Parameter at Monitoring Point (24-hour average)

SO2 0.4 0.02

Grade II Standard NOx 0.12 0.2 PM 1.0 0.05

NOx = nitrogen oxides.

g. Noise Levels During Project Construction 16. The construction activities must comply with PRC Noise Limits for Construction Site standard

(GB12523-2011). For the operation phase, no noise will be generated. The PRC standards for construction noise are more stringent than World Bank EHS Guidelines (Table II-13), and hence PRC standards are applicable to the project.

Table II-13: Emission Standard of Environment Noise for Boundary of Construction Site Daytime (dB(A)) Nighttime (dB(A)) Code of Standard 70 55 GB12523-2011 70 70 EHS (industrial, commercial area)

F. Applicable Requirements of Protection Zone

17. There are several ground water drinking water wells near the subproject sites: Xuhe Township Ground Drinking Water Well (1 well), Nanzhang Town Ground Drinking Water Wells (2 wells) and Zhuaying Township Ground Drinking Water Well (1 well). The protection zones of the wells are a 40m area around the wells based on the Lankao County’s notice on drinking water source protection area zoning plan (http://www.lankao.gov.cn/info/1087/22547.htm). Based on the domestic EITs, the subproject works will not occur in the protection zones of the wells.

G. Domestic EIA Preparation and Approval 18. The draft domestic environmental assessments, comprising 2 EITs prepared by Henan Lvhong Environmental Tech Company, a national Grade A certified institute. The domestic EITs reports were approved by Lankao Ecology and Environment Bureau (EEB) by March 27, 2019 and September 29, 2019.

Figure II-1: Domestic EIA approvals

III. DESCRIPTION OF THE PROJECT

A. Rationale 20. The greater Beijing-Tianjin-Hebei (BTH) region is one of the major strategic industrial and commercial zones that generates around one-third of the gross domestic product in the People’s Republic of China (PRC). This region has witnessed around 8% of annual growth of gross domestic product while heavily depending on the use of coal as the primary source of energy for residential, commercial, and industrial purposes, resulting in serious and extensive air pollution. To tackle this problem in 2013, the PRC launched the first Comprehensive Action Plan for Air Pollution Prevention and Control (CAAP) 2013–2017 that aimed to improve air quality in the region. The CAAP’s successful implementation has led to lower concentration of particulate matter less than 2.5 3 micrometer in diameter (PM2.5) by 39.6%, from 105 micrograms per cubic meter (μg/m ) in 2013 to 64 μg/m3 in 2017. To further air quality improvement, the government also issued the Three-Year Action Plan to Win Blue Sky War (2018–2020) in June 2018. It includes policy actions to accelerate (i) closing of heavily polluting industries; (ii) reducing surplus production capacity in industries; (iii) shifting to less air polluting transportation modes; and (iv) building cleaner and less air polluting energy systems to reduce air pollutant emissions by more than 15% for nitrogen oxide (NOx), sulfur dioxide (SO2), and more than 18% for PM2.5 as compared with the emission level in 2015.

21. Henan province in the greater BTH region is one of the largest populated and the heaviest coal dependent province in the PRC. Whereas the province has good access to the major national natural gas transmission pipelines, such an advantage in natural gas access has not been fully utilized for air pollution reduction in the greater BTH region. In 2018, the province’s primary energy was highly dependent on coal which accounted for around 72.0% of the primary energy as compared with the national average of 59.0%. While Henan province has reduced its dependence on coal from 84.3% in 2010, it is still one of the major contributors of air pollution in the greater BTH region. Since coal burning is the major source of air pollution in the province, the provincial government issued the medium- and long-term energy development plan (2012–2030) that holds strategic target to increase natural gas supply for reducing coal dependency in primary energy use to 65% by 2023 and 58% by 2030. In 2014, it also issued Henan Blue Sky Action Plan (2014– 2017) to curve emissions of particulate matter less than 10 micrometer in diameter (PM10) by 15% and PM2.5 by 10% as compared with the emission level in 2012. In spite of successful achievement of its emission reduction targets in 2017, Henan province recorded its air pollutant emissions in terms of PM2.5 (62 3 3 3 3 μg/m ), PM10 (106 μg/m ), SO2 (21 μg/m ), and NOx (41 μg/m ) in 2018, all of which are far above the national air quality category I standard, and of the World Health Organization standard. In 2018, the Three-Year Action Plan for Henan Province to Combat Blue Sky War (2018–2020) was issued, that includes comprehensive policy actions in coal consumption reduction, energy efficiency promotion, renewable energy deployment, and emission reduction from transportation source, to (i) reduce PM2.5 to 58 μg/m3 by 2020, and (ii) achieve 35 μg/m3 of the national air quality category II standard by 2023.

22. The medium- and long-term policy framework of Henan province (para. 21) provides for systematically addressing ambitious challenges in reducing both high coal dependency and air pollution. The provincial government has taken wide-ranging actions which primarily focus on the reduction of coal consumption through annual coal use cap, demolition of energy inefficient coal- fired boilers, and promotion of natural gas and other cleaner fuel use. Such ongoing policy actions have resulted in a rapid 60.2% increase in natural gas consumption in the province for last 5 years (2014-2018). City gas supply was the primary driver and accounts for 67.1% of the total natural gas consumption in 2018. Despite rapid expansion in the natural gas consumption in major city centers, most of the population in semi-urban and rural areas in the province remains unserved due to limited affordability and difficulty to change from traditional fuel use, primarily due to affordability, and low private and public investment appetite associated with higher investment cost in reaching

18 geographically scattered population in townships and villages.5 Diversifying the fuel source is another challenge for sustainable cleaner fuel supply. Henan province is the largest grain (especially wheat, rice, and maize) producer in the PRC and has untapped biogas potential by using grain wastes such as straw, which could be one of the major sources for switching to cleaner fuel from the coal. However, current biogas production is less than 1% of the resource potential in the province due to limited policy support, underdeveloped raw material collection, and not mature domestic biogas fermentation technology which has resulted in lower quality and productivity and higher operation costs.

23. To provide province-wide gas access, the provincial government initiated the cleaner fuel switch investment program, which aims to establish county-based distributed gas supply and targets to reach 4.5 million customers in 80 of the less developed and geographically scattered counties for accelerating a fuel switch from coal to natural gas and biogas in industry and commercial, and household energy use. Since June 2018, it has already reached 307,078 customers in 10 counties. Upon successful completion of the overall program in 2030, 1,291 million normal cubic meter (Nm3) of cleaner fuel will be supplied annually which results in avoiding 4.17 million tons of annual coal use, thereby 7.29 million tons of carbon dioxide emission, 45,540 tons of SO2, 21,655 tons of PM2.5 emission, and 9,054 tons of NOx emission will be reduced.

24. To ensure sustainable funding for the long-term investment needs of the cleaner fuel switch program for 4.5 million customers in geographically-scattered townships and rural villages of the province in the greater BTH region, the program adopts ADB’s result-based lending (RBL) modality. ADB’s RBL program will support the financing of the program for the time- slice of 2019–2023 in the overall investment program for 2019–2030. The RBL program was designed on a basis of the lesson learned from the past natural gas distribution network investment in the province, in order to comprehensively address the broad challenges in expanding access to cleaner fuel (para 3), through (i) reducing the end-users’ burden with free- of-charge end-pipe connection, (ii) stimulating a change in traditional fuel use behavior of various end-user groups by the awareness campaign for clean gas use and its safety use, (iii) diversifying gas sources by using biogas, and (iv) building the institutional capacity for sustainable investment and operation with private sector involvement for improving the quality and efficiency of gas service delivery. The RBL modality is considered appropriate because it (i) supports the flexible implementation of a series of cleaner fuel switch activities systematically throughout the province; (ii) lower transaction costs to manage geographically-scattered activities using the existing fiduciary and safeguard systems with program action plan assuring their capacity enhancement; and (iii) successful implementation supported by ADB financing will leverage financing for the overall program target.

25. The RBL program is fully aligned with the priorities of broadening the response to climate change and strengthening environmental sustainability in ADB’s country partnership strategy for the PRC, 2016-2020.6 It will also support key strategic pillars of (i) tackling climate change by accelerating low greenhouse gas emissions development and ensuring environmental sustainability, (ii) strengthening governance and institutional capacity by establishing inclusive clean gas service delivery with greater engagement of the private sector, and (iii) accelerating progress in gender equality through gender mainstreaming activities.

26. The cleaner fuel switch investment program covers a 12-year period under the medium- and long-term energy development plan (2012−2030) of Henan Province to provide natural gas and biogas access to the population in geographically scattered less developed counties in the province of the greater BTH region. The program is being implemented in a phased manner, and supports activities at initial stage of the cleaner fuel switch investment program (2019–2030) to help achieve the goal of the overall program by 2030. The scope of these programs is summarized in Table III-1. Table III-1: Program Scope

Broader Government Results-Based Lending Item Program Program Outcome Use of cleaner fuels by 4.5 Use of cleaner fuels by 1.2 million million residential, commercial, residential, commercial, and and industrial customers in industrial customers in Henan Henan Province increased by Province increased by 2023. 2030. Key outputs Gas distribution network Gas distribution network systems systems expanded at the expanded at the county level, county level (94,080 km of low– thereby replacing old coal burning medium pressure distribution facilities; biogas production pipeline and 44 gas stations to initiated and delivered; gender- supply 1.29 billion Nm3 of gas), sensitive cleaner fuel use thereby replacing old coal- awareness initiated; and burning facilities; biogas institutional building and capacity production and delivery enhancement of the implementing increased (51 million Nm3); agencies supported. commercial financing mobilized; and gender-sensitive cleaner fuel use awareness enhanced. Activity types Infrastructure development for Infrastructure development for gas gas distribution and biogas distribution and pilot biogas production increased; gender- production, institutional building sensitive awareness campaign. and capacity enhancement, and gender-sensitive awareness campaign. Program expenditure €1988.9 million (2019–2030) €556.6million (2019–2023)

Main financiers and the ADB: €269 million; domestic ADB: €269 million; China respective financing amounts commercial banks: €1,114.7 Development Bank: €185.2 million; ZYIG and YTNE: €605.2 million; ZYIG and YTNE: million €102.4 million Geographic coverage Henan Province Henan Province Implementation period 2019–2030 2019–2023 ADB = Asian Development Bank, km = kilometer, m3 = cubic meter, Nm3 = normal cubic meter, YTNE = Henan Yu-Tian New Energy Co. Ltd., ZYIG = Zhongyuan Yuzi Investment Holding Group.

B. Project Description

27. The subproject will (i) install 161.91 km medium pressure pipelines to transfer gas to 13 towns and townships including Guying Town, Kaocheng Town, Guyang Town, Hongmiao Town, Nanzhang Town, Mengzhai Township, Xiaoxong Township, Batou Township, Sanyizhai Township, Yifeng Township, Xuhe Township, Putaojia Township and Yanlou Township of Lankao County ; (ii) install 119.90 km medium pressure pipelines (to regulation boxes) and 1,747.90 km low pressure pipelines (from regulation boxes to households) within the 13 towns and townships to transfer gas to 68,460 households; and (iii) improve the cleaner fuel use awareness in Lankao County. The pipeline of the subproject is presented in Figure III-1.

Legend

DN 160 medium pressure pipeline DN 63 medium pressure pipeline

DN 200 medium pressure pipeline DN 110 medium pressure pipeline Existing pipeline DN 90 medium pressure pipeline

Figure III-1: Location of Proposed Subproject

28. The length of the pipelines of the subproject is presented in Table III-2 and Table III-3.

Table III-2: Length of pipeline transfer gas to 13 towns and townships unit: m No. Section DN200 DN160 DN110 DN90 DN63 Subtotal Dahuzhuang Village to 1 4,235 1,677 5,317 5,512 16,741 Menglou Village Longwangmiao Village 2 8,017 5,312 5,158 6,795 25,282 to Fengzhuang Village Dhuzhuang Village to 3 6,402 1,120 7,522 Dawangzhuang Village Nanwangzhuang 4 Village to Shizhai 7,460 3,651 5,712 16,823 Village Lijiaoguan Village to 5 1,119 3,135 6,025 10,279 Ningzhuang Village 6 Guying Township 6,003 10,578 16,581 Nanguang Village to 7 9,695 4,147 13,842 Niuchang Village Xiguan Village to Mamu 8 3,313 3578 7976 14,867 Village 9 Huangkou Village 16,382 16,382

10 Xuhe Township 8,332 4,372 1,200 13,904 Yugang Village to 11 2,587 1,329 1,489 5,405 Xuedian Village Wuyemiao Village to 12 2,796 2,796 Xinxie Village 13 Dalizhuang Village 1,485 1,485

Total 16,382 22,433 29,903 53,215 39,976 16,1909

29. The pipelines in Table III-2 will be installed along the existing roads and all the pipelines will be direct buried beneath the existing roads. All the pipelines will be polyethylene pipes.

Table III-3: Length of pipelines within 13 towns and townships unit: m Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 1 Mengzhai Township Beisong Village 313 810.6 6,389.0

2 Mengzhai Township Daliji Village 446 1,051.0 11,162.0

3 Mengzhai Township Caozhuang Village 555 664.5 13,206.6

4 Mengzhai Township Sunyingxi Village 503 750.8 10,138.5

5 Xiaosong Township Qulou Village 342 806.0 11,410.5

6 Xiaosong Township Guodian Village 651 1,229.0 15,854.0

7 Xiaosong Township Kongzhuang Village 402 867.0 11,255.0

8 Xiaosong Township Jiazhai Village 315 467.0 7,584.0

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 9 Xiaosong Township Nanyuan Village 293 454.8 5,690.9

10 Xiaosong Township Shaogangsan Village 497 1,411.0 11,296.0

11 Yifeng Township Jinzhuang Village 263 16.0 5,414.3

12 Yifeng Township Xierlizhai Village 330 634.5 7,564.5

13 Yifeng Township Dongerlizhai Village 240 314.5 7,194.5

14 Yifeng Township Jinzhuang Village 102 248.9 2,185.5

15 Yifeng Township Zhangzhai Village 162 865.7 4,711.9

16 Yifeng Township Dongangtou Village 81 123.7 2,291.9

17 Yifeng Township Donggangtou Village 121 159.0 2,637.2

18 Yifeng Township Lizhai Village 134 384.0 4,005.0

19 Yifeng Township Gengzhuang Village 263 924.5 7,036.5

20 Yifeng Township Lizhai Village 156 418.0 4,483.0

21 Yifeng Township Donggangtou Village 552 996.5 16,026.3

22 Yifeng Township Sanhezhuang Village 52 139.3 1,525.6

23 Yifeng Township Zhangzhai Village 67 51.5 2,318.6

24 Yifeng Township Zhangzhai Village 67 151.5 2,698.7

25 Yifeng Township Xiezhuang Village 581 315.5 13,761.5

26 Yifeng Township Sanhezhuang Village 781 1,242.0 21,330.7

27 Yifeng Township Shiwu Village 183 88.6 5,617.6

28 Yifeng Township Yujiayuan Village 202 155.0 5,936.8

29 Yifeng Township Quantou Village 700 240.0 17,187.0

30 Hongmiao Town Chengzhuang Village 545 1,003.5 11,770.5

31 Hongmiao Town Beicun Village 143 525.0 3,161.0

32 Hongmiao Town Xiliuchenpu Village 472 283.7 10,620.5

33 Hongmiao Town Tiwanxi Village 454 379.5 11,058.9

34 Hongmiao Town Xinzhuang Village 149 230.5 3,355.1

35 Hongmiao Town Tiwandong Village 406 694.0 10,396.0

36 Hongmiao Town Gezhai Village 321 652.5 7,433.0

37 Hongmiao Town Dongliuchenpu Village 480 903.5 11,783.5

38 Sanyizhai Township Wuzhuang Village 215 472.4 3,728.2

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 39 Sanyizhai Township Xichenzhai Village 413 824.5 11,089.5

40 Sanyizhai Township Zhaolou Village 301 479.5 7,447.5

41 Sanyizhai Township Zhanglou Village 332 1,098.6 8,959.7

42 Sanyizhai Township Houzhai Village 301 972.4 6,614.1

43 Yifeng Township Weizhai Village 231 263.0 6,027.4

44 Yifeng Township Yifeng Village 495 502.0 14,099.2

45 Yifeng Township Daizhai Village 436 1,207.0 11,475.4

46 Yifeng Township Taipeng Village 102 265.2 2,926.0

47 Yifeng Township Dongzhuang Village 478 1,659.0 13,947.7

48 Yifeng Township Tushan Village 739 1,457.0 19,788.9

49 Sanyizhai Township Xuzhuang Village 289 14.0 7,492.7

50 Sanyizhai Township Houjianzhuang Village 262 447.0 6,907.7

51 Sanyizhai Township Tangguzhai Village 444 788.1 11,568.2

52 Sanyizhai Township Qianjianzhuang Village 298 14.5 7,381.6

53 Sanyizhai Township Youfangying Village 322 22.1 8,890.8

54 Hongmiao Town Qizhuang Village 296 18.4 8,599.3

55 Hongmiao Town Shuangyangshu Village 401 951.4 9,001.4

56 Hongmiao Town Bailou Village 296 460.5 9,520.7

57 Dongbatou Township Nanbei Village 196 351.0 5,052.3

58 Dongbatou Township Nanbei Village 149 293.0 3,859.3

59 Dongbatou Township Nanbei Village 877 1,654.7 18,878.9

60 Mengzhai Township Sunyingdong Village 311 723.0 7,338.0

61 Mengzhai Township Wanglou Village 117 56.0 3,088.0

62 Xiaosong Township Zhangzhuangzhai Village 447 757.0 10,708.0

63 Xiaosong Township Zhaizhuang Village 484 492.0 11,880.0

64 Xiaosong Township Xutang Village 383 843.0 10,921.0

65 Xiaosong Township Dongshaogang Village I 338 1,000.0 6,863.0

66 Xiaosong Township Xishaogang 716 1,283.5 16,561.3

67 Xiaosong Township Dongshaogang Village II 262 160.5 5,362.5

68 Putaojia Township Nanjiapo 130 289.5 3,902.5

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 69 Putaojia Township Hecunji 121 575.3 2,824.2

70 Putaojia Township Zhaoduolou 67 124.5 2,243.3

71 Putaojia Township Zhaizhuang 211 333.5 5,601.0

72 Putaojia Township Zhaoduolou Village 243 324.5 6,185.5

73 Putaojia Township Huangzhai Village 377 1,072.1 11,047.4

74 Putaojia Township Hecunji 197 19.0 6,535.8

75 Putaojia Township Hanxiangpo Village 138 327.0 4,568.1

76 Putaojia Township Hecunji Village 449 463.0 13,245.0

77 Putaojia Township Wangdapiao 638 911.5 17,628.8

78 Hongmiao Town Miaotai Village 290 584.0 7,958.0

79 Hongmiao Town Qianbailou 517 887.0 12,620.0

80 Hongmiao Town Wangzhuang Village 333 345.0 9,008.3

81 Hongmiao Town Tuling Village 555 1,761.5 14,762.0

82 Hongmiao Town Xiawuying 347 877.0 8,050.4

83 Sanyizhai Township Laoqiezhuang 479 20.8 10,222.5

84 Sanyizhai Township Yangpizhai 432 795.5 11,548.3

85 Sanyizhai Township Mengdong 303 608.5 7,129.2

86 Dongbatou Township Zhuzhuang Village 511 1,227.5 13,241.5

87 Dongbatou Township Hanli Village 511 1,552.5 13,460.4

88 Dongbatou Township Shuangjing Village 468 920.6 11,704.5

89 Dongbatou Township Leixinzhuang 573 687.5 15,750.6

90 Mengzhai Township Malinzhai 209 348.3 5,493.5

91 Nanzhang Town Chuanli Village 549 1,599.9 13,497.4

92 Nanzhang Town Zhaizhuang, Wanggaozhuang 394 205.9 8,984.3

93 Nanzhang Town Qianchengzi 394 481.7 9,137.9

94 Nanzhang Town Dailichen 292 104.0 6,586.5

95 Nanzhang Town Songzhuang 512 1,235.8 14,832.9

96 Nanzhang Town Zhouzhuang 80 108.5 1,307.8

97 Nanzhang Town Lvzhuang 503 32.4 12,991.9

98 Nanzhang Town Houchengzi 447 446.9 11,566.9

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 99 Nanzhang Town Songzhuang 199 584.0 5,404.7

100 Nanzhang Town Sunqiao 247 365.9 6,329.6

101 Nanzhang Town Guochongdou 373 1,381.2 8,871.4

102 Nanzhang Town Songzhuang 259 207.5 6,398.3

103 Yifeng Township Batou Village 363 1,098.0 10,769.0

104 Yifeng Township Huzhai Village 262 164.5 7,378.1

105 Yifeng Township Chenlou 329 210.0 9,184.8

106 Yifeng Township Qinzhai 255 16.5 6,920.7

107 Yifeng Township Donghao Village 244 16.2 6,150.0

108 Sanyizhai Township Kangzhai Village 306 874.0 8,496.5

109 Hongmiao Town Paifang Village 169 316.9 4,512.0

110 Hongmiao Town Maocaozhuang 242 432.2 6,786.0

111 Sanyizhai Township Kangzhai 546 1,670.8 13,436.5

112 Sanyizhai Township Qianyiwang 213 9.0 5,868.6

113 Sanyizhai Township Kangzhai 167 472.7 4,599.2

114 Sanyizhai Township Caoxinzhuang 552 199.3 15,491.1

115 Dongbatou Township Mengfang 118 46.5 2,906.8

116 Dongbatou Township Mengfang 208 10.0 5,178.5

117 Dongbatou Township Lichang Village 368 1,384.5 11,716.5

118 Dongbatou Township Gaozhai 491 215.5 11,774.5

119 Dongbatou Township Zhu'an 680 855.4 20,215.8

120 Xiaosong Township Wangfuqiao Village 213 376.0 4,925.0

121 Xiaosong Township Yuanzhuang Village 447 452.2 10,600.8

122 Xiaosong Township Luozhai 109 270.5 3,388.0

123 Xiaosong Township Zhangbicai East Village 725 1,812.9 16,515.3

124 Xiaosong Township Xi’nan Village 308 572.7 6,336.5

125 Xiaosong Township Xicun 405 651.8 8,633.5

126 Xiaosong Township Tangzhai 690 1,087.2 17,247.9

127 Xiaosong Township Wanghu Village 395 1,333.3 10,648.4

128 Xiaosong Township Luozhai 327 1,111.0 9,955.0

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 129 Xiaosong Township Xiaosong Village 649 613.6 12,517.0

130 Xiaosong Township Xiaosong Village 401 303.1 9,127.7

131 Hongmiao Town Kongzhuang 278 489.2 7,129.8

132 Hongmiao Town Qinglonggang 444 631.0 12,583.0

133 Hongmiao Town Kongzhuang Village 119 306.6 3,183.7

134 Hongmiao Town Kongzhuang Village 234 545.7 6,028.4

135 Hongmiao Town Guanchang Village 606 196.4 13,839.6

136 Hongmiao Town Puying Village 1201 2,878.0 26,274.0

137 Hongmiao Town Lizhuang Village 550 1,224.9 14,897.3

138 Hongmiao Town Fanzhuang 630 1,350.7 16,545.5

139 Hongmiao Town Daizhuang 1192 3,458.4 33,485.5

140 Putaojia Township Chenbukou 152 518.1 3,975.6

141 Putaojia Township Chenbukou 136 348.5 3,530.7

142 Putaojia Township Pingfang Village 151 311.1 4,583.1

143 Putaojia Township Lizhai Village 160 329.0 3,559.0

144 Putaojia Township Zhuanxiangmiao 461 1,214.0 12,886.5

145 Putaojia Township Hanxiangpo Village 331 649.7 10,130.1

146 Putaojia Township Houyangzhuang 227 52.5 6,560.4

147 Putaojia Township Wangzhuang Village 565 724.9 15,400.3

148 Putaojia Township Pingfang Village 200 417.6 5,962.4

149 Putaojia Township Duzhai Village 275 102.4 6,521.5

150 Putaojia Township Tushanzhai 646 810.5 18,299.1

151 Putaojia Township Putaojia New Community 92 102.0 1,694.0

152 Putaojia Township Hezhuang 411 1,182.0 12,075.3

153 Yifeng Township Yezhuang Village 453 160.3 13,013.7

154 Yifeng Township Yezhuang Village 61 147.8 1,688.5

155 Yifeng Township Caiyuan 189 60.0 5,277.6

156 Yifeng Township Caiyuan 167 488.4 5,074.7

157 Yifeng Township Lvguai Village 234 376.4 7,316.8

158 Sanyizhai Township Jiahetan 366 531.6 8,326.3

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 159 Sanyizhai Township Jiahetan 288 780.0 6,702.1

160 Sanyizhai Township Houyiwang Village 104 278.3 3,195.7

161 Sanyizhai Township Laowenzhong 269 301.9 6,626.5

162 Sanyizhai Township Xilaowen 157 17.8 3,346.3

163 Yifeng Township Baikou Village 406 511.2 12,588.9

164 Sanyizhai Township Dinggedang 60 158.5 1,712.0

165 Sanyizhai Township Dinggedang 157 518.4 4,736.5

166 Sanyizhai Township Yanggedang 108 60.6 2,535.9

167 Sanyizhai Township Zongzhai 209 324.1 5,774.6

168 Sanyizhai Township Yanggedang 467 1,015.0 12,806.0

169 Xiaosong Township Guodian 118 136.0 3,142.8

170 Nanzhang Town Sunqiao 147 12.4 3,830.1

171 Nanzhang Town Liuzhai Village 434 351.0 10,559.6

172 Nanzhang Town Jiangzhuang 187 298.6 4,037.5

173 Nanzhang Town Jiangzhuang 370 618.2 8,892.6

174 Nanzhang Town Liuzhai Village 60 13.8 1,492.4

175 Nanzhang Town Wangzhuangzhai 401 500.5 10,277.0

176 Nanzhang Town Sizhai Village 360 75.8 8,999.0

177 Nanzhang Town Houzhai 117 18.1 3,451.0

178 Nanzhang Town Nanzhuang 112 117.5 3,129.9

179 Nanzhang Town Huli 139 99.6 3,682.0

180 Nanzhang Town Liubao Village 150 111.6 2,294.0

181 Nanzhang Town Nanguozhuang 241 10.5 5,522.3

182 Nanzhang Town Shuanglou Village 411 912.8 10,124.2

183 Nanzhang Town Shizhuang 158 813.0 4,498.0

184 Nanzhang Town Shizhuang 224 264.0 5,259.0

185 Nanzhang Town Peizhai 571 1,388.5 13,543.0

186 Nanzhang Town Houzhai 251 279.9 6,031.3

187 Nanzhang Town Zhangguanzhuzhai 24 18.3 192.0

188 Nanzhang Town Zhangguanzhuzhai 585 1,346.1 12,855.5

Households Medium Low collected No Town/ Township Village pressure pressure with gas pipeline pipeline pipeline 189 Nanzhang Town Huli 288 442.9 7,998.5

190 Nanzhang Town Dudong 181 489.6 4,008.9

191 Nanzhang Town Wangmaodian 184 326.0 5,145.0

192 Nanzhang Town Wangmaodian 220 614.5 4,733.5

193 Nanzhang Town Shizhuang 52 182.0 1,335.0

194 Nanzhang Town Shizhuang 220 543.6 5,309.0

195 Nanzhang Town Zhangguanzhuzhai 54 153.3 1,418.3

196 Nanzhang Town Shizhuang 162 410.0 4,580.0

197 Nanzhang Town Xiaozhuang 264 399.0 6,453.0

198 Nanzhang Town Xuwa 626 619.8 14,225.0

199 Nanzhang Town Southguozhuang Chenyuanzi 276 25.8 7,078.0

200 Nanzhang Town Dulouxi Village 418 445.0 10,593.0

201 Nanzhang Town Dudong 566 1,141.9 14,643.4

202 Yanlou Township Yannan Village 284 136.0 6,402.5

203 Guyang Town Duanzhuang 365 921.0 8,941.0

204 Guying Town Zhongmingxi 76 1,116.1 2,189.4

205 Kaocheng Town Nanwangzhuang 79 93.6 2,313.5

206 Kaocheng Town Ruanzhai 101 487.7 2,492.2

207 Kaocheng Town Ruanzhai Village 247 555.8 6,454.2

208 Kaocheng Town Nanli Village 142 458.0 3,638.0

209 Yanlou Township Dongwangzhuang Community 54 9.0 881.8

Total 68,460 119,099.0 1,747,903.8

30. The medium pressure pipelines within the 13 towns and townships will be two types: the buried pipelines will be polyethylene pipelines; and the overhead pipelines will be steel pipelines.

31. The low pressure pipelines outside the households will be steel pipes and the pipelines within the household will be steel pipelines and polyethylene-aluminum composite pipelines.

32. Besides, the subproject will install 530 regulation boxes in the 13 towns and townships and 68,460 gas meters for the 68,460 HHs.

33. The pressure in the medium pressure pipelines will be 0.4 MPa. After the regulation boxes, the pressure in the low pressure pipelines will be less than 0.01 MPa.

34. Pipe jacking technology will be adopted to minimum the excavation activities. There are substantial environmental benefits to be gained by the use of pipe jacking techniques when compared with the traditional open trench approach. Typically the ‘trenchless’ method will reduce the quantities of incoming and outgoing materials, with a consequent reduction in tipping of spoil and quarrying of imported stone fill. This in turn leads to reduced vehicle movements and subsequently less associated disruption. In many cases use of pipe jacking techniques instead of open trenching will contribute positively towards workplace safety, the interface with the general public, and the local and wider environment.

35. During operation, the subproject will provide gas to 68,460 HHs annually and the annual gas consumption of the subproject is estimated to be 17,241,651 m3 (the daily gas consumption of 1 HH is 0.69 m3).

36. During construction, the subproject will source power from the grid and municipal water as domestic water and construction water. Due to the subproject scale, work camps will be no necessary and the workers will live in the rented houses near the subproject sites.

37. The domestic wastewater from the construction workers will be discharged to existing septic tanks for treatment. The construction wastewater will be generated from pipeline cleaning and test. The construction wastewater will be settled then recycled to spay the nearby areas for dust control or water the plants.

38. Solid waste generated during construction will be domestic waste and construction waste. Construction waste will be spoil generated during pipeline installation and will be backfilled. Domestic waste will be collected, transferred and treated by local sanitary department.

39. During operation, domestic wastewater and domestic waste will be generated. Domestic wastewater from the operation staff will be discharged to existing septic tanks for treatment. Domestic waste will be collected, transferred and treated by local sanitary department.

C. Associated and Existing Facilities

40. The project due diligence considered two types of facilities per ADB’s SPS: (i) associated facilities – those which are not funded by the project but whose viability and existence depend exclusively on the project and whose operation and services are essential for the successful operation of the project; and (ii) existing facilities – those which are already established and will be necessary for the project operations, but whose operation does not depend on the project and therefore do not meet the SPS definition of associated facility. These existing facilities are not part of the project scope and will not be subject to any ADB-funded construction, operation, upgrade, rehabilitation, or other activities. For completeness, due diligence was conducted for both associated and existing facilities.

41. The project involves one existing facility- Zhuaguxian gas station of Kaifeng Xina Gas Company, which will provide the gas to the subproject. Zhuaguxian gas station was developed in July 2013. The DEIA of the gas station was approved by Kaifeng EEB in 2012. It has a designed capacity of 20,000 m3/h. Now Zhuaguxian gas station mainly provide gas to Lankao urban with a capacity of 5,500 m3/h, and the remaining capacity was 145,500 m3. The designed gas demand of the subproject will be 1,968.2 m3/h, thus, the gas demand of the subproject can be meet. The gas of the Zhuaguaxian gas station is from Zhongyuan Gas Lankao Distribution Station with a designed capacity of 600,000 m3/d and Zhuaguxian gas station is the unique gas consumer, which means the gas supply of Zhuaguxian gas station can be guaranteed.

IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) A. Location and Setting

42. Lankao County is located at the northeast of Henan Province. Lankao County has an area of 1,116 km2 and a population of 859,100. Lankao County has 5 towns, 8 townships and 3 streets. Lankao County belongs to Kaifeng City and is a county administrated by Henan Province. Lankao County is located at the flood plain of Yellow River. Its neighboring Minquan County and Qi County of Shangqiu City in the south, Dongming County and Cao County of Shandong Province in the Northeast. It is around 100 km from Zhengzhou, the capital of Henan Province. Lankao County is between the east longitude of 114°47‘ to 114°50‘ and north latitude of 34°48‘ to 35°50‘.

B. Henan Province Overview

43. Henan is a landlocked province of China, in the central part of China. Henan is a birthplace of Chinese civilization, with over 3,000 years of recorded history and remained China's cultural, economic and political center until approximately 1,000 years ago.

44. Henan Province is home to many heritage sites which have been left behind, including the ruins of Shang dynasty capital city Yin and the Shaolin Temple. Four of the Eight Great Ancient Capitals of China, Luoyang, Anyang, Kaifeng and Zhengzhou, are in Henan.

45. With an area of 167,000 km2, Henan covers a large part of the fertile and densely populated North China Plain. Its neighboring provinces are Shaanxi, Shanxi, Hebei, Shandong, Anhui, and Hubei. Henan is China's third-most populous province with a population of over 94 million.

46. Henan is the 5th-largest provincial economy of China in 2019 and the largest among inland provinces. However, per capita GDP is low compared to other eastern and central provinces.

47. Henan is one of the less-developed areas in China economically. The economy continues to grow based on aluminum and coal prices, as well as agriculture, heavy industry, tourism and retail. High-tech industries and service sector are underdeveloped and are concentrated around Zhengzhou and Luoyang.

48. Henan has a diverse landscape with floodplains in the east and mountains in the west. Much of the province forms part the densely populated North China Plain, an area known as the "breadbasket of China". The Taihang Mountains intrude partially into Henan's northwestern borders from Shanxi, forming the eastern edge of Loess Plateau. To the west the Xionger and Funiu Mountains form an extensive network of mountain ranges and plateaus, supporting one of the few remaining temperate deciduous forests which once covered all of Henan. The renowned Mount Song and its Shaolin Temple is located in the far east of the region, near the capital city Zhengzhou. To the far south, the Dabie Mountains divides Hubei from Henan. The Nanyang Basin, separated from North China Plain by these mountains, is another important agricultural and population center, with culture and history distinct from the rest of Henan and closer to that of Hubei's. Unlike the rest of northern China, desertification is not a problem in Henan, though sandstorms are common in cities near the Yellow River due to the large amount of sand present in the river. At 2413.8 meters above sea level, the highest point in Henan province is Laoyachanao.

49. Henan has a temperate climate that is humid subtropical (Köppen Cwa or Cfa) to the south of the Yellow River and bordering on humid continental (Köppen Dwa) to the north. It has a distinct seasonal climate characterised by hot, humid summers due to the East Asian monsoon, and generally cool to cold, windy, dry winters that reflect the influence of the vast Siberian anticyclone.

Temperatures average around the freezing mark in January and 27 to 28 °C in July. A great majority of the annual rainfall occurs during the summer.

50. Henan is divided into seventeen prefecture-level divisions: all prefecture-level cities; along with one directly administered county-level city (a sub-prefecture-level city).

51. Henan has some of the most advanced transportation system in China due to its flat terrain and its location at the heart of central China's construction boom. The Jingguang and Longhai Railway, the nation's two most important railways, run through much of the province and intersects at Zhengzhou. Other railway hubs such as Shangqiu, Xinxiang, and Luohe have also become important centers of trade and manufacturing as a result. Henan also has good high-speed railway system due to its location. Henan's expressway system is highly developed and the total length is approximately 5,000 km, the highest total for any Chinese province.

C. Topography and Geology

52. The landform of Lankao County is mainly made up of plains. The terrain slopes from the west into the east with a slope of 1/5000. At the north of Yellow River, the land is mainly bottom land; at the south of Yellow River and north of Yellow River’s old canal, the land is mound, hills and inland inundation areas of swale; at the south of Yellow River’s old canal, the land is sandy waste land, inland inundation areas and saline-alkaline fields.

53. The terrain of Lankao County is general flat (Figure IV-1). The altitudes of Lankao County are between 57-75 m. The peak point of Lankao County is Yangqidang Village of Sanyizhai Township and the bottom point is Lijiatan Village of Nanzhang Town. The terrain is mainly plain, with some hills.

54. The soil in Lankao County is mainly divided into sandy soil and two-combined soil, which belongs to moisture soil type, are two main soil kinds in this area and these kinds of soil are lack of organic matters; in addition, there are a few saline soil and Aeolian sandy soil, with thick soil layer and alkaline nature.

55. The PRC classifies seismic intensity into 12 grades under the China Seismic Intensity Table (GB/T 17742-2008) based on the severity of “shaking” of the earth's surface and the extent of potential impacts. According to the China Seismic Ground Motion Parameters Zoning Map (GB18306-2015), the project area is relatively stable with a basic seismic intensity of Grade 6, a peak ground acceleration of 0.05 g, a 10% probability of exceedance in 50 years, and a return period of 475 years. The Grade 6 seismicity intensity will be applied for the design and construction project facilities as per the requirements of the Code for Seismic Design of Buildings (GB 5011-2010).

Figure IV-1: Lankao County Terrain Source: Google map

D. Climate

56. The climate of Lankao County is dominated by a humid subtropical climate. The annual mean temperature is about 14.0°C. The annual mean precipitation for Lankao County is about 678.2 mm and shows no significant change over 2009-2020. The daily mean, maximum and minimum temperatures are the highest in July and the lowest in January in Lankao County. The daily precipitation at Lankao County is higher from June to August than those of other months. During the flood season from June to September, the rainfall accounts for 57% of the whole year, up to 71.2% in some years. Temperature and rainfall data are presented in Figure IV-2. On average, there are 218 frost-free days per year. The annual mean relative humidity is 81%. The annual mean sunshine duration is 2,529.7 hours. The annual mean wind speed is 2.8 m/s. The prevailing wind direction is from north or northeast in winter, while south in summer.

Source: https://www.worldweatheronline.com/lankao-weather-history/henan/cn.aspx Figure IV-2: Temperature and rainfall data for Lankao County, 2009 to 2020

57. Hydrology. Lankao County is rich in water sources. The main river system is the Yellow River system and Huai River system. Drainage area of Yellow River is located at the north of Yellow River with an area of 149.28 km2. Drainage area of Huai River system in Lankao Count is 966.92 km2. The rivers in the county are mostly rain-sourced seasonal rivers, and the canals are mostly irrigation canals from the Yellow River. Natural rivers and irrigation channels from the Yellow River are intertwined vertically and horizontally. There are Sanyizhai, Beitan, Guying and other agricultural irrigation areas in Lankao County which source irrigation water from the Yellow River through canals.

58. Lankao County has many sand groundwater layers and good groundwater runoff conditions. The ground water quality is good. The groundwater at 60-80m is salt water, and the rests are fresh water. According to the vertical distribution characteristics of the aquifer in Lankao County and the actual situation of groundwater exploitation in Lankao County, the aquifers can be divided into shallow aquifers (depth is above 60m), middle aquifer (depth is 60-300m), deep aquifer (depth is 300-600m).

59. Annual average surface water resource of Lankao County from 1956-2012 is 77.44 million m3 and underground freshwater resource is 169.43 million m3. The total water resource is 246.87 million m3. The per capita water resource is only 287.4 m3

60. Floods are the most frequent and serious climate hazard in Lankao, with heavy rains being the main cause during the flood season. Flood disasters are frequent. Since the beginning of this century, there have been 6 major flood disasters in 12 years, once every 2 years on average. The flood control standard of the Danjiang River section does not adapt to the level of local economic and social development, which seriously restricts the sustainable development of the local economy and society.

E. Ecological Values

61. Lankao County is located at the east of Yellow River. Due to the diversion of the Yellow River in the past, the original vegetation in Lankao County was removed and the main vegetation in Lankao County was secondary vegetation. Woody plant in Lankao consists of more than 30 species including paulownia, elm, willow, robinia pseudoacacia etc. Lankao is famous as hometown of paulownia. Shrubs in Lankao County consist of periploca sepium bunge, tamarix chinensis, amorpha fruticose. Herbaceous plant consists of cultivated plants including corn, wheat, soybean, cotton and peanut and wild plants. Wild plants in Lankao County consist of 33 families and 147 species and most of which are grass plants. Fauna consists of more than 300 species of animals, including weasel, owl, snake, hedgehog, hare. There are Class I national protected rare animals (e.g., great bustard, siamese crocodile) and Class II national protected area rare animals (e.g., raccoon, giant salamanders, kestrel, otus scops, short-eared owl) and Class III national protected area rare animals (e.g., Chinese pond-heron, egret, grey heron, cattle egret) in Lankao County.

62. Land types in the project area. The pipeline of the subproject is located within the residential area and agricultural area. No cultural heritage or archaeological sites have been documented in the project area. No protected rare animals or plants have been documented in the project area.

Figure IV-3:Typical land in the project area

63. There are several ground water drinking water wells near the subproject sites: Xuhe Township Ground Drinking Water Well (1 well), Nanzhang Town Ground Drinking Water Wells (2 wells) and Zhuaying Township Ground Drinking Water Well (1 well). The protection zones of the wells are a 40m area around the wells based on the Lankao County’s notice on drinking water source protection area zoning plan (http://www.lankao.gov.cn/info/1087/22547.htm). Based on the domestic EITs, the subproject works will not occur in the protection zones of the wells.

F. Social and Economic Conditions

64. Lankao County has 5 towns, 8 townships and 3 streets. Lankao County belongs to Kaifeng City and is a county administrated by Henan Province. Gross domestic product (GDP), average income and expenditure are shown below.

Table IV-1: Summary of GDPs and Incomes in 2019 (CNY) Administrative Region GDP (billion CNY) GDP per Capita PRC 99,086.5 70,892 Henan 5,425.92 56,388 Lankao County 38.987 44,807

65. Lankao county has finally been removed from a list of “impoverished counties”, by the end of 2018.

G. Environmental quality

66. The environmental monitoring includes the environmental baseline qualities of (i) surface water qualities of the rivers near the subprojects; (ii) groundwater qualities near the subprojects; (iii); and (iii) baseline noise at the villages near the subprojects.

a) Surface water quality

67. During the domestic EIA preparation, surface water sampling was conducted by the DEIA Institute at the canals near the subproject in September 2018. The monitoring data was presented in Table IV-2. Based on Table IV-2, the surface water quality of the rivers in Lankao canal can’t meet

37 the PRC’s Class III standard (there are no World Bank EHS guidelines). The reason for the non- compliance is the domestic wastewater pollution. Besides, based on information from Kaifeng EEB, the surface water quality of Yellow River in Lankao County can meet PRC’s Class III standard (there are no World Bank EHS guidelines) and the link is http://sthjj.kaifeng.gov.cn/index.php/Home/News/index/cate/31.html .

Table IV-2: Surface water quality of Lankao canal unit: mg/L Standard Section Item Concentration range Limit (Class III) compliance pH 8.18-8.24 6-9 Yes CODcr 32-37 ≤20 No BOD5 7.5-9.3 ≤4 No Lankao TN 6.28-7.17 ≤1 No canal Permangnate index 3.1-3.4 ≤6 Yes NH3-N 0.41-0.62 ≤1.0 Yes TP 0.11-0.16 ≤0.2 Yes Fecal coliform 190-240 ≤10000 Yes

b) Groundwater quality

68. Groundwater sampling and analysis was carried out by the DEIA Institute at the 4 wells near the subproject int September 2018 (Table IV-3 to Table IV-5). Quality of groundwater complies with the Grade III of Groundwater Quality Standard of GB/T14848-2017 (there are no World Bank EHS guidelines).

Table IV-3: Groundwater quality at Nanzhang Town wells Ratio of exceedance Standard Section Item Concentration range Limit of limit compliance pH 7.16-7.52 6.5-8.5 0 Yes Ammonia nitrogen 0.024-0.085 ≤0.50 0 Yes DO 0.31-0.92 ≤3.0 0 Yes Sulfate 21.5-40.1 ≤250 0 Yes Chloride 3.53-12.64 ≤250 0 Yes Nitrate 2.19-6.26 ≤20.0 0 Yes No. 1 Cadmium 0.0005L ≤0.005 0 Yes well Chromium VI 0.004L ≤0.05 0 Yes Arsenic 0.001L ≤0.01 0 Yes Lead 0.2L ≤0.01 0 Yes Nickel 0.005L ≤0.02 0 Yes Copper 0.05L ≤1.0 0 Yes Zinc 0.05L ≤1.0 0 Yes pH 7.16-7.32 6.5-8.5 0 Yes Ammonia nitrogen 0.044-0.058 ≤0.50 0 Yes DO 0.71-0.82 ≤3.0 0 Yes Sulfate 15.9-22.19 ≤250 0 Yes Chloride 0.99-1.5 ≤250 0 Yes Nitrate 1.89-2.79 ≤20.0 0 Yes No. 2 Cadmium 0.0005L ≤0.005 0 Yes well Chromium VI 0.004L ≤0.05 0 Yes Arsenic 0.001L ≤0.01 0 Yes Lead 0.2L ≤0.01 0 Yes Nickel 0.005L ≤0.02 0 Yes Copper 0.05L ≤1.0 0 Yes Zinc 0.05L ≤1.0 0 Yes

Note: ND means no detection and L means detection limit

Table IV-4: Groundwater quality at Xuhe Township well Ratio of Concentration Standard Section Item Limit exceedance range compliance of limit pH 7.28~7.93 6.5-8.5 0 Yes Ammonia nitrogen 0.030~0.059 ≤0.50 0 Yes Nitrate 0.462~0.871 ≤20.0 0 Yes DO 1.0~1.6 ≤3.0 0 Yes Arsenic ND ≤0.01 0 Yes Chromium VI ND ≤0.05 0 Yes No. 1 Lead ND ≤0.01 0 Yes well Cadmium ND ≤0.005 0 Yes Sulfate 12.8~10.6 ≤250 0 Yes Chloride 0.198~0.307 ≤250 0 Yes Copper ND ≤1.0 0 Yes Zinc ND ≤1.0 0 Yes Nickel ND ≤0.02 0 Yes Note: ND means no detection and L means detection limit

Table IV-5: Groundwater quality at Zhuaying Township well Ratio of Concentration Standard Section Item Limit exceedance range compliance of limit pH 7.01-7.05 6.5-8.5 0 Yes Total hardness 327-334 ≤450 0 Yes Ammonia nitrogen 0.042-0.049 ≤0.50 0 Yes Sulfate 4.72-5.03 ≤250 0 Yes Chloride 2.31-3.02 ≤250 0 Yes Total coliform group ﹤2 ≤3.0 0 Yes No. 1 Volatile phenol 0.0003L ≤0.002 0 Yes well Chromium VI 0.004L ≤0.05 0 Yes Lead 0.0025L ≤0.01 0 Yes Zinc 0.05L ≤1.00 0 Yes Cadmium 0.0005L ≤0.005 0 Yes Manganese 0.01L ≤0.1 0 Yes Copper 0.005L ≤1.00 0 Yes Arsenic 0.001L ≤0.01 0 Yes Note: ND means no detection and L means detection limit.

c) Air quality

69. Annual average ambient air quality in the project area in 2019. According to the “Environmental Quality Report of Kaifeng City in 2019, the pollutants SO2, NO2, CO and O3 met the Grade II of the PRC Ambient Air Quality Standard of GB3095-2012.

Table IV-6: Ambient Air Quality in Urban Area in 2018 and 2019 (mg/m3) Monitoring results (annual average) District/county SO2 NO2 PM10 CO O3 PM2.5 Kaifeng City (2019) 15 23 87 0.7 152 58 160(8- Grade II Standard value of GB3095-2012 60 40 70 4 35 hour)

Standard compliance Yes Yes No Yes Yes No

70. The ambient air quality monitoring was conducted during the domestic EIA preparation. Monitoring was undertaken continuously over a 7 days period from March 3 to 9, 2018 for CO, SO2 and NO2 (1-hour average concentrations), and TSP, PM10, PM2.5, SO2 and NO2 (24-hour average concentration). The monitoring methods are presented in Table IV-7.Meteorological parameters such as wind direction, wind speed, air temperature, barometric pressure and cloud cover were also monitored. The monitoring was conducted at Xichenzhai Village, Hecunji Village, Xiaosong Village, Zhuanxiangmiao, Lvguai Village and Dulouxi Village.

Table IV-7: Air quality monitoring methods Reference Pollutants Method Detection limit standard Formaldehyde absorbing- 1-hour mean: 0.007 mg/m3 SO2 HJ/T482-2009 pararosaniline 24-hour mean: 0.004 mg/m3 spectrophotometric method 1-hour mean:0.005 mg/m3 NO2 HJ/T479-2009 Saltzman method 24-hour mean:0.003 mg/m3 GB/T15432- TSP Gravimetric method 0.001mg/m3 1995

3 PM10 HJ 618-2011 Gravimetric method 0.010 mg/m

3 PM2.5 HJ 618-2011 Gravimetric method 0.010 mg/m Non-dispersive infrared CO GB/T9801-1988 0.3mg/m3 spectrometry Nessler's reagent colorimetric NH3 HJ 533-2009 0.05mg/m3 method GB/T 14675- Odor Triangle odor bag method 10 1993 Source: Domestic EIA.

Table IV-8: Air quality monitoring results

Exceedance of national Sample No. 1-hour mean 24-hour mean standards /WHO No. Item concentration concentration guidelines, % 1-hour 24-hour rage rage 24-hour 1-hour mean mean mean mean SO2 28 7 0.034 - 0.092 0.045-0.058 0/NA 0/100 NO2 28 7 0.022-0.059 0.029-0.040 0/0 0/NA CO 28 — 1.0-3.7 — 0/NA — 1 PM2.5 — 7 — 0.065-0.114 — 71.4/100 PM10 — 7 — 0.124-0.201 — 57.1/100 TSP — 7 — 0.225-0.354 — 57.1/NA SO2 28 7 0.027-0.105 0.046-0.065 0/NA 0/100 NO2 28 7 0.022-0.065 0.030-0.047 0/0 0/NA CO 28 — 0.9-4.0 — 0/NA — 2 PM2.5 — 7 — 0.069-0.118 — 71.4/100 PM10 — 7 — 0.120-0.199 — 42.9/100 TSP — 7 — 0.224-0.354 — 57.1/NA SO2 28 7 0.026-0.092 0.040-0.056 0/NA 0/100 3 NO2 28 7 0.021-0.065 0.026-0.049 0/0 0/NA CO 28 — 0.4-3.5 — 0/NA —

SO2 28 7 0.030-0.095 0.050-0.063 0/NA 0/100

NO2 28 7 0.021-0.062 0.027-0.045 0/0 0/NA 4 CO 28 — 0.6-3.3 — 0/NA — PM2.5 — 7 — 0.055-0.097 — 71.4/100 PM10 — 7 — 0.107-0.175 — 42.9/100 TSP — 7 — 0.204-0.302 — 14.3/NA SO2 28 7 0.029-0.096 0.051-0.072 0/NA 0/100 NO2 28 7 0.020-0.059 0.032-0.051 0/0 0/NA CO 28 — 1.0-3.3 — 0/NA — 5 PM2.5 — 7 — 0.072-0.125 — 85.7/100 PM10 — 7 — 0.119-0.209 — 57.1/100 TSP — 7 — 0.223-0.348 — 42.9/NA SO2 28 7 0.028-0.108 0.046-0.069 0/NA 0/100 NO2 28 7 0.020-0.067 0.033-0.048 0/0 0/NA CO 28 — 1.0-4.0 — 0/NA — 6 PM2.5 — 7 — 0.071-0.113 — 85.7/100 PM10 — 7 — 0.123-0.199 — 71.4/100 TSP — 7 — 0.219-0.335 — 42.9/NA Source: Domestic EIA.

71. The data show that all 24-hour average SO2, NO2 concentrations and 1-hour average SO2, NO2, PM10 and PM2.5 concentrations were in compliance with the relevant PRC ambient air quality standard, Class II of Ambient Air Quality Standards (GB3095-2012). 24-hour average PM10, PM2.5 and TSP concentrations were not in compliance with relevant PRC standard. 76.2% of PM2.5, 59.5% of PM10 and 40.5% of TSP 24-hour concentrations exceeded relevant standard and the worst case PM2.5, PM10 and TSP concentration were 1.67, 1.39 and 1.19 times of relevant standard respectively.

72. The results show that air quality in the project area is poor, with 24-hour mean concentrations of PM10, PM2.5 and TSP exceeded PRC standards.

d) Acoustic environment

73. The noise baseline monitoring, conducted by DEIA Institute from July 7 to July 8 2018, includes the baseline noise at the near the project site. The results in Table IV-9 show that noise baseline at all points met the Class II standards and Class II standards of EHS guidelines.

Table IV-9: Noise monitoring data Unit: dB(A) Monitoring result Monitoring Standard No. Location July 7, July 8, Limit time compliance 2018 2018 Daytime 47.5 49.6 60 Yes 1 Guying Town Nighttime 40.3 41.2 50 Yes Daytime 50.3 51.2 60 Yes 2 Kaocheng Town Nighttime 43.5 44.6 50 Yes

Daytime 53.5 52.6 60 Yes 3 Guyang Town Nighttime 43.3 44.5 50 Yes Daytime 47.8 49.5 60 Yes 4 Hongmiao Town Nighttime 42.3 41.6 50 Yes Daytime 47.1 45.2 60 Yes 5 Nanzhang Town Nighttime 40.5 39.3 50 Yes Daytime 51.5 52.2 60 Yes 6 Mengzhai Township Nighttime 43.6 44.5 50 Yes Daytime 52.6 51.8 60 Yes 7 Xiaosong Township Nighttime 43.8 44 50 Yes Daytime 46.3 38.2 60 Yes 8 Batou Township Nighttime 47.2 39.4 50 Yes Daytime 43.5 37.1 60 Yes 9 Sanyizhai Township Nighttime 42.6 35.8 50 Yes Daytime 50.3 53 60 Yes 10 Yifeng Township Nighttime 43.5 44.8 50 Yes Daytime 53.1 50.3 60 Yes 11 Xuhe Township Nighttime 42.6 42.5 50 Yes Daytime 49.5 51.0 60 Yes 12 Putaojia Township Nighttime 41.2 42.2 50 Yes Daytime 51.5 52.6 60 Yes 13 Yanlou Township Nighttime 43.6 46.3 50 Yes

e) COVID-19 outbreak

74. From January 28 to December 26, 2020, 26 confirmed cases were found in Kaifeng, of which 26 recovered. As of November 2020, no new cases have been found since February. All the 26 confirmed cases were cured before March. Even so, Lankao County is required to follow the PRC and Henan Province requirements to strictly control monitor human movements within, and in and out of, the county. At the train stations and bus stations, body temperature scanners were installed. Persons who enter Lankao County via all methods (car, train, plane, bus) are required to provide a Health Code, which has been assigned by the PRC’s State Council’s APP for each person, to demonstrate that the persons have not visited the medium-risk or high-risk areas in last 14 days (these areas are updated and published on a daily basis by the State Council). If the persons have visited medium risk or high-risk areas in last 14 days without negative nucleic acid detection certification, the person cannot enter Lankao County or is allowed to enter Lankao County after 14 days’ quarantine with negative nucleic acid detection certification.

75. Lankao County also implemented COVID-19 prevention and control measures following the PRC and Henan Province’s requirements, including disinfection/cleaning of public space, temperature checks at entrances of facilities, social distancing measures, mandatory use of personal protective equipment such as facemasks and procedures to be adopted in the event any person is infected with COVID-19.

76. The project EMP includes the requirement for a COVID-19 health and safety plan to address health risks. An outline and minimum requirements for the plan are given in Appendix 2, based on international and national guidelines.

V. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Project Area of Influence and Sensitive Receptors

77. To define the geographic scope of the impact assessment, the “project area of influence” and “sensitive receptors” were identified. The project area of influence was defined as the total area which might be subject to adverse impacts of the project. This was based on the locations of sensitive receptors, defined as settlements and/or environmental values that might be affected by the project construction and/or operation. The receptors comprise (i) villages and communities potentially subject to construction or operational noise, air pollution, and/or environment-related social impacts; (ii) public service facilities vulnerable to disturbance or pollution; and (iii) vegetation, fauna habitats, and agricultural lands within 200 m of the construction work sites.

78. The following distances were applied to identify the sensitive receptors: (i) for construction noise – receptors within 200 m of the noise-generating source; (ii) for construction-related air quality impacts – receptors within 200 m of the sources. These distances, combined with the direct construction sites, were assumed to encompass the total project area of influence.

79. Based on the characteristics of the proposed subcomponents, the environmental features of each project site were investigated by the domestic EIA Institute. The sensitive receptors related to the project are identified and summarized in Table V-1.

Table V-1: Environmentally Sensitive Receptors of the subproject

No Town/ Township Village Households

1 Mengzhai Township Beisong Village 313

2 Mengzhai Township Daliji Village 446

3 Mengzhai Township Caozhuang Village 555

4 Mengzhai Township Sunyingxi Village 503

5 Xiaosong Township Qulou Village 342

6 Xiaosong Township Guodian Village 651

7 Xiaosong Township Kongzhuang Village 402

8 Xiaosong Township Jiazhai Village 315

9 Xiaosong Township Nanyuan Village 293

10 Xiaosong Township Shaogangsan Village 497

11 Yifeng Township Jinzhuang Village 263

12 Yifeng Township Xierlizhai Village 330

13 Yifeng Township Dongerlizhai Village 240

14 Yifeng Township Jinzhuang Village 102

15 Yifeng Township Zhangzhai Village 162

16 Yifeng Township Dongangtou Village 81

No Town/ Township Village Households

17 Yifeng Township Donggangtou Village 121

18 Yifeng Township Lizhai Village 134

19 Yifeng Township Gengzhuang Village 263

20 Yifeng Township Lizhai Village 156

21 Yifeng Township Donggangtou Village 552

22 Yifeng Township Sanhezhuang Village 52

23 Yifeng Township Zhangzhai Village 67

24 Yifeng Township Zhangzhai Village 67

25 Yifeng Township Xiezhuang Village 581

26 Yifeng Township Sanhezhuang Village 781

27 Yifeng Township Shiwu Village 183

28 Yifeng Township Yujiayuan Village 202

29 Yifeng Township Quantou Village 700

30 Hongmiao Town Chengzhuang Village 545

31 Hongmiao Town Beicun Village 143

32 Hongmiao Town Xiliuchenpu Village 472

33 Hongmiao Town Tiwanxi Village 454

34 Hongmiao Town Xinzhuang Village 149

35 Hongmiao Town Tiwandong Village 406

36 Hongmiao Town Gezhai Village 321

37 Hongmiao Town Dongliuchenpu Village 480

38 Sanyizhai Township Wuzhuang Village 215

39 Sanyizhai Township Xichenzhai Village 413

40 Sanyizhai Township Zhaolou Village 301

41 Sanyizhai Township Zhanglou Village 332

42 Sanyizhai Township Houzhai Village 301

43 Yifeng Township Weizhai Village 231

44 Yifeng Township Yifeng Village 495

45 Yifeng Township Daizhai Village 436

46 Yifeng Township Taipeng Village 102

No Town/ Township Village Households

47 Yifeng Township Dongzhuang Village 478

48 Yifeng Township Tushan Village 739

49 Sanyizhai Township Xuzhuang Village 289

50 Sanyizhai Township Houjianzhuang Village 262

51 Sanyizhai Township Tangguzhai Village 444

52 Sanyizhai Township Qianjianzhuang Village 298

53 Sanyizhai Township Youfangying Village 322

54 Hongmiao Town Qizhuang Village 296

55 Hongmiao Town Shuangyangshu Village 401

56 Hongmiao Town Bailou Village 296

57 Dongbatou Township Nanbei Village 196

58 Dongbatou Township Nanbei Village 149

59 Dongbatou Township Nanbei Village 877

60 Mengzhai Township Sunyingdong Village 311

61 Mengzhai Township Wanglou Village 117

62 Xiaosong Township Zhangzhuangzhai Village 447

63 Xiaosong Township Zhaizhuang Village 484

64 Xiaosong Township Xutang Village 383

65 Xiaosong Township Dongshaogang Village I 338

66 Xiaosong Township Xishaogang 716

67 Xiaosong Township Dongshaogang Village II 262

68 Putaojia Township Nanjiapo 130

69 Putaojia Township Hecunji 121

70 Putaojia Township Zhaoduolou 67

71 Putaojia Township Zhaizhuang 211

72 Putaojia Township Zhaoduolou Village 243

73 Putaojia Township Huangzhai Village 377

74 Putaojia Township Hecunji 197

75 Putaojia Township Hanxiangpo Village 138

76 Putaojia Township Hecunji Village 449

No Town/ Township Village Households

77 Putaojia Township Wangdapiao 638

78 Hongmiao Town Miaotai Village 290

79 Hongmiao Town Qianbailou 517

80 Hongmiao Town Wangzhuang Village 333

81 Hongmiao Town Tuling Village 555

82 Hongmiao Town Xiawuying 347

83 Sanyizhai Township Laoqiezhuang 479

84 Sanyizhai Township Yangpizhai 432

85 Sanyizhai Township Mengdong 303

86 Dongbatou Township Zhuzhuang Village 511

87 Dongbatou Township Hanli Village 511

88 Dongbatou Township Shuangjing Village 468

89 Dongbatou Township Leixinzhuang 573

90 Mengzhai Township Malinzhai 209

91 Nanzhang Town Chuanli Village 549

92 Nanzhang Town Zhaizhuang, Wanggaozhuang 394

93 Nanzhang Town Qianchengzi 394

94 Nanzhang Town Dailichen 292

95 Nanzhang Town Songzhuang 512

96 Nanzhang Town Zhouzhuang 80

97 Nanzhang Town Lvzhuang 503

98 Nanzhang Town Houchengzi 447

99 Nanzhang Town Songzhuang 199

100 Nanzhang Town Sunqiao 247

101 Nanzhang Town Guochongdou 373

102 Nanzhang Town Songzhuang 259

103 Yifeng Township Batou Village 363

104 Yifeng Township Huzhai Village 262

105 Yifeng Township Chenlou 329

106 Yifeng Township Qinzhai 255

No Town/ Township Village Households

107 Yifeng Township Donghao Village 244

108 Sanyizhai Township Kangzhai Village 306

109 Hongmiao Town Paifang Village 169

110 Hongmiao Town Maocaozhuang 242

111 Sanyizhai Township Kangzhai 546

112 Sanyizhai Township Qianyiwang 213

113 Sanyizhai Township Kangzhai 167

114 Sanyizhai Township Caoxinzhuang 552

115 Dongbatou Township Mengfang 118

116 Dongbatou Township Mengfang 208

117 Dongbatou Township Lichang Village 368

118 Dongbatou Township Gaozhai 491

119 Dongbatou Township Zhu'an 680

120 Xiaosong Township Wangfuqiao Village 213

121 Xiaosong Township Yuanzhuang Village 447

122 Xiaosong Township Luozhai 109

123 Xiaosong Township Zhangbicai East Village 725

124 Xiaosong Township Xi’nan Village 308

125 Xiaosong Township Xicun 405

126 Xiaosong Township Tangzhai 690

127 Xiaosong Township Wanghu Village 395

128 Xiaosong Township Luozhai 327

129 Xiaosong Township Xiaosong Village 649

130 Xiaosong Township Xiaosong Village 401

131 Hongmiao Town Kongzhuang 278

132 Hongmiao Town Qinglonggang 444

133 Hongmiao Town Kongzhuang Village 119

134 Hongmiao Town Kongzhuang Village 234

135 Hongmiao Town Guanchang Village 606

136 Hongmiao Town Puying Village 1201

No Town/ Township Village Households

137 Hongmiao Town Lizhuang Village 550

138 Hongmiao Town Fanzhuang 630

139 Hongmiao Town Daizhuang 1192

140 Putaojia Township Chenbukou 152

141 Putaojia Township Chenbukou 136

142 Putaojia Township Pingfang Village 151

143 Putaojia Township Lizhai Village 160

144 Putaojia Township Zhuanxiangmiao 461

145 Putaojia Township Hanxiangpo Village 331

146 Putaojia Township Houyangzhuang 227

147 Putaojia Township Wangzhuang Village 565

148 Putaojia Township Pingfang Village 200

149 Putaojia Township Duzhai Village 275

150 Putaojia Township Tushanzhai 646

151 Putaojia Township Putaojia New Community 92

152 Putaojia Township Hezhuang 411

153 Yifeng Township Yezhuang Village 453

154 Yifeng Township Yezhuang Village 61

155 Yifeng Township Caiyuan 189

156 Yifeng Township Caiyuan 167

157 Yifeng Township Lvguai Village 234

158 Sanyizhai Township Jiahetan 366

159 Sanyizhai Township Jiahetan 288

160 Sanyizhai Township Houyiwang Village 104

161 Sanyizhai Township Laowenzhong 269

162 Sanyizhai Township Xilaowen 157

163 Yifeng Township Baikou Village 406

164 Sanyizhai Township Dinggedang 60

165 Sanyizhai Township Dinggedang 157

166 Sanyizhai Township Yanggedang 108

No Town/ Township Village Households

167 Sanyizhai Township Zongzhai 209

168 Sanyizhai Township Yanggedang 467

169 Xiaosong Township Guodian 118

170 Nanzhang Town Sunqiao 147

171 Nanzhang Town Liuzhai Village 434

172 Nanzhang Town Jiangzhuang 187

173 Nanzhang Town Jiangzhuang 370

174 Nanzhang Town Liuzhai Village 60

175 Nanzhang Town Wangzhuangzhai 401

176 Nanzhang Town Sizhai Village 360

177 Nanzhang Town Houzhai 117

178 Nanzhang Town Nanzhuang 112

179 Nanzhang Town Huli 139

180 Nanzhang Town Liubao Village 150

181 Nanzhang Town Nanguozhuang 241

182 Nanzhang Town Shuanglou Village 411

183 Nanzhang Town Shizhuang 158

184 Nanzhang Town Shizhuang 224

185 Nanzhang Town Peizhai 571

186 Nanzhang Town Houzhai 251

187 Nanzhang Town Zhangguanzhuzhai 24

188 Nanzhang Town Zhangguanzhuzhai 585

189 Nanzhang Town Huli 288

190 Nanzhang Town Dudong 181

191 Nanzhang Town Wangmaodian 184

192 Nanzhang Town Wangmaodian 220

193 Nanzhang Town Shizhuang 52

194 Nanzhang Town Shizhuang 220

195 Nanzhang Town Zhangguanzhuzhai 54

196 Nanzhang Town Shizhuang 162

No Town/ Township Village Households

197 Nanzhang Town Xiaozhuang 264

198 Nanzhang Town Xuwa 626

199 Nanzhang Town Southguozhuang Chenyuanzi 276

200 Nanzhang Town Dulouxi Village 418

201 Nanzhang Town Dudong 566

202 Yanlou Township Yannan Village 284

203 Guyang Town Duanzhuang 365

204 Guying Town Zhongmingxi 76

205 Kaocheng Town Nanwangzhuang 79

206 Kaocheng Town Ruanzhai 101

207 Kaocheng Town Ruanzhai Village 247

208 Kaocheng Town Nanli Village 142

209 Yanlou Township Dongwangzhuang Community 54

Total 68,460

B. Pre-construction Phase

80. The following measures will be implemented in the engineering design and pre-construction phase to ensure the project’s environment management readiness. (i) Siting and Land Acquisition. The subproject will not result in any involuntary land acquisition, resettlement or physical displacement, only temporary land occupation will be occurred during construction. There will be no loss of personal property, structures, crops, trees or other assets. There are also no potential adverse impacts on disadvantaged or vulnerable groups, including the poor, women and children, and Indigenous Peoples (ii) Institutional strengthening. (a) The PMO has appointed a full-time and qualified environment officer in the PMO team. This officer will lead the coordination of the EMP; (b) the PIU will each assign one full-time, qualified environment and social officer as part of the PIU team; and (c) under the loan consulting services, the PMO will hire a loan implementation environment specialist (LIEC) to provide external support. (iii) Safety measures for COVID-19. Prior to the arrival of external project personnel (e.g., workers and consultants), the PMO will implement safety procedures and screening to ensure that all staff are tested negative for COVID-19 and do not pose a threat to local human populations. This will include: (i) external workers and consultants confirm their COVID-19 – free status to PIU prior to arrival, and (ii) project safety and sanitation measures are distributed to all personnel and are included as contractual requirements for all staff. (iv) Updating the EMP. In case of any changes in the detailed project design, the EMP will be updated as needed, including the mitigation measures and monitoring plan. This will be the responsibility of the PMO, PIU, and LIEC. (v) Training in environmental management. The LIEC will give training in the implementation and supervision of environmental mitigation measures to contractors and the construction

supervision companies (CSCs). (vi) Grievance Redress Mechanism (GRM). The PMO and PIU will implement the project GRM at least two months before the start of construction to ensure that the related residential communities, villages, schools and hospitals are well informed and have the opportunity to discuss any concerns. This is further to the public consultations already conducted during project preparation (Section VII). (vii) Bidding documents and contract documents. The project environment management plan (Appendix 1) will be included in all the bidding documents and contracts for procurement of civil works, goods and services. All contractors and subcontractors will be required to comply with the EMP. (viii) Contractor obligations. All contractors, in their bids, will respond to the environmental clauses in the bidding documents for EMP requirements. Prior to construction, each contractor will develop its site EMP, based on the project EMP (Appendix 1), and assign at least a specific person responsible for the environment, health and safety (EHS). The site EMP shall at least include the following: (a) surface water and ecosystem protection; (b) spill control and management; (c) site drainage and soil erosion protection; (d) temporary traffic management; (e) construction site access control; (f) health and safety; (g) all site- specific mitigation measures listed in the project EMP; (h) contractor performance targets; and (i) safety measures for coronavirus disease (COVID-19), which are listed in the EMP, to strengthen the implementation of the mitigation measures. The site EMPs will be submitted to the PMO environment officer and PIU environment officers for approval, with the support from the EEBs of Lankao County. (ix) Environmental management on construction sites. Ensure that during construction, the PMO and PIU environment officers, together with environmental supervision engineers from CSCs, will be responsible for enhancing site supervision, management and appraisal, for timely identification and resolving any issues. Intermittent follow-up training during construction will be conducted. (x) Permitting. All necessary permits have been obtained from the relevant authorities prior to construction.

C. Construction Phase

81. Potential impacts during the construction phase could include air pollution, noise, water pollution, solid waste and poor community and occupational health and safety practices. Potential air quality impacts could occur due to fugitive dust generated at construction sites from construction activities and construction machineries. Construction activities will generate wastewater and construction workers will produce wastewater. Wastewater generation is expected to be limited considering the nature and scale of construction. Construction works will produce construction waste. Workers will face occupational health and safety issues working on construction sites. Potential impacts are assessed and addressed below. Identified impacts can be readily addressed through the application of good construction site practices.

a) Impacts to Flora and Fauna

82. Typical construction impacts on flora and fauna include removal of vegetation and disruption of the ecosystem during construction. If present, rare or endangered flora or fauna may also be impacted. However, the construction sites are located in residential and agricultural environments with little or no vegetation cover other than recently established grasses and shrubs. It is therefore unlikely that there will be direct impacts on natural lands or ecological values from construction.

83. Based on site visits, there is no known rare or endangered flora or fauna, parks, nature reserves or areas with special ecological significance which will be impacted by the component.

Impacts on flora or fauna are thus expected to be minimal and short-term. Nonetheless, to address potential impacts, any existing greening areas impacted by the subproject will be restored post- construction using appropriate native species.

b) Erosion and Spoil

84. Construction activities such as land leveling, excavation and filling activities may lead to surface erosion. The most vulnerable soil erosion areas in the construction site include excavation sites. Soil erosion can also be more serious on slopes or near water bodies, though based on site visits all construction sites are generally flat and there are no rivers, streams, ditches or lakes that are likely to be affected. Soil erosion can also occur after the completion of construction if site restoration is inadequate. Pipeline excavation and burial may also cause localized erosion and mudding of adjacent road. Finally, construction activities may generate surplus spoil.

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

86. The following mitigation measures for soil erosion and contamination will be adopted through good project and construction management practices.

(i) During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. (ii) Spoil will be covered with landscape material and/or regularly watered. (iii) Construction activities will be limited or halted during periods of rains and high winds. (iv) Pipe jacking technology will be adopted to minimum the excavation activities. (v) Pipelines will be installed and backfilled in a sequenced section-by-section approach. Open excavation areas during trenching activities will be minimized, and appropriate construction compaction techniques utilized. Spoil will be 100% backfilled as soon as possible. (vi) Once construction is complete disturbed surfaces will be properly restored.

87. Measures for disposal of surplus spoil. In the event that surplus spoil cannot be re-used and must be disposed of, the disposal sites will be selected based on compliance with the following criteria: (i) situated as close as possible to the works sites, to minimize transport costs, vehicle emissions, and risks associated with more distant transport of spoil, e.g., vehicle accidents, dislodging of spoil onto roads, and inadvertent transfer of invasive species or disease vectors, (ii) located at least 500 m from the rivers and wetlands, to avoid impacts to river banks or siltation after rainfall, (iii) avoidance of any protected areas, wetlands, waterways, flood retention areas, or other sensitive receptors, (iv) compliance with land zoning for appropriate land use, and (v) compliance approvals issued by the EEB and Urban Administration Bureau, subject to their site inspections and endorsement prior to any disposal of project surplus spoil.

88. Inspection and monitoring. Site inspections and monitoring will be conducted by the contractors, CSCs, PMO, LIEC, and external environment monitoring agency

c) Water quality

89. Inappropriate disposal of domestic wastewater (from construction workers) or construction wastewater (from drainage of washing construction equipment and vehicles, and oil-containing wastewater from machinery repairs) may cause soil or groundwater resources contamination.

90. Construction wastewater will be produced from the cleaning of pipeline. It is unlikely that runoff from site will reach distant water bodies, however to guard against runoff and infiltration

52 impacting the immediately surrounding areas the contractors shall ensure that runoff from site will not reach distant water bodies.

91. Construction wastewater. Construction wastewater will be produced from pipeline cleaning and maintenance and cleaning of mechanical equipment and vehicles during the construction period, which is discharged as pollutants. If discharged in an improper manner, this has the potential to impact the existing water bodies.

92. Domestic wastewater from construction workers. The average workforce is estimated to be 120 workers in the project area (the construction sites are numerous and scattered). Daily domestic wastewater discharge production is estimated as 0.06 m3 per worker per day. The pollutant concentrations of CODcr, BOD5 and NH3-N in the domestic wastewater from the construction workers are assumed to be 200 mg/L, 100 mg/L and 20 mg/L, respectively. Estimated volumes of 3 construction and domestic wastewater are 7.2 m /d and the CODcr, BOD5 and NH3-N in the domestic wastewater will be 1.44 kg/d, 0.72 kg/d and 0.144 kg/d respectively. According to the DEIA, 100% of the workers will live in rented rooms in nearby villages and/or communities. Therefore the majority of domestic sewage will be discharged through the existing sewer network for treatment. All domestic wastewater will be discharged to the sewer network, i.e., the domestic wastewater generated by construction workers will not cause any new water pollution.

93. To prevent pollution of water resources, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D, will be implemented. (i) Contractors will develop relevant measures on controlling the oil and other chemicals as part of their site EMPs. (ii) Wastewater from construction activities such as pipeline cleaning will be collected in sedimentation tanks, then recycled to spay the nearby areas for dust control or water the plants. (iii) Domestic wastewater will be discharged to municipal sewer system for treatment. (iv) All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. (v) Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. All construction machinery will be repaired and washed at special repairing shops. (vi) Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces and provided with sorbent mats and cleanup installations. (vii) Contractors’ fuel suppliers must be properly licensed, who shall follow proper protocol for transferring fuel and the PRC standard of JT618-2004 (Transportation, Loading and Unloading of Dangerous or Harmful Goods. revised).

d) Air quality

94. Air pollution sources include: (i) dust from earth excavation, filling, uncovered construction areas, and vehicle movements on unpaved roads, especially in windy days; (ii) vehicle and machinery emissions (gaseous CO, hydrocarbon and NO2) during works; and (iii) exhaust gas from welding.

95. Fugitive dust will be generated on construction sites during earthworks from construction activities, uncovered earth material stockpiles on construction sites and temporary spoil storage and disposal areas (and containers), and from vehicles hauling loads, especially if loads are uncovered. The EIA predicts unmitigated compliance with the Ambient Air Quality Standard (GB3095-1996) at 150 m downwind of TSP generating activities or locations. With mitigation measures such as frequent watering of unpaved areas and haul roads (7–8 times each day), the EIA estimates that the

53 amount of dust could be reduced by 70% or more and the impact area be reduced to within 100 m downwind of earthwork activities. Impacts will be short-term and localized, and in line with typical construction works that occur daily in cities throughout the PRC and the world.

96. To reduce air quality impacts during the construction period, the following air quality management measure and construction good practice as set out in EHS Guidelines on C&D will be implemented. (i) Spraying of water daily on construction sites where fugitive dust is being generated. (ii) The spoil generated during construction will be covered with dustproof screen. (iii) Transport vehicles will be limited to low speeds in construction sites. (iv) Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. (v) Transport routes and delivery schedules will be planned to avoid densely populated and sensitive areas, and high traffic times (vi) Store petroleum or other harmful materials in appropriate places and cover to minimize fugitive dust and emission (vii) Provide regular maintenance to vehicles in order to limit gaseous emissions (to be done off-site) (viii) Ensure vehicle and machinery emissions comply with PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, and GB18285-2005. (ix) Disturbed site will be revegetated as soon as possible after the completion of works. (x) Provide appropriate personal protective equipment (PPE) to workers to minimize risks, including ear protection for high-noise environment and masks for welding (xi) Timely monitoring of air quality and inspections during construction, as defined in the project EMP (EMP).

e) Noise

97. The construction phase will result in increased noise levels and sudden and discontinuous vibration impacts. Construction will involve excavators, bulldozers, graders, concrete-mixers, rollers, and other heavy machinery. Construction noise will be temporary and localized. Estimated construction noise values (at 5 m distance from the machinery and vehicles) are in Table V-2.

Table V-2: Testing Values of Construction Machinery Noise No. Machine Type Maximum Sound Level Lmax (B) 1 Excavator 85-95 2 Heavy truck 88-93 (speed up), 84-89 (steady speed) 3 Medium-duty truck 85-91 (speed up), 79-85(steady speed) 4 Drilling machine 96

98. Estimation of noise levels. The construction equipment generates noise as a point source. The predictive model applied in this project is:

Ri Li = L0 − 20lg − ∆L R0 Where, Li and L0 are equipment noise levels at Ri and R0, respectively. ΔL is additional diffusion attenuation produced by barriers, vegetation and air.

99. As for the impact of multiple construction machineries on a certain future position, superposition of the sound level is needed:

× = Σ 0.1 Li L 10lg 10 100. Prediction results. Noise levels at different distances were derived after calculating the impact scope of equipment noise during construction, as defined in Table V-6. The PRC Standard of Noise Limits for Construction Sites (GB12523－2011, revised) specifies the noise limit in Class II areas as 70 dB (A) during daytime and 55 dB (A) during nighttime. The standard compliance noise impact scope (m) of different machineries is listed in Table V-3.

Table V-3: Noise Values of Construction Machineries at Different Distances [dB(A)] Distance to Machinery Machinery Name 15m 20m 40m 60m 80m 100m 130m 150m 200m Excavator 71 69 63 59 57 55 53 51 49 Heavy truck 69 67 61 57 55 53 51 49 47 Drilling machine 72 70 64 60 57 56 54 52 50 70 (daytime) Grade II of GB12523－2011 55 (nighttime) 55 (daytime for residential and institutional area); 70 (daytime for industrial and commercial area) World Bank EHS Guideline 45(nighttime for residential and institutional area); 70 (nighttime for industrial and commercial area) Source: DEIA Institute, PMO Consultant

101. These values were compared with the locations of the sensitive receptors to see which villages would be within 40 m of construction works which exceed daytime noise levels of 70 dB(A), the threshold applied to this project under PRC standard GB12523-2011. To be conservative, no attempt was made to distinguish between noise emissions from different types of construction activity i.e. any works within 40 m of villages and residences were assumed to generate noise levels exceeding the threshold and so require management.

102. Mitigation measures. The following measures will be implemented to comply with PRC construction site noise limits and to protect sensitive receptors.

(i) Construction activities will be planned in consultation with local authorities and communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in the least disturbance. (ii) Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EPB and other relevant departments. And nearby residents should be notified of such night time activities well in advance. (iii) Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise. (iv) Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines. (v) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (vi) Vehicles transporting construction materials or waste will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (vii) Special attention will be paid to protect sensitive sites near the component site: High noise construction activities will be positioned as far away from sensitive sites as possible.

(viii) Noise from cleaning of pipelines will be minimized by utilization of low noise valves, mufflers after the valves and sound insulation.

f) Solid waste

103. The solid waste generated will comprise construction and domestic waste, and include packaging materials and waste generated during pipeline installation and cleaning. The average workforce is estimated at 120 workers in total (the DEIA). Daily domestic solid wastes production is estimated as 0.5 kg per worker per day (60 kg/d in total). 100% of the workers will live in rented houses in nearby villages. Assuming the average construction days in a year is 270, the estimated domestic waste generated by the project is 16.2 tons in 1 year construction.

104. The following measures will be undertaken to manage construction and worker waste. (i) Littering by workers will be prohibited. (ii) Domestic waste containers will be used for domestic waste collection at construction sites. Domestic waste will be collected on a regular basis by the local sanitation departments and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. (iii) Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. (iv) There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. (v) Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil that remain on the site after construction.

g) Ecology

105. Vegetation and flora. The vegetation clearing in the project area will mainly result from laying of pipelines. The vegetation to be removed during works comprises secondary growth of trees and shrubs and other common species. None of these species is on the PRC local or provincial list of protected species, nor are these species of concern on the IUCN list.

106. Impacts on fauna. Risks to fauna during construction include: (i) pollution of aquatic habitats (rivers, streams) from construction wastewater (oils, fuels) and/or domestic wastewater from workers, which may impact fish as well as amphibians and aquatic invertebrates; and (ii) noise and visual disturbance to birds, mammals, reptiles, and/or amphibians. Mitigation measures have been developed to avoid and reduce the risk of water pollution. Noise and visual disturbance will be temporary. Based on this analysis, the location of work sites, documented ecological values, and modified nature of most sites, the risk of ecological impacts by the project is assessed to be low. The following mitigation measures will also be implemented for ecological protection.

107. Protected areas. There are several ground water drinking water wells near the subproject sites: Xuhe Township Ground Drinking Water Well (1 well), Nanzhang Town Ground Drinking Water Wells (2 wells) and Zhuaying Township Ground Drinking Water Well (1 well). The protection zones of the wells are a 40m area around the wells based on the Lankao County’s notice on drinking water source protection area zoning plan (http://www.lankao.gov.cn/info/1087/22547.htm). Based on the domestic EITs, the subproject works will not occur in the protection zones of the wells.

108. The following mitigation measures will be applied for all works in all sites, to avoid, minimize, and mitigate risks to ecological values.

(i) Clearance of vegetation will be restricted to specific construction sites. (ii) Prior to construction, vegetation and habitats will be clearly demarcated as no-go zones for workers and machinery. (iii) Cleared sites will be immediately re-vegetated afterward. (iv) All plantation activities under the landscaping activities will only use native plant species. In the event that non-native seedlings are required for rapid stabilization of exposed soils and sites, only sterile seedlings (i.e., which cannot propagate) will be used, to prevent the spread of weeds. (v) To reduce the risk of spreading weeds, pest animals, and/or soil-based organisms, the project will: (a) prohibit the use of any plant species classified in the PRC as weeds – including native species – as defined by the Research Center for Biological Prevention and Control of Alien Invasion (Ministry of Agriculture and Rural Affairs) and Institute of Plant Protection (Chinese Academy of Agricultural Sciences), available at http://www.chinaias.cn/wjPart/index.aspx

h) Community and worker health and safety

109. Construction may cause unexpected interruptions in public services and utilities because of damage to pipelines for water supply and drainage, as well as to power cables and communication cables. Roads in the project areas are mainly narrow mountain roads, and the risk of traffic accidents may increase with construction traffic. Contractors will implement the following EMP measures to reduce risks to community health.

i) Traffic management. A traffic management plan will be prepared by the contractor. The plan will include provisions for diverting or scheduling construction traffic, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed. ii) Underground facilities survey and protection. Pipeline construction activities will be planned so as to minimize disturbances to utility services. If any utilities are disturbed by the construction activities, they will be rectified immediately by the contractor in coordination with the utility provider. During this rectification period, the users will be provided with alternatives such as the provision of water supply through tankers if the water supply pipes are broken. iii) Information disclosure and public consultation. Villagers, residents, and businesses will be informed in advance through media, information boards, and public consultations (Section VII), including the dates, duration, and scope of planned works. iv) Construction site protection. Clear signs will be placed at construction sites in view of the public, informing people about the project GRM, and warning people against potential dangers such as moving vehicles, hazardous materials, and excavations, and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate. v) Excavated sites and protection. Pipeline construction activities will be planned so as to minimize disturbances to utility services. Open trenches will be fenced and cordoned off to prevent access by the general public and reduce the risk of persons accidentally falling in.

i) Occupational health and safety

110. The construction industry is considered to be one of the most hazardous industries. Intensive use of heavy construction machinery, tools, and materials present physical hazards, including noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, and chemical hazards such as toxic fumes and vapors. Contractors will each prepare an environmental, health and safety management plan (Table EMP-2 of Appendix 1), which will include the following. (i) Provide a clean and sufficient supply of freshwater for construction sites and rented houses. (ii) Provide an adequate number of portable on-site latrines at construction sites and rented houses

and ensure that they are cleaned and maintained in a hygienic state. (iii) Waste receptacles at construction sites will be set up, which will be periodically cleared to prevent the outbreak of diseases. (iv) Provide personal protective equipment to comply with PRC regulations, e.g., safety boots, helmets, gloves, protective clothing, goggles, earplugs. (v) Emergency preparedness and response plan for accidents and emergencies, including environmental and public health emergencies associated with hazardous material spills and similar events. These plans will be submitted to the local EEBs for review and approval. Emergency phone link with hospitals in the project area will be established. A fully equipped first-aid base in each construction camp will be organized. (vi) A records management system that will store and maintain easily retrievable records against loss or damage will be established. It will include documenting and reporting of occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits. (vii) Occupational health and safety matters will be given a high degree of publicity to all work personnel and posters will be displayed prominently at construction sites. (viii) All workers will be given basic training in sanitation, general health and safety matters, and work hazards. An awareness program for HIV/AIDS and other communicable diseases will be implemented for workers and the local communities. (ix) Core labor standards will be implemented. Civil works contracts will stipulate priorities to: (i) employ local people for works; (ii) ensure equal opportunities for women and men; (iii) pay equal wages for work of equal value and pay women’s wages directly to them; and (iv) not employ child or forced labor. Specific targets for employment have been included in the project gender action plan. (x) COVID-19 health and safety plan. The project EMP will include a coronavirus (COVID-19) health and safety plan to address COVID-19 health risks. The plan will be prepared in line with government regulations and guidelines on COVID-19 prevention and control, and in consultation with public health agencies in the area. The plan will include (i) measures to record the locations that workers have visited/lived immediately before and during project work; (ii) schedules for disinfecting/cleaning offices, and rented labor houses; (iii) measures to implement temperature checks and other health checks on-site; (iii) physical distancing measures, particularly in rented houses camps; (iv) requirements for mandatory use of personal protective equipment such as facemasks, and provision of handwashing stations, hand sanitizers, and other appropriate protective measures; (v) how workers and residents living near project sites will be provided with information to protect themselves from COVID-19; (vi) procedures to be adopted in the event a worker is suspected of having contracted COVID-19; and (vii) other COVID-19 prevention and control measures appropriate for the local context.

111. It is expected that these risks can be effectively managed through the implementation of the EMP, including mitigation measures, capacity building, inspection, supervision, and reporting.

j) Physical cultural resources

112. No cultural heritage or archaeological sites are known from the project area. However, construction activities have the potential to disturb unknown underground cultural relics. The Henan Provincial Government issued the “Regulation for strengthening the management of cultural relics” on 4 August 2017, which states: The project implementing agency shall report to Henan Provincial Administration of Cultural Relics in advance, and the cultural relics discovered during the construction shall be reported in a timely manner and effective protection measures shall be taken. The cost for any archaeological survey, exploration or excavation required for construction shall be included in the project budget.” The EMP mitigation measures include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. Local Cultural

Heritage Bureaus and the PMO will be promptly notified. Construction will resume only after investigation and with the permission of the appropriate authority. The clause for protection of unknown underground cultural relics will be included in construction contracts. k) Socioeconomic impacts

113. The project activities are located close to communities in urban area, towns and villages. Construction works may cause unexpected interruption to municipal services, e.g., in case of unintended damage to pipelines or transmission lines for water, drainage, gas, and/or electricity. Altered traffic flows and increased occurrence of slow-moving heavy vehicles may cause traffic jams and delays. These impacts will be localized and temporary. They will be managed through ongoing consultations with communities during construction (as well as operation), that will build on the consultations conducted during project preparation (Section VII), and measures for community health and safety, including a traffic management plan. These measures are included in the project EMP (Appendix 1).

114. Access to Public Services, Private Properties. Temporary access to affected private properties, businesses and public service buildings were provided including temporary crossings over pipeline trenches, and subsequently good quality permanent access were provided too.

D. Operation Phase

115. Key operational risks assessed were: (i) domestic waste and wastewater from the operation staff; (ii) gas leakage risk. All facilities will be under the management of the PIU. The PIU will develop operation and maintenance (O&M) procedures for the subproject and provide training to the staff.

a) Solid waste

116. The following mitigation measures will be applied.

(i) Domestic waste bins will be provided and domestic waste will be routinely collected by the local sanitation department for recycling, if possible, or final disposal at an approved waste disposal site; (ii) Solid waste generated during operation especially maintenance will be recycled as much as possible; (iii) Hazardous waste generated during maintenance will be collected, transported and treated by a certified 3rd party hazardous waste treatment company.

b) Wastewater

117. The following mitigation measures will be applied. (i) Domestic waste water will be discharged to existing municipal sewage system for treatment.

c) Occupational Health and Safety 118. The following mitigation measures will be applied. (i) Operation phase EHS plan will be developed and implemented and workers will be trained regularly on their implementation; (ii) PPE including goggles, gloves, and safety shoes will be provided to workers; (iii) Training will be provided to workers on occupational health and safety, and emergency response and regularly drilled; (iv) During operation, the transferred gas will be filled with additives (tetrahydrothiophene) to warn the nearby persons of the leakage; and (v) During operation, routine inspection will be implemented by the staff with leakage detection

equipment. If gas leakage is found by the staff, the leakage information will be reported to the PIU including the gas leakage location and the PIU will implement the measures in the emergency response plan such as valves shut down, inform of nearby communities and villages and maintenance of pipelines. (vi) COVID-19 prevention and control measures will be strictly implemented following the PRC and Henan Province requirements.

d) Community Health and Safety 119. The following mitigation measures will be applied. (i) The subproject will prepare emergency response plan based on relevant PRC laws and regulation; (ii) The nearby communities and villages will be informed of the potential risks and the emergency response plan.

e) Emergency Response Plan 120. An emergency risk and response plan will be established by the PIU in accordance with the “National Environmental Emergency Plan” (24 January 2006) and other relevant PRC laws, regulations and standards and measures in the World Bank EHS guidelines with respect to occupational and community health and safety. The nearby communities and villages will be informed of the potential risks and the emergency response plan. The emergency response plan will include: (i) organization and responsibilities; (ii) hazard levels of the potential risks; (iii) emergency response procedures for all the roles in the plan including on-site staff, PIU staff responsible for the emergence response; (iv) measures to be implemented;(v) reporting requirements; and (vi) training and drill requirements.

E. Anticipated Positive Operation Phase Impacts

121. Energy savings from the fuel switch are presented in Table V-4.

Table V-4: Energy savings from the fuel switch

Useful Energy savings Fuel Energy Consumption tce Efficiency energy(tce) (tce) NG 10,000Nm³ 13.3 66% 8.778 Coal 22.82 tons 16.30 35% 8.778*0.65 8.30 LPG 3.09 tons 5.30 58% 8.778*0.35

Note: Residents use 65% of coal and 35% of LPG for cooking

122. The emission factors of coal, gas and LPG for cooking are presented in Table V-5 . Based on the Table V-4, consumption of 10,000Nm³ gas will (i) result in annual energy savings equivalent to 8.30 tce; (ii) avoid the annual emission of 18.96 tons of CO2; (ii) improve local air quality through the estimated annual reduction of emissions of SO2 by 265.92 kg, NOx by 54.72 kg, and PM by 158.06 kg. Table V-5: Pollutants emission factors of different fuels

Fuel NOx (kg/tce) SO2 (kg/tce) PM (kg/tce) CO2 (ton/tce)

NG 0.12 0.3 1.46 2.688 Coal 2.6 16.5 159.53 2.436

LPG 2.63 0.175 0 2.831

123. The subproject will provide gas to 68,460 HHs annually and the annual gas consumption of the subproject is estimated to be 17,241,651 m3. When compared to the equivalent traditional fuel consumption (coal and liquefied natural gas (LNG), once operational the subproject will: (i) result in annual energy savings equivalent to 14,309.0 tce, thereby providing a global public good by avoiding the annual emission of 32,685.47 tons of CO2; (ii) improve local air quality through the estimated annual reduction of emissions of SO2 by 458.5 tons, NOx by 94.4 tons, and PM by 272.5 tons; and (iii) eliminate the negative impacts of coal transportation by truck or train.

VI. ALTERNATIVE ANALYSIS 124. An analysis of subproject alternatives was undertaken during the feasibility stage to determine the most financially and technically feasible way of achieving the project objectives while minimizing environmental and social impacts.

A. No Project Alternative

125. The greater BTH region is one of the major strategic industrial and commercial zones that generates around one-third of the gross domestic product in the PRC. This region has witnessed around 8% of annual growth of gross domestic product while heavily depending on the use of coal as the primary source of energy for residential, commercial, and industrial purposes, resulting in serious and extensive air pollution. To tackle this problem in 2013, the PRC launched the first Comprehensive Action Plan for Air Pollution Prevention and Control (CAAP) 2013–2017 that aimed to improve air quality in the region. The CAAP’s successful implementation has led to lower concentration of particulate matter less than 2.5 micrometer in diameter (PM2.5) by 39.6%, from 105 micrograms per cubic meter (μg/m3) in 2013 to 64 μg/m3 in 2017. To further air quality improvement, the government also issued the Three-Year Action Plan to Win Blue Sky War (2018–2020) in June 2018. It includes policy actions to accelerate (i) closing of heavily polluting industries; (ii) reducing surplus production capacity in industries; (iii) shifting to less air polluting transportation modes; and (iv) building cleaner and less air polluting energy systems to reduce air pollutant emissions by more than 15% for nitrogen oxide (NOx), sulfur dioxide (SO2), and more than 18% for PM2.5 as compared with the emission level in 2015.

126. Henan province in the greater BTH region is one of the largest populated and the heaviest coal dependent province in the PRC. Whereas the province has good access to the major national natural gas transmission pipelines, such an advantage in natural gas access has not been fully utilized for air pollution reduction in the greater BTH region. In 2018, the province’s primary energy was highly dependent on coal which accounted for around 72.0% of the primary energy as compared with the national average of 59.0%. While Henan province has reduced its dependence on coal from 84.3% in 2010, it is still one of the major contributors of air pollution in the greater BTH region. Since coal burning is the major source of air pollution in the province, the provincial government issued the medium- and long-term energy development plan (2012–2030) that holds strategic target to increase natural gas supply for reducing coal dependency in primary energy use to 65% by 2023 and 58% by 2030. In 2014, it also issued Henan Blue Sky Action Plan (2014– 2017) to curve emissions of particulate matter less than 10 micrometer in diameter (PM10) by 15% and PM2.5 by 10% as compared with the emission level in 2012. In spite of successful achievement of its emission reduction targets in 2017, Henan province recorded its air pollutant emissions in terms of PM2.5 (62 3 3 3 3 μg/m ), PM10 (106 μg/m ), SO2 (21 μg/m ), and NOx (41 μg/m ) in 2018, all of which are far above the national air quality category I standard, and of the World Health Organization standard.3 In 2018, the Three-Year Action Plan for Henan Province to Combat Blue Sky War (2018–2020) was issued, that includes comprehensive policy actions in coal consumption reduction, energy efficiency promotion, renewable energy deployment, and emission reduction from transportation source, to (i) 3 3 reduce PM2.5 to 58 μg/m by 2020, and (ii) achieve 35 μg/m of the national air quality category II standard by 2023.

127. To provide province-wide gas access, the provincial government initiated the cleaner fuel switch investment program, which aims to establish county-based distributed gas supply and targets to reach 4.5 million customers in 80 of the less developed and geographically scattered counties for accelerating a fuel switch from coal to natural gas and biogas in industry and commercial, and household energy use. Since June 2018, it has already reached 307,078 customers in 10 counties. Upon successful completion of the overall program in 2030, 1,291 million normal cubic meters (Nm3)

62 of cleaner fuel will be supplied annually which results in avoiding 4.17 million tons of annual coal use, thereby 7.29 million tons of carbon dioxide emission, 45,540 tons of SO2, 21,655 tons of PM2.5 emission, and 9,054 tons of NOx emission will be reduced.

128. The subproject’s implementation will: (i) significantly reduce coal consumption; (ii) improve air quality; and (iii) reduce GHG emissions. For these reasons the “no project” alternative is considered unacceptable.

B. Alternative Methods of Pipeline Installation

129. Pipe jacking is an inherently safer method of working than open trench construction or traditional segmental tunneling. When considering the risks associated with deep, large section, open excavations, Health and Safety guidance suggests these risks should be reduced “if appropriate using ‘trenchless’ technology to avoid the need to excavate the trench in the first place”. Given gang size differences between the techniques and the resulting reduction in man-hours, opportunities for accidents to occur are less with pipe jacking. There is also significant reduction in the risk of injury as a result of utility strikes and interface with the public.

130. Pipe jacking technology will be adopted to minize the excavation activities. There are substantial environmental benefits to be gained by the use of pipe jacking techniques when compared with the traditional open trench approach. Typically the ‘trenchless’ method will reduce the quantities of incoming and outgoing materials, with a consequent reduction in tipping of spoil and quarrying of imported stone fill. This in turn leads to reduced vehicle movements and subsequently less associated disruption. In many cases use of pipe jacking techniques instead of open trenching will contribute positively towards workplace safety, the interface with the general public, and the local and wider environment. • Inherent strength of lining • Smooth internal finish giving good flow characteristics • No requirement for secondary lining • Considerably less joints than a segmental tunnel • Prevention of ground water ingress by use of pipes with sealed flexible joints • Provision of invert channels in larger pipes to contain the dry weather flow of a sewer in a combined system • Less risk of settlement • Minimal surface disruption • Minimal reinstatement • Reduced requirement for utilities diversions in urban areas

131. Based on the analysis presented in the above sections, pipe jacking technology will be adopted for pipeline installation.

C. Pipeline Network

132. The subproject will utilize direct-buried pipeline, which is by far the most commonly used technology. The direct buried pipeline will be polyethylene pipe. Compared to other types of pipelines, the polyethylene pipes have the following advantages: (i) long service lifetime; (ii) strong corrosion resistance, thus preservative treatment is not necessary; (iii) low resistance during gas transfer, thus diameter and pipeline cost will be reduced; (iv) good toughness, strong impact resistance; and (v) easy to maintenance and replacement.

D. Overall Alternative Analysis

133. Based on the analysis of alternatives, the subproject has selected the most appropriate and sustainable pipeline installation technology and pipeline type.

VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

A. PRC Requirements

134. Relevant provisions in the PRC Environmental Impact Assessment Law (revised in 2016) and the Regulations on the Administration of Construction Project Environmental Protection (No. 253 Order of the State Council, 1998, revised in 2017) require that an EIA study for a construction project shall solicit opinions from affected residents, as well as other organizations and concerned stakeholders. However, the requirements for public consultation are different for various sectors and projects. For an environmental Category A project a full EIA report is required including two rounds of public consultations, while for a Category B project only a simplified tabular EIA is required without the need for public consultation.

135. The “Provisional Regulations on Public Participation in Environmental Impact Assessment” (2006) promulgated by State Environmental Protection Administration further improved the legislation of public participation in EIA in China. It provides detailed requirements for the public participation process, including information disclosure standards, consultation methods, and public enquiry process. It is significant since it was the first document clearly regulating public participation in EIA in China.7

136. In 2014, former MEE released “Guiding Opinions on Promoting Public Participation in Environmental Protection” (2014, No. 48) which defines public participation as ‘citizens, legal persons and other organizations’ voluntary participation in environmental legislation, enforcement, judicature and law obedience, and the development, utilization, protection and transformation activities related to environment.

137. The public disclosure and consultation process undertaken during the preparation of the domestic EIA was undertaken in compliance with the relevant PRC requirements, including the “Provisional Regulations on Public Participation in Environmental Impact Assessment” (2006) and the “Guiding Opinions on Promoting Public Participation in Environmental Protection” (2014, No. 48).

B. ADB Requirements

138. ADB’s SPS (2009) has specific requirements for information disclosure and public consultation. Information disclosure involves delivering information about a proposed project to the general public and to affected communities and other stakeholders, beginning early in the project cycle and continuing throughout the life of the project. Information disclosure is intended to facilitate constructive engagement with affected communities and stakeholders over the life of the project.

139. The SPS requires that borrowers take a proactive disclosure approach and provide relevant information from environmental assessment documentation directly to affected peoples and stakeholders. In addition, in order to make key documents widely available to the general public, the SPS requires submission to ADB for posting on the ADB website as follows: (i) a draft full EIA (including the draft EMP) at least 120 days prior to ADB Board consideration for Category A projects, and/or environmental assessment and review frameworks before project appraisal, where applicable; (ii) the final EIA/IEE; (iii) a new or updated EIA/IEE, EMP and corrective action plan prepared during project

7 Wang Ya Nan, 2012. Public Participation in EIA, SEA and Environmental Planning in China. Environmental Impact Assessment Research Centre.

implementation, if any; and (iv) environmental monitoring reports.

140. The SPS also requires that the borrower carry out meaningful consultation with affected people and other concerned stakeholders, including civil society, and facilitate their informed participation. Consultations should include presentations on environmental impacts, benefits and mitigation measures, the project GRM, and ADB's Accountability Mechanism. For category A projects, such consultations should include consultations both at an early stage of EIA field work and when the draft EIA report is available.

A. Information Disclosure

141. EIA Institute has undertaken public consultation and information disclosure in accordance with the Interim Guidelines on Public Consultation for EIA (2006) during EIA process. Two rounds of information disclosure are implemented.

142. EIA Institute disclosed the information of the subproject in two steps: The first public information notice was posted on the Lankao Government’s website in June 2019. The information in the first public notification (The link is http://www.lankao.gov.cn/info/1103/20824.htm) is listed below: (i) Name and summary of the component. (ii) Name and contact information of the construction company. (iii) Name and contact information of the institute responsible for preparing the EIA of the component. (iv) EIA procedures and content. (v) Type of EIA notification notice. (vi) Request for questions, suggestions and feedback from the public.

143. A second public information notice was also posted on the Lankao Government’s website at September 2019, prior to the submission of the draft EIA report to the Lankao EEB. The link is http://www.lankao.gov.cn/info/1128/24212.htm. The notice included Project name and information below: (i) Name and summary of the component. (ii) Name and contact information of the institute responsible for preparing the EIA report. (iii) Name and contact information of the institute responsible for approval of the EIA report. (iv) Name and contact information of the construction company. (v) Potential project environmental impacts and mitigation measures during construction phase and operation phase. (vi) Key conclusions of the EIA report. (vii) Contact information to get abridged versions of the EIA report.

144. No public feedback was received during two rounds of public information disclosure.

Information Disclosure on the website of Lankao EEB

B. Public Consultation 145. During the project preparation phase, the public consultations for the project were conducted in the project towns and villages in the form of consultation meetings from June 2019 to August 2019 (Figure VII-1). The consultations targeted beneficiaries and potentially affected persons by the subproject. The consultation meetings were organized by the PMO and PIU. Besides, the consultation meetings were held for public consultation and public awareness improvement. In addition, all information was provided in the Chinese language to ensure accessibility for residents.

146. During the meeting, the PIU introduced the project information; the adverse impacts and beneficial impacts brought to the surrounding environment and residents during construction and operation; and proposed mitigation measures, in a PowerPoint presentation and by the distribution of the DEIA reports. The public meetings were used as an opportunity to: (i) present the main anticipated impacts and the final proposed mitigation measures as defined in the FSR and the DEIA; and (ii) introduce the project GRM.

147. The meetings were attended by 1268 people (744 male and 524 female). The consultation meetings were followed by a questionnaire survey. All the 1268 participants have completed the questionnaire surveys. The breakdown of participants and the results of questionnaire surveys are listed in Table VII-1 and Table VII-2.

Table VII-1: Participants of Public Consultations June 2019 to August 2019 Information of Consulted APs 1268 Valid resp. % Male 744 58.7% Gender Female 524 41.3% <20 26 2.1% Age Group 20-40 326 25.7%

41-60 712 56.2% ≥60 204 16.1% Illiteracy 4 0.3% Primary school 284 22.4% Junior high school 560 44.2% Education Senior high school 264 20.8% Vocational school 116 9.1% College and above 40 3.2% Han 1260 99.4% Ethnic Hui (minority) 8 0.6% Peasant 880 69.4% Civil servant 36 2.8% Occupation Employees 252 19.9% Others 100 7.9%

Public Hearing meeting (Lizhai Village) Public Hearing meeting (Nanyuan Village)

Public Hearing meeting (Guodian Village) Public Hearing meeting (Jiazhai Village)

Figure VII-1: Public Consultation meeting and survey in the project towns

Table VII-2: Results of Questionnaire Survey Name Sex Age Education level Occupation Nationality Contact information Question Choices Yes Comments 1. In your opinion, what are the Ambient air 530 41.8% major environment pollution issues Noise 302 23.8% in your areas? Surface water 574 45.3% Groundwater 300 23.7% Soil 134 10.6% Solid waste 82 6.5% Odor 210 16.6% Risks associated with chemicals and 184 14.5% hazardous chemicals Other concern 16 1.3% 2. Distance between your working <1 km 762 60.1% place and project site 1-3 km 402 31.7% 3-5 km 58 4.6% > 5km 46 3.6% 3. Distance between your house <1 km 742 58.5% and project site 1-3 km 428 33.8% 3-5 km 58 4.6% > 5km 40 3.2% 4. Do you know this project before Yes 1174 92.6% this public consultation? No 94 7.4% 5. Do you understand the potential Clearly understand 470 37.1% adverse impacts during the Somewhat understand 522 41.2% construction of the proposed project Barely understand 260 20.5% subprojects? Do not understand 16 1.3% 6. What would be the major Noise 746 58.8% impacts during project construction? Dust 474 37.4% Solid waste 268 21.1% Traffic congestion 78 6.2% No major impacts 218 17.2% 7. After learning about mitigation Accept 906 71.5% measures during the construction, Barely accept 354 27.9%

do you accept anticipated Do not accept 2 0.2% construction phase impacts? Have no idea 6 0.5% 8. Do you understand all the Clearly understand 470 37.1% anticipated environmental and health Somewhat understand 582 45.9% and safety adverse impacts of the Barely understand 202 15.9% project during operation? Do not understand 14 1.1% 9. What are the major impacts of Air pollution 670 52.8% this project during operation period? Noise pollution 90 7.1% Waste water pollution 218 17.2% Soil pollution 182 14.4% Solid waste pollution 146 11.5% Odor gas 124 9.8% Risks associated with chemicals and 98 hazardous chemicals 7.7% Other concern 26 2.1% 10. Do you accept the adverse Accept 926 73.0% impacts of the project after you Barely accept 334 26.3% understand the mitigation Do not accept 2 0.2% measures? Have no idea 6 0.5% Question Choices 530 11. Do you think construction of this Yes 302 99.5% project can improve local economic No 574 0.2% development or not? I do not know 300 0.3% 12. Do you support the project? Yes 134 99.1% No 82 0.2% I do not know 210 0.8% Suggestions or requirements for environment protection of the project

148. Results of the public consultation. About 92.6% of respondents knew about the project either from other people, newspapers, or information signs. The top three environmental issues respondents identified in their neighborhoods are surface water (45.3%), noise (23.8%), and ambient air (41.8%). About 1.3% of the respondents indicated that they still didn’t understand the adverse impacts of the project during the construction period. Dust (37.4%), solid waste (21.1%) and noise (58.8%) were identified as the top three issues during the construction phase. Solid waste, surface water (39.2%), and odors (36.7%) were identified as the top three issues during the operation phase. These concerns are addressed through the project design features for water conservation and improved agricultural management, and safeguard mitigation measures in the project environmental management plan.

149. Overall support for the project is very strong; 99.5% of the respondents indicated that the project would improve local economic development; and 99.1% indicated that they support the proposed project.

C. Future Information Disclosure and Public Consultation Program

150. Public consultations will be maintained with project communities throughout project implementation, including: (i) before and after key works, to ensure residents are informed of and have the opportunity to respond to, pending works and procedures, (ii) during period broader consultations about project progress. Future consultation will be undertaken by the PMO and implementation units’ Environment and Social Officers, via questionnaire surveys, household visits, workshops, and public hearings (see attached EMP).

VIII. GRIEVANCE REDRESS MECHANISM 151. A project-specific grievance redress mechanism (GRM) was developed in compliance with ADB’s SPS (2009) requirement to address environmental, health, safety, and social concerns associated with project construction and operation. The GRM is designed to achieve the following objectives: (i) provide channels of communication for residents to raise concerns about environmental and social-related grievances which might result from the project; (ii) prevent and mitigate adverse environmental and social impacts to villages and communities caused by project construction and operation, including those associated with resettlement; (iii) promote trust and productive relationships between the project agencies and residents; and (iv) build community acceptance of the project. The GRM is accessible to all residents, including women, youth, minorities, and poverty-stricken households. Multiple points of entry are available, including face-to-face meetings, written complaints, telephone conversations, e-mail, WeChat and social media.

152. Grievances to be addressed by the GRM will most likely be of disturbances e.g. dust emissions, construction noise, soil erosion, pipeline constructions, inappropriate disposal of construction wastes, and/or safety measures for the protection of the public and construction workers. A separate GRM has been designed for the project for issues related to land occupation, as these generally require different procedures and timelines to resolve compared with environmental-related grievances.

153. Currently, in Lankao County (and generally in the PRC), when residents or organizations are negatively affected by construction or development, they may complain, individually or through their village or community committee, to the contractors, developers, the local EEB, or by direct appeal to the local courts. The weaknesses of this system are: (i) the lack of dedicated personnel to address grievances; and (ii) the lack of a specific timeframe for the redress of grievances. This project GRM addresses these weaknesses.

154. The GRM meets the regulatory standards of the PRC that protect the rights of citizens from construction-related environmental and/or social impacts. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Based on the regulation, the Ministry of Environmental Protection (MEE)8 published updated Measures on Environmental Letters and Visits (Decree No. 15) in December 2010.

155. The details of the GRM, including a time-bound flow chart of procedures, are described below.

156. This project grievance redress mechanism (GRM) is a joint GRM for: (i) the initial identification, documentation, and preliminary management of both environmental and social safeguard-related grievances; (ii) the resolving of environmental safeguard-related grievances; and (iii) the resolving of, and/or timely referral of, social safeguard-related grievances. Environmental and social safeguard-related grievances may differ considerably in the nature of grievances and agencies, procedures, and timing required to address them: the GRM provides a simple, time-based mechanism to meet project needs as required. Social safeguard issues beyond the scope of the GRM procedures, including issues related to land acquisition or resettlement, will be referred to relevant agencies as needed.

157. The GRM is designed to achieve the following objectives: (i) provide channels of communication for communities to raise concerns about environmental and social-related grievances which might result from the project; (ii) prevent and mitigate adverse environmental and

8 The new name for the MEP is Ministry of Ecology and Environment.

71 social impacts to villages and communities caused by project construction and operation, including those associated with resettlement through improved awareness; (iii) promote trust between the project agencies and communities; and (iv) build community acceptance of the project. The GRM is accessible to all members of the villages and communities, including women, youth, minorities and poverty-stricken villagers and residents. Multiple points of entry are available, including face-to-face meetings, written complaints, telephone conversations, e-mail, and social media.

158. Environmental and social safeguard-related grievances may differ considerably in the nature of grievances and agencies, procedures, and timing required to address them. The GRM provides a simple, time-based mechanism to meet project needs as required. Social safeguard issues beyond the scope of the GRM procedures, including issues related to land acquisition or resettlement, will be referred to relevant agencies as needed.

159. The PMO Environment Officer and Social Officer and PIU Environment Officers and Social Officers will lead the coordination of the GRM. However, all project agencies and staff will be trained in the GRM and are expected to take an active role for implementing the GRM. At the PMO level, the PMO Environment Officer and PMO Social Officer will establish a GRM tracking and documentation system, conduct daily coordination with the PIU officers, arrange meetings and conduct site visits as necessary, maintain the overall project GRM database, and prepare the reporting inputs for progress reports to ADB. At the PIU level, the environment and social officers will instruct contractors and CSCs on the GRM procedures, and coordinate with the local EEBs and other government divisions as necessary. PMO and PIU staff will be trained and supported by the LIEC and loan implementation social consultant.

160. The contact persons for different GRM entry points, such as the PMO and PIU environmental and social officers, contractors, operators of project facilities, and EEBs, will be identified prior to construction. The contact details for the entry points (phone numbers, addresses, e-mail addresses) will be publicly disclosed on information boards at construction sites and on the websites of the local EEBs.

161. The GRM will be accessible to diverse members of the villages and community, including more vulnerable groups such as women, minority and poor. Multiple points of entry, including face- to-face meetings, written complaints, telephone conversations, or e-mail, will be available.

162. If a complaint is received and filed, the PMO and PIU officers will identify if the complaint is eligible for management under the GRM. Eligible complaints under the GRM include those where: (i) the complaint pertains to the project; and (ii) the issues arising in the complaint fall within the scope of environmental and/or social issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is not project-related; (ii) the nature of the issue is outside the mandate of the GRM (such as fraud or corruption); and/or (iii) other procedures would be more appropriate to address the issue. Ineligible complaints will be documented and provided to the relevant authorities and the complainant will be informed of these steps. The procedure and timeframe for the GRM is as follows and summarized in Figure EMP-1.

• Stage 1 (5 calendar days): If a concern arises during construction or operation, the affected person may submit a written or oral complaint to the contractor (construction phase) or operator of the project facility (operation phase). The contractor will: (i) respectfully acknowledge the issue and immediately stop the causal activity (e.g. on-site construction causing high noise levels to a nearby household); (ii) not resume the activity until the complaint has been resolved; (iii) inform the PIU of the incident on the same day of the incident occurring and how the contractor has responded or will respond; (iv) give a clear reply to the affected person within two calendar days; and (v) as far as possible, resolve the problem within five calendar days from

receiving the complaint. The PIU will: inform the PMO, local village committee, and Ecology and Environment Bureau of the incident within one working day of being informed by the contractor; and, subsequently keep these parties informed at all stages.

• Stage 2 (5 calendar days): If the issue cannot be resolved in Stage 1, after five calendar days, the PIU and/or PMO will take over responsibility. Eligibility of the complaint will be assessed and a recommended solution given to the complainant and contractors within two calendar days. If the solution is agreed by the complainant, the contractors and/or facility operators (in operation) will implement the solution within five calendar days from the PIU or PMO taking over responsibility of the complaint. Written records will be made of all stages and outcomes. At the expiration of Stage 2, PMO will inform ADB of the outcome.

• Stage 3 (10 calendar days): If no solution can be identified by the PMO and/or PIU, and/or the complainant is not satisfied with the proposed solution, the PMO and/or PMO will organize, within seven (7) calendar days, a stakeholder meeting (including the complainant, contractor and/or operator of the facility, EEB, PIU, PMO). A solution acceptable to all shall be identified including clear steps. The contractors (during construction) and facility operators (during operation) will immediately implement the agreed solution. All attempts will be made to fully resolve the issue within 10 calendar days. Written records will be made of all stages and outcomes. At the expiration of Stage 3, PMO will inform ADB of the outcome.

163. The contractor and/or PIU will ensure the affected person is updated at all times, in each stage, of the progress toward resolving the grievance. The GRM does not affect the right of an affected person to submit their complaints to any agency they wish to, for example the local village committee, community leaders, courts, PMO, PIU, governments of Lankao County, and/or ADB.

164. The PMO and PIU shall bear any and all costs of implementing the GRM, including meeting, travel, and/or accommodation costs of the project staff or affected person. The GRM will be implemented throughout project construction and at least the first year of operation for each project facility.

Affected Person(s) Stage 1 Solution Complaint Complaint 5 days Implemented

Contractor, CSC IA, local EEB, Village committee Reporting

Unresolved Complaint Forwarded Stage 2 PMO and/or PIU Environment

5 days and/or Social Officers (recording and coordination)

Unresolved Complaint Forwarded PMO Stakeholder Meeting

Action Plan Reporting by PMO to ADB Stage 3

10 days Solution Implemented ADB

Figure VIII-1:Operation Chart of the Grievance Redress Mechanism ADB = Asian Development Bank, CSC = construction supervision company, EEB = ecology and environmental bureau, GRM = grievance redress mechanism, IA = implementing agency, PMO = project management office.

IX. PROJECT ASSURANCES 165. All ADB-funded projects are required to comply with a standard set of loan assurances for environmental safeguards, which focus on compliance with national laws and the project EMP.

(i) Institutional arrangements for implementation of the project EMP. EA will ensure that the IA and PIU establish the following positions that will be responsible for EMP coordination and delivery, and that these measures will be in place prior to the provision of ADB loan funds to the PMO and/or PIU: (i) one full-time PMO environment officer, to lead overall coordination and implementation of the EMP, (ii) one local PIU environment officer to coordinate EMP implementation. All officers assigned to these roles will be qualified environmental staff. All positions will be established within at least two months of loan effectiveness and prior to the start of any civil works.

(ii) Loan consulting services to support EMP implementation. The PMO will engage at least two qualified national environmental consultants to assist the IA and PIU with EMP implementation: (i) a short-term start-up consultant, who will support the PMO to establish the EMP, in the period between loan effectiveness and recruitment of loan implementation consultants, and (ii) a loan implementation environment consultant, who will provide intermittent support throughout the project duration.

(iii) External environmental monitoring. The PMO will engage a qualified environmental monitoring agency with appropriate national certification, to conduct the external environment monitoring specified in the EMP.

(iv) Before and during the implementation of works, EA shall cause the PMO and PIU to organize and conduct training on implementation and supervision of the EMP for the PMO, implementing agencies and their PIU, construction supervision companies, and contractors, and shall ensure that the appropriate staff and officers receive such training.

X. CONCLUSION

166. The Project will improve air quality in Lankao County, Henan Province. This is consistent with (i) the PRC’s Thirteenth Five-Year Plan, 2016–2020, which aims to eradicate extreme poverty and balance the development of rural and urban areas to improve agricultural productivity and rural incomes; (ii) Henan provincial government issued the medium- and long-term energy development plan (2012–2030), which promote the utilization of natural gas; (iii) ADB’s Strategy 2030, which (a) emphasizes the importance of addressing remaining poverty, reducing inequalities, and promoting rural development, and (b) requires upper middle-income countries to strengthen institutions and share knowledge; and (iv) ADB’s country partnership strategy for the PRC, 2016–2020, which aims to support inclusive economic growth by reducing poverty and inequality.

167. The project will have significant and long-term environmental benefits: (i) improved ambient air quality; (ii) improve the air quality in the household; and (ii) social benefits. 68,460 HHs. When compared to the equivalent traditional fuel consumption (coal and liquefied natural gas (LNG), once operational the subproject will: (i) result in annual energy savings equivalent to 14,309.0 tce, thereby providing a global public good by avoiding the annual emission of 32,685.47 tons of CO2; (ii) improve local air quality through the estimated annual reduction of emissions of SO2 by 458.5 tons, NOx by 94.4 tons, and PM by 272.5 tons; and (iii) eliminate the negative impacts of coal transportation by truck or train.

168. Key environmental risks anticipated due to construction include: (i) soil erosion; (ii) temporary noise and traffic disturbance to nearby villages and communities; (iii) air pollution (mainly fugitive dust); (iv) inappropriate or uncontrolled solid waste disposal, both construction waste and domestic waste from workers; and (v) occupational and community health and safety.

169. Key operational risks assessed were: (i) domestic wastewater and waste from operation staff; (ii) occupational and community health and safety. Other operational risk are gas leakage. The PIU will develop operation and maintenance (O&M) procedures for each subcomponent and will receive training in environment-friendly O&M from the construction companies. Measures to avoid, minimize, and mitigate potential project impacts have been developed within the EMP (Appendix 1), which is the key document to manage, monitor and report on environmental impacts of the project.

170. A project-specific GRM has been developed, and will be implemented at the city, district/county, and site levels. Information disclosure and public consultation have been conducted with communities, villagers, towns near the project site. Feedback from the consulted residents and villagers included both support for the project for improvement of rural waste and sanitation management facilities and services, development of local featured agricultural and forestry products developed and values added to agricultural and forestry products, and concern over potential construction noise, soil erosion, dust, and odor, wastewater and waste from operation. Measures to address these concerns are incorporated in the EMP (Appendix 1).

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

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

APPENDIX 1. ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

1. This environment management plan (EMP) is for the Lankao County Cleaner Fuel Switch Subproject of the Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program (the Program) in Henan Province of the People’s Republic of China (PRC). The EMP is developed based on the initial environmental examination (IEE) of the project and in compliance with the requirements of PRC environmental laws and ADB’s Safeguard Policy Statement (SPS 2009).

2. The EMP defines appropriate mitigation measures for the anticipated environmental impacts and defines the institutional responsibilities and mechanisms to monitor and ensure compliance with PRC’s environmental laws, standards and regulations, and ADB’s SPS. The EMP specifies (i) objectives; (ii) mitigation measures; (iii) implementing organization and responsibilities; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (v) a feedback and adjustment mechanism; and (vi) the grievance redress mechanism (GRM).

3. The EMP will be reviewed and updated at the end of the detailed designs, as needed, in order to be consistent with the final design. The EMP (or its updated version) will be included as a separate annex in all bidding and contract documents. The contractors will be made aware of their obligations to implement the EMP and to budget the EMP implementation costs in their proposals. The EMP supervision and monitoring results will be used to evaluate (i) the extent and severity of actual environmental impacts against the predicted impacts, (ii) the performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts; and (iv) overall effectiveness of the mitigation measures.

B. Organizations and Their Responsibilities for EMP Implementation

4. The Henan Provincial Government will be the executing agency (EA) and will have overall responsibility for the program. The IA will be the Zhongyuan Yuzi Investment Holding Group (ZYIHG), a state owned enterprise (SOE) under the Henan Provincial finance bureau, who will be responsible for implementing and monitoring the activities in the program through the Yu-Tian New Energy Company (YTNE), a joint venture between ZYIHG and the private China Tian Lun Gas Holding Limited (CTLG). A program coordination committee comprised of ZYIHG, YTNE, Provincial Development and Reform Commission, Provincial Finance Bureau, and other relevant provincial government agencies, will be established to provide oversight and strategic guidance in implementing the program. Lankao Subcomany of YTNEC will be the project implementing unit (PIU) of the subproject. A PMO will be established at YTNE. The EMP implementation arrangements and responsibilities of governmental organisations are summarized in Table EMP-1

5. Environmental staff within PMO and PIU. The PMO has designated a qualified environment officer, who will take overall responsibility for supervising the implementation of the EMP, and update of the IEE and EMP if required after the detailed design. The officer will work full-time for the project and will take charge of: (i) supervising the implementation of mitigation measures during project design, construction and operation; (ii) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management manuals; (iii) submitting semi-annual EMP monitoring and progress reports to ADB; (iv) coordinating the GRM; and (v) responding to any unforeseen adverse impacts. The PMO Environment Officer will be technically supported by the loan implementation environment consultant. The PIU will nominate one qualified environment and social focal staff to check the overall

77 implementation of environmental management provisions of the EMP and to work in close coordination with the PMO Environment Officer.

6. Loan implementation consultants. PMO will engage (i) loan implementation start-up consultant (environment) on a short-term basis, to assist the PMO with early establishment of the EMP immediately after project effectiveness, and (ii) a loan implementation environmental consultant (LIEC) and loan implementation social consultant (LISC), as part of the loan consultancy implementation services for the whole duration of the project. These consultants will be recruited for intermittent (part-time) support. They will support the PMO for capacity building for, and coordination of, the EMP implementation. The LIEC will also support contractors in developing construction site- specific environmental management plans (CEMPs) prior to construction and operation.

Table EMP-1: Summary of Institutional Responsibilities for EMP Implementation

Organization Role and Responsibility IA - -Coordinating and overseeing project preparation and implementation. - -Coordination of strategic issues at regional or national level. - -Providing policy guidance and facilitation during implementation. - -Facilitating interagency coordination with other involved parties at the regional level (and facilitate issues and decision making at the national level, if required). PMO - On behalf of IA, the main responsibilities of PMO include: - Contracting and administering contractors and suppliers. - Supervising construction and monitoring quality control. - Engaging a local EMA for environmental monitoring. - Engaging a LIC including a LIEC. - Ensuring compliance with EMP and RP. - Responding to any adverse impact beyond those foreseen in the EIA and ensuring that if there are any changes in scope, the EIA/EMP will be updated as needed. - Responding to requests from relevant agencies and ADB regarding the mitigation measures and environmental monitoring program. - Identifying and implementing O&M arrangements. - Take corrective actions if needed. - Prepare environmental monitoring reports semi-annually during construction and annually during operation. PIU - The PIU will be responsible for all project organization and implementation activities, including the following: - Updating EIA/EMP if needed, including EMoP. - -Ensuring that mitigation measures are included in engineering detailed design. - -Ensuring project’s compliance with loan and project agreements and safeguards requirements. - Managing the activities of the design institutes, procurement agents, and consultants in accordance with government and ADB regulations. - Coordination with concerned offices, including SPG, and with external contacts. - Taking part in capacity development and training. - Establishing and operating the project complaint center with hotline. - Overseeing the project program and activities of the IA in the implementation of the project outputs. - Monitoring the project’s physical and financial progress and compliance with project’s reporting requirements, ensuring project progress reports are prepared and submitted to ADB on time. - Preparing progress reports for submission to the IA and/or PMO. - Coordinating the activities of and meeting the requirements of ADB’s review missions. Loan The LIEC will: Implementation - Review the updated EIA and EMP. Environmental - Confirm that mitigation measures have been included in detailed engineering design. Consultant - Review bidding documents to ensure that the EMP clauses are incorporated. (LIEC) - Review CEMPs to ensure compliance with the EMP. - Provide technical assistance and support to the PMO and contractors on mitigation measures and EMP implementation.

- Deliver the construction and operation phase capacity building programs to the staff of the IA, PMO, and contractors. - Conduct site inspections in compliance with the environmental monitoring plan. - Review reports prepared by contractors and assist the PMO in preparing semiannual environmental monitoring reports. EMA - A qualified independent environmental monitoring station will be recruited to implement the ambient monitoring portion of the EMoP. Contractors - Ensure sufficient funding and human resources for proper and timely implementation of required mitigation and monitoring measures in the EMP and CEMPs throughout the construction phase. - Responsible for GRM operation during construction phase. Construction - Ensure sufficient funding and human resources for supervising and instructing contractors supervision for proper and timely implementation of required mitigation and monitoring measures in company(ies) the EMP and CEMPs throughout the construction phase. (CSCs) - Appoint an EHS officer to supervise and instruct contractors and their EHS officers for EMP and CEMPs implementation related to environment, occupational health and safety on construction site. - Prepare and submit quarterly EMP and CEMP monitoring reports to the PMO. ADB - Responsible for the following: - Review and clear the EIA and EMP and disclose on ADB website. - Approve updated EIA/EMP if appropriate and disclose on ADB website - Provide guidance to the executing and implementing agencies. - Conducting review missions. - Monitoring status of compliance with loan and project covenants, including safeguards. - Regularly updating the project information documents for public disclosure at ADB website, including the safeguards documents.

CSC = construction supervision company, EHS = environment, health and safety, EMA = environment monitoring agency, EMP = environment management plan, GRM = grievance redress mechanism, LIEC = loan implementation environment consultant, PIU = project implementation unit, PMO =Project management office.

C. Potential Impacts and Mitigation Measures

7. Tables EMP-2 list the potential impacts of the project components in the project areas during project preparation, design, construction and operation, and proposed mitigation measures. The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, by the design institutes (during detailed design) and contractors (during construction), under the supervision of the PMO and PIU Environment Officers and CSCs, with technical support from the LIECs. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved, or adjusted.

Table EMP-2: Potential Impacts and Mitigation Measures during Pre-construction, Construction and Operation Phases Item Potential impacts / Mitigation measures Who Who issues implements supervises A. DESIGN AND PRE-CONSTRUCTION PHASES Detailed Institutional • At least 1 month before construction: (i) reconfirm the full-time status of the PMO PMO, PIU IA design stage strengthening for EMP Environmental Officer; (ii) appoint at least one Environment Focal Staff in each PIU. Implementation and • At least 2 months before any construction, PMO engages LIEC. supervision • At least 2 months before any construction, provide training to all environmental staff for EMP implementation and supervision. • Confirm that at least one certified EMA has been recruited for the project at least 2 months before any construction. • Coronavirus (COVID-19) safety management – prescreening ahead of works. Establish early screening measures and procedures to ensure that all new project personnel are tested negative before commencing on-site work. See also requirements under occupational health and safety (Construction Phase, and Appendix 2) for preparation of a COVID-19 health and safety plan. • Organize and conduct training on the project EMP for appropriate staffs of the PMO, IAs, PIU, contractors, and CSCs. Updating EMP • PMO and PIU shall include this specific requirement in all relevant tenders for PMO, LIEC EEBs, ADB construction, and O&M, of the cooling facilities tenders • PMO and PIU shall explicitly assess that this requirement has been complied with in the bids received. • PIU shall assess whether their existing (non ADB-funded) operations use R134a, and if so, assess the feasibility (including cost) of converting to coolants with lower climate impact such as R32 or R290. Update the mitigation measures defined in this EMP • Update the EMP as needed, based on the final detailed designs. • Submit the updated EMP to ADB for review. Changes in project locations or scope • In case of major changes of project location and/or additional physical components, form a DEIA team to conduct additional DEIA and public consultation. The revised DEIA will be submitted to local EEBs and ADB for approval and disclosure. ADB will determine if the change is minor or major. Environmental • Prior to construction, the PMO or PIU will hire an EMA for environmental monitoring. PMO, PIU, PMO, PIU monitoring plan • Prepare detailed monitoring plan in accordance with the monitoring plan in this EMP. EMA Bidding and contract • Mitigation measures in the EMP are incorporated in all bidding documents. DIs, PMO, LIEC, EPD, Construction documents • Bidding documents are sent to ADB for review. PMOs EEBs, ADB Preparation • Prepare environmental contract clauses for contractors. EMP training • LIEC, or invited environment specialists and/or officials from EEBs provide training on LIEC PMO, EEB construction environmental management, implementation, supervision, to contractors and

Item Potential impacts / Mitigation measures Who Who issues implements supervises CSCs, in accordance with the training plan in this EMP. Establish GRM • Responsibility for GRM implementation is assigned to the PMO and PIU Environmental PMO, PIU LIEC Officers and Social Officers and is included in their terms of reference. • PMO and PIU personnel will be aware of, and trained in, the GRM, and will help support the environmental and social officers when necessary. • Key contact details for the GRM (phone number, WeChat, address, email) will be provided on the PMO, IA and/or EEB public websites and information boards at construction sites. Site EMPs • Prior to any works, prepare site-specific EMP for individual construction sites Contractor CSC • Review and ensure site EMP complies with the measures in this EMP PMO, PIU LIEC B. CONSTRUCTION PHASE Topography Earthwork, soil erosion, • During earthworks, the area of soil exposed to potential erosion at any time will be Contractor CSC, PIU, and Soils soil contamination minimized through good project and construction management practices. PMO, EEB, • Spoil will be covered with landscape material and/or regularly watered. WRB, • Construction activities will be limited or halted during periods of rains and high winds. LIEC • Pipe jacking technology will be adopted to minize the excavation activities. • Pipelines will be installed and backfilled in a sequenced section-by-section approach. Open excavation areas during trenching activities will be minimized, and appropriate construction compaction techniques utilized. Spoil will be 100% backfilled as soon as possible. • Once construction is complete disturbed surfaces will be properly restored. Ambient Air Dust generated by • Spraying of water daily on construction sites where fugitive dust is being generated. Contractor CSC, PIU, construction activities, • Transport vehicles will be limited to low speeds in construction sites. PMO, LIEC gaseous air pollution • Loads will be covered during truck transportation to avoid spillage or fugitive dust (SO2, CO, NOx) from generation. Fine materials will be transported in fully contained trucks. construction machinery • Transport routes and delivery schedules will be planned to avoid densely populated and and pipeline laying sensitive areas, and high traffic times • Store petroleum or other harmful materials in appropriate places and cover to minimize fugitive dust and emission • Provide regular maintenance to vehicles in order to limit gaseous emissions (to be done off-site) • Ensure vehicle and machinery emissions comply with PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, and GB18285-2005. • Disturbed site will be revegetated as soon as possible after the completion of works. • Provide appropriate personal protective equipment (PPE) to workers to minimize risks, including ear protection for high-noise environment and masks for welding • Timely monitoring of air quality and inspections during construction, as defined in the project EMP (EMP). Noise Noise generated from • Construction activities will be planned in consultation with local authorities and Contractor CSC, PIU,

Item Potential impacts / Mitigation measures Who Who issues implements supervises construction activities communities so that activities with the greatest potential to generate noise and vibration PMO, LIEC are planned during periods of the day that will result in the least disturbance. • Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of such night time activities well in advance. • Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise. • Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines. • Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. • Vehicles transporting construction materials or waste will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. • Special attention will be paid to protect sensitive sites near the component site: High noise construction activities will be positioned as far away from sensitive sites as possible. • Noise from cleaning of pipelines will be minimized by utilization of low noise valves, mufflers after the valves and sound insulation. Soil and water Impact from • Contractors will develop relevant measures on controlling the oil and other chemicals as Contractor CSC, PIU, pollution wastewater pollution part of their site EMPs. PMO, LIEC • Wastewater from construction activities will be collected in sedimentation tanks, then recycled to spay the nearby areas for dust control or water the plants. • Domestic waste will be discharged to municipal sewer system for treatment. • All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. • Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. All construction machinery will be repaired and washed at special repairing shops. • Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces and provided with sorbent mats and cleanup installations. • Contractors’ fuel suppliers must be properly licensed, who shall follow proper protocol for transferring fuel and the PRC standard of JT618-2004 (Transportation, Loading and Unloading of Dangerous or Harmful Goods. revised). Solid Waste Solid waste generated • Littering by workers will be prohibited. Contractor CSC, PIU,

Item Potential impacts / Mitigation measures Who Who issues implements supervises by construction • Domestic waste containers will be used for domestic waste collection at construction sites. PMO, LIEC activities Domestic waste will be collected on a regular basis by the local sanitation departments and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. • Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements. • There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. • Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil that remain on the site after construction. • CONTRACTOR PERFORMANCE TARGET: No uncollected waste at close of construction activities each day Ecology Impacts on fauna and • Clearance of vegetation will be restricted to specific construction sites. Contractor CSC, PIU, flora • Prior to construction, vegetation and habitats will be clearly demarcated as no-go zones PMO, LIEC for workers and machinery. • Cleared sites will be immediately re-vegetated afterward. • All plantation activities under the landscaping activities will only use native plant species. In the event that non-native seedlings are required for rapid stabilization of exposed soils and sites, only sterile seedlings (i.e., which cannot propagate) will be used, to prevent the spread of weeds. • To reduce the risk of spreading weeds, pest animals, and/or soil-based organisms, the project will: (a) prohibit the use of any plant species classified in the PRC as weeds – including native species – as defined by the Research Center for Biological Prevention and Control of Alien Invasion (Ministry of Agriculture and Rural Affairs) and Institute of Plant Protection (Chinese Academy of Agricultural Sciences), available at http://www.chinaias.cn/wjPart/index.aspx Physical Damage to known or Implement the following chance-find procedure at all sites: Contractor PIU, LIEC, cultural unknown above or • Prior to works, conduct a cursory check of the site and ground cover to assess what cultural relic resources below-ground cultural physical human objects – if any – are present e.g., graves, artifacts, temples, etc. bureau relics • Contractor is to immediately report these to the CSC and PIU. • If an artefact is found, stop works immediately. Notify the CSC and PIU. • The PIU notify the PMO and Cultural Relics Bureau. • No further work at the site will be conducted under the Cultural Relics Bureau provides specific guidance on how to proceed with next steps. Community Community • Traffic management. A traffic management plan will be prepared by the contractor. The Contractor, CSC, PIU, and consultation, health, plan will include provisions for diverting or scheduling construction traffic, regulating traffic CSC PMO, LIEC

Item Potential impacts / Mitigation measures Who Who issues implements supervises occupational and safety at road crossings, selecting transport routes to reduce disturbance to regular traffic, health and reinstating roads, and opening them to traffic as soon as the construction is completed. safety • Underground facilities survey and protection. Pipeline construction activities will be planned so as to minimize disturbances to utility services. If any utilities are disturbed by the construction activities, they will be rectified immediately by the contractor in coordination with the utility provider. During this rectification period, the users will be provided with alternatives such as the provision of water supply through tankers if the water supply pipes are broken. • Information disclosure and public consultation. Villagers, residents, and businesses will be informed in advance through media, information boards, and public consultations (Section VII), including the dates, duration, and scope of planned works. • Construction site protection. Clear signs will be placed at construction sites in view of the public, informing people about the project GRM, and warning people against potential dangers such as moving vehicles, hazardous materials, and excavations, and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate. • Excavated sites and protection. Pipeline construction activities will be planned so as to minimize disturbances to utility services. Open trenches will be fenced and cordoned off to prevent access by the general public and reduce the risk of persons accidentally falling in. Occupational health • Prepare environmental, health and safety plan, to include: (i) clean and sufficient supply Contractor CSC, PIU, and safety of fresh water for construction sites, offices; (ii) sufficient latrines and other sanitary PMO, LIEC arrangements at construction sites and work camps; (iii) garbage receptacles and regular emptying; and (iv) provision of safety clothing and equipment as needed, in accordance with health and safety regulations. • Prepare emergency response plan and submit to PMO and EEB for approval. Establish emergency phone links with township hospitals. Maintain a first-aid base in each construction camp. • Establish a records management system for occupational accidents, diseases, incidents that: (a) includes a tracking system to ensure that incidents are followed-up; (b) can easily retrieve records; and (c) can be used during compliance monitoring and audits. The system will be backed up on at least one external hard drive to protect records against loss or damage. The records will be reviewed during compliance monitoring and audits. • Safety communication. Publicize occupational health and safety matters to all project personnel. Install on-site signs and give regular training. • Train all workers in basic sanitation, health and safety matters, and work hazards. Implement awareness and prevention program for HIV/AIDS and other diseases – target the local community and construction workers.

Item Potential impacts / Mitigation measures Who Who issues implements supervises • Provide personal protection equipment to workers as needed, e.g. safety boots, helmets, gloves, protective clothing, goggles, ear protection. • Asbestos. In the event that materials containing asbestos are suspected: (i) the contractor will immediately inform the PIU, who will inform the PMO; (ii) the contractor will subcontract the municipal center for hazardous waste, who will be responsible for the safe handling, transport, and disposal of the materials; (iii) such materials will only be disposed in a landfill site certified and designed to receive hazardous materials. • COVID-19. Prepare and implement a coronavirus (COVID-19) health and safety plan to address COVID-19 health risks. The plan will be prepared in line with government regulations and guidelines on COVID-19 prevention and control, and in consultation with public health agencies in the area. The plan will include (i) measures to record the locations that workers have visited/lived immediately before and during project work; (ii) schedules for disinfecting/cleaning offices, and rented labor houses; (iii) measures to implement temperature checks and other health checks on-site; (iii) physical distancing measures, particularly in rented houses camps; (iv) requirements for mandatory use of personal protective equipment such as facemasks, and provision of handwashing stations, hand sanitizers, and other appropriate protective measures; (v) how workers and residents living near project sites will be provided with information to protect themselves from COVID-19; (vi) procedures to be adopted in the event a worker is suspected of having contracted COVID-19; and (vii) other COVID-19 prevention and control measures appropriate for the local context. CONTRACTOR PERFORMANCE TARGET: Emergency response plans in place, and 100% of workers aware of emergency response procedures. C. OPERATION PHASE Wastewater Discharge of Domestic • Domestic waste water will be discharged to existing municipal sewage system for PIU PMO, LIEC, Wastewater treatment EEB Waste Collection and • Domestic waste bins will be provided and domestic waste will be routinely collected by the PIU PMO, LIEC, Disposal local sanitation department for recycling, if possible, or final disposal at an approved waste EEB disposal site; • Solid waste generated during operation especially maintenance will be recycled as much as possible; • Hazardous waste generated during maintenance will be collected, transported and treated by a certified 3rd party hazardous waste treatment company. Occupational Occupational health • Operation phase EHS plan will be developed and implemented and workers will be trained PIU PMO, LIEC, Health and and safety regularly on their implementation; EEB Safety • PPE including goggles, gloves, and safety shoes will be provided to workers; • Training will be provided to workers on occupational health and safety, and emergency response and regularly drilled;

Item Potential impacts / Mitigation measures Who Who issues implements supervises • During operation, the transferred gas will be filled with additives (tetrahydrothiophene) to warn the nearby persons of the leakage; and • During operation, routine inspection will be implemented by the staff with leakage detection equipment. If gas leakage is found by the staff, the leakage information will be reported to the PIU including the gas leakage location and the PIU will determine the leakage and implement the measures in the emergency response plan such as valves shut down, security of the leakage site, maintenance of pipelines and timely inform of nearby communities and villages. • COVID-19 prevention and control measures will be strictly implemented following the PRC and Henan Province requirements. Community Community Health and • The subproject will prepare emergency response plan based on relevant PRC laws and PIU PMO, LIEC, Health and Safety regulation; EEB Safety • The nearby communities and villages will be informed of the potential risks and the emergency response plan. Emergency Emergency Response A draft emergency risk and response has been established in accordance with the “National PIU PMO, LIEC, Response Environmental Emergency Plan” (24 January 2006), other relevant PRC laws, regulations EEB and standards, as well as World Bank EHS Guidelines and ADB’s SPS 2009 and will include measures in the World Bank EHS guidelines with respect to occupational and community health and safety. The plan must be established and in place before the plant is operational. Indicative plan requirements are as follows: − Procedures for responding to different types of emergency situations will be identified in the response plan. − Emergency exercises will be conducted and they should include different emergency scenarios.

Training Requirements − Appropriate operating and maintenance employees will be trained to ensure that they are knowledgeable of the requirements of emergency response plan. Training will be provided as follows: − Initial training to all employees before the pipelines are put in operation. − When emergency response procedures have been updated or revised.

Annual Emergency Simulation − Simulated emergency exercises will be conducted at least annually.

Communication with Public Officials • When an emergency resulting in a hazard to the public safety occurs, the local fire

Item Potential impacts / Mitigation measures Who Who issues implements supervises department, police, the city medical emergency center and other relevant public officials should be notified. An emergency call list will be prepared and make it available at the plant control room. COVID-19 = coronavirus disease, CSC = construction supervision company, EEB = ecology and environment bureau, EMA = environmental monitoring agency; LIEC = loan implementation environment consultant, PIU = project implementation unit, PMO = Project management office.

D. Environmental Monitoring, Inspection and Reporting 8. Three types of project monitoring will be conducted under the EMP: (i) internal monitoring – to be conducted by the PIU and the CSCs; (ii) external monitoring – of air, and noise standards – to be conducted by the EMA; and (iii) compliance monitoring – to be conducted by the LIEC, to ensure the EMP is being implemented.

9. The monitoring program (Table EMP-3) describes the scope of monitoring, parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the standards mentioned in Chapter II. The applicable standards to be followed on ambient air, surface water, noise, and the pollutant discharges are given in Table EMP-4.

10. Internal monitoring. During the construction phase, the CSCs and the PIU will be responsible for conducting the internal environmental monitoring in accordance with the monitoring plan. Results will be reported through the CSC monthly reports to the PIU and PMO.

11. External monitoring. The PMO or PIU will contract and fund at least one EMA to conduct the external environmental monitoring described in Table EMP-5. A detailed cost breakdown will be provided by EMAs tendering for this work. The external monitoring will be conducted during the entire construction phase and first full year of operation of the relevant facility. The EMA will prepare semi-annual monitoring reports of the methods and results. The EMA will submit these to the PMO, PIU, and ADB at the same time, to ensure independence.

12. Compliance monitoring for EMP. The LIEC will review project progress and compliance with the EMP based on field visits, consultations with the PMO and PIU environment officers, contractors, and CSCs, and review of the monitoring reports by the CSCs and EMA(s). The site visits will include comparison of the works and conditions observed with the EMP mitigation and monitoring measures in Tables EMP-2 and EMP-4. The site visits will include, but not be limited to: visual inspection of worker and construction solid waste at work sites; evidence of soil erosion, water pollution, and sewage; community and occupational health and safety (camp hygiene, availability of clean water); and, evidence that emergency response plans are in place and that workers are familiar with them. There is no set frequency for these inspections: the LIEC will make site visits as often as possible within the available budget, focused especially on periods of peak construction. The findings of the LIEC will be reported to ADB through the semi- annual environment monitoring reports.

13. Semi-annual environment monitoring reports. The PMO will submit these reports to IA. They will include: (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The LIECs will help the PMO prepare the reports and submit the English report to ADB for disclosure.

14. Project completion environmental audits. Within three months after each subproject completion, or no later than a half year with permission of the local EEBs, environmental acceptance monitoring and audit reports of each subproject completion shall be: (i) prepared by a licensed environmental monitoring institute (usually, the institute

is the municipal, district, or county environmental monitoring station under the municipal, district, or county EEB) in accordance with the PRC Guideline on Project Completion Environmental Audit (2001); (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities; and (iii) reported to ADB through the semi-annual environment monitoring reports.

15. Quality assurance (QA) /quality control (QC) for compliance monitoring. To ensure accuracy of the monitoring, QA/QC procedures will be conducted in accordance with the following regulations: i) Regulations of QA/AC Management for Environmental Monitoring issued by the State Environmental Protection Administration in July 2006; ii) QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre in 2001; and iii) QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre in 2001.

Table EMP-3: Environmental Reporting Plan Report From To Frequency of Reporting A. Construction Phase Internal progress reports CSC PIU Monthly External environment monitoring EMA PMO, PIU Semi-annual reports Environmental acceptance Licensed EEB, PMO, Within three months after monitoring and audit reports institute PIU component completion Environmental monitoring report. To include the external PMO ADB Semi-annual environment monitoring reports B. Operation Phase EMP progress reports PMO IA Semi-annual

Table EMP-4: Environmental Monitoring Program for “Internal” and “External” Monitoring. See text for description of “compliance monitoring”. Compliance Subject Parameter* Location Frequency Implement Supervise Standard CONSTRUCTION STAGE 1. Internal monitoring – by the contractors, CSCs, and PMO and PIU Environment Officers Ambient air Compliance with dust Visual inspection 1 time / PRC GB 3095- Contractor, PMO, LIEC quality mitigation measures at all construction month 2012 and EHS CSC, PIU (Table EMP-2) sites guidelines. See IEE tables II-7. Noise LAeq: measured with Construction site 1 time / PRC GB12523- CSC, PIU, hand-held meter boundary month 2011; GB12348- LIEC Contractor performance 2008. See IEE targets: (i) noise level Tables II-15 and meets standard at site II-16. boundary; (ii) for 425 PMO, LIEC households most at risk from the construction noise, the installed noise barriers reduce noise levels by at least 80%1 Solid waste Garbage and construction Visual inspection 1 time / NA Contractor, PMO, EEB, wastes at all construction month CSC, PIU Sanitation Contractor performance sites bureau

Compliance Subject Parameter* Location Frequency Implement Supervise Standard target: no uncollected waste at end works each day Soil erosion Soil erosion intensity and Visual inspection 1 time / NA Contractor, PMO, LIEC survival rate of re- at all construction month; and CSC, PIU vegetation sites immediately after heavy rainfall Occupational Camp hygiene, safety, Visual inspection 1 time / NA Contractor, PMO health and availability of clean water, at all construction month CSC, PIU safety EMRs sites Contractor performance target: camps clean, EMRs in place; 100% of workers aware of EMR procedures 2. External monitoring – by a certified environment monitoring agencies Construction SS, oil, pH At wastewater 4 times/year PRC GB3838- EMA EEB, PMO wastewater discharge points during 2002 and of construction construction GB8978-1996. sites Ambient air TSP Construction sites 4 times / year World Bank EHS EMA EEB, PMO, quality (at least 1 point during standard. LIEC upwind, 1 point construction downwind) Noise LAeq Boundaries of 4 times / year PRC GB12523- EMA EEB, PMO, construction sites (twice a day: 2011 and LIEC once in day GB12348-2008. time and once at night time, for 2 consecutive days) OPERATION PHASE – internal monitoring, by PIU Domestic Compliance inspection to Operation site Semi- NA PIU PMO, EEB waste water of operation phase annually domestic wastewater management measures implementation Domestic Compliance inspection to Operation site Semi- NA PIU PMO, EEB waste of operation phase solid annually waste management measures implementation Health and Compliance inspection of Operation site Semi- NA PIU PMO, EEB operation phase annually Safety and occupational and Emergency community health and safety management Response measures and an Emergency Response Plan implementation BOD5 = 5-day biochemical oxygen demand; CODcr = chemical oxygen demand; CSC = construction supervision company; EMA = environmental monitoring agency; EMR = emergency response plan; EEB = ecology and environment bureau; HCl = hydrochloric

Compliance Subject Parameter* Location Frequency Implement Supervise Standard acid, IA = implementation agency; LAeq = equivalent continuous A-weighted sound pressure level; NA= not applicable; NH3-N = ammonia nitrogen; NOx = nitrogen oxide; OPF = operator of project facility; PM10 = particles measuring <10μm; PIU = project implementation unit; PMO = project management office; SO2 = sulfur dioxide; SS = suspended solids; TSP = total suspended particle, WWTP = wastewater treatment plant. 1 Compared by measuring noise on each side of the noise barrier with a hand-held meter. 2 Parameters selected to measure potential odors and odors (from stockpiled waste). * In the event that monitoring detects that standards are exceeded: (i) this will be immediately reported to the PMO and operator of the project facility; (ii) actions will be taken within one week to address the issue; (iii) compliance with standards will be confirmed by immediate subsequent testing; and (iv) all issues will be included in the environment monitoring reports from the PMO to ADB.

E. Training and Capacity Building

16. The PMO and implementing agencies have no previous experience with ADB- funded projects or safeguard requirements. The experience of individual staff within the city, the district and county EEBs for environmental management varies considerably. Domestic EIAs and project approvals generally include limited mitigation measures, but there is not yet a regulatory requirement in the PRC for EMPs of the scope required by ADB. Implementation of the current EMP represents a significant new task for the local agencies. During the project preparation phase, preliminary training on EMP implementation was provided by the TA Consultant, including roles and responsibilities of contractors and CSCs for EMP implementation, project impacts, and mitigation measures.

17. During implementation, a capacity building program will be implemented for safeguards and technical capacity for the designed components, including: (i) implementation of the EMP, including the mitigation measures, monitoring, and reporting; and (ii) operation and maintenance of the constructed facilities. Training will be provided by the loan implementation consultants and Lankao County EEB, facilitated by the PMO and PIU. Trainees will include the PMO, implementing agencies, PIU, contractors, CSCs, and relevant local bureaus (including water resources, agriculture, forestry).

Table EMP-5: Project Environment Training Program Training Trainers Attendees Contents Times Days # Persons Budget (USD) Topic ADB and PRC laws, regulations and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety laws, policies, standards and regulations − International environmental, health and safety 3 (once prior Training Construction management practice in civil irrigation and drainage to start of Development Phase Contractors, construction construction, Environment, LIEC PMO, and then once 2 30 Fixed costs: Health and GRM IA, EA during second $2000 per Safety − GRM structure, responsibilities, and timeframe and third course delivery Training − Types of grievances and eligibility assessment years) x 3 = $ 6,000 Implementation of Construction Phase EMP − Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions ADB and PRC laws, regulations and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety laws, policies, standards and regulations − International environmental, health and safety Training 3 (once prior Development Operation management practice in civil irrigation and drainage to start of Phase operation operation, and Environment, PMO, IA, LIEC GRM then once 2 30 Fixed costs: Health and EA during second $2000 per Safety Plan − GRM structure, responsibilities, and timeframe and third course delivery Training − Types of grievances and eligibility assessment years) x 3 = $6,000

Implementation of Operation Phase EMP − Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions Total 6 60 $12,000

ADB = Asian Development Bank, EMP = environment management plan, EEB = environment protection bureau, , GHG = greenhouse gas, GRM = grievance redress mechanism, LIC = loan implementation consultant, , PIU = project implementation unit, PMO = project management office.

F. Public Consultation and Awareness Raising

18. Information disclosure and public consultation were conducted during project preparation (IEE Section VII). During construction, the project will continue to seek public consultation and raise awareness of project activities, especially those may impact the public. The public consultation plan is in Table EMP-6 and includes public participation in evaluating environmental benefits and impacts. The PMO Environment Officer and Social Officer will be responsible for public participation during project implementation, supported by the PIU and LIEC.

Table EMP-6: Public Consultation and Participation Plan Organizer Approach Times/Frequency Subjects Participants Construction PMO, PIU, Questionnaire Once a year during Construction impacts; Workers, residents LIEC survey, site visits, peak construction adjusting mitigation in construction informal measures if areas interviews necessary; feedback Site-specific basis At least one month Anticipated risks – before the start of noise, odor, other; construction at any Procedures in the new site event of interruptions to water and wastewater services Public workshops At least once during EMP implementation Residents, and hearing peak construction progress; construction affected persons, period impacts; adjusting social sectors mitigation measures if necessary; feedback Operation PMO, PIU Consultation and At least once in first Effects of mitigation Affected persons site visits year of operation measures, impacts of and/or agencies operation, feedback Public survey At least once after 1 Comments and Project year of operation suggestions beneficiaries EIA = environmental impact assessment, PIU = project implementation unit, PMO = project management office, LIEC = loan implementation environmental consultant.

G. Performance Indicators

19. Performance indicators (Table EMP-7) have been developed to assess the implementation of the EMP. These indicators will be used to evaluate the effectiveness of environmental management during the subproject implementation.

Table EMP-7: Performance Indicators

No. Description Indicators (i) PMO and PIU established with appropriately qualified staff including Environmental Officer. 1 Staffing (ii) Appropriately qualified environmental expert recruited if needed. (iii) 3rd party environmental monitoring entity engaged. (i) Environment mitigation cost during construction and operation is 2 Budgeting sufficiently and timely allocated. (ii) Environment monitoring cost is sufficiently and timely allocated.

No. Description Indicators (iii) Budget for capacity building is sufficiently and timely allocated. (i) Compliance monitoring is conducted by IA as per EMoP. 3 Monitoring (ii) Construction phase and operation phase ambient and effluent monitoring is conducted by EMA. (i) IA to review the implementation of EMP. 4 Supervision (ii) ADB review missions. (i) Semi-annual environmental monitoring reports during construction 5 Reporting phase and annual reports operation phase prepared by the IA are submitted to EA and ADB. Capacity (i) Training on ADB safeguard policy, EMP implementation, and GRM 6 Building is provided during subproject implementation. (i) GRM contact persons are designated at all IA and the PMO, and Grievance GRM contact information disclosed to the public before 7 Redress construction. Mechanism (ii) All complains are recorded and processed within the set time framework in the GRM of this IEE. Compliance (i) Project complies with the PRC’s environmental laws and 8 with PRC regulations and meets all required standards. standards

H. Cost Estimates

20. This section provides an estimate of the cost of EMP implementation. The cost comprises expenses for three categories: the mitigation measures described in Tables EMP-2 and EMP-3; monitoring (Table EMP-5); and training (Table EMP-6). Costs are presented for the construction phase of five years and the first year of operation i.e. a total of six years. The costs do not include: (i) detailed design revisions and adjustments; (ii) internal monitoring and inspection of solid wastes disposal, soil erosion and re-vegetation, occupational health and safety during construction, as this will be included in the design, construction and construction supervision contracts; and (iii) salaries of PMO and PIU staff. Costs for mitigation measures and training are based on estimates in the DEIA and/or the experience of the TA consultants from other similar projects. All costs were discussed with the DEIA Institute, PMO and IAs.

21. The total estimated cost for EMP implementation (Table EMP-8) will be2.58 million CNY. Construction-phase costs will be paid by the contractors (as part of their contracts). Operational-phase costs will be paid by the PIU.

Table EMP-8. Estimated Cost for EMP Implementation for Five Years Construction and First Year Operation (xCNY10,000). No. Cost per Item Unit Unit cost Total cost units year Pre-construction phase (Table EMP-2) – Paid by PMO 1.1 Public consultation Meeting, survey 2.0 1.2 LIEC Consultant PM 18.0 Subtotal 20.0 Construction phase (Table EMP-2) – Paid by Contractors 2.1 Soil erosion and contamination 10 2.2 Dust and air pollution control 20 2.3 Noise 10 2.4 Surface water pollution 10 2.5 Solid waste 20 2.6 Protection of flora and fauna 10 2.7 Community health & safety 20 2.8 Occupational health & safety 20 Subtotal 120 Operational phase (Table EMP-3) 3.1 Operation and maintenance of the subproject CNY/yr 100.0 Subtotal 100.0 4. Monitoring during construction 4.1 Noise 4 times/a 2.5 10 10 4.2 Construction wastewater 4 times/a 0.5 2 2 4.3 Ambient air 4 times/a 1.5 6 6 Subtotal 18 18 5. Monitoring during operation 5.1 Leakage monitoring 100 20 Subtotal 100 20 Subtotal 118 38 Grand total (xCNY10,000) 258

I. Mechanisms for Feedback and Adjustment

22. Based on environmental inspection and monitoring reports, the PMO and PIU shall decide, in consultation with the LIEC, whether (i) further mitigation measures are required as corrective actions, or (ii) some improvements are required for environmental management practices. The effectiveness of mitigation measures and monitoring plans will be evaluated by a feedback reporting system. Adjustment to the EMP will be made, if necessary. The PMO Environmental Officer and the LIEC will play critical roles in the feedback and adjustment mechanism.

23. If during inspection and monitoring, substantial deviation from the EMP is observed or any changes are made to the project that may cause substantial adverse environmental impacts or increase the number of affected people, then the PMO and PIU will immediately consult with ADB and form an environmental assessment team to conduct additional environmental assessment. If necessary, further public consultation will be undertaken. The revised DEIAs and project IEE, including this EMP, will be submitted to the ADB for review, appraisal, and public disclosure. The revised EMP will be passed to the contractors and CSCs for implementation.

APPENDIX 2. COVID 19 – PROJECT HEALTH & SAFETY PLAN (DRAFT GUIDELINES) Item Good Practices Who Who implements supervises Awareness • Preparation of awareness materials on COVID-19 e.g., signs, posters Contractor CSC, PIU materials • Installation of awareness signs at work sites, for visibility to workers and the general public Detection • Control and document the entry/exit to the work site for both workers and other parties. Contractor CSC, PIU Measures • Prevent sick workers from entering the site through checking temperatures of workers and other people entering the site. Require self-reporting prior to entering the site. • All workers will take their body temperature regularly. Physical • Keep a distance of at least 1 meter between workers and minimize physical contact, ensure Contractor CSC, PIU Distancing strict control over external access, and queue management (marking on the floor, barriers). measures • Reduce density of people in the building (no more than 1 person per every 10 square metres), physical spacing at least 1 meter apart for construction sites and operation sites and common spaces, such as entrances/exits, lifts, pantries/canteens, stairs, where congregation or queuing of employees or visitors/clients might occur. • Avoid crowding by staggering working hours to reduce the congregation of employees at common spaces such as entrances or exits. • Implement or enhance shift or split-team arrangements, or teleworking. • Minimize the movement of local workers in and out of the site (e.g., avoid workers returning home to medium and/or high risk areas, or returning to site form medium and/or high risk area areas). • Minimize the workers’ contact with local community. Respiratory • All workers should wear a face mask. Contractor CSC, PIU measures • If a worker is sick, they should not come to work if a member of staff or a worker feels unwell while at work, provide a medical mask so that they may get home safely. • Where masks are used, whether in line with government policy or by personal choice, it is very important to ensure safe and proper use, care and disposal Hand Hygiene • Regular and thorough handwashing with soap and water or hand hygiene with alcohol-based Contractor CSC, PIU measures: hand-rub. • Hand hygiene stations, such as hand washing and hand rub dispensers, should be put in prominent places around the workplace and be made accessible to all staff, contractors, clients or customers, and visitors to promote hand hygiene Cleaning and • Cleaning and Disinfection of all site facilities, including offices, accommodation, canteens and Contractor CSC, PIU Disinfection common spaces: • Cleaning (soap, water, and mechanical action) to remove dirt, debris, and other materials from surfaces. Disinfection of dirty surfaces and objects only after cleaning. • Disinfectant solutions must always be prepared and used according to the manufacturer’s instructions, including instructions to protect the safety and health of disinfection workers, use of personal protective equipment, and avoiding mixing different chemical disinfectants. • Provide appropriate PPEs to the cleaners.

Item Good Practices Who Who implements supervises • Manage the waste as the medical waste, and dispose of it in accordance with local regulations. Response • Workers who are unwell or who develop symptoms consistent with COVID-19 to stay at home, Contractor CSC, PIU measures if self-isolate, and contact a medical professional or the local COVID-19 information line for advice on workers found testing and referral (consider telemedicine and flexible sick leave policy). with COVID-19 • Standard operating procedures to be prepared to manage a person who becomes sick at the symptoms workplace and is suspected of having COVID-19, including isolation, contact tracing and disinfection. • People who were in close contact at the workplace with persons with laboratory-confirmed COVID-19 should be quarantined for 14 days from the last time of the contact in accordance with WHO recommendations. • Set out differentiated procedures for the treatment of sick persons, based on the case severity. Pay workers throughout periods of illness, isolation or quarantine. • Set aside a part of worker accommodation for precautionary self-quarantine. • Establish communications with local medical services and refer sick workers to there. Adjusting Work • Consider changes to work processes and timings to minimize contact between workers (e.g., Contractor CSC, PIU Practices and decreasing the size of work team, changing to a 24-hour work rotation). Manage Work • Cancel or postpone non-essential travel to areas with community transmission of COVID-19. Related Travels • Provide hand sanitizer to workers who must travel, advise workers to comply with instructions from local authorities where they are travelling, as well as information on whom to contact if they feel ill while travelling. • Workers returning from an area where COVID-19 transmission is occurring should monitor themselves for symptoms for 14 days and take their temperature twice a day; if they are feeling unwell, they should stay at home, self-isolate, and contact a medical professional. Communication • Carefully manage the relations with the community with clear and regular communication. Contractor CSC, PIU and Contact with • Made aware of the procedures put in place at the site to address issues related to COVID-19. the Community • Practice social distancing with the local community. Risk • Provide posters, videos, and electronic message boards to increase awareness of COVID-19 Contractor CSC, PIU communication, among workers and promote safe individual practices at the workplace, engage workers in providing training, and feedback on the preventive measures and their effectiveness. education • Provide regular information about the risk of COVID-19 using official sources, such as government agencies and WHO, and emphasize the effectiveness of adopting protective measures and counteracting rumors and misinformation. • Train the workers on procedures in place by the project, and their own responsibilities in implementing them.