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Environmental Assessment SFG3231 REV World Bank Financed Liaoning Safe and Sustainable Water Supply Project Public Disclosure Authorized (No.: P158713) Public Disclosure Authorized ENVIRONMENTAL MANAGEMENT PLAN Public Disclosure Authorized Prepared by Liaoning Urban Construction & Renewal Project Office Shenyang Water Group Co., LTD Anshan Water Supply Company Fushun Water Supply Company Fuxin Water Supply Company Public Disclosure Authorized Gaizhou Water Supply Company May 2017 CURRENCY EQUIVALENTS (Exchange Rate Effective November 30, 2016) Currency Unit = RMB RMB 6.68 = US$1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CLG City Leading Group CPS Country Partnership Strategy EA Environmental Assessment EIRR Economic Internal Rate of Return EMP Environmental Management Plan FSR Feasibility Study Report GDP Gross Domestic Product FIRR Financial Internal Rate of Return FYP Five Year Plan GDP Gross Domestic Product GIS Geographic Information System IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding LDRC Liaoning Provincial Development and Reform Commission LEPB Liaoning Provincial Environmental Protection Bureau LIBOR London inter-bank offered rate LPCD Liaoning Provincial Construction Department LPFB Liaoning Provincial Finance Bureau LPLG Liaoning Provincial Leading Group LUCRPO Liaoning Urban Construction & Renewal Project Office NCB National Competitive Bidding NDRC National Development and Reform Commission NRW Non-Revenue Water PAD Project Appraisal Document PCG Project City Government PDO Project Development Objective PIU Project Implementation Unit PMO Project Management Office PPP Private Public Partnership QBS Quality Based Consultant Selection QCBS Quality and Cost Based Consultant Selection RAP Resettlement Action Plan RFP Resettlement Framework Policy SAR Social Assessment Report SCADA Supervisory Control and Data Acquisition WSP Water Supply Plant Table of Contents I. Introduction ......................................................................................................................................... 5 II. Project Description ............................................................................................................................ 5 II-1 Components of Project ..................................................................................................................... 5 II-2 Subprojects of Each Project City and Current Status of Construction Sites ............................ 6 III. Policy and Administration Framework for Environmental Assessment ................................... 15 III-1 Applicable PRC’s Laws, Regulations and Guidelines ............................................................... 15 III-2 Applicable the World Bank’s Safeguard Policies ........................................................................ 16 III-3 Applicable Environmental Standards ........................................................................................... 17 III-4 Domestic framework for EA approval and environment management .................................... 25 IV. Environmental Baseline of Project Cities ..................................................................................... 26 IV-1 Shenyang ......................................................................................................................................... 26 IV-2 Anshan .............................................................................................................................................. 29 IV-3 Fushun .............................................................................................................................................. 35 IV-4 Fuxin .................................................................................................................................................. 39 IV-5 Gaizhou............................................................................................................................................. 42 IV-6 Environment Protection Objectives within Project Area of Influence in five Project Cities ... 45 V. Due Diligence for Associated Facilities ........................................................................................ 72 V-1 Reservoir Dams ............................................................................................................................... 72 V-2 Associated WSPs of Fuxin ............................................................................................................ 74 V-3 Wastewater Treatment Facilities ................................................................................................... 75 VI. Organizations for Environmental Management .......................................................................... 78 VII. Anticipated Environmental Impacts and Mitigation Measures .................................................. 82 VII-1 Assessment of potential impacts ................................................................................................. 82 VII-2 Project Benefit ................................................................................................................................ 83 VII-3 Specific Impact Analysis and Mitigation Measures ................................................................... 84 VII-4 Anticipated Impacts and Mitigation Measures ........................................................................... 90 A. Estimated Costs for Implementation of Mitigation Measures ................................................... 99 VIII. Environmental Monitoring, Inspection and Reporting .............................................................. 100 IX. GRIEVANCE REDRESS MECHANISM .................................................................................... 106 X. Information Disclosure, Public Consultation and Participation ............................................... 109 XI. Appendix 1 Water Supply Project Environmental Implementation Practices during Construction ........................................................................................................................................... 120 XII. Appendix 2 Emergency Procedures When Cultural Relic Found During Construction ...... 126 I. Introduction 1. This Environment Management Plan (EMP) was prepared for the Liaoning Safe and Sustainable Water Supply Project (the Project) in Liaoning Province, the People’s Republic of China (PRC). The EMP has been prepared in accordance with requirements of the World Bank Safeguard Policy on the basis of (i) the five domestic environmental assessment (EA) reports provided by the local EA Institutes, (ii) the five project Feasibility Study Reports (FSRs), (iii) the social and economic assessments conducted under the Project Preparatory, and (iv) discussions between the World Bank missions, Liaoning Urban Construction & Renewal Project Office (LUCRPO), Liaoning Provincial Development and Reform Commission (LDRC), Liaoning Provincial Finance Department (LFD), as well as the five project cities’ governments and five water supply companies in the cities of Shenyang, Anshan, Fushun, Fuxin and Gaizhou. 2. According to environmental screening and classification requires in World Bank Safeguard Policy Environment Assessment (OP4.01), the proposed project is classified to Class B project based on the type, location, sensitivities, scales, and potential environmental impacts of the project. 3. The proposed Project Development Objectives (PDOs) are to improve access to safe and quality water supply services, and strengthen the operational efficiency of water supply companies in the five project cities in Liaoning Province. This objective will be achieved through investment in the construction, rehabilitation and upgrading of the water supply infrastructure facilities and the improvement of the water supply companies’ operational and management capacity. II. Project Description II-1 Components of Project 4. The project consists of four components: Component 1 - Water Supply Infrastructure Improvement; Component 2 - Water Supply Service Management Improvement; Component 3 - Institutional Strengthening and Capacity Building; and Component 4 - Project Implementation Support. Each component includes subprojects. The contents of components are shown in Table II-1 below. Table II-1 Project Components Component Description Component 1. Water The component will focus on civil works construction that will directly Supply Infrastructure increase the quantity of water supply and improve the distribution network Improvement capacity and performance. Activities to be taken under the component include (i) rehabilitation of the two existing WSPs in the cities of Anshan and Fuxxin, respectively; (ii) upgrade, rehabilitation and replacement of water supply distribution networks, including main trunks (with the length of more than 200 km) and several hundred kilometers of secondary water distribution pipelines; and (iii) upgrade, rehabilitation and replacement of booster pumps, aiming at improving their performance and reducing secondary contamination. Component 2. Water This component will focus on enhancing the water supply service Supply Service management through non-revenue water (NRW) reduction, water quality Management monitoring, energy savings, and effective asset management. Activities to Improvement be taken under this component include (i) mapping and modeling of all water distribution systems in the five cities, using GIS; (ii) development of
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