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Songhua River Basin Water Pollution Control and Management Project, Private Sector Facility - Phase 1

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Annual Environmental and Social Monitoring Report Project Number: LN2627 January to December 2012 PRC: Songhua River Basin Water Pollution Control and Management Project, Private Sector Facility - Phase 1 Prepared by LJEP Group Co., Ltd. This report has been submitted to ADB by the Borrower and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB. Annual Environmental & Social Performance Report Longjiang Environmental Protection Group Co., Ltd. Harbin·China April 30, 2013 Reporting Period: January 2012 to December 2012 Report Completion Date: April 30, 2013 Prepared by LJEP Group Co., Ltd. Disclaimer The following information is only for reference instead of serving as formal legal documents or any other professional opinions. This report will not guarantee for statements or implications in any form. This report is drafted by Longjiang Environmental Protection Group Co., Ltd. Unless specially noted, discoveries, instructions and conclusions herein only represent opinions from Longjiang Environmental Protection Group instead of ADB board or its working staff. Table of Contents I INTRODUCTION ....................................................................................................................... 2 A Background .......................................................................................................................... 2 B Objective .............................................................................................................................. 3 II ENVIRONMENTAL AND SOCIAL MANAGEMENT ............................................................. 4 A ESPR Prepareration ............................................................................................................. 4 B Environmental and Social Responsibility ............................................................................ 4 C1 Overall Staff and Institutional Arrangement .................................................................... 7 C.2 Environmental and Social work plan ............................................................................. 9 III Environmental and social requirements compliance ......................................................... 14 A National requirements compliance..................................................................................... 14 A.1 Quality and Environmental Management System .......................................... 14 A.2 Compliance with Legislative and Regulatory Requirements ........................ 15 A.3 Regular environment monitor inspection ............................................................... 19 A.4 Emerging Environmental and Social Issues .................................................... 26 B Compliance with ADB Safeguards Requirements ............................................................. 27 IV PROGRESS OF ONGOING SUBPROJECTS/ACTIVITIES............................................. 28 V Summary of safety performance and corrective action ..................................................... 33 VI Sustainable Development Activities and Exchange ........................................................... 35 A Sludge Treatment Plan ....................................................................................................... 35 B Corporation Social Responsibility Report ......................................................................... 37 Annex 1 ............................................................................................................................................. 38 Annex 2 ............................................................................................................................................. 41 Annex 3 ............................................................................................................................................. 43 Annex 4 ............................................................................................................................................. 48 Environmental & Social Performance Report (FY2012) LJEP Group Co. Ltd GLOSSORY OF TERMS & ACRONYMS A2/O Anaerobic-Anoxic-Oxic Biochemical Reactor Process CASS Cyclic Activated Sludge System CSRR Corporation Social Responsibility Report EA Executing Agency EIA Environmental Impact Assessment EMP Environmental Management Plan EPB Environmental Protection Bureau ESMS Environment al and Social Management System ESPR Environmental and Social Performance Report ESA Environmental and Social Affairs ESU Environmental and Social Unit IPP Indigenous People Plan IRP Involuntary Resettlement Plan LJEP Longjiang Environmental Protection Group Co., Ltd. QEMS Quality and Environmental Management System SBR Sequencing Batch Reactor SEPA State Environmental Protection Agency SHMP Safety and Health Management Panel SIA Social Impact Assessment SMI Safety Management Institution SRB Songhua River Basin TTWE Tsinghua Tongfang (Harbin) Water Engineering Co., Ltd. WWTP Wastewater Treatment Plant 1 Environmental & Social Performance Report (FY2012) LJEP Group Co. Ltd ENVIRONMENTAL & SOCIAL PERFORMANCE REPORT ESPR (2012) Reporting Period: January 2012 to December 2012 Report Completion Date: April 30, 2013 I INTRODUCTION A Background 1. Longjiang Environmental Protection Group Co., Ltd. (hereinafter referred to as “Longjiang Environmental Protection”), with its predecessor Qinghua Tongfang (Harbin) Water Affairs Co., Ltd. established in May, 2004 (hereinafter referred to as “Tongfang Water Affairs”), is a shareholding company mainly engaged in water affairs environment protection project investment, construction and operation and owns living sewage level A operation qualification issued by P.R.C Ministry of Environmental Protection. In order to introduce strategic cooperation partner, get listed in the stock market and issue shares to ADB, Qinghua Holding Co., Ltd and other investors, the company adheres to the people-oriented operation ideas to serve the society and actively perform social responsibilities by relying on environment management system. Through close cooperation with Heilongjiang Provincial Committee and government and various regional Committees and governments, the company is committed to resolving long-term water pollution and worsening water quality issues in Heilongjiang, SRB based on public services privatization in multiple forms, e.g. BOT, TOT, cooperation construction and other franchised operation mode. 2. During the 11th five-year plan,, Longjiang Environmental Protection undertook more than 70% water environmental emission reduction assignment in Heilongjiang Province, among which, accumulated sewage disposal within 0.42 billion ton, cut COD 110,000 ton in the capital city Harbin. By the end of 2011 , invested and operated nearly 30 sewage disposal plants, faucet water company, etc, with total disposal capacity 2,600,000 m3/day; the total investment for the last 7 years approached 5 billion Yuan. 3. Based on the water affairs sector and expanding water affairs market, the company is hanging on to the favorable opportunity of environmental protection industry upgrade fully implemented by the national government, accelerating the pace of deeply extending to the environmental protection sector and committed to operating frontline environmental protection project, including low-carbon economy, renewable resources development and recycling advocated by the government. In line with the continued cooperation and development strategy, in order to further enhance operation performance of urban water supply, drainage, sludge disposal facilities, increase the recycling capacity of abandoned appliance, electronic product, dismantled auto parts and improve the urban living environment, in 2010, Longjiang Environmental Protection Group and Heilongjiang Provincial Government signed Investment Strategy Cooperation Agreement on Water Affairs Project and Sewage Disposal Plant in the Key Tourist Towns of Heilongjiang Province; in 2012, the company signed Strategic Cooperation Agreement on Water Affairs and Recycling Project in Heilongjiang Province with Heilongjiang Provincial Environmental 2 Environmental & Social Performance Report (FY2012) LJEP Group Co. Ltd Protection Bureau and Heilongjiang Construction Bureau. 4. In 2012, there were 3,836 urban wastewater treatment facilities in operation in China, with a total designed treatment capacity of 149 million cubic meters/day and average daily treated wastewater amount of 116 million cubic meters. In 2012, there were 65 urban wastewater treatment facilities in operation in Heilongjiang, with a total designed treatment capacity of 3.1052 million cubic meters/day and average daily treated wastewater amount of 1.8175 million cubic meters, of which the total designed treatment capacity of the water factories under Long Jiang Environment Protection Group Share Company was 2.015 million cubic meters/day and average daily treated wastewater amount was 1.0814 million cubic meters. 5. Harbin Taiping Wastewater Treatment Plant is the first wastewater treatment project of Long Jiang Environment Protection Group Share Company and was officially put into operation in December 2005. By the end of 2012, 14 wastewater treatment plants had been obtained, located in Harbin, Mudanjiang, Jamusi, Jixi, Heihe, Zhaodong, Fujin, Anda and Ning’an respectively and three water supply companies had been acquired, i.e. For example, Mudanjiang Longjiang Environment Protection Water
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