Initial Environmental Examination PRC: Shaanxi Green Intelligent

Home , Baota District, Fugu County, Wuqi County

Initial Environmental Examination

Project Number: 51401-002 June 2020

PRC: Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project

Yan’an Green Urban District Demonstration Subproject

Prepared by Foreign Capital Utilization Center of Shaanxi Provincial Transport Department and Yan’an New District Municipal Public Utility Co., Ltd. for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 25 May 2020) Currency Unit – yuan (CNY) CNY1.00 = $0.1403 $1.00 = CNY7.1294

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMoP Environmental Monitoring Plan EMP Environmental Management Plan EPB Environmental Protection Bureau FCUC Foreign Capital Utilization Center FSR Feasibility Study Report GDP Gross Domestic Product GRM Grievance Redress Mechanism HSP Heat source plant IA Implementing Agency IEE Initial Environmental Examination MAC Maximum Acceptable Concentration MEE Ministry of Ecology and Environment MEP Ministry of Environmental Protection PAM Project Administration Manual PCR Physical Cultural Resources PPE Personnel Protective Equipment PRC People’s Republic of China SPS Safeguard Policy Statement, ADB TA Technical Assistance WB World Bank WHO World Health Organization WWTP Wastewater treatment plant

WEIGHTS AND MEASURES

BOD5 Biochemical Oxygen Demand, five days 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 cm Centimeter 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 TSP Total Suspended Particulates SO2 Sulfur Dioxide t/h Tons per Hour t/a Tons per Annual

NOTES

(i) In this report, "$" refers to US dollars. (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 I. INTRODUCTION ...... 7 A. The Project ...... 7 B. Introduction of Borrower ...... 8 C. Report Purpose...... 8 D. Approach to Report Preparation ...... 8 E. Report Structure ...... 8 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 10 A. Applicable ADB Policies, Regulations and Requirements ...... 10 B. PRC Environmental Legal Framework ...... 11 C. PRC Environmental Impact Assessment Framework and Procedures ...... 11 D. Domestic EIA ...... 12 E. Relevant International Agreements ...... 13 F. Applicable PRC Environmental Standards ...... 14 III. PROJECT DESCRIPTION ...... 22 A. The Project ...... 22 B. Project Location ...... 22 C. Project Rational ...... 23 D. Project Scope ...... 24 E. Implementation Arrangements ...... 28 F. Energy Consumption and Emission ...... 28 IV. Description of the Environment ...... 29 A. Description of the Region ...... 29 B. Physical Resources...... 32 C. Ambient Environment Baseline ...... 34 D. Ecological Environment and Sensitive Receptors ...... 36 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...... 39 A. Environmental Impact in the Pre-construction Phase ...... 39 B. Anticipated Environmental Impacts and Mitigation Measures during the Construction Phase ...... 40 C. Anticipated Environmental Impacts and Mitigation Measures during Operation Phase.. 51 D. Anticipated Positive Operation Phase Impacts ...... 59 VI. ANALYSIS OF ALTERNATIVES ...... 59 A. Subproject Rational...... 59 B. Site location ...... 60 C. Overall Alternative Analysis ...... 60 VII. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION ...... 60 A. PRC and ADB Requirements for Disclosure and Public Consultation ...... 60 B. Project Information Disclosure ...... 61 C. Project Information Disclosure ...... 62 D. Future Public Participation Activities ...... 68 VIII. GRIEVANCE REDRESS MECHANISM ...... 69 A. Introduction ...... 69 B. ADB’s GRM Requirements ...... 69 C. Current GRM Practices in the PRC ...... 69 D. Project Level GRM ...... 69 IX. CONCLUSIONS ...... 72 Appendix I: Environmental Management Plan ...... 73

EXECUTIVE SUMMARY

A. Introduction

1. This initial environmental examination (IEE) report has been prepared for the proposed Yan’an Green Urban District Demonstration Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project in Shaanxi Province of the People’s Republic of China (PRC). The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

B. Policy, Legal and Administrative Framework for Environmental Impact Assessment

3. The Environmental Impact Assessment (EIA) system has been established in China for more than 40 years. As the domestic EIA is based on environmental laws and regulations, the project is assessed in a comprehensive or focused manner according to relevant regulations and guidelines, and the impact mitigation measures are proposed so as to ensure the project construction complies with national and local laws and regulations and will not cause significant environmental impact.

4. At the same time, relevant environmental protection requirements are proposed in accordance with the Safeguard Policy Statement (SPS) 2009 of Asian Development Bank (ADB) in the preparation of this report. All applicable requirements of the SPS 2009 have been addressed in the IEE.

C. Implementation Arrangements

5. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. The Foreign Capital Utilization Center (FCUC) of SPTD will be the implementing agency (IA). FCUC will establish the project management office (PMO) under the SPTD, responsible for day-to-day management of the subproject. Yan’an New District Municipal Public Utility Co., Ltd will be the project implementation entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers.

D. Project Scope

6. The proposed subproject will build a one logistic park in Yan'an New District, covering three land plots, which are Shuibao Daming Gong Logistics plot, the B-type Bonded Area Logistics plot and the Hetaoshuta Logistics Park plot. Shuibao Daming gong Logistics plot crosses Renmin Road while Dongchen Road in the east, north Changzheng Road in the west, and Dongfanghong

Avenue in the south; Hetaoshuta Logistics Park plot is located in the Hetaoshuta Village of Yan'an New District, while Beichen Road in the west, North Transit Road in the north, and National Highway 210 in the east; the B-type Bonded Area Logistics plot faces Yanzhou Avenue in the east, Dongfanghong Avenue in the north, Jiaxing Street in the south, and Desheng North Road in the west.

E. Construction Schedule

7. The total construction phase of the subproject will be approximately 2 years, from 2020 to 2022.

F. Description of the Environment

Location and Topography

8. Yan'an City is located in the north of Shaanxi Province, , in the middle reaches of the Yellow River, and in the central and southern parts of the Loess Plateau. It borders Yulin of Shaanxi Province in the north, Xianyang, Xi’an, Tongchuan and Weinan of Shaanxi Province in the south, Linfen and Luliang of Shanxi Province in the west, and Qingyang of Gansu Province in the west. The city is located between 35°21′-37°31′ north latitude and 107°41′-110°31′ east longitude, with a total area of 37037km2. Yan'an belongs to the hilly and gully region of the Loess Plateau . The landform of Yan’an is dominated by the Loess Plateau and hills. Elevations generally increase from southeast to northwest, with an average elevation of 1,200m, while its highest point is in the top of the mountain in Wuqi County, with an altitude of 1,809.8m. The lowest point is in the Hou’er River in Jiyi Town, Yichuan County. Main landform of Northern Yan'an City are loess ridge and gully while southern part are loess tableland and gully.

Meteorology and Climate

9. Yan'an has a humid continental climate (Köppen climate classification Dwa) that borders on a steppe climate (Köppen BSk), with cold, dry, and moderately long winters, and hot, somewhat humid summers. Spring and autumn are short transition seasons in between. The annual average temperature is 9.3°C, while 22.9°C in the summer and -6.7°C in the winter. The extreme highest temperature in summer is 39.7°C. The coldest month is January, while the extreme lowest temperature is -25.4°C. The area receives 511 mm of precipitation. With monthly percent possible sunshine ranging from 49% in September to 64% in January, the city receives 2,449 hours of sunshine per year.

Ecological and Sensitive Resources

10. This subproject is located in the New District of Yan'an City, covering three plots. Shuibao Daming Gong Warehouse Logistics plot and B-type Bonded area logistics plot are all planned logistics land, whose surrounding areas are mainly residential area, farmers' markets and construction material markets. Hetaoshuta Logistics Park plot has been leveled and planned as a logistics park land and the surroundings is Hetaoshuta village. Based on the site visit and collected information, there are no known rare or endangered flora or fauna, species with international, national or provincial protection status, areas of natural or critical habitat,1 parks, nature reserves,

1 Natural habitat is land and water areas where the biological communities are formed largely by native plant and animal species, and where human activity has not essentially modified the area’s primary ecological functions. Critical habitat are areas with high biodiversity value, including habitat required for the survival of critically endangered or endangered species; areas having special significance for endemic or restricted-range species; sites that are critical 3 or areas with special national, regional or local ecological significance within or adjacent to any of the component site. There are also no known drinking water sources, scenic sites, or, based on both sites surveys and a review of relevant literature, sites with Physical Cultural Resources (PCRs).

Socioeconomic Conditions

11. In 2019, gross domestic product (GDP) of Yan'an was 166.389 billion yuan, of which the primary sector accounted for 8.97% or CNY 14.933 billion; the secondary sector accounted for 60.1% or CNY 99.985 billion; and the tertiary sector accounted for 30.9% or CNY 51.471 billion. Yuan. The GDP per capita was 35,188 yuan.

Tourism Cultural Resources

12. Yan'an City is a famous historical and cultural city in China with rich cultural resources. In 2018, Yan'an received 63.44 million domestic and foreign tourists with an increase of 25.4%. The revenues from tourism reached 41.07 billion yuan with an increase of 37.5%.

G. Anticipated Environmental Impacts and Mitigation Measures

13. Anticipated positive and negative environmental impacts of the subproject were assessed based on the domestic Feasibility Study Report (FSR), domestic environmental impact assessment (EIA) registration form; public consultations led by PIE and assisted by ADB technical assistance (TA) consultants; and site visits, surveys and consultations undertaken by ADB TA consultants.

14. Pre-construction, construction phase and operation phase of the subproject were assessed respectively. As the assessment results indicate that the environmental impact is very limited in the pre-construction stage and are mostly associated with ensuring appropriate incorporation of mitigation measures into the project design.

15. Potential negative environmental impacts during construction phase are short-term and localized, and are associated with soil erosion, solid waste, wastewater, construction noise, fugitive dust, disruption of traffic and community services, and risks to workers and community health and safety. These can be effectively mitigated through good construction and health and safety practices

16. Potential negative impacts during operation phase are associated with air pollution from vehicles, solid waste, wastewater, noise, and health and safety risks to workers and community. These can be effectively mitigated through good operation of the subproject and health and safety practices

17. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates

for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or that are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic, or cultural importance to local communities (Environment Safeguards: A Good Practice Sourcebook, ADB, 2012).

4 of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

H. Alternative Analysis

18. According to the Medium & Long-term Plan for the Development of Logistics Industry in Shanxi Province (2015-2020), Yan'an City will be positioned as a "second-tier node city"; and according to the National Logistics Hub Layout & Construction Plan, Yan’an City is planned as a "City as Carrier of Landport-type National Logistics Hub".

19. Yan’an has a well-developed railway, highway and aviation transportation network, and has become an important hub. At present, Yan'an has air routes to Xi'an, Beijing, Guangzhou, Chongqing, Shanghai, etc. After the new airport is operated, it will have more domestic and international routes. Now the Inner Mongolia-Central China railway freight transportation channel has been completed and operated, the railway freight transportation between Xi'an and Yan'an is operating now. And the transfer time will be further shortened to around one hour after the Xi'an- Yan'an high-speed railway is operated. The Baotou-Maoming Expressway (G65), Qingdao- Lanzhou Expressway (G22), Qingdao-Yinchuan Expressway (G20) and the G210 national highway pass through Yan’an City and of Yan’an City has a good highway transportation condition.

20. Yan'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region. Meanwhile, warehouse and express delivery transfer sites in Yan'an old urban area featured scarcity, scattered distribution and small size. Most of those sites were located in the outskirts in Yan'an old urban area with an uneven distribution, limited coverage range and long distance away from the urban area, which can’t meet the development needs of Yan'an City. The capacity of the existing logistics center located in the Yan’an old urban area is not sufficient to meet the demand of the Yan’an old urban area.

21. The subproject will build one logistic park in Yan’an New District to provide cargo warehousing and logistics services to the major commercial entities in Yan'an New District and solve the existing storage problems for major commercial entities in Yan'an New District. Based on an overall analysis of alternatives, the subproject has selected the most appropriate site to build the logistic park.

22. Implementation of the subproject will : (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.. It will also provide valuable experience in developing logistic park to meet the increasing logistic demand in Yan’an New District.

I. Information Disclosure and Public Consultation

23. According to the requirements of ADB's SPS 2009, a public consultation of this subproject was held in Yan'an New District on November 7, 2019 and 26 nearby residents were invited to the meeting.

24. During the consultation, the PIE introduced relevant information such as project construction content and construction site, and the EIA institute introduced the potential environmental impacts and mitigation measures during the construction and operation phase. 5

While the participants believed that the subproject will improve their quality of life and provide more job opportunities to nearby residents.

25. During the consultation, a total of 26 questionnaires were distributed and 26 valid questionnaires were received. The questionnaires focused on potential environmental impacts and mitigation measures.

26. The overall support for the subproject is very strong,100%of the respondents support construction of the subproject; 95.0% of the respondents believe that the subproject will promote local economic development; and 95% believe that the subproject will improve the quality of life.

27. 58.0% of the respondents work and 50.0% of the respondents live within 5km of the subproject. 92.0% of the respondents indicated that they have already learned about relevant information of the subproject before the public consultation. 15% of the participants were female. The top three environment issues respondents identified in their neighborhoods to be mainly ambient air (35.0%), noise (46.0%) and solid waste (23.0%). Ambient air (23%), solid waste (12 %) and noise (19.0%) are identified as the top two issues during the construction phase. Air pollution and noise are identified as the top two issues during the operation phase. However, most participants also indicated that the impacts on the environment can be appropriately mitigated and accepted by the environment if relevant measures could be taken during the construction phase and operation phase. 96% of the respondents indicated that they accepted the environmental impacts during construction phase, and 81% of the respondents indicated that they knew the environmental impacts during operation. 92% of the respondents indicated that they accepted the environmental impacts to ambient air during operation, 92% of the respondents accepted the environmental impacts to acoustic environment during operation, 92% of the respondents accepted the solid waste impacts of the subproject during operation and 96% of the respondents accepted the impacts to ecology environment.

28. Meaningful consultation will continue throughout detailed design, construction, and operation phases, including information disclosure by the project proponent and posting of project information on village notice boards.

J. Grievance Redress Mechanism (GRM)

29. During the construction and operation phase of the subproject, the construction unit will establish a Grievance Redressal Mechanism (GRM) to receive and assist in the resolution of complaints. GRM includes procedures for accepting complaints, recording key information, and evaluating and responding to complaints within a reasonable time frame. Any concerns of concern raised through GRM will be dealt with promptly and transparently without retaliation against the complainant.

K. Environmental Management Plan (EMP)

30. A comprehensive EMP has been developed to ensure the implementation of identified mitigation and management measures to avoid, mitigate and compensate for the expected adverse environmental impacts, the monitoring and reporting of monitoring indicators, and compliance with relevant environmental laws, standards and regulations in China, as well as SPS 2009. The EMP includes an environmental monitoring plan (EMoP) to monitor the environmental impacts and assess the effectiveness of mitigation measures, as well as capacity building and training programs focused on health, safety and the environment. EMP is shown in Appendix 1.

L. Risk and Key Assurances

31. The PIE of the subproject have limited experience in ADB's projects. To assist in the effective implementation of the EMP, the PIE will appoint a full-time management staff member for environmental and social affairs, meanwhile employ part-time Loan Implementation Environmental Consultant (LIEC) if needed. Pre-construction preparation and related institutional responsibility have been included in the EMP. All staff members are required to receive training on ADB environmental safeguard requirements and EMP implementation.

L. Conclusion

32. Through the environmental assessment process, it is concluded that the subproject has: (i) selected appropriate site and technologies to build one modern logistic park ; (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.

33. 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. This subproject will build one logistic park in Yan’an New District to provide warehousing and logistics service to the major commercial entities in Yan'an New District and will further improve the urban functions in Yan'an New District by greatly solving the existing storage problem of major commercial entities. The subproject will deliver significant positive social impacts. The proposed subproject will cover three land plots, which are Shuibao Daming Gong Logistics plot (plot 1), Hetaoshuta Logistics Park plot (plot 2) and B-type Bonded Area Logistics plot (plot 3). Shuibao Daming Gong Logistics plot crosses Renmin Road with Dongchen Road in the east, north Changzheng Road in the west, and Dongfanghong Avenue in the south. Hetaoshuta Logistics Park plot is located in the Hetaoshuta Village of Yan'an New District with Beichen Road in the west, North Transit Road in the north, and National Highway 210 in the east. The B-type Bonded Area Logistics plot faces Yanzhou Avenue in the east, Dongfanghong Avenue in the north, Jiaxing Street in the south, and Desheng North Road in the west.

3. Plot 1: Shuibao Daming Gong Logistics plot

The planned land plot covers a site area of 57184.45 m2 with a building area of 1,845.60 m2.The total floor area is 79,557.57 m2, among which the ground floor area is 2,268.96 m2 and the underground floor area is 55959.36 m2. The first underground floor area is 35,315.28 m2, of which the cold storage area is 14,641.20 m2 and the building materials warehouse area is 20,674.08 m2. The second underground floor area is 20,674.08m2.

4. Plot 2: Hetaoshuta Logistics Park plot

The planned land plot covers a site area of 15,1325.6 m2 with a building area of 58,904.05 m2. The total floor area is 207,939 m2, among which the ground area is 19,4319.9 m2 (including 106,179.02 m2 of building materials warehouse, 53459.52 m2 of grain, oil, non- staple food and daily supplies warehouses, 8,576m2 of cold storage and 26,105.36 m2 of comprehensive service building) , and the underground floor area is 13,618.69 m2.

5. Plot 3: B-type Bonded area logistics plot

The planned land plot covers a site area of 47,006.2 m2. The total floor area is 47,975.13 m2, of which the ground area is 41,937.13 m2 (including 4,950.05 m2 of single-layer bonded warehouse, 13,874.57 m2 of multi-layer bonded warehouse , 7,941.49 m2 of cold chain storage, 3,627.02 m2 of roughing processing workshop, 7,800 m2 of comprehensive service center and 4,104.00 m2 of customs office building) and the underground floor area is 6,038.00 m2.

B. Introduction of Borrower

6. Yan’an New District Municipal Public Utility Co., Ltd will be the PIE and responsible for implementing the component and administering and monitoring contractors and suppliers.

7. Yan'an New District Municipal Public Utilities Co., Ltd., was established on July 29, 2015 and its business scope mainly includes urban road engineering, municipal pipe network engineering, urban water supply engineering, environmental sanitation cleaning services, garbage disposal, landscaping, man-made attractions, urban park construction, public lighting engineering, wastewater treatment, urban district heating, real estate development, maintenance and operation of utility tunnel, advertising and parking services.

8. Yan'an New District Municipal Public Utilities Co., Ltd. has a registered capital of 150 million yuan with 14 departments and 318 employees. Its businesses cover 11 urban operation services including environmental cleaning, waste collection and treatment, public toilet management, road maintenance, public lighting, landscaping, water supply, wastewater treatment, maintenance and operation of utility tunnel, public bicycle management, and outdoor advertising management.

C. Report Purpose

9. Based on ADB's SPS 2009, this subproject has been classified as environmental Category B and thus an IEE including an EMP is required. This report, including the EMP is prepared following both national regulations and ADB’s environmental safeguard requirements specified in SPS 2009. The EMP is presented in Appendix I.

D. Approach to Report Preparation

10. This report has been prepared based on a domestic FSR; domestic EIA registration form; public consultations led by PIE and assisted by ADB TA consultants; and site visits, surveys and consultations undertaken by ADB TA consultants; public consultations with key stakeholders and affected persons; and site visits, surveys, consultations undertaken by ADB TA environmental consultants and ADB review mission discussions with the IA and relevant government agencies

E. Report Structure

11. This IEE report consists of an overview, nine chapters and an appendix. The structure of the report is as follows:

Executive Summary Summarizes the overall situation of the subproject.

I General Introduction Introduces the components of the IEE, the purpose of the report, the method of preparation and the structure.

II POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK Presents environmental laws and institutional frameworks in PRC and ADB, development of domestic EIA reports, and applicable environmental policies and standards.

III PROJECT DESCRIPTION Introduces the scope, components, location, main features, implementation arrangements, 9 budget and timing of the project.

IV DESCRIPTION OF THE ENVIRONMENT Introduces relevant natural profiles, current environmental status and socio-economic conditions in the subproject area.

V ANTICIPATED IMPACTS AND MITIGATION MEASURES Predicts the environmental impacts of subproject construction and operation, and proposes mitigation measures.

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 AND PUBLIC CONSULTATION Introduces the procedures and contents of information disclosure, the process of public participation and the results of the survey, and the main ways of public participation in the later phase.

VIII GRIEVANCE REDRESS MECHANISM Introduces the GRM for resolving complaints.

IX CONCLUSIONS Presents conclusions drawn from the assessment and recommendations.

Appendix I Appendix I presents the EMP, including required construction and operation phase environmental mitigation measures, EMoP, reporting requirements, and capacity building.

Figure I-1: Location of the subproject

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Applicable ADB Policies, Regulations and Requirements

15. The main applicable ADB policies, regulations, requirements and procedures for environmental assessment are the SPS 2009 and the Environmental Safeguards – A Good Practice Sourcebook (2012), which jointly provides the basis for this IEE. The SPS 2009 promotes good international practices, as reflected in internationally recognized standards such as the World Bank Group's Environmental, Health and Safety (EHS) Guidelines.

16. The SPS establishes an environmental review process to ensure that projects undertaken as part of programs funded through 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.

17. At an early stage in the project cycle, typically the project identification stage, ADB screens and categorizes proposed projects based on the significance of potential project impacts and risks. A project’s environment category is determined by the category of its most environmentally sensitive component, including direct, indirect, induced, and cumulative impacts. Project screening and categorization are undertaken to:

i) Reflect the potential environmental impacts of the project;

ii) Identify the type and level of EIA and institutional resources proportionate to the nature, scale, magnitude and sensitivity of the potential impacts of the proposed project; and

iii) Determine the requirements for information disclosure and public participation.

18. SPS 2009 assigns a proposed project to one of the four following categories:

i) Category A. Proposed project is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented; impacts may affect an area larger than the sites or facilities subject to physical works. A full EIA is required.

ii) Category B. Proposed project’s potential environmental impacts are less adverse and fewer in number than those of Category A projects; impacts are site-specific, few if any of them are irreversible, and impacts can be readily addressed through mitigation measures. An IEE, including an EMP, is required.

iii) Category C. Proposed project is likely to have minimal or no adverse environmental impacts. No EIA or IEE is required although environmental implications need to be reviewed.

iv) Category FI. Proposed project involves the investment of ADB funds to, or through, a financial intermediary.

19. According to the requirements of SPS 2009, this project has been classified as environment category B, and thus an IEE is required. 11

B. PRC Environmental Legal Framework

20. The EIA system of the PRC is integrated into the system of environmental protection laws and regulations. The system is based on the provisions of the Constitution of the PRC on environmental protection, with the basic principles of comprehensive links as the core and related laws on environmental protection as supplements, therefore working as a complete and relatively independent legal and regulatory system consisting of a number of mutually compatible environmental protection laws, regulations, rules, standards and international treaties. The laws and regulations used in this project are shown in Table II-1.

Table II -1: Applicable environmental laws and regulations to this subproject No. Law Year of Issue 1 Environmental Protection Law of the People's Republic of China 2015 2 Law of the People's Republic of China on Appraising of Environment Impacts 2018 Law of the People's Republic of China on the Prevention and Control of 3 Atmospheric Pollution 2018 Law of the Republic of China on the Prevention and Control of 4 People’s Water Pollution 2018 Law of the People's Republic of China on the prevention and control of 5 environmental pollution by solid waste 2016 Law of the People's Republic of China on Prevention and Control of Pollution 6 From Environmental Noise 2018 7 Law of the People's Republic of China on the Protection of Wildlife 2016 8 Law of the People’s Republic of China on Urban and Rural Planning 2008 Law of the People's Republic of China on the prevention and control of soil 9 pollution 2019 National and local regulatory regulations Regulations on the Administration of Construction Project Environmental 10 2018 Protection 11 Regulations of the People's Republic of China on the protection of wild plants 2015 12 Regulations of the People's Republic of China on Wild Plants Protection 2016 Regulation of the People's Republic of China on the Disclosure of 13 2019 Government Information Notice of the State Council on Printing and Distributing the Three-Year Action 14 2018 Plan for Winning the Blue Sky Defence War Notice of the State Council on Printing and Distributing the Action Plan for 15 2015 Water Pollution Prevention and Control Notice of the State Council on Printing and Distributing the Action Plan for 16 2016 Soil Pollution Prevention and Control 17 Shaanxi Province Regulations on Air Pollution Prevention and Control 2019 Shaanxi Province Regulations on Solid Waste Pollution Environment 18 2019 Prevention and Control 19 Xi’an Administrative Measures for the Classification of Domestic Waste 2019 Departmental rules Classified Management Directory of Construction Project Environmental 20 2018 Impact Assessment 21 Public Participation in Environmental Impact Assessment 2019 Source: ADB TA consultants

C. PRC Environmental Impact Assessment Framework and Procedures

21. The Classified Management Directory of Construction Project Environmental Impact Assessment (amended in 2018) issued by the former Ministry of Environmental Protection

12 stipulates which projects are required to prepare EIA reports, which projects are required to prepare a simplified tabular EIA report, and which projects are only required to fill out the EIA registration form. The Directory regulates:

i) Category A: Projects with significant adverse environmental impacts, for which a full EIA report is required;

ii) Class B: Projects with adverse environmental impacts which are of a lesser degree and/or significance than those of Category A, for which a simplified tabular EIA report is required; and

iii) Category C: Projects unlikely to have adverse environmental impacts, for which an EIA registration form is required.

22. A full EIA report for Category A and a simplified tabular EIA report for Category B are similar to ADB's EIA report and IEE report. A simplified tabular EIA report is similar to ADB's Category C project.

23. The Ministry of Ecology and Environment (MEE) of the PRC has promulgated a series of technical guidelines for the preparation of EIA (Table II-2). These guidelines include guidelines for conducting EIA, including atmospheric environment, ambient air quality, noise, surface water, groundwater, ecological and regional biodiversity, biodiversity monitoring, quality management of environmental monitoring, and public participation.

Table II-2: EIA Technical Guidelines No. Name Year of Issue 1 Technical Guidelines for Environmental Impact Assessment- General 2016 (HJ2.1-2016); 2 Technical Guidelines for Environmental Impact Assessment- Atmospheric 2018 Environment (HJ2.2-2018) 3 Technical Guidelines for Environmental Impact Assessment- Surface 2018 Water Environment (HJ/T2.3-2018) 4 Technical Guidelines for Environmental Impact Assessment- Groundwater 2016 Environment (HJ610-2016) 5 Environmental Impact Assessment Technical Guidelines- Acoustic 2009 Environment (HJ2.4-2009) 6 Environmental Impact Assessment Technical Guidelines- Ecological 2011 Impact (HJ19-2011) Source: ADB TA consultants

D. Domestic EIA

24. According to the Classified Management Directory of Construction Project Environmental Impact Assessment, this project belongs to "49, transportation, pipeline transportation and warehousing industry-180 warehousing (excluding oil depots, gas storage, coal storage)" (not included in warehousing and logistics distribution projects of toxic, hazardous and dangerous goods), therefore it is only necessary to fill in the EIA registration form in the construction project’s environmental impact registration and filing system (http://113.140.66.230:4680/REG/) to complete the filing without administrative approval. At present, the filing of the registration form of this subproject has been completed (Filing number: 201961060200000709), the registration status is shown in Figure II-1. 13

Figure II-1: Registration and filing

Table II-3: Documented information of EIA registration form

Environmental Project Name of Geographic Project Protection NO Investment Filing Number Date State Project location: Nature Investment (10,000yuan) (10,000yuan) Yan'an New Area Yan'an Green Renmin Road/ 201961060200 1 Urban District Yanzhou Avenue New 181609.79 135 2019/11/18 Published 000709 Demonstration /Hetaoshuta Village

E. Relevant International Agreements

25. The PRC has signed a number of international agreements regarding environmental and biological protection. Those which have potential application to the component are listed in Table II-4.

Table II-4: International agreements Year of No. Agreement Issue Ramsar Convention on Wetlands of International Importance Especially as 1 1975 Waterfowl Habitat Convention Concerning the Protection of the World Cultural and Natural 2 1986 Heritage

3 Convention on Biological Diversity 1993

4 UN Framework Convention on Climate Change 1994

United Nations Convention to Combat Desertification in Those Countries 5 1996 Experiencing Serious Drought and/or Desertification

6 Kyoto Protocol 2002

7 Stockholm Convention on Persistent Organic Pollutants 2004

8 Paris climate agreement 2015

9 Minamata Convention on Mercury 2017

Source: ADB TA consultants

F. Applicable PRC Environmental Standards

26. Standards issued by the MEE generally consist of environmental quality (ambient) standards applicable to the receiving environment and emission standards applicable to the pollution source. The former includes standards for ambient air quality, noise and vibration, surface water, groundwater, soil, etc. The latter includes standards for integrated wastewater discharge, construction and community noise, odor and air pollutants, etc. (Table II-5).

Table II-5: Environmental Quality Standards of the PRC

No. Standard Code/Year of Issue

1 Ambient Air Quality Standards GB 3095-2012 2 Quality Standards for Ground Water GB/T14848-2017 3 Environmental Quality Standards for Surface Water GB 3838-2002 4 Quality Standard for Acoustic Environment GB 3096-2008 Soil Environmental Quality- Management and Control standards for Soil 36600-2018 5 Pollution Risk at Construction Site GB 6 Noise Emission Standards at Construction Site Boundary GB 12523-2011 7 Noise Standards for Industrial Enterprises at Site Boundary GB 12348-2008 8 Emission standards for Odor Pollutants GB 14554-93 9 Integrated Emission Standards for Atmospheric Pollutants GB 16297-1996 10 Integrated Standards for Wastewater Discharge GB 8978-1996 11 Emission Standards for Social Life Noise GB 22337-2008 12 Standard of Environmental Vibration in Urban Area GB 10070-88 13 Technical Specifications for Regionalizing Environmental Noise Function GB/T 15190-2014 Source: ADB TA consultants

27. As noted above, ADB’s SPS requires borrowers to follow environmental standards consistent with good international practice as reflected in internationally recognized standards such as the World Bank (WB) Group’s EHS Guidelines. When host country regulations differ from these levels and measures, the borrower is to achieve whichever is more stringent. If less stringent levels or measures are appropriate in view of specific project circumstances, the borrower/client 15 is required to provide justification for any proposed alternatives. Both PRC standards and EHS guidelines are used in this assessment as described below.

1. Ambient air quality standards

(1) Ambient air quality standards

28. Air Quality Standards (GB3095-2012) has two classes of limit values; Class 1 standards apply to special areas such as natural reserves and environmentally sensitive areas, and Class 2 standards apply to all other areas, including urban and industrial areas.

29. The World Health Organization (WHO) Air Quality Guidelines are recognized as international standards and are adopted by the WB Group’s EHS Guidelines. In addition to guideline values, interim targets (IT) are given for each pollutant by the WHO as incremental targets in a progressive reduction of air pollution. The WHO guidelines and corresponding PRC standards are presented in Table II-6.

30. From a review of Table II-6, it can be observed that:

31. For TSP, there are PRC standards but no corresponding WHO guidelines. For PM10, PRC Class 2 annual average and 24-hour average standards meet WHO IT-1 guidelines (there are no 1-hour average standards or guidelines for either PRC or WHO). For PM2.5, PRC Class 2 annual and 24-hour standards meet WHO IT-1 guidelines (there are no 1-hour standards or guidelines 3 for either PRC or WHO). For SO2, WHO only has a 24-hour average guideline (0.125 mg/m ), which is slightly lower than the PRC standard (0.150 mg/m3). However, SO2 levels are low in the component area, and the component will only contribute low levels of SO2, so the very minor difference is inconsequential. For NO2, the PRC standard is equivalent to the WHO annual average guidelines, there is no WHO 24-hour average guideline; and the 1-hour average PRC standard is equivalent to the WHO guideline. For O3, the PRC class I 1-hour average standard is equivalent to the WHO 1-hour average guideline and PRC 1-hour average class II standard is equivalent to the WHO IT-1 1-hour average guideline. For CO, there are PRC standards but no corresponding WHO guidelines.

32. The PRC’s present Ambient Air Quality Standards (GB3095-2012) has two classes of limit values: Class 1 standards apply to special areas such as natural reserves, scenic spots and other areas that require special protection; Class II standards apply residential areas, mixed area of commercial, traffic and residential functions, cultural zone, industrial zone and rural area. Class I and Class II area implement Class I standard and Class II standard respectively. This project is located in the urban industrial zone therefore it belongs to the environmental Class 2 area that implements Class II standard.

33. The WHO air quality guidelines are recognized international standards and adopted by the WB Group's EHS guidelines. In addition to the guidance values, the WHO also sets a medium- term goal for each pollutant as incremental reduction target for the air pollution. The corresponding standard of WHO and the PRC are shown in Table II-6.

Table II-6: PRC Ambient Air Quality Standards and WHO Ambient Air Quality Guidelines, μg/m 3

PRC Ambient Air Quality Standard WHO/EHS Guidelines Air Quality Averaging phase parameter Air quality Class I Class II Interim Targets guideline Annual 80 200 NA NA TSP 24-hour 120 300 NA NA Annual 40 70 30-70 20 PM10 24-hour 50 150 75-150 50 Annual 15 35 15-35 10 PM2.5 24-hour 35 75 37.5-75 25 Annual 20 60 NA NA

SO2 24-hour 50 150 50-125 20 1-hour 150 500 NA NA Annual 40 40 NA 40

NO2 24-hour 80 80 NA NA 1-hour 200 200 NA 200 8-hour 100 160 160 100 O3 1-hour 160 200 NA NA 24-hour 4,000 4000 NA NA CO 8-hour 10,000 10000 NA NA Source: WHO Air Quality Guidelines (2006) in IFC EHS Guidelines (2007), and PRC GB 3095-2012

34. As can be seen from Table II-6:

(1) For TSP and CO, WHO has no relevant limit requirements; (2) For PM10 and PM2.5, the national standard’s Class-2 standard’s annual average and 24-hour average standard meet the WHO transitional phase target 1 (IT-1) standard; 3 (3) For SO2, WHO only has a 24-hour average guideline value (125 μg/ m ), which is slightly stringent than the national standard (150 μg/ m3).. (4) For NO2, WHO has no 24-hour average correlation standard, and the national standard’s average annual value and 1-hour average are consistent with the 1-hour average value in the WHO criterion. (5) For O3, the national standard’s Class-1 standard’s the 24-hour average concentration is consistent with the equivalent of the WHO guidelines, and the national standard’s Class-2 standard’s the 24-hour average is consistent with the WHO transitional phase target 1 (IT-1).

35. Overall, the PRC standards show a high degree of equivalency to the WHO guidelines or IT-1 values and are adopted for use in this report except 24-hour average SO2 WHO guideline value.

(2) Air Pollutant Emission Standards

36. The subproject is located in the New District of Yan'an City. During the construction phase, the dust will be controlled to meet the limits in Dust Emission Limit of Construction Site Boundary (DB61/1078-2017). The standard values are shown in Table II-7.

Table II-7: Dust Emission Limit of Construction Site Boundary (unit: mg/m3) Hourly average Monitoring No. Pollutant Cconstruction stage concentration limit points (mg/m 3) Construction dust The highest Demolition, earthwork and 1 ≤0.8 (i.e. total concentration foundation treatment works suspended solids at the Foundation, main structure and 2 ≤0.7 TSP) boundary decoration engineering The highest concentration outside the boundary should generally be set within 10m outside the boundary of the wind direction under the fugitive emission source. If the maximum landing concentration of fugitive emissions is expected to exceed the 10m range, the monitoring point can be moved to the vicinity of the highest expected concentration. Source: ADB TA consultants

(3) Cooking Fume Emission Standards

37. The subproject will have a canteen during operation. Cooking fume from the canteen will follow Emission standard of cooking fume (GB18483-2001). The standard values are presented in Table II-8.

Table II-8: Emission standard of cooking fume (unit: mg/m3) Small Medium Large Number of ovens is Capacity Number of ovens is Number of ovens is no less than 6 and no less less than 3 less than 6 than 3 Emission concentration 2.0 (mg/m3) Minimum cooking fume 60 75 85 removal efficiency (%)

2. Integrated Standards for Wastewater Discharge

38. The EHS Guidelines indicate that wastewater discharged to public or private wastewater treatment systems should: i. meet the pretreatment and monitoring requirements of the sewer treatment system into which it discharges; ii. not interfere, directly or indirectly, with the operation and maintenance of the treatment systems, or pose a risk to worker health and safety, or adversely impact characteristics of residuals from wastewater treatment operations; and iii. be discharged into municipal or centralized wastewater treatment systems that have adequate capacity to meet local regulatory requirements for treatment of wastewater generated from the project.

39. The domestic wastewater generated by the Shuibao Daming gong Logistics plot and B- type Bonded Area Logistics plot is pretreated by the septic tank and discharged to the municipal sewage pipe network. The domestic wastewater of the Hetaoshuta Logistics Park plot is pretreated by the septic tank and transported by sewage truck to the wastewater treatment plant. The wastewater discharges by the subproject will be required to meet Class III maximum

18 acceptable concentrations (MACs) in Integrated Standards for Wastewater Discharge (GB8987- 1996), and the WWTP discharges are required to meet Class 1A of Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants (GB 18918-2002). The Standards are shown in Table II-9.

Table II-9: Integrated Standards for Wastewater Discharge (Unit mg/L) Maximum acceptable concentration (MAC) mg/L (except pH) No. Pollutant Class C 1 PH 6-9 2 SS 400 3 COD 500 4 BOD5 300 5 Petro 20 6 Animal and vegetable oil 100 Source: ADB TA consultants

3. Surface Water

40. PRC’s Surface Water Ambient Quality Standard (GB3838-2002) defines five water quality categories for different environmental functions. For example, Category I is the best, such as water at sources of rivers and National Nature Reserves. Category V is the worst quality, suitable only for agricultural and scenic water uses. Based on information collection and site visit, Category V water quality standard (see Table II-10) is applicable for the surface water near the subproject site. There are no applicable EHS guidelines or target for water quality in this context, and the PRC standard is adopted for use in this EIA report.

Table II-10: Applicable surface water standard. Unit: mg/l Water Quality Category No. Parameter I II III IV V 1 pH 6-9 6-9 6-9 6-9 6-9 90% 2 Dissolved Oxygen saturation ≥6 ≥5 ≥3 ≥2 or ≥7.5 3 CODMn ≤2 ≤4 ≤6 ≤10 ≤15

4 CODCr ≤15 ≤15 ≤20 ≤30 ≤40

5 BOD5 ≤3 ≤3 ≤4 ≤6 ≤10

6 NH3-N ≤0.15 ≤0.5 ≤1.0 ≤1.5 ≤2.0 TP ≤0.02 ≤0.1 ≤0.2 ≤0.3 ≤0.4 7 For lakes and

reservoirs ≤0.01 ≤0.025 ≤0.05 ≤0.1 ≤0.2 TN (N for lakes and 8 2.0 reservoirs) ≤0.2 ≤0.5 ≤1.0 ≤1.5 ≤ 9 Copper ≤0.01 ≤1.0 ≤1.0 ≤1.0 ≤1.0 10 Zinc ≤0.05 ≤1.0 ≤1.0 ≤2.0 ≤2.0 11 Fluoride ≤1.0 ≤1.0 ≤1.0 ≤1.5 ≤1.5 12 Selenium ≤0.01 ≤0.01 ≤0.01 ≤0.02 ≤0.02 13 Arsenic ≤0.05 ≤0.05 ≤0.05 ≤0.1 ≤0.1 14 Total Mercury ≤0.00005 ≤0.00005 ≤0.0001 ≤0.001 ≤0.001 15 Cadmium ≤0.001 ≤0.005 ≤0.005 ≤0.005 ≤0.01 16 Hexavalent Chromium ≤0.01 ≤0.05 ≤0.05 ≤0.05 ≤0.1 17 Lead ≤0.01 ≤0.01 ≤0.05 ≤0.05 ≤0.1 19

18 Cyanide ≤0.005 ≤0.05 ≤0.2 ≤0.2 ≤0.2 19 Volatile Phenol ≤0.002 ≤0.002 ≤0.005 ≤0.01 ≤0.1 20 Sulfide ≤0.05 ≤0.1 ≤0.2 ≤0.5 ≤1.0 21 Petroleum ≤0.05 ≤0.05 ≤0.05 ≤0.5 ≤1.0 22 Anionic surfactant ≤0.2 ≤0.2 ≤0.2 ≤0.3 ≤0.3 23 Coliforms ≤200 ≤2000 ≤10000 ≤40000 ≤40000 CODMn = permanganate index; CODcr = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NH3- N= ammonia nitrogen; TP = Total Phosphorus; TN = Total Nitrogen. Source: PRC GB3838-2002.

4. Ground Water

41. PRC’s Groundwater Water Ambient Quality Standard (GB/T14848-2017) also defines a number of water quality categories for different environmental functions. As Shallow-groundwater near the subproject site is primarily used for irrigation, the Category III standard is applicable (Table II-11). There is no equivalent standard recommended in the EHS Guidelines, and the PRC standard is adopted for use in this EIA report.

Table II-11: Applicable groundwater standard No. Parameter Unit Category III Standard 1 pH - 6.5-8.5

2 CODMn mg/l 3.0 3 Sulfate mg/l 250 4 Chloride mg/l 250 5 Volatile Phenols mg/l 0.002

6 Total hardness (CaCO3) mg/l 450

7 Nitrate NO3- mg/l 20

8 Nitrite NO2- mg/l 1.0

9 NH3-N mg/l 0.5 10 Molybdenum mg/l 0.2 11 Cyanide mg/l 0.05 12 Cadmium mg/l 0.005 13 Chromium VI mg/l 0.05 14 Arsenic mg/l 0.01 15 Zinc mg/l 1.0 16 Fluoride mg/l 1.0 17 Lead mg/l 0.01 18 Iron mg/l 0.3 19 Manganese mg/l 0.1 20 Copper mg/l 1.0 21 Selenium mg/l 0.01 22 Benzene mg/l 0.01 23 Methylbenzene mg/l 0.7 24 Total coliforms /L 3.0 25 Colony forming unit /L 100 26 Mercury mg/l 0.001 27 Total dissolved solid mg/l 1000

CODMn = permanganate index; CODcr = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NO3- = Nitrate; NO2- = Nitrite; NH3-N= ammonia nitrogen; TP = Total Phosphorus; TN = total nitrogen. Source: PRC GB/T14848-2017.

5. Noise

(1) Quality Standard for Acoustic Environment

42. The PRC Quality Standards for Acoustic Environment (GB3096-2008) is compared with the relevant international standards of the WHO. The categories within the standard are not directly comparable, but PRC Class-1 standard is equivalent to the WHO Class-1 standard. The PRC Class-2 standard is less stringent than the WHO Class-1 standard, and PRC Class-2 and Class-3 standards are more stringent than the WHO Class-2 standard. According to the Yan’an City Acoustic Environmental Function Zoning, this project’s the Shuibao Daming Gong Logistics plot and the B-type Bonded Area Logistics plot both fall into Class-2 functions, where the Acoustic Environment Class-2 standard is implemented, that is, 65 dB(A) in the daytime and 55 dB(A) in the nighttime; the Hetaoshuta Logistics Park plot is located in the Class- 4a functional area, where the Class- 4a standard is implemented, that is, 70 dB(A) in the daytime and 55 dB(A) in the nighttime. Based on site visit, there are sensitive receptors nearby the subproject and Category II is applicable for sensitive receptors. The standards are shown in Table II-12.

Table II-12: Comparison table between PRC Standard for Environmental Quality Standard for Noise and International Guidelines International Standards PRC Standards Leq dB(A) One Hour Leq dB(A) Comparison Day Night Day Night Category 06-22h 22-06h 07-22h 22-07h 0: Areas needing extreme quiet, 50 40 such as special health zones 1: acoustic environment functional area: refers to the area where residential, medical and health, cultural and sports, 55 45 scientific research and design, administrative office are the main functions, therefore it is The two are necessary to keep quiet for all. not directly comparable, 2: acoustic environment WHO Class I: Who Class I: but the PRC functional zone: refers to the residential, residential, Class-3 area where the main functions institutional, institutional, standard is are commercial finance and educational: 55 educational: 45 more stringent market trade, or mixed area of 60 50 than the WHO commercial, traffic and WHO Class II: WHO Class II: Class-2 residential functions, therefore it industrial, industrial, standard. This is necessary to keep quiet for commercial: 70 commercial: 70 report adopts the residential area. the PRC standard for 3: acoustic environment evaluation. functional zone: refers to the area where industrial production, warehousing and logistics are the main functions, 65 55 therefore it is necessary to prevent industrial noise from seriously affecting the surrounding environment. 21

4a: acoustic environment functional zone: refers to the area within a certain area on both sides of the traffic trunk 70 55 line, therefore it is necessary to prevent traffic noise from seriously affecting the surrounding environment. Source: ADB TA consultants

(2) Noise Emission Standards for Industrial Enterprises at Site Boundary

43. According to the PRC Noise Emission Standards for Industrial Enterprises at Site Boundary (GB12348-2008), the Shuibao Daming Gong Logistics plot and the B-type Bonded Area Logistics plot fall into the Class-2 functional zones, where the acoustic environment Class-2 standard is implemented，that is, 65 dB(A) in the daytime and 55 dB(A) in the nighttime. the Hetaoshuta Logistics Park plot falls into the Class- 4a functional area, where Class-4a standard is implemented, that is, 70 dB(A) in the daytime and 55 dB(A) in the nighttime. Specific standard values are shown in Table II-13.

Table II-13: Noise Emission Standards for Industrial Enterprises at Site Boundary Unit: dB(A) Environmental functional Daytime Nighttime zones at enterprise 06-22h 22-06h boundary 0 50 40 1 55 45 2 60 50 3 65 55 4a 70 55 Source: ADB TA consultants

(3) PRC Noise Emission Standards at Construction Site Boundary

44. During the construction phase, the noise evaluation shall be carried out in accordance with the PRC Noise Emission Standards at Construction Site Boundary (GB12523-2011), which limits construction noise levels at the construction site boundary to70dB(A) in the daytime and 55dB(A) in the nighttime. Specific standards are shown in Table II-14.

Table II-14: PRC Noise Emission Standards at Construction Site Boundary Unit: dB(A) Day Leq dB(A) Night Leq dB(A)

70 55 Source: ADB TA consultants

III. PROJECT DESCRIPTION A. The Project

45. This subproject will build one logistic park in Yan’an New District to provide warehousing and logistics service to the major commercial entities in Yan'an New District and will further improve the urban functions in Yan'an New District by greatly solving the existing storage problem of major commercial entities. The subproject will deliver significant positive social impacts. The proposed subproject will cover three land plots, which are Shuibao Daming Gong Logistics plot (plot 1), Hetaoshuta Logistics Park plot (plot 2) and B-type Bonded Area Logistics plot (plot 3).

46. Plot 1: Shuibao Daming gong Logistics plot

The planned land plot covers a site area of 57184.45 m2 with a building area of 1,845.60 m2. The total floor area is 79,557.57m2, among which the ground floor area is 2,268.96 m2 and the underground floor area is 55,959.36 m2. The first underground floor area is 35,315.28m2, of which the cold storage area is 14,641.20m2 and the building materials warehouse building area is 20,674.08 m2. The second underground floor area is 20,674.08 m2.

47. Plot 2: Hetaoshuta Logistics Park plot

The planned land plot covers a site area of 15,1325.6 m2 with a building area of 58,904.05 m2. The total floor area is 207,939 m2, among which the ground area is 19,4319.9 m2 (including 106,179.02 m2 of building materials warehouse is, 53459.52 m2 of grain, oil, non- staple food and daily supplies warehouses, 8,576m2 of cold storage and 26,105.36 m2 of comprehensive service building) , and the underground floor area is 13,618.69 m2.

48. Plot 3: B-type Bonded area logistics plot

The planned land plot covers a site area of 47,006.2 m2. The total floor area is 47,975.13 m2, of which the ground area is 41,937.13 m2 (including 4,950.05m2 of single-layer bonded warehouse, 13,874.57 m2 of multi-layer bonded warehouse , 7,941.49 m2 of cold chain storage, 3,627.02 m2 of roughing processing workshop, 7,800m2 of comprehensive service center and 4,104.00 m2 of customs office building), and the underground floor area is 6,038.00 m2.

B. Project Location

49. The proposed subproject is located at Yan’an New District, Baotao District, Yan’an City and will cover three land plots, which are Shuibao Daming Gong Logistics plot (plot 1), Hetaoshuta Logistics Park plot (plot 2) and B-type Bonded Area Logistics plot (plot 3). Shuibao Daming Gong Logistics plot crosses Renmin Road with Dongchen Road in the east, north Changzheng Road in the west, and Dongfanghong Avenue in the south. Hetaoshuta Logistics Park plot is located in the Hetaoshuta Village of Yan'an New District, with Beichen Road in the west, North Transit Road in the north, and National Highway 210 in the east. B-type Bonded Area Logistics plot faces Yanzhou Avenue in the east, Dongfanghong Avenue in the north, Jiaxing Street in the south, and Desheng North Road in the west.

Figure III-1: Location of the Subproject C. Project Rational

50. According to the Medium & Long-term Plan for the Development of Logistics Industry in Shanxi Province (2015-2020), Yan'an City will be positioned as a "second-tier node city". According to the National Logistics Hub Layout & Construction Plan, Yan’an City is planned as a "City as Carrier of Landport-type National Logistics Hub".

51. Yan’an has a well-developed railway, highway and aviation transportation network, and has become an important hub. At present, Yan'an has air routes to Xi'an, Beijing, Guangzhou, Chongqing, Shanghai, etc. After the new airport is operated, it will have more domestic and international routes. Now the Inner Mongolia-Central China railway freight transportation channel has been completed and operated, the railway freight transportation between Xi'an and Yan'an is operating now. The transfer time will be further shortened to around one hour after the Xi'an- Yan'an high-speed railway is operated. The Baotou-Maoming Expressway (G65), Qingdao- Lanzhou Expressway (G22), Qingdao-Yinchuan Expressway (G20) and the G210 national highway pass through Yan’an City and of Yan’an City has a good highway transportation condition.

52. Yan'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region. Meanwhile, warehouse and express delivery transfer sites in Yan'an old urban area featured scarcity, scattered distribution and small size. Most of those sites were located in the outskirts in Yan'an old urban area with an uneven distribution, limited coverage range and long distance away from the urban area, which can’t meet the development needs of Yan'an City. The capacity of the existing logistics center located in the

Yan’an old urban area is not sufficient to meet the demand of the Yan’an old urban area. This subproject will build one logistic park in Yan’an New District to provide warehousing and logistics service to the major commercial entities in Yan'an New District and will further improve the urban functions in Yan'an New District by greatly solving the existing storage problem of major commercial entities. The subproject will deliver significant positive social impacts. Once operational , the subproject will : (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

D. Project Scope

(1) Shuibao Daming gong Logistics plot

53. The Shuibao Daming Gong Logistics plot covers an area of 57,184.45 m2 and most of the facilities are underground. The ground floor area is 2,268.96 m2. The first underground floor area is 35,315.28 m2, of which the cold storage area is 14,641.20 m2 and the building materials warehouse area is 20,674.08 m2. The second underground floor area is 20,674.08 m2.

(2) B-type Bonded area logistics plot

54. The B-type Bonded area logistics plot covers an site area of 47006.2 m2 and its main facilities include single-layer bonded warehouse logistics of 4,950.05 m2, multi-layer bonded warehouse logistics (3F) of 13,874.57 m2, cold chain storage center (3F/-1F) of 7,941.49 m2, rough processing workshop (1F/-1F) of 3,268.02 m2, integrated service center (4F) of 7,800 m2, and Customs office building (5F) of 4,104.00 m2. rough processing workshop mainly package agricultural products such as millet.

(3) Hetaoshuta Logistics Park plot

55. The Hetaoshuta Logistics Park plot covers an area of 151,325.6 m2 and its main facilities include building materials warehouse of 104,742.02 m2, warehouse for grain, oil, non-staple food and domestic suppliers of 52,800 m2, cold storage of 26,105.36 m2, and comprehensive service building of 8,576 m2.

56. Land use information of the subproject is presented in Table III-1,Table III-2, and Table III-3 for the indicators of the subproject.

57. Selection of the tenants for office building and storage shall follow international best practice and the PRC standards and regulations, if applicable.

Table III-1: Land Use Information of Shuibao Daming Gong Logistics plot Technical and Economic Indicators for planned land plot Category Quantity Unit Remarks Planned site area 57184.45 m2 85.78 acres Total floor area 79,557.57 m2 Ground floor area 2,268.96 m2 Underground floor area 55,959.36 m2 First underground floor area 35,315.28 m2 Cold storage floor area 14,641.20 m2

Building materials warehouse floor area 20,674.08 m2 Second underground floor area 20,674.08 m2 25

Building floor area 1,845.60 m2 Building density 3.23% Floor area ratio 0.040 Total number of parking spaces 531 Vehicle Source: ADB TA consultants

Table III-2: Land Use Information of B-type Bonded Area Logistics plot Category Quantity Unit Remarks Planned site area 47,006.2 m2 70.51 acres Floor area ratio 0.89 Total floor area 47,975.13 m2 Ground floor area 41,937.13 m2 Single-layer bonded warehouse logistics 4,950.05 m2 Multi-layer bonded warehouse logistics 13,874.57 m2 (3F) including Cold Chain Storage Center (3F/-1F) 7,941.49 m2 Rough machining room (1F/-1F) 3,267.02 m2 Integrated service center (4F) 7,800 m2 Customs office building (5F) 4,104.00 m2 Underground floor area 6,038.00 m2 Building density 30.41% Greening rate 20.03% Total number of parking spaces 213 Vehicle Truck parking space 47 Vehicle including Passenger car parking space 166 Vehicle Source: ADB TA consultants

Table III-3: Land Use Information of the Hetaoshuta Logistics Park plot Technical and Economic Indicators for planned land plot Category Quantity Unit Remarks Planned site area 151325.6 m2 226.98 acres Total land area 208184 m2 Groundfloor area 194565.3 m2 Building materials 104742.02 m2 Grain, oil, non-staple food and life including 52800 m2 logistics Integrated service building 26105.36 m2 13% Cold storage 8576 m2 Underground floor area 13618.69 m2 Building floor area 58904.05 m2 Building density 38.93% Floor area ratio 1.29 Greening rate 25% Total number of parking spaces 47 Vehicle Passenger car 35 Vehicle including Truck 12 Vehicle Source: ADB TA consultants

58. The layout of the three plots are presented in Figure III-2, Figure III-3 and Figure III-4.

Figure III-2: Layout of Shuibao Daming Gong Logistics plot

Figure III-4: Layout of B-type Bonded Area Logistics plot

Figure III-5: Layout of Hetaoshuta Logistics Park plot

E. Implementation Arrangements

59. Shaanxi Provincial Transport Department (SPTD) will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. Yan’an New District Municipal Public Utility Co., Ltd will be the subproject implementing entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers. A project management office (PMO) by Foreign Capital Utilization Center of SPTD will be responsible for day-to-day management of the subproject

F. Energy Consumption and Emission

60. During operation phase, the estimated annual handling capacity will be 600,000 tons. Annual water consumption will be 321,700 tons and power consumption will be 23.3595 million kWh. Urban district heating will be utilized in the subproject for heating.

61. The subproject will generate domestic wastewater during operation. The subproject will have 70 staff during operation and daily wastewater generation will be 6.72 m3. The domestic wastewater analysis data is presented in Table III-4. The domestic will be discharged to septic tank then discharged to municipal sewer system and finally treated in WWTP in Yan’an New District.

62. The subproject will generate domestic waste and waste package materials during operation. The subproject will have 70 staff during operation and daily waster generation will be 0.07 tons. The annual waste package materials will be 1.5 tons.

Table III-4: Wastewater analysis data COD Ammonia Petroleum No. Item Flow (m3/d) (mg/L) nitrogen (mg/L) (mg/L) 1 Domestic wastewater 6.72 350 25 20

Standard NA NA ≤500 ≤20

63. The subproject will generate air pollutants during operation which are mainly from the transportation vehicles. The annual emission of NOx, PM2.5 and CO2 emission will be 10.548 tons, 0.263 tons and 750 tons respectively.

64. The subproject will generate cooking fume during operation from the canteen. The concentration of generated cooking fume is 0.58 mg/m3 and the discharged cooking fume is 0.15 mg/m3 after treatment. Daily discharged cooking fume is 28g.

65. The subproject will generate noise during operation. The noise is mainly from the transportation vehicles and transfer equipment. With mitigation measures, the noise at the site boundaries and nearby sensitive receptors can meet relevant PRC standards.

66. The subproject will use coolants for cold storage during operation. Now the coolants have not been confirmed because design of the cold storage room is not finished yet now. Only coolants with lower greenhouse gas impacts (e.g. “R32” or “R290”) and are not classified as ozone depleting substance will be used in the subproject.

F. Due Diligence for Associated and Existing Facilities

67. Due diligence was conducted to determine the presence and extent of associated and/or existing facilities at the project sites. Associated facilities are those which are not funded by the project and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project (SPS 2009: 31). The subproject does not include any associated facilities.

68. The subproject-funded facilities will be located and constructed within existing undeveloped construction land. Existing facilities and associated facilities are not identified. The subproject facilities will depend on existing municipal services for domestic water sources, and for disposal of wastewater and solid waste.

69. Water supply. The subproject will source domestic water from municipal water supply system from Yan’an Urban Water Supply Plant which sources water from groundwater. Domestic EIA for the plant was approved in August 2002 (capacity 500,000 m3/day) and no compliance issues have been documented.

70. Wastewater treatment. Wastewater of the subproject will comprise domestic sewage (staff), which will be discharged to the Yan’an New District Waste Water Treatment Plant (WWTP). Domestic EIA for the WWTP was approved in July 2013 (capacity 50,000 m3/day) and no compliance issues have been documented.

71. Solid waste management. The subproject will generate domestic waste, kitchen waste and waste package materials during operation. Domestic waste will be collected by the local sanitary departments and treated at Yan’an City landfill site (EIA approved May 2009; capacity 500 ton/day). The waste package materials will be sold to manufactures for recycling. Kitchen waste will be collected, transferred and disposed by a certificated third-party company.

72. The due diligence confirms that all municipal facilities: (i) are operating in accordance with approved domestic EIAs and management plans; and (ii) for the water supply plant, landfill site, and WWTP, have the capacity to meet the subproject requirements. No past or present concerns related to impacts on the environment were identified. Based on this information, the due diligence described here is concluded to be adequate per ADB’s SPS requirements.

IV. DESCRIPTION OF THE ENVIRONMENT

A. Description of the Region

1. Overview of Shaanxi Province

73. Shaanxi Province is located in the northwestern part of China between 105°29′~111°15′ east longitude and 31°42′~39°35′ north latitude. Shaanxi is generally long from north to south and narrow from east to west and the distance from north to south is about 880 km and from east to west is about 160-490 km. The province runs across two major river basins-Yellow River Basin and Yangtze River Basin. It is bordered by the Inner Mongolia Autonomous Region to the north, Shanxi province to the east, Henan and Hubei provinces to the southeast, Chongqing municipality and Sichuan province to the south, Gansu province to the west, and the Hui Autonomous Region of Ningxia to the northwest. The Yellow River constitutes Shaanxi’s entire eastern border with

Shanxi. Shaanxi is an important portal connecting New Eurasian Continental Bridge to northwest, southwest, north, and central China. Shaanxi is the province with the largest number of neighboring provinces in China. The easternmost point of Shaanxi Province is located in Huangpu Town, Fugu County of Yulin City, the westernmost point is in Qingmuchuan Town, Ningqiang County of Hanzhong City, the southernmost point is in Huaping Town, Zhenping County of Ankang City, and the northernmost point is in Gucheng Town, Fugu County of Yulin City.

74. Shaanxi is divided into ten prefecture-level divisions including one sub-provincial city- Xi’an. The ten prefecture-level divisions are subdivided into 30 prefecture-level cities, six county- level divisions and seventy-one counties.

75. In 2019, the population of the province was 38.76 million. The land area is 205,600 km2. In 2019, Shaanxi’s GDP was CNY 2,579.317 billion, of which the primary sector accounted for 7.8% or CNY 199.093 billion; the secondary sector accounted for 46.4% or CNY 1,198.075 billion; and the tertiary sector accounted for 45.8% or CNY 1,182.149 billion.

76. Due to its large span in latitude, Shaanxi has a variety of climates. Under the Köppen climate classification, the northern parts, including the Loess Plateau, have either a cold arid or cold semi-arid, with cold and very dry winters, dry springs and autumns, and hot summers. The area known as Guanzhong is mostly semi-arid, though there are a few areas with a humid subtropical climate, with cool to cold winters, and hot, humid summers that often see early-season heatwaves. The southern portion is much more humid and lies in the humid subtropical zone, with more temperate winters and long, hot, humid summers. Annual mean temperature is roughly between 8 to 16°C, with January temperatures ranging from −11 to 3.5°C and July temperatures ranging from 21 to 28°C.

77. Shaanxi is considered one of the cradles of Chinese civilization. Thirteen feudal dynasties established their capitals in the province during a span of more than 1,100 years, from the Zhou Dynasty to the Tang Dynasty. The province's principal city and current capital, Xi'an, is one of the four great ancient capitals of China and is the eastern terminus of the Silk Road, which leads to Europe, the Arabian Peninsula and Africa. Under the Han Dynasty, the Northern Silk Road was expanded to advance exploration and military purposes to the west. This Northern Silk Road is the northernmost of the Silk Roads and is about 2,600 km in length. It connected the ancient Chinese capital of Xi'an to the west over the Wushao Ling Pass to Wuwei and emerging in Kashgar before linking to ancient Parthia.

78. Shaanxi has abundant biological resources and outstanding diversity. Qinling and Bashan is known as "biological gene bank". The diversity of ecosystems, species, and genetic genes in Shaanxi is typical and representative in China and even in East Asia. The province's forest land area is 12.26665 million hectares which ranks 10th in the PRC and the forest area is 8.533332 million hectares which ranks 11th in the PRC. The living wood growing stock in Shaanxi is 424 million m3, ranking 11th in the PRC. Natural forests are mainly distributed in Qinling, Bashan, Guanshan, Huanglong Mountain and Qiaoshan. The grasslands belong to temperate grasslands and mainly distributed in northern Shaanxi. The wildlife resources are abundant in Shaanxi. There are 604 species of terrestrial vertebrates and 380 species of birds. Among them, 16 species including panda, golden monkey, takin, and cymbals are listed as national first-class protected wilds animals.

2. Overview of Yan'an City

79. Yan'an is located in northern Shaanxi on the south-central part of the Loess Plateau, with latitude spanning 35°21′–37°31′N and longitude 107°41′–110°31′E. It borders Yulin to the north, Xiangyang, Tongchuan, and Weinan to the south, Linfen and Lüliang (Shanxi) to the east, and Qingyang (Gansu) to the west. Elevations generally increase from southeast to northwest, and the average elevation is over 1,000 m.

Yulin City

Yan’an City

Tongchuang City

Weinan City Xian’yang City

Baoji City

Shangluo City Hanzhong City

An’kang City

Figure IV-1: Location of Yan'an City in Shaanxi Province (scale: 1:7,000,000)

80. Yan’an is divided into 13 county-level divisions and is presented in Figure IV-2.

Figure IV-2: Administrative Division of Yan'an City

B. Physical Resources

1. Location

81. Yan'an City is located in the north of Shaanxi Province, in the middle reaches of the Yellow River, and in the central and southern parts of the Loess Plateau. It borders Yulin of Shaanxi Province in the north, Xianyang, Xi’an, Tongchuan and Weinan of Shaanxi Province in the south, Linfen and Luliang of Shanxi Province in the west, and Qingyang of Gansu Province in the west. The city is located between 35°21′-37°31′ north latitude and 107°41′-110°31′ east longitude, with a total area of 37037 km2. Yan'an belongs to the hilly and gully region of the Loess Plateau. The landform of Yan’an is dominated by the Loess Plateau and hills. Elevations generally increase from southeast to northwest, with an average elevation of 1,200m, while its highest point is in the top of the mountain in Wuqi County, with an altitude of 1,809.8m. The lowest point is in the Hou’er 33

River in Jiyi Town, Yichuan County. Main landform of Northern Yan'an City are loess ridge and gully while southern part are loess tableland and gully.

2. Climate

82. Yan'an has a humid continental climate (Köppen climate classification Dwa) that borders on a steppe climate (Köppen BSk), with cold, dry, and moderately long winters, and hot, somewhat humid summers. Spring and autumn are short transition seasons in between. The annual average temperature is 9.3°C, with 22.9°C in the summer and -6.7°C in the winter. The extreme highest temperature in summer is 39.7°C. The coldest month is January, while the extreme lowest temperature is -25.4 °C. The area receives 511 mm of precipitation. With monthly percent possible sunshine ranging from 49% in September to 64% in January, the city receives 2,449 hours of sunshine per year.

3. Hydrology

83. The main surface water bodies near the subproject are Yellow River and Yanhe River. Yanhe River is about 10 km away in south and the Yellow river is about 80 km way in east. The groundwater type in Yan’an is relatively simple and can be divided into two categories- Quaternary pore phreatic water and bedrock fissure water.

4. Economy

84. In 2019, Yan’an had a population of 2.26 million and gross domestic product (GDP) of Yan'an was 166.389 billion yuan, of which the primary sector accounted for 8.97% or CNY 14.933 billion; the secondary sector accounted for 60.1% or CNY 99.985 billion; and the tertiary sector accounted for 30.9% or CNY 51.471 billion. Yuan. The GDP per capita was 35,188 yuan.

85. Yan'an City is a famous historical and cultural city in China with rich cultural resources. In 2018, Yan'an received 63.44 million domestic and foreign tourists with an increase of 25.4%. the revenues from tourism reached 41.07 billion yuan with an increase of 37.5%.

5. Formation lithology

86. Yan'an City, located in the southeast corner of the Erdos monoclinic structure in Lutai platform of North China belongs to Mesozoic sedimentary rock series in terms of composition and structure. The subproject, located in the Tier-1 terrace at the right bank of gully to the left side of the Yanhe River, enjoys flat and open terrain. The area has a single landform and no adverse geological effect with stable soil layer under the basement.

6. History

87. Yan'an was populated at least as early as the Sui Dynasty. The Sui Dynasty established a military base in Yan'an. The area became an important defensive outpost for the subsequent Tang dynasty. In medieval China, Yan'an was called Yanzhou from the Western Wei Dynasty to 1089, when it was renamed Yan'an. Yanzhou was a location of strategic military importance for the Chinese empire and Tanguts of the Western Xia Dynasty. It was once successfully defended by the Song Dynasty (960–1279) era Chinese scientist, statesman, and general Shen Kuo (1031–1095 AD). However, it was eventually taken over by the Tanguts in 1082 once Shen's defensive victories were marginalized and sacrificed by the new Chancellor Cai Que (who handed the city over to the Tanguts as terms of a peace treaty). Yan'an and the whole

34 of Shaanxi were taken over by the Mongols in the late 1220s, only after their leader Genghis Khan had died during the siege of the Western Xia capital in 1227. The city was maintained by the successive Chinese Ming Dynasty (1368–1644), as well as the Qing Dynasty (1644–1911).

C. Ambient Environment Baseline

1. Environmental Monitoring of Acoustic Environment Quality

88. Baseline environmental monitoring was conducted at the subproject site. A third party environmental monitoring company- Shaanxi Provincial Traffic Environmental Monitoring Station Co., Ltd was engaged to carry out the acoustic environment quality monitoring. The monitoring points are presented in the Figure IV-4.

89. 11 noise monitoring points were selected and are located in plot 1, plot 2, plot 3 and sensitive receptors. Informant of the monitoring points are shown in Table IV-1.

Table IV-1: Monitoring points No. Name of Point Noise monitiroing location Monitoring requirements Two monitoring points are at north Continuous monitoring for Hetaoshuta Logistics Park 1 and east boundaries of the plot and 2 days including daytime plot one point is at the Hetaoshuta Village. noise and nighttime noise Four monitoring points are at the levels. Shuibao Daminggong 2 east, west, south and north The monitoring point is Logistics plot boundaries. located 1m away from the Four monitoring points are at the boundary, and the point B-type Bonded Area 3 east, west, south and north height is 1.2m above the Logistics plot boundaries. ground. Source: ADB TA consultants

90. The monitoring was carried out at over a 48-hour period from October 30, 2019 to November 1, 2019. Weather conditions were sunny and cloudless with wind speed less than 5.0 m/s, which is in compliance with relevant PRC meteorological requirements for noise monitoring.

91. Monitoring was undertaken with multi-functional ambient noise detectors. Monitoring was undertaken in accordance with the relevant requirements in PRC Environmental Quality Standards for Noise (GB3096-2008).

92. The results of the noise monitoring are shown in Table IV-2.

Table IV-2: Noise monitoring of plant boundary noise Unit: dB(A) Monitoring result dB(A)

First day Second day Main sound No. Applicable Location Night Night source Daytime Daytime standards time time 1 Shuibao east 55 43 58 44 Living noise Class-2 2 Daming West 60 43 58 45 Living noise Class-2 3 gong south 64 49 65 48 Living noise Class-2 Logistics 4 plot north 51 47 51 47 Living noise Class-2 5 B-type east 51 49 51 47 Living noise Class-2 6 Bonded West 53 44 52 44 Living noise Class-2 7 Area south 55 46 55 45 Living noise Class-2 35

Logistics 8 north 51 45 52 45 Living noise Class-2 plot 9 east 69 64 67 65 Living noise Class- 4a Hetaoshuta 10 north 69 63 68 64 Living noise Class- 4a Logistics Walnut- tree 11 Park plot 57 54 57 54 Living noise Class 4a Tower Village Source: ADB TA consultants

93. According to the monitoring results, noise at the south boundary of Shuibao Daming Gong Logistics plot exceeded the limit because the south boundary is adjacent to the municipal artery road and residential buildings was under construction in the surrounding area. The nighttime noise of the Hetaoshuta Logistics Park plot exceeded the standard too because the plot is close to the North Transit Line and the National Road 210. The noise monitoring results of the B-type Bonded Area Logistics plot met the requirements of the Class- 2 standard of the Acoustic Environmental Quality Standard (GB3096-2008).

2. Ambient Air Quality

94. According to the Environmental Air Quality Status of Shaanxi Province from January 2019 to December 2019 issued by the Ecology and Environment Department of Shaanxi Province, the average annual concentration of PM10, PM2.5, SO2 and NO2 in Baota District where Yan’an New District located in 2019 was 65μg/ m3, 31μg/ m3, 9μg/m 3and 39μg/ m3. The 24- hour average 3 3 concentration of CO was 1.8 mg/ m , and the 8-hour average concentration of O3 was 144μg/ m . All the concentration met the Class II limits in the Environmental Air Quality Standard (GB3095- 2012). The data is presented in Table IV-3.

Table IV-3: Ambient Air Quality of Baota District in 2019 Unit: μg/m 3 3 Project PM10 PM2.5 SO2 NO2 CO (mg/m ) o3 (8 hours) Annual average 65 31 9 39 1.8 144 PRC standard 70 35 70 40 4 160 WHO standard 20 10 NA 40 NA 100 Source: ADB TA consultants

Figure IV-4：Location of the subproject and the ambient air monitoring station

D. Ecological Environment and Sensitive Receptors

1. Ecological environment

95. Common animals in the Baota District of Yan'an includes wild rabbits, wild boars, rodents, grass rabbits, snakes, etc.. The Baota District belongs to transition zone from the forest steppe vegetation belt to the warm temperate zone broadleaved deciduous forest belt. The four towns in the south belong to the broad-leaved deciduous forest belt of the warm temperate zone, while the northern part belongs to the forest grassland vegetation belt. The regional distribution characteristics of the vegetation community in the district are obvious. Vegetation communities in the four towns in the south are mainly natural secondary forests and vegetation communities in the north are shrubland, grasses and artificial forest.

96. The New District of Yan'an City, where the subproject is located, has been planned as urban area. The Shuibao Daming Gong Logistics plot and the B-type Bonded Area Logistics plot are surrounded by planned urban area and natural vegetation has been removed. The Hetaoshuta Logistics Park plot are mainly surrounded by hills, where the trees are mainly planted following the policy of returning forests from farmland and artificial forest for dust and wind control. Therefore, the ecological system at the subproject sites is single and is mainly the urban ecosystem. 37

97. According to the on-site investigation and information collection, domestic EIA, site surveys, and records review, there are no known rare or endangered flora or fauna, species with

international, national or provincial protection status, areas of natural or critical habitat, 12F parks, nature reserves, or areas with special national, regional or local ecological significance within or adjacent to any of the component site. There are also no known drinking water sources, scenic sites, or, based on both sites surveys and a review of relevant literature, sites with Physical Cultural Resources (PCRs).

98. Based on site visit, there were some temporary cables on Shuibao Daming Gong Logistics plot for temporary power supply to the construction activities in this plot. After the construction activities is finished, the temporary cables will be removed and new cables will be laid underground.

Site conditions of B-type Bonded Area Logistics plot

Site conditions of Hetaoshuta Logistics Park plot

Site conditions of Shuibao Daming Gong Logistics plot

Figure IV-5：Subproject Site Conditions

2. Sensitive Receptors 99. According to the on-site investigation, the subproject is located in the urban area and the surroundings areas are residential area. The sensitive receptors near the subproject sites are Hehaota Village, Shangcheng Community, and Jiangsu middle school. Hehaota Village is about 130m away from the Hetaota Logistics Park plot and has around 50 villagers. Shangcheng Community is about 100m away from Shuibao Daminggong Logistics plot and has around 6,000 residents. Jiangsu Middle School is about 100m away from Shuibao Daming Gong Logistics plot and has about 2,400 teachers and students. There is no hospital or nursing home near the subproject site.

Shangcheng community Farmers’ Wholesale Market Figure IV-6：Sensitive Receptors

V. ANTICIPATED IMPACTS AND MITIGATION MEASURES

100. Anticipated positive and negative environmental impacts of the subproject were assessed based on the domestic FSR, domestic EIA registration form; public consultations led by PIE and assisted by ADB technical assistance (TA) consultants; and site visits, surveys and consultations undertaken by ADB TA consultants.

101. Pre-construction, construction phase and operation phase of the subproject were assessed respectively. As the assessment results indicate that the environmental impact is very limited in the pre-construction stage and are mostly associated with ensuring appropriate incorporation of mitigation measures into the project design.

102. Potential negative environmental impacts during construction phase are short-term and localized, and are associated with soil erosion, solid waste, wastewater, construction noise, fugitive dust, disruption of traffic and community services, and risks to workers and community health and safety. These can be effectively mitigated through good construction and health and safety practices.

103. Potential negative impacts during operation phase are associated with air pollution from vehicles, solid waste, wastewater, noise, and health and safety risks to workers and community. These can be effectively mitigated through good operation of the subproject and health and safety practices

104. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption and emissions of atmospheric pollutants such as NOx, PM2.5, and CO2 and improve local air quality.

A. Environmental Impact in the Pre-construction Phase

105. Pre-construction phase measures are implemented during detailed design.

(1) Siting and Land Acquisition of the Project

106. The subproject is located at the planned warehouse land of Yan'an City which is transferred from non-construction land and non-farm land such as hills and valleys.

107. Overall, the subproject will not result in any involuntary land acquisition, resettlement or physical displacement. 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.

(2) Mitigation measures and monitoring during detailed design

108. Mitigation measures to be adopted during detailed design to minimize the impacts are as follows:

(i) Detailed Design. Environmental mitigation and pollution control measures indicated in this IEE, the EMP and the domestic EIA will be incorporated into the detailed design.

(ii) Organization. A subproject PMO will be established by PIE with sufficient staff responsible for environmental and social issues and an external Loan Implementation Environmental Consultant (LIEC) will be hired by the PMO if needed.

(iii) Training. Before the start of the construction, the LIEC will implement institutional strengthening and training programs. The training focuses on ADB and domestic environmental, health and safety laws, regulations and policies, environmental management plan, environmental monitoring, and natural cultural resources and the implementation of the Grievance Redress Mechanism. The training targets are PIE, PMO and contractors.

(iv) Bidding documents and contracts. Environmental mitigation measures indicated in this EIA, the EMP and the domestic EIA will be included in contracts for civil works and equipment installations. All contractors will be required to strictly comply with the EMP.

(v) Environmental monitoring. According to the relevant requirements of PRC and ADB, the environmental monitoring plan shall be formulated. The main monitoring targets of this subproject are noise and dust during construction phase and noise during operation phase.

(3) Grievance Redress Mechanism

109. In accordance with the GRM presented in Chapter VIII of the IEE, a staff member from PIE will be assigned to be overall responsible for the GRM. GRM training will be provided for PMO, IA and GRM access points. GRM access point phone numbers, fax numbers, addresses and emails will be disclosed to the public at the construction sites.

(4) Training and Capacity Building

110. A training plan is developed focusing on the implementation of relevant environmental, health and safety laws, regulations and policies, EMP, environmental monitoring, natural cultural resources and GRM in ADB and PRC will be delivered by the LIEC. The training targets are subproject PMO, PIE, and contractors.

(5) Permitting

111. All necessary permits have been obtained from the relevant authorities.

B. Anticipated Environmental Impacts and Mitigation Measures during the Construction Phase

112. Potential impacts during the construction phase could include air pollution, noise, water pollution and solid waste. Potential air quality impacts could occur due to fugitive dust generated at construction sites from stockpiles of uncovered earth materials, and vehicles hauling materials. The use of powered mechanical equipment during construction activities will generate noise. 41

Construction activities will generate wastewater and construction workers will produce domestic wastewater. Stockpiles of construction waster and domestic is expected to have impact on the surrounding environment. Construction activities will produce construction waste and domestic waste. Workers will face occupational health and safety issues working on construction sites. Identified impacts can be readily addressed through the application of good construction site practices.

1. Impacts on Flora and Fauna

113. 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 urban 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 site developments.

114. 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 subproject. Impacts on flora or fauna are thus expected to be minimal and short-term. Nonetheless, to address potential impacts, the following mitigation measures will be implemented.

(i) Site vegetation plans will be developed at subproject sites using appropriate local native species. (ii) Any existing greening areas impacted by the subproject will be restored post- construction using appropriate native species. (iii) During construction, construction working areas will be demarcated to prevent encroachment and damage to adjacent areas.

2. Erosion and Spoil

115. 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, leveling sites, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. 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. Finally, construction activities may generate surplus spoil. Details of spoils generated from the subproject are given in Table V-1.

Table V-1: Magnitude of Earthworks for the Subproject Unit: 10,000 m3

Earth excavation Earth backfill Spoil Spoil Spoil Disposal Spoil 42 35 7 Yan’an City Landfill Site

116. 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:

(i) At construction site, the potential for storm water runoff will be assessed and

appropriate storm water drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention and settling ponds to control topsoil runoff. (ii) Land excavation and filling will be balanced so as minimize the requirement for fill material transportation. (iii) During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. (iv) Temporary spoil storage sites (and storage containers at lane modification and stations construction sites) will be identified, designed, and operated to minimize impacts. Spoil sites will be restored at the conclusion of storage activities. (v) Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to Yan’an City landfill site. (vi) Spoil and aggregate piles will be covered with landscape material and/or regularly watered. (vii) Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal. (viii) Construction and material handling activities will be limited or halted during periods of rains and high winds. (ix) Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. (x) Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass.

3. Wastewater

117. Inappropriate disposal of domestic wastewater (from construction workers) or construction wastewater (from oil-containing wastewater from machinery repairs) may cause soil or groundwater resources contamination.

118. Construction wastewater will be produced from the maintenance and cleaning of mechanical equipment and vehicles, and lost water and soil during the construction period which is discharged as pollutants. It is unlikely that runoff from site will reach distant water bodies, however, to guard against runoff and infiltration impacting the immediately surrounding areas, the contractors shall ensure that runoff from site will not reach distant water bodies.

119. Inappropriate disposal of construction wastewater (from construction site runoff, drainage of drilling, washing construction equipment and vehicles, pouring and curing concrete, and oil- containing wastewater from machinery repairs) could potentially pollute nearby water bodies and clog local drains. Workers will generate but limited amount of domestic wastewater.

120. 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) Worker camp will be installed with sufficient toilets which will be provided for the workers and domestic wastewater will be treated in septic tank and discharged to the municipal sewerage system on a regular basis. Once the construction starts, if 43

it is found that toilets are not enough or there are female workers, more toilets will be provided. (ii) Construction wastewater will be directed to temporary detention and settling ponds, and then treated water will be partly recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer system and the waste residue in the tank is cleared and transported to designated certificated and engineered landfills by the local sanitation department personnel. If needed, polyacrylamide flocculent will be used to facilitate particle settling. All discharged construction wastewater will to be treated to meet the appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be treated in the WWTP of Yan’an New District. (iii) All necessary measures will be undertaken to prevent construction materials and waste from entering drains and water bodies. (iv) Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation. (v) Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. (vi) All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation. (vii) Storage facilities for fuels, oil, and other hazardous materials are within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits. (viii) The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

3. Air pollution

(i) Analysis of the impact of fugitive dust generated by vehicle transportation

121. The fugitive dust transported by the vehicle accounts for about 30% of the total fugitive dust generated. In the complete dryness condition, fugitive dust quantity is calculated according to the following empirical formula:

Q=0.123V/5(W/6.8)0.85(P/0.5)0.75 In the formula: Q--the fugitive dust of the car, kg/km·per car; V--car speed, km/h; W--car weight, t; P--the amount of dust on the road surface, kg/m 2.

122. Table V-2 shows the amount of fugitive dust generated by a truck with a capacity of 5 tons passing a road of 500m at different road cleaning levels and at different driving speeds.

Table V-2: Vehicle fugitive dust units at different speeds and road cleaning levels Unit: kg/car·km P 0.1 0.2 0.3 0.4 0.5 1.0 Speed kg/m2 kg/m2 kg/m2 kg/m2 kg/m2 kg/m2 5(km/h) 0.0283 0.0476 0.0646 0.0801 0.0947 0.1593 10(km/h) 0.0566 0.0953 0.1291 0.1602 0.1894 0.3186 15(km/h) 0.0850 0.1429 0.1937 0.2403 0.2841 0.4778 20(km/h) 0.1133 0.1905 0.2583 0.3204 0.3788 0.6371 Source: ADB TA consultants

123. The results show that in the same road cleaning levels, the faster the speed is, the more fugitive dust is generated; and at the same speed, the worse the road cleaning level is, the more fugitive dust is generated.

124. If the road is sprayed with water regularly, the dust will be reduced. If the water is sprayed 4~5 times every day, the fugitive dust can be reduced by about 70%. Table V-3 shows the test results of water spraying at the construction site. It presents that 4~5 times of water spray at the construction sites every day can effectively control the construction fugitive dust, and impacts range of the TSP will be less than 50m and the TSP concentration can meet the hourly average concentration limit in Table 1 of the Fugitive Dust Emission Limit of Construction Site (DB61/1078- 2017), no more than 0.7mg/m3. Therefore, limit of vehicle speed, maintenance of road and proper water spray are effective means to reduce vehicle fugitive dust.

Table V-3: Test results of watering for fugitive dust suppression at construction site Distance (m) 5 20 50 100 TSP hourly average No water spray 10.14 2.89 1.15 0.86 concentration mg/m3 Water spray 2.01 1.40 0.67 0.60 Source: ADB TA consultants

(ii) Impact of construction dust from outdoor stockpiles and uncovered construction sites

125. The fugitive dust caused by wind in the outdoor stockpiles and uncovered construction sites accounts for about 70% of the total dust generated. Due to the construction needs, some building materials need to be stacked in outdoor. Some construction sites need to be excavated and stacked manually, where dust is generated in the case of dry climate and windy conditions.

126. The spreading and diffusion of dust particles in the air are related to meteorological conditions such as wind speed, and the sedimentation velocity of the dust particles. Taking sand and dust as an example, the sedimentation velocity increases rapidly with the increasement of particle size. When the particle size is 250μm, the sedimentation velocity is 1.005m/s. Therefore, when the particle size is larger than 250μm, the main impact range of the dust is within the close range of the fugitive dust generation point, in downwind direction and the impacts are mainly from the micro and small particles.

127. The construction fugitive dust size varies greatly based on the construction season, the amount of earthwork and the construction management. The impact range can reach 150~300m. Through the analogy investigation and analysis, under the general meteorological conditions, when the average wind speed is 2.5m/s, the construction fugitive dust can result in: 45

i. The TSP concentration in the construction site is 1.5~2.3 times of the reference point in the upwind direction; ii. The TSP concentration at the point which is 150m way from the construction site in the downwind direction is 0.49mg/m3 equivalent to 1.6 times of the limit; iii. Fence can reduce construction fugitive dust pollution. When the wind speed is 2.5m/s, the impact range can be reduced by about 40%.

128. The construction work activities may destroy the soil surface, expose the land and loosened the soil and provide good conditions for fugitive dust generation. The subproject area belongs to a temperate continental monsoon climate with less rainfall and more dryness and wind in spring and winter seasons. Some study pointed that fugitive dust caused by windy weather leads to high concentration of TSP in the atmospheric environment, among which construction sites contribute most. Therefore, fugitive dust pollution is one of the main environmental problems during the construction phase.

iiiMitigation Measures for Ambient Air Quality Impact

129. The subproject is located in the urban area. In order to reduce the impacts of construction fugitive dust during construction, the contractors should strictly follow the Fugitive Dust Emission Limit of Construction Site Boundary (DB61/1078 -2017), Work Plan for the Blue Sky Defense War of Shaanxi Province in 2019, and other relevant provisions such as the Regulations on the Prevention and Control of Air Pollution in Shaanxi Province. The main prevention measures for construction fugitive dust are as follows:

(i) Water will be sprayed on active construction sites including where fugitive dust is being generated on a daily basis, and more frequently during windy days. (ii) Transport vehicles will be limited to low speeds at the construction sites. (iii) Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. (iv) Construction site roads will be well maintained and watered and swept on an as- needed basis. Construction site road entry points will be equipped with truck drive through wash ponds. (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) Temporary fencing will be erected around dusty activities. (ix) Construction spoil, aggregate other construction materials will be temporary stored using containers, but they may still have the potential to generate dust. Thus, containers will be covered and/or watered if necessary. Powdered materials such as cement and lime will be stored in sealed bags or containers. (x) Muddy or dusty materials on public roads outside the exits of works areas will be cleaned immediately. (xi) On-site asphalting and concrete batching are prohibited.

(xii) Fence will be installed at site boundaries and dust monitoring will be implemented at sensitive receptors to ensure compliance. (xiii) Disturbed site will be revegetated as soon as possible after the completion of works.

4. Noise

130. According to the nature of the subproject, the noise sources of the construction activities at the construction sites are shown in Table V-4.

Table V-4: Strong noise sources of the construction machinery Measuring point No. Name of Device A sound level (dB(A)) distance (m) 1 Drill pile machine 109 2 Concrete pump 85 3 Concrete vibrating machine 84 4 Tire hydraulic excavator 84 5 Grader 90 D=5 6 bulldozer 86 7 Vibratory roller 86 8 Double wheel double vibrating roller 87 9 Three-wheel roller 81 10 Tire roller 76 Source: ADB TA consultants

131. According to the data in Table V-3, the noise from the drilling machine is the highest among the construction machinery, up to 109dB(A) at 5m from the sound source, and the remaining sound level of most construction machinery is between 76~90dB(A). .

132. According to the noise attenuation formula of point source, the noise sound level at the distance noise source r is:

In the formula: - the sound pressure level of the noise source at the predicted point, dB(A);

-- Sound pressure level at the point of reference location , dB(A);

- the distance from the reference position to the center of the sound source, m; - the distance from the center of the sound source to the predicted point, m.

133. According to the formula, the impact ranges of the equivalent sound levels of the construction machinery is shown in Table V-5.

Table V-5: Equivalent sound level of construction machinery’s noise impact range LAeq: dB(A) Standard Standard distance distance Predicted point distance (plant (sensitive Name of No. boundary) point) equipment Day Nigth Day Night 5 10 20 40 80 160 320 640 2506 time time time time (70) (55) (60) (50) Drill pile 1 109 103 97 91 85 79 73 67 55 446 2506 1409 4456 machine Concrete 2 85 79 73 67 61 55 / / / 28 158 89 281 pump Concrete 3 Vibrating 84 78 72 66 60 54 / / / 25 142 79 251 machine Tire type 4 hydraulic 84 78 72 66 50 54 / / / 25 142 79 251 excavator 5 Grader 90 84 78 72 66 60 54 / / 50 283 158 500 6 bulldozer 86 80 74 68 62 56 50 / / 32 177 100 315 Vibratory 7 86 80 74 68 62 56 50 / / 32 177 100 315 roller Double wheel double 8 87 81 75 69 63 57 51 / / 35 199 112 354 vibration roller Three-wheel 9 81 75 69 63 57 51 / / / 18 100 56 177 roller 10 Tire roller 76 70 64 58 52 / / / / 10 56 32 100 Source: ADB TA consultants

134. According to the predicted results in Table V-4, the noise at the point 446 away from the drill pile machine can meet the daytime limits in Environmental Noise Emission Standard at Construction Site Boundary (GB12523-2011) and noise at the point 2,506m away can meet the nighttime noise limit. The noise at the point 56m away from vibrator, noise at the point 56m away from the vibrator in the daytime can meet the daytime limit and noise at the point 317m away can meet the nighttime noise. During earthwork construction phase, the noise at the point 50m away can meet the daytime limit and the noise at the point 283m away can meet the nighttime limit.

135. Because the Jiangsu Middle School is about 110m away from Shuibao Daminggong Logistics plot and Shangcheng Community is about 100m away from Shuibao Daminggong Logistics plot and the Hetaoshuta Logistics Park plot is about 130m away from Hetaoshuta Village, construction activities in the nighttime will have a significant negative impact on them. Therefore, construction in the nighttime is prohibited and temporary fences will be adopted during drilling pile phase to reduce the noise impacts to the three sensitive receptors. Besides construction at lunch break time is prohibited too.

136. To ensure construction activities meet PRC noise standards and to protect workers and adjacent residents, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(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 EEB and other relevant departments. And nearby residents should be notified of such night time activities in advance. (iii) When undertaking construction planning, simultaneous high-noise activities will be avoided, and high noise activities will be scheduled during the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from operating at the same location. (iv) 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. (v) 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. (vi) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (vii) 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. (viii) 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. (ix) Drilling site will be enclosed by fence to reduce noise, if necessary.

5. Solid Waste

137. Solid waste generated in the construction phase will include construction and domestic waste. Construction wastes include various waste packing materials and waste generated during equipment installation and cleaning. An estimated of 0.5 kg/day per worker of domestic waste will be generated from construction workers. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

138. The following solid waste management measure and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) Wastes will be reused or recycled to the extent possible. (ii) Littering by workers will be prohibited. (iii) Excavated soil will be backfilled onsite to the extent possible. Excess spoil that cannot be used on-site will be transported to Yan’an City landfill site. 49

(iv) Domestic waste containers will be used for domestic waste collection at work 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. (v) 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. (vi) There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited. (vii) Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil, waste from drilling and contaminated soils that remain on the site after construction. 6. Hazardous and Polluting Materials

139. Inappropriate transportation, storage, use and spills of petroleum products and hazardous materials such as oily waste can cause soil, surface and groundwater contamination. To prevent this, the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D will be implemented:

(i) A hazardous material handling and disposal protocol that includes spill emergency response will be prepared and implemented by contractors. (ii) Storage facilities for fuels, if applicable and other hazardous materials will be within secured areas on impermeable surfaces provided with dikes with a 110% volume, and at least 300 m from drainage structures and important water bodies. A standalone site within the storage facility will be designated for hazardous wastes. (iii) Signs will be placed at hazardous materials storage sites to provide information on type and name of chemicals and hazardous materials. (iv) Suppliers of hazardous materials must hold proper licenses and follow all relevant protocols and PRC regulations and requirements. (v) A licensed company will be hired to collect, transport, and dispose of hazardous materials in accordance with relevant PRC regulations and requirements. 7. Impacts on Community Health and Safety

140. Component construction activities have the potential to cause community disturbance such as traffic congestion or delays, and public safety risks from heavy vehicles and machinery traffic and risk to kids trying to get onto construction site. Mitigations and construction good practice as set out in EHS Guidelines on C&D and EHS general guidelines will be implemented to address traffic and other community disturbance issues.

(i) Transportation routes and delivery schedules will be planned during detailed design to avoid densely populated and sensitive areas and high traffic times. (ii) Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals.

(iii) Signs will be placed at construction sites in clear view of the public, warning people of potential dangers such as moving. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate.

8. Workers Occupational Health and Safety

141. Construction may cause physical hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, chemical hazards such as toxic fumes and vapors, and others.

142. Contractors will implement adequate precautions to protect the health and safety of their workers:

(i) Each contractor will undertake H&S risk assessment of construction works and implement relevant construction phase EHS plan in line with construction good practice as set out in EHS Guidelines on C&D and Occupational H&S guidelines. (ii) Identify and minimize the causes of potential hazards to workers. Implement appropriate safety measures. (iii) Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and storage, handling and disposal of hazardous waste. Induction will be conducted before construction and no worker is allowed on site without induction. (iv) Ensure that all equipment is maintained in a safe operating condition. (v) Provide appropriate PPE to workers. (vi) Implement COVID-19 prevention measures, including disinfection/cleaning of offices, construction sites and labor camps, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID-19. (vii) Provide procedures for limiting exposure to high noise or heat working environments in compliance with PRC occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and World Bank EHS Guidelines. (viii) Ensure regular safety meetings with staff.

9. Physical Culture Resources

143. Based on site visits, there are no known cultural heritage or archaeological sites at or near the component sites. However, construction activities have the potential to disturb as yet unknown underground cultural relics. To address this issue, a construction phase chance find procedure will be established and activated if any chance finds of PCRs are encountered: (i) construction activities will be immediately suspended if any PCRs are encountered; (ii) destroying, damaging, defacing, or concealing PCRs will be strictly prohibited in accordance with PRC regulations; 51

(iii) local Cultural Heritage Bureau will be promptly informed and consulted; and (iv) construction activities will resume only after thorough investigation and with the permission of the local Cultural Heritage Bureau.

144. In case of any PCR is found, ADB SPS 2009 requirements as well as PRC laws and regulations will be followed.

C. Anticipated Environmental Impacts and Mitigation Measures during Operation Phase

145. The air pollution sources during the operation phase of this subproject are mainly from automobile exhaust and cooking fume.

1. Air pollution

(1) Emission of Vehicle Exhaust

(i) Analysis of impacts on the surrounding area

146. According to the Traffic Impact Report, the predicted number of vehicles at peak hour in the short-term and long-term period is shown in Table V-6. The average driving distance of trucks are about 5 km and daily track flows will be 8 hours of peak flow. The average driving distance of vehicle are about 10 km and daily track flows will be 4 hours of peak flow. The emission factors of various types of vehicles are shown in Table V-7.

Table V-6: Predicted Number of Vehicles of Two Types per Peak Hour in Two Evaluation Years (vehicles / h) Project traffic volume Vehicle Truck

Yan'an Green Urban District Demonstration 30 65 Source: ADB TA consultants

Table V-7: Pollutant Emission Factors of Various Types of Vehicles (vehicles / h) Pollutant emissions (g/km) Type of vehicle NOx PM2.5 National Phase IV Mini and small petrol car Emission Standard for 0.032 0.003 Motor Vehicle Pollutants National Phase IV Heavy diesel truck Emission Standard for 5.554 0.138 Motor Vehicle Pollutants Source: ADB TA consultants

147. The estimated NOx and PM 2.5 emissions of the subproject is shown in Tables V-8. Table V-8: Estimated Pollutant Emissions (t/a) Project Type of Motor vehicle NOx PM2.5 Yan'an Green Urban District Car 0.007 0.001 Demonstration Truck 10.541 0.262 Total 10.548 0.263 Source: ADB TA consultants

148. According to the calculation, the emissions of NOx and PM2.5 in Yan'an Green Urban District Demonstration is estimated to be 10.548t and 0.263t, Emission from vehicle exhaust of the subproject will have an adverse impact on its surrounding environment.

(ii) CO2 emission of the subproject

149. CO2 emission of the subproject is calculated based on the fuel consumption and CO2 emission factors of various fuels. The CO2 emission factors of various fuels is presented in Table V-9.

Table V-9: CO2 emission factors of various fuels (kg/TJ) Type of fuels Pollutant emission factors Gasoline 69,300

Diesel 73,000 Source: IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories

150. The fuel consumption of different vehicles is presented in Table V-10.

Table V-10: fuel consumption of different vehicles (l) Type of vehicles Fuel consumption per 100 km Small vehicles 9.69 Truck 32.34 Source: ADB TA consultants

151. The CO2 emission of the subproject is presented in Table V-11.

Table V-11: Estimated CO2 Emissions (t/a) Project Type of Motor vehicle CO2 Car 80 Yan'an Green Urban District Demonstration Truck 670 Total 750

(iii) No-Project alternative analysis

152. According to the survey, if the subproject is not implemented, average driving distance for the transportation vehicles to transport goods to various scattered points in Yan'an is 35km and the average driving distance of employees' cars is about 15km.

Table V-12: Pollutant Emissions (t/a) Emissions without this Emissions with this Type of Motor Emissions reduction Project subproject subproject vehicle NOx PM2.5 NOx PM2.5 NOx PM2.5

Yan'an Green Car 0.021 0.002 0.007 0.001 0.014 0.001 Urban District Demonstration Truck 36.895 0.917 10.541 0.262 26.354 0.655 Total 36.916 0.919 10.548 0.263 26.368 0.656 Note:"-"means increased emissions 53

153. Based on Table V-12, that the subproject will reduce the emissions of NOx and PM2.5 by 26.368t/a and 0.656t/a. Therefore, the subproject will reduce the air pollutants emission and improve local air quality.

(2) Emissions from non-road mobile sources

154. The non-road mobile source of this subproject is mainly the exhaust from diesel engine forklifts in the park. in the subproject will have 45 forklifts with net engine power no less than 75kW and no more than 130 kW. The pollutants from the forklifts is from Phase IV mission limit in accordance with Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non-road Mobile Machinery (GB 20891-2014).

Table V-13: Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Non-road Mobile Machinery Rated net power (Pmax) NOx PM Phase (kW) (g/kWh) (g/kWh) Pmax>560 3.5 0.10 130≤Pmax≤560 2.0 0.025

75≤Pmax≤130 3.3 0.025 IV 56≤Pmax≤75 3.3 0.025

37≤Pmax≤56 - 0.025 Pmax<37 - 0.60

155. Based on Table V-13, the exhaust pollutant emission limit NOx is 3.3g/kWh, and the PM is 0.025 g/kWh.

156. The daily working hours of the forklifts of this subproject is 8h, the pollutants emission from forklifts are shown in Table V-14.

Table V-14: Emissions of Pollutants from Non-road Mobile Sources Number of forklifts Project Working hours (h) NOx(t/a) PM (t/a) (sets) Yan'an Green Urban 45 8 0.434 0.003 District Demonstration

(3) Vehicle Exhaust of Underground Parking Lot

157. There are 795 parking spaces for vehicles of the subproject, including 47 parking spaces in the Hetaoshuta Logistics Park plot, 531 in the Shuibao Daming Gong Logistics plot, and 207 in the B-type Bonded Area Logistics plot. The ground parking spaces are scattered and is mostly used for temporary parking with short duration time. Therefore, the vehicle exhaust from the ground parking spaces is small, and is easy to dispersion at outdoor. The IEE focuses on the exhaust emissions of underground parking lots.

158. The main pollutants of automobile exhaust are CO, HC and NOx. The emission factors of pollutants vary based on the type of vehicle, vehicle driving condition and number of vehicles. In different vehicle driving conditions, the main pollutant concentrations in automobile exhaust are presented in Table V-15.

Table V-15: Pollutants concentration in the vehicle exhaust Pollutant Unit Idle speed Normal driving CO % 4.07 2 HC ppm 1200 400 NOx ppm 600 1000

159. Based on Table V-15, under the idling condition, the concentration of CO and HC in the vehicle exhaust is relatively high; under normal driving conditions, the concentration of CO and HC in the vehicle exhaust gas decreases, while the concentration of NOx concentration increases. Concentrations of CO, HC and NOx pollutants under idle speed is utilized in this IEE: CO: 4.07%, HC: 1200 ppm (0.12%), NOx: 600 ppm (0.06%).

(i) Discharge conditions of source intensity

160. The impact of car exhaust in the underground garage to the surrounding environment is directly related to its operating conditions and generally divided into three types. The first type is the full load condition with relatively big numbers of cars entering and exiting the garbage. The second type is peak hour condition. The third type is the daily average car flow condition. This IEE will focus on the most unfavorable situation of the subproject, therefore impacts under full load condition is calculated in the IEE.

(ii) Calculation of pollutant emission intensity

161. The exhaust emissions are calculated as follows:

D=QTk+1A/1.29

In the formula:

D——exhaust gas emission, m3/h.

Q——car flow, v/h. The traffic flow under full load conditions, the number of vehicles in the underground garage reaching the total numbers of parking spaces, and the one hour car flow at the entrance and exit is calculated as one tenth of the parking spaces.

T——the running time of the vehicle in the garage under idle speed, min. The running condition is under idle speed, and the running speed is determined as 5km/h. Considering the basic conditions of the garage, car backing, parking, starting and other factors, the average running time of the vehicle in the underground garage is 1.5 min.

k——the air-fuel ratio. When the vehicle is under idle condition, the air-fuel ratio is 12:1.

A——fuel consumption, kg/min. The average fuel consumption of vehicles entering and exiting the garage (idle speed <5km/h) is 0.2L/min (the density of unleaded No. 92 gasoline is 0.713kg/L)

162. The pollutants discharged is calculated as follows:

G=DCF

In the formula:

G——the pollutant discharge, kg / h.

C——emission concentration of pollutants, volume ratio, ppm. CO is 4.07%, HC is 1200ppm (0.12%), NOx is 600ppm (0.06%)

f——volume and mass conversion factor. CO is 1.25, HC is 3.21 and NO is 2.05

(iii) Calculation results of pollutant source intensity of car exhaust

163. According to the above parameters and formulas, pollutant source intensity of car exhaust in the underground garages is presented in Table V-16.

Table V-16: Pollutant source intensity of car exhaust in the underground garages One-way Pollutant Parking Location traffic Project space CO HC NOx (vehicle / h) Maximum Hetaoshuta Logistics Park 47 4.7 discharge rate 0.63 0.05 0.02 plot (kg/h) Maximum Shuibao Daming Gong 531 53.1 discharge rate 5.82 0.44 0.14 Logistics plot (kg/h) Maximum B-type Bonded Area Logistics 217 21.7 discharge rate 2.27 0.17 0.06 plot (kg/h)

(iv) Pollutant emission concentration in the underground garage

164. Emission volume of the pollutants per unit time is calculated based on the ventilation time, and the pollutants emission concentrations is calculated based on the pollutants emission rate. The formula is presented below:

C=G/Q×106 Q=NV Among them: C——concentration of pollutants, mg / m 3. G——pollutant emission rate, kg / h. Q——Exhaust velocity of the fan, m3/h. V——garage volume, m3. (Garage area in the Hetaoshuta Logistics Park plot is 13,618.69 m 2, the Shuibao Daming Gong Logistics plot is 20,674.08m2 and the B-type Bonded Area Logistics plot is 6,038.00 m 2. The height is 3.3m. N——Ventilation times, times / hour. (6 times per hour).

165. The concentration of pollutants emitted from the underground garage is shown in the Table V-17.

Table V-17: Pollutant Emission Concentration in Underground Garage Units: mg/m 3 Project CO HC NOx Hetaoshuta Logistics Park plot 2.34 0.18 0.07 Shuibao Daming Gong Logistics plot 14.22 1.07 0.34 B-type Bonded Area Logistics plot 18.98 1.42 0.50 Note: The underground garage adopts forced ventilation, and the mechanical exhaust volume is calculated according to the ventilation time of 6 times/hour. Landscape plants will be planted around the underground garage exhaust outlet to improve the ambient air quality.

(2) Cooking fume

166. The subproject will have about 70 staff during operation. The average consumption of edible oil is calculated at 0.02kg/ p·d, and the oil consumption of the subproject is 1.4kg/d. The average volatile oil is 2% of the total oil consumption. The subproject will utilize oil fume purifier with an exhaust air volume of 2,000 m 3/h and a removal efficiency at 75%. Daily average working time under full capacity is 3 hours.

Table V-18: Emission of cooking fume Volume of Concentration Removal Emission Plot Size (person) airborne grease (mg/m 3) efficiency (%) concentration and fume (kg/d) Yan'an Green Urban District 70 1.4 4.67 75 1.17 Demonstration Subproject

167. The mitigation measures for air pollution are presented below.

(i) Keep good maintenance of vehicles and road. (ii) The underground garage adopts forced ventilation, and the mechanical exhaust volume is calculated according to the ventilation time of 6 times/hour. (iii) Landscape plants will be planted around the underground garage exhaust outlet to improve the ambient air quality. (iv) Cooking fume will be treated by oil fume purifier with an exhaust air volume of 2,000 m 3/h and a removal efficiency at 75%, then discharged by flue pipe.

2. Waste water

(1) Domestic wastewater

168. The wastewater during the operation phase is mainly the domestic wastewater. During operation, the subproject will have about 70 staff, the daily water consumption is 8.40 m3 and the daily domestic wastewater production is 6.72 m3. The domestic waste water quality and emission are shown in the Table V-19.

Table V-19: Domestic wastewater quality and emission Annual emissions Concentration Plot Pollutant Emission (t) (m3) (mg/L) COD 300 0.61 Yan'an Green Urban District Ammonia nitrogen 25 0.05 Demonstration 2,016 Subproject Animal and vegetable oil 20 0.04

169. The domestic wastewater generated by the Shuibao Daming Gong Logistics plot and B- type Bonded Area Logistics plot is pretreated by the septic tank and discharged to the municipal sewage pipe network. The domestic wastewater of the Hetaoshuta Logistics Park plot is pretreated by the septic tank and transported by sewage truck to the wastewater treatment plant. The wastewater generated by this subproject will be finally discharged into the wastewater treatment plant (WWTP) of Yan'an New District for treatment. The wastewater discharges by the subproject will be required to meet Class III maximum acceptable concentrations (MACs) in Integrated Standards for Wastewater Discharge (GB8987-1996), and the WWTP discharges are required to meet Class 1A of Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants (GB 18918-2002).

3. Solid Waste

170. The solid waste generated during operation is mainly domestic waste and waste package materials.

(1) Domestic waste

171. During operation, the subproject will have about 70 staff and the daily domestic waste production is 70 kg. The domestic waste generated is required to be classified, then collected, transferred and disposed by local sanitation department. The domestic waste shall be collected on a daily basis to prevent secondary pollution.

(2) Waste packaging materials

172. Annual waste packaging materials generated by this subproject is about 1.0t and will be sold to manufactures for recycling.

(3) Kitchen waste

173. Kitchen waste will be collected, transferred and disposed by third party certificated company.

4. Noise

174. Noise of this subproject during operation mainly comes from equipment noise such as forklift, truck, clamp machine. Following measures will be taken to mitigate noise impacts.

(i) Low-noise equipment will be used as far as possible, and noise reduction measures such as noise elimination, shock absorption, insulated enclosures and sound dampening materials on exterior walls will be implemented.

(ii) All equipment will be properly maintained in order to minimize noise. (iii) Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S. (iv) Layout of subproject sites will be reasonable planned to reduce noise. (v) Noise monitoring will be conducted at the site boundaries and sensitive receptors for compliance.

5. Community and Occupational Health and Safety

175. The subproject operation poses potential risks to workers and community. To mitigate potential health and safety risks to workers, the following measures and good practice measures per the EHS Guidelines on occupational H&S will be taken:

(i) Operation phase EHS plan and traffic management plan will be developed and implemented and workers will be trained regularly on their implementation. (ii) The nearby communities will be informed of the potential risks and the emergency response plan. (iii) PPE including goggles, gloves, safety shoes will be provided to workers. Noise protection equipment will be provided to workers in high-noise area. (iv) Implement COVID-19 prevention measures, including disinfection/cleaning of offices, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff is infected with COVID-19 (v) Provide training to workers on occupational health and safety, and emergency response such as fire. (vi) Transporting vehicles will slow down to 30 km/h and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. (vii) Regular maintenance of vehicles to minimize potential accidents caused by equipment malfunction. (viii) Subproject sites will be fence with restricted public access.

6. Emergency Response Plan

176. An emergency risk and response plan will be established in accordance with the “National Environmental Emergency Plan” (24 January 2006) and other relevant PRC laws, regulations and standards and will include measures in the World Bank EHS guidelines with respect to occupational and community health and safety. The nearby communities will be informed of the potential risks and the emergency response plan. Major elements of the emergency response plan are presented in Table 2 of Appendix I. 59

D. Anticipated Positive Operation Phase Impacts

177. Potential positive operation phase impacts are significant and long-term and are associated with emissions reductions through transportation efficiency improvement. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption by 1,295.4 tons and emissions of NOx, PM and CO2 by 26.368 tons , 0.656 tons and 4,020 tons, respectively per year and improve local air quality.

VI. ANALYSIS OF ALTERNATIVES

178. An analysis of component 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. Subproject Rational

179. According to the Medium & Long-term Plan for the Development of Logistics Industry in Shanxi Province (2015-2020), Yan'an City will be positioned as a "second-tier node city"; and according to the National Logistics Hub Layout & Construction Plan, Yan’an City is planned as a "City as Carrier of Landport-type National Logistics Hub".

180. Yan’an has a well-developed railway, highway and aviation transportation network, and has become an important hub. At present, Yan'an has air routes to Xi'an, Beijing, Guangzhou, Chongqing, Shanghai, etc. After the new airport is operated, it will have more domestic and international routes. Now the Inner Mongolia-Central China railway freight transportation channel has been completed and operated, the railway freight transportation between Xi'an and Yan'an is operating now. And the transfer time will be further shortened to around one hour after the Xi'an- Yan'an high-speed railway is operated. The Baotou-Maoming Expressway (G65), Qingdao- Lanzhou Expressway (G22), Qingdao-Yinchuan Expressway (G20) and the G210 national highway pass through Yan’an City and of Yan’an City has a good highway transportation condition.

181. Yan'an City is an important transportation and logistics node connecting the northwest region and the southwest region to the north China region. Meanwhile, warehouse and express delivery transfer sites in Yan'an old urban area featured scarcity, scattered distribution and small size. Most of those sites are located in the outskirts in Yan'an old urban area with an uneven distribution, limited coverage range and long distance away from the urban area, which can’t meet the development needs of Yan'an City. The capacity of the existing logistics center located in the Yan’an old urban area is not sufficient to meet the demand of the Yan’an old urban area.

182. Implementation of the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption by 1,295.4 t and emissions of NOx, PM and CO2 by 26.368 tons, 0.656 tons and 4,020 tons, respectively per year and improve local air quality. For these reasons the “no project” alternative is considered unacceptable.

B. Site location

183. For subproject site selection, the site selection meets the Yan’an Municipal Master Plan and Land Use Plan. There are no environmental sensitive areas near the subproject site. There is no other environmental constraint that might restrict the development of the subproject such as wetlands, historic sites, and access to sewers, critical habits or potential mineral developments.

184. Selecting a site for the subproject is a complicated comprehensive process, which involves national economic policies, local urban master planning, development planning, land use natures, communication and transportation, meteorological conditions, water source, water source protection, geologic conditions, telecommunication, electricity, water supply and drainage, project waste discharge natures, environmental impacts and other political, economic and technical aspects.

185. According to the urban master plan, regional topographic and geologic data, several candidate sites were selected for this subproject. After field reconnaissance, comparative analysis was conducted regarding topographic, terrain, water source, electricity, municipal, meteorological, communication and transportation, land use conditions, plans for neighboring areas, estimated investments for resettlement and population distribution, etc., the three plots were selected for the proposed subproject.

C. Overall Alternative Analysis

186. Based on the analysis of alternatives, the subproject has selected the most appropriate location.

VII. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION

A. PRC and ADB Requirements for Disclosure and Public Consultation

1. PRC Requirements

187. Relevant provisions in the PRC Environmental Impact Assessment Law and the Regulations on the Administration of Construction Project Environmental Protection require that an EIA study for a construction project shall solicit opinions from affected residents, as well as other organizations and concerned stakeholders. For a project that prepares a full EIA report is required to submit a public participation statement and make it open to the public, and for a project that prepares only a simplified tabular EIA or EIA registration form has no need for public consultation.

188. As this project is required to prepare EIA registration form, it has no need for public participation.

2. ADB requirements

189. ADB's SPS 2009 has specific requirements for information disclosure and public participation. In accordance with ADB's public communication policy, ADB is committed to working with borrowers in appropriate locations, appropriate ways and understandable language for the affected people, timely disseminating information (both positive and negative) about social and 61 environmental protection to affected people and other stakeholders (including the public), so that they can provide valuable suggestions for project design and implementation. ADB publishes the following safeguards documents on its official website:

(1) For environmental Category- A projects, a draft full EIA report that shall be disclosed at least 120 days prior to ADB Board consideration;

(2) A full EIA/IEE report that should be announced before project appraisal;

(3) The final or updated EIA/IEE; and

(4) Environmental monitoring report submitted by the borrower during project implementation.

190. The SPS 2009 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.

191. The subproject is classified as environment Category B, thus, at least one round of consultation is required.

B. Project Information Disclosure

1. Domestic information disclosure

192. This subproject is required to prepare EIA registration form, which has been completed and disclosed to the public. The domestic EIA registration form can be found at the construction project’s environmental impact registration and filing system (http://113.140.66.230:4680/REG/) with a filing number: 201961060200000709. The domestic EIA registration form information disclosure is presented in Figure VII-1.

Figure VII-1: Domestic EIA registration form public information disclosure

193. No public feedback was received during public information disclosure.

C. Project Information Disclosure

1. Public Consultation

194. On November 7, 2019, the public consultation meeting of the project was held in the new district of Yan'an. A public consultation meeting information notice was posted in the nearby villages and residents area for one week prior to the meeting. The notice is presented in Figure VII-2. During the meeting, the construction unit introduced relevant information such as the project construction content and construction site, and the environmental assessment unit introduced the possible existence of environmental impacts from the project during the construction phase and mitigation measures to be taken. During the meeting, most participants believed that the project construction could improve their quality of life and provide more employment opportunities for nearby residents. 63

Figure VII-2: Public consultation meeting information notice

195. During the consultation, 26 questionnaires were distributed and 26 completed questionnaires were received, the main contents of which were about potential environmental impacts and mitigation measures. Table VII-1 for Photographs of consultation meetings and surveys are shown in Figure VII- 1.

196. According to statistics, 60.0% of the respondents work while 70.0% of the respondents live within 5km of the component’s radius. 95.0% of the respondents indicated that they had already learned about relevant information of the subproject before the consultation. 35% of the participants were female. The top three environment issues respondents identified in their neighborhoods include ambient air (35.0%), noise (46.0%) and solid waste (23.0%). Solid waste (12%), noise (31%) and other (27%) are identified as the top two issues during the construction

64 phase. However, most participants also indicated that the impacts on the environment can be appropriately mitigated and accepted if relevant measures could be taken during the construction phase and operation phase. 96% of the respondents indicated that they accepted the environmental impacts during construction phase, 81% of the respondents indicated that they knew the environmental impacts during operation. 92% of the respondents indicated that they accepted the environmental impacts on ambient air during operation. 92% of the respondents accepted the environmental impacts on acoustic environment during operation. 92% of the respondents accepted the solid waste impacts of the subproject during operation, and 96% of the respondents accepted the impacts on ecology environment.

197. The overall support for the subproject is very strong,100% of the respondents support construction of the subproject. 96.0% of the respondents believe that the subproject will promote local economic development, and 96% believe that the subproject will improve the quality of life.

198. Statistics of public participation survey are shown in the Table VII-2 and Table VII -3.

Figure VII -1: Photo of public participation meetings

Table VII -1: Public Participation Survey Form of Yan'an New Area Logistics Park Name Sex Age Education Occupation Nationality Contact

information Question Choices Yes Comments Ambient air Noise 1. In your opinion, what are the major Surface water environment pollution issues in your Soil areas? Solid Waste Other problems < 1km 2. Distance between your working 1-3km place and project site 3 - 5km >5km 3. The distance between your place < 1km of residence and the project site 1-3km 65

3 - 5km >5km 4. Do you know this project before Yes the public consultation? No 5. Do you understand the Yes environmental impact of the project No before this public consultation? Not clear 6.Are all the potential positive and Clearly understand adverse impacts of the proposed Do not understand project components clear to you? Not clear Noise 7. Do you understand what are the Dust main impacts in the construction of Solid Waste the proposed project? Other No effect 8. If there is no mitigation measure, Accept will you accept the impact of the Do not accept construction phase? Have no idea 9. After understanding the Accept mitigation measures during the Do not accept construction phase, do you accept the expected impact of the Have no idea construction phase? 10. Do you understand the possible Clearly understand adverse effects of the project on Do not understand the environment during the Not clear operation? 11. Do you understand the Clearly understand mitigation measures recommended Do not understand during the operation of the project? Not clear Accept 12. Do you accept the impact of Do not accept this project on ambient air quality? Have no idea 13. Do you accept the impact of Accept this project on the quality of surface Do not accept water? Have no idea 14. Do you accept the impact of Accept this project on the quality of the Do not accept acoustic environment? Have no idea Accept 15. Do you accept the solid waste Do not accept pollution generated by this project? Have no idea 16. Do you accept the impact of Accept this project on the ecological Do not accept environment? Have no idea Ambient air Noise 17. What are the main concerns of Surface water this project? Soil Solid Waste Other problems Yes 18. Do you think that the No construction of this project can I don’t know

promote local economic development? 19. Do you think that the Yes construction of this project can No improve your quality of life? I don’t know Support 20. Do you support this project? Barely support Have no idea 21. Recommendations or requirements for project environmental protection.

Table VII -2: Summary data on questionnaire respondents Parameter Indicator No. % Male 17 65.0 Sex Female 9 35.0 Han People 26 100.0 Nationality Other 0 0.0 Below 40 18 69.0 Age 40~50 7 27.0 60 and above 1 4.0 Farmer 11 42.0 Employee Occupation 12 46.0 Civil servant 3 12.0 Freelancer 0 0.0 Elementary school or below 3 11.0 High school, including technical 31.0 Educational level secondary school 8 Bachelor degree or above, including 58.0 junior college 15

Table VII-3: Detailed information of respondents Education No. Name Sex Age Nationality Career level 1 Han Jin Female 38 Han Middle school Farmer Primary 2 Yuan Hui Female 50 Han Farmer school 3 Xue Tao Male 30 Han High school Worker Primary 4 Bai Zhihong Female 42 Han Farmer school 5 Wang Peng Male 34 Han Middle school Farmer 6 Xu Zheng Male 34 Han Junior college Freelancer Primary 7 Liu Wei Male 50 Han Farmer school 8 Zhao Jiujiang Male 28 Han Junior college Freelancer 9 Cao Yongxu Male 28 Han Junior college Worker 10 Gao Jiangjiang Male 30 Han High school Worker 11 Fan Qing Male 28 Han High school Worker 12 Zhang Zhiming Male 24 Han Bachelor Engineer 13 Wang Peng Male 35 Han High school Worker 67

14 Li Yanjun Male 48 Han Middle school Farmer Technical 15 Ma Yanhu Male 40 Han secondary Worker school 16 Gao Yanjun Male 43 Han High school Worker 17 Ma Liansheng Male 52 Han Middle school Farmer 18 Zhao Baoyuan Male 44 Han Middle school Farmer 19 Li Jie Male 36 Han Middle school Worker 20 Zhang Nifang Female 28 Han Bachelor Civil servant 21 Yang Mei Female 34 Han Junior college Worker 22 Li Huimin Female 26 Han Junior college Worker 23 Xu Na Female 30 Han Bachelor Accountant 24 Gao Xiaoxia Female 36 Han Bachelor Civil servant 25 Yuan Mei Female 34 Han Junior college Worker 26 Su Long Male 35 Han Bachelor Civil servant Note: Information supplied with the participants consent.

Table VII-4: Public consultation questionnaire results of Yan'an New Area Logistics Park Question Choices Number of people Percentage(%) Ambient air 9 35.0% Noise 12 46.0% 1. What do you think are the main Surface water 1 4.0% environmental pollution problems in Soil your area? 0 0.0% Solid Waste 6 23.0% Other problems 1 4.0% < 1km 0 0.0% 2. The distance between your work 1-3km 8 31.0% location and the project location 3 - 5km 5 19.0% >5km 13 50.0% < 1km 1 4.0% 3. The distance between your place 1-3km 2 8.0% of residence and the project location 3 - 5km 12 46.0% >5km 11 42.0% 4. Do you know this project before Yes 25 96.0% the public consultation? No 1 4.0% 5. Do you understand the Yes 24 92.0% environmental impact of the project No 2 8.0% before conducting public consultation? Not clear 0 0.0% 6. Do you understand the possible Clearly understand 17 65.0% adverse effects of the proposed Do not understand 8 31.0% project during the construction process? Not clear 1 4.0% Noise 8 31.0% Dust 0 0.0% 7. What are the main impacts in the Solid Waste 3 12.0% project construction process? Other 7 27.0% No effect 11 42.0%

8. If there is no mitigation measure, Accept 25 96.0% will you accept the impact of the Do not accept 0 0.0% construction phase? Have no idea 1 4.0% 9. After understanding the mitigation Accept 25 96.0% measures during the construction Do not accept 0 0.0% phase, do you accept the expected impact of the construction phase? Have no idea 1 4.0% 10. Do you understand the possible Clearly understand 21 81.0% adverse effects of the project on the Do not understand 4 15.0% environment during the operation? Not clear 1 4.0% 11. Do you understand the mitigation Clearly understand 20 77.0% measures recommended during the Do not understand 6 23.0% operation of the project? Not clear 0 0.0% Accept 24 92.0% 12. Do you accept the impact of this Do not accept 0 0.0% project on ambient air quality? Have no idea 2 8.0% 13. Do you accept the impact of this Accept 23 88.0% project on the quality of surface Do not accept 0 0.0% water? Have no idea 3 12.0% 14. Do you accept the impact of this Accept 24 92.0% project on the quality of the acoustic Do not accept 0 0.0% environment? Have no idea 2 8.0% Accept 24 92.0% 15. Do you accept the solid waste Do not accept 1 4.0% pollution generated by this project? Have no idea 1 4.0% 16. Do you accept the impact of this Accept 25 96.0% project on the ecological Do not accept 0 0.0% environment? Have no idea 1 4.0% Ambient air 6 23.0% Noise 5 19.0% 17. What are the main concerns of Surface water 0 0.0% this project? Soil 3 12.0% Solid Waste 3 12.0% Other problems 10 38.0% 18. Do you think that the Yes 25 96.0% construction of this project can No 0 0.0% promote local economic development? I don’t know 1 4.0% 19. Do you think that the Yes 25 96.0% construction of this project can No 0 0.0% improve your quality of life? I don’t know 1 4.0% Support 26 100.0% 20. Do you support this project? Barely support 0 0.0% Have no idea 0 0.0% 21. Recommendations or requirements for project environmental protection.

D. Future Public Participation Activities

199. This IEE will be disclosed on the ADB website. Any update in the IEE resulting from a change in project scope will be disclosed too. During the construction and operation phases, the GRM will be implemented (see Chapter 8), and public participation activities will be carried out on a regular basis to ensure timely understanding and handling of public concerns. 69

VIII. GRIEVANCE REDRESS MECHANISM

A. Introduction

200. A project grievance can be defined as an actual or perceived project related problem that gives ground for complaint by an affected person (AP). As a general policy, a GRM will be established by the PIE and it will work proactively toward preventing grievances through the implementation of mitigation measures and community liaison activities that anticipate and address potential issues before they become grievances. In addition, as the project has strong public support and will not involve any involuntary land or property acquisition or resettlement, significant grievances are unlikely to happen. Nonetheless, during construction and operation it is possible that unanticipated impacts may occur if the mitigation measures are not properly implemented, or unforeseen issues arise. In order to address complaints if or when they arise, a component-level GRM has been developed in accordance with ADB requirements. A GRM is a systematic process for receiving, recording, evaluating and addressing AP’s project-related grievances transparently and in a reasonable timeframe.

B. ADB’s GRM Requirements

201. ADB’s SPS 2009 requires a project to establish a GRM to receive and facilitate resolution of AP’s concerns and complaints about the project’s environmental performance during construction as well as operation phases of the project. The GRM should be scaled to the risks and adverse impacts of the project; should address affected people’s concerns and complaints promptly, using an understandable and transparent process; should be readily accessible to the community at no cost and without retribution; and, should not impede access to the PRC’s judicial or administrative remedies.

C. Current GRM Practices in the PRC

202. At the national level, a framework to address grievance has been established. State Council Decree No. 431 Regulation on Letters and Visits (January 2005) establishes a complaint mechanism at all levels of government, and safeguards the complainants from any retaliation. The former MEP Decree No. 34 Environmental Letters and Visits System provides specific guidelines to establish a system and address environmental complaints. When APs are affected by project activities, they may complain to the contractors and the project company by themselves or through their community organizations, or complain directly to local Ecology and Environment Bureau (EEB). If the issue is not resolved they may take legal action, though that is typically considered as a last option.

D. Project Level GRM

203. In order to effectively solve the problem and ensure that the environmental impacts caused by the subproject during the construction phase and operation phase are resolved, the subproject has established a transparent and effective GRM. The GRM will run through the entire construction phase and operation phase until the project is closed, ensuring the affected personnel can handle related issues through the procedure. The affected people will not be charged for the compliant and any cost from the compliant will be paid by PIE.

204. The PIE is a key point in the operation of the project GRM, which can ensure the effective operation of the subproject’s GRM. If surrounding residents, government departments and other

70 stakeholders need to know the relevant information of the subproject, the PMO could also be contacted.

205. The GRM will be implemented through four escalating steps:

Stage 1: If a concern arises, the AP can try to resolve the issue of concern either directly with the contractor or PIE or via GRM access points (community leaders, neighborhood organizations, PMO, local EEB) during the construction phase, and/or the PIE directly or via GRM access points during the operation phase. If the concern is resolved successfully no further follow-up action is required. Nonetheless, the contractor (during construction) and/or the operator (during operation) shall record any complaint and actions taken to resolve the issues and report the results to the PMO and the AP. If no solution is found within 10 working days or if the AP is not satisfied with the suggested solution under Step 1, proceed to Step 2. The AP may also skip Step 1 and directly file the complaint with the PMO.

Stage 2: The AP will submit the grievance to the PMO. PMO will propose solutions by investigating the complaint, informing the PIE, and consulting the local EEB and other relevant stakeholders. The solution must be reported to the affected people within 10 working days, after that, PIE must implement the solution within 10 working days. If no solution is formed or the AP is not satisfied with the solution, proceed to Stage 3.

Stage 3: PMO will organize a multi-stakeholder meeting. PIE and the local EEB will be engaged as stakeholders. The multi-stakeholder meeting will aim to find a solution acceptable to all and identify responsibilities and an action plan. The PIE will ensure that the implementation of agreed-upon redress solution begins within 10 working days of the completion of the multi-stakeholder meeting. If no solution acceptable to all is found, proceed to Step 4

Stage 4: If the complainant is still dissatisfied with the solution from Stage 3, PMO will organize a hearing process and shall determine a solution acceptable to all. Based on the hearing results, an action plan shall be developed and the PIE will ensure that the implementation of the agreed-upon redress solution begins within 10 working days of the completion of the hearing.

206. If the complainants are not satisfied with the suggested solution under Step 4, the APs can access ADB’s Office of the Special Project Facilitator (OSPF) (https://www.adb.org/site/accountability-mechanism/contacts) or Compliance Review Panel (CRP) (http://compliance.adb.org/dir0035p.nsf/alldocs/BDAO-7XG526?OpenDocument), or seek local legal address.

207. PMO shall inform ADB on the complaints that have been received and the solutions, which shall be included in the semi-annual environmental monitoring reports.

Step 1：Resolution at local level AP tries to resolve issue directly with the contractor or PIE within 10 working days. Compliant redressed

Complaint Not Redressed or AP wishes to submit directly to PMO

Step 2: PMO Complaint Resolution PMO has 10 working days to investigate and develop a solution and PIE will initiate implementation in 10 working days. Compliant redressed

Complaint Not Redressed

Step 3: Multi-Stakeholder Meeting PMO organizes stakeholder meeting within 10 days and solution will be developed in the meeting. PMO/PIE will initiate solution Compliant redressed implementation in 10 working days.

Complaint Not Redressed

Step 4: Grievance Hearing PMO will organize a grievance hearing and determine a solution and an action plan. PMO/PIE will initiate solution implementation Compliant redressed in 10 working days.

If Complaint Is Still Not Addressed, AP May Seek Legal Redress Through ADB’s Office of Special Facilitator, Compliance Review Panel, Local Legal System

Figure VIII-1: Complaint flow chart

IX. CONCLUSIONS

208. This IEE report has been prepared for the proposed Yan’an Green Urban District Demonstration Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

209. This subproject will build one logistic park in Yan’an New District to provide warehousing and logistics service to the major commercial entities in Yan'an New District and will further improve the urban functions in Yan'an New District by greatly solving the existing storage problem of major commercial entities. The subproject will deliver significant positive social impacts. The proposed subproject will cover three land plots, which are Shuibao Daming Gong Logistics plot (plot 1), Hetaoshuta Logistics Park plot (plot 2) and B-type Bonded Area Logistics plot (plot 3).

210. The subproject will bring significant positive environmental benefits. Once operational, the subproject will: (i) improve the transportation efficiency and reduce traffic congestion in the urban area; (ii) promote regional industry cluster and increase employment rates of local residents; (iii) significantly reduce fossil fuel consumption by 1,295.4 t and emissions of NOx, PM and CO2 by 26.368 tons, 0.656 tons and 4,020 tons, respectively per year and improve local air quality.

211. The subproject has: (i) selected appropriate sites for the subproject; (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.

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

Appendix I: Environmental Management Plan

A. Introduction

1. This EMP is prepared for the proposed Yan’an Green Urban District Demonstration Subproject of Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project supports the development of the logistics sector in Shaanxi Province. The proposed project will improve the efficiency of logistics operations, which will enhance investment and employment opportunities and reduce the price of consumer goods, contributing to poverty reduction objectives and narrowing disparities between urban and rural development.

3. The objectives of the EMP are to ensure (i) implementation of the identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; (ii) implementation of monitoring and reporting; and (iii) the subproject compliance with the PRC’s relevant environmental laws, standards and regulations and ADB’s SPS 2009. Organizational responsibilities and budgets are clearly identified for implementation, monitoring and reporting.

4. The EMP is to be implemented in all phases of the project cycle, including design, pre- construction, construction, and operation. In the detailed design stage, the EMP will be used by the design institute for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, as needed. The EMP will be disclosed on the ADB website (www.adb.org).

5. The EMP will be included as a separate annex in all bidding and contract documents. The contractors will be informed of their obligations to implement the EMP, and to provide for EMP implementation costs in their bids for project works.

B. Organizational arrangements and EMP implementation arrangements

6. Shaanxi Provincial Transport Department will be the executing agency (EA) and responsible for overall guidance during project preparation and implementation. Yan’an New District Municipal Public Utility Co., Ltd will be the subproject implementing entity (PIE) and responsible for implementing the component and administering and monitoring contractors and suppliers. A project management office (PMO) by Foreign Capital Utilization Center, the implementing agency (IA) of Shaanxi Provincial Transport Department will be responsible for day- to-day management of the subproject.

7. The PIE will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. The PIE will ensure that the EMP is implemented proactively and responds to any adverse impacts beyond those foreseen in the IEE. The PIE will also attend to requests from relevant agencies and ADB

74 regarding the mitigation measures and monitoring program. It will nominate dedicated, trained, and qualified environment specialists to (i) supervise contractors and ensure compliance with the EMP; (ii) conduct regular site inspections; (iii) coordinate periodic environmental quality monitoring in compliance with the approved monitoring plan; (iv) act as local entry point for the project GRM; and (v) submit environmental monitoring reports to the PMO and EA semi-annually during construction and annually during operation. The PIE will also engage a local environmental monitoring station for environmental monitoring.

8. ADB will conduct regular review missions. PMO will prepare semi-annual/annual environmental monitoring reports and submit them to ADB. ADB will review the reports and disclose them on ADB’s website. If the subproject is incompliance with the EMP’s requirements, appropriate corrective actions shall be taken following ADB’s requirements.

9. Roles and responsibilities for the EMP implementation are presented in Table 1.

Table 1: Project implementation and management organizations Organization Role and Responsibility EA -Coordinating and overseeing project preparation and implementation. -Coordination of strategic issues at regional or national level. -Providing policy guidance and facilitation during implementation. -Coordination with other involved authorities including EEB, development and reform committee, finance bureau, land bureau etc. PMO/IA Main responsibilities include: - Responsible for subproject implementation under the guidance of EA - Prepare management and operation procedures to meet the relevant national and ADB requirements - Organize capacity building and training - Overseeing the project program and activities of the PIE 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 - Solve the compliant received - Coordinating ADB’s review missions and meeting the requirements of ADB - Regularly visit the sites to check the compliance - Review the environmental monitoring reports by PIE then submit them to ADB - Requiring PIE to prepare corrective action plans in the event of noncompliance with EMP or EMoP - Review environmental monitoring reports, then submit to ADB PIE Main responsibilities include: - Contracting and administering design institute, and procurement agency - Contracting and administering contractors and suppliers. - Preparing subproject progress reports and submit to PMO - Operation and maintenance of the subproject - Preparing semi-annual environmental monitoring reports during construction and annual report during operation, and submit to PMO - Ensuring compliance with EMP, EMoP, engaging an external environmental safeguard consultant if necessary - Operation and maintenance of the subproject - Coordinating with PMO in developing subproject management procedures and detailed implementation plan, and monitoring achievement - Obtain necessary approvals from local authorities including EEB. - compliance with PRC laws and regulation and ADB’s prohibited investment activities list 75

EMC - A qualified independent environmental monitoring station will be recruited to implement the ambient monitoring portion of the EMoP. ADB - Providing the EA and IA with guidance to ensure smooth subproject implementation and achieve the desired development impacts and their sustainability - Conducting regular review missions - Monitoring the implementation of EMP and EMoP - Reviewing environmental monitoring reports and disclosing them on ADB website - Updating the subproject information documents for public disclosure at ADB website, including the safeguards documents. - Requiring PMO and PIE to develop corrective action plan for any non-compliance issues ADB = Asian Development Bank, EEB=Ecology and Environment Bureau, EMC= Environmental monitoring company EMP = Environmental Management Plan, EMoP= Environmental monitoring plan.

C. Potential Environmental Impacts and Mitigation Measures

10. The potential impacts of the subproject during pre-construction, construction and operation have been identified and appropriate mitigation measures developed (see Chapter V of the IEE). Potential impacts and the mitigation measures are presented in Table 2.

Table 2: Environment Impacts and Mitigation Measures

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by A. Detailed Design Phase Environmental mitigation and PIE PMO, EA Detailed pollution control measures Design identified in the IEE, the EMP and Budget the domestic EIA will be Include incorporated into the detailed mitigation design. A health and safety measures and management plan will be monitoring developed to include appropriate program in measures to ensure risks to detailed community is negligible and OHS Incorporate design risks can be managed to Mitigation acceptable level. Measures and Recommendations in the detailed Monitoring in design will be implemented and Detailed included in the bidding documents. Design and Bidding and Environmental mitigation PIE PMO, EA Detailed Contracting Design Include measures identified in the IE, EMP Budget mitigation and the domestic EIA will be measures and incorporated in the bidding monitoring documents and will be included in program in contract documents for civil bidding constructions and equipment documents installations. All contractors shall be required to strictly comply with the EMP. Environmental The environmental monitoring PIE PMO, EA Detailed

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by monitoring program will be incorporated into Design incorporated the design to ensure that Budget into design. environmental impacts are closely monitored and activities of the project construction and operating are closely supervised against the PRC environmental laws, regulations and standards, ADB SPS 2009, and the project EMP. Grievance Impacts on In accordance with the GRM PIE PMO, EA, PMO Redress project presented in Chapter VIII, a staff ADB Operating Mechanism Affected member from PIE and PMO will be Budget (GRM) Persons assigned to be overall responsible for the GRM; GRM training will be provided for PMO, PIE and GRM access points addresses and emails will be disclosed to the public. B. Construction Phase Flora and Removal of A greening plan will be implemented: Contractor, PMO, EA Contractor Fauna vegetation Site vegetation plans will be developed PIE construction using appropriate native species. budget During construction, construction working areas will be demarcated to prevent encroachment and damage to adjacent areas. Wastewater Surface and Good wastewater management Contractor, PMO, EA, Contractor groundwater practices as set out in EHS Guidelines PIE ADB construction contamination on Construction and Decommissioning budget from and EHS General Guidelines: construction Worker camp will be installed with wastewater, sufficient toilets which will be provided and domestic for the workers and domestic water wastewater will be treated in septic tank and discharged to the municipal sewerage system on a regular basis. Once the construction starts, if it is found that toilets are not enough or there are female workers, more toilets will be provided. Construction wastewater will be directed to temporary detention and settling ponds, and then treated water will be partly recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer system and the waste residue in the tank is cleared and transported to designated certificated and engineered landfills by the local sanitation department personnel. If needed, polyacrylamide flocculent will be used to facilitate particle settling. All discharged construction wastewater will to be treated to meet the 77

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by appropriate PRC standard GB/T 31962-2015 prior to discharge. Discharged water will then be treated in the WWTP of Yan’an New District. 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. Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation. Storage facilities for fuels and oil within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits. The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88). Erosion and Soil erosion, Good practice construction erosion Contractor, PMO, EA Contractor Spoil spoil disposal controls and site maintenance as set PIE construction out in EHS Guidelines on C&D and budget EHS General Guidelines: At construction site, the potential for storm water runoff will be assessed and appropriate storm water drainage systems to minimize soil erosion will be implemented, including perimeter bunds and establishment of temporary detention and settling ponds to control topsoil runoff. Land excavation and filling will be balanced so as minimize the requirement for fill material transportation. During earthworks, the area of soil exposed to potential erosion at any time will be minimized through good project and construction management practices. Temporary spoil storage sites will be identified, designed, and operated to

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by minimize impacts. Spoil sites will be restored at the conclusion of storage activities. Spoil will be reused on-site to the maximum extent feasible as fill. Excess spoil that cannot be used on-site will be transported to Yan’an City landfill. Spoil and aggregate piles will be covered with landscape material and/or regularly watered. Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal. Construction and material handling activities will be limited or halted during periods of rains and high winds. Any planned paving or vegetating of areas will be done as soon as practical after the materials are removed to protect and stabilize the soil. Once construction is complete disturbed surfaces will be properly sloped and revegetated with native trees and grass. Air Pollution Dust, vehicle The following air quality management Contractor, PMO, EA Contractor emissions measure and construction good PIE construction practice as set out in EHS Guidelines budget on C&D and EHS General Guidelines will be implemented: Water will be sprayed on active construction sites including where fugitive dust is being generated on a daily basis, and more frequently during windy days. Transport vehicles will be limited to low speeds in construction sites. Loads will be covered during truck transportation to avoid spillage or fugitive dust generation. Fine materials will be transported in fully contained trucks. Construction site roads will be well maintained and watered and swept on an as-needed basis. Construction site road entry points will be equipped with truck drive through wash ponds. Transport routes and delivery schedules will be planned to avoid densely populated and sensitive areas, and high traffic times. Store petroleum or other harmful materials if any 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). 79

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by Temporary fencing will be erected around dusty activities. Construction spoil, aggregate and other construction materials will be temporary stored using containers, but they may still have the potential to generate dust. Thus, containers will be covered and/or watered if necessary. Powdered materials such as cement and lime will be stored in sealed bags or containers. Muddy or dusty materials on public roads outside the exits of works areas will be cleaned immediately. On-site asphalting and concrete batching are prohibited. Drilling sites will be fenced during drilling. Fence will be installed at site boundaries and dust monitoring will be implemented at sensitive receptors to ensure compliance. Disturbed site will be revegetated as soon as possible after the completion of works. Noise Impacts from To ensure construction activities meet Contractor, PMO, EA Contractor construction PRC noise standards (Noise Standards PIE construction noise on for Construction Site Boundary, GB budget sensitive 12523-2011) and to protect workers, resources the following mitigation measures and construction good practice as set out in EHS Guidelines on C&D and EHS General Guidelines will be implemented: 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. 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 in advance. When undertaking construction planning, simultaneous high-noise activities will be avoided, and high noise activities will be scheduled during

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from operating at the same location. 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 subproject site. High noise construction activities will be positioned as far away from sensitive sites as possible. Drilling site will be enclosed by fence to reduce noise, if necessary Solid Waste Inappropriate The following solid waste Contractors, PMO, EA Contractor Waste management measure and local construction Disposal construction good practice as set out sanitation budget in EHS Guidelines on C&D and EHS departments General Guidelines will be (domestic implemented: waste), Wastes will be reused or recycled to the licensed extent possible. waste Littering by workers will be prohibited. collection Excavated soil will be backfilled onsite companies to the extent possible. Excess spoil that (construction cannot be used on-site will be waste) transported to Yan’an City landfill site. Domestic waste containers will be used for domestic waste collection at work 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. 81

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by 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, waste from drilling and contaminated soils that remain on the site after construction. Storage facilities for fuels and oil, if any will be within secured areas on impermeable surfaces provided with dikes with a 110% volume, and at least 300 m from drainage structures and important water bodies. A standalone site within the storage facility will be designated for hazardous wastes. Signs will be placed at hazardous materials storage sites to provide information on type and name of hazardous materials. Socioeconomic Community Transportation routes and delivery Contractors, PMO, EA Contractor Resources Disturbance schedules will be planned during PIE construction and Safety detailed design to avoid densely budget populated and sensitive areas and high traffic times. Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. Signs will be placed at construction sites in clear view of the public, warning people of potential dangers such as moving. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate. Socioeconomic Worker Contractors will implement adequate Contractor, PMO, EA LIEC Resources Occupational precautions to protect the health and safety PIE Budget Health and of their workers: Safety Each contractor will undertake H&S risk assessment of construction works and implement relevant construction phase EHS plan in line with

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by construction good practice as set out in EHS Guidelines on C&D and Occupational H&S guidelines. Contractor Identify and minimize the causes of construction potential hazards to workers. budget Implement appropriate safety measures. Provide training to workers on occupational health and safety, emergency response, especially with respect to using potentially dangerous equipment and storage, handling and disposal of hazardous waste. Induction will be conducted before construction and no worker is allowed on site without induction. Ensure that all equipment is maintained in a safe operating condition. Provide appropriate PPE to workers. Implement COVID-19 prevention measures, including disinfection/cleaning of offices, construction sites and labor camps, on- site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any worker is infected with COVID Provide procedures for limiting exposure to high noise or heat working environments in compliance with PRC occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and World Bank EHS Guidelines. Ensure regular safety meetings with staff. Physical As yet A construction phase chance find procedure Contractors PIE In the event Cultural unknown will be established and activated if any supported that a PCR Resources PCRs may be chance finds of PCRs are encountered: by local is damaged if construction activities will be Cultural discovered, proper immediately suspended if any PCRs Heritage the direct precautions are encountered; Bureau cost for are not taken destroying, damaging, defacing, or comp- concealing PCRs will be strictly ensation to prohibited in accordance with PRC contractor regulations; will be local Cultural Heritage Bureau will be covered by promptly informed and consulted; and, a special construction activities will resume only fund to be after thorough investigation and with devel-oped the permission of the local Cultural for cultural Heritage Bureau. relic In case of any PCR is found, ADB SPS protection. 2009 requirements as well as PRC 83

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by laws and regulations will be followed.

C. Operation Phase

Air Pollution Vehicle Keep good maintenance of vehicles PIE PMO, emission, and road. EEB, EA PIE cooking fume The underground garage adopts forced operation ventilation, and the mechanical budget exhaust volume is calculated according to the ventilation time of 6 times/hour. Landscape plants will be planted around the underground garage exhaust outlet to improve the ambient air quality. Cooking fume will be treated by oil fume purifier with an exhaust air volume of 2,000 m3/h and a removal efficiency at 75%, then discharged by flue pipe. Wastewater Discharge of The domestic wastewater generated by PIE PMO, EA, PIE Wastewater the Shuibao Daming Gong Logistics EEB operation plot and B-type Bonded Area Logistics budget plot is pretreated by the septic tank and discharged to the municipal sewage pipe network. The domestic wastewater of the Hetaoshuta Logistics Park plot is pretreated by the septic tank and transported by sewage truck to the wastewater treatment plant. The wastewater generated by this subproject will be finally discharged into the wastewater treatment plant (WWTP) of Yan'an New District for treatment. Solid Waste Collection and The domestic garbage waste PIE, District PMO, EA, PIE Disposal generated is required to be classified Sanitation EEB operation and then collected, transferred and Departments budget disposed by local the sanitation department. The daily generated domestic waste shall be cleared collected on a daily basis to prevent secondary pollution. Waste package materials will be sold to manufactures for recycling. Kitchen waste will be collected, transferred and disposed by third party certificated company Noise Impact on Low-noise equipment will be used as PIE PMO, EA, PIE Sensitive far as possible, and noise reduction EEB operation Receptors measures such as noise elimination, budget shock absorption, insulated enclosures and sound dampening materials on

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by exterior walls will be implemented. All equipment will be properly maintained in order to minimize noise. Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S. Layout of subproject sites will be reasonable planned to reduce noise. Noise monitoring will be conducted at the site boundaries and sensitive receptors for compliance. Community Risks to Operation phase EHS plan and traffic PIE PMO, EA PIE and Workers and management plan will be developed operation Occupational Community and implemented and workers will be budget Health and trained regularly on their Safety implementation. The nearby communities will be informed of the potential risks and the emergency response plan. PPE including goggles, gloves, safety shoes will be provided to workers. Noise protection equipment will be provided to workers in high-noise area. Provide training to workers on occupational health and safety, and emergency response. Implement COVID-19 prevention measures, including disinfection/cleaning of offices, on-site temperature checks, social distancing measures, mandatory use of personal protective equipment such as facemasks, provision of handwashing stations and hand sanitizers etc., and procedures to be adopted in the event any staff is infected with COVID Transporting vehicles will slow down to 30 km/h and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals. Regular maintenance of vehicles to minimize potential accidents caused by equipment malfunction. Subproject sites will be fence with restricted public access. 85

Potential Responsibility Source of Impacts and Mitigation Measures and/or Safeguards Category Implemented Supervised Funds Issues by by Emergency Emergency A draft emergency risk and response has PIE PMO, EA PIE Response Response been established in accordance with the operation “National Environmental Emergency Plan” budget (24 January 2006), other relevant PRC laws, regulations 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. 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 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.

D. Environment Monitoring Plan

11. There are three types of project monitoring in the EMP.

i) Compliance monitoring. It is conducted by PMO.

ii) Internal monitoring. It is conducted by PIE for internal environmental monitoring including air quality and noise monitoring during the construction phase, and noise monitoring during the operation phase.

iii) External monitoring. It is conducted by qualified environmental monitoring units, including monitoring of ambient air and noise during construction phase, and noise monitoring during operation phase.

12. ADB will review the compliance of the project based on the semi-annual environmental monitoring report submitted by the PMO and the on-site investigation. The monitoring and reporting arrangements for this subproject are listed below.

(1) Project preparation review

13. Before the subproject starts construction, PIE will evaluate the preparations for the environmental management in a series of indicators (See Table II) and report the assessment results to ADB and PMO. This assessment needs to prove that before the subproject starts, all environmental commitments are implemented, environmental management systems are in place, or corrective actions are in place to ensure that project owners meet the requirements. Some of these commitments are particularly important because some of the information related to them is not submitted in the TA stage, or they are not properly resolved due to the late submission in the TA phase.

Table 3: Evaluation values of project preparation phase Indicator Criteria Evaluation

Is environmental supervision in The EIA institute is hired (IA) Yes No place? Is it consistent with loan The borrower must ensure that the project design and EMP are Yes No agreements and consistent with the loan agreement loan guarantees? Public Adequate public participation survey Yes No participation The GRM was effectively established Yes No effectiveness Does the contract The bidding documents and contracts shall list the environmental contain protection and safety guarantees that need to be observed in the Yes No environmentally loan guarantee. safe content

Site construction The PIE has the site construction planning Yes No planning

Provide documentation that the solid waste disposal unit has Solid waste sufficient capacity and willingness to accept the solid waste Yes No management (including domestic waste, hazardous waste, etc.)

Financial support PIE need to ensure the funds to implement EMP Yes No for EMP

(2) Project monitoring

14. The environmental monitoring plan of this subproject is shown in Table III, which stipulates the scope, location, parameters, duration and frequency of monitoring during construction and operation phases, and the corresponding responsible units. Internal environmental monitoring includes noise monitoring during the construction phase, and external monitoring includes dust, noise and waste water monitoring during construction and monitoring of noise and wastewater during operation.

15. The environmental monitoring implementation standards are shown in Table IV. The results that exceed limits of the standard should be highlighted in the monitoring report. The monitoring results are first submitted to the PIE, who will then incorporate it in the semi-annual environmental monitoring report during construction and annual report during operation, and submit them to PMO and PMO will review the reports and submit them to ADB.

Table 4: Environmental Monitoring Plan Cost Monitoring Monitoring Executive Regulatory (ten Project Indicator location frequency agency Authority thousand yuan) Construction phase (1 year) Environmental Site Dust TSP Quarterly monitoring PIE 28.0 boundary agency Quarterly with one Equivalent Environmental Factory daytime noise and Noise continuous A- monitoring PIE 9.6 boundaries one nighttime level sound Leq agency noise. Wastewater COD, pH etc. Wastewater Quarterly during following PRC discharge construction Environmental requirements point of the monitoring PIE 6.0 construction agency site Solid Waste Compliance Waste Monthly during Contractor inspection of collection construction implementation and disposal of solid waste sites. management On a regular basis PIE, local measures sanitation NA department Waste collection by local sanitation department Hazardous and Compliance Storage Monthly during Contractor PIE, EEB NA Polluting inspections of facilities for construction Materials implementation fuels and oil. of hazardous Vehicle and materials equipment management maintenance measures areas. Flora and Compliance Construction Monthly during Contractor PIE, EEB NA Fauna inspection of site construction land clearing to ensure mitigation measures are being implemented

Compliance Construction Monthly during Contractor PIE, EEB NA inspection of site construction implementation season Socioeconomic of traffic control Impacts measures

EHS Compliance Construction Monthly during Contractor PIE, EEB NA inspection of site construction EHS measures season including records on near miss, minor, major, fatal accidents and an Emergency Response Plan Total construction phase (1 year) 43.6 Operation phase (first 2 years) One measuring Equivalent every six months, Environmental continuous A- Factory and one time in the Noise monitoring PIE, EEB 21.6 level sound boundaries daytime and the agency Leq other in the nighttime. Wastewater COD, pH etc. Wastewater Quarterly following PRC discharge Environmental requirements point of the monitoring PIE 10.0 sites agency

EHS Compliance Construction Monthly PIE EEB, other NA inspection of site relevant EHS authorities measures including records on near miss, minor, major, fatal accidents and an Emergency Response Plan Total operation phase of Project (2 years) 31.6 Total 75.2

Table 5: Monitoring Indicators and Applicable Standards Stage Indicator Standard Dust at the site boundary Dust Emission Limit at Construction Site Boundary (DB61/1078- TSP 2017)

Noise limits for construction Environmental Noise Emission Standards for Construction Plant Construction plant boundaries Leq Boundaries (GB12523-2011) phase

Waste water Integrated Standards for Wastewater Discharge (GB8987-1996)

Site boundary noise Noise Emission Standards for Industrial Enterprises at Plant Leq Boundary (GB 12348-2008) Operation phase Waste water Integrated Standards for Wastewater Discharge (GB8987-1996)

(3) Compliance assessment

16. PMO conducts an independent assessment of the project's EMP conformity and PMO can hire LIEC if necessary. The PIE will prepare environmental monitoring reports which should include compliance of the subproject with the EMP and local laws; independent evaluation results (the PIE and its contractors are in compliance with the EMP and a qualified environmental monitoring agency issue environmental monitoring results); environmental-related implementation issues discovered and necessary corrective actions; the operation and performance of the project’s GRM; the capacity enhancement and training conducted and the compliance of all terms of the project.

Table 6: Reporting requirements Reporting Report Submitted to Frequency party Construction phase

Environmental Semi-annual Environmental monitoring report PIE PMO, EA monitoring report

Environmental Semi-annual Environmental monitoring report PMO/EA ADB monitoring report Operation phase Environmental monitoring report Environmental (first two years of the project PIE PMO, EA Annual report monitoring operation phase)

Environmental monitoring report Environmental (first two years of the project PMO/EA ADB Annual report monitoring operation phase)

E. Institutional Strengthening and Capacity Building

17. The institutional strengthening and capacity building focus on the safeguard requirements of relevant PRC laws and regulations and the ADB SPS 2009. The training will focus on the ADB

SPS; PRC safeguard requirements; development and implementation of EHS plans during construction and operation; implementation of the EMP, the EMoP, and the GRM; and worker and community health and safety issues and measures (Table 7).

Table 7: Institutional strengthening and training program

# Training Train Attende Day Budget Contents Times Perso Topic ers es s (USD) ns ADB and PRC laws, regulations and policies − ADB’s Safeguard Policy Statement − Project applicable PRC environmental, health and safety laws, policies, standards and regulations Training Construc − International environmental, health 2 (once Develop tion and safety management practice in prior to ment Phase civil irrigation and drainage start of

Environ Contrac construction constructi Fixed ment, LIEC tors, GRM on, and 2 30 costs: Health PIE − GRM structure, responsibilities, and then once $2000 per and timeframe during course Safety Types of grievances and eligibility constructi − delivery x Training assessment on) 2= $ 4,000 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 Training regulations Develop Operatio 2 (once − International environmental, health ment n Phase prior to and safety management practice in Environ start of civil irrigation and drainage operation ment, operation, GRM Fixed Health LIEC PIE and then 2 30 − GRM structure, responsibilities, and costs: and once timeframe $2000 per Safety during course Plan − Types of grievances and eligibility second assessment delivery x Training year) Implementation of Operation Phase 2 = $4,000 EMP − Impacts and mitigation measures − Monitoring and reporting requirements − Non-compliance and corrective actions Total 6 60 $8,000

F. Performance Indicators

18. Performance indicators (Table 8) 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 8: Performance Indicators

No. Description Indicators (i) Appoint appropriately qualified environmental and social staff. 1 Staffing (ii) 3rd party environmental monitoring entity engaged. (i) Environment mitigation cost during construction and operation is sufficiently and timely allocated. 2 Budgeting (ii) Environment monitoring cost is sufficiently and timely allocated. (iii) Budget for capacity building is sufficiently and timely allocated. (i) Compliance monitoring is conducted as per EMP and EMoP. 3 Monitoring (ii) Construction phase and operation phase environmental monitoring is conducted by environmental monitoring company. (i) PMO review the implementation of EMP. 4 Supervision (ii) ADB review environmental monitoring reports. (i) Semi-annual/annual environmental monitoring reports prepared by the PIE are submitted to PMO 5 Reporting (ii) PMO submit semi-annual/annual environmental monitoring reports to ADB. Capacity (i) Training on ADB safeguard policy, EMP implementation, and GRM is 6 Building provided during subproject implementation. (i) GRM contact persons are designated at the PIE and the PMO, and Grievance GRM contact information disclosed to the public before construction. 7 Redress (ii) All complains are recorded and processed within the set time Mechanism framework in the GRM of this IEE. Compliance with (i) Project complies with the environmental laws and regulations 8 PRC’s PRC standards and meets all required standards.

G. Cost budget

19. The implementation cost of the EMP includes three parts: mitigation measures, environmental monitoring and training (Table 9 ). The following costs are excluded from the budget: (i) revision and adjustment of the design; (ii) cost of infrastructure related to the environmental and public health, which has already been included in the project’s direct investment; (iii) Remuneration of PIE environmental and social staff. All the budget is estimated based on project experience similar to this project.

Table 9: Estimated Budget for Implementing EMP Unit: 10,000 yuan Mitigation Monitor Item GRM Training (Table 7) LIEC Total measures (Table 4) Yan'an Green Urban District 5.0 90 75.2 8.4 30 208.6 Demonstration Total 5.0 90 75.2 8.4 30 208.6

H. Mechanisms for Feedback and Adjustment

20. The effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. If, during compliance inspections and monitoring, substantial deviation from the EMP is observed, the PMO and PIE will propose appropriate changes to the EMP and the environmental monitoring plan.

21. Any EMP adjustments will be subject to ADB review and approval and ADB may pursue additional environmental assessment and, if necessary, further public consultation. The revised EMP with ADB confirmation is subject to reposting on the ADB’s website as the ADB public communications policy requires. The revised EMP will be passed on to the contractor(s) for implementation.