Environmental Monitoring Report

Project Number: 38301 March 2016

PRC: Dryland Sustainable Agriculture Project Annual Environmental Impact Report for January 1, 2015 to December 31, 2015

Prepared by Boxing, , , Tancheng, Wudi, Yishui, Project Management Offices for the Provincial Government and the Asian Development Bank.

This environmental monitoring report 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.

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.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province Annual Environmental Impact Report

Subproject: Boxing Golden Seed Co., Ltd.

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Boxing PMO

I. The analysis of the main environmental impact and protection measures

1. Dust: the dust was generated in civil construction, construction materials loading and unloading, stacking process and so on. We had taken many measures to reduce the dust. For example, adopt the sprinklers regularly, cover the scattered building materials. The dust had little impact for the construction period was temporary. After completing construction, the impact would go away.

2. Noise: the noises were mainly generated by construction machinery, transport vehicle. Project construction was not allowed between 9:30 p.m. and 6:30 a.m.. In addition, maximize the adoption of low-noise machinery.

The construction site was more than 5 km away from residential areas.

Therefore, it had little impact.

3. Wastewater: the wastewater was generated in the domestic sewage of the workers. And the impact on the surface water was very small.

4. Solid waste: the solid wastes were mainly rubble, stones, soil, building materials packaging boxes, bags. The solid waste would be cleaned up and transported uniformly by the Sanitation Department. So it had less environmental impact.

II. Proposed corrective plan

In the implementation process, the company strictly enforced the laws and regulations of the State Environmental Protection, which guaranteed

no basic problems in environmental protection. Our company had taken many measures to strengthen the safety of staff environmental awareness.

For example, organize safety production training regularly.

III. Comprehensive evaluation of environmental impact

The project was well implemented with pollutants control measures and the "three simultaneous" system requirements. The environmental management system was sound and the institution was perfect, which could meet the requirements of environmental protection. Wastewater, noise and other pollutants generated in the production process had been discharged under concerned standards.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province Annual Environmental Impact Report

Subproject: Boxing Longsheng Food Co., Ltd.

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Boxing PMO

I. Environmental risk mitigation measures in the project construction, and the progress of

1. Construction of production base

Construction of production base mainly includes land leveling, irrigation and drainage project, which builds a large-scale dry farming, forage intercropping demonstration and vegetable protection. The implementation of the project increases the vegetation coverage, promotes the water drainage and storage capacity, and improves ecological environment within the project area and surroundings.

2. Vegetable processing project

2.1 After the disposing of the boiler exhaust, it will meet the boiler air pollutant emission standards, which certainly will have less impact on the surrounding atmospheric environment.

2.2 In this project, clean water (without any chemical detergent) precipitated in the sedimentation tank will be recycled without emissions, so will the cooling water cooled in the cooling pond and boiler dust water precipitated; blanching water is used for farm compost and sewage for factory greening.

2.3 The solid waste produced by staff will be cleaned up and transported uniformly by the Sanitation Department; vegetable scraps will be used for farm compost; boiler slag will be sold out as building materials. In this way, solid waste has less environmental impact.

2.4 This project takes precedence in the application of advanced low-noise equipment. It adopts damping measures against vibration equipment, installs sound insulation doors and windows, and gives a reasonable planning for the factory greening, etc. Thus it effectively reduces the equipment noise impact on the surrounding environment.

Therefore, the environmental indicators of the project can achieve or meet the requirements of the relevant standards.

II. Problems

The project implementation process basically has no problems on the environmental protection.

III. The data collected

See schedule: environmental objectives, targets and management programs monitoring record sheet.

IV. Proposed corrective plan

In the implementation process, the company strictly enforces the laws and regulations of the State Environmental Protection, which guaranteed no basic problems in environmental protection. Our company runs organic agriculture. One of the most important concepts in business is environmentally friendly, so we attach great importance to environmental protection. So there generally exists no violation of relevant laws and regulations.

Environmental objectives, targets and management programs monitoring record

Actual Expected Target Management Reason analysis of Improvement No. Target projects Units achievement Analyst completion Remarks quantity units incompletion measures status date Domestic sewage COD 1 mg/L 100 100 after disposing Domestic sewage BOD5 2 mg/L 15 15 after disposing Domestic sewage SS 3 mg/L 110 110 after disposing Domestic sewage 4 mg/L 20 18 ammonia after disposing

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Report)

Subproject: Gaomi Mishui Food Co., Ltd.

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Gaomi PMO

I. Environmental risk mitigation measures

1. Environmental risk mitigation measures in agricultural production base

1.1 Improve the agro-ecological environment in the project area

After the implementation of the project, many measures have been taken to improve agricultural ecological environment of the project area, like the promotion of biological control technology, organic fertilizer, strictly control the use of pesticides and fertilizers. The project has significant ecological benefits.

1.2 Improve water utilization

By building water cellars and water-saving irrigation, agricultural irrigation efficiency has improved and agricultural drought resistance has enhanced.

2. The processing projects environmental risk mitigation measures

2.1 Environmental protection measures in the process of project construction

First, reduce dust. Second, control construction noise. Project construction was not allowed between 11 p.m. and the six o'clock next day in the Area within 200m from the civilian house. In addition, maximize the adoption of low-noise machinery. If it must be constructed at night, measures should be taken to reduce noise of the construction machinery. At the same time, set up the temporary sound barrier device

around the construction site or citizen residences to ensure the acoustic environment quality. Third, waste disposal in the construction site.

Promptly clean up the domestic waste, do not arbitrarily throw them.

2.2 Environmental risk mitigation measures after the project Operation

The discharge of wastewater in the project production process is mainly from equipment clean water and ground clean water and there are no other harmful ingredients. So it will not cause harmful effects on the surrounding environment.

II. Environmental monitoring progress

1. Environmental monitoring in the agricultural production base

According to the requirements of the environmental impact assessment, the environmental monitoring of the agricultural production base is mainly against atmospheric, soil and irrigation water quality monitoring.

Entrusted by the Gaomi PMO, Gaomi Environmental Protection Agency is in specific charge of monitoring the atmosphere three times a year, soil and irrigation water quality once a year.

2. Environmental monitoring of the processing project

According to the requirements of the environmental impact assessment, the environmental monitoring of the processing project mainly aims to the industrial "three wastes" emissions. Entrusted by the Gaomi project management office, Gaomi Environmental Protection Agency is specifically responsible for monitoring once per quarter.

III. Records of mitigation and monitoring measures

Category Emission source Pollutants name Quantity

Air pollutants None None None

Water pollutants None None None

Solid wastes None None None

Noise None None None

Others None None None

IV. Work summary

Since the implementation of the project, the project construction unit strictly enforce the environmental protection requirements of "three simultaneous" under the guidance and supervision of the project management office. The environmental protection system is established and strengthened, the environmental risk mitigation measures are improved, and there are no behaviors violating the Environmental

Protection Act.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Report)

Subproject: Qingzhou Quancheng Food Co., Ltd. 200,000 Tons

of Feed Processing Project

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Qingzhou PMO

In the early stage of project feasibility studies, commissioning the

Environmental Impact Assessment Services Ltd. of Qingzhou Fang Yuan to carry out

environmental impact assessment of the project, Qingzhou Green Ring-trial Table

Words C2009J028 Document was approved by the Qingzhou EPA on June 20, 2009.

I. Environmental Monitoring Conditions in Project Area

Favorable Air quality, SO2, NO2 and PM10 reach secondary standards of Ambient Air

Quality Standards (G133095-1996); better quality of groundwater, it reaches III

standards of G13/T14848-93 Groundwater Quality Standards; surface water quality is

not up to V standards of Surface Water Environmental Quality Standards

(GB3838-2002). It was mainly caused by the upstream industrial sewage discharging.

II. Environmental Risk Factors and Countermeasures of the Project Area

1. The response measures against feed dust generated in the project production process

Firstly, adopt confined dust removal equipment and facilities to avoid dust spills.

Secondly, simplify material flow to reduce the dust formation. Thirdly, improve the efficiency of dust removal equipment. Fourthly, frequently clean up the dust deposited on the ground with a vacuum cleaner, etc.

2. Risk factors in the production of coal-fired steam boiler

2.1 Sulfur dioxide and soot emissions generated by coal stoves were mainly disposed through the ceramic Multiple Desulfurization Dirt Catcher. The dust-removing efficiency reached 96%, desulfurization efficiency 80%, efflux dust concentration

72mg/m3, sulfur dioxide concentrations 320mg/m3.

2.2 Boiler is a thermal equipment with explosion hazard. The improper usage and mismanagement in the production process often cause serious accidents. Therefore, in the production, first, be strict with the personnel training and the implementation of rules and regulations; second, strengthen the management and maintenance of equipment.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Report)

Subproject: Tancheng Zhengde Food Co., Ltd.

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Tancheng PMO

I. Environmental risk mitigation measures

1. Environmental risk mitigation measures in agricultural production base

1.1 Improve the agro-ecological environment in the project area

After the implementation of the project, many measures have been taken to improve agricultural ecological environment of the project area, like

Organic fertilizer, Straw Returning, Recipe balanced fertilization, strictly control the use of pesticides and fertilizers. The project has significant ecological benefits.

1.2 Improve water utilization

The construction of pond, irrigation and drainage has improved the capacity of drought resistance, flood relief, and water storage.

2. The processing projects environmental risk mitigation measures

2.1 Environmental protection measures in the process of project construction

First, reduce dust. Second, control construction noise. Project construction was not allowed between 11 p.m. and the six o'clock next day in the area within 200m from the civilian house. In addition, maximize the adoption of low-noise machinery. If it must be constructed at night, measures should be taken to reduce noise of the construction machinery. At the same time, set up the temporary sound barrier device around the construction site or citizen residences to ensure the acoustic

environment quality. Third, waste disposal in the construction site.

Promptly clean up the domestic waste, do not arbitrarily throw them.

2.2 Environmental risk mitigation measures after the project operation

In March 2007, the project construction unit invested over 900 million

RMB to set up the comprehensive treatment and improvement of wastewater project to deal with 1000 cubic meters of waste water. It achieved the double effects of energy conservation by the use of advanced integrated wastewater treatment technique, and the use of biogas to generate electricity in the wastewater treatment process. The wastewater discharged in the prophase has passed the comprehensive disposal of the wastewater treatment station and met environmental requirements. Wastewater discharged during the process is mainly equipment and ground cleaning water. With no other harmful ingredients, it can be directly used for crop irrigation and will not cause any harmful effect on the surrounding environment. The industrial emission discharged in the normal production is mainly steam. Due to the small amount, there is no air pollution.

II. Environmental monitoring progress

1. Environmental monitoring in the agricultural production base

According to the requirements of the environmental impact assessment, the environmental monitoring of the agricultural production base is mainly against atmospheric, soil and irrigation water quality monitoring.

Entrusted by the Tancheng project management office, Tancheng

Environmental Protection Agency is in specific charge of monitoring the atmosphere three times a year, soil and irrigation water quality once a year.

2. Environmental monitoring of the processing project

According to the requirements of the environmental impact assessment, the environmental monitoring of the processing project mainly aims to the industrial "three wastes" emissions. Entrusted by the Tancheng project management office, Tancheng Environmental Protection Agency is specifically responsible for monitoring once per quarter.

III. Records of mitigation and monitoring measures

Category Emission source Pollutants name Quantity

Air pollutants None None None

Water pollutants None None None

Solid wastes None None None

Noise None None None

Others None None None

IV. Work summary

Since the implementation of the project, the project construction unit strictly enforce the environmental protection requirements of "three simultaneous" under the guidance and supervision of the project management office. The environmental protection system is established and strengthened, the environmental risk mitigation measures are improved, and there are no behaviors violating the Environmental

Protection Act.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Report)

Subproject: Wudi Wandefu Food Co., Ltd.

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Submitted by: Shandong Province Wudi PMO

The date products processing project has been completed and put into operation, the environmental protection facilities are working well. Please find the results for environmental monitoring in 2013:

I. Treatment and discharge of the main pollutants

1. Wastewater: the wastewater can be recycled after clean dates. The domestic sewage will be discharged into sewage network for centralized treatment in Haifu Waste Industry Co., Ltd. after settling in the septic tank.

2. Waste gas: the project has equipped with a steam boiler with capacity of 2t/h, it outfits with water film desulfurization deduster. The treated flue gas will be discharged into air through 25m exhaust funnel. The concentration can meet the standard requirements of

(GB13271-2001) under Class 2 time period of Grade 2.

3. Noise: the project adopted low noise facilities, took measures such as sound insulation, sound absorption, damping and so on to those high-noise equipment, those measures highly reduced the impact to local environment. Meanwhile, the project site set up green belts as noise barriers to reduce noise pollution.

4. Solid waste: the by-products such as date pit, fructus corni, and fiber will be used for wine production. The boiler slag will be sold as building materials. The activated sludge was used for agricultural land fertilizing.

The domestic solid waste was collected by sanitation department regularly.

II. Environmental monitoring of main pollutants

Wudi County Environmental Monitoring Station was recruited by our company to conduct environmental monitoring on main pollutants on

30-31 July, 2015. The main results are illustrated as following:

1. Wastewater: the data for concerned pollutant indicators in the wastewater discharge outlet under daily average within 2 days are: PH:

7.91-7.98; SS: 55mg/L, 54mg/L; CODcr: 173mg/L, 170mg/L; ammonia nitrogen: 8.50mg/L, 9.00mg/L; BOD5: 54mg/L, 56mg/L; animal and vegetable oil: 9.6mg/L, 9.94mg/L. The results show that the concentration of the concerned pollutants can meet the requirement of

(CJ343-2010) under Grade B in Table 1.

3 2. Waste gas: the discharge concentration of SO2 was 272mg/m . The concentration can meet the standard requirements of

(GB13271-2001) under Class 2 time period of Grade 2.

3. Noise: the two days monitoring showed that the day time and night time noise value of all 5 mornitored point of the project site boundary all meet the requirements of (GB12348-2008) under Grade 2 function area in

Table 1.

4. Solid waste: the by-products such as date pit, fructus corni, and fiber will be used for wine production. The boiler slag will be sold as building materials. The activated sludge was used for agricultural land fertilizing.

The domestic solid waste was collected by sanitation department regularly.

III. Comprehensive evaluation of environmental impact

The project was well implemented with pollutants control measures and the "three simultaneous" system requirements. The environmental management system was sound and the institution was perfect, which could meet the requirements of environmental protection. Wastewater, waste gas, noise and other pollutants generated in the production process had been discharged under concerned standards.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Report)

Subproject: Yishui Yulong Food Co., Ltd. Peanut Processing

Project

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Yishui PMO

I. Environmental Risk Mitigation Measures

1. Environmental Protection Measures in the Construction Process

First, reduce dust.

Second, control the construction time between 7a.m. and 9p.m. to mitigate the impact of noise on surrounding residents.

Third, dispose the construction waste timely.

2. Environmental Risk Mitigation Measures after the Project Operation

Emissions generated during the production process will not affect the environment. Wastewater (mainly equipment and peanuts cleaning water with no harmful ingredients) can be directly used for crop irrigation, which certainly has no harmful effects on the surrounding environment.

II. Main Data Collected

1. Ambient air quality

Reach the secondary standard to the Ambient Air Quality Standard

(GB3096-1996).

2. Water quality

A small amount of peanut cleaning wastewater is discharged, but it produces no pollutant since there adds no lotion in the cleaning process. It has reached the IV standards of the Surface Water Environment Quality Standard

(GB3838-2002)

3. The noise

The average value of factory noise is 54Db (A), which reaches the secondary

standard of the Urban Area Environmental Noise Standard (GB3096-93).

4. The ecological environment

Greening rate in the construction area is high, so the ecological environment there is favorable.

III. Proposed corrective plan

In the constructing process, strict rules and regulations on environmental management will be formulated. Staff awareness on safety and environmental protection should be strengthened. A specialized training for management personnel should be carried out to make sure the environmental issues can be disposed of promptly and properly when they appear.

IV. Comprehensive environmental impact evaluation

To sum up, construction of the project is in line with the requirements of industrial policy. It has reasonable location and reaches the Pollutant Emission

Standards. Thus it has better environmental, economical, and social benefits.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Report)

Subproject: Yishui Zhenghang Food Co., Ltd. Wheat Flour

Production and Deep Processing Project

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Yishui PMO

Wheat flour production and deep processing project of Zhenghang Food

Co., Ltd. Shandong is located in Zhenxing Road No. 2, Yishui, and it covers an area of about 5 acres. This land belongs to industrial land. The project accords with requirements of Yishui county urban developing plan.

Various pollutants discharged can meet the standard after corresponding control measures. Therefore, the construction of the project is also in line with the requirements of the environmental protection plan.

The project concludes mainly wheat flour production and deep processing projects. The major environmental impacts are about the air, water, noise, solid waste. So the following measures are taken to protect environment.

I. Emission control measures

The process dust: exhaust emissions through 15m tube after removing dust with Tornado and Toi. The concentration of dust emissions accords with the standard values of Atmospheric Pollutants Emission Standard

(GB16297-1996). It is feasible.

II. Wastewater treatment measures

Production wastewater: the process water generated in this project is wheat water, which will not be discharged when it enters into the product.

III. Noise pollution control measures

Equipment prone to produce noise is armed with vibration damping platform, soundproof walls, damping pad or acoustic enclosures to low noise. With the above measures, it effectively reduces the impact on the

surrounding environment of the device noise.

IV. Solid waste management measures

The solid waste generated in the project are mainly garbage, sand, dust, flour and bran, of which the organic impurities, dust and flour collected by dust collector are sold as feed; inorganic impurities and staff garbage are collected and processed uniformly by the Municipal Sanitation

Department. Disposal rate of the solid waste is 100%.

Dryland Sustainable Agriculture Project Using ADB Loan in Shandong Province (Annual Environmental Impact Repor)

Subproject: Zhucheng Zhongkang Agricultural Development

Co., Ltd.

Reporting period: from January 1, 2015 to December 31, 2015

Submission date: December 31, 2015

Shandong Province Zhucheng PMO

I. Environmental risk mitigation measures

1. Environmental risk mitigation measures in agricultural production base

1.1 Improve the agro-ecological environment in the project area.

After the implementation of the project, many measures have been taken to improve agricultural ecological environment of the project area, like organic fertilizer, straw returning, recipe balanced fertilization, strictly control the use of pesticides and fertilizers. The project has significant ecological benefits.

1.2 Improve water utilization

The construction of irrigation and drainage has improved the capacity of drought resistance and flood relief.

2. The processing project environmental risk mitigation measures

2.1 Environmental protection measures in the process of project construction

First, reduce dust. Second, control construction noise. Project construction was not allowed between 9:30 p.m. and 6:30 a.m. next day.

In addition, maximize the adoption of low-noise machinery. If it must be constructed at night, measures should be taken to reduce noise of the construction machinery. At the same time, set up the temporary sound barrier device around the construction site or citizen residences to ensure

the acoustic environment quality. Third, waste disposal in the construction site. Promptly clean up the domestic waste, do not arbitrarily throw them.

2.2 Environmental risk mitigation measures after the project operation

The discharge of wastewater in the project production process is mainly from cleaning wastewater. So it will not cause harmful effects on the surrounding environment. Wastewater is discharged into the development zone sewer network after factory sewage treatment facilities. Therefore, the impact on the environment is small.

Waste vegetables and other solid waste in the vegetable processing production process, are used as animal feed or fertilizer. Therefore, the impact on the environment is small.

To take the appropriate noise reduction measures to avoid noise nuisance.

Besides, after plant soundproofed and distance attenuation and there are no noise-sensitive targets within 200 meters of the project around.

Therefore, it does not produce noise nuisance.

II. Environmental monitoring progress

1. Environmental monitoring in the agricultural production base

According to the requirements of the environmental impact assessment, the environmental monitoring of the agricultural production base is mainly against atmospheric, soil and irrigation water quality monitoring.

Entrusted by the Zhucheng PMO, Zhucheng Environmental Protection

Agency is in specific charge of monitoring the atmosphere three times a year, soil and irrigation water quality once a year.

2. Environmental monitoring of the processing project

According to the requirements of the environmental impact assessment, the environmental monitoring of the processing project mainly aims to the industrial "three wastes" emissions. Entrusted by the Zhucheng PMO,

Zhucheng Environmental Protection Agency is specifically responsible for monitoring once per quarter.

III. Records of mitigation and monitoring measures

Category Emission source Pollutants name Quantity

Air pollutants None None None

Water pollutants None None None

Solid wastes None None None

Noise None None None

Others None None None

IV. Work summary

Since the implementation of the project, the project construction unit strictly enforce the environmental protection requirements of "three

simultaneous" under the guidance and supervision of Shandong PMO.

The environmental protection system is established and strengthened, the environmental risk mitigation measures are improved, and there are no behaviors violating the Environmental Protection Act.