INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Authorized Report No.: 41762

Date ISDS Preparedmpdated: November 5.2007

I. BASIC INFORMATION

A. Basic Project Data

Project ~&e: as-fired Combined Cycle Thermal Power Project Task Team Leader: Ranjit Lamech

Public Disclosure Authorized Estimated Appraisal Date: November 2007 Estimated Approval Date: December 2007 Managing Unit: EASTE Lending Instrument: Carbon Finance

. Sector: Power (60%); Oil and Gas (40%) Theme: Climate Change, Energy and Environment IBRD Amount (US$m.): IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts bv source: Carbon Finance (US$m): 43.8 Environmental Category: B Simplified Processing Simple U Repeater U Is this a transferred project Yes U No Public Disclosure Authorized B. Project Objectives The objective of the project is to encourage the development of clean power generation options in by purchasing Certified Emission Reductions (CERs) resulting from the generation of electricity by a gas-fired CCGT power plant.

The key indicator is the annual delivery of CERs to be verified by the Designated Operational Entity (DOE) according to annual measurements of actual carbon reductions relative to those planned.

C. Project Description The Huizhou CCGT Power Plant consists of three combined cycle units. At IS0 (International Standards Organization) conditions, the total installed capacity is 1,l 70 MW (3 X 390 MW). The expected annual electricity output is 4,090 GWh. The electricity generated by the plant is delivered to the Southern China Power Grid (SCPG) which relies mostly on coal-fired power Public Disclosure Authorized plants. The natural gas is supplied from a re-gasification terminal located near which receives the Liquified Natural Gas (LNG) from Australia, under a take-or-pay agreement with the Dapeng LNG Co. Ltd.

The plant is located in Daya Bay Economic and Technical Development Zone in Huizhou City, about 2 14 km from Guangzhou, Guangdong Province All three units are operating satisfactorily and are supplying electricity to the SCPG. Full load operation of each unit has been achieved. The operation of the entire plant at a full load is expected in November 2007. The plant owner plans to install a second (Phase 11) gas-fired CCGT power plant with identical capacity at the same location in the next few years.

The Huizhou Gas-fired CCGT Power Plant was approved as a CDM project by the National Development and Reform Commission (NDRC) of the People's Republic of China on December 13,2006 - after around four years of review and preparation.

D. Project location and salient physical characteristics relevant to the safeguard analysis (if known):

The Huizhou Gas-fired Combined Cycle Thermal Power Plant has a total land area of 41.5 ha, which is located along the coast in Daya Bay Economic Development District under Huizhou Municipality of Guangdong Province. About three quarters of the site is land area and one quarter is sea area, and most of the land area is composed of construction areas acquired in the early 1990s. In addition to the power plant, two 220kV transmission lines were constructed, with a combined length of 40 kilometers, located in both Daya Bay District and Huiyang District in Huizhou Municipality. The related Dapeng LNG Gas Terminal with 39 ha of land areas is located in Dapeng Town, Longgang District, Shenzhen Municipality, Guangdong Province. The LNG pipeline connecting the terminal and Huizhou Gas-fired Combined Cycle Thermal Power Plant has a total length of 47 kilometers. The pipeline passes through Longgang District under Shenzhen Municipality, and Daya Bay District under Huizhou Municipality. Majority of the land acquired during the construction of the terminal (39 ha) and the pipeline were woodland, in addition to a limited amount of farmland. Limited amount of permanent land acquisition and temporary land occupation was required during the construction of the gas pipeline and transmission lines.

E. Borrower's Institutional Capacity for Safeguard Policies:

The process of land use right transfer for Huizhou Gas-fired Combined Cycle Thermal Power Plant and land acquisition for the LNG terminal, pipeline and transmission line was handled by local land resources bureaus of the relevant districts and municipalities. The project sponsors, including the Yudean Group and Huizhou LNG Power Company Ltd., have limited experience with the Bank safeguard policies, but have provided all the relevant documentation to help in the team in completing its post-review of the relevant safeguard policies and practices followed. .

The plant maintains an Environment, Health and Safety Department reporting to the Director of Production. There are ten technical staff and twelve people performing environmental monitoring. The plant has IS0 9001, 14001 and OHSA 18001 certification. Most of the monitoring is confined to source monitoring: NOx stack emissions, and effluent discharge analysis (chemical oxygen demand-COD, and residual chlorine, temperature rise across the condenser). The mission visited the monitoring laboratory and found it to be neat, clean and primarily set up for traditional "wet analysis". The Team believes there is adequate capacity to perform the normal monitoring associated with discharge from this type of power generation facility utilizing natural gas. Ecological monitoring of Daya Bay is the responsibility of the Provincial Ocean Fisheries Bureau and Huizhou EPB.

F. Environmental and Social Safeguards Specialists on the Team:

Bernard Baratz - Environment Specialist Youxuan Zhu - Resettlement and Social Development Specialist

11. SAFEGUARD POLICIES THAT MIGHT APPLY

Safeguard Policies Triggered (please explain why) I Yes I No 1 TBD Environmental Assessment (OP/BP 4.01) X The Project involves a large (1,170 MW) Combined Cycle Power Plant, as well as connected infrastructure (gas pipeline, LNG terminal, transmission lines, etc). Environmental Assessments have been prepared for the Huizhou Gas-fired Combined Cycle Thermal Power Plant, LNG Terminal, Gas Pipeline and power transmission line and approved by the Chinese Government. The Environmental Impact Assessments (EIA) for the Huizhou Gas-fired Combined Cycle Thermal Power Plant, and the LNG Terminal were all of high quality and consistent with World Bank good practice. The LNG Terminal EIA was prepared in accordance with IFC guidelines.

Natural Habitats (OPJBP 4.04) X Impacts of water cooling water discharge on natural habitat and overall qualitative (anecdotal) evidence regarding general ecological character and use of Day Bay resources (fishing, coral reefs, etc) will be evaluated.

Forests (OP/BP 4.36) X

Pest Management (OP 4.09) X

Physical Cultural Resources (OP/BP 4.11) X

Indigenous Peoples (OPJBP 4.10) X The review of resettlement practices for the Huizhou Power Plant and supporting connected infrastructure will confirm that indigenous peoples have not been affectedin any way by these developments.

Involuntary Resettlement (OP/BP 4.12) X The Huizhou Power Plant and the supporting connected infrastructure including the two transmission lines and the LNG terminal and pipelines required land acquisition and resettlement. According to the staff from Huizhou Power Plant and Dapeng LNG Co. Ltd., the construction of these facilities involved permanent acquisition of 90.25 ha of land areas, with 90% of them as state owned land areas. In addition, about 102.6 ha of land areas were occupied temporarily and all of them were collectively owned rural lands.

Since the land acquisition and compensation for both Huizhou Gas-fired Combined Cycle Thermal Power Plant and LNG terminal and pipeline as well as transmission line had already been completed, a due diligence review of the land acquisition process and compensation delivery is being carried out during project preparation. This is being done in order to ensure that the land acquisition for all related components complied with PRC laws and regulations, and basic entitlements for affected people were delivered and no remaining issues left for the Project. Reports on this review will be made available to the Bank safeguard unit for review prior to project appraisal.

Safety of Dams (OPIBP 4.37) X Subject to confirmation that the Dam is utilized as a general source of public water supply and the amount provided to the project is a small fraction of the overall water supply provided by the dam. Projects on International Waterways (OP/BP 7.50) X

Projects in Disputed Areas (OP/BP 7.60) X

Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank- Supported Projects (OP/BP 4.00)

111. SAFEGUARD PREPARATION PLAN

A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: There will be be QER for this project. The PAD-stage ISDS and Decision Package will be prepared for discussion in mid-November.

B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS:

C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS:

The adequacy of the safeguards procedures and practices followed, and the future mitigation plans will be assessed for the CCGT project and the main connected infrastructure. A detailed

I Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-counhy, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. due diligence document will be prepared before the Ilecision Meeting covering the safeguards aspects including: EIA review for power plant and linked projects. Assessment 01' cooling water discharge and influe~lce,if any. on the psolcctcd Daya Bay zone and species. Resettlement practices followed

IV. APPROVALS