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Environmental Impact Analysis in This Report Environmental Impacts Assessment Report on Project Construction Project name: European Investment Bank Loan Hunan Camellia Oil Development Project Construction entity (Seal): Foreign Fund Project Administration Office of Forestry Department of Hunan Province Date of preparation: July 1st, 2012 Printed by State Environmental Protection Administration of China Notes for Preparation of Environmental Impacts Assessment Report on Project Construction An Environmental Impacts Assessment (EIA) Report shall be prepared by an entity qualified for conducting the work of environmental impacts assessment. 1. Project title shall refer to the name applied by the project at the time when it is established and approved, which shall in no case exceed 30 characters (and every two English semantic shall be deemed as one Chinese character) 2. Place of Construction shall refer to the detailed address of project location, and where a highway or railway is involved, names of start station and end station shall be provided. 3. Industry category shall be stated according to the Chinese national standards. 4. Total Investment Volume shall refer to the investment volume in total of the project. 5. Principal Targets for Environment Protection shall refer to centralized residential quarters, schools, hospitals, protected culture relics, scenery areas, water sources and ecological sensitive areas within certain radius of the project area, for which the objective, nature, size and distance from project boundary shall be set out as practical as possible. 6. Conclusion and suggestions shall include analysis results for clean production, up-to-standard discharge and total volume control of the project; a determination on effectiveness of pollution control measures; an explanation on environmental impacts by the project, and a clear-cut conclusion on feasibility of the construction project. In addition, other proposals on reducing environment impacts shall also be put forward. 7. Opinion for Preliminary Approval shall refer to replies from the competent authorities for industry category concerned, and where there is no such competent authority the opinion for Preliminary Approval may be left blank. 8. Opinion upon Approval shall refer replies from the competent authorities in charge of the project. Environment Impacts Assessment Certification （pasted here） Project Name: European Investment Bank Loan Hunan Camellia Oil Development Project Construction Entity: Foreign Fund Project Management Office of Forestry Department of Hunan Province Assessment Entity: Hunan Provincial Academy of Environmental Protection Science (sealed) Project Principal Person: DAI Qunying Appraisers Name Position Certificated No. Contributions Signature Registered EIA Main report, Appraiser Cert. DAI Qunying senior engineer Conclusion and No. suggestions A27020190700 General Information introduction, EIA Appraiser Environment status, TANG Bin engineer No.A27020079 protection measures and ecological thematic report EIA Appraiser Engineer Analysis and LI Jin engineer No.A2702025160 EIA 0 Proofreading: ZHOU Licheng Report censor: LIU Jiawen European Investment Bank Loan Hunan Camellia Oil Development Project Project Basic Information Project Name European Investment Bank Loan Hunan Camellia oil Development Project Project Owner Foreign Fund Project Management Office of Forestry Department of Hunan Province Legal Representative LI Shuming Contact LI Shuming Person Mailing Ziyuan Road 356#, Changsha, Hunan Province Address Telephone 13607484636 Fax Post code 41000 0 Totally 14 counties (cities) in Hunan Province, namely Liling City, Hengyang County, Hengshan County, Qidong County, Shaoyang Places of Construction County, Miluo City, Pingjiang County, Sangzhi County, Qiyang County, Ningyuan County, Xupu County, Zhongfang, Huayuan County and Baojing County. Authority for Project Approval Establishment Code Industry Silviculture & Forest New project & Renovation / Category plantation A021 Nature of Construction Expansion project /Code Land area Afforestation 2.89 ×108 2.89 ×108 (m2) Area (m2) Percentage of In which, Investment on Total Investment Investment on Environmental 56000 2095 RMB 3.74% Volume(10,000 RMB) Environmental Protection in RMB Protection Total Investment Anticipated Date of EIA Cost － January 2018 Operation Project Content and Scale 1.1 Project Origin Camellia oleifera, which is originated in China, is notable as an important source of edible oil (known as tea oil or camellia oil) obtained from its seeds. It is one of economic tree species that has competitive advantage and one of agricultural produces has great potential in the international market. In recent years, the State Council of China attached great importance to development of Camellia oil industry. They had issued a range of measures in 2007 and 2008. for example, The General Office of the State Council issued Suggestion on promoting the development of oil production (General Office of State Council [2007] 59), and the State Council suggestion on promoting agriculture health development and protecting the security of supply of edible vegetable oil European Investment Bank Loan Hunan Camellia Oil Development Project industry "(The General Office of the State Council [2008] No. 36), a proposal for giving a further boost to Camellia oil and others oil crops production. In January 2008, Premier Wen Jiabao specially made an important instruction on Camellia oil industry development, he said: "the State Forestry Administration should conjunct with the others departments to make out a scientific planning and elaborate corresponding measures on the basis of fully research. Vice Premier Hui Liangyu also instructed: "Please according Premier Wen Jiabao’s instruction, make a scientific planning to promote the development of Camellia oil industry. Subsequently, the State Forestry Administration issued "State Forestry Administration's suggestion on the development of the Camellia oil industry", and elaborated the State Camellia industry Development Planning (2009~2020). In 2009 No. 1 Document of the CPC Central Committee and the State Council, Numbers of opinion on steady promoting the development of agriculture and the continuance of increase farmer’s income, it pointed out “we shall in support of expanding economic crops production in its favorable areas, and implementing the State development planning as soon as possible, supporting appropriate regions Camellia oil develop in priority, and accelerate breeding the high-yield Camellia varieties. From June 22 to 23, 2009, on national forestry work session, it was emphasized that we should focus on developing walnut, chestnut and camellia woody oil industries. In No. 1 Document of Central government in 2010 saying "we shall boost edible oil production, speed up county level production bases construction of high quality rapeseed and peanut, and actively promote the development of camellia oleifera, walnut and other woody oil”. In order to realize the instructions of the leaders of the State Council, understood the essence of the document of State Forestry Administration, transfer Hunan’s Camellia oleifera resources advantage into economic advantages, make Camellia oleifera industry to be a pillar industry with Hunan regional characteristics, Hunan Provincial Government issued Suggestion on accelerating the development of Camellia oleifera industry, a goal has been put forward, in Hunan, to 2015 the total Camellia oleifera area will reach 1.333 million hectare, include the production base 667,000 hectare, yield of camellia oil will reach 750 kg / ha. International cooperation is one of effective approaches that broaden forestry financing channel, it provide an important platform for introduce of those advanced forestry concepts and technology. In recent 20 years, Hunan Province has implemented 8 international loans or grants projects in successive, namely World Bank loan national afforestation project, World Bank loan forest resources development and protection project, World Bank loan forestry development of poverty areas project, World Bank loan forestry sustainable development project, Sino-European cooperation natural forest management project, Sino-Germany financial cooperation Hunan Dongting Lake ecological afforestation project, Sino-Germany financial cooperation small farmers afforestation project in Hunan, Sino-Germany technical European Investment Bank Loan Hunan Camellia Oil Development Project cooperation in forest sustainable management policies and models of southern China. The total afforestation area in those international projects achieved 323,400 hectare, the total investment hit 1.065 billion RMB, in which 640 million RMB is foreign funded. During the implementation process of these foreign-funded projects, Hunan has accumulated rich project management and technical experience, besides this Hunan accumulated a lot of valuable research method and project promotion experience, which will contribute to the implementation of European Investment Bank loan Hunan Camellia development project. In May 2012, the Hunan Provincial Forestry Industry Survey Design and Research Institute completed the preparation of the feasibility study report of the European Investment Bank loan Hunan Camellia oleifera development project. According to the Environmental Impact Assessment Law and Ordinance on Administration for Environmental Protection of Construction Project, all the construction projects in China should carry out the environmental impact assessment policy. Foreign Fund
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