China Food Safety Improvement Project Public Disclosure Authorized (Activities of Yantai, Shandong) Environmental and Social Management Framework Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Yantai World Bank Loan Food Safety Project Management Office December 2020 4-1 Strictly Confidential Environmental and Social Management Framework for China Food Safety Improvement Project (Activities of Yantai, Shandong) Table of Contents Abbreviations..................................................................................................... 3 1.Introduction ................................................................................................................. 1 1.1 Project background .......................................................................................... 1 1.2 Description of Yantai Activities ...................................................................... 2 1.3 Project Implementation Arrangements-Yantai ................................................ 9 1.4 Purpose and Scope of the ESMF ................................................................... 11 2. Environmental and Social Regulatory Framework .................................................. 14 2.1 World Bank Safeguard Policies ..................................................................... 14 2.2 Review of China's Environmental Management Regulatory Framework ..... 17 2.3 Evaluation of Social Management System .................................................... 23 3. Environmental and Social Screening and Risk Rating ............................................ 26 3.1 Environmental Screening and Risk Rating .................................................... 26 3.2 Social impact screening and risk rating ......................................................... 28 3.3 Environmental and social negative list .......................................................... 42 4. Environmental and Social Baseline ......................................................................... 46 4.1 Overview ........................................................................................................ 46 4.2 Environmental Quality Baseline .................................................................... 52 4.3 Socio-economic Baseline ............................................................................... 59 5. Environmental and Social Management System for the FI component .................. 62 5.1 Overview of FI component ............................................................................ 62 5.2 Environmental and Social Impact Analysis and Mitigation Measures .......... 62 5.3 Evaluation of Existing ESMS of Potential FI ................................................ 85 5.4 Environmental and Social Risk management Procedures ............................. 90 5.5 Environmental and Social Management Capacity Building of Financial Intermediaries ...................................................................................................... 94 5.6 Public Consultation, Information Disclosure and Grievance Redress Mechanism ........................................................................................................... 98 6. Environmental and Social Management Procedures for Non-FI Components ...... 112 6.1 Overview of Non-FI Components ............................................................... 112 6.2 Environmental and Social Impact Analysis and Mitigation Measures ........ 113 6.3 Sub-project Environmental and Social Management Procedures ................ 122 6.4 Institutional arrangements and capacity building plan ................................ 126 6.5 Public participation, information disclosure and grievance mechanism ..... 129 Annex 1 Environmental and Social Risk Screening Form for Yantai Activities ...... 1-1 Annex 2 China’s laws and regulations and related technical guidelines applicable to this project ............................................................................................................ 2-1 Annex 3 Generic Environmental Management Plans (EMPs) ............................... 3-1 Annex 4 Pest Manage Plan ............................................................................... 4-1 Annex 5: Resettlement Framework .................................................................... 5-1 Strictly Confidential Environmental and Social Management Framework for China Food Safety Improvement Project (Activities of Yantai, Shandong) Annex 6: Information on Public Consultation during ESMF Deveopment ............. 6-1 Strictly Confidential Environmental and Social Management Framework for China Food Safety Improvement Project (Activities of Yantai, Shandong) Abbreviations EHS Environmental, Health and Safety EIA Environmental Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESMS Environmental and Social Management System FSR Feasibility Study Report MARA Ministry of Agriculture and Rural Affairs MEE Ministry of Ecology and Environment OHS Occupational health and safety PLG Project Leading Group PMO Project Management Office PMP Pest Management Plan SA Social Assessment SAMR State Administration for Market Regulation SG Safeguards TA Technical Assistance ToR Terms of Reference WB World Bank Strictly Confidential Environmental and Social Management Framework for China Food Safety Improvement Project (Activities of Yantai, Shandong) 1.Introduction 1.1 Project background In recent years, food safety has become one of the focuses of public attention. With the rapid development of China's economy, the food supply chain is becoming increasingly complex and difficult to supervise, and many problems need to be solved urgently. At present, China's food quality and safety risk management is still lack of preventive management measures, and the overall level needs to be improved. Food safety is at the core of the implementation of the "Healthy China" strategy, so it is necessary to vigorously promote aquatic product safety demonstration projects. The National Food Safety Plan of the 13th five-year Plan (Guofa (2017) No. 12) proposes to fully implement the food safety strategy, strive to promote the reform and innovation of regulatory systems and mechanisms and governance according to law, and promote the construction of a modern governance system for food safety. The development of the food industry should be enhanced so as to facilitate the construction of the healthy China. Food safety is the core of the "Healthy China" strategy. In order to demonstrate better food safety management practices at the national and local levels and reduce food safety risks on selected industrial chains, the World Bank Loan China Food Safety Demonstration Project selected the Ministry of Agriculture and Rural Affairs (MARA) and the State Administration for Market Regulation (SAMR) at the national level, while Shandong Province (Yantai City) and Guangdong Province are selected at the sub- national level to conduct demonstration activities on food safety improvements. Yantai is the key fishing area and the main producing area of dominant aquatic products in China, the renowned production base of high-quality agricultural products in northern China, and the unique animal husbandry industry base. According to the current situation of aquatic product safety, Yantai Municipal Government proposed to 1 Strictly Confidential Environmental and Social Management Framework for China Food Safety Improvement Project (Activities of Yantai, Shandong) carry out the China Food Safety Improvement Project in Yantai City (simplified as “Yantai Activities”). As part of the overall project, Yantai Activities are expected to be launched in 2021 with an implementation period of 5 years. 1.2 Description of Yantai Activities Yantai Activities under the project aims to learn from the best international practice on food safety production and management, and combine it with China's actual conditions and characteristics in the representative aquaculture value chain through the implementation of piloting activities. Yantai Activities will be implemented with four components, namely, 1) Institution building and regulatory performance, 2) Food safety supervision process, 3) Whole food safety value chain control and 4) Project implementation support, which will facilitate the transformation of traditional production, operation and supervision mode and realize the whole-process control from "source" to "dining table". The total investment of the project is 1.303 billion RMB, of which it is planned to apply for a loan of 100 million US dollars from the World Bank. In addition, the project will be complemented with counterpart funds from social capital and other sources of funding. The investment activities that may be involved in Yantai Activities are shown in Table 1.2-1 (based on the Feasibility Study Report dated December 3, 2020). The specific activities and their locations will be finally screened and determined during project implementation. 2 Strictly Confidential Environmental and Social Management Framework for China Food Safety Improvement Project (Activities of Yantai, Shandong) Table 1.2-1 List of Yantai Activities Budget Type of Implementi No. Subcomponent name Description (Million Activities1 ng Agency RMB) 1 Institutional building and regulatory performance 13.8 Focus on key issues and key links affecting the current food Food Safety Researches on safety management, and carry out related researches