Environmental Impact Assessment (DRAFT)

Home , Changle County, Gaomi, Gaoqing County, Guangrao County, Huantai County, Jiaozhou City

Project number: 47047 May 2016

People’s Republic of China: Shandong Groundwater Protection Project

Prepared by the Shandong Provincial Government for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 3 May 2016) Currency Unit - Yuan (CNY) CNY 1.00 = US$ 0.1545 US$ 1.00 = CNY 6.4741

ABBREVIATIONS ADB - Asian Development Bank LAR - Land Acquisition and Resettlement CNY - Chinese Yuan LIC - Loan implementation consultant CS-EMP - Construction Site EMP MEP - Ministry of Environmental Protection CS-ES - Environment specialist of the project MSW - Municipal Solid Waste management consulting services CSC - Construction supervision company Mu - Chinese land unit (1 ha = 15 mu) EA - Executing Agency NDRC - National Development and Reform EHS - Environmental, health and safety Commission EIA - Environment Impact Assessment OPF - Operators of project facility EMP - Environmental Management Plan PIC - Project Implementation Consultant EMS - Environmental monitoring station PIO - Project Implementation Unit EPB - Environmental Protection Bureau PMO - Project Management Office EPD - Environmental protection department PPTA - Project Preparatory Technical FSR - Feasibility Study Report PRC - People’sAssistance Republic of China GAP - Gender action plan REA - Rapid environment assessment GDP - Gross Domestic Product SPS - Safeguard Policy Statement GHG - Greenhouse Gas TOR - Terms of Reference GRM - Grievance redress mechanism WSCP - Water and soil conservation plan IA - Implementing Agency WSP - Water Supply Plant

WEIGHTS AND MEASURES oC degree centigrade m2 square meter dB decibel m3/a cubic meter per annum g gram ha hectare m3 cubic meter km kilometer m3/d cubic meter per day m3/s cubic meter per second km2 square kilometer mg/kg milligram per kilogram kW kilowatt mg/l milligram per liter L liter mg/m3 milligram per cubic meter LAeq Equivalent continuous A-weighted sound MW megawattpressure level mm millimeter m meter t metric ton t/d metric ton per day t/a ton per annum

NOTE In this report, "$" refers to US dollars.

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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 I. EXECUTIVE SUMMARY ...... 1 A. INTRODUCTION ...... 1 B. BACKGROUND ...... 1 C. PROJECT COMPONENTS ...... 2 D. PROJECT BENEFITS AND FEATURES ...... 2 E. BASELINE ENVIRONMENT ...... 3 F. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 3 G. PUBLIC CONSULTATION AND GRIEVANCE REDRESS MECHANISM ...... 5 H. CLIMATE CHANGE ...... 6 I. ENVIRONMENTAL MANAGEMENT PLAN ...... 6 J. RISKS AND ASSURANCES ...... 6 K. CONCLUSION...... 6 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 7 A. OVERVIEW ...... 7 B. PRC ENVIRONMENTAL LAWS, REGULATIONS, GUIDELINES, AND STANDARDS ...... 7 C. INTERNATIONAL AGREEMENTS...... 9 D. APPLICABLE ADB POLICIES AND WORLD BANK’S EHS ...... 9 E. ASSESSMENT STANDARDS FOR PROPOSED PROJECT COMPONENTS ...... 10 F. ENVIRONMENTAL MANAGEMENT FRAMEWORK AND EIA APPROVAL PROCESS ...... 14 III. DESCRIPTION OF THE PROJECT ...... 15 A. RATIONALE ...... 15 B. IMPACT, OUTCOME AND OUTPUTS ...... 16 C. ASSOCIATED FACILITIES ...... 23 D. ANTICIPATED PROJECT BENEFITS ...... 26 IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) ...... 28 A. ENVIRONMENTAL SETTING OF SHANDONG PROVINCE ...... 28 B. ENVIRONMENTAL SETTING OF PROJECT COUNTIES ...... 28 C. ENVIRONMENTAL BASELINE FOR SHOUGUANG CITY PROJECT SITES ...... 41 D. ENVIRONMENTAL BASELINE FOR CHANGLE COUNTY PROJECT SITES ...... 46 D. ENVIRONMENTAL BASELINE FOR GAOMI CITY PROJECT SITES ...... 50 E. ENVIRONMENTAL BASELINE FOR QINGZHOU CITY PROJECT SITES ...... 55 F. ENVIRONMENTAL BASELINE FOR HUANTAI COUNTY PROJECT SITES ...... 59 E. SENSITIVE RECEPTORS WITHIN PROJECT AREA OF INFLUENCE IN PROJECT COUNTIES ...... 64 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...... 69 A. PRE-CONSTRUCTION PHASE ...... 69 B. CONSTRUCTION PHASE...... 69 (1) GEOLOGY AND SOIL ...... 69 (2) HYDROLOGY, WATER QUALITY AND WATER AVAILABILITY ...... 72 (3) SEDIMENT DREDGING ...... 73 (4) AIR QUALITY ...... 76 (5) NOISE ...... 77 (6) VIBRATION ...... 79 (7) SOLID WASTE ...... 79 (8) ECOLOGICAL RESOURCES ...... 79 (9) SOCIAL AND GENDER ISSUES ...... 80

(10) COMMUNITY AND WORKER HEALTH AND SAFETY ...... 81 (11) PHYSICAL CULTURAL RESOURCES ...... 83 C. OPERATIONAL PHASE ...... 83 (1) JUDIAN WETLAND – MANAGEMENT OF WATER LEVELS AND QUALITY ...... 83 (2) MAINTENANCE OF EMBANKMENTS AND DREDGED CHANNELS ...... 83 (3) OPERATION OF PUMP STATIONS ...... 83 (4) NANZAI AND JUCHENGHE RESERVOIRS AND DAM SAFETY PANEL ...... 84 F. INDIRECT, INDUCED AND CUMULATIVE IMPACTS ...... 84 G. CLIMATE CHANGE AND GREENHOUSE GAS (GHG) EMISSIONS ...... 86 VI. ALTERNATIVE ANALYSIS ...... 89 A. ALTERNATIVES FOR GAOMI WATER DIVERSION ...... 89 B. ALTERNATIVES FOR NANZAI RESERVOIR ...... 89 C. ALTERNATIVES FOR SEDIMENT DREDGING AND DISPOSAL ...... 90 VII. PUBLIC CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE ...... 91 A. INFORMATION DISCLOSURE ...... 91 B. FIRST ROUND OF CONSULTATION ...... 94 C. SECOND ROUND OF CONSULTATION ...... 98 D. FUTURE CONSULTATION ...... 98 VIII. GRIEVANCE REDRESS MECHANISM (GRM) ...... 101 IX. ENVIRONMENTAL MANAGEMENT PLAN ...... 102 X. CONCLUSION ...... 102 ATTACHMENT 1 - ENVIRONMENTAL MANAGEMENT PLAN ...... 104 A. OBJECTIVES ...... 105 B. ORGANIZATIONS AND THEIR RESPONSIBILITIES FOR EMP IMPLEMENTATION ...... 105 C. POTENTIAL IMPACTS AND MITIGATION MEASURES ...... 107 D. ENVIRONMENTAL MONITORING, INSPECTION AND REPORTING ...... 113 E. TRAINING AND CAPACITY BUILDING ...... 116 F. GRIEVANCE REDRESS MECHANISM ...... 117 G. PUBLIC CONSULTATION AND AWARENESS RAISING ...... 119 H. COST ESTIMATES ...... 120 I. MECHANISMS FOR FEEDBACK AND ADJUSTMENT ...... 123

Shouguang City

Huantai County

Qingzhou City Changle County Gaomi City

Map 1: The Five Project Counties, Shandong Province.

Beiyang River works

Connection of Qiyi Water Diverting Reservoir and from Mi River to Raowanghu Bagouzi Reservoir Reservoirs

Connection of Renhe, Heihushan and Qiyi Reservoirs

Map 2: Construction Layout of Qingzhou Project.

Changle Town

Shikang WSP

Nan zhai Bailanghe Reservoir Reservoir

Shanzhuang Dam Gaoya Reservoir

Map 3: Construction Layout of Gaomi Project.

I. EXECUTIVE SUMMARY

A. Introduction

1. The Shandong Provincial Government (SPG), People’s Republic of China (PRC) has requested the Asian Development Bank (ADB) to provide investment and technical assistance support for the Shandong Groundwater Protection Project (the project). The project will help the SPG to improve groundwater management and rehabilitation in the Weifang-Zibo aquifer, the largest source of groundwater in Shandong Province and which supports much of the regional demand for vegetable production, including Beijing. The project will be implemented in two municipalities, Weifang and Zibo. Project activities will be implemented in five administrative regions of these municipalities: the cities of Gaomi, Qingzhou and Shouguang, and the counties of Changle and Huantai (hereafter referred to as ‘counties’). All except Huantai are in Weifang Municipality. Under the ADB Safeguard Policy Statement (SPS, 2009) the project is classified Category A for environment, requiring preparation of an environmental impact assessment (EIA).

2. This EIA has been prepared in accordance with SPS requirements. It is based on information from: (i) five domestic EIAs (DEIAs) prepared by the Shandong Provincial Environmental Science Research Institute (the EIA institute); (ii) five Feasibility Study Reports (FSRs) developed by Shandong Provincial Hydraulic Design Institute; (iii) five Water and Soil Erosion Control Plans (WSECPs) prepared by the same institute; (iv) urban development master plans; and (v) environmental, social, and economic assessments and site visits conducted between May 2014 and February 2015 by a consultant team for the project preparatory technical assistance (PPTA), in cooperation with the provincial and local governments.

B. Background

3. The municipalities of Weifang and Zibo are subject to severe scarcity of surface water (water per capita is about one-sixth of the PRC average) and depend heavily on groundwater. The Weifang-Zibo area is the second largest over-exploited aquifer in the PRC, extending over 5,422 km2. Thousands of groundwater wells of varying sizes (most constructed by residents and only several meters deep) occur in the region, and groundwater tables have dropped to critical levels in many areas. Mean annual precipitation in the project area is around 600 mm, but most rainfall (70%) occurs from June to September, typically followed by a dry period lasting eight months. Natural recharge of groundwater is insufficient to recover from excessive pumping in the dry season. Flooding occurs in summer and storm water is an important water resource, yet most flows to the sea without utilization. The project area is part of the Northern China Plain (NCP), a main vegetable production base supplying food for Beijing, Tianjin and other large cities. As well as water scarcity, over-extraction of groundwater also occurs due to the absence of licensing and permitting systems in agriculture (the largest user), a lack of water pricing, insufficient abstraction metering and groundwater level monitoring, and limited sharing of information.

4. As a result of these issues, agricultural production in parts of Shandong Province has declined or stopped due to lack of water. Pumping costs have increased, groundwater quality is deteriorating due to seawater intrusion and pollution, and financial and economic damage is occurring due to land subsidence. In some areas, seawater intrusion has extended 35 km inland and land subsidence of over 2 m has occurred. Land subsidence is irreversible and urgent action is needed to avoid worsening. Domestic and industrial water demands, although still less than agricultural water use, are increasing due to rapid economic development and urbanization.

5. The SPG is already undertaking multiple initiatives to address some of these issues,

2 including the implementation of digital monitoring systems for security and water allocation for some key reservoirs and their associated channels, reuse of treated wastewater, regulations on groundwater pumping, and the phasing out of unregistered industrial wells. Despite these efforts, groundwater decline and land subsidence continues in the Weifang-Zibo Aquifer. In recognition of these concerns, the PRC government has selected Shandong Province as a demonstration province for modernized water administration. The project will serve as a demonstration of different approaches for environmental restoration of overexploited groundwater areas through improving the management, transfer, and allocation of surface water, storm water retention, groundwater protection, and greenhouse water efficiency.

C. Project Components

6. The expected project impact is groundwater supply for the agricultural sector in the Weifang-Zibo area sustained. The expected outcome of the project is conservation and sustainable use of groundwater resources in Weifang-Zibo area improved. The project will serve as a demonstration of different approaches for environmental restoration of overexploited groundwater areas through improving allocation of water resources, retention of storm water, protection of groundwater quality, and rehabilitating the surface water environment. The project has three outputs: 1 – groundwater recharged and conserved; 2 – surface water allocation improved and monitored; and 3 – capacity development for water resources management enhanced. Output 1 will introduce groundwater recharge technology to increase shallow groundwater recharge and reduce use of deep groundwater, and comprises two components: (i) management of channels and waterways for the recharge of shallow groundwater resources; and (ii) technological innovation for agricultural groundwater conservation. Output 2 will improve water allocation and monitoring to increase water availability in water scarce areas and reduce extraction pressure on groundwater. The output has three components: (i) surface water allocation improvement; (ii) retention of storm water runoff; and (iii) establishment of modernized digital water flow and quality monitoring in Huantai County. Output 3 has two components: (i) institutional strengthening for ADB project management procedures; and (ii) development of economic and regulatory instruments for groundwater conservation.

D. Project benefits and features

7. Improved water resources management, water security, and flood protection. The project is implementing a holistic approach by concurrently addressing surface and ground water management, specifically: (i) improved efficiency of water monitoring, water transfer, and allocation. This will streamline water use and enable water-stressed areas to be assisted without further pressure on groundwater; (ii) improved storm water retention and reservoir storage capacity. The project will increase the amount of surface water supply by 152.55 million m3 by 2020, which will account for 26.2% of total surface water supply in the five project counties by that year. Overall, the proportion of surface water contributing to total water supply in the project counties will increase from 28.4% in 2012 to 42.5% in 2020. For flood protection, two project counties, Gaomi and Changle, will expand the storage capacity of two reservoirs, Nanzai and Juchenghe. This will provide more water for agriculture and household use for downstream users, and improve the controllability of reservoir releases, especially in the dry season. Overall, the project will benefit over 4.1 million people in five counties, of which 48% are women, and 3.3% are under the PRC poverty line (

8. Improved wetland management. The project area includes a large, natural wetland, Judian, in Shouguang County. The wetland retains large reed beds yet is unmanaged, has poor water quality, and the edges are subject to incremental habitat loss. There is good potential for applied

3 management for hydrological and ecological benefits. Under the project, a bund will be constructed around the wetland to ensure it is permanently inundated, seasonal water levels will be controlled to assist water circulation and quality, low islands will be established for waterbird habitat, and controlled excavation around some of the margins will provide shallow- and deep-water habitats for flora and fauna.

9. The project is consistent with the PRC Twelfth Five-Year Plan (2011–2015), which promotes environmentally friendly and resource-efficient development, and relevant provincial and municipal development plans. The project is also consistent with ADB’s Strategy 2020, which supports innovation and inclusive growth. It is designed to remove economic constraints, address climate change abatement and environmental concerns, and promote sustainable social and economic growth, and support policy and institutional reforms. In supporting the improved management of surface and groundwater, the project will also help maintain agricultural production – and therefore livelihoods and food security – in the region.

E. Baseline environment

10. Virtually all of the project area comprises a heavily settled and modified landscape of farmland and townships, which has been subject to long-term (centuries or possibly millennia) human management. Most original vegetation has been cleared. The flow regimes of rivers are regulated by numerous dams, reservoirs, sluice gates, and culverts. Human population density is over 573 people/km2. There are no protected areas in the project area and no known records of rare, threatened, or protected flora or fauna, critical habitats, or physical cultural values. Most rivers are polluted (Grades IV–V, the lowest possible) due to agricultural non-point source pollution, wastewater, and industrial discharge. Despite this, baseline sampling in the rivers and channels to be dredged indicate that sediment quality meets the PRC standard for agricultural use, although levels of total nitrogen and phosphorus are relatively high. Environment baseline data for the project counties are described in Chapter IV.

F. Potential environmental impacts and mitigation measures

11. Construction phase. Key potential impacts are from the proposed dredging and construction of embankments. Dredging works will be conducted in the sections of 18 rivers and water channels, two reservoirs (Nanzai and Juchenghe), and a wetland (Judian). This will physically alter in-channel topography and habitats, may cause pollutants and odor to be released from the dredged sediments, cause temporary, elevated increases in sediment levels, and may result in loss of breeding habitat for fish and aquatic invertebrates. Inappropriate transport and disposal may damage roads along transport routes and cause leakage at spoil sites. Other construction risks include noise, air pollution (mainly fugitive dust), soil erosion from uncontrolled earthworks, uncontrolled solid waste disposal, interference with traffic and municipal services during pipeline construction across roads and bridges, permanent and temporary acquisition of land, involuntary resettlement, and occupational and community health and safety.

12. To minimize the impact of dredging to waterways the following measures will be applied: (i) prior to any dredging, a second round of sediment sampling will be conducted in all sites, to confirm the results of the initial sampling; (ii) in the reservoirs and river sections, an “ecological dredge method” using a specialized underwater suction cutter head will be employed. This isolates physical disturbance and minimizes sediment dispersion to within 10 m downstream, significantly reducing the risk of short-term turbidity impacts; (iii) dredging will be limited to short (<300 m) sections of channel at any one time to minimize disturbance; (iv) for dredging in small channels, temporary coffer dams will be used to divert flow; and (v) dredging will only be conducted in the dry

4 season (late September to late March), the time of lowest water depth and slowest flow, and be completed by late March, to allow at least two months for the disturbed bottom sediments to settle and stabilize before the start of the rainy season (June). To minimize impacts related to sediment transport and disposal: (i) prior to transport, the dredge spoil will be dewatered – this will reduce spoil volume by up to 70%; (ii) dredge spoil will not be stored on-site but transported to approved disposal sites immediately after dewatering, in sealed trucks to prevent leakage; and (iii) prior to disposal the dredge spoil will be tested by the county Environment Monitoring Station (EMS) to ensure compliance with PRC Standard for Pollutants in Sludge and Sediment for Agricultural Use (GB4284-84). In the event of any spoil exceeding the standards, the spoil would be categorized as a “hazardous waste” and require further assessment and specific disposal methods by a qualified center, the Shandong Provincial Hazardous Wastes Disposal Center (under the Shandong Environment Protection Department). Spoil would be disposed at specialized sites in accordance with PRC Pollution Control on the Security Landfill - Hazardous Wastes (GB 18598-2001).

13. For embankment construction, potential designs initially considered by the design institutes ranged from steeply sloping gradients with hard surfaces to shallow-sloping gradients with vegetation and porous banks to maximize soil infiltration. The project will utilize ‘green’ designs which include native plants and textured and porous surfaces.

14. The net impacts of dredging and embankment are concluded to be relatively low as: (i) almost all existing waterways are degraded and modified by long-term human activity, have low water quality (except the reservoirs), and flow is highly regulated; (ii) there are no known records of rare or threatened fauna or flora, nor any protected areas or “critical habitat” as defined by the SPS; (iii) river and channel sections upstream of the project sites support similar conditions, and it is presumed that aquatic invertebrates will recolonize the dredged sections; (iv) the habitat features to be employed in the embankment designs will provide micro-habitats for at least common and widespread amphibians, birds, small mammals, and invertebrates; (v) dredging in Judian wetland is part of several planned design and management measures developed with the assistance of an international and national wetland specialist, to create shallow- and deep-water habitats for improved hydrological and ecological management.

15. Operational phase. Key operational risks are altered hydrology and ecology within and downstream of the project construction areas, due to dredging, embankment, and the physical connection of channels, resulting in water mixing and possibly the spread of invasive species or disease vectors between river systems. These risks are considered minimal because: (i) the project river systems are located on low coastal floodplains and are in close proximity to each other, and intermittent water mixing almost certainly occurs during floods; (ii) the rivers and wetlands in the project area already suffer low water quality and flow regimes are regulated; and (iii) water balance analysis indicates the project will result in the same or increased water availability in the project area. The increased storage of surface water will be in existing reservoirs and channels and the water will be sourced from storm water. Existing seasonal flow allocations downstream of the project facilities will not be altered due to the project. Other operational risks are inadequate maintenance of project structures and facilities, which could contribute to reduced efficiency for water pumping or water flows, or over-bank flow due to accumulation of debris or litter. All project facilities will be under the management of the county Water Resource Bureaus (WRBs), accountable to the Shandong WRB. As part of Output 3, the county WRBs will develop operation and maintenance programs for the project facilities, and receive training in maintenance of the facilities and embankments.

16. Dam safety and independent panel. The project includes expansion of the storage capacity of two medium-sized reservoirs, Nanzai and Juchenghe. Construction works involve excavation

5 and lining of the reservoir bed, heightening and strengthening of the dam walls, and construction of spillways and/or water discharge tunnels. A dam safety assessment was conducted by the design institute and PPTA team, including structural integrity and existing emergency plans. PRC law and ADB’s SPS also require that project designs are reviewed by an independent expert dam panel. A panel of four national experts was convened by the SPG, which concluded that: (i) probabilities of dam failure for both reservoirs are very low (1/8,560,000); (ii) in the event of a dam failure, the width of dam-break and maximum release flows for Nanzai Reservoir would be 160 m and 4,730 m3/s respectively, and for Juchenghe Reservoir, 45 m and 1,056 m3/s respectively; and (iii) in the event of dam failure, the time for a flood peak to reach Changle Town (from Nanzai Reservoir) and the nearest settlement (from Juchenghe Reservoir) would be 1 hour and 12 hours respectively. Both teams independently concluded that the dams have well-established emergency response plans and, the project designs adequately address the need for improved structural integrity to deal with increased water volumes. During the project construction and operation phases, the panel will convene at least once a year to assess project progress and any issues. The findings of the panel will be included in the semi-annual environment reports to ADB.

17. Cumulative impacts – construction. Multiple development and construction activities are being implemented in the project counties. Together with the existing project, they may cumulatively generate larger amounts of noise and dust, traffic congestion, and disturbance to communities. The status, start dates, and specific locations of other planned construction projects over the next five years are unknown. As and when these other projects begin, and should they overlap closely with the current project, the following mitigation measures will be implemented: (i) coordination between projects to share road access and borrow and disposal sites; (ii) sharing of any associated facilities (e.g. pipelines, easements) to avoid repeated excavation of the same alignments; (iii) coordinated traffic management plans; (iv) participatory planning with local communities; and (v) training of workers to minimize social disturbance and cultural conflict.

18. Cumulative impacts – operation. The cumulative benefits of existing government initiatives for water resources, combined with the current project, are expected to include: (i) improved availability and security and surface water; (ii) substitution of groundwater for surface water, supporting the closure of groundwater wells; (iii) improved water quality of rivers and channels; (iv) improved wetland management; and (v) reduced land subsidence. There are no county-wide water balances and which might therefore quantify the effect of the project in relation to other activities. However, the Shandong Province Water Conservation Master Plan, and all county-level water plans, emphasize the efficient storage, use, and allocation of water resources. Government efforts are already resulting in the closure of groundwater wells, and by 2020 the project alone will result in a total annual increase in surface water supply of >152 million m3 across the five project counties.

G. Public Consultation and Grievance Redress Mechanism

19. Two rounds of public consultation were conducted in the project counties, with government agencies and residents. Public feedback comprised support for the project for improving water security, and concern over potential construction noise, dust, poor planning leading to repeated excavation of easements and prolonged disturbance, and odor from dredged sediments. Measures to address these concerns have been incorporated in the project design and mitigation measures (EMP; Attachment 1). Public consultation will continue during project construction and operation for early resolution of any grievances. A grievance redress mechanism (GRM) has been developed to address environmental, health, safety, and social concerns associated with the project.

H. Climate Change

20. A climate risk vulnerability assessment was conducted to identify the threat that climate change presents to project viability, assuming a design life of 30–40 years. Modeling indicates that mean annual temperatures will increase by 0.5-1.3℃ from 2010-2020 and 1.5-2.7℃ by 2050, annual precipitation will decrease 9.5-12% by 2050, variability in precipitation will increase, and storm severity may increase. Increasing flood volumes could exceed the flow capacity of embankments, channels, pipelines, and pump stations. To accommodate this, all structures will be constructed to a flood protection standard of 1 in 20-50 years, and embankments have been designed to be porous for improved infiltration. Overall, the existing project design, which is focused on water conservation and management, is strongly oriented to achieve resilience to climate impacts. Increased storm water retention and improved water monitoring and allocation will strengthen water security; channel rehabilitation will improve water flows and reduce flood risk; increased water storage in Nanzai and Juchenghe reservoirs will increase resilience to drought; a pilot component on water-smart greenhouses will demonstrate how food security can be maintained with less water; and, training will be given in water conservation and management.

I. Environmental Management Plan

21. As part of this EIA, a project environmental management plan (EMP) has been developed (Attachment 1). This describes the project requirements for environmental mitigation measures, monitoring, reporting, roles and responsibilities, budget, and the project GRM. The EMP will be the key guiding document for environmental-related issues for project construction and operation.

J. Risks and Assurances

22. The five project counties have no previous experience in ADB safeguard procedures and have low institutional capacity for environmental management. This may result in limited implementation of the project EMP and inadequate operation of the project facilities. These risks have been minimized as follows: (i) appointment of full-time environment officers in the provincial project management office and county project implementation units; (ii) the inclusion of a loan implementation environmental consultant (LIEC) in the loan consultant services; (iii) close coordination with the local environmental protection bureaus and monitoring stations to support EMP implementation; (iv) defined roles and responsibilities of all relevant agencies, including contractors and construction supervision companies; and (v) capacity building for EMP implementation. Environmental assurances (Section X) have been agreed upon and are included in the loan and project agreements.

K. Conclusion

23. It is concluded that full and effective implementation of the project EMP (Attachment 1), together with the training and project assurances, will minimize the environmental risks of the project and achieve compliance with the policy and regulatory standards applied in this EIA.

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Overview

24. The project is classified environmental ‘Category A’ under the ADB Safeguard Policy Statement (SPS 2009), requiring preparation of a project EIA. ADB’s country partnership strategy for the PRC (2011-2015) supports the PRC’s overarching strategic goal of building a well-off society by focusing on three strategic pillars of inclusive growth, environmentally sustainable development, and regional cooperation and integration. Under PRC EIA regulation, the project is classified as ‘Class I’ (equivalent to ADB Category A) and preparation of full EIA Reports is required.1 The project is consistent with the PRC 12th Five-Year Plan, Shandong development master plans, and ADB’s country partnership strategy.

25. The PRC has a wide range of laws, regulations, technical guidelines and standards that govern the way in which environmental protection and environmental impact assessment for projects must be implemented, including for pollution prevention and control on air, noise, water, ecology and solid waste, and technical guidelines on assessing atmospheric, noise, surface water, groundwater, and ecological impacts. The five DEIA Reports upon which this EIA is based were prepared in accordance with the PRC Law on Environmental Impact Assessment (2003), PRC Management Guideline on EIA Categories of Construction Projects (2008), Technical Guidelines for Environmental Impact Assessment (HJ/T2-93), Guideline on Public Participation in EIA by the PRC Ministry of Environment Protection (MEP; March 2006), and Regulation for Public Disclosure of EIAs issued by the National Development and Reform Commission (NDRC) in 2012.

B. PRC Environmental Laws, Regulations, Guidelines, and Standards

26. The primary national laws and regulations that govern EIA are in Table II-1 and Table II-2 respectively. Table II-3 shows the relevant local laws and regulations.

Table II-1: Relevant National Laws and Year Issued Law Year Relevance to project Environmental Protection Law (revised) 2014 Urban and Rural Planning Law 2008 Project involves urban master plans Solid Waste Pollution Prevention and Control 2005 Disposal of solid waste, dredge spoil Environmental Impact Assessment Law 2003 Water Law 2002 Water diversion, channel improvement Cleaner Production Promotion Law 2002 Efficient pump stations, water diversion Air Pollution Prevention and Control Law 2000 Air pollution during construction Noise Pollution Prevention and Control Law 1999 Noise impact during construction Land Administration Law 1999 Project involves land acquisition Forest Law 1998 Reforestation, re-vegetation, landscaping Water and Soil Conservation Law 1991 Project involves soil erosion control Water Pollution Prevention and Control Law 2008 Sewer collection pipeline component Flood Control Law 1998 River rehabilitation and flood control River Administration Law 1988 Project includes river regulation

1 The PRC’s Directory for the Management of Different Categories of Project Environmental Impact Assessment classifies EIAs into three categories with different reporting requirements: (i) Full EIA Report – for projects with potentially significant environmental impacts; (ii) Tabular Environmental Impact Assessment (TEIA) – for projects with less significant impacts; (iii) EIA Registration Form – for projects with the least environmental impacts.

Table II-2: National Administrative Regulations and Year of Effectiveness Regulation Year Relevance to project Pollution Control for Drinking Water Protection Zone 1989 Water diversion for water supply EIA of Plans and Programs 2009 Urban master plans Environmental Protection for Construction Projects 2003 Strengthening Wetland Protection and Management 2004 Judian wetland project component Environmental Protection Rules for Construction 1998 Protection of Wild Flora 1997 Requirements for EIA Summary of Construction Project 2010 Classification of Construction Project Environmental 2001 Protection Management (MEP) National Biodiversity Strategy and Action Plan (2011-2030) 2010 Judian wetland Social Risk Assessment of Large Investment Projects 2012 Public disclosure of EIAs (NDRC) 2012 Public consultation Regulations for Road Transport of Dangerous Goods 2010 Spillage of dredged sediments

Table II-3 : Shandong Province Laws and Regulations and Year Issued Law and Regulation Year Environmental Protection Regulations of Shandong Province Dec. 2001 Construction Project Quality Management Regulation of Shandong Province Feb. 2008 Water Pollution Control Regulation of Shandong Province Dec. 2001 Ambient Air Pollution Control Regulation of Shandong Province July 2003 Solid Wastes Management Regulation of Shandong Province June 2003 Wild Flora Protection Regulations of Shandong Province Dec. 2006 Regulation on Soil Erosion Control in Shandong Province (revised edition) Oct. 2000 Regulations on Wild Animals Protection of Shandong Province (revised edition) 2004 Water Function Zoning in Shandong Province Dec. 2004 Environmental and Ecological Function Zoning in Shandong Province July 2005 Regulations on Water and Soil Conservation Law in Shandong Province 2000 Regulation on Public Consultation for Constructions in Shandong Province 2012

27. Implementation of PRC laws and regulations is supported by associated management and technical guidelines. Those applicable to the project are summarized in Table II-4.

Table II-4: Applicable Environmental Guidelines Guideline Year/Code Technical Guideline on EIA: Surface Water Protection 2006 List of Construction Projects Subject to Environmental Protection Supervision 2008 Guideline on EIA Classification of Construction Projects 2008 Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects 2009 Interim Guideline on Public Consultation for EIA 2006 Circular on Strengthening EIA Management to Prevent Environmental Risks 2005 Technical Guideline on EIA: Surface Water Environment HJ/T 2.3-1993 Technical Guideline on Environmental Risk Assessment for Construction Project HJ/T169-2004 Technical Guideline on EIA: Acoustic Environment HJ 2.4-2009 Technical Guideline on EIA: Atmospheric Environment HJ 2.2-2008 Technical Guideline on EIA: Ecological Assessment HJ 19-2011 Technical Specification for Water and Soil Erosion Control FOR Construction GB50434-2008

28. The national environmental quality standard system that supports and evaluates the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function, i.e. pollutant emission/discharge standards and ambient environmental standards. The relevant standards applicable to the proposed project are shown in Table II-5.

Table II-5: Applicable Environmental Standards Standard Code Standard for Flood Control GB50210-94 Urban Ambient Acoustic Quality Standard GB3096-2008 Noise Limit of Industrial Enterprises GB12348-2008 Noise Limit for Social Activities GB22337-2008 Domestic Drinking Water Quality Standard GB5749-2006 Surface Water Quality Standard GB3838-2002 Standard on Pollutant Discharges from Municipal Wastewater Treatment Plants GB18018-2002 Ambient Air Quality Standard GB3095-1996 Integrated Emission Standard of Air Pollutants GB16297-1996 Integrated Wastewater Discharge Standard GB8978-1996 Soil Quality Standard GB15618-1995 Groundwater Quality Standard GB/T14848-1993 Noise Limit for Construction Sites GB12523-1990 Control Standards for Pollutants in Sludge for Agricultural Use GB4284-1984 Pollution Control Standard for MSW Landfills GB16889-2008 PRC Specification of Domestic MSW Sanitation Landfill CJJ17-2004

C. International Agreements

29. The PRC is signatory to major international agreements dealing with biodiversity, wetland protection, and climate change. Relevant agreements are listed in Table II-6.

Table II-6: Applicable International Agreements Agreement Year Purpose (relevance to project) Ramsar Wetland Convention 1975 Promote ‘wise use’ of wetlands Convention on Biological Diversity 1993 Judian wetland ecology UN Framework Convention on Climate Change 1994 Energy-efficient water pumps Kyoto Protocol to UN Framework Convention on Climate Change 2005 Further reduce GHGs (as above) Montreal Protocol on Substances That Deplete the Ozone Layer 1989 Protect ozone layer (as above) UN Convention to Combat Desertification in Countries Experiencing Fight desertification and mitigate 1996 Serious Drought and/or Desertification effects of drought

D. Applicable ADB Policies and World Bank’s EHS

30. ADB’s SPS (2009) provides the basis for this EIA. All projects funded by ADB must comply with the SPS. The purpose of the SPS is to ensure that projects are environmentally sound, designed to operate in line with applicable regulatory requirements, and are not likely to cause significant environment, health, or safety hazards. The SPS also promotes the use of international standards, including the World Bank Group’s Environmental, Health and Safety (EHS) Guidelines.2 EHS guidelines relevant to the project include energy and water conservation, hazardous materials, waste management, noise control, sanitation, and community and occupational health and safety.

31. Compared with the PRC EIA requirements, the SPS has additional requirements, including: (i) a project grievance redress mechanism (GRM); (ii) definition of the project area of influence; (iii) assessment of indirect, induced and cumulative impacts; (iv) due diligence of associated facilities; (v) protection of physical cultural resources; (vi) climate change mitigation and adaptation; (vii) occupational and community health and safety; (viii) impacts on livelihoods through environmental

2 World Bank Group. 2007. Environmental, Health, and Safety Guidelines. Washington, USA. http://www.ifc.org/ifcext/enviro.nsf/Content/EnvironmentalGuidelines

10 media; (ix) biodiversity conservation; and (x) a project-specific EMP. The project EIA complies with SPS requirements.

E. Assessment Standards for Proposed Project Components

a. Drinking Water Quality

32. The project includes water diversion components in Changle, Qingzhou, and Gaomi. Water to be supplied to residents must comply with PRC Drinking Water Quality Standard (GB5749-2006), in which 106 parameters and disinfectant guidelines must be met (Tables II-7 and II-8).

Table II-7: Drinking Water Quality Standards (GB5749-2006) Parameter Standard Routine Parameter of Drinking Water Quality Microbiological parameter3 Total coliform (MPN/100ml or CFU/100ml) LD Thermotoletant coliform (MPN/100ml or CFU/100ml) LD Escherichia Coli (MPN/100ml or CFU/100ml) Total plant count (CFU/ml) 100 Toxicological parameter Arsenic (As, mg/L) 0.01 Cadmium (Cd, mg/L) 0.005 Chromium Hexavalent (Cr 6+, mg/L) 0.05 Lead (Pb, mg/L) 0.01 Mercury (Hg, mg/L) 0.001 Selenium (Se, mg/L) 0.01 Cyanide (CN-, mg/L) 0.05 Fluoride (mg/L) 1.0 Nitrate (mg/L) 10 Trichloromethane (mg/L) 0.06 Carbon tetrachloride (mg/L) 0.002 Bromate (when O3 is applied) (mg/L) 0.01 Formaldehyde (when O3 is applied) (mg/L) 0.9 Chlorite (when ClO2 is applied) (mg/L) 0.7 Chlorate (when compound chlorine dioxide is applied ) (mg/L) 0.7 Sensory Properties and General Chemical Parameter Chromaticity (Unit of platinum cobalt color) 15 Turbidity (diffusing turbidity unit) NTU 1 Odor and Taste No odor, no taste Appearance None pH 6.5≤X<8.5 Aluminum (Al, mg/L) 0.2 Iron (Fe, mg/L) 0.3 Manganese (Mn, mg/L) 0.1 Copper (Cu, mg/L) 1.0 Zinc (Zn, mg/L) 1.0 Chloride (Cl-, mg/L) 250 Sulfate (SO4-mg/L) 250 TDS (mg/L) 1000 Total Hardness (CaCO3) (mg/L) 450 CODMn (mg/L) 3 Volatile phenols (phenol) (mg/L) 0.002 LAS (mg/L) 0.3 Radioactivity Parameter4

3 MPN= Most Probable Number; CFU: Colony forming unit. 4 Radionuclide phase analysis is conducted if radioactivity value exceeds limits, to determine if the water is drinkable.

Parameter Standard Total α radioactivity (Bq/L) 0.5 Total β radioactivity (Bq/L) 1 Non-Routine Parameter Microbial indicators Giardia cysts (count/10L) <1 Cryptosporidium oocysts (count/10L) <1 Toxicological parameter (mg/L) Antimonium (Sb, mg/L) 0.005 Barium (Ba, mg/L 0.7 Beryllium (Be, mg/L) 0.002 Boron (B, mg/L) 0.5 Molybdenum (Mo, mg/L) 0.07 Nickel (Ni, mg/L) 0.02 Silver (Ag, mg/L) 0.05 Thallium (Ti, mg/L) 0.0001 Cyan chloride (CN- mg/L) 0.07 Chlorodibromomethane (mg/L) 0.1 Bromodichloromethane (mg/L) 0.06 Dichloroacetic acid (mg/L) 0.05 1,2-dichloroethane (mg/L) 0.03 Dichloromethane (mg/L) 0.02 THMs 1 1,1,1 - trichloroethane (mg/L) 2 Trichloroacetic acid (mg/L) 0.1 Trichloroaldehyde (mg/L) 0.01 2,4,6- trichlorophenol (mg/L) 0.2 Bromoform (mg/L) 0.1 Heptachlor (mg/L) 0.0004 Malathion (mg/L) 0.25 PCP (mg/L) 0.009 HCH (total amount, mg/L) 0.005 Hexachlorobenzene (mg/L) 0.001 Dimethoate (mg/L) 0.08 Parathion (mg/L) 0.003 Bentazone (mg/L) 0.3 Parathion-methyl (mg/L) 0.02 Chlorothalonil (mg/L) 0.01 Carbofuran (mg/L) 0.007 Lindane (mg/L) 0.002 Chlopyrifos (mg/L) 0.03 Glyphosate (mg/L) 0.7 DDVP (mg/L) 0.001 Arazine (mg/L) 0.002 Deltamethrin (mg/L) 0.02 2, 4 - dichlorobenzene oxygen ethanoic acid (mg/L) 0.03 Dichloro-diphenyl-dichlorothane (mg/L) 0.001 Ethylbenzene (mg/L) 0.3 Dimethylbenzene (mg/L) 0.5 1,1- dichloroethylene(mg/L) 0.03 1,2- dichloroethylene(mg/L) 0.05 1,2- dichlorobenzene(mg/L) 1 1,4- dichlorobenzene(mg/L) 0.3 Trichloroethylene(mg/L) 0.07 Trichlorobenzene(mg/L) 0.02 Hexachlorobutadiene(mg/L) 0.0006 Acrylamide (mg/L) 0.0005 Tetrachloroethylene (mg/L) 0.04 Toluene (mg/L) 0.7

Parameter Standard DEHP (mg/L) 0.008 ECH (mg/L) 0.0004 Benzene (mg/L) 0.01 Styrene (mg/L) 0.02 Benzopyrene (mg/L) 0.00001 Chloroethylene(mg/L) 0.005 Chlorobenzene(mg/L) 0.3 Microcystin-LR(mg/L) 0.001 Physical Properties and General Chemical parameters (mg/L) Ammonia Nitrogen(NH3-N, mg/L) 0.5 Sulfide (S, mg/L) 0.02 Sodium (Na, mg/L) 200

Table II-8 : General Parameters and Requirements for Drinking Water Disinfectant Exposure duration Limit in water Residue in water Residues in network Disinfectant with Water supplied (mg/L) supplied (mg/L) end (mg/L) Chlorine and free ≥30 min 4 ≥0.3 ≥0.05 chlorine (mg/L) Monochloramine (total ≥120 min 3 ≥0.5 ≥0.05 chlorine, mg/L) 0.02/ ≥0.05 if chlorine is Ozone (O3, mg/L) ≥12 min 0.3 - added Chlorine Dioxide (ClO2, ≥30 min 0.8 ≥0.1 ≥0.02 mg/L)

b. Air Quality

33. Assessment of air quality was in accordance with Grade II of PRC Ambient Air Quality Standard GB3095-1996 and GB3039-2012 (the latter will take effect in January 2016) and World Bank EHS guidelines (Table II-9).

Table II-9 : Ambient Air Quality Grade II Standard (mg/m3). Pollutant Time GB 3096-1996 (Grade II) GB3095-2012 (Grad II) EHS Annual average 0.06 0.06 n/a 0.125-0.05 (0.02 SO Daily average 0.15 0.15 2 guideline) Hourly average 0.50 0.50 n/a Annual average - 0.035 0.035 PM2.5 Daily average - 0.075 0.075 0.07-0.03 (0.02 Annual average 0.10 0.07 guideline) PM10 0.075-0.15 (0.05 Daily average 0.15 0.15 guideline) Annual average 0.08 0.04 0.04 guideline

NO2 Daily average 0.12 0.08 n/a Hourly average 0.24 0.2 0.20 guideline Daily average 4.0 4.0 n/a CO Hourly average 10.0 10.0 n/a

c. Noise Levels During Project Operation

34. In accordance with the PRC Acoustic Environmental Quality Standard (GB3096-2008), the

13 noise output of new water infrastructure (e.g. dam pump stations) must comply with Class II. Sensitive areas such as villages, residential communities, schools, and other noise sensitive spots are evaluated in accordance with Grade II standards according to the environmental function zoning identified by the local EPBs (Table II-10).

Table II-10: Acoustic Quality Standards (dB (A)) PRC World Bank Group EHS Standard Category Day Night Day Night I 55 45 n/a n/a II 60 50 55 45

d. Noise Levels During Project Construction

35. Construction activities must comply with PRC Noise Limits for Construction Site standard (GB12523-90) (Table II-11).

Table II- 11: Noise Limits for Construction Sites Standard (dB(A)) Noise limits Daytime Night 70 55

e. Surface Water Quality

36. The applicable standards for the proposed project components are PRC Surface Water Environment Quality Standard (GB3838-2002) – Grades III, IV and V respectively (Table II-12).

Table II-12: Surface Water Quality Standards (mg/L, pH excluded)

Parameter pH CODMn BOD5 CODcr TP TN NH3-N Petroleum Grade II Standard 6~9 ≤4 ≤3 ≤15 ≤0.1 ≤0.5 ≤0.5 ≤0.05 Grade III Standard 6~9 ≤6 ≤4 ≤20 ≤0.2 ≤1.0 ≤1.0 ≤0.05 Grade IV Standard 6~9 ≤10 ≤6 ≤30 ≤0.3 ≤1.5 ≤1.5 ≤0.5 Grade V standard 6~9 ≤15 ≤6 ≤40 ≤0.4 ≤2.0 ≤2.0 ≤1.0

Key: BOD5= 5 days biochemical oxygen demand, CODcr = chemical oxygen demand, CODMn = permanganate index, NH3-N=ammonia nitrogen; TN = total nitrogen; TP = Total Phosphorus.

f. Wastewater Discharge

37. Wastewater discharged from construction sites must comply with PRC Integrated Wastewater Discharge Standard” (GB8978-1996) (Table II-13).

Table II-13: Integrated Wastewater Discharge Standards (mg/L, pH excluded) Parameter pH CODCr BOD5 SS NH3-N Petroleum Grade II Standard 6–9 150 30 150 25 10

g. Construction Emissions

38. Asphalt smoke during road re-pavement after pipeline works will be in accordance with Grade II of PRC Integrated Emission Standard of Air Pollutants (GB16297-1996) (Table II-14).

Table II-14: Integrated Emission Standard for Air Pollutants (mg/m3) Pollutant Maximum allowable Emission Fugitive emission limits at monitoring points Particles —— 1.0 Asphalt Smoke 40-75 0

39. The PRC Government has a comprehensive program for the control and reduction of vehicle emissions.5 This includes: (i) improvement and stricter enforcement of national emission standards for new vehicles; (ii) improvement of conventional fuels to make them cleaner with less GHG emissions; (iii) use of alternative or cleaner fuels; (iv) improved maintenance and inspection of vehicles; and (v) encouragement for the scrapping of older high emission vehicles.

h. Construction-induced Vibration

40. Construction activities will cause vibration impact, and must comply with PRC Standard for Urban Area Environmental Vibration (GB10070–88) (Table II-15).

Table II-15: Vertical (Z) Vibration Standard Value for Various Urban Areas (Unit: dB) Scope of applicable area Day Night Special residential area 65 65 Residential, cultural and educational area 70 67 Mixed area and commercial center 75 72 Industrial centralized area 75 72 Both sides of traffic trunk line 75 72 Both sides of railway main line 80 80

F. Environmental Management Framework and EIA Approval Process

41. In the PRC, the enforcement of environmental laws and regulations rests with the environmental protection authorities in each level of government. At the national level, the Ministry for Environmental Protection (MEP) is the regulatory authority. It is represented at the provincial level by an environmental protection department (EPD). The environmental management authorities at the city and county levels are the environmental protection bureaus (EPBs). The EPBs are supported by their environmental monitoring stations (EMSs) and environmental science research institutes. MEP’s Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects (2003) provides two prescribed lists of projects for which EIAs must be reviewed and approved. The guideline was amended in 2009 to include a list of construction projects for which DEIAs require MEP approval, and a list of projects for which EIAs will be delegated to the provincial EPD. For this project, the Shandong Province EPD is responsible for review and approval of the DEIAs.

42. All project counties have an EMS, responsible for monitoring of ambient environmental quality and compliance monitoring of pollution sources. Each EMS will conduct compliance monitoring for the project sites semi-annually for the five years of project implementation.

43. The five DEIAs were prepared by an EIA institute holding a national Grade A certificate in accordance with the Management Guideline on Qualification of EIA Institutes (MEP Ministerial Order No. 26, 2005). All DEIAs have been completed. One (Changle component) was approved on 6 June 2014 (approval number EN-2014-63; Shandong EPD). The other four DEIAs were approved in May 2015.

5 PRC Air Pollution Control Action Plan (2013). Ministry of Environment Protection.

III. DESCRIPTION OF THE PROJECT

A. Rationale

44. The municipalities of Weifang and Zibo are subject to severe scarcity of surface water (water per capita is about one-sixth of the PRC average) and depend heavily on groundwater. The Weifang-Zibo area is the second largest over-exploited aquifer in the PRC, extending over 5,422 km2. Thousands of groundwater wells of varying sizes (most constructed by residents and only several meters deep) occur in the region, and groundwater tables have dropped to critical levels in many areas. Average annual precipitation in the project area is around 600 mm, but most rainfall (70%) occurs from June to September, typically followed by a dry period lasting eight months. Natural recharge of groundwater is insufficient to recover from the excessive pumping during the dry season. Flooding occurs in the summer and storm water is an important water resource, yet most flows to the sea without utilization. The project area is part of the Northern China Plain (NCP), a main vegetable production base supplying food for Beijing and Tianjin. As well as climate-related limitations, over-extraction of groundwater occurs due to the absence of licensing and permitting systems in agriculture (the largest user), a lack of pricing of the water resource, insufficient abstraction metering and groundwater level monitoring, and limited sharing of information.

45. As a result of these issues, agricultural production in parts of Shandong Province has declined or stopped due to lack of water. Pumping costs have increased, groundwater quality is deteriorating due to seawater intrusion and pollution, and financial and economic damage is occurring due to land subsidence. In some areas, seawater intrusion extends up to 35 km inland and land subsidence of over 2 m has occurred. Land subsidence is irreversible and urgent action is needed to avoid worsening. Domestic and industrial water demands, although still less than agricultural water use, are increasing due to rapid economic development and urbanization.

46. The SPG is already undertaking multiple initiatives to address some of these issues, including the implementation of digital monitoring systems for security and water allocation for some key reservoirs and their associated channels, reuse of treated wastewater, regulations on groundwater pumping, and the phasing out of unregistered industrial wells. Despite these efforts, groundwater decline and land subsidence continues in the Weifang-Zibo Aquifer. In recognition of these concerns, the PRC government has selected Shandong Province as a demonstration province for modernized water administration. The project will serve as a demonstration of different approaches for environmental restoration of overexploited groundwater areas through improving the management, transfer, and allocation of surface water, storm water retention, groundwater protection, and greenhouse water efficiency.

47. The goal of the project is to contribute to the reduction of groundwater over-exploitation in the Weifang-Zibo aquifer and serve as an example project for other groundwater stressed regions. The project will improve retention of storm water runoff in the southern project areas, for transfer to the northern areas where there is most groundwater over-extraction. This is expected to promote substitution for surface water resources and recharge the aquifer systems. The project is expected to facilitate the sustainable utilization of water resources by optimizing water resource allocation schemes, retention of rain and flood waters, and development of water management information system (MIS).

48. The project is consistent with the PRC Twelfth Five-Year Plan (2011–2015), which promotes environmentally friendly and energy/resource-efficient development, and provincial development plans. It is also consistent with ADB’s Strategy 2020, which supports innovation, and inclusive growth. It is designed to remove economic constraints, address climate change abatement and

environmental concerns, and promote sustainable economic growth, and support policy and institutional reforms.

B. Impact, Outcome and Outputs

49. The expected project impact is groundwater supply for the agricultural sector in the Weifang-Zibo area sustained. The expected outcome of the project is conservation and sustainable use of groundwater resources in Weifang-Zibo area improved. The project is also intended to serve as a demonstration for environmental rehabilitation of over-exploited groundwater areas in the PRC, through water allocation optimization, rainwater retention, and groundwater protection. The project has three outputs: (i) groundwater recharged and conserved, (ii) surface water allocation improved and monitored, and (iii) capacity development for water resources management enhanced. The project will be implemented in five counties, Qingzhou, Changle, Shouguang, Gaomi, and Huantai, all intensive agricultural production bases and which suffer groundwater over-exploitation.

50. Output 1 – groundwater recharged and conserved. This will support the introduction of groundwater recharge technologies in the project areas to increase shallow groundwater recharge and reduce usage of deep groundwater. Output 1 has two sub-components (Table III-1): (i) rehabilitation and construction of about 800 hectares of wetland areas, including the canals which will contribute to the recharge of shallow groundwater resources,6 and (ii) technological innovation for monitoring shallow groundwater recharge in Huantai County. Under component 1(i), two wetland areas will be rehabilitated in Huantai County and Shouguang City to improve the reservoir and ecological functions of the wetlands, and at the same time increase shallow groundwater recharge through the canal network. These wetlands currently suffer from water shortages and are not operational. Component 1(ii) includes the development of a comprehensive MIS for water resources monitoring and management in Huantai County, including monitoring and dissemination of groundwater information. The MIS will be developed to complement an existing management system for urban water supply only. The system will be expanded to include: monitoring of water resources, data analysis, optimizing the allocation of water resources, water regime forecasting, and decision-making support for flood control.

Table III-1: Summary of Output 1. Output 1 - Groundwater Conserved Description of Component and Subcomponent Component 1.1 Wetland storage and water management a) Embankment around wetland: 11 km long x 2.5 m high. Water storage capacity will increase to 10.47 million m3. b) Improved flow regulation: (i) construct in-take channels; (ii) develop deep water zone (309 ha) in center of wetland; (iii) 1.1.1. Judian wetland (Shouguang) develop channels through reed beds (448 ha) in northern portion of wetland; c) Constructed treatment wetland (130 ha) developed in southern portion of wetland with large ponds with through-flow. d) Re-vegetation with native aquatic plants. Mata drainage channels a) Dredging, embankment. Storage capacity + annual utilizable 1.1.2 3 (Huantai) water will increase to 9.0 and 18 million m respectively Component 1.2 Technological innovation for recharge and water saving Management Information a) Six monitor systems 1.2.1 System (Huantai) b) Five business application systems

6 The wetlands to be rehabilitated or constructed are all modified habitats, but may have important ecological values.

Output 1 - Groundwater Conserved Description of Component and Subcomponent

1.2.2 E-card System (Huantai) a) Card-Operated Controlled System 1.2.3 Water-smart greenhouses a) Rain Water Harvesting from Smart Greenhouse pilot (10 ha) 1.3 Development and implementation of innovative methods Water Resources Optimization a) Develop a trial regional market for water right trading and 1.3.1 (Qingzhou, Shouguang, administration in the project area Huantai)

51. Under Output 1.1.1, a total of about 763 ha will be re-vegetated, comprising about 336 ha terrestrial vegetation and 428 ha aquatic vegetation (Table III-2).

Table III-2 : Project re-vegetation (Output 1.1.1). Increased Plant Gaomi Shouguang Qingzhou Changle Huantai Total Grassland (ha) 0.16 10.0 13.1 4.3 127.17 154.73 111,770 37,600 in 25,790 in 2,880 in 45,500 in Trees (no. / ha) 0 7 trees in 20.89 ha 14.33 ha 1.6 ha 25.28 ha 62.09 ha 303,700 216,000 in 16,500 in 1,200 in 70,000 in Bushes (no. / ha) 0 8 bushes in 84.7 ha 6.47 ha 0.47 ha 27.45 ha 119.1 ha Aquatic plants (ha)–Judian 0 418 9.73 0 0 427.73 Total (ha) 0.16 533.59 43.63 6.37 179.9 ~763.6 ha

52. Under 1.2.1, the MIS will develop a water resources monitoring system for the entire county. It will be based on the existing water supply automatic management platform. The MIS will include the following functions: (i) monitoring of water resources; (ii) data analysis; (iii) optimized allocation of water resources; (iv) water regime forecast; and (v) decision-making supporting on flood control.

53. Under 1.2.2, the e-card system for Huantai will regulate water use for agriculture and rural domestic use. It will be implemented in one pilot location. The following will be developed and implemented: e-card operated wells, central data units and water quota trading systems, registration of users and water user associations, quotas, water price determination; and penalties for exceeded quota use.

54. Under 1.2.3, experimental rain water harvesting system on smart greenhouses will consist of (i) roof top water collection and conveyance systems; (ii) storage facilities; groundwater recharge and pumping systems; and (iii) monitoring arrangements.

55. Component 1.3 - Development of innovative water management practices. A trial regional market for water rights trading in the project area will be piloted. This will include a policy study on water quota determination, water rights and trading, water tariff reform, water resources allocation, law enforcement, with an emphasis on agricultural water use and savings.

56. Output 2 – surface water allocation improved and monitored. This will improve water allocation and monitoring to increase water availability in water scarce parts of the project area and indirectly reduce the pressure on groundwater resources. The output will have three sub-components (Table III-3): (2.1) surface water allocation improvement; (2.2) stormwater

7 The average tree planting density in Shandong Province is 1,800 trees/ha (Shandong Forestry Department 2010). 8 The average bush planting density in Shandong Province is 2,550 bushes/ha (Shandong Forestry Department 2010).

retention; and (2.3) establishment of water flow and quality monitoring in Changle County, including disclosure and dissemination of groundwater information. Component 2.1 will support three counties, Qingzhou, Gaomi and Huantai, to improve the condition and flow capacity of river channels and drainage systems, and construct or expand connections between channel networks and reservoirs. Component 2.2 will support Changle and Gaomi counties to increase reservoir capacity for improved storage of surface water. In Changle, the storage capacity of Nanzai reservoir will be increased from 4.27 to 10.36 million m3. Component 2.3 will support Changle to expand its water monitoring system for surface and ground water. A total of about 9.26 million m3 sediment will be removed from Judian wetland (6.37 million m3) and Mata drainage channels (2.89 million m3) (Table V-6).

Table III-3: Summary of Output 2. Output 2 - Surface Water Allocation Description of Components and Subcomponents Improved and Monitored Component 2.1 Surface Water Allocation Improvement a) 24.68 km channel comprising repair of 11.49 km existing channel and construction of 13.2 km new pipeline; River diversion works from 2.1.1 Renhe Reservoir to Heihushan b) Laying 20.6 km pipelines comprising repair of 17.4 km existing and Qiyi reservoirs (Qingzhou) pipeline and 3.2 km new pipeline (DN1200 mm). Total annual water supply capacity will be 11.21 million, and 10.95 million m3 groundwater savings will be achieved. Connection of Qiyi Reservoir to a) Construct 2.68 km water transmission culvert (DN800 mm) from 2.1.2 Yaowanghu Reservoir Yaowanghu Reservoir to Beiyang River (the water transmission (Qingzhou) capacity will be 1.0m3/s). a) 10.95 km dredging and embankment with Gabion stone Beiyang River Improvement 2.1.3 (including Xiazhuang and Zhaozhuang Reservoirs); (Qingzhou) b) Construct 12 river gates (1.5 m high x 30-40 m wide).

Irrigation Channels works for a) Convert 3.5 km open channel to closed channel; water diversion from Mi River b) Repair 10 km U-type channel; 2.1.4 to Bagouzi Reservoir c) Construct of 44 culverts and 2 sluice gates; (Qingzhou) d) Replace a 400 m pipe in a horticultural park. a) 55.3 km embankment + 31.9 km dredging on 6 rivers (Yishouxin, Tahe, Zhinv, New Zhinv, Yang, Wuyang) (Fig. III-1, III-2). a) Dredging, embankment – Yishou New River and Tahe River. River improvement 2.1.5 (Shouguang) b) Dredging, embankment – Zhinv, New Zhinv, Yang, Wuyang. c) Construct 14 flow regulation structures along Tahe River: 1 pump station (flow capacity 1,000 m3/h), 2 culvert gates, 5 box culverts, 6 pipe culverts. a) Construct diversion channels for Yellow River Diversion to Water diversion works Chengbei Reservoir: north section (11.51 km) and south section 2.1.6 3 (Huantai) (16.84 km). The designed flow is 10m /s. The flood control standard is 1 in 5 years b) Dredging and connection of urban channels (Wu River, 2.1.7 River improvement (Huantai) Dongzhulong River, Dazai Channel, Laonao River) 2.1.8 River infrastructure (Huantai) c) Construct 19 structures (11 gates, 1 siphon, 7 bridges). a) Connect Wangwu and Juchenghe Reservoirs: a) upgrade 2.3 km 2.1.9 South route: Water works to water transmission pipe (DN2000 mm) from Wangwu Reservoir to connect Wangwu Reservoir, Daxin Village; b) dredge and embank 5.9 km west main channel

Output 2 - Surface Water Allocation Description of Components and Subcomponents Improved and Monitored Juchenghe Reservoir and with a design flow of 4.0 m3/s. (Figure III-3, 4). Chengnan Reservoir (Gaomi) b) Juchenghe Reservoir Expansion: (i) construct 2.3 km lake road and 3 bridges; (ii) 2.7 million m3 sediment dredging to increase storage capacity from 3.06 million m3 to 4.7 million m3; (iii) 1 pump station (flow capacity 720 m3/h). c) Water transmission to Chengnan Reservoir from the Reservoirs of Wangwu and Juchenghe: (i) 1.5 km (DN500 mm), with the design capacity of 15000 m3/d); (ii) upgrade 2.9 km water supply pipe with the water supply capacity of 45000 m3/d. Component 2.2 Storm Water Retention a) Construct: (i) 150 m auxiliary dam with elevation 117.2 m above sea level (height raised by 1.7 m, from 115.5 to 117.2 m) and width 5.0 m (flood control standard 1/50 years after completion); Expansion of Nanzai Reservoir (ii) expand reservoir capacity from 4.25 million m3 to 10.36 million 2.2.1 3 3 (Changle) m ; (iii) construct spillway with release capacity of 358.26 m /s; (iv) lining work for leakage protection; (v) construct water discharge tunnel and pathway and rubber dam; and (vi) 1 pump station (flow capacity 1,020 m3/h). (Figures III-3 and III-4). Water diversion pipeline from a) Laying 23.5 km pipeline (DN 1400 mm), with design flow of 1.16 2.2.2 Xiashan Reservoir to m3/s by gravity flow, and annual water diversion capacity is 33.44 Chengbei Reservoir (Gaomi) million m3 (Figures III-5 and III-6) Component 2.3 Water Flow and Quality Monitoring a) Groundwater monitoring center for ground subsidence area. Groundwater monitor project Information will be uploaded to monitoring center through wireless 2.3.1 (Qingzhou) network and cable. Monitoring parameters will include water level, temperature, conductivity (Figures III-7 and III-8). 2.3.2 Hydrological Station (Changle) a) Monitoring System for Rainfall and Rivers Groundwater monitoring a) The monitoring systems; (Figure III-5, 6) 2.3.3 (Huantai) b) Business application systems

Figure III-1: Typical Cross Section of Proposed Rivers/Channels (Urban Sections).

Figure III-2: Typical Cross Section of Proposed Rivers/Channels (Countryside Section).

Figure III-3: Current Situation of Nanzai Reservoir – Changle.

Designed Auxiliary Dam

Figure III-4: Designed Auxiliary Dam of Nanzai Reservoir – Changle.

Figure III-5: Layout of Xiashan Reservoir and Chengbei Reservoir – Gaomi.

Figure III-6: Layout of Water Diversion Pipeline to the Water Supply Plants – Gaomi.

Figure III-7: Automatic Data Collection and Transmission System for Groundwater – Huantai.

Figure III-8: Automatic Water Geological Monitoring System – Huantai/Qingzhou.

57. Output 3 – capacity development for water resources management enhanced. Output 3 has two sub-components: (i) institutional strengthening on ADB’s project management procedures, and (ii) project management. Component 3(i) will support capacity development and training of the SPG and counties staff in ADB project management procedures, technical design and implementation, and safeguard supervision and monitoring. Component 3(i) will also provide training on groundwater policy and new approaches and/or techniques in water management, including wetland management, water saving technologies for agricultural sector such as smart greenhouses, and establishing groundwater trading system through pilot water user associations.

58. The major physical project facilities to be constructed are summarized in Table III-4.

Table III-4: Summary of Proposed Project Facilities Item Shouguang Qingzhou Changle Gaomi Huantai Total Reservoirs to be expanded 0 0 1 1 0 2 Wetlands to be managed 1 0 0 0 0 1 Rivers to dredged and embanked 6 2 0 0 10 18 Length of river sections and 31.9* 10.95 0 0 157.74 200.59 channels to be dredged (km) Length of river / channel 55.3* 21.90 0 0 315.48 392.68 embankment (km) Length of pipelines and culverts for 0 51.46 0 36.1 0 87.56 water diversion (km) *For Shouguang County, embankment length is not double the dredging length as some existing embankments do not require upgrading.

C. Associated Facilities

59. Associated facilities are those which are not funded by the project but whose viability and

24 existence depend exclusively on the project and whose goods or services are essential for successful operation of the project (SPS 2009). For this project, associated facilities comprise: nine existing reservoirs in Gaomi (4) and Qingzhou (5); 15 existing water supply plants (WSPs) in Gaomi (5), Shouguang (8), and Huantai (2); and 11 existing wastewater treatment plants (WWTPs) in Gaomi (3), Shouguang (4), Qingzhou (3) and Huantai (1).

60. Reservoirs. The reservoirs in Gaomi are Xiashan, Wangwu, Juchenghe and Chengnan. Xiashan is the largest reservoir in Shandong Province and is located on the Wei River. It was built in 1960 for flood control, irrigation, hydropower generation and fish farming. The reservoirs in Qingzhou are Renhe, Heihushan, Qiyi, Longhu and Bagouzi (Table III-5).

Table III-5: Summary of Associated Reservoirs. County Items Unit Quantity Xiashan Reservoir 3 Total storage capacity of the reservoir m 1.405 billion Utilizable capacity of the reservoir m3 503 million Height of the dam m 44 Length of the dam m 2,680 Type of the dam Homogeneous earth dam Total area of irrigation ha 102,000 Flood control standard 1-in-100 years Wangwu Reservoir Total storage capacity of the reservoir m3 67.04 million Utilizable capacity of the reservoir m3 26.58 million Total area of irrigation ha 4,333 Flood control standard 1-in-50 years Gaomi 3 Capacity for urban water supply m /a 10 million Length of water supply pipeline km 20 (DN1000 mm PE) Juchenghe Reservoir Total storage capacity of the reservoir m3 3.06 million Utilizable capacity of the reservoir m3 2.54 million Total area of irrigation ha 2700 Flood control standard 1-in-50 years Chengnan Reservoir Total storage capacity of the reservoir m3 4.64 million Utilizable capacity of the reservoir m3 4.14 million Height of the dam m 20.4 Length of the dam m 2586 Type of the dam Homogeneous earth dam Renhe Reservoir Total storage capacity of the reservoir m3 26.88 million Utilizable capacity of the reservoir m3 18.82 million Elevation of the dam m 341 Length of the dam m 335 Qingzhou Type of the dam Mortared rubble spillway dam Area of the reservoir ha 120 Heihushan Reservoir Total storage capacity of the reservoir m3 53.6 million Utilizable capacity of the reservoir m3 33.75 million Elevation of the dam m 173

Length of the dam m 480 Type of the dam Homogeneous earth dam Area of the reservoir ha 224 Qiyi Reservoir Total storage capacity of the reservoir m3 3.36 Utilizable capacity of the reservoir m3 2.33 Elevation of the dam m 119 Length of the dam m 220 Type of the dam Homogeneous earth dam Area of the reservoir ha 55 Longhu Reservoir Total storage capacity of the reservoir m3 2.576 Utilizable capacity of the reservoir m3 1.198 Elevation of the dam m 104 Length of the dam m 140 Type of the dam Homogeneous earth dam Area of the reservoir ha 28 Bazhouzi Reservoir Total storage capacity of the reservoir m3 0.523 million Utilizable capacity of the reservoir m3 0.498 million Elevation of the dam m 96 Length of the dam m 50 Type of the dam Mortared rubble spillway dam Area of the reservoir ha 10

61. Water supply plants (WSPs). Total designed water supply capacity of the 15 WTPs is 368,600 m3/d (actual supply is currently 206,600 m3/d) in the five project counties. The quality of water supplied by all 15 meets the PRC National Drinking Water Quality Standard of GB5749-2006 except for fluoride content in the Gaomi WSPs (Table III-6).

Table III-6: Summary of Associated WSPs (m3/d) Designed Actual water County WSP Scope of Water Supply capacity supply Nanhu 45,000 10,000 South and center of Gaomi urban area Kanjia 40,000 30,000 8 towns and west of Gaomi urban area Beihu 30,000 20,000 North / northeast of Gaomi urban area Gaomi Jiaohe Economic Development Area and Wangwu 3,600 3600 82 villages Furi 60,000 25,000 Furi Co. and 6 towns on northern Gaomi Subtotal 178,600 88,600 Dongcheng 30,000 20,000 Population of water supply is 440,000 Chengbei 20,000 15,000 (urban); water supply pipeline of 294 km Shouguang No. 3 20,000 15,000 Population of water supply is 880,000 Five rural WSPs 50,000 10,000 (rural); water supply pipeline of 1230 km Subtotal 120,000 60,000 No.1 50,000 40,000 Population of water supply is 120,000 Huantai No. 2 20,000 18,000 (urban) Subtotal 70,000 58,000 Total 368,600 206,600

62. WWTPs. Total designed treatment capacity of the 11 WWTPs is 485,000 m3/d (actual

26 current treatment load is 447,000 m3/d). The WWTPs utilize mature bio-treatment processes. The effluent of all WWTPs meet Class I-A of PRC WWTP Effluent Quality Standard of GB18918-2002. Table III-7: Summary of Associated WWTPs (m3/d) Designed Actual treatment Wastewater Treatment Quality of County WWTP Area (ha) capacity capacity(m3/d) process effluence No.1 35,000 32,000 Integrated oxidation ditch Class I-A 2.93 No. 2 100,000 100,000 Modified oxidation ditch Class I-A 8.53 Gaomi No.3 50,000 50,000 Modified oxidation ditch Class I-A 4.87 Total 185,000 182,000 16.37 Chengbei 50,000 45,000 A/O hybrid bio-reactor Class I-A 5.0 A2/O bio-reactor+ Yangkou 40,000 35,000 Class I-B 7.0 flocculation precipitation Shou- Integrated oxidation ditch + Shouguang 120,000 100,000 Class I-A 40.0 guang flocculation precipitation A2/O bio-reactor+ Dongcheng 40,000 40,000 Class I-A 4.0 flocculation precipitation Subtotal 250,000 220,000 56.0 Meiling 50,000 41,000 SBR Class I-A 5.0 Mi River 20,000 15,000 A2/O bio-reactor Class I-A 3.0 Qingzhou Qingyuan 20,000 18,000 A2/O bio-reactor Class I-A 2.8 Subtotal 90,000 74,000 10.8 Huanke 50,000 45,000 A2/O bio-reactor Class I-A 4.2 Huantai Subtotal 50,000 45,000 Total 485,000 447,000

D. Anticipated Project Benefits

63. Improved water resources management, water security, and flood protection. The project is implementing a holistic approach by concurrently addressing surface and ground water management, specifically: (i) improved efficiency of water monitoring, physical transfer between channels and sites, and allocation, which will streamline water use and enable water-stressed areas to be assisted without further pressure on groundwater; (ii) improved storm water retention and reservoir storage capacity. The project will increase the amount of surface water supply by 152.55 million m3 by 2020. This will account for 26.2% of the total surface water supply in the five project counties by that year. Overall, the proportion of surface water contributing to total water supply in the project counties will increase from 28.4% in 2012 to 42.5% in 2020. For flood protection, two project counties, Gaomi and Changle, will expand the storage capacity of two reservoirs, Nanzai and Juchenghe. This will improve water security, especially in the dry season. Overall, the project will benefit over 4.1 million people in five counties, of which 48% are women, and 3.3% are under the PRC poverty line (

64. In at least one river system, the Ta (Shouguang County), water quality will be improved. Existing water quality is low (Grade V or lower). Through improved management of Judian wetland, including water circulation and purification through the reedbeds, water quality flowing out from the wetland is estimated to be at least Grade IV or better.

65. Improved wetland management. The project will improve hydrological and ecological management of the largest natural wetland in the project area, Judian, in Shouguang County. A bund will be constructed around the wetland to ensure it is permanently inundated, seasonal management of water levels will be implemented to maximize water circulation and pollution removal, and low islands will be established as waterbird habitats. Controlled excavation will provide shallow- and deep-water habitats for flora and fauna.

66. Climate change adaptation. Climate resilience has been included in the project design and

27 infrastructure as follows (see also Section V.G): (i) storage capacity of the two project reservoirs, Nanzai and Juchenghe, will be increased, strengthening resilience against drought; (ii) channel dredging and removal of excess sediments will increase flow capacity and buffer against increased unpredictability of floods; (iii) improved efficiency of water transfer between channels and water storage sources will strengthen resilience against uneven rainfall and drought in different areas; and (iv) a pilot for water-smart greenhouses aims to demonstrate water use efficiency.

67. Social and gender benefits. The project will help achieve improved sustainability and security of water resources for communities, agriculture, and industry. The project outputs are public well-being facilities with equitable gender benefit. The project will also promote the employment of women for project construction and operation, such as tree planting, landscaping or sanitation services.

IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE)

A. Environmental Setting of Shandong Province

68. Shandong Province lies on the east coast of the PRC and at the lower reaches of the Yellow River. In 2012 the population of the province was 93.67 million. The land area is 157,100 km2 and the coastline length is 3,100 km. The province has 17 municipalities and 140 counties (including county level cities and districts). Shandong has a temperate climate, with hot, rainy summers and dry, cold winters. Mean annual temperature is 10.5-13.5℃; the average temperature in July is 24-27℃, while the temperature in January is -4-1℃. Mean annual precipitation is 550-950 mm, increasing from northwest to southeast. The province is divided into four topographical zones: (i) Northwestern Shandong Plain, formed by deposits of the Yellow River; (ii) Jiaolai Plain, between central-south Shandong and Jiaodong hilly regions, bounded by bays in the north and south and traversed by the Jiaolai, Weihe and Dagu rivers; (iii) Central-South Shandong hilly area, with elevations >1,000 m ASL; and (iv) Jiaodong Hilly Area, the main part of the Shandong Peninsula.

69. The Yellow River passes through the province’s western region, entering the Bohai Sea along Shandong's northern coast. In Shandong it flows on a levee at a higher elevation than the surrounding land, and divides western Shandong into the Hai River watershed in the north and the Huai River watershed in the south. The Grand Canal enters the province from the northwest and leaves in the southwest. Weishan Lake is the largest lake in the province, with the total area of 1,266 km2.

70. Shandong ranks first among PRC provinces in the agriculture production of a variety of products, including cotton and wheat, as well as gold mining. Other important crops include tobacco, sorghum and maize, as well as peanuts, for which the province is especially well-known, providing nearly a quarter of the entire country's total. Shandong is also a significant producer of fruit. The province also has extensive deposits of natural gas, iron, diamonds, and bauxite. In 2013, the total GDP of province was CNY5.46843 trillion and per capita GDP was CNY56,463.64.

71. Shandong Province and Zibo and Weifang cities’ 12th Five-Year Plan. The provincial and municipal government plans focus on energy- and resource-efficient infrastructure, water conservation, and environmental protection for economic and social development, especially in small and medium cities. This continues the initiative of the 11th Five-Year Plan which involved infrastructure development to improve water conservation, and environmental protection.

B. Environmental Setting of Project Counties

(a) Geography, Topography and Geology

72. Shouguang City is situated in the northwest of Weifang Municipality, on the coast, with longitude 118°32’–119°10’ E and latitude 36°41’–37°19 N. It is bordered with the districts of Hanting and Weicheng in the west, Changle County and Qingzhou City in the north, Dongying City and Guangrao County in the east, and Laizhou Bay in the north, with the total coastline of 56 km. The territory of the city is about 60 km in north-south direction and 48 km in the east-west direction with a total area of 2,072 km2. The topography of Shouguang City is that the northern is higher than the southern with the slope rate of 0.07%. The highest elevation point (49.5 m ASL) is at southeast of Sanyuanzhu Village, and the total area of northern intertidal zone (about 1.0 m ASL) is 1,133 km2.

73. Changle County of Weifang Municipality is located in the middle of Shandong Peninsular. It is situated 150 km west of Qingdao City. The county is bordered by Linqu County and Qingzhou

City in the west, Anqiu County in the south, and Shouguang City in the North. It is on the transition area between Taiyi Mountain and the Bohai Plain with more hills and low mountains. The areas of mountains, hills and plains are 133 km2 (13% of the total), 474 km2 (46%) and 426 km2 (41%), respectively. The elevation range of Chengle County is 150 – 340 m ASL. The total area of the county is 1,101 km2.

74. Gaomi City, under the jurisdiction of Weifang Municipality, is located in the middle of the Shandong Peninsular with the longitude from 119°26’16’’ to 120°0’38’’E and the latitude from 36°8’44’’ to 37°41’20’’N. It is bordered by the cities of Anqiu and Changyi in the west, Jiaozhou City in the east, Zhucheng City in the south and Pingdu City in the north, it’s situated 70 km north of Qingdao City. The territory of Gaomi City is 60.1 km in north-south direction and 51.2 km in the east-west direction with a total area of 1,605.55 km2. The landform of the city is that the southern is higher than northern with the average slope of 1/600. The average elevation of the city is 19.3 m ASL, with the lowest elevation of 7.5 m ASL at the west riverfront of Jiaolai River and the highest of 109.4 m ASL at Liangyin Hill in the south.

75. Qingzhou City is situated in the west of Weifang City, with the longitude from 118°10’ to 118°46’ E and the latitude from 36°24’ to 36°58 N. It is bordered by Changle County in the east, Linqu County in the south, Zibo City in the west and Guangrao County in the north. The city is 60.6 km in north-south direction and 53.6 km in the east-west direction with total area of 1,569 km2.

76. Huantai County is situated in the north of Zibo Municipality, with the longitude from 117°50’ to 118°10’ E and the latitude from 36°51’ to 37°06’ N. It is bordered by Zibo District (urban area of Zibo City) in the east, Zhangdian District in the south, Zhoucun District in the southwest and Gaoqing County in the northwest. The county is 24.4 km in north-south direction and 27.5 km in east-west direction with total area of 509.53 km2. Topography is that the south is higher than the north with the slope rate of 1/700 to 1/2000. The elevation range is 6.5 -29.5 m (ASL).

77. Soil types, erosion, and seismicity9 of each project county are listed in Table IV-1.

Table IV-1: Soil, Soil Erosion and Seismicity of Project Counties. Project County Item Shouguang Changle Gaomi Qingzhou Huantai Soil type Loam, sand, Brown, cinnamon, Caliche black, Cinnamon, Loam, sandy, sandy loam calcareous brown, cinnamon brown sandy loam Soil erosion intensity (t/km2) 500 1,000 1,072 300 700 Soil erosion rate (tons/a) 420,800 232 16,000 2,052 74,000 Disturbed area (ha) 1,332.9 108.98 231.37 204.54 809.49 Seismic intensity Grade VI Grade VIII Grade VIII Grade VI Grade VI Earthquake acceleration (g) 0.05 0.20 0.10 0.05 0.05

(b) Meteorology and Climate

78. The project area belongs to eastern temperate continental monsoon climate, with four distinct seasons. Climate parameters for each project county are shown in Table IV-2.

Table IV-2: Main Meteorological Parameters of Project Counties (/a = per annum) Weather elements Shouguang Changle Gaomi Qingzhou Huantai Annual average temperature (°C) 12.5 12.5 13.3 13.5 13.7

9 Based on the PRC earthquake intensity zoning map (GB18306-2001).

Weather elements Shouguang Changle Gaomi Qingzhou Huantai Average temperature in July (°C) 26.0 26.1 26.3 27.0 27.0 Average temperature in January (°C) -3.0 3.4 -1.3 1.0 1.0 Annually average precipitation (mm/a) 580.3 636.7 656.2 650 569.5 Maximum annual precipitation (mm/a) 1,217.3 1,280 1,288 1,058.2 885.5 Minimum annual precipitation (mm/a) 304.2 310 312 284.7 284.7 Extreme maximum temperature (°C) 39.2 40.7 40.5 40.5 39.5 extreme minimum temperature (°C) -14.2 -11.6 -13.6 -12.0 -13.6 Average annual sunshine hours (h/a) 2550 2,668 2,252.1 2250 2240 Average relative humidity (%) 65 68 67 67 65 Average annual evaporation (mm/a) 1,345.7 1,500.0 2,000.0 2,139 2,100 Average annual rainy days (d/a) 80.0 79.8 81.2 80.0 79.0 Average wind speed (m/s) 2.5 2.6 2.6 2.6 2.7 Average frost-free days 190 190 188 190 188

79. Hydrology and surface and ground water resources in the project area were assessed by the design institutes and PPTA team. Water balances and pollutant loads were calculated for two waterbodies in the project area, Judian wetland and Mata ‘Lake’ drainage channels.

80. Shouguang City. There are two major watersheds in this administrative area, the Xiaoqing and Mi Rivers. Mean annual surface water runoff is 188 million m3 (Table IV-3a). Groundwater occurs in loose rock at depths of 10-20 m. The average single well yield is 40-120 m3/hour. Shouguang City has the largest area of ground subsidence in Shandong Province due to groundwater over-exploitation. The total groundwater reserve is 205 million m3 and the annual exploitable groundwater is 170 million m3.

Table IV-3a: Rivers in Shouguang City River Catchment area (km2) Length (km) within the city Mi River 149 70 Xiaoqing River 580 19.8 Zhangseng River 157 33.35 Xita River 85 21 Total 971 144.15

81. Judian wetland. This is a natural, shallow depression which over a century ago was apparently several thousand hectares in size. The wetland has shrunk, to its current size of about 1,700 ha, due to extensive upstream water regulation, including reservoir construction and flood gates. Reeds Phragmites spp. are the predominant vegetation community. Most or all of the lake has been cleared and graded at some point. Water flow is regulated by channels and roads in and/or around the lake (Figure 1). The lake is located within part of a groundwater subsidence area. The lake is dry in most months due to low in-flow. Existing hydraulic facilities are aged and

31 out-of-repair.

Figure IV-1: Current status of Judian wetland Wetland

82. Judian wetland receives inflow from three sources, the Ta and Mi Rivers and Chengbei Wastewater Treatment Plant (WWTP). The total annual inflow of these sources to Judian wetland is 31.65 million m3. Total annual water loss from the wetland is 21.14 million m3, comprising outflow (6.7 million m3), seepage (9.0 million m3) and evaporation (5.44 million m3). Net annual remaining water storage in the wetland is 10.5 million m3 (Table IV-3b; and which is consistent with the official stated figure of water storage, 10.47 million m3).

83. Pollutant load was calculated from baseline monitoring data in September 2014. Effluent quality of the Chengbei WWTP is Grade I-A of the PRC Pollutants Discharge Standard for WWTP (GB18918-2002). The designed water quality of the wetland after purification is Grade III of the PRC Surface Water Quality Standard of GB3838-2002. Purification loads for Judian wetland are listed in Table IV-3b and IV-3c.

Table IV-3a: Water Balance and Pollutant Load for Judian Wetland Water Volume Load of pollutant (t/yr) Item 3 (million m /yr) CODcr BOD5 NH3-N TP TN Total storage capacity (Grade III water quality) 10.47 210 43 10.5 2.1 10.5 Water intake from Ta River (5 intake channels) 21.09 1,687.0 413.3 52.9 13.3 114.7 Water intake from Mi River (Grade III quality) 1.36 27.2 5.4 1.4 0.3 1.4

Intake of treated effluent from Chengbei WWTP 10 9.20 460.0 92.0 46.0 9.2 138.0 (Grade I-A quality) Water out-flow (Grade III quality) -6.70 -134.0 -26.8 -6.7 -1.3 -6.7 Groundwater recharge (seepage) -9.00

Annual evaporation (deducted rainfall) -5.44

Remaining water (Grade III quality) 10.50 210.0 42.0 10.5 2.1 10.5 Water self- purification 2,040.2 526.0 104.1 23.5 257.9

10 WWTP treatment capacity is 20,000 m3/d and will be upgraded to 45,000 m3/d (16.425 million m3/a) by the project.

Table IV-3b: Monitoring Data for the Intake Rivers and Water Quality for Judian Wetland (mg/L) Grade I-A standard from Grade III Surface water Levels from combined river Pollutant WWTP (effluence from standard (designed inputs (prior to wetland intake) Chengbei WWTP) standard for the wetland)

CODcr 80 50 20

BOD5 19.6 10 4

NH3-N 2.51 5 1 TP 0.63 1 0.2 TN 5.44 15 1

84. Changle County. There are six main watersheds in this county, the Wei, Bailang, Mi, Dan, Yu, and Gui Rivers (Table IV-4). Annual surface water availability is 1.435 billion m3.

Table IV-4: River in Changle County River Catchment area (km2) Length (km) within the county Wen River 1,901 110 Bailang River 1,237 127 Dan River 132 14 Yu River 70 5.5 Gui River 88 17 Total 3,428 273.5

85. Nanzai Reservoir. The project will expand the storage capacity of the reservoir (Figure IV-2). Its current capacity is 4.25 million m3 and utilizable capacity is 2.37 million m3. Under the project this will be increased to 10.28 million m3 and 8.2 million m3 respectively.

Figure IV-2: Current Status of Nanzai Reservoir - Changle

86. Groundwater in Changle County comprises three areas: (i) the northern piedmont plain area, with groundwater depths of 10-20 m and mean single well yields of 30-50 m3/h; (ii) piedmont plain with mean groundwater depth of 150 m and mean single well yield of less than 30 m3/h (the area of greatest ground subsidence in the county due to over-exploitation); and (iii) the eastern plain area, with mean single well yield of 40-100 m3/h. Total county groundwater capacity is 106.67 million m3; annual exploitable capacity is 50.67 million m3.

87. Gaomi City. There are three watersheds in the city, South Jiaolai, North Jiaolai, and Huai

Rivers. The county has eight reservoirs, relatively small or medium sized. Total catchment area of the rivers is 1,526 km2 (Table IV-5). Annual surface water availability is 36.5 billion m3.

Table IV-5: River in Gaomi City River Catchment area (km2) Length (km) within the city South Jiaolai River 345 6 Morth Jiaolai River 1153 40 Huai River 28 5 Total 1,526 51

88. Groundwater is located in three main regions: (i) in porous rock upstream of Jiaolai River, at depths of 4-10 m and with mean single well yields of 40-125 m3/h; (ii) fault pore-fracture water south of Gaomi City, with a mean single well yield <40 m3/h; and (iii) bedrock fissure water, north of the city, with depths of 3-15 m and mean single well yield of 40 m3/h. Annual exploitable groundwater capacity is 102 million m3.

89. Qingzhou City. There are five rivers in this administrative area (Table IV-6). The groundwater is in porous rock at depths of 10-20 m, with mean single well yields of 40-120 m3/h. This is one of the key areas of ground subsidence in Shandong Province due to over-exploitation. Total groundwater reserve is 205 million m3, and exploitable capacity is 170 million m3/a.

Table IV-6: River in Qingzhou City River Catchment area (km2) Length (km) Mi River 297.2 29.8 Zi River 287.8 27.5 Nanyang River 171 32.5 Beiyang River 193 46.0 Shi River 229 31.3 Total 1,178 167.1

Figure IV-3: Current Situation of Beiyang River 90. Huantai County. The county has 11 main rivers (Table IV-7a). Groundwater is in porous rock, at depths of 10-20 m, with single well yields of 40-120 m3/h. Total groundwater reserve is 179.41 million m3, and exploitable groundwater capacity is 40.04 million m3/a.

Table IV-7a: The Seven Largest Rivers in Huantai County River Catchment area (km2) Length (km) in the county Xiaoqing River 1,377 18.8 Wu River 1,165 24.5 Xiaofu River 1,214 25.7 Dongzhulong River 252 8.42 Laozi River 119 8.8 Xinghua River 960 6.33 Shengli River 27 3.8 Total 5,114 96.35

Figure IV-4 Current Situations of Laozi River (left) and Wu River (right)

91. Mata ‘Lake’ drainage channels. This site is a natural depression which apparently was historically a large wetland about 2,000 ha in size, but has shrunk to a few hundred hectares. Water storage capacity is about 6.0 million m3. Mean and maximum water depths are 3.5 m and 5.5 m respectively. The wetland has almost entirely disappeared due to settlement and agriculture. It now comprises an agricultural landscape with a network of drainage channels. A recreational ‘water park’ is planned for the remaining area. The area receives inflow from four rivers. Total annual inflow is 20.0 million m3. Total annual outflow is 7.5 million m3, comprising seepage (3.4 million m3) and evaporation (4.1 million m3). Remaining water is 9.5 million m3 (Table IV-7b); and which is consistent with the official water storage capacity of 9.51 million m3). Water quality is Grade IV to V [Surface Water Quality Standard (BG3838-2002)]. The main pollutants are CODcr, BOD5, TN and TP. Pollutant loads were calculated based on baseline monitoring data collected in September 2014 and are listed in Tables IV-7b and IV-7c.

Table IV-7b: Water Balance and Pollutants Load for Mata ‘Lake’ drainage channels Water Volume Load of pollutant (ton/a) Item (water quality) 3 (million m /a) CODcr BOD5 NH3-N TP TN Designed water storage capacity (Grade III) 9.51 Water intake from North Channel from Yellow River 6.00 420.0 113.4 9.3 1.6 11.2 Diversion (Grade IV) Water intake from Xiaofu River (Grade V) 4.50 216.0 54.0 1.5 0.7 9.4 Water intake from Wu River (Grade V) 6.00 312.0 75.0 2.8 10.0 130.2 Water intake from East Zhulong River (Grade V) 3.50 84.0 22.8 3.2 3.2 45.2

Water release from channels (Grade III) -3.40 -68.0 -13.6 -3.4 -0.7 -3.4 Annual seepage -3.00 Annual evaporation (already deducted rainfall) -4.10 Remaining water (Grade III) 9.50 190.0 38.0 9.5 1.9 9.5 Water self- purification load 774.0 213.6 3.9 12.9 183.0

Table IV-7c: Water Quality Monitoring Data for the Intake rivers of Mata ‘Lake’ (mg/L) North Channel of Pollutant Xiaofu East Zhulong Grade III Surface water Yellow Water Wu River River River standard Diversion

CODcr 70 48 52 24 20

BOD5 18.9 12.0 12.5 6.5 4

NH3-N 1.55 0.34 0.46 0.92 1 TP 0.27 0.15 1.66 0.91 0.2 TN 1.87 2.08 21.7 12.9 1

(d) Water balance analysis for the five project counties

92. Water resource characteristics. Precipitation in the project area is characterized by large seasonal and annual variations. Most rainfall occurs between June and September, with 73.2% of annual rain falling in July and August, the flood season. Despite this the project area is subject to water shortages and the amount of water per person is low. The proportion of water resource in the province to the national water resource is 1.1% only. One person owns 344 m3 in average which is only 14.7% of the PRC average and 4% of the world average. Water pollution is serious, with qualities of Grade V or worse in most rivers/channels, caused by domestic wastewater discharge and agricultural activities (pesticide and fertilizers). Over-exploitation of groundwater has resulted in ground subsidence and sea water intrusion.

93. The total area of the five project counties is 6,982 km2, accounting for 41% of Weifang Municipality and 9% of Zibo Municipality. The total water resource in the area is 1.215728 billion m3, including surface water of 648.249 million m3 and groundwater of 726.306 million m3 (deducted repeated calculation of 158.828 million m3). The annual allowable groundwater exploitation quantity is 593.246 million m3 (Table IV-8).

Table IV-8: Annual Water Resource Amount in Average Year (104 m3) Total Water Area (1) Surface (2) Groundwater (3) Over-lap Allowable County 2 Resource （km ) Water Resource between 1 and 2 Groundwater [(1+2) – 3)] Gaomi 1,588 16,113.8 15,504.7 2,658.9 28,959.6 11,101.7 Qingzhou 1,546 15,666.7 22,580 6,784.1 31,462.6 16,973.2 Shouguang 2,258 18,827.3 11,395.9 0.0 30,223.3 13,227 Changle 1,091 11,651.1 10,665.9 4,354.5 17,962.5 6,374.4 Huantai 499 2,566 12,484.1 2,085.3 12,964.8 11,648.3 Total 6,982.0 64,824.9 72,630.6 15,882.8 121,572.8 59,324.6

94. Current water supply and demand. In 2012 the total water supply in the five project counties was 950.54 million m3 (about 71.6% of the expected water demand; Table IV-9) including 347.55 million m3 surface water (36.6%), 571.05 million m3 groundwater (60%) and 31.94 million m3 of

36 other water sources (reused wastewater and rainwater collection) (3.4%). The project counties are mainly dependent upon groundwater as their water supply. Sectoral water consumption was as follows: irrigation (59.9%); forest, animal husbandry and fisheries (3.4%); urban domestic (6.9%); rural domestic (3.4%); industry (25.9%); and landscaping (1.6%) (Figure IV-5).

Figure IV-5: Annual Water Consumption in Sectors in 2012

95. Water demand prediction. This was based on: (i) water demand quota in the sectors of agriculture, domestic (both rural and urban), industry and landscaping, as well as forestry, animal husbandry and fishery; (ii) data on social and economic development over the past 10 years (2003-2012) indicated in county year books; and (iii) the master plans of Shangdong Province, the municipality of Weifang and Zibo, and the five project counties. The county indices of socio-economic development include predictions of population growth, urbanization rate, adjustment of agricultural structure, and the factors of land use. The projections used to estimate future water demands were: (i) projected population growth for 2013-2020 (4.0–4.2%); (ii) urbanization rate, increasing from 55.5% to 60% during 2013-2020; (iii) total GDP of the project counties was assumed to increase from CNY212.35 billion in 2012 to CNY330.62 billion in 2020; and (iv) the unit GDP water consumption will decline from 15.4 m3 per CNY10,000 to 10.3 m3 per CNY10,000. Predicted water consumption up to 2025 is summarized in Table IV-9.

96. A climate risk and vulnerability assessment (CRVA) was conducted for the project, which indicates that by 2050, mean annual temperatures may increase by 1.5–2.70C and annual precipitation may decrease by 9.5–12% (Section V.G). These results were included in the water balance analysis. Reduced precipitation input – and therefore water supply – into the project area may decline due to climate change. However this is offset due to (i) the increase in water storage achieved in the project (in reservoirs, wetlands, and channels) and (ii) increased efficiency of water use (especially in agriculture) (see below).

Table IV-9: Water Consumption in Sectors Urban domestic Rural domestic Industrial water Water County Year water consumption water consumption consumption (m3 consumption for （Litres/person/day) （Litres/person/day) per CNY10,000) agriculture (m3/mu） 2012 90 60 15.0 Huantai 2020 110 80 9.0 184 2025 125 96 7.2 2012 80 60 15.0 Qingzhou 179 2020 100 75 10.0

County Year Urban domestic Rural domestic Industrial water Water water consumption water consumption consumption (m3 consumption for 2025 115 86 7.8 （（ per CNY10,000) 3 ） 2012 Litres/person/day100 ) Litres/person/day)60 15.0 agriculture (m /mu Shouguang 2020 120 80 9.0 120 2025 134 96 7.2 2012 90 60 15.0 Gaomii 2020 110 80 10.0 180 2025 125 96 8.0 2012 90 60 12.0 Changle 2020 110 80 8.5 170 2025 125 96 6.8

97. Long term (2025) annual water demand was predicted to be 1.49917 billion m3 (Table IV-10), a decline of 13% from 2012. Agriculture water demand is predicted to decrease from 72.5% in 2012 to 61.2% in 2025 by implementation of water-saving agriculture. Urban domestic water demand increases from 4.0% in 2012 to 9.2% in 2025, and rural domestic water demand decreases from 3.4% in 2012 to 2.7% in 2025 due to urbanization. Industrial water demand increases from 13.9% in 2012 to 18.4% in 2025 because of industrialization.

Table IV-10: Summary of Water Demand Projection (104 m3) Water demand Percentage of sector water demand County Sector 2012 2015 2020 2025 2012 2015 2020 2025 Huantai Agriculture 11,367 11,272 11,633 11,895 60.8% 56.1% 51.5% 46.9% Rural domestic 606 589 510 510 3.2% 2.9% 2.3% 2.0% Urban domestic 764 937 1,322 1,669 4.1% 4.7% 5.9% 6.6% Forestry, fishery and animal ------husbandry Landscaping 1,054 1,328 1,953 2,872 5.6% 6.6% 8.6% 11.3% Industry 4,907 5,964 7,165 8,433 26.2% 29.7% 31.7% 33.2% Subtotal 18,698 20,090 22,583 25,379 100.0% 100.0% 100.0% 100.0% Qingzhou Agriculture 29,027 27,219 24,439 23,683 77.9% 72.7% 68.1% 65.3% Rural domestic 1,345 1,333 1,207 1,106 3.6% 3.6% 3.4% 3.0% Urban domestic 966 1,259 1,966 2,739 2.6% 3.4% 5.5% 7.5% Forestry, fishery and animal 1,731 1,710 1,667 1,735 4.6% 4.6% 4.6% 4.8% husbandry Landscaping 600 1,710 1,667 1,735 1.6% 4.6% 4.6% 4.8% Industry 3,584 4,199 4,921 5,283 9.6% 11.2% 13.7% 14.6% Subtotal 37,253 37,430 35,867 36,281 100.0% 100.0% 100.0% 100.0% Shouguang Agriculture 26,221 25,939 26,373 25,714 75.7% 72.6% 69.7% 65.0% Rural domestic 978 987 948 967 2.8% 2.8% 2.5% 2.4% Urban domestic 2,162 2,532 3,318 4,072 6.2% 7.1% 8.8% 10.3% Forestry, fishery and animal 326 391 546 667 0.9% 1.1% 1.4% 1.7% husbandry Landscaping 250 400 600 785 0.7% 1.1% 1.6% 2.0% Industry 4,691 5,486 6,032 7,331 13.5% 15.4% 16.0% 18.5% Subtotal 34,628 35,735 37,817 39,536 100.0% 100.0% 100.0% 100.0% Gaomi Agriculture 11,075 12,322 14,400 14,760 58.2% 57.9% 59.0% 58.0% Rural domestic 883 877 795 811 4.6% 4.1% 3.3% 3.2% Urban domestic 1,554 1,872 2,552 3,170 8.2% 8.8% 10.5% 12.4% Forestry, fishery and animal 1,025 1,131 1,302 1,335 5.4% 5.3% 5.3% 5.2% husbandry Landscaping 560 618 760 856 2.9% 2.9% 3.1% 3.4% Industry 3,930 4,470 4,585 4,537 20.7% 21.0% 18.8% 17.8%

Water demand Percentage of sector water demand County Sector 2012 2015 2020 2025 2012 2015 2020 2025 Subtotal 19,027 21,290 24,394 25,469 100.0% 100.0% 100.0% 100.0% Changle Agriculture 18,520 17,379 16,127 15,692 80.3% 74.3% 70.7% 67.5% Rural domestic 662 672 652 683 2.9% 2.9% 2.9% 2.9% Urban domestic 1,033 1,235 1,666 2,076 4.5% 5.3% 7.3% 8.9% Forestry, fishery and animal 1,306 2,238 2,081 2,031 5.7% 9.6% 9.1% 8.7% husbandry Landscaping 239 287 400 737 1.0% 1.2% 1.8% 3.2% Industry 1,306 1,570 1,880 2,033 5.7% 6.7% 8.2% 8.7% Subtotal 23,066 23,381 22,806 23,252 100.0% 100.0% 100.0% 100.0% Whole project Agriculture 96,210 94,131 92,972 91,744 72.5% 68.2% 64.8% 61.2% area Rural domestic 4,474 4,458 4,112 4,077 3.4% 3.2% 2.9% 2.7% Urban domestic 6,479 7,835 10,824 13,726 4.9% 5.7% 7.5% 9.2% Forestry, fishery and animal 4,388 5,470 5,596 5,768 3.3% 4.0% 3.9% 3.8% husbandry Landscaping 2,703 4,343 5,380 6,985 2.0% 3.1% 3.7% 4.7% Industry 18,418 21,689 24,583 27,617 13.9% 15.7% 17.1% 18.4% Total 132,672 137,926 143,467 149,917 100.0% 100.0% 100.0% 100.0%

98. Surface water increase by the project. After project completion, annual surface water supply is estimated to increase by 152.55 million m3 by 2020, which will account for 26.2% of total surface water supply and 42.5% of all water supply. By increasing storm water retention and use, the project will reduce groundwater use and the risk of new land subsidence in the project counties (Table IV-11).

Table IV-11: Expected Surface Water Increase Amount by the Project (million m3) Increased surface water by 2012 2020 the project County Total Surface % surface Total Surface % surface Increased % surface water Water water water water water surface water water Huantai 177.22 26.31 14.8% 263.06 117 44.5% 43.87 37.5% Qingzbou 191.3 38.75 20.3% 281.04 50.4 17.9% 43.99 87.3% Shouguang 261.24 69.34 26.5% 363.66 134.1 36.9% 22.08 16.5% Gaomi City 206.27 63.6 30.8% 298.09 182.63 61.3% 34.11 18.7% Changle 132.72 77.06 58.1% 165.28 98 59.3% 8.5 8.7% Total 968.75 275.06 28.4% 1371.13 582.13 42.5% 152.55 26.2%

(e) Flora and Fauna

99. Two ecologists were deployed by the EIA Institute to undertake site visits and review regional literature on flora and fauna. Surveys were conducted in November 2014; results are summarized in Tables IV-10 and IV-11. The Weifang-Zibo Area is a heavily modified area with a density of 573 people/km2 and predominant land uses of farming (wheat, corn, beans, vegetables), forestry, and urban landscaping. The proportion of lands covered by vegetation (of all types, natural and planted, excluding farmland) in Weifang and Zibo municipalities, was 27% and 26% respectively in 2012. There are no records of rare or threatened flora or fauna (including fish, birds, mammals, reptiles, amphibians) or nationally protected species in the project area. The most dominant terrestrial vegetation in the project sites is poplar Populus spp. (Table IV-12), which is planted. These species have little ecological value.11

11 https://www.chinadialogue.net/article/1604-China-s-green-deserts-

Table IV-12: Flora in Project Area Family of Plant Scientific name / Chinese name Remark Ginkgoaceae/苦木科 Ginkgo biloba L/银杏 Cultivated Sabina chinensis (L.) Ant/圆柏 Cultivated Cupressaceae/楝科 S. chinensis (L.) Ant. cv. ‘Kaizuca/龙柏’ Cultivated Populus tomentosa Carr/毛白杨 Cultivated P．canadensis Moench/加拿大杨 Cultivated Salicaceae/鼠李科 Salix babylonica L/垂柳 Cultivated S. alicaceae. matsudana Koidz/旱柳 Cultivated S. alicaceae. matsudana Koidz. f. tortuosa (Vilm.)/Rehd/龙爪柳 Cultivated Ulmaceae/卫矛科 Ulmus pumila L/榆 Cultivated Equisetaceae/木贼科 Hippochaete ramosissima (Desf.) Boener/节节草． Wild Moraceae/桑科 Broussonetia papyrifera (L.) Vent/构树 Wild Polygonaceae/蓼科 Rumex acetosa L/酸模 Wild C．album L/藜 Wild Chenopodiaceae/藜科 Kochia scoparia (L.) Schrad/地肤． Wild Spmacia oleracea L/菠菜 Cultivated Portulacaceae/马齿苋科 Portulaca oleracea L/马齿苋 Wild Ranunculus chinenisis Bge/茴茴蒜 Wild Ranunculaceae/毛莨科 Pulsatilla chinensis (Bge.) Regel/白头翁 Wild Capsella bursa-pastoris Medic/荠 Wild Raphanus Sativus L/萝卜 Cultivated Brassica oleracea L．var. capitata/卷心菜． Cultivated Cruciferae/十字花科 Brassica oleracea L．var．botrytis L/花椰菜 Cultivated B．pekinensis (Lour.) Rupr/白菜 Cultivated B．chinensis L/青菜 Cultivated Rosa chinensis Jacq/月季 Cultivated Rosaceae/蔷薇科 Malus pumila Mill/苹果 Cultivated Prunus persica/桃 Cultivated Sophora japonica L/槐树 Wild Robinia pseudoacacia L/刺槐 Wild Glycinemax (L.) Merr/大豆 Cultivated Papilionaceae/蝶形花科 Phaseolus vulgaris L/菜豆 Cultivated Vigna radiatus (L.) Vilczek/绿豆 Cultivated Arachis hypogaea L/落花生 Cultivated Simarubaceae/苦木科 Ailanthus altissima (Mill.) Swingle/臭椿 Wild Meliaceae/楝科 Toona sinensis (A. Juss.) Roem/香椿 Cultivated Rhamnaceae/鼠李科 Ziziphus jujuba Mill. var. spinosa (Bge.) Hu ex H. F. Chow 酸枣 Wild Celastraceae/卫矛科 Euonymus japonicus Thunb/大叶黄杨 Cultivated Malva siensis Cavan/蓖麻 Wild Malvaceae/锦葵科 GossyPIOm hirsutum L/棉花 Cultivated Hibicus cannabinus L/洋麻 Cultivated Onagraceae/柳叶菜科 Gaura parviflora Douglas/小花山桃草 Wild Euphorbia humifusa Wild/地锦 Wild Euphorbiaceae/大戟科 Acalypha australis L/铁苋菜 Wild Calystegia hederacea Wall．ex Roxb/打碗花 Wild Convolvulaceae/旋花科 Convolvulus arvensis/田旋花 Wild Pharbitis nille (L.) Chiosy/裂叶牵牛 Wild

Family of Plant Scientific name / Chinese name Remark P. hederacea (L.) Choisy/牵牛 Wild Boraginaceae/紫草科 Trigonoti peduncularis (Trev.) Benth．et Mo ore/附地菜 Wild Labiatae/唇形科 Lagopsis supine (Steph.) IK．-Gal．ex Knorr/夏至草 Wild Capsium annuum L/辣椒． Cultivated Solanaceae/茄科 Solanum．melongena L/茄 Cultivated Lycopersicon esculentum Mill/番茄 Cultivated Scrophulariaceae/玄参科 Paulownia tomentosa (Thunb．) Steud/毛泡桐 Cultivated Pedaliaceae/胡麻科 Sessamum indicum L/芝麻 Cultivated Plantago asiatica L/车前 Wild Plantaginaceae/车前科 P．depressa Willd/平车前 Wild Cucurbita moschata (Duch．ex Lam．) Duch．ex Poiret/南瓜 Cultivated Cucumis sativus L/黄瓜 Cultivated Cucurbitaceae/葫芦科 Citrullus lanatus (Thunb.) Mansfeld/西瓜 Cultivated Luffa cylindrical (L.) Roem/丝瓜 Cultivated Xanthium sibiricum Patrin/苍耳 Wild A．annua L/黄花蒿 Wild A．argyl L’ evl．et Vant/艾 L． Wild Compositae/菊科 Conyza Canadensis (L.) Cronq/小蓬草． Wild Taraxacum mongolicum Han．蒲公英 Wild S．oleraceus L．苦苣菜 Wild Typhaceae/香蒲科 Typha orientalis Presl．东方香蒲 Wild Eragrostis pilosa (L.) Beauv/画眉草 Wild E．feruginea (Thunb.) Beauv/知风草 Wild Phragmites communis Trin/芦苇 Wild Roegneria japonensis (Honda) Keng/竖立鹅观草 Wild Eleusine indica (L.) Gaertn/牛筋草 Wild Chloris virgata Swartz/虎尾草 Wild Echinochloa crusgallii (L.) Beauv/稗． Wild Gramineae/禾本科 Digitaria sanguinalis (L.) Scop/马唐 Wild Setaria iridis (L.) Beauv/狗尾草 Wild Cleistogenes caesptosa Keng/丛生隐子草 Wild Bothriochloa ischaemum (L.) Keng/白羊草 Wild Achnatherum extremiorientale (Hara) Keng ex P. C. Kuo/芨芨草 Wild Zea mays L/玉米 Cultivated Triticum asetivum L/小麦 Cultivated Allium tuberosum Rottl．ex Spreng/韭 Cultivated Liliaceae/百合科 A．fistulosum L/葱 Cultivated

Table IV-13: Fauna Records for the Project Area Family Animal in English/Chinese Mammal/哺乳动物 Hare/野兔,hedgehog/刺猬, yellow weasel/黄鼠狼 Reptiles/爬行类 Gecko/壁虎、lizard/蜥蜴、snake/蛇 Amphibians/两栖类 frog 青蛙, 蟾蜍/toad Birds/鸟类 Sparrow/麻雀、magpie/喜鹊、swallow/燕子、cuckoo/布谷鸟 Insect/昆虫类 bee 蜂, butterfly 蝶, dragonfly 蜻蜓, cricket 蟋蟀, spider 蜘蛛, mantis 螳螂, ladybug 瓢虫, grasshopper 蚱蜢 Fish/鱼类 Carp/鲤鱼, crucian carp 鲫, grass carp/草鱼, loach 泥鳅, snakehead 黑鱼

Livestock/家畜类 Cattle/牛、sheep/羊、pig/猪、rabbit/兔 Poultry/家禽类 Chicken/鸡、duck 鸭、goose/鹅、pigeon/鸽子 Invertebrate/无脊椎动物 Earthworm/蚯蚓, leech/蚂蟥、scorpion/蝎, centipede 蜈蚣, scutiger/蚰蜒

(f) Social and Economic Conditions

100. Shouguang City. The population was 1.1394 million in 2012, GDP was CNY47.03 billion and annual per capita GDP was CNY41,276. The ratios of primary (agriculture), secondary (industry), and tertiary (all other) sectors were 14.2%, 51.9% and 33.9%, respectively. Shouguang is the largest producer of vegetables in the PRC. Changle County: Total population was 625,900 in 2012. GDP was CNY14.584 billion in 2011 and annual per capita GDP was CNY23,301. The ratios of primary, secondary, and tertiary sectors were 14.8%, 51.7% and 33.5%, respectively. Gaomi City: Total population was 895,600 in 2012. Total GDP was CNY44.58 billion and annual per capita GDP was CNY49,777. The ratios of primary, secondary, and tertiary sectors were 4.65%, 33.46% and 61.90%, respectively. Qingzhou City: Total population was 940,400 in 2012. Total GDP was CNY44.91 billion and annual per capita GDP was CNY47,756. The ratios of primary, secondary, and tertiary sectors were 4. 2%, 64.9% and 30.9%, respectively. Huantai County: Total population was 504,000 in 2012. The total GDP of the county reached CNY38.7 billion and annual per capita GDP was CNY76,786. The ratios of primary, secondary, and tertiary sectors were 4. 4%, 66.5% and 29.1%, respectively.

C. Environmental Baseline for Shouguang City Project Sites

101. Environmental baseline monitoring was conducted by Shandong Provincial Analyzing and Examination Center (SPAEC) in October 2014. Locations are in Fig. IV-6; results are below.

Monitoring Point Surface water Soil Air and Noise

Figure IV-6: Monitoring Locations for Shouguang Component

(a) Surface water quality

102. Baseline monitoring was undertaken in sections of seven project rivers and one wetland (Judian). Under local regulations, the rivers are assigned to receive discharge of treated wastewater and are subject to Grade V of PRC Environmental Quality Standards for Surface Water of GB3838-2002 based on Weifang Municipality Surface Water Functional Map. SPAEC conducted the surface water baseline monitoring on 6 September 2014. Nine monitoring points were selected (Table IV-12; Figure IV-4). Results are summarized in Table IV-12).

Table IV-12: Monitoring Locations for Surface Water - Shouguang Sample River/Lake Position 1 Yishouxin River 500 m upstream at confluence Yishouxin River and Judian wetland 2 Yang River 500 m upstream at confluence Yang, Zhinu and Xinzhinu Rivers 3 Zhinu River 500 m upstream at confluence of Zhinu and Wuyang Rivers 4 Wuyang River 500 m upstream at confluence Yang, Zhinu and Xinzhinu Rivers 5 Xinzhinu River 500 m upstream at confluence of Xinzhinu and Zhinu Rivers 6 Xinta River At Lijiawu river sluice 7 Xizhangseng River 500 m upstream at No.1 river sluice 8 Inflow of Judian wetland At Nongchang Bridge of Judian wetland 9 Judian wetland In center of Judian wetland

Table IV-13: Surface Water Quality, Shouguang Component. Unit: mg/L, except pH and fecal coliform Monitoring Location Grade V Parameter No.1 No.2 No.3 No.4 No.5 No.6 No.7 No.8 No. 9 Standard pH 7.19 7.69 7.47 6.94 7.37 7.19 7.50 7.15 7.78 6~9 Sulfate 829 301 576 627 904 724 711 774 841 ≤250 Chloride 1233 253 392 849 455 702 894 557 712 ≤250 CODCr 70 46 55 60 40 45 40 80 76 ≤40 BOD5 21.7 12.4 14.3 16.8 10.8 11.7 10.8 19.6 19.8 ≤10 NH3-N 0.62 2.61 3.16 2.35 2.44 2.12 0.43 2.51 0.48 ≤2.0 TP 0.36 0.52 1.15 0.37 0.09 0.23 2.19 0.63 0.09 ≤0.4 TN 0.88 20.4 8.82 2.88 3.02 2.78 9.36 5.44 1.0 ≤2.0 As 0.0075 0.0044 0.0027 0.0016 0.0010 0.0013 0.0032 0.0013 0.0018 ≤0.1 Fluoride 0.76 0.67 0.7 0.68 0.59 0.64 1.81 0.58 1.18 ≤1.5 Volatile Phenol 0.001 0.012 0.002 0.005 0.01 0.004 0.017 ND 0.008 ≤0.1 Petroleum 0.04 0.06 0.04 0.03 0.02 0.03 0.02 0.04 0.02 ≤1.0 TDS 3709 1188 1903 2876 2471 2580 2895 2355 3096 ≤1000 Fecal coliform 5400 7000 7900 7900 5800 8400 9200 9200 7000 ≤40000 Cu 0.0001 ND 0.0001 ND ND ND ND ND 0.0002 ≤1.0 Zn ND ND ND ND ND ND ND ND 0.0002 ≤2.0 Se ND ND ND ND ND ND ND ND ND ≤0.02 Hg ND ND ND ND ND ND ND ND ND ≤0.001 Cd ND ND ND ND ND ND ND ND ND ≤0.01 Cr6+ ND ND ND ND ND ND ND ND ND ≤0.1 Cyanide (CN-) ND 0.007 ND ND ND ND 0.008 0.005 ND ≤0.2 Anionic surfactant 0.56 0.51 0.62 0.65 0.61 0.57 0.55 0.59 0.51 ≤0.3 Sulfide 0.02 ND 0.01 0.01 0.01 ND ND 0.01 ND ≤1.0 NO3-N 0.24 17.5 5.61 0.5 0.43 0.58 8.83 2.86 0.51 ≤10 Fe 0.02 0.07 0.14 0.35 0.04 0.16 0.05 0.14 0.02 ≤0.3 Mn 0.197 0.019 1.291 0.864 0.864 1.675 0.615 2.19 0.08 ≤0.1

103. Table IV-13 shows that monitored parameters at most monitoring points did not meet the

Grade V standard of GB3838-2002. This is due to agricultural, domestic and industrial pollution.

(b) Quality of Sediment in Rivers and Lakes

104. Five sediment samples (Table IV-14) were taken by SPAEC on 6 September 2014. Results (Table IV-15) indicate that sediment quality complies with the Standards for Pollutants in Sludge and Sediment for Agricultural Use (GB4284-84) and Grade I of the PRC Soil Quality Standard (GB15618-95). Supernatant liquid from the sediment (Table IV-16a) meets the “Standard for Identification of Hazardous Wastes - Identification for Extraction Toxicity” (GB5085.3-2007).

Table IV-14: Monitoring Points for River Sediment - Shouguang No. Sampling location Purpose for monitoring Yishouxin River (500 m upstream at confluence of Yishouxin 1 Same as #1– surface water morning River and Judian wetland 2 500 m upstream at confluence Yang, Zhinu, Xinzhinu Rivers Same as #2–surface water morning 3 500 m upstream at confluence Yang, Zhinu, Xinzhinu Rivers Same as #4–surface water morning 4 500 m upstream at confluence Xinzhinu and Zhinu Rivers Same as #5–surface water morning 5 Xinta River at Lijiawu river sluice Same as #6–surface water morning

Table IV-15: Baseline of River Sediment Quality - Shouguang (Unit: mg/kg) Parameter No.1 No.2 No.3 No.4 No.5 Standard Value GB4284-84 Cd 0.06 0.64 0.33 0.09 0.63 ≤20 Hg 0.012 0.758 0.077 0.027 0.401 ≤15 As 13.7 6.18 5.83 9.63 4.75 ≤75 Cu 22 504 69 36 237 ≤500 Pb 21 30 26 28 27 ≤1000 Cr6+ 76 100 64 80 114 ≤1000 Zn 59 368 186 101 363 ≤1000 Ni 27 34 28 38 43 ≤200 Benzopyrene (g/L) 0.8 25.7 35.4 20.1 8.09 ≤3.0 mg/kg

Table IV-16a: Baseline of Sediment Leaching Liquid Quality - Shouguang (Unit: mg/L) Monitoring Point Parameter Standard Value GB5085.3-2007 No.1 No.2 No.3 Cd 0.00012 0.00016 0.00011 ≤1.0 Hg ND ND ND As 0.0007 0.0028 0.0023 ≤5.0 Cu 0.007 0.098 0.022 ≤100 Pb 0.0003 0.0016 0.001 - Cr6+ ND ND ND - Zn 0.005 0.037 0.017 ≤100 Ni 0.006 0.032 0.032 ≤5.0 Fluoride 0.0033 0.0097 0.0083 ≤100 Benzopyrene (g/L) 0.0033 0.0097 0.0083 ≤0.0003 mg/L Fluoride 1.97 0.85 0.86 -- Cyanide ND ND ND --

105. In addition to the routine sampling described above, additional sampling specifically for pesticides and herbicides in surface water, sediment and soil was conducted. This was due to the potential presence of high levels of agricultural chemicals, given the long-term farming activity in the project counties. Field samples were taken by SPAEC from 6-9 March 2015 at project sites in four counties (Table IV-16b). Ten parameters were sampled, comprising four organo-chlorine pesticides (DDT, Lindane, Heptachlor-endo-epoxide, Benzex), five organophosphorus pesticides (Parathion-methyl, Malathion, Dimethoate, Dichlorvos, Parathion) and one herbicide (Atrazine).

Table IV-16b: Sampling Locations for Monitoring of surface Water, Sediment and Soil County Gaomi Shouguang Qingzhou Huantai Juchenghe Upstream of Ta Heihushan East Zhulong River Surface Reservoir River Reservoir water Xiashan Downstream of Ta Beiyang River Wu River Reservoir River Xiashan Ta River at Judian Sediment Beiyang River East Zhulong River Reservoir wetland Shore of Judian Bank of Beiyang Bank of South Main Channel for Soil Xigan Channel Wetland River Yellow River diversion

106. Sampling results for surface water (Table IV-16c) and soil and sediments (Table IV-16d) were compared against the PRC Standard for Drinking Water Source and Soil Quality Standard (GB15618-95) respectively. [The PRC standards for Surface Water Quality (GB3838-2002) for Grade I to V water bodies, and, Pollutants in Sludge and Sediment for Agricultural Use (GB4284-84) do not include parameters for pesticides and herbicides]. The PRC Soil Quality Standard includes only two pesticide parameters, DDT and Benzex.

107. The results show that: (i) Juchenghe and Xiashan Reservoirs (the drinking water sources for Gaomi County) meet the drinking water standard; (ii) levels of DDT and Benzex in all soil samples met the soil standard; (iii) sediment samples at Ta River upstream of Judian Wetland (Shouguang County) contained high levels of Heptachlor-endo-epoxide (6.9 mg/kg); and (iv) sediment samples at East Zhulong River (Huantai County) contained high levels of DDT (2.1 mg/kg), Heptachlor-endo-epoxide (34.7 mg/kg) and Benzex (3.0 mg/kg). On the basis of these findings, none of the dredged sediment from these two latter locations will be used in farmland, and will instead be disposed in the approved construction disposal sites for this project (Table V-4). These disposal sites have been lined with clay (to prevent leakage), compacted, and post-project rehabilitation plans have been completed and approved by the Shandong EPD.

Table IV-16c: Sampling Results for Pesticides and Herbicides in Surface Water (mg/L) Parameter Gaomi Shouguang Qingzhou Huantai Standard East Xiashan Down- Beiyang Wu Juchenghe value for Upstream Heihushan Zhulong Reservoir stream of River River Reservoir drinking of Ta River Reservoir River (Grade Ta River (Grade (Grade (Grade III) water (Grade V) (Grade III) (Grade III) (Grade V) V) V) source V) DDT <0.0002 <0.0002 0.001 <0.0002 <0.0002 <0.0002 <0.0002 0.001 0.0001 Lindane <0.0001 <0.0001 0.002 <0.0001 <0.0001 <0.0001 <0.0001 <0.0001 <0.0001 Heptachlor- <0.00005 <0.00005 0.0002 <0.0011 <0.0005 0.0038 0.0012 <0.0005 0.0016 endo-epoxide Benzex <0.0001 <0.0001 0.05 <0.0001 <0.0001 <0.0001 0.0014 <0.0001 <0.0001 Parathion- <0.0002 <0.0002 0.002 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 methyl Malathion <0.0002 <0.0002 0.05 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 Dimethoate <0.0002 <0.0002 0.08 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002

Dichlorvos <0.0005 <0.0005 0.05 <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 <0.0005 Parathion <0.0002 <0.0002 0.003 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 <0.0002 Atrazine <0.0008 <0.0008 0.003 <0.0008 <0.0008 <0.0008 <0.0008 <0.0008 <0.0008

Table IV-16d: Sampling Results for Pesticides and Herbicide in Sediment and Soil (mg/kg dry volume) Parameter Gaomi Shouguang Qingzhou Huantai South Main PRC West Ta River East Channel for Standard Xiashan Judian Beiyang Beiyang Main at Judian Zhulong Yellow GB15618-95 Reservoir Wetland River River Channel Wetland River River (Grade I/II/III (sediment) (soil) (sediment) (soil) (soil) (sediment) (sediment) diversion soil) (soil) DDT <0.002 <0.002 <0.002 0.002 <0.002 <0.002 2.1 0.013 0.05/0.50/1.0 Lindane <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 - Heptachlor- 0.0033 0.0068 6.9 0.074 0.0045 0.036 34.7 0.83 - endo-epoxide Benzex <0.001 <0.001 0.73 0.018 <0.001 0.007 3.0 0.018 0.05/0.50/1.0 Parathion- <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 - methyl Malathion <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 - Dimethoate <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 - Dichlorvos <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 - Parathion <0.002 <0.002 <0.002 <0.002 <0.002 0.15 <0.002 <0.002 - Atrazine <0.02 0.10 <0.02 <0.02 <0.02 0.55 <0.02 <0.02 -

(a) Air Quality

108. Daily air quality was monitored by SPAEC for seven consecutive days during 21-27 October 2014 in three locations (Figure IV-4; Table IV-17). Sampling data are in Table IV-18. The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996). The monitored SO2 and NO2 met Grade II of National Ambient Air Quality Standard (GB 3095-1996), while the TSP, PM2.5 and PM10 slightly exceeded the standard due to dry weather, low vegetation coverage and strong wind.

Table IV-17: Monitoring Location for Air Quality and Noise– Shouguang No. Location Direction to the Reservoir Purpose of Monitoring 1 Niutou Village 1,400 m (SE) Air quality on downwind of Judian wetland 2 Yangxu Village 200 M (S) Air quality at sensitive receptor along the river 3 Beizai Village 100 m (E) Air quality at sensitive receptor along Ta River

Table IV-18: Daily Average Concentrations of the Monitored Pollutants - Shouguang Baseline Monitoring Monitoring Class II Standard Assessment Daily Average Parameter Location of GB3095-1996 Result No.1 0.105-0.175 Exceed 3 PM10 (mg/m ) No.2 0.095-0.159 0.15 Exceed No.3 0.097-0.169 Exceed No.1 0.055～0.089 Exceed 3 PM2.5 (mg/m ) No.2 0.049～0.083 0.075 Exceed No.3 0.052～0.085 Exceed TSP No.1 0.201-0.342 0.30 Exceed

No.2 0.183-0.311 Exceed No.3 0.194-0.332 Exceed No.1 0.038-0.055 Meet 3 SO2 (mg/m ) No.2 0.035-0.053 0.30 Meet No.3 0.039-0.049 Meet

3 No.1 0.025-0.040 Meet NO2 (mg/m ) No.2 0.027-0.034 0.15 Meet No.3 0.024-0.036 Meet

(b) Acoustic environment

109. Noise monitoring in the project area was conducted on 22 October 2014 at the same three locations for the air sampling (Figure IV-4; Table IV-17). Noise levels at all three locations met the PRC Environmental Quality Standard for Noise (GB3096-2008) – Grade II and World Bank Group’s EHS guideline values of 55 dB and 45 dB for day and night-time respectively (Table IV-19).

Table IV-19: Baseline Noise Monitoring Data (dB(A)) – Shougaung Baseline World Bank EHS Compliance with No. Monitoring Result Standard of GB3096-2008 Guideline standards Day 43.5 60 (Grade II) 55 Yes 1 Night 38.2 50 (Grade II) 45 Yes Day 43.4 60 (Grade II) 55 Yes 2 Night 38.2 50 (Grade II) 45 Yes Day 43.4 60 (Grade II) 55 Yes 3 Night 38.0 50 (Grade II) 45 Yes

D. Environmental Baseline for Changle County Project Sites

110. Environmental sampling was conducted by Weifang Municipal Environmental Monitoring Station (EMS) from 19-26 September 2013; locations are shown in Figure IV-5.

a) Surface Water Quality

111. The assigned environmental function of the proposed reservoir and related rivers is Class III of PRC Environmental Quality Standards for Surface Water (GB3838-2002) based on Weifang Municipality Surface Water Functional Map. The Weifang EMS conducted the surface water baseline monitoring on 19 January and 14 April 2014. Four monitoring points were selected (Table IV-20; Figure IV-7). Most parameters met Grade III standard of GB3838-2002; BOD5 at No. 1, 2 and 3 points exceeded the standard, CODcr at No.3 point, and TN at all points, exceeded the standard (Table IV-21). This is mainly due to non-point pollution from agriculture.

Table IV-20: Baseline Monitoring Locations for Surface Water – Changle Sampling No. Site Position 1 500 m upstream of reservoir Xiaodan River 2 500 m downstream at the spillway of reservoir 3 Side of the reservoir Nanzai Reservoir 4 Deep water area of reservoir

Monitoring Pint Ambient air Groundwater Sediment Soil

Surface Water

Noise Figure IV-7: Baseline Sampling Locations of Changle

Table IV-21: Surface Water Quality at Nanzai Reservoir and Xiaodan River, Changle. Unit: mg/L, except pH and fecal coliform Sampling No. 1 2 3 4 Grade III Monitoring Date 19 January 2014 Standard Parameter AM PM AM PM AM PM AM PM pH 7.94 7.97 7.98 7.94 7.96 7.89 7.87 7.65 6~9

SS 7 9 11 10 9 8 7 7 ≤100 Sulfate 112 112 72.2 72.7 93 92.6 93.4 93.4 ≤250 Chloride 121 122 42.5 42.2 37.2 36.9 37.2 37.1 ≤250

CODCr 19 17 20 19 23 25 19 18 ≤20

BOD5 4.2 4 4.4 4.4 4.5 4.6 4 3.8 ≤4

NH3-N 0.04 0.03 0.04 0.04 0.05 0.06 0.03 0.04 ≤1.0 TP 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 ≤0.05 As ND ND ND ND ND ND ND ND ≤0.05 Pb ND ND ND ND ND ND ND ND ≤0.05 Fluoride 0.27 0.3 0.45 0.44 0.4 0.43 0.41 0.38 ≤1.0 Total Hardness 310 306 222 204 210 210 244 236 ≤450 Volatile Phenol ND ND ND ND ND ND ND ND ≤0.005 Petroleum 0.03 0.05 0.05 0.04 0.02 0.02 0.03 0.02 ≤0.05 TDS 696 650 396 386 302 316 326 318 ≤1000 Fecal coliform 130 80 130 130 80 80 170 230 ≤10000 Monitoring Date 14 April 2014 DO 8.53 8.52 8.57 8.40 8.37 8.38 8.89 8.87 ≤5.0

CODMn 3.6 3.7 2.8 2.7 3.4 3.3 3.1 2.8 ≤6.0 TN 2.48 2.81 1.21 1.10 2.09 1.92 2.11 2.23 ≤1.0 Cu 0.09 0.06 0.04 0.02 0.02 0.01 ND ND ≤1.0 Zn 0.13 0.07 0.05 0.06 0.04 0.04 0.02 — ≤1.0 Se ND ND ND ND ND ND ND ND ≤0.01 Hg ND ND ND ND ND ND ND ND ≤0.0001 Cd ND ND ND ND ND ND ND ND ≤0.005 Cr6+ ND ND ND ND ND ND ND ND ≤0.05 Cyanide (CN-) ND ND ND ND ND ND ND ND ≤0.2 Anionic surfactant 0.16 0.14 0.15 0.13 0.17 0.15 0.16 0.18 ≤0.2 Sulfide ND ND ND ND ND ND ND ND ≤0.2

NO3-N 1.91 1.91 0.43 0.50 1.47 1.53 1.42 1.54 ≤10 Fe 0.15 0.13 0.15 0.08 0.16 0.12 0.09 0.08 ≤0.3 Mn — 0.01 0.08 0.09 0.01 ND ND ND ≤0.1

b) Groundwater quality

112. Four points were sampled in and near the proposed reservoir construction sites on 19 January 2014 (Figure IV-5; Table IV-22). Most parameters met Grade III of the Groundwater Quality Standard, except nitrate at No.1, 2 and 4 locations, and total hardness at No.1 and No.4 points (Table IV-23), probably due to agricultural activities. PRC Grade III Groundwater Quality Standard of GB14848-93 applies to the project site according to the local environmental functional zoning.

Table IV-22: Monitoring Locations for Groundwater Quality – Changle Depth of Groundwater Temperature of No. Location Note well (m) Table (m) groundwater (℃) 1 Xiaofuqian Village 23.5 12.1 14.3 Upstream of reservoir 2 South of Bianxia River 15.4 10.7 14.5 Near reservoir 3 Yangxu Village 14.1 11.8 14.7 Downstream of reservoir 4 Beizai Village 22.7 9.6 14.0 Downstream of reservoir

Table IV-23: Baseline of Groundwater Quality – Changle. (mg/L, except for pH and coliform) Monitoring Location Grade III Parameter Standard of No.1 No.2 No.3 No.4 GB14848-93 pH 7.65 7.79 7.4 6.83 6.5~8.5 Total hardness 520 374 277 570 ≤450 CODMn 1.06 0.68 0.98 0.83 ≤3.0 NH3-N 0.02 0.02 0.04 0.02 ≤0.2 Sulfate 146 64.7 76.7 150 ≤250 Cr+6 ND ND ND ND ≤0.05 Total Coliform ND ND ND ND ≤3.0 each/L Nitrate nitrogen 66.9 27.6 6.38 89.8 ≤20 Nitrite nitrogen ND ND 0.007 0.001 ≤0.02 Chloride 88.8 61.1 36.7 113 ≤250 Volatile phenol ND ND ND ND ≤0.002 TDS 878 602 390 956 ≤1000 Fluoride 0.16 0.35 0.37 0.32 ≤1.0 Pb ND ND ND ND ≤0.05 Cd ND ND ND ND ≤0.01 As ND ND ND ND ≤ Hg ND ND ND ND ≤0.001

c) Air Quality

113. Daily average air quality was monitored by the EMS for seven consecutive days during 18-24 January 2014. Four samples were taken at downwind and upwind of the reservoir (Figure IV-5; Table IV-24). Samples for SO2 and NO2 in the project area met Grade II of PRC Ambient Air Quality Standard (GB 3095-1996), while TSP and PM10 slightly exceeded the standard due to dry weather and strong wind in the winter (Table IV-25). The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996).

Table IV-24: Location for Ambient Air Quality Monitoring – Changle Direction to No. Location Purpose of Monitoring Reservoir 1 South of Bianxia River South Air quality baseline on upwind area of the reservoir 2 Yangxu Village North Air quality baseline on downwind area of the reservoir 3 Beizai Village North-West Air quality baseline on downwind area of the reservoir 4 Jiangjia Waizi West Air quality baseline on the area nearby the reservoir

Table IV-25: Daily Average Concentrations of the Monitored Air Pollutants – Changle Baseline Parameter Location Daily Average Class II of GB3095-1996 Result No.1 0.179 Exceed

3 No.2 0.190 Exceed PM10 (mg/m ) 0.15 No.3 0.194 Exceed No.4 0.176 Exceed No.1 0.34 Exceed No.2 0.34 Exceed TSP 0.30 No.3 0.35 Exceed No.4 0.32 Exceed

No.1 0.12 Meet

3 No.2 0.10 Meet SO2 (mg/m ) 0.30 No.3 0.12 Meet No.4 0.12 Meet

3 No.1 0.07 Meet NO2 (mg/m ) No.2 0.06 Meet 0.15 No.3 0.06 Meet No.4 0.06 Meet

D. Environmental Baseline for Gaomi City Project Sites

114. Environmental baseline monitoring for Gaomi was conducted by SPAEC. The monitoring results are summarized below. The monitoring locations are shown in Figure IV-6.

a) Surface water quality

115. Sampling was conducted on 6 September 2014 at three locations (Table IV-26; Figure IV-8). The assigned standard is Grade III of PRC Environmental Quality Standards for Surface Water (GB3838-2002) based on Weifang Municipality Surface Water Functional Map. All sampled parameters except CODcr and BOD5 met Grade III standard of GB3838-2002 (Table IV-27), the latter probably due to non-point pollution from agriculture.

Table IV-26: Locations for Monitoring of Surface Water - Gaomi No. Sampling Purpose of monitoring No.1 Xiashan Reservoir Water quality of the Xiashan Reservoir No.2 Wangwu Reservoir Water quality of Wangwu reservoir No.3 Juchenghe Reservoir Water quality of Juchenghe Reservoir

Table IV-27: Surface Water Quality - Gaomi Baseline Unit: mg/L, except pH and fecal coliform Monitoring Point Grade III Standard Parameter No.1 No.2 No.3 of GB3838-2002 PH 8.03 7.45 7.26 6-9 NH3-N 0.18 0.09 0.31 ≤1.0 NO3-N 0.13 0.02 0.07 ≤10 TDS 539 326 433 ≤1,000 CODcr 32 21 26 ≤20 Fluoride 0.51 0.69 0.49 ≤1.0 Chloride 111 68.6 85.4 ≤250 Sulfate 109 80 83.8 ≤250 fecal coliform 1,700 1,300 1,700 ≤10,000 BOD5 8.3 5.3 6.8 ≤4 TP 0.08 0.02 0.06 ≤0.2 TN 0.34 0.12 0.40 ≤1.0 Petroleum 0.02 0.04 0.02 ≤0.05 Fe 0.13 0.02 0.02 ≤0.3 Mn 0.005 0.004 0.006 ≤0.1 Cr6+ ND ND ND ≤0.05 Cd ND ND ND ≤0.005 Pb 0.0003 ND 0.0001 ≤0.05 Cu 0.0028 0.0013 0.0009 ≤1.0 Zn 0.0013 0.0006 0.0010 ≤1.0

Hg ND ND ND ≤0.0001 As 0.0036 0.0009 0.0008 ≤0.05 Se ND ND ND ≤0.01 Cyanide ND ND ND ≤0.02 Phenol ND ND ND ≤0.005

Monitoring Pint Surface water River sediment Soil

Figure IV-8: Monitoring Locations for Gaomi Component

b) Quality of Sediment in River and Reservoir

116. Two sediment samples at Juchenghe Reservoir (No.1) and Xigan Channel (No.2) were taken and monitored by SPAEC on 6 September 2014. The monitoring results (Table IV-29: Leaching Liquid Quality of Sediment - Gaomi Baseline (Unit: mg/L)

Monitoring Point Standard Value Parameter No.1(Juchenghe Reservoir) No.2 (West Main Channel) GB5085.3-2007 Cd 0.00005 0.00008 ≤1.0 As 0.0005 0.0014 ≤5.0 Cu 0.010 0.014 ≤100 Pb 0.0015 0.046 ≤ Cr6+ ND ND - Zn 0.009 0.021 ≤100 Ni 0.014 0.021 ≤5.0 Fluoride 0.34 0.65 ≤100 Benzopyrene (g/L) 0.0037 0.0034 ≤0.0003 mg/kg Cyanide ND ND -

117. and IV-29) indicate that the sediment quality of the sediment complies with the Standards for Pollutants in Sludge and Sediment for Agricultural Use (GB4284-84) and Grade I of the PRC Soil Quality Standard (GB15618-95). Supernatant liquid from sediment met the “Standard for Identification of Hazardous Wastes - Identification for Extraction Toxicity” (GB5085.3-2007).

Table IV-28: River Sediment Quality - Gaomi Baseline (Unit: mg/kg) No.1 (Juchenghe No.2 (West Main Parameter Standard Value GB4284-84 Reservoir) Channel) Cd 0.01 0.04 ≤20 Hg 0.038 0.018 ≤15 As 7.52 5.11 ≤75 Cu 24 70 ≤500 Pb 28 19 ≤1000 Cr 73 102 ≤1000 Zn 82 92 ≤1000 Ni 28 80 ≤200 Benzopyrene (g/L) 7.2 2.7 ≤3.0 mg/kg

Table IV-29: Leaching Liquid Quality of Sediment - Gaomi Baseline (Unit: mg/L) Monitoring Point Standard Value Parameter No.1(Juchenghe Reservoir) No.2 (West Main Channel) GB5085.3-2007 Cd 0.00005 0.00008 ≤1.0 As 0.0005 0.0014 ≤5.0 Cu 0.010 0.014 ≤100 Pb 0.0015 0.046 ≤ Cr6+ ND ND - Zn 0.009 0.021 ≤100 Ni 0.014 0.021 ≤5.0 Fluoride 0.34 0.65 ≤100 Benzopyrene (g/L) 0.0037 0.0034 ≤0.0003 mg/kg Cyanide ND ND -

c) Groundwater quality

118. Five points were selected for the groundwater quality baseline monitoring within and nearby the proposed project sites by SPAEC on 10 September 2014. The monitoring locations are shown in Figure IV-6 and Table IV-30. The monitoring results are shown in Table IV-31 below. The national Grade III Groundwater Quality Standard of GB14848-93 applies to the project site according to the local environmental functional zoning.

Table IV-30: Monitoring Locations for Groundwater Quality Baseline - Gaomi No. Location Purpose of monitoring 1 Upstream of Wangwu Reservoir Groundwater quality baseline at water source location 2 Downstream of Chengnan Reservoir Groundwater quality baseline in middle of project sites 3 Wangdang water source location Groundwater quality baseline at Wangdang water source 4 Jiaohe Farm Fluoride level in the groundwater of high fluoride area 5 Lijiadang Village Fluoride level in the groundwater of high fluoride area

Table IV-31: Groundwater Quality – Gaomi Baseline. Unit: mg/L, except for pH and coliform. Monitoring Location Grade III Parameter Standard of No.1 No.2 No.3 No.4 No.5 GB14848-93 Temperature (℃) 16.5 15.7 15.1 15.9 16.1 -- pH 7.92 7.34 7.63 7.36 7.83 6.5~8.5 Total hardness 257 421 204 1132 876 ≤450 CODMn 1.7 1.33 1.92 2.51 1.64 ≤3.0 NH3-N 0.02 0.02 0.03 0.02 0.02 ≤0.2 Sulfate 100 128 117 72.6 485 ≤250 Cr+6 ND ND ND ND ND ≤0.05 Total Coliform 26 ND 120 70 42 ≤3.0 each/L Nitrate nitrogen 2.21 22 2.83 1.52 41.7 ≤20 Nitrite nitrogen 0.004 0.003 0.003 0.01 0.009 ≤0.02 Chloride 109 245 119 987 749 ≤250 Volatile phenol ND ND ND ND ND ≤0.002 TDS 584 956 472 2344 2260 ≤1000 Fluoride 0.27 1.76 0.35 7.59 6.65 ≤1.0 Pb ND ND ND ND ND ≤0.05 Cd ND ND ND ND ND ≤0.01 As ND ND ND ND ND ≤ Hg ND ND ND ND ND ≤0.001 Fe ND ND ND 0.02 ND ≤0.03 Mn ND ND ND 0.27 ND ≤0.1 Cyanide ND ND ND 0.27 ND ≤0.05

119. Table IV-31 shows that the 8 in 20 monitored parameters exceeded the Grade III of the Groundwater Quality Standard, most likely as a result of agricultural activities and domestic wastewater pollution according to the DEIA.

d) Air Quality

120. Daily air quality was monitored by SPAEC for seven consecutive days during 21-27 October 2014 at three locations (Figure IV-6; Table IV-32). The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996). The SO2 and NO2 met Grade II of National Ambient Air Quality Standard (GB 3095-1996) while TSP, PM10 and PM2.5 slightly exceeded the standard (Table IV-33), probably due to dry weather.

Table IV-32: Monitoring Location for Ambient Air and Noise– Gaomi No. Location Purpose of Monitoring 1 Juchenghe Village Baseline air and noise on the proposed Juchenghe Reservoir 2 Dagoutou Village Baseline air and noise on the proposed West Water Transmission Channels Baseline air and noise on the proposed water diversion pipeline from Xiashan 3 Xifengge Village Reservoir to the urban area

Table IV-33: Daily Average Concentrations of the Air Pollutants - Gaomi Baseline Parameter Location Daily Average Class II Standard of GB3095-1996 Result No.1 0.118~0.155 Exceed 3 PM10 (mg/m ) No.2 0.113~0.157 0.15 Exceed No.3 0.125~0.165 Exceed No.1 0.060~0.079 Exceed 3 PM2.5 (mg/m ) No.2 0.057~0.082 0.075 Exceed No.3 0.064~0.085 Exceed No.1 0.230~0.299 meet TSP No.2 0.221~0.304 0.30 Exceed No.3 0.244~0.311 Exceed No.1 0.039~0.053 Meet 3 SO2 (mg/m ) No.2 0.043~0.056 0.30 Meet No.3 0.043~0.38 Meet No.1 0.022~0.034 Meet 3 NO2 (mg/m ) No.2 0.024~0.044 0.15 Meet No.3 0.024~0.04 Meet

121. Noise sampling was conducted on 22 October 2014 at and near the project sites in three locations (the same as for air monitoring; Figure IV-6, Table IV-32). Noise levels met the PRC Environmental Quality Standard for Noise (GB3096-2008) – Grade II and World Bank Group’s EHS guideline values (Table IV-34).

Table IV-34: Baseline Noise Monitoring Data (dB(A)) – Gaomi Baseline No. Monitoring Result Standard of GB3096-2008 World Bank EHS Guideline Result Day 46.1 60 (Grade II) 55 Meet 1 Night 40.2 50 (Grade II) 45 Meet Day 45.4 60 (Grade II) 55 Meet 2 Night 39.4 50 (Grade II) 45 Meet Day 47.6 60 (Grade II) 55 Meet 3 Night 40.3 50 (Grade II) 45 Meet

E. Environmental Baseline for Qingzhou City Project Sites

122. Environmental baseline monitoring for Qingzhou City was conducted by SPAEC in September 2014. The results are below. Monitoring locations are shown in Figure IV-9.

e) Surface Water Quality

123. The assigned environmental functions of the reservoir and rivers are Class III, IV and V of PRC Environmental Quality Standards for Surface Water (GB3838-2002), based on Weifang Municipality Surface Water Functional Map. Surface water sampling at eight points was conducted on 6 September 2014 (Table IV-35; Figure IV-7). Results are summarized in Table IV-36.

Table IV-35: Locations for Monitoring of Surface Water – Qingzhou No. Monitoring Location Applicable standard 1 Renhe Reservoir III 2 Heihushan Reservoir III 3 Qiyi Reservoir V 4 Yaowang Lake IV 5 Bagouzi Reservoir V 6 Xiazhuang Reservoir V 7 Zhaojiazhuang Reservoir V 8 Beiyang River (3 km downstream of Zhaojiazhuang Reservoir) V

Monitoring Point Surface water Sediment Soil Ambient air and noise Water flow direction

Figure IV-9: Baseline Monitoring Locations for Qingzhou Component

Table IV-36: Quality of Surface Water – Qingzhou Baseline. Unit: mg/L, except pH and fecal coliform No. of Monitoring Point Grade of Standard Parameter No.1 No.2 No.3 No.4 No.5 No.6 No.7 No.8 III IV V pH 8.1 8.34 8.72 8.48 7.4 8.34 8.61 8.03 6~9 6~9 6~9 Sulfate 66.6 78.2 45.4 62.3 102 43.9 127 46.8 ≤250 ≤250 ≤250 Chloride 9.32 16.8 18.8 61.4 103 88.8 159 82.7 ≤250 ≤250 ≤250 CODCr 22 26 30 24 32 68 136 66 ≤20 ≤30 ≤40 BOD5 5.5 6.2 7.8 6 7.7 22.4 45.8 23.1 ≤4.0 ≤4.0 ≤6.0 NH3-N 0.11 0.09 0.23 0.2 3.46 7.01 13.3 3.58 ≤1.0 ≤1.5 ≤2.0

TP 0.01 0.01 0.04 0.06 1.91 2.34 2.78 1.68 ≤0.05 ≤0.3 ≤1.5 As ND ND ND ND ND ND ND ND ≤0.05 ≤0.1 ≤0.1 Pb 0.0001 0.0001 0.0004 0.0001 0.0002 ND ND ND ≤0.05 ≤0.05 ≤0.10 Fluoride 0.17 0.16 0.35 0.54 1.39 0.82 0.39 0.48 ≤1.0 ≤1.5 ≤1.5 Volatile Phenol ND ND ND ND 0.003 0.002 ND 0.002 ≤0.005 ≤0.01 ≤0.10 Petroleum 0.01 0.02 0.02 0.03 0.04 0.07 0.08 0.06 ≤0.05 ≤0.5 ≤1.0 TDS 730 321 238 369 755 527 701 680 ≤1000 ≤1000 ≤1000 Fecal coliform 3300 3200 3800 3200 2800 3200 3500 2500 ≤10000 ≤20000 ≤40000 TN 2.05 3.15 0.35 0.28 12.1 7.47 13.6 4.1 ≤1.0 ≤1.5 ≤2.0 Cu 0.0012 0.0008 0.0019 0.0008 0.0008 0.0006 0.0003 0.0002 ≤1.0 ≤1.0 ≤1.0 Zn 0.0011 0.0007 0.0023 0.0015 0.0015 0.0008 0.0003 0.0003 ≤1.0 ≤2.0 ≤2.0 Se 0.0006 0.0004 0.0043 0.0048 0.0016 0.0041 0.0073 0.0026 ≤0.01 ≤0.02 ≤0.02 Hg ND ND ND ND ND ND ND ND ≤0.0001 ≤0.001 ≤0.001 Cd ND ND ND ND ND ND ND ND ≤0.005 ≤0.005 ≤0.010 Cr6+ ND ND ND ND ND ND ND ND ≤0.05 ≤0.05 ≤0.10 Cyanide (CN-) ND ND ND ND 0.012 ND 0.013 0.007 ≤0.2 ≤0.2 ≤0.2 Anionic 0.35 0.33 0.37 0.32 0.31 0.34 0.36 0.36 ≤0.2 ≤0.3 ≤0.3 surfactant Sulfide ND ND ND 0.01 ND ND 0.02 0.01 ≤0.2 ≤1.0 ≤1.0 NO3-N 1.89 2.98 0.11 0.08 8.46 0.42 0.12 0.41 ≤10 ≤10 ≤10 Fe 0.01 0 0.32 0.01 0.02 0.07 0.02 0.41 ≤0.3 ≤0.3 ≤0.3 Mn 0.002 0.002 0.008 0.007 0.013 0.093 0.018 0.028 ≤0.1 ≤0.1 ≤0.1

124. Table V-36 shows that water quality at monitoring points No. 1 and 2 could not meet Grade III standard of GB3838-2002, with the standard-exceeding parameters of CODcr, BOD5, TN and anionic surfactant. Water quality at No. 3 and No.5 could not meet Grade V standard with the standard-exceeding parameters of NH3-N, TP, TN and anionic surfactant; and that of No.6, No.7 and No.8 could not meet the Grade V standard with the exceeding parameters of CODcr, BOD5, NH3-N, TP, TN and anionic surfactant. The major reasons for the standard-exceeding were the non-point pollution from agriculture activities and domestic pollution from nearby villages.

f) Quality of Sediment in Beiyang River

125. Sediment sampling was taken in Beiyang River by SPAEC on 6 September 2014. The results (Tables IV-38 and IV-39) indicate that the sediment quality complies with the Standards for Pollutants in Sludge and Sediment for Agricultural Use (GB4284-84) - for alkaline soil. And the leaching liquid from sediment met PRC Standard for Identification of Hazardous Wastes - Identification for Extraction Toxicity (GB5085.3-2007). The quality of sediments also met the Grade I of the PRC Soil Quality Standard (GB15618-95).

Table IV-37: Sampling Points for Sediment Monitoring - Qingzhou Sampling location Purpose for monitoring

Beiyang River (1 km downstream from Zhangzhuang Reservoir) Same as #8–surface water monitoring

Table IV-38: River Sediment Quality - Qingzhou Baseline (Unit: mg/kg) Parameter No.1 Standard Value GB4284-84 Cd 0.14 ≤20 Hg 0.205 ≤15 As 6.58 ≤75

Cu 32 ≤500 Pb 32 ≤1000 Cr6+ 75 ≤1000 Zn 121 ≤1000 Ni 28 ≤200 Benzopyrene (g/L) 0.91 ≤3.0 mg/kg

Table IV-39: Leaching Liquid Quality of Sediment – Qingzhou Baseline. Unit: mg/L Parameter No.1 Standard Value GB5085.3-2007 Cd 0.0001 ≤1.0 Hg ND As 0.002 ≤5.0 Cu 0.020 ≤100 Pb 0.023 ≤ Cr6+ ND - Zn 0.014 ≤100 Ni 0.035 ≤5.0 Fluoride 0.36 ≤100 Benzopyrene (g/L) 0.0031 ≤0.0003 mg/L Cyanide ND --

(a) Air Quality

126. Daily air quality was monitored by the EMS for seven consecutive days from 15-21 June 2013 at three locations (Figure IV-7; Table IV-40). Quality of SO2 and NO2 met Grade II of National Ambient Air Quality Standard (GB 3095-1996), while TSP, PM10 and PM2.5 slightly exceeded the standard (Table IV-41).

Table IV-40: Monitoring Location for Ambient Air Quality and Noise– Qingzhou No. Location Distance and direction to construction site 1 Xijiande Village 20 m east of the main Channel for water diversion from Mi River 2 Beixiguan Village 10 m east of construction site for connection of Qiyi and Xiaowannghhe Reservoirs 3 Xiajia Village 20 m west of Beiyang River

Table IV-41: Daily Average Concentrations of the Baseline Air – Qingzhou Baseline Parameter Location Daily Average Class II Standard of GB3095-1996 Result No.1 0.124～0.161 Exceed

3 PM10 (mg/m ) No.2 0.140～0.177 0.15 Exceed

No.3 0.136～0.183 Exceed

No.1 0.063～0.085 Exceed

3 PM2.5 (mg/m ) No.2 0.073～0.095 0.075 Exceed

No.3 0.069～0.095 Exceed

TSP No.1 0.226～0.303 0.30 Exceed

No.2 0.262～0.327 Exceed

No.3 0.249～0.339 Exceed

No.1 0.039～0.060 Meet

3 SO2 (mg/m ) No.2 0.037～0.058 0.30 Meet

No.3 0.034～0.046 Meet

No.1 0.023～0.039 Meet 3 NO2 (mg/m ) No.2 0.024～0.038 0.15 Meet

No.3 0.020～0.035 Meet

(d) Acoustic environment

127. Noise monitoring in the project area was conducted on 22 October 2014 at and near the project site in three locations (the same as for air monitoring; Figure IV-7, Table IV-40). Noise levels met the PRC Environmental Quality Standard for Noise (GB3096-2008) – Grade II and World Bank Group’s EHS guideline values (Table IV-42).

Table IV-42: Baseline Noise Monitoring Data (dB(A)) No. Result Standard of GB3096-2008 World Bank EHS Guideline Assessment Result Day 40.7 60 (Grade II) 55 Meet 1 Night 38.6 50 (Grade II) 45 Meet Day 47.5 60 (Grade II) 55 Meet 2 Night 39.2 50 (Grade II) 45 Meet Day 43.4 60 (Grade II) 55 Meet 3 Night 37.0 50 (Grade II) 45 Meet

F. Environmental Baseline for Huantai County Project Sites

128. Environmental baseline monitoring for Huantai was conducted by SPAEC in September 2014. Monitoring results are summarized below and locations are shown in Figure IV-10.

g) Surface Water Quality

129. The assigned environmental standards are Grade III (for Mata drainage channels) and Grade V (for rivers) of PRC Environmental Quality Standards for Surface Water of GB3838-2002. SPAEC conducted the surface water sampling on 6 September 2014 at nine locations (No. 3 and 4 points were dry during sampling; Table IV-43, Figures IV-8 and IV-9). Table V-44 shows that CODcr, BOD5, TP, TN, TDS and fluoride at some points exceeded the standards and the other parameters met the standards. Reasons for exceedances are wastewater discharge and non-point pollution from agriculture activities.

Table IV-43: Locations for Monitoring of Surface Water – Huantai No. Monitoring Location Standard 1 Main Canal of Yellow River Diversion V 2 500 m upstream in Xiaofu River at confluence with No.15 Channel V 3 200 m to the inverted siphon point in Main Canal of Yellow River Diversion V

4 Dazai Channel V 5 500 m upstream of Zhulong River prior to Mata ‘Lake’ V 6 Laozi River, 500 m prior to the confluence with Wu River V 7 Wu River, 500 m upstream to the confluence with Laozi River V 8 Wu River, 500 m prior to the flood diversion channel V 9 Mata ‘Lake’ III

Monitoring Point Surface water Soil

Figure IV-10: Locations for Surface Water Baseline Monitoring – Huantai.

Monitoring locations for Ambient Air and Noise

Figure IV-11: Locations for Ambient Air and Noise Baseline Monitoring – Huantai.

Table IV-44: Surface Water Quality – Huantai Baseline. Unit: mg/L, except pH and fecal coliform No. of Monitoring Point Grade of Standard Parameter No.1 No.2 No.5 No.6 No.7 No.8 No.9 III IV V pH 8.34 7.26 7.7 7.2 7.7 7.8 8.46 6~9 6~9 6~9 Sulfate 223 618 564 659 737 602 1361 ≤250 ≤250 ≤250 Chloride 373 1450 1389 255 485 485 549 ≤250 ≤250 ≤250 CODCr 70 48 52 139 25 24 28 ≤20 ≤30 ≤40 BOD5 18.9 12 12.5 43.1 6.3 6.5 7.3 ≤4.0 ≤4.0 ≤6.0 NH3-N 1.55 0.34 0.46 2.5 1.29 0.92 0.5 ≤1.0 ≤1.5 ≤2.0 TP 0.27 0.15 1.66 3.45 1.24 0.91 0.05 ≤0.05 ≤0.3 ≤1.5 As 0.0096 0.0021 0.0045 0.0048 0.003 0.0028 0.0085 ≤0.05 ≤0.1 ≤0.1 Pb 0.0001 ND 0.0004 ND 0.0003 0.0023 0.0007 ≤0.05 ≤0.05 ≤0.10 Fluoride 1.32 1.67 1.35 1.48 1.71 1.41 1.52 ≤1.0 ≤1.5 ≤1.5 Volatile Phenol ND ND 0.004 0.006 0.004 ND ND ≤0.005 ≤0.01 ≤0.10 Petroleum 0.05 0.02 0.03 0.12 0.04 0.04 0.02 ≤0.05 ≤0.5 ≤1.0 TDS 1827 3773 4763 2282 2197 2288 2883 ≤1000 ≤1000 ≤1000 Fecal coliform 2300 1800 1800 2500 2500 2200 2300 ≤10000 ≤20000 ≤40000 TN 1.87 2.08 21.7 2.85 14.6 12.9 1.58 ≤1.0 ≤1.5 ≤2.0 Cu 0.0039 0.0068 0.0005 0.0047 0.0001 0.0078 0.01 ≤1.0 ≤1.0 ≤1.0 Zn 0.0019 0.0037 0.0002 0.0027 0.0004 0.0086 0.0028 ≤1.0 ≤2.0 ≤2.0 Se ND ND ND ND ND ND ND ≤0.01 ≤0.02 ≤0.02 Hg ND ND ND ND ND ND ND ≤0.0001 ≤0.001 ≤0.001 Cd ND 0.00013 ND ND ND 0.00014 0.00007 ≤0.005 ≤0.005 ≤0.010 Cr6+ ND ND ND ND ND ND ND ≤0.05 ≤0.05 ≤0.10 Cyanide (CN-) ND ND 0.011 0.009 0.006 ND ND ≤0.2 ≤0.2 ≤0.2 Anionic 0.33 0.29 0.29 0.33 0.32 0.35 0.36 ≤0.2 ≤0.3 ≤0.3 surfactant Sulfide ND ND ND ND ND ND ND ≤0.2 ≤1.0 ≤1.0 NO3-N 0.26 1.6 21.1 0.24 13.1 11.9 1.06 ≤10 ≤10 ≤10

Fe 0.07 0.02 0.02 0.04 0.02 0.02 0.02 ≤0.3 ≤0.3 ≤0.3 Mn 0.022 0.014 0.045 0.17 0.02 0.01 0.01 ≤0.1 ≤0.1 ≤0.1

h) Groundwater Quality

130. Five points were selected for groundwater sampling in and near the proposed project sites by SPAEC on 10 September 2014 (Figure IV-8; Table IV-45). The national Grade III Groundwater Quality Standard of GB14848-93 applies to the project site according to the local environmental functional zoning. Total hardness, TDS, NO3-N, NO2-N, sulfate, chloride, fluoride and total coliform exceeded the standard; the other parameters met the standard (Table IV-46). Likely reasons for exceedance are agricultural activities and domestic wastewater discharge.

Table IV-45: Monitoring Locations for Groundwater Quality Baseline - Huantai No. Location Purpose of monitoring 1 Guoli Town Baseline at upstream area 2 Xincheng Reservoir Baseline at Xincheng Reservoir (main water source of the county) 3 Liujia Village Baseline value at center of the ground subsidence area 4 Qifeng Town Baseline of Mata drainage channels 5 Maqiao Town Baseline at upstream area

Table IV-46: Groundwater Quality – Huantai Baseline. Unit: mg/L, except for pH and coliform. Monitoring Location Grade III Parameter Standard of No.1 No.2 No.3 No.4 No.4 GB14848-93 Temperature (℃) 16 16.5 17.2 16.4 15.9 -- pH 7.62 7.83 8.14 7.78 8.22 6.5~8.5 Total hardness 1037 411 420 594 221 ≤450 CODMn 1.92 1.77 1.95 1.28 1.06 ≤3.0 NH3-N 0.02 0.02 0.02 0.03 0.02 ≤0.2 Sulfate 426 142 249 487 63.2 ≤250 Cr+6 ND ND ND ND ND ≤0.05 Total Coliform 420 210 430 470 420 ≤3.0 each/L Nitrate nitrogen 51.4 15.8 19.4 0.73 0.84 ≤20 Nitrite nitrogen 51.4 15.8 19.4 0.73 0.84 ≤0.02 Chloride 482 182 208 205 72.6 ≤250 Volatile phenol ND ND ND ND ND ≤0.002 TDS 2160 828 972 1332 400 ≤1000 Fluoride 0.9 0.91 0.88 2.35* 2.46* ≤1.0 Pb ND ND ND ND ND ≤0.05 Cd ND ND ND ND ND ≤0.01 As ND ND ND ND ND ≤ Hg ND ND ND ND ND ≤0.001 Fe ND ND ND ND ND ≤0.03 Mn ND ND ND ND ND ≤0.1 Cyanide ND ND ND 0.27 ND ≤0.05 *Small incidences of high-fluoride levels occur in some parts of Huantai County, but access to safe water (surface water) is higher than in Gaomi County and is not regarded as a health hazard for Huantai County.

i) Quality of Sediment in River and Lakes

131. Five sediment samples were taken by SPAEC on 6 September 2014. Results (Tables IV-48 and IV-49) indicate that sediment quality complies with the Control Standards for Pollutants in Sludge and Sediment for Agricultural Use-for alkaline soil. The leaching liquid from sediment met

PRC Standard for Identification of Hazardous Wastes - Identification for Extraction Toxicity (GB5085.3-2007). Sediment quality also met Grade I of PRC Soil Quality Standard (GB15618-95).

Table IV-47: Sampling Points for Sediment Monitoring - Huantai No. Sampling location 1 Same as the No. 5 point for surface water morning 2 Same as the No. 6 point for surface water morning 3 Same as the No. 7 point for surface water morning 4 Same as the No. 8 point for surface water morning 5 Same as the No. 9 point for surface water morning

Table IV-48: River Sediment Quality – Huantai Baseline. Unit: mg/kg Parameter No.1 No.2 No.3 No.4 No.5 Standard Value GB4284-84 Cd 2.05 0.19 0.29 1.39 0.03 ≤20 Hg 1.629 0.23 0.534 2.145 0.016 ≤15 As 16.6 12.3 10.4 42.2 12 ≤75 Cu 336 31 104 213 19 ≤500 Pb 71 42 54 151 20 ≤1000 Cr6+ 319 83 82 372 65 ≤1000 Zn 917 145 188 689 57 ≤1000 Ni 82 35 34 35 24 ≤200 Benzpyrene (g/L) 0.116 0.042 0.0248 0.0445 0.001.5 ≤3.0

Table IV-49: Leaching Liquid Quality of Sediment - Huantai Baseline. Unit: mg/L Monitoring Point Standard Value Parameter No.1 No.2 No.3 No.4 No.5 GB5085.3-2007 Cd 0.00079 0.00005 0.0004 0.00079 0.00008 ≤1.0 Hg 0.00005 ND 0.0001 0.00017 ND As 0.021 0.0024 0.0046 0.12 0.0038 ≤5.0 Cu 0.039 0.008 0.023 0.024 0.006 ≤100 Pb 0.0084 0.0022 0.0296 0.0193 0.001 ≤ Cr6+ ND ND ND ND ND - Zn 0.089 0.01 0.041 0.074 0.007 ≤100 Ni 0.051 0.007 0.013 0.033 0.003 ≤5.0 Fluoride 2.06 1.25 1.01 5.45 0.99 ≤100 Benzpyrene (g/L) 0.0024 0.0024 0.0058 0.0049 0.0029 ≤0.0003 Cyanide ND ND ND ND ND --

j) Air Quality

132. Daily air quality was monitored by SPAEC for seven consecutive days during 23-29 November 2013 at three locations (Figures IV-8, IV-9; Table IV-50). The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996). The SO2 and NO2 met the standard, while TSP, PM10 and PM2.5 slightly exceeded the standard (Table IV-51), probably due to dry weather, low vegetation coverage rate and strong wind.

Table IV-50: Location for Ambient Air Quality Monitoring – Huantai Distance and direction to the No. Location Purpose of Monitoring construction site 1 Yudi Village 20 m east of sluice gate, Dazai Channel Air, noise quality at water diversion gate 2 Yuer Village 30 m west of Shizijia Channel Air, noise quality at Mata ‘Lake’ 3 Heyatou Village 10 m west of Wu River Air, noise quality at Wu River

Table IV-51: Daily Average Concentrations of the Monitored Pollutants – Huantai Baseline Parameter Location Daily Average Class II Standard – GB3095-1996 Result No.1 0.12~0.189 Exceed 3 PM10 (mg/m ) No.2 0.115~0.18 0.15 Exceed No.3 0.143~0.182 Exceed No.1 0.065~0.099 Exceed 3 PM10 (mg/m ) No.2 0.063~0.097 0.075 Exceed No.3 0.075~0.099 Exceed No.1 0.219~0.345 Exceed TSP No.2 0.216~0.338 0.30 Exceed No.3 0.256~0.335 Exceed No.1 0.039~0.07 Meet 3 SO2 (mg/m ) No.2 0.043~0.077 0.30 Meet No.3 0.045~0.066 Meet

3 No.1 0.029~0.059 Meet NO2 (mg/m ) No.2 0.026~0.064 0.15 Meet No.3 0.032~0.046 Meet

(e) Acoustic environment

133. Noise monitoring was conducted on 22 October 2014, at the same locations for air sampling (Figure IV-9). Results met the PRC Environmental Quality Standard for Noise (GB3096-2008) – Grade II and World Bank Group’s EHS guideline values (Table IV-52).

Table IV-52: Baseline Noise Monitoring Data (dB(A)) – Huantai Baseline No. Result Standard of GB3096-2008 World Bank EHS Guideline Assessment Result Day 46.3 60 (Grade II) 55 Meet 1 Night 43.9 50 (Grade II) 45 Meet Day 48.3 60 (Grade II) 55 Meet 2 Night 44.5 50 (Grade II) 45 Meet Day 46.9 60 (Grade II) 55 Meet 3 Night 4 50 (Grade II) 45 Meet

E. Sensitive Receptors within Project Area of Influence in Project Counties

134. Based on the characteristics of the proposed components, the environmental features of

65 the sites and inspection by the EIA Institute, the sensitive receivers within the project area of influence in the five project counties have been identified and are listed in Tables IV-53 to IV-57.

Table IV-53: Environmentally Sensitive Receptors – Shouguang No. Sensitive Location Location & Distance from proposed site (m) 1 Xiaoguang Village 50 m south of Xinzhinv River 2 Zhengjianian Village 200 m south of Zhinv River 3 Yizhoulou Village 200 m south of Zhinv River 4 Datuo Village 300 m east of Yang River 5 Taitou Town 200 m east of Wuyang River 6 Niutou Village 1400 m southeast of Judian wetland 7 Koujiawu Village 1900 m northeast of Judian wetland 8 Wopu Village 100 m west of Xinta River 9 Wujiawopu Village 100 m east of Xinta River 10 Yangjiaweizi Village 100 m east of Xinta River

Table IV-54: Environmentally Sensitive Receptors – Changle Position in relation to Item No. Site reservoir boundary Households People Direction Distance(m) 1 Nanzai Village(totally resettled) - - 226 920 2 Yangxu Village N 330 163 568 3 Yangxin Village NE 90 60 245 4 Shimiao Village NE 120 40 151 5 Yuejiahe Village(totally resettled) - - 52 174 6 Bianxia Village (partly resettled) SW 80 328 1232 7 Xialou Village (partialy resettled) SE 90 76 294 Ambient air, 8 Dongliu Village E 300 82 304 Noise 9 Dongshaojia Village E 500 115 412 10 Bianxiahenan Village S 200 98 372 11 Xiaopuqian Village S 550 150 501 12 Fangxifeng Village E 300 88 346 13 Jinjia Village E 500 38 123 14 Beizai Village N 900 85 315 15 Jiangjiawazi Village W 950 39 126 Groundwater Villages nearby the reservoir Surface water Nanzai Reservoir, Xiaodan River and Shikang Water Supply Plant

Table IV-55: Environmentally Sensitive Receptors – Gaomi. WSP = water supply pipeline. No. Site Location & Distance from proposed site (m) 1 Chujiawangwu Village 210 m east of WSP (section from Wangwu to Daxin Villages) 2 Nanshiziyuan Village 30 m northeast of WSP (section from Wangwu to Daxin Villages) 3 Xiaoxin Village WSP (from Wangwu to Daxin Villages) will cross the village 4 Daxin Village 30 m southeast of WSP (section from Wangwu to Daxin Villages) 5 Dagoutou Village 20 m east of dredging site for West Main Water Transmission Channel 6 Daoxiang Village 5 m west of dredging site for West Main Water Transmission Channel 7 Bozi Village 350 m west of dredging site for West Main Water Transmission Channel 8 Dongchija Village 278 m west of dredging site for West Main Water Transmission Channel 9 Liujiaguan Village 0 m east of WSP (from Juchenghhe Reservoir to Liujiaguan Village) 10 Panji Village 100 m east of Xinta River 11 Zaoxing Village 167 m northwest of WSP (from Wangwut to Chengnan Reservoirs) 12 Xiaoyin Village 200 m southeast of WSP (section from Wangwu to Chengnan Reservoirs) 13 Dayin Village 290 m southeast of WSP (section from Wangwu to Chengnan Reservoirs) 14 Yangge Village 310 m west of WSP (section from Wangwu to Chengnan Reservoirs)

15 Xingjia Village 615 m northwest of Juchennghe Reservoir (expansion construction site) 16 Juchenghe Village 370 m northwest of Juchennghe Reservoir (expansion construction site) 17 Xichijia Village 230 m southwest of Juchennghe Reservoir (expansion construction site) 18 Liujia Village 45 m north of WSP from Xiashan Reservoir to the urban area 19 Liangwan Village 67 m southwest of WSP from Xiashan Reservoir to the urban area 20 Fujia Village 45 m northwest of WSP from Xiashan Reservoir to the urban area 21 Sifangge Village 65 m northwest of WSP from Xiashan Reservoir to the urban area 22 Tan Village 20 m north of WSP from Xiashan Reservoir to the urban area 23 Chen Village 63 m southeast of WSP from Xiashan Reservoir to the urban area 24 Tuxin Village 50 m north of water supply pipeline from Xiashan Reservoir to the urban area 25 Doufengtaizi Village 40 m north of WSP from Xiashan Reservoir to the urban area 26 Shija Village 114 m north of WSP from Xiashan Reservoir to the urban area 27 Anhe Village 91 m north of WSP from Xiashan Reservoir to the urban area 28 Panliu Village 270 m south of WSP from Xiashan Reservoir to the urban area

Table IV-56: Environmentally Sensitive Receptors – Qingzhou No. Sensitive Location Location & Distance from proposed site (m) 1 Nanfuwang Village 30 m west of water diversion channel from Renhe Reservoir 2 Dongfuwang Village 50 m west of water diversion channel from Renhe Reservoir 3 Xifuwang Village 200 m west of water diversion channel from Renhe Reservoir 4 Beifuwang Village 100 m west of water diversion channel from Renhe Reservoir 5 Huangchaoguan Village 50 m south of Huangxiaguan Tunnel 6 Suyusi Village 50 m north of Suyusiguan Tunnel 7 Dangjia Village 20 m south of Shigou River 8 Wangija Village 20 m north of Shigou River 9 Liujia Village 20 m north of Shigou River 10 Wangfen Town 20 m north of Shigou River 11 Laowa Village 20 m north of Shigou River 12 Dayukou Village 20 m south of Shigou River 13 Nanxiguan Town 10 m east and west of connection line of Qiyi Reservoir and Yaowang Lake 14 Beixiguan Town 10 m east of connection line of Qiyi Reservoir and Yaowang Lake 15 Shijia Village 10 m east and west of connection line of Qiyi Reservoir and Yaowang Lake 16 Zhongjia Village 100 m east of Beiyang River 17 Gaomiao Village 50 m south of Beiyang River 18 Bianjia Village 100 m east of Beiyang River 19 Hanjia Village 100 m east of Beiyang River 20 Dongzhang Village 50 m west of Beiyang River 21 Xiajia Village 20 m west of Beiyang River 22 Heya Village 100 m west of Beiyang River 23 Zhangmengkou Village 150 m east of Beiyang River 24 Xiaodian Village 20 m west of Beiyang River 25 Yuanshang Village 100 m west of Beiyang River 26 Zhaojia Village 50 m east of Beiyang River 27 Xiaowei Village 50 m west of Beiyang River 28 Niukou Village 100 m west of Beiyang River 29 Tianqiaosong Village 50 m east of Beiyang River 30 Xingliu Village 20 m west of Beiyang River 31 Gaoliu Village 20 m west of Beiyang River 32 Li Village 50 m east of Beiyang River 33 Wujia Village 20 m west of Beiyang River 34 Xishi Village 50 m east of Yinmi Main Channel 35 Zhoujia Village 200 m east of Yinmi Main Channel 36 Hutongzi Village 50 m west of Yinmi Main Channel 37 Fengling Village 30 m east of Yinmi Main Channel

No. Sensitive Location Location & Distance from proposed site (m) 38 Xideliu Village 20 m east of Yinmi Main Channel

Table IV-57: Environmentally Sensitive Receptors – Huantai No. Sensitive Location Location & Distance from proposed site (m) 1 Wangjia Village 24 m northeast of Main Channel for Yellow River Water Diversion 2 Liujia Village 20 m northeast of Main Channel for Yellow River Water Diversion 3 Dingxihuayuan Comunity 34 m sorthwest of Main Channel for Yellow River Water Diversion 4 Hongmiao Village 30 m north of Main Channel for Yellow River Water Diversion 5 Beiling Village 95 m north of Main Channel for Yellow River Water Diversion 6 Liren Village 210 m southeast of Main Channel for Yellow River Water Diversion 7 Zhoudong Village Across by Main Channel for Yellow River Water Diversion 8 Zhuangke Village 27 m south of Main Channel for Yellow River Water Diversion 9 Zhoujia Village 26 m north of Main Channel for Yellow River Water Diversion 10 Houliu Village 25 m south of Main Channel for Yellow River Water Diversion 11 Houxue Village 20 m south of Xiaofu River 12 Chensan Village 23 m north of Xiaofu River 13 Chenyi Village 25 m south of Xiaofu River 14 Chener Village 23 m south of Xiaofu River 15 Xishi Village 160 m north of Xiaofu River 16 Dongliu Village 80 m west of Xiaofu River 17 Fumiao Village 10 m east of Xiaofu River 18 Guanjia Village 15 m south of the South Main Channel for Yellow Water Diversion 19 Yuanwen Village 27 m east of the South Main Channel for Yellow Water Diversion 20 Houxu Village 15 m west of the South Main Channel for Yellow Water Diversion 21 Dongsha Village Crossed by Wu River 22 Xisha Village 128 m south of Wu River 23 yuhuangge Village 63 m north of Wu River 24 Dongfu Village 23 m south of Wu River 25 Nanwang Village 62 m south of Wu River 26 Mianwo Village 20 m south of Wu River 27 Xifu Village 40 m north of Wu River 28 Wumo Village 77 m north of Wu River 29 Yangqiao Village 19 m south of Wu River 30 Xinghe Community 59 m northwest of Wu River 31 Xingheruiyuan Community 51 m northwest of Wu River 32 Huayuan Village 115 m southeast of Wu River 33 Dongzhen Village 25 m southeast of Wu River 34 Yong’an Village Crossed by Wu River 35 Majia Village 96 m southeast of Wu River 36 Ren Village 6 m west of Wu River 37 Zhangqiao Village 57 m west of Wu River 38 Gongyi Village 25 m west of Wu River 39 Yihe Village 55 m east of Wu River 40 Taoyuan Village 13 m west of Wu River 41 Heyatou Village 22 m east of Wu River 42 Gengqiao Village 30 m west of Wu River 43 Lijia Village 20 m west of Wu River 44 Yong’anqiao Village 125 m east of Wu River 45 Wuhetou Village Crossed by Wu River 46 Xinquan Village 15 m east of Wu River 47 Xiaowuhetou Village 113 m west of Wu River 48 Qinan Village Crossed by Wu River

No. Sensitive Location Location & Distance from proposed site (m) 49 Qibei Village Crossed by Wu River 50 Xia Village Crossed by Wu River 51 Beixia Village Crossed by Wu River 52 Muzai Village 30 m east of Dongfenhong River 53 Tianyuan Community 40 m west of Laozi River 54 Qianlu Village 10 m east of Laozi River 55 Houlu Village 11 m east of Laozi River 56 Yijia Village 17 m west of Laozi River 57 Xiguoli Village 30 m west of Dongfenhong River 58 Dongguoli Village 30 m east of Laozi River 59 Xiyihe Village 17 m west of Laozi River 60 Dongyihe Village 40 m east of Laozi River 61 Dongma Village 140 m west of Laozi River 62 Dongbianfang Village 20 m east of Laozi River 63 Jiangfang Village 107 m southeast of Laozi River 64 Sancha Village 148 m north of Laozi River 65 Wangxie Village 10 m west of Dongzhulong River 66 Yudi Village 37 m east of Laozi River 67 Xudian Village 126 m west of Laozi River 68 Tangyi Village Crossed by Laozi River 69 Tangsan Village Crossed by Laozi River 70 Tanger Village Crossed by Laozi River 71 Pozhadian Village 173 m east of Laozi River 72 Huagou Village 33 m east of Laozi River 73 Dongying Village 60 m north of Dongyingnan Channel 74 Jituo Village 190 m northwest of Dongyingnan Channel 75 Yujia Village 10 m east of Dongyingnan Channel 76 Xingjia Village Crossed by Qilipai Channel 77 Qianchu Village Crossed by Qilipai Channel 78 Tianjiawa Village 21 m west of Guanzhuang Channel 79 Yusi Village Crossed by Guanzhuang Channel 80 Yuyi Village 68 m east of Xiangchang Channel 81 Yuer Village Crossed by Shizijia Channel 82 Yusan Village Crossed by Shizijia Channel 83 Songjia Village 10 m east of water diversion channel from the reservoir 84 Haozai Village 30 southwest of Dazai Channel 85 Nanxue Village 63 m east of Dazai Channel 86 Qiaoxi Village 170 m east of Dazai Channel

V. ANTICIPATED IMPACTS AND MITIGATION MEASURES

A. Pre-Construction Phase

135. Prior to construction, the following measures will be implemented.

i) Institutional strengthening. (a) Two full-time PMO Environment Officers will be assigned to the project (potentially the same two officers who were assigned throughout the project preparation phase of this EIA) to coordinate EMP implementation. (b) Under the loan consulting services, the PMO will hire a loan implementation environment specialist (LIEC) to provide external support. (c) At the county level, the five Project Implementation Units (PIOs) for each county will include a full-time environment officer. The terms of reference for these personnel are in the EMP (Attachment 1). ii) Updating the EMP. In the event of any changes in project design, the EMP will be updated as needed, including mitigation measures and monitoring. This will be the responsibility of the PMO, PIOs, and design institutes. iii) Confirmation of land acquisition and resettlement. The LAR Plans will be updated with the final inventory and the results will be incorporated into the detailed designs. iv) Training in environmental management. The LIEC and personnel from provincial EPD and municipal EPBs will give training in implementation and supervision of environmental mitigation measures to contractors and construction supervision companies (CSCs). v) Grievance Redress Mechanism (GRM). The PMO and PIOs will implement the project GRM at least three months before the start of construction, to ensure that communities are well informed and have the opportunity to discuss any concerns (further to the public consultations already conducted for this EIA; Section VII). vi) Bidding document and contract documents. The EMP will be included in the bidding documents and contracts for procurement of civil works, goods and services. All contractors and subcontractors will be required to comply with the EMP. vii) Contractor obligations. In their bids, contractors will respond to the environmental clauses for contractual terms and EMP requirements. Prior to construction, each contractor will develop a site EMP, based on the project EMP (Attachment 1), and assign a person responsible for environment, health, and safety (EHS). The site EMP shall include the following: (a) site drainage and soil erosion protection; (b) spill control and management; (c) health and safety; (d) surface water and groundwater protection; (e) temporary traffic management; (f) construction site access control. The site EMP will be submitted to the environmental officers of each county PMO for approval, with support of the local EPBs.

B. Construction Phase

(1) Geology and Soil

136. Project construction may cause soil erosion, contamination, and compaction. Soil erosion may be caused by excavation of water diversion pipe trenches, stockpiles and spoil from earthwork during construction of embankments, river/channel regulation, and road re-laying after pipeline construction. Embankment construction may contribute to bank erosion and excessive sedimentation of surface water bodies. Contamination may result from inappropriate transfer, storage, and disposal of polluted earth, dredged sediment, petroleum products, chemicals, hazardous materials, liquids and solid waste.

137. According to the water and soil conservation plans (WSCPs), the natural soil erosion intensity in the five project areas is 500–850 tons per square kilometer per year. Moderate soil erosion rates are expected during construction when surface vegetation and soil are damaged or disturbed. Soil erosion can also occur after completion of construction where site restoration is inadequate. The most vulnerable soil erosion areas for the project are the construction sites, embankments, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. Estimated soil erosion amounts are shown in Table V-2.

Table V-2: Estimated Soil Erosion Amount for each Component during Construction (ton) Existing soil Project impact area Soil erosion due to Soil erosion due to County erosion subject to soil Project + existing 2 Project (t) (tons/km /year) erosion (ha) erosion combined (t) Gaomi 850 260.23 10,789 16,648 Huantai 450 22.52 46,709 53,629 Qingzhou 850 28.45 4,128 6,568 Shouguang 500 47.04 21,469 29,197 Changle 700 107.36 10,050 11,627 Total n/a 465.60 93,145 117,669 Source: domestic DEIAs and WSCPs. n/a=not applicable (values cannot be summed).

138. Earthworks. The draft FSR included a surplus of 8.0 million m3 spoil with no clear disposal mechanism. Following discussions with the PPTA team and EIA institute, excavation plans were improved and the surplus was reduced to 4.85 million m3. This is the amount of spoil remaining that requires disposal, after use for in-fill has been accounted for (Table V-5).

Table V-3: Earth Balance for Each Project Component (x10,000 m3)

Destination of disposal Excavation Borrow Disposal Site Filling earth Disposal nty Cou Earth earth earth Filling area site Judian wetland 785.21 449.78 105.87 271.3 7.1 264.2

ang River restoration 214.94 236.84 218.3 42.23 23.11 19.66 Shougu Subtotal 1,000.15 685.62 324.45 313.53 30.21 283.32 Three reservoir 21.03 17.79 0 3.24 0 3.24 connection Beiyang River 56.21 13.94 0 42.28 0 42.28 improvement

Qingzhou Water Diversion to 34.21 33.23 1.46 0.98 0 0.98 Bagouzi Reservoir Subtotal 111.45 64.95 1.46 46.5 0 46.5 Water diversion from Xiashan Reservoir to 111.87 107.17 0 4.7 4.7 0

Chengbei Reservoir Jucheng Reservoir 290.84 75.54 54.70 215.30 210.00 5.30 Gaomi expansion Three reservoir 32.62 30.42 0 2.20 1.11 1.09 connection Subtotal 435.33 213.13 54.7 222.2 211.11 11.09

Channel improvement 307.46 176.7 0 130.76 4.39 126.37 Water diversion to Mata 289.0 31.62 0 257.58 257.58 ‘Lake’ channels Huantai Subtotal 596.66 208.32 0 388.34 261.97 126.37

le Nanzai Reservoir 348.645 181.1589 0 168.6272 150.0 18.6272

Chang expansion Subtotal 348.645 181.1589 0 168.6272 150.0 18.6272 Total 2492.235 1353.1789 380.61 1139.1972 655.29 485.9072

139. The 4.85 million m3 spoil will disposed in designated spoil disposal sites (Table V-4) approved by the county Land and Resource Bureaus and EPBs. All sites have adequate capacity to receive spoil generated during project construction, have soil erosion protection plans, and will be rehabilitated once filled.

Table V-4: Approved Spoil Disposal Sites (m3) Item Gaomi Shouguang Qingzhou Changle Huantai South of Judian 1-West Shita Village; South of the 7 locations near the Site location wetland; west of 6 locations* 2-North Shita Village urban area county town No. 226 Highway Design 172,000 (1=134,000; 3 3,000,000 2,418,000* 210,000 3,180,000 capacity (m ) 2=38,000) Available 172,000 3,000,000 336,700* 210,000 3,180,000 capacity Distance to 2 km (from Judian 2-10 5-10 km 5 km 5-10 km works site wetland) Existing land State owned Collectively Collectively Collectively Collectively owned use owned owned owned Site Compacted with clay Compacted with Compacted Compacted Compacted with clay preparation clay with clay with clay Rehabilitation Yes Yes Yes Yes Yes plan 26 February 2015 Approval year 9 March 2015; 6 March 2015 (Gaomi EPB) (Sanitation 2014 (LRB) 2014 (county EPB) (and authority) county EPB Bureau) Approval Gaomi-EPB- 2015-01 Shouguang-EPB- Qingzhou-SB- Changle LRB- EPB-2014-53 number 2015-05 2015-04 2014/104 Soil erosion Yes Yes Yes Yes Yes protection plan *Sites as follows, with “design capacity / available capacity” in parentheses. 1–north of Juchenghe Reservoir dam wall (280,000 m3 / 71,000 m3); 2–north of Juchenghe Reservoir spillway (400,000 m3 / 47,500 m3); 3–Fengtai hill (700,000 m3 / 620,000 m3); 4–Xin Village (435,000 m3 / 408,000 m3); 5–Datougo Village (150,000 m3 / 3,000 m3); 5–Yahe site near Wangwu Reservoir (588,000 m3 / 112,400 m3). LRB = Land and Resources Bureau.

140. Measures for soil erosion control. Before construction, the contractor will be required to prepare a Site Drainage and Soil Erosion Management Plan to prevent soil erosion. The plan will include the following measures.

i) During embankment construction: (a) maintain slope stability at cut faces by implementing erosion protection measures such as terraces and silt barriers; (b) construct berms or drainage channels around the perimeter of the construction site to capture soil runoff and direct rainwater away; and (c) plan and implement construction in staged sections, with one section completed and stabilized before beginning the next. ii) Stabilize all cut slopes, embankments, and other erosion-prone working areas. iii) Stabilize all earthwork disturbance areas within 30 days after earthworks are completed. iv) Minimize open excavation areas during trenching and river regulation activities. v) Use appropriate compaction techniques for pipe trench construction. vi) Provide temporary detention ponds or containment to control silt runoff.

vii) Construct intercepting channels and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage or open ground for watering the vegetation. viii) Strip and stockpile topsoil, and cover or seed temporary soil stockpiles. ix) Limit construction and material handling during periods of rains and high winds. x) Properly slope or re-vegetate disturbed surfaces e.g. pipeline trenches and cut banks. xi) Protect slopes on both sides of embankment. xii) All dredged sediment, channel soil and spoil disposal sites, embankments, and revetments, will be rehabilitated once they are completed (or full in the case of the disposal sites). xiii) Landscaping will only use native plant species. xiv) Construction camps and storage areas will be located to minimize land area required.

141. A soil erosion inspection and monitoring program is defined in the five DEIAs and WSCPs. Internal inspection and monitoring will be conducted by contractors and CSCs. Compliance inspection and monitoring will be conducted semi-annually during construction by licensed institutes. Results will be submitted to the PMO, PIOs, local EPBs and WRBs for progress reports and acceptance of construction.

142. To reduce the risk of soil contamination from construction machinery, contractors will: i) store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas; ii) remove all construction wastes from the site to approved waste disposal sites; iii) establish emergency preparedness and response actions; iv) provide spill cleanup measures and equipment at each construction site; and, v) train contractors and crews in emergency spill response procedures.

(2) Hydrology, Water Quality and Water Availability

143. Excavation of pipeline trenches, and embankment construction could result in soil runoff to waterways, while inappropriate storage and handling of fuel, accidental spills, disposal of domestic wastewater from construction camps, and wash-down water for machinery and vehicles, could contaminate surface or groundwater. Construction wastewater will come from washing aggregates, pouring and curing concrete, cleaning of mechanical equipment and vehicles, and human waste. During construction there will be 10 construction sites in the five counties. Each site will generate about 6 m3/d construction wastewater. The peak work forces are estimated at 300, 350, 1,095, 300 and 1,000 workers in Shouguang, Changle, Gaomi, Qingzhou and Huantai, respectively. Daily domestic wastewater discharge and municipal solid waste (MSW) production is estimated as 0.12 m3 and 0.7 kg respectively per worker per day. Estimated volumes of construction and domestic wastewater are shown in Table V-5.

Table V-5: Wastewater and MSW Generated during Construction Item Shouguang Changle Gaomi Qingzhou Huantai Total # construction sites 3 1 4 2 2 12 # workers at peak construction 300 350 1,095 300 1,000 3,045 Construction wastewater (m3/d) 18 6 24 12 12 72 Domestic wastewater (m3/d) 36 42 131.4 36 120 365.4 Domestic solid wastes (t/d) 0.21 0.245 0.7665 0.21 0.7 2.1315

144. The following measures will be implemented to minimize water pollution.

i) During embankment and dredging, contractors will pump slurry to shore and properly dispose dredged sediment and other spoil. This will reduce the impact to water quality. ii) Contractors will develop actions for control of oil and other dangerous substances as part of their site EMPs. iii) Wastewater from construction activities will be collected in sedimentation tanks, retention ponds, and filter tanks to remove silts and oil. iv) All areas where construction equipment is being washed will be equipped with water collection basins and sediment traps. v) Fuel storage, maintenance workshop and vehicle cleaning areas must be stationed at least 500 m away from the waterbody. vi) Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces, and provided with bunds and cleanup installations. vii) Contractors’ fuel suppliers must be properly licensed. They shall follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods). viii) Earthworks along rivers, reservoirs and wetlands will be accompanied by measures to minimize sediment runoff into the water bodies, including sediment traps. ix) Labor camps will be located at least 500 m from waterbody. x) Portable toilets and on-site wastewater pre-treatment systems will be installed at construction camps along with proper maintenance protocols. xi) Water quality will be monitored by local EMSs during construction as per the EMP. xii) River embankment and dredging works shall be conducted in the dry season. Construction during the high-flow season (June to September) is prohibited. xiii) Coffer dam diversions will be used along small channels.

145. In addition to water pollution, it is possible that pipeline or embankment construction and/or dredging could require temporary interruptions in water supply to communities. This risk will be avoided and/or minimized by: (i) the use of coffer dams and temporary diversion channels, to maintain continued water flow while works are conducted; (ii) prior to any works along waterways, the contractor, construction supervision company, PIO Environment Officer, and county EPB, will collectively re-confirm the planned construction schedule and site EMP actions; (iii) local communities will be informed at least two days before any planned water interruptions and given time to store water; (iv) interruptions to water supply would not be longer than one (1) day; and (v) in the event of any accidental interruption (e.g. unintended damage of an existing water supply pipeline during excavation), downstream communities would immediately be informed and assisted with water supply until the structure is fixed. Overall, the risk of interrupted water supply is considered low because in most areas, water supply is from groundwater wells.

(3) Sediment dredging

146. The total volume of sediments to be dredged, including dry earth excavation, is about 14.14 million m3 for 18 channels and river sections, one wetland (Judian) and two reservoirs (Nanzai and Juchenghe) (Table V-6). The total dredging area is about 200 ha with a dredging depth of 0.2-1.0 m. Dredging will be staged over three years across the five counties.

Table V-6: Summary of Sediment Dredging Volume Length Width Mean Site 3 Method Disposal method (m ) (km) (m) depth (m) Huantai County Mata drainage Environmental; 2,890,000 153.34 ha 3.5 Landscaping, embankment ditches dry excavation Wu River 177,600 17.76 5-30 0.5 Dry excavation Landscaping, embankment Xiaofu River 184,900 23.12 6-15 0.8 Dry excavation Landscaping, embankment North Main Channel 22,900 3.82 6 1.0 Dry excavation Landscaping South Main Channel 40,100 8.02 5-6 1.0 Dry excavation Landscaping East Zhulong River 38,600 6.03 6-15 0.8 Dry excavation Landscaping East Fenhong River 27,500 5.49 10 0.5 Dry excavation Landscaping Laozi River 20,200 3.6 6-8 0.8 Dry excavation Landscaping Xiaofu River/East 5-6 0.5 25,900 10.36 Dry excavation Landscaping Fenhong River Dongyingnan 5 1.0 20,000 4.0 Dry excavation Landscaping Channel Qilipai Channel 11,300 4.71 3 0.8 Dry excavation Landscaping No.3 Channel 10,200 5.08 4-5 0.5 Dry excavation Landscaping Bochang Channel 11,200 3.2 7 0.5 Dry excavation Landscaping Guanzhuang 7 0.5 12,000 3.42 Dry excavation Landscaping Chhannel Yulong Channel 8,500 2.42 7 0.5 Dry excavation Landscaping Dazai Channel 16,600 8.32 4 0.5 Dry excavation Landscaping Reservoir intake 7,000 3.48 4 0.5 Dry excavation Landscaping Subtotal 3,524,400 112.23 - - Shouguang City Judian wetland 6,365,900 Environmental Yang River Incorporated in the Ta River Ta River 411,200 31.83 20-100 0.2 Dry excavation Landscaping, embankment Subtotal 6,777,100 Qingzhou City Beiyang River 64,000 6.45 40-50 0.2 Dry excavation Landscaping Changle County Nanzai Reservoir 3,775,300 Environmental Total 14,140,000

147. Dredging will disturb the channel beds in the project waterways and cause short-term increases in the levels of suspended solids. This may lead to the release of nutrients and/or hazardous pollutants, reduction of water transparency and dissolved oxygen, and algal blooms. Low light, reduced oxygen, and smothering or abrading silt may reduce plant growth and cause mortality of fish and sediment-dwelling (benthic) organisms. Dredging may release odorous gasses (hydrogen sulfide and ammonia) trapped in the sediments, since some sediments are anoxic with high organic content. Modeling conducted for the EIA estimated odor dispersion distances as 50-100 m around the dredging site and up to 200 m downwind of the temporary dredge storage and dewatering sites. Twenty-one villages (total population about 6,300) occur within 200 m of the river channels, and may be subject to dredge odors. In addition, inadequate management of dredging procedures and machinery could cause fuel spills into waterways. Finally, inadequate disposal of dredge sediments may cause leakage along transport routes and/or at disposal sites, leading to soil or water pollution.

148. Dredging impacts and potential construction impacts will be minimized as follows.

i) Planning. The design institute will develop a detailed dredging plan, emergency preparedness and response plan prior to commencement of dredging activities, to be approved by the local EPBs and the reservoir management authorities. ii) The technical requirements and mitigation measures for dredging will be included in the bidding documents and construction contracts. The contractor will be required to develop a sound environmental management plan, including dredging machinery maintenance, dredged material dewatering site management, internal monitoring procedures, emergency preparedness and response mechanism. iii) Second round of sampling. A second round of sediment sampling will be conducted before dredging begins. This was identified as a pre-requisite for approval of the domestic EIAs due to the lag time between sampling (2014) and start of project construction (~2016), during which site conditions may have changed. The second round of sampling will re-sample the original points as well as new sites. The local EPBs will supervise the monitoring and report on the results to PMO and ADB. iv) Timing. Dredging will only be conducted in the dry season (late September to late March), the time of lowest water depth and slow flow, to allow at least two months for the disturbed bottom sediments to settle and stabilize before the rainy season (June). v) Restricted extent of dredging at any one time. Dredging will take place section-by-section, to minimize the extent of the disturbance area at any one time. vi) Dredge method in sensitive sites. For Judian wetland, Nanzai and Juchenghe Reservoirs, and sections of river channels, an “environmental dredging method” will be applied. This method is implemented in two stages: dredging of the top layer of the sediments (about 0.4 m), then, dredging to target depth. The top layer of sediment will be transferred to geotextile tubes for dewatering by adding flocculants. The tubes will be stacked in the sediment pre-treatment facility for dewatering. Sediments below 0.4 m depth will be dredged and transferred to a temporary storage and sedimentation pond in the pre-treatment facility to keep the sediments and decant the water. The lower layer of sediments will be used for farmland fertilizer as they contain less pollutants and the top layer of dewatered sediment will be used for reconstruction of the channel banks (Figure V-1). The equipment used will include a specialized ‘cutter head’, which sucks up sediment and limits dispersion and therefore turbidity impacts. At Judian wetland, most earthworks will actually be dry excavation rather than wet dredging, as the works will be done in the dry season – this will be much less impacting than wet dredging.

Figure V-1: Scheme for Environmental Sediment Dredging

76 vii) Dredge method in other sites. For urban and rural artificial channels, conventional dredging (excavation) will be conducted. viii) On-site storage limited. Earth berms or drainage channels will be constructed around the perimeter of the dredge sediment storage and disposal sites to prevent washing away from rainfall. On-site storage will be limited to de-watering; the sediment will then be transported to the spoil disposal sites. ix) Treatment. Supernatant water from the dredge spoil will be treated to meet PRC Integrated Wastewater Discharge Standard (GB 8978-1996). x) Managing odor. Impacts will be minimized by: (i) timely community consultations to ensure awareness of the issue prior to dredging; (ii) rapid on-site treatment of dredge spoil to minimize time near communities; (iii) transport in sealed containers to avoid odor; (iv) minimizing the release of odors by dredging in short sections (<300 m) at any one time. Impacts will also be temporary as odors are dispersed. xi) Transport to disposal sites. Once de-watered, sediment will be transported in sealed containers to disposal sites to minimize odor and leakage onto roads. xii) Disposal and re-use of the de-watered sediment. Pollutant concentrations in the sediments meet the PRC Control Standards for Pollutants in sludge for Agricultural Use (GB4284-84) and Grade I of the PRC Soil Quality Standard (GB15618-95), and the supernatant liquid from the sediment meets PRC Standard for Identification of Hazardous Wastes - Identification for Extraction Toxicity (GB5085.3-2007) (Section IV). The de-watered sediment will be used in farmland, landscaping, and soil reclamation (Table V-6). In the event of any spoil exceeding the standards, the spoil would be categorized as a “hazardous waste” and require further assessment and specific disposal methods by a qualified center, the Shandong Provincial Hazardous Wastes Disposal Center (under the Shandong Environment Protection Department). Spoil would be disposed at specialized sites in accordance with PRC Pollution Control on the Security Landfill - Hazardous Wastes (GB 18598-2001).

(4) Air Quality

149. Air pollution sources include: (i) dust from earth excavation, filling, loading, hauling, bare earth surfaces, uncovered construction areas, and vehicle movements on unpaved roads, especially in windy days (spring); (ii) aggregate preparation and concrete-mixing; and (iii) vehicle and machinery emissions (gaseous CO, CH and NO2). Repaving roads after pipe laying will also produce emissions. During the asphalt heating and mixing process, the fuel burning will produce smoke, and the asphalt will produce flue gas. Modern asphalt mixing equipment used in the PRC releases typical flue gas emission concentrations of 30 mg/m3, which complies with discharge requirements of 80-150 mg/m3 of the PRC Atmospheric Pollutant Emission Standard (GB16297-1996) and PRC Ambient Air Quality Standard (GB3095-1996), which limits the concentration of benzopyrene at 0.01 µg/m3 (at 100 m downwind from the asphalt mixing station). These various sources of air pollution could affect nearby sensitive receivers, including villages, and residential areas identified in Section IV. Impacts associated with odors from sediment dredging are addressed in Section V.B.3.

150. The quantity of dust generated will depend on wind, humidity of the material and earth, and state of site. For the project area it was estimated that under general on-site conditions (average wind speed 2.5 m/s) dispersion distance is 150 m downwind. For dust generated by transporting earth and other construction materials, the impact zone may exceed 60 m each side of the route.

151. Mitigation measures to reduce impacts on air quality are as follows. i) Spraying water daily on construction sites where fugitive dust is being generated.

ii) Locating asphalt plants and mixers >500 m downwind from the nearest residential areas and other sensitive receptors. iii) Dust suppression near sensitive receptors e.g. schools, hospitals, residential areas. iv) Storing petroleum or other harmful materials in appropriate places and covering to minimize fugitive dust and emission. v) Covering materials during truck transportation, in particular, fine material, to avoid spillage or dust generation. vi) Ensure vehicle and machinery emissions comply with PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005. vii) Timely monitoring of air quality and inspections during construction, as defined in the project EMP (Tables EMP-6 and EMP-7).

(5) Noise

152. Construction will involve excavators, bulldozers, scrapers, dredgers, concrete-mixer, trucks and other heavy machinery. Noise during pipeline construction will be generated by trench excavators, rollers and other compaction machine. Noise will be temporary and localized. Estimated construction noise values (at 5 m distance from the machineries and vehicles) are shown in Table V-7.

Table V-7: Testing Values of Construction Machinery Noise No. Machine Type Maximum Sound Level Lmax (B) 1 Excavator 85-95 2 Concrete mixer 86 3 Bulldozer (100 horse-power) 78-96 4 Scraper 85-95 5 Heavy truck 88-93 (speed up), 84-89 (steady speed) 6 Medium-duty truck 85-91 (speed up), 79-85(steady speed) 7 Drilling machine 96 8 Wheel loader 85-92 9 Vibrating roller 86 10 Two-wheeled two-vibrating roller 81 11 Asphalt concrete paver 82 12 Generating set 88-92

153. Estimating noise levels. Construction equipment is a point sound source. The predictive model applied in this project is: R LL 20lg i  L i 0 R0 Where, Li and L0 are equipment noise sound levels at Ri and R0 respectively. ΔL is additional diffusion attenuation produced by barriers, vegetation and air.

As for the impact of multiple construction machineries on a certain future position, sound level superposition is needed: L 10lg  10 1.0 Li

154. Prediction results. Noise levels at different distances were derived after calculating the impact scope of equipment noise during construction as defined in Table . The PRC Standard of

Noise Limits for Construction Sites (GB12523－90) specifies the noise limit in Class II areas as 70 dB (A) during daytime and 55 dB (A) during nighttime. The standard compliance noise impact scope (m) of different machineries is listed in Table V-8.

Table V-8: Noise Values of Construction Machineries at Different Distances dB (A) Distance to Machinery Machinery Name 15m 20m 40m 60m 80m 100m 130m 150m 200m Excavator 71 69 63 59 57 55 53 51 49 Bulldozer 72 70 64 60 57 56 54 52 50 Loader 61 59 53 49 47 45 43 41 39 Heavy truck 69 67 61 57 55 53 51 49 47 Drilling machine 72 70 64 60 57 56 54 52 50 Concrete-mixer 71 69 63 59 57 55 53 51 49 70 (daytime) Applicable Standard 55 (nighttime)

155. The noise impact distances during construction for compliance with the PRC Standard of Noise Limits for Construction Sites (GB12524-90) are up to about 20 m away from the source during the day and 130 m at night (Error! Reference source not found.). Construction materials, urplus spoil and construction wastes will be transported to and from the construction sites during the average 10 hour work-day for the construction season of about 250 days per year in the project area for about four years. As a result, urban residential areas and villages through which haul roads pass and which are adjacent to construction sites will frequently experience noise levels at 70–80 decibels in the audible scale. Activities with intensive noise levels not only will have an impact on the residents, but also may cause injury to construction workers operating the equipment.

156. Mitigation measures. The following measures will be implemented to comply with PRC construction site noise limits and to protect sensitive receptors (see Chapter IV).

i) Ensure that noise levels from equipment and machinery conform to PRC standard of GB12523-90. Properly maintain construction vehicles and machineries to minimize noise. ii) Apply noise reduction devices or methods for high noise equipment operating within 200 m of sensitive sites e.g. schools, villages, residential areas (Tables IV-53 to IV-57). iii) Locate high-noise activities (e.g. rock crushing, concrete-mixing) >1 km from sensitive areas. iv) Prohibit operation of high-noise machinery, and movement of heavy vehicles along urban and village roads, between 21:00 and 07:00, in accordance with provincial regulations. v) Take special caution at construction sites that are close to such sensitive sites as schools and hospitals. When construction activities are unavoidable during the school seasons, the use of heavy equipment will be restricted to weekends and non-class hours. vi) Place temporary hoardings or noise barriers around noise sources during construction. vii) Monitor noise at sensitive areas at regular intervals (EMP Tables 6 and 7). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation.

viii) Conduct regular interviews with residents adjacent to construction sites to identify noise disturbance. Community feedback will be used to adjust work hours of noisy machinery.

(6) Vibration

157. Vibration impacts are expected during river improvement works, including vibrations from pilling, pipeline trench compaction, and embankment stone crushing. Mechanical vibration may be sudden and discontinuous, which can cause stress among workers and communities. To address these issues: (i) piling and compaction operations will be prohibited at night; (ii) communities will be consulted prior to large earthworks to ensure they are informed, and, to avoid sensitive timing e.g. exams at nearby schools or festivals.

(7) Solid Waste

158. Solid waste will be generated from construction waste and worker camps. About 20% of 3,045 workers in the five project counties will live in rented apartments and 80% in work camps. Workers are estimated to produce an average of 0.7 kg/day garbage per worker (2.1315 t/d in total; Table V-4). Covered garbage bins will be installed in the camps. It will be the responsibility of the construction contractors to provide sufficient garbage bins at proper locations and ensure they are protected from birds and vermin and emptied regularly (using the local MSW collection systems). Construction waste will be regularly transported off-site by the contractor for disposal at disposal sites approved by the local LRBs (Table V-3) in compliance with PRC Law on Prevention and Control of Environmental Pollution by Solid Waste and scrap material and demolition waste disposal standards by the Ministry of Housing and Urban-Rural Construction.

(8) Ecological resources

159. There are no protected areas in the project area nor any documented critical habitats or records of rare, threatened, or protected species. Dredging and embankment may result in the removal of some planted trees alongside easements; these are mainly planted stands with low ecological value. Small areas of secondary vegetation may be impacted along some roadsides and/or riverbanks. Ecological resource protection measures in the EMP are as follows.

i) As far as possible, clearance of vegetation will be avoided. ii) Prior to construction, vegetation and habitats will be clearly demarcated, as no-go zones for workers and machinery. iii) In compliance with the PRC Forestry Law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation. iv) If clearance is required the area will be immediately re-vegetated afterward. Re-vegetation of construction sites and supplementary planting of aquatic vegetation in Judian wetland is part of Output 1.1.1: the total proposed re-vegetation area in the five counties is about 763 ha, comprising about 336 ha terrestrial vegetation (in the five counties) and 428 ha aquatic vegetation (Judian wetland) (Table III-2). v) All re-vegetation will use native plant species of local origin, to maintain genetic fitness and reduce the risk of introducing non-local and invasive species.

160. It is possible that increased impoundment at Judian wetland may: (i) impact native species which rely on seasonal changes in water levels; (ii) encourage disease vectors which thrive in flooded conditions; and/or (iii) support the spread of invasive species. These risks are assessed to

80 be low, because the site is already permanently inundated (albeit at lower water levels), as well as the following reasons:

Native species – (i) there are no known plant or animal species of conservation significance that would benefit from seasonal drying out; (ii) in contrast, there are several bird species likely to benefit from a flooded regime with autumn drawdown (as is planned by the project), which will support new reed growth and aquatic invertebrates (food for some species) in spring. These include species of conservation concern which occur elsewhere in Shandong Province. It is possible the project would help provide new habitats for them.

Disease vectors – (i) a flooded regime may retain fish and invertebrates over the winter, which means there will be predators of mosquito larva and pupae; (ii) if the site is dried out (presumably in winter) there is likely to be shallow water in the spring and early summer which is more likely to become a mosquito breeding area; (iii) malaria no longer occurs naturally in Shandong Province; (iv) Japanese encephalitis is present in Shandong but usually at ‘low prevalence’ – below 0.5/100,000 (Wang et al. 2009, Gao et al. 2010; although an outbreak in 2013 resulted in 407 confirmed cases and 11 deaths, Tao et al. 2014).12 The PRC has a very successful immunisation programme for Japanese encephalitis - Shandong began inoculating children in 1986 (Yin et al. 2010); (iv) there are other freshwater wetlands in Shandong, including a large newly created area within the Yellow River Delta National Nature Reserve, yet there do not appear to be reports of disease problems from these areas; (v) Schistosomiasis is not recorded from Shandong as the winters are too cold for the snail Oncomelania hupensis which is the intermediate host of Schistosoma japonicum; and (vi) rodents – there are a variety of rodent-borne viral diseases in Shandong such as Hantavirus and scrub typhus but it seems unlikely that these will be associated with the creation of a wetland at Judian – Apodemus agrarius is the typical host for Hantavirus and ‘Humans usually acquire hantavirus infection by contact or inhalation of aerosols and secretions from infected rodent hosts’.

Invasive species – (i) Shandong has more invasive plant species than any other province in the PRC (Axmacher and Sang 2013) and 39% of the provincial flora is comprised of alien species (Wu et al. 2008) – it seems unlikely the existing wetland will add to these; (ii) all project activities will only use native plant species.

(9) Social Issues

161. In Changle County, the project will involve permanent land acquisition and house demolition; in Shouguang, permanent land acquisition but no house demolition. In Gaomi, the project will involve only 0.095 ha (1.42 mu) of permanent land acquisition and no house demolition. The Huantai and Qingzhou components will only involve temporary land occupation. The total area of permanent land acquisition is 93.86 ha (1,407.86 mu). All are collective land, including farmland, forestry land, house plot and other land, accounting for 39%, 18%, 4.5% and 39%, respectively. The total area of temporary land acquisition is 626.56 ha (9,398.37 mu), which are all collective land. The total area of houses/buildings to be demolished is 47,781 m2, comprising residential houses (44,923.62 m2) and rural shanties (2,857 m2). A total of 1,697 persons from 446 households

12 Axmacher, J.C. & Sang, W.G. 2013. Plant invasions in China – challenges and chances. PLoS ONE 8(5): e64173 doi:10.1371/journal.pone.0064173. Gao, X,et al. 2010. The Neglected Arboviral Infections in Mainland China. PLoS Neglected Tropical Diseases 4(4): e624. doi:10.1371/journal.pntd.0000624. Tao et al. 2014. Molecular epidemiology of Japanese encephalitis virus in mosquitoes during an outbreak in China, 2013. Scientific Reports 4:4908, DOI: 10.1038/srep04908). Wang, H.Y.; L, Y.X.; Liang, X.F.; Liang, G.D. 2009. Japanese encephalitis in mainland China. Japanese Journal of Infectious Diseases 62: 331-336. Wu, T., et al. 2008. Floristic analysis and distribution of alien plants in Shandong Province, eastern China. Frontiers of Forestry in China 3: 219-225.

will be affected, including 136 households affected by land acquisition, 191 households by house demolition, and 119 households by both (Table V-9).

Table V-9: Impact of Land Acquisition and Resettlement. ( HH = household) Item Unit Changle Shouguang Huantai Qingzhou Gaomi Total Affected town/urban sub-district No. 1 1 - - - 2 Affected village/community No. 4 1 - - - 5 Affected village group No. 9 7 - - - 16 Total mu 1,026.71 379.73 0 0 1.42 1,407.86 Collective land mu 1,026.71 379.73 0 0 1.42 1,407.86 Farmland mu 530.29 14.1 0 0 1.42 545.81 Forestry land mu 254.45 0 0 0 0 254.45 Permanent land House plot and mu acquisition 63.85 0 0 0 0 63.85 construction land Enterprise land mu 0 0 0 0 0 0 Other land mu 178.12 365.63 0 0 0 543.75 State land mu 0 0 0 0 0 0 Temporary land Collective land mu 674.87 2,754.0 2,004.0 1,258.8 2,706.65 9,398.37 acquisition Rural house m2 44,923.62 0 0 0 0 44,923.62 Acquisition of Rural shanty m2 2,857 0 0 0 0 2,857 residential Urban house m2 0 0 0 0 0 0 houses and Urban shanty m2 0 0 0 0 0 0 structures Urban 2 m 0 0 0 0 0 0 enterprise/shop HH 136 0 0 0 0 136 Land acquisition person 530 0 0 0 0 530 Affected rural HH 191 0 0 0 0 191 House demolition HHs and persons person 668 0 0 0 0 668 Land + house HH 119 0 0 0 0 119 acquisition person 499 0 0 0 0 499 Affected urban Acquisition of HH 0 0 0 0 0 0 HHs, persons houses person 0 0 0 0 0 0 HH 467 0 0 0 0 467 Total affected HH, persons person 1,697 0 0 0 0 1,697 No. 13 0 0 0 0 13 Total of stores/shops* person 13 0 0 0 0 13

(10) Community and worker health and safety

162. Traffic congestion and risk of accidents will increase with construction traffic, causing temporary inconvenience to traffic, residents, commercial operations, and institutions. Construction may cause unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply, drainage, heating supply and gas supply, as well as to underground power cables and communication cables (including optical fiber cables). Contractors will implement the following EMP measures to reduce risks to community health. i) Traffic management. A traffic control and operation plan will be prepared, to be approved by the local traffic management administrations before construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed.

ii) Underground facilities survey and protection. Pipeline construction activities will be planned so as to minimize disturbances to utility services. Three-dimensional detection of underground facilities will be conducted before construction where appropriate. iii) Information disclosure. Villagers, residents and businesses will be informed in advance through media and information boards at construction sites of the construction activities, given the dates and duration of expected disruption. iv) Construction site protection. Clear signs will be placed at construction sites in view of the public, informing people about the project GRM, and warning people against potential dangers such as moving vehicles, hazardous materials, and excavations, and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate. 163. The construction industry is considered to be one of the most hazardous industries. Intensive use of heavy construction machinery, tools, and materials present physical hazards including noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, and chemical hazards such as toxic fumes and vapors. Contractors will each prepare an environmental, health and safety management plan (Attachment 1 - Table EMP-2), which will include the following.

(i) Provide a clean and sufficient supply of fresh water for construction sites and camps. (ii) Provide adequate number of latrines at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state. (iii) Garbage receptacles at construction sites and camps will be set up, which will be periodically cleared to prevent outbreak of diseases. (iv) Provide personal protection equipment to comply with PRC regulations e.g. safety boots, helmets, gloves, protective clothing, goggles, ear plugs. (v) Emergency preparedness and response plan for accidents and emergencies, including environmental and public health emergencies associated with hazardous material spills and similar events. These plans will be submitted to the local EPBs for review and approval. Emergency phone link with hospitals in the project towns will be established. A fully equipped first-aid base in each construction camp will be organized. (vi) A records management system that will store and maintain easily retrievable records against loss or damage will be established. It will include documenting and reporting of occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits. (vii) Occupational health and safety matters will be given a high degree of publicity to all work personnel and posters will be displayed prominently at construction sites. (viii) All workers will be given basic training in sanitation, general health and safety matters, and work hazards. An awareness program for HIV/AIDS and other communicable diseases will be implemented for workers and the local communities. (ix) Core labor standards will be implemented. Civil works contracts will stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men; (iii) pay equal wages for work of equal value, and pay women’s wages directly to them; and (iv) not employ child or forced labor. Specific targets for employment have been included in the gender action plan (GAP).

(11) Physical Cultural Resources

164. No cultural heritage or archaeological sites are known from the project areas. However, construction activities have the potential to disturb unknown underground cultural relics. The EMP mitigation measures include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The local Cultural Heritage Bureau, PMO, and PIO will be promptly notified. Construction will resume only after investigation and with the permission of the appropriate authority. The clause for protection of unknown underground cultural relics will be included in construction contracts.

C. Operational Phase

(1) Judian wetland – management of water levels and quality

165. The project will improve management of the wetland to benefit water storage and quality (see Tables IV-3b and IV-3c for existing water quality data). To achieve this the project will: (i) intercept wastewater from nearby villages which currently discharge directly into the inflow rivers to the wetland; (ii) install mechanical aeration equipment in the inflow river sections, to increase dissolved oxygen levels and strengthen bio-processing for water purification; (iii) establish a specific management agency for the wetland, under the Huantai Water Resources Bureau (WRB); (iv) incorporate the wetland in the county water quality monitoring program of the Huantai WRB; and (v) conduct controlled winter harvesting of the reedbeds and vegetation in the constructed wetlands, to manage nutrient levels, remove excess total nitrogen and phosphorous (accumulated in the vegetation biomass) and benefit local communities, which utilize and/or sell the dried reed materials. A project assurance was also provided by the SPG that no commercial development, especially large-scale infrastructure, will be built within the wetland which might affect the wetland’s effectiveness for water storage and water quality, without prior review by the SPG and ADB.

(2) Maintenance of embankments and dredged channels

166. The newly embanked and dredged channels will have improved flow. Without maintenance, natural debris and/or litter will gradually accumulate and embankments may fall out of repair. The county water resource bureaus are responsible for the maintenance of all channels and waterbodies. The newly repaired and/or built structures will be integrated into the existing work programs and budgets of the bureaus. Maintenance will include: regular inspection of the embankments for stability, condition of habitat features and tree plantings, and the presence of illegal structures (which would be removed).

(3) Operation of pump stations

167. Three pump stations will be constructed, one along the Ta River (Shouguang County), one at Juchenghe Reservoir (Gaomi County) and one at Nanzai Reservoir (Changle County) (Table III-3). Operation will generate noise and odor (ammonia and hydrogen sulphide). To reduce noise, each station will install low-noise equipment, submerged pumps, and thick walls. All pump stations have been situated to be at least 50 m from the nearest sensitive receptor (household, school or other). Station operators will maintain the equipment in good working condition as part of standard operating procedures. With these measures, noise levels at the boundaries of the facilities were modeled to be 55 dB(A) in the day time and 47 dB(A) at night: these levels comply with Grade II noise standards [60 dB(A) in the day time and 50 dB(A) at night] of PRC Noise Standards at the Boundary of Industries and Enterprises (GB 12348-2008). For odor, levels of ammonia and hydrogen sulphide emission were modeled and will be less than 1.5 mg/m3 and 0.06 mg/m3

84 respectively at the boundaries of the pump stations. This complies with Grade II of PRC Emission Standards for Odor Pollutants (GB14554-93).

(4) Nanzai and Juchenghe reservoirs and dam safety panel

168. The project includes expansion of the storage capacity of two reservoirs, Nanzai and Juchenghe, both located in settled areas. Planned project construction works involve excavation and lining of the reservoir bed (to increase storage volume), heightening and strengthening of the dam walls (to cope with the increased water volume), and construction of spillways and/or water discharge tunnels (Table III-3). Two potential issues were assessed: (i) impacts of inundation; (ii) dam safety.

Impacts of inundation. For Nanzai Reservoir, the expansion will result in the inundation of 955.5 mu (63.7 ha) of land. A total of 1,026.71 mu (68.45 ha) will be permanently acquired for the expansion, covering this land. This is currently collective (village owned) land and comprises: 530.29 mu farmland, 254.45 mu forestry land, 63.85 mu house plots and 178.12 mu other (Table V-9). A resettlement plan including compensation has been prepared in accordance with ADB and PRC policies. For Juchenghe Reservoir, the expansion will be achieved by dredging (deepening) of the reservoir. There will be no new inundation area or permanent land acquisition.

Dam safety. A dam safety assessment was conducted by the FSR design institute and PPTA team, including structural integrity, existing emergency plans, and potential issues with the project designs. In addition, PRC law and ADB’s SPS requires that for large projects on dams or reservoirs, designs are reviewed by an independent expert panel. A panel of four national experts was convened by the SPG to review the project designs, which concluded that: (i) probabilities of dam failure for both reservoirs are very low (1/8,560,000); (ii) in the event of a dam failure, the width of dam-break and maximum release flows for Nanzai Reservoir would be 160 m and 4,730 m3/s respectively, and for Juchenghe Reservoir, 45 m and 1,056 m3/s respectively; and (iii) in the event of dam failure, the time for the flood peak to reach Changle Town (from Nanzai Reservoir) and the nearest settlement (from Juchenghe Reservoir) would be 1 hour and 12 hours respectively. Both teams independently concluded that the dams have well established emergency response plans, and, the project designs adequately address the need for improved structural integrity to deal with increased water volumes. During the project construction and operation phases, the panel will convene at least twice a year to assess project progress and any issues. The findings of the panel will be included in the semi-annual environment reports to ADB.

169. Maintaining minimum ecological flows. The official operational guidelines for Nanzai and Juchenghe reservoirs require that minimum ecological flows of 0.98 m/minute and 0.29 m/minute respectively are maintained. Currently, these flow requirements are not fully implemented. This lack of compliance is a similar situation in many reservoirs in the PRC, and is an issue which has received some attention in national websites as contributing to the decline of the PRC’s rivers. The following measures are being taken in the project: (i) during project operation, official flow requirements will be complied with and checked as part of the overall dam panel monitoring and assessment; (ii) the cost of annual assessment is included in the EMP (Table EMP-10); and (iii) compliance with official flow guidelines is included as a project-specific assurance (Section X).

F. Indirect, Induced and Cumulative Impacts

170. Indirect impacts are adverse and/or beneficial environmental impacts which cannot be immediately traced to a project activity but can be causally linked. Induced impacts are adverse and/or beneficial impacts on areas and communities from unintended but predictable

85 developments caused by a project which may occur later or at a different location. Cumulative impacts are the combination of multiple impacts from existing projects, the proposed project, and anticipated future projects that may result in significant adverse and/or beneficial impacts that would not be expected in case of a stand-alone project.13

171. Indirect impacts. A potential indirect risk is that the hydrology and ecology of river and channel sections downstream of the project facilities are negatively affected, either due to the new project facilities, and/or changes in flow allocations which occur after the project. The physical connection of river systems to be achieved by the project channels will result in water mixing, which may cause the spread of invasive species or disease vectors. Reduced seasonal water allocation might create risks for downstream environment-related livelihoods e.g. seasonal water requirements for agriculture. These risks are considered minimal because:

(i) the flow regimes of all waterbodies in the project area are already highly regulated, due to upstream dams and numerous culverts and gates along all rivers; (ii) the modified nature of the waterbodies, which are highly polluted and already subject to high levels of human use; (iii) downstream flow allocations will not be reduced due to the project. Water balance analyses (Section IV.C) indicate that downstream flow allocations will be maintained or increased. In Shouguang and Huantai Counties, Judian wetland and Mata ‘Lake’ drainage channels will respectively release 6.7 million m3 and 3.4 million m3 water to downstream river sections, and which will be one to two grades cleaner than present (improved from Grade V to IV or III). In Gaomi County, annual water transfer from Xiashan Reservoir to downstream users will be increased from 14 million m3 (current) to 33.44 million m3 (a gain of 19.44 million m3). This is the largest reservoir in Shandong Province (storage capacity 1.405 billion m3), and the increase represents only 1.38% of total storage capacity. Also the existing open channel for water diversion is aged with annual leakage an evaporation amount of about 4.2 million m3 (30% of total 14 million m3 water diversion), the proposed pipeline (DN 1,400 mm) will reduce this water loss; (iv) downstream flow allocations, especially in the dry season, will not be reduced; (v) improved storage capacity will enable improved flood control and reduce the incidence of downstream flooding; and, (vi) the river systems in the project area are located on low coastal floodplains and in close proximity. They are not isolated ecological systems, and overland flow and water mixing almost certainly occurs during floods.

172. Induced impacts. Two induced impacts might arise from the increase in surface water availability to be achieved by the project. First, the increased availability of water for communities, agriculture and industry may result in increased wastewater production. This is not considered an issue as (i) the increased surface water will substitute groundwater use, and overall water allocations will remain largely unchanged; and (ii) there are 11 existing WWTPs in the five project counties (Table III-4) which do not yet utilize maximum capacity. Second, expansion of Nanzai Reservoir (Changle County) will enable increased dry-season flows, which will benefit agriculture and domestic use.

173. Construction-related cumulative impacts. Multiple development and construction activities are being implemented in the project counties. Together with the existing project, these may result in cumulatively larger amounts of noise and dust generation, traffic congestion, and

13 ADB. 2011. Sourcebook for Safeguard Requirement 1: Environment. ADB, Manila.

86 disturbance to communities. The exact locations of other planned construction projects over the next five years are unknown. However, as and when these other projects begin, and should they overlap closely with the current Project, the following mitigation measures will be implemented to minimize cumulative impacts: (i) coordination between projects to share road access and borrow and disposal sites; (ii) sharing of any associated facilities (e.g. pipelines, easements) to avoid repeated excavation of the same alignments; (iii) coordinated traffic management plans; (iv) participatory planning with local communities; and (v) training of workers to minimize social disturbance and cultural conflict.

174. Operational-related cumulative impacts. These comprise three main areas of consideration: (i) altered surface water flows and allocation; (ii) reduced demand on groundwater; and (iii) reduced occurrence of new ground subsidence (caused by over-extraction of groundwater). For (i), by 2020 the Project will result in a total annual increase in surface water supply of >152 million m3 across the five Project counties. There are no county-wide master plans which include water balance assessments, and which might therefore indicate the cumulative context of the Project benefits (versus the impacts and benefits of other initiatives). However, the Shandong Province Water Conservation Master Plan, and all county-level water plans, emphasize the efficient storage, use, and allocation of surface water resources. It is reasonable to assume that the cumulative impacts of the Project and other government initiatives for water management will result in improved efficiency of surface flows and allocation. For (ii) and (iii), a key objective of all groundwater related efforts in Shandong is to reduce demand on groundwater and the occurrence of new land subsidence. Existing government efforts are already resulting in the closure of groundwater wells. It is expected that the current project will result in the closure of other wells at the end of the five years. Cumulatively, groundwater use and land subsidence is expected to be reduced.

G. Climate Change and Greenhouse Gas (GHG) Emissions

175. The threat presented by the project to climate change: contribution to GHG emissions, carbon sequestration, and net emissions. Project GHG emissions will be generated during construction (vehicles, machinery, workers) and operation (electricity use at the three pump stations, emissions of station vehicles, and emergency generators during power black-outs). Electricity will be supplied through the municipal grid. The SPS requires that estimates of GHG emissions are made for projects which may emit >100,000 t CO2e per year. A course estimate of key project GHG emissions was derived using the following assumptions: construction – three-year full schedule (project is five years but peak construction intensity will be less) employing 3,045 full-time workers, construction vehicles, and generation of construction waste; and operation – electricity use of the pump stations and emissions of 5 commercial vehicles, for the first 10 years of operation (Table V-10). This is not a detailed project GHG inventory and almost certainly under-estimates total project GHG emissions. Nonetheless, after 10 years of construction and operation, the total estimated emissions are only one-third of the level defined by ADB as significant, and are small compared with the annual emission of high-risk projects listed by the ADB Environment Safeguards Good Practices handbook (ADB 2012, pp.59–62).

Table V-10: Course Estimation of GHG Emission by the Project Construction period CO2 equivalent (t CO2e) Workers (920) – consume 1 kg meat/d for 3 years 5,180 Articulated truck (100 t) – total100,000 km 2,000 Light commercial truck (10t) – total100,000 km 13 Construction wastes (10,000 t) 2,000 Operation (first 10 years)

Pump electricity consumption (assume 250,000 kWh/pump/year) 2,650 Pumping station vehicles (10 light vehicle ×10,000 km/year) 282 Total GHG emissions for 10 years 12,125 Total GHG emissions per year 1,213 Note: estimated using online GHG calculator (www.carbonneutral.au).

176. Carbon sequestration and net project GHG emissions. The total proposed re-vegetation area in the five counties is about 763 ha, comprising about 336 ha terrestrial vegetation and 428 ha aquatic vegetation (Table III-2). National estimates are not available for carbon sequestration by grasslands and aquatic vegetation, and for the current calculation, only the replanting area for woody plants (i.e. trees and bushes) was used, which is 181.19 ha (Table V-11). In the PRC, annual carbon sequestration capacity of forest is estimated to be 0.3-12 t C/ha14 depending on forest type, species, and age, as well as soil, water and weather (average annual sunshine hours, rainfall and temperature). Considering the weather conditions of central Shandong Province, the value of 0.8 t/ha.yr15 was applied for the calculation of carbon sequestration for the project. It is estimated the project tree and shrub planting will achieve 145 tons of carbon sequestration per year (Table V-11). Assuming project GHG emissions of 1,213 t CO2e per year (Table V-10), the project will result in net GHG emissions of 681 tons CO2e per year (i.e. 1,213 minus 145). This is a coarse estimate and the subtraction of carbon sequestration does not account for other, more harmful GHG emissions from construction and operation. Nonetheless, these figures are magnitudes of scale lower than the level of 100,000 t CO2e per year.

Table V-11: Preliminary Calculation of Carbon Sink from Re-vegetation Area of Area of Total area of tree Carbon Sink Carbon Sequestration County Tree(ha) bushes (ha) and bush (ha) (t/ha/yr) Potential (t/year) Gaomi 0 0 0 0 Shouguang 20.89 84.7 105.59 84.5 Qingzhou 14.33 6.47 20.8 16.6 0.8 Changle 1.6 0.47 2.07 1.7 Huantai 25.28 27.45 52.73 42.2 Total 62.1 119.09 181.19 145.0

177. Climate change risk for project viability: projections and adaptation. A climate risk vulnerability assessment (CRVA) was conducted to identify the threat that climate change presents to the viability of the project, assuming a design life of 30-40 years. Meteorological records from 1951-2008 and the provincial “Strategy for Combating Climate Change” (issued 28 April 2009) were reviewed, and global circulation models and climate predictions were downscaled to the project area using the software AWARE and ADB ‘Climate Change Assessment Tool’ (Yeager and Zhou 2014).16 From 1952-2008, mean temperatures increased 0.15℃ every 10 years in Shandong Province (0.663℃/10 years for Weifang-Zibo Area)17, while mean annual precipitation decreased 17.1 mm/10 years (18.7 mm/10 years for Weifang-Zibo Area). Climate modeling predicted that: (i) mean annual temperature will increase 0.5-1.3℃ from 2010-2020 and 1.5-2.7℃ by 2050; (ii) by 2050, annual precipitation will decrease 9.5-12%; (iii) variability in precipitation will increase; and (iv) storm severity will increase. The assessment identified that increasing flood volumes could exceed

14 Carbon sequestration capacity comparison. May 2011. http://www.carbontree.com.cn/News show asp ?bid=5725 15 PRC Manual for Forestry Carbon Sink Calculation. See: http://wenku.baidu.com/link?url=EKRakZpMokRfThhm7e9bnHd-1XQEiPpFsrOd9cPgpC7cB1ivxSO2AtYmeMGvfbIGmO nfbMsU3azEDIuDT9XLk9_7fJ0FH8iqX_nfa2vahHa 16 Yeager, C. and Y. Zhou. 2014. Assessing Climate Change Risks in PRC and Mongolia. ADB, Manila. 17 Wu, Sun, Chen and Xu. 2012. Analysis on Climate Change in Weifang Area. http://www.docin.com/p-700617062.html

88 the flow capacity of embankments, channels, pipelines, and the three project pump stations.

178. To accommodate this, all structures will be constructed to a flood protection standard of one in 20-50 years, and embankments have been designed to be porous for improved infiltration. Overall the existing project design, which is focused on water conservation and management, is strongly oriented to achieve resilience to climate impacts: increased storm water retention and improved water monitoring and allocation will strengthen water security; channel dredging and embankment will improve water flows and reduce flood risk; increased water storage in Nanzai and Juchengu reservoirs will reduce the risks of drought due to reduced precipitation; the pilot on water-smart greenhouses will demonstrate how food security can be maintained with less water; and, training in water conservation and wetland management will help secure freshwater resources in a large wetland, Judian.

VI. ALTERNATIVE ANALYSIS

179. Alternative methods and designs were identified and compared against technical, economic, social, and environmental criteria for each project component. The primary objective with respect to environmental criteria was to identify options with the least adverse environmental impacts and maximum environmental benefits. The following environmental and socio-economic factors were used in the analysis: (i) LAR impact; (ii) minimization of village and community disturbance; (iii) adaptation to local context (climatic constraints, ground subsidence etc); and (iv) potential impacts on surface water bodies. Alternative analyses for embankment designs, methods for sediment dredging, and pipe materials and approaches for water diversion, are described below.

A. Alternatives for Gaomi Water Diversion

180. Two alternatives (Table VI-1) were compared for the water diversion scheme. Option II (new pipeline laying) was recommended by the design institute and PPTA consultants due to lower cost, water loss, less permanent land acquisition and low pollution potential. i) Option I - upgrade existing open channel. Includes: (a) anti-corrosion lining for 11.06 km existing channel; (b) newly construct 120 m inverted siphon for crossing Liugou River; (c) build a 3,650 m long x 7.0 m wide channel; and (d) build and upgrade 13 bridges, 9 new and 3 upgraded sluice gates at the rivers of Guan, Wulong and Xiaoxin. Annual water diversion capacity is 33.44 million m3. ii) Option II – build a new pipeline. Includes: design diameter of steel pipe (with plastic coating) DN 1400 mm, with design velocity of 0.75 m/s (1.16 m3/s in flow). Total water head loss of pipeline is 9.95 m. Elevation difference between the start and end points of the pipeline is 21.98 m (29.5 m- 7.52 m), which is sufficient for gravity flow without pumping. Annual water diversion amount is 32.8 million m3.

Table VI-1: Comparison of Gaomi Water Diversion Option Advantage Disadvantage 1 Less temporary land acquisition (13.68 ha) More permanent land acquisition (8 ha); higher operation and maintenance cost; more water loss due to evaporation (8 million m3 annually); potential for water pollution; higher budget (CNY 128 million) 2 Less permanent land acquisition (0.035 ha); More temporary land acquisition (48 ha) domestic and industrial water supplies can be separated with irrigation water; easier tariff collection; less water loss due to evaporation; no pollution potential; lower budget (CNY121 million)

B. Alternatives for Nanzai Reservoir

181. Storage capacity at Nanzai Reservoir will be partly achieved by the construction of a small auxiliary dam wall near the main dam wall. Two options were compared (Table VI-2). Option I: the auxiliary dam axis is extended south to the 119 m contour line, requiring a 450 m long dam wall to be built. Option II: dam axis extended 300 m southwest from 0+400 m of the main dam to 119 m contour line, and will be the part of main dam. Option II was selected.

Table VI-2: Comparison of Auxiliary Dam of Nanzai Reservoir in Changle Option Advantage Disadvantage 1 Less permanent land acquisition Weak vertical stress condition between

the main dam and the auxiliary dam; higher project cost (CNY 62.4658 million) 2 Arc connection between the new dam axis and the 2.17 ha more permanent land acquisition main dam provides good stress conditions; than that of Option I connection with the No. 224 Provincial Expressway with small elevation difference, the layout is better; new dam axis will be part of the main dam with a total length of 1,254 m; lower budget (CNY 53.2061 million)

182. Spillway. Three options were compared (Table VI-3). All options include the existing spillway to be reconstructed, at same location, with bulkhead gate and hydraulic hoist. Option I: open-type spillway with 2 holes in 8 m net widths; Option II is open-type spillway with 3 holes in 5 m net widths; Option III is open-type spillway with 4 holes in 4 m net widths. After comparison and assessment of seismic safety, project layout, structure stress, estimated cost, Option II was selected.

Table VI-3: Comparison of Spillway Alternatives of Nanzai Reservoir in Changle Option Advantage Disadvantage Cost (CNY) 1 Less civil, mechanical and electrical works; H igh cost for hydraulic equipment; high 12.587 no bent frame, hoist platform, machine cost for maintenance; needs skilled million room; better seismic resistance; lower cost. personnel for operation and management. 2 Comply with the regulation that less gate High cost Hydraulic equipment; more 12.9396 holes should apply odd number of holes; concrete work million sluice chamber structure allows symmetric stress; comply with the proportional relation between aperture dimension and design head; 3 Low cost and easy to operate for winch More civil, mechanical and electrical 13.6517 hoist; lower cost and requirements for works; bent frame, hoist platform and million maintenance machine room are weak for seismic resistance; higher cost.

C. Alternatives for Sediment Dredging and Disposal

183. Two options were assessed for sediment dredging: conventional and environmental. Conventional dredging is faster and costs less. Environmental dredging more precisely removes sediment, with less physical disturbance, but is more expensive. Environmental dredging will be used at Judian wetland, Nanzai and Juchenghe Reservoirs, Mata drainage channels, and sections of river channels, to minimize impacts to water quality. For other waterbodies (mainly degraded channels), conventional dredging will be applied.

184. Two options for sediment disposal and reuse were assessed: use for farmland as fertilizer; and use on landscaping as fertilizer. Based on the project sediment sampling results (Section IV), option I will be applied at Nanzai Reservoir due to good water quality. At Judian wetland and Mata drainage channels, where the sediment is more polluted (with nitrogen and phosphorous), option II will be applied.

VII. PUBLIC CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE

185. Meaningful participation and consultation during project planning, feasibility study, design and implementation are important safeguard requirements. The PRC Environmental Protection Law and Regulations on the Administration of Construction Project Environmental Protection (Order No. 253 of the State Council) require that a DEIA solicits the opinions of organizations concerned and residents within and near the project sites. In August 2012, the PRC National Development and Reform Commission (NDRC) issued a requirement for “Social Risk Assessment of Large Investment Projects”, which emphasizes the importance of public consultation in an effective manner, and requires that the results of public consultation are clearly summarized in the DEIA report, including the dates of consultations, number of stakeholders, who the affected people are, and the comments received.

186. ADB’s SPS (2009) also requires meaningful public participation, consultation and information disclosure. The consultation process for this project followed PRC law and the SPS.

187. The sections below describe the public consultations for the environmental assessment, undertaken between March 2013 (Changle Reservoir) and December 2014. Consultation included: (i) information disclosure; (ii) questionnaire surveys; (iii) informal visits to villages and households in the project area; and (iv) a stakeholder meeting attended by representatives of the affected public and other concerned stakeholders, including a questionnaire survey after the meeting.

188. A social and poverty analysis was conducted by the PPTA team based on group discussions with key agencies, beneficiaries, and adversely affected communities, with emphasis on poverty villages and potential gender issues. For the preparation of resettlement plans, information disclosure and public consultations were conducted, by questionnaire surveys, community meetings, and focus group discussions.

A. Information Disclosure

189. Two rounds of information disclosure about the project were conducted by the EIA institute in each project county. Information was distributed through local government websites and Bulletin Boards of related villages and residential communities (Table VII-1, Figure VII-1).

190. The first round was carried out during early DEIA preparation, and comprised: (i) description of project components; (ii) site locations; (iii) proposed construction measures; (iv) environmental impact assessment procedures; (v) avenues for public feedback; (vi) contact details of the PMO, IAs, EIA Institute and local EPBs; and (vii) procedures and scope of the DEIAs. People from areas where potential impacts might occur were consulted, as well as the appropriate representatives of age, gender, poverty, and occupations. The second round was undertaken after preparation of the FSRs and DEIAs to seek public feedback on the findings, including potential impacts and mitigation measures, and included consultations with communities and businesses in and near project sites.

Table VII-1: Summary of Information disclosure. 1st Information Disclosure 2nd Information Disclosure Component Date Media Posted Date Media Posted Shouguang Government’s website of Shouguang Government’s website of 24 Sep.- 6 3-28 Dec. Shouguang http://www.sdsg.gov.cn:8088/zwgk/zwg http://www.sdsg.gov.cn:8088/zwgk/zwg Nov. 2014 2014 ksg/sg13_zwgknews.jsp ksg/sg13_zwgknews.jsp 12-22 Changle Government’s website of 10 Oct. Changle On the Bulletin Boards of 11 villages Feb. 2014 http://xxgk.changle.gov.cn:82/xxgk/jcm 2014

s_files/jcms1/web58/site/art/2014/3/14/ art_328_9001.html

18 Sep – Gaomi Government’s website of st Gaomi Government’s website of st 21 Oct.- 1 Gaomi 1 Oct. http://www.gaomi.gov.cn/News.asp?ID http://www.gaomi.gov.cn/News.asp?ID Nov. 2014 2014 =13457 =13457 Qingzhou Government’s website of Qingzhou Government’s website of 10 Sep – http://xxgk.qingzhou.gov.cn/xxgk/jcms_ 3 -28 Dec. http://xxgk.qingzhou.gov.cn/xxgk/jcms_f Qingzhou 6 Oct. files/jcms1/web42/site/art/2014/10/11/a 2014 iles/jcms1/web42/site/art/2014/12/3/art_ 2014 rt_1292_12484.html 1292_12484.html Huantai Government website of Huantai Government website of 5-16 Sep. 21-31 Oct. Huantai http://www.huantai.gov.cn/ht/news/201 http://www.huantai.gov.cn/ht/news/2014 2014 2014 4/201495170245405.html /201495170245405.html

Webpage of 1st Information Disclosure for Shouguang Webpage of 2nd Information Disclosure for Shouguang

Webpage of 1st Information Disclosure for Changle Webpage of 2nd Information Disclosure for Changle

Webpage of 1st Information Disclosure for Gaomi Webpage of 2nd Information Disclosure for Gaomi

Webpage of 1st Information Disclosure for Qingzhou Webpage of 2nd Information Disclosure for Qingzhou

Webpage of 1st Information Disclosure for Huantai Webpage of 2nd Information Disclosure for Huantai Figure VII-1: Project information disclosed on the websites

191. Future information disclosure. Further disclosure will be as follows:

i) The summaries of the five DEIAs in Chinese will be disclosed on Shandong Provincial EPD website for at least 15 before DEIA approval; ii) Copies of the DEIAs in Chinese are available on request in both the Provincial EPD and the EPBs of five project city/counties; iii) This draft project EIA was disclosed on the ADB public website (www.adb.org) on 10 March 2015, for 120 days before ADB Board consideration of the loan; and iv) Environment progress and monitoring reports will be prepared on a semi-annual basis and will be disclosed on the ADB public website.

B. First Round of Consultation

192. The first round of public consultation for the project was conducted in all five project counties, between March 2013 and December 2014. The consultation scope included the villages within 300 m from the construction sites, where people more likely to be impacted by noise, dust, and odor from dredged sediment during construction, for the components of channel dredging and embankment, villages within 500 m upstream and 1,000 m downstream of proposed river sections were included. The consultations consisted of villagers/residents from 57 villages and 22 units and a social organization. In total for the five project counties, 2,240 questionnaires were distributed by the EIA Institute and 2,099 (93.7%) were completed and returned. Respondents from different age groups, gender, educational backgrounds and occupations are summarized in Table VII-2, and the survey result is described in Table VII-3.

Table VII-2: Respondents of 1st Round of Questionnaire Survey Shouguang Changle Gaomi Qingzhou Huantai 22-29 Dec. 2014 1-2 Mar. 2013 17-26 Oct. 2014 1-5 Dec. 2014 5-11 Sep. 2014 Information of Consulted APs # Resp. # Resp. # Resp. # Resp. # Resp. % % (total (%) (%) (total (%) (total 193) (total 656) (total 102) 218) 930)

Male 171 88.60 407 62.04 175 80.28 83 81.37 685 73.66 Female 22 11.40 249 37.96 43 19.72 19 18.63 215 23.12

Gender Not filled 0 0.00 0 0.0 0 0.00 0 0.00 30 3.23

<30 (19-34 for Changle) 43 22.28 48 7.3 11 5.05 4 3.92 28 3.01 31-45 (35-55 for Changle) 56 29.02 478 72.9 59 27.06 33 32.35 201 21.61 46-60 (≥56 for Changle) 75 38.86 130 19.8 105 48.17 42 41.18 389 41.83 ≥60 19 9.84 - - 43 19.72 23 22.55 283 30.43 Age Group Not filled 0 0.00 0 0.0 0 0.00 0 0.00 29 3.12 Below junior high school 63 32.64 148 22.6 40 18.35 8 7.84 110 11.83 Junior high school 83 43.00 129 59.17 42 41.18 460 49.46 Senior high & vocational 496 75.6 38 19.69 44 20.18 18 17.65 285 30.65 school

Education College and above 9 4.66 10 1.5 2 0.92 1 0.98 42 4.52 Not filled 0 0.00 2 0.3 3 1.38 33 32.35 33 3.55 Worker 35 18.13 3 0.5 1 0.46 0 0 18 1.94 Peasant 91 47.15 646 98.5 206 94.50 101 99.02 773 83.12 Cadre 7 3.63 2 0.3 2 0.92 1 0.98 41 4.41 Self-employed businessmen 29 15.02 1 0.1 3 1.38 0 0.00 6 0.65 Teacher 5 2.59 2 0.3 0 0.00 0 0.00 3 0.32

Occupation Student 26 13.47 0 0.0 0 0.00 0 0.00 11 1.18 Others 0 0.00 0 0.0 2 0.92 0 0.00 15 1.61 Not filled 0 0.00 2 0.3 4 1.83 0 0.00 63 6.77 People from 11 18 villages, 4 units, 1 Number of consulted villages People from 8 villages People from 3 villages 17 villages, 28 units villages social organization

95 95

96 96

Table VII-3: Results of 1st Round of Questionnaire Survey Shouguang Changle Gaomi Qingzhou Huantai No. Question Option # Resp. #f Resp. # Resp. # Resp. # Resp. (%) (%) (%) (%) (%) (total 193) (total 656) (total 218) (total 102) (total 930) Yes 193 100.00 656 100.0 218 100.00 102 100.00 546 58.71 1 Do you know the project Don’t know 0 0.00 0 0.0 0 0.00 0 0.00 380 40.86 Not filled 0 0.00 0 0.0 0 0 4 0.43 Public media 159 82.38 2 0.3 26 11.93 102 100.00 178 19.14 Meeting 0 0.0 21 9.63 0 0.00 95 10.22 Public consultation 4 2.07 3 0.5 171 78.44 0 0.00 474 50.97 How (through which way) did 2 Government you know the project 0 0.00 0 0.0 0 0.00 0 0.00 158 16.99 planning Not filled 0 0.00 0 0.0 0 0.00 0 0.00 25 2.69 Village committee 30 15.55 651 99.2 0 0.00 0 0.00 Good 145 75.13 653 99.5 163 74.77 78 76.47 264 28.39 What do you think about the Fair 44 22.80 2 0.3 50 22.94 24 23.53 431 46.34 overall environmental 3 Slightly polluted 4 2.07 0 0.0 5 2.29 0 0.00 166 17.85 situation of project site in your county? Seriously polluted 0 0.00 1 0.2 0 0.00 0 0.00 67 7.20 Not filled 0 0.00 0 0.0 0 0.00 0 0.00 2 0.22 Good 106 54.92 653 99.5 136 62.39 77 75.49 190 20.43 What do you think about the Fair 79 40.93 3 0.5 70 32.11 25 24.51 414 44.52 4 current surface water quality Slightly polluted 8 4.15 0 0.0 7 3.21 0 0.00 177 19.03 in your county? Seriously polluted 0 0.00 0 0.0 5 2.29 0 0.00 148 15.91 Not filled 0 0.00 0 0.0 0 0 0 0.00 1 0.11 Good 137 70.98 654 99.7 146 66.97 86 84.31 181 19.46 What do you think about the Fair 52 26.94 2 0.3 62 28.44 12 11.77 418 44.95 5 current ambient air quality in Slightly polluted 4 2.07 0 0.0 10 4.59 4 3.92 204 21.94 your county? Seriously polluted 0 0.00 0 0.0 0 0.00 0 0.00 126 13.55 Not filled 0 0.00 0 0.0 0 0 0 0.00 1 0.11 Good 133 68.91 651 99.2 132 60.55 70 68.63 202 21.72 What do you think about the Fair 46 23.83 4 0.6 59 27.06 32 31.37 397 42.69 6 current groundwater quality Slightly polluted 14 7.25 0 0 24 11.01 0 0.00 201 21.61 in your county? Seriously polluted 0 0.00 1 0.2 3 1.38 0 0.00 129 13.87 Not filled 0 0.00 0 0.0 0 0.00 0 0.00 1 0.11 7 What negative impacts are Noise impact 52 26.94 8 1.2 41 18.81 52 50.98 252 22.18

Shouguang Changle Gaomi Qingzhou Huantai No. Question Option # Resp. #f Resp. # Resp. # Resp. # Resp. (%) (%) (%) (%) (%) (total 193) (total 656) (total 218) (total 102) (total 930) most likely during project Water pollution 44 22.80 2 0.3 44 20.18 50 49.02 429 37.76 implementation? Air pollution 83 43.01 20 3 22 10.09 0 0.00 306 26.94 Traffic congestion/ 0 0.00 625 95.3 9 4.13 0 0.00 77 6.78 accidents Others 14 7.25 2 0.3 102 46.79 0 0.00 66 5.81 Not filled 0 0.00 0 0 0 0 0 0.00 6 0.53 Do you think the project is Necessary 193 100.00 656 100 217 99.54 102 100.00 912 98.06 8 necessary for development? Unnecessary 0 0.00 0 0 1 0.46 0 0.00 18 1.94 Positive impact 116 60.19 656 100 127 58.26 85 83.33 552 59.35 What do you think impacts to Slight negative 0 0.00 0 0 6 2.75 0 0.00 155 16.67 9 your daily life and work causing by the project Serious negative 0 0.00 0 0 0 0 0 0.00 0 0 No impact 77 39.90 0 0 0 0 17 16.67 211 22.69 Do you think the mitigation Yes 193 100.00 656 100 217 99.54 102 100.00 917 98.60 10 measures in DEIA are enough? Not 0 0.00 0 0.0 1 0.46 0 0.00 13 1.40 What is your attitude towards Support 193 100.00 656 100.0 217 99.54 102 100.00 917 98.60 11 the project? Don’t support 0 0.00 0 0.0 1 0.46 0 0.00 13 1.40

97 97

193. Results of the first round of public consultation. Nearly all respondents (98.6 - 100%; N=2,099) in the five counties supported the project, believed it will strengthen water supply and security, reduce groundwater use, and that the mitigation measures in the DEIAs are adequate. 58.26% to 100% respondents expressed the project will bring positive impacts to their daily life and work, while 2.75–16.7% believed the project will bring slight negative impact. Most (98.06%–100%) respondents expressed the project is necessary for the local development. Feedback by respondents included: (i) increase the landscaping area as much as possible along the river channels; (ii) minimize odor and pollution from dredged sediment; (iii) conduct water spraying on construction sites to minimize dust generated by construction activities; (iv) guarantee resident safety from construction activity; and (v) for the Gaomi pipeline component, residents expressed that sound construction planning is needed to avoid repeated excavation of easements. These considerations have been included as mitigation and management measures in the updated FSRs and the DEIAs.

C. Second Round of Consultation

194. The second round of public consultations were undertaken in the five project counties in the form of consultation meeting and questionnaire surveys after the meetings, between October 2014 and January 2015, after the second round of information disclosure. The public meetings were used as an opportunity to: (i) present the main anticipated impacts and the final proposed mitigation measures as defined in the updated FSRs and the DEIAs; and (ii) introduce the project grievance redress mechanism (GRM). After the meetings, 250 follow-up questionnaires were distributed and 242 (96.8%) were returned. The questionnaires focused on public understanding of the project components, and local opinions on the potential environmental, social and economic impacts of the project. The breakdown of participants and the results of questionnaire survey are listed in Tables VII-4 and VII-5 respectively.

195. All (100%) of the consulted persons supported the project, and believed it will improve the local water resource environment and livelihoods. 96.3% to 100% respondents thought the identified construction spoil sites are reasonable; 73.69% to 100% persons believed that odor impact caused by dredged sediment are slight or moderate after the proposed mitigation measures in the DEIAs and EMP are properly taken. Most (85.19% to 100%) respondents thought the project will bring significant positive result for groundwater conservation and ground subsidence.

D. Future Consultation

196. Dialogue will be maintained with project communities throughout implementation. Future consultation will be undertaken by the PMO and PIO Environment and Social Officers, via questionnaire surveys, household visits, workshops, and public hearings.

Table VII-4: Respondents of 2nd Round of Questionnaire Survey Shouguang Changle Gaomi Qingzhou Huantai Information of Consulted Affected 22-29 Dec. 2014 10-22 Dec. 2014 17-26 Oct. 2014 9-13 Jan. 2015 5-11 Sep. 2014 Persons # (19 in # (82 in # (41 in # (45 in # (54 in % % % % % total) total) total) total) total)

Gender Male 16 84.21 77 93.90 37 90.24 39 86.67 41 75.93 Distribution Female 3 15.79 5 6.10 4 9.76 6 13.33 12 22.22 <30 (19-34 for Changle) 5 26.32 4 4.88 1 2.44 9 20.00 4 7.41 31-45 (35-55 for Changle) 8 42.10 27 32.93 12 29.27 11 24.44 12 22.22 Age Group 46-60 (≥56 for Changle) 5 26.32 45 54.88 21 51.22 19 42.22 25 46.30 ≥60 1 5.26 6 7.32 7 17.07 6 13.33 13 24.07 Below junior high school 3 15.79 4 4.88 1 2.44 7 15.56 5 9.26 Junior high school 12 63.16 47 57.32 28 68.29 31 68.89 18 33.33 Senior high school and Education 4 21.05 29 35.37 12 29.27 7 15.56 17 31.48 vocational school College and above 0 0.00 2 2.44 0 0 0 0.00 7 12.96 Not filled 0 0.00 0 0.00 0 0.00 0 0.00 7 12.96 Worker 1 5.26 0 0.00 0 0.00 6 13.33 2 3.70 Peasant 13 68.42 82 100.00 39 95.12 32 71.11 9 16.67 Cadre 2 10.53 0 0.00 0 0.00 3 6.67 11 20.37 Occupation Self-employed businessmen 3 15.79 0 0.00 1 2.44 4 8.89 3 5.56 Student 0 0.00 0 0.00 0 0.00 0 0.00 1 1.85 Doctor 0 0.00 0 0.00 1 2.44 0 0.00 0 0.00 Not filled 0 0.00 0 0.00 0 0.00 0 0.00 28 51.85 People from 3 People from 11 Number of consulted villages People from 7 villagers, People from 3 villagers, People from 5 villagers villagers villagers

100 100

Table VII-5: Results of 2 Round of Questionnaire Survey Shouguang Changle Gaomi Qingzhou Huantai No. Question Option # (19 in Total) % # (82 in Total) % # (41 in total) % # (45 in total) % # (54 in total) % Proper 19 100.00 82 100.00 40 97.56 45 100.00 52 96.30 Do you the proposed construction spoil 1 Improper site is reasonable? 0 0.00 0 0.00 0 0.00 0 0.00 2 3.70 Don’t know 0 0.00 0 0.00 1 2.44 0 0.00 0 0.00 What do you think the ambient air Serious 7 36.84 0 0.00 0 0.00 5 11.11 1 1.85 impact by dust caused by the Moderate 2 construction activities after the 11 57.90 0 0.00 15 36.59 26 57.78 12 22.22 proposed mitigation measures are Slight properly taken 1 5.26 82 100.00 26 63.41 14 31.11 41 75.93 What do you think the impact by odor Serious 5 26.32 0 0.00 0 0.00 2 4.44 0 0.00 caused by dredged sediment after the 3 Moderate proposed mitigation measures are 8 42.11 0 0.00 18 43.90 18 40.00 11 20.37 properly taken Slight 6 31.58 82 100.00 23 56.10 25 55.56 43 79.63 As fertilizer for 12 63.16 53 64.63 12 29.27 20 44.44 24 44.44 Which method do you think is agriculture Disposal with 4 appropriate for disposal of dredged 7 36.84 0 0.00 17 41.46 15 33.33 15 27.78 sediment construction spoil Others 0 0.00 29 35.37 12 29.27 10 22.22 15 27.78 What do you think the noise impact Serious 1 5.26 0 0.00 0 0.00 0 0.00 2 3.70 caused by the construction activities 5 Moderate after the proposed mitigation measures 15 78.95 0 0.00 7 17.07 21 46.67 14 25.93 are properly taken Slight 3 15.79 82 100.00 34 82.93 24 53.33 38 70.37 Good What’s result do you believe for the 16 84.21 82 100.00 23 56.10 41 91.11 38 70.37 6 farmland restoration after the project Fair 3 15.79 0 0.00 17 41.46 4 8.89 13 24.07 completion Inefficient 0 0.00 0 0.00 1 2.44 0 0.00 3 5.56 Do you think the project will bring Yes 19 100.00 82 100.00 41 100.00 45 100.00 46 85.19 significant positive result for 7 No over-exploitation of groundwater and 0 0.00 0 0.00 0 0.00 0 0.00 1 1.85 ground subsidence Don’t know 0 0.00 0 0.00 0 0.00 0 0.00 7 12.96 Yes 19 100.00 82 100.00 41 100.00 45 100.00 54 100.00 8 Do you support the project No 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

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VIII. GRIEVANCE REDRESS MECHANISM (GRM)

197. A grievance redress mechanism (GRM) has been developed in compliance with ADB’s SPS (2009) requirement to address environmental, health, safety, and social concerns associated with project construction, operation, land acquisition, and leasing arrangements. The GRM is designed to achieve the following objectives: (i) provide channels of communication for local communities to raise concerns about environment- and social-related grievances which might result from the project; (ii) prevent and mitigate adverse environmental and social impacts to communities caused by project construction and operation, including those associated with resettlement; (iii) improve mutual trust and respect and promote productive relationships between the project agencies and local communities; and (iv) build community acceptance of the project. The GRM is accessible to all members of the community, including women, youth, and poverty-stricken residents. Multiple points of entry are available, including face-to-face meetings, written complaints, telephone conversations, e-mail, and social media.

198. Public grievances to be addressed by the GRM will most likely include disturbance of agricultural activities, traffic, dust emissions, construction noise, odor caused by sediment dredging, soil erosion, inappropriate disposal of construction wastes, damage to private houses, safety measures for the protection of the general public and construction workers, and/or water quality deterioration. Grievances related to involuntary resettlement may relate to the lack, or un-timely payment of, compensation monies, other allowances, and/or lease monies as per entitlements described in the resettlement plan and associated documents.

199. Currently in Shandong Province (and generally in the PRC), when residents or organizations are negatively affected by a development, they may complain, by themselves or through their community committee, to the contractors, developers, the local EPB, provincial EPD, or by direct appeal to the local courts. The weaknesses of this system are: (i) the lack of dedicated personnel to address grievances; and (ii) the lack of a specific timeframe for the redress of grievances. The project GRM addresses these weaknesses.

200. The GRM meets the regulatory standards of the PRC that protect the rights of citizens from construction-related environmental and/or social impacts. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Based on the regulation, the former State Environmental Protection Administration (SEPA) published updated Measures on Environmental Letters and Visits (Decree No. 34) in 2006.

201. The GRM will be accessible to diverse members of the villages and community, including more vulnerable groups such as women, minority and poor. Multiple points of entry, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available.

202. The details of the GRM, including a time-bound flow chart of procedures, are included in the project EMP (Attachment 1 of this EIA).

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IX. ENVIRONMENTAL MANAGEMENT PLAN

203. A project environmental management plan (EMP) has been prepared (Attachment 1). Development of the EMP drew on the five DEIA reports, discussions with the PMO, PIOs and IAs, Shandong EPD, local EPBs, other government agencies, and local communities. The EMP defines mitigation measures for the anticipated environmental impacts, institutional responsibilities, and mechanisms to monitor and ensure compliance with PRC’s environmental laws, standards and regulations and ADB’s SPS. The EMP specifies major environmental impacts and mitigation measures, roles and responsibilities, inspection, monitoring, and reporting arrangements, training, and the grievance redress mechanism. The EMP will be updated after detailed design, as needed.

X. CONCLUSION

204. The project will improve the management and use of surface and groundwater resources in five counties within the Weifang-Zibo aquifer in Shandong Province, a region subject to water shortage, severe groundwater exploitation, and land subsidence (due to groundwater extraction). Through increased retention of storm water, improved allocation and transfer of water resources, and protection of groundwater, overall water security will be improved. The hydrological and ecological management of a large natural wetland, Judian, will also be improved. Cumulatively, the project benefits support a range of existing government initiatives to manage provincial water resources, including closure of over-exploited groundwater wells.

205. Key construction risks arise from the planned dredging and construction of embankments, which may cause pollutants and odor to be released from the dredged sediments, temporary elevated increases in sediment levels, and loss of breeding habitat for fish and aquatic invertebrates. Inappropriate transport and disposal may damage roads along transport routes and cause leakage at spoil sites. Other construction risks include noise, air pollution (mainly fugitive dust), soil erosion from uncontrolled earthworks, uncontrolled solid waste disposal, interference with traffic and municipal services during pipeline construction across roads and bridges, permanent and temporary acquisition of land, involuntary resettlement, and occupational and community health and safety. Key operational risks are altered hydrology and ecology within and downstream of the project construction areas, due to dredging, embankment, and the physical connection of channels.

206. Measures to avoid, minimize, and mitigate potential project impacts have been developed within an environmental management plan (EMP; Attachment 1). The EMP is the key document to manage, monitor and report on environmental impacts of the project. Meaningful public consultation was conducted in the five project counties in accordance with PRC and ADB requirements. Public concerns have been integrated into the domestic feasibility study reports and project EMP. Public consultation will continue throughout project implementation. A project-specific grievance redress mechanism (GRM) has been developed, and will be implemented at the provincial, county, and site levels.

207. A climate risk vulnerability assessment (CRVA) was conducted to identify the threat that climate change presents to the viability of the project, assuming a design life of 30-40 years. Modeling predicted that mean annual temperature will increase 0.5-1.3℃ from 2010-2020 and 1.5-2.7℃ by 2050, annual precipitation will decrease, variability in precipitation will increase, and storm severity will increase. Increasing flood volumes could exceed the flow capacity of embankments, channels, pipelines, and the three project pump stations. All structures will be constructed to a flood protection standard of one in 20-50 years, and embankments have been designed to be porous for improved infiltration. Overall the existing project design is strongly oriented to achieve resilience to climate impacts: increased storm water retention and improved water monitoring and allocation will strengthen water security; channel dredging and embankment

103 will improve water flows and reduce flood risk; increased water storage in Nanzai and Juchengu reservoirs will reduce the risks of drought due to reduced precipitation; the pilot on water-smart greenhouses will demonstrate how food security can be maintained with less water; and, training in wetland management will help secure freshwater resources at a large wetland, Judian.

208. Project assurances. Loan assurances for ADB-funded projects require that the project is implemented in accordance with national laws and the project EMP. In addition, the following project-specific assurances are included in the project agreement between ADB and the SPG.

(i) Environment-related impacts to livelihoods. SPG shall ensure that project construction and operation shall not result in any changes to the availability or allocation of freshwater to downstream communities, which might negatively impact their water security or livelihood.

(ii) Second round of sediment sampling. Before any project dredging, the SPG shall conduct a second round of sediment sampling, to confirm and expand the results of the first round of sampling. The Environment Protection Bureaus in each project county will supervise the sampling, which shall be conducted by a certified agency. In the event of any spoil exceeding the standards, the spoil would be categorized as a “hazardous waste” and require further assessment and specific disposal methods by a qualified center, the Shandong Provincial Hazardous Wastes Disposal Center (under the Shandong Environment Protection Department). Spoil would be disposed at specialized sites in accordance with PRC Pollution Control on the Security Landfill - Hazardous Wastes (GB 18598-2001).

(iii) Native vegetation. SPG shall ensure that all project activities requiring the use of plants, use only native species from Shandong Province, and which are sourced locally (i.e. in or near the project sites) to ensure local genetic provenance. This includes the project re-vegetation components, landscaping, and rehabilitation of construction sites. If the use of fast-growing non-native species (e.g. grasses) is required for stabilizing bare construction surfaces, only sterilized seedlings (i.e. which cannot propagate) shall be used.

(iv) Associated facilities. Associated facilities which contribute to the project viability include nine existing reservoirs (four in Gaomi and five in Qingzhou), 15 existing water supply plants (five in Gaomi, eight in Shouguang, two in Huantai), and 11 existing wastewater treatment plants (three in Gaomi, four in Shouguang, three in Qingzhou, one in Huantai). Should any changes be made to these facilities which might impact their capacity or functioning, and subsequently the project viability, SPG and ADB shall jointly review and identify follow-up actions.

(v) Judian wetland. SPG shall ensure no development shall occur in Judian wetland which would compromise the project objectives of seasonal water storage and water quality, as well as provincial and national regulations on wetland ecological protection. Notwithstanding the foregoing, in case that any development (especially large infrastructure) is planned, SPG shall consult with ADB on the potential impacts of such plans to the project.

(vi) Ecological flows. During project operation, official (existing) ecological flow requirements for Nanzai and Juchenghu Reservoirs will be complied with.

209. Conclusion. Based on the information presented in this EIA, and assuming full and effective implementation of the Project EMP (Attachment 1), loan assurances, and training, potential adverse environmental impacts are expected to be minimized and/or mitigated to acceptable levels and to within the standards applied in this EIA.

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ATTACHMENT 1 - ENVIRONMENTAL MANAGEMENT PLAN

TABLE OF CONTENTS

A. OBJECTIVES ...... 105 B. ORGANIZATIONS AND THEIR RESPONSIBILITIES FOR EMP IMPLEMENTATION ...... 105 C. POTENTIAL IMPACTS AND MITIGATION MEASURES ...... 107 D. ENVIRONMENTAL MONITORING, INSPECTION AND REPORTING ...... 113 E. TRAINING, CAPACITY BUILDING, AWARENESS RAISING ...... 115 F. GRIEVANCE REDRESS MECHANISM ...... 119 G. PUBLIC CONSULTATION ...... 119 H. COST ESTIMATES ...... 119 I. MECHANISMS FOR FEEDBACK AND ADJUSTMENT ...... 123

105

A. Objectives

1. This Environmental Management Plan (EMP) is for the Shandong Groundwater Protection Project. The EMP is to be implemented in all phases of the project – design, pre-construction, construction, and operation. The EMP is to ensure project compliance with PRC environmental laws and ADB’s Safeguard Policy Statement (SPS 2009). The EMP describes: roles and responsibilities of all project agencies to implement this EMP; mitigation measures; inspection, monitoring, and reporting arrangements; training and institutional strengthening; grievance redress mechanism (GRM); and future public consultation.

2. In the design stage the PMO will pass this EMP to the design institutes for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, as needed. To ensure that bidders will respond to the EMP’s provisions, the PMO and local project implementation units (PIOs) will prepare and provide the following specification clauses for incorporation into the bidding documents: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals, (ii) environmental clauses for contractual terms and conditions, and (iii) component DEIAs, and project EIA including updated EMP for compliance.

B. Organizations and Their Responsibilities for EMP Implementation

3. The Shandong Provincial Government (SPG), represented by Shandong Provincial Water Resources Department (SWRD), is the executing agency (EA) of the project. At the provincial level, the SPG has established the comprehensive project management office (PMO) to provide policy guidance and coordinate overall project implementation. The PMO comprises representatives from the Shandong Finance Department (SFD), Shandong Development and Reform Commission (SDRC), SWRD, and other relevant agencies. The five project counties governments will be the implementing agencies (IAs). Each city and county has established a city or county project implementing office (PIO) to implement their project components and subprojects. The EMP implementation arrangements and responsibilities of governmental organizations are summarized in Table EMP-1.

Table EMP-1: Institutional responsibilities for EMP implementation Agency Environmental Management Roles and Responsibilities Executing Agency:  Coordination with city and county governments SPG, represented by the SWRD  Coordinate project preparation and implementation and the comprehensive PMO  Facilitate inter-agency coordination  Liaison with ADB  Supervise and manage project implementation  Daily management work in project preparation and implementation  Assign PMO environment officer and PMO social officer  Coordinate with ADB on project progress and monitoring reports  Submit bidding documents, bid evaluation reports, and other necessary documentations to ADB for necessary approval  Procure project implementation consulting services, including a LIEC  Consolidate environmental monitoring reports prepared by county PMOs and EMS and submit them to ADB for disclosure  Engage a procurement agency which supports the implementation agencies and five PIOs

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Agency Environmental Management Roles and Responsibilities Implementing Agencies:  Implement project components in their jurisdiction, including finance Five project cities and counties and administration, technical and procurement matters, monitoring and (through the city and county PIOs) evaluation, and safeguard compliance  Coordinate with the PMO for project management and implementation  Establish environment management unit and appoint environment specialist as EMP coordinator  Incorporate EMP into bidding documents  Establish GRM  Supervise and monitor EMP implementation and annual reporting to the PMO (with support of LIEC)  Participate in capacity development and training programs  Construction supervision and quality control  Contract local EMS to conduct environmental monitoring  Commission the constructed facilities Project Facility Operators: The  With PIOs, commission the constructed facilities; local WRBs  Operate and maintain completed facilities, including environmental management, monitoring and reporting responsibilities. ADB = Asian Development Bank, EMP = environmental management plan, EMS = environmental monitoring stations, GRM = grievance redress mechanism, LIEC = loan implementation environment consultant, PIO = project implantation office, PMO = project management office, SFD = Shandong Finance Department, SPG = Shandong Provincial Government, SPPLG = Shandong Provincial Project Leading Group.

4. Environment staff within PMO and the implementing agencies. The PMO will have main EMP coordination responsibility. The PMO has designated two full time PMO environmental officers responsible for EMP implementation. The officers will: (i) coordinate the implementation of mitigation measures during project design, construction, and operation; (ii) ensure that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts, and operation management plans; (iii) submit semiannual EMP monitoring and progress reports to ADB; (iv) implement the GRM; and (v) respond to any unforeseen adverse impacts beyond those mentioned in the EMP. The officers will be technically supported by the national individual loan implementation environment consultant (LIEC). At the county level, the PIO of each implementing agency will include one environment officer. This officer will be responsible for daily implementation of the EMP, working closely with the PMO environment officer, and LIEC. TORs for PMO and PIO environment officers are in Appendix 1.

5. Loan implementation environment consultant. A LIEC will be hired as national individual consultant under the loan implementation consultant services. The LIEC will advise the PMO, PIOs, contractors, and construction supervision companies (CSC) on all aspects of environmental management and monitoring for the project. The LIEC will (i) assist in updating the EMP and environmental monitoring program, as needed; (ii) supervise the implementation of the mitigation measures specified in the EMP; (iii) on behalf of the PIOs and PMO, prepare the annual EMP monitoring and progress reports in English and Chinese and submit it to ADB; (iv) provide training to the PMO, local PIOs, and CSCs on the PRC’s environmental laws, regulations and policies, ADB’s SPS (2009), EMP implementation, and GRM in accordance with the training plan (Table EMP-9); (v) identify any environment-related implementation issues, and propose necessary corrective actions; and (vi) undertake site visits for EMP inspection as required. TOR for the LIEC is in Appendix 1.

6. Construction contractors and construction supervision companies (CSCs). Construction contractors will be responsible for implementing relevant EMP mitigation measures during construction, under the supervision of the CSCs and PIOs. Contractors will develop site-specific EMPs on the basis of this project EMP. The CSCs will be selected through the PRC

107 bidding procedure by the PIOs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance, and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports submitted to the PIOs and PMO.

7. Environmental Monitoring Station (EMS). The PIOs will appoint the EMS of each project county to conduct periodic environmental impact monitoring during construction and operation in accordance with the monitoring plan (Table EMP-7 and Table EMP-8).

C. Potential Impacts and Mitigation Measures

8. Tables EMP-2 to EMP-5 list the potential impacts of the project components in the five counties during project preparation, implementation and operation, and mitigation measures. The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, by the design institutes (during detailed design) and contractors (during construction), under the supervision of CSCs and PIOs, with technical support from the LIECs. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved or adjusted.

Table EMP-2: Potential Impacts and Mitigation Measures during Pre-construction and Construction Phases Item Potential impacts / Mitigation measures Who Who issues implements supervises A. DESIGN AND CONSTRUCTION PHASES

Detail design Institutional  At least 6 months before construction: (i) appoint PMO Environmental Officers to PMO, PIOs EA, ADB stage strengthening for EMP coordinate EMP implementation; (ii) appoint at least 1 Environment Officer in each of the Implementation and five PIOs; (iii) draft Terms of Reference for these positions are in Appendix 1; supervision  At least 6 months before any construction, PMO engages LIEC;  At least 6 months before any construction, train these staff for EMP implementation;  The 5 PIOs have contracts with local EMSs to conduct the EMP compliance monitoring;  All EMSs are qualified centers which are part of county-level or higher EPBs;  Train relevant staff of PMO, IAs, PIOs, contractors, and CSCs on the EMP. Updating EMP  Update mitigation measures defined in this EMP based on final detailed design; PMO, LIEC EPD,  Submit the updated EMP to ADB for review; LEPBs,  In case of major changes of project location and/or additional physical component, form an ADB EIA team to conduct additional EIA and public consultation. The revised EIA should be submitted to EPD and ADB for approval and disclosure. To determine whether the change is minor or major under assistance of LIEC, PMO and PIOs should consult with ADB Second round of  Conduct sediment sampling in all sites planned for dredging (previous + new sites); EMS PMO, EPD, sediment sampling  If any spoil exceeds the standards, it will be categorized as “hazardous waste” and require LEPBs assessment and disposal by Shandong Provincial Hazardous Wastes Disposal Center. Such spoil will be disposed at specialized sites in accordance with PRC Pollution Control on the Security Landfill - Hazardous Wastes (GB 18598-2001). Environmental  Prior to construction, each PIO hires local EMS to conduct environment monitoring in PIOs, PIOs, PMO, monitoring plan accordance with the monitoring plan defined in this EMP; LEMSs ADB  Prepare detailed monitoring plan in accordance with the monitoring plan in this EMP. Bidding and contract  Mitigation measures in the EMP are incorporated in all bidding documents; DIs, PMO, LIEC, EPD, documents  Bidding documents are sent to ADB for review; PIOs LEPBs,  Prepare environmental contract clauses for contractors. ADB Construction Specialized equipment  DIs, PMO, LIEC, EPD, Preparation Bid documents for dredging will specify the different dredge methods and specialist and dredge methods equipment required, especially the “ecological cutter head” and sufficient experience. PIOs LEPBs,  A qualified bidder may own the required equipment or rent it; if the latter, the lease contract ADB will be shown in the tender document. EMP training  LIEC, or invited environment specialists and/or officials from EPD and EPBs provide LIEC, PMO EPD, ADB training on construction environmental management, implementation, supervision, to contractors and CSCs, in accordance with the training plan in this EMP Establish GRM  Responsibility for GRM implementation is assigned to the PMO and PIO Environmental PIOs PMO, LIEC, Officers and PMO Social Officers and is included in their terms of reference (Appendix 1); ADB  All PMO and PIO personnel will be aware of, and trained in, the GRM, and will help support 108

Item Potential impacts / Mitigation measures Who Who issues implements supervises the environmental and social officers when necessary;  Key contact details for the GRM (phone number, fax, address, email) will be provided on the PMO, PIO and/or EPB public websites and information boards at construction sites. Land acquisition and  Update LARP after detail design PIOs, LARO Local resettlement  Establish resettlement office of government officials to manage LARP; Bureaus of  Conduct information dissemination and consultation programs in accordance with the PRC Civil Affairs, Land Administration Law (1999) and ADB SPS; Land Mgmt,  Ensure all resettlement is reasonably completed before construction starts at a site. Labor B. CONSTRUCTION PHASE Topography Earthwork, soil erosion,  Define spoil disposal sites and borrow pit locations, in the tender documents; Contractor PIOs, and Soils soil contamination.  Construct intercepting channels to prevent construction runoff entering waterways; CSCs EPBs,  Divert runoff from sites to sedimentation ponds or existing drainage; WRBs,  Limit construction and material handling during periods of rains and high winds; LIEC  Stabilize cut slopes, embankments, and other erosion-prone areas during works;  Minimize open excavation areas and use compaction techniques for pipe trenches;  Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas;  Rehabilitate all spoil disposal sites and construction sites;  All landscaping will only use native plant species;  Situate construction camps and storage areas to minimize land area required;  Remove construction wastes from the site to the approved disposal sites;  Establish emergency preparedness and response plan for spills including cleanup equipment at each construction site and training in emergency spill response procedures;  Stabilize earthwork areas within 30 days after earthworks have ceased at the sites. Ambient Air Dust generated by  Equip material stockpiles and concrete mixing equipment with dust shrouds; Contractor PIOs, LIEC construction activities,  Spray water on construction sites and earth/material handling routes; CSCs gaseous air pollution  For odor during dredging, transport spoil to disposal site after de-watering, in sealed (SO2, CO, NOx) from containers. No storage at construction sites; construction machinery  Cover materials during truck transport; and asphalt pavement  Purchase pre-mixed asphalt for road surface paving; if asphalt is heated and mixed onsite, after pipeline laying asphalt mixers must be located >200 m from villages and other sensitive receptors;  Store petroleum or other harmful materials in appropriate places;  Ensure emissions from vehicle and machinery comply with PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005;  Provide high-horsepower equipment with tail gas purifiers; and  Conduct ambient air monitoring including H2S caused by sediment dredging. 109

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Item Potential impacts / Mitigation measures Who Who issues implements supervises Noise Noise generated from  Ensure construction machinery conform to PRC standard of GB12523-90; Contractor PIOs, LIEC construction activities  Properly maintain vehicles and machineries to minimize noise; CSCs  Apply noise reduction devices or methods where piling equipment is operating, such as construction of bridges and other hydraulic structures, within 300 m of sensitive sites;  Locate sites for rock crushing and concrete-mixing >500 m from sensitive areas;  Prohibit operation of machinery generating high levels of noise, such as piling, and movement of heavy vehicles along urban and village roads between 20:00 and 06:00;  Place temporary hoardings or noise barriers around noise sources during construction;  Monitor noise at sensitive areas and consult residents at regular intervals (see monitoring plan in this EMP). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation;  Conduct interviews with residents adjacent to construction sites to identify and resolve issues, including adjustment of work hours of noise-generating machinery. Surface Impact of embankment  A dredging plan will be prepared, to be approved by local EPBs and reservoir authorities. Contractor PIOs, LIEC, water and dredging  Technical requirements and mitigation measures for dredging will be included in the CSCs, EMS EPBs, pollution and construction on river bidding documents and construction contracts. WRB, dredging hydrology  The contractor site EMP will included dredge machinery maintenance, de-watering, reservoir emergency preparedness and response mechanism. authorities  Dredging will only be conducted in the dry season (late September to late March).  Dredging sections will be <300 m to minimize extent of the disturbance at any one time.  At Judian wetland, Nanzai and Juchenghe Reservoirs, and sections of river channels, “environmental dredging method” will be applied (see EIA Section V.B.3).  For artificial channels, conventional dredging or dry excavation methods will be used.  Earth berms or drainage channels will be constructed around the perimeter of the dredge sediment storage and disposal sites to prevent washing away from rainfall.  On-site storage will be limited to de-watering.  All sediment will then be transported to the spoil disposal sites.  Supernatant water from the spoil will be treated to meet PRC Integrated Wastewater Discharge Standard (GB 8978-1996).  Odor impacts will be minimized by: (i) timely public consultations for awareness prior to dredging; (ii) rapid on-site treatment of dredge spoil to minimize time near communities; (iii) transport in sealed containers; (iv) dredging in short sections (<300 m) at any one time.  Once de-watered, sediment will be transported in sealed containers to disposal sites to minimize odor and leakage onto roads.  Spoil will be used in farmland, landscaping, and soil reclamation.

Item Potential impacts / Mitigation measures Who Who issues implements supervises Impact of wastewater  For embankment and dredging, pump slurry to shore and dispose spoil; pollution  Construction wastewater collected in retention ponds and filter tanks to remove silts, oil;  Machine wash-down sites are equipped with water collection basins and sediment traps;  Locate storage / cleaning areas for fuel, machinery and vehicles >500 m from waterways;  Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces, and provided with bunds and cleanup installations;  Contractors’ fuel suppliers must be licensed and follow protocol for fuel transfer and PRC JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods);  All earthworks along waterways will be accompanied by measures to minimize sediment runoff, including sediment traps.  Labor camps will be located >500 m from waterways;  Portable toilets and on-site wastewater pre-treatment systems will be installed at construction camps along with proper maintenance protocols; and  Water quality (for pollutants such as SS, CODcr, NH3-N and petroleum) in the project waterways will be monitored by local EMS during construction (Table EMP-8). Solid Waste Solid waste generated  Provide waste collection and storage containers at locations away from surface water or Contractor PIOs, LIEC by construction sensitive receivers; CSCs activities and from  Arrange with municipal waste collection services for regular collection of waste; workers’ camps  Properly remove and dispose residual materials, wastes and contaminated soils. Paving or vegetating shall be done as soon as the materials are removed to stabilize the soil;  Burning of waste is strictly prohibited;  Provide sufficient garbage bins at strategic locations and ensure that they are protected from birds and vermin, and emptied regularly by the municipal waste collection systems. Biological Protection of flora and  Prior to construction, demarcate existing vegetation and fauna habitats e.g. vegetated Contractor, PIOs, LIEC resources fauna around roadsides, trees, riverbanks; CSCs construction sites  At Judian wetland, prior to construction, clearly demarcate the natural area in the north of the lake to avoid damage to the reed beds;  As far as possible avoid clearance of any vegetation;  After construction, immediately replant vegetation in any sites subject to clearance;  Comply with PRC Forestry Law i.e. the planting must be same or larger than area cleared;  Use only native plant species of local provenance for all re-vegetation. Socio- Impact on physical  Establish chance-find procedures for physical cultural resources; Contractor, PIOs LIEC, economic cultural resources  If a new site is unearthed, work shall be stopped immediately and local BCR and the PIO CSCs cultural relic resources promptly notified. bureaus 111

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Item Potential impacts / Mitigation measures Who Who issues implements supervises Temporary interruption  Use coffer dams and temporary diversion channels to maintain continued water flow while Contractor, PIO, county to water supply from works are conducted; CSCs, EPB pipeline or  Prior to works, re-confirm the planned construction schedule and site EMP actions; embankment  Inform residents at least two days before any planned water interruptions; construction  Assist residents if requested with community water storage during the interruption period;  Interruptions to water supply should not be longer than one (1) day;  In case of accidental interruption (e.g. damage of a pipeline), immediately inform affected communities and assist with water supply until the issue is resolved. Community health and  Prepare and implement a traffic control plan, for approval by the county traffic management Contractor, PIOs LIEC, safety administration before construction. To include scheduling or diverting construction traffic to CSCs labor avoid peak hours, regulating traffic at road crossings, selecting routes to reduce bureaus disturbance, reinstating roads, and opening them to traffic when construction is completed;  Plan pipeline construction to minimize disturbances to utility services. Three-dimensional detection of underground facilities will be conducted before construction where appropriate.  Residents and businesses will be informed in advance through media and information boards of the construction activities, dates and duration of expected disruption; and  Signs will be placed at construction sites informing people of the project GRM, potential dangers (e.g. moving vehicles, hazardous materials, excavations) and safety issues.  Heavy machinery will not be used at night.  All sites will be secured from unauthorized public access. Occupational health  Prepare environmental, health and safety plan, which will include: Contractors CSCs, and safety  Clean and sufficient supply of fresh water for construction sites, camps, offices; PIOs, LBs,  Sufficient latrines and garage receptacles at construction sites and work camps; EPBs, LIEC  Provide safety clothing to workers as necessary (e.g. boots, helmets, gloves, goggles, ear protection) in accordance with health and safety regulations for workers;  Emergency response plan for accidents. Establish emergency phone links with township hospitals and maintain a first-aid base in each construction camp;  Establish a records management system for occupational accidents, diseases, incidents. The records will be reviewed during compliance monitoring and audits;  Safety communication. Ensure that occupational health and safety matters are given a high degree of publicity to all persons on-site. Display posters prominently; and  Train workers in basic sanitation, health, safety, and work hazards. Implement awareness and prevention program for HIV/AIDS and other diseases – target community and workers. CSC = construction supervision company, EA = executing agency, EPB = environment protection bureau, EMS = Environmental Monitoring Station (of the five project counties), EPD = Shandong provincial environment protection department, IA = implementing agency, LARP = Land acquisition and resettlement plan, LARO = Land Acquisition and Resettlement Office (in each of the five project counties), LIEC = loan implementation environment consultant, PIO = project implementation unit, PMO = project management unit, WRB = water resource bureau.

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Table EMP-3: Potential Impacts and Mitigation Measures during Operation. Potential Issues Mitigation Measures and/or Safeguards Implement Supervise Embankments –  Implement annual (as a minimum) inspections of all project WRBs IAs, PMO Stability embankments for physical integrity. If signs of failure are discovered, implement a repair program immediately. Embankments –  Integrate routine maintenance activities into existing work WRBs IAs, PMO Routine program of the county WRB teams; maintenance of  Monthly maintenance (at least in summer) of re-vegetated embankment and embankments – pruning, weeding and replacement of dead landscaping or dying plants;  Inspect for signs of plant disease and/or pests and implement control measures as necessary;  At least once a year in May-June (i.e. before the rainy season) remove solid waste and debris – dispose in municipal landfill;  Prohibit or remove any illegal structures which are found, to maintain free water flow. Reservoirs –  Comply with existing ecological flow requirements for Nanzai Reservoir IAs, PMO water allocations (0.98 m/minute) and Juchenghe (0.29 m/minute) reservoirs;18 authority and ecological  Control flush spills; flows  Maintain safe and sustainable reservoir levels during dry and wet seasons Noise – from  Maintain acoustic barriers and sound absorbing materials; EMS EPB operation of  Consult nearby residents in first 3 months of operation and pumping stations assess any noise impacts Management – PMO, LIEC, PMO insufficient  Conduct comprehensive training for EMP implementation EMS, EPD, capacity for EMP EPB EPB = environment protection bureau, EMS = Environmental Monitoring Station (of the five project counties), EPD = Shandong provincial environment protection department, IA = implementing agency, LIEC = loan implementation environment consultant, PMO = project management unit, WRB = water resource bureau.

D. Environmental Monitoring, Inspection and Reporting

9. Three types of project monitoring will be conducted under the EMP: (i) internal monitoring and supervision and reporting by CSCs; (ii) EMP implementation monitoring and progress reporting; and (iii) environmental compliance monitoring by local EMS.

10. The project monitoring program focuses on the environment in the project areas of influence in the five project cities and/or counties (Table EMP-8). The program covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards to be followed are the national environmental quality standards of air, surface water, groundwater and noise, and the pollutant discharge standards.

11. Internal monitoring and supervision and reporting by CSCs. During construction, the CSCs will be responsible for conducting internal environmental monitoring in accordance with the monitoring plan (Tables EMP-7 and Table EMP-8). Supervision results will be reported through the CSC reports to the PIOs.

18The minimum ecological flow for Nanzai Reservoir is based on the DEIA for the Nanzai Reservoir Expansion Project (2014). For Juchenghe Reservoir, it is based on the Shandong Province Regulation for Reservoirs (which specifies ecological flow allocation of about 5% of the water source).

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12. EMP implementation monitoring and progress reporting. The LIEC will review project progress and compliance with the EMP based on field visits, and the review of the environmental monitoring conducted by the EMS. The findings of the LIECs will be reported to ADB through the semiannual EMP monitoring and progress reports. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The LIEC will help PMO prepare the reports and submit the English report to ADB for appraisal and disclosure.

13. Environmental compliance monitoring by local EMS. The PIOs in each city or county will contract the city or county EMS to conduct environmental monitoring in accordance with the monitoring program (Tables EMP-7 and EMP-8).. A detailed cost breakdown will be provided by the county EMS when the environmental monitoring program is updated at the start of each component implementation. Monitoring will be conducted during construction and operation period, until a PCR is issued. Semiannual monitoring reports will be prepared by the EMSs and submitted to PMO and the PIOs.

14. Project completion environmental audits. Upon completion of each subproject, environmental acceptance monitoring and audit reports shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC’s Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the semiannual EMP monitoring and progress reporting process. These subproject completion reports shall be finalized within 3 months after each subproject completion, or no later than 1 year with permission of the local environment protection bureaus.

15. Quality assurance (QA) /quality control (QC) for compliance monitoring. To ensure accuracy of the monitoring, QA/QC procedures will be conducted in accordance with the following regulations: i) Regulations of QA/AC Management for Environmental Monitoring issued by the State Environmental Protection Administration in July 2006; ii) QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre in 2001; and iii) QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre in 2001.

Table EMP-7: Environmental Reporting Plan Report From To Frequency of Reporting A. Construction Phase Internal progress reports CSCs PIOs Monthly External reports Local EMSs PMO, PIOs Semi-annually Environmental acceptance Licensed EPBs, Within three months after component monitoring and audit reports institute PMO, PIOs completion Compliance monitoring with EMP – Semi-annually (through semi-annual PMO / LIEC ADB progress reports project progress reports) B. Operation Phase EMP progress reports PMO ADB Annually

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Table EMP-8: Environmental Monitoring Program. Subject Parameter Location Frequency Implement Supervise 1. Construction Internal monitoring (contractors, CSCs, PMO and PIO Environment Officers) Ambient air Dust mitigation Visual inspection at all 1 time / week Contractor, PIO, LIEC quality measures in EMP; construction sites CSC equipment maintenance Solid waste Garbage and Visual inspection at all Daily PIO, EPB, Contractor, construction waste construction sites and sanitation CSC work-camps bureau Soil erosion and Soil erosion Visual inspection at spoil sites 1 time / week; and Contractor, PIO, LIEC re-vegetation intensity and all construction sites, immediately after heavy CSC especially roadsides, water rainfall pipelines, banks of rivers, channels, reservoirs, wetland Re-vegetation of Visual inspection at all sites At least 4 times / year Contractor, embankments, spoil CSC PIO disposal sites, construction sites Occupational Camp hygiene, Inspection at all construction 1 time / month Contractor, health and safety, availability of sites and work-camps CSC safety clean water, PIO emergency response plans External monitoring (county environment monitoring station) Quality of pH, SS, NH3-N, Domestic wastewater 4 times/year during EMS EPB, PIO sewage and CODCr, oil discharge at work-camps construction discharge channels at work camps Construction SS, oil, pH (i) 100 m upstream and 500 m 4 times/year during EMS EPB, PIO wastewater downstream of construction construction sites; (ii) at wastewater discharge points of all construction sites Water quality pH, SS, NH3-N, 500 m downstream of the river, 2 times / year during EMS EPB, PIO downstream of BOD5, CODCr, Total channels, reservoirs and construction reservoir coliform, oil wetland

Ambient air TSP, PM10, NOx All construction sites (at least 1 4 times / year during EMS EPB, PIO, point upwind, 1 point construction quality LIEC downwind) and nearby sensitive receivers (Section IV of EIA) Noise LAeq Boundaries of all construction 2 times / year (twice a EMS EPB, PIO, sites and sensitive receivers day: once in day time LIEC (Chapter IV-sensitive receivers and once at night time, within project area of influence) for 2 consecutive days) Solid Waste Work camps and Visual inspection at all Once a year (garbage, construction waste construction sites and LIEC PMO, ADB construction at construction sites work-camps waste) Soil erosion and Soil erosion Visual inspection at spoil sites At least 1 / year, and 1 re-vegetation intensity and construction sites, after completion of especially water pipeline route construction LEPB, LIEC and embankments of rivers, PMO, ADB channels, reservoirs and wetland Re-vegetation of Visual inspection at sites, and Compliance Monitoring: LIEC PMO, ADB

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Subject Parameter Location Frequency Implement Supervise embankments, spoil temporary occupied lands At least 1 time / year, and disposal sites and 1 after completion of construction sites construction Occupational Work camp Inspection at all construction At least once a year, and health and hygiene, safety, sites and work-camps once after completion of Sanitation, safety availability of clean construction LIEC labor water, emergency bureaus response plans 2. Operation phase Water quality of pH, SS, DO, NH3-N, (i) Nanzai and Juchenghe 2 times / year LEMS and PIO, LEPB, rivers, oil, CODcr, Cr6+, reservoirs – at the discharge facility PMO channels, BOD5, TN, TP, tunnels; (ii) Judian wetland – at operator reservoirs, chloride, NO3-N, the intake points of the rivers (LWRB) wetlands total coliforms and drainage channel from Chengbei WWTP; (iii) at least one monitoring point per 2 km of the 18 rivers and channels; (iv) intake point of water transmission pipeline Groundwater Groundwater level, (i) Judian wetland: at 4 2 times / year quality and level pH, NO3-N, CODMn, groundwater wells, 2 upstream As, Hg, Pb, Cr6+ and 2 downstream, of the wetland; (ii) 18 river sections LEPB, EMS and channels – at 1 PMO, ADB groundwater well along each section, downstream of project facilities Surface water COD, dissolved (i) inflow to constructed 6 times / year EMS LEPB, quality–Judian oxygen, TN, TP wetland; (ii) outflow from PMO, ADB wetland constructed wetland; (iii) outflow from lake Noise LAeq At:(i) boundary of pump 2 times / year (twice a EMS and LEPB, IA stations; (ii) nearby sensitive day: once in day time facility and PMO receivers and once at night time for operator 2 consecutive days) (WRB) Soil and Plant survival and All re-vegetated sites Spot check, twice a year PIO EPB, FB Vegetation coverage BOD5 = 5-day biochemical oxygen demand; CODcr = chemical oxygen demand; CSC = construction supervision company; EMS = environmental monitoring station; EPB = environmental protection bureau; FB = county forestry bureau, IA = implementation agency; LAeq = equivalent continuous A-weighted sound pressure level; LSMI = licensed soil erosion institute; NH3-N = ammonia nitrogen; NOx = nitrogen oxides; OPF = operators of project facilities; PM10 = particles measuring <10μm; PMO = Project Management Office; SO2 = sulfur dioxide; SS = suspended solids; TSP = total suspended particle.

E. Training and Capacity Building

16. The five project counties have no previous experience with ADB-funded projects or safeguard requirements. To ensure effective implementation of the EMP, a capacity building program will be implemented on: (i) the EMP, including the mitigation measures, monitoring, and reporting; (ii) ecological management of Judian wetland; (iii) groundwater quality protection and recharging; and (iv) sustainable integrated watershed management. Training will be by the Shandong EPD, five county EPBs, and LIEC. Trainees will include the PMO, IAs, PIOs, contractors, CSCs, and county water resource bureaus. The PMO will arrange and support the training programs, supported by the loan implementation consultants.

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Table EMP-9: Project Environment Training Program. Training program Scope of Training Trainer Trainee Time Days Persons Procurement and  ADB procurement guidelines LIC PMO, 2 2 50 contract  Bidding document and contract preparation, PIOs, FB management including EMP clauses (emphasize EMP  Risk of improper procurement and mitigation implementation) measures, and handling variation orders and contract management Implementation of  Roles, responsibilities, monitoring, inspection, LIC PMO, PIO, 2 2 50 EMP reporting EPB, CAB,  Environment monitoring program other local  Public consultation and participation; Units  GRM – implementation, coordination, reporting, working with the general public;  Environment, health and safety during project construction and operation for workers and the community;  Prevention and control of transmissible diseases and HIV/AIDS Integrated water  Principles of IWRM LIC As above 2 2 50 resources  Surface and groundwater management and management water conservation practices Ecological  Management of Judian wetland Experts PIO, OPF 2 2 50 management  Maintenance of planted vegetation and habitats from WRB of the project embankments EPD,  Point and non-point pollution control ADB Climate change  Energy saving and GHG emission reduction in LIC PIO, OPF 1 1 50 resilience water sector WRB Emergency  Response mechanism e.g. for spills; PIC PIO, OPF, 1 1 50 preparedness and  Mitigation measures for hydraulic sectors; other response planning  Emergency response team, procedure and bureaus actions Total 7 7 200 ADB = Asian Development Bank, CAB = civil affairs bureau, EMP = environment management plan, EPB = environment protection bureau, FB = finance bureau, GHG = greenhouse gas, GRM = grievance redress mechanism, LIC = loan implementation consultant, OPF = operator of project facilities, PIO = project implementing unit, PMO = project management office, WRB = water resource bureau.

F. Grievance Redress Mechanism

17. The Environmental and Social Officers of the PMO and five PIOs will be the lead coordinators for GRM implementation. However, all project agencies and staff will be trained in the GRM and will take an active role in supporting these staff as and when necessary.

18. At the PMO level, the PMO Environmental and Social Officers will establish a GRM tracking and documentation system, conduct daily coordination with the PIO officers, arrange meetings and conduct site visits as necessary, maintain the overall project GRM database, and prepare the reporting inputs for progress reports to ADB. At the PIO level, the environment and social officers will instruct contractors and construction supervision companies (CSCs) on the GRM procedures, and coordinate with the county EPBs and other government divisions as necessary. PMO and PIO staff will be trained and supported by the LIEC and Loan Implementation Social Consultant (LISC).

19. The contact persons for different GRM entry points, such as the PMO and PIO Environmental and Social Officers, contractors, operators of project facilities (OPFs), and county EPBs, will be identified prior to construction. The contact details for the entry points (phone numbers, addresses, e-mail addresses) will be publicly disclosed on information boards at construction sites and on the websites of the PMO and county EPBs.

20. Once a complaint is received and filed, the PMO and PIO officers will identify if

118 complaints are eligible. Eligible complaints include those where (i) the complaint pertains to the project; and (ii) the issues arising in the complaint fall within the scope of environmental issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is clearly not project-related; (ii) the nature of the issue is outside the mandate of the environmental GRM (such as issues related to resettlement, allegations of fraud or corruption); and (iii) other procedures are more appropriate to address the issue. Ineligible complaints will be recorded and passed to the relevant authorities, and the complainant will be informed of the decision and reasons for rejection. The procedure and timeframe for the GRM is as follows, and also summarized in Figure EMP-1.

 Stage 1: If a concern arises during construction, the affected person may submit a written or oral complaint to the contractor. Whenever possible, the contractor will resolve the issue directly with the affected person. The contractor shall give a clear reply within five (5) working days. The contractor will keep the PIO fully informed at all stages.

 Stage 2: If the issue cannot be resolved in Stage 1, after five days, the PIO and/or PMO will take over responsibility. Eligibility of the complaint will be assessed and a recommended solution given to the complainant and contractors within five (5) working days. If the solution is agreed by the complainant, the contractors and/or facility operators will implement the solution within seven days. Written records will be made of all stages and outcomes.

 Stage 3: If no solution can be identified by the PMO and/or PIO, and/or the complainant is not satisfied with the proposed solution, the PMO and/or PIO will organize, within ten (10) days, a stakeholder meeting (including the complainant, contractor and/or operator of the facility, county EPB, PIO, PMO). A solution acceptable to all shall be identified including clear steps. The contractors (during construction) and facility operators (during operation) will immediately implement the agreed solution. Written records will be made of all stages and outcomes.

21. The GRM does not affect the right of an affected person to submit their complaints to any agency they wish to, for example the local village committee, community leaders, courts, PMO, PIO, and/or Asian Development Bank.

22. The PMO and PIOs shall bear any and all costs of implementing the GRM, including meeting, travel, and/or accommodation costs of the project staff or affected person. The GRM will be implemented throughout project construction and at least the first year of operation for each project facility.

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Grievance/Complaints by APsADB

Oral or written Oral or written complaint complaint Solution found (5 working days) Local EPBs, IAs, Contractors, CSCs, village Committees LIEC

Forward Inform if solved, forward if not solved

The Provincial PMO’s and PIOs’ Environment and/or Social Officers

Record complaint, assess eligibility of complaint, inform relevant stakeholders including ADB, Shandong Provincial EPD and local EPBs

Solution not found Consult LIEC, IAs, Contractors, and CSCs to identify solution

Conduct stakeholders meeting

Solution (contractor, IA, APs, EPBs and LIEC) found to identify solution and action plan (10 working days)

Solution found

Implement Solution

During During Operation construction

Contractors and CSCs IAs and local EPBs

Figure EMP-1: Operation Chart of the GRM

G. Public Consultation and Awareness Raising

23. Two rounds of public consultation were conducted during project preparation (Section VII of the EIA). During construction, the project will continue to seek public consultation and raise awareness of project activities, especially those which may impact the public such as

120 noise or dust. A public consultation plan is in Table EMP-10, and includes public participation in evaluating environmental benefits and impacts. The PIOs are responsible for public participation during project implementation. They will be supported by the PMO Environment and Social Officers and the LIEC.

Table EMP-10: Public Consultation and Participation Plan Organizer Approach Times/Frequency Subjects Participants Construction PMO, PIOs, Questionnaire Once a year during Construction impacts; Workers, residents LIEC survey, site visits, peak construction adjusting mitigation in construction informal interviews measures if necessary; areas feedback Public workshops At least once during EMP implementation Residents, affected peak construction progress; construction persons, social impacts; adjusting sectors mitigation measures if necessary; feedback Operation PMO, PIO, Public consultation At least once in first Effects of mitigation Residents, affected operators of and site visits year of operation measures, impacts of persons adjacent to project operation, feedback project facilities facilities Public workshop As needed based on Effects of mitigation Residents, affected public consultation measures, impacts of persons, social operation, feedback sectors Public satisfaction At least once after Comments and Project survey one year of operation suggestions beneficiaries EIA = environmental impact assessment, OPF = operator of project facilities, PIO = project implementing unit, LIEC = loan implementation environmental consultant,.

H. Cost Estimates

24. This section provides an estimate of the cost of EMP implementation. The cost comprises three categories: mitigation measures (Tables EMP-2; EMP-3); monitoring (Table EMP-4); and training (Table EMP-6). Costs are presented for the construction phase of five years and the first year of operation i.e. a total of six years. The costs do not include: (i) detailed design revisions and adjustments; (ii) internal monitoring/inspection of solid wastes disposal, soil erosion and re-vegetation, occupational health and safety during construction, as this will be included in the construction supervision contracts; and (iii) salaries of PMO and PIO staff. Costs for mitigation measures and training are based on estimates in the five DEIAs and/or the experience of the PPTA team from other projects. All costs were discussed with the EIA Institute, PMO and IAs.

25. The total estimated cost is CNY23.97 million (USD 3.93 million) for five years construction and the first year operation (Table EMP-10). The estimated cost for the PMO is CNY197,000 (0.8%) and for each project county is: Changle (CNY6.2385 million; 26.0%); Gaomi (CNY2.4432 million; 10.2%); Huantai (CNY4.967 million; 20.7%); Qingzhou (CNY5.1541; 21.5%); and Shouguang (CNY4.63; 19.4%). About CNY0.374 million (1.5%) will be paid from the ADB loan consulting services. Other remaining costs will be paid by the IAs. Total costs are small given the large scale of the project and when spread over six years.

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Table EMP-10. Estimated Cost for EMP Implementation for Five Years Construction and First Year Operation (xCNY10,000). Construction-phase costs will be paid by the contractors (as part of their contracts). Operational-phase costs will be paid by each project implementing agency (IA). No. Cost ADB Unit Total PM Item Unit unit per Shouguang Changle Gaomi Qingzhou Huantai loan cost cost O s year MITIGATION MEASURES (Tables EMP-2 & EMP-3) Design and Pre-construction phase IA IA IA IA IA 1.1 Public consultation Meeting, survey 2.0 3 6.0 2.0 1.2 1.2 1.2 1.2 1.2 1.2 LIEC Consultant PM 1.8 10 18.0 3.6 18.0 1.3 Wetland specialist Consultant PM 1.8 8 14.4 2.88 14.4 1.4 GRM Lump sum 10.0 1 10.0 2.0 4.0 1.0 1.0 1.0 1.0 1.0 1.5 Second round sediment Lumpsum 1.0 5 5.0 n/a 1.0 1.0 1.0 1.0 1.0 sampling Subtotal 53.4 4.0 3.2 3.2 3.2 3.2 3.2 37.4 Construction phase (Table EMP-2) Contractor Contractor Contractor Contractor Contractor 2.1 Soil erosion and contamination 1,251.8 1 1251.85 250.37 138.87 462.59 80.0 370.39 200.0 Lump sum 5 2.2 Dust control Lump sum 65.19 1 65.19 13.038 25.06 8.48 13.38 9.92 8.35 2.3 Noise and vibration Lump sum 66.1 1 66.1 13.22 24.0 6.0 6.0 12.6 17.50 2.4 Surface water pollution Lump sum 96.17 1 96.17 19.234 31.5 3.88 16.65 10.64 33.5 2.5 Solid waste Lump sum 84.7 1 84.7 16.94 8.0 5.0 8.74 2.96 60.0 2.6 Protection of flora and fauna Lump sum 280.0 1 280.0 56.0 80.0 60.0 50.0 30.0 60.0 2.7 Community health & safety Lump sum 100.0 1 100.0 20.0 20.0 10.0 25.0 20.0 25.0 2.8 Occupational health & safety Lump sum 111.8 1 111.8 22.36 40.0 30.0 12.6 9.20 20.0 Subtotal 2055.81 411.162 397.43 585.95 212.37 465.71 424.35 Operational phase (Table EMP-3) IA IA IA IA IA 3.1 Inspection of embankment CNY 1/yr 46 15.0 8.0 - 8.0 15.0 safety 3.2 Maintenance of embankments CNY 1/yr 31.0 10.0 5.0 6.0 10.0 3.3 Maintenance of vegetation CNY 1/yr 26.0 8.0 5.0 - 5.0 8.0 3.4 Reservoir ecological CNY 1/yr 1.5 1.5 flow-comply* 3.5 Noise from pump stations CNY 1/yr 1.5 1.5 3.6 Update and implement EMP CNY 1/yr 1.5 1.5 1.0 1.5 1.5 121

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No. Cost ADB Unit Total PM Item Unit unit per Shouguang Changle Gaomi Qingzhou Huantai loan cost cost O s year Subtotal 113.0 34.5 21.0 1.0 22.0 34.5 MONITORING (Table EMP-4) (costs are for compliance monitoring only; internal monitoring is part of CSC contracts) 4. Monitoring during construction (costs paid by contractors in their bids) Contractor Contractor Contractor Contractor Contractor 4.1 Quality of sewer from 4 times/a 22.1 4.8 1.0 6.9 3.0 6.4 work-camp 4.2 Construction wastewater 4 times/a 43.9 6.4 2.8 11.75 8.9 14.05 including water quality downstream of reservoir 4.3 Ambient air 4 times/a 9.8 2.4 2.4 1.8 2.0 1.2 4.4 Noise 4 times/a 8.4 3.0 1.2 1.8 1.8 0.6 Subtotal 83.6 16.6 7.4 22.25 15.7 22.65 5. Monitoring during operation (costs to be paid by each county IA) IA IA IA IA IA 5.1 Water quality (CNY10,000/year) 2 times/a 15.5 4.8 2.1 1.0 2.8 4.8 5.2 Groundwater quality 2 times/a 7.4 1.2 1.2 2.0 1.8 1.2 5.3 Noise 2 times/a) 5.0 1.5 1.0/a- 0.5 1.0 1.0 - - 5.4 Vegetation survival 17.2 5.0 2.0 2.0 3.2 5.0 Subtotal 45.1 12.5 6.3 5.5 8.8 12.0 TRAINING (Table EMP-6) 6.1 Procurement Participant/d 0.045 50 4.5 0.9 4.5 6.2 EMP implementation Participant/d 0.045 50 4.5 0.9 4.5 6.3 Wetland/ river management Participant/d 0.045 50 4.5 0.9 4.5 6.4 Emergency preparedness Participant/d 0.044 50 2.2 0.44 2.2 Subtotal 200 15.7 3.14 15.7 Grand total (xCNY10,000) 2396.61 19.7 464.23 623.85 244.32 515.41 496.7 37.4 3,928,86 32,2 761,033 1,022,705 400,525 844,934 814,262 60,322 Grand total (USD) 9 95 100% 0.8 19.4% 26.0% 10.2% 21.5% 20.7% 1.5% Proportion of total (%) % *Annual assessment of compliance with official requirements for release of minimum ecological flows.

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I. Mechanisms for Feedback and Adjustment

26. Based on environmental inspection and monitoring reports, the PMO and PIOs shall decide, in consultation with the LIEC, whether (i) further mitigation measures are required as corrective actions, or (ii) some improvements are required for environmental management practices. The effectiveness of mitigation measures and monitoring plans will be evaluated by a feedback reporting system. Adjustment to the EMP will be made, if necessary. The PMO Environmental Officers will play a critical role in the feedback and adjustment mechanism.

27. If during inspection, substantial deviation from the EMP is observed or any changes are made to the project that may cause substantial adverse environmental impacts or increase the number of affected people, then the PMO and PIOs will immediately consult with ADB and form an environmental assessment team to conduct additional environmental assessment. If necessary, further public consultation will be undertaken. The revised DEIAs and project EIA, including this EMP, will be submitted to the ADB for review, appraisal, and public disclosure. The revised EMP will be passed to the contractors, CSCs and OPFs for implementation.

124 Appendix 1

DRAFT TERMS OF REFERENCE FOR ENVIRONMENTAL POSITIONS

1. PMO Environment Officer

A. Background

1. Development projects supported by the Asian Development Bank (ADB) routinely include a project management office (PMO). The PMO is responsible for project implementation and comprises the provincial and/or municipal agencies involved in the project. Compliance with the loan and project agreements include implementation of an environment management plan (EMP), which is prepared as part of the project environment impact assessment. The EMP is the critical guiding document to manage, monitor, and report upon potential project environmental impacts. Implementation of the EMP is a full-time task. For this reason, the PMO assigns at least one full-time officer for this role. These terms of reference describe the requirements for this officer.

B. Scope and Duration of Work

2. The officer will work on behalf of the PMO to implement the project EMP. The officer will report directly to the PMO. The position is for the entire project duration (6 years).

C. Qualifications

3. The officer will have: (i) a bachelor’s degree or higher in environmental management or related field; (ii) at least 5 years of experience in environmental management, monitoring, and/or impact assessment; (iii) ability to communicate and work effectively with local communities, contractors, and government agencies; (iv) ability to analyze data and prepare technical reports; (v) willingness and health to regularly visit the project construction sites and in different seasons; and (vi) ideally, proficiency in spoken and written English.

D. Detailed Tasks

4. The PMO environment officer will have a detailed understanding of the project EMP and supporting documents, including the domestic environmental reports, the project environmental impact assessment (EIA), and project environmental assurances. The officer will have the following tasks.

(i) Assess whether the EMP requires updating due to any changes in project design, which may have occurred after the EMP was prepared. (ii) Distribute the Chinese language version of the EMP to all relevant agencies, including the implementing agencies, and provincial and municipal agencies for environment protection. This should occur at least 3 months before construction begins. (iii) Conduct meetings with agencies as necessary to ensure they understand their specific responsibilities described in the EMP. (iv) Ensure that relevant mitigation, monitoring, and reporting measures in the EMP are included in the bidding documents, contracts, and relevant construction plans. (v) Confirm that the implementing agencies responsible for the internal environment monitoring described in the EMP understand their tasks and will implement the monitoring in a timely fashion.

Appendix 1 125

(vi) At least 2 months before construction begins, establish and implement the project grievance redress mechanism (GRM) described in the EMP. This will include: (a) preparation of a simple table and budget identifying the type, number, and cost of materials needed to inform local communities about the GRM and starting dates and scope of construction; (b) design, prepare, and distribute these materials, and plan and conduct the community meetings; (c) prepare a form to record any public complaints; (d) preparation of a summary table to record all complaints, including dates, issues, and how they were resolved; and (e) ensure that all relevant agencies, including contractors, understand their role in the GRM. (vii) Prior to construction, ensure that the implementation agencies and their contractors have informed their personnel, including all construction workers, of the EMP requirements. This will include all mitigation measures relating to impacts to air, water, noise, soil, sensitive sites, ecological values, cultural values, worker and community health and safety, respectful behavior when communicating with local communities, and responding to and reporting any complaints. (viii) During project construction, make regular site visits with the loan implementation environment consultant (LIEC) to assess progress, meet with contractors and/or local communities, and assess compliance with the EMP. (ix) Ensure that all relevant agencies submit required progress reports and information, including environmental monitoring and reports of any issues or grievances. (x) Compile, review, and store environmental progress reports from the implementation agencies, records of any grievances, and any other relevant issues. Maintain digital copies of all information. When necessary, enter data into summary tables in digital format (e.g., to transfer records of grievances from hard copy forms). Ensure that all information is stored in the PMO filing system, backed up, and can be easily retrieved. (xi) Prepare semiannual environment progress reports. (xii) Work closely with the PMO, implementation agencies, loan implementation consultants, and other agencies and personnel as necessary to conduct these tasks.

E. Reporting Requirements

5. Semiannual environment monitoring reports using the template provided by ADB or a domestic format reviewed and approved by ADB.

F. Logistical Support Provided by the PMO to the Environment Officer

(i) Provision of hard and soft copies of the project EMP, domestic and project environmental reports, feasibility study reports, loan and project agreements, maps, and other supporting materials as necessary to ensure the officer can implement the tasks. (ii) Vehicle transport, office materials, and other logistical support, as necessary for the officer to visit the project construction sites and local communities, arrange and conduct meetings, and prepare and distribute consultation materials. (iii) Overall coordination, including review of the draft semiannual monitoring reports, and final responsibility for submission of the monitoring reports to ADB.

126 Appendix 1

2. Project Implementation Office Environment Officer

A. Background

6. The project will be coordinated by a PMO. Overall coordination of the project EMP is the responsibility of the PMO environment officer. At the field level, implementation of the EMP will be undertaken by the project implementation office (PIO) in each of the five project counties. For this purpose, the PIO requires a PIO environment officer.

B. Scope and Duration of Work

7. The officer will work on behalf of the PIO to implement the project EMP. The officer will report directly to the PIO manager and work closely with the county environment protection bureau (EPB), environment monitoring station (EMS), and PMO environment officer. The position is for the entire project duration (6 years).

C. Qualifications

8. The officer will have: (i) a bachelor’s degree or higher in environmental management or related field; (ii) at least 5 years of experience in environmental management, monitoring, and/or impact assessment; (iii) ability to communicate and work effectively with local communities, contractors, and government agencies; (iv) ability to analyze data and prepare technical reports; (v) willingness and health to regularly visit the project construction sites and in different seasons; and (vi) ideally, proficiency in spoken and written English.

D. Detailed Tasks

9. The PIO environment officer will have a detailed understanding of the project EMP and supporting documents, including the domestic environmental reports, project EIA, and project environmental assurances. The officer will have the following tasks.

(i) Work closely with the PMO environment officer, EPB, EMS, contractors, construction supervision companies, and all other relevant agencies to implement the EMP. (ii) Distribute the Chinese language version of the EMP to all relevant agencies, including the implementing agencies, provincial and municipal agencies for environment protection. This should occur at least 3 months before construction begins. (iii) Conduct meetings with agencies as necessary to ensure they understand their specific responsibilities described in the EMP. (iv) Ensure that contractors implement the relevant mitigation measures in the EMP. (v) Implement the monitoring and reporting requirements in the EMP, including timely submission of progress reports to the PIO and PMO environment officer. (vi) Implement the project GRM. (vii) Make regular inspections of construction sites to assess progress, meet with contractors and/or local communities, and assess compliance with the EMP. (viii) Maintain digital records of all progress and information. (ix) Support the PMO environment officer in all of their tasks.

E. Reporting Requirements

Appendix 1 127

10. Monthly reports to the PIO and PMO environment officer.

3. Loan Implementation Environmental Consultant

A. Background

11. The project will be coordinated by a PMO, whose overall responsibility includes implementation of the project EMP. At the field level, the project will be implemented by a PIO in each of the five project counties. The PMO and PIOs will be assisted by a loan implementation consultant team. The loan implementation environmental consultant (LIEC) will be a part of this team and will support the PMO and PIOs to implement the project EMP.

B. Scope and Duration of Work

12. This position could be a firm or an individual engaged by the PMO. It is an independent position. It is not part of the PMO in-house environmental team or the implementing agencies. The specialist will report directly to the PMO. The position is for the entire project duration (6 years). The LIEC should be recruited as soon as possible after loan effectiveness, as the first task is to confirm project environmental readiness.

C. Qualifications

13. The specialist will have: (i) a bachelor’s degree or higher in environmental management or related field; (ii) at least 8 years of experience in environmental management, monitoring, and/or impact assessment; (iii) familiarity with ADB project management requirements and national environmental management procedures; (iv) ability to communicate and work effectively with local communities, contractors, and government agencies; (v) ability to analyze data and prepare technical reports; (vi) willingness and health to regularly visit the subproject sites; and (vii) proficiency in spoken and written English.

D. Tasks

14. Working closely with the PMO and PIO environmental officers, the LIEC will do the following.

15. Before construction:

(i) Ensure project environmental readiness, including: (i) all contractor contracts include, and will comply with, the EMP; and (iii) relevant sections of the EMP are incorporated in construction plans and contracts. (ii) Assist the PMO and PIOs to implement the GRM, including: (i) establish and publicize the GRM; and (ii) collate and evaluate grievances received. (iii) Develop procedures to: (i) monitor EMP implementation progress; (ii) collate and evaluate data collected in the EMP environmental monitoring program; and (iii) prepare and submit the semiannual environmental monitoring reports to ADB (to continue until project completion report). (iv) Undertake training of project agencies as required by the EMP training plan. (v) Provide hands-on support and on-the-job training to the PMO, implementing agencies, and contractors on the specific requirements of the EMP as required.

128 Appendix 1

16. During project implementation:

(i) Undertake site visits to all implementing agencies during subproject construction and operating phase. (ii) Assist in the ongoing public consultation process as described in the project EIA. (iii) Conduct EMP compliance assessments, identify any environment-related implementation issues, and propose necessary responses in corrective action plans. (iv) Undertake training of project agencies as required by the EMP training plan. (v) Assist the PMO to prepare semiannual environmental monitoring progress reports for submission to ADB.