Initial Environment and Social Examination Project Number: 50164-001 October 2018 China Water Environment Group Investment Limited and Xinkai Water Environment Investment Limited Integrated Wastewater Management Project (People’s Republic of China) Prepared by China Water Environment Group Limited This Initial Environment and Social Examination is a document of the Borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. 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. Dali Erhai Lake Basin Wastewater Interception Project Initial Environmental and Social Examination October 2018 China Water Environment Group Limited Table of Content EXECUTIVE SUMMARY ....................................................................................................... I A. Introduction ....................................................................................................................................... i B. The Project ........................................................................................................................................ i C. Baseline Environment and Social Conditions ...................................................................................ii D. Impacts and Mitigation Measures .................................................................................................... iii E. Public Consultation and Grievance Redress Mechanism ................................................................ iii F. Environmental and Social Management Plan ..................................................................................iv G. Conclusion .......................................................................................................................................iv I. INTRODUCTION ......................................................................................................... 1 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ......................................... 2 A. Policy Framework ............................................................................................................................ 2 B. Legislative Framework for Environmental and Social Impact Assessment in PRC......................... 2 C. International Agreements ................................................................................................................. 5 D. Applicable PRC and ADB Policies and Assessment Categories .................................................... 5 E. Assessment Standards .................................................................................................................... 6 III. DESCRIPTION OF PROJECT ................................................................................... 10 A. Overview ........................................................................................................................................ 10 B. Subproject 1: Wase and Shuanglang Area Lake Basin Wastewater Interception ........................ 12 C. Subproject 2: Shangguan Area Lake Basin Wastewater Interception ........................................... 15 D. Subproject 3: Xizhou Area Lake Basin Wastewater Interception .................................................. 17 E. Subproject 4: Yinqiao and Wanqiao Area Lake Basin Wastewater Interception ........................... 18 F. Subproject 5: Dali Town Area Lake Basin Wastewater Interception ............................................. 20 G. Subproject 6: Xiaguan North Area Lake Basin Wastewater Interception ...................................... 21 H. Project Schedule ............................................................................................................................ 22 I. Manpower Requirement................................................................................................................. 23 J. Implementation Arrangement ........................................................................................................ 23 IV. ANALYSIS OF ALTERNATIVES ............................................................................... 25 A. Design Options for Wastewater Treatment Plant Layout .............................................................. 25 B. Design Options for Wastewater Treatment Process ..................................................................... 26 C. Design Options for the Interception Pipeline Construction Method ............................................... 27 D. Design Options for Subproject 1: Wase and Shuanglang Area Lake Basin Wastewater Interception .................................................................................................................................... 28 E. Design Options for Subproject 2: Shangguan Area Lake Basin Wastewater Interception ............ 30 F. Design Options for Subproject 3: Xizhou Area Lake Basin Wastewater Interception ................... 31 G. Design Options for Subproject 4: Yinqiao and Wanqiao Area Lake Basin Wastewater Interception .................................................................................................................................... 31 H. Design Options for Subproject 5: Dali Town Area Lake Basin Wastewater Interception .............. 32 I. Design Options for Subproject 6: Xiaguan North Area Lake Basin Wastewater Interception ....... 34 V. DESCRIPTION OF ENVIRONMENT AND SOCIAL CONDITIONS ........................... 35 A. Environmental Setting .................................................................................................................... 35 B. Physical Environment of the Project Site ....................................................................................... 38 C. Ecological Resources .................................................................................................................... 41 D. Protected Areas and Physical Cultural Resources ........................................................................ 41 E. Socio-Economic Conditions ........................................................................................................... 43 F. Existing and Predicted Climate Change ........................................................................................ 45 G. Associated Infrastructure Projects and Facilities ........................................................................... 46 VI. ANTICIPATED ENVIRONMENTAL AND SOCIAL IMPACTS AND MITIGATION MEASURES ....................................................................................................................... 49 A. Design and Planning Phase and Avoided Impacts ........................................................................ 49 B. Pre-Construction Phase ................................................................................................................. 50 C. Construction Phase ........................................................................................................................ 53 D. Operational Phase ......................................................................................................................... 63 E. Indirect, Induced, and Cumulative Impacts ................................................................................... 68 F. Climate Change ............................................................................................................................. 69 VII. PUBLIC CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE 71 A. Legislative Framework for Public Consultation and Information Disclosure .................................. 71 B. Information Disclosure ................................................................................................................... 71 C. Public Consultation ........................................................................................................................ 72 D. Future Information Disclosure and Public Consultation Program .................................................. 74 VIII. GRIEVANCE REDRESS MECHANISM ..................................................................... 75 IX. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN........................................ 77 X. CONCLUSIONS ........................................................................................................ 78 ATTACHMENT 1: ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN ATTACHMENT 2: ENVIORNMENTAL AUDIT REPORT ATTACHMENT 3: SOCIAL AUDIT REPORT ATTACHMENT 4: LIST OF IUCN STATUS OF PROTECTED ANIMAL SPECIES FROM THE PROJECT AREA List of Tables Table III-1 Applicable Environmental Laws Table III-2 National and Local Administrative Regulations on Environmental Issues Table III-3 Relevant Laws and Regulations on Social Issues Table III-4 Applicable Environmental Guidelines Table III-5 Applicable Environmental Standards Table III-6 List of Subprojects under the Project Table III-7 Environmental Quality Classes in the Project Area Table III-8 Comparison of PRC and WBG Ambient Air Quality Standards Table III-9 Environmental Quality Standards for Noise (equivalent sound level LAeq: dB) Table III-10 Surface Water Quality Standard (Unit: mg/L, pH is dimensionless.)