Initial Environmental Examination August 2015 PRC: Qingdao Water Resources and Wetland Protection Project Prepared by Jiaozhou City Government for the Asian Development Bank. This initial environmental 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 on ADB’s 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. Initial Environmental Examination Project number: 2494 July 2008; updated August 2015 People’s Republic of China: Qingdao Water Resources and Wetland Protection Project Prepared by the Jiaozhou City Government for the Asian Development Bank CONTENTS Page I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 3 III. DESCRIPTION OF THE ENVIRONMENT 6 A. General Project Setting and Physical Environment 6 B. River System and Hydrology 6 C. Water Quality and Pollution Sources 7 D. Ecological Environment 9 E. Social and Economic Conditions 11 IV. FORECASTING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 11 A. Environmental Benefits and Impacts 11 B. Environmental Impacts and Mitigation Measures during Construction Phase 13 C. Environmental Impacts and Mitigation Measures during Operation Phase 15 D. Due Diligence Review 16 E. Resettlement 17 F. Environmental Management Plan 17 V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN 17 A. Institutional Arrangements 17 B. Environmental Monitoring 18 VI. PUBLIC CONSULTATION AND DISCLOSURE 20 A. Public Consultation 20 B. Information Disclosure 20 VII. FINDINGS AND RECOMMENDATIONS 21 VIII. CONCLUSIONS 21 ANNEX 1: REFERENCES 22 A. REGIONAL STUDIES AND REPORTS 22 B. ENVIRONMENTAL PROTECTION LAWS AND REGULATIONS 22 C. TECHNICAL POLICIES FOR POLLUTION PREVENTION & CONTROL 23 D. SOCIAL-ECONOMIC DEVELOPMENT/ENVIRONMENT PROTECTION PLANS & REGULATIONS 23 E. TECHNIQUE GUIDELINE, RULES AND CRITERION 23 F. ENVIRONMENTAL QUALITY STANDARDS 24 G. POLLUTANTS DISCHARGE AND CONTROL STANDARDS 24 ANNEX 2: ENVIRONMENTAL MANAGEMENT PLAN 25 ANNEX 3: ENVIRONMENTAL MONITORING PLAN 28 Page i FIGURES: Figure 1: Location Map of the Shandong Province and Jiaozhou County ...................................... 2 Figure 2: Location Map of Project Area ............................................................................................. 2 Figure 3: Location Map and Contract packages for Component 1 .................................................. 4 Figure 4: Location Map and Contract Packages for Component 2 .................................................. 5 Figure 5: Current Situation of Jiaozhou Wastewater Discharge ...................................................... 8 Figure 6: Major Pollution sources of Jiaozhou Bay ......................................................................... 10 Figure 7: Comparison between situations of Hucheng River (with and without project) ............ 12 Figure 8: COD Concentration Field Before and After the WWTP Operation .............................. 13 TABLES: Table 1: Summary of Project Cost Estimates ..................................................................................... 6 Table 2: Environmental Quality Standard for Surface Water (GB3838-2002) ............................... 7 Table 3: Pollution Loading Rates to Jiaozhou Bay（2004）(t/a) ................................................... 10 Table 4: Rate of incidence of stomach diseases in Jiaozhou (per 100,000) ..................................... 11 Table 5: Summary of pollutants load change of project rivers ....................................................... 12 Table 6: Routine monitoring data of water quality at Jiaozhou Wastewater Treatment Plant in 2007 (units in mg/L except for pH) ............................................................................................ 16 Table 7: Environmental Reporting Plan ........................................................................................... 19 Page ii CURRENCY EQUIVALENTS (as of 23 April 2008) Currency Unit – RMB $1.00 = RMB 6.9837 ABBREVIATIONS ADB – Asian Development Bank NO2 – nitrogen dioxide A2/O – anaerobic/anoxic/oxidation NH3 – ammonia BOD – biochemical oxygen demand O&M – operation and maintenance COD – chemical oxygen demand pH – factor of acidity CSC – construction supervision PMO – project management office consultant PM10 – particulate matter <10 DI – design institute microns diameter EIA – environmental impact PMU – project management unit assessment PPTA – project preparatory technical EMP – environmental management assistance plan PRC – the People’s Republic of EPB – Environmental Protection China Bureau QEPB – Qingdao Environmental FSR – feasibility study report Protection Bureau GDP – gross domestic product QMG – Qingdao Municipal JCG – Jiaozhou City Government Government JZEPB – Jiaozhou Environmental QPMO – Qingdao project management Protection Bureau office H2S – hydrogen sulfide RP – resettlement plan IA – Implementing Agency SO2 – sulfur dioxide IEE – Initial Environmental SS – suspended solids Examination TA – technical assistance MEP – Ministry of Environmental TSP – total suspended particles Protection WWTP – wastewater treatment plant NH3-N – ammonia nitrogen WEIGHTS AND MEASURES dB – decibel m2 – square meter ha – hectare mm – millimeter mg/L – milligram per liter m/s – meter per second km – kilometer m3/day – cubic meter per day km2 – square kilometer t/y – tonne per year NOTES (i) The fiscal year of the Government coincides with the calendar year. (ii) In this report, "$" refers to US dollars. This initial environmental 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. Page iii I. INTRODUCTION 1. Background. Jiaozhou is a county level city in Qingdao, located to the west of the main city of Qingdao, on the northwest coast of the Jiaozhou Bay.1 Jiaozhou has a total area of 1,210 km2 and a total population of 780,000 in 2005, of which 328,800 were residents in the main urban area. Jiaozhou has formed its leading industrial systems of machinery, electronics, chemical, building material and textile and food, etc. It is an important industrial processing and warehousing logistic base in the economic zone around Jiaozhou Bay. 2. Rapid urban and industrial development in Qingdao and Jiaozhou has had detrimental effects on its water resources and on the overall condition of the environment. Jiaozhou City Government (JCG) and Qingdao Municipal Government (QMG) are aware of the need to address these problems and strengthen the capacity of the institutions that are mandated to manage water resources and environment in order to meet its development objectives and targets. They are also aware of the need for a comprehensive and integrated water resource and environmental management approach to address the complex and interrelated problems as a requisite for sustainable economic development and improved quality of life within the Jiaozhou Bay area. 3. QMG and JCG requested ADB assistance to reduce flooding and pollution impacts and improve environmental management in the urban and surrounding areas, including the downstream Jiaozhou bay and wetland, and the newly developed Shaohai lake. This Project will also serve as pilot or demonstration for further development of other economic/industrial zones around the bay area. This is consistent with QMG’s Master Plan for the Jiaozhou Bay which aims for a balanced development along with the western and eastern parts of the bay. 4. In accordance with the PRC Environmental Impact Assessment (EIA) Technical Guidelines, a domestic EIA was carried out for the proposed Project by the Jiaozhou Development and Reform Bureau2. The draft EIA report was completed in February 2008 and submitted to the Qingdao EPB for appraisal on 18 March 2008. In the EPB appraisal meeting, representatives and leaders from Qingdao EPB, Jiaozhou EPB, and Jiaozhou Construction Bureau presented their comments to the EIA report. The panel regarded the report as satisfactory to be used as a reference document for further Project processing and approval. OUC updated the EIA report based on EPB comments in April; continued improvement works in May based on ADB comments, and finished the second version EIA in May 2008. 5. The ADB classified the Project as Category B for environmental safeguards.3 This Initial Environmental Examination (IEE) was prepared4 in accordance with ADB’s Environmental Assessment Guidelines (May 2003). The IEE is based on the domestic EIA and includes an Environmental Management Plan (EMP) describing the mitigation measures, institutional responsibilities, and monitoring arrangements. The IEE was drafted between April and July 2008 based on comments received from the Jiaozhou and Qingdao Governments and key-stakeholders,