Environmental Impact Assessment Project Number: 47052 July 2014 People’s Republic of China: Low Carbon District Heating Project in Hohhot in Inner Mongolia Autonomous Region Prepared by Hohhot City Development Investment and Operation Company and Hohhot Chengfa Heating Company for Asian Development Bank This 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. CURRENCY EQUIVALENTS (as of 25 June 2014) Currency unit – Yuan (CNY) CNY1.00 = $ 0.1603 $1.00 = CNY 6.2402 ABBREVIATIONS ADB Asian Development Bank AP Affected Person ASL Above Sea Level CEMS Continuous Emissions Monitoring System CHP Combined Heat and Power CNY Chinese Yuan CSEMP Construction Site Environmental Management Plan EA Executing Agency EHS Environment, Health and Safety EHSS Environment, Health and Safety Specialist EHSU Environment, Health and Safety Unit EIA Environmental Impact Assessment EMoP Environmental Monitoring Plan EMP Environmental Management Plan EMS Environmental Monitoring Station EPB Environmental Protection Bureau FGD Flue-Gas Desulfurization FSR Feasibility Study Report GDP Gross Domestic Product GHG Green House Gas GIMAR Government of Inner Mongolia Autonomous Region GIP Good International Practice GRM Grievance Redress Mechanism HCDIO Hohhot City Development Investment and Operation Company HDPE High Density Polyethylene HES Heat Exchange Station HH Household HSP Heat Supply Plant IA Implementing Agency IEE Initial Environmental Examination IMAR Inner Mongolia Autonomous Region IT Interim Target LIC Loan Implementation Consultant MEP Ministry of Environmental Protection ii MSDS Material Safety Data Sheet NG Natural Gas OM Operations Manual, ADB PCR Physical Cultural Resources PPCU Project Public Complaint Unit PPE Personnel Protective Equipment PPTA Project Preparatory Technical Assistance PRC People’s Republic of China PUR Polyurethane RTU Remote Terminal Unit SCADA Supervisory Control and Data Acquisition SPS Safeguard Policy Statement, ADB TA Technical Assistance UPS Uninterrupted Power Supply WB World Bank WHO World Health Organization WWTP Wastewater Treatment Plant WEIGHTS AND MEASURES BOD5 Biochemical Oxygen Demand, five days CaCO3 Calcium Carbonate cm Centimeter CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen GJ Gigajoules GWh Gigawatt Hour ha Hectare kg Kilogram km Kilometer kV Kilovolt kWh Kilowatt Hour Leq Equivalent Continuous Noise Level m Meter m/s Meters per Second m³ Cubic Meters mg/l Milligrams per Liter mg/m3 Milligrams per Cubic Meter MW Megawatt NO2 Nitrogen Dioxide iii NOx Nitrogen Oxides oC Degrees Celsius pH A measure of the acidity or alkalinity of a solution PM10 Particulate Matter smaller than 10 micrometers PM2.5 Particulate Matter smaller than 2.5 micrometers SO2 Sulfur Dioxide t/h Tons per Hour TSP Total Suspended Particulates iv TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................... XII A. INTRODUCTION ........................................................................................................................... XII B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK FOR ENVIRONMENTAL IMPACT ASSESSMENT .... XII C. PROJECT SCOPE ........................................................................................................................ XII D. IMPLEMENTATION ARRANGEMENTS .............................................................................................. XII E. BUDGET AND TIME SCHEDULE ..................................................................................................... XII F. DESCRIPTION OF THE ENVIRONMENT .......................................................................................... XIII G. ENVIRONMENTAL BASELINE ........................................................................................................ XIV H. ANTICIPATED IMPACTS AND MITIGATION MEASURES .................................................................... XIV I. ALTERNATIVE ANALYSIS .............................................................................................................. XV J. INFORMATION DISCLOSURE AND PUBLIC CONSULTATIONS ............................................................ XV K. GRIEVANCE REDRESS MECHANISM ............................................................................................. XV L. ENVIRONMENTAL MANAGEMENT PLAN ......................................................................................... XV M. CONCLUSION ............................................................................................................................. XVI I. INTRODUCTION ............................................................................................................................ 1 A. THE PROJECT .............................................................................................................................. 1 B. REPORT PURPOSE ....................................................................................................................... 1 C. APPROACH TO EIA PREPARATION ................................................................................................. 2 D. REPORT STRUCTURE .................................................................................................................... 6 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ........................................................... 8 A. PRC ENVIRONMENTAL LEGAL FRAMEWORK ................................................................................... 8 B. PRC ENVIRONMENTAL IMPACT ASSESSMENT FRAMEWORK ............................................................ 9 C. PROJECT DOMESTIC EIA REPORT APPROVAL STATUS AND CONDITIONS ....................................... 10 D. RELEVANT INTERNATIONAL AGREEMENTS .................................................................................... 10 E. OTHER RELEVANT GUIDELINES ................................................................................................... 11 F. APPLICABLE STANDARDS ............................................................................................................ 11 G. APPLICABLE ADB POLICIES, REGULATIONS AND REQUIREMENTS .................................................. 17 III. PROJECT DESCRIPTION ........................................................................................................... 19 A. THE PROJECT ............................................................................................................................ 19 B. PROJECT RATIONAL .................................................................................................................... 19 C. PROJECT SCOPE ........................................................................................................................ 22 D. PROJECT LOCATION ................................................................................................................... 23 E. KEY PROJECT FEATURES ............................................................................................................ 24 F. SPECIFIC DESIGN DETAILS .......................................................................................................... 37 G. IMPLEMENTATION ARRANGEMENTS .............................................................................................. 52 H. BUDGET AND TIME SCHEDULE ..................................................................................................... 53 IV. DESCRIPTION OF THE ENVIRONMENT ................................................................................... 54 A. LOCATION .................................................................................................................................. 54 B. PHYSICAL RESOURCES ............................................................................................................... 54 v C. ECOLOGICAL AND SENSITIVE RESOURCES ................................................................................... 59 D. SOCIO-ECONOMIC AND CULTURAL RESOURCES ........................................................................... 64 E. ENVIRONMENTAL BASELINE MONITORING .................................................................................... 67 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ........................................................ 84 A. ANTICIPATED PRE-CONSTRUCTION PHASE IMPACTS AND MITIGATION MEASURES .......................... 84 B. ANTICIPATED CONSTRUCTION PHASE IMPACTS AND MITIGATION MEASURES ................................. 85 C. ANTICIPATED OPERATION PHASE IMPACTS AND MITIGATION MEASURES ....................................... 95 D. ANTICIPATED POSITIVE OPERATION PHASE IMPACTS .................................................................. 126 VI. ALTERNATIVE ANALYSIS ........................................................................................................ 127 A. NO PROJECT ALTERNATIVE ....................................................................................................... 127 B. HEAT SOURCE.......................................................................................................................... 127 C. HSP FUEL ............................................................................................................................... 127 D. LOW NOX GAS BOILERS ..........................................................................................................