Environmental Monitoring Report Project Number: 42382-013 February 2016 PRC: Liaoning Small Cities and Towns Development Demonstration Sector Project Prepared by: Liaoning Urban Construction and Renewal Project Office and HJI Group Co., USA This environmental monitoring report 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. 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. Ref No: LNS1-EMR-09 PEOPLE’S REPUBLIC OF CHINA LIAONING SMALL CITIES AND TOWNS DEVELOPMENT DEMONSTRATION SECTOR PROJECT (ADB Loan No. 2550-PRC) Semi-annual Environmental Monitoring Report For the Second Half of 2015 Prepared for Asian Development Bank Prepared by Liaoning Urban Construction and Renewal Project Office and HJI Group Co., USA February 2016 ABBREVIATIONS ADB Asian Development Bank BGTG Beizhen City Goubangzi Town Government BEPMS Beizhen Environmental Protection and Monitoring Station CNY Chinese Yuan DMMD Donggang City Municipal Management Department DEPMS Donggang Environment Protection and Monitoring StationEIA Environmental Impact Assessment EMO Environmental Management Office EMP Environmental Management Plan EPMS Environmental Protection and Monitoring Station GEPMS Gaizhou Environmental Protection and Monitoring Station GMG Gaizhou City Municipal Government (GMG) IA Implementing Agency LEPMS Linghai Environmental Protection and Monitoring Station LMMD Linghai City Municipal Management Department LPEPB Liaoniong Provincial Environmental Protection Bureau LPG Liaoning Provincial Government MEMR Monthly environmental management reports SEMR Semiannual Environmental Monitoring Report SEIA Summary Environment Impact Assessment i TABLE OF CONTENTS I. INTRODUCTION .................................................................................................... 1 A. Basis of Semiannual Environmental Monitoring Report .....................................2 B. Environmental Procedure Review ........................................................................2 C. Legal Requirements ..............................................................................................3 II DONGGANG URBAN ROAD SUBPROJECT ........................................................ 5 A. Scope of Subproject ..............................................................................................5 B. Status and Progress ...............................................................................................5 C. Environmental Management Office .....................................................................5 D. Environmental Monitoring Results ......................................................................6 E. Implementation of Mitigation Measures ............................................................28 F. Compliance with Environmental Covenants ......................................................29 G. Training ..............................................................................................................29 H. Capacity-Building Progress ................................................................................29 I. Issues and Recommendations .............................................................................29 III GAIZHOU URBAN ROAD SUBPROJECT ........................................................... 30 A. Scope of Subproject ............................................................................................30 B. Status and Progress .............................................................................................30 C. Environmental Management Office ...................................................................30 D. Environmental Monitoring Results ....................................................................31 E. Implementation of Mitigation Measures ............................................................33 F. Compliance with Environmental Covenants ......................................................34 G. Training ..............................................................................................................34 H. Capacity-Building Progress ................................................................................35 I. Issues and Recommendations .............................................................................35 IV GOUBANGZI URBAN ROAD SUBPROJECT ...................................................... 36 A. Scope of Subproject ............................................................................................36 B. Status and Progress .............................................................................................36 C. Environmental Management Office ...................................................................36 D. Environmental Monitoring .................................................................................37 E. Implementation of Mitigation Measures ............................................................40 F. Compliance with Environmental Covenants ......................................................41 G. Training ..............................................................................................................41 H. Capacity-Building Progress ................................................................................41 I. Issues and Recommendations .............................................................................41 V OTHER SUBPROJECTS ...................................................................................... 42 VI CONCLUSIONS.................................................................................................. 43 Appendix A: Environment Monitoring Location Map for Donggang Subproject .. 44 Appendix B: Environment Monitoring Location Map for Gaizhou Subproject ...... 46 Appendix C: Environment Monitoring Location Map for Goubangzi Subproject .. 47 ii I. INTRODUCTION This semiannual environmental report describes the implementation of the environmental monitoring and implemented mitigation measures recommended in the environmental impact assessment (EIA) reports and the summary analyses of the environmental monitoring data collected from 1 July to 31 December 2015 for the Liaoning Small Cities and Towns Development Demonstration Project (the Project). Based on the Project Agreement, Each implementing agency (IA) shall construct, operate, maintain and monitor the Project facilities in strict conformity with (i) all applicable laws and regulations including national, regional and local regulations and standards on environmental protection, health, labor, and occupational safety and ADB’s Environment Policy (2003); and (ii) all environmental mitigation and monitoring measures detailed in the EIAs, Summary of Environment Impact Assessment(SEIA) and Environment Management Plan (EMP) for the Project under the guidance of the Liaoning Provincial Government (LPG),the local Environmental Protection Bureaus(EPBs) or other environmental monitoring centers. The LPG, the local EPBs and the IAs shall review any changes to the project design that may have a potential for causing negative environmental impacts, and adjust environmental monitoring and mitigation measures accordingly in consultation with ADB. It is also requested in the Project Agreement that the LPG and the concerned local governments shall ensure that an adequate number of full-time personnel and sufficient resources be provided to monitor the implementation of the EMP under the guidance of the provincial and local EPBs, or other environmental monitoring centers. The IAs shall provide monthly environmental monitoring reports during the construction period to the Provincial Project Management Office (PMO), who shall prepare and submit to ADB semiannual environmental reports in a format acceptable to ADB until Loan closure. The Project is classified as environment category A. The Project supports climate change adaptation including (i) incorporation of climate change issues, such as energy efficient measures, in urban master plans; (ii) comprehensive water management, such as long-term water availability forecasting for new development areas and adopting comprehensive water balance measures during project implementation; (iii) sustainable wastewater and solid waste management including sludge digestion and biogas extraction; (iv) improved urban roads management and reduced pollution from cars through improved connectivity and better travel conditions; and (v) promotion of clean energy for more efficient central heating. The Project includes seven subprojects, including three core subprojects located in Donggang City, Kazuo Mongolian Autonomous County, and Linghai City. The Donggang core subproject has three components: (i) urban roads and bridge; (ii) urban drainage and wastewater treatment; and (iii) river embankment improvement and urban open space. The Kazuo core subproject includes a water supply component. The Linghai core subproject includes the construction and upgrading of roads and the associated facilities. In addition, there are four subsequent subprojects: a) Goubangzi urban infrastructure 1 subproject; b) Gaizhou urban infrastructure subproject; c) Xifeng urban water