Initial Environmental Examination Project Number: 50393-002 April 2019 Proposed Loan for People’s Republic of China: Gansu Internet-Plus Agriculture Development Project Prepared by Supply and Marketing Cooperative Gansu Province for the Asian Development Bank CURRENCY EQUIVALENTS (as of 28 March 2019) Currency Unit – Chinese Yuan (CNY) CNY1.00 = €0.13 €1.00 = CNY7.57 ABBREVIATIONS ADB - Asian Development Bank LIEC - Loan implementation environment consultant CNY - Chinese Yuan MEE - Ministry of Environmental Protection CSC - Construction supervision company MEP - Ministry of Environmental Protection EA - Executing Agency Mu - Chinese land unit (1 ha = 15 mu) EHS - Environmental, health and safety PIU - Project Implementation Unit EIA - Environment Impact Assessment PMO - Project Management Office EMA - Environmental monitoring agency PPE - Private participating enterprise EMP - Environmental management plan PRC - People’s Republic of China EEB - Ecology and Environment Bureau REA - Rapid environment assessment FSR - Feasibility Study Report SMC - Supply and marketing cooperative GHG - Greenhouse Gas SMCGP - Supply and Marketing Cooperative Gansu Province GRM - Grievance redress mechanism SPS - Safeguard Policy Statement IA - Implementing Agency TOR - Terms of Reference ICT - Information communication and technology TRTA - Transaction Technical Assistance IEE - Initial environmental examination WHO - World Health Organization LAR - Land Acquisition and Resettlement WSP - Water Supply Plant LIC - Loan implementation consultant WWTP - Wastewater treatment plant WEIGHTS AND MEASURES Biochemical Oxygen mg/l Milligrams per liter BOD5 Demand, five days mg/m3 Milligrams per cubic meter CaCO3 Calcium carbonate Unit of land (equals 1/15 mu cm Centimeter ha) 3 3 CO2 Carbon Dioxide µg/m Micrograms per m NOx Nitrogen oxide COD Chemical Oxygen Demand oC Degrees Celsius A-weighted sound O3 Ozone dB(A) pressure level in decibels The acidity/alkalinity of a pH DO Dissolved oxygen solution kg Kilogram PM Particulate matter km Kilometer PM10 PM <10 micrometers kWh Kilowatt Hour PM2.5 PM <2.5 micrometers Equivalent Continuous RT Refrigerating ton Leq Noise Level SO2 Sulfur Dioxide m Meter t/a Tons per annum m/s Meters per Second t/h Tons per hour m2 Square meters Total suspended TSP m³ Cubic meters particulates NOTE In this report, "€" refers to Euros. 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 the ADB 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. iii TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................ I A. INTRODUCTION ................................................................................................ I B. INSTITUTIONAL FRAMEWORK FOR ENVIRONMENTAL IMPACT ASSESSMENT .......... I C. ENVIRONMENT BASELINE ................................................................................ II D. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES .................. II E. PUBLIC CONSULTATION AND GRIEVANCE REDRESS MECHANISM ...................... IV F. ENVIRONMENTAL MANAGEMENT PLAN ............................................................ IV G. RISKS AND KEY ASSURANCES ........................................................................ IV H. CONCLUSION .................................................................................................. V I. INTRODUCTION ............................................................................................................ 1 A. PROJECT RATIONALE ...................................................................................... 1 B. THE PROPOSED PROJECT ............................................................................... 2 C. ENVIRONMENTAL SAFEGUARDS ....................................................................... 3 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ............................................ 4 A. ADB SAFEGUARD POLICY STATEMENT ............................................................ 4 B. PRC ENVIRONMENTAL LEGAL FRAMEWORK ..................................................... 4 C. PRC ENVIRONMENTAL IMPACT ASSESSMENT FRAMEWORK AND PROCEDURES .. 6 D. PROJECT DOMESTIC EIA REPORT ................................................................... 8 E. RELEVANT INTERNATIONAL AGREEMENTS ........................................................ 8 F. APPLICABLE PRC ENVIRONMENTAL QUALITY STANDARDS ................................ 9 III. PROJECT DESCRIPTION ............................................................................................16 A. PROJECT OVERVIEW ..................................................................................... 16 B. SUBPROJECTS .............................................................................................. 17 C. DUE DILIGENCE FOR ASSOCIATED AND EXISTING FACILITIES ........................... 46 IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) ................................................50 A. LOCATION .................................................................................................... 50 B. GANSU PROVINCE ........................................................................................ 50 C. ENVIRONMENTAL SETTING OF THE SUBPROJECT SITES ................................... 53 D. BASELINE ENVIRONMENT MONITORING .......................................................... 57 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ..........................................63 A. PROJECT AREA OF INFLUENCE AND SENSITIVE RECEPTORS ............................ 63 B. ANTICIPATED PROJECT BENEFITS AND POSITIVE IMPACTS ............................... 63 C. PRE-CONSTRUCTION PHASE ......................................................................... 64 D. CONSTRUCTION PHASE ................................................................................. 65 E. OPERATION PHASE ....................................................................................... 73 F. CLIMATE CHANGE ......................................................................................... 88 G. INDIRECT, INDUCED, AND CUMULATIVE IMPACTS ............................................. 92 VI. ALTERNATIVE ANALYSIS ..........................................................................................94 A. NO PROJECT ALTERNATIVE ........................................................................... 94 B. INTERNET BASED SOCIALIZED AGRICULTURAL SERVICE SYSTEM ..................... 94 C. AGRICULTURAL TECHNOLOGIES ADOPTED ...................................................... 95 iii iv VII. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION .................................96 A. PROJECT INFORMATION DISCLOSURE ............................................................ 96 B. PUBLIC CONSULTATION ................................................................................. 97 C. FEEDBACK FROM PUBLIC CONSULTATIONS ................................................... 100 D. FUTURE CONSULTATIONS AND DISCLOSURE ................................................. 100 VIII. GRIEVANCE REDRESS MECHANISM ...................................................................... 106 IX. ENVIRONMENT MANAGEMENT PLAN ..................................................................... 107 X. ASSURANCES ........................................................................................................... 108 XI. CONCLUSIONS .......................................................................................................... 110 APPENDIX I: ENVIRONMENTAL MANAGEMENT PLAN ..................................................... 111 A. OBJECTIVES ............................................................................................... 111 B. IMPLEMENTATION ARRANGEMENTS .............................................................. 111 C. POTENTIAL IMPACTS AND MITIGATION MEASURES......................................... 114 D. ENVIRONMENT MONITORING PLAN ............................................................... 114 E. INSTITUTIONAL STRENGTHENING AND CAPACITY BUILDING ............................ 115 F. GRIEVANCE REDRESS MECHANISM .............................................................. 139 G. REPORTING REQUIREMENTS ....................................................................... 142 H. PERFORMANCE INDICATORS ........................................................................ 143 I. ESTIMATED BUDGET FOR EMP IMPLEMENTATION ......................................... 143 J. MECHANISMS FOR FEEDBACK AND ADJUSTMENT .......................................... 143 APPENDIX 2: DRAFT TERMS OF REFERENCE FOR ENVIRONMENTAL POSITIONS ...... 145 APPENDIX 3: RESTRICTED-USE PESTICIDES IN THE PEOPLE’S REPUBLIC OF CHINA 149 i EXECUTIVE SUMMARY A. Introduction 1. This initial environmental examination (IEE) has been prepared for the proposed Gansu Internet-Plus Agriculture Development Project (the project). The project supports the development of internet-plus agriculture in a range of feature crops such as potatoes, liquorice, forage mulberry