Environmental Monitoring Report Project Number: 42383-023 August 2018 PRC: Shanxi Small Cities and Towns Development Demonstration Sector Project – Environmental Monitoring Report Prepared by the Halcrow China Ltd. for the Shanxi Small Cities and Towns Demonstrative Project Management Office for the People's Republic of China and the Asian Development Bank This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, 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. CURRENCY EQUIVALENTS (as of 30 June 2018) Currency Unit – yuan (CNY) CNY1.00 = $ 0.1515 $1.00 = CNY 6.6012 ABBREVIATIONS ADB – Asian Development Bank BOD5 – 5-day biochemical oxygen demand ClO2 – chlorine dioxide CO2 – carbon dioxide CODCr – chemical oxygen demand determined through the dichromate reflux method CSC – construction supervision company DMF – design and monitoring framework EA – executing agency EAMF – environmental assessment and management framework EIA – environmental impact assessment EMC – environmental management consultant EMP – environmental management plan EPB – environmental protection bureau FSR – feasibility study report GDP – gross domestic product GHG – greenhouse gas HDPE – high-density polyethylene IA – implementing agency LDI – local design institute MSW – municipal solid waste NH3-N – ammonia nitrogen NOx – nitrogen oxides O&M – operation and maintenance pH – a unit of acidity PM10 – particulate matter ≤10 micrometers in diameter PMO – project management office PPTA – project preparatory technical assistance PRC – People’s Republic of China RP – resettlement plan SEIA – summary environmental impact assessment SO2 – sulfur dioxide SPG – Shanxi provincial government SS – suspended solids TN – total nitrogen TP – total phosphorus TSP – total suspended particulates UNESCO – United Nations Educational, Scientific and Cultural Organization WTP – water treatment plant WWTP – wastewater treatment plant WEIGHTS AND MEASURES dB(A) – decibel (weighted average) ha – hectare kg/d – kilogram per day km – kilometer km2 – square kilometer m – meter m2 – square meter m3 – cubic meter m3/d – cubic meter per day m3/s – cubic meter per second mg/m3 – milligram per cubic meter mm – millimeter NOTE In this report, "$" refers to US dollars. Shanxi Small Cities and Towns Development Demonstration Sector Project The 5th Environmental Monitoring Report CONTENT A PROJECT OBJECTIVES AND BASIC INFORMATION .................................................... 1 B PROJECT PROFILE ......................................................................................................... 1 C PROJECT IMPLEMENTATION PROGRESS .................................................................... 9 D EMP IMPLEMENTATION PROGRESS ............................................................................ 11 D.1 Institutional Responsibilities for Environmental Management .................................. 11 D.2 Compliance With Environment Related Project Covenants......................................17 D.3 Implementation Situations of the Mitigation Measures .............................................23 D.4 Monitoring Results ...................................................................................................36 D.4.1 External Monitoring ..............................................................................................36 D.4.2 Internal Monitoring ...............................................................................................61 D.5 Training Records and Public Information Consultation .............................................62 E CONCLUSION AND RECOMMENDATIONS ...................................................................69 E.1 Conclusion .............................................................................................................69 E.2 Recommendations .................................................................................................70 F PICTURES .......................................................................................................................70 APPENDIX SCANNED COPIES OF ORIGINAL FIELD SAMPLING AND LAB TESTING REPORTS ................................................................................................................................70 Shanxi Small Cities and Towns Development Demonstration Sector Project The 5th Environmental Monitoring Report A PROJECT OBJECTIVES AND BASIC INFORMATION 1. The environment monitoring report is prepared by Halcrow China Ltd. for the ADB-financed Shanxi Small Cities and Towns Development Demonstration Sector Project (referred to as the Project). It is the fifth environment monitoring report (EMR) of this Project, covering the environment protection status of all subprojects during 1 October 2017-31 August 2018. 2. The report described the project implementation progress, establishment of organizations relevant to the environment management plan, supervision and monitoring, environment monitoring results, project readiness assessment, training and consulting activities, and assessment of the implementation situation of the environment impact mitigation measures conducted by the contractors in the project sites and their surrounding areas located in the cities affected by the project. B PROJECT PROFILE 3. Impact. The impact of the Project is improved environmental quality and increased employment generation in small cities and towns in Shanxi Province. 4. Outcome. The outcome of the Project is improved urban infrastructure and municipal services in about seven small cities and towns in the province. 5. ADB approved Loan 2606-PRC and Grant 0191-PRC on 18 December 2009. The Loan and Project Agreements were signed on 27 April 2010 and the Grant Agreement on 13 July 2010. The Loan, Project, and Grant Agreements came into force and effect on 27 July 2010. The loan closing date was 30 June 2016, and the grant closing date was 31 December 2013. So far, the grant has been closed. The loan closing date was extended by 1.5 years to 31 December 2017. The project investment cost at appraisal is estimated at $224.7 millionCNY 1572.9 million, exchange rate of CNY7.0 to USD 1.0. About 45% of the project cost ($100 million) is under the ADB loan, and the other 55% ($124.7million) is financed by the local county government counterpart fund. The total cost also includes the physical and price contingencies, interests, and other charges during implementation. Table 1 Project Data Sheet Project Name Shanxi Small Cities and Towns Development Demonstration Sector Loan Project Loan Number 2606-PRC Loan Amount $100 million Borrower People’s Republic of China Executive Agency Shanxi Provincial Government Classification Targeting classification: Targeted intervention (Millennium Development Goal) Sector (subsectors): Multi-sector (Transport and communication, water supply and sanitation) Themes (subthemes): Inclusive social development (human development),sustainable economic growth (fostering physical infrastructure development), environmental sustainability (urban environmental improvement) 1 Shanxi Small Cities and Towns Development Demonstration Sector Project The 5th Environmental Monitoring Report Climate change: Climate change adaptation. Location impact: Rural (high impact), urban (high impact), national (medium impact) Environment Category A. Assessment A summary of the environmental impact assessment was circulated to the Asian Development Bank Board of Directors and uploaded to the ADB website in Oct 2008. Involuntary Category A Resettlement Indigenous People Category A Assessment Utilization Period Originally from 27 July 2010 Until 30 June 2016 (Loan extension was agreed to 30 June 2018, more details see para.12 below) Estimated Project Originally 30 June 2016 Completion Date (Loan extension was agreed to 30 June 2018, more details see para.12 below) Table 2 List of Environmental Documents Disclosed on ADB Website (as of August 2018) Title Document Type Document Date Shanxi Small Cities and Towns Development Environmental Aug 2018 Demonstration Sector Project: Environmental Monitoring Reports Monitoring Report (October 2017- August 2018) Shanxi Small Cities and Towns Development Environmental Sep 2017 Demonstration Sector Project: Environmental Monitoring Reports Monitoring Report (July 2016-September 2017) Shanxi Small Cities and Towns Development Environmental Nov 2016 Demonstration Sector Project: Environmental Monitoring Reports Monitoring Report (January-June 2016) Shanxi Small Cities and Towns Development Environmental Mar 2016 Demonstration Sector Project: Environmental Monitoring Reports Monitoring Report (January-December 2015) Shanxi Small Cities and Towns Development Initial Apr 2015 Demonstration Sector Project: Yicheng Water Environmental Supply Improvement Component Initial Examination Environmental Examination Shanxi Small Cities And Towns Development Initial Apr 2015 Demonstration Project: Lingshi Education Facilities Environmental Improvement and Capacity Building Component Examination Initial Environmental Examination Xinghuacun Subproject Environmental Monitoring Environmental Oct 2013 Report (Oct 2013) Monitoring Reports Wutong