Initial Environmental Examination June 2017 PRC: Integrated Development of Key Townships in Central Liaoning Project-Shenbei Ecology Center Town Development Subproject Prepared by Shenbei New District International Institutions Loaned PMO for the Asian Development Bank. Initial Environmental Examination People‘s Republic of China: Shenbei Ecology Center town development project under Integrated Development of Key Townships in Central Liaoning Project (2901-PRC) Prepared by the Shenbei New District International Financial Institutions Loaned PMO Liaoning Provincial Environmental Planning Institute Limited Revised in June 2017 ABBREVIATIONS AADT - Annual Average Daily Traffic ADB - Asian Development Bank AIDS - Acquired Immunity Deficiency Syndrome AP - Affected Person ASL - Above sea level CSCs - Construction Supervision Companies DMF - Design and Monitoring Framework EHS - Environmental Health and Safety CEIA - Consolidated Environmental Impact Assessment EIA - Environmental Impact Assessment EMO - External monitoring organization EMP - Environmental Management Plan EPB - Environmental Protection Bureau FSR - Feasibility Study Report FYP - Five-Year Plan GHG - Greenhouse Gas GRM - Grievance Redress Mechanism HH - Household HIVS - Human Immunodeficiency Virus IA - Implementing Agency IEE - Initial Environmental Examination IPCC - Intergovernmental Panel on Climate Change MEP - Ministry of Environmental Protection NDRC - National Development and Reform Commission O&M - Operation and Maintenance PAH - Project affected households PAP - Project affected persons PMO - Project Management Office PPMS - Project Performance Management System PRC - People's Republic of China RP - Resettlement Plan TGR - Traffic Growth Rate USD - United States Dollar CURRENCY EQUIVALENTS Currency Unit– Chinese Yuan (CNY) CNY1= $.1515 $1= CNY6.6 WEIGHTS AND MEASURES Km2– square kilometer m2– square meter M3/day– cubic meter per day mu– Chinese unit of area (15 mu = 1 hectare) NOTES (i) The fiscal year (FY) of the Government of the People‘s Republic of China ends on 31 December. (ii) In this report, "$" 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 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. TABLE OF CONTENTS I INTRODUCTION ...........................................................................................................................21 A. Overview ........................................................................................................................... 21 B. Laws, Regulations, Guidelines, and Standards ................................................................ 21 C. Assessment Areas and Sensitive Receptors .................................................................... 43 D. Assessment Period ....................................................................................................... 1413 E. Evaluation Standards .................................................................................................... 1413 II DESCRIPTION OF PROJECT ..................................................................................................1918 A. Necessity of Project Construction ................................................................................. 1918 B. Master plan of the City .................................................................................................. 1918 C. Scope of Urban Roads and Wastewater Treatment Plant ............................................ 2221 D. Capacity Building and Institutional Strengthening ......................................................... 4241 III DESCRIPTION OF ENVIRONMENT.........................................................................................4544 A. Description Of Natural Environment ............................................................................. 4544 B. Environment Quality ...................................................................................................... 4746 IV ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ..............................................6665 A. Positive Impacts and Environmental Benefits ............................................................... 6665 B. Impacts Associated with Project Location, Planning, and Design ................................ 6665 C. Environmental Management Measures during the Pre-Construction Phase................ 6766 D. Impacts and Mitigation Measures during the Construction Phase ............................... 6766 E. Impacts and Mitigation Measures during the Operational Phase ................................. 7069 F. Alternative Analysis ....................................................................................................... 7170 V CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE ..............................7372 A. Legislative Framework for Public Consultation ............................................................. 7372 B. Information Disclosure .................................................................................................. 7372 C. Public Consultation ....................................................................................................... 7574 D. Results of Public Consultation ...................................................................................... 7877 E. Grievance Redress Mechanism .................................................................................... 7978 VI ENVIRONMENT MANAGEMENT PLAN ..................................................................................8180 A. Introduction ................................................................................................................... 8180 B. EMP Implementation Responsibilities ........................................................................... 8180 C. Role of the Loan Implementation Environmental Consultants ...................................... 8382 D. Role of External Environmental Expert ......................................................................... 8483 E. Summary of Potential Impacts and Mitigation Measures .............................................. 8483 F. Environmental Monitoring ............................................................................................. 9695 VII CONCLUSIONS AND RECOMMENDATIONS .................................................................... 109108 A. Environmental Assessment Findings ........................................................................ 109108 B. Environmental Health and Safety ............................................................................. 109108 C. Resettlement and Economic Displacement .............................................................. 110109 D. Climate Change ........................................................................................................ 110109 E. Risks and Assurances ............................................................................................... 110109 F. Follow-Up Monitoring and Environmental Management Requirements .................... 111110 G. Conclusion ................................................................................................................. 111110 Appendix 1: Rapid Environment Assessment Form ................................................................ 112111 Appendix 2: Approval of Environment Impact Assessment for Benxi Subproject............... 114113 1 I INTRODUCTION A. Overview 1 In September 2012, ADB approved the Integrated Development of Key Townships in Central Liaoning (the Project) with a loan of $150 million. The Project Agreement and Loan Agreement were signed in January 2013 and the loan became effective in March 2013. The loan has a 26-year term, including a 5-year grace period. The Project includes 4 components, a) wastewater management improvements; b) Fuxin (Sihe town) district heating network; c) environmentally sustainable urban infrastructure development; and d) capacity development and institutional strengthening. 2 The Shenbei Wastewater Management Improvements and Urban Roads Subproject is part of the Project. The Shenbei Subproject originally included the construction and rehabilitation of roads (and associated facilities) in Qingshuitai and Xinlongtai townships, and the construction of a 10,000 m3 per day wastewater treatment plant (WWTP) in Qingshuitai Township. Two contracts, municipal maintenance equipment (SD-E01) and the civil works contract SD-C05, in the original component, have been kept, and some of the civil works initially to be funded under the Subproject in Xinglongtai and Qingshuitai townships have been completed already with local funds. To utilize the remaining ADB loan originally allocated, the IA requests ADB to use the loan allocation to rehabilitate roads in Xinchengzi town and expand this town’s wastewater treatment capacity by 25,000 m3 per day by expanding the existing WWTP with improvement of the sewage collection system. The total investment of the new Subproject is CNY265 million, including the remaining ADB loans