Initial Environmental Examination April 2013 Loan Number 2658-PRC People’s Republic of China: Inner Mongolia Autonomous Region Environment Improvement Project (Phase II – Scope Change) Prepared by the Government of Inner Mongolia Autonomous Region 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 (Inter-bank average exchange rate as of November 2012) Currency Unit - Yuan (CNY) CNY 1.00 = US$ 0.1587 USD 1.00 = 6.30 CNY For the purpose of calculations in this report, an exchange rate of $1.00 = 6.30 CNY has been used. ABBREVIATIONS ACM Asbestos-containing materials ADB Asian Development Bank AERMOD American Meteorological Society and the U.S. Environmental Protection Agency Regulatory Mod el AP Affected Person ASL Above sea level CEIA Consolidated Environmental Impact Assessment CFB Circulating Fluidized Bed CHP Combined Heat and Power CNY Chinese Yuan CSC Construction Supervision Company DCS Distributed Control System DI Design Institute EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EMS Environmental Monitoring Station EMU Environmental Management Unit EPB Environmental Protection Bureau ESP Electrostatic precipitators FGD Flue Gas Desulfurization FSR Feasibility Study Report GDP Gross Domestic Product GHG Green House Gas GRM Grievance Redress Mechanism HES Heat Exchange Station HSP Heat Source Plant IA Implementing Agency IMAR Inner Mongolia Autonomous Region i IEE Initial Environmental Examination LAP Land Acquisition Plan MEP Ministry of Environmental Protection NDRC National Development and Reform Committee PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC People’s Republic of China SPS Safeguard Policy Statement, ADB TA Technical Assista nce TOR Terms Of Reference WEIGHTS AND MEASURES BOD 5 Biochemical Oxygen Demand, five days cm Centimeter CO 2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen DOD Dissolved Oxygen Deficit GJ Giga-joule ha Hectare HCI Hydrochloric acid HF Hydrogen fluoride kcal Kilo Calories kg Kilogram km Kilometer kWh Kilo Watt Hours M Meter m/s Meters per Second m³ Cubic Meters mg/l Milligrams per Liter mg/m 3 Milligrams per Cubic Meter mg/Nm 3 Milligrams per Standard Cubic Meter MW Megawatt NO 2 Nitrogen Dioxide NO x Nitrogen Oxides oC Degrees Celsius pH A measure of the acidity or alkalinity of a solution PM 10 Particulate Matter smaller than 10 micrometers SO 2 Sulfur Dioxide TN Total Nitrogen TSP Total Suspended Particulates ii TABLE OF CONTENTS Map 1 EXECUTIVE SUMMARY ............................................................................................................................. 1 A. THE PROJECT ............................................................................................................................................... 1 B. LEGAL FRAMEWORK OF ENVIRONMENTAL IMPACT ASSESSMENT ............................................................................ 1 C. DESCRIPTION OF THE PROJECT ......................................................................................................................... 1 D. DESCRIPTION OF THE ENVIRONMENT ................................................................................................................ 2 E. ANTICIPATED IMPACTS AND MITIGATION MEASURES ........................................................................................... 2 F. ALTERNATIVE ANALYSIS ........................................................................................................................... 4 G. INFORMATION DISCLOSURE AND PUBLIC CONSULTATIONS .................................................................................... 4 H. GRIEVANCE REDRESS MECHANISM ................................................................................................................... 5 I. ENVIRONMENTAL MANAGEMENT PLAN ............................................................................................................ 5 J. CONCLUSIONS .......................................................................................................................................... 6 I. INTRODUCTION ..................................................................................................................................... 7 A. THE PROJECT AND ITS SCOPE CHANGE .............................................................................................................. 7 B. REPORT PURPOSE ......................................................................................................................................... 7 C. APPROACH TO IEE PREPARATION ..................................................................................................................... 7 D. STRUCTURE OF IEE ........................................................................................................................................ 8 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ........................................................................... 10 A. LEGAL FRAMEWORK OF THE PRC ................................................................................................................... 10 B. APPLICABLE ADB POLICIES , REGULATIONS AND REQUIREMENTS .......................................................................... 12 C. INTERNATIONAL AGREEMENTS ....................................................................................................................... 12 D. OTHER RELEVANT GUIDELINES ...................................................................................................................... 13 E. STANDARDS APPLICABLE TO URBAN DISTRICT HEATING SECTOR ........................................................................... 13 F. PRC’ S ENVIRONMENTAL IMPACT ASSESSMENT AND ITS ADMINISTRATIVE FRAMEWORK ........................................... 14 G. EIA REPORT APPROVAL STATUS .................................................................................................................... 15 III. DESCRIPTION OF THE PROJECT ............................................................................................................ 16 A. JUSTIFICATION AND RATIONALE ..................................................................................................................... 16 B. THE PROJECT ............................................................................................................................................. 17 C. KEY CONTENT AND TECHNICAL PARAMETERS OF EACH SUBPROJECT ..................................................................... 17 D. DUE DILIGENCE OF EXISTING FACILITIES ........................................................................................................... 33 IV. DESCRIPTION OF THE ENVIRONMENT .............................................................................................. 36 A. XING ’AN LEAGUE IN IMAR ........................................................................................................................... 36 B. CHIFENG CITY ............................................................................................................................................. 37 C. AERSHAN CITY ............................................................................................................................................ 37 D. TUQUAN COUNTY ....................................................................................................................................... 41 E. WENGNIUTE BANNER .................................................................................................................................. 46 V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ......................................................................... 51 A. EXPECTED POSITIVE IMPACT .......................................................................................................................... 51 B. POTENTIAL IMPACTS .................................................................................................................................... 52 C. POTENTIAL IMPACTS BEFORE CONSTRUCTION ................................................................................................... 52 D. IMPACTS AND MITIGATION MEASURES DURING CONSTRUCTION .......................................................................... 53 E. IMPACTS AND MITIGATION MEASURES DURING OPERATION ................................................................................ 60 F. IMPACTS FROM SMALL BOILER DEMOLITION AND MITIGATION MEASURES ............................................................ 73 G. UNANTICIPATED IMPACTS DURING CONSTRUCTION AND OPERATION .................................................................... 74 VI. ALTERNATIVE ANALYSIS .................................................................................................................. 75 iii A. WITHOUT -PROJECT ALTERNATIVE .................................................................................................................. 75 B. HEAT SOURCE ALTERNATIVES ........................................................................................................................ 75 C. ALTERNATIVE FUELS ...................................................................................................................................