Inner Mongolia Sustainable Cross-Border Development ...

Draft Initial Environmental Examination

September 2020

People’s Republic of China: Inner Mongolia Sustainable Cross-Border Development Investment Program

Prepared by the Inner Mongolia Autonomous Regional Government for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 25 August 2020)

Currency unit – yuan (CNY)

CNY1.00 = $6.9196 $1.00 = €0.8483 €1.00 = $1.1788

ABBREVIATIONS

ADB – Asian Development Bank

AP – Affected person

AQG – Air quality guideline

BCP – Border crossing point BOD5 – 5-day biochemical oxygen demand

CAREC – Central Asian Regional Economic Cooperation

CNY – Chinese Yuan

COD – Chemical oxygen demand

CRVA – Climate risk and vulnerability assessment

CSC – Construction Supervision Company

DRC – Development and Reform Commission

DO – Dissolved oxygen

EA – Executing agency

EARF – Environmental Assessment Review Framework ECZ – Economic cooperation zone EHS – Environment, health and safety

EIA – Environmental impact assessment

EIR – Environmental impact report

EIRF – Environmental impact registration form

EIT – Environmental impact table

EMP – Environmental management plan

EMR – Environmental monitoring report

EMA – Environmental Monitoring Agency

EMU – Environmental Monitoring Unit

EEB – Ecology and Environment Bureau

EED – Ecology and Environment Department

ESE – Environmental supervision engineer

ESMS – Environmental and social management system arrangement

FIL – Financial intermediation loan

FI – Financial intermediary

FSR – Feasibility study report

GDP – Gross domestic product

GRM – Grievance redress mechanism

IMAR – Inner Mongolia Autonomous Region

IA – Implementing agency

IDOF – Inner Mongolia Autonomous Region Department of Finance

IDRC – Inner Mongolia Autonomous Region Development and Reform Commission

IEE – initial environmental examination

IMARG – Inner Mongolia Autonomous Region Government

IPMO – Inner Mongolia Autonomous Region project management office

LAR – Land acquisition and resettlement

PIC-ES – Project implementation consultant - environment specialist

LPMO – Local project management office

MEE – Ministry of Ecology and Environment

MEP – Ministry of Environmental Protection

MFF – multi-tranche financing facility

MOF – Ministry of Finance

MPMO – municipal project management office

MSW – Municipal solid waste

MU – Chinese land unit (1 ha = 15 mu)

N – Nitrogen

NH3-N – Ammonia nitrogen

NO2 – Nitrogen dioxide

NOx – Nitrogen oxides

O&M – Operation and maintenance

P – Phosphorus

PAM – Polyacrylamide

PCR – Project completion report

pH – A measure of acidity and alkalinity

PIC – project implementation consultant

PIE – Project implementation entity

PIU – Project implementing unit

PLG – Project leading group

PM2.5 – Particulate matter with diameter ≤ 2.5 micrometers

PM10 – Particulate matter with diameter ≤ 10 micrometers

PMO – Project management office

PPE – Personal protective equipment

PPMS – project performance management system

PRC – People’s Republic of China

RCI – Regional cooperation and integration

REA – Rapid environmental assessment

RP – Resettlement plan

SME – Small and medium-sized enterprise

SO2 – Sulfur dioxide

SPS – Safeguard policy statement

SS – Suspended solid

TOR – Terms of reference

TP – Total phosphorus

TRTA – Project Transaction Technical Assistance TSP – Total suspended particulate

VOC – Volatile organic compounds

WBG – World Bank Group

WHO – World Health Organization

WWTP – Wastewater treatment plant

WEIGHTS AND MEASURES

As – Arsenic Cd – Cadmium cm – Centimeter CO2 – Carbon Dioxide Cl- Chloride dB(A) – A-weighted sound pressure level in decibels

DO – Dissolved Oxygen F- – Fluoride kg – Kilogram km – Kilometer kWh – Kilowatt Hour Leq – Equivalent Continuous Noise Level m – Meter m/s – Meters per Second m2 – Square Meters m³ – Cubic Meters mg/l – Milligrams per Liter mg/m3 – Milligrams per Cubic Meter µg/m3 – Micrograms per Cubic Meter NOx – Nitrogen Oxides oC – Degrees Celsius O3 – Ozone pH – A measure of the acidity or alkalinity of a solution PM – Particulate Matter PM10 – Particulate Matter smaller than 10 micrometers PM2.5 – Particulate Matter smaller than 2.5 micrometers SO2 – Sulfur Dioxide TN – Total Nitrogen TSP – Total Suspended Particulate TP – Total Phosphorus

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.

TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................................ 1 A. Introduction ...................................................................................................... 1

B. Project Description ........................................................................................... 1

C. Potential Environmental Impacts and Mitigation Measures ............................... 4

D. Environmental Management Plan ................................................................... 10

E. Information Disclosure and Public Consultation .............................................. 11

F. Grievance Redress Mechanism...................................................................... 12

G. Alternative Analysis ........................................................................................ 12

H. Project Risks and Key Assurances ................................................................. 13

I. Overall Conclusion ......................................................................................... 13 I. INTRODUCTION............................................................................................................... 14 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK .............................................. 15

A. Legal Framework of the PRC ......................................................................... 15

B. Applicable ADB Polices and World Bank’s EHS Guidelines ........................... 18

C. International Agreements ............................................................................... 19

D. Comparison between the PRC and International Standards ........................... 20

E. Assessment Standards for Project Construction and Operation ..................... 22

F. Project Environmental Administrative Framework........................................... 28

G. Relevant Environmental Laws and Standards of Mongolia ............................. 29 III. DESCRIPTION OF THE PROJECT ................................................................................. 36

A. Introduction .................................................................................................... 36

B. Project Impact and Outcome .......................................................................... 36

C. Project Scope ................................................................................................. 37

D. Due Diligence for Associated and Existing Facilities....................................... 47 IV. DESCRIPTION OF THE ENVIRONMENT ....................................................................... 53

A. Location and Physical Setting ........................................................................ 53

B. Environmental Quality .................................................................................... 64

C. ECOLOGICAL RESOURCES AND ENVIRONMENT ..................................... 74

D. SOCIO- ECONOMIC CONDITIONS ............................................................... 76

E. PHYSICAL CULTURAL RESOURCES (PCRs) .............................................. 77 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ............ 79

A. Project Area of Influence and Sensitive Receptors ......................................... 79

B. Impacts and mitigation measures during Pre-construction Phase ................... 86

C. Construction Phase - Impact and Mitigation Measures ................................... 88

D. Operational Phase - Impact and Mitigation Measures .................................. 101

E. Cumulative, Indirect and Induce Impacts ...................................................... 116 VI. ANALYSIS OF ALTERNATIVES .................................................................................... 117

A. No Project Alternative ................................................................................... 117

B. Alternatives Considered ............................................................................... 118

C. Overall Alternative Analysis .......................................................................... 119 VII. INFORMATION DISCLOSURE AND CONSULTATIONS.............................................. 120

A. PRC and ADB Requirements for Information Disclosure and Public Consultation

120

vi

B. Information Disclosure .................................................................................. 121

C. Questionnaire Survey ................................................................................... 125

D. Future Plans for Public Participation ............................................................. 131 VIII. GRIEVANCE REDRESS MECHANISM ......................................................................... 133

A. Current Practice ........................................................................................... 133

B. Proposed Grievance Redress Mechanism ................................................... 134

C. Types of Grievances Expected ..................................................................... 135

D. GRM Steps and Timeframe .......................................................................... 135

E. Disclosure of the Grievance Process ............................................................ 136 IX. ENVIRONMENTAL MANAGEMENT PLAN ................................................................... 137

A. Objectives .................................................................................................... 137

B. Institutional Arrangements and Responsibilities for EMP Implementation ..... 137

C. Inspection, Monitoring and Reporting ........................................................... 139 X. CONCLUSION AND RECOMMENDATIONS ................................................................. 140

A. Risks and Assurances .................................................................................. 140

B. Overall Conclusion ....................................................................................... 140 Appendix 1 Environmental Management Plan (EMP) ................................................................... 1 CONTENTS .................................................................................................................................... 2

A. Introduction ...................................................................................................... 3

B. Institutional Arrangements and Responsibilities for EMP Implementation ......... 3

C. Summary of Potential Impacts and Mitigation Measures .................................. 9

D. Environmental Monitoring, Inspection and Reporting ...................................... 21

E. Institutional Capacity Building and Training .................................................... 26

F. Consultation, Participation and Information Disclosure ................................... 28

G. Grievance Redress Mechanism...................................................................... 29

H. Cost Estimates ............................................................................................... 32

I. Mechanisms for Feedback and Adjustment .................................................... 33

J. Environmental Contract Clauses for Inclusion into Tender Documents and Civil

Works Contracts ........................................................................................................ 33

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EXECUTIVE SUMMARY

A. Introduction

1 This is an initial environmental examination (IEE) prepared for Tranche 1 of the proposed Multitranche Financing Facility (the MFF) for Inners Mongolia Sustainable Cross-Border Development Investment Program (Investment Program) in Inner Mongolia Autonomous Region (IMAR) of the People’s Republic of China (PRC). The IEE was prepared in accordance with Asian Development Bank’s (ADB’s) Safeguard Policy Statement (SPS, 2009).

2 The Investment Program is designed to support the participation of IMAR in regional cooperation and integration (RCI), especially the Central Asia Regional Economic Cooperation (CAREC) Program, with a focus on economic corridor development. The geographical areas to be covered by the whole Investment Program include: (1) Erenhot Municipality; (2) Darhan Muminggan United Banner (Damaoqi County) and Qingshan District in Baotou Municipality, (3) Arxan City in Xing’an League (Xing’an Municipality); (4) Alxa Left Banner (Azuoqi County) in Alxa League (Alxa Municipality); (5) Bayannur Municipality; and (6) small and medium-sized enterprises (SMEs)1 located in IMAR through financial intermediaries (FIs).

3 This IEE assessed the investment loan subprojects under Tranche 1, which are geographically located in two municipalities of:

i. Erenhot Municipality; and

ii. Baotou Municipality (with project components in Mandula Port, Damaoqi County and Qingshan District of Baotou Municipality).

B. Project Description

4 Tranche 1 of the Investment Program covers the following subprojects:

⚫ Subproject 1: Inner Mongolia Sustainable Cross-Border Development Investment Program in Erenhot Municipality.

⚫ Subproject 2: Inner Mongolia Sustainable Cross-Border Development Investment Program in Mandula Port of Baotou Municipality

⚫ Subproject 3: Establishment of Quarantine Station in Mandula Port, Expansion of Stud Sheep Breeding Bases and Sheep Industry Comprehensive Development in Baotou Municipality.

⚫ Subproject 4: SMEs in Cross Border Businesses Expansion in IMAR.

⚫ Subproject 5: Project Management and Institutional Capacity Strengthening

5 More details of project information on each subproject are provided as follows:

Subproject 1: Inner Mongolia Sustainable Cross-Border Development Investment Program in Erenhot.

6 Erenhot is a county-level city of the Xilin Gol League in Inner Mongolia Autonomous Region (IMAR). It is located in the Gobi Desert along the PRC-Mongolian border, across from the Mongolian town of Zamyn-Uud. The Erenhot highway towards the port at the border has

1 The classification of SMEs is defined in Statistical Methods on Classification of Micro, Small, Medium, and Large-Sized Enterprises, which was enclosed by National Bureau of Statistics, PRC on 28 December 2017.

https://en.wikipedia.org/wiki/Mongolia

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been operated since 1992, but it has been used for both passenger and goods transport. The infrastructure and inspection conditions of the port area have been outdated since then. To modernize the Erenhot highway port, the IMAR government carried out expansion works on the highway in July 2000, which greatly improved the efficiency of custom clearance in the port. An agreement was signed on 4 June 2019 between the PRC and Mongolia for constructing the Erenhot-Zamyn Uud Economic Cooperation Zone (ECZ) near the border. 2 Based on the agreement, both sides will further (i) promote the economic cooperations between the PRC and Mongolia; (ii) facilitate the trade, investment and personnel exchanges; (iii) push ahead industrial cooperation between the two countries; (iv) accelerate the regional development of border areas of the two countries; and (v) enhance the economic and social benefits to the border areas and people of the two countries.

7 The purpose of Subproject 1 is to establish an inspection area in the PRC-Mongolian Erenhot-Zamyn Uud ECZ, and improve the living conditions of residents in local port areas and in towns on the Mongolian side of the border. This subproject includes the following five components:

i. Component 1: Inspection Area Construction for the PRC-Mongolian Erenhot-Zamyn Uud ECZ, including (1) construction of the inspection area; and (2) establishment of a smart port management platform; (3) construction of a cross border economic cooperation center; (4) establishment of a fencing, alarming and monitoring system in the ECZ; and (5) construction of a heating pipeline network using clean energy in the ECZ;

ii. Component 2: Ecological Restoration for the PRC-Mongolian Erenhot-Zamyn Uud ECZ, including (1) construction of a ecological protection greenbelt along the central axis, which includes reclaimed water storage, irrigation facilities and landscape lighting; and (2) construction of a ecological protection greenbelt along roadsides, including reclaimed water storage and irrigation facilities;

iii. Component 3: Waste Collection and Transfer Stations, and Sanitation Intelligent Cloud Platform for the ECZ, including (1) construction of one waste collection and transfer station; (2) procurement of supporting facilities/equipment; and (3) establishment of a sanitation intelligent cloud platform;

iv. Component 4: Upgrading Medical Equipment for the Erenhot International Traditional Chinese and Mongolia Medicine Hospital (PRC-Mongolia International Hospital in Erenhot), including the procurement of 50 sets of medical equipment and facilities;

v. Component 5: Institutional capacity building and strengthening.

8 The Erenhot Municipal Government (EMG) is the implementing agency for this subproject. The Erenhot municipal project management office (EPMO) has been established under the Erenhot DRC to carry out the overall coordination and supervision of subproject preparation and implementation at its level. Erenhot Yixin Urban & Rural Development and Construction and Asset Management Co., Ltd (Yixin) has been assigned to act as the PIE for Subproject 1. A project implementing unit (PIU) has been established inside the PIE to carry out the daily implementation of this subproject.

Subproject 2: Inner Mongolia Sustainable Cross-Border Development Investment Program in Mandula Port.

9 Located in Damaoqi Banner (County) in Baotou Municipality, the Mandula Highway Port

2 http://english.mofcom.gov.cn/article/newsrelease/significantnews/201906/20190602870682.shtml.

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has been operational since 1992. As the only inland port that can be opened all year round in the Midwest IMAR, the Mandula Port plays an important role in the country’s Belt and Road Initiative, especially in trade with Mongolia and Russia.

10 The purpose of this subproject is to upgrade the Mandula Port International Highway Logistics Park, improve the connectivity in border areas and enhance the service capacity for trade promotion. This subproject includes the following four components:

i. Component 1: Expansion of port freight passage roads;

ii. Component 2: Construction of a service area in the International Highway Logistic Park;

iii. Component 3: Construction of a customs supervision center in the International Highway Logistic Park; and

iv. Component 4: Institutional capacity building and strengthening.

11 The Baotou Municipal Government (BMG) is the implementing agency (IA) for this subproject. The Baotou municipal project management office (BPMO) is yet to be established under the Baotou DRC to carry out the overall coordination and supervision of subproject preparation and implementation at its level. Damaoqi Pine Boolean Property Service Co., Ltd (Songbuer) has been assigned to act as the PIE for Subproject 2.

Subproject 3: Establishment of Quarantine Station in Mandula Port, Upgrading of Stud Sheep Breeding Bases and Sheep Industry Comprehensive Development

12 Located in Tuyouqi County, Damaoqi County and Guyang County in Baotou, this subproject aims to increase the sheep production capacity by upgrading stud sheep breeding bases and to improve the product quality by adopting the embryo transplantation technology. The subproject will also act as a pilot poverty reduction and income generation project for small-scale herders and low-income farmers. This subproject includes the following seven components:

i. Component 1: Upgrading of stud sheep breeding bases;

ii. Component 2: Construction of a quarantine station in the Mandula Port;

iii. Component 3: Upgrading of five sheep farming bases;

iv. Component 4: Establishment of a product tracing and management system;

v. Component 5: Establishment of a Poverty Alleviation Program;

vi. Component 6: Construction of a sheep slaughtering, processing and logistic facility; and

vii. Component 7: Project management and capacity building.

13 The Baotou Municipal Government (BMG) is the implementing agency for this subproject, and Inner Mongolia Xiao Wei Yang Stock Raising Sciences and Technologies Co., Ltd (Xiaoweiyang), a private animal husbandry enterprise registered in Baotou in 2001, will be the PIE to carry out the daily implementation of this subproject. A PIU has been established inside the company to carry out the overall coordination and supervision of subproject preparation and implementation.

Subproject 4: SMEs in Cross Border Businesses Expansion in IMAR

14 Many of the SMEs in the border areas of the PRC and Mongolia are confronted with difficulties in accessing financing, which has been a main constraint for growing and improving

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their businesses. The SME financing component under Tranche 1 of the Investment Program will provide financing to selected SMEs in IMAR, especially in Alxa, Bayannur, Baotou, Erenhot, and Xiang’an municipalities, through financial intermediaries (FIs) by using the financial intermediation loan (FIL) modality. The financing provided is expected to enable the qualified SMEs to gain access to competitively priced, medium to long term loans in order to fund their value addition businesses and increase the profitability of their businesses. The financing will also help increase the productivity of the cities and counties in which the SMEs operate. The first tranche loan for the SME financing is at the amount of €18.20 million (equivalent to $20.00 million).

15 A number of measures have been adopted in designing this subproject to address the financing barriers for SMEs in the border areas. Accordingly, the FIL modality was chosen to (i) allow multiple rollovers of the ADB loan to provide larger investments for SMEs over the loan tenor; (ii) build knowledge and capacity of the IMAR government and domestic financial institutions in risk assessment and management of the SME lending; (iii) reduce transactional complexities and costs by gaining familiarity and experience by both the IPMO and financial intermediaries through the subproject implementation; and (iv) enhance the governance and safeguard compliance for the SME investments beyond the first tranche investment subprojects.

16 The FIs in Tranche 1 are Bank of Inner Mongolia (BOIM) and other FIs to be selected by ADB and the IMARG during the implementation period. The FIL will be used to finance SMEs in cross border trade in the sectors of agribusiness, logistics, manufacturing, and border tourism in IMAR. An ESMS document is prepared for the FIs in accordance with ADB SPS 2009. This ESMS will be maintained and implemented by FIs as part of the overall management system to comply with the relevant PRC laws/regulations and ADB SPS 2009 requirements. The ESMS will be applied to all the subprojects supported by the FIs using (i) the ADB loan proceeds in the initial batch of subprojects; and (ii) the revolving fund established with reflows from the initial batch of subprojects.

Subproject 5: Institutional capacity building and strengthening

17 According to the due diligence and assessment carried out by the TRTA team, the Tranche 1 project has “substantial” risk in financial management due to the lack of familiarity with ADB financial management, disbursement procedures and requirements by the implementing agencies and PIEs. The procurement risk assessment concluded that the Tranche 1 project has a “medium” risk rating due to the lack of familiarity with ADB’s procurement requirements.

18 The institutional capacity assessment also indicates that the implementing agencies and PIEs lack the ADB project experiences and are short in proper staff who are the familiar with the ADB procedures and requirements. Mitigation measures that will be taken to address such risks include, but are not limited to: (1) recruit project implementation consultants (PICs) to facilitate the project implementation; (2) provide extensive training, workshop and seminars to strengthen the project management and institutional capacity; (3) engage a procurement agency with good English skills and proper experiences in World Bank/ADB financed projects; and (4) recruit qualified professional staff in the PIEs to improve human resources capacity, including financial accountant, procurement staff and engineers.

19 Institutional Arrangement. The IPMO will be responsible for implementing all the activities that are related to the project management and capacity building. The IPMO will also carry out the overall coordination and supervision of project preparation and implementation.

C. Potential Environmental Impacts and Mitigation Measures

20 No cultural heritage or archaeological sites are existing within 5 km of the project areas.

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Based on the site visits, the nearest specially protected area to the project sites is the Erenhot Regional Dinosaur Fossil Reserve, which is about 10 km away the Erenhot Subproject location. There will be no impact to the protected area from project construction activities. The subproject sites are located at developed industrial areas and residential areas. Natural flora within the subproject areas is limited and there are no known ecological and/or sensitive resources in or near the subproject sites.

21 There are no documented rare, endangered, or protected flora or fauna species, or critical habitats, in or near the construction sites of the IMAR Tranche 1 subprojects. Affected vegetation and plants comprise widespread species. Most existing vegetation is secondary and planted; and the potential impacts from construction activities are short-term, temporary, small-scale and reversible.

22 As groundwater in the project areas of influence is generally deep, no major impacts on groundwater resources are anticipated during both the construction or operational phases of the roads and auxiliary facilities. No water supply wells/hand pumps are located in the areas of potential impact by the subprojects.

23 The scope of the project works will create some social impacts. To meet the needs for skilled and unskilled workers, the project construction will provide employment opportunities for local people, which can benefit the surrounding communities. Opportunities also arise for material suppliers and small-scale businesses that cater for the new development. The potential social impacts will be managed as follows: (i) local hiring will be given priority to avoid social conflicts; (ii) the project scale is not expected to cause large population influx to the project areas and will have limited impacts on the local municipal services; and (iii) Education of construction workers will be conducted to minimize social disturbance and cultural conflict.

24 The concerns over the community safety of the proposed roads have been thoroughly examined. All roads have separate pedestrian sidewalks. Pedestrian-priority traffic lights, crosswalks (zebra lines) will be established at all intersections. Mitigation measures related to the road operation and traffic safety have been developed and included in the environmental management plan (EMP).

Construction Phase

25 The potential environmental impacts during construction are mainly associated with fugitive dust, construction noise, soil erosion, runoff, solid waste and potential health and safety risks to workers and communities.

26 The severity of these potential impacts was assessed in relation to the baseline environment and sensitive receptors. The results of the IEE indicate that the environmental impacts of construction dust, noise, erosion, local disruption to traffic and communities are short-term and manageable in nature. The construction activities will not impact critical habitats, protected flora or fauna, or physical cultural resources. The construction-related impacts will be addressed by stringent site management and procedural provisions specified in the EMP. Environmental protection clauses will be included in the contracts for civil works to ensure that contractors are aware of and committed to implementing environmental mitigation requirements associated with the works.

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Operational Phase

27 Upon completion of construction works, the proposed project facilities will undergo the operational stage, which will create a demand for consumption of natural resources and municipal waste collection/treatment services, such as the need for water supply, electricity supply, heating, solid waste collection, wastewater treatment, etc. Since the proposed Tranche 1 subprojects of the Investment Program are mainly located in two municipalities (Erenhot and Baotou Municipalities), such associated needs by the Tranche 1 subprojects for energy, water and city services are covered by the two municipalities.

28 The annual consumption of municipal water supply by Subproject 1 is estimated to be 0.192 million m3. Erenhot Municipality currently has the Qiharigetu water plant that provides an annual water supply up to 6.695 million m3 to Erenhot. In 2018, the annual domestic water consumption by Erenhot Municipality was 5.512 million m3, which shows that the Qiharigetu water plant has an extra capacity of 1.183 million m3 per year of water supply to Erenhot , which is sufficient to meet the water demand of 0.192 million m3 per year by the Erenhot subproject.

29 The daily consumption of municipal water supply by Subproject 2 is estimated to be 189 m3. Mandula Port currently has a water supply capacity of 1,500 m3 per day. In 2018, the domestic water consumption by Mandula Port was about 300 m3 per day. This indicates that Mandula Port has an adequate water supply capacity to meet the water demand by Subproject 2 of Tranche 1 in Mandula. The consumption of reclaimed water by Subproject 2 of Tranche 1 is estimated to be 62 m3 per day. Wastewater generated by Subproject 2 will be 133 m3/d and will all be treated into reclaimed water, which indicates that the demand for reclaimed water by Subproject 2 can be met.

30 The source of water supply during operation of the subproject components under Subproject 3 will be from the city water supply pipelines operated by Baotou Municipality. The component 1 and component 3 of Subproject 3 will introduce a new type of sheep, Australian White Sheep, for breeding operation to replace the existing local types of sheep in these sheep breeding bases. Since the new type of Australian White Sheep will not create additional water demand than the existing local sheep in the breeding bases, the proposed Subproject 3 on sheep breeding will not require more water than what is currently consumed. The water demand for sheep breeding in the subproject areas will not change and an additional water supply capacity by Baotou Municipality is not necessary to meet the water supply need of the project.

31 Apart from the increased demand for natural resources, key environmental issues associated with the operation of the project facilities include such issues as vehicle emission, traffic noise, storm-water runoff pollution, wastewater pollution control, traffic safety and the risk of hazardous spills.

32 No major environmental impacts are anticipated during the operation of Subproject 1 and Subproject 2 on urban infrastructure development in Erenhot and Baotou Municipalities. The project buildings and facilities will create certain levels of emission, which can easily be managed by integrating the new buildings with the existing or planned municipal services on water supply, municipal solid waste (MSW) disposal, and wastewater collection, treatment and discharge.

33 The noise level from the project facilities was predicted to meet the national noise limits. Upon completion of the construction works, the project areas will be mostly greened with trees and grasses. They will also be protected with road works such as geogrid, masonry stone retaining walls and concrete drainage ditches. Soil erosion due to operation of the project facilities is anticipated to be minimal. The potential operational impacts are expected to be minimal through appropriate design and implementation of the mitigation measures.

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34 Component 2 on the Ecological Restoration for the PRC-Mongolian Erenhot-Zamyn Uud ECZ component under Subproject 1 involves afforestation and greening for constructing the greenbelts. Only local plant species will be used for planting as specified in the IEE and EMP. A drip irrigation system with smart features of automatic flow control through real-time monitoring of soil water content will be installed in the project. The drip irrigation system uses reclaimed water to promote water resource conservation, allows water to drip slowly to the root zone through a network of valves, pipes, tubing, and emitters to minimize the water loss due to evaporation. The system is one of the most advanced technologies for water saving irrigation. The monitoring and control can also be operated through an APP installed on mobile phones and/or notebook computers.

35 Medical wastes from the Erenhot International Traditional Chinese and Mongolia Medicine Hospital in Subproject 1 will be collected, sorted and stored in special containers at a temporal medical waste storage site. The medical waste will then be collected and transferred by a certificated company and incinerated in the existing Erenhot Medical Waste Incineration Plant. Relevant management and mitigation measures have been specified in the EMP.

36 A new inspection area will be constructed at the PRC-Mongolian Erenhot-Zamyn Uud ECZ, and the International Highway Logistics Park at the Mandula Port will be upgraded to improve the connectivity in border areas and enhance the port service capacity. For the current cross-border trading of animal, plant and food originated products, the PRC inspection and quality control standards are already applied to goods imported and exported. The project will further improve the quality standards through newly constructed port inspection building, facilities, and equipment.

37 There are no surface water bodies (lakes or rivers) near the project sites. There are no endangered, endemic or migratory species near the project sites. Wildlife around the project sites is minimal and there is no evidence of human trafficking. The critical wildlife habitat is located in protected areas that are far (more than 10 km) away from the project areas, and will not be affected by the project;

38 The types of the SMEs to be financed in Tranche 1 of the Investment Program are in the agribusiness, logistics, manufacturing, and border tourism sectors. An ESMS document has been prepared for the SMEs to guide the sub-borrowers and FI banks to meet the requirements of ADB SPS. IEEs prepared for subprojects under the FIs will be disclosed at the ADB website.

39 The component of Expansion of Stud Sheep Breeding Bases and Mutton Industry Comprehensive Development in Subproject 3 involves the sheep breeding. The types of sheep to be bred in the project is Australian White Sheep, not the mountain goat. The company of Xiaoweiyang is the PIE for this component. To ensure the food safety, the Xiaoweiyang company will provide high quality rams and ewes to household farmers for breeding, and then purchase back the lambs (3-6 months old) from the farmers. The lambs will be bred in the five breeding bases and slaughtered/processed in a centralized slaughtering and processing plant before the meat products are released to the market to ensure and secure the food safety by following PRC’s laws and regulations. In the process of sheep slaughtering, humane treatment of animals will be enforced through the application of the electric shocking method to make the animals faint at a step prior to entering the slaughtering house.

40 The component on waste collection and transfer Station construction under Subproject 1 involves the solid waste collection and transfer. The solid waste collected will be transferred to the existing Erenhot landfill for treatment and disposal.

41 Due diligence has been conducted to associated and existing facilities to the project: This includes the Erenhot Wastewater treatment plant (WWTP) as an associated facility, which has a reclaimed water supply capacity of 12,500 m3/d and will provide reclaimed water for

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landscaping irrigation in Components 1 and 2 under Subproject 1 on inspection area construction and greenbelt development in the Erenhot-Zamyn Uud ECZ and border crossing point (BCP). Due diligence has also been carried out on the 5-existing sheep farming bases, which will be upgraded in this project and on the Erenhot International traditional Chinese and Mongolian Medicine Hospital, which will be expanded and upgraded under Tranche 1.

42 The proposed subprojects that are related to cross-border trading at the two Municipalities of Erenhot and Baotou under Tranche 1 have the following characteristics:

⚫ The PRC-Mongolian Erenhot-Zamin Uud ECZ in Erenhot is under planning and will establish an environmental management system (EMS).

⚫ At the Erenhot port, the major imported goods include iron ore, copper ore, pulp, coal, mineral products, timber, beef, and horse/donkey meat. The major exported goods include cement; chemicals; machinery / electrical; metals; petroleum, asphalt, rice; food products, stone / glass; tubes and pipes; and vehicles for goods transport.

⚫ At the Mandula Port, there is no timber trade. The major imported goods include coal and iron ore. The exported goods include construction materials and mechanical equipment.

⚫ The goods imported to PRC from Mongolia are mainly related to raw materials for industrial use and economic development, whereas the goods imported by Mongolia from the PRC are mainly used for domestic consumption by residents.

⚫ PRC currently does not allow importing artiodactyls, hogs, wild boars, poultry from Mongolia effective August 26, 2019.

43 Prohibited and restricted goods by the Government of Mongolia (GOM) for importing and exporting are shown below:

Table 1: Prohibited Goods by the GOM for Importing and Exporting

No. Description of Goods Import/Export

1 Ozone depleting substances without relevant permits or that are prohibited

Import

2 Narcotic drugs, narcotic plants and psychotropic substances without relevant permits

Import, export, transit

3 Tree plantations, shrubbery and seedlings except for research and experiment purposes

Import

4 All kinds of advertisement materials for cigarettes Import, export, transit 5 Advertisement materials for alcoholic beverages Import, export, transit

6 Toxic and hazardous chemicals and substances without relevant permits or prohibited to be used in Mongolia


7 Hazardous waste for the purposes of use, storage and destruction Import 8 All kinds of plastic bags of thickness under 0.025 mm Import 9 Nuclear materials designed for weapons Import, export, transit

10 Nuclear materials, x-ray tools, equipment and technology without proper permit or prohibited by Mongolian laws and legislations


11 Counterfeit medications Import

12 Pharmaceuticals, medical appliances, biologically active substances without proper permit

Import

13 Human blood, blood fractions, tissue and organs for the purposes of making profit

Import, export

14 Publications, books, videos, images and other items advertising pornography

Import, export

15 Ethyl alcohols except for research and testing purposes Import

16 Ferrous and non-ferrous metal (cast iron, iron, steel, copper, brass, aluminum or their alloys) scraps, except recyclable cans of beer or

Export

9

No. Description of Goods Import/Export

other drinks (beverages), ferrous and non-ferrous metals (casted) in ingots or other primary forms, spare parts made of ferrous or non-ferrous metals and lost their feasibility (not feasible for their intended use)

17 Fauna and flora (animals and plants) specified in the I annex of the CITES convention

Import, export

18 Plants without proper permits, roots of perennial plants, root stems, bulbs

Export

19 Rare of endangered species of plants and products thereof except for research purposes or those made into end products

Export

20 25% or more concentrated acetic acid for consumption packaged for retail

Import

21 Products containing asbestos i.e., brake pads containing asbestos Import

22 Equipment for manufacturing foam with substances such as HCFC-22 and HCFC-141b that negatively impact global warming and ozone layers

Import

23 Pyrotechnic equipment Export Source: http://www.customs.gov.mn/en/clearance/prohibited

Table 2: Restricted Goods by the GOM for Importing and Exporting

No. Description of Goods Import/Export License Granting Authority

1 Breeding animals Export

Ministry of Food, Agriculture, Light Industries, Department of Veterinary hospital and Breeding

2 Endangered animals Export Ministry of Environment and Tourism

3 Live animals other than endangered animals raw materials and research samples thereof

Export Ministry of Environment and Tourism

4 Plants, roots of perennial plants, root stems, bulbs


5

Rare of endangered species of plants and products thereof except for research purposes or those made into end products


6 Ozone depleting substances Import National Ozone Authority

7 Alcoholic beverages Import Ministry of Food, Agriculture, Light Industries

8 Cigarettes Import Ministry of Food, Agriculture, Light Industries

9 All types of fuel Import Mineral Resources and Petroleum Authority

10 Veterinary medicaments and medical equipment

Import Department of Veterinary hospital and Breeding

11 Substance used for protecting plants Import Ministry of Food, Agriculture, Light Industries, Ministry of Environment and Tourism

12 Gene enhancing animals from overseas Import Ministry of Food, Agriculture, Light Industries

13 Pharmaceuticals, medical equipment, tools and prosthesis

Import Ministry of Health

14 Biologically active substances Import Ministry of Health

15 Tree plantations, shrubbery and seedlings except for research and experiment purposes

Import Ministry of Environment and Tourism

16 Pyrotechnic equipment Import Ministry of Mining

http://www.customs.gov.mn/en/clearance/prohibited

10

No. Description of Goods Import/Export License Granting Authority

17 Firearms, ammunition, and similar items Import, export General Police Department, Ministry of Legal Affairs

18 Narcotics and psychotropic substances and precursors thereof

Import, export Ministry of Health

19 Disease-causing bacteria, toxins thereof Import, export Ministry of Health 20 Nuclear substances Import, export Nuclear Energy Commission 21 Nuclear minerals, radioactive substances Import, export Nuclear Energy Commission

22 Explosive substances, devices, raw materials

Import, export Ministry of Mining and Heavy Industries

23 Strategic foodstuffs Import, export Ministry of Food, Agriculture, Light Industries

24 Tissues and organs approved for only treatment purposes

Import, export Ministry of Health

25 Items of general and unique historical and cultural value for the promotional and refurbishing purposes

Import, export Ministry of Education, Culture and Science

26 Fauna and flora (animals and plants) specified in the II annex of the CITES convention

Import, export Ministry of Environment and Tourism

27 Electricity Import, export Ministry of Energy

28 Toxic and hazardous chemical substances


Ministry of Environment and Tourism

Source: http://www.customs.gov.mn/en/clearance/prohibited

44 Mitigation measures to reduce all the identified impacts have been developed and included in the EMP. The EMP sets out the procedures and plans to carry out mitigation measures and monitoring procedures during sequential stages of the project from pre-construction stage, construction stage to operation stage.

D. Environmental Management Plan

45 A project environmental management plan (EMP) was developed for Tranche 1, and is included in this IEE report (Appendix 1) to ensure (i) implementation of the identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; (ii) implementation of the monitoring and reporting activities; and (iii) project compliance with the PRC’s relevant environmental laws, standards, and regulations and ADB’s SPS. Organizational responsibilities and budgets are identified for the execution, monitoring and reporting of the EMP.

46 The EMP defines appropriate mitigation measures to minimize the anticipated environmental impacts, and defines institutional responsibilities and mechanisms to monitor and ensure the compliance with PRC’s environmental laws, standards and regulations, and the ADB SPS requirements. The EMP specifies (i) objectives; (ii) major environmental impacts and mitigation measures; (iii) implementing organization and responsibilities; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (v) a feedback and adjustment mechanism; and (vi) the grievance redress mechanism. The EMP will be reviewed and updated after the detailed engineering design, as needed.

47 The IMAR Government (IMARG) is the executive agency (EA) of the Investment Program. The EA has established a project leading group (IPLG) and has setup an IMAR project management office (IPMO) to support the Investment Program implementation. At the prefecture-level, Erenhot Municipal Government (EMG) is the implementing agency (IA) for Subproject 1. Erenhot municipal project management office (EPMO) has been established under the Erenhot DRC to carry out overall coordination and supervision of subproject preparation and implementation in its level. Erenhot Yixin Urban & Rural Development and

http://www.customs.gov.mn/en/clearance/prohibited

11

Construction and Asset Management Co., Ltd (Yixin) has been assigned to act as the PIE. A project implementing unit (PIU) has been established inside the PIE to carry out the daily implementation of this subproject.

48 Baotou Municipal Government (BMG) is the implementing agency for Subproject 2 and Subproject 3. Baotou municipal project management office (BPMO) has been established under the Baotou DRC to carry out overall coordination and supervision of subproject preparation and implementation in its level. Damaoqi Pine Boolean Property Service Co., Ltd (Songbuer) has been assigned to act as the PIE for Subproject 2. The Inner Mongolia Xiao Wei Yang Stock Raising Sciences and Technologies Co., Ltd (Xiaoweiyang), a private animal husbandry enterprise registered in Baotou in 2001, will be the PIE for Subproject 3 with a PIU already established inside the company to carry out overall coordination and supervision of subproject preparation and implementation of Subproject 3.

49 For the FIs in Tranche 1, BOIM and other FIs to be selected during the implementation period, are the PIEs for Subproject 4 of SMEs in Cross Border Businesses Expansion in IMAR. BOIM was selected based on the ADB’s set of eligibility criteria for lending transactions of this nature. The same eligibility criteria will be applied for selecting other FIs during the implementation period. The local project management offices at the two municipalities of Erenhot and Baotou (EPMO and BPMO) will supervise and coordinate overall implementation of the subprojects. The project implementing identities (PIEs) will physically implement the subprojects on behalf of the respective IAs.

E. Information Disclosure and Public Consultation

50 Information disclosure and meaningful public consultation for the project components were conducted in accordance with the PRC Guideline on Public Consultation for Environmental Impact Assessment (EIA) (2006) and ADB SPS requirements.

51 The project information on the subproject in Erenhot Municipality was publicized on August 21, 2019 on the website of the Government of Erenhot Municipality. The project information on the subprojects in Baotou Municipality was first publicized on 25 July 2019 on the website of Xiaoweiyang Company. Project information and environmental impact assessment information were disclosed to the public, especially to potentially affected persons near the construction sites, through online posting. The disclosed information includes the construction project overview, the name and contact information of the construction unit, the name and contact information of the domestic EIA institution undertaking the evaluation work, the working procedures and main work contents of the environmental impact assessment, the domestic EIA approval procedures, the public participation procedures and programs, and preliminary arrangements for work at each stage, major issues for public comment, main approaches for public comments and announcements.

52 Meaningful public consultations were also conducted from June to August of 2019 to seek the views and opinions of affected persons, local communities and departments, and other stakeholders. Questionnaires that contain 31 questions covering environmental issues and opinions towards the project were used to evaluate the public opinions. The project background information and potential environmental impacts were provided to the stakeholders in separate sheets. A total of 251 copies of questionnaires were distributed to the residents in the project areas of Erenhot and Baotou Municipalities, and 251 valid copies of answered questionnaires were collected. The recovery rate was 100%.

53 Of the respondents surveyed, 57% are male and 43% of the respondents are female. With regard to education, 25.1% of the participants are below junior high school, 18.3% are at junior high school, 29.3% are at high school, and 27.1% are at university or above. Regarding occupation, 35.5% of the participants are employees, 42.2% are local farmers, 40% are

12

government staff, and 12.4% belong to other categories.

54 All the respondents (100%) support the project and believe that the project could promote local economic development and have a positive attitude towards it. The public participation questionnaire indicates that the implementation of the project has been recognized and accepted by the public. About 96.0% of the respondents are aware of the project after the public consultation. The top 3 issues concerned about the project are ambient air (45.4%), noise (30.3%) and solid waste (12.7%). Most the respondents (97%) are very satisfied with the proposed environmental mitigation measures.

55 Other findings of the public survey include the following:

✓ 33.5% of the respondents think the project should promote the use of recyclable resources such as reclaimed water, wind power;

✓ 96.0% of the respondents understand the environmental impacts of construction activities (74.9% clearly understand, 12.7% somewhat understand; 8.4%barely understand), while 91.4% of them consider that the dust (39.4%) and noise (35.5%) generated by construction activities is a major environmental concern;

✓ All the respondents understand the environmental impacts of project operation (17.9% somewhat understand; 75.3% clearly understand), while all of them are receptive to the operational impact of the project on ambient air, surface water, groundwater, solid waste, ecological environment, acoustic environment, and health and safety issue;

✓ 98.4% of the respondents are satisfied with the mitigation measures implemented in this project (Very satisfied 84.1%; satisfied, 11.2%; basically satisfied, 3.2%);

✓ All the respondents think the project can improve local economic development and support the project construction.

56 The knowledge about the Project was high, reflecting that the information disclosure and dissemination activities were effective. The Project has strong support from locals in all areas. Concerns and suggestions from stakeholders were considered and incorporated into the project IEE.

F. Grievance Redress Mechanism

57 A project-level grievance redress mechanism (GRM) will be established in compliance with ADB’s SPS (2009) requirements to receive and facilitate resolution of complaints about the project during the construction and operational phases. The GRM includes procedures for receiving grievances, documenting key information, and evaluating and responding to the complainants in a reasonable timeframe to address the environmental, health, and safety concerns associated with the project construction and operation. The proposed project-level GRM, including a time-bound flow chart of procedures, is described in the project EMP.

G. Alternative Analysis

58 During the project preparation, various alternatives to the proposed project components were considered, screened, and analyzed based on technical, economic, social, and environmental perspectives. The primary objective with respect to environmental criteria was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits.

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H. Project Risks and Key Assurances

59 All ADB-funded projects are required to comply with environmental safeguards, which focus on compliance with national laws and the EMP for a specific project. The project implementing agencies had limited previous experience in ADB safeguard procedures. Some potential risks related to the environment safeguard compliance include (i) weak institutional capacity of the implementing agencies and PIEs in their environmental management; (ii) potential delay in the project implementation; (iii) delayed recruitment of EMP implementation monitoring organizations; and (iv) lack of O&M budget for operating environmental treatment facilities.

60 The risks will be mitigated by (i) providing training in sound environmental management under the project; (ii) appointing a full-time environmental officer in the IPMO and one officer respectively in each of the implementing agencies (IAs); (iii) appointing a qualified loan environment implementation consultant in the loan consulting services; (iv) following appropriate project implementation monitoring and mitigation arrangements; (v) defining clear roles and responsibilities of all relevant agencies for the EMP implementation, including contractors and construction supervision companies; (vi) recruiting an independent agency to conduct the external environmental monitoring described in the EMP; and (vii) including clauses in the loan and project agreements to assure adequate O&M budget is allocated for operating environmental treatment facilities.

I. Overall Conclusion

61 This project IEE has: (i) identified potential negative environment impacts and established mitigation measures; (ii) assessed public support from the project beneficiaries and affected people; (iii) established a project GRM; and (iv) prepared a project EMP. It is concluded that the project will not result in significant adverse environmental impacts that are irreversible, diverse, or unprecedented. Any minimal adverse environmental impacts associated with the project will be prevented, mitigated, or minimized through the implementation of the project EMP.

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I. INTRODUCTION

62 The Asian Development Bank (ADB) is processing the proposed Multitranche Financing Facility for Inner Mongolia Sustainable Cross-Border Development Investment Program (Investment Program).

63 The Investment Program is designed to support the participation of the PRC’s IMAR in RCI, especially the CAREC Program, with a focus on economic corridor development. The geographical areas to be covered by the whole Investment Program include: (1) Erenhot Municipality; (2) Darhan Muminggan United Banner (Damaoqi County) and Qingshan District in Baotou Municipality, (3) Arxan City in Xing’an League (Xing’an Municipality); (4) Alxa Left Banner (Azuoqi County) in Alxa League (Alxa Municipality); (5) Bayannur Municipality; and (6) SMEs3 located in IMAR through FIs.





⚫ Subproject 4: SMEs in Cross Border Businesses Expansion in IMAR.

⚫ Subproject 5: Project Management and Institutional Capacity Strengthening

65 This IEE is prepared for the above Tranche 1 investment loan subprojects, which are geographically located in two municipalities of:

i. Erenhot Municipality; and

ii. Baotou Municipality (with project components in Mandula Port, Damaoqi County and Qingshan District of Baotou Municipality).

66 The IEE was prepared in accordance with ADB’s SPS requirements and PRC environmental laws, regulations and standards. It is based on information and data from: (i) domestic EIAs prepared by the local EIA institutes; (ii) feasibility study reports (FSRs) prepared by local design institutes (LDIs); (iii) environmental public consultations conducted during July to August 2019 by the consultants for the project transaction technical assistance (TRTA) in cooperation with the FSR institute, DEIA institutes, and IMAR government.


15

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

67 This IEE report was prepared in accordance with both PRC’s national environmental laws and regulations, and applicable international requirements (i.e., ADB policies and procedures).

68 The relevant PRC national laws and regulations, which the IEE preparation was in compliance with, include the PRC Law on Environmental Impact Assessment (2016), the PRC Management Guidelines on the EIA of Construction Projects (2015), the Technical Guidelines on Environmental Impact Assessment (HJ/T2-93), the Guidelines on Public Participation for EIA by the PRC Ministry of Ecology and Environment (MEE) in March 2006, the Regulation on EIA Public Disclosure by the NDRC in 2012, and the Requirements for Preparation of Environmental Impact Report Summary (2012).

69 The major applicable ADB policies, regulations, requirements, and procedures for environmental management and EIA of the Project are SPS 2009 and the Environmental Safeguards – A Good Practice Sourcebook (2012), which jointly provide the basis for this IEE. The SPS promotes good international practice as reflected in internationally recognized standards.

A. Legal Framework of the PRC

70 The environmental protection and management system in the PRC consists of a well-defined hierarchy of regulatory, administrative and technical institutions. At the top level, the People’s Congress of the PRC has the authority to pass and revise national environmental laws; the MEE under the State Council promulgates national environmental regulations; and the MEE either separately or jointly with the Administration of Quality Supervision, Inspection and Quarantine issues national environmental standards. The primary laws that govern the EIA study of the project are provided in Table II-1, while national administrative regulations and local laws and regulations are provided in Table II-2 and Table II-3.

71 The Environmental Impact Assessment Law of the PRC stipulates that an EIA is required for (i) planning projects for new development areas, and (ii) construction projects. Other two regulations, the Environmental Protection Management Ordinance of the PRC for Construction Projects and Environmental Impact Assessment Ordinance of the PRC for Planning Projects, also govern the way in which project screening and environmental categorization are executed for planning and construction projects.

72 In the PRC, the enforcement of environmental laws and regulations is conducted by environmental protection authorities within each level of the government. The regulatory enforcement and supervision authorities are the MEE at the national level, ecology and environment bureaus (EEBs) at the provincial level, and ecology and environment departments (EEDs) at the municipality level. The authorities are supported by environmental monitoring stations and environmental protection research institutes at different levels of the government.

16

Table II-1: Applicable PRC environmental laws No. Title of the Law Effective Date 1. Environmental Protection Law 1 January 2015 2. Environmental Impact Assessment Law 1 September 2016 3. Water Pollution Prevention and Control Law 1 January 2017 4. Air Pollution Prevention and Control Law 1 January 2016 5. Soil Pollution Prevention and Control Law 1 January 2019 6. Noise Pollution Prevention and Control Law 29 December 2018 7. Solid Waste Pollution Prevention and Control Law 7 November 2016 8. Water and Soil Conservation Law 1 March 2011 9. Forest Law 27 August 2009 10. Land Administration Law 28 August 2004 11. Urban and Rural Planning Law 24 April 2019 12. Water Law 1 September 2016 13. Law on Energy Conservation 1 September 2016 14. Law on the Protection of Cultural Relics 5 November 2017 15. Law on Clean Production Promotion 1 July 2012 16. Law on Circular Economy Promotion 1 January 2018 17. Environmental Protection Tax Law 1 January 2018 18. Law on Animal Epidemic Prevention 24 April 2015

Source: TRTA consultants.

Table II-2: National Administrative Regulations

No. Regulation Year of

effectiveness

1. Regulation on Pollution Control for Protection Zone of Drinking Water Source 2010 2. Regulation on EIA of Plans and Programs 2009

3. Regulation on Environmental Protection Management for Construction Projects

2017

4. Directive on Strengthening Wetland Protection and Management 2004 5. Environmental Protection Supervision Rules for Construction Projects 2017 6. Regulation on Protection of Wild Flora 2017

7. Regulation on Classification of Construction Project Environmental Protection Management (MEP)

2018

8. National Biodiversity Strategy and Action Plan (2011-2030) 2010 9. Requirement for Social Risk Assessment of Large Investment Projects 2012 10. Measures for Public Participation in EIAs (MEE) 2019 11. Regulations for Road Transport of Dangerous Goods 2013

12. Circular of the State Council on Printing and Distributing the Action Plan for Air Pollution Control

2013

13. Circular of the State Council on Printing and Distributing the Action Plan for Water Pollution Control

2015

14. Circular of the State Council on Printing and Distributing the Action Plan for Soil Pollution Control

2016

15. Measures for Pollutant Discharge Permitting Administration (for Trial Implementation)

2018

16. Measures for the Administration of Environmental Impact Assessment of Construction Projects (for Trial Implementation)

2016

17. Measures for the Environmental Emergency Response Management 2015

18. Circular on Issuing the Interim Provisions on the Administration of Pollutant Discharge Permits

2016

19. Implementation Opinions of the Ministry of Environmental Protection on Tightening Interim and Ex-Post Regulation of EIA of Construction Projects

2018

20. Notice on Effective Implementation of the Environmental Impact Assessment System Related to the Pollutant Discharge Permits System

2017

21. Notice on Strengthening the Management of Environmental Impact Assessment with the Core of Environmental Quality Improvement

2016

22. Circular on Issuing the 13th Five-year Plan for the Implementation of Environmental Impact Assessment Reform

2016

17

No. Regulation Year of

effectiveness 23. Industrial Structure Adjustment Guidance Catalogue (2011) (Revised) 2013

24. Regulations on Pollution Prevention and Control for Large-scale Livestock and Poultry Breeding

1 January 2014

25. Requirements for Construction of Designated Quarantine Facilities for Imported Cattle and Sheep (or Goats)

1 January 2016


Table II-3: Local Laws and Regulations No. Law and Regulation Year issued

1. Environmental Protection Regulations of IMAR Dec. 2018 2. Regulation on PRC’s EIA Law in IMAR Sep. 2012 3. Regulations on Water and Soil Conservation Law of the PRC in IMAR 2015 4. Regulations on Air Pollution Prevention and Control in IMAR Mar 2019 5. Regulations on Wild Animals Protection of IMAR Dec. 2018 6. Regulations on environment supervision of Construction Projects in IMAR Sep 2012


73 The implementation of environmental laws is supported by a series of associated management and technical guidelines summarized in Table II-4.

Table II-4: Applicable Environmental Guidelines No. Guideline Effective Year 1. Guideline on EIA Categories of Construction Projects 2018

2. Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects

2009

3. Technical Guidelines for EIA Public Consultation (public comment version)

2011

4. Technical Guidelines for EIA of Construction Project General Programme

HJ2.1-2016

5. Technical Guidelines for EIA Surface Water Environment HJ2.3-2018 6. Technical Guidelines for EIA Groundwater Environment HJ610-2016 7. Technical Guidelines for EIA Regarding Atmospheric Environment HJ2.2-2018 8. Technical Guidelines for Noise Impact Assessment HJ2.4-2009 9. Technical Guideline for EIA Ecological Impact HJ19-2011 10. Technical Guidelines for EIA Soil Environment HJ964-2018 11. Technical Criterion for Ecosystem Status Evaluation HJ192-2015 12. Technical Guidelines for Environmental Risk Assessment on Projects HJ169-2018

13. Technical Specifications on Comprehensive Management of Water and Soil Conservation

GB/T 16453.1~6-2008

14. Technical Guidelines on Water Pollution Control Engineering HJ2015-2012 15. Technical Guidelines for Air Pollution Control Projects HJ2000-2010

16. Technical Guidelines for Solid Waste Treatment & Disposition Engineering

HJ 2035-2013

17. Technical Guidelines for Environmental Noise and Vibration Control Engineering

HJ 2034-2013

18. Identification Standards for Solid Wastes General Rules GB 34330-2017 19. Identification of Major Hazards of Dangerous Chemicals GB18218-2018 20. Identification Standards for Hazardous Wastes GB5085.1~7-2007

21. Technical Specification for Hazardous Wastes Collection, Storage and Transportation

HJ2025-2012

22. Self-monitoring Technology Guidelines for Pollution Sources General Principles

HJ 819-2017


18

74 National environmental quality standards in the PRC are classified into two categories by function, namely, pollutant emission/discharge standards and ambient environmental standards. The relevant main standards applicable to the project are provided in Table II-5.

Table II-5: Summary of Applicable Environmental Standards No. Standard Code

1. Environment Quality Standards for Surface Water GB3838-2002 2. Environment Quality Standards for Noise GB3096-2008 3. Ambient Air Quality Standards GB3095-2012

4. Soil Environment Quality Risk Control Standards for Soil Contamination of Agriculture Land

GB15618-2018

5. Soil Environment Quality Risk Control Standards for Soil Contamination of Development Land

GB36600-2018

6. Integrated Emission Standards of Air Pollutants GB16297-1996 7. Integrated Wastewater Discharge Standards GB8978-2002

8. Standards for Underground Water Quality GB/T14848-2017

9. Standards for Drinking Water Quality GB5749-2006 10. Noise Standards of Construction Site Boundary GB12523-2011 11. Noise Standards for Industrial Enterprises at Site Boundary GB12348-2008

12. Water Quality Standards for Sewage Discharged to Municipal Sewers GB/T 31962-2015

13. Standard for Pollution Control on Hazardous Waste Storage GB 18597-2001

14. Standards for Pollution Control on the Storage and Disposal Site for General Industrial Solid Wastes

GB 18599-2001

15. Emission standards for Odor Pollutants GB 14554-93 16. Discharge Standard of Water Pollutants for Meat Packing Industry GB 13457-1992 17. Discharge standard of pollutants for livestock and poultry breeding GB 18596-2001 18. Technical standard of preventing pollution for livestock and poultry breeding HJ/T 81-2001 19. Standards for Treatment and Harmless Disposal of Sick Animal Carcasses GB 16458


B. Applicable ADB Polices and World Bank’s EHS Guidelines

75 All projects funded by ADB must comply with the ADB’s SPS 2009. The purpose of the SPS is to establish an environmental review process to ensure that projects funded under ADB loans are environmentally sound and to be operated in line with applicable regulatory requirements so that significant environment, health, or safety hazards are not likely to occur. The SPS promotes a good international practice as reflected in internationally recognized standards such as the World Bank (WB) Group’s Environmental, Health and Safety (EHS) Guidelines4. The principles and standards of the EHS Guidelines are adopted by the SPS. Some of the relevant EHS sector guidelines for this project cover general guidelines (including both occupational and community health and safety) and industry sector guideline on waste management facilities. The water, air and noise quality standards in the EHS guidelines provide a reference against project impacts. In general, many PRC standards are the same as, or higher than, the EHS standards.

76 Compared with PRC EIA requirements, the SPS requires a number of additional considerations for the EIA preparation, including: (i) a project-specific GRM; (ii) definition of the project area of influence; (iii) assessment of direct, indirect, induced and cumulative impacts; (iv) due diligence of project associated facilities; (v) protection of physical cultural resources;

4 World Bank Group Environmental, Health, and Safety Guidelines, 30 April 2007, Washington, USA. See: http://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/Sustainability-At-IFC/Policies-Standards/EHS-Guidelines#IndustryEHS

19

(vi) climate change mitigation and adaptation; (vii) occupational and community health and safety requirements (including emergency preparedness and response); (viii) impacts on livelihoods through environmental media; (ix) biodiversity conservation; (x) environmental audit of existing facilities; and (xi) ensuring that the EMP includes an implementation schedule and measurable performance indicators. These requirements are usually weak in PRC EIAs. With the assistance of TRTA consultants, the DEIA has been updated several times in accordance with SPS by the DEIA Institutes to fill in the gaps above and comply with SPS requirements.

77 ADB categorizes proposed projects based on the significance of potential project impacts and risks. A project’s category is determined by the category of its most environmentally sensitive component, including the direct, indirect, cumulative, and induced impacts in the project’s area of influence. Each proposed project is scrutinized per its type, location, scale, sensitivity and magnitude of potential environmental impact. A project is assigned by ADB to one of the following categories:

(i) Category A. A proposed project is classified as category A when it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. The impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment, including an EMP, is required.

(ii) Category B. A proposed project is classified as category B if its potential adverse environmental impacts are less adverse and fewer in number than those of the category A projects. These impacts are site-specific, few if any of them are irreversible, and under most circumstances mitigation measures can be readily put forward than that for the category A projects. An initial environmental examination, including an EMP, is required.

(iii) Category C. A proposed project is classified as category C when it is likely to have minimal or no adverse environmental impacts. No environmental impact assessment or initial environmental examination is required although environmental implications need to be reviewed.

(iv) Category FI. A proposed project is classified as category FI if it involves investment of the ADB funds to or through a financial intermediary.

78 Under the ADB’s SPS (2009), the Project is classified as category B for environment. Therefore, this initial environment examination including an environmental management plan (Appendix 1) was prepared in compliance with the SPS. The findings of the domestic EIA, the domestic feasibility studies, and the CRVA conducted for the Project were incorporated into the IEE report.

79 Compared with the PRC EIA requirements, the ADB SPS has additional requirements, including: (i) project grievance redress mechanism (GRM); (ii) definition of the project area of influence; (iii) assessment of indirect, induced and cumulative impacts; (iv) due diligence of associated facilities; (v) protection of physical and cultural resources; (vi) climate change mitigation and adaptation; (vii) occupational and community health and safety; (viii) impact on livelihoods through environmental media; (ix) biodiversity conservation; (x) environmental audit of existing facilities; and (xi) a project-specific EMP. This IEE report prepared for the Project complies with these SPS requirements.

C. International Agreements

80 The PRC is signatory to various international agreements dealing with environment protection, biodiversity preservation, wetland protection, climate change, etc. The relevant agreements with direct and indirect implications are listed in Table II-6.

20

Table II-6: Applicable International Agreements

No. Agreement Year Purpose

1. Ramsar Convention on Wetlands of International Importance Especially as Waterfowl Habitat

1975 Prevention of the progressive encroachment on loss of wetlands for now and the future

2. Convention on Biological Diversity 1993 Conservation and sustainable use of biological diversity and ecological values.

3. United Nations Framework Convention on Climate Change

1994 Stabilization of greenhouse gas concentrations in the atmosphere

4. Kyoto Protocol to the United Nations Framework Convention on Climate Change

2005 Further reduction of greenhouse gas emissions

5. Montreal Protocol on Substances That Deplete the Ozone Layer

1989 Protection of the ozone layer

6.

United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification

1996 The combatting of desertification and mitigating of the effects of drought

7. Convention on The Law of The Non-Navigational Uses of International Watercourses

1997 Identify the United Management Mechanism of international water resources to achieve sustainable development planning and promote rational and optimal utilization and protection of water

8. Convention on the International Trade in Endangered Species of Wild Fauna and Flora (CITES)

1984 Protect certain species of wildlife and plants from over-exploitation and utilization as a result of international trade

9. UN Framework Convention on Climate Change

1994 Stabilizing greenhouse gas concentrations in the atmosphere at a level that will prevent anthropogenic induced climate change


D. Comparison between the PRC and International Standards

81 Some of the PRC environmental standards are comparable to or more stringent than internationally accepted standards. Examples of such standards include the 24-h SO2 Class I standard, 24-h PM10 Class I and II standards, and annual and 1-h NO2 Classes I and II standards, which are comparable to the WBG EHS interim targets and air quality guideline (AQG). Some of the other PRC standards, such as CO and day time noise, are more stringent than the US Environmental Protection Agency (EPA) standards.

82 On the other hand, not all the PRC standards are always comparable to the standards suggested in international guidelines. Some of the PRC standards are not defined in international guidelines. For example, internationally accepted standards are lacking for NH3 and TSP, which are defined in the PRC ambient air quality standards. The exposure/averaging time period of some PRC ambient air quality standards are not included in the WGG’s EHS guideline. Environmental quality standards for noise of the PRC are defined for noise functional area categories by taking into consideration of influencing factors in the area such as road and rail traffic, and are different from the classification of the EHS guidelines that do not take the influencing factors into consideration. Other parameters that could not be fully comparable to international standards include surface and marine water quality standards (see Table II-7).

Table II-7: Comparison between the PRC and International Standards Parameter PRC standards International standards Remarks

Ambient air quality GB-3095-2012 WHO Air Quality Guidelines Global Update (2005);

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Parameter PRC standards International standards Remarks

USEPA TSP 0.12 mg/m3 (Class I, 24h)

0.30 mg/m3 (Class II, 24h) WHO: No standard USEPA: No standard

No comparison possible

CO 4.0 mg/m3 (Class I, 24h) 4.0 mg/m3 (Class II, 24h)

WHO: No standard USEPA: 10 mg/m3

PRC standard is more stringent than USEPA

NO2 0.08 mg/m3 (Class I, 24h) 0.08 mg/m3 (Class II, 24h) 0.20 mg/m3 (Class I, 1h) 0.20 mg/m3 (Class II, 1h)

WHO: 0.04 mg/m3 (365d); 0.20 mg/m3 (1h) USEPA: 0.14 mg/m3 (24h)

PRC and WHO standards are either not compatible given the different time periods, or the same for same time period. PRC standard is more stringent than USEPA standard

PM10 0.05 mg/m3 (Class I, 24h) 0.15 mg/m3 (Class II, 24h)

WHO: 0.05 mg/m3 (24h) USEPA: 0.15 mg/m3 (24h)

PRC standards are comparable to WHO and EPA standards.

Ambient acoustic quality standard

GB-3096-2008 World Health Organization (1999)

LAeq (dBA) 45/55 (night/day, Category 1) 50/60 (night/day, Category 2) 55/65 (night/day, Category 3) 55/70 (night/day, Category 4a) 60/70 (night/day, Category 4b)

Class I: 45/55 (night/day) Class II: 70/70 (night/day)

WHO Class I: Residential, institutional, educational WHO Class II: Industrial, commercial

Surface water quality standard

GB-3838-2002

No comparable standard identified/suggested in the EHS guideline COD 15 mg/L (Category 2)

20 mg/L (Category 3) 30 mg/L (Category 4)

NH3-N 0.5 mg/L (Category 2) 1.0 mg/L (Category 3) 1.5 mg/L (Category 4)

TP 0.1 mg/L (Category 2) 0.2 mg/L (Category 3) 0.3 mg/L (Category 4)

Sea water quality standard

GB-3097-1997 No comparable standard identified/suggested in the EHS guideline COD 2 mg/L (Category 1)

3 mg/L (Category 2) 4 mg/L (Category 3) 5 mg/L (Category 4)

Inorganic. N 0.2 mg/L (Category 1) 0.3 mg/L (Category 2) 0.4 mg/L Category 3) 0.5 mg/L (Category 4)

Active P 0.015 mg/L (Category 1) 0.030 mg/L (Category 2) 0.030 mg/L (Category 3) 0.045 mg/L (Category 4)

Noise standards for industrial enterprises at site boundary

GB 12348-2008 World Health Organization (1999)

WHO Class I: Residential, institutional, educational WHO Class II: Industrial, commercial

LAeq (dBA) 55/45 (day/night, Category 1) 60/50 (day/night, Category 2) 65/55 (day/night, Category 3) 70/55 (day/night, Category 4)

Class I: 45/55 (night/day) Class II: 70/70 (night/day)

Noise standards of construction site boundary

GB 12523-1990 USEPA PRC standards more stringent than international standards

LAeq (dBA) 75/55 (Earth works, day/night) 85 (Pile driving, day; banned for night) 70/55 (Structural works, day/night) 65/55 (Exterior and interior finishing works, day/night)

85 (day, 8h exposure)

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Parameter PRC standards International standards Remarks Construction-induced Vibration

GB 10070–88 No comparable standard identified/suggested in the EHS guideline Z (dB) 80/80 (day/night, Both sides of

railway main line) 65/65 (day/night, Special residential area) 70/67 (day/night, Residential, cultural and educational area)


E. Assessment Standards for Project Construction and Operation

83 In this project area, Class II standard stated in “Ambient Air Quality Standards (GB3095-2012)”. For point source air emissions during construction, “Integrated emission standards of air pollutants (GB 16297-1996)” for fugitive dust emission and Class II stated in “Emission standards for odor pollutants (GB14554-93)” are the relevant standards.

84 The area of influence for water quality assessment for project site will follow Class V stated in “Environmental quality standards for surface water (GB3838-2002)” and Class III stated in “Standards for groundwater quality (GB/T14848-2017)”.

85 The ambient noise assessment will follow the Class II stated in “Environmental quality standards for noise (GB3096-2008)”. During construction, the noise emission will follow “Noise standards of construction site boundary (GB12523-2011)”, and during operation, the noise emission will follow Class II in “Noise Standards for Industrial Enterprises at Site Boundary (GB12348-2008)”.

86 During project construction, solid waste will be identified and hazardous waste will be disposed by qualified agencies. General waste disposal will follow “Standards for Pollution Control on the Storage and Disposal Site for General Industrial Solid Waste (GB18599-2001)”.

a. Ambient Air Quality The PRC ranks air quality into two classes according to its Ambient air quality standards

(GB 3095-2012). The Class I standard applies to nature reserves, scenic areas, and regions requiring special protection. The Class II standard applies to residential areas, mixed residential

and commercial areas, cultural areas, industrial zones, and rural areas. The project assessment of air quality was conducted in accordance with the GB 3095-2012 Class II

standard and World Bank EHS guidelines as listed in

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87 Table II-8..

88 WHO established air quality guideline (AQG) standards for various air quality parameters for the protection of public health. Yet WHO recognizes that progressive actions are needed to achieve these standards as there are financial and technological limitations in some countries, cities or localities especially in developing countries. Interim targets were therefore established as intermediate milestones towards the achievement of the AQG. The longer averaging period such as annual average is more applicable for assessing impacts from multiple and regional sources, while shorter averaging periods such as 24 hours and 1 hour averages are more applicable to the assessment of short-term impacts from project-related activities such as daily or peak construction activities.

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Table II-8: Comparison of PRC and WBG Ambient Air Quality Standards

Air Quality Parameter

Averaging Period

PRC GB 3095-2012 (μg/m3) WHO/World Bank Group EHS5

(μg/m3)

Class I Class II Interim Targets AQG

SO2 1-year 20 60 n/a n/a 24-hour 50 150 50 - 125 20 1-hour 150 500 n/a n/a

TSP 1-year 80 200 n/a n/a 24-hour 120 300 n/a n/a

PM10 1-year 40 70 30 - 70 20 24-hour 50 150 75 - 150 50

PM2.5 1-year 15 35 15 - 35 10 24-hr 35 75 37.5 - 75 25

NO2 1-year 40 40 n/a 40 24-hour 80 80 n/a n/a 1-hour 200 200 n/a 200

CO 24-hour 4,000 4,000 n/a n/a 1-hour 10,000 10,000 n/a n/a

Note: n/a = not available SO2= sulfur dioxide, TSP= total suspended particulates, PM10= Particulate Matter smaller than 10 micrometers; PM2.5= Particulate Matter smaller than 2.5 micrometers, NO2= nitrogen dioxide, CO= carbon monoxide.


5 World Bank Group 2007, ibid.

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89 Table II-8 shows that:

(i) the WBG interim targets are comparable to the PRC’s GB 3095–2012 Class II standard;

(ii) 24-hr SO2: the upper limit of EHS interim target (125 μg/m3) is 17% more stringent than GB Class II standard (150 μg/m3), while the lower limit of EHS interim target (50 μg/m3) is the same as the GB Class I standard;

(iii) 24-hour PM10: the upper limit of the EHS interim target (125 μg/m3) is the same as GB Class II standard, while the AQG is the same as the GB Class I standard

(iv) 24-hr PM2.5: the upper limit of the EHS interim target (75 μg/m3) is the same as GB Class II standard; and

(v) 24-hour NO2: the EHS AQG (200 μg/m3) is the same as GB Class II standard.

b. Fugitive Particulate Matters and Odor Emission

90 Fugitive emission of particulate matters (such as dust from construction sites) is regulated under the Integrated Emission Standard of Air Pollutants of the PRC (GB 16297-1996), which sets 120 mg/m3 as the maximum allowable emission concentration and ≤1.0 mg/m3 as the

concentration limit at the boundary of construction sites, with no specification on the particle diameter.

91 Odor from the sheep breed bases should follow the Emission Standards for Odor Pollutants (GB 14554-93). The maximum allowable concentrations at the site boundary for NH3, H2S and odor are 1.5 mg/m3, 0.06 mg/m3, and “20” (dimensionless), respectively.

c. Surface Water Quality

92 The determining standard is PRC’s Environmental Quality Standards for Surface Water (GB 3838-2002). This defines five categories reflecting different environmental functions:

93 The water quality standard applied in this IEE is the Environmental quality standards for surface water of the PRC (GB 3838–2002). The PRC Surface Water Environment Quality Standard defines five water quality grades for different environmental functions: Grade I – highest water quality, for headwaters and national nature reserves; Grade II – drinking water sources in Class I protection areas, habitats for rare aquatic organisms, breeding grounds for fish and crustaceans, and feeding grounds for fish fry; Grade III – drinking water sources in Class II protection areas, wintering grounds for fish and crustaceans, migration routes, water bodies for aquaculture and capture fishery, and swimming; Grade IV – general industrial use and non-contact recreational activities; Grade V – lowest quality, suitable only for agricultural and scenic water uses (Table II-9). The World Bank Group has guidelines on effluent quality standards but not ambient water quality and recognizes the use of local criteria for EHS purpose.

Table II-9: Environmental Quality Standards for Surface Water

Parameter unit Category

I II III IV V

pH 6 ~ 9 6 ~ 9 6 ~ 9 6 ~ 9 6 ~ 9 Dissolved oxygen (DO) mg/L ≥7.5 ≥6 ≥5 ≥3 ≥2 Permanganate index () NA ≤2 ≤4 ≤6 ≤10 ≤15

Chemical oxygen demand (COD) mg/L ≤15 ≤15 ≤20 ≤30 ≤40 5-day biochemical oxygen demand

(BOD5) mg/L ≤3 ≤3 ≤4 ≤6 ≤10

Ammonia nitrogen (NH3-N) mg/L ≤0.15 ≤0.5 ≤1.0 ≤1.5 ≤2.0 Total phosphorus (as P) mg/L ≤0.02 ≤0.1 ≤0.2 ≤0.3 ≤0.4

Lakes & reservoirs mg/L ≤0.01 ≤0.025 ≤0.05 ≤0.1 ≤0.2

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Parameter unit Category

I II III IV V Total nitrogen (lakes, reservoirs, as

N) mg/L ≤0.2 ≤0.5 ≤1.0 ≤1.5 ≤2.0

Copper (Cu) mg/L ≤0.01 ≤1.0 ≤1.0 ≤1.0 ≤1.0 Zinc (Zn) mg/L ≤0.05 ≤1.0 ≤1.0 ≤2.0 ≤2.0

Fluoride (as F-) mg/L ≤1.0 ≤1.0 ≤1.0 ≤1.5 ≤1.5 Selenium (Se) mg/L ≤0.01 ≤0.01 ≤0.01 ≤0.02 ≤0.02 Arsenic (As) mg/L ≤0.05 ≤0.05 ≤0.05 ≤0.1 ≤0.1 Mercury (Hg) mg/L ≤0.0005 ≤0.0005 ≤0.0001 ≤0.001 ≤0.001

Cadmium (Cd) mg/L ≤0.001 ≤0.005 ≤0.005 ≤0.005 ≤0.01 Chromium (Cr, hexavalent) mg/L ≤0.01 ≤0.05 ≤0.05 ≤0.05 ≤0.1

Lead (Pb) mg/L ≤0.01 ≤0.01 ≤0.05 ≤0.05 ≤0.1 Cyanide (CN) mg/L ≤0.005 ≤0.05 ≤0.2 ≤0.2 ≤0.2 Volatile phenol mg/L ≤0.002 ≤0.002 ≤0.005 ≤0.01 ≤0.1

Total petroleum hydrocarbon (TPH) mg/L ≤0.05 ≤0.05 ≤0.05 ≤0.5 ≤1.0 Anionic surfactant mg/L ≤0.2 ≤0.2 ≤0.2 ≤0.3 ≤0.3

Sulfide mg/L ≤0.05 ≤0.1 ≤0.2 ≤0.5 ≤1.0 Fecal coliform bacteria no./L ≤200 ≤2000 ≤10000 ≤20000 ≤40000

Source: PRC GB 3838-2002

d. Groundwater

94 In the PRC, this is divided into five categories according to the Quality Standards for Ground Water (GB/T 14848-2017) (Table II-10). Category III or above is suitable as drinking water. Category IV can only be used for drinking water after treatment.

Table II-10: Ground Water Quality Standards

Parameter Unit Category

I II III IV V Color HU ≤5 ≤5 ≤15 ≤25 >25

Odor and taste --- none none none None none Turbidity NTU ≤3 ≤3 ≤3 ≤10 >10

Visible object --- none none none None none

pH --- 6.5~8.5 6.5~8.5 6.5~8.5 5.5~6.5, 8.5~9

<5.5, >9

Total hardness (as CaCO3) mg/L ≤150 ≤300 ≤450 ≤550 >550 Total dissolved solid (TDS) mg/L ≤300 ≤500 ≤1000 ≤2000 >2000

Sulfate (SO42-) mg/L ≤50 ≤150 ≤250 ≤350 >350

Chloride (Cl-) mg/L ≤50 ≤150 ≤250 ≤350 >350 Iron (Fe) mg/L ≤0.1 ≤0.2 ≤0.3 ≤1.5 >1.5

Manganese (Mn) mg/L ≤0.05 ≤0.05 ≤0.1 ≤1.0 >1.0 Copper (Cu) mg/L ≤0.01 ≤0.05 ≤1.0 ≤1.5 >1.5

Zinc (Zn) mg/L ≤0.05 ≤0.5 ≤1.0 ≤5.0 >5.0 Molybdenum (Mo) mg/L ≤0.001 ≤0.01 ≤0.1 ≤0.5 >0.5

Cobalt (Co) mg/L ≤0.005 ≤0.05 ≤0.05 ≤1.0 >1.0 Volatile phenol mg/L ≤0.001 ≤0.001 ≤0.002 ≤0.01 >0.01

Anionic surfactant mg/L non-detected

≤0.1 ≤0.3 ≤0.3 >0.3

Permanganate index (IMn) mg/L ≤1.0 ≤2.0 ≤3.0 ≤10 >10 Nitrate (NO3

-, as N) mg/L ≤2.0 ≤5.0 ≤20 ≤30 >30 Nitrite (NO2

-, as N) mg/L ≤0.001 ≤0.01 ≤0.02 ≤0.1 >0.1 Ammonia nitrogen (NH3-N) mg/L ≤0.02 ≤0.02 ≤0.2 ≤0.5 >0.5

Fluoride (F-) mg/L ≤1.0 ≤1.0 ≤1.0 ≤2.0 >2.0 Iodide (I-) mg/L ≤0.1 ≤0.1 ≤0.2 ≤1.0 >1.0

Cyanide (CN) mg/L ≤0.001 ≤0.01 ≤0.05 ≤0.1 >0.1 Mercury (Hg) mg/L ≤0.00005 ≤0.00005 ≤0.001 ≤0.001 >0.001 Arsenic (As) mg/L ≤0.005 ≤0.01 ≤0.05 ≤0.05 >0.05

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Parameter Unit Category

I II III IV V Selenium (Se) mg/L ≤0.01 ≤0.01 ≤0.01 ≤0.1 >0.1 Cadmium (Cd) mg/L ≤0.0001 ≤0.001 ≤0.01 ≤0.01 >0.01

Hexavalent chromium (Cr6+) mg/L ≤0.005 ≤0.01 ≤0.05 ≤0.1 >0.1 Lead (Pb) mg/L ≤0.005 ≤0.01 ≤0.05 ≤0.1 >0.1

Beryllium (Be) mg/L ≤0.00002 ≤0.0001 ≤0.0002 ≤0.001 >0.001 Barium (Ba) mg/L ≤0.01 ≤0.1 ≤1.0 ≤4.0 >4.0 Nickel (Ni) mg/L ≤0.005 ≤0.05 ≤0.05 ≤0.1 >0.1

Dichlorodiphenyltrichloroethane (DDT) μg/L non-detected

≤0.005 ≤1.0 ≤1.0 >1.0

Lindane (666) μg/L ≤0.005 ≤0.05 ≤5.0 ≤5.0 >5.0 Total coliform bacteria no./L ≤3.0 ≤3.0 ≤3.0 ≤100 >100

Total bacteria no./L ≤100 ≤100 ≤100 ≤1000 >1000 Total alpha (α) radioactivity Bq/L ≤0.1 ≤0.1 ≤0.1 >0.1 >0.1 Total beta (β) radioactivity Bq/L ≤0.1 ≤1.0 ≤1.0 >1.0 >1.0

Source: PRC GB/T 14848-2017

e. Noise

95 Noise impacts of the project activities were evaluated against the Class II limits of the Environmental Quality Standards for Noise (GB3096-2008), which divides the standards into five categories based on their tolerance of functional areas to noise pollution: Category 0 to Category 4. Category 0 is for areas with convalescent facilities that are the least tolerant to noisy environment and therefore has the most stringent day and night time noise limits. Category 1 is for areas predominated by residential areas, hospitals and clinics, educational institutions, and research centers. Category 2 is for areas with mixed residential and commercial functions. Category 3 is for areas with industrial production and storage and logistics functions. Category 4 is for areas adjacent to traffic noise sources such as major roads and railways, which is further subdivided into 4a and 4b with the former applicable to major road and marine traffic noise, and the latter applicable to rail noise.

96 Technical specifications for regionalizing environmental noise functions (GB/T 15190–2014) define the distances for 4a and 4b areas from the road/railway boundary to be (i) 50 m ± 5 m for Category 1 noise functional area; (ii) 35 m ± 5 m for Category 2 noise functional area; and (iii) 20 m ± 5 m for Category 3 noise functional area. Beyond the 4a or 4b areas, the limits of noise level are based on the respective noise functional area categories.

97 The Environmental Quality Standards for Noise (GB3096-2008) of the PRC for various noise categories are listed along with the WBG’s EHS guidelines in Table II-11. The table shows that the EHS guidelines have lower noise limits for residential, commercial, and industrial mixed areas but higher noise limits for industrial areas than the PRC noise standards. The EHS guidelines do not differentiate the influencing factors such as major roads or railways and apply the same noise limits solely based on the types of areas, such as residential or industrial areas.

98 PRC’s Noise Standards of Construction Site Boundary (GB 12523-2011) regulates construction noise, limiting construction noise levels at the construction site boundary to 70 dB(A) in the day time (06:00–22:00) and 55 dB(A) at night (22:00–06:00). The World Bank Group does not have standards for construction noise per se but applies the same noise standards listed in Table II-11 to the receptors during construction activities.

Table II-11: Environmental Quality Standards for Noise [dB(A)]

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Noise Functional Area Category

Applicable Area

GB 3096-2008 Standards

WBG EHS6 Standards

Day 06:00-22:00

Night 22:00-06:00

Day 07:00-22:00

Night 22:00-07:00

0 Areas needing extreme quiet, such as convalescence areas

50 40

55 45 1 Areas mainly for residence, hospitals, cultural and educational institutions, administration offices

55 45

2 Residential, commercial and industrial mixed areas

60 50

3 Industrial areas, warehouses and logistic parks 65 55 70 70

4a

Within the following distances from both sides of trunk road: (i) 50 m ± 5 m for Category 1 functional area (ii) 35 m ± 5 m for Category 2 functional area (iii) 20 m ± 5 m for Category 3 functional area

70 55

55 45

4b

Within the following distances from both sides of railway: (i) 50 m ± 5 m for Category 1 functional area (ii) 35 m ± 5 m for Category 2 functional area (iii) 20 m ± 5 m for Category 3 functional area

70 607

Source: PRC GB/T 12523-2011

f. Wastewater Discharge

99 Wastewater discharge is regulated under the Integrated Wastewater Discharge Standards of the PRC (GB 8978-1996). The Class I standards apply to discharges into Category III water bodies under GB 3838-2002. The Class II standards apply to discharges into Categories IV and V water bodies. The Class III standards apply to discharges into municipal sewers that drain to municipal WWTPs with secondary treatment.

6 World Bank Group 2007, ibid. 7 Night time noise standard for construction and operational or with EIA approval before 31 December 2010 is 70 dB(A) according to GB 12525-90 (amendment) Noise Limit and Its Measurement Method.

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100 Table II-12 shows the discharge standards.

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Table II-12: Standards for Wastewater Discharge (mg/L, pH excluded)

Parameter

Class I Class II Class III

For discharge to Category III water body

For discharge to Category

IV and V water bodies

For discharge to municipal

sewers

pH 6–9 6–9 6–9 SS mg/L 70 150 400 BOD5 mg/L 20 30 300 COD mg/L 100 150 500 TPH mg/L 5 10 20 Volatile phenol mg/L 0.5 0.5 2.0 NH3-N mg/L 15 25 --- phosphate (as P) mg/L 0.5 1.0 --- LAS (anionic surfactant) mg/L

5.0 10 20

SS= suspended solid; COD = chemical oxygen demand; BOD5 = 5 days biochemical oxygen demand; NH3-N= ammonia nitrogen; TPH = total petroleum hydrocarbons. Source: PRC GB/T 8978-1996.

g. Odor pollutant

101 Odor pollutant generated from the subproject 3 operation is regulated under PRC’s Emission standards for Odor Pollutants (GB 14554-93). There is no equivalent standard recommended in the EHS Guidelines, and the PRC standard is adopted for use in this IEE report.

Table II-13: Applicable odor pollutant standard

No. Parameter Category II Standard at the site boundary

(mg/m3, Odor concentration excluded)

1 Ammonia 2.0

2 Trimethylamine 0.15

3 H2S 0.10

4 Methyl mercaptan 0.01

5 Dimethyl sulfide 0.15

6 Dimethyl disulfide 0.13

7 Carbon disulfide 5.0

8 Styrene 7.0

9 Odor concentration 30 Source: PRC GB 14554-93.

F. Project Environmental Administrative Framework

102 Article 16 of the “PRC Environmental Impact Assessment Law (2016)” stipulates that an EIA document is required for any capital construction project producing significant environmental impacts so as to provide a comprehensive assessment of these potential environmental impacts. On 2 September 2008, the former Ministry of Environment Protection (MEP) released the “Management Guideline on EIA Categories of Construction Projects,” which came into effect on 1 October 2008, and which classifies projects into three categories:

• Category A: Projects with significant adverse environmental impacts, for which an EIA report is required;

• Category B: Projects with adverse environmental impacts which are of a less degree and/or significant than those of Category A, for which a tabular EIA report is required; and

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• Category C: Projects that are unlikely to have adverse environmental impacts, for which an EIA registration form is required.

103 Under the PRC law, the full EIA report and the simplified tabular EIA report for Category A and B are similar to ADB’s EIA and IEE, respectively. The registration form of an EIA is equivalent to an ADB Category C project. The guideline is an amendment to the “Management Guideline of Environmental Protection Categories of Construction Projects (2002).” The new guideline provides detailed classifications of EIAs into 23 general categories and 198 subcategories based on the project’s nature (e.g., water resources development, agriculture, energy, waste management, etc.), scale, and environmental sensitivity (e.g., protected nature reserves and cultural heritage sites). In accordance with the guideline, the proposed project has been classified into the subcategories of social and regional development.

104 The Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects (2009) provides two prescribed lists of projects for which EIAs must be reviewed and approved. The guideline was amended in 2009 to include a list of construction projects for which EIAs require MEE review and approval, and a list of projects for which EIAs will be delegated to the provincial/municipal EEBs. Since the project is environment-friendly, the EIAs of the proposed components were approved by the relevant municipal EEBs.

G. Relevant Environmental Laws and Standards of Mongolia

105 Mongolia has enacted a comprehensive policy and legal framework for environmental assessment and management. It has policies, legislation and strategies in place to manage protected areas such as national parks, to satisfy its international obligations, and to protect the quality of the environment for the health and well-being of its citizens. The hierarchy of policies and legislative provisions for environmental management in Mongolia comprises the Constitution, international treaties, policies, and environment and resource protection laws8

106 The overarching policy on environmental resources and their protection is set out in the 1992 Constitution of Mongolia. The Constitution provided the impetus for the Government of Mongolia (GoM) to enact a series of environmental laws, regulations and standards. Among these, the Law on Environmental Protection and Law on Environmental Impact Assessment provide the core framework and general procedure and guidelines on environmental assessment. Relevant environmental laws in Mongolia are shown in Tables II-14 to 15.

Table II-14: Relevant environmental laws in Mongolia (1)

8 UNDP. 2008. Philips Tortell, Ts. Adiyasuren and N. Erdenesaikhan, Institutional Structures for Environmental Management in Mongolia. 9 Latest amended year

Law Year9 Purpose

Law on Subsoil

1988 Regulates relations concerning the use and protection of subsoil in the interests of present and future generations.

Law on Special Protected Areas

1994 (2004)

Regulates relations concerning the use and taking of areas under special protection (natural conservation parks, natural complex areas, natural reserves and national monument areas).

Law on Land 1994 (2012)

Regulates the possession and use of land by a citizen, entity and organization, and other related issues. Articles 42/43 provide guide on removing possessed land and granting of compensation relative to removing.

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Table II-15: Relevant environmental laws in Mongolia (2)

Law Year Purpose

Law on Water Pollution Fees

2012 (2019)

Introduces fees payable for pollution of water resources

Law on Plant Protection

1996 (2007)

Regulates the inhibition, protection, inspection of pasturelands and plants.

Law on Buffer Zones

1997

Regulates the determination of special protected area buffer zones and the activities. Article 9 requires the conduct of detailed environmental assessment for the establishment of water reservoirs or construction of floodwalls or dams in buffer zones for special protected areas.

Law on Environmental

Impact Assessment

1998 (2012)

Regulates “relations concerning protection of the environment, prevention of ecological imbalance, the use of natural resources, assessment of the environmental impact and decision-making on the start of a project”. It sets out the general requirements and procedures for project screening and conduct of environmental assessment and review.

Law on Hygiene 1998

Governs relationships concerning maintenance of sanitary conditions, defining the general requirements for sanitation in order to ensure the right of an individual to healthy and safe working and living conditions, ensuring normal sanitary conditions, and defining the rights and duties of individuals, economic entities and organizations with this respect.

Law on Protection of Cultural Heritage

2001

Regulates the collection, registration, research, classification, evaluation, preservation, protection, promotion, restoration, possession and usage of cultural heritage including tangible and intangible heritage.

Civil Code of Mongolia

2002 Article 502 stipulates the liability for damage to environment.

Law on Waste 2012

(2017) Governs the collection, transportation, storage, and depositing in landfills of household and industrial waste, and re-using waste as a

Law on Environmental Protection

1995 (2012)

Regulates “relations between the state, citizens, economic entities and organizations in order to guarantee the human right to live in a healthy and safe environment, have ecologically balanced social and economic development, and for the protection of the environment for present and future generations, the proper use of natural resources and restoration of available resources”. Article 7 requires the conduct of natural resource assessment and environmental impact assessment to preserve the natural state of the environment, and Article 10, the conduct of environmental monitoring on the state and changes of the environment.

Law on Air 2012 Regulates the protection of the atmosphere to provide environmental balance and for the sake of present and future generations. Allows Government to set standard limits to emissions from all sources. Provides for the regular monitoring of air pollution, hazardous impacts and changes in small air components such as ozone and hydrogen.

Law on Forests

2012 Regulates relations for protection, possession, sustainable use and reproduction of the forest in Mongolia. Defines prohibited activities in protected forest zones and their regimes and conditions when undertaking allowed activities in the utilization zone forests and their regimes.

Law on Natural Plants

1995 Regulates the protection, proper use, and restoration of natural plants other than forest and cultivated plants.

Law on Water 2012 Regulates relations pertaining to the effective use, protection and restoration of water resources. Specifies regular monitoring of the levels of water resources, quality and pollution. Provides safeguards against water pollution.

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Law Year Purpose

source of raw materials to eliminate hazardous impacts of household and industrial waste on public health and the environment. Undertakings that generate significant amount of wastes must dispose of the wastes in designated landfills that meet prescribed standards.

Law on Disaster Protection

2003 (2012)

Regulates matters relating to the principles and full powers of disaster protection organizations and agencies, their organization and activities, as well as the rights and duties of the State, local authorities, enterprises, entities and individuals in relation to disaster protection.

Law on soil protection and

prevention from desertification

2012 Regulates matters related protection of soil deterioration, reclamation, and prevention from desertification

Environmental Policy of Mongolia

107 A fundamental principle of the Mongolian state environmental policy is that economic development must be in harmony with the extraction and utilization of natural resources and that air, water and soil pollution will be controlled. Mongolia’s National Council for Sustainable Development was established to manage and organize activities related to sustainable development in the country. The country’s strategy is designed for environmentally friendly, economically stable and socially wealthy development, which emphasizes people as the determining factor for long-term sustainable development.

108 The health of Mongolia's natural ecosystems and populations of wild species is of both national and global importance. The country forms an important part of the global ecosystem in the ecological transition zone in Central Asia, where the great Siberian taiga, the Central Asian steppe, the high Altai Mountains, and the Gobi Desert converge.

109 The main policy documents include the National Environmental Action Plan of 1996, updated in 2000; the State Policy for Ecology of 1997; the National Plan of Action to Combat Desertification, updated in 2010; the Biodiversity Conservation Action Plan of 1996 (now the Rare Animals Protection Plan of 2012); and the National Plan of Action for Protected Areas, all developed under the Ministry of Environment and Tourism (MET) auspices, as well as the Mongolian Action Programme for the 21st Century, developed by the National Council for Sustainable Development in 1996.

110 The National Action Plan for Climate Change was added in 2000 and updated in 2011. Several program documents, e.g., the National Water Program (updated in 2011), National Forestry Program; Program of Protection of Air; Sustainable Development Education Program (2009-2019); Special Protected Areas; and Protection of Ozone Layer; were also completed during this period. In addition, other guidance documents with important environmental repercussions were developed under the auspices of other ministries and these include the Roads Master Plan, the Power Sector Master Plan, the Tourism Master Plan, and the Renewable Energy Master Plan. Interrelated documents, such as the annual Human Development Reports, have increasingly incorporated environmental aspects.

Requirement for Mongolian Domestic EIA

111 In accordance with the EIA laws and associated regulations of Mongolia, at the detailed design stage of construction facilities, the PIU or contractor should provide materials (including the final feasibility study report, environmental baseline report of the project site, detailed design documents) to the Ministry of Environment and Tourism (MET) to screen and issue a General Environmental Impact Assessment (GEIA) conclusion. The GEIA conclusion will lead to one of

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the following three actions based on MET’s review of the project documents:

• The project is allowed to proceed with construction, provided that certain conditions set in the GEIA conclusion are followed; or

• The project is not permitted to be implemented due to its irreversible negative impacts to the surrounding environment and/or community health; or

112 The project is required to undergo a detailed EIA (DEIA) for identification of potential impacts, avoidance of negative impacts with mitigation measures, and elaboration of an EMP. The DEIA should be conducted by a government licensed EIA company. Upon completion, the DEIA will be reviewed by the EIA committee of the MET for approval.

Domestic Assessment Standards for Project Construction and Operation

113 Key national standards of Mongolia that will be complied during Project construction and operation periods are listed in Table II-16. It gives relevant key environmental quality standards for this IEE and local GEIA and DEIA to be complied during the project construction and operation phases.

Table II-16: Relevant Mongolian National Standards to be applied for Project Construction and Operation

Environmental Media National Standard in Force

Ambient air MNS 4585: 2007

Noise MNS 4584:2007

Soil MNS 5850:2008

Drinking water (groundwater) MNS 900:2016

Effluent wastewater MNS 4943: 2011

Ambient surface water MNS 4586:1998

Groundwater MNS 900: 2005

114 For wastewater reuse, the Mongolian effluent standards will be met (MNS 4943: 2011). In addition, World Health Organization (WHO) Guidelines10 for the safe use of wastewater will be met (for more details, comparison of Mongolian and international Standards is included in the following subchapter E). These guidelines specify health targets of ≤1 helminth egg per liter (l) for agricultural use. The guidelines state that ‘this level of health protection could be met by treatment of wastewater’. Stabilization ponds, because of the retention time, can be used as a surrogate to assure compliance with the ≤ 1 egg/l, therefore the chosen technology for the project will meet WHO standards because of the use of stabilization ponds, primary and secondary treatment.

115 In addition to the listed Mongolia National Standards in Table II-6, Mongolia also has an occupational health and safety standard (MNS 5002:2000). Article 16 of the National Constitution of Mongolia states that every employee has the right to ‘suitable conditions of work’. The Government adopted a National Program for occupational Safety and Health Improvement in 2001 and national standards are also adopted such as the National Standard on occupational Health and Safety MNS 5002:2000 which support the Law on Labor Safety and Hygiene (2008) which sets out policies, rules and regulations on occupational safety and health, and the most common requirements for workplace safety. Table II-17 lists the relevant national

10 World Health Organisation Guidelines for the safe use of wastewater, excreta and greywater; Volume Wastewaterr use in agriculture

35

environmental standards of Mongolia.

36

Table II-17: Mongolian National Environmental Standard and Guidelines

Code Name of Standards and Guidelines

MNS 6298:2011 Boiler Emissions Guidelines: The Permissible Level of Air Pollutants from Power and Heating Plants.

MNS 5919:2008 The Permissible Level of Air Pollutants from Operations of Water Heating and Steam Generating Facilities at Power and Heating Plants

MNS 17.5.1.18:1983 Environmental Protection: Rehabilitation of Eroded Land/Category of Eroded Land.

MNS 17.5.1.19:1992 Environmental Protection: The General Requirements for Rehabilitation of Eroded Lands

MNS 3473:1983 Environmental Protection. Land, Land Use and Terms and Definitions

MNS 17.5.13:1980 Environmental Protection: Rehabilitation of Eroded Land, Terms and Definitions

MNS 17.0.0.06:1979 The System of Standards for Environmental Protection and Basic Rules

MNS 5914:2008 Environmental Protection: Rehabilitation of Eroded Land, Terms and Definitions

MNS 5918:2008 The General Technical Requirements for Vegetation of Eroded Land

MNS 17.2.0.07:1979 Air Pollutants and Category

MNS 17.2.1.17:1980 The Terms and Definitions of Industrial Pollutants to Atmosphere

MNS 4585:2016 Air Quality, The General Technical Requirements

MNS 3383:1982 The Terms and Definitions of Pollutant Sources for Atmosphere

MNS 5885:2008 The Permissible Level of Pollutant Substance to Air/General and Technical Requirements

MNS 3113:1981 The Technical Requirements for Determination of Air Emissions

MNS 17.2.3.16:1988 Guidelines for Monitoring of Air Quality in Urban Settlements

MNS 6063:2010 Air Quality: Permissible Level of Pollutants

MNS ISO 14064-2:2015

Greenhouse Gas- Second Chapter: Indicative Guidelines for Reporting and Monitoring on Changes and Adsorption of Greenhouse Emissions

MNS 3384:1982 The General and Technical Requirements for Sampling of Air Quality Test

MNS 17.1.1.10:1979 The Terms and Definitions for Water and Water Use

MNS 4047:1988 Guidelines for Monitoring of Surface Water Quality

MNS 3342:1982 The General Requirements for Protection of Underground Water from Pollution

MNS 6148:2010 Water Quality: The Permissible Level of Pollutants for Underground Water

MNS ISO 5667 13 2000

Water Quality-Sampling: Chapter 13: Sampling method for sludge from wastewater treatment plants

MNS 0899:1992 Sanitary Requirements for Sources of Water Supply to Urban and Household Purposes

MNS 0900:2005 Sanitary Requirements and Safety Assessment for Drinking

MNS ISO 5667:1:2002 Water Quality-Sampling: Chapter 1: Sampling method for drinking water

MNS ISO 5667-3:1999 Water Quality-Sampling: Chapter 3: Guidelines for handling of water samples

MNS ISO 5667:6:2001

Water Quality-Sampling: Chapter 6: Sampling method for rivers and streams

MNS 4943:2015 Water Quality: The General Requirements for Wastewater

MNS BS 8525-1:2015 The General Requirements for Grey Water

MNS ISO 5667-10:2001

Water Quality-Sampling: Chapter 10: Instructions for Sampling from Wastewater

MNS ISO 5667-7:2002

Water Quality-Sampling: Chapter 7: Instructions for Sampling from Water and Steam at Heat only Boilers (HOB)

MNS 6561:2015 Water Quality. General Requirements for Wastewater discharged to Sewerage Network

MNS 5666:2006 Water Biological Test: Determination Method of Dynamic Sludge ate Wastewater Treatment Plant

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Code Name of Standards and Guidelines

MNS 4288:1995 General Requirements for location, treatment process and levels of Wastewater Treatment Plant

MNS 3297:1991 Soil: Soil Quality Indicators and Norms in Urban Settlements

MNS 5850:2008 Soil Quality: The Permissible Levels of Soil Pollutants

MNS 3298:1991 Soil Quality: The General Requirements for Soil Sampling

MNS 3985:1987 Soil. Types of Sanitary Indicators of Soil

MNS 2305:1994 Soil. Instructions to Sampling, Packing and Storing of Soil Samples

MNS 4968:2000 Work Safety: General Requirements for Work Place

MNS 4994:2000 Work Safety: Vibrations Norm and General Requirements for Safe Operations

MNS 5147:2002 Electric and Static Conditions. Permissible Acid Level at Workplace

MNS 5150:2002 General Requirements for Safety Procedures with Electric Appliances

MNS 5146:2002 Work Safety: Electric Works; Protection and Wiring.

MNS 5145:2002 Electric Safety: The Maximum level of voltage and electric current

MNS 5002:2000 The General Requirements for Work Safety: The noise norms

MNS 0012.4.005:1985

The Labor Protection Equipment. Tools and Types

MNS 4244:1994 The General Requirements for Fire Safety

MNS 5390:2004 Work Safety and Sanitary Conditions

MNS 6458:2014 The General Requirements for Handling Toxic and Hazardous Chemicals

MNS 3474:2003 Plant Protection: The Terms and Definitions

MNS 5344:2011 The General Requirements for Transportation of Household Wastes

MNS 5872:2008 The Service Requirements for Power Supply

MNS 5043:2011 The General Technical Requirements for Boilers with capacity of 0.10 МВт - 3.15МВт

MNS 5041:2001 The General Technical Requirements for Boilers with capacity up to 100 кВт

MNS 5045:2001 The Technical Requirements for Water Heating Boiler with solid fuel

MNS 5643:2006 The General Technical Requirements for Power Transmission Sub Station with Capacity of 25-2500 кВ•А

MNS 4084:1988 The General Technical Requirements for Water Heating Unit with Solar Panel

MNS 5207:2011 The Technical Requirements for Installation of the Fiber Optic Cable

MNS AASHTO 86:2005

The Technical Requirements for Concrete Structure of Flood Protection Facilities

MNS ISO 24511:2012 Operation of Water Supply and Sewerage Network: Operations Management and Maintenance of the Sewerage Facilities

MNS ISO 24512:2012

Operations Management and Maintenance of the Water Supply Facilities

MNS 5682:2006 The Technical Requirements for Pedestrians and Access for Disable Persons

MNS 4597:2014 The Technical Requirements for Road Signs

MNS 4759:2014 The Technical Requirements for Road Marks

MNS 4596:2014 The Operational Instructions for Road Signs, Marks, Fences and Traffic Lights

MNS 5342:2007 The General Requirements for Auto Parking Facilities

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III. DESCRIPTION OF THE PROJECT

A. Introduction

116 The PRC is an active participant in the CAREC Program and is making joint efforts with Mongolia to develop CAREC Transport Corridor 4 and transform it into an economic corridor.

117 The proposed Investment Program is designed to support the participation of IMAR in RCI, especially the CAREC Program, with a focus on economic corridor development. The geographical areas to be covered by the Investment Program include: (1) Erenhot Municipality; (2) Darhan Muminggan United Banner (Damaoqi County) and Qingshan District in Baotou Municipality, (3) Arxan City in Xing’an League (Xing’an Municipality); (4) Alxa Left Banner (Azuoqi County) in Alxa League (Alxa Municipality); (5) Bayannur Municipality; and (6) SMEs11 located in IMAR through FIs. B. Project Impact and Outcome

118 Impact and Outcome. The Investment Program will be aligned with the following impact: sustainable economic development and shared prosperity for Central Asia Regional Economic Cooperation (CAREC) region achieved. The Investment Program will result in the following outcome: sustainable economic opportunities and living conditions in areas along the IMAR–Mongolia border improved.

119 Outputs: The Investment Program will deliver four major outputs to address the key constraints:

(i) Sustainable infrastructure and services for cross-border connectivity improved.12 The investment program will support sustainable infrastructure and institutional changes at five key border crossing points (BCPs) stretched over 2,000 km along the border between IMAR and Mongolia. This output comprises: (i) establishing a smart port management systems including one-stop inspection and intelligent vehicle queuing; (ii) installing a wind-powered, clean energy heating supply for the Erenhot–Zamyn-Uud ECZ; (iii) building connecting and access roads at ECZs and BCPs; (iv) improving a transit systems to smooth and speed up BCP logistics and reduce transboundary health risks including storage and transshipment facilities, customs clearance systems, and sanitary and phytosanitary clearance facilities; and (v) enhacing capacity and quality of services at the PRC–Mongolia International Hospital in Erenhot through the provision of advanced medical equipment and technical training on regional health security issues.

(ii) Ecological environment in key border towns improved. This output includes: (i) creating protective forest strips to safeguard BCP communities from sandstorms and improving their environmental conditions using smart forestation technologies such as advanced reclaimed water irrigation and intelligent fertilization; (ii) piloting a smart municipal waste collection system and introducing recycling systems to reduce negative impacts from human activities on the environment.


12 G20 Principles for Quality Infrastructure Investment will be followed such as principles of

sustainability, resilience, inclusiveness, and innovative technologies.

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(iii) Income-generating opportunities expanded. This output comprises: (i) providing local currency loans to SMEs engaged in cross-border businesses through a financial intermediation loan (FIL); (ii) strengthening IMAR’s business development service system for SMEs with particular support going toward piloting a program to support female entrepreneurs and SMEs led by women; (iii) developing an inclusive sheep value chain to creat economic opportunities for farmers in border areas by building (a) animal quarantine facilities; (b) sheep processing logistics park; (c) stud sheep breeding and farming bases at the Mandula port, and (d) a livestock tracing and management system; and (iii) establishing the Poverty Alleviation Program (PAP) to ensure that poor households, including those headed by women, are integrated into the value chain.

(iv) Cross-border cooperation mechanisms, technical project management, and institutional capacity strengthened. This output includes: (i) annual international workshops to support existing bilateral coordination mechanisms at the Erenhot–Zamyn-Uud BCP and facilitate cross-border policy dialogue between the PRC and Mongolia; (ii) training for agricultural enterprises, farming households, and rural cooperatives to improve their use of livestock farming technology, animal disease prevention, and livestock waste management; and (iii) training for executing agency, implementing agencies, project implementing entities (PIEs), and counterpart Mongolian officials in safeguards, procurement, financial management, gender equality, and awareness of sexual exploitation and harassment.

C. Project Scope





⚫ Subproject 4: SMEs in Cross Border Businesses Expansion in IMAR. ⚫ Subproject 5: Project Management and Institutional Capacity Strengthening

121 More details of project information on each subproject are provided as follows:

Subproject 1: Inner Mongolia Sustainable Cross-Border Development Investment Program in Erenhot.

122 Erenhot is a county-level city of the Xilin Gol League in Inner Mongolia Autonomous Region (IMAR). It is located in the Gobi Desert along the PRC-Mongolian border, across from the Mongolian town of Zamyn-Uud. The Erenhot highway towards the port at the border has been operated since 1992, but it has been used for both passenger and goods transport. The infrastructure and inspection conditions of the port area have been outdated since then. To modernize the Erenhot highway port, the IMAR government carried out expansion works on the highway in July 2000, which greatly improved the efficiency of custom clearance in the port. An agreement was signed on 4 June 2019 between the PRC and Mongolia for constructing the

https://en.wikipedia.org/wiki/Mongolia

40

Erenhot-Zamyn Uud Economic Cooperation Zone (ECZ) near the border.13 Based on the agreement, both sides will further (i) promote the economic cooperations between the PRC and Mongolia; (ii) facilitate the trade, investment and personnel exchanges; (iii) push ahead industrial cooperation between the two countries; (iv) accelerate the regional development of border areas of the two countries; and (v) enhance the economic and social benefits to the border areas and people of the two countries.

123 The purpose of Subproject 1 is to establish an inspection area in the PRC-Mongolian Erenhot-Zamyn Uud ECZ, and improve the living conditions of residents in local port areas and in towns on the Mongolian side of the border. This subproject includes the following five components:

vi. Component 1: Inspection Area Construction for the PRC-Mongolian Erenhot-Zamyn Uud ECZ, including (1) construction of the inspection area; and (2) establishment of a smart port management platform; (3) construction of a cross border economic cooperation center; (4) establishment of a fencing, alarming and monitoring system in the ECZ; and (5) construction of a heating pipeline network using clean energy in the ECZ;

vii. Component 2: Ecological Restoration for the PRC-Mongolian Erenhot-Zamyn Uud ECZ, including (1) construction of a ecological protection greenbelt along the central axis, which includes reclaimed water storage, irrigation facilities and landscape lighting; and (2) construction of a ecological protection greenbelt along roadsides, including reclaimed water storage and irrigation facilities;

viii. Component 3: Waste Collection and Transfer Stations, and Sanitation Intelligent Cloud Platform for the ECZ, including (1) construction of one waste collection and transfer station; (2) procurement of supporting facilities/equipment; and (3) establishment of a sanitation intelligent cloud platform;

ix. Component 4: Upgrading Medical Equipment for the Erenhot International Traditional Chinese and Mongolia Medicine Hospital (PRC-Mongolia International Hospital in Erenhot), including the procurement of 50 sets of medical equipment and facilities;

x. Component 5: Institutional capacity building and strengthening.

124 The Erenhot Municipal Government (EMG) is the implementing agency for this subproject. The Erenhot municipal project management office (EPMO) has been established under the Erenhot DRC to carry out the overall coordination and supervision of subproject preparation and implementation at its level. Erenhot Yixin Urban & Rural Development and Construction and Asset Management Co., Ltd (Yixin) has been assigned to act as the PIE for Subproject 1. A project implementing unit (PIU) has been established inside the PIE to carry out the daily implementation of this subproject.

The Detailed information on Subproject 1: Inner Mongolia Sustainable Cross-Border Development Investment Program in Erenhot are summarized in

13 http://english.mofcom.gov.cn/article/newsrelease/significantnews/201906/20190602870682.shtml.

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125 Table III-1.

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Table III-1: Summary of Each Component of Subproject 1 No. Item Amount Unit Remarks

a) Inspection Area Construction for the PRC-Mongolian Erenhot-Zamyn Uud ECZ

a.1. Construction of inspection area 1. Joint inspection building 26,877 m2 2. Inspection center 4,000 m2 3. Supporting service building 2,000 m2 4. Road hardening 294,300 m2 5. Greening area 110,550 m2 6. Fence 4,800 m2

a.2. Establishment of smart port management platform

1. Border immigration inspection and examine system, information equipment and facilities

14 Set

2. Customs inspection and examine system, information equipment and facilities

11 Set

3. One-stop inspection passenger channels for border and customs inspection

10 Channel 5 for entry and 5 for exit

4. One-stop inspection freight channels for border and customs inspection

12 Channel 6 for entry and 6 for exit

a.3. Construction of PRC-Mongolian Regional Cooperation Center

5. PRC-Mongolian Regional Cooperation Centre

20,000 m2 Floor area

6. Greening 7,560 m2 7. Parking lots 4,550 m2 8. Road hardening 18,000 m2 9. Fencing wall 458 m

a.4. Fencing, alarming and monitoring system in PRC-Mongolian ECZ

1. Fence and alarm monitoring system in PRC-Mongolian ECZ

13.5 km

2. Alarming system and installation 2 Set Equipment 3. Monitoring system and installation 2 Set 4. Wrought iron fence and installation 4,500 Piece

a.5. Clean energy heating and pipe network for the PRC-Mongolian ECZ 1. Electrode boiler 2 No. Capacity: 4 MW

2. Thermal storage tank (hot water, including water distributor)

1 No. 2,270 m3, with a total thermal storage capacity of 72,000 kWh

3. Heating supply station 1638 m2 Height: 4.5 m

4. Electricity supply, other associated equipment and automatic control system

Multiple Set

5. Welded steel pipes DN450 1,290 m Heating supply pipelines 6. Welded steel pipes DN500 1,324 m Heating supply pipelines 7. Welded steel pipes DN600 3,080 m Heating supply pipelines 8. Welded steel pipes DN700 2,564 m Heating supply pipelines 9. Welded steel pipes DN800 1,054 m Heating supply pipelines

b) Ecological Restoration for the PRC-Mongolian Erenhot-Zamyn Uud ECZ

1. Green belt along the central axis, reclaimed water storage and irrigation facilities, and landscape lighting

20.5 ha

2. Green belt along the roadsides, reclaimed water storage and irrigation facilities

15 ha

c) Waste Collection and Transfer Stations, and Intelligent Cloud Platform for the ECZ

1. A waste compression and transfer station 320 m2 Floor area. Daily capacity: 18.2 ton/d

2. Vertical compression equipment 1 Set Compressing capacity: 60t/d

3. Video surveillance system 1 Set 4. Deodorization system 1 Set 5. High-pressure cleaner 1 Set 6. Central control system 1 Set

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No. Item Amount Unit Remarks

7. Sanitation intelligent cloud platform service system

1 Set

8. Cleaning tools and facilities 78 Set Besom, shovel, reflective vests, etc.

9. Garbage bin 150 No. 240 L 10. Intelligent garbage classification dustbin 5 No. 6 m3 11. Side-loader waste collection vehicle 3 No. Capacity: 3 tons 12. Cargo for transporting recyclable waste 2 No. Capacity: 1.7 tons

d) Medical equipment upgrading for the Erenhot International Traditional Chinese and Mongolian Medicine Hospital

1. Radiology medical equipment 5 Set 5 pieces 2. Function section equipment 6 Set 7 pieces 3. Laboratory equipment 5 Set 5 pieces 4. Surgery/ Anesthesiology equipment 3 Set 4 pieces 5. Plastic surgery equipment 4 Set 4 pieces 6. Ophthalmology equipment 6 Set 6 pieces 7. Otolaryngology equipment 3 Set 3 pieces 8. Internal Medicine 9 Set 30 pieces 9. Pediatrics equipment 7 Set 19 pieces 10. Equipment for the First Aid Center 1 Set 2 pieces 11. Equipment for the disinfecting supply room 1 Set 1 pieces

Source: IPMO, August 2019.

Figure III-1: Locations of Project Components in Subproject 1 at Erenhot Source: TRTA consultants

44

Subproject 2: Inner Mongolia Sustainable Cross-Border Development Investment Program in Mandula Port.

126 Located in Damaoqi Banner (county) in Baotou Municipality, Mandula Highway Port has been established since 1992. As the only inland port opened all year round in the Midwest IMAR, Mandula Port plays an important role in the country’s Belt and Road Initiative, especially in trade with Mongolia and Russia.

127 The purpose of this subproject is to upgrade the Mandula Port International Highway Logistics Park, improving the connectivity in border areas and enhance the service capacity to promote trade. This subproject includes four components as follows:

i. Component 1: Expansion of port freight passage roads;

ii. Component 2: Construction of service area (including parking lots, service building, hotel, restautants, stores, related supporting equipment and facilities, vehicle repairing center and boiler room etc) in the International Highway Logistic Park;

iii. Component 3: Construction of customs supervision center (including enclosed warehouse for automatic coal loading and storage and office building etc) in the International Highway Logistic Park; and

iv. Component 4: Institutional capacity building and strengthening.

128 The Baotou Municipal Government (BMG) is the implementing agency (IA) for this subproject. The Baotou municipal project management office (BPMO) is yet to be established under the Baotou DRC to carry out the overall coordination and supervision of subproject preparation and implementation at its level. Damaoqi Pine Boolean Property Service Co., Ltd (Songbuer) has been assigned to act as the PIE for Subproject 2.. The detailed information on Subproject 2: Inner Mongolia Sustainable Cross-Border Development Investment Program in Mandula Port are summarized in Table III-2.


a) Expansion of Port Freight Passage Roads

1. Freight passage roads 6.14 km Two-way four-lane 2. Pipe road crossing 12 No. 3. Greening 13,513 m2

4. Other associated facilities Multiple Set Traffic marking, fence, electronic monitoring, etc.

b) Construction of service area

1. Land area 20.94 ha 2. Floor area 10,689 m2 3. Parking lots 1,181 No.

4. Service building (4 floors), including hotel, restaurants, stores and related supporting equipment and facilities.

8,679 m2 Floor area

5. Vehicle repairing center (single floor with a 15m chimney)

1,860 m2 Floor area

6. Boiler room (electricity-based) 150 m2

7. Other linked facilities Multiple Set Road hardening, water and heating supply, etc.

c) Construction of customs supervision center

1. Land area 29.45 ha 2. Floor area 44,770 m2 Floor area

45


3.

Enclosed warehouse for automatic coal loading and storage

40,645 m2 250,000 tons of coal storage capacity

Coal unload system NA NA

4 sets coal unload equipment, 3 conveyors and 2 coal taker equipment

Coal upload system NA NA 3 conveyors and 2 coal upload equipment

4. Office building (3 floors) 4,126 m2 Floor area Source: TRTA consultants

Figure III-2: Locations of Project Components in Subproject 2 at Mandula Source: TRTA consultants

46

Subproject 3: Establishment of Quarantine Station in Mandula Port, Upgrading of Stud Sheep Breeding Bases and Sheep Industry Comprehensive Development

129 Located in Tuyouqi County, Damaoqi County and Guyang County in Baotou, this subproject aims to increase the sheep production capacity by upgrading stud sheep breeding bases and to improve the product quality by adopting the embryo transplantation technology. The subproject will also act as a pilot poverty reduction and income generation project for small-scale herders and low-income farmers. This subproject includes the following seven components:

i. Component 1: Upgrading of stud sheep breeding bases;

ii. Component 2: Construction of a quarantine station in the Mandula Port;

iii. Component 3: Upgrading of five sheep farming bases;

iv. Component 4: Establishment of a product tracing and management system;

v. Component 5: Establishment of a Poverty Alleviation Program;

vi. Component 6: Construction of a sheep slaughtering, processing and logistic facility; and

vii. Component 7: Project management and capacity building.

130 The Baotou Municipal Government (BMG) is the implementing agency for this subproject, and Inner Mongolia Xiao Wei Yang Stock Raising Sciences and Technologies Co., Ltd (Xiaoweiyang), a private animal husbandry enterprise registered in Baotou in 2001, will be the PIE to carry out the daily implementation of this subproject. A PIU has been established inside the company to carry out the overall coordination and supervision of subproject preparation and implementation.

131 The Detailed information on Subproject 3: Establishment of Quarantine Station in Mandula Port, Upgrading of Stud Sheep Breeding Bases and Sheep Industry Comprehensive Development are summarized in Table III-3.


a) Upgrading stud sheep breeding base

1. Construction of troughs 1,472 No. 448 in stud sheep area; 1,024 in breeding area

2. Construction of straw silo 2,000 m2 3. Sheep manure storage silo 300 m2 4. Cremation kiln for dead sheep bodies 150 m2 5. Quarantine area for sick sheep 300 m2 6. Embryo transplant 47,000 No. 7. Raising cost for lambs 14,100 No. 14,100 lambs

b) Construction of quarantine station in Mandula Port 1. Construction of sheep house 13,000 m2 20 farming houses 2. Walking area fence 5,200 m2 3. Cremation kiln for dead sheep bodies 100 m2 4. Facilitated house 1,250 m2 5. Motor-pumped well and associated equipment 1 No. 6. Grass silos 720 m2 7. Roads (inside and outside of the sheep house) 43,600 m2 8. Fence around the sheep house 1,500 m

9. Environmental protection facilities – seepage proofing

3,000 m2

10. Wastewater treatment facilities 1 Set

47


11. Dead sheep safety landfill wells 1 Set

c) Upgrading five sheep farming bases

C.1 No. 1 sheep farming base (247 mu 14) 1. Renovation of management house 532.8 m2 2. Renovation of the rooftop of sheep house 7,798 m2 3. Walking area 3,936 m 4. Renovation of wall 5,664 m2 5. Renovation of waste discharge pipeline 7 km 6. Main road renovation 4,000 m2 7. Side road renovation 12,073 m2 8. Fencing wall 600 lm Linear meter 9. Greening 2,500 m2

10. Other facilitated renovation, including electricity and water supply

7,273 m2

11. Seepage proofing engineering 36,000 m2 12. Wastewater treatment facilities 1 Set

C.2 No. 2 sheep farming base (278 mu) 1. Renovation of management house 266.4 m2 2. Renovation of ground in the sheep house 4,320 m2 3. Renovation of the rooftop of sheep house 6,126 m2 4. Walking area 5,040 m 5. Renovation of wall 3,420 m2 6. Renovation of waste discharge pipeline 5,640 km 7. Road renovation (main roads and side roads) 13,784 m2 8. Fencing wall 598 lm Linear meter 9. Greening 5,000 m2


7,727 m2

11. Seepage proofing engineering 18,000 m2 C.3 No. 3 sheep farming base (267 mu)

1. Renovation of management house 355.2 m2 2. Renovation of the rooftop of sheep house 4,084 m2 3. Walking area 4,160 lm Linear meter 4. Renovation of wall 2,640 m2 5. Renovation of waste discharge pipeline 5,160 km 6. Road renovation (main roads and side roads) 7,465 m2 7. Fencing wall 1,497 lm Linear meter 8. Greening 5,000 m2


7,727 m2


C.4 No. 4 sheep farming base (756 mu) 1. Renovation of management house 902 m2

2. Renovation of the fence around walking area in sheep house

1,320 lm Linear meter

3. Renovation of waste discharge pipeline 16,300 km 4. Construction of drainage ditch 600 m 5. Road renovation (main roads and side roads) 12,395 m2 6. Fencing wall 2,500 lm Linear meter


7,273 m2

8. Seepage proofing engineering 72,000 m2 9. Wastewater treatment facilities 1 Set 10. Dead sheep safety landfill well 1 Set

C.5 No. 5 sheep farming base (100 mu) – Guyang County

14 15 mu = 1 ha.

48

No. Item Amount Unit Remarks 1. Renovation of management house 355.2 m2 2. Renovation of the rooftop of sheep house 4,084 m2

3. Renovation of the fence around the walking area and troughs in sheep house

2,080 lm Linear meter

4. Renovation of wall 2,640 m2 5. Road renovation (main roads and side roads) 1,800 m2

6. Other facilitated renovation, including electricity supply

6,364 m2


9. Dead sheep safety landfill well 1 Set

d) Establishment of products tracing and management system 1. Network devices 40 Set 2. Video surveillance equipment Multiple Set 3. Big Data Center – equipment supply 8 Set

4. Associated equipment for the sheep farming bases

Multiple Set

5. Associated equipment for the mutton processing base

Multiple Set

6. Associated equipment for the marketing system Multiple Set

e) Establishment of a Poverty Alleviation Plan

1. Government + Company + Scaled Farming HHs + Poverty HHs

100 CNY

million

2,000 poverty HHs, 25 scaled farmer HHs/cooperatives

f) Construction of sheep slaughtering, processing and logistic park in Tuyouqi County

1. Small stock area 230 m2 2. Slaughtering area 6,988 m2 3. Refrigerator unit 1 Set 4. Thermal insulation system 1 Set 5. R&D and office building 2,400 m2 6. Storage room 331.5 m2 7. Wastewater treatment workshop 128 m2 8. Boiler room 274 m2 9. Fire control room 165 m2 10. Parking lots 102 m2 11. Road hardening 20,000 m2 12. Sheep slaughtering and cutting line 1 Set 13. Mutton processing and production line 1 Set

14. Refrigerator 1,550 m2

g) Project management and capacity building

G.1 Project management 1. Training to PIU staff – project management 175 PD Person·day 2. Recruitment of additional staff in PIU 5 Person

G.2 Capacity building 1. Recruitment of new staff in the Company 279 Person 2. Training to staff on the application of EIS system 6,975 PD Person·day

3. Training to farmers on the quality and safety management during the production

16,000 PD Person·day

4. Training to farmers on the application of EIS system

5,000 PD Person·day

Source: IPMO, August 2019.

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Figure III-3: Locations of Project Components in Subproject 3 at Baotou Source: TRTA consultants

Subproject 4: SMEs in Cross Border Businesses Expansion in IMAR

132 Many of the SMEs in the border areas of the PRC and Mongolia are confronted with difficulties in accessing financing, which has been a main constraint for growing and improving their businesses. The SME financing component under Tranche 1 of the Investment Program will provide financing to selected SMEs in Inner Mongolia Autonomous Region (IMAR), especially in Alxa, Bayannur, Baotou, Erenhot, and Xiang’an municipalities, through financial intermediaries (FIs) by using the FIL modality. The financing provided is expected to enable the qualified SMEs to gain access to competitively priced, medium to long term loans in order to fund their value addition businesses and increase the profitability of their businesses. The financing will also help increase the productivity of the cities and counties in which the SMEs operate. The first tranche loan for the SME financing is at the amount of €18.20 million (equivalent to $20.00 million).

133 A number of measures have been adopted in designing this subproject to address the financing barriers for SMEs in the border areas. Accordingly, the FIL modality was chosen to (i) allow multiple rollovers of the ADB loan to provide larger investments for SMEs over the loan tenor; (ii) build knowledge and capacity of the IMAR government and domestic financial institutions in risk assessment and management of the SME lending; (iii) reduce transactional complexities and costs by gaining familiarity and experience by both the IPMO and financial intermediaries through the subproject implementation; and (iv) enhance the governance and

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safeguard compliance for the SME investments beyond the first tranche investment subprojects.

134 For the FIs in Tranche 1, BOIM and other FIs to be selected during the implementation period. The FIL will be used to finance SMEs in cross border trade in the sectors of agribusiness, logistics, manufacturing, and border tourism in IMAR. An ESMS document is prepared for the FIs in accordance with ADB SPS 2009. This ESMS will be maintained and implemented by FIs as part of the overall management system to comply with the relevant PRC laws/regulations and ADB SPS 2009 requirements. The ESMS will be applied to all the subprojects supported by the FIs using (i) the ADB loan proceeds in the initial batch of subprojects; and (ii) the revolving fund established with reflows from the initial batch of subprojects.

Subproject 5: Institutional capacity building and strengthening

135 According to the due diligence and assessment carried out by the TRTA team, the Tranche 1 project has “substantial” risk in financial management due to the lack of familiarity with ADB financial management, disbursement procedures and requirements by the implementing agencies and PIEs. The procurement risk assessment concluded that the Tranche 1 project has a “medium” risk rating due to the lack of familiarity with ADB’s procurement requirements.

136 The institutional capacity assessment also indicates that the implementing agencies and PIEs lack the ADB project experiences and are short in proper staff who are the familiar with the ADB procedures and requirements. Mitigation measures that will be taken to address such risks include, but are not limited to: (1) recruit project implementation consultants (PICs) to facilitate the project implementation; (2) provide extensive training, workshop and seminars to strengthen the project management and institutional capacity; (3) engage a procurement agency with good English skills and proper experiences in World Bank/ADB financed projects; and (4) recruit qualified professional staff in the PIEs to improve human resources capacity, including financial accountant, procurement staff and engineers.

D. Due Diligence for Associated and Existing Facilities

137 Associated facilities are those which are not funded by the project but whose viability and existence depend exclusively on the project and whose operation and services are essential for successful operation of the project (SPS 2009: 31). Existing facilities are those facilities which already exist or are under construction which the project may be involved or linked with in some way (SPS 2009: 67).

138 Associated facilities. There is one associated facility for the project: Erenhot WWTP will provide reclaimed water as landscape water for the component 3. The Erenhot WWTP has a reclaimed water supply capacity of 12,500 m3/d. The treatment process of Erenhot WWTP is anaerobic-oxic process with a waste water treatment capacity of 15,000 m3/d and reclaimed water supply capacity of 12,500 m3/d.

139 The reclaimed water of Erenhot WWTP in 2018 is presented in Table III-4.

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Table III-4: Reclaimed water flow of Erenhot WWTP in 2018

Month Monthly reclaimed water flow from the WWTP (m3)

Daily reclaimed water flow from the WWTP (m3)

Note

1. 278,170 8,973 To Tian’e lake

2. 262,170 8,739 To Tian’e lake

3. 278,245 8,976 To Tian’e lake

4. 270,530 9,018 To Tian’e lake

5. 243,722 7,862 Used as landscape water





10. 277,203 8,942 To Tian’e lake

11. 286,630 9,554 To Tian’e lake

12. 323,256 10,428 To Tian’e lake

Total 3,333,805

Source: TRTA consultants

140 The reclaimed water will be mainly used as landscape water in Spring and Summer (from May to October). In Autumn and Winter, reclaimed water will be stored at Tian’e Lake (with a storage capacity of 2.26 million m3). If the reclaimed water is not sufficient in Spring and Summer, water in Tian’e Lake can be used as reclaimed water after treatment.

141 In 2018, total reclaimed water was 3.34 million m3, in which 0.5 million m3 was evaporated, 1.25 million m3 was used as landscape water, 1.22 million m3 was used in nursery garden and the unused reclaimed water was 0.42 million m3.

142 The estimated reclaimed water consumption of subproject 1 was 28,281.24 m3 per year. The reclaimed water supply capacity can meet the demand of subproject 1. Besides, the Erenhot WWP has an expansion plan and the estimated capacity will be 25,000 m3/d in 2025.

143 Existing facilities. The 5 farming bases to be reconstructed, Erenhot International traditional Chinese and Mongolia Medicine Hospital and PRC-Mongolian Erenhot-Zamyn Uud ECZ are existing facilities of the subproject 1.

144 Further information on the associated and existing facilities is in Table III-5.

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Table III-5: Due Diligence for Associated and Existing Facilities

Name Date of Construction

Operational Period

Capacity EIA Approval Date

Operational Plan

Function Compliance Issues?

Link with Project

Physical Demand Can meet project demand?

Associated

Erenhot WWTP 2000 2002 12,500 m3/d

2008 Yes Erenhot City No Provide reclaimed water for component 3

189 m3/d Yes

Existing WWTP of Erenhot International traditional Chinese and Mongolian Medical Hospital

2005 2007 120 t/d 2011 Yes Erenhot EEB No

Receive wastewater from the hospital during operation

5 t/d Yes

Erenhot landfill 2005 2006 300 t/d 2007 Yes Erenhot City No

Receive domestic solid waste during construction of the project

0.2 t/d Yes

Tuyouqi County landfill

2008 2010 200 t/d 2013 Yes Tuyouqi County

No


250 kg/d Yes

Damaoqi County landfill

2014 2016 200 t/d 2018 Yes Damaoqi County

No


30 kg/d Yes

Guyang County landfill

2008 2010 200 t/d 2012 Yes Guyang county No


34 kg/d Yes


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145 PRC-Mongolian Erenhot-Zamyn Uud ECZ is a new ECZ and the master plan is under preparation now and construction of this ECZ has not started yet. An environmental audit of Erenhot-Zamyn Uud ECZ is conducted and presented below.

146 The environmental audit was conducted by the TRTA Consultants, based on the information provided by the PIE of the Erenhot Project, Erenhot DRC, together with available public information and a site visit. The site visit was undertaken at April 2019.

147 Erenhot-Zamyn Uud ECZ are located at both PRC and Mongolia. The area in Erenhot City is 9.03 km2 while in Zamyn Uud is 9 km2. The key sectors in the ECZ will be international logistic industry, manufacturing industry, high technology industry, cross-border tourism and emerging service industry15.

Figure III-4: General Plan of Erenhot-Zamyn Uud ECZ (2019-2035) Source: Domestic FSR, 2019

148 Erenhot-Zamyn Uud ECZ is located at both PRC and Mongolia. The area covers a total

15 Emerging service industry includes financial service, modern logistics, technology research and development, business service, information service, exhibition service, Leisure tourism, health industry etc.

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area of 18.03 km2 of which the Chinese side covers 9.03 km2 and the Mongolian side covers 9 km2. The key sectors in the ECZ will be international logistic industry, manufacturing industry, high technology industry, cross-border tourism and new service industry.

149 The Erenhot-Zamyn Uud ECZ consists of four functional zones and presented in Table III-6.

Table III-6: Industry Layout Plan of Erenhot-Zamyn Uud ECZ Function division Main industry Area (Ha)

International logistic area International logistic industry Total area: 359 ha PRC’s area: 225 ha Mongolian area: 134 ha

Production area

Import processing industry Total area: 655 ha PRC’s area:272 ha Mongolian area: 383 ha

Export processing industry Import and export processing industries High technology industry

Cross-border tourism area Cross-border tourism Total area: 336 ha PRC’s area:177 ha Mongolian area: 159 ha

Free border trade cooperation area

New service industry Total area: 433 ha PRC’s area: 229 ha Mongolian area: 204 ha


150 The Erenhot-Zamyn Uud ECZ consists of four functional zones and the general plan is presented in Figure III-5.

Figure III-5: General Plan of Erenhot-Zamyn Uud ECZ at PRC side (2019-2035) Source: Domestic FSR, 2019.

151 The short-term and long-term development goals are presented below:

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152 By 2025, three industry clusters including international logistic industry, import and export processing industries and modern service industry will be initially formed as the functional extension zone. During this period, the industrial output value of the park will reach 5 billion CNY.

153 By 2035, main industries including international logistic industry, manufacturing industry, high technology industry, cross-border tourism and new service industry in ECZ will be well developed. During this period, the industrial output value of the park will reach 17 billion CNY.

154 According to the PRC Law on EIA, an EIA report for Erenhot-Zamyn Uud ECZ will be prepared and submitted to the EEB for approval. Any construction or modification works in the ECZ is not permitted to commence unless an approval of the EIA from the EBB is obtained.

155 Now the management committee of Erenhot-Zamyn Uud ECZ has not been established. One of the committee’s responsibilities is to administer the ECZ on such activities and issues as planning, construction, land use, financing, personnel recruitment, social safeguard, environmental protection, public health and production safety.

156 The ECZ management committee also provides support to the IMAR EED and Erenhot EEB in environmental impact assessment, environmental monitoring, construction supervision, enforcement of environmental laws and regulations and emergency response procedures.

157 Overall, the ECZ management committee will have sufficient capacities to manage the ECZ and environmental issues in ECZ.

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IV. DESCRIPTION OF THE ENVIRONMENT

A. Location and Physical Setting

158 The Tranche 1 subprojects will be implemented in Erenhot Municipality and Baotou Municipality (with subcomponents at Damaoqi County, Tuyouqi County and Guyang County of Baotou Municipality). Locations of the subprojects are presented in Figure III-1 to Figure III-3, respectively.

1. OVERVIEW

a. Erenhot

159 Erenhot is a county-level city of the Xilinguole City, in IMAR, located in the Gobi Desert along the Sino-Mongolian border, across from the Mongolian town of Zamyn-Üüd. Erenhot City is located at 111°17′-112°25′ east longitude and 42°55′-43°53′ north latitude. It is located in the central part of Inner Mongolia Plateau, northwest of Xilinguole City, and adjacent to Zummen Ude City in Mongolia in the north. It boards Sunitezuoqi County in the east, boards Suniteyouqi County in the west and south. ErenhotCity is 390km away from Hohhot, the capital of the IMAR, 330km away from Xilinhot, the capatial of Xilinguole City, 714km away from Ulaanbaatar, the capital of Mongolia, 7,623km away from Moscow, the capital of Russia, and 720km away from Beijing. It is the border land port with a minimum distance to Beijing.

160 Erenhot experiences a cold desert climate (Köppen BWk) with long, very dry, and bitter winters and short, hot summers. Monthly daily average temperatures range from −18.1 °C in January to 23.3 °C in July, with an annual mean of 3.98 °C. The city receives 3,232 hours (about 73% of the possible total) of bright sunshine per year, and clear, sunny, dry weather dominates year-round; due to the aridity, the diurnal temperature variation frequently approaches and exceeds 15 °C. Over two-thirds of the sparse 142 mm of annual rainfall occurs from June to August alone. With monthly percent possible sunshine ranging from 67% in July to 78% in February, the city is one of the sunniest nationwide and receives 3,232 hours of bright sunshine annually.

b. Damaoqi County

161 Baotou Municipality is located in the central and western part of IMAR. It is the largest city by urban population in IMAR. Its geographical coordinates are 109°16'-111°26' east longitude and 40°40'-42°44' north latitude. It borders Hohhot City in the east, Mongolia in the north, Bayannur City in the west, and Erdos City across the river in the south. It is about 182 km wide from east to west and 270km long from north to south, with a total area of 27,768 km2. The Baotou municipality administrative areas are shown in Figure IV-1.

162 Damaoqi County has a monsoon-influenced, continental semi-arid climate (Köppen BSk), barely avoiding arid designation, with very cold and dry winters, hot, somewhat humid summers, and strong winds, especially in spring. The monthly 24-hour average temperature ranges from −14.5°C in January to 21.1°C in July, with the annual mean at 4.23°C. The annual precipitation is 256 mm, with more than half of it falling in July and August alone. There are 3,164 hours of bright sunshine annually, with each of the winter months having over 70% of the possible total, and this percentage falling to 58 in July.

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Figure IV-1: Baotou Municipality Administrative Divisions Source: Wiki.

163 Damaoqi County belongs to Baotou Municipality, which is located in the north of Baotou Municipality. Its geographical coordinates are 109°16′-111°25′ east longitude and 41°20′-42°40′ north latitude. The east of Damaoqi County is Siziwangqi County of Wulancabu City, the west is Wulatezhongqi County of Bayannur City, the south is Guyang County of Baotou Municipality and Wuchuang County of Hohhot City, and the north is Monoglia, with a total area of 18,177 km2.

c. Tuyouqi County

164 Tuyouqi County belongs to Baotou Municipality, which is located in the east of Baotou

Damaoqi County

Guyang County

Tuyouqi County

Donghe District

Shiguai District

Qingshan District

Jiuyuan District

Kundulun District

Baiyun Ebo Mining District

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Municipality. The County is located in the northern foot of Daqing Mountain and the southern end of the Mongolian Plateau. Its geographical coordinates are 110°14′-111°07′ east longitude and 40°14′-40°51′ north latitude. The east of Tuyouqi County is Tuzuoqi County of Hohhot City, the west is Donghe District and Shiguai District of Baoyan City, the south is Dalateqi County and Zhungeerqi County of Erdos City, and the north is Guyang County of Baotou Municipality and Wuchuang County of Hohhot City, with a total area of 2,368 km2.

165 Tuyouqi County has a monsoon-influenced, continental semi-arid climate (Köppen BSk), with very cold and dry winters, hot, somewhat humid summers, and strong winds, especially in spring. The monthly 24-hour average temperature ranges from −15.4°C in January to 22.9°C in July, with the annual mean at 7.5°C. The annual precipitation is 346 mm, with more than half of it falling in June, July and August alone. There are 3,095 hours of bright sunshine annually.

166 The annual precipitation in the county is very uneven, with a maximum annual precipitation of more than 600mm, while the minimum annual precipitation is only 131mm. The multi-year average evaporation is 6 times of the average precipitation.

167 The meteorological data of Tuyouqi County is presented in Table IV-1. The top one direction of prevailing wind was east with a frequency of 12.04%, top 2 was west with a frequency of 11.98%. Direction of prevailing wind in summer is east and in winter is west.

Table IV-1: Summary of Tuyouqi County meteorological data (1998-2017) Item Value Item Value

Annual average temperature (°C)

8.4 Annual average wind speed (m/s) 2.1

Extremely high temperature (°C)

35.4 (12 May, 2016)

No. of days with big winds 4.3

Extremely low temperature (°C)

-22.0 (25 Dec 1998)

Annual precipitation (mm) 346

Annual average pressure (hPa) 902.5 Maximum annual precipitation (mm)

608.5

Annual average relative humidity (%)

53 Sunshine hours 3,095

Annual evaporation (mm) 1917.4 Maximum depth of frozen ground (cm)

185

Source: Domestic EIA, 2019.

168 Monthly average temperature of Tuyouqi County is presented in Table IV-2.

Table IV-2: Monthly average temperature of Tuyouqi County (1998-2017) Item Jan Feb Mar Apr May Jun Jul

Temperature (°C) -4 1 15 21 27 31 31

Item Aug Sep Oct Nov Dec Year

Temperature (°C) 30 22 15 5 -2 8.4 Source: Domestic EIA, 2019.

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d. Guyang County

169 Guyang County belongs to Baotou Municipality, which is located in the north of Baotou Municipality. The county is located in the northern foot of Daqing Mountain. Its geographical coordinates are 109°40′-110°41′east longitude and 40°42′-41°08′ north latitude. The east of Guyang County is Wuchuan County of Hohhot City, the west is Wulateqianqi County and Wulatezhongqi County of Baotou Municipality, the south is Tuyouqi County and Jiuyuan District of Baotou Municipality, and the north is Damaoqi County of Baotou Municipality, with a total area of 5,332.71km2

170 Guyang County has a temperate continental climate with low temperature, low precipitation, sufficient sunshine and large temperature difference. The monthly 24-hour average temperature ranges from −15.4°C in January to 23.8°C in July, with the annual mean at 5.5°C. The annual precipitation is 291.1 mm, with 64% of it falling in June, July and August alone. There are 2,989 hours of bright sunshine annually.

171 The meteorological data of Guyang County is presented in Table IV-3.

Table IV-3: Summary of Guyang County meteorological data (1998-2017) Item Value Item Value

Annual average temperature (°C)

5.4 Annual average wind speed (m/s)

2.2

Extremely high temperature (°C)

38.6 (22 Jun, 2005)

No. of days with big winds 4.3

Extremely low temperature (°C) -33.2 (18 Jan,

1998) Annual precipitation (mm) 301.2

Annual average pressure (hPa) 864.1 Maximum annual precipitation (mm)

438.5

Annual average relative humidity (%)

51 Sunshine hours 2967.3

Annual evaporation (mm) 1917.4 Maximum depth of frozen ground (cm)

185


172 Monthly average temperature of Guyang County is presented in Table IV-4.

Table IV-4: Monthly average temperature of Guyang County (1998-2017) Item Jan Feb Mar Apr May Jun Jul

Temperature (°C) -13.5 -8.6 -1.5 7.4 14.7 19.9 22.0

Item Aug Sep Oct Nov Dec Year

Temperature (°C) 19.6 13.8 6.0 -3.9 -11.3 5.4 Source: Domestic EIA, 2019.

173 The wind speed from April to June in Guyang County is the top in the whole year. In 2017, the maximum monthly wind speed is 3.68 m/s in April, while the minimum wind speed was 1.3 m/s in January.

2. GEOGRAPHY AND TOPOGRAPHY

a. Erenhot

174 Erenhot City is located in the central plateau of Inner Mongolia and the layered plateau area north of Yinshan Mountain. The terrain is relatively flat, with a gentle slope from the southwest to the northeast. The urban area is located in the western margin of the sedimentary belt of the Erenhot Basin. The “Narenshaorong” and “Haritolgoi” in the southeast of Saiwusu are the highest, with an altitude of 1,016m. The Bulangyintuiraomu mountain near the urban

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area has a second highest elevation of 964.3m. E’rennuoer is the lowest in Erenhot with an elevation of 900m.

Source: Google map, 2019

Figure IV-2: Erenhot topography

b. Damaoqi County

175 The Damaoqi County is located in the northern foot of Daqing Mountain, in the central part of the Inner Mongolia Plateau. The terrain is high in the south and low in the north. It slopes from south to the north. The southern of the Damaoqi County is hill area, northern is soft hill area and the middle is plain. The terrain is flat and open. The average elevation is 1,376m. The highest point is the Habute Gaijisu mountain with an elevation of 1,846 m and the lowest point is Tenggenaoer with an elevation of 1,058m.

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Figure IV-3: Damaoqi County topography

c. Tuyouqi County

176 The northern part of the Tuyouqi County is the middle and western sections of the Daqing Mountain. The Jiufeng Mountain, the main peak of Daqing Mountain, is located in the northeastern part of the county with a highest altitude of 2337.8 meters in the county. The lowest altitude in the county is 1,050 meters. The southern part is the open and flat Tumochuan Plain, with an area of 1667.12 km2. The elevation of the southern part is between 987 and 1,000 meters. It slopes slightly from northwest to southeast, and the slope of the county ranges from 1:7000 to 1:8000.

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Figure IV-4: Tuyouqi County Topography

d. Guyang County

177 Guyang County is composed of the medium-low mountain with a denuded structure, the hilly area and the alluvial accumulation plain between low mountains and hills. The landform belongs to the middle and low hills, in which 40% are hills, 50% are mountains, only 10% is plain. Guyang County has an average elevation of 1,300-1,800m. The highest in the county is Chunkun Mountain with an elevation of 2,324m. The terrain of southern part of is mountainous. The northern part is relatively flat. The Danaobao Mountain goes through the county from east to west.

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Figure IV-5: Guyang County topography

3. SOIL COVER

a. Erenhot

178 The urban area is located in the western margin of the sedimentary belt of the Erenhot Basin. The basic terrain of Erenhot forms from Quaternary to Triassic and Cretaceous. The main soil types in Erenhot are light chestnut colored soil and sand gravel.

179 The main soil type in the subproject are is light chestnut colored soil.

b. Damaoqi County

180 The soil type in northern part is brown soil and southern is chestnut soil. The parent material consists of red sandstone, mudstone and gravel of the Tertiary and Mesozoic. The parent material is covered with a thick Quaternary eluvium, and some area is covered with Aeolian sand. The soil fertility is low and the organic matter content is 1.0-1.8%, and the main nutrient content is low nitrogen, low phosphorus and high potassium, and the C/N ratio is about 9.25-9.68. Vegetation type is desert steppe vegetation.

181 The main soil type in the subproject area is light chestnut colored soil.

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c. Tuyouqi County

182 The soil types of Tuyouqi County are divided into three soil types: gray cinnamon soil, chestnut soil and meadow soil. Gray cinnamon soil and chestnut soil are the main types, accounting for 96.9%. Gray cinnamon soil accounts for 52.6% of the total land area and is the main soil type at the mountain area; chestnut soil accounts for 44.3% and is the main soil type at the hilly area; meadow soil only accounts for 3.1% and is the main soil type at the plain area. Soil nutrients are moderately low and is lack of phosphorus and nitrogen.

183 The total land area is 3.552 million mu, including 1.45 million mu farm land, accounting for 43.5%. the forest area is 593,000 mu and the forest coverage rate is 17.3%. In addition, there are 100,000 mu of alkali land to be developed and utilized.

184 The soil types are mainly gray cinnamon soil and meadow soil, and the salt soil and wind sand soil are scattered throughout. Nitrogen, phosphorus and potassium in the soil are high, therefore the soil is suitable for various crops growth.

185 The main soli type at the subproject area is gray cinnamon soil and meadow soil.

d. Guyang County

186 The soil types of Guyang County are divided into three soil types: gray cinnamon soil, chestnut soil and meadow soil. Gray cinnamon soil and chestnut soil are the main types, accounting for 96.9%. Gray cinnamon soil accounts for 52.6% of the total land area and is the main soil type at the mountain area; chestnut soil accounts for 44.3% and is the main soil type at the hilly area; meadow soil only accounts for 3.1% and is the main soil type at the plain area. Soil nutrients are moderately low and is lack of phosphorus and nitrogen.

187 The main soli type at the subproject area is meadow soil.

4. SEISMOLOGY

a. Erenhot

188 The PRC classifies seismic intensity into 12 grades under the China Seismic Intensity Table (GB/T 17742-2008), based on the severity of “shaking” of the earth surface and the extent of potential impact. According to the China Seismic Ground Motion Parameters Zoning Map (GB18306-2001, Amendment 1), the seismic intensity in the Erenhot is Grade 7, with a design peak ground acceleration of 0.10 g, a 10% probability of exceedance in 50 years, and a return period of 475 years.

b. Damaoqi County

189 According to the China Seismic Ground Motion Parameters Zoning Map (GB18306-2001, Amendment 1), the seismic intensity in the Damaoqi County is Grade 6, with a design peak ground acceleration of 0.05 g, a 10% probability of exceedance in 50 years, and a return period of 475 years.

c. Tuyouqi County

190 According to the China Seismic Ground Motion Parameters Zoning Map (GB18306-2001, Amendment 1), the seismic intensity in the Tuyouqi County is Grade 8, with a design peak ground acceleration of 0.20 g, a 10% probability of exceedance in 50 years, and a return period of 475 years.

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d. Guyang County

191 According to the China Seismic Ground Motion Parameters Zoning Map (GB18306-2001, Amendment 1), the seismic intensity in the Guyang County is Grade 7, with a design peak ground acceleration of 0.10 g, a 10% probability of exceedance in 50 years, and a return period of 475 years.

5. WATER RESOURCES

a. Erenhot

192 There are no perennial rivers in Erenhot, only some small gully at the edge of higher plains which is formed by flood in the rainy season. The small depressions at the higher plains are the sources of shallow groundwater. Surface water resources are scarce, and surface vegetation is sparse which is good for evaporation. The unevaporated water infiltrate into ground and becomes ground water.

193 Annual ground water resource in Erenhot is 17.557 million m3 and per capital average water resource in Erenhot is only 149m3, accounts for 9.5% of national level per capital

194 There are three main water resources in Erenhot: one salt lake in the east of urban area and two main ground water resources in Erenhot: Saiwusu water resource and Qiharigetu water resource.

195 Annual available water resource of Saiwusu water resource is 1.38 million m3. Because the alkalinity of the water in Saiwusu water resource is high, now the water of Saiwusu water resource is mainly used as irrigation water. In 2018, annual irrigation water consumption was 0.53 million m3.

196 Annual available water resource of Qiharigetu water resource is 10.887 million m3 and the water of Qiharigetu water resource is mainly used as domestic water. Qiharigetu water resource can provide 6.695 million m3 to Erenhot annually. In 2018, annual domestic water consumption in Erenhot was 5.512 million m3.

197 Annual available water resource of the saline lake is 7.4825 million m3. Because the salinity of the water in the saline lake is high, now the saline lake mainly provided industrial water to three mining companies.

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Figure IV-6: Water Resources in Erenhot Source: Domestic EIA, 2019.

b. Damaoqi County

198 Damaoqi County has six water systems: Tenggenaoer, Ulannaoer, Saidabusu, Halanaoer, Huhenaoer and Tugumunaoer. The total area of the rivers is 6800km2, and there are 9 main rivers with a total length of 742.6km. The Aibugai River is the longest river with a total length of 154km and is injected into Tenggenaoer River. Other major rivers include the Taerhun River, the Chaganbula River, the Kailing River, the Wulansumu River, the Tabu River, the Taolaitu River, the Wulanyigeng River, the Aguqigaole River, the Zhadagai River, etc. The total drainage area is 13,938 km2. The south of Bailingmiao Town is the runoff area and the main lakes in this area are Tengenaoer, Harinaoer, and Saidabusu. The river network density is about 0.8km/km2, and the daily average runoff is 1.5 million m3.

199 Annual average water resource in Damaoqi County is 91.27 million m3 (ground water is 75.54 million m3 and surface water is 15.73 million m3).

200 The Mandula port and Mandula town has a water supply project with a capacity of 5,500 m3/d (Mandula Port:1,500 m3/d; Mandula town: 4,500 m3/d). The project is located at Southwest of Mandula port with a distance about 5km.

Salt lake

Reclaimed water

treatment plant

Qiharigetu

Saiwusu

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c. Tuyouqi County

201 The Yellow River enters Tuyouqi County at the west of Liwuying Village, Daxicheng Village and traverses the southern edge of Tuyouqi County, then leaves at the southeast of Baliwan Village. The Yellow River section in Tuyouqi County has a length of 106 km and width of 0.2-0.95 km, has a drainage area of 2,656 km2 and the annual average runoff is 24.756 billion m3. In addition, there are 21 ravines with a drainage area more than 20 km2, such as the Meidaigou and Shuijiangou. Water in the 21 ravines accounts for 11.5% of the surface water resource.

202 Tuyouqi County is rich in ground water. Annual average water resource in Tuyouqi County is 276 million m3 (ground water is 228 million m3 and surface water is 48 million m3). Available shallow groundwater resource is 105 million m3.

d. Guyang County

203 There are 7 small rivers namely Kundulun River, Wusutule River, Wudanggou River, Meidaigou River and Shuijiangou River which belong to the Yellow River system and Aibugai River and Tabu River which are inland rivers. The Tabu River originated in Wuchuan County, and the other six rivers originated from the county. The seven rivers are all seasonal rivers, and the river water is supplied by precipitation.

204 Annual average water resource in Guyang County is 201 million m3 (ground water is 143 million m3 and surface water is 58 million m3).

B. Environmental Quality

1. Noise

a. Erenhot

205 In 2018, the annual average 12-hour daytime noise level was 53.8 dB(A) while the 12-hour nighttime noise level was 49.7 dB(A), which complies with the Class II standard of

Environmental Quality Standard for Noise (GB3096－2008).

b. Damaoqi County

206 Noise monitoring was conducted at the boundaries of the project subcomponents. The monitoring was carried out at over a 24-hour period on July 5, 2019. Weather conditions were sunny and cloudless with wind speed less than 5.0 m/s, which meet relevant PRC meteorological requirements for noise monitoring.

207 Monitoring was undertaken with HS 6298 and Aiwa AWA6218 multi-functional ambient noise detectors. Monitoring at the plant site boundaries was undertaken in accordance with the relevant requirements in PRC Noise Standards for Industrial Enterprises at Site Boundary (GB12348-2008). Noise monitoring at adjacent sensitive sites was undertaken in accordance with the relevant requirements in PRC Environmental Quality Standards for Noise (GB3096-2008). Figure IV-7 presents the location of the monitoring points (site boundaries). Table IV-5 presents the monitoring results.

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Source: Domestic EIA, 2019

Figure IV-7: Noise Monitoring Location

Table IV-5: Monitoring Results of Noise at Site Boundaries (unit: Leq dB(A))

No. Location Monitoring results Standard

Daytime Nighttime Daytime Nighttime

1 East boundary of logistics park 51.6 41.7 60 50 2 South boundary of logistics park 50.7 41.8 60 50 3 West boundary of logistics park 51.3 40.9 60 50 4 North boundary of logistics park 50.8 41.3 60 50

5 East boundary of customs

supervision place 51.2 42 60 50

6 South boundary of customs

supervision place 51.7 41.8 60 50

7 West boundary of customs


8 North boundary of customs


9 Start point of Mandula Port Freight Passage (five for entry and five for

exit) road expansion project 51.6 41.6 60 50


Legend

Component site

Monitoring points

N

N

N

N

NN

N

N

N

69

c. Tuyouqi County

208 Noise monitoring was conducted at the boundaries of the project subcomponents. The results are presented in Table IV-6.




1 East boundary of No.1-4 farming bases 50.9-53.3 42.8-46.7 60 50 2 South boundary of No.1-4 farming bases 49.8-52.3 42.3-45.9 60 50 3 West boundary of No.1-4 farming bases 47.9-52.1 40.9-46.2 60 50 4 North boundary of No.1-4 farming bases 46.7-50.3 41.1-46.8 60 50


d. Guyang County

209 Noise monitoring was conducted at the boundaries of the project subcomponents. The results are presented in Table IV-7.




1 East boundary 51.2 40.9 60 50 2 South boundary 50.6 39.8 60 50 3 West boundary 50.7 41.5 60 50 4 North boundary 49.8 42.0 60 50


2. Air Quality

a. Erenhot

210 In 2018, Erenhot has ambient monitoring results for 365 days, in which, 222 days had an Air Quality Index (AQI) below than 50, 93 days had an AQI between 51 and 100, 34 days had an AQI between 101 and 150, 2 days had an AQI between 151 and 200 and 10 days had an AQI between 201 and 300.

211 Monthly average concentration of SO2 in 2018 was 17 μg/m3 and monthly concentrations of SO2 is 2-90 μg/m3 which can meet the PRC’s class II standard. Monthly average concentration of NO2 in 2018 was 15 μg/m3 and monthly concentrations of NO2 is 1-199 μg/m3 in which only 1 day exceeded the PRC’s class II standard.

212 The monthly average concentration of PM10 in 2018 was 84 μg/m3 and monthly concentrations of PM10 is 12-1984 μg/m3 in which 43 days exceeded the PRC’s class II standard. The monthly average concentration of PM2.5 in 2018 was 20 μg/m3 and monthly concentrations of PM2.5 is 5-245 μg/m3 in which 10 days exceeded the PRC’s class II standard.The monthly average concentration of CO in 2018 was 1.094 μg/m3 and monthly concentrations of SO2 is 0.170-2.603 μg/m3 which can meet the PRC’s class II standard.

213 The maximum 1-hour concentration of O3 in 2018 was 104 μg/m3 and concentrations of O3 is 24-288 μg/m3 in which 13 days exceeded the PRC’s class II standard.

b. Damaoqi County

214 Based on Baotou Environment Quality Bulletin (2017), ambient quality of Damaoqi County in 2017 is presented in Table IV-8.

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Table IV-8: Ambient Air Quality in Damaoqi County in 2017 (unit: ug/m3) Pollutants Parameter Value Limit Ratio to limit Compliance or not

SO2 Annual average 11.38 60 18.97 Yes Daily average 25 150 16.67 Yes

NO2 Annual average 8.82 40 22.005 Yes Daily average 20 80 25 Yes

PM10 Annual average 50.5 70 72.14 Yes Daily average 119 150 79.33 Yes

PM2.5 Annual average 16.75 35 47.86 Yes Daily average 47.7 75 63.6 Yes

CO Annual average 0.640 4,000 16.0 Yes Daily average 1,330 4,000 33.25 Yes

O3 Annual average 99.05 160 61.91 Yes 8-hour average 78 160 48.75 Yes


215 In 2017, ambient quality of Damaoqi County can meet the Class II of National Ambient Air Quality Standard (GB3095-2012). The ambient air quality in Damaoqi was good in 2017.

216 During the domestic EIA preparation, ambient air quality monitoring was conducted at the proposed sites for the animal quarantine station subcomponent. The monitoring was undertaken continuously over a 7-day period from August 3 to 9, 2019 for parameters of CO, SO2 and NO2 (1-hour average concentrations), H2S, NH3 and odor (particular pollutants) and TSP, PM10, PM2.5, SO2 and NO2 (24-hour average concentration). The monitoring results are presented in Table IV-9.

Table IV-9: Air quality monitoring results (Unit: mg/m3)

Item 1-hour mean

concentration rage 24-hour mean

concentration rage

Exceedance of national standards, %

1-hour mean 24-hour mean

SO2 0.034 - 0.092 0.045-0.058 0 0

NO2 0.022-0.059 0.029-0.040 0 0

CO 1.0-3.7 NA 0 NA

PM2.5 NA 0.035-0.065 NA 0

PM10 NA 0.074-0.101 NA 0

TSP NA 0.125-0.224 NA 0

NH3 0.035-0.080 NA 0 NA

H2S No detection NA 0 NA

Odor No detection NA 0 NA


217 The data show that all the 24-hour averaged SO2, NO2, TSP, PM10 and PM2.5

concentrations and 1-hour averaged SO2, CO and NO2 concentrations were in compliance with the relevant PRC ambient air quality standards: Class II of Ambient Air Quality Standards (GB3095-2012). The 1-hour averaged NH3, H2S and odor concentrations were in compliance with the PRC’s Emission Standards for Odor Pollutants (GB 14554-93).

218 The monitoring results show that air quality in the component area is good.

c. Tuyouqi County

219 During the domestic EIA preparation, ambient air quality monitoring was conducted at the

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proposed sites for the four sheep breeding bases. The monitoring was undertaken continuously over a 7-day period from August 11 to 17, 2019 for the parameters of CO, SO2 and NO2 (1-hour average concentrations), H2S, NH3 and odor (particular pollutants) and TSP, PM10, PM2.5, SO2 and NO2 (24-hour average concentration). The monitoring results are presented in Table IV-10.


Item 1-hour mean


concentration rage



SO2 0.025 - 0.087 0.045-0.058 0 0

NO2 0.018-0.068 0.032-0.048 0 0

CO 0.9-2.6 NA 0 NA

PM2.5 NA 0.028-0.053 NA 0

PM10 NA 0.052-0.089 NA 0

TSP NA 0.089-0.163 NA 0

NH3 0.023-0.068 NA 0 NA





concentrations and 1-hour averaged SO2, CO and NO2 concentrations were in compliance with the relevant PRC ambient air quality standard: Class II of Ambient Air Quality Standards (GB3095-2012). The 1-hour averaged NH3, H2S and odor concentrations were in compliance with PRC’s Emission Standards for Odor Pollutants (GB 14554-93).

221 The results show that air quality in the component areas is good.

d. Guyang County

222 Based on Baotou Environment Quality Bulletin (2017), the ambient quality of Guyang County monitored in 2017 is presented in Table IV-11.

Table IV-11: Ambient Air Quality in Guyang County in 2017 (unit: ug/m3)

Pollutants Parameter Value Limit Ratio to limit (%) Compliance or not

SO2 Annual average 23 60 38.3 Yes NO2 Annual average 24 40 60.0 Yes PM10 Annual average 92 70 131.4 No PM2.5 Annual average 34 35 97.1 Yes CO Daily average 2,100 4,000 52.5 Yes O3 8-hour average 153 160 95.6 Yes


223 In 2017, the ambient quality of Guyang County except for PM10 met the Class II of National Ambient Air Quality Standard (GB3095-2012). The ambient air quality in Damaoqi was good in 2017 in general. The main reason for the exceedance of PM10 was a big local sand storm that occurred in Spring.

224 During the domestic EIA preparation, ambient air quality monitoring was conducted at the

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proposed sites for the No.5 sheep breeding base. The monitoring was undertaken continuously over a 7-day period from August 19 to 25, 2019 for the parameters of CO, SO2 and NO2 (1-hour average concentrations), H2S, NH3 and odor (particular pollutants) and TSP, PM10, PM2.5, SO2 and NO2 (24-hour average concentration). The monitoring results are presented in Table IV-12.


Item 1-hour mean


concentration rage



SO2 0.030 - 0.077 0.034-0.048 0 0

NO2 0.021-0.056 0.028-0.052 0 0

CO 1.5-3.0 NA 0 NA

PM2.5 NA 0.033-0.049 NA 0

PM10 NA 0.043-0.078 NA 0

TSP NA 0.072-0.158 NA 0

NH3 0.040-0.092 NA 0 NA





concentrations and 1-hour averaged SO2, CO and NO2 concentrations were in compliance with the relevant PRC ambient air quality standard: Class II of Ambient Air Quality Standards (GB3095-2012). The 1-hour averaged NH3, H2S and odor concentrations were in compliance with PRC’s Emission Standards for Odor Pollutants (GB 14554-93).

226 The results show that air quality in the component areas is good.

3. Surface water quality

a. Erenhot

227 There are no surface rivers in Erenhot.

b. Damaoqi County

228 There are no surface rivers in a radius of 10km from Subproject 2 and the animal quarantine station.

c. Tuyouqi County

229 The nearest surface water body of the 4 breeding bases is Shuijiangou River, which is about 8km away from the project site. During the domestic EIA preparation, surface water quality monitoring was conducted, and the monitoring results are presented in Table IV-13.

Table IV-13: Surface water quality monitoring results Parameter Unit Results Limit

pH NA 7.3 6 ~ 9 Dissolved oxygen (DO) mg/L 7.5 ≥5 Permanganate index () NA 3.5 ≤6

Chemical oxygen demand (COD) mg/L 15.1 ≤20

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Parameter Unit Results Limit 5-day biochemical oxygen demand (BOD5) mg/L 1.9 ≤4

Ammonia nitrogen (NH3-N) mg/L 0.22 ≤1.0 Total phosphorus (as P) mg/L 0.09 ≤0.2

Total nitrogen (lakes, reservoirs, as N) mg/L 0.45 ≤1.0 Copper (Cu) mg/L 0.02 ≤1.0

Zinc (Zn) mg/L 0.03 ≤1.0 Fluoride (as F-) mg/L 0.004 ≤1.0 Selenium (Se) mg/L 0.0003 ≤0.01 Arsenic (As) mg/L 0.0002 ≤0.05 Mercury (Hg) mg/L ND ≤0.0001

Cadmium (Cd) mg/L ND ≤0.005 Chromium (Cr, hexavalent) mg/L ND ≤0.05

Lead (Pb) mg/L ND ≤0.05 Cyanide (CN) mg/L ND ≤0.2 Volatile phenol mg/L ND ≤0.005

Total petroleum hydrocarbon (TPH) mg/L 0.003 ≤0.05 Anionic surfactant mg/L 0.02 ≤0.2

Sulfide mg/L 0.005 ≤0.2 Fecal coliform bacteria no./L 352 ≤10000

Note: ND means no detection. Source: Domestic EIA, 2019.

230 The results show that surface water quality near the four sheep breeding bases is good.

d. Guyang County

231 There are no surface waterbodies in a radius of 10km from the No.5 breeding base.

4. Ground water quality.

e. Erenhot

232 In 2018, the Erenhot EEB carried out monthly ground water monitoring at the Qiharigetu water resource. The concentrations of sulfate, fluoride and total hardness exceeded the Class III standards for Underground Water Quality (GB/T 14848－2017). The results are presented

in Table IV-14.

Table IV-14: Monthly ground water monitoring results of 2018 unit: mg/L Month Parameter exceeds the

Class III standard Monitoring results

January Fluoride 1.4

February Fluoride 1.41 Sulfate 250.2

March Fluoride 1.30 Sulfate 315.6

Total hardness 515

April Fluoride 1.35 Sulfate 310

Total hardness 521

May Fluoride 1.5 Sulfate 318

Total hardness 509

June Fluoride 1.32 Sulfate 308

Total hardness 543 July Fluoride 1.5

August Fluoride 1.39 Sulfate 306

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Total hardness 509

September Fluoride 1.39 Sulfate 290

Total hardness 478 October Fluoride 1.38

November Fluoride 1.54 December Fluoride 1.48


f. Damaoqi County

233 During the domestic EIA preparation, ground water quality monitoring was conducted near the subproject 2 location and animal quarantine station. Three ground water samples were taken (one is for Component 1, one is for Components 2 and 3, and the other one is for the animal quarantine station). The monitoring results are presented in Table IV-15.

Table IV-15: Ground water quality monitoring results

Parameter Unit Results Limit

Color HU 5-8 ≤15 Odor and taste --- none none

Turbidity NTU 1.3-1.8 ≤3 Visible object --- none none

pH --- 6.9~7.8 6.5~8.5 Total hardness (as CaCO3) mg/L 121-168 ≤450 Total dissolved solid (TDS) mg/L 326-621 ≤1000

Sulfate (SO42-) mg/L 105-188 ≤250

Chloride (Cl-) mg/L 59-123 ≤250 Iron (Fe) mg/L 0.005-0.008 ≤0.3

Manganese (Mn) mg/L 0.012-0.035 ≤0.1 Copper (Cu) mg/L 0.018-0.045 ≤1.0

Zinc (Zn) mg/L 0.021-0.031 ≤1.0 Molybdenum (Mo) mg/L ND ≤0.1

Cobalt (Co) mg/L ND ≤0.05 Volatile phenol mg/L ND ≤0.002

Anionic surfactant mg/L 0.03-0.08 ≤0.3 Permanganate index (IMn) mg/L 1.1-1.9 ≤3.0

Nitrate (NO3-, as N) mg/L 5.0-7.8 ≤20

Nitrite (NO2-, as N) mg/L 0.005-0.009 ≤0.02

Ammonia nitrogen (NH3-N) mg/L 0.05-0.09 ≤0.2 Fluoride (F-) mg/L 0.23-0.32 ≤1.0

Iodide (I-) mg/L ND ≤0.2 Cyanide (CN) mg/L ND ≤0.05 Mercury (Hg) mg/L ND ≤0.001 Arsenic (As) mg/L ND ≤0.05

Selenium (Se) mg/L ND ≤0.01 Cadmium (Cd) mg/L ND ≤0.01

Hexavalent chromium (Cr6+) mg/L ND ≤0.05 Lead (Pb) mg/L ND ≤0.05

Beryllium (Be) mg/L ND ≤0.0002 Barium (Ba) mg/L ND ≤1.0 Nickel (Ni) mg/L ND ≤0.05

Dichlorodiphenyltrichloroethane (DDT) μg/L ND ≤1.0 Lindane (666) μg/L ND ≤5.0

Total coliform bacteria no./L ND ≤3.0 Total bacteria no./L 15 ≤100

Total alpha (α) radioactivity Bq/L ND ≤0.1 Total beta (β) radioactivity Bq/L ND ≤1.0

Note: ND means no detection. Source: Domestic EIA, 2019.

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234 The results show that ground water quality near the subproject sites is good.

g. Tuyouqi County

235 During domestic EIA preparation, ground water quality monitoring was conducted near the subproject 2 site and animal quarantine station. Three ground water samples were taken (one is for No.1 and No.2 breeding bases, one is for No.3 breeding base and one is for No.4 breeding base). The results are presented in Table IV-16.



Color HU 4-7 ≤15 Odor and taste --- none none

Turbidity NTU 1.3-2.1 ≤3 Visible object --- none none

pH --- 7.2~8.3 6.5~8.5 Total hardness (as CaCO3) mg/L 207-311 ≤450 Total dissolved solid (TDS) mg/L 403-588 ≤1000

Sulfate (SO42-) mg/L 75-121 ≤250

Chloride (Cl-) mg/L 89-157 ≤250 Iron (Fe) mg/L 0.008-0.012 ≤0.3

Manganese (Mn) mg/L 0.029-0.040 ≤0.1 Copper (Cu) mg/L 0.015-0.034 ≤1.0

Zinc (Zn) mg/L 0.011-0.048 ≤1.0 Molybdenum (Mo) mg/L ND ≤0.1


Anionic surfactant mg/L 0.08-0.14 ≤0.3 Permanganate index (IMn) mg/L 1.8-2.5 ≤3.0

Nitrate (NO3-, as N) mg/L 8.1-11.2 ≤20

Nitrite (NO2-, as N) mg/L 0.006-0.012 ≤0.02

Ammonia nitrogen (NH3-N) mg/L 0.04-0.08 ≤0.2 Fluoride (F-) mg/L 0.13-0.20 ≤1.0








Note: ND means no detection; Source: Domestic EIA, 2019.


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h. Guyang County

237 During the domestic EIA preparation, ground water quality monitoring was conducted near the subproject 2 location and animal quarantine station. One ground water samples was taken. The results are presented in Table IV-17 Table IV-15.



Color HU 6 ≤15 Odor and taste --- none none

Turbidity NTU 1.5 ≤3 Visible object --- none none

pH --- 7.3 6.5~8.5 Total hardness (as CaCO3) mg/L 102 ≤450 Total dissolved solid (TDS) mg/L 471 ≤1000

Sulfate (SO42-) mg/L 95 ≤250

Chloride (Cl-) mg/L 72 ≤250 Iron (Fe) mg/L 0.011 ≤0.3

Manganese (Mn) mg/L 0.013 ≤0.1 Copper (Cu) mg/L 0.033 ≤1.0

Zinc (Zn) mg/L 0.026 ≤1.0 Molybdenum (Mo) mg/L ND ≤0.1


Anionic surfactant mg/L 0.06 ≤0.3 Permanganate index (IMn) mg/L 0.61 ≤3.0

Nitrate (NO3-, as N) mg/L 6.2 ≤20

Nitrite (NO2-, as N) mg/L 0.007 ≤0.02

Ammonia nitrogen (NH3-N) mg/L 0.07 ≤0.2 Fluoride (F-) mg/L 0.29 ≤1.0








Note: ND means no detection; Source: Domestic EIA, 2019.


5. Solid Waste

a. Erenhot

239 Erenhot has a landfill. The designed capacity of the landfill is 850,000 m3 and daily treated waste is 300 t/d. The landfill has been in operation since 2006. Subproject 1 will generate about 99.2 kg/d domestic waste, which will be treated and disposed of in this landfill.

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b. Damaoqi County

240 Damaoqi County has a landfill. The designed capacity of the landfill is 650,000 m3 and daily treated waste is 200 t/d. The landfill was under operation from 2016. The No.1 to 4 sheep breeding bases and sheep slaughtering, processing and logistic facility will generate about 386 kg/d domestic waste, which will be treated in this landfill.

c. Tuyouqi County

241 Tuyouqi County has a landfill. The designed capacity of the landfill is 700,000 m3 and daily treated waste is 200 t/d. The landfill is estimated to be operated for 20 years. The landfill was under operation from 2010.

d. Guyang County

242 Guyang County has a landfill. The designed capacity of the landfill is 680,000 m3 and daily treated waste is 200 t/d. The landfill was under operation from 2010. The No.5 sheep breeding base will generate about 34 kg/d domestic waste, which will be treated in this landfill.

C. ECOLOGICAL RESOURCES AND ENVIRONMENT

1. FLORA AND FAUNA

a. Erenhot

243 Flora plants in Erenhot are mainly desert plants which include Kleinmen, Stipa grandis, S. glabra, Artemisia scoparia, Agropyron, Artemisia, and Valerian. Among these plants, the common medicinal plants are ephedra, gmelin sealavender herb, rhizoma anemarrhenae etc.

244 There are few species of wild animals in Erenhot which include rabbits, rodents, sand chickens, and finches. Wild rare animals include Mongolian wild donkeys, yellow sheep, etc

b. Damaoqi County

245 There are 62 families, 200 genera and 343 species of wild plants in Damaoqi County, with the largest number of compositae. Main plants are pinus tabulaeformis, platycladus orientalis, betula platyphylla, eucalyptus, apricot, astragalus, codonopsis, bupleurum, licorice, ephedra, gentiana, astragalus, rhubarb, and safflower. The main wild animals are roe deer, badger, scops owl, crow, magpie, ground squirrel, hemiptera, chukar, hare, fox, snake etc.

246 Main medicinal materials include licorice and scutellaria. Wild rare animals include Mongolian wild donkey, yellow sheep, etc. Common birds include hawk, lark, etc.

247 There are two PRC’s grade II protected rare plants- prunus mongolica and Cistanche salsa, one IMARS’s grade II protected plants- licorice and five IMARS’s grade II protected plants- atraphaxis bracteate, roundleaf polygonum, prunus pedunculata, scutellaria baicalensis and iris potaninii.

248 There are 28 national-level protected animals in the area, including 4 national Grade I protected animals: equus hemionus, great bustard, chlamydotis macqueeni and golden eagle; 24 Grade II protected animals: argali, gazella subgutturosa, mongolian gazelle, chinese mountain cat, lynx, saker etc.

c. Tuyouqi County

249 The main wild plants include spruce, pinus tabulaeformis, oriental arborvitae, white birch,

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apricot, jujube, alfalfa, licorice, scutellaria, codonopsis, ephedra, scutellaria, sedge, valerian, flat kidney bean, grass hibiscus, wild pea, wild leek etc.

250 The main wild animals include goral, wolf, fox, raccoon, rabbit, squirrel, sparrow hawk, golden eagle, swallow, mongoose, chukar, carp etc.

251 The medicinal materials produced in the area include scutellaria, medlar, licorice, radix isatidis, chrysanthemum, honeysuckle etc.

d. Guyang County

252 The wild plants include pinus tabulaeformis, platycladus orientalis, betula platyphylla, elm, apricot, astragalus membranaceus, codonopsis pilosula, bupleurum, licorice, ephedra, radix gentianae, astragalus membranaceus, rhubarb, radix astragali, etc.

253 The main wild animals include roe deer, badger, scops owl, cormorant, eagle, hare, fox, hemiptera, chukar, black eagles, owls, crows, magpies, ground squirrel, snakes, etc.

2. SPECIAL PROTECTED AREA

a. Erenhot

254 There is one IMAR’s protection zone in Erenhot- Erenhot basin dinosaur fossil reserve. The main protection objects are the stratum of Late Cretaceous in the protection zone. This protection zone is about 10 km from the subproject sites. The protection zone has an area of 10,471 ha and is the national 4A tourist attraction16 in China. The location of the zone is presented in Figure IV-8.

16 The tourist attractions in China are divided into five category: A, AA, AAA, AAAA and AAAAA. AAAAAA is the highest rank. The rating standard is Standard of rating for quality of tourist attractions (GB/T 17775-2003)

79

Figure IV-8: Location of Dinosaur Fossil Reserve Source: Domestic EIA, 2019.

b. Damaoqi County

255 There is one IMAR’s protection zone in Damaoqi County- Bayin Hanggai Natural Protection Zone which is located at the west of Damaoqi County.This protection zone is about 120 km away from the subproject sites.

c. Tuyouqi County

256 There is one PRC’s protection zone in Tuyouqi County- Jiufeng Mountain natural reserve. This protection zone is about 50km away from the subproject sites.

d. Guyang County

257 There are two county level protection zones in Guyang County- Chunkun Mountain protection zone and Honghua Aobao protection zone. These protection zone are about 55km and 89 km from the subproject sites.

D. SOCIO- ECONOMIC CONDITIONS

a. Erenhot

258 In 2018, the city’s GDP was CNY 11.78 billion, of which the primary sector accounted for 0.65%; the secondary sector accounted for 34.81%; and the tertiary sector accounted for 64.54%. Per capita disposable income in 2018 was CNY 43,750.

259 Total area of Erenhot was 4,015.1 km2 and urban area of Erenhot was 27 km2.Total population was 71,868 by the end of 2018.

260 Erenhot City is comprised of Gerileaodu Sumu and 8 communites (Dongcheng, Xicheng, Nanyuan, Beijiang, Xilin, Eren, Huhe and Wulan).

261 From January to July, 2019, Erenhot port imported 869,000 tons wood from Russia with a total value of 1.31 billion. The exported quantity was increased by 28.2% and the value was increased by 31.2%.

b. Damaoqi County

262 In 2018, the city’s GDP was CNY 2.184 billion, of which the primary sector accounted for 6.8%; the secondary sector accounted for 60.4%; and the tertiary sector accounted for 32.8%. Per capita disposable income in 2017 was CNY 26,756 while in urban area was CNY 39,978, and in rural area was CNY 15,257.

263 Total area of Damaoqi County was 18,177 km2. Damaoqi County is comprised of 7 towns, 1 Sumu and 1 industrial park.

264 Total population was 111,586 by the end of 2017, in which 30,694 were in urban area, 80,892 in rural area, 56,920 were male and 54,666 were female.

265 The Mandula port mainly imports coal and iron from Mongolia. No wood is imported through the Mandula port.

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c. Tuyouqi County

266 Tuyouqi County is comprised of 5 towns and 3 villages with a total area of 2,368 km2. Total population was 360,000 by the end of 2018.

267 In 2018, the city’s GDP was CNY 38.98 billion, of which the primary sector accounted for 9.2%; the secondary sector accounted for 47.8%; and the tertiary sector accounted for 43.0%. Per capita disposable income in urban area was CNY 37,125, and in rural area was CNY 17,601.

d. Guyang County

268 Guyang County is comprised of 6 towns 1 street and 72 villages with a total area 5,025 km2. The total population was 213,000 by the end of 2018, of which 171,000 was agricultural population.

269 In 2018, the city’s GDP was CNY 14.29 billion. Per capita disposable income was CNY 31,616 in the urban area, and CNY 13,797 in the rural area.

E. PHYSICAL CULTURAL RESOURCES (PCRs)

a. Erenhot

270 The area around the urban area, especially a saline lake known to paleontologists as Iren dabasu to the east, is known for the discovery of a number of different dinosaurs. The city has a dinosaur museum, and a big arch in the form of two Sauropoda was built in 2006 on the highway southward. In 2007, a number of smaller figures of different species were added.

271 Based on the site visit, there are no known PCRs in component site or in a radius of 500 m from the component site.

b. Damaoqi County

272 Damaoqi County has a rich history. In the city, there are famous PCRs such as Aolun Sumu ruins of ancient city, Qin Dynasty Great Wall, Han Dynasty Great Wall, North Wei Kingdom Great Wall, Jin Kingdom Walls. Damaoqi County is also famous for rock paintings including the Wulancabu rock painting.

273 However, based on the site visit, there are no known PCRs in component site or in a radius of 500 m from the component site.

c. Tuyouqi County

274 There is a famous Buddhist resort in Tuyouqi County-Meidaishao Town, which is a national cultural relics protection unit. There are places of historical interest such as Qingquan Temple and Chaoyang Cave. The Jiufeng Mountain Forest Area is the only original secondary forest area in the central and western Inner Mongolia.

275 Based on site visit, there are no known PCRs in component site or in a radius of 500 m from the component site.

d. Guyang County

276 Guyang County has a rich history and is a strategic post. It was once a battleground

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between the agricultural people from China’s central plains and the northern nomads. In the city area, there are famous PCRs like Qin Dynasty Great Wall and Jin Kingdom Walls.

277 Based on the site visit, there are no known PCRs in component site or in a radius of 500 m from the component site.

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V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Project Area of Influence and Sensitive Receptors

278 The following distances were applied to identify the sensitive receptors:

(i) for construction and/or operational noise – receptors within 200 m from the noise-generating source;

(ii) for construction-related air quality impact (e.g. particulates from road excavation) – receptors within 500 m from the source;

(iii) For construction/operation-related ecological impact, receptors within 300 m from the source

(iv) for construction/operation-related surface water quality impact - surface water within 300 m upstream and 1,000 m downstream from the construction sites.

279 A construction site with a radius of these distances is assumed to encompass the total project area of influence

1. Subproject 1: Inner Mongolia Sustainable Cross-Border Development Investment Program in Erenhot

280 The Components 1, 2 and 3 of Subproject 1 are located at undeveloped Sino-Mongolian Erenhot-Zamyn Uud ECZ and no sensitive receptors are existing as shown in for these three components in the ECZ in Erenhot.

281 The Component 4 will only has noise pollution and traffic impacts during the construction period. The environmental sensitive receptors defined for this subproject and its components are shown in Figure V-1 and in Table V-1.

Table V-1: Environmental Sensitive Receptors

Item Name

Distance and

direction to

sensitive receptor

No. of

People

potentially

affected

Type of Impact

Air, Acoustic Zhongyu Yacheng Hotel SE, 225 m 150

Noise pollution

Bianjian Community SE, 675 m 500 Source: Domestic EIA, 2019.

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Figure V-1: Environmental Sensitive Receptors at Erenhot for

Component 4 in Subproject 1


2. Subproject 2: Inner Mongolia Sustainable Cross-Border Development Investment

Program in Mandula Port

282 Based on site visit, there are no environmental sensitive receptors defined for the construction components 1, 2 and 3 of Subproject 2 as shown in Figure III-2 (top) in Mandula Port of Boutou Municipality.

3. Subproject 3– Establishment of Quarantine Station in Mandula Port, Expansion of

Stud Sheep Breeding Bases and Mutton Industry Comprehensive Development

283 The environmental sensitive receptors defined for this subproject and its components are shown in Table V-2.

Table V-2: Environmental Sensitive Receptors for Subproject 3

Item Name Distance and direction to sensitive receptor

No. of people potentially affected

Type of Impact

Air, Acoustic

Zhangjiahulutou Village

NW, 604 m 350

Air and noise pollution

Donghulutou Village SW, 127 m 500 Zhaojiaying Village SW,737m 280 Xibafenzi Village E, 1,410 m 400 Daolaban Village SW, 260m 360

225m 675m

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Item Name Distance and direction to sensitive receptor

No. of people potentially affected

Type of Impact

Xiadaolabanshen Village

NW, 246m 450

Dasanyanjing Village

SW, 370m 500

Dushoujiang Village S, 167m 600 Kangsiyingzi Village NW, 521m 400


284 For Component 6 on construction of a sheep slaughtering, processing and logistic facility, there are no identified sensitive receptors. For the No. 5 breeding farm (base) of Component 3, there are no sensitive receptors either.

Figure V-2: Environmental Sensitive Receptors for Component 2 of

Subproject 3: Construction of quarantine station in Mandula Port


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Figure V-3: Environmental Sensitive Receptors near No.1 and No.2 Farming Base of Component 3 in Subproject 3 Source: Domestic EIA, 2019.

Zhangjiahulutou Village

Donghulutou Village

Zhaojiaying Village

Xibafenzi Village

1,410 m

No.2 farming base

No.1 farming base

127m

604m

737m

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Figure V-4: Environmental Sensitive Receptors near No.3 Farming Base of Component 3 of Subproject 3 Source: Domestic EIA, 2019.

No.3 farming base

Daolaban Village

560m

Xiadaolabanshen Village

246 m

Dasanyanjing Village

370m

87

杜守将营子村

壕堰村

康四营子村

朱麻营村

521m

167m

997m

1462m

Figure V-5: Environmental Sensitive Receptors near No.4 Farming Base of Component 3 of Subproject 3 Source: Domestic EIA, 2019.

No.4 farming base

Dushoujiang Village

167 m

Kangsiyingzi Village

521 m

88

Figure V-6: Environmental Sensitive Receptors near No.5 breeding base of Subproject 3


Figure V-7: Environmental Sensitive Receptors near component 6 of Subproject 3 Source: Domestic EIA, 2019.

Xingfu Village

1.3 km

Meidaiqiao Village

850 m

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B. Impacts and mitigation measures during Pre-construction Phase

285 The following measures will be implemented in the engineering design and pre-construction phases to ensure the project’s readiness for environment management.

i) Preparation and updating of EMP in pre-construction planning and detailed design stage.

286 The following safeguards will be addressed.

➢ Appointing one environmental officer within each PIE to coordinate EMP

implementation.

➢ Recruiting a PIC-ES by the IPMO for training on the EMP implementation, site

specific EMP development, project specific environmental quality monitoring,

developing detailed monitoring plan for construction and operation periods in

accordance to the monitoring plan.

➢ Recruiting a EMA to conduct independent monitoring of the EMP implementation.

➢ Updating of the EMP prior to tendering and construction as necessary and

including EMP requirements in tender and contract documents.

➢ Developing a plan to implement the GRM, including developing subproject

operational GRMs; providing training to the PIE staff and GRM access points;

disclosing the GRM phone numbers, addresses, and emails to the public on

information boards at each construction site; and establishing database for

feedbacks.

➢ Consulting and informing residents and key stakeholders near the construction

sites regarding the construction timing and approach, and

➢ Confirming all project facilities will not use any materials containing asbestos.

ii) Contractor EMP in pre-construction planning and detailed design stage. The following safeguard issues will be addressed.

287 Prior to construction, prepare a site-specific EMP which shall fully respond to the requirements set in the project EMP, and shall include several sub-plans, including the following:

➢ Soil erosion protection plan, identifying likely areas of soil erosion and the mitigation measures which the contractor will employ to minimize potential erosion around any excavations and construction areas.

➢ Borrow and spoil management plan, specifying location of borrow pits, quarries and spoil disposal sites, as needed. Contractors will ensure that (i) borrow areas will be located away from residential areas, water bodies and will avoid valuable pasture/grazing land, (ii) after use borrow pit areas will be graded to ensure drainage and visual uniformity, and (iii) borrow pit restoration will follow the completion of works in full compliance with all applicable standards and specifications;

➢ Water protection plan, defining measures to be taken during construction to avoid/mitigate pollution arising from construction site drainage (silt), use of chemicals, construction around existing landfills containing leachate and other

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potential pollution sources;

➢ Health and safety risk management plan for management of community and occupational health and safety. Civil work contractors shall also consult with relevant local departments to double check location of utilities prior to any construction activities at all MSW transfer sites;

➢ Spill management plan, defining the specific requirements, protocols, responsibilities, and materials necessary to implement an emergency spill response following an incident;

➢ Waste management plan, defining procedures for management of household waste, construction waste, detailing arrangements for storage and transportation of the waste to landfills; and

➢ Traffic management and access plan, identifying construction activities that may affect the local traffic and communicating with local traffic control agencies on the timing and locations of construction activities.

iii) Soil resources. The project activities may cause a loss of land and topsoil, increasing the risk of erosion. To mitigate the impact on soil resources, following measures are recommended.

➢ Minimize land acquisition for development.

➢ Incorporate landscape and revegetation features in design;

➢ Retain/incorporate landscape features in design.

➢ Optimize balance between cut and fill and avoid deep cuts and high embankments to minimize earthworks.

➢ Maximize reuse of spoil and other material within the construction or adjacent construction works.

➢ Select spoil disposal sites and develop spoil management and rehabilitation plan.

➢ Specify removal and storage of topsoil for restoration works prior to main earthworks.

➢ Specify vegetation that serves specific bioengineering functions and is of local provenance.

➢ Design appropriate drainage systems for slopes to reduce soil erosion.

iv) Emission. To minimize the air emissions of project activities, following measures will be adopted.

➢ Specify local materials to minimize transport distance.

➢ Locations for borrow areas must be at least 300 m downwind of the nearest household.

➢ On-site asphalting and concrete batching are prohibited.

➢ Procurement of less pollutive machines/equipment.

v) Water bodies. To minimize the risk of polluted runoff into water bodies, the following measures will be adopted.

➢ Ensure in technical design that drainage design and discharge locations are specified to minimize risk of polluting nearby water bodies.

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➢ Design on-site wastewater treatment facilities with appropriate technologies and adequate capacities.

➢ Ensure that water is treated to the relevant standards prior to discharge to the municipal sewer systems.

vi) Bidding documents and contract documents. The related clauses in the EMP will be included in all bidding documents and contracts for procurement of civil works, goods and services. All contractors and subcontractors will be required to comply with the EMP.

vii) Contractor obligations. All contractors, in their bids, will respond to the environmental clauses in the bidding documents to meet the EMP requirements.

viii) Grievance Redress Mechanism (GRM). The IPMO and IAs will launch the project GRM at least two months before the start of construction to ensure that project communities and public services (e.g. schools and hospitals) are well informed and provided with opportunities to voice and discuss their concerns.

ix) Institutional strengthening and staffing. The PIEs will assign qualified staff responsible for the EMP implementation.

x) Training in environmental management. The LIS-EC will provide training on implementation and supervision of environmental mitigation measures to the PIEs and contractors and construction supervision companies (CSCs). This will be organized by the IPMO and IAs.

C. Construction Phase - Impact and Mitigation Measures

1. Soil erosion and earthwork balance

288 Soil erosion mainly occurs during the construction phase. The formation of exposed surface due to excavation of high steep slope is more subject to soil erosion in rainy seasons. Temporary construction sites, earth borrow pits, spoil sites and other areas are most vulnerable to erosion where surface soil will be disturbed. Without management, the construction works may cause soil erosion and/or contamination. Soil erosion may be caused by unprotected stockpiles of soil and spoil, excavation and storm runoff.

289 Implement soil erosion control measures. Before construction, the contractors will be required to prepare a Site Drainage and Soil Erosion Management Plan (as part of the CS-EMP) to prevent soil erosion. The plan will include the following soil erosion control measures;

i) Maintain slope stability at cut faces by implementing erosion protection measures such as terraces and silt barriers during road constructions;

ii) Stabilize all cut slopes, embankments, and other erosion-prone working areas while constructions are going on;

iii) Stabilize all earthwork disturbance areas within 30 days after earthworks have ceased at the sites;

iv) Minimize active open excavation areas during trenching activities and use appropriate compaction techniques for pipe trenches construction;

v) Provide temporary detention ponds for containment to control silt runoff;

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vi) Prevent runoff entering construction sites, and divert runoff from sites to existing drainage or open ground for watering the vegetation by constructing intercepting ditches and drains;

vii) Strip and stockpile topsoil, and cover or seed temporary soil stockpiles;

viii) Waste construction material such as residual concrete, asphalt, etc., will be properly handled for reuse or disposal.

ix) Limit construction and material handling during periods of rains and high winds;

x) Properly slope or re-vegetate disturbed surfaces, such as compacted pipeline trenches and cut banks and;

xi) Appropriately set up temporary construction camps and storage areas to minimize the land area required and impact on soil erosion.

290 Internal inspection and monitoring should be conducted by contractors and CSCs while compliance inspection and monitoring shall be conducted by the EMA or a licensed institute. The inspection and monitoring results will be submitted to the IPMO, PIEs, local EEBs and Water Resources Bureaus to serve as basis for project implementation progress reports and acceptance of construction.

291 Mitigation measures for soil contamination control include the following:

i) Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas, and use the best management practice to avoid soil contamination;

ii) Remove all construction wastes from the site to approved waste disposal sites;

iii) Establish a Spill Management Plan; and

iv) Provide spill cleanup measures and equipment at each construction site and require contractors to conduct training in emergency spill response procedures.

2. Noise

292 The major sources of noise are movement of construction vehicles, haulage of construction materials to the construction sites and the noise generating activities at the construction sites. Foundation works, concrete mixing and material movements are the primary noise generating activities and will be uniformly distributed over the entire construction period.

293 Each construction machine can be treated as one point noise source. The point source noise attenuation formula and noise superimposed formula were used in the noise impact assessment to predict the major construction machinery noise impacts during construction.

Point source noise attenuation formula:

Lr

rLL −

−=

1

2

12 lg20

Noise superimposed formula:

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=

=

n

i

L

eqs

eqiL1

1.01010

Where,

L1,L2 - the noise value at points of r1.r2 (dB(A)); r1,r2 - the distances of the points to the noise source(m);

△L- Houses, trees and other shield contributions to noise attenuation value (dB(A));

Leqs -The equivalent sound level value at the prediction point (dB(A)); Leqi - Equivalent sound level of the i-th point source on the prediction point (dB(A)).

294 Without consideration of the construction fence contribution to machinery noise attenuation (i.e., the △L=0), machinery attenuation only rely on spatial distance natural

attenuation, the intensity and scope of the noise caused by the project have been modeled (Table V-3).

Table V-3: Predictive noise levels of construction machinery with various distances (Unit: dB(A))

Major construction machinery

Predictive noise values

GB12523-2011

standard

Distance to meet GB12523-2011

standard (m)

Distance from machine

10 m 20 m

40 m

80 m

160 m

200 m

Day Night day night

Loader 78.0 71.9 65.9 59.9 57.2 56.1 70 50 53 225 Excavator 78 0 71.9 65.9 59.0 56.6 56.0 70 50 53 225 Bulldozer 78.0 71.9 65.9 59.9 57.2 56.1 70 50 53 225 Pneumatic hammer, pneumatic drills

88.0 81.9 75.9 69.9 59.1 57.8 70 50 120 359

Air compressor 88.0 81. 75.9 69.9 59.1 57.8 70 50 120 359 Static pressure piling 78.0 71.9 65.9 59.9 57.2 56.1 70 50 53 225 Tower crane 73.0 66.9 58.9 54.9 54.2 48.9 70 50 30 159 Bar Straightening Machine

78.0 71.9 65.9 59.9 57.2 56.1 70 50 53 225

Stone cutting machine

83.0 79 70.9 64.9 57.9 57.1 70 50 90 292

Chainsaw 73.0 66.9 60.9 54.9 57.2 56.1 70 50 53 159 Hammer 73.0 66.9 60.9 54.9 57.2 56.1 70 50 53 159 Multi-function woodworking plane

83.0 76.9 70.9 64.9 57.9 57.1 70 50 92 292

All machinery operated at the same time

93.1 87.0 81.0 75.0 72.6 68.2 230 430


295 Noise generated from a sole construction machinery, will decay as the distance increases. Table V-3 shows that for construction machinery noise in the unobstructed case, the impact zone of a single noise source is estimated to be 30-159 m in radius distance at daytime and 159-359 m in radius distance at night (i.e., distance to meet the requirements of Noise Standards for Construction Site Boundary, GB12523-2011). If all of the machinery and equipment are operated at the same time, the distance of impact increases to 230 m at daytime and 430 m at night.

296 Contractors will be required to regulate their construction activities and implement the following mitigation measures to ensure the compliance with the relevant provisions of the PRC Environmental Noise Pollution Prevention Ordinance and the IMAR Environmental Protection Ordinance:

(i) Limit the construction activities, and particularly noisy ones, to reasonable hours during the day and early evening. Construction activities will be strictly prohibited

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during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of such night time activities well in advance.

(ii) Avoid concurrent high-noise activities when undertaking construction planning and schedule high noise activities to be conducted during the day rather than evening hours. Similarly, construction sites shall be planned to avoid multiple high noise activities or equipment operations to occur at the same location.

(iii) Select low-noise equipment as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise.

(iv) Provide noise PPE to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2, physical agents (GBZ 2.2-2007) and EHS Guidelines.

(v) Maintain equipment and machinery in good working condition; undertake regular equipment maintenance, ensure compliance with PRC standards of GB 12523-2011.

(vi) Install temporary anti-noise barriers to shield buildings where non-compliance with Category II in Environmental Quality Standards for Noise (GB3096-2008) is monitored.

(vii) Disseminate information on procedures of handling complaints through the GRM.

3. Vibration

297 Vibration impacts are expected during infrastructure works, including vibrations from roadbed compacting and rolling, etc. The impact of vibration during construction is mainly reflected by the impact of construction machineries with strong vibration on sensitive receptors that are close to the construction sites. Machines that generate vibration during construction include excavators, bulldozers, road rollers, and air compressors.

298 On the proposed construction sites, different degrees of mechanical vibration will occur. Such vibration is sudden and discontinuous, which can annoy people nearby the sites and construction workers. Main construction machineries include vibrating road rollers, land scrapers, loaders, stone crashers and spreading machines, among which the impact of vibrating road rollers is the highest.

299 Vibration level decreases quickly from the machinery source over distance. The vibration level decreases from the 80dB range at 10 m from the machine to the 70dB range at 30 m. The national standard is 67dB for the night and 70dB for the day time. This indicates that the vibration level will diminish quickly to the national standard level at approximately 30 m from the source of machine vibration.

300 There are no sensitive receivers within 30 m from the construction sites. Vibration generated during construction is anticipated to have very limited impacts to the areas beyond 30 m from a construction site. Mitigation measures defined in the EMP include prohibition of piling and compaction operations at night, which will effectively reduce the vibration impact to acceptable levels.

301 Mitigation measures for vibration control include the following:

(i) Avoid concurrent construction activities with high vibration when undertaking construction planning;

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(ii) Schedule high vibration activities to be conducted during the day rather than evening. Similarly, construction sites shall be planned to avoid multiple high vibration activities or equipment operations to occur at the same location.

(iii) Select low vibration equipment as much as possible. Equipment and machinery should be equipped with vibration dampers and will be properly maintained to minimize vibration.

(iv) Maintain equipment and machinery in good working condition.

(v) Disseminate information on procedures of handling complaints through the GRM.

4. Air Quality

302 Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation, filling, loading, hauling, unloading; (ii) dust generated from disturbed and uncovered construction areas, especially in windy days); (iii) dust generated by the movement of vehicles and heavy machinery on unpaved access and haul roads; (iv) dust from aggregate preparation and concrete-mixing; (v) vehicle emission from construction vehicles and heavy diesel machineries and equipment (gaseous CO, CH and NO2); and (vi) asphalt flue gas during road pavement. The dust and gaseous air emissions could affect nearby sensitive receptors.

303 A particular emission from road construction is asphalt flue gas. During the asphalt heating and mixing process, the fuel burning will produce smoke, and the asphalt will produce flue gases emissions. Currently, modern asphalt mixing equipment used in the PRC releases typical emission concentrations of asphalt flue gases of about 30 mg/m3, which complies with asphalt flue gas discharge requirements of 80-150 mg/m3 of Integrated Emission Standards of Air Pollutants (GB16297-1996). It also complies with the Ambient Air Quality Standards (GB3095-1996), which limits the concentration of benzopyrene at 0.01 µg/m3 (at 100 m downwind from the asphalt mixing station).

304 The quantity of dust generated by the construction activities depends on the force of the wind, the humidity of the material, the level of construction and the state of site. It is estimated that under the general condition (with an average wind speed of 2.5 m/s) in the area of 150 m downwind from the construction, the dust becomes less apparent and disturbing.

305 For dust generated when transporting earth and other construction powdery materials, the impact exceeds 60 m on both sides of the transport route. However, dust concentration decreases rapidly as the distance increases, so there are basically no significant impacts beyond 200m downwind.

Table V-4: Households/persons within 150m of the construction works

District/ Subproject area Households Population

Donghulutou Village/ No.2 farming base 150 500

Total 150 500


306 A series of mitigation measures are defined for reducing the impact of air emission on the sensitive receivers (to be included in technical specifications):

i) Spray water on construction sites and earth/material handling routes where fugitive dust is being generated;

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ii) Locate asphalt plants and mixers as far away as possible (at least 500 m downwind) from the nearest residential areas and other sensitive receptors;

iii) Pay particular attention to dust suppression near sensitive receptors such as schools, hospitals and residential areas;

iv) Limit transport vehicles to low speeds in construction sites;

v) Store petroleum or other harmful materials in appropriate places with covers to minimize fugitive dust and emission;

vi) Cover materials during truck transportation, in particular, the fine material, to avoid spillage or dust generation;

vii) Maintain, water and sweep construction site roads on an needed basis;

viii) Pay special attention to protecting sensitive sites near the subproject sites. High noise construction activities will be positioned as far away from sensitive sites as possible and

ix) Ensure that emissions from vehicles and construction machineries are in compliance with the PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005.

307 With the above mitigation measures, the impact of construction on air quality is anticipated to be acceptable.

5. Wastewater

308 The proposed components are not expected to cause significant impacts on hydrology and water quality. Nonetheless, measures for construction site management described below are proposed.

309 Waste water generated during construction including domestic wastewater and construction wastewater. Construction wastewater is produced during construction from washing aggregates, pouring and curing concrete, wastewaters from maintenance and cleaning of mechanical equipment and vehicles. The estimated amount of domestic wastewater and solid waste generated by each construction worker is 0.048 m3/d and 0.6 kg/d respectively according to the domestic EIA reports. Each construction site is assumed to have 20 construction workers.

310 Based on the domestic EIA reports, during the construction period, the estimated amount of construction and domestic wastewaters generated from each subproject is summarized in Table V-5.

Table V-5: Wastewaters Generated during Construction of Three Subprojects in Tranche 1

No. Item Subproject 1 Subproject 2 Subproject 3 Total

1 Total construction sites 4 3 7 17 2 Average numbers of construction sites per year 2 1.5 3.5 8.5 3 Construction wastewater generated (m3/d) 3 2 5 7

4 Pollutant generation from construction wastewater (SS kg/d)

0.6 0.4 1 10

5 Pollutant generation from construction wastewater (petroleum kg/d)

0.03 0.02 0.05 2

6 Number of workers at peak construction 80 50 150 0.1 7 Domestic wastewater (m3/d) 3.2 2 6 280

8 Pollutant generation from domestic wastewater (CODcr, kg/d)

0.96 0.6 1.8 11.2

9 Pollutant generation from domestic wastewater 0.48 0.3 0.9 3.36

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No. Item Subproject 1 Subproject 2 Subproject 3 Total

(BOD5, kg/d)

10 Pollutant generation from domestic wastewater (NH3-N, kg/d)

0.128 0.08 0.24 1.68


311 To prevent pollution of water resources, the following mitigation measures will be implemented:

i) Worker camps will be installed with sufficient toilets which will be provided for the workers and will be cleaned and discharged to municipal sewerage systems on a regular basis.

ii) Construction wastewater will be directed to temporary detention and settling ponds, and then treated water will be partially recycled for use in dust control and the rest of treated water will be discharged to the local municipal sewer systems. The waste residue in the tank is cleared and transported to designated and engineered landfills certificated by the local sanitation department for construction waste treatment and disposal. If needed, polyacrylamide flocculent will be used to facilitate the particle settling. All discharged construction wastewater will to be treated to meet the appropriate PRC standards (GB/T 31962-2015) prior to discharge.

iii) All necessary measures will be undertaken to prevent construction materials and wastes from entering drains and water bodies.

iv) Maintenance of construction equipment and vehicles will not be allowed on sites to reduce wastewater generation.

v) Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. The separated oil and silts will be collected, transported and treated by certificated companies. The treated water will be discharged to municipal sewer systems;

vi) All construction machinery is repaired and washed at special repairing shops. No on-site machine repair, maintenance and washing shall be allowed so as to reduce wastewater generation;

vii) Storage facilities for fuels, oil, and other hazardous materials are within secured areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup kits.

6. Impact on groundwater

312 As groundwater in the project areas of influence is generally deep, no major impacts on groundwater resources are anticipated during both the construction or operational phases of the roads and auxiliary facilities. No water supply wells/hand pumps are located in the areas of potential impact by the subprojects.

313 On the other hand, fuels and chemicals used for road construction could contaminate groundwater if they are not properly stored and disposed of. Spills of toxic substances resulting from traffic accidents during construction may also contaminate groundwater if no proper emergency responses are undertaken.

314 Measures to avoid surface water and groundwater contamination include the following:

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i) During road construction, contractors will be required to pump slurry to the storage basins and properly dispose of cutting materials. This will reduce the disturbance of sediments and the impact to water quality;

ii) Contractors will be required to develop contingency plans for control of oil and other dangerous substances (Spill Management Plan) as part of the CS-EMP;

iii) Wastewaters from construction activities will be collected in sedimentation tanks, retention ponds, and filter tanks to remove silts and oil;

iv) Wastewaters should drain to municipal sewer mains after the site pretreatment;

v) All areas where construction equipment is washed will be equipped with water collection basins and sediment traps;

vi) Fuel storage, maintenance shop and vehicle cleaning areas must be stationed at least 500 m away from the nearest waterbody;

vii) Storage facilities for fuel, oil, and other hazardous materials will be located within secured areas on impermeable surfaces at a 110% volume of the materials stored, and provided with bunds and cleanup installations;

viii) Contractors’ fuel suppliers must be properly licensed. They shall follow the proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods);

ix) Labor camps will be located at least 500 m away from rivers and other surface waterbodies; and

x) Eco-toilets and on-site wastewater pre-treatment systems will be installed at construction camps along with proper maintenance protocols.

7. Solid waste

315 Solid waste from workers’ camps. While most workers will live in rented apartments, some work camps might be needed. An estimated average of 0.6 kg/day per worker of garbage is produced in construction camps according to the domestic EIA reports. A covered garbage basin will be installed at each construction camp. It will be the responsibility of the construction contractors to provide sufficient garbage bins at proper locations and to ensure that these garbage bins are protected from birds and vermin, and emptied regularly. The contractors’ responsibility is included in the EMP and will be included in bidding documents and construction contracts. Because the construction sites are within or near the existing urban areas, most of the construction workers are anticipated to live in rented apartments, which are serviced with the existing municipal solid waste collection systems.

316 Construction wastes. Construction wastes could have adverse impacts on the surroundings if not properly managed. Construction wastes that are not re-cyclable will be collected on site and not be disposed of in a way that will damage nearby farmlands or the immediate environment. Construction wastes will be regularly transported off-site by the contractor for disposal at disposal sites approved by the local land resource bureaus in compliance with the PRC Law on Prevention and Control of Environmental Pollution by Solid Waste (issued on 29 December 2004). The waste disposal shall also comply with the scrap material and demolition waste disposal standards promulgated by the Ministry of Housing and Urban-Rural Construction.

Table V-6: Estimated Volumes of Solid Waste during Project Construction

Subproject to Be Constructed

Number of Workers During

Peak Season

Projected Solid Waste

(kg/d)

Recyclable solid Waste (Plastic, Paper)

(kg/d)

Disposal (kg/d)

Subproject 1 80 40 4.8 35.2

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Subproject 2 50 25 3 22 Subproject 3 150 75 9 66

Total 280 140 16.8 123.2 Source: Domestic EIA, 2019.

8. Physical Cultural Resources

317 No cultural heritage or archaeological sites are existing within 5 km of the project areas.

318 On the other hand, construction activities may have the potential to disturb unknown underground cultural relics. The EMP mitigation measures include the immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The local Cultural Heritage Bureau, IPMOs, and IAs will be promptly notified under such circumstances. Construction will resume only after investigation and with the permission of the appropriate authority. The clause for protection of unknown underground cultural relics will be included in construction contracts.

319 The EMP mitigation measures include the following for protection of physical cultural resources:

i) If a cultural artefact is unearthed, construction works will be stopped immediately and the matter will be reported to the IAs, IPMO and local Cultural Relics Preservation Bureau. The ADB SPS 2009 requirements as well as PRC laws and regulations will be followed. Construction will resume only after investigation and with the permission of the appropriate authority.

ii) The clause for protection of unknown underground cultural relics will be included in construction contracts, to ensure that contractors comply with the PRC's Cultural Relics Protection Law and Cultural Relics Protection Law Implementation Regulations in the event that cultural resources are discovered during construction.

9. Ecological Resources

320 Typical construction impacts on flora and fauna include the removal of vegetation and the disruption of ecosystem during construction. If present, rare or endangered flora or fauna may also be impacted.

321 Potential ecological impacts were assessed as follows:

i) Excavation and land formation activities will be carried out for Subproject 1, 2 and 3. These activities will help limit the clearance of vegetation and reduce the temporary noise and/or visual disturbance to fauna within and near the construction sites.

ii) The subproject sites are located at developed industrial areas and residential areas. Natural flora within the subproject areas is limited and there are no known ecological and/or sensitive resources in or near the subproject sites.

322 The following mitigation measures will be implemented to minimize the ecological impact:

i) Clearly demarcate construction sites and off-limit areas, to minimize the removal of existing vegetation.

ii) Implement timely site rehabilitation, using native plant species.

iii) Store surface soil (0-30 cm) separately for reuse for landscape greening or agricultural soil amendment. The stockpiling shall have a height less than 5m and a slope less than 1:1.5 with proper compaction to avoid soil erosion.

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iv) Provide training to contractors and workers to increase their awareness on the need for protecting the environment, wildlife and vegetation around the construction sites.

v) Regularly inspect construction sites by the construction supervision companies (CSCs) and the IPMO environment officer to ensure that habitats are well demarcated and workers are fully informed of “no-go” areas

323 Overall, the ecological impacts by the Tranche 1 subprojects during construction phase are considered low and manageable due to the following:

i) There are no documented rare, endangered, or protected flora or fauna species, or critical habitats, in or near the construction sites of the IMAR Tranche 1 subprojects;

ii) Affected vegetation and plants comprise widespread species;

iii) Most existing vegetation is secondary and planted; and

iv) The potential impacts from construction activities are short-term, temporary, small-scale and reversible.

10. Specially Protected Areas

324 Based on the site visits, the nearest specially protected area to the project sites is the Erenhot Regional Dinosaur Fossil Reserve, which is about 10 km away the Erenhot Subproject location. There will be no impact to the protected area from project construction activities.

11. Social Issues

325 A full set of land acquisition and resettlement (LAR) plans has been prepared in compliance with the PRC Land Administration Law (2004), PRC Law on Administration of the Urban Real Estate (2007 Revised); Regulations on Administration of Urban Housing Removal (2001); Guidelines for Urban Housing Removal Estimation, and other applicable national guidelines. The LAR plans were also prepared in accordance with local LAR policies of the prefecture and project city/counties, and with ADB’s Safeguard Policy Statement (2009).

326 The LAR plans will be updated based on the census of APs and detailed measurement surveys prior to the project implementation, and then submitted to ADB for review and approval prior to award of civil works contracts. The LAR plans provide a socioeconomic profile of the APs and scope of impacts, and address issues relating to compensation entitlement, legal framework, public consultation, grievance procedure, environmental protection, rehabilitation measure, budgeting and implementation schedule. Resettlement requirements have been carefully considered and incorporated into the design of each project component.

327 The scope of the project works will create some social impacts. Construction may cause unexpected interruption to municipal services in case of unintended damage to pipelines or transmission lines for water, drainage, gas, and/or electricity. The affected traffic by construction would also have an impact on shipping of local agricultural produces and resources out to the urban centers.

328 To meet the needs for skilled and unskilled workers, the project construction will provide employment opportunities for local people, which can benefit the surrounding communities. Opportunities also arise for material suppliers and small-scale businesses that cater for the new development.

329 The potential social impacts will be managed as follows:

i) Local hiring will be given priority to avoid social conflicts;

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ii) The project scale is not expected to cause large population influx to the project areas and will have limited impacts on the local municipal services; and

iii) Education of construction workers will be conducted to minimize social disturbance and cultural conflict.

12. Community and worker health and safety

330 Risks to community and/or worker health and safety include:

i) short-term construction disturbances such as noise and traffic inconvenience to communities;

ii) potential harassment of local women from external workers and/or spread of sexually transmitted disease;

iii) community safety risks from increased traffic and proximity to works sites and machinery; and

iv) risk of injury to workers during construction.

331 The objective of environmental health and safety is to provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease and avoid disturbance to local communities. It is also intended to establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize adverse impacts and risks to the health and safety of local communities.

332 Environmental health and safety therefore encompass the occupational health and safety of the staff/workers at the subproject facilities and the community health and safety of residents living nearby or potentially affected by failures or poor operation of the project facilities.

333 Risks to public utilities and community health and safety. Traffic congestion may worsen as construction traffic in urban areas increases, causing temporary inconvenience to traffic, residents, commercial operations, and institutions. The constructions may also contribute to road accidents through the use of heavy machinery on existing roads. Construction may cause unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply, drainage, and gas supply, as well as to underground power cables and communication cables (including optical fiber cables).

334 Mitigation of impacts on community health and safety. The potential impacts on community health and safety will be mitigated through a number of activities defined in the EMP. The contractors will implement the following measures:

i) Traffic management. A traffic control and operation plan will be prepared, to be approved by the local traffic management administrations before construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed;

ii) Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals;

iii) Underground facilities survey and protection. Construction activities will be planned to minimize disturbances to utility services. Three-dimensional detection of underground facilities will be conducted before construction where appropriate;

102

iv) Information disclosure. Residents, communities and businesses will be informed in advance through media of the construction activities, given the dates and duration of expected disruption; and

v) Construction sites protection. Clear signs will be placed at construction sites in view of the public, warning people against potential dangers such as moving vehicles, hazardous materials, excavations etc., and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate.

vi) Environment, health and Safety. Trainings to workers on occupational health and safety, emergency response will be provided. Appropriate PPE to workers will be supplied. Emergency response exercises will be regularly conducted. The emergence response plan developed for the project will be disclosed to the residents, communities and businesses who may be potentially affected.

335 Risks to occupational health and safety. Construction industry is considered to be one of the most hazardous industries. Intensive use of heavy construction machinery, tools, and materials present physical hazards including noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, chemical hazards such as toxic fumes and vapors, etc.

336 Measures to ensure adequate occupational health and safety. Contractors will implement adequate precautions to protect the health and safety of their construction workers. The occupational health and safety risks will be managed by applying measures in the following order of preference: avoiding, controlling, minimizing hazards, and providing adequate protective equipment. The contractors will undertake the following activities:

i) Environmental, health and safety officer. An environmental, health and safety officer will be appointed by each contractor to implement and supervise the environmental, health, and safety management plan (see below).

ii) Environmental, health and safety management plan. Each contractor will prepare such a plan for the construction works on the basis of the EMP. The plan will include the following provisions:

iii) Clean water. Provide a clean and sufficient supply of fresh water for construction sites and for all camps, offices and workshops;

iv) Sewage and wastewater. Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state;

v) Solid waste. Garbage receptacles at construction sites and camps will be set up, which will be periodically cleared to prevent outbreak of diseases;

vi) Personal protection. Provide personal protection equipment, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations for workers;

vii) Emergency preparedness and response. An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events, and submitted to the local EEBs for review and appraisal. Emergency phone link with hospitals in the three project towns will be established. A fully equipped first-aid base in each construction camp will be organized;

viii) Records management. A records management system that will store and maintain easily retrievable records against loss or damage will be established. It will include

103

documenting and reporting of occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits;

ix) Safety communication. Ensure that occupational health and safety matters are given a high degree of publicity to all persons regularly or occasionally on each construction site. Posters will be displayed prominently in relevant areas of the site; and

x) Training, awareness and competence. Train all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work. Implement site HIV/AIDS and other communicable diseases awareness and prevention program to target the local community and construction workers.

337 Other Social Issues. No other social risks and/or vulnerability are anticipated as a result of the project construction and implementation. The project construction workers will be engaged locally. Prevention and control of transmissible diseases and HIV/AIDS, and community disturbance training and sensitization will be provided to the contractors. Drug and human trafficking education will be provided to the local communities, to be included in the loan assurances and monitored in the social action plans.

338 Core labor standards will be implemented. Civil works contracts will stipulate priorities to:

i) employ local people for works,

ii) ensure equal opportunities for women and men,

iii) pay equal wages for work of equal value, and pay women’s wages directly to them; and

iv) not employ child or forced labor. Specific targets for employment have been included in the social development and gender action plan (SDGAP).

104

D. Operational Phase - Impact and Mitigation Measures

339 Upon completion of construction works, the proposed project facilities will enter the operational stage, which will create a demand for consumption of natural resources and waste collection/treatment services, such as the need for water supply, electricity supply, heating, solid waste collection, wastewater treatment, etc. Since the proposed Tranche 1 subprojects are mainly located in two municipalities (Erenhot and Baotou Municipalities), these associated needs by the Tranche 1 subprojects for energy, water and city services are covered by the two municipalities.

340 Apart from the increased demand on natural resources, the key environmental issues associated with the operation of the project facilities include such issues as vehicle emission, traffic noise, storm-water runoff pollution, wastewater pollution control, traffic safety and the risk of hazardous spills.

341 No major environmental impacts are anticipated during the operation of Subproject 1 and Subproject 2 on urban infrastructure development in Erenhot and Baotou Municipalities. The project buildings and facilities will create certain levels of emission (summarized and discussed in Table V-7), which can easily be managed by integrating the new buildings with the existing or planned municipal services on water supply, MSW disposal, and wastewater collection, treatment and discharge.

Table V-7: Main Resource Use and Emissions, Proposed Abatement, and Conservation Measures

Item Users/Producers Pollutants Anticipated amount

Abatement and conservation measures

Water supply

All subprojects 1273.3 m3/d Water conservation promoted through application of water saving appliances and reclaimed water utilization.

Domestic Wastewater

Dormitories and office buildings

SS, COD, TP, NH3-N, E.coli

36 m3/d

Domestic wastewater of subproject 1 and 2 will be discharged into the municipal sewer and treated at the municipal WWTP. Domestic wastewater of subproject 3 will be treated by buried wastewater treatment equipment and recycled as landscape water.

Production wastewater

Slaughtering process

BOD, COD, TP, NH3-N,

371.2 m3/d

Slaughter wastewater will be treated at on-site wastewater treatment station and partly reused as landscape water and floor clean water.

Municipal Solid Waste

Municipal SW Domestic Waste

280 t/d Reduce and reuse as possible (3R program coordinated by Sustainability Center); landfilling by sanitation contractor.

Noise Fan, air conditioners, pumps

dB(A) --- Low noise equipment and Insulation facilities.

Air emissions

Odor gas from breeding bases and slaughtering

H2S, NH3. --- High efficient purification equipment and proper mitigation measures.


342 Wastewater treatment. The estimated amount of wastewaters generated from the proposed subprojects is shown in Table V-8.

105

Table V-8: Estimated Amounts of Wastewaters Generated from the Proposed

Subprojects

Subproject Wastewater

Type Wastewater

Volume Wastewater Treatment

1 Domestic

wastewater 456.9 m3/d

After initial treatment with the new septic tanks, it will be discharged into municipal sewer system and conveyed to the nearby Municipal WWTP Treatment Plant for further treatment.

2 Domestic

wastewater 76.2m3/d

After initial treatment with the new septic tanks, it will be treated by newly built reclaimed water treatment equipment (200 m3/d) then recycled as landscape water.

3 Domestic

wastewater 54.7 m3/d

The wastewater will be treated by buried wastewater treatment equipment and recycled as landscape water.

4 Production wastewater

552.1 m3/d

The wastewater will be treated at on-site wastewater treatment station and partly reused as landscape water and floor clean water then the remained wastewater will be discharged into municipal sewer system and conveyed to the nearby Municipal WWTP Treatment Plant for further treatment.


343 Potential impacts of the Tranche 1 subprojects on the environment during operation are discussed below for the components under Subprojects 1, 2 and 3, respectively:

1. Subproject #1 in Erenhot

a. Air Quality

344 Odorous gases will be generated in the solid waste transfer station under Component 3, which involves the construction of a waste collection and transfer station. The gases of NH3 and H2S generated during the waste transfer are estimated to 68 kg/d and 9.2 kg/d, respectively. To reduce the odor impact, equipment for dust removal and odor removal will be installed at the waste transfer station. 345 With the installation of odor removal equipment, the impact of the components in Subproject 1 on odor and air pollution during operation is anticipate to be minor.

b. Wastewater

346 Wastewaters generated from the component of Erenhot International Traditional Chinese and Mongolian Medicine Hospital in Subproject 1 will include domestic wastewater and medical wastewater. The mitigation measures will include the following.

i) Domestic wastewater will be treated in digestion tank and discharged to the municipal sewerage system;

ii) Wastewater from canteen will be treated in oil separation tank and discharged to the municipal sewerage system;

iii) Medical wastewater will be pre-treated in the WWTP within the hospital to meet the effluent standard of medical water pollutants (GB18466-2005) and then discharged into the municipal sewerage system to the city WWTP for further treatment and disposal by the municipality.

106

c. Noise

347 The proposed component of Inspection Area Construction for the Sino-Mongolian Erenhot-Zamyn Uud ECZ under Subproject 1 will be constructed in a new area, where there are no existing sensitive receptors. The traffic noise has no significant impact to the environment.

348 The following noise attenuation and protection measures will be implemented during the operation stage:

i) Low-noise pavement materials shall be used for road maintenance when possible;

ii) Noise monitoring will be undertaken at the locations and frequencies indicated in the EMP by the four local EMSs;

iii) Ambient noise monitoring will be mandated to determine whether mitigation measures will be required for sites where noise levels are expected to exceed by more than 3 dB(A);

iv) Trees and shrubs will be planted as soon as possible along the proposed roadsides after construction; as far as possible, native species of local provenance (i.e. seedlings from the local area, not imported from elsewhere) will be used;

v) Makes appropriate investment to construct acoustic buffering facilities, such as soundproof windows and sound barriers where applicable;

vi) Low-noise equipment will be used as far as possible;

vii) All equipment will be properly maintained in order to minimize noise;

viii) Appropriate noise PPE will be provided to the workers who are likely to be exposed to high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S; and

ix) Layout for subproject site will be reasonable planned to reduce noise.

d. Solid Waste

349 During operation, the subprojects will generate MSW such as paper, cardboard, plastics, and general refuse in routine activities. The amount of MSW to be disposed can be reduced through the application of 3R (reduce, reuse, and recycle) methods. MSW shall be segregated into biodegradable and non-biodegradable wastes; these wastes will be stored in segregated bins and removed as required. Other solid wastes will be removed by sanitary contractors on a regular basis and disposed to designated municipal landfill sites.

350 During operation, medical waste will be generated from the Erenhot International Traditional Chinese and Mongolian Medicine Hospital (Component 4 of Subproject 1). The medical waste will be sorted and stored in special containers in a temporal medical waste storage site. The medical waste will be collected and transferred by a certificated company and incinerated in the existing Erenhot Medical Waste Incineration Plant.

107

e. Water Resources

351 The water balance of Subproject 1 is presented in Figure V-8..


Figure V-8: Illustration of Water Balance of Subproject 1

352 The daily consumption of municipal water supply by Subproject 1 is estimated to be 526.16 m3 and the annual water consumption is 0.192 million m3. Erenhot Municipality currently has the Qiharigetu water plant that provides an annual water supply up to 6.695 million m3 to Erenhot. In 2018, the annual domestic water consumption by Erenhot Municipality was 5.512 million m3. This indicates that the Qiharigetu water plant has an extra water supply capacity of 1.183 million m3 per year, which is sufficient to meet the water demand of 0.192 million m3 per year by the Tranche 1 projects in Erenhot.

353 In addition, reclaimed water from the Erenhot WWTP can be utilized for landscaping and greening irrigation, which will in turn help reduce the demand of Erenhot for water supply. In 2018, the total reclaimed water in Erenhot was 3.34 million m3, of which 0.5 million m3 was lost via evaporation, 1.25 million m3 was used for landscaping irrigation, 1.22 million m3 was used in nursery gardens and the unused reclaimed water was 0.42 million m3.

354 The consumption of reclaimed water by Subproject 1 of Tranche 1 is estimated to be 0.028 million m3 per year, which is significantly less than the remaining capacity of 0.42 million m3 reclaimed water per year. This indicates that the supply capacity of reclaimed water by Erenhot Municipality is sufficient to meet the water demand of Subproject 1.

355 The main water supply sources of Erenhot are the Saiwusu and Qiharigetu water resources. The annual availability of the Saiwusu water resource is 1.38 million m3. Because the alkalinity of the Saiwusu water resource is high, the water from the Saiwusu water resource is now mainly used for irrigation. In 2018, the annual irrigation water consumption was 0.53

Municipal

water

Domestic water for

component 1

Domestic water for

component 1

Domestic water for

component 4

Domestic water for

component 4

491.06

30.35

Loss 6.7

6.55

Loss 0.11

Loss 98.21

526.16

Unit: m3/d

Wastewater

392.85

Wastewater

24.28 WWTP of

hospital

WWTP of

hospital

Domestic water for

component 3

Domestic water for

component 3

Wastewater

6.44

Septic tankSeptic tank


Erenhot

WWTP

Erenhot

WWTP

Landscape water for

component 1

Landscape water for

component 1

109

80

Loss 80

Loss 109

Landscape water for

component 2

Landscape water for

component 2

Reclaimed

water

189

108

million m3.

356 The annual availability of the Qiharigetu water resource is 10.887 million m3 for domestic use. The Qiharigetu water resource has a capacity to supply 6.695 million m3 of water to Erenhot annually. In 2018, the annual domestic water consumption by Erenhot was 5.512 million m3, which was smaller than the supply capacity of the Qiharigetu water resource. This indicates that the water supply capacity of Erenhot Municipality is sufficient to meet the water demand by the city.

2. Subproject #2 in Mandula

a. Air Quality

357 In Subproject 2, concentrations of NO2 and CO are the parameters designated by the EIA Institute for assessing the emission impact on air quality. The baseline monitoring indicates that the average concentration of NO2 in the project city met Grade II of the PRC Ambient Air Quality Standard of GB3096-2012 (see baseline data in Chapter IV of this project IEE).

358 Base on the FSR for the road construction component (Component 1: Expansion of port freight passage roads in Subproject 2), the traffic volume is projected to be 678/d in 2025 and 1,002/d in 2030. There are no existing sensitive receptors in the project area of proposed road expansion. The traffic emission is anticipated to have no significant impact on air quality.

359 Mitigating air pollution. The control of vehicle emissions on the project roads is closely related to the policies and measures for emission control of IMAR and the PRC. Therefore, the vehicle emission control measures under the infrastructure components of the project city should be considered in the context of IMAR and national policies and measures for vehicle emission control. Trucks and other transportation vehicles should preferably use low-sulphur diesel as fuel.

360 In 2005, the PRC promulgated the “Limits and Measurement Methods for Emissions of Pollutants from Light-duty Vehicles (grade III, grade IV)” (GB18352.3-2005), which became effective on 1st July 2007. The local EEBs and local Traffic Management Bureaus are in charge of implementing all the policies and measures for vehicle emission control formulated by the state and IMAR authorities. Corresponding measures are needed to control the emission of exhausting pollutants from vehicles driven on the project roads.

361 During operation, the dust will be generated from the newly built coal storage areas and coal unloading areas of the service facilities in the International Highway Logistic Park. These coal unloading areas are enclosed and installed with water spraying equipment to reduce the dust emission. Also during operation, volatile organic carbon (VOC) and particulate matters (PM) will be generated during painting in the vehicle repair center. These pollutants will be treated by ultraviolet photolysis process to meet the Class II standard on Integrated emission of air pollutants (GB 16297-1996) prior to being discharged through a stack of 15m in height.

362 Overall, the impact of the components in Subproject 2 on air pollution during operation is anticipated to be minor with the mitigation measures implemented.

b. Wastewater

363 During operation, wastewater generated was mainly domestic waste. The domestic wastewater will be treated by septic tank first and treated in reclaimed water treatment equipment, then recycled as landscape water. The reclaimed water treatment process will be facultative anaerobic membrane bioreactor and the capacity will be 200 m3/d.

109

c. Noise

364 The noise of the subproject will be from the operation of vehicles on the road and equipment in the newly constructed buildings under the project.

365 The following noise attenuation and protection measures will be implemented during the operation stage:







vii) All equipment will be properly maintained in order to minimize noise;



d. Solid Waste

366 The subproject during operation will produce solid wastes from building facilities and the vehicle repair center.

367 Domestic waste will be routinely collected with garbage bins by the local sanitation department for recycling, if possible, or for final disposal at the Mandula landfill. Waste generated from the vehicle repair center will be sorted. Recyclable wastes such as tires, motor parts will be recycled. Hazardous wastes such as waste paint, paint containers, oily wastes, will be collected, transported and treated by a certificated hazardous waste treatment company.

e. Water Resources

368 The water balance of the subproject is presented in Figure V-9.

110


Figure V-9: Water Balance of subproject 2

369 The daily consumption of municipal water supply by Subproject 2 is estimated to be 189 m3. Mandula Port currently has a water supply capacity of 1,500 m3 per day. In 2018, the domestic water consumption by Mandula Port was about 300 m3 per day. This indicates that Mandula Port has an adequate water supply capacity to meet the water demand by Subproject 2 of Tranche 1 in Mandula.

370 Consumption of the reclaimed water by Subproject 2 of Tranche 1 is estimated to be 62 m3 per day. Wastewater generated by Subproject 2 will be 133 m3/d and will all be treated into reclaimed water and recycled for landscaping use, which indicates that the demand for reclaimed water by Subproject 2 can be met.

3. Subproject #3 in Baotou Municipality

a. Air Quality

371 For Subproject 3, odor will be generated from the operation of the five sheep breeding farms, the animal quarantine station and the sheep slaughtering and processing facility.

372 The main odorous pollutants of Subproject 3 are NH3 and H2S. To assess the dispersion of the odorous pollutants, an atmospheric dispersion of NH3 and H2S gases was modelled using an atmospheric dispersion model, AERSCREEN, which was developed by the US EPA. The AERSCREEN model is an air dispersion screening model based on AERMOD. The odor emissions from the seven components are presented in Table V-9.

Municipal

water

Domestic water for

component 2

Domestic water for

component 2

Domestic water for

component 3

Domestic water for

component 3

155.92

12

Loss 2.4

21.9

Loss 21.9

Loss 311.18

189.82

Unit: m3/d

Wastewater

124.74

Wastewater 9


Dust control water

for component 3

Dust control water

for component 3


Reclaimed

water

treatment

equipment

Reclaimed

water

treatment

equipment

Landscape water for

component 2

Landscape water for

component 2

46.2

15.8

Loss 15.8

Loss 46.2

Landscape water for

component 32

Landscape water for

component 32

Reclaimed

water

62.0

111

Table V-9: Estimated Odor Emissions from Seven Components of Subprojects

Item Pollution source

Surface source Emission rate

(kg/h)

Length (m)

Width (m)

Height(m) NH3 H2S

No.1 farming base

Sheep house 414.0 233.1 4.5 0.0115 0.001 Temporary feces storage

place 13 6 2 0.0006 0.00006

No.2 farming base


place 13 6 2 0.0006 0.00006

No.3 farming base


place 10 8 2 0.0004 0.00004

No.4 farming base


place 12 10 2 0.0008 0.00008

No.5 farming base

Sheep house 297 224 4.5 0.007 0.001 Temporary feces storage

place 13 6 2 0.0004 0.00004

Quarantine station


place 13 6 2 0.001 0.0001

Slaughtering and

processing logistics base

Temporary sheep house 66 27 3 0.027 0.005

Slaughtering workshop 0.6 0.6 12 0.037 0.007


373 The modelling results are summarized in Table V-10. Based on the air dispersion modelling results, the odor impacts of the project components in Subproject 3 will be minor.

374 The following mitigation measures will be implemented during the operation stage:

i) Feces in sheep houses will be cleaned regularly by dry clean method. Ventilation of sheep houses will be improved;

ii) Temporary storage places for feces from healthy sheep will be installed with ceilings, windbreaks and intercepting drains. These storage places will have leakage and overflow prevention measures;

iii) Derating and disinfection of the sheep houses will be improved;

iv) Add deodorant to the fodder;

v) Layout of the breeding bases, animal quarantine station and slaughtering and processing logistics base be reasonable planned to reduce odor diffusion;

vi) Odor gas treatment facilities will be utilized in the slaughtering and processing logistics base to reduce odor diffusion; and

vii) Coolant will not be ozone depleting substance and will have low greenhouse impact.

112

Table V-10: Summary of Air Dispersion Modeling Results for Seven Components of Subproject 3

Item Source Pollutants Maximum

concentration (mg/m3)

Distance (m)

Ratio of limit (%)

No.1 farming base Sheep house

NH3 0.01052 289 5.26 H2S 0.0008692 289 8.69

Temporary feces storage place

NH3 0.008199 8 4.10 H2S 0.0008199 8 8.20


NH3 0.005455 216 2.73 H2S 0.0004457 216 4.46


NH3 0.008199 8 4.10 H2S 0.0008199 8 8.20


NH3 0.004082 271 2.04 H2S 0.0005833 271 5.83


NH3 0.003705 6 1.85 H2S 0.0003705 6 3.71


NH3 0.0023586 314 1.18 H2S 0.0004214 314 4.21


NH3 0.002541 75 0.13 H2S 0.0001694 75 1.69


NH3 0.00622 198 3.11 H2S 0.00098 198 9.82


NH3 0.0001368 253 0.01 H2S 8.34E-06 253 0.01

Quarantine station Sheep house

NH3 0.000842 286 5.21% H2S 0.0002674 286 2.67%


NH3 0.005213 89 0.26% H2S 0.000187 89 1.87%

Slaughtering and processing logistics

base

Temporary sheep house

NH3 0.01204 100 6.02% H2S 0.000241 100 2.41%

Slaughtering workshop

NH3 0.0009776 113 0.49% H2S 0.000185 113 1.85%


b. Wastewater

375 The wastewater generated from Subproject 3 includes domestic wastewater and production wastewater.

376 For the five sheep breeding farms and the animal quarantine station, the domestic wastewater and production wastewater will be treated in wastewater treatment units within the facilities and then utilized as landscape irrigation water without discharge to external environment.

377 For the slaughtering and processing plant, domestic wastewater and production wastewater will be treated in the wastewater treatment station within the plant. Part of the treated water will then be further treated through tertiary treatment into reclaimed water used for landscape irrigation. The remaining wastewater will be discharged to the municipal sewer mains for further treatment by the nearby municipal WWTP.

c. Groundwater

378 To prevent ground water pollution, the following mitigation measures will be implemented.

i) Wastewater collection will be carried out with implementation of leak proofing materials and overflow prevention measures in waste collection ditches and basins;

113

ii) Storm water and sewage will be drained separately.

iii) Temporary feces storage basins and sheep houses will be installed with ceilings, windbreaks and intercepting drains. These basins will have leakage proofing treatment and overflow prevention measures.

iv) A clay layer with a thickness of 25 cm will be applied to sheep breeding houses at the depth of 35cm beneath the sheepfold to prevent the infiltration of urine into groundwater. The soil cover on top of the clay layer will be regularly removed and replaced. Dry feces will be regularly cleaned with the dry-cleaning method.

v) Water proof measures will be implemented on medical waste storage rooms, and temporary feces storage basins. High density polyethylene with a thickness of 2-mm will be installed on the storage basins and facility for water proofing and leakage prevention.

d. Noise

379 The noise will mainly be generated from equipment operation. The following noise attenuation and protection measures will be implemented during the operation stage:







vii) All equipment will be properly maintained to minimize noise;



e. Solid Waste

380 During operation, the following mitigation measures will be implemented for solid waste management in operating the five sheep breeding bases, the animal quarantine station and the slaughtering and processing plant:

i) Domestic waste containers will be provided at work sites. Domestic waste will be collected on a regular basis by local sanitation departments and transported for recycling, reuse, or disposal at a licensed landfill in accordance with relevant PRC regulations and requirements;

114

ii) Feces in sheep houses will be cleaned regularly with the dry clean method. Collected feces will be transported to nearby fertilizer production plants to produce organic fertilizer.

iii) Sick sheep will be quarantined and sheep houses will be disinfected. The sheep in the same flock will be put under observation and treatment to avoid being infected. Medical care will be provided to sick sheep by veterinarians based at the five breeding bases and animal quarantine station. The waste from sick sheep including feces will be treated in a designated animal waste treatment landfill;

iv) Dead or sick sheep will be treated in designated animal waste treatment landfills, which will be constructed at the No.4 sheep breeding base, No.5 breeding base, and animal quarantine station, respectively, following PRC’s regulations and standards. The one constructed at the No.4 sheep breeding base will also receive and treat dead sheep from the No.1, 2 and 3 sheep breeding bases;

v) Medical wastes will be temporally stored at a storage facility following PRC’s GB18597-2001. Medical wastes will be transported and treated by an independent company certificated for medical waste treatment;

vi) Feces generated in the slaughtering and processing plant will be transported to nearby fertilizer production plants to produce organic fertilizer;

vii) Inedible tissues, innards, bones, minced meat and waste meat generated at the slaughtering and processing plant will be transported to nearby independent, certificated companies for processing and treatment to produce pet food and oil.

f. Water Resources

381 The water balance for the project components in Subproject 3 is shown from Figure V-10 to Figure V-15.

Source: TRTA consultants. Figure V-10: Water Balance of No. 1 and No.2 Sheep Farming Bases

Sheep drinking

water

Sheep drinking

water

Vehicle sterilization

water


water

Vehicle

washing water

Vehicle

washing water

Domestic

water

Domestic

water

131.2

0.45

Loss 0.45

Loss 0.153

Loss 0.014

Wastewater

0.056 Wastewater

treatment

Wastewater

treatment

Medicine waterMedicine water

0.08

Loss 0.08

0.07

10.2

Loss 26.24

176.16

Canteen Canteen 1.36

Wastewater

0.072

Unit: m3/d

UrineUrine104.96

Loss 83.968

20.992FecesFeces

To produce

organic fertilizer

SterilizationSterilization


Wastewater

8.67

Oil separation

tank

Oil separation

tank

Wastewater

1.156

Reclaimed water

36.149 Landscape

water

32.8Sheep sterilization

water

Sheep sterilization

water

Loss 0.204

Loss 6.56Wastewater

26.24

Municipal

water

http://www.youdao.com/w/quarantine/#keyfrom=E2Ctranslation

115

Source: TRTA consultants. Figure V-11: Water Balance of No. 3 Sheep Farming Base


Municipal

water

Sheep drinking

water

Sheep drinking

water


water


water

Vehicle

washing water

Vehicle

washing water

Domestic

water

Domestic

water

42.664

0.225

Loss 0.225

Loss 0.765

Loss 0.007

Wastewater

0.028 Wastewater

treatment

Wastewater

treatment


0.04

Loss 0.004

0.035

5.1

Loss 8.533

59.41


Wastewater

0.036

Unit: m3/d

UrineUrine34.131

Loss 27.305

6.826 FecesFeces

To produce

organic fertilizer



Wastewater

4.335

Oil separation

tank

Oil separation

tank

Wastewater

0.578

Reclaimed water

13.51 Landscape

water


water

Sheep sterilization

water

Loss 0.102

Loss 2.133Wastewater

8.533

Municipal

water

Sheep drinking

water

Sheep drinking

water


water


water

Vehicle

washing water

Vehicle

washing water

Domestic

water

Domestic

water

80

0.338

Loss 0.38

Loss 2.67

Loss 0.0105

Wastewater

0.042 Wastewater

treatment

Wastewater

treatment


0.06

Loss 0.006

0.0525

17.85

Loss 16

120.68


Wastewater

0.054

Unit: m3/d

UrineUrine64

Loss 51.2

12.8 FecesFeces

To produce

organic fertilizer



Wastewater

15.17

Oil separation

tank

Oil separation

tank

Wastewater

2.023

Reclaimed water

33.29 Landscape

water

20Sheep sterilization

water

Sheep sterilization

water

Loss 0.357

Loss 4Wastewater

16

116



Sheep drinking

water

Sheep drinking

water


water


water

Vehicle

washing water

Vehicle

washing water

Domestic

water

Domestic

water

42.664

0.225

Loss 0.225

Loss 0.765

Loss 0.007

Wastewater

0.028 Wastewater

treatment

Wastewater

treatment


0.04

Loss 0.004

0.035

5.1

Loss 8.533

59.41


Wastewater

0.036

Unit: m3/d

UrineUrine34.131

Loss 27.305

6.826 FecesFeces

To produce

organic fertilizer



Wastewater

4.335

Oil separation

tank

Oil separation

tank

Wastewater

0.578

Reclaimed water

13.51 Landscape

water


water

Sheep sterilization

water

Loss 0.102


8.533

Municipal

water

Sheep drinking

water

Sheep drinking

water


water


water

Vehicle

washing water

Vehicle

washing water

Domestic

water

Domestic

water

42.664

0.225

Loss 0.225

Loss 0.765

Loss 0.007

Wastewater

0.028 Wastewater

treatment

Wastewater

treatment


0.04

Loss 0.004

0.035

5.1

Loss 8.533

59.41


Wastewater

0.036

Unit: m3/d

UrineUrine34.131

Loss 27.305

6.826 FecesFeces

To produce

organic fertilizer



Wastewater

4.335

Oil separation

tank

Oil separation

tank

Wastewater

0.578

Reclaimed water

13.51 Landscape

water


water

Sheep sterilization

water

Loss 0.102


8.533

Municipal

water

117

Figure V-14: Water Balance of Animal Quarantine Station

Source: TRTA consultants. Figure V-15: Water Balance of Slaughtering and processing logistics base

382 The total water consumption by all the project components under Subproject 3 is shown in Table V-11.

383 The source of water supply during the operation of the subproject components under Subproject 3 will be from the city water supply pipelines operated by Baotou Municipality.

384 Component 1 and Component 3 of Subproject 3 will introduce a new type of sheep, Australian White Sheep, for breeding operation to replace the existing local types of sheep in these sheep breeding bases. Since the new type of Australian White Sheep will not create

Municipal

water

551.7

Prepared mutton

production

Prepared mutton

production

Steam boilerSteam boiler

Domestic

water

Domestic

water

42.4

Loss 5.8

Loss 3.3

Loss 0.65

Wastewater

0.25

Cooked mutton

production

Cooked mutton

production

Loss 8.5

2.5

16.5

ChillerChiller10

Wastewater

33.9

Unit: m3/d


Wastewater

13.2

Circulation

water 80

Circulation

water 80

Wastewater 4

Reclaimed water

180.9

Loss 6

80

90

Steam 3.5

Cooked

mutton

production

Cooked

mutton

production

Loss 0.5

Condensate

water 1.9

Condensate

water 1.9

28.4

Wastewater

22.6

Wastewater

1.1

Wastewater

treatment

workshop

551.7

Wastewater

treatment

workshop

551.7

SlaughteringSlaughtering

Loss 88.3

438.8

Wastewater

350.1

Wastewater

17.45

Workshop cleanWorkshop clean97.3

Sheepfold cleanSheepfold clean

78.6

To municipal

sewer system

370.8

Loss 12.4

Wastewater

66.2

Loss 19.5

Wastewater

77.8

5LandscapeLandscape

118

additional water demand than the existing local sheep in the breeding bases, the proposed Subproject 3 on sheep breeding will not require more water than what is currently consumed. The water demand for sheep breeding in the subproject areas will not change and an additional water supply capacity by Baotou Municipality is not needed for operating the subproject components under Subproject 3.

Table V-11:Water Consumption and Wastewater Emission Unit: m3/d

Item Water

Consumption Water Supply

Source

Wastewater Water

Generation

Wastewater Discharge

No.1 and No.2 farming base

176.16 Municipal water 36.149 0

No.3 farming base 59.41 Municipal water 13.51 0 No.4 farming base 120.68 Municipal water 33.29 0 No.5 farming base 59.41 Municipal water 13.51 0 Quarantine station 59.41 Municipal water 13.51 0 Slaughtering and

processing logistics base 538.6 Municipal water 551.7 370.8

Total 1013.67 NA 661.67 370.8 Source: TRTA consultants.

4. Health and Safety

385 Traffic safety. The concerns over the community safety of the proposed roads have been thoroughly examined during the TRTA. All roads have separate pedestrian sidewalks. Pedestrian-priority traffic lights, crosswalks (zebra lines) will be established at all intersections.

386 The mitigation measures related to the road construction are listed as below.

i) Strictly enforce traffic laws to improve road safety and reduce traffic accidents. ii) Various signs will be installed for road safety and safety drive; iii) Improve the safety facilities of the traffic roads; iv) Carry out public awareness education campaigns v) Adopt traffic controls when necessary. vi) Prepare an emergency response plan for accidents and emergencies for review

and appraisal.

387 Community and Occupational Health and Safety. To mitigate potential health and safety risks to workers and communities, the following measures will be taken:

i) The nearby communities will be informed of the potential risks and the emergency response plan.

ii) PPE including goggles, gloves, safety shoes will be provided to worker. Masks will be provided to workers working with odor. Noise protection equipment will be provided to workers in high-noise area.

iii) Provide training to workers on occupational health and safety, and emergency response.

iv) Subproject site will be fence with restricted public access.

388 Emergency response plan. Emergency risk and response plans will be established in accordance with the “National Environmental Emergency Plan” (24 January 2006) and other relevant PRC laws, regulations and standards. The emergency risk and response plans will include measures contained in the World Bank EHS guidelines with respect to occupational and community health and safety. The nearby communities will be informed of the potential risks and the emergency response plan.

119

E. Cumulative, Indirect and Induce Impacts

389 Cumulative impacts are defined as the combination of multiple impacts from the existing projects, the proposed project, and anticipated future projects that may result in adverse and/or beneficial impacts that would not be expected for a single standalone project. They could arise from other projects in the vicinity that are being constructed concurrently with the construction stage of this Project.

390 Construction related cumulative impacts, if any, will be effectively minimized by adopting proper mitigation measures, including: (i) coordination between all project components and other projects in the area of influence in terms of construction schedule, possible access road and borrow/disposal sites and spoil sharing; (ii) contractors will develop material transport plan with consultation of local road management authority and local community; (iii) enforcement of good construction management to minimize dust, noise and waste generation; (iv) education of construction workers to minimize social disturbance and cultural conflict; (vi) provision of temporary access to local traffic; (vii) proper maintenance of the access roads and timely restoration/strengthening upon completion. With effective implementation of good construction management measures, these common construction-related cumulative impacts can be adequately mitigated to acceptable levels.

391 Induced impacts are adverse and/or beneficial impacts on areas and communities from unintended but predictable developments caused by a project that may occur later or at a different location. Once the project begins operation, it will result in improved connectivity between IMAR and Mongolia and provide better infrastructures to improve the cross-border trade. Their quality of life at the project sites of IMAR and Mongolia will be improved due to enhanced access to goods, services and social infrastructures.

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VI. ANALYSIS OF ALTERNATIVES

392 Various alternatives for each component were proposed, screened, and compared against the technical, economic, social, and environmental criteria. The primary objective with respect to environmental criteria was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits. The range of alternatives considered depends on the infrastructure sector and its characteristics, and the following key environmental factors were used in comparing the alternatives: (i) resettlement and land occupation; (ii) minimization of community disturbance; (iii) adaptation to local context (climatic constraints, earth, etc.); (iv) minimize facilities energy consumption, and (v) eco-friendly. The alternative analysis also included the no-project alternative.

A. No Project Alternative

393 The project has four outputs to improve regional cooperation and integration opportunities in border areas in IMAR linking PRC and Mongolia. Without the project, the border areas in IMAR will continue to have difficulties in attracting investments for SMEs due to lack of infrastructure and services in the border economic zones, lack of new technologies such as e-commerce for accessing markets at and beyond the borders, inefficient cross-border financial transactions and settlement, and inability in customs inspection and clearance to handle the fast-growing cross-border trade.

1. Erenhot subproject (Subproject 1)

394 The alternative analysis of the Erenhot subproject is presented in Table VI-1.

Table VI-1: No Project Alternative Analysis Component

No. Subproject benefits and impacts No Project benefits and impacts

1

(1) Promote the cross-border trade; (2) Improve the communication between Erenhot

and Mongolia; (3) Promote the capacity of regional cooperation of

Erenhot; (4) Improve the living conditions of persons at border

regions; (5) Impacts during construction and operation; (6) Clean energy wind power will be utilized for

heating.

(1) Impacts during construction and operation will not occur;

(2) The cross-border trade will not be developed quickly;

(3) living conditions of persons at border regions will not be improved quickly;

(4) Coal will be utilized for heating.

2 (1) Ecology restoration and improve environment; (2) Impacts during construction and operation.


(2) Environment especially sand storm will not be improved.

3

(1) Improve the sanitation facilities in the ECZ; (2) The cloud platform will improve the waste

collection efficiency and monitor the waste classification, collection and transfer;

(3) Provide incentives by rewarding people for

recycling；

(4) Impacts during construction and operation.


(2) Waste recycling will be a challenge

4

(1) Provide better medical service to persons at border regions especially at Mongolia;

(2) Improve health of persons at border regions

especially at Mongolia；



(2) The increased doctor-seeing demand can’t be met


121

395 Based on the above information, although the subproject will have impacts during construction and operation, the impacts can be avoided or reduce with mitigation measures. Implementation of the subproject will bring in long term positive social and environmental benefits. For these reasons the “no project” alternative is considered unacceptable.

2. Mandula subproject (Subproject 2)

396 The alternative analysis of the Mandula subproject is presented in Table VI-2.

Table VI-2: No Project Alternative Analysis

Subproject benefits and impacts “No Project” benefits and impacts

(1) Promote the cross-border trade; (2) Improve the communication between Mandula and

Mongolia; (3) Promote the capacity of regional cooperation of

Mandula; (4) Improve the living conditions of persons at border

regions;



(2) The cross-border trade will not be developed quickly;

(3) Living conditions of persons at border regions will not be improved quickly.


397 Based on the above information, although the subproject will have impacts during construction and operation, the impacts can be avoided or reduce with mitigation measures. Implementation of the subproject will bring in long term positive social and environmental benefits. For these reasons the “no project” alternative is considered unacceptable.

3. Xiaoweiyang subproject (Subproject 3)

398 The subproject will introduce Australian White Sheep to promote new sheep production through the use of embryo transfer, artificial insemination and estrus techniques to breed new varieties. The subproject will apply blockchain technology to establish a traceability system for the entire industry chain. At the food store and food sales end, consumers can achieve the goals that quality can be monitored, source can be traced, flow can be tracked, information can be saved, and responsibility can be traced through mobile APP and WeChat scanning code.

399 The subproject will also establish a Poverty Alleviation Program to integrate poor households into the value chain. Increasing employment opportunities for poor and weak herders and driving poor households out of poverty and income.

400 For these reasons the “no project” alternative is considered unacceptable.

B. Alternatives Considered

401 The buildings and facilities of Subproject 1 and Subproject 2 will contribute to improve cross-border trade and communication by providing better services, environment and infrastructures. The scope in the consideration of alternative sites was very much limited because the customs buildings are included in Subprojects 1 and 2.

402 The five breeding bases of Subproject 3 are already existed, then there is no alternative for the location selection.

403 Slaughtering and processing logistics base will generate a lot of wastewater during operation which requires a municipal sewer system and WWTP. The proposed site of the logistics base is located at existing industrial park with a municipal sewer system and WWTP and is not far away from the existing breeding bases and the there is no alternative for the

122

location selection.

404 Animal quarantine station of Subproject 3 will require a good transportation condition, good infrastructures and will not be far away from the customs, the consideration of alternative sites was very much limited. In the FSRs, advanced technology, suitable renewable energy, advances sheep breeding and water recyclable are utilized by all subprojects.

405 For Component 3 of the Erenhot subproject, the alternative analysis of waste compressing technology is presented in Table VI-3.

406 Based on the operation experiences of existing waste transfer station, there is a lot of sand and stone in waste of Erenhot, therefore, horizontal compressors are easy to break down. Container compressors are suitable for large scale of waste transfer station. Therefore, the component 3 of Erenhot subproject will use vertical compressor.

C. Overall Alternative Analysis

407 Based on the analysis of alternatives, the Tranche 1 subprojects have selected the most appropriate and sustainable methods and technologies for the investment loan.

Table VI-3: Comparison of Waste Compressing Different Technologies Item Vertical compressor Horizontal compressor Container compressor

Appearance

Transfer vehicle

Closed vehicle

Closed vehicle

Hook arm vehicle

Maximum capacity

60t/d 100t/d 120t/d

Weight 8-14t 8-10t 8-16t Required

supporting equipment for one transfer

station

One compressor with one vehicle

One compressor with one vehicle

Two compressors with one vehicle and three

containers

Power 18 kW 22 kW 32kW Floor area 20m2 42m2 35m2 Investment 1.6 million CNY 2.8 million CNY 3.5 million CNY

Environment issues

Limited odor impacts Limited odor impacts Limited odor impacts

Disadvantage 1. A pit will be built, hard to clean

1. High power consumption; 2. Lower compressor power and easy to break under High intensity operation

1. High investment; 2. High power consumption


123

VII. INFORMATION DISCLOSURE AND CONSULTATIONS

A. PRC and ADB Requirements for Information Disclosure and Public Consultation

408 Meaningful participation and consultation during project planning, feasibility study, design and implementation is an important environment safeguards requirement. It can directly reflect the public’s perceptions of environmental quality in the project’s area of influence.

409 PRC Requirements. Relevant provisions in the PRC “Environmental Protection Law (2003)” and the “Regulations on Environmental Protection Management of Construction Projects (No. 253 Order of the State Council)” require that an EIA study for a construction project shall solicit opinions from affected residents, as well as other organizations and stakeholders concerned. However, the requirements for public consultation are different from various sectors and projects. For an environmental Category A project, two rounds of public consultations are required, while for a Category B project, only a simplified tabular EIA is required without requirements for any public consultation.

410 Public participation and environmental information disclosure provisions are among the most significant changes introduced in the amended Environmental Protection Law (2015). The legislative framework also includes decrees on the methods for public participation in environmental protection, information disclosure on construction project EIAs by government, preparation of EIA summaries for public disclosure, and technical guidelines for public participation in EIAs. The public disclosure and consultation process undertaken during the preparation of the domestic EIA was undertaken in compliance with the relevant PRC requirements.

411 ADB Requirements. In order to make key documents widely available to the general public, ADB’s SPS requires submission of finalized EIA for Category A projects, and the final IEE for Category B projects to ADB for posting on ADB website. ADB’s SPS requires that borrowers to take a proactive disclosure approach and to provide relevant information from environmental assessment documentation directly to affected peoples and stakeholders. The SPS also requires that the borrower to carry out meaningful consultation with affected people and other concerned stakeholders, including civil society, and facilitate their informed participation. Meaningful consultation goes beyond information disclosure. It involves two-way communication between the borrower and the affected communities and stakeholders, and active participation of affected communities and stakeholders in project design and implementation. For environment category B projects, such consultations will necessarily include consultations at the early stage of EIA field work and when the draft EIA report is available during project preparation, and before project appraisal by ADB.

412 ADB’s SPS (2009) has specific requirements for information disclosure and public consultation. Information disclosure involves delivering information about a proposed project to the public and to affected communities and other stakeholders, beginning early in the project cycle and continuing throughout the life of the project. Information disclosure is intended to facilitate constructive engagement with affected communities and stakeholders over the life of the project.

413 The ADB’s SPS requires that borrowers take a proactive disclosure approach and provide relevant information from environmental assessment documentation directly to affected peoples and stakeholders. In addition, to make key documents widely available to the public, the SPS requires submission of following documents for disclosure on ADB’s website as follows (Category B Projects):

(i) final IEE (upon receipt of Board approval, whichever is earlier)

124

(ii) a new or updated IEE, if required during project implementation (iii) corrective action plans (for major noncompliance, if any) prepared during project

implementation and (iv) environmental monitoring reports.

414 ADB’s SPS also requires that the borrower carry out consultation with affected people and other concerned stakeholders, including civil society, and facilitate their informed participation. Consultations should include presentations on environmental impacts, benefits and mitigation measures, project GRM, and ADB's Accountability Mechanism.

B. Information Disclosure

415 The objective of information disclosure is to facilitate information exchange and constructive engagement with affected communities and stakeholders throughout the whole project. Information disclosure and public consultations were conducted in the subproject cities/towns during the course of domestic EIA preparations and the TRTA in accordance with the PRC Guideline on Public Consultation in EIA and ADB SPS 2009.

416 This IEE will be disclosed on ADB website. All environmental monitoring reports during operation will also be disclosed on ADB website.

417 The subproject in Erenhot was first publicized on August 21, 2019 on the website of Government of Erenhot. The link is http://www.elht.gov.cn/elht_info_2018/bmgk/zfbm/fgw/xxgkml/201908/t20190821_184305.html.

418 The Xiaoweiyang’s subproject was first publicized on July 25, 2019 on the website of Xiaoweiyang Company. The links are: http://www.nmxwy.com/index/content/detail?model=article&navid=22&sid=424, http://www.nmxwy.com/index/content/detail?model=article&navid=22&sid=425, http://www.nmxwy.com/index/content/detail?model=article&navid=22&sid=426 and http://www.nmxwy.com/index/content/detail?model=article&navid=22&sid=427.

419 The subproject in Damaoqi County will be first publicized on September, 2019 on the website of Government of Damaoqi County. The link is http://www.dmlhq.gov.cn/gkxx/zfxxgk.

420 The disclosed information includes the construction project overview, the name and contact information of the construction unit, the name and contact information of the domestic EIA institution undertaking the evaluation work, the working procedures and main work contents of the environmental impact assessment, the DEIA approval procedures, the public participation procedures and programs, and preliminary arrangements for work at each stage, major issues for public comment, main approaches for public comments and announcements.

421 The information disclosure is also implemented near the component sites.

http://www.elht.gov.cn/elht_info_2018/bmgk/zfbm/fgw/xxgkml/201908/t20190821_184305.html

http://www.elht.gov.cn/elht_info_2018/bmgk/zfbm/fgw/xxgkml/201908/t20190821_184305.html

http://www.nmxwy.com/index/content/detail?model=article&navid=22&sid=424




125

Erenhot subproject information disclosure


Figure VII-1: Information Disclosure by Website Posting

126

Xiaoweiyang subproject information disclosure

Source: TRTA Consultants

Figure VII-2: Information Disclosure by Website Posting

127


Figure VII-3: Information Disclosure at Project Component Sites

128

C. Questionnaire Survey

422 During the preparation of domestic EIA and this IEE, the EIA Institutes conducted public consultations in the nearby villages during June to August of 2019. During the public consultations, information on the component contents and status was presented by the EIA Institutes. Information on potential environmental impacts and proposed mitigation measures, the GRM and component benefits was also presented. Questions and discussion meetings were focused on environmental issues and social benefits associated with different components. A questionnaire survey was conducted to seek the views and opinions of affected persons, local communities and government departments, and other stakeholders. The questionnaires contain 31 questions covering environmental issues and opinions towards the projects.

423 The project background information and potential environmental impacts were provided to the stakeholders in separate sheets. During the public consultations, most of the respondents believe that the project components will help increase their income, promote the local economy development and provide more job opportunities to the nearby villages. A 100% of participants supported the project. The most concerned environmental issue from the participants is the potential odor pollution from the sheep breeding bases. Some of the field survey activities are shown in Figure VII-4.

Meeting at Mandula port

Meeting at Mandula Town

Meeting at Erenhot authorities

Public consultation at the hospital

129

Public consultation with the local

community of Erenhot

Public consultation with the leader of Gesumu

of Erenhot

Public consultation at Guyang County

Public consultation at Dengkou

Village,Tuyouqi County

Public consultation at Dasanyanjing


Public consultation at Dushoujiang


130

Public consultation at Xingfu Village,

Guyang County

Public consultation at Natai Village, Tuyouqi

County

Source: TRTA consultants. Figure VII-4: Photos of Public Consultation and Survey Activities

424 A total of 251 questionnaires were distributed in this survey, and 251 valid questionnaires were collected. The recovery rate was 100%. The demographical information of the respondents is shown in Table VII-1, and the key statistical results of the survey are shown in Table VII-2 and Table VII-3.

425 A total of 251 survey questionnaires were distributed and completed. Of those surveyed, 57.0% of the respondents are male and 43.0% of the respondents are female. With regard to education, 25.1% of the participants are below junior school, 18.3% are at junior school, 29.3% are at high school, and 27.1% are at university or above. Regarding occupation, 35.5% of the participants are employees, 42.2% are local farmers, 40.0% are government staff, and 12.4% belong to other categories.

426 All the respondents (100%) support the project and believe that the project could promote local economic development and have a positive attitude towards it. The public participation questionnaire indicates that the implementation of the project has been recognized and accepted by the public. About 96.0% of the respondents are aware of the project after the public consultation. The top 3 issues concerned about the project are ambient air (45.4%), noise (30.3%) and solid waste (12.7%). Most the respondents (97%) are very satisfied with the proposed environmental mitigation measures.

427 Other findings of the public survey include the following:

1) 33.5% of the respondents think the project should promote the use of recyclable resources such as reclaimed water, wind power;

2) 96.0% of the respondents understand the environmental impacts of construction activities (74.9% clearly understand, 12.7% somewhat understand; 8.4%barely understand), while 91.4% of them consider that the dust (39.4%) and noise (35.5%) generated by construction activities is a major environmental concern;

3) All the respondents understand the environmental impacts of project operation (17.9% somewhat understand; 75.3% clearly understand), while all of them are receptive to the operational impact of the project on ambient air, surface water, groundwater, solid waste, ecological environment, acoustic environment, and health and safety issue;

131

4) 98.4% of the respondents are satisfied with the mitigation measures implemented in this project (Very satisfied 84.1%; satisfied, 11.2%; basically satisfied, 3.2%);

5) All the respondents think the project can improve local economic development and support the project construction.

Table VII-1: Demographical Information of Questionnaire Respondents Parameter Indicator No. %

Gender Male 143 57.0%

Female 108 43.0%

Age

Below 30 36 14.3% 31-40 41 16.3% 41-50 71 28.3%

Above 50 103 41.0%

Nationality Han people 215 85.7%

Other 36 14.3%

Education Level

Primary School or Below 63 25.1% Junior school 46 18.3%

High school, including technical secondary school 74 29.5%

Bachelor degree or above, including junior college 68 27.1%

Occupation

Farmer 106 42.2% Employee 89 35.5%

Civil servant 25 10.0% Other 31 12.4%


Table VII-2: Questionnaire Respondents for Different Subproject Components Location Gender Participant No. Percent (%)

Tuyouqi County

Male 57 59.4%

Female 39 40.6%

Guyang County

Male 14 63.6%

Female 8 36.4%

Dmaoqi County

Male 43 59.7%

Female 29 40.3%

Erenhot Male 29 47.5%

Female 32 52.5%

Table VII-3: Statistical Result of Public Consultation Questionnaire

Question Item No. %

1. In your opinion, what are the major environment pollution issues in your areas?

Ambient air 36 14.3% Noise 22 8.8% Surface water 23 9.2% Ground water 26 10.4% Soil 15 6.0% Solid waste 36 14.3% Odor 7 2.8% Risks associated with chemicals and hazardous chemicals

Other concern 86 34.3% 2. Distance between your working place and

project site <1 km 29 11.6% 1-3 km 56 22.3%

132

Question Item No. % 3-5 km 86 34.3% > 5km 80 31.9%

3. Distance between your house and project site

<1 km 12 4.8% 1-3 km 29 11.6% 3-5 km 96 38.2% > 5km 114 45.4%

4. What do you think are the impacts of the existing breeding bases on the surrounding environment?

Ambient air 5 5.2%

Noise 6 6.3% Surface water Ground water Soil Solid waste Odor 11 11.5% Risks associated with community sanitation and occupational safety

Other concern 74 77.1%

5. Are you satisfied with the mitigation measures implemented in this project?

Very satisfied 211 84.1% Satisfied 28 11.2% Basically satisfied 8 3.2% Very disappointed Do not understand 4 1.6%

6. Do you know that the existing breeding bases will cause risks to the surrounding communities?

Yes 55 57.3%

No 39 40.6%

7. If there is any emergency in the existing breeding bases, do you know how to deal with it?

Yes 88 91.7%

No 8 8.3%

8. Do you accept the impact of the existing breeding bases on the surrounding environment and your life?

Yes 92 95.8%

No

Not understand 4 4.2%

9. Do you know this project before this public consultation?

Yes 117 46.6% No 134 53.4%

10. Do you understand environment impacts of this project before this public consultation?

Yes 106 42.2% No 145 57.8% Not clear

11. After this public consultation, are all the potential positive and adverse impacts of the proposed project components clear to you?

Clearly understand 188 74.9% Somewhat understand 32 12.7% Barely understand 21 8.4%

Do not understand 10 4.0%

12. In your opinion, what should be the most critical area that the project should focus on?

Exhaust air efficiency treatment

86 26.3%

Controlling fugitive emissions

Wastewater treatment 54 21.5% Groundwater protection

22 8.8%

Soil protection Chemicals handling Odor control 25 10.0% Make use of recyclable resources

84 33.5%

Noise disturbing to residents

133

Question Item No. % Protection for community health and safety

Protection to workers health and safety

Others

13. Do you understand the potential adverse impacts during the construction of the proposed project?

Clearly understand 58 23.1% Somewhat understand 168 66.9% Barely understand 25 10.0% Do not understand

14. What do you think about the project construction? Do you think it is necessary?

Necessary 234 93.2% Barely necessary 17 6.8% Not necessary It does not matter

15. What would be the major impacts during project construction?

Noise 89 35.5% Dust 109 39.4% Solid waste 35 13.9% Traffic congestion 18 7.2% Others No major impacts 10 4.0%

16. Without mitigation measures, do you accept anticipated construction phase impacts?

Accept Barely accept 10 4.0% Do not accept 241 96.0% Have no idea

17. After learning about mitigation measures during the construction, do you accept anticipated construction phase impacts?

Accept 233 92.8% Barely accept 12 4.8% Do not accept Have no idea 6 2.4%

18. Do you agree with project construction after comprehensive consideration?

Yes 245 97.6% No I do not know 6 2.4%

19. Do you understand all the anticipated environmental adverse impacts of the project during operation?


20. Do you understand all the anticipated health and safety adverse impacts of the project during operation?

Clearly understand 34 13.5% Somewhat understand

212 84.5%

Barely understand 5 2.0% Do not understand

21. Do you understand the proposed mitigation measures during the project operation?


22. Do you accept the impacts to ambient air quality by this project?


23. Do you accept the impacts to surface water quality by this project?

Accept 224 89.2% Barely accept 27 10.8% Do not accept Have no idea

24. Do you accept the impacts to ground water quality by this project?

Accept 231 92.0% Barely accept 20 8.0% Do not accept

134

Question Item No. % Have no idea

25. Do you accept the impacts to acoustic environment quality by this project?


26. Do you accept the solid waste pollution by this project?


27. Do you accept the impacts to ecological environment by this project?


28. Do you accept environment, health, and safety risks caused by this project?


29. What issue do you concern the most?

Ambient air 114 45.4% Noise 76 30.3% Surface water 12 4.8% Ground water Soil Solid waste 32 12.7% Odor 13 5.2% Risks associated with chemicals and hazardous chemicals

Other concern 4 1.6% 30. Do you think construction of this project

can improve local economic development or not?

Yes 251 100% No I do not know

31. Do you support the project? Yes 251 100% No I do not know


Note: 96 questionnaires collected around the five existing farming bases.

D. Future Plans for Public Participation

428 Meaningful consultation to safeguard the environment and local residents will continue before and throughout the construction and operational phases of the Project. The forms of public consultation will include information disclosure on the web sites of the project proponent and relevant government departments, posting of project information on community notice boards, and discussion forums. A dialogue channel will be maintained with the affected public and stakeholders throughout project implementation by continued public consultation. Such dialogue will ensure that public concerns are understood and dealt with in a timely manner. A plan for future consultation during design, construction and operation has been developed, and is presented in the EMP. Future public consultation will be conducted via questionnaires surveys, household visits, workshops, and consultation meetings per schedule or when there are complaints or unanticipated negative environmental impacts.

429 The plan includes public consultation on (i) inspection and monitoring the impacts and mitigation measures during the construction and operation; (ii) evaluating the environmental and economic benefits and social impact; and (iii) consulting with the public after the project completion. The implementing agencies with the support from the IPMO and loan

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implementation consultants will be responsible for organizing the public consultations. The contractors will be required to communicate and consult with the communities in the subprojects’ areas, especially those close to their construction sites. Eye-catching public notice boards shall be set at each construction site to proclaim the purpose of the construction, the duration of disturbance, the responsible entities on-site, including contractor name, construction supervision company (CSC), implementing agency, and the project level GRM. Contact information of all GRM entry points (including community leaders, neighborhood organizations, local authorities, district EEBs, and contractors) and the Project Public Complaints Units (PPCU) will be disclosed on the construction site information boards. The cost for GRM will be included in the IAs’ operation budget.

430 Prior to construction, the implementing agencies will inform the affected people of the planned project interventions and the likely disturbances through information disclosure in the local newspaper. The GRM entry points will be briefed, which will in turn ensure that information is disseminated to project affected areas. During construction, affected people will be consulted at least once a year through formal questionnaire surveys and a public workshop. The surveys and the public workshop will be conducted by the implementing agencies supported by environment consultant. On-site environmental engineers of the construction contractors or construction supervision companies will conduct informal interviews with affected people on a regular basis. Public consultation will focus on complaints about community disturbances from construction activities, such as construction noise, dust, solid waste and wastewater, as well as public concerns about soil erosion, air pollution and water pollution.

431 The IPMO and IA will be responsible for organizing the public consultations, with the support of the PIC-ES and the project management consultant (PMC) team. The contractors will be required to communicate and consult with the communities in the project area of influence, especially those near the stations. Clearly visible public notice boards will be set at each work site to provide information on the purpose of project activities, the duration of disturbance, the responsible entities on-site (contractors, IA), and the project level Grievance Redress Mechanism (GRM).

432 Contact information on all the GRM entry points and the IPMO complaint center hotline will be disclosed on the information boards of construction sites. Consultation will focus on public nuisances from construction and operational activities, such as noise, dust, traffic disturbance, and public concerns about the environmental and social impacts.

433 Future consultation and participation will also include (i) involvement of affected people in discussion forums during inspection and monitoring of the EMP implementation during construction and operational phases; (ii) participatory evaluation of the environmental and social-economic benefits and impacts in these forums; and (iii) consultation with the public after the project completion.

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VIII. GRIEVANCE REDRESS MECHANISM

434 A grievance redress mechanism (GRM) has been developed in compliance with ADB’s SPS (2009) requirement to address environmental, health, and safety concerns associated with the project construction and operation. The GRM is designed to achieve the following objectives: i) provide channels of communication for local communities to raise concerns about environmental grievances which might result from the project; ii) prevent and mitigate adverse environmental impacts to communities caused by project construction and operation; iii) improve mutual trust and respect and promote productive relationships between the IA and local communities; and iv) build community acceptance of the project.

435 The GRM is accessible to all members of the community, including women, youth, and poverty-stricken residents. Multiple points of entry are available, including face-to-face meetings, written complaints, telephone conversations, e-mail, and social media. Public grievances related to the project construction may include damage to public roads, interruption of public services, dust emissions, noise, soil erosion, inappropriate disposal of waste materials, and safety for the public and construction workers.

436 The GRM meets the regulatory standards of the PRC that protect the rights of citizens from construction-related environmental and/or social impacts. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Based on the regulation, the former State Environmental Protection Administration (SEPA) published updated Measures on Environmental Letters and Visits (Decree No. 34) in 2006.

437 Currently in the PRC, when residents or organizations are negatively affected by a development, they may complain, by themselves or through their community committee, to the contractors, developers, the Township Government, the local EEB, or by direct appeal to the local courts. The main weaknesses of this system are: (i) the lack of a specialized unit to address grievances; and (ii) the lack of a specific timeframe for the redress of grievances. The project GRM addresses these weaknesses. A strength of the current system is the inclusion of the local EEB hotline for complaints and reporting environmental issues. The project GRM incorporates this hotline as one of the entry points for affected persons.

438 The details of the project GRM, including a time-bound flow chart of procedures, are included in the project EMP (Appendix 1 of this IEE).

439 Residents and/or organizations affected by the project activities were encouraged to participate in the preparation of the domestic EIAs, the IEE and the EMP. However, environmental issues and concerns usually develop during both construction and operation periods. Project-level GRMs in the subproject cities / counties have been developed in order to solve problems effectively, as well as guaranteeing that the project will be implemented smoothly and successfully. Grievances and complaints of potentially affected people and organizations will be recorded, addressed and solved completely and quickly through the mechanism.

A. Current Practice

440 Currently, when residents or organizations are negatively affected by project activities, such as noise, dust or safety issues caused by construction activities, they may complain to the contractors and implementing agencies by themselves or through their community committees, or complain directly to local EEBs before they finally appeal to the court. In the case of issues occurring during the construction period, they can complain to the contractors first if the construction is the source of the problem. If the contractors' responses cannot resolve the

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issues or if the contractors do not respond to the issues, they may contact municipal EEBs or the district/county EEBs, who will record the complaints and then visit the sites to investigate and obtain the contractors’ side of the story. Sometimes, the two sides might contradict, each defending its own argument. In such cases, the local EEBs will need to consult with the contractor or the environmental supervision engineer to acquire relevant project information and collect data. This kind of fact-finding or site investigation is usually time-consuming, thus delaying the mediation process. The major weaknesses of the current system are: (i) the lack of a specialized unit to address grievances on a project level; and (ii) no specific timeframe for the GRM.

B. Proposed Grievance Redress Mechanism

441 The proposed GRM process flow is illustrated in Figure EMP-1 of the EMP (Appendix 1). The Environmental and Social Officers of IPMO will be the lead coordinators for GRM implementation. However, all project agencies and staff will be trained required by the GRM and will take an active role in supporting these staff as and when necessary.

442 At the IPMO level, the Environmental Officer and Social Officer will establish a GRM tracking and documentation system, conduct daily coordination with the PMOs’ officers, arrange meetings and conduct site visits as necessary, maintain the overall project GRM database, and prepare the reporting inputs for progress reports to ADB. Besides, the environment and social officers will instruct contractors and CSCs on the GRM procedures, and coordinate with the local EEBs and other government divisions as necessary.

443 The contact persons for different GRM entry points, such as the IPMO Environmental and Social Officers, contractors, operators of project facilities (OPFs), sheep breeding bases and slaughterhouses for possible odor issues, and local EEBs, will be identified prior to construction. The contact details for the entry points (phone numbers, addresses, e-mail addresses) will be publicly disclosed on information boards at construction sites and on the websites of the local EEBs.

444 Once a complaint is received and filed, the IPMO officers will identify if complaints are eligible. Eligible complaints include those where (i) the complaint pertains to the project; and (ii) the issues arising in the complaint fall within the scope of environmental issues that the GRM is authorized to address. Ineligible complaints include those where: (i) the complaint is clearly not project-related; (ii) the nature of the issue is outside the mandate of the environmental GRM (such as issues related to resettlement, allegations of fraud or corruption); and (iii) other procedures are more appropriate to address the issue. Ineligible complaints will be recorded and passed to the relevant authorities, and the complainant will be informed of the decision and reasons for rejection.

445 The GRM does not affect the right of an affected person to submit his/her complaint to any agency he/she wishes to, for example the local village committee, community leaders, courts, PMO, CMG, district/county government, and/or ADB.

446 The IPMO shall bear any or all costs of implementing the GRM, including meeting, travel, and/or accommodation costs for project staffs or affected persons. The GRM will be implemented throughout project construction and at least the first year of operation for each project facility.

447 Complaints will be received by the IPMO staff or the environmental supervision engineer. Grievance focal points will be designated at these levels to receive, help resolve, report or forward complaints received from the people. People may visit, call or send a letter or email to any of the grievance focal points to register their comments or complaints related to

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environmental issues or other aspects of the project.

448 The IPMO will maintain a record-book to register the complaints and keep track of their status. Reports and complaint resolution will be subject to follow-ups by the Program Director. The grievance focal points will also be tasked to regularly coordinate with the IPMO to keep track of the complaints received, related actions taken and the status of resolution. Complaint forms will be distributed to the heads of local governments to facilitate the recording of complaints

C. Types of Grievances Expected

449 Public grievances to be addressed by the GRM will most likely include disturbance of agricultural activities, traffic, dust emissions, construction noise, odor caused by transport and treatment of workers’ domestic waste, soil erosion, inappropriate disposal of construction wastes, damage to private houses, safety measures for the protection of the public and construction workers, and/or water quality deterioration.

450 Grievances related to involuntary resettlement may relate to the lack, or un-timely payment of, compensation fees, other allowances, and/or lease fees as per entitlements described in the resettlement plan and associated documents.

D. GRM Steps and Timeframe

451 If any grievance was not effectively solved at the subproject level, provincial IPMO will facilitate the development of reasonable, effective, and satisfactory resolution. The following describes the five main steps of the Project level GRM.

Step 1: For environmental problems during the construction and operational stages, the affected person (AP) can register his/her complaint directly with the contractors or with the IPMO complaint center via its hotline. A joint hotline for resettlement and environment issues shall be established within PMO. Complaints related to land acquisition and resettlement issues shall be directed to the IPMO and relevant agencies in accordance with the resettlement plan (RP). Contractors are required to set up a complaint hotline and designate a person in charge of handling complaints, and advertise the hotline number at the main entrance to each construction site, together with the hotline number of the IPMO complaint center. The contractors are required to maintain and update a Complaint Register to document all complaints. The contractors are also required to respond to the complainant in writing within 7 calendar days on their proposed solution and how it will be implemented. If the problem is resolved and the complainant is satisfied with the solution, this can be recorded by the IPMO complaint center and follow-up shall be carried out during the next project site visit by the PIC-ES. The contractors are required to report complaints received, handled, resolved and unresolved to the IPMO complaint center immediately, and to the IA and IPMO monthly (through progress reporting).

Step 2: If no appropriate solution can be found during step 1, the contractor has the obligation to forward the complaint to the IPMO complaint center, the IA and local EEBs. For an oral complaint, proper written records shall be made. Once a complaint is registered and put on file, the IPMO complaint center shall assess the eligibility of the complaint, identify the solution and provide a clear reply for the complainant within 14 calendar days. The PIC-ES shall assist the IPMO complaint center in addressing the complaint, and follow-up with the AP. The IPMO complaint center shall also inform the ADB project team and submit all relevant documents. Meanwhile, the IPMO complaint center shall convey the complaint/grievance and suggested solution to the contractors, and/or IA’s O&M unit in a timely manner. The contractors during construction and the O&M unit during operation shall

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implement the agreed redress solution and report the outcome to the IPMO complaint center within fifteen (15) working days.

Step 3: In case no solution can be identified by the IPMO complaint center, or the complainant is not satisfied with the proposed solution, the IPMO complaint center shall organize, within 14 calendar days, a multi-stakeholder hearing (meeting) involving all relevant stakeholders (including the complainant, IA, contractors, O&M unit, local EEB, and PMO). The hearing shall identify a solution acceptable to all, and formulate an action plan.

E. Disclosure of the Grievance Process

452 The complaint resolution process will be documented in the environmental monitoring reports. 453 In addition to the project GRM, ADB's overall accountability mechanism (2012) applies.17 This mechanism provides opportunities for people adversely affected by ADB-financed projects to express their grievances; seek solutions; and report alleged violations of ADB’s operational policies and procedures, including safeguard policies. ADB’s accountability mechanism comprises two separate, but related, functions: (i) consultation, led by ADB’s special project facilitator, to assist people adversely affected by ADB-assisted projects in finding solutions to their problems; and (ii) providing a process through which those affected by projects can file requests for compliance review by ADB’s Compliance Review Panel.

17 The revised accountability mechanism became effective on 24 May 2012.

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IX. ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

454 An EMP has been prepared for the IMAR MFF Tranche 1 subprojects and the details of the EMP are presented in Appendix 1.

455 The EMP identifies the potential environmental impacts and defines mitigation measures and monitoring requirements for the design, construction and operational phases. It also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets, capacity building and training for implementation of this project-specific EMP. The EMP specifies the effective implementation of environmental protection activities during pre-construction, construction, and operation in order to prevent, reduce, or mitigate adverse environmental impacts and risks. The EMP draws on the findings of the IEE report; domestic FSR and domestic EIA report; and discussions and agreements with the IA, EA and ADB

456 The EMP consists of six components: (i) institutional arrangements and environmental responsibility; (ii) environmental mitigation measures; (iii) environmental monitoring; (iv) institutional strengthening and training; (v) public consultation; and (vi) GRM. Environmental monitoring consists of two types of monitoring: (i) environmental monitoring in terms of environmental data collection and analyses for assessing the extent and severity of impact; and (ii) compliance monitoring (or audit) by independent entities for verifying EMP implementation. The last section of this EMP contains a list of environmental contract clauses for inclusion into all bidding documents and works contracts for environmental protection during station construction.

B. Institutional Arrangements and Responsibilities for EMP Implementation

457 The IMAR Government (IMARG) is the executive agency (EA) of the Investment Program. The EA has established a project leading group (IPLG) and has setup an IMAR project management office (IPMO) to support the Investment Program implementation.

458 At the prefecture-level, Erenhot Municipal Government (EMG) is the implementing agency (IA) for Subproject 1. Erenhot municipal project management office (EPMO) has been established under the Erenhot DRC to carry out overall coordination and supervision of subproject preparation and implementation in its level. Erenhot Yixin Urban & Rural Development and Construction and Asset Management Co., Ltd (Yixin) has been assigned to act as the PIE. A project implementing unit (PIU) has been established inside the PIE to carry out the daily implementation of this subproject.


460 For the FIs in Tranche 1, BOIM and other FIs to be selected during the implementation period, are the PIEs for Subproject 4 of SMEs in Cross Border Businesses Expansion in IMAR.

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BOIM was selected based on the ADB’s set of eligibility criteria for lending transactions of this nature. The same eligibility criteria will be applied for selecting other FIs during the implementation period.

461 Environmental and ESMS Specialist of Project implementation consultant (PIC-ES). A PIC-ES will be recruited either through an individual contract or under the Project implementation consultant (PIC). The PIC-ES will advise the IPMO, IAs, PIEs, contractors and Construction Supervision Companies (CSCs) on all aspects of environmental management and monitoring for the project. The PIC-ES shall:

(i) assess the project’s environmental readiness prior to implementation based on the readiness indicators defined in Table EMP-3 in the EMP;

(ii) support the IPMO in updating the EMP including environmental monitoring plan as necessary to revise or incorporate additional environmental mitigation and monitoring measures, budget, institutional arrangements, and others that may be required based on the detailed design; ensure compliance with the PRC’s environmental laws and regulations, ADB’s SPS 2009 and Access to Information Policy (2018);

(iii) if required, update the IEE and EMP reports for changes during the detailed design or subproject implementation (for example if there is a minor or major scope change) that would result in adverse environmental impacts that are not within the scope of the approved IEE/EMP;

(iv) assist the PIEs/IPMO in establishing a GRM;

(v) conduct the EMP compliance check, undertake site visits, identify any environment-related implementation issues, and propose and oversee the implementation of necessary corrective actions;

(vi) assist the IPMO in preparing the environmental section of quarterly project progress reports and semi-annual/annual environmental monitoring reports (EMRs) for submission to ADB;

(vii) provide training to the IPMO, IAs, PIEs, and contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, and GRM in accordance; and

(viii) assist the IPMO and PIEs in conducting consultation meetings with relevant stakeholders as required, who will be informed of imminent construction works and updated on the latest subproject development activities and GRM mechanisms during the consultations.

462 Construction Contractors, Construction Supervision Companies (CSCs). Construction contractors will be responsible for implementing relevant mitigation measures during construction under the supervision of the CSCs and PIEs. Contractors will develop site-specific EMPs on the basis of the project EMP. CSCs will be selected through the PRC bidding procedure by the PIEs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports submitted to the PIEs and LPMOs.

463 Environmental Monitoring Agency (EMA). The IPMO will recruit a EMA to conduct periodic environmental impact monitoring during construction and operation in accordance with the monitoring plan.

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C. Inspection, Monitoring and Reporting

464 Three types of project monitoring will be conducted under the EMP.

(i) Project readiness monitoring. To be conducted by the IPMO EHS officers (under the support of PIC-ES).

(ii) EMP environmental monitoring. To be conducted by the EMA (contracted by the IPMO) involving the collection and analysis of air quality, noise, water quality data, etc. at designated monitoring locations to assess the compliance with applicable environmental quality and emission standards during construction.

(iii) EMP performance evaluation. To verify the EMP compliance during project implementation.

465 ADB will oversee the project compliance based on the quarterly project progress reports and semi-annual/annual EMRs provided by the PMO, and also based on site visits (generally once a year).

466 Project Readiness Monitoring. Before construction, the PIC-ES shall assess the project’s readiness on environmental management based on a set of indicators and report it to ADB and PMO. This assessment shall demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met.

467 Environmental Monitoring. The scope, location, parameter, duration, frequency, and responsible agencies for monitoring during the construction and operational phases are defined in the EMoP. Environmental monitoring to be conducted by the EMA (contracted by the IA) shall include monitoring of air quality, noise and water quality during construction; and water quality during operation. The selection of monitoring locations is based on a number of factors including the distance from the station sites, number of households and populations affected, and the extent of sensitivity to air, noise and water quality impacts (e.g. residential household, school). The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. The monitoring results shall be compared with relevant PRC performance standards. Non-compliance with these standards shall be highlighted in the EMRs. The monitoring results shall be submitted by the EMA to the IPMO and PIC-ES also on a quarterly basis. The IPMO shall then submit the monitoring results to ADB in the semi-annual/annual EMRs prepared with the support of the PIC-ES.

468 Monitoring by ADB. Besides reviewing the annual EMRs from PMO, ADB missions will inspect the project progress and implementation on site at least once a year. For environmental issues, inspections will focus mainly on (i) environmental monitoring data; (ii) the implementation status of subproject performance indicators specified in the loan documents for the environment, environmental compliance, implementation of the EMP, and environmental institutional strengthening and training; (iii) the environmental performance of contractors, ESE, PIC-ES, IA and PMO; and (iv) operation and performance of the project GRM and ongoing information disclosure and public consultation. The performance of the contractors in respect of environmental compliance will be recorded and will be considered in the next bid evaluations. ADB also prepares the final Project Completion Report (PCR), which includes a section on environmental impact assessment of the Project.

469 Project completion environmental audits. Within three months after the subproject completion, or no later than one year with permission of the local EEBs, environmental acceptance monitoring and audit reports of each subproject completion shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement

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of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the annual EMP monitoring and progress reporting process. The environmental audits can be conducted together with the overall project completion acceptance inspection. The environmental acceptance report for the completed project shall indicate the timing, extent, effectiveness of completed mitigation and maintenance, and the needs for additional mitigation measures and monitoring during operation. The IPMO EHS officer with support of the PIC-ES shall prepare an environment chapter of the draft Project Completion Report.

X. CONCLUSION AND RECOMMENDATIONS

470 . This IEE including the EMP was prepared in compliance with ADB’s SPS, and relevant domestic environmental regulations. The IEE incorporates the findings of the domestic FSR, EIA, and topical studies conducted (including a climate risk and vulnerability assessment, environmental due diligence assessment etc.). Potential environmental impacts have been identified in the IEE and mitigation measures have been proposed. A comprehensive EMP including environmental monitoring program has been developed. Both internal and external environmental monitoring procedures during project implementation will be conducted to ensure the EMP implementation.

471 The IEE concludes that potential environmental impacts associated with the IMAR MFF Tranche 1 subprojects will not be irreversible and will either be of temporary nature or able to be avoided or mitigated with proper environmental management. The IEE’s findings have been incorporated in the EMP as mitigation and management measures to be implemented during the project execution. Assuming the full and effective implementation of the project EMP and loan assurances, the potential adverse environmental impacts can be minimized and/or mitigated to acceptable levels within the standards applied in this project IEE.

472 It’s suggested that the corresponding environmental mitigation measures will form part of the contractual obligations with contractors for construction and with operating units for project operation.

A. Risks and Assurances

473 Risk. The project has no unusual technical risks. Conversional engineering designs with proven reliability and performance will be adopted for all the project components. From an environmental safeguard point of view, the main risk is the failure of the PMO, IA and O&M units in monitoring the environmental impacts and implementing the EMP during the project construction and operation. To reduce this risk, the following mitigation measures will be undertaken: i) providing trainings in environmental management; ii) appointing qualified project implementation consultants, iii) following appropriate project implementation and monitoring arrangements, iv) conducting regular ADB project reviews; and v) covenanting project assurances in the loan and project agreements with ADB.

474 Assurance. The IA shall ensure that the preparation, design, construction, implementation, operation and decommissioning of the Project will comply with: (a) all applicable laws and regulations of the Borrower relating to the environment, health and safety; (b) the Environmental Safeguards; and (c) all measures and requirements set forth in the IEE, the EMP, and any corrective or preventative plans.

B. Overall Conclusion

475 The IEE has: i) identified potential environmental impacts; ii) developed appropriate mitigation measures; ii) assessed public support from the project beneficiaries and affected

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people; iv) established a project GRM; iv) prepared a project EMP, including environmental management and supervision mechanisms, environmental monitoring plans, and capacity building and training arrangements.

476 It is concluded that the Tranche 1 subprojects will not lead to significant adverse environmental impacts that are irreversible, diverse, or unprecedented. Its impacts to the biological environment on noise, vibration, air, surface water, and groundwater during both the construction and operational phases are assessed to be minimal and can be reduced or eliminated to acceptable levels by implementing the proposed mitigation measures and by following the EMP developed for the tranche 1 subprojects.

477 The EMP and legal assurances reflected in the project and loan agreement will ensure that the mitigation measures are implemented in an appropriate institutional framework and are supported through comprehensive training, monitoring and reporting arrangements. The IEE concludes that the Project is feasible from an environment safeguards point of view, and the environmental categorization of “Category B” is confirmed.

Appendix 1 Environmental Management Plan (EMP)

Project Number: 51192-001

June 2020

Proposed Multitranche Financing Facility

People’s Republic of China: Inner Mongolia Sustainbale Cross-Border Development Investment Program

Appendix 1

2

CONTENTS

Appendix 1 Environmental Management Plan (EMP) .......................................................... 1

CONTENTS......................................................................................................................... 2

A. Introduction ...................................................................................................... 3

B. Institutional Arrangements and Responsibilities for EMP Implementation ......... 3

C. Summary of Potential Impacts and Mitigation Measures .................................. 9

D. Environmental Monitoring, Inspection and Reporting ...................................... 21

E. Institutional Capacity Building and Training .................................................... 26

F. Consultation, Participation and Information Disclosure ................................... 28

G. Grievance Redress Mechanism...................................................................... 29

H. Cost Estimates ............................................................................................... 32

I. Mechanisms for Feedback and Adjustment .................................................... 33

J. Environmental Contract Clauses for Inclusion into Tender Documents and Civil

Works Contracts ........................................................................................................ 33

Appendix 1

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A. Introduction

1 This Environmental Management Plan (EMP) was prepared for Tranche 1 of the proposed Multitranche Financing Facility for Inner Mongolia Sustainable Cross-Border Development Investment Program (the Investment Program) in Inner Mongolia Autonomous Region (IMAR) of the PRC. The EMP was prepared in conjunction with the domestic Environmental Impact Assessment (EIA) Institutes, local design institutes, and IMAR Project Management Office (IPMO). It draws on the findings of a number of project preparation documents, including the project initial environmental examination (IEE) report; domestic feasibility study reports (FSRs) and domestic environmental impact assessment reports (EIARs); and city master plans.

2 The EMP specifies the effective implementation of environmental protection activities for all the implementation phases of the project, including design & pre-construction, construction, and operational phases to prevent, reduce, or mitigate adverse environmental impacts and risks. It defines appropriate mitigation measures and monitoring requirements for the anticipated environmental impacts, and identifies the institutional responsibilities and mechanisms for monitoring to ensure the compliance with relevant PRC’s environmental laws, standards and regulations, and ADB’s SPS. The EMP specifies (i) objectives; (ii) implementing organization and responsibilities; (iii) mitigation measures; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (v) future public consultation; and (vi) a feedback and adjustment mechanism.

3 In the design stage，the IPMO will pass the EMP to the design institute for incorporating

mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, as needed. To ensure that bidders will respond to the EMP’s provisions in their proposals/tendering documents, the IPMO will prepare and provide the following specification clauses for incorporation into all the bidding documents: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals, (ii) environmental clauses for contractual terms and conditions, and (iii) component EIAs, and project IEE including updated EMP for compliance.

4 This EMP consists of six components: (i) institutional arrangements and environmental responsibility; (ii) environmental mitigation measures; (iii) environmental monitoring; (iv) institutional strengthening and training; (v) public consultation; and (vi) grievance redress mechanism (GRM). Environmental monitoring consists of two types of monitoring: (i) environmental monitoring in terms of environmental data collection and analyses for assessing the extent and severity of impact; and (ii) compliance monitoring (or audit) by independent entities for verifying EMP implementation. The last section of this EMP contains a list of environmental contract clauses for inclusion into all bidding documents and works contracts for environmental protection during station construction.

B. Institutional Arrangements and Responsibilities for EMP Implementation

5 The IMAR Government (IMARG) is the executive agency (EA) of the Investment Program. The EA has established a project leading group (IPLG) and has setup an IMAR project management office (IPMO) to support the Investment Program implementation.

6 At the prefecture-level, Erenhot Municipal Government (EMG) is the implementing agency (IA) for Subproject 1. Erenhot municipal project management office (EPMO) has been established under the Erenhot DRC to carry out overall coordination and supervision of subproject preparation and implementation in its level. Erenhot Yixin Urban & Rural Development and Construction and Asset Management Co., Ltd (Yixin) has been assigned to act as the PIE. A project implementing unit (PIU) has been established inside the PIE to carry out the daily implementation of this subproject.

Appendix 1

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8 For the FIs in Tranche 1, Bank of Inner Mongolia (BOIM) and other FIs to be selected during the implementation period, are the PIEs for Subproject 4 of SMEs in Cross Border Businesses Expansion in IMAR. BOIM was selected based on the ADB’s set of eligibility criteria for lending transactions of this nature. The same eligibility criteria will be applied for selecting other FIs during the implementation period.

9 The local project management offices at the two municipalities of Erenhot and Baotou (EPMO and BPMO) will supervise and coordinate overall implementation of the subprojects. The project implementing entities (PIEs) will physically implement the subprojects on behalf of the respective IAs. The EMP implementation arrangements and responsibilities of governmental organizations are summarized in Table EMP-1.

Table EMP-1: Institutional Responsibilities for EMP implementation

Agency Environmental Management Roles and Responsibilities

Executing Agency (EA) –IMAR Government (IMARG), represented by the Project leading group (PLG)

Responsible for project coordination with project city governments, liaison with ADB, financial management and administration through the IMAR project leading group (IPLG) and its project management office (IPMO):

• provide overall guidance, coordination, supervision, and management for project preparation and implementation; and

• be responsible for coordinating project implementation activities among government agencies, as needed.

Project Leading Group (PLG)

Headed by IMAR Vice Governor and consists of representatives of IMAR DRC (IDRC), IMAR Department of Finance (IDOF), Department of Commerce, Office of Port and Exit, vice-mayor of project prefecture governments and the CEO of private-owned enterprise (POE), with others seconded as necessary to:

• Provide overall coordination and supervision for project preparation and implementation;

• Coordinate project implementation activities among government agencies; and

• Resolve any institutional problems affecting project preparation and implementation.

IMAR Project Management Office - IPMO (established under IDRC)

The IPMO will be responsible for supervision and day-to-day management work during the project preparation and implementation periods:

• Facilitate interagency coordination and coordinate with other involved agencies;

• Direct project preparation and implementation activities;

• Recruit procurement agency;

• Recruit and manage PIC;

• Prepare payment requests for project management and capacity building component, and submit to IDOF for review and approval;

• Prepare annual work programs and budgets;

• Guide project procurement activities, including the review and submission of bidding documents, bid evaluation reports (BERs), and other necessary documentation to ADB for necessary approval;

Appendix 1

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• Under Tranches 2&3, ensure that eligibility criteria for subprojects and other requirements stipulated in the relending agreement are met;

• Implement the component for project management and institutional capacity building;

• Ensure the eligibility criteria and other requirements for SMEs under FIL component are met, including those to be financed by revolved funds;

• Establish and implement the project grievance redress mechanism;

• Establish PPMS within 6 months after the loan effectiveness to monitor project progress, including regular monitoring of physical and financial progress, and safeguards compliance;

• Support PIEs with the implementation of EMP and SDGAP, EMDF, RF and EARF for subprojects for subsequent tranches, and assist FIs in implementing of ESMS;

• Ensure project implementation compliance with loan agreement and project agreement;

• Facilitate and participate in annual ADB review missions;

• Cooperate with the audit department for auditing of project accounts;

• Consolidate and submit (1) semi-annual project progress reports (including investment loan component and FIL component), (2) semi-annual environmental safeguard monitoring progress report, including the implementation of EMP and EARF, (3) semi-annual social safeguard monitoring progress report, including the implementation of SDGAP, (4) semi-annual ESMS monitoring progress report; (5) annual project audited financial statements, (6) annual audited entity financial statements for POE and FIs, and (7) midterm and project completion reports to ADB and IMARG, with assistance from the PIC; and

• Summarize the project experience and facilitate project replication over the regional ECZs.

Implementing Agencies (IAs) (project municipal governments, represented by the municipal project management office - MPMO).

On behalf of project municipal government, the MPMOs will be responsible for overall coordination and supervision of subproject preparation and implementation in its level, including:

• Facilitate interagency coordination and coordinate with other involved parties in its level;

• Direct subproject preparation and implementation activities;

• Prepare the annual work plan and budget in coordination with the PIEs;

• Organize and conduct procurement activities, particularly attend bid opening, supervise the bid evaluation process, and endorse BERs for all related procurement packages;

• Coordinate training and capacity development activities;

• Establish and implement the local level grievance redress mechanism;

• Establish baseline data to monitor project impacts and outputs, including but limited to regular monitoring of physical and financial progress;

• Implement the SDGAP, EMP and other safeguard related action plans;

• Facilitate the identification of candidate SMEs;

• Prepare and submit its level (1) semi-annual project progress reports, (2) semi-annual environmental safeguard monitoring progress report, including the implementation of EMP, (3) semi-annual social safeguard monitoring progress report, including the implementation of SGDAP, (4) annual project financial statements, (5) annual audited

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entity financial statements from POE and (6) midterm and project completion reports to IPMO, with assistance from the PIC; and

• Liaise with IPMO, ADB, and other agencies as needed. Project Implementing Entities (PIEs)

Erenhot Yixin Urban & Rural Development and Construction and Asset Management Co., Ltd (SOE) is the PIE for Erenhot Municipality. Damaoqi Pine Boolean Property Service Co., Ltd (SOE) and Inner Mongolia Xiao Wei Yang Stock Raising Sciences and Technologies Co., Ltd (POE) are the PIEs for Baotou Municipality. The responsibilities of the PIEs include the following:

• Set up and maintain a PIU to implement day-to-day activities;

• Recruit design institutes for preliminary and detailed designs;

• Prepare the bidding documents with the support of procurement agency, participate bid evaluation, including signing of BERs, and signing and administration of contracts with the aid of procurement agency;

• Ensure environmental and social safeguards are complied with based on ADB’s Safeguard Policy Statement (2009);

• Establish and maintain the required project accounting arrangement and other implementation recording systems;

• Prepare payment requests and submit to the local BOF for review and confirmation;

• Retain supporting documents under payment request procedure;

• Maintain the project ‘s financial records, making them ready for inspection by ADB missions;

• Provide MPMO with inputs to (1) semi-annual project progress report, (2) semi-annual environmental safeguard monitoring progress report, (3) semi-annual social safeguard monitoring progress report, and (4) annual subproject financial statements, and (5) audit financial statements for POE, with assistance from the PIC, and (6) mid-term report and project completion report;

• Operate and maintain the facilities constructed or improved under the project; and

• Liaise with PMOs, ADB, and other agencies as needed. Project Implementing Unit (PIU)

A PIU is setup and maintained in each PIE to implement day-to-day activities to ensue successful implementation of the relevant project components:

• Appoint one staff for EMP coordinator;

• Tendering contractors and equipment with assistance of the international tendering agency;

• Administer and monitor contractors and suppliers;

• Construction supervision and quality control;

• Contracting of construction supervision companies (CSC) to conduct daily environmental inspection and supervision;

• Contracting of local environmental monitoring agency (EMA) to conduct environmental compliance monitoring (air, water and noise)

• Participation in capacity building and training programs; and

• Commissioning of the constructed facilities. Asian Development Bank (ADB)

• Provide guidance and support to executing and the implementing agencies to ensure compliance with loan and project agreements;

• Conduct regular loan review missions, midterm review mission, and project completion review;

• Review and approve sub-loans to SMEs that require prior review under FIL;

• Review and approve procurement actions;

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• Disburses the loan in accordance with the agreed procedures upon receipt of duly authorized disbursement applications and necessary supporting documentation;

• Monitor the project implementation progress;

• Review annual audit reports and follow up on audit recommendations;

• Review project progress reports and monitors implementation of EMP, SDGAP, EARF, EMDF and ESMS;

• Ensures that IMARG act on any non-compliance issues; and

• Develop partnership with IMARG and supervises project implementation to ensure ADB interests are safeguarded.

Facility Operators Ensuring successful ongoing operation and maintenance of the relevant project components:

• In conjunction with PIEs, commissioning of the constructed facilities; and

• O&M of completed facilities, including environmental management, monitoring and reporting responsibilities.

ADB = Asian Development Bank, BOF = Bureau of Finance, EARF = environmental assessment review framework, EMDF = ethnic minority development framework, EMP = environmental management plan, ESMS = environmental and social management system arrangement, FIL = financial intermediation loan, FIs=financial intermediaries, IDOF = Inner Mongolia Autonomous Region Department of Finance, IDRC = Inner Mongolia Autonomous Region Development Reform Commission, IMARG = Inner Mongolia Autonomous Region Government, IPMO = Inner Mongolia Autonomous Region project management office, MOF = Ministry of Finance, PCR = project completion report, PIC = project implementation consultants, PIU = project implementing unit, PLG=project leading group, MPMO = municipal project management office, PPMS = project performance management system, SDGAP = social development and gender action plan, SMEs = small and medium-sized enterprises, SPS = Safeguard Policy Statement, RF = resettlement framework. Source: Asian Development Bank.

10 Environment staff within Municipal Project Management Offices (MPMOs) and PIEs. The MPMOs (e.g. the local EPMO in Erenhot and BPMO in Baotou Municipalities for Tranche 1) will have main EMP coordination responsibility for project subcomponents in each subproject municipality, respectively. Each MPMO will establish an environmental management unit (EMU) and designate a leader and an appropriate number of staff in its office. The EMUs will take charge of (i) coordinating the implementation of the EMP at its level and developing implementation details; (ii) supervising the implementation of mitigation measures during project construction and operation; (iii) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management plans; (iv) submitting semi-annual (during construction)/annual (during operation) environmental monitoring reports to the MPMOs; (v) coordinating the local GRM; and (vi) responding to any unforeseen adverse impact beyond those mentioned in the domestic EIAs, the project IEE and the EMP. The EMUs will be technically supported by the PIC-ES.

11 The IAs are responsible for the preparation and implementation of all civil construction works. Each IA will appoint one environment supervisor to do the following: (i) review and approve contractors’ site-EMP; (ii) organize periodic environmental monitoring in compliance with the approved monitoring plan; (iv) act as local entry point for the project GRM; (v) assess the contractors’ compliance with the site-EMP and PRC environmental quality standards for ambient air, water and noise; (vi) submit quarterly inspection and monitoring results to the contractors for information, and to the MPMO for verification and confirmation..

12 For environment safeguards, the IPMO is responsible for overall management of project preparation and implementation activities, coordinating implementation of the EMP, coordinating the Project level GRM, monitoring project progress and project impacts, and facilitating the communication and coordination with ADB. The IPMO will assign one safeguards officer (IPMO-SO) in charge of supervising the effective implementation of the EMP. An

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implementation schedule showing phasing and coordination with overall subproject implementation shall be developed, and institutional or organizational arrangements, namely, who is responsible for carrying out the mitigation and monitoring measures, shall be described. Institutional arrangements may include one or more of the additional topics to strengthen environmental management capability, including technical assistance programs, training programs, procurement of equipment and supplies related to environmental management and monitoring, and organizational changes. The estimates of capital and recurrent costs and sources of funds for implementing the environmental management plan shall be described. ADB will oversee the project compliance based on the quarterly project progress reports and semi-annual/annual EMRs provided by the IPMO, and also based on site visits (generally once a year).

13 Environmental and ESMS Specialist of Project Implementation Consultant (PIC-ES). A PIC-ES will be recruited either through an individual contract or under the project implementation consultant (PIS) by the IPMO. The PIC-ES will advise the IPMO, IAs, PIEs, contractors and Construction Supervision Companies (CSCs) on all aspects of environmental management and monitoring for the project. The PIC-ES shall:

(i) assess the project’s environmental readiness prior to implementation based on the readiness indicators defined in Table EMP-3 in the EMP;

(ii) support the IPMO in updating the EMP including environmental monitoring plan as necessary to revise or incorporate additional environmental mitigation and monitoring measures, budget, institutional arrangements, and others that may be required based on the detailed design; ensure compliance with the PRC’s environmental laws and regulations, ADB’s SPS 2009 and Access to Information Policy (2018);

(iii) if required, update the IEE and EMP reports for changes during the detailed design or subproject implementation (for example if there is a minor or major scope change) that would result in adverse environmental impacts that are not within the scope of the approved IEE/EMP;

(iv) assist the PIEs/IPMO in establishing a GRM;

(v) conduct the EMP compliance check, undertake site visits, identify any environment-related implementation issues, and propose and oversee the implementation of necessary corrective actions;

(vi) assist the IPMO in preparing the environmental section of quarterly project progress reports and semi-annual/annual environmental monitoring reports (EMRs) for submission to ADB;

(vii) provide training to the IPMO, IAs, PIEs, and contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, and GRM in accordance; and

(viii) assist the IPMO and PIEs in conducting consultation meetings with relevant stakeholders as required, who will be informed of imminent construction works and updated on the latest subproject development activities and GRM mechanisms during the consultations.

14 Construction Contractors and CSCs. Construction contractors will be responsible for implementing relevant mitigation measures during construction under the supervision of the CSCs and PIEs. Contractors will develop site-specific EMPs on the basis of the subproject EMP. CSCs will be selected through the PRC bidding procedure by the PIEs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer at each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii)

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prepare the contractor’s environmental management section in subproject progress reports submitted to the PIEs and IPMO.

15 Environmental Monitoring Agency (EMA). The IPMO will recruit a EMA to conduct periodic environmental monitoring during construction and operation in accordance with the monitoring plan (Tables EMP-4 and EMP-5).

C. Summary of Potential Impacts and Mitigation Measures

16 Table EMP-2 lists the anticipated impacts of the project components in the project cities during the phases of design and pre-construction, construction and operation, respectively, as identified by the domestic EIAs and the project IEE. Corresponding mitigation measures are defined to minimize the environmental impacts. There are two types of mitigation measures:

⚫ Measures that will permanently become part of the infrastructure such as engineering measures for noise barriers and station wastewater treatment facilities, etc. should be included within the main civil work contract costs, and are not double-counted as part of the EMP costs.

⚫ Temporary measures during the construction phase (e.g. dust suppression by watering, use of quiet / low noise powered mechanical equipment (PME), flocculants used to facilitate sedimentation of suspended solids in construction site runoff, etc.) will need to be included in the tender documents to ensure that contractors will budget these items in their bids.

17 The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, which will mainly be implemented by design institutes (during detailed design) and contractors (during construction), under the supervision of CSCs, LPMOs and PIEs, with technical support from the PIC-ES. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved or adjusted.

18 The mitigation measures defined in the EMP will be (i) checked and where necessary updated by the design institutes with the EMP subsequently updated; (ii) incorporated into tender documents (where appropriate), construction contracts, and operational management plans; and (iii) implemented by contractors and the IA under the IPMO supervision. The effectiveness of these measures will be evaluated based on the results of environmental monitoring conducted by the EMA, and through EMP compliance checks conducted by the CSCs and PIC-ES.

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Table EMP-2: Potential Impacts and Mitigation Measures during Design, Preconstruction and Construction Phases

Item Environmental

Issues and Impacts

Mitigation Measure Who

Implements Who

Supervises

1.1 Design stage

Detailed design • Finalize detailed designs for all infrastructure. • Include all agreed environmental mitigation and pollution control measures identified

in the IEE, the EMP and the domestic EIAs into the detailed design • Confirm all project facilities will not use any materials containing asbestos.

PIEs, LDI IA

1.2 Implementation Support

Establish implementation support positions

• Contract a Loan Implementation Environmental Consultant (LIEC) EA ADB • Contract Environmental Monitoring Agency (EMA) for external monitoring during

construction and operation. Contractors, PIEs

LIEC

Establish environmental staff positions at different levels of supervision

• Appoint PIE Environment Specialists (PIE-ES) in each PIE PIEs IA, LIEC

1.3 Construction Preparation Stage

Update EMP

• Review EMP to assess if the current mitigation measures need to be updated due to any changes in the final engineering design. For changes in project locations, sites, or other changes that may cause new or greater environmental impacts or involve additional affected people: the IA will conduct additional environmental assessment and public consultation. The revised environmental assessment reports will be submitted to the IA, EEB and ADB for approval and disclosure.

IA-ES, PIEs-ES, LIEC

IA, ADB,

Environmental monitoring plan

• Prior to construction, the IA and/or PIEs will hire an EMA, to conduct environmental monitoring in accordance with the EMP monitoring plan.

EMA IA, ADB

Contract documents

• Prepare and include clauses referencing this EMP in the terms of reference for bidders for construction contracts.

• Prepare environmental contract clauses for contractors, especially the EMP and monitoring plan.

PIEs with LDI

IA-ES, LIEC

Grievance Redress Mechanism (GRM)

• Implement the GRM described in this EMP. • Publicize GRM at all construction sites.

IA-ES, LIEC ADB, IA

Construction site planning

• Prepare Site-specific EMP (SEMP), including health and safety plan and an emergency preparedness and response plan for construction emergencies.

• PIEs and IA review and approve each SEMP

Contractors PIEs-ES, IA-ES

Capacity building

• Provide training on implementation of this EMP to all relevant agencies, especially the PIEs and contractors.

LIEC IA, ADB

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Item Environmental

Issues and Impacts


Implements Who

Supervises

Construction Phase 2.1 Water Domestic

wastewater and construction wastewater from construction sites

• Provide portable toilets and small package wastewater treatment systems and/or septic tanks on construction sites and construction camps for the workers. If there are nearby public sewers, install interim storage tanks and pipelines to convey wastewater to public sewers.

• Empty toilets regularly and transport sewage to a wastewater treatment plant. • Labor camps will be located at least 500 m from rivers and other surface water bodies; • During road construction, contractors will be required to pump slurry to shore and

properly dispose cutting materials. This will reduce the disturbance of sediments and the impact to water quality;

• Contractors will be required to develop contingency plans for control of oil and other dangerous substances (Spill Management Plan) as part of the CS-EMP;

• Wastewater from construction activities will be collected in sedimentation tanks, retention ponds, and filter tanks to remove silts and oil;

• Wastewater should drain to the municipal sewer after treatment; • All areas where construction equipment is being washed will be equipped with water

collection basins and sediment traps; • Fuel storage, maintenance shop and vehicle cleaning areas must be stationed at least

500 m away from the nearest water body; • Storage facilities for fuels, oil, and other hazardous materials will be within secured

areas on impermeable surfaces with 110% volume of the materials stored, and provided with bunds and cleanup installations;

• Contractors’ fuel suppliers must be properly licensed. They shall follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods);

•

Contractors CSC, PIEs, IA

2.2 Air Generation of dust by construction activities

• Spraying water on construction sites and earth/material handling routes where fugitive dust is being generated;

• Paying particular attention to dust suppression near sensitive receptors such as schools, hospitals and residential areas;

• Transport vehicles will be limited to low speeds in construction sites; • Storing petroleum or other harmful materials in appropriate places and covering to

minimize fugitive dust and emission; • Covering materials during truck transportation, in particular, the fine material, to avoid

spillage or dust generation; • Construction site roads will be well maintained and watered and swept on an as-

needed basis;

Contractors CSC, PIEs, EMA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

• Special attention will be paid to protect sensitive sites near the subproject sites. High noise construction activities will be positioned as far away from sensitive sites as possible and

• Ensure emissions from vehicle and construction machineries are in compliance with the PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005.

2.3 Noise and Vibration

Noise from vehicles and construction machinery

• Construction activities, and particularly noisy ones, are to be limited to reasonable hours during the day and early evening. Construction activities will be strictly prohibited during the nighttime (22:00 h to 07:00 h). Exceptions will only be allowed in special cases, and only after getting approval of the surrounding residents, local EEB and other relevant departments. And nearby residents should be notified of such night time activities well in advance.

• When undertaking construction planning, simultaneous high-noise activities will be avoided, and high noise activities will be scheduled during the day rather than evening hours. Similarly, construction site will be planned to avoid multiple high noise activities or equipment from operating at the same location.

• Low-noise equipment will be selected as much as possible. Equipment and machinery will be equipped with mufflers and will be properly maintained to minimize noise.

• Noise PPE will be provided to workers to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHS Guidelines.

• Maintain equipment and machinery in good working condition; undertake regular equipment maintenance, ensure compliance with PRC standards of GB 12523-2011.

• Install temporary anti-noise barriers to shield buildings where non-compliance with Category II in Environmental Quality Standards for Noise (GB3096-2008) is monitored.

• Disseminate information on procedures of handling complaints through the GRM

Contractors PIEs, IA, EMA

vibration from construction machinery

• Avoid concurrent high vibration activities when undertaking construction planning and schedule high vibration activities to be conducted during the day rather than evening hours. Similarly, construction sites shall be planned to avoid multiple high vibration activities or equipment operations to occur at the same location.

• Select low vibration equipment as much as possible. Equipment and machinery will be equipped with vibration damper and will be properly maintained to minimize vibration.

• Maintain equipment and machinery in good working condition. • Disseminate information on procedures of handling complaints through the GRM.

Contractors PIEs, IA, EMA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

2.5 Soil erosion and stability

Erosion from construction sites

• Implement soil erosion control measures. Before construction, the contractor will be required to prepare a Site Drainage and Soil Erosion Management Plan (as part of the CS-EMP) to prevent soil erosion. The plan will include the following soil erosion control measures;

• Maintain slope stability at cut faces by implementing erosion protection measures such as terraces and silt barriers during road constructions;

• Stabilize all cut slopes, embankments, and other erosion-prone working areas while constructions are going on;

• Stabilize all earthwork disturbance areas within 30 days after earthworks have ceased at the sites;

• Minimize active open excavation areas during trenching activities and use appropriate compaction techniques for pipe trenches construction;

• Provide temporary detention ponds for containment to control silt runoff; • Prevent runoff entering construction sites, and divert runoff from sites to existing

drainage or open ground for watering the vegetation by constructing intercepting ditches and drains;

• Strip and stockpile topsoil, and cover or seed temporary soil stockpiles; • Waste construction material such as residual concrete, asphalt, etc., will be properly

handled for reuse or disposal. • Limit construction and material handling during periods of rains and high winds; • Properly slope or re-vegetate disturbed surfaces, such as compacted pipeline

trenches and cut banks and; • Appropriately set up temporary construction camps and storage areas to minimize the

land area required and impact on soil erosion

Contractors PIEs, IA

soil contamination

• Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas, and use the best management practice to avoid soil contamination;

• Remove all construction wastes from the site to approved waste disposal sites; • Establish Spill Management Plan; and • Provide spill clean up measures and equipment at each construction site and require

contractors to conduct training in emergency spill response procedures.

2.6 Solid waste Domestic waste and construction waste from construction sites

• Wastes will be reused or recycled to the extent possible. • Littering by workers will be prohibited. • Excavated soil will be backfilled onsite to the extent possible. Excess spoil that cannot

be used on-site will be transported to an approved spoil disposal site. • Domestic waste containers will be provided at work sites. Domestic waste will be

collected on a regular basis by the local sanitation departments and transported for


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Item Environmental

Issues and Impacts


Implements Who

Supervises

recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements.

• Construction waste dumpsters will be provided at all work sites. Construction waste will be collected on a regular basis by a licensed waste collection company and transported for recycling, reuse, or disposal at a licensed landfill, in accordance with relevant PRC regulations and requirements.

• There should be no final waste disposal on site. Waste incineration at or near the site is strictly prohibited.

• Contractors will be held responsible for proper removal and disposal of any significant residual materials, wastes, spoil and contaminated soils that remain on the site after construction.

2.7 Flora and Fauna

Vegetation protection

• Protect existing vegetation nearby construction sites;

• Properly backfill, compact and re-vegetate pipeline trenches;

• Protect existing trees and grassland during road constructions; where a tree has to be removed or an area of grassland is disturbed, replant trees and re-vegetate the area immediately after construction;

• Remove trees or shrubs only as a last measure if they impinge directly on permanent works or approved necessary temporary works;

• In compliance with the PRC’s forestry law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation;

• Use native plant species of local provenance for replanting;

Habitat retention

• Clearly demarcate construction sites and off-limit areas, to minimize removal of existing vegetation. Implement timely site rehabilitation, using native plant species.

• Surface soil (0-30 cm) will be stored separately for reuse for landscape greening or agriculture. The stockpiling shall have a height less than 5m and a slope less than 1:1.5 with proper compaction to avoid soil erosion.

• Provide training to contractors and workers to increase their awareness on the need to protect the environment, wildlife and vegetation around the construction sites.

• The construction supervision companies (CSCs) and PIE environment officer will regularly inspect construction sites to ensure that habitats are well demarcated, and workers are fully informed of “no-go” areas


Social issues • Local hiring will be given priority to avoid social conflicts; Contractors PIEs, IA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

2.8 Social and Cultural

• The project scale is not expected to cause large population influx and will have limited impacts on the local municipal services; and

• Education of construction workers to minimize social disturbance and cultural conflict. Community safety (all sites)

• Traffic management. A traffic control and operation plan will be prepared, to be approved by the local traffic management administrations before construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed;

• Vehicles transporting construction materials or wastes will slow down and not use their horn when passing through or nearby sensitive locations, such as residential communities, schools and hospitals;

• Underground facilities survey and protection. Construction activities will be planned so as to minimize disturbances to utility services. Three-dimensional detection of underground facilities will be conducted before construction where appropriate;

• Information disclosure. Residents and businesses will be informed in advance through media of the construction activities, given the dates and duration of expected disruption; and

• Construction sites protection. Clear signs will be placed at construction sites in view of the public, warning people against potential dangers such as moving vehicles, hazardous materials, excavations etc., and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate

Contractors CSC, PIEs

Construction site safety (all sites)

• Environmental, health and safety officer. An environmental, health and safety officer will be appointed by each contractor to implement and supervise the environmental, health, and safety management plan (see below).

• Environmental, health and safety management plan. Each contractor will prepare such a plan for the construction works on the basis of the EMP. The plan will include the following provisions:

• Clean water. Provide a clean and sufficient supply of fresh water for construction sites and for all camps, offices and workshops;

• Sewage and wastewater. Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state;

• Solid waste. Garbage receptacles at construction sites and camps will be set up, which will be periodically cleared to prevent outbreak of diseases;

Contractors CSC, PIEs

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Item Environmental

Issues and Impacts


Implements Who

Supervises

• Personal protection. Provide personal protection equipment, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations for workers;

• Emergency preparedness and response. An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events, and submitted to the local EEBs for review and appraisal. Emergency phone link with hospitals in the three project towns will be established. A fully equipped first-aid base in each construction camp will be organized;

• Records management. A records management system that will store and maintain easily retrievable records against loss or damage will be established. It will include documenting and reporting of occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits;

• Safety communication. Ensure that occupational health and safety matters are given a high degree of publicity to all persons regularly or occasionally on each construction site. Posters will be displayed prominently in relevant areas of the site; and

• Training, awareness and competence. Train all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work. Implement site HIV/AIDS and other communicable diseases awareness and prevention program to target the local community and construction workers.

Cultural, physical and natural heritage protection

• The local Cultural Heritage Bureau and IA will be promptly notified. • Construction will resume only after investigation and with the permission of the

appropriate authority. • The clause for protection of unknown underground cultural relics will be included in

construction contracts, to ensure that contractors comply with the PRC's Cultural Relics Protection Law and Cultural Relics Protection Law Implementation Regulations in the event cultural resources are discovered during construction.

Contractors CSC, PIEs, IA

3.0 Unexpected environmental impacts

All areas If unexpected environmental impacts occur during construction operations, immediately inform the IA; assess the impacts; and update the EMP

PIEs IA

Operation Phase

3.1 Erenhot 1. Air quality Odor gas • Odor and dust collection and treatment equipment will be installed at the waste

compression and transfer station PIE IA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

2. Noise the noise during operation.

• Trees and shrubs will be planted as soon as possible along the proposed roadsides after construction; as far as possible, native species of local provenance (i.e. seedlings from the local area, not imported from elsewhere) will be used;

• Makes appropriate investment to construct acoustic buffering facilities, such as soundproof windows and sound barriers where applicable;

• Low-noise equipment will be used as far as possible. • Properly Install and maintain noise and vibration control facilities on air conditioning

and ventilation systems. • Install ventilated sound insulation windows on the buildings along the boundaries of

campus if needed.

PIE IA

3. Solid Waste domestic waste • Domestic waste bins will be provided and domestic waste will be routinely collected by the local sanitation department for recyclin or final disposal at Erenhot landfill

PIE IA

4. Wastewater domestic wastewater

• After initial treatment with the new septic tanks, it will be discharged into municipal sewer system and conveyed to the nearby Municipal WWTP Treatment Plant for further treatment.

PIE IA

5.Healht and Safety

Community and workers

• The nearby communities will be informed of the potential risks and the emergency response plan.

• PPE including goggles, gloves, safety shoes will be provided to worker. Masks will be provided to workers working with odor. Noise protection equipment will be provided to workers in high-noise area.

• Provide training to workers on occupational health and safety, and emergency response.

• Subproject site will be fence with restricted public access. • Ensure compliance with relevant health and safety regulations pertaining to

ventilation, indoor air quality, lighting, noise, fire escape, etc; • Establish preparedness plans and operation plans under emergency conditions, such

as fire, earthquake, wind, storm, water contamination, epidemic, air contamination, infestation, explosion etc., as part of the EMS to ensure safe environment for all staff and visitors.

• Prepare a safety checklist and reporting forms as procedural documents of the EMS.

PIE IA

3.2 Mandula 1. Air quality automobile

exhaust, mainly CO, NO2, THC

Strengthen traffic management, promote air circulation and facilitate the diffusion of pollutants.

PIE IA

2. Noise noise • Noise monitoring will be undertaken at the locations and frequencies indicated in the EMP by the EMA;

PIE IA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

• Ambient noise monitoring will be mandated to determine whether mitigation measures will be required for sites where noise levels are expected to exceed by more than 3 dB(A);


• Low-noise equipment will be used as far as possible; • All equipment will be properly maintained in order to minimize noise

3. Solid Waste domestic waste Domestic waste bins will be provided and domestic waste will be routinely collected by the local sanitation department for recycling or final disposal at Mandula landfill

PIE IA

4. Wastewater domestic wastewater

• After initial treatment with the new septic tanks, it will be treated by newly built reclaimed water treatment equipment (200 m3/d) then recycled as landscape water.

PIE IA

5.Health and safety









PIE IA

•

3.3 Xiao Wei Yang

1. Air quality Odor gas • Feces in sheep houses will be cleaned regularly by dry clean method. Ventilation of sheep houses will be improved;

• Temporary feces storage places will be installed with ceilings, windbreaks and intercepting drains. These storage places will have leakage and overflow prevention measures;

• Derating and disinfection of the sheep houses will be improved; • Add deodorant to the fodder to reduce odor;

PIE IA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

• Layout of the breeding bases, animal quarantine station and slaughtering and processing logistics base be reasonable planned to reduce odor diffusion;

• Odor gas treatment facilities will be utilized in the slaughtering and processing logistics base to reduce odor diffusion.

2. Noise noise • Noise monitoring will be undertaken at the locations and frequencies indicated in the EMP by the EMA;

• Ambient noise monitoring will be mandated to determine whether mitigation measures will be required for sites where noise levels are expected to exceed by more than 3 dB(A);


• Makes appropriate investment to construct acoustic buffering facilities, such as soundproof windows and sound barriers where applicable;

• Low-noise equipment will be used as far as possible; • All equipment will be properly maintained in order to minimize noise; • Appropriate noise PPE will be provided to the workers who are likely to be exposed to

high noise level environments to meet the requirements in occupational exposure limits for hazardous agents in work place Part 2: physical agents (GBZ 2.2-2007) and EHG Guidelines on Occupational H&S; and

• Layout for subproject site will be reasonable planned to reduce noise.

PIE IA

3. Solid Waste Manure waste generated

• Domestic waste would be collected by garbage bins and disposed of by the sanitation department.

• Feces in sheep houses will be cleaned regularly by dry clean method. Collected feces will be transported to nearby fertilizer production plants to produce organic fertilizer;

• Dead sick sheep will be treated by safety landfill well. Safety landfill wells will be built at No.4 breeding base, No.5 breeding base, animal quarantine station following PRC’s regulations and standards;

• Medicine waste will be temporally stored at storage place following PRC’s GB18597-2001. Medicine waste will be transported and treated by 3rd party certificated companies;

• Feces generated by slaughtering and processing logistics base will be transported to nearby fertilizer production plants to produce organic fertilizer;

• Viscera, bones, minced meat and waste meat will be transported to nearby 3rd party companies for treatment;

• Waste active carbon from odor treatment equipment will be transported to active carbon manufactures for regeneration; and

PIE IA

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Item Environmental

Issues and Impacts


Implements Who

Supervises

• Waste oil generated by slaughtering and processing logistics base will be transported to nearby 3rd party companies for treatment.

4. Wastewater Domestic wastewater

The wastewater will be treated by buried wastewater treatment equipment and recycled as landscape water.

PIE IA

Production wastewater

The wastewater will be treated at on-site wastewater treatment stations and partly reused as landscape water and floor clean water then the remained wastewater will be discharged into municipal sewer system and conveyed to the nearby Municipal WWTP Treatment Plant for further treatment.

PIE IA

5. Groundwater Potential pollution from animal waste

Adopts mitigation measures. A clay layer with a thickness of 25 cm will be installed at the depth of 35cm beneath the sheepfold to prevent the leakage of urine. This soil on the top of the clay layer will be regularly (annually) changed. Ground water monitoring will be implemented.

PIE IA

6. Health and safety









PIE IA

All components 3.7 Unexpected environmental impacts

All areas If unexpected environmental impacts occur during project operations, immediately inform the IA; assess the impacts; and update the EMP

All O&M Units

PIEs, IA


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D. Environmental Monitoring, Inspection and Reporting

19 Three main types of project monitoring will be conducted under the EMP18.

(i) Project readiness monitoring. To be conducted by the IPMO EHS officers (under the support of PIC-ES).

(ii) EMP environmental monitoring. To be conducted by the EMA (contracted by the IPMO) involving the collection and analysis of air quality, noise, water quality data, etc. at designated monitoring locations to assess the compliance with applicable environmental quality and emission standards during construction.

(iii) EMP performance evaluation. To verify the EMP compliance during project implementation. ADB will oversee the project compliance based on the quarterly project progress reports and semi-annual/annual EMRs provided by the IPMO, and also based on site visits and missions at least once a year.

20 Monitoring and reporting arrangements are described below:

21 Project Readiness Monitoring. Prior to construction, a subproject’s readiness on environmental management should be assessed and reported to ADB and the IPMO based on a set of indicators (as shown in Table EMP-3). This assessment shall demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met.

Table EMP-3: Project readiness assessment indicators Indicator Criteria Assessment

EMP update • EMP was updated after technical detail design & approved by

ADB Yes No

Compliance with loan covenants

• The borrower complies with loan covenants related to project design and environmental management planning

Yes No

Public involvement effectiveness

• Meaningful public consultation completed Yes No

• GRM established with entry points Yes No

Environmental supervision and monitoring in place

• Project implementation environmental consultant (PIC-ES) is in place

Yes No

• Staff environmental coordinators appointed by the IPMO and IAs

Yes No

• Environment monitoring agency (EMA) contracted by the IPMO Yes No

Bidding documents and contracts with environmental safeguards

• Bidding documents and contracts have incorporated the environmental activities and safeguards that are listed as loan assurances

Yes No

• Bidding documents and contracts have incorporated the environmental contract clauses.

Yes No

EMP financial support

• The required funds, if applicable, have been set aside for the EMP implementation

Yes No


22 Environmental Monitoring. The scope, location, parameter, duration, frequency, and responsible agencies for monitoring during the construction and operational phases shall be defined in the environmental monitoring plan. A detailed environmental monitoring program (EMoP) is shown in Table EMP-4. The scope, location, parameter, duration, frequency, and responsible agencies for monitoring during the construction and operational phases are defined

18 In addition to project-specific monitoring, local EEBs will conduct independent ambient and/or enforcement monitoring as per national requirements. This is separate to, and not funded by, the project.

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in the EMoP. Environmental monitoring to be conducted by the EMA (contracted by the IPMO) shall include monitoring of air quality, noise and water quality during construction; and water quality and noise during operation. The selection of monitoring locations is based on a number of factors including the distance from the sensitive receptors, number of households and populations affected, and the extent of sensitivity to air, noise and water quality impacts (e.g. residential households, schools).

23 The monitoring shall comply with the methodology provided in the relevant national environmental monitoring guidelines. The monitoring results shall be compared with relevant standards of the PRC and EHS Guidelines. Non-compliance to these standards shall be highlighted in the environmental monitoring reports. The monitoring results shall be submitted by the EMA to the IPMO, which will be included in the semi-annual/annual environmental monitoring reports to be submitted to ADB. Monitoring measures should be developed with technical details, including parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits and definition of thresholds that will signal the need for corrective actions. Monitoring and reporting procedures should also be described to ensure early detection of conditions that necessitate particular mitigation measures and document the progress and results of mitigation.

24 Internal monitoring/supervision and reporting by CSCs. During construction, CSCs will be responsible for conducting internal environmental monitoring in accordance with the monitoring plan (Table EMP-4). The monitoring results will be reported through the CSCs’ reports to the PIEs.

25 Environmental compliance monitoring by EMA. The EMA will conduct environmental monitoring in accordance with the monitoring program (Table EMP-4). A detailed cost breakdown will be provided by the EMA when the environmental monitoring program is updated at the start of each component implementation. Monitoring will be conducted during the construction and operational phases until a project completion report is issued.

26 EMP implementation monitoring and progress reporting. The PIC-ES will review the project progress and status of the EMP compliance by conducting field visits and reviewing the results of environmental monitoring conducted by the EMA. The findings of the PIC-ES will be reported to ADB through the semi-annual (during construction)/annual (during operation) environmental monitoring reports. The reports will include (i) overall project implementation progress; (ii) compliance with national regulations; (iii) compliance with environmental covenants in the Loan Agreement; (iv) progress in implementing the Environmental Management Plan (EMP)/Environmental Monitoring Program; (v) significant events or issues encountered, changes in project scope, and corresponding safeguard measures undertaken, if applicable; (vi) implementation of the GRM and complaints received from stakeholders during the report period; and (vii) conclusion and recommendations. The IPMO prepares the reports and submit the English reports to ADB for review and disclosure. A template of environmental monitoring report is shown in Annex 1 of this EMP.

27 Monitoring by ADB. In addition to reviewing the environmental monitoring reports, ADB missions will inspect the subproject progress and implementation on site at least once a year. For environmental issues, inspections will focus mainly on (i) environmental monitoring data; (ii) implementation status of the subproject performance commitments specified in the loan documents for the environment, environmental compliance, implementation of the EMP, and environmental institutional strengthening and training; (iii) environmental performance of contractors, IAs and the IPMO; and (iv) operation and performance of the subproject GRM and ongoing information disclosure and public consultation. The performance of the contractors in respect of environmental compliance will be recorded and considered in the next bid evaluations. ADB also oversees the preparation of the final Project Completion Report, which includes a section on environmental impact assessment of the Project.

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28 Project completion environmental audits. Within three months after the subproject completion, or no later than one year with permission of the local EPBs, environmental acceptance monitoring and audit reports of each subproject shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the annual environmental monitoring report. The environmental audits can be conducted together with the overall project completion acceptance inspection. The environmental acceptance report for the completed subprojects shall indicate the timing, extent, effectiveness of completed mitigation and maintenance, and the needs for additional mitigation measures and monitoring during operation. The IPMO with support by the PIC-ES shall prepare an environment chapter of the draft Project Completion Report.

29 Quality assurance (QA) /quality control (QC) for compliance monitoring. To ensure the accuracy of the monitoring, the QA/QC procedures will be conducted in accordance with the following regulations:

i) Regulations of QA/AC Management for Environmental Monitoring issued by the State Environmental Protection Administration in July 2006;

ii) QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre in 2001; and

iii) QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre in 2001.

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Table EMP-4: Environmental Monitoring Program

Subject Parameter Location Frequency Who

Implements Who

Supervises

Estimated Cost

(USD$)

Construction Groundwater SS, NH3-N, oil, CODcr, total

coliforms At each project site Impact/compliance Monitoring: Once

per day, for 2 consecutive days, 2 times per year during construction activities.

EMA IAs, PIEs 25,000

Air Inspection of dust mitigation measures (water spraying, cover transport vehicles, etc.); and maintenance of vehicles and construction equipment

Visual inspection at all construction sites.

Internal Monitoring: weekly CSCs IAs，PIEs 20,000 External Monitoring: At least four times per year

PIC-ES IAs, PIEs, EEBs

15,000

TSP, PM1019, NOx At all construction sites (at least one point upwind, two points downwind) and sensitive receivers nearby (see Chapter IV-sensitive receivers within project area of influence)

Impact Monitoring: Twice per day for 3 consecutive days, 4 times per year during construction activities.

EMA IAs, PIEs, EEBs

20,000

Noise LAeq At the boundary of all construction sites and sensitive receivers nearby (see Chapter IV-sensitive receivers within project area of influence)

Impact Monitoring: Twice per day (once in day time and once at night time) for 2 consecutive days, 4 times per year during construction activities.

EMA IAs, PIEs, EEBs

30,000

Solid Waste Garbage from work-camps and construction waste at construction sites

Visual inspection at all construction sites and work-camps

Internal Monitoring: weekly CSCs IAs, PIEs 15,000 External Monitoring: Twice per year PIC-ES,

(EEM) EEBs, IAs, PIEs

10,000

Soil erosion, vegetation

Soil erosion intensity, re-vegetation

Visual inspection at borrow pit and spoil sites

Internal Monitoring: Random check after rainstorm (rainfall＞50mm)

CSCs PIEs 15,000

External Monitoring: twice per year, and once after completion of construction

IA, PIC-ES EEBs, EA, 15,000

Slope stability, topsoil stockpile and rehabilitation of construction sites

Visual inspection of all subgrade slopes and retaining walls, culverts

Internal Monitoring: At least four times per year

CSCs IAs, PIEs 30,000

External Monitoring: Twice per year, and once after completion of construction

PIC-ES EEBs, IAs, PIEs

15,000

Compensatory plantings and re-vegetation of borrow pits,

Visual inspection at all disposal sites, borrow pits and

Internal Monitoring: At least four times per year

CSCs IAs, PIEs

50,000

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Subject Parameter Location Frequency Who

Implements Who

Supervises

Estimated Cost

(USD$) spoil disposal sites and construction sites

temporary occupied lands External Monitoring: Twice per year, and once after completion of construction

PIC-ES EEBs, IAs, PIEs

25,000

Occupational health and safety

Work camp hygiene and safety, availability of clean water and emergency response plans

Inspection at all construction sites and work-camps

Internal Monitoring: Monthly CSC

IAs, PIEs 20,000

External Monitoring: Twice per year PIC-ES City Health Bureau

20,000

Subtotal 335,000

Operation Noise LAeq All sensitive receivers along

the roads Twice per day (once in day time and once at night time) for 2 consecutive days, twice per year

EMA IAs, EEBs 10,000

Air TSP, SO2, NOx, PM10 All sensitive receivers along the roads

Twice per day for 3 consecutive days, twice per year

EMA IAs, EEBs 10,000

Soil and Vegetation

Vegetation survival and coverage rate

Re-vegetated sites (spoil disposal sites, construction sites)

Spot check, twice per year OPFs, LPMOs

EEBs, Forestry Bureau, IAs

15,000

Traffic flow and safety

Vehicle numbers and road use (against predictions), accident incidents

Project roads Road traffic monitoring program OPFs, LPMOs

City/county Traffic Bureau, IAs

10,000

Subtotal 35,000

BOD5 = 5-day biochemical oxygen demand; CODcr = chemical oxygen demand; CSC = construction supervision company; EMA = environmental monitoring agency; EEB = ecology and environment bureau; IPMO = IMAR Project Management Office; IA = implementation agency; LAeq = equivalent continuous A-weighted sound pressure level; NH3-N = ammonia nitrogen; NOx = nitrogen oxides; OPF = operators of project facilities; PM10 = particles measuring 10Âμm or less; LPMO = local project management office; SO2 = sulfur dioxide; SS = suspended solids; TSP = total suspended particle Source: TRTA consultants.

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30 Environmental Acceptance Monitoring and Reporting. Following the PRC’s management measures for inspection and acceptance of environmental protection at the completion of construction projects (MEP Decree [2001] No. 13 and 2010 amendment), within three months after the completion of the project construction, an environmental acceptance monitoring and audit report for the project shall be prepared by an organization specified under PRC’s Construction Project Environmental Protection Management Ordinance (amended 2017). The report shall be reviewed and approved by the local EEB, and then reported to ADB (Table EMP-5). The environmental acceptance report for the completed project shall indicate the timing, extent, effectiveness of completed mitigation and maintenance, and the needs for additional mitigation measures and monitoring during operation. The IPMO EHS officer with support of the PIC-ES shall prepare an environment chapter of the draft Project Completion Report.

Table EMP-5: Environmental Reporting Plan

Report From To Frequency of Reporting

A. Construction Phase Internal progress reports CSCs PIEs Monthly

Environmental monitoring reports EMA IPMOs, IAs Semi-annually

Environmental monitoring reports IPMO ADB Semi-annually

IPMO ADB Annually (stand-alone

report) Environmental acceptance monitoring and audit reports

Licensed institute

local EEBs, IPMO, IAs, PIEs, ADB

Within three months after component completion

B. Operation Phase

Environmental monitoring reports IPMOs ADB Annually until a PCR is

issued Project completion report including environmental chapter

IPMOs ADB On completion

Notes: ADB = Asian Development Bank; EHS= Environment, health and safety; EMA = Environmental

Monitoring Agency; EEB = Ecology and Environment Protection Bureau; CSC = construction supervision

company; IA = implementing agency; PIC-ES = Project implementation consultant - environment

specialist; IPMO = IMAR project management office, PCR = project completion report; PIE = project

implementing entity.


E. Institutional Capacity Building and Training

31 The capacity of the PMO, IA and contractors’ staff responsible for the EMP implementation and supervision shall be strengthened. All parties involved in implementing and supervising the EMP must have an understanding of the goals, methods, and practices of project environmental management. The EMP will address the lack of capacity and expertise in environmental management through (i) institutional capacity building, and (ii) training.

32 Institutional Strengthening. The capacities of the IPMO and IAs to coordinate environmental management shall be strengthened through a set of measures:

(i) The loan implementation support consultant shall support the IPMO with appointment of a national environmental specialist as the PIC-ES to provide support on environmental management for the project, and to guide the IPMO and IA in implementing the EMP and ensuring compliance with ADB’s Safeguard Policy Statement (SPS 2009);

(ii) The appointment of qualified staff within the IPMO and IAs as environmental coordinators in charge of the EMP coordination, implementation and site

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inspections including GRM; (iii) The commissioning of an independent ESE by the IA to provide independent

monitoring and verification of EMP implementation.

33 Training. To ensure effective implementation of the EMP, the capability of the LPMOs, IAs, PIEs, OPFs, CSCs and contractors must be strengthened, and all parties involved in implementing the mitigation measures and monitoring of environmental performance must understand the goals, methods, and the best practices for the project environmental management. The EEB and PIC-ES will offer training specific to their roles for the project. The main purpose of training is to ensure that the contractors, CSCs, PIEs, IAs, LPMOs, and OPFs are well versed in environmentally sound practices and are able to undertake all construction and operation with the appropriate environmental safeguards.

34 The training program (Table EMP-6) addresses immediate training needs, i.e. training needed for project personnel in order to ensure that involved institutes are well versed in environmentally sound practices and are able to undertake all construction activities with appropriate environmental mitigation measures. The training program also addresses the long-term capacity building needs, i.e. for the operational phase of the project. Training will be provided by qualified experts on infrastructures management, road safety, and emergency preparedness and response planning.

35 The following training programs will be delivered or organized by the Project implementation consultant (PIC)consulting company during the course of project implementation. A Training Needs Assessment will be conducted by the PIC consultants to tailor the training for the maximum impact. The trainers will include a before/after assessment in their programs to evaluate the success of the training. The PIC-ES will design an evaluation questionnaire to gauge the usefulness of the training/capacity building design and performance of the trainer. The evaluation will be taken into account in the training performance evaluation.

Table EMP-6: Indicative List of Training Program Related to Environment Training

topic Scope of Training Trainer Trainee

Procurement and contract management

ADB’s procurement guideline and bidding procedure Bidding document preparation, including EMP clauses Risk of improper procurement and mitigation measures Handling variation orders and contract management

PMC, PIC-ES

CSC, IAs, PIEs

Implementation of EMP and other health and safety requirements

EMP implementation, including implementation responsibilities, environmental monitoring, inspection and reporting, consultation and participation, mechanism of EMP review, feedback and adjustment;

GRM, including GRM structure, responsibilities and timeframe, types of grievances, eligibility assessment;

EHS considerations during project construction and operation; Monitoring and inspection methods, data collection and

processing, interpretation of data, reporting system; Communication with the public by different means (Innovative

community-based advocacy campaigns);

EEB, EED, PIC-ES

CSC, IAs, PIEs Contractors, EEBs, GRM access points, other related local bureaus

Municipal solid waste management

International and national good practices for solid waste management

Municipal solid waste management technologies and options Public awareness program and public willingness Use of performance indicators Short-, medium- and long-term planning

PIC-ES CSC, IAs, PIEs

Road safety International and national good practice for road safety Road safety audit tools and approaches Data collection for road safety Institutional responsibility and set-up Policies for improving road safety Public awareness program and education Use of performance indicators

PMC CSC, IAs, PIEs

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ADB = Asian Development Bank, CSC = construction supervision company; EA = executing agency, EHS = environment health and safety, EMP = environment management plan, EEB = environment and ecology bureau, GRM = grievance redress mechanism, IA = implementing agency, PIC-ES = Project implementation consultant - environmental specialist, PMC = project management consultant; PIE = project implementing entity. Source: TRTA consultants.

F. Consultation, Participation and Information Disclosure

36 Consultation During Project Preparation. Meaningful consultations were conducted during the EIA study and project processing. Direct public participation was conducted as an ongoing element in the development of the project components, which are described in Chapter VII of this IEE. These activities were carried out by the EIA institutes in their preparation of the domestic EIAs and by the ADB consultants following the PRC National EIA Technical Guidelines, ADB SPS (2009) and Public Communication Policy (PCP, 2011).

37 Public Consultation Plan During Project Implementation. Future plans for public involvement during the design, construction, and operation phases were developed during project processing (Table EMP-7). These plans include public participation in (i) monitoring impacts and mitigation measures during construction and operation, (ii) evaluating environmental benefits and social impacts, and (iii) interviewing the public after the project is completed. These plans include several types of public involvement such as site visits, interviews, workshops and investigation of specific issues

38 The IAs and PIEs, supported by the PIC-ES, are responsible for public participation during the project implementation. Costs for conducting the public participation activities during construction are included in the project funding.

Table EMP-7: Public Consultation and Participation Plan

Organizer Approach/Format Times/Frequency Subjects Participants

Project preparation

EIA Institute

Questionnaires and interviews

During field work for EIA

Project priority, effects, attitudes to the Project and suggestions

Residents within project construction area

ADB Consultants

Site visits, and public consultations, and interviews

One round of consultation for each component

Comments and recommendations of APs and stakeholders

Representatives of APs and stakeholder agencies

Construction

IPMO, IAs, PIEs, PIC-ES

Public consultation through questionnaire survey, site visits, informal interviews

Once a year during construction period

Adjusting mitigation measures if necessary, construction impacts, comments and suggestions

Construction workers within construction area; and residents within construction area

Public workshops At least once during peak construction period

EMP implementation progress, adjusting mitigation measures if necessary, construction impacts, comments and suggestions

Representatives of residents, APs and social sectors

Operation

IAs, PIEs, OPFs

Public consultation and site visits

At least once Effects of mitigation measures, impacts of operation, comments and suggestions

Residents, APs adjacent to project facilities

Public workshop As needed based on public consultation

Effects of mitigation measures, impacts of operation, comments and suggestions

Representatives of residents, APs and social sectors

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Organizer Approach/Format Times/Frequency Subjects Participants

Public satisfaction survey

At least once after one year of operation

Comments and suggestions Project beneficiaries

EIA = Environmental Impact Assessment, AP = Affected people, OPF = Operator of Project Facilities, PIE = Project Implementing Entity, IPMO = IMAR Project Management Office, PIC-ES = Environmental Specialist of Project implementation consultant. Source: TRTA consultants.

G. Grievance Redress Mechanism

39 A Grievance Redress Mechanism (GRM) was established as part of this EMP to receive and manage any public concerns or issues which may arise due to the project implantation. The GRM comprises: (i) a set of clear procedures developed by the IPMO to receive, record, and address any concerns which are raised; (ii) specific contact details for individuals at the PMO, IAs and the contractors, and (iii) specific contact details for local EEBs.

40 All contractors and work staff shall be briefed by the IPMO on the GRM. Contractors and workers shall be instructed to be courteous to local residents and, in the event they are approached by the general public with an issue, to immediately halt their work and report the issue to the foreman. The foreman shall immediately report the issue to the IA or IPMO for action.

41 There are multiple entry points to the GRM, including face-to-face meetings, written complaints, hotline number and telephone conversations, anonymous drop-boxes for written comments, and/or e-mail. All concerns received shall be treated confidentially and professionally. The identity of individuals shall not be circulated among project agencies or staff and shall only be shared with senior staff, and then only when there is clear justification. In the construction period and the initial operational period covered by loan covenants, IPMO shall report on GRM to ADB, including complaints and their resolution in the quarterly project progress reports and semi-annual/annual environmental monitoring reports up to the project completion report.

42 Basic steps for resolving complaints are as follows and illustrated in Figure EMP-1.

Step 1: For environmental problems during the construction and operational stages, the affected persons (APs) can register his/her complaint directly with the contractors or with the IPMO complaint center via its hotline. A joint hotline for resettlement and environment issues shall be established within the PMO. Complaints related to land acquisition and resettlement issues shall be directed to the IPMO and relevant agencies in accordance with the resettlement plan (RP). Contractors are required to set up a complaint hotline and designate a person in charge of handling complaints, and advertise the hotline number at the main entrance to each construction site, together with the hotline number of the IPMO complaint center. The contractors are required to maintain and update a Complaint Register to document all complaints. The contractors are also required to respond to the complainant in writing within 7 calendar days on their proposed solution and how it will be implemented. If the problem is resolved and the complainant is satisfied with the solution, this can be recorded by the IPMO complaint center and a follow-up shall be carried out during the next project site visit by the PIC-ES. The contractors are required to report complaints received, handled, resolved and unresolved to the IPMO complaint center immediately, and to the IAs and IPMO monthly (through progress reporting). Step 2: If no appropriate solution can be found during Step 1, the contractor has the obligation to forward the complaint to the IPMO complaint center, the IAs and local EEBs. For an oral complaint, proper written records shall be made. Once a complaint is registered and put on file, the IPMO complaint center shall assess the eligibility of the complaint,

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identify the solution and provide a clear reply to the complainant within 14 calendar days. The PIC-ES shall assist the IPMO complaint center in addressing the complaint and follow-up with the APs. The IPMO complaint center shall also inform the ADB project team and submit all relevant documents. Meanwhile, the IPMO complaint center shall convey the complaint/grievance and suggested solution to the contractors, and/or IA’s O&M unit in a timely manner. The contractors during construction and the O&M unit during operation shall implement the agreed redress solution and report the outcome to the IPMO complaint center within fifteen (15) working days. Step 3: In case no solution can be identified by the IPMO complaint center, or the complainant is not satisfied with the proposed solution, the IPMO complaint center shall organize, within 14 calendar days, a multi-stakeholder hearing (meeting) involving all relevant stakeholders (including the complainant, IAs, contractors, O&M unit, local EEB, and PMO). The hearing shall identify a solution acceptable to all, and formulate an action plan.

43 The tracking and documenting of grievance resolutions by the IPMO shall include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) regular updating of the GRM database by the IPMO environmental coordinator; (iii) processes for informing stakeholders about the status of a case; and (iv) procedures to retrieve data for reporting purposes, including the periodic reports to the ADB.

44 If the above steps are unsuccessful, persons who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism through Office of the Special Project Facilitator (OSPF) or Office of Compliance Review Panel. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected persons should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.20

20 See: http://compliance.adb.org/

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Stakeholders involved will depend upon the nature of the complaint and will include as a minimum the affected person(s), PMO, IA (for the district), and EEB. Other stakeholder agencies relevant to particular concerns can be called upon to contribute through the PLG. Note: AP = affected person, EEB = ecology and environment bureau, O&M = operation and maintenance, PMO = project management office; IA = Implementing Agency. Source: TRTA consultants.

Figure EMP-1: Proposed Grievance Redress Mechanism

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H. Cost Estimates

45 The total cost for EMP implementation comprises: (i) mitigation measures (Table EMP-2); (ii) environmental monitoring (Table EMP-4); (iii) supervision of EMP implementation by ESE, (iv) training (Table EMP-6), (v) public consultation (Table EMP-7); and (vi) the compliance monitoring, training and reporting by PIC-ES. The total cost is summarized in Table EMP-8 and is US$4,530,000. Of this total the mitigation cost of US$4,280,000 would have been included in the civil works costs in the contractor bids for implementing environmental mitigation measures for air quality, noise, water quality and solid waste on construction sites. The budget allocation is indicated in the notes accompanying Table EMP-8.

Table EMP-8: Estimated budget for environmental management plan implementation （USD$）

EMP Item

Implementing Agency Estimated Cost

Subproject 1

Subproject 2-

Subproject 3 FIs

PIE Funded ADB

Funded Erenhot Mandula

Xiao Wei Yang

Mitigation measures1 (included in civil work contract)

Soil erosion and contamination

160,000 240,000 140,000 NA 540,000

Dust control/air quality

60,000 80,000 110,000 NA 250,000

Noise and vibration 70,000 80,000 150,000 NA 300,000

Wastewater management

60,000 70,000 470,000 NA 600,000

Groundwater protection

90,000 60,000 510,000 NA 660,000

Solid waste 50,000 40,000 230,000 NA 320,000

Protection of flora and fauna

240,000 550,000 410,000 NA 1,200,000

Community health and safety

20,000 30,000 60,000 NA 110,000

Occupational health and safety

60,000 60,000 180,000 NA 300,000

Subtotal 810,000 1,210,000 2,260,000 NA 4,280,000 0

Monitoring

Internal EMP compliance monitoring2

25,000 45,000 80,000 NA 150,000 NA

Environmental impact monitoring by EMA (External)3

NA NA NA NA NA 220

Subtotal 4,430,000 220

Environment Training4 75,000

Public Consultation5 25,000

Total: 4,430,000 100,220

Grand Total: 4,530,220 1 Included in civil works contract - contractors’ bids 2 Included in environmental monitoring costs paid by PIEs 3 Included in Project Management Consultant Services and the Finance Department of IMAR will pay for the consultant service. 4 Included in Project Management Consultant Services training budget 5 Included in Project Management Consultant Services Note: Internal monitoring during construction is covered under construction costs; and during operations by the PIEs. Source: DEIA and TRTA Consultants estimates

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46 Excluded from the budget are (i) infrastructure costs which relate to environment and public health but which are already included in the project direct costs; and (ii) remuneration for the IPMO and IA environment coordinators and consulting packages for the non-structural components, (covered elsewhere in the project budget).

47 Contractors shall bear the costs for all mitigation measures during construction, including those specified in the tender and contract documents as well as those to mitigate unforeseen impacts due to their construction activities. The O&M unit shall bear the costs related to mitigation measures during operation if needed. The IAs will pay for the external environmental monitoring costs during construction, and will bear the costs related to environmental supervision during construction and operation. The IPMO will bear the costs for training, the GRM, and the LIEC.

I. Mechanisms for Feedback and Adjustment

48 Based on environmental inspection and monitoring reports, the LPMOs, PIEs shall assess, in consultation with the PIC-ES, whether (i) further mitigation measures are required as corrective actions, or (ii) some improvements in environmental management practices are required. The IPMO will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP shall be submitted to ADB for review and approval, and will be disclosed on the ADB website, if required.

49 The effectiveness of mitigation measures and monitoring plans will be evaluated by a feedback reporting system. Adjustment to the EMP will be made, if necessary. The LPMOs and their EMUs will play a critical role in the feedback and adjustment mechanism.

50 If during inspection, substantial deviation from the EMP is observed or any changes are made to the project that may cause substantial adverse environmental impacts or increase the number of affected people, then the LPMOs will immediately consult with ADB and form an environmental assessment team to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIA report including the EMP will be submitted to the ADB for review and appraisal, and disclosure. The revised EMP will be passed to the contractors, CSCs and OPFs for implementation.

J. Environmental Contract Clauses for Inclusion into Tender Documents and Civil Works Contracts

51 The following contract clauses for safeguarding the environment during construction shall be incorporated into all the tender documents and works contracts.

1. Construction time:

1.1 There shall be no night time (between 22:00 and 06:00 hours) construction. 2. Protection of air quality

2.1 Concrete batching station for civil works construction shall be sited at least 300 m downwind of the nearest household

2.2 Concrete batching plant shall be equipped with fabric filters and/or wet scrubbers to reduce the level of dust emissions.

2.3 Personal protective equipment (PPE) such as goggles, gloves and respirators shall be provided to construction workers where necessary to minimize skin exposure to and inhalation of fumes and dust.

2.4 Unpaved areas, haul roads and exposed dust-prone stockpiles shall be sprayed with water at least twice each day except on rainy days

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2.5 Frequently travelled haul roads and construction site and construction staging area exits shall be paved with gravel or asphalt.

2.6 Vehicle speed in unpaved areas including unpaved haul roads shall be controlled to ≤ 8 km/h. Speed limit signs shall be posted in these areas.

2.7 Wheel washing equipment shall be installed or wheel washing shall be conducted manually at each exit of the works area and concrete batching station to prevent trucks from carrying muddy or dusty substance onto public roads.

2.8 Dust-prone materials shall be stored in areas with shelters on four sides and on top. If such materials have to be stored in open area, cover with strong tarpaulin.

2.9 Vehicles with an open load-carrying case, which transport potentially dust-producing materials, shall have proper fitting sides and tail boards. Dust-prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with a strong tarpaulin.

2.10 Construction vehicles and machinery shall be regularly maintained to minimize exhaust emissions from these sources.

2.11 Unauthorized burning of construction waste material and refuse shall be subject to penalties for the Contractor, and withholding of payment.

3. Protection of the acoustic environment 3.1 Machinery and equipment shall be maintained and repaired regularly and properly

to keep them in good working condition and to minimize noise. 3.2 Low noise machinery or equipment with sound insulation shall be deployed when

working within 100 m from villages or townships. 3.3 Concrete batching plant for civil works construction shall be sited at least 300 m

away and downwind (for air quality purpose) from the nearest sensitive receptor. 3.4 Temporary noise barriers or hoardings shall be erected around the equipment to

shield the noise from equipment when there are residences, schools, health clinics or mosques within 50 m of the noise source.

3.5 Suitable hearing protection (such as ear muffs) shall be provided to construction workers when working near noisy machinery.

3.6 The use of horns is forbidden unless absolutely necessary. The use of whistles shall be minimized.

4. Protection of water quality 4.1 Portable toilets and small package wastewater treatment plants and/or septic tanks

shall be provided on construction sites and construction camps for the workers. If there are nearby public sewers, interim storage tanks and pipelines shall be installed to convey wastewater to public sewers. Runoff from construction sites and construction camps shall be collected and treated with drainage provisions.

4.2 Sedimentation tanks shall be installed and operated on construction sites and concrete batching station to treat process water (e.g. concrete batching) and muddy runoff with high concentrations of suspended solids. If necessary, flocculants such as polyacrylamide (PAM) shall be used to facilitate sedimentation.

4.3 Storage and refueling facilities for fuels, oil, and other hazardous materials shall be sited within secured areas on impermeable surfaces at least 300 m away from water bodies, and provided with bunds and cleanup kits. If refueling in the field is required, it shall be done from road-licensed fuel trucks away from watercourses or other environmentally sensitive areas.

4.4 Material stockpiles shall be protected against wind and runoff water which might transport them to surface waters. There shall be no storage of materials and equipment in or close to water bodies.

4.5 Any chemical spills into drains and water bodies shall be cleaned up within 24 hours of the occurrence, with contaminated soils and water treated according to Technical guidelines for site soil remediation (HJ 25.4-2014). Records must be handed over without delay to the Project Management Office and the local Environmental Protection Bureau.

5. Protection of biological resources and wildlife

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5.1 Construction workers are prohibited from capturing any wildlife during construction. 5.2 Existing trees and grassland shall be protected during construction. Trees or shrubs

shall be removed only as the last resort if they impinge directly on the permanent works or necessary temporary works.

5.3 Where a tree has to be removed or an area of grassland disturbed, trees shall be replanted and the area revegetated after construction.

6. Solid waste management 6.1 The re-use of construction waste on the project shall be maximized. 6.2 Borrow area and spoil disposal site for station construction shall be located at least

300 m from residential areas so as to reduce potential dust and noise impacts from these sites.

6.3 Spent borrow area and spoil disposal site shall be rehabilitated and vegetated within one month after closure to prevent soil erosion and dust generation.

6.4 All refuse and construction waste generated on construction sites shall be stored in designated areas and regularly removed from these locations for disposal or reuse.

7. Prevention of soil erosion 7.1 Soil erosion prevention measures shall be installed and implemented in all

construction sites, construction staging areas, borrow areas and spoil disposal sites in accordance with requirements in the approved revised environmental impact report.

7.2 The Contractor shall pay close attention to drainage provision and establishment of vegetation cover on backfilled areas to prevent soil erosion.

7.3 If restoration is carried out during periods of hot or extreme weather, ensure adequate aftercare to maximize survival of vegetation.

8. Construction site sanitation 8.1 Adequate and functional systems for sanitary conditions, toilet facilities, waste

management, labor dormitories and cooking facilities shall be provided. 8.2 The site shall be effectively cleaned and disinfected. During site formation, the site

shall be sprayed with phenolated water for disinfection. Toilets and refuse bins shall be disinfected and timely removal of solid waste shall be ensured.

8.3 Rodents on site shall be exterminated at least once every 3 months. Mosquitoes and flies shall be exterminated at least twice each year.

8.4 Public toilets shall be provided in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and designated staff responsible for cleaning and disinfection shall be appointed.

8.5 Construction site domestic wastewater shall be discharged into the municipal sewer system or treated on-site using portable systems or septic tanks.

9. Occupational safety 9.1 At least one environment, health and safety (EHS) officer shall be appointed to

manage occupational health and safety risks on construction sites. 9.2 Personal protective equipment (PPE) (such as safety hats and shoes, high visibility

vests, and safety belt and harness for above ground works) shall be provided to all construction workers. The use of PPE by all workers shall be strictly enforced.

9.3 Safety goggles, gloves and respiratory masks shall be provided to workers doing interior fit-out works.

9.4 Ear plugs for hearing protection shall be provided to workers operating and working near noisy power mechanical equipment.

10. Food safety 10.1 Food hygiene in canteens on site shall be inspected and supervised regularly.

Canteen workers must have valid health permits. 10.2 If food poisoning is discovered, effective control measures shall be implemented

immediately to prevent it from spreading. 11. Disease prevention and health services

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11.1 All construction workers shall undergo a physical examination before starting work on site. If infectious disease is found, the patient must be isolated for treatment to prevent the disease from spreading. Physical examination shall be conducted on 20% of the workers every year from the second year onwards.

11.2 Health clinic shall be established at location where workers are concentrated, which shall be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents.

11.3 Induction and training by local health departments on prevention and management of communicable diseases shall be provided.

12. Community health and safety 12.1 A traffic control and operation plan shall be prepared together with the local traffic

police prior to any construction. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance.

12.2 Construction billboards, which include construction description, schedule, responsible person and complaint phone number, shall be erected at the entry to each construction site and construction staging area.

12.3 Residents and businesses shall be informed in advance of noisy construction activities such as piling, given the dates and duration of expected disruption and made aware of the project grievance redress mechanism.

12.4 Clear signs shall be placed at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations, etc. and raising awareness on safety issues.

12.5 All construction sites shall be made secure and access by members of the public shall be discouraged through appropriate fencing, signage and/or security personnel, as appropriate.

13. Utility interruption 13.1 Contractors shall assess construction locations in advance and identify potential for

disruption to services and risks before starting construction. Any damage or hindrance/disadvantage to local businesses caused by the premature removal or insufficient replacement of public utilities shall be subject to full compensation, at the full liability of the contractor who causes the problem.

13.2 If temporary disruption is unavoidable the contractor shall, in collaboration with relevant local authorities such as power company, water supply company and communication company, develop a plan to minimize the disruption and communicate the dates and duration in advance to affected persons.

14. Grievance redress mechanism 14.1 The contractor’s environment, health and safety (EHS) officer shall be responsible

for managing the grievance redress mechanism (GRM) on site for receiving and handling complaints. In case of a complaint, the contractor shall notify the project management office within one week and shall advise on the agreed solution.

14.2 The contractor shall disclose the GRM to affected persons before construction begins at the main entrance to each construction site.

52 The contractor shall maintain and update a Complaint Register to document all complaints.

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Annex 1

Environmental Monitoring Report

Semi-annual/Annual Report

{Month Year}

Proposed Multitranche Financing Facility

People’s Republic of China: Inner Mongolia Sustainable Cross-Border Development Investment Program

Prepared by {complete and accurate name of implementing agency or external monitoring

agency} for the {complete name of the borrower} and the Asian Development Bank.

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CURRENCY EQUIVALENTS

(as of {Day Month Year})

{The date of the currency equivalents must be within 2 months from the date on the cover.}

Currency unit – {currency name in lowercase (Symbol)}

{Symbol}1.00 = ${ }

$1.00 = {Symbol_____}

ABBREVIATIONS

{AAA} – {spell out (capitalize only proper names)}

{BBB} – {spell out}

{CCC} – {spell out}

{WEIGHTS AND MEASURES}

{symbol 1 (full name 1)} – {Definition 1}



NOTES

(i) The fiscal year (FY) of the Government of {name of borrower} {and its agencies}

ends on {day month}. FY before a calendar year denotes the year in which the

fiscal year ends, e.g., FY2011 ends on {day month} 2011.

(ii) In this report, "$" refers to US dollars.

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.

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Environmental Monitoring Report

TABLE OF CONTENTS

Page

Executive Summary

• Brief description of the project

1.0 Introduction

1.1 Description of scope of report, reporting period, and overall project implementation

progress

2.0 Compliance to National Regulations

2.1 Environmental Impact Assessment Law, etc.

3.0 Compliance to Environmental Covenants from the ADB Loan Agreement

3.1 Schedule x Environment (prepare a matrix to show how compliance was

achieved)

4.0 Progress in Implementing the Environmental Management Plan/Environmental

Monitoring Plan

5.0 Significant Events or Issues Encountered, Changes in Project Scope, and

Corresponding Safeguard Measures Undertaken, if Applicable

6.0 Implementation of Grievance Redress Mechanism and Complaints Received

from Stakeholders

(Summary of any complaint/grievance and the status of action taken)

7.0 Conclusion and Recommendations

Inner Mongolia Sustainable Cross-Border Development ...

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