Environmental Monitoring Report Project Number: 44020-013 March 2018

PRC: Gansu Urban Infrastructure Development and Wetland Protection Project

Prepared by Zhangye Project Management Office, Dingxi Urban Construction and Investment Asset Management Ltd. Co., and HJI Group Corporation 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.

Environmental Monitoring Report

2nd Report of 2017 March. 2018

PRC: Gansu Urban Infrastructure Development and

Wetland Protection Project

(Reporting period – July 2017 to Jan. 20181)

Prepared by Zhangye Project Management Office, Dingxi Urban Construction and Investment Asset

Management Ltd. Co., and HJI Group Corporation for the Asian Development Bank.

1 The environmental monitoring for Dingxi was conducted in January 2018

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CURRENCY EQUIVALENTS (as of December 2017)

Currency Unit – CNY CNY1.00 = $0.15625

$1.00 = CNY6.4

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person ASL Above Sea Level BCA Bureau of Civil Affairs BLM Bureau of Land Management BOD5 Five days Biochemical Oxygen Demand CEIA Consolidated Environmental Impact Assessment CO2 Carbon Dioxide CNY Chinese Yuan COD Chemical Oxygen Demand CSC Construction Supervision Company DI Design Institute DMG Dingxi Municipal Government EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EMS Environmental Monitoring Station EMU Environmental Management Unit EPB Environmental Protection Bureau FB Forestry Bureau FSR Feasibility Study Report FYP Five-Year Plan GDP Gross Domestic Product GHG Green House Gas GPG Gansu Provincial Government GRM Grievance Redress Mechanism HDPE High Density Polyethylene LAP Land Acquisition Plan LARO Land Acquisition and Resettlement Office LB Labor Bureau LED Light-emitting Diode LIEC Loan Implementation Environmental Consultant MEP Ministry of Environmental Protection NDRC National Development and Reform Committee NGO Non-Governmental Organization NH3-N Ammonia Nitrogen NO2 Nitrogen Dioxide NOx Nitrogen Oxides OHS Occupational Health and Safety OPF Operator of Project Facilities PAM Project Administration Manual PCG Project City Government

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PHB Public Health Bureau PLG Provincial Leading Group PM10 Particulate Matter smaller than 10 micrometers PMO Project Management Office PRC People’s Republic of China PPTA Project Preparatory Technical Assistance PCB Public Security Bureau SO2 Sulfur Dioxide SPS Safeguard Policy Statement, ADB TA Technical Assistance TMB Traffic Management Bureau TN Total Nitrogen TP Total Phosphorus TSP Total Suspended Particulates US EPA United States Environmental Protection Agency WCB Water Conservation Bureau WHO World Health Organization WPC Wetland Protection Component WSC Water Supply Company ZHWNNR Zhangye Heihe River Wetland National Nature Reserve ZMG Zhangye Municipal Government ZWP Zhangye Wetland Park

WEIGHTS AND MEASURES

cm centimeter dB(A) A-weighted sound pressure level in decibels ha hectare kg kilogram km kilometer kWh kilowatt hours m meter mm millimeter m/s meters per second m2 square meter m³ cubic meters mg/l milligrams per liter mg/m3 milligrams per cubic meter mg/Nm3 milligrams per standard cubic meter Nm3 standard cubic meter 0C degrees Celsius

NOTE

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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TABLE OF CONTENTS

I. INTRODUCTION 5

A. Report Purpose and Rationale 5 B. Project Objective and Components 5 C. Project Implementation Progress 7

II. INSTITUTIONAL SETUP AND RESPONSIBILITIES FOR EMP IMPLEMENTATION AND SUPERVISION 8

A. Institutional responsibilities for environmental management 8

III. COMPLIANCE WITH ENVIRONMENT RELATED PROJECT COVENANTS 9

IV. ASSESSMENT OF PROJECT READINESS 10

V. ENVIRONMENTAL MITIGATIONS MEASURES IMPLEMENTED IN THE REPORTING PERIOD 10

VI. SUMMARY OF ENVIRONMENTAL MONITORING 11

A. Monitoring plan and responsibilities 11 B. Environmental quality targets, sampling and analytical methods 11 C. Monitoring Results for Zhangye Component 11 D. Monitoring Results for Dingxi Component 12

VII. PUBLIC CONSULTATION, GRIEVANCE REDRESS MECHANISM 14

VIII. INSTITUTIONAL STRENGTHENING AND TRAINING 15

IX. ISSUES, CORRECTIVE ACTIONS, RECOMMENDATIONS 15

X. APPENDICES 16

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I. INTRODUCTION

1. This Environmental Monitoring Report (EMR) was prepared by the Consultants from HJI Group USA, together with the two project management offices (PMOs) of Zhangye and Dingxi cities to ADB for the Gansu Urban Infrastructure Development and Wetland Protection Project (the project). It is the second EMR of 2017, covering the period from July to Jan. 2018 because the environmental monitoring in winter for Dingxi Component was conducted in January 2018. during the period there were construction activities under the following twelve (12) contracts: i) Dingxi contracts of CD1, CD3, CD4, CD5, CD6 , CD7 and CD8; and ii) Zhangye contracts of CZ1,CZ2,CZ6, CZ11,CZ13 and CZ15.

A. Report Purpose and Rationale

2. This EMR is prepared based on i) the compliance environmental monitoring reports of Zhangye and Dingxi Subprojects, provided by the Municipal Environmental Monitoring Stations (EMSs), (the two certificated sub-provincial level environmental monitoring entities); ii) the contractors and construction supervision companies’ (CSCs) internal environmental monthly reports, and iii) the city PMOs and consultants’ construction site inspections.

3. The EMR presents project implementation progress, institutional setup for EMP implementation, supervision and monitoring; environmental monitoring results, against the baselines and applicable standards; project readiness assessment; training and consultation activities; the grievance redress mechanism (GRM); as well an assessment of environmental impact mitigation measures implemented within and nearby the construction sites by the contractors during the constructions in the two project cities.

B. Project Objective and Components

4. The major project information is summarized in Table I.1.

Table I.1: Project Key Data

Loan Number: 2903-PRC

Project Title: Gansu Urban Infrastructure Development and Wetland Protection Project

Borrower: The People’s Republic of China (PRC)

Executing Agency: Gansu Provincial Finance Department

Date of Board Approval: 26 September 2012

Loan Agreement Signing: 26 Februarys 2013

Date of Loan Effectiveness: 2 May 2013

Date of Completion: 31 October 2017

Loan Closing Date: 30 April 2018

Date of Last Bank Review Mission 22-26 August 2016

Approval for Extension of Loan Closing Date

17 January 2018

Extended Loan Closing Date 30 April 2019

Implementing Agencies (IAs): i) Dingxi Urban Construction and Investment Asset Management Ltd. Co.

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ii) Zhangye Wetland Protection & Binhe New District Construction and Management Division

Project Cost and Financing Plan: The total Project budget is estimated at $255 million ($100 million for Dingxi and $155 million for Zhangye), of which $100 million (Dingxi $40 million, Zhangye $60 million) is covered by ADB loan, and the remaining is the counterpart funding.

5. The project aims at promoting balanced and environmentally sustainable urbanization, and to improve living conditions in two project cities in Gansu province: Dingxi City and, Ganzhou District of Zhangye Municipality. The project will support (i) the rehabilitation and construction of urban roads and bridges with the associated stormwater, water supply and wastewater pipe networks in Dingxi; (ii) wetland restoration and protection at the wetland park adjacent to Ganzhou District in Zhangye; (iii) the construction of roads and bridges as well as the associated stormwater, water supply and wastewater pipe networks for a new district, ‘Binhe New District’ in Ganzhou District; (iv) a new water supply plant in Ganzhou District, and (v) a capacity building in both sites.

6. The expected project impact is improved urban environment, quality of life, and higher economic growth in both cities, as well as improved wetland protection and management in the latter. The project outcome is improved and affordable municipal services delivered efficiently and reliably by the local municipal bodies. The proposed components will provide much-needed assistance for environmental protection and local social and economic development. The project includes four main components as follows:

(i) Improved urban infrastructure operating in Dingxi. This component will upgrade1 road and construct6 roads with a total length of 12.0 km and their associated facilities, including 3bridges and 14 culverts, 19.5 km of storm water pipeline, 9.0 km of sewer pipeline, street lighting, landscaping, and traffic management facilities. All roads will include pedestrian sidewalks and non-motor vehicle lanes on both sides.

(ii) Improved urban infrastructure operating in Zhangye. This component includes construction of 15 urban roads with a total length of 26.9 km, a new water supply plant (40,000m3/d) and 33.5 km of piping network, and 34.8 km of sanitary piping network connected to the existing wastewater treatment plant.

(iii) Restored and protected wetland in Zhangye. This component covers the Zhangye National Wetland Park and nearby wetlands adjacent to the city and has three subcomponents: (a) wetland protection, a total area of 5,000 hectares will be protected comprised of a main area with 4,600 hectares (ha) and a western area of 400 ha. The works will include the posting of marker stones along the boundary every 100 m and boundary posts marking the protected wetland zone. Two protection stations, one in the main area and one in the western area will be constructed and one watch tower will be built in the western area. Further, equipment for wetland monitoring, safety and security and firefighting will be included in the contract package; (b) wetland restoration, a total area of 770 ha of wetlands will be restored in this component comprising three zones, one in the east (inside the Beijiao Landscape Area near Shilixinggong) with 220 ha, an area in the center, west of the wetland experience zone (in tributary area of Heihe River area) with 270 ha, and an area in the West (in Xidahu wetland) with 280 ha. All wetland rehabilitation zones will be fenced off preventing access and hence illegal activities that threaten the ecological integrity of the wetlands. Reforestation with native species will be carried out on a total area of 11 ha. Replanting with wetland grasses and reeds will be carried out on 4 ha; and (c) wetland sustainable utilization. This area of the wetlands will receive the visitors

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and is designed to be a low-impact ecological tourism zone to experience the wetlands, watch birds and wildlife and respect its ecological integrity. Under the project 5.8kilometers (km) of pathways will be paved with a permeable surface, boardwalks will be built (3.0 km), existing boardwalks will be rehabilitated (2.8 km), and a bridge will be rehabilitated. Four display boards at the gates, 150 signs, and 500 trash bins will be placed throughout the park. Lotus flowers and trees will be creating a pleasant edge along the southern and eastern boundary of the wetland experience zone.

(iv) Project management and capacity development. This component will help the project cities develop and implement advanced project management systems and enhance the urban planning and management capacity. This component will include a capacity building and training activities related to urban planning and management, environmental management, public transport and non-motorized traffic planning and safety, and stormwater pollution control. A comprehensive capacity building and training program will increase public awareness and provide education on wetland protection and restoration and enhance wetland management and monitoring capacity of the wetland management agency in Zhangye.

C. Project Implementation Progress

7. By 31 December 2017, the awarded contracts reached to $100 million of the ADB loan (100%), the disbursement completed $72 million of the $100 million ADB loan (72%), against the time elapsed 58 months out of 72 months (81%).

8. Dingxi Project (the output 1) includes the construction of 9.52 km urban major roads, 4.01 km urban branch roads, 22.2 km stormwater drainage pipe, and 11.2 km sewage pipe. There are total 8 civil work contracts. By 31 December 2017, all the civil work contracts have been completed (Picture1 and Picture 2) .

Picture1 Dingxi Xincheng Road (completed) Picture2 Dingxi Xincheng Road Bridge

(completed)

9. Zhangye Infrastructure Project (output 2) includes the construction of 8.4 km urban major roads, 16 km secondary roads, 2.5 km branch roads, 34.8 km sewage pipe. There are total 12 civil work contracts and 2 equipment procurement contracts. By 31 December 2017, all contracts for roads were awarded, in which: 9 roads completed (Picture 3 and 4); 6 roads are under construction.

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Picture3 Zhangye Gaotaibei Road Picture4 Zhangye Linzenan Road

10. Zhangye wetland project (project output 3) includes two contracts of Wetland Protection and Restoration, and Wetland Sustainable Utilization, which were awarded by the end of 2016, and started the construction in March 2017. By 31 December 2017, 53% of Wetland Protection and Restoration(CZ13) and 87% of Wetland Sustainable Utilization (CZ15) have been completed.

Picture 5. Zhangye Wetland Picture 6 Built Fence of the Wetland

11. The details of contract award and construction status by the end of December 2017 are shown in the Appendix 2.

II. INSTITUTIONAL SETUP AND RESPONSIBILITIES FOR EMP IMPLEMENTATION AND SUPERVISION

A. Institutional responsibilities for environmental management

12. Executive Agency. Gansu Provincial Financial Bureau is the executive agency (EA) of the project. The EA is responsible for communication with ADB, loan on-lending and repayment, as well as supervision and guidance of the two city’s PMOs during the project implementation.

13. Project City Leading Group. Two project leading groups (PLGs), headed by the deputy mayors, were established, respectively under the Dingxi and Zhangye Municipal Governments. The PLGs are responsible for directing the project and providing policy guidance during the project implementation.

14. Project Management Offices. City PMOs have been set up under each PLG and are responsible for coordinating the implementation of project activities on behalf of the municipal governments. The Dingxi Urban Construction, Investment and Asset Management Co Ltd (DUCIAM), and the Zhangye Heihe Wetland Protection and Binhe New District Construction and Management Division (ZWPBCM) are the two implementing agencies (IAs) in Dingxi and Zhangye, respectively. Each PMO has established contract department, financial department, engineering department and social and

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resettlement department.

15. The PMOs are responsible for implementing the EMP, and have established an environmental management unit (EMU), in charge of (i) coordinating the implementation of the EMP; (ii) supervising the implementation of mitigation measures during project construction and operation; (iii) supervising contractors and Construction Supervision Companies’ (CSC) internal monitoring and coordinating the compliance monitoring by the EMS; (iv) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management plans; (v) reporting the EMP performance to the EA and ADB; (vi) coordinating the grievance redress mechanism (GRM); and (vii) responding to any unforeseen adverse impact beyond those mentioned in the domestic EIAs, the CEIA and the EMP.

16. Loan implementation environment consultants (LIEC). The LIECs of HJI Group, USA has been hired under the loan implementation consultancy services. The LIECs advise the PMOs, contractors and the CSCs on all aspects of environmental management and monitoring for the project. The LIECs (i) assist the PMOs to update the EMP and environmental monitoring program; (ii) verify the implementation of the mitigation measures specified in the EMP; (iii) review internal and compliance monitoring reports and prepare semi-annual environment performance/monitoring report; (iv) provide training to PMOs, CSCs, contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, GRM, etc.; (vi) identify any environment-related implementation issues, propose necessary corrective actions, and reflect these in a corrective action plan; and (vii) undertake site visits as required.

17. Construction contractors. Construction contractors are responsible for implementing relevant mitigation measures and internal monitoring during construction with the help of CSCs and under the supervision of the city EPBs. Each contractor has appointed an environment, health and safety officer (EHSO) to supervise the implementation of the on-site environment, health and safety management plan (EHSMP) which is part of the construction plan. Details on the various contractors are presented in Appendix 2.

18. Construction supervision companies (CSCs). CSCs were selected through PRC bidding procedure by the PMOs. The CSCs are responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC has one environmental engineer on each construction site to: (i) supervise contractor’s EMP and EHSMP implementation performance; (ii) conduct internal environmental inspection and monitoring; (iii) fill out monthly environmental performance forms to be submitted to the PMO (see Appendix 2).

19. Environmental monitoring stations (EMSs). The two sub-provincial level EMSs have been contracted with the two PMOs for the external environmental monitoring of ambient air, Noise and surface water. By 31 December 2017, the six monitoring reports have been submitted to ZPMO, and another six have been submitted to DPMO.

20. The table in Appendix 3 lists staff and personnel of the two PMOs, as well as the LIEC in charge of EMP implementation, supervision and monitoring.

III. COMPLIANCE WITH ENVIRONMENT RELATED PROJECT COVENANTS

21. Compliance with covenants defined in the Loan Agreement and Project Agreement that directly or indirectly refer to environment, health and safety, and the implementation of the EMP, is rated general. The project complies with most covenants, with some partly complies with. A list of loan covenants and compliance status is shown in Appendix 4.

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IV. ASSESSMENT OF PROJECT READINESS

22. The project’s readiness in terms of environmental management was assessed by the LIECs based on the indicators listed in Appendix 5 and derived from the project EMP (Table A2.10). Project readiness is rated generally satisfactory. Environmental commitments are being carried out and environmental management systems are in place for civil work contracts that have been awarded. Environment supervision is in place.

V. ENVIRONMENTAL MITIGATIONS MEASURES IMPLEMENTED IN THE REPORTING PERIOD

23. Most contractors, prior to construction, prepared site-EMPs on the basis of the project EMP. These have been submitted to the PMOs and LIECs, and are considered adequate. Contractors and the CSCs assigned specific personnel for their daily environmental management and supervision on site during construction. The EMUs and LIECs conducted regular site visits, reviewed the site-EMPs prepared by the contractors, as checked the contractors’ compliance with the EMP and their site-EMPs. A detailed assessment of the project’s compliance with the updated EMP for the pre-construction and construction phases is presented in Appendix 6. In accordance with the monthly internal environmental inspection report provided by the CSCs, the main measures implemented during construction (for contracts under implementation, see Appendix 2) are highlighted below:

1) Water spraying on construction sites and construction materials/wastes hauling routes where dust was being generated; Paid attention to dust suppression near sensitive receptors such as villages and residential areas;

2) During sub-grade curing, plastic films were replaced by multiply used geotextile to avoid the “white pollution”;

3) Trees, bushes and grass nearby earth construction sites are protected, and impacts to vegetation minimized;

4) Measures were taken on temporarily used land to protect surface soil from erosion, to ensure the land can be agriculturally (or other) used after completion of the construction;

5) Limiting construction and material handling during periods of rain and high winds to minimize soil erosion;

6) Provided spill cleanup measures at each construction site (this requirement was included in bidding documents and construction contracts); and

7) Located asphalt plants and mixers as far away as possible (at least 200 m downwind) from the nearest residential areas and other sensitive receptors.

24. The following mitigation measures specified in the CEIA and EMP need to be strengthened, improved and confirmed:

1) The demolished solid wastes shall be transported to the approved construction wastes landfill site for safety disposal; and

2) Removing all construction wastes from the site to approved spoil disposal sites;

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VI. SUMMARY OF ENVIRONMENTAL MONITORING

A. Monitoring plan and responsibilities

25. The project monitoring program focuses on the environment within the project‘s area of influence. Contractors and CSCs are conducting daily internal environmental inspections and monitoring. Inspection and monitoring results are documented in monthly internal environment inspection reports, submitted to the PMOs and the LIECs.

26. Site inspections and EMP compliance verification is conducted by the consultants jointly with the PMOs’ staff. The verification is done by means of construction site visits, reviewing contractors’ monthly construction progress reports and specific conversations with contractors and CSCs. Results of the site inspections and EMP compliance verification are reported through the EMR (i.e., this report).

27. The local EMSs were contracted by the PMOs to conduct environment compliance monitoring at construction sites, in accordance with the updated environment monitoring program show in Appendix 5 and Appendix6, which is derived from the original monitoring plan defined in the EMP and CEIA.

B. Environmental sampling and analytical methods

28. Based on the construction characteristics and the local environmental functional zoning specified by both municipal EPBs, the applicable national standards are confirmed in the EMP for evaluation of the monitoring results. The standard monitoring methods are listed in the table below.

Table VI-1 Monitoring Methods of Ambient Air, Noise and Water

Monitoring Items Method (Standard No.) Detection Limit

TSP (mg/m3) Gravimetric (GB/T15432-1995) 0.009

PM10 (mg/m3) Gravimetric (GB/T15432-1995) 0.008

NO2 (mg/m3) Saltzman method (spectrophotometry, GB/T15432-1995) 0.001

Equivalent Continuous A Sound (Leq)

Measurement Method of Building Construction Border Noise (GB12348-2008)

pH value Glass electrode method (GB6920-86) 0.01pH

CODMn (mg/L) Permanganate index (GB11914-89) 0.5

Petroleum (mg/L) Infrared spectra photograph (GB/T16488-1996) 0.04

SS (mg/L) Gravimetric method (GB11901-89) 4

Source: Environmental monitoring reports submitted by the local EMSs.

C. Monitoring Results for Zhangye Component

29. Ambient Air quality (second half of 2017). The ambient air quality was monitored by Zhangye EMS at two points for three consecutive days on 21-23 November 2017(for the contracts of CZ9 and CZ5), two monitoring points were selected at the downwind of construction sites (Danma Street and Baita Street). The three parameters of TSP, SO2 and NO2 were monitored. The monitoring data in Table IV-2 shows that the daily average concentrations of SO2 and NO2 at the two monitoring points of CZ9 (Danma Street) and CZ5 (Baita Street) in three days all meet the Grade II Standard of GB3095-2012. But the TSP is exceeded the Standard value (0.30 mg/m3) on 22 November at Danma Street and on 21 November at Baita Street, due to dry climate and strong wind in Zhangye (Table VI-2).

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Table VI-2 Ambient Air Monitoring Result in Zhangye (for the second half of 2017) (Daily Average - mg/m3)

Monitoring point Sampling date Sample No. SO2 NO2 TSP

Danma Street (CZ9)

21 November 2017

No.1-1 0.004 0.004 0.235

22 November 2017

No.1-2 0.004 0.005 0.433

23 November 2017

No.1-3 0.004 0.004 0.288

Baita Street (CZ5)

21 November 2017

No 2-1 0.004 0.004 0.436

22 November 2017

No 2-2 0.004 0.004 0.190

23 November 2017

No 2-3 0.004 0.004 0.278

Standard value (grade II of GB GB3095-2012 0.15 0.08 0.30

30. Noise. Eight monitoring points were selected for the noise monitoring at the boundaries of construction sites (four for each construction site at four boundaries), the monitoring was conducted on 23 and 24 November 2017 (once in daytime and once in nighttime). The monitoring result in Table VI-3 shows that all the monitoring data meet the national Noise Standard at Construction Boundaries (GB12523-2011) and the Grade II Ambient Noise Standard (GB3096-93).

Table VI-3 Noise – Zhangye Road Component (For the second half of 2017, Leq[dB(A)])

Monitoring points 23 November 2017 24 November 2017

Day Night Day Night

East boundary of Danma Street Site (CZ9) 44.0 39.3 45.6 39.2

West boundary of Danma Street Site (CZ9 43.9 38.8 45.2 38.4

South boundary of Danma Street Site (CZ9) 42.0 38.6 42.3 38.1

North boundary of Danma Street Site (CZ9) 41.9 37.6 41.5 37.3

East boundary of Baita Street Site (CZ5) 52.0 42.9 53.6 43.2

West boundary of Baita Street Site (CZ5 51.5 42.8 52.4 42.9

South boundary of Baita Street Site (CZ5) 51.2 42.7 52.4 42.6

North boundary of Baita Street Site (CZ5) 50.6 41.9 49.3 42.2

Standard value (GB12523-2011) 70 55 70 55

Standard value (GB3096-2008)- Grade II 60 50 60 50

31. Surface water. Two monitoring points were selected for the surface water monitoring at the wetland site, the monitoring was conducted on 22-23 November 2017. The monitoring result shows that all the monitoring data meet the Surface Water Quality Standard (GB3838-2002) – Grade III.

Table VI-4 surface water – Zhangye Wetland Component (mg/L, except Ph)

Monitoring points

Sampling date

pH CODcr NH3-N TP Petroleum LAS DO

South Lake

22 November 2017

8.10 4 0.272 0.015 0.020 0.05L 9.70

23 November 2017

8.08 4L 0.274 0.015 0.010 0.05L 9.75

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Lotus Pond

22 November 2017

8.47 9 0.161 0.021 0.030 0.05L 9.62

23 November 2017

8.49 10 0.155 0.018 0.010 0.05L 9.70

Standard value 6-9 ≦20 ≦1.0 ≦0.05 ≦0.05 ≦0.2 ≧5

A. Monitoring Results for Dingxi Component

32. Air quality. The ambient air quality was monitored at two monitoring points (Power Supply Co. of New Urban Area and Bei’an Nan Road) nearby the construction sites during 22-28 January 2018 (continuous monitoring for 7 days). The four parameters of PM10, PM2.5, NO2 and SO2 were monitored. The monitoring data in Table IV-4 below show that the average daily concentrations of SO2, NO2, PM10 meet the national Ambient Air Quality Standard of GB3095-2012-Grade II, while the PM2.5 slightly exceeded the standard.

Table IV-4 Ambient Air Monitoring Result during Construction in Dingxi (For the second half of 2017, Daily Average- mg/m3)

Monitoring points Sampling date Sample

No. SO2 NO2 PM10 PM2.5

No. 1 point – Power Supply Co. of New

Urban Area of Dingxi City

22 Jan. 2018 No.1-22 0.068 0.034 0.121 0.061

23 Jan. 2018 No.1-23 0.065 0.036 0.125 0.073

24 Jan. 2018 No.1-24 0.070 0.033 0.140 0.095

25 Jan. 2018 No.1-25 0.027 0.017 0.103 0.083

26 Jan. 2018 No.1-26 0.038 0.026 0.112 0.098

27 Jan. 2018 No.1-27 0.037 0.026 0.102 0.086

28 Jan. 2018 No.1-28 0.032 0.020 0.084 0.045

Average value 0.048 0.027 0.112 0.077

No. 2 Point – Bei’annan Road

22 Jan. 2018 No.1-22 0.041 0.046 0.130 0.087

23 Jan. 2018 No.1-23 0.052 0.043 0.142 0.085

24 Jan. 2018 No.1-24 0.036 0.041 0.135 0.087

25 Jan. 2018 No.1-25 0.024 0.036 0.100 0.088

26 Jan. 2018 No.1-26 0.022 0.043 0.099 0.080

27 Jan. 2018 No.1-27 0.019 0.028 0.096 0.075

28 Jan. 2018 No.1-28 0.013 0.021 0.081 0.051

Average value 0.037 0.030 0.112 0.079

Standard value 0.15 0.08 0.15 0.075

Source: Environmental Monitoring Report from Dingxi Municipal EMS

33. Noise (Second half of 2017). Six monitoring points were selected for the noise monitoring at the boundaries of construction sites, the monitoring was conducted on 19 and 20 July 2017 (once in daytime and once in nighttime). The monitoring result shows that all the monitoring data meet both the national Noise Standard at Construction Boundaries (GB12523-2011), and the Grade II standard of Ambient Noise Quality (GB3096-93).

Table VI-5 Monitoring Data of Noise for Dingxi (For the second half of 2017, Leq[dB(A)])

No. Monitoring points 19 July 2017 20 July 2017

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Day Night Day Night

1 Xincheng RD K0+300 47.8 38.0 52.1 39.9

2 Bei’annan RD K0+000 51.5 43.8 50.5 42.0

3 Xincheng RD K0+000 51.7 42.1 50.6 45.3

4 Xihuan RD K0+000 54.2 40.5 47.1 38.5

5 Bei’annan RD K0+790 51.0 38.3 49.1 36.5

6 Xihuan RD K0+300 48.9 40.7 49.2 36.1

Standard value (GB12523-2011) 70 55 70 55

Standard value (3096-2008) 60 50 60 50

Source: Environmental Monitoring Report from Dingxi Municipal EMS

34. Surface Water (the second half of 2017). Dingxi Municipal EMS conducted the surface water quality monitoring on 23 and 24 January 2018. Two monitoring points were selected (No.1 at 200 m upstream from Xincheng Bridge, and No.2 at downstream of Xincheng Bridge (Guanchuan River, Grade V surface water functional), the 8 parameters of pH, CODcr, NH3-N, SS, DO, TP, coliform and petroleum were monitored, with the sampling frequency of once a day for two days. The monitoring result shows that the pH, coliform, DO, TN and petroleum meet the Grade V standard of GB3838-2002, and the rest monitored parameters of CODcr and NH3-N exceed the standard. The reason for the standard exceeding was the Guanchuan River was currently the wastewater discharge channel, the domestic wastewater directly discharges into the river without treatment, not due to the proposed construction activities, the EMS concluded in the monitoring report. (The compliance of petroleum and coliform shows that the construction workers, machineries and vehicles did not impact the water quality of Guangchuan River). See the table below in detail.

Table VI-6 Surface Water Quality Monitoring in Dingxi (For the second half of 2015, Unit: mg/L, except pH and coliform)

Monitoring items

Guanchuan River Standard (Grade V) 200 m upstream from Xincheng

Bridge 200 m downstream from Nanba

road Bridge

23 Jan.2018 24 Jan.2018 23 Jan.2018 24 Jan.2018

PH 7.80 7.83 7.93 7.92 6-9

CODCr 62 67 58 69 40

NH3-N 17.8 17.0 17.3 16.4 1.5

SS 15 17 12 13 -

DO 2.9 3.0 3.3 2.7 2.0

TP 0.07 0.05 0.06 0.05 0.4

Fecal coliform (each/L)

1100 1100 1400 1400 40,000

Petroleum 0.01L 0.01L 0.01L 0.01L 1.0

Source: Environmental Monitoring Report from Dingxi Municipal EMS

VII. PUBLIC CONSULTATION, GRIEVANCE REDRESS MECHANISM

35. Public consultation for each subproject has been conducted during preparation of the domestic EIAs and the CEIA in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB’s SPS (2009). Information disclosure and public consultation included: two rounds of internet/newspaper disclosure; numerous meetings with key stakeholders, including representatives of the affected public, local authorities and sector specific organizations; informal visits to communities and

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households in the project areas; two questionnaire surveys; and a wider stakeholder meeting attended by affected people and other concerned stakeholders.

36. Public consultation during reporting period. In the reporting period (July 2017 to January 2018), there was no public consultation activity in both project cities.

37. A grievance redress mechanism (GRM) was established in each project city in compliance with ADB’s SPS (2009) requirement to prevent and address community concerns and assist the project to maximize environmental and social benefits. The GRM was presented and discussed with potentially affected persons during public consultation. There is no grievance in the reporting period.

VIII. INSTITUTIONAL STRENGTHENING AND TRAINING

38. A capacity building and training program has been defined in the EMP, which addresses immediate training needs, i.e. training needed for project personnel in order to ensure that contractors and CSCs are well versed in environmentally sound practices and are able to undertake all construction with the appropriate environmental safeguards. The plan defined in the project EMP has been reviewed by the PMOs and the LIEC.

39. During the reporting period, the training to the contractors and CSCs of wetland construction was conducted by the LIEC on 20 June 2017. The training PPT was attached as the appendix I of this EMR, and the main contents of training included the followings:

i) The valuable Zhangye Heihe River Wetland;

ii) Principles and successful cases for wetland design and engineering (ecological restoration and protection);

iii) Fragile ecological environment and water crisis along Hexi Corridor;

iv) ADB’s environmental policies and requirements for environmental management during project implementation; and

v) Environmental impacts and mitigation measures during the wetland construction.

IX. ISSUES, CORRECTIVE ACTIONS, RECOMMENDATIONS

40. The project implementation progress is basically smooth and the construction quality is generally satisfactory in the reporting period. As the resolved the resettlement problems, the project implementation will get more improvements. However, some weaknesses in the construction and project management will cause potential impact to the EMP implementation

41. EMP implementation is generally satisfactory. Contractors have assigned staff in charge of environment, health and safety inspections. CSCs have been contracted with the environmental supervision responsibility. Monthly internal monitoring reports are being prepared by contractors and CSCs, and submitted to the PMOs, which have established environment management units (EMUs). GRMs have been setup in both PMOs. So far, no complaints have been filed. EMP related issues observed during the reporting period, and corrective actions are listed below:

(i) The construction and environmental management should be strengthened through training and supervision by the PMOs and LIECs, in particular the construction related the wetland

(ii) Contractors and CSCs’ environmental staff/engineers needs to improve their environmental awareness through training; and

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(iii) The standard monthly internal environmental monitoring forms distributed by the LIECs were not submitted to the PMOs on schedule, both the contractors and CSCs should daily fill out the form, and monthly submit the forms to the PMOs.

Appendices

1. PPT of the wetland training

2. Contract award and construction status (by the end of December 2017)

3. Main EMP implementation responsibilities (December 2017)

4. Project Readiness Assessment Indicators (adjusted from EMP, Table A2.10)

5. Updated environmental monitoring program (for Zhangye wetland component)

6. Monitoring Methods of Ambient Air, Noise and Water

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Appendix 1 PPT of the Wetland Training

18

19

20

21

22

23

24

25

26

27

Appendix 2 - Contract award and construction status (by the end of June 2017)

No. Description Date of contract

awarded Contract value

(CNY10,000) Completed percentage

Remark

Dingxi Project

CD1 Beian Bei, Zhong, Nan Roads and Dingxi Bei Road 2014/7/8 ¥3,687 completed

CD2 Xincheng Road 2013/12/12 ¥2,237 completed

CD3 Xihuan Road (Chengbei Yi Road – Nan Ba Road) 2014/9/1 ¥6,519 completed

CD4 Xihuan Road (Zhengfu Bei Street – Chengbei Yi Road) 2014/9/1 ¥4,624 completed

CD5 Jiaotong Road (Nanba Road - Xianghegou Bridge） 2016/10/28 ¥3,001 completed

CD6 Jiaotong Road ( Xianghegou Bridge –Zhengfu Bei Road） 2016/10/28 ¥3,391 completed

CD7 (K0+407 & K2+058) and and Xincheng Road Bridge (K1+400) 2013/11/27 ¥2,979 completed

CD8 Greenbelt ¥2,163 completed

ED1 Road Maintenance Equipment

Zhangye Project

CZ1 Zhaowu Road 2013/10/1 ¥5,789 98%

CZ2 Gaotai Bei Road 2013/10/10 ¥3,732 99%

CZ3 Bei Sanhuan Road 2014/9/25 ¥15,798 completed

CZ4 Linsong Western Street(Minghai Western Road), Linsong Eastern

Street(Minghai East 2014/7/6 ¥3,526

completed

CZ5 Sunan Bei Raod and Baita Street 2013/12/10 ¥5,160 completed

CZ6 Linze Nan Road and Yonggu Dong Road 2014/7/6 ¥3,461 65%

CZ7 Yuguan Road(Huota Road), Nanhua Street(Liaoquan Road） 2014/7/6 ¥5,819 completed

CZ8 Nan Sanhaun Road Cancelled

CZ9 Wenchang Road (Xuefu Road, and Danma Street (Banqiao Road) 2014/7/6 ¥5,461 42%

CZ10 Xilan Road (Bei Er Huan Road) Cancelled

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CZ11 Minle Road 2013/12/1 ¥4,157 61%

CZ12 Rain and Waste Water Pipeline on Existing Road Cancelled

CZ13 Wetland Protection 2016/12/1

¥439

53%

Combined

CZ14 Wetland Restoration

CZ15 Wetland Sustainable Utilization 2016/12/1 ¥1,136 87%

CZ16 Water Supply Plant in Zhangye City

Domestic financed

Equipment Supply and Installation

EZ1 Equipment supply and Installation of Water Supply Plant in

Zhangye

Domestic financed

EZ2 Wetland Protection Equipment 2016/12/12 ¥594 completed

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Appendix 3: Main EMP implementation responsibilities (Status June 2016)

Agency/Institution Person in charge Contact information (email, phone)

Dingxi PMO Chen Yonghong， Zhang

Zhenting Cell: 0932-8216166

Zhangye PMO Fu Xueyi/wang Feng

Mail: 13993691055@163.com; Cell:

139-9369-1055

LIEC Wang Zhe, Hongshan

Wang

Mail: zwang@hjigroup.com,

hswang@hjigroup.com; Cell:

15620800703, 13114893748

Appendix 4: Project Readiness Assessment Indicators

(adjusted from EMP, Table A2.10) Indicator Criteria Assess

ment

Comments

CEIA approval

and disclosure

The CEIA was cleared by ADB, and

disclosed on ADB’s project website

Yes CEIA disclosed in

April 2012

Measures

during detailed

design

implemented

Measures defined in Table A2.1 of the EMP,

Detailed Design Phase, included in detailed

designs for each component.

Yes Complied with

For Zhangye Wetland Park, individual work

plans for each subcomponent and activity

described in the FSR are submitted to

ADB, the ZHWNNR and the Gansu

Provincial EBP.

Yes

Complied with. The

Plans and the

bidding documents

submitted to ADB

for review.

EIA for water source and raw water

transmission pipeline prepared and

approved by Gansu Provincial EPB and

Zhangye Municipal PHB2 and appraised by

ADB.

Yes

The EIA was

approved by

Zhangye EPB on

31 Dec 2013. The

approval No. is

Zhang Huan Ping

Fa [2013] No. 133

EMP update

The EMP was updated after detailed

design, and cleared by ADB

Yes The updated EMP

is included in the 1st

EMR (Sept 2014)

Compliance

with loan

covenants

The borrower complies with loan covenants

related to project design and environmental

management planning

Yes Complied with.

Consultation,

GRM

Meaningful consultation completed Yes See Section VIII.

GRM (including PPCUs) established and

discussed with / disseminated to relevant

stakeholders

Yes

Training Needs Assessments conducted as

defined in Table A2.12 of EMP

No

Environmental

Supervision in

place

• EMUs established within PMOs

• LIEC contracted

• EMSs contracted

• CSCs contracted

Yes

Yes

Yes

Yes

Complied with.

Bidding

documents

and contracts

with

environmental

Bidding documents and contracts

incorporating the environmental activities

and safeguards listed as loan assurances,

and provisions of the EMP

Yes Complied with.

2 Zhangye Municipal Public Health Bureau

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Indicator Criteria Assess

ment

Comments

safeguards

Contractor

readiness

• Environmental, Health and Safety

Management Plan (EHSMP)

established for construction sites

• Internal environmental monitoring plan

prepared

Yes

Yes

Complied with. For

contracts with

Site-EMPs

Baseline

Environmental

Monitoring

Relevant environmental baseline

monitoring conducted prior to construction

Yes Complied with. Use

the baseline data of

CEIA

Appendix 5: Updated environmental monitoring program (for Zhangye wetland component)

Subject Parameter Location Frequency Work-camp domestic wastewater, construction wastewater

pH, SS, NH3-N, CODcr, oil, total coliform

At discharge points of all construction sites and at the points where streams flowing from the construction sites enter the wetland

One sampling each day each time, four times per year

Surface water Temperature, pH, DO, SS, NH3-N, TP, CODcr, oil, anionic surfactants, flow volume

Control sites along the Heihe upstream of Binhe New District; outflow channel between Binhe New District and the west entrance of the wetland park; the Heihe within the ‘outer area’ of the park; the Heihe downstream of the confluence with Shandan River; the Shandan River north of Ganzhou Industrial Park; the proposed 10 monitoring sites/stations within the wetland park, at the 4 sites to be rehabilitated.

One sampling each day, 3 consecutive days, once before construction starts, then 6 times per year during construction

Groundwater Groundwater level, pH, NO3-N, CODMn, phenol, cyanide, As, Hg, Pb, Cr6+

One background well upstream and two monitoring wells downstream of Zhangye Wetland Park; at the proposed 10 monitoring sites/stations, at the 4 sites to be rehabilitated.

Once per day, once before construction starts, then four times per year

Air TSP, NO2, PM10 At all project sites (at least one point upwind, two points downwind); at the proposed 10 monitoring sites/stations, and at the 4 sites to be rehabilitated.

Twice per day for 3 consecutive days, once before construction, and then four times per year

Noise LAeq At boundary of all construction sites; at the proposed 10 monitoring sites/stations, and at the 4 sites to be rehabilitated..

Twice per day (once in day time and once at night time) for 2 consecutive days, four times per year

Source: Adapted from project EMP, monitoring plan.

Appendix 6: Monitoring Methods of Ambient Air, Noise and Water

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Monitoring Items Method (Standard No.) Detection Limit

TSP (mg/m3) Gravimetric (GB/T15432-1995) 0.009

PM10 (mg/m3) Gravimetric (GB/T15432-1995) 0.008

NO2 (mg/m3) Saltzman method (spectrophotometry,

GB/T15432-1995) 0.001

Equivalent

Continuous A Sound

(Leq)

Measurement Method of Building Construction

Border Noise (GB12348-2008)

pH value Glass electrode method (GB6920-86) 0.01pH

CODMn (mg/L) Permanganate index (GB11914-89) 0.5

Petroleum (mg/L) Infrared spectra photograph (GB/T16488-1996) 0.04

SS (mg/L) Gravimetric method (GB11901-89) 4

Source: Environmental monitoring reports