ASIAN DEVELOPMENT BANK

SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

SHANDONG HAI RIVER BASIN POLLUTION CONTROL PROJECT

IN THE

PEOPLE’S REPUBLIC OF CHINA

September 2005

CURRENCY EQUIVALENTS (as of 15 August 2005)

Currency Unit – yuan (CNY)

CNY1.00 – $0.124 $1.00 – CNY8.098

ABBREVIATIONS

ADB – Asian Development Bank BOD – biochemical oxygen demand COD – chemical oxygen demand EIA – environmental impact assessment EIRR – economic internal rate of return EMD – environmental monitoring department EMP – environmental management plan EPB – environmental protection bureau HRB – Hai river basin IA – Implementing agency IWM – industrial wastewater management NOx – nitrogen oxides PRC – People’s Republic of China SPEPB – Shandong Provincial Environmental Protection Bureau SPMO – Shandong project management office SS – suspended solid SWM – solid waste management TSP – total suspended particulate WM – waste management WWTP – wastewater treatment plant

WEIGHTS AND MEASURES ha – hectare km – kilometer km2 – square kilometer m2 – square meter mm – millimeter m/sec – meter per second m3/day – cubic meter per day m3/sec – cubic meter per second m3/year – cubic meter per year

NOTES

(i) The fiscal year of the Government coincides with the calendar year. (ii) In this report, “$” refers to US dollar.

CONTENTS Page

MAPS

I. INTRODUCTION 1

II. DESCRIPTION OF THE PROJECT 1 A. Municipal Wastewater Management 2 B. Solid Waste Management 2 C. Industrial Wastewater Management 2 D. Institutional Development 2

III. DESCRIPTION OF THE ENVIRONMENT 5 A. General Project Setting and Physical Resources 5 B. Ecological Resources 7 C. Economic and Social Conditions 8

IV. ALTERNATIVES 9 A. With and Without the Project 9 B. Alternative for Municipal Wastewater Management 9 C. Alternatives for Solid Waste Management 10 D. Alternatives for Pulp and Paper Mill Waste Management 11

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 11 A. Impacts Associated with Siting and Design 11 B. Impacts during Construction 11 C. Impacts during Operation 13 D. Positive Impacts 15 E. Resettlement 17

VI. ECONOMIC ASSESSMENT 18

VII. ENVIRONMENTAL MANAGEMENT PLAN 18 A. Institutional Responsibilities 18 B. Environmental Management 19 C. Environmental Monitoring 20 D. Training 20 E. Reporting 21 F. Budget 21

VIII. PUBLIC CONSULTATION AND DISCLOSURE 21 A. Public Participation during Project Preparation 21 B. Future Public Participation Plan 22

IX. CONCLUSIONS 22 A. Project Implementation Benefits 22 B. Potential Impacts and Associated Mitigation Measures 23

APPENDIXES 1. References 2. Environment Management Plan

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I. INTRODUCTION 1. The Hai river basin (HRB) has been identified as one of the three river basins in the People’s Republic of China (PRC) with the highest priority for improving water quality.1 The basin covers four provinces (Hebei, Shanxi, Henan, and Shandong), as well as Beijing and Tianjin municipalities. It is the fifth largest river basin in the PRC by area, and encompasses approximately 120 million people. The portion of the HRB within Shandong province is densely developed, and water is scarce.2 Urban and industrial development has exceeded the development of wastewater and solid waste infrastructure. Drainage from the HRB flows into Bohai bay, which is heavily polluted due to excessive chemical oxygen demand (COD), nitrogen, and phosphorus loadings. Uncontrolled wastewater reuse in agriculture has resulted in extensive pollution and contamination of the shallow groundwater aquifers, which affects the health of people who rely on drinking water from shallow wells. The water shortage and environmental pollution in the project areas are thus serious obstacles to their sustainable economic development. The Asian Development Bank (ADB) is addressing pollution control in the HRB through two ongoing projects (in Tianjin municipality and Hebei province), and one project under preparation (in Henan province). 2. The proposed Project will contribute to the control of water pollution in the HRB within Shandong province. The Project is a major urban infrastructure initiative under Shandong’s 10th 5-year plan (2001–2005). The Project will improve the urban environment and public health conditions of residents in four counties and two cities in northwestern Shandong province, by improving (i) wastewater coverage, collection, treatment, and reuse for industries in the project areas; (ii) municipal solid waste collection and sanitary landfill services; (iii) paper-mill waste management through the use of environmentally improved technology (alkali recovery) and midsection wastewater treatment; and (iv) management capacity and efficiency of the involved project agencies. 3. The Project has nine subprojects. Based upon PRC requirements, an environmental impact assessment (EIA) was conducted for each of the nine subprojects grouped under three components: (i) municipal wastewater management (MWM) for Binzhou city, Gaotang county, Linqing city, and Shanghe county; (ii) solid waste management (SWM) for Linqing city, Linyi county, and Zouping county; and (iii) industrial wastewater management (IWM) for Dezhou Changyuan paper mill and Gaotang Quanlin paper mill. The EIAs, including environmental management plans (EMPs), were submitted to and approved by the Shandong Provincial Environmental Protection Bureau (SPEPB).

II. DESCRIPTION OF THE PROJECT 4. The Project has four components: MWM, SWM, IWM, and institutional capacity building. EIAs were conducted for the first three components. Key features of the Project include the following (Table 1).

1 The other two basins are Huai and Liao river basins, and the three priority lakes are Chao Hu, Tai Hu, and Dian

Chi. In 1999 the State Council approved the HRB Pollution Prevention and Control Plan. 2 Per capita availability is only one seventh of the national average, which itself is only one fourth of the global

average.

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A. Municipal Wastewater Management 5. The component includes the following:

(i) Binzhou city (economic development zone): 40,000 cubic meters (m3)/day capacity wastewater treatment plant (WWTP), 40,000 m3/day reuse water treatment plant, approximately 65 kilometers (km) of sewer and 17 km of reuse water piping, and a 30,000 m3/day lift station.

(ii) Gaotang county; 40,000 m3/day WWTP (phase II); 40,000 m3/day reuse water treatment plant; approximately 23 km of sewer, trunk sewer, and reuse water piping.

(iii) Linqing city; 100,000 m3/day WWTP; 50,000 m3/day reuse water treatment plant; 12 km of trunk sewer, reuse water piping; and treatment effluent discharge lines.

(iv) Shanghe county; 40,000 m3/day WWTP; approximately 21 km of sewer; and two lift stations, with a 10,000 m3/day and 30,000 m3/day capacity.

B. Solid Waste Management 6. The component includes the following:

(i) Linyi county; a new lined landfill with 200 tons/day capacity; leachate collection and treatment systems, methane gas collection and extraction systems; improvement of about 1 km access road; associated rolling stock and equipment; and closure of existing landfill.

(ii) Linqing city; a new lined landfill with 400 tons/day capacity; leachate collection and treatment systems; improvement of about 1.5 km of access road; methane gas collection and extraction systems; associated rolling stock and equipment; and closure of the existing landfill.

(iii) Zouping county; a new lined landfill with 400 tons/day; leachate collection and treatment systems; improvement of about 1.2 km of access road; methane gas collection and extraction systems; 100 tons/day transfer station; associated rolling stock and equipment; treatment of leachate from the existing landfill; and closure of the existing landfill.

C. Industrial Wastewater Management 7. The component includes the following:

(i) Dezhou Changyuan paper mill; 1,800 m3/day black liquor recovery system with a 200 tons/day of solid sodium hydroxide capacity, 45,000 m3/day middle-wastewater treatment system, 15,000 m3/day white liquor recovery system with a 2,440 tons/day of solid sodium hydroxide capacity, 485 tons/day lime recovery system, associated structures, and closure of unlined black liquor lagoon.

(ii) Gaotang Quanlin paper mill; 11,470 m3/day black liquor recovery system with a 2,440 tons/day of solid sodium hydroxide capacity, 485 tons/day lime recovery system, associated structures, and closure of unlined lignin pond.

D. Institutional Development 8. The objective of this component is to develop financially sustainable, operationally efficient, and managerially autonomous utility companies in each of the seven MWM and SWM

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subprojects.3 A road map for the institutional development presents a series of gradual steps or actions for achieving the objectives. Key actions include

(i) organizational structuring including corporate governance procedures, board of directors, staffing structures, and performance-based contracts;

(ii) development of operational procedures and systems, including financial management and management information system; and

(iii) development of time-bound corporate strategy plans, focusing especially on integration of MWM and SWM processes and assets into each new company, integrating and streamlining tariff collection mechanisms, and formalizing tariff-setting processes.

3 The implementing agencies for the two paper mill subprojects are well-established companies.

pp

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Table 1: Major Features of the Project

Component

Capacity (m3/day)

Liquid Treatment Process

Sludge

Disposal

Land Requirement

(ha)

Service population

2015

Industrial Wastewater

(%)

Effluent Reuse

(m3/day) Binzhou City No. 2 WWTP

40,000 A/O Sanitary landfill

4.53 220,000 46.5 30,000

Gaotang County WWTP Phase 2

40,000 A/O Compost/ fertilizer

6.16 230,000 60.1 40,000

Linqing City WWTP 100,000 Submerged Biofilter

Sanitary landfill

5.27 30,000 91.9 50,000

Shanghe County WWTP 40,000 A/O Compost/ fertilizer

4.66 170,000 50.7 0

Component

Capacity (tons/day)

Treatment Process

Design Life (years)

Land Requirement (ha)

Service

population 2015

Leachate Treatment (m3/day)

Max. Methane

Gas (million m3/y)

Linqing City Solid Waste Management

400 Sanitary landfill 15 18.67 417,000 150 27.9 (year 2022)

Linyi County Solid Waste Management

200 Sanitary landfill 20

20.4 178,000 80 18.1 (year 2027)

Zouping County Solid Waste Management

400 Sanitary landfill 15

41.8 382,000 150 32.6 (year 2022)

Component

Capacity (treatment, recovery)

Liquid Treatment Process

Sludge Disposal

Land Requirement (ha)

Effluent Reuse (m3/day)

Quanlin Paper Mill 2,450 tons/day solids recovered 11,470 m3/day black liquor treated

Alkali recovery Compost/ fertilizer

6.2 (within the existing plant)

n/a a

Changyuan Paper Mill 200 tons/day solids recovered; black liquor 1,800 m3/day; midsection wastewater 45,000 treated

Alkali recovery; Oxidation ditch; Microfiltration

Landfill 7.9 (within the existing plant)

15,000 m3/day treated white water

A/O = anaerobic /oxidation, WWTP = wastewater treatment plant a The treated wastewater is already being reused at the Quanlin paper mill. Source(s): Feasibility Study Reports

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III. DESCRIPTION OF THE ENVIRONMENT A. General Project Setting and Physical Resources

1. Location

9. Located in the eastern PRC, Shandong province includes 17 municipalities and 139 counties, and has an area of 156,700 square kilometers (km2). Its population is 91.25 million. Shandong province borders Hebei province to the north and Bohai and Yellow Sea to the east. It connects with Jiangsu and Anhui provinces to the south, and Henan province to the west. The HRB in Shandong province covers approximately 26,000 km2 and includes four municipalities (Jinan, Liaocheng, Dezhou, and Binzhou) with 26 counties with a population of 15.5 million. 10. Northwestern Shandong province is located in the middle and lower reaches of the HRB. Most of remaining area of the province is in the Huai and Yellow river basins. The HRB in Shandong province extends south to the Yellow river, north to Hebei province, west to Henan province, and east to Bohai. Major HRB tributaries in Shandong province are Zhangweinan, Majia, Dehuixin, Tuhai, and Jindi rivers. Dehuixin river is a constructed river/canal, which was excavated in the 1960s. Major reaches of Zhangweinan river are an ancient canal. Jindi river was once in the catchment of the Yellow river, but now crosses the canal to the north and becomes part of the HRB. The project areas include the Dehuixin Majia, and Tuhai rivers, but not the Jindi and Zhangweinan rivers.

2. Topography and Geology 11. The project area is located at the southern part of the North China Plain, the alluvial plain of the Yellow river. The land is relatively flat with a natural gradient from southwest to northeast. The average elevation ranges from 10 to 30 meters (m) with a natural gradient no greater than 0.1%. The underlying geology is characterized by the layered structure, consisting of soil (mostly sand), silt, and sandy clay. In the project areas, typical soil characteristics include mostly semipermeable materials and generally permeable coefficients range from 10-4 to 10-5 cm/sec. The soil has some of salinity; problems of salinity and alkalinity are very serious in some areas. 12. Xingtai municipality, Hebei province, which is near the project area, had an earthquake as intense as 6.8 on the Richter scale in 1968. However, the project construction area has no record of intense earthquakes. According to the latest seismological classification by the State Earthquake Bureau, this region is classified as 6 on the PRC earthquake intensity scale.

3. Climate and Rainfall 13. The project area has a continental monsoon climate with sufficient illumination and distinct seasonal changes. The average temperature in the coldest month (January) is minus 6.7 degrees Celsius (oC) and 26.8oC is the hottest (July). The highest temperature recorded is 49.9oC, and the coldest is minus 25.6oC. Annual average temperature ranges from 11.9oC in Linqing to 13.1oC in Gaotang. The annual relative humidity is 65%. The average annual precipitation ranges from 379 millimeters (mm) in Gaotang to 614 mm in Shanghe, 60–75% falls during July–August. Wind directions change distinctly with the seasons. In winter, the prevailing wind direction is from the northwest; and in summer from the southwest, south, or southeast. The annual average wind speed ranges from 2.9 meters per second (m/sec) in Gaotang to 3.6 m/sec in Linyi. The top wind speed is 20 m/sec.

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4. Hydrology 14. The project area is located in the middle and downstream portions of the HRB in Shandong, which is crisscrossed by rivers, canals, and drainage ditches. The river winds its way from west to east. Surface water in the region is characterized by low to nil flows in the dry season and by relatively high water flows in the rainy summer season. All major rivers in the basin have hydrologic control facilities along their length; the flows in rivers, tributaries, and irrigation ditches are highly regulated for flood control and irrigation. Silt settles in the river channels in the eastern coastal area as a result of the flat gradients near the sea. 15. The HRB in Shandong province is arid and short of rainfall. Annual average evaporation is higher than 1,000 mm and annual average rainfall is lower than 700 mm. Because of a low precipitation and extensive development of the water resources, the natural flows of these rivers are quite low, and most have only seasonal flows. Municipal and industrial wastewaters account for a significant portion of a few rivers. Government monitoring and survey records do not report any fisheries in the urban waterways. Irrigation in the project area is mainly from surface water, shallow aquifers, and withdrawals from the Yellow river. 16. The hydrogeology of the project area is characterized by weathered rock with high salt content in shallow aquifers, typically from 2 m to 10 m below the surface. Water from these layers is mainly used for irrigation and seldom used for domestic supply. Deep aquifers, typically 200 m deep or more, are the primary water resources for municipal and industrial uses in the project areas. Groundwater is used mostly for industrial and some residential uses where potable water is insufficient or not available. In recent years, some municipalities have resorted to withdrawing water from the Yellow river for domestic and irrigation supply.

5. Water Quality and Pollution 17. Bohai, the ultimate receiving water body for the effluent from the proposed four municipal and two paper mill WWTPs, is an inland sea bordered by Shandong, Hebei, and Liaoning provinces and Tianjin municipality. It is connected to the Yellow Sea by the Bohai strait and has an area of 77,000 km2 with an average depth of 18 m. Sediments from the Hai, Yellow, Luan, and Liao rivers provide Bohai with a rich ecological system, and it is a well-known fishing area. Fishery products include the highly valued prawn and yellow croaker. Because of excessive inflows of nutrients, eutrophication is occurring in the near-shore areas of Bohai, as indicated by the frequent occurrence of red tides.4 The situation appears to be worsening in recent years. The affected area is more than 4,000 km2, more than 5% of the sea. 18. Historically, agriculture has played a major role in the HRB in Shandong province. In recent decades water pollution created by active industrial, agricultural, and social activities, especially the development of the papermaking industry, has worsened water quality in this area. According to monitoring records from 180 water quality control sections in the HRB in Shandong province, the receiving water bodies do not meet PRC requirements (Table 2).5 Water resources and reservoirs have been polluted, as well as shallow groundwater aquifers and the marine environment of Bohai.

4 Red tide is a naturally occurring phenomenon that involves large, concentrated blooms of marine planktonic

algae. These tides are thought to occur more frequently in areas of high oceanic eutrophication resulting from sewage and other similar pollution sources.

5 The PRC has five water quality standards, with class I for drinking water resources and nationally protected bodies of water, and class V suitable only for industrial use.

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19. In the project area, the proportion of industrial wastewater discharge in some counties reaches 65%. The main industries in the area are machinery, electricity generation, paper production, food processing, and high technology. Currently untreated wastewater is being discharged to receiving water bodies, whereby downstream water users are affected by these uncontrolled activities. Municipal solid wastes are collected either manually or semimechanically within the communities, and then transferred to a truck or trailer. Many years of uncontrolled municipal wastewater and solid waste discharges have deteriorated the environment, especially the surface and groundwater. This has impacted public health and/or hygiene conditions to a significant degree. Visual and odor effects have also created nuisances to quality of life. 20. Before being discharged to surface water bodies or municipal sewers, industrial wastewater should be pretreated and meet national comprehensive industrial wastewater discharge standards. All industrial wastewater dischargers must accept the discharge standards set in the local industrial pollution control plans and obtain discharge permission from local environmental protection bureaus (EPBs).

Table 2: Water Quality of Receiving Water Bodies

Component

Receiving Water Bodies

Existing Quality

Water Quality Requirement

Major Pollution Sources

Binzhou City No. 2 WWTP

Xisha river, Chao river

Worse than class V

Class V Municipal wastewater, industrial wastewater in the economic development district

Gaotang County WWTP Phrase 2

Majia river Worse than class V

Class IV County municipal and industrial wastewater from Quanlin paper mill and Shifeng Group Company

Shanghe County WWTP

Shangzhong river

Worse than class V

Class IV County municipal and industrial wastewater (hospitals, biological, food, textile)

Linqing City WWTP

Majia river through Hutao river

Worse than class V

Class IV Urban municipal and industrial wastewater (pulp and paper, textile)

Quanlin Paper Mill Guandaogou river

Worse than class V

Class V Gaotang municipal and industrial wastewater

Changyuan Paper Mill WWTP

Dehuixin river Worse than class V

Class IV Dezhou municipal and industrial wastewater

Ultimate Receiving Water Body

Bohai Indirect sources

WWTP = wastewater treatment plant Source(s): Feasibility Study Reports

6. Air Pollution

21. Recent ambient air monitoring indicates that the air quality in Binzhou and Linqing can be characterized as level 2, and in Linyi, Gaotang, Shanghe, and Zouping as levels 2–3.6 The major air pollutants are total suspended particulates, sulfur dioxide, and nitrogen oxides. The air classification is based on the index of the most polluting substance. B. Ecological Resources

22. The project area is located in a warm temperature zone. Long-term human activities have resulted in a low diversity of biological resources. Currently agricultural crops are the main vegetation. No rare or endangered species forests (secondary or native), wetland, native grass, or natural reserves are in the project area. No large wild animals inhabit the project area. Table 3 summarizes the major biota and agricultural resources. 6 Air quality is classified into five levels in the PRC; level 5 is the poorest air quality and level 1 is the best.

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Table 3: Ecological and Agricultural Resources in the Project Area

Category Item Type Major Plants Pine, cypress, larch, alamo, willow and elm Plant Planted Trees Aspen and willow Major Wild Animals Pied magpie, sparrow, yellow weasel, hare, and rat Animal Livestock and Poultry Pigs, cows, horses, sheep, geese, and ducks Major Crops Wheat, corn, millet, Chinese sorghum, beans, sweet potato Cash Crops Cotton, peanut, sesame, sunflower, vegetables

Agricultural Resources

Fruits Pear, golden Chinese date, apple, peach, grape, persimmon Source(s): Feasibility Study Reports, Environmental Impact Assessment Reports

C. Economic and Social Conditions 23. Key economic and social conditions are described in Table 4. Liaocheng, Dezhou, and Jinan municipalities each have populations of over 5 million, while Binzhou municipality has over 3 million. Except in Jinan municipality, industry is the largest contributor to gross domestic product next to tertiary and agricultural industries. Each municipality has a relatively well-developed transportation network connecting with surrounding provinces. No historically and/or culturally significant areas are located within the project areas. 24. WWTPs are operating in Binzhou with a capacity of 80,000 cubic meters per day (m3/day) and Linqing with 30,000 m3/day. Phase 1 of the Gaotang WWTP with a capacity of 40,000 m3/day will be in operation by the end of 2005. The existing WWTP capacities and sewer coverage in each of the subproject areas are insufficient, and untreated wastewaters deteriorate the receiving water bodies. The 10th 5-year plan for environmental protection of the Shandong HRB set specific COD and ammonia nitrogen (NH3-N) pollution reduction for major rivers and canals flowing into the HRB system. In Linqing city, a south–north diversion project restricts effluent discharge to Wei canal. 25. Linqing and Zouping counties both have simple sanitary landfills/dump sites in operation. Zouping county has a lined sanitary landfill, while the existing landfills in Linqing city and Linyi county are open dumps. Leachate is not collected at the existing landfills. Waste screening is required for sanitary landfills under the Ministry of Construction's technical code (2004). However, waste screening is conducted by scavengers and waste pickers, with over 90% of the recyclable wastes being recovered through the well-developed informal system prior to final disposal at landfills. Medical wastes are collected for disposal within hospitals and/or at the centralized incinerators in certain larger population centers such as Liaocheng. Other industrial, including hazardous, wastes are required to be managed by the industries themselves, either disposed of at centralized hazardous waste facilities, or otherwise recycled or reused. These wastes are not allowed to be disposed of in municipal landfills. 26. Quanlin and Changyuan paper mills are located in Gaotang and Dezhou counties. Both are the largest wastewater and pollutant dischargers. In addition, sewers in these counties are not developed and wastewater collection rates are low. Most sewer networks are combined systems. Both mills use outdated processing technologies that produce a significant volume of COD, biochemical oxygen demand (BOD), and solids in the effluent. Black liquor7 produced out of the pulp-cooking process has inorganic chemicals and a large amount of organic substances. Currently, Changyuan paper mill does not have sufficient capacity to treat black liquor and untreated black liquor is stored in the unlined lagoon. At Quanlin paper mill, untreated lignin8 is stored in an unlined pond. The unlined lagoon and

7 Black liquor is a liquid material remaining from pulp cooking in the papermaking process. 8 Lignin is a leftover substance in plants after the pulp-making process.

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pond are continuous sources of groundwater contamination. Under the 10th 5-year plans for Shandong province and Shandong HRB environmental protection, both mills are required to install an alkali recovery system, midsection wastewater treatment, and other associated facilities; and meet the required COD standard.

Table 4: Key Economic and Social Conditions for Subproject Areas Item Liaocheng Denzhou Jinan Binzhou

Linqing City

Gaotang County

Linyi County

Shanghe County

Binzhou Economic

Development Zone

Zouping County

WWTP SWM

WWTP Paper Mill

SWM, Paper Mill

WWTP

WWTP

SWM

Total (county or city) 0.7258 0.47 0.52 0.591 0.7 0.7018 Population (million) Population (urban) 0.275 0.15 0.13 0.0532 0.2387 0.146

Total (CNY million ) 6,156 6,570 4,796 5,130 1,080 11,000 GDP (2003) Average (per capita) 8,527 14,000 12,135 13,935 15,714 8,633 Entire city 957 960 1,016 1,162 49.54 1,250 Land Area (km2) Urban area 15 20.6 36 10.88 6.01 13.5

Water Supply Capacity

10,000 m3/d 2.71 3.5 4.0 3.0 3.0 0.5

WWTP Capacity 10,000 m3/d 3.0 4 0.011 0 0 0 Number of existing landfills

1 1 1 / 0 1 Domestic Solid Waste Management Capacity (ton/d) 100 110 / 0 100

Hospitals 20 2 2 2 24 8 Medical Facilities Total of sickbeds 2,500 500 1,030 110 1,000 815 Number 15 2 1 / 6 0 Cultural/Historic

Relics Number in the provincial and higher lists

5 0 1 / 1 0

GDP = gross domestic product, km2 = square kilometer, m3/d = cubic meter per day, SWM = solid waste management, WWTP = wastewater treatment plant. Sources: Feasibility study reports.

IV. ALTERNATIVES

A. With and Without the Project 27. In the project construction areas, the wastewater treatment and SWM facilities in the counties or cities have no, or insufficient, capabilities to treat the wastewater and waste generated in their service areas. Without this Project, surface water and groundwater will be subject to ongoing pollution, further affecting the water quality of Bohai. Achieving national management and planning goals for the HRB will be difficult. Water quality will continue to be unsatisfactory for the intended uses. Water environment degradation and insufficient effective waste management will cause more adverse impacts to public health. 28. With this Project, the water environment and living conditions in the project urban areas will be improved, pollutant loading to the receiving water bodies will be reduced, and drinking water sources will be protected from further pollution. Treated effluent will be reused for industrial and irrigation purposes. Thus, the Project will assist with achieving the goals for HRB water environment protection and pollution control. B. Alternative for Municipal Wastewater Management

1. Plant Sites and Sewer Alignment

29. Two alternative sites were evaluated for the proposed wastewater treatment plants in Binzhou, Gaotang, Linqing, and Shanghe. The selection criteria included type of land and

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acquisition costs, topography, proximity to rivers, length of sewage piping, availability of water and power supply systems, and convenience for transport. The city development requirements stated in the city development plan such as Gaotang wastewater management plan, urban development master plan for Shanghe, and Binzhou economic development zone master plan were also taken into consideration. Based on the comparison, the following sites were selected: northwest of Binzhou economic development zone for Binzhou WWTP, site reserved at phase 2 for Gaotang County WWTP, north of the county for Shaghe WWTP, and northwest of urban area for Linqing WWTP. 26. Sewer alignments were selected based on the topography and geography (mainly based on needs for collecting sewage) of the service area; construction methods and cost; minimized resettlement impacts; and other features, such as major roads, railways, other underground utilities, river crossings, environmental and construction impacts, operation and management, and connection to the proposed WWTP. Most selected alignments are along major roads to minimize environmental impacts, demolition and resettlement, river crossing, and costs. Alternatives for effluent outfalls were assessed for all the WWTPs. The selected sites are based on distance from the WWTP to the river, resettlement and land requirements, cost, quality standards of receiving water bodies, and national north–south water transfer policy.

2. Treatment Process 30. The four proposed municipal WWTPs will be secondary biological treatment plants. Two or three biological processes were considered in each feasibility study, including (i) conventional activated sludge process, (ii) A/O9 process for high nitrogen and phosphorus removal efficiency, (iii) oxidation ditch process, and (iv) submerged biofilter process. Factors considered included treatment efficiency in relation to raw wastewater characteristics, track record with previous implementation experiences, environmental aspects, cost, and sludge handling. Based on the various conditions and requirements, the A/O process was selected for Binzhou, Gaotang, and Shanghe WWTPs, and the submerged biofilter process for Linqing WWTP.

3. Sludge Disposal

31. Incineration, landfill, and production of fertilizer pellets were options considered for sludge disposal. Factors compared included potential adverse impacts, cost, and management. For Binzhou and Linqing WWTPs, sanitary landfill was selected as the sludge disposal method. Agreements are in place to allow disposal of sludge to a controlled sanitary landfill when plants are in operation. For Gaotang and Shanghe WWTPs, no sanitary landfills are available within reasonable distances. A compost option was selected for these two treatment plants. For the WWTP in Gaotang county, the sludge will be transported to the Jiayou organic fertilizer plant of Quanlin Paper Company, as the company has a capacity of 120,000 tons/year of compositive fertilizer. Agreements are being sought to finalize this option. For the WWTP in Shanghe, the sludge will be tested prior to reuse for composting. C. Alternatives for Solid Waste Management

1. Technology 32. Three technological options—landfill, incineration, and compost—were evaluated based on the evaluation criteria such as treatment scope, investment and operating costs, environmental impacts, required land, and waste content. Due to low organic content, low heating value and unstable ingredients, and the existing economic situations, the analysis 9 The anaerobic/oxidation (A/O) process involves activated sludge anaerobic and aerobic processes in sequence.

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concluded that a sanitation landfill is the best option for Zouping, Linyi, and Linqing counties. In terms of leachate treatment technologies, three options—ammonia removal with physical blower and A/SBR; biological treatment with catalysis oxidation technology AMT; and UASB, BAF, and active carbon absorption—were evaluated based on the treatment cost, technical feasibility, treatment efficiency, environmental impacts, and energy consumption. Due to low investment and operation costs, high efficiency (high COD removal rate), low environmental impacts, and simple operation and management, UASB, BAF, and active carbon absorption technology were selected.

2. Site 33. Three alternative sites were evaluated for the proposed Zouping, Linyi, and Linqing landfills. The selection criteria included distance from residential areas, landfill capacity, fewer difficulties in land acquisition, availability of water and power supply system, transportation, and environmental impacts. Based on the comparison, the abandoned brickyard sites were selected for Linyi and Linqing, and the state-owned farm was selected for Zouping. All sites are leeward and downstream of the wind. They all have filling capacity of more than 15 years, and water and power supply systems are available. The sites are 1–5 km away from residential areas, and have access roads. D. Alternatives for Pulp and Paper Mill Waste Management

1. Treatment Process 34. The process selection in each feasibility study was based on paper industry discharge requirements and national paper industry technical policies. Two options—acidification lignin method and alkali recovery method—were compared on the basis of treatment efficiency, environmental requirements, and economic factors. The alkali recovery option was selected for the two paper mill subprojects.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES A. Impacts Associated with Siting and Design 35. No important historical or cultural sites or rare or endangered species will be affected by project construction. Construction areas or sewer routes are not located in forests, grasslands, designated natural reserves, or scenic areas. The proposed landfill sites are all located in agricultural areas and are at least 1–5 km away from residential areas. The proposed alkali recovery units and associated facilities will be built within the respective paper mills. 36. Each subproject has adopted measures to minimize hazards or nuisance conditions to neighbors. These measures include provision of buffer zones (200–300 m) and fences; noise and air pollution abatement; and contingency plans for accidental wastewater overflows or spills, fouled waste, and untreated leachate leakage. The compartment will be installed within the leachate equalization tank to reduce water surface area and to minimize mosquitoes. Each component will include strict monitoring to enforce wastewater discharge standards. B. Impacts during Construction 37. Dust and Air Pollution. Construction activities will involve the use of construction machinery and vehicles, which produce dust and emissions. Measures to be adopted to minimize dust generation during construction include (i) enclosing smaller demolition sites; (ii) spreading water on dusty roads; (iii) maintaining water content in construction materials;

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(iv) covering or enclosing transportation vehicles, controlling the speed of vehicles, and selecting transportation routes to minimize impact on dust-sensitive receivers; (v) covering or watering open field stock files or storage sites; and (vi) minimizing on-site storage time of construction materials. All vehicles and construction machinery will be operated in compliance with relevant vehicle emission standards and with proper maintenance to minimize air pollution. Construction sites within or adjacent to farmlands may have short-term adverse impacts on the surrounding crops. Mitigation measures include covering dust generating sources, constructing retaining walls to control muddy runoff, and restoring disturbed land to minimize the adverse impacts on crops. 38. Noise. Noise and vibration will be generated during construction by heavy construction machinery, including excavators, bulldozers, concrete mixers, and transportation vehicles. Generally, construction noise exceeding 70 decibels has significant impacts on surrounding sensitive receptors within 50 m of the construction site during the day and within 100 m of the boundary at night. Major mitigation measures include (i) no night construction (from 2200 to 0600 hours) using heavy machinery near residential areas, (ii) good maintenance and proper operation of construction machinery to minimize noise generation, (iii) installation of temporary sound barriers if necessary, and (iv) selection of transport routes for large vehicles to avoid residential areas. 39. Construction Waste. Refuse generated by construction workers, construction spoils, and other wastes will have adverse impacts on the surrounding environment. On-site refuse will be stored in closed containers. Small amounts of excavated soil will be generated along the pipeline during construction; it will be stockpiled on-site before being transported to appropriate reuse or disposal sites. Temporary retaining walls for soil storage and sites filled with excavated soils will be graded. For landfill construction, a large amount of excavated soil (284,000 m3 for Zouping, 429,675 m3 for Linqing, and 410,000 m3 for Linyi) will be generated. The excavated soil will be stored on-site with retaining walls to be used to cover refuse during operation. Small amounts of soil (approximately 58,000 m3 and 56,000 m3, respectively) will need to be imported for the Linqing and Linyi landfill operations. 40. Traffic and Interference. Traffic congestion, air pollution, and inconvenience to pedestrians and shop owners are potential problems in pipeline installation, especially when using the open cut method proposed for the Project. Mitigation measures include building interim roads, selecting transport routes to reduce disturbance to regular traffic, diverting traffic at peak traffic hours, and reinstating the area to its original condition on completion of construction. With careful design and good construction practices, interference with existing underground utilities (water and gas pipelines, and communication and power cables) and resulting temporary suspension of services will be avoided. 41. Land and Surface Runoff. Construction will result in removal or relocation of trees and vegetation along sewer routes or at construction sites. These impacts will be temporary and original native vegetation is expected to recover or will be replanted after construction is completed. To avoid potential damage to sewers, trees will be removed and replanted in nearby areas whenever possible. In the rainy season, mitigation measures will include (i) providing temporary detention ponds or containment to control silt runoff, and (ii) ensuring timely restoration of disturbed land to minimize silt runoff. 42. Workers’ Health and Safety. Construction activities may cause short-term impacts on the workers’ health and safety. The construction of the alkali recovery system and associated structures will take place within the existing paper mill facilities. Specific provisions recommended for inclusion in the contracts for safe construction and continuous operation of the existing system include provision of protective equipment and training on workers’ health and safety such as safe machine operation, chemical handling, exposure to airborne pollutants, incidence and accidents, and hazardous waste handling.

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C. Impacts during Operation

1. Municipal Wastewater Management 43. Noise. Noise generated in WWTP operation comes from operation of pumps and blowers, and is usually contained within the plant. Mitigation measures will include (i) selecting low noise machines; (ii) locating high-noise equipment indoors; (iii) installing noise enclosures or buffers; (iv) locating influent and effluent pump stations in a semi-underground setting; and (v) establishing a greenbelt buffer around the plant, and between the office zone and treatment units. 44. Odor and Air Pollution. During the operational phase, bar screens, settling tanks, aeration tanks, sludge processing units, and sanitary landfills are all potential sources of offensive odors that can produce adverse environmental impacts on the neighboring community. Mitigation measures include (i) isolation of the operational zone, (ii) timely transport of the sludge dredged out of the sewers to sanitary landfills or other sites10 for final disposal, (iii) a greenbelt around the facilities and tree plantings, and (iv) adequate layout of the treatment facilities to minimize opportunities for odor to reach receptors. 45. Flood Risks. Flooding may occur if pumps/flood gates fail and result in untreated wastewater being discharged to receiving water bodies, particularly during heavy storms. Preventive measures will include (i) installing standby equipment to provide extra capacity to avoid abnormal discharge in case of failure, (ii) using a dual power supply system and emergency power generators for major equipment, (iii) implementing a proper maintenance program for major equipment, and (iv) enhancing operational monitoring. 46. Receiving Water Quality. After completion of the Project, effluent will be reused for industrial purposes: 100% reuse of treated effluent for Gaotang WWTP, 50% for Linqing WWTP, and 75% for Binzhou WWTP. The remaining effluent will be discharged into the nearby rivers, which are currently receiving untreated wastewater. With the proposed WWTP process technology, the outlet water quality after treatment will meet the Discharge Standard of Pollutants for Municipal Wastewater (GB18918-2002).11 The environmental monitoring programs described in Appendix 2 will ensure that any increase in the effluent concentration will be detected and necessary mitigation measures will be undertaken. 47. Control of Industrial Discharge to Sewers. According to the BOD and COD ratio in the individual influent characteristics, most of the industrial waste streams contributing to the four WWTPs will be biodegradable. In addition, enterprises discharging wastewater to the municipal sewers are required to meet the water quality standards.12 Thus, they are not likely to pose major toxic effects to the microorganisms and wastewater treatment processes. In case of noncompliance, the WWTP will terminate the illicit discharge either by requesting the violator to voluntarily stop or by disconnecting the discharger’s effluent pipe until compliance is confirmed. The implementing agencies (IAs) will monitor water quality in the municipal sewer systems in the project areas at least twice per year. 48. Hazards of Corrosion in Sewers. Corrosive toxic gases and liquids may accumulate in sewers and result in sewer structural damages and leakages, as well as

10 The dewatered sludge from Gaotang WWTP will be sent to the Quanlin paper mill’s reed-planting field as

fertilizer, while the dewatered sludge from Shanghe will be composted and used as fertilizer in forestry. 11 The Discharge Standard of Pollutants for Municipal Wastewater (GB18918-2002) specifies less than 100 mg/l

for COD, less than 30 mg/l for BOD5, less than 30 mg/l for suspended solids, and less than 25 mg/l for ammonia nitrogen

12 Industrial enterprises discharging to the municipal sewers are required to meet the Quality Standard for Wastewater Drained into Urban Sewers (CJ3082-1999). Local construction bureaus are responsible for monitoring and regulating noncompliance with this regulation (Author. Year. Title in italics. City.).

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danger to life. Mitigation measures will include (i) development of a “confined space entry” protocol, (ii) reasonable spacing between service holes to allow access and inspections, (iii) ventilation of sewers for dispersion of gas to minimize the risks, and (iv) implementation of emergency response plans by coordinating with the associated city agencies.

2. Solid Waste Management 49. Air Pollution and Odor. Emissions generated from vehicles and equipment will be required to strictly observe the governing air pollution regulations, and machinery maintenance will be conducted on a regular basis. Waste will be covered with soil to control hazardous gases and unpleasant odor. A greenbelt buffer around the plant will be established. Additional backfill material will be required for each landfill during operation. The estimated peak volume of landfill gas is 27.9 million m3 (in year 2022) for Linqing, 32.6 million m3 (in 2022) for Zouping, and 18.1 million m3 (in 2027) for Linyi. Gases emitted by the landfills will be collected and treated in a gas collection system. 50. Hazardous Wastes in Landfill. As the field survey confirms, hazardous wastes are collected and disposed of at the designated disposal facilities and are not likely to comprise a large volume of mixed dumping at the proposed landfills. Daily on-site and off-site (collection points) spot checks will be conducted. A targeted awareness program for collection workers and households will be carried out to increase their awareness and ensure waste segregation by households and at the collection points. 51. Waste Leakage from Waste and Transportation. During operation, wind can spread the waste; this is a potential problem for landfill. In addition, improper transportation could cause leakage from waste or loss during transportation. This can result in odor and secondary solid waste pollution. Thus, the transportation vehicles will be enclosed. Necessary retaining walls, chain-link fences, and covers will be installed to prevent waste spread during windy or rainy seasons. As part of the EMP, leachate monitoring will be implemented. After a sanitary landfill site is constructed, surrounding retaining walls and required covering materials will be installed to prevent the spread of waste. 52. Traffic and Inconvenience. Traffic congestion and inconvenience to farmers may occur, particularly during the harvest season. A consultation with farmers will be conducted to assess the likely traffic volume on the access road, and develop and implement a traffic plan. 53. Closure. Landfill closure and capping is the last and the most significant stage of landfill operation. Appropriate measures will be developed during implementation, and adequate budget for proper closure and capping will be included in the EMP to ensure landfill safety, provide for gas collection and reuse potential, minimize leachate generation, and create conditions for facility revegetation and future use. Monitoring requirements after landfill closure are briefly discussed in the feasibility study and EIAs. A closure monitoring management plan for 10 years after closure will need to be prepared for each landfill. The governments of Linyi, Zouping, and Linqing agreed to allocate adequate budget to close the existing landfills, in accordance with the national regulations.13

3. Industrial Wastewater Management 54. Air Pollution and Odor. During the operational phase, bar screens, settling tanks, aeration tanks, sludge processing units, and sanitary landfills are all potential sources of offensive odors that can produce adverse environmental impacts on the neighboring community. Mitigation measures to minimize the potential odor problem include (i) isolating 13 Technical Standard for Municipal Waste Landfill Site of Urban Area (CJ J17-2004).

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the operational zone, (ii) enclosing potential sources when practical, (iii) providing odor-scrubbing facilities when practical, (iv) storing sludge from sewer system maintenance in closed containers and transporting it on a timely basis to sanitary landfills for disposal, (v) developing a greenbelt around the facilities and planting trees, and (vi) developing an adequate layout for the treatment facilities to minimize opportunities for odor to reach receptors. 55. Receiving Water Quality. After the commissioning, the component will result in significant reduction of COD (292,200 tons/year for Quanlin paper mill and 1,550 tons/year for Changyuan paper mill). The effluent discharge quality will be within the discharge standards14 of 120mg/l for COD, 53 mg/l for BOD, 70 mg/l for suspended solids, and 6–9 mg/l for pH to be met by 2010 for the paper industry. Developed monitoring plans will ensure compliance with the discharge standards. 56. Hazardous Chemical Management. Chlorine leakage can result in serious injury to workers and residents in the vicinity and property damage. Detectors will be installed, sounding an alarm when a leak is detected. Emergency response procedures will then be followed. Other measures include minimizing the amount of chlorine stored on-site, installing alkaline recycling equipment (if a chlorine scrubber system is not installed), allocating a buffer zone around the chlorine warehouse and workshop, providing gas masks and oxygen tanks for use by workers, and providing periodic training and practice sessions on safety operation procedures. Both mills have established hazardous chemical and waste management, and adequate capacity and procedures in place to ensure safe chemical handling and management. D. Positive Impacts 57. Each of the subprojects will make a significant contribution to pollution reduction targets set by the Shandong HRB environmental protection plan. In addition, they will contribute to improving the living conductions and public health of the project counties and cities. The following is a summary of the positive environmental impacts for each component.

1. Municipal Wastewater Management 58. Under the Shandong HRB environmental protection plan (2001–2005), the COD and NH3-N discharge volume in Shandong province needs to be limited to 69,000 tons/year and 12,700 tons/year respectively in 2005. Within the province, the four municipalities must meet the pollution reduction targets. As shown in Table 5, the proposed MWM component will result in a significant pollutant reduction for COD, BOD, and NH3-N, contributing to the improvement of the receiving water quality and the HRB. The improved wastewater collection systems will contribute to meeting the pollutant quota established for the municipalities and Shandong province as a whole. Except for Shanghe WWTP, 50–100% of the treated wastewater will be recycled for industrial and agricultural reuse; this will promote water conservation in this water scarce region.

14 Those 2010 targets for COD, BOD, SS, and pH are set by the 10th 5-year plan for Shandong HRB

environmental protection (DB37/336-2003).

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Table 5: Contribution to the Hai River Basin

BOD = biochemical oxygen demand, COD = chemical oxygen demand, HRB = Hai river basin, NH3-N = ammonia nitrogen, t/y = ton per day, WWP = wastewater treatment plant. a. The proposed Linqing WWTP site is located close to Wei canal. The effluent discharge from the proposed

WWTP in Linqing will be diverted to Huotahe river flowing into the Majia river because of the south–north water transfer project.

Source(s): Feasibility Study Reports

2. Solid Waste Management 59. Leachate as well as odors and pests generated from the existing landfills present significant threats to the local groundwater, nearby residents, and environment. The improvement of collection, transport, and treatment of municipal waste will reduce contamination of the urban environment and minimize the waste discharge into the aquifer. The governments of Linyi, Zouping, and Linqing agreed to allocate budget to close the existing landfills, in accordance with regulation CJJ 17-2004, within the agreed time frames.15 Closing the existing unsanitary landfills with proper cover will limit water from entering the sites and limit leachate generation. Since groundwater is the main drinking source of water in the project areas, minimizing the waste discharge (leachate) into the aquifer will reduce the exposure of communities to untreated drinking water. 60. Local governments of Linyi and Zouping subprojects expressed interest in pursuing the CDM opportunity. The preliminary assessment indicates that the subprojects for Linyi and Zouping counties have potential to reduce a combined 500,000–750,000 tons of CO2 equivalent of greenhouse gases during the first 10 years of the Project under conservative assumptions for gas production and collection. While further due diligence16 on financial, technical, and institutional capacity is required, the CDM mechanism is likely to provide total additional revenues of $3.5 million–$7.5 million to the project entities.

3. Industrial Waste Management 61. The proposed alkali recovery processes will reduce a significant volume of COD (292,200 tons/year for Quanlin paper mill and 1,550 tons/year for Changyuan paper mill) and will enable both mills to meet the COD limit set by the Shandong HRB environmental protection plan.17 The new process will eliminate the need for unlined lagoons, which are currently used for storing untreated black liquor and lignin, and are major continuous sources of groundwater contamination. Both IAs agreed to close the existing lagoons within 6 months after construction begins (Changyuan paper mill) and by June 2006 (Quanlin paper mill). By eliminating a black liquor pretreatment, the new process at the Quanlin paper mill will eliminate high concentrations of inorganic salts in the wastewater, which makes the treated

15 By the end of 2007 for Linqing, within 1 year from the date the proposed landfill operation begins for Linyi, and

by the end of 2005 for Zouping. 16 Further decisions and detail procedures on clean development mechanism can be made during the loan

appraisal stage, including the extent of ADB support. 17 For straw-pulp paper mills, the COD concentrations in the effluent of straw-pulp paper manufacturing plants

need to be reduced to 300 milligrams/liter by 2007 and 120 milligrams/liter by 2010.

Item Pollutant Linqing WWTP Gaotang WWTP Shanghe WWTP Binzhou WWTP Liaocheng Jinan Binzhou COD (t/y) 28,700 2,200 8,100

Pollution limit (2005)

NH3-N(t/y) 12,700 600 1,600 COD (t/y) 12,045 3,650 3,504 3,650 BOD(t/y) 3,833 1,314 2,044 2,482

Pollutant reduction by the Project NH3-N(t/y) 456 219 146 146 Affected HRB (direct) Wei canala

(Huotahe river flowing into Majia

river)

Majia river (Guandao ditch)

Dehuixin river (Shangzhong

river)

Chaohe river (Xisha river)

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wastewater usable for irrigation. The new alkali recovery processes will recover spent chemicals that will be reused and generate energy and water savings. 62. In addition to environmental benefits, the socioeconomic impact of the Project is of particular importance. By improving the technological processes to meet the required pollution targets for COD and continuing their operation, both paper mills will provide sustained socioeconomic benefits to their employees (11,000 employees for Quanlin paper mill and 1,286 for Changyuan paper mill) and associated industries and commercial establishments.

4. Health Benefits 63. The improvement in wastewater collection systems, solid waste management, and paper producing processes will contribute to the enhancement of urban environment and public health conditions by reducing exposure of the community to solid wastes and untreated wastewaters. Improved environmental conditions as a result of the Project are expected to decrease water-related and vector-borne diseases in the project areas. Based on the reported diseases and associated medical costs, the estimated health cost (comprising direct medical costs and income lost) for four counties and two municipalities is CNY4,385,500 for the base year of 2004. The Project’s health benefit is expected to accrue during the project period of 2009–2024. With the Project, the net present value of the health benefit (health cost savings) during the project operating period is CNY20.6 million (about $2.5 million equivalent). The elderly, women, children, and poor are the most vulnerable to water-related diseases, and will benefit disproportionately from the improvement in sanitation, urban environment, and water quality. Detailed health benefit estimation and monitoring is described in the Supplementary Appendix. E. Resettlement 64. Impacts related to land acquisition and resettlement include (i) permanent acquisition of land for the WWTP, SWM, and pumping stations; (ii) temporary use of land for installation of trunk sewers and water pipelines; and (iii) demolition of a few structures. Seven subprojects have land acquisition and resettlement impacts. Resettlement requirements have been carefully considered and incorporated into the project design with the view to minimize their impacts. 65. Land acquisition and demolition for all components will affect seven villages and three enterprises. In total, about 101.5 hectares will be permanently acquired by the Project, of which 37% is classified as cultivated farmland. Permanent land acquisition will affect 123 households and three enterprises, approximately 610 people. The Project will also require temporary acquisition of 39 hectares, most of which is urban roadways. No households will need to be relocated. About 30,450 m2 of structures will be demolished. These are old or abandoned buildings belonging to the enterprises. 66. Individual resettlement plans for seven subprojects have been prepared in accordance with the PRC Land Administration Law (1998), State Council Decision to Deepen Reform and Strictly Enforce Land Administration (2004), and ADB’s Policy on Involuntary Resettlement.18 The resettlement plans provide a socioeconomic profile of the people affected and scope of impacts, and address issues related to their entitlements to compensation, legal framework, public consultations, grievance procedures, rehabilitation measures, budget, and implementation milestones. The endorsement letters of the

18 ADB. 1998. The Bank’s Policy on Involuntary Resettlement. In Handbook on Resettlement. Appendix 1.

Manila.

18

resettlement plans for the seven subprojects, in Chinese and English, were delivered to ADB during the loan Fact-Finding Mission. 67. The total cost estimate for land acquisition and resettlement is $9.36 million, equivalent to CNY75.92 million in 2005 prices, including contingencies, taxes, and duties.

VI. ECONOMIC ASSESSMENT 68. The Project is estimated to cost approximately $159.05 million, comprising $105.98 million in foreign exchange cost and $53.08 million equivalent in local currency cost. Economic internal rates of return for SWM and IWM subprojects are 24.7% for Linqing SWM, 18.8% for Linyi SWM, 18.9% for Zouping SWM, 22.8% for Quanlin IWM, and 18% for Changyuan IWM. All economic internal rates of return are higher than the economic opportunity cost of capital assumed at 12%. 69. The total estimated costs of environmental mitigation and monitoring measures are estimated at about $1,465,500 (CNY11,885,600), including design and mitigation measures during construction, initial costs for mitigation measures during operation, and environmental monitoring costs during construction and operation. Some other environmental costs are not included in the environmental mitigation and monitoring cost estimates, but included in civil work and equipment. Additional environmental training costs are also budgeted for to strengthen the EMP capacity of the IAs, municipal and county project management offices, and local EPBs. 70. The quantitative environmental benefit-cost analysis could not be completed due to inadequate information. In the qualitative benefit assessment, the Project will provide the most sustainable prospect of reducing waterborne pollution, improving the quality of surface water and groundwater, improving living conditions, and providing opportunities for sustainable local economic and social development. A significant reduction of COD and BOD of the receiving rivers will contribute to the improved urban environment by reducing exposure of the community to untreated wastewaters and process chemicals with associated impact on public health. Improvement in wastewater and solid waste collection, transport, and disposal will reduce contamination of the urban environment and contamination of the relevant aquifers. The improved papermaking processes will reduce the pollution load into the local environment, and save water, chemical, and energy consumption.

VII. ENVIRONMENTAL MANAGEMENT PLAN 71. The EMP covers all phases of the Project from preconstruction through commissioning and operation, and aims to ensure the monitoring of environmental impacts and implementation of environmental mitigation measures (Appendix 2). The EMP will be incorporated into the construction contracts and operation management plans, and be implemented by the contractors or IAs under supervision of the Shandong project management office (SPMO). Effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether to continue or make improvements. Improvement measures need to be confirmed through stipulated environmental management procedures. A. Institutional Responsibilities 72. The Shandong provincial government is the Executing Agency and has established a project leading group headed by the vice governor of the province and a project management office (SPMO) headed by the vice director of Shandong Provincial Construction Bureau. SPMO includes members from the SPFB, SDRC, and SPEPB. The IAs are responsible for project implementation. SPMO and the IAs will each nominate

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dedicated, trained, and qualified environment specialists to undertake environmental management activities and ensure effective EMP implementation. The local EPBs are responsible for enforcing the environmental regulations and conducting compliance monitoring. Table 6 describes the environmental responsibilities of the main institutions and Table A2.1 in Appendix 2 shows the environmental responsibilities at different phases of the Project.

Table 6: Institutional Responsibilities for the Environmental Management Plan

Institution Responsibility Project Leading Group • Overall supervision and management Shandong PMO • Overall coordination and supervision responsibilities, including preparing

and submitting the semiannual EMP implementation reports

Local PMOs • Supervision, coordination, and reporting to Shandong PMO IAs • Overseeing EMP implementation and developing its implementation details;

supervising implementation of mitigation measures during construction; implementing training programs; incorporating environmental management, monitoring, and mitigation measures into the construction and operation management plans; developing and implementing internal routine environmental monitoring; and reporting EMP implementation progress to SPMO and responsible agencies

Local EPBs • Conducting compliance monitoring and providing monitoring results to the

IAs and Shandong EPB EMP = environmental management plan, EPB = environmental protection bureau, IA = implementing agency, PMO = project management office, SPMO = Shandong project management office. Source(s): Subprojects’ Individual Environmental Assessment Reports

73. In accordance with the EMP, the IAs will establish environmental management offices within their project management departments and allocate qualified staff to implement the EMP during construction and operation.19 These offices will be responsible for (i) overseeing EMP implementation and developing its implementation details, (ii) supervising implementation of mitigation measures during construction, (iii) implementing training programs; (iv) preparing and submitting semiannual EMP progress reports to SPMO and ADB; (v) developing and implementing internal routine environmental monitoring, (vi) reporting the environmental monitoring results to the local EPBs during operation, and (vii) responding to public complaints and taking necessary measures for unexpected impacts during construction and operation. International consultants will assist SPMO and the IAs to implement and report EMP progress. 74. Local governments will ensure that the IAs have financial and managerial autonomy to operate the project facilities, allowing them to fully administer their environmental management responsibilities, including the environmental monitoring plan and EMP presented in the relevant EIAs. Local governments and the IAs will ensure that any adverse environmental impacts created by the Project are minimized by implementing the mitigation measures. B. Environmental Management

75. As par of the overall EMP, specific procedures will be developed during implementation. For all components during construction, the procedures related to waste disposal and chemical handling, workers’ health and safety procedures, emergency plans,

19 Both mills are registered companies. They have environmental management offices including research

divisions and have adequate staff capacities to implement the EMP.

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and traffic management plans will be developed and included in the contracts. For WWTP operation, sludge disposal plans and chemical handling will be developed and included in the operation and maintenance. The IAs agreed to allocate adequate budget to properly close the existing landfills. The appropriate procedures and plans will be developed and implemented. The Quanlin and Changyuan paper mills have hazardous chemical management plans and emergency responses procedures in place. The developed training plans will strengthen their environmental management activities. C. Environmental Monitoring

76. Environmental monitoring will be carried out by the IAs and local EPBs. Each IA is responsible for implementing the environmental monitoring programs during construction and operation in accordance with the relevant environmental regulations. Table A2.2 of Appendix 2 describes the monitoring program for each component with required budget. These monitoring programs and budgets will be included in the construction and operation contracts. In addition, the IAs will monitor the environmental benefits of the Project using the following indicators: (i) water quality of the receiving rivers and volume of treated wastewater for industrial and irrigation use for municipal and IWM components, (ii) volume of leachate, and (iii) public satisfaction measured by of surveys. The environmental monitoring departments of local EPBs are responsible for enforcing the environmental regulatory requirements in the project area and will conduct compliance monitoring. For the wastewater treatment plans, local EPBs have computerized monitoring systems to monitor the outlet discharge quality. 77. The monitoring results will be used to evaluate the (i) extent and severity of environmental impacts as compared with the predicted impacts, (ii) performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts, and (iv) overall effectiveness of the project EMP. Effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. Modification of measures required by the EMP will be performed, if necessary. Different levels of EPBs and SPMO play critical roles in this feedback and adjustment mechanism as shown in Table A2.1 of Appendix 2. 78. At the beginning of the Project, SPMO, IAs, and consultants will develop project performance management system procedures to systematically generate data on inputs and outputs of the project components and the agreed environmental and related social economic indicators to be used to measure project impacts. SPMO and the IAs will refine the project performance management system framework, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 6 months after loan effectiveness. D. Training 79. To strengthen staff capacity for project implementation, training programs will be developed and incorporated into the construction and operation management plans. The environment specialists of SPMO and the IAs will receive training in environmental management, monitoring and supervision, mitigation planning, emergency response, environmental regulations, and other environmental management techniques. In addition, awareness training on hazardous wastes will be carried out for households and waste collectors to avoid mixed disposal and mixed collection. Funding of this training will be included in the project budget and in the operation and maintenance budgets (Appendix 2, Table A2.5).

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E. Reporting 80. Results from the environmental monitoring for both construction and operation phases will be submitted by the contractors and operators to the local EPB and project management office, and forwarded to SPMO on a quarterly basis. In addition, contractors and operations will submit (i) semiannual progress reports on project implementation, (ii) an annual report, and (iii) a project completion report no later than 3 months after project completion. Based on the submitted monthly monitoring results, SPMO will prepare and submit semiannual EMP progress reports to ADB. The EMP progress report will include information regarding project implementation, and environmental performance of the contractors, IAs, and project management consultants. Progress reports will emphasize progress made in the areas of water quality improvements, monitoring results, implementation of mitigation measures, environmental compliance, training, and capacity building progress. In addition to the semiannual EMP reports, SPEPB, and/or ADB may request that further actions to be taken for environmental mitigation, as they deem necessary, and may determine further mitigation measures for different stages. F. Budget

81. The total cost of environmental mitigation and monitoring measures is estimated at about $1,465,500 (CNY11,885,600), including design and mitigation measures during construction, initial costs for mitigation measures during operation, and environmental monitoring costs during construction and operation. Some of the mitigation costs are also included in the civil work and equipment allocation. Institutional strengthening and training, including environmental training as well as the public consultation plan, are budgeted aside from the environmental mitigation costs to strengthen the EMP capacity of the IAs, municipal and county project management offices, as well as EPBs. The local departments of budget of Zouping, Linqing, and Linyi confirmed that they will provide adequate budget to close the existing landfills within the set time frames. Before implementing the monitoring plan, responsible agencies will present a detailed breakdown of the estimated budget. During project implementation, the costs required can be adjusted based on actual requirements. Similarly, the IAs will include required budgets in the operation and management contracts.

VIII. PUBLIC CONSULTATION AND DISCLOSURE A. Public Participation during Project Preparation 82. Two rounds of public consultation were conducted during the course of environmental assessment. In mid-December 2004, EIA public consultation workshops were conducted in four locations (Jinan city, Gaotang county, Linyi county, and Zouping county) to solicit inputs directly from the affected communities. During January–March 2005, surveys ware undertaken for all nine subprojects to collect information and suggestions on project priority, impacts, and attitudes toward the Project. Samples of project beneficiaries and people affected were selected by EIA preparation agencies, including residents of various ages, education, occupation, gender, and living various distances from construction sites. The people surveyed were randomly selected. 83. The second public consultation was conducted in late April 2005 in Zouping county. Representatives from the nine subproject areas attended the joint public workshop to share different concerns and issues related to the Project. A total of 225 and 210 persons attended the first and second rounds of workshops, respectively, including affected residents; representatives of the local people’s congress; political consultative conference; industrial, commercial, and religious sectors; high school and college students; woman’s organizations; and others.

22

84. The results of surveys and consultation revealed that most people considered the Project necessary and believed it would improve the environment and living conditions. However, some raised some concerns related to the location and design. The main environmental concerns raised at the workshops are (i) location of the proposed landfill sites, (ii) damage to land and compensation, (iii) construction and operation noise, (iv) foul odor, (v) traffic impacts, and (vi) resettlement issues. Most of the concerns were considered in the project design and mitigation measures, and the staff from SPMO, IAs, and design institute explained how each concern was addressed in the proposed subprojects. B. Future Public Participation Plan 85. Plans for public involvement during operational stages are included in Table A2.3, Appendix 2. These plans include public participation in (i) monitoring impacts and mitigation measures in the construction and operation stages, (ii) evaluating environmental, economic, and social impacts, and (iii) surveying public opinion after project completion. The plans include several types of public involvement: site visits, workshops, investigation of specific issues, and interviews. The plans will be incorporated into the project construction and operation management plan.

IX. CONCLUSIONS A. Project Implementation Benefits 86. The EIA for each component concluded that the Project will improve the quality of the water environment, drinking water, and urban living conditions. The multisector and multimedia approach to pollution prevention in the HRB will provide the most sustainable prospect of reducing waterborne pollution, achieving the surface water quality targets, improving living conditions, and providing opportunities for sustainable local economic and social development. 87. The improved wastewater collection systems will contribute to a significant reduction of COD (75%) and NH3-N (50%) of the receiving rivers, which will enable attainment of the COD and NH3-N limits set by the 10th 5-year plan for Shandong HRB environmental protection for each project prefecture. The improvement in the wastewater treatment and collection will improve the urban environment by reducing exposure of the community to untreated wastewater with its associated impacts on public health and nuisance. The industrial reuse of treated effluent will meet the need for water conservation facing the project areas. 88. Under the solid waste management component, improvement of collection, transport, and disposal will meet the need for treating the growing volume of garbage in an environmentally sound manner and reduce contamination of the urban environment. New sanitary landfills with leachate and methane collection will minimize the waste discharge into the aquifer reducing water contamination and greenhouse gases. 89. The new alkali recovery processes will reduce a significant volume of COD (292,200 tons/year for Quanlin paper mill and 1,550 tons/year for Changyuan paper mill). It will reduce the use of chemicals in the pulp papermaking and wastewater treatment processes, and save energy and water consumption. The cleaner production processes will reduce the pollutant in the final effluent discharge to the rivers, which will enable the mills to meet the COD target of 120 mg/l by 2010 from 400 mg/l in 2005. With the new alkali recovery processes, the existing unlined lagoons for treated black liquor and lignin storage will be closed and the risks of groundwater contamination will be reduced.

23

B. Potential Impacts and Associated Mitigation Measures 90. Adverse impacts from the Project on the social environment will be minimal and will be mitigated. People affected by land acquisition will be compensated financially for loss of houses and ancillary buildings, land, livelihood productivity, and land improvements. If required, livelihood restoration and alternative employment will be provided to minimize potential negative impacts. Mitigation measures for social impacts and the aim of the resettlement plan are to ensure that the livelihoods of those affected are at least maintained after project implementation. 91. During construction and operation, relatively small amounts of irreplaceable resources will be used for the Project. Proper measures and good engineering will be applied to mitigate the short-term construction impacts. Construction and operation of each project component will concur with the planned mitigation measures. Thus, adverse impacts of the Project, including the impacts of social environment, will be minimal.

24 Appendix 1

REFERENCES A. Documents and Reports

1. ADB. 2003. Environmental Assessment Guidelines. Manila. 2. ADB. 2003. Environmental Considerations in ADB Operations, Operations

Manual. Section F1. Manila 3. Feasibility Study reports of the Project 4. EIA reports for all project components 5. Hai River Basin Pollution Prevention and Control Plan 6. Tenth Five-Year Environment Protection Plan for Shandong Hai River Basin

Environmental Protection 7. Information concerning EIA and project management of the Project

B. Laws and Regulations

1. Environmental Protection Law of the PRC 2. Environmental Impact Assessment Act of the PRC 3. Water Pollution Prevention Act of the PRC 4. Solid Waste Pollution Control Act of the PRC 5. Environmental Noise Pollution Control Act of the PRC 6. Air Pollution Prevention Act of the PRC 7. Cleaner Production Promotion Law of the PRC 8. Land Management Act of the PRC 9. Environmental Protection Management Regulations for Construction Projects

C. Standards

1. Environmental Impact Assessment Technical Guideline (HJ/T2.1-2.3-93) 2. Environmental Quality Standards for Surface Water of the PRC (GH3838-

2002) 3. Quality Standards for Groundwater of the PRC (GB-T 14848-9) 4. Integrated Wastewater Discharge Standard (GB8978-1996) 5. Discharge Standard of Pollutants for Municipal WWTP (GB18918-2002) 6. Municipal Sewer Discharge Standard (CJ3082-1999) 7. Water Quality Standards for Agricultural Irrigation (GB5084-92) 8. Water Quality Standards for Fisheries (GB11607-89) 9. Standard of Environmental Noise of Urban Area (GB3096-93) 10. Integrated Emission Standard of Air Pollutants (GB16297-1996) 11. Ambient Air Quality Standard of the PRC (GB3095-1996) 12. Emission Standard for Odor Pollutants of the PRC (GB14554-93) 13. The Control Standards of Pollutants in Sludge for Agricultural Use of the PRC

(GB4284-84) 14. Discharge Standards of Water Pollutants for Paper Industry (GB3544-2001) 15. Environmental Quality Standard for Soils (GB15618-1995) 16. Standard for Pollution Control on the Municipal Solid Waste Incineration

(GB18485-2001) 17. Standard for Pollution Control on the Landfill Site for Municipal Waste

(GB16889-1997) 18. Environmental Monitoring Technical Standard of Landfill Site for Municipal

Waste (CJ-T 3037-1995) 19. Control Standards for Urban Wastes for Agricultural Use (GB 8172-87) 20. Technical Standard for Municipal Waste Landfill Site of Urban Area (CJ J17-

2004)

Appendix 2 25

ENVIRONMENT MANAGEMENT PLAN A. Introduction

1. The environmental management plan (EMP) covers all phases of the Project from preconstruction through commissioning and operation, and aims to ensure the monitoring of environmental impacts and the implementation of environmental mitigation measures. Environmental monitoring programs will be carried out and the results used to evaluate the (i) extent and severity of actual environmental impacts against the predicted impacts, (ii) performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts, and (iv) overall effectiveness of the project EMP. Environmental protection measures will (i) mitigate environmental impacts; (ii) ensure compliance with environmental regulations; (iii) provide compensation for lost environmental resources, and reduce or eliminate adverse impacts; and (iv) enhance environmental resources. Environmental strengthening and training will strengthen the EMP capacity of the implementing agencies (IAs) and technical skills required to conduct environmental monitoring. The feedback mechanism will evaluate effectiveness of mitigation measures and monitoring, and ensure timely and adequate responses to address any unintended impacts. B. Summary of Potential Impacts and Mitigation Measures 2. Potential impacts of the nine proposed components during the construction and operation phases will vary and are summarized in Table A2.1. All mitigation measures will be implemented to minimize the potential adverse impacts. These measures will be incorporated into construction contracts and management plans, and be implemented by the contractors or IAs under supervision of the Shandong project management office (SPMO). Effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether to continue or make improvements. Improvement measures need to be confirmed through stipulated environmental management procedures. Costs of the EMP mitigation measures will be included in the project contracts and agreed upon with municipal and private budgets during operation. 3. Resettlement plans were prepared to ensure proper resettlement of the people affected and that their quality of life would not deteriorate. Details of required actions are given in the resettlement plans.

26 Appendix 2

Table A2.1: Summary of Potential Impacts and Mitigation Measures Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects

Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Site selection

Two sites were evaluated considering cost, impact on environment, land acquisition, traffic, management, etc.

Site selection

Three sites were evaluated considering cost, impact on environment, land acquisition, traffic, management, etc.

Site selection

Site located at the paper mill considering impact on environment, investment, land availability, process, and layout

Site

Budget (CNY) 25,000 Budget (CNY) 3,000 Budget (CNY) 6,000 34,000

Process selection

Two or three alternatives were evaluated considering wastewater characteristics, impact on environment, cost, sludge disposal, etc.

Process selection

Three treatment process alternatives were evaluated considering investment, impact on environment, secondary pollution, land protection, operation and maintenance, treatment costs, etc.

Process selection

One alternative was evaluated considering the paper mill technology, improvement and treatment efficiency requirements set by state and Shandong provincial governments

Treatment process

Budget (CNY) 20,000 Budget (CNY) 1,500 Budget (CNY) 5,500 27,000

Prior to Construction

Others Sewer alignment alternatives

Sewer network alternatives were evaluated considering topographic and geologic conditions; construction method and cost; related resettlement; crossing of the main road, railways, other public utilities; considered impact on environment and

Appendix 2 27

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

construction; easy operation and maintenance for the planned WWTPs

Budget (CNY) 80,000 Budget (CNY) 0 Budget (CNY) 0 80,000

Effluent disposal and reuse

Except Shanghe, treated wastewater will be used for industrial purposes. For unreused wastewater, limited irrigation can be applied; required nutrient removal might be required

Leachate treatment alternatives

Considering land and environmental requirements and costs, effluent from leachate treatment will be tanked and hauled to WWTPs

Effluent disposal and reuse

Part of the treated wastewater will be reused within the existing plants; unreused wastewater can be used for limited irrigation and nutrient removal might be required

Budget (CNY) 27,000 Budget (CNY) 7,500 Budget (CNY) 7,500 42,000

Wastewater from construction activities and workers

Provide site enclosures to runoff; designated storm drains, temporary storage tanks

Wastewater from construction activities and workers

Provide site enclosures to runoff; designated storm drains, temporary storage tanks

Wastewater from construction activities and workers

Provide site enclosures to runoff; designated storm drains, temporary storage tanks

During Construction

Water

Budget (CNY) 31,000 Budget (CNY) 600 Budget (CNY) 250,000 281,600

28 Appendix 2

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Rainy season

Construct temporary storage tank to contain surface runoff; immediate revegetation to minimize soil erosion

Rainy season

Construct temporary storage tank to contain surface runoff; immediate revegetation to minimize soil erosion

Rainy season

Construct temporary storage tank to contain surface runoff; immediate revegetation to minimize soil erosion

Budget (CNY) 21,000 Budget (CNY) 900 Budget (CNY) 320,000 341,900

Groundwater Provide leak-prevention measures to structures

Groundwater Install leak prevention and collect leachate Groundwater

Provide leak-prevention measures to structures

Budget (CNY) 19,000 Budget (CNY) 1,500 Budget (CNY) 120,000 140,500

Fust from construction and transportation

Provide for site enclosure; watering dusty roads; covering or enclosing transportation; improving routing and setting speed limit; covering construction materials; reducing construction material storage time.

Dust from construction and transportation

Provide for site enclosure; watering dusty roads; covering or enclosing transportation; improving routing and setting speed limit; covering construction materials; reducing construction material storage time.

Dust from construction and transportation

Provide for site enclosure; watering dusty roads; covering or enclosing transportation; improving routing and setting speed limit; covering construction materials; reducing construction material storage time.

Budget (CNY) 225,000 Budget (CNY) 3,000 Budget (CNY) 100,000 328,000

Air

Emissions from the vehicle and construction machinery

Plan periodic maintenance to ensure vehicles and machinery emissions meet all required standards.

Emissions from the vehicle and construction machinery

Plan periodic maintenance to ensure vehicles and machinery emissions meet all required standards

Emissions from the vehicle and construction machinery

Plan periodic maintenance to ensure vehicle and machinery emissions meet all required standards

Appendix 2 29

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Budget (CNY) 30,800 Budget (CNY) 1,500 Budget (CNY) 100,000 132,300

Noise from the vehicle and construction machinery

Do not permit nighttime heavy machinery construction activity (2200–0600 hours) close to residential areas, or heavy construction machinery within 50 m of residential areas. Ensure periodic maintenance and operation to minimize potential noise impact; install noise barrier if necessary; provide adequate route for large trucks to keep away from residential areas

Noise from the vehicle and construction machinery

Do not permit nighttime heavy machinery construction activity (2200–0600 hours) close to residential areas or heavy construction machinery within 50 m or residential areas. Ensure periodic maintenance and operation to minimize potential noise impact; install noise barrier if necessary; provide adequate route for large trucks to keep away from residential areas.

Noise from the vehicle and construction machinery

Do not permit nighttime heavy machinery construction activity (2200–0600 hours) close to residential areas or heavy construction machinery within 50 m of residential areas. Ensure periodic maintenance and operation to minimize potential noise impact; install noise barrier if necessary; provide adequate route for large trucks to keep away from residential areas.

Noise

Budget (CNY) 30,000 Budget (CNY) 1,500 Budget (CNY) 250,000 281,500

Solid wastes

Solid wastes from the construction site

Dispose to landfill with enclosed transportation.

Solid wastes from the construction site

Temporarily store at the landfill site before construction is completed, then after project completion dispose at the landfill, which should be covered and provided with leak prevention.

Solid wastes from the construction site

Dispose to landfill in a timely manner using enclosed transportation.

30 Appendix 2

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Budget (CNY) 70,000 Budget (CNY) 1,200 Budget (CNY) 605,000 676,200

Excess soil from the initial construction

Use excess soil tested for safe disposal for landscaping; if not, then dispose to landfill; construct berm around soil temporary storage areas; rehabilitate all previously used sites to original conditions; move excess soil to landfill for final disposal; enclose transportation vehicle to prevent leaks and haul during nighttime to minimize impact on traffic.

Excess soil from the initial construction

Use excess soil tested for safe disposal for backfilling within the landfill; construct berm around soil temporary storage areas; store excess soil temporarily within the unused cell areas; rehabilitate all previously used sites to original conditions; dispose of excess soil at landfill only.

Excess soil from the initial construction

Use excess soil tested for safe disposal for landscaping; if not, then dispose to landfill; construct berm around soil temporary storage areas; rehabilitate all previously used sites to original conditions; move excess soil to landfill for final disposal; enclose transportation vehicle to prevent leaks and haul during nighttime to minimize impact on traffic.

Budget (CNY) 90,000 Budget (CNY) 1,800 Budget (CNY) 55,000 146,800

Vegetation and plants removed due to construction.

Replant after construction.

Vegetation and plants removed due to construction.

Replant after construction.

Vegetation and plants removed due to construction.

Replant after construction.

Land

Budget (CNY) 330,000 Budget (CNY) 1,500 Budget (CNY) 105,000 436,500

Appendix 2 31

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Impact on farmland due to soil erosion, wastewater, or dust from construction.

Cover dusty areas; rehabilitate farmland after sewer construction to minimize any negative impact to the crops; construct berm, fence, or designated drains; minimize soil erosion; water or enclose the construction site.

Impact to farm land due to soil erosion, wastewater or dust by construction.

Cover dusty areas to minimize impact to the crops; construct berm or fence or designated drains to minimize surface runoff and erosion and floating garbage; cover or water construction site; preventing fence surrounding landfill to prevent garbage dispersing.

Impact on farmland due to soil erosion, wastewater or dust from construction.

Cover dusty areas; rehabilitate farmland after sewer construction to minimize any negative impact to the crops; construct berm, fence, or designated drains; minimize soil erosion; water or enclose the construction site.

Budget (CNY) 45,000 Budget (CNY) 1,500 Budget (CNY) 302,000 348,500

Plants are to be removed or relocated along the sewer alignment.

Replant after construction.

Plants are to be removed or relocated for WWTP construction.

Replant after construction.

Plants are to be removed or relocated along the sewer alignment.

Replant after construction.

Budget (CNY) 280,000 Budget (CNY) 1,200 Budget (CNY) 202,000 483,200

Soil erosion Construct temporary berm, fence, and designated drains.

Soil erosion Construct temporary berm, fence, and designated drains.

Soil erosion Construct temporary berm, fence, and designated drains.

Ecology

Budget (CNY) 95,000 Budget (CNY) 1,200 Budget (CNY) 210,000 306,200

32 Appendix 2

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Environmental impact due to land acquisition and resettlement

Follow PRC laws and ADB policy requirements; prepare RAP; return temporary land to the original users.

Environmental impact due to land acquisition and resettlement

Follow PRC laws and ADB policy requirements; prepare RAP; return temporary land to the original users.

/ /

Budget (CNY) 50,000 Budget (CNY) 3,000 Budget (CNY) 0 53,000

Traffic jam or block

Build temporary road; improve transportation routing; minimize traffic condition to regular hours; divert traffic flow during peak hours; establish temporary traffic arrangement

Traffic jam or block

Build temporary road; improve transportation routing; minimize traffic condition to regular hours; divert traffic flow during peak hours; establish temporary traffic arrangement.

Traffic jam or block

Build temporary road; improve transportation routing; minimize traffic condition to regular hours; divert traffic flow during peak hours; establish temporary traffic arrangement.

Budget (CNY) 305,000 Budget (CNY) 600 Budget (CNY) 1,700,000 2,005,600

Impact on civilian or commercial activities due to sewer construction

Build temporary road; improve transportation routing; minimize traffic condition to regular hours; divert traffic flow during peak hours; rehabilitate the road.

Impact on civilian or commercial activities due to construction.

Build temporary road; improve transportation routing; minimize traffic condition to regular hours; divert traffic flow during peak hours; rehabilitate the road.

Impact on civilian or commercial activities due to construction

Build temporary road; improve transportation routing; minimize traffic condition to regular hours; divert traffic flow during peak hours; rehabilitate the road.

Social

Budget (CNY) 145,000 Budget (CNY) 600 Budget (CNY) 110,000 255,600

Appendix 2 33

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Sewer construction crossing riverbed and railway

Coordinate with the relevant departments; develop emergency response plan; and use appropriate construction methods.

/ /

Construction crossing riverbed and railway

Coordinate with the relevant departments; develop emergency response plan; and use appropriate construction methods.

Budget (CNY) 50,000 Budget (CNY) 0 Budget (CNY) 202,000 252,000

Impact on existing utilities due to sewer construction

Plan construction to minimize impact on public utilities; develop emergency response plan.

Impact on existing utilities due to construction

Plan construction to minimize impact to public utilities; develop emergency response plan.

Impact on existing utilities due to construction

Plan construction to minimize impact on public utilities; develop emergency response plan.

Environmental risk

Budget (CNY) 50,000 Budget (CNY) 1,200 Budget (CNY) 58,000 109,200

WWTP malfunctioning, sewerage overflow; industrial illegal discharges

Provide standby equipment; dual power supply for pumping stations; adequate supervision and management; develop emergency response plan; develop industrial pollution control and management plans.

/ /

WWTP malfunctioning; wastewater overflow

Provide standby equipment; dual power supply for pumping stations; adequate supervision and management; develop emergency response plan.

Budget (CNY) 65,000 Budget (CNY) 0 Budget (CNY) 12,000 77,000

Effluent impact to water receiving bodies

WWTP operation must comply with the discharge requirements.

/ /

Effluent impact to water receiving bodies

WWTP operation must comply with the discharge requirements.

During Operation

Water

Budget (CNY) 50,000 Budget (CNY) 0 Budget (CNY) 13,000 63,000

34 Appendix 2

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Groundwater

Install monitoring wells around the WWTP to enhance required monitoring activities.

Groundwater

Install monitoring wells around the WWTP to enhance required monitoring activities.

Groundwater

Install monitoring wells around the WWTP (for Changyuang paper mill) to enhance required monitoring activities.

Budget (CNY) 65,000 Budget (CNY) 3,000 Budget (CNY) 20,000 88,000

/ / Solid wastes dispersion

Install berm and cover device to prevent solid waste dispersion during downwind and storm events; ensure material is enclosed during transportation; develop leachate leaking emergency response plan; and install gas collection pipes for methane capture.

/ /

Air

Budget (CNY) 0 Budget (CNY) 15,000 Budget (CNY) 0 15,000

Appendix 2 35

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Odor

Provide buffer for the facilities and around the WWTP, potential odor source enclosure, effective scrubbers, and solid treatment facility enclosure; and avoid storage of dewatered sludge. Ensure enclosed transportation and haul to landfill for final disposal; install certain width of the buffering zone and plant within the WWTP; ensure adequate WWTP facility layout to minimize odor to potential receptors.

Odor

Provide buffer for the facilities and around the WWTP, potential odor source enclosure, and effective scrubbers; install certain width of the buffering zone and plant within the WWTP; ensure adequate WWTP facility layout to minimize odor to potential receptors.

Odor

Provide buffer for the facilities and around the WWTP, potential odor source enclosure, effective scrubbers, and solid treatment facility enclosure; avoid storage of dewatered sludge; provide enclosed transportation and haul to landfill for final disposal; install certain width of the buffering zone and plant within the WWTP; adequate WWTP facility layout to minimize odor to potential receptors.

Budget (CNY) 65,000 Budget (CNY) 15,000 Budget (CNY) 57,000 137,000

Noise from the pump and equipment operation

Select low noise equipment; install high noise equipment indoors; construct pumping stations in semiburied structures; use noise barrier and green buffer.

Noise from equipment operation

Select low noise equipment; install high noise equipment indoors; construct pumping stations in semiburied structures; use noise barrier and green buffer.

Noise from the pump and equipment operation

Select low noise equipment; install high noise equipment indoors; construct pumping stations insemiburied structures; use noise barrier and green buffer.

Noise

Budget (CNY) 675,000 Budget (CNY) 6,000 Budget (CNY) 603,000 1,284,000

36 Appendix 2

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Small amount of sediments from the river dredging

Conduct soil quality testing to determine agricultural reuse or landfill disposal.

Small amount of sediments from the river dredging

Conduct soil quality testing to determine agricultural reuse or landfill disposal.

Small amount of sediments from the river dredging

Conduct soil quality testing to determine agricultural reuse or landfill disposal.

Budget (CNY) 85,000 Budget (CNY) 6,000 Budget (CNY) 12,000 103,000

Sludge Provide timely hauling to landfill in enclosure transportation.

/ / Industrial residuals and sludge

Provide timely hauling to landfill in enclosure transportation.

Solid wastes

Budget (CNY) 381,000 Budget (CNY) 0 Budget (CNY) 51,000 432,000

Less runoff due to wastewater reuse

Conduct analysis to determine potential impacts.

Landfill backfill materials

Select appropriate location for backfill material excavation.

Less runoff due to wastewater reuse

Conduct analysis to determine potential impacts.

Budget (CNY) 23,000 Budget (CNY) 30,000 Budget (CNY) 1,000 54,000

Plantation impact

Ensure no less than 30% space for landscaping within the WWTP.

Plantation impact

Ensure adequate plantation for the surrounding berms.

Plantation impact

Ensure no less than 30% space for landscaping within the WWTP.

Ecology

Budget (CNY) 490,000 Budget (CNY) 9,000 Budget (CNY) 203,000 702,000

Appendix 2 37

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

WWTP and sewer networks construction are not in close coordination to cause potential operation problem.

Ensure WWTP and sewer networks construction are closely coordination

Abnormal operation and protest resolution

Ensure adequate supervision and management; enhance operation monitoring; implement emergency response and traffic management plans.

Paper mill malfunction to cause abnormal discharge

Ensure adequate supervision and management; enhance operation monitoring; develop emergency response plan.

Budget (CNY) 171,000 Budget (CNY) 1,500 Budget (CNY) 10,500 183,000

Corrosive and foul gases in sewers

Install inspection and control devices in potential hazardous areas; provide adequate space within the service holes to monitor or track the hazardous sources; provide better ventilation to minimize hazard; prepare emergency response plans between government agencies.

Leachate leaking

Install berm and collection device; enhance operation monitoring; and emergency response plan.

Wastewater pipelines leaking or bursting

Provide adequate supervision and management; enhance operation monitoring; prepare emergency response plan.

Budget (CNY) 80,000 Budget (CNY) 3,000 Budget (CNY) 43,000 126,000

Environ-mental risk

WWTP chlorine gas for disinfection leak incident

Install alarm device and adsorption facility; control storage volume; provide buffering zone; equip personal protection gear; develop emergency

Solid wastes dispersion during rainy season

Install berm and cover; strict environmental management and pollution control.

38 Appendix 2

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

response plan.

Budget (CNY) 30,000 Budget (CNY) 3,000 Budget (CNY) 0 33,000

Sewers leaking or bursting

Provide adequate supervision and management; enhance operation monitoring; provide an emergency response plan.

Landfill enclosure

Develop enclosure program to ensure landfill safety well LFG collection and reuse, avoid leachate potential hazard to provide landfill landscaping and continue use; develop 3-year monitoring program and requirements.

Sewers leaking or bursting

Provide adequate supervision and management; enhance operation monitoring; provide an emergency response plan.

Budget (CNY) 43,000 Budget (CNY) 9,000 Budget (CNY) 101,000 153,000

Supervision and monitoring

IAs monitor sewer water quality at least twice a year.

Supervision and monitoring

IAs monitor groundwater quality at least once a year.

Supervision and monitoring

IAs monitor inlet effluent, at least twice a year.

Budget (CNY) 49,000 Budget (CNY) 3,000 Budget (CNY) 11,000 63,000

Treatment facility incident

Regularly maintain environment facilities; emergency response plan.

Treatment facility incident

Regularly maintain environment facilities; emergency response plan.

Treatment facility incident

Regularly maintain environment facilities; emergency response plan.

Budget (CNY) 45,000 Budget (CNY) 6,000 Budget (CNY) 12,000 63,000

Appendix 2 39

Municipal Wastewater Subprojects Solid Waste Subprojects Paper Mill Subprojects Project Phases

Impact Factors Environmental

Impact Mitigation Measures Environmental Impact Mitigation Measures Environmenta

l Impact Mitigation Measures Subtotal (CNY)

Insufficient environmental management capacity

Conduct training for environmental management; develop facility and staff setup.

Insufficient environmental management capacity

Conduct training for environmental management; develop facility and staff setup.

Insufficient environmental management capacity

Conduct training for environmental management; develop facility and staff setup

Budget (CNY) 1,520,000 Budget (CNY) 6,000 Budget (CNY) 22,000 1,548,000

Total (CNY): 11,885,600

ADB = Asian Development Bank, CNY = yuan, IA = implementing agency, LFG = landfill gas, PRC = People’s Republic of China, WWTP = wastewater treatment plant Notes: 1. Budgeted costs for the mitigation measures will be covered by the contractors during construction and relevant IAs and government agencies will include specified budgets

for mitigation in their operational costs. 2. Responsible agencies─ implementation: IAs; supervisory: local EPB and PMO; review; SPEPB, SPMO, and ADB. 3. “/” indicates no mitigation measures applicable to the corresponding impacts since such impacts are not relevant to the component. Source(s): Feasibility Study Reports, Subprojects’ Individual Environmental Impact Assessment Reports

40 Appendix 2

C. Environmental Monitoring

4. The IAs have developed a detailed environmental monitoring program (Table A2.2) in line with the requirements of environmental monitoring departments (EMDs) of Shandong Provincial Environmental Protection Bureau (SPEPB) and related local governments. This program considers the scope of monitoring, environmental media, monitoring parameters and frequency, data processing, and quality control requirements. The monitoring will follow the methodology provided in the national standard methods for monitoring pollutants. Other associated standards are national environmental quality standards and pollutant discharge/emission standards. In addition to the monitoring frequency and parameters required by the standards, a higher frequency will be included for the two paper mills and additional parameters will be added to expand the scope and coverage of monitoring until landfill closure. 5. The environmental monitoring including the environmental benefits monitoring will be incorporated in the project performance management system indicators for the Project. The IAs will be responsible for analyzing and consolidating the data through their management information system. The project performance management system will be designed to allow adequate flexibility to adopt remedial action regarding project design, schedules, activities, and development impacts. At the beginning of the Project, the Shandong Project Management Office (SPMO), IAs, and consultants will develop comprehensive project performance management system procedures to systematically generate data on inputs and outputs of the project components and agree on environmental and related social economic indicators to be used to measure project impacts. SPMO and the IAs will refine the project performance management system framework, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 6 months after loan effectiveness. 6. The monitoring results will be used to evaluate the (i) extent and severity of environmental impacts compared with the predicted impacts, (ii) performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts, and (iv) overall effectiveness of the project EMP. Effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. Modification of measures required by the EMP will be performed, if necessary. Different levels of EPBs and SPMO play critical roles in this feedback and adjustment mechanism as shown in Figure 1 of Attachment 2. 7. During construction and operation, the EMDs of local EPBs will be responsible for environmental compliance monitoring in the project area. When complaints are received from the public, monitoring staff will conduct immediate inspections. Because most county EMDs do not have enough qualified staff, monitoring equipment, and technical capability, the EMDs of Shandong province or Liaocheng, Dezhou, Jinan, and Binzhou municipalities will assist the county EPBs. The provincial and municipal EMDs have qualified staff with monitoring equipment and technical capability for monitoring the aquatic, air, and physical environment (noise and vibration), sediment, soil and ecology (including solid waste), and traffic conditions. The Department of Laboratories is appropriately certified, assuring the accuracy of the analytical results and their legal standing. 8. Environmental monitoring costs included in Table A2.2 are to be included in the project contracts and counterpart budgets. Before implementing the monitoring plan, responsible agencies will present a further detailed breakdown of the estimated budget. During project implementation, the costs can be adjusted based on actual requirements.

41 Appendix 2

Table A2.2: Environmental Monitoring Program Budget

(CNY ‘0,000, annual) Budget

(CNY ‘0,000 annual) Item Construction

Phase 4 MWMs 3

SWMs 2 Paper

Mill WMs

Total (CNY ‘0,000

annual)

Operation Phase

4 MWMs 3 SWMs 2 Paper Mill WMs

Total, (CNY ‘0,000

annual)

Air MonitoringLocations Pug mills, dusty

roads, construction sites

WWTP, areas surrounding landfill plant

Parameters TSP, pug mill emissions, PM10

odor; TSP, PM10 (landfill plant)

Frequency 6 times a year (bi-monthly)

4 times a year (quarterly)

Length of monitoring (each time/location)

1–3 days 5 days

Sampling hours 1000–1500 hours

15.0 0.9 11.0 26.9

0700–1100 hours and 1400–1700

3.8 1.5 10.0 15.3

Noise Monitoring Locations Sensitive areas within

150 m from construction site and buildings within 50 m from piling sites

WWTP, outside areas within 2–5 m from landfill plant

Parameters Noise Noise Frequency Twice a year Twice a year Length of monitoring

2 days 3 days

Sampling hours Twice a day

5.9 4.5 3.0 13.4

1000–1100 hours

1.4 1.2 2.0 4.6

(i) Water Quality Monitoring Locations Construction site 9.9 0.3 18.0 28.2 WWTP and

paper mill outfalls; WWTP sewers; and groundwater

11.3 1.5 22.0 34.8

Appendix 2 42

Budget (CNY ‘0,000, annual)

Budget (CNY ‘0,000 annual)

Item Construction Phase

4 MWMs 3 SWMs

2 Paper Mill WMs

Total (CNY ‘0,000

annual)

Operation Phase

4 MWMs 3 SWMs 2 Paper Mill WMs

Total, (CNY ‘0,000

annual)

Parameters BOD, COD, SS, PH, heavy metals

BOD, COD, SS, heavy metals, pH, color, turbidity, dissoluble organic substances, total P, total N

Frequency 12 times a year (monthly) heavy metals yearly

Fixed location and section; once bimonthly for BOD, COD, SS, pH, color, total P, total N, and once every 4–6 months for others; twice a year for sewer water quality

Soil Monitoring Locations Areas surrounding

landfill plant Areas surrounding landfill

Parameters Organic toxic, heavy metals, etc.

toxic organics, heavy metals, etc.

Frequency 1–6 times a year

3.6 0.3 10.0 13.9

Once a year (one month after rainy season)

0.6 0.6 10.0 11.2

BOD = biochemical oxygen demand, CNY = yuan, COD = chemical oxygen demand, N = nitrogen, P = phosphorus, PH = measure of acidity or alkalinity, PM10 = particulate matter 10 microns, SS = suspended solid, TSP = total suspended particles, WWTP = wastewater treatment plant Source(s): Subprojects’ Individual Environmental Impact Assessment Reports

Appendix 2 43

D. Public Consultation

1. Public Consultation during Project Preparation

9. Public participation was conducted as an ongoing element in the development of the Project. These activities were carried out in accordance with national guidelines, environmental impact assessment technical guidelines, and Asian Development Bank (ADB) Environment Policy requirements.

2. Future Public Consultation Plan 10. Plans for public involvement during the design, construction, and operation phases have been developed based on the two public consultation meetings conducted in 2004 and 2005 during the project preparation (Table A2.3). These plans include public participation in (i) monitoring impacts and mitigation measures during construction and operation, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the Project is completed. These plans will include several types of public involvement, e.g., site visits, workshops, investigation on specific issues, interviews, and press conference. 11. Public participation plans are part of the project implementation and management plan. The IAs are responsible for public participation during project implementation. The IAs will also establish project resettlement units for supervising implementation, continuing public consultation, monitoring progress, and responding to grievances. For the paper mill components, the construction is conducted within the mill, thus requiring fewer types and lower frequency of public involvement. Costs for public participation activities during project construction are included in the project funding. The costs are estimated as CNY3,000 for each expert workshop, CNY20,000 for each public investigation on a particular issue, CNY10,000 for each resettlement survey, CNY5,000 for each public workshop, and CNY6,000 for each press conference. Costs for public participation activities during operation will be covered by the IAs. In addition, the established feedback mechanisms (Figure A2.1) will ensure timely feedback and measures to address any concerns raised by the project affected communities.

44 Appendix 2

Table A2.3: Public Participation Plan

Organizer Approach Times Subject Attendees Project Preparation

Public consultation

At least once Residents within construction area

IAs, EIA Preparation Agencies

Expert workshop At least once

Project priority, effects, attitudes to the Project, and suggestions Specialists from various

sectors PPTA Team Public workshop Twice Comments and

recommendations of the public

Representatives of residents and social sectors

Construction Phase Public consultation and site visits

At least once a year

Adjustment of mitigation measures if necessary, construction impacts, comments and suggestions

Residents within construction area

Survey on resettlement

At least twice

Comments and suggestions People affected by resettlement and relocation

Expert workshop or press conference

At least once Comments and suggestions on mitigation measures, public opinions

Experts of various sectors, media

IAs

Public workshop At least once/year

Adjustment of mitigation measures if necessary, construction impacts, comments and suggestions

Representatives of residents and social sectors

Operational Phase Public consultation and site visits

At least once Effects of mitigation measures, impacts of operation, comments and suggestions

Residents within construction area

IAs

Public satisfaction survey

At least once Comments and suggestions on the solid waste collection and treatment

Project beneficiaries

EIA = Environmental Impact Assessment, IA = implementing agency, PPTA = Project Preparatory Technical Assistance Source(s): Subprojects’ Individual Environmental Impact Assessment Reports E. Responsibilities and Authorities

1. Environmental Responsibilities and Institutional Requirements 12. The EMP will ensure effective implementation of various identified mitigation measures. During project preparation and implementation, various organizations with different environmental management responsibilities—SPEPB, SPMO, municipal and county EPBs, the nine component IAs, design institutes, and contractors—will be involved in the EMP. SPMO and the IAs will each nominate dedicated, trained, and qualified environment specialists to undertake environmental management activities and ensure effective EMP implementation. Consultants will assist SPMO and the IAs in preparing semiannual EMP progress reports and carrying out training programs. Table A2.4 shows the environmental responsibilities in different phases of the Project.

Appendix 2 45

Table A2.4: Environmental Responsibilities

Responsible Agencies Environmental Responsibilities

Preparation SPEPB, Shandong Project Management Office, municipal and county EPBs

Review and approve EIA, including the environmental management plan.

Design Design institutes Incorporate mitigation measures in engineering designs and contracts.

SPEPB, municipal and ounty EPBs, PMO, IAs

Review and approve environmental measures.

Tendering Contractors Incorporate EMP clauses in the bids. Project leading group Supervise the overall project construction activities

including review of the semiannual EMP reports. Shandong Project Management Office (SPMO)

Coordinate and supervise EMP implementation including (i) develop and conduct environmental training, and (ii) prepare and submit semiannual EMP reports to the project leading group and Asian Development Bank.

Local project management offices

Supervise EMP implementation of each subproject.

IAs, Contractors Implement the EMP including preparing and submitting monthly monitoring reports to SPMO through city/county project leading groups.

Construction

County EPBs Conduct environmental compliance monitoring and periodic environmental inspection.

Implementing agencies Conduct internal environmental management and monitoring.

Operation

Municipal and county EPBs, Conduct environmental monitoring and periodic environmental inspections.

EIA = Environmental Impact Assessment, EMP = Environmental Management Plan, EPB = Environmental Protection Bureau, IA = implementing agency, PMO – Project Management Office, SPEPB = Shandong Province Environmental Protection Bureau Source(s): Subprojects’ Individual Environmental Impact Assessment Reports 13. In accordance with the EMP, the IAs will establish an environmental management office within the project management departments; these will generally require two employees. During the Project, this office will be responsible for (i) implementing the EMP and developing further implementation details; (ii) supervising implementation of mitigation measures during construction; (iii) implementing training programs; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal routine environmental monitoring; and (vi) reporting performance of the EMP to the responsible agencies. 14. Each local government including the EPB will ensure that local regulations for management of the wastewater/drainage systems are reviewed annually to define clear responsibilities between agencies involved and appropriate penalties for noncompliance, and effectiveness of such regulations is reviewed on a biannual basis and adequately modified in accordance with applicable legal procedures. 15. Environmental project management consultants will advise SPMO and the IAs on all aspects of environmental management and monitoring for the project components. The consultants will (i) review project environmental practices and procedures, (ii) provide guidance in environmental standard setting and help with implementation procedures, (iii) investigate and make recommendations on other environmental issues, (iv) undertake a general review of the

46 Appendix 2

compilation of environmental compliance programs, (v) review procedures for the control of discharges of industrial waste and recommend improvements, (vi) review policies and procedures for sewer connections programs, and (vii) develop a comprehensive program for local government to coordinate the future environmental management with the private sector component.

2. Institutional Strengthening and Training 16. Construction contractors and facility operators will be responsible for actual implementation of mitigation measures during construction and operation, respectively. Environment specialists of local EPB, SPMO, and IAs will receive training in environmental management, monitoring and supervision, mitigation planning, emergency response, environmental regulations, and other environmental management techniques. Funding of this training will be included in the project budget under the consultant services and in the operation and maintenance budgets within each IA during the operational phase.

Table A2.5: Institutional Strengthening and Training Activity

Agency/ Attendees

Description

Timing/Cost

A. Strengthening Activities

Agencies Strengthening Plan Timing

1. Capacity Building IAs, SPMO Institutional organization; development of responsibilities for each position

During project preparation and implementation

2. Monitoring IAs, SPMO Procurement of related monitoring instruments and equipment

During project preparation and implementation

B. Training Attendees Contents Period

(days) Cost

(CNY/person/day) 1. EMP

Implementation and Adjustment, Settlement of Disputes

IAs, municipal and county PMOs and EPBs

Development and adjustment of EMP, emergency response, environmental laws and regulations, and environmental management

5–7 200

2. Environmental Processes

IAs, municipal and county PMOs and EPBs

Engineering technologies; pollution control, equipment selection and procurement

8–10 240

3. Water Quality and Quantity Monitoring

IAs, municipal and county PMOs and EPBs

Monitoring methods, data collection and processing, and reporting system

8–10 350

4. Environmental Policies and Plans

IAs, municipal and county EPBs

Environmental laws and regulations, environmental management, and emergency response

3–5 200

CNY = yuan, EMP = Environmental Management Plan, EPB = Environmental Protection Bureau, IA = implementing agency, PMO = Project Management Office, SPMO = Shandong project management office Source(s): Subprojects’ Individual Environmental Impact Assessment Reports

Appendix 2 47

F. Reporting and Supervision 17. Results from the environmental monitoring during construction and operation will be submitted by the contractors and operators to the local EPB and PMO, and provided to SPMO, on a monthly basis. In addition, contractors and operations will submit (i) semiannual progress reports on project implementation, (ii) annual reports, and (iii) a project completion report no later than 3 months after project completion. The EMP progress report will include information regarding project implementation, and environmental performance of the contractors, IAs, and project management consultants. Progress reports will emphasize progress made in the areas of water quality improvements, monitoring results, implementation of mitigation measures, environmental compliance, training, and capacity-building progress. In addition to the semiannual EMP reports, SPEPB and/or ADB may request that further actions be taken for environmental mitigation, as they deem necessary, and may determine further mitigation measures for different stages. 18. SPMO will submit to ADB the EMP progress reports and information including project implementation and environmental performance of the contractors, IAs, and environmental project management consultants. These reports will include (i) semiannual progress reports on project EMP implementation, (ii) annual reports, and (iii) a project completion report no later than 3 months after project completion. Progress reports will emphasize progress made in the areas of water quality improvements, monitoring results, implementation of mitigation measures, environmental compliance, training, and capacity-building. G. Work Plan 19. Before construction, the IAs will develop detailed responsibilities and requirements for contractors, cost estimates of mitigation measures, and environmental monitoring for the construction contracts. The IAs will specify responsibilities of their environmental management office and prepare a work schedule. SPMO will inspect and oversee these elements. 20. Before operation, the IAs will develop detailed work plans for environmental management and monitoring during operation based on the EMP and consistent with the construction stages. These work plans will be submitted to the local EPB and all levels of PMOs for supervision of implementation of these plans. 21. Environmental management responsibilities, requirements, monitoring plans, and other related works will be specified in the tendering documents and management contracts. H. Procurement Plan and Cost Estimates 22. The IAs and design institutes, with the assistance of the consultant, will develop detail plans for procurement of equipment, material, and others for implementing mitigation measures and monitoring plans. These plans will be incorporated into the project contracts. Cost estimates for mitigation measures and monitoring plans are summarized in Table 1. A detailed breakdown of the cost estimates will be prepared by the design institutes and included in the tender documents. Costs for all mitigation measures and environmental monitoring during construction will be included in the contract document and be borne by the contractors. Costs related to operation and maintenance will be borne by the operation agencies/companies. Cost for the environmental project consultant and the training/public awareness center will be borne by the Project.

48 Appendix 2

I. Mechanisms for Feedback and Adjustment 23. The effectiveness of mitigation measures and monitoring plans will be evaluated through the feedback reporting system. The mitigation measures will be adjusted if necessary. SPEPB and SPMO play critical roles in this feedback and adjustment mechanism as shown in Figure 1. 24. Feedback and adjustment will be carried out in two tiers. Contractors and operators will undertake appropriate timely adjustment of the EMP during project implementation and operational of project facilities if necessary. Upon request of EMP modification by the contractors and/or operators, SPEPB, SPMO, and IAs will review the proposals in detail and seek advice of the project implementation consultants. Required corrective measures will then be submitted by the contractors and operators to SPEPB, SPMO, and IAs for final approval. Comments and suggestions from SPEPB and ADB will also be considered by contractors and operators, and appropriate responses and revisions of the EMP will be implemented if necessary.

Appendix 2 49

Figure A.2: Feedback Mechanism During Implementation

ADB = Asian Development Bank, IA = implementing agency, LEPB = local environmental protection bureau, PMO = project management office, SEPB = Shandong environmental protection bureau, SPMO = Shandong project management office. Source(s): Subprojects’ Individual Environmental Impact Assessment Reports

SPMO SEPB

PMOs

IAs (Operators)

Contractors (during construction)

Implementation of mitigation measures and monitoring programs

LEPBs Public Complaints

Reporting

Responses

Complaints/Issues

Consultants

Consultation

ADB