Environmental Management Plan

for

Bayannaoer Water Reclamation and Environment Improvement Project

Hetao Water Affair Group, Ltd. . Bayannaoer City, Inner Mongolia

Oct. 2010

1. General Information

1.1 Project profile

Located in the west of Inner Mongolia autonomous region, a border area province in North China, Bayannaoer City is amongst 105°12′~109°53′E and 40°13′~42°28′N, connecting with Baotu City and Wulanchabu City at the east, abutting on Alxa League at the west, close to the Yellow River at the south opposite to Yike Zhao League, bordering the People's Republic of Mongolia at the north with a boundary line of 368.89 km, covering an area of 65788 km2, with the length of 378 km form east to west and the width of 238 km from south to north, governing the administrative divisions of Linhe District,Wulateqianqi County, Urad Middle Banner, Wulatehouqi County, Hangjin Back Banner, Wuyuan County and Dengkou County, with Hetao Irrigation Area as the core. In 2003, approved by the State Council, this City was upgraded from League into a prefecture-level City in the west of Inner Mongolia autonomous region.

In accordance with the economic development strategy of the autonomous region and Bayannaoer City, in order to make full use of the abundant mineral resources within the city as well as that from Mongolia, it is planned to build up Qingshan Industrial Zone, Jinquan Industrial Zone, Shahai Industrial Zone, Linhe Chemical Industrial Zone and Urad Industry Base and therefore, Bayannaoer City will be the key heavy chemical industry base in Inner Mongolia autonomous region. Accordingly, the water requirements of the perspective long-term plan will be up to about 520 million m3, of which the water requirements of long-term plan by the industrial zones within the mountainous areas serious lack of water resources will be up to 410 million m3. According to the estimate in the Report on the Comprehensive Planning with regard to Water Resources in Bayannaoer City, the gross amount of the water resources along the south foot of Yinshan Mountain within Bayannaoer City in the Yellow River Valley is 587 million m3, of which the gross amount of groundwater is 380 million m3, mainly used as domestic water for urban and rural residents. And industrial water is mainly from the recycled water according to relevant industrial policies of the State.

Covering a water surface of 293km3, with an aggregate storage capacity of 330 million m3, Wuliangsuhai Lake Lake is the largest riverside fresh water lake in the upper and middle reaches of the Yellow River, where, in recent years, the industrial waste water and urban domestic sewage increases year by year and the pollution from the general drainage canal is increasingly severe with the development of industrial production and the increase of urban population in the irrigation area, in particular, the trend of eutrophication in Wuliangsuhai Lake Lake is increasingly severe, resulting in three to five times of the total phosphorus, total nitrogen and chemical oxygen-consumption in the lake beyond National Grade III standard for surface water and the quality of the water being worse than Grade V, which speeds up the biological fill up rate of the lake and the eco-function of the lake is fading away. What’s more, in order to reserve enough storage capacity for floodwater before flood season, it is necessary to open the check gate at the outlet of the general drainage canal to discharge water into the Yellow River, so the polluted water stored in the lake causes severe pollution threat to the Yellow River.

In order to further promote the comprehensive treatment of water environment in Bayannaoer City, to strengthen greatly the infrastructural construction of the urban environment, to reduce the pollution load of Wuliangsuhai Lake Lake, to relieve environmental degradation, to improve the quality of urban water environment and further to promote the process of urbanization and the increase of economy, Bayannaoer municipal party committee and government make decision to cooperate with the World Bank to implement the Project of Comprehensive Treatment of Water Environment in Bayannaoer City by loan from the World Bank. Through a great deal of pre-phase the preliminary investigation and study as well as careful preparations, in August 2006, Bayannaoer municipal party committee and government lodged a formal application with National Development and Reform Commission for the utilization of the loan of 150 million USD from the World Bank (plus domestic counterpart funding of about RMB 2.125 Yuan) to implement the Project of Comprehensive Treatment of Water Environment in Bayannaoer City (hereafter referred to as simply “this Project”), which was approved in July 2009 and listed into the National Projects Alternatives Planning to use loans from World Bank during 2010~2012 fiscal years.

The Project of Comprehensive Treatment of Water Environment in Bayannaoer City (hereafter referred to as simply “this Project”) comprises of nine sub-projects (of which eight involves in takeover of land, civil engineering, equipment procurement and competence construction), mainly including the constructions of the water supply engineering of recycled water of Wulatehouqi County Industrial Zone, the water supply engineering of recycled water of Ganqimaodao customs port Processing Zone, the water supply engineering of recycled water of the third drainage canal, the water supply engineering of recycled water of the seventh drainage canal, the sewage disposal and reuse project of Wulatehouqi County Industrial Zone (Huhe Town), the sewage disposal and reuse project of Ganqimaodao customs port Processing Zone(Delinshan Town), the sewage disposal and reuse project of Wulateqianqi County Industrial Zone(Xianfeng Town), the excavating engineering of grid water channels in Wuliangsuhai Lake Lake area, the project of artificial wetland as the biological transition zone in Wuliangsuhai Lake Lake area. Each sub-project and the distribution location are shown in Table 1.1-1.

Table 1.1-1: Each sub-project and the distribution location

S.N. / Name of sub-project / Location / Evaluated by
1 / The water supply engineering of recycled water of Wulatehouqi County Industrial Zone / Wulatehouqi County / CRAES
2 / the sewage disposal and reuse project of Wulatehouqi County Industrial Zone (Huhe Town) / Wulatehouqi County / CRAES
3 / the water supply engineering of recycled water of the third drainage canal / Hangjin Back Banner / Bayannaoer IES
4 / the water supply engineering of recycled water of the seventh drainage canal / Wuyuan County / CRAES
5 / the water supply engineering of recycled water of Ganqimaodao customs port Processing Zone / Urad Middle Banner / CRAES
6 / the sewage disposal and reuse project of Ganqimaodao customs port Processing Zone(Delinshan Town) / Urad Middle Banner / Bayannaoer IES
7 / the sewage disposal and reuse project of Wulateqianqi County Industrial Zone(Xianfeng Town) / Wulateqianqi County / Bayannaoer IES
8 / the excavating engineering of grid water channels in Wuliangsuhai Lake Lake area / Wulateqianqi County / CRAES
9 / The promotion and demonstration project of artificial wetland as the biological transition zone and the non-point source in Wuliangsuhai Lake Lake area / Wulateqianqi County / CRAES

Whereas the seven sub-projects in respect to the sewage disposal and the water supply engineering of recycled water in the industrial zones belong to the projects within the environment protection category with less impact on the environment, these projects are just required to compile environmental impact statement without compilation of respective environment management plan according to relevant provisions of domestic environment impact evaluation and the requirements of the safety assurance policy by World Bank.

1.2 Objectives of environment management plan

The purpose to formulate EMP means to formulate a set of technically feasible, financially sustainable and exercisable environmental cures against inevitable environment impact to define the measurements and arrangements in respect to the environment mitigation, environment management and institution construction carried out by project contractors, supervisors, operators and environmental management departments during the period of project construction and operation so as to eliminate or offset the adverse impacts caused by this project on the society and the environment to the fullest extent possible and to lower the risk to an acceptable lever. The specific objectives are as follows:

(1)Making clear the environment management obligations of the contractors and operators

Department of Environmental Protection of Inner Mongolia, the environment evaluation units and design units conduct careful on-site review and confirmation of the environment protection targets and to put forward effective measures for environment mitigation, which are included into the engineering design and taken as the contractual responsibility of the contractors and operators of the project construction.

(2)Operating instructions for environment management

The environment monitoring plan during the construction period and operation period proposed in EMP can ensure the effective implantation of the measures for environment mitigation, which, as the environment protection documentation, shall be offered to the construction and supervision units, environmental supervision units and other relevant units during the periods of the construction and operation, to define the responsibilities and roles of relevant functional departments and administrative organizations and to provide the communication channels and methods among different departments.

(3)Guarantee the fund for environment management activity

Preliminary estimate shall be made for the fund used for environment management, environment supervision and competence construction involving in EMP so as to ensure various environment management activities can be carried out, of which the administrative fees include staff salary, administrative expenses and cost of travel.

The function of EMP is to avoid and to control the environment impacts during projects implementation and operation, according to which the measures as required to be carried out with regard to impact mitigation, monitoring and legal regulation model as well as the safeguard measures for such measures should be put forward, and at the same time, EMP is the key ligament to connect with the impact mitigation measures and the alternative measures to be assessed and described in details during environment impact and environment impact assessment. EMP defines the technical connotation, investment estimate, implementation schedule, the functions of government authorities, fund resources and monitoring programs for each environment measure. In order to actualize the reduction targets, all the measures involved in environmental impact assessment report and EMP shall be got the details in place.

1.3 EMP compilation

The Environmental Management Planfor “Implementation of the Project of Comprehensive Treatment of Water Environment in Bayannaoer City by Loan from the World Bank” is comprised of the overall project EMP and the EMP for 2 sub-projects, of which the sub-project EMP shall be compiled by owners of the sub projects as well as their environment impact assessment units, focusing on description with regard to the project budgets and the EMP organization of the projects. The Overall project EMP to be submitted to World Bank for review shall be jointly compiled by World Bank Loans Supporting Project Management Office of Inner Mongolia and CRAES, which shall be worked out strictly according to the laws and regulations in line with environment management at the State and provincial levels. Meanwhile, under the precondition to meet the requirements of the environment assessment in China, special attentions shall be paid to the safety assurance regulations of the World Bank, specifically referring to relevant regulations in Operation Ordinance 4.01.

The information sources for EMP of the overall report are as follows:

(1)Environment assessment for overall project

(2)Summary of environment assessment for overall project

(3)Environment assessment for sub- projects

(4)EMP of environment assessment for sub projects

(5)Immigration allocation schedule of environment assessment for overall project

(6)Feasibility study report for sub- projects

1.4 EMP design

In order to interpret the contents in respect to environment management, environment supervision and environment monitoring in details, the EMP to be complied is the instructive document for environment management during implementation, and its action plan mainly contains the following three parts:

Environment impact and measures for mitigation: significant environment impacts during the periods of project construction and operation, the engineering measures and management measures adopted to prevent or relieve the adverse environment impacts caused by this project.

Environment management and supervision schedule: environment actions adopted to ensure the synchronized implementation between the measures for environment protection and the project construction.

Environment monitoring schedule: the environment monitoring action adopted to eliminate the environment pollution during construction and operation periods and to ensure the safety operation of the project and to improve the environment conditions within the project area.

Competence construction (personnel training) schedule: the knowledge and skills training conducted for the management staff, the environmental supervisors and the environment managers in spare time or in full time to ensure the implementation of EMP.

1.5 Details in compilation technology

Based on the Comprehensive Report on the Environment Assessment of Implementation of the Project of Comprehensive Treatment of Water Environment in Bayannaoer City by Loan from the World Bank and the EMPs of other two sub-projects, this EMP is compiled with applicable supplementary amendments. As an independent document, this EMP contains all the environment management actions to be carried out during the construction and operation periods, offering the guide to action and working framework for this project in respect to measures to mitigate the adverse impacts, the environment supervision, environment management and environment monitoring during the construction and operation periods.

No EMPs has been compiled respectively for the seven sub-projects with regard to the sewage disposal engineering and the water supply engineering of the recycled water, but their fund for environment management has been included into the budget of environment management fund in this EMP.

2.Framework for Policy, Law and Administration

2.1 Documents on Environment Policy and Law

2.1.1 Outline

On the basis of the comprehensive analysis on the type, scale, location and environmental sensibility of the project and the character and size of the potential environmental impact, the main policy, law and standards governing or involved with the environmental assessment of this Project include:

(1) Laws and rules on environmental protection;

(2) Technology policy for pollution prevention;

(3) Plans and layout of social and economic development and environmental protection;

(4) Urban master planning;

(5)Technology guideline for environmental impact assessment;

(6) Environmental quality standard;

(7) Control standards for pollution discharge; and

(8) World Bank safeguard policies.

The aforesaid policies, laws and standards constitute the document framework of policy,law and standards guiding and standardizing the environmental assessment of this Project. Each sub-project is governed by different policy,law and standards because of the different type and character.

Other than aforesaid documents, one of the basis for the environmental assessment of this Project includes the outline of environmental impact assessment (TOR), the feasibility study report,the administrative examination and approval documents of the government authorities and other related documents in which the said policy, law and standards are embodied and applied concretely.

2.1.2 Laws and rules on environmental protection

(1) The Environmental Protection Law of the People's Republic of China, 1989.12.26;

(2) The Environmental Impact Assessment Law of the People's Republic of China, 2002.10.28;

(3) The Water Pollution Prevention and Control Law of the People's Republic of China, 2008.06.01;

(4) The Air Pollution Prevention and Control Law of the People's Republic of China, 2000.04.29;

(5) The Environmental Noise Pollution Prevention and Control Law of the People's Republic of China, 1996.10.29;

(6) The Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, 2004.12.29;

(7) The Water Law of the People's Republic of China, 1988.01.21;

(8) The Law of the People's Republic of China on Water and Soil Conservation, 1991.06.29;

(9) The Law of the People's Republic of China on the Protection of Cultural Relics, 2002.10.28;

(10) The Regulations on the Administration of Construction Project Environmental Protection, 1992.08.17;

(11) The Regulations on the Protection of Basic Farmland, 1998.12.27;

(12) The Rules for the Implementation of the Water Pollution Prevention and Control Law of the People's Republic of China, 2000.3.20;

(13) The Regulations of the People's Republic of China on Nature Reserves, 1994.12.01;

(14) The Circular of the General Office of the State Council on Strengthening the Administration of the Wetland Protection, 2004.06.05;

(15) The Circular of the State Council on Strengthening Urban Water Supply and Saving and Water Pollution Prevention, 2000.11.7;

(16) The Opinions on Strengthening Industrial Water Saving, 2000.10.25;

(17) The Circular on Strengthening the Administration of Environmental Impact Assessment of the Construction Projects with Loans from International Financial Organizations, 1993.6.21;

(18) The Provisions on Hierarchical Examination and Approval of the Environmental Impact Assessment of Construction Projects, 2008.12.11;

(19) The Guiding Catalog of Industrial Structure Adjustment, 2007;

(20) The Categorized List of the Environmental Impact Assessment of Construction Projects, 2008.10.01;

(21) The Interim Measures on Public Participation in Environmental Impact Assessment, 2006.02.22;

(22) The Measures for the Disclosure of Environmental Information (Trial Implementation), 2007.04.21;

(23) The Regulations on Water Resources Justification for Construction Projects, 2002.05;

(24) The Interim Provisions on the Punishment of Activities Violating the Law and Discipline on Environmental Protection, 2006.02.20;

(25) The Opinions on Strengthening the Environmental Protection of Construction Projects in the Development of the West Regions, 2001.01.08;