Project Loaned from World Bank

EnvironmentalImpactAssessment Summary Report ofthe Project in Liaoning

LiaoningAcademy of Environmental Sciences

July, 2007

CONTENTS

1. General Introduction

1.1 Background of the project

1.1.1 Related policies inLiaoning Province

1.1.2 Heating and Gas Supply Situation and Problems in Central Cities of Liaoning Province

1.1.3 Project Category

1.2 Assessment Bases

1.2.1 Law and Regulation Bases

1.2.2 Technical Bases

1.2.3 World Bank’s Safe and Security Policies

1.2.4 Project Documentations

1.2.5 Assessment Standard

1.3 Domestic Requirements for Environmental Assessment

1.4 Requirements of Environmental Impace Assessment of World Bank

2. General Background

3Environment Quality Situation

3.1 Heating system Situations in All Regions

3.1.1 District Heating Situation

3.1.2 District Heating Demand

3.2 District Natural Environment

3.3 District Atmospheric Pollution and Environment Sensitive Targets

3.3.1 Routine Monitoring Data of the Atmospheric Environmental Quality

3.3.2 Short-Term Monitoring Data

3.4 Incidence of Respiratory System Diseases

3.5 Acoustic Environmental Quality and Sensitive Receptors

3.6 Water Environment Quality Situation

3.7 Solid Waste Management

3.8 Culture Heritage

4. Environmental Influence Analysis

4.1 Analysis of favorable environmental impact

4.1.1 Ambient air quality improvement

4.1.2District heating quality improvement

4.1.3 The health condition improvement

4.2 The analysis of unfavorable environmental impact during construction

4.2.1 The security problem of the constructors

4.2.2 Analysis of the pollution generated by the heat source plant and heat exchange plants

4.2.3 Analysis of the pollution generated by heating pipeline network

4.3 Analysis of Unfavorable Impact upon the Environment

4.3.1 Ambient air quality

4.3.2 Analysis of the acoustic environmental impact

4.3.3 Analysis of waste water impact

4.3.4Treatment Situations of Solid Waste

4.3.5 Accident Risk Prevention Measures and Accident Emergency Response Plans of Gas Facilities Extension and Reconstruction Project in Yingkou City

4.3.6 Cultural properties

4.3.7 Relativity with other projects

5 Plan Comparison and Selection

6 Environmental Management Plan

6.1 Mitigation Plan

6.2 Environment Monitoring Plan

6.3 Monitoring Organizations Arrangement

6.3.1 Environmental Monitoring Organizations for These Projects

6.3.2 Monitoring Reports Types and Contents

6.3.3 Submission Time and Acceptance Units for the Monitoring Reports

6.3.4 Proposals and Feedback Requirements of Monitoring Reports

7 Strengthen the Environmental Protection Management Organization

8Environmental Management Plan

Investment

9 Public Participation and Information Announcement

9.1 Public Participation

9.2 Principle of Pubic Participation in the Survey

9.3 Public Participation Form

9.4 Public Participation and Organization Situation

9.5 Information Exchange and Feedback

10 Conclusion

10.1 Project Necessaray

10.2 Key Environmental Issues

10. 3 Positive Environmental Impacts

10.4 General Conclusion

1. General Introduction

To strengthen the infrastructure construction, improve the heating quality, solve the regional environmental pollution and increase pelopl’s living standard, Liaoning Provincial Government is plan to develop the projects on the infrastructure construction of the Third Batch of Mediem Cities loaned from the World Bank.This project has been the member of the Chinese Government program for utilizing the loan from World Bank in 2006. The project include infrasture project of 6 cities such as Anshan, Fushun, Benxi, Liaoyang, Yingkou and Huludao, and 10 sub-projects after the primanry discussion and screening. The total investment in this project is 1.93656 billion yuan, equivalent to US dollars 252 million yuan, of which, 126 million will be loaned from World Bank, and the rest of funds should be self –fund by the local government.

1.1 Background of the project

1.1.1Related policiesinLiaoningProvince

Liaoning Provincial Government has been supportive of the application for the World Bank loan which will be ued for funding the sub-projects. A coordination group for the implementation of Liaoning urban infrastructure in use of the World Bank loan has been organized by the General Office of Liaoning Provincial People’s Government, primarily in charge of examining and determining the master plan, organizing and coordinating the key problems involved in the policies, systems of national concern. The group consists of cadres from Liaoning Provincial Government, Financial Department of Liaoning Province,Liaoning Provincial Environmental Protection Bureau, Construction Department of Liaoning Province, Liaoning Provincial Price Bureau, Development and Reform Commission of Liaoning Province, Price Control Administration of Liaoning Province, Department of Audit of LiaoningProvince,The Land and Resources Department of Liaoning Province.The office of utilizing the foreign capital and urban infrastruction is in charge of the details under the leadership of the coordination group.

1.1.2Heating and Gas Supply Situation and Problems in Central Cities of LiaoningProvince

Cities applying for the loan from the World Bank loan are Anshan, Fushun, Benxi, Liaoyang, Yingkou and Huludao. At present, problems such as plenty of small boiler houses, poor heating quality and serious environmental pollution, dilapidated gas supply systems without repair exist in all cities. Please refer to the environmental management plans of all sub-projects for details.

Existing problems as follows:

Table 1-1 Heating Problems in Central Cities

Projects / Cities / Name of Project / District or local heating situation
供热
现状
Current
situation of heat
supply / Anshan
(Hai
cheng) / Central Heating Project in the North of Yong’an RoadTiedongDistrictHaichengCity / (1)Large numbers of scattered small boiler rooms with small capacity, low heating efficiency, serious energy and environmental pollution, excessive stokers of heavy labor intensity.
(2)Most of the boiler are running under overload without meeting heating quality, room temperature from 10 to 14℃accounts for 30%.
(3)Too simple smoke and dust removal equipment, absent of desulphurization devices, severe environmental pollution; piping network out of repair, water loss rate up to 4%~8%, piping network overhead some city trunks has greatly smeared the cityscape.
(4)Terribly unreasonable and disorderly divisional heat supply, crisscross heat supply piping network linking each heating enterprise which has increased both the project investment and operational expenses is designed seriously against the heating supply plan.
(5)Numerous of small heating enterprises with poor management and service.
Fushun / Heating network Construction of Heating Unit Expansion for Fushun Electric Generation Plant
Benxi / Central Heating Project in NanfenDistrictBenxiCity
CentralHeating Project for Benxi Iron & Steal Thermal Development Company
Liao
yang / Central Heating Project in GongchanglingDistrictLiaoyangCity
Ying
kou / Central Heating Project in DashiqiaoDistrictYingkouCity
Central Heating Network Project in Yingkou Economic Development Zone
Huaneng CentralHeating Project in North Part of Yingkou
Hulu
dao / Central Heating Project in Yangjiazhangzi Mining Area
Current
situation of gas supply / Ying
kou / Reconstruction and Expansion Project for Gas Facilities of YingkouCity / (1)Natural gas pipelines are severely worn after 30 years of service, especially for the backout of the cathode protection system for external current, the pipelines are left in a disastrous state with heave leakage, and can merely transmit the gas under low pressure, whichconsequently neither meet the requirement of gas transfusion nor lower the operational cost.
(2)There are two wet storage tankwith the capacity of 20,000 m3 and 50,000 m3 respectively, which were put in use in 1989 and 1995 without any overhaul in the gas source plant.
(3)The medium pressure pipeline in Yingkou city has been operating for over 10 years, and the mechanical flexible joints in somesections have get loose with slight leakage. The consequence would be disastrous if the gas spreads to the building or the sewers. In addition, with the constant expansion of urban construction, local occupation and depth changes can be found everywhere. The valve well over the pipeline, and most of the condense cylinders are damaged in various degree.
(4)Besides, Yingkou city is located in Liaohe estuary with low-lying terrain, high acidity and alkalinity and serious chemical and electro-chemical corrosion in some parts. With too limited corrosion proof method, and shortage of electro-chemical countermeasures, auxiliary facilities such as the condense cylinders are being damaged at a rather fast speed, resulting in the mounting management cost and safety hazards.

1.1.3Project Category

According to the World Bank policy on environmental assessment OP4.01, this is an EA category B project, featured by short construction period, mature and reliable technology, controllablepollutants discharge and the confined scale of environmental impact.

Notice of the General Office of the SDRC of Certain Issues Regarding Handling Confirmation for Debt from International Fiancial Organizations and Foreign Governments

In accordance with the Notification on Strengthening the Supervision of Environmental Impact Assessment of the Projects Funded by Loans from International Financial Institutions (No. 324) [1993] promulgated by State Environmental Protection Administration, State Planning Commission, Ministry of Finance and The People’s Bank of China in June 1993, the adverse environmental impact from this project is less than that from category A project, and can only act on the work site, which can be reversed in most cases. With the effective relief measures on environmental impact, waste gas pollutants emitted from this project have conformed to the regulations of Emission Standard for Air Pollutants from Boilers(GB13271-2001)and Integrated Emission Standard of Air Pollutants(GB16297-1996);waste water pollutants discharge have conformed to theIntegrated wastewater discharge standard(GB8978-1996)and Liaoning Local Standard on Discharge of Wastewater and Exhaust Gases(DB21-60-89); Solid wastes have been utilized and disposed in a multipurpose and orderly way, forbidden to discharge. By doing this, both the degree and scope of the impact from this project will be restrictive.

1.2Assessment Bases

1.2.1Law and Regulation Bases

(1)State environmental laws & regulations including Environmental Protection Laws of PRC, Water Pollution Prevention and Control Law ,Noise Pollution Prevention and Control Law,Solid Waste Pollution Prevention and Control LawThe Assessment of Environmental Impact In The People's Republic andCleaner Production Promotion Law of the People's Republic of China.

(2)RegulationsontheAdministrationofConstructionProjectEnvironmentalProtection

Decree No. 253 of the State Council of the People's Republic of China, November 29, 1998

(3)Classified Directory for Environmental Management of Construction Projects (File No. 14 of State Environmental Protection Administration, October, 2002

(4)Notice on the Issuance of“Suggestions on Strengthening the Water Conservation for Industries”(No. 1015 of State Economic & TradeResources, 2000) by State Economic & Trade Commission etc.

(5)Notification on Strengthening the Supervision of Environmental Impact Assessment of the Projects Funded by Loans from International Financial Institutions (No. 324) [1993] of State Environmental Protection Administration

(6)The Official Reply of State Council to the Tenth-Five-Year Plan ofAcid Rain and Sulfur Dioxide Pollution Control in Two Control Zones(Letter No. 84 [2002]) by State Council, in Sep. 2002

(7)State Department on the issuance of a comprehensive energy-saving reduction program of work ( No. 15 [2007] ) by State Council

(8)National Catalogue of Hazard Wastes (No.089 [1998]) State Environmental Protection Administration, National Economy and Trade Commission,Ministry of Foreign Trade and Economic, Ministry of Public Security, in January, 1998

(9)The Provisional Measure of Public Participating in Environmental Assessment(No. 28, [2006]) promulgated by State Environmental Protection Administration in February 14, 2006

(10)The Provisional Regulationfor Pollutants DischargeTotal Control of Liaoning Construction Project Environment Management No.166 [1997] by LiaoningProvincial Environmental Protection Bureau

(11)Notice on the Issuance of Integrated Control Plan for the Air Environment in Liaoning Province ( No. 29 [1999] promulgated by Liaoning Provincial People’s Government on September 17, 1999

(12)Notice on the Issuance of“Provisional Measures for Supervision and Management of Construction Project in Liaoning Province”No.24 [2007] promulgated by Liaoning Environmental Protection Bureau

1.2.2Technical Bases

(1)Technical Guidelines for Environmental Impact Assessment(HJ/T2.1~2.3-93)

P.R.C Standards for Environmental Protection Industry

(2)Technical guidelines for environmental impact assessment---AcousticEnvironment (HJ/T2.4~1995) P.R.C Standards for Environmental Protection Industry

(3)Technical guidelines for environmental impact assessment---Non- Polluted Ecological Impact (HJ/T19-1997)P.R.C Standards for Environmental Protection Industry

1.2.3World Bank’s Safe and Security Policies

According to the relevant provisions of World Bank, public interest shall be taken in full account, which isexactly the final objective for assessment institutions to conduct the environmental impact assessment;therefore, the assessment institutions have performed an item-by-item check and verification on the safe and security policies under the relevant articles of the World Bank documentations.

Table 1-2 Filter List of the Safe and Security Policies

Serial / Checked items / Outcome
1 / Environmental impact assessment / Environmental impact assessment has been conducted
2 / Natural habitat / All projects will be conducted in city proper, no natural habitats involved
3 / Relocation / No relocation occurred during projects construction
4 / Aboriginals / No Aboriginals involved in projects construction
5 / Cultural heritage / After survey by Cultural Relics Bureau, it is confirmed that no cultural heritage found in these projects
6 / Disputed region / No disputation involved in all international regions
7 / Dam safety / No large dams within the scope of assessment
8 / International waters / Without international waters
9 / Forest / No natural or man-made forest within the assessment scope
10 / Pesticide management / No pesticide or herbicide involved in project construction or operation

1.2.4Project Documentations

(1)Feasibility Study Report on Central Heating Project in the North of Yong’an Road Tiedong Haicheng City, by Urban Planning and Design Institute of Liaoning Province in May, 2007

(2)Feasibility Study Report on Central Heating Project in Gongchangling District of Liaoyang City by Urban Planning and Design Institute of Liaoning Province in May, 2007

(3)Feasibility Study Report on Central Heating Project in Dashiqiao District of Yingkou City by Urban Planning and Design Institute of Liaoning Province in May, 2007

(4)Feasibility Study Report on Central Heating Project in Nanfen District of Benxi City, by Urban Planning and Design Institute of Liaoning Province in May, 2007

(5)Feasibility Study Report on Central Heating Project in Yangjiazhangzi Mining Area

by Urban Planning and Design Institute of LiaoningProvince in July, 2007

(6)Feasibility Study Report on Heating Network Construction of Thermal Unit Expansion Project for Fushun Electric Generation Plantby Fushun International Engineering Consulting Center in May, 2006

(7)Feasibility Study Report on Centralized Heating Project for Benxi Iron & Steel Heating Development Company by Urban Planning and Design Institute of Liaoning Province in May, 2007

(8)Feasibility Study Report on Central Heating Network Project in Yingkou Economic Development Zoneby Urban Planning and Design Institute of Liaoning Province in July, 2007

(9)Feasibility Study Report on Huaneng Central Heating Project Phase I in North Part of Yingkou by Urban Planning and Design Institute of Liaoning Province in July, 2007

(10)Feasibility Study Report on Reconstruction and Expansion Project for Gas Facilities of Yingkou City by Shenyang Gas & Heat Research and Design Institute or Construction Ministry in July 2007

1.2.5Assessment Standard

Assessment standard for all sub-projects are showed as in table 1-3.

Table 1-3 Standard for All Sub-Projects

Cities / Name of Project / Standards for environmental quality / Pollutents discharge standards
Surface water GB3838-2002 / Ambient air GB3095-1996 / Acoustic environmental
GB3096-93 / Exhaust emission / Waster water discharge / Noise at factory boundary GB12348-90 / Construction noise / Solid wastes
An
Shan
( Hai
Cheng) / Central Heating Project in the North of Yong’an RoadTiedongDistrictHaichengCity / WudaoRiver
Grade IV / Grade II / Grade II / Waste gas pollutants from boilers should follow standard in second class district and time period II of Emission standard of air pollutants for coal--burning oil-burnig gas-fired boiler(GB13271-2001) / (GJ3082-1999) / Grade II / Noise limits for Construction Site / Follow
Pollution Control Limit for Solid Waste in Liaoning" (DB21-777-94)and
Standard for pollution control on the storage and disposal site for general industrial solid wastes(GB18599-2001)
Liao
yang / Central Heating Project in GongchanglingDistrictLiaoyangCity / TangRiver
Grade III / Grade II / Grade II / Water feeding standards for Gongchangling Sewage Plant / Grade II
Hu Ludao / Central Heating Project in Yangjiazhangzi Mining Area / BaishaRiver
Grade III / Grade II / Grade II / (GJ3082-1999) / Grade II
Ying
kou / Central Heating Project in DashiqiaoDistrictYingkouCity / LaobianRiver
Grade V / Grade II / Grade I or III / (GJ3082-1999) / Grade II
Central Heating Network Project in Yingkou Economic Development Zone / Grade II / Grade II / - / Grade II
Huaneng Central Heating Project in North Part of Yingkou / Grade II / Grade II / - / Grade II
Reconstruction and Expansion Project for Gas Facilities of YingkouCity / Grade II / Grade II / - / (GJ3082-1999) / Grade II
Fu shun / Heating network Construction of Heating Unit Expansion for Fushun Electric Generation Plant / HunRiver
Grade V / Grade II / Grade I or III of
sound environment / - / (GJ3082-1999) / Grade II
Benxi / Central Heating Project in NanfenDistrictBenxiCity / - / Grade II / Grade II / Follow the same standards as that for Haicheng projects / Grade II
Central Heating Project for Benxi Iron & Steal Thermal Development Company / Grade II / Grade II / - / Grade II

The following is concerned with detailed standards to be followed.

(1)Environmental Quality Standard

Ambient air quality

Ambient air quality shall adopt Ambient Air Quality Standard (GB3095-1996)Grade II, refer to table 1-4 for details.

Table 1-4 Ambient Air Quality Standard

No. / Project / Concentration limit for pollutants (mg/m3) / Remarks
Hourly average / Daily
average / Annual average
1 / TSP / - / 0.30 / 0.20
2 / SO2 / 0.50 / 0.15 / 0.06
3 / NO2 / 0.24 / 0.12 / 0.08 / According to document No. 1[2000] of UNCED
4 / PM10 / - / 0.15 / 0.10

Water environment

Environmental quality standards for surface water(GB3838-2002), refer to table 1-5 for details.

Table1-5 Surface Water Standard

Category / pH value / COD / Nitrogen, Ammonia / Petroleum
Grade III / 6~9 / 20 / 1.0 / 0.05
Grade III / 30 / 1.5 / 0.5
Grade V / 40 / 2.0 / 1.0

Environmental noise standard

Standard of Environmental Noise of Urban Area(GB3096-93), refer to table 1-6 for detailed value.

Table1-6 Standard Value of 5 Categories of Urban Environmental Noise

Equivalent sound level LAeq:dB

Category / Applicable areas / Daytime / Nighttime
0 / Recuperation district, villa and hotels / 50 / 40
1 / Residential, cultural & educational district / 55 / 45
2 / Mixed area of resident, commerce & industry / 60 / 50
3 / Industrial area / 65 / 55
4 / Both sides of the trunk roads / 70 / 55

(2)Emission Standards

Waste gas emission standard