46063-001: Consultant’s Report - Asian Development Bank€¦ · interviews, all of the future...

Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Project Number: 46063 November 2014

People’s Republic of China: Xinjiang Tacheng Border Cities and Counties Development Project (Financed by the Technical Assistance Special Fund)

FINAL REPORT

(Volume IV of V)

Prepared by HJI Group Corporation

Costa Mesa, California, USA

For Xinjiang Uygur Autonomous Region Government

Xinjiang Tacheng Border Cities and Counties Development Project (TA 8363-PRC) Final Report

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Supplementary Appendix 8

Financial Management Assessment


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Final Report


Project Number: 46063-001 / TA 8363 - PRC

July 2014

Xinjiang Tacheng Border Cities and Counties

Development Project


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A. Introduction

1. Effective financial management is a critical factor to ensure the benefits of a well designed and implemented project are sustainable. The EA/IAs’ financial management arrangements should be capable of and adequate for recording all transactions and balances, supporting the preparation of regular and reliable financial statements, safeguarding the entity’s assets, and are subject to audit. 2. The objective of financial management assessment to the project implementing agencies is to ensure that IAs are managerially and financially capable of efficiently and effectively implementing the proposed project. The specific appraisal goals are to: (i) determine whether the financial management capacity justifies ADB loan approval; (ii) identify the institution’s financial management development needs that should be addressed either as a project component or by TA; and (iii) confirm that the financial management system is sustainable throughout the project life.

3. The financial management assessment was conducted by the Consultant with the following methodologies: (i) collected and reviewed national and local rules or regulations on general accounting, auditing and financial management as well as specific policies on accounting method for projects financed by international aid agencies or foreign governments; (ii) on the basis of ADB Financial Management Assessment Questionnaire (FMAQ) undertook interviews with heads or staff of relevant accounting and finance division of the implementing agency in each project area. (iii) carried out on-the-site observation to the current practices in accounting, reporting and internal control in the EA/IAs with a focus on their implementation of construction projects; (iv) analysed the facts and information collected in terms of their suitability to the project implementation; (v) identified issues or risks associated with the entity’s financial management systems and recommended risk mitigation measures to facilitate more effective project design and implementation. (vi) presented the outcomes from questionnaire, facts found, assessment results and improvement recommendations through report writing.

4. The assessment follows ADB’s Guidelines for Financial Management and Analysis of Projects (2005). Its scope covers institutional capacities of the Executive Agency (EA) and Implementing Agencies (IA) at both the prefecture and city/county levels, funds flow arrangements, staffing, accounting policies and procedures, internal and external auditing arrangements, reporting and monitoring aspects and information system. The FMA targets the EA and all IAs for the sub-projects including Tacheng Prefecture Government’s (TPG) Finance Bureau (TFB), TPG Water Bureau (TWB), Liao Ta New District (LTND), E’min Construction Bureau (ECB), Tuoli Construction Burea (TCB) and Yumin Construction Bureau (YCB).

B. Executing and Implementing Agencies

5. The proposed Xinjiang Tacheng and Border Cities Urban Development Project is the sixth ADB supported project in Xinjiang Uyghur Autonomous Region (XUAR). The outcome of the project will be integrated urban infrastructure improvement in four administrative areas, i.e., Tacheng City and E’min, Tuoli and Yumin Counties. There are 11 project components (sub-projects) covering upgraded roads, water and wastewater management services, solid waste treatment, district heating and flood control. TPG is the EA and the governments of Tacheng City and the three counties are the implementing agencies for the


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sub-projects in their own jurisdictional areas. The sub-projects and their respective implementing agencies are demonstrated in Table 1. Table 1. Sub-Projects and Implementing Agencies

No. Sub-projects Implementing Agency

Tacheng City

1 Road Tacheng Municipal Government

2 Water Supply Tacheng Municipal Government

3 Sewage Tacheng Municipal Government

4 District Heating Tacheng Municipal Government

5 River Rehabilitation Tacheng Municipal Government

6 Solid waste treatment Tacheng Municipal Government

E’min County

7 Road E’min County Government

8 Water Supply E’min County Government

9 Sewage E’min County Government

Tuoli County

10 Road Tuoli County Government

Yumin County

11 Road Yumin County Government

6. TPG is the governing body of Tacheng Prefecture which covers seven cities or counties. It has been designated as the EA responsible for overall planning and management of the Project. Located in TPG’s Development and Reform Commission (TDRC), a Project Management Office (PMO) has been established to lead the project preparation activities, manage project progress, handle ADB loan disbursements, monitor project resettlement and environmental impacts, supervise and assist the IAs in implementing their own sub-projects. Historically TPG has been implementing 14 foreign aid projects financed by foreign governments, the World Bank or other international institutions, so it is not unfamiliar with international financing practices even though those funds were managed by an XUAR level executive agency. 7. The finance office of the EA will be the key node in the overall project financial management system and fund flow network. The office will not carried out the routine accounting-related works such as book keeping, contractor’s invoice processing and financial statement preparation for the sub-projects. It will focus on financing-related activities including counterpart fund payments, ADB loan recording, loan disbursement processing, financial statement summarizing and submitting to ADB,


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8. The EA’s PMO is currently considering contracting with external high-quality accountants from an accounting firm to do the accounting and finance duties in a more professional way. The Consultant has recommended that to maintain close ties with the relevant government bureaus and to facilitate various work processes, at least one financial person from the finance bureau and construction bureau each should be dispatched to the PMO as full time staff members. External professionals could be hired, but public tendering shall be conducted and training on ADB financial management principles and loan disbursement procedures is a necessity.

9. The financial management responsibilities of the EA include:

1) Organize and distribute the counterpart fund through the existing procedure; 2) Review payment documents for ADB loan disbursement submitted by the IAs; 3) Prepare initial ADB loan withdrawal applications with supporting documents attached and submit them to the superior PMO in the autonomous region; 4) Keep ADB loan related accounting records and prepare the financial section of the project progress reports to be submitted to ADB and annual financial reports for auditing; 5) Provide guidance to the financial staff of IAs; 6) Monitor and coordinate accounting and finance activities on the subprojects.

10. The grass roots accounting staff in IAs will do the day to day financial jobs and set up a base for the whole financial management structure. They should have accumulated hands-on experiences in the financial accounting and reporting for the subproject in a specific infrastructure sector. The financial management responsibilities of the IAs include:

1) Establish the accounts for each subproject and execute the fundamental accounting process for each transaction;

2) Receive and verify original invoices provided by the contractor for the finished works of the subprojects;

3) Trigger each payment process based on the acknowledged work quality by preparing and submitting payment documents to the EA’s PMO;

4) Formulate project statistics and regularly provide financial data to the PMO for financial statement preparation as required by ADB;

5) Frequently interface with the contractor, supplier and PMO to identify, report and solve financial problems.

C. Staffing

11. The accounting and finance people in EA will mainly come from the TPG finance bureau, while the accounting function in IAs will be performed by the staff from the local construction bureaus. According to feedback to the FMA questionnaire and Consultant’s interviews, all of the future project financial people have at least a two-year college degree or above and have obtained the basic accountant certificate, namely, the primary requirement for a person to undertake the accounting job. Most of them have stayed in the same agency for more than 10 years. Even though Liaota New District only has a history of 3 years, its financial staff had been transferred on secondment from the city’s finance bureau. Somebody with fairly good English needs to be arranged to support the financial people, especially at the early stage of project implementation. Table 2 lists the information of the pertinent financial staff.

12. Most agencies keep written position descriptions that clearly define duties, responsibilities, lines of supervision, and limits of authority for the financial officers. The TPG finance bureau regularly organizes professional training by external trainers to all the financial staff in the government agencies at the prefecture and city/county levels in order to let them be access to the newest knowledge and skills. As a usual practice, the officers in the government agencies do not sign labour contracts and there is generally no job rotation


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or internal transfer system among the financial staff. Training on ADB financial management guideline and disbursement procedure is definitely required.

Table 2. Profile of Financial Staff for Project Implementation

EA/IA Name Age Year in IA Position Education Credential

TPG Finance Bureau

Wu Songlin

48 25

Chief of Foreign-capital division

College degree

Senior Accountant Certificate

Wang Yong

39 13

Deputy chief of Foreign-capital division

College degree

Assistant Accountant Certificate

Tacheng Water Bureau

Wang Huihua

50 30 Accountant Two-year college

Assistant Accountant

Han Weihua

40 7 Cashier Two-year college

Basic accounting certificate

Liaota New District Adminitration

Cai Yongbin

46 3 Finance College degree


Liu Fei 40 3 Cashier College degree


Xie Zuguo 38 3 Cashier College degree


Yumin Construction Bureau

Li Guojun 45 29 Accountant College degree


Shu jianguo



E'min Construction Bureau

Lin Zhongyan



Hao Jinyuan



Tuoli Construction Bureau

Wang Hongmin



Guan Wenhui



Yu Fei 24 2 Book keeper

Two-year college


D. Accounting Policies and Procedures

13. The Ministry of Finance (MOF) developed since 1993 some 30 accounting standards aimed at bringing accounting and financial reporting practices in China more in line with the


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international best practices. The Standing Committee of National People’s Congress issued “PRC Accounting Law” in October 1999 which has been the highest guiding rule over the country’s accounting activities undertaken by all types of organization including government agencies.

14. Forty-three standards including the China’s Independent Auditing Standards, General Standard on Professional Ethics, General Standards on Quality Control and General Standard on Continuing Professional Education, after approval by the MOF, were issued by the Chinese Institute of Certified Public Accountants (CICPA) From 1994 to 2003, and became effective from 1 July 2003 at latest. The PRC Audit Law was revised in 2006 and the corresponding PRC Audit Law Implementation Rules were updated and promulgated in February 2010.

15. Published in July 2013 the “Accounting System for Administrative Institutions (draft)” sets guidance for the daily accounting works in various government agencies and some public service providers. It stipulates that the objective of government agencies’ accounting is to provide accounting information on the agencies’ financial status, implementation of the public budget and execution of the trusted governmental responsibilities so as to facilitate the accounting information users in their administrating, supervising and decision-making activities. The document has formulated a standard chart of accounts covering assets, liabilities, net assets, incomes and expenses. It particularly regulates that in an administrative institution the accounting for assets, liabilities and net assets should be conducted on the accrual basis, while the cash basis should be applied to incomes and expenses.

16. In accordance with the “Norm for Financial Management of Government Agencies”, implemented from January 2013, an unified income and expense management approach is adopted throughout the government agencies, where fund is distributed from the treasury bureau based on pre-determined amounts and pre-determined purposes and no compensation is granted in case of overspending. Every agency should prepare an annual budget to be submitted to the treasury for approval and then strictly executed. Project fund should be utilized on the fixed purpose with separate accounting treatment. Fund utilization status must be reported regularly and subject to irregular inspections and audits. Reports on financial settlement, asset delivery and project outcomes should also be made upon project completion. As a general practice, the long-term non-revenue earning assets administered by government agencies or their representatives are not depreciated. A government agency should prepare annual financial status explanatory memorandum and financial statements including asset balance sheet, income and expense statement, detailed expense sheet, fixed assets expenditure statement, etc.

17. The “Regulation on Financial Management for Capital Construction”, promulgated by MOF in 2002, is adaptable to any project developer who uses fund from the public fiscal budget no matter at national, provincial or local level. It indicates that the finance bureaus at relevant levels as the major agency to manage and supervise the financing activities for government-funded capital construction projects, both revenue-earning and non-revenue-earning in nature. During project construction the developer shall prepare an annual fund utilization plan to be approved by the finance bureau before the fund is actually distributed. The document requires that the developer should designate responsible persons and establish an independent financial management unit to deal with various works including implementation of the approved budget, accounting arrangement, recording of material and equipment purchase, inventory and other assets, monitoring of project progress, regular checking of physical assets and submission of financial statements.

18. “Accounting Method for World Bank Loan Projects” and “Rule on Fund Disbursement

Management for Projects Lent by International Financing Organizations”, issued or updated

by MOF separately in 2000 and 2007, are specifically regarding the accounting and financial

management of capital projects financed with loan from international financing organizations.


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Even though the first document targets World Bank-funded projects, ADB requires all its loan

projects to obey it as well. The method has established a unified chart of accounts and

corresponding serial numbers for the projects to apply in order to make it consistent and

easy for voucher record, journal entry, book keeping, reconciliation and accounting

computerization. The projects are required to submit bi-annual financial statements including,

fund balance sheet, project progress sheet, loan utilization statement and imprest account

statement. The rule on fund disbursement management for projects with funding from

international financing organizations is very much similar to the ADB’s loan disbursement

handbook but rather succinct and straightforward.

E. Financial Management Practices

19. The detailed project budget is usually formulated by the engineering division other

than the financial one, but the financial staff needs to make sure the costs are incurred within

the budget. The authorized signatories in the bank account are the financial chops and the

signature of the bureau’s director or deputy director in charge of accounting and finance. The

accounting jobs are properly separated. The organizations maintain an adequate and up-to-

date cashbook recording cash receipts and payments. The bank accounts, cashbook and

the general ledger are reconciled on a monthly basis.

20. All the financial transactions of the government agencies have to be approved by the

finance bureau, and the finance bureau at the county level directly makes payments on

behalf of other agencies while little cash is actually handled by the other agencies. There is

guidance on advance payments clearly defining proper authorization and ceiling of advance

amounts, particularly for construction projects. The project payment progress is required to

be strictly in line with the construction contracts signed with external contractors. Usually 10%

of each payment is withheld and will not be released until after the quality assurance period

expires.

21. A computerized accounting system called Xin Zhong DA has been installed by and

well connected with the finance bureau all over the government agencies. The accounting

records and payment processes are closely monitored by the finance bureau through the

network. The staff has been trained to use and maintain the data in the system. Project

financial reports in accordance with China Accounting Standards for Government Agencies

are generated by the system rather than by manual quarterly and yearly. However, it seems

that the reports contain mainly the summarized accounting data but inadequate information

and corresponding analysis about comparison of actual expenditures with budgeted and

programmed allocations. There is little awareness about cost-benefit analysis for publically

funded projects. This could be an area for improvement in future because financial people

are expected to play a monitoring and advisory role to the operations.

22. The other agencies do not have an internal auditor because all the financial

transactions are approved and monitored by the finance bureau. The finance bureau has set

up an internal auditing division in parallel with other divisions of the bureau, reporting directly

to the senior management. It plays a critical role in assuring that the normal financial

management procedures and policies are well adopted in all the government agencies and

all the payments included in the fiscal budget conform to the pre-determined objectives and

direct to the target beneficiaries. The TPG’s Audit Bureau is responsible for yearly external

auditing to financial activities including those related to project constructions conducted by

the government agencies.


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23. Table 3 summarizes the assessment results on the EA and IAs financial

management skills. It illustrates that skills in the general financial management practices

such as book keeping, project accounting, statutory reporting, internal control and audit are

sufficiently acquired. This is thanks to the traditional good accounting environment and

standardized practices within the government agencies. They are fairly good at the

computerized accounting system and payment processing. The project budgeting is modest

but the financial modelling, project evaluation and management accounting are basically

unsatisfactory.

Table 3. Review of the Agencies’ Financial Management Skills

Skills Required Current Level Comments

Financial accounting (book keeping)

High Staff skills in this area are well possessed. Most of them have an accounting career of over 10 years.

Corporate treasury (debt financing, investment, cash management)

Middle As government agencies they are handling fiscal expenditure instead of commercial investment. Almost no debt is involved. Cash management is strictly monitored.

Statutory reporting High Financial reports are regularly prepared, for instance, asset balance sheet, income and expenditure statement, fixed asset status report and so on. But there is no understanding of the financial reporting requirements for ADB loan.

Fixed assets accounting (including construction in process)

High The financial people in the IAs responsible for subproject implementations will come from the local construction bureaus which are constantly dealing with physical project constructions and public facility maintenances. They are very familiar with the project construction accounting.

Inventories accounting Low or irrelevant

There are public facilities rather than production inventories managed by government agencies.

Computerized accounting High The accounting systems in all the government agencies under TPG have been computerized with a software called Xin Zhong Da and connected with the finance bureau. Every financial transaction has to be approved and monitored by the finance bureau through the network.

Management accounting and reporting

Low Cost analysis and reporting are a weak point.

Corporate budgeting High An overall budget is done each year to the agency and approved by the finance bureau.

Project budgeting and costing Middle Project budgeting is carried out by the engineering people as a one-off task. No updating follows up periodically. Project costing is generally well done.


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Financial modelling and project evaluation techniques

Low The staff lacks such a skill as almost all their projects have been financed from the fiscal budget.

Internal control and audit High The internal control is very strong. The IAs do not need to have an internal auditor as all the transactions are approved and monitored by the finance bureau. The finance bureau has set up an internal auditing division overseeing all the agencies.

24. Upon review and assessment of the financial management system and routine

accounting practices, it is concluded that the EA and IAs have established quality financial

management institutions. The financial management policies and accounting standard which

are basically the national rules are rather perfective. An effective internal control is in place.

The finance bureau has maintained an overall monitoring and supervising structure to the

local agencies including the EA and IAs to assure the whole accounting and finance works

are under strict surveillance. The financial management capability of the Project-related

agencies is rated average and there is a space for enhancement through implementing the

Project.

25. Since both the EA and IAs have no prior record of directly managing funds from

foreign governments or international development institutions, familiarizing the relevant

personnel with ADB and its rules and procedures should be a starting step for them to

execute the ADB loan in a standard way. The staff shall be access to specific training on the

ADB’s procurement and disbursement guidelines as well as handbooks on environment

protection and social and resettlement management. Based on the historical performances

and current capacities, considering the great support and guidance to be provided by the

ADB Loan Project Management Office of XUAR, it is expected that the EA and IAs are able

to build and operate the proposed ADB funded Project satisfactorily.

F. Fund Flow Arrangements

26. On behalf of the PRC Government, the Ministry of Finance (MOF) is the first

borrower of ADB loan. MOF shall transfer the proceeds of the loan to the ADB loan end-

users through XUAR finance department, TPG finance bureau and the city/county finance

bureaus. The terms and conditions stated in the Loan Agreement between ADB and MOF

should be fully prosecuted during the loan proceeds transfer process. Apart from the ADB

loan the Project will receive counterpart funding from the city/county governments. Loan

guarantee and counter guarantees will be provided by the relevant governments from the

local ones through to XUAG Government. A primary fund flow chart is shown in Figure 1.


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Figure 1. Fund Flow Chart

ADB fund flow; Counterpart funding; Loan guarantee;

Contracting; Coordinating; PRC = People’s Republic of China;

XUAR = Xinjiang Uyghur Autonomous Region; TPG = Tacheng Prefecture Government;

EA = Executive Agency; IA = Implementing Agency; PMO = Project Management Office

Asian Development Bank Ministry of Finance National Development & Reform Commission

PRC Government

Construction Department

Development & Reform Commission

Finance Department

XUAR Government

Steering Committee

XUAR PMO

Construction Bureau


Finance Bureau

Tacheng Prefecture Government (EA)

Steering Committee

TPG PMO

Construction Bureau


Finance Bureau

City/County Government (IA)

Local PMO

Contractor & Supplier

Steering Committee


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Annex 1. Financial Management Assessment Questionnaire for Tacheng Prefecture Government – the Executive Agency to the Project

Topic Response Remarks

1. Implementing Agency

1.1 Which entity is the IA for the project financial management ?

What is the entity’s legal status?

Tacheng Prefecture Government (TPG) under Xinjiang Urumchi Autonomous Region (XUAR).

A government agency

1.2a Has the entity implemented an externally financed project in the past - if so, please provide details?

Yes. It has implemented 14 foreign aid projects financed from foreign government loans, the world bank loan or other international institutions’ funds.

1.2b Will financial management of the project be the responsibility of a stand-alone PIU? - or of a PIU using IA financial systems?

The EA financial system will be fully adopted to the project.

1.3 What are the statutory reporting requirements for the entity?

Regularly submitting bi-annual or annual statistic reports or financial statements about those projects’ progresses, status of loan repayment, fund withdrawal plan and foreign debt monitoring.

1.4 Is the governing body for the project independent?

Yes.

1.5 Is the organizational structure appropriate for the needs of the project?

Yes. The finance bureau is a member of the overall Project Management Office (PMO) at the TPG level. The same model is copied to the PMO at the city and county level.

2. Funds Flow/Disbursement Arrangements

2.1

Describe (proposed) project funds flow

arrangements, including a chart and

explanation of the flow of funds from ADB,

government and other financiers.

The fund flow chart is illustrated in the main text.

2.2 Are the (proposed) arrangements to transfer

the proceeds of the loan (from the

government / Finance Ministry) to the entity

satisfactory?

Yes.


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2.3 Does the entity have previous experience of

using imprest fund and SOE procedures?

Have there been the major problems in the

past in receipt of funds by the entity?

Were there any problems or issues

encountered by project staff in the operation

of the imprest fund or SOE procedures in the

past?

No. They need training on the topic.

2.4 In which bank will the Imprest Account be

opened?

Not determined but will be selected through public tendering

Its current bank is Industrial and Commercial Bank of China.

2.5 Does the (proposed) implementing unit (EA,

IA or PIU) have experience in the

management of disbursements from ADB?

No.

2.7 Does the entity have/need to develop capacity

to manage foreign exchange risks?

Not necessarily. The Project Management Office at the provincial level who is overseeing all the ADB-funded projects within XUAR is in a better position to handle foreign exchange risks.

2.8 How are the counterpart funds accessed? Apart from ADB loan, TPG and the governments in the 4 project areas will contribute counterpart funding from their respective fiscal budgets.

See description in the main text.

2.9 How are payments made for the counterpart

funds?

The counterpart funds will be disbursed to the project through the finance bureaus at two levels.

2.10 If part of the project is implemented by

communities or NGOs, does the PIU have the

necessary reporting and monitoring features

built into its systems to track the use of project

proceeds by such agencies?

Irrelevant.

2.11 Are the beneficiaries required to contribute to

project costs? If beneficiaries have an option

to contribute in kind (in the form of labor), are

proper guidelines formulated to record and

value the labor contribution?

Irrelevant.


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3 Staffing

(Focus on entity responsible for FM processes

– and state which entity is subject of the

responses)

3.1 What is the (proposed) organizational

structure of the accounting department?

Attach an organization chart.

As the project’s EA, the TPG finance bureau will handle the loan disbursement activities.

3.2 Identify the (proposed) accounts staff,

including job title, responsibilities, educational

background and professional experience.

Attach job descriptions and CVs of key

accounting staff.

A deputy director of the bureau, a chief of the foreign-fund division and a deputy-chief of the foreign-fund division.

Information on the proposed finance personnel for the PMO at the TPG level is given in the main text.

3.3 Is the project finance and accounting function

staffed adequately?

The finance bureau will dispatch people to the TPG’s PMO. In addition, it plans to hire high quality accountants from an external professional accounting firm through public tendering.

It is to assure the quality of financial management in EA for the project.

3.4 Is the finance and accounts staff adequately

qualified and experienced?

Yes. Training on ADB financial management guideline and procurement and disbursement manuals are especially necessary.

3.5 Are the project accounts and finance staff

trained in ADB procedures?

No.

3.6 What is the duration of the contract with the

finance and accounts staff?

No contract for the government staff.

3.7 Indicate key positions not contracted yet, and

the estimated date of appointment.

Somebody with fairly good English is necessary.

3.8 Does the project have written position

descriptions that clearly define duties,

responsibilities, lines of supervision, and limits

of authority for all of the officers, managers,

and staff?

Yes.

3.9 At what frequency are personnel transferred?

No internal personnel transfer is regularly arranged.

This is a loophole in the financial management system.

3.10 What is training policy for the finance and

accounting staff?

Training is organized almost each year by the TPG finance bureau itself.


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4. Accounting Policies and Procedures



responses)

4.1 Does the entity have an accounting system

that allows for the proper recording of project

financial transactions, including the allocation

of expenditures in accordance with the

respective components, disbursement

categories, and sources of funds? Will the

project use the entity accounting system?

Yes. A uniformed national accounting standard for government agencies is applied.

4.2 Are controls in place concerning the

preparation and approval of transactions,

ensuring that all transactions are correctly

made and adequately explained?

Yes.

4.3 Is the chart of accounts adequate to properly

account for and report on project activities and

disbursement categories?

Yes.

4.4 Are cost allocations to the various funding

sources made accurately and in accordance

with established agreements?

Yes.

4.5 Are the General Ledger and subsidiary

ledgers reconciled and in balance?

Yes.

4.6 Are all accounting and supporting documents

retained on a permanent basis in a defined

system that allows authorized users easy

access?

Yes.

Segregation of Duties

4.7 Are the following functional responsibilities

performed by different units or persons: (i)

authorization to execute a transaction; (ii)

recording of the transaction; and (iii) custody

of assets involved in the transaction?

Yes. The finance bureau will be the final approver for each transaction at both the TPG and county levels, while the IAs will keep the accounting records and prepare the initial disbursement documents.

4.8 Are the functions of ordering, receiving,

accounting for, and paying for goods and

services appropriately segregated?

Yes.


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4.9 Are bank reconciliations prepared by

someone other than those who make or

approve payments?

Yes.

Budgeting System

4.10 Do budgets include physical and financial

targets?

Irrelevant. The project budget will be prepared by the IAs rather than the EA.

4.11 Are budgets prepared for all significant

activities in sufficient detail to provide a

meaningful tool with which to monitor

subsequent performance?

Irrelevant.

4.12 Are actual expenditures compared to the

budget with reasonable frequency, and

explanations required for significant variations

from the budget?

Irrelevant.

4.13 Are approvals for variations from the budget

required in advance or after the fact?

Irrelevant.

4.14 Who is responsible for preparation and

approval of budgets?

The TPG finance bureau shall finally approve each project budget.

4.15 Are procedures in place to plan project

activities, collect information from the units in

charge of the different components, and

prepare the budgets?

Irrelevant.

4.16 Are the project plans and budgets of project

activities realistic, based on valid

assumptions, and developed by

knowledgeable individuals?

Irrelevant.


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Payments

4.17 Do invoice-processing procedures provide for:

(i) Copies of purchase orders and receiving

reports to be obtained directly from issuing

departments? (ii) Comparison of invoice

quantities, prices and terms, with those

indicated on the purchase order and with

records of goods actually received? (iii)

Comparison of invoice quantities with those

indicated on the receiving reports? (iv)

Checking the accuracy of calculations?

The invoice will be processed by the IAs.

4.18 Are all invoices stamped PAID, dated,

reviewed and approved, and clearly marked

for account code assignment?

Irrelevant.

4.19 Do controls exist for the preparation of the

payroll and are changes to the payroll

properly authorized?

The TPG finance bureau shall finally approve each payroll.

Policies And Procedures

4.20 What is the basis of accounting (e.g., cash,

accrual)?

Accrual basis.

4.21 What accounting standards are followed?

The national accounting standard for government agencies.

4.22 Does the project have an adequate policies

and procedures manual to guide activities and

ensure staff accountability?

Yes.

4.23 Is the accounting policy and procedure

manual updated for the project activities?

No. Some special requirements for the ADB-funded project should be stated by referring to the ADB guidelines or manuals.

4.24 Do procedures exist to ensure that only

authorized persons can alter or establish a

new accounting principle, policy or procedure

to be used by the entity?

Yes.


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4.25 Are there written policies and procedures

covering all routine financial management and

related administrative activities?

Yes.

4.26 Do policies and procedures clearly define

conflict of interest and related party

transactions (real and apparent) and provide

safeguards to protect the organization from

them?

Yes.

4.27 Are manuals distributed to appropriate

personnel?

Yes.

Cash and Bank

4.28 Indicate names and positions of authorized

signatories in the bank accounts.

The authorized signatories in the bank account are the financial chops and General Manager’s signature.

4.29 Does the organization maintain an adequate,

up-to-date cashbook, recording receipts and

payments?

Yes.

4.30 Do controls exist for the collection, timely

deposit and recording of receipts at each

collection location?

Yes. All the transactions are going through the finance bureau, and almost no cash is handled.

4.31 Are bank and cash reconciled on a monthly

basis?

Yes.

4.32 Are all unusual items on the bank

reconciliation reviewed and approved by a

responsible official?

Yes

4.33 Are all receipts deposited on a timely basis?

Yes


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Safeguard over Assets

4.34 Is there a system of adequate safeguards to

protect assets from fraud, waste and abuse?

Yes

4.35 Are subsidiary records of fixed assets and

stocks kept up to date and reconciled with

control accounts?

Yes.

4.36 Are there periodic physical inventories of fixed

assets and stocks?

Irrelevant.

4.37 Are assets sufficiently covered by insurance

policies?

Irrelevant.

Other Offices and Implementing Entities

4.38 Are there any other regional offices or

executing entities participating in

implementation?

No. The EA is responsible for the whole project at the TPG level.

4.39 Has the project established controls and

procedures for flow of funds, financial

information, accountability, and audits in

relation to the other offices or entities?

Irrelevant.

4.40 Does information among the different

offices/implementing agencies flow in an

accurate and timely fashion?

Irrelevant.

4.41 Are periodic reconciliations performed among

the different offices/implementing agencies?

Irrelevant.

Advance Payments

4.42 Does the entity have adequate guidelines for

advance payments to individual staff and

regional offices (if applicable)?

Yes.


20


4.43 Do the guidelines clearly define proper

authorizations, ceiling of advance amounts

and appropriate liquidation periods?

Yes.

4.44 Are controls in place to monitor outstanding

advances and ensure frequent liquidation?

Are the outstanding advances periodically

confirmed with the concerned staff?

Yes

4.45 Do regional offices open separate bank

accounts or maintain cashbooks to be used

exclusively for advances from ADB financing,

counterpart funding and other financiers? Are

the bank accounts and cashbook reconciled

to the general ledger or sub-ledger on a

monthly basis?

Irrelevant.

Other

4.46 Has the project advised employees,

beneficiaries and other recipients to whom to

report if they suspect fraud, waste or misuse

of project resources or property?

Yes

5. Internal Audit

5.1 Is there an internal audit department in the

entity?

Yes. The finance bureau at

each level has an internal

auditing division.

5.2 What are the qualifications and experience of

audit department staff?

The internal audit staff

should possess accounting

background and is required

to obtain an internal audit

certificate through training.

5.3 To whom does the internal auditor report?

Directly report to the

highest management team

of the finance bureau and

the related agencies who

are using government

funds.

5.4 Will the internal audit department include the

project in its work program?

Yes


21


5.5 Are actions taken on the internal audit

findings?

Yes.

6. External Audit

6.1 Is the entity financial statement audited

regularly by an independent auditor? Who is

the auditor?

Yes, the auditor is the

prefecture’s auditing

bureau.

6.2 Are there any delays in audit of the entity?

When are the audit reports issued?

No delay. The audit report

is issued after the auditing

is complete.

6.3 Is the audit of the entity conducted according

to the International Standards on Auditing?

China has its own audit law

and specifications. But it is

very close to the

international one.

6.4 Were there any major accountability issues

brought out in the audit report of the past

three years?

Were there any issues noted in prior audit

reports related to the operation of imprest

account or use of SOE procedures?

No.

6.5 Will the entity auditor audit the project

accounts or will another auditor be appointed

to audit the project financial statements?

The project’s auditor will be

a different one, who will be

designated by the

government and

acknowledged by ADB.

6.6 Are there any recommendations made by the

auditors in prior audit reports or management

letters that have not yet been implemented?

No

6.7 Is the project subject to any kind of audit from

an independent governmental entity (e.g., the

supreme audit institution) in addition to the

external audit?

No

6.8 Has the project prepared acceptable terms of

reference for an annual project audit?

Yes


22


7. Reporting and Monitoring

7.1 Are financial statements prepared for the

entity? In accordance with which accounting

standards?

Yes, in accordance with

China Accounting

Standards for Government

Agencies.


implementing unit?

Yes

7.3 What is the frequency of preparation of

financial statements? Are the reports

prepared in a timely fashion so as to useful to

management for decision making?

Financial statements are

prepared quarterly or

annually.

7.4 Does the reporting system need to be

adapted to report on the project components?

Yes

7.5 Does the reporting system have the capacity

to link the financial information with the

project's physical progress? If separate

systems are used to gather and compile

physical data, what controls are in place to

reduce the risk that the physical data may not

synchronize with the financial data?

Yes

7.6 Does the project have established financial

management reporting responsibilities that

specify what reports are to be prepared, what

they are to contain, and how they are to be

used?

The project has established

financial management

reporting system.

7.7 Are financial management reports used by

management?

Yes

7.8 Do the financial reports compare actual

expenditures with budgeted and programmed

allocations?

Yes.

7.9 Are financial reports prepared directly by the

automated accounting system or are they

prepared by spreadsheets or some other

means?

By the computerized

accounting system.

8. Information Systems

8.1 Is the financial management system

computerized?

Yes

8.2 Can the system produce the necessary

project financial reports?

Yes


23


8.3 Is the staff adequately trained to maintain the

system?

Yes

8.4 Does the management organization and

processing system safeguard the

confidentiality, integrity and availability of the

data?

Yes


24

Annex 2. Financial Management Assessment Questionnaire for Tacheng City Water Conservancy Bureau – the Implementing Agency to the River Rehabilitation Sub-project





Tacheng City Water Conservancy Bureau. It is government agency under Tacheng Municipality.

It does not have an independent legal status.


Yes. The bureau is continually constructing and maintaining various river-based water facilities including a project with RMB20 million of loan from Japan International Cooperation Agency (JICA).

Almost all the funds for the externally financed projects are coming in through the city finance bureau.


The IA financial system will be fully adopted to the project.


The project related financial reports include an annual balance sheet and investment statistic statement; quarterly reconciliation statement and engineering quantity statement.


Yes. But it is a government agency under the municipal authority.


Yes. The IA’s organization structure is adaptable to water facility construction and management.


2.1









satisfactory?

Yes.


25


2.3 Does the entity have previous experience

of using imprest fund and SOE

procedures?






past?



opened?


Its current bank is Agricultural Bank of China.




No.



Not necessarily. The Project Management Office at the provincial level who is overseeing all the ADB projects within XUAR is in a better position to handle foreign exchange risks.




funds?

The counterpart funds will be disbursed to the project through the relevant finance bureau.






Irrelevant.






No.


26


3 Staffing



responses)




It is expected that during the project construction period, Tacheng water bureau will handle all the accounting works for the river rehabilitation sub-project. The bureau will establish a PIU including an accountant and a cashier.





accounting staff.

Yes. Information on the proposed accounts staff for the sub-project is given in the main text.


staffed adequately?

Yes. The head of accounting department of the bureau will also supervise the project’s accounting staff.



Yes.



No.






But somebody with fairly good English is necessary.





and staff?

No. It should make the position description ready at least for the project.


27






accounting staff?

Training is organized almost each year by the provincial water bureau to all the accounting staff in the province.




responses)








Yes. A uniformed national accounting standard for water-related business is applied.





Yes.




Yes.




Yes.



Yes.




access?

Yes.


28








Yes.




Yes.



approve payments?

Yes.

Budgeting System


targets?

Yes. For each project there is only one-time overall budget and no short-term budget is made or renewed. This is disadvantageous to budget control.





Yes.




from the budget?

Not frequently. Since there is just a one-time budget, the comparison between actual expenditure and the budget can only be done after project completion. This makes the comparison meaningless to the project implementation.



If there is significant variations from the budget (above the budget), it is required to get the approval from the management and then make a change.


29




The budget is prepared by the engineering division and approved by the city’s finance bureau as well as the senior management of the water bureau.





Yes.





Yes.

Payments











Yes. Since most money used by the water bureau is provided by the finance bureau, the computerized accounting system of the water bureau is connected with that of the finance bureau. Therefore, the finance bureau is able to monitor each transaction in a real-time manner. This plays an effective safeguard role in supervision of financial activities by an external agency.




Yes. These are done in the accounting voucher.




Yes.



accrual)?

Accrual basis.


30



The national accounting standard for water-related businesses.




Yes.








Yes.




Yes.





them?

Yes.


personnel?

Yes.

Cash and Bank






payments?

Yes.


31





Yes. Overwhelmingly majority of the transactions are going through the bank transfers, so very few cash is handled.


basis?

Yes




Yes


Yes




Yes



control accounts?

Yes.


assets and stocks?

Yes.


policies?

Due to the nature of water facilities, most of the assets are not insured.




implementation?

No. This PIU is only responsible for the sub-project in Tacheng City.





Irrelevant.


32





Irrelevant.



Irrelevant.

Advance Payments




Yes.




Yes.





Yes







monthly basis?

Irrelevant.

Other





Yes


33


5. Internal Audit


entity?

No. The IA does not need to

have an internal auditor

because all the financial

transactions are approved

and monitored by the

finance bureau and the

finance bureau has set up

an internal auditing

division.














funds.



Yes


findings?

Yes.

6. External Audit



the auditor?


municipal auditing bureau.



No, the audit report is

issued after the auditing is

complete.





very close to the

international one.


34




three years?




No.






designated by the

government and





No




external audit?

No



Yes




standards?


China Accounting


Agencies.


implementing unit?

Yes







annually.



Yes


35









Yes





used?



reporting system.


management?

Yes



allocations?

Yes




means?

By the computerized

accounting system.



computerized?

Yes



Yes


system?

Yes




data?

Yes


36

Annex 3. Financial Management Assessment Questionnaire for Liaota New District Administration– the Implementing Agency to the Sub-projects in Tacheng City





Liaota New District Administration (LNDA) is a government agency under Tacheng Municipality.


No. The quite few projects implemented by LNDA are financed through the government’s fiscal budget.




The project related financial reports include quarterly reconciliation statement and an annual expenditure statistic statement.


Yes. But its accounting and finance functions are subject to supervision by the finance bureau.


Yes.


2.1









satisfactory?

Yes.


37









past?



opened?





No.







funds?

The counterpart funds will be disbursed to the project through the relevant finance bureau.






Irrelevant.






Irrelevant.


38


3 Staffing



responses)




It is expected that during the project construction period, LNDA will handle all the accounting works for the road, water and wastewater pipeline sub-projects.





accounting staff.



staffed adequately?

Yes. The head of accounting department of LNDA will also supervise the project’s accounting staff.



Not yet. All the accounting staff had previous experiences in the finance bureau, but may lack records in project management since they came to LNDA only 3 years ago. Training on ADB financial management guideline and procurement and disbursement manuals are especially necessary.



No.











and staff?

No. It should make the position description ready at least for the project.





39



accounting staff?

Training is organized almost each year by the city’s finance bureau.




responses)













Yes.




Yes.




Yes.



Yes.




access?

Yes.







Yes. The responsibility for approval of project expenditure rests with the finance bureau instead of LNDA itself.




Yes.


40




approve payments?

Yes.

Budgeting System


targets?

Yes. For each project there is only one-time overall budget.





Yes.




from the budget?

Not frequently.



If there is significant variations from the budget (above the budget), it is required to get the approval from the management and then make a change.



The budget is prepared by the engineering division and approved by the city’s finance bureau as well as the senior management of LNDA.





Yes.





Yes.


41


Payments











Yes.








Yes.



accrual)?

Accrual basis.






Yes, but quite simple.








Yes.


42





Yes.





them?

Yes.


personnel?

Yes.

Cash and Bank






payments?

Yes.




Yes. Overwhelmingly majority of the transactions are going through the bank transfers, so very few cash is handled.


basis?

Yes




Yes


Yes


43





Yes



control accounts?

Yes.


assets and stocks?

Yes.


policies?

There has not been any large fixed asset except the office building.




implementation?

No. This PIU is only responsible for the sub-projects in the new district.





Irrelevant.




Irrelevant.



Irrelevant.

Advance Payments




Yes.


44





Yes.





Yes







monthly basis?

Irrelevant.

Other





Yes

5. Internal Audit


entity?









division.














funds.


45




Yes


findings?

Yes.

6. External Audit



the auditor?


municipal auditing bureau.





complete.





very close to the

international one.



three years?




No.






designated by the

government and





No




external audit?

No



Yes


46





standards?


China Accounting


Agencies.


implementing unit?

Yes







annually.



Yes








Yes





used?



reporting system.


management?

Yes



allocations?

No. The financial report is

relatively brief. No analysis

is conducted in the report.

The reporting need to be

enhanced by adding more

data and practicing

financial analysis.




means?

By the computerized

accounting system.



computerized?

Yes



Yes


47



system?

Yes




data?

Yes


48

Annex 4. Financial Management Assessment Questionnaire for E’min County Construction Bureau – the Implementing Agency to the Sub-projects in E’min County



1.1 Which entity is the IA for the project financial management?


E’min County Construction Bureau (ECCB) is a government agency under E’min County Government.


No. All the projects implemented or maintained by ECCB are financed through the government’s fiscal budget.






Yes. But its accounting and finance functions are totally controlled by the finance bureau.


Yes.


2.1









satisfactory?

Yes.


49









past?



opened?


Its current bank is Industrial and Commercial Bank of China.




No.







funds?

The counterpart funds will be disbursed to the project through the local finance bureau.






Irrelevant.






Irrelevant.


50


3 Staffing



responses)




One accountant and one cashier.

It is expected that during the project construction period, ECCB will handle all the accounting works for the sub-projects in the county.





accounting staff.



staffed adequately?

Yes. The finance bureau supervises the project’s accounting staff.






No.











and staff?

Yes.





accounting staff?

Training is organized almost each year by the city’s finance bureau.


51





responses)













Yes.




Yes.




Yes.



Yes.




access?

Yes.







Yes. The responsibility for approval of project expenditure rests with the finance bureau instead of ECCB itself.




Yes.



approve payments?

Yes.


52


Budgeting System


targets?

Yes. The project budget is prepared by the engineering department rather than the accounting department.





Yes.




from the budget?

Yes.



Yes.



The budget is prepared by the engineering division and approved by the city’s finance bureau.





Yes.





Yes.


53


Payments











Yes.








Yes.



accrual)?

Accrual basis.






Yes.








Yes.


54





Yes.





them?

Yes.


personnel?

Yes.

Cash and Bank






payments?

Yes.




Yes. All the transactions are going through the finance bureau, and no cash is handled.


basis?

The reconciliation is with

the finance bureau instead

of a bank.




Yes


Yes


55





Yes



control accounts?

Yes.


assets and stocks?

Yes.


policies?

No.




implementation?

No. This PIU is only responsible for the sub-projects in the county.





Irrelevant.




Irrelevant.



Irrelevant.

Advance Payments




Yes.


56





Yes.





Yes







monthly basis?

Irrelevant.

Other





Yes

5. Internal Audit


entity?









division.














funds.


57




Yes


findings?

Yes.

6. External Audit



the auditor?


county’s auditing bureau.





complete.





very close to the

international one.



three years?




No.






designated by the

government and





No




external audit?

No



Yes


58





standards?


China Accounting


Agencies.


implementing unit?

Yes







annually.



Yes








Yes





used?



reporting system.


management?

Yes



allocations?






data and practicing

financial analysis.




means?

By the computerized

accounting system.



computerized?

Yes



Yes


59



system?

Yes




data?

Yes


60

Annex 5. Financial Management Assessment Questionnaire for Tuoli County Construction Bureau – the Implementing Agency to the Sub-project in Tuoli County





Tuoli County Construction Bureau (TCCB) is a government agency under Tuoli County Government.


No. The sub-project implemented or maintained by TCCB will be financed through the government’s fiscal budget.








Yes.


2.1









satisfactory?

Yes.


61









past?



opened?





No.







funds?







Irrelevant.






Irrelevant.


62


3 Staffing



responses)




One accountant, one book keeper and one cashier.

It is expected that during the project construction period, TCCB will handle all the accounting works for the sub-project in the county.





accounting staff.



staffed adequately?







No.











and staff?

Yes.





accounting staff?

Training is organized almost each year by the county’s finance bureau.


63





responses)













Yes.




Yes.




Yes.



Yes.




access?

Yes.







Yes. The responsibility for approval of project expenditure rests with the finance bureau instead of TCCB itself.




Yes.



approve payments?

Yes.


64


Budgeting System


targets?






Yes.




from the budget?

Yes.



Yes.



The budget is prepared by the engineering division and approved by the county’s finance bureau.





Yes.





Yes.


65


Payments











Yes.








Yes.



accrual)?

Accrual basis.






Yes.








Yes.


66





Yes.





them?

Yes.


personnel?

Yes.

Cash and Bank






payments?

Yes.






basis?



of a bank.




Yes


Yes


67





Yes



control accounts?

Yes.


assets and stocks?

Yes.


policies?

No.




implementation?

No. This IA is only responsible for the sub-project in the county.





Irrelevant.




Irrelevant.



Irrelevant.

Advance Payments




Yes.


68





Yes.





Yes







monthly basis?

Irrelevant.

Other





Yes

5. Internal Audit


entity?









division.














funds.


69




Yes


findings?

Yes.

6. External Audit



the auditor?







is complete.





very close to the

international one.



three years?




No.






designated by the

government and





No




external audit?

No



Yes


70





standards?


China Accounting


Agencies.


implementing unit?

Yes







annually.



Yes








Yes





used?



reporting system.


management?

Yes



allocations?






data and practicing

financial analysis.




means?

By the computerized

accounting system.



computerized?

Yes



Yes


71



system?

Yes




data?

Yes


72

Annex 6. Financial Management Assessment Questionnaire for Yumin County Construction Bureau – the Implementing Agency to the Sub-project in Yumin County





Yumin County Construction Bureau (YCCB) is a government agency under Yumin County Government.


No. The sub-project implemented or maintained by YCCB will be financed through the government’s fiscal budget.








Yes.


2.1









satisfactory?

Yes.


73









past?



opened?





No.







funds?







Irrelevant.






Irrelevant.


74


3 Staffing



responses)




One accountant and one cashier.

It is expected that during the project construction period, YCCB will handle all the accounting works for the sub-project in the county.





accounting staff.



staffed adequately?







No.











and staff?

Yes.





accounting staff?

Training is organized almost each year by the county’s finance bureau.


75





responses)













Yes.




Yes.




Yes.



Yes.




access?

Yes.







Yes. The responsibility for approval of project expenditure rests with the finance bureau instead of YCCB itself.




Yes.



approve payments?

Yes.


76


Budgeting System


targets?






Yes.




from the budget?

Yes.



Yes.



The budget is prepared by the engineering division and approved by the county’s finance bureau.





Yes.





Yes.


77


Payments











Yes.








Yes.



accrual)?

Accrual basis.






Yes.








Yes.


78





Yes.





them?

Yes.


personnel?

Yes.

Cash and Bank






payments?

Yes.






basis?



of a bank.




Yes


Yes


79





Yes



control accounts?

Yes.


assets and stocks?

Yes.


policies?

No.




implementation?

No. This IA is only responsible for the sub-project in the county.





Irrelevant.




Irrelevant.



Irrelevant.

Advance Payments




Yes.


80





Yes.





Yes







monthly basis?

Irrelevant.

Other





Yes

5. Internal Audit


entity?









division.














funds.


81




Yes


findings?

Yes.

6. External Audit



the auditor?







is complete.





very close to the

international one.



three years?




No.






designated by the

government and





No




external audit?

No



Yes


82





standards?


China Accounting


Agencies.


implementing unit?

Yes







annually.



Yes








Yes





used?



reporting system.


management?

Yes



allocations?






data and practicing

financial analysis.




means?

By the computerized

accounting system.



computerized?

Yes



Yes


83



system?

Yes




data?

Yes


1


Detailed Financial Analysis


2

Final Report

Financial Analysis

Project Number: 46063-001 / TA 8363 - PRC

July 2014


Development Project


3

Detailed Financial Analysis

A. Introduction

1. The proposed Xinjiang Tacheng and Border Cities Urban Development Project covers four jurisdictional areas, i.e., Tacheng City, E’min, Tuoli and Yumin Counties. The 11 project components (sub-projects) include upgrading of roads, water and wastewater management services, solid waste treatment, district heating and river rehabilitation. Among them the city/county’s public transport roads, river rehabilitation and solid waste management are treated as non-revenue-generating subprojects, while the water supply pipelines, wastewater discharge pipelines and district heating transmission facilities are revenue generating in nature.

2. A standard financial analysis process containing general principles and routine steps as described by the ADB Guidelines is followed. The ADB document “Financial Management and Analysis of Projects (2005)” is applied as the main instruction. For the revenue generating components financial return approach and tariff structure analysis in relation to end-users’ affordability have been carried out. For the non-revenue generating components assessment of the government’s fiscal capacity and solvency has been conducted to ensure the financial sustainability of those subprojects. The fiscal capacity review has assessed whether TPG and the city/county governments have the ability to provide the counterpart funds during the construction period and to cover the operation and maintenance (O&M) costs and debt servicing during the operating period.

B. Project Cost Estimation, Financing Plan and Loan Repayment Schedule

3. The Project capital cost estimation and financing plan initially prepared by the design institute have been reviewed in accordance with the Technical Note on Preparation and Presentation of Cost Estimates for Projects Financed by the Asian Development Bank (2008). The current official exchange rate applied is USD1.0 = CNY6.2. For inflation forecasting for the foreign currency costs of the Project the Manufacture's Unit Value (MUV) index as per the World Bank projections is used, which are 1.0% for 2015 and 1.4% for 2016 and 2017 and 1.5% for 2018 and 2019. The China’s domestic inflation rates are referred to the ADB projections, which are 3.0% for 2015 and the succeeding years. The physical contingencies are calculated at 8% of the basic costs.

4. The potential ADB loan will have a total duration of 25 years including a grace period of 5 years. The interest expenses for the loan during construction are determined in accordance with the LIBOR-based 5-year fixed swap rate (1.696% as of July 2014), plus a fixed effective contractual spread of 0.50% and a maturity premium of 0.10%. For the sake of conservativeness, the rebate on funding cost margin has been ignored. A 0.15% commitment charge is to be incurred on the undisbursed balance of loan on a yearly basis.

5. The ADB loan is expected to be USD150 million including financing charges during

implementation. The loan has been allocated by TPG to the four Project areas as following:

$110 million to Tacheng City, $15 million to E’min County, $15 million to Tuoli County and $10

million to Yumin County. The four local governments will contribute their own counterpart funds

as following: CNY652.61 million from Tacheng City, CNY119.41 million from E’min County,

CNY56.51 million from Tuoli County and CNY43.76 million from Yumin County. The total capital

cost is estimated to be USD290.69 million, or CNY1,802.29 million equivalent. The distribution

proportions of the capital costs over the five implementation years are assumed to be 15%, 20%,

30%, 25% and 10%.

Formatted: Space After: 0.5 line


4

6. The schedule of loan principal repayment over 20 years after the grace period is

prepared with the straight-line repayment method that calculates an equal annual repayment

amount by dividing the total loan principal by the number of repayment years. The annual loan

principal repayment amount will be USD7.5 million in total by TPG, including USD5.5 million

from Tacheng City, USD0.75 million from E’min County, USD0.75 million from Tuoli County and

USD0.5 million from Yumin County. The interests during operation, charged on the outstanding

loan principal, are determined with the LIBOR-based 10-year fixed swap rate (2.613% as of July

2014), also plus a fixed spread of 0.50% and a maturity premium of 0.10%, where the rebate on

funding cost margin is ignored. Table 1 – Table 4 below demonstrate the data on capital costs,

financing sources and loan repayment schedule. A-1 – A-3 in Annex A are detailed information

about cost components and financial items.

Table 1: Project Investment Plan

(USD million)

Item Amount

A. Base Cost a

Tacheng City 185.63

E'min County 29.78

Tuoli County 20.52

Yumin County 14.53

capacity development 2.00

Subtotal (A) 252.46

B. Contingencies

Physical Contingency b 15.37

Price Contingency c 13.53

Subtotal (B) 28.90

C. Financial Charges During Implementationd

Interest During Implementation 8.78

Commitment Charge 0.55

Subtotal (C) 9.33

Total (A+B+C)e 290.69 a At July 2014 price level.

b Computed at 8% base costs.

c Computed at 1.0%(2015),1.4% (2016, 2017) and 1.5%(2018,2019) on foreign exchange costs and

3.0% (whole implementation period) on local currency costs.

d Includes interest during construction and commitment charges. Interest during

construction has been computed at the LIBOR-based 5-year fixed swap rate plus a spread of 0.5%

and maturity premium of 0.10%. e Includes taxes and duties of CNY65.48 mil.

Table 2: Financing Plan

(USD million)

Source Amount %


5

Asian Development Bank 150.00 51.60

Local Governments 140.69 48.40

Tacheng Municipal Government 105.26 36.21

E'min County Government 19.26 6.63

Tuoli County Government 9.11 3.14

Yumin County Government 7.06 2.43

Total 290.69 100.00

Table 3: ADB Loan Distribution

(USD million)

Year 2015 2016 2017 2018 2019

1. Principal at beginning - 22.50 52.50 97.50 135.00

2. New borrowing 22.03 28.97 43.17 34.78 11.72

3. IDC payable 0.26 0.86 1.72 2.67 3.27

4. Commitment charge 0.21 0.17 0.11 0.05 0.01

5. Principal at end 22.50 52.50 97.50 135.00 150.00


6

Table 4: ADB Loan Repayment Schedule

(USD million)

Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

1. Principal at beginning 150.00 142.50 135.00 127.50 120.00 112.50 105.00 97.50 90.00 82.50

2. Principal payable 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50

3. Interest payable 4.58 4.35 4.11 3.88 3.65 3.41 3.18 2.95 2.71 2.48

4. Principal at end 142.50 135.00 127.50 120.00 112.50 105.00 97.50 90.00 82.50 75.00

Year 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

1. Principal at beginning 75.00 67.50 60.00 52.50 45.00 37.50 30.00 22.50 15.00 7.50

2. Principal payable 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50

3. Interest payable 2.25 2.01 1.78 1.55 1.31 1.08 0.85 0.61 0.38 0.15

4. Principal at end 67.50 60.00 52.50 45.00 37.50 30.00 22.50 15.00 7.50 (0.00)


7

C. Government’s Fiscal Capacity and Solvency Assessment

7. A detailed review of the annual fiscal reports including income and expenditure statements of TPG and the four city/county governments over the last 5 years (2009–2013) was undertaken to evaluate their historical financial performances, the income and expenditure structures, the main income drivers, the ability to finance public facilities and in particular the status of government solvency.

8. The fiscal incomes come from three basic sources: (1) general budget incomes, including various taxations and non-tax incomes such as fees, confiscations, incomes from transferring state-owned asset usage rights and so on; (2) government fund incomes, including the money collected for development of education, cultural facilities, unemployment reservation, housing fund, construction of public utilities, improvement of agriculture infrastructure, etc.; (3) fiscal transfer and financial aid from upper level governments or twin counterpart province, referring to the special purpose funds distributed from the central government and XYAR government as well as the annual aid from Liaoning Province.

9. The fiscal expenditure is utilized in two areas: (1) general budget expenditure, including spending in public services and security, education, science and culture, social safety and health care, agriculture, forestry and water conservancy, indemnificatory housing, transport facilities and so on; (2) government fund expenditure, those earmarked by the government fund incomes.

10. Based on the generally accepted criteria employed by the World Bank, the counterpart contributions are considered to be affordable by the government if the required annual amount does not exceed 15%–20% of the projected annual capital construction budget. Since the actual budget items in the project areas are categorized based on the purposes of expenditure rather than on the ways of spending, it is uneasy to identify the construction amounts from the settled annual budget. Alternatively, the project’s annual counterpart funding is compared with government’s overall annual expenditure and also as a share of infrastructure projects that are funded by the government. In the case of debt service, the general acceptance is that debt service payments associated with a project will not cause concern if they do not exceed 2.5% of the fiscal income of the year or 1.0% of the overall government spending.

1) Historical Fiscal Incomes and Expenditures

11. From 2009 to 2013 the fiscal incomes of TPG as a whole increased from CNY1.37 billion to CNY4.25 billion at a compound annual growth rate (CAGR) of 30.5%. This was a significant achievement considering the overall fiscal incomes of China during the same period increased by 17.2%. The fastest growth happened to the general budget income which came basically from taxation, meaning a considerable increase in enterprises’ and people’s net incomes. It is worth to notice that in the fiscal income structure two thirds (66.85%) derived from the fiscal transfers by the central government or financial aid provided by the twin counterpart province. This implies a great supports to XUAR from the other areas of the country, especially the central government and eastern regions. The fiscal expenditure of TPG has also increased at an over 30% CAGR. Table 5 demonstrates the fiscal status of TPG over the last 5 years.

Table 5: Historical Incomes and Expenditures for TPG (CNY, Million)

Item 2009 2010 2011 2012 2013 % CAGR

Incomes

1.General budget income 1,368.75 1,833.66 2,579.36 3,204.35 4,254.79 25.55 32.78%

2.Fund income 330.51 303.76 680.56 714.53 923.92 5.55 29.30%

3.The balance of Last Year 331.96 434.71 412.61 340.22 343.02 2.06 0.82%

4.External financial Aid 3,714.96 5,072.90 6,591.15 8,461.94 11,133.76 66.85 31.57%

Total 5,746.18 7,645.03 10,263.68 12,721.04 16,655.49 100.00 30.48%



8

Expenditures

1.General budget expenditures 4,894.70 6,851.69 8,993.82 11,225.64 14,803.79 93.31 31.87%

2.Fund expenditures 398.16 623.96 809.69 830.35 1,060.87 6.69 27.76%

Total 5,292.86 7,475.65 9,803.51 12,055.99 15,864.66 100.00 31.58%

Source: TPG Finance Bureau

12. The historical fiscal incomes and expenditures of Tacheng City and E’min, Tuoli and

Yumin Counties have also been reviewed. The fiscal incomes in Tacheng City increased by 30%

of CAGR and the expenditure increased by 29% during 2009-2013. The external fiscal transfer

accounted for nearly 70% of the incomes. In E’min County the fiscal incomes increased by 32%

and the expenditures increased by 33% during the same period. The external transfer took

about 80% in the total incomes. The government incomes in Tuoli County increased by 50% and

the expenditure increased by 52%. This was the highest growth rate among all the project areas.

Its external fiscal transfer was as much as 78% of the total incomes. Yumin County had a CAGR

of 36% for both fiscal incomes and expenditures in the last 5 years, but it had 90% external

transfer in the total incomes, the highest portion among the four project areas. Table B-1 – B-4 in

Annex B illustrate the historical fiscal situations of the four local governments.

2) Fiscal Capacity Projections and Analysis

13. In 2009-2014 China’s GDP (Gross Domestic Products) grew at 9.2%, 10.4%, 10.3%, 7.7%

and 7.7% respectively, while during the same period the growth rate of XUAR’s GDP was

8.1%, 10.6%, 12.0%, 12.0% and 11.2%, about 2-3 percentage points higher than the country’s

average. The GDP growth rate in Tacheng Prefecture was about 3-4 percentage points higher

than that of XUAR. The historical fiscal incomes and expenditures of Tacheng City and E’min,

Tuoli and Yumin Counties grew even faster at an annual rate of 30% or above. However, as

China’s overall economy has passed the rapid growth phase and entered into a period of mild

development, such a growth pattern in Tacheng Prefecture cannot remain for long.

14. If the country’s GDP average growth is estimated at 7% over the next 5-10 years,

XUAR’s growth may be at 9% and Tacheng Prefecture’s GDP could increase by 11-12% yearly.

As a result, it is expected that TPG’s fiscal incomes would increase by 25% in 2014-2016, by 20%

in 2017-2020 and by 15% thereafter, provided the government’s treasury structures stay

unchanged. The key precondition for intensified fiscal capacity in future is that the fiscal transfer

and financial aid from outside will maintain the current momentum. Such a forecast is deemed

reasonable and conservative, since the central government has made long-term commitment

from political and strategic perspectives to supporting the social and economic development in

XUAR, and TPG is in the frontier for consolidating the ties between China and the Central Asia

countries.

15. The fiscal sustainability analysis involves comparing the estimated counterpart funds

with the projected fiscal incomes during the implementation period, and comparing the O&M and

debt service with the projected fiscal expenditures during the operation period. Table 6 shows

the overall fiscal availability of TPG to the ADB-funded Project. The share of counterpart fund in

the annual fiscal income will be 0.67% at most in the construction period of 2015-2019. The loan

principal and interest repayment combined with annual recurrent O&M cost will be as much as



9

0.20% of the fiscal expenditure in the first operation year and will decrease gradually over the

following years along with the reduction of interest payments. It signifies a relatively strong

sustainability of TPG and a general confidence in the financial sources from the Chinese side for

the Project.

Table 6: Fiscal Projection for TPG (CNY, Million)

Item 2014 2015 2016 2017 2018 2019 2020 2021 2022

Incomes 20,819.36 26,024.20 32,530.25 39,036.30 46,843.56 56,212.28 67,454.73 77,572.94 89,208.88

Expenditures 19,830.82 24,788.53 30,985.66 37,182.79 44,619.35 53,543.21 64,251.86 73,889.64 84,973.08

Counterpart fund 130.84 174.46 261.69 218.07 87.23

Counterpart fund as % of income 0.50% 0.54% 0.67% 0.47% 0.16%

Debt service and O&M 130.45 130.58 129.08

Debt service and O&M as % of

expenditure 0.20% 0.18% 0.15%

16. For Tacheng City the counterpart fund will account for 4% at most in the city’s annual

fiscal income. The spending on debt service and O&M will be 1.22% of the fiscal expenditure in

the first operation year, which is moderately over the World Bank’s project sustainability

benchmark. Even though the 1.0% threshold is just an early warning line rather than a risky line,

attention shall be paid to careful arrangement of the funds in the light of a cautious project

financing plan and loan repayment schedule. A more relaxing fiscal status is envisaged for E’min,

Tuoli and Yumin Counties, where the highest percentage of counterpart fund against the annual

fiscal income during project implementation will be 0.73%, 0.36% and 0.44%, and the highest

share of debt service plus O&M in the annual fiscal expenditure will be 0.17%, 0.15% and

0.16%.

17. The analysis illustrates that based on the assumed growth rates and financial sources

identified during project preparation, including normal budgets, special funds incomes,

subsidies, fiscal transfer and allocations, TPG as a whole and the three county governments are

expected to possess sufficient counterpart funds for project implementation, namely, physical

construction, facility maintenance and loan repayment. Tacheng City may feel some sort of

pressure in the first few years of project implementation and at the early stage of facility

operations. However, it is believed that TPG will grant full support to Tacheng City in case of

temporary financing shortage. The projected fiscal sustainability of the four local governments is

shown in Table B-5 – B-8 of Annex B.

18. The counterpart funding for the Project construction, the financial sources for ADB loan repayment and for maintenance of the facilities after project completion, will come from three government income channels: (1) the city construction and maintenance fee of the corresponding year; (2) the land right transfer fee of the year; (3) other sources listed in the year’s fiscal budget. These other sources may include the annual financial aid provided by Liaoning Province, the twin counterpart of Tacheng Prefecture Government (TPG). Such a financial aid is estimated to be CNY540 million in 2014 and is expected to grow at an annual rate of 25% over the next few years.

19. Basically the counterpart funding will be assured by the local governments since this first ADB-financed project in Tacheng Prefecture has been highly prioritized on the governments’



10

agenda. TPG and the four related city/county governments have committed to counterpart fund provision and loan repayments. The XUAG finance bureau will provide guarantee to Ministry of Finance (MOF) for loan repayment. The TPG finance bureau and city/county finance bureaus would follow up with counter guarantees successively one after another.

D. Financial Viability Assessment for Revenue-Generating Components

20. The Project contains water supply pipelines, waste water discharge pipelines and district

heating supply network in Tacheng City and water and waste water pipelines in E’min County.

These components, after completed, will be transferred to the city/county’s relevant utility

operators and the costs incurred will be incorporated into the operators’ total cost structures

which are the bases for determining the utilities’ tariffs. The Consultant has studied the current

water tariff and heat tariff status, reviewed the water tariff reform proposal, and analysed

potential impacts of the subprojects on the overall tariffs. To these revenue-generating

components financial return analysis has been adopted using a sharing methodology that

allocates a small portion from the relevant tariff and overall cost to the sub-project based on the

actual public utility operation in each sub-project area.

1) Tariff Review and Analysis

21. The water tariff covers the cost for water treatment plants and the cost for water supply

pipeline networks in the region. The average water tariff CNY1.53/m3 in Tacheng City, including

CNY1.10/m3 for households, was determined in 2003. In 2012 the average water supply cost

was CNY1.98/m3 already, which brought about large quantity of government subsidy. A water

tariff reform plan was proposed for Tacheng City in later 2013 and subject to final approval by

TPG before being executed in 2014 or 2015. The new tariff, making the water supply cost

break-even, will also be the step-1 tariff of a potential stepped water tariff system. Whereas the

step-1 tariff is aimed to cover 80-90% of household users, a step-2 water tariff will be 1.5 times

the step-1 tariff and expected to be established after 2015.

22. According to the water tariff reform proposal for Tacheng City the water tariff for

households will be raised from the current CNY1.10/m3 to CNY1.70/m3; the tariff for public sector

organizations raised from CNY1.87/m3 to CNY2.50/m3; the tariff for industrial and commercial

users increased from CNY2.30/m3 to CNY3.00/m3; and the tariff for urban afforestation

increased from CNY0.50/m3 to CNY0.80/m3. Based on the estimated water consumption volume,

calculated by deducting 12% water leakage from the average water supply volume during

2010-2012, the tariff reform proposal recommends that the average water tariff be lifted up to

CNY2.11/m3, increased by 36.55%. This will delete the government subsidy to water usage in a

general manner. After completion of the tariff reform the water spending by each household

member each month will be increased by CNY1.30. But the current tariff CNY1.10/m3 will still be

applied to the low-income families.

23. A tariff reform proposal was formulated for E’min County as well, since its current

average water tariff CNY1.41/m3 was set up in 2002 and the average water supply cost in 2012

was CNY2.00/m3. The proposal will raise the water tariff for households from CNY1.10/m3 to

CNY1.70/m3; the tariff for public sector organizations from CNY1.50/m3 to CNY2.40/m3; the tariff

for industrial and commercial users from CNY2.00/m3 to CNY2.80/m3; and the tariff for urban

afforestation from CNY0.80/m3 to CNY1.00/m3. The waste water treatment charge is to be

Formatted: Space After: 0.5 line, Don't adjust

space between Latin and Asian text


11

raised from CNY0.35/m3 to CNY0.50/m3, where the waste water volume was computed as 80%

the water supply volume. The average water tariff will reach CNY2.14/m3, increased by 50.59%,

which will also delete the government subsidy to water consumption.

24. An analysis on water tariff affordability of households was carried out by measuring the

share of water cost in the household’ total disposable income. According to the World Bank’s

criterion it is considered affordable for an ordinary household in developing countries if the water

expenditure occupies 3-5% in the family’s disposable income. A study conducted by the Ministry

of Housing and Urban-Rural Development of PRC has indicated that a 2.5-3% share would be

appropriate in China.

25. The average household disposable income per capita in Tacheng City and E’min County

was CNY17,756 in 2013. Assuming 5 people per family on average and 200 liters of water

consumed per person per day, the daily water consumption by a family would be 1,000 litres

(200 litres x 5 persons) or 1 m3 and the yearly water consumption cost for a family would be

CNY620.50 (1 m3/d x CNY1.70/m3 x 365 days). The waste water treatment charge for a family

would be CNY146 (80% x 1 m3/d x CNY0.50/m3 x 365 days). Therefore, the yearly total water

expenditure of a family is CNY766.50. The average household disposable income is currently

CNY88,780 (CNY17,756 x 5 persons) a year. As a result, the share of water expense in the

household disposable income will be 0.86% after the tariff reform is realized eventually. This is

well within the envisaged comfortable zone for water cost affordability.

26. Promulgated in 2012, the current heat tariff in Tacheng City is CNY22.275/m2 for the

whole heating period or around 180 days a year. There is no plan to adjust the heat tariff in the

near future because the price of coal used for electricity production and heat generation is

strictly constrained in XUAR, whereas in the eastern regions of the country the market force

plays a dominant role in coal price setting.

2) Financial Analysis for Revenue-Generating Components

27. For financial analysis of the revenue-generating sub-projects a 20-year operation period is assumed. The value of civil works is depreciated for 20 years, while the value of equipment is depreciated for 15 years. The income tax rate is 25% on the pre-tax operating profit. The after-tax cost of equity is assumed to be 8% as usually applied to water supply projects. After-tax nominal cost for the debt is calculated by subtracting the income tax factor because of the tax deductibility for financial expenses. In order to estimate the cost of capital in real term the inflation element is also excluded. As a result, the weighted average cost of capital (WACC) is computed to be 2.8%. Table 7 gives the WACC calculation.

Table 7: WACC for Overall Tacheng Project

A. Financial component ADB Loan Equity Total

B. Amount (USD million) 150.0 140.7 290.7

C. Weighting 51.6% 48.4% 100.0%

D. Nominal cost 3.2% 8.0%

E. Income tax rate 25.0% 0.0%

F. Tax-adjusted nominal cost [D x (1 - E)] 2.4% 8.0%

G. Inflation rate 1.5% 3.0%

H. Real cost [(1+F) / (1+G) - 1] 0.9% 4.9%

I. Weighted component of WACC 0.5% 2.3%






12

Weighted average cost of capital 2.8%

28. The water supply sub-projects in Tacheng City and E’min County are financially analysed through proportionally allocating part of the expected water tariff and part of the overall water supply cost in the area to those sub-projects. Out of the expected water tariff CNY2.11/m3 to be utilized in Tacheng City after the tariff reform, CNY0.58/m3 is allocated to the water supply sub-project with capacity of 33,500 m3 a day. The water supply sub-project in E’min County with capacity of 8,500 m3 a day is allocated with CNY0.35/m3 from the expected water tariff. The water supply entities are charged with 3% water resources fee on its revenue. Incorporated with the capital and operating costs, the financial internal rate of return (FIRR) for the two sub-projects are 6.01% and 4.85% respectively, which are well above the WACC. The results of sensitivity study are shown in Table 8 and Table 9. A 10% plus/minus change to either the capital costs or the revenues does not turn the sub-projects into a negative territory. The sales revenue tends to be more sensitive than the capital cost.

Table 8: Sensitivity of Water Supply in Tacheng City

Item Base Case Capital Cost Revenue

10% -10% 10% -10%

FIRR % 6.01 4.89 7.33 7.45 4.50

Change to Base Case % 0.00 -18.64 21.96 23.96 -25.12

Table 9: Sensitivity of Waste Water in Tacheng City


10% -10% 10% -10%

FIRR % 4.85 3.78 6.08 6.26 3.35


29. The waste water treatment sub-projects in Tacheng City and E’min County are both

allocated with CNY0.30/m3 from CNY0.80/m3 of their own waste water treatment charge. Based

on the daily drainage volume of 58,200 m3 and 9,500 m3 respectively and combined with the

estimated capital and operating costs, the FIRR of the two sub-projects are 5.56% and 5.01%

which are higher than the WACC. Table 10 and Table 11 illustrate that the sub-projects are

basically risk-resistant when the capital cost and revenue change within a range of 10%.

Table 10: Sensitivity of Water Supply in E'min County


10% -10% 10% -10%

FIRR % 5.56 4.46 6.85 6.90 4.15


Table 11: Sensitivity of Waste Water in E'min County

Item Base

Case

Capital Cost Revenue

10% -10% 10% -10%









13

FIRR % 5.01 3.94 6.26 6.21 3.76


30. The central heating sub-project including several heat exchange stations will be

connected after completion with the existing heating pipeline network in Tacheng City by the

Tacheng heat supplying entity, who buys heat from the heat generators and sells it to end-users.

The financial analysis of the sub-project is carried out from the standpoint of the heat supplying

entity and on the basis of the combined existing and newly built heat distributing assets. The

heat purchasing cost is CNY14.36/GJ and the heat selling price is CNY22.275/GJ. The entity

incurs operating costs for electricity, water, coal, labour, maintenance, administration and so on

apart from the heat purchasing cost. The FIRR is calculated to be 8.46%. The result from

sensitivity analysis is demonstrated in Table 12. The sub-project is considered fairly safe in

terms of financial risk. The operating cost proves to be the most sensitive factor as it accounts

for over 80% in the total production cost and the heat purchasing cost takes nearly 60% in the

operating cost. The capital cost ranks the least sensitive.

Table 12: Sensitivity of Heat Supply in Tacheng City

Item Base

Case Capital Cost Revenue

Operating

Cost

10% -10% 10% -10% 10% -10%

FIRR % 8.46 7.89 9.07 12.18 4.59 3.88 12.92

Change to Base

Case % 0.00 -6.74 7.21 43.97 -45.74 -54.14 52.72



14

Annex A: Data on Capital Costs and Financing Plan

A-1: Detailed Cost Estimates by Components

No. Item

USD Million

Total

Cost

Tacheng City E'min County Tuoli County Yumin County

Amount % of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category

A. Investment Cost

1 Civil Works 155.42 110.30 70.97% 18.96 12.20% 15.56 10.01% 10.60 6.82%

2 Equipment 22.60 18.86 83.46% 0.32 1.44% 1.87 8.28% 1.54 6.83%

3 Land Acquisition, Compensation and Resettlement 59.86 47.04 78.59% 9.02 15.06% 2.23 3.73% 1.57 2.62%

4 Environmental Protection 1.02 0.47 45.72% 0.27 25.96% 0.12 11.88% 0.17 16.44%

5 Water and Soil Protection 0.82 0.70 86.27% 0.11 13.73% 0.00 0.00% 0.00 0.00%

6 Project Management 7.44 5.78 77.79% 0.77 10.38% 0.43 5.74% 0.45 6.09%

7 Survey and Design 3.30 2.47 74.67% 0.33 9.89% 0.31 9.43% 0.20 6.01%

8 Consulting Services Strengthen institutional and staff capacity 2.00 1.47 73.33% 0.20 10.00% 0.20 10.00% 0.13 6.67%

Sub-total (A) 252.46 187.09 74.11% 29.98 11.88% 20.72 8.21% 14.66 5.81%

B. Contingencies

1. Physical 15.37 11.20 72.88% 1.68 10.91% 1.44 9.40% 1.05 6.81%

2. Price 13.53 10.12 74.78% 1.67 12.32% 1.02 7.51% 0.73 5.39%

Sub-total (B) 28.90 21.32 73.77% 3.34 11.57% 2.46 8.52% 1.78 6.15%

C. Financing Charges During Implementation

1. Interest during construction 8.78 6.44 73.33% 0.88 10.00% 0.88 10.00% 0.59 6.67%


15

2. Commitment charges 0.55 0.40 73.33% 0.06 10.00% 0.06 10.00% 0.04 6.67%

Sub-total (C) 9.33 6.84 73.33% 0.93 10.00% 0.93 10.00% 0.62 6.67%

Total Project Cost (A+B+C) 290.69 215.26 74.05% 34.26 11.79% 24.11 8.30% 17.06 5.87%

% of Total Project Cost 100.00% 74.05% 11.79% 8.30% 5.87%

A-2: Expenditure Accounts by Fianancier

(USD million)

Item

ADB

Tacheng

Prefecture

Government

E'min County

Government

Tuoli County

Government

Yumin County

Government TOTAL

Amount % Amount % Amount % Amount % Amount % Amount

% of

Total

Cost

A Base Costs

1 Civil Works 116.07 74.68% 27.48 17.68% 5.42 3.49% 3.56 2.29% 2.90 1.86% 155.42 53.47%

Civil Works for Tacheng 82.83 75.09% 27.48 24.91% 110.30 37.94%

Civil Works for E'min 13.54 71.41% 5.42 28.59% 18.96 6.52%

Civil Works for Tuoli 12.00 77.12% 3.56 2.29% 15.56 5.35%

Civil Works for Yumin 7.70 72.67% 2.90 27.33% 10.60 3.65%

2 Equipment 22.60 100.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 22.60 7.77%

3 Land Acquisition, Compensation and Resettlement 0.00 0.00% 47.04 78.59% 9.02 15.06% 2.23 3.73% 1.57 2.62% 59.86 20.59%

4 Environmental Protection 0.00 0.00% 0.47 45.72% 0.27 25.96% 0.12 11.88% 0.17 16.44% 1.02 0.35%

5 Water and Soil Protection 0.00 0.00% 0.70 86.27% 0.11 13.73% 0.00 0.00% 0.00 0.00% 0.82 0.28%

6 Project Management 0.00 0.00% 5.78 77.79% 0.77 10.38% 0.43 5.74% 0.45 6.09% 7.44 2.56%

7 Survey and Design 0.00 0.00% 2.47 74.67% 0.33 9.89% 0.31 9.43% 0.20 6.01% 3.30 1.14%


16

8 Consulting Services Strengthen institutional and staff capacity 2.00 100.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 2.00 0.69%

Subtotal (A1) 140.67 55.72% 83.94 33.25% 15.91 6.30% 6.65 2.64% 5.28 2.09% 252.46 86.85%

B Contingencies

Physical Contingency 0.00 0.00% 11.20 72.88% 1.68 10.91% 1.44 9.40% 1.05 6.81% 15.37 5.29%

Price Contingency 0.00 0.00% 10.12 74.78% 1.67 12.32% 1.02 7.51% 0.73 5.39% 13.53 4.65%

Total Contingencies (B) 0.00 21.32 73.77% 3.34 11.57% 2.46 8.52% 1.78 6.15% 28.90 9.94%

C Financial Charges During Implementation

Interest During Implementation 8.78 100.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 8.78 3.02%

Commitment Charge 0.55 100.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.55 0.19%

Financial Charges (C) 9.33 100.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 9.33 3.21%

TOTAL PROJECT COSTS (A+B+C) 150.00 51.60% 105.26 36.21% 19.26 6.63% 9.11 3.14% 7.06 2.43% 290.69 100.00%

A-3: Expenditure Accounts by Year

(USD million)

2015 2016 2017 2018 2019 Total

A Base Costs

Investment Costs

1 Civil Works 23.31 31.08 46.63 38.85 15.54 155.42

2 Equipment 3.39 4.52 6.78 5.65 2.26 22.60

3 Land Acquisition, Compensation and Resettlement 8.98 11.97 17.96 14.96 5.99 59.86

4 Environmental Protection 0.15 0.20 0.31 0.26 0.10 1.02

5 Water and Soil Protection 0.12 0.16 0.25 0.20 0.08 0.82

6 Project Management 1.12 1.49 2.23 1.86 0.74 7.44

7 Survey and Design 0.50 0.66 0.99 0.83 0.33 3.30

8 Consulting Services Strengthen institutional and staff capacity 0.30 0.40 0.60 0.50 0.20 2.00

Subtotal (A) 37.87 50.49 75.74 63.11 25.25 252.46


17

B Contingencies

Physical Contingency 2.31 3.07 4.61 3.84 1.54 15.37

Price Contingency 0.37 1.55 4.23 4.84 2.54 13.53

Total Contingencies (B) 2.67 4.62 8.85 8.68 4.08 28.90

C Financial Charges During Implementation 0.00 0.00 0.00 0.00 0.00 0.00

Interest During Implementation 0.26 0.86 1.72 2.67 3.27 8.78

Commitment Charge 0.21 0.17 0.11 0.05 0.01 0.55

Financial Charges (C) 0.47 1.03 1.83 2.72 3.28 9.33

TOTAL PROJECT COSTS (A+B+C) 41.01 56.14 86.42 74.51 32.61 290.69


18

Annex B: Data on Fiscal Status of Four Local Governments

B-1: Historical Incomes and Expenditures for Tacheng City (CNY, million)

Item 2009 2010 2011 2012 2013 % CAGR

Incomes

1.General budget income 134.48 171.22 271.86 294.07 381.69 18.30 30%

2.Fund income 28.14 56.01 99.75 111.96 177.41 8.51 58%

3.The balance of Last Year 27.76 28.19 47.36 62.31 81.58 3.91 31%

4.External financial Aid 538.56 723.46 914.54 1,128.82 1,444.62 69.28 28%

Total 728.94 978.88 1,333.51 1,597.16 2,085.31 100.00 30%

Expenditures

1.General budget expenditures 663.72 884.79 1,162.40 1,404.61 1,803.35 92.77 28%

2.Fund expenditures 35.16 44.36 101.43 99.35 140.46 7.23 41%

Total 698.88 929.15 1,263.83 1,503.96 1,943.80 100.00 29%

Source: Tacheng City Finance Bureau

B-2: Historical Incomes and Expenditures for E'min County (CNY, million)

Item 2009 2010 2011 2012 2013 % CAGR

Incomes


2.Fund income 25.66 38.12 46.44 60.65 80.79 3.87 33%

3.The balance of Last Year 40.62 0.00 34.86 9.83 6.13 0.29 -38%

4.External financial Aid 511.23 0.00 1,212.52 1,245.09 1,675.18 80.17 35%

Total 678.10 169.51 1,467.17 1,559.29 2,089.44 100.00 32%

Expenditures

1.General budget expenditures 630.77 897.53 1,173.88 1,473.33 1,954.83 94.84 33%


Total 657.22 952.16 1,244.55 1,548.39 2,061.10 100.00 33%

Source: E'min County Finance Bureau

B-3: Historical Incomes and Expenditures for Tuoli County (CNY, million)

Item 2009 2010 2011 2012 2013 % CAGR

Incomes


2.Fund income 6.72 9.03 28.07 40.07 66.80 3.31 67%


4.External financial Aid 0.00 582.06 697.34 1,046.91 1,563.43 77.52 51%

Total 102.23 801.48 984.54 1,343.68 2,016.91 100.00 50%

Expenditures


19

1.General budget expenditures 501.44 730.90 940.02 1,268.17 1,903.80 96.19 51%


Total 512.47 740.49 971.33 1,315.43 1,979.29 100.00 52%

Source: Tuoli County Finance Bureau

B-4: Historical Incomes and Expenditures for Yumin County (CNY, million)

Item 2009 2010 2011 2012 2013 % CAGR

Incomes


2.Fund income 19.75 22.38 30.96 40.31 51.13 4.02 27%


4.External financial Aid 322.87 558.95 608.35 837.17 1,150.12 90.39 37%

Total 371.49 614.60 687.19 933.76 1,272.44 100.00 36%

Expenditures

1.General budget expenditures 339.38 573.68 641.59 870.44 1,191.49 94.57 37%


Total 364.28 602.18 674.86 923.58 1,259.90 100.00 36%

Source: Yumin County Finance Bureau

B-5: Fiscal Projection for Tacheng City (CNY, Million)

Item 2014 2015 2016 2017 2018 2019 2020 2021 2022

Incomes 2,606.64 3,258.30 4,072.87 4,887.45 5,864.94 7,037.92 8,445.51 9,712.34 11,169.19

Expenditures 2,429.75 3,037.19 3,796.49 4,555.79 5,466.95 6,560.34 7,872.40 9,053.26 10,411.25


Counterpart

fund as % of

income 3.00% 3.20% 4.01% 2.78% 0.93%

Debt service and

O&M 96.05 96.16 95.06

Debt service

and O&M as %

of expenditure 1.22% 1.06% 0.91%

B-6: Fiscal Projection for E'min County (CNY, Million)

Item 2014 2015 2016 2017 2018 2019 2020 2021 2022

Incomes 2,611.80 3,264.75 4,080.94 4,897.13 5,876.55 7,051.86 8,462.24 9,731.57 11,191.31

Expenditures 2,576.38 3,220.47 4,025.59 4,830.71 5,796.85 6,956.22 8,347.46 9,599.58 11,039.52

Counterpart

fund 17.91 23.88 35.82 29.85 11.94

Counterpart

fund as % of 0.55% 0.59% 0.73% 0.51% 0.17%


20

income

Debt service

and O&M 14.01 14.05 13.90

Debt service

and O&M as %


B-7: Fiscal Projection for Tuoli County (CNY, Million)

Item 2014 2015 2016 2017 2018 2019 2020 2021 2022

Incomes 2,521.13 3,151.41 3,939.27 4,727.12 5,672.55 6,807.05 8,168.47 9,393.74 10,802.80

Expenditures 2,474.12 3,092.65 3,865.81 4,638.97 5,566.76 6,680.12 8,016.14 9,218.56 10,601.34

Counterpart

fund 8.44 11.25 16.88 14.07 5.63

Counterpart

fund as % of

income 0.27% 0.29% 0.36% 0.25% 0.08%

Debt service

and O&M 12.12 12.10 11.95

Debt service

and O&M as %


B-8: Fiscal Projection for Yumin County (CNY, Million)

Item 2014 2015 2016 2017 2018 2019 2020 2021 2022

Incomes 1,590.55 1,988.18 2,485.23 2,982.28 3,578.73 4,294.48 5,153.37 5,926.38 6,815.34

Expenditures 1,574.88 1,968.60 2,460.75 2,952.90 3,543.48 4,252.18 5,102.61 5,868.01 6,748.21


Counterpart

fund as % of

income 0.33% 0.35% 0.44% 0.31% 0.10%

Debt service and

O&M 8.26 8.26 8.16

Debt service

and O&M as %




Economic Analysis

Project Number: 46063/ TA 8363 - PRC November 2014

Xinjiang Tacheng Border Cities and Counties Development Project


App 10 - 1

ECONOMIC ANALYSIS

A. Introduction

1. The central government of PRC is accelerating the development of small- and medium-sized cities. Small and medium-sized cities contributed to 56.22 percent of the country's overall economy in 2012, with a combined GDP of CNY 26.51 trillion. China’s urbanization rate reaches 52.57% by the end of 2012, measured by the urban population, up 1.3% from a year earlier1. Urbanization is thought a key for China’s modernization. By clustering the production and innovation capacities in the cities, economies of scale can achieve. However, incomplete urbanization will not only impede its growth, but also become a source of widened income inequality and consequent social tension and instability. Adequate infrastructure would help to mitigate the negative impact of rapid urbanization in medium-sized cities. This is because adequate infrastructure will ensure that local or migrant workers can get easier access to better public transportation system, sanitation water supply, public services, affordable housing and education as urban residents. These benefits can eventually yield better employment opportunities for the vulnerable groups at a lower cost. 2. Tacheng city was confirmed by the state council as ‘further opening city along the border’ in 1992 and ‘autonomous local reform and opening experimental area’ in 1994 and gained rapid economic growth. The GDP reached CNY6.83 billion in 2013 or 13.2% annual growth rate. Fiscal revenue grew to CNY0.41 billion in 2013 from previous year, or a growth rate of 36.9%. Foreign trade volume in terms of value, realized USD0.27 billion. Disposable income for farmers increased CNY2800 to CNY 13650, and for urban residents, it grew CNY 1850 to CNY 18450, in 2013. During the 12th five year plan period, GDP is expected to grow at 24% annually; and 20% and 16% annually for 2015-2020 and 2020-2030 periods respectively. This implies that the GDP will reach CNY12.19 billion by 2015, 30.03 billion by 2020, and 134.65 billion by 2030. 3. The strategic role of border cities is reflected in the president Xi Jinping’s speech at Nazarbayev University at Kazakhstan on building a new silk road economy. In 2014, the central government released the ‘New Urbanization Plan (2014-2020)’ which specifies Tacheng as one of the 6 national key land border cities to be constructed. Municipal infrastructure and public services investment is crucial to the development of Tacheng according to the plan. 4. However, Tacheng faces urgent needs for investments on its infrastructures currently. The project will build and upgrade the urban infrastructures and municipal service facilities in four city/counties in Tacheng Prefecture, including Tacheng City, and the towns of Emin County, Tuoli County and Yumin County. The proposed project components include building and rehabilitating urban roads and bridges, urban and rural alley rehabilitation, urban water supply piping network, urban drainage piping network, district heating primary piping network and heat exchange stations, MSW management and facilities, municipal service operation and maintenance (O&M) equipment, river rehabilitation and flood control, etc. B. Justification and Demand 5. The project will greatly help these border city and towns to improve their urban infrastructures and municipal services, to meet the increasing urban development and urbanization demands, to facilitate the central government and Xinjiang regional government investment and development for the area, to coordinate with the ongoing border trade facility development program by providing additional infrastructures and equipment to update the existing border trade facilities at Baktu Port, to provide more opportunities for improving the life

1 This rate was 39.09% in 2002.


App 10 - 2

of ethnic minorities, and to improve the environmental and living condition for the urban residents. 6. Xinjiang connects Asia to Europe by land transport and it is an important gateway for trade and economic development since ancient times. This trade route has been developed over thousand years, referred as "Silk Road" historically due to the trade between China and Europe started with silk trading. The trade route has been maintained and developed especially in the recent history. The PRC government has paid special attention to strengthen the trade development along the border. In according to the Xinjiang 12th Five Year Plan2, strengthening the trade corridor development to connect Europe and Asia is one of the major focuses in the plan. Border trade is one of the important trade developments in Xinjiang. In 2012, the border trade amount accounted for about 35% of Xinjiang’s total trade volume. Tacheng has seven border ports with Kazakhstan including Baktu near Tacheng City. It is one of the two border trade routes connected to Europe in Xinjiang. In order to promote the border trade development, the central government has cooperated with the local government to build both expressways and railroad lines from Karamay to Tacheng, and also to upgrade the existing Baktu Port facilities. The proposed project will help the local municipalities improve the urban infrastructures and municipal services at Liaota New district and at Baktu Port to facilitate the trade development. 7. In Tacheng city, many urban residents live in the areas without proper urban infrastructures and municipal services. Many urban alleys are without pavement and they will become difficult to access during the rainy seasons. Many alleys are without street lighting and other fundamental facilities. The proposed project includes a component to improve the existing alleys in the exiting urban areas to provide new pavement, street lighting and other urban facilities in some sections of the city. The component will improve the living condition of the existing urban residents and improve the urban living environment. 8. In comparison to other developed areas, even to the cities in central Xinjiang, Tacheng Prefecture is at a relatively remote and much less developed area. There are significant differences in economic productions and resident incomes between the area and other developed areas. The urban infrastructures and municipal services are out-of-date and require large investment for upgrading. It can be estimated that the urban development and living condition in Tacheng area is about many years lagging behind the more developed area. As more rural people migrating to the cities and the expected fast urban population growth, the existing urban infrastructures and municipal services are in urgent need for upgrading and improvements. Xinjiang is one of the targeted area receiving supports from the more developed areas in coastal and central PRC under the national policies of Western Development Strategy and Supporting Xinjiang Program. The central government has developed many policies and brought in a lot investment to help local urban development and city construction. The proposed project is in line with the PRC policy to support Xinjiang development, helping to improve and upgrade the urban infrastructures and municipal services, and helping reduce the poverty at this remote and less developed area. 9. Over fifty percent of the populations in Xinjiang are ethnic minorities. The living condition for the general population is not as good as those in the more developed areas. Tacheng is located in the relatively remote area and the living conditions are not good in comparison to other cities in Xinjiang and other parts of PRC. The proposed project will bring in direct and indirect benefits to the local population, especially for the ethnic minorities as the ADB safeguard policies to protect and help the ethnic minorities are well prepared and implemented. The direct benefits will involve the employment of the minorities during the construction and business activities caused by the project construction, while the long term benefits will come from the increased economic development resulted from the implementation of the project.

2 XUAR Economic and Social Development 12

th Five Year Plan, January 2011


App 10 - 3

10. To facilitate the urban development, each municipality in the PRC is typically to have a city development master plan as the guidelines the urban development. The master plan outlines the development strategy, spatial layout and structure, control criteria, development targets, etc. Usually the master plan covers development strategy, urban development planning, land use, urban road and bridge, water supply, sanitary sewer, power supply, stormwater drainage, public transport, street lighting, etc. The planning period is usually for 20 years. The approved urban development plan is the official legal document for urban development and the city development shall follow the framework defined in the plan. The necessary adjustment and improvement to the master plan can be considered and accepted if there are strong justifications. The proposed project components are in line with the urban development master plan in each project city, and the proposed construction contents are in compliance of the city master plan. The implementation of the project will help the local government achieve their urban development goals. 11. The existing MSW management system in the PRC is relatively primitive simply with collection, transport and disposal. There are practices in the current MSW handling involved secondary pollution, especially near the MSW collection stations. There are only very limited practices for reduce, reuse and recycle, referred as 3Rs principles. The project will bring in the 3Rs principles to develop the MSW component, develop and implement 2-bin system for MSW sorting and recycling, a direct collect and transport MSW handling procedures to eliminate collection or transfer station to avoid secondary pollution, and help the local governments improve the solid waste management system. 12. The Emin subproject will rehabilitate a section of the existing urban road and build new urban roads in the new urban area. The county is an important production center for the border trade, especially for agricultural production and mining products. The existing urban area needs to be upgrades and the urban area needs to developed to accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization. 13. The Tuoli subproject will build a new outer ring road to accommodate the urban expansion needs. Tuoli is the industrial development center in the prefecture with high growth rate in the last several years. The county is also an important production center for the border trade development for the industrial products of non-ferrous metal. Furthermore, Tuoli is located on the route between Urumqi and Tacheng including Baktu Port, There are many bypass truck traffic going through the town urban area, causing traffic accident. The proposed subproject will build the Outer Ring Road so that the bypass traffic cannot go into the downtown area and it will improve the traffic safety consider significantly. 14. The Yumin subproject will rehabilitate existing urban roads and build new urban roads to accommodate the urban expansion needs. Yumin town is an urban-rural integrated center as the administration, business and production center for the county. Due to lack of investment, the existing urban infrastructures are out-of-date and cannot accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization. The subproject will rehabilitate some existing urban roads and build some new urban roads, and it will help improve the living condition in the urban area and improve the investment environment to increase the town competiveness. 15. The proposed project will also finance a considerable amount of solid waste collection, transport, storage facilities in Tacheng city. Based on the analysis of daily per capita solid waste generation, the FSR projects the annual solid waste output in Tacheng city, which is summarized in the following table.


App 10 - 4

Table 2. Solid waste output in Tacheng (2013-2030)

16. The total MSW amount in China increased from 31.3 million tons in 1980 to 164 million tons in 2011. Currently, waste composition in China is dominated by a high organic and moisture content, since the concentration of kitchen waste in urban solid waste makes up the highest proportion (at approximately 60%) of the waste stream. According to China Statistical Yearbook series, the total amount of MSW collected and transported was 164 million tons in 2011, of which 80% was treated and 76.9% of the treated SW was landfilled, 19.9% was incinerated and 3.3% in other category. 17. The demand for centralized heating in Tacheng is projected based on the projected growth of its population and per capita housing space.

Table 3. Tacheng centralized heating load

Centralized heating load MW

Incremental load

(MW) Current load

(MW) Total (MW)

Short run 2017 225.1 316.3 541.4

Mid-run (2022 344.9 316.3 661.2

Long run 2030 567.5 316.3 883.8

C. Methodology and Assumptions

Year Service

population

Per capita per day weight

(Kg/p.c.d)

Daily Ouput (T/d)

Annual

output 104T/

year

Accumulated

output 104

T/year

2013 50000 1.47 73.50 2.68 2.68

2014 55000 1.46 80.30 2.93 5.61

2015 61700 1.45 89.47 3.27 8.88

2016 66642 1.44 95.96 3.50 12.38

2017 71980 1.43 102.93 3.76 16.14

2018 77746 1.42 110.40 4.03 20.17

2019 83974 1.41 118.40 4.32 24.49

2020 90700 1.40 126.98 4.63 29.12

2021 97965 1.39 136.17 4.97 34.10

2022 105812 1.38 146.02 5.33 39.42

2023 114288 1.37 156.57 5.71 45.14

2024 123442 1.36 167.88 6.13 51.27

2025 133330 1.35 180.00 6.57 57.84

2026 144010 1.34 192.97 7.04 64.88

2027 155546 1.33 206.88 7.55 72.43

2028 168005 1.32 221.77 8.09 80.53

2029 181462 1.31 237.72 8.68 89.20

2030 196000 1.30 254.80 9.30 98.50


App 10 - 5

18. The economic returns are mainly in the form of savings in road-user costs due to the provision of a better road facility. The benefits depend on the future transport demand in the area. The economic analysis applies standard transport model through simulations of the traffic load using existing data for calibration. By modifying the number of trips generated and attracted by each area, it is possible to simulate changes in average daily intensities for each route, both with and without the Project. Three types of benefits are taken into account: those due to changes in the vehicles' operation costs, changes in accidents' costs, and user travel time savings. 19. For road components, the operation costs include: (i) maintenance, repairs and spare parts; (ii) tyres' wear and tear; and (iii) fuel costs. Fuel consumption is calculated as a function of petroleum prices, distances travelled and travelling speed. Average consumption per km at each speed is estimated using national data. Accidents' costs with and without the Project are computed as a function of total travelled distance. Note that theoretically this benefit can be negative in net since although improve road infrastructure reduces the number of accidents which would take place, would increase average driving speeds, thus increases the probability of death in each accident. When converting travel time savings by absolute time values into monetary units, a value for travel time savings needs to be chosen. The detailed road transport model and its assumptions are relegated to the appendix. 20. The economic benefits of water supply pipelines, sewer and stormwater drainage system, as well as centralized heating, are assumed as parts of the total economic benefits of the complete corresponding systems, i.e., for water supply, the proportion of benefit is assumed as project investment against all necessary investments including water treatment facilities and distribution networks. Similar treatment is applied to sewer and storm water drainage pipelines, and centralized heating components. 21. The economic evaluation of the project was carried out by comparing with-project and without-project scenarios. All benefits and costs are in constant 2013 prices. The economic costs of the project components include (i) capital cost, including land acquisition and resettlement, and environmental mitigation and monitoring; and (ii) operation and maintenance costs, including replacement cost of depreciated equipment. Tradable commodities were valued at border prices at the prevailing exchange rate. Non-tradable commodities were valued through shadow prices using a standard conversion factor of 0.987, and specific conversion factors: 1.00 for equipment and civil works, 1.00 for skilled labor, and 0.67 for unskilled labor. A shadow price was used to put an economic value on the wages paid to unskilled labor but not on the wages paid to skilled labor. D. Least-Cost Analysis 22. Least-cost analysis is used for alternative analysis. The FSRs consider different engineering options for all project components. For road networks components, costs of pavement materials between asphalt and cement concrete are compared. As part of the road components, costs of bridge structures between pre-stressed concrete box girder and pre-stressed concrete hollow slab are compared.

Table 4. Costs for road pavement options

Asphalt concrete Cement concrete

Vehicle lane cost

CNY229.5/m2 CNY240/m2

Passenger lane cost

CNY80/m2 CNY80/m2


App 10 - 6

23. Concrete is a long-lasting option, with reduced needs for maintenance and repair as compared to asphalt. It has a smooth and attractive surface, and can showcase precise, fine edges, holds up in most weather conditions and vehicle weights, and is versatile for different usages. However concrete cracks over time, and a topcoat to existing concrete is impossible. Since asphalt entails a lower investment cost and overall maintenance cost, asphalt is chosen as the least cost option.

Table 5. Costs for bridge structure options

Pre-stressed Concrete

Box Girder Bridge Pre-stressed concrete

hollow slab Bridge

Pros and cons

Duration of construction is longer; outlook less

attractive.

Shorter duration of construction; higher

urban landscape value

Costs CNY13000/m2 CNY9000/m2

24. Since pre-stressed concrete hollow slab bridge has a lower cost, it is chosen as the least cost option against the pre-stressed concrete box girder bridge. 25. The costs of pipeline materials for the water supply and sewer drainage purposes are compared at different diameter levels. It is found that the conclusions drawn by the FSRs based on these least cost comparisons are reasonable and convincing. 26. Financial costs, including physical contingencies, were converted to economic costs through different approaches. For the road component, the project costs included (i) the economic costs of construction, including monetary compensation for land acquisition and resettlement triggered by the road construction; and (ii) the economic costs of road operation and maintenance. E. Economic Cost-Benefit Analysis 27. The base case EIRR calculation for individual subprojects and the whole project are presented in the following tables. At a 12% discount rate, the whole project is found to be economically viable. The NPV for the whole project is CNY 362.0 million and the base case EIRR for the whole project is 15.3%, which exceeds the EOCC. The EIRRs for Tacheng city, Emin, Tuoli, and Yumin subprojects are 15.5%, 13.8%, 16.2% and 14.6% respectively. The sensitivity analysis shows that the project’s economic return is robust against negative impacts from benefit reduction, cost overrun and project implementation delay. The results of the sensitivity analysis, EIRR for each subproject, as well as the whole project, are presented below.

Table 6. Sensitivity Analysis for the Whole Project

Percent Change Recalculated ENPV (12%) Switching Change Variable in Variable EIRR (CNY million) Value

1. Benefit reduction 10% 13.7% 176.8 20.0%

2. Capital cost overrun 10% 14.3% 265.7 26.0%

3. Delay in benefits by one year 14.1% 246.4 2 years

4. Combination of 1, 2 and 3 11.2% (99.3)

Base EIRR = 15.3%

Base NPV @12% = 362.0 CNY million

F. Distribution Analysis and Poverty Impact Indicator 28. As a result of the project, some participants lose and others gain. At a discount rate of 12 percent, the economy will lose CNY 124.23 million, mainly because of expenditures on


App 10 - 7

O&M. Laborers will gain CNY 45.06 million because the project pays wages in excess of the economic opportunity cost of labor. The project does not generate financial return but generates sufficient economic return; as the result the consumers will gain CNY2074.11 million from more convenient transportation and improved living environment.

Table 7. Distribution of the Whole Project Benefits Accounts Beneficiaries Financial Economic Difference Government Accounts Accounts Consumers Economy Labor Total Benefits 2074.11 2074.11 2074.11 0.00 Total benefits 0.00 2074.11 2074.11 2074.11 Costs Capital Costs 1203.36 1079.13 (124.23) 124.23 Labor 224.84 179.79 (45.06) 45.06 Income Taxes 85.16 (85.16) 85.16 O & M 596.76 589.50 (7.25) 7.25 Total Costs 2110.12 1848.42 (261.70) Net Benefits (2110.12) 225.69 2335.82 2074.11 216.65 45.06 2335.82


App 10 - 8

Table 8 EIRR and Sensitivity Analysis for Tacheng city subproject (CNY million)

BENEFITS

Total Benefit

COSTS

Road network

Centralized Heating Water Supply

Sewer and Stormwater Capital O & M Costs

Total Cost

Net Benefits

2015 0.00 0.00 165.84 0.00 165.84 -165.84

2016 0.00 0.00 221.12 0.00 221.12 -221.12

2017 0.00 0.00 331.67 0.00 331.67 -331.67

2018 0.00 0.00 276.40 0.00 276.40 -276.40

2019 0.00 0.00 110.56 0.00 110.56 -110.56

2020 103.32 182.97 6.35 6.37 103.32 0.00 133.28 133.28 165.73

2021 114.30 182.97 6.35 6.37 114.30 0.00 133.36 133.36 176.63

2022 126.50 182.97 6.35 6.37 126.50 0.00 133.44 133.44 188.75

2023 140.06 182.97 6.35 6.37 140.06 0.00 133.53 133.53 202.22

2024 152.14 182.97 6.35 6.37 152.14 0.00 145.49 145.49 202.34

2025 165.43 182.97 6.35 6.37 165.43 0.00 133.61 133.61 227.50

2026 180.07 182.97 6.35 6.37 180.07 0.00 133.70 133.70 242.05

2027 196.20 182.97 6.35 6.37 196.20 0.00 133.80 133.80 258.10

2028 214.01 182.97 6.35 6.37 214.01 0.00 133.89 133.89 275.81

2029 233.67 182.97 6.35 6.37 233.67 0.00 164.05 164.05 265.32

2030 255.42 182.97 6.35 6.37 255.42 0.00 133.99 133.99 317.13

2031 279.50 182.97 6.35 6.37 279.50 0.00 134.09 134.09 341.10

2032 306.18 182.97 6.35 6.37 306.18 0.00 134.19 134.19 367.68

2033 335.77 182.97 6.35 6.37 335.77 0.00 134.30 134.30 397.17

2034 368.64 182.97 6.35 6.37 368.64 0.00 149.44 149.44 414.89

2035 405.19 182.97 6.35 6.37 405.19 0.00 134.41 134.41 466.48

2036 445.88 182.97 6.35 6.37 445.88 0.00 134.52 134.52 507.05

2037 491.23 182.97 6.35 6.37 491.23 0.00 134.64 134.64 552.28

2038 541.83 182.97 6.35 6.37 541.83 0.00 134.75 134.75 602.77

2039 593.05 182.97 6.35 6.37 593.05 0.00 134.88 134.88 653.86

PV 860.42 1,366.66 47.44 47.60 860.42 313.30

IRR 15.5%






Base EIRR = 15.5%



App 10 - 9

Table 9. EIRR and Sensitivity Analysis for Emin subproject (CNY million)

BENEFITS Total

Benefit COSTS

Normal Roads Water supply Sewer and stormwater Capital O & M Costs

Total Cost

Net Benefits

2015 0.00 0.00 27.71 27.71 -27.71

2016 0.00 0 36.94 0.00 36.94 -36.94

2017 0.00 0.00 55.41 0.00 55.41 -55.41

2018 0.00 0.00 46.18 0.00 46.18 -46.18

2019 0.00 0.00 18.47 0.00 18.47 -18.47

2020 15.88 1.09 1.04 18.00 0.00 1.19 1.19 20.11

2021 17.58 1.09 1.04 19.70 1.21 1.21 22.13

2022 19.47 1.09 1.04 21.59 1.22 1.22 24.37

2023 21.57 1.09 1.04 23.69 1.23 1.23 26.87

2024 23.42 1.09 1.04 25.55 3.23 3.23 27.09

2025 25.47 1.09 1.04 27.60 1.25 1.25 31.51

2026 27.72 1.09 1.04 29.85 1.26 1.26 34.18

2027 30.21 1.09 1.04 32.33 1.28 1.28 37.11

2028 32.95 1.09 1.04 35.08 1.30 1.30 40.35

2029 35.98 1.09 1.04 38.11 6.33 6.33 38.91

2030 39.33 1.09 1.04 41.46 1.31 1.31 47.89

2031 43.04 1.09 1.04 45.17 1.33 1.33 52.26

2032 47.16 1.09 1.04 49.29 1.35 1.35 57.10

2033 51.73 1.09 1.04 53.85 1.36 1.36 62.45

2034 56.80 1.09 1.04 58.93 3.89 3.89 65.88

2035 62.44 1.09 1.04 64.57 1.38 1.38 75.01

2036 68.73 1.09 1.04 70.86 1.40 1.40 82.34

2037 75.74 1.09 1.04 77.86 1.42 1.42 90.50

2038 83.56 1.09 1.04 85.68 1.44 1.44 99.59

2039 91.55 1.09 1.04 93.68 1.46 1.46 108.85

PV 132.50 8.11 7.77 27.01

IRR 13.8%






Base EIRR = 13.6%



App 10 - 10

Table 10. EIRR and Sensitivity Analysis for Tuoli subproject (CNY million)

BENEFITS Total

Benefit COSTS

VOC Savings Passenger Capital O & M Costs

Total Net

Normal Generated Time Savings Cost Benefits

2015 0.00 0.00 0.00 0 18.67 0.00 18.67 -18.67

2016 0.00 0.00 0.00 0 24.89 0.00 24.89 -24.89

2017 0.00 0.00 0.00 0.00 37.34 0.00 37.34 -37.34

2018 0.00 0.00 0.00 0.00 31.11 0.00 31.11 -31.11

2019 0.00 0.00 0.00 0.00 12.45 0.00 12.45 -12.45

2020 12.29 3.03 1.64 16.96 0.30 0.30 16.66

2021 13.56 3.33 1.84 18.74 0.31 0.31 18.43

2022 14.97 3.67 2.07 20.71 0.31 0.31 20.40

2023 16.53 4.04 2.33 22.91 0.32 0.32 22.58

2024 17.35 4.93 2.57 24.85 1.67 1.67 23.18

2025 18.22 5.94 2.83 26.99 0.33 0.33 26.65

2026 19.13 7.08 3.12 29.34 0.34 0.34 28.99

2027 20.11 8.37 3.44 31.92 0.35 0.35 31.56

2028 21.14 9.83 3.80 34.76 0.37 0.37 34.40

2029 22.24 11.46 4.20 37.90 3.76 3.76 34.14

2030 23.40 13.31 4.64 41.36 0.38 0.38 40.98

2031 24.64 15.39 5.14 45.18 0.39 0.39 44.79

2032 25.96 17.74 5.69 49.40 0.40 0.40 49.00

2033 27.37 20.38 6.31 54.07 0.41 0.41 53.66

2034 28.88 23.36 7.00 59.24 2.12 2.12 57.12

2035 30.48 26.72 7.77 64.97 0.42 0.42 64.55

2036 32.20 30.50 8.64 71.34 0.44 0.44 70.90

2037 34.04 34.76 9.60 78.41 0.45 0.45 77.96

2038 36.02 39.57 10.68 86.28 0.46 0.46 85.81

2039 37.33 45.00 11.90 94.23 0.48 0.48 93.75

PV 82.62 41.44 46.80

IRR 16.2%





4. Combination of 1, 2 and 3 12.6% 6.0

Base EIRR = 16.2%



App 10 - 11

Table 11. EIRR and Sensitivity Analysis for Yumin subproject (CNY million)

BENEFITS Total

Benefit COSTS

VOC Savings Passenger Capital O & M Costs

Total Net

Normal Generated Time Savings Cost Benefits

2015 0.00 0.00 0.00 0 17.27 0.00 17.27 -17.27

2016 0.00 0.00 0.00 0 25.91 0.00 25.91 -25.91

2017 0.00 0.00 0.00 0.00 21.59 0.00 21.59 -21.59

2018 0.00 0.00 0.00 0.00 8.64 0.00 8.64 -8.64

2019 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2020 5.35 1.16 2.89 9.40 0.21 0.21 9.20

2021 5.88 1.28 3.24 10.40 0.21 0.21 10.19

2022 6.47 1.40 3.63 11.51 0.22 0.22 11.29

2023 7.12 1.54 4.07 12.74 0.23 0.23 12.51

2024 7.44 1.90 4.47 13.82 1.16 1.16 12.66

2025 7.78 2.31 4.91 15.00 0.23 0.23 14.77

2026 8.14 2.77 5.40 16.30 0.24 0.24 16.06

2027 8.51 3.28 5.93 17.73 0.25 0.25 17.48

2028 8.91 3.86 6.53 19.30 0.25 0.25 19.05

2029 9.33 4.51 7.19 21.03 2.61 2.61 18.42

2030 9.77 5.24 7.92 22.93 0.26 0.26 22.67

2031 10.24 6.05 8.73 25.02 0.27 0.27 24.75

2032 10.74 6.97 9.63 27.33 0.28 0.28 27.05

2033 11.26 7.99 10.62 29.88 0.29 0.29 29.59

2034 11.82 9.14 11.73 32.69 1.47 1.47 31.22

2035 12.40 10.43 12.96 35.79 0.29 0.29 35.50

2036 13.03 11.87 14.33 39.23 0.30 0.30 38.93

2037 13.69 13.48 15.85 43.03 0.31 0.31 42.72

2038 14.39 15.29 17.55 47.24 0.32 0.32 46.92

2039 14.84 17.32 19.43 51.60 0.33 0.33 51.27

PV 34.82 16.13 18.37

IRR 14.6%






Base EIRR = 14.6%



App 10 - 12

Table 12. Economic Internal Rate of Return for the whole project (CNY million)

Year

Benefits Costs Net

Benefits Tacheng Emin Tuoli Yumin Total Capital Costs

O&M Total

2015 0 0 0.0 0.0 0.0 229.5 0.0 229.49 (229.49)

2016 0 0 0.0 0.0 0.0 308.9 0.0 308.86 (308.86)

2017 0 0 0.0 0.0 0.0 446.0 0.0 446.02 (446.02)

2018 0 0 0.0 0.0 0.0 362.3 0.0 362.32 (362.32)

2019 0 0 0.0 0.0 0.0 141.5 0.0 141.48 (141.48)

2020 299.0 18.0 17.0 9.4 343.4 0.0 135.0 134.98 211.70

2021 310.0 19.7 18.7 10.4 358.8 0.0 135.1 135.09 227.38

2022 322.2 21.6 20.7 11.5 376.0 0.0 135.2 135.20 244.81

2023 335.7 23.7 22.9 12.7 395.1 0.0 135.3 135.31 264.18

2024 347.8 25.6 24.9 13.8 412.0 0.0 151.5 151.55 265.27

2025 361.1 27.6 27.0 15.0 430.7 0.0 135.4 135.43 300.44

2026 375.8 29.8 29.3 16.3 451.2 0.0 135.6 135.55 321.28

2027 391.9 32.3 31.9 17.7 473.9 0.0 135.7 135.68 344.26

2028 409.7 35.1 34.8 19.3 498.8 0.0 135.8 135.80 369.60

2029 429.4 38.1 37.9 21.0 526.4 0.0 176.8 176.75 356.78

2030 451.1 41.5 41.4 22.9 556.9 0.0 135.9 135.94 428.67

2031 475.2 45.2 45.2 25.0 590.6 0.0 136.1 136.07 462.90

2032 501.9 49.3 49.4 27.3 627.9 0.0 136.2 136.21 500.82

2033 531.5 53.9 54.1 29.9 669.3 0.0 136.4 136.36 542.87

2034 564.3 58.9 59.2 32.7 715.2 0.0 156.9 156.92 569.12

2035 600.9 64.6 65.0 35.8 766.2 0.0 136.5 136.50 641.54

2036 641.6 70.9 71.3 39.2 823.0 0.0 136.7 136.66 699.22

2037 686.9 77.9 78.4 43.0 886.2 0.0 136.8 136.82 763.46

2038 737.5 85.7 86.3 47.2 956.7 0.0 137.0 136.98 835.08

2039 788.7 93.7 94.2 51.6 1028.2 0.0 137.1 137.15 907.72

NPV 1,079.1 589.5 1,489.8 362.0

EIRR

15.3%


App 10 - 13

Appendix.

1. The benefits of the road project component greatly depend on the future transport demand in the area. The PPTA team will obtain demand forecasts for such with the help of the transport model through simulations of the traffic load using existing data for calibration. By modifying the number of trips generated and attracted by each area, it is possible to simulate changes in average daily intensities for each route, both with and without the Project.

2. There are four types of benefits are taken into account: those due to changes in the vehicles' operation costs, changes in accidents' costs, travel time savings, and impacts on local economy, measured by additional GDP growth.

3. The operation costs include: (i) maintenance, repairs and spare parts; (ii) tyres' wear and tear; and (iii) fuel costs. Fuel consumption is calculated as a function of petroleum prices, distances travelled and travelling speed. Average consumption per km at each speed is estimated using national data. Accidents' costs with and without the Project are computed as a function of total travelled distance. Note that theoretically this benefit can be negative in net since although improve road infrastructure reduces the number of accidents which would take place, would increase average driving speeds, thus increases the probability of death in each accident. When converting travel time savings by absolute time values into monetary units, a value for travel time savings needs to be chosen. This is not an easy task, as the literature on this issue indicates 3. The current analysis uses the values recommended by Calfee and Winston (1998)4 and Wardman (1998)5.

4. The costs of bridge and road network projects include construction costs, maintenance and rehabilitation costs, road-user costs, and all other external or exogenous costs or benefits. These costs or benefits are modelled over an extended analysis period equal to or longer than the expected life of the road, hence the term ‘life-cycle cost analysis’. The costs of construction, routine, and periodic maintenance are usually borne by the agency or authority in charge of the road network. However, road-user costs are borne by the community at large in the form of vehicle operating costs (VOC), travel time costs, accident costs and other indirect costs.

5. The cost of new road construction is calculated from the sum of the costs of land acquisition, site preparation, earthworks, pavement construction, bridge and drainage structures, and overheads. Site preparation includes clearing vegetation from the right-of-way, and the stripping and disposal of topsoil. The cost of earthworks, however, is greatly influenced by the terrain and the geometric standard specified for the road. This includes the costs of excavations, material haulage and compaction. The cost of pavement construction is a function of the number, thickness and type of pavement layers, and includes the costs of shoulders and curbs. A sizeable percentage of road construction costs can be attributed to the costs of the provision of adequate drainage facilities. Road construction will usually involve the setting up of temporary site camps and the transport of equipment, materials and labor to the construction site. At the end of the analysis period, a residual value representing the remaining economic value of the road asset will be assigned, assuming that this can be reused.

6. The cost of road maintenance is a function of pavement condition, the rate of deterioration and the maintenance standard applied by a road agency. Pavement deterioration is modeled in terms of a number of defects including road roughness, pavement cracking, rutting, raveling, potholes, gravel loss on unsealed roads, and joint faulting and spalling on concrete pavements. The rate of deterioration is a function of the initial pavement design standard, traffic loading, maintenance standards and the effects of the environment (e.g. weather). The amount of maintenance carried out in a given year depends on user-specified maintenance standards and

3 Hensher, D. (1997) “Behavioral Value of Travel Time Savings in Personal and Commercial Automobile Travel”, in

Greene, D., Jones, D., Delucchi, W. and Mark. A (eds.) The full costs and benefits of transportation: Contributions to theory, method and measurement, Heidelberg and New York, Springer, 245-79. 4 Calfee, J. and Winston, C. (1998) “The value of automobile travel time: implications for congestion policy”, Journal

of Public Economics, 69, 83-102. 5 Wardman, M (1998), The value of travel time, Journal of Transport Economics and Policy, 32, 3, 285-316

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App 10 - 14

the predicted road condition. The annual cost of road-works is calculated from the amounts of reactive routine maintenance, periodic maintenance and any road improvements applied in a given year. These depend on the predicted pavement performance and specified maintenance or improvement standard that may include a combination of one or more of different types of road-works.

7. Pavement performance is largely modeled as a function of several factors. The most important factors are traffic loading, pavement strength and road roughness. Traffic loading is measured in terms of the cumulative equivalent standard axle load (ESAL).

8. Pavement strength is represented by the Structural Number (SNP), an index representing pavement strength. The SNP of a pavement is defined by an empirical relationship in which the thickness and strength of each pavement layer are combined using the sum of their product. The pavement layer strength mainly depends on the type and quality of the constituent materials. In general, pavements with high structural numbers will have a low rate of deterioration under the same condition of traffic.

9. Road-user costs comprise the costs of vehicle operation, travel time and road accidents. The discomfort to road users that affects the choice of route or the willingness to pay a higher toll, if all other things are equal, is not explicitly included. However, the lack of acceptable methods of estimating discomfort costs in developing countries is the main reason why this component of road-user costs is usually excluded in existing road investment appraisal models. Accident costs can be estimated in terms of both the resource content (e.g. cost of spares and vehicle replacement) and the total costs of injuries and fatalities.

Vehicle Operating Costs (VOC)

10. VOCs are estimated for all types of vehicle likely to use the road networks and bridge. A weighted average based on present and forecast traffic profile for each type of vehicles and trends in vehicle characteristics are conducted. In the current analysis, the following vehicle types are considered:

• Passenger cars (including SUVs and other 4-wheel drive vehicles);

• light and commute buses (including passenger vans);

• small to medium trucks; and

• heavy-duty trucks.

11. Most vehicles are manufactured domestically including large portions of them assembled locally by foreign joint-venture companies. The fuel efficiencies of most vehicles are close to international standards now. The representative vehicles in each of the above categories that were selected are shown in Table 1-1.

Table A1 Representative Vehicles Vehicle types Manufacturer Model

1 Passenger car Volkswagen Toyota

Passat Camry

2 Utility Vehicle-4 wheel drive Mitsubishi Toyota

Pajero Land Cruiser

3 Small truck(less than or equal to 2 tons capacity) Isuzu NKR55LLBACJA

4 Medium truck(2 axles with 2-7 ton capacity) Dongfeng EQ1108G6D13

5 Large truck(3 or more axles with 7-14 ton capacity) Steyr ZZ1192BL461

6 Medium Bus (less than 12 seats) Jinbei SY6480B3C

12. Table 1-2 summarizes the vehicle characteristics assumed for the present evaluation. These include vehicle utilization rates derived from a review of recent Bank-financed PPTA project reports.

Formatted: Space Before: 0.5 line


App 10 - 15

Table A2 Vehicle Characteristics UNITS PASSENGER VEHICLES FREIGHT VEHICLES

CAR

LIGHT

BUS

MEDIUM

BUS

LIGHT

TRUCK

MEDIUM

TRUCK

HEAVY

TRUCK

LIGHT

ARTIC

TRUCK

PCU EQUIVALENT 1.0 1.5 1.5 1.0 1.5 1.5 2.0

TARE WEIGHT TONNES 0.9 2.6 4.1 2.0 4.1 6.5 7.0

LOAD CAPACITY TONNES 0.5 1.8 2.7 1.5 5.0 10.0 12.0

LOAD CAPACITY PAX 5 15 28

FUEL TYPE CURRENT P=PETROL,

D=DIESEL

P P D P D D D

DRIVING POWER HP 80 90 100 80 135 250 210

NUMBER OF AXLES NO. 2 2 2 2 2 2 3

NO. OF TIRES ON

VEHICLE

NO. 4 4 6 4 6 6 6

ANNUAL VEHICLE USE HOURS/YEAR 600 1,500 1,650 1,250 1,400 1,800 1,700

ANNUAL VEHICLE USE KM/YEAR 25,000 56,000 66,000 45,000 61,000 71,000 64,000

LIFE OF NEW TIRE KM. 40,000 35,000 80,000 45,000 60,000 80,000 80,000

NUMBER OF OTHER

ON-BOARD CREW

0 1.0 1.0 0.5 1.0 1.0 1.0

VEHICLE LIFE (YEARS) 10 10 12 10 12 12 12

Source: consultants’ estimates Notes: (a) medium truck equivalent (b) Utilization is a function of vehicle speed. Values quoted assume 50 km/h

8 . Vehicle and tire costs Table 1-3 shows financial and economic prices of new vehicles. Vehicles are subject to several taxes. They attract value added tax at the standard rate of 17 percent, a consumption tax (range 3 to 20% depending on the size of the engines) and a vehicle purchase tax (8%). Import duties on foreign vehicles are uniformly 25% now as China’s commitment to WTO agreements.

Table A3 Financial and Economic Costs of New Vehicles (CNY)

Category Financial Cost Economic Cost

Passenger Car 126,500 106,500

Utility vehicle 313,700 264,300

Small Truck 130,300 109,700

Medium Truck 156,100 131,500

Large Truck 218,200 183,800

Heavy Truck 282,200 237,800

Medium Bus 150,700 126,900

Heavy Bus 396,200 333,800

Source: local information and consultants’ estimates

9. Table 1-4 show financial and economic (less taxes) costs of tires.



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App 10 - 16

Table A4 Cost of New Tires

Category/Type Financial Cost Economic Cost

1 Passenger Car 370 316

2 Utility vehicle 650 556

3 Small Truck 580 496

4 Medium Truck 1100 940

5 Large Truck 1500 1282

6 Heavy Truck 1750 1496

7 Medium Bus 450 385

8 Heavy Bus 1760 1504

Source: local tire dealers

10. The economic costs of fuel are built up from FOB crude oil prices during the first quarter of 2004: see Table 1-5 below.

Table A5 Fuel Costs (CNY) Cost Component Gas Diesel Lubricating Oil

Cost per Liter 5.40 5.20 22.0

11. The costs of employing drivers, other crew members and maintenance staff are part of vehicle operating costs. The values in Table 1-6 are wages plus social costs.

Table A6 Labor costs per year (CNY)

Vehicle Type Driver

(include 10% welfare) Crew

(include 10% welfare)

Small Truck 9,076 9,076

Medium Truck 9,076 9,076

Large Truck 11,766 11,766

Heavy Truck 13,020 13,020

Medium Bus 11,766 7,799

Heavy Bus 16,338 11,634

Note: hourly rates assume 1,920 hours worked per year

12. Maintenance costs for labor repairing vehicles varies by vehicle type. Average maintenance costs are shown in Table 1-7.


App 10 - 17

Table A7 Maintenance Costs (CNY per hour)

Category/Type Financial Cost

(includes 10% welfare)

Passenger Car 4.43

Utility vehicle 5.06

Small Truck 3.56

Medium Truck 3.56

Large Truck 4.43

Heavy Truck 5.06

Medium Bus 4.43

Heavy Bus 6.25

13. Other costs include insurance and administration costs etc. Vehicle insurance rates are assumed to be 2.5% of the vehicle price6. Vehicles owned to carry out official duties or earn a commercial return have associated administration costs such as managing vehicle crews, organizing the use of vehicles and scheduling maintenance. In the light of data from previous studies, these and other overhead costs are set at 5% for cars and 15% for other vehicles. This percentage is applied to the sum of all (other) financial VOCs. Since the resources involved are mainly skilled labor, for which the shadow wage rate factor is unity, the economic and financial costs are effectively the same.

14. The next step is to layout the effect of road and traffic conditions on VOCs. Traditionally it incorporates relationships for estimating the effect of road and traffic conditions on speeds and VOCs. Consumption rates for VOC components are firstly estimated for travel on a straight, level road at 50 km/h under uncongested conditions, then factors are applied to adjustments. The adjusting factors are listed in Table 1-8.

Table A8 Basic resource consumption rates Car Van Light

bus Med bus Large

bus Light truck

Med truck

Heavy truck

Light artic truck

Very heavy truck

Artic truck

Fuel consumption (liter/hundred km) 8.7 11.3 16 29 27 16 23 26 30 40 51

Oil consumption (liter/’000 km) 2.6 2.6 2.6 2.9 3.1 2.8 3.0 3.3 3.5 3.6 4.0

Maintenance parts (% of new vehicle price/’000 km) 0.15 0.15 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

Maintenance labor (hours/year) 30 50 60 80 100 45 70 90 100 100 100

6 Approximate rate from The People’s Insurance Company of PRC



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App 10 - 18

Table A9 Resource consumption adjustment factors Roughness

(IRI units) Terrain

(grade G) Speed (km/h)

Congestion (V/C ratio)

Light passenger vehicle: Fuel Consumption 0.979+0.0104*IRI 0.9586*exp(0.027*G) 0.291+24.26/S+

0.000087S2

1+0.14*(V/C)

Oil Consumption 0.804+0.0798*IRI 0.997+0.0471/S+ 0.0000003S

2

Tire 0.751+0.1247*IRI 0.8699*S^0.03564 1+0.51*(V/C) Maintenance Labor 0.811*exp(0.11*IRI)-.010 0.6215+18.92/S Maintenance Parts 0.702*exp(0.1779*IRI)-0.002 0.6215+18.92/S Depreciation 0.702*exp(0.1779*IRI)-0.002 0.6215+18.92/S

Medium truck: Fuel Consumption 0.990+0.0048*IRI 0.861*exp(0.129G)-

0.045 0.209+31.04/S+ 0.000068S

2

1+0.14*(V/C)

Oil Consumption 0.903+0.0487*IRI 0.973+0.27/S+ 0.0000088S

2

Tire 0.943+0.0286*IRI 0.6867*S^0.0918 1+0.51*(V/C) Maintenance Labor 0.909*exp(0.0916*IRI)-0.091 0.178+41.11/S Maintenance Parts 0.85*exp(0.1789*IRI)-0.215 0.178+41.11/S Depreciation 0.85*exp(0.1789*IRI)-0.215 0.178+41.11/S

Large bus: Fuel Consumption 0.989+0.0058*IRI 0.861*exp(0.129G)-0.045 0.341+24.64/S+

0.000068S2

1+0.14*(V/C)

Oil Consumption 0.912+0.0438*IRI 0.998+0.103/S Tire 0.941+0.0295*IRI 0.774*S^0.0627+

0.011 1+0.51*(V/C)

Maintenance Labor 0.819*exp(0.0962*IRI+0.007 0.342+32.9/S Maintenance Parts 0.915*exp(0.046*IRI)-0.003 0.342+32.9/S Depreciation 0.915*exp(0.046*IRI)-0.003 0.342+32.9/S

Heavy truck: Fuel Consumption 0.978+0.0109*IRI 0.9586*exp(0.027G) 0.291+24.26/S+

0.000087S2

1+0.14*(V/C)

Oil Consumption 0.908+0.0458*IRI 1 Tire 0.942+0.0288*IRI 0.8266*S^0.051-

0.009 1+0.51*(V/C)

Maintenance Labor .961*exp(0.0704*IRI)-0.106 0.429+26.78/S+ 0.000014S

2

Maintenance Parts 0.847*exp(0.1367*IRI)-0.113 0.429+26.78/S+ 0.000014S

2

Depreciation 0.847*exp(0.1367*IRI)-0.113 0.429+26.78/S+ 0.000014S

2

15. The VOCs for a smooth Class 2 road in flat terrain and with light traffic are given in table 1-10. The accuracy within VOC calculations in terms of input data on vehicle prices, tires etc. is not critical as the comparison in VOCs is made in differences between the “with” project and “without” project situation. Sensitivity testing on the level of benefits from VOC will be made within the economic evaluation to allow for any possible inaccuracies in the calculation of the VOC benefits.

Table A10 Economic VOC (CNY/km) for IRI = 2.0

ITEM CAR LIGHT BUS

MEDIUM BUS

LIGHT TRUCK

MEDIUM TRUCK

HEAVY TRUCK

TIME-RELATED COST CNY/HOUR

34.62 45.46 47.55 39.41 51.75 53.86

DEPRECIATION AND INTEREST

12.57 5.18 4.97 6.21 6.65 7.23

ON-BOARD CREW 13.98 27.96 27.96 20.97 27.96 27.96

OVERHEADS AND INSURANCE

8.07 12.32 14.62 12.22 17.14 18.67

DISTANCE-RELATED (CNY/KM)

0.98 0.94 1.27 0.99 1.34 1.68

FUEL AND OIL 0.35 0.55 0.86 0.58 0.88 1.12

TIRES 0.04 0.07 0.09 0.05 0.12 0.12

MAINTENANCE 0.15 0.11 0.13 0.11 0.13 0.18

DEPRECIATION AND INTEREST

0.44 0.21 0.19 0.25 0.22 0.26

AVERAGE TOTAL COST (CNY/KM)

1.79 2.15 2.48 2.03 2.47 2.97


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App 10 - 19

Table A11 Economic VOC (CNY/km) for IRI = 2.0 – 6.0

IRI ROUGHNESS

CAR LIGHT BUS

MEDIUM BUS

LIGHT TRUCK

MEDIUM TRUCK

HEAVY TRUCK

LIGHT ARTIC. TRUCK

2.0 1.79 2.15 2.48 2.03 2.47 2.97 3.19 3.0 1.83 2.19 2.50 2.07 2.52 3.03 3.26 4.0 1.88 2.23 2.52 2.11 2.57 3.09 3.33 5.0 1.93 2.28 2.54 2.16 2.63 3.15 3.40 6.0 2.00 2.34 2.56 2.21 2.70 3.22 3.49

Accidents

16. Recent data on accident frequencies for PCR is shown in Table 1-12.

Table A12 Accident Data 1999-2005 PRC

YEAR TOTAL

ACCIDENTS FATALITIES INJURIES ECONOMIC LOSS

CASES PER YEAR PERSONS PER YEAR PERSONS PER YEAR MILLION CNY PER YEAR

1999 412,860 83,529 286,080 2,124.018

2000 616,971 93,853 418,721 2,668.904

2001 754,919 105,930 546,485 3,087.873

2002 773,137 109,381 562,074 3,324.381

2003 667,507 104,372 494,174 3,369.146

2004 517,889 107,077 480,864 2,391.410

2005 450,254 98 ,738 469 ,911 UNKNOWN

17. The estimated economic cost per fatality is the present value of 15 years of per capita GDP. The estimated cost per non fatal injury is CNY 10,000. In addition, it is assumed that the marginal cost of medical and emergency services and damage to property amount to CNY 3,000 as a result of an average road accident.

Table A13 Values of fatalities ACCIDENT VICTIM ANNUAL WAGE, CNY VALUE OF FATALITY, CNY CREW MEMBER 30,000 204,000

CAR PASSENGER 18,000 123,000 OTHER PASSENGER, PEDESTRIAN OR

CYCLIST 7,000 48,000

18. The build up of the estimated total direct cost per accident is shown in Table 1-14 The total of direct and indirect costs is taken as five times the direct cost.

Table A14 Estimated total direct cost per accident

ITEMS % FATAL ACCIDENTS PER 10,000 VEHICLES

% INJURY ACCIDENT FATALITY

VALUE NON-FATAL

VALUE PROPERTY ETC

WITH

PROJECT 20.7 40.4

132,195 10,000 8,000 WITHOUT PROJECT

41.3 70.0 132,195 10,000 3,000

The Value of Travel Time (VOT) Savings

19. The road network will reduce travel times. VOCs embody the value of the travel time saved by vehicle drivers and crews, but not that of passengers. The values placed by travelers on



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App 10 - 20

travel time savings are best established using revealed or stated preference surveys. In the absence of survey results there are two approaches to valuing time savings:

i. use of an empirical relationship between VOT and GDP per head derived using regression between pairs of values from stated and revealed preference studies; or

ii. use of appropriate income levels.

20. The latter approach is used. The value of time for work or business trips is assumed to be related more to urban incomes for cars, and more to average regional incomes for buses. Note was taken of the values used in other studies before choosing the annual income levels shown in Table 1-15. Non-work trips are given no value.

Table A15 Economic values of personal travel time savings

Annual income per passenger

traveling for work purposes

Percent of passengers

traveling in work time

Value of time savings per

average passenger-hour

Passengers per vehicle

Value of passenger time savings per

vehicle-hour

Car 19,000 70 6.93 3 20.8

Bus 8,000 25 1.04 20 20.8

21. Goods in transit are unproductive – they represent inventory costs. Thus there is a value in reducing travel times, such as by traveling on the road network. The value of freight time savings is calculated using the 12%. A representative value of CNY 6/kg is used. For a load of 5 tonnes with a value of CNY 30,000 saving one hour is worth CNY 0.39. This is included in the economic analysis but it is a relatively insignificant amount compared with other benefits. The average value of a load is assumed to increase at 5% annually.


1


Poverty and Social Assessment


2

Table of Contents

I. Introduction ......................................................................................................................... 3

II. Methodology ........................................................................................................................ 3

A. Basic Approach and Methodology ............................................................................. 3

B. Household Survey and Focus Group Discussion ...................................................... 4

III. Project Outputs and Areas .................................................................................................. 6

A. Project Outputs ........................................................................................................... 6

B. Affected Project Areas and People ............................................................................ 7

IV. Social Profile of Project Areas ............................................................................................ 8

A. Basic Social and Economic Characterization ............................................................ 9

B. Poverty ...................................................................................................................... 12

C. Ethnic Minority Groups ............................................................................................. 16

D. Gender Development ............................................................................................... 18

V. Public Particpation and Survey Findings .......................................................................... 19

A. Public Participation during Project Preparation ....................................................... 19

B. Summary of Survey Findings ................................................................................... 19

VI. Project Impact Analysis .................................................................................................... 22

A. Project Beneficiaries ................................................................................................. 22

B. Employment Generation .......................................................................................... 23

C. Willingness to Pay and Affordability ......................................................................... 24

D. Impacts on Poverty ................................................................................................... 24

E. Impacts on Ethnic Minority Groups .......................................................................... 25

F. Impacts on Gender ................................................................................................... 26

G. Impacts on Land Acquisition and Resettlement and Environment .......................... 27

H. Summary of Impacts and Benefits ........................................................................... 27

VII. public Awareness and action Plans .................................................................................. 28

A. Public Consultation and Awareness Plan ................................................................ 28

B. Social Action Plan .................................................................................................... 29

C. Gender Action Plan .................................................................................................. 29

D. Ethnic Minority Development Plan ........................................................................... 29

VIII. Recommendations ............................................................................................................ 30


3

I. INTRODUCTION

The Poverty and Social Assessment (PSA) is one of the outputs of the PPTA, which collectively recommend approaches necessary in achieving a least-cost, sustainable solution for urban infrastructural and environmental improvement in Tacheng Prefecture that will advance development master plans and assist in improving living conditions, particularly those of the poor in four project border cities/counties of Tacheng City, Yumin County, Tuoli County and Emin County.

This report focuses on social and poverty issues relating to the Project and, in particular, those within the PPTA scope of works. The objectives of the PSA are to (i) assess the impact of the Project on the social development and poverty reduction in the project area; (ii) optimize the project design through social considerations in order to maximize social benefits, particularly benefits to the vulnerable people, including the poor, women, ethnic minorities and other social groups; and (iii) ensure the social dimensions are fully incorporated into the final design of the Project.

The Project will contribute to poverty reduction through improvement of the local infrastructural facilities, protection of the environment by reduction of risks to health, and support of the PRC Government’s national and regional infrastructure development strategies. It will also provide employment opportunities during both the construction and operation phases of the Project, with additional multiplier effects to levels of economic activity.

In this report, the approach and methodology used to conduct the PSA are introduced in Section II. The Project outputs or components and areas are identified in Section III; A social profile of the Project area including population composition, income and expenditure, education, employment, safeguard policies, poverty, ethnic minority and gender status is presented in Section IV; Public participation and findings from household survey and focus group discussions are summarized in Section V, while project impacts on beneficiaries, employment generation, poverty, ethnic minority and gender are analyzed in Section VI. A public awareness plan and related action plans are prepared in Section VII. Some recommendations for the project design and implementation are suggested in Section VIII.

II. METHODOLOGY

This PSA includes the results of a socio-economic survey, a range of stakeholder consultation sessions, and a series of key informant interviews, particularly with local government bureaus with mandates related to employment, vulnerable people, women and ethnic minorities. It also includes the results of discussions with staffs from the executing agency (EA) as represented by Tacheng Prefecture Project Management Office (TPMO), and implementing agencies (IAs), and other PPTA team members, and integrates the results of field observations at the various project component sites over the period January – March 2014 and the results of household survey and focus group discussions conducted in April and May 2014.

A. Basic Approach and Methodology

The approach and methodology used to prepare the PSA include (i) secondary data collection from local statistic yearbooks, research reports, and development plans, etc; (ii) informant interview with relevant institutions of local governments and agencies; (iii) household survey (HS) on family basic information, opinions on the project, and willingness to pay of local residents; (iv) community meetings to discuss the project design, concern on the project, environmental improvement, and employment opportunity; and (v) focus group discussions (FGDs) of women and men, poor and ethnic minority, separately, to discuss the project design, community participation, environmental awareness, concerns and requirements, traffic safety


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issues, and employment opportunities.

Secondary Data Collection: various data collection methods were used to gather both qualitative and quantitative data from different sources, including (i) Xinjiang Statistics Yearbooks, (ii) Tacheng Prefecture Statistics Yearbooks, (iii) the project city/counties’ statistics yearbooks; (iv) the project feasibility study reports (FSRs), (v) relevant government reports of the project city/counties, and (vi) reports from relevant governmental departments, etc.

Informant Interviews: The people met and interviewed include staff from the TPMO, the design institute (DI), prefecture (and city/counties) bureaus of civil affairs, labor and social security transportation, housing and construction, prefecture ethnic minority committee, and local women’s federation.

B. Household Survey and Focus Group Discussion

Household Survey (HS): A random sampling HS was conducted in the project city and counties and 486 households were surveyed. The HS questions included not only basic household’s socioeconomic status, but also opinions and concerns on local situation and development in (i) district heating, (ii) solid waste management, and (iii) road and traffic management for Tacheng city components, and road and traffic management for the components of Emin, Tuoli and Yumin counties, respectively. Specific household distributions are presented in Table 1.

Table 1: Sample Size and Distribution of Household Survey in Project Areas

City/county Subdistrict

(Street/township) Affected Population

(person) Sample Household

(HH)

Tacheng

Liaota New Area 6,079 32

Heping 21,360 60

Xincheng 21,579 58

Dubieke 27,632 80

Emin Emin 41,862 102

Jiaodong1 1,288 12

Tuoli Tuoli 29,871 77

Duolate2 897 10

Yumin Halabula 13,645 34

Halabula3 1,971 21

Total 166,184 486

Notes: 1. Two affected villages; 2. One affected village; 3. One affected village of Halabula township.

Focus Group Discussions (FGDs): 17 FGDs to assess specific impact on affected groups were carried out in Tacheng City, and counties of Emin, Tuoli and Yumin. 174 inhabitants from poor, female and ethnic minority households, separately, participated in the discussions. FGDs’ topics and distribution are presented on Tables 2 and 3.

Table 2: Focus Group Discussion in Tacheng

Component Street/ town Participants FGD Topic


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Component I: Rehabilitation of

Kalanggur river in Tacheng

Axier Township

23 farmers in two FGDs, 4 from low-income family, 7

women, 13 ethnic minorities

2 (Kuertobie village in upper stream of the

river; Derzejafuke village near the

wetland)

Major function and impacts of the river;

average damage; main concerns

Component I: District heating improvement in

Tacheng

Liaota New Area

12 farmers who are using home stove for heating, and will use district heating after

the project completion, 5 from

low-income family, 7 women, 8ethnic

minorities

1.Mayihai village

Major heating methods, money cost and time spent; health issue; main concerns and

requirements

Heping

13 residents, 2 from low-income family, 5


1.Guangchang community

Major heating methods, money cost and time spent; health issue; service quality, main

concerns and requirements

Component I: Municipal solid

waste management improvement in

Tacheng

Liaota New Area

10 farmers, 2 from low-income family, 5


1.Tasken village

Home garbage management, tariff; 3R,

health issue; main problems, concerns and

requirements

Xincheng


women,5 ethnic minorities

1.Aiguo community



requirements

Component I: Urban roads and

bridges in Tacheng

Liaota New Area

12 farmers, 5 from low-income family,

100% women 1.Yuanyi village

Traffic safety, traffic mode change, public transport status and

requirement

Dubieke

10 residents, 5 from low-income family, 9 women,100% ethnic

minorities

1.Linnan community

Traffic safety, public transport status, main

problems and requirements

Total: 90, including 32 from low-income

family, 53 women, 41 ethnic minorities 8

Table 3: Focus Group Discussion in Emin, Tuoli and Yumin

Component Town/

township Participants FGD Topic

Component II:

Infrastructures

and municipal

services in Emin

Emin

(1) 9 Students and 2 teachers, 50%

female in the first middle school

(2) 11 urban residents, 5 from low-

income family, 9 women, 8 ethnic

minorities in Alshat community

2

Traffic safety,

traffic mode

change, public

transport services

Jiaodong 11 farmers, 1 from low-income family,

1 woman, 6 ethnic minorities 1

Traffic safety,

traffic mode

change, public

transport status

and requirements

Component III:

Infrastructures

and municipal

services in Tuoli

Tuoli

8 Students and 2 teachers, 4 female in

middle school No.2

13 urban residents, 5 from low-income

family, 10 women, 7 ethnic minorities in

2

Traffic safety,

traffic mode

change, public

transport services


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6

Tuoli town

Duolate


50% women, 100% ethnic minority in

Tiesbahan village

1

Traffic safety,

traffic mode

change, public

transport status

and requirements

Component IV:

Infrastructures

and municipal

services in Yumin

Halabula

8 students and 2 teachers, 60% female

in the first primary school


family, 8 women, 7 ethnic minorities

2

Traffic safety,

traffic mode

change, public

transport services

Halabula1


50% women, 50 ethnic minority 1

Traffic safety,

traffic mode

change, public

transport status

and requirements

Total 84, including 24 from low-income

family, 50women, 45 ethnic minorities 9

Note: 1. Halabula township

Based on these approaches, beneficiaries for each component and for the Project as a whole, and key benefits and risks of the Project are identified. The project impacts on inhabitants and local social development are assessed. Job opportunities generated directly and indirectly by the Project to be filled by local recruitment are estimated; including employment opportunities from construction, maintenance, operation, and opportunities for targeting vulnerable people is investigated. In addition, gender impacts and risks are identified.

III. PROJECT OUTPUTS AND AREAS

A. Project Outputs

The Project has five outputs, including: (i) Tacheng City infrastructures, municipal services, district heating, municipal solid waste (MSW) management, and river rehabilitation; (ii) Emin County infrastructures and municipal services; (iii) Tuoli County infrastructures and municipal services; (iv) Yumin County infrastructures and municipal services, and (v) capacity development and institutional strengthening.

(I) Tacheng City Infrastructures, Municipal Services, District Heating, MSW Management, Alley Rehabilitation, Baktu Port Equipment Upgrade, and River Rehabilitation – The component will improve the urban infrastructures and municipal services in the new urban area, including: (i) new construction of 13 urban roads with a total length of 29.5 km with the provision of promoting people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport; (ii) installation of a 47.7 km water supply piping network, a 48.8 km sanitary sewer piping network, a 40.5 km primary hot water heating pipe network and 27 hot water heat exchange stations with the road construction; (iii) rehabilitation of 14.1 km alleys; (iv) upgrade of security monitoring and MSW equipment for Baktu Port; (v) improvement of the MSW management by applying 3R principles including to introduce 2-bin system, MSW direct collection and disposal and construction waste recycling; and (vi) rehabilitation of 15.2 km Kalanggur River.

(II) Emin Town Infrastructures and Municipal Services – The component includes: (i) rehabilitation of one urban road and new construction of 5 urban roads with a total length of 10.1 km; (ii) installation of a 7.7 km water supply piping network; and (iii) installation of a 8.8 km sanitary sewer piping network.


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(III) Tuoli Town Infrastructures and Municipal Services – The component will improve the urban infrastructures around the existing urban area by new construction of the outer ring road with a total length of 14.1 km.

(IV) Yumin Town Infrastructures and Municipal Services – The component will improve the urban infrastructures and municipal services in the existing as well as new urban area including rehabilitation of three urban roads and new construction of three urban roads with a total length of 9.7 km with the provision of a people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport.

(V) Improved Capacity and Institutional Arrangement – Provide support for project implementation on project management, institutional strengthening, capacity development and training.

B. Affected Project Areas and People

Tacheng Prefecture is located in northwest of Xinjiang Uygur Autonomous Region (Xinjiang) and consists of 2 cities and 5 counties1 with area of 105,000 km2 including Tacheng City, Emin County, Tuoli County and Yumin County defined as the direct project city/counties or project areas. There are 5 counties (city)2 bordering Kazakhstan. The Prefecture had a total population of 1.355 million, including endemic population of 0.968 million. A total of 0.4456 million of ethnic minority’s people in 29 ethnic groups are living in the Prefecture, according for 45.8% of the total endemic population in 2012.

The Project will be implemented in Tacheng City, Emin County, Tuoli County and Yumin County, which population accounts for 50% of the total population of Tacheng Prefecture. They are all border counties. Among them, Tuoli is a key national poverty county and Yumin is one of poverty counties in the level of Xinjiang Uygur Autonomous Region.

According to project components in FSRs, different components will be implemented in different areas in the project city/counties. The subdistricts or towns where the components will be implemented are defined as directly affected project area (DPA). A total of 256,751 people, including about 34,533 poor (13.5% of the total population), 127,268 female residents (49.6% of

1 Including Tacheng City, Wusu City, Emin County, Tuoli County, Tumin County, Hoboksar County and Shawan County.

2 They are Tacheng City, Emin County, Tuoli County, Tumin County and Hoboksar County

Kazakhstan

Tacheng City

Emin County

Yumin County

Tuoli County

Kaza

hsta

n


8

the total population) and 120,183 ethnic minority people (46.8% of the total population), will be affected directly by the project in DPA, and they will benefited from the project due to the river rehabilitation, district heating improvement, municipal solid waste improvement, alley rehabilitation and new road network construction, as presented in Table 4 in details.

Table 4: Directly Affected Project Areas and People

No. Component Affected People(person) Directly Affected

Project Area Total Poor Ethnic Femal

1

Component I: Rehabilitation of Kalanggur

river in Tacheng

10,111 1,228 4,651 4,853 Rural residents of Axier township along the river

2


Tacheng

94,010 10,915 38,544 46,723

Partial rural residents who will move in apartment buildings in Liaota New Area and all urban inhabitants in Tacheng

3


waste management

improvement in Tacheng

Same to above

Same to above

Same to above

Same to above


4

Component I: Urban roads

and bridges in Tacheng

96,500 11,218 39,565 47,961

All rural residents in Liaota New Area and all urban inhabitants in Tacheng

5

Component II: Infrastructures and municipal

services in Emin

81,660 12,959 39,687 40,422

Rural residents in two villages and all urban inhabitants in Emin Town of Emin County

6

Component III: Infrastructures and municipal

services in Tuoli

40,750 5,675 28,321 20,334

Rural residents in three villages and all urban inhabitants in Tuoli Town of Tuoli County

7

Component IV: Infrastructures and municipal

services in Yumin

27,730 3,452 7,959 13,699

Rural residents in one village and all urban inhabitants in Halabula Town of Yumin County

Total beneficiary people

256,751 34,533 120,183 127,268

IV. SOCIAL PROFILE OF PROJECT AREAS

The social profile of the project area and Tacheng Prefecture is described in this section, including local population and its composition, income and expenditure, employment, poverty, ethnic minorities, and gender.




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A. Basic Social and Economic Characterization

Population and Its Composition. As of December 2012, Xinjiang had a population of 22.33 million, including 9.82 million of urban residents and 12.51 million of rural residents, while 0.4777 million of urban residents and 0.49 million rural residents are in Tacheng Prefecture, the urbanization rate is separately 44% in Xinjiang and 49.3% in Tacheng Prefecture.

The project area, of Tacheng City, Emin County, Tuoli County and Yumin County accounts for 37.9% of the total area of Tacheng Prefecture, while its population accounts for 50% of the total population of the Prefecture. The rural population of the project area is 0.2366 million and accounts for 48.2% of the total rural population of Tacheng Prefecture, while its non-rural population is 0.2323 million and accounts for 48.6% of the total population of the Prefecture. The urbanization rate in Tacheng City, Emin County, Tuoli County and Yumin County are 59.4%, 47.7%, 39.2% and 45.7% separately. The number of males is a little higher than the number of females in both the project area and Tacheng Prefecture. In the project area, the male population separately accounts for 50.2% in Tacheng City, 50. 5% in Emin County, 50.1% in Tuoli County and 50.6% in Yumin County, while in Tacheng Prefecture, the percentage is 50.6%. The total population of ethnic minorities in Tacheng Prefecture is about 0.4456 million, accounting for 46% of the total population. The population and its composition of the project area and Tacheng Prefecture in 2012 are presented in Table 5.

Table 5: Population and Its Composition in the Project Area and Tacheng Prefecture in 2012

Item Unit Project Area

Tacheng Prefecture

Tacheng City

Emin County

Tuoli County

Yumin County

Land Area km2 4,356.6 9,147 19,992 6,107 104,547

No. of Household HH 51,475 58,493 28,988 1,8829 324,776 Population person 153,179 163,759 97,855 54,081 968,416 Ethnic minority person 62,168 98,232 73,245 23,912 445,623 Male person 76,931 82,611 48,991 27,368 490,254 Female person 76,248 81,148 48,864 26,713 478,162 Non-rural person 91,006 78,161 38,354 24,728 477,722 Rural person 62,173 85,598 59,501 29,353 490,694

Source: Statistical Communiqué on 2013 National Economic and Social Development of Tacheng PrefectureLeader’s Handbook of Tacheng Prefecture 2013

GDP and Its Structure. In 2012, the GDP of Xinjiang reached 753 billion yuan and increased by 12%, and GDP per capita was 33,909 yuan and increased by 10.8%. The GDP of both the project area and Tacheng Prefecture increased steadily over the past three years. The GDP per capita of Tacheng City, Emin County, Tuoli County and Yumin County are lower than the average for Tacheng Prefecture, as presented in Table 6. The GDP of Tacheng Prefecture, structured by the primary, secondary and tertiary industry, is 23.5%, 45.2% and 31.3%, respectively, which shows that both manufacturing and processing industry and services industry play an important role in local economic development. However, its primary industry proportion is more than two times as its average in national GDP structure composition3, which presented the agricultural production still has much contribution to local economic situation compared with the national average. The detailed GDP and its structure in the project area and Tacheng Prefecture in 2012 is presented in Table 7.

Table 6: Increase of GDP of Project Area and Tacheng Prefecture 2010-2012

District GDP

(CNY bill) GDP

Increase GDP

(CNY bill) GDP

Increase GDP

(CNY bill) GDP

Increase GDP per Capita

3 The national GDP structure composition in 2012 was 10.1, 45.3, and 44.6% for primary, secondary and tertiary industry,

respectively.


10

In 2010 (%) In 2011 (%) In 2012 (%) (CNY) In 2012

Tacheng Prefecture

28.553 19.1 35.33 17.1 40.939 16.2 42,814

Tacheng City

4.1615 18.3 5.058 16.3 5.872 12.4 38,316

Emin County

3.524 20.1 4.232 12.7 4.774 14.7 28,938

Tuoli County

2.398 26.6 3.057 17.1 3.487 16.2 35,636

Yumin County

0.8015 16.5 0.952 12.1 1.062 10.3 19,630

Source: Statistical Communiqué on 2010-2013 National Economic and Social Development of Tacheng PrefectureLeader’s Handbook of Tacheng Prefecture 2010-2013

Table 7: GDP Structure of Project Area and Tacheng Prefecture in 2012 (CNY bill)

Item

Tacheng City Emin County Tuoli County Yumin County

GDP Structure

% GDP

Structure

% GDP

Structure

% GDP

Structure

%

GDP 5.872 100 4.774 100 3.487 100 1.062 100 Primary industry

1.077 18.34 1.34 28.07 0.428 12.27 0.367 34.56

Secondary industry

1.646 28.03 1.969 41.24 2.425 69.54 0.281 26.46

Tertiary industry

3.149 53.63 1.465 30.69 0.634 18.19 0.414 38.98

Source: Statistical Communiqué on 2013 National Economic and Social Development of Tacheng prefectureLeader’s Handbook of Tacheng Prefecture 2013

Income and Expenditure. In 2012, the Urban Disposable Income Per Capita in Tacheng Prefecture was 8,101 yuan and 1,457 yuan less than the average of China and Xinjiang, respectively; the rural net income per capita of Tacheng Prefecture was 5,157 yuan higher than the average of Xinjiang and 3,634 yuan higher than the average of China. However, the rural net income per capita of Emin, Tuoli and Yumin counties was similar to the average of China or higher than the average of Xinjiang. The detailed data is shown in Table 8.

Table 8: Per Capita Economic Indicators of Project Area and Tacheng Prefecture in 2012

Item Unit Project Area

Tacheng Prefecture

Xinjiang

China Tacheng

City Emin Tuoli Yumin

Urban Disposable Income Per Capita

yuan 16,600 15,696 14,228 14,520 16,464 17,921 24,565

Rural Net Income Per Capita

yuan 10,850 10,039 6,214 9,116 11,551 6,394 7,917

Average Wages of Staff and workers

yuan 44,741 41,196 46,190 36,999 33,461 36,048 37,760

GDP per Capita yuan 38,316 28,938 35,636 19,630 42,814 33,799 38,400 Source: Statistical Communiqué on 2013 National Economic and Social Development of Tacheng prefectureLeader’s Handbook of Tacheng Prefecture 2013

In 2012, the urban disposable income per capita in Xinjiang increased by 15.5%, and the average of household income increased by 14.5% over the previous year, while the rural net income per capita increased by 17.5% over 2011. Compared with 2011, the urban disposable


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income per capita in Tacheng Prefecture increased by 16.8%, the average wages of staff and workers increased by 21 %, while the rural net income per capita increased by 14.6%.

The increase rate of urban consumption expenditure per capita, as well as the urban disposable income per capita, of all districts in the project area was higher than that of the Xinjiang average. In 2012, urban consumption expenditure per capita in Xinjiang was 13,892 yuan, increased by 17.3%, and rural living expenditure per capita was 5,245 yuan, increased by 19.3% over the previous year. The detailed data of Tacheng Prefecture is shown in Table 9.

Table 9: Average Expenditure Per Capita of Tacheng Prefecture 2010-2012 (CNY/year)

Urban Consumption Expenditure Per

Capita (in Tacheng City)

Increase (%) Rural Living

Expenditure Per Capita

Increase (%)

2010 10,509 -- -- -- 2011 11,873 11.5 7,145 -- 2012 14,636 18.8 8,474 18.6

Source: Tacheng Prefecture Statistic Yearbook 2012

Employment. In 2012, the total number of employed people was 121,589, including 39,635 employees in primary industry, 18,251 employees in secondary industry and 63,703 employees in tertiary industry in Tacheng Prefecture. The urban registered unemployment rate was 0.99%, the unemployment was 1,613 persons including 654 women. The detailed data is shown in Table 10.

Table 10: Employment and its Distribution in Project Area in 2012 (person)

District Total

Employment

Job Position Distribution

Primary Industry Secondary

Industry Tertiary Industry

Tacheng Prefecture

121,589 39,635 18,251 63,703

Tacheng City 24,983 2,713 3,674 18,596 Emin County 23,393 13,056 2,102 8,235 Tuoli County 8,967 0 3,940 5,027 Yumin County 6,659 2,570 123 3,966

Source: Statistical Communiqué on 2010-2013 National Economic and Social Development of Tacheng PrefectureLeader’s Handbook of Tacheng Prefecture 2010-2013

Safeguards. By the end of 2012, in Tacheng Prefecture, the number of urban residents who participated in the basic pension insurance, basic health insurance and birth insurance was 122,999, 125,732 and 75,400, having increased 4.48, 2.96 and 3.61%, respectively. About CNY0.142 billion of the living safeguards subsidies for 21,620 poor urban households with 50,152 persons was distributed, while about CNY49.81 million of the living safeguards subsidies for 18,502 poor rural households with 41,930 persons was distributed. The urban guaranteed living safeguard standard was CNY140 per month for the urban residents living from January 2010, which was adjusted to CNY155 and CNY331 per month from January 2011 and from January 2013, respectively. The rural guaranteed living safeguard standard was adjusted from CNY1,720 to CNY1,912 per year in 2013. All residents who lived under the standards received these subsidies.

In Tacheng Prefecture, about CNY10.87 million of medical assistance for 5,498 urban residents, CNY7.16 million of basic medical insurance subsidies for 45,785 urban residents and CNY2.426 million of commercial medical insurance subsidies for 23,773 urban residents were distributed. CNY9.3 million of medical assistance for 4,377 rural residents, CNY2.415 million of subsidies of new rural cooperative medical system for 36,777 rural residents and CNY2.294 million of commercial medical insurance subsidies for 25,672 rural residents were distributed in 2013.


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Education. In 2012, there were 279 schools including 4 secondary technical schools, 2 adult technical schools, 4 vocational high schools, 77 ordinary middle schools and high schools, 103 primary schools and 88 kindergartens, except private kindergartens, in Tacheng Prefecture.

In Tacheng City, there were 22 primary schools with 10,536 pupils, 5 middle schools with 8,328 students, 1 vocational middle school with 101 students, 3 technical schools with 2,932 students, 1 college with 2,504 students and 12 kindergartens with 3,601 children. Percentage of enrolment of children with 6-11, 12-14 and 15-17 years old was 100%, 100% and 89%, respectively, in 2012.

In Emin County, there were 22 primary schools with 11,813 pupils, 15 middle schools with 8,863 students, 42 kindergartens with 5,340 children. Percentage of enrolment of children with 6-11, 12-14 years old was 100% and 100%, respectively, in 2012.

In Tuoli County, there were 21 kindergartens and 22 primary schools and middle schools with 14,323 pupils and students. Percentage of enrolment of children with 6-11, 12-14 and 15-17 years old was 100%, 99.82% and 97.54%, respectively, in 2012.

In Yumin County, there were 4 primary schools with 3,699 pupils, 1 junior high school with 1,696 students and 2 high schools with 645 students. Percentage of enrolment of children with 6-11, 12-14 and 15-17 years old was 100%, 70.2% and 67%, respectively, in 2012.

B. Poverty

In November 2011, Chinese Government set up a new national standard for poverty alleviation, the diagnostic limit for the rural poverty line was CNY2,300 of rural net income per capita. It increased by 92% compared with CNY1,196 of old standard in the same year. A hundred million rural people could benefit from this poverty alleviation policy. In December of the same year, the Chinese Government published Outline of Rural Poverty Alleviation and Development in China 2011-2020 and declared an integrated centre financial input for rural poverty alleviation and development would keep a substantial increase in 2012 including 20% increase of special financial funds for poverty alleviation. Fiscal appropriation and civil funds combined and investment in education, sanitation and transportation would tend to poverty regions with more support.

The PRC also has a variety of other urban poverty lines set as benchmarks below which a person is entitled to poverty relief benefits, called as Minimum Living Guarantee (MLG). Responsibility for financial assistance to the urban poor under the MLG lies primarily with the center governments. Under the MLG, each city determines and establishes its own poverty or benefits line. Poorer cities tend to use harsher definitions of poverty and richer cities more lenient definitions. In recent official statements, the Government is abbreviating its references to those receiving MLG as the “urban poor”.

Xinjiang mobilized rural MLG in July 2007. The diagnostic limit for the rural poverty line was CNY700 of rural net income per capita; 1.29 million rural poor residents were benefited. At this time, all urban and rural poor people have been incorporated into the Minimum Living Guarantee System in Xinjiang. By 2012, the rural poverty line in Xinjiang was increased to CNY2,300.

Population. Chinese Government published 592 national key poverty relief counties, including 27 counties in Xinjiang. Tuoli County is one of them in 2012. At the same time, Xinjiang Region Government determined three regional key poverty relief counties including two counties in Tacheng Prefecture. Therefore, Tacheng Prefecture has three key poverty relief counties and is the district with most poverty counties in north Xinjiang including one (1) national key poverty relief county - Tuoli and two (2) key poverty relief counties in autonomous region level - Yumin and Hoboksar. Emin County and Tacheng City are benefited from poverty relief and development policies of state and the autonomous region. There are three (3) pilot poverty relief border counties, accounting for 17.7% of the total poverty relief border counties. There are


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126 key poverty relief villages, accounting for 3.2% of the total key poverty relief villages of Xinjiang and 13.2% of the total administrative villages of Tacheng Prefecture. The above 126 villages are dispersed in 41 township including 64 border villages, 21 mountain villages and 41 plain villages. In 2013, the total poor households and population in Tacheng Prefecture was about 34,000 households and 130,000 persons, accounting for 23% of the total rural population of Tacheng Prefecture. The detailed data is presented in Table 11.

Table 11: Poverty Households and Population in Project City/counties

Project Area

Year

Urban Poverty Rural Poverty Annual

Accumulation

HHs Population

(person)

Percentage of

Population (%)

HHs Population

(person)

Percentage of Population

(%)

Tacheng City

Dec.2013

4,420 10,550 11.84 2,633 6,600 12.15 215,843

Emin County

Dec.2013

4,836 12,468 15.95 4,980 12,152 14.02 289,000

Tuoli County

Dec.2013

1,962 5,461 13.65 1,627 5,404 8.93 115,676

Yumin County

Dec.2013

1,413 3,047 12.46 2,506 3,990 13.5 84,412

Source: 2012-2013 statistical form of civil affairs bureau of Tacheng Prefecture

Minimum Living Guarantee Standard. With social and economic development, the urban MLG or lowest guarantee line has changed. Tacheng Prefecture Government (TPG) has increased the MLSS from CNY140 per month in 2010 to CNY155 per month in 2011 and CNY331 per month in 2013, as presented in Table 12. The rural lowest living safeguard standard was adjusted from CNY1,720 to CNY1,912 per year in 2013.

Table 12: Change of Guaranteed Living Safeguard Standard 2010-2013

District

2010 2011 2012 2013

Urban (CNY/

month)

Rural (CNY/ year)

Urban (CNY/

month)

Rural (CNY/ year)

Urban (CNY/

month)

Rural (CNY/ year)

Urban (CNY/

month)

Rural (CNY/ year)

Tacheng City

140 700 155 844 301 1,720 331 1,912

Emin County

140 700 155 844 301 1,720 331 1,912

Tuoli County

140 700 155 844 301 1,720 331 1,912

Yumin County

140 700 155 844 301 1,720 331 1,912

Source: 2012-2013 statistical form of civil affairs bureau of Tacheng Prefecture

Cause of Poor. The project area is located in the northwest region of Xinjiang, prior to the 1990s, due to bad relationship between China and the EX-Soviet Union, social and economic development of the border region was affected. Investment for industry, trade and tourism was limited, except traditional farming and animal husbandry. After the reform and opening, the developed east region of the PRC attracted a plenty of talent capital, the difference between the east and west in economic progress and living standard became bigger.

In the project area, half a year is cold winter season, period of crop growth and grazing is very short, and affects the agricultural production and income increase of farmers and herdsmen. And the harsh winter climate is easy to lead to natural disasters, thereby causing loss of the farming and animal husbandry.

Underdevelopment of second and tertiary industry is unable to absorb more labor force and increases income of local residents. It caused shortage of government revenue, so that the governments were unable to invest and improve infrastructure and living conditions.


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Underdeveloped economy affected education; it caused lower level of education of many minorities. They were lack of work skills and can’t be engaged in other profitable career. Many of them didn’t understand mandarin and could not leave for seeking more and better development opportunities.

Most of the urban poor are those who have lost their ability to work, laid off workers, unemployed workers, and retirees. Harsh natural living environment is also one of reasons of poverty. Of the registered 20,200 poor households and 79,900 poor people in Tacheng Prefecture, 574 persons are lonely elder, 1,530 households and 4,078 persons belong to poor families caused by disease, 408 households and 1,053 persons belong to poor disabled families.

Poverty Reduction Program. The governments of Xinjiang, Tacheng Prefecture and the counties of project area have made great strides in its effort to alleviate poverty through establishing and improving a social safeguard system, which will be suitable for the local economic development level, extending insurance coverage for people who are unable to work due to age, health, injury from work, and pregnancy, establishing and improving the guarantee mechanism for land-lost farmers and resettled people. The local governments continue the work to improve the social relief system, which is based on the urban and rural residents’ MLG system, and improve the social relief system for the aged, disabled, and poor households in the Tacheng next Five-Year Implementation Plan.

Various measures have been implemented for poverty reduction, such as policy assistance, loans, medical assistance, and education assistance. The TPG also provides financing every year for the social safeguard and employment assistance fund, as well as medical subsidies to be used for poor households.

Table 13 Financial Input for Social Safeguard from 2010 to 2012 in Tacheng Prefecture

and Project Area (million CNY

Year

Tacheng Prefecture

Tacheng City Emin County Tuoli County Yumin County

Input

Increase

(%)

Input

Increase

(%)

Input

Increase

(%)

Input

Increase

(%)

Input

Increase

(%)

2010

506.74 16.19 74.72 32.93 78.10 36.21 75.91 -0.33 68.4

4 81.54

2011

869.24 71.54 121.2

2 62.23

143.23

83.39 99.23 30.72 69.3

4 1.32

2012

1033.26

18.87 139.2

6 14.88

153.97

7.5 116.2

1 17.11

75.54

8.94

As of 2010, the TPG provided 1.17 billion CNY of poverty alleviation fund to improve rural transportation, irrigation, communication, farmland, fodder grassland, warm pens and housing; established three (3) poverty mutual funds with volume of CNY5.25 million; provided 70,000 free flocks and herds to poor farmer and herdsmen for feeding. It benefited to 78,500 households with 395,900 population and more than 62,000 poor people got over the low income poverty line.

From 2011 to 2013 in the project area, Emin County, Tuoli County and Yumin County have provided CNY441 million to assist 3,524 households with 12,896 people removing from remote and poor natural environment, CNY250 million to improve rural infrastructure, housing, succah and water saving, etc. It benefited 6,356 poor households with 22,885 persons. CNY6.27 million was provided for skill training, 39,000 poor farmer and herdsmen attended the trainings and 4,481 rural surplus labor were employed transferred, monthly income per capita increased by CNY1,500. A total of CNY410 million border poverty alleviation funds were distributed to improve production and living conditions of poor residents in the border region, all counties of the project area were benefited from the program. In recent 3 years, a total of 7,038 poor


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households with 29,115 persons have overcome poverty, accounting for 36% of all the registered poor. The participation rate of poverty people in rural cooperative medical care and pension insurance reached at 98% and 94%, respectively. All people living under poverty line enjoyed minimum subsistence allowances.

Medical assistance consists of direct medical help, subsidies of basic medical insurance, rural cooperative medical care and commercial insurance. In Tacheng Prefecture, a total of CNY20.453 million of medical assistance for 75,056 urban residents, and a total of CNY14.01 million of medical assistance for 66,826 rural residents were distributed. The detailed data of project area is in Table 14.

Table 14: Status of Medical Assistance in Project Area in 2013 (CNY/million)

District

2012 2013

Urban medical assistance

Rural medical assistance

Urban medical assistance

Rural medical assistance

person/ time

Input person/

time Input

person/ time

Input person/

time Input

Tacheng City

12,170 377 15,310 264.1 19,469 330.95 12,401 218.21

Emin County

17,998 402 16,051 269.8 21,984 430.97 28,440 329.32

Tuoli County

5,000 150 6,251 170.23 5,176 199.39 6,017 170.37

Yumin County

6,940 283 6,973 176.8 10,610 290.27 9,633 174.25

Source:Tacheng Prefecture 2012 yearbook; statistical form of labor and social safeguard bureau of Tacheng Prefecture 2012-2013.

Promotion of Employment. Improvement of the employment situation through increasing employment positions and promoting re-employment of laid-off employees is the best way to solve urban poverty. Tacheng Municipal Government arranged for and assisted 3,540 people in employment and reemployment and 7,100 people in reemployment of surplus farmers in 2012. Every household without employment realized at least one family member employment. 1,167 new business entities were established and engaged 2,917 labor forces, accounting for 35% of the total new increased employment. About CNY13.231 million of special fund were distributed, including CNY0.9333 million for 2,007 people in skill training, CNY0.5642 million for 274 people in social insurance subsidies, CNY0.3766 for 424 people in public welfare jobs and CNY0.2263 for 83 people in various trainee subsidies. From 2010 to 2012, Tacheng City carried out all kinds of more than 500 training courses and 35,000 people attended the trainings.

Emin County Government arranged for and assisted 4,700 people in employment and reemployment of laid-off workers and 17,374 people in reemployment of surplus farmers, and 4,925 jobs were newly increased in 2012. Every household without employment realized at least one family member employment. The registered urban unemployment rate was controlled below 3%.The Government provided about CNY6.68 million of Small Interest Loan to 219 laid-off workers to start their businesses and created 432 jobs. A special fund for employment was distributed, including CNY5.63 million for 6,239 people in skill training, CNY3.032 million for 1,046 people in social insurance subsidies, CNY2.506 million for 211 people in public welfare jobs and CNY3.199 million for 470 people in various trainee subsidies. Emin County carried out all kinds of 158 training courses and 7,842 people attended the trainings.

In Tuoli County, new employment positions were filled, and arranged for reemployment of laid-off or unemployed people for 3,580 people, assisted 14,600 person-times in reemployment of surplus farmers, and newly increased 3,061 jobs. 155 new business entities were established and engaged 452 labors. The registered urban unemployment rate was controlled below 3%. Every household without employment realized at least one family member employment. About CNY17.455 million of employment subsidies were distributed in 2013. 5,413 people attended all


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kinds of skill trainings held by local government.

In 2012, the Yumin County Government arranged for reemployment of laid-off or unemployed people for 2,340 people, assisted 9,972 person-times in reemployment of surplus farmers, and newly increased 3,061 jobs. Every household without employment realized at least one family member employment. The Government provided about CNY10.47 million of Small Interest Loan to laid-off workers to start a business and created 3000 jobs. The registered urban unemployment rate was controlled below 3%. About CNY12.19 million of employment subsidies were distributed, and 4,235 people attended all kinds of skill trainings held by local government.

From 2008 to 2013, in Tacheng Prefecture, a total of CNY680 million of employment subsidies were distributed. The new employment of the urban residents was 150,000 person-times, while the re-employment of the surplus farmers transferred to work in the city was 585,000 person-times. The detailed data of the unemployed in Tacheng Prefecture from 2009 to 2012 and the detailed data of the employment in the project area in 2012 are presented in Table 15 and Table 16.

Table 15: Changes of Urban Unemployed and Unemployment Rate

from 2009 to 2012 in Tacheng Prefecture

2009 2010 2011 2012

Unemployed Persons

3,249 3,123 1,183 1,613

Unemployment Rate %

2.07 1.95 0.71 0.99

Source::Tacheng Prefecture 2012 yearbook; statistical form of labor and social safeguard bureau of Tacheng Prefecture 2012.

Table 16: Improvement of Employment in Tacheng Prefecture and Project Area

District Number of Workers on

Position Increased (%)

No. of New Employment

Reemployment of Laid-off Workers

No. of Rural Extra

Laborers Transferred

Tacheng Prefecture

121,589 1.75 27,110 25,400 100,700

Tacheng City

24,983 1.24 8,335 3,540 7,100

Emin County

23,393 4.45 4,925 4,700 1,7374

Tuoli County

8,967 0.19 3,061 3,580 1,4600

Yumin County 6,659 10.76 2,432 2,340 9,972

Source: Tacheng Prefecture 2012 yearbook; statistical form of labor and social safeguard bureau of Tacheng

Prefecture 2012.

C. Ethnic Minority Groups

Population and Its Composition. The total population of ethnic minorities in Tacheng Prefecture is about 445,600, accounting for 45.8% of the total population according to the population statistic of Tacheng Prefeture in 2011. The ethnic minorities with a population of more than 10,000 persons are Kazak (264,421), Hui (80,007), Uygur (41,878), and Mongol (34,406). The minorities with more than 1,000 to 10,000 persons are Daur (5,350), Russian (3,506), Khalkhas (2,151) and Xibe (1,990) nationalities. The other minorities with more than 100 to 1,000 persons are Man (814), Tatar (505), and Uzbek (405) nationalities. In addition, the other minorities distributed sporadically are Tadzhik, Salar, Ewenki, Tujia, Zhuang and Miao


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nationalities. The top seven minorities in the Project area and Tacheng Prefecture based on the last census are presented in Table 17.

Table 17: Population of Main Ethnic Minorities in Project Area and Tacheng Prefecture in 2011(person)

District Kazak Hui Mongolia Uygur Daur Russian Xibe

Tacheng Prefecture

264,421 80,077 34,406 41,878 5,350 3,506 1,990

Tacheng City 26,723 13,201 1,824 5,122 5,167 2,379 1,520 Emin County 74,823 7,339 6,194 8,084 60 585 91 Tuoli County 70,376 1,102 528 1,268 9 19 63 Yumin County 18,365 3,704 146 181 37 236 59

Source: Xinjiang and Tacheng Prefecture Statistic Yearbook 2012; Annual reports of Tacheng Nationality and Religious Affairs Committee

Ethnic Minoroity Groups in DPA. In Tacheng City, the project will affect directly Ergong Township and Axier Township. Ergong Township is suburban area around the city and has about 32,000 residents. Seven villages of Ergong Township are affected directly by project, and they have 390 households with 1,048 people of ethnic minorities, account for 3.3% of total population of the township. The main ethnic minorities are Kazak, Hui, Mongol, Uygur, Dongxiang and Khalkhas, etc, and the others are Han nationality. Axier Township is the only one township of Daur nationality in Xinjiang with 20 villages and a population of about 10,111 persons including Daur nationality of 2,178 persons, accounting for 20.7% of the total population of the township, and the others are Han, Kazak, Hui, Mongol, Uygur, etc. The Daur nationality was removed from Heilongjiang Province of northeast of the PRC in eighteenth centuries and believed in Shamanism. Farming is their main mode of production.

The Emin Component of the project will affect directly two townships, Emin Town and Jiaodong Township. Emin Town has ethnic minorities with a population of 19,570 persons, according for 48.5% of the total population of the town. Jiaodong Township has ethnic minorities with a population of 8,658 persons, according for 48.7% of the total population of the Township. Kazak, Hui, Mongol and Uygur are the main ethnic minority groups.

The Tuoli Component of the project will affect directly two townships, Tuoli Town and Duolate Township. Tuoli Town has 14,300 residents of ethnic minorities, according for 62% of the total population of the town. Duolate Township has 12,450 residents of ethnic minorities, according for 83% of the total population of the township. Kazak accounts for the most population in the two townships.

The Yumin Component of the project will affect directly two townships, Halabula Town and Halabula Township. Halabula town has ethnic minorities with a population of 4,724 persons, according for 34% of the total population of the town. Halabula Township has 1,675 residents of ethnic minorities, according for 20% of the total population of the township. Kazak and Hui are the main ethnic minority groups.

Living Conditions. In Tacheng Prefecture, various minorities are living together in different towns like those in other parts of Xinjiang. In farming area, the main residents are Han, Hui and Uygur while Kazak and Mongol are the main residents in pastoral areas according to their mode of production. All ethnic groups respect their religious and life habit each other. All support policies of the centre government and provincial governments for poverty alleviation and border development benefit really to all ethnic minorities. Local governments have provided many subsidies for bilingual education, employment promotion and skill training. About 47.0% of beneficiaries in DPA are minority people.

The ethnic minority people who live in the area are gathered and have no difference in living standards from other people according to the Tacheng Nationality and Religious Affairs Committee. Local governments understand that low economy levels will affect education development, which would cause lower level of education of many minorities. Minority people


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are lack of work skills and difficult to be engaged in other profitable career. Some of them don’t understand mandarin and could not leave for seeking more and better development opportunities in urban areas. Therefore, local governments have token many measures to improve education of ethnic minority people, provide housing for herdsmen with better facilities and promote employment and production of ethnic minority people.

D. Gender Development

Population. About 478,162 female residents are living in Tacheng Prefecture, accounting for 49.4% of the total population of the prefecture. In the four project city/counties there are 232,973 female residents, accounting for 49.7% of the total population of the city/counties, as presented in Table 5. In the DPA, there is a total of 127,268 female residents, accounting for 49.3% of the total population in the area. They will be affected directly from the project.

Basic Situation. With the social and economic development of Xinjiang, more and more women including minority women have participated in the social economic activities. All girls can receive the nine-year compulsory education now. According to the central government’s policy supporting to Xinjiang, and the 12-year compulsory education will start to be implemented in southern Xinjiang from 2014 and will be implemented in whole Xinjiang in near future, which will play a great promoting role in improving the Xinjiang minority female’s position in social and economic development. In Tacheng project area, most of the urban female has already obtained employment. In the rural area, female in farming and pastoral fields are directly engaged in the production activities.

Governments’ Actions and Achievements. To improve the female's economic and social situation, the governments of Xinjiang, Tacheng Prefecture and the project city/counties have formulated the women and children development plans and the women's poverty alleviation policies. In addition, based on the different needs of different groups of women, the governments and women's federation have carried out a variety of trainings to improve women's self-development capacity. The main actions and achievements in Tacheng Prefecture are summarized as follows:

(1) Female development and women's poverty alleviation fund support. In 2011, totally CNY38.235 million of small-sum secured loans were distributed to 752 women in Tacheng Prefecture and the women development project fund is CNY2.468 million; in 2012, the small-sum secured loans has exceeded CNY0.7billion that is among the top of Xinjiang Uygur autonomous region, while 15,050 women got the loans. In 2013, more than CNY1.7 million of female development support fund was distributed.

(2) Women's skill training and employment support. In 2011, 22 034 women took the skills training and 1,011 women got the business start-up trainings with 203 of them set up their own business successfully. 8,212 jobs were provided to the female, and about 2,000 women has reached the agreement with the employers; in 2012, more than 120,000 women received the trainings, around 8,000 women got the business start-up trainings with 1,000 of them set up their own business successfully, and nearly 3,000 women got the job; in 2013, 908 courses of trainings were provided for 190,000 women (times), and 10,852 women obtained the occupation qualification certificate and 10,415 women was in employment. 66 professional women’s associations were established.

(3) Women's health care. In 2011, 6,480 women got the free gynecological examination, 86 lectures on health were held, more than 4,000 women received the health education; in 2012, 22,000 rural women took the free examination on cervical cancer and breast cancer. 2,800 women (times) had the free diagnosis.

(4) Training to women cadres and construction of women's activity places. In 2011, 9 training classes were held to women cadres, 864 communities and villages have


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built “Women’s Home”; in 2012, there are 2,613 women cadres at the county and township levels. In 2013, women’s federation cadres training courses were held in the region, county, and township level for 159 people; the Eleventh Women Cadres Training Class was held with local organization department, training 50 women cadres; 157 village women’s committee directors were organized to participate the training in the mainland and autonomous region.

In the project city/counties, all the poor women have been incorporated into the lowest life guarantee system with medical treatment provided by medical aid fund. The government also provides various subsidies and preferential policies to improve housing, drinking water, education and poverty alleviation.

V. PUBLIC PARTICPATION AND SURVEY FINDINGS

A. Public Participation during Project Preparation

Many public participation and consultations related to the project scope, design and possible impacts, such as meeting and discussion on the project contents, design options, social impact and risks, land acquisition and resettlement, and environment assessment, were held during the PPTA. Several community participation and public awareness activities were conducted to understand local residents’ and the communities’ opinions and concerns on the Project design and implementation plan. More than 17 local communities, 486 households, and 188 residents participated in the public consultation. In addition, discussions on the project impacts with village committees, relevant local government departments and other stakeholders were held during the PPTA.

More than 20 villages and 10 government departments and stakeholders participated in the discussion. About 1,100 people, including about 450 women and 500 ethnic minority residents participated in the public consultation for the project preparation. Their opinions, concerns and suggestions are incorporated into the project design.

B. Summary of Survey Findings

The HS was conducted in the project area and FGDs were carried out in communities of the project area. Local residents’ understanding on the project and their comments and concerns on the project were discussed during the survey and FGDs. Based on the survey and FGDs, the project impacts are identified.

Understanding of the project. According the HS, 32.6% of the respondents in Tacheng City, 18.2% of the respondents in Emin County, 21.8% of the respondents in Tuoli County and 16.4% of the respondents in Yumin County did not know of the proposed project at all. Most of the respondents have known the project information from village/community committees. FGD results showed that 98% of the participants expressed their support to the project after being told the basic components of the project.

Housing. The households have average house-ownership rates of 87%, and 64% of the households take living area of over 80m2. In Tacheng city, 53.5% of surveyed families have independent housing, and in Emin, Tuoli and Yumin counties, this rate is about 90% on average.

River Rehabilitation. All FGD participants in Axier Township thought they will be direct beneficiaries of the river rehabilitation. 100% of the respondents believe that they will benefit from the river rehabilitation in (i) reducing agricultural production loss due to potential flood risks of the Kalanggur River; (ii) promoting tourists to visit to Axier Township as a Daur nationality township in Xinjiang and increasing tourism income of the township; (iii) improving living environment and eco-environment on embanks of the river; and (iv) improving traffic conditions cross the river.


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District Heating. In the survey area of Tacheng City, 53.5% of respondents now are using house coal stoves for heating. 94% of respondents who are using house coal stoves are willing to change for the district heating in order to improve comfort level and living quality in winter, especially benefits for women are reducing housework, better study conditions for children, more leisure time and reducing disease incidence of family members. However, 38% of the respondents expressed that the heating price is too expensive. Many respondents thought that the higher heating access charge is the main reason for many families to give up the district heating. 70.4% of respondents who are using the urban district heating are not satisfied with the current heating service. The heating equipment aging is an important reason caused the service problems.

Solid Waste Management. 28.5% of the respondents are quite satisfied and 40.2% of the respondents are not satisfied with urban sanitation. 59.8% of the respondents are not satisfied with complain mechanism about environmental sanitation. The satisfaction of solid waste management is shown in Table 18.

Table 18: Satisfaction of Solid Waste Management

Solid Waste Management Satisfied

(%) No

comments (%) Not satisfied

(%)

Amount of trash bins 33.9 31 35 Distance to trash bins 35.5 33.5 30.7 Solid waste collection 24 45 31.5 Garbage transport 41 31 27.7 Garbage disposal 41.4 30 27

Daily street-sweeping 36 38 25

Street watering 26.3 36.5 35

Snow removal in winter 30 30 39.4

Date Source: Household Survey Report

All the respondents put the kitchen wastes into the dustbin or dumping place, and the paper, metal, glass, rubber and plastic wastes will be collected for sale. 71% of respondents don't know about the 3R, and 25% of them are willing to learn more about 3R and try to follow it. However, FGDs showed different results. All participants support the reduction, recycling and reusing solid wastes after detailed introduction of 3R principle. 97% of respondents agreed that everyone should play an important role in community waste management; 78% of them agreed to carry out the environmental education in the community; 75% of them thought that the local government didn't take enough effort on the waste treatment, and they support for the establishment of official rewards and punishment system, which will facilitate the different waste classification and collection in the household. All respondents prefer free or pay less on solid waste collection and disposal fee to maintain daily construction and facilities operations.

Public Transport and Traffic Safety. The surveys and all the FGDs related to the urban infrastructure development were carried out in the neighborhoods in or near the road subproject sites in Tacheng City, Emin County, Tuoli County and Yumin County, respectively. All the respondents and FGD participants will be the direct beneficiaries of the urban road network.

(1) Satisfaction. Most respondents are quite satisfied with the present transportation situation of the project city/counties. Some of them expressed their discontent to bad condition of lane roads of the neighborhoods near the proposed road construction sites. 58.8% of the respondents in Emin are not satisfied with the traffic situation at all. In Tacheng, Tuoli and Yumin, this figure is 29%,11.5% and 10.9%, respectively.

(2) Transport mode. The walking, bicycling and motorcycling are the top three transport modes and only less than 10% of residents take bus in four project city/counties. This is because urban areas are small and people only spend 5 to 15


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min on the way to work, school and shopping. All respondents hope for improving public traffic and reducing traffic safety risks of motorcycling.

(3) Major Traffic Issues. Sorted by selecting proportion, mix of motorized and non-motorized traffic, lack of sidewalks for pedestrians, lack of bicycle lanes, jaywalking, bad road conditions and indiscriminate parking are considered major problems by respondents. It is found that Tacheng City has more traffic problems than that in Emin, Tuoli and Yumin due to its bigger size of city and population. More details are presented in Table 19. Different groups like the poor and non-poor, Han and non-Han, male and female don’t have much difference on this subject. As for traffic problems need to be solved, bad road condition and lack of public transport are identified priorities. Non-poor choose road condition as the top priority, and the poor choose public transport as the top priority.

Table 19: Major Traffic Issues in Project City/Counties

Major Traffic Issues Tacheng Emin Tuoli Yumin

Ranking % Ranking % Ranking % Ranking %

Difficult for pedestrians to cross the road

4 13.04 4 9.6 7 4.6 3 12.7

Lack of traffic signs/lights 5 8.26 4 9.2 4 9.1 Jaywalking 1 20.87 6 5.3 5 4.6 2 18.2 Indiscriminate parking 3 14.35 3 11.4 3 10.3 5 7.3 Mix of motorized and non-motorized traffic

6 8.26 7 5.3 8 1.1 10 1.8

Bad Road conditions 2 18.26 1 26.3 2 17.2 1 29.1 Conditions of sidewalks are poor/pot-holes for pedestrians

7 4.35 6 4.6 7 5.5

Lack of sidewalks for pedestrians

9 2.17 8 5.3 9 1.1 8 3.6

Lack of bicycle lanes 10 0.87 10 1.8 10 1.1 11 1.8 Poor street lighting 8 3.48 2 14 5 9.2 9 3.6 Frequent traffic jams 11 0.87 9 4.4 Lack of public transport 5 7 1 34.5 6 7.3 Date Source: Household Survey Report.

(4) Traffic Safety Risks. Weakness of public awareness, indiscriminate parking, bad situation of non-vehicle lane, poor traffic lightning and mix of non-motor with motor lane are considered the top risks that cause traffic safety problems in the project counties/city (see Table 20). In Emin and Yumin, bikes and vehicles often share the same lane due to the narrow roads and lack of non-vehicle lane. Overall, the traffic safety risk is more serious since urban residents in small cities have less traffic safety awareness. Other traffic safety issues like lightning and poor non-vehicle lane will not be the safety risk in newly built districts either.

Table 20: Traffic Safety Risk Survey Result

Traffic Safety Risk Tacheng Emin Tuoli Yumin


Lack of traffic safety propaganda

5 60.5 9 39.5 12 9.2 5 38.1

Public awareness is not strong 1 79.6 2 68.4 3 35.6 1 56.4 Indiscriminate parking 2 78.3 3 68.4 2 39 2 52.7 Mix of sidewalk with motor lane 3 71.8 6 64.9 7 27.5 6 36.4 Lack of necessary traffic lights 7 53.5 7 56.1 4 32.1 9 30.9 Lack of traffic marks and signs 8 51.3 8 50.9 6 28.7 7 32.8 Over speed of vehicles 10 24.3 10 24.5 10 14.9 10 12.7 Lack of non-vehicle lane 6 60 4 66.7 8 26.4 4 38.2 The situation of non-vehicle lane is poor

4 65.6 1 84.2 5 29.9 3 45.5



22

Traffic Lightning is not good 9 41.3 5 66.6 1 50.6 8 32.7 Drunk driving 12 13.1 12 21.9 11 11.4 12 1.8 Lack of traffic policeman 11 20 11 22.8 9 17.2 11 7.3 Date Source: Household Survey Report

VI. PROJECT IMPACT ANALYSIS

A. Project Beneficiaries

The project beneficiaries include (i) local governments; (ii) relevant government management departments; (iii) relevant companies; and (iv) local residents including ethnic minority, female and poor people.

The governments of Tacheng Prefecture, Tacheng City, Emin County, Tuoli County and Yumin County will benefit from the project because they receive financial support from ADB to implement their infrastructural construction required my local master plans.

Relevant government management departments of the project city/counties, such as development and reform commission, PMOs, bureaus of construction, finance, environment protection, water affairs, and traffic police, etc, will benefit from the project by public facility construction and management, knowledge transfer and training.

Relevant companies, such as heating supply services, solid waste management, water supply, sewer water treatment, and road management and maintenance, etc, will benefit from the project by expansion of service areas, increase fix asset and revenue after the project construction completion.

The project will benefit all residents in the DPA. According to project components in FSRs, in the project city/counties, all urban residents and some rural residents in a total of 256,751 people, including about 34,533 poor (13.5% of the total population), 127,268 female residents (49.6% of the total population) and 120,183 ethnic minority people (46.8% of the total population), will benefit directly from better access municipal services and enjoy the improved living environment and business conditions of the project.

In addition, all residents in the project city/counties will benefit indirectly from the project by promoting local social and economic development. According to Table 5, a total of 0.4689 million residents in Tacheng City, Emin County, Tuoli County and Yumin County, including 0.2576 million ethnic minority (54.9% of the total), 0.2330 million female (49.7% of the total), 0.2366 million rural people (50.5% of the total), will benefit from the project.

Main Benefits. The direct outputs of the project will be river rehabilitation, new urban road networks, traffic conditions, district heating and environmental sanitation improved, which will generate a number of consequent benefits. In addition, the project will stress public awareness propaganda on 3R solid waste management to use resource effectively and traffic safety management to reduce traffic safety risk. The IAs and local governments should pay attention to the public awareness education and have a detailed program to conduct in communities and schools. The general benefits of the project include:

(1) Better ecology environment and leisure place. After rehabilitation of the Kalangguer River, not only flood risk of the river will be controlled, but also a better ecology environment and leisure place on both sides of the river bank will be created, which will attract more local residents to spend their leisure time in the nice environment and also promote local tourism development.

(2) Better heating services will increase living standard of local residents, improve air quality and reduce health risks and housework of female;




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(3) Better solid waste management services based on 3R principles will reduce urban environmental pollution and reduce health risks of local residents, and effectively use resources. They can enjoy clear and comfortable living environment;

(4) Better access to new development areas. Currently, the traffic conditions in the project areas are all undeveloped, and the construction areas are still farmlands and rural residential places. The proposed urban road networks will link the new districts and the existing urban towns together and expand the cities;

(5) More public transport services. Along with road network improvement and urbanization, local governments will provide public transportation services in the new development areas. Local residents, especially the residents living near the new districts will enjoy more convenient public traffic;

(6) Reducing traffic safety risk. Sidewalks, traffic lights, street lights, non-motorized vehicle lanes and traffic management systems have been included in the subproject designs. All of these could enable pedestrians and cyclists enjoy safer walking and biking. Accordingly, traffic accidents will be reduced; and

(7) Promoting regional economic growth and urbanization. Improved local infrastructural facilities, more convenient traffic and municipal services, improved living conditions and environments will promote urbanization and regional economic growth in the project areas, and expand employment opportunities and consumption demand as well.

B. Employment Generation

Employment will be generated during the project construction and in the operation of project facilities. According to the FSRs, about 25,727 person-months with a total gross income of CNY 75.8993 million during the project construction will be generated by the Project, while during the operation phase, 234 full time positions with CNY 8.149 million annual gross income will be generated directly by the Project. In addition, about 38,592 person-months with CNY 96.4769 million gross income will be generated indirectly by the Project. The detailed employment generation and income earning are presented in Tables 21 to 24.

Table 21: Employment Generation during the Project Construction Period (person-month)

Project Component

Direct Indirect Total

Tech/Manager Skill Unskilled Subtotal Tacheng

City 1,756 3,911 11,892 17,559 26,339 43,898

Emin County

319 702 2,170 3,191 4,787 7,978

Tuoli County

311 664 2,135 3,110 4,665 7,775

Yumin County

187 414 1,267 1,867 2,801 4,668

Total 2,573 5,691 17,464 25,727 38,592 64,318

Table 22: Income from New Jobs during the Project Construction Period (million CNY)

Project Component

Direct Indirect Total

Tech/Manager Skill Unskilled Subtotal Tacheng

City 6.7124 12.6743 33.2988 52.6855 65.8470 118.5325

Emin County

1.1552 2.1320 5.6414 8.9286 11.9663 20.8949

Tuoli County

1.1860 2.1414 5.9779 9.3053 11.6621 20.9674

Yumin 0.6387 1.1748 3.1664 4.9799 7.0015 11.9814


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County Total 9.6923 18.1224 48.0845 75.8993 96.4769 172.3762

Table 23: Employment Generation during the Project Operation Period (Job Position)

Project Component Tech/Manager Skill Unskilled Total

Tacheng City 17 64 94 175 Emin County 3 7 20 30 Tuoli County 1 2 11 14

Yumin County 1 7 7 15 Total 22 80 132 234

Table 24: Income from New Jobs during the Project Operation Period (million CNY)

Project Component Tech/Manager Skill Unskilled Total

Tacheng City 0.765 2.688 2.82 6.273 Emin County 0.123 0.28 0.56 0.963 Tuoli County 0.046 0.084 0.319 0.449

Yumin County 0.037 0.245 0.182 0.464 Total 0.971 3.297 3.881 8.149

C. Willingness to Pay and Affordability

When respondents were asked if they would be prepared to pay more for district heating considering that the cost of heating services had increased; 39% of respondents agreed to pay CNY 20/m2, 16% of respondents agreed to pay CNY24/m2, while others felt the existing price should be retained. In Xinjiang and Tacheng Prefecture, the current heating price includes subsidy from government.

According to the survey results, average payment per household (using whether district heating or house coal stove) in one heating season is CNY 1,850, accounting for 4.6% of average annual income of the respondents. For low-income households, the heating cost per heating season is about CNY 1,320, accounting for 13.7% of income based on MLG. Local government provide MLG families and low income families with heating subsidies according to their real situation, poor families don’t need to pay or pay less than 20% for heating services. Therefore, the heating cost accounts for less than 2.73% of total income of low-income households.

When was asked how much they like to pay for solid waste collection and disposal, most respondents selected the smallest value in a list of the price designed in the questionnaires. 46.5% of respondents like to pay CNY10 per month, while 28.7% of respondents like to pay CNY 15-20 per month. All respondents from villages support solid waste management program and will pay same money as urban residents. In Tacheng City, urban residents should pay CNY 2.5 per month/person, which is accounted for less than 1% of annual income of low-income households. Currently, MLG households should pay half. However, they still hope a stabile service fee for environmental sanitation.

D. Impacts on Poverty

According to the HS in the project area, in Tacheng city, 50% of the households have an annual household income less than CNY40,000, and this amount is less than CNY35,000 for Emin county, less than CNY26,000 in Tuoli county and below CNY39,000 in Yumin county. 26.5% households in Tacheng City, 30% households in Emin County, 31% households in Tuoli County and 29% households in Yumin County received the basic cost of living allowance. The survey results show that 70% households in the project area has relatively good living conditions and basic living facilities, which the tap water, TV and communication facilities are widely used. The urban families normally have washing machine, independent kitchen, sanitary and bath facilities, centralized heating etc. The rest 30% households belong to poor families with poor


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living conditions, and this ratio is higher than the average level in Tacheng Prefecture.

The environmental improvement through this project implementation will promote the urban development, and also take the opportunity to improve the living conditions of this part of households. However, the possibility can't be ruled out that the urban environment improvement by the project will substantially increase the living cost, resulting in an even harder living condition of the poor families. Therefore, paying special attention to this part of households in the project area and taking concrete and feasible measures to help them improve their poverty will have a significant meaning to reduce the poverty in Tacheng Prefecture.

E. Impacts on Ethnic Minority Groups

The socio-economic status of the ethnic minorities and gender are analyzed based on available data and information, and the results of the household survey and FGDs.

The river rehabilitation subproject of Component I of the project will improve living environment and eco-environment condition and flood risks for agriculture production of Axier Township. The environment improvement will attract urban residents to the villages for tourism and leisure, to create new jobs for local people. Women can generate the income by opening “Rural Home Inns” and stores. Axier Township established a Daur Nationality Museum in 2012 to develop the Daur characteristic tourism and increase income of local residents. They believe that the project will improve environment of both embanks of the Kalanggur River and attract more and more people to the river for leisure or exercises, which will promote more and more people to visit the Daur Nationality Museum and increase the Daur characteristic tourism income of the town.

The district heating subproject of Component I of the project will improve the heating services for urban residents who are using different district heating services now by providing a steady and better heating source. In addition, some rural residents in the Liaota New Area will use the heating services after they move into new resettlement apartment buildings and will not use household heating stoves. The heating services will improve local air quality by replacing household heating stoves that burn coal or waste straw without any emission control. The heating services also will provide the new users more comfort level, better living quality and safety in winter, especially benefits for affected women by reducing housework burden, better study conditions for children, more leisure time and reducing disease incidence of family members. Both ethnic minority and Han residents like to use the district heating services. However, some of them concern cost for the heating services. They hope the cost is lower than the cost they are using the household heating stoves, or not much higher. For poor families, they hope the government can provide some heating subsidies to them for the district heating services.

The solid waste management subproject of Component I of the project will improve public sanitation environment in the developed urban area of Tacheng City and newly developing urban area of the Liaota New Area. Both ethnic minority and Han residents will benefit from better living environment. By introducing the 2-bins system, the subproject will promote municipal garbage sorting based on 3R principle, which will benefit garbage recycle and reuse and saving land used for landfill in Tacheng City. Due to the urban solid waste management is different from rural solid waste management, current rural residents in the Liaota New Area need to change their garbage collection and dispose behavior after the project construction. They need to follow requirements for the urban solid waste management, and need to pay the garbage treatment fee. There is no difference in the solid waste management for ethnic minority and Han residents.

The road network construction subproject of Component I of the project in the Laiota New Area will change the existing rural road system totally. The current rural road network will be changed to urban road system. Both road conditions and traffic management will be improved


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largely. Both local ethnic minority and Han residents will benefit from better road pavement, separate motor vehicle land, non-motor vehicle land and sidewalk, lighting, traffic safety management system, etc of the subproject. The rural residents need to change their traffic behavior to meet requirement for urban road traffic management. There is no difference in traffic behavior for local ethnic minority and Han people.

The Emin Component of the project will improve urban traffic and reduce traffic risks. The project urban road networks will link a new area and the existing urban towns together and expand the Emin County. Convenient traffic and municipal services, improved living conditions and environments will promote urbanization and regional economic growth in the county, and expand employment opportunities and consumption demand as well. Reconstruction of the existing roads by renewing pavement of both motor land and sidewalk will improve current traffic conditions largely, and benefit business operation on both sides of the roads for both ethnic minority and Han people. It also will improve traffic conditions of local residents. Construction of the project new roads will meet the need of urban space development and promote local economic development of the county, which will create more employment opportunity for local residents of both ethnic minority groups and Han. Improvement of the road conditions will increase traffic flow, especially for Alxiate road. Two schools are located on both sides of the road, so more attention must be paid to avoid the traffic risk when students go to school or back home.

The Tuoli Component will construct an out ring road in the county. The out ring road construction and improvement of traffic management will reduce traffic flow on the existing provincial road and accidents caused by the existing road that pass through the urban area of the county, and improve traffic condition of the county. In addition, the new out ring road will pass near two villages. The villagers’ traffic will be improved largely. However, the villagers’ traffic behavior has to be changed from current traffic on rural roads to traffic on urban primary road, especially for motor bicycle riders as mentioned by local residents. Agricultural machinery and livestock across the road should be considered during the road design and construction. Necessary household education or propaganda on traffic safety should be conducted before the road operation in order to reduce traffic accidents occurred on the road.

The Yumin Component will construct new roads and rehabilitation of three existing roads in the county. Residents of Yumin Township will benefit from convenient traffic and municipal services, improved living conditions and environments after completion of the project. Convenient traffic and municipal services, improved living conditions and environments will promote urbanization and regional economic growth in the county. Reconstruction of the existing roads by renewing pavement of both motor land and sidewalk will improve current traffic conditions largely, and benefit business operation on both sides of the roads for both ethnic minority and Han people. It also will improve traffic conditions of local residents. Construction of the project new roads will meet the need of urban space expansion and promote local economic development of the county, which will create more employment opportunity for local residents of both ethnic minority groups and Han.

In the four project city/counties, ethnic minorities and Han nationality live together in the same society. The project impacts, whether positive or negative, are the same to both ethnic minority and Han residents. There is no special difference in the project impacts for different nationalities.

F. Impacts on Gender

During the FGDs, all participants in Tacheng City agreed that the project construction can improve the living environment to help them save money on household heating stoves and save housework time on daily room clean in winter. Living environment improvement and stable heating supply will reduce the sick incidence of family members, thus reducing the women’s time to take care of the sick family member. Saving time in the room clean and taking care of


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the sick family members can reduce their fatigue, so that they have more time to do other interesting things and works.

Most of women support the solid waste management system based on 3R principles. They understand the significance of the 3R system, but they think it should not be too complicated. The 2-bins system is good for them because it will not take more time in sorting garbage at home. In fact, most of women have sorted household garbage for many years. They try to collect all kinds of recyclable garbage such as paper (books, magazines, boxes, etc), glass and plastic bins, etc and sell them to local waste recycling stations.

For the villages near the urban areas, the traffic conditions and environment improvement by the Project will attract urban resident to the village for tourism and leisure, to create new jobs. The participants from the village believe that women can generate the income by opening “Rural Home Inns” and stores.

Female residents who have no fix jobs now are interested in participating in project construction and operation to increase their income. They hope to have a stable job and work for some long time and keep a stable income. They like to receive such employment information and also like to receive relevant skill training to better job positions.

Female residents concern traffic safety more than male residents for newly constructed roads. They hope governments can take necessary measures for traffic safety management and ensure traffic safety of local residents, especially during the early stage after commencement of the new road operation.

Women (particularly poor women) pay more attention to the heating rates and sanitation management fee than men, as women in most of families control the daily living expenses. They expect the government to maintain the current charges without change, but also agree to the reasonable increase in price by obtaining the resident understanding in advance. The women from poor family hope the government considering price hike not to increase their burden.

G. Impacts on Land Acquisition and Resettlement and Environment

The project will involve land acquisition and resettlement (LAR) in the DPA. The total permanent land acquisition is 2,955 mu, including 1,481 stated land and 1,474 mu collective land. Total house/building demolition area is 91,001 m2, including residential houses of 45,620 m2, rural sheds of 27,620 m2 and small shops/institution buildings of 11,761 m2. A total of 2,428 persons from 684 households are affected, including 259 households affected only by land acquisition, 242 households only by house demolition, and 29 households by both.

Some ethnic minority residents are affected by the LAR. Each project city/county has prepared a resettlement plan (RP) to address the LAR. Detail measures for compensations and restoration for affected people including ethnic minority people have been prepared in the RPs. In addition, due to civil work construction of the project, currently nature environment in the DPA will be affected. Environment impacts are assessed and an environment management plan (EMP) is prepared to address mitigation measures for potential environment impacts of the project.

H. Summary of Impacts and Benefits

River Rehabilitation. All respondents thought they will be direct beneficiaries of the river rehabilitation and believe the river rehabilitation will (i) reduce agricultural production loss due to potential flood risks of the Kalanggur River; (ii) promote tourists to visit to Axier Township as a Daur nationality township in Xinjiang and increasing tourism income of the township; (iii) improve living environment and eco-environment on embanks of the river; and (iv) improve traffic conditions cross the river. The project has no significant negative impact on local


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residents.

District Heating. District heating will improve comfort level and living quality in winter, especially benefits for women are reducing housework, better study conditions for children, more leisure time and reducing disease incidence of family members. Many respondents expressed the heating access charge is higher and improvement of heating may cause price hike to increase their burden, especially for poor families.

Solid Waste Management. Solid waste management will improve urban environment, living condition and life quality. Many respondents support the reduction, recycling and reusing solid wastes after detailed introduction of 3R principle. Environment awareness can be increased through implementation of solid waste management system.

Public Transport and Traffic Safety. According to the survey results, all of the respondents believe new road network and traffic management will improve urban infrastructure, traffic condition and living environment. For any potential problems in the project construction, air and noise pollution, inconvenience for livestock moving from one field to another are their main concerns.

VII. PUBLIC AWARENESS AND ACTION PLANS

A. Public Consultation and Awareness Plan

According to the HS and FGDs, further public consultation and awareness on (i) urban solid waste management, (ii) traffic safety management, and (iii) project implementation schedule plan should be conducted during the project implementation. A detail public consultation and awareness plan will be prepared by the TPMO with support of a social development and gender specialist at early stage of the project implementation. The main points to be contained in the plan include as follows.

Urban solid waste management. (i) Brief introduction of urban solid waste management procedures, input, cost and impact on environment and communities; (ii) why we need to conduct 3Rs; (iii) how to do 3Rs from households to landfill and solid waste treatment centers; (iv) who play important roles during 3Rs implementation; (v) detail actions to be conducted in local communities and primary and middle schools; (vi) budget for the public awareness; (vii) implementation schedule; and (viii) monitoring and evaluation, and reporting.

Traffic safety management. (i) Brief introduction of local traffic safety status in the past three years; (ii) what are included in traffic safety management, and how relevant government departments to manage local traffic safety; (iii) why we need to address traffic safety, difference of urban traffic from rural traffic; (iv) how to improve traffic safety from personal travel behavior, to households and school education; (v) who play important roles in traffic safety management; (vi) detail actions to be conducted in local primary and middle schools, and communities directly affected by the project; (vii) budget for the public awareness; (viii) implementation schedule; and (ix) monitoring and evaluation, and reporting.

Project implementation schedule plan. (i) Brief introduction of the project; (ii) project influence scope during construction; (iii) detail civil work construction schedule; (iv) detail measures for residents traffic and business operation, safety and environment mitigation; (v) appeal mechanism and detail contact information; and (vi) residence organization of contractors, supervisors, and implementation unit.

The public consultation and awareness plans are required in a social action plan (SAP) that is prepared as one of core documents of the project. A social and gender specialist will be recruited to support the TPMO to develop the public consultation and awareness plans during the project implementation. The SAP is prepared jointly by the TPMO and the involved local governments, with the assistance of the PPTA social experts. The SAP was reviewed by key




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stakeholders including bureaus of construction, labor resource and social security, education, traffic policy, poverty, ethnic minority and women’s federation of Tacheng Prefecture and four project city/counties. Their input has been valuable in the preparation of the SAP.

B. Social Action Plan

A social action plan (SAP) is prepared to ensure that important social and poverty issues are addressed during project implementation, which is designed to enhance project benefits and mitigate any likely negative impacts. Any adverse impacts need to be avoided or mitigated, and project benefits should be inclusive of vulnerable groups (i.e., the poor, women, and others). The SAP emphasizes social inclusion and equitable access to the new economy, and gender-specific measures are also included in the resettlement plans, and gender action plan (GAP). The SAP will be implemented by the four PIUs with support of a social development and gender specialist who will be one of members of a consulting team for the project management. The PMOs will supervise the SAP implementation.

C. Gender Action Plan

A total of 127,268 female residents (49.6% of the total population) will benefit directly from better access municipal services and enjoy the improved living environment and business conditions of the project. Extensive consultation and gender analysis was conducted during the poverty and social assessment survey. The assessment indicated that women strongly support the project and are affected by currently unsatisfied heating services, dirty solid waste collection environment, and poor mobility and access. Women are generally burdened with family and household responsibility, and are employed in low-paying jobs. Improving heating services by providing a stable district heating will benefit women by relieving women’s time in running household heating stoves and enjoying better living conditions. Improving community waste collection environment by community-based 3R waste sorting with 2 bin system will benefit women by reducing illness and associated time and cost burdens. Improving transportation by establishing road network and public transport, pedestrian and non-motorized transport will benefit women by increasing access, mobility and safety; reducing time and cost burdens, and caring family daily life efficiently. Women will benefit by employment priority during the project implementation and operation. Women’s participation in public hearings, 3R waste sorting program design, public transport service and road safety program, and relevant public awareness activities will strengthen effective project implementation and sustainable development.

A GAP is prepared during the PPTA and will be implemented during the project implementation.

D. Ethnic Minority Development Plan

The project is categorized as B for the indigenous peoples (ethnic minorities) safeguard. A total of 831 ethnic minority persons from 224 households will be affected by land acquisition and resettlement (LAR). It is accounted for 34.8% of the whole affected persons. All affected ethnic minority people will be compensated and resettled. Measures for their income recovery are prepared in RPs and will be implemented and monitored to ensure better living conditions after LAR. About 120,183 ethnic minority people (46.8% of the total population) in directly affected project areas will benefit directly from better access municipal services and enjoy the improved living environment and business conditions of the project. An ethnic minority impact assessment is prepared for the project in this PSA and a standalone document. A standalone ethnic minority development plan (EMDP) doesn’t prepare for the project. However, main features and actions benefited ethnic minority people are included into the SAP.


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VIII. RECOMMENDATIONS

Recommendations are suggested as follows.

(i) The TPMO, PIUs and relevant government agencies should read the PSA carefully, and confirm actions suggested in the SAP and GAP.

(ii) The SAP and GAP will be implemented during the project implementation. The PIUs will be responsible for the implementation, while the TPMO will be responsible for supervision of the implementation.

(iii) A social development and gender specialist (SDGS) need to be recruited. He/she will be one of members of a consulting team that assist the PIUs and TPMO in the project implementation and management. The specialist will help the PIUs to prepare a detail plan for the SAP and GAP implementation.

(iv) A detail public consultation and awareness plan should be prepared by the TPMO with support of the SDGS at early stage of the project implementation. The main points to be contained in the plan are addressed in this PSA.




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PSA Survey Report



Development Project

Survey Report

Urumqi Keshengda Socio-economic Consulting Co. Ltd

and PPTA Consultant Team

2014.6.15

i

Table of Contents

1. Project Introduction ...................................................................................... 1

2. Project Areas .................................................................................................. 1

3. Survey Procedures ........................................................................................ 2

A. Survey Period and Methodology ............................................................. 2

B. Survey Team Composition ....................................................................... 2

C. Interview with Households ........................................................................ 3

D. Group Discussions .................................................................................... 3

4. Survey Sampling ............................................................................................ 4

A. Household Survey ..................................................................................... 4

B. Focus Group Discussions ........................................................................ 4

5. Summary of Household Survey and FGDs Results ................................ 6

A. Main Results .............................................................................................. 6

B. Detail Results ............................................................................................ 9

6. Suggestions .................................................................................................. 10

1

1. Project Introduction

The Xinjiang Tacheng Border Cities and Counties Development Project (Project) has five outputs or components, including: (i) Tacheng City infrastructures, municipal services, district heating, municipal solid waste (MSW) management, and river rehabilitation; (ii) Emin County infrastructures and municipal services; (iii) Tuoli County infrastructures and municipal services; (iv) Yumin County infrastructures and municipal services, and (v) capacity development and institutional strengthening.

The project will be implemented in Tacheng Prefecture of Xinjiang Uygur Autonomous Region (XUAR).

2. Project Areas

The Project will be implemented in Tacheng City, Emin County, Tuoli County and Yumin County, respectively, of Tacheng Prefecture.

According to project components in FSRs, different components will be implemented in different areas in the project city/counties. The subdistricts or towns where the components will be implemented are defined as directly affected project area (DPA). A total of 256,751 people, including about 34,533 poor (13.5% of the total population), 127,268 female residents (49.6% of the total population) and 120,183 ethnic minority people (46.8% of the total population), will be affected directly by the project in DPA, and they will benefited from the project due to the river rehabilitation, district heating improvement, municipal solid waste improvement, alley rehabilitation and new road network construction, as presented in Table 1 in details.

Table 1: Directly Affected Project Areas and People

No. Component Affected People(person) Directly Affected

Project Area Total Poor Ethnic Female

1

Component I: Rehabilitation of Kalanggur

River in Tacheng

10,111 1,228 4,651 4,853 Rural residents of Axier township along the river

2


Tacheng

94,010 10,915 38,544 46,723


3


waste management

improvement in Tacheng

Same to above

Same to above

Same to above

Same to above


4

Component I: Urban roads

and bridges in Tacheng

96,500 11,218 39,565 47,961

All rural residents in Liaota New Area and all urban inhabitants in Tacheng

5 Component II: Infrastructures

81,660 12,959 39,687 40,422 Rural residents in two villages and all


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and municipal services in

Emin

urban inhabitants in Emin Town of Emin County

6

Component III: Infrastructures and municipal

services in Tuoli

40,750 5,675 28,321 20,334

Rural residents in three villages and all urban inhabitants in Tuoli Town of Tuoli County

7

Component IV: Infrastructures and municipal

services in Yumin

27,730 3,452 7,959 13,699

Rural residents in one village and all urban inhabitants in Halabula Town of Yumin County

Total beneficiary people

256,751 34,533 120,183 127,268

The household survey and focus group discussions will be conducted in the directly affected project areas.

3. Survey Procedures

A. Survey Period and Methodology

In order to understand the status of production and living conditions of affected persons (APs) in the project areas, and their opinions, comments and suggestions on the project as much as possible, a social survey team was organized. The team conducted the household survey on 486 sampling households and interview with wide APs in the project areas during May 14 - 28, 2014. In addition, 17 focus group discussions (FGDs) and public consultations were conducted in affected communities and villages. The survey was carried out in a combination of questionnaire survey, interview, discussion, and field observation, etc in order to collect full opinions, suggestions and expectation from wide APs. See Table 2 for the survey schedule and household sampling distribution in the project city/counties.

Table 2: Questionnaire Survey Schedule and Sampling Distribution

Project Area Date Period Days Number of Sample HH

Tacheng May 14 - 18 5 230

Emin May 19 - 22 4 114

Tuoli May 23 - 25 3 87

Yumin May 26 - 28 3 55

Total 15 486

B. Survey Team Composition

The social survey team is composed of 17 professional survey members with graduate degree and 6 members with undergraduate from Urumqi Keshengda Socio-economic Consulting Co. Ltd. The team has experience in socio-economic surveys for similar projects such as ADB Xinjiang Phase III and Phase IV projects and the World Bank Urumqi District Heating and Energy Renovation Project. The team has 2 doctors, 15 graduates and 6 undergraduates of Sociology and Human Geography. See Table 3. In addition, the social specialists of the PPTA Consultant Team participated in the survey and held FGDs in the project filed.


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Table 3: Survey Team Members

Name Gender Education Position Survey Assignment

Overall

Coordination,

supervisor

Zhou

Shengbin Male Ph.D.

General

Superintendent

Overall coordination

for the social

economic survey

Group One

Zhang

Jinxian Male graduate Leader

Questionnaire survey

and interview Zou

Zhongyi Male graduate Member

Group Two

Gu

Yuanli Male Ph.D. Leader


and interview Zhang

Zhihui Female

graduate Member

Group Three

Yan

Junjie Male

graduate Leader Questionnaire survey

and interview Liu Fang Female graduate Member

Group Four

Yan Lei Male graduate Leader Questionnaire survey

and interview Meng

Qingxi Male

graduate Member

Group Five

Zhang

Fuhao Male

graduate Leader


and interview Wang

Xiaodong Male

graduate Member

Group Six

Li Yingjie

with 2

members

Female graduate Leader

Community/village

discussion Mo

Shenwei

with 2

members

Female graduate Leader

Group Seven 6

members Male/female undergraduate Members Data input

C. Interview with Households

From May 14 to 28, 2014, the team conducted the household survey on 486 sampling households and interview with wide APs in the project areas. The survey was guided by the PPTA social consultants and supported by community or village committees of the project areas. Many APs with different household economic status, nationalities, genders, education levels, and ages were interviewed and replied to the survey questions.

D. Group Discussions

With the full support of the PMO and the affected community/village committees, and the guidance of social specialists of the PPTA Consultant Team, the survey team


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conducted 17 FGDs from May 14th to 28th of 2014 in Tacheng City, Emin County, Tuoli County, and Yumin County. In these discussions, the team introduced the project background and construction contents, the importance in improving local infrastructure and economic, sustainable development, and local people to participate in the project. There are 174 persons from poor families, women and minorities to attend the discussions.

4. Survey Sampling

A. Household Survey

A random sampling HS was conducted in the project city and counties and 486 households were surveyed. The HS questions included not only basic household’s socioeconomic status, but also opinions and concerns on local situation and development in (i) district heating, (ii) solid waste management, and (iii) road and traffic management for Tacheng city components, and road and traffic management for the components of Emin, Tuoli and Yumin counties, respectively. Specific household distributions are presented in Table 4.

Table 4: Sample Size and Distribution of Household Survey in Project Areas

City/county Subdistrict

(Street/township)

Affected Population

(person)

Sample Household

(HH)

Tacheng

Liaota New Area 6,079 32

Heping 21,360 60

Xincheng 21,579 58

Dubieke 27,632 80

Emin Emin 41,862 102

Jiaodong1 1,288 12

Tuoli Tuoli 29,871 77

Duolate2 897 10

Yumin Halabula 13,645 34

Halabula3 1,971 21

Total 166,184 486

Notes: 1. Two affected villages; 2. One affected village; 3. One affected village of Halabula township.

B. Focus Group Discussions

17 FGDs to assess specific impact on affected groups were carried out in Tacheng City, and counties of Emin, Tuoli and Yumin. 174 inhabitants from poor, female and ethnic minority households, separately, participated in the discussions. FGDs’ topics and distribution are presented on Tables 5 and 6.

Table 5: Focus Group Discussion in Tacheng

Component Street/ town Participants FGD Topic


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Component I: Rehabilitation of

Kalanggur river in Tacheng

Axier Township

23 farmers in two FGDs, 4 from

low-income family, 7 women, 13 ethnic

minorities

2 (Kuertobie village in upper stream of the

river; Derzejafuke village near the

wetland)

Major function and impacts of the river;

average damage; main concerns


Tacheng

Liaota New Area

12 farmers who are using home stove for heating, and will use district heating after

the project completion, 5 from

low-income family, 7 women, 8ethnic

minorities

1.Mayihai village

Major heating methods, money cost and time spent; health issue; main concerns and

requirements

Heping



1.Guangchang community

Major heating methods, money cost and time spent; health issue; service quality, main

concerns and requirements


waste management improvement in

Tacheng

Liaota New Area

10 farmers, 2 from low-income family, 5


1.Tasken village



requirements

Xincheng


women,5 ethnic minorities

1.Aiguo community



requirements

Component I: Urban roads and

bridges in Tacheng

Liaota New Area


100% women 1.Yuanyi village

Traffic safety, traffic mode change, public transport status and

requirement

Dubieke


women,100% ethnic minorities

1.Linnan community

Traffic safety, public transport status, main

problems and requirements

Total: 90, including 32 from low-income

family, 53 women, 41 ethnic minorities 8

Table 6: Focus Group Discussion in Emin, Tuoli and Yumin

Component Town/

township Participants FGD Topic

Component II:

Infrastructures and

municipal services

in Emin

Emin

(1) 9 Students and 2 teachers, 50%

female in the first middle school

(2) 11 urban residents, 5 from

low-income family, 9 women, 8

ethnic minorities in Alshat

community

2

Traffic safety,

traffic mode

change, public

transport services

Jiaodong 11 farmers, 1 from low-income family, 1

woman, 6 ethnic minorities 1

Traffic safety,

traffic mode

change, public


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transport status

and requirements

Component III:

Infrastructures and

municipal services

in Tuoli

Tuoli

8 Students and 2 teachers, 4 female in

middle school No.2


family, 10 women, 7 ethnic minorities in

Tuoli town

2

Traffic safety,

traffic mode

change, public

transport services

Duolate


50% women, 100% ethnic minority in

Tiesbahan village

1

Traffic safety,

traffic mode

change, public

transport status

and requirements

Component IV:

Infrastructures and

municipal services

in Yumin

Halabula

8 students and 2 teachers, 60% female

in the first primary school


family, 8 women, 7 ethnic minorities

2

Traffic safety,

traffic mode

change, public

transport services

Halabula1


50% women, 50 ethnic minority 1

Traffic safety,

traffic mode

change, public

transport status

and requirements

Total 84, including 24 from low-income

family, 50women, 45 ethnic minorities 9

Note: 1. Halabula township

5. Summary of Household Survey and FGDs Results

A. Main Results

The HS was conducted in the project area and FGDs were carried out in communities of the project area. Local residents’ understanding on the project and their comments and concerns on the project were discussed during the survey and FGDs. Based on the survey and FGDs, the project impacts are identified.

Understanding of the project. According the HS, 32.6% of the respondents in Tacheng City, 18.2% of the respondents in Emin County, 21.8% of the respondents in Tuoli County and 16.4% of the respondents in Yumin County did not know of the proposed project at all. Most of the respondents have known the project information from village/community committees. FGD results showed that 98% of the participants expressed their support to the project after being told the basic components of the project.

Housing. The households have average house-ownership rates of 87%, and 64% of the households take living area of over 80m2. In Tacheng city, 53.5% of surveyed families have independent housing, and in Emin, Tuoli and Yumin counties, this rate is about 90% on average.

River Rehabilitation. All FGD participants in Axier Township thought they will be direct beneficiaries of the river rehabilitation. 100% of the respondents believe that


line


line


they will benefit from the river rehabilitation in (i) reducing agricultural production loss due to potential flood risks of the Kalanggur River; (ii) promoting tourists to visit to Axier Township as a Daur nationality township in Xinjiang and increasing tourism income of the township; (iii) improving living environment and eco-environment on embanks of the river; and (iv) improving traffic conditions cross the river.

District Heating. In the survey area of Tacheng City, 53.5% of respondents now are using house coal stoves for heating. 94% of respondents who are using house coal stoves are willing to change for the district heating in order to improve comfort level and living quality in winter, especially benefits for women are reducing housework, better study conditions for children, more leisure time and reducing disease incidence of family members. However, 38% of the respondents expressed that the heating price is too expensive. Many respondents thought that the higher heating access charge is the main reason for many families to give up the district heating. 70.4% of respondents who are using the urban district heating are not satisfied with the current heating service. The heating equipment aging is an important reason caused the service problems.

Solid Waste Management. 28.5% of the respondents are quite satisfied and 40.2% of the respondents are not satisfied with urban sanitation. 59.8% of the respondents are not satisfied with complain mechanism about environmental sanitation. The satisfaction of solid waste management is shown in Table 7.

Table 7: Satisfaction of Solid Waste Management

Solid Waste Management Satisfied

(%)

No

comments

(%)

Not satisfied

(%)

Amount of trash bins 33.9 31 35

Distance to trash bins 35.5 33.5 30.7

Solid waste collection 24 45 31.5

Garbage transport 41 31 27.7

Garbage disposal 41.4 30 27

Daily street-sweeping 36 38 25

Street watering 26.3 36.5 35

Snow removal in winter 30 30 39.4

Date Source: Household Survey Report

All the respondents put the kitchen wastes into the dustbin or dumping place, and the paper, metal, glass, rubber and plastic wastes will be collected for sale. 71% of respondents don't know about the 3R, and 25% of them are willing to learn more about 3R and try to follow it. However, FGDs showed different results. All participants support the reduction, recycling and reusing solid wastes after detailed introduction of 3R principle. 97% of respondents agreed that everyone should play an important role in community waste management; 78% of them agreed to carry out the environmental education in the community; 75% of them thought that the local government didn't take enough effort on the waste treatment, and they support for the establishment of official rewards and punishment system, which will facilitate the different waste classification and collection in the household. All respondents prefer free or pay less on solid waste collection and disposal fee to maintain daily construction and facilities operations.

Public Transport and Traffic Safety. The surveys and all the FGDs related to the urban infrastructure development were carried out in the neighborhoods in or near the road subproject sites in Tacheng City, Emin County, Tuoli County and Yumin County, respectively. All the respondents and FGD participants will be the direct


beneficiaries of the urban road network.

(1) Satisfaction. Most respondents are quite satisfied with the present transportation situation of the project city/counties. Some of them expressed their discontent to bad condition of lane roads of the neighborhoods near the proposed road construction sites. 58.8% of the respondents in Emin are not satisfied with the traffic situation at all. In Tacheng, Tuoli and Yumin, this figure is 29%,11.5% and 10.9%, respectively.

(2) Transport mode. The walking, bicycling and motorcycling are the top three transport modes and only less than 10% of residents take bus in four project city/counties. This is because urban areas are small and people only spend 5 to 15 min on the way to work, school and shopping. All respondents hope for improving public traffic and reducing traffic safety risks of motorcycling.

(3) Major Traffic Issues. Sorted by selecting proportion, mix of motorized and non-motorized traffic, lack of sidewalks for pedestrians, lack of bicycle lanes, jaywalking, bad road conditions and indiscriminate parking are considered major problems by respondents. It is found that Tacheng City has more traffic problems than that in Emin, Tuoli and Yumin due to its bigger size of city and population. More details are presented in Table 8. Different groups like the poor and non-poor, Han and non-Han, male and female don’t have much difference on this subject. As for traffic problems need to be solved, bad road condition and lack of public transport are identified priorities. Non-poor choose road condition as the top priority, and the poor choose public transport as the top priority.

Table 8: Major Traffic Issues in Project City/Counties

Major Traffic

Issues

Tacheng Emin Tuoli Yumin


Difficult for

pedestrians to

cross the road

4 13.04 4 9.6 7 4.6 3 12.7

Lack of traffic

signs/lights 5 8.26 4 9.2 4 9.1

Jaywalking 1 20.87 6 5.3 5 4.6 2 18.2

Indiscriminate

parking 3 14.35 3 11.4 3 10.3 5 7.3

Mix of motorized

and non-motorized

traffic

6 8.26 7 5.3 8 1.1 10 1.8

Bad Road

conditions 2 18.26 1 26.3 2 17.2 1 29.1

Conditions of

sidewalks are

poor/pot-holes for

pedestrians

7 4.35 6 4.6 7 5.5

Lack of sidewalks

for pedestrians 9 2.17 8 5.3 9 1.1 8 3.6

Lack of bicycle

lanes 10 0.87 10 1.8 10 1.1 11 1.8

Poor street lighting 8 3.48 2 14 5 9.2 9 3.6



Frequent traffic

jams 11 0.87 9 4.4

Lack of public

transport 5 7 1 34.5 6 7.3

Date Source: Household Survey Report.

(4) Traffic Safety Risks. Weakness of public awareness, indiscriminate parking, bad situation of non-vehicle lane, poor traffic lightning and mix of non-motor with motor lane are considered the top risks that cause traffic safety problems in the project counties/city (see Table 9). In Emin and Yumin, bikes and vehicles often share the same lane due to the narrow roads and lack of non-vehicle lane. Overall, the traffic safety risk is more serious since urban residents in small cities have less traffic safety awareness. Other traffic safety issues like lightning and poor non-vehicle lane will not be the safety risk in newly built districts either.

Table 9: Traffic Safety Risk Survey Result

Traffic Safety Risk Tacheng Emin Tuoli Yumin


Lack of traffic safety

propaganda

5 60.5 9 39.5 12 9.2 5 38.1

Public awareness is

not strong

1 79.6 2 68.4 3 35.6 1 56.4

Indiscriminate

parking

2 78.3 3 68.4 2 39 2 52.7

Mix of sidewalk with

motor lane

3 71.8 6 64.9 7 27.5 6 36.4

Lack of necessary

traffic lights

7 53.5 7 56.1 4 32.1 9 30.9

Lack of traffic marks

and signs

8 51.3 8 50.9 6 28.7 7 32.8

Over speed of

vehicles

10 24.3 10 24.5 10 14.9 10 12.7

Lack of non-vehicle

lane

6 60 4 66.7 8 26.4 4 38.2

The situation of

non-vehicle lane is

poor

4 65.6 1 84.2 5 29.9 3 45.5

Traffic Lightning is

not good

9 41.3 5 66.6 1 50.6 8 32.7

Drunk driving 12 13.1 12 21.9 11 11.4 12 1.8

Lack of traffic

policeman

11 20 11 22.8 9 17.2 11 7.3

B. Detail Results

Detail survey results are included in household survey statistics tables of each project city or county and records of each FGDs. The tables and records are prepared in Chinese and



line


can be provided when requested.

6. Suggestions

The survey was conducted with main methodology of (i) household questionnaire suvrey; (ii) focus group discussions with affected community residents; and (iii) interview with stakeholders and informants. In some cases, different methods are combined to provide a light atmosphere in order to collect real opinions and comments of the APs. The people involved in the survey include poor, women, ethnic minority, youth, the old and religious persons and community committees. Their opinions and suggestions are summarized in the survey report. During participant observation and household surveys, interviews and discussions, the team fully respected APs voice and paid attention to their opinions and comments with equal tone to discuss the project content, potential impact, and implementation. In this way, the participants like to express their real economic income level, income source structures, and any opinions and suggestions on the project implementation. Based on open and equality consultation, the APs understand clearly the purpose of the Project implementation and potential impacts.

Tacheng Prefecture is a multi-nationalities area. Therefore, during the survey process, the team conducted desk study first and make supervisors and investigators fully understand the habits and taboos of local ethnic minorities, and respect their values and customs, the voice of surveyed ethnic minorities as well. Also need pay attention to let ethnic minority initiative talk, and with equal tone to interview.

From experiences of this survey, some conclusions can be drawn. First of all, questionnaire should be targeted, and questions should be accepted by respondents. Meanwhile, as much as possible use the multiple-choice questions for asking. Second, when deliver questionnaire to surveyed people, try to be humanization, such as providing a pencil or other writing tools. And treated respondents as enthusiasm and polite. After respondent accepted questionnaire, investigators should actively show gratitude. Third, after taking back questionnaire, should immediately finish statistical work, summarize the data as soon as possible. After the statistical data, the veracity of data and objective assessment.

Based on the survey, we found (a) female respondents' answer quality is better than male. The older respondents are the greater proportion of missing questionnaire information. The higher respondents' education degrees are, the better the questionnaire. The questionnaires from respondents who are married and have a job are better than those who are single or without a job; (b) the degree of accepting social survey and ability of understanding the meaning of questionnaire questions has connection with respondents' own characteristics; (c) for external environment of the respondents, people who live in community is more willing to cooperate with the survey than those who live in old city, town or urbanized farming community, also higher quality answer. The survey effect of conducting in the morning is better than in the evening. And presence of important ones often has a strong impact on quality of the respondents' answers; and (d) for the survey to local minority ethnic, investigators should use an equal tone to talk with ethnic minorities, so that will be more have affinity. To investigate ethnic minorities, investigators must respect their customs and voice.

Initial Environmental Examination

September 2014

PRC: Xinjiang Tacheng Border City and Counties Development Project

Prepared by the Tacheng Prefecture Government of Xinjiang Uygur Autonomous Region for the Asian Development Bank.

ii

CURRENCY EQUIVALENTS (as of September 2014)

Currency Unit - Yuan (CNY)

CNY 1.00 = US$ 0.16

US$ 1.00 = CNY 6.14

ABBREVIATIONS

ADB - Asian Development Bank

AP - Affected person

CHP - Combined heat and power generation

CNY - Chinese Yuan

CS-EMP - Construction Site Environmental Management Plan

CS-ES - Environment specialist of the project management consulting services

CSC - Construction supervision company

DI - Design institute

DI - Ductile Iron Pipe

EA - Executing Agency

EHS - Environmental, health and safety

EIA - Environment Impact Assessment

EIS - Environmental impact assessment report

EMP - Environmental Management Plan

EMS - Environmental monitoring station

EMU - Environment management unit

EPB - Environmental Protection Bureau

EPD - Environmental protection department

ESP - Environmental Supervision Plan

FSR - Feasibility Study Report

FYP - Five year plan

GAP - Gender action plan

GDP - Gross Domestic Product

GHG - Greenhouse Gas

GRM - Grievance redress mechanism

HDPE - High Density Polyethylene

IA - Implementing Agency

IA-ESs - Implementing Agency environmental services

IEE - Initial Environmental Examination

LAR - Land Acquisition and Resettlement

LIC - Loan implementation consultant

LPMO - local PMO

MEP - Ministry of Environmental Protection

MSW - Municipal Solid Waste

Mu - Chinese Land Measuring Unit (1 hector = 15 mu)

NDRC - National Development and Reform Commission

NMT - Non-motorized traffic

NMV - Non-motor vehicle

iii

O&M - Operation and Maintenance

OPF - Operators of project facility

PCU - Passenger Car Unit

PE - Polyethylene Pipe

PIC - Project Implementation Consultant

PIUs - Project Implementation Units

PMO - Project Management Office

PPCU - Project Public Complaint Unit

PPTA - Project Preparatory Technical Assistance

PRC - People’s Republic of China

REA - Rapid environment assessment

ROW - Right-of-way (red line)

SAP - Social action plan

SPS - Safeguard Policy Statement

TOR - Terms of Reference

TPPMO - Tacheng Prefecture Project Management Office

WSCP - Water and soil conservation plan

WSP - Water Supply Plant

WWTP - Wastewater treatment plant

XUAR - Xinjiang Uygur Autonomous Region

WEIGHTS AND MEASURES ℃ - degree Centigrade

g - gram MW - megawatt h - hour ha - hectare km - kilometer km

2 - square kilometer

l - liter LAeq - Equivalent continuous A-weighted sound pressure level m - meter m/s - meter per second m

3 - cubic meter

m3/d - cubic meter per day

m3/s - cubic meter per second

m3/a - cubic meter per annum

mg - milligram mg/l - milligram per liter mg/m

3 - milligram per cubic meter

mm - millimeter t - metric ton t/d - metric ton per day t/a - metric ton per annum

iv

NOTE

In this report, "$" refers to US dollars.

This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

v

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY .......................................................................................................................................2

A. BACKGROUND .......................................................................................................................................................... 2 B. PROJECT IMPACT, OUTCOME, OUTPUTS ........................................................................................................................ 3 A. ENVIRONMENT, HEALTH AND SAFETY BENEFITS ................................................................................................................ 5 C. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES .................................................................................... 6 B. CONSULTATION, GRIEVANCE REDRESS MECHANISM (GRM) ............................................................................................. 10 C. PROJECT RISKS AND ASSURANCES ............................................................................................................................... 11 D. OVERALL CONCLUSION ............................................................................................................................................. 12

II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ....................................................................................... 13

A. OVERVIEW ............................................................................................................................................................. 13 B. THE PRC’S ENVIRONMENTAL LAWS, REGULATIONS, GUIDELINES, AND STANDARDS ............................................................. 13 C. INTERNATIONAL AGREEMENTS ................................................................................................................................... 15 D. APPLICABLE ADB POLICIES AND WORLD BANK’S EHS .................................................................................................... 15 E. SCOPE OF ASSESSMENT AND ASSESSMENT STANDARDS FOR PROPOSED PROJECT COMPONENTS ............................................. 16 F. THE ENVIRONMENTAL MANAGEMENT INSTITUTIONAL FRAMEWORK AND THE EIA APPROVAL PROCESS ................................... 22

III. DESCRIPTION OF THE PROJECT ......................................................................................................................... 24

A. INTRODUCTION ....................................................................................................................................................... 24 B. PROJECT RATIONALE AND JUSTIFICATION ..................................................................................................................... 24 C. IMPACT, OUTCOME AND OUTPUTS ............................................................................................................................. 27 D. OUTPUT 1 - IMPROVED URBAN INFRASTRUCTURE AND MUNICIPAL SERVICES IN TACHENG CITY ............................................... 29 E. OUTPUT 2: IMPROVED URBAN INFRASTRUCTURE AND SERVICES IN EMIN COUNTY ................................................................ 38 F. OUTPUT 3: IMPROVED URBAN INFRASTRUCTURE AND SERVICES IN TUOLI COUNTY ............................................................... 40 G. OUTPUT 4: IMPROVED URBAN INFRASTRUCTURE AND SERVICES IN YUMIN COUNTY .............................................................. 41 H. DUE DILIGENCE FOR ASSOCIATED AND/OR LINKED FACILITIES .......................................................................................... 42

IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) ........................................................................................ 49

A. ENVIRONMENTAL SETTING OF XINJIANG UYGUR AUTONOMOUS REGION AND TACHENG PREFECTURE ..................................... 49 B. DESCRIPTION OF THE ENVIRONMENT IN TACHENG CITY .................................................................................................. 51 C. DESCRIPTION OF THE ENVIRONMENT IN EMIN COUNTY ................................................................................................... 61 D. DESCRIPTION OF THE ENVIRONMENT IN TUOLI COUNTY .................................................................................................. 66 E. DESCRIPTION OF THE ENVIRONMENT IN YUMIN COUNTY ................................................................................................. 70

V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ..................................................................................... 75

A. POSITIVE IMPACTS AND ENVIRONMENTAL BENEFITS ....................................................................................................... 75 B. SCREENING AND SCOPING OF POTENTIAL IMPACTS ........................................................................................................ 78 C. PRE-CONSTRUCTION PHASE ...................................................................................................................................... 79 D. IMPACTS AND MITIGATION MEASURES DURING CONSTRUCTION ...................................................................................... 80 E. ENVIRONMENTAL IMPACT AND MITIGATION MEASURES DURING OPERATION ..................................................................... 96 F. INDIRECT, INDUCED AND CUMULATIVE IMPACTS.......................................................................................................... 111 G. CLIMATE CHANGE AND GREENHOUSE GAS (GHG) EMISSIONS ....................................................................................... 112 H. CLIMATE CHANGE PROJECTIONS, ADAPTATION TO FUTURE CLIMATE CHANGE EFFECTS ....................................................... 116

VI. ALTERNATIVE ANALYSIS ............................................................................................................................. 119

A. ALTERNATIVES FOR TRANSPORT INFRASTRUCTURE AND MUNICIPAL SERVICES ................................................................... 119 B. ALTERNATIVES FOR TACHENG DISTRICT HEATING SUB-COMPONENT ............................................................................... 123 C. ALTERNATIVES FOR TACHENG KALANGGUER RIVER REHABILITATION COMPONENT ............................................................. 124

VII. PUBLIC CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE .............................................. 126

vi

A. LEGISLATIVE FRAMEWORK ...................................................................................................................................... 126 B. INFORMATION DISCLOSURE ..................................................................................................................................... 126 C. FIRST ROUND OF CONSULTATION ............................................................................................................................. 127 D. SECOND ROUND OF CONSULTATION ......................................................................................................................... 132 E. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE DURING PROJECT IMPLEMENTATION ................................... 133

VIII. GRIEVANCE REDRESS MECHANISM (GRM) ................................................................................................. 137

IX. ENVIRONMENTAL MANAGEMENT PLAN ........................................................................................................ 138

X. CONCLUSION ................................................................................................................................................. 140

A. SAFEGUARD CATEGORIZATION, DUE DILIGENCE ............................................................................................................ 140 B. ENVIRONMENT, HEALTH AND SAFETY BENEFITS ............................................................................................................ 140 C. IMPACTS, ENVIRONMENTAL MANAGEMENT PLAN (EMP) .............................................................................................. 141 D. CONSULTATION, GRIEVANCE REDRESS MECHANISM (GRM) ........................................................................................... 142 E. PROJECT RISKS AND ASSURANCES ............................................................................................................................. 142 F. OVERALL CONCLUSION ........................................................................................................................................... 145

APPENDIXES

Appendix EMP – Environmental Management Plan

Appendix 2 – Environmental Safeguard Clauses for Civil Works Contracts

vii

Map A: Project City and Counties in Tacheng Prefecture

Map B: Tacheng City Infrastructure and Municipal Service Component (Transport Infrastructure)

Tacheng

Emin

Tuoli

Yumin

viii

Map C: Tacheng Kalangguer River Rehabilitation and Flood Control Component

ix

Map D: Emin County Road Network

Map E: Yumin County Road Network

x

Map F: Tuoli County Road Network

2

I. EXECUTIVE SUMMARY

A. Background

1 This Initial Environmental Examination (IEE) was prepared for the proposed Xinjiang Tacheng Border City and Counties Development Project (the project) in the four city/counties of Tacheng Prefecture in Xinjiang Uygur Autonomous Region (XUAR), the People’s Republic of China (PRC). The IEE has been prepared in accordance with the requirements of the Asian Development Bank’s (ADB’s) Safeguard Policy Statement (SPS, 2009) on the basis of (i) five domestic environmental impact assessment (EIS) and six tabular EIA (TEIA) reports prepared by the domestic EIA Institute, (ii) four project Feasibility Study Reports (FSRs), (iii) Water and Soil Erosion Control Plans for Tacheng City and Emin County; (iv) social and economic assessments conducted under the Project Preparatory Technical Assistance (PPTA); (v) four project city/counties’ urban development master plans; and (vi) discussions between the ADB missions, PPTA consultants, XUAR Government, Tacheng Prefecture’s government and four project city/counties governments.

2 Located in the northwest of the PRC, XUAR is a border area linking the PRC to Central Asia. It is the largest province/autonomous region in the PRC with a total area of 1.66 million km2, which is about one sixth of the total area of the country. The total population of XUAR is 22.33 million in 2012, ranked 25th (1.65%) among all provinces/autonomous regions in the PRC. XUAR is one of the less developed provinces/regions in the country, by 2012, the total gross domestic product (GDP) was CNY 750.5 billion, ranked 25th among 31 provinces/regions in the PRC; the average GDP per capita was CNY 33,796, ranked 18th, and the average urban resident disposable income was CNY17,921, ranked 28th. In comparison to the national averages (annual GDP per capita = CNY 38,420, disposable income = CNY 24,565), XUAR remains one of the less-developed regions of the PRC.

3 To spur economic growth of the Western Region, including XUAR, in 2000, the PRC government launched the National Strategy for Development of the West, to stimulate economic development and raise the living standard of the residents in the western provinces/regions. Its development strategy focuses on its potential role in, and contribution to, the Central Asia Regional Economic Cooperation Program. As a result of the ongoing economic development, XUAR has experienced rapid urbanization. The increasing urban population, industrialization, and economic development will continue to increase the demand for urban infrastructures and municipal services such as transport infrastructure as well as water supply, wastewater collection and treatment, district heating and municipal solid waste (MSW) management.

4 Tacheng Prefecture is located in the northwest of XUAR. It has a total area of 104,500 km2. In 2012 the total population of Tacheng Prefecture was 965,000 with an urban proportion rate of 49%, of which, ethnic minority groups comprised 442,000 (46%). The four project city/counties are experiencing rapid growth in population resulting from national urbanization policies and the demand for labor in emerging processing industries and in other economic activities spurred by an increasing trade with neighboring Kazakhstan. However, the city/counties are suffering from a lack of investment in key urban infrastructures and municipal services, increasingly affecting the social economic development and living conditions of the local residents.

5 The proposed project will support sustainable urban development of Tacheng City and the towns of Emin, Tuoli and Yumin in Xinjiang Uygur Autonomous Region, the People’s Republic of China (PRC). The main objective of the project is to support the project cities and towns upgrading their urban infrastructures, municipal services and urban living environment.

3

B. Project Impact, Outcome, Outputs

6 The project impact is the improved economic growth, border trade capacity and living conditions in the project border cities and counties. The project outcome is the improved urban infrastructures, municipal services and border trade capacity in project border cities and counties. Indicative project outputs are summarized below and in Table I-1.

7 Output 1: Improved urban infrastructure and municipal services in Tacheng City, including: (i) construction of 13 urban roads with a total length of 29.5 km, with emphasis on developing pedestrian/bicycle and public transport; (ii) installation of a 45.4 km water supply piping network; (iii) installation of a 48.8 km sanitary sewer piping network; (iv) installation of a 37.2 km primary hot water heating pipe network and 21 hot water heat exchange stations; (v) rehabilitation of 14.1 km alleyways; (vi) upgrade of security monitoring and MSW equipment for Baktu Port; (vii) improvement of the MSW management promoting 3R principles; (viii) upgrading of city operation and maintenance (O & M) equipment; and (ix) rehabilitation of 15.2 km Kalangguer River embankment works for flood risk management .

8 Output 2: Improved urban infrastructure and services in Emin County, including: (i) rehabilitation of one (3.2 km) and construction of five urban roads with a total length of 10.1 km; (ii) installation of a 8.3 km water supply piping network; (iii) installation of a 9.9 km sanitary sewer piping network; and (iv) upgrading of maintenance equipment.

9 Output 3: Improved urban infrastructure and municipal services in Tuoli County, including (i) the construction of the outer ring road with a total length of 14.1 km, and (ii) the upgrade of city maintenance equipment.

10 Output 4: Improved urban infrastructure and municipal services in Yumin County, including: (i) rehabilitation of three (4.9 km) and construction of three new urban roads with a total length of 9.7 km, promoting pedestrian/bicycle and public transport; and (ii) upgrading of maintenance equipment.

11 Output 5: Improved capacity and institutional arrangements. The component will strengthen capacity and institutions for the project’s management and operation. It will provide expert support and advice on project implementation including contract management, financial management, safeguard and social monitoring and capacity development activities on ADB policies and regulations. The component will also include three specific subcomponents to strengthen the capacity of the EA and IAs in relation to project subsectors: (a) support to the IAs to improve the overall MSW management capacity especially to introduce and implement 3R MSW management principles; (b) development and implementation of a strategy to promote border trade and logistic development to improve the border trade capacity in considerations of local economic and production characters; and (c) an urban transport capacity development program including holistic urban road design and road safety audit, people-centric urban transport planning, road network management and maintenance.

Table I-1: Overview of Project Components and Subcomponents No. Description Type/Classification Unit Length/Capacity 1. Improved urban infrastructure and municipal services in Tacheng City

A Tacheng Transport Infrastructure

1 Third Ring Road Urban Major m 3,867 Third Ring Road Bridge 20 m single span void slab, 26 m width 2 Fifth Ring Road Urban Major m 2,678 Fifth Ring Road Bridge 20 m single span void slab, 26 m width

4

No. Description Type/Classification Unit Length/Capacity

3 Tiyuguan Xi Road Urban Major m 1,866 4 Chanye Yi Street Urban Major m 2,200 Chanye Yi Street Bridge 20 m single span void slab, 26 m width 5 Chanye Nan San Road Urban Major m 1,800 6 Second Ring Road Secondary m 3,463 7 Tianyuan Nan Road Secondary m 2,032 8 Xixing Nan Road Secondary m 2,032 9 Heshan Nan Road Secondary m 2,032 He Shan Nan Road Bridge 20 m single span void slab, 26 m width 10 Fourth Ring Road Secondary m 2,184 11 Chanye Si Street Secondary m 3,016 Chanye Si Street Bridge 20 m single span void slab, 20 m width 12 He Mei Road Urban Major m 1,656 13 He Mu Nan Road Secondary m 620 He Mu Nan Road Bridge 20 m single span void slab, 20 m width Subtotal = 29,447

B Baktu Port Equipment Improvement

MSW and Street Cleaning Equipment set 1 Security Monitoring System set 1 C Alley Rehabilitation Branch m 14,057

D Municipal Service Facilities

1 Water Supply Pipe Network PE & DI pipe m 47,661 2 Sanitary Sewer Pipe Network HDPE & RC m 48,791 3 Primary Heating Piping Network Steel m 40,452 4 Heat Exchange Stations ea 27 E Kalanggur River Rehabilitation m 15,223

4 Bridges of 60 m span with widths of 12 -24 m

F Municipal Solid Waste Management MSW stations, garbage container, MSW equipment, etc.)

LS 1

2. Improved urban infrastructure and municipal services in Tuoli County

A Emin Transport Infrastructure

1 Arxiate Road - Rehabilitation Urban Major m 3,224 Arxiate Road – New Urban Major m 664

2 Wenhua Road Secondary m 931 3 Guihua Wu Road1 Urban Major m 1,285 4 Guihua Qi Road Branch m 1,962 5 Guihua Jiu Road Secondary m 2,065

Subtotal = m 10,131

B Water Supply Pipe Network PE & DI m 8,260 C Sanitary Sewer Pipe Network RC & HDPE m 9,865 3. Improved urban infrastructure and municipal services in Tuoli County

1 Outer Ring Road Urban Major m 14,090

4. Improved urban infrastructure and municipal services in Yumin County

A Yumin Transport Infrastructure

1 Guihua Yi Road Secondary m 1,476 2 Guihua Er Road Urban Major m 1,876 3 Longzhen Road (Rehab) Secondary m 2,338 4 Yujinxiang Road (Rehab) Secondary m 418

5 Yujinxiang Road (Rehab) Bus station at Bilingual Kindergarten

Secondary m 953

6 Hong Hua Road (Rehab) Bus station at County Hospital

Branch m 1,168

6 Donghuan Road Secondary m 1,505 Subtotal = m 9,734

B Water Supply and sewer pipelines m Note 11

1 The water supply and sewer pipelines will be installed by using domestic funding.

5


C Urban Cleaning Equipment, MSW Container & Trash Bin set 1 5. Capacity Development and Institutional Strengthening

A Project implementation support B Institutional Capacity Development Source: FSR and PPTA Consultant

A. Environment, health and safety benefits

12 Direct project beneficiaries. The project will bring significant environmental, health and safety benefits to some 257,000 people, including about 34,500 poor; 127,000 female residents; and 120,000 ethnic minority people (46.8% of the total population). The project will facilitate environmentally sustainable urban infrastructure development and municipal services by improving urban road linkages and related facilities by rehabilitating and upgrading urban roads and street alleys, constructing urban roads and bridges, improving water supply and sewer coverage, installing energy-efficient LED street lighting, and expanding public green areas. The project will improve public transport services and implement road safety and traffic management initiatives. Key environment benefits are highlighted here:

13 People-centered transport facilities. All new roads will be developed with safe and adequately wide footpaths as well as fully segregated non-motorized lanes where possible. Traffic safety will be promoted through adequate design of the roadway itself (including key interventions such as appropriate street lighting, safe roadway alignments, adequate shoulders, signage, roadway markings, and protective barriers in vulnerable areas). Project design has emphasized investments in public transport facilities, including the installation of 28 weather-protected public bus stations along project roads in Tacheng, Emin and Yumin. The use of LED street lights will result in energy savings over 2.43 million KWh per year with an estimated CO2eq emission reduction of 2,420 t/a as compared to conventional street lighting. 2

14 Flood control and river revitalization. In Tacheng City, the Project will construct and rehabilitate unstable river embankments along 15.2-km of the Kalangguer River, significantly improving the city’s ability for flood control and protection. Consequently, damages of floods to houses, facilities and goods, as well as farm lands and crops, will be prevented and/or mitigated. The most direct benefit of the Project will be that the flooding of an estimated 14-km2 area will be avoided should a 1-in-50-year flood occur. The revitalization of the Kalangguer riverfront will include a 15m band of trees along both sides to improve visual appearance, and carbon sink to offset city vehicle emissions. The 167,000 trees will cover some 36 ha, which are expected to sequester some 33 tons of CO2 per year

15 District heating. With project support, the Tacheng Municipal Government will commission new district heating distribution capacity to supply existing a new service areas. The planned combined heat and power plan (CHP) will use its waste heat to provide hot water to the district heating system. The proposed development will substantially improve energy efficiency and service quality, expand district heating coverage by 3.65 million m2, and ultimately lead to reduced emissions resulting from the shift in heat source.

16 Solid waste. The project will support upgrading the existing collection system to enhance collection efficiency and meet environmental compliance, building new collection stations to serve

2 A KWh electricity saving reduces 0.997 kg of CO2.

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expanded urban area, and piloting sorting and recycling scheme in three communities in Tacheng. It’s estimated that about 103.2 t/d of solid waste will be collected and disposed in Tacheng City after implementation of the project.

17 Surface water pollution abatement. The infrastructure development components in Tacheng City and Emin County will construct 56.871 km sewer pipeline, with the service population of 170,200. The estimated amount of domestic wastewater to be collected is about 39,800 m3/d. This wastewater will be delivered to the existing municipal WWTPs, where it will be treated to Class-1B Standard prior to discharge.

18 Climate adaptation. The project conforms to the principles of the Bellagio Declaration on sustainable transportation and climate change, which recommends that adaptation strategies, at a minimum, contain the following aspects: (i) a long-term perspective (building climate resilient infrastructure); (ii) requirements for fixing and adapting what already exists (such as road rehabilitation and maintenance in Emin County), (iii) recognition of the need to respond to climate emergencies (such as an emergency preparedness approach for floods). The transport infrastructure components with improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme weather events that might result from future climate change. They will provide efficient and alternative routes for both emergency vehicles and escape.

C. Potential environmental impacts and mitigation measures

19 Safeguard category, environment due diligence. The project’s potential environmental impacts were screened at PPTA inception stage based on ADB’s rapid environment assessment checklists in order to (i) identify the relative significance of potential impacts from the activities of the proposed components and subcomponents; and (ii) establish the scope of the assessment. The results of the scoping are shown in Chapter V of this IEE. As a result, the Project was classified as category B for environment safeguards, requiring the conduct of an initial environmental examination (IEE) in compliance with ADB's Safeguard Policy Statement (2009).

20 Major impacts during project construction include permanent and temporary acquisition of land and residents resettlement, earthwork and soil erosion, noise impact, air pollution, surface water pollution during bridge construction, impacts to Kalangguer River during river embankment works, and occupational and community health and safety.

21 Soil erosion, earthwork. Soil erosion intensity will increase at construction sites, with an incremental soil erosion estimated to amount 24,000 tons of additional soil erosion if no soil protection measures are taken. Soil erosion mitigation measures, including a soil erosion inspection and monitoring program, have been defined in the soil and water conservation plans prepared for the Tacheng and Emin project components. The imbalance between earth excavation and fill, as originally proposed in the draft FSRs, could be significantly reduced through policy dialog between the DI, the PPTA consultants and ADB Missions. The project will generate some 960,000 m3 of spoil and inert construction waste, which will be transported to the approved spoil disposal sites with adequate capacities to receive spoil generated during project construction. Soil erosion protection plans have been developed approved by local EPBs and WRBs for all spoil disposal sites, and environmental management performance of the sites including soil erosion protection and vegetation coverage restoration will be periodically monitored for compliance.

22 Impact on local hydrology. The project will construct ten bridges with a span of 20-60 m crossing rivers and small drainage channels. All bridges will been designed based on the PRC

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flood control standard of 1-in-50 years. Bridge construction, as well as river embankment works along Kalangguer River, may disrupt river hydrology and water quality through obstruction of flood flows, increased sedimentation. To minimize the impact, river bridge pier construction and works on the riverbank will be conducted during the dry season. Works on the riverbed will be avoided. Construction during the high-flow season (April to June) will be prohibited. Since groundwater in the project’s areas of influence is generally relatively deep (average 15 m Tacheng, Emin and Yumin, and 22-44 m in Tuoli), no major impact on groundwater resources is anticipated in either the construction or operation phases of the roads and auxiliary facilities. Contractors will be required to develop site drainage and soil erosion protection plans as well as spill control and management plans as part of their construction-site environment management plans (CS-EMPs). Surface water monitoring will be conducted by local environment monitoring stations during project construction to confirm adequacy of the implemented protection measures.

23 Impact on air quality and acoustic environment. Anticipated sources of air pollution from construction activities include (i) dust generated from earth excavation and transport, and from disturbed and uncovered construction areas filling, loading, hauling and unloading; from aggregate preparation and concrete-mixing; (ii) vehicle emission from construction vehicles and heavy diesel machineries and equipment (gaseous CO, CH and NO2); (iii) asphalt flue gas during road pavement; and (iv) noise from construction and transport activities. Air quality and noise control measures have been defined in the EMP (such as daily spraying of water to control dust; locating asphalt plants and mixers at least 500 m downwind from the nearest residential areas and other sensitive receptors, and restricting construction activities at night). The IEE concludes that the impact of construction on air quality will be acceptable. This will be verified through visual inspections and ambient air quality and noise monitoring.

24 Impact on ecological resources. The IEE confirmed that none of the project sites is within a legally protected site or a site proposed for protection. The project sites do not include critical habitats with recognized critically endangered or endangered species. Project sites largely support degraded and modified habitats with low conservation value. No rare and endangered species were identified and recorded in the project areas. This was confirmed by the Tacheng Prefecture EPB. River embankment works will avoid removal of native vegetation. Tree cutting and river bed dredging works will be avoided. The project as a whole will increase vegetated area by some 1.5 million m2, including some 190,000 trees and bushes. No alien and/or invasive species will be introduced for forestation and landscaping works in the project areas.

25 Land acquisition, resettlement. The project is classified as category A for the involuntary resettlement safeguard. The project will acquire about 1,474 mu of collective land and 1,481 mu of state-owned land. The permanent land acquisition and house demolition required by the project will affect a total of 674 households and 2,395 persons. Among these, 831 ethnic minority people will be affected, accounting for 34.7%. To attenuate land acquisition and resettlement impacts, resettlement plans have been developed for each project city/county. ADB staff and external monitoring institution will supervise and monitor implementation of the resettlement plans to minimize grievances of the affected persons.

26 Community health and safety. Some construction sites will be located close to residential communities, presenting a threat to public health and safety. The construction may also contribute to road accidents through the use of heavy machinery on existing roads. Construction may cause unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply, drainage, and heat supply. Mitigation measures include development of a traffic control and operation plan, survey of underground utilities and other facilities, information disclosure and construction site protection.

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27 Occupational health and safety. Contractors will implement adequate precautions to protect the health and safety of their construction workers, and will be required to develop an Environmental Health and Safety Management Plan. This plan will outline detailed provisions for clean water, handling of sewage and wastewater, solid waste management, personal protection equipment, emergency preparedness and response, safety communication. A detailed training program will also be prepared and implemented.

28 The main impacts during operation of the project facilities identified at impact screening stage included traffic noise and air pollution at some sensitive areas along the constructed roads including schools, villages and residential areas. The noise from heat exchange stations may impact nearby residents; improved riverbanks will require maintenance from time to time, however, such maintenance activities will be infrequent (about once every three years), and will not cause significant impacts. Other negative environmental impacts and risks during operation include traffic safety caused by over speed, and potential accidental spills caused by hazardous goods transportation on the bridges and/or nearby the rivers.

29 Air quality along project roads. Vehicle emission concentrations at average traffic volumes (both daily average and rush hours) during the operation period at sensitive locations were estimated, concluding that the incremental concentrations of NO2 and CO for 2019 (short-term), 2029 (medium-term), and 2039 (long-term) on ground level along both sides of the project roads at sensitive receptors in the will all meet the Grade II national Standards of GB3095-1996 and GB3095-2012.3 These projections will be verified and confirmed through regular ambient air quality monitoring by local monitoring stations. The capacity development component under this ADB project includes urban traffic management technical assistance with emphasis on non-motorized transport, public transport and traffic safety, which will also support and cooperate with the project city/counties to improve the control of vehicle exhaust pollution and manage traffic flows along the proposed road networks.

30 Traffic noise. All domestic environment impact assessments have conducted comprehensive noise predictions along project roads for the short, medium and long term, which concluded that noise levels will meet the PRC standard in both daytime and nighttime. This will be verified through periodic noise monitoring at the noise sensitive sites identified along project roads.

31 Traffic safety. All roads have separate pedestrian sidewalks. All major roads have separate lanes for non-motorized traffic. Pedestrian-priority traffic lights, safety islands, crosswalks (zebra lines), and boarding bays/islands will be established at all intersections. The risk of accidental spills on project roads has been estimated - the probabilities of chemical spills on the proposed roads in the four project city/counties are predicted as extremely low. The project’s capacity building component will bring in urban traffic safety expertise to help the local governments to improve urban road safety, conduct traffic safety audits for the project city/counties to identify safety concerns in design, traffic safety feature implementation, traffic safety education and enforcement needs, and help to develop a program for public safety education and safety awareness.

32 Impacts related to district heating subcomponent. The sub-component’s adverse environmental impacts during operation primarily include noise, and small volume of wastewater (30~45 m3/d of backwash effluent) and solid waste from the HESs. An equalization and sedimentation tank of about 50m3 will be built in each HES for pH adjustment and sedimentation

3 GB3096-2012 will take effect in Jan. 2016, in which the standards for NO2 and CO in hourly average concentration are 0.2 mg/m

3

and 10.0 mg/m3, respectively.

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(SS≤400mg/L). The HESs will have a buffer distance of at least 20 m from the nearest household and will use low-noise water circulation pumps with noise levels controlled within 55 dB(A) at a distance of 1 m from the pump shields. Heat will be supplied by the planned CHP, operated and controlled by the China Power Investment Corporation. The TPPMO and the IA/PIU, with the support of the project implementation consultant, will review the environmental monitoring and compliance reports of the facility, confirm its compliance with national requirements, and provide suggestion for corrective actions if necessary. The review of the environmental monitoring and compliance reports will be reflected in the annual environment progress reports submitted to ADB.

33 Impacts related to operation of flood control and river revitalization component. The operation of the Kalangguer river rehabilitation component is not expected to generate major impacts. The Tacheng WRB will be responsible for the maintenance of the rehabilitated river. They will appoint sufficient personnel to regularly maintain the river, including removal of garbage and vegetation which may impair flood flow capacity. The flood monitoring and early warning system of Tacheng City will be upgraded. An important requirement to ensure success of the project component in Tacheng City is the release of sufficient water to sustain healthy ecological conditions (minimum ecological flow) from the Kalangguer Reservoir. The project’s impact on local water resources (through use of river water for irrigation of revitalized riverfronts) was reviewed and confirmed to be minimal. The TPG confirmed (through loan covenant) that no artificial structures will be constructed to impound water restricting free flow of flood waters. This will also avoid increased evaporation of water from increased water surfaces. The flood control works will have no impact on downstream areas.

34 Induced and cumulative impacts. The expanded road networks in the four project city/counties will facilitate urban development with significant population increases. This will induce increases in traffic flows and demand for public services. The project roads are in line with approved urban master plans and development control plans of the cities/counties, and will not induce uncontrolled development. Air quality and noise impacts due to increased traffic flow have been assessed in this IEE and mitigation measures have been identified where necessary. Significant indirect or induced negative impacts from transport infrastructure are not anticipated. The installation of water supply and wastewater collection networks will increase pressure on the water supply and wastewater treatment systems. Such increases have been fully considered in the urban master plans of the project city/counties, reviewed by the PPTA urban development and municipal services specialists and the environment specialists, documented in this IEE, confirming that water supply and wastewater treatment capacities will be adequate in the short, medium and long-term. With effective implementation of good construction management measures, common construction-related cumulative impacts can be adequately mitigated to acceptable level. The GRM will enable affected people to report any excessive disturbances during construction.

35 Climate risk, climate risk mitigation. Climate change projections in XUAR and Tacheng Prefecture were analyzed based on a review of scientific literature. Both annual mean temperature and annual precipitation are projected to increase significantly in northern and northwestern XUAR, where Tacheng Prefecture is located. The climate risk to the project is considered medium: While the project outcome is not expected to be significantly affected by climate change over the lifespan of the project, some of the outputs might be moderately affected. Urban flooding from rising temperatures and precipitation, causing early snow melt is a potential issue, and the Kalangguer River rehabilitation component is targeted at this phenomenon. The standard of flood protection provided by structural flood defenses will decline over time as a result of projected climate

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variability and change, and the project will help TPG prepare a strategy to adapt to that change.4 New and rehabilitated project roads in the project cities and counties has been aligned and designed to ensure that it will not be impacted by flooding, and it does not exacerbate flooding elsewhere by channeling or redirecting overland flows. Culverts will be sized for a 1 in 100 year flood to ensure that flood drainage is uninterrupted. Improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme weather events that might result from future climate change. Specific climate risk mitigation measures are also included in the capacity building component under the loan. Capacity building will be provided to local Housing and Construction Bureaus and Traffic Management Bureaus (for transport infrastructure and municipal services) and Tacheng Water Resources Bureau (for the Kalangguer River) to properly monitor, supervise and maintain project facilities, including annual review of maintenance budget to account for potential increases in maintenance requirements resulting from climate change.

36 Environmental Management Plan (EMP). An environmental management plan (EMP) has been prepared, which is presented in Appendix EMP of this IEE. The development of the EMP drew on the domestic EISs and TEIAs prepared by the EIA Institute, discussions with the TPPMO, the LPMOs, PIUs and IAs of project city/counties, and consultations with the Tacheng Prefecture EPB and the LEPBs, as well as other relevant government divisions and local communities. The EMP defines mitigation measures, monitoring requirements, training and consultation plans, reporting requirements, as well as responsibilities for environmental management and supervision during the various stages of implementation of the project.

37 The TPPMO will have the overall responsibility delegated by Tacheng Prefecture DRC for supervising the implementation of the EMP, coordinating the environment grievance redress mechanism (GRM) and reporting to ADB. Each PIU will establish an environmental management unit (EMU) which will take charge of coordinating the implementation of the EMP, ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management plans, organizing periodic environmental monitoring in compliance with the approved monitoring plan5, and reporting EMP implementation progress to TPPMO. Construction contractors will be required to respond to the environmental clauses for contractual terms and conditions defined in Appendix 2, and environmental management requirements defined in the EMP. Each contractor will be required to develop site-EMPs and will assign a person responsible for environment, health, and safety.6 Environment specialists will be hired under the project management consulting services (CS-ES). The CS-ES will advise the TPPMO, LPMOs, PIUs, and contractors on all aspects of environmental management and monitoring for the project.

B. Consultation, grievance redress mechanism (GRM)

38 Meaningful consultation for each subproject has been conducted during feasibility study

4 This will combine periodic assessment and review of the hydrology and the state of knowledge about climate change,

incremental upgrade of flood control facilities to restore the desired standard, and strong reliance on non-structural measures

(such as the review and strengthening of measures flood monitoring and early warning systems, emergency preparedness and

response plans, etc). 5 The PIUs will contract the local environment monitoring stations at project city/county level to conduct periodic environmental

quality monitoring during construction and operation in accordance with the monitoring plan 6 The site-EMPs shall include the following plans: (a) Site drainage and soil erosion protection; (b) Spill control and management; (c)

Environmental, health and safety management plan (EHSMP); (d) Surface water protection; (e) Temporary traffic management; (f)

Construction site access control.

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and domestic environmental impact assessments in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB’s Safeguard Policy Statement (2009). Public concerns have been adequately addressed and to the extent possible integrated into project design. Consultant and public participation will continue throughout project implementation. A public consultation and communication plan has been defined in the environmental management plan. Affected people will be consulted and informed through site visits and informal interviews by the PIUs (through their environmental management unit). Public meetings will be organized by the LPMOs and PIUs in the project city/towns prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. Prior to project completion report, surveys will be conducted in the project city/town to assess community satisfaction with project implementation, project outputs, and EMP implementation performance. The results will be documented in the project completion report (PCR). The project’s environmental information will be disclosed by the local EPBs and ADB as follows: (i) the project IEE is disclosed at www.adb.org; (ii) the Chinese EISs and TEIAs were disclosed on the website of the Tacheng Prefecture Environmental Protection Department (TPEPD); and (iii) the annual environment monitoring reports will be disclosed at www.adb.org.

39 A grievance redress mechanism (GRM) has been defined to deal with public complaints related to project activities during project implementation and operation. TPPMO will coordinate the environmental GRM, with local GRMs established at project city level and coordinated by the PIUs, which will follow the procedure and timeframe defined in the EMP. XPMO and ADB will be informed on, and involved in, the grievance resolution process. The loan implementation consultant will provide training on the GRM to ensure that responsibilities and procedures are clear.

C. Project Risks and Assurances

40 Project risks were assessed during the PPTA. The majority of environmental risks relate to design features and operational plans which will avoid or mitigate impacts, but which rely on the implementers’ commitment and capacity to implement and consistently follow-up. The remainder relate to the likelihood of unexpected negative impacts. The major risks are listed below:

i. Inadequate capacity of the TPPMO, IAs, PIUs and contractors in environment management, which could result in inefficient project and EMP implementation;

ii. Delay in construction of the linked combined heat and power plant (CHP);

iii. Poor design of Kalangguer River flood control and rehabilitation works with potential impact on downstream areas;

iv. Poor performance of facilities linked to the project (including water supply and wastewater treatment facilities).

41 Key legal assurances were agreed upon at loan fact finding stage and will be acted upon by the respective levels of governments to ensure sound project design and effective implementation of the EMP. Commitments by the executing agency and the implementing agencies will be incorporated into the project agreements as covenants to ensure that the measures are implemented in a timely and complete fashion, including (i) a commitment to complete the CHP by 2019; (ii) a commitment to minimize alterations to Kalangguer River (no dredging, no artificial impoundment structures); (iii) a commitment to appoint environmental specialist(s) under the project implementation consultancy services and other experts in environmental management and monitoring, river rehabilitation, restoration and maintenance, transport safety, and

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training/awareness raising; and a comprehensive capacity building and training component with strong focus on EMP implementation and supervision, and urban transport safety and river pollution control. The overriding assurance required is that the executing agency and the local government bodies as appropriate will ensure that the full range of effective measures set out in the project IEE and EMP are undertaken, and guarantees that the environmental management provisions and the environmental monitoring plan will be implemented effectively during project implementation, and that the implementation reports of the environmental management and monitoring plan in accordance with ADB requirements will be submitted in a timely fashion. Part of this monitoring and management commitment will be a commitment to implement and maintain an appropriate GRM. The full list of assurances is presented in the Conclusion chapter, and will be confirm at loan negotiation stage between ADB and the EA.

D. Overall Conclusion

42 All project components will support the PRC’s Western Development Strategy, Sustainable Development Policy, XUAR’s, Tacheng prefecture’s and project city/counties’ development master plans. The two rounds of public consultation indicated that the majority of the potential APs supported the project and project components and believed they would benefit the local economy, raise residents’ living quality including the minority groups, improve local environmental conditions, and effectively protect the local environment. Overall, the project’s potential environmental impacts are expected to be acceptable if all measures defined in the EMP are strictly implemented, and the environmental management and institutional capacity of TPPMO, the LPMOs, IAs, contractors and CSCs are strengthened through implementation of the training program in the EMP. Category B for environment is confirmed. No further surveys or studies are required as long as there are no major changes in the type and location of project facilities and activities proposed. The project is feasible from an environment safeguard point of view.

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II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Overview

43 The PRC has a wide range of laws, regulations, technical guidelines and standards that govern the way in which environmental protection and environmental impact assessment for construction projects must be implemented, including for pollution prevention and control on air, noise, water, ecology and solid waste, and technical guidelines on assessing atmospheric, noise, water and ecological impacts. The five domestic EIS Reports and six tabular environment impact assessments (TEIA) upon which this IEE is based were prepared by a licensed institute7 in accordance with the PRC Law on Environmental Impact Assessment (2003), the PRC Management Guideline on EIA Categories of Construction Projects (2008), the Technical Guidelines for Environmental Impact Assessment (HJ/T2-93), as well as the Guideline on Public Participation in EIA issued by the PRC Ministry of Environment Protection (MEP) in March 2006, and the Regulation for Public Disclosure of EIAs issued by the PRC NDRC in 2012.

B. The PRC’s Environmental Laws, Regulations, Guidelines, and Standards

44 The primary national laws and regulations that govern the environment impact study of the project are provided in Table II-1 and Table II-2, respectively. Table II-3 shows the relevant local laws and regulations.

Table II-1: Relevant National Laws

No. Law Year issued Relevance to project

1 Environmental Protection Law 1989

2 Urban and Rural Planning Law 2008 The project relates the project city/counties’ master plans

3 Solid Waste Pollution Prevention and Control Law 2005 The project involves solid waste disposal

4 Environmental Impact Assessment Law 2003

5 Water Law 2002 The project includes drinking water supply and river rehabilitation

6 Cleaner Production Promotion Law 2002 The project involves efficiency district heating component

7 Air Pollution Prevention and Control Law 2000 8 Noise Pollution Prevention and Control Law 1999 9 Land Administration Law 1999

10 Forest Law 1998 The project includes landscaping on roadsides (green belt) and rive bank

11 Water and Soil Conservation Law 1991 The project involves soil erosion control

12 Water Pollution Prevention and Control Law 2008 The project involves sewer collection pipeline component

13 Flood Control Law 1998 The project include a river rehabilitation and flood control component

14 Road Traffic Safety Law 2004 The project includes 4 roads components

7 Xinjiang Branch of Ecological Geography Institute of the Chinese Academy of Science.

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Table II-2: National Administrative Regulations

No. Regulation Year of effectiveness

1 Regulation on Pollution Control for Protection Zone of Drinking Water Source 1989 2 Regulation on EIA of Plans and Programs 2009 3 Regulation on Environmental Protection Management for Construction Projects 2003 4 Directive on Strengthening Wetland Protection and Management 2004 5 Environmental Protection Supervision Rules for Construction Projects 1998 6 Regulation on Protection of Wild Flora 1997 7 Requirements for the EIA Summary of Construction Project 2010

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

2001

9 National Biodiversity Strategy and Action Plan (2011-2030) 2010 10 Requirement for Social Risk Assessment of Large Investment Projects 2012 11 The National Biodiversity Strategy and Action Plan (2011-2030) 2010 12 National regulation for public disclosure of EIAs (NDRC) 2012 13 Regulations for Road Transport of Dangerous Goods 2010

Table II-3: Local Laws and Regulations

No. Law and Regulation Year issued

1 Environmental Protection Regulations of XUAR (revised edition) Feb. 2012 2 Construction Project Quality Management Regulation of XUAR Feb. 2008 3 Wild Flora Protection Regulations of XUAR Dec. 2006 4 Regulation on Soil Erosion Control in Key Areas in XUAR (revised edition) Oct. 2000 5 Regulations on desertification in XUAR May 2008 6 Regulations on Wild Animals Protection of XUAR (revised edition) 2004 7 Water Function Zoning in XUAR Dec. 2004 8 Environmental and Ecological Function Zoning in XUAR July 2005 9 Regulations on Water and Soil Conservation Law of the PRC in XUAR 2000 10 Regulation on Public Consultation for Constructions in XUAR 2013

45 The implementation of environmental laws and regulations is supported by a series of associated management and technical guidelines, and those applicable to the proposed project are summarized in Table II-4.

Table II-4: Applicable Environmental Guidelines No. Guideline Year/Code

1 Technical Guideline on EIA: Surface Water Protection 2006 2 List of Construction Projects Subject to Environmental Protection Supervision 2008 3 Guideline on EIA Classification of Construction Projects 2008 4 Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects 2009 5 Interim Guideline on Public Consultation for EIA 2006 6 Circular on Strengthening EIA Management to Prevent Environmental Risks 2005 7 Technical Guideline on EIA: Surface Water Environment HJ/T 2.3-1993 8 Technical Guideline on Environmental Risk Assessment for Construction Project HJ/T169-2004 9 Technical Guideline on EIA: Acoustic Environment HJ 2.4-2009 10 Technical Guideline on EIA: Atmospheric Environment HJ 2.2-2008 11 Technical Guideline on EIA: Ecological Assessment HJ 19-2011

46 The national environmental quality standard system that supports/evaluates the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function, i.e. pollutant emission/discharge standards and ambient environmental standards. The relevant main standards applicable to the proposed project are shown in Table II-5.

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

1 Standard for Flood Control GB50210-94 2 Urban Ambient Acoustic Quality Standard GB3096-2008 3 Noise Limit of Industrial Enterprises GB12348-2008 4 Noise Limit for Social Activities GB22337-2008 5 Domestic Drinking Water Quality Standard GB5749-2006 6 Surface Water Quality Standard GB3838-2002 7 Standard on Pollutant Discharges from Municipal Wastewater Treatment Plants GB18018-2002

8 Ambient Air Quality Standard GB3095-19968

9 Integrated Emission Standard of Air Pollutants GB16297-1996 10 Integrated Wastewater Discharge Standard GB8978-1996 11 Soil Quality Standard GB15618-1995 12 Groundwater Quality Standard GB/T14848-1993 13 Noise Limit for Construction Sites GB12523-1990 14 Control Standards for Pollutants in Sludge for Agricultural Use GB4284-1984 15 Pollution Control Standard for MSW Landfills GB16889-2008 16 PRC specification of Domestic MSW Sanitation Landfill CJJ17-2004

C. International Agreements

47 The PRC is signatory to a number of international agreements, including all major international agreements dealing with biodiversity and wetland protection, Climate Change etc. Those with direct and indirect implications for the project are listed in Table II-6.

Table II-6: Applicable International Agreements

No. Agreement Year Purpose (relevance to project)

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

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

2 Convention on Biological Diversity 1993 Conservation and sustainable use of biodiversity (the project includes reforestation)

3 United Nations Framework Convention on Climate Change

1994 Achieving stabilization of greenhouse gas concentrations in the atmosphere (the project involves low carbon WSPs for energy saving and GHG emission reduction)

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

2005 Further reduction of greenhouse gas emissions (same as above)

5 Montreal Protocol on Substances That Deplete the Ozone Layer

1989 Protection of the ozone layer (same as above)

6

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

1996 Fighting against desertification and mitigating the effects of drought

D. Applicable ADB Policies and World Bank’s EHS

48 ADB’s Safeguard Policy Statement (SPS, 2009) provides the basis for the project IEE. All projects funded by ADB must comply with the SPS. The purpose of the SPS is to establish an environmental review process to ensure that projects undertaken as part of programs funded under ADB loans are environmentally sound, are designed to operate in line with applicable regulatory requirements, and are not likely to cause significant environment, health, or safety hazards.

49 The PRC domestic EISs are prepared initially for the PRC approval processes, which are

8 A new standard has been issued in 2012 (GB 3095-2012), which will become effective on 1 Jan 2016.

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required to adopt PRC standards for the quality of water, air, and noise, etc. ADB’s SPS promotes good international practice as reflected in internationally recognized standards such as the World Bank Group’s Environmental, Health and Safety (EHS) Guidelines.9 The principles and standards of the EHS Guidelines are adopted by the ADB’s SPS. The general guidelines, in company with the sector guidelines, will provide the context of international best practice, and contribute to establishing appropriate targets for the environmental performance. EHS guidelines of relevance to the project include guidelines on road safety, waste management, energy conservation, water conservation, hazardous materials/wastes management, noise control and sanitation, and guidelines on community and occupational health and safety.

50 Compared with PRC EIA requirements, the SPS requires a number of additional considerations, including (i) project level GRM including documentation in the EMP; (ii) assessment of direct, indirect, induced and cumulative impacts; (iii) due diligence of project associated facilities, such as the CHP Plant, the Water Supply Plants (WSPs) and Wastewater Treatment Plants (WWTPs); (iv) protection of physical cultural resources if any; (v) climate change mitigation and adaptation; (vi) occupational and community health and safety requirements (including emergency preparedness and response). These requirements, which are usually weak in PRC EIAs, have been included in the domestic EISs to the EIA institute’s best knowledge and capacity. This project IEE complies with SPS requirements.

E. Scope of Assessment and Assessment Standards for Proposed Project Components

51 The assessment areas for air, noise, surface and groundwater and ecological impacts are defined by the technical guidelines for environmental impact assessment in the PRC, based on the environmental sensitivity of the project areas and vicinity as well as the nature of the project and its components. The domestic EISs and TEIAs followed these guidelines in defining the assessment scopes. The relevant assessment standards are identified in the following sections.

a. Drinking Water Quality Standard

52 The project includes water supply components (water distribution only without water source works or water treatment plant) in Tacheng City and Emin County. The tap water to be supplied to residents will require compliance with the PRC Drinking Water Quality Standard (GB5749-2006), in which 106 parameters must be met (Table II-7).

Table II-7: Drinking Water Quality Standards (GB5749-2006)

No. Parameter Standard

Routine Parameter of Drinking Water Quality

Microbiological parameter10

1 Total coliform (MPN/100ml or CFU/100ml) LD 2 Thermotoletant coliform (MPN/100ml or CFU/100ml) LD 3 Escherichia Coli (MPN/100ml or CFU/100ml) 4 Total plant count (CFU/ml) 100 Toxicological parameter

5 Arsenic (As, mg/L) 0.01 6 Cadmium (Cd, mg/L) 0.005 7 Chromium Hexavalent (Cr 6+, mg/L) 0.05 8 Lead (Pb, mg/L) 0.01 9 Mercury (Hg, mg/L) 0.001

10 Selenium (Se, mg/L) 0.01

9 “World Bank Group Environmental, Health, and Safety Guidelines”, April 30, 2007, Washington, USA.

http://www.ifc.org/ifcext/enviro.nsf/Content/EnvironmentalGuidelines

10 MPN= Most Probable Number; CFU: Colony forming unit.

17


11 Cyanide (CN-, mg/L) 0.05 12 Fluoride (mg/L) 1.0 13 Nitrate (mg/L) 10 14 Trichloromethane (mg/L) 0.06 15 Carbon tetrachloride (mg/L) 0.002 16 Bromate (when O3 is applied) (mg/L) 0.01 17 Formaldehyde (when O3 is applied) (mg/L) 0.9 18 Chlorite (when ClO2 is applied) (mg/L) 0.7 19 Chlorate (when compound chlorine dioxide is applied ) (mg/L) 0.7

Sensory Properties and General Chemical Parameter

20 Chromaticity (Unit of platinum cobalt color) 15

21 Turbidity (diffusing turbidity unit) NTU 1

22 Odor and Taste No odor, no taste

23 Appearance None

24 pH 6.5≤X<8.5

25 Aluminum (Al, mg/L) 0.2

26 Iron (Fe, mg/L) 0.3

27 Manganese (Mn, mg/L) 0.1

28 Copper (Cu, mg/L) 1.0

29 Zinc (Zn, mg/L) 1.0

30 Chloride (Cl-, mg/L) 250

31 Sulfate (SO4-mg/L) 250

32 TDS (mg/L) 1000

33 Total Hardness (CaCO3) (mg/L) 450

34 CODMn (mg/L) 3

35 Volatile phenols (phenol) (mg/L) 0.002

36 LAS (mg/L) 0.3

Radioactivity Parameter11

37 Total α radioactivity (Bq/L) 0.5

38 Total β radioactivity (Bq/L) 1

Non-Routine Parameter

Microbial indicators

39 Giardia cysts (count/10L) <1

40 Cryptosporidium oocysts (count/10L) <1

Toxicological parameter (mg/L)

41 Antimonium (Sb, mg/L) 0.005

42 Barium (Ba, mg/L 0.7

43 Beryllium (Be, mg/L) 0.002

44 Boron (B, mg/L) 0.5

45 Molybdenum (Mo, mg/L) 0.07

46 Nickel (Ni, mg/L) 0.02

47 Silver (Ag, mg/L) 0.05

48 Thallium (Ti, mg/L) 0.0001

49 Cyan chloride (CN- mg/L) 0.07

50 Chlorodibromomethane (mg/L) 0.1

51 Bromodichloromethane (mg/L) 0.06

52 Dichloroacetic acid (mg/L) 0.05

11

Radionuclide phase analysis is conducted if radioactivity value exceeds limits, to determine if the water is drinkable.

18


53 1,2-dichloroethane (mg/L) 0.03

54 Dichloromethane (mg/L) 0.02

55 THMs 1

56 1,1,1 - trichloroethane (mg/L) 2

57 Trichloroacetic acid (mg/L) 0.1

58 Trichloroaldehyde (mg/L) 0.01

59 2,4,6- trichlorophenol (mg/L) 0.2

60 Bromoform (mg/L) 0.1

61 Heptachlor (mg/L) 0.0004

62 Malathion (mg/L) 0.25

63 PCP (mg/L) 0.009

64 HCH (total amount, mg/L) 0.005

65 Hexachlorobenzene (mg/L) 0.001

66 Dimethoate (mg/L) 0.08

67 Parathion (mg/L) 0.003

68 Bentazone (mg/L) 0.3

69 Parathion-methyl (mg/L) 0.02

70 Chlorothalonil (mg/L) 0.01

71 Carbofuran (mg/L) 0.007

72 Lindane (mg/L) 0.002

73 Chlopyrifos (mg/L) 0.03

74 Glyphosate (mg/L) 0.7

75 DDVP (mg/L) 0.001

76 Arazine (mg/L) 0.002

77 Deltamethrin (mg/L) 0.02

78 2, 4 - dichlorobenzene oxygen ethanoic acid (mg/L) 0.03

79 Dichloro-diphenyl-dichlorothane (mg/L) 0.001

80 Ethylbenzene (mg/L) 0.3

81 Dimethylbenzene (mg/L) 0.5

82 1,1- dichloroethylene(mg/L) 0.03

83 1,2- dichloroethylene(mg/L) 0.05

84 1,2- dichlorobenzene(mg/L) 1

85 1,4- dichlorobenzene(mg/L) 0.3

86 Trichloroethylene(mg/L) 0.07

87 Trichlorobenzene(mg/L) 0.02

88 Hexachlorobutadiene(mg/L) 0.0006

89 Acrylamide (mg/L) 0.0005

90 Tetrachloroethylene (mg/L) 0.04

91 Toluene (mg/L) 0.7

92 DEHP (mg/L) 0.008

93 ECH (mg/L) 0.0004

94 Benzene (mg/L) 0.01

95 Styrene (mg/L) 0.02

96 Benzopyrene (mg/L) 0.00001

97 Chloroethylene(mg/L) 0.005

98 Chlorobenzene(mg/L) 0.3

99 Microcystin-LR(mg/L) 0.001

Physical Properties and General Chemical parameters (mg/L)

100 Ammonia Nitrogen(NH3-N, mg/L) 0.5

app:ds:lindane

app:ds:Chlopyrifos

app:ds:dichloro-diphenyl-dichlorothane

app:ds:chloroethylene

19


101 Sulfide (S, mg/L) 0.02

102 Sodium (Na, mg/L) 200

Table II-8: General Parameters and Requirements for Drinking Water Disinfectant

No. Disinfectant Exposure duration

with Water Limit in water

supplied (mg/L) Residue in water supplied (mg/L)

Residues in network end (mg/L)

103 Chlorine and free chlorine (mg/L)

≥30 min 4 ≥0.3 ≥0.05

104 Monochloramine (total chlorine, mg/L)

≥120 min 3 ≥0.5 ≥0.05

105 Ozone (O3, mg/L) ≥12 min 0.3 - 0.02/ ≥0.05 if chlorine is

added

106 Chlorine Dioxide (ClO2, mg/L)

≥30 min 0.8 ≥0.1 ≥0.02

b. Ambient Air Quality Standards

53 Assessment of ambient air quality was in accordance with Ambient Air Quality Standard of GB3095-1996) and GB3039-2012 Grade II standards (which will take effect in Jan. 2016 and which is compatible with guideline values recommended in the IFC EHS Guidelines). The specific standard values are shown in Table II-9.

Table II-9: Ambient Air Quality Grade II Standard (mg/m3)

Pollutant Time GB 3096-1996 (Grade II) GB3095-2012 (Grad II) EHS

SO2

Annual average 0.06 0.06 n/a

Daily average 0.15 0.15 0.125-0.05

(0.02 guideline)

Hourly average 0.50 0.50 n/a

PM10

Annual average 0.10 0.07 0.07-0.03

(0.02 guideline)

Daily average 0.15 0.15 0.075-0.15

(0.05 guideline)

NO2

Annual average 0.08 0.04 0.04 guideline

Daily average 0.12 0.08 n/a

Hourly average 0.24 0.2 0.20 guideline

CO Daily average 4.0 4.0 n/a

Hourly average 10.0 10.0 n/a

Source: the domestic EISs

54 Fugitive emission of particulate matter (such as dust from construction sites) is regulated under PRC‘s Air Pollutant Integrated Emission Standard (GB 16297-1996), which sets 120 mg/m3 as the maximum allowable emission concentration and ≤ 1.0 mg/m3 as the concentration limit at the boundary of construction sites, with no specification on the particular matter‘s particle diameter.

c. Acoustic Environment Quality Standards

55 In accordance with the PRC “Acoustic Environmental Quality Standard” (GB3096-2008), constructed new roads are classified as Class 4a or Class II. Sensitive areas such as schools, hospitals, nursing homes and other noise sensitive spots are evaluated in accordance with “Acoustic Environmental Quality Standard” (GB3096-2008) Grade II standards according to the environmental function zoning identified by the local EPBs. The applicable environmental noise

20

standard values and the applicable areas are shown in Table II-10.

Table II-10: Acoustic Quality Standards (dB (A))

Standard Category

Applicable Area PRC EHS

12

Day Night Day Night

II Outdoor of schools, hospitals (nursing homes, homes for the elderly), and areas beyond 50 m distance from edge of roads. Suburb area along the roads and Kalangguer River

60 50 55 45

4a Area within 50 m distance from edge of roads (including pipelines under the roads)

70 55 n/a n/a

d. Noise Limits for Construction Sites

56 Construction activities must be in accordance with “Noise Limits for Construction Site” standard (GB12523-90), see Table II-11.

Table II-11: Noise Limits for Construction Sites Standard (dB(A))

Noise limits

Daytime Night

70 55

e. Water Quality Standards

57 For surface water quality assessment, the determining standard will be Surface Water Ambient Quality Standard (GB3838-2002), which is comparable to, and thus considered, an internationally accepted standard. It defines five water quality categories for different environmental functions. Category I is the best, suitable for head waters and National Nature Reserves. Assessment of surface water quality focused mainly on the Kalangguer River Rehabilitation and Flood Control Component in Tacheng, of which the applicable standard is Grade II of Surface Water Environment Quality Standard (GB3838-2002) and the bridge construction in Emin County, of which the applicable standard is grade III standard of GB3838-2002. See the standard values in Table II-12.

Table II-12: Surface Water Quality Standards (mg/L, pH excluded)

Parameter pH CODMn BOD5 CODcr TP TN NH3-N Petroleum

Grade II Standard 6~9 ≤4 ≤3 ≤15 ≤0.1 ≤0.5 ≤0.5 ≤0.05

Grade III Standard 6~9 ≤6 ≤4 ≤20 ≤0.2 ≤1.0 ≤1.0 ≤0.05

Grade IV Standard 6~9 ≤10 ≤6 ≤30 ≤0.3 ≤1.5 ≤1.5 ≤0.5

Key: BOD5= 5 days biochemical oxygen demand, CODcr = chemical oxygen demand, CODMn = permanganate index, NH3-N=ammonia nitrogen; TN = total nitrogen; TP = Total Phosphorus

58 Groundwater Quality. The Category III standard of Groundwater Quality Standard (GB/T14848-93) is applicable for the project region (Table II-13).

Table II-13: Groundwater ambient quality standard for Category III (unit: mg/L, pH is dimensionless)

No. Item Category III No. Item Category III

1 pH 6.5-8.5 15 Nitrate≤ 20 2 Total Hardness ≤ 450 16 Nitrite≤ 0.02 3 KMnO4 Index≤ 3.0 17 NH4≤ 0.2

12

IFC and World Bank Group. 2007. Environment, health and safety guidelines.

app:lj:%E6%80%BB%E6%B0%AE?ljtype=blng&ljblngcont=0&ljtran=total%20nitrogen

21

4 Sulfate≤ 250 18 Fluoride≤ 0.05 5 Chloride≤ 250 19 Hg≤ 0.001

6 Fe 0.3 20 Se≤ 0.01 7 Mn 0.1 21 As≤ 0.05 8 Cu 1.0 22 Cd≤ 0.01 9 Zn 1.0 23 Cr6

+≤ 0.05

10 Mo 0.1 24 Fecal coliform (a/L) ≤ 3.0 11 Co 0.05

12 Volatile Phenol 0.002

13 Anionic surfactant≤ 0.3

f. Wastewater Discharge Standards

59 Discharge of wastewater from construction sites is regulated under PRC‘s Integrated Wastewater Discharge Standard (GB 8978-1996), which is an internationally recognized as defined in the EHS Guidelines of the IFC. Class I standards apply to discharges into Category III water bodies under GB 3838-2002. Class II standards apply to discharges into Categories IV and V water bodies. Class III standards apply to discharges into municipal sewers going to municipal WWTPs with secondary treatment. The local EPBs confirmed that the wastewater discharged from construction sites should be in accordance with “Integrated Wastewater Discharge Standard” (GB8978-1996). Specific standard values are shown in Table II-14.

Table II-14: Wastewater discharge standards for construction sites and dredged sediment disposal

sites (GB 8978-1996) Parameter Class I Class II Class III

(for discharging into Category III water body)

(for discharging into Categories IV and V water body)

( for discharging into municipal sewer)

pH 6 ~ 9 6 ~ 9 6 ~ 9

SS mg/L 70 150 400

BOD5 mg/L 20 30 300

COD mg/L 100 150 500

TPH mg/L 5 10 20

Volatile phenol mg/L 0.5 0.5 2.0

NH3-N mg/L 15 25 ---

PO42-

(as P) mg/L 0.5 1.0 ---

LAS (= anionic surfactant) mg/L

5.0 10 20

Source: Wastewater Discharge Standard (GB 8978-1996)

g. Emission Standard of Air Pollutants (dust, asphalt smoke)

60 Fugitive emission of particulate matter (such as dust from construction sites) is regulated under PRC‘s Air Pollutant Integrated Emission Standard (GB 16297-1996), which sets 120 mg/m3 as the maximum allowable emission concentration and ≤ 1.0 mg/m3 as the concentration limit at the boundary of construction sites, with no specification on the particular matter‘s particle diameter. Asphalt smoke during road construction and pipeline works will be in accordance with the Grade II standard of “Integrated Emission Standard of Air Pollutants” (GB16297-1996). The standard values are shown in Table II-15.

22

Table II-15: Integrated Emission Standard for Air Pollutants (mg/Nm3)

Pollutant Maximum allowable Emission

concentration Fugitive emission concentration limits for

monitoring points

Particles —— 1.0 mg/m3

Asphalt Smoke 40-75 mg/Nm3 No fugitive emission

h. Standard for Urban Area Environmental Vibration

61 Construction activities will cause vibration impact, and should comply with the “Standard for Urban Area Environmental Vibration (GB10070 88)”. The bridge and road works of the project are located near both sides of traffic trunk line, so the project shall comply with the fifth standard listed in Table II-16.

Table II-16: Vertical (Z) Vibration Standard Value for Various Urban Areas (Unit: dB)

Scope of applicable area Day Night

Special residential area 65 65

Residential, cultural and educational area 70 67

Mixed area and commercial center 75 72

Industrial centralized area 75 72

Both sides of traffic trunk line 75 72

Both sides of railway main line 80 80

Source: domestic EIS Reports

62 The Government of the PRC has a comprehensive program for the control and reduction of vehicle emissions. The current program13 includes the following main focus areas connected with vehicle emissions: (i) Improvement and stricter enforcement of national emission standards for new vehicles; (ii) Improvement of conventional fuels to make them cleaner with less GHG emissions; (iii) Use of alternatives or cleaner fuels; (iv) Improved maintenance and inspection of vehicles; and (v) Encouragement for the scrapping of older high emission vehicles.

F. The Environmental Management Institutional Framework and the EIA Approval Process

63 The PRC Ministry of Environment Protection (MEP)’s Guideline on Jurisdictional Division of Review and Approval of EIAs for Construction Projects (2003) provides two prescribed lists of projects for which EIAs must be reviewed and approved. The guideline was amended in 2009 to include a list of construction projects for which EIAs require MEP’s review and approval, and a list of projects for which EIAs will be delegated to the provincial EPD or lower. The project qualifies for the latter. The Tacheng Prefecture EPB was authorized by XUAR EPD to review and approve the EISs and tabular EIAs for all projects components. The institutional framework for the EIA approval process for this project is summarized in Table II-16.

Table II-17: Institutional Frameworks for the EIAs Approval

Responsible Division Scope of work

Tacheng Prefecture EPB (i) Organizes experts for EISs and tabular EIAs evaluation, including compliance with appropriate laws, regulations and standards; and (ii) Final EISs and tabular EIAs approval.

The project city/counties’ EPBs

Environmental management and supervision during project implementation, including the management and supervision of the implementation and fulfillment of the

13

The PRC’s “Air Pollution Control Action Plan (2013)”, issued by Ministry of Environment Protection.

23

environmental mitigation measures and environmental monitoring (through the local EMSs).

Source: EIA Institute

64 In the PRC, the enforcement of environmental laws and regulations rests with the environmental protection authorities within each level of government. At the national level, the MEP is the regulatory, enforcement and supervision authority. Each province has an environmental protection department (EPD). The environmental management authorities at the sub-provincial level or city and county levels are the environmental protection bureaus (EPBs). These authorities are supported by their environmental monitoring stations (EMSs) and environmental protection research institutes.

65 There is an EMS in each of the project city/counties, which is responsible for regular monitoring of ambient environmental qualities and the compliance monitoring of pollution sources in the project areas. The EMS conducts compliance monitoring for the project sites in the four project city/counties semiannually.

66 The five EIS reports and six tabular EIAs for the project components were prepared by the EIA institute14 holding a national Grade A certificate in accordance with the Management Guideline on Qualification of EIA Institutes (MEP Ministerial Order No. 26, 2005). The final domestic EISs and TEIAs were approved on 25 August and 2 September 2014, respectively. The PPTA consultants assisted in the finalization of the domestic EISs.

Table II-18: Date for EISs/EIAs Completion and Approval EIA

Type No. EIA of Component

Date of EIS/TEIA completion

Date of EIS/TEIA approval

EIS Report

1 Tacheng City Infrastructure & Municipal Services 8 July 2014 2 Sep. 2014 2 E’min County Infrastructure & Municipal Services 3 Tuoli County Infrastructure & Municipal Services 4 Yumin County Infrastructure & Municipal Services

5 Tacheng City Kalangguer River Rehabilitation and Flood Control

Tabular EIA

6 Tacheng City Sewage 30 June 2014 2 Sep. 2014

7 Tacheng City Water Supply 2 Sep. 2014 8 Tacheng City Heating Supply 25 Aug. 2014 9 Tacheng City Municipal Solid Wastes 2 Sep. 2014

10 E’min County Water Supply 2 Sep. 2014 11 E’min County Sewage 25 Aug. 2014

Source: EIA Institute

14

The Xinjiang Branch of Ecological Geography Institute of Chinese Academy of Science (Grade A EIA Institute).

24

III. DESCRIPTION OF THE PROJECT

A. Introduction

67 The proposed project will support the development of Tacheng City and the towns of Emin, Tuoli and Yumin in XUAR, the People’s Republic of China (PRC). The main objective of the project is to support the local municipalities in: (i) upgrading their urban infrastructures and municipal services in order to improve living conditions for the urban residents and (ii) enhance the capacity of their border cities and towns to respond to the challenges derived from the promotion of regional corporation and border trade development. The project will address urgent needs in urban infrastructure and municipal services and will make provision for: (i) Kalangguer River rehabilitation in Tacheng; (ii) new and upgrade district heating, water supply, sanitary sewer, municipal solid waste management in Liaota New District; (iii) new urban roads and bridges in Liaota New District and alley rehabilitation in Tacheng; (iv) new and upgrade of urban roads and bridges as well as municipal services in Emin; (v) new urban road in Tuoli; and (vi) new and rehabilitation of urban roads and municipal services in Yumin. Project rationale and description is presented below.

B. Project Rationale and Justification

68 The PRC has made remarkable progress in economic development and poverty reduction since 1980, but such progress has not been balanced across different regions. Located in the northwest of the PRC, XUAR is a border area linking the PRC to Central Asia and covers almost one-sixth of the total area of the country. In 2013, its population was approximately 22.65 million (about 1.65% of the population of the PRC), 60% of which comprises 36 ethnic minority groups, the largest portion of these being Uygur. XUAR has lagged behind in the economic development and remains one of the poorest and least developed provinces in the PRC. In 2013, XUAR’s GDP per capita at CNY37,847 was below the PRC average of CNY41,810. In 2011, the per capita disposable income of urban households in XUAR was CNY19,874, which was the second lowest among all the PRC provinces and autonomous regions. Such wide regional disparities prompted the Government of the PRC to launch in 2000 the National Strategy for Development of the West, with the aim to promote balanced economic growth and to raise the living standards in the region. The strategy focuses on developing infrastructure, protecting the environment, and strengthening economic cooperation and trade with neighboring provinces and countries. Recognizing the need for greater national support, the Government of the PRC also inaugurated a twinning scheme whereby assistance from other provinces will be used to strengthen the capacity in XUAR and improve local living standards. Nineteen nominated provinces and/or municipalities are providing financial contributions since 2011 and will continue to 2020.

69 Tacheng Prefecture is situated in the northwest of XUAR sharing a 480-kilometer (km)-long border with Kazakhstan. Due to its strategic geographical location along key trade routes between the PRC and Central Asia (usually referred as the “Silk Road”), border trade is playing an increasingly key role in the local economic development. Tacheng Prefecture has seven border land ports with Kazakhstan including Baktu near Tacheng City. In order to promote border trade, the PRC central government has cooperated with the local government to build both expressway and railroad lines from Karamay to Tacheng15, and to upgrade the existing Baktu Port facilities. This will bring in a big opportunity for Tacheng City including its neighboring counties Emin, Yumin

15

The Karamay - Tacheng expressway is scheduled to open in 2015. The Karamay - Tacheng railways started construction in April

2014.

25

and Tuoli to become a transportation hub and border trade center.

70 While the promotion of border trade has led in recent years to robust GDP growth for Tacheng Prefecture, its population of 1.05 million (2012) is still lagging behind significantly in terms of income levels and living conditions in comparison to central areas of XUAR and eastern provinces of the PRC. Both GDP per capita at CNY 35,836 (2013) and disposable income at CNY 16,464 (2013) are considerably below the national average of CNY 41,810 and CNY 24,565, respectively. Tacheng Prefecture suffers from various urban environmental problems due to its harsh natural environment, exacerbated by a lack of investment in key urban infrastructure and a high demographic pressure. These factors have led to a high level of urban environment degradation and are increasingly affecting the living conditions of the urban populations who have to do without proper basic infrastructures and municipal services.

71 With an intensification of rural-urban migration, the percentage of urban population in Tacheng Prefecture has grown significantly in recent years up to 75% (2012) of total population. A considerable share of this new urban population resides in urban alleys without pavement, street lighting and other fundamental facilities, resulting in very difficult living conditions, particularly during the severe winters. The project cities and towns are also home for large numbers of ethnic minorities, ranging from 37% to 74% of total populations in Tacheng City and Tuoli County respectively (2012) and many of these minority members experience considerable difficulties in adapting to the changing urban, economic and social conditions. All these aspects will be targeted by the proposed project.

72 The cities of Tacheng, Emin, Tuoli, and Yumin all suffer from outdated urban infrastructure and municipal services namely roads, water supply, sewerage, central district heating and solid waste management systems. In addition Tacheng City lacks proper protection from the regular seasonal flooding of the Kalanggur river. This weak urban infrastructure is holding back not only socioeconomic development for residents but also wider regional economic integration across the prefecture and the facilitation of border trade development. These priorities will also be targeted by the proposed project.

73 Strategic fit. The proposed project supports ADB’s Strategy 2020 goal of livable and sustainable cities through creation of a cleaner and healthier environment. It also contributes towards achieving the objective of greater physical connectivity set under the Regional Cooperation and Integration (RCI) Strategy of ADB. The project is aligned with ADB’s country partnership strategy to support inclusive and environmentally sustainable growth by promoting growth oriented and resource efficient urbanization. It also directly supports the main thrust of ADB’s Urban Operation Plan by promoting green, competitive, and inclusive cities. Similarly, the project is in line with the PRC Government’s Twelfth Five-Year Plan as it supports balanced urbanization with the development of cities that are livable, resource conserving, and inclusive and sector objective of improving and piloting best practice on water, solid waste, and municipal services.2 It also supports the PRC’s National Plan on New Urbanization (2014–2020) by accelerating the development of small and medium cities and by promoting harmonious and coordinated development between cities and surrounding small towns. The proposed project is also in line with the urban development master plan in each project city.

74 Continuity of development initiatives and incorporation of lessons. The project design incorporates lessons from previous ADB-financed urban development projects in the PRC, particularly the four ongoing Xinjiang projects, namely in the domains of river rehabilitation, road construction and maintenance and setting up of solid waste management systems. Following the 3R principles, the project is envisaged to play a demonstration role for similar cities with basic

26

systems of collection and sorting of solid waste. The project will also strengthen support for capacity development starting at the early stage of project preparation, with special focus on (i) improving awareness of ADB policy and procedural requirements to facilitate smooth implementation and timely compliance, and (ii) strengthening long-term sustainability of the project-built facilities.

75 Special features. The project will have several special features:

• Riverbank stabilization and restoration. The Project will provide flood protection along the Kalangguer River to 1-in-50 years flood protection standard. Composite revetment comprising ecological protection slope will be applied, creating an ecological corridor along the banks of Kalangguer River. The shrubs and trees will stabilize embankments, enhance public amenities, and improve the living environment and public health of the local residents, with additional benefits of carbon sequestration and sand fixation.

• People centered urban transport. Tacheng City is a small to medium size city with the urban population less than 200,000. The public buses, bicycles and walking should be the main travel means for urban residents. As one of the special features, the project pays special attention to develop a people-centered urban transport system. The proposed urban roads will include separated NMT lanes when there is adequate space within the construction red lines; adequate widths of sidewalks; public bus stations including bay bus stations; channelization design and pedestrian safety at intersections. The lessons learned from the urban development of other cities in PRC of building wider urban roads without much considerations of public transport, NMT and pedestrian traffic, resulting traffic congestion and air pollution, have been considered.

• MSW management. The existing MSW management system in Tacheng City is based on outdated practices that have been discontinued by many PRC cities several years ago. There are many MSW collection stations at street intersections or street sides with spacing of less than 100 m. The urban residents bring and place the garbage to the nearby collection station, and the city MSW trucks come to load the garbage, transport and dispose the MSW to the landfill site outside the city. The problems for the system include: (i) secondary pollution at the collection stations from bad smell and leachate, especially during the summer; (ii) lack of sorting, reusing, and recycling of MSW. The proposed MSW component will introduce a direct MSW collection and disposal system at selected communities to serve as the demonstration project. MSW compaction trucks with automatic loading capacity and garbage barrels specially designed for the truck will be introduced, and the truck will automatically load the garbage in the barrels, compact it and transport it to the landfill site, some 11-km outside of the city. 2-bin garbage barrels for recycle and non-recycle MSW will be set up in the selected communities. In addition, the demonstration recycle stations will be set up at the selected communities with the separated recycle collection containers for paper, plastic glass, and old clothes.

• Stormwater management. Average annual precipitation in Tacheng is less than 300 mm. As a result, most cities in XUAR do not have separated stormwater drainage systems. The urban runoff is simply to the nearby natural drainage ditches. The project will introduce roadside stormwater collection and infiltration systems that will direct road runoff into roadside vegetation areas for infiltration and groundwater recharge.

• Environmentally friendly high efficiency CHP for heating supply. The district heating network in Tacheng City will utilize waste heat from the planned combined heat and power

27

plant (CHP), with a heating supply efficiency of 83%, in contrast to traditional heat-only district heating system (average 70% efficiency), polluting small boilers (average 60% efficiency), and family stoves (average 50% efficiency). The local environment will improve as a result of the reduction of PM10, SO2, NOx and other harmful compounds that contribute to acid rain, decreased crop production, and water pollution. The component will have the following impacts in the area: (i) increase urban coverage of the district heating services area, and reduce per capita coal consumption and emissions; (ii) reduce traffic hazards caused by coal and slag transport vehicles in urban areas; and (iii) improve public health and the living environment in areas now affected by emissions, noise, and flue dust from the small boiler houses and family heating stoves.

C. Impact, Outcome and Outputs

76 The project impact is the improved economic growth, border trade capacity and living conditions in the project border cities and counties. The project outcome is the improved urban infrastructures, municipal services and border trade capacity in project border cities and counties. Indicative project outputs are summarized below and in Table III-1: Overview of, and described in more detail in the following sections.

77 Output 1: Improved urban infrastructure and municipal services in Tacheng City, including: (i) construction of 13 urban roads with a total length of 29.5 km, with emphasis on developing pedestrian/bicycle and public transport; (ii) installation of a 45.4 km water supply piping network; (iii) installation of a 48.8 km sanitary sewer piping network; (iv) installation of a 37.2 km primary hot water heating pipe network and 21 hot water heat exchange stations; (v) rehabilitation of 14.1 km alleyways; (vi) upgrade of security monitoring and MSW equipment for Baktu Port; (vii) improvement of the MSW management promoting 3R principles; (viii) upgrading of city operation and maintenance (O & M) equipment; and (ix) rehabilitation of 15.2 km Kalangguer River embankment works for flood risk management .

78 Output 2: Improved urban infrastructure and services in Emin County, including: (i) rehabilitation of one (3.2 km) and construction of five urban roads with a total length of 10.1 km; (ii) installation of a 8.3 km water supply piping network; (iii) installation of a 9.9 km sanitary sewer piping network; and (iv) upgrading of maintenance equipment.

79 Output 3: Improved urban infrastructure and municipal services in Tuoli County, including (i) the construction of the outer ring road with a total length of 14.1 km, and (ii) the upgrade of city maintenance equipment.

80 Output 4: Improved urban infrastructure and municipal services in Yumin County, including: (i) rehabilitation of three (4.9 km) and construction of three new urban roads with a total length of 9.7 km, promoting pedestrian/bicycle and public transport; and (ii) upgrading of maintenance equipment.

81 Output 5: Improved capacity and institutional arrangements. The component will strengthen capacity and institutions for the project’s management and operation. It will provide expert support and advice on project implementation including contract management, financial management, safeguard and social monitoring and capacity development activities on ADB policies and regulations. The component will also include three specific subcomponents to strengthen the capacity of the EA and IAs in relation to project subsectors: (a) support to the IAs to improve the overall MSW management capacity especially to introduce and implement 3R MSW management principles; (b) development and implementation of a strategy to promote border trade

28

and logistic development to improve the border trade capacity in considerations of local economic and production characters; and (c) an urban transport capacity development program including holistic urban road design and road safety audit, people-centric urban transport planning, road network management and maintenance.

Table III-1: Overview of Project Components and Subcomponents No. Description Type/Classification Unit Length/Capacity 1. Improved urban infrastructure and municipal services in Tacheng City

A Tacheng Transport Infrastructure

1 Third Ring Road Urban Major m 3,867 Third Ring Road Bridge 20 m single span void slab, 26 m width 2 Fifth Ring Road Urban Major m 2,678 Fifth Ring Road Bridge 20 m single span void slab, 26 m width 3 Tiyuguan Xi Road Urban Major m 1,866 4 Chanye Yi Street Urban Major m 2,200 Chanye Yi Street Bridge 20 m single span void slab, 26 m width 5 Chanye Nan San Road Urban Major m 1,800 6 Second Ring Road Secondary m 3,463 7 Tianyuan Nan Road Secondary m 2,032 8 Xixing Nan Road Secondary m 2,032 9 Heshan Nan Road Secondary m 2,032 He Shan Nan Road Bridge 20 m single span void slab, 26 m width 10 Fourth Ring Road Secondary m 2,184 11 Chanye Si Street Secondary m 3,016 Chanye Si Street Bridge 20 m single span void slab, 20 m width 12 He Mei Road Urban Major m 1,656 13 He Mu Nan Road Secondary m 620 He Mu Nan Road Bridge 20 m single span void slab, 20 m width Subtotal = 29,447

B Baktu Port Equipment Improvement

MSW and Street Cleaning Equipment set 1 Security Monitoring System set 1 C Alley Rehabilitation Branch m 14,057

D Municipal Service Facilities

1 Water Supply Pipe Network PE & DI pipe m 47,661 2 Sanitary Sewer Pipe Network HDPE & RC m 48,791 3 Primary Heating Piping Network Steel m 40,452 4 Heat Exchange Stations ea 27 E Kalanggur River Rehabilitation m 15,223

4 Bridges of 60 m span with widths of 12 -24 m

F Municipal Solid Waste Management MSW stations, garbage container, MSW equipment, etc.)

LS 1

2. Improved urban infrastructure and municipal services in Tuoli County

A Emin Transport Infrastructure

1 Arxiate Road - Rehabilitation Urban Major m 3,224 Arxiate Road – New Urban Major m 664

2 Wenhua Road Secondary m 931 3 Guihua Wu Road1 Urban Major m 1,285 4 Guihua Qi Road Branch m 1,962 5 Guihua Jiu Road Secondary m 2,065

Subtotal = m 10,131

B Water Supply Pipe Network PE & DI m 8,260 C Sanitary Sewer Pipe Network RC & HDPE m 9,865 3. Improved urban infrastructure and municipal services in Tuoli County

1 Outer Ring Road Urban Major m 14,090

4. Improved urban infrastructure and municipal services in Yumin County

A Yumin Transport Infrastructure

1 Guihua Yi Road Secondary m 1,476

29


2 Guihua Er Road Urban Major m 1,876 3 Longzhen Road (Rehab) Secondary m 2,338 4 Yujinxiang Road (Rehab) Secondary m 418

5 Yujinxiang Road (Rehab) Bus station at Bilingual Kindergarten

Secondary m 953

6 Hong Hua Road (Rehab) Bus station at County Hospital

Branch m 1,168

6 Donghuan Road Secondary m 1,505 Subtotal = m 9,734

B Water Supply and sewer pipelines m Note 116

C Urban Cleaning Equipment, MSW Container & Trash Bin set 1 5. Capacity Development and Institutional Strengthening

A Project implementation support B Institutional Capacity Development Source: FSR and PPTA Consultant

D. Output 1 - Improved urban infrastructure and municipal services in Tacheng City

a. Tacheng Transport Infrastructure

82 The subcomponent will include 13 roads, of which 5 are urban major roads and 7 are urban secondary roads, and six 20 meter span bridges. The total road length is 29.5 km. The roads, as shown in Map B and Table III-2, are part of the new urban road networks at Liaota New District, which is the administration and supporting area for Baktu Port at about 10 kilometers at the border with Kazakhstan. The construction of the new urban area started a few years ago and some of the urban major roads have been completed or under construction. The proposed road component will build the remaining urban roads to form the road network so that they can be more functional to serve the area. The road network will connect the new urban area to the existing city center, and they are in compliance with the approved city master plan for the urban area. The sequence of road construction has been defined in accordance with the municipality’s priorities and needs, through a lengthy negotiation process, derived from development priorities and road connectivity. The sequence is reflected in the procurement plan.

Table III-2: Tacheng Roads and Bridges

No. Name Classification ROW

Width (m) Design Speed

(km/h) Design Live

Load Length (m)

1 Third Ring Road Urban Major 50 50 BZZ-100 3,867

Third Ring Road

Bridge 20 m single span void slab, 26 m width

2 Fifth Ring Road Urban Major 50 50 BZZ-100 2,678

Fifth Ring Road

Bridge 20 m single span void slab, 26 m width

3 Tiyuguan Xi Road Urban Major 30 50 BZZ-100 1,866 4 Chanye Yi Street Urban Major 46 50 BZZ-100 2,200

Chanye Yi Street

Bridge 20 m single span void slab, 26 m width Roadway I

5 Chanye Nan San

Road Urban Major 46 50 BZZ-100 1,800

6 Second Ring Road Secondary 42 40 BZZ-100 3,463 7 Tianyuan Nan Road Secondary 42 40 BZZ-100 2,032 8 Xixing Nan Road Secondary 42 40 BZZ-100 2,032 9 Heshan Nan Road Secondary 42 40 BZZ-100 2,032

16

The water supply and sewer pipelines will be installed by using domestic funding.

30

Heshan Nan Road

Bridge 20 m single span void slab, 20 m width Roadway II

10 Fourth Ring Road Secondary 42 40 BZZ-100 2,184 11 Chanye Si Street Secondary 36 40 BZZ-100 3,016

Chanye Si Street


12 Hemei Road Urban Major 50 50 BZZ-100 1,656 13 Hemu Nan Road Secondary 36 40 BZZ-100 620

Hemu Nan Road


Total= 29,447

Source: FSR and PPTA Consultant

83 The design of the urban roads is based on the principle of promoting people centered urban transport system with emphasis on providing pedestrian, bicycles (NMT) and public transport facilities. The separated NMT lanes are provided wherever there is enough space within the construction red lines, the adequate sidewalk width is provided, and the type and location of bus stations are considered. The road cross section details, including the bridges, are summarized in Table III-3. Road cross sections for the different project roads are presented in Figure III-1 to Figure III-5.

Table III-3: Cross Section Details of Tacheng Transport Infrastructure

R Sdwk (m) R NMT (m)

R Shldr/

Sep (m) R Lane (m)

Median

(m)

L Lane

(m)

L Shldr/ Sep

(m)

L NMT

(m)

L Sdwk

(m)

ROW

(m)

Third Ring Road 3.00 4.00 3.00 11.00 8.00 11.00 3.00 4.00 3.00 50.00

Third Ring Road Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00

Bus Station (7 in-lane bus stops)

Fifth Ring Road 3.00 4.00 3.00 11.00 8.00 11.00 3.00 4.00 3.00 50.00

Fifth Ring Road Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00


Tiyuguan Xi Road 2.00 4.00 2.00 7.00 0.00 7.00 2.00 4.00 2.00 30.00

Chanye Yi Street 3.00 4.00 5.00 11.00 0.00 11.00 5.00 4.00 3.00 46.00

Chanye Yi Street Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00


Chanye Nan San Road 3.00 4.00 5.00 11.00 0.00 11.00 5.00 4.00 3.00 46.00

Second Ring Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Tianyuan Nan Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Xixing Nan Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Heshan Nan Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Heshan Nan Road Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00

Fourth Ring Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Chanye Si Street 2.00 4.00 4.00 8.00 0.00 8.00 4.00 4.00 2.00 36.00

Chanye Si Street Bridge 3.00 4.00 0.00 8.00 0.00 8.00 0.00 4.00 3.00 30.00

Hemei Road 3.00 4.00 3.00 11.00 8.00 11.00 3.00 4.00 3.00 50.00

Hemu Nan Road 2.00 4.00 4.00 8.00 0.00 8.00 4.00 4.00 2.00 36.00

Hemu Nan Road Bridge 3.00 4.00 0.00 8.00 0.00 8.00 0.00 4.00 3.00 30.00

ROW = right-of-way (red l ine), R = right, L = left, Sdwk = s idewalk, Shldr = shoulder, Sep = separation

(Source: PPTA Consul tants )

Cross Section

31

Figure III-1: Cross Section of Tacheng Second Ring Road, Fourth Ring Road, Tianyuan Nan Road,

Xixing Nan Road and Heshan Nan Road

Figure III-2: Cross Section of Third and Fifth Ring Roads.

Figure III-3: Cross Section of Changye Yi Street and Changye Nan San Road

Figure III-4: Cross Section of Tiyuguan Xi Road

Figure III-5: Tianyuan Nan Road, Xixing Nan Road, Heshan Nan Road

b. Baktu Port Equipment Improvement

84 The subcomponent will provide a security monitoring system at the Baktu port, MSW

32

handling equipment, and operation and maintenance equipment for the port service area and facilities. The summary of the equipment upgrade is shown in Table III-4. The equipment and facilities will help improve the quality and safety of services at the port, including traffic safety (thus minimizing risk of accidents and related spills); boarder control (thus reducing risk of illegal trafficking of dangerous or protected goods and/or species).

Table III-4: Baktu Port Equipment Upgrade No Name Unit Quantity

1 Water Spray Truck each 1 2 MSW Compaction Truck (5 ton) each 1 3 Street Cleaning Truck each 2 4 Cherry Picker each 1 5 Snow cleaning truck/plow each 2

6 Snow Sweeping Vehicle

each 1

7 Inspection Vehicle each 2 8 Garbage Barrel each 30 9 2-bin Trash Bin each 60

10 Security Monitoring System each 1 Source: FSR

c. Tacheng Allay Rehabilitation

85 Due to lack of funding, a lot of existing alleys in the low-income urban area as well as at the junction between urban and rural areas are in poor condition. Many of them are not paved and without proper street lighting. The project will provide pavement as well as street lighting on those deteriorating alleys. The alley rehabilitation will cover the center city and nearby villages including Bali Village, Kalangguer Village, Yuanyi Village, Zuogong Village and Kaladun Village. The total length of the rehabilitated alleys is about 14 km, and the details are summarized in Table III-5.

Table III-5: Tacheng Allay Rehabilitation

No Description Width(m) Length (m)

1

Center City Alley 1 4 207 Alley 2 5 187 Alley 3 5 644 Alley 4 4 155 Alley 5 5 423

subtotal = 1,617

2

Bali Village Alley 1 7 729 Alley 2 4 246 Alley 3 5 384 Alley 4 4 270 Alley 5 5 305 Alley 6 6 653 Alley 7 6 385 Alley 8 5 334 Alley 9 5 161

Alley 10 5 142 subtotal = 3,608

3

Kalangguer Village Alley 1 4 534 Alley 2 4 111 Alley 3 4 140 Alley 4 4 80

33

Alley 5 4 196 Alley 6 4 251

subtotal = 1,312

4

Yuanyi Village Alley 1 4 169 Alley 2 4 209 Alley 3 4 63 Alley 4 4 62

subtotal = 503

5

Zuogong Village Alley 1 3 97 Alley 2 5 79 Alley 3 4 41 Alley 4 4.5 74 Alley 5 4.5 94 Alley 6 3 97 Alley 7 4.5 251 Alley 8 4.5 519 Alley 9 3 501

Alley 10 3 495 Alley 11 3 486

subtotal = 2,735

6

Kaladun Village Alley 1 4 194 Alley 2 7 253 Alley 3 3 54 Alley 4 4 135 Alley 5 5 1,059 Alley 6 6 269 Alley 7 5 538 Alley 8 5 127 Alley 9 5 116

Alley 10 6 149 Alley 11 5 191 Alley 12 5 802 Alley 13 5 194 Alley 14 4 89 Alley 15 4 112

subtotal = 4,282 total 14,057

Source: FSR and PPTA Consultant

d. Tacheng Water Supply Pipeline

86 The water supply subcomponent will build water distribution network from the existing WTP to the new urban area. Most of the water distribution pipes will be constructed along the new urban roads supported by the project. The project will install a total of 47.7 km water supply pipelines and the associated fire hydrants, manholes and other related facilities (Table III-66).

Table III-6: Tacheng Water Supply Subcomponent

No Name Diameter (mm) Pipe Material Length

(m)

1 PE Pipes

DN200 PE 8711 DN250 PE 1246 DN300 PE 16660 DN350 PE 2109 DN400 PE 8054

subtotal = 36,780

34

2 Ductile Iron Pipes

DN500 DI 3435 DN600 DI 5116 DN800 DI 1416

DN1000 DI 914 subtotal = 10,881

Total Length = 47,661 Type Unit Quantity

3 Water Supply Facilities Valve manhole Concrete Block each 130 Discharge manhole Concrete Block each 5 Air release manhole Concrete Block each 48 Fire hydrant each 480

Note: DI = Ductile Iron Pipe, PE = Polyethylene Pipe Source: FSR

e. Tacheng Sanitary Sewer Pipeline

87 There are two existing sanitary sewer lines along the exiting No. 1 and No. 2 Roads in Liaota New District. The existing sewer lines are connected to the existing wastewater treatment plant (WWTP), located south of Tacheng City. The project will build the sanitary sewer network connecting to the existing WWTP. Most of the sewer lines will be built along the project roads. A total of 48.8 km sewer lines will be built including 1,220 manholes. The summary of the sanitary sewer system is shown in Table III-7.

Table III-7: Tacheng Sanitary Sewer Pipeline Subcomponent

No Name Diameter (mm) Pipe Material Length

(m)

1 HDPE Pipe DN300 HDPE 10,415

DN400 HDPE 16,010

2 Reinforced concrete pipe

DN500 RC 10,361

DN600 RC 3,555

DN700 RC 4,250

DN800 RC 4,200

Total = 48,791

3 Manhole (each) 1,250 mm 1,220 Source: FSR

f. Tacheng District Heating

88 The proposed district heating component will build 40.5 km primary heating pipelines and 27 heat exchange stations with a supply capacity of 100,000 to 200,000 m2 each. The insulated heating supply pipes will be laid using the direct burying method. The summary of the heating components is shown in Table III-8. The heat source is a planned local combined heat and power plant (CHP), located in the industrial zone of the Liaota New District. The CHP will have a capacity of 2x350 MW. The generated waste heat from the CHP will be connected to the existing heating network to provide heating for the entire urban area, including the area supported by the project. As the CHP becomes operational and starts to supply heat, the three existing heat-only boilers will be retrofitted as backup heat sources during peak heat demand periods.

Table III-8: Tacheng District Heating Component

No Name Diameter (mm) Pipe

Material Working Pressure

(Mpa) Temperature (℃)

Length (m)

1 Primary Heating Piping Network

D219×6 Steel 1.6 130/70 1,592 D273×6 Steel 1.6 130/70 2,694 D325×7 Steel 1.6 130/70 1,132

35

D478×7 Steel 1.6 130/70 1,766 D529×8 Steel 1.6 130/70 1,054 D630×8 Steel 1.6 130/70 2,740 D820×8 Steel 1.6 130/70 4,708

D1020×10 Steel 1.6 130/70 2,731 D1220×10 Steel 1.6 130/70 1,809

subtotal = 20,226 Total Length = 40,452

2

Heat Exchange Stations

Type Unit Quantity Service area

(m2)

#1 to #3 150,000 m2 3 450,000

#4 to #17 200,000 m2 14 2,800,000

#17 to #27 100,000 m2 10 1,000,000

Total = 27 4,250,000 Source: FSR

g. Kalangguer River Rehabilitation

89 The Kalangguer river rehabilitation component will stabilize and revitalize 15.2km of riverbanks along the Kalangguer river section running upstream and through Tacheng urban area. According to the city master plan, the area along the river is designated as city tourism development area and urban green area. It is the government’s intention to integrate the river flood control and urban green open space development. The rehabilitation scheme is developed based on the principles of ecologically friendly river rehabilitation by using natural materials such as stones and vegetation. A compounded river cross section is adopted, with the first level embankment consisting of natural stones to contain normal water flow, and the second level embankment made from vegetation and bushes reinforced by geo-grid to contain large flows during the flooding periods. During normal and low flow, the second level embankment will serve as the urban green area for open space and recreation area. The river rehabilitation component includes the following six sections (Map C):

(i) Sta. 7+400 to Sta. 9+400 (L=2.0 km). This is the beginning section of the river rehabilitation component. Both sides of the river are mainly farmland and natural open area (waste land). A gabion embankment will be used. The river channel width will be maintained at 120 m and the average gabions embankment height will be about 1.8 m.

(ii) Sta. 9+400 to Sta. 17+121 (L=7.7 km). The area along this river section is designated as urban green area. A compound river embankment will be applied. A first level embankment, at 20 m width and the average depth of 0.5 m, will be constructed with natural stones for normal and low-flow regimes. A second level embankment will have two 25-m wide sections. The first section is the lower embankment next to the main channel. The embankment is made from the geo-gird reinforced natural grass surface. The second section is the upper part of the embankment made from geo-grid reinforced bushes. The total width of the second level embankment is 50 m at each side of the river. At the top of the river embankment, a 20 m wide tree line will be planted at both sides of the river, and a passage way at the top of the embankment to serve both as flood control service and maintenance access and the walking trail for city green space will be included.

(iii) Sta. 21+607 to Sta. 23+004 (L = 1.4 km). This section of the river rehabilitation will be used compound river embankment with the small stone channel in the middle for normal water flow and the second level of geo-grid reinforced vegetation and bushes for the flood water.

(iv) Sta. 23+004 to Sta. 23+880 (L = 0.87 km). This is the river section for city to develop as the

36

city park. A compound embankment will be used. However, the first level of river embankment will follow the natural river channel with a variable width to fit the natural river. For the second level embankment, the existing highlands away from the river channel will be used as the embankment. Some earth berms will be used to fill up the lower area to contain the flood water. No major earthwork will be done for the area to protect the natural river settings.

(v) Sta. 23+880 to Sta. 26+455 (L = 2.6 km). This is the second part of the river embankment at the downstream of the city park. A similar concept will be used to protect the natural settings. The existing river channel will be reinforced with riprap to contain the normal water flow, and the highlands at the end of the flood plain will be used as the second level embankment. Some earth berms will be placed at the lower areas.

(vi) Sta. 26+455 to Sta. 27+123 (L = 0.67 km). This is the last section of the river rehabilitation at the downstream of the highway bridge. The current river channel experiences severe bank erosions. The river channel will be re-graded and reinforced with the gabion and the river channel width will be 60 m and the embankment height about 1.8 m.

90 The section of Sta. 17+121 to Sta. 21+607 (L = 4.5 km) is not included in the project, which is funded by the Ministry of Water Resources. A conventional reinforced concrete embankment has been used and the construction is underway. The river embankments from the project need to be integrated with the section that is under construction, and the details shall be developed during next step preliminary design. The summary of the river rehabilitation for all six sections as well as the section under construction by the domestic funding is shown in Table III-9.

91 Four bridges crossing the rehabilitated section of Kalangguer River will be built. The bridge type and locations of the bridges are shown in Table III-9. Based on the alternative study, three span 20 m void slab bridge is recommended.

Table III-9: Summary of Kalangguer River Rehabilitation

92 Kalangguer Riverbank vegetation. According to the FSR, 36.4 ha will be vegetated on the two sides of river embankment works. This will include the planting of some 58,700 trees, 94,000 bushes/flowers. This is in addition to the some 1.0 million m2 of alpine meadow to be

No Description Length (m)

Channel

W (m)

Windbreak

Width (m) Embankment Type

Height

(m)

1 Sta 7+400 to Sta 9+400 2,000 120 Gabion 1.8

2 Sta. 9+400 to Sta 17+121 7,721 120 20 x2 20 m stone + 50x2 green 1.5

Sta 17+121 to Sta 21+607.3 4,486 (in construction by domestic funding)

3 Sta 21+607.3 to Sta 23+007.3 1,400 120 20 x 2 20 m stone + 50x2 green 1.5

4 Sta 23+007.3 to Sta 23+880 (wetland) 873 varies Riprap at channel + dam

5 Sta 23+880 to Sta 26+455 2,575 varies Riprap at channel + dam

6 Sta 26+455 to Sta 27+123 668 60 Gabion 1.8

Total (w/o domestic section) = 15,237

Total (w/ domestic section) = 19,723

7 Bei Huan Road Bridge 60 L 12 W

8 Guihua #1 Bridge 60 L 13 W




37

planted on the embankment and river slopes. The species to be planted are summarized in Table III-10 below.

Table III-10: Kalangguer Riverbank Vegetation17

Item No. Species Unit Number

Tree

1 Siberian elm each 14,677

2 Fraxinus sogdiana each 14,677

3 White poplar each 14,677

4 Privet each 14,677

5 Silver birch each 14,677

Subtotal 58,708

Bush

1 Lonicera microphylla each 18,816

2 Crataegus cuneata each 18,816

3 Shrubs smartweed each 18,816

4 flowering plum each 18,816

5 Lilac each 18,816

Subtotal

94,080

Grass 1 Alpine meadow ha 100

Source: the FSR

h. Tacheng MSW Management

93 The MSW management component will improve solid waste collection and disposal in Tacheng, and promote waste reduction, reuse and recycling (3R). The project component will upgrade the existing MSW handling and urban maintenance equipment including procurement of waste collection and transportation equipment; construction of public toilets; and upgrading of urban cleaning and maintenance equipment fleet. The summary of the MSW management component is shown in Table III-11.

94 In addition, the project will pilot domestic solid waste source separation in 3 selected communities (Huaxi, Guangming and Minhang) where source segregation of waste and direct collection and disposal will be promoted, and recycling stations installed with different sorting containers for paper and cardboard, plastics, and glass will be setup at the selected communities. The recycle station will be placed at the designated the location in the selected communities, maintained and managed by the home association crew. The maintenance crew will take the recycle items from the station to the city recycle collection stations for cash reward. A public awareness program shall be developed and implemented during the project implementation to educate the publics for domestic solid waste sorting and recycling, and coordination with the government agency to develop policies and incentive program to encourage the publics for recycling and reuse, and raise the public awareness of low carbon urban life, resource and energy conservation, recycling, reuse, and to protect and preserve the natural environment.18

17

The EIS confirmed that all the vegetation in Table III-10 are local species. 18

Detailed operation procedures and the corresponding training program for the pilot will be developed and implemented during

project implementation to ensure the successful implementation of the component.

38

Table III-11: Tacheng MSW Subcomponent

E. Output 2: Improved urban infrastructure and services in Emin County

a. Emin Transport Infrastructure

95 The component will construct five urban roads, including a section of 3.2 km road rehabilitation, of which three are urban major roads and one is urban secondary roads and one branch road, and one 5 span bridge. The total road length is 10.1 km. The roads include existing and new urban roads in the center city and the city outskirt area. The project roads and bridge are in compliance of the city master plan. The summary of the roads and bridges is shown in Table III-12.

Table III-12: Emin Transport Infrastructure Component

No Name Classification ROW Width

(m) Design Speed

(km/h) Design Live

Load Length (m)

1 Arxiate Road - Rehabilitation Urban Major 22 40 BZZ-100 3,224

Arxiate Road - New Urban Major 44 40 BZZ-100 664 2 Wenhua Road Secondary 44 30 BZZ-100 931 3 Guihua Wu Road Urban Major 44 40 BZZ-100 1,285 Binhe Road Bridge 5 span 20 m box beam and width of 26 m

4 Guihua Qi Road Branch 24 20 BZZ-100 1,962 5 Guihua Jiu Road Secondary 34 30 BZZ-100 2,065

Total 10,131 Source: FSR

No Description Type Unit Qty Remark

A. MSW Source Sorting

1. Huaxi Community 2-bin ea 102

2. Guangming Community 2-bin ea 60

3. Minhang Community 2-bin ea 61

B. Recycle Station

1. Huaxi Community 3 Container ea 1

2. Guangming Community 3 Container ea 1

3. Minhang Community 3 Container ea 1

C. MSW Bins, Containers, Equipment & Toilets

1 Intellectual Garbage Collection Station ea 2

2 Steel Garbage Container 0.24 m3ea 300

3 MSW Transport Truck 3 tons ea 4

4 Movable MSW Container (coupled with 3) 3 m3ea 32

5 Self Loading MSW Compaction Truck ea 5

6 Side Loading MSW Truck 3 tons ea 3

7 Armed MSW Truck 10 tons ea 1

8 Movable MSW Container (coupled with 7) 10 m3 ea 3

9 Toilet - Concrete Masonry 87.6 m2ea 7 civil work

10 Toilet - movable 10 m2ea 2

11 2-Bin Trash Bin ea 212

12 Street Cleaning Truck ea 3

13 Snow Cleaning Truck 2.2 m wide ea 3

14 Dump Truck 30 ton ea 3

15 Water Spray Truck 10 ton ea 1


39

96 The design of the urban roads is based on the principle of promoting people centered urban transport system with emphasis on providing pedestrian and NMT and public transport facilities. The separated NMT lanes are provided wherever there is enough space within the construction red lines, and the adequate sidewalk width is provided. Road cross sections are shown in Figure III-6 to Figure III-9.

Figure III-6: Cross Section of Arxiate Road – Rehabilitation

Figure III-7: Cross Section of Arxiate Road – New

Figure III-8: Cross Section of Wenhua Road (E’min)

Figure III-9: Cross Section of Guihua Wu Road

b. Emin Water Supply Pipeline

97 The water supply component will build water pipeline along the project roads. The project

40

will build a total of 7.7 km water supply pipeline and the associated fire hydrants, manholes and other related facilities (Table III-13).

Table III-13: Emin Water Supply Component

c. Emin Sanitary Sewer Pipeline

98 The sanitary sewer pipeline will be built along the project roads. A total of 8.8 km sewer pipe line will be built. The summary of the sanitary sewer system is shown in Table III-14.

Table III-14: Emin Sanitary Sewer Pipeline

F. Output 3: Improved urban infrastructure and services in Tuoli County

99 The project component will construct the new Outer Ring Road, at the outskirt of the existing urban area. Tuoli is on the route connecting Tacheng and Urumqi. The project road is in compliance of the approved urban master plan. The length of the road is 14.1 km. There are 17 culverts or small bridges along the road, and the summary of the road is shown in Table III-15. The road cross section is shown in Figure III-10.

Table III-15: Tuoli Road and Bridge/culvert

No Name Category ROW Width

(m) Design Speed

(km/h) Design Live Load Length (m)

1 Outer Ring Road Urban Major 30 40 BZZ-100 14,090 Culverts and small bridge (span 1 - 10 m) - total of 17.

Total = 14,090

No Name

Diameter

(mm)

Pipe

Material

Length

(m)

1 PE Pipe DN200 PE 2,620

DN300 PE 1,840

2 Ductile Iron Pipe DN400 DI 1,340

DN500 DI 2,460

Total = 8,260

Size Unit Quantity

3 Valve Manhole 1500mm ea 90

4 Air Release Manhole ea 9

5 Fire Hydrant ea 80

DI = Ductile Iron, HDPE = High Density Polyethylene, PE = Polyethylene


No Name

Diameter

(mm)

Pipe

Material

Length

(m)

1 HDPE Pipe DN300 HDPE 2,070

DN400 HDPE 2,405

2 Reinforced Concrete Pipe DN500 RC 2,130

DN600 RC 440

DN800 RC 2,820

Total = 9,865

3 Manhole 1250 Con Block 290 ea


41

Figure III-10: Cross Section of Tuoli Outer Ring Road

G. Output 4: Improved urban infrastructure and services in Yumin County

100 The project output will construct six urban roads, (including a section of 0.95 km road rehabilitation), out of which 5 are urban secondary roads and 1 is a branch road. The total road length is 9.7 km. The roads are existing and new urban roads in the center city and the city outskirt area. The project roads and bridge are in compliance of the approved urban master plan. The summary of the roads is shown in Table III-16. The Guihua road cross section (major road) is shown in Figure III-11.

Table III-16: Summary of Proposed Roads in Yumin

No Name Category ROW Width

(m) Design Speed

(km/h) Design Live

Load Length

(m)

1 Guihua Yi Road Secondary 30 30 BZZ-100 1,476 2 Guihua Er Road Major 40 40 BZZ-100 1,876 3 Longzhen Road (Rehab) Secondary 20 30 BZZ-100 2,338 4 Yujinxiang Road (Rehab) Secondary 18 30 BZZ-100 418 Yujinxiang Road (new) Secondary 20 30 BZZ-100 953 Bus station at Bilingual Kindergarten

5 Honghua Road (Rehab) Branch 20 20 BZZ-100 1,168 Bus station at County Hospital

6 Donghuan Road Secondary 24 30 BZZ-100 1,505 Total = 9,734

Source: FSR

Figure III-11: Cross Section of Guihua Er Road (Yumin)

101 The output will also contribute to upgrade the existing sanitation equipment including MSW collection and transport trucks, street cleaning vehicles, landscaping and lawn care equipment, etc. The list of the equipment upgrade is shown in Table III-17.

42

Table III-17: Yumin Municipal Services Maintenance Equipment

H. Due Diligence for Associated and/or Linked Facilities

102 The following associated and/or linked facilities have been identified: For Tacheng City Component: (i) existing Kalangguer Reservoir; (ii) existing wastewater treatment plant (WWTP); (iii) existing water supply plant (WSP); and (iv) planned combined heat and power (CHP) generation plant. For Emin County Component: the existing WWTP and WSP.

103 The Kalangguer Reservoir. The Kalangguer River flows through the eastern part of the city. . The Kalangguer Reservoir is located upstream of the proposed Kalangguer River Rehabilitation section, 33 km northeast of Tacheng urban area. The drainage area for the reservoir is 366 km2 and the maximum design capacity is 39 million m3. The reservoir dam is 465 m long and 62 m high, and the maximum flood discharge rate is 185 m3/s. The reservoir was designed by Shan’xi Hydropower Design Institute for flood control, irrigation, hydropower generation and fish farming, and the reservoir was completed and put into operation in 2002. The reservoir structure is a rock-filled dam with concrete face, side-bank spillway. The diversion structure (conduit system) is located on the west side of the reservoir. The major design parameters of reservoir are shown in Table III-19.

Table III-18: Main Characteristic of Kalangguer Reservoir

No. Items Unit Quantity

1 Total storage capacity of the reservoir m3

3.808 million

2 Dead storage capacity of the reservoir m3 0.5 million

3 Designed flood control standard Return period

(years) 50

4 Maximum height of the dam M 61.5

5 Length of the dam M 565.4

6 Maximum discharge volume of the spillway m3/s 167.3

No Name Type Unit Quantity

1 MSW Compaction Truck 8 ton ea 2

2 Enclosed MSW Compaction Truck 8 m3

ea 2

3 Street Sweeping Vehicle ea 2

4 Water Spray Vehicle 1 40 ton/h ea 1

5 Dump Truck ea 2

6 Loader 3 m3

ea 2

7 Sidewalk Clean Cart 2 m wide ea 2

8 Cherry Picker 16 m ea 1

9 Snow Cleaning Machine 2.2 m wide ea 2

10 Water Spray Vehicle 2 10 ton ea 1

11 Truck Crane 12 ton ea 1

12 Water Leaking Detector 50 -320 Hz ea 1

13 Brush Cutter ea 4

14 Compress Air Tree Branch Cutter ea 2

15 Tree Branch Cutter ea 4

16 Lawn Mower ea 2

17 Lawn Mower II ea 2

18 Lawn Aerator ea 1

19 Snow Cleaning Machine 3 m wide ea 1


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7 Type of the dam Rock-filled dam

8 Type of diversion tunnel Circular (3.6m diameter)

9 Length of diversion tunnel m 600

10 Width of the spillway m 10

11 Length of spillway m 40

12 Maximum flow of spillway m3/s 122

13 Water quality of the reservoir Grade II of GB3838-2002

14 Minimum ecological flow provision m3/s 0.12 m

3/s

Source: PPTA consultant

104 The water supply plants (WSP) in Tacheng City: There is an existing WSP (No. 3 WSP)19 with the total treatment capacity of 15,000 m3/d in Tacheng City, supplied by groundwater (four wells, groundwater). The main supply pipeline is a spheroidal graphite cast iron pipe with a diameter of 600 mm. The quality of water supplied meets the national drinking water quality standard of GB5749-2006. There are also 87 wells owned by enterprises in Tacheng City, which will be gradually closed according to the city’s master plan. Due to lack of water supply distribution pipeline network, the current coverage of Tacheng’s water supply is 61% only.

105 According to the city’s master plan, two new WSPs will be constructed before 2020. The No.4 WSP, with a water supply capacity of 13,000 m3/d, will be located 3 km northeast of Tacheng urban area, which will use groundwater as water source. The No.5 WSP, with a capacity of 40,000 m3/d (2018) and 120,000 m3/d (2030), will use Abdulla River water as the water source. The tap water demand for Tacheng City is 75,000 m3/a (2018) and 145,900 m3/d (2030), respectively. Both current and long term water supply capacities of Tacheng City are sufficient to satisfy the demand. The current problem of water supply system is lack of distribution pipelines.

Table III-19: Balance of Water Supply Capacity and Demand (m³/d)

Year Item No.3 WSP No.4 WSP

No.5 WSP Water supply by individual

enterprises Water

balance

2018

Water supply capacity

15,000 13,000 40,000 10,000 +3,000

Water demand 75,000

2030

Water supply capacity

15,000 13,000 120,000 0 +2,100

Water demand 14.59

Source: the domestic EIS

106 The existing WWTP in Tacheng City. There is an existing WWTP in Tacheng City, located in the north of the city, with a capacity of 20,000 m3/d, which was put into operation in 2004. The WWTP adopts the Carrousel Oxidation Ditch treatment process, and its effluent meets the Class I-B effluent quality standard (GB 16297-1996). A new WWTP, located southwest of the city with the capacity of 40,000 m3/a will be put into operation by the end of 2015. The WWTP treatment process is Carrousel Oxidation Ditch treatment process, and the effluent will comply with the PRC Class I-B quality standard. Wastewater collected in the project sewers will be discharged into the new WWTP. According to the FSR, the total wastewater to be collected in the planned sewers will be 21,800 m3/d after the project completion, with a sewage collection and treatment rate of 80%.

107 Municipal solid waste landfill in Tacheng. The waste landfill in Tacheng is located along

19

The No.1 and No.2 WSP, with the total water supply capacity of 3550 m3/d were closed in 2000.

44

Taer Road, about 11 km away from the city center, and has a capacity of 190t/d, with a total volume of 1.50×106 m³. The landfill is being expanded southwards. The capacity of the expanded landfill will be 180t/d, covering an area of 18 ha, and having a design service life of 13 years. The landfill is designed in accordance with PRC standards for sanitary landfills.

Figure III-12: The existing Tacheng WWTP Figure III-13: Kalangguer Reservoir in

Tacheng City

108 Due Diligence for Associated CHP Plant in Tacheng City. The heat source for the proposed district heating network is the planned CHP. The due diligence for the associated CHP plant was performed by the PPTA Consultants based on (i) the draft EIA Report of the CHP plant prepared by Xinjiang Dingrao Engineering Consulting Company (March 2014), and (ii) introduction for the CHP plant in the FSR of ADB project.

109 The associated CHP plant will be located 5.0 km southwest of Tacheng urban area (at longitude 82°56’56’’ E and the latitude 46°46’ 28’’ N) with a total land area of 56.1 ha. The investor of CHP is China Power Investment Corporation. The FSR for the CHP has been approved by XUAR DRC on 2 July 2013 (approval document No. “XUAR-DRC-Energy- 2013/2215”). The FSR will require approval from the PRC’s NDRC. The designed capacity of the CHP is 2×350 MW supercritical steam CHP cogeneration units. The designed maximum heat supply is 685.7 MW, which is enough for the heating demand load of 537.5 MW. The design parameters of the CHP are listed in Table III-21.

110 The current district heating supply rate in Tacheng city in 64.4% only, while the heating supply by small low efficiency boilers and family stoves are 7% and 28.6%, respectively, which is one of the major air pollution sources in winter. After completion of the proposed project component, the district heating supply rate will increase to 90% (2020) according to the draft EIA for the CHP.

Table III-20: Key Technical Parameters of the CHP

Items Unit Total

CHP cogeneration units (supercritical steam power and heat generation) each 2

Maximum heat supply capacity MW 685.7

Maximum heating demand load MW 537.9

Steam extraction pressure MPa 0.4

Rated Steam extraction speed t/h 250

Maximum stream extraction speed t/h 550

Boiler efficiency % 93

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Items Unit Total

Maximum continuous rating t/h 1,170

Annual heat supply Million GJ 5.16

Source: Project FSR and PPTA Consultant

111 Emission Projections. According to the draft EIA of the CHP, the predicted stack emission concentrations of SO2, flue dust (PM10) and NOx from the CHP plant will be 79.88 mg/m3, 14.36 mg/m3 and 188.36 mg/m3, respectively (Table III-21), which meet the national standards of 100 mg/m3, 30 mg/m3 and 100 mg/m3, respectively stipulated in the Emission Standard of Air Pollutants for Thermal Power Plant (GB13223-2011).20 To strictly comply with the standards, the following measures are defined in the draft EIA and the FSR for the CHP:

i) Building a 210 m high boiler stack with a diameter of 7.5 m to disperse and minimize the direct impact of emissions on adjacent areas;

ii) Using electric-bag composite dust collector with a flue dust removal efficiency of at least 99.95%;

iii) Using a wet calcium flue gas desulfurization facility that is at least 95% efficient;

iv) Using SCR-NH3 method with an NOx removal rate of at least 80%;

v) Installing an online automatic monitoring system on the smokestack of the CHP plant to monitor SO2, NOx and PM10;

vi) Construction of wastewater treatment facility in the slag yard;

vii) Mufflers will be installed on vents of the boiler and air blowers and sound-proof shields will be installed on the power generators to mitigate the noise impact; and

viii) Since the circulating cooling water will be recycled for heating supply, no industrial wastewater will be discharged into the sewer system in heating seasons.

Table III-21: Expected Pollutant Emissions from the CHP21

Pollutant Item

Emission Concentration Standard Concentration/ Emission

Rate22

Design Coal

Calibration23

Coal

SO2 Expected emission concentration (mg/m

3)

79.88 80.77 100

PM10 Expected emission concentration (mg/m

3)

14.36 24.53 30

NOx Expected emission concentration (mg/m

3)

80 80 100

Source: Chinese EIA Report.

112 The draft EIA predicted that the air quality within the scope of 2500 km2 (25 km south-north, and 25 km east-west) around the CHP plant, including concentrations of SO2, NOx and PM10, will meet the Grade II standard of the National Ambient Air Quality Standard (GB3095-2012) during the CHP plant operation. During the CHP plant operation, the air quality parameters of SO2, NOx and

20

The figures are more stringent than the World Bank EHS recommended limits for Small Combustion Facilities Emissions (of

50-150 mg/m3 for PM; 2,000 mg/m3 for SO2)

21 Source: Draft EIA Report of the CHP.

22 PRC’s Emission Standard of Air Pollutants for Thermal Power Plant (GB13223-2011).

23 The worst coal may be used during operation, such as low heat value, etc.

46

PM10 at selected points will be monitored by the TEMS once a month to closely supervise and assess the air pollution impact to the surrounding area of the CHP plant.

113 Noise Mitigation. Sound-proof equipment will be installed to mitigate the noise impact. It is expected that the noise during the CHP plant operation will meet the national standard of Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008) as shown in Table III-22.

Table III-22: Noise Mitigation Measures for Major Equipment; dB(A)

No. Equipment Quantity Original Noise Mitigation Measure Reduced Noise

1 Boiler steam relief 2 110 Muffler 20-25

2 Steam turbine generator 2 95 Sound-proof shield 20

3 Coal crusher 2 95 Factory workshop sound

insulation 20

4 Coal mill 10 100 Sound-proof shield 20

5 Draft fan 4 85 Muffler 20

6 Primary air fan 4 95 Muffler 20

7 Secondary air fan 4 95 Muffler 20

8 Air compressor 8 90 Sound-proof shield 20

9 Water feed pump 3 91 Factory workshop sound

insulation 20

Source: Draft EIA Report.

114 The WSPs in Emin County: There are three existing WSPs with a total treatment capacity of 12,000 m3/d in Emin County. The water source of the WSPs is groundwater (120-m deep aquifer). The main pipeline of water supply is a 13 km long spheroidal graphite cast iron pipe with the diameter of 600 mm. The quality of water supplied meets the national drinking water quality standard of GB5749-2006.

115 The WSPs No. 1 and No.2 will be closed by the end of 2015. The No.3 WSP will be expanded to 20,000 m3/d by the end of 2015, while a new Nan’an WSP, with a capacity of 10,000 m3/d will be completed by the end of 2015; the capacities of the No.3 and Nan’an WSPs will be further expended to 30,000 m3/d and 26,000 m3/d, respectively, by the end of 2030 according to the master plan. Both the current and long term water supply capacities of the County will be sufficient to satisfy the demand. The current problem of water supply system is lack of distribution pipelines resulting in the water supply coverage of 60% only.

Table III-23: Water Supply Plants in E’min County (m3/d) WSP Current Capacity (2014) Capacity by the end of 2015 Capacity by the end of 2030

No. 1 WSP 1500 Will be closed No. 2 WSP 2500 Will be closed No. 3 WSP 8000 20,000 30,000

Planned Nanan WSP 0 10,000 26,000 Total water supply 12,000 30,000 56,000

Water demand 15,000 28,000 54,000 Water balance 3,000 2,000 2,000

Source: the domestic EIS

116 The existing WWTP in Emin County. There is an existing WWTP in the county, located 5

47

km west of the county town (total land area is 26.7 ha), with a capacity of 13,000 m3/d, which was put into operation in 2006. The WWTP adopts the coarse & fine screens + sedimentation + lagoon treatment process, and its effluent meets the Class II-B of the PRC WWTP’s effluent quality standard. The current wastewater generated in the county town is 18,000 m3/a.

117 According to the county’s master plan, a new WWTP, with a treatment capacity of 12,000 m3/d (by 2017), will be constructed at southwest of the county town. The treatment process will be Oxidation Ditch, and the effluent quality will meet the Class I-B of the PRC WWTP’s effluent quality standard. Wastewater to be collected in the project sewers will amount to 9,500 m3/d, to be treated in the new WWTP, which will be operated by Tacheng HCB.

48

Table III-24: Tentative Project Implementation Schedule

49

IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE)

118 The description of the local environmental conditions prior to project implementation establishes (i) the environmental settings within which the project components will be implemented, and therefore the needs to be designed to suit, and (ii) the environmental values, which will be changed (either negatively or positively) by the project. The baseline environmental monitoring and survey undertaken by local EMS and the EIA Institute for each of the project city/counties was determined by the feature of the component and proposed the environmental parameters which were relevant to their impact assessment.

A. Environmental Setting of Xinjiang Uygur Autonomous Region and Tacheng Prefecture

119 Situated in the northwest PRC, XUAR is one of the most remote regions in the PRC. Its 1.66 million km2 land represents about one-sixth of the total territory of the country, making it the largest of PRC's regions and provinces. XUAR shares 5,600 km of frontier with Mongolia in the northeast, then Russia, Kazakhstan, Kyrgyzstan and Tajikistan in the west, and then Afghanistan, Pakistan and India in the southwest. Tacheng Prefecture is located in the northwest of the XUAR. It borders the Republic of Kazakhstan in the north and west, with the borderline of 150 km. The total area of the prefecture is 104,547 km2, with the total population of 968,400 (2012). The GDP of the prefecture achieved 40.93 billion CNY in 2012. Tacheng Prefecture consists of Tacheng City and six counties of E’min, Yumin, Tuoli, Wusu, Shawan and Hoboksar. The first four are the proposed ADB financed project city/counties.

120 Geology. Most of XUAR is young geologically, having been formed from the collision of the Indian plate with the Eurasian plate. Older geological formations occur principally in the far north where the Junggar Block is geologically part of Kazakhstan, and in the east which is part of the North PRC Craton. The landform comprises three east-west mountain ranges embracing two basins in between. The three mountain ranges are Altay Mountain in the north, Tianshan Mountain in the middle, and Kunlun Mountain in the south. The two basins are the Junggar Basin between Altay Mountain and Tianshan Mountain, and the Tarim Basin, which is the largest in the PRC, is between Tianshan Mountain and Kunlun Mountain. In the center of the Tarim Basin stretches the Taklimakan Desert, the largest shifting desert in the PRC and the second largest in the world. XUAR has within its borders the point of land which is most remote from the sea. This is the so-called - Eurasian pole of inaccessibility‖ in the Dzoosotoyn Elisen Desert, 2,648 km from the nearest coastline (straight-line distance).

121 Climate. Tacheng Prefecture is located in the temperate arid and semi-arid climate zone. The average temperatures (1971-2010) in January is -10.4℃. The average temperature (1971-2010) in

July is 22.9℃. The extreme high temperature is 41.3℃, and the extreme low temperature is

-37.1℃. The average annual precipitation is 290 mm, and the average annual evaporation is 1,600 mm. The annual sunshine duration is about 2,800 to 3,000 hours, and the annual average frost-free season ranges 130 to 190 days.

122 Water resources. XUAR has an annual runoff of some 88 billion m3 of surface water together with 25 billion m3 of exploitable groundwater. Glaciers covering 24,000 km2 currently store over 2,580 billion m3 of water in XUAR. In Tacheng Prefecture, there are some 1,280 glaciers with a total area of 1,071 km2, and a stored water capacity of 73.64 billion m3, accounting for 2.85% of the XUAR’s total. There are 107 rivers in the prefecture with an annual surface water runoff of 5.47 billion m3. Main rivers in the prefecture are listed in Table IV-1.

50

Table IV-1: Main Rivers in Tacheng Prefecture

River Catchment area (km2) Length in the prefecture (km)

Elevation of average river level (m)

Emin River 17,137 220 2,000

Baiyang River 15,119 180 2,600

Hebuerke River 4,172 108 3,816

Manasi River 5,156 190 5,500

Kuitun River 1,945 71 4,909

Sikeshu River 921 61 4,500

Source: Domestic EISs (based on the water resources assessment conducted by the Tacheng prefecture WRB in 2010)

123 Land use and vegetation. About 68 million ha or 41.2% of XUAR's total area are considered suitable for agricultural development, forestry and animal husbandry. Of this there are some 48 million ha of natural grassland for grazing, 9 million ha of degraded grassland where reclamation is possible, over 4 million ha under cultivation and 666,700 ha of man-made pastures. XUAR is one of PRC‘s five major grazing areas. In addition there are some 4.8 million ha of land available for forestry including 1.5 million ha in production with reserves of some 250 million cubic meters (m3) of timber.

124 Ecology and biodiversity. XUAR covers nearly one sixth of the territory of the PRC, with various landscape patterns, environmental conditions and three key regions of biodiversity of the PRC. The ecosystem here has a relatively simple structure and fragile ecological stability. The coverage of sparse vegetation is only 2.1% which is far lower than the average coverage all over the country (of 14%). Although the species numbers of XUAR are few, the diversity of taxa is high. The flora abounds in genera with one or few species and one-genus families. Also, the fauna includes a number of endangered and endemic species, of which 108 species of vertebrates are listed as nationally protected species.

125 XUAR is an ethnic minority concentrated living area. About 60% of the total population is ethnic minorities including Uygur, Kazakh, Mongolia, Hui, etc. Another special character of the area is that there are considerable residents from the production corps, the semi military units with their own jurisdictions scattered in the area. Historically, they were military units with the duties of both border protection and farming production. Through over 50 year development, these military units have transformed into more civilian like local governments and municipalities. They have established their own cities and towns and have their own municipal services and management system. Some of the jurisdictions of the production corps have converted into regular municipalities. At present, the estimated population from the production corps is about 257,000, or 12% of the total population.

126 Poverty incidence. XUAR is among the poorest of the Western Regions/provinces in the PRC. On a number of key economic indicators, XUAR ranks low in comparison to other regions in the PRC. In 2012, it was 20th out of 31 regions/provinces in terms of per capita annual disposable income of households.

127 XUAR’s 12th Five-Year Plan (FYP). The XUAR Government‘s focus during the 12th Five-Year Plan period will be the implementation of infrastructure, education and environmental protection projects needed for economic and social development. This will continue initiatives of the 11th Five-Year Plan which involved infrastructure development to improve water conservation,

51

transportation and communication.

128 Nature reserves/park in Tacheng Prefecture. There are one national level nature reserve and one national wetland park, and one XUAR level natural reserve in Tacheng Prefecture, which are all far from the proposed project areas (Table IV-2). The EIS reports prepared domestically conclude that there will be no any negative impacts to the reserves/parks from the proposed project components.

Table IV-2: Nature Reserves and Parks in Tacheng Prefecture

No. Name of

Reserve/park Distance and direction to Project Site Description

1

Nature Reserve of Baerbuluke Mountain (Provincial level)

97 km Southwest of Tacheng City project site, and 84 km west of, 28 km west of and 40 km southwest of ‘E’min’s, Yumin’s and Tuoli’s, respectively.

It is located in the northwest of Yumin County with the total area of 1,150 km

2.

The protected objects are the wild Badan almond trees, and other wild fauna and flora.

2 Wuxian River National Wetland Park

22 km North of Tacheng City project area, and 71 km northwest of, 17 km northwest of and 112 km northwest of ‘E’min’s, Yumin’s and Tuoli’s, respectively.

The park includes 5 rivers with the catchment area of 425.74 ha and the river basin area of 1,652.32 ha.

3 National Nature Reserve of Ganjia Lake Suosuo Forest

212 km Southwest of Tacheng, and 57 km southwest of, 31 km southwest of and 120 km southwest of ‘Emin’s, Yumin’s and Tuoli’s, respectively.

The total area of the nature reserve is 547 km

2. The main objects of protection are

the Suosuo and White Suosuo, the national Grade III protection flora.

Source: the EIA Institute

B. Description of the Environment in Tacheng City

(a) Overview

129 Location. Tacheng City is the capital of Tacheng Prefecture. The city is located in the northwest Xinjiang at the border with Kazakhstan. The city area is 4,357 km2 with the dimensions in south-north of about 90 km and in east-west of 58 km. The distance to Urumqi is about 630 km. The border trade port of Baktu is only about 12 km in the west.

130 There are 2 cities, 2 towns, 4 townships, 3 agricultural farms, 3 production corps regiments, and 1 agricultural community. By 2012, the urban population was 169,400, in which 62,600 were ethnic minorities, accounting for about 37% of the total population. The total GDP was CNY 5.95 billion, ranking 38th, and the GDP per capita was CNY 35,836, ranking 30th among all 99 cities/counties in XUAR. The GDP growth rate was 12.5%. The average disposable income for the urban residents was CNY 16,464 (entire prefecture) which is about 8% less than the average of XUAR of CNY 17,921. The city is a less developed city in comparison to the other cities in central Xinjiang. The total amount of the production is relatively small and the average person income is also below the regional average.

131 Climate. The city is surrounded by mountains on three sides with Harbahatai (Tarbagatai) and Bakyu mountains in west, north and east. The south side of the city is the open area formed by river deposits and with swaps and grassland. The topography of the area is sloping down from north to south with the maximum elevation of 2,835 m on top of the mountain in the north and the lowest elevation of 403 m in the south. Tacheng City has temperate continental arid climate with long, cold winters and short, hot summers. The average annual precipitation is 263.5 mm. The annual average temperature is 5-7°C. The characteristic values of local meteorological parameters are shown in Table IV-3.

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Table IV-3: Main Meteorological Parameters of Tacheng City

Parameter Unit Value

Annual average temperature °C 5-7

Extreme high temperature °C 41

Extreme low temperature °C -40

Annual average precipitation mm/a 263.5

Extreme precipitation in one day (1966/06/08) mm/d 56.9

Average wind speed m/s 1.8-3.1

Average maximum wind speed m/s 17

Maximum instantaneous wind speed m/s 40

Average evaporation amount mm/a 1,026

Maximum frozen earth depth mm 1.460

Dominant wind direction in the entire year N

Average annual sunlight duration hour/a 2,950

Snow cover days day 130

Source: EIS Reports

132 Water resources. XUAR has an annual runoff of some 88 billion m3 of surface water together with 25 billion m3 of exploitable groundwater, and glaciers covering 24,000 km2 which currently store over 2,580 billion m3 of water. Tacheng City is located in the Tacheng Basin, which is surrounded by hundreds of snow-mountains. Snow melt runoff is the main water resource of the basin. In comparison with other cities/areas in XUAR, water resources in Tacheng City are relatively abundant. In 2012, a comprehensive water resource balance analysis (WRBA) for Tacheng City was completed by the Water Resource Conservation Research Institute of Yellow River Commission. The WRBA report is one of the appendixes of the Tacheng Municipality Development Master Plan (2012-2030).

133 The total annual exploitable water resources in the municipality amount to 1.175 billion m3/a including surface water runoff of 742.89 million m3/a (11 main rivers), and the allowable groundwater exploitation of 432.23 million m3/a (Table III-4). According to the WRBA report, the predicted water demand in 2015, 2020 and 2030 are 534.63 million m3/a, 484.69 million m3/a and 471.99 million m3/a, respectively, accounting for 45.50%, 41.25% and 40.17% of the total available water resource (Table IV-4). The WRBA concluded that available water resources, both surface water and groundwater, are sufficient to satisfy the city’s demand in the short, interim and long term (as defined in the urban development master plan) without affecting other water users in surrounding areas. The WRBP also defined a municipality-wide water conservation plan, which is summarized in Table IV-6. More than 90% of available water resources are allocated to agricultural and grassland irrigation.

Table IV-4: Available Water Resources in Tacheng Municipality

No. River Length (km) Catchment area (km

2)

Total annual runoff (million m

3/a)

Surface water

1 Kalangguer River 29.3 349.0 119.9

53

2 Abudula River 33.3 271.2 101.2

3 Emin River 185.3 16,559.0 317

4 Akeqiaoke River 52.6 512.6 31.48

5 Kalaqitate River 34.4 266.7 40.32

6 Qietegemusi River 19.8 65.7 2.32

7 Wulasitai 36.8 189.4 45.46

8 Pierkasikan 19.7 54.7 2.42

9 Kuerbaigou River 11.3 28.1 4.4

10 Kujibaisu River 14.7 42.9 9.01

11 Kubotu River 22.9 16.5 69.38

Total of the surface water 460.1 18,355.8 742.89

Total allowable annual groundwater exploitation - - 432.23

Total available water resource - - 1,175.12 Source: Tacheng WRBA Report 2012

Table IV-5: Water Demand Projection and Allocation of Tacheng Municipality million m3/a

No. Sector Year

2015 % 2020 % 2030 %

1 Urban domestic and industrial 13.33 2.49% 20.66 4.26% 26.49 5.61%

2 Rural and small towns 2.09 0.39% 2.38 0.49% 2.34 0.49%

3 Rural industries 0.63 0.12% 0.63 0.13% 0.63 0.13%

4 Animal husbandry 1.73 0.32% 2.00 0.41% 2.56 0.54%

5 Agriculture irrigation 357.86 66.94% 291.06 60.05% 266.41 56.44%

6 Kulusitai Grassland irrigation and landscaping

159.00 29.74% 159.00 32.80% 164.00 34.75%

7 Contingency for urban & rural development 0.00 0.00% 8.96 1.85% 9.57 2.03%

Total water demand 534.63 100.00% 484.69 100.00% 471.99 100.00%

Total water available 1,175.12 - 1,175.12 - 1,175.12 -

% of total available water 45.50% - 41.25% - 40.17% - Source: Tacheng WRBA Report 2012

Table IV-6: Water Conservation Plan of Tacheng Municipality

Item Year

2015 2020 2030

Utilization rate of water conservation appliances 90%24

100 100

NRW rate of water supply 10%25

10% 10%

Industrial wastewater reuse rate 90% 90 90 Unit water consumption (m3/10,000 RMB GDP) 590

26 Reduce 30% Reduce 30%

Source: Tacheng WRBA Report 2012

134 River hydrology, flood discharge. Kalangguer River is the main river in Tacheng City which will be directly affected by the project. It is an inland river with the length of 29.3 km and the drainage area of 349 km2 in Tacheng municipality, with an annual runoff averaging 119.9 million m3. Records for the period xxx to xxx indicate that annual runoff varies between xxx and xxx million m3, without statistically significant trend (Figure IV-xxx). According to the city master plan, the area along the river is designated as the city’s tourism development and urban afforested area. A linear city park will be developed along the river section within the urban area. According to official records, several major floods occurred along Kalangguer River in recent history. Major floods occurred in 1983, 1990, 1993, 1998, 2003, and 2003, with peak flood discharge rates reaching

24

Baseline: 20% (2012) 25

Baseline: 40% (2012) 26

Based on 2010 data (843.9 m3 water Consumption per 10,000RMB GDP), with 30% reduction.

54

127m3/s (2003), causing significant damages to farmlands along Kalangguer River and nearby properties (Table IV-xxx). According to the data recorded from 1971 to 2005, direct economic losses accumulated to more than 15 million RMB. Runoff monitoring as well as flood history has been accounted for in the definition of design flood (Table IV-xxx).

Figure IV-xxx: Annual average runoff of Kalangguer River for period 1983-2011 (indicated in 100 million m3), measured at Kalangguer Hydrological Station, Kezibieke Village, Asir County)

Table IV-7: Kalangguer River flood history in Tacheng

Year Affected area Damage Direct economic loss (million RMB)

1983 Asir Flooded roads, main canal washes away. 1.80

Asir and Ergong Damage to houses and roads. 1.50

1990 Asir Cultivated land flooded, destroying harvest; roads damaged. 1.00

1993 Air and Ergong Cultivated land flooded, destroying harvest; damage embankment works.

2.80

Asir and Ergong Damage to houses and roads. Bridge washed away. 4.00

1998 Ergong Cultivated land flooded; roads damaged. 1.20

Asir and Ergong Damage to houses and roads; cultivated land flooded. 2.50

2005 Ergong Damage to houses and roads; cultivated land flooded. 2.00

Table IV-8: Design flood, peak discharge for different flood probabilities

55

1-in-100 years 1-in-50 years 1-in-30 years 1-in-20 years 1-in-10 years

253 m3/s 201 m3/s 180 m3/s 149 m3/s 109 m3/s

135 Ecological resources. Tacheng City has 1.12 million mu forest land (18.68% of the city’s total area), in which 0.9 million mu is natural forest, others consist of artificial forestry. The grassland area is 318,000 ha. There are more than 2,000 flora and 80 wild fauna species within the municipality. The proposed transport infrastructure and municipal services will be located within the urban area of Tacheng City, where no rare flora and fauna are reported. Current vegetation consists of planted pines, poplars and willows, and fauna includes common birds, rodents and insects. Results of the ecological baseline survey conducted by the EIA Institute, is summarized in Table IV-7.

Table IV-9: Flora in the Project Area in Tacheng City (Transport component)

No. Flora

1 Populus bolleana Lauche

2 Ulmus pumila

3 Artemisia

4 Dracocephalum rupestre Hance

5 Siberia Cocklebur

6 Atriplex verrucifera Bieb.

7 Swainsonia salsula

8 Achnatherum splendens(Trin.)Nevski

9 Cirisum japonicum DC

10 Setaria viridis (L.) Beauv.

Source: domestic EIS.

Figure IV-1: Flora in the Project Area in Tacheng City

136 Ecological resources within the Kalangguer River Area. The EIA institute conducted a site survey along Kalangguer River, and visited the technical staff of the Tacheng municipal water resources bureau (TWRB) and forestry bureau (TFB) in July 2014. The scope of the survey included the riverbed and 100 m riverfronts on both sides.

137 The river section affected by the project is located within Gobi-desert area, with very sparse vegetation coverage and wildlife population. The average vegetation coverage rate in the area in July 2014 was about 5%, other 95% of the land is Gobi-desert. A total of eleven (11) species of flora were recorded, including seven (7) growing within the riverbed and four (4) along river fronts. Three (3) species of fishes, and two (2) kinds of birds were observed. Other animals are common rodents, amphibians and reptiles (Table V-8 and Figure V-2). All

56

the fauna and flora are native species. No protected species listed in the PRC and XUAR’s list for endangered species were recorded. This was confirmed by the TWRB and TFB.

Table IV-10: Existing Ecological Resources within the Kalangguer River Area

Area Species

Existing vegetation in riverbed Reeds (Phragmites communis)

Ditch millet (P. scrobiculatum L)

Junco (Juncus effusus L)

Bluegrass (Poa annua L)

Polygonum hydropipe

Chinese tamarisk (Tamarix chinensis)

Artemisia

Existing riparian vegetation (100 m scope from the riverside)

Populus bolleana (Populus bolleana Lauche)

Tamarix (Salix matsudana Koidz)

Wild olive (Zizyphus jujube)

Siberian elm (Ulmus pumila)

Birds Sparrow

Thrush

Fishes Triplophysa stolickai (15 cm, 10 g each)

Gymnodiptychus (10-15 cm long and 30-50 g each)

Northern loach (15 cm, 10 g each)

Source: Domestic EIS

Northern loach Gymnodiptychus

Triplophysa stolickai Tamarix (Salix matsudana Koidz)

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Wild olive (Zizyphus jujube) Siberian elm (Ulmus pumila)

Figure IV-2: Ecological resources observed in the Kalangguer River Area (Source: PPTA Consultant)

138 Socio-economic resources. The total population of Tacheng City was 170,441 in 2012, with 25 ethnic minority groups. The major minority ethnic groups are Kazak, Uyghur, Hui and Daur, which accounted for 36% of the total population in 2012. The GDP of Tacheng City reached CNY 5.12 billion in 2012. The ratios of the first, second, and tertiary sectors were 18%, 32% and 50%, respectively. This indicates that the tertiary sector is main contributor to the local economy.

(b) Environmental Baseline of the Project Site in Tacheng City

139 Environmental baseline monitoring for Tacheng City was conducted by Tacheng Prefecture EMS in September 2013 for the infrastructure component, and in March and May 2014 for the river rehabilitation component, respectively. The monitoring results are summarized below. The monitoring locations are shown in Figure IV-3.

Figure IV-3: Monitoring Locations for Tacheng Infrastructure Component

140 Groundwater quality. Groundwater quality in Tacheng No.3 water treatment plant was

Proposed Project

Site

Legend

Noise monitoring location

Air monitoring location

Groundwater monitoring location

Tacheng Existing

Urban Area

West suburb

#6

#1 #2

#5

#4 #3

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monitored by the EMS on 19 September 2013. The monitoring locations are shown in Figure IV-3 above. The national Grade III Groundwater Quality Standard of GB14848-93 applies to the project site according to the local environmental functional zoning. Table IV-9 shows that the all monitoring results met the Grade III of the Groundwater Quality Standard, except the NO2-N (Nitrite nitrogen) exceeded the standard, most likely as a result of agricultural irrigation.

Table IV-11: Groundwater Quality – Tacheng City (mg/L, except for pH)

Parameter Value Grade III Standard of

GB14848-93

pH 8.1 6.5~8.5

Total hardness 235 450

CODMn 0.6 3.0

NH3-N 0.025 0.2

Sulfate 73.9 250

Cr+6 0.004 0.05

Cyanide 0.004 0.05

Nitrate nitrogen 2.37 20

Nitrite nitrogen 0.05 0.02

Chloride 11.7 250

Volatile phenol 0.002 0.002

TDS 352 1000

Fluoride 0.32 1.0

Cd 0.0001 0.01

Cu 0.05 1.0

Hg 0.00001 0.001

Source: Domestic EIS report.

141 Surface water quality of Kalangguer River. The assigned environmental function of the proposed Kalangguer River is class II of “Environmental Quality Standards for Surface Water of GB3838-2002” based on XUAR Surface Water Functional Map. The Tacheng Prefecture EMS conducted water quality monitoring in proposed section of Kalangguer River on 11 March 2014 (#1), and provided the data monitored on 13 May 2013 on the downstream section (#2). Meanwhile Tacheng City Water Resource Bureau provided the data monitored on 26 May 2014 at both upstream (#3) and downstream (#2) of the proposed section of Kalangguer River (Figure IV-4). The monitoring results are summarized in Table IV-10 and Table IV-11 below.

Table IV-12: Water Quality of Kalangguer River – monitored by Tacheng Prefecture EMS (Unit: mg/L, except pH and fecal coliform)

Parameter Monitoring Point #1

(11 March 2014)

Monitoring point #2

(13 May 2013)

Grade II Standard of

GB3838-2002

PH 8.18 8.00 6-9

NH3-N 0.29 0.22 ≤0.5

NO3-N - - 10

CODmn 2.07 3.40 ≤4

DO 8.10 7.60 ≥6

SS 21 11 /

CODcr 13.3 13.0 ≤15

phenols 0.0003 0.0003 ≤0.002

fluoride 0.32 0.28 ≤1.0

anionic surfactant 0.05 0.05 ≤0.2

sulfide 0.005 0.005 ≤0.1

fecal coliform 110个／L 110个／L ≤2000

59

BOD5 2.1 1.8 ≤3

TP 0.05 0.04 ≤0.1

TN 0.23 0.21 ≤0.5

petroleum 0.01 0.01 ≤0.05

As 0.0015 0.0015 ≤0.05

Cd 0.0001 0.0001 ≤0.005

Se 0.0006 0.0006 ≤0.01

Cr6+ 0.004 0.004 ≤0.05

Fe 0.03 0.03 0.3

Hg 0.00001 0.00001 ≤0.00005

Pb 0.001 0.001 ≤0.01

Cu 0.05 0.05 ≤1.0

Zn 0.02 0.02 ≤1.0 Source: the domestic EIS

Table IV-13: Water Quality of Kalangguer River – monitored by Tacheng Water Resource Bureau (Unit: mg/L, except pH and fecal coliform)

Parameter Monitoring Point #3 (upstream

on 26 May 2014)

Monitoring point #2 (downstream

on 24 May 2014)

Grade II Standard of

GB3838-2002

pH 8.1 7.9 6-9

DO 8.5 9.1 6

CODmn 2.5 0.8 4

CODcr 5.0 5.0 15

BOD5 0.6 0.4 3

NO3-N 0.93 2.84 10

NO2-N 0.008 0.004 /

TP 0.02 0.01 0.1

TN 0.1 0.09 ≤0.5

SS 14.4 0.2 /

fecal coliform 22 33 2000 Source: the domestic EIS

142 According to the above data, all monitored parameters met the Grade II of the national surface water quality standards of GB3838-2002.

143 Quality of Kalangguer River Sediment. Ten samples of river sediment along the project section of Kalangguer River were taken and monitored by Urumqi Qijingcheng Monitoring Technical Company on 19 May 2014. The monitoring results (Table IV-12) indicate that the sediment quality in the river complies with the Control Standards for Pollutants in Sludge and Sediment for Agricultural Use (GB4284-84) - for alkaline soil. The quality of sediments also met the Grade I of the PRC Soil Quality Standard (GB15618-95).

Table IV-14: River Sediment Quality in Kalangguer River (Unit: mg/kg)

Parameter Average Standard Value GB4284-84 Standard Value GB15618-95 (Grade I)

pH 8.61 6.5 6.5

Cd 0.07 20 0.20

Hg 0.021 15 0.15

As 5.31 75 15

Cu 26.9 500 35

Pb 24.8 1000 35

60

Cr 38.8 1000 90

Zn 74.3 1000 100

Ni 21.1 200 40

Source: EIS Report

Figure IV-4: Monitoring Location of Water and Sediment Qualities of Tacheng Kalangguer River

144 Ambient Air Quality. Daily average ambient air quality was monitored by the EMS for seven consecutive days in September 2013 for the infrastructure component and in March 2014 for the river rehabilitation component, respectively. Three samples were taken within the project area (Urban area and west suburb for the transport infrastructure component and Chahantouhai Village for the river component). The monitoring locations are shown in Figure IV-3 above, and the baseline data are shown in Table IV-13. The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996).

Table IV-15: Air Quality in Project Locations

Monitoring Parameter

Monitoring Location Concentration

Range Class II Standard

of GB3095-1996 Assessment

Result

PM10 (mg/m3)

For Infra.

Urban area 0.05-0.075

0.15

Meet

West suburb 0.039-0.091 Meet

For River

Chahantuohai Village 0.042-0.083 Meet

SO2 (mg/m3)

For Infra.


0.3

Meet


For Chahantuohai Village 0.003-0.01 Meet

Point of Midstream

River

Monitoring Point

Point of U t

Point of Downstream

Point of Sediment

61

River

NO2 (mg/m3)

For Infra.


0.15

Meet


For River

Chahantuohai Village 0.004-0.01 Meet

Source: Domestic EIS Report.

145 According to Table IV-13, the quality of the monitored ambient air in the project areas all met the Grade II of National Ambient Air Quality Standard (GB 3095-1996).

146 Acoustic environment. Noise monitoring within the project area was conducted during 19 -20 September 2013 for the infrastructure component at environmental sensitive receptors identified in the domestic EIS, and 11-12 March 2014 for the river rehabilitation component, respectively. 10 points were selected for the monitoring, which as well as the monitoring results are shown in Table IV-14 below.

Table IV-16: Monitoring Data of Baseline Noise (dB(A))

No. Noise Sensitive

Receptors Minimum Distance

to Rd Monitoring

Result Standard of

GB3096-2008 Assessment

Result

For Infra.

Liuhe Residential Community

20 m to Second Ring Rd

Day 50.6 70 (Grade 4a) Meet

Night 45.3 55 (Grade 4a) Meet

Huaxi Residential Community

40 m to Tianyuanna Rd.

Day 59.6 60 (Grade II) Meet

Night 47.9 50 (Grade II) Meet

Beijixincheng Residential Community

20 m to Xixingnan Rd.



Tacheng Hospital 70 m to Third Ring Rd.



Resettlement Residential Community

30 m to Second Ring Rd.



Tacheng Socialism College

80m to Hemunan Rd



For River

Kalangguer Riverside 1# Along the proposed section of

Kalangguer River



Kalangguer Riverside 2# Day 41.1 60 (Grade II) Meet






Source: Domestic EIS Report

147 The monitoring results (Table IV-8) show that all baseline noise monitored data met the Grade II and 4a Standard of GB3096-2008.

C. Description of the Environment in Emin County

(a) Overview

62

148 Emin County is situated in the northwest of Tacheng Prefecture with the longitude from 83°24’ to 85°10’ E and the latitude from 46°09’ to 47°03. The county town is located at 480 km northwest of Urumqi, the capital of XUAR. It is bordered with the Republic of Kazakhstan in the northwest, Hoboksar Mongol Autonomous County in the east, Tuoli County in the south and Tacheng City in the west. The territory of the city is about 87 km in north-south direction and 123 km in the east-west direction with a total area of 9,532 km2. The total population of Emin County is 144,700 in 2012

149 The topography of Emin County is high in the northeast and low in the southwest, and the central plain with mountains in the north (Taerbahatai Mountains) and southeast (Wuerkaxiaer Mountain). The mountain area accounts for 54.41% of the total territory while the plain area is 45.59% of the territory. The major geological settings in the county include the typical characteristics of upland meadow and intermountain basin in the west Junggar Basin. The current annual erosion intensity is 500 t/km2.a (mainly wind erosion), which is classified as moderate erosion according to the PRC’s soil erosion classification. The total disturbed area by this project component is 29.1 ha, and the anticipated increased soil erosion amount by the construction activities is 961.6 tons if no proper measures are taken according to the EIS. According to the PRC earthquake intensity zoning map (GB18306-2001), Emin’s seismic fortification intensity is Grade VI, and the earthquake acceleration is 0.05g.

150 Climate. Emin County has temperate continental climate with long, cold winters and short, mild summers. Average annual precipitation is 270.8 mm, and the average annual evaporation is 1780 mmm. The county has long sunlight time and strong solar radiation. The average annual sunlight duration is 2,833 h/a. The average wind speed is 3.1-3.6 m/s. The maximum wind speed is 20m/s. Dominant wind direction in the entire year is different since the complicated topography of Emin County.

151 Water resources. Emin county’s water resources are relatively abundant, with a total average water resources of 1.256 billion m3/a including 1.006 billion m3/a of surface water and 250 million m3/a of exploitable groundwater. The surface water source of Emin County includes Emin River and its five branches, two medium-sized reservoirs of Emin and Akesu, as well as 34 streams (Table IV-17). The groundwater depth is 60-70m. According to the data provided by Emin County WRB, water demand projections for 2015, 2020 and 2030 are 355.12 million m3/a, 324.60 million m3/a and 297.73 million m3/a, respectively, accounting for 28.27%, 25.84% and 23.70% of the total available water resource (Table IV-17). Agriculture irrigation accounts for more than 90% of the total water demand. The WRB confirmed that available water resources are sufficient to satisfy the demand in the short, interim and long terms, and also have enough remaining water resources to satisfy for water usage in downstream and surrounding areas.

Table IV-17: Water Resources in Emin County

No. River Length of rivers (km) Average annual runoff

million m3

1 Main stream of Emin River in Emin County 100 220.0

2 Kalayemule River 58 190.0

3 Saeryemule River 50 200.0

4 Marelesu River 40 117.00

5 Kulumusu River 40 22.00

6 Wushete River 58 58.00

7 Akesu River 60 76.00

8 Total other 34 small streams - 83.00

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9 Emin Reservoir - 20.0

10 Akesu Reservoir - 20.0

Total surface water - 1,006

Total allowable annual groundwater exploitation - 250

Total available water resource - 1,256.00

Source: TEIA and Emin PIU

Table IV-18: Water Demand Projections for Emin County million m3/a

No. Sector Year

2015 % 2020 % 2030 %

1 Urban domestic and industrial 8.68 2.44% 16.14 4.97% 25.99 8.73%

2 Rural and small towns 7.82 2.20% 7.93 2.44% 8.42 2.83%

3 Agriculture irrigation 338.62 95.35% 300.53 92.58% 263.32 88.44%

Total water demand 355.12 100.00% 324.6 100.00% 297.73 100.00%

Total water available 1,256.00 - 1,256.00 - 1,256.00 -

% of total available water

28.27%

25.84%

23.70%

Source: Emin WRB

152 Ecological resources. The proposed roads will be located within the urban area of Emin county town, there are no rare flora and fauna within the project area. The current vegetation includes planted pines, poplars and willows, and the fauna are common birds, rodents, small reptiles and insects.

153 Social and economic conditions. The total population of Emin County is 144,700 in 2012. The GDP reached CNY 4.278 billion in 2011. The ratios of the first, second, and tertiary sectors were 27%, 43.7% and 29.3%, respectively. The major mineral resources of the county include coal, limestone, gypsum and kaolin.

(b) Environmental Baseline of the Project Site in Emin County

154 Environmental baseline monitoring for the Emin component was conducted by Tacheng Prefecture EMS during 19-25 September 2013. The monitoring locations are shown in Figure IV-5, and the monitoring results are summarized below.

64

Figure IV-5: Environmental Baseline Monitoring Location in Emin County

155 Groundwater quality. Groundwater quality at the existing water supply plant of Emin

County was monitored by the EMS. The monitoring locations are shown in Figure IV-5. The

monitoring results are shown in Table IV-19. The national Grade III Groundwater Quality Standard

of GB14848-93 applies to the project site according to the local environmental functional zoning. All

monitored parameters met the Grade III Standard of GB14848-93.

Table IV-19: Groundwater Quality (mg/L, except for pH)


GB14848-93

pH 8.4 6.5~8.5


CODMn 1.0 3.0

NH3-N 0.025 0.2

Sulfate 241 250

Cr+6 0.004 0.05

Cyanide 0.004 0.05



Chloride 22.9 250


TDS 645 1000

Fluoride 0.33 1.0

Cd 0.0001 0.01

Cu 0.05 1.0

Hg 0.00001 0.001


65

156 Surface Water Quality. Surface water quality in the Emin River was monitored. The monitoring locations are shown in Figure IV-5. The monitoring results are shown in Table IV-20. The national Grade III Surface Water Quality Standard of GB3838-2002 applies to the project site according to the local environmental functional zoning. Monitoring results all met the Grade III of the National Surface Water Quality Standard of GB3838-2002.

Table IV-20: Surface Water Quality (mg/L, except for pH)


GB14848-93

pH 8.11 6~9 CODMn 1.74 ≤6 NH3-N 0.37 ≤1.0 Petroleum 0.018 ≤0.05 SS 56 ≤100* CODcr 12.6 ≤20

BOD5 2.11 ≤4

TP 0.042 ≤0.2

Volatile phenol <0.002 ≤0.005

Cyanide <0.004 ≤0.2

Sulfate 0.005 ≤0.2

Fluoride 0.33 ≤1.0

As 0.0005 ≤0.05

Hg 0.00001 ≤0.0001

Pb 0.005 ≤0.05 Source: Domestic EIS report.

157 Ambient Air Quality. Daily average ambient air quality was monitored by the EMS for seven consecutive days in September 2013. Two samples were taken within the project area (County government and west suburb). The monitoring locations are shown in Figure IV-5, and the baseline data are shown in Table IV-21. The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996). Monitored ambient air in the project area all met the Grade II of National Ambient Air Quality Standard (GB 3095-1996).

Table IV-21: Daily Average Concentrations of the Monitored Pollutants


Monitoring Location

Concentration Range Class II Standard of

GB3095-1996 Assessment Result

PM10 (mg/m3)

County government 0.057-0.105 0.15

Meet


SO2 (mg/m3)


Meet


NO2 (mg/m3)


Meet



158 Acoustic environment. Noise monitoring within the project area was conducted on 19 September 2013 at or nearby each of the construction sites. Six points were selected for the monitoring, identified as noise sensitive receptors. The monitoring points are shown in Figure IV-5 and Table IV-22, and the monitoring results are listed in Table IV-23 below. Noise levels at all six monitoring points meet the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade II, but partly exceeded the recommended World Bank Group’s EHS guideline values of 55dB and 45dB for day and nighttime, respectively, by a slight margin.

66

Table IV-22: Baseline Noise Monitoring Locations for the Project Sampling Code Monitoring Location Distance and direction to Project Site

#1 East campus of No.1 middle school in Emin County 20m #2 Longfeng kindergarten 20m #3 Residential area in eastern county 75m #4 No.5 primary school in Emin County 50m #5 No.3 primary school in Emin County 50m #6 Residential area in northern county 70m

Source: domestic EIS

Table IV-23: Baseline Noise Monitoring Data (dB(A))

No. Monitoring Result Standard of GB3096-2008 World Bank EHS

Guideline Assessment Result

#1 Day 53.5 60 (Grade II) 55 Meet

Night 49.8 50 (Grade II) 45 Meet












D. Description of the Environment in Tuoli County

(a) Overview

159 Tuoli County is situated in the southern margin of Tacheng Basin, the west of Junggar Basin with the longitude from 82°28’ to 85°20’ E and the latitude from 44°59’ to 46°25’ N. The project site will be located in the county town, which is 512 km northwest of Urumqi City. It is bordered with the Emin County and Hoboksar Mongol Autonomous County in the north, Karamay City in the east, Yumin County and the Republic of Kazakhstan in the west, and Jinghe County and Wusu City in the south. The territory of the county is 159.3 km in north-south direction and 16 km in the east-west direction with a total area of 19,977.34 km2.

160 Geology, seismicity. The landform of Tuoli County is mainly the mountain, the mountain area accounts for 77.68% of the total territory. The main mountains are Jiayier Mountain, Mayier Mountain and Baerluke Mountain. The average elevation of the county is 1500 m ASL, with the lowest elevation of 200 m ASL and the highest of 2,658 m ASL. The current annual erosion intensity is 1,500 t/km2, which is classified as severe erosion according to the PRC’s soil erosion classification. The total disturbed area by this project component is 29.1 ha, the anticipated increased soil erosion amount by the construction activities is 1,636.8 tons if no proper measures are taken according to the EIS (see Table V-4). According to the PRC earthquake intensity zoning map (GB18306-2001), Tuoli’s seismic fortification intensity is Grade VI, and the earthquake acceleration is 0.05g.

161 Climate. Tuoli County has temperate continental climate with long, cold winters and short, temperate summers. Annually average precipitation is 243.6 mm and the annual evaporation

67

amount is 1984.5 mm. The “Old wind gap” is located in Tuoli County, which is the famous great windy spot in XUAR. The maximum wind speed can reach 40 m/s, and the average wind speed is 8.3-9.1 m/s. The characteristic values of local meteorological parameters are shown in Table IV-25.

Table IV-24: Main Meteorological Parameters of Tuoli County

Weather elements Unit Value

Annual average temperature (Mountain) °C 2.3

Average temperature in January (Mountain) °C -19.8

Average temperature in July (Mountain) °C 17.6

Annually average precipitation (Mountain) mm/a 243.6

Average evaporation amount (Mountain) mm/a 1984.5

Frost-free period (Mountain) day 113

Annual average temperature (Plain) °C 4.3

Average temperature in January (Plain) °C -12.5

Average temperature in July (Plain) °C 19.9

Annually average precipitation (Plain) mm/a 253.6

Average evaporation amount (Plain) mm/a 1735.2

Frost-free period (Plain) day 137


162 Hydrology and water resources. Main rivers in Tuoli County include Kupu, Langutaile, Duolate, Wuxuete, Keketale and Qialegai rivers, and other 43 small streams. The annual average surface water runoff in the county is 193.6 million m3. There are 8 small reservoirs in the County with the total capacity of 27.35 million m3. The groundwater table within the project area varies between 22.45-43.94 m.

163 Ecological resources. Currently, the proposed site for the Tuoli component is steppe Gobi desert with a vegetation coverage rate of less than 10%. The major species include artemisia, alkaloid anabasine, stipa capillata and Ceratoides latens, and the fauna are common small rodents and insects.

Figure IV-6: The Current Status of Project Site in Tuoli County (Source: domestic EIS)

164 Socio-economic conditions. The total population of Tuoli County was 100,235 in 2012. The GDP reached CNY 3.487 billion in 2012. The ratios of the first, second, and tertiary sectors were 8.92%, 73.16% and 17.93%, respectively.

68

(b) Environmental Baseline of the Project Site in Tuoli County

165 Environmental baseline monitoring for Tuoli County was conducted by Tacheng Prefecture EMS during 19-26 September 2013. The monitoring results are summarized below. The monitoring locations are shown in Figure IV-6.

Figure IV-7: Monitoring Locations of Tuoli County

166 Groundwater quality. Groundwater quality in the second water treatment plant in Tuoli County was monitored by the EMS on 22 September 2013. The monitoring results are shown in Table IV-26. The national Grade III Groundwater Quality Standard of GB14848-93 applies to the project site according to the local environmental functional zoning. All monitoring results met the Grade III of the National Groundwater Quality Standard, except the Nitrite nitrogen (NO2-N) exceeded the standard, most likely as a result of agricultural pollution (according to the domestic EIS).

Table IV-25: Groundwater Quality – Tuoli County (mg/L, except for pH)


GB14848-93

pH 8.3 6.5~8.5


CODMn 0.8 3.0

NH3-N 0.025 0.2

Sulfate 97.3 250

Cr+6 0.004 0.05

Cyanide 0.004 0.05


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GB14848-93


Chloride 28.9 250


TDS 413 1000

Fluoride 0.33 1.0

Cd 0.0001 0.01

Cu 0.05 1.0

Hg 0.00001 0.001


167 Ambient Air Quality. Daily average ambient air quality was monitored by the EMS for seven consecutive days in September 2013. Two samples were taken within the project area (urban area and north suburb). The monitoring locations are shown in Figure IV-6, and the baseline data are shown in Table IV-27. The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996). Ambient air in the project area all met the Grade II of National Ambient Air Quality Standard (GB 3095-1996).



Monitoring Location



PM10 (mg/m3)

Urban area 0.059-0.083 0.15

Meet

North suburb 0.043-0.077 Meet

SO2 (mg/m3)

Urban area 0.007-0.016 0.3

Meet


NO2 (mg/m3)

Urban area 0.009-0.015 0.15

Meet



168 Acoustic environment. Noise monitoring within the project area was conducted on 19 September 2013 at or nearby each of the construction sites. Three points were selected for the monitoring. The monitoring points are shown in Figure IV-6, and the monitoring results are listed in Table IV-28 below. Noise levels at all six monitoring points meet the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade II.


No.

Monitoring Result Standard of


#1 Start point of Waihuan Road



#2 Residential area of

herdsmen Day 56.3 60 (Grade II) Meet


#3 End point of Waihuan

Road Day 59.6 60 (Grade II) Meet



70

E. Description of the Environment in Yumin County

(a) Overview

169 Yumin County is situated in the southern margin of Tacheng-Emin Basin, the west of Junggar Basin with the longitude from 82°12’ to 83°30’ E and the latitude from 45°24’ to 46°3’ N. The project site will be located in the county town, which is 425 km northwest of Urumqi. It is bordered with the Tuoli County in the east, Emin County in the northeast, Tacheng City in the north, the Republic of Kazakhstan in the west and southwest with the borderline of 170 km. The territory of the county is about 120 km in north-south direction and 65 km in the east-west direction with a total area of 6,120 km2.

170 Geology, seismicity. The topography of Yumin County is composed of a plain in the north, alluvial fan in the middle and Baerluke Mountain in the south. The topography is that the southern is higher than northern. The elevation scope is 390-500 m ASL. The main soil type is chestnut soil, alpine meadow soil and humus soil. The current annual erosion intensity is 500 t/km2.a, which is classified as moderate erosion according to the PRC’s soil erosion classification. The total disturbed area by this project component is 24.6 ha, the anticipated increased soil erosion amount by the construction activities is 1,180.8 tons if no proper measures are taken according to the EIS. According to the PRC earthquake intensity zoning map (GB18306-2001), Yumin’s seismic fortification intensity is Grade VI, and the earthquake acceleration is 0.05g.

171 Climate. Yumin County has arid continental climate with long, cold winters and short, warm summers. The characteristic values of local meteorological parameters are shown in Table IV-23.

Table IV-28: Main Meteorological Parameters of Yumin County

Weather elements Unit Value

Annual average temperature °C 6.5

Extremely high temperature (in July) °C 41.8

Extremely low temperature (in January) °C -35.9

Annually average precipitation mm/a 269.7

Maximum wind speed m/s 17

Annual average windy days day 62

Average evaporation amount mm/a 1,052

Annual frozen-free period day 153

Dominant wind direction in the entire year W

Average annual sunlight duration hour/a 2872.3


172 Water resources. The total water resources of the Yumin County amount to 296.64 m3/a including 269.14 million m3/a surface water and 27.50 million m3/a of exploitable groundwater. (Table IV-30). According to the data provided by Yumin County WRB, water demand projections in 2015, 2020 and 2030 are 78.42 million m3/a, 72.02 million m3/a and 65.38 million m3/a, respectively, accounting for 26.44%, 24.28% and 22.04% of the total available water resources (Table IV-31). The WRB confirmed that the water resources, both the surface water and groundwater are sufficient to satisfy the demand in the short, interim and long term resulting from planned urban development.

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Table IV-29: Water Resources in Yumin County

No. River Average annual runoff million m3

1 Halabula River 49.6

2 Boyibuxie River 12.93

3 Aletengyebule River 9.25

4 Jianggesi River 20.9

5 Qiegeer River 19.46

6 Tasite River 157.0

Total surface water 269.14

Total allowable annual groundwater exploitation 27.5

Total available water resource 296.64

Source: Yumin WRB and the PIU

Table IV-30: Water Demand Projection for Yumin County million m3/a

No. Sector Year

2015 % 2020 % 2030 %

1 Urban domestic and industrial 3.2 4.08 3.1 4.30 4.2 6.42

2 Rural and small towns 4.96 7.06 3.78 5.25 4.71 7.20

3 Agriculture irrigation 70.26 89.59 65.14 90.4

5 56.47 86.37

Total water demand 78.42 100 72.02 100 65.38 100

Total water available (surface water + groundwater)

296.64 - 296.64 - 296.64 -

% of total available water 26.44% - 24.28% - 22.04% -

Source: Yumin WRB and the PIU

173 Ecological resources. The proposed roads will be located within the urban area of Yumin county town, there are no rare flora and fauna within the project area. The current vegetation consists of planted pines, poplars and willows, and the fauna are common birds, small rodents and insects.

174 Socio-economic conditions. The total population of Yumin County was 48,147 in 2012. The fiscal revenue reached CNY 21.84 million in 2012.

(b) Environmental Baseline of the Project Site in Yumin County

175 The environmental baseline monitoring for Yumin component was conducted by Tacheng Prefecture EMS during 19-26 September 2013. The monitoring locations are shown in Figure IV-8, and the monitoring results are summarized below.

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Figure IV-8: Environmental Baseline Monitoring Locations in Yumin County

176 Baseline groundwater quality. Groundwater quality in the No. 2 water supply plant in Yumin County was monitored by the EMS on 22 September 2013. The monitoring results are shown in Table IV-32. The national Grade III Surface Water Quality Standard of GB3838-2002 applies to the project site according to the local environmental functional zoning. All monitoring results met the Grade III of the National Surface Water Quality Standard, except the TN exceeded the standard, most likely as a result of nonpoint source (fertilizer use), according to the domestic EIS.

Table IV-31: Surface water Quality – Yumin County (mg/L, except for pH)


GB14848-93

pH 7.8 6~9 CODMn 0.9 ≤6 NH3-N 0.45 ≤1.0

Petroleum 0.01 ≤0.05

SS 24 ≤100* CODcr 11.2 ≤20 BOD5 2.2 ≤4 TP 0.03 ≤0.2 Volatile phenol <0.002 ≤0.005 Cyanide <0.004 ≤0.2 TN 2.94 ≤1.0

Sulfate 0.005 ≤0.2

Fluoride 0.34 ≤1.0

As 0.0005 ≤0.05

Hg 0.00001 ≤0.0001

Pb 0.001 ≤0.05


177 Ambient Air Quality. Daily average ambient air quality was monitored by the EMS for

73

seven consecutive days in September 2013. Two samples were taken within the project area (urban area and north suburb). The monitoring locations, shown in Figure IV-8, and the baseline data are shown in Table IV-33. The applicable standard is Grade II of National Ambient Air Quality Standard (GB3095-1996). Ambient air in the project area all met the Grade II of National Ambient Air Quality Standard (GB 3095-1996).



Monitoring Location



PM10 (mg/m3)

Urban area 0.061-0.091 0.15

Meet

South suburb 0.044-0.087 Meet

SO2 (mg/m3)

Urban area 0.006-0.012 0.3

Meet


NO2 (mg/m3)

Urban area 0.008-0.013 0.15

Meet



178 Acoustic environment. Noise monitoring within the project area was conducted on 22 September 2013 at or nearby each of the proposed roads. Ten points were selected for the monitoring, corresponding to identified noise sensitive receptors identified in the domestic EIS. The monitoring points are shown in Figure IV-8, and the monitoring results are listed in Table IV-34 below. Noise levels at all ten monitoring points meet the requirement of Environmental Quality Standard for Noise (GB3096-2008) – Grade II, but partly exceeded the recommended World Bank Group’s EHS guideline values of 55dB and 45dB for day and nighttime, respectively, by a slight margin.


No. Monitoring location Monitoring Result Standard of

GB3096-2008 Assessment

Result

#1 Yujinyuan Community Day 57.3 60 (Grade II) Meet


#2 Yujinyuan Community Day 56.7 60 (Grade II) Meet


#3 Honghua Community Day 59.1 60 (Grade II) Meet


#4 Yumin Kindergarten Day 57.7 60 (Grade II) Meet


#5 Jixiang Community Day 53.3 60 (Grade II) Meet


#6 Shanhua Community Day 56.1 60 (Grade II) Meet


#7 Jidihuanyuan Community Day 51.9 60 (Grade II) Meet


#8 Tuanjiehuayuan Community Day 52.3 60 (Grade II) Meet


#9 Shichang Community Day 54.1 60 (Grade II) Meet


74

#10 No.1 Primary School Day 54.3 60 (Grade II) Meet



75

V. ANTICIPATED IMPACTS AND MITIGATION MEASURES

179 Potential project impacts, both positive and negative, were assessed through site visits, technical analysis, as well as consultations with government agencies and local communities, and dialogues among the EA, IAs, TPPMO, PIUs, DI, EIA institute and PPTA consultants.

A. Positive Impacts and Environmental Benefits

180 Environment benefits. The project will have significant environment, health, and safety benefits to about 178,400 urban residents in the four project city/counties by improving urban infrastructures and municipal services, and supporting environmentally sustainable river rehabilitation and flood control, district heating and increasing urban sanitation facilities. Of the total direct beneficiary populations, approximately 49.7% are women, 11.84% live under the urban poverty line of less than CNY331 per capita per month, and 45.8% are ethnic minorities in the project areas. The project will facilitate environmentally sustainable urban infrastructure development by improving urban road linkages and related facilities by rehabilitating and upgrading urban roads and street alleys, constructing urban roads and bridges, enhancing coverage and quality of district heating services, improving water supply and sewer coverage, installing energy-efficient LED street lighting, and expanding public green areas. The project will improve public transport services and implement road safety and traffic management initiatives. Key environment benefits are highlighted here:

181 People-centered transport facilities. All new roads will be developed with safe and adequately wide footpaths as well as fully segregated non-motorized lanes where possible. Traffic safety will be promoted through adequate design of the roadway itself (including key interventions such as appropriate street lighting, safe roadway alignments, adequate shoulders, signage, roadway markings, and protective barriers in vulnerable areas). Project design has emphasized investments in public transport facilities, including the installation of 28 weather-protected public bus stations along project roads in Tacheng, Emin and Yumin. The use of LED street lights will result in energy savings over 2.43 million KWh per year with an estimated CO2eq emission reduction of 2,420 t/a27 as compared to conventional street lighting (Table V-1).

Table V-1: Energy Saving and GHG Emission Reduction by Using LED Street Lighting

City/county Numbers of street light

Electricity saving (kWh/a)

Standard coal saving (t/a)

CO2eq emission reduction (t/a)

Tacheng 1,677 1,285,421 514.2 1,281.8

E'min 296 226,884 90.8 226.2

Yumin 488 374,052 149.6 373.0

Tuoli 705 540,383 216.2 538.9

Total 3,166 2,426,739 970.7 2,419.9

Source: Domestic EISs and PPTA consultant

182 Flood control and river revitalization. In Tacheng City, the Project will construct and rehabilitate unstable river embankments along 15.2-km of the Kalangguer River, significantly improving the city’s ability for flood control and protection. Consequently, damages of floods to houses, facilities and goods, as well as farm lands and crops, will be prevented and/or mitigated. The most direct benefit of the Project will be that the flooding of an estimated 14-km2 area will be

27

A KWh electricity saving reduces 0.997 kg of CO2.

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avoided should a 1-in-50-year flood occur. The revitalization of the Kalangguer riverfront will include a 15m band of trees along both sides to improve visual appearance, and carbon sink to offset city vehicle emissions. The 36 ha of trees along the river are expected to sequester some 33 tons of CO2 per year (see Table V-26).

183 District heating. With project support, the Tacheng Municipal Government will commission new district heating distribution capacity to supply existing a new service areas. The planned combined heat and power plan (CHP) will use its waste heat to provide hot water to the district heating system. The proposed development will substantially improve energy efficiency and service quality, expand district heating coverage by 4.25 million m2, and ultimately lead to emission reductions resulting from the shift in heat source.

184 The CHP will replace 30 small, polluting, and inefficient coal-fired boilers and about 3,000 single-family heating stoves28. The reduction of single-family stoves as point sources for indoor air pollution will have a significant positive impact on the residents’ health and well-being, especially the women and poor. The local environment will improve as a result of the reduction of PM10, SO2, NOx and other harmful compounds that contribute to acid rain, decreased crop production, and water pollution. The subcomponent will have the following impacts in the area according to the draft EIA Report of the CHP: (i) replace low efficiency small coal-fired boilers, resulting in standard coal saving and CO2 emission reduction of 72,500 t/a and 180,740 t/a, respectively (Table V-2); (ii) reduce traffic hazards caused by coal and slag transport vehicles in Tacheng urban areas (i.e., a reduction of 144,000 track loads per year); and (iii) improve public health and the living environment in areas now affected by emissions, noise, and flue dust from the small boiler houses and family heating stoves.

Table V-2: Estimated Emission Reduction and Coal Saving from Tacheng District Heating

Item Using CHP29

Current scenario

30 in Tacheng urban

area Reduction

Standard coal 216,292 288,791 72,500

Raw coal31

345,925 461,877 115,952

CO2 Emission 539,215 719,957 180,741

Coal transport truck (No.)32

43,241 57,735 14,494

Source: calculated by the PPTA consultants jointly by the EIA Institute

185 Solid waste. The project will support upgrading the existing collection system to enhance collection efficiency and meet environmental compliance, building new collection stations to serve expanded urban area, and piloting sorting and recycling scheme in three communities in Tacheng. It’s estimated that about 103.2 t/d of solid waste will be collected and disposed in Tacheng City after implementation of the project.

186 Climate adaptation. The project conforms to the principles of the Bellagio Declaration on sustainable transportation and climate change, which recommends that adaptation strategies, at a minimum, contain the following aspects: (i) a long-term perspective (building climate resilient infrastructure); (ii) requirements for fixing and adapting what already exists (such as road

28

Source: the draft EIA Report of the CHP Plant; 29

The heating efficiency of CHP is 83% according to the FSR and draft EIA of the CHP; 30

64.4% of building area uses small scale district heating systems with heat-only boilers of average efficiency of 70%; 7% using

small boilers (60% efficiency), and 28.6% using family heating stoves (50% efficiency); 31

Calculated based on the coal to be used for the CHP, as defined in the CHP FSR (heat value: 18,32 MJ/kg); 32

Calculated as 8 tons coal per truck

77

rehabilitation and maintenance in Emin County), (iii) recognition of the need to respond to climate emergencies (such as an emergency preparedness approach for floods). The transport infrastructure components with improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme weather events that might result from future climate change. They will provide efficient and alternative routes for both emergency vehicles and escape.

187 Surface water pollution abatement. The infrastructure development components in Tacheng City and Emin County will construct 56.871 km sewer pipeline, with the service population of 170,200. The estimated amount of domestic wastewater to be collected is about 39,800 m3/d. This wastewater will be delivered to the existing municipal WWTPs, where it will be treated to Class-1B Standard prior to discharge. The sewer system will reduce contamination of receiving water bodies, and will result in cleaner and healthier living environment for the urban residents. The estimated pollution abatement is shown in Table V-3.

Table V-3: Summary of Pollutants Removal through the Sewer Pipelines

Item Tacheng City Emin County Total

Length of sewer pipe (km) 48.791 8.08 56.871 Service population 75,200 95,000 170,200

Wastewater collected (m3/d) 21,800 18,000 39800

CODcr (t/yr.) removal 5.232 4.32 9.552 BOD (t/yr.) removal 4.36 3.6 7.96 TN (t/yr.) removal 0.654 0.54 1.194 TP (t/yr.) removal 0.0654 0.054 0.1194

NH3-N (t/yr.) removal 0.6976 0.576 1.2736 Source: the EIA Institute and PPTA Consultants

188 Poverty and social benefits. The project will provide residents with better roads and transport services, access to safe and reliable water supply and heating services, and improved living environment. Public awareness programs and implementation of the transport safety and sanitation management will ensure the positive and long-term social benefits of the project. Construction activities will directly create 1,286 temporary jobs, and indirectly 1,920 temporary jobs. The operation and maintenance of the project outputs will directly create an estimated 237 permanent jobs. Many temporary jobs will be unskilled, and contractors are required to employ local workers when possible. The Tacheng Prefecture PMO has set up employment targets for women, poor population and ethnic minorities. Project city/county community offices and the Labor Bureau will assist the contractors in realizing these targets. Project implementing units (PIU) will ensure that all PRC labor laws and core labor standards are respected. This will be closely monitored under the project performance monitoring system. Details on specific measures to ensure the poverty and social benefits are in the gender action plan, social action plan in the PAM, and ethnic minority development plan. Improved infrastructure in the project city/counties will aid Tacheng Prefecture’s growing cross-border trade and tourism by providing an enabling condition to expedite development of the related service industries, which are the engine for growth and poverty alleviation.

189 Gender benefits. The project is categorized as effective gender mainstreaming. More effective infrastructure will result in reduced time burdens, and greater mobility, access, and public health. Women strongly support the project across all city/county, as it will improve their quality of life, mobility and access, public health, and create jobs and income opportunities. Gender has been mainstreamed into the project design (features such as road lighting, none-motorized transport, and pedestrian access are included); and a project gender action plan has been prepared that will (i) ensure women’s consultation and participation in traffic safety and sanitation management

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awareness, transport services, and other project activities; (ii) provide gender-sensitivity training to the city/county PMO and implementing agency staff; (iii) ensure that project decision-making bodies and participants in capacity building activities are gender-balanced; and (iv) include appropriate gender targets, indicators, and sex-disaggregated data. TPG will be responsible for implementing the gender action plan and reporting on progress and achievements of gender benefits under the project semi-annually.

B. Screening and Scoping of Potential Impacts

190 The potential impacts were screened during the EIA studies, through a number of methods such as rapid environment assessment (REA), site visits, technical analysis and consultations with key stakeholders ranging from the government agencies to members of the local communities and APs in the project areas. The purpose of the screening and scoping were to: (i) identify the relative significance of potential impacts from project activities during construction and operation; (ii) establish the scope of the assessment which assists in focusing on major, critical, and specific impacts; and (iii) enable flexibility in regard to consideration of new issues, such as those that reflect the requirements of both the PRC’s environmental laws, regulations and standards, and ADB’s SPS.

191 Major potential impacts and issues of concern identified at screening stage and included in the EIA study (EIA scoping) are listed in Table V-4. These included:

• Transport infrastructure and municipal services. During construction: noise, air pollution (mainly fugitive dust), water pollution, earthwork and soil erosion, solid waste disposal, interference with traffic and municipal services, as well as permanent and temporary acquisition of land, involuntary resettlement; and occupational and community health and safety. During operation: traffic noise, vehicle emissions and ambient air quality, traffic safety, and possible risk of spills caused by traffic accidents with impacts on rivers, groundwater and soil, and noise during operation of the HESs.

• River rehabilitation and flood control component (Tacheng). During construction: water pollution from increased river sediment transport, earthwork management, and impact on ecology along some sections of Kalangguer River. During operation: risk and impact of above-standard floods, changes in vegetation, and irrigation water consumption.

Table V-4: Impact scoping

Subproject Assessment

Item Project Phase Potential for Impact

Transport infrastructures and municipal services

Air Construction and

Operation

Construction period: Dust generated by construction activities, and asphalt smoke caused by road pavement; Operation period: Air pollution caused by traffic (vehicle emission), and odor from MSW collection and transfer equipment

Sound environment

Construction and operation

Construction period: Noise impacts by construction activities at noise sensitive locations; Operation period: traffic noise and noise impact to nearby residents from the heat exchange stations.

Surface water Construction and

operation

Construction period: Waterways and banks affected by bridge construction; increase river sediment; Operation period: Runoff from roads and discharge from drains and sewers.

Soil stability Construction Soil erosion caused by construction activities, in particular at slopes, stockpile areas, borrow pits and spoil disposal sites.

River Air Construction Dust generating from embankment earthworks.

79

Subproject Assessment

Item Project Phase Potential for Impact

revitalization and flood control

Ecology Construction In-stream ecology and riparian ecology.

Surface water Construction and

operation

Construction: water pollution from increased river sediment transport, earthwork management, and impact on ecology along some sections; Operation: risk of above standard floods, irrigation water demand

Soil stability Construction Soil erosion at construction sites, stockpile areas, spoil disposal sites.

Source: PPTA consultants

192 The following sections assess adverse impacts in detail. Pre-construction, construction and operational phase impacts are considered separately. Potential impacts from the project were considered under the following categories: (i) direct impacts – those directly due to the project itself; (ii) indirect and induced impacts – those resulting from activities arising from the project, but not directly attributable to it; and (iii) cumulative impacts – impacts which in combination would exert a significant additive influence.

C. Pre-Construction Phase

193 Measures during feasibility study and environmental impact assessment. A number of environmental management measures have been proposed during the preparation of the domestic FSRs, EISs, WSCP, this IEE and the LAR plans, and will be implemented in the pre-construction phase to ensure that appropriate plans and documentation to determine the environmental performance of construction and operation of project components are in place. These environmental considerations are further discussed below:

i) All the project sites, road alignments and the pipeline routes in the updated FSRs were carefully selected to avoid or minimize potential adverse impacts on the environment and surrounding communities;

ii) Wide consultations with key stakeholders and affected persons (APs) have been undertaken on the potential environmental and social impacts. Special consultations with community members, villagers, local water management authorities and experts were held with regard to the possible impacts of the river rehabilitation and flood control component. The comments and suggestions from the consultation activities have been incorporated into the updated FSRs, and will be included in the detailed designs;

iii) All components have undergone the EIA process under the PRC laws and regulations including EIA sections in the master plans, as well as ADB Safeguard Policy Statement (2009). The five EIS reports and six tabular EIAs were prepared by a licensed and qualified EIA institute, reviewed by expert panels, and were approved by Tacheng Prefecture EPB on 25 August and 2 September 2014, respectively;

iv) Spoil disposal sites and borrow areas in the four project city/counties have been identified (Table V-7);

v) Appropriate environmental mitigation measures and monitoring parameters, locations and frequencies are included in the EMP.

194 Measures during pre-construction. The following mitigation measures will be implemented during the pre-construction stage:

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i) Institutional strengthening. Each PIU will establish an environment management unit (EMU). Terms of Reference of the EMU are defined in the EMP (para 8). Amongst others, the EMU will hire local environment monitoring station (EMS) to conduct environment monitoring in accordance with the monitoring plan defined in the EMP. The Tacheng Prefecture PMO (TPPMO) will engage a safeguard officer (PMO-SO), and hire an environment specialist under the project management consulting services (CS-ES) to advise the TPPMO, LPMOs and PIUs on all aspects of environment management and monitoring. Each LPMO will assign an environment specialist (IA-ES) to supervise the PIUs and their EMUs.

ii) Updating EMP. Mitigation measures defined in the EMP will be updated, as needed, and incorporated into the detailed design to minimize adverse environmental impacts. This will be the responsibility of the TPPMO, LPMO and PIUs, using the DI(s).

iii) Confirmation of land acquisition and resettlement. The LAR Plans will be updated with the final inventory and the results will be incorporated into the detailed designs;

iv) Bidding document and contract documents. The EMP and the mitigation measures defined therein will be included in the bidding documents and contracts for procurement of civil works, goods and services. All contractors and subcontractors will be required to comply with the EMP;

v) Training in environmental management. Environmental specialists including CS-ES and/or experts/officials from Tacheng Prefecture EPB and XUAR EPD will provide training in implementation and supervision of environmental mitigation measures to contractors and CSCs;

vi) The environmental monitoring program incorporated in the EMP will be refined during detailed design, as needed, to ensure that environmental impacts are closely monitored and the construction and operating activities are closely supervised against the EMP;

vii) Grievance Redress Mechanism (GRM). Prior to construction, the TPPMO will put into place the pre-defined GRM (EMP, Section H), establish a project public complaints unit (PPCU) and provide training for PPCU members and GRM access points. PPCU’s phone number, fax, address and email will be disclosed to the public.

viii) Contractor obligations. In their bids, contractors will be required to respond to the environmental clauses for contractual terms and conditions defined in Appendix 2, and environmental management requirements defined in the EMP. Each contractor will be required to develop site-EMPs and will assign a person responsible for environment, health, and safety. The site-EMPs shall include the following plans: (a) Site drainage and soil erosion protection; (b) Spill control and management; (c) Environmental, health and safety management plan (EHSMP); (d) Surface water protection; (e) Temporary traffic management; (f) Construction site access control. These plans will be submitted to the PIUs’ EMUs for approval, with support of the LEPBs.

D. Impacts and Mitigation Measures during Construction

(1) Impacts on Geology and Soil

195 Impacts on soil. During construction, the project components could affect the soil in the project areas through erosion, contamination, and differential compaction. Soil erosion may be caused by roadbed construction; excavation of pipe trenches; stockpiles and spoils from earthwork

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during constructions of roads, bridges, pipelines and river rehabilitation. Bridge and river bank constructions may contribute to bank erosion and excessive amounts of sediment may enter into the surface water bodies if proper design and construction methods are not strictly followed. Soil contamination may result from the inappropriate transfer, storage, and disposal of polluted earth, petroleum products, chemicals, hazardous materials, liquids and solid waste.

196 Soil erosion. According to the water and soil conservation plans (WSCPs), the natural soil erosion intensity in the four project areas is 500 -1500 tons per square kilometer per year (belonging to wind erosion Gobi desert type). Higher soil erosion rates are expected during construction when surface vegetation and soil are damaged or disturbed. Soil erosion can also occur after completion of construction where site restoration is inadequate. The most vulnerable soil erosion areas in the construction sites of influence include deep cuts, high fills, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. The estimation of the soil erosion amounts for each component is shown in Table V-5 below.

Table V-5: Estimated Soil Erosion Amount for each Component during Construction (ton)

Component Impacted soil erosion area

(ha)

Original soil erosion amount

Increased soil erosion amount

Estimated total soil erosion

amount

Tacheng infrastructures 132.5633

1,658.1 6,367 8,035.3 Tacheng River 370.87 23,147.23 13,847.41 36,994.64 E’min Infrastructures 29.1 457 1,283 1,740 Tuoli Infrastructures 49.6 1,860 1,637 3,497 Yumin Infrastructures 25.6 307.5 1180.8 1,488.8 Total 475.2 27,429.8 24,315.2 51,755.7 Source: EISs and WSCPs for Tacheng and Emin

197 Earthwork. At the beginning of the PPTA, significant imbalance between earth excavation and fill was proposed in the original FSRs. Through policy dialog between the DI, the PPTA consultants and ADB Missions, surplus earth in the project components were significantly reduced. As a result, some 960,000 m3 of spoil and inert construction waste will be transported to the approved spoil disposal sites (Table V-7 and V-7).

Table V-6: Earth Balance for Each Project Component (m3)

No.

Road Length

of Rd (m) Excavation

(m3)

Filling (m3) Disposal (m

3) Borrow (m

3)

Tacheng Infrastructure and Municipal Service Component

1 Third Ring Road

including the Bridge 3,867 71,195 81,958 60,516 71,279

2 Fifth Ring Road

including the Bridge 2,678 63,317 47,589 53,820 38,092

3 Ti Yu Guan Xi Road 1,866 39,800 7,597 33,830 1,627

4 Chan Ye Yi Street

including the bridge 2,200 52,241 23,655 44,405 15,819

5 Chan Ye Nan San

Road 1,800 49,703 16,310 42,248 8,855

6 Second Ring Road 3,463 101,774 19,369 86,508 4,103

7 Tian Yuan Nan

Road 2,032 50,497 15,796 42,923 8,222

33

Includes the 13 roads and allays.

82

8 Xi Xing Nan Road 2,032 47,603 11,910 40,463 4,770

9 He Shan Nan Road including the Bridge

2,032 34,811 35,762 29,589 30,540

10 Fourth Ring Road 2,184 34,540 13,346 29,359 8,165

11 Chan Ye Si Street 3,016 40,069 15,145 34,059 9,135

12 He Mei Road 1,656 35,578 40,463 30,241 35,126

13 He Mu Nan Road

including the bridge 620 6,701 3,952 5,696 2,947

15 Allays 14,056 30,882 19,534 26,250 14,902

Subtotal of Tacheng

Infra. 43,503 658,711 352,386 559,905 253,580

Tacheng Kalangguer River Rehabilitation and Flood control Component

Subtotal of

River 15,100 159,200 2,393,400 35,200 2,269,400

Emin Infrastructure and Municipal Service Component

1 Arxiate Road 3,224 68,776 8,159 62,690 2,073

2 Wen Hua Road 664 24,207 560 23,647 -

3 Gui Hua Wu

Road1 931 40,882 15,546 25,336 -

4 Gui Hua Qi

Road 1,285 16,900 8,440 8,460 -

5 Gui Hua Jiu

Road 2,065 48,950 1,325 47,625 -

Subtotal of E’min Infra.

8,169 199,715 34,030 167,758 2,073

Yumin Infrastructure and Municipal Service Component

1 Gui Hua Yi

Road 1,476 26,993 9,199 17,794 -

2 Gui Hua Er

Road 1,876 27,106 5,581 22,609 1,084

3 Long Zhen

Road (Rehab) 2,338 28,175 8,078 21,448 1,351

4 Yu Jin Xiang

Road (Rehab) 1,370 16,512 4,885 11,627 -

5 Honghua Road 1,168 14,081 9,442 4,639 -

6 Donghuan Road 1,505 30,598 12,457 18,141 -

Subtotal of Yumin Infra

9,733 143,465 49,643 96,258 2,435

Tuoli Infrastructure and Municipal Service Component

1 Outer Ring

Road (subtotal) 14,090 130,971 195,953 104,777 169,759

Total for the five components

90,596 1,292,063 3,025,412 963,898 2,697,247

Source: domestic FSRs.

198 Identification of spoil disposal sites. Spoil disposal sites in the four project city/counties

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have been identified and approved by the local Land and Resource Bureaus (LRBs) in 2014, which are summarized in Table V-7. All sites have adequate capacities to receive spoil generated during project construction. Soil erosion protection plans of the spoil sites have been approved by local EPBs and WRBs, and environmental management performance of the sites including soil erosion protection and vegetation coverage restoration will be periodically monitored for compliance after the constructions start.

Table V-7: Approved Spoil Disposal Sites (m3)

Item Tacheng City Emin County Tuoli County Yumin County

Design capacity 3.0 million 1.4 million 1.2 million 210,000

Available capacity 2.0 million 1.4million 1.2 million 210,000

Distance from construction site

10 km 5 km 5 km 5 km

Transport route

The highway of 164 Regiment of XUAR of production and construction corps

West of the urban area

West and east of the urban area (the existing lowland caused by other constructions

South of the urban area

Approval Year (and authority)

2014 by Tacheng Land and Resources Bureau

2014 by E’min Land and Resources Bureau

2014 by Tacheng Land and Resources Bureau

2014 by Yumin Land and Resources Bureau

Approval document number

Tacheng- LRB-2014 /126

E’min-LRB- 2014/104

Tuoli-LRB- 2014/107 and 142

Yumin-LRB- 2014/104

Soil erosion protection plan

Available Available Available Available

Source: Domestic EISs

199 Measures for soil erosion control. Before construction, the contractor will be required to prepare a Site Drainage and Soil Erosion Management Plan (as part of the CS-EMP) to prevent soil erosion. The plan will include the following soil erosion control measures:

i) During road and bridge construction, maintain slope stability at cut faces by implementing erosion protection measures such as terraces and silt barriers;

ii) Stabilize all cut slopes, embankments, and other erosion-prone working areas while constructions are going on;

iii) All earthwork disturbance areas must be stabilized within 30 days after earthworks have ceased at the sites;

iv) Minimize active open excavation areas during trenching activities and use appropriate compaction techniques for pipe trenches construction;

v) Provide temporary detention ponds or containment to control silt runoff;

vi) Construct intercepting ditches and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage or open ground for watering the vegetation;

vii) Strip and stockpile topsoil, and cover or seed temporary soil stockpiles;

viii) Limit construction and material handling during periods of rains and high winds;

ix) Properly slope or re-vegetate disturbed surfaces, such as compacted pipeline trenches and cut banks;

x) Protect slopes on both sides of bridges; and

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xi) Appropriately set up temporary construction camps and storage areas to minimize the land area required and impact on soil erosion.

200 A soil erosion inspection and monitoring program has been defined in the water and soil conservation plans for Tacheng and Emin. Internal inspection and monitoring will be conducted by contractors and CSCs while compliance inspection and monitoring will be conducted semi-annually during construction activities by licensed institutes (EMP, Table EMP-6 and EMP-7). The inspection and monitoring results will be submitted to the LPMOs, PIUs, TPPMO, local EPBs and WRBs to serve as basis for project implementation progress reports and acceptance of construction.

201 Mitigation measures for soil contamination control, to be reflected in the Contractor site-EMPs, include the following:

i) Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas, and use the best management practice to avoid soil contamination;

ii) Remove all construction wastes from the site to approved waste disposal sites;

iii) Establish emergency preparedness and response plan (Spill Management Plan); and

iv) Provide spill cleanup measures and equipment at each construction site and require contractors to conduct training in emergency spill response procedures.

(2) Impacts on Hydrology and Water Quality

202 The following section assesses impacts on hydrology and water quality during construction, with a focus on bridge construction in the in the project city/counties, and the river rehabilitation works in Tacheng City. According to the component EISs, the proposed components are not expected to cause significant impacts on hydrology and water quality, but the measures for construction site management described below were defined in the domestic EISs, and incorporated in the project EMP.

203 Surface water pollution. Inappropriate storage and handling of petroleum products and hazardous materials, or accidental spills, disposal of domestic wastewater from construction camps, and wash-down water from construction machineries and vehicles may contaminate adjacent surface water or groundwater resources. Transport infrastructure, river rehabilitation, as well as pipeline works, will disturb surface soils and could affect surface water in the project areas through increased sedimentation in rivers, resulting from cutting and filling operations, excavation of pipeline trenches, and bridge constructions across the rivers. According to the FSRs for the infrastructure components, piles will be drilled during construction of the bridge foundation, which could disturb the river sediment and further increase suspended solid (SS) concentration in the water bodies. This impact is believed to be negligible, since the rivers are seasonal with minimal flow during the dry period, and construction of river bridge piers will be conducted during the dry season.

204 Impact on river hydrology from bridge construction. Ten cross river bridges with a span of 20-60 m will be constructed in Tacheng City and Emin County (Kalangguer River in Tacheng and Emin River in Emin, Figure V-1 and Figure V-2). All bridges have been designed based on the PRC flood control standard of 1-in-50 years.

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Figure V-1: Emin River in Emin County Figure V-2: Kalangguer River in Tacheng

City

205 Bridge construction, as well as river embankment revitalization works along Kalangguer River, may disrupt river hydrology through obstruction of flood flow and cause back water effect in the upstream during the high-flow season. In order to minimize these impacts, the following mitigation measures will be implemented (to be defined in contract specifications):

i) River bridge pier constructions and works on the riverbank shall be conducted during the dry season with low water level, construction during the high-flow season (April to June) will be prohibited;

ii) Bridge foundation treatment and pier grouting come first in pier construction;

iii) Cofferdam diversion will be set along the proposed river section; and

iv) Provide adequate bridge opening for flood flow before the high-flow season.

206 Construction wastewater and municipal solid waste (MSW). Wastewater produced during construction will come from washing aggregates, pouring and curing concrete, wastewater from maintenance and cleaning of mechanical equipment and vehicles. Based on the domestic EIS reports, during construction period, there will be five construction sites in Tacheng (three for Tacheng Infrastructure component and two for Tacheng River Component, respectively), two construction sites in Emin, and one construction site each in Tuoli and Yumin during the same period, each construction site will generate about 6 m3/d construction wastewater. The peak work force is estimated at 440 (200 for Tacheng Infrastructure Component and 240 for Tacheng River Component), 150, 80 and 150 workers in Tacheng, Emin, Tuoli and Yumin, respectively. The daily domestic wastewater discharge and the MSW production from each worker is 0.048 m3 and 0.6 kg, respectively. The construction and domestic wastewater generated during construction are summarized in Table V-8.

Table V-8: Wastewater and MSW Generated during Construction

Item Tacheng

Infra. Tacheng

River Emin Infra.

Tuoli Infra

Yumin Infra.

Total

Number of construction sites 3 2 2 1 1 9 Number of works 200 240 150 80 150 820 Construction wastewater (m

3/d) 18 12 12 6 6 42

Domestic wastewater (m3/d) 9.6 11.52 7.2 3.84 7.2 39.36

Domestic solid wastes (t/d) 0.12 0.144 0.09 0.048 0.09 0.492 Source: domestic EISs

207 Impacts on groundwater from road construction. As groundwater in the project’s areas of influence is generally relatively deep (average 15 m Tacheng, Emin and Yumin, and 22-44 m in Tuoli), no major impacts on groundwater resources are anticipated in either the construction or

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operation phases of the roads and auxiliary facilities. No wells/hand pumps are located in the area of potential impact. However, fuels and chemicals used for road construction could contaminate groundwater if they are not properly stored and disposed. Spills of toxic substances resulting from traffic accidents during construction may also contaminate groundwater if no proper emergency response is undertaken.

208 Measures to avoid surface water and groundwater pollution include the followings:

i) During bridge and river bank constructions, contractors will be required to pump slurry to shore and properly dispose cutting materials. This will reduce the disturbance of sediments and the impact to water quality;

ii) Contractors will be required to develop contingency plans for control of oil and other dangerous substances (Spill Management Plan) as part of the CS-EMP;

iii) Wastewater from construction activities will be collected in sedimentation tanks, retention ponds, and filter tanks to remove silts and oil;

iv) All areas where construction equipment is being washed will be equipped with water collection basins and sediment traps;

v) Fuel storage, maintenance shop and vehicle cleaning areas must be stationed at least 500 m away from the nearest water body;

vi) Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces, and provided with bunds and cleanup installations;

vii) Contractors’ fuel suppliers must be properly licensed. They shall follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods);

viii) Labor camps will be located at least 500 m from rivers;

ix) Eco-toilets and on-site wastewater pre-treatment systems will be installed at construction camps along with proper maintenance protocols; and

x) Water quality (for pollutants such as SS, CODcr, NH3-N and Petroleum) in rivers will be monitored by local EMSs during construction in accordance with the EMP monitoring program (Table EMP-6 and EMP-7) to identify and confirm results of the impact assessment and effectiveness of adopted mitigation measures.

209 Additional mitigation measures for the Tacheng river rehabilitation component. In addition to the above, the following measures will be implemented to protect the river water quality and avoid negative alteration of the river eco-system:

i) A water monitoring program will be developed and implemented to assess the impact of construction activities on the water quality, and compared with the baseline condition;

ii) All earthworks along the river will be accompanied by measures to minimize sediment runoff into the rivers. This will include the use of sediment traps to protect runoffs from construction activities.

(3) Impact on Air Quality

210 Pollution sources. Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation, filling, loading, hauling and unloading; (ii) dust generated

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from disturbed and uncovered construction areas, especially in windy days (Tacheng prefecture is an area with more heavy wind, especially in spring); (iii) dust generated by the movement of vehicles and heavy machinery on unpaved access and haul roads; (iv) dust from aggregate preparation and concrete-mixing; (v) vehicle emission from construction vehicles and heavy diesel machineries and equipment (gaseous CO, CH and NO2); and (vi) asphalt flue gas during road pavement. The dust and gaseous air emissions could affect nearby sensitive receivers, including villages, residential areas and schools identified in the Chapter IV of IEE.

211 The quantity of dust generated by the construction activities depends on the force of the wind, the humidity of the material, the level of construction and the state of site. It is estimated in the EISs that under the general condition (with an average wind speed of 2.5 m/s) in the area of 150 m downwind from the construction, the dust becomes less apparent and disturbing. For dust generated by transporting earth and other construction materials, the impact exceeds 60 m on both sides of the transport route.

212 A particular emission from road construction is asphalt flue gas. During the asphalt heating and mixing process, the fuel burning will produce smoke, and the asphalt will produce flue gases emissions. Currently, modern asphalt mixing equipment used in the PRC releases typical emission concentrations of asphalt flue gases of about 30 mg/m3, which complies with asphalt flue gas discharge requirements of 80-150 mg/m3 of Atmospheric Pollutant Emission Standard (GB16297-1996). It also complies with the Ambient Air Quality Standard (GB3095-1996), which limits the concentration of benzopyrene at 0.01 µg/m3 (at 100 m downwind from the asphalt mixing station).

213 A series of mitigation measures are defined in the EMP for reducing the impact of air emission on sensitive receivers:

i) Spraying water daily on construction sites and earth/material handling routes where fugitive dust is being generated;

ii) Locating asphalt plants and mixers at least 500 m downwind from the nearest residential areas and other sensitive receptors;

iii) Paying particular attention to dust suppression near sensitive receptors such as schools, hospitals and residential areas;

iv) Storing petroleum or other harmful materials in appropriate places and covering to minimize fugitive dust and emission;

v) Covering materials during truck transportation, in particular, the fine material, to avoid spillage or dust generation; and

vi) Ensure emissions from vehicle and construction machineries are in compliance with the PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285-2005.

214 With the above mitigation measures, the impact of construction on air quality is anticipated to be acceptable. This will be verified through visual inspections and ambient air quality monitoring in accordance with the monitoring plan defined in the EMP (Table EMP-6 and EMP-7).

(4) Noise

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LR

RLL

i

i∆−−=

0

0 lg20

a. Noise Intensity

215 A significant increase in noise is expected during construction, due to various construction and transport activities. Construction activities will involve excavators, bulldozers, graders, stabilizers, dredgers, concrete-mixing plants, drills, stone-crushing and screening plants, rollers, and other heavy machinery. Noise during pipeline construction will be generated by trench excavators, rollers and other compaction machine. Though noise levels may be severe, the noise will be temporary and localized. The major construction machinery noise values are shown in Table V-9.

Table V-9: Testing Values of Construction Machinery Noise

No. Machine Type Model Distance between Measuring Site

and Machinery (m) Maximum Sound Level

Lmax (B)

1 Wheel loader Model XL40 5 90

2 Wheel loader Model XL50 5 90

3 Grader Model PY160A 5 90

4 Vibrating roller Model YZJ10B 5 86

5 Two-wheeled two-vibrating roller

Model CC21 5 81

6 Three-wheeled roller 5 81

7 Tire roller Model ZL16 5 76

8 Bulldozer Model T140 5 86

9 Tire hydraulic excavator Model W4-60C 5 84

10 Paver (UK) Fifond311ABGCO 5 82

11 Paver (Germany) VOGELE 5 87

12 Generating set (two sets) FKV-75 1 98

Source: EIS Reports (PRC Ministry of Transportation, 2006. “Specifications for Environmental Impact Assessment of Road Construction)

b. Methodology for Prediction of Noise Value during Construction

216 Construction equipment noise source is considered as a point sound source, and the predictive mode is as follows:

Where, L i and L0 are equipment noise sound levels at R i and R0 respectively. ΔL is

additional diffusion attenuation produced by barriers, vegetation and air.

217 As for the impact of multiple construction machineries on a certain future position, sound level superposition is needed:

iL

L×Σ= 1.0

10lg10

c. Prediction Results

218 Noise levels at different distances are gained after calculating the impact scope of equipment noise during construction as defined in Table V-10. The PRC “Standard of Noise Limits for Construction Sites” (GB12523 90) specifies the noise limit in Class II areas as 70 dB (A) during daytime and 55 dB (A) during nighttime. The standard compliance noise impact scope (m) of different machineries is listed in Table V-11.

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Table V-10: Noise Values of Construction Machineries at Different Distances dB (A)

Machinery Name Distance to Machinery

5 m 10 m 20 m 40 m 50 m 60 m 80 m 100 m 150 m 300 m

Excavator 84 78 72 66 64 63 60 58 55 47

Bulldozer 86 80 74 68 66 65 62 60 57 49

Land scraper 90 84 78 72 70 69 66 64 62 54

Loader 90 84 78 72 70 69 66 64 62 54

Roller 86 80 74 68 66 65 62 60 57 49

Concrete-mixer 87 81 75 69 67 66 63 61 58 50

Asphalt concrete paver

85 79 73 67 65 64 61 59 56 48

Source: Domestic EIS Reports.

Table V-11: Road and Bridge Construction Equipment Noise Impact Scope

Construction Stage Construction Machinery Limit Standard (dB)

34 Impact Scope (m)

Daytime Nighttime Daytime Nighttime

Earth and Stone Work

Excavator 75 55 15 150

Bulldozer 75 55 18 180

Land scraper 75 55 29 290

Scraper loader 75 55 29 290

Piling Pile driver 85 Prohibited 126 /

Structure

Road roller 70 55 32 180

Truck 70 55 67 266

Vibrator 70 55 53 224

Dump truck 70 55 20 112

Mixing machine 70 55 29 200

Asphalt concrete paver 70 55 29 160

Source: Domestic EIs Reports.

219 The noise impact distances during construction of infrastructures for compliance with the PRC Standard of Noise Limits for Construction Sites (GB12524-90) are up to about 130 m away from the source during the day and 300 m at night (Table V-11 and V-11). In addition, construction materials, surplus spoil and construction wastes will be transported to and from the construction sites during the average 10 hour workday for the construction season of about 250 days per year in the project area for about 4 years. As a result, urban residential areas and villages through which haul roads pass and which are adjacent to construction sites will frequently experience noise levels at 70–80 decibels in the audible scale. Activities with intensive noise levels not only will have an impact on the residents, but also may cause injury to construction workers operating the equipment.

d. Mitigation Measures for Noise Impact

220 The following mitigation measures will be implemented to meet the PRC construction site noise limits and to protect sensitive receptors (see Chapter IV):

34

Standard of Noise limits for Construction Sites (GB 12523-90).

90

i) Ensure that noise levels from equipment and machinery conform to the PRC standard of GB12523-90, and properly maintain construction vehicles and machineries to minimize noise;

ii) Apply noise reduction devices or methods where piling equipment is operating within 300 m of sensitive sites such as schools, villages and residential areas (see Table IV-12, IV-18 and IV-27);

iii) Locate sites for rock crushing, concrete-mixing, and similar activities at least 1 km away from sensitive areas;

iv) To reduce noise at night, restrict the operation of machinery generating high levels of noise, such as piling, and movement of heavy vehicles along urban and village roads between 20:00 and 06:00 the next day in accordance with the PRC regulations;

v) Take special caution at construction sites that are close to such sensitive sites as schools, hospitals and office buildings. When construction activities are unavoidable during the school seasons, the use of heavy equipment will be restricted to weekends and non-class hours.

vi) Place temporary hoardings or noise barriers around noise sources during construction, if necessary;

vii) Monitor noise at sensitive areas at regular intervals (Table EMP-6 and EMP-7). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation; and

viii) Conduct monthly interviews with residents living adjacent to construction sites to identify community complaints about noise, and seek suggestions from community members to reduce noise annoyance. Community suggestions will be used to adjust work hours of noise-generating machinery.

(5) Vibration Impact

221 Vibration impacts are expected during infrastructure and river rehabilitation works, including vibrations from bridge pilling, pipeline trench compaction, river bank stone crashing, and roadbed compacting and rolling, etc. On the proposed construction sites, different degrees of mechanical vibration will occur. Such vibration is sudden and discontinuous, which can annoy people nearby the sites and construction workers. Main construction machineries include vibrating road rollers, land scrapers, loaders, stone crashers and spreading machines, among which the impacts of bridge pile drivers and vibrating road rollers are the highest. Pilling and compaction operations at night will be prohibited, which will effectively reduce the vibration impact to acceptable levels.

(6) Solid Waste

222 Solid waste from workers’ camps. According to the EISs, while most workers will live in rented apartments, some work camps will be also needed. An average of 0.6 kg/day per worker of garbage will be produced in construction camps according to the domestic EIS reports. A covered garbage basin will be installed at each construction camp. It will be the responsibility of the construction contractors to provide sufficient garbage bins at proper locations and ensure that they are protected from birds and vermin, and emptied regularly (using the local MSW collection systems). The contractors’ responsibility is included in the EMP and will be included in bidding documents and construction contracts.

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Table V-12: Municipal Solid Wastes Generated during Construction

Item Tacheng

Infra. Tacheng

River E’min Infra.

Tuoli Infra

Yumin Infra.

Total

Number of construction sites 3 2 2 1 1 9 Number of workers 200 240 150 80 150 820 Domestic solid wastes (t/d) 0.12 0.144 0.09 0.048 0.09 0.492 Source: domestic EISs

223 Construction wastes. Construction wastes could have adverse impacts on the surroundings if not properly managed. Construction wastes that cannot be used will be collected on site and not be discarded in a way that will damage the immediate environment. Inert construction wastes will be regularly transported off-site by the contractor for disposal at disposal sites approved by the local LRBs (Table V-6) in compliance with the Law on the Prevention and Control of Environmental Pollution by Solid Waste of the PRC (issued on 29 December 2004) and scrap material and demolition waste disposal standards promulgated by the Ministry of Housing and Urban-Rural Construction.

(7) Impact on ecological resources

224 Loss of habitats, impact on biodiversity. As established during environmental baseline assessment, the project areas are Gobi desert or steppe desert, none of the project sites is within a legally protected site or a site proposed for protection. The project sites do not include critical habitats with recognized critically endangered or endangered species. Project sites largely support degraded and modified habitats with low conservation value. No rare and endangered species were identified and recorded in the project areas during the domestic PPTA process.

225 The Tacheng Kalangguer River rehabilitation component supports the highest ecological value in the project area. According to the EIS, project embankment activities will avoid removal of native vegetation. Tree cutting and river bed dredging works will be avoided. The infrastructure and municipal service components and the Tacheng River rehabilitation component will together increase vegetated area by 1,497,088 m2, and planting trees and bushes of 192,825 (Table V-13) for environment improvement and landscaping purposes.

Table V-13: Increased Green Area and Trees Planting

Item Tacheng

Infra Tacheng

River Emin Yumin Tuoli Total

Increased green area (m2) 233,694 1,004,740 60,433 43,169 154,992 1,497,088 Planting trees (No.) 11800 167,465 4040 3880 5640 192,825

Source: Domestic EIS Reports

226 Ecological resources protection measures defined in the EMP (Table EMP-2) include the following:

i) Protect existing vegetation nearby construction sites;

ii) Protect existing trees and grassland during road, bridge, river rehabilitation and pipeline constructions; where a tree has to be removed or an area of grassland disturbed, replant trees and re-vegetate the area immediately after construction;

iii) In compliance with the PRC’s forestry law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation;

iv) Only native plant species of local provenance will be used for re-vegetation; and

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v) Identify, demarcate and protect sites where small animals, reptiles, and birds of common species live such as vegetated roadside areas, trees, inner areas of bridges and river beaches, etc.

(8) Impacts on Socio-Economic Resources

227 Land acquisition, resettlement. The project is classified as category A for the involuntary resettlement safeguard. The project will acquire about 1,474 mu of collective land and 1,481 mu of state-owned land (Table V-13). A total of 73,240 square meters (m2) of residential houses and 18,317 m2 shops and enterprises will be demolished. The permanent land acquisition and house demolition required by the project will affect a total of 674 households and 2,395 persons. Among these, 831 ethnic minority people will be affected, accounting for 34.7%. To attenuate land acquisition and resettlement impacts, resettlement plans have been developed for each project city/county. The resettlement information booklets were disclosed to the community and village offices and to affected persons in both the Chinese and Kazakh languages before ADB management review meeting. Compensation for lost assets and resettlement allowance will be paid to the affected persons before construction activities begin, and the livelihood rehabilitation arrangements made in accordance with the resettlement plans. Each city/county PMO and PIU will have at least two full-time resettlement staff, and each PIU will carry out internal supervision and monitoring to ensure compliance with resettlement plan provisions. An independent agency will be engaged to conduct the semiannual external monitoring and evaluation. The total cost estimate for land acquisition and resettlement is CNY370.64 million or $60.07 million in 2014 prices, including contingencies. ADB staff and external monitoring institution will supervise and monitor implementation of the resettlement plans to minimize grievances of the affected persons.

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Table V-14: Impact of Land Acquisition and Resettlement

Source: the PPTA Consultant

Item Unit Tacheng Emin Tuoli Yumin Total

Affected town/urban sub-district No. 1 2 2 1 6

Affected village/community No. 7 4 2 1 14

Permanent land acquisition

Total mu 1,743.41 181.63 845.31 184.64 2,954.99

Collective land mu 840.74 93.73 377.63 161.79 1,473.89

Farmland mu 626.07 81.00 373.93 161.79 1,242.79

House plot mu 157.78 12.73 0 0 170.51

Construction land mu 28.98 0 0 0 28.98

Enterprise land mu 0 0 0 0 0

Other land mu 27.91 0.00 3.70 0 31.61

State land mu 902.67 87.90 467.68 22.85 1,481.10

Acquisition of residential houses and structures

Rural house m2 35,517.67 7,389.18 0 0 42,906.85

Rural shanty m2 24,588.62 1,181.95 0 0 25,770.57

Urban house m2 0 2,713.50 0 0 2,713.50

Urban shanty m2 0 1,849.29 0 0 1,849.29

Urban enterprise/shop m2 16,712.53 1,604.30 0 0 18,316.83

Affected rural households and persons

By land acquisition only HH 263 32 77 41 413

person 866 103 323 161 1,453

By house demolition only HH 158 53 0 0 211

person 560 203 0 0 763

Both land and house acquisition HH 29 0 0 0 29

person 100 0 0 0 100

Affected urban households and persons

Acquisition of residential houses HH 0 21 0 0 21

person 0 79 0 0 79

Total of affected households HH 450 106 77 41 674

person 1,526 385 323 161 2,395

Total of enterprises/shops No. 15 1 0 0 16

person 127 19 0 0 146

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228 Risks to community health and safety. Traffic congestion may worsen as construction traffic in urban areas increases, causing temporary inconvenience to traffic, residents, commercial operations, and institutions. Some construction sites will be located close to residential communities and schools, presenting a threat to public health and safety. The constructions may also contribute to road accidents through the use of heavy machinery on existing roads. Construction may cause unexpected interruptions in municipal services and utilities because of damage to pipelines for water supply, drainage, and gas supply, as well as to underground power cables and communication cables (including optical fiber cables).

229 Mitigation of impacts on community health and safety. The potential impacts on community health and safety will be mitigated through a number of activities defined in the EMP (Table EMP-2). The contractors will implement the following measures:

i) Traffic management. A traffic control and operation plan will be prepared, to be approved by the local traffic management administrations before construction. The plan will include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed;

ii) Underground facilities survey and protection. Construction activities will be planned so as to minimize disturbances to utility services. Three-dimensional detection of underground facilities will be conducted before construction where appropriate;

iii) Information disclosure. Residents and businesses will be informed in advance through media and information boards at construction sites of the construction activities, given the dates and duration of expected disruption; and

iv) Construction sites protection. Clear signs will be placed at construction sites in view of the public, informing people about the project grievance redress mechanism (GRM), warning people against potential dangers such as moving vehicles, hazardous materials, excavations etc., and raising awareness on safety issues. Heavy machinery will not be used at night. All sites will be secured, disabling access by the public through appropriate fencing whenever appropriate.

230 Risks to occupational health and safety. Construction industry is considered to be one of the most hazardous industries. Intensive use of heavy construction machinery, tools, and materials present physical hazards including noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, fire hazards, chemical hazards such as toxic fumes and vapors, etc. Contractors will implement adequate precautions to protect the health and safety of their construction workers. The contractors will undertake the following activities, defined in the EMP (Table EMP-2):

i) Environmental, health and safety management plan. Each contractor will prepare such a plan for the construction works on the basis of the EMP. The plan will include the following provisions:

(a) Clean water. Provide a clean and sufficient supply of fresh water for construction sites and for all camps, offices and workshops;

(b) Sewage and wastewater. Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state;

(c) Solid waste. Garbage receptacles at construction sites and camps will be set up, which will be periodically cleared to prevent outbreak of diseases;

(d) Personal protection. Provide personal protection equipment, such as safety

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boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations for workers;

(e) Emergency preparedness and response. An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events, and submitted to the local EPBs for review and appraisal. Emergency phone link with hospitals in the three project towns will be established. A fully equipped first-aid base in each construction camp will be organized;

(f) Records management. A records management system that will store and maintain easily retrievable records against loss or damage will be established. It will include documenting and reporting of occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits;

(g) Safety communication. Ensure that occupational health and safety matters are given a high degree of publicity to all persons regularly or occasionally on each construction site. Posters will be displayed prominently in relevant areas of the site; and

(h) Training, awareness and competence. Train all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work. Implement site HIV/AIDS and other communicable diseases awareness and prevention program to target the local community and construction workers.

231 Ethnic Minorities. The project is classified as category B for the indigenous peoples safeguard. The total population of ethnic minorities in Tacheng Prefecture is about 46% of the total population. The top seven minorities in the Project area and Tacheng Prefecture based on the last census are Kazak, Hui, Mongolia, Uygur, Daur, Russian and Xibe. In Tuoli County the ethnic minority population constitutes about 75% of total population with predominant Kazak minority group. The poverty and social assessment found that the urban communities are ethnically mixed, although some aspects, such as cultural and language differences are maintained. An Ethnic Minority Development Plan (EMDP) has been developed which focuses on measures to facilitate the inclusion of ethnic minority people in all project activities and to protect them from any disadvantages that language barriers may create with respect to employment by project contractors. They also include measures to ensure that their customs and beliefs will be respected throughout implementation. Ethnic minorities will not be adversely affected, except for 224 households for resettlement in 12 communities/villages. Appropriate livelihood restoration measures associated with resettlement are incorporated in the resettlement plans. Key issues addressed in the EMDP ensure (i) that affected ethnic minority people are effectively involved in planning, implementation, and monitoring of the project; (ii) that impacts and risks potentially affecting ethnic minority people are mitigated; (iii) that ethnic minority people will benefit from such positive impacts as temporary job creation, and (iv) that Dauer folk custom tourism development will be promoted. Prior to the commencement of any component, the city/county PMO will ensure that briefings on ADB’s policies with respect to ethnic minorities, and on the EMDP, are provided both for their own members, and for PIUs.

232 Other Social Issues. No other social risks and/or vulnerability are anticipated as a result of the project. The project construction workers will be engaged locally. Prevention and control of transmissible diseases and HIV/AIDS, and community disturbance training and sensitization will be provided to the contractors, as well as drug and human trafficking education will be provided to the local communities, ensured in the loan assurances and monitored in the social action plans. Core labor standards will be implemented. Civil works contracts will stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men, (iii) pay equal wages for work of equal value, and pay women’s wages directly to them; and (iv) not employ child or forced labor. Specific targets for employment have been included in the gender action plan (GAP).

96

233 Impact on physical cultural resources. No cultural heritage or archaeological sites are recorded within the project areas. However, construction activities have the potential to disturb unknown underground cultural relics. The mitigation measures will include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The local relic management authorities and the PIUs and TPPMO will be promptly notified, and construction will resume only after thorough investigation and with the permission of the appropriate authority. The clause for protection of unknown underground cultural relics will be included in construction contracts.

E. Environmental Impact and Mitigation Measures during Operation

(1) Operation of Transport Infrastructures and Municipal Services (Sewer, Water Supply)

234 Main environmental issues during operation of the urban roads, bridges and auxiliary piped facilities in the four project city/counties relate to vehicle emissions, traffic noise, traffic safety and the related risk of hazardous spills, water pollution from storm-water and snow melt water runoffs, and inappropriate sewage collection and associated wastewater treatment.

a. Air Pollution

235 NO2 and CO are the parameters designated in the EISs by the EIA Institute for assessing traffic emission impact on air quality. The baseline monitoring indicates that the average concentrations of NO2 in the four project city/counties met Grade II of the PRC Ambient Air Quality Standard of GB3096-1996 (see baseline data in Chapter IV of this IEE).

236 By using traffic volume projections provided in the FSRs, ambient air quality projections were modeled during the domestic EIA studies based on the AERMOD methodology (software), which is recommended in the PRC “Technical Guideline on Environmental Impact Assessment – Atmospheric Environment” (HJ2.2-2008). Vehicle emission concentrations at average traffic volumes (both daily average and rush hours) during the operation period at sensitive locations were estimated. Table V-15 to Table V-18 show that the predicted incremental concentrations of NO2 and CO for 2019 (short-term), 2029 (medium-term), and 2039 (long-term) on ground level along both sides of the project roads at the sensitive locations in the counties of Emin and Yunmin all meet the Grade II national Standards of GB3095-1996 and GB3095-2012.35

237 The proposed roads in Tacheng City will be constructed in a new area, where there is currently no sensitive receptor. But according to the Tacheng City’s master plan, residential buildings, hospitals and schools will be built on both sides of the roads, thus air quality projections were modeled for different distances from the roads. According to the predicted pollutants values of CO and NO2 in the domestic EIS, as long as the distance between the roadside and the first row of buildings is more than 10 m (Table V-15), ambient air quality will meet the grade II standard of GB3095-1996 and GB3095-2012 in the short, medium and long term.

238 There will be only a road (Outer Ring Road) to be built in Tuoli County. Same as that in Tacheng City, there is currently no sensitive receptor along the road corridor. The purpose of the road is to bypass heavy trucks from the urban area. The domestic EIS predicts that as long as the distance between the roadside and the first row of buildings is more than 15 m (Table V-16), CO and NO2 levels will meet the grade II standard of GB3095-1996 and GB3095-2012 in the short, medium and long term.

35

GB3096-2012 will take effect in Jan. 2016, in which the standards for NO2 and CO in hourly average concentration are 0.2

mg/m3 and 10.0 mg/m

3, respectively.

97

Table V-15: NO2 & CO Concentrations at Different Distances from Roadsides in Tacheng City during Operation (hourly average, mg/m3)

Wind speed: 2.5m/s

Road Pollutant Distance to the Roadside (m)

10 20 30 40 60 80 100 150 200

Third Ring Road

2019 CO 0.5887 0.6013 0.5992 0.5832 0.5246 0.4533 0.4018 0.3173 0.2478

NO2 0.0153 0.0157 0.0156 0.0152 0.1361 0.0117 0.0099 0.0068 0.0066

2029 CO 1.1056 1.1293 1.1252 1.0952 0.9852 0.8513 0.7546 0.5958 0.4653

NO2 0.0029 0.0029 0.0293 0.0029 0.0026 0.0022 0.0019 0.0013 0.0012

2039 CO 1.6226 1.6573 1.6513 1.6073 1.4458 1.2494 1.1075 0.8744 0.6828

NO2 0.0423 0.0432 0.0431 0.0419 0.0375 0.0322 0.0274 0.0186 0.0182

Fifth Ring Road

2019 CO 0.4864 0.4968 0.4950 0.4818 0.4334 0.3745 0.3320 0.2621 0.2047

NO2 0.0126 0.0130 0.0129 0.0125 0.1125 0.0097 0.0082 0.0056 0.0055

2029 CO 1.0995 1.1230 1.1190 1.0892 0.9797 0.8466 0.7505 0.5925 0.4627

NO2 0.0029 0.0029 0.0292 0.0028 0.0025 0.0022 0.0019 0.0013 0.0012

2039 CO 1.7127 1.7493 1.7430 1.6966 1.5261 1.3187 1.1690 0.9230 0.7207

NO2 0.0446 0.0456 0.0455 0.0442 0.0396 0.0340 0.0289 0.0197 0.0193

Tiyuguan Xi Road

2019 CO 0.3584 0.3661 0.3648 0.3550 0.3194 0.2760 0.2446 0.1931 0.1508

NO2 0.0093 0.0095 0.0095 0.0092 0.0829 0.0071 0.0060 0.0041 0.0040

2029 CO 0.8553 0.8735 0.8704 0.8472 0.7621 0.6585 0.5837 0.4609 0.3599

NO2 0.0022 0.0023 0.0227 0.0022 0.0020 0.0017 0.0014 0.0010 0.0010

2039 CO 1.3521 1.3810 1.3761 1.3394 1.2048 1.0411 0.9229 0.7286 0.5690

NO2 0.0352 0.0360 0.0359 0.0349 0.0313 0.0269 0.0228 0.0155 0.0152

Changye Yi Street

2019 CO 0.3327 0.3398 0.3386 0.3296 0.2965 0.2562 0.2271 0.1793 0.1400

NO2 0.0086 0.0089 0.0088 0.0086 0.0769 0.0066 0.0056 0.0038 0.0037

2029 CO 0.8424 0.8604 0.8573 0.8345 0.7507 0.6486 0.5750 0.4540 0.3545

NO2 0.0022 0.0022 0.0224 0.0022 0.0019 0.0017 0.0014 0.0010 0.0009

2039 CO 1.3521 1.3810 1.3761 1.3394 1.2048 1.0411 0.9229 0.7286 0.5690

NO2 0.0352 0.0360 0.0359 0.0349 0.0313 0.0269 0.0228 0.0155 0.0152

Changyenan San Road

2019 CO 0.4607 0.4705 0.4689 0.4564 0.4105 0.3547 0.3144 0.2483 0.1939

NO2 0.0120 0.0123 0.0122 0.0119 0.1065 0.0092 0.0078 0.0053 0.0052

2029 CO 1.0416 1.0639 1.0601 1.0318 0.9281 0.8020 0.7109 0.5613 0.4383

NO2 0.0027 0.0028 0.0276 0.0027 0.0024 0.0021 0.0018 0.0012 0.0012

2039 CO 1.6226 1.6573 1.6513 1.6073 1.4458 1.2494 1.1075 0.8744 0.6828

NO2 0.0423 0.0432 0.0431 0.0419 0.0375 0.0322 0.0274 0.0186 0.0182

The Second Ring Road 2019 CO 0.3929 0.4013 0.3998 0.3892 0.3501 0.3025 0.2681 0.2117 0.1653

NO2 0.0102 0.0105 0.0104 0.0101 0.0908 0.0078 0.0066 0.0045 0.0044

98


10 20 30 40 60 80 100 150 200

2029 CO 1.0353 1.0575 1.0537 1.0256 0.9225 0.7972 0.7067 0.5579 0.4357

NO2 0.0027 0.0028 0.0275 0.0027 0.0024 0.0021 0.0017 0.0012 0.0012

2039 CO 1.6778 1.7137 1.7075 1.6621 1.4950 1.2919 1.1452 0.9042 0.7061

NO2 0.0437 0.0447 0.0445 0.0433 0.0388 0.0333 0.0283 0.0193 0.0189

Tianyuan Nan Road

2019 CO 0.3181 0.3249 0.3237 0.3151 0.2835 0.2449 0.2171 0.1714 0.1339

NO2 0.0083 0.0085 0.0084 0.0082 0.0736 0.0063 0.0054 0.0036 0.0036

2029 CO 0.8610 0.8794 0.8762 0.8529 0.7672 0.6629 0.5876 0.4640 0.3623

NO2 0.0022 0.0023 0.0229 0.0022 0.0020 0.0017 0.0015 0.0010 0.0010

2039 CO 1.4038 1.4338 1.4287 1.3907 1.2509 1.0809 0.9582 0.7565 0.5908

NO2 0.0366 0.0374 0.0373 0.0362 0.0325 0.0279 0.0237 0.0161 0.0158

Xixing Nan Road

2019 CO 0.2245 0.2293 0.2285 0.2224 0.2000 0.1729 0.1532 0.1210 0.0945

NO2 0.0058 0.0060 0.0060 0.0058 0.0519 0.0045 0.0038 0.0026 0.0025

2029 CO 0.6457 0.6595 0.6571 0.6396 0.5753 0.4971 0.4407 0.3479 0.2717

NO2 0.0017 0.0017 0.0171 0.0017 0.0015 0.0013 0.0011 0.0007 0.0007

2039 CO 1.0668 1.0896 1.0857 1.0568 0.9506 0.8214 0.7281 0.5749 0.4489

NO2 0.0278 0.0284 0.0283 0.0275 0.0247 0.0212 0.0180 0.0122 0.0120

Heshan Nan Road

2019 CO 0.2058 0.2102 0.2095 0.2039 0.1834 0.1585 0.1405 0.1109 0.0866

NO2 0.0053 0.0055 0.0055 0.0053 0.0476 0.0041 0.0035 0.0024 0.0023

2029 CO 0.6160 0.6292 0.6269 0.6102 0.5489 0.4743 0.4204 0.3320 0.2592

NO2 0.0016 0.0016 0.0163 0.0016 0.0014 0.0012 0.0010 0.0007 0.0007

2039 CO 1.0262 1.0481 1.0444 1.0165 0.9144 0.7901 0.7004 0.5530 0.4318

NO2 0.0267 0.0273 0.0272 0.0265 0.0237 0.0204 0.0173 0.0118 0.0115

The Fourth Ring Road

2019 CO 0.2806 0.2866 0.2856 0.2780 0.2501 0.2161 0.1916 0.1512 0.1181

NO2 0.0073 0.0075 0.0074 0.0072 0.0649 0.0056 0.0047 0.0032 0.0032

2029 CO 0.7681 0.7846 0.7818 0.7609 0.6845 0.5915 0.5243 0.4139 0.3232

NO2 0.0020 0.0020 0.0204 0.0020 0.0018 0.0015 0.0013 0.0009 0.0009

2039 CO 1.2556 1.2825 1.2779 1.2439 1.1189 0.9668 0.8570 0.6767 0.5284

NO2 0.0327 0.0335 0.0333 0.0324 0.0290 0.0250 0.0212 0.0144 0.0141

Changye Si Street

2019 CO 0.2432 0.2484 0.2475 0.2409 0.2167 0.1873 0.1660 0.1311 0.1023

NO2 0.0063 0.0065 0.0065 0.0063 0.0562 0.0048 0.0041 0.0028 0.0027

2029 CO 0.6754 0.6898 0.6873 0.6690 0.6018 0.5200 0.4610 0.3639 0.2842

NO2 0.0018 0.0018 0.0179 0.0017 0.0016 0.0013 0.0011 0.0008 0.0008

2039 CO 1.1075 1.1312 1.1272 1.0971 0.9869 0.8528 0.7559 0.5968 0.4661

NO2 0.0289 0.0295 0.0294 0.0286 0.0256 0.0220 0.0187 0.0127 0.0125

99


10 20 30 40 60 80 100 150 200

Hemei Road

2019 CO 0.3327 0.3398 0.3386 0.3296 0.2965 0.2562 0.2271 0.1793 0.1400

NO2 0.0086 0.0089 0.0088 0.0086 0.0769 0.0066 0.0056 0.0038 0.0037

2029 CO 0.8424 0.8604 0.8573 0.8345 0.7507 0.6486 0.5750 0.4540 0.3545

NO2 0.0022 0.0022 0.0224 0.0022 0.0019 0.0017 0.0014 0.0010 0.0009

2039 CO 1.3521 1.3810 1.3761 1.3394 1.2048 1.0411 0.9229 0.7286 0.5690

NO2 0.0352 0.0360 0.0359 0.0349 0.0313 0.0269 0.0228 0.0155 0.0152

Hemu Nan Road

2019 CO 0.2058 0.2102 0.2095 0.2039 0.1834 0.1585 0.1405 0.1109 0.0866

NO2 0.0053 0.0055 0.0055 0.0053 0.0476 0.0041 0.0035 0.0024 0.0023

2029 CO 0.5937 0.6064 0.6043 0.5882 0.5291 0.4572 0.4052 0.3200 0.2499

NO2 0.0015 0.0016 0.0158 0.0015 0.0014 0.0012 0.0010 0.0007 0.0007

2039 CO 0.9816 1.0026 0.9990 0.9724 0.8747 0.7559 0.6700 0.5290 0.4131

NO2 0.0256 0.0262 0.0261 0.0253 0.0227 0.0195 0.0166 0.0113 0.0110

Source: EIS Report of Tacheng Infra Component

Table V-16: NO2 & CO Concentrations at Different Distances from Roadsides in Tuoli County during Operation (mg/m

3)

Wind speed: 2.5m/s


10 30 45 60 90 120 150

Outer Ring Road

2019 CO 1.0290 0.9081 0.7276 0.5952 0.4656 0.3687 0.3437

NO2 0.1230 0.1135 0.0955 0.0645 0.0542 0.0447 0.0404

2029 CO 1.168 1.030 0.826 0.675 0.528 0.418 0.390

NO2 0.140 0.129 0.108 0.073 0.062 0.051 0.046

2039 CO 1.3062 1.1528 0.9237 0.7555 0.5911 0.4680 0.4363

NO2 0.1562 0.1442 0.1212 0.0819 0.0688 0.0568 0.0513

Source: EIS Report of Tuoli Infra Component

100

Table V-17: NO2 & CO Concentrations at Sensitive Locations in Emin County during Operation (mg/m3)

Wind speed: 2.23m/s

Sensitive Locations

Location & Distance from Roadside (m)

Year Time

CO (mg/m3) NO2 (mg/m

3)

Predicted Concentration

Standard Compliance to

standard Predicted

Concentration Standard

Compliance to Standard

East Campus of Emin No. 1 Middle school

20 m north of Aerxia Road

2019 Rush hours 1.568284 10 meet 0.040898 0.2 meet

Daily average 0.511204 4 meet 0.013332 0.08 meet





Longfeng Kindergarten

20 m of north of Aerxia Road







Eastern bungalow residential Area

75 m north of Aerxia Road







No. 5 Primary School of E’min County

50 m south of Aerxia Road







No. 3 Primary School of E’min County

50m north of Aerxia Road





101

Sensitive Locations


Year Time


3)



standard Predicted





Women's and Children's Hospital of Emin County

30 m south of Aerxia Road







Northern Residential Building of E’min County

70 m west of Guihuaxi Road







Source: EIS Report of Emin Component

Table V-18: NO2 & CO Concentrations at Sensitive Locations in Yumin County during Operation (mg/m3)

Wind speed: 2.23m/s

Sensitive Locations


Year Time


3)


36


standard Predicted



Honghua Residential Community

10 m east of Honghua Road







Xianghe 10 m east of Honghua 2019 Rush hours 0.863424 10 meet 0.022502 0.2 meet

102

Sensitive Locations


Year Time


3)


36


standard Predicted



Residential Community

Road






Yuninyuan Residential Community

20 m west of Yujinxiang Road







Bilingual Kindergarten of Yumin County

55 m east of Yujinxiang Road







Jixiang Residential Community

15 m east of Yujinxiang Road







Shanhua Residential Community








103

Sensitive Locations


Year Time


3)


36


standard Predicted



Jindi Garden Residential Community








Women’s and Children’s Hospital of Yumin County

15 m east of ujinxiang Road







Tuanjie Garden’s Residential Community

10 m east of Longzhen Road







No. 1 Primary School of Yumin County

20 m west of Longzhen Road







Source: EIS Report of Yumin Infra Component

104

239 Air pollution control. The control of vehicle emissions on the project roads is closely related with the policies and measures for emission control of XUAR and the PRC. Therefore, the vehicle emission control measures under the infrastructure components of the four project city/counties should be considered in the context of XUAR and national policies and measures for vehicle emission control.

240 In 2005, the PRC promulgated the “Limits and Measurement Methods for Emissions of Pollutants from Light-duty Vehicles (grade III, grade IV)” (GB18352.3-2005), which became effective on 1st July 2007. At present, Tacheng Prefecture is conducting on-road inspection and annual examination of vehicle exhaust pollutants for each vehicle. As a result of these inspections, substandard vehicles, both private and public, are refused registration for road use, until they meet the standard. The local EPBs and the local Traffic Management Bureaus (TMBs) at county and city level are in charge of implementing all the policies and measures for vehicle emission control formulated by the PRC state and XUAR authorities, and take the corresponding measures to control the exhaust pollutants emission of vehicles running on the proposed roads.

241 Ambient air quality monitoring will be conducted semi-annually during road operation at sensitive sites by local EMSs, as indicated in the monitoring plan (Table EMP-6). The capacity development component under this ADB project includes urban traffic management technical assistance with emphasis on non-motorized transport, public transport and traffic safety, which will also support and cooperate with the project city/counties to improve the control of vehicle exhaust pollution and manage traffic flows along the proposed road networks.

b. Traffic Noise

242 Prediction model for traffic noise. The noise prediction during operation of new roads has adopted the road noise prediction model as recommended in Appendix A.2 of the PRC Technical Guidelines for Assessment of Environmental Impact - Acoustical Environment (HJ2.4-2009). It has also used the horizontal noise generation of vehicles at speed from Annex C of Assessment Criterion on Environmental Impact in Road Construction Project (JTG B03-2006) and the attenuation effects of building groups in GB/T17247.2.

243 Using average running velocity of various vehicle types and predicted traffic flows and the calculation of noise at source, the distance at which compliance with PRC ambient noise standards are reached have been calculated in each component EIS. The analyses then used these noise/distance calculations to predict the future noise levels at sensitive receptors along the roads.

244 The noise impact assessment criteria for the proposed roads in the project city/counties are: (i) for areas within 35 m from the edges of road red-lines, the applicable standard is Grade 4a (70 dB for daytime and 55 dB for nighttime) of the Acoustic Environmental Quality Standard (GB3096-2008); (ii) for areas beyond 35 m from the red-lines of roads, Grade II standard is applicable (60 dB for daytime and 50 dB for nighttime) according to the Classification of Acoustic Environmentally Functional Zones issued by the Tacheng Prefecture EPB.

245 Traffic noise prediction for the Tacheng component. Traffic noise prediction values for the selected sites in short, medium and long term in the domestic EIS are showed in Table V-20 for the roads in Tacheng City. The predicted noise levels in both daytime and nighttime at all points meet the Grade 4a and Grade II standards of GB 3096-2008 in the predicted years of 2019, 2029 and 2039, respectively.

105

Table V-19: Traffic Noise Prediction in Tacheng City Unit: Leq [dBA]

Selected Location Distance from the First Row of

Building to Road Edge

Predicted Year

2019 2029 2039

Day Night Day Night Day Night

Liuhe Residential Community

20 m 53 48.3 57.2 52.4 59.6 54.5

Huaxi Residential Community

40 m 49.4 44.7 52.8 48.0 55.3 50.2

Beijinxincheng Residential Community

20 m 50.6 45.9 54.9 50.2 57.2 52.3

Liaota New Area Residential Community

30 m 51.0 46.3 55.3 50.4 57.7 52.6

4a Standard (for above) 70 55 70 55 70 55

Tacheng Minzu Hospital 70 m 48.9 44.1 51.6 46.6 53.5 48.3

Tacheng Socialism College

80 m 42.4 37.7 46.8 42.0 49.2 44.2

Grade II standard (for above) 60 50 60 50 60 50

246 Traffic noise prediction for the Emin component. Traffic noise prediction values for the selected sensitive sites in short, medium and long term are showed in Table V-20 for the roads in Emin County. The predicted noise level in both daytime and nighttime at all sensitive receptors meet the Grade 4a and Grade II standards of GB 3096-2008 in the predicted years of 2019, 2029 and 2039, respectively.

Table V-20: Traffic Noise Prediction in Emin County Unit: Leq [dBA]

Sensitive Location Distance from the First Row of


Predicted Year

2019 2029 2039


Eastern Campus of Emin No. 1 Middle School

20 m (No. 17 Rd) 55.65 48.56 58.14 51.37 60.62 54.17

Longfeng Kindergarten 20 m (No. 11 Rd) 55.65 48.56 58.14 51.37 60.62 54.17

No. 5 Primary School of Emin County

50 m (No. 11 Rd) 53.26 46.17 55.75 48.98 58.23 51.78

No. 3 Primary School of Emin County

50 m (No. 17 Rd) 53.26 46.17 55.75 48.98 58.23 51.78

Women’s and Children’s Hospital of Emin County

30 m (No. 10 Rd) 54.70 47.60 57.19 50.41 59.67 53.21


Eastern bungalow Residential Area

75 m (No. 11 Rd) 51.92 44.79 54.41 47.60 56.90 50.41

Northern Residential Building

265 m (No. 11 Rd) 52.18 45.08 54.67 47.89 57.15 50.69


Source: EIS Report.

247 Traffic noise prediction for Yumin roads. Traffic noise prediction values for the selected sensitive sites in short, medium and long term, are showed in Table V-21 for the Yumin roads. The predicted noise level in both daytime and nighttime at all sensitive receptors meet the Grade 4a and Grade II standards of GB 3096-2008 in the predicted years of 2019, 2029 and 2039, respectively.

106

Table V-21: Traffic Noise Prediction in Yumin County Unit: Leq [dBA]

Sensitive Location Distance from the First Row of


Predicted Year

2019 2029 2039


Honghua Residential Community

10 m (No. 17 Rd) 58.74 48.07 61.74 52.79 64.74 57.52

Xianghe Residential Community

10 m (No. 11 Rd) 58.74 48.07 61.74 52.79 64.74 57.52

Yujinxiang Residential Community

20 m (No. 11 Rd) 55.10 44.07 57.84 48.99 60.58 53.92

Jixiang Residential Community

15 m (No. 17 Rd) 57.21 46.32 59.85 50.77 62.49 55.22

Shanhua Residential Community

10 m (No. 10 Rd) 60.75 49.11 63.48 54.33 66.22 59.56

Jindi Garden Residential Community

10 m (No. 10 Rd) 60.75 49.11 63.48 54.33 66.22 59.56

Women’s and Children’s Hospital of Yumin County

15 m (No. 10 Rd) 57.21 46.32 59.85 50.77 62.49 55.22

Tuanjiehuayuan Residential Community

10 m (No. 10 Rd) 60.96 52.34 63.89 56.56 66.81 60.79

No. 1 Primary School 20 m (No. 10 Rd) 55.32 47.29 58.24 51.215 61.16 55.14


Bilingual Kindergarten of Yumin County

55 m (No. 11 Rd) 52.40 41.37 55.12 46.30 57.84 51.23


Source: EIS Report.

248 Traffic noise prediction for Tuoli Outer Ring-Road. There is no noise sensitive receptor along the proposed Tuoli Outer Ring Road. The purpose of the road is to bypass heavy trucks from the urban area. According to the predicted noise level in the domestic EIS, as long as the distance between the roadside and the first row of buildings is more than 80 m (Table V-22) in the future, the predicted data meet the grade II standard of GB3096-1993 in the short, medium and long terms.

Table V-22: Predicted Noise at Different Distances from Roadsides of Tuoli Outer Ring Road during Operation (dB(A))

Road Year Time Distance to the Roadside (m)

10 20 30 40 60 80 100 120 150 200

Outer Ring Road

2019 Day 65.5 62.6 60.4 58.8 56.2 54.3 52.7 51.4 49.8 47.6

night 60.6 57.5 55.3 53.6 50.9 48.9 47.3 45.9 44.2 41.9

2029 Day 66.1 63.2 61.1 59.5 56.9 55.0 53.5 52.2 50.6 48.5

night 61.1 58.1 55.9 54.2 51.5 49.5 47.9 46.5 44.8 42.6

2039 Day 66.7 63.8 61.7 60.1 57.6 55.7 54.2 52.9 51.3 49.2

night 61.6 58.6 56.4 54.7 52.1 50.1 48.4 47.1 45.4 43.2

Source: EIS Report.

249 According to the noise predictions presented in the domestic EIS reports, noise levels are predicted to meet the standard in the short, medium and long term, in both daytime and nighttime, but the following noise attenuation and protection measures will also be implemented during the operation stage:

107

i) Low-noise pavement materials shall be used for road maintenance when possible, particularly on the road section nearby the environmentally sensitive sites;

ii) Noise monitoring will be undertaken at the locations and frequencies indicated in the EMP (Table EMP-6) by the four local EMSs; and

iii) Trees and shrubs will be planted as soon as possible along the proposed roadsides after construction; native species of local provenance will be used.

c. Water Pollution

250 Stormwater and snow-melt runoff. Average annual precipitation in the project city/counties is 243-289 mm, while the annual evaporation is 1650-1984 mm. The dry season lasts about 8-9 months, during which roadside greenbelts have to be watered by using scarce water resources. The project will promote local stormwater infiltration by designing roadside curbs with holes (Figure V-3), which is beneficial for transferring runoffs from impermeable surfaces to roadside greenbelts and other permeable ground to increase infiltration amount.

Figure V-3: Designed Curbs with Holes

251 In addition to above design, the following measures will be implemented by the local housing and construction bureaus (LHCBs) as well as the local traffic management bureaus (LTMBs) during road operation to minimize the risk of surface water pollution along project roads. Surface water quality will be monitored regularly at project bridges in accordance with the monitoring plan (Table EMP-6).

(i) Routinely collect and properly dispose litter and debris from sidewalks, driveways, and parking lots, especially near rivers and channels;

(ii) Install litter traps along waterways (small floating mesh traps attached to one bank) and regularly empty these;

(iii) Clean the roadside catch basins before rainy season to avoid surface water pollution by storm water runoff flushing debris and silt;

(iv) Place garbage bins and containers along the road networks;

(v) Maintain storm-water retention and infiltration facilities along the roads;

(vi) Regularly inspect and maintain project sewers;

(vii) Review performance of linked WWTPs in the project city/counties (treatment performance, compliance with effluent standards).

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f. Health and Safety

252 Traffic safety. The concerns over community safety of the proposed roads have been thoroughly examined during the PPTA. All roads have separate pedestrian sidewalks. All major roads have separate lanes for non-motorized traffic. Pedestrian-priority traffic lights, safety islands, crosswalks (zebra lines), and boarding bays/islands will be established at all intersections. Road maintenance vehicles will be equipped with warning lights, and staff will wear safety hats and reflective garments and undergo safety training (included in the training plan).

253 The project will also include traffic management and traffic control systems to help improving the traffic condition in the project cities. The project’s capacity building component will bring in urban traffic safety expertise to help the local governments to improve urban road safety. The urban traffic safety experts will conduct traffic safety audits for the project city/counties to identify safety concerns in design, traffic safety feature implementation, traffic safety education and enforcement needs, and help to develop a program for public safety education and safety awareness. Based on the results of the assessment, the recommendation for improving urban traffic safety as outlined in the traffic safety audit report will be provided to the project city/counties’ governments for their taking action to improve the urban traffic safety.

254 Accidental spills. The haulage of hazardous goods on the proposed roads and bridges represents a risk for pollution to rivers, groundwater, soil, villages and residential areas. According to the domestic EISs, hazardous and dangerous goods expected to be transported on the proposed roads include petrol, chemical fertilizers and farm chemicals based on the local industrial nature and market demands. By combining estimated risk occurrence frequencies at predicted traffic volume at sensitive road sections, the probabilities of pollution on the proposed roads in the four project city/counties were predicted as extremely low (Table V-23). The domestic EISs conclude that the risk of spills on the project roads and bridges is minor, and that adequate response procedures are in place to deal with the risk. The project city/counties have emergency preparedness and response mechanisms in place and have environment emergency response command offices within LEPBs. Environmental emergency response drills are carried out regularly in the city/counties.

255 The applicable PRC standards and regulations related to hazardous goods transportation on roads include the Standard for Hazardous Substances and Major Hazard Installations Discrimination (GBl8218-2000), Classification of Health Hazard Levels from Occupational Exposure to Toxic Substances (GB50844-85), and Rules of Transportation of Dangerous Goods by Automobile (JT3130-88). These include hazardous goods transport vehicles and equipment, packaging and logos, consignment and documentation, consignment acceptance and hand-over, transport, loading and unloading, storage and fire control, labor protection and medical emergency treatment, as well as supervision and management, etc. The TPG and the IAs provided assurance to ADB that above national standards will be strictly complied with. The local traffic management bureaus (LTMBs) and traffic police will (i) ensure that all trucks carrying hazardous materials are marked according to PRC norms; (ii) enforce traffic controls, and set speed limits for trucks carrying hazardous material; and (iii) prepare a rapid spill response and clean up protocol so that in the event of a spill the appropriate people and equipment are quickly notified and action can be taken.

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Table V-23: Predicted Spillage Accident Probability for Carriage of Dangerous Goods

Spot of Protection Sensitive Road Section Length of Predicted

Rd/bridge (m)

Spillage Accident Probability in Predicted Year

2019 2029 2039

Emin River Guihua Wu Road and Emin Briidge (Emin)

100 0.00011 0.00017 0.00025

Flood drainage channel Outer Ring Road (Tuoli) 50 0.00011 0.00017 0.00025

Tacheng Kalangguer River

No.1 Bridge (K9+4000 60 0.00015 0.0003 0.0004

No.2 Bridge (K15+600) 60 0.00009 0.0002 0.0002

No.3 Bridge (K21+000) 60 0.0005 0.00098 0.001

No. 4 Bridge (K23+120) 60 0.0005 0.00098 0.001

Source: domestic EISs

(2) Impacts during operation of the district heating sub-component

256 The district heating sub-component comprises the district heating supply pipeline and the HESs. Heat will be supplied by the planned CHP. The sub-component’s adverse environmental impacts during operation primarily include noise, and small volume of industrial and domestic wastewater and solid waste from the HESs.

257 Each HES, depending on its size, is expected to generate 30~45 m3/d of backwash effluent, which has a relatively low pH. An equalization and sedimentation tank of about 50m3 will be built in each HES for pH adjustment and sedimentation (SS≤400mg/L) before the backwash effluent is discharged into the municipal sewer. The sedimentation tanks will be regularly cleaned, and accumulated sludge and sediments disposed in the municipal landfill. Compliance monitoring for the backwash effluent will be conducted by the Tacheng EMS in accordance with the monitoring plan defined in the EMP (Table EMP-6).

258 Noise. The HESs will have a buffer distance of at least 20 m from the nearest household and will use low-noise water circulation pumps with noise levels controlled within 55 dB(A) at a distance of 1 m from the pump shields. There will be no operational noise impact from these HESs. But the heating company will be required to build or improve soundproof covers and walls to reduce noise if required; and to regularly maintain the circulating pumps and keep the equipment in good condition. Noise monitoring will be conducted by the Tacheng EMS in accordance with the monitoring plan defined in the EMP (Table EMP-6).

259 Wastewater and solid waste. Only a few workers will be kept at each HES and there will be no canteen on the premises. The quantities of wastewater and solid waste generated by the workers will be small, and wastewater will be discharged into the municipal sewer.

260 For occupational and community health and safety, the facility operator will: (i) conduct regular inspections of the district heating network and repair defects promptly; and (ii) comply with the PRC State Administration of Worker Safety Laws and Regulations.

261 The CHP plant will be operated and controlled by the China Power Investment Corporation. The TPPMO and the IA/PIU, with the support of the CS-ES, will review the environmental monitoring and compliance reports of the facility, confirm its compliance with national requirements, and provide suggestion for corrective actions if necessary. The review of the environmental monitoring and compliance reports will be reflected in the annual environment progress reports

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submitted to ADB.

262 Demolition of small boilers. According to the project TEIA of Tacheng City district heating subcomponent, and the draft EIA for the proposed CHP (March 2014), the use of waste heat from the CHP as main heat source will result in the deconstruction of about 30 small low-efficient boilers in 22 boiler houses and nearly 3,000 facility heating stoves city-wide, which will generate solid wastes and debris including ferrous waste, waste concrete, bricks, glass, rubble, and roofing materials, etc. Inappropriate disposal of deconstruction waste could impact soil, groundwater and surface water resources, and consequently public health. The risk of asbestos or asbestos containing material (ACM) in existing boilers is considered minimal, as according to the survey conducted by the EIA Institute, all boilers were installed after 2000, i.e. after PRC stopped using asbestos as insulation material (1993). Reuse/recycling of deconstruction wastes generated during demolition (e.g. iron, bricks, windows, doors, steel bars etc.), will be maximized. Non-recyclable demolition debris will be disposed in municipal solid waste landfills or special construction and demolition debris landfills subject to approval by TPEPB.

(3) Impacts during Operation of Kalangguer River Rehabilitation and Flood Control Component

263 The operation of the Kalangguer river rehabilitation component is not expected to generate major impacts. The mitigation measures during operation include proper maintenance of the riverside 20 m wide embankment protection belt, emergent aquatic plants and other vegetation; and regular inspection of the river embankment for stability issues. If signs of failure are discovered, a repair program will be implemented immediately. The river will also require periodic maintenance to remove garbage or excessive plant growth. Non-structural measures will be implemented to complete the flood risk management system of the city. An important requirement to ensure success of the project component in Tacheng City is the release of sufficient water to sustain healthy ecological conditions (minimum ecological flow) from the Kalangguer Reservoir (a facility linked to the project). These operational aspects are discussed below. The flood control works will have no significant impacts on downstream areas, in terms of water quality, quantity, and flood peaks (see discussion on induced impacts at the end of this chapter).

264 Periodic river channel maintenance. The flood flow capacity of the river may be impaired as a result of accumulation of debris, excessive vegetation, or the construction of illegal structures to provide either irrigation water, or create artificial water bodies for beautification purposes. The TPG confirmed (through loan covenant) that no artificial structures will be constructed to impound water restricting free flow of flood waters. This will also avoid increased evaporation of water from increased water surfaces. The Tacheng WRB will be responsible for the maintenance of the rehabilitated river. They will appoint sufficient personnel to regularly maintain the river, including removal of garbage and vegetation which may impair flood flow capacity.

265 Maintaining minimum ecological flow in Kalangguer River. The operating rules of the Kalangguer Reservoir should be reviewed to ensure that the river receives a minimum flow at all times. Current reservoir operating rules include a minimum flow provision37, but during drought periods the minimum flow release is discontinued. There may be some argument for reducing the minimum flow provision during periods of more severe drought if the reservoir storage is low, but it should not simply be discontinued. Minimum flows are required for maintaining water in the low

37

The minimum flow provision is 10% of the average annual flow, or 1.12 m3/s.

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flow channel downstream, not only for aesthetic reasons but for environmental and water quality purposes and to provide water for any riparian users downstream.

266 Flood monitoring and early warning. The flood monitoring and early warning system of Tacheng City will be upgraded to cover the existing and proposed urban development areas so that, when an over-standard flood is forecast, people at risk or with property at risk could be warned, take appropriate precautions to limit flood damage and be evacuated from the areas at risk of inundation if necessary. The system will consider safety of evacuation routes and locations of safe temporary refuge, among other matters. Even for floods below the design flood protection standard, the flood monitoring and forecasting system should be used to warn the community of approximate flood peak levels expected so that activities undertaken near the river banks can be suspended. Equipment will be purchased and installed to improve the existing monitoring and early warning system. Details on the scope of the flood monitoring and early warning system equipment are presented in Chapter III (Project Description). Essentially, the project will establish the following in Tacheng City: (i) flood warning coordination center; (ii) additional water/rainfall monitoring stations; (iii) establishment of real-time video monitoring systems; and (iv) establishment of wireless flood warning broadcasting system (voice, cell phone, FM signals, etc.).

267 Irrigation water demand for the revitalized riverside. The vegetated area along the river embankment is 36.42 ha. According to the FSR, the average irrigation demand indicator of 8,950 m3 per hectare and year for a duration of 9 months (or 290 days) are used for the calculation of irrigation water demand. The irrigation demand (from the Kalangguer River) is therefore 325,900 m3/a in the first three years after planting according to the FSR, which is only 0.27% of the total annual runoff of the river. After the first three years, the trees and bushes can grow naturally without irrigation in average and wet years.

F. Indirect, Induced and Cumulative Impacts

268 Induced development through roads and bridges under the infrastructure components. The expanded road networks in the four project city/counties will facilitate urban development with significant population increases. This will induce increases in traffic flows, pollution generation and demand for public services. All project roads and bridges as well as future traffic flows on these roads and bridges and their induced impacts have been examined in the context of relevant development plans. The project roads are in line with approved urban master plans and development control plans of the cities/counties, and will not induce uncontrolled development. These urban development master plans have been critically reviewed by the PPTA consultant and are considered appropriate and realistic. The description and assessment of these plans is included in the PPTA Final Report, disclosed on the project website. The proposed roads and bridges will address the inadequacy of the existing road networks. Air quality and noise impacts due to increased traffic flow have been assessed in this IEE and mitigation measures have been identified where necessary. Significant indirect or induced negative impacts from infrastructure components are not anticipated.

269 Induced pressure on auxiliary services. The installation of auxiliary utilities concurrent with road construction (water supply, wastewater collection) would induce potential impacts on the water supply system, and the WWTPs by increasing the demand on their services. Again, such increase has been fully considered in the urban master plans of the project city/counties, and reviewed in this IEE (Chapter III, Section H), confirming that water supply and wastewater treatment capacities will be adequate in the short, medium and long-term. Significant induced negative impacts are not expected. Improved MSW collection will result in increased MSW volumes to be disposed of properly, which could induce impact on the capacity of the landfills.

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Existing landfills have enough capacities to cope with increased waste collection rates (see Chapter III, Section H). With better MSW collection, transfer and disposal in the city, illegal dumping of garbage will be reduced, thus improving environmental and public health conditions. The induced impact is therefore positive.

270 Induced downstream effects of river works. The Kalangguer river rehabilitation and flood control component will improve flood control capacity of Tacheng City. The inundated area in the case of a 1-in-50 year flood will be reduced by approximately 1,200 ha. This will have a very minor incremental effect on downstream peak flow, which will be attenuated by an existing floodplain (downstream of the proposed river section which will be maintained). Thus, downstream impacts causes by the project component are not significant. Furthermore, downstream areas including the natural floodplain will be included in the flood monitoring and early warning system, to be upgraded under the project’s capacity building component.

271 Cumulative impacts. Cumulative effects are defined as the impacts on the environment that result from the incremental impact of an action when added to other past, present, and reasonably foreseeable future actions, regardless of the agency (central or non-central) or person undertaking such other actions. The active construction of multiple roads; wastewater collection, water supply and district heating pipelines; will cause a magnification of environmental and social impact in the project areas in terms of traffic on the existing road network, civil works, air-borne dust, waste generation and community disturbance. Construction related cumulative impacts will be effectively minimized by adopting proper mitigation measures, including: (i) coordination between all project components in terms of construction schedule, possible access road and borrow/disposal sites sharing. The construction of associated utilities (water, wastewater, heating) during road construction works will benefit from the concurrent earthworks for new roads, sharing trenches and construction equipment, without adding significantly to construction impacts; (ii) contractors will develop material transport plans and temporary traffic management plans with consultation of local road management authority and local community; (iii) enforcement of good construction management to minimize dust, noise and waste generation; (iv) training of construction workers to minimize social disturbance and cultural conflict; (vi) proper maintenance of the access roads and timely restoration/strengthening upon completion. With effective implementation of good construction management measures, these common construction-related cumulative impacts can be adequately mitigated to acceptable level. The GRM will enable potential APs to report any excessive disturbances during construction. With exception of greenhouse gas emissions discussed below, no significant cumulative impacts are anticipated during project operation.

G. Climate Change and Greenhouse Gas (GHG) Emissions

272 Estimated GHG emissions from transport infrastructure. According to the ADB Environment Safeguards - a Good Practice Sourcebook (2012), an EIA for a road project should determine if the project has the potential to emit GHGs at the rate greater than 100,000 t of CO2eq per year. If the traffic expressed as passenger car units per day (PCU/day) is below the numbers indicated in Table V-24 in a representative year, the emissions in that year are unlikely to exceed the 100,000 tons CO2e threshold (Table V-24). The good practice source book also explains that if the project has several stretches with different traffic flows, then the weighted average of traffic for the entire road will be calculated and compared against Table V-24.38

38

ADB. 2012. Environment Safeguards - a Good Practice Sourcebook (Paragraph 228, page 63).

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Table V-24: Maximum Number of PCU per Km to Trigger 100,000CO2eq/a

Length of Rd. (km) PCU/day Length of Rd. (km) PCU/day

5 85,50039

40 28,000 7 81,700 50 23,000 9 77,900 60 19,000 10 76,000 70 16,000 15 66,500 80 14,000 20 57,000 90 13,000 30 38,000 100 11,000

Source: ADB Environment Safeguards - a Good Practice Sourcebook (2012)

Table V-25: Predicted Traffic Flows in the Representative Years on the Proposed Roads

Road Length of Road Predicted traffic flow in year (puc/d)

2019 2029 2039

Tacheng City

Third Ring Road 3,867.31 6,648 12,489 18,329

Fifth Ring Road 2,678.44 5,492 12,420 19,347

Tiyuguan Xi Road 1,865.81 4,047 9,661 15,274

Chanye Yi Street 2,200 3,757 9,516 15,274

Chanye Nan San Road 1,800 5,202 11,766 18,329

Second Ring Road 3,462.55 4,436 11,695 18,953

Tianyuan Nan Road 2,032.22 4,436 9,725 15,858

Xixing Nan Road 2,032.22 2,535 7,293 12,051

Heshan Nan Road 2,032.22 2,324 6,958 11,592

Fourth Ring Road 2,184.31 3,169 8,677 14,184

Chanye Si Street 3,016.2 2,746 7,629 12,511

Hemei Road 1,656 3,757 9,516 15,274

Hemu Nan Road 620 2,324 6,707 11,089

Total 29,447.28 50,873 124,052 198,065

Weighted average traffic flow

4,532 10,367 14,682

Yumin

Longzhen Road 2,338 4,396 14,681 24,967

Honghua Road 1,168 2,204 7,383 12,562

Yujinxiang Road 953 3400 11,350 19,300

Total 4459 10,000 33,414 56,829

Weighted average traffic flow 3,609 12,057 20,506

Emin

Arxiate Road 3,224 3,732 12,129 20,526

Tuoli

Outer Ring Road 14,090 5,300 12,028 18,757

Note: 1car=1PCU, 1mid-size vehicle=1.5PCU, and 1 oversize vehicle=2PCU Source: domestic FSRs, EISs and PPTA Consultant

39

The numbers for 5km and 9km are calculated based on the table in ADB Environment Safeguards - a Good Practice Sourcebook

by mathematical extrapolation

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273 The total length of 13 proposed new roads in Tacheng City is 29.447 km, the predicted total traffic flows in the representative years of 2019, 2029 and 2039 are 50,878, 124,052 and 19,024 PCU/d respectively, while the weighted average predicted traffic flows are 4,532, 10,367 and 14,682 PCU/d, respectively, which are below the 38,000 PCU/d (for 30 km long road) traffic in Table V-24 for emitting 100,000 tons of CO2eq annually.

274 Similarly, the total length of the three new roads in Yumin is 4.456 km, the projected traffic flows in the representative years of 2019, 2029 and 2039 are 10,000, 33,414 and 56,828 PCU/d respectively, while the weighted average predicted traffic flows are 3,069, 12,129 and 20,526 PCU/d respectively, which are below the 85,500 PCU/d (for 5 km) traffic in Table V-24 for emitting 100,000 tons of CO2eq annually.

275 The length of Arxiate Road in Emin County is 3.224 km, the predicted traffic flows in the representative years of 2019, 2029 and 2039 are 3,732, 12,129 and 20,526 PCU/d respectively. The length of Outer Ring Road in Tuoli County is 14.096 km, the predicted traffic flows in the representative years of 2019, 2029 and 2039 are 5,300, 12,028 and 18,757 PCU/d respectively. The data for both roads are significantly below the reference data in Table V-23 for emitting 100,000 tons of CO2eq annually.

276 The production of the xxxMW of heat at the CHP required to service the project’s district heating network will use xxx t/a of raw coal (xxx t/a of standard coal) and produce xxx tCO2/a. These emissions to produce the heat to service the heating subproject are offset by the replacement of household stoves and heat-only boilers. Since the district heating subproject only uses a portion of the CHP’s heat output, and that the GHG emissions from this is totally offset by the fuel savings described above (to the point that there is a net reduction of GHG), monitoring need only be undertaken for three successive years. If the amount of GHG emissions remains constant or decreases monitoring may be discontinued.

277 Carbon Sequestration. The total proposed re-vegetated area, including both the infrastructure components in the four city/counties and Kalangguer River rehabilitation including riverside revitalization amounts to 85.65 ha trees and bushes. The tree and bush plantings comprise local species (Xinjiang white poplar, Silver birch, Siberian elm, Shrubs smartweed, etc.) while the grassland comprises mainly alpine meadow. The density of trees and bushes will be 1,612 trees and 2,580 bushes per ha; and the distance between the trees on roadsides are 5 m. In the PRC, the carbon sequestration capacity for regular forests is 0.3-12 tons C/ha.a). 40 Considering the harsh weather conditions (long and cold winter), the EIA institute and PPTA consultants estimated the total re-vegetated areas can achieve some 80 tons of carbon sequestration annually (references under Table V-26).

Table V-26: Preliminary Calculation of Carbon Sink from Reforestation and Landscaping (tons C/ha.a)

Component

Trees and Bushes

Area (ha) Capacity of Carbon Sink

(t/ha.a) Carbon Sequestration Potential

(t/a)

Tacheng River 36.42 0.90 32.87

Tacheng Road 23.37 0.90 21.09

Emin Road 6.04 0.90 5.45

Yumin Road 4.32 0.90 3.90

40

Carbon sequestration capacity comparison［EB/OL. (May 2011, http://www.carbontree.com.cn/ News showasp?bid=5725

http://www.carbontree.com.cn/

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Tuoli Road 15.50 0.90 13.99

Total 85.65 0.90 77.3

Source: Estimation by the EIA Institute and PPTA Consultants. Reference: Calculation of Carbon Sink from trees and bushes (0.9026 t/ha .a) was based on the paper: Yiyuan Yang, Yaqi Gao, October 2011, “Evaluation of Carbon Sink Benefits from Reforestation in Tacheng Prefecture” on

Management of Forestry Resource ( a National Class I publication).

H. Climate Change Projections, Adaptation to Future Climate Change Effects

278 Climate change projections in XUAR and Tacheng Prefecture were analyzed based on a review of scientific literature. Li et al41 applied the delta method, one of Bias Correction methods (downscaling method), to make horizontal resolution of 24 GCMs models’ monthly outputs into 0.5℃ for analyzing XUAR’s future climate pattern under three IPCC emission scenarios (A1B, A2 and B1). Based on the downscaled outputs for XUAR from GCMs, the following conclusions are drawn:

279 Annual mean temperature is projected to significantly increase in XUAR. The annual mean temperature will reach 10℃ 11.1℃ and 8.5℃ in A1B, A2 and B1 by the end of the 21st century, respectively (Figure V-4). Annual precipitation will experience an increasing trend with little fluctuation. However, there exists a large uncertainty within different emission scenarios with a range of 6℃ in annual temperature and about 200 mm in annual precipitation.

280 Climate change projections also differentiate at the regional level. Both annual mean temperature and annual precipitation are projected to increase significantly in northern and northwestern XUAR, where Tacheng Prefecture is located. Li Lanhai et al (2013) project an increase in annual precipitation of 18mm and 17mm in the Junggar Basin and Altay Region by the end of the 21st century, respectively (Figure V-5). Annual precipitation is projected to increase moderately in central XUAR, and little in the southern XUAR.

Figure V-4: The change of precipitation (left) and temperature (right) in XUAR with different emission scenarios (A1B, A2, B1). Source: Li Lanhai et al (2013).

41

Li Lanhai, Bai Lei, Yao Yanan, Yang Qung, Zhao Xin. 2013. Patterns of Climate Change in Xinjiang Projected by IPCC SRES. J. Resour.

Ecol. 4(1): 027-035.

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Figure V-5: Change of temperature and precipitation in Junggar Basin (left) and Altay Region (right) with different emission scenarios (A1B, A2, B1). Source: Li Lanhai et al (2013).

281 Adaptation to climate variability and change. The ADB’s CCF Implementation Guidelines’ specific criteria and scope for adaptation for urban development42 requires climate proofing of projects to ensure adequate resilience to changing climatic conditions (e.g., future extreme events, changes in rainfall patterns, changes in temperature and runoff). The Project components generally conform to these principles. The climate risk to the project considered medium. While the project outcome is not expected to be significantly affected by climate change over the lifespan of the project, some of the outputs might be moderately affected, as described below.

282 Urban flooding from rising temperatures and precipitation, causing early snow melt is a potential issue, and the Kalangguer River rehabilitation component is targeted at this phenomenon. It will construct and strengthen unstable embankments along the river (with a flood protection standard of once in 50 years), thus the city’s ability for flood control and protection will be significantly improved. However, the standard of flood protection provided by structural flood defenses will decline over time as a result of projected climate variability and change, and the project will help TPG prepare a strategy to adapt to that change that combines periodic assessment and review of the hydrology and the state of knowledge about climate change every 10 years, incremental upgrade of flood control facilities to restore the desired standard, and strong reliance on non-structural measures (such as the review and strengthening of measures flood monitoring and early warning systems, emergency preparedness and response plans, etc).

283 New and rehabilitated project roads in the project cities and counties has been aligned and designed to ensure that it will not be impacted by flooding, and it does not exacerbate flooding elsewhere by channeling or redirecting overland flows. Culverts will also be sized for a 1 in 100 year flood to ensure that flood drainage is uninterrupted. Improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme weather events that might result from future climate change. They will provide efficient and alternative routes for both emergency vehicles and escape. The project promotes separate wastewater and storm water systems, whereby stormwater runoff on project roads will not be discharged to the sewer system, but will be diverted to on-site infiltration systems. As a result, the impact on the wastewater collection and treatment system is expected to be minimal and within the planned capacity for the system. Specific climate risk mitigation measures are also included in the capacity

42 ADB 2008, Climate Change Fund: Implementation Guidelines, 5.

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building component under the loan. Capacity building will be provided to local Housing and Construction Bureaus and Traffic Management Bureaus (for transport infrastructure and municipal services) and Tacheng Water Resources Bureau (for the Kalangguer River) to properly monitor, supervise and maintain project facilities, including annual review of maintenance budget to account for potential increases in maintenance requirements resulting from climate change.

284 A summary of project features, by components and subcomponent, addressing GHG emission reduction and climate adaptation is shown in Table V-27 below.

Table V-27: Project Features Addressing Climate Change

Component /Subcomponent

Climate Change

GHG Emission Reduction Adaptation/Resilience

Transport Infrastructure and municipal services

Road pavement quality, curve radii, gradients, to reduce vehicle emission through fuel savings;

Design low carbon NMT and public transport facilities;

Installation of LED street lights;

Roadside water infiltration facilities for landscaping irrigation to reduce the demand on potable water, and avoid hydraulic overload of sewer system and WWTPs;

Road alignment and design avoiding disasters from extreme weather events (flood proofing, snowdrift protection)

Culverts and drainage structures designed for 1:100 yr flood (exceeding required standard);

Increased connectivity for disaster response;

Flood protection, riverfront revitalization

Atmospheric carbon absorbed and reduced (CO2 sequestration).

Flood channel rehabilitation to cope with early and rapid snow melt flow;

Flood monitoring and early warning system to cope with above standard floods;

Plantation species selection: wide environmental amplitude or planned successional growth;

Full canopy species to increase shade and moderate microclimate.

District Heating Co-generation of heating and power allows the use of spare heating capacity without the need to burn additional fossil fuels;

Replacement of small local heating boilers and domestic heating stoves.

Engineering standards and design avoiding disasters from extreme weather events;

Increased coverage of district heating, and more reliable heat source to cope with potentially increasing extreme temperatures.

Source: PPTA Consultant

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VI. ALTERNATIVE ANALYSIS

285 During the PPTA stage, various alternatives for each component were proposed, screened, and compared against technical, economic, social, and environmental criteria. The primary objective with respect to environmental criteria was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits. The range of alternatives considered depended on the infrastructure sectors and their characteristics, and the following key environmental and socio-economic factors were used in comparing the alternatives: (i) LAR impact; (ii) minimization of community disturbance; (iii) adaptation to local context (climatic constraints, Gobi desert earth, etc.); and (iv) potential impacts on surface water bodies. Many of the FSRs’ alternatives analyses were concerned with technical and engineering specifications. These include: surface materials, base course materials and cross section designs for roads and pipe laying techniques, pipe materials and pipe sizes for WWTP and heating. The discussion below focuses on those parts of the analysis of alternatives with potential for differential environmental effects.

A. Alternatives for Transport Infrastructure and Municipal Services

286 Road pavement alternatives. Two kinds of pavement materials for motor vehicle lanes and non-motor vehicle lanes were considered: asphalt concrete pavement and cement concrete pavement. Based on the traffic forecasts and the requirements of urban roads, in addition to other requirements like skid resistance, tire/road noise, durability, rutting and crack resistance, local material supplies, and hydro-geological conditions, asphalt concrete pavement was selected. This pavement is more cost-effective and will make the maintenance of underground utilities easier than that of cement concrete pavement. Asphalt concrete pavement is commonly used in the PRC. The correct grade of asphalt pavement will be specified during the detailed design to take into account the specific conditions in the project city/counties.

Table VI-1: Comparison of Asphalt Concrete and Cement Concrete Pavement

Item Asphalt Concrete (selected) Cement Concrete

Pavement performance Low noise, low vibration, low dazzle High noise, high vibration, high dazzle

Driving comfort High Low

Traffic disturbance during maintenance

Short time road closure Long time road closure

Design life 15 years 30 years

Maintenance Easy to maintain Difficult to maintain

Load capacity Average High

Investment Average High

Thermal stability Low High

Source: FSR and PPTA Consultants

287 Alternatives for street lighting. Two alternatives for street lighting, including high-pressure sodium lamps and light-emitting diode (LED) lighting were compared. Both can meet street lighting requirements, but LED light consumes significantly less power than high-pressure sodium lamps. According to the updated FSRs, LED lamps will be used on all the proposed roads to satisfy ADB’s and the PRC’s energy conservation and emission reduction policies. This has been flagged as loan assurance. The comparison of the alternatives for the street lighting is shown in Table VI-2.

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Table VI-2: Comparison of High-pressure Sodium and LED Lamps

Items High Pressure Sodium Light LED Street Light

Photometric performance Low Excellent

Radiator performance Low Excellent

Electric performance Electric Shock Easy (High voltage) Safe (Low voltage)

Working life Short (5,000 hours) Long (>50,000 hours)

Working voltage range Narrow (±7%) Wide (±20%)

Daily power consumption 6kWh 2KWh

CO2 emission (12 hours) 6kg 1.5kg

SO2 emission (12 hours) 0.2kg 0.08kg

Price CNY 900/lamp CNY3200/lamp

Startup speed Quite Slow (Over 10 minutes) Rapid (2 seconds)

Strobe Yes (Alternating current drive) No (Direct current drive)

Optical efficiency Low High

Color index / distinguish feature

Bad, Ra <50 (The color of object is faith, boring, hypnosis)

Good, Ra >75 (The color of object is fresh, veritable and comfortable)

Color temperature Quite Low (Yellow or amber , uncomfortable) Ideal Color Temperature (Comfortable)

Bad glare Strong Glare (Dazzle) No Harmful Glare

Light pollution Strong No

Heating Serious (>300°C) Cold Light (<60°C)

Lampshade turn dark Easy (Absorb dust) No (Static proof)

Lamp aging turn yellow In A Short Time No

Shockproof performance Bad (Fragile) Good (No filament nor glass)

Environment pollution Contains Lead Element Etc. No

Maintenance cost CNY200/lamp/year CNY 20/lamp/year

Product cubage Big Small (Slim appearance)

Product weight Heavy Light

Annual power saving 1,095 kWh

Source: DMX Technologies, 2012 and FSR

288 Road Alignment. The alignments of urban roads are based on rehabilitating or connecting existing roads and local topographic condition, and conform to the cities’ master plans, which were reviewed and considered appropriate. No alternative alignments were considered.

289 Alternatives for sewer pipe material. Two types of pipe materials were compared in the FSRs (Table VI-4), including high-density polyethylene (HDPE) double-wall corrugated pipe, and reinforced concrete pipe. The reinforced concrete pipe was adopted for the drainage pipe with a diameter of ≥500 mm due to lower cost. For the drainage pipes with a diameter < 500 mm, the HDPE double wall corrugated pipe was selected because of easy construction, less scale formation, better corrosion resistance, high rigidity and flexibility, and high resistance to shock and pressure.

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Table VI-3: Comparison of Sewer Pipe Material Alternatives

Item HDPE Double Wall Corrugated Pipe

Reinforced Concrete Pipe

Roughness Coefficient 0.009 0.013

Corrosion Resistance Good Medium

Quality of Pipe Works and Maintenance Cost

The hot melt is used for pipe connection, which quality is good and is not subject to damage. The quality of pipe installation is

guaranteed. The maintenance cost is relatively low.

The joint is subject to damage. Due to the fact that the unit pipe is short, the

impermeability is poor. The quality of whole works cannot be guaranteed. Maintenance

cost is relatively high.

Length of Unit Pipe ＞6 m 3-5m

Unit Price High Low

Weight 5% of reinforced concrete pipe Very heavy

Environmental Impact Good for groundwater due to less seepage

Leakages more likely, resulting in groundwater pollution

Service Life 60 years 60 years

Source: FSR and PPTA Consultants

290 Alternatives for water supply pipe material. Two types of pipe materials were compared in the FSRs (Table VI-4), including polyethylene (PE) plastic pipe, and nodular cast iron pipe. The nodular cast iron pipe was adopted for the water supply pipe with a diameter of >300 mm due to lower cost. For the combination property and the water supply pipes with a diameter ≤300 mm, the PE plastic pipe was selected.

Table VI-4: Comparison of Pipe Material Alternatives

Item Nodular cast iron pipe PE plastic pipe

Roughness Coefficient 0.012 0.009

Corrosion Resistance Good, but need anticorrosion for inside and outside

Good, don’t need any anticorrosion

Sealing performance Adopt the rubber ring to sealing, but which easy to aging deformation.

Adopt weld to sealing, sealing performance is good.

Length of Unit Pipe 4-6 m 6-12m

Unit Price High Low

Degree of safety High Medium

Service Life 50 years 50 years

Source: domestic FSR

291 Alternatives for Cross-section of Roads. Four types of road cross sections were considered (Table VI-5). Based on the city/counties‘ master plans, the characteristics of traffic flow and the road function, the appropriate type of cross section was selected for each road in the FSRs.

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Table VI-5: Comparison of Cross Section Alternatives

Cross Section

Characteristics Application

One Section

(i) There is no specific lane for non-motor vehicle (NMV) traffic which uses partial lane or sidewalk; (ii) There is no separation for the lanes going the opposite direction which causes interference and low traffic speed.

Secondary or branch road with low motor vehicle (MV) and NMV traffic

Two Sections

(i) There is no specific lane for NMV traffic which uses partial lane or sidewalk; (ii) The lanes going in the opposite direction are separated without interference, and the traffic speed of the inside lane is relatively high.

Secondary or main road with heavy MV and NMV traffic

Three Sections

(i) There is the dedicated lane for NMV which avoids interference between the MV and NMV traffic and pedestrian, and guarantees NMV traffic safety; however, there is a weakness for pedestrian crossing; (ii) There is no separation for the lanes going in opposite direction; however, the speed of MV traffic is high because of no interference between MV and NMV traffic.

Secondary road with continuous heavy NMV traffic flow; or main road with rapid growth of pedestrian and NMV traffic

Four Sections

(i) There is the specific lane for NMV traffic which avoids interference between the MV and NMV traffic flow and pedestrian, and the safety of NMV traffic is guaranteed; however, there are significant difficulties for the crossing; (ii) The lanes going in opposite direction are separated without interference, and the traffic speed is relatively high.

Main road with heavy MV and NMV traffics

Source: FSRs

292 Taking the roads under Tacheng Infrastructure Component as an example, a four section type cross-section was selected for the urban main roads of Third Ring Road, Fifth Ring Road and Hemei Road, while three and two sections were selected for the secondary and branch roads. The same principle was adopted for the design of Emin, Yumin and Tuoli road cross-sections. (Figure VI-1 & 2, and Table VI-7)

Figure VI-1: Option I (selected)

Figure VI-2: Option II (alternative)

Table VI-6: Comparison of two cross-sections of the Third Ring Road

Option Advantage Disadvantage

Option I

i) Six lanes two direction urban main road. The MV, NMV and sidewalk lanes are completely separated, benefit to traffic safety; and

ii) Build an 8-m wide green median, benefit to traffic safety and landscape.

i) Narrow NMV lanes and sidewalks

Option II i) Four lanes two directions urban main road. The MV and NMV lanes are

completely separated; ii) Wider MV lanes and sidewalk

i) Lower traffic capacity

Source: the domestic FSR

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293 Bridge design alternatives. In Tacheng, three bridge structures were compared in the FSR for the Kalangguer River rehabilitation component, which will include four bridges with a 60-m span: pre-stressed concrete simply supported box girder; pre-stressed reinforced concrete hollow slab, and pre-stressed reinforced simply supported T beam. In aspects of construction techniques, cost and using effect, the pre-stressed rein-forced concrete hollow slab was selected for these bridges. Bridge sub-structure is designed as column piers and capping beam abutment. Foundation is designed as friction piles. The superstructure layout is 3-20m hollow slab, and the total bridge length including abutment is 67 meters.

294 In Emin, the planned 5th Road will cross Emin River, where a 100m bridge is designed. Three bridge types were compared in the FSR, including: suspension bridge, cable-stayed bridge, and pre-stressed concrete simply-supported box girder bridge. After comparison, pre-stressed concrete simply-supported box girder bridge, was selected. This type of bridge is easy to construct and maintain, and the cost is also much lower than other complicated bridges. Cross section setting is designed as: 2.0m (side walk and handrail) +11.0m (driveway) + 11.0m (driveway) + 2.0m (side walk and handrail) =26.0m.

B. Alternatives for Tacheng District Heating Sub-Component

295 Heat Source. Currently, there are three types of heat source normally used for urban central heating in the PRC: Combined heat and power (CHP), large-scale fossil fuel boilers, and renewable energy options. Potential sources of renewable energy in this area include solar power and wind power. Another renewable energy source is biomass fuel, substituting coal. These are further discussed and evaluated below.

296 Wind, solar energy. To utilize the solar or wind energy for space heating, the generated electricity has to be converted to heat under the current heating system or switch to use electric air conditioning. Cost of heat generation by electricity is high and wind or solar photovoltaic power alone cannot guarantee to provide reliable heat supply due to output fluctuation associated with wind and solar photovoltaic. Therefore, the heat source requires additional base load or back up heat sources such as coal, natural gas, heat pump, or electricity storage system, which does not make the district heating economically viable.

297 Biomass. Biomass fuel is available in XUAR as the region is an important agricultural production base in the PRC, and its use as energy source is being promoted by the XUAR government. However, there are some barriers in promoting biomass-based heating or cogeneration systems in the region: (i) lack of formal system in biomass feedstock production, collection, and distribution; (ii) relatively higher investment cost due to custom-made boiler, (iii) still higher fuel cost compared to coal, and (iv) unreliable fuel supply, especially during the non-harvest season.

298 Combined heat and power plant, heat-only boilers. With no viable renewable source able to provide the heat energy for Tacheng, the two options compared in the FSR were (i) CHP and (ii) large-scale fossil fuel boilers. In practice currently, CHP is often used for large-scale district heating, supplying both power and heating in winter. Large-scale boilers are used mainly for areas that cannot be serviced by CHP. CHP is defined as the simultaneous production of electrical power and heat in a single process. It is based on the principle that, in a plant dedicated to electricity production alone, only a portion of the primary fuel energy is actually converted into electrical power, ranging typically around 33%. The remaining part is lost in the form of heat dissipated to the environment. Cogeneration allows increasing the conversion efficiency of the primary fuel energy by means of heat recovery for heating. In other terms, CHP grants significant energy saving in

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comparison with separate production of electricity (in a traditional power station) and heat (in a traditional district heating boiler house). Because the CHP makes extensive use of the heat produced during electricity generation, it can achieve overall maximum efficiencies of 87%. The high efficiency achieved by using the CHP has significant environmental benefits - specifically for GHG emission reduction. In addition, due to efficient pollutant control equipment to be used in the CHP plant, the emissions of dust, NOx and SO2 from the CHP plant are much less than from existing coal-fed boilers. The CHP plant will also reduce land use, capital investment and operation cost of the district heating system, which will minimize social and financial risks. As a result, the CHP was selected as heat source for the Tacheng district heating sub-component.

299 Pipe-laying alternatives. Three pipe-laying methods were considered in the FSR: above ground, buried in a utility tunnel, and buried directly underground. The above-ground method was eliminated because it would have taken up more land and would have had an adverse visual impact. Compared to insulation properties of a standard pipe buried in a trench, directly burying and laying method has more advantages, including: (i) over 30% lower construction cost; (ii) saving energy and reducing approximately 15 – 20% of heat loss compare with above ground method; (iii) good anticorrosive and insulated performance; iv) long service life; (iv) less land occupation during construction; and. (v) faster construction. Thus, the direct burying method was selected for the Tacheng district heating subcomponent.

C. Alternatives for Tacheng Kalangguer River Rehabilitation Component

300 River dike alignment, embankment type. The requirements of the urban master plan and the landscape design are that the river dike lines will follow the layout of the natural river banks – so there was no analysis of alternative dike alignments. The FSR undertook an alternatives comparison of embankment dike types. The FSR compared a retaining wall scheme with a scheme combining low embankment and slope (combination scheme). From a comparison of floods, the flood water levels for the retaining wall scheme at various flood return periods (up to one-in-50 years) were higher than those for the combination scheme. For increased flood safety therefore, the combination scheme is more favorable. Additionally, the combination scheme (of embankment and slope) lends itself better to landscaping and recreational/beautification use.

Table VI-7: Comparison of river embankment types Type of embankment type Advantages Disadvantages

Retaining wall type • Cross section structure is simple, easy to control quality of construction;

• Easy to use local materials; • Less land acquisition required.

• River cross-section for flow smaller, flood water level higher;

• Low ability to adapt to changes in foundation;

• Appear dull, poor effect on landscape;

• Community safety issue (barriers required).

Combination of low embankment and vegetated slope

• River cross-section for flow larger, flood water level lower;

• High ability to adapt to changes in foundation, easy to construct;

• Appearance natural and beautiful, good effect on landscape;

• Cost lower.

• Higher land acquisition requirements;

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301 Other alternatives considered were: (i) forms of retaining wall; and (ii) choice of materials. All these comparisons focused on engineering and technical considerations, without significant environmental differences between alternatives.

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VII. PUBLIC CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE

A. Legislative Framework

302 Meaningful participation and consultation during the evaluation of project planning, feasibility study, design and implementation are an important safeguards requirement. Relevant provisions in the Environmental Protection Law of the PRC and the Regulations on the Administration of Construction Project Environmental Protection (Order of the State Council, No. 253) require that an EIS report prepared by a certified EIA Institute shall be in accordance with relevant laws to solicit the opinions of organizations concerned and residents within and nearby the project sites. The PRC National Development and Reform Commission (NDRC) issued a new requirement for “Social Risk Assessment of Large Investment Projects” in August 2012, which emphasizes the importance of public consultation in an effective manner, and requires that the results of public consultation are clearly summarized in the EIS report, including the dates of consultations, number of stakeholders, who the affected people (AP) are, and the comments received, etc.

303 ADB’s SPS also requires meaningful public participation, consultation and information disclosure. The consultation process for this project therefore followed both the PRC laws and regulations and ADB’s SPS. Key activities and results are presented in the following sections.

B. Information Disclosure

304 Two rounds of information disclosure for each project component were conducted by the EIA Institute, which are summarized in Table VII-1 and illustrated in Figure VII-1.

305 The first round of information disclosure was carried out during the early stage of EIS and TEIA preparation, of which the content mainly included description of project scope, site locations, contact details of the LPMOs, PIUs the EIA Institute and local EPBs, major procedures and scope of the EISs and TEIAs, and main aspects and approaches for public consultation.

306 The second round of information disclosure was undertaken after the preparation of draft final FSRs and EISs and TEIAs to solicit public comments and suggestions on the preliminary findings of the FSRs and EISs/TEIAs, including the potential impacts identified, proposed mitigation measures, as well as the arrangement of environmental management during both project construction and operation. During information disclosure, the EIA Institute also communicated with villages, companies/organizations within or nearby project sites to collect preliminary public opinions for each of the project components.

Table VII-1: Summary of Information disclosure

Component 1

st Information Disclosure 2

nd Information Disclosure

Date Media Posted Date Media Posted

Infrastructure Components of

Tacheng, Emin, Yumin

and Tuoli.

28 Nov. 2013

Posted on Tacheng Prefecture Government’s website: http://www.xjtc.gov.cn/shishihudong/gonggaogongshi/38396/

6 Jun. 2014

Posted on Tacheng Prefecture Government’s website: http://www.xjtc.gov.cn/info/1189/55421.htm

Tacheng River Rehabilitation

9 Apr. 2014

Posted on Tacheng Prefecture Government’s website: http://www.xjtc.gov.cn/shishihudong/gonggaogongshi/38396/

4 Jul. 2014

Posted on Tacheng Prefecture Government’s website: http://www.xjtc.gov.cn/info/1189/57265.htm

http://www.xjtc.gov.cn/shishihudong/gonggaogongshi/38396/

http://www.xjtc.gov.cn/shishihudong/gonggaogongshi/38396/

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Webpage of 1st

Information Disclosure for Infra & Municipal Service Components of Tacheng, Emin,

Yumin and Tuoli

Webpage of 2nd

Information Disclosure for Infra & Municipal Service Components of Tacheng, Emin,

Yumin and Tuoli

Webpage of 1st

Information Disclosure for Tacheng River Rehabilitation Component

Webpage of 2nd

Information Disclosure for Tacheng River Rehabilitation Component

Figure VII-1: Project information disclosed on the website of Tacheng Prefecture

C. First Round of Consultation

(a) Infrastructure Components of Tacheng, Emin, Yumin and Tuoli

307 In total, for the infrastructure and municipal service components in the four project city/counties, two thousand one hundred and eighty (2,180) questionnaires, including 2,115 potentially affected people (APs) and 65 related units, were distributed by the EIA Institute, and 2,054 questionnaires (94.2% of the total distributed) were completed and returned, in which there are 38 project-affected units and 2,016 APs and beneficiaries from different age groups, gender, educational backgrounds and occupations (Table VII-2). The survey result is summarized in Table VII-2.

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Table VII-2: Respondents of 1st Round of Questionnaire Survey – Infrastructure Components

Information of Consulted APs

Tacheng Emin Yumin Tuoli

23-25 Dec. 2013 11-14 Dec. 2013 11-14 Dec. 2013 23-25 Dec. 2013

No. of Resp.

Percent (%)

No. of Resp.

Percent. (%)

No. of Resp.

Percent. (%)

No. of Resp.

Percent. (%)

Gender Distribution

Male 371 75% 233 43 224 46.8 211 42.2

Female 125 25% 309 57 255 53.2 289 57.8

Age Group

<30 32 6.5% 168 31 152 31.7 180 36

30-40 83 16.8% 225 41.5 196 40.9 178 35.6

40-50 201 40.8% 116 21.4 108 22.5 108 21.6

≥50 176 35.7% 33 6.1 23 4.8 34 6.8

Education

Above college

341 68.2% 347 64.0 298 62.2 341 0

Middle school

114 22.8% 156 28.8 136 28.4 114 0

Primary School or

Below 45 9% 39 7.2 45 9.4 45 98.3

Ethnicity

Han (majority)

446 89.2% 421 77.7 398 83.1 303 60.6%

Kazakh (Minority)

- - 67 7.6 67 14.0 184 36.8%

Hui (Minority)

33 6.6% - - 11 2.3 18 3.6%

Uyghur (Minority)

18 3.6% 41 12.4 - - - -

Others (Minority)

3 0.6% 22 22 3 0.6 10 2.0%

Consulted unit (CU) 3 CUs: (i)Tacheng Forestry Bureau, (ii) Tacheng Customs, and (iii) Tacheng Huaguan Shipper Company

5 CUs: (i) Jiaodong Village; (ii) Emin DRC, (iii) Emin No. 1 middle school; (iv) the maternal & child health hospital; and (v) the Municipal Facilities Supervision Brigade

4 CU: (i) No.1 Primary School; (ii) Yumin Kindergarten , (iii) the maternal & child health hospital; and (iv) Yumin Procuratorate

24 CUs: (i) Birth control Office; (ii) Agriculture Bureau; (iii) Finance Bureau; (iv) Social-housing Office; (v) Ethnic & Religious Office; (vi) EPB; (vii) Party School; (viii) Land & Resource Bureau; (ix) Municipal Supervision Brigade; (x) Veterinary Station; (xi) Poverty Relief Office; (xii) No2 Residential community; (xiii) Housing & Construction Bureau; (xiv) Safety supervision Bureau; (xv) Transport Bureau; (xvi) Supervision Bureau; (xvii) Grass Land Bureau; (xviii) Sanitation Bureau; (xix) Forestry Bureau; (xx) Tax Bureau; (xxi) Health Bureau; (xxii) Food Company, (xxiii) DRC; and (xxiv) Municipal Supervision Brigade

Source: EISs and TEIAs

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Table VII-3: Results of 1st Round of Questionnaire Survey –Infrastructure Components of Tacheng, E’min, Yumin and Tuoli

No. Question Option

Tacheng Emin Yumin Tuoli

No. of Resp. (492 in Total)

Percent. (%)

No. of Resp. (542 in Total)

Percent. (%) No. of Resp. (479 in total)

Percent. (%)

No. of Resp. (500 in total)

Percent. (%)

1 Is there any rare fauna and flora that need to be protected in the project site?

Yes 0 0 15 2.8 6 1.2 0 0

No 492 100 527 97.2 473 98.8 500 100

Don’t know 0 0 0 0 0 0 0 0

2 Is there any cultural relic that needs to be protected in the project site?

Yes 0 0 0 0 6 1.2 0 0

No 492 100 542 100 473 98.8 500 100

Don’t know 0 0 0 0 0 0 0 0

3 What do you think about the existing environmental situation of project site?

Excellent 0 0 29 5.3 44 9 0 0

Good 492 100 5 1.0 296 61.8 376 75.2

Fair 0 0 342 63.1 121 25.3 115 23

Poor 0 0 166 30.6 18 3.9 9 1.8

4 What do you think about the impact on the project site by implementation of the project?

Will aggravate 0 0 36 6.6 18 3.9 130 26

Will improve 0 0 495 91.4 350 73 164 32.8

No impact 492 100 11 2 111 23.1 206 41.2

5 Do you think the environmental issues defined in the EIS are complete?

Yes 492 100 509 94 449 93.7 480 96

No 0 0 33 6 28 6.3 0 0

Don’t know 0 0 0 0 0 0 20 4

6 What do you think about the mitigation measures proposed?43

Reasonable 492 100 539 99 453 94.6 489 97.8

Unreasonable 0 0 2 1 22 4.6 0 0

Don’t know 0 0 1 0 4 0.8 11 2.2

7 What negative impacts are most likely during project implementation?

Air pollution 123 25 17 3.1 29 6.0 31 6.2

Wastewater 25 5.1 3 0.6 7 1.5 2 0.4

Solid wastes 344 69.9 522 96.3 443 92.5 467 93.4

8 What is your attitude towards the project?

Support 492 100 541 99.8 464 96.8 434 86.8

Indifference 0 0 1 0.2 15 3.2 61 12.2

Don’t support 0 0 0 0 0 0 5 1.0

Source: EIS Reports

43

As defined in a 4-pages summary of the project, covering project scope, construction methods, major impacts and mitigation measures, disclosed in Nov. 2013 on the website of Tacheng

Prefecture.

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308 Consultation result. For the four infrastructure components, 87% to 100% of the consulted APs, and 100% of the consulted units support the project, and believe that the project will improve the local socio-economic development, promote sustainable urbanization and enhance residents’ living conditions. 97% to 100% of the consulted APs and 100% of consulted units are of view that there are no rare or protected species within the project areas, and APs and consulted units expressed that there are no cultural relics within the project impact scope. 95% to 100% of consulted APs and 100% of consulted units believed the mitigation measures proposed in the draft EISs/TEIAs are adequate. Most consulted APs and units expressed that if the mitigation measures are properly implemented, the project will not have significant impacts on the environment. The five (1%) consulted APs in Tuoli who didn’t support the project, argued that improvements to the water supply system were more urgent than road construction and should thus be prioritized.

309 The following suggestions were provided by the respondents of both consulted APs and units: (i) increase landscaping areas along the proposed roads; (ii) sound construction planning should be conducted to avoid repeated excavation of underground pipelines; (iii) undertaking water spraying on construction sites to minimize dust generated by construction activities; (iv) timely disposal of construction waste with necessary covering; (v) protecting and improving existing vegetation along roads to reduce noise during road operation; (vi) the construction wastes should be disposed to the spoil sites to avoid uncontrolled dumping; (vii) taking measures to avoid river pollution during bridge construction; and (viii) guarantee pedestrian, residents and bicycle travel safety during both construction and operation. All these considerations and comments have been included as mitigation and management measures in the updated FSRs and the EISs, as well as the project IEE.

(b) Tacheng River Rehabilitation Component (first round)

310 Sixty (60) questionnaires were distributed by the EIA Institute on 9 April 2014. The questionnaires were distributed to fifty (50) APs from different age groups, gender and education backgrounds, and to ten (10) institutions. All 50 questionnaires of APs and 9 questionnaires of the units were completed and returned (Table VII-4). The consultation results are shown in Table VII-5.

Table VII-4: Respondents of 1st

Round of Questionnaire Survey – Tacheng River Component

Basic Information of APs Surveyed No. of

Respondents Percentage (%)

50 consulted APs

Gender Distribution

Male 36 72

Female 14 28

Age Group

<30 2 4

30-40 12 24

40-50 20 40

>50 16 32

Education

Above college 6 12

Middle school 1 2

Primary School or Below 43 86

Ethnicity

Han (majority) 36 72

Hui (Minority) 4 8

Daur (Minority) 9 18

Others 1 2

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9 institutions

i)Tacheng Municipal Justice Bureau, ii) the United Front Work Department, iii) Discipline Inspection Commission, iv) the Municipal Government Office, v) the Political and Legislative Affairs Committee, vi) the Disabled Persons Federation, vii) the Bureau of Government Administration; viii) the Food Bureau, and ix) Economic and Information Bureau.

Source: The EIS Report of Tacheng River Rehabilitation Component

Table VII-5: Results for Questionnaire Survey - Tacheng River Component

No. Question Option No. of

Respondents (50 APs in Total)

Percent. (%)

No. of Respondents (9 Units in Total)

Percent. (%)

1 Do you know the project component?

Yes 50 100 8 90

No 0 0 1 10

2 Do you support the construction of the project?

Support 50 100 9 100

Not support 0 0 0 0

Indifference 0 0 0 0

3 Whether the project is beneficial to local social economy?

Very Favorable 50 100 9 100

Favorable 0 0 0 0

Not conducive 0 0 0 0.0

Do not know 0 0 0 0.0

4

What do you think about the noise and vibration impact levels during construction?

Significant impact 0 0 0 0

Moderate impact 1 2 3 33

Limited impact 37 74 4 45

Don’t know 12 24 2 22

5 What do you think about the air pollution impact level during construction?




Don’t know 13 26 1 10

6

What do you think about the surface water pollution impact level during construction?




Don’t know 13 26 1 10

7

What is the major environmental concern during the project construction?

Air 0 0 3 33

Water 0 0 4 45

Solid waste 36 72 4 45

Noise 14 28 0 0

8 After the project completion, the local environment will be:

Improved 38 76 7 80

No Change 0 0 1 10

Degraded 0 0 0 0

Do not know 12 24 1 10

9

What is the major positive impact after the project?

Water environment 24 48 5 58

Vegetation 12 24 4 45

Groundwater 6 12 0 0

Living condition 8 16 5 58

10 What is your attitude towards the project?

Support 36 72 9 100

Not support 0 0 0 0

Indifference 14 28 0 0

Source: The EIS Report of Tacheng River Rehabilitation Component

311 The first round of survey result shows that 100% of the consulted persons and institutions

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support the project, and 100% of the respondents believe that the project will support socio-economic development and improve the local environment, scenery and flood control capacity. 74% of consulted persons and 45%-68% of consulted institutions think that impacts will be limited as long as the mitigation measures proposed in the EIS and EMP are strictly implemented.

312 The main concerns and suggestions provided by the respondents include: (i) environmentally friendly river rehabilitation methods should be conducted; (ii) pay more attention to residents’ safety and properties during construction, including farmland nearby the river; (iii) pay attention to riverside landscaping design and construction, which should be in harmony with the surrounding natural environment and scenery; (iv) timely disposal of construction wastes and rubbish from workers’ camps with necessary covering; (v) strictly control the construction quality during the river embankment; (vi) undertaking water spraying to minimize dust impact; (vii) protecting existing trees and vegetation along the river; and (viii) river and landscaping should be properly preserved and maintained after the construction completion. All these comments have been included as mitigation and management measures in the updated FSR, EIS, IEE and EMP.

Figure VII-2: Pictures of the First Round of Questionnaire Survey, Tacheng River Rehabilitation

D. Second Round of Consultation

313 A second round of public consultation was conducted through a public consultation meetings and questionnaires surveys after the meeting. The consultation meeting was held in the conference room of Tacheng prefecture DRC on 19 May 2014, organized by the EIA Institute together with TPPMO. In total 39 people participated in the meeting including community representatives, project-related governmental organizations, the DI and IAs of four project city/counties (Figure VII-3), to communicate on the findings from the draft FSRs and domestic EISs, the additional

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findings of the PPTA consultant, and to receive additional public feedback. The results of the second round of consultation were also used to discuss the proposed GRM, ensuring that the APs are aware of the existence of the GRM process for the implementation of the project components and agree with its structure. The meetings were also used to present the main anticipated impacts and the proposed mitigation measures as defined in the updated FSRs and the EISs. In addition, 220 questionnaires were distributed to potentially AP in the four project cities, and 215 were returned. The second round of consultation is summarized in Table VII-6.

Figure VII-3: Consultation Meeting in Tacheng Prefecture DRC, 19 May 2014

314 Results of the second round of public consultation: 78% to 100% of the APs and stakeholders support the project, and nobody raised any objection to the project. They believe the project will significantly improve the local socio-economic and ecological environment, and improve the residents’ living condition. The main opinions and concerns collected during the second round of consultation are as follows: (i) all people knew the scope of the Project, and supported the Project; (ii) people surveyed were satisfied with the mitigation measures proposed to address the anticipated adverse environmental impacts; (iii) some project beneficiaries (benefiting from water supply, wastewater and MSW facilities) were concerned about the potential tariff increases; and (iv) most of the residents who will be affected by the roads expressed their concern regarding resettlement and hoped that their future living standards would be improved. These concerns have been considered in the resettlement plans.

315 After the public consultations, all the concerns and suggestions were summarized and provided to the design and EIA institutes. In turn, these concerns and suggestions, as well as corresponding mitigation measures, have been fully taken into account and incorporated in the latest FSRs, EISs and EMP.

E. Consultation, participation and information disclosure during project implementation

316 Future plans for public involvement during the design, construction, and operation phases were developed during PPTA and are defined in the EMP (Table EMP-9). Affected people will be consulted and informed through site visits and informal interviews by the PIUs (through their

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environmental management unit), with support of the CS-ES. Public meetings will be organized by the LPMOs and PIUs in the project city/towns prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. The CS-ES will, prior to project completion report, organize surveys in the project city/town to assess community satisfaction with project implementation, project outputs, and EMP implementation performance. The results will be documented in the project completion report (PCR).

317 The project’s environmental information will be disclosed by the local EPBs and ADB as follows: (i) the project IEE is disclosed at www.adb.org; (ii) the Chinese EISs and TEIAs were disclosed on the website of the Tacheng Prefecture Environmental Protection Department (TPEPD); and (iii) the annual environment monitoring reports will be disclosed at www.adb.org.

http://www.adb.org/

http://www.adb.org/

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Table VII-6: Summary of 2nd

Round of Public Consultation

Project Component

No. of Participants

Gender Race Education Age Support

the Project Indifference

Not Support

the Project

Tacheng Road

50 • Male: 30 (60%) • Female: 20 (40%)

• Han: 36 (72%) • Hui: 3, (6%) • Kazak: 3(6%) • Uygur: 1 (2%) • Others: 7 (14%)

• College and above: 11 (22%)

• Vocational school and senior high school: 36 (72%)

• Junior High school: 1 (2%) • Primary school: 2 (4%)

• <30:16 (32%) • 30-40: 19 (38%) • 40-50: 14 (2*) • >50: 1 (2%)

39 (78%) 11 (22%) 0

Tacheng River

Rehabilitation 40

• Male: 29 (72.5%) • Female: 11

(27.5%)

• Han: 28 (70%) • Uygur: 1 (2.5%) • Others: 11 (27.5%)

• College and above: 0 (0%) • Vocational school and

senior high school: 3 (7.5%)

• Junior High school: 1 (2.5%)

• Primary school: 36 (90%)

• <30: 4 (10%) • 30-40: 12 (30%) • 40-50: 11 (27.5%) • >50: 13m(32.5%)

40 (100%) 0 0

Tuoli 50 • Male: 25 (50%) • Female: 25 (25%)

• Han: 12 (24%) • Hui: 3 (6%) • Kazak: 30 (60%) • Others: 5 (10%)




• <30: 11 (22%) • 30-40: 20 (40%) • 40-50: 13 (26%) • >50: 6 (12%)

48 (96%) 2 (4%) 0

Yumin 25 • Male: 12 (48%) • Female: 13 (52%)

• Han: 20 (80%) • Hui: 2 (8%) • Kazak: 3 (12%)




• <30: 14 (56%) • 30-40: 4 (16%) • 40-50: 7 (28%) • >50: 0 (0%)

25 (100%) 0 0

Emin 50 • Male: 28 (56%) • Female: 22 (44%)

• Han: 48 (96%) • Hui: 1 (2%) • Kazak: 1 (2%)



• Junior High school: 1 (2%)

• <30: 16 (32%) • 30-40: 16 (32%) • 40-50: 13 (26%) • >50: 5 (10%)

48 (96%) 2 (4%) 0

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• Primary school: 2 (4%)

Source: the EIS Reports

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VIII. GRIEVANCE REDRESS MECHANISM (GRM)

318 A grievance redress mechanism (GRM) has been defined environmental, health and safety concerns and grievances (see EMP, Section H). In consultation with the TPPMO, the LPMOs, the IAs, the PIUs, it was agreed that one GRM will established to address community concerns and complaints. The GRM will be coordinated by the TPPMO, with GRM access points at local level (contractors, PIUs, and IAs). Grievances will most likely include disturbance of traffic; dust emissions; construction noise; inappropriate disposal of construction wastes; damage to private houses; safety measures for the protection of the public and construction workers; or surface water quality deterioration during bridge construction and Tacheng Kalangguer River rehabilitation and flood control works. The GRM will be accessible to diverse members of the community, including more vulnerable groups such as women, minority and poor.

319 The TPPMO will establish a Project Public Complaint Unit (PPCU), which will be coordinated by the TPPMO-SO. The PPCU will instruct contractors, CSCs and the PIUs if people complain about specific project activities. The PPCU will coordinate with the concerned local EPB and other government divisions, if necessary, and will be supported by the CS-ES. The PPCU will establish a GRM tracking and documentation system, including procedures to retrieve data for reporting purposes to the TPPMO and ADB.

320 The contact persons for different GRM entry points, such as contractors, PIUs, local EPB, PPCU, etc., will be identified prior to construction. The contact details for the entry points (phone numbers, addresses, e-mail addresses) will be publicly disclosed on information boards at construction sites. The Step-by-Step GRM procedure is described in Section H of the EMP. The chart of the GRM is shown in Figure EMP-1.

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IX. ENVIRONMENTAL MANAGEMENT PLAN

321 An environmental management plan (EMP) has been prepared for the project during the PPTA, which is presented in Appendix EMP of this IEE. The development of the EMP drew on the domestic EISs and TEIAs prepared by the EIA Institute, discussions with the TPPMO, the LPMOs, PIUs and IAs of project city/counties, and consultations with the Tacheng Prefecture EPB and the LEPBs, as well as other relevant government divisions and local communities.

322 The EMP defines, amongst others, the responsibilities for environmental management and supervision during the various stages of implementation of the project. TPG (through the TPPMO) and the project cities (through the LPMOs and PIUs) will assume overall responsibility for implementing, supervising, monitoring and reporting on the EMP. Their capacity to implement the EMP, as well as the capacity of the project implementing and operating agencies to manage project facilities, will be strengthened through capacity building and training activities defined in the EMP. TPPMO and the PIUs will appoint qualified staff to coordinate and monitor EMP implementation. These will be supported by environment management specialists contracted under the project management consultancy package.

323 The TPPMO will have the overall responsibility delegated by Tacheng Prefecture DRC for supervising the implementation of the EMP, coordinating the environment grievance redress mechanism (GRM) and reporting to ADB. The TPPMO will assign one safeguards officer (TPPMO-SO) in charge to supervise the effective implementation of the EMP.

324 Each PIU will establish an environmental management unit (EMU) which will take charge of (i) coordinating the implementation of the EMP and developing implementation details; (ii) supervising the implementation of mitigation measures during project construction and operation (the PIU will hire construction supervision companies, CSCs); (iii) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management plans; (iv) organizing periodic environmental monitoring in compliance with the approved monitoring plan (Table EMP-6/7); (v) submitting quarterly semiannual EMP progress reports to the TPPMO for consolidation and submission to ADB; (vi) act as local entry points to the GRM; and (vii) responding to any unforeseen adverse impact beyond those mentioned in the domestic EISs and TEIAs, the project IEE and the EMP.

325 Environment Specialist under Project Management Consulting Services (CS-ES). Environment specialists will be hired under the project management consulting services (CS-ES). The CS-ES will advise the TPPMO, LPMOs, PIUs, contractors and CSCs on all aspects of environmental management and monitoring for the project. The CS-ES will (i) assist in updating the EMP and environmental monitoring program, as needed; (ii) supervise the implementation of the mitigation measures specified in the EMP; (iii) on behalf of the EA, prepare the annual environment monitoring reports in English and submit them to ADB; (iv) provide training to the TPPMO, LPMOs, PIUs, CSCs, and contractors on the PRC’s environmental laws, regulations and policies, ADB SPS, World Bank Environmental, Health and Safety (EHS) Guideline, EMP implementation, and GRM in accordance with the training plan defined in Table EMP-9; (v) identify any environment-related implementation issues, and propose necessary corrective actions. The CS-ES will also provide support to LPMOs and PIUs in organizing public meetings in the project city/towns prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. Prior to project completion report, the CS-ES will organize surveys in the project city/town to assess community

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satisfaction with project implementation, project outputs, and EMP implementation performance, and document the results in the project completion report (PCR).

326 Construction Contractors, Construction Supervision Companies (CSCs). Construction contractors will be responsible for implementing relevant mitigation measures during construction under the supervision of the CSCs and PIUs. Contractors will develop site-specific EMPs based on the project EMP. CSCs will be contracted by the PIUs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC will assign one engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports submitted to the PIUs.

327 Environmental Monitoring Stations (EMS). The PIUs will contract the local environment monitoring stations at project city/county level to conduct periodic environmental quality monitoring during construction and operation in accordance with the monitoring plan (Table EMP-6/7).

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X. CONCLUSION

A. Safeguard categorization, due diligence

328 The proposed project will support sustainable urban development of Tacheng City and the towns of Emin, Tuoli and Yumin in Xinjiang Uygur Autonomous Region, the People’s Republic of China (PRC). The main objective of the project is to support the project cities and towns upgrading their urban infrastructures, municipal services and urban living environment.

329 The Project was classified as category B for environment safeguards, which triggered the need to prepare this initial environmental examination (IEE) in compliance with ADB's Safeguard Policy Statement (2009). The IEE consolidates findings of five environmental impact statements (EIS) and six tabular environment impact assessments (TEIA) prepared for all project components by a licensed institute in compliance with the PRC Law on Environmental Impact Assessment (2003), the Technical Guidelines for Environmental Impact Assessment (HJ/T2-93) and other relevant PRC regulations and guidelines. All domestic EISs and TEIAs have been submitted to the Tacheng Prefecture Environment Protection Bureau (TPEPB) for review and approval, which were granted in August and September 2014.

B. Environment, health and safety benefits

330 The project will have significant environment, health, and safety benefits. The project will facilitate environmentally sustainable urban infrastructure development by improving urban road linkages and related facilities by rehabilitating and upgrading urban roads and street alleys, constructing urban roads and bridges, improving water supply and sewer coverage, installing energy-efficient LED street lighting, and expanding public green areas. The project will improve public transport services and implement road safety and traffic management initiatives. Key environment benefits are highlighted here:

331 People-centered transport facilities. All new roads will be developed with safe and adequately wide footpaths as well as fully segregated non-motorized lanes where possible. Traffic safety will be promoted through adequate design of the roadway itself (including key interventions such as appropriate street lighting, safe roadway alignments, adequate shoulders, signage, roadway markings, and protective barriers in vulnerable areas). Project design has emphasized investments in public transport facilities, including the installation of 28 weather-protected public bus stations along project roads in Tacheng, Emin and Yumin. The use of LED street lights will result in energy savings over 2.43 million KWh per year with an estimated CO2eq emission reduction of 2,420 t/a as compared to conventional street lighting.

332 Flood control and river revitalization. In Tacheng City, the Project will construct and rehabilitate unstable river embankments along 15.2-km of the Kalangguer River, significantly improving the city’s ability for flood control and protection. Consequently, damages of floods to houses, facilities and goods, as well as farm lands and crops, will be prevented and/or mitigated. The most direct benefit of the Project will be that the flooding of an estimated 1,200 ha area will be avoided should a 1-in-50-year flood occur. The revitalization of the Kalangguer riverfront will include a 15m band of trees along both sides to improve visual appearance, and carbon sink to offset city vehicle emissions. The 167,000 trees will cover some 36 ha, which are expected to sequester some 33 tons of CO2 per year.

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333 District heating. With project support, the Tacheng Municipal Government will commission new district heating distribution capacity to supply existing a new service areas. The planned combined heat and power plan (CHP) will use its waste heat to provide hot water to the district heating system. The proposed development will substantially improve energy efficiency and service quality, expand district heating coverage by 3.65 million m2, and ultimately lead to emission reductions resulting from the shift in heat source.

334 Solid waste. The project will support upgrading the existing collection system to enhance collection efficiency and meet environmental compliance, building new collection stations to serve expanded urban area, and piloting sorting and recycling scheme in three communities in Tacheng. It’s estimated that about 103.2 t/d of solid waste will be collected and disposed in Tacheng City after implementation of the project.

335 Surface water pollution abatement. The infrastructure development components in Tacheng City and Emin County will construct 56.871 km sewer pipeline, with the service population of 170,200. The estimated amount of domestic wastewater to be collected is about 39,800 m3/d. This wastewater will be delivered to the existing municipal WWTPs, where it will be treated to Class-1B Standard prior to discharge.

336 Climate adaptation. The project conforms to the principles of the Bellagio Declaration on sustainable transportation and climate change, which recommends that adaptation strategies, at a minimum, contain the following aspects: (i) a long-term perspective (building climate resilient infrastructure); (ii) requirements for fixing and adapting what already exists (such as road rehabilitation and maintenance in Emin County), (iii) recognition of the need to respond to climate emergencies (such as an emergency preparedness approach for floods). The transport infrastructure components with improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme weather events that might result from future climate change. They will provide efficient and alternative routes for both emergency vehicles and escape.

C. Impacts, environmental management plan (EMP)

337 Anticipated impacts. Construction and operation of project facilities do have potential impacts to the environment in the four project cities and counties. Project construction will require significant earthwork that will temporarily increase soil erosion. Dust and noise generated by road construction activities will be a nuisance to nearby residents, especially for road and alley rehabilitation works in Tacheng, Emin and Yumin. Discharge of wastewater from construction sites could potentially pollute surface water in the project’s area of influence. Works on the Kalangguer riverbanks could stir up the sediment, releasing suspended solids and nutrients into the water column affecting water quality and ecology. During operation, traffic travelling on the project roads will generate air and noise pollution, potentially affecting nearby sensitive receptors. Operation of heat exchange stations in Tacheng could generate noise impacts.

338 Environmental Management Plan (EMP). The IEE predicts that these impacts will be localized, and that they can be mitigated through the implementation of the environmental management plan (EMP), which is annexed and forms part of the Project Administration Manual (PAM). The EMP defines mitigation measures, monitoring requirements, and institutional responsibilities to ensure proper environmental management throughout the project construction and operation. The responsibilities for environmental management and supervision during the various stages of implementation of the project are defined in the EMP. TPG (through the TPPMO)

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and the project cities (through the LPMOs and PIUs) will assume overall responsibility for implementing, supervising, monitoring and reporting on the EMP. Their capacity to implement the EMP, as well as the capacity of the project implementing and operating agencies to manage project facilities, will be strengthened through capacity building and training activities defined in the EMP. TPPMO and the PIUs will appoint qualified staff to coordinate and monitor EMP implementation. These will be supported by environment management specialists contracted under the project management consultancy package.

D. Consultation, grievance redress mechanism (GRM)

339 Meaningful consultation for each subproject has been conducted during feasibility study and domestic environmental impact assessments in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB’s Safeguard Policy Statement (2009). Public concerns have been adequately addressed and to the extent possible integrated into project design. Consultant and public participation will continue throughout project implementation. A public consultation and communication plan has been defined in the environmental management plan. Affected people will be consulted and informed through site visits and informal interviews by the PIUs (through their environmental management unit), with support of the CS-ES. Public meetings will be organized by the LPMOs and PIUs in the project city/towns prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. The CS-ES will, prior to project completion report, organize surveys in the project city/town to assess community satisfaction with project implementation, project outputs, and EMP implementation performance. The results will be documented in the project completion report (PCR). The project’s environmental information will be disclosed by the local EPBs and ADB as follows: (i) the project IEE is disclosed at www.adb.org; (ii) the Chinese EISs and TEIAs were disclosed on the website of the Tacheng Prefecture Environmental Protection Department (TPEPD); and (iii) the annual environment monitoring reports will be disclosed at www.adb.org.

340 Environment safeguards related grievances may occur during construction and operation of the project. TPPMO will establish an environmental GRM with local GRMs established at project city level and coordinated by the PIUs, which will follow the procedure and timeframe defined in the EMP. XPMO and ADB will be informed on, and involved in, the grievance resolution process. The CS-ES will provide training on the GRM to ensure that responsibilities and procedures are clear.

E. Project Risks and Assurances

341 Project risks were assessed during the PPTA. The majority of environmental risks relate to design features and operational plans, which will avoid or mitigate impacts but rely on the commitment and capacity to implement and consistently follow-up of the TPPMO, the PIUs, LPMOs, CSCs and contractors. The remaining relate to the likelihood of unexpected negative impacts. More specifically, the main project risks include: (i) low institutional capacity for environmental management and the possibility that the TPPMO, the PIUs, and contractors will fail to monitor the environmental impact and implement the EMP during the project implementation; (ii) unforeseen land acquisition and resettlement issues, which could constrain the efficient implementation of the project works and restoration of livelihoods of the APs; (iii) inadequate construction site management, resulting in occupational and community health and safety concerns; and (iv) delays in the completion of the CHP, which will supply waste heat to the project’s district heating system.

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342 Measures have been identified to address the project risks: (i) appointment of an environmental specialist under the consultancy services (CS-ES) and other experts in environmental management and monitoring, river rehabilitation, restoration and maintenance, transport safety, and training/awareness raising; (ii) clear definition of roles and responsibilities for EMP implementation, performance indicators, and mechanisms for feedback and adjustment; and (iii) a comprehensive capacity building and training component with strong focus on EMP implementation and supervision, and urban transport safety and river pollution control. With regard to the potential delay in CHP construction, the Tacheng Prefecture Government and the regional DRC have provided commitment letters confirming the government’s full support and commitment to the CHP. The existing heat-only boilers with a total capacity of 650 MW are able to supply expected heat demand until 2019. A delay beyond 2019 is highly unlikely.

343 Project Assurances. Key legal assurances were agreed upon at LFF stage and will be acted upon by the respective levels of governments to ensure sound project design and effective implementation of the EMP:

344 Pre-construction readiness: TPG shall ensure that the PMO implements the following measures prior to commencing construction to ensure the Project’s environment management readiness: (i) appoint a qualified environment officer within the PMO, (ii) recruit at least one environment specialist as part of the loan administration consultant services, (iii) ensure that all Project Implementing Agencies and Project Implementing Units have contractual agreements with county environment monitoring stations (EMS) to conduct the environmental impact monitoring described in the EMP and that all EMS are qualified centers which are part of county-level or higher environment protection bureaus; and (iv) ensure that the EMS provide their monitoring results to the PMO as well as to the Project Implementing Agencies and Project Implementing Units not less than quarterly. Before and during any Project construction, TPG shall ensure that the PMO organizes and conducts training on implementation and supervision of the project EMP for appropriate officers of the relevant Project Implementing Agency or Project Implementing Unit and all of its Project contractors.

345 Construction: TPG shall, and shall cause each Project Implementing Agency and Project Implementing Unit to, ensure that (a) borrow and spoil as well as construction waste generated in Project construction activities is properly disposed of in disposal sites selected and managed in accordance with the EMP and in consultation with relevant environmental protection authorities and in conformity with all applicable PRC and provincial, municipal and local laws, regulations and standards; (b) all Project construction activities avoid interruptions or damage to water supply, wastewater collection, heating and other utility services.

346 District Heating (Power Plant): TPG shall ensure that construction commences on the combined heat and power plant [2x350 MW, located in Tacheng City submitted by China Power Investment Corporation to National Development and Reform Commission (NDRC) for approval in 2014] within one year following its approval by NDRC and will endeavor to ensure that construction is completed and normal operations have commenced at the plant by 2019.

347 Public transport, NMT: TPG shall, and shall cause each Project Implementing Agency to, ensure that in accordance with the project feasibility study, (a) 28 weather-protected public bus stations along project roads in Tacheng, Emin and Yumin are constructed; (b) pedestrian; bicycle and non-motorized traffic facilities are properly designed and constructed.

348 Traffic safety: TPG shall, and shall cause each Project Implementing Agency to, ensure

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that all relevant agencies cooperate to promote traffic safety provisions for the road components of the Project, including by providing adequate traffic safety signage, signal lamps, traffic control facilities and other necessary facilities. TPG shall, and shall cause each Project Implementing Agency to, ensure that traffic safety education activities are conducted in the languages appropriate to the local population to enhance the traffic safety awareness of the local people.

349 Vehicle emission control: TPG shall, and shall cause each Project Implementing Agency to, ensure that periodic examinations of emissions of vehicle exhaust pollutants for each vehicle registered or operating in the respective Project Implementing Agency’s jurisdiction are conducted in accordance with all applicable PRC and provincial, municipal and local laws, regulations and standards, and that vehicles whose emissions exceed regulatory limits are not registered and not otherwise permitted to operate within the Project Implementing Agencies’ jurisdictions.

350 River rehabilitation: TPG shall cause TCMG and TCWRB to ensure (i) that no artificial water impoundments are constructed along the 15.2-km section of the Kalangguer River that is supported by the Project, such as weirs, rubber dams or other forms of artificial water impoundment; (ii) that the flood monitoring, early warning and response system for Tacheng Municipality is reviewed and strengthened to ADB’s satisfaction prior to issuance of ADB’s Project Completion Report; (iv) that the operating procedures of the Kalangguer Reservoir are reviewed and adjusted as necessary to ensure that the Kalangguer River receives a minimum flow at all times in accordance with the reservoir operating rule on minimum flow as set forth in the environment impact assessment approved for the Kalangguer Reservoir in 2002.

351 Revitalized riverfront, irrigation water: TPG shall cause TCMG and TCWRB to ensure that (i) no alien and/or invasive species are introduced for forestation and landscaping works along the Kalangguer River; (ii) actual water use for irrigation of the Kalangguer embankment works is monitored and reported in the Project’s annual environmental monitoring reports to ADB and in the Project completion report.

352 Linked facilities: TPG shall, and shall cause the Project Implementing Agencies to, ensure that all facilities linked with the Project facilities are operated, maintained and monitored in strict conformity with all applicable PRC and provincial, municipal and local laws, regulations and standards including (i) the combined heat and power plant in Tacheng Municipality; (ii) water treatment plants in Tacheng Municipality and Emin County; (iii) wastewater treatment plants in Tacheng Municipality and Emin County; (iv) the sanitary landfill in Tacheng Municipality; and (v) the Kalangguer Reservoir in Tacheng Municipality.

353 O&M: TPG shall, and shall cause each Project Implementing Agency and Project Implementing Unit to, ensure that all works under the Project shall be inspected, operated and maintained in accordance with all standards, specifications and regulations of the PRC and applying sound practices. TPG shall, and shall cause each Project Implementing Agency and Project Implementing Unit to, ensure that each agency responsible for operating and/or maintaining any Project facilities (a) prepares (i) a sustainable O&M plan; and (ii) an annual O&M budget for such Project facilities; and (b) provides sufficient financial and staffing resources to implement the O&M plan.

354 Public Awareness: TPG shall cause the Implementing Agencies to undertake public awareness campaigns on the Project and its benefits, including but not limited to information related to the EMP, the RP, the Gender Action Plan and the Social Development Action Plan, to be conducted through information disclosure, education and consultation, in both the local dialect and

145

Mandarin.

F. Overall Conclusion

355 Overall, the project’s potential environmental impacts are expected to be acceptable if all measures defined in the EMP are strictly implemented, and the environmental management and institutional capacity of TPPMO, the LPMOs, IAs, contractors and CSCs are strengthened through implementation of the training program in the EMP. Category B for environment is confirmed. No further surveys or studies are required as long as there are no major changes in the type and location of project facilities and activities proposed. The project is feasible from an environment safeguard point of view.

Attachment 1 –EMP

EMP-1

Attachment 1 - Environmental Management Plan (DRAFT)

PRC: Xinjiang Tacheng Border City and Counties

Development Project

TABLE OF CONTENTS

A. OBJECTIVES ..................................................................................................................................... 2

B. ORGANIZATIONS AND THEIR RESPONSIBILITIES FOR EMP IMPLEMENTATION ........................................ 2

C. POTENTIAL IMPACTS AND MITIGATION MEASURES .............................................................................. 5

D. ENVIRONMENTAL MONITORING, INSPECTION AND REPORTING ........................................................... 23

E. TRAINING ........................................................................................................................................ 29

F. PUBLIC CONSULTATION ................................................................................................................... 30

G. MECHANISMS FOR FEEDBACK AND ADJUSTMENT .............................................................................. 31


line


line


line



Attachment 1 –EMP

EMP-2

A. Objectives

1. This Environmental Management Plan (EMP) was prepared for the proposed Xinjiang Tacheng Border City and Counties Development Project (the project) in conjunction with the domestic Environmental Impact Assessment (EIA) Institute1, the design institute2 and Tacheng Prefecture Project Management Office (TPPMO) based on the five domestic EIS reports, six tabular EIA reports, the feasibility study reports (FSRs), and the Water & Soil Conservation Plan for Tacheng municipality component, as well as the master plans of four project city/counties, and other project documents. The EMP covers all project implementation phases, including design & pre-construction, construction, and operation.

2. The EMP defines appropriate mitigation measures for the anticipated environmental impacts, and defines the institutional responsibilities and mechanisms to monitor and ensure the compliance with PRC’s environmental laws, standards and regulations, and ADB’s SPS. The EMP specifies (i) objectives; (ii) implementing organization and responsibilities; (iii) mitigation measures; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (v) future public consultation; and (vi) a feedback and adjustment mechanism.

3. In the design stage the TPPMO will pass the EMP to the design institute for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, as needed. To ensure that bidders will respond to the EMP’s provisions in their proposals/tendering documents, the TPPMO, the local PMOs (LPMO) and the project implementation units (PIUs) will prepare and provide the following specification clauses for incorporation into all the bidding documents: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals, (ii) environmental clauses for contractual terms and conditions, and (iii) component EISs and tabular EIAs, and project IEE including updated EMP for compliance.

B. Organizations and Their Responsibilities for Implementation of Project and EMP

4. Tacheng Prefecture Government (TPG) is the executive agency (EA) of the project. At the prefecture level, TPG has established the Tacheng Prefecture Project Leading Group (TPPLG) to provide policy guidance and coordination, and has also established TPPMO to manage, supervise and coordinate overall project implementation. The four project city/county governments (Tacheng, Emin, Tuoli and Yumin) are the implementing agencies (IAs), and they have already established LPMOs to manage and coordinate overall implementation of the project components on behalf of respective IAs in their respective city/counties. The PIUs have been also set up for physical implementation of their project components and subcomponents. The EMP implementation arrangements and responsibilities of the governmental organizations are summarized in Table EMP-1.

Table EMP-1: Institutional Responsibilities for EMP implementation

No. Agency Environmental Management Roles and Responsibilities

1 Executing Agency (EA) – Tacheng Prefecture Government (TPG)

Overall policy and direction control. Responsible for project coordination with four project city/county governments, liaison with ADB and XUAR government agencies, financial management and administration.

1 Xinjiang Branch of Shenyang Municipal Engineering Design and Research Institute

2 Xinjiang Branch of China Academy of eco-geography Science

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ch, First line: -49.8 ch, Don't adjust space

between Latin and Asian text

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Attachment 1 –EMP

EMP-3


2 Tacheng Prefecture Project Leading Group (TPPLG)

Headed by the Vice Governor and consisting of TPDRC, TPEPB, TPHCD, TPFB, and governments of the four project city/counties, responsible for: • Provide overall project direction and any required policy

guidance; • Oversee the preparation and implementation of the project; • Provide overall guidance to the project; • Support cross-agency policy dialogue; and • Review project progress and provide strategic advice to

support effective project implementation. 3 Tacheng Prefecture Project

Management Office (TPPMO) Responsible for day-to-day operation of the project on behalf of the EA, responsible for supervision and overall management to ensure smooth implementation of the Project: • Responsible for all day-to-day management work during

the project preparation and implementation periods; • Assign one staff as the safeguard officer (PMO-SO), in

charge to supervise the effective implementation of the EMP;

• Establishment of a prefecture level Grievance Redress Mechanism (GRM) with a Project Complaints Coordinating Unit (PCCU);;

• Communicate and coordinate with ADB for project management and implementation; and report the project implementation progress and compliance monitoring results to ADB;

• Submit bidding documents, bid evaluation reports and other necessary documentations to ADB for necessary approval;

• Procurement of project management consulting services (PMCS), including an environmental specialist (CS-ES) to assist in supervision, tracking and reporting on EMP implementation of all subprojects; and

• Consolidate environmental monitoring reports prepared by PIUs and local environmental monitoring stations (EMSs) in periodic environment monitoring reports in a format acceptable to ADB, and submit them to ADB for disclosure.

4 Implementing Agencies (IAs) –Governments of project city/counties

Primarily responsible for project implementation for project components in their jurisdiction, including finance and administration, technical and procurement matters, monitoring and evaluation, and safeguard compliance.

5 Local Project Management Offices (LPMOs), established under IAs

3

They are the agencies on behalf of the IAs, responsible for supervision and coordination of their project components during the project implementation periods: • Supervise the PIUs for proper management of the project

component and subcomponents during the project implementation;

• Communicate and coordinate with TPPMO and other government agencies for project management and implementation;

• On behalf of the IAs, submit bidding documents, bid evaluation reports and other necessary documentations to TPPMO and ADB for necessary approval;

• Submit required annual audit reports and financial statements of project accounting to TPPMO and ADB.

3 The LPMOs of Tacheng, Emin, Tuoli and Yumin were established under the local DRCs.

Attachment 1 –EMP

EMP-4


6 Project Implementing Units (PIU)

4

They are the agencies for day-to-day operation of the project under the supervision of the LPMOs, responsible for ensuring successful implementation of their own project components and subcomponents: • Establishment of environment management units (EMU), in

charge to supervise the effective implementation of the EMP;

• Contracting of local environmental monitoring station (EMS) to conduct environmental compliance monitoring (air, water and noise);

• Incorporation of EMP clauses into bidding documents (with support of bidding agency and CS-ES);

• Tendering contractors and equipment with assistance of the international tendering agency and CS-ES;

• Supervision and monitoring of the EMP implementation and reporting to the LPMOs and TPPMO (with support of CS-ES);

• Administer and monitor contractors and suppliers’ performance;

• Contracting of construction supervision companies (CSC) to conduct daily environmental inspection and supervision and;

• Participation in capacity building and training programs. 7 Operators of Project Facility:

(i) Tacheng Municipal Facility Management Bureau; (ii) E’min HCB; (iii) Tuoli HCB; and (iv) Yumin HCB

Ensuring successful ongoing operation and maintenance of the relevant project components: • Commissioning of the constructed facilities; and • O&M of completed facilities, including environmental

management, monitoring and reporting responsibilities.

Source: Project Administration Manual (PAM), August 2014

5. The TPPMO will have the overall responsibility delegated by Tacheng Prefecture DRC for supervising the implementation of the EMP, coordinating the environment grievance redress mechanism (GRM) and reporting to ADB. The TTPMO will assign one safeguards officer (TPPMO-SO) in charge to supervise the effective implementation of the EMP.

6. Environment staff within TPPMO, LPMOs and PIUs. TPPMO is responsible for overall management of project preparation and implementation activities, coordinate implementation of environmental safeguards issues, inspect and monitor project progress and project impacts, and facilitate the communication and coordination with ADB. For environment safeguards, TPPMO will have the overall responsibility delegated by the EA for supervising the implementation of the EMP, establish a prefecture level GRM (PPCU) for coordinating and supervising the 6 PPCUs established in the PIUs and reporting to ADB. TPPMO will assign one safeguards officer (PMO-SO) and one environmental supervisor (PMO-ES) in charge to supervise the effective implementation of the EMP.

7. The LPMOs will supervise and coordinate implementation of the project components in their respective jurisdictions. Their main functions are: (1) supervise the PIUs for proper management of the project component and subcomponents; (ii) communicate and coordinate with TPPMO and other government agencies for project management; (iii) on behalf of the IAs, submit documents to TPPMO and ADB for necessary approval, including bidding documents,

4 There are three PIUs in Tachen City, the PIU for implementation of roads, bridges, water supply, sewer, district

heating, Baktu equipment and MSW improvement in Liaota District is Tacheng DRC; the PIU for implementation of Kalangguer River Rehabilitation Component is Tacheng Municipal WRB, and the PIU to implement alley rehabilitation and MSW improvement in the existing urban area is municipal Housing and Construction Bureaus (HCB); the PIUs for the components of Emin, Tuoli and Yumin are local HCBs.


Attachment 1 –EMP

EMP-5

bid evaluation reports, annual audit reports and financial statements of project accounting, environmental monitoring reports and other necessary documentations.

8. Each PIU will establish an environmental management unit (EMU) which will take charge of: (i) coordinating the implementation of the EMP and developing implementation details; (ii) supervising the implementation of mitigation measures during project construction and operation (the PIU will hire construction supervision companies, CSCs); (iii) ensuring that environmental management, monitoring, and mitigation measures are incorporated into bidding documents, construction contracts and operation management plans; (iv) organizing periodic environmental monitoring in compliance with the approved monitoring plan (Table EMP-7 and Table EMP-8); (v) submitting quarterly EMP progress reports to the LPMOs and TPPMO for consolidation and submission to ADB; (vi) act as local entry points to the GRM; and (vii) responding to any unforeseen adverse impact beyond those mentioned in the domestic EISs and TEIAs, the project IEE and the EMP.

9. Environment Specialist under Project Management Consulting Services (CS-ES). Environment specialists will be hired under the project management consulting services (CS-ES). The CS-ES will advise the TPPMO, LPMOs, PIUs, contractors and CSCs on all aspects of environmental management and monitoring for the project. The CS-ES will (i) assist in updating the EMP and environmental monitoring program, as needed; (ii) supervise the implementation of the mitigation measures specified in the EMP; (iii) on behalf of the EA, prepare the annual environment monitoring reports in English and submit them to ADB; (iv) provide training to the TPPMO, LPMOs, PIUs, CSCs, and contractors on the PRC’s environmental laws, regulations and policies, ADB SPS, World Bank Environmental, Health and Safety (EHS) Guideline, EMP implementation, and GRM in accordance with the training plan defined in Table EMP-9; (v) identify any environment-related implementation issues, and propose necessary corrective actions. The CS-ES will also provide support to LPMOs and PIUs in organizing public meetings in the project city/towns prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. Prior to project completion report, the CS-ES will organize surveys in the project city/town to assess community satisfaction with project implementation, project outputs, and EMP implementation performance, and document the results in the project completion report (PCR).

10. Construction Contractors, Construction Supervision Companies (CSCs). Construction contractors will be responsible for implementing relevant mitigation measures during construction under the supervision of the CSCs and PIUs. Contractors will develop site-specific EMPs based on the project EMP. CSCs will be contracted by the PIUs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC will assign one engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports submitted to the PIUs.

11. Environmental Monitoring Stations (EMS). The PIUs will contract the local environment monitoring stations at project city/county level to conduct periodic environmental quality monitoring during construction and operation in accordance with the monitoring plan (Table EMP-7 and EMP-8).

C. Potential Impacts and Mitigation Measures

12. Table EMP-2 to EMP-4 list the anticipated impacts and issues of the project components in the project city/counties during design and pre-construction, construction and operation phases as identified in the domestic EISs, tabular EIAs and the this IEE, as well as corresponding mitigation measures defined to minimize those impacts. The mitigation





Attachment 1 –EMP

EMP-6

measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, which will mainly be implemented by design institutes (during detailed design) and contractors (during construction), under the supervision of CSCs and PIUs, with technical support from the CS-ES. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved or adjusted.

Attachment 1 –EMP

EMP-7

Table EMP-2: Potential Impacts and Mitigation Measures during Preconstruction and Construction Phases

Item Potential

Impacts and Issues

Mitigation Measures and/or Safeguards

Responsibility Budget of Component (10,000 CNY) Source of

Funds Who

Implements Who

Supervise

Tacheng E’min Infra

Tuoli. Infra

Yumin Infra Infra. River

A. Design & Preconstruction Phases

Detail design

stage

(1) Design low carbon urban infrastructure and municipal service facilities including LED street lighting, bus stations, NMT and pedestrian facilities;;

(2) Design roads with curbside stormwater collection and local infiltration system;

(3) Design the environmentally friendly river rehabilitation component;

(4) Design MSW management facilities in Tacheng City with 3 R principal.

DI LPMOs,

TPPMO,

PIUs

Included in the design contracts

Institutional strengthening for EMP Implementation & supervision

(5) Each PIU to establish an EMU ; ;

(6) TPPMO to engage CS-ES and PMO-SO;

(7) LPMO to engage IA-ES; and

(8) Provide training to all environmental staff for EMP implementation and supervision.

LPMOs,

PIUs,

TPPMO

ADB,

TPEPB

- - - - - Counterpart funds (EA, IAs, PIUs)

Updating EMP (9) Update mitigation measures defined in this EMP based on final detailed design, as needed, submit to ADB for appraisal and disclosure;

(10) In case of major change of project location (or additional physical component) that may cause substantial environmental impacts or involve additional affected people, IAs and/or PIUs should contract an EIA institute to conduct additional environmental assessment and also public consultation. The revised EIA reports should be submitted to relevant EPB and ADB for approval and disclosure. To determine whether the change is minor or major, TPPMO should consult with ADB.

PIUs, EMUs,

TPPMO-SO

LEPBs,

ADB,

CS-ES,

TPPMO

- - - - - Counterpart funds (IAs, PIUs)

Formatted: Space Before: 0.2 line, After:

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Attachment 1 –EMP

EMP-8

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


Confirmation of

land acquisition

and

resettlement

(11) Update LARP after detail design DIs, PIUs LBCA5;

LBLM6

- - - - Included in resettlement budget

Construction

Preparation

Environmental

monitoring

stations

(12) Prior to construction, engage EMS7.

(13) Prepare a detailed environmental monitoring plan in accordance to monitoring plan defined in this EMP, to be agreed upon at loan inception stage, and reflected in the first environment monitoring report.

PIUs, EMSs TPPMO,

ADB,

CS-ES

15 10 4 2 2 Counterpart funds (PIUs)

Bidding and

contract

documents

(14) Prepare environment section in the terms of reference for bidders;

(15) Prepare environmental contract clauses for contractors, namely the special conditions (e.g., reference to EMP and monitoring plan).

DIs, LPMOs, PIUs

CS-ES, TPPMO

- - - - Included in detail design and PMCS contracts

EMP8 training (16) PMCS , CS-ES, or invited environment specialists and/or officials from the XUAR EPD and Tacheng Prefecture EPB provide training on construction environmental management and implementation and supervision of environmental mitigation measures to contractors and CSCs, in accordance with tentative training plan defined in this EMP.

PMCS, CS-ES

TPPMO, LPMOs,

ADB

3.0 2.0 1.5 1.5 1.0 Included in the PMCS budget

Establish

operational

GRM

(17) Establish a Project Public Complaints Unit (PPCU) at TPPMO; provide training for PPCU members and GRM access points;

(18) Disclose the PPCU’s phone number, fax, address, and email to the public on City EPB’s website and on information boards at each construction site.

TPPMO, LPMOs,

PIUs

TPPMO, CS-ES,

ADB

- - - - Included in TPPMO’s operation budget

5 Local Bureau of Civil Affairs

6 Local Bureau of Land Management

7 Local Environmental Monitoring Station, which is the only licensed environmental monitoring units

8 Environmental management






Attachment 1 –EMP

EMP-9

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


Land acquisition

and

resettlement

(before

construction)

(19) Establish a resettlement office comprising local government officials to manage the land acquisition and resettlement process;

(20) Conduct information dissemination and community consultation programs in accordance with the PRC Land Administration Law (1999) and ADB SPS; and

(21) Ensure that all resettlement activities are reasonably completed before construction starts on any component.

PIUs, LLAROs9,

TPPMO, LPMOs, LLBs, LBCAs

- - - - Included in the local Land Acquisition and Resettlement budget

Contractor

Obligation prior

to construction

Construction

site EMP (22) Each civil contractor shall prepare a

Construction-site EMP, based on this EMP, which shall include the following plans: (a) Site drainage and soil erosion protection; (b) Spill control and management; (c) Environmental, health and safety management plan (EHSMP); (d) Surface water protection; (e) Temporary traffic management; (f) Construction site access control. These plans are further elaborated below (construction phase).

Contractors, CSC

EMUs, PIUs,

CS-ES

- - - - Included in civil work contracts

Subtotal 18 12 5.5 3.5 3.0

Total 42.0 (67,742 USD)

B. Construction Phase

Soil & Geology Soil erosion,

soil

contamination

(1) Develop and implement a Site Drainage and Soil Erosion Management Plan that responds to the WSECP approved by Tacheng WRB, and the project EISs. Measures shall include the following:

- During road and bridge constructions, maintain slope stability at cut faces by implementing erosion protection measures

Contractors, CSCs

PIUs, TPPMO-S

O, LEPBs, LWRBs,

CS-ES

350.0 200.0 50.0 40.0 30.0 Included in construction contract

9 Local Land Acquisition and Resettlement Office


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0.3 line


Attachment 1 –EMP

EMP-10

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


such as terraces and silt barriers;

- Stabilize all cut slopes, embankments, and other erosion-prone working areas while works are going on;

- All earthwork disturbance areas must be stabilized within 30 days after earthworks have ceased at the sites;

- Minimize active open excavation areas during trenching activities and use appropriate compaction techniques for pipe trenches construction;

- Provide temporary detention ponds or containment to control silt runoff;

- Construct intercepting ditches and drains to prevent runoff entering construction sites, and divert runoff from sites to existing drainage;

- Strip and stockpile topsoil, cover or seed temporary soil stockpiles;

- Limit construction and material handling during periods of rains and high winds;

- Properly slope or re-vegetate disturbed surfaces, such as compacted pipeline trenches and cut banks;

- Protect slopes on both sides of bridges and culverts;

- Plant grass to protect slopes, especially on sandy soil and terraced slopes; and

- Appropriately set up temporary construction camps and storage areas to minimize the land area required and impact on soil erosion;

(2) Implement the following measures to avoid soil contamination:

- Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas, and use the best management practice to avoid soil

Attachment 1 –EMP

EMP-11

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


contamination;

- Remove all construction wastes from the site to approved waste disposal sites timely;

- Establish emergency preparedness and response plan (Spill Management Plan); and

- Provide spill cleanup measures and equipment at each construction site and require contractors to conduct training in emergency spill response procedures.

Earthwork, spoil disposal site management and restoration

(3) Transport surplus earth to the approved spoil disposal sites (as defined in the WSECP) with proper covering;

(4) Conduct environmental restoration for all spoil sits after completion of the disposal

Contractors, CSCs

LPMOs, PIUs,

LEPBs,

CS-ES, TPPMO-S

O


Surface water

quality and

hydrology

Impact on river

hydrology by

bridge

construction

(5) River bridge pier construction shall be conducted during the dry season; construction during the high-flow season (April to June) will be prohibited;

(6) Foundation treatment and pier grouting come first in pier construction; and

(7) Provide adequate opening for flood flow before the rainy season.

Contractors, CSCs

PIUs, , CS-ES, LEPBs, LWRB,

TPPMO-SO

,

30.0 30.0 15.0 8.0 5.0 Included in construction

contract

Impact on river hydrology by river rehabilitation works

(8) Set cofferdam diversion along the Kalangguer River; and

(9) River bank constructions shall be conducted during the dry season, and construction during the high-flow season (April to June) shall be prohibited.

Surface and groundwater pollution

(10) During bridge and river bank constructions, pump slurry to shore and properly dispose cutting materials;

(11) Install sediment traps along the river to minimize sediment runoff into the river during earthwork;

(12) Develop contingency plans for control





Attachment 1 –EMP

EMP-12

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


of oil and other dangerous substances (Spill Management Plan);

(13) Collect wastewater from construction activities in sedimentation tanks, retention ponds, and filter tanks to remove silts and oil;

(14) Equip all areas where construction equipment is being washed with water collection basins and sediment traps;

(15) Station fuel storage, maintenance shop and vehicle cleaning areas at least 500 m away from the nearest water body;

(16) Locate storage facilities for fuels, oil, and other hazardous materials within secured areas on impermeable surfaces, and provided with bunds and cleanup installations;

(17) Ensure that fuel suppliers are properly licensed. They shall follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods);

(18) Locate labor camps at least 500 m from ecologically sensitive receivers, such as rivers, and natural water bodies, etc.;

(19) Install eco-toilets and septic treatment and disposal systems at construction camps along with proper maintenance protocols;

(20) The discharge of construction wastewater to the rivers and channels will be prohibited;

(21) Conduct water quality monitoring in the rivers and the natural ponds during construction in accordance with the EMP monitoring program to identify and confirm results of the impact assessment and effectiveness of adopted mitigation measures.

Attachment 1 –EMP

EMP-13

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


Ambient Air Dust generated

by construction

activities

(22) Spray water daily on construction sites and earth/material handling routes where fugitive dust is being generated;

(23) Pay particular attention to dust suppression near sensitive receptors such as schools, hospitals and residential areas; and

(24) Cover materials during truck transportation, in particular, the fine material, to avoid spillage or dust generation.

Contractors, CSCs

PIUs, LEPBs, CS-ES,

TPPMO-SO


Air emission

from asphalt

pavement, and

vehicles and

machinery

(25) Locate asphalt plants and mixers as far away as possible (at least 500 m downwind) from the nearest residential areas, and other sensitive receptors;

(26) Store petroleum or other harmful materials in appropriate places and covering to minimize emission;

(27) Maintain vehicles and construction machinery regularly to a high standard of efficient running and fuel-burning to ensure emissions from vehicle and construction machineries are in compliance with the PRC standards of GB18352-2005, GB17691-2005, GB11340-2005, GB2847-2005, and GB18285 -2005; and

(28) Initiate a regular inspection and certification system for vehicle and equipment emission.

Noise Noise

generated from

construction

activities

(29) Ensure that noise levels from source of equipment and machinery conform to the PRC standard of GB12523-90, and properly maintain construction vehicles and machineries to minimize noise;

(30) Locate sites for rock crushing, concrete-mixing, and similar activities at least 1 km away from sensitive areas;

(31) To reduce noise at night, restrict the operation of machinery generating high

Contractors, CSCs

PIUs, CS-ES, LEPBs,

PMO-SO





Attachment 1 –EMP

EMP-14

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


levels of noise, such as piling, and movement of heavy vehicles along urban and village roads between 20:00 and 06:00 the next day in accordance with PRC regulations;

(32) Take special caution at construction sites that are close to such sensitive sites as schools and office buildings. When construction activities are unavoidable during the school seasons, the use of heavy equipment will be restricted to weekends and non-class hours.

(33) Place temporary hoardings or noise barriers around noise sources during construction, if necessary;

(34) Monitor noise at sensitive areas at regular intervals (refer to the monitoring plan in the EMP). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation; and

(35) Conduct monthly interviews with residents living adjacent to construction sites to identify community complaints about noise, and seek suggestions from community members to reduce noise annoyance. Community suggestions will be used to adjust work hours of noise-generating machinery.

Vibration Vibration

generated by

piling

Contractors, CSCs

PIUs, CS-ES, LEPB,

TPPMO-SO

- - - - - Included in construction contract

Solid Waste Solid waste

generated by

construction

activities and

from workers’

(36) Provide appropriate waste collection and storage containers at locations away from surface water or sensitive receivers;

(37) Reach agreement with municipal waste

Contractors, CSCs

PIUs, CS-ES, LPMOs, LEPB,

TPPMO-S




Attachment 1 –EMP

EMP-15

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


camps collection services prior to construction for regular collection of waste;

(38) Properly remove and dispose of any significant residual materials, wastes and contaminated soils that remain on the ground timely during and after construction to designated sites. Any planned paving or vegetating of the area shall be done as soon as the materials are removed to protect and stabilize the soil;

(39) Burning of waste is strictly prohibited.

(40) Provide sufficient garbage bins at strategic locations and ensure that they are protected from birds and vermin, and emptied regularly (using the municipal solid waste collection systems).

O

Flora and Fauna Protection of vegetation and fauna

(41) Properly plant trees, bushes and grass in accordance with the FSR

(42) Protect existing vegetation nearby construction sites;

(43) Properly backfill, compact and re-vegetate pipeline trenches after pipeline installation;

(44) Protect existing trees and grassland during road, bridge, river rehabilitation and pipeline constructions; where a tree has to be removed or an area of grassland disturbed, replant trees and re-vegetate the area immediately after construction;

(45) Remove trees or shrubs only as a last resort if they impinge directly on permanent works or approved necessary temporary works;

Contractor, CSCs

PIUs, CS-ES, LPMOs, LFB10,

PMO-SO

2,210.011

3,410.012

474.9 2,015.9 302.8 Included in construction contract

10

Local Forestry Bureau. 11

Including the roadside landscaping areas 12

Including the riverside reforestation





Attachment 1 –EMP

EMP-16

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


(46) In compliance with the PRC’s forestry law, undertake compensatory planting of an equivalent or larger area of affected trees and vegetation; and

(47) Use native plant species of local provenance will for replanting; and

(48) Take special precautions during and after construction for the protection of small animals, reptiles, and birds of common species that live in the vegetated roadside and riverside areas, medians, inner areas of bridges, and green areas.

Socio-

economic

impacts

Impact on physical cultural resources

(49) Establish chance-find procedures for physical cultural resources; and

(50) If a new site is unearthed, work shall be stopped immediately and local BCR and the LPMO promptly notified, and construction will resume only after thorough investigation and with the permission of the appropriate authority.

Contractors, CSCs

PIUs, CS-ES, LBCR13,


Community health and safety

(51) Develop and implement temporary traffic control and operation plan. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed;

(52) Conduct underground facilities survey and protection to avoid disturbances to utility services, where needed.

(53) Disclose information to residents and businesses in advance through media of the construction activities, given the

13

Local Bureau of Cultural Relics






Attachment 1 –EMP

EMP-17

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


dates and duration of expected disruption;

(54) Ensure that construction sites are well protected by placing clear signs at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc., and raising awareness on safety issues. All sites shall be secured, disabling access by members of the public through appropriate fencing whenever appropriate.

Occupational health and safety

(55) Each civil work contractor shall develop and implement an environmental, health and safety management plan (EHSMP) which shall include the following provisions:

- Provide a clean and sufficient supply of fresh water, for construction sites and for all camps, offices and workshops;

- Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state;

- Garbage receptacles at construction site and camps will be setup, which will be periodically cleared to prevent outbreak of diseases;

- Provide personal protection equipment, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations for workers;

- An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events, and submitted to the local EPBs for

Contractors CSCs, LLBs, EPBs, CS-ES



Attachment 1 –EMP

EMP-18

Item Potential

Impacts and Issues



Funds Who

Implements Who

Supervise


Tuoli. Infra


review and appraisal. Emergency phone link with hospitals in the three project towns will be established. A fully equipped first-aid base in each construction camp will be organized;

- A records management system that will store and maintain easily retrievable records protected against loss or damage will be established. It will include documenting and reporting occupational accidents, diseases, and incidents. The records will be reviewed during compliance monitoring and audits;

- Ensure that occupational health and safety matters are given a high degree of publicity to all persons regularly or occasionally on each construction site. Posters will be displayed prominently in relevant areas of the site; and

- Train all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work. Implement SITs/HIV/AIDS and other communicable diseases awareness and prevention program to target the local community and construction workers.

Subtotal 2,831.0 3,732.0 627.9 2,129.9 384.8

TOTAL 9,705.6 (15.6542 million USD)

Source: Domestic EISs and FSRs, and PPTA Consultant’s Report.

Table EMP-3: Potential Impacts and Mitigation Measures during Operation for Urban Infrastructure Components

Item Potential

Impacts and Issues


Responsibility Budget (10,000 CNY) Source of

Funds Performance

Indicator Who Implement

Who Supervise

Tacheng E’min Tuoli Yumin

Attachment 1 –EMP

EMP-19

Item Potential

Impacts and Issues



Funds Performance


Who Supervise


Ambient Air Excessive vehicle emissions, affecting ambient air quality

(1) Conduct periodic examination of emission of vehicle exhaust pollutants for each vehicle in accordance with PRC regulation (such as GB18352.3-2005);

(2) Refuse registration to vehicles with excessive emissions; and

(3) Conduct air quality monitoring (through EMS) in accordance with the monitoring program until a PCR is issued.

HCBs, TMBs14, EMSs15

LEPBs, LPMO, TPPMO

5.0/a16 2.0/a 1.5/a 1.0/a HCBs’ operation budget

NO2, CO, PM10, (GB 3095-2012 after 01/01/2016)

Acoustic Environment

Traffic noise along project roads

(4) Proper maintenance of trees, shrubs and grass planted along the proposed roadsides after construction.

HCBs PIUs, CS-ES, CSCs

30.0/a 10.0/a 8.0/a 5.0/a Included in civil works contracts

Tree No. and vegetation area (m2).

(5) Conduct ambient noise monitoring, determine whether mitigation measures will be required for sites where noise levels are expected to exceed by more than 3 dB(A);

EMSs LEPBs, LPMO

5.0/a 2.0/a 1.5/a 1.0/a HCBs operation and maintenance budget

GB 3096-2008 Class II

Surface & Ground Water

Pollution from stormwater and snow melt runoffs and solid waste

(6) Routinely collect and properly dispose litter and debris from sidewalks, driveways, and parking lots, especially near rivers and channels;

(7) Install litter traps along waterways (small floating mesh traps attached to one bank) and regularly empty these;

(8) Clean the roadside catch basins before rainy season to avoid surface water pollution by storm water runoff flushing debris and silt;

(9) Place garbage bins and containers along the road networks;

(10) Maintain storm-water retention facilities along the roads nearby the rivers.

HCBs, EMSs

LEPBs, LWRBs

60.0/a 20.0/a 10.0/a 8.0/a HCBs operation budget

SS, COD, Petroleum

(GB3838- 2002), and (GB/T14848-1993)

14

Traffic Management Bureau 15

Environmental Monitoring Station 16

Include the monitoring cost only, the coasts for vehicles emission are paid by drivers;


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Attachment 1 –EMP

EMP-20

Item Potential

Impacts and Issues



Funds Performance


Who Supervise


Sewers, wastewater collection and treatment

(11) Regularly inspect and maintain project sewers;

(12) Review performance of linked WWTPs in the project city/counties (treatment performance, compliance with effluent standards)

HCBs,

LEMSs, PIUs

LEPBs, LPMO

4.0/a 2.0/a 1.0/a 0.8/a HCBs’ operation budget

National WWTP Effluent quality standard of GB 18918 -2002)

Health and Safety

Traffic safety (13) Implementation of road safety and transport planning assessment and training: a) conduct traffic safety audit for the project city/counties; b) - identify safety concerns in traffic safety feature implementation, traffic safety education and enforcement needs; and c) develop program for public safety education and safety awareness.

PMCSLIS, LTMBs

LEPBs, LTMB, PSB

17

5.0/a 3.0/a 2.0/a 1.5/a Capacity building budget of the loan

Training course satisfaction survey.

Spills of dangerous goods

(14) Ensure that all trucks carrying hazardous materials are marked according to PRC norms;

(15) Enforce traffic controls, and set speed limits for trucks carrying hazardous material;

(16) Prepare a rapid spill response and clean up protocol so that in the event of a spill the appropriate people and equipment are quickly notified and action can be taken.

HCBs, LTMBs

LEPBs, PSB,

CS-ES

5.0/a 3.0/a 2.0/a 1.5/a HCBs’ operation budget

Presence of rapid spill response protocol

Flora Vegetation (17) Routinely inspect and properly maintain all roadside trees, slope stabilization sites, and landscaping vegetation. Keep at least 98% of survival rate.

HCBs

LEPBs, LFBs

10.0/a 5.0/a 2.0/a 1.5/a HCBs’ operation and maintenance budget

Survival rate of roadside vegetation (%)

Soil Soil erosion (18) Inspect and properly maintain erosion protection measures including seeded or stabilized slopes, drainage structures and retaining walls at least

HCBs

LEPBs, WRBs

4.0/a 2.5/a 2.0/a 1.0/a HCBs’ operation and

Marks (0-100) given by inspection

17

Public Security Bureau


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Attachment 1 –EMP

EMP-21

Item Potential

Impacts and Issues



Funds Performance


Who Supervise


twice during the first year of the roads’ operation to ensure that they are maintained properly and are functioning as designed.

maintenance budget

expert team. from LWRBs

Natural Hazard

Reduced flood discharge capacity as result of accumulation of debris.

(19) Clean culverts, bridge pears, and drainage pipes before high runoff season;

HCBs

LEPBs, WRBs

8.0/a 5.0/a 3.0/a 2.0/a HCBs’ operation and maintenance budget

Annual EMR

Subtotal Recurrent costs 132.0/a 44.5/a 33.0/a 11.6/a

TOTAL 221.1/a (356,613USD/a)

Source: the domestic EIS Reports, SEPPs, and PPTA Consultant Not yet covered: - District heating - Solid waste (if any) - Public toilets (cleaning)

Table EMP-4: Potential Impacts and Mitigation Measures during Operation for Kalangguer River Rehabilitation and Flood Control Components

Item Potential

Impacts/Issues Mitigation Measures and/or Safeguards

Responsibility Budget

(10,000 CNY) Source of

Funds Performance


Who Supervise

Embankment Embankment stability (1) Inspect all river embankment stabilization works for physical integrity. If signs of failure are discovered, a repair program will be implemented immediately;

WRB LEPB, LPMO, TPPMO

10.0/a

Included in the WRB’s operation

cost

Project completion

report

Routine

maintenance

of river

embankment

Impaired flood flow capacity as a result of obstructions and waste accumulation, Pollution and blockage of river due to solid waste and

(2) No artificial structures are allowed to be constructed to impound water restricting free flow of flood waters;

(3) Regularly maintain the rivers and their embankments, including removal of garbage and vegetation;

(4) Periodically remove solid waste and debris, and dispose in municipal landfill;

(5) Inspect surrounding areas and ensure that no

WRB LEPB, LPMO, TPPMO

40.0/a

Included in the WRB’s operation

cost

Visual inspection, satisfaction

survey (after one year).


0.1 line


0.1 line


0.1 line


0.1 line


0.1 line

Attachment 1 –EMP

EMP-22

Item Potential

Impacts/Issues Mitigation Measures and/or Safeguards

Responsibility Budget

(10,000 CNY) Source of

Funds Performance


Who Supervise

wastewater discharge wastewater is discharged to the rivers without prior treatment.

Routine

maintenance

of riverside

vegetation

and

landscaping

area

Impaired flood flow capacity as a result of poor vegetation maintenance

(6) Daily maintenance: manage the vegetation including pruning, weeding and replacement of dead or dying trees and shrubs;

(7) Pest control: The guiding principle will be prevention first followed by integrated treatment, no pesticide to avoid water pollution; and

(8) Fire prevention: Measures for prevention of fire will be put in place.

WRB, PIU IAs, LEPB, LPMO

50.0/a

Included in the WRBs’ operation

cost

Visual inspection, satisfaction

survey (after one year).

Flood

protection

over design

flood levels

Flood monitoring and early warning

(9) Maintenance of flood early warning system including a coordination center, rainfall/snow melt monitoring stations, and flood warning broadcasting stations

PIU, WRB LPMO, TPPMO,

ADB

10.0/a Included in project

procurement plan

Project completion

report

Kalangguer

Reservoir

Minimum ecological flow

(10) Ensure that the Kalangguer River receives a minimum flow at all times in accordance with the Kalangguer reservoir operating rule on minimum flow provision as defined in the reservoir EIA approved by the Ministry of Environmental Protection in 2002.

WRB LPMO, TPPMO

1.0/a WRB operational

budget

Annual EMR (first year operation)

TOTAL Recurrent cost 111.0/a (179,032 USD)

Source of the budget: the domestic EIA Reports, SEPPs, draft project administration manual (PAM)


0.1 line


0.1 line


0.1 line

EMP-23

D. Environmental Monitoring, Inspection and Reporting

13. The project monitoring program focuses on the environment within the project‘s areas of influence in the four project city/counties. A detailed environmental monitoring program is shown in Table EMP-6, which covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards to be followed are the national environmental quality standards of air, water and noise, and the pollutant discharge standards as well.

14. Internal monitoring/supervision and reporting by CSCs. During construction, CSCs will be responsible for conducting internal environmental inspections in accordance with the monitoring plan18 (Table EMP-6). Supervision results will be reported through the CSCs’ monthly reports to the PIUs.

15. Environmental impact monitoring by local EMSs. The PIUs will contract the local EMSs to conduct environmental monitoring in accordance with the monitoring program (Table EMP-6 and EMP-7). A detailed cost breakdown will be provided by the local EMS when the environmental monitoring program is updated at the start of each component implementation. Monitoring will be conducted during construction and operation period, until a project completion report is issued. Quarterly monitoring reports will be prepared by the EMSs and submitted to PIUs, local EPBs, and TPPMO.

16. EMP implementation compliance monitoring (Table EMP-5). The CS-ES will review project progress and compliance with the EMP based on field visits, and the review of the environmental monitoring conducted by the EMSs. The findings of the CS-ES will be reported to ADB through the annual environment monitoring reports. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including community and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The CS-ES will help TPPMO prepare the reports and submit the English report to ADB for appraisal and disclosure.

17. Project completion environmental audits. Within three months after each project component completion, or no later than one year with permission of the local EPBs, environmental acceptance monitoring and audit reports of each subproject completion shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the annual EMP monitoring and progress reporting process. The environmental audits can be conducted together with the overall project completion acceptance inspection.

Table EMP-5: Environmental Reporting Plan

Report From To Frequency of Reporting

A. Construction Phase Construction progress reports CSCs PIUs Monthly

Environmental impact monitoring reports

Local EMSs PIUs, local EPBs,

TPPMO Quarterly

Environment monitoring reports

TPPMO, PIUs

ADB Quarterly (summary, through

quarterly project progress reports)

TPPMO ADB Annually (stand-alone report for

18

The CSC will assign at least an environmental engineer on each of the construction sites.


EMP-24

disclosure)

Environmental acceptance monitoring and audit reports

Licensed institute

local EPBs, TPPMO, IAs, PIUs, ADB

Within three month after component completion

B. Operation Phase Environment monitoring reports

TPPMO ADB Annually (until a PCR is issued)

Source: Domestic EIAs and PPTA Consultants

EMP-25

Table EMP-6: Environmental Monitoring Program (For Urban Infrastructure Components)

Subject Parameter Location Frequency Who

Implements Who

Supervises Estimated Cost (RMB 10,000)


Construction Phase

Surface water SS, NH3-N, oil, CODcr, total coliforms

3 monitoring points per river crossing in Tacheng and Emin: At each project bridge, 50m upstream, and 100m downstream

Impact monitoring: Once per day, for 2 consecutive days, 2 times per year during construction season and high runoff (April, September) .

LEMS PIUs, LEPBs 9.0 5.0 2.0 1.5

Air Inspection of dust mitigation measures (water spraying, cover transport vehicles, etc.); and maintenance of vehicles and construction equipment

Visual inspection at all construction sites.

Internal Monitoring: daily CSCs PIUs Included in the construction supervision contract

External Monitoring: At least four times per year

CS-ES TPPMO, LEPBs

Included in CS-ES contracts

TSP, PM1019

, NOx At all construction sites (at least one point upwind, two points downwind) and sensitive receivers nearby

20.

Impact Monitoring: Twice per day for 3 consecutive days, 4 times per year during constructions.

LEMSs PIUs, LPMOs, LEPBs

10.0 5.0 3.0 2.0

Noise LAeq At the boundary of all construction sites and sensitive receivers nearby.

Impact Monitoring: Twice per day (once in day time and once at night time) for 2 consecutive days, 4 times per year during construction.

LEMSs LPMOs, EPBs

5.0 4.0 3.0 2.0

Solid Waste Garbage from work-camps and construction waste at construction sites

Visual inspection at all construction sites and work-camps

Internal Monitoring: Daily CSCs PIUs Included in the construction supervision contract

External Monitoring: Twice per year

CS-ES LEPBs, TPPMO, ADB


Soil erosion, vegetation

Soil erosion intensity, re-vegetation

Visual inspection at construction sites and spoil site

Internal Monitoring: check after rain events

CSCs PIUs, LPMOs Included in the construction supervision contract

External Monitoring: twice per year, and once after completion of construction

LSMI21

, CS-ES

LEPBs, TPPMO, ADB

10.0 15.0 10.0 6.0

19

Tacheng EMS have no capacity to monitor PM2.5 in 2014-2015. 20

See Chapter IV-sensitive receivers within project area of influence 21

Licensed soil erosion monitoring institute

EMP-26


Implements Who



Slope stability, topsoil stockpile and rehabilitation of construction sites

Visual inspection of all subgrade slopes and retaining walls, bridges, culverts

Internal Monitoring: At least four times per year

CSCs PIUs Included in the construction supervision contract

External Monitoring: At least once per construction season, and once after completion of construction.

CS-ES LEPBs, EA, ADB


Compensatory plantings and re-vegetation spoil disposal sites and construction sites

Visual inspection at all disposal sitesand temporary occupied lands

Internal Monitoring: At least four times per year

CSCs PIUs

Included in the construction supervision contract


CS-ES LEPBs, EA, ADB


Construction site health and safety

Work camp hygiene and safety, availability of clean water, construction site access control, and emergency response plans

Inspection at all construction sites and work-camps

Internal Monitoring: Monthly CSCs

LPMOs, PIUs Included in the construction supervision contract


CS-ES LPHB22

Included in CS-ES contract

Subtotal 34.0 29.0 18.0 11.5

Total 92.5 (149,200 USD)

Operation Phase

Noise LAeq All sensitive receivers23

along the roads and nearby bridges

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

LEMSs LPMOs, LEPBs

3.5/a 2.0/a 1.5/a 1.0/a

Air TSP, SO2, NOx, PM10

All sensitive receivers along the roads and nearby bridges

Twice per day for 3 consecutive days, twice per year

LEMSs LPMOs, LEPBs

5.0/a 3.0/a 2.0/a 1.5/a

Surface water pH, SS, DO, NH3-N, oil, COD, total coliforms

50m upstream and 50 and 100m downstream of project bridges.

Once per day, for 3 consecutive days, once per year (during high flow).

EMSs LPMOs, LEPBs

5.0/a 3.0/a 1.5/a 0.5

Soil and Vegetation

Vegetation survival and coverage rate

Re-vegetated sites (spoil disposal sites, construction sites)

Spot check, twice per year OPFs, LPMOs, PIUs

LEPBs, , TPPMO, LFBs

24

Included in OPF’s operation budget

22

Local Public Health Bureaus 23

See the Chapter IV of IEE 24

Local Forestry Bureau


EMP-27


Implements Who



Traffic flow and safety

Vehicle numbers and road use (against predictions), accident incidents

Project roads Road traffic monitoring program

OPFs, LPMOs LTMBs25

, TPPMO

Subtotal 13.5/a 8.0/a 5.0/a 3.0/a

Total 29.5 (47,580 USD)

BOD5 = 5-day biochemical oxygen demand; CODcr = chemical oxygen demand; CSC = construction supervision company; EMS = environmental monitoring station; EPB = environmental protection bureau; IA = implementation agency; LAeq = equivalent continuous A-weighted sound pressure level; LSMI = licensed soil erosion institute; NH3-N = ammonia nitrogen; NOx = nitrogen oxides; OPF = operators of project facilities; PM10 = particles measuring 10Âμm or less; LPMO = local project management office; SO2 = sulfur dioxide; SS = suspended solids; TPPMO = Tacheng Prefecture Project Management Office; TSP = total suspended particle

Table EMP-7: Environmental Monitoring Program For Kalangguer River Rehabilitation and Flood Control Components


Implement Who

Supervise

Estimated Cost (RMB

10,000)

Construction and work-camp domestic wastewater

pH, COD, NH3-N, SS, oil At discharge points of all construction sites, work camps

Impact Monitoring: One sampling each day each time, twice per year during construction season.

LEMS PIU, LEPB, LWCB

6.0

Surface water

pH, DO, SS, NH3-N, CODcr, oil, anionic surfactants

50 m upstream, and 100m downstream, and at site of construction activities on Kalangguer River.

Impact monitoring: one sampling each day, two consecutive days, 4 times per year during construction period, at least 5 monitoring points to be selected

26.

LEMS TPPMO, LEPBs

5.0

Air Visual Inspection of dust mitigation measures (water spraying, cover transport vehicles, etc.); and maintenance for vehicles and construction equipment

At all construction sites Internal Monitoring: Daily CSC PIU Includes in CSC contract

External Monitoring: Twice per year CS-ES LEPB, LWCB

2.0

PM10, SO2, NOx At all construction sites (at least one point upwind, two points downwind);

Impact Monitoring: Twice per day for three consecutive days, twice per year during construction season

LEMS PIUs, LEPBs,

5.0

Noise LAeq At boundary of construction Impact Monitoring: Twice per day LEMS PIUs, 4.0

25

Local Traffic Management Bureau 26

A point at each of the five river sections (Chapter III of the IEE).




EMP-28


Implement Who

Supervise

Estimated Cost (RMB

10,000)

sites, and at baseline monitoring points (Chapter IV of IEE).

(once in day time and once at night time) for 2 consecutive days, twice per year during construction season.

LEPB,

Soil erosion Visual inspection of topsoil stockpile and construction site rehabilitation (e.g. compensatory plantings)

At all construction sites Internal Monitoring: Daily CSC PIU Included in the CSC contract

External Monitoring: Twice per year during construction season

CS-ES LEPB Included in the CS-ES contract

Occupational health and safety

Inspection of hygiene status, availability of clean water and emergency response plans

At all construction sites and work-camps

Internal Monitoring: Daily CSC

PIU Included in the CSC contract

External Monitoring: Twice per year during construction season

CS-ES LLB27

Included in the CS-ES contract

Subtotal 22.0 (35,484 USD)

Surface water pH, SS, NH3-N, DO, CODcr, BOD5, NO2-N, oil, TP, TN, total coliform

4 points along the river, and at the proposed 5 monitoring sites (a point for each of the five sections)

Compliance monitoring: One sampling each day, three consecutive days, four times per year

LEMS LEPB 4.0/a

Riverside vegetation

Water consumption for irrigation (m3/a)

Along project section of Kalangguer River

Internal Monitoring: Yearly LWRB LEPB, LFB 2.0/a

Subtotal (Recurrent cost) 6.0/a

CODcr = chemical oxygen demand; CSC = construction supervision company; IA = implementation agency; LEMS = Local Environmental Monitoring Station; LEPB = Local Environmental Protection Bureau; LWRB = Local Water Resource Bureau; LFB = Local Forestry Bureau; LAeq = equivalent continuous A-weighted sound pressure level; NH3-N = ammonia nitrogen; NOx = nitrogen oxides; PM10 = particles measuring 10Âμm or less; SO2 = sulfur dioxide; SS = suspended solids; TN = total nitrogen, TP = total phosphorus; TSP = total suspended particle;

27

Local Labors’ Bureau


29

EMP-29

E. Training

18. To ensure effective implementation of the EMP, the capacity of the TPPMO, LPMOs, PIUs, OPFs, CSCs and contractors must be strengthened, and all parties involved in implementing mitigation measures and monitoring of environmental performance must have an understanding of the goals, methods, and the best practices of project environmental management. Tacheng Prefecture EPB, the project management consulting services (PMCS) will offer training specific to their roles for the project. The main training emphasis will be to ensure that the contractors, CSCs, PIUs, IAs, LPMO, TPPMO and OPFs are well versed in environmentally sound practices and are able to undertake all construction and operation with the appropriate environmental safeguards.

19. The training program also addresses long-term capacity building needs, i.e. for the operational phase of the project. Training will be provided by qualified experts on infrastructures management, operation and maintenance of Kalangguer River, strategic urban and regional planning (including strategic environmental impact assessment of urban development plans), sustainable urban transport planning, road safety, and emergency preparedness and response planning.

20. The following training programs (Table EMP-8) will be delivered or organized by the PMCS during the course of project implementation. Training Needs Assessments will be conducted by the PMCS to tailor the training for maximum impact. The CS-ES will design an evaluation questionnaire to gauge the usefulness of the training/capacity building design and performance of the trainer. The evaluation will be taken into account in the trainer’s performance evaluation.

Table EMP-8: Indicative List of Training Program Related to Environment

Training topic Scope of Training Trainer Trainee

Procurement and contract management

(1) ADB’s procurement guideline and bidding procedure (2) Bidding document preparation, including EMP clauses

start-up consultant, PMCS, CS-ES

CSC, IAs, LPMOs, PIUs

Implementation of EMP

(3) EMP implementation, including implementation responsibilities, environmental monitoring, inspection and reporting, consultation and participation, mechanism of EMP review, feedback and adjustment;

(4) GRM, including GRM structure, responsibilities and timeframe, types of grievances, eligibility assessment;

(5) and (6) Communication with the public by different means (Innovative

community-based advocacy campaigns).

CS-ES, PMCS, TPEPB

CSC, IAs, PIUs, LPMOs, Contractors, GRM access points, and other related local bureaus

Municipal solid waste management

(7) International and national good practices for solid waste management (3 R principal)

(8) Municipal solid waste management technologies and options (9) Public awareness program and public willingness (10) Use of performance indicators

CS-CB; CS-ES

CSC, IAs, LPMOs, PIUs, other related local bureaus

Sustainable transport planning

(11) International and national good practice for urban transport planning

(12) Coordination with urban and regional plans (13) Transport demand and projection analysis (14) Transport data collection procedure (person-trip survey) (15) Policies for promoting sustainable, green and inclusive urban

transport planning (16) Public awareness program and public willingness (17) Use of performance indicators

CS-CB, CS-SS

CSC, IAs, PIUs, LPMOs, other related local bureaus (e.g. transport bureau),

Road safety (18) International and national good practice for road safety (19) Road safety audit tools and approaches (20) Data collection for road safety (21) Institutional responsibility and set-up (22) Policies for improving road safety

CS-CB CSC, IAs, PIUs, LPMOs, other related local


30

EMP-30

Training topic Scope of Training Trainer Trainee

(23) Public awareness program and education (24) Use of performance indicators

bureaus

River restoration and flood control

(25) River rehabilitation – international and national best practice (26) (27) Flood emergency planning (28) Flood early warning system (29) Operation and maintenance of riverside vegetation

CS-ES, CS-CB

CSC, IAs, LPMOs, PIUs

ADB = Asian Development Bank, CSC = construction supervision company; EA = executing agency, EHS = environment health and safety, EMP = environment management plan, EPB = environment protection bureau, GRM = grievance redress mechanism, IA = implementing agency, PMCS= Project management consulting services; CS-ES = Environmental specialist, PMCS, PIU = project implementing unit, CS-CB = Capacity building consultants, PMCS, CS-SS = Social safeguards specialists, PMCS.

F. Public Consultation

21. Meaningful consultations were conducted during the domestic EIS preparation and PPTA. Direct public participation was conducted in each of the project city/counties as an ongoing element in the development of the components, and its outcome are described in Chapter VII of the IEE. These activities were carried out by the EIA institute in their preparation of the EISs, and by the PPTA consultants following the PRC National EIA Technical Guidelines and ADB SPS (2009) and Public Communication Policy (PCP, 2011).

22. Future plans for public involvement during the design, construction, and operation phases were developed during PPTA (Table EMP-9). Affected people will be consulted and informed through site visits and informal interviews by the PIUs (through their environmental management unit), with support of the CS-ES. Public meetings will be organized by the LPMOs and PIUs in the project city/towns prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. The CS-ES will, prior to project completion report, organize surveys in the project city/town to assess community satisfaction with project implementation, project outputs, and EMP implementation performance. The results will be documented in the project completion report (PCR). The project’s environmental information will be disclosed by the local EPBs and ADB as follows: (i) the project IEE is disclosed at www.adb.org; (ii) the Chinese EISs and TEIAs were disclosed on the website of the Tacheng Prefecture Environmental Protection Department (TPEPD); and (iii) the annual environment monitoring reports will be disclosed at www.adb.org.

Table EMP-9: Consultation and Participation Plan

Organizer Approach Times/Frequency Subjects Participants

Project preparation

EIA Institute Questionnaires and interviews

During field work for EIA

Project priority, effects, attitudes to the Project and suggestions

Residents within project construction areas and local agencies

PPTA Consultants, ADB

Site visits, public consultations, and interviews

Two rounds of consultation in each of the city/counties

Comments and recommendations of APs and stakeholders

Representatives of APs and stakeholder agencies

Construction

PIUs, TPPMO, CS-ES

Site visits informal interviews

Regularly (during site inspections by PIU EMU)

Construction impacts, site safety, comments and suggestions

Construction workers within construction area; and residents within construction area

Public meetings in each project city

Once prior to midterm review

EMP implementation progress, adjusting mitigation measures if necessary, construction impacts, comments and

Representatives of residents, APs, and related local agencies


http://www.adb.org/

http://www.adb.org/

31

EMP-31

Organizer Approach Times/Frequency Subjects Participants

suggestions

Operation

CS-ES, TPPMO


Prior to project completion

Community satisfaction with project implementation, project outputs, and EMP implementation performance.

Representatives of residents, APs, and related local agencies

EIA = Environmental Impact Assessment, AP = Affected people, OPF = Operator of Project Facilities, PIU = Project Implementing Unit, LPMO = Local Project Management Office, CS-ES = Environmental Specialist of Loan Implementation Support; PPTA = Project Preparation Technical Assistance.

G. Mechanisms for Feedback and Adjustment

23. Based on environmental inspection and monitoring reports, the TPPMO, LPMOs, PIUs shall decide, in consultation with the CS-ES, whether (i) further mitigation measures are required as corrective actions, or (ii) some improvements are required for environmental management practices.

24. The effectiveness of mitigation measures and monitoring plans will be evaluated by a feedback reporting system. Adjustment to the EMP will be made, if necessary. The LPMOs and their EMUs will play a critical role in the feedback and adjustment mechanism.

25. If during inspection, substantial deviation from the EMP is observed or any changes are made to the project that may cause substantial adverse environmental impacts or increase the number of affected people, then the TPPMO and the LPMOs will immediately consult with ADB and form an EIA institute to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIS/EIA report including the EMP will be submitted to the ADB for review, appraisal and disclosure. The revised EMP will be passed to the contractors, CSCs and OPFs for implementation.

H. Grievance Redress Mechanism (GRM)

26. A grievance redress mechanism (GRM) has been defined environmental, health and safety concerns and grievances. In consultation with the TPPMO, the LPMOs, the IAs, the PIUs, it was agreed that one GRM will established to address community concerns and complaints. The GRM will be coordinated by the TPPMO, with GRM access points at local level (contractors, PIUs, and IAs).

27. Grievances will most likely include disturbance of traffic; dust emissions; construction noise; inappropriate disposal of construction wastes; damage to private houses; safety measures for the protection of the public and construction workers; or surface water quality deterioration during bridge construction and Tacheng Kalangguer River rehabilitation and flood control works.

28. The GRM will be accessible to diverse members of the community, including more vulnerable groups such as women, minority and poor.

29. The TPPMO will establish a Project Public Complaint Unit (PPCU), which will be coordinated by the TPPMO-SO . The PPCU will instruct contractors, CSCs and the PIUs if people complain about specific project activities. The PPCU will coordinate with the concerned local EPB and other government divisions, if necessary, and will be supported by the CS-ES. The PPCU will establish a GRM tracking and documentation system, including procedures to retrieve data for reporting purposes to the TPPMO and ADB.

30. The contact persons for different GRM entry points, such as contractors, PIUs, local EPB,


line



32

EMP-32

PPCU, etc., will be identified prior to construction. The contact details for the entry points (phone numbers, addresses, e-mail addresses) will be publicly disclosed on information boards at construction sites. The chart of GRM is shown in Figure EMP-2.

A. Step-by-Step GRM Procedure

31. The procedure and timeframe for the grievance redress mechanism are described as follows (see Figure EMP-1):

i) Stage 1: If a concern arises during construction, the affected person will submit a written or oral complaint to the contractor directly. Whenever possible, the contractor will resolve the issue directly with the AP. The contractor shall give a clear reply within five (5) days. If successful, the contractor will inform the PPCU accordingly.

ii) Stage 2: If no appropriate solution can be found after the Stage 1 process applied (i.e., after 5 days), the contractor has the obligation to forward the complaint to the PPCU. The AP may also decide to submit a written or oral complaint to the PPCU, either directly or via one of the GRM entry points (local EPB, PIUCSC). For an oral complaint, proper written records must be made. The PPCU will assess the eligibility of the complaint, identify the solution and provide a clear reply for the complainant within five (5) working days. The CS-ES will assist the PPCU in replying to the APs, if needed. The PPCU will also inform ADB and XPMO and submit all relevant documents. Meanwhile, the PPCU will timely convey the complaint/grievance and suggested solution to the contractors or PIU. The contractors during construction and the PIUs during operation will implement the agreed upon redress solution and report the outcome to the PPCU, preferably within seven (7) working days.

iii) Stage 3: In case no solution can be identified by the PPCU, or the complainant is not satisfied with the proposed solution, the PPCU will organize, within 2-3 weeks, a multi-stakeholder hearing (meeting) involving all relevant stakeholders (including the complainant, contractor, local EPB, PIU, TPPMO). The hearing shall identify a solution acceptable to all, and formulate an action plan. The contractor during construction and the PIU during operation will implement the agreed-upon redress solution and report the outcome to the PPCU within the agreed upon timeframe.

32. The PPCU shall accept the complaints/grievances lodged by the AP free of charge. Any cost incurred should be covered either by the contractor, or by the contingency of the project. The grievance procedures will remain valid throughout the duration of project construction and until project closure.





33

EMP-33

Figure EMP-1: Proposed GRM

Note: AP = affected person, EPB = environmental protection bureau, PIU = Project implementing unit; CS-ES =

Environmental specialist of project management consultant services; TPPMO = Tacheng Prefecture project

management office; PIU=project implementation unit; CSC=construction supervision company.

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