Social Due Diligence Report of Dalkia (Jiamusi) Heating ......In the east of Tong Jiang street 302.9...

Social Due Diligence Report

41957-014 24 August 2012

Social Due Diligence Report of Dalkia (Jiamusi)

Heating Network Project for the PRC: Municipal

District Energy Infrastructure Development Project

Prepared by Dalkia (Jiamusi) Urban Heating Co., Ltd. for the Asian Development Bank (ADB)

This social due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Social Due Diligence Report

Of

Dalkia (Jiamusi) Heating Network

Project

Dalkia (Jiamusi) Urban Heating Co., Ltd.

24th August 2012

1

CONTENT

1、Project Introduction ............................................................................................................... 2

2、Construction ........................................................................................................................... 3

3、Employment of Workers From Connected Small Boiler ....................................................... 11

4、Conclusions ........................................................................................................................... 21

5、Corrective Plan ..................................................................................................................... 22

6、Appendix ............................................................................................................................... 23

TABLES AND FIGURES

Table 1 - Statistic on Primary and Secondary Pipelines Occupancy (2008-2011)

Table 2 - Statistic of Substations Occupancy

Table 3 - Employment of Workers of HOBs Connected (2008-2011)

Figure 1 - The Main Pipe Network (2007-2011)

Figure 2 - Office Area for Project and Self-provided Boiler House

Figure 3 - Small Boiler House Connected and Substations

2

1、Project Introduction

1.1 Dalkia (Jiamusi) Urban Heating Co. Ltd. Dalkia Jiamusi was incorporated in April 5, 2007. The Company is a sino-foreign joint venture between Dalkia and Jiamusi New Times Urban

Infrastructure Investment (Group) Co. Ltd., which belongs to the municipality of Jiamusi and which

is a substitute for the original Jiamusi Heating Company J(C . Dalkia Jiamusi has a concession for a 25-year-duration to manage the former J(C’s heating network and treble its size.

1.2 The concession area of Dalkia Jiamusi is located in the downtown of the city of Jiamusi. Its

service scope is east to Yindamu River, west to Yinggetu road, south to Shengli road and north to

south bank of Songhua River as shown in Figure 1:

Figure 1 - The Main Pipe Network (2007-2011)

1.3 Reconstruction of old pipe network and construction of new heating pipe and connection project

Within 5 years, Dalkia Jiamusi has invested in the construction and the reconstruction of the heating

network (including newly-built primary and secondary pipelines for a total 14 kilometers). Dalkia

Jiamusi has also invested in the reconstruction and new construction of 278 substations with 312

sets of heat exchangers units.

1.4 Dalkia Jiamusi is mainly involved in heating distribution. It owns two networks (interconnected).

The following table summarizes the distribution system to supply heat to the networks:

The main heat production sources are from two cogenerations which belong to third parties. They

are located at the West and East sides of Jiamusi. Dalkia Jiamusi also owns a big boiler house,

Jingjiang, located in the northern part of the town of Jiamusi, and four small peak-boiler houses

(which heat small areas outside the two networks). The following table summarizes the production

system to supply heat to the networks:

West network East network

Heating Seasons Heating Seasons

10/11 11/12 10/11 11/12

Primary Network Length (km) 41 47 93 98

Number of Substations 67 93 195 185

Primary Network Temperature 120°C / 70°C 95°C / 60°C

3

Heating area has increased from 5.7 million sq. meters to 10.6 million sq. meters. End-users have

also increased from 60. 000 households and more increased to 110,000 households.

1.5 Plan to build a new boiler as a heat source. Dalkia Jiamusi faced, during last heating season, the

problem of saturation from the two third-party cogenerations, the main suppliers of heat; this

saturation is mainly due to a lack of maintenance over the years which led to an important

deterioration of the heat capacity. This situation not only impacted on Dalkia Jiamusi’s operation, but also impacted on heat supply to end-users. The actual heating quantity of Jiamusi East

Cogeneration and West Cogeneration could not satisfy quantity demand, and therefore Dalkia

Jiamusi was not able to ensure heating demand for new buildings.

The plan is to build 1 x 58 MWth CFB hot-water boiler during year 2012. This boiler will be located

in the northeast of the west cogeneration site in an area of 1.8 hectares of empty land. This boiler

will enable Dalkia Jiamusi to heat around 1 million sq. meters. The Investment is estimated to reach

around RMB 60 million. As of August 2012, only the design has been prepared and the construction

period may start soon. The operation commencement date is expected to be in the second of half of

December 2012.

2、Construction

2.1 Dalkia’s Jiamusi assets and land used for the Project

2.1.1 The office area of Dalkia (Jiamusi) is in the form of a lease. The Chinese partner contributed to the JV with the former J(C’s boilers houses, network and substations. These assets belong to Dalkia Jiamusi which uses them without any compensation. There were no land occupation and

resettlement issues.

Figure 2 - Office Area and Self-Provided Boiler House

West Cogeneration East Cogeneration Jinjiang Boiler House Small Boiler Houses

Supply of

network West East West

Not in the network

covered area

Capacity

Boilers 2 x 220 t/h Turbines 1 x 50 MWe

+ 1 x 25 MWe

Boilers 1 x 1,050t/h Turbines 1 x 300 MWe

Boilers 3 x 29MWth (+ 1 x 29 MWth back-up)

Boilers 7.35 MWth

4

2.1.2 Land occupation for the new boiler. This land belongs to the West Cogeneration and has been

allocated by Jiamusi government to this company when it was set up (built in 1992, and began to

operate in 1998) and no relocation happened. It was originally a wasteland for flood discharge of the

Songhua River, but the local government built a flood control dam at 1 kilometer of the north of west

cogeneration. Now, it is used by the West Cogeneration to store ash; currently this land is empty – no ashes have been stored. Due to the current problem of lack of heat, the local government has

decided that this land will to be used to build the new heat source (the project is highly promoted by

Jiamusi local government) and thus the land will be sold to Dalkia Jiamusi.

2.2 New Primary and Secondary Pipelines

From 2008 to 2011, 14 kilometers of new primary and secondary pipelines were built. Main part of

the network was contributed by the Chinese partner to the JV. Primary network is built on the both

sides of urban road and bury under the sidewalks. To build the network, the company has to pay

road digging cost and road recovery expenses to Urban Construction Management Bureau before

the construction can start. So, pipelines construction did not involve any LA & R problems. By 2011,

road digging and occupying fees amounted to RMB 123,698.2 in total (actual incurred costs after

remission from Jiamusi local government). The details are shown in Table 1:

Table 1 - Statistics on Primary and Secondary Pipelines Occupancy (2008-2011)

No. Name of Road

Length of the

Pipelines

(Unit: m)

Wide of the

Pipelines

(Unit: m)

Construction

Period (Y/M)

Road Dig Fees

(RMB)

1 South of Yong Yi road 60 1.2 2008.8-2008.10 228

2 Road in residential

area 193 1 2008.8-2008.10 Remission

3 No.1 high school

connection 75 1 2008.8-2008.10 Remission


area 143 1.2 2008.8-2008.10 Remission

5 Xing Lin road 90 1.2 2008.8-2008.10 Remission

6 In the north of

Changan road 40 1 2008.8-2008.10 Remission


area 137 1.2 2008.8-2008.10 Remission


area 126 1.2 2008.8-2008.10 Remission

9 in the north of Xing

Lin road 142 1.2 2008.8-2008.10 Remission

10 Jian Guo road 245.8 1.4 2008.8-2008.10 Remission


area 119 1 2008.8-2008.10 Remission


area 87.5 1 2008.8-2008.10 Remission

13 Zhong Xin street 168 1.2 2008.8-2008.10 Remission

5

14 Xin Min alley 186.3 1 2008.8-2008.10 Remission


area 167 1.4 2008.8-2008.10 Remission

16 Qun Ying alley 94.5 1 2008.8-2008.10 Remission


area 172 1 2008.8-2008.10 Remission


area 61.5 1 2008.8-2008.10 Remission

19 Subtotal of 2008

length of pipe 2,301.6 subtotal in 2008 228

20 In the east of Tong

Jiang street 302.9 1.4 2009.8-2009.10 20,165

21 In the east of Tong

Jiang street 36.7 1 2009.8-2009.10 12,000


area 28.2 1.2 2009.8-2009.10 9,000

23 Road in factory area 23.5 1 2009.8-2009.10 Remission

24 Pass Fu Xing alley to

residential area 133.5 1.2 2009.8-2009.10 Remission

25 In the north of De

Xiang road 104.4 1 2009.8-2009.10 Remission

26 Pass Chang Qing road

to residential area 175.5 1.2 2009.8-2009.10 15,000


area 141 1 2009.8-2009.10 Remission


area 77.3 1.2 2009.8-2009.10 Remission

29 The north of Changan

road 98.8 1.2 2009.8-2009.10 13,000


area 54.7 1 2009.8-2009.10 Remission

31 South of Yong Yi road

to residential area 89 1 2009.8-2009.10 Remission


area 21 1 2009.8-2009.10 6,888

33 South of Bao Wei

road 17.65 1 2009.8-2009.10 Remission

34 Subtotal of 2009

length pipe 1,304.15 subtotal in 2009 76,053


area 51.1 1 2010.8-2010.10 634.99


area 236 1.2 2010.8-2010.10 3,134.57


area 105 1 2010.8-2010.10 2,728.18


area 100 1.2 2010.8-2010.10 Remission


area 420.5 1 2010.8-2010.10 Remission


area 127.7 1 2010.8-2010.10 Remission


area 366 1 2010.8-2010.10 Remission

6


area 192.8 1 2010.8-2010.10 Remission

43 Crossing of Sheng Li

road 112.7 1 2010.8-2010.10 Remission

44 Crossing of Xi Lin

road 221.4 1 2010.8-2010.10 4,974.61

45 Chun Guang Hu Tong 94.7 1 2010.8-2010.10 1,677.73


area 213.2 1.2 2010.8-2010.10 7,766.52

47 Xin Li Hu Tong 94.2 1 2010.8-2010.10 Remission

48 East of Song Lin

street 313.6 1 2010.8-2010.10 4,138.25

49 Tang Fu alley 245.5 1.2 2010.8-2010.10 Remission

50 Xi Lin road 170 1 2010.8-2010.10 634.99

51 South of Yong He

alley 79.8 1.2 2010.8-2010.10 Remission


area 8.4 1 2010.8-2010.10 Remission

53 South of Changan

road, Jian Guo road 238.7 1.4 2010.8-2010.10 10,113.32

54 Jian Guo road 52.6 1.2 2010.8-2010.10 Remission

55 North of Changan

road 133.6 1 2010.8-2010.10 Remission

56 South Xin Lin road,

He Ping road 137.4 1.2 2010.8-2010.10 4,087.87

57 South of Jie Fang road 113 1.2 2010.8-2010.10 Remission

58 Xin Yi Hu Tong 202.3 1.2 2010.8-2010.10 7,526.16

59 South of Guang Fu

road 32.9 1.2 2010.8-2010.10 Remission

60 Subtotal of 2010

length of pipe 4,163.1 Subtotal in 2010 47,417.20

61 Yong He alley 158.6 1 2011.5-2011.5 Remission


area 152.75 1 2011.5-2011.5 Remission

63 Wei Xin street 64 1.2 2011.5-2011.5 Remission

64 Xing Lin road 61 1 2011.5-2011.5 Remission


area 51 1.2 2011.8-2011.9 Remission

66 Guang Fu road 20.7 1 2011.5-2011.5 Remission


area 463.41 1 2011.5-2011.6 Remission

68 Xing Cheng Hu Tong 264 1 2011.5-2011.5 Remission


area 127.4 1.2 2011.5-2011.5 Remission

7

70 Chang Qing road 120.8 1.2 2011.5-2011.6 Remission

71 Chang Qing road 156 1.2 2011.5-2011.6 Remission


area 160.2 1 2011.6-2011.7 Remission


area 84 1 2011.8-2011.9 Remission

74 De Xiang road, Zhong

Xin street 215 1 2011.6-2011.7 Remission

75 Road in school 142.1 1 2011.5-2011.6 Remission


area 72 1.2 2011.7-2011.8 Remission

77 North of Xing Lin

road 70.5 1 2011.5-2011.6 Remission

78 Yong Tai street 224.3 1.2 2011.6-2011.7 Remission


area 280.9 1.2 2011.9-2011.10 Remission

80 Tai Feng alley, Fu

Feng street, 601.2 1.4 2011.6-2011.7 Remission

81 Pass through Jian Guo

road 164.2 1.2 2011.5-2011.6 Remission

82 Zhao Guo Hu Tong 413.8 1.4 2011.5-2011.6 Remission

83 South of Pu Dong

street 430 1.2 2011.5-2011.6 Remission

84

Fruit Product

company boiler's

connection

157 1 2011.8-2011.9 Remission


area 330 1 2011.5-2011.6 Remission


area 78 1 2011.8-2011.9 Remission


area 359.9 1 2011.6-2011.7 Remission


area 766.8 1.2 2011.10-2011.11 Remission


area 74 1.2 2011.8-2011.9 Remission

Total of length of pipe in

2011 6,263.56

2011 Road

break/dig fees -

Accumulative of length of

pipe 14,032.41 total 123,698.20

2.3 Substations

2.3.1 In order to stop small boiler houses which are highly pollutant, construction of substations are

necessary (it is also according to Jiamusi municipal Party committee and Jiamusi government plans).

Each year, Dalkia Jiamusi has the obligation to connect new areas/ customers. With the expansion of

centralized heating networks, the connected small boiler houses are either dismantled or can be

replaced by substations as well.

8

Figure 3 - Small Boiler House Connected and Substations

2.3.2 By the end of 2011, there were a total of 66 new substations, with a total land occupation area

of around 4,000 sq. meters. Among them, there are 10 substations which used the existed

basements of buildings, 35 substations which used the location of the dismantled connected small

boiler houses, 19 substations which used the land freely supplied by related property management

companies or municipal government, 1 substation for which location is leased and 1 substation

which used the original location of a substation (agreed with the owner). As the construction of the

substations is to contribute to and improve public services. Dalkia Jiamusi did not need to pay for

the occupied state-owned land according to relevant policies of Jiamusi. Detailed information is

shown in Table 2:

Table 2 - Statistics on Substations Occupancy

No. Location

Floor

area

(m2)

Using

existed

basement

Using

existed

HOBs

Period of

connection

Was it newly built?

(Neither use

basement nor

original boiler

house)

Source of

newly-built

substation’s land (Does it transfer by

government in

free? Supply by

developer in free?

Or other reasons)

1 Guo Maitong

Sub. 80 N Y 2008 N

Free provided by

developers

2 Water

product Sub. 30 N Y 2008 N

Free provided by

developers

3

Shu

Xiangyuan

Sub.

40 N N 2008 Y Free provided by

developers

4 Bo Fan Sub. 756 N Y 2008 N Free provided by

owners

5 Transpotation

Company Sub. 80 N Y 2008 N

Free provided by

developers

6 Sanshine Sub. 30 Y N 2008 N Free provided by

developers

7 Traffic team

Sub. 20 N Y 2008 N

Free provided by

developers

8 No.9 middle

school Sub. 40 N Y 2008 N

Free provided by

school

9

9

Jing Yuan

Mix-water

station


developers

10 Nei Pei Sub. 40 N N 2008 Y Free provided by

developers

11 Da Zhan Sub. 40 N Y 2008 N Free supplied by

PMC

12 Tian Qi Sub.

1# 30 N Y 2008 N

Free supplied by

PMC

13 Tian Qi

Sub.2# 70 N Y 2008 N

Free supplied by

PMC

14 Hui Yuan Sub. 120 Y N 2008 N Free supplied by

PMC

15 Fu Lian Sub. 30 N N 2008 Y Free provided by

developers

16 Heng Ji Sub. 120 Y N 2008 N Free supplied by

PMC

17 Pu Ruite

Boiler House 50 N Y 2008 N

Free supplied by

PMC

18 Fire Control

branch Sub. 60 N Y 2008 N

Free provided by

Fire control branch

19 Yuandong

Yanjiang Sub. N N 2009

N Took advantage of

own substation (Used the original

sub.)

20 Zhong Fang

Sub. 88.44 N Y 2009 N

Free supplied by

PMC

21 Fu Tai Sub. 189.06 N Y 2009 N Free supplied by

PMC

22

Outskirt

agricultural

machinery

Sub.

32.14 N Y 2009 N

Free supplied by

agricultural

machinery bureau

23 Ji Xing Sub. 20.48 N Y 2009 N Free supplied by

PMC

24

North

residential

Sub.

66.13 Y N 2009 N Free supplied by

PMC

25

Yong Hong

Traffic branch

Sub.

34.62 N Y 2009 N Free supplied by

PMC

26 Xu Fu garden

Sub. 73.47 N Y 2009 N

Free supplied by

PMC

27 Hotel Sub. 40.2 N Y 2009 N Free supplied by

hotel

28 Fuli Qianjia

Sub. 80 N N 2009 Y

Free provided by

developers

29 Technology

School Sub. 48 N N 2010 Y

Free provided by

developers

30

No.10

primary

school Sub.


developers

31

Fu Xing

residential

Sub.

Installation

24 N N 2010 Y Lease

10

32

Education 6#

residential

Sub.

60 N Y 2010 N Free supplied by

PMC

33

Outskirt

Labor Service

Sub.


developers

34 KOKO family

building Sub. 60 N Y 2010 N

Free supplied by

PMC

35 Electricity

Power Sub. 48 N N 2010 Y

Free provided by

developers

36 Xin Da Sub. 30 N N 2010 Y Free provided by

developers

37 Cheng Jian

Sub. 60 N N 2010 Y

Free provided by

developers

38 Education Jizi

building Sub. 60 N Y 2010 N

Free supplied by

PMC

39

Outskirt

Council of

Agriculture

Sub.


developers

40 Tang Fu

garden Sub. 40 N N 2010 Y

Free provided by

developers

41 Jia He 1# Sub. 80 N Y 2010 N Free supplied by

PMC

42 Sanjiang Gree

Sub. 80 Y N 2010 N

Free supplied by

PMC

43

Deng Feng

district gvt

Sub.


PMC

44 Hui Xinyuan

Sub. 30 N N 2010 Y

Free provided by

developers

45 Chen Xing

Sub. 50 N Y 2010 N

Free supplied by

PMC

46

Electrical

Machinery

Plant Sub.

24 Y N 2010 N Free supplied by

PMC

47 Hai Ge Sub. 30 N Y 2011 N Free supplied by

PMC

48 Hong An Sub. 60 Y N 2011 N Free supplied by

PMC

49

Hong Da

commercial

center Sub.


PMC

50 the north of

Hongda 15 N N 2011 Y

Free transferred by

government

51

Second

campus Sub.

For No.1 high

school


school

52 Bus company

Sub. 40 N Y 2011 N

Free supplied by

PMC

53 Xing Hua Jie

Kun 30 N Y 2011 N

Free supplied by

PMC

54 Hua Qiao

Hotel Sub. 24 N N 2011 Y

Free supplied by

PMC

11

55 Xin Bao Sub. 24 N Y 2011 N Free supplied by

PMC

56 Price Bureau

Sub. 80 N Y 2011 N

Free supplied by

PMC

57

Children

warfare

institute Sub.

80 N N 2011 Y Free supplied by

institute

58 Xing Hua Sub. 30 Y N 2011 N Free supplied by

PMC

59 Shunt family

building Sub. 32 N N 2011 Y

Free supplied by

PMC

60 Fruit product

Sub. 24 N Y 2011 N

Free supplied by

PMC

61 Animal

Market Sub. 20 N Y 2011 N

Free supplied by

PMC

62 Dong Feng

Sub. 18 N Y 2011 N

Free supplied by

PMC

63 Tong Fu

garden Sub. 60 N N 2011 Y

Free provided by

developers

64 Hong Da Sub. 80 N Y 2011 N Free supplied by

PMC

65

Education 5#

residential

Sub.

20 Y N 2011 N Free supplied by

PMC

66 Jiongchang

Shiye Sub. 40 Y N 2011 N

Free supplied by

PMC

3、Employment of Workers From Connected Small Boiler

From 2008 to 2011, there were 102 small boilers houses connected. 659 affected workers are male,

and 30 are females including 191 of non-temporary employees, and 468 of seasonal employees.

Before the connection, their average wage per month was RMB 1,062; and after the connection it is

RMB 1,385. Rights and interests for these laborers were ensured as these employees were provided

with strong support for re-employment. The measures taken for the employees are as follows:

3.1 Measure A: 22 fixed employees worked for PMC before connection. These employees already

have a position such as security guard and maintainer. Because of seasonal demand, they were

assigned as stokers for the operation and maintenance of small boilers in winter. According to the

local policies, after connection, these people no longer need to work in the boilers, but still work for

PMC. No laid-off workers.

3.2 Measure B: 78 fixed stokers were assigned to work in other boilers. According to the local

policies, small boiler houses must to be connected to centralized heating network; but because of

insufficient heat source due to the urbanization development or because Dalkia Jiamusi’s current network does not reach certain areas yet, therefore the local government allows the construction of

regional centralized boiler houses. These stokers are usually technicians (with certification) and

were assigned to work in other boilers by developers. Work is stable, and income is higher compare

to before. According to the survey and consultation of some workers, they are satisfied with their

employment arrangement.

12

3.3 Measure C: 71 fixed employers (incl. 15 female employees) are hired by school, government and

public enterprises. After connection, according to the Labor Law of PRC, they were assigned to new

positions such as security guard, cleaner… by their original units, without changing salary, insurance and welfare.

3.4 Measure D: For the 468 seasonal employees, according to the Employment Contracts Law (2008)

and Labor Law of PRC (1994), fixed term labor contracts were signed between the employees and

the employers. These seasonal employees work from October to April (heating season). After the

heating season, the contracts are automatically terminated. After the heating season, the

government will inform the units which will be connected to the centralized heating system; the

units will thus not go to the labor market to employ seasonal employees. The local government set

up labor market divided into administrative districts to provide better and more information

regarding re-employment opportunities for seasonal workers.

3.5 Measure E: 50 full-time workers (incl. 15 female employees), who were near the retirement age,

were entitled to advanced retirement based on the voluntary application according to rule of Labor

Law of PRC.

Table 3 - Employment of Workers of HOBs Connected 2008-2011

No. Unit

Related

Heated

area by

HOBs

m2

Workers Affected Status of

workers

Average

monthly

wages

before

connecti

on

(RMB)

Arrangement for

employment after

connection

(whereabouts,

compensation)

Average

monthly

wages

after

connecti

on

Am

oun

t

Male Fema

le

Avera

ge

age

Fixe

d

Casua

l

1 Tian Qi 1# 12401 5 5 - 45 1 4 1040

Measure A; JMS

Yangguang PMC

1350 Employees

compensated for four

months wages

2 Tian Qi 2# 59460 10 8 2 42 1 9 1020

Measure A; JMS

Yangguang PMC

1400 Employees

compensated for six

months wages

3

Guo

Maitong

residential

34887 5 5 - 40 1 4 1040

Measure C;

Guomaitong Company

1300 Employees


months wages

4

Water-prod

uct Zong He

builidng

15051 4 4 - 49 1 3 1050

Measure A; JMS

Yangguang PMC

1450 Employees

compensated for three

months wages

5

Shu

Xiangyuan

residential

36939 10 9 1 44 1 9 1020

Measure A; JMS

Yangguang PMC

1300 Employees

compensated for seven

months wages

13

6 Xin Da 1# 8455 4 4 - 51 1 3 1050

Measure E; Advanced

retirement

1300 Employees

compensated for five

months wages

7 Tian Fa

residential 10099 5 5 - 49 1 4 1040

Measure A; Xing Ye

PMC

1500 Employees


months wages

8

Transporta

tion

Company

14757 5 5 - 49 1 4 1040

Measure C;

Transportation

company 1350

Employees


months wages

9 Yan Jiang

residential 15476 5 5 - 50 1 4 1040

Measure E; Advanced

retirement

1400 Employees


months wages

10 Sunshine

residential 11169 5 5 - 52 1 4 1040

Measure E; Advanced

retirement

1300 Employees


months wages

11 Xin Cheng

residential 19514 5 5 - 52 1 4 1040

Measure E; Advanced

retirement

1450 Employees


months wages

12 Hui Yuan

residential 15025 5 5 - 54 1 4 1040

Measure E; Advanced

retirement

1300 Employees


months wages

13

Dong Feng

traffic

branch

5000 5 5 - 46 1 4 1040

Measure A; JMS

Yangguang PMC

1300 Employees


months wages

14

No.9

middle

school Zong

He building

11898 5 5 - 45 1 4 1040

Measure C No.9 middle

school

1500 Employees

compensated for six

months wages

15

Shi Yan

kindergarte

n

10074 5 5 - 49 1 4 1040

Measure C;

Kindergarden

1350 Employees


months wages

16 Cable

factory 10542 5 5 - 50 1 4 1040

Measure E; Advanced

retirement

1400 Employees


months wages

14

17

Qian Jin

district

people's

court

3339 3 3 - 55 1 2 1067

Measure E; Advanced

retirement

1400 Employees


months wages

18 Mo Fan

residential 44162 12 11 1 43 4 8 1067

Measure A; San Tong

PMC

1300 Employees


months wages

19

Training

center for

wonmen

and

children

9560 4 4 - 55 1 3 1050

Measure E; Advanced

retirement

1450 Employees


months wages

20

Conmustio

n engine

residential

22300 10 9 1 51 1 9 1020

Measure E; Advanced

retirement

1300 Employees


months wages

21

No.7

middle

school

5779 4 4 - 53 1 3 1050

Measure C No.7 middle

school

1300 Employees


months wages

22 Jing Yuan 15160 5 5 - 55 2 3 1080

Measure E

1400 Employees


months wages

23 Trade

center 6719 5 5 - 56 2 3 1080

Measure E

1500 Employees

compensated for six

months wages

24 Heng Ji 39521 10 9 1 47 7 3 1140

Measure B Boiler

house

1500 Employees


months wages

25 Zhongshan

Mingyuan 66403 16 15 1 45 7 9 1088

Measure B 3 persons

1300 Employees


months wages

26 Jixing 1# 18618 5 5 - 48 2 3 1080

Measure A San Tong

PMC

1350 Employees


months wages

27 Fire control

branch 13432 4 4 - 50 1 3 1050

Measure C fire control

branch

1350 Employees


months wages

28

Municipal

governmen

t 1,2#

13800 5 5 - 56 2 3 1080

Measure E; Advanced

retirement

1450 Employees


months wages

15

29

Party

school Zong

He building

6334 4 4 - 54 1 3 1050

Measure C Party school

1400 Employees

compensated for six

months wages

30

No.1 high

residential

building

12021 5 5 - 53 2 3 1080

Measure C No.1 high

school

1400 Employees


months wages

31

Yong Hong

traffice

branch Ji Zi

building

9831 5 5 - 52 2 3 1080

Measure C Yong Hong

traffic branch

1350 Employees


months wages

32 Ji Yun 8581 5 5 - 55 2 3 1080

Measure E

1450 Fixed employees


months wages

33 Chang An

square 40739 20 18 2 43 6 14 1060

Measure B Boiler

house

1450 Employees


months wages

34

Postal

service

Zong He

building

5224 5 5 - 54 2 3 1080

Measure C postal office

1450 Employees


months wages

35

Outskirt

agricultural

machinery

bureau

9790 5 5 - 52 2 3 1080

Measure C Outskirt

agricultural machinery

bureau 1300

Employees


months wages

36 Jiamusi

hotel 22322 5 5 - 47 2 3 1080

Measure C JMS hotel

1300 Employees


months wages

37 Xue Fu

garden 24781 5 5 - 46 2 3 1080

Measure A San Tong

PMC

1500 Employees


months wages

38 Zhong Fang

big world 38329 5 4 1 43 2 3 1080

Measure A San Tong

PMC

1500 Employees


months wages

39 Ji Xing Zong

He 18618 10 9 1 49 2 8 1040

Measure A San Tong

PMC

1300 Employees


months wages

40 North

residential 30131 5 5 - 40 2 3 1080

Measure B Boiler

house

1350 Employees


months wages

16

41 Bearing

plant 38052 10 9 1 45 3 7 1060

Measure B Boiler

house

1350 Employees


months wages

42 Fu Xing 22089 10 10 - 58 3 7 1060

Measure E

1450 Employees

compensated for six

months wages

43 Yuan Dong

Yan Jiang 41199 10 9 1 48 3 7 1060

Measure B Boiler

house

1400 Employees


months wages

44 Yuan Dong

grain depot 50004 18 17 1 47 3 15 1033

Measure B Boiler

house

1400 Employees


months wages

45 East of beer

brewery 26710 10 10 - 49 2 8 1040

Measure B Boiler

house

1350 Employees


months wages

46

South of

beer

brewery

7440 3 3 - 51 1 2 1067

Measure C beer

brewery

1450 Employees


months wages

47 Xing Cheng 12432 5 5 - 52 3 2 1120

Measure A PMC

1500 Employees


months wages

48 stomatologi

cal hospital 22193 5 5 - 51 3 2 1120

Measure C

stomatological hospital

1500 Employees


months wages

49 Fuli Qianjia 47626 15 15 - 46 3 12 1040

Measure B Boiler

house

1400 Employees


months wages

50 Sausage

company 4243 5 5 - 53 3 2 1120

Measure C hotel

1400 Employees


months wages

51 Yu Long

company 5196 3 3 - 54 1 2 1067

Measure C Yu Long

Company

1300 Employees


months wages

53 Dong Feng

court 1657 1 1 - 52 1 - 1067

Measure C Dong Feng

court

1450 Employees


months wages

17

52 Sen Yu 25869 5 5 - 45 3 2 1120

Measure B Boiler

house

1300 Employees


months wages

53 Education

6# 31447 5 5 - 51 3 2 1120

Measure C Education

bureau

1300 Employees


months wages

54 He Ping AB

building 15601 5 5 - 57 3 2 1120

Measure E; Advanced

retirement

1400 Employees


months wages

56 Cheng Jian

Zong He 13329 5 5 - 56 3 2 1120

Measure E; Advanced

retirement

1500 Employees


months wages

57 Ji Zi

building 14785 5 5 - 54 3 2 1120

Measure C Education

bureau

1500 Employees


months wages

58

Outskirt

labor

service

12107 5 5 - 52 3 2 1120

Measure C Outskirt

labor service

1300 Employees


months wages

59 Dong Fang

garden 4# 7765 3 3 - 53 1 2 1067

Measure B Boiler

house

1350 Employees


months wages

60 Mu

Gongshang 16948 5 5 - 50 3 2 1120

Measure A PMC

1350 Employees


months wages

61

Outskirt

committee

of

agriculture

19405 5 5 - 51 3 2 1120

Measure C; Outskirt

committee of

agriculture 1450

Employees

compensated for six

months wages

62

Tang Fu

garden

(Peng Ji 3#)

62465 20 18 2 40 2 18 1020

Measure B Boiler

house

1350 Employees


months wages

63

Dong Feng

district

governmen

t

10732 5 5 - 45 1 4 1040

Measure B Boiler

house

1400 Employees


months wages

18

64 HuiXinyuan

2# 59476 15 14 1 58 2 13 1027

Measure E; Advanced

retirement

1300 Employees


months wages

65 San Jiang 24199 5 5 - 48 2 3 1080

Measure B Boiler

house

1450 Employees


months wages

66 Xing Chen

residential 34791 5 5 - 47 2 3 1080

Measure B Boiler

house

1300 Employees


months wages

67 Yongan

residential 90403 20 18 2 49 2 18 1020

Measure B Boiler

house

1300 Employees


months wages

68

Power

Zong He

builidng

3476 3 3 - 51 1 2 1067

Measure C Electrical

Power bureau

1500 Employees


months wages

69

Electrical

Power

bureau

residential

9029 4 4 - 52 2 2 1100

Measure C Electrical

Power bureau

1350 Employees


months wages

70 Antong

property 40000 10 9 1 47 2 8 1040

Measure B Boiler

house

1400 Employees


months wages

71

Justice

bureau

residential

10569 5 5 - 52 1 4 1040

Measure E; Advanced

retirement

1300 Employees


months wages

72 Xin Da 2# 14306 5 5 - 53 1 4 1040

Measure E; Advanced

retirement

1450 Employees


months wages

73 Zhongfang

Yijing 16288 5 5 - 53 1 4 1040

Measure A PMC

1300 Employees


months wages

74 Xing

Xiayuan 12460 5 5 - 51 1 4 1040

Measure B Boiler

house

1300 Employees


months wages

19

75 Hong An 32055 10 9 1 57 3 7 1060

Measure E; Advanced

retirement

1500 Employees


months wages

76 Tong Fu

family land 36482 5 5 - 51 1 4 1040

Measure A PMC

1350 Employees


months wages

77

Planning

institute

residential

16381 5 5 - 51 1 4 1040

Measure C planning

design institute

1400 Employees


months wages

78 Xing Hua

residential 16451 5 5 - 49 1 4 1040

Measure B Boiler

house

1400 Employees


months wages

79

No.2

primary

school

4157 3 3 - 55 1 2 1067

Measure C No.2

primary school

1300 Employees


months wages

80

Shunt

family

building

16411 5 5 - 52 1 4 1040

Measure C Shunt family

building

1450 Employees

compensated for six

months wages

81 Hua Qiao

Hotel 26009 6 6 - 51 1 5 1033

Measure C Hua Qiao

hotel

1300 Employees


months wages

82 Tongyuan

Haige 6908 5 5 - 51 4 1 1160

Measure A PMC

1300 Employees


months wages

83

Bus

company

residential

building

39884 10 9 1 49 2 8 1040

Measure C bus

company

1400 Employees


months wages

84 Ru Yi 8918 5 5 - 52 1 4 1040

Measure C Ru Yi

building

1500 Employees


months wages

85 Xinghua

Jiekun 12859 5 5 - 47 3 2 1120

Measure B Boiler

house

1500 Employees


months wages

86 Ba yi hotel 3862 3 3 - 48 1 2 1100

Measure C Jiaxi hotel

1300 Employees


months wages

20

87

Fruit

product

Company

17067 5 5 - 47 1 4 1040

Measure C Fruit

product company

1350 Employees


months wages

88 Education

5# 28106 5 5 - 46 1 4 1040

Measure C Education

bureau

1350 Employees

compensated for six

months wages

89 Xin Bao 9007 5 5 - 56 1 4 1040

Measure E; Advanced

retirement

1450 Employees

compensated for nine

months wages

90

Price and

traffice

residential

51792 20 19 1 43 2 18 1020

Measure B Boiler

house

1400 Employees


months wages

91 Animal

market 8259 5 5 - 53 1 4 1040

Measure E; Advanced

retirement

1400 Employees


months wages

92 No. 11 4628 5 5 - 51 1 4 1040

Measure C No.11

middle school

1350 Employees


months wages

93

Dong Feng

distric

policemen

residntial

building

31599 8 5 3 49 1 7 1025

Measure B Boiler

house

1450 Employees


months wages

94 Changchen

g Hotel 1971 2 2 - 54 1 1 1100

Measure C Changcheng

hotel

1450 Employees


months wages

95 Hua Gong

builidng 9# 6975 5 5 - 48 1 4 1040

Measure B Boiler

house

1450 Employees


months wages

96

Hong Da

golden

triangle

95920 20 18 2 45 3 17 1030

Measure B Boiler

house

1300 Employees


months wages

97

Hong Da

commercial

center

78328 20 18 2 43 3 17 1030

Measure B Boiler

house

1300 Employees


months wages

21

98

the second

campus of

No.1 high

school

18287 5 5 - 48 1 4 1040

Measure C No.1 high

school

1350 Employees


months wages

99

Ocean

Wave

Palace

19729 5 5 - 44 1 4 1040

Measure C PMC

1350 Employees


months wages

100 Harvest

residential 30546 10 10 - 46 3 7 1060

Measure B boiler house

1450 Employees


months wages

101

Children

welfare

association

11928 5 5 - 50 1 4 1040

Measure C Department

of Civil Affairs

1400 Employees


months wages

102 NSA 1030 2 2 - 44 1 1 1100

Measure C NSA

1400 Employees

compensated for six

months wages

Note: Compensations are provided directly by original employing units.

4、Conclusions

4.1 The office area of Dalkia (Jiamusi) is rent (5,000 sq. meter of floor area), and is located in 82-1,

Heping road, Qianjin district; terms of tenancy is 10 years.

The Chinese partner contributed to the JV with the former J(C’s boilers houses, network and substations. Dalkia Jiamusi is the owner of all these assets and no land occupancy and resettlement

issues were raised.

4.2 Land occupancy for the planned new-build heat source. This land was granted by Jiamusi local

Government to the West Cogeneration. It is an empty land at present, but can be used as ash storage

by the West Cogeneration. The local government granted Dalkia Jiamusi with the right to use this

land and Dalkia Jiamusi will have to pay land-transferring fees to government.

4.3 New primary pipelines are built along the road. Dalkia Jiamusi needs to pay road digging costs

and road recovery expenses to the municipality. Dalkia Jiamusi is not involved in any land reception

and resettlement problems in the process of pipelines construction.

4.4 Among the 66 new-built substations, there are 10 substations which used the existed basements

of buildings, 35 substations which used the location of the dismantled connected small boiler

houses, 19 substations which used the land freely supplied by related property management

companies or municipal government, 1 substation for which location is leased and 1 substation

which used the original location of a substation (agreed with the owner).

22

As the construction of the substations is for public services, thus according to the related policies,

Dalkia Jiamusi did not have to pay any costs for the land use.

4.5 From 2008 to 2011, Dalkia Jiamusi connected 102 small boiler houses. Affected workers amount

to 689 people and re-employment arrangements and support plans were provided. Local

government bureaus and Dalkia Jiamusi worked closely together to address the re-employment

issues to comply with the China Labor Law.

5、Corrective Plan

5.1 Training on ADB’s policy on resettlement and Social Protection Strategy for capacity building are necessary for the staff, especially at the project company level.

5.2 As of today, because of the lack of heating supply will remain an issue for the heating season

2012-2013, so there is no plan to connect small boiler houses this year. However, if such plan should

be implemented in the future, Dalkia will therefore work closely with all the stakeholders and

prepare a report to address the issue to ADB.

23

6、Appendix

Appendix 1shows the notification for the connection of small boilers issued by Jiamusi heating

office.

Social Due Diligence Report of Dalkia (Jiamusi) Heating ......In the east of Tong Jiang street 302.9...

Documents

Transcript of Social Due Diligence Report of Dalkia (Jiamusi) Heating ......In the east of Tong Jiang street 302.9...