Environmental Impact Assessment Summary Report

For

The Third Liaoning Medium Cities Infrastructure Project

Liaoning Academy of Environmental Sciences

Feb, 2008

Table of Contents

1. General Introduction 3

1.1 Project Background 6

1.2 Assessment Basis 8

1.3 Domestic Requirements for Environmental Assessment 4

1.4 Requirements of Environmental Impact Assessment of World Bank 7

2. Project Summary 8

3 Environment Quality Situation 12

3.1 Heating System Situations in Project Area 12

3.2 District Natural Environment 15

3.3 District Atmospheric Pollution and Environment Sensitive Receptors 20

3.4 Incidence of Respiratory System Diseases 25

3.5 Acoustic Environmental Quality and Sensitive Receptors 25

3.6 Water Environment Quality 28

3.7 Solid Waste Management 29

3.8 Culture Heritage 29

4. Environmental Impact Analysis 31

4.1 Analysis of Positive environmental impact 31

4.2 The analysis of adverse environmental impact during construction 38

4.3 Analysis of Adverse Impact upon the Environment During the Operation 42

5 Comparison of Alternatives 59

6. Environmental Management Plan 62

6.1 Environmental Mitigation Measures and Monitoring Plan 62

6.2 Monitoring Institutional Arrangement 99

7 Strengthening the Environmental Protection Management Organization 102

8 Environmental Management Plan Investment 111

9 Public Consultation and Information Disclosure 112

9.1 Public Consultation 112

9.2 Information Disclosure 116

10 Conclusion 122

10.1 Need of the Project 122

10.2 Key Environmental Issues 122

10. 3 Positive Environmental Impacts 123

10.4 General Conclusion 123

1. General Introduction

To strengthen the infrastructure construction, improve the heating service quality, solve the regional environmental pollution problem and increase people’s living standard, Liaoning Provincial Government is planning to enhance the infrastructure construction under the Third Liaoning Medium Cities Infrastructure Project (LMC3) to be partially financed by the World Bank. This project has been included in the Chinese Government program for utilizing the loan from World Bank in 2006. The project includes construction of district heating infrastructure works in 6 cities such as Anshan, Fushun, Benxi, Liaoyang, Yingkou and Huludao. Totally included are 11 sub-projects after the primary screening and identification. The total investment of this project is about 2,79945 billion RMB Yuan, equivalent to USD 373,26million, of which187 million US dollars will be from the World Bank, and the rest will be covered by the local governments .

Please refer to Table 1-1 for the description of the sub-projects

Table 1-1 Description of LMC3

Cities / Contents / Investment
(USD 10,000)
Project name / Project description
Anshan / Central Heating Project in the North of Yongan Road Tiedong Haicheng City / 1.  Heating area 3.197 million m2
2.  Building size of the heat source plant: 3×58MW hot water boilers
3.  New construction of 19.63km of trunk pipeline network and 75.25km of second-level pipeline network,
4.  New construction or upgrading of 26 heat exchange stations. / 2715
Fushun / Heating Network Construction of Heating Unit Expansion for Fushun Electric Generation Plant / 1.  Heating area 7.07 million m2
2.  New construction of 30km of trunk pipeline network.
3.  New construction or upgrading of 63 new heat exchange stations. / 2762
Benxi / Central Heating Project in Nanfen District, Benxi City / 1.  Heating area 1.314 million m2
2.  Building size of the heat source plant: 3×29MW hot water boilers
3.  New construction of 17.37 km of trunk pipeline network.
4. New construction or upgrading of 13 heat exchange stations / 1421
Central Heating Project for Benxi Iron & Steel Thermal Development Company / 1.  Heating area 4.98 million m2
2.  Heat Supply Extension and Upgrading Projects of Benxi Iron & Steel Electric Generation Plant (construction of stage-one pump station, a backwater booster pump station, new construction or upgrading of 12.652km of pipeline)
3.  Rehabilitation Project of Coking Heat Network (new construction or rehabilitation of 14.752km of pipeline)
4.  Waste Heat Using Project of Benxi Iron & Steel Blast Furnace 5#/and 6# ( new construction of 1slag-flushing water treatment plant and a pump station, and new construction or rehabilitation of 14.269km of pipeline) / 3695
Phase ⅡCentral Heating project in Benxi City / 1. Heating area7.1339 million m2
2. Three heat source plants: Caitun Heat Source Plant, building size 2×58MW circulating fluidized bed boilers; Xihu Heat source Plant, building size 3×58MW hot water boilers; Wolong Heat Source Plant, building size 2×29MW hot water boilers
3. New construction of 34.686km of trunk pipeline network
4.  New construction of 45 heat exchange stations / 6613
Yingkou / Central Heating Project in Dashiqiao District in Yingkou City / 1.  Heating area 4.943 million m2
2.  Three heat source plant: Caitun Heat Source Plant 2×64 MW circulating fluidized bed, Xihu Heat Source Plant 3×58 MW water boiler;Wolong Heat Source Plant 2×29 MW hot water boiler.
3.  New construction of 33.56 km of trunk pipeline network.
4.  New construction of 45 heat exchange stations ) / 3182
Huaneng Central Heating Project Phase I in North Part of Yingkou / 1.  Heating area 9.5962 million m2
2.  New construction of 98.2km of trunk pipeline network
3.  Construction of 83 heat exchange stations ( continue use of 40 existing station, rehabilitation of 20, retrofitting of 20, construction of 3) / 5854
Central Heating Network Project in Yingkou Economic Development Zone / 1. Heating area 1042.38 m2
2.  New construction of 84.586km of trunk pipeline network and of 70 km secondary pipeline network
3. New construction or rehabilitation of 77 heat exchange stations and a relay pump station. / 5567
Rehabilitation and Expansion Project for Gas Facilities of Yingkou City / 1.  Overhauling and new construction of the gas storage tanks in the gas source plant(overhauling of 2 wet storage tanks, new construction of a dry storage tanks)
2.  Construction of intelligent gas management system
3.  Upgrading of the pipeline network system (upgrading of 10 km gas supply pipeline, and about 50km medium or low-pressure pipeline, construction of 14km medium pressure pipelines) / 1105
Liao
yang / Central Heating Project in Gongchangling District in Liaoyang City / 1.  Heating area 3.1365 million m2
2.  Building size of the heat source plant: 3×58MW hot water boilers
3.  37.56km of newly built trunk pipeline network
4.  New construction of 16 heat exchange stations
5.  New construction of a relay heat exchange stations
6.  New construction of a relay pump station / 2724
Huludao / Central Heating Project in Yangjiazhangzi Mining Area / 1.  Heating area of 1.4435 million m2
2.  Building size of the heat source plant: 3×29MW hot water boilers
3.  New construction of 12.77km of trunk pipeline network
4.  New construction or upgrading of 13 heat exchange stations / 1776
Total: / - / 37326

The primacy chapters to be discussed in this summary report are as following:

● Project Background

The relevant policies issued by Liaoning province and the present situations of supply of heat and gas in the central cities of Liaoning province are presented in this chapter.

● Base of Assessment

The laws, codes, technical guidelines and assessment standards to be followed in this environmental assessment are introduced in this chapter.

● Project Summary

The summaries of the 11 sub-projects of the LMC3 are introduced here.

● Present Situations of Environmental Quality

Present situations of atmospheric pollution and environment-sensitive targets

Quality of acoustic environment and present situations of sensitive receptors

Present situations of the quality of water environment

Management of solid wastes

Cultural property

●  Environmental impact analysis

Analysis of positive environmental impact

Analysis of adverse environmental impact during construction period

Analysis of adverse environmental impact during operating period

●  Comparison of Alternatives

●  Environmental management plan

Environmental impact mitigation measures

Environmental monitoring plan

Arrangement of environmental monitoring institutions

●  Strengthening of environmental management institutions

●  Investment of environmental management plan

●  Public consultation and information disclosure

●  Conclusion for the summary

This summery is provided to the World Bank, National Development and Reform Committee of PRC, Liaoning Provincial Government, Development and Reform Committee of Liaoning Province, Environmental Protection Bureau of Liaoning Province, Development and Reform Committees and Environmental Protection Bureaus of the project cities, the construction units of the projects, and the public affected.

1.1 Project Background

1.1.1 Relevant policies of Liaoning Province

Liaoning Provincial Government has been supportive of the application for the World Bank loan which will be used for funding the sub-projects. A coordination group for the implementation of LMC3 to use the World Bank loan has been organized by the General Office of Liaoning Provincial People’s Government, which is primarily in charge of examining and determining the master plan, organizing and coordinating the implementation of initiatives to address key problems encountered in the development of policies, and institutions. The group consists of representatives from Liaoning Provincial Government, Financial Department of Liaoning Province, Liaoning Provincial Environmental Protection Bureau, Construction Department of Liaoning Province, Liaoning Provincial Price Bureau, Development and Reform Commission of Liaoning Province, Price Control Administration of Liaoning Province, Department of Audit of Liaoning Province, the Land and Resources Department of Liaoning Province. The Office of Utilizing the Foreign Capital and Urban Construction is in charge of the daily management under the leadership of the coordination group.

Table 1-2 Issues concerning heat and gas supply in the various midland cities

Projects / Cities / Name of Project / District or local heating situation
Current
situation of heat
supply / Anshan
(Hai
cheng) / Central Heating Project in the North of Yong’an Road Tiedong District Haicheng City / (1)A Large number of scattered small boiler rooms with small capacity, low heating efficiency, serious energy loss and environmental pollution, excessive working loads for operators.
(2)Most of the boiler are running under overload without meeting heating supply requirements. The number of houses with an indoor temperature ranging from 10 to 14℃ within the service area accounts for 30% of the total.
(3)Too simple smoke and dust removal equipment, absent of desulphurization devices, severe environmental pollution; piping network out of repair, water loss rate up to 4%~8%; the pipelines are elevated over the urban districts in some cities, which cause passive impact on the landscape..
(4)the service areas are not reasonably planned, leading to overlapping of the service area to be serviced by different plants.
(5)Numerous of small heating enterprises with poor management and service.
Fushun / Heating network Construction of Heating Unit Expansion for Fushun Electric Generation Plant
Benxi / Central Heating Project in Nanfen District Benxi City
Central Heating Project for Benxi Iron & Steal Thermal Development Company
Phase Ⅱ Central Heating Project of Benxi City
Liao
yang / Central Heating Project in Gongchangling District Liaoyang City
Ying
kou / Central Heating Project in Dashiqiao District Yingkou City
Central Heating Network Project in Yingkou Economic Development Zone
Huaneng Central Heating Project in North Part of Yingkou
Hulu
dao / Central Heating Project in Yangjiazhangzi Mining Area
Current
situation of gas supply / Ying
kou / Rehabilitation and Expansion Project for Gas Facilities of Yingkou City / (1)Natural gas pipelines are not well repaired and maintained for the past 30 years. Particularly after the impressed current cathodic protection system for the pipeline were removed in 1990’, the degradation of the pipelines has be enhanced, which leads to a serious leakage of the gas. In some are, the pipeline can merely transmit the gas under low pressure, which consequently neither meet the requirement of gas transfusion nor reduce the operational cost.
(2) There are two wet gas storage tank with the capacity of 20,000 m3 and 50,000 m3 respectively, which were put in use in 1989 and 1995 without any overhaul in the gas source plant.
(3)The medium pressure pipeline in Yingkou city has been operating for over 10 years, and the mechanical flexible joints on some sections have get loose with slight leakage. The consequence would be disastrous if the gas spreads to the building or the sewers. In addition, with the constant expansion of urban area, occupation of the buried pipeline by other structures and buried depth changes can be found everywhere. The valve well on the pipeline, and most of the condense cylinders are damaged to various degree.
(4)Besides, Yingkou city is located in Liaohe estuary with low-lying terrain, high acidity and alkalinity and serious chemical and electro-chemical corrosion in some parts. With too limited corrosion proof method, and shortage of electro-chemical countermeasures, auxiliary facilities such as the condense cylinders are being damaged at a rather fast speed, resulting in the increased management cost and safety risks.

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

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

1.1.3 EA Category

According to the World Bank’s safeguard policy, Environmental Assessment OP4.01, this project has been classified into Category B, as it has short construction period, mature and reliable technique, controllable pollutants discharge and the confined scale of environmental impact.

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

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