Annual Environmental and Social Monitoring Report€¦ · Environmental & Social Performance Report (FY2012) LJEP Group Co. Ltd 3 Protection Bureau and Heilongjiang Construction Bureau

Annual Environmental and Social Monitoring Report

This report has been submitted to ADB by the Borrower and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Project Number: LN2627 January to December 2012

PRC: Songhua River Basin Water Pollution Control and Management Project, Private Sector Facility - Phase 1

Prepared by

LJEP Group Co., Ltd.

Annual Environmental & Social Performance Report

Longjiang Environmental Protection Group Co., Ltd.

Harbin·China

April 30, 2013

Reporting Period: January 2012 to December 2012

Report Completion Date: April 30, 2013

Prepared by LJEP Group Co., Ltd.

Disclaimer

The following information is only for reference instead of serving as formal legal documents or any other professional opinions. This report will not guarantee for statements or implications in any form.

This report is drafted by Longjiang Environmental Protection Group Co., Ltd. Unless specially noted, discoveries, instructions and conclusions herein only represent opinions from Longjiang Environmental Protection Group instead of ADB board or its working staff.

Table of Contents I INTRODUCTION ....................................................................................................................... 2

A Background .......................................................................................................................... 2

B Objective .............................................................................................................................. 3

II ENVIRONMENTAL AND SOCIAL MANAGEMENT ............................................................. 4

A ESPR Prepareration ............................................................................................................. 4

B Environmental and Social Responsibility ............................................................................ 4

C1 Overall Staff and Institutional Arrangement .................................................................... 7

C.2 Environmental and Social work plan ............................................................................. 9

III Environmental and social requirements compliance ......................................................... 14

A National requirements compliance..................................................................................... 14

A.1 Quality and Environmental Management System .......................................... 14

A.2 Compliance with Legislative and Regulatory Requirements ........................ 15

A.3 Regular environment monitor inspection ............................................................... 19

A.4 Emerging Environmental and Social Issues .................................................... 26

B Compliance with ADB Safeguards Requirements ............................................................. 27

IV PROGRESS OF ONGOING SUBPROJECTS/ACTIVITIES............................................. 28

V Summary of safety performance and corrective action ..................................................... 33

VI Sustainable Development Activities and Exchange ........................................................... 35

A Sludge Treatment Plan ....................................................................................................... 35

B Corporation Social Responsibility Report ......................................................................... 37

Annex 1 ............................................................................................................................................. 38

Annex 2 ............................................................................................................................................. 41

Annex 3 ............................................................................................................................................. 43

Annex 4 ............................................................................................................................................. 48

Environmental & Social Performance Report (FY2012) LJEP Group Co. Ltd

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GLOSSORY OF TERMS & ACRONYMS

A2/O Anaerobic-Anoxic-Oxic Biochemical Reactor Process

CASS Cyclic Activated Sludge System

CSRR Corporation Social Responsibility Report

EA Executing Agency

EIA Environmental Impact Assessment

EMP Environmental Management Plan

EPB Environmental Protection Bureau

ESMS Environment al and Social Management System

ESPR Environmental and Social Performance Report

ESA Environmental and Social Affairs

ESU Environmental and Social Unit

IPP Indigenous People Plan

IRP Involuntary Resettlement Plan

LJEP Longjiang Environmental Protection Group Co., Ltd.

QEMS Quality and Environmental Management System

SBR Sequencing Batch Reactor

SEPA State Environmental Protection Agency

SHMP Safety and Health Management Panel

SIA Social Impact Assessment

SMI Safety Management Institution

SRB Songhua River Basin

TTWE Tsinghua Tongfang (Harbin) Water Engineering Co., Ltd.

WWTP Wastewater Treatment Plant


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ENVIRONMENTAL & SOCIAL PERFORMANCE REPORT

ESPR (2012)

Reporting Period: January 2012 to December 2012

Report Completion Date: April 30, 2013

I INTRODUCTION

A Background

1. Longjiang Environmental Protection Group Co., Ltd. (hereinafter referred to as “Longjiang Environmental Protection”), with its predecessor Qinghua Tongfang (Harbin) Water Affairs Co., Ltd. established in May, 2004 (hereinafter referred to as “Tongfang Water Affairs”), is a shareholding company mainly engaged in water affairs environment protection project investment, construction and operation and owns living sewage level A operation qualification issued by P.R.C Ministry of Environmental Protection. In order to introduce strategic cooperation partner, get listed in the stock market and issue shares to ADB, Qinghua Holding Co., Ltd and other investors, the company adheres to the people-oriented operation ideas to serve the society and actively perform social responsibilities by relying on environment management system. Through close cooperation with Heilongjiang Provincial Committee and government and various regional Committees and governments, the company is committed to resolving long-term water pollution and worsening water quality issues in Heilongjiang, SRB based on public services privatization in multiple forms, e.g. BOT, TOT, cooperation construction and other franchised operation mode.

2. During the 11th five-year plan,, Longjiang Environmental Protection undertook more than 70% water environmental emission reduction assignment in Heilongjiang Province, among which, accumulated sewage disposal within 0.42 billion ton, cut COD 110,000 ton in the capital city Harbin. By the end of 2011 , invested and operated nearly 30 sewage disposal plants, faucet water company, etc, with total disposal capacity 2,600,000 m3/day; the total investment for the last 7 years approached 5 billion Yuan.

3. Based on the water affairs sector and expanding water affairs market, the company is hanging on to the favorable opportunity of environmental protection industry upgrade fully implemented by the national government, accelerating the pace of deeply extending to the environmental protection sector and committed to operating frontline environmental protection project, including low-carbon economy, renewable resources development and recycling advocated by the government. In line with the continued cooperation and development strategy, in order to further enhance operation performance of urban water supply, drainage, sludge disposal facilities, increase the recycling capacity of abandoned appliance, electronic product, dismantled auto parts and improve the urban living environment, in 2010, Longjiang Environmental Protection Group and Heilongjiang Provincial Government signed Investment Strategy Cooperation Agreement on Water Affairs Project and Sewage Disposal Plant in the Key Tourist Towns of Heilongjiang Province; in 2012, the company signed Strategic Cooperation Agreement on Water Affairs and Recycling Project in Heilongjiang Province with Heilongjiang Provincial Environmental


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Protection Bureau and Heilongjiang Construction Bureau.

4. In 2012, there were 3,836 urban wastewater treatment facilities in operation in China, with a total designed treatment capacity of 149 million cubic meters/day and average daily treated wastewater amount of 116 million cubic meters. In 2012, there were 65 urban wastewater treatment facilities in operation in Heilongjiang, with a total designed treatment capacity of 3.1052 million cubic meters/day and average daily treated wastewater amount of 1.8175 million cubic meters, of which the total designed treatment capacity of the water factories under Long Jiang Environment Protection Group Share Company was 2.015 million cubic meters/day and average daily treated wastewater amount was 1.0814 million cubic meters.

5. Harbin Taiping Wastewater Treatment Plant is the first wastewater treatment project of Long Jiang Environment Protection Group Share Company and was officially put into operation in December 2005. By the end of 2012, 14 wastewater treatment plants had been obtained, located in Harbin, Mudanjiang, Jamusi, Jixi, Heihe, Zhaodong, Fujin, Anda and Ning’an respectively and three water supply companies had been acquired, i.e. For example, Mudanjiang Longjiang Environment Protection Water Supply Company, Jiamusi Running Water Company and Jixi Running Water Company. Of the projects above, by the end of December 2012, 14 wastewater treatment plants (Harbin Taiping, Harbin Wenchang, Harbin Pingfang, Harbin Xinyi, Acheng Phases I, Mudanjiang Phases I, Jiamusi East Region, Jixi, Anda, Zhaodong Phases I and Ⅱ, Heihe Phases I, Ning’an, Fujin and Jiamusi West Region) and all water supply companies (Mudanjiang, Jiamusi and Jixi)had been put into operation. The upgrade transformation of an existing wastewater treatment plant had been at the environmental acceptance stage. (Harbin Taiping and Harbin Wenchang1). The project preliminary design, feasibility study report and environmental impact assessment report of Mudanjiang Wastewater Treatment Project, PhaseⅡ had been completed, ready for construction commencement. Heihe Wastewater Treatment Project, PhaseⅡ had been at the water passing and debugging stage. Acheng PhaseⅡ and Harbin Sludge Disposal had been at the engineering construction stage.

6. For the introduction of ADB equity investment, in 2010, LJEP has obtained direct loan 9,410,000 USD. In the same year, ADB provides RMB loan 0.25 billion RMB.In the near future, ADB about to provide category B joint financing scheme, with total amount 0.1 billion USD (converted into RMB 0.65 billion Yuan). Meanwhile, the disposal plants affiliated with LJEP include two sewage disposal plants with sovereignty loan provided by ADB East Asia Bureau, which are separately Harbin Xinyi Sewage Disposal Plant and Fujin Sewage Disposal Plant. Both of them use ADB public sector loan approved in 20082, constructed by state-owned company and handed over to Longjiang Environmental Protection for operation, maintenance and management.

7. Attachment I provides basic information of sewage disposal plant and water supply company affiliated with LJEP , including the current operation status or different stages governing expansion.

B Objective

8. Environment and social performance report (ESPR) is to disclose the company's implementation of environment and social management system during the report period and compliance with ADB environment and social requirements, its sub-project (or activity)’s adaptation to national and actual local condition and regulations, including environment monitor plan, environment management implementation, stakeholder participation,

1 Harbin Taiping WWTP and Harbin Wenchang WWTP are neighboring with each other. The undergoing project actually is an upgrade to both WWTPs by adding a combination of biofilter and sedimentation treatment. 2 Loan-2487 PRC：Songhua River drainage area water pollution control and management project


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community relation, gender equality, health and occupation safety. In 2011, the ESPR is mainly centered on the implementation of all stages of sub-project (or activity) of LJEP, including:

i. Various sub-project (or activity)'s compliance with environment and social management requirements;

ii. Various sub-project (or activity)'s implementation in terms of environment and social management;

iii. Occupational health and safety performance and major highlights;

iv. Sustainable development programme, and community relations.

II ENVIRONMENTAL AND SOCIAL MANAGEMENT

A ESPR Prepareration

Report prepared by: EASEN International Co., Ltd.

Telephone: +86-451-86036638 / 86036639 (Fax)

Email: [email protected]

Enterprise web site: www.ljep.com.cn

Signature: Piao Yongjian

Date: April 30, 2013

B Environmental and Social Responsibility

9. In order to conform to environment and social management system requirements, LJEP establishes Environment and Social Management Union (ESU) based on the existing organizational structure, a special authority in charge of environment and social affairs management, under the supreme management board, guide and coordinate various departments and sub-projects in terms of environmental and social aspect implementation; connect the governmental function mechanism in charge of environmental and social affairs; disclose related information; interaction and exchange with the community. The following figure shows LJEP’s environment and social management framework structure.


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10. The individuals below (Table 1) hold responsibility for environmental and social performance in the organizational structure of LJEP and at the subprojects/activities sites. All the listed staffs in Table 1-1 are also LJEP’s ESU leading group members who together ensure the corporation performs well in environmental and social front. In Table 1-2 is the list of environmental and social management working groups of each subproject and in Table 1-3 is the list of members of the Environmental and Social Management Office.

Table1-1 Environmental and social Management Leading Group

Headman: Piao Yongjian(CEO)

Deputy Head: Yu Xibo(Standing Deputy CEO)

Liu Song(Deputy CEO, In charge of investment and social affairs)

Zhang Fugui(Deputy CEO, In charge of environmental management)

Members:

Name Department Title Contact Information

Liu Qiang Financial Department General Manager 13845106042

Xu Runzhi Investment Department General Manager 13603656133

Chen Lingjun Human Resource

Department person in charge 13359705598

Dong Peng Chairman office deputy director 18246644777

Liu Wensheng Engineering construction

management department General Manager


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Zhang

Haiyanga Production plan department

deputy general

manager 13704816580

Li Xiaowei Dispatch centre director 13633625641

Wang Naa

Environmental protection

and social management

union person in charge 13946050289

An Jiuhai Mudanjiang LJEP water

supply company

General Manager，

Assistant resident 13836367905

Wang Jingyu Jiamusi water supply

company General Manager 13555422666

Li Xiaoqiang Jixi Running Water

Company General Manager 13604687977

Wang Jie Mudanjiang WWTP General Manager

Factory Director 13904839088

Zhou Qingzhu

Jiamusi LJEP Company

Jiamusi Eastern/Western

WWTP

General Manager

Factory Director 13945460148

Zhu Dejun Jixi Jiguan District WWTP Factory Director 13846009199

Yang Weidong Heihe WWTP Factory Director 13904560953

Guan Fucai Fujin WWTP Factory Director 13945406588

Li Yan Ning’an WWTP Factory Director 13604631588

Ma Kuna Anda WWTP Factory Director 18245988620

He Xiangguo Zhaodong WWTP Factory Director 15246695718

Guan Zhenguo Harbin Xinyi WWTP Factory Director 15804631684

Zhao Feng Harbin Pingfang WWTP Factory Director 13804500256

aaaa

Female employees

Table1-2 Sub-project environmental and social management workgroup list


Shen Xuge Mudanjiang LJEP water

supply company

Minister of Production

Department 13359389838

Guo Hongtu Jiamusi water supply

company



Yan Hua Jixi Running Water

Company



Xu Zhiqiang Taiping WWTP Process owner 18745068950

Sun Yulong Mudanjiang WWTP Process owner 13766601960

Xue Kaijing Jiamusi Eastern/Western

WWTP Office Director 13704545082

Liu Chen Jixi WWTP Process owne 13836559745

Cao Han Heihe WWTP Process owne 13845679425


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aaaa

Female employees

Table1-3 Environmental and social management office members list

aaaa

Female employees

C1 Overall Staff and Institutional Arrangement

11. In the aforementioned organizational diagram and table 1, LJEP will entrust a batch of high qualified staff from various departments to serve as ESU members. All environmental protection and social management leadership personnel and work staff has good professional and academic background (the leadership group boasts of 6 senior engineers, 12 engineers and 5 assistant engineers), in 2012,LJEP conducted at least two internal training concerning environmental and social management plan implementation, In November, the Group employed Dr. Zhou Jian, a consultant from ADB to provide the Environmental and Social Management Department and the Investment Department with training related to ADB’s Safeguard Policy Statement, social management systems and corporate social responsibility. In addition, the Environmental and Social Management Department provided the water factories under the Group with special poisonous chemicals-related training to enhance their ability to purchase, use and manage poisonous chemicals. All members are from LJEP management layer , all function departments and the affiliated branches or water plant; Further more, each of them have the ability to assume the task of management study, policy and management rule formulation and organization authority, implement quality and environmental management system and environmental monitor and information disclosure during implementing social management scheme of all sub-projects (or activity). In order to perform its duties, the ESU recruits 12 staff owning bachelor or master degree in environmental science, environmental engineering, water supply and drainage, chemical analysis, ecology, etc. With rapid expansion of LJEP, in order to strengthen capacity, the ESU needs training. Column 1 shows major assignments and

Zhao Lihong Zhaodong WWTP Process owne 13694621752

Xiao Tie Fuji WWTP Comprehensive

administra 15845151755

Wang Hongbin Anda WWTP Comprehensive

administra 13634890133

Huo Xueyu Ning’an WWTP Process owner 13624631221

Hou Fangzhou Harbin Xinyi WWTP Assistant factory

director 15246695775

Sun Jian Harbin Pingfang WWTP Process owne 15331888029

Shi Shengyu

Harbin Jincheng

Longjianghuanbao

Company


Wang Naa Environmental protection and

social management union person in charge 13946050289

Xu Linghuia Environmental protection and

social management union Assessment Officer 15004541817

Ma Yuntao Quality & Managerial Center deputy director 18845763110

Kang Shuanga Investment Department Project Manager 13703624610

Chen Chao Investment Department Project Manager 13766812433


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duties of ESU.

12. In order to ensure sound management on safety and occupational health, LJEP establishes safety and health management panel (SHMP) from group legal person to all sub-projects. In terms of the company's high-level management, the SHMP is led by chief executive vice president, who is in charge of operation management and directly report to the president. The SHMP consists of representatives from security department, project management department, HR development management department, ESU, finance department and investment department. With regard to sub-project of LJEP, the SHMP is usually composed of sub-project company general manager, deputy general manger, HR principal, safety engineer, technical personnel and safety technicians. All special safety and health personnel have received training on related regulations, rule, articles of association, standard and other governing compulsory regulations and are capable of implementing daily

Column 1. The main tasks and responsibilities of ESU

� The research and formulation of environmental and social policies, laws,

regulations and management aspects.

� Responsible for the preparation of environmental impact assessment (EIA),

social impact assessment (SIA), environmental management plan (EMP),

involuntary resettlement planning (IRP), and indigenous people plan (IPP),

and environmental and social performance report (ESPR) .

� Organizing the completion environmental protection acceptance and

operation qualification and wastewater discharge permit handling of each

project undertaken by the Group Company.

� Supervise and inspect the implementation of the ISO9001-14001 system

and ESMS, to put forward the improvement plan for the deficiency identified.

� Coordinating the environmental projection management and environmental

protection monitoring work of the Group Company.

� Supervision and evaluation of subproject (or activities) on the environmental

and social effect aspects.

� Managing energy-saving and emission-reduction work, organizing the

preparation of annual energy-saving and emission-reduction project plans

and monitoring the implementation of such plans.

� Communication with government function institutions, general public ,ADB,

stakeholders and other personnal; Coordinate social relations; Information

disclosure and resolve complaints, In response to environmental and social

questions.


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management.

C.2 Environmental and Social work plan

13. In the reporting period, LJEP mainly focused its environmental and social efforts on implementation and upgrade of its certified Quality and Environmental Management System (QEMS based on ISO 9001-14001); enforcement of ESMS according to ADB’s requirements and integrating it into existing system; environmental monitoring and reporting; public relationships related to environmental and social affairs; relevant trainings for environmental and social staff; safety and occupational health care; development and adoption of innovative technologies in wastewater and sludge treatment.

14. In 2011, LJEP Function Departments, major environmental and social work is classified as:

i. The ESU authorizes to advance the company's overall environmental management

system and social management implementation to maintain their effectiveness,

consistence and continuous update. Another task of the company is to monitor

operation activities, gather, analyze, report and disclose data related to environment,

provide feedback advice to related department and board and coordinate relief

measures taken by various departments. This department shall also ensure

communication among environmental management departments at various levels and

resolve the public complaint on environmental issues. It is worth mentioning that during

the report period, the three projects, Acheng Phase II, Mudanjiang Phase II and Harbin

Sludge undergone the audit of ADB and submitted relevant documents, including

social audit reports and environmental management plans, as required. The Group has

formulated its project environment and social management process to facilitate the

smooth progress of environmental and social management work.

ii. The Security Department is responsible for examining and approving the structure of

the safe production management system of each unit under the Group; establishing

and perfecting the standardized management system for safe production; organizing

the preparation of safe production and safe construction targets, and implementing

safety evaluation; responsible for evaluating the safety of protective equipment and

facilities, setting, monitoring and managing key points of safety management,

organizing safety inspection and hidden danger rectification and implementation;

organizing each unit’s preparation of emergency rescue plans for work safety accidents;

organizing the drills of such emergency rescue plans for work safety accidents and the

construction of emergency rescue teams; organizing each unit’s safety publicity,

education and training work and helping relevant departments to publicize safety

science and technology and advance the construction of enterprise safety culture;


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supervising and inspecting the safety management of construction projects; organizing

the investigation and treatment of work safety accidents; responsible for safety

management of fire fighting, fire prevention, security, safety facilities and special

equipment; responsible for vehicle management of each unit (please provide detailed

decomposition); responsible for occupational health and industrial hygiene

management, coordinating protective equipment, facilities and supplies management

and monitoring on-site safety management of production units; responsible for the

archiving management of all inner safety data and inspecting and guiding each unit’s

inner safety management.

iii. The Financing Center is responsible for working out financing resource planning,

preparing and organizing the implementation financing resource optimization schemes;

formulating annual financing plans, working out and implementing special financing

implementation plans; participating in capital operation and asset reorganization

management.

iv. The production planning department integrates environmental and social requirements

into LJEP’s operational specifications, codes, and production planning. It is also

demanded to take environmental and social requirements into account when designing

investment and operational modalities, which is a key task of the department. This

department has a command center under it ,taking care of daily operational activities of

all the components of LJEP including the environmental and social performance. The

command center supervises implementation of QEMS and ESMS in

subprojects/activities, and carries out actions to correct any arising incompliance. It

also plays as a statistician to provide timely and accurate statistics reflecting the

environmental and social achievements.

v. The human resource department sets up appropriate staffing standard to ensure

adequate and qualified management and/or technical personnel will be allocated to the

positions with environmental and social responsibility. It also undertakes due diligence

on the staff performance. Meanwhile, this department makes and implements

environmental, safety, and occupational training plans; arranges physicals for the

whole staff; and promotes health care and other welfare for the employees. This

department, the Party-Masses Work Department and the Planning Department works

in a united office, mainly responsible for affairs management, trade union management

and enterprise culture construction and publicity work.

vi. The investment department is entitled to manage preparation, finalization and

acceptance to operation of the construction projects. Hence it takes charge of ESAs


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emerged in the two kinds of phases of the project cycle. This department also

communicates with ADB and other shareholders about ESAs on behalf of LJEP’s

management board. Theoretically, the investment department may be confronted with

resettlement complaint and indigenous people grievance, therefore a resettlement plan

(RP) and a indigenous people plan would be readily prepared and implemented.

However, as explained in paragraph 26 and 27 below, there were never such

challenges appearing in the reporting period.

vii. The project management center is commissioned to engage all the ESAs during the

project construction phase. Potential ESAs include conventional air pollution,

wastewater, noise & vibration, impairment on ecosystem, and any other social impacts

that are liable to causing serious complaint and impedance to the project. Nevertheless,

the project staff actually had little troubles in the reporting period.

viii. The technical management and R&D department mainly keeps close track of

advanced and innovative technologies applicable to LJEP’s subprojects/activities. It

also takes independent or joint studies to provide solutions for immediate and

impending technical challenges. Whenever or whatever it is possible, new techniques

will be introduced into LJEP in time. As a good example, the technical center

collaborated with Harbin Industrial University to search an optimized sludge treatment

technology for reduction and recycling of the huge sludge dump. They made it. This

department has a water quality monitoring center under it, whose mainly

responsibilities include: participating in quality objective formulation, organizing the

preparation of water quality management plans for water supply and wastewater

treatment; establishing and perfecting water quality management systems, formulating

water quality inspection, monitoring and management rules, regulations and technical

specifications and preparing internal control standards; organizing water quality testing,

monitoring, inspection and appraisal work involved in water supply projects and

wastewater treatment projects and responsible for water quality sampling work;

organizing preventive treatment of unqualified water quality issues such as outlet water

quality abnormalities; guiding water quality inspection and monitoring business,

organizing technical training of laboratory personnel and monitoring personnel;

organizing annual business assessment of inspection personnel, monitoring personnel

and laboratory personnel; cooperating with relevant government departments in the

investigation of pollution accidents and submitting unified water quality monitoring data

to be released to the outside; water quality equipment and facility management.

ix. The financial department commits fully to providing financial support for ESAs as cost


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of environmental training, expenditure in monitoring, payment for new techniques of

sludge treatment, etc.

x. President Office: Under the guidance of President and Vice President, the President’s

Office is mainly responsible for administrative management, general affairs

management, non-investment legal affairs coordination and management, letter and

call management of the Group Company and the organization and implementation of

large-scale theme activities. There is an archives office under it, working in a united

office with the Enterprise Management Office, mainly responsible for participating in

organization setting and adjustment and defining responsibilities and duties of each

department; coordinating the construction of rules and regulation systems; organizing

and optimizing the business process of the Group Company; coordinating the

operation performance appraisal of each department and the units directly under the

Group Company; Working out development plans, establishing management systems

and promoting enterprise cultural construction.

15. For the sewage disposal plants and faucet water plants under operation, major environmental and social tasks within the report period include:

i. Carrying out QEMS and ESMS in their operational and maintenance activities to

ensure satisfactory environmental and social performance.

ii. Keeping wastewater treatment/water supply facilities in good conditions and

working well; tail water/running water meeting regulatory criteria respectively;

sludge being properly disposed; and other significant adverse impacts (e.g. odor,

garbage, sludge, and sewage per se) within allowable limits.

iii. Ensuring the on-line monitoring system doing well and reading out real time data

ceaselessly, as mandatory requirements of the environmental authority.

iv. Formulating environmental monitoring plans and preparing monitoring reports.

v. Preparing corrective action plans in view of the adverse impact of projects on the

environment and society.

vi. Keeping vigilant and good scores of risk management by ensuring all the positions

and processes subject to potential risks (e.g. equipment failure, power outage,

overflow, pipeline damage, fire incident, and flood/water logging) closely watch

dogged and in control.

vii. Strengthening safety management and staff health care to avoid or minimize

incidental casualties and health hazard.

viii. Enhancing working skills and environmental awareness of the employees by


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periodic training and routine education.

ix. Maintaining a good relationship with neighboring communities, governmental

administrators, and other stakeholders by proactive communication, information

disclosure, and transparency.

16. Major environmental and social tasks concerning the ongoing sub-project:

i. Strengthen environmental and social management and capacity building to cope

with thorny potential or newly emerged issues.

ii. Formulating and implementing mitigation measures against the possible adverse

impact on the environment during the project construction period and preparing

compliance monitoring reports.

iii. Superintending construction activities and ensuring that the contractors strictly

adhere to requirements of the project EIA and the detailed design, and all the

prescribed environmental protection measures (mainly for soil erosion, noise &

vibration, dust pollution, small volume of camp sewage and garbage, etc.) are put

in place according to the time-bound schedule.

iv. Undertaking due diligence on safety and occupational health of construction labor

force and promoting welfare for workers as much as possible; maximizing social

benefits.

v. Maintaining a good relationship with neighboring communities, governmental

administrators, and other stakeholders by proactive communication, information

disclosure, and transparency.

vi. Involuntary immigration and original inhabitant issue: when LJEP obtained

sub-projects, the local government and EA have completed land acquisition and

honored all compensations. According to the agreement signed between LJEP and

local government, when the permanent or temporary land use has been handed

over to LJEP, the power, water supply and road are already available. The legal

responsibilities arising out of immigration, compensation and claim belong to the

local government. On the other side, among the 2010 projects, Mudanjiang

Sewage Disposal Plant Phase II needs land acquisition; the current project is not

started yet. For this project, all land acquisition and other social issues belong to

the governmental scope, the government is responsible for land acquisition and

resettlement and shoulders related expenses. The same shall not be borne to

LJEP.


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III Environmental and social requirements compliance

A National requirements compliance

17. From the very beginning when LJEP was founded, environmental and social commitment has been always the core value of the corporation. Following and being compliance with environmental and social laws, ordinances, regulations, codes, and standards of national and local levels should be the first things first of LJEP's environmental and social management. In fiscal year of 2012, the environmental and social performances of LJEP and its all subjects/activities scored high points.

A.1 Quality and Environmental Management System

18. Prior to the establishment of environment and social management system required by ADB, LJEP already established complete quality and environment management system in 2009, in compliance with ISO9001 and ISO14001. Both systems were certified on July 17, 2009 by HBQA and passed re-rating in 2012 (see attachment 2), including all sewage service and related activities. ISO9001-14001 system plays a very important role in LJEP’s sub-project. Related issues arising out of environmental and social aspect are seen in column 2.

Column 2. Certified Quality and Environmental Management System

� Continuing commitment environment friendly, social responsive and

sustainable development.

� Policy framework defining LJEP’s strategy, principles, and objectives in

environmental and social fields and ensuring the national and local statutory

safeguard requirements are fully met.

� Environmental, safety and occupational health responsibilities and

obligations assigned to every operation and activity.

� Operational instructions to guide and regulate response to environmental,

safety and occupational health stresses for minimizing and mitigating risks

and adverse impacts of subprojects/activities.

� Performance inspection and evaluation procedures to ensure due diligence

on and ever lasting improvement of environmental, safety and occupational

health performances.

� Prompt, proper and effective correcting action plans for any emerging or

potential faults and defects in environmental, safety and occupational health

fields, including a scrutinized contingency scheme.

� Records and reporting system to track the interactions with environmental,

safety and occupational health matters from top to bottom.

� Institution for various types of training to promote environmental capacity

building and provide qualified staff with sufficient knowledge and skills in

environmental and safety domains.


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19. LJEP's QEMS environmental factor identification needs yearly update3. In 2011, the environment verification involved 161 items in environment and resources, covering three major sub-protects, including LJEP Taiping Sewage Disposal Plant, Mudanjiang Sewage Disposal Plant and Jiamusi East Area Sewage Disposal Plant; thereinto, 9 highlighted environmental factors are classified into 3 categories (e.g. water and soil pollution, air pollution and energy conservation) which gets adequate attention. For each environment and resource constraint, the QEMS confirms anticipated impact, possible operation status and time framework, responsible department (or personnel) and prevention complaint and relieving measures. Through this set of standard method, LJEP guarantees quality of three sub-protects and continued improvement of environmental management system so that different regulations and rules are met. At the same time, 2012 quality and environmental management system supervision and examination work is to be conducted in late May 2013 and completed by July 2013.

A.2 Compliance with Legislative and Regulatory Requirements

20. Harbin Pingfang Sewage Disposal Plant, Harbin Xinyi Sewage Disposal Plant and Jiamusi West Area Sewage Disposal Plant constructed before 2011 were put in operation in 2011, whose construction and installation were done in the factory site of the front phase project. During the report period, LJEP's expansion project includes Zhaodong Sewage Disposal Phase II and Heihe Sewage Disposal Phase II. Harbin Sludge Disposal Project is still ongoing, obtaining approval from all related authority, including EIA approval, thereinto, Zhaodong Phase II has been put in operation in the end of 2011; Heihe Phase II is still under construction. Land acquisition concerning Ning'an Anda, Pingfang, Zhaodong Phase II has been resolved, with land certificate obtained, see attachment 3 in details. The front phase design concerning Phase II engineering of Mudanjiang Sewage Disposal Plant is ongoing, with governmental administrative approval before land acquisition being handled. Previously, Longjiang Environmental Protection has no resettlement issue and/or case of impacting former local inhabitants.

21. Table 2 sets out major environmental and social law (or regulations) and their observance by LJEP

3 In August 2, 2012, pass HBQA and first re-rating review of quality and environment management system certification.


16

Table 2. Main Legislative/Regulatory Requirements and Compliance Statuses

Legislative Requirements

Title Correlated Stipulations Compliance Status Note

Environmental Protection Law

The Environmental component should be

designed, built, and operated simultaneously

as the principal component.

Fully met Some mitigation measures even prior to

main constructions.

EIA Law

EIA report should be delivered and a permit

obtained before the feasibility study or

project application gets approval.

Fully met. All the subprojects had been

approved.

Most EIAs for LJEP’s subprojects were

managed by governmental EAs before

transferring to LJEP.

Environmental Protection

Management Ordinance for

Construction Project

EIA requirements for projects. Provisions on

environmental management of the whole

project circle including design, construction,

acceptance to operation, operation and

close down.

Entirely satisfactory. LJEP managed its

subprojects/activities strictly following

stipulated procedures and

requirements.

LJEP mainly engaged itself in

successive construction, acceptance

inspection, and operational mgt.

Water Pollution Control Law; Air

Pollution Control Law; Noise

Pollution Control Law; Solid

Wastes Pollution Control Law

Provisions on control requirements of water,

air, noise, and solid wastes pollutions.

Focuses are put on locating pollution

sources and relevant management,

pollutants treatment and disposal, protection

of water resource and other environmental

sensitive objectives.

Satisfactory. LJEP per se commits fully

to water pollution control and

preservation of water resources, with

considerate inputs on pollution control

of sludge, odor, and noise.

Large quantity of sludge cumulated in

past years was still causing serious

impacts on surroundings. It is the most

intrusive environmental stress and

LJEP’s first priority of environmental

concerns.

Management Regulation on

Environmental Acceptance

Inspection for Completion of

Construction Project

Procedural, functional, and performance

requirements for the specific environmental

acceptance inspection. Violation of this

SEPA Decree by any project could result in

banning to operation.

Fully met. All LJEP’s subsidiaries in

service have fulfilled the specific

environmental acceptance inspection

and got the final permit for operation.

Some subprojects were going to take

the inspection by the end of 2010.

According to latest news, the newly-built

Harbin Pingfang WWTP, Harbin Xinyi,

and Jiamusi Western have commenced

the environmental acceptance

inspection when this report is prepared.

Law of Promoting Clean

Production; Energy Saving Law;

Directive Inventory for

Promotion of adoption of advanced

technologies and equipment, clean materials

and energy; encouragement of recycling

Entirely satisfactory. LJEP has been

pushing clean production and energy

saving cross its all

To address the long term sludge pollution

and transform the feces into a useful

resource, LJEP has started a ambitious


17

Adjustment of Industrial

Structure (2005)

industries and comprehensive utilization of

resources; improvement of

production/service processes and

enhancement of production efficiency;

strengthening management of energy

consumption and product’s life-time cycle;

reduction of pollution; investment &

technological categories to be encouraged,

limited and banned.

subprojects/activities. Technologies

adopted by LJEP are listed as

encouraged category in the inventory,

also uptodate or appropriate and

commonly used. The corporation was

entitled with energy saving example of

Harbin Municipal by the government in

the past consecutive two years.

project aimed to devour the huge sludge

dump accumulated within Harbin

Wenchang WWTP compound at a rate of

1,000 t/d by a new composting technology

which mixes the sludge with straw and

then ferments the mixture in high

temperature tank and finally get a

manure. This compost could be used as

an ameliorant for saline soil or for

afforestation.

Land Management Law; Urban

and Rural Planning Law;

Management Ordinance for

House Demolition in Urban

Area4.

Procedures of land acquisition, house

demolition and resettlement, and application

for permits of project locality, building

density, plot ratio, and construction activities.

Fully met. All land acquisition and

resettlement had been finished with

relevant compensation in place. All the

project designs and constructions

strictly abided by relevant permits.

LJEP has never been involved in land

acquisition and resettlement activities up

till now. All its occupied lands either

permanently or temporarily are

appropriated or sold by local

governments.

Labor Law; Labor Contract Law;

Women Rights and Interests

Protection Law

Provisions on employment; establishment,

alteration, and abolishment of labor contract;

labor dispute arbitration; laborer’s rights and

obligations, work hour and break

time/vacation, salary, safety and

occupational health; occupational training;

social insurance and welfare; protection of

women and minors; gender equity on

working, payment, welfare, social insurance,

and political interests.

Totally satisfactory. As a social

responsive corporation, LJEP fully

respects legislative requirements of

social dimension and commits itself and

its subsidiaries to better fulfillment of

relevant duties. All the employees have

signed the labor contract and enjoyed

stipulated rights and interests. Safety,

occupational health, training, social

insurance and welfare, and gender

equity are highly secured. No minor was

employed. All the staffs have

endowment, medical, work injury,

maternity and unemployment

LJEP has a staff of 1,480 employees

among which 455 employees are female

(30.74% of the whole staff). LJEP

ensures every employee receives fair

and equitable treatment. Most of female

employees take on administrative,

technical, financial, and fare collection

positions working on day shifts only and

with middle or upper level of payment.

Female employees can get more health

care. All the employees have a physical

inspection before engaged in position.

Middle and high level management staff

can enjoy physical on yearly basis.

4 This ordinance will be replaced by Ordinance for House Acquisition and Compensation on State-Owned Land, promulgated by Decree of the State Council No. 590, taking effect from Jan. 21, 2011.


18

insurance, as well as other welfare.

Constitution of PRC; Law on

Regional National Autonomy;

Ordinance on Religious Affairs;

Relevant Policies of People’s

Government

Provisions on nationality equity, favorable

policies for development of minorities,

freedom of religious belief, etc. In addition,

governmental policies generally give certain

privileges to minority and religious people.

Fully met. LJEP observes statutory

requirements of indigenous people

protection. LJEP and its subsidiaries

provide indiscriminate service to the

people in service area no matter what

nationality they belong to or what

religion they believe.

Within the corporation, LJEP also follows

an indiscriminate policy in terms of

employment, payment, promotion,

training, health care, and other welfare.

Mr. Piao Yongjian, a Korean, as the CEO

of LJEP, provides a live example. Many

employees are Manchu, Korean, Hui,

and Mongolian.

Requirements of Technical Policies/Guidelines/Codes

Title Correlated Stipulations Compliance Status Note

Technical Policy for Urban

Wastewater Treatment and

Pollution Control; Technical

Guidelines for Urban

Wastewater Treatment and

Pollution Control

Detailed conditions for localities of WWTPs,

recommendations and guidelines for

wastewater and sludge treatment

technologies; prevention and mitigation

measures for secondary pollutions on

ambient air, water, soil, acoustic

environment, and groundwater.

Generally satisfactory. LJEP and its

subsidiaries all belong in national

encouraged categories. The localities of

LJEP’s WWTPs are sufficiently

separated form water sources, natural

reserves, residential blocks, and other

sensitive areas.

LJEP has so far been rarely engaged in

the location selection and other earlier

project preparation of WWTPs. While it

could happen in the future, this issue has

always been dealt with by local

governments or governmental EAs till

now.

Technical Policy (Tentative) for

Sludge Treatment and Pollution

Control in Urban and Township

Wastewater Treatment Plant

Technical guidance for sludge treatment and

disposal by adoption of uptodate

technologies; recommendations for pollution

control and proper disposal.

Generally satisfactory. Sludge is

normally dehydrated to certain extent

and sent to landfill or just dumped within

the WWTP compound (e.g. Harbin

Wenchang WWTP).

Sludge dumping to landfill is facing more

and more restrictive conditions. A sludge

composting plant adopting advanced

technology was prioritized and

undergoing construction within Harbin

Wenchang WWTP compound.

Environment Social Performance Report (2012) LJEP Group Co. Ltd

19

A.3 Regular environment monitor inspection

22. According to the above contents, LJEP has established a set of online monitor system, including all its sewage disposal plant and water plant. The monitor system works 24 hours a day so that LJEP's QEMS can respond to over target value to prevent direct or indirect damage on environment. This set of complete monitor system meanwhile provides complete monitor data to provide a sound platform environment performance inspection for LJEP within the report period. Besides, each sewage disposal plant is equipped with professional assay equipment. The following table lists major environment indicator of all sewage disposal plants and water plants. The monitor data shows that all sewage disposal plants and water plants of LJEP meets related standard requirements. Within the report period, there is no over target status.

Table 3. Average Daily Air Pollution Monitor Data in 2012

Indicator

Smelly gas1

concentration (no

dimension)

H2S1

mg/m3

Ammonia gas1

mg/m3

Methane2

%

Standard value 20 0.06 1.5 1

Name of sewage

disposal plant

Harbin Wenchang 7~15 0.009~0.026 0.068~0.186 0.09~0.72

Harbin Taiping 8~12 0.011~0.025 0.054~0.221 0.12~0.53

Harbin Pingfang 9~14 0.006~0.010 0.081~0.303 0.11~0.70

Harbin Xinyi 12~15 0.004~0.006 0.062~0.125 0.23~0.29

Harbin Acheng 10~13 0.002~0.004 0.061~0.127 0.20~0.26

Mudanjiang 6~13 0.011~0.025 0.103~0.342 0.07~0.36

Jiamusi East Area 8~12 0.012~0.016 0.007~0.121 0.21~0.53

Jiamusi West Area 11~17 0.010~0.021 0.013~0.023 0.42~0.83

Heihe 8~12 0.006~0.009 0.066~0.208 0.20~0.61

Jixi 8~14 0.003~0.008 0.087~0.316 0.12~0.78

Zhaodong 10~17 0.004~0.006 0.064~0.129 0.22~0.26

Ning’an 11~17 0.015~0.029 0.011~0.023 0.43~0.86

Anda 10~15 0.005~0.012 0.102~0.139 0.12~0.33

Fujin 10~14 0.004~0.008 0.142~0.198 0.19~0.36

Note: 1 Urban sewage disposal plant discharge standard (GB18918-2002), category II 2 Smelly gas emission standard (GB14554-93), category II


20

Table 4. Noise Monitor Data in 2012

Indicator Continuous equivalent sound level

in daytime (dBA)

Continuous equivalent sound level

at night (dBA)

Standard value 60 50

Name of sewage disposal

plant

Harbin Wengchang 44.1~55.8 36.1~45.3

Harbin Taiping 43.3~56.8 35.3~46.0

Harbin Pingfang 43.0~52.6 41.8~47.6

Harbin Xinyi 36.2~43.9 33.3~39.8

Harbin Acheng 43.6~52.5 41.1~47.5

Mudanjiang 37.6~53.9 33.7~42.4

Jiamusi East 41.4~48.4 32.6~39.2

Jiamusi West 42.3~47.7 31.4~40.8

Heihe 41.1~52.2 34.2~42.9

Jixi 44.3~55.6 34.3~44.7

Zhaodong 43.4~52.6 41.3~46.8

Ning’an 35.5~44.4 34.0~39.9

Anda 41.5~50.8 35.8~42.5

Fujin 45.2~50.9 41.3~45.6

Note: Industrial Company discharge standard, category II (GB12348-2008)

Table 5. Sludge Monitoring Data in 2012

Indicator Sludge quantity in 2012 (ton) Sludge water content (%)

Name of sewage disposal

plant

Harbin Wengchang 79361 77.94

Harbin Taiping 88512 77.84

Harbin Pingfang 8940 77.92

Harbin Xinyi 24537 77.51

Harbin Acheng 11622 79.00

Mudanjiang 37752 79.19

Jiamusi East 11128 78.80

Jiamusi West 5277.5 77.70

Heihe 4744 79.16

Jixi 13828 77.73

Zhaodong 17141 78.44

Ning’an 4714 78.55


21

Anda 9353 79.18

Fujin 4381 79.30

Total 321290.5

Note: Anda Sludge Disposal Plant was under official operation in November, 2010, with operation of sludge dehydration equipment delayed to April, 2011.

Table 6. Water Supply Plant's Water Quality Monitor in 2012

(Annual average total analysis on a monthly basis)

Test Items

National

Institute of

Standards

Unit Annual average treated water

Mudanjiang Jiamusi Jixi

smell and taste nought / nought nought nought

Visible objects nought / nought nought nought

pH 6.5 -8.5 / 7.1 6.87 6.8

turbidity 3.00 NTU 1.3 2.74 2.54

color 15 Degree 7.9 2.5 13.0

free chlorine ≥0.3 mg/L 0.4 0.45 0.4

Nitrates 10 mg/L 1.3 0.11 4.10

Total Hardness 450 mg/L 46.2 55.8 129.3

The amount of

oxygen

consumed

3 mg/L 3.0 0.9 2.76

Chlorides 250 mg/L 10.1 5.66 21.2

Iron 0.3 mg/L 0.1 0.19 0.3

Total number of

colonies

100 CFU/mL) 2.7 Not detected 10.0

Total coliforms Not detected CFU/100mL Not detected Not detected Not detected


22

Table 7. Average Value of Monitor Data for Sewage Disposal Plant in 2012

Name

Design disposal

capacity

103m

3/d

Total disposal

volume

103m

3

COD

(mg/L)

BOD5

(mg/L)

SS

(mg/L)

NH3-N

(mg/L)

TN

(mg/L)

TP

(mg/L)

Inlet Outlet Inlet Outlet Inlet Outlet Inlet Outlet Inlet Outlet Inlet Outlet

Standard value (category II)1 350 100 220 30 220 30 30 15 / / 6 3

Harbin Wenchang

325 93488.0 304 49.4 142 8.35 236 16.5 41.34 4.26 46.26 16.29 5.29 0.62

Standard value (agreement)2 420 100 220 20 250 20 50 15 / / / /

Harbin Taiping 325 103277.7 269 49.8 140 8.22 215 16.5 37.51 4.09 42.61 16.10 4.67 0.64

Standard value (agreement)2 350 60 200 20 250 20 35 8 15 45 20 5 1

Harbin Pingfang 150 11463.3 288 41.1 132 10.5 293 15.0 38.31 4.53 45.94 17.56 4.35 0.69


Harbin Xinyi 100 22170.7 618 40.1 266 7.52 377 11.2 54.74 2.69 62.12 14.79 7.35 0.58


Harbin Acheng 500 18790.4 405 34.4 135 4.70 244 7.30 19.47 1.05 32.30 13.62 4.91 0.91

Standard value (agreement)2 400 100 180 20 200 20 / / / 20 4 1

Mudanjiang 100 36611.9 204 42.4 73.2 11.2 176 15.9 19.36 1.01 25.81 17.53 3.83 0.85

Standard value (level II) 350 100 160 30 200 30 35 25 / / / /

Jiamusi East 60 23133.9 217 23.3 91.1 5.87 130 11.5 20.52 0.94 23.85 7.99 2.37 0.36

Standard value (agreement)2 350 50 160 10 200 10 35 5 8 40 15 5 0.5

Jiamusi West 50 19255 268 36.7 159 78.4 191 5.00 28.70 2.90 34.50 6.54 3.10 0.23

Standard value (level I B) 450 60 250 20 300 20 65 8 15 70 20 7.5 1

Heihe 50 7858.0 329 24.9 137 9.36 199 10.5 39.67 2.39 43.41 12.67 4.83 0.38


23

Standard value (level I B) 400 60 200 20 200 20 45 8 15 55 20 6 1

Jixi 50 18332.2 341 36.3 114 12.2 190 15.0 32.53 4.42 42.16 12.16 3.60 0.49

Standard value (level I B) 400 60 180 20 240 20 30 8 15 40 20 6 1.5

Zhaodong3 50 17421.4 461 45.2 155 13.7 193 14.7 42.20 1.70 50.25 13.49 5.35 0.35

Standard value (level I B) 450 60 200 20 250 20 25 8 15 / 20 5 1

Ning’an4 20 6774.0 303 35.3 111 12.4 219 12.0 22.86 5.66 33.66 18.99 3.32 0.84

Standard value (level I B) 350 60 180 20 250 20 35 8 15 50 20 5 1

Anda4 20 8886.0 204 45.4 97.6 11.2 176 16.0 26.43 3.01 37.34 13.24 4.67 0.75

Standard value (level I A) 300 50 200 10 250 10 30 5 8 30 15 4.5 0.5

Fujin4 20 4883.4 297 26.0 114 6.00 264 7.00 33.25 2.54 40.71 12.30 4.49 0.32

Note: 1) For Wenchang Sewage Disposal Plant and Taiping Sewage Disposal Plant, the ammonia and nitrogen in discharged water reduces to 15mg/L, as per the agreement between LJEP and local government. 2) The agreement with Taiping Sewage Disposal Plant takes into consideration of suction water quality and disposal capacity. 3) According to suction water quality and disposal capacity, the total phosphorous standard is 1.0--1.5mg/l. 4) Ningan, Anda and Fujin were under official operation separately in April, 2010, November, 2010 and December, 2010.


24

Table 8. Construction Period of Heihe Sewage Disposal Plant Phase II-Environmental Monitor

Environmental factor Downstream ground water quality Downstream air

quality

Indicator PH COD (mg/L) BOD5 (mg/L) NH3-N (mg/L) TN (mg/L) TP (mg/L) Oil

category(mg/L) TSP (mg/L)

Standard Value* 6 - 9 20 4.0 1.0 1.0 0.2 0.05 0.3

Monitor value 7.29 12.0 2.5 0.4 0.45 0.08 No inspection 0.17 – 0.30

Table 9. Construction Period of Acheng Sewage Disposal Plant Phase II-Environmental Monitor

Environmental factor Downstream ground water quality Downstream air

quality

Indicator PH COD (mg/L) BOD5 (mg/L) NH3-N (mg/L) TN (mg/L) TP (mg/L) Oil

category(mg/L) TSP (mg/L)

Standard Value* 6 - 9 20 4.0 1.0 1.0 0.2 0.05 0.3

Monitor value 7.26 12.3 2.6 0.5 0.55 0.07 No inspection 0.15 – 0.29

Note: Level III water quality standard in GB3838-2002 and level II standard as per GB3096-1996


25

23. Within the report period, LJEP's construction activity environment monitor is conducted by local government monitor station, with low monitor frequency, thanks to well-round environment management. Table 8 and 9 list Sewage Disposal Plant's data in terms of environmental performance in the construction period. Due to similar characteristics and environmental background, the selected monitor data is typical and representative. The monitor spot is equipped in the downstream of the construction site. The gathered environment quality data indirectly reflects impact of construction activity. Apparently, the water quality is very good, indicating that the water discharge in the construction site has no obvious impact on water quality.

24. According to the 2012 China National Land and Resources Information, 198 prefecture-level administrative areas have conducted underground water quality monitoring work, with a total of 4,929 monitoring points, including 800 state-level monitoring points. According to the Underground Water Quality Standard (GB/T14848-93), the comprehensive evaluation result is as follows: there are 580 monitoring points with excellent-level water quality, occupying 11.8% of all monitoring points, there are 1348 monitoring points with good-level water quality, occupying 27.3%; there are 176 monitoring points with fair-level water quality, occupying 3.6%; there are 1999 monitoring pointes with poor-level water quality, occupying 40.6%; there are 826 monitoring pointes with extremely poor-level water quality, occupying 16.8 %. Compared with the previous year, there are a total of 4,677 water quality monitoring points with continuous monitoring data, distributed in 187 cities, including 2,974 monitoring points whose comprehensive water quality change show a steady trend, occupying 63.6% of the total number of monitoring points, 793 monitoring points whose water quality has changed for the better, occupying 17.0% and 910 monitoring points whose water quality has changed for the worse, occupying 19. 5%. On the whole, in 2012, of the nationwide water quality monitoring points with continuous monitoring data, the overall change of underground water quality mainly showed a steady trend, with similar proportions of the monitoring points whose water quality changed for the better or for the worse..

25. Mudanjiangr Longjiang Environmental Protection Water Supply Co., Ltd. is acquired by LJEP via TOT; Jixi Water supply plant is operated by LJEP entrusted by Jixi government. In 2011 end, in the year end excellency rating for governmental authority and municipal welfare companies by Mudanjiang and Jixi inhabitants, Mudanjiang Water Supply Company and Jixi Water Supply Company run into top-10 from the low-ranking originally, which indicates the water supply service quality gets recognition by users.

26. Generally speaking, LJEP boasts of excellent environmental and social performance in terms of water supply and sewage disposal, there is not major environment issue and social complaint record. LJEP's Sewage Disposal Plant helps to improve the water pollution prevention and control in SRB. According to data published by Heilongjiang Environment Protection Authority, the sewage disposal rate for cities within SRB has exceeded 82%. According to related statistics by China Environment Bullitin5, the water quality in Songhua River has improved a lot, thereinto, I- III water body6 belonging to national monitor section in SRB rise to 45.2% from 33.8% in 2008. Meanwhile, the VI-V water body reduces to 40.5% from 45.2%, V water body has no obvious variation, still accounting for 14.3%. In a certain extent, such scores are attributed to LJEP and its afficiated sewage disposal plant. The following figure shows water quality improvement in 2008-2011 and water quality in Songhua River in

5 China Environmental Protection Ministry, 2008, 2009, 2010 and 2011 China Environment Status Statement 6 As per ground water environmental quality standard (GB3838-2002)


26

2011.

A.4 Emerging Environmental and Social Issues

27. LJEP has rapidly enlarged its market share in terms of water supply, sewage disposal, sludge disposal and use. With rapid expansion, some new environmental and social issues are emerging, which include:

(i) The sewage disposal plant will produce large quantity of sludge every day. After dehydration, the water content will reduce below 80%, which will be transported outside the factory or transited to the municipal waste burying field. During the report period, Harbin sewage disposal project has been under construction, take LJEPs project in Harbin as an example, the daily newly added sludge in Taiping, Wenchang, Pingfang and Xinyi Sewage Disposal Plant is 650 ton. The sludge stacking field has major environmental safety potential. With the accumulation of sludge, there is no more stacking space; on the other hand, there may be possible secondary pollution on ground water and underground water environment, air and soil environment. The effective and rapid project construction imposes grave challenge on LJEP's wish to build a better environment and gain more social benefits.

(ii) Under most circumstances, the construction of sewage gathering pipeline lags behind sewage disposal plant. Due to lack of gathering pipeline, LJEP's Pingfang Sewage Disposal Plant's actual sewage disposal capacity is inhibited due to inadequate water supply. Although the main pipeline construction is shouldered by the government, in order to prevent or strive to reduce such issues, LJEP needs more communications with the government and design institute with regard to water volume in the front construction stage and strive to obtain confirmation by the National Development and Reform Commission.

(iii) It should be noticed that due to the expansion of Harbin City, the perfection of its piping network and the increase in the amount of domestic sewage in recent years, highly frequent overload situations have occurred in Taiping and Wenchang Wastewater Treatment Plants this year. Due to the combined rainwater and wastewater sewer system in the city, the “sewage overflow” phenomenon occurs in the case of heavy rain. In view of this, Long Jiang Environment Protection Group Share Company has submitted a report to the Environmental Protection Bureau to state the situation.

(iv) Besides, LJEP's follow up pipeline construction may involve land acquisition (usually temporary land acquisition) and related immigration issue. As stated in

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Category I - III Category IV-V Category inferior VWater Quality Improvement of SRB: 2008-2011

2008

2010

2011


27

table 2, on January 21, 2011, the State Council issued State-owned Land House Acquisition and Compensation Rule to standardize house relocation and related compensation, which has replaced the original urban house relocation management rule. The new rule emphasizes the governmental management obligations on land acquisition and immigrant and enhances immigration requirements. Actually, from the perspective of the company, LJEP basically doesn't involve housing relocation and compensation issue. However, the well-furnished and proper mechanism needs to be set to cope with immigration issue in pipeline construction with regard to LJEP sub-project.

(v) In consideration of different modes of LJEP's sub-project acquisition, construction or operation, it's necessary to confirm LJEP and its sub-project's responsibilities, obligations, task and target in terms of social issues after handover. Besides, LJEP needs to form a set of active and efficient communication method so that it can interface with the government in terms of social aspect and honor commitments regarding social gains.

B Compliance with ADB Safeguards Requirements

28. To satisfy ADB’s Safeguard Policy Statement (SPS) of 2009, LJEP put into effect a tailored ESMS for its relevant subprojects/activities through the help of ADB’s experts. One of the main purposes of the ESMS is to fill the gaps possibly existing between the country requirements and ADB’s policies. In general, these gaps mostly lie in social policies and associated institutional requirements. For example, in the established ESMS detailed frameworks for involuntary resettlement and indigenous people are proposed to address land acquisition and associated house demolition and relocation, compensation for land loss, protection of affected ethnic minority groups, grievance redressing, and so on. While in the country system, relevant responsibilities are required by respective laws and other mandatory rules and not integrated. The most prominent gap could be the difference in requirements for transparent information disclosure and stakeholder engagement. In this regard, ADB is more demanding.

29. In the reporting period, LJEP did not handle any involuntary resettlement issues and was never confronted with indigenous people grievance. As pointed out in ADB’s environmental and social safeguards compliance audit report, LJEP primarily relies on the local government to undertake land acquisition and resettlement as this is done even before a particular concession is brought up for bidding. LJEP plays a very limited role in land acquisition and resettlement. The local governments also promised LJEP would enjoy the same entitlement and arrangement as prior practices in land acquisition and resettlement for its future subprojects. With respect to the indigenous people protection, since all LJEP’s subprojects are located in remote suburbs where local inhabitants are sparsely distributed and ethnic minority people, if any, mix with Han, the majority nationality, LJEP’s activities can hardly affect the ethnic people.

30. During the report period, Acheng Phase II, Mudanjiang Phase II and the Sludge Project have undergone social audit, with the results indicating that the land acquisition, compensation and fund allocation of the three projects have been conducted in accordance with the Land Administration Law of the People’s Republic of China and relevant rules of Heilongjiang Province and that all affected families were very satisfied. Providing various compensation and benefits for all affected families and people comply with the clause about non-voluntary immigration in ADB’s Safeguard Policy Statement. The implementation of all mitigation measures is consistent with the requirements for non-voluntary immigration in ADB’s Safeguard Policy Statement, with no violation of any clauses. During the project preparation and implementation stage, a number of activities with public involvement have been held


28

to understand the issues that the affected people were concerned about, such as quantity goods investigation, compensation standards and distribution of compensation fees. The complaining channels intended for migrants are clear and effective and all migrants are aware of such channels. All the three subprojects have no effect on ethnic minorities and have no connection with the provisions about aboriginal people stipulated in the Safeguard Policy Statement.

31. According to the agreements between local governments and LJEP, for all subprojects under LJEP, either acquired through particular concession, or constructed from the beginning, land acquisition and resettlement should be undertaken by governmental agency or government commissioned corporation and all the lands permanently or temporarily needed should be appropriated or sold to LJEP by local governments. For the subproject already acquired, the governmental agency should continue to take charge of successive formalities related to resettlement. As the instance of Harbin Xinyi WWTP financed by ADB’s public loan, Harbin Urban Inland Water Construction & Development Co., Ltd. (HUIWCDC) has been handling the resettlement, earlier preparation, and construction management, whenever prior to or after transferring to LJEP. Even with respect to implementation and monitoring of EMP and RP, HUIWCDC is still engaged in everything related and responsible to report to ADB.

32. As for future expansion and development, the LJEP will remain the same approach with the previous land acquisition. On the other hand, pursuant with the newly enacted Regulation on the Expropriation of Buildings on State-owned Land and Compensation, the people’ government at municipal (or county) level and their authorized EA shall be responsible for the land acquisition, immigration and related compensation caused by public services (including environmental protection and resources maintenance). This mandatory command further explains the reasonable arrangements for LJEP not to directly take charge of land acquisition. However, it is expected the LJEP may also directly involve the land acquisition and resettlement when the extended pipeline network (especially part of pipe network that is not under the public road) is carried out in the future. During the report period, the proposed Mudanjiang phase II is in the process of land acquisition. Local Land Resources Bureau has announced the Notice about Examination and Approval of Implementation Plan for the Phase VIII Mudanjiang Urban Construction Farmland Transference and Land Collection in 2009 released by the provincial government as shown in Annex 4 in December 2011. Thus, in the opinion of LJEP, the ESMS that is consistent with ADB's security policy has always been effective.

33. Taking an overview of LJEP’s environmental and social performance, it can be confirmed that there is no phenomenon noncompliant with ADB’s safeguard requirements. If to be more stringent, people may complain LJEP’s information disclosure and stakeholder engagement are not so sufficient. That means there is room for LJEP to improve its transparency and communication with communities in accordance with ADB’s Public Communication Policy.

IV PROGRESS OF ONGOING SUBPROJECTS/ACTIVITIES

34. As shown in Annex 1, during the report period, there is one new project, Heihe Sludge, and only two existing wastewater treatment plant expansion projects, Acheng Wastewater Treatment Phase II and Heihe Wastewater Treatment Phase II. According to the project schedule, at the end of 2012, the environmental assessment and other procedures of all the projects under construction were completed and these projects will be completed in 2013.


29

35. During the report period, the Wenchang upgrading and reconstruction project is in the midst of transformation from the construction to the operation. For Harbin Taiping Sewage Treatment Plant and Wenchang Wastewater Treatment Plant which are restricted by the construction process standards and influent water quality during the construction period, the COD that is the main indicator of water quality only meets the standard of GB 18918-2002 level II, but should meet the standard of GB 18918-2002 level I in order to improve pollution control projects in key watersheds as required by the country. Thus, LJEP is conducting upgrade projects so as to further reduce the emission of pollutants. The project has entered the trial operation phase in 2011 and is in the process of environmental acceptance at present. The upgrade project is now carried out in Harbin Wenchang Sewage Treatment Plant. Therefore, the construction activities do not involve land acquisition and environmental impact is very limited and controlled.

Legend

Taiping Sewage Treatment Plant

Phase ⅠProject of Wenchang Sewage Treatment Plant

Phase II Project of Wenchang Wastewater Treatment Plant

Phase III Project of Wenchang Wastewater Treatment Plant

Upgrade and Reconstruction Project of Wenchang Wastewater Treatment Plant

Sludge Disposal Project of Wenchang Wastewater Treatment Plant

Serial

No. Name Remarks

Serial

No. Name Remarks

1 New A2/O tank Upgrade 38 Phase garage Phase II

2 New blower room Upgrade 39 Phase lifting pump Phase

General Layout Plan of Upgrade and Reconstruction & Sludge Disposal Project in

Harbin Wenchang Wastewater Treatment Plant


30

station

3 Biofilters for

denitrification Upgrade 40

Phase chemical feed

room Phase

4 Methanol storage pool Upgrade 41

三

Phase lifting pump

station and distribution

room ,chemical feed room

Phase

5 Methanol dosing room Upgrade 42 High efficient

sedimentation tank Phase

6 Depth processing and

lifting pump station Upgrade 43 Biological Aerated Filter Phase

7 Mixed flocculation tank Upgrade 44 Distribution room for

biofilter Phase

8 Filter cloth and filter

chamber Upgrade 45 Sludge storage tank Phase

9 UV disinfection room Upgrade 46 Blower room Phase

10 New administration room Upgrade 47 Fine screen room Taiping

11 Sludge thickening and

dewatering room Upgrade 48 Vortex-type grit chamber Taiping

12 Sludge storage pool Upgrade 49 Primary sedimentation

tank Taiping

13 Phase I sludge thickening

tank Phase I 50 A / O tank Taiping

14 Phase I sludge dewatering

room Phase I 51

Secondary sedimentation

tank Taiping

15 Phase I sewage tank and

sewage pump chamber Phase I 52

Sewage secondary lifting

pump station Taiping

16 Phase sludge tank

and sludge pump chamber Phase I 53 Blower room Taiping

17 Phase I office building Phase I 54 Sludge recycle pumping

station Taiping

18 Phase I clean-water tank Phase I 55 Drainage pumping station Taiping

19 Phase water supply

station Phase I 56

Drainage pumping station

gate shaft Taiping

20 Phase I slagging well

chamber Phase I 57

Spoil disposal pumping

station for primary

sedimentation tank

Taiping

21 Phase I boiler room Phase I 58

Slagging well chamber for

primary sedimentation

tank

Taiping

22 Phase I guard room Phase I 59

Distribution well for

primary sedimentation

tank

Taiping

23 Phase II A / O tank Phase II 60

Distribution well for

secondary sedimentation

tank

Taiping

24

Phase II distribution

well for secondary

sedimentation tank

Phase II 61 Sludge thickening and

dewatering room Taiping

25 Phase II secondary

sedimentation tank Phase II 62 Comprehensive building Taiping

26 Phase II blower room Phase II 63 Garage Taiping

27 Phase Ⅰ disinfecting tank Phase II 64 Mail room Taiping

28 Phase II Sewage

secondary upgrading Phase II 65 Phase I grit room Phase I


31

pumping station

29 Phase Ⅰreturn sludge

pumping station Phase II 66

Phase I primary

sedimentation tank Phase I

30 Phase Ⅰsludge thickening

and dewatering room Phase II 67 Sludge and straw bunker Sludge

31 Phase Ⅰmud hut Phase II 68 Sludge fermentation

workshop Sludge

32 Phase Ⅰdrainage pump

room Phase II 69

Sludge finishing

workshop Sludge

33 Phase Ⅰwastewater

recycle treatment room Phase II 70 Straw storage shed Sludge

34 Phase Ⅰsubstation in the

factory area Phase II 71

Biological deodorization

filter Sludge

35 Phase Ⅰ central control

building Phase II 72 Fire pool and pump room Sludge

36 Phase Ⅰ machine repair

warehouse Phase II 73

Substation and

distribution room Sludge

37 Phase II canteen Phase II 74 Weighing apparatus and

metering plant Sludge

36. The preliminary design of Phase II of Mudanjiang Wastewater Treatment Plant is under way. The environmental impact assessment of the project has been approved and the resettlement plan has been completed. Currently, the preliminary design has been completed and the land acquisition notice has been issued. The project is ready for construction commencement.

37. Harbin Sludge Treatment Plant is the first large-scale sludge treatment plant in the Songhua River Basin, intended to digest and recycle the sludge from the wastewater treatment plants in Harbin. The plant adopts high-temperature fermentation technology to produce fertilizers, located in the existing sludge storage yard in Harbin Wenchang Wastewater Treatment Plant, covering an area of 9.17 hectares7. Expert argumentation shows that if the bioleaching technology is applied to the front end of the process, the treatment capacity can reach 1000 tons, without changing the original area of the plant. According to the project schedule, the environmental impact assessment, feasibility study and preliminary design were prepared and approved in 2010. The diagram below is the schematic diagram of the main process and facilities.

7 The sludge dump is estimated having aggregated up to 500,000 tons of sludge to date.


32


33

38. In the preparation of the report, the sludge disposal plant has carried out the preliminary sludge solidification processing work, namely solidification of sludge piled on the construction site, in order to achieve the lower moisture content as well as prevent secondary pollution caused by rainfall or rise of groundwater. During the investigation on the site, it was discovered that construction machinery such as excavators, loaders and heavy-duty trucks has been on the site. The factory site is far away from the nearest buildings as well as from the Songhua River. Thus, it can be concluded that the impact caused by construction noise, dust, odors and other pollutants on the surrounding sensitive target is negligible. In general, the building activities are organized orderly and compliance with conventional environmental requirements.

V Summary of safety performance and corrective action

39. As set forth under the list of main environmental and social laws (or regulations) in Table 2, the LJEP and its subsidiary plants are in full compliance with provisions of the Labor Law, Labor Contract Law, Law on the Protection of Women’s Rights and Interests and other laws and regulations as well as related security and occupational health requirements. During the report period, all subprojects are fully compliance with above-mentioned provisions, and no significant safety and health event occurs.

40. Long Jiang Environment Protection Group Share Company gives priority to employing local labors and encourages construction project contractors to hire workers from local communities. The Wenchang Sludge Treatment Subproject will offer 33 jobs and Phase II of Mudanjiang Wastewater Treatment Plant will offer 25 jobs.

41. The Trade Union holds the staff conference every year to discuss salaries, welfare, management rules and regulations and other matters related to employees and provide suggestions for the management of Long Jiang Environment Protection Group Share Company.

42. During the report period, Long Jiang Environment Protection Group Share Company recruited 579 employees (including the employees in the newly acquired Jiamusi Running Water Factory), including 171 females, all of which are formal employees. The data above show that in spite of the industry restrictions, Long Jiang Environment Protection Group Share Company still offers employment opportunity and the equal treatment to female employees as far as possible, thereby contributing to the increase in the employment rate of the project location.

Construction Site of Harbin Sludge Treatment Plant


34

43. During the report period, there are 2084 employees in Long Jiang Environment Protection Group Share Company and the plants under it, including professional management personnel, engineers, technicians, manpower analysts, mechanics, operators, electric appliance engineers, drivers, breeders, cleaners, entrance guards and other posts that provide rear service support. Long Jiang Environment Protection Group Share Company encourages contractors to offer equal employment opportunities to female employees and is willing to cooperate with contractors without sex discrimination. Wenchang Wastewater Treatment Plant and Phase II of Mudanjiang Wastewater Treatment Plant will create a total of 58 jobs, 10% of which may be offered to females. All employees have signed a labor contract and enjoy relevant rights and benefits. Long Jiang Environment Protection Group Share Company provide it employees with all legal rights and interests, including salaries, post allowance, old-age insurance, medical insurance, unemployment insurance, housing allowance, maternity insurance, work injury insurance, full attendance bonus and other welfare (such as work clothes, individual protective articles and free lunch). As for the employees exposed to a harmful environment for a long time, subsidies may occupy 15% of their salaries.

44. Anchored to General Principles for Requirements of Safety and Health in Production Process (GB/T12801-2008), Hygiene Design Codes for Industrial Enterprises (TJ36-79), Technical Specification for Operation, Maintenance and Safety of Municipal Wastewater Treatment Plant (CJJ 60-94), and other applicable standards related to safety and health management, LJEP set up a Safety Management Institution (SMI) which covers every position to regulate the procedures, processes, and activities for ensuring compliance with all the legislative and other mandatory safety requirements. SMI explicitly defines the organizational and responsibility aspects of the safety management; and regulates implementation of safety education and training program, safety inspection, accident prevention and aftermath treatment mechanism, contingency plan, rewards and punishment. Through overall screening and identification of key factors potentially impairing safety performance, SMI specially focuses on overflow, accidental release of pollutants, fire, flood, equipment breakdown, pipeline crack, power outage, driving accident, among others. Based on SMI, technical and management measures for securing safety and health dimensions are readily in place. In a word, good institution, conscientiousness, due diligence, and vigorous implementation, all together guaranteed excellent safety performance of LJEP in the reporting period.

45. To strengthen the leadership, supervision and enforcement, LJEP established Safety and Health Management Panels (SHMP) at various administrative levels. As it always being, LJEP came up with an annual environmental, safety and health training program in 2012. By implementing the training program, 579 new recruit received an entering education; four environmental training courses were held accommodating 1910 person-times; four safety training courses for 2027 attendances were finished, and ten occupational education sessions for 3368 person-times were well done. All the input in these trainings got very positive reward and significantly promoted the safety and health capacity building.

46. Long Jiang Environment Protection Group Share Company has its procedure guide and requirement standards, all of which have been clearly archived. Administrative personnel provide occupational training and situation description immediately after a new employee is recruited. Through group discussion and the learning activity, employees can receive further training. On Nov. 30th, 2012, the employees in the Environmental and Social Management Department received relevant ability construction training, with the training topics covering the following several aspects:


35

(i) ADB’s social security policy and procedure;

(ii) Steps for land acquisition and resettlement audit;

(iii) Domestic laws and regulations about social security guarantee;

(iv) Guide for the latest national social impact assessment;

(v) Implementation and monitoring of the environmental and social management system

(vi) International success experience in resettlement

47. As the project owner/proponent, LJEP fulfilled construction safety and health management mainly through specific agreement with the construction contractor. The project management center took charge of daily superintendence of construction safety and health. Construction contractors were required to act following national and local safety/health mandatory rules, and make every effort to avoid work injury and casualties during construction. Moreover, the contractor had to guarantee that the laborers (including farmer-turned-workers) would have timely payment commensurate to their workloads and enjoy necessary social insurance, medical care, personal safety gadgets, appropriate sanitation, and suitable accommodation. LJEP’s project center, together with governmental authorities, supervised and undertook due diligence on the performance of the contractor in terms of construction safety and health.

48. LJEP and its subsidiaries have also maintained a good record of safety and occupational health, but there are still areas that need to be improved. For example, the annual medical examination should not only cover senior management staff and new employees, but should extend to in-service staff, especially those in the harsh conditions. LJEP will expand its health plans and increase the budget so as to benefit all employees. Another proposal is to arrange for a safety and health training. For employees who are exposed to hazardous substances and environmental risk, it is very important that LJEP must ensure that each employee's health, and fully understand the safety and health threats that may be encountered, as well as special programs to deal with such emergencies. Therefore, LJEP should strengthen its training programs to improve the safety and health awareness of employees, so that employees may be aware of the methods and requirements to respond to emergencies or potential threat. All employees, whether new or veteran, are recommended to receive at least once specific safety and health education or training.

49. During the report period, a total of 43 newly hired employees for 10 sewage treatments operation projects of LJEP, including 7 women, belong to certified staff, accounting for 84% of the staff whose hometown are on the project site. The above data indicated that LJEP provides the female employees with employment opportunities and equal treatment as possible even under restrictions by this industry, and makes contributions to the enhancement of the employment rate on the project site.

VI Sustainable Development Activities and Exchange

A Sludge Treatment Plan

50. From the perspective of China's sewage treatment industry, the sludge problem is certainly emerging and will last for long time. The sewage treatment plants across the country perhaps have to face the problem of treatment and disposal of sludge for a long time. A great quantity of discarded sludge contains water, various pathogenic microorganisms and parasites, so as to provide food and breeding conditions for flies


36

and rats. A small-scale decentralized sludge pile will result in the deterioration and pollution of air. The leachate after sludge disposal will lead to the serious pollution of surface water and groundwater. In the Environmental and Social Audit Report, the ADB inspection team also pointed out that the sludge needs to be solved as the most pressing problem. In order to respond to this problem, LJEP has paid great efforts to the research and development of innovative and applicable solutions. LJEP has participated in the project team led by experts from China Northeast Municipal and Environmental Design and Research Institute to prepare the Sludge Treatment and Disposal Plan of Sewage Treatment Plants in Heilongjiang Province (draft) (hereinafter referred to as" sludge Plan ") which has been submitted to Heilongjiang Provincial Development and Reform Commission, Provincial Environmental Protection Bureau and the Provincial Department of Construction.

51. In accordance with the "12th Five-Year" Plan of Urban Sewage Treatment and Recycling Facilities Construction Plan in Heilongjiang Province, the daily sludge production shall rise from 2,848 t / day in 2010 to 3,375 t / day in 2015 with the rapid increase in sewage treatment capacity. The sludge treatment rate will reach 60% in 2015.

52. In view of the rapid increase in sewage treatment, the sludge issue has become an environmental, social and economic barrier to Heilongjiang Province. For the sludge planning, a comprehensive comparison and selection has been carried out among all mainstream sludge treatment processes, and the final choice is composting approach. The nutritive soil produced by the sludge can be widely applied as soil improver to wide extent of saline-alkali soil in Heilongjiang province. In addition, the nutritive soil can be used for woodland fertilizing, garden and flower nursery, lawn cultivation, road slope protection, highway greening, golf courses, soil improvement, quarry, fixation of open pit, and vegetation recovery, etc. As a pilot, the restoration for one hectare of saline-alkali soil needs about 90 tons of nutritive soil produced by sludge compost each year, and the effect will be achieved after 3-5 year continuous restoration. Based on the existing size of sludge composting process (calculated as per nutritive soil production of 428 tons per day), the saline land of 2080 hectares may be restored every three years, which can be used for the cultivation of commodity crops and trees as well as the construction of greening park, so as to generate enormous ecological and economic benefits. In the future, it is predictable that sludge harmless treatment project will be increased by 50 new ones in the “12th Five-Year” Plan of Heilongjiang Province, with a total investment of 2.137 billion Yuan.

53. As the early participant of the sludge program and the forerunner of such sludge composting plants, LJEP has fully committed itself to the implementation of the proposed sludge planning in the next “Five –Year” plan. During the report period, LJEP has signed strategic agreements with Zhaodong, Anda and other local governments, so that LJEP will take advantage of the supplied saline land of five square kilometer as the restoration land for nutritive soil created by sludge compost of Harbin Sludge Treatment Plant. The pilot program is applied to agricultural development after transformation. Through the cultivation of commodity crops such as marigold and lavender, etc., high density straw crop - silage corn and fast-growing trees such as poplars, the agricultural tourism demonstration zone featured by environmental protection shall be established in Heilongjiang Province so as to promote the integration of ecological, economic and social benefits for salinization soil in Heilongjiang Province. Judging from the long-term expansion of the sludge treatment, LJEP will copy the mode of Harbin Sludge Treatment Plant, that is BOT assignment agreement, or develop other financing, construction and operation modes.


37

B Corporation Social Responsibility Report

54. As an earlier participant of the sludge plan and sponsor of the first sludge compost plant of its kind, LJEP will fully commit to fulfillment of the proposed sludge plan in the next five years. In the reporting year of 2010, LJEP signed an outline agreement with Zhaodong People’s Government for an arrangement by which LJEP will reclaim a provided saline plot of 5 square km, using all the sludge compost produced by Harbin Sludge Treatment Plant. The reclaimed plot is planned for development of forestry by planting fast-growing poplar trees. In view of further expansion in sludge treatment, LJEP will copy the modality of Harbin Sludge Treatment Plant, namely BOT concession arrangement, or explore other financing, construction and operation modes.

55. For the purpose of better performance in public relations and transparency, LJEP will re-revise corporate website after its listing application, and make an Annual CSRR available on the website. The Annual CSRR will cover a summary of the performance and results of operation and construction, environmental performance and subproject completion status, public relations, and the contribution to social benefits, in order to reflect environmental and social impact as possible. The LJEP even presents the draft about the further improvement in environmental and social aspects of the Company in its Corporate Social Responsibility Report.

56. Taking into account the similarities between the CSRR and Annual Environmental & Social Report submitted to the ADB, the preparation of the annual corporate social responsibility report may be combined with the report for ADB. The managers of LJEP have agreed that once the preparation and distribution mechanisms of the Annual Corporate Social Responsibility Report are established and implemented, LJEP will improve its environmental and social performance and greatly increase its transparence.Annex 1


38

Annex 1

Summary of Longjiang Environmental Protection Subprojects

Name of

subprojects

Design

capacity

(km3/d)

2011 load

(km3/d)

Total

treatment

capacity

(km3)

COD

pollutant

deduction

(t)

Treatment

process

Mode and

current

status

Date of

conferment

Date of

commencement

Time and

scheduled

completion

date

Remarks

Wastewater Treatment Plant in Operation

Harbin Wenchang 325 196.1 68247.3 18167 A/O BOT

Operation Dec. 2004 May. 2004 Dec. 2005

Existing, Wenchang plant has

experienced with first full year

of operation for 2011 since

2010 after the merger

Harbin Taiping 325 298.8 68247.3 25923 A/O BOT

Operation Sept. 2010 May.2004 Oct.2005 Existing

Harbin Pingfang

Wastewater

Treatment Plant

150 28.0 10330 1975 CASS BOT

Operation Oct. 2008 Dec. 2008 Sept. 2010

Environmental acceptance in

progress

Harbin Xingyi

Wastewater

Treatment Plant

100 59.0 21335 11280 A2/O

BOT

Operation Oct. 2008 Dec. 2008 Sept. 2010

Except the greening project,

the main construction has

already been completed.

Harbin Acheng

Phase I 50 102.95 11840.3 6638.1 CASS

TOT

Operation Sept.2012 / 2012 Existing

Mudanjiang Phase

I 100 101.4 36599.9 8478.5 A/O

BOT

Operation May 2008 NA NA Existing

Jiamusi East 60 63.1 22767.8 2945.2 SBR BOT

Operation July 2005 June 2005 Dec. 2006 Existing

Heihe Phase I 50 41.6 15024.8 5788 CASS BOT

Operation Nov. 2009 July 2008 Sept. 2009 Existing

Jixi 25 26.1 9412.7 2430.9 CASS BOT

Operation Oct. 2009 April 2009 Oct. 2009 Existing


39

Zhaodong Phase I 30 24.6 8895.5 3201.2 CASS BOT

0peration June 2009 March 2009 Sept. 2009 Existing

Zhaodong Phase II 20 / / / CASS BOT

Expansion / Aug. 2010 July 2011

Existing, environmental

acceptance in progress

Ning’an 20 13.7 3776.8 1133 Improvement

of A/O

BOT

Operation Oct. 2009 Aug. 2009 May 2010

Existing, started to run

formally in April 2010.

An’da 45 19.6 1078 161 A2/O

BOT

Operation Dec. 2010 NA NA


formally in November 2010.

Fujin 20 6.4 153.9 28.9 CASS BOT

Operation Dec. 2009 July 2009 Nov. 2010


formally in December 2010.

Harbin Xingyi

Wastewater

Treatment Plant

50 / / / CASS

BOT

Under

construction

Nov. 2008 June 2009 June 2010 Existing, phase is under

construction by municipal

government

Upgrade of Harbin

Wenchang and

Taiping

600 / / /

A/0+

biofilters for

denitrification

+ mechanical

filtration +

UV

disinfection

BOT

Operation Sept.2011 June 2010 June 2011

Existing, at trial operation

currently, environmental

acceptance in progress

Wastewater treatment plants under construction or proposed wastewater treatment plants

Mudanjiang Phase

II 100 / / / NA

BOT

Initialization NA NA NA Proposed

Heihe Phase II 25 / / / CASS

BOT

Under

construction

/ Oct. 2010 Sept. 2011 Expansion

Acheng Phase II 50 / / / BOT

construction / Sept.2012 Aug.2014 Expansion

Wastewater Treatment Plants in operation

Mudanjiang

Longjiang

Environmental

360 / TOT

Operation April 2010 NA NA Existing


40

Water Supply

Company

Jixi Water Plant 100 /

Operation

under

assignment

June 2009 NA NA Existing

Jiamusi Water

Plant 2000 / Franchise NA NA NA Existing

Sludge treatment plant under construction

Harbin Sludge

Treatment Plant 1 / / /

Thermorphilic

aerobic

composting

BOT

Under

construction

Sept.2012 Aug. 2010 Dec. 2011 Under construction


41

Annex 2

Environment Quality Management System Certificate of Conformity and Environment

Management System Certificate of Conformity for Longjiang: ISO9001:2008 and ISO14001:2004


42


43

Annex 3

Name of

subprojects Status of land transaction Land No.

Owner of

land use

right

Location Land type

(application)

Type of

use right

Area of

use right

Issuance

date Remarks

Wastewater Treatment Plant in Operation

Harbin

Wenchang

Has acquired land certificate,

renaming

Heilongjiang

State-owned Land

Use (1997)

Document No.075

Harbin

Drainage

Co., Ltd.

Tuanjie

Township,

Taiping

District

Harbin

Land for

municipal

facilities

Allocation

of

state-owne

d land use

right

585169.0

m2

July

25,2007

Since both Wenchang,

and Taiping jointly

handled the land

certificate initially, the

area of tenure for

Wenchang Wastewater

Plant include

the usable area of

Taiping Wastewater

Plant.

Harbin Taiping Acquired, belonging to the

Group

Harbin

State-owned Land

Use (2009)

Document No.

040011557

Tongfang

(Harbin)

Water Co.,

Ltd.

Tuanjie

Township,

Taiping

District

Harbin

Municipal

public

facilities

Allocation 152141.8

m2

December

18,2009

Harbin

Pingfang

Wastewater

Treatment Plant

Acquired, belonging to joint

project, the partner holds the

certificate of land allocation

/ / / / / / /

Harbin Xingyi

Wastewater

Treatment Plant


project, the partner holds the

certificate of land allocation

/ / / / / / /

Harbin Acheng

WWTP


project

A

State-owned Land

Harbin

Acheng /

Public

facilities Allocation

74924.0

m2 June 9,2012


44

Use (2011)

Document No.

00548

Tengfei

Wastewater

Treatment

Co., Ltd.

Mudanjiang

Phase Acquired

Mudianjiang

Property Right

Certificate

Yangming District

Document No.

4084828

Mudian-

jiang

Longjiang

Environ-

mental

Protection

and Water

Co., Ltd.

450-515-3/

1-27-DZ

Yangming

District

450-515-3/

1-27-DZ

Industrial Allocation 101026.0

m2

January

2,2010

Jiamusi East Acquired

Jiamusi State-owned

Land Use(09)

Document No.

0900800

Jiamusi

Longjiang

Environmen

tal

Protection

and Water

Co., Ltd.

North of

Eastern

part of

Chang’an

Road

Dongfeng

District

Public

infrastruc-

ture

Allocation 70807.00

m2

June 9,2009

Heihe Phase I Acquired

Heihe

State-owned Land

Use (2011)

Preliminary

Document No. 262

Heihe

Longjiang

Environ-

mental

Protection

and Water

Co., Ltd.

Two

kilometers

south from

Changfa

village

Public

facilities Allocation

54000.00

m2

September

30,2011

Jixi Acquired, renaming

Zhaodong

Phase Acquired

Zhaodong

State-owned Land

Use (issued in

2010 ) Document

No. 12

Zhaodong

Longjiang

Environ-

mental

Protection

and Water

Co., Ltd.

West side

of Nanhan

River, the

Ninth

Middle

School of

Tiedong


m2

October

17,2010


45

District

Zhaodong

Phase II Acquired

Zhaodong

State-owned Land

Use (issued in

2010 ) Document

No. 12

Zhaodong

Longjiang

Environ-

mental

Protection

and Water

Co., Ltd.

West side

of Nanhan

River, the

Ninth

Middle

School of

Tiedong

District


m2

October

17,2010

Ning’an Not acquired / / / / / / /

An’da Acquired, but in government

name / / / / / / /

Fujin Acquired

Heilongjiang Fujin

State-owned Land

Use (2011 )

Document No. 0102

Fujin

Longjiang

Environ-

mental

Protection

and Water

Co., Ltd.

North side

of

industrial

park

Land for

environmen

tal

sanitation

facilities

Allocation 18800m2

April

25,2011

Jiamusi West

Wastewater

Treatment Plant

Acquired

Jiamusi State-owned

Land Use(2011)

Document No.

201101738

Jiamusi

Longjiang

Environ-

mental

Protection

and Water

Co., Ltd.

No. 100

Committee,

Yonghong

District

Municipal

facilities Allocation 99866m

2

November

25,2011

Upgrade of

Harbin

Wenchang and

Taiping

Included in the landholding of

Wenchang

Heilongjiang

State-owned Land

Use (1997)

Document No.075

Harbin

Drainage

Co., Ltd.

Tuanjie

Township,

Taiping

District

Harbin

Land for

municipal

facilities

Allocation

of

state-owne

d land use

right

585169.0

m2

July

25,2007

Since both Wenchang,

and Taiping jointly

handled the land

certificate initially, the

area of tenure for

Wenchang Wastewater


46

Plant include

the usable area of

Taiping Wastewater

Plant.

Wastewater treatment plants under construction or proposed wastewater treatment plants

Mudanjiang

Phase II

In the process of land

acquisition / / / / / / /

Heihe Phase II Acquired,

Heilongjiang

State-owned

Land Use

(2011)

Preliminary

Document

No.262

Heilongjian

g

Longjiang

Environ-

mental

Protection

and Water

Control

Co., Ltd.

Two

kilometers

south from

Changfa

village

Public facilities Allocation 54000.00

m2

September

30,2011

Acheng Phase

II


project

A

State-owned

Land Use

(2011)

Document

No. 00548

Harbin

Acheng

Tengfei

Wastewater

Treatment

Co., Ltd.

/ Public facilities Allocation 74924.0m2

June 9,2012

Water supply company in operation

Mudanjiang

Longjiang

Environmental

Water Supply

Company

Acquired,

Ningan

State-owned

Land

Resource(Bra

nch)

Document

No.0072

Mudian-

jiang Water

Supply

Company

Outside

Dongdaem

un

4900.00m2

Jiamusi Water Acquired, HeiJiamusi Jiamusi Xiangyang Public facilities Allocation 1248.23m2

October


47

Supply

Company

State-owned

Land

Resource

Public

Document

No.00773

Water

Supply

Company

district

No.57

15,2002

Jixi Water Plant Operation under assignment,

not belonging to the Group / / / / / / /

Sludge treatment plant under construction

Harbin Sludge

Treatment Plant

Included in the landholding

of Wenchang

Heilongjiang

State-owned

Land Use

(1997)

Document

No.075

Harbin

Drainage

Co., Ltd.

Tuanjie

Township,

Taiping

District

Harbin

Land for municipal

facilities

Allocation

of

state-owne

d land use

right

585169.0

m2

July

25,2007

Area of tenure for

Wenchang Wastewater

Plant includes


48

Annex 4

Mudanjiang Bureau of Land and Resources

Announcement about Compensation and Allocation Scheme for Collecting Collective Land

of Yangming Village and Yumin Village in Xinxing Street Office

According to the Notice about Examination and Approval of Implementation Plan for the Phase

VIII Mudanjiang Urban Construction Farmland Transference and Land Collection in 2009

which was approved by the People’s Government of Heilongjiang in Heilongjiang Government

Land [2011] Document No.169 in October 18, 2011 and re-checking of land collection

compensation registration of villages whose land is collected, Mudanjiang Bureau of Land and

Resources protocolled Compensation and Allocation Scheme for Collecting Land. In accordance

with the Article 48 of Land Management Law of the People’s Republic of China and the Article 25

of Implementing Regulations for Land Management Law of the People’s Republic of China, the

contents and relevant matters of Compensation and Allocation Scheme for Collecting Land are as

follows:

I. Villages with lands to be collected and the areas: in this phase, 11,4165 hectares of collective

land are transferred to urban construction farmland and collected to be owned by the state

(including 4.5310 hectares of collective farmland of Yangming Village and 6.8855 hectares of

collective farmland of Yumin Village; 6.0461 hectares of collective construction land is collected

to be owned by the state (including 5.6027 hectares of residential land and 0.4434 hectares of


49

industrial and mineral warehouse land of Yangming Village); at the same time, 2.3586 hectares of

state-owned farmland in the Jiangxi Farm is transferred to construction land. The above 19.8212

hectare land altogether is the urban construction land in this phase.

II. Standards of compensation and allocation for collecting land: the land areas in this phase are

within the comprehensive land price blocks of collected land blocks in Mudanjiang and numbered

M-22 and M-24, whose comprehensive land prices are RMB 125/m2 and RMB 175/m

2

respectively.

III. Attachments and structures compensation:

For underground and over-ground attachments and structures compensation, compensation and

allocation will be given according to demolition method determined by municipal government.

IV. Farm workers allocation method

Allocation and compensation method will be formulated according to collective economic

organizations whose land is collected and practical situations of the villages in this project.

V. If owners of land ownership and land use right within the four boundaries of the collective land

have different opinions about this scheme, please send opinions in written form to Mudanjiang

Bureau of Land and Resources through Village Committees before January 26, 2012.

VI. After consultation, this scheme will be submitted to the People’s Government of Mudanjiang

for enforcement. According to the regulations in 25th

Article of Implementing Regulations for

Land Management Law of the People’s Republic of China, dispute on the approved Compensation

and Allocation Scheme for Collection Land will not influence enforcement.

Notice is hereby given.

Mudanjiang Bureau of Land and Resources

Mudanjiang Bureau of Land and Resources (sealed)

December 26, 2011


50

Mudanjiang Municipal People’s Government

Announcement about Collecting Collective Land of Yangming Village and Yumin Village in

Xinxing Street Office

The Notice about Notice about Examination and Approval of Implementation Plan for the Phase

VIII Mudanjiang Urban Construction Farmland Transference and Land Collection in 2009

(Heilongjiang Government Land [2011] No. 169), provided by Heilongjiang Provincial People’s

Government, approves the collection of collective land of Yangming Village and Yumin Village in

Xinxing Street Office in our city. In accordance with the Article 46 in “Land Management Law of

the People’s Republic of China” and Article 25 in “Implementing Regulations for Land

Management Law of the People’s Republic of China”, the issues which are relevant to the land

collection are announced as follows:

I. Title of the construction land project: Implementation Scheme of the Phase VIII Urban

Construction Farmland Transference and Land Collection in 2009 in Mudanjiang.

II. Location of the land to be collected: Yangming Village and Yumin Village in Xinxing Street

Office in Mudanjiang. The specific location refers to the block function chart approved by

Heilongjiang Government Land [2011] No. 169 Document.

III. Villages with lands to be collected and the areas: in this phase, 11,4165 hectares of collective

land are transferred to urban construction farmland and collected to be owned by the state

(including 4.5310 hectares of collective farmland of Yangming Village and 6.8855 hectares of

collective farmland of Yumin Village; 6.0461 hectares of collective construction land is collected

to be owned by the state (including 5.6027 hectares of residential land and 0.4434 hectares of

industrial and mineral warehouse land of Yangming Village); at the same time, 2.3586 hectares of

state-owned farmland in the Jiangxi Farm is transferred to construction land. The above 19.8212

hectare land altogether is the urban construction land in this phase.

IV. Standards of compensation and allocation for collecting land: carrying out the task in

accordance with the rules described in “Reply of Heilongjiang Provincial People’s Government on

Adjusting the Comprehensive Land Price of Collected Land Blocks” (Heilongjiang Government

Letter [2010] No. 140) and “Mudanjiang Municipal People’s Government Announcement about

Adjusting the Comprehensive Land Price of Collected Land Blocks in the Whole City”. The land

areas in this phase are within the comprehensive land price blocks of collected land blocks in

Mudanjiang and numbered M-22 and M-24, whose comprehensive land prices are RMB 125/m2

and RMB 175/m2 respectively.

V. From December 16, 2011 to March 16, 2012, owners of land ownership and land use right in

the areas of collected land shall hold the certificate of land ownership or other relevant certificate

materials and go to the village committee office of Yangming Village and Yumin Village in

Xinxing Street Office in Mudanjiang to deal with the land compensation register.

Notice is hereby given.

Documents

Annual Environmental and Social Monitoring Report€¦ · Environmental & Social Performance Report (FY2012) LJEP Group Co. Ltd 3 Protection Bureau and Heilongjiang Construction Bureau