Capacity Building for Project Town Level

19. This component will strengthen the capacity of the city/town PMOs and IAs through provision of support for office operations, office equipment, local transportation, and study tours.

2. Budget

20. The budget for the implementation support and training is presented below.

Table 16: Budget for Implementation Support and Training

Category/Task

International Person-Months

National

Person-Months Total Cost Implementation Support and Training

Consulting and Training Services 13.5 144.0 $850,000

Study Tour $500,000

Capacity Building for SPG $450,000

Historic Town Development Strategy Study $100,000 Office Operation, Transport, Equipment $160,000

Miscellaneous $190,000

Subtotal – Implementation Support and Training $1,800,000 Capacity Building for Project Towns (Office

Operation, Transport, Study Tour) $700,000 Subtotal – Capacity Building for Project Towns $700,000

TOTAL $2,500,000

VII. SAFEGUARDS

(i) Environmental Aspects

1. The Project is classified as environment category A. Extensive public consultations involving surveys, meetings with stakeholders, and focus group discussions were undertaken during project preparation. The project EIA is based on the results of the EIAs prepared for three core subprojects, which present the types and nature of subsequent subprojects under the Project. An SEIA was prepared and circulated to ADB’s Board of Directors, and posted on the ADB website on 20 October 2008. An environmental assessment and management framework for subsequent subprojects was also developed.

2. The Project is expected to generate substantial environmental benefits. Improved roads will reduce travel times and vehicle emissions per trip, thereby helping improve air quality.

Water supply and wastewater treatment will reduce the discharge of pollutants to rivers and groundwater. River improvement will provide flood protection, thereby reducing economic loss and public health hazard due to flooding. District heating and gas supply will improve efficiency, eliminate a considerable number of small and inefficient boilers, reduce the quantity of coal used, and replace coal-burning stoves in individual dwelling units, thus reducing the emission of greenhouse gases. This Project will have positive effects on climate change, supporting the PRC’s climate change initiatives.

3. Adverse impacts on the physical and natural environment during the construction and operating phases of the Project will be largely insignificant, given strong project management and implementation of recommended mitigation measures identified in the environmental management plan. The plan includes institutional strengthening for implementing mitigation measures and undertaking monitoring requirements, and will be continuously developed as the Project progresses to provide more details so that all mitigation requirements are met.

4. The subsequent subprojects under this sector loan are required to meet ADB’s environmental impact assessment requirements. An environmental assessment and management framework (see below) was prepared as an instruction manual to assist the Shanxi PMO, subproject PMOs, implementing agencies, and local design institutes in preparing and reviewing EIA reports and environmental management plans for subsequent subprojects according to ADB requirements. It describes the environmental criteria for selecting and implementing subprojects, key environmental issues, conduct of the EIA, preparation of the EIA reports, and review procedures. Training was provided to SPG on implementing the environmental assessment and management framework.

5. The Project supports climate change adaptation including (i) incorporation of climate change issues, such as energy efficient measures, in urban master plans; (ii) comprehensive water management, such as long-term water availability forecasting for new development areas and adopting comprehensive water balance measures during project implementation; (iii) sustainable wastewater and solid waste management including sludge digestion and biogas extraction; (iv) improved urban roads management and reduced pollution from cars through improved connectivity and better travel conditions; and (v) promotion of clean energy for more efficient central heating.

(II) Environmental Assessment and Management Framework

6. The Project is a sector loan that includes core subprojects that have already been prepared and appraised and subsequent projects that will be appraised during implementation.

The three core subprojects are Pingyao County, Wutong Town (Xiaoyi City), and Youyu County.

A Summary Environmental Impact Assessment (SEIA) report and an Environmental Management Plan (EMP) have been prepared under this PPTA for these subprojects. The subsequent subprojects coming on line under this sector loan will also be required to meet the environmental impact assessment requirements of the Asian Development Bank. This report is prepared as an instruction manual to assist the provincial Project Management Office (PMO), the subproject PMOs, the executing agency (EA), the implementing agencies (IAs) and the local design institutes (LDI) in the preparation and review of the environmental impact assessment (EIA) report and the environmental management plan (EMP) for the non-core subprojects according to ADB requirements.

7. This Project has been classified by ADB as a Category A project. As such, an EIA report and an EMP must be prepared for the core subprojects. It is understood that some non-core subprojects may only need an environmental impact assessment table under the domestic system. The environmental impact assessment table does not meet ADB requirements. Further, all domestic environmental impact assessment approval, whether in report or table form, must be by the provincial Environmental Protection Bureau (EPB). In terms of the number of reports, each province has the flexibility of preparing (i) one EIA report and one EMP for all subprojects combined, (ii) one EIA report and one EMP for each subproject, or (iii) one EIA report and one EMP for each component of a subproject. For simplicity, the use of the term ‘project’ in this document refers to a subproject that may have a number of components, or a single component in a subproject.

8. This report describes the environmental criteria in selecting projects, their key environmental issues, steps in conducting the EIA study and preparing the EIA report and EMP, and procedures for reviewing the reports.