China Plastic Waste Reduction Project (P174267) — Batch 2 Subprojects of the Ningbo Project Social Audit Report Ningbo PMO July 20, 2022 Executive Summary The Ningbo Municipal Solid Waste Smart Sorting, Collection and Recycling Project (hereinafter, the “Project”) is a subproject of the lately approved China Plastic Waste Reduction Project (P174267), which comprises three key components of (a) policy and institutional strengthening, (b) investment in the smart municipal solid waste management and resource recycling systems, and (c) project management and capacity building. In the preparation stage, Ningbo PMO has conducted an SIA on Batch 1 subprojects which involve no major civil works (Batch 1 subprojects1), and prepared relevant E&S management documents (e.g., ESMF, SIA, SEP) which were approved by the Bank in February 2021. According to the project implementation plan, Batch 2 subprojects include: (1) a waste water treatment plant (WWTP) of Ningbo resource recycling base; (2) a centralized plastic waste sorting and processing plant; (3) a bulky and decoration waste disposal plant; and (4) four recyclables sorting centers. In addition, the WWTP of Ningbo resource recycling base will treat wastewater from the Haishu District landfill, Ningbo food waste disposal plant and Ningbo kitchen waste disposal plant, so these wastewater generating facilities and the offsite sewer lines are defined as associated facilities. According to the ESF and the Project’s ESMF, the social team conducted a detailed social audit on Batch 2 subprojects and associated facilities. According to the current situation and characteristics of the Project, the subproject activities will be carried out in the urban area of Ningbo City where there are neither concentrated ethnic minority villages nor tangible or intangible cultural heritages. Therefore, this social audit focuses on the aspects concerning land use, labor and working conditions, community health and safety, public participation, and grievance redress, among others. This social audit for each subproject is summarized as follows: WWTP of Ningbo resource recycling base: The current leachate treatment station of the Haishu District landfill will be expanded. Except the land used for the WWTP of Ningbo resource recycling base, this social audit also covers the operation, management and other social aspects of the existing wastewater treatment facility, including labor and working conditions, community health and safety, public participation, grievance redress, etc. Centralized plastic waste sorting and processing plant: It is a new construction, and the land has not been acquired, so it is not included in this social audit. Bulky and decoration waste disposal plant: It is a new construction, and LA had been completed by project preparation. This social audit is focused on land use and resettlement. Recyclables sorting centers: Batch 2 subprojects include 4 recyclables sorting centers, in which two are reconstructed from existing facilities (Jiangshan recyclables sorting center in Yinzhou District, and Gulin recyclables sorting center in Haishu District), and two are going 1 Including construction of an urban smart waste management system, integration of the Ningbo domestic waste management platform with the existing recycling network “Helper”, and output -based incentive mechanism I to be constructed (Zhenhai and Beilun recyclables sorting centers). For the existing facilities, this social audit mainly covers land use, labor and working conditions, community health and safety, public participation, grievance redress, etc.; for the facilities to be constructed, this social audit is focused on land use and resettlement. In addition, this social audit also covers the associated facilities. Except that the sewer lines delivering wastewater to the WWTP to be newly constructed, the other associated facilities are all existing facilities. The sewer lines are new facilities that are constructed along with the WWTP, so this social audit is also focused on pipeline construction. Except the 4 recyclables sorting centers, Batch 2 subprojects and associated facilities are all located in Ningbo resource recycling base in Dongqiao Town of Haishu District, with a planned area of 2.58 km2, and with no community within 1km around. Among Batch 2 subprojects, the existing facilities are the WWTP to be reconstructed, and two recyclables sorting centers (Jiangshan recyclables sorting center in Yinzhou District, and Gulin recyclables sorting center in Haishu District). The existing facilities have no high social risk. WWTP: It will be reconstructed on the current site, and its land ownership has no outstanding issue. It does not involve LAR risks. The company has entered into labor contracts with laborers, is free from child and forced labor, and has established an EHS department and an OHS system, including the construction and maintenance of occupational health protection facilities, PPE, occupational health monitoring and evaluation, publicity, worker health monitoring, etc. Based on the field survey and interviews, OHS risks are “moderate”. However, the company’s LMP has no specific requirement for contractor and primary supplier management. Recyclables sorting centers: Based on the currently selected sites, though the land used has been acquired and reserved by the government, the land use plan does not comply with the master land utilization plan, and the PIU has not reached an agreement with the government to receive the land use right, so land use risks are “moderate”. According to the survey on the existing sorting centers in Jiangshan Town, Yinzhou District and Gulin Town, Haishu District, since all recyclables are from smart waste separation cabins in urban communities, they are relatively clean. During waste sorting, worker occupational health risks are relatively minor, and the recyclable sorting centers have developed on-site operating regulations, and offer PPE for free to reduce occupational hazards. The PIU2 has established a LMP, but the social team found during the survey that some workers did not wear PPE (face masks, gloves, etc.) as required at work, and temporary workers might have not entered into a labor contract. Sound traffic risk control measures have been taken for vehicles, such as GPS speed monitoring, speed limit, voice prompt and anti-fatigue, and waste collection and transfer routes are kept away from densely populated communities. Therefore, traffic and community safety risks are “moderate”. Bulky and decoration waste disposal plant: It will be built on land acquired and reserved by the government, but it was found during the survey that some attachments on site were to 2 It is also a PIU of Batch 1 subprojects. II be cleared, and the PIU had not received a certificate of land use right, and its LAR risks are deemed “moderate”. For the associated facilities, a certificate of the right to use state-owned land has been obtained for the Haishu District landfill, Kaicheng Kitchen Waste Plant, and the Shouchuang Kitchen Waste Plant, so its LAR risks are “low”. The company has entered into labor contracts with laborers with no child or forced labor, and has established an EHS department and an OHS system, including the construction and maintenance of occupational health protection facilities, PPE, occupational health monitoring and evaluation, publicity, and worker health monitoring, etc. Based on the field survey and interviews, OHS risks are “low”. However, the company’s LMP has no specific requirement for contractor and primary supplier management. The Kaicheng Kitchen Waste Plant and Shouchuang Kitchen Waste Plant have developed strict waste collection and transfer management measures, and use fully sealed vehicles for transport via fixed routes, with minor community disturbances. In addition, it is found that adequate information disclosure and public participation were conducted for the existing and associated facilities of Batch 2 subprojects during the EIA, social stability risk assessment, and LAR. However, compared to the Bank’s ESF, the existing and associated facilities of Batch 2 subprojects need to be strengthened in community health and safety, communication, grievance redress, etc., such as disclosing E&S monitoring reports to the public regularly (especially water and air quality data), and responding to community concerns positively. The social team has proposed the following suggestions on the basis of adequate communication with Ningbo PMO and PIUs to comply with both the domestic regulations and the Bank’s ESF: • Labor and working conditions: The PIUs and associated facility operators should improve the requirements for contracted and primary suppliers’ workers in the Labor Management Procedure (LMP), and strengthen the protection of their rights and obligations according to ESS2. • Community health and safety: The PIUs and associated facility operators should conduct E&S monitoring on Batch 2 subprojects, especially water and air quality, disclose monitoring data to nearby communities timely, and communicate with nearby communities regularly to handle their concerns (e.g., odor). • LAR: For LAR, Ningbo PMO and PIU conducted adequate consultation with the agencies concerned (Ningbo Municipal Natural Resources and Planning Bureau, and district urban administration bureaus), and agreed on the following action plan: 1) Complete the land use adjustment of the relevant facilities and obtain approval by October 2022 to comply with Ningbo’s master land utilization plan; 2) The PIU will obtain land use rights: ① The PIU will obtain the land use rights for the bulky and decoration waste disposal plant, and centralized plastic waste sorting and processing plant by the end of December 2022 by transfer under an agreement, with a transfer fee of about 700,000 yuan/mu; ② After the land use plan for sanitation facilities is approved, the district governments will allocate the land to the district sanitation authorities, and the PIU will lease such land to construct III sorting centers for 30 years. The land for the sorting centers in Zhenhai and Jiangbei Districts is expected to be obtained by the end of 2022, and that for those in Yinzhou and Haishu District is expected to be obtained by the end of 2023. The rental is about 50,000 yuan/mu for the 30-year land leasing; and ③ All land use costs will be borne by the PIU. • GRM: The PIUs and associated facility operators should improve the GRM, conduct information disclosure and public participation, and respond to community concerns positively according to ESS10 and the Stakeholder Engagement Plan (SEP) of the Project. Table 9-1 in Part 9 of this report summarizes the issues identified in this social audit and the corresponding suggestions. Ningbo PMO will monitor and evaluate the effectiveness of the relevant mitigation measures continually, and report to the Bank regularly. IV Contents 1 PART 1: SUMMARY ...................................................................................................................................................................... 1 1.1 BACKGROUND ...................................................................................................................................................................................................... 1 1.2 SCOPE ................................................................................................................................................................................................................... 5 1.3 PURPOSE AND METHODS OF THE SOCIAL AUDIT ............................................................................................................................................ 9 1.3.1 Purpose ................................................................................................................................................................................................... 9 1.3.2 Methods .................................................................................................................................................................................................. 9 1.4 REGULATORY AND INSTITUTIONAL FRAMEWORK ..................................................................................................................................... 10 1.4.1 Applicable social laws, regulations and policies of China ............................................................................................... 10 1.4.2 Bank ESF ............................................................................................................................................................................................. 13 1.5 LIMITATIONS .................................................................................................................................................................................................... 14 2 PART 2: SOCIAL AUDIT REPORT ON THE WWTP OF THE NINGBO RESOURCE RECYCLING BASE ................16 2.1 INTRODUCTION TO THE WWTP OF THE NINGBO RESOURCE RECYCLING BASE.................................................................................... 16 2.2 LABOR AND WORKING CONDITIONS (ESS2) ............................................................................................................................................... 17 2.2.1 Employment terms and conditions ........................................................................................................................................... 17 2.2.2 Labor protection .............................................................................................................................................................................. 19 2.2.3 Labor OHS .......................................................................................................................................................................................... 20 2.2.4 Contracted workers ........................................................................................................................................................................ 22 2.2.5 Worker GRM ...................................................................................................................................................................................... 23 2.3 COMMUNITY HEALTH AND SAFETY (ESS4) ................................................................................................................................................ 24 2.3.1 Impacts of facility operation on community health and safety .................................................................................... 24 2.3.2 Community communication mechanism ................................................................................................................................ 25 2.4 LAR (ESS5) .................................................................................................................................................................................................... 25 2.5 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 25 3 PART 3: SOCIAL AUDIT REPORT ON ASSOCIATED FACILITY 1 OF THE WWTP —HAISHU DISTRICT LANDFILL.................................................................................................................................................................................................27 3.1 INTRODUCTION TO THE HAISHU DISTRICT LANDFILL ............................................................................................................................... 27 3.2 LAR (ESS5) .................................................................................................................................................................................................... 27 3.2.1 Resettlement impacts and implementation process .......................................................................................................... 28 3.2.2 LA compensation rates .................................................................................................................................................................. 29 3.2.3 Compensation ................................................................................................................................................................................... 30 3.2.4 Information disclosure and grievance redress .................................................................................................................... 30 3.3 COMMUNITY HEALTH AND SAFETY ............................................................................................................................................................... 30 3.3.1 Impacts of facility operation on nearby communities ...................................................................................................... 30 3.3.2 Community communication mechanism ................................................................................................................................ 31 3.4 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 31 4 PART 4: SOCIAL AUDIT REPORT ON ASSOCIATED FACILITY 2 OF THE WWTP —KAICHENG KITCHEN WASTE PLANT .......................................................................................................................................................................................32 4.1 INTRODUCTION TO KAICHENG KITCHEN WASTE PLANT .......................................................................................................................... 32 4.2 LABOR AND WORKING CONDITIONS (ESS2) ............................................................................................................................................... 32 4.2.1 Employment terms and conditions ........................................................................................................................................... 32 4.2.2 Labor protection .............................................................................................................................................................................. 34 4.2.3 Labor OHS and protective facilities.......................................................................................................................................... 34 4.2.4 Primary suppliers’ workers ......................................................................................................................................................... 38 4.2.5 Worker GRM ...................................................................................................................................................................................... 38 4.3 COMMUNITY HEALTH AND SAFETY (ESS4) ................................................................................................................................................ 39 4.3.1 Impacts of vehicles on community health and safety ........................................................................................................ 39 4.3.2 Community disturbances by vehicles ....................................................................................................................................... 39 4.3.3 Impacts of plant operation on community health and safety ........................................................................................ 40 4.4 LAR (ESS5) .................................................................................................................................................................................................... 40 4.4.1 Resettlement impacts and implementation process .......................................................................................................... 41 4.4.2 LA compensation policies and rates ......................................................................................................................................... 42 4.4.3 HD resettlement ............................................................................................................................................................................... 43 V 4.4.4 Information disclosure and grievance redress .................................................................................................................... 44 4.4.5 Resettlement satisfaction survey ............................................................................................................................................... 45 4.5 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 46 5 PART 5: SOCIAL AUDIT REPORT ON ASSOCIATED FACILITY 3 OF THE WWTP —SHOUCHUANG KITCHEN WASTE PLANT .......................................................................................................................................................................................48 5.1 INTRODUCTION TO SHOUCHUANG KITCHEN WASTE PLANT.................................................................................................................... 48 5.2 LABOR AND WORKING CONDITIONS (ESS2) ............................................................................................................................................... 48 5.2.1 Employment terms and conditions ........................................................................................................................................... 48 5.2.2 Labor protection .............................................................................................................................................................................. 49 5.2.3 Labor OHS .......................................................................................................................................................................................... 50 5.2.4 Primary suppliers’ workers ......................................................................................................................................................... 54 5.2.5 Worker GRM ...................................................................................................................................................................................... 54 5.3 COMMUNITY HEALTH AND SAFETY (ESS4) ................................................................................................................................................ 54 5.3.1 Impacts of vehicles on community health and safety ........................................................................................................ 54 5.3.2 Impacts of plant operation on community health and safety ........................................................................................ 55 5.4 LAR (ESS5) .................................................................................................................................................................................................... 56 5.5 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 56 6 PART 6: SOCIAL AUDIT REPORT ON ASSOCIATED FACILITY 4 OF THE WWTP —OFFSITE SEWER LINES .58 7 PART 7: SOCIAL AUDIT REPORT ON BULKY AND DECORATION WASTE DISPOSAL PLANT ...........................59 7.1 INTRODUCTION TO THE BULKY AND DECORATION WASTE DISPOSAL PLANT ......................................................................................... 59 7.2 LAR (ESS5) .................................................................................................................................................................................................... 59 7.3 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 62 8 PART 8: SOCIAL AUDIT REPORT ON THE 4 RECYCLABLES SORTING CENTERS ..................................................63 8.1 OVERVIEW OF THE SORTING CENTERS ......................................................................................................................................................... 63 8.2 LAR (ESS5) .................................................................................................................................................................................................... 63 8.3 LABOR AND WORKING CONDITIONS (ESS2) ............................................................................................................................................... 68 8.4 COMMUNITY HEALTH AND SAFETY (ESS4) ................................................................................................................................................ 70 8.4.1 Impacts of vehicles on community health and safety ........................................................................................................ 70 8.4.2 Impacts of facility operation on community health and safety .................................................................................... 71 8.5 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 71 9 PART 9: KEY CONCLUSIONS OF THE SOCIAL AUDIT ......................................................................................................73 9.1 CONCLUSIONS ................................................................................................................................................................................................... 73 9.2 ISSUES AND SUGGESTIONS FOR CORRECTION .............................................................................................................................................. 74 APPENDIXES ...........................................................................................................................................................................................80 APPENDIXES 1 REFERENCES FOR THE SOCIAL AUDIT........................................................................................................................................... 80 APPENDIXES 2 LIST OF INTERVIEWEES ................................................................................................................................................................... 82 APPENDIXES 3 FIELDWORK AND INTERVIEWS....................................................................................................................................................... 83 VI List of Tables TABLE 1-1 LIST OF PROJECT ACTIVITIES ........................................................................................................................................................................ 2 TABLE 1-2 FRONT-END COLLECTION AND TRANSFER SYSTEM FOR THE BATCH 2 SUBPROJECTS ........................................................................ 4 TABLE 1-3 IDENTIFICATION OF THE BATCH 2 SUBPROJECTS AND ASSOCIATED FACILITIES ................................................................................... 6 TABLE 1-4 STATE LAWS AND REGULATIONS ON LABOR AND WORKING CONDITIONS ........................................................................................... 11 TABLE 1-5 STATE LAWS AND REGULATIONS ON LAR ................................................................................................................................................ 12 TABLE 1-6 STATE LAWS AND REGULATIONS ON STAKEHOLDER ENGAGEMENT ..................................................................................................... 13 TABLE 1-7 APPLICABILITY OF BANK ESSS TO EXISTING FACILITIES OF THE BATCH 2 SUBPROJECTS .............................................................. 14 TABLE 2-1 FINDINGS AND SUGGESTIONS ON WWTP RECONSTRUCTION AND EXPANSION ................................................................................. 25 TABLE 3-1 SUMMARY OF LAND ACQUIRED FOR THE HAISHU DISTRICT LANDFILL................................................................................................ 28 TABLE 3-2 LA COMPENSATION RATES FOR THE HAISHU DISTRICT LANDFILL ...................................................................................................... 29 TABLE 3-3 LA COMPENSATION FOR THE HAISHU DISTRICT LANDFILL (UNIT: 0,000 YUAN) ............................................................................ 30 TABLE 3-4 FINDINGS AND SUGGESTIONS ON THE HAISHU DISTRICT LANDFILL .................................................................................................... 31 TABLE 4-1 BLOCK COMPREHENSIVE LAND PRICES OF YINZHOU DISTRICT ............................................................................................................ 42 TABLE 4-2 HD COMPENSATION RATES ......................................................................................................................................................................... 42 TABLE 4-3 INFORMATION DISCLOSURE AND PUBLIC PARTICIPATION ON LAR ...................................................................................................... 44 TABLE 4-4 RESETTLEMENT SATISFACTION SURVEY FORM ........................................................................................................................................ 46 TABLE 4-5 FINDINGS AND SUGGESTIONS ON KAICHENG KITCHEN WASTE PLANT .............................................................................................. 46 TABLE 5-1 FINDINGS AND SUGGESTIONS ON SHOUCHUANG KITCHEN WASTE PLANT......................................................................................... 57 TABLE 7-1 FINDINGS AND SUGGESTIONS ON THE BULKY AND DECORATION WASTE DISPOSAL PLANT .............................................................. 62 TABLE 8-1 SUMMARY OF BASIC INFORMATION OF RECYCLABLES SORTING CENTERS ........................................................................................... 63 TABLE 8-2 FINDINGS AND SUGGESTIONS ON THE RECYCLABLES SORTING CENTERS............................................................................................. 71 TABLE 9-1 SUMMARY OF ISSUES IDENTIFIED IN THIS SOCIAL AUDIT AND SUGGESTIONS FOR CORRECTION ...................................................... 75 List of Figures FIGURE 1-1 LOCATION MAP OF THE BATCH 2 SUBPROJECTS AND ASSOCIATED FACILITIES .................................................................................... 8 FIGURE 2-1 PLAN OF WWTP RECONSTRUCTION AND EXPANSION ......................................................................................................................... 17 FIGURE 2-2 SAMPLE LABOR CONTRACT OF MINGZHOU COMPANY .......................................................................................................................... 19 FIGURE 2-3 ON-SITE WARNING SIGNS........................................................................................................................................................................... 21 FIGURE 2-4 LABOR UNION CHAIRMAN’S MAILBOX AND COMPLAINT BOX ............................................................................................................. 23 FIGURE 2-5 LAYOUT OF KEY SOCIAL SENSITIVE SITES ................................................................................................................................................ 24 FIGURE 3-1 TEMPORARY CLOSURE OF THE LANDFILL ................................................................................................................................................ 27 FIGURE 3-2 LAR CONTRACTING AGREEMENT FOR THE LANDFILL (2005) ........................................................................................................... 29 FIGURE 3-3 DECISION ON STATE-OWNED LAND ALLOCATION FOR THE LANDFILL (2016) ................................................................................ 29 FIGURE 4-1 SAMPLE LABOR CONTRACT OF KAICHENG COMPANY............................................................................................................................ 33 FIGURE 4-2 DEODORIZATION EQUIPMENT OF KAICHENG KITCHEN WASTE PLANT............................................................................................. 35 FIGURE 4-3 ACOUSTIC HOOD ......................................................................................................................................................................................... 35 FIGURE 4-4 FIRE-FIGHTING DEVICES IN THE PLANT.................................................................................................................................................. 37 FIGURE 4-5 EMERGENCY DRILLS.................................................................................................................................................................................... 37 FIGURE 4-6 LABOR UNION CHAIRMAN’S MAILBOX AND COMPLAINT BOX ............................................................................................................. 39 FIGURE 4-7 DECISION ON LAND ALLOCATION FOR KAICHENG KITCHEN WASTE PLANT ..................................................................................... 41 FIGURE 4-8 APPROVAL OPINION ON CONSTRUCTION LAND OF ZHEJIANG PROVINCE (NO.: ZTZ (2014)-0266) ......................................... 41 FIGURE 4-9 DONGXUAN GARDEN (RESETTLEMENT COMMUNITY) ......................................................................................................................... 44 FIGURE 5-1 OCCUPATIONAL HAZARD INFORMING CARDS AT DIFFERENT PLACES ................................................................................................. 52 FIGURE 5-2 EMERGENCY EYE SPRINKLER IN THE WASTEWATER TREATMENT AREA ............................................................................................ 53 FIGURE 5-3 EMERGENCY DRILLS.................................................................................................................................................................................... 53 FIGURE 5-4 WASTE TRANSFER ROAD AND VEHICLE ................................................................................................................................................. 55 FIGURE 5-5 DECISION ON STATE-OWNED LAND ALLOCATION FOR SHOUCHUANG KITCHEN WASTE PLANT ................................................... 56 FIGURE 7-1 COLLECTIVE BUILDING OF XUANPEI VILLAGE TO BE DEMOLISHED..................................................................................................... 60 FIGURE 7-2 NEW OFFICE BUILDING OF XUANPEI VILLAGE BEING DECORATED ..................................................................................................... 60 FIGURE 7-3 WORKER DORMITORY OF THE LANDFILL ................................................................................................................................................ 61 FIGURE 7-4 ABANDONED WORKSHOP AND EQUIPMENT ............................................................................................................................................ 61 FIGURE 8-1 COMPENSATION AGREEMENT FOR THE ZHENHAI DISTRICT RECYCLABLE SORTING CENTER ......................................................... 65 FIGURE 8-2 LA COMPENSATION PAYMENT VOUCHER FOR THE ZHENHAI DISTRICT RECYCLABLE SORTING CENTER ...................................... 65 FIGURE 8-1 CURRENT SITUATION OF SORTING CENTER ............................................................................................................................................. 68 FIGURE 8-4 NOTICES OF JOB RESPONSIBILITIES AND SAFETY INSTRUCTIONS ........................................................................................................ 69 VII Acronyms and Abbreviations E&S Environmental and Social EIA Environmental Impact Assessment ESF Environmental and Social Framework ESMF Environmental and Social Management Framework ESS Environmental and Social Standard FGD Focus Group Discussion GRM Grievance Redress Mechanism HD House Demolition LA Land Acquisition LAR Land Acquisition and Resettlement LMP Labor Management Procedure M&E Monitoring and Evaluation NMII Ningbo Municipal Public Utilities Investment Co., Ltd. OHS Occupational Health and Safety PIU Project Implementation Unit PMO Project Management Office PPE Personal Protection Equipment SIA Social Impact Assessment SEP Stakeholder Engagement Plan USD US Dollar WBG World Bank Group WWTP Wastewater Treatment Plant VIII 1 Part 1: Summary 1.1 Background China and the World Bank are working closely to implement the lately approved China Plastic Waste Reduction Project (P174267) which aims to strengthen national and sub-national policies, urban solid waste management systems, and institutions and operations towards reduced plastics leakage from municipal solid waste streams. In Ningbo – one of the demonstration cities under the new project, Ningbo Municipal Solid Waste Smart Sorting, Collection and Recycling Project (hereinafter, the “Project”) will be implemented, as part of the overall project. The Ningbo Project has a construction period of 5 years, and will be implemented in batches. The Project will support the establishment of a smart municipal solid waste separation, collection, transfer, recycling and treatment system that will employ smart waste separation techniques at source, and enhanced waste recycling and reuse towards the end. The project will help Ningbo achieve its 2025 targets of increasing precise waste separation at drop-off to 80%, solid waste recycling to 60%, and the recycling of plastic waste to 20% as of all recyclables. The Project has three components: (a) policy work and institutional strengthening, (b) smart solid waste management and resource recycling, and (c) project management and capacity building. According to the implementation arrangements, the Project will be implemented in batches, as detailed in Table 1-1. 1 Table 1-1 List of Project Activities Subproject Scope of construction PIU Batch 1.1 Output-based reward 1 1.2.1 Study on plastic pollution 1 reduction action plan for Ningbo 1.2.2 Study on evaluation methods for plastic pollution reduction effects of 1 Ningbo Ningbo 1. Policy work Municipal 1.2.3 Study on improvement of and 1.2 Solid Waste domestic waste collection policies of Soft component 1 institutional Technical Ningbo Separation strengthening assistance Guidance 1.2.4 Study on implementation rules Center 1 for waste sorting regulations of Ningbo 1.2.5 Study on regulation measures for 1 utilities (waste) sector 1.2.6 Public data security study based 1 on smart all-category waste cabins Deploying not less than 4,000 smart collection terminals over three years, covering about 2,200 residential communities, 2.1.1 Construction of a smart schools, government buildings, enterprises and institutions, management system for domestic commercial complexes, farmer’s markets and other public Dabashou 1 2.1 Waste 2. Smart solid waste in the urban area places in the entire project implementation area; procurement sorting, waste of 230 recyclables transportation trucks and 600 kitchen collection, management waste transportation trucks and and plastic transfer 2.1.2 Integration of Ningbo domestic recycling system waste management platform with the Soft component Dabashou 1 existing recycling network Construction of 9 sorting and transfer centers covering to sort 2.1.3 Recyclables sorting center Dabashou 2 and 3 out recyclables of paper, plastic, textiles, metals, and glass, etc.; 2 Subproject Scope of construction PIU Batch 2.1.4 Home appliances dismantling Construction of a home appliances dismantling center, with a center and integrated management floor area of 20,000 m2 (about 30 mu3) and a building area of Dabashou 3 system 13,000 m2 (including dismantling line) Reconstructed and expanded from an existing leachate treatment plan, including demolishing the existing management room and two-stage A/O wastewater treatment system, constructing a regulating tank, two MBR complexes, a car washing center, a management room, enclosing walls, 2.2 WWTP of Ningbo resource recycling base Qingyuan 2 roads and landscaping, and purchasing and installing equipment After completion, the plant’s daily wastewater treatment capacity will be 2,500 m3/d (1,800 m3/d from new construction and 700 m3/d from reconstruction). With a planned land area of 57,000 m2 (85.5 mu), a building 2.3 Centralized plastic waste sorting and processing area of 60,000 m2 and an annual plastic treatment capacity of Haijing 2 plant 40,000 tons With a planned land area of 39,451 m2 (about 59.1mu), a building area of 22,150 m2 and an annual treatment capacity 2.4 Bulky and decoration waste disposal plant of 300,000 tons of decoration waste; also constructing a Meijing 2 45,000-ton bulky waste treatment line, an 82,000-ton RDF treatment line and an 18 million-brick regeneration line 3.1 Technical upgrading of digital waste separation 1 management platform Ningbo 3. Project 3.2 Study on publicity evaluation plan for smart Municipal management Solid Waste 1 waste separation in residential communities and capacity Separation building 3.3 Planning of waste separation publicity activities Guidance 1 3.4 Print production, training and seminars on Center 1 waste separation Source: Feasibility Study Report of the Project (final) 3 Mu is Chinese land area measurement unit. 1 mu=666.67 m2 3 In the preparation stage, since the details (including site, scale, technical solution, etc.) for some subprojects were still unclear, the E&S documents of the Project are prepared and assessed as follows: • Prepare E&S framework documents for the whole Project, including ESMF, SEF and ESCP; • Prepare detailed E&S management documents for any identified subproject, including SIA report, LMP, SEP, RAP (if required), etc. According to the above principles and methods, Ningbo PMO has prepared the E&S management documents (including ESMF, ESCP and SEF) for the Project in the preparation stage (2020-2021), and a detailed SIA report for Batch 1 subprojects. These documents were approved by the Bank in February 2021. Batch 1 subprojects comprise mainly activities that involve no major construction: - 1 Policy work and mechanism strengthening; - 2.1.1 Construction of a smart management system for domestic waste in the urban area; - 2.1.2 Integration of Ningbo domestic waste management platform with the existing recycling network. Ningbo PMO and PIUs have identified Batch 2 subprojects, including: - 2.2 WWTP of the Ningbo resource recycling base; - 2.3 Centralized plastic waste sorting and processing plant - 2.4 Bulky and decoration waste disposal plant; and - 2.1.3 4 recyclables sorting centers See Table 1-2 for the front-end collection and transfer system for Batch 2 Subprojects. Table 1-2 Waste Collection and Transfer System for Batch 2 Subprojects Subproject Collected by Transfer mode Smart all-category waste collection cabins under Recyclable truck and the integration of Ningbo’s existing domestic Recyclables sorting center enclosed waste truck (with waste management network and waste recycling hooked arm) network Kaicheng Kitchen Waste Plant, Shouchuang WWTP of Ningbo resource Kitchen Waste Plant, centralized plastic waste Municipal sewer network recycling base sorting and processing plant (Batch 2 (offsite sewer lines) subprojects), and Haishu landfill Centralized plastic waste sorting Recyclables sorting center, bulky and decoration Truck and processing plant waste disposal plant Bulky and decoration waste Recyclables sorting center Truck disposal plant 4 1.2 Scope Since the centralized plastic waste sorting and processing plant is a new subproject, for which land has not been acquired, it is not included in this social audit4. Therefore, the scope of this social audit is: • Batch 2 subprojects, which are: 1) WWTP of the Ningbo resource recycling base; 2) bulky and decoration waste disposal plant; and 3) two existing ones of the 4 recyclables sorting centers (Jingshan and Haishu) • Associated facilities of the WWTP of Ningbo resource recycling base5: which are: 1) Haishu District landfill; 2) Ningbo food waste disposal plant (Phase 2); 3) Ningbo kitchen waste disposal plant (Phase 2); and 4) offsite sewer lines. Except the 4 recyclables sorting centers, Batch 2 subprojects and associated facilities are all located in the Ningbo resource recycling base in Dongqiao Town of Haishu District, with a planned area of 2.58 km2. The 4 recyclables sorting centers are located in 4 urban districts (Zhenhai, Beilun, Yinzhou and Haishu), in which the recyclables sorting centers in Yinzhou and Haishu Districts will be reconstructed from the existing facilities, and the other two recyclables sorting centers are to be newly constructed. See Table 1-3 and Figure 1-1. In sum, this report is the summary social audit report on Batch 2 subprojects (except the centralized plastic waste sorting and processing plant) and associated facilities, mainly including: • Part 1: Introducing the project background, and social audit methods, and comparing China’s laws and regulations with the Bank ESSs); • Part 2: Social audit report on the existing facilities of the WWTP of the Ningbo resource recycling base; • Part 3: Social audit report on Associated Facility 1 of the WWTP - Haishu District landfill; • Part 4: Social audit report on Associated Facility 2 of the WWTP - Kaicheng Kitchen Waste Plant (Phase 2); • Part 5: Social audit report on Associated Facility 3 of the WWTP - Shouchuang Kitchen Waste Plant (Phase 2); • Part 6: Social audit report on Associated Facility 4 of the WWTP - Offsite Sewer Lines (temporary land occupation); • Part 7: Social audit report on the bulky and decoration waste disposal plant; • Part 8: Social audit report on the 4 recyclables sorting centers; • Part 9: Summarizing conclusions and suggestions; and • Appendixes: Lists of reviewed documents, vouchers on subproject LAR, fieldwork photos, a list of interviewees, etc. 4This subproject is included in the social audit on Batch 2 subprojects. A separate RAP has been prepared for LA. These facilities meet all three criteria set in Para 11 of ESS1. The social audit confirms that the E&S risks and 5 impacts management practice. Therefore, the ESSs apply to these facilities within the influence of Ningbo PMO. 5 Table 1-3 Identification of Batch 2 subprojects and associated facilities Existing primary No. Subproject Existing facility Associated facilities Key social risks supplier6 Except the offsite sewer lines, this social audit is focused - Haishu District landfill on: (closed down in August LAR 2017, now being a backup To be purchased Worker OHS Reconstruction and expansion of the landfill) WWTP of Ningbo through bidding, 1 existing leachate treatment station in - Ningbo food waste Community health and safety resource recycling base mostly being drug the Haishu landfill disposal plant (operating) Public participation and suppliers - Ningbo kitchen waste grievance redress; and disposal plant (operating) Land use - Offsite sewer lines For the offsite sewer lines: Land use Recyclables sorting Centralized plastic waste New construction, no existing facility, center, and 2 sorting and processing None None acquiring collective woodland collection and plant transfer system None, collected and New construction, no existing facility; transferred as Bulky and decoration state-owned land obtained in 2004, required by 3 None LAR waste disposal plant involving the relocation of facilities, the households right to use not obtained through the smart platform7 New construction, no existing facility; Zhenhai reserved state-owned land, the land None, from 4 None LAR recyclables recyclables District utilization plan to be adjusted, the right 4 to use not obtained dumped by sorting residents in smart centers Beilun New construction, no existing facility; None waste cabins LAR District reserved state-owned land, the land 6 Primary suppliers are those who, on an ongoing basis, provide directly to the project goods or materials for the core functions of the project. 7 This activity has been included in the SIA of Batch 1 subprojects, and a social action plan developed. 6 Existing primary No. Subproject Existing facility Associated facilities Key social risks supplier6 utilization plan to be adjusted, the right to use not obtained Jiangshan Existing site, reconstructed from Town, existing facility; leased state-owned None LAR Yinzhou land, the land utilization plan to be Worker OHS District adjusted, the right to use not obtained Community health and safety Gulin Existing site, reconstructed from Public participation and Town, existing facility; leased state-owned None grievance redress Haishu land, the land utilization plan to be District adjusted, the right to use not obtained Source: field survey 7 Figure 1-1 Location map of Batch 2 subprojects and associated facilities 8 1.3 Purpose and methods of the social audit 1.3.1 Purpose The social audit aims to analyze the existing social risk management level of the subprojects based on the Bank’s ESF for the following purpose: • Identifying and analyzing potential major social impacts and risks in the existing facilities, especially in relation to Labor and Working Conditions (ESS2), Community health and safety (ESS4), Land Acquisition, Restriction on Land Use and Involuntary Resettlement (ESS5), and Stakeholder Engagement and Information Disclosure (ESS10); • Proposing suggestions to solve social issues based on the social audit results to ensure that Batch 2 subprojects and associated facilities meet the applicable Bank ESSs and Chinese regulations within a reasonable period; • Learning local communities’ attitudes to and concerns about the proposed subprojects, and providing a basis for identifying potential social impacts and risks, and developing more effective mitigation measures 1.3.2 Methods The following methods were used in the social audit: 1) Literature review: The social team searched for information on project construction and social stability by means of Ningbo PMO, district and town governments, and online search engines, such as approval documents, special reports, organizational charts, and personnel management systems and practices. 2) Field visit: The social team conducted field visits to the subproject sites to learn nearby E&S sensitive sites, identify potential social factors, and evaluate on-site management level. 3) Key informant interview: The social team interviewed the owners and agencies concerned • PIUs: To understand the types of works, jobs, labor management policies and implementation, and potential risks; frequency of vehicles, communities passed through and potential risks; worker and resident grievances, and their handling • District and town LAR staff: District and town LAR staff was interviewed to learn the LA process, compensation rates, resettlement process and effectiveness, grievance redress, and outstanding issues. • Officials of affected communities: The social team interviewed village officials and villagers in communities affected by LAR to learn compensation allocation, information disclosure, grievance redress, and potential issues. 4) FGD: For the following stakeholders, the social team held FGDs • Workers of existing facilities: To understand workers’ perceptions of the working environment and potential risks, if the labor policies of the Project comply with the Chinese Labor Law and the Bank’s ESS2, and the Project’s potential disturbances to nearby residents and nearby residents’ attitudes to the existing facilities 9 • Nearby residents: learning attitudes to and suggestions on the environmental and traffic impacts of the existing facilities, and grievance redress channels and feedback • Persons affected by LAR: learning LA implementation, compensation, resettlement and outstanding issues • Residents in communities passed through by bulky and plastic waste: learning attitudes to and suggestions on traffic safety and environmental sanitation, accidents, and grievance redress channels and feedback 5) Door-to-door questionnaire survey: The social team also sampled some persons affected by LA for a questionnaire survey to learn LA implementation, compensation, resettlement, satisfaction with resettlement, and outstanding issues. 1.4 Regulatory and Institutional Framework The social audit is based on the applicable domestic laws and standards, and the Bank’s relevant ESSs. 1.4.1 Applicable social laws, regulations and policies of China China has established a sound system of laws and regulations on social security, covering social risk assessment, labor, LAR, stakeholder engagement, etc. 1) Social risk assessment The government of China has social risk management provisions on major investment projects. The Interim Measures for the Social Stability Risk Assessment of Major Fixed Asset Investment Projects stipulates, China requires that a social stability risk assessment be conducted around the legitimacy, rationality, feasibility and controllability of a project to determine its risk rating, and major decisions and surveys should cover all local stakeholders, fully collect their opinions, and propose risk prevention and mitigation measures, and an emergency plan. 2) Labor and working conditions ESS2 divides workers into four types, namely direct hires, contract workers, primary suppliers’ workers and community workers, which may be involved in the Project. “Direct hires” include managers, drives, repairmen, operators, etc. signing labor contracts directly with the owners; “contract workers” include staff hired by contractors, subcontractors, brokers, agents or intermediaries to do jobs related to the core functions of the Project, such as construction workers, cleaners, security guards and researchers; “primary suppliers’ workers” refer to workers of suppliers supplying necessary goods or raw materials for the core functions of the Project continually; and “community workers” refer to staff hired to perform or participating in community services, such as volunteers participating in publicity and guidance on waste sorting. Chinese laws and regulations have comprehensive provisions on child labor, discrimination, forced labor, working hours, minimum wages, labor safety and health, etc. For example, employers are prohibited from recruiting minors under 16 years; female and underage workers (16-18 years) are subject to special protection; laborers should not be discriminated against based on ethnic group, race, gender or religion; women enjoy the same employment rights as men; forced labor is 10 prohibited; employers must establish a sound labor safety and health system, and reduce occupational hazards. The government of China has also established a system of laws, regulations and industry standards to protect laborers’ OHS, including state laws and regulations, local regulations and bylaws, and health and safety standards of different industries. A multi-layer legal system for occupational health protection has been established. There are special laws that protect women’s labor rights, including the prohibition of sexual harassment. Table 1-4 State laws and regulations on labor and working conditions No. Policy Effective date 1 Labor Law of the PRC 2018 amendment 2 Provisions of the State Council on Working Hours of Workers and Staff 1995 3 Emergency Incident Response Law of the PRC 2007 4 Regulations on the Implementation of Labor Contract Law of the PRC 2008 5 Labor Contract Law of the PRC 2012 amendment 6 Special Rules on Labor Protection of Female Employees 2012 7 Law on the Prevention and Control of Occupational Diseases 2018 amendment 8 Tentative Provisions on the Payment of Wages 1995 9 Social Insurance Law of the PRC 2018 amendment 10 Regulations on Labor Protection in Workplaces Where Toxic Substances Are Used 2002 11 Regulations on the Prevention and Control of Pneumoconiosis 1987 12 Law of the PRC on the Protection of Minors 2020 amendment 13 Law of the PRC on the Protection of the Disabled 2018 amendment 14 Labor Dispute Mediation and Arbitration Law of the PRC 2007 15 Trade Union Law of the PRC 2009 amendment Notice of the Zhejiang Provincial Human Resources and Social Security Department on 16 2020 Doing a Better Job in Credit Regulation on Labor Security 17 Interim Measures of Zhejiang Province on the Agency of Labor and Social Security Affairs 2000 18 Measures for Labor Contract Management of Zhejiang Province 2003 19 Regulations of Zhejiang Province on the Protection of Minors 2010 20 Measures of Ningbo City on the Implementation of the Labor Contract System 1995 21 Opinions of Ningbo City on Further Strengthening Legal Assistance for Minors 2018 22 Measures for Labor Contract Management of Ningbo City 1999 3) LAR For LAR and compensation, etc., China has established a complete legal framework and policy system. Except the centralized plastic waste sorting and processing plant for which land has not 11 been acquired, the land for Batch 2 subprojects was fully reserved or acquired by the government during 2004-2018. See Table 1-5. Table 1-5 State laws and regulations on LAR Level Policy Effective date Land Administration Law of the PRC Amended on 2004-8-28 Effective from 1999-1-1, Regulations on the Implementation of the Land Administration Law of the PRC amended in 2014-7 Decision of the State Council on Deepening the Reform and Rigidly Enforcing 2004 Land Administration (SC [2004] No.28) Notice of the General Office of the State Council on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO 2006-4 [2006] No.29) State Guidelines on Improving Compensation and Resettlement Systems for Land 2004-11 Acquisition (MLR [2004] No.238) Notice of the Ministry of Land and Resources on Doing a Better Job in Land 2010-6-26 Acquisition Management Regulations on the Demolition of Urban Houses 2001-11-1 Urgent Notice of the General Office of the State Council on Carrying out Strict Land Acquisition and House Demolition Management, and Protecting the 2010 Lawful Rights and Interests of People Practically (SCO [2010] No.15) Notice of the Legal Affairs Office of the Zhejiang Provincial Government, and the Zhejiang Provincial Land and Resources Department on Further Regulating 2017-12-8 Land Acquisition Announcement Measures of Zhejiang Province on Land Acquisition Compensation and the Basic Living Security of Land-expropriated Farmers (Decree No.264 of the 2010-1-1 Zhejiang Provincial Government) Regulations of Zhejiang Province on the Administration of Urban House 2007-3-29 Zhejiang Demolition Province Notice of the Zhejiang Provincial Government on Adjusting and Improving and 2014 Land Acquisition Compensation and Resettlement Policies (ZPG [2014] No.19) Ningbo City Measures of Ningbo City for the Administration of House Demolition on 2002-2-1 Collectively Owned Land for Urban Construction Regulations of Ningbo City on the Demolition of Houses on Collectively Owned 2006-5-24 Land Rules for the Implementation of the Regulations of Ningbo City on the 2006-12-1 Demolition of Houses on Collectively Owned Land Regulations of Ningbo City on Monetary Compensation Rewards and Subsidies 2016-7 for the Expropriation of Houses on Collectively Owned Land Yinzhou Measures of Yinzhou District for Land Acquisition Compensation and 2002 District Resettlement (YDG [2002] No.24) 12 Level Policy Effective date Notice of the Yinzhou District Government on Adjusting Block Comprehensive 2014 Land Prices for Land Acquisition (YDG [2014] No.75) Notice of the Yinzhou District Government on Issuing the Measures of Yinzhou District for Land Acquisition Compensation and Resettlement (YDG [2014] 2014 No.77) Haishu Notice of the Haishu District Government on Re-promulgating Block 2017 District Comprehensive Land Prices for Land Acquisition (HDG [2017] No.83) According to the above laws and regulations, the basic principles for resettlement are as follows: • Adverse impacts should be minimized; • If resettlement is inevitable, replacement cost and compensation level should be determined in consultation with the affected villages and residents; • Necessary compensation and assistance is provided to the affected persons to increase their income and living standard, or at least restore them to the pre-project levels; • The affected persons receive sufficient information on compensation agreements, which are signed in full consultation with them; and • Special attention is paid to vulnerable groups. 4) Stakeholder engagement Chinese laws and regulations require that adequate information disclosure and public participation be conducted during the EIA, LAR and policy making to protect the participation right of citizens. Ningbo Municipal Government also stipulates that if any decision involves the interests of any certain group, such group should be consulted. Table 1-6 State laws and regulations on stakeholder engagement No. Policy Effective date 1 Land Administration Law of the PRC 2004 2 Measures for Public Participation in Environmental Impact Assessment 2019 Guidelines on the Grass-root Government Affairs Disclosure on Rural Collective Land 3 2019 Acquisition It can be seen that China has established a sound social security system, whose objective is consistent with the Bank’s social safeguard policy, i.e., to alleviate social risks and realize sustainable development. However, there are still some differences. 1.4.2 Bank ESF The Bank’s ESF has 10 ESSs. The basis of the social audit on a Bank-financed project is to analyze the relevance of the ESSs. Based on screening and analysis, the Batch 2 subprojects are not located in minority communities, and no minority community is collectively attached to the project area, so ESS7 does not apply; the Project is not a financial intermediary, so ESS9 does not apply; the Project does not involve cultural relics, so ESS8 does not apply. The applicable ESSs are ESS1, ESS2, ESS4, ESS5 and ESS10. See Table 1-7. 13 Table 1-7 Applicability of Bank ESSs to Existing Facilities of the Batch 2 subprojects No. ESS Relevant? Analysis Batch 2 subprojects involve large civil works, mainly including: 1) WWTP of Ningbo resource recycling base, 2) centralized plastic waste sorting and processing plant, 3) bulky and decoration waste disposal plant, and 4) 4 ESS1: Assessment recyclables sorting centers. The WWTP of Ningbo resource recycling base and Management of 1 Yes and two recyclables sorting centers (Yinzhou and Haishu Districts) are Environmental reconstructed, while the other works are newly constructed. Risks and Impacts The Project will involve social impacts and risks in many aspects during implementation, including LA, OHS, NIMBY risks, traffic safety, community health and safety, etc. Batch 2 subprojects involve direct hires, contract workers and primary suppliers’ workers mainly, and do not involve community workers. ESS2: Labor and Therefore, the requirements on working conditions, worker rights, GRM and 2 Working Yes OHS in this ESS apply to the Project. Conditions OHS risks are from the construction and operation stages mainly, including traffic, mechanical injury, falling and equipment operation risks, and health hazards from exposure to noise, dust, odor, etc. ESS4: Community Batch 2 subprojects may have health and safety risks, and traffic safety risks 4 Yes Health and Safety to nearby communities. This standard aims to minimize involuntary resettlement, and alleviate unavoidable and adverse economic and social impacts of land acquisition ESS5: Land and restriction on land use through a series of measures. acquisition, According to this social audit, the centralized plastic waste sorting and Restriction on Land 5 Yes processing plant in Batch 2 subprojects involves the acquisition of 87.5 mu Use and of collective woodland in Xuanpei Village, Dongqiao Town, Haishu District, Involuntary for which an RAP has been prepared. The land for the other subprojects is Resettlement land acquired or reserved by the government. Due diligence has been conducted on the land used for all subprojects. Information disclosure and consultation will run through the preparation, ESS10: Stakeholder construction and operation stages, with attention to the needs of project- Engagement and affected parties and vulnerable groups, such as workers, community 6 Yes Information residents, persons affected by LAR, and especially vulnerable groups. In Disclosure addition, different GRMs should be established for communities and workers. Source: social team summarized it based on information available. 1.5 Limitations The social audit was conducted within the scope of work approved by Ningbo PMO, and its results are based on the field visits and the documents provided by the PIUs, town and district governments, village committees, etc., and are subject to change. A site walkthrough, by nature, is limited in its ability to fully assess potential E&S liabilities or concerns associated with existing sites. Further investigations would be required to identify the presence or absence of potential E&S liabilities but are beyond detection by performance of the 14 scope of this social audit report. Laws and regulations, if referenced in this report, are provided for information purposes only and should not be construed as legal opinion or recommendation. In particular, the restrictions encountered during this social audit include: 1) This report focuses on relevant social aspects and dimensions that are in connection with Ningbo Batch 2 subprojects as required by the ESF. 2) The document review (e.g., labor contracts, LAR evidence) was conducted by random sampling. The sampling process was not designed to be a comprehensive document review, but rather to verify the current status by sampling for risk identification and assessment purposes. In addition, since the WWTP is located in Haishu District landfill, for which LA was completed around 2005. Due to the long time and local administrative division adjustment 8 , only some available LAR documents have been collected and reviewed. 3) Due to COVID-19, face-to-face interaction was much limited. Also, since some associated activities/facilities under previous Bank-financed project in Ningbo were completed many years ago and have copies of documents only, the social team was unable to review the original file for most permits and approvals were provided for review. Information provided to the social audit team was accepted in good faith and was assumed to be accurate unless written documentation or visual observations presented contradictions to this assumption. 4) Data collected during stakeholder engagement are deemed accurate to the extent that the information was provided by those consulted, which shall not to be construed as legal advice. 8 In 2016, Dongqiao Town was transferred from Yinzhou District to Haishu District. 15 2 Part 2: Social Audit Report on the WWTP of Ningbo resource recycling base The WWTP of Ningbo resource recycling base is located in the Haishu District landfill in southern Dongqiao Town of Haishu District, and will be reconstructed and expanded on the existing leachate treatment station. Civil work will include the demolition of the existing administrative room and two-stage wastewater treatment A/O system, construction of a conditioning tank, two MBR complexes, a vehicle washing center, an administrative room, an enclosing wall, roads, landscaping and other associated works, and the purchase and installation of process equipment. After completion, it will have a treatment capacity of 2,500m3/d, and receive wastewater from the following sources: • 500 m³ /d leachate treatment plant (related facility, as detailed in Chapter 3) • Expansion of Kaicheng Kitchen Waste Plant (Phase 2), with a capacity of 720m³ /d, expected to be completed in December 2021 (related facility, as detailed in Chapter 4); • Expansion of Shouchuang Kitchen Waste Plant, with a capacity of 800 m³ /d; expected to be completed in December 2021 (related facility, as detailed in Chapter 5); • Vehicle washing center, with a capacity of 120 m³ /d (Bank-financed, being part of the WWTP); and • Centralized plastic waste sorting and processing plant, with a capacity of 300 m³ /d (2025) (Bank-financed) Based on the fieldwork and screening results, the social audit (Part 2) is focused on the following social aspects: 1) labor and working conditions, 2) community health and safety, 3) LAR, and 4) public participation and grievance redress. In particular, public participation and grievance redress are overlapping issues that run through the whole lifecycle of this existing facility. 2.1 Introduction of the WWTP of Ningbo resource recycling base The leachate treatment station of Haishu District landfill is to be expanded. In 2014, Haishu District Urban Administration Bureau expanded the leachate treatment station to a capacity of 800m³ /d, which was put into trial operation in May 2015 and accepted in October 2015. From August 1, 2017, the landfill has been closed down temporarily. In the WWTP of Ningbo resource recycling base, the existing leachate treatment station will be reconstructed to treat both leachate and biogas fluid. 16 Figure 2-1 Plan of WWTP reconstruction and expansion 2.2 Labor and working conditions (ESS2) From August 1, 2017, the landfill has been closed down temporarily. The leachate treatment station is now operated and maintained by Ningbo Mingzhou Environment & Energy Co., Ltd. (Mingzhou Company) as entrusted by Haishu District Urban Administration Bureau. Mingzhou Company has 20 staff members responsible for wastewater treatment (3 managers and 17 operators), including 4 female workers, and the minimum age is 23 years. In addition, cleaning is outsourced to two cleaners of the Ningbo branch of Beijing Lianchuang Company. 2.2.1 Employment terms and conditions During the social audit, the following rules and regulations on worker management of Mingzhou Company were checked: • Personnel Management Measures; • Notice on Regulating the Recruitment Process • Training Management System; • Measures for Evaluation Management during Internship and Probation; • Measures for Temporary Worker Management; • Regulations on Payment of Duty Subsidies; • Measures for the Management of Paid Annual Leaves of Workers; • Measures for Compensation, Reward and Punishment for Road Traffic Accidents (Amended); • Intern Management System; 17 • Sample labor contract for direct hires. The WWTP adopts a comprehensive labor management system, providing clear written guide to worker management. Each employee is required to enter into a labor contract in written according to the template prepared by the Ningbo Municipal Labor and Social Security Bureau (see Figure 2-1), specifying the term, scope of work, workplace, working hours, rest time, remuneration, overtime pay, social insurance and benefits, labor conditions, contract change, termination and renewal, labor dispute settlement, etc. The company offers induction training to new hires to help them get familiar with the corporate policies and their jobs. The WWTP operates around the clock. The operators work on 3 shifts (8:00-16:00, 16:00- 0:00 and 0:00-8:00), while the other workers work on the day shift (8:00-12:00 and 13:00-17:00). Each shift works 5 days a week on average. Based on interviews with direct hires of Mingzhou Company, all of them have entered into a labor contract, are paid regularly, have covered social insurance and one fund (endowment, medical, unemployment, work-related injury and maternity insurance, and housing provident fund), rest on legal holidays, and are entitled to overtime pay and other basis benefits as stipulated by law. The company conducts a health checkup for all employees annually. After checking with the Haishu District Human Resources and Social Security Bureau who is responsible for governing the labor-related affairs, there have been no outstanding labor-related complaints registered recently for the company. Findings: The company has established a series of procedures and policies to define its labor management system, which are generally consistent with the requirements of ESS2. Based on document review and interviews, it was confirmed that all workers have signed the labor contract that outlines the salary, leave, and insurance entitlements etc. The overall salary level of direct hires is much higher than the local minimum salary standard, salaries are paid monthly, and overtime work is paid for according to the Labor Law of the PRC, and Labor Contract Law of the PRC, consistent with the applicable domestic regulations and ESS2. There have been no outstanding labor-related complaints registered by local government authority. 18 Figure 2-2 Sample labor contract of Mingzhou Company 2.2.2 Labor protection Forced and child labor: The Chinese Labor Law stipulates that the minimum working age is 16 years (higher than 14 years in ESS2), and special protection is provided to underage workers aged 16-18 years. The WWTP specifies in its worker management policy that no child labor shall be hired. According to on-site interviews, the youngest worker is aged 23 years. The contract workers are mostly cleaners aged 40-50 years. Therefore, the WWTP does not involve child and underage (16-18 years) labor. The WWTP’s Human Resources Measures and labor contracts do not contain any provision on penalty payment for resignation, and workers may apply for resignation during the contract term freely, so they are free from forced labor. According to the review of the job description and human resources management system, its recruitment and job qualification requirements comply with the state laws and contain no restrictive or discriminatory provision. GBV: According to the interview with the company’s HR department, the company complies strictly with the Law of the PRC on the Protection of Women's Rights and Interests and pays particular attention to women’s special needs and vulnerabilities. In addition, Mingzhou Company has established a system against sexual harassment and a smooth internal grievance redress channel, and disclosed it to all staff. Sexual harassment prevention is covered by induction and routine management training. For GBV and sexual harassment, the Ningbo Legal Assistance Center, and Women’s Federation would also provide external supervision and assistance. The social team interviewed 5 female workers randomly, and all of them thought that the company’s relevant systems were sound, and they had never experienced GBV or sexual harassment. 19 Conclusion: The company does not involve child and underage (16-18 years) labor, forced labor, recruitment discrimination, or GBV. 2.2.3 Labor OHS In July-August 2021, the social team conducted a field survey on this subproject, occupational health and workplace conditions, etc., and interviewed the EHS department and staff. • Occupational hazards and protection facilities The existing WWTP treats landfill leachate mainly through the process of conditioning tank— two-stage A/O system—external ultrafiltration system—NF system—RO system—discharge up to the standard. The main working areas with occupational hazards are the conditioning tank, anaerobic tank, nitrification tank, wastewater dewatering room, etc., and occupational hazards include noise, ammonia, hydrogen sulfide, sodium hydroxide, sulfuric acid, ferrous sulfate, etc. For the above areas and occupational hazards, the PIU has set up and operated protection facilities. For toxic gases (ammonia, hydrogen sulfide, etc.), a fully sealed design is used or facilities set up (vent pipes, blowers, fume hoods, etc.) for organized gas discharge to prevent harmful gases from escaping or reducing levels of hazardous substances. Noise is generated by the biogas blowers, pumps, etc. in the leachate treatment station. In the design, a shock absorbing foundation is used, and low-noise blowers and pumps are selected. In addition, workers are required to wear PPE (e.g., face masks, earplugs) when entering the workplace to reduce occupational hazards. • PPE Based on the properties of the potential occupational hazards, the company has provided appropriate PPE to workers, such as gas masks, dust masks and earplugs, etc. Commonly used PPE includes 3M8210CN dust masks, 3M1100 elastic earplugs, etc. The interviewed workers say that anyone who does not wear PPE as stipulated will be regarded to working against the regulations, which will affect performance evaluation. • Occupational health management system and staff The company has established an occupational health management organization at the EHS department, assigned full-time occupational health management staff, and formulated the implementation plan for occupational disease prevention and control, including distributing PPE regularly, conducting occupational hazard monitoring and evaluation, and occupational health checkup, and establishing occupational health monitoring files. • Occupational health management system and operating regulations The company has formulated occupational health management systems, including the standard for PPE distribution, operating regulations for jobs with occupational hazards, comprehensive and special emergency plans, etc. The EHS department offers training on various systems and operating regulations regularly and irregularly, and supervises implementation regularly. • Occupational hazard M&E 20 The company has appointed a qualified agency to conduct workplace occupational hazard M&E, such as Jidi Test Technology Co., Ltd. in December 2020. The evaluation includes the overall layout, equipment layout, occupational hazards and distribution, protection facilities, OHS monitoring and management measures, etc. The company conducts occupational hazard monitoring annually, and an occupational hazard evaluation every three years, with the last one conducted in December 2020. The evaluation report (2020) states, provided that the occupational disease protection facilities operate normally, PPE is worn properly, and all occupational disease management systems are implemented, the company meets the requirements of the Law of the PRC on the Prevention and Control of Occupational Diseases, and other applicable laws and regulations. • Identification and disclosure of occupational hazards The company has established an occupational hazard disclosure system, mainly including disclosure at contract signing, and on-site disclosure, including warning signs, informing cards and bulletin boards, which post texts, pictures and warnings on occupational health, and occupational hazard monitoring results. See Figure 2-3. Figure 2-3 On-site warning signs • Occupational health monitoring The company has established an occupational health monitoring and file management system, and would organize pre-job, on-the-job and separation occupational health checkups, where the checkup items are consistent with the occupational hazards identified. There is no worker suspected of any occupational disease or contraindication. • Occupational health training The company offers pre-job and on-the-job occupational health training in the form of classroom teaching mainly, and trains workers transferred to new jobs or processes by means of classroom teaching, video watching and field education. All training records are included in files. • Emergency rescue plan and drilling 21 The company has established a sound subsequent handling mechanism, and an emergency headquarters, developed general and special emergency plans, and emergency rescue measures, and conducted drills on emergency rescue plans. The company would establish an emergency headquarters when an emergency occurs, which governs 6 emergency teams (production management, rescue, security, logistics, material supply, and public relations coordination teams). No environmental or safety emergency has occurred in the past 3 years. • Infection risks For COVID-19 and other potential infectious diseases, a pandemic prevention and control organization has been established at the municipal and district levels. The company has established an internal pandemic prevention and control system, developed relevant plans, done well in pandemic prevention and control, material reservation, living support, security, etc., assigned persons for temperature taking, ventilation, disinfection, PPE distribution, publicity, education, and relevant information collection and submission, and defined emergency response processes for pandemic prevention and control to reduce infection risks. By the date of this report, no worker had been infected with COVID-19. Findings: The company has realized “three simultaneities” in the construction of occupational disease protection facilities 9 ”. An occupational hazard pre-assessment was conducted during project reasoning, occupational disease protection facilities designed before project construction, and an occupational hazard control effectiveness assessment conducted before the final inspection. The company has established an EHS department to take charge of occupational health affairs, and the occupational health management system. The company’s occupational health management measures, including occupational hazard identification and protective measures, occupational health training and checkup, operating regulations, PPE, emergency plans, etc., have been implemented in accordance with the applicable domestic laws and regulations, which is also consistent with the Bank’s ESF. 2.2.4 Contracted workers The WWTP has two contracted workers (cleaners) from the outsource Beijing Lianchuang Company. Workers dispatched by third parties usually enter into a contract annually. All direct hires and contract workers have signed a labor contract according to the standard of the Ningbo Municipal Human Resources and Social Security, covering contract term, scope of work, workplace, working hours, rest time, remuneration, overtime pay, social insurance and benefits, labor protection and conditions, occupational hazard prevention, financial compensation, etc. The Measures for the Management of Third-Party Dispatched Workers specify labor remuneration, social insurance, overtime pay, and other labor rights. The cleaners work on daytime shifts (8:00-12:00 and 13:00-17:00), for 5 days a week. The cleaners say that they are paid on time every monthly, and seek help through the GRM for labor-related issues. 9Occupational protection facilities for construction projects must be designed, constructed, and put into operation together with the main part. 22 Similar to the labor management of direct hires, the overall salary level of contracted workers is higher than the local minimum salary standard, salaries are paid monthly, and overtime work is paid for according to the Labor Law of the PRC, and Labor Contract Law of the PRC; an appropriate GRM is in place to handle labor issues. Therefore, the management of contracted workers is consistent with the applicable domestic regulations. According to the LMP review, the company’s third-party labor management relies on the prevailing laws and regulations, and its labor management policy does not contain any monitoring requirement. Therefore, the company needs to improve its LMP to strengthen third party labor management. 2.2.5 Worker GRM It is learned from interviews with managers and workers that there has been no grievance since the beginning of operation, and the following grievance channels are available: 1) Grievance channel for contract workers: A worker first reports the issue to the shift leader, who the reports the issue to the team leader of the third-party company, who then reports to the manager of the facility. 2) Grievance channel for direct hires: Workers first report issues to shift leaders, who hold a regular safety meeting at least weekly to identify and discuss such issues and site risks, and then report to the department manager. A labor union chairman’s mailbox, and an anonymous complaint box are provided (see Figure 2-4). Figure 2-4 Labor Union Chairman’s Mailbox and Complaint box The interviewed workers say that they have been told the grievance redress channels in induction and routine training, and know how to file grievances when they encounter problems related to labor contracts, remuneration, working conditions, etc. Any worker may file grievances about labor contracts, remuneration, working conditions, etc. directly to the Ningbo Municipal Labor and Social Security Bureau, which discloses the hotlines of the municipal and district labor security supervision authorities on its official website (http://rsj.ningbo.gov.cn/art/2018/10/9/art_1229130162_49605564.html). 23 2.3 Community health and safety (ESS4) 2.3.1 Impacts of facility operation on community health and safety The leachate treatment station is located in Ningbo resource recycling base. In recent years, the villagers near Ningbo resource recycling base have been relocated successively. For example, Xuanpei Village of Dongqiao Town where the base is located was relocated entirely under the new countryside building subproject of the World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (P123323) implemented in 2015, and there is no resident within 1km around the construction site (Figure 2-5). Figure 2-5 Layout of key social sensitive sites A manager of Mingzhou Company thinks that since the leachate treatment station operates on the site and is far away from settlements. In addition, the Haishu District landfill performs routine monitoring on on-site wastewater, surrounding air and groundwater quality, and discloses monitoring results to nearby communities quarterly. During the preparation of Batch 2 subprojects, the EIA agency conducted groundwater monitoring 10 . The results show that all monitoring sites in the Haishu landfill area reach Class IV in the Quality Standard for Groundwater (GB/T14848-2017). As discussed above, there are other waste disposal facilities in the base, such as the Haishu District waste-to-energy plant and Ningbo food waste disposal plant. Nearby residents say that 10 See the environmental audit report for the Batch 2 subprojects. 24 they can still smell odor in summer or when the atmospheric pressure is low, though such odor is not necessarily from Kaicheng Kitchen Waste Plant. Findings: The environmental monitoring report shows that wastewater and waste gases meet the emission standards. Nearby residents worry that odor produced by the facility may affect their health, though such odor may be from other facilities. Haishu District Urban Administration Bureau and Mingzhou Company should strengthen communication with nearby residents, and disclose relevant information timely. 2.3.2 Community communication mechanism This social audit has found that the Project has no grievance record, and residents may report their grievances directly to the landfill, or to the village committee or town government. All their grievances have received timely feedback. Finding: There is no formal community communication and grievance mechanism. The GRM for residents should be improved, and timely response and feedback given to residents. 2.4 LAR (ESS5) The leachate treatment station has a floor area of 67 mu, and is within Haishu District landfill, involving no additional LA. The land for the landfill was acquired in 2004. See Part 3 for details. 2.5 Issues and suggestions for correction According to this social audit, Table 2-1 summarizes social findings and issues, and gives corresponding suggestions. Table 2-1 Findings and suggestions on WWTP reconstruction and expansion Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible Third-party Improve the LMP to labor contract strengthen the third- Mingzhou Labor 1 ESS2 management is Moderate party labor and Dec. 31, 2022 management unsound. management and Qingyuan monitoring. Environmental Disclose environmental monitoring monitoring results to At least shows that and strengthen semiannually Qingyuan wastewater and communication with (July and Community waste gases nearby residents, and January) health and ESS4 and meet the keep records. 2 safety, Moderate ESS10 emission communication Disclose annual standards. mechanism environmental reports Nearby to nearby communities residents worry Qingyuan January timely, including basic that odor corporate information, produced by environmental 25 the facility may management, affect their pollutants generated, health; management and residents may discharge, etc. express their Establish a formal GRM, concerns and offer sufficient through resources (manpower relevant and finance) to ensure channels, but its proper operation. As per the there is no Qingyuan relevant SEP written record. There are still some gaps from ESS10. 26 3 Part 3: Social Audit Report on Associated Facility 1 of the WWTP - Haishu District landfill The WWTP of Ningbo resource recycling base is located in Haishu District landfill, and will treat leachate from the Haishu District landfill directly. Therefore, Haishu District landfill is defined as an associated facility of the WWTP of Ningbo resource recycling base. Since the Haishu District landfill has been closed down from August 1, 2017, and is managed by the management staff of the leachate treatment station, and the conclusions of the social audit on labor management are not presented here. Therefore, the social audit is focused on: 1) LAR, 2) community health and safety, and 3) information disclosure and grievance redress. 3.1 Introduction to Haishu District landfill Haishu District landfill is located in Yemao’ao Hill in Bailiang Village, Dongqiao Town of Haishu District, with a floor area of 360,000 m2 (about 540 mu), with a design daily capacity of 800 tons, a total storage capacity of 6.47 million m³, and a service life of 20 years. The landfill construction started in May 2005, was put into operation in May 2006, and was accepted in January 2007. By the end of July 2017, the landfill had accommodated and disposed of over 3.5 million tons of domestic waste. From August 1, 2017, the landfill has been closed down temporarily. Figure 3-1 Temporary closure of the landfill 3.2 LAR (ESS5) It is learned from the Dongqiao Town Government and Xuanpei Village Committee that the former Dongqiao landfill in Yinzhou District 11 has been transferred to Haishu District due to an administrative division adjustment, namely Dongqiao landfill is under Haishu District today. LA for the landfill was fully completed in 2005, with 361,400 m2 (about 541.922 mu) of land acquired in total, affecting Xuanpei, Bailiangqiao and Huijiang Villages, Dongqiao Town. Some LA information 11Due to an administrative division adjustment, Dongqiao Town has been transferred from Yinzhou District to Haishu District. 27 has been lost, so this report is based on the information available, and key informant interviews only. The landfill involves LA only, and does not involve HD. LA for the landfill was completed in 2005. In the social audit, the heads of Bailiangqiao, Peixuan and Huijiang Villages, and 15 villagers were interviewed. The interviewees say that they are unclear about LA details, but are sure that all LA compensation has been paid. There is no outstanding LAR issue. 3.2.1 Resettlement impacts and implementation process A total of 541.9 mu of land has been acquired for Haishu District landfill, including 169.7 mu of farmland, accounting for 31.3%; 10 mu of construction land, accounting for 1.9%; and 362.2 mu of other land (woodland), accounting for 66.8%, affecting Bailiangqiao, Xuanpei and Huiiang Villages, Dongqiao Town, Haishu District. See Table 3-1. Since LA compensation is based on land area other than population in China, information on the affected population is unavailable. Table 3-1 Summary of land acquired for the Haishu District landfill LA area (mu) District Town Village Construction Farmland Other land Total land Haishu Dongqiao Bailiangqiao 110.4 0.0 267.0 377.4 Haishu Dongqiao Xuanpei 58.6 6.9 94.7 160.2 Haishu Dongqiao Huijiang 0.7 3.1 0.5 4.4 Total 169.7 10.0 362.2 541.9 Percent 31.3% 1.9% 66.8% 100.0% Source: Dongqiao Town Government In November 2004, Yinzhou District Planning Bureau issued the land planning permit of this project, defining the LA boundary line, and completed the woodland approval procedure (ZLDSZ [2005] No.18). On January 28, 2005, an LA compensation agreement was signed with Dongqiao Town Government, where the Dongqiao Town Government would be responsible for LA and ground attachment compensation. LA had been largely completed by the end of April 2005, and the LA compensation had been fully paid to the affected villages and households. 28 Figure 3-2 LAR contracting agreement for the landfill (2005) In September 2016, Ningbo Municipal Government transferred the acquired land to Yinzhou District Urban Administration Bureau for Yinzhou District landfill (YJTZ (2016) No.79). Figure 3-3 Decision on state-owned land allocation for the landfill (2016) Findings: LA for the landfill was completed in 2005. In 2016, Ningbo Municipal Government approved the allocation of state-owned construction land. Therefore, the land used complies with the applicable laws and regulations of China. 3.2.2 LA compensation rates LA was conducted by the Dongqiao Town Government in accordance with the Measures of Yinzhou District for Land Acquisition Compensation and Resettlement (YDG [2002] No.24). Table 3-2 LA compensation rates for Haishu District landfill Type Compensation rate (yuan/mu) Farmland 35408 Construction land 35408 Other land (woodland) 17704 29 In addition, ground attachments are appraised by a third party, and otherwise compensated for. Conclusion: All village officials and APs are aware of the LA compensation rates, the policy is high transparent, and there has been no grievance. 3.2.3 Compensation The LA compensation for the landfill is 12.776 million yuan, as detailed in Table 3-3. It should be noted that this is the LA compensation only, and excludes compensation for ground attachments. As discussed above, Some LA information has been lost, but according to key informant interviews, all affected assets have been fully compensated for according to the policy. Table 3-3 LA compensation for Haishu District landfill (unit: 0,000 yuan) Town Village Farmland Construction land Other land Total Dongqiao Bailiang 390.9 0 472.6 863.5 Dongqiao Xuanpei 207.4 24.5 167.7 399.5 Dongqiao Huijiang 2.5 11.0 0.9 14.5 Total 600.8 35.6 641.2 1277.6 Source: Dongqiao Town Government, the social team Finding: During the social audit, respondents confirm that all compensation has been paid. 3.2.4 Information disclosure and grievance redress A public hearing was held during LA and compensation, and the LA announcement, compensation and resettlement policy and rates, etc. were posted at the village committees. The respondents think that transparency has been realized. 3.3 Community health and safety 3.3.1 Impacts of facility operation on nearby communities As mentioned above, from August 1, 2017, the landfill has been closed down temporarily. Except leachate treatment, the landfill has almost no disturbance to or impact on nearby communities. In addition, all villages within 1km around the landfill have been relocated. On-site wastewater, air and groundwater quality is monitored routinely, and monitoring results disclosed to nearby communities quarterly. During the preparation of Batch 2 subprojects, the EIA agency conducted groundwater monitoring12. The results show that all monitoring sites in Haishu landfill area reach Class IV in the Quality Standard for Groundwater (GB/T14848-2017). Haishu District landfill is also located in Ningbo resource recycling base. Nearby residents complain that there is still odor, though such odor may be from other facilities (e.g., waste-to- 12 See the environmental audit report for Batch 2 subprojects. 30 energy plant). The landfill should strengthen communication with nearby residents, and disclose relevant information timely. 3.3.2 Community communication mechanism This social audit has found that the Project has no grievance record, and residents may report their grievances directly to the landfill, or to the village committee or town government. All their grievances (mostly about odor) have received timely feedback. Finding: There is no formal community communication and grievance mechanism. The GRM for residents should be improved, and timely response and feedback given to residents. 3.4 Issues and suggestions for correction According to the social audit, Table 3-4 summarizes social findings and issues, and gives corresponding suggestions. Table 3-4 Findings and suggestions on Haishu District landfill Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible Disclose environmental At least There is no monitoring results to nearby semiannually resident within residents timely, strengthen Qingyuan (July and 1km around communication with them, and January) the keep records properly. construction Disclose annual environmental site. However, Community reports to nearby communities nearby health and timely, including basic ESS4 and residents say 1 safety, Moderate corporate information, ESS10 that they can Qingyuan January communication environmental management, still smell odor mechanism pollutants generated, sometimes, management and discharge, and have not etc. seen environmental Establish a formal GRM, and monitoring offer sufficient resources As per the Qingyuan reports timely. (manpower and finance) to SEP ensure its proper operation. 31 4 Part 4: Social Audit Report on Associated Facility 2 of the WWTP - Kaicheng Kitchen Waste Plant Kaicheng Kitchen Waste Plant is located in Ningbo resource recycling base, and is constructed and operated in the PPP mode for a period of 20 years (including the construction period). The investor is Kaicheng Company. Based on the fieldwork and screening results, the social audit is focused on the following social aspects: 1) labor and working conditions, 2) community health and safety, 3) LAR, and 4) public participation and grievance redress. In particular, public participation and grievance redress are overlapping issues that run through the whole project lifecycle. 4.1 Introduction to Kaicheng Kitchen Waste Plant Kaicheng Kitchen Waste Plant has a floor area of 50 mu, and a design capacity of 600 t/d, and is constructed in two stages. The Phase 1 plant was completed and put into operation in June 2018, and Phase 2 is under construction, and is expected to be completed by the end of 2021. The plant’s kitchen wastewater includes rinse wastewater and biogas fluid separation wastewater. After the completion of Phase 2, 720m³ /d of wastewater will be generated. According to the centralized treatment requirement of Ningbo resource recycling base wastewater, the plant’s wastewater (about 720m³ /d) will be transported to the WWTP of Ningbo resource recycling base for centralized treatment. Therefore, Kaicheng Kitchen Waste Plant (Phase 2) is defined as an associated facility. 4.2 Labor and working conditions (ESS2) Ningbo Kaicheng Kitchen Waste Disposal Co., Ltd. (Kaicheng Company) has a general manager’s office, a safety, environment and health department, a production operation department, and a general management department, and a workforce of 50, including 1, 2, 31 and 16 in the above departments respectively. The company has no contract worker, and its primary suppliers’ workers are about 50 drivers of kitchen waste transfer vehicles. The social audit reviews Kaicheng Company’s current employment terms and conditions, forced and child labor, OHS and worker GRM. Kaicheng Kitchen Waste Plant has direct hires and primary suppliers’ workers only, and no contract and community workers. 4.2.1 Employment terms and conditions During this social audit, the following rules and regulations on worker management of Kaicheng Company were checked: • Personnel Management Measures; • Notice on Regulating the Recruitment Process • Training Management System; • Measures for Evaluation Management during Internship and Probation; • Measures for Temporary Worker Management; 32 • Regulations on Payment of Duty Subsidies; • Measures for the Management of Paid Annual Leaves of Workers; • Intern Management System; • Sample labor contract for direct hires. Kaicheng Company adopts a comprehensive labor management system, providing clear written guide to worker management. Each employee is required to enter a labor contract (see Figure 4-1), specifying the term, scope of work, workplace, working hours, rest time, remuneration, overtime pay, social insurance and benefits, labor conditions, contract change, termination and renewal, labor dispute settlement, etc. The company offers induction training to new hires to help them get familiar with the corporate policies and their jobs. Figure 4-1 Sample labor contract of Kaicheng Company Except all staff of the general manager’s office, safety, environment and health department, general management department, and maintenance department, and inspectors of the production operation department, and inspectors of the production operation department, who work 8 hours a day, the other divisions of the production operation department work 12 hours a day and 5 days a week. The central control room operates around the clock, and the operators rest in rotation and actually work 5 days a week. Based on interviews with direct hires of Kaicheng Company, all of them have entered a labor contract, are paid regularly, have covered social insurance and one fund (endowment, medical, unemployment, work-related injury and maternity insurance, and housing provident fund), rest on legal holidays, and are entitled to overtime pay and other basis benefits as stipulated by law. The company conducts a health checkup for all employees annually. After checking with the Haishu District Human Resources and Social Security Bureau who is responsible for governing the labor-related affairs, there have been no labor-related complaints registered recently for the company. Findings: Kaicheng Company has established a series of procedures and policies to define its labor management system, which are generally consistent with the requirements of ESS2. Based on document review and interviews, it was confirmed that all workers have signed the labor contract that outlines the salary, leave, and insurance entitlements, etc. The overall salary level of 33 direct hires is much higher than the local minimum salary standard, salaries are paid monthly, and overtime work is paid for, consistent with the applicable domestic regulations and ESS2. There have been no labor-related complaints registered by local government authority. 4.2.2 Labor protection The Labor Law of China stipulates that the minimum working age is 16 years (higher than 14 years in ESS2), and special protection is provided to underage workers aged 16-18 years. Kaicheng Company specifies in its worker management policy that no child labor shall be hired. The workers are aged 30-50 years, with a minimum age of 24 years. Therefore, Kaicheng Company does not involve child and underage (16-18 years) labor. Kaicheng Company’s HR Measures and labor contracts do not contain any provision on penalty payment for resignation. During recruitment, the company notifies the scope and place of work, working hours, potential overtime work, benefits, etc. to applicants, and includes them in the employment contract. According to worker interviews, workers may apply for resignation during the contract term freely, so they are free from forced labor. Finding: Kaicheng Company does not involve child and underage (16-18 years) labor, or forced labor. 4.2.3 Labor OHS and protective facilities In July-August 2021, the social team conducted a field survey on this subproject, occupational health and workplace conditions, etc., and interviewed the EHS department and staff. • Occupational hazards and protection facilities The production units involving OHS at Kaicheng Kitchen Waste Plant include kitchen waste pretreatment system, anaerobic fermentation system, biogas purification system, biogas residue dewatering system, illegal cooking oil pretreatment system, and auxiliary production units (including deodorization and purification system, boiler room, pump station, etc.). Based on the existing production processes and equipment, the main occupational hazards are dust (polyacrylamide), sodium carbonate, hydrogen sulfide, ammonia, methane, methylmercaptan, dimethyl sulfide, carbon monoxide, ozone, welding fume, noise, welding arc, etc. In addition, in special production processes (e.g., confined space work, repair), operating regulations for confined space work, and pre-repair preparation should be implemented to reduce the concentration of occupational hazards. For the above areas and occupational hazards, the PIU has set up and operated protection facilities, including setting up facilities against dust, poisons, noise, vibration and heat, such as automatic dispensers, to reduce workers’ exposure to dust, using advanced and reliable fully automatic control technologies to reduce workers’ exposure to harmful substances, and using sealed equipment and pipelines to avoid the diffusion of harmful gases, selecting low-noise equipment and using shock pads to reduce noise, and taking heat insulation measures for boilers, pre-heaters, high-temperature pipelines, etc. 34 Figure 4-2 Deodorization equipment of Kaicheng Kitchen Waste Plant Figure 4-3 Acoustic Hood • PPE Based on the properties of the potential occupational hazards, the company has formulated the Regulations on the Management of Labor Protection Articles, and the PPE record reform. PPE includes earplugs (3M1110), filtering gas masks (3M6000), cartridges (6006CN), dust masks (3M8514), protective gloves, safety glasses, antistatic work clothes, etc. • Occupational health management system and staff The company has established an occupational health management organization at the EHS department, assigned one occupational health manager, and formulated the implementation plan for occupational disease prevention and control, including distributing PPE regularly, conducting occupational hazard monitoring and evaluation, and occupational health checkup, and establishing occupational health monitoring files. 35 • Occupational health management system and operating regulations The company has formulated occupational health management systems, including the management system for occupational disease protection articles, operating regulations for occupational health, occupational hazard disposal and reporting system, and management system for occupational health monitoring and file management, etc. The EHS department offers training on various systems and operating regulations regularly and irregularly, and supervises implementation regularly. • Occupational hazard monitoring The company has appointed a qualified agency to conduct workplace occupational hazard monitoring annually, such as Anlian Test Technology Service Co., Ltd. in 2021, which issued a report (ZJ21070511). The main test items include other dust (polyacrylamide), welding smoke, manganese and inorganic compounds (as MnO2), NOx (NO and NO2), ozone, ammonia, methanethiol, hydrogen sulfide, sulfuric acid, sulfur trioxide, sodium hydroxide, sodium carbonate (soda ash), welding arc, carbon monoxide, carbon dioxide, high temperatures, noise, etc. According to the report, except few areas where PPE is not provided and used properly (e.g., electric welding, earplugs), all 16 working areas with chemical hazards and 15 ones with physical hazards meet the requirements for occupational exposure restriction. The report advises the company to strengthen PPE supply, distribution and use, and require all workers to wear PPE properly before going to work. • Identification and disclosure of occupational hazards The company has established an occupational hazard warning and disclosure system, mainly including pre-job disclosure, on-site disclosure, and inspection result disclosure. When entering into a labor contract with a worker, the company would disclose potential occupational hazards and their consequences, protective measures, and remuneration, and specify these in the contract; in case of a job or duty change, the worker will be otherwise informed of occupational hazards. Bulletin boards are set up at workshops to disclose regulations on occupational disease prevention and control, operating regulations, emergency rescue measures, monitoring and evaluation results. In addition, the company will notify workers of occupational health checkup results timely. • Occupational health monitoring The company has established an occupational health monitoring and file management system, and would organize pre-job, on-the-job and separation occupational health checkups. Based on checkup records during 2018-2020, the checkup items were consistent with the occupational hazards identified, and there was no worker suspected of any occupational disease or contraindication. • Special operation management and practice The company has developed management systems for special operators and special equipment safety. Special equipment must be operated by an operator with a valid certificate, and relevant staff must attend training and evaluations on time. Special operators may refuse to operate without secure protection. • Occupational health training 36 The company offers pre-job and on-the-job occupational health training in the form of classroom teaching mainly, and trains workers transferred to new jobs or processes by means of classroom teaching, video watching and field education. All training records are included in files. Occupational health is offered in every May. • Emergency rescue plan and drilling The company has established an emergency rescue and management system for occupational hazards, including organizational arrangements and responsibilities, emergency management, key targets and hazards, working requirements, etc. In addition, the company has prepared an emergency plan for confined space accidents, and special emergency rescue plans for chemical poisoning, such as hydrogen sulfide. The company would organize an emergency plan drill for occupational hazards in every June and November. In addition, the company has developed an occupational hazard handling and reporting system, specifying that any department or individual should report any potential occupational hazard timely, and keep away from the workplace until the hazard is removed. Figure 4-4 Fire-fighting Devices in the Plant Figure 4-5 Emergency drills • Infection risks For COVID-19 and other potential infectious diseases, a pandemic prevention and control organization has been established at the municipal and district levels. The company has established an internal pandemic prevention and control system, developed relevant plans, done well in pandemic prevention and control, material reservation, living support, security, etc., assigned persons for temperature taking, ventilation, disinfection, PPE distribution, publicity, 37 education, and relevant information collection and submission, and defined emergency response processes for pandemic prevention and control to reduce infection risks. Findings: The company has a deep understanding of factors affecting worker health. An occupational health administrator is responsible for occupational disease prevention and control. The company has realized “three simultaneities” in the construction of occupational disease protection facilities 13 ”. An occupational hazard pre-assessment was conducted during project reasoning, occupational disease protection facilities designed before project construction, and an occupational hazard control effectiveness assessment conducted before the final inspection. The company conducts occupational health checkup and workplace occupational hazard monitoring every year at the operation stage, and has established occupational health management systems and files. The company’s occupational health management complies with the applicable domestic laws and regulations, and is also consistent with the Bank’s ESF. 4.2.4 Primary suppliers’ workers Primary suppliers’ workers are about 50 drivers of kitchen waste collection vehicles, who belong to district environmental sanitation offices. In China, only adults (18 years or above) can apply for a driving license. Therefore, there is no child or underage worker in Kaicheng Company’s primary suppliers’ workers. These drivers are work voluntarily, and may apply for resignation freely, so there is no forced labor. These drivers are exposed to traffic safety risks mainly. The company has no direct control over them out of the project site, but has imposed some restrictions on their driving behavior on the project site, such as a speed limit (5km/h). Findings: According to field observation, the vehicles of the primary supplier still drive fast on the site, so the company should strengthen the control and supervision of driving behavior on the site. The company should strengthen traffic safety management in coordination with the district sanitation offices, including vehicle safety, safe driving education, waste transfer routes and times, etc. 4.2.5 Worker GRM It is learned from interviews with managers and workers that there has been no grievance since the beginning of operation, and the following grievance channels are available: 1) Workers may report their grievances directly to the shift leader, who report issues that cannot be handled within the shift to the corporate manager. 2) A reporting hotline and an anonymous complaint box are provided at the canteen, and the person responsible would check the box and handle complaints received centrally every day (see Figure 4-5). 13Occupational protection facilities for construction projects must be designed, constructed, and put into operation together with the main part. 38 Figure 4-6 Labor Union Chairman’s Mailbox and Complaint box The interviewed workers say that they have been told the grievance redress channels in induction and routine training, and know how to file grievances when they encounter problems related to labor contracts, remuneration, and working conditions, etc. Any worker may file grievances about labor contracts, remuneration, and working conditions, etc. directly to Ningbo Municipal Labor and Social Security Bureau, which discloses the hotlines of the municipal and district labor security supervision authorities on its official website (http://rsj.ningbo.gov.cn/art/2018/10/9/art_1229130162_49605564.html). 4.3 Community health and safety (ESS4) Communities involved in this subproject mainly include communities around the facility and those passed through by vehicles. The social audit covers: 1) facility impacts on nearby communities, 2) environmental disturbances to communities passed through by vehicles, and 3) road traffic safety risks, etc. 4.3.1 Impacts of vehicles on community health and safety In Ningbo, kitchen waste is collected by Kaicheng Kitchen Waste Plant (about 32 tankers) and district environmental sanitation offices (about 50 tankers) directly from restaurants at noon and in the evening. All vehicles are provided with a GPS, and have a fixed transfer route via Provincial Highway 214—airport elevated road—road for solid waste disposal, avoiding communities, schools, villages, hospitals and other social sensitive sites where possible to reduce traffic risks. 4.3.2 Community disturbances by vehicles The company has taken the following measures to avoid community environment pollution during waste transfer: • Sound measures are taken for driver and vehicle management to reduce traffic accidents. • The municipal urban administration bureau urges all districts to correct illegal vehicles, with focus on vehicle appearance, condition, marking and sealing to reduce waste spills and secondary pollution. • Vehicles are sealed to avoid spills, and cleaned regularly to keep them clean. 39 • Vehicles entering the plant should be clean, sealed and free from spills, and cleaned after unloading. Findings: Strict management measures for waste collection and transfer have been formulated, and vehicles are fully sealed during transfer, and run through a fixed route to minimize community disturbances. 4.3.3 Impacts of plant operation on community health and safety Kaicheng Kitchen Waste Plant is located in Ningbo resource recycling base. In recent years, the villagers near Ningbo resource recycling base have been relocated successively. For example, Xuanpei Village of Dongqiao Town where the base is located was relocated entirely under the new countryside building subproject of the World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (P123323) implemented during 2012-2020, and there is no resident within 1km around the construction site (Figure 2-5). As discussed above, there are other waste disposal facilities in the base, such as the Haishu District waste-to-energy plant and Ningbo food waste disposal plant. Nearby residents say that they can still smell odor in summer or when the atmospheric pressure is low, though such odor is not necessarily from Kaicheng Kitchen Waste Plant. In March 2019, Kaicheng Company appointed Pony Testing International Group Co., Ltd. to perform final environmental inspection on Phase 1. According to the inspection results, and the routine monitoring results from May 2019 to June 2020, the waste gas, wastewater and noise emission standards were all met14. However, the relevant environmental monitoring reports are not provided to nearby residents timely. Findings: Kaicheng Company has taken a series of measures to reduce impacts of facility operation on nearby communities, but nearby residents say that they can still smell odor in summer or when the atmospheric pressure is low. Kaicheng Company should strengthen communication with nearby communities, information disclosure, and internal management to reduce waste gas and wastewater emissions. 4.4 LAR (ESS5) Kaicheng Kitchen Waste Plant has a floor area of 33,350 m2 (50 mu). In August 2015, Ningbo Municipal Government allocated the land to the municipal environmental sanitation office to construct the Ningbo kitchen waste disposal plant (YJTZ [2015] No.145). Conclusion: The land used for Kaicheng Kitchen Waste Plant complies with the applicable laws and regulations of China, and the right to use state-owned land has been transferred. 14 See Section 4.3.2 of the EIA report for the Batch 2 subprojects. 40 Figure 4-7 Decision on land allocation for Kaicheng Kitchen Waste Plant 4.4.1 Resettlement impacts and implementation process Kaicheng Kitchen Waste Plant is located at Ningbo solid waste disposal center15, which is a subproject of the World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (P123323) implemented during 2012-2020. 1) LA Ningbo solid waste disposal center is located in Xuanpei Village, Yinzhou District. In December 2014, Zhejiang Provincial Government approved the application of Yinzhou District Government for the 30th batch of construction land in 2014 with the approval opinion on construction land (No.: ZTZ (2014)-0266), including 289.197 mu of construction land for Ningbo solid waste disposal center in Xuanpei Village. See Figure 2-8. Figure 4-8 Approval opinion on construction land of Zhejiang Province (No.: ZTZ (2014)-0266) 15 It is now an integral part of the Ningbo resource recycling base. 41 A total of 192,800 m2 (289.197 mu) of collective land has been acquired for Ningbo solid waste disposal center, affecting 74 households with 210 persons in Xuanpei Village, Dongqiao Town. In February 2015, Yinzhou District Tongyi Land Acquisition Firm entered into an LA compensation agreement with Xuanpei Village, and the LA compensation was disbursed by Yinzhou District Tongyi Land Acquisition Firm to Xuanpei Village collective. All AHs have entered into LA compensation agreements. Through consultation at a village congress, 60% of the land compensation and resettlement subsidy is withheld by the collective, and the remaining 40% and the young crop compensation is fully paid to the AHs. 2) HD Rural houses of 31,072.66 m2 in Xuanpei Village, Dongqiao Town have been demolished for Ningbo solid waste disposal center, affecting 151 households with 340 persons, including 20,390.51 m2 (65.62%) in masonry concrete structure, 7,830.37 m2 (25.20%) in masonry timber structure, and 2,851.78 m2 (9.18%) in earth timber structure. HD has been completed. Among the 151 AHs, 104 choose monetary compensation, and have received the compensation in full; 47 choose property swap at Dongxuan Garden. 4.4.2 LA compensation policies and rates 1) Compensation rates for LA For paddy rice and other crops on the cultivated land acquired, the compensation rate of Ningbo City is 800-1000 yuan/mu, and that under the Project is 1,000 yuan/mu. According to the Notice of Yinzhou District Government on Adjusting Block Comprehensive Land Prices for Land Acquisition (YDG [2014] No.75), Xuanpei Village, Dongqiao Town affected by LA is a Tier 2 area, where the compensation rate is 80,000 yuan/mu. See Table 2-8. Table 4-1 Block comprehensive land prices of Yinzhou District Young crop Compensation rate for cultivated Compensation rate for Village Tier compensation rate and garden land (yuan/mu) unused land (yuan/mu) involved (yuan/mu) 2 80000 10000 1000 Xuanpei 2) Compensation rates for rural HD HD compensation rates for Ningbo solid waste disposal center are fixed based on the Implementation Plan for the Demolition of Houses on Collectively Owned Land for Ningbo Solid Waste Disposal Center, including house compensation, moving subsidy, transition subsidy, reward, etc. See Table 4-2. Table 4-2 HD compensation rates Type Compensation rate (yuan/m2) Remarks Average price of commercial housing of the same class minus House compensation 3720 basic cost, where the basic cost is 730 yuan/m2 42 Type Compensation rate (yuan/m2) Remarks Moving 1,000 yuan per household subsidy Other compensation ⚫ 6 yuan/m2 of building area, not less Transition than 500 yuan per household subsidy ⚫ 8 yuan/m2 per month for self- transition The house emptying period is 60 days (first 20 days being the agreement signing House period). emptying ⚫ 15,000 yuan if the house is emptied and Reward within the first 30 days agreement ⚫ 10,000 yuan if the house is emptied signing within the first 31-40 days reward ⚫ 5,000 yuan if the house is emptied within the first 41-50 days 3) HD resettlement According to Article 23 of the Regulations of Ningbo on the Demolition of Houses on Collectively Owned Land, the resettlement size of a demolished house is the building area specified in the certificate of the right to use collective construction land or house ownership certificate provided by the AH, usually not more than 250 m2 of building area per household. Any AH that is eligible for housing land application but has not obtained housing land, or the building area of whose completed house is less than the resettlement size to which it is entitled, the resettlement size will be fixed at not less than 30 m2 of building area per capita (hereinafter, the “minimum resettlement size”). In case of property swap, the following provisions apply: a) The price difference will be settled between the resettlement house at basic cost and the demolished house at replacement cost. b) For part of the building area of the demolished house in excess of the resettlement size, compensation will be not more than 3 times the replacement cost; if the minimum resettlement size applies, the building area of the demolished house is the minimum resettlement size. c) For the part of the actual building area of the resettlement house less than the resettlement size, the average price of commercial housing of the same class minus basic cost applies. d) For the part of the actual building area of the resettlement house in excess of the resettlement size, the average price of commercial housing of the same class applies. 4.4.3 HD resettlement HD for Ningbo solid waste disposal center affects 151 households with 340 persons in Pei’ao Village, Dongqiao Town, Yinzhou District. HD has been completed. Among the 151 AHs, 104 choose 43 monetary compensation, and have received the compensation in full; 47 choose property swap at Dongxuan Garden. The social team has found that all AHs have been resettled properly by June 2020. A resettlement ICR had been conducted in July 2020 by Hohai University that was entrusted by Ningbo PMO, and it was concluded that the land acquisition and house relocation had been fully completed in compliance with resettlement action plan approved by the WB. Furthermore, the implementation completion and results report16 of the WB also confirmed that all resettlement activities have been completed in full without outstanding issues or complaints. Figure 4-9 Dongxuan Garden (Resettlement Community) Conclusion: The resettlement and compensation policies comply with the principles and requirements in ESS5, the fund disbursement procedure is transparent and efficient, and the compensation has been paid to the AHs timely and fully. The resettlement program had been well implemented by June 2020 and the ICR deemed the resettlement performance is satisfactory. 4.4.4 Information disclosure and grievance redress 1) Information disclosure and public participation LAR for Ningbo solid waste disposal center has been implemented in accordance with the Bank’s OP4.12 on involuntary resettlement, and China’s laws and regulations. During RAP preparation and implementation, extensive information disclosure and public participation was conducted. During resettlement implementation, external M&E was conducted, and 9 external M&E reports submitted (including the completion report). See Table 4-3. Table 4-3 Information disclosure and public participation on LAR Purpose Mode Time Agencies Participants Topic Ningbo PMO, RAP or RIB Distributed to After Bank RAP or RIB township All APs APs review governments 16 China - Ningbo Municipal Solid Waste Minimization and Recycling Project (worldbank.org) 44 Purpose Mode Time Agencies Participants Topic Village bulletin Ningbo PMO, Disclosing the LA area, LA Dec. 2015 – board and village township All APs compensation rates and announcement Jan. 2016 meeting governments resettlement modes Disclosure of LA Compensation and mode of Village bulletin Ningbo PMO, compensation Dec. 2015 – payment board and village township All APs and resettlement Jan. 2016 meeting governments program Preparation and Discussing the final income implementation Ningbo PMO, restoration program, and Village meetings Dec. 2015 – of income township All APs how to use compensation (many times) Jan. 2016 restoration governments program Resettlement AHs under the 47 AHs are subject to Door-to-door Dongqiao Town program 2017 solid waste property swap instead of survey, FGDs Government adjustment disposal center monetary compensation. Resettlement progress, Interview, FGD, compensation payment, Feb. 2014 – External M&E External M&E questionnaire PMO, PIU, APs information disclosure, Jun. 2020 agency survey grievance redress, livelihood restoration, etc. APs were organized to visit Resettlement APs of the solid 2018 and Dongqiao Town resettlement house house visit by Field visit waste disposal 2019 Government construction progress APs center twice on site. Source: social team 2) Grievance redress To ensure fairness and openness, and conduct LAR orderly, a sound GRM has been established during resettlement implementation. It has 3 channels – administrative agencies (village committees, township governments, etc.), grievance hotline and online. All agencies will accept agencies from the APs for free, and expenses reasonably incurred will be disbursed from contingencies. The village committees and township government will keep records properly. In addition, if any AP is dissatisfied with the disposition, he/she may resort to judicial proceedings. Conclusion: Public participation activities have been conducted in a diversified manner during LAR. All respondents say that the LAR process is open and transparent, they are aware of the GRM, and there is no outstanding issue. 4.4.5 Resettlement satisfaction survey During the social audit, the social team also learned satisfaction with resettlement from 40 sample households in Xuanpei Village to learn the socioeconomic effects of compensation and resettlement from the APs’ personal experiences. See Table 4-4. 45 During LAR, 57.31% of the respondents are aware of LA at a village meeting or by informal means, show that information disclosure is effective. Most of the respondents are satisfied with DMS results. 63.42% are aware of LA compensation policies, 49.54% are satisfied with these policies, and 51.88% are satisfied with their implementation. During LAR, the APs express their appeals to the owner directly. 20.34% of the respondents are very satisfied with their current lives, 68.92% satisfied, and 10.74% neither satisfied nor dissatisfied. In addition, during LAR, all respondents think that their lawful rights and interests are not infringed on. Findings: 89% of the respondents are satisfied or largely satisfied with the Project in general. Few respondents have expressed different opinions about LAR, but say that there is no outstanding issue. The overall satisfaction with resettlement is high, consistent with the conclusions of other methods, such as key informant interview and FGD. Table 4-4 Resettlement satisfaction survey form Results No. Question Options ① ② ③ ④ ⑤ By what means did 1) Government leaflet; 2) mass media; 3) 1 not first know about neighborhood discussion; 4) village 14.63% 17.25% 10.81% 57.31% 0 the Project? meeting; 5) measurement Are you satisfied 1) Very satisfied; 2) Satisfied; 3) Neither, 2 30.60% 55.05% 14.35% 0 0 with DMS results? nor; 4) Dissatisfied; 5) Very satisfied Are you aware of LA 1) Yes; 2) Somewhat; 3) No 3 compensation 63.42% 36.58% 0 / / policies Are you satisfied 1) Very satisfied; 2) Satisfied; 3) Neither, 4 24.74% 25.72% 49.54% 0 0 with these policies? nor; 4) Dissatisfied; 5) Very satisfied Are you satisfied 1) Very satisfied; 2) Satisfied; 3) Neither, with the nor; 4) Dissatisfied; 5) Very satisfied 5 44.12% 55.88% 0.00% 0 0 implementation of these policies? By what means do 1) None; 2) village official directly; 3) 6 you express your village official indirectly; 4) mass media; 0 50.21% 24.78% 25.01% 0.00% opinions? 5) owner Are you satisfied 1) Very satisfied; 2) Satisfied; 3) Neither, 7 with your current nor; 4) Dissatisfied; 5) Very satisfied 20.34% 68.92% 10.74% 0 0 life? Source: fieldwork 4.5 Issues and suggestions for correction According to the social audit, Table 4-5 summarizes social findings and issues, and gives corresponding suggestions. Table 4-5 Findings and Suggestions on Kaicheng Kitchen Waste Plant 46 Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible There is no Disclose annual resident within environmental reports 1km around to nearby communities At least the timely, including basic semiannually construction corporate information, Kaicheng (July and site. However, environmental January) nearby management, pollutants residents say generated, management Community that they can and discharge, etc. health and ESS4 and still smell odor 1 safety, Moderate Establish a formal GRM, ESS10 sometimes, communication and offer sufficient and have not mechanism resources (manpower Kaicheng January seen and finance) to ensure environmental its proper operation. monitoring reports timely. Establish a formal GRM, and offer sufficient Operation resources (manpower Kaicheng stage and finance) to ensure its proper operation. Drivers may Improve the LMP to fail to observe strengthen the the operating management of primary regulations suppliers’ workers Kaicheng July 2022 (e.g., over- (drivers mainly), speed). especially work safety 2 ESS2 OHS Moderate and driving. Strengthen traffic safety Kaicheng training for drivers, and district At least including traffic rules, sanitation quarterly speed and route offices requirements, etc. 47 5 Part 5: Social Audit Report on Associated Facility 3 of the WWTP—Shouchuang Kitchen Waste Plant Ningbo Shouchuang Kitchen Waste Disposal Co., Ltd. (Shouchuang Company) is a joint venture specializing in kitchen waste disposal between Shouchuang Environmental Investment Holding Co., Ltd. and Ningbo Municipal Public Utilities Investment Co., Ltd. (NMII), located in Xuanpei Village, Dongqiao Town of Haishu District, incorporated in August 2016. Based on the fieldwork and screening results, this social audit is focused on the following social aspects: 1) labor and working conditions, 2) community health and safety, 3) LAR, and 4) public participation and grievance redress. In particular, public participation and grievance redress are overlapping issues that run through the whole project lifecycle. 5.1 Introduction to Shouchuang Kitchen Waste Plant Shouchuang Kitchen Waste Plant has a floor area of 115 mu, and is located in Ningbo resource recycling base, with a planned capacity of 800t/d. It is constructed in two phases, in which Phase 1 (400t/d) has been completed and put into operation. This plant receives kitchen waste from the urban center for disposal by dry anaerobic fermentation, and biogas generated is refined to produce natural gas, and biogas residue is used for composting. After expansion, it will generate 800m³ /d of wastewater, which will be sent to the WWTP of Ningbo resource recycling base for centralized treatment. Therefore, Shouchuang Kitchen Waste Plant is defined as an associated facility. 5.2 Labor and working conditions (ESS2) Shouchuang Company has a management, a general affairs department, a production operation department, a maintenance department, and a safety and environment department, and a workforce of 53, including 5, 32, 5, 3, 5 and 2 in the above departments respectively. The company has no contract worker, and about 40 primary suppliers’ workers, who are kitchen waste vehicle drivers from district urban administration bureaus. This social audit reviews Shouchuang Company’s current employment terms and conditions, forced and child labor, OHS and worker GRM. 5.2.1 Employment terms and conditions During this social audit, the following rules and regulations on worker management of Shouchuang Company were checked: • Personnel Management Measures; • Notice on Regulating the Recruitment Process; • Training Management System; • Measures for Evaluation Management during Internship and Probation; • Measures for Temporary Worker Management; • Regulations on Payment of Duty Subsidies; • Measures for the Management of Paid Annual Leaves of Workers; 48 • Intern Management System; The company’s operating hours are 4:00 to 20:00. The workers work on a rotation basis. The central control room workers, and biogas purification and utilization system operators of the production operation department work on 4 shifts, the other workers work on 3 shifts, and managers and technicians work on the day shift (9:00-18:00, 5 days a week). Based on interviews with direct hires of Shouchuang Company, all of them have entered a labor contract, are paid regularly, have covered social insurance and one fund (endowment, medical, unemployment, work-related injury and maternity insurance, and housing provident fund), rest on legal holidays, and are entitled to overtime pay and other basis benefits as stipulated by law. The company conducts a health checkup for all employees annually. After checking with the Haishu District Human Resources and Social Security Bureau who is responsible for governing the labor-related affairs, there have been no outstanding labor-related complaints registered recently for the company. Findings: Shouchuang Company has established a series of procedures and policies to define its labor management system, which are generally consistent with the requirements of ESS2. Based on document review and interviews, it was confirmed that all workers have signed the labor contract that outlines the salary, leave, and insurance entitlements, etc. The overall salary level of direct hires is much higher than the local minimum salary standard, salaries are paid monthly, and overtime work is paid for, consistent with the applicable domestic regulations and ESS2. There have been no outstanding labor-related complaints registered by local government authority. 5.2.2 Labor protection The Labor Law of China stipulates that the minimum working age is 16 years (higher than 14 years in ESS2), and special protection is provided to underage workers aged 16-18 years. The youngest worker of Shouchuang Company is 23 years, and its workers are mostly 30-45 years. During recruitment, the company notifies the scope and place of work, working hours, potential overtime work, benefits, etc. to applicants, and includes them in the employment contract. Shouchuang Company’s Personnel Management Measures and labor contracts do not contain any provision on penalty payment for resignation, and workers may apply for resignation during the contract term freely, so they are free from forced labor. According to the review of the job description and human resources management system, its recruitment and job qualification requirements comply with the state laws, and contain no restrictive or discriminatory provision, so it can be regarded that there is no recruitment discrimination in project implementation. China has strict Special Rules on Labor Protection of Female Employees, which require that employers should prevent and prohibit sexual harassment against female workers, and protect their privacy when handling their sexual harassment grievances. In Ningbo, GBV rarely happens, so the Project’s GBV risks are negligible. Conclusion: Shouchuang Company does not involve child and underage (16-18 years) labor, forced labor, recruitment discrimination, or GBV. 49 5.2.3 Labor OHS In July-August 2021, the social team conducted a field survey on this subproject, occupational health and workplace conditions, etc., and interviewed the EHS department and staff. • Occupational hazards and protection facilities The treatment processes include the kitchen waste pretreatment system, anaerobic fermentation system, biogas purification and utilization system, biogas residue composting system, deodorization system, and wastewater treatment system: 1) Kitchen waste pretreatment system: kitchen waste collection and transfer → sorting → crushing; 2) Kitchen waste treatment (anaerobic fermentation) system: sorting → anaerobic fermentation 3) Biogas purification and utilization system: biogas filtration → biogas desulfurization → biogas compression 4) Biogas residue composting system: biogas residue transfer → mixing → aerobic fermentation → post-treatment; 5) Deodorization system: odor collection →biological filter → chemical washing 6) Wastewater treatment system: pretreatment → external biological film treatment → advanced oxidation Based on the existing production processes and equipment, the main occupational hazards are carbon dioxide, carbon monoxide, ammonia, hydrogen sulfide, sodium carbonate, noise, etc. In addition, there are special operations at the operation stage, mainly including confined space work (oxygen depletion, ammonia poisoning, etc. in the treatment tank), repair (potential exposure to toxic gases in pipelines), and emergency rescue (potential exposure to leaking biogas). For the above areas and occupational hazards, the PIU has set up and operated protection facilities, including setting up facilities against dust, poisons, noise, vibration and heat, such as automatic dispensers, to reduce workers’ exposure to dust, using advanced and reliable fully automatic control technologies to reduce workers’ exposure to harmful substances, and using sealed equipment and pipelines to avoid the diffusion of harmful gases, selecting low-noise equipment and using shock pads to reduce noise, and taking heat insulation measures for boilers, pre-heaters, high-temperature pipelines, etc. The company’s dust, poison and noise proofing facilities operate normally, reducing health impacts of occupational hazards on workers during production effectively. • PPE Based on the properties of the potential occupational hazards, the company has formulated the Regulations on the Management of Labor Protection Articles, and the PPE record reform. PPE includes earplugs (3M1110), Honeywell full face masks (with 75SCL cartridge), dust masks (3M9542V), etc. This social audit covers PPE supply, use and management, and shows that the company has distributed different PPE for different jobs in accordance with the applicable domestic regulations. 50 Workers can largely properly wear gas masks, dust masks, earplugs, protective gloves and other PPE. • Occupational health management system and staff The company has established an occupational health management organization at the EHS department, assigned two occupational health managers, and formulated the implementation plan for occupational disease prevention and control, including distributing PPE regularly, conducting occupational hazard monitoring and evaluation, and occupational health checkup, and establishing occupational health monitoring files. • Occupational health management system and operating regulations The company has formulated occupational health management systems, including the management system for occupational disease protection articles, procedure for workplace occupational hazard monitoring and evaluation, occupational health management procedure, occupational disease management procedure, regulations on health checkup, and management system for occupational health monitoring and file management, etc. The EHS department offers training on various systems and operating regulations regularly and irregularly, and supervises implementation regularly. • Occupational hazard monitoring The company has appointed a qualified agency to conduct workplace occupational hazard monitoring annually, and an occupational hazard evaluation every 3 years, such as Tianheng Monitoring Co., Ltd. in November 2020, which issued a report (NBTH/J200365). The main test items include other dust, sodium carbonate, hydrogen sulfide, ammonia, carbon monoxide, carbon dioxide and noise. According to the report, the levels of the chemical and physical hazards to which workers are exposed comply with the national occupational exposure limits. • Disclosure of occupational hazards The company has established an occupational hazard warning and disclosure system, mainly including pre-job disclosure, on-site disclosure, and inspection result disclosure. When entering into a labor contract with a worker, the company would disclose potential occupational hazards and their consequences, protective measures, and remuneration, and specify these in the contract; in case of a job or duty change, the worker will be otherwise informed of occupational hazards. Bulletin boards are set up at workshops to disclose regulations on occupational disease prevention and control, operating regulations, emergency rescue measures, monitoring and evaluation results. In addition, the company will notify workers of occupational health checkup results timely. 51 Figure 5-1 Occupational hazard informing cards at different places • Occupational health monitoring The company has established an occupational health monitoring and file management system, and would organize pre-job, on-the-job and separation occupational health checkups. Based on checkup records during 2018-2020, there was no worker suspected of any occupational disease or contraindication. Occupational health monitoring files include occupational history, occupational hazard exposure history, occupational health checkup results, and occupational disease diagnosis and treatment records, etc. • Occupational health training The company offers pre-job and on-the-job occupational health training in the form of classroom teaching mainly, and trains workers transferred to new jobs or processes by means of classroom teaching, video watching and field education. All training records are included in files. Occupational health is offered in every May. • Emergency rescue plan and drilling The company has prepared an emergency plan and an annual emergency plan drilling schedule, including firefighting skills training, fire emergency rescue, joint emergency drill for leakage and environmental accidents, etc. In addition, the company has prepared an emergency plan for confined space accidents. The company would organize an emergency plan drill for occupational hazards in every June and November. In addition, the company has developed OHS management system, and requires that any department or individual should handle any occupational hazard timely, and staff will return to their posts only if any hazard is removed. The above system has been well implemented. 52 Figure 5-2 Emergency eye sprinkler in the wastewater treatment area Figure 5-3 Emergency drills • Infection risks For COVID-19 and other potential infectious diseases, a pandemic prevention and control organization has been established at the municipal and district levels. The company has established an internal pandemic prevention and control system, developed relevant plans, done well in pandemic prevention and control, material reservation, living support, security, etc., assigned persons for temperature taking, ventilation, disinfection, PPE distribution, publicity, education, and relevant information collection and submission, and defined emergency response processes for pandemic prevention and control to reduce infection risks. Findings: The company has established a sound occupational disease management system, and assigned a special department and dedicated staff to take charge of OHS. The company has realized “three simultaneities” in the construction of occupational disease protection facilities17”. An occupational hazard pre-assessment was conducted during project reasoning, occupational disease protection facilities designed before project construction, and an occupational hazard control effectiveness assessment conducted before the final inspection. The company conducts occupational health checkup and workplace occupational hazard monitoring every year at the 17Occupational protection facilities for construction projects must be designed, constructed, and put into operation together with the main part. 53 operation stage, and has established occupational health management systems and files. The company’s occupational health management complies with the applicable domestic laws and regulations, and is also consistent with the Bank’s ESF. 5.2.4 Primary suppliers’ workers Primary suppliers’ workers are about 40 drivers of kitchen waste collection vehicles, who belong to the district environmental sanitation offices. In China, only adults (18 years or above) can apply for a driving license. Therefore, there is no child or underage worker in Kaicheng Company’s primary suppliers’ workers. These drivers are work voluntarily, and may apply for resignation freely, so there is no forced labor. These drivers are exposed to traffic safety risks mainly. The company has no direct control over them out of the project site, but has imposed some restrictions on their driving behavior on the project site, such as a speed limit (5km/h). 5.2.5 Worker GRM Shouchuang Company has a smooth worker GRM that is similar to those of other enterprises in the park. The grievance channel is as follows: Workers first report issues to shift leaders, who hold a regular safety meeting at least weekly to identify and discuss such issues and site risks, and then report to the department manager. An anonymous complaint box is provided. The interviewed workers say that they have been told the grievance redress channels in induction and routine training, and know how to file grievances when they encounter problems related to labor contracts, remuneration, working conditions, etc. Any worker may file grievances about labor contracts, remuneration, working conditions, etc. directly to Ningbo Municipal Labor and Social Security Bureau, which discloses the hotlines of the municipal and district labor security supervision authorities on its official website (http://rsj.ningbo.gov.cn/art/2018/10/9/art_1229130162_49605564.html). 5.3 Community health and safety (ESS4) Communities involved in this subproject mainly include communities around the facility and those passed through by vehicles. The social audit covers: 1) facility impacts on nearby communities, 2) environmental disturbances to communities passed through by vehicles, and 3) road traffic safety risks, etc. 5.3.1 Impacts of vehicles on community health and safety In Ningbo, domestic waste is collected from communities, transferred to 6 transfer stations, and then transferred by special vehicles via the fixed transfer route of Provincial Highway 214— airport elevated road—road for solid waste disposal, avoiding communities, schools, villages, hospitals and other social sensitive sites where possible to reduce traffic risks. In addition, the company has installed a GPS for vehicles for speed and route monitoring. The 6 transfer stations are Haishu District station, Jiangbei District station, Binjiang station in Yinzhou District, Dingqiao station in Yinzhou District, Zhenhai District station and Dongqian Lake station. 54 Community disturbances by vehicles: The company has taken the following measures to avoid community environment pollution during waste transfer - • Waste unloading and compression are completed in the sealed unloading hall, and cleaners will clean vehicles and the floor timely. In addition, vehicles are sealed to avoid spills, and cleaned regularly to keep them clean. • Sound measures are taken for driver and vehicle management to reduce traffic accidents. • The fixed transfer route of Provincial Highway 214—airport elevated road—road for solid waste disposal has been established. • Vehicles entering the plant should be clean, sealed and free from spills, and cleaned after unloading. • The municipal urban administration bureau urges all districts to correct illegal vehicles, with focus on vehicle appearance, condition, marking and sealing to reduce waste spills and secondary pollution. Finding: Strict management measures for waste collection and transfer have been formulated, and vehicles are fully sealed during transfer, and run through a fixed route to minimize community disturbances. Figure 5-4 Waste Transfer Road and Vehicle 5.3.2 Impacts of plant operation on community health and safety Shouchuang Kitchen Waste Plant is located in Ningbo resource recycling base. In recent years, the villagers near Ningbo resource recycling base have been relocated successively. For example, Xuanpei Village of Dongqiao Town where the base is located was relocated entirely under the new countryside building subproject of the World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (P123323) implemented in 2015, and there is no resident within 1km around the construction site (Figure 2-5). As discussed above, there are other waste disposal facilities in the base, such as Haishu District waste-to-energy plant and Ningbo food waste disposal plant. Nearby residents say that they can still smell odor in summer or when the atmospheric pressure is low, though such odor is not necessarily from Shouchuang Kitchen Waste Plant. 55 In December 2019, Shouchuang Kitchen Waste Plant (Phase 1) passed the final environmental inspection. All wastewater and waste from Shouchuang Kitchen Waste Plant was discharged with environmental compliance, but such monitoring data was not provided to nearby residents timely. Findings: Shouchuang Company has taken a series of measures to reduce impacts of facility operation on nearby communities, but nearby residents say that they can still smell odor in summer or when the atmospheric pressure is low, and relevant monitoring data is not disclosed to them timely. Shouchuang Company should strengthen communication with nearby communities, information disclosure, internal management, and the management of waste transfer vehicles to reduce waste gas and wastewater emissions. 5.4 LAR (ESS5) Shouchuang Kitchen Waste Plant has a floor area of 76,700 m2 (about115 mu). In August 2015, Ningbo Municipal Government allocated the land to Ningbo PMO to construct Ningbo food waste disposal plant. In July 2018, this land was transferred instead of being allocated. The land for Shouchuang Kitchen Waste Plant was acquired along with the land for Kaicheng Kitchen Waste Plant. See Part 4 - LAR. Conclusion: The resettlement and compensation policies of this subproject comply with the principles and requirements in ESS5, and the fund disbursement procedure is transparent and efficient. All affected villages have paid compensation to the APs timely and fully. Over 89% of the respondents are satisfied or largely satisfied with this subproject, and few have objections to LAR, but think that there is no outstanding issue. Figure 5-5 Decision on state-owned land allocation for Shouchuang Kitchen Waste Plant 5.5 Issues and suggestions for correction According to the social audit, Table 5-1 summarizes social findings and issues, and gives corresponding suggestions. 56 Table 5-1 Findings and suggestions on Shouchuang Kitchen Waste Plant Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible There is no Disclose environmental settlement monitoring results to At least within 1km nearby residents semiannually around the timely, strengthen Shouchuang (July and facility, but communication with January) nearby them, and keep records residents can properly. still smell odor Disclose annual sometimes; no environmental reports Community relevant to nearby communities health and environmental ESS4 and timely, including basic 1 safety, monitoring Moderate ESS10 corporate information, communication report is Shouchuang January environmental mechanism disclosed management, timely. pollutants generated, management and discharge, etc. Establish a formal GRM, and offer sufficient Operation resources (manpower Shouchuang stage and finance) to ensure its proper operation. Improve the LMP to strengthen the management of Drivers may primary suppliers Shouchuang July 2022 fail to observe (drivers mainly), the operating especially work safety 2 ESS2 OHS Moderate and driving. regulations (e.g., over- Strengthen traffic safety speed). Shouchuang training for drivers, and district At least including traffic rules, sanitation quarterly speed and route offices requirements, etc. 57 6 Part 6: Social Audit Report on Associated Facility 4 of the WWTP - Offsite Sewer Lines The offline sewer lines are used to deliver wastewater from Kaicheng Kitchen Waste Plant, Shouchuang Kitchen Waste Plant, and centralized plastic waste sorting and processing plant to the WWTP of Ningbo resource recycling base for treatment. The offsite sewer lines will be constructed by Ningbo Qingyuan Water Environment Service Co., Ltd. using domestic counterpart funds, with a total length of about 2km, including DN160 lines of 1.5km, DN200 lines of 0.1km, and a line of 0.2km from the vehicle washing center to the conditioning tank. See Figure 2-1. The main line runs from Kaicheng Kitchen Waste Plant and runs through the road until the newly constructed regulating tank. The offsite sewer lines will be constructed along Route B in Ningbo resource recycling base, construction has not begun, and there is no village or resident along the lines. The main social impact is temporary road occupation. The affected road is an internal road in Ningbo resource recycling base, and will be restored after the completion of sewer line construction, and relevant costs will be included in the construction budget. Therefore, the social impact is “Low”. 58 7 Part 7: Social Audit Report on Bulky and Decoration Waste Disposal Plant The bulky and decoration waste disposal plant is one of Batch 2 subprojects, and will be newly constructed. It is located on the land acquired for Haishu District landfill, and LA has been completed, so this social audit is focused on land use. 7.1 Introduction to the bulky and decoration waste disposal plant This subproject is located in Ningbo resource recycling base, with a floor area of 39,451 m2 (about 59.2 mu) and a total building area of 22,150 m2. After completion, it will treat 300,000 tons of bulky and decoration waste, and 60,000 tons of existing waste annually. It will build a bulky waste production line treating 45,000 tons of bulky waste annually, an RDF (refuse derived fuel) production line with an annual capacity of 82,000 tons and a production line with an annual capacity of 18 million reclaimed bricks. The owner is Ningbo Meijing Construction Solid Waste Recycling Technology Co., Ltd., which was founded in May 2021. 7.2 LAR (ESS5) The bulky and decoration waste disposal plant is located in Haishu District landfill, and LA was completed in 2004. All LA compensation agreements have been signed, and the LA compensation was fully paid. There are still some structures and equipment on the site to be relocated. In addition, Ningbo Municipal Natural Resources and Planning Bureau is adjusting the master land utilization plan, which is expected to be completed in October 2022; the PIU will obtain the right to use state-owned by contractual transfer in December 2022, and the transfer fee is about 700,000 yuan/mu, all borne by the PIU. 1) Collective building in Xuanpei Village There is a 950 m2 collective office building of Xuanpei Village on the site, being a two-storied masonry concrete building, built in 2004 (see Figure 2-1). According to interviews with town officials, the collective office building was compensated for under the Ningbo Solid Waste Disposal Project in 2012, since the new office building has not been completed, the existing office building has been kept, and the village committee will move into the new office building after its completion. 8 staff workers of the village committee are still working here. According to the interview of the village head, the village committee will move to a new office building in Dongxuan Garden in June 2022. The new office building is being decorated (see Figure 2-2). 59 Figure 7-1 Collective building of Xuanpei Village to be demolished Figure 7-2 New office building of Xuanpei Village being decorated 2) Workers’ dormitory A workers’ dormitory on the site is still in use, with a building area of 366 m2. This building is owned by Haishu District landfill, and about 10 landfill O&M workers live here temporarily. This building has clear ownership, and can be demolished based on construction progress at any time, without affecting project construction. However, the landfill should be notified in advance to make arrangements for these workers. 60 Figure 7-3 Workers’ dormitory of the landfill 3) Abandoned workshops and equipment There are some abandoned workshops (totaling 300 m2) and equipment on the site. The abandoned workshops belong to the landfill, and the abandoned equipment belongs to New CWI (Ningbo) Environmental Technology Co., Ltd., including a biogas power generator, transformers, etc. New CWI Company and Haishu District Urban Administration Bureau cooperated on landfill biogas power generation, but the landfill was closed down temporarily in 2017. Haishu District Urban Administration Bureau is negotiating equipment relocation with New CWI Company, and relocation is expected to be completed by the end of December 2022. Figure 7-4 Abandoned workshop and equipment Conclusion: LA and compensation for the bulky and decoration waste disposal plant have been completed, but some structures and equipment on the site have not been cleared. Ningbo PMO and the PIU should strengthen communication and coordination with the competent authorities (especially Haishu District Urban Administration Bureau, Dongqiao Town Government 61 and Xuanpei Village Committee), and complete structure demolition, staff resettlement and equipment relocation at least 3 months before the beginning of construction. 7.3 Issues and suggestions for correction According to the social audit, Table 7-1 summarizes social findings and issues, and gives corresponding suggestions. Table 7-1 Findings and suggestions on the bulky and decoration waste disposal plant Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible Strengthen coordination with the Collective house village committee, and complete Ningbo demolition and 1 ESS5 Site clearing Low house demolition and staff PMO and Jun 2022 staff resettlement 3 months before the Meijing resettlement beginning of construction. Notify the agency and staff Ningbo Worker concerned to move 3 months 2 ESS5 Site clearing Low PMO and Jun 2022 dormitory before the beginning of Meijing construction. Complete ownership negotiation with New CWI (Ningbo) Environmental Technology Co., Abandoned Ltd. Ningbo 3 ESS5 Site clearing workshop and Low in coordination with the Haishu PMO and Dec 2022 equipment District Urban Administration Meijing Bureau, and complete equipment relocation by the end of December 2021. Once monthly The PIU has not Strengthen communication and until a obtained the coordination with the competent Ningbo certificate Land 4 ESS5 right to use Low authorities, and complete land PMO and of the right approval state-owned allocation or transfer before the Meijing to use land. beginning of construction. state- owned land is obtained 62 8 Part 8: Social Audit Report on the four recyclables sorting centers Four recyclables sorting centers in 4 districts (Zhenhai, Beilun, Yinzhou and Haishu) are to be constructed or reconstructed under Batch 2 subprojects, where the recyclables sorting centers in Yinzhou and Haishu Districts will be reconstructed from existing facilities, and the other two will be constructed. This subproject will be implemented by Ningbo Dabashou Eco-digital Technology Co., Ltd. (Dabashou Company), which is also a PIU of Batch 1 subprojects. The other 3 recyclables sorting centers (Fenghua District, Jiangbei District and a demonstration one) will be implemented in Batch 3 (preparation to be started by June 2023). The social audit reviews the land used for the recyclables sorting centers. For the two reconstructed recyclables sorting centers (Yinzhou and Haishu Districts), the social audit also reviews the following: 1) labor and working conditions, 2) community health and safety, and 3) public participation and grievance redress. In particular, public participation and grievance redress are overlapping issues that run through the whole project lifecycle. 8.1 Overview of the sorting centers Among the 4 recyclables sorting centers, the Jiangshan recyclables sorting center in Yinzhou District and Gulin recyclables sorting center in Haishu District will be reconstructed from existing facilities. The operator is Dabashou Company. The sorting centers target recyclables, including plastic bottles, low-value dirty plastics, daily chemical plastic waste, waste paper, waste glass, waste metals, waste textiles, etc. Currently, the Jiangshan sorting center in Yinzhou District receives about 250 tons of recyclables, and the Gulin sorting center in Haishu District receives about 390 tons of recyclables monthly. Recyclables are mostly waste paper, waste plastics, waste glass, waste textiles, etc. from smart waste separation cabins deployed in communities, and transported to the recyclables sorting centers by vans under the direction of an intelligent system. Such waste is transferred by vans to the recyclables sorting center simple manual sorting and compression, and then sold to terminal waste re-utilization enterprises. The main equipment is a packing machine, a forklift and a weighbridge. The sorting centers do not involve recyclables washing, and does not generate industrial wastewater, but generates cleaning and domestic wastewater only. 8.2 LAR (ESS5) Except foe the Jiangshan recyclables sorting center in Yinzhou District and Gulin recyclables sorting center in Haishu District, the sites of the other two recyclables sorting centers have been fixed preliminarily. The PIU is securing land in coordination with the competent authorities (district urban administration bureaus, and natural resources and planning bureaus). See Table 8- 1. Table 8-1 Summary of basic information of recyclable sorting centers 63 Floor Time of Current Land Approval status of land No. District Location area land use Remarks land use type use (mu) approval West of the The master land Luotuo Sub- Unused utilization plan is being Urban End of Dec 1 Zhenhai district 9 state- adjusted, and will be land 2022 transfer owned land completed in October station 2022. The master land East of the Unused utilization plan is being Urban End of Dec 2 Beilun Daxie No.2 9 state- adjusted, and will be land 2022 Bridge owned land completed in October 2022. Southeast of The master land Existing Mingguang utilization plan is being recyclables Urban End of Dec Existing facility 3 Yinzhou Road, 6.97 adjusted, and will be sorting land 2023 on leased land18 Jiangshan completed in October center Town 2022. The master land Guangze Existing utilization plan is being Road, Guoxia recyclables Urban End of Dec Existing facility 4 Haishu 15 adjusted, and will be Village, Gulin sorting land 2023 on leased land19 completed in October Town center 2022. Source: fieldwork summary The land information of the recyclables sorting centers is as follows: ⚫ Zhenhai District recyclables sorting center This center is located west of the waste transfer station of Luotuo Sub-district, with a floor area of 9 mu, being state-owned unused land. The land used was formerly collective land of Luotuo Village of Luotuo Sub-district, and part of Batch 3 land for urban construction projects of Ningbo City in 2016 (plot ZH08-04-11-01, with a total area of 22.3 mu (about 1.48 hectares)). In December 2016, Zhenhai District LA and HD Management Office (Party A) and Luotuo Village entered into an LA compensation agreement (No.: Zhen Zheng Zi (2016) No.18). According to the agreement, 22.5 mu of land will be acquired, with total compensation of 1.446 million yuan, including LA compensation (land compensation and resettlement subsidy) of 1.335 million yuan, and young-crop compensation of 111,000 yuan. In addition, 9 persons will be eligible for endowment insurance for LEFs, and the list of LEFs insured will be fixed by Party B. According to interviews and document review, LAR has been completed, all compensation was paid to the AHs, and the land used was converted into state-owned construction land. Such land is currently unused. 18 The term of the existing lease contract is 5 years, and will expire on December 31, 2025. 19 The term of the existing lease contract is 5 years, and will expire on August 31, 2024. 64 Figure 8-1 Compensation agreement for the Zhenhai District recyclables sorting center Figure 8-2 LA compensation payment voucher for the Zhenhai District recyclables sorting center ⚫ Beilun District recyclables sorting center This center is located in Dawan plot in Chaiqiao Sub-district, with a floor area of 9 mu, being state-owned unused land. The land used is obtained by the reclamation of state-owned tidal flat, and is currently unused. ⚫ Jiangshan recyclables sorting center in Yinzhou District Jiangshan recyclables sorting center in Yinzhou District is located south of Jingting bus stop in Jiangshan Town, with a floor area of 6.97 mu. Its land is leased from Jiangshan Town Government. The land used is state-owned construction land. In March 2021, NBSMC Renewable Resources Technology Co., Ltd. 20 (Party B) and Jiangshan Town Government (Party A) entered into a land lease agreement, with a term of 5 years, from January 1, 2021 to December 31, 2025. Rental is paid in each March. For example, the rental from March 2021 to February 2022 is paid in March 2021. If Party B is to renew the agreement, it shall give a two-month prior written notice to Party A, and both parties will otherwise enter into a lease agreement. During the term, Party A shall have 20 This company is the holding company of Dabashou. 65 the right to withdraw the land due to policy adjustment, village appearance improvement, old village reconstruction, road construction, etc., subject to a 30-day prior notice to Party B, and Party B shall move and hand over the land to Party A within 30 days after receiving such notice. ⚫ Gulin recyclables sorting center in Haishu District This center is located in Guoxia Village, Haishu District, with a floor area of 15 mu, being leased land. Such land is owned by Haishu District Transport Bureau, and managed by Gulin Town Government. The land used is state-owned construction land. In June 2019, NBSMC Renewable Resources Technology Co., Ltd. and Gulin Town Government entered a land lease agreement, with a term of 5 years from September 1, 2019 to August 31, 2024. Such agreement can also be renewed or terminated. Rental is paid in each October. For example, the rental from September 2021 to August 2022 is paid in September 2021. Current site of the Zhenhai District recyclables sorting center 66 Current site of the Beilun District recyclables sorting center Current site of the Jingshan recyclables sorting center in Yinzhou District (existing facility) 67 Gulin recyclable sorting center in Haishu District (existing facility) Figure 8-3 Current conditions of sorting center The 4 sorting centers are all located on state-owned construction land, in which the centers in Yinzhou and Haishu Districts are operating. Ningbo PMO and PIU are adjusting land utilization plans in coordination with the district natural resources and planning, and urban administration bureaus to ensure that the land used for the sorting centers is lawful and compliant. By the end of November 2021, the sites and land of the sorting centers still needed further approvals from competent authorities, especially natural resources bureaus. Ningbo PMO and the PIU should secure land in coordination with the competent authorities. According to the applicable laws and regulations, the PIU should obtain the approval of the right to use state-owned land before the beginning of civil construction (or equipment installation). Ningbo PMO and the PIU conducted adequate consultation with the agencies concerned (Ningbo Municipal Natural Resources and Planning Bureau, and district urban administration bureaus), and agreed on the following action plan: 1) Complete the land use adjustment of the relevant facilities and obtain approval by October 2022 to comply with Ningbo’s master land utilization plan; 2) District governments will allocate the land to the district sanitation authorities, and the PIU will lease such land to construct sorting centers for 30 years. The land for the sorting centers in Zhenhai and Jiangbei Districts is expected to be obtained by the end of 2022, and that for those in Yinzhou and Haishu District is expected to be obtained by the end of 2023. The rental is about 50,000 yuan/mu; and 3). The social consultant confirmed that Dabashou Company (the PIU for recyclable sorting centers) will pay the land rentals to the Urban Administration Bureau of relevant districts. 8.3 Labor and working conditions (ESS2) Each of Jiangshan recyclables sorting center in Yinzhou District and Gulin recyclables sorting center in Haishu District has about 10 workers, including two managers (direct hires of Dabashou Company) and 8 sorters (contract workers). 68 The disposal process at Jiangshan and Gulin recyclables sorting centers is manual sorting, compression and packing for sale. Jiangshan and Gulin recyclables sorting centers have the same equipment, including a 160t horizontal packing machine, a 3.5t clamping forklift, a 3.5t flat forklift, a 100t weighbridge and a 10t weighbridge. ⚫ Employment terms and labor protection Dabashou Company is a PIU of Batch 1 subprojects. According to the social audit on Batch 1 subprojects, the PIU has no gap based on ESS2 requirements in terms of employment terms and conditions, and labor protection. ⚫ Occupational health risks Since recyclables are from smart waste cabins in communities, they are relatively clean, and have relatively occupational health risks for workers. According to the disposal process, occupational hazards for workers mainly include odor, dust, physical injuries (scratches), noise, high temperature (summer), etc. According to manager and worker interviews, workplace occupational hazards are insignificant. Except for paperboards, recyclables have almost no dust; there is some odor in summer, but it can be reduced by window opening and fan ventilation. In addition, the company distributes disposable face masks to workers, and would check the workplace for PPE (face masks, gloves, etc.) wearing irregularly every month. However, the social team found during the survey that some workers did not wear PPE as required. ⚫ Safety risks The PIU has established an on-site job evaluation system, including job discipline, on-site health, operating safety, etc. On-site safety risks are from forklift operation mainly. Each sorting center stipulates a fixed route and a speed limit (5km/h) for forklifts, and assigns someone to command to ensure on-site safety. Notices of job responsibilities and safety instructions are posted conspicuously at the workplace. Figure 8-4 Notices of job responsibilities and safety instructions According to manager and worker interviews, the recyclables sorting centers comply strictly with the on-site operating systems during operation. Based on field observation, workers wear 69 work clothes and safety shoes at work, and forklifts run along fixed routes and comply strictly with the speed limit. ⚫ Contracted workers Sorters at each sorting center are hired by a third-party agency, mostly women aged 45-55 years. Workers dispatched by third parties usually enter into a contract annually. There are 18 drivers dealing with waste transfer (from smart waste cabins in communities to recyclable sorting centers) in total, all hired by a third-party agency, including 12 at the Jiangshan recyclables sorting center and 6 at the Gulin recyclables sorting center. In the social audit, the sample labor contract for contract workers, and Measures for the Management of Third-Party Dispatched Workers were obtained. A labor contract between a contract worker and a third-party specifies the detailed job requirements, scope of work, workplace, working hours, rest time, remuneration, overtime pay, social insurance and benefits, labor protection and conditions, occupational hazard prevention, financial compensation, etc. The Measures for the Management of Third-Party Dispatched Workers specify labor remuneration, social insurance, overtime pay, and other labor rights. For the sorters, Dabashou Company provides adequate PPE (face masks, gloves, etc.) to workers. Dabashou Company pays salaries and benefits on schedule monthly, and is free from child and forced labor. Some temporary workers are employed when the workload is heavy, but have not entered labor contracts. For drivers, the main risks are traffic safety risks. The third-party agency has taken the following measures: 1) implementing the applicable state, provincial and municipal traffic safety regulations, formulating safety regulations and measures, and strengthening safety education and management; 2) ensuring that drivers are licensed, and observe the traffic rules and operating regulations to ensure driving safety; 3) ensuring vehicle safety through annual review and proper management, and keep vehicle operation, repair and accident records timely, fully and accurately; and 4) ensuring that vehicles drive along fixed routes and according to the speed limit under online GPS monitoring. Findings: Although Dabashou Company has established a sound LMP, some workers do not use PPE as required, and some temporary workers have not entered labor contracts. Dabashou Company should establish an LMP according to ESS2 (see the SIA Report for the Batch 1 subprojects), establish a procedure to manage and monitor third-party performance, and define nonconformity remedies for third-parties in service contracts. 8.4 Community health and safety (ESS4) Communities involved in this subproject mainly include communities around the facility and those passed through by vehicles. The social audit covers impacts of vehicles on communities and facility impacts on nearby communities. 8.4.1 Impacts of vehicles on community health and safety For the recyclables sorting centers, a recyclable collection and transfer system consists of an integrated logistics management platform, a smart waste cabin and a sorting center. Each sorting 70 center has 13-15 vehicle runs, and all vehicles are enclosed vans, for which the owner has taken sound safety measures, such as GPS speed monitoring, speed limit, voice prompt and anti-fatigue. Jiangshan recyclables sorting center in Yinzhou District and Gulin recyclables sorting center in Haishu District are away from communities, hospitals, schools, etc., and have minor traffic safety risks for communities. 8.4.2 Impacts of facility operation on community health and safety The existing sorting centers involve manual operations mainly, and generate small quantities of wastewater, waste gases, odor and noise. The nearest community is 200m away, and the sorting centers generate little wastewater and waste pollution. The sorting centers have no formal grievance redress channel, and have not received any grievance from nearby residents. Findings: Although the sorting centers have minor environmental impacts, and have not received any grievance from nearby residents, Dabashou Company is advised to improve its external communication mechanism, and strengthen communication with nearby communities. 8.5 Issues and suggestions for correction According to the social audit, Table 8-2 summarizes social findings and issues, and gives corresponding suggestions. Table 8-2 Findings and suggestions on the recyclable sorting centers Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible Some temporary Improve the Contracted workers have not management of Upon 1 ESS2 Moderate Helper workers signed a labor contract workers recruitment contract. according to the LMP. Some workers do Strengthen internal not use PPE as management to Working required during ensure that workers 2 ESS2 OHS Moderate Helper days; at least operation, which wear PPE properly, quarterly may lead to OHS and train workers risks. regularly. Establish a formal community There is no communication Community formal mechanism, As per the 3 ESS4 health and community Moderate Helper strengthen community SEP safety communication communication, and mechanism. respond to community concerns timely. The selected sites, Site and Secure land, and Ningbo PMO, environmental October 4 ESS5 planning Moderate complete land district urban sanitation facility 2022 adjustment adjustment in administration plan, and land use 71 Applicable Findings and Risk Agency No. Concern Suggestions Timing ESSs issues rating responsible plan have not coordination with the bureaus, been approved by competent authorities. Helper the government. Land for the sorting centers in Zhenhai and Jiangbei No right to use The land will be leased Districts state-owned land for construction for 30 obtained by Acquisition has been years. The rental is the end of of the right 5 ESS5 obtained formally Moderate about 50,000 Helper 2022, and to use state- for the 4 yuan/mu. All land use that for owned land recyclables costs will be borne by those in sorting centers. the PIU. Yinzhou and Haishu District to be obtained by the end of 2023 72 9 Part 9: Key Conclusions of the Social Audit 9.1 Conclusions Among Batch 2 subprojects, the existing facilities are the WWTP to be reconstructed, and two recyclables sorting centers (Jiangshan recyclables sorting center in Yinzhou District, and Gulin recyclables sorting center in Haishu District). The existing facilities has no high social risk. WWTP: It will be reconstructed on the existing site, and its LAR risks are “low”. The company has entered labor contracts with laborers, is free from child and forced labor, and has established an EHS department and an OHS system, including the construction and maintenance of occupational health protection facilities, PPE, occupational health monitoring and evaluation, publicity, worker health monitoring, etc. Based on the field survey and interviews, OHS risks are “low”. However, the company’s LMP has no specific requirement for contractor and primary supplier management. Recyclables sorting centers: Based on the currently selected sites, the land used has been acquired and reserved by the government, but the land use plan needs to be adjusted, and the PIU has not received a certificate of land use right, so land use risks are “moderate”; since all recyclables are from smart waste separation cabins in communities, they are relatively clean. During waste sorting, worker occupational health risks are relatively minor, and the recyclable sorting centers have developed on-site operating regulations, and offer PPE for free to reduce occupational hazards. The PIU21 has established a sound LMP, but the social team found during the survey that some workers did not wear PPE (face masks, gloves, etc.) as required at work, and temporary workers might have not entered into a labor contract. Sound traffic risk control measures have been taken for vehicles, such as GPS speed monitoring, speed limit, voice prompt and anti-fatigue, and waste collection and transfer routes are kept away from densely populated communities. Therefore, traffic and community safety risks are “low”. Bulky and decoration waste disposal plant: It will be built on land acquired and reserved by the government, but it was found during the survey that some attachments on site were to be cleared, and the PIU had not received a certificate of land use right, so its LAR risks are “moderate”. For the associated facilities, a certificate of the right to use state-owned land has been obtained for Haishu District landfill, Kaicheng Kitchen Waste Plant, and Shouchuang Kitchen Waste Plant, so its LAR risks are “low”. The company has entered into labor contracts with laborers, is free from child and forced labor, and has established an EHS department and an OHS system, including the construction and maintenance of occupational health protection facilities, PPE, occupational health monitoring and evaluation, publicity, worker health monitoring, etc. Based on the field survey and interviews, OHS risks are “low”. However, the company’s LMP has no specific requirement for contractor and primary supplier management. 21 It is also a PIU of Batch 1 subprojects. 73 Kaicheng Kitchen Waste Plant and Shouchuang Kitchen Waste Plant have developed strict waste collection and transfer management measures, and use fully sealed vehicles for transport via fixed routes, with minor community disturbances. In addition, it is found that adequate information disclosure and public participation were conducted for the existing and associated facilities of the Batch 2 subprojects during the EIA, social stability risk assessment, and LAR. However, compared to the Bank’s ESF, the existing and associated facilities of Batch 2 subprojects need to be strengthened in community health and safety, communication, grievance redress, etc., such as disclosing E&S monitoring reports to the public regularly (especially water and air quality data), and responding to community concerns positively. 9.2 Issues and suggestions for correction Table 9-1 summarizes the key issues identified in this social audit and the corresponding suggestions. In the future, the external social M&E agency appointed by Ningbo PMO will track M&E effectiveness continually, and report to the Bank regularly. 74 Table 9-1 Summary of issues identified in this social audit and suggestions for correction Applicable No. Concern Findings and issues Risk rating Suggestions Agency responsible Timing ESSs 1. WWTP of Ningbo resource recycling base Third-party labor Improve the LMP to strengthen Mingzhou and 1 ESS2 Labor management contract management Moderate third-party labor management Dec. 31, 2022 Qingyuan is unsound. and monitoring. Environmental Disclose environmental monitoring shows that monitoring results to and At least wastewater and waste strengthen communication with Qingyuan semiannually gases meet the nearby residents, and keep (July and January) emission standards. records. Nearby residents Disclose annual environmental worry that odor Community health reports to nearby communities produced by the ESS4 and and safety, timely, including basic corporate 2 facility may affect their Moderate ESS10 communication information, environmental Qingyuan January health; residents may mechanism management, pollutants express their concerns generated, management and through relevant discharge, etc. channels, but there is no relevant written Establish a formal GRM, and offer record. There are still sufficient resources (manpower Qingyuan As per the SEP some gaps from and finance) to ensure its proper ESS10. operation. 2. Associated Facility 1 of the WWTP - Haishu District landfill There is no resident Disclose environmental within 1km around the monitoring results to nearby At least Community health construction site. residents timely, strengthen Qingyuan semiannually ESS4 and and safety, However, nearby communication with them, and (July and January) 1 Moderate ESS10 communication residents say that they keep records properly. mechanism can still smell odor Disclose annual environmental sometimes, and have reports to nearby communities Qingyuan January not seen environmental timely, including basic corporate 75 Applicable No. Concern Findings and issues Risk rating Suggestions Agency responsible Timing ESSs monitoring reports information, environmental timely. management, pollutants generated, management and discharge, etc. Establish a formal GRM, and offer sufficient resources (manpower Qingyuan As per the SEP and finance) to ensure its proper operation. 3. Associated Facility 2 of the WWTP - Kaicheng Kitchen Waste Plant Disclose annual environmental reports to nearby communities timely, including basic corporate At least There is no resident information, environmental Kaicheng semiannually within 1km around the management, pollutants (July and January) construction site. generated, management and Community health However, nearby discharge, etc. ESS4 and and safety, residents say that they 1 Moderate Establish a formal GRM, and offer ESS10 communication can still smell odor sufficient resources (manpower mechanism sometimes, and have Kaicheng January and finance) to ensure its proper not seen environmental operation. monitoring reports timely. Establish a formal GRM, and offer sufficient resources (manpower Kaicheng Operation stage and finance) to ensure its proper operation. Improve the LMP to strengthen Drivers may fail to the management of primary observe the operating 2 ESS2 OHS Moderate suppliers (drivers mainly), Kaicheng July 2022 regulations (e.g., over- especially work safety and speed). driving. 76 Applicable No. Concern Findings and issues Risk rating Suggestions Agency responsible Timing ESSs Strengthen traffic safety training Kaicheng and for drivers, including traffic rules, district sanitation At least quarterly speed and route requirements, offices etc. 4. Associated Facility 3 of the WWTP - Shouchuang Kitchen Waste Plant Disclose environmental monitoring results to nearby At least residents timely, strengthen Shouchuang semiannually communication with them, and (July and January) keep records properly. There is no settlement within 1km around the Disclose annual environmental Community health facility, but nearby reports to nearby communities ESS4 and and safety, residents can still smell timely, including basic corporate 1 Moderate ESS10 communication odor sometimes; no information, environmental Shouchuang January mechanism relevant environmental management, pollutants monitoring report is generated, management and disclosed timely. discharge, etc. Establish a formal GRM, and offer sufficient resources (manpower Shouchuang Operation stage and finance) to ensure its proper operation. Improve the LMP to strengthen the management of primary suppliers (drivers mainly), Shouchuang July 2022 Drivers may fail to especially work safety and observe the operating driving. 2 ESS2 OHS Moderate regulations (e.g., over- speed). Strengthen traffic safety training Shouchuang and for drivers, including traffic rules, district sanitation At least quarterly speed and route requirements, offices etc. 5. Bulky and decoration waste disposal plant 77 Applicable No. Concern Findings and issues Risk rating Suggestions Agency responsible Timing ESSs Strengthen coordination with the Collective house village committee, and complete Ningbo PMO and 1 ESS5 Site clearing demolition and staff Low house demolition and staff Jun 2022 Meijing resettlement resettlement 3 months before the beginning of construction. Notify the agency and staff concerned to move 3 months Ningbo PMO and 2 ESS5 Site clearing Worker dormitory Low Jun 2022 before the beginning of Meijing construction. Complete ownership negotiation with New CWI (Ningbo) Environmental Technology Co., Ltd. Abandoned workshop Ningbo PMO and 3 ESS5 Site clearing Low in coordination with the Haishu Dec 2022 and equipment Meijing District Urban Administration Bureau, and complete equipment relocation by end of December 2021. Strengthen communication and Once monthly The PIU has not coordination with the competent until a certificate Ningbo PMO and 4 ESS5 Land approval obtained the right to Low authorities, and complete land of the right to use Meijing use state-owned land. allocation or transfer before the state-owned land beginning of construction. is obtained 6. Recyclables sorting centers Some temporary Improve the management of 1 ESS2 Contracted workers workers have not Moderate contract workers according to Dabashou Upon recruitment signed a labor contract. the LMP. Strengthen internal management Some workers do not to ensure that workers wear PPE Working days; at 2 ESS2 OHS use PPE as required Moderate Dabashou properly, and train workers least quarterly during operation, regularly. 78 Applicable No. Concern Findings and issues Risk rating Suggestions Agency responsible Timing ESSs which may lead to OHS risks. Establish a formal community There is no formal communication mechanism, Community health community 3 ESS4 Moderate strengthen community Dabashou As per the SEP and safety communication communication, and respond to mechanism. community concerns timely. The selected sites, environmental Ningbo PMO, Secure land, and complete land Site and planning sanitation facility plan, district urban 4 ESS5 Moderate adjustment in coordination with October 2022 adjustment and land use plan have administration the competent authorities. not been approved by bureaus, Dabashou the government. Land for the sorting centers in Zhenhai and No right to use state- The land will be leased for Jiangbei Districts Acquisition of the owned land has been construction for 30 years. The obtained by the 5 ESS5 right to use state- obtained formally for Moderate rental is about 50,000 yuan/mu. Dabashou end of 2022, and owned land the 4 recyclable sorting All land use costs will be borne that for those in centers. by the PIU. Yinzhou and Haishu District to be obtained by the end of 2023 79 Appendixes Appendixes 1. References for the Social Audit No. Document Source WWTP reconstruction and expansion Work Attendance Management System of 1 NMII NMII 2 Sample Labor Contract of NMII NMII Human Resources Management System of 3 NMII NMII Organizational chart of Ningbo Qingyuan Ningbo Qingyuan Water Environment 4 Water Environment Service Co., Ltd. Service Co., Ltd. WWTP Progress Report and Process Ningbo Qingyuan Water Environment 5 Introduction Service Co., Ltd. Associated facility — Haishu landfill Occupational Hazard Assessment Report of 6 Mingzhou Company Mingzhou Company Workplace Occupational Hazard Test Report 7 Mingzhou Company of Mingzhou Company 8 Employee Occupational Health Checkup Form Mingzhou Company 9 Trade Union System of Mingzhou Company Mingzhou Company Associated facility — Ningbo Kitchen Waste Disposal Plant Relocation Project (Phase 2) Occupational Hazard Control Assessment 10 Report of the Ningbo Kitchen Waste Disposal Kaicheng Company Plant Relocation Project (Phase 1) Health Management System of Kaicheng 11 Kaicheng Company Company Personnel Management System of Kaicheng 12 Kaicheng Company Company Production Management System of Kaicheng 13 Kaicheng Company Company EIA Report of the Ningbo Kitchen Waste 14 Kaicheng Company Disposal Plant Relocation Project (Phase 2) 15 Sample Labor Contract of Kaicheng Company Kaicheng Company 80 No. Document Source Associated facility — Shouchuang Kitchen Waste Plant (Phase 2) Occupational Hazard Pre-assessment Report of the Technological Transformation and 16 Shouchuang Company Expansion Project of the Ningbo Food Waste Disposal Plant Safety Pre-assessment Report of the Technological Transformation and Expansion 17 Shouchuang Company Project of the Ningbo Food Waste Disposal Plant Personnel Management System of 18 Shouchuang Company Shouchuang Company 19 Sample Labor Contract of Kaicheng Company Shouchuang Company 20 Emergency Plan of of Kaicheng Company Shouchuang Company OHS Management System of Kaicheng 21 Shouchuang Company Company Resettlement policies and documents for associated facilities LA Entrustment Agreement of the Dongqiao File of Yinzhou Oasis Energy Utilization 22 Landfill Project in Yinzhou District Co., Ltd. LA Compensation Agreement of the Dongqiao File of Yinzhou Oasis Energy Utilization 23 Landfill Project in Yinzhou District Co., Ltd. File of Yinzhou Oasis Energy Utilization 24 LA and HD Agreement of the Landfill Co., Ltd. Reference compensation rates for young File of Yinzhou Oasis Energy Utilization 25 crops, perennial crops, ground attachments Co., Ltd. and structures Woodland Administration Measures of File of Yinzhou Oasis Energy Utilization 26 Zhejiang Province (Decree No.43 of the Co., Ltd. provincial government in 1994) Output value estimate report of flowers, trees, Ningbo Academy of Agricultural 27 tea gardens and bamboos of the landfill Sciences LA and HD Administration Section of the LA compensation calculation sheet of the 28 Yinzhou District Land and Resources Dongqiao landfill Bureau Ningbo Municipal Law Enforcement 29 RAP for Phase 1 of the Project Bureau 81 Appendixes 2. List of Interviewees No. Interviewee 1 Ningbo Municipal Law Enforcement Bureau 2 Ningbo Municipal Public Utilities Investment Co., Ltd. 3 Qingyuan 4 Mingzhou 5 Kaicheng 6 Shouchuang 7 Dabashou 8 Jiangshan recyclables sorting center in Yinzhou District (existing) 9 Gulin recyclables sorting center in Haishu District (existing) 10 Haishu District Natural Resources and Planning Bureau 11 Haishu District Urban Administration Bureau 12 Cicheng New Town waste transfer station in Jiangbei District 13 Yuelin recyclables sorting center in Fenghua District 14 Haishu landfill 15 Dongqiao Town Government in Haishu District 16 Peixuan and Bailiangqiao Villages, Dongqiao Town, Haishu District 17 Luotuo Sub-district, Zhenhai District 18 Jiangbei District Natural Resources and Planning Bureau 82 Appendixes 3. Fieldwork and Interviews FGD in Xuanpei Village FGD at the Dongqiao Town Government Fieldwork at the resettlement site Seminar at the SIA agency FGD at Kaicheng Company Visit to the publicity base of the park 83 LA range Meeting registration form 84