INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA3854 Public Disclosure Copy Date ISDS Prepared/Updated: 16-May-2013 Date ISDS Approved/Disclosed: 17-Mar-2013, 18-May-2013 I. BASIC INFORMATION 1. Basic Project Data Country: China Project ID: P132154 Project Name: China: Nanchang Urban Rail Project (P132154) Task Team Gerald Paul Ollivier Leader: Estimated 19-Mar-2013 Estimated 20-Jun-2013 Appraisal Date: Board Date: Managing Unit: EASCS Lending Specific Investment Loan Instrument: Sector(s): Urban Transport (100%) Theme(s): Other urban development (90%), Municipal governance and institution building (10%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Public Disclosure Copy Total Project Cost: 2571.23 Total Bank Financing: 250.00 Total Cofinancing: Financing Gap: 0.00 Financing Source Amount Borrower 2321.23 International Bank for Reconstruction and Development 250.00 Total 2571.23 Environmental A - Full Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The proposed project development objective (PDO) is to provide an effective urban mass rapid transit system of appropriate quality along the Line 2 corridor from ZhanQianNanDaDao Station to XinJiaAn Station. 3. Project Description Page 1 of 10 Component 1: Construction of Line 2. This component includes all construction activities for the Urban Rail Line 2 (about 23.78km). Line 2 will connect western and eastern Nanchang. It will start from the Line 2 depot, go through the ZhanQianNanDaDao Station in southwest Nanchang, run Public Disclosure Copy along the west bank of the Gan River, up to Chunhui Road, then move east under the Gan River onto Yangming Road and turn south to XinJiaAn Station in southeast Nanchang. Line 2 includes 21 stations, which will all be located underground and connected by tunnels. The Line 2 depot for maintenance and stabling will be located above ground at the end of Line 2 in southwest Nanchang. The project contributes partially to the cost of a command and control center for the urban rail network. Six interchange stations will provide convenient interchange with other urban rail lines. The Bank loan is expected to be fully used under this component. It will support the construction of eight stations and eight tunnels in between. All are located on the east side of the Gan River. These civil works will take place in the densest part of the city and are expected to be among the most complex. Those stations include interchange stations with the planned Line 3 and future Line 4, and an interchange with Nanchang east railway station. Component 2: Equipment for Line 2. This component includes all the equipment necessary to the successful operation of Line 2 such as rolling stock, power supply, control system, signaling system, communication system, monitoring system, fare collection system, safety and security system, ventilation and air conditioning system, water supply, sewerage and fire protection system, and station auxiliary equipment. Component 3: Design, Construction Management and Technical Assistance. This component includes (i) activities for design and preparation of the project; (ii) activities for construction management and quality assurance; and (iii) technical assistance and capacity building to relevant staff in Nanchang Municipality (NM) and the Urban Rail Company (URC) to take steps to improve ridership levels (ridership modeling, scenario testing, fare integration), to increase land value around stations, and to improve financial management and internal audit functions for the Nanchang URC. Public Disclosure Copy These consulting services are expected to be funded by the URC, under terms of reference discussed with the Bank. Component 4: Safeguards and Other Construction Costs. This component will include the land acquisition and resettlement costs, construction site preparation (environmental mitigation measures) as well as other project related cost such as engineering insurance, work safety assurance, inspection and acceptance, and project cost estimation. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project is located in Nanchang City, capital city of Jiangxi Province. The proposed Nanchang Urban Rail Line 2 is located in the urban build up area of Nanchang, crossing the Gan River and connecting the older part of the city and its newly developed zone together. The project crossing area is mainly the first and secondary terraces of the Gan River. The stratigraphic structure and distribution of Nanchang is diversified. According to its geological characteristics, the project area can be divided into three categories: ZoneⅠ(from start point to AK22+800) belong to low-medium compressed soil with good mechanical properties; ZoneⅡ(from AK22+800 to AK35+400) belong to recently deposited soil with poor mechanical properties; and Zone Ⅲ(from AK35+400 to AK43 +821) is the worst part of the three because the upper part of soil is composed of miscellaneous fill and plain fill with poor uniformity and mechanical properties. Nanchang belongs to the subtropical monsoon climate zone with warm temperature, sufficient rainfall and enjoys four distinct seasons. Page 2 of 10 The annual mean temperature is 17.8 ºC with a maximum high temperature of 43.2 ºC. Average annual precipitation is 1,611 mm. 5. Environmental and Social Safeguards Specialists Public Disclosure Copy Yiren Feng (EASCS) Jun Zeng (EASCS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/ Yes BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP Yes 4.12 Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No Public Disclosure Copy 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts: As a public transport oriented project, the project will bring significant net positive environmental and social impacts by promoting mass public transportation, and reducing traffic congestion, consequently reducing vehicle emissions and improving the overall quality of life in the Nanchang Metropolitan Area. It will improve accessibility for vulnerable groups including gender considerations when applicable The potential negative environmental and social impacts related to the project will occur mainly during the construction phase. These potential impacts include: disruption to urban traffic, business and utilities caused by construction sites; reduced walkability and accessibility to businesses around construction sites; noise, vibration, dust and air pollution nuisance during construction; damage to surrounding buildings and physical cultural sites; disturbance to the groundwater regime; risk of construction related accidents; and impacts from transportation and disposal of spoil material. Other impacts during operation include noise and vibration, Page 3 of 10 electromagnetic radiations near substations, impacts on land use and urban planning, and waste management from rail operation facilities. The relevant mitigation measures were incorporated into the EIA/ESMP. Public Disclosure Copy The project also has social impacts related to the need for land acquisition and involuntary resettlement. The project will require the acquisition of 746 mu of village land (including 259mu of cultivated land) which will affect 142 people from 31 families. The project would require the demolition of 83,817 m2 of existing structures owned by1043 families and affecting 4,001 people. 201 shops, 22 enterprises and organizations will be demolished as well. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The proposed project supports the development of a major line in the Nanchang urban rail network. The future development of the rail network will have significant impacts on Nanchang city, leading to a compact and transit-oriented urban development and land use change. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The project has been subject to intense analysis of alternative options including the project-no project scenarios, various options for rail line alignments, location of stations and construction methods. The older part of Nanchang is over populated. Saturation level of traffic around the main streets and intersections has reached 1.0 with an average driving speed of 11 km per hour in rush hours. Rapid development forces the city to expand to its newly developed western part. However, the land for road is very limited (8 square meters per person). The city is also fragmented by the Gan River and a number of stream and lakes. As part of the city development plan and urban transport strategy, the city has planned its rail transit development on corridors that are expected to become the busiest in the city. They will provide a high capacity mass transit solution as part of an integrated public transport network that also includes bus rapid transit system and an extensive bus Public Disclosure Copy network. Compared with an elevated rail transit, an underground metro line saves valuable land, minimizes potential traffic noise, improves the city’s esthetics and landscape and avoids many existing obstacles like flyover bridges. Seven alignments have been intensively studied for the following three sections: International Sport Center Station–QianHuDaDao Station, DiTieDaSha Station– YangMingGongYuan Station, and YongShuLu Station – DingGongLuNan Station. For each section, at least two optional alignments were compared considering engineering feasibility, socio-economic impact, environmental impact and cost benefit. Three alternative locations for QingShanLuKou Station were studied because this station is not only serving Line 2 in a very developed area, but also will be an interchange station connecting Line 2 with Line 3. On the top of that, a connection line between Line 2 and Line 3 will be built nearby so that Line 3 can access and share the depot in HongJiaoZhou. The alternative analysis result supports the T shape interchange station scheme located at the intersection of YangMingLu and QingShanLu. The T shape interchange station scheme was selected due to better ridership, easy transfer with future Line 3, and reduced environmental impact and resettlement. Two methods have also been considered for the construction of tunnels between metro stations: mining excavation and shield tunneling. Given the urban context, the need to cross the Gan River, Page 4 of 10 as well as the groundwater hydrological characteristics, the shield tunneling method was selected due to its high automation, quality of work and reduced disturbance to adjacent structures and environment for most sections, with half cut-and-cover and open cut methods used selectively for Public Disclosure Copy a few tunnels. For the construction of stations, the following three methods will be applied depending on construction conditions, social and environmental impacts at each station: open cut method, half cut-and-cover excavation method and subsurface excavation method. Adequate engineering measures have been designed to mitigate the expected impacts, including noise barriers, vibration reduction equipment, intensive greening plan, and landscape design for stations, and parking/depot site. As the result, the alignment, station location and construction method were optimized so as to reduce the land acquisition, decrease construction risks, minimize resettlement, avoid environmental and cultural sensitive sites, reduce disruption of traffic and increase the accessibility and convenience of public transport transfer, integrate with the overall public transport plan, and with less cost. Further optimization will be conducted during preliminary design and detailed design. During project design and planning stage, in order to decrease the social and economic impacts brought by the construction of this project, the Project Management Office organized several joint meetings with the design and consultation institutions to discuss about the optimization of project design and the minimization of social and economic impacts of resettlement. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The project is classified as a Category A project as per OP4.01 due to the scale of tunnel construction, waste disposal and potential environmental and social impact from construction and operation in an urban context. Environment Assessment (EA) reports were prepared by Environmental Protection Center (EPC) of Ministry of Transportation (MOT) in accordance with Public Disclosure Copy relevant national laws, regulations, and technical guidelines and standards applicable to the project, as well as the World Bank Safeguards Policies. The reports include an (i) EA Executive Summary, (ii) EIA, and (iii) Environmental and Social Management Plan (ESMP). The EA Report has been prepared, incorporating the Bank’s comments, and found to be satisfactory. The potential environmental and social impacts of the proposed project are thoroughly addressed in the EIA report, and necessary mitigation measures have been developed in the ESMP. It is concluded that these adverse environmental and social impact can be adequately avoided, minimized and mitigated with good management practice and mitigation measures as developed in EIA/ESMP. The main conclusions of impact and mitigation measures are summarized as follows: Project Feasibility Study and Design phase. The EA identified, evaluated and compared various options for alignment selection, station location selection, and construction method selection, and optimal alternatives were selected based on the avoidance of (or least adverse) social and environmental impacts, as well as other engineering technology, and financial considerations for least cost solutions. A “no project� scenario was also considered as an alternative. Adequate engineering measures have been designed to mitigate the expected impacts, including noise barriers, vibration reduction equipment, intensive greening plan, and landscape design for stations, and parking/depot site. Page 5 of 10 Construction phase. To address the potential adverse impacts as mentioned above, preventive and mitigation measures during the construction phase have been developed in the ESMP to adequately avoid, minimize and mitigate these adverse environmental and social impacts. These Public Disclosure Copy impacts will be avoided, minimized or mitigated by the following measures, which include without being limited to implementation of traffic diversion plan and utility relocation, coordination with police department, and prior notice through public media; fending of construction sites for safety; setup of temporary access roads; public consultation throughout the construction period to address public concerns and improve construction activities; proper management of spoil wastes; use of low noise equipment and construction technologies; careful scheduling of construction activities near sensitive sites; installation of temporary noise reduction facility at sensitive sites; restriction on night-time construction; and required prior public notice, as well as night-time construction permit from city Environmental Protection Bureau (EPB), for activities that need continuous construction during the night; measures for air and wastewater pollutant control, risks assessment and Environmental, Health and Safety (EHS) Shield tunneling and cover-and-cut method will be used for the tunnel and most of the stations to minimize noise and vibration impact. Operation phase. To address potential impacts during operation phase, a number of mitigation measures were adopted. Some of the critical measures follow. For land use change, Nanchang city has mature institutions and procedures to manage land development to ensure that land development induced by the rail network is in line with the urban master plan, and conducted in an orderly and legal process. For noise sensitive sites, noise barrier and ventilation shafts will be installed with low noise equipment and silencer, and ventilation shafts will be located at least 15 m from nearby residential areas. For vibration sensitive sites, vibration-reduction facilities will be installed. Measures for air quality, wastewater and solid wastes have also been formulated. Physical Cultural Resources OP/BP 4.11. The proposed line 2 rail project will pass nearby some cultural relics including the August First Uprising Cenotaph, Jiangxi Provincial Library Site, Mao Zedong Memorial Hall among others. Therefore there is a potential risk of impact from tunnel Public Disclosure Copy excavation during construction and vibration during operation. The Physical Cultural Resources (PCR) policy is therefore triggered. Adequate site survey and consultation with relevant cultural relic bureau were conducted during EA preparation to ensure all the relevant cultural relics along the rail were identified. These potential impacts were carefully addressed through mitigation measures in project design, alignment optimization and construction technologies, construction management approach including monitoring of settlement. Chance-find procedures will be included in bidding documents and contracts and will include provisions and procedures stipulated in the Cultural Property Law. A PCR Management Plan was prepared as part of the EIA/ESMP to address any possible impacts during the project implementation given the proposed works in areas of identified cultural significance. A stand-alone ESMP has been developed which details the policy basis, applicable environmental standards, environmental management organization and responsibilities, sufficient mitigation measures, capacity training plan, environmental supervision of construction, environmental monitoring program, and budget estimates of ESMP implementation. The ESMP measures were developed in consistency with IFC’s EHS Guidelines. The ESMP also include procedures and mitigation measures to deal with any project site that is not determined at the time of preparation. The ESMP measures will be incorporated into bidding documents and contracts in order to ensure Page 6 of 10 effective implementation. Environmental management responsibility will be built into the relevant divisions of the overall Public Disclosure Copy project management structure, with dedicated management staff. Dedicated environmental staff will also be assigned to Supervision Engineers and Contractors to ensure effective ESMP implementation. A training plan will be implemented prior to/and during construction for project management staff, Supervision Engineers and Contractors. A two tier monitoring program has been developed for this project: daily and regular monitoring to be carried out by contractors and construction supervision companies, and periodical compliance monitoring by professional monitoring specialists. Comprehensive environmental monitoring programs have been designed for both construction and operation phases of the project. Monitoring parameters during construction include environmental quality of air, noise, vibration, surface water and groundwater in the project affect areas. Environmental monitoring during operation phase will focus on noise, vibration, electromagnetic radiation and wastewater from the metro depot in HongJiaoZhou. Environmental monitoring report will provide key and timely information, especially on environmental impacts and mitigation, to the borrower and the Bank to evaluate the success of environmental management. The Nanchang Urban Rail Company has been established for management of the construction and operation of the proposed rail system in Nanchang. Environmental management is built into the overall management setup in the company, and the construction of line 1 has demonstrated strong and successful environmental management performance in terms of construction site management, traffic diversion, and provision of access to public, safety, dust control, spoil material disposal, information disclosure and public consultation. Training will be provided to the project staff. Following the relevant Chinese laws, regulations and World Bank OP 4.12 on Involuntary Resettlement, the Nanchang PMO has prepared a Resettlement Action Plan (RAP) to address involuntary resettlement impact caused by project construction. A Resettlement Policy Framework (RPF) was also prepared for components that might change their locations during Public Disclosure Copy project implementation. The resettlement planning work was carried out by the line agencies under the guidance of a team from Wuhan University with prior experience in resettlement planning for World Bank financed Projects. Planning work included project impact inventory surveys, social economic surveys and consultations over resettlement and livelihood rehabilitation strategies. The assessment covers all land to be permanently or temporarily acquired, buildings to be demolished, attachment to this land, affected public utilities, affected people and communities to meet the project development objective. From a resettlement point of view, the project boundaries have been defined as including transfer stations and four real estate development the URC expects to carry out in parallel to the project to support land use and mass transit integration for Line 2. The RAP and RPF, as well as the related monitoring requirements apply to any land acquisition or involuntary resettlement taking place prior to project effectiveness. The resettlement work is anticipated to start in April 2013. The following guiding principles have been applied when developing the RAP/RPF: (a) the original living standards of all affected people should be improved or at least be restored; (b) resettlement plans, sites of new houses, standards and building areas should be determined after consultation with the affected people; (c) for all affected buildings, the compensation should be calculated on the basis of current replacement cost; (d) compensation rates, location of new residential sites and areas should be formulated after consultation with the affected people; (e) all compensation funds should be paid before any demolition of house or land taking; (f) shop Page 7 of 10 owners and operators will get cash compensation as replacement cost for shops demolished and business losses will be compensated; and (f) special assistance should be provided to the vulnerable households identified during the detailed planning and implementation process. A Public Disclosure Copy mechanism has been established for grievance redress. Both internal and external monitoring is planned for resettlement implementation. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Two rounds of public consultation were conducted during EA preparation. The first round was conducted from June 2009 to August 2012 through meetings, field interviews and questionnaire surveys among project-affected people, local residential and village committees, schools and hospitals, and through a telephone hotline. The main concerns raised by the public are resettlement compensation, information disclosure, disturbance of traffic, night time construction noise etc. All these concerns were addressed in the RAP and EIA/ESMPs. The second round of public consultation was conducted in Sept-Dec 2012 after the draft EIA reports had been prepared. During the consultation, the key findings of draft EIA report and proposed mitigation measures were explained, as well as the responses to the questions raised from the first round consultation. The majority of those consulted expressed strong support for the project. Information about the project was disclosed following both the domestic and Bank requirements. The availability of the EA reports, and how to access to them, was announced in a major local newspaper, Nanchang Daily, on February 9, 2013. The EA Executive Summary was disclosed on February 5, 2013 in the World Bank’s Infoshop. The EIA report and ESMP were disclosed in Infoshop on February 7, 2013. The EA reports were disclosed at the PMO and on the website of the URC, on February 8, 2013. A final EIA and ESMP were disclosed on April 9, 2013 in Infoshop and on April 19, 2013 at the URC. Public Disclosure Copy The RAP and RPF were disclosed to local people via Nanchang Daily and other local newspapers as well as on internet on January 30, 2013 and the English version of the documents were disclosed in Infoshop on February 5, 2013. A final RAP and RPF were disclosed on April 3, 2013 in Infoshop and April 17, 2013 at the URC. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 05-Feb-2013 Date of submission to InfoShop 07-Feb-2013 For category A projects, date of distributing the Executive 11-Feb-2013 Summary of the EA to the Executive Directors "In country" Disclosure China 09-Feb-2013 Comments: Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 20-Jan-2013 Date of submission to InfoShop 05-Feb-2013 Page 8 of 10 "In country" Disclosure China 30-Jan-2013 Comments: Public Disclosure Copy If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property? Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? Public Disclosure Copy If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Page 9 of 10 Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in Public Disclosure Copy the project legal documents? III. APPROVALS Task Team Leader: Gerald Paul Ollivier Approved By Regional Safeguards Name: Peter Leonard (RSA) Date: 16-May-2013 Advisor: Sector Manager: Name: Mark R. Lundell (SM) Date: 18-May-2013 Public Disclosure Copy Page 10 of 10