INTEGRATED SAFEGUARDS DATA SHEET IMPLEMENTATION STAGE . Report No.: 136343 . Date ISDS Prepared/Updated: 10-Apr-2019 I. BASIC INFORMATION 1. Basic Project Data Country: China Project ID: P152959 Project Name: Reduction and Phaseout of PFOS in Priority Sectors (P152959) Task Team Leader(s): Laurent Granier, Solvita Klapare Board Date: April 7, 2017 Managing Unit: GENE1 GEF Focal Area: Persistent Organic Pollutants Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 No (Rapid Response to Crises and Emergencies)? Project Financing Data (in USD Million) Total Project Cost: 67.22 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount Borrower 42.97 Global Environment Facility (GEF) 24.25 Total 67.22 Environmental Category: A - Full Assessment Is this a Repeater project? No Is this a Transferred No project? . . 2. Project Development Objective(s) The project development objective is to reduce PFOS in selected sectors and enterprises in China in a sustainable manner. . 3. Project Description China ratified the Stockholm Convention on Persistent Organic Pollutants (POPs) in 2004, a global treaty counting 180 Parties and addressing an increasing number of chemical substances listed as POPs (currently 26), including perfluorooctane sulfonic acid (PFOS), its salts and perfluorooctane sulfonyl fluoride (PFOSF). The Project will consist of three components and project management: the first component addresses PFOS/PFOSF production reduction; the second component addresses PFOS use reduction in chromium mist suppressant for metal plating, in pesticide formulations for invasive pest control, and for PFOS- based firefighting foam; and the third, technical assistance, component will support capacity building and policy development to ensure sustainable phase-out of PFOS in the targeted sectors. Policy development activities will be extended to cover PFOS reduction in the enhanced oil recovery application. Component 1: PFOS Production Reduction The Project will support production phase-out and reduction for primary PFOSF producers and at secondary PFOS producers (approximately 14 companies). Activities to be financed include: closure; conversion of production to non-POPs like chemicals; and adoption of best environmental practices at facilities that will continue production of PFOS and PFOSF for acceptable uses under the Stockholm Convention. Conversion of production facilities: This component will finance conversion of PFOSF production facilities and offer incentives to support downstream PFOS manufacturers in switching to new non PFOS-based products. The project would not finance any production of chemicals known to possess persistence, bio-accumulative and toxic (PBT) characteristics. Eligible incremental expenditures would include: (a) development of non-PFOS products; (b) costs related to registration of new products; (c) equipment and technology transfer costs; (d) installation of equipment; (e) training; (f) trial production; (g) incremental costs of new raw materials, utilities, waste management; and (h) costs of disposal of contaminated equipment previously used for producing or storing PFOS. Plant or production line closure: GEF incremental support would be extended to enterprises that might decide to close down their production facility altogether. GEF resources will be used to support management of environmental liabilities from such closure. Eligible incremental expenditure would include: (a) dismantling costs; (b) disposal costs of contaminated equipment and materials; and (c) consulting services to develop site risk assessment, management and monitoring plans. Remediation beyond disposal of contaminated equipment is expected to be financed by other sources outside of the Project. Promotion of cleaner production: In line with BAT/BEP requirements under the Stockholm Convention, the project would promote introduction of cleaner production techniques and practices so as to limit the risks of environmental releases or to worker's health and safety resulting from PFOS production. Eligible expenditures include: (a) consulting services to develop CP audits; (b) overseeing implementation of CP measures; (c) technology upgrading; and (d) training. The project would also promote phase-out at downstream producers through support to a “MEP PFOS stewardship program�, including strengthening of label specification. Component 2: Reduction of PFOS Use Three priority sectors are addressed in this component: chromium mist suppressants in the metal plating sector, firefighting foam sector, and pesticides for control of red imported fire ant (RIFA). The fourth large sector in terms of consumption, oil production, is addressed through TA only under component 3. Chrome mist suppressant in metal plating: The Project will finance demonstration activities to showcase non-PFOS alternatives and closed-loop systems, with equivalent or improved efficacy in terms of protection of human health and safety. The demonstration activities include installations of approx. two closed-loop systems for different chrome-plated product lines and introduction of non-PFOS alternatives in at least 20 companies using chromium mist suppressant for manufacturing various products in up to three industrial parks. The industrial parks will be selected during the project implementation. Criteria for selection of these industrial parks would include the number of chrome plating enterprises, environmental management capacity of the industrial parks, and willingness to showcase demonstration activities to similar industry in other industrial parks. The project will finance costs in relation to acquiring of the following: (a) upgrade of facilities to closed- loop systems; (b) chrome plating baths replacement; (c) new chromium mist suppressant; (d) other equipment, testing device, and control systems related to the use of new alternatives; (e) ventilation and safety equipment; (f) site preparation for installation of new equipment; (g) replacing Cr(VI) with Cr(III) which will eliminate the use of chromium mist suppressant altogether; and (h) advanced treatment facilities for up to three industrial parks for removing perfluorinated compounds (PFCs) from water discharge from chrome plating industry. Firefighting foam: The project will finance development and production of non-PFOS firefighting foam at 3-5 firefighting foam manufacturers. The selection criteria of firefighting foam manufacturers would include: (a) research and development capacity; (b) relevant experience with firefighting chemicals; (c) large network of firefighting foam clients; (d) good environmental performance record; (e) in-house capacity to develop non-PFOS surfactants or technical cooperation with reputable surfactant manufacturers; and (f) cost effective proposals. The following costs will be covered by the Project: (a) research and development of new non-PFOS based firefighting foam; (b) environmental and health impact evaluation of new alternatives; (c) new equipment for manufacturing non-PFOS based firefighting foam; (d) site preparation for installing new equipment; (e) tanks and storage facilities; (f) testing efficacy of new products; and (g) registration of new surfactants and firefighting foam. In addition, financing costs of new non-PFOS firefighting foam needed for training at 3 training facilities of the public security ministry could be supported, as well as costs of firefighting equipment retrofit or procurement of new equipment, together with facilities for treatment of wastewater discharge. Pest control: The project will finance procurement of pesticides (9 tons total: 6 tons of indoxacarb based baits, 3 tons of cypermethrin based powder, and a small amount of hydramethylnon) for demonstration of a two-phase treatment method using bait and powder to control red fire ants, carried out under component 3. Component 3: Policy and Technical Assistance This component will finance technical assistance activities required to strengthen regulatory and policy framework, standards, and capacity building. These activities are essential for ensuring sustainability of PFOS phase-out in both production and consumption sectors. TA activities include: Standards and Regulations: The Project will carry out activities to develop industry standards, good practices, and regulations to support introduction of non-PFOS alternatives. Supported activities would include: (a) labeling scheme to ensure that commercially available chromium mist suppressant will have to be properly labeled; (b) development of technical specifications for chromium mist suppressants, including efficacy in protecting human health and safety; (c) standards defining PFOS waste, and related best practices for disposal; specification of discharge of wastewater containing PFOS for electroplating industry in Guangdong province; (d) development of guidelines for cleaner production for organofluorine manufacturing industry; (e) revision of cleaner production audit indicator system for electroplating industry to include PFOS in Guangdong Province; (f) technical report on efficacy of non- PFOS based pesticides for controlling red imported fire ant; and (g) development of guidelines for green procurement for the oil sector. Screening of non-PFOS Alternatives: To ascertain that new non-PFOS alternatives to be introduced in China should not have PBT characteristics, a PBT screening system for new chemicals will be established. Supported activities include: (a) guidelines for registration of new chemicals including reporting requirement on PBT characteristics; (b) development of standard testing protocol for determining PBT characteristic of organofluorine chemicals; and (c) screening reports on PBT characteristics of at least 10 non-PFOS chromium mist suppressants. Technical Studies: A series of studies will be carried out under the project to enhance understanding of import/export control of PFOS, and of PFOS use as CMS in electroplating factories in Guangdong province. To guide the chrome plating industry in the future as part of the efforts to sustain achievement of this project, the Project will finance the testing of mist suppression performance of alternatives and develop a list of acceptable chromium mist suppressants. A preliminary study will also be conducted on health impacts of PFOS in China as a first step to scoping and better understanding the issue. Technical Assistance to Eliminate the Use of PFOS in Firefighting: The project will support testing the safety and efficacy of alternative non-PFOS firefighting foams and products; devising technical way forward for substitution of PFOS in the firefighting sector; revising relevant standards as needed; capacity development to detect PFOS substances in foam extinguishing agents; and strengthening the tracking and control of PFOS containing firefighting agents. Since a large quantity of PFOS firefighting foam is used for training, adopting new non-PFOS alternative foam could lead to permanent reduction of a significant quantity of PFOS. The project would therefore finance revision of firefighting protocols and training manuals for effective use of new non-PFOS firefighting foam without compromising safety and health of firefighting cadets. Technical Assistance to Eliminate the Use of PFOS for control of RIFA: Demonstration of alternative pest management techniques and practices will be conducted for four years in 5 provinces, Fujian, Guangdong, Guangxi, Guizhou and Hainan. The project will cover costs related to the ‘training of trainers’ program that will involve ‘training schools’ in the 5 demonstration provinc es and up to additional 5 provinces. Participants will include county, municipal and provincial level practitioners. PFOS Registration and Reporting System: The project will strengthen capacity of Ministry of Environment Protection (MEP) and local Environmental Protection Bureaus (EPBs) to enforce regulations and monitoring requirements for hazardous substances. A tracking system will be developed to support registration of producers of PFOSF, secondary PFOS based product manufacturers, and users of PFOS products in firefighting foam industry. The system will assist China to monitor production and supply of PFOS materials from sources to end users. Technical capacity of local EPBs will be strengthened to enable them to carry out or supervise factory audits to prevent any diversion of PFOSF to banned applications. Efforts would mainly focus on strengthening capacity of local EPBs in Fujian and Hubei to control the PFOS supply chain. Component 4: Project Management Component 4 will finance: (i) costs of operations of three project management offices (PMOs) at FECO, Guangdong EPB and Hubei EPB, as well as (ii) Monitoring and Evaluation. Eligible costs include expenditures incurred by the PMOs in carrying out the Project. 4. Project location and salient physical characteristics relevant to the safeguard analysis Most demonstration activities for PFOSF producers and manufacturers of PFOS-containing products (including the pilot factory under consideration prior to appraisal) are located in Hubei and Fujian Province, central south of China, on fairly flat terrain with temperate-subtropical climate and annual precipitation around 1200 mm. The potential pilots for PFOS application in metal plating are located in Guangdong Province, and demonstration areas for control of red imported fire ants are distributed in Guangdong, Guangxi, Guizhou, Fujian, and Hainan Province, all in south China with subtropical to tropical climate and various topography. . 5. Environmental and Social Safeguards Specialists on the Team Kai Shang (GSU02) Yongli Wang (GEN2A) . 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes The project will involve demonstration activities and pilots to reduce the production and the use of perfluorooctane sulfonic acid (PFOS) and related chemicals, a family of toxic chemicals that are extremely persistent and likely to be carcinogenic to humans. The industries to be targeted by the project, i.e., chemical industry, metal plating, pest management and fire protection are heavily polluting and energy/resource intensive. Given the highly complex environmental impacts and potentially significant risks, a category A was assigned as per the WB safeguard policy. Since most beneficiaries for demonstration can only be determined during implementation, a framework approach was adopted according to the Bank’s safeguard requirement. An Environment Management Framework (EMF) has been developed under the hands-on instruction of the Bank team. It is designed to guide the screening and selection process, the evaluation of environmental and social risks and the management of these risks for each sector involved under various scenarios. Major impacts and risks, measures and public consultation are described below under II A. Social risks and impacts may be livelihoods loss or land acquisition following enterprise production line closure or relocation, or impacts on project enterprise employees’ job security, and on local residents in project sites. For example, possible relocation of a few PFOS enterprises may cause a small number of job changes or job losses. Chinese labor laws and regulations will be followed to ensure appropriate compensation and livelihood restoration for affected workers. To address possible closure or conversion of the existing facilities, social impacts on livelihoods and employees’ job security, social management instruments have been included in the ESMF, which was prepared prior to project Appraisal and cleared by the World Bank. In all cases of job loss, an employee redundancy compensation action plan (ERCAP) will be prepared by the project participating enterprise and submitted to the World Bank for prior review. During the project implementation, it is identified Hubei Xiaochang Xiangshun Chemical Industry Co., Ltd. (“Xiangshun�) is the only participating enterprise that will result in labor retrenchment because of factory shut- down. There are four employees working in Xiangshun, who are expected to be dismissed in late April 2019. An ERCAP was prepared following the ESMF by Xiangshun, which assesses the impacts, proposes compensation measures, and establishes implementation procedure, public consultation and requirement, grievance redress mechanism as well as external monitoring and reporting. Xiangshun ERCAP was disclosed on January 21, 2019 through local website. The final ERCAP will be disclosed by Xiangshun and World Bank. Natural Habitats OP/BP 4.04 No The project will take place mostly within existing facilities, industrial parks or farmland. If relocation to new facilities were to be required, it is expected that new location will be in the urban or suburban areas where there is basic infrastructure to support industry. Therefore, it does not affect any natural habitats. Forests OP/BP 4.36 No Not applicable. Pest Management OP 4.09 Yes The project will support the procurement and use of alternative pest control agents to replace PFOS-based insecticides that have been the major means to control red imported fire ant in China. A Pest Management Plan (PMP) has been developed and annexed to the ESMF. The PMP highlights the principle of integrated pest management embodied by this OP and focuses on non-PFOS based insecticides, their safe storage, transportation and application. It includes a monitoring and training program for farmers and agricultural technicians. Physical Cultural Resources OP/BP 4.11 No The project will take place within existing facilities, industrial parks or farmland with no physical cultural resource as defined by this OP foreseen for the existing and future pilot activities. Indigenous Peoples OP/BP 4.10 No The targeted industries are located in urban areas where it is unlikely there is any presence of indigenous peoples by the criteria of the Bank IP term. In case enterprises have to relocate to new areas, they are expected to move to industrial parks within urban or semi-urban areas since the industry needs basic infrastructure support. Such areas are unlikely to have any issues related to indigenous people either. Involuntary Resettlement OP/BP 4.12 Yes Most of the project activities will be carried out within existing facilities of project enterprises with no need for additional land. This policy might be triggered however as some enterprises that are currently located in residential areas may want to produce non-PFOS alternatives, and in some provinces establishment of new chemical processes in facilities located in residential areas will not be allowed. Therefore, they would have to move to a new location which is usually an existing industrial park. Even if it was not in an industrial park, the need for land in terms of project company relocation or expansion would be very limited. A resettlement policy framework as part of the ESMF has been prepared to address potential emerging land demands and involuntary resettlement associated with job changes or losses during project implementation. It sets that local Chinese labor laws and regulations and Bank safeguards policy requirements will be followed to ensure appropriate compensation and livelihood restoration for any affected people under the project. In case of 20 or more employees to be laid off in one time by project enterprises, according to the Chinese government labor regulation, a full employee resettlement plan should be prepared by the enterprise and reported to the local labor authorities. The plan should be submitted to the Bank team for prior review before actual layoff of staff of the related enterprise. Those laying off less than 20 employees should follow the Chinese government labor regulations, and the employee resettlement can be covered in the environment assessment report under Op 4.01, which will also be subject to prior review by FECO and the Bank task team. The ESMF sets measures and procedures to be followed so as to mitigate social negative impacts. The ESMF states clearly the documents to be prepared if there is any land acquisition or resettlement identified prior to appraisal and during implementation: Resettlement Action Plans (RAP), or due diligence review of recent land acquired as new location of the project beneficiary enterprise, or employee resettlement plan in the case of worker’s redundancy, or other social safeguards mitigating measures as appropriate will be prepared and implemented according to the Bank safeguards policy as and when required. A professional consultant on social safeguards and broad social development has been hired to prepare the ESMF social part. The ESMF is deemed satisfactory by the Bank team and has been disclosed before appraisal. If any social management instrument is to be prepared during project implementation, it will be also disclosed and consulted by fully following the Bank and Chinese government requirements. Currently, there is one participating enterprise (Hengxin) that will involve land acquisition at its new site. Hengxin, one of the largest PFOSF producers in China, was established in 2004 in Yingcheng County of Hubei Province. The factory’s current site occupies an area of about 1.3 ha, which will be converted into a logistic center by Hengxin. Hengxin will phase out PFOSF production by December 2019 and upgrade its capacity for producing other products at a new site in Saifu Industrial Park (~10 km away from current location). All the current 60 affected employees in Hengxin would be reassigned within the enterprise because production capacity at the new site will be enlarged and more workers will be required. At the time of updating this ISDS, Hengxin is still in the process of selecting the relocation site and the new site is yet known. A RAP will be developed in accordance with the ESMF and submitted to the Bank for clearance before the land can be acquired and sub- grant agreement can be signed between Hengxin, FECO and PPMO. The draft RAP is subject to at least one round of public consultation and disclosure organized by Hengxin and PPMO. Safety of Dams OP/BP 4.37 No Not applicable. Projects on International Waterways OP/BP No Not applicable. 7.50 Projects in Disputed Areas OP/BP 7.60 No Not applicable. . II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Environment The project has overall positive environmental impacts as it supports phasing out or reducing PFOS and replacing with less toxic and persistent chemicals in China. Since demonstration activities mainly involve converting to other products, retrofitting or closing down within an existing factory, impacts during construction in most scenarios are foreseen to be confined within the facility. However, converting and retrofitting often requires dismantling part of the old equipment, reconfiguring pipeline system and/or factory space. Handling and disposal of spoil and scraps, some of which can be hazardous, could pose negative impacts on the environment and workers’ health both on-site and off-site. This needs to be carefully assessed, planned and managed for such enterprises once selected during implementation. Due to limited resources, the project will not support site remediation, but only the site assessment of the closed facilities. Impacts during operation vary considerably due to the diverse set of sectors and sub-projects involved. The EMF describes succinctly the sectors, their main processes and technologies, major pollution and environmental risks associated. Typical for chemical intensive industries, these include air emissions of acidic and alkali chemicals as well as toxic fugitive emissions inside and outside workshops, and flue gas from boilers, water effluent high in non-biodegradable substances or heavy metals, inorganic sludge and solid wastes including hazardous wastes, and their final treatment and disposal off-site. For application in metal plating industry, occupational health impacts and safety risks could occur with the improper use of substitutes for PFOS-containing chromium mist suppressants (CMS), since the latter has been effective in controlling harmful volatile emissions from metal plating solutions. For application of substitute pesticides in agriculture, improper use and storage could lead to safety risks and health hazard for farmers/users as well as soil and water contamination. For application of foam substitute in firefighting, chemicals in foam could be washed away into the surrounding environment, causing contamination of water and soil. Social The project will have positive social benefits as it will reduce the negative health impacts associated with PFOS production by introducing non-PFOS alternatives. It will support closure of redundant facilities, including support for site closure associated with previous production of PFOS. Overall social negative impacts and risks foreseeable will be very limited. It is expected that most of the project activities will be carried out within existing facilities, which are on existing public land in urban areas. The project in general has no need for additional land acquisition. However, some of the future project enterprises might also need partial or full production line closure or relocation causing workers to be laid off, although previous experience shows that most workers can be reemployed within the same enterprise in the case of partial closure. Some enterprises that are currently located in residential areas may want to produce non-PFOS alternatives. However, in some provinces establishment of new chemical processes in facilities located in residential areas will not be allowed. Therefore, they would have to move to a new location which is usually expected to be an existing industrial park. Such relocation may cause some employees to lose job if they choose not to move to the new location with the enterprise. The project has entered the implementation stage. At the time of updating this ISDS, there are six enterprises that have determined to participate in the project for closure or conversion of PFOS production. It was identified shut-down of Xiangshun will result in worker lay-off and relocation of Hengxin will acquire about 2 ha land for the new site. Since the new site for Hengxin is unknown to date, the resettlement impact will be further assessed, and a RAP will be prepared following the ESMF and submitted to the World Bank for clearance before starting land acquisition and resettlement. Relocation of Hengxin will not cause labor retrenchment because production capacity at the new site will be enlarged and more workers will be required. Shut-down of Xiangshun will result in dismissing all four workers. As of now, three of the four workers have reached retirement age and started to receive monthly paid social pensions and another worker will reach retirement age in July 2019. In addition to one-time lump-sum cash compensation following China’s labor law and meaningful consultation with the affected workers, Xiangshun will cover the social pension premium for the worker who does not reach retirement. In consideration of the project context, the significance of labor retrenchment impact is considered low risk and is easily mitigated in a predicable manner. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Environment The pollutions and risks during operation as described above can potentially have long-term impacts if handled improperly, especially off-site disposal of chemicals and wastes. Most hazardous wastes come from residuals of production processes and sludge of wastewater treatment in facilities or industrial parks. The spent chemicals and fire-fighting foams constitute another source of hazardous wastes. Improper disposal could contaminate surface water, ground water and soil, enter into ecosystem with bio-accumulative effects in species and threaten human health eventually. Social In the case of closure or relocation of project enterprises, some employees of the enterprises may have difficulties in reemployment or restoring livelihoods. But the scale of such negative impacts can be minimized as much as possible. Up to now, it is identified shut-down of Xiangshun will result in worker retrenchment (all four current workers) and relocation of Hengxin will acquire about 2 ha land for the new site. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable since it is a framework based project for which alternative comparison becomes possible only during implementation. The only pilot identified by appraisal is a PFOS producer willing to convert to production of less toxic products. It does not have feasibility study yet but its preliminary investigation indicates a very limited choice of products it can convert to in a practical way. Not applicable for the social part, either. 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. Environment The project will be implemented by a central PMO (FECO) and two provincial PMOs (PPMOs). FECO has over 30 years of experience with international financing institutions, including the WB and GEF. It is familiar with the WB safeguard requirements after it has successfully implemented similar projects, such as the Phase-out of HCFCs Project and GEF Contaminated Site Management Project in recent years, most of them category A. Hubei and Guangdong PPMOs are both under their provincial Environmental Protection Bureau (EPB), thus experienced in managing environmental impacts though with less direct experience of the WB safeguard policies. FECO’s staff in charge of safeguards has been stable, highly dedicated and supportive throughout the safeguard preparation. The two provincial PMOs have designated staff for safeguards to ensure the EMF implementation. Capacity building in environmental safeguard has been provided by the Bank team during preparation and will be continued throughout the project cycle. The EMF prescribes that all environmental safeguard documents required should be submitted to the PMOs for review in order to meet both the domestic and the WB requirements. The first subproject of each sector and all category A sub-projects should also be submitted to the WB for review. The EMF also sets up supervision arrangements and specifies responsibilities of various stakeholders during implementation. The EMF includes in its annexes the Terms of Reference for all safeguard instruments to be used in this project, i.e. EA, the Environmental Management Plan (EMP), Environmental Audit and Environmental Site Assessment. An Environmental Audit was done for Hengxin Chemical Co., a potential pilot for enterprise converting to non-PFOSF production. An EIA will be prepared as soon as project support to Hengxin is confirmed and subproject details are identified. Social To address the above social risks and impacts, the client-FECO has prepared a social safeguards instrument – ESMF, which includes an Employee Retrenchment Compensation Framework and a Resettlement Policy Framework (RPF). The ESMF states that local Chinese labor laws and regulations, and World Bank safeguards policies should be followed to ensure appropriate compensation and livelihood restoration for affected people. In case of 20 or more employees are laid off in one time by a project enterprise, according to the Chinese government labor regulation, a full ERCAP should be prepared by the enterprise and reported to the local labor authorities. The plan should be submitted to the Bank team for prior review before actual layoff of staff of the related enterprise. Those laying off less than 20 employees should follow the Chinese government labor regulations, and the employee resettlement plan which will also be subject to prior review by FECO and the Bank task team can be covered in the environment assessment report under OP 4.01. A social screening will be done for every subproject to assess social impacts and risks. A comprehensive social assessment will be done for every subproject which has negative social impacts and risks. A social assessment report will be done as required accordingly through hiring experienced professionals. Up to date, Xiangshun is the only participating enterprise that will result in labor retrenchment because of factory shut-down. As of now, there are four employees working in Xiangshun, who are expected to be dismissed in late April 2019. An ERCAP was prepared following the ESMF by Xiangshun, to assess the impacts and develop compensation measures, and propose implementation procedure, public consultation and requirement, grievance redress mechanism as well as external monitoring and reporting. Xiangshun ERCAP was disclosed on January 21, 2019 through local website. All the four affected workers endorsed the compensation arrangement by Xiangshun. The final ERCAP will be disclosed by Xiangshun and World Bank. A resettlement policy framework (RPF) has also been included in the ESMF to address future possible land acquisition and resettlement, although all the known project activities will be on existing public land and do not need additional acquisition. The RPF describes the overall legal framework, planning principles, procedures, compensation and rehabilitation approach, consultation and participation requirements, grievance redress mechanisms, organization and monitoring arrangements. The national level PMO-FECO has extensive experience in preparing and implementing World Bank financed projects, including GEF projects previously, although provincial PMOs and project enterprises may have little experience in implementing World Bank projects. The Bank team and external social consulting team will provide ongoing training for PMOs and project enterprises. FECO has and will continue to provide training and guidance for local PMOs. It has also been agreed to hire an external social consultant team for technical support in dealing with social aspects of the project. Each PMO has delegated a staff to take charge of social safeguards management. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Environment Two rounds of local disclosure of the EMF have been conducted as per the Bank requirement for category A project. The first round was conducted during March 2016 at the official websites of the central PMO and several sector associations. The second round was during July 2016 after the complete draft EMF with all its annexes was ready. After each round of disclosure, public consultations have been carried out through meetings and talks with representatives of interested enterprises, branch associations of sectors involved, government agencies concerned at central and provincial level, local PMOs, as well as academia and experts. For Hengxin Company, the only pilot identified prior to appraisal, its environmental audit report has been disclosed locally in the city two rounds in June and August 2016 respectively, followed by consultation with local people to be potentially affected. The concerns and suggestions from all public consultations have been incorporated in the finalization of the EMF and the environmental audit report. Social The RPF in the environmental and social management framework, in both Chinese and English, was submitted to the Bank on July 30, 2016 and was deemed satisfactory to the Bank. The document has been locally disclosed through the internet on August 30, 2016 and the Bank InfoShop on September 7, 2016. The Xiangshun ERCAP is deemed satisfactory to the World Bank, which has been disclosed on January 21, 2019 through local internet. The final ERCAP will be disclosed by Xiangshun and on World Bank website as well. Grievance Redress. A mechanism has been established for grievance redress. The Task Team highly recognized FECO’s efforts to put in place a comprehensive grievance redress mechanism extending from FECO, PPMO and participating enterprises. Project level GRMs have now been posted on the websites of FECO and the two PPMOs. During project implementation, all grievances (if any) will be properly addressed and documented in alignment with GRM and reported to the Bank. Grievances will be filed in writing. Starting at enterprise level, the grievances can be elevated to PPMO or FECO if affected people are not satisfied with the resolution at the lower level. The affected people could also file their cases in court if they are not satisfied with the resolution by the project authority. All grievances and their resolution will be recorded and be feedbacked to the affected people on a timely basis. . B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 30-Jul-2016 Date of submission to InfoShop 07-Sep-2016 For category A projects, date of distributing the Executive Summary of the 18-Jan-2017 EA to the Executive Directors "In country" Disclosure China 29-Jul-2016 Comments: Two rounds of local disclosure of the ESMF have been conducted per the Bank requirement for category A project. The first round was conducted during March 2016 at the official websites of the central PMO and several sector associations. The second round took place in July 2016 after the complete draft ESMF with all its annexes was finalized. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 30-Jul-2016 Date of submission to InfoShop 07-Sep-2016 "In country" Disclosure China 29-Jul-2016 Comments: Two rounds of local disclosure of the ESMF have been conducted per the Bank requirement for category A project. The first round was conducted during March 2016 at the official websites of the central PMO and several sector associations. The second round took place in July 2016 after the complete draft ESMF with all its annexes was finalized. Pest Management Plan Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 30-Jul-2016 Date of submission to InfoShop 07-Sep-2016 "In country" Disclosure China 29-Jul-2016 Comments: As part of the ESMF. 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) report? Yes [ X ] No [ ] NA [ ] If yes, then did the Regional Environment Unit or Practice Manager Yes [ X ] No [ ] NA [ ] (PM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes [ X ] No [ ] NA [ ] credit/loan? OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes [ X ] No [ ] NA [ ] Is a separate PMP required? Yes [ X ] No [ ] NA [ ] If yes, has the PMP been reviewed and approved by a safeguards Yes [ X ] No [ ] NA [ ] specialist or PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes [ X ] No [ ] NA [ ] framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ X ] No [ ] NA [ ] Practice Manager review the plan? Is physical displacement/relocation expected? Yes [ ] No [ ] TBD [ X ] Is economic displacement expected? (loss of assets or access to Yes [ X ] No [ ] TBD [ ] assets that leads to loss of income sources or other means of livelihoods) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Yes [ X ] No [ ] NA [ ] Bank's Infoshop? Have relevant documents been disclosed in-country in a public place Yes [ X ] No [ ] NA [ ] 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 [ X ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the Yes [ X ] No [ ] NA [ ] project cost? Does the Monitoring and Evaluation system of the project include Yes [ X ] No [ ] NA [ ] the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with Yes [ X ] No [ ] NA [ ] the borrower and the same been adequately reflected in the project legal documents? . . III. APPROVALS . Task Team Leader(s): Name: Laurent Granier, Solvita Klapare Approved By: Safeguards Advisor: Name: Peter Leonard Date: April 10, 2019 Practice Manager/Manager: Name: Ann Jeannette Glauber Date: April 23, 2019