China - CN-PCF Jincheng Coal Bed Methane Project

Integrated Safeguards Data Sheet (Initial) Report No: AC761 Section I - Basic Information Date ISDS Prepared/Updated: 2004-04-06 A. Basic Project Data (from PDS) I.A.1. Project Statistics Country: CHINA Project ID: P087291 Project: CN-PCF Jincheng Coal Bed Methane Project Task Team Leader: Jianping Zhao Authorized to Appraise Date: January 6, 2004 IBRD Amount ($m): Bank Approval: June 30, 2004 IDA Amount ($m): Global Supplemental Amount ($m): Prototype Carbon Fund ($m): 10.00 Managing Unit: EASEG Sector: Power (100%) Lending Instrument: Specific Investment Loan (SIL) Theme: Climate change (P) Status: Lending I.A.2. Project Objectives (From PDS): The main objective of the project is to reduce China's greenhouse gas emissions through effective and efficient Coal Mine Methane (CMM) recovery and utilization by applying the latest technologies in CMM drainage and CMM-based power generation. The second objective is to serve as an example as how GHG emissions reduction credits can be obtained and traded with regard to a CMM emissions reduction project under the clean development mechanism (CDM) of the Kyoto Protocol or similar arrangements. I.A.3. Project Description (From PDS): The project would consist of the following four components: (i) improved underground CMM drainage systems through directional drilling of long in-seam boreholes and installation of CMM gathering and drainage facilities; (ii) the construction of a 120 MW power plant composing of about 60 internal combustion engines and associated CMM storage facilities; (iii) a double circuits 6 km long 110 kV transmission lines to connect the power plant to the existing power grid; and (iv) a capacity building program and consulting services for project implementation. Implementing Agency The implementing agency of the project is Jincheng Anthracite Mining Group Co. Ltd (JMC). JMC is a corporatized entity fully owned by the Shanxi Provincial Government. It has a large operation in developing coal mines, sale of coal, power generation and other downstream coal businesses. It is also a holding company with five majority-owned subsidiaries and two wholly owned subsidiaries. JMC will establish an independent subsidiary for the construction and operation of the CMM-fired power plant. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.)  2 ISDS The Shihe mine and the proposed power plant are located in Yinzhuang Village, Jiafeng Town, Qinshui County, Jincheng Municipality of Shanxi province. The project area is mainly hilly dry-land. It is about 30 km away from the city of Jincheng, 500 km from Taiyuan, capital of Shanxi province, and 230 km from Zhengzhou, capital of Henan province. The Jincheng area is dominated by heavy industries where environmental quality has deteriorated over the past several years. Currently, the Jincheng municipal government is implementing various environmental improvement activities with the objective to receive the Government's designation of `environmental model city' by 2005. The proposed project will not produce any significant environmental impacts. Only some minor ones are anticipated during the construction and operational phase such noise, dust, erosion, air emissions from the proposed power plant. There are 3 villages scattering from 700 - 1000 m away from the plant site and there is no sensitive protected area or cultural property within 5 km. The construction of the CMM-fired power plant and associated transmission lines will not involve any house demolishing or relocation of households. However, they will involve limited amount of land acquisition. According to the survey, a total of 5.38 ha land areas will be required, including 5.32 ha for the power plant site and 0.06 ha for the transmission line. Most of them are dry-land. For the power plant site, the land acquisition will affect 23 households and 85 persons in three villages. For the construction of 110kV transmission line, no land acquisition is needed for the existing substation, and only 0.06 ha land areas will be required for the construction of 18 towers B. Check Environmental Classification: A (Full Assessment) Comments: C. Safeguard Policies Triggered (from PDS) (click on for a detailed desciption or click on the policy number for a brief description) Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes No TBD Natural Habitats (OP 4.04, BP 4.04, GP 4.04) Yes No TBD Forestry (OP 4.36, GP 4.36) Yes No TBD Pest Management (OP 4.09) Yes No TBD Cultural Property (OPN 11.03) Yes No TBD Indigenous Peoples (OD 4.20) Yes No TBD Involuntary Resettlement (OP/BP 4.12) Yes No TBD Safety of Dams (OP 4.37, BP 4.37) Yes No TBD Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) Yes No TBD Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* Yes No TBD Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.1a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe  3 ISDS any potential large scale, significant and/or irreversible impacts. II.D.1b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. II.D.1c Describe any potential long term impacts due to anticipated future activities in the project area. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) II.D.3. Describe arrangement for the borrower to address safeguard issues Jincheng Anthracite Mining Group Co. Ltd (JMC) is the implementing agency and responsible for safeguard policies. JMC has basic capacity to implement the safeguard policies, as it has experience in conducting EA for other infrastructure projects such as coal mines and small power plants following national regulations.. However, its experience of Bank's safeguards policies is limited although EA regulations in China is fairly close to that of the Bank. Since the project is part of the proposed project to be financed by the Asian Development Bank(ADB), during the preparation of the project by ADB, external environmental and social consultants were hired to assist JMC to implement the safeguard polices according to ADB/WB's policies. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. E. Safeguards Classification (select in SAP). Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] S1.