China - Micro and Small Enterprise Finance Project : environmental assessment

Page 1 Environmental Assessment Framework MSE Finance Project China Development Bank & World Bank August 1, 2006 E1498 Page 2 2 ABREVIATIONS CDB China Development Bank EA Environmental Assessment EIA Environmental Impacts Assessment EMG Environmental Management Group CEMG Environmental Management Group at CDB PEMG Environmental Management Group at a PFI EPB Environmental Protection Bureau FI Financial Intermediary CC Credit Committee MSE Micro and Small Enterprises PFI Participating Financial Institution SEPA State Environmental Protection Administration Page 3 3 Table of Contents 1 INTRODUCTION..........................................................................................................................4 2 APPLICABLE LAWS, REGULATIONS AND ADMINISTRATIVE ORDERS ....................5 2.1 C HINESE L AWS AND R EGULATIONS ......................................................................................................6 2.1.1 Environmental Assessment Law...................................................................................................6 2.1.2 Environmental Classification for Construction Projects............................................................6 2.1.3 Other Regulations.........................................................................................................................7 2.2 W ORLD B ANK P OLICIES ........................................................................................................................7 3 ENVIRONMENTAL SCREENING OF SUBPROJECTS.........................................................7 3.1 C HARACTERISTICS OF THE MSE FINANCE PROJECT ..............................................................................7 3.2 E NVIRONMENTAL S CREENING OF S UBPROJECTS ...................................................................................7 4 ENVIRONMENTAL ASSESSMENT INSTITUTIONS AND RESPONSIBILITIES.............8 4.1 P ROJECT M ANAGEMENT S YSTEM .........................................................................................................8 4.2 E NVIRONMENTAL M ANAGEMENT S YSTEM ...........................................................................................8 4.3 T ASKS AND R ESPONSIBILITIES ..............................................................................................................9 4.3.1 CEMG.....................................................................................................................................9 4.3.2 PEMG or environmental manager........................................................................................10 5 PROCEDURE OF ENVIRONMENTAL SCREENING...........................................................10 6. ENVIRONMENTAL TRAINING, MONITORING AND REPORTING........................................10 6.1 T RAINING ..........................................................................................................................................10 6.2 M ONITORING ....................................................................................................................................11 6.3 E NVIRONMENTAL R EPORTING ..........................................................................................................11 ANNEX 1 SUBPROJECT EXCLUSION LIST .....................................................................................13 ANNEX 2 LIST OF ENVIRONMENTAL SENSITIVE ZONES..........................................................16 ANNEX 3 EA CATEGORY IDENTIFICATION TABLE (SIMPLIFIED FOR USE BY CREDIT OFFICERS).................................................................................................................................................17 ANNEX 4 ENVIRONMENTAL SCREENING PROCEDURES.........................................................21 Page 4 4 1 Introduction China Development Bank (CDB) has decided to use a World Bank long term loan to provide technical assistance and credit lines to participating financial institutions (PFIs) in China, to promote sustainable access to credit for MSEs at formal financial institutions. Overall, sub-loans to MSE will typically range from RMB100 to RMB500,000 (with the option to later increase the maximum limit to RMB 1 million). The project