DESCRIPTION
The Project will develop a green, resilient, and smart logistics park and related facilities in Qinzhou Municipality, Guangxi Zhuang Autonomous Region (Guangxi), China. It aims to establish a pivotal logistics hub strategically designed to serve two major cross-border corridors: the New Western Land-Sea Corridor and the New Eurasian Land Bridge.
Located adjacent to the Mahuang Station, the largest railway marshalling yard on the Guangxi coast, and in close proximity to the Beibu Gulf Port, the Project enjoys an ideal location for connecting Southwestern and Northwestern China while extending trade routes into Southeast and Central Asia. The anticipated operational readiness of the Pinglu Canal and its Longwan Port post-2026 will further enhance access to China’s hinterland, resulting in a significant increase in cargo volumes. This strategic positioning, combined with access to key transport and trade consolidation hubs, uniquely positions the Project to develop freight inter-modality and promote trade through green connectivity.
This Project comprises four components: 1) logistics and service facilities within the logistics park; 2) a dedicated rail line that connects the logistics park with the existing freight rail Mahuang Marshaling Yard, along with a cargo unloading and uploading yard; 3) supporting infrastructure for the logistics park, such as roads and utilities; and 4) capacity building activities including training and research.
ENVIRONMENTAL AND SOCIAL INFORMATION
Environmental and Social Policy and Categorization: The Bank’s Environmental and Social Policy (ESP) including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL) will be applicable to this Project. As per the Bank’s ESP, the Project is currently proposed as Category A, considering the significant land acquisition activities required for Project construction. ESS1 – Environmental and Social Assessment and Management and ESS2 – Land Acquisition and Involuntary Resettlement are applicable. The environmental and social (ES) assessment will be conducted during project preparation to determine whether ESS3 – Indigenous Peoples is to be applicable to the Project when more information is available.
Environmental and Social Instruments: The ES instruments to be prepared prior to appraisal review will include: an Environmental and Social Impact Assessment (ESIA), an Environmental and Social Management Plan (ESMP), a Gender Action Plan (GAP), a Stakeholder Engagement Plan (SEP), a Resettlement Plan (RP), and potentially an Ethnic Minority Development Plan (EMDP), if needed.
Environment Aspects: The Project’s potential adverse environmental impacts during construction mainly include vegetation clearance, dust, air emissions from machine and vehicle, construction noise and vibration, soil erosion, construction and domestic wastewater and solid waste, traffic, and workers’ camp related disturbance, which are limited to the Project affected area, temporary or short-term, reversible, and can be readily mitigated by adopting good civil work management practice. Impacts during operation will include exhaust gases, domestic or hazardous liquids or wastes, use of refrigerants, traffic noise and vibration from the entrance trunk road and dedicated railway line, collision or electrocution risk to birds with power distribution lines, among others. Biodiversity baseline survey including ecological connectivity study, will be carried out during ESIA and appropriate measures will be undertaken during design and implementation stage to avoid or minimize habitat fragmentation and biodiversity impacts.
Social Aspects: The local communities will benefit from possible job opportunities directly and indirectly during construction and operation of the logistics park including those small and medium-scale businesses within and outside the Project area. Social risks of the Project are associated with construction and operation impacts on social disturbance due to dust, noise, and vibration; occupational health and safety (OHS); labor influx, risk of Sexual Exploitation and Abuse and Sexual Harassment (SEA/SH); community health and safety; and land acquisition. To manage these issues and impacts, the Project will prepare ESIA and ESMP to assess and manage vulnerable groups, community safety, gender-based violence (GBV), labor influx and traffic safety, etc. The ESIA will also consider the potentially different impacts on men and women and gender measures will be mainstreamed through the Gender Action Plan (GAP) and results indicators. In addition, the ESIA will conduct further assessment on whether the Project will trigger AIIB’s ESS3.
Occupational Health and Safety (OHS), Labor and Employment Conditions: The Project will involve typical construction work related OHS risks such as collision with moving machinery and vehicle, hazards associated with use of hazardous chemicals, electric shock, mechanical and load handling hazards, exposure to noise, dust, and vapours. OHS hazards during operation include exposure to noise, dangerous or hazardous goods and chemicals, etc. The ESMP will include requirements to identify and mitigate potential health, safety, social and environmental hazards in all Project activities that pose a risk to employees and may also have the potential for disruption of site works. In addition, all suppliers and contractors will be advised of the importance of implementing appropriate management measures to identify and address issues related to the ES provisions of the ESMP, including labor and working conditions and health and safety matters. Compliance with the ESMP is an essential part of the contract document with suppliers and contractors. This compliance as well as representations and warranties to be provided to the Project Implementing Entity (PIE) by suppliers and contractors will be reflected in relevant agreements and contracts.
Stakeholder Engagement, Consultation, and Information Disclosure: Key stakeholders, including Project affected parties, other interested parties, and disadvantaged and vulnerable groups will be identified and consulted during Project preparation. A stakeholder engagement plan (SEP) will be prepared by the Borrower to assess the impacts to and influence by these various stakeholders, formulate differentiated approaches and strategies for engaging with them in a meaningful and culturally appropriate way, and specify the roles and responsibilities of project management and implementation units in implementing the SEP throughout the whole process of Project preparation and implementation. The consultation process, including comments and suggestions received from stakeholders and how they are addressed, will be documented in the ES instruments. The ES instruments in English and Chinese will be disclosed by the Borrower on its website at least 60 calendar days before consideration of Bank’s financial approval if the Project’s ES categorization remains A.
Project Grievance Redress Mechanism: A multi-tier Grievance Redress Mechanism (GRM) will be established at the Project level to receive and facilitate resolution of the concerns or complaints of the people who believe they have been adversely affected by ES impacts of the Project. In addition to the above GRM for addressing complaints from the local community, a commensurate mechanism will be made available for raising workplace grievances. The Project-level GRM will be operational before commencement of any project activities that require the GRM coverage are implemented. The information of established GRM and Bank’s Project-affected People’s Mechanism (PPM) will be timely disclosed in an appropriate manner.
Monitoring and Reporting Arrangement. The PIE will be responsible for monitoring overall Project implementation. The PIE will hire and mobilize third-party environmental and social monitoring consultants that will provide ES support to the PIE during the project implementation stage including preparation and submission of the ES monitoring reports based on agreed format, quarterly in the first year of Project implementation, and semi-annually in the succeeding years. The Bank ES team will also conduct regular field-based monitoring missions to appraise the PIE's implementation of the Project.
