DESCRIPTION
Minsheng Education Group Company Limited (Minsheng) is a leading private tertiary and vocational education company. Founded in 1998, Minsheng operates and/or manages ten schools in China with around 100,000 students.
The proposed AIIB financing is a corporate loan of up to USD60 million equivalent in CNY to Chongqing Minsheng Education Management Company Limited (Chongqing Minsheng), a subsidiary of Minsheng to support the upgrades and expansions of its three schools in Chongqing, China.
The AIIB loan will mainly finance the capital expenditures of Chongqing College of Humanities, Science & Technology (Chongqing College), Pass College of Chongqing Technology and Business University (Pass College), and Chongqing Applied Technology Vocational College (Vocational College). The proposed upgrades and expansions are intended to transform existing campuses and build new education facilities in line with international standards for “Green Campus” to the extent feasible.�
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL), applies to the Project. ESS 1 (Environmental and Social Assessment and Management) is applicable to the environmental and social aspects of the Project. ESS 2 (Involuntary Resettlement) is not triggered as there has been no involuntary resettlement within three years prior to identification of the Project for possible Bank financing. Project activities will occur on lands for which the Borrower secured land use right in 2020 or earlier. While the application of ESS3 (Indigenous Peoples) is currently not anticipated, this will be confirmed during the final review. The Project is classified as Category B, because (i) no involuntary resettlement; (ii) no impacts on indigenous peoples are expected; and (iii) the campus expansion activities are unlikely to result in significant adverse environmental and social (E&S) risks and impacts. The anticipated E&S risks and impacts are expected to be short-term, local, reversible and manageable by implementation of good international practice.
Environmental and Social Instruments. The AIIB Loan will finance the expansions and upgrades of Minsheng's three schools in Chongqing. This includes the upgrades of Chongqing College and Vocational College on the existing campuses, as well as Pass College at a new location. The PT is currently undertaking environmental and social due diligence (ESDD). The ESDD will consider the Borrower’s and three colleges’ Environmental and Social Management System (ESMS) or equivalent documents, E&S performance of existing facilities, ongoing legacy issues and/or unresolved matters related to land acquisition and resettlement (if any); review reports and studies related to E&S aspects undertaken to date. This ESDD will also identify gaps with AIIB’s ESP and propose an Environmental and Social Action Plan (ESAP) to align the Project with AIIB’s ESP principles and requirements.
Environmental Aspects. The Project will mainly finance new capital expenditures of Minsheng's three schools in Chongqing, including supporting the construction of technology-enabled education infrastructure, as well as digital education facilities (multimedia classrooms, computer rooms, digitally intelligent blackboards) and student dormitories with digital intelligence functionalities. It will also finance energy saving facilities and waste treatment facilities in the school campuses as well as the purchase of new teaching facilities and equipment that are energy efficient. It is expected that construction risks and impacts will be generated during site development and building construction. These activities may generate dust, vibration, noise, water, wastewater and air pollution as well as waste materials such as spent paint, construction chemicals, solid wastes, domestic wastes, construction debris and lack of access. The Project’s Environmental Management Plan (EMP) should contain mitigation measures to address the risks and impacts. The ESDD will determine the capacity of the Borrower to manage the environmental risks and impacts and to reinforce the ESMS. The ESAP will address the gaps and shortfalls in the EMP that need to be strengthened, while the E&S monitoring plan will be implemented by the Borrower and reported to Bank on a quarterly basis.
Social and Gender Aspects. The Project is designed to avoid new land acquisition and resettlement. The upgrades of Chongqing College and Vocational College will occur on the existing campuses, while the Pass College expansion, although greenfield development, the Borrower secured land use right in 2020. This indicates that any land acquisition and resettlement were complete by that time. A due diligence on land acquisition will be incorporated into the ESDD process, with a particular focus on Pass College expansion, given that it is a greenfield development. The other two colleges have been operational for over a decade. If any legacy issues or unresolved matters concerning land acquisition and resettlement are identified, corresponding mitigation measures will be proposed in the ESAP. Social risks may include labor influx during construction, labor and working conditions including occupational health and safety during both construction and operation, as well as community health and safety, particularly life and fire safety management for public access buildings on campus. Measures will be put in place to prevent accidents, injuries and disease associated with the Project. Additionally, the influx of labor during construction phase may also elevate risks associated with gender-based violence (GBV), sexual exploitation and abuse (SEA) and sexual harassment (SH) (GBV/SEA/SH). Management of these risks will rely on the Borrower’s, contractors’ and colleges’ management procedures and plans. The ESDD will review these procedures and plans, proposing mitigation measures if existing management procedures and plans are found to be insufficient.
Stakeholder Engagement, Consultation and Information Disclosure. Meaningful and culturally appropriate engagement with stakeholders will be carried out throughout the Project cycle involving various categories of stakeholders. The ESDD will review the adequacy of stakeholder engagement process conducted to date and recommend corrective actions as necessary. The E&S instruments will be timely disclosed by both the Borrower and the Bank in an appropriate manner to the public.
Project Grievance Redress Mechanism (GRM) and the Arrangement of Monitoring and Reporting. A two-tier and gender sensitive GRM will be established to receive, acknowledge, evaluate, and resolve complaints related to E&S issues. The first tier will be established at the Borrower level, while the second tier will be operational at each of the three colleges individually. This process will be undertaken using understandable and transparent processes that are gender responsive, culturally appropriate, and readily accessible to all segments of the affected people. Records of grievances received, corrective actions taken, and their outcomes will be properly maintained. The information of established GRM and Bank’s Project-affected People’s Mechanism (PPM) will be timely disclosed in an appropriate manner. More detail arrangements for E&S monitoring and reporting, including reporting format and the frequency, will be discussed and determined with the client during ESDD.
