The Project’s Objective is to support the sustainable expansion of Qingyang’s Computing Industrial Park through integrated infrastructure improvements that enhance the Park’s low carbon performance, resource use efficiency, climate resilience, and service capacity.
The Project comprises three components: Component 1 (Core Green Enabling Infrastructure), Component 2 (Low-Carbon and Resource-Use Efficiency Infrastructure), and Component 3 (Institutional Capacity Building and Implementation Support).
Component 1: Core Green Enabling Infrastructure. This component will finance the core enabling infrastructure required to support the sustainable expansion of the Qingyang Computing Industrial Park. The investments are designed to increase the Park's service capacity, operational readiness, connectivity, and supporting infrastructure, enabling it to accommodate the continued growth of computing capacity under the Eastern-Data-Western-Computing (EDWC) initiative. The component focuses on public and shared infrastructure that benefits the Park as a whole and provides the essential conditions for future private investment.
Component 2: Low-Carbon and Resource-Use Efficiency Infrastructure. This component will finance the park-level systems that improve resource-use efficiency and support the Qingyang Computing Industrial Park's transition towards a green and low-carbon computing hub. The investments are designed to promote the circular use of water, energy, and computing equipment, strengthen carbon management, and enhance the environmental sustainability and operational efficiency of the Park.
Component 3: Institutional Capacity Building and Implementation Support. This component will support effective project delivery and long-term sustainability.
Applicable 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 the Project. As per the Bank’s ESP, the Project is currently proposed as Category A, considering the significant environmental and social (ES) impacts from new construction of roads, reclaimed water plant, e-waste recycling facility, and other types of public utilities infrastructure for the digital park operation. ESS1 (Environmental and Social Assessment and Management) and ESS2 (Land Acquisition and Involuntary Resettlement) are considered to be applicable. Application of ESS 3 (Indigenous Peoples), though not anticipated, will be further confirmed during Project preparation.
Environmental and Social Instruments. For AIIB financed Project components and potential associated facilities, Project Implementation Agency (PIA) will hire an ES consultant to prepare an Environmental and Social Impact Assessment (ESIA) with an Environmental and Social Management Plan (ESMP). To address issues of physical and economic displacement, a Resettlement Plan (RP) is going to be prepared. The ESIA will also include an ES audit on the existing facilities or ongoing activities, and due diligence on completed land acquisition and resettlement activities. In case the Project’s associated facilities include activities, whose details are not yet identified, an Environmental and Social Management Planning Framework (ESMPF) will be prepared. The required ES instruments will be further assessed during Project preparation.
Environmental Aspects. The park is located in areas substantially modified by human activities of agriculture and urban development, with no presence of protected or endangered species. Construction works are expected to generate adverse environmental impacts including vegetation clearance and soil erosion; dust, air and noise emissions; spoil soil and solid wastes generation; surface water, groundwater, or soil pollution; handling and storage of hazardous materials/chemicals; and disturbance to habitat and species. Operation phase related impacts depend on the type of infrastructure or asset, which include odor and other air emissions, effluent, and various types of solid wastes such as process residuals, used filtration membranes, and sludge from water treatment process; traffic related air emissions, noise, and road safety; recycling or disposal of e-waste and end-of-life panels and batteries; water consumption by the computing centers; risks to communities related to fire and explosion risks from battery energy storage systems (BESS), failure of the stormwater regulating reservoir, exposure to electromagnetic field (EMF), etc. The ESIA will assess the significance of such impacts and propose measures in the ESMP to avoid, reduce, or mitigate the risks or adverse impacts.
Social and Gender Aspects. The Project is expected to involve land acquisition and resettlement, as portions of the industrial park are located on collectively owned agricultural, forest, and orchard land. Land acquisition for the park commenced in 2022 through a government-led process. During appraisal, due diligence will be conducted for completed and ongoing land acquisition activities, including those related to associated facilities, and any legacy issues will be addressed through appropriate corrective measures. For Project components requiring future land acquisition and resettlement, a Resettlement Plan (RP) will be prepared, while a Land Acquisition and Resettlement Planning Framework (LARPF) will be developed where specific impacts cannot yet be identified. Other social risks may include labor influx, community health and safety impacts, and potential effects on cultural heritage. In addition, although data centers are not financed under the Project, the industrial park is expected to facilitate future data center investments, which may raise community concerns regarding water resource use and water security. These risks and impacts will be assessed through the ESIA and stakeholder engagement process during Project preparation. The potential impact of the Project activities on women in the community will be determined during due diligence and reflected accordingly in the ES instruments.
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, working at height or in confined space, excavation, hazards associated with use of hazardous chemicals, electric shock, mechanical and load handling hazards, exposure to noise, dust and vapors. During operation, workers may be exposed to hazardous atmosphere or chemicals, noise, pathogens or vectors. 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 PIA by suppliers and contractors will be reflected in relevant agreements and contracts.
Stakeholder Engagement, Consultation and Information Disclosure. Meaningful and inclusive stakeholder engagement with affected communities and other stakeholders will be carried out during the preparation of the ES instruments. A Stakeholder Engagement Plan (SEP) will be developed to support consultation and communication throughout the project cycle systematically. The ES instruments will be disclosed timely by the borrower and the Bank in an appropriate manner to the public in accordance with Bank’s ESP.
Project Grievance Redress Mechanism (GRM) and Monitoring Arrangement. Project-level GRMs will be established for both Project workers and Project-affected people to address ES concerns in an accessible and transparent manner. Grievances and resolution actions will be documented and monitored throughout Project implementation. The PMO, supported by the monitoring and evaluation consultants, will be responsible for monitoring and reporting on all environmental and social aspects of Project implementation. AIIB will provide implementation support throughout the Project implementation period through regular and dedicated implementation support missions, as well as ongoing technical discussions. More details about the monitoring and reporting will be discussed and determined during Project appraisal
People’s Republic of China
Guanzhu Wang
Director, Division II, Department of International Economic and Financial Cooperation, Ministry of Finance, China
Qingyang Yunchuang Smart Big Data Co., Ltd.
Tingzuo Zong
Director of the Management Committee of the Qingyang East Data West Computing Industrial Park
