MEP spokesperson Tao Detian said today that, in response to the non-compliances of several regions and businesses who seriously breached the national industrial policies, development plans and environmental conditions for access to construction projects, MEP decided to, before their scientific demonstration and rectification measures, suspend the approvals of the environmental impact assessment statements of the hydropower development project in the middle reaches of Jinsha River, of the construction projects (except the projects on new energy and prevention and control of pollution) of China Huaneng Group and China Huadian Corporation, as well as of the construction projects of iron and steel industry of Shandong province, so as to control the environmental non-compliances and while keeping steady and fast economic growth, promote the economic restructuring and shift of development modes, and make the development process more coordinate and sustainable.
According to Mr. Tao, Yunnan Ludila Hydropower Co., Ltd. under China Huadian Corporation and Longkaikou Hydropower Co., Ltd. under China Huaneng Group built Ludila hydropower station and Longkaikou hydropower station in the middle reaches of Jinsha River without EIA approvals and began to dam the river. The 3rd phase project of Yimin Coal and Power Co., Ltd. under China Huaneng Group changed without approval the direct air cooling method in the instructions to its EIA statements to water cooling method, regardless of the water shortage reality in local areas. The technological updating project of Shandong Rizhao Steel Group International Trade Company on hot rolled plate and strip and the construction project with 5 million tons of output of Weifang Steel Group violated the national industrial policies and steel development plans, and they were started construction and put into operation without the approvals of EIA statements. These enterprises and regions broke the national regulations on environmental management. In order to enhance environmental management, safeguard environmental safety, and punish environmental non-compliances, MEP ordered to suspend the approvals of the environmental impact assessment statements of the hydropower development project in the middle reaches of Jinsha River, of the construction projects (except the projects on new energy and prevention and control of pollution) of China Huaneng Group and China Huadian Corporation, as well as of the construction projects of iron and steel industry of Shandong province.
Mr. Tao said that as the hydropower construction projects had a wide influence, the delay or shortage of environmental measures, designs or management would have adverse impacts on the ecology in the upper and lower reaches of the river as well as on the social and economic life, so it was considerably necessary to go through the environmental impact assessment procedures and offer environmental designs for hydropower projects according to legal processes. Ludila hydropower station of China Huadian Corporation and Longkaikou hydropower station of China Huaneng Group started the main part of the project, including damming the river, without getting approvals on their environmental impact assessment statements, which would be extremely bad for mitigating the environmental impact of the project. In the meantime, based on the environmental impact analysis of the plan for scalar development of hydropower in the middle reaches of Jinsha River and on the research findings, thorough studies were needed on the method to develop Longtou Reservoir and Hutiaoxia river section as planned as well as their corresponding environmental impacts. Overall considerations were needed to develop and implement the water ecology of tributaries along the planned river sections and the conservation of alternative habitats as well as fish conservation measures. A coordination and management body should be established for ecological conservation in the scalar hydropower stations in the watersheds. In order to make sure that the Jinsha River basins was developed in a reasonable and orderly manner, MEP ordered to suspend the approval of environmental impact assessment statement for construction project on hydropower development in the middle reaches of the Jinsha River, urge relevant departments and entities to make up for the demonstration on the environmental impact assessment of the approved and unapproved construction projects in the middle reaches of Jinsha River, so as to improve the environmental impact assessment documents and measures according to the demonstration results. MEP also ordered to suspend the approval of EIA statements of all construction projects of China Huaneng Group and China Huadian Corporation except the projects on new energy and prevention and control of pollution. The move was to warn the two business giants which owned many energy-intensive and high polluting construction projects to enhance environmental management, and urge the businesses belonging to them to strictly follow environmental protection laws and regulations, adjust the industrial structures and perform the due social responsibilities and environmental duties.
Mr. Tao noted that the iron and steel industry was the priority area of recent years under macro control, because the production activities of this industry had a large scale, high energy consumption and high emissions. For the moment, the overall production capacity of this industry was excessive and a large proportion of it was outdated. Shandong in East China was one of the largest steel producers in China and one of the regions with prominent environmental problems. The suspension in approving construction projects in steel industry aimed to urge Shandong Province to thoroughly implement the plan of the State Council on adjusting and rejuvenating steel industry, adjust its industrial mix, speed up to phase out outdated production capacity, shift the development mode, and treat harder the environmental non-compliances of construction projects. In the meantime, Mr. Tao noted that local areas should approve the environmental impact assessments of construction projects by law. They should not lower the environmental requirements with the excuses of simplifying the approval procedures and shortening the approval times. They should pay special attention to strictly control the approvals of the environmental impact assessment of energy-intensive, high polluting industries and industries with overcapacities, and strictly investigate the behaviors that do harm to the environment.
Mr. Tao said that since the start of the 11th Five-Year Plan period, according to the requirements of the Central Government, MEP proposed to solve environmental problems from the macro strategic level, try hard to promote the deep integration of environment with the economy, and optimize economic growth with environmental protection efforts. In the process to address the current international financial crisis, efforts should be made to change the pressure into impetus, make the accelerated change of development mode and economic restructuring as the main way to guarantee economic growth, integrate the tasks to maintain economic growth, expand domestic demand and adjust the economic structure, take many measures to improve environmental impact assessment tasks on a timely basis, and try hard to provide services for the steady and fast economic development. From November 2008 to May 2009, MEP approved and gave written instructions to 365 projects which involved 1442.8 billion yuan investment, including 125 infrastructure construction projects for transportation, water conservancy, power transmission and transformation with investment up to 452.1 billion yuan. In the meantime, in order to avoid low-quality overlapping of energy-intensive and high polluting projects and projects with excessive capacities, MEP suspended the EIA approvals of or written instructions to 29 projects in petrochemical, iron and steel and thermal power sectors with investment up to 146.7 billion yuan, which greatly facilitated the adjustments to industrial structures. The reason why MEP suspended the EIA approvals of the hydropower development project in the middle reaches of Jinsha River, of some businesses and of industries with high environmental risks in some regions was to help promote local areas and businesses to follow the guidelines of the scientific outlook on development, seriously implement the requirements of the macro economic control and environmental protection policies, make all the construction projects to comply with the laws, and seriously implement the environmental impact assessment systems. MEP would follow up how the regions and businesses concerned did, urge them to make rectifications and share the rectification results with the public in a proper timing.
Annex I

Details and Requirements of the Order to Suspend the Approvals

I. Hydropower development project in the middle reaches of Jinsha River
Non-compliance details: Ludila hydropower station of Yunnan Ludila Hydropower Co., Ltd. under China Huadian Corporation and Longkaikou hydropower station of Longkaikou Hydropower Co., Ltd. under China Huaneng Group dammed Jinsha River in January 2009 without getting approvals on EIA statements, which had great impact on the ecology of the middle reaches of Jinsha River.
Decisions: MEP ordered illegal projects to suspend the construction of the main dams and adopt effective measures to ensure that the upper and lower reaches of the cofferdams could survive the flood season. It ordered that demonstration be made up for the environmental impact assessment of the approved and unapproved hydropower development construction projects in the middle reaches of Jinsha River and that environmental impact assessment be improved according to the demonstration conclusions. The EIA approvals for hydropower development projects in the middle reaches of Jinsha River would be suspended before the above-said tasks were completed.
II. China Huaneng Group and China Huadian Corporation
Non-compliance details: Yunnan Ludila hydropower station of Ludila Hydropower Co. Ltd. under China Huadian Corporation dammed the river in January 2009 before getting EIA approvals. Longkaikou hydropower station of Longkaikou Hydropower Co., Ltd. under China Huaneng Group also did so. The 3rd phase project of Yimin Coal and Power Co., Ltd. under China Huaneng Group changed without approval the direct air cooling method in the instructions to its EIA statements to water cooling method, regardless of the water shortage reality in local areas. It had potentially great adverse impact on local ecological environment.
Decisions: all of the construction projects (except projects on new energy and pollution prevention and control) of China Huaneng Group shall be suspended EIA approvals before the 3rd phase project of Yimin Coal and Power Co., Ltd. under China Huaneng Group completed rectification and Longkaikou hydropower station made up for the demonstration of EIA and completed rectification. All of the construction projects (except projects on new energy and pollution prevention and control) shall be suspended EIA approvals before Ludila hydropower station made up for the demonstration of EIA and completed the rectification.
III. Shandong Iron and Steel Industry
Non-compliance details: the technological updating project of Shandong Rizhao Steel Group International Trade Company on hot rolled plate and strip went against the Policy on Development of Iron and Steel Industry. It started construction in 2006 without EIA approvals. The major facilities including sintering machine, pelletizing line, blast furnace, and converters were completed and put into operation since the end of 2006, and the hot rolled plate and strip production line was also completed.
The 5 million steel output construction project of Weifang Steel Group was started construction from 1995 to 2009 without getting approvals for EIA statements. The two blast furnaces and two converters included in the original projects were restricted by 2005 Guiding Catalogue of Industrial Structure Regulation. The extended projects went against the regulation of Policy on Development of Iron and Steel Industry about "striking a balance between the added production capacity and the phased-out ones and, in principle, not allowing expanding the iron and steel production capacity".
Decisions: the EIA approvals for construction projects in the iron and steel industry of Shandong Province would be suspended before the above-said problems were solved, in order to enable the province to thoroughly implement the plan of the State Council on restructuring and rejuvenation of steel industry and light industry, adjust the industrial structure of iron and steel industry, speed up to phase out outdated capacity, control the disordered construction activities, change the development mode, and punish harder the environmental non-compliances of construction projects.

Annex II

Basic Information on the Illegal Projects and Decisions

I. Ludila hydropower station
Owner: Yunnan Ludila Hydropower Co., Ltd. under China Huadian Corporation
Construction site: Lijiang City of Dali Autonomous Prefecture, Yunnan Province
Non-compliance details: the project had total investment up to 17.79 billion yuan, installed capacity up to 2.16 million kw and storage capacity up to 1.693 billion m3. It dammed the Jinsha River in January 2009 without going through the EIA procedures, which had great ecological impact on the middle reaches of the River.
Decisions: MEP ordered the project to suspend the construction of main dam, adopt effective measures to ensure that the cofferdams in the upper and lower reaches would survive the flood season, make up for the EIA demonstration and further improve the EIA according to the demonstration conclusions.
II. Longkaikou hydropower station
Owner: Longkaikou hydropower Co., Ltd. under China Huaneng Group
Construction site: Lijiang City of Yunnan Province
Non-compliance details: the project had total investment up to 11.87 billion yuan, installed capacity up to 1.7 million kw and storage capacity up to 558 million m3. It dammed the Jinsha River in January 2009 without going through the EIA procedures, which had great ecological impact on the middle reaches of the River.
Decisions: MEP ordered the project to suspend the construction of main dam, adopt effective measures to ensure that the cofferdams in the upper and lower reaches would survive the flood season, make up for the EIA demonstration and further improve the EIA according to the demonstration conclusions.
III. 3rd Phase Project of Yimin Coal and Power Co., Ltd. under China Huaneng Group
Owner: Yimin Coal and Power Co., Ltd. under China Huaneng Group
Construction site: Hulunbeir City of Inner Mongolia Autonomous Region
Non-compliance details: the company changed without approval the direct air cooling method in the instructions to its EIA statements to water cooling method, regardless of the water shortage reality in local areas.
Decisions: MEP ordered to suspend the construction.
V. Technological updating project of Shandong Rizhao Steel Group International Trade Company on hot rolled plate and strip
Owner: Rizhao Steel Group International Trade Company
Construction site: Rizhao City, Shandong Province
Non-compliance details: the project included six 180-km2 sintering machines, two 360-km2 sintering machines, one grate-kiln pelletizing line, eight 1,080-m3 blast furnaces, four 120-ton converters, one steel bar production line, one wire rod production line and one production line for 2,150-mm hot rolled plate. The project was started in 2006 without approvals on EIA statements. All of the above major facilities had been completed and put into production except that the 2,150-mm hot rolled plate production line were built but not yet put into production. The project did not follow the specifications of the Policy on Development of Iron and Steel Industry about "striking a balance between the added production capacity and the phased-out ones and, in principle, not allowing expanding the iron and steel production capacity" and "iron and steel projects in coastal deep harbors should have the available volume of blast furnace more than 3,000 m3 and the norminal capacity of converts more than 200 tons".
Decisions: MEP ordered to suspend the construction.
 V. Construction project with 5 million tons of output of Weifang Steel Group
Owner: Weifang Steel Group
Construction site: Weifang City of Shandong Province
Non-compliance details: the construction project with 5 million tons of output under Weifang Steel Group was started from 1995 to 2009 without going through EIA procedures. The two blast furnaces and two converters included in the original projects were restricted by 2005 Guiding Catalogue of Industrial Structure Regulation. The extended projects went against the regulation of Policy on Development of Iron and Steel Industry about "striking a balance between the added production capacity and the phased-out ones and, in principle, not allowing expanding the iron and steel production capacity".
Decisions: MEP ordered the company to suspend the construction of the 5 million-ton steel project and the production of projects that were put into production without going through EIA procedures.