PEARL RIVER DELTA AIR POLLUTION FEASIBILITY

C O N F I D E N T I A L HONG KONG 002413

SIPDIS

SENSITIVE
SIPDIS

STATE PASS TO EAP/CM NICODEMUS AND OES/E

E.O. 12958: DECL: CONTRACT AWARD ANNOUNCEMENT
TAGS: ENRG SENV PGOV HK CH
SUBJECT: PEARL RIVER DELTA AIR POLLUTION FEASIBILITY
STUDIES ON THE WAY

Classified By: EP Chief Laurent Charbonnet. Reason 1.4b


1. (C) The Hong Kong government will announce the
commencement of two precedent-setting regional air pollution
feasibility studies at the end of September. These studies,
sponsored by the Hong Kong and Guangdong Provincial
Governments, are focused on the Pearl River Delta of Southern
China. The first is "Major Industrial Air Pollution Sources
in the Pearl River Delta", and the second is "Volatile
Organic Compound (VOC) Photochemical Ozone Pollution in the
Pearl River Delta." Both studies will be awarded to the U.S.
company ENSR/AECOM. These studies will serve as the
foundation for the two governments to establish new Air
Quality Objectives (AQOs) for a region grappling with
outdated policies, and significant air pollution challenges.


2. (SBU) Background: Peter Louie, Senior Environmental
Protection Officer in the Air Science Group at the Hong Kong
Environmental Protection Department (EPD),on September 5,
told Econoff in confidence that Hong Kong EPD soon would
announce these contract awards and commencement of the
studies.

The Air Pollution Feasibility Studies
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3. (C) Hong Kong EPD's Air Science Group believes that
sharing accurate and transparent data is the most critical
element in developing a solution to the worsening air
pollution in the Pearl River Delta (PRD). Hong Kong and
Guangdong governments, through the PRD Regional Air Quality
Monitoring Network, share information in the form of a
dedicated Internet line that delivers real-time air quality
data from Guangdong's thirteen official air monitoring
stations to Hong Kong. (Note: The first results from the
network were publicly released in October 2006, and now are
released annually.) The commencement of the Major Industrial
Air Pollution Sources and Volatile Organic Compound (VOC)
Photochemical Ozone Pollution feasibility studies mark the
next phase of partnership undertaken by the two governments
to assess the region's pollution sources comprehensively and
in-depth. World-recognized technical experts from U.S.
company ENSR/AECOM, will assist in the studies, said Louie.

4 (C) The EPD has the lead in Hong Kong and in the tendering
of these two contracts, while its mainland Chinese partner is
the Guangdong Environmental Protection Bureau (GDEPB). The
industrial study has funding of over USD $1.2 million and
will take place over 24 months. The VOC study also has
funding of over USD $1.2 million and will take place over 36
months. A number of U.S. and European companies competed for
the contract. Louie indicated that technical expertise was
the most important evaluation criteria, outweighing contract
costs. ENSR/AECOM was not the low cost bidder, but was the
"best company", and U.S. expertise was well demonstrated.


5. (C) The feasibility studies' results are expected to be
controversial, as the mainland continues to hold emissions
inventory data as a "state secret," only releasing the data
selectively on a project-by-project basis. However, EPD
believes that these studies can assist Guangdong Province in
becoming the the mainland's leader in addressing air
pollution. Note: EPD officials have frequent and positive
interactions with the California Environmental Protection
Agency and Air Resources Board and would like to emulate
California's success in reducing air pollution. End Note.
Cunningham