China - Mainstreaming Adaptation to Climate Change into Water Resources Management and Rural Development Project : environmental assessment (Vol. 2 of 6) : Environment report for Hebei Province

E1705 v 2 China Research Academy of EnvironmentalSciences January 2005  1.1. Purpose and Contents of Report...............................................................................1 1.2. Background...................................................................................................................1 2.1. EnvironmentalIssues of IAIL2 Project..................................................................2 2.2. Assessment ofActual Environmental Impacts of MIL2 Project ......................3 2.3. SummaryConclusionsof IAIL2 EnvironmentalImpactsAssessment............7 2.4. Recommendations for Improvement of IAIL3 EnvironmentalManagement.7 3. COMPARISON ENVIRONMENTALCONDITIONS OF AND ENVIRONMENTALIMPACTS BETWEENIAIL3AND IAIL2 .............................................................................................8 3.1. Comparisonof Project Counties (Cities)................................................................8 3.2. Comparison of Environmental Conditions........................................................... 11 3.3. Comparisonof Project Contents ............................................................................ 13 3.4. Main Conclusions...................................................................................................... 16  1. Introduction 1.1. Purpose and Contents of Report This EnvironmentReport (the Report) for Hebei Province is prepared for the appraisal of the proposed World Bank loan-financedIrrigatedAgricultureIntensificationProject I11 (IAIL3, the Project). The World Bank preparation mission of November 2004 proposed that the environment category of the Project remains to be type B due to the similaritiesbetween the Project and IrrigatedAgriculture IntensificationProject I1 (IAIL2) in terms of project areas and basic contents. In order to simplifyprocedures the Bank no longerrequires to review a full environmentalassessment report for the Project, but requires to 1) assess the actual environmentalimpacts of the IAIL2 Project; 2) comparethe environmentalconditionsof IAIL3 and IAIL2; and 3) prepare environmentalmanagement plan by Project provinces. In compliancewith the above requirementsthe main contents of the Report include: I) Overview of the actual environmentalimpact assessment of the MIL2 Project Hebei Component; 2) Comparisonof environmentalconditionsand contents between IAIL3 and IAIL2 in Hebei; 3) Clarificationon the preparation of EnvironmentalManagement Plan for MIL3 in Hebei; 4) Hebei Project Area EnvironmentalManagement Plan (attachedto the Report). 1.2. Background Since 1998the IAIL2 Project had been implemented in 27 cities and counties of Hebei's four municipalities,including Tangshan, Qinhuangdao, Cangzhou and Hengshui. The project was completedas scheduled in end 2002. Project implementationhas improved local agriculturalproductive conditions, promoted agriculturalrestructuring, increased farmers' income and improved the level of agriculturaltechnologies,thus achieving remarkable economic, social and ecological benefits. To this end, the State Office for Comprehensive AgriculturalDevelopment (SOCAD) has decided to continueto implement the IAIL3 Project in the above five provinces.  Entrustedby SOCAD the China Research Academy of Environmental Scienceshas undertaken to conduct environmentalimpact assessment (EIA) for the Project and prepared the Report according to the requirementsof the Bank preparation mission. 2. Overall Assessment of Environmental Impacts of IAIL2 Project In June 2004 SOCADprepared the "EnvironmentalManagement Reportfor theIrrigated Agriculture Intenszfzcation Project 11" to be as one of the IAIL2 ICR supporting documents(Reference Document 1).The report summarizesand evaluatesthe environmentalmanagementwork, status of implementationof relevant environmental covenants in the Loan Agreement and the actual environmentalimpacts followingproject implementation.The Report only outlines the actual environmentalimpacts of IAIL2. 2.1. Environmental Issues of MIL2 Project The main objectives of the project were to increase agricultural production and farmers' income through improvement and rehabilitationof the existingirrigation facilitiesin the project areas. Main project componentsinclude canal lining, constructingon-farm works, rehabilitating existing and building new pumping stations and tube wells, land leveling, improving field passageways and building field drainage network and windbreak shelter belts. The project did not involvethe constructionof new reservoirs and new main and branch canals. In March 1997the Bank preparationmission rated the project as Category B in terms of its environmentalimpacts. Based on the EIA report of IAIL2 the Project Appraisal Document (PAD) specifiedthat there were no significant environmentalissues under the project and, the important environmentalissues included likely groundwater overdraft and likely soil salinization, and other issues includedthe environmental impacts of constructionactivities and control over the application of pesticides and chemical fertilizers, etc. These issues are shown in Table 2-1. Table 2-1: Environmental Issues Involved in ProjectAreas of Hebei Environmental Significant Important I Other Environmental Issues Issues Environmental ~nvironmentalIssues I Issues Impacts of constructionactivities; overdraft; Control over applicationof pesticides Main Contents None Soil salinizationin and chemical fertilizers some project areas  It was confirmed there were no environmental issues resulting from dam safety and diversion from the Yellow River for irrigation. 2.2. Assessment ofActual EnvironmentalImpacts of IAIL2 Project 2.2.1. Significant EnvironmentalIssues Evidences of project implementationin Hebei Provincehave verified the conclusion in the Bank's PAD of "the Project doesn't involve any significantenvironmental issues". The project did not see any of them during its implementationand will unlikely see any either in the future. 2.2.2. Important Environmental Issues I) GroundwaterResources Protection During project implementationHebei Province had fulfilledthe requirements of the Bank Loan Agreement, including: 1) No new wells were built in groundwater overdraft areas; 2) Permits were obtained for driven well for use of groundwater; 3) Depth of all newly drilled wells did not exceed 50 meters; 4) Groundwatermonitoring was conducted. In addition, the significance of comprehensive water saving ("real" water saving) was stressed during project implementation through implementing a series of measures including engineering, agronomical and intensified water saving measures, which has produced remarkable water saving benefits with improved water use. Estimations show that after construction of anti-seepagecanals water use rate rose from the original 43% to 70% while the rate for anti-seepage pipes and sprinklers reached over 95%. Project implementation has to some extent relieved the trend of groundwater overdraft and declining groundwatertable due to a series of water savingmeasures taken. However, project implementation in Hebei coincided with the drought cycle, when precipitation was much less than normal for consecutive four years 1999-2002). Annual rainfall was about 20-40% less than the multi-year average, as shown Table 2-2. Table 2-2: Statistics of Precipitationin Project Areas During 1998 to 2002 Annual average precipitation (mm) Difference (mm) 1998 1999 2000 2001 2002 SYA MYA (mm) 621.0 366.8 521.9 490.9 366.9 473.5 597.8 -124.3 5YA= five-year average; MYA=mul.ti-yearaverage  Due to less precipitation more irrigationwater was used but such use was within the range of water resources balance. Table 2-3 shows groundwater extraction for Hebei during 1998and 2002. Table 2-3: GroundwaterExtraction in Hebei (1998-2002) Annual Extraction (10000 m3) Annual Five- Average year Multi-year Averag Resources Difference (10000m3) 1998 1999 2000 2001 2002 e (l0000rn3) Hebe 16,103 23,533 17,545 20,359 25,993 20,707 19,947 760 i Note: The difference is that between fiveyears annual average and the normal available groundwaterresources. Positive value indicates that actual extraction is greater than multi-year average groundwaterresources. The above tables indicate although there was much less precipitation in the province's project areas, the annual average groundwater extraction was only a little more than multi-year average groundwater resources (7.6 million m3 or 3.8%). This explains that project implementation had not produced obvious negative impacts on groundwater resources balance. However, less precipitation had reduced groundwater replenishment, which resulted in declined groundwater table in the project areas. Compared with 1998, groundwater table in Hebei project areas dropped an average of 2.21 m in 2002. Analysis on multi-year average groundwater depth indicates drop of groundwater table in the project areas of Hebei remainedwithin the normal range. In wet years groundwater can be replenished and the table will rise. The year 2003 was a normal year for Hebei, when annual precipitation was only 30mm more than the multi-year average value, but compared with 2002 groundwatertable rose by 1.24m,as shown in Table 2-4. Table 2-4: Statistics of Annual Precipitation (1998-2003)and GroundwaterTable Average in Average in Multi-year Item 2003 2002 98-02 98-03 Average Precipitation (mm) 366.9 473.5 628.18 499.3 597.8 Groundwater depth 8.59 7.54 7.35 7.50 6.38 11) Soil Salinization  In the North China Plain (Huang-Huai-Hai Plain), where the project is located, large quantities of groundwaterhave been exploited for agriculturalirrigation since the 1970s, which has caused a general decline of groundwater table. In general, conditions of critical groundwater depth (E.0 meters) for soil salinizationhave disappeared. ContinuousFresh water irrigation in the project areas has continuouslydesalted soil. Therefore, secondary salinization could appear only a few low-lyingland along the rivers, lakes and coasts as well as few project areas where slightlysalty water with the mineralizationlevel 1-2g/L and salty water with the mineralizationlevel of greaterthan 2g/L were used for irrigation. Project implementationcoincidedwith drought. Groundwater in the project areas was far deeper than the critical depth for soil salinization,which could not lead to new soil salinization. During the implementationof the project, Hebei conducted continuousmonitoring on soil salinityin its project areas. The monitoringresults show that sinceproject implementationno soil salinizationproblem had occurred in the project areas. 2.2.3. Other Environmental Issues I) Impacts of ConstructionActivities Most of the works under this project were excavationand construction of laterals, structuresand pumping stations.These works were small and relatively simple and scattered. Most of the activitieswere undertakenin alreadydeveloped farmland areas and the constructionperiod was short (generallywithin half a year). Therefore, environmental problems related to project constructionwere minor and the impacts were tiny. In addition, during project implementation, for constructionof relatively important projects the contractors were required in the contractsto complywith relevant national and local laws, regulations and standards on environmental protection, sanitation and epidemicscontrol and the Engineerswere entrusted to supervisethe contractors. Therefore, constructionof all civil works caused neither major environmentalproblems nor significantpublic health problems or public complaints. 11) Control of Fertilizer and PesticideApplication During project implementation,IPM technologies were widely adopted in the project areas. The integration of disease-resistantvarietiespromotion with applicationof pesticides with high efficiency, low toxicity and low residue and bio-pesticidesreplacing original highly toxic pesticides had effectivelyimproved farmland eco-environment in the project areas. Table 2-5 compares the use of pesticides and chemical fertilizersduring and before the project.  Table 2-5: Changes in Application of Pesticides in Project Areas of Hebei (%) Reduction of Pesticides Per Reduction of Highly Increase of Bio-pesticides Unit Area Toxic Pesticides 47 94.3 82.5 In response to the deficit of phosphate and potassium, particularly potassium, the project provinces carried out a number of measures during the implementation of the project to balance soil fertility, i.e. control of nitrogen (reducing nitrogen application in some project areas), stabilizing phosphate (increasingphosphate application in some areas) and supplementing potassium. Changes in soil fertility in project areas between 1998 and 2002 are summarized in Table 2-6. Table 2-6: Changes of Soil Fertility in Project Areas between 1998 and 2002 Without Project With Project N p205 K20 N P205 K20 \ 1 0.3 0.25 1 0.4 0.3 In addition, advanced fertilizing techniques were disseminated in project areas, such as deep application, mixed application, etc., thus increasing fertilizing efficiency, lowering loss of chemical fertilizers and reducing the negative impacts of irrigation run-off on receiving water bodies. Hebei Provincial PMO conducted environmentalmonitoring for five consecutive years on the project's environmentalimpacts project implementation. Table 2-7 summarizes basic environmentalmonitoring conclusions. Table 2-7: Basic Conclusions of EnvironmentalMonitoring Items Evaluation Conclusion 1 I 1. Environment Quality 1) Surface irrigation In general, the quality was good and improved year by year. water quality 2) Irrigation run-off The quality met the requirement of irrigation with quality comprehensivepollution index decreasing year by year, no significantnegative impacts on receiving water bodies. 3) Groundwater Quality was good and stable. Secondarymineralization found quality only in a few spots. 4) Soil pollution Soil quality was good with single and comprehensivepollution (indices decreasing. 5 ) l Good quality farm produce, which met relevant national quality contamination standards. 2. Groundwater 1) Groundwater table Groundwater table lowered (1-2m), but within normal range. 2) Groundwater Slightly overdraft extraction 3. Soil Fertility I Soil fertility increased with more rational composition of N, P  1 1and K. The above results indicate that due to effectiveimplementation of various environmental protection measures, overall environment quality was rather good and improved year by year. Project implementation has not imposed any significantnegative impacts on the environment. Therefore, the project is environmentallysustainable. 2.3. Summary Conclusions of IAIL2 EnvironmentalImpactsAssessment Table 2-8 summarizes the actual assessment of environmental impacts of IAIL2. Table 2-8: Summary Conclusions of EnvironmentalAssessment Items Status of CompletionlAssessmentConclusion I Significant Environmental No significant environmentalissues occurred. Issues Important Environmental Issues 1)Groundwater overdraft Comprehensivemeasures were taken to prevent excessive exploitation. Groundwaterresources within balanced range. I 2) Soil salinization /No soil salinizationwas found. I 1) Environment quality Five-yearmonitoring shows improved environment quality. 2) Groundwater table Groundwatertable dropped by 1-2m due to serious drought,but within the normal range. 3) Soil fertility Monitoring results show improved soil fertility and composition of N, P and K. Other Environmental Issues 1)Environment management Relevant laws and rules were observed during during construction construction.No important environmentalproblems emerged. 2) Control of pesticides and IPM and balanced fertilizing reduced pesticide chemical fertilizers residue and loss of chemical fertilizers. 2.4. Recommendations for Improvement of IAIL3 Environmental Management Based on the lessons learned fiom IAIL2 in terms of environmental management practices improvements should be made in the following aspects:  1) IAIL2 EMP was not so specific and IAIL3 EMP shouldbe more targeted and applicable; 2) IAIL2 didn't focus on water saving and water saving objectives should be clearly set for IAIL3; 3) Accordingto the environmentalpractices of IAIL2 methodologiesand contents of environmental monitoring for IAIL3 shouldbe adjusted as appropriate. 3. Comparisonof EnvironmentalConditions and Environmental Impacts Between IAIL3 and IAIL2 3.1. Comparison of Project Counties (Cities) 3.1.1 Comparison by AdministrativeDivision Table 3-1 lists the project cities and countiesof IAIL2 and IAIL3 and Figure 3-1 gives the location of IAIL2 and IAIL3 project cities and counties. Table 3-1: Comparison of IAIL2 and IAIL ProjectAreas in Hebei (byAdministrativeDivision) IAIL2 Project Areas IAIL3 Project Areas Municipality County (City, District) ~ u n i c i ~ a l i tCounty (City, District) ~ l Leting, Luannan,Qian7an,Yutian, Leting, Luannan, Qian'an, Tangshan Zunhua, Qianxi, Fengnan, Tanghai, Tangshan Yutian, Zunhua Fengrun, Luanxian QinhuangdaolFuning,Changli, Qinglong,Lulong Qinhuangdao I / Renqiu, Wuqiao, Botou, Renqiu, Wuqiao, Botou, Cangzhou ongguang,Cangxian,Hejian, Cangzhou Dongguang,Cangxian Qingxian,Nanpi Jizhou, Zaoqiang, Jingxian, Jizhou, Zaoqiang, Jingxian, Hengshui Hengshui Taocheng, Gucheng Taocheng Jinzhou, Wuji, Shijiazhuang ShijiazhuangXinji, Zhengding Anci, Guangyang, Weifang Weifang Yongqing, Wen'an Note: Bold ones refer to new project cities and counties. Table 3-1 indicates that among the IAIL3 Project spreadsin 22 countieslcitiesfrom five municipalities,of which 14countieslcitiesare former IAIL2 project areas, four each are within the new project municipalitiesof Shijiazhuang and Langfang..    3.1.2 Comparison by Irrigation Districts Table 3-2 lists the irrigation districts under MIL2 and IAIL3. As shown in the table, 14 counties (cities) are within the MIL2 project scope, which belong to well-canal combined irrigation districts. Some of the four counties of Shijiazhuang belong to well irrigation districts and four counties of Langfang belong to Yongding River Irrigation District, a well-canal combined irrigation district. Table 3-2: Comparison of IAIL2 and IAIL ProjectAreas in Hebei (by Irrigation District) IAIL2 IAIL3 Irrigation District County (City, District) IrrigationDistrict County (City, District) Xinji,Jinzhou,Wuji, Well ID Well ID Zhengding Jiyun River ID Yutian, Zunhua, Fengrun Qian'an, Luannan, Leting, / LuanRiver IDJ~uanxian,Qianxi, ~ e n ~ n a n , I I Luan River ID I~ian'an,Luannan, Leting Tanghai,Changli - $ + - Qinglong O ' QinglongRiver Qinglong,Lulong 2 + River ID L'? h ID Yang River ID Funing & Yang River ID 9 Baiyangdian Renqiu, Hejian 3 Baiyangdian ID Renqiu ID - -[u 5. Botou, Cangxian,Dongguang, Ea Botou, Cangxian, Dongguang, Yellow River WuqiaoJizhou, Jingxian, Yellow River Wuqiao, Jizhou, Jingxian, Diversion ID Taocheng, Zaoqiang, Gucheng, 5 Diversion ID Nanpi, Qingxian Taocheng,Zaoqiang Yongding Yongding River Anci, Guangyang,Yongqing, River ID ID Wen'an Note: Bold ones refer to new project cities and counties. *Refersto Yellow River diversion IDS. 3.2. Comparison of Environmental Conditions Table 3-3 below compares the agro-natural environment of new IAIL3 project areas (Langfang and Shijiazhuang) and those of IAIL2 (representedby Cangzhou and Hengshui), including climate, topography, soil, hydrology and geology, irrigation water resources and agricultural division. As indicated in the table that the new project area of Langfang is very similar to Cangzhou and Hengshui of IAIL2 in terms of natural conditions. Situated on the Hai River Alluvial Plain with two crops a year, of whom Langfang and Cangzhou are located in the northern part of the plain with subhumid moisture soil and salinized soil and Hengshui is located in the southern part with semi-arid moisture soil, yellow moisture soil and salinized soil. Furthermore, their hydrological and geological conditions are very alike. In terms of irrigated water use the three municipalities all belong to well-canal  irrigated districts, but irrigate mainly with groundwater. The new project municipality of Shijiazhuangis similar to its neighbor Hengshui in terms of natural conditions. According to "ComprehensiveNatural Divisionfor Agriculture of Xebei'' Shijiazhuang project area belongs to warm and temperate two-crop a year zone situated on the plain in front of the Taihang Mountain. The municipality is basically irrigated with groundwater since there are no suitable surface water sources.According to the hydrological and geological conditions in the project area, the first layer of shallow groundwater has dried up and the second layer groundwater is no being used. Compared with other project areas, Shijiazhuang has less annual precipitation (400-50Omm) and is short in water resources, where groundwater has been seriously overdraft in some sections. It is one of the IAIL3 environmental management objectives to relieve and improve the groundwater overdraft situation in Shijiazhuang project area through implementing comprehensive water saving measures. Table 3-3: Comparison of Natural Conditions of Some Project Areas Natural 1AIL2 IAIL3 Environment Cangzhou Hengshui Langfang Shijiazhuang Rainfall 517-577mm, annual Rainfall596mm, annual Rainfall502.9mm, annual Rainfall517-577mm, Climate averagetemperature average temperature 1 3 ' ~ average temperature annualaverage 12.3'~ 11.5'~ temperature 12.3'C Dongguang countysituated Zhengding&Wujion Situatedon lake-alluvial Topography Situatedon lake-alluvial to littoral plain and others mountain-flood-alluvial plain plain lake alluvial plain plain, Xinji&Jinzhou on lake-alluvialplain Mainly moisture and salinized moisturesoil; Mainlymoisturesoil and Mainly moisture soil and Mainly moisture soil and Soil salinity soil or swamp soil in salinity soil in some areas; salinity soil in some areas; salinity soil in some areas; some areas; soil is thick, mostly light soil. mostlylight soil. mostly light soil. sandy and light. Shallow groundwater at Shallow groundwater at Shallow groundwater at Shallow groundwater at layers I&II aquifer are layers I&II aquifer are layers I&II aquifer are Hydrology and layers I&II aquifer are mainlyfor extraction; fresh mainlyfor extraction; slightly mainly for extraction: Geology mainlyfor extraction; all water on most layer I salty water on most layer I slightly salty water on most fresh water. Layer Idried aquiferwithin exception of aquifer layer Iaquifer Wenwan county UP Belongs to Yellow River Belongs to Yongding Belongs to Yellow River River ID and Baiyangdian diversion ID, annual use diversion ID, annual use No surface water for ID, annual use 3.415 mil. 29.52 mil. m3(including 29.52 m3(including irrigation,all is m3.Shallow groundwater. Hengshui). Low Cangzhou). Low Irrigation groundwater. High groundwaterextraction High extractionlevel in groundwater extraction Water groundwater extraction fresh water areas, low level level, bigger potential in level, bigger potentialin Resources level. Short of water for all of and potentialin shallow shallow slightly salty water. shallow slightly salty water. areas and serious salty water. Favorable Favorablebalance of water Favorable balanceof water groundwater overdraft in resourcesin some areas balanceof water resources resources in some areas some areas. and deficit in some areas. in some areas and deficit in and deficit in some areas. most areas.  --- Southern Hai River Plain, a SouthernTaihang Northern Hai River Plain,a Northern Hai River Plain, a Natural low alluvial plain, semi-arid Mountain flood-alluvial low alluvial plain, subhumid low alluvial plain, subhumid Division for moisture soil,yellow plain; subhumid cultivated moisture soil and salinized moisture soil and salinized Agriculture moisture soil & salinized area with brown lime soil moisture soil moisture soil moisture soil and yellow moisture loam. 3.3. Comparison of Project Contents Table 3-4 compares the main contents of IAIL2 and IAIL3. Table 3-4: Comparison of IAIL2 and IAIL3 Project Contents IAILZ Contents IAIL3 Contents Canal and ditch excavation & dredging, Canal excavation,bridges, culverts and structures,drainage & irrigationpumping other structures, constructingnew and stations, agricultural-usepower cable, renovating existing pumping stations, Water rural roads, O&M equipment, 1,163 small agricultural-usepower cable, rural roads, Infrastructure water storageworks (ponds and water O&M equipment,constructing 11water- Construction tanks below 100,000m3)to be built, 8,903 storage dams, repairing and maintaining tube wells to be repaired & maintained 3,632 tube wells, drilling 12,931new tube and renovated. No new tube wells to be wells drilled Canal lining, underground pipeline, Engineering Anti-seepagecanals, low-pressurepipes, sprinkler and drip irrigationand mobile sprinkler and micro-(drip) irrigationand Water Saving surface hoses mobile surface hoses Land leveling, deep ploughingtsoil Land leveling,deep ploughing/soil Agronomical loosening,return of straw to field, loosening,return of strawto field, Water Saving balanced fertilization,training and balanced fertilization,training dissemination Management / I WUA, SIDD WUA, SIDD Water Saving I Improved-varietybreeding and Improved-varietybreeding and processing, IMP, county agricultural processing, IMP, township agricultural extensioncenters, township stations for extensioncenters, township stationsfor comprehensiveagriculturalservices, comprehensiveagriculturalservices, agriculturalmachinery,agricultural Agriculture agriculturalmachineryand service training and agriculturaldissemination stations, agriculturaltraining and and extension, green produce, agriculturaldissemination and extension, specialized farmer associations, pilot barn and sunning groundrenovation, cooperative operations among farmers fertilizerbatching plants and dragon-heads Construction of farmland windbreak Constructionof farmland windbreak Forestry shelter belts, nurseries, forestrypest shelterbelts,nurseries, forestrypest control control, Training, study tour, technical assistance, Institutional Training, study tour, technical assistance, scientificresearch and dissemination, Development scientificresearch, MIS, 4 SIDDs, 23 office equipment and MIS system, and Support W A S . farmers' associations(including WUA) Note: Bold parts refer to new additionalcontents.  The comparisonreveals that while improving, strengtheningand rehabilitatingthe original irrigated agriculturalregions, the main contents of the two projects are basically the same, including canal lining, constructingon-farm works, rehabilitatingexisting and building new pumping stations and tube wells, land leveling,improving field passageways and building field drainage network and windbreak shelter belts. A review of Table 3-4 finds that there are severalmajor differencesin the contents of MIL2 and IAIL3: 1) GroundwaterResources Protection L4IL3 values more on water resourcesprotection and drilling of new well is not allowed. In the project areas of Hengshui and Cangzhou salty-freshwater mixed irrigation techniques are to be disseminatedto protect deep groundwater resources. It is planned to renovate some wells with shallow saltywater (extractionof shallow salty water only). In addition,the number of small water storageworks will be increased in IAIL3 Cangzhou, Hengshui and Tangshan (by using the outdatedborrow pits of brick and tile plants. They will be used to collect and use rainwater to reduce extraction of groundwater resources. 2) Agriculture New additional contents under the Project include: 1) "greenV(Non-polluted)farm produce; 2) specialized farmer associations;and 3) pilot farmer-dragon head cooperative operations.In terms of component selection, those with livestockbreeding, high water consumption,heavy pollutions and use of wild resources are ruled out. Table 3-5 provides the proposed key pilot bases for productionof "green" farmproduce and the sites for pilot farmer-dragonhead cooperativeoperations.Table 3-6 lists the proposed specializedfarmers associationsto be established in the project areas. Table 3-6: Green Farm Produce Production and Products Farmer-Dragonhead Cooperative Operations Pilots of Hebei Category Municipality County Name Products Green vegetable Langfang Y~ngqing Green Farm demonstration Vegetables Produce Green wheat Shijiazhuang Xinji Wheat demonstration Pilot Farmer- Jingyu Vegetable Tangshan Yutian Vegetables dragonhead Zone Cooperative Longhua Cottom Hengshui Jingxian Cotton Operations Processing Plant  Table 3-7: Key Specialized Farmers' Associations to Be Supported in Hebei Municipality County Key Associations for Project Support Nanjianta Town Jingdu Honey Melon Association;Jiuzhou Town Naizifang Guangyang Nuisance-free (Chinese) ChivesAssociation,FugezhuangWater Melon Association, HangezhangGrape Association Langfang Anci GeyuchengTrees and Fruits Association Yongqing Yangma Village Vegetable Association;Daxinge Carrot Association Corn Further Processing ResearchAssociation,Cotton Farmers' Yong'an Association Quality Grain Production and Marketing Association,Vegetable Production Wuji and MarketingAssociation Xinji Xinji City Association of Quality Wheat for Exclusive Use Shijiazhuang Quyang TownshipEdible Fungus Association,Nanlou TownshipYellow Zhengding Peach Association Jinzhou Pear Fruit Industrial Association,Exclusive-useQualityWheat Association Yutian Weili Village Water Melon Association Zunhua Ping'an Town Edible Fungus Association Tangshan Luannan ChangningTown Fruit Agents' Association Leting Leting Town Nuisance-free(Chinese)Chives Association Qian'an Sweet Potato Industrial Association Anling Town Edible Fungus SpecializedAssociation,Goudianpu Chilly Wuqiao Pepper SpecializedAssociation Xiakou Town Zhangshen Cotton SpecializedAssociation, Qianhong Dongguang Vegetable association,Xiaoluo Grass Association Cangzhou Waliwang Town Pear SpecializedAssociation,Wenmiao Town Date Botou SpecializedAssociation Association for Services Provision to Peach Farmers, Red Date Industrial Cangxian Association Renqiu Beihan (Chinese)Chives Association,YongfengluVegetable Association Taocheng DengzhuangTownship Vegetable Association Jizhou Xuzhuang Township Cotton Association Hengshui Zaoqiang Tangrnu TownshipFarmers' Cotton Association Jingxian Fruits and Vegetable Production and Marketing Association As shown in Tables 3-5 and 3-6 the IAIL3 Project aims at supporting the planting, processing and marketing of green farm produce, fanner-dragonhead cooperative operational organizations and specialized farmers' associations. There are no activities involving livestock breeding, high water consumption, heavy pollutions and use of wild resources and therefore, there will be no relevant environmental issues.  3.4. Main Conclusions Based on the comparison of IAIL2 and IAIL3 projects the following conclusions can be drawn: 1) IAIL3 project cities and counties of Tangshan, Cangzhou and Hengshui are all former IAIL2 project areas and their natural conditions are exactlythe same. MIL3 environmentalissues are similarto those of IAIL2 and there are no new environmentalissues; 2) Although Langfang is a new project municipality,its natural conditions are very similar to those of Cangzhou and Hengshui. Also because the similaritiesin their project contents it is predicted that the environmental issues of Langfang project areas are similar to those of IIAIL2 project areas of Cangzhou and Hengshui and there will be no new environmentalissues; 3) IAIL3 Project no longer includesthe municipalities of Xinxiang, Puyang and Jiaozuo where groundwater resources are short. Therefore, IAIL3 Hebei doesn't include groundwateroverdraft areas any longer; 4) Shijiazhuangis a new project municipalityof IAIL3. Since irrigationin its project areasmainly relies on groundwater, groundwater excavation will be intensifiedand groundwateroverdraft will be more seriousthan other project areas. The most importantproject objective of Shijiazhuang is to implement comprehensivewater saving measures to graduallyreduce groundwater excavation and realize the balance of groundwaterresources. Accordingto the project plan Shijiazhuangis to lower groundwaterextractionyear by year and achieve a favorablebalance of groundwater resources by 2010. Project implementationwill havepositive impacts on the balance of groundwaterresources in the municipality; 5) The new contents of "green" farm produce, farmer-dragonhead cooperative operationalorganizationsand specializedfarmer associationsare to plant, process and market their respective local dominant agricultural products and there will be no componentsinvolving livestockbreeding, high water and wild bio-resources consumptionand heavy pollutions. Therefore, new contents will not lead to negative environmentalimpacts. 4. Clarificationon Preparationof IAIL3 EnvironmentalManagement Plan 1) Accordingto World Bank requirementsthe province has prepared a complete and separate IAIL3 EnvironmentalManagement Plan to be the attachmentof the Report; 2) Since the five provinces under the IAIL3 Project vary greatlyin natural conditions and differ in focuses on environmentalissues, accordingto the requirements of the Bank preparation mission separate EMPs by province will be prepared to make the plans more targeted at environmentalissues and facilitatetheir implementationby each of the provinces;  3) In view of the successfulimplementationof IAIL2 and that the natural conditionsof the project areas and contents of IAIL3 are basically the same as IAIL2, IAIL3 EMP is prepared based on the experienceand lessons learned from IAIL2, which will fwther improve the EMP for the Project. 4) Compared with IAIL2 EMP, NIL3 Hebei EMP has got the followingfeatures: XI Emphasizing groundwater overdraft as the priority of environmentalmanagement work in Hebei; a ConfirmingaboveeverythingelseenvironmentalissuesinvolvedintheProject, based on which the objectives and contents of environmentalmanagement are decided,making the EMP more targeted and applicable; m Emphasizinganalysis, evaluationand applicationof environmental monitoring results; a Clarifyingenvironmentalmanagementagencies,theirrespectiveresponsibilities and costs and sources of funding for EMP implementation; m Making necessary adjustmentsto the items,parameters,venue and frequencyof environmentalmonitoring; a Inlightofthecurrentmodelforconstructionmanagementofphysicalprojectsin China, the environmentalprotectionmeasures to be implementedby the Contractorare summarized and incorporatedinto the contractin the form of "Rules for ConstructionEnvironmentalProtection, with its implementationbeing supervisedby the site Engineer entrusted by the Project Management Office (PMO).Environmentalprotection measures for constructionactivitieswill not be detailed in the EMP. Attachment 1: IAIL3 Hebei Environmental Management Plan