China - Eco-Farming Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2352 Date ISDS Prepared/Updated: 09/14/2006 I. BASIC INFORMATION A. Basic Project Data Country: China Project ID: P096556 Project Name: Eco-Farming Project Task Team Leader: Sari K. Soderstrom Estimated Appraisal Date: November 27, 2006 Estimated Board Date: June 28, 2007 Managing Unit: EASRD Lending Instrument: Specific Investment Loan Sector: General agriculture, fishing and forestry sector (30%);Renewable energy (30%);Crops (15%);Animal production (15%);Agricultural extension and research (10%) Theme: Climate change (P);Land administration and management (P);Rural services and infrastructure (P);Other environment and natural resources management (S) IBRD Amount (US$m.): 120.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 120.00 120.00 B. Project Objectives [from section 2 of PCN] The proposed project aims to achieve household and farm level environmental improvements through the establishment and improvement of biogas systems and biogas related on-farm investments. Benefits and positive externalities would accrue at various levels. More specifically: (i) public benefits would occur at the local level in the form of a better village environment with improved waste management and consequent impact in improved health; (ii) household sanitary conditions are expected to improve because of integrated toilet facilities and waste digestion and improved kitchen conditions; (iii) beneficiary incomes are anticipated to increase due to reduced energy expenditures and increased agricultural revenues from enhanced agricultural production. Women in project households will also save time by not having to collect fuel wood and by shorter cooking time. Page 2 Local and regional environmental benefits would accrue through reduction in local biomass (firewood and straw stalks) use, decreasing the pressure on forests and shrubs, therefore reducing forest degradation and desertification. This in turn would reduce soil erosion and occurrence of landslips, thus enhancing water resources management. It is also likely that local water quality would improve through increased use of organic fertilizer (created in the process of biogas production) and a consequent reduction in the use of in-organic fertilizers. Global positive externalities would accrue in the form of increased carbon recycling from reduction in firewood and stalk combustion, reduced coal use, and combustion of methane that would otherwise be emitted into the air. C. Project Description [from section 3 of PCN] The project would have four main components: Component 1: National Program Support. Support would be provided to the Ministry of Agriculture to: (i) develop a national monitoring and evaluation system for the Government?s various biogas programs; and (ii) develop a national replication and dissemination strategy for best practices that would define various government levels' roles in biogas planning, facilitation, training and information dissemination. Component 2: Integrated Eco-Farming Systems. The component would assist farmers, selected larger farms, and farmers groups to integrate biogas into their production activities to achieve integrated farming systems that improve the quality and efficiency of farm production. The component will comprise approximately 80% of the investment, and will have two subcomponents: 1. Household Biogas Development, comprising: (i) biogas infrastructure ? digesters and related equipment; (ii) biogas-related household infrastructure, such as animal sheds, toilets, kitchen improvements, stoves, water heaters, village roads, water supply; (iii) farm production improvements related to use of biogas residues, farm infrastructure, production management (e.g. new varieties, orchard rehabilitation) that would lead to improved utilisation of biogas residues to improve quality and efficiency of farm production. The farm production improvement subcomponent would be no more than 25% of the total project investment. The project will not support additional livestock purchases. 2. Biogas for Larger Farms, comprising support for biogas technology, equipment and training for staff in operation and maintenance of larger scale biogas plants. Component 3: Local Technical Extension and Service System. Strengthening and expanding the existing rural energy and extension agricultural service through (i) upgrading of technical extension and training facilities; (ii) equipment and materials for extension and biogas service systems; (iii) training for technicians (county, township) and farmers; (iv) applied research, including improved crop management using biogas residues; and (v) support to farmer biogas co-operatives. Page 3 Component 4: Project Management, Monitoring, and Evaluation. This component will support management, and monitoring and evaluation activities for the project.Investments will include: (i) equipment for PMOs; (ii) training; (iii) monitoring and evaluation; (iv) technical assistance; and (v) management costs. D. Project location (if known) The proposed project would be implemented in 5 provinces (Anhui, Hunan, Hubei (Enshi Prefecture), Chongqing Municipality, and Guangxi Zhuang Autonomous Region) and would be centrally coordinated by the Ministry of Agriculture. It would directly benefit about 500,000 farmer households and a limited number of larger demonstration farms. The household coverage of biogas systems in each project villages would be about 80%. E. Borrower