China - Huai River Water Pollution Control Project : environmental assessment (Vol. 3 of 3) : Summary report

E-380 VOL. 3 Huai River Water Pollution Control Project Environmental Assessment SCMN" LErC. Summary P4L {. w ZIpnatn .) LfICr GRJTF ESW CdTRg An F- t L _7_ f L_ ! September 2000 -~~~~~~~~~~~~~~~~~~~~;. .cf ~ ~ ~ D = ..- . .--r .~ , - -~~ .. - ., * - ~ '*.. '->~_,o, .e.-' -, -$- ,- ' p9_- .__ - * 7_ 2 Z .'. ~- . '7-~~ ~~~~~ ,-, "i7__ - 'M_ ,S, . , , _, Anhui Provincial PMO Shandong Provincial PMO with assistance from Mott MacDonald/ERM   Huai River Water Pollution Control Project Environmental Assessment Summary Table of Contents 1 Overview . 2 Huai River Basinn.I 2.1 General .1 2.2 Anhui Province .2 2.3 Shandong Province .3 3 HRWPCP Project Goals and Objectives ............................3 4 Need for the Project ............................3 5 The Prioritisation of Schemes ..4.........................4 6 Overview of HRWPCP Components ..5 6.1 Anhui Province .5 6.2 Shandong Province .6 6.3 Implementation Schedule .7 6.4 Technical Assistance .7 7 Water and Environmental Objectives ...................................8 8 Project Benefits and Impacts ...................................8 8.1 Project Benefits ...8...............................8 8.2 Social Impacts ...................................9 8.3 Environmental Impacts ...................................9 9 Alternatives Reviewed in Project Development ................................... 10 10 Mitigation and Monitoring ...................................11 10.1 Mitigation and Monitoring Budget .................................. 11 10.2 Annual Environmental Quality Report .................................. 12 11 Public Participation in the Environmental Assessment ..14 12 Overall HRWPCP Project Assessment ..14 12.1 COD Removed, Anhui Province .15 12.2 COD Removed, Shandong Proince .16 13 Conclusions and Recommendations ..18 14 Ongoing Activities ..20 15 Attached Figures ..20 S-i September 2000  Huai River Water Pollution Control Project Environmental' Assessment Summary Currency Equivalents (Exchange Rate Effective October 1999) Currency Name: Renminbi Currency Unit: RMB RMB 8.3 = US$1.00 US$0.12 =RMB 1.0 Abbreviations and Acronyms AC Advisory Consultant NCMEDI North China Mun Eng Design Institute AIC Average Incremental Cost OD Oxygen Demand AP Action Plan for IDP PAD Project Appraisal Document (WB) ATP Ability to Pay PAP Project Affected Person BOD Biochemical Oxygen Demand PIP Project Implementation Plan COD Chemical Oxygen Demand PIU Project Implementation Unit (Municipal) DHV DHV Consult. BV/D&J Eng Consult. Co PMO Project Management Office (Provincial) DO Dissolved Oxygen PPP Project Procurement Plan DRICSI 9h Design & Research Institute for PRC People's Republic of China China Shipbuilding Industry PS Pumping Station DWF Dry Weather Flow (sewage) PV Present Value EA Environmental Assessment RAP Resettlement Action Plan EIRR Economic Internal Rate of Return RMC Resident Mission in China EMP Environmental Management Plan RMDI Rizhao Municipal Design Institute EPB Environmental Protection Bureau SDPC State Development and Planning Commission ERM Environmental Resource Management SEPA State Environmental Planning Agency FIRR Financial Internal Rate of Return SLIDI Shandong Light Industry Design Institute FSR Feasibility Study Report SS Suspended Solids HRBC Huai River Basin Commission SUCDRI Shandong Urban Construction Design HRWPCP Huai River Water Pollution Research Institute Control Project TVE Town and Village Enterprise IDC Interest During Construction WB World Bank (International Bank for IDP Institutional Development Plan Reconstruction and Development) IST Institutional Strengthening and Training WRB Water Resources Bureau JMEDI Jinan Municipal Engineering Design WSC Water Supply Company Institute WTP Willingness to Pay LG Leading Group WTW Water Treatment Works lI/c/d Litres per capita per day WWC Wastewater Enterprise LIBOR London Inter-bank Borrowing Rate WwTW Wastewater Treatment Works MLG Municipal Local Government MoF State Ministry of Finance NB: SI units of measurement have been used throughout this report S-ii September 2000  Huai River Water Pollution Control Project Environmental Assessment Summary 1 OVERVIEW This report provides a brief summary of the major findings in the two Provincial Environmental Assessment (EA) Reports produced for Anhui and Shandong Provinces, under the Huai River Water Pollution Control Project (HRWPCP). The Provincial EA for Anhui Province was conducted by the Hefei Design Institute (HDI), under the Ministry of Coal Industry. The Provincial EA for Shandong Province was conducted by the Shandong Scientific Research and Design Institute of Environmental Protection (SIEP), under the Shandong Provincial Environmental Protection Bureau (EPB) in Jinan. Both of the English versions of these EA reports were prepared with the assistance of the AC (Mott MacDonald and ERM International). The full Provincial EA reports cover the assessment of the environment impacts of the project components to be undertaken under the HRWPCP in each Provinces. The EA reports were prepared as Category B, as directed by the World Bank (WB). Full Resettlement Action Plans (RAPs) were prepared in each Province and the findings incorporated into the EA reports. The EA reports were prepared in both Chinese and English versions. The Chinese versions of these EAs were submitted to the Chinese State Environmental Protection Agency (SEPA) for approval. Both the Anhui Provincial EA and Shandong Provincial EA were approved by SEPA in September 2000. The final English versions of the provincial EAs were submitted to the WB in August 2000. 2 HUAI RIVER BASIN 2.1 General The Huai River Basin lies across four provinces in the centre of China, covering an area of 270,000 km2 between the Yangtze and Yellow Rivers and the Yellow Sea. The Basin is divided into two major systems: (1) The Huai River System (190,000 ki2), originating from Mt.Tongbo in Henan Province and about 1,000 km long with 120 tributaries, flows east through Anhui Province to Hongze Lake, through Jiangsu Province and discharges into the Yangtze River. (2) The Yi-Shu-Si River System (80,000 km2) originates in Shandong, flows south to Jiangsu Province and discharges into the Yellow Sea. The Grand Canal in the east connects the Huai River and Yi-Shu-Si systems as well as the Yangtze and Yellow Rivers. The economic and environmental impacts of water pollution on the Huai River Basin area are widespread and acute. In 1994, severe water pollution caused temporary production stoppage at many factories and drinking water problems for many inhabitants in the Huai River Basin. The 1994 Huai River pollution incident was caused by the discharge of polluted wastewater from many straw pulp factories, paper mills, and tanneries in Henan Province and Anhui Province located in the upstream portion of the Ying He River. These industries discharged a great quantity of polluted wastewater during the dry season when river control gates were often closed; 60-70 % of the annual river flow occurs during May-August time period, the gates are closed during the dry season for storage purposes. During the flood season the river control gates were opened releasing the concentrated stored pollution. This sudden increase in pollution of downstream sections of the Ying He River caused power station malfunction and consequently major impacts on the Hua Dong power network. Furthermore, fishery resources were destroyed and agricultural and industrial damages were widespread. Urban water sources were also affected resulting in significant shortages for the S-1 September 2000  Huai River Water Pollution Control Project Environmental Assessment Summary inhabitants of the downstream cities. Direct economic damages were estimated at over one billion yuan. Consequently the State Council authorised various actions to combat water pollution and prevent future pollution disasters in the Huai River Basin. The central government approved the "Ninth Five- Year Plan (1996-2000) of Water Pollution Control" (WPCP) in June of 1996. The WPCP defined targets for the Huai River Basin as follows: * By 1997, all the wastewater discharges from industrial pollution sources should meet standards for effluent and the total Basin COD should be reduced from 1.5 million tons in 1993 to 0.89 million tons (including 0.207 million tons from Anhui Province and 0.264 million tons from Shandong Province); * By 2000, the total Basin COD should be reduced to 0.368 million tons (including 77,000 tons from Anhui Province and 64,700 tons from Shandong Province); * By 2000, the Huai River mainstream, main tributaries, and rivers that are sources for urban water supplies, should reach the Class m of the National Surface Water Standard. As part of the efforts of the State Council and the four Huai basin provinces (i.e. Henan, Anhui, Jiangsu and Shandong) to meet water pollution control targets, the Huai River Water Pollution Control Project (HRWPCP) is currently being prepared for Anhui and Shandong Provinces. At the request of the PRC, the WB has listed the proposed project in the lending programme for WB fiscal year 2001. Water pollution control in Henan and Jiangsu is being dealt with under separate programmes. As described below, despite significant efforts, including the closure of a large number of polluting industries, the targets listed above are far from being achieved, with provision of municipal wastewater control facilities in particular lagging far behind programme. This project will thus be a significant step towards achieving the proposed pollution reduction targets and, through the associated technical assistance activities, will help to provide the necessary skills and experience to execute further projects within the plan. 2.2 Anhui Province Anhui Province extends over the centre of the Huai River Basin. The Huai River mainstream flows through the centre of Anhui Province with major tributaries located both north and south. See Figure S-1 for the locations of the Huai River mainstream and major tributaries in Anhui and Shandong Provinces. (Note, all figures are located at the end of this Summary). The length of the mainstream of the Huai River in the province is 420 km and the length of the tributaries is 1,580 km. River pollution is mainly organic, with sections in urban reaches being more polluted than rural reaches, and pollution in tributaries being more serious than in the mainstream reaches. Anhui Province is approximately 139,400 krn2, of which 66,940 km2 is located within the Huai River Basin (24.8% of the total basin area). The total 1998 population of Anhui Province was 61.3 million, with 11.2 million in urban areas, of this, 34.7 million were within the Huai River Basin including 4.6 million in urban areas. S-2 September 2000  Huai River Water Pollution Control Project Figure S-1 Location of Project Sub-components , ~~BOHAI SEA NSN' ^\ J N AS ,~~~~S Or*z >_k