China - Shanghai Urban Environment Project : environmental impact assessment (Vol. 2 of 6) : Environmental assessment : summary report

E541 Volume 2 SHANGHAI WATER & ENVIRONMENT 1;hJ CONSTRUCTION COMPANY LIMITED SHANGHAI URBAN ENVIRONMENT PROJECT DESIGN, REVIEW AND ADVISORY (DRA) SERVICES Environmental Assessment SummaryReport .A7 w ,< X ~- r ,, , March 2002 &Binnie DH MaHVH sIcc FILLCP  Shanghai Urban Environment Project EA Summary Report SHANGHAI URBAN ENVIRONMENT PROJECT (SHUEP) Environmental Assessment SUMMARY REPORT List of contents Page 1.0 INTRODUCTION 1 1.1 Project Background 1 1.2 Basis for the EA 2 2.0 SHUEP PROGRAM 3 3.0 SHUEP FRAMEWORK ENVIRONMENTAL ASSESSMENT 3 3.1 Compliance with Shanghai Master Plan 3 3.2 Huangpu Riverside Development 4 3.3 Impact Assessment of APL Projects 4 4.0 PROJECT DESCRIPTION 7 5.0 ENVIRONMENTAL BASELINE 8 5.1 General setting 8 5.2 Climate conditions 8 5.3 Water resources, hydrology and quality 8 5.4 Vegetation 9 5.5 Aquatic life 9 5.6 Socio-economic environment 9 5.7 Water quality 10 5.8 Laogang landfill existing environmental conditions 10 5.9 Minxing WWTP site conditions 11 5.10 Old City green belt site conditions 11 6.0 ANALYSIS OF ALTERNATIVES 11 6.1 SSP3 siting and process design 11 6.2 Leachate treatment processes at Laogang landfill site 12 7.0 ENVIRONMENTAL IMPACTS AND MITIGATION 13 7.1 Impacts during construction phase 13 7.2 Water impacts 14 7.3 Air and odour impacts 15 7.4 Noise impacts 16 7.5 Sludge disposal impacts 16 Shanghai Academy of Environmental Sciences 1 March 2002  Shanghai Urban Environment Project EA Sutmmary Report 7.6 Resettlement and socio-economic impacts 17 7.7 Groundwater and soil impacts 18 7.8 Fly control 18 7.9 Cultural heritage 18 7.10 Pest management 19 7.11 Environmental mitigation measures 19 8.0 PUBLIC CONSULTATION 20 8.1 Public meetings 20 8.2 Public opinion survey 21 8.3 Public concerns and responses 21 8.4 Information disclosure 22 9.0 ENVIRONMENTAL MANAGEMENT AND MONITORING 23 PLAN 10.0 CONCLUSION 24 FIGURES Figure 1 Location of project components of SHUEP - 1 Figure 2 Wastewater management zoning of Shanghai Figure 3 Service areas of SSP 3 Figure 4 Location of Laogang landfill expansion Phase IV Figure 5 Layout of Shanghai Old City Greening Project Figure 6 Locations of WWTP's at Upper Huangpu Figure 7 Photographs of the existing Laogang landfill site Figure 8 Aerial view of proposed Minxing WWTP site Figure 9 Aerial view of proposed Zhuyuan WWTP site Figure 10 Site of proposed Minxing outfall on Huangpu River Figure 11 Sampling sections along the Huangpu River Figure 12 Sampling sections along Chang Jiang estuary Shanghai Academ.y of Environmental Sciences ii March 2002  ShaSghai Urban Environment Project EA Summary Repot Shanghai Urban Environment Project Environmental Assessment SUMMARY REPORT Shanghai, People's Republic of China (March, 2002) 1.0 INTRODUCTION 1.1 Project Background The Shanghai Municipal Government (SMG) is seeking the World Bank funding for its proposed Shanghai Urban Environment Project (SHUEP) through an Adaptable Program Loan (APL) facility of US$700 million in three phases between 2002 through 2010. The SHUEP will support financial, institutional and policy reforms for urban infrastructure development and management, and physical investments in wastewater treatment, municipal solid waste, urban infrastructure upgrading, urban environment and landscaping improvement, and Upper Huangpu river wastewater management (see Figure 1 for map of project components). The overall objective of SHUEP is through the effort of environmental improvement and institutional strengthening to help implement Shanghai's sustainable development strategy and to provide its citizens of over 13 million people and the greater Shanghai area with long and extensive environmental and urban infrastructure benefits. The specific components in APL 1, including wastewater, solid waste, urban upgrading, and institutional strengthening, have been identified, while those for the later phases have a broad framework but details are to be defined. In 2001, the SMG established and adopted an ambitious and forward looking Tenth Five Year Development Plan (2001-2005) for the city, with an aim to enhance the economic, financial, trade and manufacturing stature of Shanghai and to ensure Shanghai's position as a sustainable global competitive city-region and an international economic, trade and shipping centre at the heart of one of the country's most developed regions, the Yangtze River Delta. For the five year period, the Plan aims at maintaining Shanghai's economic strengths and robust growth, promoting Shanghai's service sector, improving Shanghai's environmental conditions towards a Liveable City, enhancing Shanghai's innovative capacities, strengthening urban management, and improving the quality and standard of living for its citizens. Continued improvements of urban environmental infrastructures and their management through policy and institutional reforms and physical investments are one of the corner stones for the successful implementation of the Tenth Five Year Plan and SMG's Long Term Development Strategy well beyond the Five Year Plan. Sector master plans for wastewater, solid waste and forestation/landscaping have been completed with specific policy and physical investment targets, which are expected to be approved by SMG soon. The current SHUEP fits well into the Tenth Five Year Plan and the Sector Master Plans, and the framework for the three-phased APL is consistent with and supports the city's long term development strategy and overall development, environmental protection and urban improvement objectives. Shanghai Academy of Environmental Sciences I March 2002  Shanghai Urban Environment Project EA Summary Report An Environment Assessment (EA) was conducted for each of the physical works in SHUEP Phase I as well as a framework EA for the entire SHUEP. The EA is to identify in early stage of potential environmental benefits and consequences of the project, propose measures to avoid, mitigate or otherwise compensate negative environmental impacts during construction and operation, and allow incorporation of mitigation measures into the project engineering design where appropriate. On the basis of the component EAs, which are expected to be approved by the Shanghai Environmental Protection Bureau (SEPB) in March 2002, a project wide environmental impact assessment (EIA) report and environmental management plan (EMP), collectively known as the EA documentation, has been compiled by the Shanghai Academy of Environmental Sciences (SAES), with the assistance from the project Design, Review and Advice (DRA) consultants, Binnie, Black and Veatch. This document is an executive summary of the EA documentation. 1.2 Basis for the EA The basis for the EA is: * Terms of Reference (TOR) for Environmental Impact Assessment on various components in the World Bank Financed Shanghai Urban Environment Project, (December, 2002); * Environmental Protection Law of the People's Republic of China (December,1989); * Guidelines for Environmental Management of Construction Projects (November 1996); * Operational Policies, Bank Procedures, and Good Practices OP/BP/GP4.01: Environment Assessment, the World Bank, (January, 1999), as well as other World Bank safeguards policies if triggered following an initial screening, such as pest management, cultural properties, involuntary resettlement, etc.; and * Feasibility study reports for physical works in project components, prepared by Shanghai Urban Construction Design and Research Institute, Shanghai Municipal Engineering Design and Research Institute, (December 2001 to January 2002). The environmental quality and discharge standards applied in this EA are determined based on the functions and zoning of the impacted area and as designated by relevant authorities. These standards are: * Surface Water Quality Standards, Class II for Yangtze river, and Class II, III, IV and V for different sections of Huangpu river and its tributaries; * Ambient Air Quality, Class II; * Urban Environment Noise Standards, Class I; * Soil Environmental Quality Standards, Class III; * Integrated Wastewater Discharge Standards, Class II; * Nuisance Odor Emission Standards, Class II; and * Industrial Enterprises Boundary Noise Limits, Class II. 2.0 SHUEP PROGRAM A preliminary framework S1HUEP program has been developed based on detailed studies of the priorities of urban environment infrastructure improvement needs and thorough consultation with relevant SMG agencies to ensure compliance with the city's long term development strategy, Shanghai City Master Plan, Tenth Five Year Plan and sector master plans. The SHUEP framework is summarized in Table 2-1. ShanghaiAcademy of Environmental Sciences 2 March 2002  Shanighai Urban Environment Project EA Summary Report Table 2-1 SHUEP Framework Objective I Policy Initiative | Physical Investments SHUEP Phase 1 (2002-2007) . Support wastewater, solid waste . Water conservation * Shanghai sewerage project Ill and landscaping master plans . User fees and waste (SSP 3) . Protect water resources in Upper reduction . Laogang MSW landfill extension Huangpu river * Contract service * Small scale wastewater treatment . Improve information management . Innovative project plants in Upper Huangpu financing . Old City greenbelt Independent mechanism . Technical assistance (training, for price setting asset management, permit trading, waste tariff, food waste disposal, environmental revolving fund) SHUEP Phase 2 (2003-2008) * Continue to support solid waste . Water conservation * Solid waste disposal phase 11 master plan program; (source separation, transport fleet * Support the landscaping and . Corporatisation of 50% upgrading, non-hazardous forestation master plan on outer of solid waste services industrial waste disposal) ring road . At least 20% private * Forestation (outer ring road) * Protect and upgrade historic areas participation in * Upgrading of Old City historical of the old city infrastructure projects area . Introduce new approaches for . Rural area wastewater treatment industrial area redevelopment and * Redevelopment of a large project financing industrial community . Technical assistance (capacity building, landscape management, sludge management, etc.) SHUEP Phase 3 (2006-2010) . Support industrial community . Corporatisation of 30- . Industrial community redevelopment and restructuring 50% of solid waste redevelopment 2 . Support CNG program in Shanghai services . Landscaping 3 . Upgrade wastewater treatment . Completion first stage . Wastewater treatment facilities facilities water conservation rehabilitation * Continue attracting . Technical assistance (capacity private funding in building, fuel restructuring, project financing issuance of municipal bonds, etc.) 3.0 SHUEP FRAMEWORK ENVIRONMENTAL ASSESSMENT 3.1 Compliance with Shanghai Master Plan As a long term development strategy, Shanghai has adopted a City Master Plan (1999-2020) which has been approved by the State Council, with an objective for Shanghai to become an international centre for economics, financing, trade and shipping. Shanghai's Tenth Five Year Plan (2001-2010) is part of the implementation of the long term strategy. SHUEP's goals and physical investments completely comply with the city Master Plan which calls for centralized sewage treatment, including centralized wastewater treatment for Upper Huangpu Catchment, to protect drinking water sources in upper and lower Huangpu areas and to protect the environment. Shanghai Academy of Environmental Sciences 3 March 2002  Shanghai Urban Environment Project EA Summary Report The solid waste component in SHUEP will not only support the Master Plan's requirements for environmentally sound disposal of municipal solid waste but also contribute to the protection of surface water quality and overall environmental and living conditions of Shanghai. The Shanghai City Master Plan includes greening and landscape in the inner city, ring road, and throughout the city with an ambitious goal of 35% green coverage by 2020. In all three phases, APL will fund greening and landscape components. The Master Plan also calls for preservation of the Old City and historical sites in Shanghai. APL will fund urban upgrading and in particular, the Old City preservation and improvement. The policy, financial, institutional and capacity building initiatives are an integral part of SHUEP and are the assurance for efficient and effective implementation, operation and sustainable development of urban environment infrastructure and management system. This complies with the policy spirit and principles of Shanghai City Master Plan as well as the direction of the city's reform. 3.2 Huangpu Riverside Development Following the successful development of the Pudong area, SMG has recently launched another enormous development program along the Huangpu riverside. The program is to convert a total of 5.83 km2 in four blocks of mostly industrial, dock, and warehouse land into financial, trade, tourist attractions and upper scale residential prime river side development with a total investment exceeding RMB100 billion. This is part of the long term development strategy and will help cement Shanghai position as an international economics, financial, trade and shipping centre in the 21 century. The riverside redevelopment program puts high demands on environmental quality, particularly Huangpu river quality and urban environment infrastructure. The riverside lands will become more environmentally sensitive. It can be expected that the water quality classification and river function zoning in the urban reaches of Huangpu river will become more stringent along with the progress of the riverside redevelopment. SHUEP will contribute to the improvement of water quality of the Huangpu River and environmental protection of the Shanghai area including the redevelopment zones. In fact, the Old City component, as well as urban upgrading and cultural site preservation, will be part of the redevelopment program. However, the construction and operation of SHUEP could also result in certain adverse impacts and the impacted area could extend to the riverside lands. Detailed impacts assessment with consideration of the sensitivity of future riverside redevelopment and land uses will be needed during site selection, engineering design, construction and operation of APL funded physical works, and design of mitigation measures. 3.3 Impact Assessment of SHUEP Projects 3.3.1 Air Quality Ambient air quality is a high priority issue for SMG. Air quality improvement components have been included in the later phases of SHUEP. These will include centralized space heating, and cleaner fuel such as compressed natural gas (CNG) for city buses and taxi, etc. Other components throughout SHUEP will also contribute to the improvement of air quality in Shanghai, such as Shanghai Academy of Environmental Sciences 4 March 2002  Shang1hai Urban Environment Project EA Summary Report landscaping and greening, solid waste collection, transfer and hauilinlg upgrading, industrial community redevelopment, etc. Construction of APL funded physical works will have impacts on air quality from such sources as air-borne dust. Such impacts are expected to be short-term and localized and can be controlled to acceptable levels with appropriate mitigation measures. Sludge disposal, solid waste collection, transfer and disposal can also generate nuisance odor affecting the immediate surrounding areas. 3.3.2 Water Quality The implementation of SHUEP will significantly reduce sewage discharge into the upper Huangpu River, through the city reaches and to the Yangtze river mouth, as well as Huangpu River tributaries. Together with the Tenth Five Year Plan, SHUEP is expected to significantly contribute to significantly reducing the pollutant load to the Huangpu River. As a result, Huangpu River quality is expected to meet Class IV standards in the middle to lower reaches and Class III in the upper reaches. The project will also contribute to the elimination of below Class V water bodies in all major waterways in Shanghai. While largely beneficial, SHUEP does pose potential adverse impacts to water quality. Large volumes of wastewater will be collected and, following the treatment, discharged in a single location. While the effluent will meet the discharge standards, which can still be several times higher than the surface water quality standards, the large volume of discharge will place substantial loads on the receiving water body. Careful selection of discharge outfall based on modeling and sensitive receptors assessment will be required each time such discharge is to be included in SHUEP. Other potential impacts to water quality include solid waste hauling by barge, sludge disposal, solid waste landfill leachate infiltration and drainage runoff, pesticide usage in green and landscaped areas, water front construction activities, etc. These adverse impacts can be controlled through analysis of alternatives, impacts assessment, and incorporation of appropriate mitigation measures into engineering designs. 3.3.3 Solid Waste Management By 2010, Shanghai plans to achieve 98% source separation of municipal solid waste, 20% recycling, 95% collection through compacted container trucks, 100% disposal in a sanitary and controlled manner, and 70% of night soil collected and disposed of through the municipal sewer system and sewage treatment facilities. SHUEP will be implemented in the same period and its municipal solid waste components will help in achieving these goals. 3.3.4 Ecological Conditions The urban environment improvement (greening and landscape) components in SHUEP will help improve the urban eco-environment and the living conditions. The benefits will primarily be demonstrated in the following areas: * Alleviation of the "heat island" effect in the city. The high population density, dense buildings and development, and industrial, commercial, transport and other major city activities are all among the cause of the serious "heat island" effect in urban Shanghai. Vegetation, especially large trees will be used to introduce micro-climates. Studies have shown that green space is capable of lowering the area ambient air temperature by 0.6