China - Guangxi Integrated Forestry Development and Conservation Project : environmental assessment (Vol. 1 of 2) : Environmental impact assessment report

E1392 v 1 Certificate of State Environmental Protection Administration Project Serial No. 0502 No. 2902, Grade A Guangxi Integrated Forestry Development and Conservation Project Environmental Impact Assessment Report Environmental Protection Research Institute of Guangxi Zhuang Autonomous Region November, 2005  Consigning Unit: Project Management Office of Guangxi Forestry Bureau Assessment Unit: Environmental Protection Research Institute of Guangxi Zhuang Autonomous Region Name of Project: Environmental Impact Assessment on Guangxi Integrated Forestry Development and Conservation Project Legal Representative: Li Min (Director) Examined and Approved by: Zhong Shanjin (Senior Engineer, with a Certificate of Personal Responsibility for Environmental Assessment (CPREA) No. A29020020 ) Verified by: Zeng Guangqing (Senior Engineer, with a CPREA No. A29020015 ) Person in Charge of the Project: Fan Zhenhui (Senior Engineer, with a CPREA No. A29020004 ) Division of Work Table for Report Compilers Name Professiona Number of Educational Period l Title CPREA Contents of Compilation Background of Work and Degree Fan Senior A29020004 Background of the project, Bachelor of 5 months Zhenhui Engineer policies, laws, rules and Environmenta regulations, environmental l Science impact analysis and measures of alleviation, conclusion and suggestions Luo Senior A29020006 General development situation Bachelor of 5 months Yaxue Engineer of natural environment and Atmospheric social economy, environmental Environment management and monitoring plan Yu Wanli Senior A29020014 Alternative analysis Bachelor of 1 month Engineer Atmospheric Environment Wen Professor Ecological Ecological impact, alternative Master of 1.5 Yuanguang Expert analysis Ecology months Huang Senior Forestry Project description Bachelor of 1 month yong Engineer Expert Forestry Zhao Senior Forest Comprehensive forest Bachelor of Tingkun Engineer diseases and disease and pest control entomology pests control expert Liang Assistant Public participation Bachelor of Jing Engineer informatics  Introduction Guangxi Integrated Forestry Development and Conservation Project is a project combined the functions of commercial timber forests and forestry ecological protection that is planned to be constructed with the funds of the World Bank. Construction contents consist four components: first, developing commercial timber forests; second, forestry ecological protection and management, including establishment of multiple-use protection forests and the management of degradation forests (by closure hills for forest natural regeneration), pilot trial of BioCarbon sequestration; third, strengthening protection and management of biodiversity in natural reserves in Karst areas; fourth, strengthening capability construction and project monitoring and evaluation. The implementation area of the project covers 48 counties, cities and districts. There are 38 counties (cities), 13 state-owned forest farms will participate in the component of commercial timber plantation establishment; 25 counties will participate in the component of forestry ecological protection and management, 4 forest farms will participate in the planting material development; 5 natural reserves will participate in the component of protection of biodiversity in Karst areas. The implementation period of the project will be 6 years. Total cost of the project construction is 1,574.25 million yuan, including World Bank loan of US$100 million (converted to RMB 809 million yuan), 51.39% of the total investment, which will be used for establishment of commercial timber plantation; GEF grant of US$5,208,600 (converted to RMB 42,137,700 yuan), 2.68% of the total investment, which will be used for protection of biodiversity in Karst areas; domestic counterpart fund will be 723.1157 million yuan, 45.93% of the total investment. According to Environmental Impact Assessment Law of P.R.China and related laws, as well as related environmental assessment requirements of the World Bank, the environmental assessment of the project will be carried out  in light of Category B. Both People's Government of Guangxi Zhuang Autonomous Region and the World Bank pay close attention to the environmental assessment of the project, even at the preparatory stage of the project, the work of environmental assessment has begun. In January of 2005, an expert seminar for preparatory work of "Guangxi Integrated Forestry Development and Conservation Project" was held jointly by the project manager of the World Bank Office, Beijing and Guangxi Forestry Bureau in Nanning, six experts of environmental assessment come from home and overseas were invited to carry out environmental assessment of the project. At the same time, as an environmental impact assessment unit for "Guangxi Integrated Forestry Development and Conservation Project", Environmental Protection Research Institute of Guangxi Zhuang Autonomous Region was entrusted by Project Management Office of Guangxi Forestry Bureau in February of 2005 to compile a project environmental impact assessment report. After accepting the task, Guangxi Environmental Protection Research Institute began to work out their work plan and carry out on-the-spot investigation according to the requirements of environmental assessment of the project. Project environmental assessment experts jointly drew up work outline for environmental assessment and environmental management, they also made investigation in some project cities, counties and districts, such as Cenxi City, Huangjiang County and Xingbin District. After soliciting the opinions from the public participation, investigating in environmental situation in project areas and collecting sufficient data, the experts made analysis and assessment, then a draft of environmental impact assessment report on "Guangxi Integrated Forestry Development and Conservation Project" has been completed in June of 2005. When going through procedures of soliciting the opinions of the environmental protection bureaus and forestry bureaus of project cities, counties and districts, as well as having been assessed, examined and discussed by the experts organized by Environmental Protection Bureau of Guangxi, the report has been revised, at last, the official Environmental Impact Assessment Report has finished. 2  Content Environmental Impact Assessment Report.......................................1 Division of Work Table for Report Compilers.............................................................. 1 Introduction and Project Background .........................................................................................1 1.1 Project Origin ..............................................................................................................1 1.2 Purpose of Making EA Report.................................................................................3 1.3 Brief Introduction to the EA Report .......................................................................3 1.4 Bases of Assessment ..................................................................................................4 1.5 Relation to Feasibility Study....................................................................................6 1.6 EA Team .......................................................................................................................6 1.7 Assessment Scope and Period Covered .................................................................7 1.8 Assessment Factors ....................................................................................................8 1.9 Assessment Categorization.....................................................................................11 1.10 Assessment Criteria ...............................................................................................11 1.11 Assessment Focus...................................................................................................11 1.12 Assessment Procedure...........................................................................................12 2 Policy, Legislation & Administration Framework ....................................................................14 2.1 Organizations and Administrative Framework...................................................14 2.2 Relevant National Policies and Strategies for Environmental Protection.....15 2.3 WB Requirements.....................................................................................................18 3 Project Description..................................................................................................................20 3.1 The Main Goals of the Project...............................................................................20 3.2 Project Objective.......................................................................................................20 3.3 Project Components .................................................................................................20 3.4 Project Distribution ..................................................................................................22 3.5 Technical design of commercial plantation and ecological forest management .........................................................................................................................23 3.6 Project Investment....................................................................................................25 3.7 Target of the project success..................................................................................25 4 Description of Existing Environment........................................................................................26 4.1 Ecological Environment..........................................................................................26 4.2 Physical Environment..............................................................................................27 4.3 Social Development .................................................................................................30 4.4 Economic Development..........................................................................................31 4.5 Land Tenure and Ownership...................................................................................31 5 Public Participation ..................................................................................................................33 5.1 Consultation Methods and Subjects......................................................................33 5.2 Public Participation Consultation Results Analysis and Public Ideas ...........34 5.3 Information Disclosures and Feedback................................................................38 5.4 Conclusions of Public Participation Process.......................................................38 6 Analysis of Alternatives............................................................................................................40 1  6.1 Introduction................................................................................................................40 6.2 Analysis of different environment impacts resulting from "with project" or "do nothing".........................................................................................................................40 6.3 Analysis of Project Implementation Design .......................................................42 6.4 Comprehensive Evaluation.....................................................................................46 7. Environmental Impacts Analysis & Proposed Mitigation Measures........................................47 7.1 Environmental Impacts Summarization...............................................................47 7.2 Commercial Timber Plantation Establishment Component.............................47 7.3 Impacts of Eucalyptus Plantation on Environment and Mitigations Analysis.................................................................................................................................52 7.4 Ecological Forest Management Component.......................................................56 7.5 Biodiversity Conservation Component................................................................56 7.6 Risk Analysis and Prevention Measures..............................................................57 8 Environmental Management and Monitoring Plan ...................................................................61 8.1 Implementation Organizations and Responsibilities.........................................61 8.2 Environmental Monitoring Plan............................................................................76 8.3 Environmental Training/Institutional Strengthening Plan................................90 8.4 Budget.........................................................................................................................91 9 Conclusion and Recommendations...........................................................................................94 9.1 Conclusion..................................................................................................................94 9.2 Recommendations ....................................................................................................95 Annex Entrustment Letter Tables and other information (refer to the file s of appendix) 2  1 Introduction and Project Background 1.1 Project Origin 1.1.1 The Project Background Guangxi Zhuang Autonomous Region (GZAR) is located in the south part of China, with Yunnan & Guizhou Plateau to the west, Nanling Upland to the north and the North Bay to the south. Twelve nationalities like Zhuang, Han, Yao, Miao and Dong and so on are living together here. GZAR is the only ethnic minority autonomous region that borders sea, border and river, and is considered as one of 12 western provinces (regions) of PRC. The county level regionalism of GZAR is 109 counties (city or district at county level), among which, 49 are poor counties with 28 of national poor counties. The population of GZAR is 48.89 million with 18.68 million of ethnic groups. In 2004, the gross product of GZAR is 33.2 billion yuan with the average per-capita of 7,196 yuan, ranking as the 28th of all the provinces in China. Now there still are 1.08 million people can't have enough food and clothing, 4.95 million people are poor population with low income. GZAR is a province (region) mainly is mountainous area. Forestry lands of GZAR are 13.66 million ha, forested areas are 9.81 million ha, forest coverage is 41.33%, standing timber stock volume is 403 million cubic meters. GZAR, bordering Tropical Ocean to the south, has a sub-tropical monsoon climatic regime with sufficient rainfall. Rainy season and hot season in GZAR almost occur at the same time, providing favorable combination of water and heat unit availability for plant growth. GZAR is the crucial part of "South Use" in implementing the development strategy layout of "East Expand, West Control, South Develop, North Cease" in national forestry. In 2001, GZAR finished forestry zoning management division, which vigorously advanced the construction of forestry ecological system and industry system. Hereafter, GZAR also strengthen the construction of key ecological projects like Land Conversion Project, the Shelterbelt Program for the Pearl River Valley, the Coastal Shelterbelt Development Program, Wildlife Conversion Project and Nature Reserve Management Project and so on. In order to speed up the development of forestry, improve eco-environment and help the mass in mountainous areas eliminate poverty, from the year of 2001 to 2005, GZAR developed fast-growing and high-yielding timber plantation at the speed of average annually developed 1,330,000 ha that never had before. Project construction also is the concrete measure to assort with the construction of ecological province, in order to realize ecological GZAR and enrich GZAR. As to raise money and increase development strength, in 2003, Forestry Bureau of GZAR lodged application to Development and Reform Commission of GZAR and Finance Bureau of GZAR and applied for the implementation of Guangxi Integrated Forestry Development and Conversion Project (GIFDCP) to State Development and Reform Commission and Finance Ministry. Water and soil erosion and stony desertification are the serious ecological problem in GZAR. The total area suffering water and soil erosion is 3.06 million ha, taking up 12.9% of the total area of GZAR. Meanwhile, it is one of the provinces (districts) suffering serious stony desertification in southwest of China, with an area of 7.88 million square meter, taking up 33% of the total, and the stony desertification is particular serious in Red River Basin, Left River Basin and Right River Basin. GZAR is one of the Province having very diverse wildlife communities. There are 8,354 known wild vascular plant species and 884 wild terrestrial 1  vertebrates, with a lot of special species as well as rare and precious species. The karst topography of GZAR is the most typical and most centralized in the China and even in the world, including many unique biological types. Many special species in GZAR is of fatally scientific significance and inheritance resource value, with globally significance. However, as the increase of population and the misuse of land, many species and their environment had been destroyed, suffering danger and even on the verge of extinction. Taking account ecological forest management and biodiversity conversion in karst areas into the implementation of the project to embody multiple and furling integrated benefits, is the hope of GZAR and the request of the World Bank. 1.1.2 The Experience in Implementing World Bank(WB) Loaned Plantation in GZAR (1) Experience in developing multi-purpose forest and environment and biodiversity conversion. During afforestation in NAP, mixed forest was established based on actual conditions with camellia oleifera, Pinus massoniana and other broadleaf species as the main tree species for mixed forest. Broadleaf forestland could not be encroached for establishing Eucalyptus pure forest. Besides, a number of measures were taken to prevent/reduce the negative impacts of afforestation on biodiversity, e.g.: 1) Carefully selected plantation sites, protecting existing vegetation; 2) Constructed a mixed forest by properly distributing material forest base; 3) Selected appropriate site preparation methods based on landform and physiographic features of plantation sites, matching species with site; 4) Allow for regeneration after harvest, using relay cropping with other tree species; and 5) Continue to carry out an intensive management and tendering. The above combination and distribution of plant was found conducive of improving quality of forest stand and ecological environment, and decreasing negative impacts of plantation base on biodiversity. (2) Experience in water and soil control, and soil productivity Protection. The approaches were: 1) During the plantation design, peripheral vegetation of forestland was retained as much as possible to increase biodiversity; 2) Regulated that reforestation could only be carried out three years after harvest when fallen leaves and branches turned decomposed; 3) During afforestation, applied compound fertilizer with P as the majority fertilizer; 4) Reasonably design plantation density to maintain that there are enough herbage coverage under the forest; and 5) Not to clear deadwood and defoliation, leaving the slash retained in forestland. These measures maintained the long-term soil production in forest stand. (3) Experience in Pest and Disease Control in Forestland. In artificial afforestation, inter-planting with other tree species and planting of more mixed forest assist in (1) development of mixed shrubbery and herbaceous under story on the forest floor, (2) maintaining stable biodiversity, (3) enhancing timber forest's ability to resist ecological risks, (4) enhancing the ability to resist against pests and diseases, and (5) reducing occurrence of plant diseases; while planting with clones, a number of clones should be used to prevent mono products that causes reduced plant resistance to diseases. The project planning and plantation mode design should learn from the successful experience and scientific achievements of NAP, FRDPP, and FDPA to adopt more appropriate and scientifically based measures to decrease the negative impacts on environment. 2  1.1.3 Significance of Project Construction The GIFDCP is the key project during GZAR implementing forestry sustainable development. The project complied with Guangxi Eco-Environment Construction Program, Guangxi Forestry, the Eleventh Five-Year, and Development Plan of 2020 and Guangxi Ecological Province Construction Plan, through the construction of intensive management commercial timber plantation base to develop forest resource, in order to quickly and efficiently increase timber supply and reduce the fell of natural forest; realize forestry and wood processing industry sustainable development and enhance forestry economic strength; through the management of ecological forest to improve the shelterbelt system of the Pearl River Basin; carry out globally significant biodiversity conservation in karst areas and establish the management mode of community participation and condominium, in order to realize the purpose of biodiversity conservation and eco-environment management. To realize the synchronous advancement of conservation, development, resources utilization and income increase of farmers, and establish demonstrative mode for forestry sustainable management in Guangxi and even in the southwest of China, is of great significance. With the implementation of the project: 1) to meet the market demand for timber supply; ensure the sustainable supply of raw materials for forest product processing industry, protect the natural forest and realize the benign circulation and sustainable development of forestry economy; 2) to introduce into the management mode and advanced technology of international ecological project construction, which will have positive impact and promotion on the forestry ecological construction in Guangxi; 3) to use multi-purpose forest as the carbon sequestration, test and carbon trade pilot test forest, which set up standard for World Bank and China to establish operation mode of carbon trade and carbon exchange; and 4) to introduce into international advanced artificial plantation and nature reserve construction technology, management mode, monitoring methodology and etc, so as to improve forestry management technology and management level. 1.2 Purpose of Making EA Report The aims of this EA report include: Qualitative analysis and assessment of present natural environment and the socio-economic conditions in the project area and determine the scope and extent of future impacts. The implementation of the project is reviewed and examined in terms of environmental protection; To determine the potential environmental impacts and to disseminate the findings to the project development and implementation teams; and prepare mitigation measures to reduce/eliminate the identified potential negative impacts and prepare an environmental management and monitoring plan (EMMP) for pre-implementation, implementation and operation of the project. 1.3 Brief Introduction to the EA Report 1.3.1 Importance of the Project The GIFDCP project areas are located in Southern China where the ecological and social environment is rather sensitive. There are many minority nationalities that make up about 38% of the total population of GZAR. Natural forests are somewhat degraded due to both poor management and over use, resulting development of areas of low productivity and/or degraded forests in the project counties. The project areas are economically less developed compared to the rest of the PRC and integrated projects such as GIFDCP could have significant effect in 3  improving the opportunities for betterment of the livelihood of the project beneficiaries. Implementation of the proposed project could have significant impact on methodology used to improve the status and quality of forest resources (both natural and planted) and forest related natural resources (water and soil resources use efficiency). In addition, other people living within the neighboring counties could also adapt the lessons learned from the project implementation that could provide additional intangible project benefits. 1.3.2 Structure of the Report The report provides an assessment of the environmental impacts of the development of GIFDCP. It is arranged in the format provided by the World Bank for rural development projects and slightly modified to include, as much as possible, the additional environmental requirements of the PRC. Chapter 2 describes the institutional and administrative framework and the national policies and strategies in relation to such development schemes. Chapter 3 provides a description of the proposed development project, while Chapter 4 provides a description of the existing physical (natural), ecological and socio-economical environment, which is specific to the proposed project and neighboring areas. Chapter 5 describes the public participation whereas Chapter 6 describes the alternatives that have been considered in the project planning process. Chapter 7 identifies the potential impacts that could be expected from the proposed project both during implementation and operation and proposes viable mitigation measures for to minimize these impacts. Chapter 8 is devoted to the presentation of an environmental management and monitoring plan (EMMP) for the proposed project including the implementation framework, mitigation plan, monitoring plan for the pre-implementation, implementation and operation periods and a training plan, while Chapter 9 presents the general conclusions and recommendations. In addition two annex figures, three annexes and nine appendixes had been included. 1.4 Bases of Assessment This assessment was carried out according to the laws and regulations of the People's Republic of China (PRC) and the World Bank technical documents. A list of the material used for the preparation of this report is presented below. 1.4.1 Laws and Regulations The Law on Environmental Protection (December 1989); Water and Soil Conservation Law of the PRC (June, 1991); Regulations on the Management of Environmental Protection in Construction Projects (State Council Decree No. 253 of 1998); Circular on Strengthening EIA Management in Construction projects Financed by International Financial Organizations (NEPA, June 21, 1993): The Administrative Rules of the Water & Soil Conservation Law of the PRC (June, 1991); The Administrative Rules of The Land Administration Law of the PRC (August, 1998); The Land Administration Law of the PRC (January,1999); Administrative Regulations of Environment Protection for Development Projects (The State Council Decree No.253, November, 1998); List of Construction Project Environmental Protection Classification Management (Order No. 14 of SEPA, October 2002); Proposal on Strengthening Ecological Protection Work (SEPA, Order No.785, November 1997); 4  The Regulations on Nature reserves of the PRC (The State Council Decree No. 167, September 2, 1994); The Regulations on Protection of Wild Flora of the PRC (The State Council Decree No. 204, September 30, 1996); Notice on Further Strengthening the Administration of Nature reserves in the PRC (The State Council, No.111, 1998); Stipulations on Environmental Administration Issues for Development Projects (State Environment Development (88) No.117); Forestry Law (September 1984); Guangxi Environmental Protection Regulations. 1.4.2 WB Requirements 0.D4.01 The World Bank Environmental Assessment Guideline; 0.D4.01 The World Bank Business Guideline 1.4.3 Technical Documents Technical Guideline for Environmental Impact Assessment (HJ/T2.1-2.3-93); Technical Guideline for Environmental Impact Assessment Non-pollution Biological Impacts (HJ/T19-1997); Synthetic Management Criterion for Water and Soil Conservation (GB/T16453.1-16453.6-1996); Technical Criterion of Water and Soil Conservation for Development Construction Project (SL204-98); The World Bank Operational Policy 4.01 (Environmental Assessment), 4.04 (Natural Habitat), 4.09 (Pest Management), 4.11 (Cultural Property), 4.36 (Forestry); the World Bank Policy on Disclosure of Information; and Terms of References (TOR) for an Environmental Assessment of the GIFDCP. 1.4.4 Documents Related to Project Construction Guangxi Integrated Forestry Development and Conservation Project Suggestion Note; Guangxi Integrated Forestry Development and Conservation Project Implementation Plan/Feasibility Study Report; Guangxi Integrated Forestry Development and Conservation Project Identification Mission Aide-Memoire (Sep, 2004); Guangxi Integrated Forestry Development and Conservation Project Aide-Memoire ---Small-Preparation Mission (May, 2005); Guangxi Integrated Forestry Development and Conservation Project Aide-Memoire ---Preparation Mission (July, 2005); Terms of References (TOR) for an Environmental Assessment of the GIFDCP. 1.4.5 Principle of Environmental Impact Assessment This EA has been prepared to satisfy the requirements of the World Bank, State Environmental Protection Administration (SEPA) and Guangxi Environment Protection Bureau (GEPB) on environmental impact assessment of development projects. The principles of the sustainable development objective and scientific evaluation are followed in the EIA Since the project is generally a natural resource (forest) improvement project and does not 5  include any major construction activity or clearing of natural forest or pristine, high biodiversity shrub land/grassland, it is classified as a Category B project according to the World Bank Operational Policy (OP 4.01). Therefore, the EA is carried out in a "simplified way" with main attention of the study being on the significant environmental issues (SEI) likely to be caused by the project. This assessment was made based on the consultations with the World Bank consultants, Chinese Environmental specialists and GEPB. An assessment method of environmental matrices is used for this EA. This method has been widely used in the environmental assessment of various projects since proposed by Leopold, et al. 1 (1971). An environmental matrix employs a list of project activities and a list of environmental parameters or impact indicators. The two are related in a matrix in order to identify cause