China - Second Liaoning Medium Cities Infrastructure Project : summary environmental assessment report

38422   This document has been produced by the Consortium SOGREAH Consultants as part of the FASEP Grant (French Government Grant) to Liaoning Provincial Government (Job Number 1350185) This document has been prepared by the project team under the supervision of the Project Directorfollowing Quality Assurance Procedures of SOGREAH in compliance with ISO9001. Index - A Index DISTRIBUTIONLIST CONTACT ADDRESS 1 LUCRPO(Liu Jinxing, Zhao Wei, Liu sam-hel977@sina.com, Dong) mailxiewei@sina.com 2 DGTPE/ME thomas.clochard@dgtpe.fr claude.foulon@missioneco.org 3 The World Bank (Mr. Greg Browder) gbrowder@worldbank.org csun@worldbank.org 4 SOGREAH (Head Office, SOGREAH alain.gueguen@sogreah.fr China) gmoys@sogreah.com.cn _____s   1. Introduction ............................................................................................................................................... 1 I.1. General................................................................................................................................................ 1 1.2. ProjectOrganization............................................................................................................................ 2 1.3. Backgroundto EnvironmentalAssessment Studies........................................................................... 2 1.4. Overview of Environmental& Social Safeguards Documentation...................................................... 3 2. Project Components Description ........................................................................................................... 4 2.1. Summaryof LMC-2 Components....................................................................................................... 4 2.2. Water SupplySector........................................................................................................................... 8 2.3. WastewaterSector.............................................................................................................................. 8 2.4. SolidWaste Sector.............................................................................................................................. 9 2.5. Summary of LMC-2 Cost Estimate................................................................................................... 11 2.6. LMC-2ImplementationSchedule...................................................................................................... 12 3. Environmental BaselineSituation ........................................................................................................ 14 3.1. PhysicalSetting................................................................................................................................. 14 3.2. EcologicalSetting.............................................................................................................................. 15 3.3. Social & EconomicSetting................................................................................................................ 16 4. ImpactAssessment and Mitigation ...................................................................................................... 17 4.1. Anticipated Benefitsfrom LMC-2...................................................................................................... 17 4.2. ImpactsAssociatedto Project Location............................................................................................ 18 4.3. Impacts& MitigationsAssociatedto Construction Activities ............................................................ 20 4.4. Impacts& MitigationsAssociated to Operation Phase..................................................................... 22 5. Analysis of Alternatives ......................................................................................................................... 25 5.1. With and Without LMC-2 Project....................................................................................................... 25 5.2. Water Supply Components............................................................................................................... 25 5.3. Wastewater Components.................................................................................................................. 26 5.4. Solid Waste Components ................................................................................................................. 26 6. Public Consultation & Information Disclosure .................................................................................... 27 7. Environmental Management Plan ......................................................................................................... 31 7.1. Organization...................................................................................................................................... 31 7.2. Activities ............................................................................................................................................ 32 7.3. Capacity Building .............................................................................................................................. 33 7.4. costs ................................................................................................................................................. 33  Table 1 : Summaryof LMC-1 Sub-components................................................................................................ 5 Table 2: Wastewater Flows & Distribution EnteringWWTPs............................................................................ 9 Table 3: MainCharacteristics of Solid Waste Sub-Components.................................................................... 10 Table4: LMC-2Cost Estimate........................................................................................................................ 11 Table 5: Main Climate Parameters in ProjectArea ......................................................................................... 14 Table 6: PollutionAbatementAssessment (mg/l) ....................................................... .............................. 18 Table 7: Summary of Public Consultation and InformationDisclosure........................................................... 28 Table 8: Summaryof Budgetsfor Sub-project's Construction................................................... Table 9: Summary of Budgetsfor Sub-project's Operation............................................................................. 34 Figure 1: Flow chart of environmental & social safeguard document preparation............................................ 3 Figure2: Project Location.................................................................................................................................. 4 Figure3: Summary5-years Implementation Program.................................................................................... 13  BOT Built, Operate & Transfer ConsolidatedEnvironmentalAssessment csc CEA ConstructionSupervision Company CSEMP ConstructionSite EnvironmentalManagement Plan DI Design Institute DRA Design Reviewand Advisory (services) EA EnvironmentalAssessment EMP EnvironmentalManagement and Monitoring Plan EPB EnvironmentalProtection Bureau (of SEPA) FSR FeasibilityStudy Report IA ImplementingAgency GHG Green House Gases LMC-1 Liaoning Medium Cities Project- Urban Transportation LMC-2 Liaoning Medium Cities Project- Urban Environment LRB Liao River Basin LRBP Liao River Basin Project LUCRPO Liaoning Urban Construction Renewal Project Office NCP NuisanceControl Plan PAP ProjectAffected Persons PMO Project ManagementOffice PPE PersonalProtective Equipment PRC People's Republic of China RAP ResettlementAction Plan SElA Summary Environmental ImpactAssessment SEPA State EnvironmentalProtection Administration SRS StandardSite Inspection Review Sheet WB World Bank WTP Water Treatment Plant WWTP Wastewater Treatment Plant MU Area Unit (0.0667 ha) RMB ChineseYuan (Renminbi) USD United States Dollar Conversion rate: 1 USD = 8.0 RMB Db decibel ha hectare mg/L milligram per liter km kilometer km2 square kilometer m2 square meter mm millimeter m/s meter per second m3/day cubic meter per day UY ton per year A2/0 Anaerobic-anoxic-oxic biologic phosphorus & nitrogen removal BOD5 BiochemicalOxygen Demand (5 days) COD Chemical Oxygen Demand COD Cr COD measuredthrough reduction with dichromate acid  COD Mn Permanganateindex NH3-N Ammonia Nitrogen NO2 ss Nitrogendioxide Suspended Solids TP Total Phosphorus TSS (or TSP) Total SuspendedSolids (or Total Suspended Particulates)  Liaoning province covers a total area of 145,900 km2 and has a total population of about 42 million. The province has jurisdiction over 14 cities, 17 county level towns and 17 counties. The provincial capital is Shenyang. Liaoning is a coastal province in the southern part of NortheastChina and is a key link between China's northeast economic zone and the Bohai Sea Rim economic zone. The Liao River Basin within Liaoning, covers an area of 42,000 km2of which 27,000 km2form the Huntai River Basin (Hun and Taizi rivers') and the remaining 15,000 km2belongto the Liao river catchment proper. These three main rivers flow in an approximately Northeast-Southwestdirection across the province.The LRB is since long recognized as one of the most environmentally degraded basin within China, and the State Council has declared pollutioncontrol and other environmentalimprovement measures as a key national priority. The lack of proper water resources management in the LRB, particularly the lack of provision for treatmentfacilities of wastewater from various sources, associated with the lack of dilution of wastewater and assimilative capacity for the contaminants in the LRB rivers, mainly during the ice-bound period, have resulted in severe pollution of surface water. During the dry (cold) season, over 93% of surface water bodies exceed Category V of national surface water quality standards by sometimes up to 27 times standard values. The effect of poor water quality on the local economy is even exacerbated by the limited water resources available in the basin when compared to its high density of population. Although 81% of surface water resources and 43% of groundwater resources are utilized, water supply cannot meet the demand. At present, the annual water supply is about 7.8 billion m3 while the demand is 8.3 billion m3, leaving 500 million m3water supply deficit each year in the province. Average surface water resources in the Basin are estimated at 535 m3per capita, which is about 23% of the national average. The contamination of groundwater results from the pollution of surface water with public health risk through water supply. There are an estimated I 12,400 village residents drinking polluted groundwater in the cities concerned by the LMC-2. This sensitive situation has for some time been put under consideration at the highest level of the State. The Liaoning Provincial Government established under the direction of the Vice- governor a Leading Group to prepare and submit to the State Council an outline master plan summarizing the approach to be adopted in the control of water pollution within the Liao River Basin. The urgent nature of the environmental problemswithin Liaoning Province has prompted the identification and establishment of a major environmental program funded by the European Union (EU) in 1998, known as the Liaoning Integrated Environmental Program (LIEP). In 2006, the LiaoningGovernment publishedthe "Eleventh-fiveYear Planfor Environmental Protectionin Liaoning Province" which provided a comprehensive framework for water pollution prevention including industrial pollution control, water pollution prevention in Liao River Basin and the Bohai Sea, provision of wastewater treatment, agricultural pollution control, enhancement of ecological environment management,and institutionalstrengthening and training. The World Bank has strongly contributed to the environmental efforts in Liaoning, particularly in the Liao River Basin, with a continuous financial support in the development of environmental works associated with wastewater treatment, water supply and municipal solid waste disposal: The Liaoning Environment Project (Loan US$ 110 million, 1994-2002) and the Liao river Basin 'Aftertheir confluence,the resulting river is called the Daliao River until it reaches the Bohai sea at Yingkou  Project (Loan US$ 100 million, 2001-2007). Following discussions held early 2005 between the Ministry of Finance and the World Bank, the Liaoning Medium Cities Urban Infrastructure Project - Phase 1 has been selected for inclusion into the WB loan program of fiscal year 2006/7. The urban environment components part of the project (LMC-2) includes 12 sub- components (5 for water Supply, 3 for solid waste, 4 for Wastewater, including 1for wastewater associated with river works) distributed over 7 cities (Anshan, Fushun, Gaizhou, Haicheng, Panjin, Xingcheng and Yingkou). The LMC-2 should be implemented over 5 years from July 2006 to June 2010. Furthermore, the Bohai Sea is a part of the coastal waters of China, a marginal semi-closed water body in the west part of the Pacific Ocean that connectswith the Yellow Sea via the Bohai Strait. The total Bohai Sea area is 77,000 km2, with an average depth of 18 m. More than 1,000 km2is affected by the red tide phenomenon principally in vicinity of Liaodong Bay where the polluted waters of the Liao river basin are discharged. Pollution deterioration of the Bohai seashore area results in frequent red tides, deterioration of ocean environment, decline of wetland and species and decline of fisheries. LMC-2, like the Bank's previous urban environment projects, will contribute to a reduction in pollution load into the Liao River Basin that discharges into the Bohai Sea. The Liaoning Urban Construction Renewal Project Office (LUCRPO) has been designated by the Province as its representative for matters pertaining to the loan (application and administration). LUCRPO appoints technical assistance (TA) consultants for the project, selects the Tendering Companies, and upon recommendation of the technical assistance consultants, designates the ConstructionSupervisionCompany. At provincial level, several agencies are involved at various degrees of responsibilities: Provincial Planning Commission, Finance Department, Construction Department, Provincial EPB, Water Resources Department (WRD), Provincial Geology and Mineral Bureau (GMB), Provincial Public Health Bureau. At municipal level the provincial Audit Bureau has delegated the audit responsibility to the MunicipalAudit Bureaus. All project cities are municipal level city excluding Haicheng. Anshan Municipal Audit Bureau will be the responsible agency for Haicheng City. Each project City has its own Leading Group and that group works through a Local Project Office, which representsthe Project City or the Municipality. The Project technical and financial preparation was carried out by Chinese local organizations and has been supported by various sources of international assistance including SOGREAH, the Design Review and Advisory (DRA) Consultants to the LUCRPO and the Project Management Office (PMO) responsiblefor the overall preparation of the project. For the 12sub- projects, 3 Design Institutes (Dl's) were appointed by the various Sub-project Owners (POs) to carry out feasibility studies and to produce Feasibility Study Reports (FSR). The POs appointed the LiaoningAcademy of EnvironmentalSciences (LAES) to carry out all the individual EAs except the Solid Waste sub-component EA for Fushun (prepared by the Fushun Environmental Sciences Institute) and the Water Supply sub-component EA for Xingcheng (prepared by the Shenyang Environmental Sciences Institute). LAES was also appointed to prepare the Consolidated EA for LMC-2 as well as the 7 Environmental Management Plans (one per concerned city). The consolidated EA has been carried out strictly in accordance with National and Provincial laws, codes and criteria relating to environmental protection. It satisfies the Chinese EA system, whilst at the same time gives full attention to the requirements of the World Bank`s environmentalsafeguards, and more preciselythose of the Operational Policy4.01 for EA.  According to the World Banks safeguard policies, four documents are required by the World Bank for project approval to address the related environmental and social issues, that is, consolidated EA, EA summary, consolidated EMP and consolidated RAP. All these reports are prepared by SOGREAH based on the individual EA, EMP and RAP reports with the assistance of localconsultants.The flow chart of the whole process is shown in the following FIGURE1: FLOWCHART OF ENVIRONMENTAL& SOCIAL SAFEGUARDDOCUMENT PREPARATION  LMC-2 Project addresses 7 cities in Liaoning Province (Anshan, Fushun, Gaizhou, Haicheng, Panjin,Xingcheng, Yingkou) and 11 sub-components related to Water Supply (5), Wastewater (4), Solid Waste (3). As such, they all fit into the regional planning objectives to improve and develop environmental managementinfrastructuresin order to: meetthe increasingdomestic and industrialwater demand in the future; support urban growth and economicdevelopment; ensure a healthywater supplyto all; reduce rivers and marine pollution by domesticand industrialeffluentsand waste: @ improve populationhealth and quality of life. The project locations are listedas the following figure: FIGURE2: PROJECT LOCATION  The list of sub-componentsand their main characteristics are presented in the following Table 1. TABLE1:SUMMARY OF LMC-1 SUB-COMPONENTS - No Sector Project Description A4 ws Anshan Water Supply WTP and NetworkUparadina: - Upgradingof DazhaotaiWTP to remove iron and manganese, - 122 km of distribution pipeline extension, upgrading and rehabilitation, - Replacementof 65,000 water meters. - The total cost is estimated as 315.8 million RMB. F-I Fushun Solid Waste Expansion & Upgrading - solid waste collection, storage and transfer to disposal and upgrade 14existing old collectionstations - a sanitary landfill and associated leachate treatment / disposal facilities, with daily capacity of 600 tonlday and 20 years service life. - Pushasing 17 compact vehicles and 18 landfill operation machines. - The total cost will be 83.3million RMB. - The total land acquisition is 20 ha: the volume is up to 5.35 millionm3. F-2 ww FushunWastewater Proiect includestwo subcomponents:(1) Fushun Sewerage Upgrading,and (2) Fushun Integrated River Works (EasternPart of Hun River).The total cost is 242.8 million RMB. FushunSewerage Upgrading - Newly construct Liushan-Guchengzi Sewerage System: 12.636 km interceptorsand 3 pump stations. - Rehabiliate Urban Sewers/Channels: 16.901 km wastewater interceptors, 9.77 km open channels and 5.059kmsub-sewers; - Total cost for sewers rehabilitation is estimated as 37.1265 million RMB. Fushun Integrated RiverWorks - Flood Protection Embankment: construct concrete slat revetment along the river bank from the east of Tianhu Bridge tc the south of Zhangdang Bridge. Total length will be 8.1km anc cost will be 42.375 million RMB. - DrainageSystem: construct 5.54km sewer pipelines and 2 pumF stations. 17.25 million RMB. - Road Construction: 8.41km road from Tianhu Bridge tc Zhangdang Bridge, the total cost is estimated as 69.22 millior  GaizhouWastewater Proiect - 50,000 ton/day WWTP in Phase I, (to be enlarged in 100,000 ton/day in Phase II) - Newly construct 3.65 Km Interceptor - Upgrade/ newly construct 16.38kmSewers - Newly construct 1 Seweage Pump Station - The total cost is 142.2 million RMB. Haichena Water Supplv Uwrading: - Extend and upgrade Zhongyangbao Water Resouce with the extra increase of 10,000 m3/day,newly construct 3 wells nearby the plant so to enlarge the water production capacity from 20,000 m3/dayto 30,000 m3/day; - Entend Zhongyangbao Water Treatment Plant with the extra increase of 10,000 m3/day, so the water treatmect and distribution capacity can be increased from 20,000 m /day to 30,000 m3/day; - Extend and upgrade Xiangtang Miaoguan Water Resource, newly construct 13 wells and guarantee the water production capacity can be 60,000 m3/day; - Extend Yuhuangshan Water Distribution Plant from 40,000 m3/dayto 100,000 m3/day - Upgrade/ newly construct 74.1 km water distribution pipelines. - Install 25,000 water meters. - The total cost for this project is estimated as 136.4 million RMB. P-I Paniin zndWastewater Proiect: - 50,000m3/day Shuangtaizi Wastewater Treatment Plant in Phase I and 100,000 m3/dayin future Phase II, - 11.245 km interceptor sewers in Shuangtaizi for drainage of existing wastewater flows and future flows generated from new developmentto the east of this old city centre, - rehabilitation of 7.59km sewers (wastewater and stormwater) in Xinglongtai district to alleviateflooding, and - newly construct 1 pump station and rehabiliate 3 old pump stations in Xinglongtai district. - The total cost for this project is estimated as 351.6 million RMB. P-2WS Paniin Water Distribution Network Upgrading: - Pipeline Upgrading: 133.5 km Water Distribtion Pipeline Upgrading (87.54 million RMB) - Water Loss Monitoring Equipments: Purchasing 4 sets of water loss Monitoring Equipments and corresponding vehicles (2.42 million RMB) - Water Meters (and Meter Chambers): Install 205 bulk meters for  Residential Districts (0.08 million RMB); Replacement of 93,262 water meters and 6,217 underground meter chambers (33.13 million RMB) - The total cost will be 177.6 million RMB P-3 sw Paniin Solid Waste Treatment _I - solid waste collection, storage and transportation system: the new collection system is bag collection combined with solid waste station, and the transportation system is twenty 8-ton compactionvehiclesfor Phase I. - a new sanitary landfillsite and associated leachatetreatment - The total cost will be 241.9 million RMB. x-I ws Xinachena Water SUDDIVDistribution Umradina: - Upgrade24682.4 mwater distribution networks (DNI00-1000) - Construttwo boosting pump stations - Water meters system upgrading: install 2200 water meters and 220 meter wells. - The total cost is estimated as 45.9 million RMB. Y-I Yinakou 2"dWastewater Proiect: - 100,000m3/dayEastern Wastewater Treatment Plant (WWTP). The proposed WWTP is located in the waste evaporation reservoir of a abandoned salt plant, with the area of 8.71 ha. The ultimated planed capacityfor this plant is 300,000 m3/day. - Drainage and interceptor sewers in southern and eastern districts, 68.035 km. - Upgrade two pump stations and newly construct 6 pump stations - - The total cost is estimated as 478.9 million RMB. Y-2 sw - Yinqkou ED2 Solid Waste Treatment - A new sanitary landfill site and associated leachate treatment. The service life of the proposed landfill site will be 22 years with two phases,for Phase I (12 years' service life), the average daily waste production is 500 ton/day, and for Phase II (up to the woverall 22 year's life), is 680 ton/day. - Solid waste collection, storage and transportation system: the new collection system will be totally changed to bag collection system, and proposed to purchase twelve 8-ton compactors (4 times daily transportation)for Phase I and four 8-ton compactors (4 times daily transportation)for Phase II. - The closure and remediation of the existing dumping station close to the Bohai seashore. - The detailed designwill be with the help of GEF. - The total cost for this project is estimated as 113.7 million RMB. Y-3ws Yinakou Water SUPD~VUDaradina: - Contruct a 70,000m3/dWTP, located in a mountain 28 km away  to Shimen Reservoir. (This new resource is required because 90,000m3/dof existing Yangjiadian WTP will be transferredfrom Yingkou City to Yingkou EDZ.) - Construct corresponding raw water intake point in Shimen Reservoirand transfer pipelines31.3km - Upgrade water distribution system: newly construct 46.216 km and upgrade 13.351 km - Newlyconstruct reclaimedwater pipelinesfor 65.263km. - The total cost is estimated as 350.8 million RMB. According to the FeasibilityStudy Reports,the project will increasethe daily water supply by 130,000 m3 in Haicheng (30,000 m3 for Haicheng Zhongyangpu WTP and 100,000 m3 for Haicheng Yuhuangshan) from 2 wellfields located along the Haicheng river, and by 70,000 m3 in Yingkou from the Shimen Reservoir. Water treatment will follow conventionalsand filtration process, including successively degriting, aeration, sand filtration and chlorination. Sludge from backwash water settling tank will be thickened and dewatered by belt press before safe disposal in a landfill. During feasibility studies, hydro-geological and hydrological evaluations were performed in order to assess the suitability (quality and quantity) of the water resources under consideration to satisfy in a sustainable manner the water demand: the Haicheng River Well Fields and the Shimen Reservoir. The other 3 water supply projects focus on distribution system upgrading and rehabilitation. There is no additional production capacity, but consumption will increase due to the significant reduction of water losses to be achieved under LMC-2. In Anshan, the existing WTP will be upgraded to remove Fn and Mn; due to the high groundwater quality, there is no sludge from this plant. Anaerobic-anoxic-oxic (A20) process has been adopted in the design of the three W T P s (Panjin,Yingkou and Gaizhou) in order to remove N and P to a suitable concentrationbased on the effluent requirements.  The A2/0process (Anoxic/Anaerobic/Oxic)is similar to the NO process, however anoxic tanks are incorporatedinto the treatment scheme. The anoxic tanks are located after the anaerobic selector and prior to the oxic reactors. Nitratesare returnedto the anoxic tanks from the oxic reactors via a pumped internal recycle line. The oxic, or aerated, zone has "free oxygen" (02) available for microbiological respiration; the anoxic zone has nitrate; and the anaerobic zone has neither. C & Pe ut 21 Influent Effluent clarifier i __.. i t.._..... Internalrecirculation ...._._................. .... Excess ~ ~ ~ ii skudge 1 L___._.___.___._......._...._........._ ........ ..__..._.. ReIum sludgs ................................................. I ........._... ..-....-.-... * ~ ~ *__.__.___ I I....~ Three-stageactivatedsludge process with metal addition According to the projection of industrial-to-domestic wastewater ratios entering WWTPs as shown in Table below, the WWTPs in the three wastewater project cities (Fushun, Yingkou and Panjin)will haveto treat more industrialwastewater than domesticwastewater in the future. TABLE2: WASTEWATERFLOWS&DISTRIBUTIONENTERING WWTPs II Shortterm (2005) Mediumterm (2010) Longterm (2025) FUSHUN* DOMESTIC II II 38 1I 36 II 37 II INDUSTRIAL 62 64 63 GAIZHOU DOMESTIC 62 68 53 INDUSTRIAL 38 32 47 YlNGKOU DOMESTIC 43 46 41 INDUSTRIAL 57 54 59 PANJIN DOMESTIC 37 41 47 I I INDUSTRIAL I 63 I 59 I 53 I INTEGRATED RIVERWORKS:Fushun Eastern Hunhe Integrated River Works is also considered as a part of Fushun wastewater sub-project due to its drainage component (6.36 km of I m diameter main and connecting branch sewers). Moreover, it also includes flood control component (8.1 km dike with concrete side slope) and road component (8.4 km of 20 to 33 m width). Investment cost is estimated at million RMB 17.25 million for drainage, RMB 42.38 millionfor flood control and RMB 69.22 million for road construction. LMC-2 includes also the technical closure of two former dumping sites in Fushun and in Yingkou EDZ. The two dumping sites will be contoured to an appropriate side slope and will be capped, with collection of Leachate and transport to municipal WWTP for treatment. A monitoring programwill be implemented.  In addition, three new landfills are proposed under LMC-2 in the cities of Fushun, Panjin and Yingkou. Main characteristics of the SW sub-components are provided in the following Table. TABLE3: MAINCHARACTERISTICS OF SOLID WASTE SUB-COMPONENTS ' Item Current population serviced 570,000 (2005) 1,383,000 262,700 Future Populationserviced(2010) 11 1 (2020) 740,000 SW production per day 2005 1 1383 610 436.96 2010 ffd 1398 503.26 ~ 2020 1573 840.93 Bags' bins, compactortrucks,...) Collection system (Handcarts, No, Handcarts'bins' compactor compactor Bags,compactor trucks trucks trucks In the southeast SHuguang Landfill location I - of Wanghua area, Sangang Mountain, area in the west Northwestof LutunTown of Fushun Panjin 1I1 Landfill area ha 18 I 2 4 32.65 I Land acquisition II ha 0 I O Landfill storage capacity j 103m3 III 4650 1 3611 Life duration of landfill 17 I l2 22 (Phase II) 1 1 I ~ Distancefrom city km 20 25 11.24 20000 10,000(Phase I) m3 12000 20,000 (Phase II) II111Leachateon-sitetreatment (type) - Recirculation Recirculation Recirculation Leachatefinal disposal II - II WWTP 11 WWTP WWTP Earthworksexcavations j m3 j N/A - 111,700 I1I Earthworksfill j m3 N/A - 2,246,900 Earthworksspoils I m3 1I N/A I1Io 2,135,200 Biogas RecoverySystem Gas well Gas well Vertical gas pipe I1I Biogasdisposal Natural I Flaring dispersion Natural dispersion I Biogas production Im3/year/ N/A I 5745500 12,720 1 102.12 (Phase I) Investmentcost 141.90(Phase I & Operationcost MillionR MBly 3.71 Operation cost for collection & treatment per ton of waste RMBlTo n 16,95 17.21  TABLE4: LMC-2COSTESTIMATE Upgrading Panjin Solid Waste Treatment 241.885 118.015 17.682 93.418 163.453 9.804 4 Huludao (Xingcheng) Xingcheng Water Supply Upgrading 45.861 32.895 4.596 4.823 24.383 2.685 Project Management and Consultants 12.000 1.500 Bidingand Procurement 8.000 1.000 Asset Management 1.600 0.200 Public Utility Strengthen(GEF) 20.000 2.500 Yingkou,Fushunand Panjin SolidWaste 12.000 1.500 Study(GEF) Fushunand Huludao Wastewater 8.000 1.ooo Plan(GEF) 7 Front-end Fee  Project Works/ Equipment Other Counterpart WB Loan Project Total Cost Construction / Material cost Fund ( Million (Million (Million ( Million ( Million ( Million us RMB) RMB) RMB) RMB) RMB) Dollar) Front-end Fee 0.054 0.000 0.000 0.000 0.000 0.007 Total 2,742.551 1,543.897 524.404 449.314 1,357.496 173.132  I i t I I I I I I  Liaoning is a coastal province in the southern part of Northeast China which covers a total area of 145,900 km2and has a total population of 42 million. The province has jurisdiction over 14 cities, 17 county level towns and 17 counties. The provincial capital is Shenyang. The Liao River Basin,with a total catchment area of 220,000 km2accounts for 48% of the total land area of Liaoning Province. The rivers in the Basin drain through 11 of the most important industrial urban centres and cross large areas of agricultural land before discharging intothe Bohai Sea. The climate in the basin is characterized by distinct seasons. Spring and summer are mild and the winter period from November to March is extremely cold, with minimum temperatures in January as low as -30