China - Demonstration of Alternatives to Chlordane and Mirex in Termite Control Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC224 Date ISDS Prepared/Updated: 03/20/2006 I. BASIC INFORMATION A. Basic Project Data Country: China Project ID: P082992 Project Name: Demonstration of alternatives to Chlordane and Mirex in Termite Control Project Task Team Leader: Helen Chan GEF Focal Area: Persistent Organic Pollutants Global Supplemental ID: Estimated Appraisal Date: December 12, 2005 Estimated Board Date: June 27, 2006 Managing Unit: EASEN Lending Instrument: Specific Investment Loan Sector: Other industry (100%) Theme: Pollution management and environmental health (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 13.69 Financing Gap 14.36 28.05 B. Project Objectives [from section 2 of PCN] The objectives of this project are to (a) eliminate use of chlordane and mirex in the demonstration areas (Jiangsu Province and Hangzhou City), (b) introduce IPM practices for termite control in the demonstration areas, and (c) gain experiences that can be applied to the rest of China. Its principal outputs are (a) a technically, economically and environmentally feasible IPM strategy to replace chlordane and mirex for termite control in the demonstration areas, (b) development of policies and instruments conducive to the implementation and adoption of the IPM strategy in the demonstration province, (c) institutional strengthening and capacity building in the demonstration areas, (d) a .replication. or scale up program of the identified IPM strategy for the total elimination of chlordane and mirex production and use in the rest of China, and (e) Page 2 information exchange and awareness raising in the demonstration areas. C. Project Description [from section 3 of PCN] This proposed demonstration project is designed as the first step in meeting China.s commitment to total elimination in the production and use of chlordane and mirex for termite control in the country. This is a stand alone GEF full sized project and will follow standard Bank and GEF project processing procedures. Preliminary design of the project consists of six components. These are: a. Institutional strengthening & capacity building, b. Creation of a collaborative management framework, c. Closure of one or two chlordane and mirex producers and cleanup of the contaminated sites, d. Demonstration of IPM strategy to eliminate chlordane and mirex in the demonstration areas (Jiangsu province and Hangzhou city), including the incremental cost for the use of chemical alternatives e. Development of a monitoring and evaluation, and f. Design of a national scaling up or . replication. program of the identified IPM strategy. The GEF CEO has approved the preparation grant (PDF-B) and the entry into GEF Pipeline for this demonstration project on November 13, 2003. The PDF-B grant will support the following activities, which need to be finished within the next 6 months: a. Inception activities, including establishment of a working team in SEPA and conduction of a inception workshop (completed), b. Selection of demonstration areas (Jiangsu province and Hangzhou city were selected as the demonstration areas), c. Information collection in the demonstration areas, d. Related preliminary studies for the demonstration project, including (1) study on the institution system and legal framework, (2) study on construction codes, and (3) preliminary assessment of social, economic, and environmental impacts, e. Assess the feasibility of closing chlordane and mirex production lines and on how many tones of chlordane and mirex. This will include a cost analysis for gradual closure of production facilities, f. Development of the IPM strategy for the demonstration areas, including (1) study on the cost analysis associated with contaminated soil, water, and the structures in the immediate areas of the producers to be closed and (2) study on incremental cost associated with the use of safer, less toxic and less persistent chemical alternatives. In the case that chemicals will be part of the IPM strategy, then the selection of new chemicals should be acceptable to the Bank guidelines on pesticide use (Reference to the WHO recommended classification of pesticides by hazard ), and g. Preparation of the financing plan and the operation mechanism. The output of the PDF-B will be the project brief with a number of supporting documents, which will be used to prepare the PAD and for the appraisal and negotiations of the Page 3 project, specifically: a. Report on selection of demonstration areas, b. Report on the production, sales, distribution and use of chlordane and mirex in demonstration areas, c. Assessment report on institutional/policy capacity building in demonstration areas, d. Assessment report on social, economic and environmental impacts, e. IPM strategy for the demonstration areas f. Financing plan for the proposed project, g. Action plan of the project implementation, and h. A draft operations manual including a monitoring and evaluation plan. D. Project location (if known) Basic criteria in the selection of demonstration areas are (1) comparatively longer history in the use of chlordane and mirex, (2) a better termite control system at different levels of government -- province, county, and district, (3) typical soil and climate conditions, (4) the main species of termites causing serious structural damage (Coptotermes formosanus, Odontotermes formosanus, and Reticulitermes speratus) are present, (5) one or more production enterprise(s) of alternatives to chlordane and mirex, and (6) strong local government support. An inception workshop for the project was held in January 2004. At that workshop, Jiangsu province was selected as the demonstration province. In addition, Hangzhou city and Wuxi city were selected for termite case study funded by the Canadian Trust Fund. E. Borrower