China - Huai River Water Pollution Control Project : environmental assessment (Vol. 2 of 3) : Shandong component

E-380 VOL.2 Consolidated Environment Assessment for the Huai River Water Pollution Control Project Shandong Component (Final) August 2000 Shandong Provincial Scientific Research and Design Institute of Environmental Protection with assistance from Mott MacDonald/ERM A A U, 24 4I IRE E . E XoDu   Huai River Water Pollution Control Project Environmental Assessment Shandong Province Table of Contents Executive Summary I Introduction 1-1 1.1 Huai River Water Pollution Control Project (HRWPCP) Background 1-1 1.2 Description of the Study Area 1-7 1.3 Policy, Legal and Administrative Framework 1-16 1.4 Scope and Standards of Environmental Assessment 1-18 1.5 The Need for the Project 1-21 1.6 Assessment Objectives, Criteria, Parameters 1-21 1.7 World Bank EA Preparation Requirements 1-22 1.8 EA Participants 1-23 1.9 EA Organisation 1-23 2 Description of the Proposed Project 2-1 2.1 Overview of Huai River Basin 2-1 -2.2 HRWPCP Project Components 2-1 2.3 Project Formulation and Development 2-3 2-.4. Details of Shandong HRWPCP Component Projects 2-5 2.5 Cost Estimates for Proposed Projects 2-9 2.6 Implementation Schedule 2-13 3 Description of the Environment (Provincial Overview) 3-1 3.1 Physical Environment 3-1 3.2 Biological Environment 3-10 3.3 Socio-cultural Environment 3-11 3.4 Areas of Special Designation 3-12 4 Environmental Management and Problems 4-1 4.1 Water and Environmental Institutional Arrangements 4-1 4.2 Attainment of Goals, Standards, Regulations 4-5 4.3 River Systems and Ocean 4-17 5 Determination of the Potential Impacts of the Proposed Project 5-1 5.1 Typical Impacts of Water Pollution Control Projects 5-1 5.2 Positive Impacts of the Specific HRWPCP Components 5-4 5.3 Potential Short Term Construction Impacts 5-8 5.4 Potential Operational Phase Impacts 5-14 5.5 Potential Project Risks 5-26 5.6 Cumulative HRWPCP Impacts 5-29 6 Analysis of Alternatives to the Proposed Project 6-1 6.1 Introduction 6-1 6.2 Alternatives Reviewed in Project Development 6-1 6.3 No Project Alternatives 6-12 7 Mitigation and Monitoring Management Plans 7-1 7.1 Mitigation and Monitoring of the Implementation of Mitigation 7-1 7.2 Institutional Responsibilities 7-9 7.3 Equipment and Training Requirements 7-11I 'August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province 7.4 Impacts and Costs of Plan 7-11 7.5 Long-term Monitoring of the Performance of HRWPCP 7-12 7.6 Effectiveness ofthe Works 7-13 8 Public Process and EA Public Participation 8-1 8.1 Meetings with Public Officials in Developing Project and EA 8-1 8.2 Survey of Public Officials and Citizens in Project Area 8-2 8.3 EA Disclosure 8-3 8.4 Summary of Public Input 8-4 9 Summary and Conclusions 9-1 9.1 General Conclusions 9-1 9.2 Existing Environmental Conditions, Huai River Basin - Shandong 9-1 9.3 Positive Impacts 9-3 9.4 Potential Negative Impacts and Mitigations 9-5 9.5 Total Water Pollutants Removed 9-10 9.6 Environmental Management and Monitoring Plan 9-13 9.7 SIEP Suggestions 9-13 9.8 Conclusions and Recommendations 9-14 List of Tables Table 1.1: Polluted Water Type Categorization in Huai Basin 1-3 Table 1.2: Pollution Trend in Huai River Basin 1-3 Table 1.3: Changes in Pollution Loads in Henan and Anhui 1-4 Table 1.4: Environmental Background Problems, China (1994) 1-6 Table 1.5: Shandong Project Cities, Receiving Waters of Wastewater Effluent 1-11 Table 1.6: Discharge Direction of Each Subproject and Monitoring Situation of Corresponding Section 1-12 Table 1.7: Number of Current Septic Tanks in Shandong Province HRWPCP Cities 1-14 Table 1.8: Population and Wastewater Projections 1-16 Table 1.9: Summary of the STEP EA Classification 1-19 Table 1.10: EA Scope 1-20 Table 1.11: EA Standards Summary 1-21 Table 1.12: EA Staff of Shandong Scientific Research and Design Institute of Environmental Protection 1-23 Table 2.1: Proposed Sewerage in Shandong Province 2-2 Table 2.2: Summary Details of WwTWs 2-2 Table 2.5: Comparison of Cost Estimates for Shandong Province - by Expenditure Category 2-11 Table 2.8: HRWPCP Implementation Programme 2-13 Table 3. 1: Geographical Location of Sub-Project Located Area 3-1 Table 3.2: Meteorological Summary, WPCP Project Cities 3-4 Table 3.3: Hydrologic Parameters of HRWPCP Project Area 3-6 Table 4.1: National Water and Environmental Laws Important to HRWPCP 4-1 Table 4.2: Environmental Quality Standard for Surface Water GHZB-1 1999, issued 20 July 1999, effective 01 Jan 2000 4-3 Table 4.3: Standards of Specific Indices in Lakes and Reservoirs 4-4 ii August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Table 4.4: Standards of Specific Indices in Class I, II, III Surface Waters 4-4 Table 4.5: Groundwater Monitoring Sites 4-7 Table 4.6: Groundwater Monitoring Parameters 4-7 Table 4.7: Groundwater Monitoring Results 4-7 Table 4.8: Groundwater Actuality Assessment Standard 4-8 Table 4.9: Quality Analysis of Water in and Out of WwTWs 4-11 Table 4.10: Industry Categories and Pollution Loads in Huai River Basin 4-12 Table 4.11: Industries in Each Administrative District in Huai River Basin 4-13 Table 4.12: Paper Industry and Pollution Loads in Huai River Basin 4-13 Table 4.13: Major Brewing and Food Industries in Huai River Basin 4-14 Table 4.14: Drainage Wastewater Quantity and Water Quality of Main Industrial Enterprises 4-15 Table 4.15: Water Quality Standard of Sewers in City of Wastewater Discharge 4-16 Table 4.16: Situation of Water Source Location in Each Sub-Project City 4-17 Table 4.17: Conditions of Monitoring Section of Surface Water 4-18 Table 4.18: Monitoring Items, Time and Frequency of Current Situation of Surface Water 4-19 Table 4.19: Monitoring result of current situation of surface water 4-19 Table 4.20: Discharge Direction of Each Subproject and Monitoring Situation of Corresponding Section - -= 4-20 Table 4.21: Monitoring Result of Routine Monitoring Section Concerning Projects - 4-21 -Table 4.22: Conditions of Control Sections Related to Projects 4-22 Table 4.23: Hydrology Parameter of WwTW Rivers 4-23 Table 4.24: COD forecast results of Zhushui, Kangwang, Dongyu River 4-23 Table 4.25: Water Quality Situation of Zhushui, Kangwang, Dongyu Rivers after Finishing the HRWPCP Projects 4-24 Table 4.26: Forecast Result of Water Quality Improvement to the Control Section of Related River4-24 Table 4.27: Environmental Function Area Division of Rizhao Coastal Area 4-25 Table 5.1: Improved Water Resources by Component City 5-5 Table 5.2: Increased Tourism by Component 5-6 Table 5.3: Situation of Provincial Total Volume Control Section In Related River (nearest section to sewage outlet) 5-7 Table 5.4: Permitted COD Volume Entering To Related River In 2000 5-7 Table 5.5: Total Discharged Volume of CODcr in HRWPCP 5-7 Table 5.6: Summary of Project Affected Land Statistics 5-9 Table 5.7: Estimated Spoils Generation and Management Measures 5-]1 Table 5.8: HRWPCP WwTW Scheduling 5-14 Table 5.9: Environmental Noise Monitoring Sites 5-16 Table. 5.10: The Measured Results of The Noise In Sewage Factories 5-17 Table 5.1 1: The Results of the Noise Forecast at WwTWs 5-18 Table 5.12: The Calculating Result of Hygiene Defending Distance 5-19 Table 5.13: The Fertilizer Efficiency of Active Sludge from WwTW 5-22 Table 5.14: The Heavy Metal Content and Component in Sludge in Wastewater Plants 5-23 Table 5.15: The Health Standard of Sludge 5-23 Table 6.1: Technique and Economy Comparison of Boiling Waste Water Liquid Treatment Method 6-10 Table 6.2: Technical and Economical Comparison of Sewage Biochemical Treatment Method 6-11 Table 7.1: Wastewater Sewerage and Pumping 7-2 iii August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Table 7.2: Wastewater Treatment Works (WwTW) 7-2 Table 7.3: Sludge Management System 7-3 Table 7.4: Construction Debris Disposal 7-3 Table 7.5: Industrial Wastewater Treatment 7-3 Table 7.6: Ocean Outfall, Effluent Re-Use Pipelines 7-4 Table 7.7: Solid Waste, Septage, and Direct Discharge Sources 7-4 Table 7.8: Raw Sewage, Domestic and Industrial Sources to Sewer Systems 7-5 Table 7.9: Raw Sewage Overflows, Various Locations 7-5 Table 7.10: Wastewater Sewerage and Pumping 7-6 Table 7.1 1: Wastewater Treatment Works (WwTW) 7-6 Table 7.13: Receiving Water Issues, Including Ocean 7-7 Table 7.14: Wastewater Reuse and Downstream Users 7-8 Table 7.15: Industrial Wastewater Treatment 7-8 Table 7.16: SPMO Environmental Monitoring Costs 7-12 Table 8.1: Survey Population 8-2 Table 8.2: Investigation Results 8-3 Table 8.3: Shandong EA - Introduction of Public Participation Survey 8-5 Table 8.4: Shandong EA - Summary Information Disclosure - 8-7 Table 9.1: Total Discharged Volume of CODcr in HRWPCP - 9-4 -Table 9.2: COD forecast results of Zhushui, Kangwang, Dongyu River - 9-1 1 Table 9.3: Water Quality Situation of Zhushui, Kangwang ,Dongyu River after finishing the HRWPCP Proj ects 9-11 Table 9.4: Forecast Result of Water Quality Improvement to the Control Section of Related River 9-12 Figures Figure 1. I Location Plan Showing Project Provinces Figure 1.2 Location of Project Sub-components Figure 1.3 Project Sub-components in Shandong Figure 1.4 Plan of Rizhao Municipal Figure 2.1 Plane Drawing of Wastewater Drainage Pipe Layout in Feicheng Figure 2.2 Feicheng Wastewater Project - Schematic Figure 2.3 Heze Sewerage System Figure 2.4 Heze Wastewater Project - Schematic Figure 2.5 Plan for Rizhao Wastewater Engineering - Wastewater Main Sewers (Phase I) Figure 2.6 Rizhao City Wastewater Project - Schematic Figure 2.7 Ju County Wastewater Treatment Works - General Layout of Sewers Figure 2.8 Rizhao - Ju County Wastewater Project - Schematic Figure 2.9 Location of Chengwu Paper Mill iv August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Figure 2.1 0 Chengwu Paper Mill - Proposed Pollution Control Process Figure 2.11 Simplified Process Schematic of WwTW Proposed for Chengwu Paper Mill Figure 4.1 Huai River Basin - Environmental Protection Organisations Figure 4.2 Monitor Locations of Surface Water Conditions in Ju County Figure 4.3 Plane Drawing of Monitoring Locations of Environmental Condition in Heze Figure 4.4 Monitoring Locations of Feicheng Groundwater and Surface Water Figure 4.5 Monitoring Locations of Ambient Air, Surface Water and Groundwater in Chengwu Plates Plate 1: Heze wastewater treatment plant site Plate 2: Typical sewer location in Heze urban area Plate 3: Typical urban water course in Heze affected by pollution Plate 4: Proposed location of Heze Nr. 3 pumping station and sewer route Plate 5: Site of Feicheng WwTW showing current agricultural use Plate 6: Location of interceptors in pavement (Feicheng sub-project) Plate 7: Location of interceptor along river bank (Feicheng sub-project) Plate 8: Location of interceptor along natural river bank (Feicheng sub-project) Plate 9: Site of the Rizhao WwTW. Agricultural land and agricultural sheds will be affected Plate 10: Rizhao sub-project typical location of pumping station and interceptors - affecting agricultural Plate 1 1: Rizhao sub-project site of Pumping Station Nr. 3 - Park land Plate 12: Rizhao sub-project location of interceptors along river bank Plate 13: Ju County sub-project, typical road verge used for the installation of the sewer network Plate 14: Ju County sub-project, sewer traverses through field Plate 15: Chengwu Paper Mill - tank of old existing WwTW with straw stoccks in background Appendix Appendix I SIEP Inland Surface Water Quality Assessment (SIEP Chapters 5.1, 6.1) Appendix 2 SIEP Ocean Water Quality Assessment (SIEP Chapters 5.2, 6.2) v August 2000  Huai River Water Pol]ution Control Project Environmental Assessment Shandong Province 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 PAD Project Appraisal Document (WB) AIC Average Incremental Cost PAP Project Affected Person AP Action Plan for IDP PIP Project Implementation Plan ATP Ability to Pay PIU Project lmplementation Unit (Municipal) BOD Biochemical Oxygen Demand PMO Project Management Office (Provincial) COD Chemical Oxygen Demand PPP Project Procurement Plan CRAES China Research Academy for Environmental PRC People' s Republic of China Sciences PS Pumping Station DHV Consult. BV/D&J Eng Consult. Co PV Present Value DO Dissolved Oxygen DO Dissolved Oxygen RAP Resettlement Action Plan DWF Dry Weather Flow (sewage) RMC Resident Mission in China EA Environmental Assessment SDPC State Development and Planning Commission EIRR Economic Intemal Rate of Return SEPA State Environmental Planning Agency EMP Environmental Management Plan SPG Shandong Provincial Government EPB Environmental Protection Bureau SS Suspended Solids ERM Environmental Resource Management ToR Terms of Reference FIRR Financial Internal Rate of Return TVE Town and Village Enterprises FSR Feasibility Study Report WB World Bank (International Bank for HRBC Huai River Basin Commission Reconstruction and Development) HRWPCP Huai River Water Pollution Control Project WPCP Water Pollution Control Plan for Huai Rivef Basin IDP Institutional Development Plan WRB Water Resources Bureau IST Institutional Strengthening and Training WSC Water Supply Company IWHR China Institute of Water Resources and Hydropower WTP Willingness to Pay Research LG Leading Group WTW Water Treatment Works l/c/d Litres per capita per day WWE Water and Wastewater Enterprise LIBOR Lonidon Inter-bank Borrowing Rate WwTE Wastewater Treatment Enterprise ML. Municipal Local Government WwTW Wastewater Treatment Works MLCG Municipal Local Government MoF State Ministry of Finance 3H Study Hai, Huai and Huang River Action Program Study for Water Resources, Water Pollution Control, MWR/Wi NCMEDI North China Mun Eng Design Institute 1999 OD Oxygen Demand NB: Si units of measurement have been used throughout this report vi August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province EXECUTIVE SUMMARY Environmental Assessment of the Huai River Water Pollution Control Project (HRWPCP), Shandong Province This report provides a summary of the Environmental Assessment Report - Main Report and Appendices, for the Shandong Province portion of the Huai River Water Pollution Control Project (HRWPCP). A separate Environmental Assessment Report covers the Anhui Province portion of the HRWPCP. The full reports cover the assessment of the environment impacts of the project components to be developed under the HRWPCP, Shandong Province. 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, with the assistance of the AC (Mott MacDonald and ERM International). Huai River Basin 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. The Basin is divided into two major. systems: The Huai River System (190,000 kM2) originating in the west and about 1,000 km long with 120 tributaries 'lows east-south through Hongze Lake and discharges into the Yangtze River. The Yi-Shu-Si River System (80,000 kmi2) originates in the north, flows southwest and discharges into the Yellow Sea. The Grand Canal in the east connects the Huai and Yi-Shu-Si systems as well as the Yangtze and Yellow rivers. Shandong Province surface reaches are hyrologically connected to the Huai River basin through the Grand Canal, but they do not flow directly to the Huai River mainstream. 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 cause of the 1994 Huai River Pollution Incident was discharge of significant polluted wastewater from many straw pulp factories, paper mills, and tanneries in Henan Province and Anhui Province located the upstream portion of the Ying He River. These industries discharged a great quantity of polluted wastewater during the dry season when the River course operates with closed gates. (Since 60-70 % of the annual river flow occurs during May-August time period, the gates maintain surface water levels but also store the incoming pollution.) This stored polluted wastewater discharged during the flood season when the gates opened, resulting in significant downstream pollution. The pollution caused the power station to malfunction causing major impacts to the Hua Dong power network. Fishery resources were destroyed and agricultural and industrial damages were widespread. Water supplies were all affected resulting in significant impacts to the people of the downstream cities. Direct economic damages were estimated at over one billion yuan. Consequently the State Council has 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 for the Huai River Basin defined the targets for the Basin as follows: * By 1997, all the wastewater discharges from industrial pollution sources should meet standards for effluent and the total COD should be reduced from 1.5 million tons in 1993 to 0.89 million tons (0.2638 million tons from Shandong Province.); ES-] August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province * By 2000, the total COD should be reduced to 0.368 million tons (0.0647 million 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 III of the National Surface Water Standard. As part of these efforts of the State Council and the four Huai basin provinces (i.e. Henan, Anhui, Jiangsu and Shandong Provinces) 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 PRC, the World Bank has listed the proposed project in the lending programme for WB fiscal year 2000/2001. Water pollution control in Henan and Jiangsu is being dealt with under a separate programme. Shandong Province Shandong Province covers most area of Yi-Shu-Si System of Huai River Basin. The mainstream of the Huai River does not flow through the Province, but many other basin tributary reaches flow through the Province. Many are hydrologically connected to the Huai River but actually flow directly to-the Yellow Sea. Pollution is mainly organic, with sections in urban reaches being more polluted than rural reaches. By December 1996 to control pollution in the Basin and in accordance with stipulation of "Ninth Five- Year Plan," the province had closed approximately 460 small enterprises causing serious pollution. Other small and medium polluting enterprises have continued to be closed in the basin, and other polluting enterprises have their production curtailed in the dry season to reduce wastewater discharges. Within the overall HRWPCP project area, Shandong Province is approximately 156,700 kM2, of which 47,100 km2 is located within the Huai River Basin. The 1998 population of the Shandong Province was 86.10 million, with 23 million in urban areas. The portion of Shandong Province within the Huai River Basin was about 30 million total, and 1.2 million in urban areas. HRWPCP Project Goals and Objectives In order to fully solve the pollution problems in Shandong province major works will need to be developed for most of the cities in the province. It is not possible to finance all necessary works in one step. It is therefore foreseen that further phases of the HIRWPCP will continue over many years. In accordance with the national World Bank (WB) policies and priorities, the Shandong Provincial Government (SPG) has requested WB and bi-lateral donor support for the Huai River Water Pollution Control Project. The HRWPCP is also a key element of China's Agenda 21 programme. The sector- related goal for the project is: Improve quality of water for the entire basin by providing environnenital infrastructure operated in a sustainable manner The HRWPCP objectives are to: I. Upgrade water quality in the Huai River (Class III target) and its tributaries (Class IV target) within the two provinces. ES-2 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province 2. Establish performing and efficient wastewater agencies. 3. Consolidate water quality monitoring system and procedures. To accomplish this goal and objectives, the outputs for each project component are: 1. Increase in municipal wastewater collection. 2. Increase in quantity of wastewater treatment. 3. Implementation of cost-recovery for wastewater operations. Regional Water Resources The Huai River mainstream originates from Mt.Tongbo in Tongbo County, Henan Province. It flows through Henan, Anhui and Jiangsu from west to east and the mainstream covers 1000 km. The elevation difference is 13m with a ratio of 0.03%. Shandong Province is located in the middle and downstream of Huai River. Within the boundary, the basin area is 47,100 km2, or 30.06 % of the total area. Shandong Huai River Basin covers the cities of Zaozhuang, Jining, Linyi, Taian, and Zibo and the prefecture of Heze. The surface water is mainly polluted by COD, BOD, organisms and unionised ammonia. After the implementation of the 1996 WPCP, the water quality is improving. However, the planned water ,uality objective of "Huai River Basin Water Pollution Protection and Control Plan" and "Ninth-five years' Plan (1996-2000) has not been attained. No rivers in Shandong Province are tributaries of the Huai River mainstream directly. The Huai River mainstream and the Yi-Shu-Si catchments are hydrologically linked by the Grand Canal, but most of the surface flow from Shandong Province waterways flows directly to the ocean rather than to the Huai River and Yangtze River. Figure 1.3 gives the project areas and major rivers in the Shandong section of the Huai River Basin. Water Resources of Project Cities Feicheng There are seven large rivers crossing the city: Wenhe, Kangwang, Caohe, Zhouhe, Huihe, Xiaohuihe, and Jinxianghe Rivers. The total length is 196.3 km. Heze There are three rivers passing Heze city; Zhaowang, Wangfu, and Zhushui. Wastewater discharges have caused serious pollution to the water bodies, and all lakes and rivers in the city are worse than Class V surface water quality standards at present. The pollutants are discharged into Dongzhaowang and Zhushui Rivers that lead to Nan Si hu Lake before they reach the Huai river catchment. Rizhao/Ju County Rizhao City is located in the east of Shandong Province besides the Yellow Sea. The municipality lies within the Huai River Basin administrative and planning boundary. A large proportion of the municipality, comprising Ju County, drains to the Shu River, a tributary of the Huai River. However, the area around Rizhao drains to a smaller system of rivers that discharge locally to the Yellow Sea. Cheng Wu Paper Mill The paper mill discharges to the Dongyu River, a tributary of Nansi Lake via Dushan Lake. ES-3 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Current WPCP Compliance Status In 1999, the Chinese Research Academy of Environmental Sciences (CRAES) selected 45 major stations to investigate the current water quality of the Huai River Basin. Data from national environmental water quality reports between 1986 to 1993, 1994 for the Huai mainstream, 1995 to 1996 for trans-boundary assessments and some incomplete data from 1997 and 1998 were used by CRAES to determine the existing water quality of the river basin. CRAES (1999) reported that of the 45 sections, only 4 reached their designated beneficial use classification. It is undoubtedly true that the total COD loading in 1997 in Shandong Province also exceeds the WPCP goals, but data is not readily available. Although the municipal and industrial loading was under the plan goal for 1997, the WPCP did not account for the "other" sources of COD in the basin. In addition, the municipal and industrial progress since 1997 lagged behind plan goals so that the year 2000 goals of 64,700 tons for Shandong province have not been met. SIEP estimates that the current year 2000 COD loading in Shandong Province is approximately 213,000 t/year, including TVEs and nonpoint source pollution. The HRWPCP projects will remove approximately 37,145 t/year of COD, leaving the overall Shandong loading well in excess of the target of 67,400 t/year. Need for the Project According to the draft "3H Basins Action Program Study for Water Resources, Water Pollution Control" prepared in November 1999 for the Ministry of Water Resources and the World Bank (known as the '3H Study since it covers the Hai, Huai, and Huang rivers), the Plan goals have not been met in the Huai River basin. This report indicates that significant additional resources are required to meet the Class IIIIV standards of the Basin Plan, and that rural sources such as uncontrolled township and village enterprises (TVEs) and non-point source pollution (mainly polluted agricultural and urban runoff) will remain a problem even after implementation of industrial controls and domestic wastewater treatment. Implementation of industrial and domestic wastewater treatment lags behind the proposed implementation schedule due to funding problems. The main pollutants are unionised ammonia, BOD, COD and bacteria levels, and the problems are especially acute in the dry seasons when background flows are reduced to at or near zero levels. As such, the water quality problems in the Huai River Basin remain severe, the implementation of municipal WwTW has been slow, and the HRWPCP is targeted to support a major need. It is the national goal to have wastewater collectiDn and secondary treatment facilities constructed in all cities within the Huai River Basin. Many of the cities in the basin have already been building wastewater collection and treatment facilities with international and bilateral assistance. The HRWPCP is designed to complement the overall basin objectives by supplementing these ongoing efforts in the major cities of the Shandong Province that have not been addressed by other projects. EA Preparation Requirements The Environmental Assessment (EA) for this project was based on the following directives and guidance documents: * World Bank Operational Directives: ES-4 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Natural habitats (OP 4.04, BP 4.04, GP 4.04) - n/a Forestry (OP 4.36, GP 4.36) - n/a Pest Management (OP 4.09) - n/a Cultural Property (OPN 11.03) Indigenous Peoples (OD 4.20) - none present in the project areas Involuntary Resettlement (OD 4.30) Safety of Dams (OP 4.37, BP 4.37) - n/a Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) - n/a Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)- n/a World Bank Environmental Assessment Sourcebooks, Volumes 1-3, Technical Papers 139, 140, and 154. World Bank Environmental Assessment Updates 1-21, to December 1997. * World Bank HRWPCP Project Aide Memoirs (dated 23 Nov 98, 06-14 May 99, 26 June 99, 17 Nov 99, 9 May 00 and 8 July 2000) * SEPA Standard HJ/T 2.1-2.3, 1993, Technical Guidelines for Environmental Impact A-' Assessment, 1993-09-18 published, 1994-04-01 in effect. * Class B project determination by World Bank The Prioritisation of Schemes Provision of wastewater collection and treatment facilities in the cities of the Huai river basin is a priority action item in the WPCP, and a critical component shown in the 3H Rivers Action Plan ('3H' is 3 basins - Hai, Huai and Huang). The Ninth Five-Year Plan (1996-2000) of Water Pollution Control in the Huai River Basin anticipated that much of the construction of wastewater collection and WwTWs would be completed by the year 2000, but the programme is running well behind schedule. The HRWPCP has been designed to complement the activities already underway to move quickly toward the national Basin goal. As outlined in the 3H Rivers Action Plan, comprehensive municipal and industrial wastewater treatment as well as agricultural and urban non-point source controls are necessary to allow the Basin to meet these goals, and the HRWPCP fosters these efforts. Overview of HRWPCP Phase I Project Components Shandong Province is currently proposing four municipal wastewater schemes and one industrial pollution control sub-component for inclusion in the HRWPCP. All the municipal wastewater schemes involve improvement and extension of existing sewerage networks and three include new WwTWs. Most of the sub-components also include operation and maintenance equipment including laboratory equipment and vehicles. The Rizhao City component also includes construction of sea outfalls. One of the cities, Ju County, has a WwTW under construction using only local funding. Hence, this WwTW is outside of this project. ES-S August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province All the sewerage schemes will involve both the interception of existing combined sewage or industrial wastewater outfalls and provision of first wastewater collection in more recently developed areas of the cities. Wastewater will be conveyed to WwTWs and will make a major contribution to control of water pollution in the Huai River Basin, and in the case of Rizhao, control pollution in off-shore waters and on bathing beaches. Table ES-1 and ES-2 shows the project details that are proposed for the HRWPCP in Shandong Province: Table ES-1: Proposed Sewerage in Shandong Province Length of Sewer Pipelines to be Constructed by Size and Length by Pipe Pumping Function (km) Material (km) Stations City Pumping Secondary DN300- >DN800 Total PVC Concrete Mains < DN300 DN800 other Feicheng 12.8 6.7 19.5 19.5 Heze 28.4 18.3 7.9 54.6 52.7 1.9 4 Rizhao 8.5 4.1 27.0 39.6 39.6 3 Ju County 8.7 6.3 15.0 15.0 .Chengwu Paper Mill Total 8.5 28.4 43.9 47.9 128.7 52.7 76 7 Notes: Feicheng also includes 7 km of DN3 15 PVC recycled effluent pressure main. Rizhao also includes 2.8km DN 1600 pressure pipe to header chamber, 2.5km twin DN1200 outfall and 0.5km DN1200 emergency outfall. Table ES-2: Summary Details of WwTWs Chengwu Details/Process Feicheng Heze Rizhao Paper Mill Capacity m3!d 40,000 Average 80,000 Average 100,000 Average 20,000 Average DWF DWF DWF DWF Raw Pumps, duty 3 x 760 m3/h 3 x 1444 m3/h 2 x 3600 m3/h 4 x 200 m3/h Preliminary Coarse screens, grit Coarse screens, grit Coarse screens, grit Fine screens and Treatment removal and fine removal and fine removal and fine Fme removal Treatment sressrescensfibre removal screens screens screens Yes Yes Primary Settlement No No 2 x 42 m dia 2 x 22 m dia Aeration Type Oxidation Ditch Oxidation. Ditch Primary Treatment wcith nutrient Tank Retention 16 hours 17 hours only addition Final Sedimentation. 2 x 40 m dia. 4 x 40m dia. N/a 2 x 36 m dia. Tanks Gravity Thickeners 2 x 12 m dia. 2 x 14m dia. 2 x 14 m dia. 2 x 16 m dia. Dewatering: Belt Presses 2 x 1.5 m 2 x 3 m 2 x 2 Centrifuges -- -- -- Landfill and Lime dosing then Sludge Disposal Niushan Forest Landfill use as fertiliser on Landfill Farm forest farm ES-6 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Technical Assistance The WB considers it critical that institutions responsible for implementing and managing HRWPCP sub-projects are equipped with the management and technical knowledge, skills and equipment necessary to carry out their mandates. A technical assistance (TA) needs assessment is scheduled and this will form the basis for an institutional programme which will provide training and equipment to the provincial and city PIUs, Provincial and City EPBs, and the wastewater operating companies or departments. Of particular relevance to the EA, the project includes an overall environmental strengthening component in the area of environmental monitoring. This strengthening is aimed at improving the city and provincial ability to monitor and report on environmental conditions under stress, as well as providing the means to better assess the environmental performance of the project investment package. Water and Environmental Objectives The Constitution of the People's Republic of China (1982) provides the framework for environmental protection law in China. Article 26 of the Constitution stipulates that the "the-State protects and improves the living environment and the ecological environment, prevents and remedies pollution and ,other public hazards." National legislation is comprehensive and appears to cover most areas of environmental concern. However, the level of enforcement in Shandong (as in the rest of China) is clearly often less than satisfactory. The Chinese economy continues to grow rapidly and there is often a trade-off between the strict enforcement of environmental legislation and promoting economic growth and employment. All surface waters in China have been classified according to these ambient stream standards. The following is a general translation of the surface water classes: Class Description I used for water sources and state nature reserves II used for class I protection areas for drinking water sources, protection zones for valuable fish, spawning grounds of fish and shrimps III used for class II protection areas for drinking water sources, general protection zones for fish and bathing areas IV used for general industrial water areas and water recreation areas where no direct contact with humans occurs V used for agricultural water areas and scenic water areas. Project Benefits Public health projects like the HRWPCP carry many general benefits to the citizens of the project cities. The project reports outline specific and quantified benefits in the areas of: * Raising the Output of Agricultural, Fish and Livestock Production * increased Domestic Output Due to Improved Water Resources * Public Health Improvements ES-7 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Increased Revenue from Tourism * Increased Real Estate Values * Improved Surface Water Quality Other additional potential benefits might include: Reduced risk of groundwater contamination in the service areas. The impact of making realistic charges for wastewater services, should help to encourage waste minimisation at source, and internalise the costs of pollution control. * Amenity benefits to the population of project cities are likely to accrue as the quality of the adjacent rivers improve. This could include use of the river for recreational purposes and the development of riverside walks and parks for public use. Social Impacts Resettlement and compensation plans have been prepared and are covered in a separate "Resettlement Action Plan" (RAP). The final RAP has been prepared for the World Bank at the same time as this EA and the summary is shown in Table ES-3. Table ES-3: Project Affected Land Statistics Permanent Land Acquisition (Mu) Temporar Land (Mu) Tilled Veget Wood[ Others Sub- State- Affected Tilled Veget Others Sub- State- Affected and total owned people . total owned peopie _ Land | lland Land Iland Rizhao 107.3 54.9 52.4 214.6 214.6 435 68.1 6 125.5 199.6 199.6 255 Ju County - - - - - - 21 5 - 26 26 78 Feicheng 70.95 0.75 1.80 73.5 - 94 19.2 - 1.5 20.7 1.5 52 Heze 91.75 - 28.22 119.97 9.62 129 4.95 0.72 230.44 236.11 227.74 12 Total 270.00 54.90 0.75 82.42 408.07 224.22 658 113.25 11.72 3S7.44 482.41 454.84 397 Environmental Impacts Potential construction phase impacts are relatively minor and easily mitigated. These construction impacts have been sorted according to their geographic location within the overall project scheme. Details of mitigation measures, the monitoring required to ensure that mitigation measures are effectively implemented, and responsibilities are provided in detailed charts. HRWPCP PMOs will have an ongoing responsibility to track and report the monitoring work of all the identified agencies, in addition to their own direct monitoring activities. The potential operational phase impacts are relatively minor and easily mitigated. Many of the concerns have been addressed in the course of the design of the wastewater collection and wastewater treatment facilities. Details of mitigation measures, a programme for monitoring mitigation measures and responsibilities are provided in detailed charts. The economic analysis for HRWPCP component projects indicates that they are needed and affordable for the population of the cities. This project is meeting a "backlog" need for environmental infrastructure and should not induce adverse extensive growth or secondary impacts. The present environmental problems arc serious and the provision of this environmental infrastructure is necessary ES-S August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province for current needs and to mitigate current problems. Future problems without the project would become even more critical. Mitigation and Monitoring Budget The capital budgets prepared for all HRWPCP component projects include allowances for necessary laboratory construction and equipment. Using this equipment to perform the necessary and required testing by the utility is also included in the operations budget for the project. Environmental strengthening is considered a critical component of the HRWPCP project and a detailed Technical Assistance (TA) programme is being developed to address the needs. This includes training in management and operations for the PMOs and the utility companies, in a wide variety of disciplines. There is a component for an Environmental Monitoring Centre in the project to provide both equipment and training for city EPBs and the provincial EPBs. These facilities and the training planned will greatly facilitate the monitoring of the environmental impact mitigation measures proposed. Furthermore, accomplishing the specified monitoring and reporting outlined in this mitigation plan will be greatly enhanced by the TA program. This TA program will also allow for improved overall performance assessment of the HRWPCP programme 4elative to meeting the project objectives. Future Phases of the HRWPCP will benefit from such assessments. Despite the above facilities and training the conduct of the mitigation monitoring programme will require additional funding. Cost estimates to cover long-term environmental monitoring have been estimated. "Long-term" is defined as annual monitoring required to verify the environmental performance and other operational mitigation measures previously outlined. These mitigation monitoring costs are being added into the utility operational cost estimates. Costs for mitigation measures that relate to the management of construction will be included in the tender documents and responsibility passed on to the construction contractors. Table ES-4 summarises the monitoring cost estimates. Table ES-4: SPMO Environmental Monitoring Costs Investment for Monitoring No. Sub-project environmental Concrete content management fee No. Sub-project ~~~~~protection per year (1OOOOyuan) (1OOOOyuan) Environmental monitoring 1 Rizhao wastewater treatment plant pip instrument, virescence, vehicle for 30 Rizh and pwpe network e ncarrying mud, decreasing the pump _ station's noise, etc. 2 Ju County wastewater pipe network 99 Environmental monitoring (includc wastewater plant) instrument, virescence, etc. t0 Environmental monitoring 3 Heze wastewater treatment plant 176 instrument, virescence, vehicle for 15 and pipe network carrying mud, decreasing the pump station's noise, etc. Environmental monitoring 4 Chengwu paper mill 352 instrument, virescence, noise 20 treatment, landfill construction, vehicle for carrying mud, etc. 5 Feicheng wastewater treatment plant 77 Environmental monitoring 12 and pipe network instrument, virescence, etc. 6 Total investment for environmental 891 87 protection I Note: The investment of landfill for filling white mud, sludge in Chengwu sub-project is greater, approximate 2,000,000yuan. This investment will invest by stages and in groups in 20 years. ES-9 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Options Reviewed in Project Development The evaluation of options for individual project components covered issues such as: * Sewerage System Interception Ratio Pipe Materials Pipeline Construction * Number of Pump Stations and Force Mains Number of WwTWs WwTW Site Selection * Wastewater Flows and Capacity of the WwTWs * The Quality of Wastewater to be Treated The Use of Septic Tanks Treated Effluent Standards The Degree of Treatment * Wastewater Treatment Options * Variants of the Oxidation Ditch * Sludge Disposal *- . Chengwu Paper Mill Treatment * "Without Project" Alternatives In addition, detailed technical evaluations were conducted on the Chengwu Paper Mill relative to technical suitability and cost effectiveness of proposed industrial wastewater controls. Public Participation in the EA During the 12-month project development time leading up to pre-appraisal and this EA, there have been many meetings with the city PMOs, utility companies, city EPBs and other affected city organisations to discuss the proposed projects and environmental assessments. These meetings have occurred monthly at a minimum and have resulted in full collaboration with local officials and full support of the project and the EA process. It is estimated that in total 30-40 meetings have been held with the public and over 50 meetings have been held with local government officials during the development of the projects. SIEP public participation activity developed by the assessment unit and construction unit adopted random sampling questionnaire investment and holding colloquia, using these two kinds of methods. This public participation investigates public's advice and suggestion by using research papers. Public scope includes villages near the plant, factories and enterprises. The public includes workers, peasants and students etc. of different ages, professions, cultural levels. In addition, according to the arrangement of the World Bank's experts, each project construction unit will release project information by the media of newspaper, TV, etc. The public can consult relative files of environmental assessment in appointed place arranged by sub-project construction unlit, and ES-10 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province the public can express standpoint and view adequately. The media information release was held from July 15, 2000 to July 31, 2000. The many meetings with public officials in the province coupled with the HDI surveys of public support show that these projects are extremely positive and well received by the public. No objections have been received by the city PMO's and there is no indication that there is anyone that is not is support of these projects or would try to stop their completion. Overall HRWPCP Project Assessment The HRWPCP projects have been properly formulated and they will form an important contribution to the achievement of the goals of the WPCP. The construction of WwTWs in the Huai River Basin has lagged behind the planned schedule of the WPCP, making it more important than ever to accelerate WwTW construction. Significant progress has been made in regard to the control of industrial pollution since the WPCP was formulated. However, domestic wastewater collection and treatment remains well behind the WPCP schedule. With respect to the environmental protection, the general urban plan and the drainage project plan, the design of collecting wastewater of proposed HRWPCP projects in the Shandong project cities has proved to be reasonable, as well as and the location selection of wastewater pump stations and WwTWs. The locations of the WwTWs meet the requirements of the local urban plans and the environmental protection. For the Chengwu Paper Mill, project alternatives have been comprehensively assessed, and the proposed project is technically superior and cost-effective. The project will greatly reduce water pollution loading downstream of Chengwu. Total Water Pollutants Removed The HRWPCP project cities will all benefit from improved surface water quality after implementation of the HRWPCP and construction of sewerage, WwTWs and industrial wastewater facilities. For the HRWPCP, the cities of Feicheng and Heze will benefit directly from the WwTW construction funded by the HRWPCP, and the surface waters adjacent to Rizhao upstream of the ocean will also be improved. The improved water quality treatment system at the Chengwu Paper Mill will have positive impacts. After the HRWPCP is implemented, situation of discharged and reduced volume of COD,r is shown in Table ES-5. Table ES-5: Total Discharged Volume of CODcr in HRWPCP Sewage Discharged Decreased Total control treatment volume after Title of project volume treaten volume standard volume treatment (*104 mJ/d) (t/a) (t/a) (t/a) Rizhao WwTW 10.0 10220 5110 10220 Ju county WwTW associated to 4.0 1752 5548 1752 sewage pipe network Heze WwTW 8.0 3504 11096 1000 Feicheng WwTW 4.0 1168 5402 1700 0.1296 (black Chengwu paper mill liquid) 2380 9989.2 3375 1.6378 (middle course water) ES- I August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province According to the maximum permitted discharged volume of each total volume control section in Table ES-5, discharged volume of COD before the HRWPCP is implemented and the distance between sewage discharged site and the section, without the HRWPCP, discharged volume of total volume control section in the related rivers will all exceed the standard. And, COD volume that enters into the river in 2000 will not satisfy the permitted volume either. After the HRWPCP is implemented, volume of COD that enters to related river will satisfy the requirement of WPCP goals in year 2000. After the project is implemented, decreased COD volume when operating in full load condition accounts for 46.9% of all reduced COD volume needed to satisfy total volume control target in year 2000 in Huaihe valley (not including Rizhao and Feicheng project). The construction of the project will have great effect on the realising of total volume control target in Huaihe valley administrated by Shandong. Table ES-6 provides the SIEP estimates of COD reductions associated with HRWPCP projects. Table ES-6: COD forecast results of Zhushui, Kangwang, Dongyu River COD COD C bfnit density atr CODig Cutn River Section Water period beore finisi afer Ctting Cti _______.__fn project proj ect density Down stream 2000m Zhushui to the taim water Low water 94.0 36.0 58.0 61.7 drainin outlet period Low water 137.2 63.7 73.5 53.6 Kangwang Upstream 100m to Flood period 63.6 26.0 37.6 59.1 junction with Hui river Nom- ae _ period 117.4 51.9 65.5 55.8 Low water 660.9 130.6 530.3 80.2 period Dongyu Zhangzhuang Flood period 85.8 46.3 39.5 46.0 Normal water 103.4 44.3 59.1 57.1 _______ _____ _ ______ _______ ______ p erio d I _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __I_ _ _ _ _ _ _ From Table ES-7, it can be seen that the COD quantity to the river for near the proposed WwTWs can be greatly reduced by the HRWPCP projects. The low water period of Zhushui River can reach standard of class V and the flood period of Kangwang River can reach class IV. But each water period of the other rivers can't reach the requirement of class V, although it can satisfy the water quality requirement of farmland irrigation. (water farming: COD<200 gil, dry farming: COD<300 g/l, vegetable COD<I5Omg/L). Table E-7: Water Quality Situation of Zhushui, Kangwang, Dongyu River after Finishing the HRWPCP Projects COD COD value of Single factor River Section Water period concentration standard Sinent (mg/l) (mg/]) Down stream 2000m Zhushui to the tail water Low water period 36.0 40 0.9 draining outlet Low water period 63.7 30 2.1 Kangwang Upstream ] 00m to Flo eid26.0 30 0.9 la,g,,g junction with Hui river Flood period 26__0_30__0_9 Normal water period 51.9 30 1.7 Low water period 130.6 30 4.3 Dongyu Zhangzhuang Flood period 46.3 30 1.5 Normal water period 44.3 30 1.5 ES-12 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Using the hydrological parameter offered by related river and COD cutting constant, SIEP forecasted the COD's contributive concentration and cutting concentration at control section of related river before anid after finishing each sub-project. The results are shown in Table ES-8. Table ES-8: Forecast Result of Water Quality Improvement to the Control Section of Related River Unit: mg/l COD's contributive concentration COD reduction River.SeCDo cotiuiv ocntain concentration after River Section Water period Before finishing After finishing treating the project project wastewater Lo e dr 31.5 7.6 23.9 Shu Xiazhuang Flood eriod 6.1 1.5 4.6 Normal water 18.9 4.5 14.4 Low water 35.5 12.1 23.4 period Zhuzhaoxin Yulou Flood period 14.3 4.9 - 9.4 Normal water 23.8 8.1 15.7 period Low water 15.5 7.2 8.3 period Daqing Wangtai bridge Flood period 1.2 0.5 0.7 Norma dater 14.9 6.6 8.3 Lowwater 493.1 115.9 377.2 period Dongyu Xuzhai brake Flood period 31.9 6.1 25.8 Normal water 92.3 16.5 75.8 ____ ____ ____ ___ ____ ____ ____ ___ period__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ From Table ES-8, the control section's water quality of related river can be improved in different degrees after each WwTW and Chengwu sub-projects are finished. Especially after alkali recovery, mid-piece water treatment plant of Chengwu paper mill has been put into operation, the mill's wastewater effluent can reach the standards completely. It improves the water quality of Dongyu River (Xuzhai brake section) significantly. In the second place, water quality of Shu River (Xiazhuang section) and Zhuzhaoxin River (Yulou section) can be improved in different degree after finishing WwTW matching to waste pipe network of Ju county and Heze WwTW. Because of the longer distance (approximate 100km) between Feicheng WwTW and Wangtai bridge section of Daqing River and less ratio of water quantity treated by works to flux of Daqing River, it is limited to improve the water quality of Daqing River after finishing the project. The discharge quantity of CODc, meets requirement of Total Quantity Control index made by local government. Furthermore, the quantity of SO2 and smoke dust emitted by oil-burning boiler of Heze wastewater treatment plant, boiler and alkali retrieval boiler of Chengwu paper mill also meets the index. After the project being carried out, the actual reduced quantity of CODcr is 4.82 to 1.92 times compared with the planned reduced quantity. ES- 13 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province So the construction of project would play an active role in reaching the target of Total Quantity Control in Huai river valley of Shandong province. However, the HRWPCP project cannot attain the total control indicators on its own in the short-term, and significant additional investment is required for both point and non-point source pollution to allow the Shandong river reaches to meet the water quality targets. Conclusions and Recommendations 1. The environmental conditions are serious and the environmental infrastructure needs of Shandong Province are high, and expanding rapidly. 2. The HRWPCP projects have emerged from a basin-wide prioritisation process, are well formulated, and have detailed and complete preliminary designs and cost estimates. 3. There is good public support for the projects based on meetings in the project cities and public opinion surveys. 4.. The proposed projects can meet financial and economic tests of sustainability and are affordable to the local citizens. 5. Social impacts, consisting mainly of land acquisition and resettlement, are addressed by a detailed RAP, and, in any case, are not significantly adverse. 6. The potential environmental benefits of the Phase HRWPCP projects are large, as reported in the previous sections. However, there are significant additional point and non-point water quality controls necessary, along with hydrologic needs to maintain minimum stream-flows, before the WPCP goals can be realised in the Province. 7. Potential construction and operational phase impacts of the proposed HRWPCP projects have been adequately assessed and no major issues have been identified. Detailed mitigation and monitoring procedures have been prepared which should adequately lessen the overall effect of these potential impacts. Monitoring costs have been included for this work and assignments detailed. 8. The recommendations included herein by the Shandong Research and Design Institute are rational and should be considered in the design and construction of these projects. These recommendations included: a) Main plants of discharging pollutants in the service scope of WwTW should enhance spot pollution source control. The concentration of wastewater discharge should attain the standard of accepting water of WwTW. b) The sludge treatment method of compost or making compound fertilizer should be further demonstrated in order to improve the benefit of WwTW. c) Other cities in Huai river valley of Shandong province should built WwTWs as soon as possible. ES- 14 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province d) Tertiary wastewater treatment equipment should be constructed in order to improve treatment effect when the economic conditions allow. Tertiary wastewater treatment provides positive condition of reusing wastewater. e) It is suggested that secondary biochemical treatment technique should be adopted when the second phase of construction of Rizhao WwTW is being carried out. f Special design of treatment field should be made before the white mud and sludge being treated in Chengwu subproject. 9. The overall conclusion is that the potential positive impacts are large, the potential negative construction and operation impacts can be successfully mitigated, and the projects contain no serious problems or "fatal flaws" in its formulation. The project components are essentially environmentally positive and should be approved. ES-15 August 2000   Huai River Water Pollution Control Project Environmental Assessment Shandong Province 1 INTRODUCTION 1.1 Huai River Water Pollution Control Project (HRWPCP) Background 1.1.1 Pollution in the Huai River Basin 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. The Basin is divided into two major systems: The Huai River System (190,000 kIM2) originating in the west and about 1,000 km long with 120 tributaries flows east to south through Hongze Lake and discharges into the Yangtze River. The Yi-Shu-Si River System (80,000 kM2) originates in the north, flows southwest and discharges into the Yellow Sea. The Grand Canal in the east connects the Huai 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 cause of the 1994 Huai River pollution incident was discharge of significantly 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 -vastewater during the dry season when the flow control gates and barrages are predominantly closed. Since 60 to 70 % of the annual river flow occurs during May-August time period, the gates maintain surface water levels but also store the incoming pollution. This accumulated polluted wastewater discharged during the flood season when the gates opened, resulting in significant downstream pollution. The pollution caused power stations to malfunction causing major impacts on the Hua Dong power network. Fishery resources were destroyed and agricultural and industrial damage was widespread. Water supplies were all affected resulting in significant impacts on the people of the downstream cities. Direct economic damages were estimated at over one billion Yuan. Consequently the State Council has 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 indicated that most of the stream sections in Shandong Province only met Class IV-V standards in some sampling points and it listed both natural and social elements as causing the serious pollution in the Huai River Basin as follows: * Rapid development of townships and village enterprises but with out-of-date technologies. Most of those town/village enterprises (TVE) utilise simple equipment with backward technologies that are no longer used by urban industries and no pollution control facilities are used. Wastewater with highly concentrated pollutant loads are drained directly into rivers. * Unreasonable industrial structure which produces high pollution but low output. Traditionally, the agricultural development is high in the Basin while the industry base was very weak. However, industry is developing quickly. In particular, those processing enterprises with low technical requirements, using the local agricultural products as raw materials, are developing most quickly, such as the light industries of papermaking and winemaking. 1-1 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Rapid urbanisation with large increase in sewage production. The sewage quantity from the middle and small size cities/townships increased several times from 1984 to 1993, and the direct result was that the water quality in many rivers in the Basin decreased by one class level. * Shortage of funds for environmental protection. According to the statistics in 1993, 730 million tons industrial wastewater was treated which was only 31.7% of the total in the whole Basin. Furthermore, only 12.4% of the treated wastewater reaches the required discharge standards while the average rate in the whole country is around 50%. The increase of investment for water pollution control is not keeping pace with the economic development speed. * Serious seasonal shortages of water. The water resources in the Basin are in shortage and the proportion of water flow to sewage discharge in many rivers in dry season is under 10:1, that means not enough water to dilute the sewage. Even the discharge treated by the secondary stage treatment plant needs 6 10 times water for dilution in order to reach the water quality standard class III for mainstream and standard class IV for tributary streams (based on GHZB 1-99 Water Quality Standard). * Incomplete environment protection organisation, failure in compliance with environmental laws. At the time, no independent environment protection agency was available in many counties and cities, and, there were not en-ough workers or management staff with the required high qualifications. As a result of these evaluations, the WPCP for the Huai River Basin defined the targets for the Basin as follows: e 3By 1997, all the wastewater discharges from industrial pollution sources should meet standards for effluent and the total COD should be reduced from 1.5 million tons in 1993 to 0.89 million tons (0.2638 million tons from Shandong Province.); * 3By 2000, the total COD should be reduced to 0.368 million tons (0.0647 million tons from Shandong Province.); 3 By 2000, the Huai River main stream, main tributaries, and rivers that are sources for urban water supplies should reach the Class III of the National Surface Water Standard. According to the draft "3H Basins Action Program Study for Water Resources, Water Pollution Control" prepared in November 1999 for the Ministry of Water Resources and the World Bank (known as the '3H Study' since it covers the Hai, Huai, and Huang rivers), the Plan goals have not been met in the Huai River Basin. This report indicates that significant additional resources are required to meet the Class III/IV standards of the Plan, and that rural sources such as uncontrolled township and village enterprises (TVEs) and non-point source pollution (mainly polluted agricultural and urban runoff) will remain a problem even after implementation of industrial controls and domestic wastewater treatment. Implementation of industrial and domestic wastewater treatment lags behind the proposed implementation schedule due to funding problems. The main pollutants are unionised ammonia, BOD, COD and bacteria levels, and the problems are especially acute in the dry seasons when base flows are reduced to zero or near zero levels. There is an existing system of 82 water quality control sections established in the Huai basin. Of these, 29 are trans-provincial stations that are monitored by the Huai River Basii Commission (HRBC). The remainder are monitored by local EPBs. 1-2 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province In 1999, the Chinese Research Academy of Environmental Sciences (CRAES) selected 45 major stations to investigate the current water quality of the Huai River Basin. Data from national environmental water quality reports between 1986 to 1993, 1994 for the Huai main stream, 1995 to 1996 for trans-boundary assessments and some incomplete data from 1997 and 1998 were used by CRAES to determine the existing water quality of the river basin. CRAES (1999) reported that of the 45 sections, only 4 reached their designated beneficial use classification. These were Bantai on the Hong River, Shakou on the Ru River, Baoying on the Li Canal and Jin Lake. The 41 sections that fail to meet the designated beneficial use classification were categorised in CRAES (1999) into 5 types as shown in Table 1.1. Table 1.1: Polluted Water Type Categorization in Huai Basin Type Comment I Water unsuitable as drinking water source. Mainly Anhui Control area in middle reaches of Huai system. 2 Polluted water crossing 2 or more Provinces. Mainly in Henan control area and Yi- Shu-Si River control area. 3 Pollution in shallow groundwater aquifers and of drinking water sources. Mainly Anhui control area. 4 Pollution of enclosed water bodies such as lakes and reservoirs. Hongze Lake control area and Nansi Lakes (in Shandong). 5 Polluted industrial and agricultural wastewater in urban areas and waters that, in addition, are aesthetically impaired. This category applies to all sub-basins. Source: CRAES (1999). The main pollutants identified were organic such as BOD, COD and ammonia nitrogen. Sections downstream of industries also showed elevated heavy metal pollution. Monitoring is undertaken on the stream flow and bottom sediments were not sampled. It is therefore probable that toxicity is understated in the sampling because of the transitory nature of stream flow pollution and industrial discharges. The Huai River also experiences seasonal low flow conditions, though they are not as severe as in the Hai Basin. The combination of low flow and gross pollution of the river system leads to environmental and public health problems such as over exploitation of groundwater resources and inappropriate use of wastewater. In addition, the Ministry of Water Resources monitors stations in the Basin. Work by the China Institute of Water Resources and Hydropower Research (IWHR) shows a long-term trend of degradation in the river system, both in terms of increased wastewater volumes and (consequentially) degraded water quality. IWHR (1999) provides the information shown in Table 1.2. Table 1.2: Pollution Trend in Huai River Basin Parameter Unit 1980 1991 1995 Polluted Length (Class > IV) % 45.0 72.6 88.1 Total Wastewater Volume Mm3/a 2550 3740 3600 Industrial Wastewater Mm3/a 2116 2955 2592 Domestic Wastewater Mm3/a 434 785 1008 Source: IWHR (1999). Mm3/a= million cubic metres per annum Some recent data was provided by Pacific Consultants with Danish Hydraulic Institute (PC/DHI) (1999) for the provinces of Henan and Anhui for the years 1996 and 1997. The industrial componelnt of this information was provided by the provincial Environmental Protection Bureaus (EPBs) and the municipal component was calculated by PC/DHI from water consumption and per capita COD 1-3 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province figures. (Note that information was not provided for Shandong Province, but the conclusions are believed valid in Shandong.) The municipal waste load shows an annual increase as may be expected however the industrial COD loads show dramatic decreases in both provinces, a result claimed as the effect of industrial discharge enforcement. The data is shown in Table 1.3. The "other" categories contributing pollution loads are agriculture and livestock of which the livestock is the larger by a factor of about 10 times. Table 1.3: Changes in Pollution Loads in Henan and Anhui Henan Anhui Categories COD (t/a) % Total COD (tla) % Total 1996 - Municipal 147094 11.3 62927 11.3 Industrial 709058 54.7 258760 46.5 Other 441289 34.0 234376 42.2 Total 1297441 100.0 556063 100.0 1997 Municipal 156110 20.9 63739 17.0 Industrial 170457 22.8 73840 19.8 Other 421292 56.3 236371 63.2 Total 747860 100.0 373949 - 100.0 Source: Pacific Consultants and Danish Hydraulic Institute (1999). It is undoubtedly true that the total COD loading in 1997 in Shandong Province also exceeds the WPCP goals, but data is not readily available. Although the municipal and industrial loading was under the plan goal for 1997, the WPCP did not account for the "other" sources of COD in the basin. In addition, the municipal and industrial progress since 1997 lagged behind plan goals so that the year 2000 goals of 64,700 tons for Shandong province have not been met. As part of these efforts of the State Council and the four Huai Basin provinces (i.e. Henan, Anhui, Jiangsu and Shandong Provinces) 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 PRC, the World Bank has listed the proposed project in the lending programme for WB fiscal year 2000/2001. Water pollution control in Henan and Jiangsu is being dealt with under a separate programme. 1.1.2 Shandong Province Overview Shandong Province covers most of the Yi-Shu-Si System area of the Huai River Basin. The mainstream of the Huai River does not flow through the Province. Pollution is mainly organic, with sections in urban reaches being more polluted than rural reaches. By December 1996, to control pollution in the Basin and in accordance with stipulation of the "Ninth Five-Year Plan," the province had closed approximately 460 small enterprises causing serious pollution. Other small and medium polluting enterprises have continued to be closed in the Basin, and other polluting enterprises have had their production curtailed in the dry season to reduce wastewater discharges. 1-4 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province The general location of Shandong Province is shown in Figure 1.1. (Note that all figures in this report are located at the end of the respective chapters.) 1.1.3 Provincial Government Shandong Province and its municipalities address environmental problems within the same institutional and regulatory framework found elsewhere in China. The provincial and municipal Environmental Protection Bureaux (EPBs) and the Urban Construction Commissions (UCCs) and their agencies share regulatory powers. The central government's general strategy for urban development has been to develop mechanisms for planning and management at the local level that will reduce waste and enable cities to function effectively using local resources. To arrive at the "best practices," local governments are encouraged to try new approaches. The results are then readily disseminated through the press, professional associations, technical intermediaries, and national ministries. Cities of moderate population size are often good testing grounds for bold experimentation and the largest cities serve best as national demonstration models. The HRWPCP has been formulated by the national government, local officials and the World Bank in a manner consistent with this approach by targeting a combination of large and moderate population sized cities for selected interventions. 1.1.4 Huai River Water Pollution Control Project (HRWPCP) and the World Bank The background and overall World Bank policies related to the urban environment in China are reported in the China Urban Environment Service report of December 1994. Table 1.4 gives a brief summary of the key issues and challenges, as presented in this report: 1-5 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Table 1.4: Environmental Background Problems, China (1994) Key Issue Items of Concern Water Demand High per capita water demand and new strategies must accord with reformed market organisation of the economy and rely more on price to guide enterprise and consumer choices. Current demand policy sets quotas for industrial water use and recycling but Chinese industries are consuming far above international best practice levels. There is a reported very low unaccounted-for-water (Ufw) of 8.4%, which is questionable compared to reported pipe breakage rates and pipe joint quality. Current water prices are far below the level required to encourage water conservation. Wastewater Present low treatment coverage and design and management problerns. All treatment cities should expand the sewerage coverage for a minimum 90% of the built- up areas within five years. Medium and large cities should provide a minimum of primary WwTW in a phased 1 0-year programme. Industrial Only 4.5% of industrial wastewater is treated but EPBs report that 50% of the Wastewater industrial wastewater meets effluent standards, which is seemingly inconsistent or indicative of inadequate discharge standards and enforcement. Solid Waste Landfills are poorly controlled and the provision of adequately engineered and managed landfills would provide the largest single improvement in solid waste handling in China. Environmental The chief management obstacle is the significant gaps in regulatory control Management and problems in implementation of existing regulations. A combination of infrequent monitoring and low fines for violations encourages non- compliance. Incentives for cost savings are much stronger than incentives for strong environmental performance. Tariffs Tariffs should be designed to allow full cost recovery. China has adopted the "polluter pays" principle but price setting is still politicised. Financial arrangements to cover operations cost shall be established. Affordability There does not appear to be a general affordability issue but the urban poor (probably 0.5% of the population) need to be protected from cost of living increases. In response to deteriorating water pollution conditions in the Huai River Basin, the national government in April 1996 produced the "Water Pollution Control Program and Nilth Five-Year Plan for the Huai River Basin", Working Group for Water Pollution Control Plan (WPCP). The Program contained definitive water pollutioni reduction targets for municipal and industrial waste discharges in the basin. However, the Program does not include consideration of rural sources such as TVEs and non-point pollutant loading to the rivers, which appears to be over 50% of the overall 1997 COD loading in the 1-6 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province basin (3H Action Plan, 1999). Implementation of the plan, nevertheless, is considered a big step forward toward acceptable levels of river water quality in the basin. The Huai River Water Pollution Control Project (HRWPCP) is also a key element of China's Agenda 21 programme. The sector-related goal for the project is: Improve quality of water for the entire basin by providing environmental infrastructure operated in a sustainable manner The HRWPCP objectives are to: 1. Upgrade water quality in the Huai River (Class III target) and its tributaries (Class IV target) within the two provinces. 2. Establish performing and efficient wastewater agencies. 3. Consolidate water quality monitoring system and procedures. To accomplish this goal and objectives, the outputs for each project component are: 1. Increase in municipal wastewater collection. _ -; 2. Increase in quantity of wastewater treatment. 3. Implementation of cost-recovery for wastewater operations. 1.1.5 EA Production 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. The Chinese final version was submitted to SEPA for approval in July 2000 and it is hoped that SEPA approval will be received by the end of August 2000. This English version is based on a SIEP translation of their Chinese version. 1.2 Description of the Study Area 1.2.1 Project Area and Population Within the overall Basin pollution control area, the Anhui-Shandong "project area", considered for the HRWPCP projects and EA, is shown in Figure 1.2. It comprises an area of about 187 thousand km2 and is heavily populated with almost 110 million people and contains many medium-size urban areas. The main agricultural activities of the area are growing cotton and grains. The area also contains some 150 major industrial plants manufacturing pulp and paper, beverages, food processing, tanneries, chemicals, fertilizer, etc, and about 3,000 small paper mills, tanneries and breweries. Within this area, Shandong Province is approximately 156,700 km2, of which 47,100 km2 is located within the Huai River Basin. The 1998 population of the Shandong Province was 86. 1 0 millioll, with some 23 million in urban areas. The portion of Shandong Province within the Huai River Basin was about 30 million total, with 1.2 million in urban areas. This EA covers all HRWPCP component projects contained in Shandong province and a separate provincial level EA covers HRWPCP component projects located in Anhui province. 1-7 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province 1.2.2 Economy of Shandong Province Shandong is one of the larger agricultural provinces in China. The rural population constitutes 75 percent of the province's total population with 6.87 million hectares of cultivated land. In 1996, the outputs of grain, cotton, oil crops, vegetables, fruits, and aquatic products were 43.33 million tons, 372,000 tons, 3.09 million tons, 55.2 million tons, 8.44 million tons, and 5.87 tons respectively. Such agriculture outputs were ranked at a leading position in whole of China. At present, Shandong has basically formed a complete industrial framework including energy, chemical, metallurgical, building materials, machinery-building, electronics, textile and food processing industries. The average income of urban and rural population were 4,494 and 2,086 Yuan respectively in 1996. The transportation networks in Shandong include roadways such as State Highways, Provincial Highways and secondary roads, railways to Beijing and Shanghai as well the railway networks within the Province, and the waterways including rivers and lakes in the Huai River Basin. About 45 to 55% of land in the project area is used for residential and industrial purposes. Other land uses include warehouses, education, public facilities, transportation, and cultivated land. Land use throughout the Province depends on the degree of urbanisation in each city. Based on site visits and discussions it can be inferred that the Shandong project cities are similar to .miany of the other Provincial cities in China. Although the area is still very rural, many of the people are involved in agricultural activities but supplement their incomes through being involved in either small businesses (private such as restaurants, bike shops, etc.) or transportation of goods or involvement in industries. In 1997 the PRC Government developed an urban poverty standard and the threshold was set at RMB 1700/year for the whole country, which correlates to 33% of the per capita average urban yearly income of RMB5 160.3. Comparison between the urban and rural poverty standards shows that the urban poverty standard is three times as high as the rural standard for China as a whole (Year 2000 Chinese poverty standard is 640 RMB/year, the Shandong Rural Poverty Standard is 1000 RMB/year for year 2000). The project cities covered in the HRWPCP within Shandong Province are shown in Figure 1.3. The following sections provide brief backgrounds into these project cities. Feicheng Feicheng County is under the administration of Tai'an with the total area of 1,263 km2 and with the total population inn the county of 990,000. The urban area of Feicheng is comprised of three parts. ie. Xincheng, Laocheng and Wangguadian with the population of 146,000 in 1999. The Project Area comprises Xincheng, which contained about 100,000 people in 1999. Feicheng has a long history and good agriculture outputs such as peach. It was also named as "Home of Peach". In addition, Feicheng is one of the power supply bases in Shandong province. The government finance revenue was 193 million yuan in 1997. The average annual income is 2,282 yuan per capita for rural population in 1997. 1-8 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Heze Heze was known as "Chaozhou" in ancient period with a long history of human activities. The natural conditions are favourable to agriculture and tourism. It is also famous as "Home of Peony", "Home of Calligraphy and Arts", " Home of Opera", "Home of Martial Arts". Heze prefecture is situated in the south-western plain of Shandong province and neighbours with Jiangsu, Henan and Anhui provinces. The south, north and west parts of the city are adjacent to Henan province and the southeast part of the city is adjacent to Anhui and Jiangsu province. The eastern part of the city is adjacent to Jining city in Shandong province. The Heze prefecture has jurisdiction over 8 counties and 1 city. Heze City is the only city in Heze prefecture. The Project Area comprises of Heze City. The total area of the city is 1,485km2 including an urban area of 17 km2 with an urban population of 288,000 in 1999. There exists over 80 industry categories, among which local main industry sectors include chemical, mechanical, electronics, food processing, power generation etc. The rural economy is gradually developed and also one part of grain and cotton production bases of China and Shandong province. Heze City will become a regional centre in south-western Shandong in future in accordance with the city development master plan. It will play a significant part in regional transportation, energy ,eneration and transmission. The city will be decorated with the features of flowers and lakes. Rizhao The Rizhao Municipality was set up in 1985 and was promoted to prefecture level. The municipality is divided into Donggang District, Ju County and Wulian County. The total area of the municipality is 5368 km2 and amounting to 3.38% of the area of whole Shandong province. The Project Area comprises of Rizhao City, which lies within Donggang District (see Figure 1.4). The population of Rizhao City was 272,000 in 1999. The GDP reached to 17.5 billion yuan in 1998 and was increased by 13.0% in comparison with GDP in 1997 based on the comparable prices, in which, the GDP of the primary industry is 4.95 billion yuan with the annual growth rate of 6.9%; the secondary industry is 6.4 billion with the annual growth rate of 17.0%; and the tertiary industry is 6.15 billion with the annual growth rate of 13.5%. The suitable natural conditions help Rizhao to promote the development of the farming, forestry, animal husbandry and fishery. All the yields of grain, groundnuts, fruits, tobacco plant, silkworm, tea as well as aquatic products, poke, steak, mutton are in an important position of whole province, further, Rizhao is an important part of production base of grain, oil, pig and apple in Shandong Province. At present, the main industries of Rizhao City include brewing, paper-making, machining, building materials, food processing, textile, chemical, electronics, etc. The convenient and inexpensive transportation systems with deep-water port are advantages for development of seaboard industries. The abundant farm and sideline products provide a possibility to develop local light industry. 1-9 August 2000  Huai River Water Pollution Control Project Environmental Assessment Shandong Province Ju County Ju County is one part of Rizhao Municipality and is located adjacent to the Shu River within the Huai River Basin. The current population of the county is 950,000 with 5.5 billion yuan of GDP. The population planned in the urban area, also know as Chengyang (see Figure 1.4), is 100,000 in year 2000 and 200,000 in year 2020 respectively according to the Ju County's development master plan. The textile and other light industries, food processing industry have great potential and would play an important role in the Ju county industry development in the future in accordance with the existing industry structure. Further, the chemical, mechanical processing, building materials would be gradually developed and a reasonable structure of industry production system on the basis of agricultural products would be formed. There are three main land transportation paths in the town of Ju county i.e. Yan-Shan line, Shi-Cong line, and Ju-Ar line. It is very convenient to go to other cities through these three land roads. Chengwu Chengwu is a counity under the administration of Heze prefecture government and also has a long history of culture and agriculture productive activities. Chengwu Paper Mill is a State Owned Enterprise (SOE) located in Chengwu near the urban area of thengwu town. The financial revenue of Chengwu County is 337 million yuan in 1996. The average annual income is 1,772yuan per capita for rural population. The Mill uses straw as the raw material to produce some 32,000 tons of pulp per year and 50,000 tons paper per year (additional pulp is obtained from other pulp mills in the area). The paper product is reported to be of high quality and is used for writing and toilet paper. The Mill employs some 1500 people. The Mill currently uses up to 20,000 m3/d of water from private groundwater sources for pulp and paper production. Black liquor created through the pulping process, together with recycled water from the pulp bleaching and paper manufacturing process is currently treated using chemically assisted flocculation and pH correction before being discharged to Dong Yu river. 1.2.3 Regional Water Resources An understanding of the regional water resource management in the Shandong Province is necessary in order to better appreciate the water quality issues of the study area. The significant urbanisation and industrialisation in the HRWPCP cities is putting extreme pressure on surface waters. The following section introduces the local water resource issues of these cities. It is important to realise that, in addition to the main rivers flowing through the cities, there are many small drainage channels and tributaries in these urban areas that receive much of the domestic and industrial wastewater discharges, so the environmental needs extend well beyond the larger, classified surface waters. The Huai River lies in 31