China - Hubei Hydropower Development in Poor Areas Project

Report No. 23577 Report No: I068049 <--Please check for duplicates! Integrated Safeguards Data Sheet (Updated) Date ISDS Prepared/Updated: 01/24/2002 Section I - Basic Information A. Basic Project Data Country: CHINA Project ID: P068049 Project: Hubei Hydropower Devt. In Poor Areas Task Team Leader: Barry Trembath Authorized to Appraise Date: September 6, 2001 IBRD Amount ($m): 125.00 Bank Approval: April 16, 2002 IDA Amount ($m): Managing Unit: EASEG Sector: PH - Hydro Lending Instrument: Specific Investment Loan (SIL) Status: Lending I.A.2. Project Objectives: The project has three objectives: (a) expand electric power generation capacity in Hubei in an economically and environmentally sustainable manner in order to facilitate economic growth; (b) commercialize county level generation companies in Hubei; and (c) contribute to poverty alleviation efforts in poor communities in Hubei. I.A.3. Project Description: Components: 1. Dongping Hydroelectric Power Station including: a) Construction of a hydroelectric power station at Dongping, Xuan-en County, in Hubei, including: (i) a single purpose concrete arch dam 134 meter (m) high with a crest length of 268m; (ii) an underground power house with installed capacity of 110 (2x55) megawatts (MW); and (iii) an associated step-up substation. b) Carrying out of a program of institutional strengthening of Dongping Company, including: (i) development and implementation of a financial and management information system; and (ii) provision of training to Dongping Company staff in project management and hydropower station operation. c) Development of a plan for enhancement of poverty alleviation efforts in the Dongping project area to be funded from fiscal revenues accruing to Xuan-en County as a result of the Project. d) Compensation, resettlement and rehabilitation of approximately 3,047 affected persons. 2. Lajitan Hydroelectric Power Station including: a) Construction of a hydroelectric power station at Lajitan, Laifeng County, in Hubei, including: (i) a single purpose 39 m high single purpose concrete gravity dam with a crest length of 200m; (b) a surface power house with installed capacity of 36 (3x12) MW; and (iii) an associated step-up substation. b) Carrying out of a program of institutional strengthening of Lajitan Company, including: (i) development and implementation of a financial and management information system; and (ii) provision of training to Lajitan Company staff in project management and hydropower station operation. c) Development of a plan for enhancement of poverty alleviation efforts in the Lajitan project area to be funded from fiscal revenues accruing to  Laifeng County as a result of the Project. d) Compensation, resettlement and rehabilitation of approximately 2,565 affected persons. 3. Songshuling Hydroelectric Power Station including: a) Construction of a hydroelectric power station at Songshuling, Zhushan County, in Hubei, including: (i) a single purpose concrete gravity dam 65m high with a crest length of 128m; (ii) a surface power house with installed capacity of 50 (4x12.5) MW; and (iii) an associated step-up substation. b) Carrying out of a program of institutional strengthening of Songshuling Company, including: (i) development and implementation of a financial and management information system; and (ii) provision of training to Songshuling Company staff in project management and hydropower station operation. c) Development of a plan for enhancement of poverty alleviation efforts in the Songshuling project area to be funded from fiscal revenues accruing to Zhushan County as a result of the Project. d) Compensation, resettlement and rehabilitation of approximately 465 Affected Persons. 4. Xiakou Hydroelectric Power Station including: a) Construction of a hydroelectric power station at Xiakou, Nanzhang County, in Hubei, including: (i) a multi-purpose concrete arch dam 85m high with a crest length of 195m; (ii) a surface power house with installed capacity of 30 (2x15) MW; and ' an associated step-up substation. b) Carrying out of a program of institutional strengthening of Xiakou Company, including: (i) development and implementation of a financial and management information system; and (ii) provision of training to Xiakou Company staff in project management and hydropower station operation. c) Development of a plan for enhancement of poverty alleviation efforts in the Xiakou project area to be funded from fiscal revenues accruing to Nanzhang County as a result of the Project. d) Compensation, resettlement and rehabilitation of approximately 1,043 affected persons. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) Geographic Location All four projects are located in mountainous western Hubei Province, PR China, on tertiary or quaternary rivers that eventually drain to the middle reach of the Yangtze River. The specific location of each project is as follows: I Dongping Hydropower Station - on the Zhongjian River, in Xua'nen County I Lajitan Hydropower Station - on the Youshui River, in Laifeng County I Songshuling Hydropower Station - on the Guandu River, in Zhushan County I Xiakou Hydropower Station - on the Ju River, in Nanzhang County - 2-  Key Environmental Characteristics The four small/medium size hydropower developments will each consist of a concrete dam, above ground or underground power house, switch yards, ancillary facilities, and transmission lines. Because of their limited seasonal storage they will tend to operate on base load in the wet season and peak load in the dry season. Each project will exploit sections of tertiary rivers that are otherwise already dammed downstream, and in the case of Dongping, Lajitan and Xiakou, upstream as well, to generate electricity or impound water for agriculture/municipal water supplies. The existing dams have already had a significant impact on eliminating migratory fish populations from the respective project areas, and reducing the level of productivity within these remaining reaches. Due to the steep mountainous geography of the region, the reservoirs will be long narrow bodies of water, with relatively little inundation of valuable land. The lower elevation valley areas in which each reservoir will be formed provide little in the way of forest resources and, thus, little in the way of suitable wildlife habitat. This is primarily due to the steep rocky terrain and thin soils that support primarily woody shrubland type vegetation. In those areas where terrain and soils are more conducive to forest growth, decades of human habitation have resulted in native forests being replaced by farmland, orchards, or cultivated commercial forests. The transmission lines will primarily extend across mountainous terrain, but will be designed and constructed so as to take advantage of topographic features so as to minimize the need to remove vegetation. Transmission lines will extend from substations that will be constructed at each damsite, and connect to new substations that will be constructed on vacant wasteland on the outskirts of existing communities. Key Social Characteristics The counties, within which the four hydropower stations are proposed, are among the poorest counties in all of China. The average annual income for workers within the project areas ranges from 1,047 RMB in the Dongping project area to 2,047 RMB in the Xiakou project area. By comparison, the annual salary of urban and rural residents in more developed communities along the Yangtze River is in the range of 4,000 RMB to 9,000 RMB, and the net income per capita is in the range of 2,000 to 3,000 RMB. The local economies depend primarily on agriculture. However, agriculture productivity is limited by the high relief topography that limits the availability of land suitable for agriculture, and generally produces poor quality, thinly layered soils. The exception is the limited amount of rich valley bottom paddy land, most of which has been developed on the Quaternary River terraces and terrace fragments. The high relief terrain conditions make road building a very costly endeavor, which leads to these project affected areas being economically isolated from more productive areas of Hubei Province located outside of the mountainous western region. There are no major industrial manufacturing enterprises within the four project areas, although there are minor industries based on processing agriculture and forestry products. Difficult transportation and chronic power supply shortages combine to limit the region's productivity. The dependence on seasonal agriculture and minor manufacturing, in turn, provides for low employment, low average income levels and low standard of living. -3 -  The project areas are reasonably well served by schools and basic public health and medical services. However, for more serious medical situations, the four project areas can provide only limited medical support. Otherwise, people must seek medical attention outside the region, which is difficult to do given the current economic conditions in the project-affected areas. Proximity to Protected Areas There are no national or provincial parks, protected areas, or nature preserves within the project affected areas of the four proposed hydropower development projects. Critical Natural Habitats There are no critical wetland habitats. Although karst features are found along the affected river reaches of the Dongping and Lajitan reservoir areas, a Karst Biodiversity Assessment indicates that the karst features do not provide critical habitat for rare or unique flora and fauna. Culturally/Socially Sensitive Areas Resettlement Action Plans have been prepared, and Social Assessments carried out, for each project. County-level surveys for cultural and heritage resources have been carried out for each of the four project areas. To date, no significant archaeological or heritage resources have been identified, that could be affected by any of the projects. Social assessments were commissioned by the Borrower to ascertain the views of people in the project area, including members of minority nationalities, regarding project impacts and opportunities to share in project benefits. This process has included consultations with members of minority nationalities, disclosure of project-related information, and a legal assessment of minority rights. The study findings conclude that the Tujia, Miao and Dong people in the project area do not engage in distinctive activities or behaviors that may make them vulnerable to disadvantage because of the project. In fact, there is a high degree of acculturation within the local area. Those consulted, including members of minority nationalities, reported that minority languages are not spoken within the project area, and that there are no discernible patterns in natural resource use, dress, appearance, cultural values or activities, access to services, or standards of living. Those consulted consistently indicated that official ethnic identity will be irrelevant as a determinant of the distribution of project-related impacts, including opportunities to share in the social and economic benefits derived from the project B. Check Environmental Classification: A (Full Assessment) Comments: Project involves construction and operation of four new hydroelectric facilities and reservoirs, as well as new transmission lines and substations. Therefore, project has been rated as a category A project, which requires a full Environmental Impact Assessment. At the outset of project preparation, the Bank's Policy Safeguards Specialist indicated that each of the four sub-projects would require a separate EIA, - 4 -  but that a single Summary EA would be acceptable for the overall project. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) Yes Forestry (OP/GP 4.36) No Natural Habitats (OP/BP 4.04) No Safety of Dams (OP/BP 4.37) No Pest Management (OP 4.09) No Involuntary Resettlement (OP/BP 4.12) No Indigenous Peoples (OD 4.20) Yes Cultural Property (OP 4.11) Yes Projects in Disputed Territories (OP/BP/GP 7.60)* No Projects in International Waterways (OP/BP/GP 7.50) No *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. There are three primary safeguard issues/impacts that are triggered by the four projects. These include: Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) - Evironmental impact assessments (EIA) and environmental management plans (EMP) conforming to OP4.01 have been prepared for each of the four projects. In addition, a Karst Biodiversity Assessment was completed as a supplementary report to the Summary EA, to evaluate the potential impacts on karst features within the project areas, in conformance with OP4.04. An Aquatic Ecological Assessment of the four project affected rivers was initiated in mid-October 2001 for completion by the end of December 2001. The most important impacts are: Loss of riverine aquatic environment for a distance of 32 km (Dongping), 33 km (Lajitan), 19 km (Songshuling) and 18 km (Xiakou), and replacement with lacustrine environment; Potential dewatering of short sections of river downstream of each dam during dry season operations when reservoirs are being recharged; Potential dewatering of the Luxiawan Irrigation Canal immediately downstream of the Xiakou project; Exposure of cut and fill slopes to the forces of erosion during construction of the hydropower projects, roads, and resettlement villages; Short-term impact of large construction work forces moving into rural areas which have relatively sparse populations at present; Some tree cutting and vegetation clearing along short sections of the transmission line rights-of-way, where clearance distances cannot be provided by tower siting on high points of land; and Potential effects of noise and electro-magnetic flux (EMF) from transmission lines and substations. Involuntary Resettlement (OP 4.30) - A total of 7120 people will be - 5 -  involuntarily resettled as a result of the Hubei Hydropower Project. The majority of persons to be resettled are rural people involved in agriculture. A detailed resettlement program, including a Resettlement Action Plan (RAP) has been prepared for each of the four subprojects. The resettlement program for the overall project follows all applicable Chinese State, Hubei Province laws and regulations, and World Bank policies and guidelines. Procedures for handling grievances and complaints are adequately addressed. Safety of Dams (OP 4.37, BP 4.37) - A Panel of Experts (POE), comprising relevant international and national technical specialists (Cheng Kunhuang [Chairman], Fabio Villegas, Michel Lino, Wang Xianru, Xu Ruichun, and Chang Xiaolin), were appointed to review key technical aspects of the project, including but not limited to: dam safety under extreme flood conditions; engineering geology in Karst conditions; hydraulic structures design; flood hydrology; major equipment layout and specifications; concrete technology; and construction of dams and hydropower facilities. The POE submitted its first report on 30 October 2000. In its report, the POE concluded that the Dongping and Xiakou concrete arch dams, will be located on competent rock and will have an inherently high factor of safety in case of being overtopped by a probable maximum flood (PMF). Further, they concluded that dam stability concerns related to overtopping are not so critical for the the Lajitan concrete gravity dam due to its relatively low crest height, and small reservoir volume, which is of the same order of magnitude of the predicted PMF. The POE also notes that the Songshuling concrete gravity dam will also hold a relatively small reservoir, but recommend that measures to protect the dam from overtopping be incorporated into the dam, including such things as parapet walls close to both abutments, and relocation of gantry and other equipment away from the dam crest. For the Xiakou dam, the POE has recommended that the routing of the PMF be analyzed and the spillways and dam crest designs be adjusted to facilitate potential overtopping. Also related to the issue of the PMF, is the ability of spillway gates to function effectively to release flood waters at all four dams. The POE notes that there are recent examples of dams constructed to high standards, equipped with modern gates manufactured by well reputed manufacturers that have failed to open during extreme floods. Therefore, the POE has recommended that the designers analyze emergency scenarios of gates failing to open, the consequences of such events, and measures to address this issue. The POE notes that the Donping reservoir will be situated in a highly karsified limestone zone in which current leakage estimates are quite high (i.e., 1 m3/sec), and has recommended that additional analysis be carried out to more accurately estimate the leakage rate, and design engineering measures to reduce it, if necessary. Likewise, the POE noted that the Lajitan dam will be located in a moderate to highly karstic limestone zone, in which leakage is occurring. The POE has recommended that further investigations of the karst system be carried out, and that grout curtains be installed to prevent seepage through the foundation and around the abutments. For the Xiakou project, he POE has recommended that the stability of the banks under the loads imposed by the dam be studied, and that investigations be carried out regarding the possibility of leakage from the reservoir towards the Xiaoxiahe River valley. Leakage is not an issue for the Songshuling dam. -6-  Regarding seismic stability, the POE concluded that the Songshuling project is located fairly close to the Qingfeng Fault, an active regional fault. Therefore, the POE has recommended a specific review of the earthquake intensity and prediction of the risks of reservoir-induced earthquakes. The POE indicated that the conclusions and results of the Chinese designer's stability studies are in accordance with China's current criteria. However, due to the close proximity to the fault, recommendations have been made for increasing the dam's stability by including additional structural measures in the design. Immediately upstream of the Dongping Project, there is a large volume historic landslide (Baijiabao Landslide) with a volume of 2.4 million m3. The POE concluded that the stability of this landslide could have a critical impact on dam safety. Therefore, the POE has recommended that additional investigations be carried out to support designs of stabilizing works necessary to guarantee the stability of the Dongping dam. Indigenous Peoples (OD 4.20). On the basis of the social assessments described above OD 4.20 does not appear to be applicable. However, this determination will be reviewed as part of the appraisal process. II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. Each of the four proposed hydropower projects represents another development in a series of existing and proposed cascade hydropower projects on the respective river basins. The primary cumulative impact is the diminished length of unregulated torrented river system within the four river basins. II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. The primary long term operational impact associated with the Hubei Hydropower Project is the loss of riverine aquatic environment for a distance of 32 km (Dongping), 33 km (Lajitan), 19 km (Songshuling) and 18 km (Xiakou), and replacement with lacustrine environment. It is not possible to fully mitigate this type of impact. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) Three viable alternatives to the proposed Hubei Hydropower Project have been reviewed as follows: 1) do not proceed with the proposed Hubei Hydropower Project or any of its four subprojects (the "No Action" alternative); 2) build a single thermal generating station to provide power to the provincial grid; and 3) construct the four hydro projects but select different sites for locating the dams and/or generating stations. The benefits of proceeding with the proposed hydropower project significantly outweigh the negative consequences of adopting the 'No Action' alternative. A single thermal power project located somewhere in the region, which is able to provide adequate base, shoulder and peak power to the provincial grid, could be constructed at a lower capital cost than the four hydropower projects combined. However, the additional operating and -7 -  annual investment costs of the thermal plant option would be much higher than for the hydropower alternatives, resulting in more costly electricity on a per kilowatt hour basis. Although a regional thermal plant would provide much needed electricity within the region, the cost to the environment in terms of atmospheric emissions, coal ash disposal, water quality concerns, etc., would be orders of magnitude higher than for the hydropower alternatives. A number of possible locations have been examined for each of the four hydropower sites as part of the feasibility study. The best location for each project has been determined based on the ability to optimize power production, and minimize environmental and socioeconomic impacts. Considering the various project alternatives evaluated, the proposed Hubei Hydropower Project, with its four identified sites, is the best alternative for meeting the project objectives -- providing electricity to the Hubei Province power grid at minimal cost to the environment; providing economic development opportunities within the project-affected areas; and alleviating poverty. II.D.3. Describe arrangement for the borrower to address safeguard issues To minimize the effects of peaking operations on downstream riparian flows during the dry season, when there is no spilling, the EMP provides that minimum releases of 30 percent of the average driest month flows (i.e., January) to ensure the river channels downstream of the respective power houses and upstream of major tributaries that contribute augmentation flows, are able to sustain fish and other aquatic organisms. This only applies to operation of the Lajitan and Songshuling projects, since Dongping will empty to the Shuibuya reservoir, and Xiakou will follow the existing status quo situation. However, for Xiakou, a constant 0.3 m5/s supply of water will be provided to the Juxiawan Irrigation Canal throughout the construction and operation periods, to ensure the paddy lands presently irrigated by the canal are not adversely affected by the project. With regard to environmental management during construction, each project has identified measures for minimizing soil erosion and sedimentation of watercourses, treating aggregate and concrete process and domestic wastewater from the construction zone and camps, disposing of construction debris and domestic solid waste, controlling noise and dust, locating and constructing transmission lines so as to minimize impacts to vegetation, and minimizing impacts of EMF on local populations during operation. The program of environmental monitoring is adequate as is the institutional mechanism for overseeing the environmental protection and monitoring activities. A realistic budget for carrying out environmental management of each project, both during construction, and later during operation, has also been developed. Environmental compliance of the resettlement program will be monitored by the Project Environmental Management Office (EMO) and an external monitoring and evaluation unit, represented by the East China Investigation and Design Institute (ECIDI). Environmental Construction Inspectors (ECIs) representing the Project EMO's will need to ensure the environmental specifications are implemented effectively. Overall, the environmental success of the resettlement program is dependent upon development and implementation of environmental specifications. Effective surveillance and monitoring is the key to successful implementation. - 8 -  To ensure the environmental aspects of each project's resettlement program are implemented effectively, a number of measures have been identified in each project RAP. The RAPs include adequate environmental specifications for locating, designing and constructing new resettlement communities, including associated water, wastewater, transportation and other infrastructure components. They also address the requirements for reservoir clearing and sanitation. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. To obtain public opinions of the project and to strengthen environmental consciousness, four opinion and data surveys were carried out for each project, two during the development of the initial draft EA, and two when the draft EA was being revised to bring it into compliance with World Bank EA standards. The questionnaires, results and analyses are fully presented in the EA for each of the four projects. Meetings were held with the local county peoples congresses, standing committees and consultative committees, the media, workers associations, farmers, and local residents. All organizations within the project affected areas indicated strong support for the respective projects, primarily because it is believed that the projects will contribute much needed economic development within each of the four counties, thereby helping to alleviate poverty. In addition to the public consultations, project evaluation and review meetings were also held. These were attended by design institutes, academics, state and provincial project sponsors, local county environmental protection bureau staff, and staff from local county resource management agencies. The group systematically reviewed the project environmental impacts and proposed mitigation measures. The projects were subsequently approved by the Hubei Province Environmental Protection Bureau, Hubei Provincial Finance Department, and State Power Corporation. Public disclosure of the draft EA report for each project was carried out by providing the EA reports to the environmental protection bureau office of each project affected county in autumn 2000. Advertisements were placed in the local newspapers and notices broadcast on television, inviting members of the public to review the documents and provide comments to the project sponsors. The public disclosure activities are fully described in the respective EAs and in the Summary EA. In addition to the public consultation and disclosure process carried out as part of EA preparation, public consultation was also carried out in preparing the RAPs and as part of the Social Assessment. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [XI S1. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas I S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable -9-  [ S3. - No safeguard issues [ SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 10/1/2000 Date of "in-country" disclosure 11/1/2000 Date of submission to InfoShop 1/8/2001 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) 11/14/2001 Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank 7/1/2000 Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Dam Safety Management Plan: Expected Actual Date of receipt by the Bank 1/1/2006 Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Borrower's social assessment indicates that OD4.20 is not applicable; however, Bank will conduct its own asssessment as part of the appraisal process. OP4.37: Bank procedures do not require disclosure of dam safety plans. Signed and submitted by Name Date Task Team Leader: Barry Trembath Project Safeguards Specialists 1: Robert D. Crooks Project Safeguards Specialists 2: Chaohua Zhang Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Glenn S. Morgan 1/16/2002 Sector Manager/Director: M. Farhandi 1/15/2002 For a list of World Bank news releases on projects and reports, click here - 10 -