China - Yunnan Environmental Project : environmental assessment report (Vol. 1 of 3)

E.23 YEP COORDINATIVE LEADING GROUP YUNNAN ENVIRONMENTAL PROJECT OFFICE Yunnan Environmental Project ENVIRONMENTAL ASSESSMENT REPORT DRAFT EXECUTIVE SUMMARY February 1996 Yunnan Institute of Environmental Sciences in association wnith | Montgomerv Watson GHK/MRM International Hunting Technical Services Severn Trent Water International under sssignment from Overseas Development Administration  1. INTRODUCTION I 2. ADMINISTRATIVE AND INSTITUTIONAL FRAMEWORK 3 3. PROJECT DESCRIPTION 3 4. BASELINE DATA 5 4.1 General 5 4.2 Climate 5 4.3 Water Resources 5 4.3.1 Dianchi Basin 5 4.3.2 QujinF 6 4.3.3 Gejiu 6 4.4 Water Qualiv 7 4A. I Chinecs W-ater Quality Classification 7 4.4.2 Dianchi Basm 7 4.4.3 Qujing 10 4.4.4 Gejau 10 4.5 The Causes or Environmental Degradation in VuDnan le 4.5.1 Lake Dianchi: Ecoloeical Degradation 10 4.6 Dianchi Basin Aquatic and Terrestrial Ecology 12 4.7 Solid Waste Management 12 S. CONSIDERATION OF ALTERNATIVES 14 5.1 Project Selection 14 52 Project Design Alternatives 14 6. ENVIRONMENTAL BENEFITS 1i 6.1 Lake Dianchi Basin 15 6.1.1 Kunm in Wastewater Treatment and Sewer Network 16 6.1.2 Rural Townships Sewerage 17 6.1.3 Industrial Pollution Control 17 6.1.A Kunming Water Supply 18 6.1.5 Kunming Sanitrv Landfill 18 6.1.6 Environmental Managemert and Monitoring 18 62 Qujing 19 62.1 Water Supply 19 62.2 Wastewater rreatment 19 6.23 Solid Waste Management 19 6.3 Gejiu 19 7. ADVERSE IMPACTS AiND MMITGATION MEASURES 19 7.1 Land Acquisition 19 7.2 Resettlement 24 73 Wastewater Treatment Impacts 24 7.4 Solid Waste Disposal Impacts 24 7.5 Construction Spoil Disposal 24 7.6 Industrv Pollution Control Impscts 24 7.7 Other Construction Impacts - 25 Table 1. List of Prolects Under YEP. 4 T able 2. Mean Annual Climatic Conditions in the Three Project Cities 5 Table 3. People's Republic of China; Water Quality Classification System (GB 383&8-). 7 Table 4. Summarv of Phosphorus Loads to Lake Dianchi (1995). 8 Table 5. Causes and Consequences of Lake Dianchi Ecological Degradation. 11 Table 6. Lake Dianchi : Estimated Phosphorus Loads in Tone's per Year. 16 Table 7. Miticaion Measures for all Main Adverse Impacts. . 20 Table S. Land Acquistion and Rcesdemcmt in YEP World Bank Funded Projes. 23 Figurc l. Base Map of Yunnan Province 2 Figure 2. Key Features of Lake Dianchi 9 Figure 3. Dianchi Lake Ecological Degadation. 13  EXECUTIVESUMMRY 1. Introduction Yunnan Province is located in the south west of the People's Republic of China (PRC) and is bordered to the nordh by Sichuan Province. to the east by Guizhou and Guangi Provinces and to the south and west by Vietnam. Laos and Mvanmar I Figure 1). The province has a total [and area of 394.000 km2 and a population of 38 million. * hich is largely nuraL some 81% being involved in agriculture. The provincl capital and major industnal centre. Kunming. is by far the largest city (population 1.8 million) and dominates the cconomy ot the province. The next lrgest cities, also significant industrial centes, are Qujing and GCejiu. %siih populations of 220.000 and 130.000 respectively. The north west ot- the province is dominated by the south astern Himalayas and incluces the sources of three major rivers. the Jingshapiang twhich discharges to the Chanljiang (Yangtze)). the Lancangiang (Mckong) and the Nu;.ang (Salweeni. The north east area includes the source of the Nanpanjiang (Parl River). The south of the province ts tropical and the central and eastern areas comprise a plateau and fertile lake basins al an elevation of about 2.OOOm. Rapid economic erowth over the past 15 years has resulted in severe enviromuental degradation in and around the three project cities and even in some rural areas. The environment in many areas in the province is under severe stress. The principal cause of degradation of the water environment in wuban areas is the lack of effective control of polluting discharges to watercourses. The situWon is exacerbated by the substantial underpricing of water and cnvironmental services such as wastewater disposal which leads to v%asteful consumption and hence pressure on scarce water resources. This is particularlv the case in the Lake Dianchi Basin. which includes Kunming. where water resous are particurly lmited and are thweatened in tersm both of water quality and quantity. Lake Dimchi receives discharges of municipal and indusrial wastewater fxn Kunming and its suburbs. H ,wee, the water resources of Lake Dianchi Basin are very limited. per capita run off being of the order of 5% of the Yunnan and 3%'o of the world average As a consequence of the inadequate water resources for Kunming the lake provides up to 50%/o of the City's water supplies even in an average rainfill year. Further increases in demand will result in even more reliance on. and recycling of, the like for supplies of potable water at a time when its quality wil continue to decline if remedial interventions are not implemented in time. The repeated recvclinz of wastewater has resulted in substantial increases m the loads of nutrints, principally phosphorus and nitrogen'. discharged to the lakce. Te sitlation is exacrbated by the presence of a number of phospherus and nitrogen-based fertiliser factories in the basin. exploiting the extensive local phosphate-bascd mineral resources. lbe lake receives discharges of nutrient-rich wastewater from these factones and also run-off from agricultural areas in its catchmenL As a result of the high nutrient loads Lake Dianchi is already in an advanced state of cutrophication which is manifestLd in part in increasing problems in potable water teatnent in Kunming. Growth in the other urban centres of Yunnan. principally Qujing and Gejiu. coupled with inadequate control of polluting discharges. is causing similar problems of water quality and pressure on limited water resources. A major environmental ma.er plan study for the Dianchi Basin. Qujing and G3jiu, funded by the UK Overseas Development Administation (ODA) is due for completion in 1996. This study has identified a set of major priority investments aimed at rehabilitation of water quality, principally in Lak-e Dianchi. and improving the effectiveness of water resource utilisation and dte management of solid and liquid wastes. DJRFT page 1 of 25 09 Febrary 1996  BASE MAP OF YUNNAN PROVINCE FIGURE 1 .k-n 'I -~~~~~~~~~~~~~~~~1~~~k > ^ ;,1 \ -. A SichuanC -i%l Cs-3 ISA- MYANMARF (Burmna) U I I Q -- i z e. ,,G.hou ',L ' '-~ I , f --G - \ I~~~~It I' . \ a\s ~~VIETNAM u9 ~~~~~LAOSf _ _ -- Pdh~ r,' pYfmS sazdy Scle r, u1.mnmiIa.wwly 0 50 100 150 200Km Plow con  Execuive Swmar In order to address the above conccrns the Yunnan Enviromnental Project (YEP) would focus on improving the state of the environmenL principally in terms of water quality, via a range of investments with the objectives of * improving water qualitv. mainiv in Lake Dianchi. and water resources management to allow sustained safe beneticial use: * improving standards of municipal wastes management * institution of mcasures to strengthen control of industrial pollution and to improve water and matenals utilisation: * enhancing lacilities for the effective monitoring of enviromnental qualitv in Yunnan: and * strengthening of policies and institutional arrangements for water quality managemcnt; water ard %asevuater facilitics operations, environental regulation and rmanagemnent training. Technical support and trainine u ould be provided to utility and environment sector agencics in Yunnan at provincial and municipal levels, including enviromnctnal protection bureaux (EPBs) and monhoring centres IEMCs. municipal utilitv operations and finance departunents. '. Administrative and Institutional Ftmmework The State Environmental Protection Committee is the highest level of authoritv on environmental policy and includes the State Council and heads of all relevant ministries and agencies- The national Environmental Protection Agency (NEPA) functions as the secretariat of SEPC and is responsible for all aspects of environmental policy although shares authority with other agencies for certain namal resources.. NEPA sets overall policies and rcgulations govening the provincial and municipal environmental protection bureaux (EPBs) and implementation of environmental policv is though the municipal and provincial EPBs. who are responsible for the maintenance of environmental quality. Specific responsibilitv for water resources in Yunnan lies with the Ynuman Water Conservancy Bueau, and with Kumning Water Conservancv Bureau for the resoures of Lake Dianchi Basin. Maintnance of water qualitv is the responsibility of the Yunnan EPB and that in Lake Dianchi Basin of the Kmunming and other municipal EPBs. These bureaux monitor environental quality, set envinmental and discharge standards. assess and levv pollution charges and prosecute serious polluters. 3. Project Description The proposed YEP compnses a total of 30 components. of which The World Bank is proposing to fund 21 as shown in Table I. DRAFT page 3 of 25 09 Fehruy 1996  ExecutvSwmwy Table 1. List of Projects Under YEP. PROJECT FUNDING AGENCY | KUNMING MUNICIPALITY Sewage Treatment Works and Sewerage Networks GoPRC plus * STW No. I exising expanstontupgrading * World Bank * STW No '2 under constructioni * Swedish Goverrnent * STW No 3 under construction i * Australian Govemment * STW No 4i i under construction i * GoPRC o STW No 4h (north) * World Bank * STW No 5, i cast) * World Bank Water Treatment Works and Network GoPRC plus * WTW No I - extension * World Bank * Beiiiaochane VVTW * World Bank Solid Waste Collection. Treatment and Disposal GoPRC plus * Baishuitane ecast) * World Bank * Hongshuitanc !Cest) * World Bank * Retro-Zining seven existing sites * World Bank * Collection and Transfer Stations * World Bank Lake Dianchi Basin Management GoPRC plus * Kunming STWs (scc abovc) * World Bank * Small Towns Sewerage * World Bank o Chenggong * World Bank o Jinning * World Bank * Rural Simitation * World Bank * Clean farmine * GoPRC * Caohai Dredging * GoPRC * Waihai Dvkes * GoPRC * Forestiy * GoPRC * Tanglangchuan River Training * GoPRC * Xiyuan Tunnel Phase 11 * GoPRC Industrial Pollution Control (Kunming only) * GoPRC + World Bank Environmental Monitoring (all cities) * GoPRC + World Bank Institutional Development and Training (al cikis) * GoPRC + World Bank QUJING CITY GoPRC plus * Sewerage and sewage treatment * World Bank * Solid waste collection. treatment and disposal * World Bank * Water treatment and networks * World Bank GEJIU CrIY GoPRC plus * Sewerage and sewage treatent and flood draige * World Bank DRAFT poc 4 of 2 09 Fbrary 196  Excsuie Smaumy 4. Basdine Data 4.1 General Yunnan is among the poorest provinces in the PRC with a per capita income of V3253 (1993). approxmately 496% ol the national average. Relative to the PRC as a whole, the economy of Yunnan is dominated by pnmarv production. principally agricultune, with manufacturing accounting for a relatively smaller proponion ot output. Kunming is a substantial industrial centr dominating the provincal economy. and has a per capita GDP of Y 10.200. Tlere is evidence of a shift towards tertiary sector activities in recent sears. An importnt teature ot industrv in both Yunnan and Kunning is the dominance of State Owned Enterpises (SOEs). pnncipaliv at Provincial and Municipal level. These account for about 75% of gross output compared dith a corresponding figure of 43% for the PRC as a whole. This is an important factor in environmental terms. because many are loss making. in some cases. such as fertiliser production. as a consequence of Central Government controls on output prices. As a result many appear to be unable to fund pollution control measues. Qujing is the second largest citv in Yunnan. with a population of 220.000. and is located some 156Cm to the north east of Kunming. Industrv has expanded rapidly in recent years and Qujing is one of dte six cities in Yunnan designated for high short tenr economic and population growth (the populatio is expected to more than double by 2010. Industrial activity is based on cigarette production. non-fenus metallurgv, chemicals and automobile manufacture Qujing is well located on the road and rail networks for ready access both to Kunming and to other provinces. Gejin is located to the south of Kunming in a mounaino ara in the southemmost part of Yun_ T'he city has grown largely around the development of the tin mining and processing industies Tih population of Gejiu city is currentlv 133.000. with a further 80.000 in four satellite towns which house most of the major industnes. 4.2 Cimate Yunnan has a northern sub-tropical monsoon climate, with extremes of tempemture modeated by altiude and latitude. Precipitation is plentifil (averag I 1OOmn/yr) and the province as a whole is relatively water rich. with per capita run-off approaching 21 times the National average. However, regional differences in the balance between rainfall and evaporation and substantial temporal variability in rainfall result in areas with verv limited water resouces. Lake Dianchi Basin. Qujing and Gejiu are such amas Table 2. Mean Annual Cimatic Conditions in the Three Project Cities City Temperature Rainfall (m) wet season %l Evaporation Humidity Wind speed ( C) (mm) (%/e) (fIlsec) Kunming 14.7 1.007 [May-Oct. 85%] 2.120 73 2.2 Qujing 14.5 1.045-[ nodata 1 1.158 71 3.1 Gejiu 15.9 1.100[May- 80%] 1,228 78 3.0 4.3 Water Resources 4.3.1 Dianchi Basin The water resouces of Lake Dianchi Basin are severely limited with per capita run-off only 3% of the World and 5% of National mean levels. Renewable water resources are currently averagc 31 1m3 per DRAFT page 5of 25 09 Fcbray 1996  Execwati Swuwy capita. but as a result of population growth this will fall in 2020 to 200m3 onaverage and as low as 90m' in a dmuet vear. The latter would barely be sufficient to support domestic water demand alone. At present water demands (agricultural. industrial and domestic) in Lake Dianchi Basin exceed supply by between 177 million m/IT and 578 million m3/yr in average and dry (20 %ile) years respectively. This suppiv imbalance is corrected by recvcling of water. mainly the dischages of unmtreated wastwater from Kunming to Lake Dianchi. Wide tenporal -anations in annual rainfall dictate that water supply depcnds heavily upon reservoir storage. The pnncipal suppiv source for Kunming is the Songhuaba Reservoir. which has the dual roles of water supply and tlood protection. The mean annual run off and total storage volume of Songhuaba Reservoir are 1'4 million m; and 229 million im" respectively. However, because of flood control requirements (I In 100 year tlood). the effective storage available for water supply is only 110 million In'. which gives a mean annual vield of 128 million m' (350 000 m3/d) with an assurance rate of 95%Y. In practice the reservoir is operated at a level I Sm below the operating rule curve because famners have not received compensation pavments for the loss of land involved. The reservoir currently supplies water for agricultunal as well as municipal use. It is proposed in fiure to substitute Lake Dianchi water for use in agriculture to conserve the better qualitv Songhuaba watr for potable supply. The majoritv of the water demand in Kunming is met by abstractions from Lake Dianchi. amounting to 480.000 m3id. Lake Dianchi has an average depth of approximately 4.5m and the overall ste volume is 1.250 million m'. iowever, the eff ctive storage is substantially less than this figur because of the flood control requirenents. The lake receives run off from approximately 20 river Tho passig though Kunming. include overspil from Songhuaba Reservoir via the Panlongjiang, awe reduced in the drv season to little more than semi-stagnant. open sewers. A majority of rivers entr the lake from agricultural areas to the east and south of the bke These when they flow (usually less than 50 days per year) are relatively clean Flood protection is achieved by the discharge of water from the lake via the sole outlet at Haikou, at the south west of the lake. to the Tanglangchuan river. The bydraulic capacity of the T is limited, and a further flood alleviation measure the Xiyun Tunnel at the north east ofthe lake, has been constuted to increase the rate of discharg of flood water. In spite of these and other measures aimed at increasing the effective storage in Lake Dianchi. the increased water demands are such that they can only be met bv ever increasing recycling of Kunmning municipal wastewater or by the costly alteative of importing water from another catchment. 4.3.2 Qujing The principal watercourse in Qujing Municipality is the Nanpanjiang which provides the majority ofthe water supply to Qujing via three reservoirs on its tributaries. 'Me remainder is obtained fiom groundwater. These resources are insufficient to meet future demands. for which it will be necessary to transport water from Du Mu Reservoir. located some 45km east ofthe city. 4.33 Gejiu Gejiu derives water supplies from a cornbination of three reservoirs to the south of the city and fioin groundwater and springs. Most of the city's industrv is supplied from Gejiu Lake. an artificial lake constructed in 1955 with a volume of 5 million m' largey for flood protection and amenity use. The lake has for manv years received discharges of urban was_twatcr. soil eroded from mining areas above the city and tailings from tin processing. As a result thee has been a substantial reduction in its effective volume and self purification capacity. Betwecn 1961 and 1986 sediments were dredged firom dhe lake and maintained a reasonable storage capacity. This is no longer happeing. DRAFT pac 6 of 25 09 February 1996  During the drv season wastewater discharges to the lake cosirtute about two-hirds of the available water supplv for industrv. Water absaion by industry in the dry season exceeds 4 mi1Lion mn, and therefore this intlow of wastewater. or a suitable replacement. is cruial to the water balance ofthe lakec 4.4 Water Qualitv 4.4.1 Chinese Water Qualit Classification bhe PRC %wter qualirv classification is based on five levels of beneficial water use. as shown in Table 3. Table 3. Peopte's Republic of China; Water Quality Classification System (GB 3838-8). Classification Description or Water Use Function National Nature Protection Area. II Domestic Potable Water Source - Grade I protection area, precious fish and fish culture zone. 111 Domestic Potable Water Source - Grade 11 protection area, genera fish and bathing areas. IV Industrial Water Use and Recreation. V Agricultural and general amenity use. 4.42 Dianchi Basin The principal ecographical features of the Lake Dianchi Basin are shown in Figure 2. Songhnaba Reservoir: %ater qualitv in is currendy classified as Class [L but the limited data available indicate increasing nutment concentrations in the reservoir and hence progessive eutrophicad Although the reservoir catchinent was designaLed a Water Protction Zone in 1981 the contituing lack of practical control has resulted in increasing farming and nual township expansion in the proteci Zone. Lake Dianchi: is divided into two parts. the Caohai (inner lae. 2.5% of Dianchi by area less dtan 1% by volume) and the much larger Waihai (outer lake 97.5%). The Caohai and the Waihai are now physically separated by a recentlv completed banage fitted with control gates Municipal and indsrial wastewater from Kunming is discharged, mainly untreated, into both the Caohai and Walhio Each receives about 50%/o of the effluent with particularly dire consequences for the Caohai. For flood control purposes water from the Caohai can be discharge though dther the control gates to the Waihai or via the Xiyuan Tunnel to the Tanglangchuan catclunent Kunming STWs: There is currently only one operational wa_twr treanent works in Kunmin& txating a flow of 55.000m'/d. which discharges ultnately to the Caohai. A firther 3 factories are under constuction. with a total tratment capacity of 360,000 m'id of which 210,000 m'3d will be dichaged to the Waihai. In all cases the STWs-will treat a combination of effluent. stonmwater and river water until the construction of separate drainage systems is completed under YEP. Treatment processes at al wastewater treatment works incorporate paTial removal of both nitogen and phosphorus. The detrimental impacts of wastewater dilution by storwatmer on P and N removal efficiency should be noted. As noted above the Caohai is particularly polluted. with water quality failing to comply even with Class V standards. In particular the concentrions of nitogen and phosphorus are high, typically up to 7.5 and 0.9mg/I respecively. Contamination with toxic matter is aLw of concrnL Water quality in the Waihai has also deteriorated in rcent years. and nirogen and phosphorus concentations are again high, averaging 1.5 and 0,14 mg/l respectively in 1995. DRA-FT page 7 of 25 09 Febnraay 1996  Exeutve Suunsr Water is abstracted from the Waihai for trtment at two water treatenet works. However. poor water quality in terns of aleal growths resulting firom the high nutrient concenwrations are causing severe treatment difficulties. In panticular. one water intake close to the buundary with the Caohai has been closed. Phosphorus: has been 3dentified as the growth-limiting nutrient and therefore the principal focus of load reduction in wastc%atcr trcatment. A summarv of the potential phosphorus loads to both the Caohat and Waihai are shown in rabic 4. Table 4. Summary of Pbosphorus Loads to Lake Dianchi (1995). | Phosphorus Loads (t/yr) Source Caohai Waibai Total Kunming wastewater 126 210 336 Kunyang Fertiliser Factory 57 57 Kunmine Fertiliser Factorv 36 36 Other industry 24 11 35 Chenggong 6 6 Jinning 9 9 Total point source 15 329 479 Run-off 57 108 165 Atmosphere 2 55 57 Rural population 15 65 so Total mon-point source 74 228 302 Iit-HI~ TOTAL 2457712- O:t It may be seen from Table 4 that the loads are in both cases dominated by point source discharges of urban and industnal %astewater. Discharges to the Caohai have in the past entered the Wkiha, and therefore the load to the Waihai would have been greater than that indicated in Table 4. Hoever, the construction of the barrage and the Xiyuan tunnel has now allowed the diversion in dry weather of water from the Caohai. pnncipaliv urban wastewater. away from the Waihai to the downstram Tanglng- chuan river. In addition to the high nutrient levels in both the Caohai and the Wathai there is concern also at discharges of oreanic matter (BOC/COD) from municipal wastewater and toxins from industry. High BOD/COD can result in deoxygenated water and the rec-se of nutrients from sediments causing further algal growth: and toxins mav reduce the lakes self-cleansing capacity and contaminate aquatic food chains. The Tanglanochuan River: receives water discharged from the Waihai at Haikou throughout the year, either for flood control purposes or to maintain a base flow in the dry season. There is considerable exploitation of the Taniglangchuan for irrigaed agriculture and by industry. Waste quality in the Tanglangchuan is poor as a result of discharges of untreated industrial wastewater. Dianchi water is wastefuliv dischareed from Lake Dianchi simply to provide dilution of this illegal pollution to maintain even the present level of water quality. DRFT page 8 of 25 09 Febdr 1996  KEY FEATURES OF LAKE DIANCHI FIGURE 2 I:.~~~~~~~~~~~~~~~~~~~~~~N Legend ~ ~ ~ ~ ~ ~ ~ ~ ~ BSV ,_-C:at 0-- | ffi K 13 .W- I Wi, .t er Bodes KuMn , E- _-_Hn_.__H, Ftew FactoryH-HH--_-H- KtI-n ,:C-.:. HH--H__._ W , , _ ~~~.. _.,_.............. .._4. y ~ ~~~~~~~~~~~~~~ _--2H-3__4_ H-K  Executive Swumway 4.4.3 Qujing Water quality in the service reservoirs and the Nanpanjiang tributaries above Qujing are generally of good qualitv. typically meeting Class I standard. The Nanpanjiang below the Huashan Reservoir (some 40 km upstream ot' ujine) is also Class I but industries (fertiliser factories and a paper mill) reduce the qualitv to Class V principallv in terms of high COD and ammonia concentrations. Addition of furdthr effluents from Qujing does not influence this classification. At the Xianghuiba Reservoir. 45km downstream of Ouiing the Nanpanjiane has improved to Class III. The stated objective is to improve water qualitv ol the >.anpanilane in the vicinity of Qujing to Class IV by 2000 and to Class III by 2010. 4.4.4 Gejiu Gejiu Lake has been senouslv polluted bv long-term discharges of municipal and industrial wastewaer, with water qualirm tadling to meet even Class V standards. Even during cooler months quiescent areas appear black and scptic. Sediments are highly contaminated with metals (arsenic, lead and cadmium) discharged from tin mining and related activities. although there have been dramatic reductions in taxic metal discharees over the past 20 vears. The objective for Lake Gejiu is to improve water quality to Class IV. suft-icicnt to support industnal water use and recreation. 4.5 The Causes of Environmental Degradation in Yunnan The principal underl% ing cause of the deteriorating water quality in the Dianchi Basin and the other project cities is the % inual absence of effective implementation of existing discharge regulations which allows uncontrolled dischamte of wastewater (without treaument), from urban and industrial sources The primary instrument in the PRC for control of industrial pollution is the effluent fee sysm, but the fes charged are considcrably below levels necessary to have the required incentive effect in terms of wastewater treatment. Moreover. there is only partial collection of fees. particularly in Kunming, where the collection rate is onlv oft the order of 400/%. Polluters are not paying for the use of envirmnental services and these services are suffering accordingly. 4-51 Lake Dianchi: Ecological Degradstion In the early 1950s. Lak-e Dianchi was classified as an oligo- to mesotrophic clear water lake. Sediments were largelv covered by macrophytes. The fish communitv consisted mainly of indigenous species and zooplankton were sutficiecn to suppress algal growth. The sloping shores resulted in different zones of littoral macrophvte communities that contributed fish breeding sites and to lake cleansing and a large biodiversitv. Increased human activitv in the 1960s and 1970s led to domestic and industrial pollution. land abuse, erosion processes. land reclamation of critical shoreline areas, over fishing and introduction of exotic edible fish species. As a resulL the lake ecosysten changed into a turbid waterbody. the fish community became dominated by carps. and the algae by blue-green types Avemge chlorophyil-a values increased to 120-150 g/I for the Caohai and 20-50 gto in the Waihai. The area of the Caohai has been reduced from 12 to 8 kImn lor urban land reclamation. faohai sediments have been heavily polluted, especialy with industrial heavv metals. Macmphyte coverace has reduced drastically: today there are almost no submnersed macrophytes at all. Only in a few w estem parts of the Waihai is macrophyte coverage adequate for fish to spawn and grow. The inner Caohai is often choked bv water hyacinth, closing off large parts of the water column from light and oxvyen. Clearini of the hvacinth imposes financial burdens on the City and lake users, and reduces the lakles tounsm potential. Water qualitv degradation has resulted from a combination of pbysical. chemical and biological interventions by man over the past few decades. The reasons, causes and consequences of these interventions are summarised in Table 5 and their interactions illustrated in Figure 3. DRAFT . page 10 of 25 09 Febrai 1996  ExeuteSwamwy Table 5. Causes and Consequences of Lake Dianchi Ecological Degradation. Chemical Causes Problem Source/Cause Co_euences Phosphorus loadin! inilow ot untreated domestic cutrophication and excessive algal growth and industrial effluents affecting WTWs: loss of macrophytes and other aquatic organisns COD & BOD. intlow ot untreated domestic oxygen stress in the lake leading to extinction of .nd industrial effluents I fauna and flora: and threat of enhanced intemal nutrient cycling if conditions become anoxic .. _.____.. . ......... .. __,.... Toxins industrial eftluents. mainly J limination/mduction of aquatic species. hcavv metals reduction in lake self-cleansing abilitv; health hazard to consumers and livestock Phvsical Causes Problem Purpose Cosquences Dvkc construction increase Dianchi water storage lake littoral zone destroyed fish spawntng sites capacit,. flood control lost, lake self cleansing capacitv reduced. 3 macrophyteseliminated Land reclamnanon increase urban and agricultural as above. plus loss of floodplain area where silt land area with P once increased soil fertility: the P + silt now flow diruely to the lake causing 3 eutrophication River flow control increase availabilitv of fish spawning sites lost, lake self cleansing imeation water capacity reduced, lake water retention time increased leading to high biological productvity _ physical cutrophication Deforestation Steel production and to increased soil erosion: infilling the lake and increas agricultural land tAnxsporting phosphous to the lake Biological Causes Problem Purposetreason Consequences introduction of exotic improve lake fishery uncertain: possible competition with native species of fish . spcies over-fishing increase demand for fish and reduces fish populations and possible species emplovment extinctions loss of fish species due to dyke construction, river I reduced grazing pressure on algae causing algal control and over fishing increase introduction or water ornamental plant rivers m Kumning ar now covered by the weed. hyacinth anoxia below the weed mat allows nutrient . regeneration from sedimnts: this may however be beneficial as the "rivers' now act as anaerobic - . oxidation ponds and lessen the load on the lake. Conversly. the presence of the weed in the Caohai is probably detrimental in the long term. DRAFT page)11 of 25 09 Februy 1996  &Easw&miy An important conclusion io be dracwn from an analysis of the causes and consequences of water qualitv deteriorat(on in Lake Dianchi is that treaong the sources of pollution. will. alone. be insufficient to return the lake to uis once pristine condition. But such interventions are likely to relard or reverse the do)wnwwrd trend as is shown in Section 6.1. To understand the reasons for the deterioration of lake water quality in Lake Dianchi it is necessary to appreciate the sieniticance and maznitude of the human interventions which have occurred in the basin during Ihe laIt two or three decades and the environmental impacts they have had. These are d-scussed in the section 4 6 and itemised below: * the expansitn *ot the urban population and industrv in the basin. * the reclamation ot lakeside land and floodplain areas for urban and agricultural use. * construction ol the lake perimeter dykes. * the ever increasing human control and intervention in the natural water cycle. * deforestation lor fuelling steel production and problems of forestry management control and land allocation. 4.6 Dianchi Basin Aquatic and Terrestrial Ecology Fish species diversitv in Lake Dianchi declined between the late 1950s and 1985 from 53 to 27 as a result of protectt e d% ke construction and land reclamation. These activities destroyed the shallow water areas where t'ish uould normally breed and have nursery grounds. Of the surviving 27 species only 6 are now of commerctal importance, but the total annual yield has declined much less dramatically dtan species numbers. Like Dianchi remains the largest fish producer in Yunnan. The dvke construction and land reclamation activities have contributed to the degradation of Lake Dianchi in respect of midespread destruction of its littoral zone and of aquatic macrophytes. In addition deforestation contributed to the phosphorus loading to the lake as a result of soil erosion. which has also reduced the lake volume. The problems of Lake Dianchi dtrefom derive both fron the increase in the loads of phosphorus to the lake and from the reduction in its ability to assimilate phosphorus as a result of the disruption of its natural ecology. Approximatelv 22% of Lake Dianchi Basin is occupied by cropped land and about 37P/ by forests. The forsts consist pnncipallv of sub-tropical evergreen broad leafed species but also include areas of deciduous broad leaved forest, temperate pine forest, shrub grassland. bamboo forest and grassland. Eucalyptus globudes has been introduced as a plantation species and occurs throughout the basin There has been considerable degradation of the forest as a result of use of wood as a fuel and of problerns of forcst management control and land allocation. Nevertheless the proportion of the basin area accounted for by torest cover remains the same as that in 1975. 4.7 Solid Waste Management Overall responsibilitv for the collection and disposal of municipal and commercial wastes and saet sweepings rests with the CitV Appearance Committe (CACs) and the Munict;i: Environmenta Sanitation Sections (MESSs). Collecton of solid wastes is gencraliv effective. although in some areas unsightly large quantifies of waste line roadsides and river banks. where it is left to decornpose for subsequent use as compost. Disposal of solid wastes has traditionally been to land. principally to numerous large and small open dumps. and not using acceptable standards of sanitarv laiidfill. Two major sites serving Kunming have received more than 2 million tonnes over the past 10 yea. T'he open dumps are unhygienic and unsatisfactorv and are not registered or monitored. Since the dumps are neither lined nor covered. there are potenial problems of leachate and wind bknln pollution. Ther is also particular concern over the uncontrolled disposal of toxic and hazardous wastes from industy and hospitals. DRAFT pge 12 of 25 09 Februwy 1996  DIANCHI LAKE ECOLOGICAL DEGATION E 3 I LAKE BASIN DEVELOPMENTS BJTROPHGAONL I__& TOXINS DISRUPTION OF NAIURAL ECOLOGY 1 __________ I UU_ HRSHHB UWE SM~~~~~~~~~~. DSaeWTROqalt EROSIO DESWADAON PHOSPHANDCSTOFWTE dgadtEn )BEM5 | _^09 , O~OMPX SITION l , I*INCREASED DFFICLTY ik io w == , ~~~~~AND COST OF'WATE 9 egm k~~~~~~~~AMN  ExecisiveSwNwwf Quantities of' municipal solid waste on a per capia basis are declining as a rcsult of the change fiom coal to gas as a fuel. As a result the organic content is higher. There are informal recycling activities. but the proportion of waste recvcled is high but quantitatively unknown. The decline in the use of nightsoil bv farmers in favour of chemical fertilisers has resulted in the disposal of increasing quantities of nightsoil with the solid -6aste stream. Dewatered sludges fiom the existing Kumnning STI and all planned works %ill be disposed of to the sanitary landfill sites proposed under the YEP. S. Consideration of Alternatives The Yunnan lFriironmental Project is an umbrella programme comprising 19 sub-projects which together will beemn to tackle the uorsening problems of environmental degradation being faced in Yunnan. This secetion discusses the consideration of alternatives in the development of the overall YEP and in the lecction ot individual sub-projects for inclusion in the World Bank Funding. 5.1 Project Selection The initial ranking and selection process for inclusion under World Bank funding was based on the six followine critena: I. Objective: that the project will achieve the strategic objectives of the YEP and, where relevant, those of the Dianchi Basin Action Plan. or the equivalent plans for Qujing and Gejiu. 2. Lake: achieves the objective of cleaning up Lake Dianchi. or the Nanpanjiang. or Lake Gejiu, 3. ImWlementarinzn case with which the project can be implemented by the agency responsible. 4. Value: that the projcct represents good value for money, and is the least cost alternative, 5. Rea,y- readiness of the project for design, 6. Bankable: the project is acceptable to the World Bank and other Funding Agencies: this criterion includes the ability ot the implementing agency to repay the loan. Those projects with the highest scores were included for World Bank fimding up to the point where the total cost of the selected projects exceeded the funding available. 5.2 Project Design Alternatves The majoritv of decisions where alternative design options were available concerned proposed hard- ware interventions. i.e. those where construction is involved. For construction interventions, the following options were considered: * Appropriate rechnoloRy: appropriate for the task in hand. also appropriate for China in terms of local availability. sophistication. operations and maintenance support; * Choice of capacifr: treatment capacity at WTWs and STWs particularly-, * Phasing of sab-projects: choice of order in which sub-projects will be implemented; * Phksing of expansion within sub-projec: WTWs and STWs and their networks can be proessively expanded as demand for their services increases with population and economic growth: * Site selection: vhere alternative sites are available. and availability is often scarce. the choicc is for the least cost and m inimal environmental and social impacts. * M-minimsarioj oJ environmental inpacts including LAR issues: usually resulting from site selection. - Proces options within a workss: choice of degree of flexibility in factory operations, the ability to by-pass process when operating conditions permit, to reduce costs. or varying chemicals used, * Mtgation opnons: assessing and selecting the best means of mitigating adverse impacts. DRAFT pge 14 of 2S 09 Febrary 1996  Executve Siway In most cases the approaches adopted for the various project components represent the only realistic option in terms of resource availabilitv or achievement of the required environmetal objective. Where multiple options were available the least cost solution achieving the required objective was selected. In terns oi the rehabilitation of Lakc Dianchi with respect to its trophic state it would not be possible within a realistic time-tramc to enhance sufficiently the ability of the lake to assimilate phosphorus. The only realistic approach to improving or maintaining present water quality in the immediate temm is therefore to reduce the phosphorus loads discharged to the lake and aim to maintain the satw qua. Achievine this aim inr the Waihai is the prime concern. Tlhe proposed Kunmine % astewater treatment works processes are based on biological tratment incorporating ntmroren and phosphorus removal in addition to achieving a high degree of removal of organic matter fie alternative of a totallv chemically based treatment svstem would not readily be able to achieve all the discharge standards. particularly in respect of removal of nitrogen and organic matter. Further removal *ot nutnents from the Waihai by diversion of treated wastewater to the Caobai and thence via the Xi%.uan tunnel was rejected in view of water resource limitations on the Waihai. Chemical treatment was, however. preferred to a high rate biological treatment system as an intermediate solution in both Qujing and Gejiu. The chemical treatment system adopted offers both cost and operational advantages and can readily be incorporated into the biological treatment system proposed for the longer termn Sanitarv landfill %%as preferred to other waste disposal options in all cases. Incineration would not be appropriate in .iew of the low heat value of the wastes. resulting from either a high inert ash content. arising from domcstic usc of coal as a tuel, or from a high moisture content Composting was rejected in view of concerns over adequacy and stability of product market outlets. Moreover, landfill would be required in any event lor reject materials from other options. 6. Environmental Benefits The balace of the YEP including the Worl Bazkfwded componnts is subzzt idy positve, and iue are considerable environmental benefits for Lake DiAncir Basin andfor the cities of Qfjmg and Gejit TMere will be some adverse impacts during project implementation but these are minor comparcd to the potentially disastrous impacts of not implementing the YEP. The 'Do Nothing Scenario' is not a viable option. Principal project benefits are discussed in detail below. Adverse impacts and iTwitigation measures are discussed in Section 7. 6.1 Lake Dianchi Basin Two project intervention categories. STWs (urban and rual), and IPC will have direct benefits for water quality in Lake Dianchi. Other components. WTWs and Solid Waste Managemnct, for example, will not directly improve lake water quality but will have significant social and environmentl benefits in other ways. The primary focus of the wastewater treatment works and industrial pollution control projects is the reduction of the point source loads of nutrients. principally phosphorus. to Lake Dianchi. particularly the Waihai. An assessment of the anticipated overall P removal benefits of from implementation of the Dianchi Basin projects is summarised in Table 6. The loads referred to in the table relate to conditions obtaining in the year 2010. the time horizon of the designs for all project components. DRAFT pae 15 of 25 09 Februry 1.996  Execaitwe Samuawy Table 6. Lake Dianchi: Estimated Pbospborus LAods in Toones per Year. SOURCE PHOSPHORUS LOADS IN TONNESVYE-AR Year 1995 2010 .Do Nothing" With YEP YEP Scenario Projects (Img/l P) (0.5mg/I P) WAIHA Load (Y) La ('/) Kunming Was:eiuuer STW No 2 75 176. 23 93 65 47. 13 STW No 4a 71 10W1- 13 56 32 21 6 S1W No 4b 67. 9 67 27 14. 4 STW No 5 46. 6 46 18 9. 2 Unconnected 64 36. 5 36 36 36 10 Total Kunmnp %watewater to Waihai 210 426 55 298 173 127 34 Kumvang Phospnwrus Ferilser Factorv 57 57 7 57 1 1 0 Kwuming Chemical FLrrrhtser Factorv 36 36 5 36 4 4 1 Other Indsty I I I I I I 1z 3 Che ong 6 9 1 9 2 1- 0 Jwung9 9 13. 2 13 3 2 1 Total point source load to Waihbi 329 552 71 424 199 1461 39 Relative to 1995 i% o 100 168. 129 60 44. Run-off 10 103- 14 108 10 108. 29 Atmosphere 55 55 7 55 55 55. 15 Rural Population 65 65. S 65 65 65: 17 Total non-point source bad to Wain:ai 22 8 2Z8 29 223 223 22111 61 Totel phosphorus loud to Waibhi 7S -100 652 427 3741 13 Relativeto 1995QO0I 100 140- 117 77 67. Available phosphorus load in Waihai 365 565 72 450 24J 200- 53 ReE;uiveto 1995 0.l 100 155 123 68 55 Km.g wastewvater STWlNo 1. 12 62, 17 62 28 14