China - Jiangxi Integrated Agricultural Modernization Project : environmental impact assessment (Vol. 2 of 5) : Environmental impact assessment report : annexes

E519 Project With Loans From the World Bank Volume 2 People's Republic of China World Bank Financed Jiangxi Integrated Agricultural Modernization Project (JIAMP) Environmental Impact Assessment Report (Final Draft) Annexes Jiangxi Provincial Environmental Protection Research Institute State Environmental Assessment Certificate Grade A No. 2303 Entrusted by Jiangxi Provincial Agricultural Office for Foreip Capital Utilization November, 2001 FILE COPY  Project With Loans From the World Bank People's Republic of China World Bank Financed Jiangxi Integrated Agricultural Modernization Project (JIAMP) Environmental Impact Assessment Report (Final Draft) Annexes Jiangxi Provincial Environmental Protection Research Institute State Environmental Assessment Certificate Grade A No. 2303 Entrusted by Jiangxi Provincial Agricultural Office for Foreign Capital Utilization November, 2001  Table of Contents Annex A: ............................................................ A-1 TERMS OF REFERENCE (TOR) FOR AN ENVIRONMENTAL ASSESSMENT OF THE JIANGXI INTEGRATED AGRICULTURAL MODERNIZATION PROJECT Annex B: ............................................................ B-1 Table B-i. List of EA Team Members ......... ....... .......................................... B-I Table B-2. Present Status of Farm Inigation and Drainage .............. ......................... B-2 Table B-3 Proposed Projects Under Irrigation & Drainage Component ......................... B-I 8 Table B-4 Proposed Projects Under Farm Production Improvement Component .............. B-46 Table B-5 Yearly Implementation Plan of Irrigation and Drainage Component..... ............ B-49 Annex C: ............................................................ C-1 Minutes of Consultation with Governmental Organizations and NGOs. Annex D: ............................................................ D-1 Project Photographs  Annex A: TERMS OF REFERENCE (TOR) FOR AN ENVIRONMENTAL ASSESSMENT OF THE JIANGXI INTEGRATED AGRICULTURAL MODERNIZATION PROJECT lItroductiont. 1. The Environmental Assessment (EA) of the Jiangxi Integrated Agricultural Modernization Project (JIAMP), as proposed in these TORs, would be prepared to meet the requirements of both the World Bank's project appraisal process and the Government of China's and Government of Jiangxi's environmental assessment process. The EA will assess the environmental impact and plan environmental mitigation and monitoring for the proposed JIAMP. The project aims at improving the participating farmers' livelihood by providing the enviromnent necessary for efficient integration of production processing and marketing of agricultural commodities, in which Jiangxi has a comparative advantage. The EA will be carried out by an independent institute of highest standards (capable of EA for Category A projects). Background Information. 2. The proposed JIAMP's features include: (a) a geographic concentration of activities to priority irrigation areas in the project counties; (b) integration of crop and livestock activities at the farm household level with the irrigation, drainage and land improvement investments in order to maximize the return to these infrastructure investments. This would allow for expansion of production possibilities through diversification and productivity increases; and (c) improving farmers' responsiveness to market signals and add value rather than increasing production while ensuring that part of the new value added accrues to farmers. The activities proposed under Farm Productivity Improvement Component and to a lesser extent under Market Development Component are closely linked to and will build on irrigation and drainage investments in their geographic context. These integrating characteristics require, above all, the participation of people and organizations at several levels of the marketing chain. 3. The following three components are proposed under the project: (1) Irrigation and Drainage Conzponent. The specific objectives of the Irrigation and Drainage component are to: (a) ensure sustainable use of land and water resources for irrigated agriculture (including improving irrigation water use efficiency); (b) increase agricultural productivity; and (c) demonstrate a model of tertiary irrigation development for agriculture modernization. The component would include: (i) rehabilitation of existing irrigation works including reservoirs, diversion weirs; main and secondary canals and drains, canal and drainage structures; and A-1  pumping stations (works and goods); (ii) construction of tertiary (on-farm) imrgation and drainage systems (works and goods); and (iii) construction of access and farm roads (works). On the institutional development side, the component would support the establishment of Self Financed Irrigation and Drainage Development (SIDD) systems for all irrigation command areas upgraded under the project to ensure more efficient and sustainable use of land and water resources for irrigated agriculture (technical assistance). Each SIDD would comprise a Water Supply Organizations (WSOs) and Water User Associations (WUAs). A WSOs are expected to assume the responsibilities of current state run Water Management Stations (smaller schemes) or the County Hydraulic Bureaus. They would become responsible for constructing, operating and managing reservoirs, and main and secondary canals. They would continue to provide WUAs the required management and technical services to assure reliable and adequate water delivery along all levels of irrigation system. It is expected that in the long run, the WSOs become financially self-sustainable entities by selling water to WUAs at a price which would cover capital and operating costs. WlUAs would be established by farmers, along the hydrological boundaries. WlUAs would purchase water from WSOs and would increasingly assume ownership and responsibility for the design, construction, operation and maintenance of delivery systems at their level through water charges and labor contributions. (2) Farm Production Improvement Component. The specific objective of the Farm Production Improvement component is to achieve sustainable increase in farm productivity through: (a) soil improvement; (b) better availability of seeds for improved crop varieties; (c) improved research services and technical extension; (iv) development and extension of improved, appropriate technology for farm production; and (d) trained technicians and farmers able to apply new technologies of farm production, and adjust farm production in response to market changes and opportunities. More specifically, the component would include: (i) soil improvement (improved fertility of low and medium yield fields; terracing), (works and goods); (ii) seed improvement (seed variety selection, breeding, drying, testing, storage, packaging, distribution) (works, goods, and technical assistance); (iii) breed improvement (improved breeds of livestock and fish developed for farm households; provision/rehabilitation of relevant infrastructure; provision of on farm facilities for high value livestock/ fisheries multiplication) (works, goods and technical assistance); (iv) applied, on-farm research (project related crop, water and livestock management issues, and crop cultivation techniques) (goods and technical assistance); and (v) training of farmers and technicians and extension (in cultivation technology, crop/livestocklwater/ environmental management, planting techniques, pest control, etc.) (technical assistance). (3) Market Systems Development Component. The objective of the component is to increase farmers' access to markets and to ensure efficient delivery of high quality products from producers to consumers at the lowest possible cost. The component A-2  would include: (a) establishment of a Center for Agriculturai Marketing Studies (CAMS) by combining and coordinating the activities of several (existing) provincial bureaus, agencies, and institutes in order to establish capacity for prdvincial-level strategic market monitoring and market infonnation collection, analysis and dissemination (equipment, technical assistance and training). The CAMS would be run as a private sector association; (b) promotion of informal household and village based groups to overcome the limitations imposed by small product volumes, the limited ability to invest and service debt, and the imbalances in the marketing chain; (c) development of quality standards for major agricultural products (technical assistance); (d) integration of marketing into extension, advisory services and research (technical assistance and training); and (e) support to wholesale markets for upgrading and/or construction, establishment of computerized information systems, etc. (goods, works and technical assistance). 4. It is required that the EA preparation team liaise closely with those teams appointed for the various studies of the three project components. The TORs for these -studies will be provided to the EA team. It is imperative that the EA team hold regular planning meetings with the other project teams. Of particular importance is close coordination with the Social Assessment Team. 5. The implementing agencies for the proposed project are proposed to be coordinated and supervised by the Project Management Organization (PMO) under the Provincial Planning Commission in Jiangxi. Many institutions are expected to participate in and contribute to the project at township, county, prefecture and central level. Specifically, it is of great importance that line departments such as those under the Ministry of Water Resources and the Ministry of Agriculture as well the extension and advisory services are greatly engaged in the project. Other specific institutions might be responsible for certain components or sub-components of the projects and new institutions might be created under the market system development component. It is anticipated that producer associations, other Non Governmental Organizations, and private sector entities will play a critical role in project implementation and need to be consulted during project preparation and for the EA. 6. The EA can build to some extent on the experience from projects such as the completed Jiangxi Agricultural Development Project and the Second Red Soils Area Development Project, which is still under implementation. Parallel to the EA, an Social Assessment is prepared for JIAMP. As pointed out earlier in this ToR, the EA preparation team has to coordinate with the SA team and feed into the SA by pointing to social implications of environmental impact of the project. An important part of the project which is initiated at preparation stage is a beneficiary participation plan which describes how project beneficiaries will participate in a meaningful way in project implementation. The EA work has to be coordinated with the work on the beneficiary participation plan and needs to provide input into it regarding the environmental aspects of participation. A-3  Objectives. 7. The scope of the environmental assessment would encompass an environmental impact assessment and an environmental mitigation and monitoring plan. The EA would be prepared parallel to the preparation of the project. In no circumstance can the EA be completed before the other project feasibility studies are completed. It is anticipated that a draft EA report would have be completed by June 2001 or another date to be advised by the PMO depending on the overall progress of project preparation. The EA must be based on the preliminary project design and community consultation. 8. The EA would: (i) screen the project to the most appropriate review and approval option; (ii) establish a reliable environmental baseline against which to measure future change; (iii) establish environmental objectives, standards and performance indicators; (iv) promote avoiding or reducing impacts through early consideration of environmental impacts in planning and design; (v) identify and quantify benefits and residual impacts or risks (i.e. those that cannot be avoided or mitigated); (vi) design environmental monitoring and mitigation plan with a schedule, triggers, and cost estimates for action; (vii) consult with and infonn involved communities and convey information to senior decision-makers; and (viii) provide guidance to more detailed planning and implementation. In addition to "'scientific impact analysis, the environmental assessment should focus on planning and design to avoid or minimize environmental impacts through (i) community consultation and development programs; (ii) limiting site disturbance and soil degradation; (iii) minimizing disturbance and contamination of watersheds and watercourses; (iv) promote integrated pest management systems under the project; and (v) well-conceived environmental monitoring. Environmental Assessment Reqitirenments. 9. The following regulations and guidelines will govern the conduct of the assessment: Government Documents Relating to Approval of the Project Proposal * National regulations and/or standards on environmental reviews and impact assessments; and * Provincial or local environmental assessment standards. 10. The common standards for environmental assessment should be national standards. Chinese Government and World Bank Regulations Relating to the Project 11. The EA and the process for its review and approval, shall conform to the laws and regulations of the People's Republic of China; in particular: (i) The Law on Environmental Protection (December 1989): specifically Articles 14 ( preparation of environmental impact statements), 17 (protection of natural A-4  ecosystems ), and 20 (rational application of chemical fertilizers and pesticides); (ii) Regulations on the Management of Environmental Protection in Construction Projects (State Council Decree No. 253 of 1998): specifically Articles 7 (classification of projects), 8 (contents of an EIA report), 9 (the relationship between EIA and feasibility design), and 10 (submission of the EIA to the competent environmental administration for examination and approval); (iii) Circular on Strengthening EIA Management in Construction projects Financed by International Financial Organizations (NEPA. June 21, 1993): specifically Articles I (projects subject to PRC laws, regulations and standards), II (subject to PRC environmental review and approval procedures), III (categorization of development projects), VI (synchronization of the PRC's and the international organization's project design and EIA procedures), VII (public participation), VIII (involuntary resettlement), IX (procedures for submitting EIA reports), XII (preparation of EIA reports by an organization with a Class A certification), and Annexes A, B and C (Annotated formats for EIA Terms of Reference, EIA Reports and EIA Summary Reports); and 12. All components of the project must conform with the safeguard policies of the World Bank. The EA report will, therefore, address the requirements of the following: (i) Operational Policy 4.01. Environmental Assessment: specifically Sections 1-3 (definitions of the environment and environmental assessment), 4-6 (responsibilities for EA on World Bank projects), 8 (environmental screening and project categories), 15 (public consultation), 16-19 (disclosure), and 20 (compliance with environmental prescriptions during implementation); (ii) Operational Policy 4.04. Natural Habitats: specifically Sections 3-8 (project design and implementation to avoid conversion of natural habitats); (iii) Operational Policy 4.09. Pest management: specifically Sections 1-2 (pest management strategies must be considered in EA), 3-4 (pest management activities must be justified within an Integrated Pest Management Program), and 6-7 (criteria for pesticide selection and use); (iv) Operational Policy 4.11. Cultural Property: specifically Sections 1 (definition of cultural property), 2 (policy on preservation and protection of cultural property) and 3 (procedures for protection of cultural property). (v) Operational Directive 4.30. Involuntary Resettlement: specifically Sections 3 (policy objectives for resettlement of people displaced by a project), and 4-22 (resettlement planning). A-5  (vi) Operational Policy 4.37. Safety of Dams: specifically Section 1 (responsibility for safety of dams) and Sections 6-9 (existing dams and dams under construction); (vii) Bank Procedures 17.50. Disclosure of Operational Information: specifically Sections 11-14 (disclosure of environment-related documents). Study Area. 13. The study areas should be the same as the areas selected for Pilot Irrigation Designs, i.e. Hengfeng, Benzhe and Wunin counties. Scope of Work: Task 1. Description of the Proposed Project. General design and extent of irrigation and drainage works and operation and maintenance of irrigation works; general design and extent of farm production improvement component; general design and specific activities under market system development component. Based on this information identify, the key variables of interest on which the project activities may have an impact (i.e. land and water use changes due to irrigation rehabilitation; pesticide and fertilizer use; and animal manure). Task 2. Description of the Environment. Collect, evaluate and present baseline data on the relevant environmental characteristics of the study area based on the key variables identified in Task 1. Only the data relevant to the project and key impact variables should be collected. Existing (secondary) information sources should be given priority over primary data collection. All secondary data sources should be well referenced. It is critical that the EA study team will cooperate closely with other feasibility teams (especially Irrigation and Drainage and Farm Productivity Improvement studies), in order to avoid duplication in the collection of relevant baseline information about project sites. Primary data collection should be undertaken only if there are serious data gaps, which prevent evaluation of significant project impacts. Include information on any changes anticipated before the project commences, including other development activities in the project area. The use of maps (with coordinates), photographs, tables, graphs, etc. is required to make the description as easily understandable and as transparent as possible. a) Physical environment: provide an adequate indication of the geographical distribution of the irrigation areas included in the project, the size ranges and whether or not the will be any expansion of irrigation area. Other information includes geology; topography; soils; climate and meteorology; surface and ground- water hydrology; and receiving water quality. b) Biological environment: flora; fauna; rare or endangered species; sensitive habitats, etc.; species of commercial importance; and species with potential to become nuisances, vectors or dangerous. A-6  c) Socio-cultural environment: land use (including current crops and cropping pattems); land tenure and land titling; present water supply and water uses (including current distribution of water resources if irrigation systems already exist in area); control over allocation of resource use rights. Task 3. Legislative and Regulatory Considerations. Describe the pertinent regulations and standards governing environmental quality, health and safety, siting, land use control, natural resources use, etc., at national, provincial and local levels. The analysis should focus on legislative and regulatory issues which have direct relevance to key impact variables identifies in Task I (i.e. land and water use changes due to irrigation rehabilitation; pesticide and fertilizer use; and animal manure). Task 4. Determination of the Potential Impacts of the Proposed Project. The analysis should focus on key variables on which project has an impact. The use of maps (with coordinates) and other graphic medium is requested for illustration purposes. Examples of potential impacts to be assessed might include: a) Project Location: loss of agricultural land; effects on water resources outside and inside command area. Particular attention should be paid to any impact on surrounding wetlands (e.g. Poyiang Lake). b) Project Design: disruption of hydrology (extremely important); design of dams and other structures; impact of agricultural production including higher fertilizer and pesticide use, more animal manure, etc.; traffic increase, impact of wholesale markets and other marketing components. c) Project Operation: impacts on soils (water logging, salinization, etc.); changes in ground water levels inside and outside command area; changes in surface water quality and risks of eutrophication; , etc. When describing the project impacts, indicate which are irreversible or unavoidable and which can be mitigated and how they can be mitigated. Task 5. Discuss the environmental assessment undertaken by the project S preparatory feasihility studie.s, for example, the assessment of pesticide use and management, including weaknesses and risks, the use of Integrated Pest Management (IPM). Task 6. Analysis of Alternatives to the Proposed Project. Describe alternatives that are examined in the course of developing the proposed project and identify other alternatives which would achieve the same objectives. The concept of alternatives might extend to siting, design, technology selection (i.e. selection of appropriate technical packages for farm production), construction techniques and phasing, and operating and maintenance procedures of structures. Compare alternatives in terms of potential environmental impacts; capital and operating costs; suitability under local conditions; and institutional, training, and monitoring requirements. To the extent possible, quantify the costs and benefits of each alternative, incorporating the estimated costs of any associated mitigating measures. This A-7  can be done based on the information collected and provided by the relevant feasibility study teams. Task 7. Development of Environmental Management Plan, with a focus on three generic areas: Mitigation measures, institutional strengthening and training, and monitoring. The emphasis on each of these areas depends on the needs in the specific project context, as identified by the environmental impact assessment. a) Mitigation of environmental impact: Recommend feasible and cost-effective measures to prevent or reduce significant negative impacts, if any, to acceptable levels. This work should be carried out in close cooperation of feasibility study teams; the consultant team should make sure that mitigation measures are worked out by technical agencies. For example, provincial or county Agriculture Bureaus may have already developed acceptable standardized designs for animal production sheds. Estimate the impacts and costs of those measures and provide a mechanism for ensuring that adoption of such designs is promoted under the project. If relevant, consider compensation to affected parties for impacts which cannot be mitigated. The plan should include proposed work programs, budgtt estimates, schedules, staffing and training requirements, and other necessary support services to implement the mitigating measures. Training activities should be developed in cooperation with other project feasibility study teams. b) Institutional strengthening and training. Identification of institutional needs to implement environmental assessment recommendations. Assess the strengths and weaknesses of institutions potentially involved in the project at local, provincial, and national levels, including their staffing, authority and capability, organization and management and knowledge and experience on environmental issues. Recommend steps to strengthen these institutions so that the management and monitoring plans in the environmental assessment can be implemented. The recommendations may extend to new agency functions, inter-sectoral arrangements, management procedures and training, staffing, operation and maintenance training, budgeting, and financial support. c) Monitoring: Prepare detailed arrangements for monitoring implementation of mitigating measures and the impacts of the project during implementation and operation. Include in the plan an estimate of capital and operating costs and a description of other inputs (such as training and institutional strengthening) needed to carry it out. Task 8. Assist in Inter-Agency Coordination and Public/Non Governmental Organization Participation. Provide inputs for Social Assessment and Participatory Rural Appraisal to obtain views of fanners and local authorities on key environmental management issues. Assist in coordinating the environmental assessment activities between different line agencies. Consult affected groups using stakeholder workshops and keep records of meetings, communications, and comments. A-8  Consulting Team Requirements. 14. The PPMO will hire the team of local consultants to carry out this assignment. The consultant team should include a proper mix of skills for carrying out the assignrment according to the terms of reference. Members of the team should consist of people with the following specialization: