China - Jiangxi Integrated Agricultural Modernization Project

Report No. 23859 Report No: I065463 <--Please check for duplicates! Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 03/13/2002 Section I - Basic Information A. Basic Project Data Country: CHINA Project ID: P065463 Project: Jiangxi Integrated Agricultural Modernization Project Task Team Leader: Sari K. Soderstrom Authorized to Appraise Date: March 18, 2002 IBRD Amount ($m): 100.00 Bank Approval: June 25, 2002 IDA Amount ($m): Managing Unit: EASRD Sector: AI - Irrigation & Drainage; AM - Agro-Industry & Marketing; AY - Other Agriculture; BI - Institutional Development Lending Instrument: Specific Investment Loan (SIL) Status: Lending I.A.2. Project Objectives: The development objective of the proposed project is to improve the livelihood of the farmers in the project areas through establishment of integrated, sustainable and market driven agricultural production systems focusing on productivity and high quality agricultural output. Improved livelihood is defined as increased incomes as well as other indirectly income generating improvements such as access to irrigation and drainage, access to markets, and access to information and knowledge. I.A.3. Project Description: General. The proposed project has three main components: (i) Irrigation and Drainage; (ii) Farm Production Improvement; and (iii) Market Systems Development. In addition, Project Management, Monitoring and Evaluation is treated as a separate component. The proposed project includes 96 small scale irrigation schemes scattered throughout the province, basically representing all landform features of the province. Each sub-project comprises of an upland reservoir or weir, diverting irrigation water into a system of lined and unlined canals extending from the foothills to the flat irrigated areas mainly located within river floodplain and river terraces. The proposed project also includes improvement of existing rural (access) roads. Irrigation and Drainage Component. 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 (household level) irrigation development for agriculture modernization. The component would include: (i) rehabilitation of existing irrigation works including diversion weirs; main and secondary canals and drains, canal and drainage structures; and pumping stations (works and goods); (ii) construction of tertiary (on-farm) irrigation 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-Managing Irrigation and Drainage Districts (SIDD) systems for the irrigation command areas upgraded under the project to ensure more efficient and sustainable use of land and water resources for irrigated agriculture (technical assistance).  Farm Production Improvement Component. The specific objective of the Farm Production Component is to support improved (i.e. higher value) agricultural production based on irrigated and drained land, including: (a) irrigated field crops; (b) livestock (pigs, chickens, ducks, geese); (c) small-scale on-farm fish production; and (d) upland crops. The Component would be targeted to the farmers who benefit from the Irrigation and Drainage Component, and it would include the following sub-components: (i) soil fertility improvement; (ii) farm production support, (iii) training and extension, and (iv) support to women farmers. Market Systems Development Component. The specific objective of the Market System Development 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 would focus on activities that add value to the investments in irrigation and drainage and in the improved agricultural production. The Component consists of the following sub-components: (i) provision of marketing advice; (ii) promotion of farmers' marketing groups; (iii) support to agro-enterprises; (iv) agricultural product markets; and (v) "marketing assistance grants" including strategic market studies, promotion of the adoption and use of quality standards, and improvements to market information systems. Project Management, Monitoring and Evaluation. The objective of this Component is to develop and strengthen the overall implementation capacity of the various levels of project management offices and promote effective community participation in project activities. The component includes: (a) project management; (b) institutional strengthening of Project Management Offices (PMOs) at provincial, prefecture/city, county and township levels (goods and training); (c) establishment of a monitoring and evaluation system that includes environmental and social indicators (technical assistance and training); and (d) development of community advisory/participation groups (technical assistance and training). 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. The proposed project is located in 21 counties in Jiangxi Province. (Chongnen, Nancheng, Yihuang, Chongyi, Gan, Golden Development District, Longnan, Quannan, Shicheng, Xinfeng, Xingguo, Xunwu, Zhanggong District, Hukou, Pengze, Wuning, Yongxiu, Dexing, Hengfeng, Guangfeng, Yugan). Key Environmental Characteristics. The majority of proposed project counties (18 of 21) drain into the Poyang Lake and its wetlands through five river systems of Gan, Fu, Xing, Rao, and Xiu that originate from the mountainous and hilly areas to the east, south and west of the province. Poyang Lake, the largest fresh water lake in China is located in the northern part of Jiangxi, on the right bank of the Yangtze River. Poyang Lake is a flow-through, seasonal lake and after a period of residence in the lake, the lake water flow north and drain into the Yangtze River. Proximity to Protected Areas and/or Critical Natural Habitats. In total, 55 natural reserves are established in Jiangxi Province. Based on a desk study, it appears that four natural reserves are found to be very close to the proposed irrigation schemes. The EIA has therefore recommended that before any construction activity starts adjacent to such areas, the - 2-  project proponent should contact the respective authorities at the Jiangxi Wildlife Protection Administration Bureau of the Jiangxi Forestry Department or their National counterparts. It has been agreed that no project works will take place in natural reserves or within buffering zones of natural reserves. The table below indicates the natural reserves that are potentially close to proposed project activities. However, since the final plans for these activities are not finalized, the actual impact cannot be assessed. Final sub-project designs will be amended to prevent any impacts on natural reserves and will be reviewed by the Bank prior to implementation Main Natural Reserves in the Project Counties Name Position Area Main Protection Object Remarks Taohongling Sika (Cervus nippon kopsci) Natural Reserve Located in the border of Huanghua, Huangling and Dongsheng in the eastern Pengze, E 16 40?>116 45, N, 29 48?>30 53? 4500 ha (core area 2700 ha, buffering area 7000 ha) The southern sub-species of Cervus nippon kopsci. National Natural Reserve. The vegetation is mainly shrub and grass thicket in low hill woodland. Other fauna species include Panthera pardus, Hydropotes inermis, Muntiacus reevesi and Cuon alpinus etc. The nearest straight distance of the Fang Lake Irrigation Area is about 1.0-1.5 km from the boundary of the protection zone. Yihuang South China Tiger (Panthera tigris amoyensis) Natural Reserve Located in Yun Mountain Range surrounding Yuyazhang Peak in the southeastern Yihuang, E116 14?>116 17? N27 10?>27 20? 52600 ha (core area 7000 ha) Panthera tigris amoyensis and its habitat Provincial Natural Reserve. The Yishui Irrigation Area could be located inside the buffering area of this natural reserve. Jiulian Mountain Natural Reserve Located in the southern Longnan, E114 27?l114 28?' N, 24 31?>24 39? 4066 ha (core area 1700 ha) Subtropical evergreen broad-leafed forest the wild animals in it. Natural Reserve. The Taipingjiang Irrigation Area is partially within the natural reserves protection zone. Yangling Natural Reserve Located in the northeastern Congyi E114 20?, N25 45? 1880 ha Subtropical evergreen broad-leafed forest and the wild animals. Provincial Natural Reserve. The Xiaojiang Irrigation Area is envisaged to be located near the boundary of the protection zone. Poyang Lake, Taibo and Fang Lake of Pengzhe County, Nanbei Lake Port of Hukou County, and the lakeside beach in Yugon have become the over wintering habitat of some rare migratory birds such as Siberian White Crane (Grus lencogeranus), White-napped Crane (Grus vipio), Whistling Swan (Cygnus columbianus), Acopoli (Anser albifrons), Oriental white stork (Ciconia boycina), white spoonbill (Platalea leucorodia), and Linnacus (Anser cygnoides). In order to prevent any negative impact of potential noise and construction workers hunting of the birds, the EIA recommends to halt construction work in proximity of their wintering areas during peak periods in the months of November and December. It has also been agreed that detailed design of the irrigation and drainage works will be carried out so that there will be no net loss of wintering habitat for these birds as a result from the project. Key Social Characteristics -3-  Socio-Economic Situation of Project Beneficiaries. The majority of the directly targeted beneficiaries of the proposed project are farm households which farm in poorly irrigated and drained areas, primarily from the poorer strata of rural society. Their subsistence depends to a high degree on rice and other food produced on the approximately one mu (=1/15 ha) of land they have per household member. Crop production is frequently complemented by animal husbandry activities such as raising pigs or chickens, and off-farm employment which adds significantly to household income. The availability of effective drainage and irrigation is of crucial importance for the livelihood of these families since it enables them to grow a second and third crop, to reach higher yields, and to become engaged in the production of higher-value (cash) crops. Other beneficiaries and stakeholders of the project are: (i) farmer peasant families in other areas of the project counties who could benefit from the market system development, training, applied research and agricultural extension; (ii) employees, managers and owners of agro-enterprises; (iii) other parts of the population (consumers of food products); and (iv) government officials and employees in the project counties. Religious and Linguistic Composition. Followers of Chinese folk religion--that amalgam of Buddhism, Taoism and ancestor reverence--are prevalent among the population in the project areas. A small minority is Christian. The project areas in the northern and central parts of Jiangxi speak the Gan dialect of Han Chinese, while most of those in the southern project counties speak Hakka, another Han Chinese dialect. Ethnic Composition. Over 99% of all residents in the directly affected project areas are of Han nationality; only small numbers of the Shi, Yao, Li, and Hui minorities are resident there. The She, mostly recent migrants from Zhejiang Province to the east, live fairly dispersed throughout the project areas, and are basically acculturated to Han patterns. The Yao are mostly concentrated in the southwest of the province, in the counties abutting Guangdong, and have maintained both their residential segregation and their Yao cultural distinctiveness. There is one significant Yao village in the project area, Yaoshan. There the local Yao are mainly engaged in hunting, timber felling, corn, potato and taro planting and the collection of mountain forest products. The proposed project is paying particular attention to this village by allocating funds for infrastructure and small-scale loans and by providing additional support with the help of the Provincial Women's Federation. Social Structure in Villages. Historically, clan organizations were ubiquitous in rural communities of Jiangxi. Today, the project areas can be classified into three types in terms of their social structure in accord with marriage relations, internal village organization, and the degree of clan influence on community affairs. In some areas, the clan elders are the key decision-makers, while in others, local entrepreneurs or local cadre are equally important, if not more so. The project villages will be classified according to social structure to facilitate beneficiary participation in project implementation. Level of Education and Health Services. As elsewhere in China, all levels of governments are trying to achieve universal elementary school enrollment. Nevertheless, some problems of low enrollment rates and high drop-out rates in both junior and senior high schools remain. Medical and public health institutions and villagers' access to medical treatment are of on average satisfactory quality. However, many medical apparati are outdated and women report severe gynecological problems. Most importantly, - 4 -  fees for health services are often not affordable to farmers and other rural dwellers. Status of Women. The status of women in Jiangxi has improved considerably over the last decades. Today, most women actively participate in decision-making on major family matters. However, inequalities still exist. Women are generally less well educated than men and if they work outside the house, they work in relatively low-paid positions. Due to seasonal out-migration of middle-aged men and younger (both male and female) workers, many farm households are headed by women and a large share of the farm work is carried out by women. This feminization of agriculture in Jiangxi means that women make up a very large part of the targeted beneficiaries of the project. B. Check Environmental Classification: B (Partial Assessment) Comments: Environmental Impact Assessment. An environmental impact assessment (EIA) of the proposed project has been carried out in parallel with project preparation. The EIA has: (a) established a reliable environmental baseline against which to measure future change; (b) established environmental objectives, standards and performance indicators; (c) identified additional environmental project sub-components; (d) identified benefits and residual impacts or risks (i.e. those that cannot be avoided or mitigated); (e) designed environmental monitoring and mitigation plan with a schedule and triggers for action; and (f) provided guidance to more detailed planning and implementation. The project has been categorized as a Environmental Risk Category B and Safeguards risk category S2. The ratings were given on the basis that the project only involves works in existing schemes and mainly involves rehabilitation of these works. This category is consistent with guidance given in GP 4.01 Annex 1(b) and is consistent with recent practice in the East Asia Region on projects of similar scope. Adverse impacts, if any, are expected to be localized. Environmental issues which may be encountered under the project can be managed with known mitigation measures which are defined in the Environmental Management Plan. Anticipated Environmental Impacts. The environmental analysis of the proposed project indicates that the project would have no major direct negative impact on the natural environment. The overall objective and proposed design of the project suggest that the net environmental impact of the project, if successfully implemented, will be positive and that any negative environmental effects will not be irreversible or long-term. The proposed project would bring environmental benefits through a more efficient use of natural resources. Most importantly, the rehabilitation and institutional reform of existing irrigation and drainage schemes would lead to more efficient land use practices, reducing the incidence of waterlogging and soil salinity, and soil erosion/mining. Other positive impacts are expected through the farm production improvement and marketing component, which would address issues like soil erosion, soil fertility, nutrient leaching, and promote environmentally sustainable agricultural production (including Integrated Pest Management) and marketing practices. The most substantial potential negative impacts of the proposed projects could be expected from a more intensive agricultural production that might cause a general increase in non-point source pollution, especially from nitrogen (N) and phosphorus (P) fertilizer application. The present P levels at Poyang Lake are reaching the higher limits and increase in use - 5 -  of such fertilizers, if not well managed, could have negative impact. Over use of N fertilizer by the local farmers could also cause eutriphication within major water bodies, including Poyang Lake. The proposed project in its design will put strong emphasis on mitigating these effects by introducing more efficient application techniques to farmers. Most importantly, the proposed project would support integrated pest management (IPM), including: (a) managing pests (keeping them below economically damaging levels) rather than seeking to eradicate them; (b) relying, to the extent possible, on non chemical measures to keep pest populations low; and (c) selecting and applying pesticides, when they have to be used, in a way that minimizes adverse effects on beneficial organisms, humans, and the environment. Other potential negative impacts include a possible increase in incidents of schistosomiasis within the project counties in the perimeter of the Poyang Lake and Yangtze River, and to a much smaller scale, noise or pollution of construction sites, increased transportation under the proposed project, and increased waste disposal from wholesale markets. To prevent or reduce the adverse direct and indirect environmental impact of the proposed project as identified in the EIA report, an Environmental Management Plan (EMP) has been developed to provide a plan to implement the identified monitoring and mitigation measures. The EMP also provides a budget estimate, manpower needs and training/capacity building requirements in order to ensure efficient implementation of the EMP. The EIA has been carried out by an independent local institute (Jiangxi Provincial Environmental Protection Research Institute) who is certified to undertake environmental impact assessments according to Chinese regulations. A Bank contracted consultant worked closely with the EIA team to advise them in their work. The EIA work is fully in line with the highly participatory preparation approach of the proposed project. An inception report including a detailed work plan and outline of the EIA report was prepared and submitted to Provincial PMO and the Bank before any work started. A first draft of the EIA was completed in mid September 2001 and submitted to the Bank for review. It was distributed to all project-affected groups and other key stakeholders (as identified by the Social Assessment team) to be used as background for project appraisal. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) Yes Forestry (OP/GP 4.36) Yes Natural Habitats (OP/BP 4.04) No Safety of Dams (OP/BP 4.37) Yes Pest Management (OP 4.09) Yes Involuntary Resettlement (OP/BP 4.12) Yes 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. -6-  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. Environmental Assessment, Natural Habitats, and Pest Management: See above. The final designs for project activities will be such that no impact will take place on natural habitats or any cultural properties. Cultural Property. It is possible that cultural heritage will be damaged due to the project, the main threat being the removal of earth for construction purposes. For this reason, a Cultural Heritage Desk Study was carried out by the Borrower and a report issued. Based on the outcome of this study, a full Cultural Heritage survey was determined not to be needed for any project county or site. However, the study will be distributed to all county project management offices and implementing entities to raise the awareness about risks to cultural heritage under the proposed project. Moreover, training will be provided to the construction teams for the rehabilitation and extension of irrigation and drainage sites to raise their awareness and teach them how to proceed in case any items with cultural heritage significance are found. Indigenous People. While the number of minorities in the project area is very small, some Shi, Li, Hui and Yao do reside there . Given this situation, a social assessment was carried out to learn more about and from these minorities and to recommend to the Borrower and the Bank as to whether a minorities-targeting development plan needed to be devised. It was determined that current conditions for the "Shi" nationality and the "Yao" nationality warranted such a Multi-Nationalities Development Plan (MNDP) as the appropriate approach for the application of OD 4.20 to the project to ensure that indigenous people benefit from development projects and to avoid or mitigate potentially adverse effects on indigenous people caused by Project activities. A draft MNDP has been submitted to the Bank for review. Involuntary Resettlement. Some project activities such as construction of roads, canals, and market places might make unavoidable the permanent or temporary acquisition of land that is used by individual farm households or communities. Although at the time of project pre-appraisal no such land acquisition (or any kind of involuntary resettlement) was identified, a Policy Framework for Resettlement and Land Acquisition has been prepared in case such resettlement or land acquisition would occur during project implementation. The draft Land Acquisition Framework has been submitted to the Bank for review. Safety of Dams. Only rehabilitation of existing reservoirs will be funded under the project. However, about three-quarters of the irrigation districts tentatively included for rehabilitation and construction under the project are served by reservoirs. According to Chinese national regulations relating to dam safety and consistent with World Bank guidelines on Dam Safety, existing dams serving irrigation areas which will be rehabilitated under the project would be subject to safety review in accordance with procedures acceptable to the Bank if such dams exceed 15 meters in height or 10 meters in height and 2.5 million cubic meters in storage capacity. These dam safety reviews, and strengthening of dams where necessary, would be financed by counterpart (grant) funds. Safety reviews shall be carried out prior to any irrigation rehabilitation and construction. Jiangxi Province has good knowledge in and capacity in implementing project in accordance with OP 4.37. Jiangxi has had a number of project including large-scale irrigation works that have triggered the -7 -  policy. II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. n/a II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. n/a II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) n/a II.D.3. Describe arrangement for the borrower to address safeguard issues Borrower is well aware of the Bank's safeguard procedures and has fully integrated them into the project design. Monitoring of safeguard issues has been made part of the regular monitoring activities. 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. The nature of the proposed project requires that it is highly community driven in design, preparation and implementation. This bottom-up approach was already initiated through the initial PRAs carried out in July 1999. Moreover, beneficiaries need to be intimately involved in the design of the various project components and activities. Therefore, during later preparation, another round of PRAs, utilizing the fieldwork methods of cultural anthropology and a semi-structured questionnaire survey, were carried out as an integral part of a Social Assessment (SA) process. This approach of SA will continue during implementation. In order to seek local support, to increase transparency and accountability to the public, to reach consensus with various stakeholders, and to enhance ownership of the environmental management and the proposed project, participation of beneficiaries and other stakeholders was of crucial importance in the environmental assessment process. In order to keep all beneficiaries informed, the EIA Terms of Reference (TOR) were sent to the libraries within the affected communities for review and comment by the interested parties. Notices were issued and were put up on notice boards. News media including local newspapers, television and radio were also used extensively to inform all beneficiaries and potentially affected people within the areas of project impact about the planned environmental study, and their input was sought actively. In order to "streamline" beneficiary participation in project design and later in implementation a separate Beneficiary Participation Plan (BPP) was prepared in close cooperation with the EIA and established the means and mechanisms by which project beneficiaries would participate in a meaningful way in project implementation. All consultations were appropriately recorded. Training and capacity building are proposed as part of the project to enhance the Borrower's ability to implement the project in a participatory manner. The purpose of the BPP is to describe in detail and formalize the consultation and participation process with affected groups. As such, it is a strategy for allowing stakeholders to influence and share control - 8 -  over the decisions and resources that affect them. The BPP should be viewed as a working document that is modified to reflect any changes in the project and/or in the economic, political, and social conditions. 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. I S1. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [XI S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable I S3. - No safeguard issues I 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 Not Available 9/28/2001 Date of "in-country" disclosure Not Available 9/28/2001 Date of submission to InfoShop Not Available 1/2/2002 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank Not Available 10/31/2001 Date of "in-country" disclosure Not Available 11/30/2001 Date of submission to InfoShop Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Not Available 9/28/2001 Date of "in-country" disclosure Not Available 11/30/2001 Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Not Available 11/30/2001 Date of "in-country" disclosure Not Available 11/30/2001 Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Not Available 11/30/2001 Date of "in-country" disclosure Not Available 11/30/2001 Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Sari K. Soderstrom 12/14/2001 Project Safeguards Specialists 1: Zong-Cheng Lin/Person/World Bank 12/17/2001 Project Safeguards Specialists 2: Robert D. Crooks/Person/World Bank 03/05/2002 Project Safeguards Specialists 3: Chaohua Zhang/Person/World Bank 03/08/2002 Approved by: Name Date Regional Safeguards Coordinator: Glenn S. Morgan 03/08/2002 Sector Manager/Director: Mark D. Wilson 12/17/2001 For a list of World Bank news releases on projects and reports, click here -9-