China - Guangdong Pearl River Delta Urban Environment Project

25322 THE WORLD BANK GROUP InfoShop Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 01/06/2003 Section I - Basic Information A. Basic Project Data Country: CHINA Project ID: P075728 Project: Guangdong Pearl River Delta Urban Task Team Leader: Thomas L. Zearley Environment Project Authorized to Appraise Date: November 26, 2003 IBRD Amount ($m): 200.00 Bank Approval: May 25, 2004 IDA Amount ($m): Managing Unit: EASUR Sector: Sewerage (70%); Solid waste management Lending Instrument: Specific Investment Loan (SIL) (20%); Sub-national government administration Status: Lending (10%) Theme: Water resource management (P); Environmental policies and institutions (P); Pollution management and environmental health (P), Infrastructure services for private sector development (S) I.A.2. Project Objectives: The project development objective is to improve the quality of the urban environment in key cities in the Pearl River Delta (PRD), by following an integrated regional planning approach, in order to facilitate continued economic and social development. I.A.3. Project Description: The project would support infrastructure investments as well as technical assistance and capacity building at both provincial and city levels, as follows: (a) Wastewater Management in Guangzhou City, would include increase in the wastewater treatment capacity by about 400,000 m3/day in two plants, construction and rehabilitation of sewage networks to collect wastewater generated, interception of wastewater entering creeks and rivers, and storm water management (b) Incentive-based Lending for Inter-Muncipal Environmental Infrastructure in PRD Municipalities and Towns, would fund wastewater treatment and solid waste investments for groups of two or more contiguous municipalities or towns willing to plan, construct and manage shared facilities. Candidiate towns will be identified by appraisal, along with proposed investments, and institutional arrangements for construction and management of the facilities. (c) Solid Waste Management in Guangzhou City, would include investmerits in landfills and/or waste treatment plants for disposing of solid waste in Guangzhou and neighboring towns. 2 ISDS (d) Water Qualty Monitoring and Information Systems, would include a range of laboratory and field equipment (including automatic water quality recorders) and development of MIS to measure water quality in rivers in the PRD, and to enhance the capacity of the Provincial Environmental Protection Bureau to improve its efficiency and effectiveness for pollution control. (e) Technical Assistance and Capacity Building, would include (i) project implementation support for detailed design and construction supervision; (ii) launch of a public awareness campaign to inform citizens about the government's plans to clean up the river system, water quality objectives, and potential benefits and citizen support to detect and report polluters; (iii) strategic studies for urban development, water resource and environment management, wastewater and storm run-off management, agricultural and animal waste management, private-private partnerships in funding and managing environmental infrastructure, and financial policies and instruments for mobilizing long-term resources for environmental investments; and (iv) training in urban development, wastewater, solid waste management and water quality monitoring. 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.) The Pearl River Delta is located in the Province of Guangdong in the south of China. This province has a land area of 178,000 sq. km., constituting 1.9% of the country's total, and a total registered population in 1999 of 73 million or 5.8% of the total China population. Based on unofficial counts, the floating population of Guangdong, people who typically stay more than six months in the province, is estimated at between 12 and 15 million. While the project area is generally defined as the PRD, the majority (if not all) the investments to be funded by the Bank would be concentrated in metropolitan Guangzhou, which is the political, economic and cultural hub of the PRD. Here is where the three major branches (Xi Jiang, Bei Jiang, and Dong Jiang) of the Pearl River meet, and then flow into the South China sea via eight outlets forming the tributary channels within the Delta. Since the opening of China in 1979, the Delta region has witnessed phenomental economic growth with average GDP rising by 14.7% on average over the period 1990-2000, the Delta has strong ties with the two Special Adminsiration Regions of Hong Kong and Macau, and has become the major outlet for manufactured goods to the rest of the world. Both the total population and the urbanization rate have increased equally rapidly. During 1990-2000, the population in the PRD rose by almost 7% to nearly 40 million inhabitants, largely due to inward migration of workers seeking employment. This rapid growth has come at a heavy environmental cost. Investment in environmental protection has not kept pace with the rapid economic advances, which is evident in the serious deterioration in river water quality during that period. Today many of the reaches of the Pearl River, especially in the vicinity of Guangzhou are at Class V or worse, and therefore unfit as a drinking water source. A growing volume of municipal, industrial and hazardous solid waste also present considerable risks to health, surface and ground water sources in the PRD. This deteriorating situation poses serious threat to drinking water sources, including the drinking water supply to Guangzhou and Hong Kong. It also renders the river system unsuitable for irrigation, aguaculture and potential recreational use. The government's strategy has been to move drinking water intakes upstream to avoid contaminated supplies. This approach is not sustainable. 3 ISDS B. Check Environmental Classification: A (Full Assessment) Comments: C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) Yes No S TBD Natural Habitats (OP/BP/GP 4 04) Yes *No C TBD Forestry (OP/GP 4.36) Yes 0 No C TBD Pest Management (OP 4.09) Yes *No CTBD Cultural Property (OPN 11.03) Yes No *TBD Indigenous Peoples (OD 4.20) Yes *No STBD Involuntary Resettlement (OP/BP 4.12) * Yes No C TBD Safety of Dams (OP/BP 4.37) S Yes *No S TBD Projects in International Waterways (OP/BP/GP 7.50) C Yes 0 No S TBD Projects in Disputed Areas (OP/BP/GP 7.60)* S Yes * No S TBD *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section H - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues Please fill in all relevant questions If information is not available, describe steps to be taken to obtain necessary data. II.D.1a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. Overall the project is expected to have considerable positive environmental impact on the PRD, through a combination of expanded infrastructure investments, policy reforms, and capacity building and strategic studies. The main environmental issues that will be tackled during preparation include: (a) Industrial, and Non-Point Source Pollution. Treatment of municipal wastewater alone will not meet the objective of improving water quality in the PRD river system, if complementary action is not taken to address pollution from industry and non-point sources Industrial pollution control will be addressed through a parallel program of the Guangdong Provincial Government (GPG) under the Industrial Pollution Control Action Plan, which will target the worst polluters from among about 165 industries. However, the pollution load contribution from the small town and village industrial enterprises (TVIE), of which there are many, is not strictly regulated yet. The challenge for the project will be to develop fail safe measures to capture and treat this source of pollution. Another area is the wastewater from agriculture and livestock farming, the impacts of which are not known. The project will include a study of this problem and it is expected that a regulatory framework to control this source of pollution will be formulated. The project preparation will also look at the impact of water pollution on the aquaculture industry in the PRD, and suggest ways this problem can be mitigated. (b) Levels of Wastewater Treatment. The government's recommendations are for full secondary treatment, without regard for the receiving water quality, which is often an unaffordable and unnecessary solution. Options for least-cost wastewater treatment would be examined, due to the high cost of secondary treatment, and the prevailing low tariffs, which grossly under-price services. Options to be considered include: (i) interception, transmission downstream of Guangzhou city, and discharge to the 4 ISDS river, following preliminary treatment, if adequate dilution and dispersion can be achieved; and (ii) a range of other levels of secondary treatment. (c) Treatment and Disposal of Sludge. The volumes of sludge generated with the installation of increased treatment capacity will present challenges to PRD cities. Treatment and disposal of sludge in an environmentally-safe manner will be developed as an integral part of the project. It has been reported that Guangzhou city is about to contract a BOT operation for sludge treatment for the city. Whether the capacity is adequate to treat the sludge generated from the proposed 400,000 m3/day plant under the project is not known at this stage. The problem would need to be addressed for Guangzhou, and any other cities that would decide to participate in the project. (d) Tunnel Spoil. If the tunneling option is adopted, there will be large quantities of excavated material that would need to be safely disposed The EIA will address this issue and specify mitigation measures. Among the key social issues that may be encountered are: (a) Of possible concern is the affordability of improved wastewater services especially among lower income households. This issue will be reviewed during project preparation through the "willingness to pay survey". The results of this survey will help establish the new tariffs for wastewater services for Guangzhou to ensure they are affordable. (b) The Guangzhou wastewater component will involve some resettlement of residents where the new intercepters, sewage network pipes and landfills are to be installed. While many of the residents will certainly benefit from receiving better accommodations and services, the relocation could impact the social structure of these areas and possibly the economic situation of the affected persons. Following a survey of all affected persons, a Resettlement Action Plan (RAP) will be prepared ensuring consultations with, and full participation of stakeholders, in accordance with the Bank's social safeguards policies and practices. The RAP design will demonstrate that negative impacts have been mitigated as much as possible. (c) The task team has proposed that the Technical Assistance component of the project include the design and launch of a public awareness campaign to inform residents in PRD cities about the Provincial Government's (a) investment plans to clean up the river system, (b) water quality objectives and their potential benefits, (c) rationale and need for consumers to pay higher charges for improved infrastructure services, and (d) what citizens can do to detect and report polluters. The details of this activity will be more fully developed during project preparation. II.D.1b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. Not Applicable. II.D.Ic Describe any potential long term impacts due to anticipated future activities in the project area. The need for a coherent and integrated regional development strategy to guide future PRD environmental investment planning underscores the importance of the proposed project. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) 5 ISDS Both waste water and solid waste treatment options would be evaluated in the usual manner for such Bank projects in order to acheive least-cost and optimal environmental impact solutions. II.D.3. Describe arrangement for the borrower to address safeguard issues Compliance with the Environmental Assessment, Environmental Management Programs, and Resettlement Action Plans will be required. Not applicable. 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 project is being designed and prepared in a participatory manner. The GPG-PMO, with its team of international and national consultants, have held numerous consultative meetings and formal workshops with representatives of the provincial and municipal governments to apprise them of the environmental and development issues, and to formulate the strategic framework for addressing environmental issues in the PRD. Similarly, these and other GPG-PMO consultants are visiting local governments to assess their environmental investment plans and priorities and their interest in the Bank-financed project. This is all aimed at facilitating participatory consultations, garnering stakeholder support for the project concept, and educating these stakeholders beforehand on their roles and responsibilities in project execution. The GPG-PMO, together with faculty and students at Zhongshan University (of Guangzhou), are carrying out social surveys of potential beneficiaries and users of project services. These surveys will provide information for project design by, inter alia, analyzing beneficiary demand for improved wastewater and solid waste services, and the willingness and ability to pay for them. Special attention will be given to ensuring that poorer households can afford services provided under the project. The participatory approach for the resettlement aspects of the project, particularly those associated with the construction of an expanded Guangzhou wastewater network, which will be included in the project, will be dealt with in the RAP, following Chinese and Bank procedures and guidelines closely. Guangzhou city has had previous experience in successfully handling resettlement on the ongoing Bank-financed Transport Project (Ln. 4329). The most recent supervision report states that this "is a model project for resettlement" and that the "techniques and procedures adopted are being used as examples of good practice for other projects" The proposed project would draw upon these experiences. 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. [X] SL. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas ] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable ] S3. - No safeguard issues [ ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements 6 ISDS Environmental Assessment/Analysis/Management Plan. Expected Actual Date of receipt by the Bank 7/18/2003 Date of "in-country" disclosure 6/18/2003 Date of submission to InfoShop 11/10/2003 Date of distributing the Exec. Summary of the EA to the ED 12/1/2003 (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank 7/18/2003 Date of "in-country" disclosure 6/18/2003 Date of submission to InfoShop 11/10/2003 Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Thomas L Zearley 1/06/03 Project Safeguards Specialists 1- Chongwu Sun, Environment Project Safeguards Specialists 2: Chaogang Wang, Social Development Project Safeguards Specialists 3. Approved by: Name Date Regional Safeguards Coordinator: Glen Morgan 1/06/03 Sector Manager/Director. Keshav Varma 1/06/03 For a list of World Bank news releases on projects and reports, click here 51ARc rEOACK 51E MAP sHOWCASE