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Asian Development Bank Rrp:Prc 35289 ASIAN DEVELOPMENT BANK RRP:PRC 35289 DRAFT PROJECT DOCUMENT SANJIANG PLAIN WETLANDS PROTECTION PROJECT FOR THE PEOPLE’S REPUBLIC OF CHINA 27 July 2004 CURRENCY EQUIVALENTS (as of 29 June 2004) Currency Unit – Yuan (CNY) CNY1.00 = $0.121 $1.00 = CNY 8.28 ABBREVIATIONS ADB – Asian Development Bank BCAP – Biodiversity Conservation Action Plan CSP – country strategy and program EMP – environmental management plan GEF – Global Environment Facility HPFD – Heilongjiang Provincial Forestry Department HPG – Heilongjiang Provincial Government NDRC – National Development and Reform Commission NFPP – Natural Forest Protection Program NTFP – non timber forest project NR – nature reserve NWCAP – National Wetland Conservation Action Plan PIU – project implementation unit PMO – project management office PRC – People’s Republic of China TA – technical assistance UNDP – United Nations Development Programme UNEP – United Nations Environment Programme VDF – village development fund WEIGHTS AND MEASURES ha – hectare km – kilometer km2 – square kilometer m – meter m3 – cubic meter NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends on 31 December 2000. (ii) In this report, "$" refers to US dollars. This report was prepared by a team consisting of K. Choe (team leader), L. Adriano, S. Ferguson; Xiaoying Ma and V. You CONTENTS Page LOAN AND PROJECT SUMMARY iii MAP(s) vii I. THE PROPOSAL 1 II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES 1 A. Performance Indicators and Analysis 1 B. Analysis of Key Problems and Opportunities 4 III. THE PROPOSED PROJECT 9 A. Project Objectives, Rationale, and Area 9 B. Components and Outputs 9 C. Special Features 16 D. Cost Estimates 16 E. Financing Plan 17 F. Implementation Arrangements 17 IV. PROJECT BENEFITS, IMPACTS, AND RISKS 22 V. ASSURANCES 25 VI. RECOMMENDATION 26 APPENDIXES 1. Project Framework 27 2. Chronology 33 3. Threats Analysis 34 4. Key External Assistance Relevant to Heilongjiang Province and to the Environmental Sector 38 5. The Role of the Global Environment Facility (GEF) in the Project 39 6. Project Components by Location 45 7. Project Costs and Financing Plan 46 8. Project Organization Chart and Fund Flows 50 9. Implementation Schedule 51 10. Summary of Resettlement Framework 52 11. Indicative Contract Packages 56 12. Outline Terms of Reference for Consulting Services 57 13. Capacity Building Requirements 61 14. Financial and Economic Analysis 63 15. Summary Poverty Reduction and Social Strategy 73 SUPPLEMENTARY APPENDIXES (available on request) A. Profile of Wetlands Biodiversity in the Sanjiang Plain B. Institutional, Legal, and Policy Analysis C. Site Selection and the Selected Six Nature Reserves D. Full Resettlement Framework (not transmitted) E. Resettlement Plan of Mishan County (not transmitted) F. Resettlement Plan of Baoqing County (not transmitted) G. Summary Initial Environmental Examination (not transmitted) 1. Summary IEE 2. Annex A: Environmental Management Plan 3. Annex B: Recommended Mitigation Measures 4. Annex C: Environmental Monitoring Requirements H. Global Environmental Facility Fund 1. Project Executive Summary 2. Annex A: Project Contribution to Operational Programs and Key Indicators of GEF Business Plan 3. Annex B: Threats Analysis 4. Annex C: Logical Framework for Sanjiang Plain Wetland Protection Project 5. Annex D: Incremental Cost Analysis 6. Annex E: Other GEF Assistance to China 7. Annex F.1: STAP Expert Review and IA/ExA Response Annex F.2: GEF Secretariat Review on 15 July 2004 and IA/ExA Response Annex F.3: World Bank Review on 15 July 2004 and IA/ExA Response Annex F.4: Convention Secretariat Comments on July 2004 and IA/ExA Response 8. Annex G: MOF Endorsement Letter for GEF I. Threats Analysis J. Social Aspects and Stakeholder Involvement MASTER NAME LIST OF PROJECT COMPONENTS AND ACTIVITIES Component 1: Watershed Management Subcomponent 1-1: Forest Improvement 1-1-1 New Plantations 1-1-2 Plantation Treatment Subcomponent 1-2: Local Level Water Resource Management Subcomponent 1-3: Watershed Level Water Resource Planning Component 2: Wetland Nature Reserve Management Subcomponent 2-1: Conservation Management 2-1-1 Monitoring and Data Collection 2-1-2 Data Analysis and Interpretation 2-1-3 Management Planning Subcomponent 2-2: Pilot Wetland Restoration 2-2-1 Pilot Wetland Restoration 2-2-2 Monitoring and Assessment 2-2-3 Wetland Restoration Manual Subcomponent 2-3: Wildlife Species Recovery 2-3-1 Recovery Planning 2-3-2 Monitoring and Assessment 2-3-3 Species Recovery Manual Subcomponent 2-4: Reduction of Resource Exploitation 2-4-1 Exploitation Analysis 2-4-2 Exploitation Reduction 2-4-3 Monitoring and Assessment 2-4-4 Resource Exploitation Reduction Manual Component 3: Alternative Livelihoods Subcomponent 3-1: Agro-Forestry and NTFPs 3-1-1 Intercropping 3-1-2 NTFPs Subcomponent 3-2: Village Development Fund 3-2-1 Village Development Plans 3-2-2 Guidelines for Wetland Restoration Manual Subcomponent 3-3: Sustainable Ecotourism 3-3-1 Ecotourism Master Planning 3-3-2 Ecotourism Guidelines 3-3-3 Ecotourism Promotion Component 4: Education and Capacity Building Subcomponent 4-1: Conservation Education 4-1-1 Teaching Kits 4-1-2 Teacher Capacity Development 4-1-3 School Outreach Subcomponent 4-2: Public Awareness 4-2-1 Extension to State Farms 4-2-2 Extension to Farmers/Villagers 4-2-3 Public Awareness Campaign Subcomponent 4-3: Wetlands Management Training 4-3-1 Training Needs Assessment 4-3-2 Short-term Training 4-3-3 Study Tours 4-3-4 Long-term Training 4-3-5 Workshops and Seminars 4-3-6 Exchanges and Internships Component 5: Project Implementation Subcomponent 5-1: Implementation Support to PMO Subcomponent 5-2: Environmental Management and Monitoring LOAN PROJECT SUMMARY Borrower : People’s Republic of China (PRC) 1 Project : The Sanjiang Plain comprises 108,900 square kilometers, where the Description Songhua, Heilongjiang, and Wusuli rivers are confluent in a vast alluvial floodplain in the northeast Heilongjiang Province. The Plain is one of the most important grain production areas in the PRC. Supporting rich biological diversity, which includes 23 species listed in the World Conservation Union as globally threatened, the wetlands in the Sanjiang Plain are some of the most species-rich and endemic-rich ecosystems in Asia. However, the wetlands and forestlands have shrunk to one fifths of their original size in the last five decades because of rapidly increasing population and grain production, and flora and fauna in the wetland nature reserves are threatened by farmland encroachment and water resource exploitation. To protect these ecosystems while supporting the sustainable development of the area, the Project adopts a holistic model framework of watershed management by (i) rehabilitating and protecting degraded forests in the upper watershed areas; (ii) restoring and protecting wetlands nature reserves in the downstream areas; (iii) providing alternative livelihoods to farmers; and (iv) strengthening the capacities of the local agencies in charge of watershed wetland and nature reserves management. By developing and pilot-testing a model framework to protect wetland biodiversity while promoting the sustainable development of the areas, the Project will be instrumental in establishing a wetland protection program in the PRC that protects wildlife biodiversity effectively and generates employment and income in a sustainable manner. Classification : Poverty: Other Thematic: Environment Environment : Category B: An initial environmental examination was undertaken, and a Assessment summary initial environmental evaluation was prepared. Rationale : The Sanjiang Plain is one of the richest areas in the PRC in globally significant flora and fauna (it supports 23 globally threatened species and 2 16 endemic species, and has 3 Ramsar sites), which are mostly concentrated in nature reserves (NRs). However, over the past five decades, the Government has extensively developed Sanjiang Plain for farming to provide food for the country, shrinking the wetlands to a fifth of their original size (because of conversion and sedimentation) and thus bringing about various climatic changes (dry weather, drought, and frequent floods) and water shortages throughout the area (low ground- water table). As the wetlands lost their self-cleaning capacity, plant and animal biodiversity of global significance was reduced. Further, this 1 Sanjiang means “three rivers”—the Heilong, Wusuli, and Songhua rivers. The Heilong and Wusuli rivers run along the border between the PRC and Russia, while Songhua River runs through the middle of Heilongjiang Province. The area of the Heilongjiang Province is almost equivalent to that of France, and the Sanjiang plain comprises 20% of Heilongjiang Province. 2 The Ramsar Convention on Wetlands, ratified by the PRC on 31 July1992, lists three wetland nature reserves in the Sanjiang Plain as wetlands of international importance. iv animal biodiversity of global significance was reduced. Further, this wetland biodiversity is threatened by local communities exploiting biological resources for income, inappropriate farming practices at NRs, and the limited management capacity of NR staff. Recent government policies and plans are aimed at halting and reversing environmental degradation in the area. However, the restriction of economic activities in the wetlands will affect the life and well-being of the communities,
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