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Addendum to the Initial Environmental Examination

Project Number: 44035-014 October 2017

People's Republic of China: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project – Addendum to the Initial Environmental Examination

Prepared by the Project Management Office of Ningxia Hui Autonomous Region for the Asian Development Bank.

This Addendum to the Initial Environmental Examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, Management or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Safeguards Addendum (Environment)

Project Number: 44035-014 October 2017

People‘s Republic of China: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

Addendum to the Initial Environmental Examination (IEE) on the Proposed Project Scope Changes –Newly Proposed Binggou, Wuhudun, and Ma’anshan Subprojects in Yinchuan Municipality; supplementary rural road upgrading in Hongsipu District and replacement of yellowhorn orchards in Tongxin County of Wuzhong Prefecture

(Revised)

Prepared for the Asian Development Bank By the Project Management Office of the ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

This is an addendum to the initial environmental examination (IEE) originally posted in September 2012 available on https://www.adb.org/projects/documents/ningxia-irrigated-agriculture-and-water-conserv ation-demonstration-project-iee.

1 II

Figure 1 Layout of Project Before (in September 2012 at IEE) vs After (updated in October 2017) the Proposed Scope Changes in Yinchuan Municipality, Ningxia Hui Autonomous Region in PRC

Source: updated on basis of the Project IEE (July 2012) by the LIEC

Source: based on Google Earth (2017) and the domestic TEIAR, by the LIEC

CURRENCY EQUIVALENTS (as of 2 October 2017, source from website of the Bank of China)

Currency unit – yuan (CNY) CNY1.00 = $0.1507 $1.00 = CNY 6.6369

ABBREVIATIONS ADB – Asian Development Bank AQG – Air Quality Guideline BOD5 – 5-Day Biochemical Oxygen Demand CNY – Chinese yuan CO – Carbon Monoxide COD – Chemical Oxygen Demand CPS – Country Partnership Strategy EA – Executing Agency EHS – Environment, Health and Safety EIRR – economic internal rate of return EIRF – environmental impact registration form EIS – environmental impact statement EMC – environmental management consultant EMP – environmental management plan EMS – environmental monitoring station EPB – environmental protection bureau GDP – gross domestic product IA – implementing agency IEE – initial environmental examination IEM – independent environmental monitor MEP – Ministry of Environmental Protection NARC – Ningxia Agricultural Reclamation Group Company, Ltd NFD – Ningxia Finance Department PIO – project implementing office PPMO – provincial project management office PRC – People‘s Republic of China RP – resettlement plan SPS – Safeguard Policy Statement TDS – total dissolved solid TEIAR – tabular environmental impact assessment report WUA – water users association.

WEIGHTS AND MEASURES dB(A) – decibel (“A” weighting filter) ha – hectare kg/d – kilogram per day km – kilometer km2 – square kilometer kPa – kilopascal m – meter m2 – square meter m3 – cubic meter m3/d – cubic meter per day m3/s – cubic meter per second

mg/m3 – milligram per cubic meter ML – megaliter mm – millimeter mu = Chinese unit of land area equal to 1/15 ha or 667 m2

NOTE In this report, "$" refers to US dollars.

This addendum to the initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

Table of Content

Chapter I Introduction ...... 1 1.1 Background ...... 1 1.2 Methodology and Approach ...... 2 Chapter II Proposed Scope Changes...... 3 2.1 Implementation Progress and Proposed Scope Changes ...... 3 2.2 Justification for the Proposed Changes ...... 5 2.3 Rationales for the Proposed Changes ...... 7 Chapter III Legal and Administrative Framework ...... 10 3.1 Evaluation Standards ...... 10 3.2 Domestic Approval Status of the Proposed Scope Changes ...... 13 Chapter IV Descriptions of the Proposed Scope Changes ...... 15 4.1 General descriptions...... 15 4.2 Summary of engineering design in the proposed scope changes ...... 17 4.3 Regional water resource analysis and linked/existing facilities in the proposed scope changes ...... 30 4.4 Assessment Areas and Sensitive Receptors ...... 39 4.5 Assessment Period ...... 49 Chapter V Environmental Baseline ...... 50 5.1 Physical Environment ...... 57 5.2 Baseline environmental monitoring ...... 64 5.3 Main environmental issues in the assessment area ...... 75 Chapter VI Alternative Analysis ...... 76 6.1. No Project Alternative ...... 76 6.2. Discussion of Alternative Solutions ...... 76 Chapter VII Environmental Impact after the Proposed Scope Changes and Relevant Measures ...... 78 7.1 Environmental Benefits and Summary of Potential Impacts ...... 78 7.2 Environmental Impacts and Mitigation Measures during Construction Phase80 7.3 Environmental Impact and Mitigation Measures during Operation Phase ..... 85 Chapter VIII Information Disclosure and Public Consultation ...... 94 8.1 Legislative Framework for Public Consultation ...... 94 8.2 Information Disclosure Activities ...... 94 8.3 Public Consultation Activities...... 95 94 Chapter IX Environmental Management Plan, Monitoring Program ...... 100 Chapter X Economic Assessment ...... 101 Chapter XI Conclusions and Suggestions ...... 102

Appendix A Environmental Management Plan ...... 103 Appendix B Approval of Domestic TEIAR…………………………………….. 140 Appendix C Regional Water Resource Analysis……………………………….. 141

iii

List of Tables and Figures

Figure 2- 1 Yinchuan Urban Masterplan (2011~2020) ...... 9

Figure 4- 1 Layout of the Proposed Binggou Subproject ...... 22 Figure 4- 2 Sample Landscaping Design Scheme of the Proposed Binggou Subproject ...... 23 Figure 4- 3 Layout of the Proposed Wuhudun Subproject ...... 24 Figure 4- 4 Sample Landscaping Design Scheme of the Proposed Wuhudun Subproject ...... 25 Figure 4- 5 Layout of the Proposed Ma’anshan Subproject ...... 26 Figure 4- 6 Sample Shelterbelts Design Scheme of the Proposed Ma’anshan Subproject ...... 27 Figure 4- 7 Sample Nersury and Ecological Forest Design Scheme of the Proposed Ma’anshan Subproject ...... 27 Figure 4- 8 Other good samples nearby Ma’anshan Subproject area ...... 28 Figure 4- 9 Layout of Hongsipu Subproject area ...... 29 Figure 4-10 Layout of Tongxin subproject area ...... 29 Figure 4- 11 Good afforestation sample for Tongxin subproject area ...... 30 Figure 4- 12 Sample Water-saving Irrigation Design Scheme of the Proposed Binggou Subproject ...... 32 Figure 4- 13 Main Pipelines Layout of the Proposed Binggou Subproject ...... 33 Figure 4- 14 supply and demand balance in water resources of training school and biogas in Binggou subproject area ...... 34 Figure 4- 15 Main Pipelines Layout of the Proposed Wuhudun Subproject ...... 35 Figure 4- 16 Main Pipelines Layout of the Proposed Ma’anshan Subproject ...... 37 Figure 4- 17 Main Irrigation Design Scheme of the Proposed Tongxin Subproject ...... 39 Figure 4- 18 Map of assessment area ...... 41 Figure 4- 19 Map of environmental sensitive receptors (Binggou subproject) ...... 44 Figure 4- 20 Mumin village ...... 45 Figure 4- 21 Han dynasty tomb groups ...... 45 Figure 4- 22 Map of environmental sensitive receptors (Wuhudun subproject) ...... 46 Figure 4- 23 The Great Wall of Ming Dynasty, adjacent to Wuhudun subproject ...... 47 Figure 4- 24 Map of environmental sensitive receptors (Maánshan subproject)...... 48 Figure 4- 25 Hedong Airport (in the west of the proposed Ma’anshan subproject) ...... 49

Figure 5- 1 Landuse status of Yinchuan Municipality and the proposed three new subprojects areas ...... 52 Figure 5- 2 Existing status of the Proposed Binggou Subproject ...... 53 Figure 5- 3 Existing status of the Proposed Wuhudun Subproject ...... 54 Figure 5- 4 Existing status of the Proposed Ma’anshan Subproject ...... 56 Figure 5- 5 Existing status of the Hongsipu Subproject site ...... 57 Figure 5- 6 Existing status of the Tongxin Subproject site ...... 57 Figure 5-7 Elevation status of the proposed three new subprojects areas in Yinchuan Municipality ...... 58 Figure 5-8 Diagram of Average Temperatures and Precipitation in Yinchuan Municipality ...... 59 Figure 5-9 Diagram of Cloudy, Sunny and Precipitation Days in Yinchuan Municipality . 60 Figure 5-10 Diagram of Wind Speed in Yinchuan Municipality ...... 60 Figure 5-11 Diagram of Wind Rose in Yinchuan Municipality ...... 61

Figure 5-12 Surface Water Resources in the proposed three new subprojects areas in Yinchuan Municipality ...... 62 Figure 5-13 Soil status of Yinchuan Municipality and the proposed three new subprojects areas ...... 63 Figure 5- 14 Locations of Six Air Quality Monitoring Stations in Yinchuan ...... 65 Figure 5- 15 Air Quality Status in Yinchuan ...... 67 Figure 5- 16 Locations of Water Quality Monitoring Station (Yellow River) in Yinchuan . 68 Figure 5- 17 Vegetation status of Yinchuan Municipality and the proposed three new subprojects areas ...... 71 Figure 5- 18 Landcover and vegetation status of the proposed Binggou subprojects area ...... 73 Figure 5- 19 Landcover and vegetation status of the proposed Wuhudun subprojects area ...... 74 Figure 5- 20 Landcover and vegetation status of the proposed Ma’anshan subprojects area ...... 74

Figure 8- 1 1st round information disclosure on government website (1 Apr 2017) ...... 95 Figure 8- 1 2nd round information disclosure on government website (17 Apr 2017) ..... 95

Table 2- 1 Implementation Progress and Proposed Changes ...... 3

Table 3- 1 Comparison of PRC and WBG Ambient Air Quality Standards ...... 10 Table 3- 2 Environmental Quality Standards for Noise ...... 11 Table 3- 3 PRC and International Evaluation Standards Adopted for the Proposed Subprojects ...... 13

Table 4- 1 Summary of Project Sites ...... 15 Table 4- 2 Land Use Planning of the Project Area ...... 16 Table 4- 3 Summary of engineering design in the proposed scope changes in Yinchuan Municipality ...... 18 Table 4- 4 Summary of water source and and existing/linked facilities in the proposed scope changes ...... 30 Table 4- 5 List of water supply and drainage of training school and biogas in Binggou subproject area ...... 34 Table 4- 6 The three subprojects area water demand in Yinchuan Muncipality (drip irrigation) ...... 38 Table 4- 7 Assessment Areas ...... 40 Table 4- 8 List of Environmental Sensitive Receptors ...... 43

Table 5- 1 Summary of Project Site Environment ...... 51 Table 5- 2 Urban Air quality monitoring results of Yinchuan Municipality in 2015 ...... 66 Table 5- 3 Yellow River water quality monitoring results at Ying’gu Highway Bridge section in 2015 ...... 69

Table 8- 1 Information of surveyed persons ...... 96 Table 8- 2 Summary of Survey Results ...... 97

Table 10- 1 List of environmental protection investment ...... 101

Chapter I Introduction

1.1 Background

1. ADB approved a loan of $70.0 million for the L2973-PRC: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project (hereafter refer to the Project) on 14 December 2012. The loan was signed on 7 May 2013 and became effective on 27 June 2013. The loan closing date is 31 December 2018. The project’s impact will be improved sustainability of agricultural production in Ningxia. The outcome will be increased quality and value of horticultural crops in Ningxia. The project will have four outputs: (i) improved irrigation systems, (ii) improved vineyards and Chinese date orchards, (iii) increased grape processing capacity, and (iv) strengthened institutional and farmer capacity.

2. Ningxia Autonomous Region Government is the executing agency acting through Ningxia Finance Department (NFD). The PMO established under NFD coordinates day-to-day administrative matters during implementation. Project implementing agencies (PIAs) include Ningxia Agriculture Reclamation Group Cooperation Limited (NARG), Tongxin County Government (TCG), Yanchi County Government (YCG), Hongsipu District Government.

3. The project is classified as Category B for environment by ADB, which is expected to provide environmental benefits including improved irrigation water use efficiency, reduced farmland soil erosion, reduced use of fertilizers and pesticides, reduced sediment runoff to surface water, and adoption of sustainable agricultural techniques. Project risks include low environmental management capacity of the PIAs and lack of environmental staff; temporary and localized adverse impacts on air, water, and acoustic environment during the construction phase; and, expanded use of agricultural chemicals in the operation phase, through the expansion of agricultural lands resulting from the project water savings. There are engineering solutions and best practice methods that have been specified in the environmental management plan (EMP) to ensure that these impacts are avoided where possible and/or minimized.

4. Key environment related documents including: (i) consolidated initial environmental examination (CIEE) which was circulate to ADB in September 2012; (ii) EMP as elaborated in the CIEE; and (iii) project administration manual (PAM). In line with the EMP requirements, environmental specification clauses have been prepared in the civil work contracts.

5. A scope change was initially proposed during the review mission conducted in June 2015 and was confirmed during the special administration mission carried out in July 2016. The proposed change in scope is mainly resulted from cancellation of project activities (i) that have been completed using government funds, and (ii) that will not be implemented according to latest development plans of implementing agencies. The cancellation will result in a reallocation of the loan proceeds in the amount of about $43.0 million, or 61% of the total loan amount. The PIAs provided proposals for the scope change in late November 2016. Five consultants have been fielded on 5 December 2016 to help the EA and PIAs with technical review and prepare required

due diligence covering social (economic/financial, land acquisition, gender, and indigenous people), environment, economic/financial aspects, water, and climate change.

1.2 Methodology and Approach

6. This addendum has been prepared in accordance with ADB‘s SPS (2009), based on domestic TEIAR (tabular environmental impact assessment report) prepared for the three new subproject sites in Yinchuan Municipality in compliance with the PRC‘s environmental assessment regulatory framework supported by site visits, and stakeholder consultations. These studies have been supplemented by additional surveys undertaken by the project loan implementation environmental consultant (Mr. Mingtao Nie) over the period from December 2016 to May 2017. Key data sources included the following: (i) ADB loan mission MOUs in 2015~2016; (ii) Draft project feasibility study reports prepared by qualified domestic feasibility study consultants; (iii) Domestic TEIAR including thematic ecological impact assessment dated April 2017; (iv) Project preparation documents prepared by the other individual consultants, including project water resources and carbon sequestration data. (v) Public consultations: (a) public information disclosure undertaken by the implementing agencies in March 2017 at each project site, and (b) public information disclosure undertaken by domestic EIA consultants in March 2017. (vi) Field inspections at each site between February 2017 and March 2017 by the domestic EIA consultants and December 2016 to May 2017 by the project loan implementation environmental consultant. (vii) Published reports on topographic, geological, groundwater, surface water, soil, climate, flora, fauna, and cultural resources for Yinchuan and the new subproject sites. (viii) Water, air, and noise baseline data provided by the local environmental protection bureaus (EPB, including MEP’s data center website).

7. This report contains (i) the findings from environmental safeguards due diligence, (ii) the proposed environmental monitoring program reflecting the project scope changes; and (iii) summary and conclusions of this additional safeguards due diligence.

Chapter II Proposed Scope Changes

2.1 Implementation Progress and Proposed Scope Changes

8. As of 15 December 2016, the overall project progress is about 43% against 60% of time elapsed. Project activities other than those involved in scope changes have been completed.

9. Project activities that have been completed using government funds include: (i) irrigation system improvements of Yuquanying and Huangyangtan farms, Yuquanying grape nursery, Hongsipu district and Tongxin County; (ii) plantation of Chinese date orchards in Tongxin County; and (iii) grape processing facilities in NARG’s Nuanquan farm.

10. Project activities that will not be implemented according to latest development plans of implementing agencies include: (i) irrigation improvement in Yanchi County; (ii) vineyards establishment in 5 NARG farms (including Yuquanying, Huangyangtan, Nuanquan, Lianhu and Yuquanying nursery); (iii) vineyard rehabilitation in Huangyangtan farm; and (iv) Chinese date orchards in Yanchi County.

11. Activities proposed to be included in the project are: (i) developing water saving and conservation demonstration in three new farms of Yinchuan Municipality; (ii) upgrading 19.7 km of agricultural roads in Hongsipu vineyards; and (iii) establishing 666.7 ha of yellowhorn orchards in Tongxi County. The scope change will consider its impacts of climate change and include adaptation measures as necessary. Upon these changes, Yinchuan Municipality Government will be a project implementing agency while YCG will not be involved in the project anymore.

Table 2- 1 Implementation Progress and Proposed Changes1 Component Implementation Status Proposed Changes Component 1: Improved (1) Yuquanying farm. Irrigation works for (4) and (5): No Change; irrigation system. vineyards rehabilitation have been Construction and installation completed using government funds. (3) and (9): To be of higher efficient irrigation cancelled.The loan amount system, construction of (2) Huangyangtan farm. Irrigation works to be reallocated to support water storage ponds, small for vineyards rehabilitation have been water-saving irrigation in pumps, and on-farm water completed using government funds. Yinchuan project areas distribution pipe networks. (3) Nuanquan farm. No progress. Others: The loan amount to be reallocated to support water-saving irrigation in (4) Lianhu Farm. Irrigation works for Yinchuan project areas vineyards rehabilitation were completed in 2014.

(5) Qukou farm. Completed in 2014.

(6) Yuquanying grape nursery. Completed in 2014 using government funds.

1 For detailed map, please see Figure 1, page II of this addendum.

Component Implementation Status Proposed Changes

(7) Hongsipu district. Irrigation systems were completed in 2014 using government funds.

(8) Tongxin county. Completed in 2013 using government funds.

(9) Yanchi county. No progress. Component 2: Improved vineyards and Chinese date orchards.

Establishment of (1) Huangyangtan farm (296.7 ha): No Farms except to Qukou to 1,257.7 ha of vineyards progress. be cancelled for vineyard at 6 NARG sites. (2) Nuanquan farm (133.3 ha): No establishment. The loan progress. amount to be reallocated to (3) Yuquanying farm (340.0 ha): No support water-saving progress. irrigation in Yinchuan (4) Lianhu Part farm (240.0 ha): No project areas progress. (5) Qukou farm (180 ha). Completed in 2014. (6) Yuquanying Grape Nursery (66.7 ha). No progress.

Rehabilitation of (1) Huangyangtan farm (543.3 ha): No The rest of vineyards 1,343.3 ha of vineyards progress. rehabilitation to be at 3 NARG sites. (2) Yuquanying farm (666.7 ha): 133 ha cancelled. The loan amount completed in 2014. to be reallocated to support (3) Lianhu Part farm (133.3 ha): 156.5 ha water-saving irrigation in completed in 2014. Yinchuan project areas

Establishment of 333.3 Plantation completed in 2014. Access The loan savings to be ha of new vineyards in roads completed in 2013 using reallocated for agricultural Hongsipu District. government funds. roads.

Establishment of 933.3 (1) Tongxin County (666.7 ha): The loan savings to be ha of Chinese date Completed using government funds in reallocated to plant orchards in Tongxin and 2013. yellow-horn. Yanchi. (2) Yanchi County (266.7 ha): No To be cancelled. The loan progress. amount to be reallocated to support water-saving irrigation in Yinchuan project areas Component 3: Increased Grape Processing Capacity.

Establishing about 15,000 (1) Nuanquan Farm (5,000 tons): Loan savings of about to be tons of in-situ grape Completed using government funds. reallocated to support processing capacity and a water-saving irrigation in quality monitoring system at Yinchuan project areas two NARG farms. (2) Yuquanying Farm (10,000 tons): No Change.

Component Implementation Status Proposed Changes Completed.

Component 4: Strengthened institutional and farmer capacity.

(i) Training (5,000 famers). NARG and local forestry bureau conduct An updated capacity training for grape growers and vineyard building program including managers regularly, including water saving a training plan to be made. irrigation fertilizer application, and (ii) Monitoring systems for pesticide management. quality control improving. Monitoring and quality control systems were developed under the previous ADB (iii) Marketing and business project and have been applied in vineyard strategy strengthening. management.

The business plan and marketing strategy (iv) Farmer association had been in place three years ago, but developing and need to be updated and improved to strengthening, including respond to market changes. water uses monitoring by WUAs, soil testing. Farmers associations and WUAs have been well established and play active role (v) Consulting services. in irrigation management and grape growing. However capacity for water use monitoring and soil testing need to be strengthened.

Five individual consultants were fielded in December 2016. Source: Based on ADB loan mission MOU dated December 2016.

2.2 Justification for the Proposed Changes2

12. Component 1: Improved Irrigation Systems. Most of planned irrigation improvement activities have been completed under government irrigated agriculture programs. The output targets have been achieved in terms of the increased irrigation area and water savings. To maximize the loan benefits, the EA proposed to use the loan savings for additional demonstration of water saving irrigation and innovative water conservation technologies. In the meanwhile, activities to be included also aim to increase carbon sequestration and to improve climate change adaptation of the project area. The proposed activities include: (i) water saving irrigation for ecological and protective vegetation works and landscaping at two sites in Bingou amd Wuhudun; and (iii) comprehensive agriculture demonstration in Ma’anshan farm. Yinchuan Municipal Government (YMG) will be the PIA for these activities.

13. Component 2: Improved Vineyards and Chinese date Orchards. NARG will cancel uncompleted establishment and rehabilitation of vineyards. NARG’s total plantation area of vineyards is about 9,000 ha and has exceeded its wine making and

2 Source: ADB loan mission MOU dated December 2016.

storing capacity while the sales have not developed proportionally.3 Moreover, due to the fast growing domestic wineries as well as increasing volume of imported wines, NARG has faced great marketing difficulties and thus will have to limit its making and storing capacity to deal with the changing market.

14. In Hongsipu District, the planned 333.3 ha of vineyards establishment had been completed in 2014 including water-saving irrigation systems. Loan savings about $1.9 million are envisaged because irrigation systems and access roads to the vineyards were funded using government funds. The loan savings will be used to upgrade agricultural roads4 about 19.7 kilometers (km) within the original vineyards established under the project.

15. In Yanchi County, the originally planned Chinese date orchard development (266.7 ha) is to be cancelled because the practices in recent years has proved that Chines dates are not suitable for the local weather and there are no economic viabilities to grow Chinese dates. Yanchi County Government confirmed not to take the loan. The loan savings is proposed to be reallocated to support water-saving irrigation in Yinchuan project areas

16. In Tongxin County, the planned Chinese dates orchards (666.7 ha) had been completed using government funds in 2013. TCG requested to use the loan allocation to develop yellowhorn (Xanthoceras sorbifolia Bunge) orchards with a total area of 666.7 ha to produce high-quality cooking oil, which is considered unique woody oil plants in China 5 . No cooking oil processing plant/facilities will be established under this Project, instead, all the yellow horn will be sold to outside business. The experimental plantation in Tongxin suggested that this crop tree, with high resistance for drought and infertility, is quite suitable for the local weather and soil conditions.

17. Component 3: Increased grape processing capacity. The planned grape processing capacity of 15,000 ton has been achieved while 5,000 ton in NARG’s Nuanquan Farm was funded using government funds. The loan amount about $10.0 million was saved accordingly. The EA decided to reallocate the loan savings to support water-saving demonstration in Yingchuan project areas.

18. Based on the above discussions, proposed activities to be included in the project are: (i) developing water saving and conservation demonstration in three new farms of Yinchuan Municipality; (ii) upgrading 19.7 km of existing agricultural gravel roads in Hongsipu vineyards within the original vineyards established under the project; and (iii) replacing 666.7 ha of Chinese dates with 666.7 ha of yellowhorn orchards in Tongxin County, at same location within same scope as the original IEE dated September 2012. The scope change will also consider its impacts of climate change

3 With the support of ADB Loan 2436 Ningxia Integrated Ecosystem and Agriculture Development Project, NARG established 2,400 ha of vineyards fully installed with water-saving irrigation systems. NARG’s total wine making and storing capacity is 45,000 ton per year, of which 10,000 ton was added by the Loan 2436 and 15,000 ton was added by the ongoing ADB project. The current making and storing capacity can support only 6,000 ha of vineyards (the average yield is about 12 ton/ha). 4 Asphalt pavement is proposed. In the orginal IEE (July 2012, page 9), 40km of minor roads were planned to be unsealed gravel roads designed for purposes of access to the areas of new agriculture. 5 SUN Lu HU Wen-zhong LIU Cheng-hui BAI Xue CHEN Yan-zhu , Research advance of main efficacy components of Xanthoceras sorbifolia Bunge, Science and Technology of Food Industry, 2016, 37(8)

and include adaptation measures as necessary. Upon these changes, Yinchuan Municipality Government will be a project implementing agency while Yanchi County Government will not be involved in the project anymore.6

19. Evalution scope of this addendum. This addendum mainly focuses on the proposed three new subprojects in Yinchuan Municipality (three new farms respectively in Binggou, Wuhudun, and Ma’anshan areas). Due to the minor change status of the above (ii) Hongsipu and (iii)Tongxin subprojects, the two IAs consulted the local EPBs and confirmed no domestic EIA document or approval is required according to PRC’s environmental requirements. The proposed changes will be reviewed at domestic project completion stage as part of domestic completion check and acceptance. Hongsipu subproject road to be upgraded is seated at remote rural area. No any sensitive receptor (such as village, school or surface water body) is located within a radius of 5km adjacent to Hongsipu subprojecct road to be upgraded. At this addendum for these two subprojects (Hongsipu and Tongxin), very brief environmental baselines, assessment areas and sensitive receptors, alternative analysis, environmental impacts and mitigation measures are included. Especially, a brief impact assessment on the asphalt pavement activities is included in the paras. 87 and 89 for Hongsipu subproject. So is the updated EMP (Table A.1, pages 106 and 111). Besides, since only plantation type change is involved in Tongxin subproject, regional water resource and water conservation is analyzed in para. 53.

2.3 Rationales for the Proposed Changes

20. Necessarities of the proposed changes. The proposed subprojects are to strengthen the construction of agricultural infrastructure, develop water-saving oriented characteristic agriculture, improve agricultural production conditions, and advance the level of agricultural science and technology and material and technical equipment. Focusing on water-saving oriented characteristic agriculture, the proposed subprojects will earnestly strengthen the infrastructure construction, and strive to improve the ecological environment of proposed subprojects area. The proposed subprojects will take initiatives to serve the construction of new countryside to vigorously promote the development of modern agriculture and improve the advantages of agricultural facilities, scale, standardization and technological level of production in proposed subprojects area. Relying on scientific and technological progress, the proposed subprojects will effectively strengthen trainings for farmers and promote the application of new varieties, technologies and process to boost agricultural science. The proposed subprojects will both strengthen agricultural infrastructure construction and improve agricultural ecological environment to develop water-saving irrigation agriculture, enhance farmland ecosystem construction, and promote sustainable agricultural development. Therefore, the proposed subprojects are of great significance to improving the conditions of agricultural production and promoting the prosperity of the public.

21. Industrial policy compliance. According to “Catalogue for Guiding Industry Restructuring (2011 Version, amended in 2013)”, ie, the ninth decree issued by National Development and Reform Commission of People’s Republic of China, the

6 As one of four project implementing agencies, Yinchuan Municipality Government was involved in the Loan 2436 Ningxia Integrated Ecosystem and Agriculture Development Project and has shown strong capacity of manage and coordinate an ADB project.

proposed subprojects comply with the requirement of agroforestry encouraged which include item 10: dry-farming and water-saving agriculture, conservation tillage, construction of ecological agriculture and quality of cultivated land, development and application of cultivating technology for new arable land, and item 25: uncultivated area and natural grassland and vegetation restoration project, and item 34: construction of carbon sequestration forest, tree planting and grass growing, forest seedling, and item 38: protection forest, and item 39: project of prevention and treatment of desertification and sand erosion. Therefore, the proposed subprojects are fully in compliance with the national industry policies.

22. Planning compliance. Located in arid zone of central area in Ningxia Hui Autonomous Region, the proposed subprojects aim to ecologically forest protection, conserve and improve water and soil, manage and protect original ecology of desert, and support the construction of characteristic agriculture by drip irrigation system, trace irrigation system and tidal irrigation system. It is in consistent with the requirements of opinions on accelerating the development of eco-environment construction in arid zone and grass and livestock industry, opinions on accelerating the development in arid zone of central area, Planning and Guidelines on Water Saving-oriented Social Construction in Ningxia (2004—2020). The planning and design of the proposed subprojects meet the requirements.

Figure 2- 1 Yinchuan Urban Masterplan (2011~2020) the three subprojects belong to Class III development axis Source: Yinchuan planning bureau website

Chapter III Legal and Administrative Framework

3.1 Evaluation Standards

23. In the PRC, ambient conditions of air, noise, and water quality in the project area determine the appropriate category of emissions and effluent standards for the construction and operational phases of built infrastructure. The World Bank Group (WBG) Environmental Health and Safety (EHS) guidelines7 (see below) are based on international best practice construction and operational procedures. Both the PRC standards and EHS guidelines are used in the assessments.

24. Air Quality. The PRC ranks air quality into two classes according to its Ambient Air Quality Standard (GB 3095-2012). Class I standard applies to nature reserves, scenic areas, and regions requiring special protection. Class II standard applies to residential areas, mixed residential/commercial areas, cultural areas, industrial zones, and rural areas. The ambient air quality in the assessment area of this project has been assigned to meet GB 3095-2012 Class II standards. The WBG adopted the World Health Organization (WHO) standards for its EHS standards for air quality.

25. The WHO established air quality guideline (AQG) standards for various air quality parameters for the protection of public health. Yet recognizing that progressive actions are needed to achieve these standards and the financial and technological limitations of some countries, cities or localities especially in developing countries, the WHO also established interim targets as intermediate milestones towards achieving the AQG. Comparing PRC’s GB 3095–2012 Ambient Air Quality Standards and the World Bank Group’s EHS standard which has adopted the WHO AQG, the longer averaging period such as 1 year is more applicable to assessing impacts from multiple as well as regional sources; while shorter averaging periods such as 24 hours and 1 hour are more applicable to assessing short-term impacts from project-related activities, such as from peak hour traffic or daily or peak construction activities.

Table 3- 1 Comparison of PRC and WBG Ambient Air Quality Standards WHO/World Bank Group EHS8 Air PRC GB 3095-2012 (μg/m3) Averaging (μg/m3) Quality Period Parameter Class I Class II Interim Targets AQG 1-year 20 60 n/a n/a SO2 24-hour 50 150 50 - 125 20 1-hour 150 500 n/a n/a 1-year 80 200 n/a n/a TSP 24-hour 120 300 n/a n/a 1-year 40 70 30 - 70 20 PM10 24-hour 50 150 75 - 150 50 1-year 15 35 15 - 35 10 PM2.5 24-hr 35 75 37.5 - 75 25 1-year 40 40 n/a 40 NO2 24-hour 80 80 n/a n/a 1-hour 200 200 n/a 200

7 World Bank Group. 2007. Environmental, health and safety guidelines-General EHS guidelines. Washington, DC 8 World Bank Group 2007, ibid.

WHO/World Bank Group EHS8 Air PRC GB 3095-2012 (μg/m3) Averaging (μg/m3) Quality Period Parameter Class I Class II Interim Targets AQG 24-hour 4,000 4,000 n/a n/a CO 1-hour 10,000 10,000 n/a n/a Note: n/a = not available

The following observations are made comparing PRC and WBG ambient air quality standards as shown in the table above, showing that WBG interim targets are comparable to PRC’s GB 3095–2012 Class II standards:

3 (i) 24-hr SO2: upper limit of EHS interim target (125 μg/m ) is more stringent than GB Class II standard (150 μg/m3); 3 (ii) 24-hour PM10: the upper limit of the EHS interim target (125 μg/m ) is the same as GB Class II standard; 3 (iii) 24-hr PM2.5: the upper limit of the EHS interim target (75 μg/m ) is the same as GB Class II standard; and 3 (iv) 24-hour NO2: the EHS AQG (200 μg/m ) is the same as GB Class II standard.

26. Emission standards of fugitive particulate matter (such as dust) from construction sites are regulated under the PRC’s Air Pollutant Integrated Emission Standard (GB 16297–1996). For particulate matter, the maximum allowable emission concentration is 120 mg/m3 and the concentration limit at the boundary of construction sites is ≤ 1.0 mg/m3, with no specification on the particulate matter’s particle diameter.

27. Noise. GB 3096–2008 categorizes five functional areas based on their tolerance to noise pollution: from Category 0 to Category 4. Category 0 is for areas with convalescent facilities that are the least tolerant to noisy environment and therefore has the most stringent day and night time noise standards. Category 1 is for areas predominated by residential areas, hospitals and clinics, educational institutions, and research centers. Category 2 is for areas with mixed residential and commercial functions. Category 3 is for areas with industrial production and storage and logistics functions. Category 4 is for regions adjacent to traffic noise sources such as major roads and railways, and is subdivided into 4a and 4b with the former applicable to major road (road class II and above) and marine traffic noise, and the latter applicable to rail noise.

28. Standards for various functional area categories are compared with the WBG’s EHS guidelines, showing that the EHS guidelines have lower noise limits for residential, commercial, and industrial mixed areas but higher noise limits for industrial areas. The EHS guidelines do not have separate noise limits for major roads but apply the same noise limits based on whether the areas are for residential or industrial use.

Table 3- 2 Environmental Quality Standards for Noise [LAeq: dB(A)] GB 3096-2008 WBG EHS9 Noise Standards Standards Functional Applicable Area Night Day Night Area Day 22:00-06: 07:00-22 22:00-07: Category 06:00-22:00 00 :00 00

9 World Bank Group 2007, ibid.

Areas needing extreme quiet, such as 0 50 40 convalescence areas Areas mainly for residence, hospitals, cultural 1 and educational institutions, administration 55 45 55 45 offices Residential, commercial and industrial mixed 2 60 50 areas 3 Industrial areas, warehouses and logistic parks 65 55 70 70 Area within 35 m on both sides of trunk road 4a 70 55 55 45 (class II and above)

29. The PRC’s Emission Standard of Environmental Noise for Boundary of Construction Site (GB 12523–2011) regulates construction noise, limiting construction noise levels at the construction site boundary to 70 dB(A) in the day time (0600–2200 hours) and 55 dB(A) at night (2200–0600 hours). The WBG does not have standards for construction noise per se, but applies the same noise standards listed in Table 5 above to the receptors during construction activities.

30. Surface Water Quality. For water quality assessment, the determining standard is the PRC’s Environmental Quality Standards for Surface Water (GB 3838–2002) (Table II.5). It defines five water quality categories for different environmental functions. Category I is the best, suitable for head waters and national nature reserves. Category II is suitable for drinking water sources in Class I protection areas, habitats for rare aquatic organisms, breeding grounds for fish and crustaceans, and feeding grounds for fish fry. Category III is suitable for drinking water sources in Class II protection areas, wintering grounds for fish and crustaceans, migration routes, water bodies for aquaculture and capture fishery, and swimming activities. Category IV is suitable for general industrial use and non-contact recreational activities. Category V is the worst which is only suitable for agricultural and scenic water uses.

31. Discharge of wastewater from construction sites is regulated under the PRC’s Integrated Wastewater Discharge Standard (GB 8978–1996) (Table II.6). Class 1 standard applies to discharge into Category III water bodies under GB 3838–2002. Class 2 standard applies to discharge into categories IV and V water bodies. Class 3 standard applies to discharge into municipal sewers going to municipal wastewater treatment plants (WWTPs) with secondary treatment. No new discharge of wastewater into Categories I and II water bodies is allowed. The WBG does not have ambient water quality standard, and recognizes the use of national and local ambient water quality criteria for EHS purpose.

32. The primary applicable local regulations and plans include (i) Ningxia Hui Autonomous Region Environmental Protection Ordinance, January 2010 (ii) Ningxia Hui Autonomous Region Environmental Education Ordinance, Decemeber 2011 (iii) Ningxia Hui Autonomous Region Pollution Control Ordinance,Septemeber 2014 (iv) Ningxia Hui Autonomous Region Hazardous Waste Regulations, February 2011 (v) PRC Cultural Relics Protection Law,2002 (vi) PRC Regulations on the protection of the Great Wall,2006

(vii) Notice of Promulgating protection scope of the early Great Wall in Ningxia Ningxia Hui Autonomous Region, September 2016 (viii) Yinchuan Urban Masterplanning (2011~2020) (ix) Ningxia Hui Autonomous Region Spatial Stragegic Planning, 2015 (x) Ningxia Hui Autonomous Region Major Function Area Planning, 2014 (xi) Decision on strengthening ecological protection on both sides of the Yinchuan section of the Yellow River, 2013 (xii) Yinchuan environmental noise pollution prevention and control regulations (xiii) Construction Project Environmental Protection Measures for the Administration Ningxia Hui Autonomous Region, 2006 (xiv) Ningxia Hui Autonomous Region of pesticide management practices, Ningxia Hui Autonomous Region People’s Government Order (No. 14) and the Autonomous Region People’s Government Order (No. 89), "Ningxia Hui Autonomous Region People’s Government on revising the "Ningxia Hui Autonomous Region of pesticide management practices" and other regulations 5 decision (March 1, 2006) (xv) Ningxia Program for water-saving society

33. Evaluation Standards for the proposed subprojects. The following PRC evaluation standards in the domestic TEIAR in accordance with the requirements set forth by the Ningxia Department of Environmental Protection and international evaluation standards were adopted for the proposed subprojects .

Table 3- 3 PRC and International Evaluation Standards Adopted for the Proposed Subprojects Ambient Ambient air: Class II standard of the Ambient Air Quality Standard (GB 3095-2012); environmental WHO/WB Interim Targets and AQG; standards Soil: Class 2 standards of the Environmental quality standard for soils (GB15618-1995),

Emission 1. Applicable noise standards: US EPA and GB12523-2011 Emission Standard of standards for Environmental Noise for Boundary of Construction Site; pollutants Day Leq Night Leq International Comparison dB(A) dB(A) Standards Leq dB(A) PRC standards meet or US EPA: 85 (day, 8 70 55 exceed international hour exposure) standards

The proposed subprojects activities will not result in a maximum increase in background levels of 3 dB at the nearest receptor location off-site as WHO/WB EHS guideline stipulated.

2. Exhaust emission standards: Table 2-Class II standard of Atmospheric Pollutants Emission Standards" (GB 16297-1996).

Maximum allowable emission concentration: Particulate matter (PM): 120 mg/m3 Limits for fugitive emission: PM: ≤1.0 mg/m3 at construction site boundary

3. Wastewater strandards: GB8978-1996 Integrated Wastewater Discharge Standard Source: based on the domestic TEIAR, by the LIEC

3.2 Domestic Approval Status of the Proposed Scope Changes

34. Due to the minor change status, in accordance with the requirements in the Directory for the Management of Construction Project Environmental Impact Assessment Categorization (MEP Decree [2015] No. 33), a domestic TEIAR on the newly proposed Binggou, Wuhudun, and Ma’anshan subprojects in Yinchuan Municipality was prepared by the Zhongwei City Zhongwangda Environmental Technology Company Limited, on behalf of the Ningxia Finance Department (NFD), the project executing agency; and was submitted to the Yinchuan Municipality Government Review and Approval (Department of Environmental Protection) in April 2017. The domestic TEIAR provided the basis for this addendum. The domestic TEIAR was approved by Yinchuan Municipality Department of Review and Approval (Department of Environmental Protection) on 17 April 2017 (see Appendix B).

Chapter IV Descriptions of the Proposed Scope Changes

4.1 General descriptions

35. The proposed three new subprojects are located in Yinchuan Municipality, the east coast of the Yellow River and Binghe New District, Yinchuan Hedong Airport on the eastern side. Besides, upgrading 19.7 km of existing agricultural gravel roads in Hongsipu vineyards are located within the original vineyards established under the project; and replacing 666.7 ha of Chinese dates with 666.7 ha of yellowhorn orchards in Tongxin County is at same location within same scope as the original IEE dated September 2012.

Table 4- 1 Summary of Project Sites Site Subproject Total Site Area Site Coordinates (ha) Binggou Binggou eco-agricultural 633 E106°34′3″~106°36′27″ / water-saving and N38°23′14″~38°25′58″ comprehensive demonstration Wuhudun Wuhudun water-saving 30 E106°27′17″~106°28′8″ / irrigation demonstration N38°19′37″~38°21′15″ Ma’anshan Ma’anshan characteristic 143 E106°22′45″~106°24′24″ / Agricultural demonstration N38°09′ zone Hongsipu Upgrading 19.7 km of within the E106°02′ / N37°12′ existing agricultural gravel original roads vineyards established under the project Tongxin 666.7 ha of yellowhorn same location E105°17' / N36°34' orchards as original Chinese dates orchards Source: based on the domestic TEIAR, by the LIEC

36. Located in the northeast of Binghe New District and south side of Binggou, Binggou eco-agricultural water-saving and comprehensive demonstration subproject with boundary by Binggou in north stretches its border to Ningxia and Mongolia in the east and is adjacent to new provincial road 203 in west and south. It is between the northern latitude 38°23′14″~38°25′58″ and east longitude 106°34′3″~106°36′27″ with total coverage of 633ha. The main outputs include: through water-saving irrigation technology such as drip, trace and tidal, 60 demonstration units of greenhouses for desert green fruits and vegetables planting, 61ha of desert original ecological protection and treatment, 192ha of shelterbelt building, 133ha of soil improvement and conservation of water and soil, comprehensive management system establishment in the park, biogas and organic fertilizer processing plant, and the construction of industrial farmer field schools and supporting infrastructure facilities etc.

37. East by Great Wall of the Ming Dynasty, south of Yingheng Highway, west to Wuhudun road, north with Changhe Avenue, Wuhudun water-saving irrigation demonstration subproject is located in the east side of Binghe New District and at the foot of Great Wall of the Ming Dynasty. It is between the northern latitude

38°19′37″~38°21′15″and east longitude 106°27′17″~106°28′8″with total coverage of 30ha. The main outputs include: 133ha of water-saving irrigation pipe network, 27ha of ecological shelterbelt, 30,550m2 of operation road.

38. Ma’anshan characteristic agricultural demonstration zone subproject is located in Ma’anshan in Hedong airport and distributed along with two sides of Dongren Road, north from Matigou in Ma’anshan, south to Tianchigou, west by Baiyou Road in Hedong airport and east to Dongren Road, It is between the northern latitude 38°16′47″~38°18′43″and east longitude 106°22′45″~106°24′24″with total coverage of 143ha. The main outputs include: 133ha of water-saving irrigation pipe network, 33ha of ecological economic forest, 33ha of ecological shelterbelt, 33ha of special seedling cultivation, 33ha of alfalfa planting, 20 greenhouse units of seedlings, 20 km of operation road, 60,000m2 of ecological breeding demonstration park， surpporting infrastructure facilities such as impounding reservoir, pump house, training center for farmers, electric transmission line etc..

39. The below table shows the land use planning of the three new subprojects in Yinchuan Municipality. Table 4- 2 Land Use Planning of the Project Area Unit: ha

Binggou Wuhudun Ma’anshan eco-agricultural water-saving characteristic water-saving and irrigation agricultural Subproject comprehensive demonstration demonstration zone demonstration Land area

Reservoirs and pump stations 10

Agricultural cultivation 16

Ecological protection and treatment 61

Ecological protection (economy) forest 192 27 67 Characteristicnursery stock cultivation base 33

Soil improvement and soil and water conservation (Alfalfa, Caragana 133 33 cultivation)

Land consolidation 209

Work roads 11 3 3

Eco-aquiculture area 6

Drip irrigation system * 281 133 133

Total 633 30 143

Note: * drip irrigation system is not included within the land area Source: based on the domestic TEIAR

40. Total budget and environmental investment estimates. The total budget for the proposed three new subprojects in Yinchuan is CNY 382,128,400, of which RMB 253,319,400 yuan is for Binggou subproject, RMB 16,031,400 yuan for Wuhudun subproject and RMB 50,138,600 yuan for Ma’anshan subproject, RMB 1,366,000 yuan for capacity building, RMB 17,560,008 yuan for management and maintenance of seedling cultivation, RMB 25,510,570 yuan for miscellaneous expenditure and RMB 18,196,600 yuan for contingency. The investment of environmental protection is RMB 64,152,100 yuan, accounting for 16.79% of total investment. The environmental protection investment is mainly used for the management of dust and noise, ecological protection, biogas, etc. The total budgets for the proposed rural road upgrading in Hongsipu District and replacement of yellowhorn orchards in Tongxin County are CNY 0.42 million and CNY 66.90million respectively.

4.2 Summary of engineering design in the proposed scope changes

41. . The below table shows engineering design in the proposed scope changes.

Table 4- 3 Summary of engineering design in the proposed scope changes in Yinchuan Municipality

(Each proposed subproject water supply, diversion and respective/cumulative impacts please see the following Chapte 4.3)

Category Subproject Main contents and scale

Intelligent and Water supply engineering: two units of impounding reservoir (extracting water from Yellow River) with 100,000 m 3; efficient procurement of 2 sets of inhabiting-water surface evaporators , 1 pump house establishment on each side of water-saving impounding reservoir with 500m2. irrigation system with integration of Field water-saving irrigation systems: application of drip irrigation system with operation coverage 4,222 Mu, trace water and irrigation system with operation coverage 873 Mu, and tidal irrigation system with operation coverage 56 MuThe fertilizer automatic control has been adopted during the field irrigation to realize efficient and precise water-saving irrigation.t

Demonstration park for desertec green fruits and 40 units of newly built intelligent solar greenhouse, 20 units of intelligent cold tent, 1 unit of refrigerated fresh-keeping vegetables storehouse with total coverage of 2500m2. planting

Protection and control 538 Mu of desertificated land for xanthocreras sorbifolia and hedysarum scoparium cultivation which is sand-binding demonstration and drought enduring; 373 Mu of cultivated container-grown seedling which is drought-enduring, water-saving and Binggou area for desert eye-catching. eco-agricultural original ecology Main project water -saving and comprehensive Protection demonstration system of 134 hectares (2,010 Mu) of outside ecological protection forest, 58 hectares (873 Mu) of road ecological protection ecological park forest.

Soil improvement and soil and 800 mu of alfalfa planting, alfalfa planting area with a pointer-type sprinkler. 1200 mu of Caragana planting by water replanting. conservation

600m 3 (10 Mu) of biogas project construction, the main buildings are 132m 2 of the management room, 450m 2 of Biogas organic fertilizer processing plant.

Industrial Farmer Field School 1 unit of field demonstration center with 1400m 2;

Integrated Management Construction of a comprehensive management system; System

Category Subproject Main contents and scale

infrastructure 3,142 mu of land area, 930m 2 of supporting production management space, 1200m 2 of warehouse construction ; facilities construction 72,000m 2of asphalt road construction; 37400 m 2 of gravel road.

Water-saving irrigation demonstration area of 454 mu, including 2,000 mu saving irrigation pipe network, 408 mu of ecological protection forest, road work 30550m 2. Wuhudun Subproject Area 454 Mu of water-saving irrigation demonstration area, including 2,000 Mu of water-saving irrigation pipe network， 400 Mu of ecological protection forest and 30,550m2 of operation road.

Construction of a reservoir of, supporting the construction of), build water diversion channel 2000, installation saving irrigation facilities; in Zhou Bian flood pool and impermeable lining to carry out the construction and installation of safety barriers, build bridges and culverts flood the north side of a pool, built lookout platform 200m 2; cisterns edge build roads 4.55km. 2km to set up transmission lines, supporting the installation of 200KVA transformer Taiwan. Water Saving 1 unit of impounding reservoir (extracting water from Yellow River) with 100,000 m 3storage capacity, 80m 2 of Irrigation pumping stations (including pumps), 2,000 units of water-saving diversion trench, 133.4 hectares (2000 mu) of water saving irrigation facilities, bricks building and seepage-proofing should be ensured around the flood discharge pool with guard railing installation. 1 unit of bridge and culvert and 200m2 of lookout tower will be built in the north of the pool. 4.55 km of main road will be built near the impounding reservoir. 2 km of electric transmission line with transformer of 200KVA will be set up.

160 ,000 m 3 of backfill; Construction of a lookout platform with 200m 2; Ma’anshan subproject area 33.35 hectares (500 mu) of ecological economic zone building, the main tree species including mulberry, peach, pear, plum, apricot, jujube, apple trees and other local varieties; Build 33.35 hectares (500 mu) of ecological economic zonethe main tree species including arborvitae, cypress, pine, Pinus sylvestris, populus hopeiensis;, weeping willow, Salix, Elaeagnus, cotton wood, mountain peach, apricot, Characteristic agriculture yellow Rosa, etc. suitable tree, flower bush; 33.35 hectares (500 mu) of featured seedling cultivation base building , mainly cultivating red sun plum, crabapple, Lagenaria, Ruby Begonia, Begonia snowball, Red Prince Weigela, American plum, rose and other varieties of seedlings with local species; 33.35 hectares (500 mu) of alfalfa planting 20 units of nursery greenhouse, 20km of production operations Road, five toilets with a total area of 400m2, 6 hectares of ecological farming demonstration area, purchase of 1,000 cattle, 2,500 sheep, 10,000 chickens.

The water source of Binggou subproject area is from Yellow River which is through pump station built by Management Committee of Binghe New District and is distributed by water pipe to 3 newly built impounding reservoir Utilities Water supply with 100,000 m3 storage capacity. Wuhudun subproject area provides water through built Hongdaogou reservoir with 120,000 m 3 annual storage

Category Subproject Main contents and scale

capacity. The water source of Ma’anshan subproject is from Yellow River which is used to carry out the water-saving irrigation in the project area.

The water metering systems for these water supply/irrigation facilities to help in monitoring water use are included in the above. The subproject will install water meters to measure all water entering all the subprojets’ production processes at all sites from all sources (pipelines, wells and local reservoirs) and report water consumption quarterly.

The wastewater produced by the farmer filed training school and biogas project will be processed through fermentation system, and biogas, slurry, manure and residue will be comprehensively utilized without discharging. Drainage The integration system of water and fertilizer set up in Ma’anshan project area will conduct the waste treatment from aquiculture area without discharging.

The water and electricity network of rural areas in Ningxia has been fully covered and the existing facilities for water and electricity can completely meet the project needs. Power supply The implementation of water-saving project is newly added workload, and most of the workload can be finished by power equipment with little consumption of water and electricity. The existing network of water and electricity can fully meet the project needs.

The heating in farmer training school is provided by biogas boiler system. Heating supply The production heating is provided by solar panel and biogas boiler system. The specifications of solar panel is Φ58 × 1.8 × 50. The solar heating is insufficient because of the low temperature. To make sure the normal mesophilic digestion （35~38 ）, a biogas boiler with 1t / h will be needed to provide heating together with solar panel.

Dust During the construction℃ period, the measures such as sprinkling, road hardening and straw covering will be taken. Construction Period During the construction period, the measures such as the application of low noise equipment, no honking and Noise reasonable arrangement for machinery operation location will be taken.

Biogas project (12,000 tons of annual waste treatment

Environmen Desert original ecological protection and management (911 mu); tal Engineering Binggou subproject area Ecological protection forest (2883 mu);

Soil improvement and soil and waterconservation (2000 mu);

Preparation of land (3142 mu).

Wuhudun subproject area Ecological afforestation project (408 mu).

Category Subproject Main contents and scale

Preparation of land (1,000 mu);

Ma’anshan subproject area Eco-Green Project (2000 mu);

Integration of water and fertilizer equipment(3 sets).

Environmental supervision Carry out environmental supervision during construction period.

Source: based on the domestic TEIAR

Figure 4- 1 Layout of the Proposed Binggou Subproject Source: based on the domestic TEIAR

Figure 4- 2 Sample Landscaping Design Scheme of the Proposed Binggou Subproject Source: based on the domestic FSR

Figure 4- 3 Layout of the Proposed Wuhudun Subproject Source: based on the domestic TEIAR

Figure 4- 4 Sample Landscaping Design Scheme of the Proposed Wuhudun Subproject Source: based on the domestic FSR

Figure 4- 5 Layout of the Proposed Ma’anshan Subproject Source: based on the domestic TEIAR

Figure 4- 6 Sample Shelterbelts Design Scheme of the Proposed Ma’anshan Subproject Source: based on the domestic FSR, by the LIEC

Figure 4- 7 Sample Nersury and Ecological Forest Design Scheme of the Proposed Ma’anshan Subproject Source: based on the domestic FSR 27

Figure 4- 8 Other good samples nearby Ma’anshan Subproject area

Domestic funded water storage pool

Monumment for ecological forest plantation

Slope protection and irrigation system Source: by the LIEC

42. In Hongsipu District, it is proposed to upgrade agricultural roads10 about 19.7 kilometers (km) within the original vineyards established under the project.

Figure 4- 9 Layout of Hongsipu Subproject area

43. In Tongxin County, the planned Chinese dates orchards (666.7 ha) had been completed using government funds in 2013 elsewhere. TCG requested to use the loan allocation to develop yellowhorn orchards with a total area of 666.7 ha, at same location within same scope as the original IEE dated September 2012.

Figure 4-10 Layout of Tongxin subproject area

10 Asphalt pavement is proposed. In the orginal IEE (July 2012, page 9), 40km of minor roads were planned to be unsealed gravel roads designed for purposes of access to the areas of new agriculture. 29

Figure 4- 11 Good afforestation sample for Tongxin subproject area

4.3 Regional water resource analysis and linked/existing facilities in the proposed scope changes

Table 4- 4 Summary of water source and and existing/linked facilities in the proposed scope changes Site Subproject Water Linked/existing facilities source/diversion and impacts Binggou Binggou eco-agricultural Yellow River-> underground pipelines built-> two new water-saving and reservoirs proposed under this project comprehensive Water safety is ensured. For detailed impacts demonstration assessment please see the below paras.45~48 and para. 52.

Wuhudun Wuhudun water-saving upstream various channels-> upstream Hongganggou irrigation demonstration reservoir-> water supply pipelines-this subproject site Water safety is ensured. For detailed impacts assessment please see the below para. 49 and para. 52.

Ma’ansha Ma’anshan Yellow River->pump stations-> new reservoir proposed n characteristic under this project Agricultural Water safety is ensured. For detailed impacts demonstration zone assessment please see the below paras.50~ 52.

Hongsipu Upgrading 19.7 km of Not relevant for water within the original vineyards existing agricultural demand analysis established under the project gravel roads Tongxin 666.7 ha of yellowhorn Guhaikuoguan 6th channel- pump stations-> water orchards supply pipelines-this subproject site Water safety is ensured. For detailed impacts assessment please see the below para. 53.

44. The subproject areas’ selection is based on where the water use quota of Yellow River has been obtained. The proposed subproject areas are located in the arid zone of central Ningxia, where the average annual rainfall is less than 250mm, while the annual evaporation is above 2,000 mm, much higher than rainfall. As a result, the overall water resources in the areas are seriously inadequate, and water is extremely uneven.Therefore, the water balance analysis can only be targeted at the new subproject areas, because its water will be only from the Yellow River, and the water use quotas of the Yellow River have been approved by the Yellow River Conservancy Commission (YRCC) to help local people out of poverty. Water diversion of the subproject areas is divided into two types: (i) Binggou, Ma'anshan and Tongxin subproject areas will pump Yellow River water through the government-built reservoirs and pipelines. Tongxin subproject area in particularly will use 12-cascade pumping engineering to raise the Yellow River water head by hundreds of meters to irrigate the farmland through channel/ditch distribution. And (ii) Wuhudun subproject area has been built with Hongduogou reservoir as water supply source, and will be irrigated through pump extraction and pipeline distribution. The impact of these engineering measures on the environment has been assessed. For details please see the Annex 2.A detailed analysis of the water resources balance in the proposed subproject areas please see the Appendix C.

45. Water consumption demand of Binggou subproject area. The annual water demand of Binggou subproject is 1,076,668 m3, mainly including:  32 greenhouses will be built, for annual cultivation of fruit and vegetable with 2 seasons, so will yield 20 tons. Every year, each ton consumes about 1,000 m3 water, so the total amount of water consumption will be 20,000 m3;  20 sets of cold shed will be built to cultivate seedlings or plant fruit trees. Each cold shed will consume 2,600 m3 water each year, at a total of 52,000 m3/a;  1 biogas subcomponent will be built at 600 m3 gas production scale, the annual water demand for premixed and anaerobic fermentation will be about 50,000 m3(for more details please see the below para. 48);  To cultivate 21.3ha of water-saving and drought-resistant plants by use of sprinkler irrigation: the annual water consumption is 9,000 m3 per ha, so the total of water consumption will be 192,000 m3;  To plant 53.3ha of alfalfa by use of sprinkler irrigation; the annual water consumption is 12,000m3 per ha, so the total of water consumption will be 640,000 m3;  To plant 80ha of caragana by use of micro-jet irrigation; water consumption is 1,500 m3 per ha per year, so the total of water consumption will be 120,000 m3;  1,667.6m3 for farmer field training school (for details please see the below para. 48). Based on above, the Binggou subproject area will need a total of 1,076,668 31

m3 water.New water use quota is no needed. Local water-saving can fully meet the irrigation needs of the Binggou subproject and it both provides reliable water source and create water conditions for new added ecological landscaping in Binghe New District (see below para. 52)

46. Water source of Binggou subproject. The planned subproject land area is 633ha. Yellow River is the regional overland runoff with some indirect channels such as Shuidonggou, Binggou etc.. The Class I terrace of Yellow River is quatemary pore-phreatic water with 10~20m depth. This underground water quality is inferior and cannot be utilized in domestic water and agricultural irrigation. The pore water of loose rock in Erdos tableland area is deep (180~250m) with inferior water quality and ≥3g / L of salinity, which is hardly to be applied.

47. The water of Binggou subproject area will be extracted from the Yellow River through the underground pipelines built by the Binghe New District Management Committee who allocates 13.80 million m3 quotas for ecological and landscaping water in whole Binghe New District. The water is lifted to two new reservoirs of 10,000 m3 each through water pipelines.

Figure 4- 12 Sample Water-saving Irrigation Design Scheme of the Proposed Binggou Subproject Source: based on the domestic FSR

Figure 4- 13 Main Pipelines Layout of the Proposed Binggou Subproject Source: based on the domestic FSR

48. Among the domestic water demand ,the Binggou farmer field training school has a year training trips of 1000 people, and the per capita water quota is 120L, the annual water consumption is 120m3/a. The biogas project labor force is of 3 people, the per capita water consumption quota is 80L, and the water consumption is 87.6m3/a. The biogas boiler water should adopt softening water, and needs oxygen. Therefore, the boiler room is equipped with water softening equipment. The water consumption of the equipment is 4m3/d (1,460m3/a). This wastewater of this subproject will be from softening, boilers, biogas dehydration and domestic usage. The boiler sewage generated is 0.2m3/d (73m3/a), the salt 33

water amount generated from the softening device is 0.6m3/d (219m3/a), these water are collected for plant paved road watersprinkling for dust suppression. Small amounts of runoff will be collected by the drainage system along plant roads with no discharge outside. The wastewater quantity generated from the dehydration process is 1.0m3/d (365m3/a), these water will be drained by the network into septic tank. The volume of sewage generated can be calculated by 80% of the total water consumption, and the sewage water amount is 166m3/a, these water can be piped into septic tank through drainage pipe for biogas fermentation system processing. All sewage/wastewater are expected to processed onsite.

Table 4- 5 List of water supply and drainage of training school and biogas in Binggou subproject area

Water consumption Drainage No. Item Note (m3/a) amount(m3/a)

1 Boiler 1,460 292

Biogas 2 dehydration 365 proces

the calculation of training school is in accordance with 120L / person .d 3 Domestic 207.6 166 meter, gas meter in accordance with project staff • d 80L / person

Total 1,667.6 823

Note: Boiler includes boiler sewerage and brine generated by water-softening devices

From raw Dehydration material 365 wastewater

17.6 365

207.6 166 166 Domestic water Domestic sewage Septic tank 1667.6 531

1460 Water-softening device 1168 Biogas use Boiler water fermentation 73 Water sprinkling 219 292 Collecting and dust basin suppression

Figure 4- 14 supply and demand balance in water resources of training school and biogas in Binggou subproject area (Unit：m3/a) Source: based on the domestic TEIAR

49. Wuhudun subproject area provides water through a built reservoir with 120,000 m 3 annual storage capacity. The annual water demand of Wuhudun subproject is 108,000 m3. According to water resource balance analysis report prepared by the water resource specialist in October 2017, this proposed subproject has a small area. The water source will be the upstream Hongganggou reservoir. The reservoir has a perennial storage capacity of 120,000 m3, and the upstream various channels pass to the reservoir every year. Through consultation, the water demand is secured by water supply pipelines.

Figure 4- 15 Main Pipelines Layout of the Proposed Wuhudun Subproject Source: based on the domestic FSR

50. Water consumption demand of Ma’anshan characteristic agricultural demonstration zone subproject. Irrigation water will be decided according to the relevant provisions such as "Irrigation And Drainage Engineering Design Specifications" (GB50288-99), "Low-Pressure Pipeline Irrigation Of Farmland Technical Specifications" (GB / T20203-2006), combined with the subproject area location, hydrological and meteorological, soil and water resources , composition 35

of crop irrigation, irrigation technology and scale and other specific circumstances. As for the livestock breeding, Ma'anshan characteristic agricultural demonstration zone includes an ecological farming demonstration area (see Table 4-3 above) covering an area 6hm2, with 1,000 cattle, 2,500 sheep, 10,000 chickens. The water use in the ecological farming demonstration area is mainly for the animal drinking water, without washing water for animal houses. The waste produced by animals will be cleaned up by the integrated devices of water and fertilizer. The annual water demand of Ma’anshan subproject is about 85,420 m3, including 34,320 m3 for irrigation and 51,100m3 for livestock11.

51. The water source of Ma’anshan subproject is from Yellow River which is used to carry out the water-saving irrigation in the subproject area. The existing three reservoirs have total storage capacity of more than 300,000 m3, mainly supplied to the Ma'anshan subproject area’s existing forest land. For the newly proposed subproject, it will only need to build additional reservoir, without adding new water quota.According to water resource balance analysis report prepared by the water resource specialist in October 2017, the proposed subproject area terrain is in relief, with high and deep slopes, where the soil is rich in gravel, prone to seriously leaking water and fertilizer, therefore, the water supply needs to be emphasized and carefully designed.

11 Ma'anshan subproject area ecological farming will involve only 1,000 cattle, 2,500 sheep, 10,000 chickens. The livestock breeding is small scale, and its annual consumption of drinking water will be increased by only 51,100m3. So the water consumption will be not much increased, and the subproject area 's new reservoir can meet the animal husbandry water demand. Livestock feces will be cleaned up all by artificial and forklift , rather than water flushing, Livestock waste disposal will not need additional water consumption. 36

Figure 4- 16 Main Pipelines Layout of the Proposed Ma’anshan Subproject Source: based on the domestic FSR

52. Analysis on supply and demand balance in water resources of all the proposed three subprojects in Yinchuan. By 2016, the total ecological and landscape coverage is 35,400 mu in Binghe New District which carried out irrigation before 2014 by furrow irrigation and bunch irrigation with 390 m3/ mu annually and 13,800,000 m3 of annual water quota allocation. Since 2014, the annual water consumption per mu is reduced from 390m3/mu to 280 m3/mu with 3,894,000 m3 of annual water-saving after replacement of original irrigation into drip and spray irrigation in Binghe New District. According to water resource balance analysis report prepared by the water resource specialist in October 2017, as the Yellow River Alongside Belt in Ningxia is included in the national development strategy planning, the corresponding resource development and utilization complies with national policy, so the subproject area water resources is promising to meet the subproject development needs of water-saving ecological agriculture and forestry. The annual water demand for the proposed three subprojects in Yinchuan is 1,270,088 m³ in total. The aforementioned water resources that have been conserved in Binhe New District (3,894,000 m3) can satisfy the irrigation water demand of this project. This not only provides reliable water resources for this subproject, but also supplies water for new ecological greenbelt in Binhe New 37

Area.

Table 4- 6 The three subprojects area water demand in Yinchuan Muncipality (drip irrigation)

Items Water demand (m3)

Binggou eco-agricultural water-saving 1,076,668 and comprehensive demonstration

Wuhudun water-saving irrigation 108,000 demonstration

Ma’anshan characteristic Agricultural 85,420 demonstration zone

Annual water demand in the three 1,270,088 m3 subproject areas in Ningxia

Source: based on the domestic FSR and the water resource balance analysis (Appendix C)

53. Regional water resource analysis of Tongxin subproject. According to water resource balance analysis report prepared by the water resource specialist in October 2017, for 667 ha of yellowhorn orchard (Xanthoceras sorbifolium Bunge) in Tongxin, yellowhorn can grow under drought, cold and barren conditions. Its theoretical water demand is much lower than wheat, corn and other crops. The allocated water quota is 11million m3/year from Guhaikuoguan 6th channel, which currently supplies other crops (mainly including wheat and corn) and drinking with 5.65million m3/year. The water demand from the 667 ha of yellowhorn orchard is 1.64million m3/year, so the existing irrigation water quantity can meet the needs of the proposed development of water-saving agriculture. Taking into account water reduction of the Yellow River in recent years, the water intake allocation from the Yellow River in Ningxia is also declining year by year, irrigation water shortage is bound to intensify. The subproject shall adopt more stringent and efficient water-saving irrigation technology, in order to ensure sufficient planting benefits.

Figure 4- 17 Main Irrigation Design Scheme of the Proposed Tongxin Subproject Source: based on the domestic FSR

4.4 Assessment Areas and Sensitive Receptors

54. Assessment Areas. The project area of influence, or assessment areas, for surface water, air, noise, ecological impacts are defined by the technical guidelines for environmental impact assessment in the PRC, based on the environmental sensitivity of the project areas and the nature of the project. The assessment areas for various environmental aspects of the project areas are shown in Table 4-6, with the physical cultural resource, occupational health and safety, and community health and safety assessment areas added for this environmental due diligence. Upgrading 19.7 km of existing agricultural gravel roads in Hongsipu vineyards is located within the original vineyards established under the project. No any sensitive receptor (such as village, school or surface water body) is located adjacent to the proposed road in Hongsipu. 666.7 ha of yellowhorn orchards in Tongxin County are located at same location within same scope as in the original IEE dated September 2012. So the assessment areas

and sentitive receptors for the 19.7 km agricultural roads in Hongsipu and 666.7 ha of yellowhorn orchards are same as in the original IEE dated September 2012.

Table 4- 7 Assessment Areas Environmental Aspect Assessment Area Air quality Within 200m át a radius from the proposed subprojects boundaries red line Noise Not applicable (the cloest environmental sensitive receptor is located at a distance more than 200m) Surface water quality Within 200m át a radius from the proposed subprojects boundaries red line12 (the closest distance to Yellow River is more than 2.5km) Ground water quality Not applicable. Ecology Within 1km át a radius from the proposed subprojects boundaries red line Physical cultural resource Great Wall of Ming Dynasty13. (the second closest PCR - Han dynasty (PCR) tomb groups- is more than 2.5km away) Occupational health & safety Construction footprint Community health & safety Within 200m on both sides from the proposed subprojects boundaries red line14 Source: LIEC.

12 Where the proposed subprojects will potentially impose significant impacts. 13 The Ming Dynasty was the ruling dynasty of China from 1368 to 1644. 14 The red line refers to the edge of the project road/alignment.

Figure 4- 18 Map of assessment area Source: based on Google Earth (2017) and the domestic TEIAR, by the LIEC

55. Sensitive Receptors Based on site visit, the major environmentally sensitive protect group in the evaluated area includes: Mu Ming Village (Binggou subproject), Heng Cheng Garden (Wuhudun subproject), Great Wall of the Ming Dynasty (Wuhudun subproject), Yinchuan Hedong Airport (Ma’anshan subproject). Please refer to the following table of environmental protection objectives.

Table 4- 8 List of Environmental Sensitive Receptors (Source: based on the domestic TEIAR, by the LIEC)

No. and Environmental Direction and nearest distances to project Factors Sensitive Receptors boundary Features Environmental protection requirements

Noise and N1&A1 air 450 m, southwest (outside EIA assessment Mu Ming Village (Binggou scope) Vvillage 20 households (outside EIA assessment scope) subproject)

N2&A2 Hengcheng Garden 236 m, northwest (outside EIA assessment Residential 350 households (outside EIA assessment scope) residential community scope) community (Wuhudun subproject)

N3&A3 Class II, Ambient Air Quality Standard Yinchuan Hedong Airport15 100 m, west (atmospheric sensitive receptor) Transportation hub GB3095-2012. (Ma’anshan subproject)

Surface 20m to 200m, water Seven small constructed W7 and W8: located in the west of Wuhudun six at areas ranging from 0.6 to 2.9 Grade V, GPRC Surface Water Ambient Quality reservoirs (W2 to W8) subproject ha, and the remaining at 36.1 ha Standard (GB3838-2002) W2 to W6: located in the west and east of Ma’anshan subproject

Physical (i) PRC Cultural Relics Protection Law,2002 cultural G1- resource (ii) PRC Regulations on the protection of the 100 m, east (outside legitimate protection scope: Great Wall,2006 Great Wall of the Ming 50m on both sides) Cultural relics Dynasty (Wuhudun (iii) Notice of Promulgating protection scope of subproject) the early Great Wall in Ningxia Ningxia Hui Autonomous Region, September 2016

Ecologies and soil in the evaluated Protect the sound eco-environment; area All three new subprojects area in Yinchuan Ecologies and soil Environmental quality standard for soils Municipality (GB15618-1995) secondary standard

15 The feature of the proposed Wuhudun subproject activities will be basically for vegetation rehabilitation and do not involve any construction works.Yinchuan Hedong Airport, as a noise source itself, generates high noise. So here it is not regarded as an acoustic sensitive receptor. On the contrary, the proposed Maánshan subproject will contribute noise attenuation by trees and other plantations. Furthermore, the feature of the proposed Wuhudun subproject activities will be basically for vegetation rehabilitation and do not involve any construction works.

Figure 4- 19 Map of environmental sensitive receptors (Binggou subproject) Source: based on Google Earth (2017), by the LIEC

Figure 4- 20 N&A1-Mumin village Figure 4- 21 Han dynasty tomb groups Source: based on Google Earth (2017), by the LIEC

Figure 4- 22 Map of environmental sensitive receptors (Wuhudun subproject) Source: based on Google Earth (2017), by the LIEC

Figure 4- 23 The Great Wall of Ming Dynasty, adjacent to Wuhudun subproject Source: based on Google Earth (2017), by the LIEC

Figure 4- 24 Map of environmental sensitive receptors (Maánshan subproject) Source: based on Google Earth (2017), by the LIEC

Figure 4- 25 Hedong Airport (in the west of the proposed Ma’anshan subproject) Source: based on Google Earth (2017), by the LIEC

4.5 Assessment Period

56. The duration of impacts assessed in this report covers the construction and operational phases of the proposed subprojects. The construction phase for the proposed subprojects will be approximately 12 months, assuming starting in November 2017 and completing in October 2018. The assessment period for operational stage for proposed scope changes will cover up to year 2030 based on FSR forecast.

Chapter V Environmental Baseline

57. The three subproject sites in Yinchuan Municipality cover a total area of 806 ha, of which all are existing bare sandy or predominantly modified (impacted by human activity) grass land areas. The current landuse status is shown in the Figure 5-1. The three subproject sites are located in discrete areas across east Yinchuan as shown in Figure 1. Project sites do not include natural water bodies on or adjacent to the site, and are not located on or adjacent to the Yellow River or its tributaries16. The project sites do not overlap with national or provincial reserves, protected areas or critical habitats. Table 5-1 provides a brief summary for each site, supported by the following sections which present more detail on physical and ecological characteristics of each of the project sites. Upgrading 19.7 km of existing agricultural gravel roads in Hongsipu vineyards is located within the original vineyards established under the project. No any sensitive receptor (such as village, school or surface water body) is located adjacent to the proposed road in Hongsipu. 666.7 ha of yellowhorn orchards in Tongxin County are located at same location within same scope as in the original IEE dated September 2012. So the environmental baselines for the 19.7 km agricultural roads in Hongsipu and 666.7 ha of yellowhorn orchards remained same as in the original IEE dated September 2012. Since the impact scopes of the proposed supplementary rural road upgrading in Hongsipu District and replacement of yellowhorn orchards in Tongxin County are same as those included in the original IEE. Here this addendum mainly focuses on the proposed three new subprojects in Yinchuan Municipality (three new farms respectively in Binggou, Wuhudun, and Ma’anshan areas).

16 The sites do include artificial water bodies including reservoirs, canals, and drainage systems. In some cases such as Wuhudun and Maánshan sites, these water bodies provide irrigation water sources in subproject area. 50

Table 5- 1 Summary of Project Site Environment Total Current Existing Waste Natural Protected Site Site Site land type Agricultu land(ha) Wetland, Area and/or Coordinates Area (based ral Land Water Critical (ha) on below (ha) Body Onsite Habitat17 satellite or Adjacent Onsite or map Adjacent Figure 5- 1) Binggo 633 Sandy 0 633 No No18 E106°34′3″ u land ~106°36′27″ / N38°23′14″ ~38°25′58″ Wuhud 30 Natural 0 30 No No E106°27′17″ un grass ~106°28′8″ / land area N38°19′37″ ~38°21′15″ Ma’ans 143 0 143 No No19 E106°22′45″ han ~106°24′24″ / N38°09′ Source: based on the TEIR, by the LIEC

17 The thematic ecological impact assessment indicates that there is no legitimate biodiversity functions for the proposed three new subprojects areas in Yinchuan City 18 Closest PCR is Han dynasty tomb groups located more than 2.5km away. 19 Cloest PCR is Great Wall of the Ming Dynasty located more than 100m away, outside its protection scope (50m).

Figure 5- 1 Landuse status of Yinchuan Municipality and the proposed three new subprojects areas Source: based on the TEIR

Figure 5- 2 Existing status of the Proposed Binggou Subproject (Source: the LIEC)

East of subproject site South of subproject site

West of subproject site (Mumin village, 450 m closest, southwest) North of subproject site

Figure 5- 3 Existing status of the Proposed Wuhudun Subproject (Source: the LIEC)

East of subproject site (great wall,100m closest) South of subproject site

West of subproject site (Hengcheng Garden residential community236 m, northwest) North of subproject site

The Great Wall of the Ming Dynasty (Yinchuan Section) which belongs to the national level protected cultural relics, located at 100m closest (for detailed impact assessments please see paras. 94 to 97 in Chapter VII)

Figure 5- 4 Existing status of the Proposed Ma’anshan Subproject (Source: the LIEC)

East of subproject site South of subproject site

West of subproject site (airport) North of subproject site

Figure 5- 5 Existing status of the Hongsipu Subproject site (existing, to be implemented, with only 19.7km road to be upgraded)

Source: LIEC

Figure 5- 6 Existing status of the Tongxin Subproject site (existing, to be implemented, with only plantation type change)

East of subproject site South of subproject site

West of subproject site North of subproject site Source: LIEC

5.1 Physical Environment

58. Topography. Yinchuan urban terrain is divided into two parts of mountain and plain with slight leaning towards southwest – northeast, higher ground in west and south, lower ground in north and east. Geomorphic types are diverse, from west to east is divided into Helan Mountain, various proluvial fan plain, river plains, valley plains, river floodplain and so on. Altitude is between 1,010 ~ 1,150m with 2 ‰ of ground slope and thick layers. Located in the west of Yinchuan Municipality, Helan Mountain, total length of 150 km and width of 20-30 km, is medium-high mountain of calcarea with moving toward north by west. The altitude of highest peak is 3,556m, which is the natural barrier for the intrusion of north-west cold air and sandwind. Helan Mountain, within 70 km of Yinchuan Municipality, covers 58,800 hectares with high mountains and steep slopes. The proposed subprojects areas,with most in flat terrain, are in the east side of Yellow River and located in the tableland of Erdos and the west edge of Mu Us Desert. The terrain is mainly fixed sandy land and semi-fixed sandy land with part of shifting sandy land. The terrain is leaning from northeast toward southwest with 1,103-1,313m of altitude. Impacted by the west expansion of Mu Us Desert, the terrain with severe land sandification and sparse vegetation is mainly desert grassland.

Figure 5-7 Elevation status of the proposed three new subprojects areas in Yinchuan Municipality Source: based on Google Earth (2017), by the LIEC

59. Climate conditions. The proposed subprojects areas are typical of the continental climate with sufficient light and heat, arid and little rainfall, strong wind and sand and

large temperature difference. The annual average temperature is 8.1 ℃ with lowest average temperature –of 11℃ in January and the highest temperature is July with monthly average temperature of 19℃. The lowest extreme temperature is -30.3 ℃ (on 28th, December of 1954) and the highest extreme temperature is 37.7 ℃. The day and night temperature difference is generally above 15 ℃ with 3,388 ℃ active accumulated temperature based on≥10 ℃. The annual sunshine duration is 3,075.0h with 67.9% of sunlight. The total annual amount of solar radiation is 6,033Kcal/cm2. The annual frost-free season is 165～180d with first frost between the end of September and the early of October and late frost between the end of April and the early of May. The rainfall distribution, mainly in June, July and August that accounts for 61.6% of annual rainfall volume, is unbalanced with 180～200mm of annual average rainfall capacity. The annual average evaporation volume is 2,088.2mm, 10.5 times of annual rainfall capacity. The air humidity is small with 56% of annual average humidity. The wind direction is mainly southwest with 2.5m/s of annual average wind speed and 22m/s of fastest wind speed. The wind days that is more than 17m/s is 30 days and the annual average day for sandstorm is 10-12 days. The major natural disasters include: drought, wind, sandstorm, hail, frost, polar outbreak, chilling damage etc.

Figure 5-8 Diagram of Average Temperatures and Precipitation in Yinchuan Municipality

Figure 5-9 Diagram of Cloudy, Sunny and Precipitation Days in Yinchuan Municipality

Figure 5-10 Diagram of Wind Speed in Yinchuan Municipality

Figure 5-11 Diagram of Wind Rose in Yinchuan Municipality

60. Water resources. The proposed subprojects areas are near by the east of Yellow River which is 78.4 km in Yinchuan with 29 billion m3 of annual throughput. However, impacted by the terrain and altitude, it is hardly to utilize Yellow River water during the proposed subprojects construction and it can be used after pumping water. The surface water in proposed subprojects areaa is mainly from the atmospheric precipitation. Influenced by the Mu Us Desert, the natural rainfall is generally permeated into the surface. Binggou, the seasonal gully, is formed after being impacted by the terrain in the north. Limited water flows through the gully and pours into Yellow River before the arrival of rainstorm period. Due to being deeply buried and inferior water quality, it is hardly to effectively use the underground water. The water from Yellow River can be pumped and the impounding reservoir will be built for the subprojects needs to ensure supplíes of water source. The Ma’anshan subproject, located in the Jinggou, covers 20km2 with low coverage of vegetation, soil bareness, large evaporation, poor water storage capacity, leading to rainfall’s injection into Yellow River by runoff. At present, the impounding reservoir for phase I, II and the one with 160 000 m3 of water storage capacity have been built with 300,000 m3 of total water storage capacity. The water is mainly for the irrigation of new projects in forest land in Ma’anshan area. The new impounding reservoir is to be built without new water use quota.

Figure 5-12 Surface Water Resources in the proposed three new subprojects areas in Yinchuan Municipality

Source: based on Google Earth (2017), by the LIEC

61. Soil. The main soil of the proposed three new subproject areas in Yinchuan Municipality is semi paved and semi stabilized aeolian sand soil (Binggou subproject) and light gray calcium soil (Wuhudun and Maánshan subprojects).

Figure 5-13 Soil status of Yinchuan Municipality and the proposed three new subprojects areas (source: domestic TEIAR)

5.2 Baseline environmental monitoring

62. The status of environment and air quality .The proposed three new subprojects areas are located in Yinchuan Municipality, the east coast of the Yellow River and Binghe New District. Because of decentralization of subprojects, the assessment will evaluate the environment and air quality based on the data in 2015, quoting from the Environment Quality Report in Ningxia Hui Autonomous Region.

Figure 5- 14 Locations of Six Air Quality Monitoring Stations in Yinchuan Source: based on Google Earth (2017) and Yinchuan EPB, by the LIEC

Table 5- 2 Urban Air quality monitoring results of Yinchuan Municipality in 2015

Unit: μg / m 3

Monitoring Monitoring results and compliance status parameters Maximu Minimum Average PRC Number of Compliance WHO/EHS m value value concentrat GB3095-201 days in rate Guidelines ion value 2 complianc e （%） Class II Interim Targets AQG

SO2 348 3 64 60 321 87.9 n/a n/a

NO2 Annual 92 9 39 40 353 96.7 n/a 40

PM 10 average 487 23 112 70 295 80.8 30 - 70 20

PM 2.5 244 10 51 35 318 87.1 15 - 35 10

Source: dometstic TEIAR

Table 5-2 shows that the pollution status of pollutants is as follows:

① SO2 concentration range is between 3~348μg/m3 with average concentration of 64μg/m3, The days of reaching the standard is 321, exceeding 44 days with 87.9% of reaching the standard, which surpass the secondary standard limits of the Air Quality Standard (GB3095-2012). The source of

exceedance for SO2 is from regional coal heating, which higher the regional

concentration of SO2. 3 ② NO2 concentrations range is between 9~92μg/m with average concentration of 39μg/m3, The days of reaching the standard is 353, exceeding 12 days with 96.7% of reaching the standard, which surpass the secondary standard limits of the Air Quality Standard (GB3095-2012), equivalent to AQG standar limts of

WHO/EHS Guidelines . The source of exceedance for NO2 is from regional coal

heating, which higher the regional concentration of NO2. 3 ③ PM10 concentration range is between 23~487μg/m with average 3 concentration of 112μg/m . The days of reaching the exceedance is 70. PM2.5 concentration range is between 10~244μg/m3with average concentration of 3 51μg/m . The days of reaching the exceedance is 47. Both PM10 and PM2.5 surpass the secondary standard limits of the Air Quality Standard (GB3095-2012) in that the concentration background value of particulate matter in the air is higher due to the arid climate condition, low coverage of vegetation

and sand proneness. Remarkably, PM10 and PM2.5 of partial days in the whole 2016 complied with Interim Targets of WHO/EHS Guidelines, whilst all days’

monitored PM10 exceeded AQG standar limts of WHO/EHS Guidelines.

https://www.aqistudy.cn/historydata/monthdata.php?city=%E9%93%B6%E5%B7%9D

Figure 5- 15 Air Quality Status in Yinchuan

63. The status of environmental quality for surface water. The perennial surface water in evaluated area is from Yellow River, and the assessment adopts the monitoring data of fracture surface of Ying’gu Highway Bridge in Environment Quality Report on Ningxia Hui Autonomous Region(2011-2015).

Figure 5- 16 Locations of Water Quality Monitoring Station (Yellow River) in Yinchuan

Source: based on Google Earth (2017) and Yinchuan EPB, by the LIEC

Table 5- 3 Yellow River water quality monitoring results at Ying’gu Highway Bridge section in 2015 Unit: mg / L, excluding pH dimensionless

Class Ⅲ Number of Maximum Minimum Average Compliance arameters samples value value value Standard status values*

PH 12 8.06 7.51 7.51-8.06 6-9 Yes

Dissolved oxygen 12 12.5 6.2 8.8 5 Yes

Permanganate index 12 3.4 1.7 2.6 6 Yes

Biochemical oxygen 12 2.8 1.0 1.6 4 Yes demand

Ammonia nitrogen 12 0.476 0.130 0.269 1.0 Yes

Hg 12 0.00006 0.00001 0.00003 0.0001 Yes

Lead 12 0.0002 0.0000 0.0001 0.05 Yes

Volatile phenol 12 0.0008 0.0002 0.0003 0.005 Yes

Petroleum 12 0.039 0.005 0.015 0.05 Yes

Total phosphorus 12 0.170 0.019 0.082 0.2 Yes

COD 12 15 6 9 20 Yes

Cu 12 0.009 0.001 0.002 1.0 Yes

Zinc 12 0.0357 0.0003 0.008 1 Yes

Fluoride 12 0.52 0.26 0.378 1 Yes

Se 12 0.0002 0.0000002 0.0001 0.01 Yes

As 12 0.008 0.001 0.003 0.05 Yes

Cd 12 0.0089 0.00001 0.00089 0.005 Yes

Hexavalent chromium 12 0.002 0.002 0.002 0.05 Yes

Cyanide 12 0.001 0.001 0.001 0.2 Yes

Anionic Surfactant 12 0.057 0.025 0.032 0.2 Yes

Sulfide 12 0.010 0.010 0.010 0.2 Yes

* PRC Surface Water Ambient Quality Standard (GB3838-2002) Source: based on the TEIR

From the table, it shows that the environmental quality of surface water in the proposed three subproject areas in Yinchuan Municipality reaches standard limits with sound status. 64. The status of the acoustic quality of the environment. According to the TEIAR survey, the proposed three subproject areas in Yinchuan Municipality are all barren land. The noise evaluation is mainly on the impact of regional traffic noise whose values are close to the background value of noise. The acoustic environmental quality in the proposed three subproject areas in Yinchuan Municipality is good. 69

65. Status of eco-environmental quality. Located in Yinchuan Municipality, the east coast of the Yellow River and Binghe New District Yinchuan Hedong Airport on the eastern side，the vegetation in the proposed thre new subprojects areas are desert grassland with sparse and unbalanced distribution and mainly dominated by xerophyte and super-xerophyte shrub, subshrub and herbaceous plant, according to the existing data and filed investigation as well as evaluation on ecological and environmental impacts. The natural growing shrub and subshrub include: Oxytropis aciphylla, Scoparium, Caragana korshinskii, Tamarix, acacia etc.Herbaceous plant includes cowscent root, sand rice, bitter beans, Artemisia annua, Achnatherum, long grass etc.. The vegetation coverage rate is around 5-15% without protected animals. The wild animal composition is simple with limited species. Rodents include ground squirrel, gerbil jird, jerboa ect; birds: magpie, jungle crow, crested lark, mogolian lark, tree sparrow etc. According to the below vegetation distribution map, Binggou subproject area falls within Semi-bushes (Artemisia semi-shrub, Parkia speciosa, containing licorice, Salix cheilophila) while the Wuhudun and Ma’anshan subproject areas respectively belong to red sand desert area and Salsola arbuscula Pall. Desert area.

Figure 5- 17 Vegetation status of Yinchuan Municipality and the proposed three new subprojects areas (Source: based on the TEIR)

Box 1 Artemisia semi-shrub

The drought enduring perinnial semishrub Artemisia which are widely distri-buted on cold seasion rangeland in western part of China are the main com-ponents in Arternisia desert, they are also good forages for livestock;

Source: 《Acta Agrestia Sinica》 1991-01, Shi Dingsui Smayi BalaLy Zhen Ling Wang Juenling (Xinjiang August 1st Agricultural College)Cheng Cai hui Lu Zhong Yi (Grassland Section of Xinjiang Animal Husbandry Department)

Box 2 Parkia speciosa Parkia speciosa (petai, Indonesia: pete, Manipuri:Yongchak Thai: สะตอ (sataw, sator, sadtor, sa-dtor), English: bitter bean, twisted cluster bean or stink bean) is a plant of the genus Parkia in the family Fabaceae. It bears long, flat edible beans with bright green seeds the size and shape of plump almonds which have a rather peculiar smell, similar to (but stronger than) that of the Shiitake mushroom, characterised by some as being similar to natural gas. The beans or other Parkia species (Parkia javanica and Parkia singalaris for example) are popular as culinary ingredient in Indonesia, Malaysia, Singapore, Laos, southern Thailand, Burma, and northeastern India specially Manipur, and are sold in bunches, still in the pod, or the seeds are sold in plastic bags. Pods are gathered from the wild, or from cultivated trees: they are exported in jars or cans, pickled in brine, or frozen.

Box 3 containing licorice Licorice grows wild in some parts of Europe and Asia. A perennial that grows 3 to 7 feet high, licorice has an extensive branching root system. The roots are straight pieces of wrinkled, fibrous wood, which are long and cylindrical (round) and grow horizontally underground. Licorice roots are brown on the outside and yellow on the inside. Licorice supplements are made from the roots and underground stems of the plant. Licorice (Glycyrrhiza glabra) has been used in food and as medicine for thousands of years. Also known as "sweet root," licorice root contains a compound that is about 50 times sweeter than sugar. Licorice root has been used in both Eastern and Western medicine to treat a variety of illnesses ranging from the common cold to liver disease. It acts as a demulcent, a soothing, coating agent, and as an expectorant, meaning it helps get rid of phlegm. It is still used today for several conditions, although not all of its uses are supported by scientific evidence.

Box 4 Salix cheilophila Salix cheilophila: Shrubs or small trees, to 5 m tall. Branchlets grayish black or reddish black, at first tomentose, glabrescent. Buds villous. Petiole very short; leaf blade linear, linear-oblanceolate, or oblanceolate, 2.5-3.5(-6) cm × 3-5(-1) mm, abaxially grayish white, densely sericeous, adaxially green, pilose, base attenuate, rarely obtuse, margin glandular serrate distally, revolute, apex acuminate or apiculate; midvein raised abaxially. Flowering coetaneous. Male catkin 1.5-2.3 cm × 3-4 mm, subsessile, with 2 or 3 leaflets at base; bracts obovate-oblong, base downy, apex obtuse or retuse. Male flower: gland narrowly oblong, rarely 2-lobed; stamens 2, connate throughout, glabrous; anthers yellow, 4-loculed. Fruiting catkin to 2.5 cm; bracts suborbicular. Female flower: gland narrowly oblong; ovary ovoid or ovoid-cylindric, densely pilose or glabrous, sessile or shortly stipitate; stigma small. Capsule ca. 3 mm. Fl. Apr-May, fr. May.

* Riverbanks, streamsides, or cultivated; 700-3000 m. Gansu, Hebei, Henan, Inner Mongol, Ningxia, Qinghai, Shaanxi, Shanxi, Sichuan, Xizang, Yunnan

Very similar to Salix wilhelmsiana; the two species may, in the broad sense, be conspecific.

Box 5 Salsola arbuscula Pall.

A perennial plant species and resistant to drought and salinity, is distributed in the winter rangelands of the deserts.

Figure 5- 18 Landcover and vegetation status of the proposed Binggou subprojects area

Source: LIEC

Figure 5- 19 Landcover and vegetation status of the proposed Wuhudun subprojects area

Source: LIEC

Figure 5- 20 Landcover and vegetation status of the proposed Ma’anshan subprojects area

Source: LIEC

5.3 Main environmental issues in the assessment area

66. The major environment issue in three new subprojects areas in Yinchuan Municipality is exceedance of PM10 due to the natural conditions such as perennial arid climate, scarce rainfall, unbalanced timing of rainfall. Besides, coal ash, flying dust, dust by vehicles are also the major factors for the environmental pollution.

Chapter VI Alternative Analysis

6.1. No Project Alternative

67. Compared to the with-project scenario, the without-project scenario would see continued poor water use efficiency including widespread use of flood irrigation and leaking irrigation canals. There would be a continued focus on low value crops such as maize and wheat, and poor agricultural productivity and crop quality would continue due to poor agricultural practices and management. There would be limited expansion of new irrigated land due to the existing cap on water allocation, and with the likelihood of reducing water allocation quotas, it is possible that the area of irrigated agricultural will start to reduce to do competing demands for water resources. Without a means to improve water use efficiency, agricultural practices will become increasingly vulnerable to the impacts of climate variability. 68. Smallholder farmers would face the need to intensify their agricultural practices still further to maintain current incomes. This would lead to over cultivation, degradation of soil quality and water holding capacity, and further desertification. 69. In Hongsipu, the existing agricultural gravel roads in Hongsipu vineyards within the original vineyards established under the project is bumping and very dusty. The proposed road upgrading will address environmental problems and improve road conditions, connectivity and safety. 6.2. Discussion of Alternative Solutions

70. Subproject area selection. With ADB loan, the proposed subprojects aim to develop water-saving agriculture, improve agricultural economy and agricultural ecological environment through water conservation projects, economic forest construction, ecological protection and water and soil conservation, infrastructure construction supporting etc. to realize the optimization of water and soil resources configuration, saving water resources, promoting the stable development of agriculture, and continuous income growth for farmers. The proposed subproject areas, lacking rainfall but with wind and dust, can utilize the bare land without irrigation canal system through water-saving irrigation technology to optimize allocation of land resources and increase the income for farmers. In conclusion, the proposed subproject sites are in line with the requirements of location rationality.

71. Alternative water conservation options. The proposed subprojects will achieve water conservation by a combination of solutions, including improvement to canal, channel and pipe infrastructure, improvement to water storage reservoirs, improvement to irrigation methods and technologies, and selection of crop type to maximize productivity value. Each of these improvements has been evaluated and the optimum combination of improvements for maximum water conservation outcome has been considered. One of the primary water conservation measures is the conversion of existing flood irrigated agriculture to pipe or drip irrigation. Within the context of the proposed subprojects objectives and activities, the approach identified is considered to be optimal to maximize water savings for the purposes of improving cultivation and quality of the target crops. 72. Alternative project sites. Project site selection has been made with consideration for avoiding potential environmental impacts, in areas of existing agriculture and on adjacent undeveloped grass lands away from known environmentally sensitive ecosystems. In addition, the following considerations were made when locating the projects sites: land slope less than 35 degrees, strict exclusion of land hosting valuable natural ecosystems, maintain passage way for native fauna, and located away from nature reserves, cultural heritage and natural heritage sites.

73. Plant type in Tongxin. Yellowhorn can grow under drought, cold and barren conditions. Its theoretical water demand is much lower than wheat, corn and other crops. So yellowhorn is proposed under this project.

Chapter VII Anticpated Environmental Impacts from the Proposed Scope Changes and Relevant Measures

7.1 Environmental Benefits and Summary of Potential Impacts

74. The potential environmental benefits and impacts of the proposed scope changes have been assessed in line with ADB‘s SPS (2009), including assessment of possible benefits and impacts with regard to (i) biodiversity conservation and sustainable natural resource management, (ii) pollution prevention and abatement, and (iii) health and safety, and physical cultural resources. The regional water resource analysis for all proposed subprojects sees the Chapter 4.2. Since the impacts of the proposed supplementary rural road upgrading in Hongsipu District and replacement of yellowhorn orchards in Tongxin County are very similar or identical as those included in the original IEE. Here this addendum mainly focuses on the proposed three new subprojects in Yinchuan Municipality (three new farms respectively in Binggou, Wuhudun, and Ma’anshan areas). 75. The proposed subprojects20 is likely to result in environmental and social benefits in the following key areas: 76. Combating land degradation and desertification. The subprojects have the potential to make a positive contribution towards combating land degradation and desertification in Yinchuan, through the application and promotion of improved agricultural practices, including the following: The overall outcome will be reduced soil erosion and increase land productivity. (i) Drip and pipe irrigation replacement of current flood irrigation practices on existing farmland resulting in reduced water requirements; reduced farmland soil erosion; and reduced discharge of nutrients, pesticides, and sediment into surface water and groundwater;

(ii) Improved agricultural practices, including promoting the use of organic fertilizers such as manure, promoting zero-tilling practices to reduce disturbance of soil and increase soil stability; and

(iii) Expansion of dryland agriculture on approximately 806 ha of degraded land contributing to increased soil stabilisation (through establishment of shelterbelts and cropped land), increased biodiversity and increased soil quality (through the application of organic fertilizers).

77. Reduced siltation of water course, irrigation canals, and reservoirs. As a result of improved agricultural practices such as minimum or zero-tillage planting, water-use conservation drip irrigation techniques and sediment runoff is likely to be reduced from the subproject sites, particularly from existing farmland areas currently using flood irrigation techniques. This will reduce the sediment load entering surface water courses, irrigation canals and reservoirs, reducing maintenance costs, improving environmental flows, and improving flood management potential of reservoirs. 78. The subprojects design has been improved to enhance soil stability, including restriction on cutting bushes and grasses on steep slopes, tops of slopes, and gully bottoms to maintain

20 In addition, the proposed road upgrading in Hongsipu will address environmental problems and improve road conditions, connectivity and safety. And yellow horn is drought resistant and can be used in oil production in Tongxin. It has economic benefits but will use less of the scarce resources particularly water. 78

vegetation protection against soil erosion. Slope land of more than 35 degrees has been excluded from the subprojects to prevent against increased erosion. 79. Improved irrigation water use efficiency. The subprojects are expected to save irrigation water currently being applied flood irrigation and high water demand crops. The subprojects will improve water use efficiency on existing agricultural land. Improved irrigation water efficiency brings environmental benefits including providing a buffer for adaptation to the potential impacts of climate variability, and demonstration of sustainable agriculture techniques that can be replicated. In Tongxin subproject, yellow horn is drought resistant and can be used in oil production. It has economic benefits but will use less of the scarce resources particularly water. 80. Carbon sequestration. The subprojects will establish approximately 415 ha of desertec green fruits and vegetables planting, characteristic agriculture and forested shelterbelts on land currently supporting sparse vegetation. The establishment of new vegetation has the potential to sequester carbon dioxide. Based on published average rates for carbon sequestration for agriculture and forestry, the area of newly established desertec green fruits and vegetables planting, characteristic agriculture and forested shelterbelts will result in sequestration to 1,815 tons of carbon dioxide per year21. 81. Climate change adaptation. Ningxia is located in the northwest arid inland, a temperate, arid and semi-arid climate zone, where its precipitation is rare, at an average annual rainfall of 202.8mm. Its climate is dry, and evaporation is high, with an annual evaporation at 9 ~ 12 times of its precipitation. It has a serious shortage of water resources. With the acceleration of urbanization process, the contradiction between supply and demand of water resources in Ningxia will be further exacerbated. 82. The proposed subprojects are located in desert grassland type, affected by the westward expansion of the Ms Us Desert, the land is seriously desertified, the surface vegetation is sparse and the wind is strong with sand. Drought, wind, dust storms, hail, frost, cold wave, low temperature chilling and other natural disasters are frequent. In the context of climate change, the contradiction of water resources is more prominent, and the frequency and intensity of natural disasters will increase. While the proposed subproject areas are an underdeveloped area or poor area. Studies have shown that poverty and the vulnerability of climate change have a high degree of geographical overlap. Under such circumstances, the proposed subproject areas will become more vulnerable. 83. The proposed subprojects can improve the water supply and demand contradiction and improve the adaptability to climate change by improving the water conservancy infrastructure and using new technologies such as drip irrigation, terrace irrigation and tidal irrigation. 84. The natural development model is the most effective response to climate change, whether it is emission reduction or adaptation. The development of the proposed subprojects will feature economic forest cultivation, and promote the optimal allocation of water and soil resources, and advanced scientific and technological to effectively strengthen the capacities of farmers in the proposed subproject areas. It will vigorously promote the application of new varieties, new technologies and new processes to improve the level of scientific management, sustainable management and poverty alleviation, increase the economic income of farmers in the project area, thereby reducing poverty, reducing the impact of climate change and enhancing climate resilience. 85. The proposed subprojects will not only maintain soil and water, wind and sand fixation, carbon sequestration and oxygen release, but also enhance the adaptability of the local community to the climate through the combination of arbor, shrub and grass n and multi-tree

21 Besides, the 533 ha of yellowhorn orchard (Xanthoceras sorbifolium Bunge) in Tongxin can bring sequestration to 2,059 tons of carbon dioxide per year. 79

species. However, during the construction, it should be paid attention to reduce the degree of disturbance to the original surface vegetation and the soil. On ecological shelter forest along roads, more multi-tree species, coniferous and broad-leaved, shrub grass compound planting modes should be used. 86. There is opportunity to expand the potential environmental benefits listed above, if the improved irrigation water use and agricultural practices demonstrated by the project are promoted to other farms within Ningxia. The maximum potential benefit of the subprojects will be realised by broad-scale adoption of the demonstrated practices. The subprojects implementation should consider a plan to communicate achievements and promote expansion of improved water use efficiency and agricultural practices to maximise these potential environmental benefits. 7.2 Environmental Impacts and Mitigation Measures during Construction Phase

A. General Impacts and Migitation Measures

87. The subprojects construction phase has the potential to result in adverse environmental impacts. The construction phase, which will occur over a 1-year period expected to commence in November 2017, will involve construction of infrastructure, including preparation of land, planting crops, construction of irrigation canals, water pipes, reservoirs and unsealed roads. The proposed construction works have the potential to cause adverse environmental impacts to soil, water, air, flora, and fauna, including potential for: (i) Increased soil erosion and soil nutrient loss. Excavation works, including preparing land for planting and excavation of canals and reservoirs (two in Binggou at a capacity of 100,000m3 each, one in Ma’anshan at capacity of 100,000m3) , have the potential to increase soil erosion and nutrient loss if poorly managed, undertaking during heavy rainfall events, or strong winds. Soil preparation, planting, and tending purposefully disturb existing vegetation and soil surfaces to create a favorable environment for the growth of the new plants. However, these activities can easily cause new soil erosion; and furthermore, affect the surroundings of project sites. Measures to mitigate adverse impacts will include improved soil preparation methods, including pit, strip, and anti-slope based on the type of site condition; and covering prepared soil with cut grasses or bush branches to avoid wind or water erosion. Excavated topsoil will be stockpiled for reuse. The FSR indicates that the Ma’anshan characteristic Agricultural demonstration zone subproject will need backfilling of 160,000 m3 of planting soil. To mitigate against potential soil erosion impact from infrastructure excavation, works will be restricted to the dry season (September–June); stopped during strong wind (>40 km/hr); and appropriate management measures will be enforced, including covering stockpiles; sediment runoff control barriers; and diversion channels constructed, as outlined in the updated EMP (Appendix A). (i) Impacts to original flora. Clearing planting sites may cause permanent or temporary disturbance to original vegetation. While no known protected flora species have been identified on the project sites, disturbance of original vegetation should be minimised. Mitigation measures outlined in the EMP include (a) prohibition to burning vegetation and residual bushes and grasses when clearing planting sites, in compliance with the PRC‘s Water and Soil Conservation Law (2011) and the Forest Fire Prevention and Control Regulation (2008); (b) only cutting grasses or bushes which are obstacle to planting activities and tree growth in patches or strip shape, and pilling them up between planting rows or holes to allow them to naturally decay; (c) when clearing planting sites in patches or strips on land with slopes of more than 15 degrees, every 30-m clearance cutting should allow a 3-m contour strip to allow for the original vegetation. (ii) Impact to surface water quality. Impacts to surface water quality may include increased siltation as a result of soil erosion, and discharge of construction camp wastewater. These impacts primarily relate to irrigation water quality, as the project sites are not located adjacent to natural water bodies. Siltation will be managed through the use of silt fences,

covering stockpiled material, and restriction of excavation to dry season. Uncontrolled wastewater discharge from construction camps has the potential to result in impacts to water quality. To mitigate against this impact, portable sanitary systems will be used at construction camps. The wastewater will be collected, transported off site, and disposed of to the domestic sewerage system. (iii) Impacts to air quality. Dust generated by excavation and land preparation works and emissions from vehicles has the potential to impact local air quality. Potential sources of dust generation construction activities are similar at all project sites and include (a) dust from land preparation; (b) dust from excavation, loading, hauling, and unloading; (c) dust generated by the movement of vehicles and heavy machinery on unpaved access and haul roads; and (d) dust from aggregate preparation and fumes from asphalt transportation and paving for Hongsipu subproject access road (19.7km). Mitigation measures for dust not mentioned above for soil erosion, include vehicles delivering crops; and other materials to the sites must be covered, spraying water on active construction roads and excavation sites daily to reduce dust, and re-vegetating construction sites at completion of works. Mitigation measures associated with vehicle emissions will include requiring vehicle compliance with construction plant maintenance and emission regulations. For Hongsipu subproject access road (19.7km), commercial asphalt will procured negating the need for asphalt mixing on construction sites, and asphalt fumes will only be generated during road paving. Fumes will contain small quantities of toxic and hazardous chemicals such as volatile organic compounds (VOCs) and poly-aromatic hydrocarbons (PAHs), and may have negative impacts surrounding the subproject, however, due to its remote rural nature and associated hardly populations (no sensitive receptor is identified within 500m scope, excluding those season workers for the vineyard). Asphalt fumes generated during road paving with commercial asphalt will be considerably less than fumes generated during on site mixing, and according to the other similar construction site practices, once the paved asphalt is cooled to <82o C asphalt fumes will be reduced substantially and then totally eliminated when the asphalt is solidified. The use of closed mixing asphalt road laying equipment is ideal.Impacts will thus be short-term in duration, localized in scale and low in magnitude. (iv) Noise impacts. Heavy machinery operation has the potential to result in noise impacts. Noise volume of construction machinery is generally between 80 dB and 110 dB, while vehicle noise intensity is generally about 90 dB. As some of the construction areas are adjacent to villages, noise will have some impacts on nearby residents. The proposed subprojects activities will not result in a maximum increase in background levels of 3 dB at the nearest receptor location off-site as WHO/WB EHS guideline stipulated. To mitigation against this, project equipment and machinery must comply with the PRC‘s Standard for Noise from Construction Sites (GB12523 － 2011),selecting low-noise technology and equipment, use of vibration dampers for equipment components with large vibration, and maintain equipment in good repair. Adequate routes for large trucks should be considered to divert away from residential areas, where possible. When vehicles do pass through noise-sensitive areas, speed should be controlled to no more than 35 km/hour; and use of horn should not be permitted. Construction works should be restricted outside the hours 06:00 and 22:00, or as agreed based on community consultation. (v) Generation of solid wastes. Construction camps will result in the generation of general waste and construction solid waste. Management of waste should include minimisation; reuse; recycling through the use of multi-compartment collection bins; composting of solid waste, where appropriate; regular collection by the city sanitation bureau; and disposal to a municipal sanitary landfill.

88. These potential impacts are likely to be localized and will occur over a relatively short period of time. With strict adoption and enforcement of mitigation measures, the majority of these

impacts can be avoided. Table A1 summarises the construction phase potential impacts and mitigation measures discussed above with reference to the updated EMP (Appendix A). 89. General Mitigation Measures. In the preparation of the domestic TEIAR, the feasibility study report, and during the ensuing preliminary design phase, the following mitigation measures have been and will be undertaken: (i) All the subproject sites are carefully selected to avoid or minimize potential adverse impacts on the environment and surrounding communities. (ii) The facilities are located and designed to minimize resettlement impacts. (iii) Adequate technical design and scheduling of construction activities for the proposed subprojets will provide for safety, sanitation, and environmental protection in compliance with government regulations and international practices. For Hongsipu subproject access road (19.7km), safety goggles and respiratory masks to workers doing asphalt road paving (iv) All the subprojects have undergone the EIA process under the PRC laws and regulations. The TEIAR was prepared by qualified EIA institute, reviewed by expert panels, and approved by the local environmental protection authority or the respective municipal environmental protection bureaus. (v) Appropriate environmental mitigation and monitoring measures are included in the updated EMP. The proposed environmental mitigation measures will form part of the design documents for the components, and be included in the contracts for procurement of goods and services. All contractors and subcontractors will be required to comply with the updated EMP. (vi) The updated environmental monitoring program in the updated EMP has also incorporated into the overall project design to ensure that environmental impacts are closely monitored and the construction and operating activities are closely supervised against the updated EMP.

B. Biodiversity Conservation and Sustainable Natural Resource Management

90. Critical habitats and legally protected areas. The subproject sites are not located in forests and grassland of ecological significance, natural reserves, or scenic areas. The project sites have been selected to avoid or minimize potential adverse impacts on the environment and surrounding communities. The project will promote the management and use of renewable natural resources, where applicable. For revegetation purposes (shelterbelts and revegetation of construction sites), the project will only utilize plant species which are native or already long established in Ningxia; and which are routinely used in Yingchuan for these purposes. 91. Ecological impacts. The domestic TEIAR including thematic ecological impact assessment concludes very similar impacts and mitigation measures with the orginal IEE, excluding different subproject sites. The thematic ecological impact assessment indicates that there is no legitimate biodiversity functions for the proposed subprojects areas. 92. The proposed five subproject areas’ existing landuse status belongs to unused state-owned land, abandoned farmland and so on. The proposed reservoirs, pumping stations, field roads and so on (at a total area of appromiately 33 ha or 2.2%22 of total five subprojects’ land area), for details please see the Table 4-2 of page 16) will change the original land cover into hardened (paved) surface, and can not be restored. Temporary land occupation will be mainly used for temporary stockpiles, equipment/material and hoisting machinery stacking, and etc., which will affect the nature of land use only in the construction period.

22 This pencentage includes: (i) upgrading 19.7 km of existing agricultural gravel roads in Hongsipu vineyards within the original vineyards established under the project. It will only change the pavement type from the current gravel to asphalt; and (ii) replacing 666.7 ha of Chinese dates with 666.7 ha of yellowhorn orchards in Tongxin County, at same location within same scope as the original IEE dated September 2012. It will remain the same forestation area as that evaluated in the original IEE (September 2012). 82

Once construction activities are finished, with timely restoration of vegetation, the tempoaritly occupied land will recover the original land use nature. The implementation of the proposed forestry measures from the proposed five subprojects will change the original unused land into forest land, improve the efficiency of land use, and increase the number of arable land.The proposed economic forest, shelterbelts, etc., will increase the subproject areas’ vegetation coverage, height and biomass, to further improve the regional ecological environment. So the new project interventions will promote forestation. 93. During the construction period, the proposed activities of water conservancy farming, road works, land leveling and others will inevitably clean up the original surface plantation, and the construction activities will irreversibly affect the existing surface plants. The domestic EIA survey results incidate that the plant species to be destroyed or affected in the proposed five subproject areas are widely distributed and common species, and the distribution is uniform. Therefore, although the construction activities will make some local loss of the original vegetation, it will not make the plant community species’ composition changed, either cause disappearance of any species. In addition, due to excavation of earth and stone and a variety of construction machinery and transport vehicles into the construction sites, the generated dust and exhaust will have a certain impact on the nearby vegetation, partial dust to settle in plants leaf surface, wihich will reduce photosynthesis and respiration of plants, and then exacerbate plant growth, if at flowering, dust will affect the plant fruits, especially crop yield and quality. The scope of the impact is mainly limited at downwind of the construction sites within a range of a few meters, under normal circumstances, there will be minor damage. The following ecological impact mitigation measures are proposed: (i) Prohibit random sewage discharge and materials stockpiling. (ii) Shelter forest should firstly select local species, which adapt to the local climate, light and soil conditions and the surrounding environment, also conducive to restore the local natural ecological environment and integrity, and can reduce the artificial watering and fertilization. (iii) Implementation of environmental awareness education. (iv) Timely restore temporary land occupation and revegetate.

C. Cultural Relics and Physical Culture Resources

94. Physical Culture Resources. Based on site inspection of each site and review of published reports, physical cultural resources were not identified on the subproject sites; and it is considered unlikely that important physical cultural resources will be found on the project sites. In the case that such resources are found, all construction work will be put to a halt and consultations will be held with the local authorities and project staff on how to proceed. Response to such events and the subsequent decisions and actions are outlined in the updated EMP (Appendix A), and will be reported in the environmental monitoring reports and project progress reports. In any case, the executing and implementing agencies confirmed that the subprojects will not remove physical cultural resources unless the following conditions are met: (i) no alternatives to removal are available; (ii) the overall benefits of the subprojects substantially outweigh the anticipated cultural heritage loss from removal; (iii) removal is conducted in accordance with relevant provisions of national; and (iv) local laws, regulations, and protected area management plans and national obligations under international laws and employs the best available techniques. 95. Impact on Great Wall of the Ming Dynasty during Construction from Wuhudun subproject. Adjacent to (100m away at the closest) the Wuhudun subproject area, the key cultural heritage is the Great Wall of the Ming Dynasty which belongs to the national level protected cultural relics. As the precious cultural heritage it cannot be restored once being damaged. 83

The Great Wall of the Ming Dynasty (Yinchuan section) with 3.5 km long and poor preservation, moving from north towards southwest, locates in the northwest of Wuhudun subproject area with 100m of the nearest distance from subproject boundary, which meets requirements of 50 m on both sides of protection area. The subproject satisfies the needs of site selection that is 50m away from the Great Wall of the Ming Dynasty according to PRC Regulations on the protection of the Great Wall,2006 and Notice of Promulgating protection scope of the early Great Wall in Ningxia Ningxia Hui Autonomous Region, September 2016. Therefore, the proposed Wuhudun subproject activities will neither pass through nor involve the protection scope of the Great Wall of the Ming Dynasty. Furthermore, the feature of the proposed Wuhudun subproject activities will be basically for vegetation rehabilitation and do not involve any construction works. 96. To better protect the Great Wall of the Ming Dynasty, it requires the relevant laws and regulations such as the PRC Cultural Relics Protection Law,2002, PRC Regulations on the protection of the Great Wall,2006 and Notice of Promulgating protection scope of the early23 Great Wall in Ningxia Ningxia Hui Autonomous Region, September 2016 etc., should be strictly complied. The Wuhudun subproject construction should avoid and bypass the Great Wall and the following activities shall be prohibited in the Great Wall of the Ming Dynasty: ① earth and bricks taking, tree and crop planting; ② graving and defacing; ③ erecting and installment of unrelated facilities to protect the Great Wall; ④ crossing the Great Wall of the Ming Dynasty by vehicles; ⑤ displaying appliances that might damage the Great Wall of the Ming Dynasty; ⑥ activity implementation in untapped area; ⑦ other activities prohibited by the laws and regulations. The Wuhudun subproject boundary is at the closest 100m away from the Great Wall of the Ming Dynasty, which satisfies the needs of protection scope that is 50m away from the Great Wall of the Ming Dynasty and will not bring adverse effects on the relic under the strict management of construction. 97. Therefore, any impact on the Great Wall of the Ming Dynasty will not be brought only if the relevant laws and regulations can be complied with. The Wuhudun subproject is an ecological treatment process and the ecological shelter forest can play its role of sand prevention and governance, which will give full play for the Great Wall of the Ming Dynasty.

D. Pollution Prevention and Abatement

98. The subprojects will generate minor pollution and waste as a result of (i) construction machinery and vehicle emissions, including greenhouse gas emissions; (ii) construction camp wastewater; and (iii) construction camp general waste. Measures to prevent and reduce these pollution sources have been included in the project design and include:

1. Greenhouse Gas Emissions from Construction Machinery and Vehicle

99. Potential sources of greenhouse gas emissions from project works include machinery and vehicle exhaust. Proper maintenance of vehicles and diesel equipment, and avoidance of unnecessary running of vehicle and equipment engines will reduce emissions. No vehicle emitting black smoke will be allowed to operate on-site. Vehicle emissions must comply with PRC regulations (GB18352-2005, GB17691-2005, GB 11340-2005, GB3847-2005, GB18285-2005, and GB16297-1996). Regular inspection and certification system should be initiated. Based on past similar construction works, greenhouse gas emissions from vehicles and machinery are likely to be low.

23 Here the éarly’is defined as in War Dynasty (403-221BC) and Qin Dynasty (221-206 BC) and Song Dynasty (960-1279) of China. For the Great Wall of the Ming Dynasty involved in this Wuhudun subproject was much later than those. Since no very clear requirements on the Great Wall of the Ming Dynasty (1368–1644), more stringent requirements on early Great Wall are applied for better protection. 84

2. Wastewater from Construction Camps

100. Pollution relating to wastewater discharge from construction camps will be managed by use of portable sanitary systems. The wastewater will be collected, transported off site, and disposed of to the domestic sewerage system. 3. General Waste from Construction Camps

101. The subprojects will promote best practice waste management focusing on minimisation, reuse, and recycling, including (i) minimisation of solid waste generation through appropriate materials procurement, minimising generation of cut vegetation; (ii) reuse of cleared vegetation for ground cover; reuse of existing trellises and wire for new crops; composing organic waste, where appropriate; and (iii) use of multi-compartment collection bins to promote recycling of construction materials.

E. Cumulative environmental impacts

102. Cumulative environmental impacts will include a net improvement in water use efficiency and a net increase in the conversion of degraded lands to agricultural lands. As mentioned earlier, the subproject areas have obtained water irrigation quotas of Yellow River based on conventional flooding. However, all the subproject areas will apply drip irrigation based water-saving technology, by which water consumption is only about 1/3 of the conventional flooding irrigation for a same land area, thus will save water resources. Water savings achieved by the subprojects will probably be used in the future for expanded agricultural production, and this will probably cause the expanded use of agricultural chemicals. This issue is addressed in the updated EMP through the development of an extensive farmer training program to increase the efficiency of chemical use, improved application rates, and the use of organic fertilizers (Section F of EMP).

103. Ningxia has relatively large reserve land resources in China. To solve the problem of water resources will enable the wasteland changed into fertile farmland. Although the proposed subprojects operation will increase water consumption due to development of wasteland, through use of water-saving irrigation method, with minimal resource cost, the proposed subprojects will increase vegetation coverage, conserve soil and water, eventually improve local ecological environment. The proposed subprojects will promote the development of intensive agriculture, increase output of per unit area and farmers’ income. In the long run, to broader context, with the improvement of China's overall ecological environment, especially the ecological protection and restoration of the upper reaches of the Yellow River, water will gradually be increased from the upper reaches of the Yellow River, which will have a positive long-term cumulative effect. 7.3 Environmental Impact and Mitigation Measures during Operation Phase

104. Expansion of Agricultural Land Area.The primary potential adverse impact associated with the proposed five components’ operational phase relates to the expansion of agricultural activity by a net area of 1,473 ha. On 13 February 2017, Binghe New Distict Adminstraition Commission issued a land approval for the Binggou eco-agricultural water-saving and comprehensive demonstration subproject and Wuhudun water-saving irrigation demonstration subproject which are untapped sandy and grass land. The site of Ma’anshan characteristic agricultural demonstration zone subproject belongs to state-owned land, which land use agreement was signed in July 2014. Besides, upgrading 19.7 km of existing agricultural gravel roads in Hongsipu vineyards are located within the original vineyards established under the project; and replacing 666.7 ha of Chinese dates 85

with 666.7 ha of yellowhorn orchards in Tongxin County is at same location within same scope as the original IEE dated September 2012. So the land impacts of these two subprojects have been considered in the original IEE. While the project will result in a reduction of fertilizer, pesticide, and herbicide use on existing agricultural land within project sites, the expansion of new agricultural land will see fertilizer, pesticide, and herbicide use expand into new areas where it was not applied previously. If the agricultural chemicals use is carried out in accordance with the principle promoted by this project, the potential for adverse impact is likely to be small. Adoption of recommendede innovative technologies and approaches, such as tunnel or recycling sprayers; improved spray nozzle design; and orientation, will further mitigate the potential for impacts.

105. Appropriate application of low-toxicity pesticides (according to International Code of Conduct on the Distribution and Use of Pesticides (2002); FAO Guidelines on good practice for ground application of pesticides (2001); FAO Guidelines on standards for agricultural pesticide application equipment and related test procedures (2001); and FAO Guidelines on minimum requirements for agricultural pesticide application (2004); and Pesticide Management Measures in Ningxia Hui Autonomous Region, issued by Ningxia Autonomous Region Agriculture and Animal Husbandry Department on March 1, 2006), and high efficiency fertilizers(such as organic or compound, according to Regulations on the Administration of Fertilizer Registration issued by Ministry of Agriculture of the People 's Republic of China on July 1, 2004), particularly if applied as dissolved solution through the drip irrigation system, is unlikely to result in adverse impacts. Similarly, use of an integrated pest management program will significantly reduce the potential impact from over use of pesticides (according to GB 2763—2014, National food safety standard--Maximum residue limits for pesticides in food and a series of lists of Prohibited and Restricted Toxic Chemical Pesticidesetc issued by the Ministry of Agriculture24.). According to the plan of Ministry of Agriculture, China will achieve the goal of zero growth in fertilizer use by 202025.The proposed subprojects will promote fertilizer efficiency and reduction, pesticide reduction and control26, and actively explore output efficiency, product safety, resource conservation and environment-friendly modern agricultural development model. The main measures will include promotion of high-performance slow-release fertilizers with conservation tillage, straw returning, applications of formula fertilizer and organic fertilizer, drip irrigation, water and fertilizer integrated irrigation technology; and to use gypsum and other conditioning agent combined with engineering measures to improve saline soil. Capacity building and training will be an important aspect of ensuring appropriate use of agricultural chemicals; and therefore, mitigating the potential impacts associated with expanded areas of fertilizer, pesticide, and herbicide usage.

106. Other operational impacts from Binggou subproject and mitigation measures ⑴ Exhaust The exhaust generated during the operation period of the Binggou subproject area is mainly biogas boiler gas, the odor produced by pretreatment workshop and the fugitive odor caused by the biogas plant area.

24 Including but not limited to the following: Announcement No.199th of the Ministry of Agriculture; Announcement No.274th and No.322nd of the Ministry of Agriculture; Announcement No.1157th of the Ministry of Agriculture; Announcement No.1158th of the Ministry of Agriculture; Announcement No.1586th of the Ministry of Agriculture; List of prohibited and restricted toxic chemicals in China(first batch, 1998) ; List of prohibited and restricted toxic chemicals in China(second batch, 2005); Announcement No.194th,and 199th of the Ministry of Agriculture; Announcement No.199th and 1586th of the Ministry of Agriculture; Announcement 1586th of the Ministry of Agriculture; and Announcement No.274th and 1586th of the Ministry of Agriculture. 25 http://www.moa.gov.cn/zwllm/tzgg/tz/201503/t20150318_4444765.htm 26 Production and sale of organic fertilizer is duty-free, and sale of imported pesticides and fertilizer applies tax reduction.List of the relevant policies (issued by State Council and Minstry of Finance) please see http://naes.org.cn/article/23691. 86

① Boiler flue gas The subproject equips biogas boiler with 1t/h to provide heating and calescence and heat preservation for the entire anaerobic system. According to the thermal load needed by the subproject, the biogas boiler will provide service of 3 hours on average with 120m3/d of biogas consumption. The waste gas produced by biogas is mainly boiler fuel gas and the pollution factors are SO2、NOx. The biogas is clean energy with similar characteristics of natural gas. As it contains a small amount of hydrogen sulfide, the biogas smells slightly. The calorific value of biogas is 3. 3 20800~23600KJ per 1m The purified biogas contains little H2S（H2S≤20mg/m ）. Hereby the evaluation is calculated based on 20mg/m3 . Based on the regulations of Emission Standard of Air Pollutants for Boilers (GB13271-2014), the excess air coefficient is 1.2. The formula is as follows:

2H2S+3O2=2SO2+2H2O

Oxygen accounts 21% of the air,and the largest emission concentration of SO2 from waste gas after burning: (20×64÷34)mg/m3÷[1+（1.5÷21%）×1.2]=3.93mg/m3； According to the Handbook of Generation and Discharge Coefficient of Industrial Pollution Sources (2010 Amendment) 4430-Generation and Discharge Coefficient Table of Industrial Boilers—Generation and Discharge Coefficient of Natural Gas Stove, the industrial waste gas is 136259.17 biao m³ per 10,000 m³ of raw materials and the generation and discharge coefficient of nitric oxide is 18.71kg per 10,000 m³. After calculation, the total emission amount of boiler waste gas is 1,021.9m3/h and 3 emission amount of SO2 is 0.004kg/h（0.006t/a）with 3.93mg/m of emission concentration. 3 The emission volume of NOx is 0.14kg/h（0.204t/a）with 137mg/m of concentration. The boiler waste gas is directly emitted through the 10m of stack. ② Odor from pretreatment workshop The pretreatment of workshop is internally equipped with feedstock pond, manure pond and homogenate pond. The waste gas is eliminated through biological filtration pond (odor control system). The exhaust pipe will be set up at the top of pretreatment workshop. The exhaust gas will be pumped from negative pressure fan to biological filtration pond. The major components of repugnant pollutants produced in workshop are H2S、NH3. The waste 3 3 3 gas volume is 2,000m /h with 39mg/m of H2S and 60mg/m of NH3 which will be pumped through 15m of stack after treatment in biological filtration pond (90% of removal efficiency of H2S 、 NH3). The emission concentration of pollutants: odor concentration<2,000 (dimensionless), H2S：3.9mg/m3，NH3 ：6mg/m3;rate of emission: H2S 0.14kg/h、 NH30.22kg/h. The relevant requirements of Table 2 in the Emission Standard of Odor Pollutants (GB14554-93) have been satisfied. ③ Fugitive gas Storage pool of biogas slurry and stench produced by drying bed are the fugitive gas. The major components H2S、NH3 are the fugitive non-point source emission. Based on the comparison of generation source strength for repugnant pollutants and the features of the subproject, the qualitative analysis only will be conducted for the evaluation. Foul gas will exert an influence for the surrounding environment. Therefore, to minimize the impact of stench from pollution source, the subproject will fully utilize the idle land to plant trees and sprinkle deodorant, which enable the emission of NH3、H2S to meet requirements of Emission Standard of Odor Pollutants (GB14554-93). 87

④ Wastewater

The wastewater generated in the subproject area includes the waste water produced by the dehydration process in the biogas production process, the drainage of the softened water system, the boiler sewage and the domestic sewage generated by the farmer field training school. After calculation, the waste water produced from gas-water separation process is 1.0m3/d (365m3/a), the drainage of the softened water system 0.6m3/d (219m3/a), boiler blow-down wastewater 0.2m3/d (73m3/a), and domestic wastewater 166m3/a.

The major pollution factors in the domestic waster are COD、BOD5、SS、NH3-N etc.. There is no other pollution factor in the water softening devices and boiler drainage except for saliferous factor. In addition, the scarce water can be used for dust suppression for plant roads after converging into collecting basin. The generation volume of domestic water is 166m3/a with major pollutants of COD、BOD5、SS and NH3-N which will be pumped into waste pool through sewer line after the treatment in biogas fermentation system.

Pollutants generated during operation period are mainly to influence the groundwater environment by waste water infiltration. Groundwater contamination pathways will include feed tank, waste pool, homogenization pond, biogas slurry and residue pond, drying bed, collecting tank for filtered liquid and open trench for waterline; Slurry pipelines and contaminated groundwater from leaked sewer pipeline.

As for the environmental threat posed by groundwater, opeartion unit will take following anti-seepage measures.

① selection of high quality equipment and fittings, and to strengthen the daily management and repair and maintenance work to prevent and reduce the occurrence of leaking phenomenon;

② Double anti-seepage treatment of feed tank, waste pool, homogenization pond, biogas slurry and residue pond, drying bed, collecting tank for filtered liquid and open trench for waterline. Both main anti-seepage layer and sub-antiseepage layer use nonwoven geotextiles + HDPE film whose thickness is no less than 1.5mm. The specifications of geotechnical cloth is no less than 600g/m2. The bottom pavement will compact soil layer. The filtration coefficient of impervious barrier is ≤10-9m/s after taking measures.

In conclusion, on the premise of seepage prevention of production equipment workshop, sewage transmission and storage area, the management should be strengthened to minimize the impact on the regional groundwater.

⑷ Solid waste

The major solid waste include: 28t/a of the waste branches from the trimming of ecological shelter forest (large seedlings and trees should be properly trimmed after planting to cut off broken or dead branches and some leaves to ensure healthy growth and beautiful tree shape), 4t/a of rotten fruit, 1t/a of agricultural plastic sheeting residue, waste package bag of organic fertilizer in solar greenhouse and cold tents, 2t/a of household garbage from farmer filed school and biogas engineering.

The proposed subprojects will hire local farmers. Waste branches and leaves will be recycled by farmers for fertilizer, feed or fuelwood, and will not affect the surrounding environment. Subproject operation process should strengthen the training of farmers in the subproject area so that farmers recognize the influence of the residual plastic sheeting for agricultural production, and will take the initiative to pick up, collect, and clean plastic film to reduce the residual amount in the soil, especially in the poor areas. But the quality of plastic sheeting, agronomic techniques and the recycling rate of plastic sheeting should be further improved to ensure the sustainable use of agricultural production. Residual artificial plastic sheeting picking up, cleaning up, and collection will be recycled by waste materials recycling companies on a regular basis. Local government has developed a comprehensive program to measure progress towards monitoring and enforcement measures for plastic film recycling. According to Views On The Implementation Of Agricultural Residue Film Recycling, Notice On The Implementation Of Agricultural Residue Film Pollution Control Work Program and Implementation Opinions on Prevention and Control of Agricultural Non-point Source Pollution27 issued by NHARG in 2013~2016, agricultural film recycling rate will be achieved no less than 85% by 2020 in NARG. According to the above policies, the proposed subproject areas have established a sound recycling system. In each subproject county/district, a leading group on agricultural film recycling is headed by the county/district deputy mayor, and includes finance, agriculture, animal and husbandry, discipline inspection and other department heads and township leaders as members of the leading group. A special recycling program has been developed, and a recycling system has been basically built up, with the establishment of agricultural residual film recycling outlets and agricultural residual film processing plants. Importantly, agricultural residue film recycling has been included in the local government fiscal budgets. In the proposed subproject areas, local government provides subsidies by agricultural residual film for money (such as farmers get CNY0.8 for 1 kg of residual film) or trade-in (such as farmers get 1 kg of new film for 2 kg residual film). Besides, a strict monitoring and enforcement regulatory system has been set up. Ningxia established double-entry mechanisms for three indicators including: (i) film area vs amount of film, (ii) recycling of residual film area vs amount of residual film collection, and (iii) residual film sales vs processing28.The local government issues special bills with four forms for residual film recycling, respectively by the recycling enterprises, farmers and government, retained as the basis for residual film collection and payment of subsidies. Local agriculture and animal and husbandry departments also joint the finance, auditing and other departments to inspect and check residual film recycling and processing from time to time. In each processing plant, surveillance camera is installed. On the 5th day of each month, the residual film processing plant should report the government data on recycling, processing, sales and electricity consumption and other production information.

In addition, the waste package bag will be directly recycled by waste materials recycling companies after farmers’ use and will not be thrown in the field. ⑤ Household garbage The household garbage is 2.0t/a and will be processed by local environmental sanitation department after collection.

27 http://www.nx.gov.cn/gk/zcgwj/nzb/135446.htm 28 http://district.ce.cn/zg/201609/02/t20160902_15517091.shtml 89

In addition, the precipitation of sediment in impounding reservoir is good soil fertilizer which can be used for farmland fertilization. ⑸ Environmental risks The biogas from biogas storage and production belongs to combustible material and the leakage of methane in the biogas can make people suffocate. Therefore, the environmental risk exists during the project operation. Mitigation measures include strengthen maintenance to prevent gas leakage or fire, strictly enforce safety management regulations strengthen management, as far as possible to minimize risk. Emergency respondness plan should be formulated. 107. Other operational impacts from Wuhudun subproject and Ma'anshan subproject. The major pollutants generated in the operation period of Wuhudun subproject is the waste branches from trimming of ecological shelter forest with 4t/a. The major pollutants generated in the operation period of Ma’anshan subproject is the 20t/a of waste branches from trimming of ecological shelter forest, eco-economic forest and seedling cultivation base, excreta from eco-aquiculture area.

Ma'anshan subproject eco-aquiculture area 108. Ma'anshan subproject eco-aquiculture area will procure 1,000 cattle, 2,500 sheep, 10,000 chickens

109. Environmentally sustainable livestock production. Measures for efficiency of water and energy use, as well as product testing and monitoring to improve food safety and quality, are part of project design for the Ma'anshan subproject eco-aquiculture area. Based on discussions with the PMO, the IA, and the DI team, Ma'anshan subproject eco-aquiculture area will be sited, designed, and operated to minimize the use of external resources (e.g., water, energy, chemicals) and to maximize recycling and reuse of its waste products. Simple monitoring on water and energy resources, waste treatment, and expenditure on veterinary drugs was developed to measure progress towards environmental sustainability of the Ma'anshan subproject eco-aquiculture area and is described in the updated EMP (Appendix A). The loan implementation environmental consultant (LIEC) will assist the IA to monitor. Monitoring results will be included in progress reports to ADB.

110. The location of the livestock raising subcomponent of the Ma'anshan subproject eco-aquiculture area are in compliance with the national technical standardof preventing pollution for livestock and poultry breeding which requires a 500-m separation between intensive livestock enterprises and residential areas (Technical Specifications of Livestock and Poultry Breeding Pollution Prevention (HJ/T81-2001). This will ensure that sensitive receivers are sufficiently distant from the developments not to be impacted by construction noise and dust, and by operational noise. No residential area is located within a 500-m radius of the Ma'anshan subproject eco-aquiculture area.

111. Resource use and reuse. The design of the Ma'anshan subproject eco-aquiculture area incorporates features to avoid or reduce environmental impacts and enhance sustainability. This is largely due to the progress the PRC’s intensive livestock industry has already made towards an efficient business model where resource inputs are minimized and reuse of waste maximized. Design features outlined in Chapter IV (Descriptions of the Proposed Scope Changes) include adoption of water use efficiencies, dry manure handling (reducing water use by avoiding washing out of wastes), and conversion of manure and solid residues to fertilizer.

112. Facilities for the effective treatment of animal wastes (small volume) are included as integral parts of the proposed subproject design. The excreta will be directly used as fertilizer after the processing in the integrated water and fertilizer apparatus.

113. However, site-related construction impacts relating to the use or pollution of water resources, haulage and stockpiling of construction materials’impacts to the biological environment, impacts to physical cultural resources, and socioeconomic impacts are assessed above Chapter 7.2. During operation, there is a potential for negative environmental impacts associated with (i) the exploitation of water resources; (ii) the provision of adequate treatment for wastewater dischargeand/or use; (iii) solid waste; and (iv) odor and safety of air emissions.

114. Exploitation of water resources. For water use, a water balance assessment was conducted for Ma'anshan subproject as a whole, in which water exploitation rate is available. For this subproject, water status will be measured to indicate the ability of the water resource to provide a sustainable supply (see below and Attachment 2, Regional Water Source Analysis). Designed water consumption of the project is 85,420 m3/d at Ma'anshan subproject, , including 34,320 m3 for irrigation and 51,100m3 for livestock. All of this volume will be drawn from water source via on-site pump houses and pipelines. Besides, the proposed Ma'anshan subproject will install water meters to measure all water entering the livestock production process from all sources (pipelines, wells,and local reservoir)and report water consumption quarterly.

115. Wastewater and impact on surface water. At Ma'anshan subproject eco-aquiculture area, livestock and domestic wastewater will be mixed and treated together. The dry manure will be separated from the process wastewater. From there, the wastewater will be drawn off and directed to a storage tank for managed distribution as liquid fertilizer; and the settled residue will be sent to the organic fertilizer processing apparatus. Specifications for application of the liquid fertilizer to land have been estimated and will be controlled to ensure that local soils and seasonal crop demands are considered. This will ensure that excess fertilizer does not contaminate groundwater in the areas of application.

116. Odor and safety of air emissions. In addition, the odor, mainly from the animals’ houses, will be generated in the eco-aquiculture area. The measures such as setup of green belts, the treatment of excreta will be taken to reduce the impact for surrounding areas.

117. Solid waste disposal.The levels of solid waste estimated to be generated at the Ma'anshan subproject and planned disposal measures are shown below. It is concluded that during project operation, solid waste generated in the process will be properly handled with appropriate facilities on-site and arrangements for other wastes off-site. Documentation of these arrangements and the capacity of off-site waste handlers to accept waste is a requirement of the EMP.

Table: Solid Waste Generated and Disposal Measures Waste Planned Disposal

Livestock manure To produce organic fertilizer and reuse in the supproject area

Solid–liquid separation Dead livestock bodies On-site sanitary landfill

Veterinary waste for disease prevention Stored and removed by qualified processing company

Waste from feed processing To produce organic fertilizer and reuse in the supproject area

Domestic waste To be treated by the Ningxia local sanitation department

118. Groundwater pollution. To prevent the movement of waste potentially infiltrating the soil and contaminating groundwater, the following measures required by the technical specifications of livestock and poultry breeding pollution prevention will be implemented (Technical Specifications of Livestock and Poultry Breeding Pollution Prevention (HJ/T81-2001)). These are (i) separation of the stormwater drainage and the sewerage collection systems, and the storage of stormwater separately for site use; (ii) purpose-built sewage collection and distribution system in the subproject site complying with level requirementsof the water supply and drainage engineering structural design specifications; (iii) prohibition of open trenches; and (iv) drainage vessels with anti-seepage measures or cement pipes to convey wastewater and prevent overflow and infiltration.

119. Operational noise. Operational noise from both farm developments by the Ma'anshan subproject eco-aquiculture area will mainly arise from the running of blowers, water pumps, fans,and solid–liquid separators. The noise levels at the site boundaries, further attenuated by distance. Predicted noise levels at each of the subproject boundaries are able to meet the Class 2 of the emission standardfor industrial enterprises’ noise at boundary and will cause no impact to environment.

120. The ecological impact of agricultural film using. Using agricultural film will improve livability and quantity of plants but will lead to white pollution. Meanwhile, the toxic materials will be produced after agricultural film is broken down, which will pollute soil and impact plants. The subproject will conduct capacity building for local famers during operation period, improving their consciousness to the impact of residual agricultural film for production, taking active actions to restore and clean agricultural film and reducing agricultural film usage. What’s more, training them to use degradable agricultural film can reduce ecological impacts. Agricultural film with good quality and better agronomic technology will be selected to improve recycable rate of agricultural film and promote sustainable agricultural production according to the Views on the Implementation Of Agricultural Residue Film Recycling and Notice On The Implementation Of Agricultural Residue Film Pollution Control Work Program issued by NHARG in 2013. Residual agricultural film shall be collected and sold to nearby professional recycling companies29 on a regular basis.

121. Waste management arrangements for the yellow horn plantation. Under the proposed Binggou and Tongxin subprojects, there will be about 576 ha of yellow horn plantation. The water consumption in the two subproject planting areas is mainly for irrigation water, at a quota of 750m3/ha per year (dry land), with an area of 576ha, so the irrigation water demand is 432,000m3/a, and all the irrigation water will be absorbed by the crop and soil in the planting areas. In addition, the total domestic water consumption of the subproject planting areas is 1,016m3/a, and the generated wastewater will be 813m3 / a. The main pollutants of domestic wastewater will be COD, BOD5, NH3-N, SS, and etc., after septic tank precipitation treatment, then will be reused for planting area irrigation. The total amount of domestic solid waste generated by the subproject planting areas will be 20t/a, and the garbage bins will be installed in the subproject planting areas to collect garbage. Plastic film wrapped will be all abandoned at the end of the planting period, and sent to local residual film collection stations, at an amount of 6.3t /a (please refer to para. 106 below). Fertilizer bags amounting to 0.08t / a will be recovered by the manufacturers. Referring to the similar projects, waste crops residues, weeds and waste fruit production, estimated at about 42t /a, will be collected and sold to local farmers in a unified manner.

29 By June 2016, the NHAR had built a total of 217 residual agricultural film recycling network, 29 residual agricultural film processing enterprises; set up 86 mechanical recycling team; and purchased 1260 units of recycling machinery. In 2015, the NHAR recycled a total land area of 1.80 million mu of residual film, at 17,884.8 tons, processing plastic particles 3,022.2 tons, with a recycling rate of 90%. It is estimated that through extensive use of plastic film and carrying out residual film recycling, crop outputs are generally increased by 30-40%, while environmental pollution is reduced by 60% -70%. Farmers sell residual film at CNY 1,000 per ton. This has played a dual effects of increasing efficiency and promoting environmental protection.( http://www.xinhuanet.com/) 92

122. Due diligence on water and air pollution caused by extraction and processing of yellow horn oil. The proposed Binggou and Tongxin subprojects will only include yellow horn plantation. No cooking oil processing plant/facilities will be established under this Project, instead, all the yellow horn will be sold to outside business for processing and extracting cooking oil. According to the study on oil extraction from Xanthoceras sorbifolia Bunge (yellow horn)，Xanthoceras sorbifolia seeds were used as raw materials，the aqueous enzymatic method was applied to eatract its seed oil，which will provide the scientific reference for promoting the rational development of the woody oil crops．The effects of solid ／liquid ratio，kinds and amount of enzyme，enzymatic hydrolysis temperature and time were discussed by single experiment and orthogonal experiments The optimum conditions were obtained as follows：solid／liquid ratio 1：5，amount of enzyme 1．5%，enzymatic hydrolysis temperature 50°C，enzymatic hydrolysis time 5h．Under the optimum conditions， the average extraction yield of the oil reached 65.10%．The extraction technology has good prospects for industrial application，and has a certain guiding significance to the rational development and utilization of the plant resources.30 According to "National Energy Forest Construction Planning" and "Biodiesel Raw Material Forest Base Eleventh Five-Year Program", yellow horn is promoted for biodiesel raw material forest base in Inner Monglia Aunomous Region, Liaoning Province and Xinjiang Ugur Aunomous Region.31 A study shows some successful cases in northern and northwest China, such as Inner Monglia Aunomous Region, Jilin Province and Qinghuandao City in Hebei Province32.Refering to other similar projects on extraction and processing of plantation (including oliver walnut /peanut/soybean/33) cooking oil, the cleanup wastewater will be pretreated by oil separator and precipitated then reused for landscaping irrigation. Other processing wastewater will be pretreated by in-plant wastewater treatment station before discharge into municipal pipeline network. Dust will be collected through suction device then released by exhaust. The odor or irrigating gas will be adsorbed through gas collection system and controlled by good equipment operation and maintenance. Solid waste will be properly stored and treated or reused for fuel, animal feed or fertilizer. No major water and air or other characteristic pollution issue is identified through the above literature research.

123. In all, minor adverse environment impact will occur during the operation period, bur it can be mitigated through reasonable good O&M practices identified in the EMP.

30 Technology Research of Aqueous Enzymatic Extraction of XanthocerasSorbifolia Oil, WANG Rui TONG Ling CAO Hui, Journal of Weifang University, 2016, 16(2). 31Problems and Countermeasures of Forestry Biodiesel Development in China, Li Yun, Ao yan, Forest Resource Management, June 2016 No.3 32 Study on Developmen of Tendency and Current Situation of Forestry Biomass Energy, GAO Zhu et al, , Journal of Anhu iA gr.i S c.i 2011, 39( 4): 2126- 2128, 2137. 33 For example, please refer to the EIA of WB financed Guizhou Rural Development and Poverty Alleviation Project http://documents.worldbank.org/curated/zh/236881468262755029/Environmental-impact-report 93

Chapter VIII Information Disclosure and Public Consultation

8.1 Legislative Framework for Public Consultation

124. Public participation and consultation in the evaluation of project design, planning, and implementation is an important part of environmental impact assessment. It can directly reflect the public‘s perceptions on environmental quality in the project‘s area of influence. Relevant provisions in the Environmental Protection Law of the PRC and the Regulations on the Administration of Construction Project Environmental Protection (Order of the State Council, No. 253) require that ―Environmental Impact Report formulated by construction unit shall be in accordance with relevant laws to solicit the opinions of units concerned and inhabitants of project construction site." ADB‘s environmental guidelines also have detailed and strict requirements on public participation and consultation. The public consultation processes for this project, therefore, follow both the PRC requirements and the ADB requirements. 125. The PRC‘s EIA requirements and attendant public consultation requirements differ among the subproject sectors. The development of agricultural, forest, and water conservancy need the simplified process. An integral part of the EIA procedure is two rounds of public consultation, involving information dissemination, or questionnaire exercise; and an analysis and incorporation of comments.

8.2 Information Disclosure Activities

126. Information dissemination. In accordance with the requirements of the PRC‘s Interim Guidelines on Public Participation in Environmental Impact Assessment (2006), public notices were issued. The public notices were posted in prominent government website (Yinchuan Municipality Department of Review and Approval (Department of Environmental Protection)) twice, once at submission date, once before formal approval. The notices included a detailed description of the planned developments and invited the views of residents (through e-mail, letters, telephone, and other forms to the construction unit and the EIA unit). No feedback was reported from the public.

http://xzspfwj.yinchuan.gov.cn/xzweb/oa!web_queryArticle.do?source=%22%E7%8E %AF%E4%BF%9D%E5%9B%AD%E6%9E%97%E6%B0%B4%E5%8A%A1%E5%A4%8 4%22&sid=6480&p=7#content Figure 8- 1 1st round information disclosure on government website (1 Apr 2017)

http://xzspfwj.yinchuan.gov.cn/xzweb/oa!web_queryArticle.do?source=%22%22&sid =6642&p=21#content Figure 8- 2 2nd round information disclosure on government website (17 Apr 2017)

127. Future Information Disclosure. Environmental information on the project was and will be disclosed as follows: (i) the EIA reports are available for review in Yinchuan Municipality Department of Review and Approval (Department of Environmental Protection); (ii) the project is disclosed on ADB‘s website; and, (iii) environmental monitoring reports will be available for review at the the Provincial Project Management Office (PPMO), and also disclosed on ADB‘s website.

8.3 Public Consultation Activities

128. Questionnaire survey, consultation meeting and responses. The public consultation was conducted during 3 -8 Mar 2017. During and after the exhibition period of the Public Notices, the IAs and domestic EIA institutes randomly distributed questionnaires among the residents and the public within the subprojects‘ area of influence. By random questionnaire distribution and informal consultation meeting, a total of 100 participants attended (Table 8-1) including representatives of government agencies, affected residents and other concerned stakeholders from the cities, and 100 consultation question lists were distributed. By 8 Mar 2017, 97 question lists (97% portion) had been back. The scope of public consultation should cover most levels to confirm the equality and full participation for the affected persons (APs). The persons who are surveyed mainly live in Hengcheng, Binhe new district, Linhe town and Yinchuan Municipality. Considering the main APs during the construction will be the nearby agricultural persons, the survey is conducted in the nearby villages and companies around the villages. Furthermore, public consultations in form of face to face meetings on environmental matters were held with government departments and institutions 95

(see below Table 8-2). They were chaired by the IAs respectively, and all supported by the domestic EIA institute.

129. The breakdown of comments and responses to the questionnaires is described in considerable detail in the TEIAR. In general, the respondents in the public consultation supported the construction of the three new subproject sites in Yinchuan Municipality. They believed that the proposed three new subprojects in Yinchuan Municipality would improve the existing environmental quality and living amenity, and they would support their implementation on condition that their reasonable requirements and recommendations were satisfied. Table 8- 1 Information of surveyed persons statistical results Number of Ratio ( % ) Features people

Male 50 51.55

Number of Female 47 48.45 surveyees otal 97 100.00

Below 20 6 6.18

21 - 30 years old 9 9.28

Age distribution 31 - 40 years old 48 49.48 31~40 years old

41 - 50 years old 34 35.06

University and college 35 36.08

High school and college 15 15.46 Education level Junior high school 44 45.36

Primary school or less 3 3.1

Civil servants and public 19 19.58 institutions

Worker 18 18.55

Farmers 11 11.34 Occupational structure Teacher 14 14.43

Self-employed workers 8 8.25

Student 6 6.18

Other 21 21.67

Source: domestic TEIAR Table 8-2 Information of surveyed government departments and institutions No. Surveyed government departments/institutions 1 Binghe New District Government (for Binggou subproject) 2 Xiaokongming school (for Wuhudun subproject) 3 Hengcheng village committee (for Wuhudun subproject) 4 Hengchenghuayuan community committee (for Wuhudun subproject) 5 Linghe town government (For Ma’anshan subproject)

Table 8-3 Summary of Survey Results

Investigation content Comments Number of people Ratio ( % )

1 .Do you want to know the local Yes 92 94.84 characteristics of water-saving agriculture demonstration project implementation? No 5 5.16

Most satisfied 25 25.78 2 Are you satisfied with the status of the local Satisfied economy and the environment now? 58 59.79

Not satisfied 14 14.43

Air pollution 57 58.77 Water pollution 3 What’s the main environment problem 1 1.03 during the project site? Sound polution 1 1.03

Ecosystem 38 39.17

Construction period 80 82.48 4 What’s the disadvantage for the environment of the project. Operation period 5 5.15

Both 12 12.37

Wastewater pollution 1 1.03

Air pollution 60 61.86 5、Which environmental issue should be concerned during the construction? Sound polution 30 30.93

Solid waste pollution 1 1.03

Ecological damage 5 5.15

Favorable 80 82.49 Unfavorable 6、What project impact will occur do you think 5 5.15 to the local environment? Both 10 10.30

Not clear 2 2.06

Can 85 87.63 7、Do you think whether the project can improve the income and livelihood conditions Can not 0 0 for the farmers? Unrecognizable 12 12.37

Can push 65 67..0 8 , Do you think this project will promote local Unrecognizable social and economic development? 32 33.0

Reduce 0 、 9 Do you support for project construction Stand by 97 100 after take society, economy and environment into consideration? Not support 0 0

Source: domestic TEIAR 130. Based on the Table 8-1 and Table 8-2, the public consultation has been supported by all surveyed persons in different levels, showing their strong consciousness and putting put their good comments and suggestion. As for the question ‘do you have some suggestion for

construction implementation and operation in environment aspect?’, the answers are as follow: (1) The proposed three new subprojects in Yinchuan Municipality will improve the development of local characteristic industry; hope the three new subprojects are completed earlier so that the local economy will be better. (2) The proposed three new subprojects in Yinchuan Municipality will benefit for ecological environment and will make full use of the local water resources; hope more investment and quicker progress for the proposed three new subprojects. (3) Deal with the issues related to the anti-pollution according to the TEIAR and support the development of local company during the operation period. In addition, the surveyed persons are all have high enthusiasm for proposed three new subprojects construction in Yinchuan Municipality and know clearly with high environment protection consciousness that the proposed three new subprojects will benefit the local economy and environment. 131. The interviews with 5 concerned government departments and institutions (Table 8-2) showed the 100 percent positive feedback which clearly indicated the support of concerned local government and community administrations to the proposed subprojects implementation. All of the consulted relevant government agencies and institutions expressed their strong support to the proposed subprojects and their willingness to undertake the corresponding responsibilities for the proposed subprojects environmental management.

132. Major environmental concerns expressed by the potentially affected persons included: (i) Efficient water-saving projects will play an important role in promoting local characteristics development so hope the proposed subprojects can be built as soon as possible to promote local economic development; and (ii) to pay attention to conserve ecology and vegetation during construction period. Meanwhile, concerning environmental approval by environmental authorities, the consulted public requested that the national approval procedures must be strictly respected and followed, and the environmental management authorities should play an active role in the construction supervision in order to take preventative and control measures against the environmental issues associated with the proposed subprojects. Suggestions and concerns of the consulted public have been incorporated in the EIA includng EMP and project design.

8.4 Grievance Redress Mechanism (GRM)

133. Grievance Redress Mechanism (GRM). The original GRM in the IEE(dated September 2012) suggests a Project GRM framework. At inception stage of loan implementation, the grievance redress mechanism (GRM) was established in compliance with ADB‘s SPS (2009) requirement to prevent and address community concerns and assist the Project to maximize environmental and social benefits. The GRM complies with the existing PRC legislative framework. A Public Complaint Unit (PCU) was established, coordinated by the environment and social management unit (ESMU) of the PMO. The PCU will instruct contractors and construction supervisors if people complain about the Project. The PCU will coordinate with the local government and the EPB, if necessary, and is supported by the environmental consultants of the loan implementation consultancy services. So far, the Project GRM is effective and no environmental complaint has been received since the project started.

134. The GRM was presented and discussed with potentially affected persons during public consultation.The original GRM in the IEE(dated September 2012) remains valid and will be used for these proposed five subprojects. Eye-catching public notice boards will be set at each site to inform on the purpose of the proposed five subprojects activity, the duration of disturbance, the responsible entities on-site (contractors, CSCs, IAs), and the project level 98

Grievance Redress Mechanism (GRM). Contact information of all GRM entry points and the Project Public Complaints Unit‘s (PPCU) will be disclosed on the construction site information boards. Consultation will focus on public complaints about public nuisances from construction activities, such as noise, odor nuisance, dust, traffic disturbance, as well as public concerns about the environment.

Chapter IX Environmental Management Plan, Monitoring Program

135. Since the proposed scope changes have identical institutional arrangements, anticipated environmental impacts and mitigation measures with the original alignment and the whole Project, the original Environmental Management Plan (EMP, 2007) will remain valid and still applicable to the proposed scope changes. However, due to location changes from the proposed subprojects, the new/unanticipated environmental impacts and corresponding mitigation measures, environmental monitoring program in the original EMP (2012) is updated for the new environmental sensitive receptors alongside the proposed subprojects. For details see the Appendix A.

100

Chapter X Economic Assessment

136. The proposed five subprojects will provide jobs opportunities for local people and promote the development of related auxiliary industries and services. This will improve those household’s living standards and income. The proposed five subprojects investments for improved water resource management will also provide livelihood benefits by reducing the direct cost of irrigation, promoting more sustainable land use and higher incomes, and providing agricultural training. Livelihood aspects of the proposed five subprojects are reported in the project social and resettlement reports, which conclude that the proposed five subprojects will have a positive effect on local livelihoods. For more details please see the Chapter 7.1.

137. The investment of environmental protection is RMB 64,152,100 yuan, accounting for 16.79% of total investment. The environmental protection investment is mainly used for the management of dust and noise, ecological protection and governance, biogas, etc. In addition, the environmental protection investment of the upgrading 19.7 km roads in Hongsipu vineyards and 666.7 ha of yellowhorn orchards in Tongxin will be CNY 0.0105 million and CNY 1.6725 million (estimated at 2.5% of subproject cost estimates) Table 10- 1 List of environmental protection investment No. Subproject Content Investment amount Proportion area (ten thousand yuan) (%)

Water-sprinkling and other dust-fall facilities in construction period 80.00 1.25

Noise reduction during construction 60.00 0.94

Biogas 343.65 5.36 Binggou Desert original ecological protection and 1 subproject management (911 mu) 1906.92 29.72

Ecological protection forest (2883 mu) 1538.37 23.98 Soil improvement and soil & water conservation (2000 mu) 320.00 4.99

Preparation of land (3142 mu) 302.16 4.71 Water-sprinkling and other dust-fall facilities Construction period 10.00 0.16 Wuhudun 2 subproject Noise reduction during construction 8.00 0.12

Ecological afforestation project (408 mu) 217.71 3.39 Water-sprinkling and other dust-fall facilities Construction period 30.00 0.47

Noise reduction during construction 15.00 0.23 Ma’anshan 3 subproject Preparation of land (1,000 mu) 240.00 3.74

Eco-green Project (2000 mu) 1093.30 17.04 Integrated water and fertilizer apparatus (3 sets) 200.10 3.12

4 Construction Environmental Supervision 50.00 0.78

Total 6415.21 100.00

Source: domestic TEIAR 101

Chapter XI Conclusions and Suggestions

138. The proposed supprojects are expected to provide environmental benefits including improved irrigation water use efficiency, reduced farmland soil erosion, reduced use of fertilizers and pesticides, reduced sediment runoff to surface water, and adoption of sustainable agricultural techniques. The overall outcome is likely to be reduced land degradation and increase water use efficiency. The proposed supprojects’ activities will also contribute to improved local livelihoods, through increased economic gains from yields of higher-quality and higher-value crops. Improved land, soil, and water management, particularly the use of organic fertilizers and more efficient use of agricultural chemicals, will presumably also benefit the health of local communities.

139. Based on published average rates for carbon sequestration for agriculture and forestry, the area of newly established desertec green fruits and vegetables planting, characteristic agriculture and forested shelterbelts proposed under the proposed supprojects will result in the sequestration of 1,815 tons of carbon dioxide per year34.

140. The proposed supprojects will help develop resilience against the impacts of climate variability on the agriculture sector, by providing local farmers with an option to adapt to the increasing scarcity of water resources.

141. The proposed supprojects risks include low environmental management capacity of the IAs and lack of environmental staff; temporary and localized adverse impacts on air, water, and acoustic environment during the construction phase; and, expanded use of agricultural chemicals in the operation phase, through the expansion of agricultural lands resulting in the project water savings.

142. Since this proposed scope changes have identical institutional arrangements, anticipated environmental impacts and mitigation measures with the original alignment and the whole Project, the original Environmental Management Plan (EMP, 2007) will remain valid and still applicable to the proposed scope changes. However, due to location changes from the proposed subprojects, the environmental monitoring program in the original EMP(2012) are updated for the new environmental sensitive receptors alongside the proposed subprojects. For details see the Appendix A.

143. The overall finding of the addendum and domestic TEIAR is that project risks will be adequately prevented, eliminated, or minimized through the effective and complete implementation of the updated project EMP.

34 Besides, the 533 ha of yellowhorn orchard (Xanthoceras sorbifolium Bunge) in Tongxin can bring sequestration to 2,059 tons of carbon dioxide per year. 102

Appendix A Environmental Management Plan

(Updated in October 2017)

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ENVIRONMENTAL MANAGEMENT PLAN (Prepared in July 2012, Updated in August/October 2017 and updates marked in red/blue)

A. Objectives

1. The objective of establishing an environmental management plan (EMP) is to propose appropriate mitigation measures, and recommend establishment of institutions or mechanisms to monitor and ensure compliance with environmental regulations and implementation of the proposed mitigation measures. Such institutions and mechanisms will seek to ensure continuously improving environmental protection activities during project preparation, construction, and operation in order to prevent, reduce, or eliminate adverse impacts.

2. The EMP includes (i) objectives, (ii) summary of impacts and mitigation measures, (iii) environmental monitoring and inspection, (iv) public consultations, (v) responsibilities and authorities for implementation, (vi) institutional strengthening and training, (vii) reporting and supervision, (viii) work plan, (ix) cost estimates, (x) mechanism for feedback and adjustment, and (xi) grievance redress mechanism. The EMP was reviewed and remained valid at the end of the detailed design in order to be consistent with the final detailed design.

3. In December 2016, the EA proposed to add three new subprojects (Binggou, Wuhudun, and Ma’anshan subprojects in Yinchuan Municipality) replacing some existing subprojects completed by government funds or without progress yet. For the existing Hongsipu subproject, a total length of 19.7km access road with asphalt pavement is proposed to newly add. For Tongxin subproject, 666.7 ha of Chinese dates orchards are proposed to replace with 666.7 ha of yellowhorn orchards, at same location within same scope as the original IEE dated September 2012. An environmental addendum is prepared on basis of the domestic TEIAR prepared for the three new subprojects in Yinchuan Municipality in September 2017. This EMP is updated in according with the environmental addendum.

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B. Summary of Potential Impacts and Mitigation Measures

4. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified by the domestic environmental impact assessment (EIA), as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table A1. The mitigation measures will be incorporated into the tendering documents (where appropriate), construction contracts and operational management plans, and will be undertaken by contractors, the implementing agencies (IAs) under the supervision of the provincial project management office (PPMO) and project implementing offices (PIOs) and the Ningxia Environmental Protection Department (NEPD) when necessary. The effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether they should be continued or improvements should be made. Improvements need to be confirmed through stipulated environmental management procedures.

5. National standards for air, water, and noise quality, emissions, and clearance of vegetation, will be used as the benchmarks for project monitoring during construction and operation, and are listed in Table A1.

Table A1: Summary of Potential Impacts and Mitigation Measures Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage A. Pre-Construction 1. EIA and Site selections The recommended sites/ Design Institutes, County and Feasibility routes for the individual EIA institutes, IAs District EPBs, Study subprojects were selected NWRD, IAs, Stage from various alternatives NEPD so as to minimize adverse impacts on the environment and land resources.

Engineering and Engineering and Design Institutes, County and technological technological alternatives EIA institutes, IAs District EPBs, alternatives were evaluated based on NWRD, IAs, pre-defined environmental NEPD and economic criteria.

Water extraction Obtain a water use permit IAs Local WRBs, permission for water input from local PPMO, LIEC Water Resources Bureaus –providing all details required for that application to the WRBs

Public consultations Several rounds of public EIA institutes, PPMO, county consultations have been PPTA and district EPBs, conducted on consultants, IAs ADB environmental issues, poverty, and resettlement during feasibility studies, and EIA and IEE preparations.

2. Design Updating EMP Mitigation measures EIA institutes, PPMO, county Stage defined in the EMP will be Design Institutes, and district EPBs reviewed, updated and PPTA incorporated into the consultants, IAs detailed design to minimize adverse environmental impacts.

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage 3. Due Noncompliance with Undertake due diligence IAs, IEMs, EMC PPMO, county Diligence EMP and EIA reviews of EIA documents and district EPBs requirements during and field inspections of construction works ongoing works, as listed in Table A2 – A7 in this EMP.

4. Bidding Bidding documents Environmental section and IAs, procurement PPMO, ADB and and provisions will be included agency Constructi contractors‘ qualificat in the bidding documents. on ions Preparatio Environmental clauses for n contractors in reference to this EMP and monitoring plan will be included in the construction and supply contracts.

The domestic EIA report, IEE report, and this EMP will be included in the contract documents

Environmental Contractors will be Contractors IAs, PPMO, operation and required to prepare an county and supervision manual environmental operation district EPBs and supervision manual, for approval by the IAs.

Complaints Establish a complaint and Contractors IAs, PPMO, information office or county and appoint a responsible district EPBs person and the grievance redress mechanism before starting construction.

Ensure that staff at the office is well trained to handle conflicts with residents from environmental impacts.

Environmental Environmental specialists NEPD, PPMO, PPMO protection training and/or officials from NEPD EMC will be invited to provide training on implementation and supervision of environmental mitigation measures to relevant persons, especially construction engineers and managers.

Engagement of EMC Prior to start of PPMO, a national PPMO, ADB construction, a national procurement environmental specialist management consultant will be engaged.

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage Engagement of IEMs Prior to start of IAs PPMO, county construction, IEMs will be and district EPBs engaged.

B. Construction Phase 1. Soil Excavation Use improved soil Contractors IAs, OEEs, IEMs, Erosion preparation methods PPMO including pit, strip, and anti-slope based on site condition.

Restricted works during dry season (September– June).

Preserve topsoil by excavating in strips and stockpiling. Confine stockpiled material with retaining bunds or walls to avoid loss.

Construct erosion barriers and temporary detention ponds or containment to control silt runoff as required.

Construct intercepting ditches to prevent outside runoff entering excavation stockpile sites, and divert runoff from sites to existing drainage or ponds.

Soil exposed for construction or field preparation will be stabilised as soon as possible, especially sites close to human residences and other sensitive receptors (e.g., schools, mosques)

Transport and All soils will be used as Contractors IAs, OEEs, IEMs, disposal of soils refill and landscaping PPMO materials on site.

Settling ponds will be built in construction sites. Soils in settling ponds will be cleared for use as refill materials.

Construction vehicles Straw or cloth will be laid Contractors IAs, OEEs, IEMs, at the entry/exist of each PPMO construction site to reduce soil loss from adherence to vehicles.

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage Tires of construction vehicles will be cleaned daily of soils

Exposed surfaces Within 1 week of refill and Contractors IAs, OEEs, IEMs, land leveling completion, PPMO re-vegetation with native trees and grasses will be undertaken.

2. Water Siltation in water If soil erosion mitigation Contractors IAs, OEEs, IEM, Quality bodies due to measures are effectively PPMO excavation implemented, siltation in Primarily water bodies will be relates to minimal. water quality in irrigation Wastewater from Portable sanitary systems Contractors IAs, OEEs, IEMs, canals and construction camps will be used on site. PPMO, county reservoirs Wastewater will be and district EPBs collected, transported off site and disposed of to domestic sewerage system.

Unauthorized discharge of wastewater into nearby water bodies will be prohibited.

3. Air Dust from crop and Vehicles delivering crops, Contractors IAs, OEEs, IEMs, Quality material delivery and equipment, and other PPMO, county construction vehicles material to the sites must and district EPBs be covered.

Dust from Materials storage sites Contractors IAs, OEEs, IEMs, construction sites must be 300 m from PPMO, county residential areas and and district EPBs covered or sprayed with water.

For Hongsipu subproject access road (19.7km), commercial asphalt will procured negating the need for asphalt mixing on construction sites. No asphalt production or mixing will be conducted onsite. The use of closed mixing asphalt road laying equipment is ideal.

Construction works must be stopped during strong wind (>40 km/hr)

Water will be sprayed on 108

Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage active construction roads and excavation sites twice a day.

Upon completion of civil works, all construction sites will be required to be re-vegetated with trees and grasses.

Dust from Roads used by contractors Contractors IAs, OEEs, IEMs, construction roads or suppliers vehicles will PPMO, county be kept clear of dust and and district EPBs mud. This will be monitored daily and cleaned as required.

Emissions from Vehicle emissions will Contractors IAs, OEEs, IEMs, vehicles and comply with PPMO, city and equipment GB18352-2005, county EPBs GB17691-2005, GB 11340-2005, GB3847-2005, and GB18285-2005.

Equipment and machinery emissions must comply with GB16297-1996.

A regular inspection and certification system will be initiated. 4. Noise Noise from Noise from equipment and Contractors IAs, OEEs, IEMs, equipment and machinery will comply with PPMO, county vehicles GB12523-2011. and district EPBs

Provide adequate route for large trucks to keep away from residential areas.

At construction sites within 500 m of the nearest habitation, noisy construction work will be stopped between 22:00 and 06:00 hours, or as agreed based on community consultation.

Community Interviews with residents Contractors IAs, OEEs, IEMs, complaints about living adjacent to PPMO, county noise construction sites will be and district EPBs conducted on a weekly basis to identify community complaints about noise, and seek suggestions from community members to reduce noise annoyance.

Community suggestions will be used to adjust work hours of noise-generating

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage machinery.

Given that many project sites are remote and with no settlements, noise monitoring is not considered necessary, as long as the above mitigation measures are properly implemented.

5. Solid Domestic waste from promote best practice Contractors IAs, OEEs, IEMs, Wastes construction camps waste management PPMO, county focusing on minimisation, and district EPBs reuse, and recycling

Minimisation of solid waste generation through appropriate materials procurement, minimising generation of cut vegetation

Reuse cleared vegetation for ground cover, reuse of existing trellises and wire for new grape crops, composing organic waste where appropriate, and use multi-compartment collection bins to promote recycling of construction materials.

6. Impact Vegetation Prohibit burning vegetation Contractors IAs, OEEs, IEMs, on Flora and residual bushes and PPMO, county grasses when clearing and district EPBs planting sites, in compliance with PRC Water and Soil Conservation Law (2011) and PRC Forest Fire Prevention and Control Regulation (2008)

Only cut grasses or bushes which are obstacle to planting activities and tree growth in patches or strip shape and pilling them up between planting rows or holes to allow them to naturally decay.

When clearing planting sites in patches or strips on land with slopes of more than 15 degrees, every 30 m clearance cutting should allow a 3 m contour strip to allow for the original vegetation.

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage Preserve existing vegetation where no construction activity is planned or temporarily to preserve vegetation where activity is planned for a later date.

Rehabilitate disposal and borrow sites with equivalent or improved native vegetation cover.

7. Social Traffic jam or block Build interim roads. Contractors, IAs OEEs, IEMs, and PPMO, city and Cultural Select transport routes to county traffic Considerat reduce disturbance to bureaus ions regular traffic.

Divert traffic at peak traffic hours, and reinstating the area to its original condition on completion of construction.

Community health Erect construction Contractors, IAs OEEs, IEMs, and safety signages/billboards, which PPMO, city and include construction county traffic contents, schedule, bureaus responsible person and complaint phone number, at the entry to each construction site and construction staging area.

Inform residents and businesses in advance of the road improvement activities, given the dates and duration of expected disruption and make aware of the project GRM.

Place clear signs at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc. and raising awareness on safety issues.

Make all sites secure, and discourage access by members of the public through appropriate fencing/barriers, signage and/or security personnel, as appropriate.

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage Cultural heritage Cultural heritage sites will Contractors, IAs OEEs, IEMs, be preserved where PPMO, provincial identified, especially for Cultural Heritage Great Wall of the Ming Department, Dynasty (Wuhudun city and county section). In accordance cultural heritage with the PRC regulations, bureaus no person shall destroy, damage, deface, conceal, or otherwise interfere with a relic.

Wuhudun subproject construction will neither pass through nor involve the protection scope of the Great Wall of the Ming Dynasty. To better protect the Great Wall of the Ming Dynasty, it requires the relevant laws and regulations such as the PRC Cultural Relics Protection Law,2002, PRC Regulations on the protection of the Great Wall,2006 and Notice of Promulgating protection scope of the early Great Wall in Ningxia Ningxia Hui Autonomous Region, September 2016 etc., should be strictly complied. The Wuhudun subproject construction should avoid and bypass the Great Wall and the following activities shall be prohibited in the Great Wall of the Ming Dynasty: ① earth and bricks taking, tree and crop planting; ② graving and defacing; ③ erecting and installment of unrelated facilities to protect the Great Wall; ④ crossing the Great Wall of the Ming Dynasty by vehicles; ⑤ displaying appliances that might damage the Great Wall of the Ming Dynasty; ⑥ activity implementation in untapped area; ⑦ other activities prohibited by the laws and regulations.

If an important site is unearthed, work will be stopped immediately and the matter promptly referred to the County,

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage municipal, provincial- or state-level agencies for evaluation and decision on appropriate actions.

Occupational health Contractors will implement Contractors IAs, OEEs, IEMs, and safety (OHS) adequate precautions to PPMO, county protect the health and and district EPBs safety of construction workers. OHS risks will be managed by applying measures in the following order of preference: avoiding, controlling, minimizing hazards, and providing adequate protective equipment. The contractors will undertake the following activities:

Personal protection. Provide personal protection equipment, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations for workers. - For Hongsipu subproject access road (19.7km) ,safety goggles and respiratory masks to workers doing asphalt road paving;

Emergency preparedness and response. An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events, and submitted to the local EPBs for review and appraisal. Emergency phone link with hospitals in each County will be established. A fully equipped first-aid base in each construction camp will be organized.

Communication. Ensure that OHS matters are given a high degree of publicity to all persons

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage regularly or occasionally on each construction site. Posters will be displayed prominently in relevant areas of the site.

Training, awareness and competence. Train all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work. Implement SITs/HIV/AIDS and other communicable diseases awareness and prevention program to target the local community and construction workers.

C. Operation Phase 1. Water Wastewater from Separate and reuse the Contractors IAs, OEEs, IEMs, Quality grape processing seeds and grape skins PPMO, county equipment cleaning prior to discharging and district EPBs Primarily wastewater relates to water Treat wastewater in quality in aerobic ponds prior to irrigation release, including use of canals and physical aerators. reservoirs Nutrient runoff Training will be provided to IAs IAs, County or farmers on proper fertilizer district EPB selection, application and procedure.

Fertilizer will be applied in soluble forms of nitrogen, potassium and phosphate, through drip irrigation systems.

Use organic fertilizers, compounds and compost as base fertilizers to reduce nutrient loss

Apply compound fertilizers including nitrogen, phosphate and potassium according to soil nutrient tests based on the requirements of tree growth

Provide capacity building to farmer in appropriate guidelines for inorganic fertilizers application.

Apply fertilizers according to soil nutrition and demand of tree growth.

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage Apply compounds, including nitrogen, phosphate and potassium in the proper ratio

Ditch or hole application methods will be used and covered with earth to increase fertilizer effects and lower pollution

2. Water Water savings At least 90% of new or IAs IAs, NWRD Balance existing vineyard and Chinese Date and yellow horn orchardland area in the Project will install water-efficient irrigation systems such as drip or pipe irrigation with water meters to closely and accurately monitor water consumption. by 2018.

The subproject will install water meters to measure all water entering all the subprojets’ production processes at all sites from all sources (pipelines, wells and local reservoirs) and report water consumption quarterly. The project monitoring annual report will include documentation of progress of crop and irrigation conversation, and corresponding water use efficiency improvements. 3. Land Irrigated farmland Use of drip irrigation IAs IAs, County or Degradatio systems is likely to mitigate district EPB n against risk of land degradation due to over irrigation, reducing soil erosion, sediment runoff and soil salinization.

Pesticide Training will be provided to IAs IAs, County or contamination farmers on proper district EPB, pesticide selection, agriculture, application and procedure animal/ in the field farmer schools, husbandry including training on: bureaus

(i) International Code of Conduct on the Distribution and Use of Pesticides (2002); (ii) FAO Guidelines on good practice for ground application of pesticides (2001); (iii) FAO Guidelines on

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage standards for agricultural pesticide application equipment and related test procedures (2001); and (iv) FAO Guidelines on minimum requirements for agricultural pesticide application (2004) (v) Pesticide Management Measures in Ningxia Hui Autonomous Region, issued by Ningxia Autonomous Region Agriculture and Animal/ Husbandry Department on March 1, 2006 (vi) Integrated pest management program to reduce the potential impact from over use of pesticides (according to GB 2763—2014, National food safety standard--Maximum residue limits for pesticides in food and a series of lists of Prohibited and Restricted Toxic Chemical Pesticidesetc issued by the Ministry of Agriculture, including but not limited to the following: Announcement No.199th of the Ministry of Agriculture; Announcement No.274th and No.322nd of the Ministry of Agriculture; Announcement No.1157th of the Ministry of Agriculture; Announcement No.1158th of the Ministry of Agriculture; Announcement No.1586th of the Ministry of Agriculture; List of prohibited and restricted toxic chemicals in China(first batch, 1998) ; List of prohibited and restricted toxic chemicals in China(second batch, 2005); Announcement No.194th,and 199th of the Ministry of Agriculture; Announcement No.199th and 1586th of the Ministry of Agriculture; Announcement 1586th of the Ministry of Agriculture; and Announcement No.274th and 1586th of the Ministry of Agriculture).

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage

Application of an efficient combination of low toxicity, low-residue and biological pesticides and herbicides.

Limit application times to the mornings after the dew, and not during high winds or high afternoon temperatures

Controlling the number of spray applications.

Where possible, use tunnel or recycling sprayers, which provide both drift control and canopy sensing.

Select improved varieties and strong seedlings which have the capacity to resist pests and diseases

No use of pesticides that are restricted by the WHO, environmentally friendly pesticides only

Disposal containers used for pesticides and cleaning

Monitor and forecast development trends of pests and diseases, prevention combined with control

Adaptation of pollution-free cultivation techniques that are currently being carried out in many fruit gardens.

Fertilizers Promote fertilizer efficiency IAs IAs, County or contamination and reduction, and actively district EPB, explore output efficiency, agriculture bureau product safety, resource conservation and environment-friendly modern agricultural development model.

Promote high-performance slow-release fertilizers with conservation tillage, straw returning, applications of formula fertilizer and organic fertilizer, drip irrigation, water and fertilizer integrated irrigation technology

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage

Use gypsum and other conditioning agent combined with engineering measures to improve saline soil.

4. Dehydration process Biogas dehydration, EMC,IA of PPMO Wastewate in biogas production sofened water system and Binggou r process, drainage of domestic sewage will be subproject and the softened water treated in septic tank then Ma’anshan system, the boiler reused in the biogas subproject sewage and fermentation system. domestic Biogas boiler drainage will sewage(Binggou be reused for the plant subproject) road water sprinkling as dust suppression.

Selection of high quality equipment and fittings, and to strengthen the daily management and repair and maintenance work to prevent and reduce the occurrence of leaking phenomenon.

Double anti-seepage treatment of feed tank, waste pool, homogenization pond, biogas slurry and residue pond, drying bed, collecting tank for filtered liquid and open trench for waterline. Both main anti-seepage layer and sub-antiseepage layer use nonwoven geotextiles + HDPE film whose thickness is no less than 1.5mm. The specifications of geotechnical cloth is no less than 600g/m2. The bottom pavement will compact soil layer. The filtration coefficient of impervious barrier is ≤ 10-9m/s after taking measures.

Impact on surface Ensure the Maánshan water quality from livestock wastewater to be livestock wastewater drawn off and directed to a (for Maánshan storage tank for managed subproject) distribution before releasing to farmland and used as liquid fertilizer.

Implement provisions of Impact on Technical Standard of groundwater Preventing Pollution for quality(for Livestock and Poultry Maánshan 118

Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage subproject) Breeding (HJ/T81-2001). i. separation of stormwater drainage system and sewerage collection system (stormwater to be stored separately for site use); ii. built sewage collection and distribution system in the project site; iii. no open trenches; iv. drainage vessels with anti-seepage measures or cement pipes to convey wastewater and prevent overflow and infiltration; v. all storage facilities, pre-treatment tanks, digesters, settling tanks, drainage pipes, digestate storage tanks, and rain water collection tanks should be designed with high quality materials and monitored for leaks.

5 Exhaust Biogas boiler gas, Biogas boiler exhaust gas EMC,IA of PPMO emission odor produced by will be released through a Binggou and noise pretreatment 10m high stack, subproject and impacts workshop and Ma’anshan fugitive odor caused Pretreat treatment subproject by the biogas plant workshop exhaust will be area (Binggou treated through biological subproject) filter pool (deodorant system) then released to the air,

Biogas slurry storage will be located near tall trees and sprayed with deodorant, etc.

Livestock odor, In local planning, maintain noise and safety a 500 m distance around (NH3 and H2S), for site in compliance with Maánshan Technical Standard of subproject Preventing Pollution for Livestock and Poultry Breeding (HJ/T81-2001) to prevent residential development.

6. Solid Using agricultural Implement local EMC,IAs/farmers PPMO, local Waste film government developed /agricultural governments, comprehensive plastic film residual film local finance, recycling program and recycling outlets auditing , subsidy policy; and agricultural agriculture, residual film animal and Monitor and enforce plastic processing husbandry, film recycling measures plants discipline through local recycling inspection and system, double-entry other mechanism and other departments

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage regulatory system (for details please see the para. 106 of the Addendum);

Capacity building will be conducted for local famers during operation period, improving their consciousness to the impact of residual agricultural film for production, taking active actions to restore and clean agricultural film and reducing agricultural film usage. What’s more, training them to use degradable agricultural film.

Waste branches and Hire local farmers. to EMC,IAs/farmers PPMO leaves from trimming recycle waste branches of ecological shelter and leav for fertilizer, feed forest or fuelwood

Unplanned or All livestock solid waste EMC,IA of PPMO unsound disposal of generated in animal Ma’anshan livestock solid production shall be subproject wastes (for handled and disposed of Maánshan by arrangements on-site or subproject) off-site. Off-site arrangements must have the capacity and willingness to accept waste in the long term.

7. Health Health and safety of Operating staff will be EMC, IAs PPMO and local and safety operating staff protected from workplace safety production hazards by; supervision and i. safe storage and health handling of pesticides, and departments chemicals for disinfection of facilities and livestock, ii. safe handling of pesticides, chemicals, serums, and veterinary pharmaceutics in laboratories; iii. personal protection gear for work hazards; iv. staff protection from exposure to animal diseases.

8. Insufficient Conduct training for EMC, IAs PPMO Environme environmental environmental ntal management management manageme capacity Conduct training for the nt grape processing plant staff, to ensure staff are competent in plant processes and

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Impact Potential Impacts Mitigation Measures Project Supervising Factor and/or Issues Implementing Agency and/or Company Stage occupational health and safety measures

Refine and maintain a grievance redress mechanism. ADB = Asian Development Bank, DRC = development and reform commission, EIA = environmental impact assessment, EMC = environmental management consultant, EMP = environmental management plan, EPB = environmental protection bureau, GB = Guo Biao (national standards), IA = implementing agency, IEE = initial environmental examination, IEM = independent environmental monitor, m = meter, NEPD = Ningxia Environmental Protection Department, NFD = Ningxia Finance Department, OEE = onsite environmental engineer, PPMO = provincial project management office, PPTA = project preparatory technical assistance, PRC = People‘s Republic of China, WRB = water resources bureau.

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Sources: Domestic EIA report, and consultations with county and district EPBs.C. Environmental Monitoring and Inspection

6. The environmental monitoring program is presented in Table A2. This program considers the scope of monitoring, environmental media, monitoring parameters, time and frequency, implementing and supervising agencies. The monitoring will follow the methodology provided in the national standard methods for monitoring pollutants. Other associated standards are national environmental quality standards and pollutant discharge/emission standards.

7. Internal monitoring and inspection. The PPMO will nominate at least one qualified full-time environmental management staff member to undertake environmental management and monitoring activities. The PPMO will further engage a national environmental management consultant (EMC) to assist the PPMO and IAs including project implementing offices (PIOs) in carrying out internal monitoring and inspection, reporting to ADB through quarterly project progress reports, annual environmental monitoring reports, and a project completion report, and conducting necessary training. The PPMO and IAs, with assistance from the EMC, will conduct internal monitoring and inspection on the progress of the EMP, information on project implementation, the environmental performance of the contractors, and environmental compliance, considering reports submitted by contractors, environmental monitoring stations (EMSs), environmental institutes, and independent environmental monitors (IEMs).

8. Monitoring and inspection. EMS at the municipal level will be responsible to undertake regular and random monitoring and inspection before, during, and after construction, as well as in the event of emergencies. If abnormalities are found, the EPB will impose a fine and issue a notice of rectification with a specific deadline.

9. Independent environmental monitoring. Local environmental monitoring agencies and/or companies will be engaged by IAs as IEMs. Each IEM will include an environmental safeguard specialist to conduct independent environmental monitoring. The independent environmental monitoring will be conducted to ensure that contractors appropriately implement mitigation measures and that project environmental objectives are achieved. The results of the environmental monitoring will form part of quarterly project progress reports, annual environmental monitoring reports, and a project completion report that will be submitted to the ADB. IEMs will assist NFD including the PPMO in reporting to ADB the project progress on environmental issues through quarterly project progress reports, annual environmental monitoring reports, and a project completion report.

10. Results of monitoring will be used to evaluate: (i) the extent and severity of environmental impacts compared with the predicted impacts, (ii) performance of the environmental protection measures and other project requirements, (iii) trends of impacts, and (iv) overall effectiveness of the EMP. Effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. Modification of measures required by the EMP will be performed, if necessary. The PPMO and PIOs play critical roles in this feedback and adjustment mechanism as shown in Figure A3.

11. The environmental monitoring program is in Table A2. So far, an EMR has been submitted and disclosed on the ADB project website in January 2015(https://www.adb.org/projects/documents/prc-ningxia-irrigated-agriculture-water-conservati on-demonstration-project-jan-jun-2014-emr), which concludes overall compliance, however, indidates the issue of lacking monitoring data 35 . Cost estimates for the environmental

35 The ADB loan review mission in Decemeber 2016 reiterated the reporting requirements as defined in the CIEE, which is consolidated environmental monitoring and progress reports (EMR) to be prepared by the PMO, with support of the external monitoring agencies, and submitted to ADB for approval and disclosure. The mission also emphasized that the agencies should be contracted immediately to conduct environmental impact monitoring (to be financed under the training package) and the monitoring result should be reported in EMRs. 122

monitoring program are in Table A7. Before implementing the monitoring plan, responsible agencies will provide more accurate estimates of the costs and present a further detailed breakdown of the cost estimates. During project implementation, the costs will be adjusted based on actual requirements.

Table A2: Environmental Monitoring Program Item Parameters Location Time and Implementing Supervising Frequency Agency Agency A. Internal Monitoring and Inspection 1. Progress on Follow All sites Weekly Contractors, PPMO, IAs, EMP and project parameters set for SC EMC , NEPD, implementation monitoring and ADB inspection, audit, and independent 2. Environmental monitoring Performance 3. Environmental Monitoring

B. Project Monitoring* 1. Water Convert existing All sites Annual EMSs IAs, county Conservation flood irrigated and district crops to drip / EPBs pipe irrigated agriculture. Record: hectares of land in which drip irrigation is installed; kilometers of drip irrigation pipes installed along crop rows which were previously flood-irrigated 2. Appropriate Visual inspection Record Annual EMSs IAs, county application of to confirm actual and district pesticides, application of volumes EPBs herbicides and fertilizer, of fertilizer;plastic pesticides and herbicide/ film and its herbicides in pesticide/ collection/recyclin accordance with fertilizer g operational phase applicatio mitigation ns/ measures listed plastic above. film and its collection /recycling during and after the project.

3. Wastewater pH, COD, TSS 100 Monthly EMSs IAs, county discharge from meters sampling during and district grape processing downstre discharge EPBs facilities, am from periods from the grape discharge processing outlet of facilities. each grape processin g facility;

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Item Parameters Location Time and Implementing Supervising Frequency Agency Agency 4. Surface water PH, COD, TSS Cloest Monthly EMSs IAs, county quality artificial and district reservoirs EPBs to Wuhudun and Maánsha n subprojec ts

5. Cultural Great wall of Ming Wuhudun Monthly IAs, EMC Ningxia city heritage Dynasty suproject and Xingqing district cultural relics departments

6. Land Visual inspection 1 Inspect at EMSs IAs, county degradation for gully, sheet monitorin beginning of and district improvements erosion, or g location construction and EPBs surface for each quarterly expressions of site thereafter. saline soil. Visual Conduct inspection of all Photographic sites. documentation of construction sites before, during and after the project at set locations (especially at sites which may be especially vulnerable to land degradation). 7. Shelterbelts Visual inspection 1 Inspect at EMSs IAs, county for (a) the number monitorin beginning of and district of hectares g location construction and EPBs planted, (b) the for each quarterly planting survival site thereafter. rate. Conduct Visual Photographic inspection of all documentation sites. Conduct during each Photographic inspection. documentation.

8. Livestock Water and energy Ma'ansha Annual IA of PPMO breeding (for resources, waste n Ma’anshan Ma’anshan treatment, and subprojec subproject subproject) expenditure on t veterinary drugs eco-aquic ulture area

C. Project Completion Environmental Audit

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Item Parameters Location Time and Implementing Supervising Frequency Agency Agency 1. Water Balance Visual inspection Visual Upon project EMSs IAs, county to confirm at least inspectio completion and district 90% of new or n of all EPBs existing vineyard sites to and Chinese Date document land area in the area of Project have land installed converted water-efficient to drip or irrigation systems pipe such as drip or irrigation, pipe irrigation by and new 2016. areas of irrigated land with drip or pipe irrigation. 2. Appropriate Visual inspection Visual Upon project EMSs IAs, county application of to confirm inspectio completion and district pesticides, application of n of all EPBs herbicides and fertilizer, sites fertilizer pesticides and herbicides in accordance with operational phase mitigation measures listed above.

D. Independent Environmental Monitoring 1. Mitigation Mitigation All sites Annually IEMs IAs, county Measures by measures to be and district Contractors implemented by EPBs contractors (listed in Table A1) BOD = biochemical oxygen demand, COD = chemical oxygen demand, dB(A) = A-weighted decibel, EMC = environmental management company/consultant, EMP = environmental management plan, EMS = Environmental Monitoring Station at the city level, EPB = Environmental Protection Bureau, IEM = independent environmental monitor, the IEMs will be independent third parties hired by the IAs, IA = implementing agency, Leq = equivalent continuous noise level, m = meter, NH3-N = ammonia nitrogen, pH = measure of acidity and alkalinity, PM10 = particulate matter smaller than 10 micrometers, PPMO = provincial project management office, NEPD = Shandon provincial Environmental Protection Department, TN = total nitrogen, TP = total phosphor, TSP = total suspended particulates, TSS = total suspended solids Source(s): Domestic EIAs, and consultations with PPMO, county and district EPBs, and IAs. * Independent government monitoring will include compliance and contractor monitoring, and is outside the scope of this Project EMP.

12. Performance Indicators: Table A3 outlines acceptance criteria for key aspects of the environmental performance of the project.

Table A3: Performance Indicators Item Parameters Targets Water Conservation Water use In the project area total irrigated area has been increased by 37,850 mu (2,523 ha), but depending on annual weather fluctuations, annual irrigation water consumption has been reduced in the order of 10 million m3.

Irrigation water use should be 1.9 ML/ha (plus or minus 20%)

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Wastewater discharge pH 5.5–8.5mg/L from grape processing TN 30 mg/L facilities** TP 10 mg/L BOD 100 mg/L COD 100 mg/L TSS 100 mg/L Irrigation water quality** pH 5.5–8.5mg/L TN 30 mg/L TP 10 mg/L BOD 100 mg/L COD 100 mg/L TSS 100 mg/L Air quality SO2 0.15 ug/m3 PM10 0.15 ug/m3 Noise Leq (dB(A)) Not exceeding 60 decibels [dB(A)] in daytime and 50 dB(A) in nighttime * Based on average concentrations from base line monitoring detailed in Table 11 of IEE. ** Based on Class III irrigation water criteria.

D. Public Consultation 1. Public Consultation during Project Preparation

13. Various public consultations were conducted in the course of the preparation of the feasibility study report and EIA. During the feasibility study report preparation, the respective municipal governments were consulted to assist in site and irrigation technology selections. During EIA preparation and project preparatory technical assistance, public consultations with various groups of stakeholders were conducted. The main focuses of public consultations were to assess the environmental impacts of the proposed subprojects on nearby residents and mitigation measures. These activities were carried out in accordance with Interim Guidelines on Public Participation in Environmental Impact Assessment (2006) of the Ministry of Environmental Protection, and ADB Safeguard Policy Statement (2009). Grievance redress mechanism has been also discussed with people who might be affected during project preparation, through several rounds of public consultations with various stake holders groups.

2. Future Public Consultation Plan 14. Future plans for public involvement during the design, construction, and operation phases were developed during the project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the project is completed. They include several types of consultations, e.g., site visits, workshops, investigation of specific issues, interviews, and public hearings (Table A4).

15. Public participation plans are part of the project implementation and management plan. The IA is responsible for public participation during project implementation. The IAs will also establish environmental management units (EMU) for supervising implementation, continuing public consultation, monitoring progress, and responding to grievances. The staff at the offices will be well trained to handle crisis situations or conflicts with residents due to distress from environmental impacts. Costs for public participation activities during project construction are included in the project funding. The costs are estimated as CNY3,000 for each expert workshop, CNY5,000 for each public workshop, and CNY6,000 for each press conference. Costs for public participation activities during operation will be covered by the IA. In addition, the established feedback mechanisms (Figure A3) will ensure timely feedback and measures to address any concerns raised by the project affected communities.

Table A4: Public Consultation Program

Organizer Approach and/or Times Subjects Participants 126

1. Project Preparation PPMO, IAs, Design EIA public opinion surveys: Priority, design, PPMO, IAs, Design Institutes, EIA once for each subproject environmental benefits and Institutes, EIA institutes, institutes, county impacts, social benefits and country and district EPBs, and district EPBs Socioeconomic and AP impacts, mitigation other provincial, municipal, surveys measures, attitudes toward county and district subproject project, and government stakeholders, Public consultation meeting suggestions community representatives and questionnaire: once for overall project

Site visits: at least twice per year 2. Construction PPMO, IAs, EMC, Public consultation and site Adjusting mitigation Residents within IEMs visits: at least once a year measures if necessary, construction construction impacts, area comments and suggestions Public information session: Adjusting mitigation Representatives of at least once a year measures if necessary, residents and social sectors construction impacts, comments and suggestions 3. Test Operation

PPMO, IAs, EMC, Questionnaire survey: at Comments and suggestions Local residents and social IEMs least once during test on operational impacts, sectors, county and district operation public suggestions on EPBs corrective actions Site visits: multiple, depending on results of project completion environmental audit

4. Operation

PPMO, IAs Site visits: once every 6 Irrigation system Farm manager, local months by IEMs and PPMO operational performance, residents adjacent to farms informal interviews with local residents Expert workshop or press Expert comments and Experts from residents, conference: as needed suggestions on corrective social sectors, media based on public measures consultation and workshop AP = affected person, EIA = environmental impact assessment, EMC = environmental management consultant, EPB = environmental protection bureau, IEM = independent environmental monitor, IA = implementing agency, PPMO = provincial project management office, NEPD = Ningxia Environmental Protection Department. Source(s): Domestic EIAs, and consultations with PPMO, NEPD, county and district EPBs, and IAs.

E. Responsibilities and Authorities for Implementation

16. The Ningxia Finance Department is the executing agency (EA). A leading group (LG) has been established to help guide the project. The LG is directed by the Vice-chairman of the Ningxia Hui Autonomous Region Government, and includes members from the Ningxia Development and Reform Commission, the Ningxia Water Resources Department, the Ningxia Finance Department, the Ningxia Economic Committee, the Ningxia Forest Bureau, the Ningxia Agriculture and Livestock Department, the Ningxia Environmental Protection Department, the Ningxia Science and Technology Department, the Ningxia Transportation Department, the Ningxia Education Department, the Ningxia Civil Affairs Department, the Ningxia Construction Department, the Ningxia Agriculture Reclamation Group Company, Ltd (NARC), and the Ningxia Poverty Relief Office.

17. The PPMO is co-located in the Ningxia Finance Department. Delegated by the EA, the 127

PPMO will have overall responsibility for supervising the implementation of mitigation measures and reporting to ADB. The PPMO will be also responsible for replying to petitions and/or complaints from affected persons, if such petitions and/or complains are appealed to the PPMO.

18. Implementing agencies (IA) include the Yinchuan Municipality Forestry Department, the Tongxin County Finance Department, the Hongsipu District Finance Department, and NARC. The IAs have each established project implementing offices (PIOs) to coordinate the preparation and implementation of the sub-Projects.

19. The PPMO, IAs, and contractors will each nominate dedicated, trained, and qualified environment specialists to undertake environmental management activities and ensure effective EMP implementation. Project management consultants engaged by the PPMO including EMC will assist the EA/PPMO and IAs in preparing quarterly project progress reports and carrying out training programs. Table A4 shows the environmental responsibilities in different phases of the project.

20. The IAs will be largely responsible for environmental management and implementation of mitigation measures. The IAs will ensure that the EMP is carried out. The IAs will also engage design institutes, EIA institutes, and IEMs to help with environmental management at the preparation, design, construction, and operation phases. The IAs will be responsible for arranging environmental monitoring reviews and responding to any adverse impacts beyond those foreseen in the EIAs. The IAs will also address requests for mitigation measures from county and district EPBs and ADB. If affected persons appeal petitions and/or complaints to an IA, the IA will reply within 30 days, based on consultations with the IEM and other relevant institutes and/or agencies as necessary.

21. Construction contractors will be responsible for implementing mitigation measures during construction, while the IAs will be responsible for implementing such measures during the operation.

22. In accordance with the EMP, each IA will set up an environmental management unit (EMU) that will generally require two employees. The EMU will be responsible for: (i) implementing the EMP and developing further implementation details; (ii) supervising contractors‘ implementation of mitigation measures during construction; (iii) implementing training programs for contractors; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal routine environmental monitoring; (vi) reporting performance of the EMP to the PPMO and responsible agencies; and (vii) assisting the IA in replying to petitions and/or complaints appealed from affected persons, if such petitions and/or complaints are appealed to the IA. The EMU will be supported and supervised respectively by the IA, EMC, IEM, and county or district EPB.

23. County and district EPBs, delegated by NEPD, will conduct regular and random environmental compliance monitoring and inspection during construction and operation. The EMS at the municipal level will conduct environmental monitoring and inspection. On the basis of the environmental monitoring and inspection, the EPB will impose fines and order corrective actions, if necessary.

Table A5: Environmental Responsibility Matrix Agency Phase Responsibility Design Institutes Preparation Review and select alternatives (technological, design, location, etc.) Design Update the EMPs in cooperation with EIA institutes, and incorporate mitigation measures in engineering detail designs and contracts EIA institutes Preparation Prepare EIAs and EMPs for

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subprojects, including public consultations NEPB Preparation Review and approve EIAs, including the EMPs Test Operation Review and approve project completion environmental audit report, and order corrective actions if necessary PPTA consultant Preparation Prepare IEE including EMP, including public consultations PPMO Preparation Coordinate and supervise EIAs, IEE and public consultations Design Review and approve environmental measures Tendering and Contracting Incorporate EMP clauses in bidding documents and contracts Construction Advise and supervise implementation of mitigation measures GRM Deal with petitions and/or complains, if such petitions and/or complains are appealed to the PPMO IAs Preparation Review and endorse IEE, including the EMP, for posting at ADB website Design Review and approve environmental measures Tendering and Contracting Incorporate EMP clauses in bidding documents and contracts Construction Ensure implementation of mitigation measures, and public consultations; With EMC, conduct internal environmental monitoring and inspection, supervise implementation of the EMP, and conduct public consultations Test Operation Conduct project completion environmental audit, including sampling and lab tests, and prepare project completion environmental audit report Operation Ensure proper operation of subproject facilities according to design standards, and implementation of mitigation measures and public consultations GRM If petitions and/or complains are submitted to IAs from affected persons, reply to the affected persons within 30 days Procurement agency Tendering and Contracting Incorporate EMP clauses in bidding documents and contracts Contractors Construction Implement mitigation measures GRM Tries to resolve a concern arose by affected persons during construction directly with the affected persons County / District EPBs Construction Advise and supervise implementation of mitigation measures EMC (contracted by Construction Conduct internal monitoring and PPMO) inspection, and public consultations IEMs Construction Conduct independent monitoring (including public consultations), and prepare periodic monitoring reports to IAs EMSs (on behalf of Construction Conduct monitoring county / district EPBs) Operation Conduct regular and unannounced environmental monitoring and inspection 129

EMC Test Operation Assist IAs in conducting environmental audit and preparing progress reports to the PPMO Operation Conduct internal environmental monitoring and inspection, supervise implementation of the EMP, and conduct public consultations IEMs Test Operation Assist IAs in conducting environmental audit and preparing progress reports to the PPMO Operation Conduct independent monitoring (including public consultations), and prepare periodic monitoring reports to IAs Project managers GRM Tries to resolve a concern arose by affected persons during construction directly with the affected persons Township GRM If petitions and/or complains are governments, submitted to township governments subdistrict offices and/or subdistrict offices from affected persons, reply to the affected persons within 2 weeks Village committees GRM If petitions and/or complains are submitted to village committees from affected persons, reply to the affected persons within 2 weeks. EIA = environmental impact assessment, EMC = environmental management consultant, EMP = environmental management plan, EPB = environmental protection bureaus, GRM = grievance redress mechanism, IA = implementing agency, IEE = initial environmental examination, IEM = independent environmental monitor, EMS = environmental monitoring station at city or county level, IA = project implementing agency, PPMO = provincial project management office, PPTA = project preparatory technical assistance. Source(s): Domestic EIAs, consultations with PPMO, NEPD, county and district EPBs, and IAs.

F. Institutional Strengthening and Training

24. An assessment undertaken during the project preparatory technical assistance indicates that the PPMO has adequate technical and institutional capacities for project implementation. However, the IAs have weak capacity in environmental management and monitoring. For proper implementation of the EMP, it is necessary to strengthen the capacity of the IAs. The proposed training is shown in Table A5.

25. It is considered that the two-tier implementation arrangement— PPMO and IAs provide a reasonable framework for project management and control. The definition of roles, responsibilities and relationships between the PPMO, IAs, and other relevant agencies (e.g., NEPD, county and district EPBs) is adequate to ensure the effective implementation of the project. 26. Environmental specialists in the PPMO, IAs, and contractors will receive training in environmental management, environmental monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental management techniques. Funding of this training will be included in the project budget and in the operation and maintenance budget in the operation phase.

27. The Farmer Field Schools (FFS) will be a key component of the training, and will increase capacity in fertilizer and pesticide application approaches and techniques. The following provides a summary of the FFS as described in more detail in ADB, 2012, Ningxia Irrigated Agriculture and Water Conservation Demonstration Project PPTA, Final Report, Appendix C. The cost estimates for FFS have been provided for in Appendix C and have not been included as part of the EMP cost estimate.

28. The IAs have proposed to apply the FFS training method. Assuming 4,669 farmers will be trained, and one field school class has a maximum of 15 farmers per session, and at least one 130

session (class) lasts one day, for at least 6 sessions per year, then there will be almost 1,488 FFS sessions in total per year; or 7,442 sessions of one day during the 5-year project implementation of the grape cultivation program. This would be the absolute minimum. It may well be higher given the fact that many farmers are new to grape cultivation. Very new technologies and techniques need to be introduced, while already during spring the classes may need to start to plan for the season.

29. The FFS sessions will require at least 62 trainers for grape FFS. These trainers should be well trained technicians who will also be busy to prepare for the field school days, and visit farmers during the remainder of the month to collect data and advice farmers on the spot with problems they encounter (extension service).

30. The principle for the FFS is that farmers get an allowance for that day to cover his day lost for work and costs of transport, while there are expenses for snacks, lunch, material, transport of trainer. A unit cost CNY 125 per class-day per farmer (or CNY 1,875 per class of 15 farmers) has been assumed in the calculations. However, since an average cost per farmer- session-day is used, the size of the class has no effect on the costs of the FFS subproject.

31. Preliminary cost estimates indicate that about $1.85 million will be needed for the FFS program for grape growing farmers during the 5 year period.

32. The FFS will include the following:

(i) Training and certification of Pesticide Application Operators. Training and certification will follow FAO Guidelines (2003) on ‗organization and operation of training schemes and certification procedures for operators of pesticide equipment‘ (see http://www.fao.org/docrep/006/Y2686C/Y2686C00.htm for Chinese-language version). Training will also be provided on procedures for annual testing and calibration of pesticide equipment as per FAO Guidelines (2001) on standards for agricultural pesticide application equipment and related test procedures.

(ii) Training on the appropriate application of fertilisers, including the use of soluble forms of nitrogen, potassium and phosphate through drip irrigation systems. The training program will develop and trial these and other technologies with the aim of reducing the amount of fertilizer application per unit area within the project area. The volume of fertilizer used per unit area will be reported as part of the EMP monitoring requirements, allowing the reduction of fertilizer to be quantified.

(iii) The training will also include (i) use of organic fertilizers, compounds and compost as base fertilizers to reduce nutrient loss, building on the lessons learned from the IEM Project, (ii) application of compound fertilizers including nitrogen, phosphate and potassium according to soil nutrient tests based on the requirements of tree growth, and (iii) capacity building to farmer in appropriate guidelines for inorganic fertilizers application.

Table A6: Institutional Strengthening and Training Activities Target Agencies/ Contents Timing Attendees Strengthening Institutional PPMO, IAs, NEPD, county Defining institutional During project Strengthening and district EPBs arrangements for preparation environmental management, monitoring, and supervision

Defining positions and responsibilities

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Activities Target Agencies/ Contents Timing Attendees Appointing and recruiting personnel

EMC Recruiting and contracting Prior to project EMC for internal implementation environmental management consultancy and monitoring IEMs Recruiting and contracting Prior to project IEMs to conduct implementation independent environmental monitoring for subprojects

Environmental IAs, procurement agency, Developing environmental During project Management EMC management clauses and preparation Clauses and incorporating them into Protocols construction and operational contracts

Developing/refining environmental monitoring protocols

Developing environmental emergency response procedures Training Environmental PPMO, IAs, contractors Environmental laws and Prior to project Laws, regulations implementation Regulations and Policies Environmental policies and plans

Basic environmental management

Environmental emergency response EMP PPMO, IAs, contractors Responsibility and duties for Prior to and during Implementation project construction, project implementation management and environmental protection

Tasks of environmental protection in the project construction

Key environmental protection contents in project construction

EMP improvement and corrective actions Environmental IAs, contractors Monitoring and inspection Prior to and during Monitoring, methods, data collection and project implementation Inspection and processing, interpretation of Reporting data, reporting system

Environmental reporting requirements

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Activities Target Agencies/ Contents Timing Attendees Field Farmer IAs, contractors Training and certification of Prior to and during Schools Pesticide Application project implementation Operators.

Training on the appropriate application of fertilizers and pesticides

Environmental sustainability demonstration for livestock breeding (Maánshan subproject only) EMC = environmental management consultant, EMP = environmental management plan, EPB = environmental protection bureau, IA = implementing agency, IEM = independent environmental monitor, PPMO = provincial project management office, NEPD = Ningxia Environmental Protection Department. Source(s): Domestic EIAs, and consultations with PPMO, NEPD, county and district EPBs, and IAs.

G. Reporting and Supervision

33. Monthly construction reports. During the construction, land preparation and planting period, contractors will submit monthly construction reports to the IAs. The reports will summarize: (i) environmental issues during construction, land preparation and planting; (ii) mitigation measures taken, if any; and (iii) consequences of the impacts on the environment and/or surrounding communities.

34. The contractors will be trained to take immediate actions to remedy unexpected adverse impacts or ineffective or inefficient mitigation measures, as required by the EMP. IAs will also respond to these reports in order to ensure that the contractors have taken appropriate and timely action. Additional measures may be taken, if needed, to ensure that all issues raised by the reports are appropriately addressed.

35. The reported environmental issues, mitigation measures, and the impacts will be reported to the PPMO quarterly, and NEPD and county and district EPBs semi-annually, then ADB annually. NEPD, county and district EPBs and ADB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

36. Monitoring reports. On behalf of the IAs, the local EPBs will delegate monitoring to the local EMSs. The EMSs will conduct regular and random environmental monitoring activities before, during, and after construction, land preparation and planting, as well as in the event of emergencies, according to the PRC environmental regulations. The monitoring reports will include: (i) project background, (ii) construction, land preparation and planting and operation activities, (iii) environmental conditions, (iv) measurement or sampling taken during auditing and their locations, (v) analytical results, (vi) interpretation and implication of the monitoring results, (vii) determination of the status with regard to applicable regulations and standards, and (viii) recommendations for improvement. These reports will be submitted to the IAs which will forward those to NEPD, county and district EPBs, and the PPMO.

37. Independent environmental monitoring reports. IEMs will submit independent environmental monitoring reports on an annual basis to IAs which will forward those to the PPMO, NEPD, county and district EPBs, and ADB. The reports will emphasize: (i) progress made in implementing the EMP, (ii) implementation of mitigation measures, (iii) environmental compliance, (iv) institutional strengthening and training, (v) public consultations, and (vi) problems and corrective actions taken, including any complaints (number, type/kind, issues, resolution) sent to the GRM.

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38. Quarterly project progress reports and project completion report. Based on the monthly construction reports, project monitoring and audit reports, and independent environmental monitoring reports submitted to the PPMO, the PPMO, with assistance from the EMC, will report to ADB on a quarterly basis the progress of the EMP, information on project implementation, and the environmental performance of the contractors, through quarterly project progress reports. Any complaints received under the GRM should be reported in the quarterly project progress reports and annual environmental monitoring reports submitted to ADB. In addition, within 3 months of physical completion of the project, the PPMO will submit to ADB a project completion report that describes the achievements in relation to the project's expected impact, outcome, and outputs including environmental terms. ADB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

39. The environmental reporting plan is presented in Table A7.

Table A7: Environmental Reporting Plan Reports From To Frequency Construction, land Contractors IAs Monthly preparation and planting reports

Project monitoring reports EMSs IAs (forwarded to As per the PRC regulation PPMO, NEPD, and county and district EPBs)

Independent environmental IEMs IAs (forwarded to Annual monitoring reports PPMO, NEPD, and county and district EPBs) and ADB

Quarterly Project Progress PPMO, EMC ADB Quarterly and within 3 months of Reports and Project physical completion of the Completion Report project

ADB = Asian Development Bank, EMC = environmental management consultant, EPB = environmental protection bureau, EMS = environmental monitoring station at city or county level, IEM = independent environmental monitor, IA = implementing agency, NEPD = Ningxia Environmental Protection Department, PPMO = provincial project management office, PRC = People‘s Republic of China-. Source(s): Domestic EIAs, and consultations with the EPBs, IAs, NEPD, and PPMO.

H. Work Plan

40. Before construction, land preparation and planting, the PPMO and IAs will develop detailed responsibilities and requirements for contractors and will provide detailed cost estimates of mitigation measures and environmental monitoring in the construction, land preparation and planting contracts. The PPMO and IAs will also detail the responsibilities of their environmental management offices and prepare their work schedules.

41. Before operation, the IAs will develop detailed work plans for environmental management and monitoring during operation based on the EMP. These work plans will be submitted to county and district EPBs and NEPD to help them to supervise implementation.

I. Cost Estimates for Environmental Management

42. The IAs with help from the PPMO will develop detailed plans for procurement of equipment and materials, and civil works for implementing mitigation measures and monitoring plans. Environmental considerations will be incorporated into the bidding documents and contracts to

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ensure environmentally responsive procurement.

43. Cost estimates for mitigation measures, environmental monitoring, and environmental administration are summarized in Table A8. The total cost for five years of project environmental monitoring and training is estimated to be CNY 1,496,250 (including the proposed newly added road in Hongsipu and replacement of yellowhorn orchard in Tongxin). Before implementing a monitoring plan, responsible agencies will present a more detailed breakdown of the estimated budget. During project implementation, the budgets will be adjusted based on actual requirements. Contractors will bear the costs for all mitigation measures during construction, land preparation and planting, which will be included in the bidding documents and contracts. The IAs will bear costs related to mitigation measures during operation. Costs related to environmental supervision during construction, land preparation and planting and operation will be borne by the IAs. Costs for capacity building will be borne by the project as a whole. During the operation phase, the training costs will be included in the operation and maintenance budget.

Table A8: Cost Estimates (CNY) for EMP to be covered by the ADB Loan Year 1 Year 2 Year 3 * Year 4 Year 5 Year 6 (2013) (2014) (2015) (2016) (2017) (2018) Detailed EMP development 89,000 - - - - Environmental training and 45,000 45,000 45,000 45,000 45,000 capacity building Construction phase 61,357 61,357 61,357 61,357 61,357 61,357 monitoring Operational monitoring - 260,000 260,000 260,000 Contingency (5%) 9,768 5,318 5,318 5,318 5,318 3,068 Total per year 205,125 111,675 111,675 371,675 371,675 324,425 Grand total 5 years 1,496,250 * As of December 2016, the overall project progress was about 43% against 60% of time elapsed. Project activities other than those involved in scope changes have been completed.

44. Itemised annual costs are provided in Table A9. These costs will be entirely funded by the executing agency and not from the ADB loan.

Table A9: Construction Phase Environmental Monitoring Costs

Cost Estimate (CNY) Environmental Aspect Construction Phase Environmental Monitoring Costs Independent environmental monitoring 30,000 Ambient Air 30,000 Water quality 15,000 Ambient Noise 18,000 Vegetation disturbance and soil and erosion 30,000 Operational Phase Environmental Monitoring Annual Cost Estimate Independent environmental monitoring 50,000 Water Quality 84,000 Ambient Air Quality 10,800 Ambient noise 20,000 Soil quality Monitoring 63,000 Greening 1,800 Soil and water conservation 25,000 Pests and diseases 3,600 Total 381,200

J. Mechanism for Feedback and Adjustment

45. Based on environmental reports, environmental authorities will decide whether: (i) further mitigation measures are required, or (ii) some improvement is required to environmental management practices. If it is found during inspection that there has been substantial deviation 135

from the EMP or any changes made to the project or any subprojects which may cause substantial adverse environmental impacts or increase the number of affected people, then PPMO should consult with environmental authorities and ADB immediately and form an environmental assessment team to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIA reports including EMPs should be submitted to the environmental authorities for approval, and finally report to ADB. The revised EMPs will be passed to the contractor(s) and IAs for implementation. The feedback mechanism is shown in Figure A3.

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K. Grievance Redress Mechanism

46. Public participation, consultation and information disclosure undertaken as part of the local EIA process, assessment, and development of resettlement plans; and consultations undertaken by the project consultants have discussed and addressed major community concerns. Continue public participation and consultation has been emphasised as a key component of successful project implementation. As a result of this public participation and safeguard assessment during the initial stages of the project, major issues of grievance are not expected. However, unforeseen issues may occur. In order to settle such issues effectively, an effective and transparent channel for lodging complaints and grievances has been established.

47. In the event of a grievance issue, the basic stages established for redress are outlined below and depicted in Figure A4 (which will be translated into Chinese and distributed by the EA to residents in the project). Note that Steps 1-5 are for the project construction phase, and steps 2-5 are for the project operation phase.

(i) Stage 1. If a concern arises during construction or operation of the project, the affected person tries to resolve the issue of concern directly with the contractor project manager (i.e. the superintendent overseeing the works). If successful, no further follow-up is required.

(ii) Stage 2. If not successful, the affected person can submit an oral or written petition/complaint to the village committee. 36For an oral complaint, the village committee must make written records properly. The village committee must give a clear reply within 2 weeks. The IEM will assist the village committee in replying to the affected person. Village committees are not part of the formal project structure, but provide an obvious first line of support for an affected resident in a village. The village committees represent the government at the community-level and provide the link to the county-level agencies, which in turn link to the IAs, and respectively higher levels, as required.

(iii) Stage 3. If the affected person is not satisfied with the reply in Stage 2, he/she can appeal to the township government after receiving the reply in Stage 1 and the township government must give a clear reply within 2 weeks. The IEM will assist the township government in replying to the affected person.

(iv) Stage 4. If the affected person is still not satisfied with the reply of township government, he/she can appeal to the IA. The IA, through the PPMO and PIOs, must inform the ADB project officer as soon as the complaint is recorded, by submitting relevant documents. The IA, through the EMU established in the IA, must prepare a clear reply in consultation with the EPB, EMC, and IEM, and give it to the affected person within 30 days.

(v) Stage 5. If the affected person is still not satisfied with the reply of the IA, he/she can appeal to the PPMO after receiving the reply of Stage 4. The PPMO must report to ADB as soon as the complaint is recorded by submitting relevant documents, and prepare a clear reply in consultation with the EMUs, EMC, IEMs, and ADB. The PPMO must give the reply to the affected person within 30 days. The PPMO will assess the situation, contact the affected person and Government project counterparts, and design and implement the course of actions. The ADB project team will be kept informed of progress by the PPMO and provide advice as necessary.

(vi) Note. The EA and PPMO will ensure that clear lines of communication are identified for each responsible agency in the GRM, including the PIOs, IAs, village committees, and contractors. These lines of communication will include: (a) the names of specific contact personnel in each agency; (b) contact work telephone numbers for these personnel and their office; (c) if available,

36 In the project cities/counties, the village committees are aware of their responsibilities and regulatory procedures. 137

contact fax numbers and/or email addresses. Contact names and details for each agency will be presented in Chinese language in Figure A2, prior to the distribution of this figure as a project poster among communities in the project sites. Both the EA and PPMO will each designate a specific contact person in their respective agencies, who will be responsible for collecting, documenting, and tracking any complaints received through the PIOs, IAs, village or township committees, or work contractors, and for ensuring that any affected persons are responded to in a timely fashion.

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Figure A4: Summary of Grievance Redress Mechanism for Project Construction and Operation

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Appendix B Approval of Domestic TEIAR

(dated on 17 April 2017)

140

Appendix C Regional Water Resource Analysis

(By the water source specialist, Mr. Sun Quan, dated on 30 September 2017)

1.Background of the project

Ningxia is located in the Eastern part of northwest China with diverse ecological types. The northern Yellow River irrigation area of Ningxia were surrounded from east, north and west direction by the Maowusu sandy soil, Ulan Buh Desert and the Tengger Desert respectively. Central Ningxia is rich of heat, but serious lack of water resources. The southern Ningxia is apart of the Loess Plateau with serious soil erosion. The typical arid zone of central Ningxia is the weak link concern about modern agricultural development due to low water resources utilization rate, irrational agricultural industry structure and low agricultural productive efficiency. Although a mass of Yellow river water was allocation to middle arid Ningxia, however, the implementation of water-saving irrigation has become an inevitable choice for the sustainable development of agriculture in the central arid zone. Adopt of water saving irrigation techniques like drip irrigation also is the key tasks to promote agricultural modernization in Ningxia. Only this way can change the passive drought resisting to initiative drought fighting, and promote efficient use of other resources. The best choice to enhance agriculture as well as the other industries development in this area is insist "drought fighting, water saving, high efficient, ecological" comprehensive consideration to improve the limited water resources utilization rate as a breakthrough, to develop efficient water saving agriculture as the main line, vigorously develop drought resistant agriculture. Then, agricultural disaster reduction capacity and production level will be significant increased in this area, and the most unsuitable central arid zone for human habitation will be changed into a regional economic and social development oasis, the majority poor people in this region will also become rich. In this context, Autonomous Region Government External Debt Management Leading Group Office coordinated with the Yinchuan Municipal People's Government External Debt Management Working Group Office, co-decide to adjust the initial practice area of Ningxia central water-saving characteristic agriculture demonstration project based on the actual needs of local economic and social development. They plan to establish "Yinchuan City eco-agriculture comprehensive demonstration project and Tongxin county Xanthoceras sorbifolia Plant demonstration and efficient water-saving irrigation project". Among them, Yinchuan City Forestry Bureau is responsible for the implementation of the "Yinchuan City eco-agriculture comprehensive demonstration project" located in Binhe New District of Yinchuan City, which consist of Binggou, Wuhudun and Maanshan Mountain area of Yinchuan eastern airport three subproject areas. The total construction area is 12595 Mu(839.66 hm2), including the implementation of efficient water-saving eco-agriculture comprehensive demonstration area of 10026 Mu(668.4 hm2), the implementation of high efficiency and water saving ecological forestry demonstration area is 428 Mu (28.53 hm2); Maanshan sub-project area to implement efficient water-saving characteristics of agricultural demonstration area of 2141 Mu(142.73 hm2). Tongxin County Xanthoceras spp. Planting High efficient water saving irrigation project area is located 10 km west of Tongxin town, located in Xinglong Township Li Bao village. The total planning project area is 10,000 Mu(666.67 hm2), of which 758 Mu(50.53 hm2) is shelter forest, road area account 141

for 400 Mu(26.66 hm2), other unused land (gully) area is 642 Mu(42.8 hm2), 8200 Mu(546.67 hm2)slope cultivated land will plant Xanthoceras sorbifolia with drip irrigation.

2. Water Resources Balance Analysis and Evaluation in Project Area 2.1 Analysis on Water Resources Guarantee Level of Water-saving Ecological Agriculture in Project Area 2.1.1 Water Conservation Degree of Eco-agriculture Comprehensive Demonstration Project Area in Yinchuan City The project planning and construction area is 12595 Mu(839.66 hm2), the amount and quality of groundwater is quite low. Therefore, the sole dependent water resource is transit Yellow River water. The total population in Yellow River and the lower reaches of the Yellow River irrigation area accounts for 12% of China, but developed and utilized 67% of Yellow River water resources in the Basin. Therefore, the shortage of water resources in the time and space of the Yellow River basin is increasing day by day. Using water-saving irrigation method to reduce water waste, and to improve water use efficiency is especially important for the sustainable development of industry and agriculture in the Yellow River Basin. In the total Yinchuan project area, binggou subproject area-the biggest one with 10026 Mu(668.4 hm2), is a implementation of high efficiency and water saving ecological forestry demonstration area. The water source of this largest area is only from Yellow River. New Yinchuan City Binhe Area Management Committee built pump station pumping water from the Yellow River through pipes. The water was pumped to the three new 100,000 cubic meters volume water reservoirs, and then deliver to different ecological planting area. Annual officially recognized water amount can be extracted from this water pumping station is 13.8 million m3. The construction of the cities of Ningxia along with the Yellow River were included in the national development strategy planning. In other word, the exploitation and utilization of nature resources were protected by national policy. Therefore, water resource exploitation for the sub-project area utilization was legal and can meet the needs of water-saving ecological agriculture and forestry sub-projects development. The implementation of high efficiency and water saving ecological forestry demonstration area in Wuhudun subproject area is only 428 Mu (28.53 hm2). Water source for the use in this area is from the already built upstream Hongdugou reservoir. The reservoir perennial storage capacity is 120,000 m3, upstream channels through various channels every year continue to run into the reservoir. Water resource is assured for this sub-project area utilization. Ma'anshan mountain efficient water-saving agricultural demonstration sub-project area is 2141 Mu(142.73 hm2). The main cultivation objects were fruit forest in this region. To form enough economic output of fruit tree, a large amount of water needed to supply. The only available water is still the Yellow River water, through the pumping station to store water in the existing and new reservoirs, and then distribute to agriculture, forestry and fruit industry of the project area. This subproject area has a large terrain with deeply slope and groove, the soil is rich in gravel with serious water leakage. More attention need to focus on the degree of water satisfaction. 2.1.2 Concentration of Water Conservation in High efficiency Water saving Irrigation Project Area in Tongxin County Xanthoceras spp. Plant demonstration of efficient water-saving irrigation project area is located in Lipu Village, Xinglong Township, Tongxin County. It is a hilly area, precipitation is scarce, but evaporation is strong. Most farmland is uncultivated due to lack of water. Less water resource hinder economic development. Daily life needed water resource is also very difficult to get, people still very poor. In order to solve the problem of food and clothing and drinking water in Xihaigu extremely poor mountain area, Tongxin Yellow River pumping irrigation project, Guyu and Haiyuan Yellow River pumping irrigation project gradually launched, opened a world-wide pioneering poverty alleviation irrigation project precedent. The pumped water solve 1 million human and animal drinking water requirement, as well as agricultural development irrigation water demand. Xanthoceras spp. Project area in Tongxin County is located in the area of Guyu and Haiyuan Yellow River pumping irrigation project and poverty alleviation irrigation project. The fourth, fifth, 142

sixth and seventh main pumping water canals were go though in this project area which provide irrigation water to 75000 Mu(5000 hm2) by the total canal length of 73 km. A total initial water rights of 161 million m3 was assigned to Tongxin County by Water Resources Department. Water Authority of Tongxin County allocated 33 million m3 water rights to the project area in accordance with the total area of 0.4 million Mu(26666.67hm2) of concentric irrigation area. The sixth canal of Guyu and Haiyuan Yellow River pumping irrigation project and poverty alleviation irrigation project has been built on the west side of Xanthoceras spp. planting area, the flow quantity allocated to Tongxin County is 1.2 m3 per second. 17 outlets along the canal with 4 water-saving small pumping stations as well as 7 reservoirs, all together control the field irrigation area of 23290 Mu(1552.67hm2), water saving irrigation area of 28500 Mu(1900 hm2), and solve 13742 people drink water demand, the yearly allocation water is 15 million m3. The results of the local survey were used to analyze irrigation water for farmland, the results are shown in Table 1. Table 1: Statistics on Sowing Area and Irrigation Volume of Guyu and Haiyuan pumping irrigation area in the Sixth Main Canal Design Design Single Actual water Wheat irrigated water Trunk name Years corn consumption （104Mu） area consumption （104Mu）（m3 /Mu) （104Mu）（m3 /Mu) Sixth Main Canal 2011 0.54 2.08 2.0 559 386

Sixth Main Canal 2012 0.055 3.18 2.0 579 356

Sixth Main Canal 2013 0.015 2.835 2.0 514 361

Average 0.20 2.70 2.0 551 368 Know from Table 1, the area of corn planting in pumping irrigated area is rapidly expanding, the actual sown area is far beyond the design irrigation area, resulting in the actual available irrigation water per unit of farmland is much lower than the designed. The contradiction of irrigation water amount between the upper and lower reaches is more and more prominent, led to drought area expanded, agricultural economic benefits dropped. The project area is planned to be 10,000 Mu(666.67 hm2), of which 758 Mu(50.53 hm2) is shelter forest, road area account for 400 Mu(26.66 hm2), other unused land (gully) area is 642 Mu(42.8 hm2), 8200 Mu(546.67 hm2)slope cultivated land will plant Xanthoceras sorbifolia with drip irrigation. Xanthoceras sorbifolia can resistant drought, cold, and barren, theoretical water demand is much lower than wheat, corn and other crops. Thus, the existing irrigation system can meet the needs of the water-saving agriculture development. 2.2 Irrigation System and Suitability Analysis of Water Saving Ecological Agriculture in Project Area 2.2.1 Analysis on Water - saving Irrigation System and Water Balance in Eco - agriculture Demonstration Project Area of Yinchuan City The current ecological agriculture demonstration project area of Yinchuan City mostly is wasteland, annual precipitation is only about 200 mm, effective precipitation is less than 150 mm, roughly equivalent to 100 cubic meters per mu. While the regional evaporation exceeds 2000 mm, aridity is more than 10, only suitable for drought-tolerant desert steppe and semi-shrub survival. New project area plan to develop artificial ecological shelter forest, ecological economic forest, intelligent facilities daylight shed, steel shed, drought-resistant plant container cultivation, alfalfa cultivation, Caragana cultivation, water consumption has increased to varying degrees. According to the design maximum daily water consumption of 4.0 mm per day，except the solar greenhouse with two season growth per year, crop growth period is about 150 days, annual consumption equal to 600 mm, equivalent to 400 cubic meters per mu, deduction from natural precipitation, need to net add 300 cubic meters of irrigation per mu. Yet sunlight Greenhouse actually needs 1000 cubic meters per mu per year. The project area is based on the basic parameters such as soil characteristics and climate 143

feature with the maximum irrigation quota 20 m3 per mu, drip 12 times per year, the annual irrigation water is 240 cubic meters. There are some gaps compare with actual water demand of 300 cubic meters per mu. Project design single maximum net irrigation quota 17 cubic meters per mu, irrigation interval is 6 days, follow the 120-day irrigation cycle, need to irrigate 20 times. The design of the number of irrigation 12 times can not be well to meet the normal growth requirements of crops, especially under the irrigation of alfalfa ineffective evaporation, water consumption will more than 600 cubic meters per mu. Sunlight greenhouse two season crops per year demand more than 1000 cubic meters water per mu or so. Therefore, the total 839.66 hm2 project area annual irrigation water consumption calculated with 3.0228 million cubic meters seems not able to match the actual demand. According to the average deviation of about 100 cubic meters per Mu, the actual water demand should be about 4.2 million cubic meters. Till 2016, Binhe New District of Yinchuan City with total 2360 hm2 of ecological and landscape green area. Binhe New District used to use furrow irrigation methods with irrigation quota of 390 cubic meters per Mu, annual water consumption of 13.8 million cubic meters. Since 2014, Binhe New District pay attention to save valuable water resources, the original irrigation methods were changed into drip irrigation, spraying irrigation and other water-saving way, the annual water consumption reduced from the original 390 cubic meters per Mu to 280 cubic meters per year. Thus, annual 3.894 million cubic meters of water was saved. The annual water demand for the project is 3.0228 million cubic meters, actual water demand more. The water resources that have been conserved in Binhe New District can basically balance the irrigation water demand of this project. This not only provides reliable water resources for this project, but also for the Binhe New District to add new ecological green space to create water conditions. 2.2.2 Analysis on Water-saving Irrigation System and Water Balance in High-efficiency Water-saving Irrigation Project Area in Tongxian County According to the actual experience of irrigation in recent years in Guhai pumping irrigation area including Tongxin County irrigation area, 570 hm2 cultivation land demand 2.297 million cubic meters water with conventional irrigation method. While the total actual consumption is 2.685 million cubic meters in the total 1330 hm2 cultivated land in the same area with highly efficient water-saving irrigation method. Significant benefits was get by water saving irrigation. The actual annual water distribution capacity in Tongxin County project area by the sixth canal is 11.113 million cubic meters, while the net irrigation water consumption is 5.651 million cubic meters, add to 1700 cubic meters drinking water requirement, the total water consumption is 5.6527 million cubic meters, 5.3603 million cubic meters water was saved. The total project area is 666.67 hm2, and net area is 546.67 hm2. Design of irrigation quota using "Ningxia agricultural irrigation water quota" to determine the quota for rational analysis, specific data in Table 3. Table 3: Analysis of irrigation quota of Xanthoceras sorbifolia growth period Irrigation Irrigation Irrigation water Irrigation Irrigated water Net irrigation quota quota requirement area area（Mu） utilization （m³/Mu/Year）（m³/Mu）（m³/Year） factor A 1640.0 12.00 0.9 120 196800 B 1460.0 12.00 0.9 120 175200 C 1680.0 12.00 0.9 120 224000 D 1720.0 12.00 0.9 120 229333 E 1700.0 12.00 0.9 120 226667 total 8200 1052000 Annual 120 cubic meters per Mu quota reference "Ningxia efficient water-saving irrigation" Twelfth Five-Year Plan", less than actual irrigation amount only can maintain the growth of Xanthoceras sorbifolia, but not enough to get a high yield, and thus can not get better planting income. According to the author in recent years in the project area around the wolfberry, grapes, apples and other cash crops research results, drip irrigation volume should reach 200 cubic

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meters per Mu to meet the needs of high yield. So the actual amount of irrigation should be reached to 1.64 million cubic meters. Taking into account decline in the Yellow River water the recent years, the National Yellow River allocated to Ningxia Yellow River water intake is also declining year by year. The average annual distribution of water in the sixth canal will be less than 10 million cubic meters, irrigation area is bound to intensify the degree of water shortage, the project area must adopt more stringent efficient water-saving irrigation technology in order to obtain sufficient planting benefits from Xanthoceras sorbifolia cultivation. The maximum net irrigation quota for the initial design of the project mmax=1000γz p(θmax-θmin), In the above formula: mmax: Maximum net irrigation quota mm; γ：Soil bulk density g/cm³，1.45； z：Plan the depth of the soil wetting layer，0.8m； p：Soil wetting ratio，30%； θmax、θmin—Suitable soil moisture content on the lower limit (% of dry soil weight, generally θmax for the field maximum water holding capacity of 85%, θmin for the field maximum water holding capacity of 65%，θmax-θmin=0.20θ field）； θ field：Soil field water holding capacity 23%； Calculated: mmax=16.01mm =10.7m3/Mu； Calculate the design irrigation cycle according to the given parameters: Tmax=Mmax/Ia In the above formula：T：Design irrigation cycle（d）； Tmax：Maximum irrigation cycle（d）； Ia：Crop design water supply intensity mm/d； Calculate the results according to Ia,Tmax=16.01/3.5= 4.6d，Design irrigation cycle to take 4.5d. According to the above calculation, the whole growth period of 122 days need to irrigation 27 times, irrigation capacity should be 290 m3 / year, and Table 3 in the design of the annual irrigation times only 10 times, the total irrigation volume of 120 m3 / year, far unenough to meet the normal need for high yield of Xanthoceras sorbifolia cultivation. Therefore, the original testable report in Table 7-4 designed Xanthoca water saving irrigation system needs to be further adjusted and scientific proof.

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Annex 1: water resouces balance analysis in Binhe New District of Yinchuan City

1. Water resources in the project area The planning and construction area of the project area is 12595 666、7 ㎡, and the surface runoff of the area is mainly the Yellow River, followed by the intermittent channels such as the Shuidong trench and the Bing trench. The Yellow River Ⅰ level terrace for the quaternary pore water, 10-20 m depth, water quality is poor, cannot be used to the life and the agriculture irrigation water ;In the area of Ordos platform, the loose rock pore water is buried deep (180-250 m), the water quality is poor, and the mineralization degree is greater than 3 g/L, which is difficult to use. The water in Bing trench sub-project is supplying from the Binhe New Area Administrative Committee, which is taken from the Yellow River water and through the water supply pipeline to the new three 100,000-m³ reservoir. Annual supply of Riverside New ecological water use indicators for 13.8 million m3. In the Wu hudun sub-project area, the water supply of Hong daogou reservoir has been built. The annual storage capacity is 120,000 m3, and the water supply for the Wu hudun sub-project area to ecological greening The water source of Ma anshan sub-project area is the Yellow River water, and through the pumping station to the existing and newly built reservoir, the project area agroforestry to carry on the water-saving irrigation. 2. Current Situation of Planting Structure in Project Area The status of the project area is wasteland, the project is artificial cultivation of ecological shelter forest, ecological economic forest, intelligent facilities sunlight greenhouse, steel shed, drought-resistant plant container cultivation, alfalfa cultivation, Caragana cultivation. 3. Irrigation mode selection In this project area, crops are planted mainly in agriculture and forestry, and in view of the soil, climatic conditions and topography conditions of the project area, intelligent and efficient and accurate water-saving irrigation techniques are adopted .Among them: the peripheral ecological protection forest, planting the Korshinsk Peashrub, the ecological economic forest uses drip irrigation, the road protective forest uses the trace amount irrigation technology ;Sunlight winder and steel frame are used for irrigation techniques of micro-spraying and drip irrigation. Alfalfa is using sprinkler irrigation.

Chart 1 List of irrigation options in the project area order project irrigation method remarks number 一 Bing trench sub-Project area

1 Peripheral ecological protection forest trickle irrigation

Trace amounts of 2 Road ecological protection forest irrigation 3 vegetation restoration zone trickle irrigation

4 Solar greenhouse and cold shed trickle irrigation、micro jet Water saving and drought enduring 5 trickle irrigation、micro jet plant cultivation 6 The farming area of the district trickle irrigation

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7 Alfalfa growing area sprinkling irrigation

二 Wu hudun sub-Project area

1 ecological shelter forest sprinkling irrigation

三 Ma anshan sub-Project area

1 Ecological economic forest seedling sprinkling irrigation

2 Ecological protection forest seedling sprinkling irrigation

3 Characteristic seedling cultivation sprinkling irrigation

4 Alfalfa planting sprinkling irrigation

5 Greenhouse sprinkling irrigation 4. water requirement estimation 4.1 Irrigation design parameters 4.1.1 Utilization coefficient of irrigation water According to the irrigation and drainage engineering design code (GB50288-99) "the relevant provisions, in combination with the project area is located in the arid zone of middle Ningxia, according to the hydrology and meteorology, soil and water resources, crops, irrigation area size, irrigation methods and comprehensive analysis to determine factors such as economic benefit, take irrigation farming crops irrigation design assurance rate of 90%. According to the design of planting patterns and irrigation mode, according to the fields of low pressure pipe irrigation engineering technical specifications "(GB/T20203-2006), the project area are planting by precise intelligent water-saving irrigation technology, the pipeline, the pipeline water use coefficient is 0.95, the field water utilization coefficient is 0.95, the irrigation water use coefficient is 0.95 * 0.95 = 0.9. 4.1.2 Design of the water consumption intensity of Ea (crops water consumption) According to the relevant information and the technical specification of microirrigation engineering, the Ea is calculated according to the following formula: Ea=Kc*Eo*Kr*Ks In fomular: Ea—Design daily water intensity Kc—Crop correction factor, 0.9 Kr—The correction coefficient of water consumption for crop shading ratio, Kr=Gc/0.85 Gc —Crop shade rate Eo—Maximum daily water intensity of crops, mm/d Ks—The loss coefficient associated with soil By calculating and combin the status of the project area, the maximum daily water consumption intensity of the design is 4 mm/d. 4.1.3 Soil wetting ratio P The Soil wetting ratio P is calculated by the lower form 0.785D2 0.785×1.02 P = w = =13% SeSl 2.0 × 3.0 In formula： Se—Spacing dripper along the capillary Dw—Wet zone width Sl—Capillary spacing According to the micro irrigation engineering technical specification, 147

the soil wetness ratio of micro irrigation design is 25% - 40%.According to the natural condition of the project area, planting mode and irrigation form, the design soil moisture ratio is 40%. 4.1.4 Plan wetting depth Z The depth of the planned wetting layer is set at Z=0.80m 4.2 Maximum net irrigation quota Formula for designing irrigation quota: mmax =0.001γZP(θmax－θmin) in formula: mmax—Maximum net irrigation quota, mm; γ—volume weight of soil, γ=1.45 g/cm3; Z—Planned depth of wetted layer, m; P—Design soil wetting ratio, % θmax、θmin—Suitable for soil moisture content and lower limit (accounting for the percent of the dry soil weight, the average theta Max is 90%,θmin is the water holding capacity in the field, and θmin is 65% of water holding capacity in the field, (that is θmax— θmin =0.25 theta field); (Generally take the field of water holding capacity of 80% -60%) θ 田—Soil field capacity was 22%(sandy soil generally about 15%) The calculation results are shown in table 2 Chart 2 An irrigation system calculation table Irrigation Soil Depth of Soil Maximum net field water Irrigation form bulk soil wetting wetting irrigation quota capacity utilization density layer ratio mmax factor (m³/666.6 m （mm）㎡) Drip irrigation, micro-spraying, 1.45 0.80 0.4 0.22 0.9 25.52 17.02 etc

4.3 Design irrigation cycle Design the irrigation cycle according to the formula: T≤Tmax Tmax＝mmax /Ia In formula: T—Design irrigation cycle(d) Tmax—Maximum irrigation cycle(d) Because no elution requirements, Ia=Ea=4.0 mm/d Calculated: ：Tmax=6.4 d，取 6.0 d 4.4 Design irrigation quota md=T·Ia m′= md /η in formula: md—Design net irrigation quota（mm） m＇—Design hair irrigation quota（mm） calculated: m＇=28.4 mm=18.9 m³/666.7 ㎡，取 m＇=20 m³/666.7 ㎡ 4.4.1 The duration of a irrigation should be determined by the following formula: ' m SeSL t = nqd In formula: t—For a duration of irrigation, h; m′—Designed for hair irrigation quota, 30mm; Se—Emitter spacing, 2.0 m; SL—Capillary spacing,3.0m qd—Emitter flow(Generally only about 2L / h drip) calculated: t=15 h；

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4.4.2 Crop water demand Crop water demand is generally analyzed using Penman formula and combined with irrigation test results. According to the Penman formula, the field water requirement ET0 of the crop was analyzed, and the crop coefficient Kc was modified according to the crop growth rate at different growth stages to determine the actual evaporation ET, calculated as follows:

P0 / P*∆ / y * Rn + Ea ET0 = p0 / p*∆ / r +1 ET0=ET0*Kc In formula: ET0—Crop potential evaporation（mm/d） P0—sea-level pressure（HPa） P—Local air pressure（Hpo） Δ—The slope of the saturated water pressure and temperature curves. R—hermometer constant Rn—Total net radiation Ea—Water evaporation Kc—crop coefficient 4.5 Estimation of irrigation water use The above calculation, per acre per irrigation quota of 20 m3, 12 times a year irrigation, annual irrigation water 240 m3;According to the above calculation of irrigation quota, the total area of the project area of 12595 666.7 ㎡, the annual irrigation water consumption of 302.28 million m3. Chart 3 Project area water demand table (drip irrigation) project number Irrigated area（666.7 ㎡） 12595（666.7 ㎡） Net irrigation quota (m3/666.7 ㎡\次) 17.02 m3 Hair irrigation quota (m3/666.7 ㎡\次) 20 m3 annual irrigation water demand (m3/666.7 ㎡) 240 m3 Water demand in the project area (10,000m3） 3,022,800m3 4.6 Analysis of Water Resources Balance As of 2016 Binhe New District, a total of ecological, landscape green area of 35400 666.7 ㎡. So there is no need to add new water targets. The irrigation quota is 390 m³ /666.7 ㎡ and the annual water consumption is 13.8 million m³. Since 2014, the Riverside New District has reduced its annual water consumption from the original 390 m³ /666.7 ㎡ to 280m³ /666.7 ㎡ for the purpose of saving valuable water resources and converting the original irrigation method into drip irrigation and sprinkler irrigation. Saving water 3.894 million m³. The annual water demand of the project is 302.28 million m³.The water resources saved by Binhe New District is larger than that of the project. Therefore, without the need of adding new water use index, the water consumption of Riverside New District is 3.894 million m³ of water The This is not only for the project to provide a reliable water resources, but also for the Binhe New Area to add new ecological green space to create water conditions.

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Annex 2: Evaluation of Water Resources and Analyze of Supply and Requirement Balance in Tongxin County Project Area

1. Utilization of water resources Guhai irrigation canal have fourth, fifth, sixth and seventh canals in the area of Tongxin, the total length of the canal is 73 km which control 5000 hm2 irrigation area in Tongxin. The water resources bureau of Ningxia assign total 0.161 billion initial water right to Tongxin irrigated area. The Water Authority of Tongxin County allocated 33 million m3 water rights to Guhai irrigation area according to total 26666.67 hm2 irrigation area in Tongxin. This planned project area has Guhai expansion irrigation sixth main canal in the west which has been built, the flow is designed of 11.85 m3/s, the total annual water supply is 164 million m3, the canal length is 34.06 km (assigned to Tongxin County 1.2 m3/s flow, with 17 bucket mouth along the Sixth canal, 4 water-saving irrigation pumping stations, 7 reservoirs, which control the field irrigation area of 1552.67 hm2, control water-saving irrigation area 1900 hm2, solving 13742 people's drinking demand, with a total 15 million m3 annual distribution of water). The sixth main canal is in the middle of Guhai irrigation area, water consumption is reduced year after year by the excessive use of water along with the canal, the drought area is expanded and the agricultural economic benefits are reduced. Table 1 Statistics on the annual water supply of the sixth main canal The The Whe Design Design the Actual Single The Subto amount name at irrigated water water corn rest tal of of the Year 666. area consumpti consumptio 666.7 666.7 666.7 water main 7 666.7hm onm3/666. n hm2 hm2 hm2 10000* canal hm2 2 7m2 m3/666.7m2 m3 Sixth 2011 0.54 2.08 0.28 2.90 2.0 1118.4 559 386 0.05 Sixth 2012 3.18 0.018 3.25 2.0 1157.1 579 356 5 0.01 Sixth 2013 2.835 2.85 2.0 1028.5 514 361 5 Average 0.20 2.70 1.4 3.00 2.00 1101.3 551 368 The run time of sixth main canal and bucket in Guhai pumping irrigation are are shown on Table 2, 3. Table 2 Table of the run time of six main canal The supply time Time Sequence number of source water Notes (Month. Day) (d) 1 4.5-5.11 37 2 6.1-6.30 30 3 7.1-7.31 31 4 8.1-9.4 35 5 10.25-11.20 27 Total 160

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Table 3 The table of the run time for control the sixth main canal area Ra The The The Summ te days of Water yield Winter days of Spring days of er Area of Planting structure summer Notes （1000*m³） irrigation winter irrigation spring irrigatio flo irrigatio irrigation irrigation n Sequence w n number net total Corn in white、 Corn (666.7 m³ water whe oth water corn Wheat in white Wheat monohydrate、 m2a) /s conten at er content monohydrate Wheat dihydrate t 601 140 0.1 3.9 6.3 28 112 4516.1 0.5 20774 2 13548 1.5 602 700 0.1 19.6 31.6 140 560 22580.6 2.5 103871 12 67742 7.5 603 150 0.1 4.2 6.8 30 120 4838.7 0.5 22258 2 14516 1.6 604 330 0.1 9.2 14.9 66 264 10645.2 1.2 48968 5 31935 3.6 605 300 0.1 8.4 13.5 60 240 9677.4 1.1 44516 5 29032 3.2 606 1100 0.1 30.8 49.7 220 240 9677.4 1.1 44516 5 106452 11.8 Reservoir 13742 0.1 23.7 26.3 0 0 100000.0 11.1 0 0 100000 11.1 for people 人 04 drinking 607 Reservoir 0.1 960 for 9600 28.8 31.7 0 0 70000 11.1 0 0 70000 7.8 04 0 supplement al irrigation 608 100 0.1 2.8 4.5 20 80 3225.8 0.4 14839 2 9677 1.1

Pumping station 0.3 240 178064 146129 Reservoir 12000 336 541.9 9600 587096.8 18.9 57 47.0 1 6 0 5 0 for facility Shishi 609 1500 0.1 42 67.7 300 1200 48387.1 5.4 222581 25 145161 16.2 610 5500 0.3 154 248.4 110 4400 177419.4 6.8 816129 31 532258 20.5 Reservoir Pumping station 0.0 300 for 2 3000 9 9.9 0 0 30000.0 6.9 0 0 30000 6.9 5 0 supplement Manchun al irrigation 611 100 0.1 2.8 4.5 20 80 3225.8 0.4 14839 2 9677 1.1

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612 350 0.1 9.8 15.8 70 280 11290.3 1.3 51935 6 33871 3.8 613 1000 0.1 28 45.2 200 800 32258.1 3.6 148387 17 96774 10.8 0.1 770 Reservoir 7700 28.49 31.7 95000.0 10.3 0 0 0 4.5-6.30 07 0 for plan Reservoir 0.1 240 614 2400 26.4 0 0 70000.0 6.8 0 0 70000 for 2 0 immigrant 1300 0.1 36.4 58.7 260 1040 41935.5 4.7 192903 21 125806 3000 0.2 93 135.5 600 900 150 240000.0 10.3 145161 6 240000 615 550 0.1 15.4 24.8 110 440 17741.9 2.0 81613 9 53226 616 170 0.1 4.8 7.7 34 136 5483.9 0.6 25226 3 16452 617 1600 0.1 44.8 72.3 320 1280 51612.9 5.7 237419 26 154839 Pumping station 0.0 1400 39.2 63.2 280 1120 45161.3 6.2 207742 29 135484 3 84 Forestry Bureau Reservoir 0.1 420 4200 46.2 0 0 120000.0 12.6 0 0 120000 for 1 0 immigrant Pumping station 4 Reservoir Mageda 0.1 820 for 8200 24.6 27.1 0 0 40000.0 4.2 0 0 40000 1 0 supplement al irrigation Total 1548. 693 2175 1851774. 422432 370774

Sixth Main Canal 1.321〉 1.430〉 0.9 〈1.2 water demand 1.2 1.2

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2. Current situation of water supply 2.1 Current situation of water consumption 2.1.1 Drinking water for people Township people drinking: according to the daily water supply capacity of no less than 20% to 30% or ensure that urban and rural people drink 40 L/person • d to determine; Some rural people who are connected with the township pipe network are determined by 20 L/person, water supply time is consider by 7 days. The total population of the project area is 12040, then the daily water requirement is 241 m3, 7 days water requirement is 1687 m3. The total water requirement for people drinking is 1687 m3. 2.1.2 Calculation for the demand of irrigation water Guhai pumping irrigated area by the sixth main canal is reach up to 1900 hm2, the main planting crop is corn and a very small amount of wheat. The crop planting structure is shown in the Table 4 in detail. Table 4 The table of planning for crop planting structure in irrigated area Ratio Irrigated area The name of the crop （％）（hm2） Wheat 0.5 9.5 Plastic membranes corn 99.5 1890.5 Total 100 1900 2.1.2.1 The assurance rate for irrigation design According to the Design Code for Irrigation and Drainage Engineering (GB50288-99), the irrigation design guarantee rate is 50% ~ 75% in the water shortage area that dominated by drought-resistant crops. The project area is a drought and scarce water areas, the design guarantee rate is 75%. 2.1.2.2 Irrigation water utilization coefficient Irrigation water utilization coefficient η = canal water utilization coefficient * field water use coefficient. Field irrigation have the form of membrane side irrigation, furrow irrigation, hole irrigation, etc., the field of water use coefficient is different, according to the area weight to take a comprehensive value, the field water use coefficient is 0.92 after calculated. Water supply in the irrigation area is low pressure pipeline water supply, pipeline water use coefficient take 0.97. The irrigation water utilization coefficient of conventional irrigation is 0.75. 2.1.2.3 Determination of irrigation system and analysis of water use According to the actual irrigation experience in this irrigation area and near the irrigation area, the crop irrigation system is set out in Table 5 according to the Ningxia agricultural irrigation water quota that issued by the autonomous region water conservancy department. Calculate the Irrigation rate by irrigate 22 hours per day. Table 5 Table fot Guhai irrigation system and water supply (0.855*10000*666.7m2 of conventional irrigation) Gross Wheat Corn Irrigation Irrigation Quota of irrigati Days of irrigation water flow time irrigating water on irrigatio 3 water require calculati （Month.D （m /666.7m2） requir n（d） requirement ment on ay） ement Whe Corn 10000m3 10000m 75% m3/s

at 3 0.50 99.50% % 4.25-5.6 12 60 0.3 0 0.3 0.0036 5.16-5.27 12 55 0.2 0 0.3 0.0033 5.28-6.10 14 60 0.0 51.0 68.1 0.6138 6.11-6.22 12 55 0.2 0.0 0.3 0.0033 6.23-7.4 12 55 0.2 0.0 0.3 0.0033 7.5-7.17 13 50 0.0 42.5 56.7 0.5508 7.31-8.13 14 45 0.0 38.3 51.0 0.4603 8.14-8.25 12 45 0.0 38.3 51.0 0.5371 11.2-11.22 21 65 60 0.3 51.0 68.4 0.4114 Total 123 290 260 296.6 The irrigation water use coefficient in irrigation area is calculated for 0.75 (Compilation of Design Data for Ningxia Poverty Alleviation and Irrigation Project), according to the proportion of crop cultivation, irrigation quota, the water consumption is 2.966 million m3. Table 6 Guhai six main canal irrigation system and water use (1.995*10000*666.7m2 of efficient water-saving irrigation) Wheat Gross Irrigati Corn Plastic irrigation irrigatio on Irrigation Whe water Days of membran water n flow time at require irrigation es corn requirem require calcul （Month.Day ment （d） ent ment ation ） 0.50 10000 99.50% 10000m3 75-90% m3/s % m3 0.008 4.25-5.6 12 60 0.60 0.0 0.80 4 0.007 5.16-5.27 12 55 0.55 0.0 0.73 7 0.596 5.28-6.10 14 30 0.00 59.6 66.17 7 0.007 6.11-6.22 12 55 0.55 0.0 0.73 7 0.007 6.23-7.4 12 55 0.55 0.0 0.73 7 7.5-7.17 13 30 0.00 59.6 66.17 0.642

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7 0.000 7.31-8.13 14 0 0.0 0.0 0.0 0 0.696 8.14-8.25 12 30 0.00 59.6 66.17 2 0.403 11.2-11.22 21 65 30 0.65 59.6 67.03 0 Total 122 290 120 268.53 Note: use wheat irrigation utilization coefficient as 75%, under the membrane of corn drip irrigation utilization coefficient as 90%. Efficient irrigation area of water consumption is 2.966 million m3; total water demand of irrigating sixth main canal is 2.927 +2.6853 = 5.651 million m3. 2.2 Current availability water supply The actual annual average water distribution of the sixth main canal is 11.013 million m3 in 2011-2013, the irrigation water consumption is 5.651 million m3 after the development of efficient water saving irrigation, the drinking water is 1.7 thousand m3, the total water consumption is 5.6527 million m3, the total annual water supply capacity is 11.53 million m3, the remaining water is 5.3603 million m3. 3. Water supply and demand balance analysis in Tongxin County Project Area 3.1 Water supply The actual annual average water distribution of the sixth main canal is 11.013 million m3 in 2011-2013, the irrigation water consumption is 5.651 million m3 after the development of efficient water saving irrigation, the drinking water is 1.7 thousand m3, the total water consumption is 5.6527 million m3, the total annual water supply capacity is 11.53 million m3, the remaining water is 5.3603 million m3. 3.2 Crop water demand (1) Irrigation design standards According to the micro-irrigation engineering technical specifications GB / T50485-2009, the drip irrigation design guarantee rate is 85%, the average annual rainfall is 277mm, this paper use above as the irrigation design standards. (2) Irrigation system design ① irrigation method The drip irrigation system is based on the theoretical analysis and results of calculation, it also refer to information of the similar existing irrigation test station, point in irrigation area and local people's irrigation experience and habits. Irrigation method is drip irrigation. Divided into summer and autumn growth period irrigation and winter irrigation, water distribution system is implementing the growth period and winter irrigation two water distribution system. ② irrigation quota According to the law of crop water demand, the change of soil water content and the distribution of effective precipitation, to comprehensive analyze the irrigation system of crops by the balance of farmland water and combined with the irrigation habits and irrigation experiment results of local people for many years. The irrigation quota for the crop growth period is determined according to the principle of the balance of farmland water in the depth of the wetland of the soil plan, according to the formula of the typical crop water demand. The crop water demand is calculated according to the Penman

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formula. This time use the quota that confirm in Ningxia agricultural irrigation water quota to rationality analysis. According to Ningxia efficient water-saving irrigation, the irrigation quota for irrigation design in the central arid zone is 120 m3 / 666.7m2 with 85% wetness guarantee. ③ irrigation water utilization coefficient According to Code for Design of Water Saving Irrigation Project (GB / T50363-2006) and Technical Specification for Low Pressure Pipeline Irrigation Engineering (SL / T153-95), the field water use coefficient of drip irrigation is 0.90. (3) Annual water consumption is shown in Table 7. Table 7 Analysis of irrigation quota for crop growth period Annual Irrigation Irrigated Net irrigation irrigation Irrigation Planting Irrigation quota water area quota water system crops （m³/666.7m2） utilization （666.7m2）（m³/666.7m2） requirement factor （m³/year） A 1640.0 12.00 0.9 120 196800

B 1460.0 12.00 0.9 120 175200 Xanthoceras C 1680.0 12.00 0.9 120 224000 sorbifolia D 1720.0 12.00 0.9 120 229333

E 1700.0 12.00 0.9 120 226667

Total 8200 1052000 3.3 Water resources supply and demand balance analysis The water consumption in the project area is 1.052 million m³, the annual water supply is 5.3603 million m³, 5.36303 million m³> 1.052 million m³. The annual water supply is fully capable the planned annual water requirement.

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