E1187 v2 rev

LIVESTOCK WASTE MANAGEMENT IN EAST ASIA Project Preparation under the PDF-B Grant

Public Disclosure Authorized

Annex 3A Public Disclosure Authorized Environmental Impact Assessment, Guangdong, PCR Final Draft

Public Disclosure Authorized

Prepared by: Dr. Zhang Yinan Department of Environmental Science, Zhongshan University

Public Disclosure Authorized

September, 2005 Table of Contents 1 Introduction and Project Background...... 1 1.1 Purpose of the Report ...... 1 1.2 Brief Introduction to the EA Report...... 2 1.2.1 Importance of the Project...... 2 1.2.2 Structure of the Report...... 3 1.3 Bases of Assessment...... 3 1.3.1 Laws and Regulations...... 3 1.3.2 Technical Documents...... 5 1.3.3 Main Design Documents...... 5 1.4 Principles of Environmental Assessment ...... 5 1.5 Relationship to Feasibility Study...... 6 1.6 EA Team...... 7 1.7 Assessment Scope and Periods Covered ...... 8 1.7.1 Assessment Scope...... 8 1.7.2 Periods Covered...... 8 1.8 Assessment Factors ...... 8 1.9 Assessment Focus and Categorization...... 9 1.10 Assessment Criteria...... 13 1.11 Assessment Focus and Categorization...... 14 1.12 Assessment Procedure...... 14 2 Policy, Legislation & Administration Framework ...... 16 2.1 Organizations & Administrative Framework ...... 16 2.2 National Policy & Strategy for Environmental Protection...... 16 2.3 WB Requirements ...... 17 3 Project Description ...... 18 3.1 Project Goals ...... 18 3.1 Project Goals ...... 19 3.2 Project Objectives...... 19 3.3.2 Demonstration of Livestock Waste Management Component...... 20 3.3.3 Development of Decision Support Tools and Regional Coordination Component...... 20 3.3.4 Project Management and Monitoring Component...... 21 3.4 Indicators of Project Success...... 21 3.5 Project Area...... 22 3.6 Project Implementation Schedule...... 22 3.7 Project Investment...... 22 4 Description of Existing Environment...... 23 4.1 Description of Existing Environment of Guangdong...... 23 4.1.1 Physical Environment of Guangdong...... 23 4.1.2 Ecological Environment of Guangdong...... 26 4.1.3 Socio-cultural Environment of Guangdong...... 28 4.2 Description of Existing Environment of Boluo county ...... 36

ii 4.2.1 Physical Environment of Boluo ...... 36 4.2.2 Ecological Environment of Boluo...... 39 4.2.3 Socio-cultural Environment of Boluo ...... 40 5 Public Participation ...... 44 5.1 Consultation Method and Subject...... 44 5.1.1 Consultation with Family or Individual...... 44 5.1.2 Inter-agency and NGO Consultation...... 44 5.2 Public Opinion and Suggestion ...... 45 5.3 Information Disclosures and Feedback ...... 46 5.1.3 Information Disclosure Plan of the PMO...... 46 5.4 Beneficial Participation Plan ...... 46 5.5 Summary of Public Participation...... 47 6 Analysis of Alternatives ...... 48 6.1 Analysis of “Without Project” Alternative...... 48 6.1.1 Current Status of Livestock waste management/disposal ...... 48 6.1.2 Current Status of Natural water, soil and air...... 49 6.1.3 Present status of applied research, extension and training...... 49 6.2 Analysis of “With Project” Alternative ...... 50 6.2.1 Analysis of Reducing pollution...... 50 6.2.2 Analysis of “With Project” Alternative ...... 51 7 Analysis of Environmental Impacts & Proposed Mitigation Measures...... 53 7.1 Potential Sources of Effect ...... 53 7.2 Analysis of Environmental Impact & Proposed Mitigation Measures in Construction Phase, Guangdong ...... 54 7.2.1 Flora and Fauna and Nature reserves ...... 54 7.2.2 Soil Erosion...... 55 7.2.3 Acoustic Environment ...... 56 7.2.4 Air Quality ...... 57 7.2.5 Cultural Heritage...... 58 7.2.5 Minority Nationalities...... 58 7.3 Impacts & Proposed Mitigation Measures During Project Operation in Boluo County of Guangdong ...... 59 7.3.1 Lagoon System ...... 59 7.3.2 Biogas production...... 64 7.3.3. Soil application...... 67 8 Environmental Management Plan ...... 71 8.1 Implementation Organizations and Responsibilities ...... 71 8.1.1 Implementation Organizations...... 72 8.1.2 Role of PMO and Environmental Monitors...... 75 8.1.3 Supervision Organization...... 76 8.1.4 Environmental Management Plan...... 76 8.2 Environmental Monitoring Plan, Guangdong...... 91 8.2.1 Monitoring Items ...... 91

iii 8.2.2 Monitoring Implementer...... 91 8.2.3 Monitoring Report System...... 91 8.2.4 implementation/construction Monitoring (Baseline data)...... 91 8.2.5 Monitoring during Operation...... 93 8.2.6 Environmental Monitoring Budget...... 93 8.3 Environmental Training/Institutional Strengthening Plan...... 95 8.3.1 Training Objectives...... 95 8.3.2 Training Courses, Guangdong ...... 96 8.4 Budgets of Guangdong...... 97 9 Environmental Guidline ...... 98 9.1 Demonstration Area Selection...... 98 9.2 Environment management plan...... 98 9.2.1 Environmental Impact Analysis ...... 98 9.2.2 The mitigation measures ...... 99 9.3 Recommendations and Environmental Requirements...... 99 10 Conclusions and Recommendations...... 100 10.1 Major Conclusions...... 100 10.1.1 Selection of Project Areas...... 100 10.1.2 Environmental Impact Analysis and Mitigation Measures ...... 100 10.2 Recommendations ...... 101 10.2.1 Follow-up Program...... 101 10.2.2 Public Participation...... 102 10.2.3 Further Suggestions and Environmental Requirements...... 102 11 List of References...... 103 Appendix 1 Terms of References...... 104 Appendix 2: EA Team, Guangdong ...... 106 Appendix 3 Minutes of Public Discussion ...... 108 Appendix 4 Environment Standard ...... 111 Appendix 5 Public Health Assessment...... 117

iv List of Tables

TABLE 1-1 PRELIMINARY IDENTIFICATION MATRIX FOR MAIN ENVIRONMENTAL IMPACT FACTORS OF LWMEP...... 10 TABLE 3-1 PROJECT COUNTY DISTRIBUTION AND PRODUCTION SYSTEM ...... 22 TABLE 4-1 MAIN RIVER SYSTEM AREA GROUNDWATER RESOURCE DATA ...... 25 TABLE 4-2 LAND USE STATUS IN GUANGDONG PROVINCE , 2002...... 34 TABLE 4-3 THE CLIMATIC CHARACTERISTICS OF THE PROJECT COUNTY ...... 36 IN GUANGDONG PROVINCE ...... 36 TABLE 4-4 THE CHARACTERISTICS OF THE RIVERS IN GUANGDONG PROJECT COUNTY...... 37 TABLE 4-5 SURFACE WATER QUALITY IN BOLUO OF GUANGDONG PROVINCE IN 2003...... 37 TABLE4-6 SITUATION OF WASTEWATER DISCHARGE OF EACH COUNTY OF HUIZHOU CITY 2002.... 38 TABLE 4-7 IMPORTANT NATURE RESERVES RELATED TO THE PROJECT COUNTIES ...... 40 TABLE 4-8 THE POPULATION OF THE PROJECT COUNTY IN GUANGDONG PROVINCE ...... 40 TABLE 4-9 LAND USE STATUS IN PROJECT COUNTY IN GUANGDONG PROVINCE (2002) ...... 41 TABLE 4-10 CROP AREA AND YIELD INFORMATION FOR PROJECT COUNTY (2002) ...... 41 TABLE 4-11 PUBLIC HEALTH SURVEY OF BOLUO COUNTY...... 42 TABLE4-12 PUBLIC HEALTH SURVEY OF JIUTAN AREA IN YUANZHOU TOWNSHIP ...... 43 TABLE 6-1 POLLUTANTS CONTENTS OF PIG PRODUCTION WASTEWATER ...... 50 ACCORDING TO DIFFERENT REFERENCES (G/L) ...... 50 TABLE6-2 REDUCTION OF POLLUTION AFTER IMPLEMENTING THE PROJECT...... 50 TABLE 7-1 ESTIMATED NOISE VALUE OF CONSTRUCTION MACHINERY ...... 56 TABLE 7-2 NOISE LIMIT AT CONSTRUCTION SITE (GBL2523—90) UNIT DB(A)...... 57 3 TABLE 7-3 AMBIENT AIR QUALITY STANDARD MG/M ...... 61 TABLE 7-4 STANDARDS OF NOISE AT BOUNDARY OF INDUSTRIAL ENTERPRISES...... 62 GB12348—90 DB(A) ...... 62 TABLE 8-1 ENVIRONMENT SUPERVISION PLAN, LWMEAP, CHINA...... 77 TABLE 8-2 ENVIRONMENT MANAGEMENT PLAN FOR LWMEAP, CHINA...... 80 TABLE 8-3 CONSTRUCTION AIR QUALITY MONITORING PROGRAM ...... 92 TABLE 8-4 NOISE MONITORING PROGRAM DURING CONSTRUCTION...... 93 TABLE 8-5 COST ESTIMATE FOR WATER QUALITY ANALYSES AT GUANGDONG PROVINCETABLE 8-6 COST ESTIMATION OF SOIL QUALITY ANALYSES AT GUANGDONG PROVINCE...... 93 TABLE 8-6 COST ESTIMATION OF SOIL QUALITY ANALYSES AT GUANGDONG PROVINCE ...... 94 TABLE 8-7 COST OF ENVIRONMENTAL MONITORING AT IMPLEMENTATION SITES, GUANGDONG ... 95 TABLE 8-8 SALARY COST OF ENVIRONMENT PROTECTION STAFF OF PMOS, GUANGDONG...... 95

v List of Figure

FIGURE 1-1 ASSESSMENT PROCEDURES FOR THE EA OF LWMEAP...... 15 FIGURE 2-1 ORGANIZATIONAL STRUCTURE OF ENVIRONMENTAL ADMINISTRATIVE FRAMEWORK 17 FIGURE 3-1 MAP OF GUANGDONG AND PROJECT COUNTIES ...... 18 FIGURE 4-1 SKETCH MAP OF DONGJIANG WATER SYSTEM SURFACE WATER PROVINCIAL CONTROL MONITORING SECTIONS SITE ...... 39 FIGURE 8-1 ENVIRONMENTAL MANAGEMENT ORGANIZATION DURING CONSTRUCTION STAGE .... 73 FIGURE 8-2 ENVIRONMENTAL MANAGEMENT ORGANIZATION DURING OPERATION STAGE...... 73 FIGURE 8-3 MONITORING REPORT CHART, GUANGDONG...... 92

vi List of Abbreviations

AHB Animal Husbandry Bureau BOD Biological Oxygen Demand COD Chemical Oxygen Demand CPMO County Project Management Office DO Dissolved Oxygen EA Environmental Assessment EC Electrical Conductivity EDC Ecological Demonstration County EIA Environmental Impact Assessment EMP Environmental Management Plan EMS Environmental Monitoring Station EP Environmental Protection EPB Environmental Protection Bureau FS Feasibility Study IFA International Fund Association MOA Ministry of Agriculture PEMO Provincial Environmental Management Office PLG Project Leading Group PPMO Provincial Project Management Office PRC Peoples Republic of China SEI Significant Environmental Issue SDPC China State Development and Planning Commission SEPA State Environmental Protection Agency TSS Total Suspended Solids TSP Total Suspended Particulates WB World Bank TOR Terms of References LWMEAP Livestock waste management project in China OPER Operation stage IMP Implementation stage Exchange Rate US$ 1.0 = 8.27 RMB (As of July 18, 2004)

ix Executive Summary

China, Thailand and Vietnam three countries and FAO/LEAD had approached the World Bank to request assistance from GEF for a regional ‘Livestock Waste Management in East Asia Project’. The proposal for this Project was approved by GEF Secretariat (under International Waters/Contaminant-based Operational Program #10) into pipeline entry on June 13, 2003. In order to reach the project objectives, four main project components are identified. The project components and all activities to be financed under these components are integrated, i.e., they are building on each other and generate a joint benefit that would not be achievable if the components were implemented separately. A consequence of this approach is that most of the activities are closely linked to the geographical area and livestock development/management schemes. The main project components are: (i) Conducive Policy Framework Component; (ii) Demonstration of Livestock Waste Management Component; (iii) Development of Decision Support Tools and Regional Coordination Component; (iv) Project Management and Monitoring Component Government of People’s Republic of China (PRC) and Guangdong Province have applied for inclusion in the proposed GEF project to support the promotion of Livestock Waste Management in Guangdong Province and in cooperation with other countries in the region, reduce the negative local and global environmental impacts of rapidly increasing livestock production in the watersheds of Pearl River. The Project has been designed in order to lead to reduction of land-based pollution from livestock production of the international water of the South China Seas. The Livestock Waste Management Project in Guangdong has selected Yuanzhou Township of Boluo County as demonstration sites. However, to this date project has not decided which farms should be used as demonstration farms. Its annual average temperature varies from 19°C in the north to over 23°C in Leizhou Peninsula in the south. In January, its average temperature varies from 9°C in the north to 16°C in the south, while in July, from 28°C to 29°C, with an annual evaporation amount of 1,000mm in the north and 1,200mm in the south respectively. Influenced by the monsoons from the SE, it has plentiful rainfall of 1,500mm-2, 000mm annually with 40 percent falling during the summer. The annual sunshine is about I, 750 hours in Northern Guangdong, 1,800-2,000 hours in the middle, and 2,000-2,200 hours along the coast. With plenty of rainfall and lots of sunshine, life is thriving here, with a large diversity of fruits, vegetables, and many other plants. Table 4-1 presents the “typical” climatic data for selected project county. The total project investment in the three countries (China, Thailand and Vietnam) is approximately 31.7 millions USD, including GEF contribution of about 7 millions

x USD, LEAD contribution of about 0.5 millions USD, governments contribution of about 6 millions USD and private sector investment of about 18.2 millions USD. The environmental and social analysis of the Livestock Waste Management Project indicated that if the project is implemented successfully, it would have no major direct negative impact on the natural environment, its overall social and environmental impact would be positive. The project, should improve and support an integrated and comprehensive approach to managing and reducing livestock production nutrient load that is currently polluting the local and international waters, and strengthen institutional capacity and decision-making systems for livestock management at the Guangdong provincial levels in PRC. The achievement of these objectives should lead to reduction of soil and water pollution from livestock liquid and solid manure, leading to improvement of national and international water quality and public health, and a more equitable distribution of benefits generated from the rapidly growing livestock production. The project should create greater economic and social stability in the project areas as well as enhance institutional capacity in the project-selected areas and the whole province to better implement effective Environmental Protection Plans. It is recommended that the GEF, FAO, World Bank and relevant departments in China support the implementation of this project and urge the earliest start of the project. The negative impact to the environment during implementation/construction phase of the project in Guangdong is temporal with very limited magnitude. The major potential impacts to the environment include: impact to vegetation due to temporary land occupation at the construction sites, pollution of waste of daily life at the construction site and noise and dust of the construction machinery. If the mitigation measures proposed in the Report were implemented properly, the negative impact to the environment during implementation/construction phase can be minimized. During operational phase, potential environmental issues that are identified in the report include: (1) potential impact (Nutrient overload) on surface and groundwater resources, and soil, if wastewater from cleaning of breeding facilities or from biogas/lagoon ponds applied intensively on cropland not according to the soil character and nutrient condition, or discharged to the surface water not reaching the discharge standard (2) potential soil pollution through applying waste sludge from respective manure management facilities improperly on croplands, (3) potential adverse impact on biodiversity, contagious animal diseases on wildlife, increase in plant diseases and yield reduction if improper or intensive application of effluents on soil, (4) potential air pollution (toxic gases and odor) as well as greenhouse effect

(CO2, CH4), in case biogas reactors gas collection systems are not working properly, and fermentation of livestock manure, and (5)construction of a lagoon/central biogas/waste water treatment facility in project site will occupy a relatively large area of farm land. Water pollution can negatively impacts the quality of both surface and groundwater resources within and downstream of the project area. Risk of spills, structure failure, and purposeful discharges must be taken into account. The potentially contagious

xi animal diseases caused by dangerous pathogens, bacteria and virus can be spread out through the application of untreated swine wastes and can cause proliferation of diseases. In addition, nutrients pollution in the water bodies may occur through leaching of nutrients accumulated in soil, when excessive amounts of solid and liquid manure were applied. Regarding each possible adverse impact, corresponding mitigation measure is proposed for the purpose of preventing or reducing it to insignificant levels. The use of better watershed management and best management practices based on the latest findings of research and extension component of the project should guide livestock farmers and managers in use of rational and environmentally balanced methods to reduce point and non-point source pollution within the project areas. In order to cope with the complex environmental issues, an environmental management plan (EMP) including institutional strengthening, environmental training and environmental monitoring plan is developed, and is presented in Chapter 8, in which the responsibilities of the Project Management Office and other related institutions, environment management training and environment monitoring plan and cost have been clearly spell out. The EMP should be strictly implemented to ensure that the proposed project would have neither significant nor irreversible adverse impact on the natural environment of the project area

xii 1 Introduction and Project Background The substantial problems arising from growing and intensifying livestock production to the local and global environment are increasingly recognized by countries in East Asia. The Governments of China, Thailand, and Vietnam have been working over the last few years on strengthening their policies and regulations to reduce these negative effects. The donor initiative LEAD has provided financial and technical assistance on this issue to these three countries. Nevertheless, pollution from intensive livestock is still increasing at considerable rates throughout the region. Before this background the three countries and FAO/LEAD had approached the World Bank to request assistance from GEF for a regional ‘Livestock Waste Management in East Asia Project’. The proposal for this Project was approved by GEF Secretariat (under International Waters/Contaminant-based Operational Program #10) into pipeline entry on June 13, 2003.

Government of People’s Republic of China (PRC) and Guangdong Province have applied for inclusion in the proposed GEF project to support the promotion of Livestock Waste Management in Guangdong Province and in cooperation with other countries in the region, reduce the negative local and global environmental impacts of rapidly increasing livestock production in the watersheds of Pearl River. The Project has been designed in order to lead to reduction of land-based pollution from livestock production of the international water of the South China Seas. The Livestock Waste Management Project in Guangdong, covering Boluo County in Guangdong Province that hereafter is called LWMEAP are the outcome of this Project. 1.1 Purpose of the Report The proposed Livestock LWMEAP in Guangdong Province of PRC aims at improving and supporting an integrated and comprehensive approach to managing and reducing livestock production nutrient load that is currently polluting the local and international waters, and to strengthen institutional capacity and decision-making systems for livestock management at the Guangdong provincial levels in PRC. The achievement of these objectives should lead to reduction of soil and water pollution from livestock liquid and solid manure, leading to improvement of national and international water quality and public health, and a more equitable distribution of benefits generated from the rapidly growing livestock production. The project should create greater economic and social stability in the project areas as well as enhance institutional capacity in the project-selected areas and the whole province to better implement effective Environmental Protection Plans.

The aims of this EA report include: (i) Qualitative analysis and assessment of present natural environment and the socio- economic conditions in the project areas and determine the scope and extent of future impacts. The implementation of the project is reviewed and examined in terms of environmental protection; (ii) To determine the potential environmental impacts and to disseminate the findings of the project to other areas; and (iii) To prepare mitigation measures to reduce/eliminate the potential negative environmental impacts, enhance the positive impacts of the project, and prepare an environmental management plan (EMP) for pre-implementation, implementation, construction and operation of the project to ensure environmental sustainability of the project.

The terms of reference (TOR) for compilation of EA report between the Technical executive Organization (FAO) and the Local Consultant on EA is presented in Annex A. 1.2 Brief Introduction to the EA Report 1.2.1 Importance of the Project Urbanization and population increase and improvement of living standard in Guangdong Province of PRC has increased the demand for meat products and provided the favorable economic condition for livestock development. Urbanization and increase in demand for animal products have been accompanied with the specification and intensification in animal production and disintegration of crop and animal producers. Majority of livestock production operations in China are based on household business and small private farms or enterprises. Due to high demands, household and farming income has been increasing steadily in the animal breeding areas of Guangdong province . However, the economic development has caused environmental pollution and poor health condition within high population density cities and counties in the Pearl River Delta, including ZengCheng, XinHui, BoLuo, GaoMing and SiHui. DongGuan City. Surface and ground water quality data monitoring have shown appreciable increase in organic and nutrient loading of water resources and their bacterial contamination.

Biogas digester has been used in some private farms to treat livestock (pig) waste. The National Strategy has had programs to support the farmers to install biogas. Although techniques for building and operating biogas digesters are not difficult, but not all operations are appropriately implemented. Many constructed biogas tanks are now unused, broken down, waste material, and/or leaking gas that has negative impact on local inhabitants, some biogas tank are designed too small to treat the produced livestock waste on the farm. In addition, the discharge leakage from biogas tanks have not met the discharge standards for the domestic wastewater as stipulated in Discharge Standard of pollutants for livestock and poultry breeding (GB18596-2001).

The main problem of livestock waste management in Guangdong Province is that limited options for livestock waste management and recycling are being introduced and implemented. The lack or inadequacy of integration between animal production and crop production, lack of appropriate economic analysis to assist policy makers in making the appropriate decisions with regard to manure management policies and in balancing economic development, soil fertility/manure application on land, and environment protection. The environmental pollution problems are significant at medium scale farms and even more problematic when dealing with the small scale farms (multiple-point source pollution). The proposed project, if properly implemented, should strengthen the institutional capacity in dealing with livestock waste issues and provide valuable information on appropriate and adaptive livestock waste management technologies in the Province, providing great assistance to the planners and policy makers in developing and enforcing the appropriate environmental laws and policies on Livestock Waste Management to reduce nutrient loading in the Pearl River Delta and ultimately, the South China Sea.

2 Livestock production of medium and small scale farms in Guangdong is less developed compared to larger scale farms in Guangdong and some other countries in the region. The proposed project could have significant positive impact in creating good opportunities for improvement of health status in the surrounding communities, reducing nutrient loading of surface and groundwater resources, reducing the need for use of expensive and highly energy demanding inorganic fertilizers on farmers’ fields, and increasing the quality of the livestock (especially pig and poultry) and lifestyle in the farming communities. Implementation of the proposed project, although not in a large scale, could have significant positive impact at pilot level on methodology used to improve the status and quality of livestock and livestock environment and related natural resources (protection of water resources, water use efficiency, protection of soil resources and nutrient loading). In addition, the livestock farmers, living within the neighboring district and provinces, could also adapt the lessons learned from the project implementation site that could provide additional intangible project benefits.

The Project is seeking a win-win approach, i.e. to both develop livestock through hygienic environmental improvement, and assure sustainable reutilization of manure resources through nutrient balanced and timely application of manure for crop production. Capacity building at the provincial, county, and farm level should create better and more sustainable livestock development, more efficient waste management, and a better cost - benefit presentation of the proposed changes to motivate pubic participation in proposed livestock waste management options. 1.2.2 Structure of the Report The report provides an assessment of the environmental impacts of the development of LWMEAP. It is arranged in the format provided by the World Bank for rural development projects to respond to the requirements of both World Bank and SEPA. Section 2 describes the institutional and administrative framework and the national policies and strategies in relation to such development schemes. Section 3 provides a description of the proposed development project, while Section 4 provides a description of the existing physical (natural), ecological and socio-economical environment, which is specific to the proposed project and neighboring areas. Section 5 describes the public participation whereas Section 6 describes the alternatives that have been considered in the project planning process, mainly with or without the project. Section 7 identifies the potential impacts that could be expected from the proposed project both during construction and operation and proposes viable mitigation measures for to minimize these impacts. Section 8 is devoted to the presentation of an environmental management plan (EMP) for the proposed project including the implementation framework, a mitigation plan, a monitoring plan for the pre-implementation, implementation/construction and operation periods and a training plan, while section 9 presents the general conclusions and recommendations. 1.3 Bases of Assessment This assessment was carried out according to the laws and regulations of the PRC and the World Bank technical documents. A list of the material used for the preparation of this report is presented below. 1.3.1 Laws and Regulations - Environment Protection Law of the PRC (December 26, 1989); - Water and Soil Conservation Law of the PRC (June, 1991);

3 - Prevention and Treatment Law of Atmospheric Pollution of the PRC (September, 2000); - Prevention and Treatment Law of Water Pollution of the PRC (May, 1996); - Prevention and Treatment Law of Noise Pollution of the PRC (October, 1996) - Prevention and Treatment Law of Solid Waste Pollution of the PRC (October, 1995); - The Administrative Rules for the Environmental Protection of Construction Projects (The State Council Decree No. 253, November 18, 1998); - The Administrative Rules of the Water & Soil Conservation Law of the PRC (June, 1991); - The Administrative Rules of The Land Administration Law of the PRC (August, 1998); - Rules for the Environmental Protection for basic cropland(The State Council Decree No.257, December, 1998); - The Land Administration Law of the PRC (January,1999); - Administrative Regulations of Environment Protection for Development Projects (The State Council Decree No.253, November, 1998); - List of Construction Project Environmental Protection Classification Management (Order No. 14 of SEPA, October 2002); - Proposal on Strengthening Ecological Protection Work (SEPA, Order No.785, November 1997); - Animal Epidemic Prevention Law of The PRC (January, 1998); - Interim Management Regulation of National Animal Epidemic Situation Observation and Report System (June, 2002) - The Regulations on Nature reserves of the PRC (The State Council Decree No. 167, September 2, 1994); - The Regulations on Protection of Wild Flora of the PRC (The State Council Decree No. 204, September 30, 1996); - Notice on Further Strengthening the Administration of Nature reserves in the PRC (The State Council, No.111, 1998); - Stipulations on Environmental Administration Issues for Development Projects (State Environment Development (88) No.117); - Regulations of Guangdong Province on Environmental Protection (September,1997); - Regulations of Pearl River Delta of Guangdong Province on Water Quality Protection (January, 1999); - Administrative Regulations of Environment Protection for Development Projects in Guangdong (September,1997); - Guangdong Provincial Implementation Measures of Law of the PRC on Prevention and Control of Pollution From Environmental Noise (December, 1997); - Interim Plan for Regionalizing Surface Water Function in Guangdong Province (November 1999); - Industrial Criteria for Environment Protection of PRC “Technical Directive for Environmental Impact Assessment (General programme, Atmospheric environment, Surface water environment” (HJ/T2.1-2.3-93); - Industrial Criteria for Environment Protection of PRC “Technical Directive for Environmental Impact Assessment (Sound Environment)” (HJ/T2.4-1995); - “Technical Directive for Environmental Impact Assessment (Ecological Environment)” (HJ/T19-97);

4 - Regulation of Techniques for Comprehensive Control of Soil Erosion (GB/T 16453.116453.6—1996) - Standards of Classification for Soil ErosionSL190-96 - “Technical standard of preventing pollution for livestock and poultry breeding”(HJ/T81-2001) 1.3.2 Technical Documents - The World Bank Operational Policy 4.01, 4.04, 4.10; - The World Bank Policy on Disclosure of Information; - Terms of References (TOR) for an Environmental Assessment of the Project. 1.3.3 Main Design Documents - Proposal for Project with the GEF Fund; - Feasibility Study Report for Project with GEF Fund; - Proposal of the World Bank Loan CGID Project;

All the above documents are available at the FAO representative office in PRC, World Bank Office in Beijing, and/or the PMO. 1.4 Principles of Environmental Assessment This EA has been prepared to satisfy the requirements of both the World Bank, SEPA and Guangdong Environment Protection Bureau (EPB) on environmental impact assessment of development projects. The principles of the sustainable development objective and scientific evaluation are followed in the EIA and design of the environmental management plan for the LWMEAP. The same attention is paid to both sustainable economic development and environmental protection through the use of appropriate livestock waste treatment technology and environment protection so that the “handling without harm” and agriculture growth can keep pace with the environmental protection and does not cause significant negative environmental impacts. Special attention is paid in this study to ensure that livestock wastes within project areas are reduced as much as possible, and the produced wastes (liquid and solid manure) is reused in farms as much as possible to reduce to use of inorganic fertilizers in crop production. Special attention is made to ensure that project is developed in a sustainable manner and detailed environmental management plan is developed to minimize/prevent any potential damage that project might cause on the natural (ecological) or social environment and enhance its positive impacts. As soon as specific project areas (sub-catchments) are identified within the province, more detailed environmental assessment of such components should be made to ensure that potential negative impacts on ecological and social environment are kept to minimum. For activities that could potentially cause environmental pollution (soil/water/air), more detailed and project specific measures will be developed in order to provide basic documents of environment protection to be used during project implementation. To prevent duplication of effort and to reduce the project preparation cost, the EA team has made full use of the available data and findings in preparation of this report.

Since the project is generally a livestock waste management project and does not include any major land clearing or big construction activities, it is classified as a Category B project according to the World Bank Operational Policy (OP 4.01). Therefore, the EA is carried out in a “simplified way” with main attention of the study being on the significant environmental issues (SEI) likely to be caused by the project.

5 This assessment was made based on the consultations with the World Bank consultants, Chinese Environmental specialists and Guangdong EPB.

An assessment method of environmental matrices is used for this EA. This method has been widely used in the environmental assessment of various projects since proposed by Leopold, et al.1 (1971). An environmental matrix employs a list of project activities and a list of environmental parameters or impact indicators. The two are related in a matrix in order to identify cause–effect relationships. Column headings generally list the project activities while the row headings show the environmental parameters of the affected system. Entries in the resulting matrix cells may simply show that an interaction takes place or they may be qualitative or quantitative estimates of the interaction. Table 1-1 represents the preliminary identification matrix, prepared for the LWMEAP. 1.5 Relationship to Feasibility Study According to the provisions in Clause 9 and 17 of Environmental Protection Regulations for Construction Projects, project construction unit should submit its EA report to the pertinent environmental protection agency with authority to review and approve, and the approval should be obtained during the feasibility study of the project. In the preliminary design report, a specific chapter should cover environmental protection, inclusive of related national environmental standards, environmental impact mitigations and relevant design. In addition, it should also cover the possible environmental impact from the project, mitigative or preventive measures to reduce/prevent environmental impact and potential causes of environmental pollution.

As required by the World Bank, the EA report was prepared simultaneously with project preparation. Report was prepared in close cooperation with the local PMO, the social assessment (SA) team, other project teams working on different project components, review of the feasibility study report and consultation with the local communities, and farmers. The EA team has conducted extensive discussions with the SA team and prepared questionnaires related to environmental issues to be asked by the SA team during their field visits. This EA was prepared in close association with the feasibility study teams and should be considered as an integral part of the feasibility study. A section must be added in the feasibility report to cover all environmental issues discussed in this report and the environmental management plan costs should also be included in the project budget.

In a bid to off-set or mitigate the potential impact to the environment at the design stage, the EA team has already provided the PMO in Guangdong with the draft working guidelines to satisfy the needs for environmental protection, and discussed with the feasibility team as how to ensure coordination between environmental protection and economic development. As was mentioned earlier, the EA team has conducted extensive discussions with the social assessment (SA) team and has held in-depth discussions with the said team as to define the questionnaire related to environmental management, and submitted the questionnaire to the SA team. The EA team has used the main findings of the SA team in the EA report. The project could

1 Source: Leopold, L.B., Clarke, F.E., Manshaw, B.B. and Balsley, J.R. (1971), A Procedure for Evaluating Environmental Impacts, U.S. Geological Survey Circular No. 645, Government Printing Office, Washington, D.C.

6 impact farm sizes, waste management methods, fertilizer application rates and sources on farmlands, and water use methods that are in use within the project areas. The EA team discussed such issues in detail with the study teams and their comments were reviewed in detail. The possible environmental issues were analyzed and necessary mitigation measures were considered and costed in the EMP. In summary, the EA team has prepared the EA report, in close collaboration with other technical teams involved in the preparation of the feasibility study reports for the LWMEAP Project. 1.6 EA Team The EA team is composed of 6 experts for environmental impact assessment. The team members are primarily pertinent researchers from the institute (department) of Environment Science in Sun Yat-sen University. The posts of each EA team member, specialties, and tasks in this EA and the man-months used by each member are listed in Annex A.

The institute (department) of Environment Science in Sun Yat-sen University, founded in 1979, is one of the earliest departments of environmental science and research institutes in comprehensive universities in China. Professor Tang Yong- luan, the first superintendent, is a well known environmental scientist in China, who had made outstanding contributions to the naissance and development of Environmental Science in the country. During the last 20 years, the ability of research and teaching in this institute has become stronger. Presently, the university is providng doctoral, masters and bachelor degrees in a number of disciplines.

The institute is currently staffed with approximately 54 teachers and scholars, among which some 13 researchers/professors, 21 associate researchers/associate professors and 20 engineers/lecturers. The Institute has developed research fields with special focus on long-term research, including the theory, methodology and technique for EIA and Environmental Planning; simulation of transference and conversion of contaminants in waters; simulation of eutrophication and ecological dynamic process in estuary and onshore areas; environmental management and environmental information system; diffuse discipline of atmospheric contaminants; ecological environmental protection in marshy areas; technique of wastewater treatment in mangrove and man-made marshy areas; functional mechanism, effects and converting discipline of waste on organism, etc.

The Institute is highly active in domestic and international academic exchanges and collaborations. It has developed long-term and stable ties with universities and institutes from the United States, Canada, Britain, Hong Kong, Switzerland and other regions. These activities contribute substantially to enforce the academic advancement and facilitate the students’ development. The institute (department) of Environment Science in Sun Yat-sen University has the first-rank EIA certificate in the country.

Approximately 180 EIA projects have undertaken by the Institute. These EIAs cover many projects with significant environmental impacts, such as EIA of Petrochemicals project of Shell in Nanhai, EIA of storage water power station in Guangzhou, etc. In 2000, the State Environmental Protection Administration of China (SEPA) awarded one title—“the advanced institution of construction projects’ EIA in the country” to the organization for its prominent contribution in this field.

7 The institute (department) of Environment Science in Sun Yat-sen University has carried out a series of similar regional environmental planning projects and environmental impact assessments for development projects of large scale lately . These projects are as follows: z Environmental planning of Guangdong Zhaoqing City (April 2004) z Environmental impact assessment and planning of Guangdong Xiqiao Industrial Park (October 2003; as the project director) z Planning and assessment of industrial zones within Panyu District, Guangzhou (governmental project of Panyu District, Guangzhou; December 2003; as a major participant) z Regional environmental planning and assessment of Guangdong Economic development zone (project of the management committee of Guangdong Economic development zone; as a major participant). 1.7 Assessment Scope and Periods Covered 1.7.1 Assessment Scope The study area covered in the EA study covers Jiutan district of Yuanzhou township in Boluo County. 1.7.2 Periods Covered The environmental assessment covers different phases of project implementation including: 1) Design Stage (1 year) 2) Implementation/Construction period (1 year) 3) Operation Period (4 Years) 1.8 Assessment Factors The proposed project is a Livestock Waste Management development project, comprising institutional improvement, policy enforcement, adaptive manure technology demonstration, capacity building and extension at the central and local levels, and manure market mechanism development. Therefore, the environmental impacts and their interactions are complex. The assessment factors are identified using an environmental interactive matrix (Table 1-1) mainly collection of secondary data consultation with the other study teams, the environmental sensitivities of the project areas, and lessons learned from other similar livestock development projects. The identified environmental factors include: 1) Social Environment: public health, socio-economy, employment, downstream water users, and if present within project areas, the minorities and disadvantaged people; 2) Ecological Environment: land use, flora, fauna, nature reserves, soil erosion and degradation, freshwater and seawater fisheries; 3) Physical (natural) Environment: - Water environment: water hydrology, water quality (Surface water including pH, CODMn, BOD5, nutrients such as TN and TP, heavy metals, coliform. - - Ground water including pH, CODMn, NH3-N, NO2 , NO3 ); - Ambient Air: Odor, NH3, H2S, total suspended particulates (TSP); - Soil erosion and degradation;

8 - Solid waste (feedlots, boar) 1.9 Assessment Focus and Categorization The special topic assessment category and basis for classification of environment set by China General Bureau of Environment Protection is presented in accordance with the Technical Guidelines for Environmental Impact Assessment (HJ/T2.1~2.3—93, HJ/T2.4~1995, HJ/T19~1997). The assessment focuses project impact on the ecological environment, water environment and social environment during implementation and operation phases. Furthermore, water quality, land use, soil erosion and degradation, solid and liquid manure are identified as the main factors of this EA based on potential environmental impacts. The water quality assessment focuses on the impact of farmyard manure application as fertilizer (solid and liquid) on surface and ground water and project impact on nutrient migration (TN, TP) to the Pearl River and finally the South China Sea., while land use assessment focuses on the changes in land use practices through potential increase of liquid and solid manure as nutrient source, reduction of inorganic fertilizer use and potential changes in agricultural practices. In special cases where large number of animals are confined in relatively small areas (intensive pig fattening, intensive poultry farms), while land use assessment focuses on the changes in land use practices through spatial analysis.

9 Table 1-1 Preliminary Identification Matrix for Main Environmental Impact Factors of LWMEP Environmental Parameters Physical Environment Ecological Environment Social Environment e e y y a a y s y s s s g d g d g g n t e n t e y y h h r r c d c y m a d y m t a n n e t s n o n t e s o u n t v i m v u i n m i i t t t i t t i l l t r l l r n o t r a Project Components n o t r i a o Project Components i e i o i a e l a a e a e l a a s l s d l i a d e i a s o r e a s o r s e a s s e n s n a e a e F t i F t a i r s a e s r s r p e e s n r p e s e n s m e r m l l r u l l o r u o r u u s n s t n d e i o t u a d e i o h o e u a h o e y d a i w y c d a i e w c e l q r H l s q e r H r r s e r r v t y o r d v t y o r d t r t r e i o n o e i o n o c i e c i e c n l c n r l l c d r l c d - h u n - i h e u n S e i e e S e e a b a b i d i l t l a d l l t t a l e l t a e N r a a p N r p a l c l l c w r i l w r i t r t r a r a r o a o i b a a i b a W u m W u m i o e i i o L u e o a i o L u o o a u r a u s t r a m s t m u t t u t c t c w w S S a a o A S h a a A S o h B C a B C D a E D E P a P a l o W l o W c b c b N N F S F S N W N W Conducive policy Development and enforcement of policies 0 1 0 1 0 1 0 0 0 0 0 1 0 1 0 1 1 1 Capacity-building, awareness-raising; policy regulation 0 1 0 1 0 1 0 0 0 0 0 1 0 1 0 1 1 1 enforcement Livestock Waste Management Area wide Planning with GIS techniques 0 1 0 1 0 1 0 0 0 0 0 1 0 1 0 1 1 1 Design survey and Investment preparation 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 Improved Waste Management at non point source 0 1 0 0 1 1 0 0 0 0 0 0 0 1 0 1 1 1 Improved Waste Management at point source 0 1 0 0 1 1 0 0 0 0 0 0 0 1 0 1 1 1 Manure technology demonstration Biogas digester 0 1 0 0 1 1 0 0 0 0 0 1 0 1 0 1 0 0 Composting 0 1 0 1 1 1 0 0 1 0 0 1 1 1 0 1 1 0 Lagoon 0 1 0 0 0 1 0 0 0 0 0 0 1 1 0 1 1 0

10 Local capacity-building and campaign, communication program at local level 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 Notes: 0= No Impact 1 = Slight positive impact 2 = Medium positive impact 3 = Significant positive impact -1= Slight negative impact -2=Medium negative impact –3=Significant negative impact * If native seed mix is applied, otherwise the effect is –2 + If there is no competition for feed between wild animals and livestock, the impact is zero.

11 Table 1-1 Preliminary Identification Matrix for Main Environmental Impact Factors of LWMEP Environmental Parameters Physical Environment Ecological Environment Social Environment e e y y a a y s y s s s g d g d g g n t e n t e y y h h r c r y c d m a d y m a t n n e s t n o n t e s o u n t v i m u n v i i m i t t t t i t i l l t r l l r n t o a r n t o r i a i o e i i o a e l a a e a e l a a s l s d l i a d e s i a o r e s a o r s e a s s e n s n a e a e F t i F a i t r s a e s r s r p e s e n

Project Components r p e s e Project Components n s e m r m l l r u l r l o u r o u u s n s t n e i o d t u a d e i o h o e u a h o e y d a i w y c d e a i w c e l q H r l s q H e r r r s e r r v t y o r d v t y o r d t r t r i e o n i e o o n o c i e c i e c n l c n l r c l d r c l d - h u n e u - n i h S e i e e S e e a b a b i l d i t a l d l l t t a l l e t a e N r a p a N r p a l c l l c w r i l w r i r t r t a r a r o a o i b a a i b a W u m W u m i o e i i o u L e o a i o L u o a o u r a u s t r a m s t m t u t u t c t c w w S S a a A S o h a a A S o h B C a B C D a E D E P a a P l o W l o W c b c b N N F S F S N W N W Decision support tools development and regional co-ordination Preparation of tools relevant in the three countries. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 Training and Capacity Building 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 Regional co-ordination, Information sharing 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 Project Management and Monitoring Project Management 0 0 0 0 -1 0 0 0 0 0 0 0 0 1 0 0 1 0 Training 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 Lab 0 -1 0 0 0 -1 0 0 0 0 0 0 0 0 0 0 1 0 Extension 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 Notes: 0= No Impact 1 = Slight positive impact 2 = Medium positive impact 3 = Significant positive impact -1= Slight negative impact -2=Medium negative impact –3=Significant negative impact

12 1.10 Assessment Criteria According to the environmental function zoning of the environmental protection administrative departments in the project counties, the following standards will be adopted for this assessment. The assessment standards include quality standards and discharge standards. For quality standards, those required for protection of the functions in the recipient environment zone in view of pollution inflow will be applied. As to discharge standards, if available, corresponding discharge standards for the sector will be applied. If standards are not available, pertinent discharge standards will be applied for each special pollutant. Based on the geographical distribution and environmental features in the project areas, the following standards will be applied. A. Surface Water Quality Standard (i) Class II of the Environmental Quality Standard for Surface Water (GHZB 1-1999) for drinking water source protection area; (ii) The Water Quality Standard for Cropland Irrigation (GB5084-92) for irrigation water; (iii) Class III of the Environmental Quality Standard for Surface Water (GB3838- 2002) will be adopted for the assessment of surface water quality of urban river section and urban downstream river section; (iv) Environmental Quality Standard for Ground Water (GB/T14848-93). B. Drinking Water Quality Standard (i) Sanitary standard for Drinking Water Quality (GB 5749-85) C. Ambient Air Quality Standard (i) Class II2 of the Standard for Ambient Air Quality (GB3095-1996) for the residential areas; (ii) Threshold values of NH3 and H2S in Hygienic Standards for the Design of Industrial Enterprises --- The maximum permitted toxicant concentration in air of residential area (TJ36-79). D. Soil Quality Standard (i) Class of Environmental Quality Standard for Soil (GB 15618-1995) E. Noise Quality Standard (i) Standard of environmental noise of urban area (GB3096-93) F. Discharge Standard (i) Discharge Standard of pollutants for livestock and poultry breeding (GB18596- 2001); (ii) Emission limits of air pollutants of Guangdong (DB44/27-2001) (iii) Emission limits of water pollutants of Guangdong (DB44/26-2001)

2 Air quality is divided into three classes in the Standard for Ambient Air Quality (BG3095-1996). Class is applicable to nature reserves, scenic spots and other regions needing special protection; Class is applicable to rural region and urban residential region; and Class is applicable to industrial region.

13 (iv) Standards of noise at boundary of industrial enterprisesGB12348-90 1.11 Assessment Focus and Categorization Since the project aims at reducing the impact of land-based pollution from livestock production on the international water of the South China Seas and does not include any major land clearing or construction activities, it is classified as a Category B project according to the World Bank Operational Policy (OP 4.01). The goals of this study are to ensure that the project will not have any significant negative impacts on the physical, ecological and/or social environment of Guangdong and to enhance the positive impacts of the proposed project and the environment. The study focuses on the potential impact of the project, especially on the surface water and soil resources, the health of human inhabitants, domesticated and wild animals in project areas, the biodiversity, and to ensure the sustainable growth within the project areas. 1.12 Assessment Procedure The procedure for this assessment is presented in Figure 1-1.

14 Assignment of EA Task

Field Studies

Identification of the Objectives of Environmental Assessment

Selection of Environmental Impact Factors

Social Environment Ecological Environment Physical Environment

Environmental Impact Analysis Alternative Analysis

Social Environment Ecological Environment Physical Environment

Environmental Impact Environmental Standard Assessment

Compilation of Mitigation Measures Compilation of EA Environmental Monitoring Report and Management Plan

Figure 1-1 Assessment Procedures for the EA of LWMEAP

15 2 Policy, Legislation & Administration Framework As requested in the Notice on Strengthening the EA work for Construction Project with Loans from International Financial Institutions (Document NO.324), LWMEAP has to implement the Chinese laws, regulations & standards on environmental protection (EP) and EA regulations and requirements. In addition to the relevant Chinese regulations on EA, the project should also follow the technical requirements of the World Bank. The EA report is subjected to review and approval of the State Environmental Protection Agency (SEPA), Guangdong Environmental Protection Bureau (GDEPB), and the World Bank Safeguard Group. 2.1 Organizations & Administrative Framework At present, a system of uniform environmental supervision and management is in place in China that is practiced by SEPA and local environmental protection bureaus (EPB) under the direction of the State Council. In addition to SEPA, each concerned ministry and commission has a separate environmental protection department that is responsible for sector environmental projects within their areas of interest. They are also ultimately under the supervision of SEPA. The organizational structure of environmental administrative is presented in Fig. 2-1. 2.2 National Policy & Strategy for Environmental Protection. The environmental protection is considered as one of the major national policies in China. The long-term strategy is to develop projects that are both economically and environmentally sound. China has established an integrated legislative system for environmental protection. The Chinese legislation and regulations that LWMEAP should follow include: 1) “The PRC Constitution ”, mainly, Article 26, Section 2 of Article 9 and Section 5 of Article 10 that spells out the provisions for the environmental protection, pollution control, rational utilization of natural resources, protection of rare, endangered, and precious animals and plants, and rational land use. These activities provide the basis and the guideline for legislation on EP in China; 2) “The EP Law of PRC” (December, 1989); 3) “The Administrative Rules for the Environmental Protection of Construction Projects (The State Council Decree No. 253, November 18, 1998); and 4) “The Circular on Improved Management of EIA for International Financial Institution-Financed Projects” (No. 324). According to the requirements of Guangdong EPB, LWMCP should follow the following rules and regulations: 1) Regulations of Guangdong Province on Environmental Protection (September, 1997); 2) Regulations of Pearl River Delta of Guangdong Province on Water Quality Protection (January, 1999); 3) Administrative Regulations of Environment Protection for Development Projects in Guangdong (September, 1997);

16 4) Guangdong Provincial Implementation Measures of Law of the PRC on Prevention and Control of Pollution From Environmental Noise (December,1997); and 5) Interim Plan for Regionalizing Surface Water Function in Guangdong Province (November, 1999). 2.3 WB Requirements According to the WB requirements, the EIA report for LWMEAP should satisfy the following Bank policies: 1) Operational Policy 4. 01 Environmental Assessment 2) Operational Policy 4. 10 Indigenous People 3) WB Procedures for Information Disclosure EA team has reviewed and understood the above policies and would follow the technical requirements of the WB as outlined in the WB EA Source Book.

The State Council

Concerned SEPA Ministries/Commissions

Management Organizations of Main River Basins EP departments of Ministry/Commission Provincial/Regional EPB

EP Organization of Main River Basins Municipal EPB EP Organization of Provincial Lined Departments EP Organs County EPB of Big & Medium EP Organs of Industrial Sector of Enterprises Municipal/City Governments

Environmental Staff in EP Office of Industrial Sectors of Township/community County Government Sector

EP Office of Small Enterprise/Township Enterprise

Figure 2-1 Organizational Structure of Environmental Administrative Framework

17 3 Project Description The proposed project is located in Guangdong Province in Southern China surrounded by South China Sea (Fig 3-1). Government of Peoples Republic of China (PRC) has prepared for the proposed GEF project for support to promote Livestock Waste Management in Guangdong Province of PRC in order to reduce the negative local and global environmental impacts of rapidly increasing livestock production in the watersheds in the coastal areas of Guangdong. The Project has been designed in order to lead to reduction of land-based pollution from livestock production of the international water of the South China Seas. The Livestock Waste Management Project in China, covering Boluo region Guangdong province that hereafter is called Project Site are the selected site for the demonstration of the outcome of the Project. The total project investment in the three countries (China, Thailand and Vietnam) is approximately 31.7 millions USD, including GEF contribution of about 7 millions USD, LEAD contribution of about 0.5 millions USD, governments contribution of about 6 millions USD and private sector investment of about 18.2 millions USD. The project covers Yuanzhou Township of Boluo County in Guangdong Province.

Figure 3-1 Map of Guangdong and Project Counties

Boluo County

18 3.1 Project Goals The main goals of LWMEAP are: (i) To support sustainable development of livestock industry by reducing water and soil pollution within the project areas through establishment of practical and cost-effective manure management strategies and enforcement of policies and regulations; (ii) To reduce migration of pollutant, mainly N and P, to the South China Sea and reduce nutrient loading in agricultural soils, using organic fertilizers; (iii) To improve the health standards in the project areas, and to promote better social and economic development of project beneficiaries through introduction of adaptive and improved livestock waste management; and (iv) To develop decision support tools for policy makers and promote the exchange of experiences and lessons learned amongst the three participating countries directly involved in the Project as well as those bordering the South China Sea. The project is expected to lead to the development and implementation of policies for both livestock production and waste management with strengthened and better- enforced regulations, more effective institutions and financial incentives. The outcome of the second component would be demonstrations in micro-watersheds with improved livestock waste management including the establishment of improved nutrient-balances in surrounding agricultural land. The third component would develop common decision support tools for policy makers and promote the exchange of experiences and lessons learned amongst the three participating countries directly involved in the Project as well as those contributing to the N and P pollution of the South China Sea. The last component would result in efficient project management and effective monitoring of the political/institutional and environmental changes brought about by the Project. 3.2 Project Objectives The objective of the project is to reduce the negative local and global environmental impacts of rapidly increasing livestock production in selected watersheds in the coastal areas of China. The proposed project and its replication would lead to an improvement of land-based pollution from livestock production of the international waters of the South China Sea. Other global benefits would occur in the areas of biodiversity, land degradation, and climate change. In particular, the proposed project would lead to an environmentally sound geographic distribution of livestock production and thereby to the following global and regional environmental benefits: • A consequent reduction of livestock production waste load (animal waste currently contributes more than half of the total organic waste loads) that is currently polluting international waters (South China Sea, Gulf of Thailand); • More effective conservation of freshwater and coastal marine aquatic biodiversity as a result of reduced waste water discharges into riverine and other natural wetland habitats.; • Reduction of public health hazards and a more equitable distribution of benefits generated from the rapidly growing livestock industry;

19 • A reduction of land degradation from excessive nutrient loading in the agricultural fields surrounding intensive livestock production units; and • Reduction of greenhouse gas emissions (methane, nitrous oxides) and gases of local importance (ammonia) released from livestock waste. Conducive Policy Framework Component is proposed to have a sub-component for the development of policies and decision-support tools that would work on the identification and ex-ante assessment of policy options (including the spatial planning of livestock production), the preparation of technical standards and the design of policy implementation programmes. A second sub-component would work on capacity-building, awareness-raising, and enforcement of policies and regulations through training of central and local government officials as well as farmers, and the development of national communication programs. The component would be implemented under the close cooperation between the environmental and the agricultural agencies in the countries; and would include regional activities that will ensure the benefits from cross-country experiences and other synergy-effects. 3.3.2 Demonstration of Livestock Waste Management Component Demonstration of Livestock Waste Management Component would be implemented in one or two micro-watersheds in each country and focus on demonstrating how practical and cost-effective manure management technologies could improve freshwater, seawater, and soil quality. Three livestock waste management technology options will be demonstrated: (a) removal by treatment, (b) removal by crop/fish uptake and/or (c) removal by export to other regions (e.g. as compost or other manure products). This component would rely heavily on the guidance of the agricultural agencies and a partnership with the private sector. Sub-components would include area-wide planning with GIS techniques, surveys and registration procedures, and the actual physical demonstration of improved waste management both, for a large number of small producers (‘multiple-point source pollution’) and for selected large farms (‘single point source pollutions’). A second sub-component would involve capacity building of local officials, extension workers and farmers in manure and nutrient management, animal health, and the impacts of water pollution on public health. 3.3.3 Development of Decision Support Tools and Regional Coordination Component Development of Decision Support Tools and Regional Coordination Component would have two sub-components: first, the development of common decision support tools (e.g. decision support tool for the selection of manure management strategies; computer-based interface for the spatial planning of livestock development; nutrient fluxes modelling). This would involve adaptation of common tools to local contexts and translation into national languages, as well as the preparation of training modules. The second sub-component would focus on facilitating regional co-ordination amongst the three participating countries and the dissemination of project results, livestock waste management guidelines, and decision making tools to other countries impacting the South China Sea. This component would be implemented under the close guidance of the FAO with strong engagement from national governments to ensure regional activities meet their needs.

20 By definition, an integrated project demands strong support of technical extension and training. The project, in order to achieve its objectives is dependent on a satisfactory extension strategy and implementation of it. Technical assistance (TA) needs have been identified for a number of activities as described in the above component. 3.3.4 Project Management and Monitoring Component Project Management Sub-component with work done in the project management units and the training and equipment needed for efficient project management. A second sub-component includes the monitoring of the project, including implementation progress monitoring, monitoring of surface and groundwater pollution as well as other environmental indicators (under the leadership of the environmental agencies), monitoring of nutrient-balance in agricultural soils that are using manure as supplementary fertilizer, rate of compliance with environmental policies and regulations, and the monitoring and evaluation of the specific demonstration areas. 3.4 Indicators of Project Success The project success will be measures based on the following output and outcome indicators: (i) Number of livestock technicians trained in participatory approaches and sustainable livestock management; (ii) Number of community and/or farm based manure management plans that are prepared and implemented; (iii) Number of replication of demonstrated sustainable manure management approaches outside the demonstration areas; (iv) Spatial Distribution of Livestock; Share of Farms with Effective Manure Management Plans; (v) Number of farms that have adopted an improved system; (vi) Number of Staffed and fully-funded project management units established (regional, central, local);

(vii) Levels of BOD5, CODcr, Total Phosphorus (TP), Total Kjeldahl Nitrogen + — (TKN), Total Solids (TS), Suspended Solids (SS), NH3 -N, NO3 N, Total coliform, E.coli, of surface and groundwater and major polluting nutrients in agricultural soils used for manure application (TKN, TP, and available P measured by the Bray manure) in Selected Watersheds within project area of influence; (viii) Number of complaints received by the authorities in project area with regard to livestock related activities (odor, water contamination, etc.); (ix) Status of animal and human health using hospital statistics on water-borne diseases; (x) The overall social status and average income of participating farmers (project beneficiaries); (xi) Rate of establishment of supporting infrastructure within project areas.

21 3.5 Project Area The proposed LWMEAP project covers Boluo in Guangdong. Hydrographically, the project county is within the river catchment of Dongjiang River system. Table 3-1 presents the project county’s major livestock production systems.

Table 3-1 Project County Distribution and Production System River Project Counties Main Livestock Production System Basin Dongjiang Yuanzhou township of Boluo Mainly intensive hog pen and fish River pond agricultural production system

3.6 Project Implementation Schedule 3.7 Project Investment The total project investment is estimated to be about US$ 21,449 million in the three project countries. The costs based on the proposed scales of the four main components of the project are: about US$ 10,890 million including implementation by the private sector adoptions during project or about 50.8% for the Implementation of Cost-effective Livestock Waste Management (demonstration)component, about US$ 5,139 million or 24.0% of total investments for the Policies component some US$ 2,000 million or 9.3 % for the Regional component, about US$ 3,420 million or 15.9% of total investments for the Monitoring of Policies and Environmental and Human Health Impact component.

22 4 Description of Existing Environment Guangdong lies in the extreme southeast corner of PRC mainland. Guangdong is bordering South China Sea to the South, Fujian Province to the east, Guangxi Province to the west, and Jiangxi and Hunan Provinces to the North. This broad region has complex physical characteristics with a wide variation of climatic, topographic and physiographic characteristics. Tropic of cancer passes through the province. The following sections describe the major physical, ecological and socio-cultural conditions in the project areas. The EA study area in Guangdong covers Boluo County. Description of various features of the physical (natural), ecological and socio-economical environments are presented in the following sections. 4.1 Description of Existing Environment of Guangdong 4.1.1 Physical Environment of Guangdong 4.1.1.1 Topography Guangdong lies between 20o 09’ and 25o 31’ N latitude, and 109o45’ and 117o 20’ E longitude. The province total land area is 179756.5 km2, about 1.86% of total country area. Guangdong has zigzag and longest coastline of all country that is 3368.1 kilometer span long. Ocean area is about 350,000 sq. km of province, two times of land area. Distance is 660 km from south to north, 800 km from east to west in Guangdong. Guangdong hypsography is general high in north and low in south, landform complex, m Mountainous, hills, mesa, valley, basin are interleaving, besides of pearl river deltaHanjiang river deltalower reaches of Jianjiang river are plain in Guangdong, and that form multi-nature sight. Guangdong mountain chain tend towards mostly northeast- southwestern, Mountainousover 500 metercovers over 31.68% of the province, hills80-500 meter 28.54%, mesa 16.12%, and plain 23.66% 3.

North continent category middle mountainous area, northeast of continent is major mountainous region, southeast is hilliness, southeast coastline has more flat plain including Hanjiang delta plain that is bigger one than others. Pearl River delta plain lies in middle of southern continent and receives water from all three rivers: Dong rive, Xi river, and Bei river. Northern Pearl river delta altitude is quite high, distribute 20-55 meter mesa, middle and south of the Pearl River delta altitude is low, distribute paddy field and fish pound. West of Pearl river delta is mountain and mesa of western Guangdong. Lei Zhou by land in the southwest end of continent category low and flat mesa, altitude is hereinafter 80 meter. 4.1.1.2 Soil4 Guangdong stride South-Asia subtropics and tropic zone, has many types of parent material, form zonal soil to non-zonal soil, as well as anthropogenic paddy soils intensely. From South to North, laterite changes to crimson soil, and crimson soil changes to red soil, yellow soil develops among cold and wet higher mountain and intermontane basin, in addition develop non-zonality soil including Aeolian sandy soil and coastal solonchak etc yet.

3 Data source: Guangdong Soil 1993, Compiled by Guangdong soil General Investigation Office 4 Data source: Guangdong Soil 1993, Compiled by Guangdong soil General Investigation Office

23 4.1.1.3 Climate Located on the Tropic of Cancer and between the latitudes 20° 09' and 25°31' north and the longitudes of 109°45 ' and 117°20 ' east, Guangdong enjoys a most favorable geographic location. Besides north mountainous area has Mid-Asia tropical monsoon climate, most areas of Guangdong have mainly warm and humid South-Asia tropical and tropical monsoon climate boasts of the richest province in China in terms of sunshine, heat and water resources. With mild winters as warm as May springtime and long hot and humid summers like a rice steamer. This typical monsoon weather features a rainy season from April to September and frequent typhoons from May to November. Its annual average temperature varies from 19°C in the north to over 23°C in Leizhou Peninsula in the south. In January, its average temperature varies from 9°C in the north to 16°C in the south, while in July, from 28°C to 29°C, with an annual evaporation amount of 1,000mm in the north and 1,200mm in the south respectively. Influenced by the monsoons from the SE, it has plentiful rainfall of 1,500mm-2, 000mm annually with 40 percent falling during the summer. The annual sunshine is about I, 750 hours in Northern Guangdong, 1,800- 2,000 hours in the middle, and 2,000-2,200 hours along the coast. With plenty of rainfall and lots of sunshine, life is thriving here, with a large diversity of fruits, vegetables, and many other plants. 4.1.1.4 Hydrology

Surface Water: Major rivers in Guangdong province include the Pearl River, Xijiang River, Beijiang River, Dongjiang River, Hanjiang River , Moyangjiang River and Jianjiang River, among others. The Pearl River valley is major water system of Guangdong, includes the broad drainage area of Xijiang, Beijiang, Dongjiang and Pearl River Delta, area up to 111, 000 square kilometers, account for 62% of all provincial area. The Xijiang, the trunk of the Zhujiang (Pearl River), has its headwaters in the Nanpan River in the Wumeng Mountain Area, Yunnan, and flows past Guizhou and Guangxi, enters into Guangdong from Fengkai county area, runs through Zhaoqing, converges with Beijiang River in Sixianjiao area of Sanshui county, for 2,197 kilometers before emptying into the South China Sea at Modaomen, Guangdong. Practically all the rivers of the Beijiang and Dongjiang systems are in Guangdong Province. The Beijiang, starting in the southern part of Huanan and Jiangxi, upper reaches is called Zhenshui River, Beijiang joins with Wujiang River in Shaoguan city. Dongjiang originates from Anyuan county, Jiangxi Province, enters Guangdong in Longchuan county, flows past Heyuan, Huizhou, Dongguan cities, out to sea from Humen, Guangdong. Hanjiang River valley is second water system of Guangdong, drainage area 18000 square kilometers. In addition, Rongjiang River in East of Guangdong, Moyangjiang River, Jianjiang river and Jiuzhoujiang River in West of Guangdong. Zhujiang Delta, Hanjiang Delta and other rivers valley are important base of agricultural production. The length of the main trunk of Dongjiang is 520 kilometers, drainage area of 27040 square kilometers, Major branches include Xinfengjiang, Qiuxiangjiang, Xizhijiang, Zengjiang Rivers, out to sea from Humen, Guangdong. According to the information of Boluo hydrology station, Dongjiang maximum annal runoff 416 hundred million stere in 1983, minimum annal runoff 61.4 hundred million stere in 1963, average annal runoff 238 hundred million stere. Dongjiang discharge(flow) change greatly, upper reaches discharge many years average 724 stere per second, account about 7.6% of Zhujiang discharge 9542 stere per second. The maximum discharge 12800 stere per second of

24 Boluo observation site (1959), minimum discharge 23.1 stere per second(1960), discrepancy 554 times both. Dongjiang lower reaches and bayou area contain sand 0.136 kilogram per stere, total year transport sand quantity 314 ton. Dongguan and Shilong area of Zhujiang Delta is deposits by Dongjiang. Groundwater5: Guangdong shallow layer groundwater gross quatity 534 hundred million stere, account for 25.3% of annual runoff, general replenishment modulus 25.1 ten thousand stere/year·km2, rainfall seep modulus 14%. Dongjiang river system area groundwater resource gross quantity 62.7 hundred million stere, account for 25% of annual runoff, general replenishment modulus 25.4 ten thousand stere/year·km2. Now Guangdong groundwater exploitation meets 2.5 hundred million stere per year, only account for 3% approved exploitation mete. Main river system area groundwater resource data are presented in table 4-1. Table 4-1 Main River System Area Groundwater Resource Data River Name Area, Annual groundwater General Rg/R rainfall (km2) Runoff resource replenishment () seep (million stere) (million stere) modulus (thousand modulus stere /year- km2) Xijiang river area 15.085 12300 3630 241 29.5 0.16 Beijiang river 40.894 45700 10900 268 23.9 0.15 area Dongjiang river 24.667 25100 6270 254 25 0.14 area Pearl river delta 31.443 31300 7330 233 23.6 0.13 area Hanjiang river 20.048 17000 3910 195 23 0.12 area coastal rivers area 13.653 17200 11300 291 23.1 0.14 of east Guangdong coastal rivers area 31.982 31700 6070 352 35.2 0.19 of west Guangdong

Total of whole 212.005 211300 53400 251 25.3 0.14 Province

4.1.1.5 Surface Water Quality6 Guangdong main rivers water environment quality mainly fall in classes II to III. In general, water quality is within acceptable limits. About 57.9 river sections among provincial control surface water quality monitoring sections reach the state level II while 59.6 river section water quality is perfectly , reach or excel the state class III level. 22.8% of river sections water quality belong to the state V level or inferior class V level, important pollute index is NH3-N, feces coliform, CODCr, oil and TP, NH3- N and feces coliform exceed state level is common.

5 Data Sources: Country Resources in Guangdong, 1986,Compiled by Guangdong land resources office. 6 Data sources: Environmental Quality Report in Guangdong Province, 2003. For classification of level refer to the definitions presented in Chapter 1.

25 Seven provincal control segments of Dongjiang water systems, including Heyuan segment (II function area)water quality reach 1st state level, Huizhou section (II function area), water quality reach 2nd state level, Dongguan segment (II function area), water quality reach 3rd state level, Xizhijiang river segment (II function area), water quality reach 4th state level, Longgang river segment (II function area), water quality category inferior V state level; Pingshan river segment (III function area), water quality category inferior V state level, and Shahe segment (II function area), water quality reach 3rd state level.

4.1.1.6 Groundwater Quality No institution have make general investigation of groundwater quality in Guangdong, because government and individual both think Guangdong is full of surface water, surface water is enough for agricultural, industry and residential. So up to now no data of groundwater quality in Guangdong can be abtained. 4.1.1.7 Atmospheric Environment7 Urban atmospheric environment: In the year 2003 the annual average value of urban sulfur dioxide in the whole province is 0.025 mg/ m3, reach the state 2nd level, Shaoguan and Foshan cities exceed the state 2nd level, Shenzhen and Zhuhai etc.ten cities reach the state 1 st level. The annual average value of nitrogen dioxide is 0.031 mg/ m3, reach the state1st level. 21 cities all over the province whose average annual value of nitrogen dioxide reached the state 2nd level, Shaoguan and Zhuhai etc. 15 cities reach the state1st level. The annual average value of total suspended particulate matter of compared cities is 0.124 mg/ m3, reach the state2nd level. The annual average value of PM10 of compared cities is 0.075 mg/ m3 , reach the state2nd level. As for the project couny are concerned, the sulfur dioxide in Foshan city exceeded the state 2nd level. The atmospheric environment quality meets the 2nd level instituted by the state in the project area.

4.1.2 Ecological Environment of Guangdong 4.1.2.1 Flora In terms of plants, 7055 species, 1645 genus and 280 families of plants are identified in Guangdong, which accounts for 26%51.6% and 76.9% of total number of state respectively. 103 kinds are rare and severe danger plant, 49 genus are special genus of China. Guangdong is the one of the richest and most important provinces in China in terms of biodiversity protection. According to the ecosystems classification of China, there are four plant community ecosystems in Guangdong;

7 Data sources: Environmental Quality Report in Guangdong Province, 2003. For classification of level refer to the definitions presented in Chapter 1.

26 4.1.2.2 Fauna Guangdong lies between 20o 09’ and 25o 31’ N latitude, and 109o45’ and 117o 20’ E longitude, locates on the Tropic of Cancer, enjoys a most favorable geographic location. Guangdong has a mainly warm and humid subtropical climate with mild winters as warm as May springtime. With plenty of rainfall and lots of sunshine, life is thriving here, with a large diversity of fruits, vegetables, and many other plants, is the one of the richest provinces in China in terms of biodiversity. There are 720 kinds of vertebrate, 35 kinds are first class protection, 151 kinds are second class stress protection, which account for 23% and 40% of all state stress protection wild animal respectively. 4.1.2.3 Nature reserves In order to protect the flora and fauna biodiversity in the province, Guangdong has successively instituted a number of measure, byelaws and ordinances, such as “Byelaws of management of wild animal protection in Guangdong”,“ List of wild animal important protection of Guangdong” was drafted by Forest Bureau that has been confirmed and publicized by provincial government, and “Proposal of Guangdong accelerating nature reserve building”. With gradually perfection of Management ordinance for Wild animal protection, which makes management work of provincial level wild animal protection can according to special laws and ordinances. 177 nature reserves of various significance levels have been established in Guangdong province until 2002, covering an area of 989,830 ha (including sea area), land area of 823,850 ha, which accounts for 4.6% of the provincial total area. Among these preservation zones, eight are at the national level, 36 are at provincial level, and 133 are at the county (city) level. 38800 small section of nature reserves have been constructed by countrygovernmentarmy and enterprise etc. in Guangdong, that covering an area of 420,000 ha, such as “little bird heaven ”small section of nature reserves, lies in Tianma river alluvium of Xinhui city, only covering an area of 1ha, aim at protection of Aves and. In addition, So far there are 89 forest parks in Guangdong province, totaling an area of 326,000 ha, of which 14 are at state level, and 31 at provincial level, and 44 at county(city) level. 4.1.2.4 Soil Erosion and Water and Soil Conservation Base on statistic data in 1983, Guangdong province water and soil erosion area 1.1265 M.km2, increases 52.43% compare with initial stages of 1950’. Thereintohead water of Hanjiang account for 25.8%, Xijiang valley account for 17.8%, Dongjiang upriver account for 10.5%, Beijiang upstream account for 10.9%, coastal rivers area of east Guangdong is about 18.5%, coastal rivers area of west Guangdong is about 11.2%, Pearl river delta account for 5.1%. Meizhou area lies in head water of Hanjiang is most serious for water and soil erosion, water and soil area is about 2556.04 km2, include surface erosion 1700.73 km2, account for 66.53% of total water and soil area, gulley erosion 609.21 km2, account for 23.83% of total water and soil area, collapse mound 246.1 km2, account for 9.62.

27 4.1.3 Socio-cultural Environment of Guangdong 4.1.3.1 Population and nationality The year 2003 statistical data indicate that the total population of Guangdong province is 86,42,0,000, permanent residents is 78,585,800 of which, 50,216,330 (63.82%) live in rural areas, 28,369,470 (36.18%) live in urban areas. Population density is about 430 persons per square kilometer and representing 6.69% of the total population in China. Guangzhou is the largest city in South China, ranking 5th in population density of all the cities in China, after only Chongqing, Beijing, Shanghai and Tianjin. Han people form the majority of the population in Guangdong province. The main minority groups in Guangdong are Yao, Zhuang, Hui, Manchu and She. Guangdong is a multicultural province with a diverse society. A total of 53 out of the country’s 56 nationalities are represented in Guangdong. Ethnic minorities account for 1.23 million inhabitants. Han Chinese majority number 85.19 million and represent 99% of the total population. The province’s urbanization tops the nation, closing in on the level of the intermediate developed nations in the world. Year 2000 statistics indicates that 24.17% (about 20.47 million) of population are children (0-14 years old), 69.78% (about 60.30 million) are young and middle-aged people (15-64) and 6.05% (about 5.23 million) are the elder at the age of 65 and above. The age median is 33.3, with male 33.25 and female 33.35. The provincial age structure is of an adult type at the latter stage, characterized by an extending average life span, smaller proportion of children and young people, and a greater proportion of elders. This aging society is also partly due to the strengthening of China’s birth control policy and the remarkable improvement in people’s health.

4.1.3.2 Cultural Background In modern Chinese history, there emerged several different schools of the Chinese culture each having its own ups and downs in the past. Such as the Zhongyuan Schoolthe Mandarin School of the ruling class of the Manchu minority of the Qing Dynastythe Huxiang School in Hunan and Hubei provinces strongly influenced China in the revolutionary 20th century with its outstanding national scholars, thinkers, military talents, and revolutionary heroesthe Jiangsu Zhejiang School centered in the Shanghai metropolis has been well known for its Western cultural influence and its openness to the outside worldBashu Culture of Sichuan Province is also very noteworthy for the Sichuan dialect and regional cultural traditionQilu school in Shandong Province is still of that ancient cultural tradition. Confucius is still regarded as an important sageFinally, today’s Lingnan School of South China seems to reach its prime, accompanied with the rapid social changes in the southern coastal areas in China and with China’s focus shifting from politically-centered economy to market-centered economy. It cannot be a mere historic coincidence that Guangdong has been twice chosen as one of the five pilot cities opened first to the outside world with a 100-year-long gap in between. Guangdong has its long tradition of openness and flexibility, its favorable geographic location, its ambitions for prosperity, and a deep-rooted love for the richness life.

28 Here you probably want to know more about this robust Lingnan culture and its remarkable evolution. As the capital of Guangdong Province, Guangzhou’s history began with a beautiful legend of five fairy rams, which probably reflects the locals’ strong desire for a prosperous and peaceful life, rather than the wars between evil and good as in the other places in China. And Zhenhailou (Five-Story) Tower appeasing the sea displays the unique personality and temperament of the Yue people, who took the snake as their totem. A great number of ancient sculptures depicting the friendship between man and snake are found among the ancient objects unearthed from the tomb of the Nanyue King Zhao Tuo. But strangely enough, Cantonese would still like to have snake meat on the table today. Lingnan culture has set up a close tie with the Zhongyuan culture since the Qin Dynasty when Qin Shihuang, the first emperor, unified the whole land of China. In the following dynasties, a lot of national heroic figures, celebrities, and scholars contributed a great deal to the development of Lingnan culture. For example Zhao Tuo, King of the Nanyue Kingdom, left behind a brilliant legacy of the Qin &Han dynasties; Dharma with his followers crossed the sea and landed at Guangzhou’s Xilaichudi and built a thatched house by the Pearl. It is said that his house could be the origin of today’s Hualin Temple. Dharma, as the first Buddhist preacher in China, began his teaching in Guangzhou; (Lu) Huineng (638-713 AD) is the Master (the inherited Abbot) of the sixth generation of China’s Buddhism and one of the founders of Zen Buddhism. Huineng made adjustments to the faith so that it could be accepted by traditional Chinese ethics and its popularity could grow. Buddhist Master Huineng was born in Xinxing County in Zhaoqing City, and his school of Zen Buddhism has a deep-rooted influence in Japan, Southeast Asia, as well as Guangdong and Hong Kong. His wisdom and philosophy of life has permeated China’s spiritual world for over 1,300 Years; Han Yu, a great prose writer of the Tang Dynasty, once came to Guangzhou and Chaozhou when he was demoted to a position as a local official. Han Yu advocated education and managed to develop the local economy, and his deeds remained a strong cultural influence over Lingnan Region; Su Shi, an outstanding poet of the Song Dynasty, left his writings in the Liurong (Six-Banyan) Temple, which has been admired by generations through the ages; Today’s visitors still have a chance to visit Nanhai Polo Temple at Huangpu Port, evidence that Guangzhou is also one of the starting points of the ancient Marine Silk Road connecting China with the outside world about 1,000 years ago; Chen Xianzhang (1428-1500) of the Ming Dynasty absorbed Central China’s cultural essence and collected local cultural elements, social norms, regional tradition, lifestyles, and customs. Chen with his followers formed their own school of culture, later developed into the present Lingnan School of the traditional Chinese culture; Guangdong has many brilliant pages in the story of modern Chinese history. Hong Xiuquan (1814-1864) from Guanlubu Village led the Taiping Rebellion against the Qing Dynasty as well as foreign invaders. The heroic deeds against the British invaders at Sanyuanli (1841) in Guangzhou are still fresh in the minds of the Chinese people; Below the Yuewantai Terrace is located the headquarters where Sun Yat-sen plotted (1911) to overthrow the Chinese monarch; Huanghuagang is a historic reminder of the Xinhai (1911) Revolution and the Anti- Japanese War. Apart from what is mentioned above, international exchanges between the Lingnan Region and the Western world have had an important influence over South China. Dharma from India and businessmen from the Arabian Area during the Tang Dynasty,

29 a Marine Silk Road between South China and Persian Gulf Region, Christian civilization, Western science and technology all have left behind a rich legacy in South China. In the past century, Hong Kong and Macao have been two important places where West meets East in the world. In the 1980s, Guangdong was selected once again one of the five pilot cities to be first opened to the outside world. The Cantonese people seized this golden opportunity to invite overseas entrepreneurs and companies to do business, to invest here and to establish relationships with the government and local private businessmen. The people of Guangdong showed their eagerness to learn the best of what this world has to offer and join the international community without dwelling on concerns about what is capitalist or socialist. Their pragmatic and daring spirit was highly praised by Mr. Deng Xiaoping, architect of China’s "four modernizations." In the year 2000, Chinese President Jiang Zemin came to Guangdong, expressing his desire for Guangdong to realize its four modernizations ahead of schedule, and to lead the way in China’s present reform in ideology, governance, economic management and social structure. Guangdong is expected to lead the way in shaping "socialism with Chinese characteristics." Lingnan culture has been very much invigorated by the present economic development and will likely have a stronger influence upon the Chinese social development in future. Master Huineng of Zen Buddhism, the divine protection of Guanyin (Chinese Goddess of Mercy), General Guan Yunchang’s loyalty and honor, and Huang Tai Sen’s immortal Taoist spirit are traditionally admired and followed by those doing business in South China, especially in Guangdong, Hong Kong, Macao and Taiwan. Their sculptures, or statues are often placed and worshipped in shops. This custom implies that South China’s business tradition retains its own character and uniqueness that distinguishes it from other places in China and other parts of the world, even though China is entering into the WTO. This social phenomenon is a mixture of superstition as well as a cultural tradition. The social opening up and rapid economic development has enriched the Lingnan culture with new vigor. The cultural life in the cities and in the countryside is becoming richer. 4.1.3. 3 Public Health In Guangdong project areas there are no evident epidemic diseases. According to the records in every pig farm and data obtained from local government, the common pathogens in these swine production system are:Escherichia coli, Salmonella spp, Erysipelothrix rhuriopathia , Streptococci spp,, Pasteurella multocida, Listeria monocytogenes,Clostridium tetani and so on. Sometimes such pathoges as Actinobacillus pleuropneumoniae, Haemophilus parasuis, Bordetella bronchiseptica,Brucella suis, Actinobacillus suis, Lawsonia intracellulari s,can be found in the field. As well as viruses are concerned, PRRS virus, Hog cholera virus, TGEV, PED virus exist in these pig farm. The most important pathogens include Escherichia coli, Salmonella spp, Pasteurella multocida, Streptococci spp,these pathogens are harmful to both animals and human. It is necessary to take control measures from the beginning. That is to say we may control the dissemination of diseases in swine herds to prevent these pathogens flowing to environments ,especially through food chain to hazard people. 4.1.3. 4 Cultural Heritage

30 Lingnan culture is an important part of the traditional Chinese culture as a whole. Its music, opera, painting, architecture, gardening, cuisine, acrobatics, arts & handicrafts, Cantonese dialect and Chaozhou-Shantou dialect all possess a strong local character. Local culture mainly consists of Chaozhou & Shantou customs, Yao customs, Hakka customs (Hakka meaning guest Hart Chinese) and fishermen’s customs. Lingnan folk dwellings are also very eye-catching. Walking along old lanes in South China, looking at the old Xiguan dawu mansions in Guangzhou, zhutongwu houses and the sotto porticos (commercial arcades) along the streets, mixed with the buildings in Western style, it feels as if a person is strolling through history. Xiguan dawu mansions used to be the traditional dwellings of the local rich families. A dawu consists of three pairs of rooms and two corridors symmetrically, with the main hall in the middle, fine decorated and exquisitely furnished with strong Lingnan features. Qilou (sotto portico) buildings show fusion with western architectural styles of the 18th century and traditional Cantonese styles of construction. Functioning as both dwellings and shops, they are built for shelter from the wind, rain and sunshine, of the subtropical climate of the Lingnan Region. The Ancestral Temple of the Chen Family (also Guangdong Folk Arts Museum) not far from Xiguan Arcade represents the ultimate in traditional Cantonese architecture. The Hakka Circular Houses in Eastern Guangdong are also very impressive, with their ancient, castle-like aura. Xiguan was once a commercially dynamic area in Guangzhou that appealed to wealthy merchants, politicians, scholars and people from all walks of life. Xiguan was a mirror of the Guangzhou’s urban life and tradition. Today, Xiguan is still a robust place for commerce. 4.1.3. 5 Scenic Spots and Tourism The Delta is a beautiful place with many natural areas, cultural relics, historic sites, and amusement parks. First, there are green mountains, such as Mt. Baiyun in Guangzhou, Mt. Nankunshan in Longmen, Mt. Lianhuashan in Panyu District, Mt. Guifengshan in Xinhui, Mt. Xiqiaoshan in Nanhai City and Mt. Luofushan in Boluo. Mt. Luofushan is one of the four most well known mountains in Guangdong, Mt. Luofushan integrated Provincial Reserve was founded in 19859828 haProtect objects :south subtropical zone evergreen broadleaf tree and rare animal and plant. The reserve lies in the northeast of Boluo county and in the north of Yuanzhou township, its ridges and peaks lift and vigour majesty, Luofushan has been a famous scenic spot for refining red and making pharmacy of Taoism and Buddhism from Qin Han Dynasty. Landscape include: Bai Shuimen fall, Niang spring, Long birth well spring, Chongxu temple, virgin forest. There are 1168 kinds of vascular bundle plants were collected from the zone, 16 kinds of beasts and 6 kinds of Luofu Shan special plants. Other popular tourist attractions are: Star Lake in Zhaoqin, Seven Stars Crags and Dinghu Mountain. Paradise of Birds in Xinhui, Beaches on Shangchuan Island, Lingnan Water Country, four famous gardens of the Qing Dynasty, Humeri Cannon Terraces, Humen Fort and the Former Residence of Dr. Sun Yat-sen. Another historic site is Shamian, located on the north bank of the Pearl River’s White Goose Rangoon. Shamian is an oval-shaped islet, covering only a small area of 0.3 square kilometers. Thanks to a complex of aged buildings of classical architecture on the island, it has recently been designated as a key cultural relic under state protection. These buildings are regarded as a historic witness to the former semi-colonial time and as a patriotic educational base for youngsters.

31 In recent years, hundreds of new, modern attractions have sprung up in Guangdong. These include the World Scenic Spectacle, the Space Flight Spectacle, Ocean World, Xiangjiang Safari Park and Chime-Long Night Zoo in Guangzhou Municipality, Window of the World, Folk Cultural Villages and Splendid China Miniature Scenic Spots in Shenzhen, New Yuan Ming Yuan Palace, and the Lost World and Water World in Zhuhai City. In addition, there are many holiday getaways, amusement parks, golf courses, hot spring resorts, and ecological gardens and resorts. By 2002, 13 cities on the delta have won the distinction of "Excellent Tourism City": Guangzhou, Shenzhen, Zhuhai, Zhaoqing, Zhongshan, Foshan, Jiangmen, Shantou, Huizhou, Nanhai, Shaoguan, Qingyuan and Yangjiang. The income from tourism in the delta represented 85% of the province’s total tourism and 90% of the provincial foreign earnings from tourism. One of the delta’s advantages is that overseas visitors to Hong Kong and Macao can opt for an extension to visit to the Pearl River Delta with a 144-hour free visa. The free-visa policy grants foreign tourist groups easy access to the Pearl River Delta’s cities, including Guangzhou via Hong Kong and Macao, for a stay of up to 144 hours. Foreign visitors can enter cities through any of the 40 inspection stations in the Pearl River Delta area, and no entry marks will be stamped on their passports. 4.1.3. 6 Infrastructure In the 1990’s, Guangdong’s infrastructure gained rapid development due to the increased investment in infrastructure development in the province. Since then, a number of modern transportation network and an advanced telecommunication system has been constructed. Transportation As the southern gate of China, Guangdong is a hub of transportation--by air, by water, as well as by land. Railways are very convenient and play a crucial role in developing Guangdong Province and South China. Beijing-Guangzhou and Beijing-Kowloon are the main arteries of transportation, connecting North and South China. Guangzhou- Zhanjiang, Guangzhou-Meizhou-Shantou, Sanshui-Maoming and Guangzhou- Shenzhen are important local routes connecting the major cities within the province. The Guangdong-Hainan (Yue-Hai) Railway is newly completed, connecting Western Guangdong and Hainan even more closely. Highways radiate into all the parts of the province, already reaching every village. With 102,600 kilometers of highway (2000 statistics). In general, the local land transportation conditions are in good shape. With the 5.7-billion-yuan (US$686.75 million) and 149-km-long Western Coastal Expressway completed recently, Zhanjiang, Maoming, Yangjiang, and Zhuhai have been given greater transportation links. Guangdong now has an expressway network of 1,500 kilometers. It is estimated that in 2010 there will be 3,310 kilometers of expressway in use. Ports are numerous and used heavily in all the coastal cities in this province. There are 1,226 berths along the coast, which can handle 24,038 tons of cargo annually. There are 998 navigable rivers with 1,729 docks and berths in the river ports. Guangzhou, Huangpu, Shanwei, Zhanjiang and Shenzhen ports are important mainly in international trade, of which Guangzhou, Huangpu and Zhanjiang ports are three of the largest in China. They all have been playing important roles in both domestic and foreign trade for hundreds of years.

32 There are several airports in Guangdong: Guangzhou, Shenzhen, Zhuhai, Shantou, Zhanjiang, and Meizhou airports, of which Guangzhou Baiyun International Airport and Shenzhen Bao’an Airport offer international flights to overseas countries. Nowadays, the new Baiyun Airport in Huadu District makes it much easier to travel domestically by air. Guangzhou and Shenzhen have set up their urban metro systems to relieve the local traffic congestions. Guangzhou has an ambitious plan to turn itself into an international metropolis. Two urban inner ring expresses, Huanan Express, and an urban light rail system connecting most satellite cities nearby will make this huge city more comfortable and convenient to its citizens and visitors. Electricity Supply At present the total installed power generation capacity reached 35,380 megawatts and the annual power generated amounted to 167.13 billion KWh, one of the highest ranked provinces in China. The 2X900 megawatts Units of Daya Bay Nuclear Power Plant, the 4X300 megawatts Units of Guangzhou Pumped Storage Power Plant and 3,880 megawatts Units of Shajiao Power Plant in Humen Town of Dongguan City are all well known in China. Guangdong power grid is a main network structure with Guangzhou as its center and sends 220v and 50Hz electricity. Telecommunications Guangdong has established a trunk line transmission network dominated by optic fiber cable and digital microwave, offering domestic and international long distance services. The telecommunications and transmission have basically been equipped with program-controlled exchange and digitized transmission. All cities and counties have opened program-controlled telephones. The total capacity of the program-controlled exchanges was 20,003,200 lines; the mobile phone users reached 31,214,300, and Internet users accounted to 1,075,000. 4.1.3. 7 Land Tenure and Land Ownership Almost all the farm land in the project areas has been contracted out to farmer households on a 30-year lease basis. All arable lands are also contracted to farmer households on the same lease agreement basis. It is hoped that land use rights improvement will provide additional incentives and positive impact on initiation of cropland and soil protection activities. 4.1.3.8 Land Use and Farming Practices Guangdong is one of provinces with limited land and dense population. The land area of Guangdong is 179,800 square km, of which the area suitable for farm is 4.34million hectares, accounting for 24.14% and the area suitable for forest is 11million hectares, accounting for 61%. The farm land 1500.99 ten thousand hectares, account for 83.5% of the all land in Guangdong, farm land in actual use: arable land of 306.8 ten thousand hectares, account for 20.44% of the farm land, garden plot of 85.86 ten thousand hectares, 5.72% of the farm land, woodland of 1020.07 ten thousand hectares, 67.96% of the farm land, and grassland of 2.85 ten thousand hectares, 0.19% of the farm land, other farm land 85.41 ten thousand hectares, is about 5.69% farm land; The non-farm construct land 161.71 ten thousand hectares, account for 9% of Guangdong total land, actual use: residents, factories and mines land 129.95 ten thousand hectares, 80.36% of the non-farm construct land, transportation 10.66 ten thousand hectares, 6.59% of the non-farm construct land, water conservancy 21.1 ten thousand hectares, 13.05% of the non-farm construct land; Unutilized land 134.86 ten thousand hectares, account for 7.5% of the total land in Guangdong. Land Use Status in Guangdong Province presents in Table 4-2.

33 Table 4-2 Land Use Status in Guangdong Province , 2002 Unutilized Farm land The non-farm (constructed) land Land 1500.99 161.71 134.86 83.5% 9% 7.5% Garde Other Residents, Arable Wood Grass Water n farm factories and Roads land land land conservancy plots land mines land M. ha 306.8 85.86 1020.07 2.85 85.41 129.95 10.66 21.1 134.86

34 4.1.3. 9 Other Employment/Manufacturing Opportunities Light industry has always been significant in the province. Apart from handicrafts, light industry, especially food processing and the textiles manufacturing, account for a major portion of the province’s industry. Sugar refining is centered in Guangzhou, Dongguan, Shunde, Jiangmen and Shantou, while silk filature (the Reeling of silk from cocoons) and weaving are well developed in Guangzhou, Foshan and Shunde. Heavy industry includes metal processing, the manufacture of machinery, ship building and ship repairing, hydroelectric production and mining. To address the problems that occur during social and economic development and the transition of business from state to private ownership, governments at all levels are making great efforts to help boost employment and re-employment. Progress is being made in social security reform mainly covering pension and unemployment insurance. Construction of new infrastructure has made breathtaking strides. In the past two decades, the investment in basic infrastructure has been over RMB 200 billion yuan. 39,700 kilometers of highway, 1,048 kilometers of railway and 802 kilometers of expressway have been built. In 2000, SPC telephone for urban and rural inhabitants grew, while the number of mobile phone subscribers reached 57.94 for every 100 households. Computer distribution per household is 0.54% in 2000, the highest among the major cities in China. The installed capacity of electricity in 1998 reached about 30 million megawatts, 10.6 times as much as that of 1978. The outreach of electricity supply has expanded to all villages in the province. Guangdong is going to buy more electricity (about 10 million megawatts annually) from Southwest China to meet the needs of the increasing market. Guangdong’s GDP per capita reached 12,973 yuan in the year 2000. In the past 22 years from 1978 to 2000, the average rate of increase in GDP has been over 13.6%. It is a new world record of economic development to ever happen in history. Guangdong Province’s tourism industry is getting stronger, bringing in one-fourth of China’s tourism in 2000. Income from this sector reached 114.99 billion yuan and earned over 4,112 million US dollars in 2000. Guangdong’s GDP in 2001 reached 1,055.6 billion yuan, 9.7% higher than the previous year. Guangdong’s software industry has enjoyed a very high rate of growth in recent years. By the end of the year 2000, the total revenue from the province’s almost 2,000 IT enterprises exceeded 80 billion yuan, higher than that of Beijing and topping the whole country. Obviously, Guangdong has become a huge industrial productive base. Its modern merchandise consists of electric appliances of all sorts, including refrigerators, TV sets, washing machines, air-conditioners, dishwashers, and rice cookers. Industries are booming in Guangdong. 4.1.3.10 Socio-economic Development Plan Guangdong Provincial 10th Five-Year Plan (2001-05) aims at the realization of the Four Modernizations in the year 2005. Guangdong will be leading the way to the Four Modernizations in China as well as to globalization in the coming decades by laying a solid foundation for future development. Its strategic plan includes:

35 1. By the year 2010, the Four Modernizations shall be realized. The GDP shall reach 1,670 billion yuan at an annual increase rate of 12.9%. GDP per capita will reach 20,800 yuan. 2. Achieving major progress in both material life and cultural life. A relatively mature socialist mechanical market structure shall be established. The comprehensive economic strength shall be equal to the year’s level of the mid- ranked developed countries and regions in the world. At the same time, the provincial government shall endeavor to strengthen the values of socialism, making sure a higher social morality gradually take shape. Rejuvenating Guangdong through science, technology and education strategy. Science and technology should be on the cutting edge. Priorities shall be given to education. It shall also make efforts in environmental protection and to improve the peoples’ civil performance. 3. Sustainable development strategy. The economic development must take into consideration realities of population, national resources and environmental protection. 4. Creating four more advantages on structure, composition of industry, opening up science & technology. 5. The government shall adhere to the policy of expanding domestic demand as well as to open up. 6. The improvement of the legal system and law enforcement shall be given further attention to consolidate public order.

4.2 Description of Existing Environment of Boluo county 4.2.1 Physical Environment of Boluo 4.1.2.1 climate Comparing with other counties in south Guangdong, Boluo is a little bit drier one, the average annual rainfall is 1280 mm, with 1825 hours’ sunlight annually. Table 4-3 presents the “typical” climatic data for selected project county.

Table 4-3 The Climatic Characteristics of the Project County in Guangdong province Project Average Average Average Average Average Average Location Annual Temp., Temp., Annual Annual Annual (County) Temp., oC Jan, oC July, oC Precip. Evaporation relative (mm) mm humidity

Boluo 23.1 12.8 28.4 1814 1663 80

4.1.2.2 Surface Water and Surface Water Quality Jiutan area of Yuanzhou Township lies in Southwest Boluo, back on Luofu Mountain, separated with Dongjiang river between Dongguan in South, belong to Dongjiang

36 systems, runoff through Shahe River empty into Dongjiang River. It is similar to the province, most of the small rivers in the county flow from the north to the south, such as the Sha River, etc. Dongjiang River is the most important regional river in the county, which finally flows into the South China Sea. Shahe river is 1st tributary of Dongjiang, its waterhead in Dushan of Boluo, end in Shiwan of Boluo, the length of Shahe is 89 kilometers, drainage area of 375 square kilometers.Table 4-4 presents the general hydrological characteristics of the major river system within the project areas8. Table 4-4 The Characteristics of the rivers in Guangdong project county River River Name From – Total Average River Total Annual Syste & County to River Annual length Discharge m Length Runoff in county (Mm3) (km) (Mm3) (km) Dongji Dongjiang 520 238 ang Boluo hundred million stere. Shahe Dushan– 89 Boluo Shiwan of Boluo

River Water Quality This time we collect surface water environment quality datas of Dongjiang water systems 4 provincial control sections of Boluo in 2003 (Fig.4-1), including No.85, Shahe Bayou section, where Shahe river enter into Dongjiang river; No.83, Dongan section, lies in upper Dongjiang of Shahe Bayou; No.113, Shilong North River section, and No. 112, Shilong South River section, lie in backward position of Shahe Bayou. Table 4-5 presents annual average value of water environment quality of provincal control 4 sections in project area. Reservoir Water Quality According to the data from EMS net of Huizhou city in 2002, account about 7 reservoirs, including Shuidong Slope, Xiabao Brook, Yellow Cave, Rengtumiao Beach, Xian hillock, Gao Tree Below and Lianhe, Shuidong Slope, Xiabao Brook, Yellow Cave and Rengtumiao Beach have been polluted at different degree, reach water qulity, mostly pollutions are organic matter, other reservoirs water qulity are all right, reach .

Situation of wastewater discharge Situation of wastewater discharge of each county of Huizhou city respectively 2002 presents in Table 4-6. Table 4-5 Surface water quality in Boluo of Guangdong Province in 2003

River No./section pH DO CODCr BOD NH3-N TP Total System/County mg/l mg/l mg/l mg/l Coliform

Dongjiang 83/Dong an 7.02 6.8 6.44 1.08 0.465 0.075 1383

8 Data Sources: (1) The investigation of agricultural resources in Guangdong; (2) Consulting with experts from Guangdong Agriculture University.

37 River 85/Shahe 7.04 5.21 5.87 1.55 0.924 0.095 system/Boluo Bayou 112/Shilong 6.77 6.4 5.00 1.00 0.454 0.099 825 North River 113/Shilong 6.79 6.4 5.00 1.00 0.472 0.104 735 South River

Table4-6 Situation of wastewater discharge of each county of Huizhou city 2002 Wastewater Pollution discharge quantityton Each county discharge Organic Heavy cityregion quantity Other Total 104 tons matter metal Downtown Gross 3433.5330 15975.368 0.01 28.47 16003.848 of Huizhou ThereintoIndustry 821.52 303.29 0.01 28.47 331.77 Huiyang Gross 2890.4245 14169.40715 0.15 39.0 14208.5572 city ThereintoIndustry 621.59 556.4 0.15 39.0 595.55 Boluo Gross 2534.3015 9591.8693 0.11 71.27 9663.2493 county ThereintoIndustry 1096.03 962.24 0.11 71.27 1033.62 Huidong Gross 1734.0070 9973.2120 0.0 3.72 9976.932 county ThereintoIndustry 82.09 61.71 0.0 3.72 65.43 Longmen Gross 581.0911 3042.4964 0.01 8.10 3050.6064 county ThereintoIndustry 90.0 95.95 0.01 8.10 104.06 Gross 312.7086 1434.0716 0.07 3.91 1438.0516 Daya Bay ThereintoIndustry 82.89 55.16 0.07 3.91 59.14 Entire Gross 11486.0657 54186.4244 0.35 154.47 54341.2444 Huizhou city ThereintoIndustry 2794.12 2034.75 0.35 154.47 2189.57 noteorganic matter include volatility hydroxybenzene, petroleum, COD; heavy metal include Cr, Pb; other include cyanide, NH3-N; living sewage discharge quantity calculate according to 54.75 ton/person/year, the number of population equal to non-agriculture population +population; COD calculate according to 32.85kg/person/year.istic

38 Figure 4-1 Sketch map of Dongjiang water system surface water provincial control monitoring sections site

4.2.2 Ecological Environment of Boluo Table 4-7 presents the characteristics of major nature reserves in the project counties.

39 Table 4-7 Important nature reserves related to the project counties Name of Project Area of Items Remarks Reserve county the Nature preserved Reserve Luofu Boluo 9828 ha Not specified Protect objects :south subtropical Shan zone evergreen broadleaf tree and integrated rare animal and plant. Landscape in Provincial the preservation zone: Bai Shuimen Reserve fall, Niang spring, Long birth well spring, Chongxu temple, virgin forest 1168 kinds of vascular bundle plants were collected from the zone. Beasts: 16. Luofu Shan special plants: 6.

4.2.3 Socio-cultural Environment of Boluo Boluo county located in the middle south of Guangdong province, belongs to Huizhou city and very close to Guangzhou city, with 2870.47 square kilometers of land and account for 1.6% of province’s total. 4.2. 3.1 population and nationality There are 343 villagers’ committees and 2849 village groups in the Boluo county. The total population is 777.1 thousand, 51.29 percent are male and 48.71 percent are female among them. The population density is as high as 270 persons per square kilometer. But the natural growth rate of the population in Boluo is as low as 5.46‰. The rural and township labor forces in Boluo are about 347 thousand persons, the female labors are 169 thousand, account for 48.7 percent; the labors in agricultural sector are 220 thousand, account for 63.4 percent of the total.

Yuanzhou Township lies in the Southwest of Boluo county, with 108 square kilometers of land.There are 27 villagers’ committees and 100 village groups. The total population is 57.5 thousand, Agricultural Population account for 51.1 thousand, Minority habitat only lies in Zibei village, Henghe Township of Boluo county, not exceed 500 populations, main minority group is She nationality. But no Minority habitat in our project area. The detail information of Guangdong project county (town) population is presented in Table 4-8. Table 4-8 The population of the project county in Guangdong province Project Total Village Administra Village Total Agricultur Farmer location Area Town tiv groups Population al househol (km2) village (1,000) Population d (1,000) (1,000) Boluo 2870.47 20 343 2849 777.1 586.5 59.0 county Yuanzhou town of 108 27 100 57.523 51.101 11.862 Boluo county

40 Land Use Status in project county presents in Table 4-9, the statistic data of planted area and yield information for project county presents in Table 4-10.

Table 4-9 Land Use Status in project County in Guangdong Province (2002)

Project Mountain Plain Forest Cultivatable Area of Land Area Upland 2 county ous Area (km ) Land Area Water

(km2)

Boluo 2870.47 1291.71 1087.91 490.85 2300.51 60.4 260.3

Table 4-10 Crop area and yield information for project county (2002) Project county Fruits Mulberry Tea Peanut Vegetables Melon 561 Boluo Ha. 11972 20 212 10036 25071

Boluo ton 77447 1006 130 23866 567341 14173

4.2.3.2 Socio-economic The GDP of Boluo County is 9.76 billion Yuan at present value in 2002, account for 0.8% of the province, increased 10.1 percent compared with last year. The structure of the county’s GDP shows that the primary industry accounts for only a small share, only about 21 percent; the secondary industry is the main force of the county’s GDP and it trends an decreasing compared with last year; the tertiary industry is different, with an increasing tendency.

The farmer’s net income is increasing too, reached 3866 Yuan RMB per capita, with a 5.1 per cent’s increase compared with last year. But there are big differences among different towns. The highest is Shiwan town, about 5350 Yuan per capita; the lowest is Xiangshui town, only 2593 Yuan per capita. In agricultural production, the effective irrigated acreage is as high as 30,526.67 hectares, accounts for 69.2 percent of the total cultivated land.

The total value of agricultural production is 3.6 billion Yuan RMB at present value in 2002, with a 6.6% growth compared with last year. The structure of the value for different agricultural lines, including farming, animal husbandry, forestry and fishery, it shows that the farming is still the main production line in agricultural sector, it accounts for almost two-thirds of the agricultural output value.

In farming production, the total sown area is about 92.4 thousand hectares, including 48 thousand cereal crops, 2.85 thousand soybeans, 13.52 thousand cash crops, and 28.03 thousand hectares’ other crops. The cereal crops are very important, the total output of grain is about 250 thousand tons, even though decreased 11.2 percent compared with last year; sugarcane is the important cash crop in Boluo; and fruits are not only important but also very famous, increased 30.1 percent compared with last year.

41 In cereal crops, among the total output of the grain crops (249.5 thousand tons), the rice production is as high as 195.4 thousand tons, accounts for 78.3 percent.

4.2.3.3 Public and Animal Health The Boluo county is a main swine production area in Huizhou city. With the economical development and more and more limitation for the pig farms, many stockmen move their farms from Shenzhen, Guangzhou, Dongguan city to this county. In this county, SPP of swine is 465600 and marked head is about 625300 in 2003, while for Huizhou city, the number is 1080192 and 1438190, respectively. General speaking, Boluo county makes up half of the swine production of Huizhou city. As well as Yuanzhou and Jiutan town is concerned, it is the largest swine production area in Boluo county. The SPP of swine in this area is about 36550 and marked head is about 47400 in 2003. Compared with swine production, the cattle production in Boluo country is not developed. Take Yuanzhou and Jiutan town for example, the number of cattle is less than 50. According to our investigation, the main swine disease is diarrhea caused by E. coli and viruses, PRDC caused by many kinds of bacteria and viruses(Pasteurellosis, Streptococosis, App, Atropic Rhinitis , PRRS etc.), non-typical swine fever(hog cholera) and PMWS caused by PCV-2 ,PRRS and other not identified reasons. The most significant difference between Bolo county and other area in Guangdong province is that diarrhea caused by E. coli, salmonellosis ,TGEV, PEDV etc. has much higher incidence, which bring a great deal of losses to the swine production. Like other area in China and the whole world, PRDC become a kind of common disease. Hog cholera, which is the most important disease in 1980s and 1990s, become less and less important because of widely vaccination. We are glad to find although the stocking density become higher and higher, the local people are much healthier than before. Two of the most important diseases are Viral hepatitis and Tuberculosis, which have relatively higher incidence. Compared with 1980s and 1990s, the ill cases related to diarrhea have significantly reduced. The local doctor told us for a natural village of 1000 persons, there are 1-2 cases of diarrhea every month. Because the centers of disease control have no record regarding this respect, it is difficult to give a correct assessment. We believe it is the improvement of the living habit and living condition which lead to the descend of the diarrhea and we must admit the environment is become worse with the development of animal (swine) production. The data about public health survey of Boluo county and Jiutan present in Table4-11 and Table4-12 . As I have said before, these data should be rough and should not be regarded as the evidence to evaluate the environmentl impact associated with swine disease and livestock production in China.

Table 4-11 Public Health Survey of Boluo County Boluo Human: the number of total population 777074 male 398545 female 378529 year 2001 2002 2003 2004 Name of morbidity rate morbidity rate morbidity rate morbidity rate disease Brucellosis 0 0 0 0 0 0 0 0 Salmonellosis 0 0 0 0 0 0 0 0 E.coli 0 0 0 0 0 0 0 0 Shigella 0 0 0 0 0 0 0 0 Lepto 2 0 2 0 0 0 0 0 Viral 158 0 84 0 48 0 86 0 hepatitis

42 Rotavirus 6 0 4 0 0 0 1 0 diarrhea Tuberculosis 464 0 456 0 331 0 325 0 Japanese 0 0 0 0 0 0 0 0 encephalitis

Table4-12 Public Health Survey of Jiutan Area in Yuanzhou Township

Jiutan Human: the number of total population 19268 male 9721 female 9547 year 2001 2002 2003 2004 Name of morbidity rate morbidity rate morbidity rate morbidity rate disease Brucellosis 0 0 0 0 0 0 0 0 Salmonellosis 0 0 0 0 0 0 0 0 E.coli 0 0 0 0 0 0 0 0 Shigella 0 0 0 0 0 0 0 0 Lepto 1 0 0 0 0 0 0 0 Viral 0 0 0 0 3 0 1 0 hepatitis Rotavirus 0 0 0 0 0 0 0 0 diarrhea Tuberculosis 5 0 4 0 3 0 4 0 Japanese 0 0 0 0 0 0 0 0 encephalitis

4.2.3.4 Infrastructure The education system in Boluo is comparatively very good. There are 324 elementary schools with 87763 pupils, 45 junior middle schools and senior high schools with 45985 students, and 1 secondary specialized school with 1839 students. In Boluo County, there are also 1754 kilometers’ road for transportation, 27 hospitals with 728 doctors and nurses for public health, and a developed communication system, the total telephone numbers as high as 148.7 thousand, and the rural residents owns about 78 percent of the total. The total employment members are 502,390 persons in Boluo county.

43 5 Public Participation The proposed Livestock Waste Management Project in China (LWMEAP) aims at improving and supporting an integrated and comprehensive approach to managing and reducing livestock production waste load that is currently polluting the local and international waters, and to strengthen institutional capacity and decision-making systems for livestock management at the central and provincial levels in China. The achievement of these objectives should lead to reduction of liquid and solid pollution, leading to improvement of public health and a more equitable distribution of benefits generated from the rapidly growing livestock production. The project will create greater economic and social stability in the project areas as well as enhancing institutional tools for the project-selected areas and the whole country to implementation the Environmental Protection Plan. The LWMEAP is a livestock waste management project, aiming at reducing/eliminating soil and water pollution due to nutrient loading from animal manure within project counties through improving/introducing modern and adaptive manure management techniques within participating farms. The Guangdong provincial government and county governments strongly support the project and have made many constructive suggestions. 5.1 Consultation Method and Subject In accordance with the State environmental protection laws of the PRC, regulatory ordinance of Guangdong, the World Bank requirements, and to better learn the opinions and suggestions of the public in the areas affected by the project development, PMO has made every attempt to seek beneficiaries comments during the preliminary project preparation period by means of meetings, and farmer household contacts. The EA team also made 2 field trips to the project areas and visited a number of project counties proposed originally in Guangdong. Talks were held with the staff from local PMOs and the local governmental departments of agriculture, livestock bureau, and environmental protection bureau and farmer representatives, and their opinions and views on the project were solicited. Visits were also made to some farmer households to have an understanding of the status of organic and chemical fertilizer use, livestock production, living standard, public health and their understanding and attitudes toward the project. 5.1.1 Consultation with Family or Individual EA team visited local officials concerned at the county and township level and “typical” households on project sites of Boluo county during 21-23/April/2004 and 19-21/May/2004, is about 3 days each time, account for 6 days project sites visits total. The EA team consulted 4 “typical” households in project counties during its 2 field trips to learn their opinions and suggestions with regard to the proposed project development and recorded their opinions. Appendix 3 presents detail situations.

5.1.2 Inter-agency and NGO Consultation During its 2 field visits, the EA team visited local officials concerned at the county and township level and questions were asked so that their opinions and comments toward the proposed project could be recorded. Boluo County officials that EA team

44 meet every times including county subprefect Mr Luo Shiliang, county Department of Agricuture director Mr Zou Shichang, Department of agricultural section chief Mr.Huang Maoliang, EPB deputy-director Mr Zhang, county Financial Bureau section chief Mr Yang. Yuanzhou township officials that EA team meet every times including township deputy-alcalde Mr Liang Wohe, township Committee commissary Mr Liang Yaohong, township agricultural office director Mr Chen Wanliang, town EPB director Mr Lin. Every time visit about three pressman of county TV station have been making kinescope during the meeting. Number of persons we meet every visit account for 12 persons.Consultation meetings were also arranged with specialist within line agencies in Guangdong to hear their concerns and comments with regard to the proposed project. There is few NGO in China, especially in Guangdong, so up to now we still have not make contact with any NGO.

5.2 Public Opinion and Suggestion There have been several meetings during the project preparation phase of LWMPC with local villages and local officers to discuss the proposed projects and environmental assessments. These meetings have occurred at least two times and have resulted in full collaboration with local officials and full support of the project and the EA process. The many meetings with public officials in the Guangdong province showed that these projects are extremely positive and well received by the public and help the project area to reduce the bad impact of the livestock manure. Directors of hogpen usually support proposed project, but no money and capacity to invest for waste management facility, and be short of awareness on environmental issue. Now almost no any waste management facility been done in all kinds of Farms in project area. The following findings are based on the consultation made by the EA team during its 2 field trips to the project counties in Guangdong, and the results of discussion conducted by the Minutes of Public Discussion in Guangdong. The main findings are as follows: Most of the farmers interviewed support the project. Majority of the interviewed farmers would like to receive the World Bank advice and subsidies. Most interviewed farmers view odor from the livestock activities and to a lesser extent, water pollution as major concern. The causes of water and soil damage are believed to be both natural and artificial. However, few of the interviewees were eager to invest money to improve the natural environmental conditions and see that as the responsibility of local/national government. Majority of interviewed line agency scientist consider the project as an environmentally sound project and they believe that if the project could effectively implement environment management and mornitor plan, reduce the nutrient load mass in water and soil within the project areas to prevent water pollution and soil degradation, the impact of the project on the environment should be highly positive, but caution the project that waste management measures, including enforcement of livestock policies and introduction of new manure management technologies, without adequate provision for public acceptance of new technologies could introduce major obstacles to the sustainability of the proposed activities. They recommended to include plans within project monitoring and management component to effectively enforce control of the concentration of discharge coming from emission mouth of manure management plant and animal numbers in project

45 areas, to prevent any increase in degradation of the already degraded natural soil and polluted water environment of Guangdong; In general, all the cadres at grassroots units, staff of the provincial and city project offices, staff of the livestock bureaus at provincial, city and county levels and officers of the Ministry of Agriculture who were interviewed strongly support the implementation of the project. They view this project as a very good one, which will strongly promote the development in Guangdong, even in the surrounding region or in whole coastline region of South China Sea. The majorities of the interviewees regard this project as a good environment project, which, if properly implemented, will not generate environment pollution or cause damage the ecological environment. They believe that the project bears important significance on the prevention of the local and global environment pollution coming from rapidly increasing livestock production in the watersheds in the coastal areas of China. 5.3 Information Disclosures and Feedback Information disclosure bulletins were posted in the two project counties in Guangdong by PMOs in May 2004. The bulletins include information on the project briefing, potential environmental impacts possibly brought about by the proposed project and solicitation for comments and suggestions from the local farmers and the public; The PMO stored the EA TOR in the county libraries of all project counties in May 2004, so that the public can read it and comment on it without the permission of the local governments. 5.1.3 Information Disclosure Plan of the PMO Mass media such as press and bulletins are employed to inform the public of the significance of the project, the project briefing and the environmental aspects related to the project. The draft EA Report will be availed to the public. The PMO can also through electronic media, put Chinese version of EA reports and other Project-related documents such as RAP, IPDP, etc. on municipally or county governmental web sites on the Internet that gives public a broad and comprehensive overview of project object and activities, and make an available electronic mailbox, which provides interested parties with an opportunity to provide their comments to the preparation and implementation of livestock waste management project. Through all kinds of medium such as TV, broadcast or newspaper, propagandizing the project. The PMO has agreed to make the document available in the library of each project county concerned, and the names of the places where such documents are available to the public will be published in newspapers. In this case, the public can have access to the information concerned without going through a governmental procedure. The PMO will set up complaint telephone in each level of the PMOs, gathering and recording the public’s complaint on environmental issues. Upon receiving the complaint, the provincial PMO should make arrangement with local (county) PMO to solve the issues on the site along with local EPB staff and other relevant government authorities within 48 hours. All concerned information can be disclosed locally by the end of January 2005.

5.4 Beneficial Participation Plan In order for the farmers to participate in the project design more actively, during project pre-appraisal period it was suggested to the PMO to develop a detailed beneficial participation plan. Presently a beneficial participation plans for LWMEAP is being prepared by the PMOs. The plans detail participating activities in each stage

46 of project implementation and participants including farmers, government organizations, NGOs and particularly the disadvantaged groups including women and minority nationalities in the project area. If any minority nationalities are identified, minority report will also be prepared by the PMO. According to the social assessment group’s finding, no minority groups are present in the project county. Therefore, there is no need for preparation of Ethnic Minorities Development Plan. However, according to the Bank requirements, social assessment team is preparing Beneficial Participation Plans (BPP) and resettlement procedure guideline for project in Guangdong. 5.5 Summary of Public Participation The LWMEAP has won strong support from each level of government of Guangdong that will play a role of administrative guaranteeing in the successful implementation of the project. In addition, the majority of consulted livestock farmers are willing to participate in the project and expect that they will benefit from it, which lays a solid foundation for project implementation. The PMOs attached great importance to the public opinions and is preparing a detailed beneficial participation plans and concrete plans for information disclosure of the LWMEAP as per World Bank safeguard requirements. Information disclosure will develop a favorable working environment by involving livestock farmers from early stages of the project and allow them to have a better understanding of the project, propose constructive suggestions and actively participate in the project plan and design. The project has integrated the proposed suggestions into the design of the project, which will play a role in safeguarding the livestock farmers’ benefit from the project. As to the environmental concerns caused by the proposed project, the EA team and designers of all project components have worked out corresponding mitigation measures, which have been incorporated into the project design documents.

47 6 Analysis of Alternatives Since the propose LWMEAP is mainly a rehabilitation and improvement project and considers the improvement of natural environment involving water and soil resources, public health, and living status of farmers the project study team considered to only review the ”with” and “without” project scenarios and no other alternatives were considered. This chapter will discuss the “with project” and “without project” alternatives. 6.1 Analysis of “Without Project” Alternative Urbanization and population increase and improvement of living standard in Guangdong Province of PRC has increased the demand for meat products and provided the favorable economic condition for livestock development. Urbanization and increase in demand for animal products have been accompanied with the specification and intensification in animal production and disintegration of crop and animal producers. Majority of livestock production operations in Guangdong are based on household business and small private farms or enterprises. Due to high demands, household and farming income has been increasing steadily in the animal breeding areas of Guangdong province . However, the economic development has caused environmental pollution and poor health condition within high population density cities and counties in the Pearl River Delta, including ZengCheng, XinHui, BoLuo, GaoMing and SiHui counties and DongGuan City. Surface and ground water quality monitoring data have shown appreciable increase in organic and nutrient loading of water resources and their bacterial contamination. The main problem of livestock waste management in Guangdong is that limited use of livestock waste recycling are being introduced and promoted. The lack or inadequacy of integration between animal production and crop production, lack of appropriate economic analysis to assist policy makers in making the appropriate decisions with regard to manure management policies and in balancing economic development, soil fertility/manure application on land, and environment protection is a major reason for lack of good manure management practices in Guangdong Province. The environmental pollution problems are significant at medium scale farms and even more problematic when dealing with the small scale farms (multiple-point source pollution). 6.1.1 Current Status of Livestock waste management/disposal Less than 10% of livestock development enterprises are using modern manure management technologies. The majority of solid manure is sold to local farmers in Guangdong for use in crop production (orchards, sugarcane, vegetables). Some livestock farmers use liquid and solid manure as feed in their fish ponds and orchards, and discharge the rest of untreated liquid waste directly into surface waters and dry drainage ways (soil). Environmental pollution problems due to livestock waste disposal is significant in medium scale farms and even more problematic when dealing with the small scale farms (multiple-point source pollution), which usually do not use any manure management measure for prevention of environmental pollution. Biogas digesters have been used in some private farms to treat livestock (pig) waste, mainly to remove odor nuisance and to satisfy neighbors’ complaints. The National Strategy has had programs to support the farmers to install biogas. Although technology for building and operating biogas digesters are quite simple, many operators are not aware of appropriate implementation methods. Many constructed biogas tanks are too small in size (under designed). In addition, the discharge from biogas tanks do not meet the discharge standards for the domestic wastewater as

48 stipulated in Discharge Standard of pollutants for livestock and poultry breeding (GB18596-2001). 6.1.2 Current Status of Natural water, soil and air Nitrogen and Phosphorus overloads on the whole Chinese coast of the South China Sea are 3.1 and 2.4 tons per square kilometers, respectively. Currently, animal manure is estimated to account for 47 percent of the phosphorus supply and 16 percent of the nitrogen supply. With the dramatic expected increase in demand for meat and milk, this share is believed to continue to grow. A 1996 World Bank analysis for the coastal regions of Central South, South-west, and East China showed that the Chemical Oxygen Demand (COD) from untreated piggery waste alone accounted for about 28 percent of the current urban plus-industrial COD loads. However, this share is estimated to rise to 90 percent by 2010. In greenhouse gas emissions, livestock contributes about 20 percent of the global methane emission and 10 percent of global N2O (nitrous oxide, a much more aggressive greenhouse gas) emission. While there are no recent figures for East Asia, simple extrapolation of the global data, with some adjustment for the poor manure storage and application techniques used in East Asia, indicates that the intensive livestock production systems in East Asia contributes to about 0.5 percent of global methane emission and about 3 percent of global nitrous oxide emission. Concentrated livestock production is causing significant local, regional and global environmental damage, particularly to freshwater and marine aquatic systems, for two reasons: ¾ Due to weak or non-existent land use planning and environmental regulations (zoning, certification) and enforcement of present environmental laws, industrial livestock enterprises bear few of the environmental costs they impose, and have little incentive to reduce them; and ¾ Most industrial livestock producers are not aware of the extent of the environmental problems they cause or of the most cost-effective options to mitigate them, and the affected communities are not well informed or organized to pressure them to reduce the pollution they cause. Most livestock farmer interviewed in project counties are well aware of the water and soil pollution problems, but are not in a position to do something about it. 6.1.3 Present status of applied research, extension and training At present the infrastructure for conducting applied research and technological development exist in Guangdong. However, the level of training of available technical staff is not up to the standards and research budget in areas of technology development and policy formulation in livestock waste management and animal husbandry is inadequate. Another major constraint within project areas in Guangdong is the lack of well- developed and assertive extension department to disseminate the results of applied research in livestock waste management to the livestock farmers. There is a large gap between the available scientific knowledge and what is available to the livestock farmers in the areas of manure disposal technologies and pig farm management strategies construction and improvement. The inadequate number of well trained and experienced extension personnel makes it difficult to launch regular farmer training,

49 and a lot of new technologies and new research results cannot be disseminated to farmers, limiting farm production improvement. During field visits of the EA team, strong desire for training was expressed by both extension personnel and the livestock farmers. 6.2 Analysis of “With Project” Alternative 6.2.1 Analysis of Reducing pollution According to the investigation conducted by Environmental Protection Agency and Agricultural Department of Guangdong Pronvince in 2000, 30.61 million tons of wastewater were generated by livestock production where 29.55 million pigs were produced in the year. According to 2002 Yearbook of Guangdong Province, 31.45 million pigs were produced in the year 2002. Industrial systems might be responsible for about 70% (to be verified), meaning 22 million pigs generated waste-water that might be discharged to rivers (assumption that smallholders for other 30% had no waste-water discharge). According to Liao et al. (1998), each pig in the industrial system generated 0.02 m3/d wastewater, if each pig grows for 90 days, it generates 1.8 m3/pig wastewater. For the whole province, 39.6 million tons of pig wastewater were then produced in 2002. Pig production wastewater contains CODcr 10,000-13,000 mg/L, NH4-N 1200-2100 mg/L, T-N 20-25 g/L, T-P2O5 50-100 g/L, T-K2O 18-23 g/L (Liao et al., 1998 ). Other references showed lower nutrient loading (Table 6-1). For estimation of the pollution contribution, it might take the values: CODcr 10g/L, T-N 1 g/L, NH4-N 0.8 g/L,T-P 0.25 g/L(Nutrient loading of pig wastewater is very different according to various modes of pig waste management ). 3 3 The total waste generation for 2002 may be then: CODCr 396x10 tons, T-N 39.6 x10 3 3 3 tons, NH4-N 31.7 x10 tons, T-P x10 tons, 9.9 x10 tons. Reduction of pollution is 3 3 3 3 CODCr 380.2x10 tons, NH4-N 28.5 x10 tons, T-P x10 tons, 9.6 x10 tons respectively if pig wastewater is discharged reachs Discharge Standard(Table 6-2 ). Certainly this is rude statistic, pig wastewater and pollution quantity is different according to various kinds of livestock production(boar or breeding), different season and way of waste management. Although the demand of livestock production will increase in the near future years with development of social and economy in Guangdong. If industrial livestock systems adopt effective waste management measures guided by the project , pollution quantity will be cut down largely in the project area and Guangdong province.

Table 6-1 Pollutants contents of pig production wastewater according to different references (g/L) Liao et al., 1998 Li et al., 1999 Yu and Yan, 2000 Chen et al., 2002 (Guangdong) (Guangdong) (Shanghai) (Jiangsu) CODCr 10-13 11-16 0.35-0.59 - T-N 20-25 0.68-1.1 0.4-2 NH4-N 1.2-2.1 0.16-0.92 T-P 22-44 0.19-0.31 0.039-0.192 T-K 15-19 0.26-0.33 0.1-0.4

Table6-2 Reduction of pollution after implementing the project Pollution Discharge Nutrient loading Discharge Decrement of concentration standard(g/l) (103 tons) quantity(103 pollution (g/l) tons) (103 tons) CODCr 10 0.4 396 15.8 380.2 T-N 1 39.6

50 NH4-N 0.8 0.08 31.7 3.2 28.5 T-P 0.25 0.008 9.9 0.3 9.6

6.2.2 Analysis of “With Project” Alternative The proposed Livestock Waste Management Project in Guangdong Province of PRC (LWMEAP) aims at improving and supporting an integrated and comprehensive approach to managing and reducing livestock produced nutrient load that is currently polluting the local and international waters, and to strengthen institutional capacity and decision-making systems for livestock management at provincial level. The achievement of these objectives should lead to reduction of soil and water pollution from livestock liquid and solid manure, leading to improvement of national and international water quality and public health, and a more equitable distribution of benefits generated from the rapidly growing livestock production. The project should create greater economic and social stability in the project areas as well as enhance institutional capacity in the project-selected areas and the whole province to better implement effective Environmental Protection Plans. Although the impact of the project appears to be small considering the size and magnitude of the livestock industry in Guangdong, the project will have a positive impact on the socio-economy of the project beneficiaries and their health status. The proposed project, if properly implemented, should strengthen the institutional capacity in dealing with livestock waste issues and provide valuable information on appropriate and adaptive livestock waste management technologies in the Province, providing great assistance to the planners and policy makers in developing and enforcing the appropriate environmental laws and policies on Livestock Waste Management in order to reduce nutrient loading in the Pearl River Delta and ultimately, the South China Sea. Livestock production of medium and small scale farms in Guangdong is less developed compared to larger scale farms in Guangdong and some other countries in the region. The proposed project could have significant positive impacts by creating opportunities for improvement of health status in the surrounding communities, reducing nutrient loading of surface and groundwater resources, reducing the need for use of expensive and highly energy demanding chemical fertilizers on farmers’ fields, increasing the quality of the livestock (especially pig and poultry) , improving the livestock farmers’ knowledge of livestock production, increasing farmers income and changing of lifestyle in the farming communities. Implementation of the proposed project, although not in a large scale, could have significant positive impact at pilot level on methodology used to improve the status and quality of livestock and livestock environment and related natural resources (protection of water resources, water use efficiency, protection of soil resources and nutrient loading). In addition, the livestock farmers, living within the neighboring district and provinces, could also adapt the lessons learned from the project implementation site that could provide additional intangible project benefits. Regarding the possible increase of multiple-point source pollution, a potential for runoff of nutrient rich material from pig feedlots and also the dead animals, the project has developed and is going to promote monitoring of the nutrient loading in surface water bodies and groundwater resources to reduce/prevent the occurrence of multiple-point source pollution downstream of the project areas. Better watershed

51 management and incorporation of best management practices in livestock development and adjoining farming activities based on the available and future findings of applied research will be built-in the project development. In addition, the EA team has developed an environmental management plan that includes effective mitigation measures and environmental monitoring program, which has been incorporated into the project design documents and will be carried out by the PMO and project implementation teams to reduce potential negative impacts to minimum. To sum up, if successfully implemented, the proposed project would not only promote the local social and economic development, but would also increase the living standards of the framers and their health status. In the “with project” scenario, the impacts of the project on the natural environment are believed to be highly positive, while the social and economic impacts appear to be positive. The Project is seeking a win-win approach, i.e. to both develop livestock manure treatment plans through hygienic environmental improvement, and assure sustainable reutilization of manure resources through nutrient balanced and timely application of manure for crop production. Capacity building at the provincial, county, and farm level should create better and more sustainable livestock development, more efficient waste management, and a better cost-benefit presentation of the proposed changes to motivate pubic participation in proposed livestock waste management options.

52 7 Analysis of Environmental Impacts & Proposed Mitigation Measures Environmental effects can occur during both the implementation/construction and operational phases of the project. This section identifies the main sources of effect for both phases of the proposed livestock waste management project, describes the predicted impacts from these activities, and then recommends appropriate mitigation measures that should be adopted to minimize those impacts. The EA team carried out a detailed environmental analysis of the proposed project counties. Since exact location and size of the proposed livestock management projects are not finalized yet, a more generic review of potential impacts is presented in this report and more detailed EA review will be required after finalization of exact location, size and manure management model that will be implemented at each proposed project site. The environmental impacts of the project can be divided into the reversible or irreversible according to the nature of the impact, and into the short-term and long- term according to the temporal horizon. The irreversible impact is mainly the permanent occupancy of land that might be brought about by the proposed project, potentially for the construction of aerobic and anaerobic lagoons for medium and large-scale pig farms, and potential reallocation of land for use as s biogas pond, manure deposit room, and other infrastructures that could be proposed under different project components. The short-term impacts include the temporary land occupancy, water pollution during construction of the facilities, and minor noise and air pollution, sediment loading, etc. occurring during implementation/construction phase. The long- term impacts would mainly consist of permanent land occupancy for manure management infrastructures. 7.1 Potential Sources of Effect Potential sources of effect have been identified through review of project documents, and field visits by the EA team with respect to the environmental aspects that could potentially be affected. The available project information was also used to identify if any of the proposed construction and development activities could potentially cause environmental impacts, and the main identified issues are described below: Access Roads: Although not specifically identified in the project design and/or feasibility documents, there might be a need to construct access roads, usually very short, to areas proposed for constructing manure management plants for large pig farms, and/or if communal manure management plants are planned to be constructed. The actual locations of the above facilities are not finalized as of the date this report was prepared and actual needs and total length of the access roads, if any, will only be known after finalization of the sites. If the proposed sites are not already accessible to trucks, backhoes, loaders, and other heavy machinery that are required for the construction of such facilities, specially larger pig waste handling facilities. Even if access roads are available, there might be a need for road upgrades, on a small scale, to allow machineries and equipment to be delivered to the propose county and pig farm sites, and to haul the soil material from excavation of animal waste fermentation ponds, sedimentation tanks, etc.

53 Machineries: Machineries for construction work, especially for construction of appropriate waste management facilities, include cement mixer, excavator, vibrator, loaders, backhoes, and trucks. Temporary Land Occupancy and Labor Camp: During project construction, temporary land occupancy cannot be avoided. However, it is assumed that the labor camps during construction of larger pig farms and their waste handling facilities will be within the perimeter of the area earmarked for construction of the pig farm manure management facilities and no additional land will be occupied by the labor camp involved in construction of those projects. With regard to irrigation related construction, small parcels of land might be needed for temporary occupancy during construction of the canal systems (if mixing of liquid manure and freshwater is planned as a means of land application of slurry), and construction of on-farm irrigation infrastructure. In the construction/rehabilitation of canals, mobile cement mixing plants and storing houses might be required, depending on the magnitude of construction/rehabilitation activities. It is assumed that houses will be rented from the local farmers for storage and it is also assumed that the majority of the labor force will be the project beneficiaries (livestock farmers) and there will be no need for the establishment or construction of labor camps within the project areas. Public Water Supply: The potable water for farmers and labor camp/construction workers can be supplied by surface water/tap water and water for the construction sites can be supplied by groundwater/wells in the piggery farms. It is separated between the residential areas of the project beneficiaries and the construction sites of manure management facilities, but is not far away from each other. 7.2 Analysis of Environmental Impact & Proposed Mitigation Measures in Construction Phase, Guangdong Adverse impacts of the project during implementation/construction phase are mainly of short-term variety such as temporary land occupancy, water pollution (potential sediment load increase), and minor noise and dust pollution. These impacts are not believed to be significant and no major impact/mitigation measure is envisaged during implementation activities, if appropriate general design and construction practices are followed. However, if not managed on an environmentally sound basis, any project development activity, no matter how small or insignificant, could cause significant environmental impact. In the following sections, the major potential impacts and proposed mitigation measures (sound environmental management) are outlined. 7.2.1 Flora and Fauna and Nature reserves Impact Analysis: During implementation/construction phase of the project, a certain amount of vegetation could be permanently or temporarily disturbed due to construction of waste handling facilities, construction and potential road upgrading. As stated in Chapter 4, in most areas that could be earmarked for constructing manure management facilities, vegetative cover is either cropland or is areas where plant have been previously converted to croplands, but have been left idle for some time. The dominant species of wildlife are believed to be rabbits, various mice species, and other rodents and serpents, usually of low protection levels. Therefore, no significant effect on vegetation and wild animals is envisaged in theses areas.

54 A couple of nature reserves/national parks exist within the project counties. Since the final location of project sites are not yet finalized, it is imperative to ensure that none of the identified project sites are within the nature reserves core or buffer zones. Any form of manufacturing and economic activity is forbidden inside the buffer zone or core zone of nature reserves according to the Notice on Further Strengthening the Administration of Nature reserves in the People’s Republic of China (The State Council, No.111, 1998). Therefore, before finalization of each specific project area in the proximity of nature reserves, the PMO must contact the responsible agencies (Forestry Bureau, Environmental Protection bureau, Agricultural Bureau, Animal Husbandry Bureau, etc.) to confirm the actual relative location of the proposed project to the natural reserve. The potential adverse impacts of the construction and implementation activities entailed by the proposed project near nature reserves/habitats of wildlife are mainly reflected in the following aspects: 1) Increased possibilities of encroaching to the nature reserves and the habitats of wildlife within them during construction period; 2) Blockage of the travel/migrating routes of animals that drink and eat outside the reserves; and 3) Directly destruct vegetation inside or outside the nature reserves. Mitigation Measures: 1) During project plan and design, attention should be paid to avoiding environmental sensitive areas like nature reserves and wildlife habitats; 2) During preliminary design, the PMOs should submit the project plans of the sub- projects near nature reserves and wildlife habitats to the appropriate lined agencies, responsible for administration of respective nature reserves for review and approval; 3) If construction machineries are used, they should be kept far from nature reserves and wildlife habitats; in case those construction activities near these areas cannot be avoided, effort should be made to reduce noise as low as possible; 4) No new land (forested or natural grassland) should be converted to other uses. According to the PRC laws, conversion of natural grassland/forest to other uses is forbidden unless they are replaced by new forest/natural grassland within the neighboring areas. In other words, there should be “no net loss” of natural grassland or forest habitats; 5) Construction waste should be properly disposed to avoid any impact on the surrounding areas; and 6) PMOs should enhance workers’ awareness of protection of natural resources and wildlife, and provide necessary directions to prevent them from entering the buffer and core areas of the nature reserves, not to hunt wildlife and/or damage vegetation inside the reserves. If any rare or endangered (protected) plant species are present, the related PRC regulations should be followed and implemented. 7.2.2 Soil Erosion

55 Impact Analysis: Soil erosion is the result of the long time combined impact of natural factors (wind and water) and is a necessary process in the formation of soils. However, the accelerated soil erosion, caused mainly by human activities is not only destroying the precious natural resource and dislodges the fertile topsoil, but also cause the development of sheet, rill and gully erosion that are unsightly and cause major economic loss. No large-scale soil erosion is envisaged. However, during Proposed construction activities, especially in areas were aboveground manure management ponds have to be constructed, the activities may disturb the existing landform, especially in areas with already fragile soils do exist and damage to the vegetation cover could cause increased rate of soil erosion. The activities that potentially could cause soil erosion include cut and fill work associated with any new drainage systems, construction (pipes, canals, siphons) between pig farm and manure treatment plant (depending on topographic and soil condition) and excavation of waste treatment ponds . Mitigation Measures: 1) After the construction of any facility is finished, fill material, vegetation planting should be arranged to cover the exposed land soil. To get the best effect, the plantation renewing should be completed one month in advance to the rainy season; 2) During construction of facilities, excavation should be avoided during rainy days. Sand bag, silt fence and/or straw mat should be used down slope of cut areas to reduce soil erosion and prevent increase in river sediment load; 3) All cleared land should be planted as soon as possible to prevent soil loss by water and wind erosion and surface runoff during the rainy season; 4) The waste earth and stone chips, if cannot be used in construction, should be piled in designated areas and either be removed to dump sites or be compacted layer-by-layer and then be timely covered with vegetation; and 5) The excavated surface soil should be piled separately to be used as the raw materials for waste bank, canal embankment and farmland reclamation. 7.2.3 Acoustic Environment Impact Analysis: The main potential noise sources during construction are due to construction machinery and hauling trucks. Although the noise impact during construction period is temporary, the noise produced by machinery, if used in the project construction activities, is characteristic of high sound intensity and irregularity, if not controlled, the machinery noise would have impact on the surrounding acoustic environment. According to the attenuating model of point source noise, the estimated results of machine noise attenuating with distance are shown in Table 7-1.

Table 7-1 Estimated Noise Value of Construction Machinery Machinery Estimated Noise value dB (A) 20 40 50 100 Description 5m 10m 60m 80m 150m 300m m m m m

56 Excavator 84 78 72 66 64 63 60 58 55 47 Mixer 87 81 75 69 67 66 63 61 58 50 Bulldozer 86 80 74 68 66 65 62 60 57 49

According to GB12523-90 Noise Limit at Construction Site, the limits are 70 to 75dB(A) in daytime, 55dB(A) at night. The daytime noise produced by construction machinery is within the noise limits of GB12523-90 at locations 50m from the construction site, while that of night are within the noise limits at locations 300m from the construction site. At night, the impact of construction machinery noise is more serious. Therefore, it is suggested that night construction should be as far as possible. The construction machinery operation site of fixed locations should be located in places where there are no schools or large residential areas within 300m from the operation site. GB12523-90 Noise Limit at Construction Site presents in Table 7-2. Table 7-2 Noise Limit at Construction Site (GBl2523ü90) Unit dB(A) During Noise Limit Noise Sources Construction day night Cubic meter Bulldozernavvyloading of earth and 75 55 machine stone Forbid Driving All kinds of pile drivers 85 construction Concrete Makeup 70 55 MixerExcavatorElectrcity saw Fitment CraneElevator 65 55

Mitigation Measures: 1) In order to prevent any noise related impacts and to follow the PRC’s noise limit requirements, if there is residential areas within 300m of the construction site, construction activities are forbidden between 22:00 and 06:00 at night, and 12:00 to 14:00 in day time; the construction crews should comply with this regulation; 2) The access roads should be selected away from such sensitive locations as schools, residences and hospitals. When dense residences exist 50m within access road, night transportation is forbidden; 3) When the construction site is close to school, no construction work with heavy noise machines should be arranged at school time; when the construction site is close to densely populated residence, construction work with strong noise machines should not be arranged at nighttime.; and 4) The construction operator’s work time should be arranged in accordance with the labor hygiene standard. Personal protection measures such as wearing earplugs and helmets, etc. should be provided to the operators. 7.2.4 Air Quality

57 Impact Analysis: The only potential air pollutant in the construction and implementation period is the potential raised dust due to the use of machinery, excavation activities (lagoon construction, biogas pond, digester location, etc). In order to monitor air quality, the total suspended particulates (TSP) is measured. TSP pollution caused by the excavation and filling operations is closely related to the weather: The pollution is comparatively severe at the areas leeward to the construction sites in dry, windy weather condition, otherwise the state standards can be normally maintained at the distances 50 to 500m from the construction sites. In Guangdong province that dry and windy weather condition is scarce and dust problem should not be a significant issue. However, during dry autumn and winter months, care must be taken by watering the dusty road to avoid increased dust pollution from use of trucks and heavy machineries. During construction period, the loading, unloading, and transport of construction materials will cause TSP pollution along the route. Based on the monitoring findings of similar conditions in construction sites, the concentration of TSP caused by hauling vehicles can exceed the Grade II standard by 10 times at a distance of 50m leeward from the road side; the excess can be 4 times that of the required standard even at a distance of 150m from the road side. This suggests that the flying-dust pollution caused by transport vehicle along the access roads could be significant if construction is done during dry, windy days. However, as the distances from dust source increases, the concentration contribution will fade out quickly, such that at 300 meter from the construction site, it basically satisfies Grade II standards. Mitigation Measures: 1) The mixing plants should be set up at the leeward side and 300m away from the sensitive locations of residences, hospitals and schools. The mixing plant should be equipped with sealing device, shock absorber and dust remover. Labor protection measures should be provided to the operators of the construction machine such as eye mask and mouth mask; and 2) Building sites and dirt roads used by construction and hauling machinery should be sprayed from time to time to prevent secondary dust flying. 7.2.5 Cultural Heritage Impact Analysis: According to the findings of the social assessment team, no Cultural Heritage distributing in Project areas. Mitigation Measures: Not applicable. 7.2.5 Minority Nationalities Impact Analysis: According to the findings of the social assessment team, no minority nationalities live in Project area. Mitigation Measures: Not applicable.

58 7.3 Impacts & Proposed Mitigation Measures During Project Operation in Boluo County of Guangdong Since the main objective of the project as described in Chapter 2 of this report is to improve general environmental and social-economic condition of the project area and to reduce nutrient loading of soil and water resources by livestock waste, if the project is implemented successfully, the negative environmental impacts of the project should be minimal. However, due to the nature of the project, a number of potential negative impacts can not be avoided. A number of activities, especially if not handled in an environmentally sound manner, can potentially have significant adverse effects on both natural and social environments. This section discusses such issues and provides mitigation measures to prevent or minimize the potential adverse environmental impacts. These potential impacts are described separately based on three different potential manure management processes that are identified by the project. The three groups corresponding to proposed livestock manure treatment technology include: (1) biogas production, (2) lagoon systems (aerobic and/or anaerobic), and (3) soil application of treated liquid and solid manure. 7.3.1 Lagoon System Generally, if successfully implemented, lagoons certainly bring about more environmental benefits than without the project scenario. Microbial action in the lagoon substantially reduces chemical and biochemical oxygen demands (COD and BOD, respectively), total solids (TS), volatile solids (VS), nitrogen (e.g. nitrate nitrogen, organic nitrogen) and phosphorous component of livestock manure. However, lagoon systems could have potential environmental risks due to improper operation, under sizing, inappropriate transport of manure stock (trucks, piles, piping, etc), insufficient aeration mechanisms, unfavorable weather condition causing overflow, breakage of embankments, if build over ground, etc. Major environmental impacts could include water pollution due to overflow or breakage of the embankment, odor problems due to poor aeration, and insect (mosquitoes) proliferation that could not only be nuisance to neighbors, but could also cause increase incidence of water-borne diseases such as malaria. Water pollution Impact assessment: Water pollution can negatively impact the quality of both surface and groundwater resources within and downstream of the project area. Risks of spills, structural failure, and purposeful discharges must be taken into account. Since the project is not proposing full treatment of livestock manure, the effluent from lagoons contains substantial nitrogen and phosphorus nutrient load and should be disposed on agricultural lands as plant nutrient source. Effluents from well-designed and properly operated systems have a very low potential for pollution of water resources. However, unfavorable weather events such as repeated typhoons or frequent occurrence of high intensity rainfalls may significantly increase the potential nutrient pollution risk from open lagoon systems due to potential overflow. There are two potential pollution pathways during operation phase. If a lagoon overflows or if lagoon contents are purposefully drained into a surface waterway, this material will contaminate the receiving waters. On the other hand, poor construction of lagoon dikes, especially in the case of above ground lagoons, can lead to lagoon

59 dike failures. In both cases, pollutants from lagoons will pollute receiving water bodies and cause significant impact on downstream flora, fauna and human settlements that are relying on using the surface and groundwater resources. Movements of the pollutants in water flow could cause groundwater pollution through percolation, especially in areas with large proportion of coarse texture soils. There are two other possibilities for groundwater pollution in a lagoon system: seepage through the lagoon floor if the soils are coarse texture or if there are large percentage of connected macropores, and seepage of nutrient under the manure storage areas if the floor is earthen, lateral flow through the side walls of the lagoon (through flow). There is also a potential risk of nutrient loading of groundwater in agricultural lands used for manure application if excessive levels of effluent are applied to the cropland and/or if the manure is applied at inappropriate times (when soils are saturated, just before inception of rainfalls, wrong application timing, etc). The latter creates a situation in which more nutrients, especially nitrogen is being applied than is being used by the crop. Excess nitrogen will be transported beyond the root zone through leaching process and will eventually appear in the groundwater, causing major health problems especially in children and expecting mothers. Mitigation measures 1) Appropriate and effective technology and management alternatives must carefully be considered and planned in order to achieve required levels of environmental acceptability. 2) Design and build a collection and/or treatment system for wastewater from livestock confinement buildings. 3) Lagoon must be designed strictly following technical criteria such as co-efficient of percolation of floor soil material in the constructed lagoons through measurement of percolation rate, infiltration rate, etc within the substrata. 4) It is forbidden to discharge lagoon effluent into surface water bodies at any times except in special circumstances when specific size storm events have happened that can potentially cause structural breakdown. Under such special conditions, it is generally assumed that there will be sufficient water in the water courses to minimize the effects of the discharged effluent from the lagoon on natural resources (dilution effect). In case lagoon effluent must be discharged for acceptable reasons, relevant discharge standard of pollutants for livestock and poultry breeding (GB18596-2001) must be met. According to this standard, maximal limits of daily average discharge concentration for the main parameters as follows: COD: 400 mg/l; BOD5:150 mg/l; SS: 200 mg/l; NH3-N: 80 mg/l; TP: 8 mg/l; coliform: 10000/ml; ascarid egg: 2/l, detail is presents in the Appendix 4. 5) Lagoon dike specifications should be prepared and fully adhered to ensure that lagoon dikes are stable and will not fail under even the most extreme weather conditions. Air pollution Impact assessment: Air pollution is most often related to manure management techniques. Toxic gases that can be predicted during lagooning operation are CO2, CH4, H2S, NH3, NOx,, and some organic gases. In addition, there are some small amounts of microbial biomass; pathogens and weed seeds. These gases are generated especially from first

60 phase of degradation process of the livestock manure and urine and are potential sources of air pollution, some of them (e.g. CH4, CO2) are greenhouse gases. Dust can also be a problem due to activities of manure collection and transport trucks. Odor problems: Odors are primarily the direct result of gas emission as the products of anaerobic decomposition of manure, and are secondary source of air pollution. Large anaerobic lagoons and use lagoon effluent for irrigation has the potential to emit odors that can travel long distances. Heavily loaded lagoons are a notorious odor source. The effluent from anaerobic decomposition of stored manure (composting process) also has a volatile odor. Another major odor emission source is the sprinkler or nozzle that is used to distribute liquid manure as part of the land spreading. Liquid manure on the surface of the ground continues to emit odor until it dries or is absorbed by the soil. Collection and transport of manure by pipes or by trucks are also a source of odor if pipes leak or losses from trucks. Mitigation measures: 1) Manure management options that reduce gas emissions and odor levels should be favored. For example, appropriate collection frequency can reduce odor dispersion in livestock confinement buildings. Lagoons can be covered and gas be collected for biogas development, thereby reducing odors. 2) Control operation process of lagoons and prevent or minimize toxic gas emission, According to Emission limits of air pollutants of Guangdong (DB44/27-2001), the maximum limits of NOx is: 0.12 mg/m3. Others according to Hygienic Standards for the Design of Industrial Enterprises (TJ36-79)--- The maximum permitted toxicant concentration in air of residential area is: CO2: 0.04mg/m3; H2S: 0.01mg/m3; NH3: 0.2mg/m3. This two standards present in Table 7-3. 3) Ensure that appropriately sized collection and/or treatment system for wastewater from livestock confinement buildings is provided. 4) Strictly control collection and transport of manure procedures to prevent and minimize pipe leakage and leakage from trucks. 5) Include tree planting around the facilities to absorb/reduce dispersion of volatile and toxic gases, dust and odors. Table 7-3 Ambient air quality standard mg/m3 Value Limit Standare Hour average Day average NO2 Ambient air quality 0.24 0.12 SO2 standard(GB3095-1996— 0.50 0.15 PM10 2000 amend part) Class / 0.15 NH3 Hygienic Standards for the 0.20 CO Design of Industrial 0.04 2 Maximum permission EnterprisesTJ36- concentration every time 79Maximum permission H S monitoring 0.01 2 concentration of bad matter in living site

Noise and vectors (flies, mosquitoes, rodents)

61 Impact Assessment: Activities of vehicles, trucks during operation can cause noise. Lagoon in general and manure lagoon in particular are ideal areas for proliferation of flies and mosquitoes. Mitigation measures: Standards of noise at boundary of industrial enterprisesGB12348-90applied for limiting noise levels must be met. The standard presents in Table 7-4. Spraying of chemicals to exterminate mosquitoes and, flies is recommended.

Table 7-4 Standards of noise at boundary of industrial enterprises GB12348ü90 dB(A) Applying region level Day Night Residentialculture and 1 55 45 educationdepartmententerprise units concentrate areas Residentialbusiness and industry complex 2 60 50 areaplanning shopping centre Planning industry areaindustry concentration zone 3 65 55 Two sides of main traffic road 4 70 55

Soil pollution Impact Assessment: There are potential risks that manure collection activities, leakage from manure transport pipes, and leakage and losses from manure hauling trucks can potentially contaminate soil resources. Another source of soil pollution is application of effluent from lagoon on cropland. In case of excessive application, or if manure is applied on saturated soils and high rates can create a condition in which more nitrogen and phosphorous are being applied than is being used by the crop causing nitrogen losses, vegetative overgrowth of agricultural crops, causing crop lodging and delay in seed development/seed filling, etc. Soil pollution by heavy metals is also an issue that should be carefully considered. Addition of soluble salts that originate from animal manure could potentially cause salinization, although this should not be a major issue in Guangdong due to high and regular incidence of rainfall. Mitigation measures: 1) Quantity, timing, and timing of land application of liquid and solid manure should be carefully correlated with inherent soil characteristics (soil texture, cation exchange capacity, soil mineralogy, etc) and climatic condition to ensure that over application of nutrient does not occur to cause soil toxicity/ nutrient overload. 2) Monitor soil nutrient levels, determine nutrient and other needs of each soil type, and measure nutritional characteristic of effluents to ensure that the impact of land application of manure is advantageous to planted crops. 3) It is necessary to design nutrient management strategies to provide the crops with the appropriate amount of nutrients that is needed by plants while minimizing the

62 amount of soluble nutrients that escape from the root zone through optimum application of chemical and organic (manure) fertilizers. Effluents from lagoon must be strictly monitored (sampled and analyzed for nutrients and periodically for heavy metals) and appropriate quantities are determined to provide appropriate nutrient levels to satisfy plant needs before applying the effluent on croplands. Fauna and Flora Impact Assessment: The proposed project, if successfully implemented, should improve the quality and may increase the carrying capacity of the cropland. If the quality of lagoon effluent is controlled, improvement of cropland should increase productivity and even quality of harvest. Planting trees not only will increase the number of plants, but will also protect the fauna biodiversity within the project area by providing shelter and shade. Lagoons have a very high potential to become suitable habitats for migrating waterfowls, breeding fish, and for establishment of hydrophilic plants. This should not only increases biodiversity in the area but also contribute to improving quality of the lagoons.

Mitigation Measure: A well designed, planned and implemented project is a prerequisite condition. 1) Planting trees around the ponds, especially down wind of the residential areas is recommended to reduce odor and increase aesthetic appearance of the project. 2) Study and identify appropriate trees, commercial plants, and crops that are better suited for application of liquid manure (effluent) and promote their use within project areas. Landscape Impact assessment: Normally, manure treatment lagoons are not aesthetically appealing.. However, considering the potential positive impacts and environmental benefits of reduced nutrient load of water bodies, it will have a much better aesthetic appeal than the present condition. Mitigation measures: 1) It is proposed to plant trees around the lagoon, especially between the lagoon and residential areas. 2) Consider potential for development of aquatic plants around the perimeter of the lagoons, if technically possible. Land use Impact Assessment: Construction of a lagoon in project site will take a relatively large productive area, especially in Guangdong Province where land use is very intensive with development of urbanization and urban construction. The areas for construction of lagoons are not finalized to date and will be determined during the first year of implementation. Therefore, determination of benefit/loss of land use change is not appropriate at this time. However, as was mentioned above, most likely croplands will possibly be used

63 that could potentially cause involuntary resettlement, some partial land resettlement. The loss/benefit assessment of land use change can only be determined after location of lagoons are identified through review of land quality, type of cropland to be used, etc. Mitigation Measure: No significant mitigation measure is recommended. The social assessment team has prepared an involuntary resettlement plan for such cases. Impacts on human health Impact Assessment: In general, the project, if successfully implemented, should have positive impact on public health through reduction of non-point sources of pollutants and pathogens, not only in the waterways, but also in the open drainage ways within residential areas. However, there is a potential for secondary impacts on human health through primarily adverse impacts on air pollution. Operation workers may potentially be in danger of being directly impacted by toxic gases and odor. Problems of disease vectors such as flies, mosquitoes, rodents, pathogens, bacteria and other micro- organisms should be considered. These could lead to some respiration or digestion diseases or other dangerous diseases. Mitigation measures: The measures provided to mitigate air, water and soil pollution if successfully conducted could minimize negative impacts on human health. 7.3.2 Biogas production As for lagooning, the main objective of biogas production from livestock manure is to reduce adverse impacts of livestock manure on the environment. However, unlike a lagoon, enclosed anaerobic digestion systems for biogas production are not subject to pronounced influences of the weather, making effluents from digesters more stable and uniform than effluents from anaerobic lagoons. Additionally, odors are controlled and, if implemented correctly and there is no gas leakage, greenhouse gases are not produced since produced methane gases are burned prior to release into the atmosphere. Anaerobic digestion processes result in source strength reduction by converting incoming organic matter to methane, carbon dioxide and small amounts of microbial biomass; pathogens and weed seeds are destroyed, and odors are reduced. At the same time, single or centralized biogas reactors supply additional source of fuel for the neighborhood. If successfully implemented and as long as there are needs for the produced gases, environmental benefits of biogas system are positive. In addition biogas system does not effectively reduce the nutrient load of the effluent to acceptable levels to allow release of the effluent to the water bodies. The potential negative environmental impacts and risks of biogas production system include: Water quality Impact Assessment: Liquid in biogas pits have high content of nutrients (nitrogen and phosphorous) and can be potential source of water pollution if it is purposefully discharged to water bodies, or leak to shallow groundwater. Draining of biogas tank effluent to water bodies is the result of poor system operation, causing an excess amount of water in the pits. This is concluded from the field to project area. In fact, most households in the

64 visited farm use large quantities of water for washing breeding facilities and livestock. Over use of wash water dilute the manure concentration in biogas pit over the desired 2:1 manure: water ratio required for efficient operation of a standard biogas pit. Direct discharge of wash water from breeding facilities to water bodies also causes nutrient loading of surface and groundwater resources and causes non-point source pollution of surface and ground water resources. Poor construction of biogas pits could also allow for leakage of nutrient rich effluent to shallow groundwater resources and surface waters by through flow. Transportation of livestock manure to centralised biogas plants can also cause soil and water pollution if transport regulations are not fully enforced and/or if mechanical problems with transport vehicles occur. Mitigation Measures: 1) Technical and management principles for biogas pit design and operation must be strictly followed. 2) Improve extension capacity and provide training/awareness building in areas of manure use as crop nutrient and health and environmental impact of discharge of effluent into water bodies. 3) Effluent from a digester should be retained in a holding pond and used either as recycled flush water or for irrigation. 4) A centralized pre-treatment plant for wastewater from breeding facilities is recommended in case its available amount is bigger than demand of using it. Air quality Impact assessment: In case biogas reactors gas collection systems are not working properly, gases can escape to the atmosphere and cause air pollution (toxic gases and odor) as well as greenhouse effect (CO2, CH4). Manure transportation from breeding facilities to the centralized biogas plant by by trucks can be a source of dust and unfavorable odor since toxic gases can release naturally from transport vehicles that do not meet regulations. Risk of biogas pit explosion due to mistakes or technical/operational problems, especially in hot weather condition, is also a major environmental concern. Mitigation measures: 1) Technical and managerial principles of biogas pit design and operation must be followed strictly. 2) Provide training/awareness building for pig farmers on the potential environmental risks of poor operation of biogas tanks. 3) Prepare monitoring programs with regard to air quality within proposed project areas, especially at and around biogas pit site. Emission limits of air pollutants of Guangdong (DB44/27-2001) and Hygienic Standards for the Design of Industrial Enterprises (TJ36-79)- … must be followed. Soil pollution Impact assessment: Wastewater from cleaning of breeding facilities or from biogas pits if applied intensively on cropland can cause increase in soil nutrient load to toxic levels.

65 Nutrient overload can not only increase the potential for leaching of nutrients into groundwater, but could also increase the nutrient content of the soil, especially nitrogen to levels that can be toxic to plants. In the case of grain crops such as rice, high nitrogen can also promote vegetative growth, delays seed formation and cause lodging and significant yield loss. Waste sludge and wastes in biogas pit, if applied improperly on croplands, can also pollute the soil. Mitigation measures: 1) Timing of application and quantity of effluent to be used on crops should be accurately determined before any application of biogas effluent on soils. The amount of effluent that can be applied must be calculated based on crop nutrient needs at different growth stages and actual nutrient availability of the soil to prevent soil pollution and loss of crop yield. 2) Waste sludge and wastes from biogas pits must be disposed properly, either by disposal in sanitary landfills or pre-treated with solidification method before land filled or used for other purposes. Flora and Fauna and Nature Reserves Impact Assessment: If applied properly, effluents from breeding facilities and biogas pits will improve productivity and quality of vegetation, contributing to flourishing of flora within the area. However, improper or intensive application of effluents can have adverse impact on biodiversity and will promote increase in plants that require higher nitrogen levels and reduce the other genera such as Leguminacea. Water, soil and air pollution can also cause reduction in flora biodiversity. The proposed project appears to be neutral with regard to fauna biodiversity. However, potentially contagious animal diseases caused by dangerous pathogens, bacteria, and/or viruses can be spread in the wild through application of untreated effluent and can cause proliferation of diseases in the wild and cause significant impact on wildlife. Inappropriate over-application of effluent could also cause disappearance of some useful insects and appearance of harmful insects in agricultural fields that can also cause increase in plant diseases and yield reduction. Mitigation Measures: A well designed, planned and operated project is prerequisite condition. 1) Plants that can sustain higher levels of effluent application (high N and P requirement) should be identified and promoted for the areas close to the biogas facilities. Establishment of young trees around centralized biogas plants should be promoted. 2) Prepare a plan for early identification and control of potentially contagious diseases that might establish within project areas.. 3) Extra care must be taken to ensure effluent is treated properly and if there are outbreak of animal disease within project area, application of effluent should be stopped and should only be resumed after clearance is provided by the appropriate line agencies. Aesthetics Impact assessment:

66 Aesthetically, the centralized biogas pits are not very appealing on their own. However, their benefits and reduction of unsightly and unhealthy open drains and manure ponds surely outweigh their look. Mitigation measures: Planting of trees around the centralized biogas pits should be encouraged that will not only improve aesthetics, but can also reduce dour levels. Land use Impact Assessment: Construction of centralized biogas pits and installation of manure collection pipe system (if any) in project site will occupy some potentially productive land within the farms. The final locations of the manure treatment plants are not yet finalized. Therefore, it is not possible to determine the benefit/loss of land use change at this time. Mitigation Measure: No mitigation measure is recommended. 7.3.3. Soil application When main purpose of using livestock manure is to fertilize fields, manure should be treated to remove pathogens and weed seeds before application to land. One of the potential pre-treatment processes that manure can go through before land application is composting. The main impacts of composting process as well as land application of manure are briefly described: Water pollution Impact assessment: 1) During composting process, especially during fermentation phase significant amount of wastewater is created. Maintenance activities including cleaning floors, equipments, machineries, etc can also add to possibility of water pollution. Water pollution potential from manure collection from breeding facilities should also be considered. Eutrophication is one of the main impacts of release of wastewater rich in nutrients such as nitrogen and phosphorous. It is important to ensure that effluent from wastewater treatment system meets Discharge Standard of Pollutants for Livestock and Poultry Breeding (GB18596-2001) before release to surface water bodies. The standard presents in Appendix 4. Land application of manure should follow strict rules to ensure that manure is applied at the right times during the growing season and at the right quantities so that crops receive appropriate quantities of nutrient at the right stages of growth. Haphazard and indiscriminant application of manure will not only cause nutrient overloading of the soil and leaching of nutrient into the groundwater, it can also cause serious injuries to the crops and reduce the crop yield and even burn the crops in extreme circumstances. Mitigation measures: 2) Appropriate, effective, and adaptable composting and manure application technologies should be used, and management alternatives should be considered and planned carefully to achieve appropriate and environmentally acceptable nutrient load in discharge water.

67 3) It is necessary to design and build a collection and/or treatment system for wastewater from composting process. 4) Quantity and timing of liquid and solid manure application to agricultural land should be established for different crops in different soil types and climatic conditions based an crop’s physiological characteristics and nutrient needs, inherent nutrient levels within the soil, and cropping patterns (previous and following crops). Air pollution Impact assessment: 4) Fermentation of livestock manure is notable source of air pollution since this process potentially produces CO2, CH4, and other volatile organic gases, causing increase in nuisance odors. Odors can also be generated during other phases of composting process, especially during collection and separation and before fermentation. Screening process is also a potential source for increase of dust and especially fine organic particulates. Dust can also be generated from collection and transportation activities. According to Chinese laws, to prevent or minimize toxic gas emission during composting process in the composting plant, Emission limits of air pollutants of Guangdong (DB44/27-2001) and Hygienic Standards for the Design of Industrial Enterprises (TJ36-79)- … must be followed. Manure application on land, especially if it is not immediately incorporated into the soil (ploughed in) can cause significant nitrogen loss to atmosphere due to ammonification process, causing both atmospheric and odor pollution and in extreme cases eye irritation Mitigation measures: 1) Ventilation systems should be installed in composting plant to reduce the impacts of toxic gases and odors to workers and surrounding environment. 2) Strictly control manure collection and transport to prevent or minimize pipe leakage and scatter from trucks. 3) Plant trees to absorb toxic gases, dust and odors. 4) Incorporate the manure into the soil by ploughing it into the soil immediately after application of manure to prevent gaseous losses of nutrient to the atmosphere. Noise Impact assessment: Activities of vehicles, trucks and composting equipment such as separators, screeners, conveyors, and packaging section during operation phase can cause noise. Chinese Standards of noise at boundary of industrial enterprises GB12348-90are required to be met. Mitigation measures: The composting plant should be located at appropriate distance from the residential areas to meet Chinese limits of noise level (GB12348-90). Workers who are working within the plant should be supplied with protective gears such as ear plugs to reduce potential harmful effect of long term exposure to noise. (GB12348-90) is present in Table 7-4.

68 Soil pollution Impact Assessment: Livestock manure has long been regarded as beneficial material and has been used for centuries as an effective nutrient source for higher crops. It provides an organic matter to soil that improves its physical properties (improved soil structure). Manure helps to stabilize soil aggregates and prevent soil erosion. However, if manure is applied at excessive levels, it can cause soil toxicity due to nutrient overloading and disturbance of nutrient balence within the soil. Impacts of manure on soil include: ¾ Excessive levels of nutrients such as nitrogen, phosphorous, potassium, and some micronutrients; ¾ Soil pollution from heavy metals (especially Cu and Zn); ¾ Potential increase in soil salinity (soluble salts mainly excreted from animal urine) ¾ Increase in level of number of cations and anions included in urine such as + 2+ + 2+ - 2- Na , Ca , K , Mg , Cl , and SO4 ). Mitigation measures: 1) Manure should be applied to land at rate determined by the soil, climate, crop physiological needs, etc. The implementation is that nutrients should be applied in amounts needed by crop without adverse effects on either soil or water (surface and ground). 2) Pre-treatment technology (composting) and composting process should strictly be followed to produce a product that has appropriate component of nutrients and organic matters and minimal quantity of weed seeds and pathogens; and 3) Manure (compost) samples should be regularly collected and analysed in order to avoid over-application of nutrient and/or causing nutrient imbalance that could detrimentally affect crop yields. Fauna and Flora Impact Assessment: Like lagooning and biogas production, soil application methodology, if successfully implemented, should improve the soil quality and increase the productivity and quality of crops. Manure application of cropland should be flora neutral, but should improve biodiversity by improving soil fauna population.

Mitigation Measure: A well designed, planned and implemented project is prerequisite condition. Planting young trees as much as possible is always recommended. Studies should be conducted to determine higher plants best suited for liquid and soild manure application to be promoted for planting within project area. Landscape Impact assessment:

69 Simply, appearance of a pre-treatment facility in the proposed project area would reduce the beauty of landscape. However, if comparing to ultimate expected benefits of the project, this option will be certainly better than present situation. Mitigation measures: Planting trees around the composting plant to reduce its visibility from residential areas and to also reduce odor problems.. Land use Impact Assessment: Construction of a lagoon/central biogas/waste water treatment facility in project site will occupy a relatively large area of farm land. Construction of composting plant and installation of manure collection pipe system (if any) in project site will occupy some potentially productive land within the farm. The final locations of the manure treatment plants are not yet finalized. Therefore, it is not possible to determine the benefit/loss of land use change at this time. Mitigation Measure: No significant mitigation measure is recommended.

70 8 Environmental Management Plan The experiences on EIA around the world has shown that even if mitigation and monitoring plans proposed in the EIA are clearly described, the mitigation and monitoring plans may be ignored without effective and competent monitoring and enforcement procedures to supervise and ensure the implementation. Therefore, it is recommended that project proponent develop an enforceable plan, the Environmental Management Plan (EMP), prior to commencement of the project activities as part of the overall project management operation. The EMP identifies the responsibilities of each organization involved in the implementation of EMP and the proposed mitigation and monitoring activities during design, construction/implementation, and operation. For projects where International Finance Agencies (IFAs) participate in project funding, the Loan Agreement guarantees that the monies needed for establishing and operating the EMP would be made available as an integral part of the project budget (not as a kind of “add on”). In the early 1990s, the structure of the EIA report was modified to include a separate chapter on Environmental Management Plan (EMP). The EMP developed in the project EIA includes all mitigation and monitoring requirements specified in the EIA. As soon as the feasibility study of the project including EIA is approved, an implementing institution should be established as a part of the overall PMO structure and should be responsible for implementation of project mitigation and monitoring activities. The project’s influence on environment will occur during the construction/implementation and operation periods. In Chapter 7, all the issues affecting the environment were identified and analyzed. Corresponding mitigation measures were proposed. In this chapter the environmental monitoring plan and the corresponding responsibility are identified. This orderly identification, assessment, and presentation of mitigation measures ensures that no important issues are overlooked and that negative impacts are prevented or reduced to minimum. The project involves many environmental issues, however, the impact of the project to local environment can be effectively controlled if the following major environmental issues are monitored and controlled. 8.1 Implementation Organizations and Responsibilities As indicated in Fig.2-1 of Chapter 2, in China, project environmental management within each concerned ministry and commission is organized and carried out by their respective environmental protection department under the supervision of SEPA and local EPBs. The Ministry of Agriculture (MOA), one of the concerned ministries, is one of the organizations that have responsibilities for protection and management of environment within the areas of influence of the project. The institution that has direct responsibility is the Ecological Environment Division of the Department of Science, Technology and Education of the Ministry of Agriculture. Its main responsibilities are: (1) to ensure that the project adhere with the relevant environmental protection laws, regulations and standard of China, and (2) to supervise environment protection in the agricultural sector of the country. SEPA provides supervision and monitoring to the work of MOA. Other organizations such as the Livestock Bureaus and Animal Husbandry Bureaus in Guangdong have similar departments and personnel for environmental protection who are also responsible for

71 supervision and monitoring of the project impact under the overall supervision of the EPB. Guangdong has environment monitoring stations (EMS) at various governmental levels responsible for monitoring the environmental impact of various development activities within their respective jurisdictional boundaries, and for compiling the annual environmental quality reports. The responsibility of these organizations include: (1) reporting to SEPA any changes in the quality of natural environment, (2) environmental pollution control; (3) progress achieved in environmental protection; and (4) handling application for discharge of important pollution source. Environment monitoring stations at city and county levels are responsible for monitoring changes of environmental quality of atmosphere, water, noise and natural environment and for reporting to the provincial environmental monitoring station. Based on above mentioned responsibilities of EMS, PMO intends to sign contracts with either one of the EMS, or with other qualified institutes or labs for environmental monitoring. In addition, the respective PMO should provide necessary organization and manpower to ensure effective and smooth implementation of the environmental requirements of the project. The following chapter discusses the details of implementing institutions and the proposed environmental management plan (EMP), its manpower and institutional requirements. 8.1.1 Implementation Organizations At project feasibility study level, the EIA prepared by the project proponents has to be reviewed and approved by concerned environmental authority and the WB safeguard group. However, during project implementation/construction and operation phases of the project, implementation of the environment management plan is the responsibility of the PMO. Guangdong EPB should be requested to collect the required data, monitoring of the implementation of the EMP and checking whether the mitigation measures of each subcomponent of the project are successfully undertaken. The respective county EPBs should be requested by the respective PMOs to supervise and inspect subcomponents of the project with potential environmental impact following the proposed EMP and the relevant environment protection laws of China. The project areas will include some farms in Boluo counties of Guangdong Province. In order to ensure smooth implementation of the project with minimum negative impact on environment, the following EMP is formulated and must be followed by the project proponents in its entirety. The EMP must be considered as a part and parcel of the project and must be budgeted as a project item in the financial feasibility report and the project implementation plan. In order to ensure successful implementation of the proposed EMP and in line with relevant national environmental regulations, PMO should appoint an officer, on a full or part-time basis, who will have full responsibility for the successful implementation of the activities defined in mitigation and monitoring sections of the EIA report (Chapter 7) during each phase of the project implementation and at least the first five years of project implementation. The county PMOs (CPMOs) should also designate one of their staff to be trained by the project to take the responsibility of ensuring the adoption of all EMP activities by the project at the county/farm level. He/she should convey the environmental issues within the project to the project implementation agencies of the PMO and the county EPBs, responsible for data collection and

72 providing technical assistance to the environmental officer. The environmental officers identified at PMOs at every level (county, municipal, province/region) are responsible for the preparation of the environment protection materials and documents related to project implementation for the review of SEPA, the World Bank and respective EPBs at various levels. During operation phase, each CPMO will assist the PMO with implementing the environmental monitoring program and other work included in the environmental management plan. However, the ultimate responsibility for ensuring that all activities identified in the EMP are implemented rest on shoulders of the respective PMOs and they must ensure smooth flow of required environmental reports/data from the counties to the provincial/regional office. The environmental management and organizations during implementation and operation phases are diagrammed in Fig.8-1 and Fig. 8-2, respectively.

PLG

PMO

Environmental Officer (PMO)

Design Unit County PMOs designated Local governmental institutions environmental Supervisors including, EPBs, Agricultural Bureaus, etc.

Environmental monitoring units

Figure 8-1 Environmental Management Organization during Construction Stage

PLG

PPMO

CPMOs (1 person, each)

Local governmental institutions including EMS, Provincial and County EPBs, ettc.

Figure 8-2 Environmental Management Organization during Operation Stage

73 74 8.1.2 Role of PMO and Environmental Monitors As was discussed in 8.1.1, implementation of EMP will be the responsibility of PMOs at various levels. They are responsible for ensuring the smooth implementation of the mitigation measures and the monitoring plan as is detailed in the environmental assessment report. Their major tasks include: a. Review and implementation of mitigation and monitoring activities with comments on the activities as needed to obtain minimum acceptable environmental performance level in the overall project; b. Regularly check implementation of pollution control measures in project sub- components that might have pollution problems such as manure management technology (lagoon, biogas plant and manure application on soil) development. Report those facilities that are not operating properly or are discharging above SEPA’s environmental discharge standard and report such violations to local EPBs; c. Recommending, gaining approval for and carrying out any special studies, which are believed necessary for reaching the minimum acceptable environmental performance; d. In close cooperation with the project design and implementation teams, make sure that the relevant mitigation measures contained in the EMP are reflected in the final project plans and that necessary conditions for project monitoring are in place; e. Provision of necessary training of staff of project management offices and implementers of project subcomponent on environmental issues and environmental inspection to improve the institutional capacity of county and township personnel in implementation of EMP activities; f. Supervise the implementation of the environmental protection measures as specified in the environmental mitigation plan; g. Provide written guidelines whenever gaps in environmental performance are found and to take corrective measures; h. Perform emergency response plans during environmental emergency conditions and report any environmental accident/mishaps to the PMO and local EPBs in a timely manner; i. Implement the environmental monitoring plan including engaging and supervising monitoring institutions and ensure that all sampling activities as defined in the monitoring plan is completed on a timely manner; j. Prepare periodic reports on environmental performance of the project’s implementation and operation to be availed to relevant environmental administrative departments/Bureaus and the World Bank; k. Deal with the complaints concerning the environmental aspects and accept the supervision of the environmental protection departments; l. Arrange for the visits of the Bank Mission staff, if necessary and regulatory staff of EPB or EMS; m. Supervise environmental issues during project implementation/construction and urge construction/implementation teams to follow relevant regulations; and

75 n. Be responsible for other actions needed for implementing the EMP. 8.1.3 Supervision Organization Under the guidance of SEPA, Guangdong EPB are the administrative departments for environmental protection. They are responsible for the environmental management and supervision within the jurisdiction of the region and province. The local EPBs at municipal and county levels are the administrative departments of the corresponding local government’s environmental protection under respective regional and provincial governments and are responsible for the environmental management and supervision within the jurisdiction of the local government. They will be responsible for supervision of EMP implementation within their respective local government jurisdiction. EPBs and EMS offices at provincial, municipal, and county levels should cooperate closely with clearly defined responsibilities and accomplish monitoring work of the project. Under the jurisdiction of each Provincial/regional EPB, a Provincial/regional Central Environmental Monitoring Station is established that is responsible for the monitoring of environmental quality within the jurisdiction of the province/region. The environmental protection work of this project will be carried out under the supervision of SEPA, provincial/regional EPBs and local EPBs within the project areas. The environmental supervision plan is summarized in Table 8-1. 8.1.4 Environmental Management Plan In order to ensure the effective implementation of the proposed environmental mitigation measures for the project, an environment management plan has been formulated and listed in Table 8-2.

76 Table 8-1 Environment Supervision Plan, LWMEAP, China Stage Organization Monitoring items Monitoring Objectives Feasibility 1. Review EIA 1. Guarantee a complete environmental assessment, and appropriate subject Study 2. Review EMP draft identification, emphasize the key points. 2. Make sure it reflects the possible, significant potential problems which might be produced by this project 3.Guarantee a concrete practicable action plan of mitigation measures Design & Guangdong 1. Review the preliminary 1. Strictly execute EMP Implementation EPB, SEPA, design for environmental 2. Ensure that all national environmental laws and regulations with regards to WB protection and EMP project construction/implementation are considered. SEPA, WB 2. Check whether 3. Secure that sufficient environmental protection investment is in place investment for environment protection is in place. Guangdong 3. Check selection of 4. Ensure that Pig production needs to be the dominant cause of water EPB project areas. pollution in the area. 5. Ensure that the level of underground water drainage is minimal in the areas: most of the collected rainwater and field drainage leave the study area by surface water. 6. Ensure that the project areas are far away from the nature reserves buffer and core areas, and make sure that the project will not block the migration route of wild animals. 4. Supervise dust and noise 7. Take recommended measures in EMP to dust and noise pollution. pollution, if found to be an 8. Ensure that construction teams follow EMP, and relevant state and local issue. laws and regulations. 9. If noise is found as an environmental nuisance, enforce proposed construction times according to EMP.

77 Stage Organization Monitoring items Monitoring Objectives 5. Inspect whether there 10. Protect cultural relics are underground cultural relics. 6. Inspect the discharge 11. Ensure that solid waste and raw sewage are disposed according to relevant and treatment of daily national and local regulations. Ensure that surface and groundwater are not sewage and waste from contaminated. larger construction site such as lagoon and biogas pond 7. Check whether 12. Ensure erosion control measures according to EMP, national and local construction will cause laws are in place. accelerated soil erosion. Operation Guangdong 1.Inspect implementation 1. Protect the environment; minimize the environmental impact during EPB Local of EMP in operation stage operation phase. EPBs 2.Check implementation of 2. Guarantee the solid and liquid manure disposal meet the standard. monitoring plan 3. If necessary, review and amend the EMP to overcome unforeseen impacts. 3. Verify whether it is 5. Make sure national laws and regulations with regards to animal numbers is necessary to take further enforced. environmental protection measures for unforeseen environmental problem. 4. Ensure that surface watergroundwatersoil management/improvement measures are implemented.

78 Stage Organization Monitoring items Monitoring Objectives Guangdong 1. Check if pollutants 1. Enforce the national regulations with regards to discharge of pollutants, EPB, Local discharge meets the especially sewage discharge from all manure management facilities of EPBs national standards. breedpig farms and runoff in project area. 2. Check if project is 2. Ensure that project will not cause any additional degradation of natural soil. causing accelerated soil Report any wrong doing to appropriate regulatory agencies. erosion. 3. Ensure that manure application on soil meet the practical needs of crop and 3. Check if manure plant, and nutrient balance of soil, no fertilization on cropland application on soil meets overaboundance.. the needs of crop and plant and nutrient balance of soil.

79 Table 8-2 Environment Management Plan for LWMEAP, China Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency A. Design Phase 1. Optimize project design and plan to minimize its potential negative environmental impacts. Guangdong 2. Project subcomponents should be planned and designed to avoid environmental Guangdong 1.The Project PMO, Design sensitive areas like wildlife habitats, natural and cultural relics, and to reasonably PMO teams arrange construction schedule to minimize land occupancy and reduce land occupancy time. 1. If construction of limited access roads is required, they should be designed to minimize land occupancy and avoid/minimize damage to vegetation. Guangdong 2. Land Use Design Units 2. Construction of biogas plant and aerobic and anaerobic should be designed to use as PMO little land as possible. B. Implementation/construction phase 1. After completion of construction work, vegetative cover should be planted as soon as possible to prevent wind and water erosion, as well as runoff. 2. The construction of lagoons, biogas plants, field for depositing manure and related facilities should employ restrict soil erosion control measures during construction to Guangdong prevent soil erosion and increased sediment load in nearby river/water bodies. As Construction 1. Soil Erosion PMO, County much as possible, the excavated material should be reused in construction, if cannot be Teams PMOs used in construction, should be disposed off properly according to national and provincial environmental pollution laws, such as piled in designated areas and be removed to dump sites. If no assigned dumpsites are available they could be compacted layer-by-layer and protected by surrounding retaining walls, and then be timely

80 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency covered with vegetation.

1. If there are residential areas within 300m of the construction site, construction activities are forbidden at 22:00 to 6:00 at night, 12:00 to 14:00 in daytime. 2. The access roads should be selected away from such sensitive locations as schools, residences and hospitals. If they are within 50 meters of sensitive areas, transportation should be banned during night hours. 3. When the construction site is close to school, no construction work with heavy noise machines should be arranged at school time; when the construction site is close to Construction 2. Noise County PMO densely populated residences, construction work with machinery that produce high Teams noise levels should not be arranged at nighttime. In case that the above construction work has to be proceeded, consultation must be made with the residents who may be impacted or proper compensation must be paid. To reduce the noise pollution of construction machineries, mobile noise isolation can be used. 4. The construction operator’s work time should be arranged in accordance with the labor hygiene standard, and personal protection measures such as wearing earplugs and helmets, etc. should be provided to the operators. 1. Mixing equipment should be placed at least 300 meters from residential areas, hospitals and schools. Sealing, vibration reducing and dust absorbing measures should Construction be adopted. 3. Air quality Team, County County PMO 2. According to national labor laws, labor protection measures should be provided to PMO the operators of the construction machineries, such as protective glasses and masks. 3. Water should be sprayed during dry, dusty days on the construction sites and related

81 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency roads to prevent dust. 1. Inform contractors and construction workers on recognition of cultural relics and County importance of protecting them. Cultural 4. Natural and Guangdong 2. During construction, if cultural relics are found, construction should stop, the Relics Bureau cultural relics PMO construction supervisor should protect the site, and concerned department should be County PMO immediately notified to handle the find. 5. Minority Construction Guangdong 1. If present, respect the living style and traditional customs of minority nationalities. Nationalities Team PMO C. Operation phase

Lagoon System 1. Appropriate and effective technology and management alternatives must carefully be considered and planned in order to achieve required levels of environmental acceptability. 2. Design and build a collection and/or treatment system for wastewater from livestock confinement buildings. 3. Lagoon must be designed strictly according to technical criteria, to prevent waste water percolation into groundwater. County, Guangdong 1. Water pollution 4. Except during big storm events that can potentially cause structural breakdown, it is Provincial and PMO not permitted to discharge lagoon effluent with high nutrient load to be discharged into regional EMS surface water bodies at any times. Under such special storm conditions, dilution effect minimizes the negative effects of the discharged effluent from the lagoon on natural resources. In case lagoon effluent must be discharged for acceptable reasons, relevant discharge standard of pollutants for livestock and poultry breeding (GB18596-2001) must be met. According to this standard, maximal limits of daily average discharge concentration for the main parameters as follows: COD: 400 mg/l; BOD5:150 mg/l;

82 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency SS: 200 mg/l; NH3-N: 80 mg/l; TP: 8 mg/l; coliform:10000/ml; ascarid egg: 2/l. 5. Ensure that lagoon dikes are stable and will not fail under even the most extreme weather conditions.

2. Acoustics and 1. Standards of noise at boundary of industrial enterprisesGB12348-90applied for vectors (flies, limiting noise levels must be met. mosquitoes, 2. Spraying of chemicals to exterminate mosquitoes and, flies is recommended. rodents) 1. Manure management options that reduce gas emissions and odor levels should be favored. For example, appropriate collection frequency can reduce odor dispersion in livestock confinement buildings. Lagoons can be covered and gas be collected for biogas development, thereby reducing odors. 2. Control operation process of lagoons and prevent or minimize toxic gas emission, according to Emission limits of air pollutants of Guangdong (DB44/27-2001), the maximum limits of NOx is: 0.12 mg/m3. Others according to Hygienic Standards for the Design of Industrial Enterprises (TJ36-79)--- The maximum permitted toxicant County, Guangdong 3. Air pollution concentration in air of residential area is: CO2: 0.04mg/m3; H2S: 0.01mg/m3; NH3: Provincial and PMO 0.2mg/m3. regional EMS 3. Ensure that appropriately sized collection and/or treatment system for wastewater from livestock confinement buildings is provided. 4. Strictly control collection and transport of manure procedures to prevent and minimize pipe leakage and leakage from trucks. 5. Include tree planting around the facilities to absorb/reduce dispersion of volatile and toxic gases, dust and odors.

83 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency 1. Quantity, timing, and timing of land application of liquid and solid manure should be carefully correlated with inherent soil characteristics (soil texture, cation exchange capacity, soil mineralogy, etc) and climatic condition to ensure that over application of nutrient does not occur to cause soil toxicity/ nutrient overload. 2. Monitor soil nutrient levels, determine nutrient and other needs of each soil type, and measure nutritional characteristic of effluents to ensure that the impact of land application of manure is advantageous to planted crops. County, Guangdong 4.Soil pollution 3. It is necessary to design nutrient management strategies to provide the crops with the Provincial and PMO appropriate amount of nutrients that is needed by plants while minimizing the amount regional EMS of soluble nutrients that escape from the root zone through optimum application of chemical and organic (manure) fertilizers. Effluents from lagoon must be strictly monitored (sampled and analyzed for nutrients and periodically for heavy metals) and appropriate quantities be determined to provide appropriate nutrient levels to satisfy plant needs before applying the effluent on croplands.

1. A well designed, planned and implemented project is a prerequisite condition. 2. Planting trees around the ponds, especially down wind of the residential areas is recommended to reduce odor and increase aesthetic appearance of the project. County, Guangdong 5.Fauna and Flora 3. Study and identify appropriate trees, commercial plants, and crops that are better Provincial and PMO suited for application of liquid manure (effluent) and promote their use within project regional EMS areas.

1. It is proposed to plant trees around the lagoon and biogas pond, especially between the lagoon and residential areas. County, 6. Landscape Guangdong 2. Consider potential for development of aquatic plants around the perimeter of the Provincial and PMO lagoons, if technically possible. regional EMS

84 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency 7. Land use 1. No significant mitigation measure is recommended. The social assessment team has Guangdong County PMO change prepared an involuntary resettlement plan for such cases. PMO 1. The measures provided to mitigate air, water and soil pollution if successfully 8.Impacts on Guangdong conducted could minimize negative impacts on human health. County PMO human health PMO

Biogas production

1. Technical and management principles for biogas pit design and operation must be strictly followed. 2. Improve extension capacity and provide training/awareness building for staffers and officers in governments/PMO of all levels in areas of manure use as crop nutrient, and 1. Water pollution mitigate health and environmental impact of discharge of effluent into water bodies. 3. Effluent from a digester should be retained in a holding pond that is big enough for any special situation and used either as recycled flush water or for irrigation. 4. A centralised pre-treatment plant for wastewater from breeding facilities is recommended in case its available amount is bigger than demand of using it. 1. Technical and managerial principles of biogas pit design and operation must be followed strictly. 2. Provide training/awareness building for pig farmers on the potential environmental risks of poor operation of biogas tanks. 2. Air pollution 3. Implement monitoring programs earnestly with regard to air quality within proposed project areas, especially at and around biogas pit site. Emission limits of air pollutants of Guangdong (DB44/27-2001) and Hygienic Standards for the Design of Industrial Enterprises (TJ36-79)- … must be followed.

85 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency 1. Timing of application and quantity of effluent to be used on crops should be accurately determined before any application of biogas effluent on soils. The amount of effluent that can be applied must be calculated based on crop nutrient needs at different growth stages and actual nutrient availability of the soil to prevent soil 3. Soil pollution pollution and loss of crop yield. 2. Waste sludge and wastes from biogas pits must be disposed properly, either by disposal in sanitary landfills or pre-treated with solidification method before landfill or used for other purposes.

1. A well designed, planned and operated project is prerequisite condition. 2. Plants that can sustain higher levels of effluent application (high N and P requirement) should be identified and promoted for the areas close to the biogas facilities. Establishment of young trees around centralized biogas plants should be promoted. 4. Flora and 3. Establish a plan for early identification and control of potentially contagious diseases Fauna and Nature within project areas. Reserves 4. Extra care must be taken to ensure effluent is treated properly and if there are outbreak of animal disease within project area, application of effluent should be stopped and should only be resumed after clearance is provided by the appropriate line agencies.

It will not only improve aesthetics, but can also reduce odor levels through planting of 5. Aesthetics trees around the centralized biogas pits.

No mitigation measure is recommended. 6. Land useı

86 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency

Soil application

1. Appropriate, effective, and adaptable composting and manure application technologies should be used, and management alternatives should be considered and planned carefully to achieve appropriate and environmentally acceptable nutrient load in discharge water. 2. It is necessary to design and build a collection and/or treatment system for 1. Water pollution wastewater from composting process. 3. Quantity and timing of liquid and solid manure application to agricultural land should be established for different crops in different soil types and climatic conditions based an crop’s physiological characteristics and nutrient needs, inherent nutrient levels within the soil, and cropping patterns (previous and following crops).

1. Ventilation systems should be installed in composting plant to reduce the impacts of toxic gases and odors to workers and surrounding environment. 2. Strictly control manure collection and transport to prevent or minimize pipe leakage and scatter from trucks. 2. Air pollution 3. Plant trees to absorb toxic gases, dust and odors. 4. Incorporate the manure into the soil by ploughing it into the soil immediately after application of manure to prevent gaseous losses of nutrient to the atmosphere.

1. The composting plant should be located at appropriate distance from the residential areas to meet Chinese limits of noise level (GB12348-90). 3. Noise 2. Workers who are working within the plant should be supplied with protective gears such as ear plugs to reduce potential harmful effect of long term exposure to noise.

87 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency 1. Manure should be applied to land at rate determined by the soil, climate, crop physiological needs, etc. The implementation is that nutrients should be applied in amounts needed by crop without adverse effects on either soil or water (surface and ground). 2.Pre-treatment technology (composting) can make manure has appropriate component 4. Soil pollution of nutrients and organic matters and minimal quantity of weed seeds and pathogens; and 3. Manager should collected and analyzed Manure (compost) samples regularly in order to avoid over-application of nutrient and/or causing nutrient imbalance that could detrimentally affect crop yields.

1. A well designed, planned and implemented project is prerequisite condition. 5. Fauna and 2. Planting young trees as much as possible is always recommended. Studies should be Flora conducted to determine higher plants best suited for liquid and solid manure application to be promoted for planting within project area. Planting trees around the composting plant to reduce its visibility from residential areas 6. Landscape and to also reduce odor problems..

7. Land useı No significant mitigation measure is recommended.

D. Environment Monitoring

Guangdong 1. Surface Water Implementation/construction phase (baseline data) PMO

88 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency Implementation/operation phase: + — 1. Monitoring items: pH, TKN, TP, CODMn, BOD5, NH3 -N, NO3 N, total solids (TS), volumetric flow, fecal coliforms 2. Monitoring frequency: 4 times every year during the implementation periodone in the dry period, one during the first heavy rain, one in the wettest month and one at the end of the wet period Local 3. Monitoring periods: 1-2 days. EMS/PEMS 4. Location to be monitored: At each site a minimum of 3 benchmarks will be established along the main river/surface body that leaves the project area; one upstream (baseline nutrient load of the river), one in midstream, indicating the average nutrient load within project area, and one downstream of the project to determine the impact of the project manure management activities on the surface water quality. Implementation/construction phase (baseline data):

Implementation/operation phase: 1. Monitoring items: pH, total P, total N, NO3-N, NH4-N, COD, BOD5, fecal coliforms Guangdong 2. Monitoring frequency: 4 times every year during the 5 years implementation period Local 2. Groundwater PMO one in the dry period, one during the first heavy rain, one in the wettest month and EMS/PEMS one at the end of the wet period 3. Monitoring periods: 1 day 4. Location to be monitored: include three transects of wells (piezometers). Each transect will consist of three piezometers at different depths, to a maximum of 6m. These piezometers will be installed up-gradient from the edge of the river/water bodies to the edge of the village or to the edge of agricultural fields.

89 Environmental Responsible Mitigation Policies and Control Measures Implementer Issues Agency Implementation/construction phase (baseline data): Local Guangdong EMS/PEMS PMO Implementation/operation phase: 1. Monitoring items: pH, EC*10-3, TKN, TP, and available P (Bray or Mehlich method). 2. Monitoring frequency: 5 times every year (2 crops) during the 5 years 3. Soil implementation and operation periods; after application and incorporation of manure during land preparation , before crop reaches the four-leaf stage, after crop harvest, at Local Guangdong four leaf stage of 2nd crop, and after harvest of 2nd crop. EMS/PEMS PMO 3. Monitoring periods: 1 day 4. In locations to be monitored, soil samples from subsoil (15-30 cm) will be collected in each agricultural field (maximum 3) with major cropping system (the same agricultural fields to be used for groundwater monitoring), using Dutch auger.

90 8.2 Environmental Monitoring Plan, Guangdong The main purpose of this section is to summarize the needs of monitoring and to prepare a sound environmental monitoring program. The main objectives of the plan are (1) to ensure that all the mitigation measures specified in the EIA will actually be carried out; (2) to evaluate the monitoring data to determine whether the environmental protection measures as proposed (including design, implementation, and operational procedures) are actually furnishing adequate environmental protections and if not, to indicate the correction measures that is needed, and (3) to ensure sustainable use of natural resources (such as water and soil) by the project. 8.2.1 Monitoring Items The monitoring program includes monitoring for each of the individual environmental issues as identified in Chapter 7. 8.2.2 Monitoring Implementer The implementer of the monitoring plan is respective PMOs at various levels According to the jurisdictional zoning, respective PMOs at various levels will undertake their monitoring responsibilities. Provincial and Boluo county EMS will carry out monitoring program for quality of surface water, groundwater and soil. Guangdong PMO should reach a contractual agreement with respective monitoring stations before project implementation. The county PMO are responsible for requesting for monitoring activities by the monitoring unit, according to the requirement of EMP and whenever the situation arises. 8.2.3 Monitoring Report System The reporting system for environment monitoring is shown in Figure 8-1. After completion of one year environmental monitoring task, the environment monitoring unit should submit the monitoring report to the PMO and world bank. Videlicet, Guangdong provincial PMO should submit annual environmental monitoring report of the project to the World Bank during project construction and operation phases. 8.2.4 implementation/construction Monitoring (Baseline data) The implementation/construction monitoring program is designed to achieve two main objectives. The first one is to check whether the mitigation measures contained in the environment assessment report have been incorporated in the final design document and in the construction contracts. The second is to assess the existing conditions, including seasonal variability of the various parameters. The proposed monitoring plan for each component is as outlined in Figure 8-3. The monitoring items and related issues can be found in table 8-2. SEPA MOA World Bank

Guangdong PMO of MOA EPB PMO of Guangdong Local EPB

Municipal/County EMS

Figure 8-3 Monitoring Report Chart, Guangdong

The monitoring of implementation/construction programs is designed to evaluate the construction activities and to ensure that they meet the established criteria, especially construction of lagoon and biogas pond. The construction of the project could bring about some potentially adverse impacts on environmental parameters including air quality, vegetation, soil erosion, acoustic environment, public health, biological resources, etc. Air Quality: Dust control methods implemented to reduce construction dust levels will be checked throughout the construction period to evaluate their effectiveness and provide the basis for additional measures (as required). Table 8-3 presents air quality monitoring program for the project areas, if found necessary.

Table 8-3 Construction Air Quality Monitoring Program Monitoring Site Item Frequency Sampling Timing Implementer Construction sites TSP Twice a 12 hours continuous The PMO is responsible for the where large year, 1 to 2 every days implementation of this program, residential area days every and will entrust the corresponding within 100m. time municipal environmental monitoring stations to undertake the monitoring tasks, as needed.

Noise: The construction noise-monitoring program is designed (see Table 8-4) to monitor the impact of construction noise on the near residents. For noise-producing construction activities far away (more than 200 m) from residential areas, this monitoring is unnecessary.

92 Table 8-4 Noise Monitoring Program During Construction Monitoring Site Monitored Frequency Monitoring period Implementer timing Environmentally-sensitive 7:00~19.00/day 10 minutes At random, if CPMO/ sites within 200 m of 22:00~6:00/night continuous required EMS construction site every time

Soil Erosion and Surface Water Sediment Loading: Soil erosion could occur at construction sites, along areas of cut and fill such as during construction of manure waste management facilities(lagoon and biogas) activities around water conveyance means (weirs, rivers, waterways, etc.). Such erosion could cause increase in river sediment load that could negatively impact aquatic flora and fauna. Respective CPMOs will be responsible to identify areas that could cause such impacts and should direct the contractor to provide adequate soil conservation measures along the slope such as hay-bale, silt fence and/or fiber mats to prevent increase in the sediment load of rivers and lakes within the project area. 8.2.5 Monitoring during Operation The environmental impacts during project operation phase will be mainly the potential pollution and the over nutrition load to surface water, groundwater and soil for effluent discharge from lagoon, biogas and composing prosess in project area related LWMEAP development above the environmental carring capacity. The main parameters that should be monitored include surface and groundwater quality. More detailed and relevant information on environment monitoring parameters, implementing agencies and responsible institutions are presented in Table 8-2. 8.2.6 Environmental Monitoring Budget An estimated budget for the implementation of the monitoring programs for project sites is listed in Table 8-5, table 8-6, and table 8-7, table 8-8. The total cost of environmental monitoring is estimated for Guangdong province. Table 8-5 Cost Estimate for water quality analyses at Guangdong Province

Number Item Unit Price in 2004 (USD) price Rmb/sample 1 pH 10 2 TKN 78 3 NO3-N 75 4 NH3-N 53 Total phosphorus 62 5 (TP) 6 BOD5 105 7 CODMn 58 8 Total SS 55 9 Fecal coliform 100 10 E coil 100 11 Ascarid egg 100 Total 796 96.3

93 Table 8-6 Cost Estimation of soil quality analyses at Guangdong Province Number Item Unit price USD (Rmb/sample) 1 pH 50 2 EC*103 50 3 TKN 120 4 TP 90 5 Available P (Bray or Mehlich method) 80 Total 390 47,2 Unit price according to provincial EMS, Prices in 2004: 1US$=8.27 Rmb

94 Table 8-7 Cost of Environmental Monitoring at implementation sites, Guangdong Annu Samples Sampling Price Year 1 Year Description al Numbers Frequency /sample 2 to 5 cost Groundwater At farm: Three batteries of 100 300 piezometers At project site: Three batteries of 100 300 piezometers Ground Water samples 12 4 96.3 4,622 4,622 18,488 Surface water Surface water (Three location in the river, upstream, down stream and 6 4 96.3 2,302 2,302 9,208 receiving point) Sampling. 15 days per year , USD 30 450 450 1,800 per day Soil Soil analysis (3 cropping systems, x 5 15 3 47.2 2,124 2,124 8496 sampling/ 2 crop seasons Air Air Quality 16 4 200 3,200 3,200 Noise Noise Random 200 200 Sub Total (US$) 13,498 37,992 Total (US$) 51,490

Table 8-8 Salary Cost of Environment Protection Staff Of PMOs, Guangdong Implementation,(year 1-5) Personnel Construction,(year 1) Operation, (year 2-5) Total Total (m/m) Total Cost (USD) Total Cost (USD) (m/m) Environmental officer 4 2000 8 4,000 Sub total (USD) 2,000 4,000 Total( USD) 6,000 Notes: 1. This is an opportunity cost. The employee is fully employed by PMOs for other technical environmental activities and will be assigned to EMP for 33% of his/her time per year during implementation (3 months per year) and 17% during operation for monitoring periods (2 month per year) 2. Estimated cost of environmental officer for PPMO is 500$ per month. 8.3 Environmental Training/Institutional Strengthening Plan 8.3.1 Training Objectives When Project Management Office is founded, Department of Environmental management of the Project should be organized before implementation/constructing stage. Department of Environmental Management of Project (DEMP) should communicate with local Environmental Protection Bureau, and arrange training plans. The objectives of the training program is to enable provincial and county PMO officials, responsible for implementation of EMP, to further strengthen their

95 capabilities and to enable them to ensure successful implementation of the mitigation and monitoring plans specified in EIA during final project design, implementation and operation of the project. The trainees could also include environmental officers from breeding farms in Project County and other high density livestock counties of Guangdong, but the respective groups should adsorb the transportation, food and lodging costs. In order to ensure the success of the intensive training courses and the implementation of EMP, it is required that the employees who will be assigned as the environmental officers should have university degrees from accredited universities in one of the relevant natural resource areas (livestock management, environment including water, soil and engineering, biology, etc.) and should have a minimum of five and three years of experience for the PMO and county PMO environmental officers, respectively. 8.3.2 Training Courses, Guangdong The following courses will be included in the environmental training program in Guangdong: ¾ Understanding and applying of laws, regulations, standards and norms of the Chinese government concerning environmental protection; ¾ Environmental management criteria utilized by the Government and World Bank; and ¾ Environmental technology and environmental monitoring techniques including: (1) status of surface waters, principles of hydrogeology, and groundwater distribution; (2) basic knowledge of environmental monitoring; (3) basic understanding of identifying degree of soil degradation and different types of soils; (4) Pollution control technologies and GIS application and replication technologies; (5) basics of water sampling and sample treatment for analysis of different elements identified in EMP; and (6) preparation of reports on environmental monitoring. The officers of provincial EPBs will provide training on these subjects in Guangzhou, being assisted by the scientist of the Animal Husbandry Bureau, Agriculture Office, Zhongshan University and South China Agricultural University, etc. In order to reduce the training cost, Guangdong PMOs have the option and could decide to arrange for combined training courses for the senior environmental staffs of respective PMOs, breeding farms and livestock Company, using the capabilities of Guangdong universities and scientific institutions. If the second option (combined option) is selected, the training program will somewhat modified and take the “training of the trainers” format. Contractor’s staffs, NGO and other line agency staff members are encouraged to attend the training courses. However, the cost of staff time and lodging must be born by the respective agency and will not be covered by the project. Training for technologies and awareness raising: From the beginning of the construction stage and per annum of the implementation stage of the project, account for 5 times training program, farmers and environmental management staffs of large and medium livestock farms in project county/other livestock density counties of Guangdong, should receive systematic training of environmental management and protection policy and regulation knowledge, manure management technologies (lagoon, biogas and fish pond), and awareness raising via explaining, interpreting,

96 consultant, propagation(VCD, Tape, website, broadcast etc.), to avoid environmental damages resulting from miss and fault during the construction phase. Every time training program should last 6 days and about 15 people, including 4-5 from the PMO should attend the training. 8.4 Budgets of Guangdong Table 8-7 presents cost estimates for implementation of Environmental Monitoring in Guangdong. Table 8-8 presents estimated budget for salaries of part time environmental protection staff of PMOs at various levels in Guangdong, while Table 8-9 presents total estimated for the training program and Table 8-10 presents the overall environmental management cost estimate of the proposed LWMEAP in Guangdong.

Table 8-9 Estimated Budget for Project Training Plan in Guangdong

Daily Total Training Plan No. of Personnel Time cost cost 1. All responsible persons of each sub-projects and Days Rmb Rmb constructors training 1.1 Trainees including 2 from 15 6 7,500 45,000 PMO 1.2 Facilities and management 6 1000 6,000 1.3 Transport 2,000 1.4 experts 2 6 1,600 9,600 Subtotal 62,600 2. Technologies and awareness raising training 2.1 Trainees including 2 from 15 6 7,500 45,000 PMO 2.2 Facilities and management 6 1000 6,000 2.3 Transport 2,000 2.4 experts 2 6 1,600 9,600 Subtotal 62,600 125,200 Total (Rmb)/ ($US) /15,140 Total of 5 times t($US) 75,700

Table8-10 Total cost estimates of Environment Management Plan, Guangdong Item Reference Implementation Subtotal* $US Construction Operation Incremental staff cost Table 8-8 2,000 4,000 6,000 Training Table 8-9 15,140 60,560 75,700 Environmental Table 8-7 13,498 37,992 51,490 Monitoring Sub-Total 30,638 102,552 133,190 Contingency, 10% 3,064 10,255 13,319 Total($US) 33,702 112,807 146,509

The figures presented are the assumed salaries of full-time employees (opportunity cost) of respective PMOs for the period that they should work on environmental issues, and not an additional cost to the respective PMO. The actual cost of EMP, with 10% contingency is estimated at USD 146,509.

97 9 Environmental Guidline Because other demongstration sites may be selected during 2-5 years of project implementation period, some principles of selecting demonstration area and EMP of the project should be followed. 9.1 Demonstration Area Selection 1 The watersheds will have measurable outflow of surface water from contiguous area draining into the South China Sea , the demonstration micro-watersheds would be part of the Pearl River Basin. Pig production in the area is the dominant cause of water pollution in small catchment areas, the catchment area is a connecting basin with easy identifiable boundary. Such geographical condition enables the correlation study of the livestock pollution impact on the small basin, the regional river and the estuary area. It is also more convenient for the pollution monitoring and treatment result assessment since the pig farms are distributing along the sides of the River. 2 The animal husbandry is developing in the area. Many pig farms use the ponds for waste storage and fishery nutrient supply. The local government encourages the farmers to develop towards the ecological and agricultural combination mode, which makes use of the waste from the pig production as nutrient or fertilizer supply for fishery or orchard planting. 3 local willingness to participate and implementation capacity. The environmental consciousness of the officers in the government should reached to a reasonable level, which makes better implementation of environmental management plan in that area. Local government and farmers have capacity and willingness in providing counterpart fund for the project. 4 The discharge points along the River are not too many. The pollution level in that area by pig production is relatively high, it can achieve a significant result comparing the change before and after the project implementation. Prior to selection of project location, detailed environment quality and water/soil nutrient balance studies must be carried out, to ensure that the project implement successfully will not damage water balance of the project areas, but promote advancing of ecological environment , and project development will bring significant positive impact to natural water/soil in project area and downstream water users.

9.2 Environment management plan 9.2.1 Environmental Impact Analysis During construction phase, the potential environmental impacts of the project during construction phase of the project are temporal and limited in magnitude. There are, however, a number of unavoidable aspects of project implementation, which, if not well handled, may have potential adverse impacts on both natural environment and social environment in some localities. The temporary negative impacts of theses impacts are believed to be minor and include potential vegetation damage during construction of aerobic/anaerobic pond, biogas plant and manure composting field infrastructure and due to land occupation at the construction sites, minor soil erosion and corresponding increase in sediment load during construction, and minor potential noise, air, and water pollution. During operational phase, potential environmental issues include: (1) Nutrient overload on surface water, groundwater and soil resources, if wastewater from cleaning of breeding facilities or from biogas/lagoon ponds applied intensively on cropland not according to the soil character and nutrient condition, or discharged to the surface water not reaching

98 the discharge standard (2) potential soil pollution through applying waste sludge from respective manure management facilities improperly on croplands, (3) potential adverse impact on biodiversity, contagious animal diseases on wildlife, increase in plant diseases and yield reduction if improper or intensive application of effluents on soil, (4) potential air pollution (toxic gases and odor) as well as greenhouse effect (CO2, CH4), in case biogas reactors gas collection systems are not working properly, and fermentation of livestock manure, and (5)construction of a lagoon/central biogas/waste water treatment facility in project site will occupy a relatively large area of farm land. 9.2.2 The mitigation measures Regarding each possible adverse impact, corresponding mitigation measure proposed in this EA report should be implemented thoroughly by the next selected demonstration site, for the purpose of preventing or reducing it to insignificant levels. Watershed management and livestock waste management practices proposed in this EA Report should guide livestock farmers of next project area and project managers in use of rational and environmentally balanced methods to reduce point and non-point source pollution within the project areas.The degree of environmental impacts during construction and operation phase of the project will be lightened to the least. 9.3 Recommendations and Environmental Requirements 1 In order to cope with the complex environmental issues, for next project demonstration site, an environmental management plan (EMP) including institutional strengthening, environmental training and environmental monitoring plan is developed. The EMP should be strictly implemented to ensure that the proposed project would have neither significant nor irreversible adverse impact on the natural environment of the project area. 2 Project beneficiaries should strictly follow the project management plans and all levels PMO should effectively supervise the implementation of the project at followed aspects: development of the project should follow national and province laws/regulation; effluents from lagoon/biogas and composting ferment should be discharged according to corresponding Discharge Standard; soil application should not exceed nutritional carrying capacity of soil and promote sustainable development of livestock industry. 3 Detailed environment quality and water/soil nutrient balance studies must be carried out before selecting project location, to ensure that the project implement successfully will not damage water balance of the project areas, but promote advancing of ecological environment , and project development will bring significant positive impact to natural water/soil in project area and downstream water users. 4 Individual environmental assessment of large and medium size breeding farms should be completed before finalization of the every manure management facilities , to determine whether the waste management technology and facilities are compatible and environmentally acceptable for respective farms, and whether proposed corresponding mitigation measures are adequate for the proposed operations. The detail feasibility and design reports of these projects must be presented before final environmental approval of such plans have be granted. The feasibility reports should include the details of project construction and operation .

99 10 Conclusions and Recommendations 10.1 Major Conclusions The environmental and social analysis of the Livestock Waste Management Project indicated that if the project is implemented triumphantly, it would have no major direct negative impact on the natural environment, its overall social and environmental impact would be positive. The project, should improve and support an integrated and comprehensive approach to managing and reducing livestock production nutrient load that is currently polluting the local and international waters, and strengthen institutional capacity and decision-making systems for livestock management at the Guangdong provincial levels in PRC. The achievement of these objectives should lead to reduction of soil and water pollution from livestock liquid and solid manure, leading to improvement of national and international water quality and public health, and a more equitable distribution of benefits generated from the rapidly growing livestock production. The project should create greater economic and social stability in the project areas as well as enhance institutional capacity in the project-selected areas and the whole province to better implement effective Environmental Protection Plans. 10.1.1 Selection of Project Areas Project area lies in Jiutan region of Yuanzhou township, Boluo County. Include 163 farms in Jiutan region of Yuanzhou township, total output number 30664 heads annually, the number of on hand at the end-year 41007 heads. Up to now, there are about 10 pig farms to be considered as demonstration sites in the project area.

10.1.2 Environmental Impact Analysis and Mitigation Measures The potential environmental impacts of the project during construction phase of the project in Guangdong are temporal and limited in magnitude. There are, however, a number of unavoidable aspects of project implementation, which, if not well handled, may have potential adverse impacts on both natural environment and social environment in some localities. The magnitude of such impacts will depend on the success of and the manner in which proposed project specific environmental mitigation plans and programs are implemented. The temporary negative impacts of theses impacts are believed to be minor and include potential vegetation damage during construction of aerobic/anaerobic pond, biogas plant and manure composting field infrastructure and due to land occupation at the construction sites, minor soil erosion and corresponding increase in sediment load during construction, and minor potential noise, air, and water pollution. However, if the mitigation measures proposed in the Report are successfully implemented, the degree of environmental impacts during this phase of the project will be insignificant. During operational phase, potential environmental issues that are identified in the report include: (1) potential impact (Nutrient overload) on surface and groundwater resources, and soil, if wastewater from cleaning of breeding facilities or from biogas/lagoon ponds applied intensively on cropland not according to the soil character and nutrient condition, or discharged to the surface water not reaching the discharge standard (2) potential soil pollution through applying waste sludge from

100 respective manure management facilities improperly on croplands, (3) potential adverse impact on biodiversity, contagious animal diseases on wildlife, increase in plant diseases and yield reduction if improper or intensive application of effluents on soil, (4) potential air pollution (toxic gases and odor) as well as greenhouse effect (CO2, CH4), in case biogas reactors gas collection systems are not working properly, and fermentation of livestock manure, and (5)construction of a lagoon/central biogas/waste water treatment facility in project site will occupy a relatively large area of farm land. Regarding each possible adverse impact, corresponding mitigation measure is proposed for the purpose of preventing or reducing it to insignificant levels. The use of better watershed management and best management practices based on the latest findings of research and extension component of the project should guide livestock farmers and managers in use of rational and environmentally balanced methods to reduce point and non-point source pollution within the project areas. In order to cope with the complex environmental issues, an environmental management plan (EMP) including institutional strengthening, environmental training and environmental monitoring plan is developed. The EMP should be strictly implemented to ensure that the proposed project would have neither significant nor irreversible adverse impact on the natural environment of the project area. 10.2 Recommendations In order to prevent potential negative impacts of the proposed project and to improve the likelihood of having a successful project, it is suggested to adopt a dynamic approach to the environmental monitoring and management by further incorporating measures to include additional measures to reassess the EMP if unforeseen environmental impacts are identified during project development and operation phases. 10.2.1 Follow-up Program A follow-up program is recommended to analyze the overall impacts of the project implementation and operation. Such program will be served to verify that predictions of impact put forward in the planning stages are as expected, and if not, adequate and timely corrective measures would be developed and implemented. Hence, corrective measures can be undertaken before irrevocable impacts have occurred. Information gathered from these programs is also used as input to refine future design. The proposed program should incorporate the monitoring plan as presented in Chapter 8. A number of interim reports should be prepared by the PPMO environmental officers of Guangdong, as outlined below, to ensure that findings of the EMP are incorporated in the project design of future sub-projects and a dynamic approach to EMP is followed by the project; (1) An interim report at the end of the pre-construction program, to provide input to the implementation phase; (2) Interims annual reports on the completion of implementation and construction activities; (3) Annual interim reports during the monitoring of project operation; and (4) A final report, summarizing impacts and successes of mitigation measures. If significant unforeseen negative impact is discerned at any stage, the schedule will allow for a re-evaluation of the situation and provide sufficient time to implement further measures. Reports should be submitted to senior PPMO management, the

101 World Bank, and various regional lined agencies, if requested, for review and comments. 10.2.2 Public Participation The community and public involvement process was initiated during the environmental and socio-economic surveys when livestock farmers and village communities were contacted to obtain baseline information. It is imperative that these processes should continue so that the project participants feel that they are involved in the project and that their views and concerns are being adequately considered in the project planning process. In order for the beneficiaries to participate in the project design more actively, it was suggested to develop detailed beneficial participation plans for the projects and have been prepared by the PPMOs in Guangdong. These plans detail participating activities in each stage of project implementation and participants including livestock farmers, breeding stations, large county operated farms, government organizations, NGOs and particularly the disadvantaged groups including women and minority nationalities in the project area. Since no specific sites and dates of participating activities are specified in these plans, it is suggested that the PPMOs develop a concrete schedule based on the prepared plan to guarantee a smooth implementation of the plan during project implementation. In general, the majority of livestock farmers support the implementation of the project. In addition, all the cadres at grassroots units, staff of the provincial and city project offices, staff of the livestock bureaus at provincial, city and county levels and officers of the Ministry of Agriculture who were interviewed strongly support the implementation of the project. 10.2.3 Further Suggestions and Environmental Requirements Project beneficiaries should strictly follow the project management plans and county PMO should effectively supervise the implementation of the project to control/prevent over nutrient load on natural environment from intense production of livestock in Project County. Development of the project should follow national and province laws/regulation, effluents from lagoon/biogas and composting ferment should be discharged according to national Discharge Standard of Pollutants for Livestock and Poultry breeding, and soil application should be controlled based on nutritional carrying capacity of soil and plant to protect the condition of natural water/soil and promote sustainable development of livestock industry. Prior to selection of project location, detailed environment quality and water/soil nutrient balance studies must be carried out, to ensure that the project implement successfully will not damage water balance of the project areas, but promote advancing of ecological environment , and project development will bring significant positive impact to natural water/soil in project area and downstream water users. Prior to finalization of the every manure management facilities in Guangdong, individual environmental assessment of large and medium size breeding farms should be completed to determine whether the waste management technology and facilities are compatible snd environmentally acceptable for respective farms, and whether proposed corresponding mitigation measures are adequate for the proposed operations. In the individual feasibility and design reports of these projects, the sizing and type of sewerage (mainly liquid manure, and washing water) treatment facilities and details and sizing of manure management facilities (settling ponds, manure

102 storage areas, biogas pond etc.) must be presented before final environmental approval of such plans could be granted. 11 List of References (1) The Technical Guidelines for Environmental Impact Assessment (HJ/T2.1~2.3— 93, HJ/T2.4~1995, HJ/T19~1997), SEPA (2) The World Bank Operational Policy 4.01, 4.04, 4.09, 4.11, 4.37; (3) Research on Guidelines and Methodology and Standards of Environmental Assessment for Agriculture Development, 2000. 12, SEPA. (4) Research Report on EIA Methodology for Agriculture Development, 2000. 12, SEPA. (5) Framework of Technique Guidelines for Agriculture Development, 2000. 12, SEPA. (6) EIA Guidelines for Agriculture Development, 2000. 12, SEPA. (7) Research on methodology of water resource development, China Environmental Technology Aid Project (C-2-5) funded by World Bank, 1997.7 (8) Environmental Standards in China, 2001, SEPA. (9) Dongjiang system water pollution integration prevention study special report collection in Guangdong, 1995, South China Environment Science Institution of SEPA. (10) Nature recourses in China, Guangdong Volume, 1996, Compilation Committee of China natural resourse series. (11) Soil and Resource of Guangdong, 1986, Guangdong Soil and Resource Bereau. (12) Ecology Environment actuality investigation report in Guangdong, 2003, Guangdong EPB. (13) Statistics Book of Guangdong in 2003. (14) Guangdong Soil1993, Compiled by Guangdong soil General Investigation Office. (15) Environmental Quality Report of Guangdong, 2001, Guangdong EPB. (16) Environmental Quality Report of Guangdong, 2003, Guangdong EPB. (17) Statistics Book of Guangdong in 2003. (18) Statistics Book on Country Economy of Boluo County in 2002, Boluo Statistic Bureau.

103 Appendix 1 Terms of References Environmental Assessment, Local Consultant

The consultant will prepare a study that identifies the baseline environmental situation; evaluates the project’s potential environmental impacts in its area of influence; examines project alternatives; identifies ways of improving project selection, siting, planning, design, and implementation by preventing, minimizing, mitigating, or compensating for adverse environmental impacts and enhancing positive impacts; and includes the process of mitigating and managing adverse environmental impacts throughout project implementation.

For the preparation of EA, the national consultants are strongly encouraged to obtain detailed information from the following World Bank documents: Operational Policies OP 4.01, Bank Procedures BP 4.01, and the requirements stipulated in environmental regulations in respective countries. The Bank’s other safeguard requirements (Operational Policy/Bank Procedure OP/BP) that might be triggered under this project are: OP/BP 4.04-Natural habitats, OP/BP 4.12 - Involuntary resettlement, OD 4.20 Indigenous People, and Information Disclosure Policy.

Local consultants must ensure that EA preparation work should also take into account procedures established by environmental authorities in respective countries.

The following EA documents should be prepared: EA for the entire project; and EA for each component, including the EMP.

The EA for the overall project will be prepared by a international environmental consultant to be contracted by FAO. The EA for the overall project will include all demonstration components, with inputs provided by the local consultants. Local consultants will be responsible for the EAs will be required for specific demonstration components in respective countries. Depending on the kind of demonstration component schemes identified, water quality monitoring may be required in the cause of EA preparation. Each EA will be reviewed and commented on by the international consultant as part of the internal review process.

According to Bank’s requirement of public consultation and information disclosure policy, the local EA consultants should conduct consultation with local interested groups, especially the project affected people and NGOs, at least two times in accordance with OP 4.01. EA should be made available locally and through the Bank’s Public Information Center for review by interested parties.

The EA report will be prepared to include the following items:

1. Executive summary Concisely discusses significant findings and recommended actions.

2. Policy, legal, administrative framework Discusses the policy, legal and administrative framework, scope and standards of EA, EA participants and organization.

104 3. Description of the proposed project Concisely describes the proposed project components, and its geographic, ecologic, and temporal context, including any offsite investments that may be required. Indicates the need for any resettlement plan. Includes a map showing the project site and the project’s area of influence.

4. Environmental setting of the proposed project Describes the physical, biological and socio-cultural environment, areas of special designation.

5. Environmental impacts of the proposed project Predicts and assesses the project’s likely positive and negative impacts during the construction as well as the operational phases, identifies mitigation measures and any residual negative impacts that cannot be mitigated, explores opportunities for environmental enhancement, identifies key data gaps and uncertainties, and specifies topics that require further attention.

6. Analysis of alternatives Systematically compares feasible alternatives (including the “without project” situation) in terms of their potential environmental impacts, the feasibility of mitigating these impacts, their capital and recurrent costs, their suitability under the local conditions, and their institutional, training, and monitoring requirements. For each of the alternatives, quantifies the environmental impacts to the extent possible and attaches economic values, where feasible.

7. Environmental management plan (EMP) Includes mitigation and monitoring plans, plans for capacity development and training, implementation schedule and cost estimates. The mitigation plan identifies and summarizes anticipated significant adverse environmental impacts; describes each mitigation measure and associated impacts, designs, and equipment requirements; estimates any potential environmental impacts of these measures; and provides linkages with other mitigation plans required for the project. The monitoring plan provides a specific description and technical details of monitoring measures, including the parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate); and monitoring and reporting procedures.

8. Public Consultation/Participation A free standing chapter describing public consultation/participation in the preparation of the EA.

An initiation report including detailed methodology and work plan is expected by February 30, 2004. A draft report is expected by April 31, 2004. The consultant must submit the report in the manner requested by the FAO. The consultant is expected to fully complete the reporting and documentation requirements by August 31, 2004, or as agreed to with the FAO. 9. Appendixes a. List of contributors to EA report –individuals and organizations;

105 b. References – written materials used in EA preparation both, published and unpublished; c. Records of interagency and consultation meetings, including consultations for obtaining the informed views of the affected people and local nongovernmental organizations (NGOs). The record specifies any means other than consultations (such as surveys) that were used to obtain the views of affected groups and local NGOs. d. Tables presenting the relevant data referred or summarized in the main text of the EA. List of associated reports (such as resettlement plans if prepared).

Appendix 2: EA Team, Guangdong

106 Team member Specialty Task Title Man -month Yinan Zhang Water environment , Introduction and Project Lecturer 5 environmental Background, management and Analysis of monitoring Environmental Impacts, Environmental Management Plan

Renhai Wu Environmental Policy, Legislation & Associate 2 management and Administration Professor planning, engineer Framework, Project Description Yunni Zhang Soil environment Description of Existing Lecturer 2 Environment Zhixiong Chen Water, Air and Environmental Engineer 2 Acoustic Mornitoring Monitoring Plan Shugong Wang Ecological Description of Existing Lecturer 2 environment Environment Lixuan Zhao Data collection Public Participation Master 2 student

EA Team, Guangdong Province, Peoples Republic of China

107 Appendix 3 Minutes of Public Discussion There have been several meetings during the project preparation phase of LWMPC with local villages and local officers to discuss the proposed projects and environmental assessments. These meetings have occurred at least two times and have resulted in full collaboration with local officials and full support of the project and the EA process. The many meetings with public officials in the Guangdong province showed that these projects are extremely positive and well received by the public and help the project area to reduce the bad impact of the livestock manure. Directors of hogpen usually support proposed project, but no money and capacity to invest for waste management facility, and be short of awareness on environmental issue. Now almost no any waste management facility been done in all kinds of Farms in project area.

Below is the summary tables of public consultation activities. PC1: Policy Development Public Consultation Substance Who we have met When Where What was Outcome discuss For select Officers of Project County: 1.21/April/2004 Yuanzhou Environmental projects are extremely Demonstration Mr Zou Shichang–Director eneral of 2. 19/May/ 2004 Town policies positive and well sites and Department of agricultural, Gorvernme awareness, received by the public EA consultation Mr.Huang Maoliang –section chief nt collection of and help the project of Department of agricultural Office,Bolu information for area to reduce the bad Mr Luo Shiliang- county subprefect o County in local society impact of the livestock Mr Zhang-EPB deputy-director Guangdong economy, manure. But officers of Mr Yang- section chief of county environment, Project County know Financial Bureau livestock little about Officers of Yuanzhou township: management environmental policies, Mr Wang – alcalde of Yuanzhou from local and Town, government Mr Liang Yaohong- commissary of agencies, township Committee comments and Mr Liang Wohe–deputy alcalde of suggestions on Yuanzhou Town, the proposed Mr Chen Wanliang- director of project township agricultural office ,counterpart fund Mr. Lin–Director of Yuanzhou EPB

Mr. Huang – Director of 1. Morning of First Mountain Environmental Directors of hogpen First Mountain Boar Field 21, April, 2004 Boar Field of policies usually support Local residents, 2. 19,May,2004 Mashigang awareness, proposed project, village committees, village, feedback but no money and Yuanzhou concerns of capacity to invest for Township of public to waste management Boluo County environment facility, and be short –Guangdong issues, of awareness on Mr. Liang Luzhen – Director 1. Morning of Gangbei comments and environmental issue. of Gangbei hogpen, 21, April, 2004 hogpen of Yihe suggestions on Now almost no any Local residents, 2. 19,May,2004 village, the proposed waste management village committees, Yuanzhou project, status of facility been done in Township of waste all farms. Boluo County management in –Guangdong farms Province Mr. Huang – Director of 1. Morning of Foling Boar Fo Mountain Boar Field, 21, April, 2004, Field of Foling Local residents, 2. 19,May,2004 village, village committees, Yuanzhou Township of Boluo County –Guangdong Province

108 Substance Who we have met When Where What was Outcome discuss the local government has difficulty in providing counterpart fund for the project. The environmental Environmental consciousness of the policies officers in the awareness, government has not collection of yet reached to a information for reasonable level Mr.Zhong guocheng- Director of which makes ones Township Office local society Daze economy, worry about the Mr.Ye Rongchao- alcalde of Daze Township environment, environmental Town, management issues Mr.Xie Jinbo- Warden of Xinhui Gorvernent livestock al Office, management in that area. Some District of Jiangmen city Xinhui of from local opinions from Mrs. Li Jinying- Director of Agr. noticing that the Expoiture Office,Department of Guangdong government agencies, government of the Agricultural of Xinhui comments and town presents the For select 1. Morning of suggestions on township Demonstration 22, April, 2004, the proposed development slogan sites and 2.Morning of project as “Promoting EA consultation 20,May,2004 ,counterpart fund Industrialization” also influences the verification of the long term agricultural land use promise for that area in the master plan for the town. Lianxing Environmental The waste is partly Livestock policies flows into the ponds of Mr.Liu, Director of pig farm,Daze Farm of awareness, village some farms and then Daze Town feedback ,Xinhui of concerns of discharge to the Guangdong public to Chaotou river. Some are environment directly flowing into the issues, Chaotou river without Shishan comments and any treatment. Boar Farm suggestions on Mr.Huang, Director of pig of Daze farm,Chaotou village the proposed Town project, status of ,Xinhui of waste Guangdong management in farms Sanshui District has local willingness Environmental both at policy level policies awareness, and farmers level. Many pig farms use collection of the ponds for waste information for local society storage and fishery nutrient supply. The Mr.HuangTiande-Deputy Director economy, local government For select 1. Morning of Xinan environment, Demonstration of Sanshui Department of 23, April, 2004, Township, livestock encourages the sites and Agricultural 2.Afternoon of farmers to develop Mr. zhang- EPB of Xinan Sanshui of management towards the EA consultation 20,May,2004 Guangdong from local Mr.Weng Hanshi-Sanshui EPB government ecological and agricultural agencies, combination mode, comments and suggestions on which makes use of the waste from the the proposed pig production as project ,counterpart fund nutrient or fertilizer supply for fishery or orchard planting.

109 Substance Who we have met When Where What was Outcome discuss The Qingqi village is the main area applies to be the demonstration area in Xinan Town. The breeding number of hogs in the area is Environmental 80,828. There are 206 policies households breeding awareness, feedback more than 100 heads of concerns of pigs per household. Mr.Liu Jinquan- Director of pig Many pig farms in the farm,Qingqi village Xinan public to environment area are combining the Mr.Liu Zhiqiang- Director of pig Township, issues, farm of Wanglougang village Sanshui of animal husbandry with Guangdong comments and the fishery. The waste suggestions on of some of the farms the proposed project, status of discharges into the waste ponds for fishery. Some management in waste also flows into farms the stream network of the area without pollution treatment, and go into the Bei River, which belongs to the Pearl River system.

Information Disclosure. Public announcements about the project and EA report on local network, as well as in newspapers/journals. These announcements informed the public of the locations (generally the PMO offices in each city) where the EA may be inspected and commented on. They also provide contact telephone numbers where information can be obtained.

LWMP Disclosure of Information Project site Phase 1 Mailing WB Policy Mailing and People committee of project area of requirement BP17.50 Boluo County, Guangdong province for response LWM 2004.7.31 Agencies in line with Environment Mailing and and Animal husbandry, Rural requirement development for response

List of the Agencies to be contacted for information of EA report Person to contact Organisation Time 1 Ms. He Huan, Coordinator, Member of National Steering March to August, Guangdong PMO, Chairwoman. Committee 2004 Mr. Ou Jiyin, Section Chief, Guangdong Agriculture Department 2 Mr. Yongfa Zhang Guangdong Livestock Extension Mr.Shubin Lin Services 3 Ms. Ping Jiang Environmental Protection Agency March to August, Ms. Qiang Lu 2004 4 Mr. Huiming Luo Institute of Epidemic Control and June 2004 Prevention of Guangdong Province 5 Ms. Sun Chongwu, Senior Senior Environment Specialist, June, 2004 Environment Specialist, World World Bank, Beijing Bank, Beijing 6 Mr. Shichang Zou Department of Agricultural of Boluo April to August, Mr. Maoliang Huang County 2004 7 Mr. Wutao Zeng EMS of Guangdong April to August, 2004

110 8 Mr. Qitang Wu Department of Environmental March to August Science and Engineering, South China Agricultural University , 2004 Appendix 4 Environment Standard 1. Discharge standard of pollutants for livestock and poultry breeding GB18596-2001 SEPA in China have issues the standards to control discharges of manure in 2002. The new rules specify the maximum amount of discharges confining animal areas can produce, as well as limiting distances between bred lot and residential areas or water supplies. It is valid in Jan. 1, 2003. This Standard divided the concentrated farms into two levels. The breeding amount at the level is 40 % of the total breeding amount. The breeding amount at the level 2 is 70% of total breeding amount. Table 1 Available standard for livestock and poultry breeding farms (Q) Level Pork chicken cattle 25Kg Egg chicken Meat Chicken Milk cattle Meat cattle 1 3000 100000 200000 200 400

2 500 Q < 15000 Q < 30000 Q < 100 Q < 200 Q < 3000 100000 200000 200 400

Table 2 Available standard for livestock and poultry breeding areas(Q) Level Pork chicken cattle 25Kg Egg chicken Meat Chicken Milk cattle Meat cattle 1 6000 200000 400000 400 800

2 3000 Q < 100000 Q 200000 Q < 200 Q < 400 Q < 6000 < 200000 400000 400 800

Table 3 Maximum tonnage of water rinse technics for livestock and poultry breeding Breed Pork(m3/100Q GD\ chicken(m3/1000Q GD\ cattle(m3/100Q GD\ Season Winter Summer Winter Summer Winter Summer Standard 2.5 3.5 0.8 1.2 20 30

Table 4 Maximum tonnage of dry rinse technics s for livestock and poultry breeding Breed Pork(m3/100Q GD\ chicken(m3/1000Q GD\ cattle(m3/100Q GD\ Season Winter Summer Winter Summer Winter Summer Standard 1.2 1.8 0.5 0.7 17 20

Table 5 Daily maximum discharge standard of pollutants for livestock and poultry breeding Limit BOD CODcr SS NH3-N TP Feces Ovum of (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) Coliform ascarid (per (per 1L) 100ml)

Value 150 400 200 80 8 1000 2

111 Table 6 Innocuity standard of waste residue for livestock and poultry breeding Limit Guide line Ovum of ascarid Death rate 9 5

Feces Coliform 1 0 5 per kilogram

Table 7 discharge standard of effluvium pollutants for livestock and poultry breeding

Limit Value

Effluvium concentration( no dimension) 70

2. Environmental quality standard for soils Environmental quality standard for soils mg/kg (GB15618-1995 1995-12-06 Implement) First Third level Second class class class Natural Soil pH backgrou <6.5 6.57.5 >7.5 >6.5 nd Items cadmium 0.20 0.30 0.60 1.0 mercury 0.15 0.30 0.50 1.0 1.5 arsenic paddy field 15 30 25 20 30 Dry land 15 40 30 25 40 copper cropland 35 50 100 100 400 et. orchard — 150 200 200 400 lead 35 250 300 350 500 chrome paddy field 90 250 300 350 400 Dry land 90 150 200 250 300 zinc 100 200 250 300 500 nickel 40 40 50 60 200 hexachlorobenzene 0.05 0.50 1.0 DDT 0.05 0.50 1.0

112 3. Environmental qulity standard for surface water

SEPA in China have issues the standards in 2002.

environmental qulity standard limit of basic items for surface water GB3838-2002

Items

Environmental water temperature should be limited in: 1 Water temperature temperature rise every week1 temperature drop every week2

2 pH 6~9

Saturated ratio 3 Dissolved oxygen 6 5 3 2 90%or 7.5

4 CODMn 2 4 6 10 15

5 CODcr 15 15 20 30 40

6 BOD5 3 3 34 6 10

7 NH3-N 0.15 0.5 1.0 1.5 2.0

Total phosphorus 8 0.02 0.1 0.2 0.3 0.4 calculate P

9 Total nitrogen calculate N 0.2 0.5 1.0 1.5 2.0

10 Copper 0.1 1.0 1.0 1.0 1.0

11 zinc 0.05 1.0 1.0 2.0 2.0

12 fluorid calculateF- 1.0 1.0 1.0 1.5 1.5

13 selenium 0.01 0.01 0.01 0.02 0.02

14 arsenic 0.05 0.05 0.05 0.1 0.1

15 Mercury 0.00005 0.00005 0.0001 0.001 0.001

113 16 cadmium 0.001 0.005 0.005 0.005 0.01

17 chrome hexad 0.01 0.05 0.05 0.05 0.1

18 lead 0.01 0.01 0.05 0.05 0.1

19 cyanide 0.0050.05 0.05 0.2 0.2 0.2

20 hydroxybenzene 0.002 0.002 0.005 0.01 0.1

21 oil 0.05 0.05 0.05 0.5 1.0

22 Anion surfactant 0.2 0.2 0.2 0.3 0.3

23 sulfide 0.05 0.1 0.2 0.5 1.0

24 coliform number/L 200 2000 10000 20000 40000

114 115

Appendix 5 Public Health Assessment

The issue of public health is one important factor to identify the livestock manure management system in this project. In order to collect the baseline information associated with the public and animal health risk assessment, we carried out a survey on the situation of infectious diseases in Huizhou city, especially in Boluo county including the Yuanzhou and Nine-pond town during 24th to 28th, August. Based on the data collecting form made by Dr. Hussni, we designed a questionnaire in Chinese to help collect the information on this subject. We have made face to face interview with the government officers, production systems managers, veterinarian and workers in pig farms. During this period, we have also visited local doctors, common villagers and studied the records available in government office, pig farm and local hospitals. Baseline information has been collected by the investigation and reported as follows.

A The general information of public and animal health relating to livestock waste management in Huizhou city, China

1 The general situation of animal production, public and animal health in Boluo county The Boluo county is a main swine production area in Huizhou city. With the economical development and more and more limitation for the pig farms, many stockmen move their farms from Shenzhen, Guangzhou, Dongguan city to this county. In this county, SPP of swine is 465,600 and marked head is about 625,300 in 2003, while for Huizhou city, the number is 1,080,192 and 1,438,190, respectively. General speaking, Boluo county makes up half of the swine production of Huizhou city. As well as Yuanzhou and Nine-pond town are concerned, it is the largest swine production area in Boluo county. The SPP of swine in this area is about 36,550 and marked head is about 47,400 in 2003. Compared with swine production, the cattle production in Boluo county is not developed. Take Yuanzhou and Jiutan town for example, the number of cattle is less than 50. According to our investigation, the main swine disease is diarrhea caused by E. coli and viruses, PRDC caused by many kinds of bacteria and viruses( Pasteurellosis, Streptococosis, App, Atrophic Rhinitis , PRRS etc.), non-typical swine fever(hog cholera) and PMWS caused by PCV-2, PRRS and other non-identified reasons. The most significant difference between Boluo county and other area in Guangdong province is that diarrhea caused by E. coli, salmonellosis, TGEV, PEDV etc. has much higher incidence, which bring a great deal of losses to the swine production. Like other area in China and the whole world, PRDC become a kind of common disease. Classical Swine Fever (Hog cholera), which is the most important disease in 1980s and 1990s, become less and less important because of widely vaccination. We are glad to find although the stocking density become higher and higher, the local people are much healthier than before. Two of the most important diseases are Viral hepatitis and Tuberculosis, which have relatively higher incidence. Compared with 1980s and 1990s, the ill cases related to diarrhea have significantly reduced. The local doctor told us for a natural village of 1000 persons, there are 1-2 cases of diarrhea every month. Because the centers of disease control have no record regarding this respect, it is difficult to give a correct assessment. We believe it is the improvement of the living habit and living condition which lead to the descend of the diarrhea and we must admit the environment is become worse with the development of animal (swine) production. The following data are derived from our survey on the area. Table 8 JIUTAN

swine Total 36,550 Sale/year 47,400

year 2001 2002 2003 2004 Number Name of infecte infect Number infect Number infect Number Died(mo disease d ed died ed died ed died rtality) 131(35.2 155(37. 114(32. 57(31.6 Hog cholera 372 410 351 180 1) 80) 47) 7) Salmonellosi 345(56.6 360(62. 344(66. 181(67. 610 575 520 267 s ) 6) 15) 7) 276(38.2 217(33. 236(35. 141(45. Pasteurellosis 722 645 666 310 ) 64) 43) 4) Streptococosi 162(26.7 146(25. 132(27. 605 570 477 281 74(26.3) s ) 61) 67) Erysipelas 97(38.03 87(33.4 103(37. 61(43.5 255 260 276 140 suis ) 5) 3) 7) Transmissibl e 505(41.7 314(34. 305(35. 152(34. 1210 922 866 437 Gastroenteriti ) 05) 21) 78) s 441(58.3 365(54. 291(57. 130(46. Pseudorabies 756 667 510 281 ) 7) 05) 3) Swine 65(30.9 71(30.4 245 80(32.6) 210 233 167 82(49.1) influenza(?) 5) 7) 375(41.2 260(34. 275(33. 162(39. E.coli 910 756 815 412 ) 4) 7) 3) 35(29.1 APP 210 60(28.5) 191 16(8.37) 230 81(35.2) 120 6) Atropic 17(36.1 16(31.3 65 21(32.3) 47 51 23 7(30.43) Rhinitis 7) 7)

Table 9 BOLUO

swine Total 465,600 Sale/year 625,300

year 2001 2002 2003 2004 Name of infected death infected death infected death infected death disease

118 Hog cholera 4624 1595 4442 1352 4526 1537 1910 636

Salmonellosis 7477 4181 6773 3850 6905 3746 3345 1724

Pasteurellosis 8142 3359 8610 3217 7795 3370 3661 1455

Streptococosis 6940 1875 7125 1774 6750 1923 3456 972 Erysipelas 4104 1301 4325 1471 3955 1272 2015 655 suis Transmissible 13550 4947 12560 3895 11655 4150 6255 2370 Gastroenteritis Pseudorabies 8324 3742 7834 3320 6740 3755 3408 1539

E.coli 10530 4356 9766 4140 10750 3945 5245 1870

APP 2560 736 2342 679 3150 950 1623 467

AR 705 231 670 250 740 225 340 151

Table 10 Huizhou

Swine Total 1,080,192 Sale/year 1,438,190

Year 2001 2002 2003 2004 Name of incidenc incidence death incidence death death incidence death disease e Hog cholera 11635 3830 10463 3904 12650 4505 6234 2322

Salmonellosis 23507 10536 25022 11441 24250 17110 13105 7050

Streptococosis 19223 55335 18781 4996 20137 5120 9767 2077

Pasteurellosis 26640 11976 24050 12051 27058 12156 12448 7157 Erysipelas 9548 3176 10572 2963 8790 3042 4124 1486 suis Transmissible 31165 11477 29619 10340 32436 11750 16500 5609 Gastroenteritis Pseudorabies 19113 10669 17850 9357 15790 8328 8047 4114

E.coli 24570 10650 22852 9509 19440 8671 8495 3746

APP 5964 1761 6210 1835 6132 1750 3340 910

119 AR 1416 493 1032 323 964 270 476 143

Table 11 Center of disease control of BoLuo BoLuo Human : the number of total population 777074 county male 398545 female 378529

year 2001 2002 2003 2004 Name of morbidity rate morbidity rate morbidity rate morbidity rate disease Brucellosis 0 0 0 0 0 0 0 0

Salmonellosis 0 0 0 0 0 0 0 0

E.coli 0 0 0 0 0 0 0 0

Shigella 0 0 0 0 0 0 0 0

Lepto 2 0 2 0 0 0 0 0 Viral 158 0 84 0 48 0 86 0 hepatitis Rotavirus 6 0 4 0 0 0 1 0 diarrhea Tuberculosis 464 0 456 0 331 1 325 0 Japanese 0 0 0 0 0 0 0 0 encephalitis

Table 12 Center of disease control of BoLuo JiuTan Human: the number of total population 19268

male 9721 female 9547

year 2001 2002 2003 2004 Name of morbidity rate morbidity rate morbidity rate morbidity rate disease Brucellosis 0 0 0 0 0 0 0 0

Salmonellosis 0 0 0 0 0 0 0 0

E.coli 0 0 0 0 0 0 0 0

Shigella 0 0 0 0 0 0 0 0

120 Lepto 1 0 0 0 0 0 0 0 Viral 0 0 0 0 3 0 1 0 hepatitis Rotavirus 0 0 0 0 0 0 0 0 diarrhea Tuberculosis 5 0 4 0 3 0 4 0 Japanese 0 0 0 0 0 0 0 0 encephalitis As We have said before, these data should be rough and should not be regarded as the evidence to evaluate the swine disease in China.

2. The baseline information on current antibiotics use Table 13 Baseline information on current antibiotics use Antibiotic Use in Animal Feed Method of Antibiotic Purpose of Use administration Cephalosporin (third Serious respiratory or digestive bacterial IM(Swine) generation) infection

Ceftiofur IM(only in chicken)

Lincosamide Not used

IM and use as feed Lincomycin additive with Respiratory infection Spectinomycin Via drinking water Macrolide Seldom used in swine (poultry) Via drinking water Tylosin Respiratory infection or feed

Penicillin IM Various bacterial infection

Procaine Penicillin G IM Various bacterial infection

Penicillin Benzathine IM Various bacterial infection

Chlortetracycline Via drinking water or used as Respiratory infection feed additive

Pleuromutilin Via drinking water Digestive infection

121 Via drinking water Serious respiratory or digestive bacterial Tiamulin or feed infection

Polypeptide Not used

Bacitracin Not used

Sulfanomide IM, IV or via feed Mainly used in breeding swine

Sulfanomide/combination

Tetracycline Seldom used

Via drinking water Chlortetracycline or used as feed Respiratory infection additive Via drinking water Oxytetracycline or used as feed Respiratory infection and growth-ppromotion additive

Carbadox Via feed Respiratory infection and growth-promotion

Serious respiratory or digestive bacterial fluoroquinolones IM infection IM ,via drinking florfenicol respiratory or digestive bacterial infection water and feed IM ,via drinking amoxicillin respiratory or digestive bacterial infection water and feed

neomycin via drinking water digestive bacterial infection

B. Assessments and mitigation of risk on animal and public health We found in the survey that the incidence of swine diseases had become much higher than beforeso did the complexity of these diseases and the pig production were influenced. The main cause that has brought about the results is the increase of pig breeding density. We must change this situation by education and training and this task is also the work we must complete in our project.

All of main swine diseases, such as diarrhea caused by E.coli and viruses, PRDC caused by many kinds of bacteria and viruses (Pasteurellosis, App, Atrophic Rhinitis, etc.), non-typical swine fever (hog cholera) PMWS and PRRS are non-zoonosis (no transmission to human beings). We have no reasons to worry about them, and they cannot cause public health problems, either.

122 For the zoonosises that possibly happen, such as the diseases caused by Hepatitis E virus, RotavirusEscherichia coli O157, SalmonellaCampylobacter jejuniStreptococcus suisascarisBalantidiumcoliGiardia cysts and Clonorchsis sinensis, we will be able to achieve effective control by the following measures: mass vaccination, breeding management, preventive surveillance and control.

The antibiotics use in pig production are strictly governed and furthermore the government are strengthening the usage limitation

123

124