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Integrated Safeguards Data Sheet (Initial) Section I - Basic Information Date ISDS Prepared/Updated: 11/06/2003 A. Basic Project Data (from PDS)

Public Disclosure Authorized I.A. 1. Project Statistics Country: Project ID: P066955 Project: Urban Environment Project Task Team Leader: Wiebe Moes Authorized to Appraise Date: August 18, 2003 IBRD Amount (Sm): 133.00 Bank Approval: January 29, 2004 IDA Amount ($m): Managing Unit: EASUR Sector: Sewerage (35%); Roads and highways (25%); Lending Instrument: Specific Investment Loan (SIL) Other social services (25%); Solid waste management Status: Lending (10%); Water supply (5%) Theme: Municipal govemance and institution building (P); Pollution management and environmental health (P); Access to urban services for the poor (P); Infrastructure services for private sector development (S); Other urban development (S) Public Disclosure Authorized I.A.2. Project Objectives (From PDS): The objective of the Zhejiang Urban Environment Project (ZUEP) is to enhance the efficiency and equity of waste management in and Hangzhou municipalities and the redevelopment of the historic inner city in Shaoxing and Cicheng, and thereby facilitating the sustainable development of these cities and establishing a model for conservation of cultural heritage in other Chinese cities.

The project will support measures to increase the utilization of waste treatment facilities, increase sewerage services in underserved areas including the fast-growing suburban areas and satellite towns in Ningbo; and to improve waste management institutions and finances through implementation of utility reform measures.

Redevelopment of the historic inner-city and conservation of build heritage in Shaoxing and Cicheng is a

Public Disclosure Authorized top priority of the municipal governments and the project will contribute to improving the quality of life of their citizens, sustain their cultural and historic nature through tourism development, upgrade their housing stock and safeguard environmental conditions.

I.A.3. Project Description (From PDS): The project in the three municipalities of Ningbo, Shaoxing and Hangzhou consists of a mixture of environmental infrastructure services, urban redevelopment and cultural heritage conservation components, along with associated technical assistance.

Components:

Ningbo (a) South Jiangdong Sewerage and Treatment Plant (b) Zhenhai Sewerage and Treatment Plant Public Disclosure Authorized (c) Cicheng Infrastructure Development (d) Dongqian Lake Development (e) Shaoxing Historic City-Center 2 ISDS

(f) Hangzhou Landfill Expansion (g) Services, training and Implementation Support

I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.)

Zhejiang Province (population 39 M) is one of the most important of the eastern coastal provinces in China. It is an integral component of the Yangtze Economic Zone and has a strong industrial sector and prosperous agricultural base.

Hangzhou (urban population 3.7 M) is the provincial capital and has an important geographical location on the N bank of the Qiantang River at the apex of Hangzhou Bay. The city is a major tourist destination, a major attraction being the famous . Waste generation in the city is increasing rapidly, in part due to improvements in collection, and there is an urgent need for new disposal facilities as the existing landfill is nearing completion. The project proposal is to extend the existing well operated landfill, located in a small valley some 18 km N of the urban center; this option was selected in preference to 8 potential new landfill sites elsewhere on grounds of lower incremental environmental impact.

Ningbo (urban population 1.26 M) is an important port and industrial center located at the estuary of the Yongjiang River. The urban center of Ningbo and the outlying township of Cicheng are traversed by a number of small rivers, which currently receive large wastewater discharges. Dongqian Lake is located about 15 km from the Ningbo urban center and is the only major scenic area for Ningbo. There are proposals to expand tourism in the lake area, but the lake is also an important water source for urban supply and agriculture. Existing and potential further pollution threatens these beneficial uses.

Shaoxing (urban population 0.5M) is in the NE of Zhejiang and is one of the key cities in the Changjiang River delta. The city has a long history and has been the regional political, economic and cultural center since ancient times. Much historical and cultural heritage and many historical street areas are still well preserved, and the old city has a network of canals fed from the moat that surrounds the city. Areas adjacent to these canals in the historic areas of the city house in the order of 30 000 people, but urban services are poor and properties lack basic water, sanitation and energy supply facilities.

The project would directly benefit about one million people through improved water supply, wastewater and solid waste collection and disposal, energy supply services, housing in the historic city centers, roads and transportation, flood control, and recreational facilities. A small number of people will be directly affected by the project because of resettlement and enterprise relocation from crowded inner-city locations and displacement by construction activities. The total number of people to be permanently resettled is estimated at 7,600 while the number of people affected by enterprise relocation is estimated 2,100.

The project components in Shaoxing and Cicheng are located within culturally sensitive areas but issues are adequately dealt with because of the heritage conservation approach with these components. Dongqian Lake project component is located within an environmentally sensitive area.

B. Check Environmental Classification: A (Full Assessment) Comments: 3 ISDS

C. Safeguard Policies Triggered (from PDS) (click on Q for a detailed desciption or click on the policy number for a brief description) Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) 0 Yes 0 No Natural Habitats (OP 4.04, BP 4.04, GP 4.04) 0 Yes 0 No Forestry (OP 4.36, GP 4.36) 0 Yes 0 No Pest Management (OP 4.09) 0 Yes * No Cultural Property (OPN 11.03) 0 Yes 0 No Indigenous Peoples (OD 4.20) 0 Yes 0 No Involuntary Resettlement (OP/BP 4.12) * Yes 0 No Safety of Dams (OP 4.37, BP 4.37) 0 Yes 0 No Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) 0 Yes * No Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* 0 Yes 0 No

Section II - Key Safeguard Issues and Their Management D. Summary ofKey Safeguard Issues. Pleasefill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data.

II.D. la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts.

The environmental impact of the project is expected to be on balance substantially positive in terms of improved water quality in the rivers and canals in the urban areas of Ningbo (and surrounding towns) and Shaoxing and of improved and sustainable wastes management in Hangzhou. There are, however, two significant impacts in Ningbo/Shaoxing and two in Hangzhou.

The major increases in the level of wastewater treatment in Ningbo Municipality will substantially increase the quantities of wastewater treatment sludge requiring disposal. It is hoped that in future there may be beneficial use of treated sludge, but, at least in the immediate term, there will be an increased burden on municipal solid wastes management services. Dredging of urban canals in Cicheng (Ningbo) and Shaoxing and of Dongqian Lake is proposed, but the justification has not as yet been demonstrated in all cases. If dredging proceeds, disposal of dredgings may have significant impacts, and detailed monitoring of sediments will be necessary to determine acceptable disposal routes.

In the case of the Tianziling landfill in Hangzhou, although the facility will meet international standards of sanitary landfill, there will be the inevitable potential impacts of leachate and landfill gas generation. Each will occur throughout the lifetime of the site and in the case of gas generation for a considerable period thereafter. The potential impact of leachate in terms of groundwater contamination will be mitigated by means of a comprehensive site liner and collection and treatment of leachate. The impact of gas generation will be mitigated by forced extraction of gas with beneficial use of the gas for power generation.

II.D. lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or 4 ISDS

due to multiple project component.

The need for sludge disposal from wastewater treatment in urban Ningbo will be increased by the centralisation of wastewater treatment at the Jiangdongnan wastewater treatment plant, which will receive wastewater from the nearby town of Cicheng and from the area surrounding Dongqian Lake.

II.D. Ic Describe any potential long term impacts due to anticipated future activities in the project area.

The quantities of sludge requiring disposal will continue to increase as a consequence of population growth, increases in the wastewater treatment rates in Ningbo and the potential future further centralisation of wastewater treatment. Accordingly the Ningbo Municipal Wastewater Company is preparing a comprehensive Sludge Management Plan for all wastewater treatment sludge generated in Ningbo Municipality area.

Rates of waste generation in Hangzhou, and therefore potential deposition at the Tianziling landfill site, will increase due to population growth and increases in the wastes collection service area. Such an increase would reduce the operating lifetime of the site, but at the same time there are proposals to increase the current low recycling rates for waste stream components, which will have the effect of increasing the site life. An increase in waste deposition rates may increase gas generation rates, but the overall period of gas generation at the site should be largely unaltered in view of the fixed capacity of the site.

II.D.2. In light of 1, describe the proposed treatment of alternatives (if required)

The need for centralisation of wastewater treatment at Jiangdongnan in terms of cost and environmental advantages has not as yet been suitably demonstrated. Localised wastewater treatment at Cicheng and Dongqian Lake has potentially greater residual water quality impact because of the lower assimilative capacity of the smaller potential receiving watercourses. However, the wastewater is entirely of domestic origin and there may be opportunities for beneficial use of the sludge. Investigations into these issues are ongoing

II.D.3. Describe arrangement for the borrower to address safeguard issues Compliance with the Environmental Assessment, Environmental Management Programs, Resettlement Action Plans, and Resettlement Policy Framework will be monitored by independent institutions that will be hired under the project management

Il.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people.

The participatory approach for the resettlement aspects of the project, particularly those associated with inner-city redevelopment will be dealt with in RAP, following closely the China and Bank procedures and guidelines. Tourism development by its nature require consultation and participation of the local communities, businesses and civil society institutions at large. The development of the tourism strategies in Shaoxing and Ningbo and the preparation of tourist master plans will be carried in a participatory approach. 5 ISDS

E. Safeguards Classification (select in SAP). Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply.

[X] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [ 52.S - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. - No safeguard issues ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues.

F. Disclosure Requirements EnvironmentalAssessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 2/15/2003 Date of "in-country" disclosure 2/25/2003 Date of submission to InfoShop 2/25/2003 Date of distributing the Exec. Summary of the EA to the Executive Directors (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank 1/15/2003 Date of "in-country" disclosure 1/30/2003 Date of submission to InfoShop 2/15/2003

Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Dam Safety ManagementPlan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why.

Signed and submitted by Name Date Task Team Leader: Wiebe Moes 01/07/2003 Project Safeguards Specialists 1: Anil H. Somani/Person/World Bank 01/17/2003 Project Safeguards Specialists 2: Project Safeguards Specialists 3: Daniel R. Gibson/Person/World Bank 01/28/2003 6 ISDS

Approved by: Name Date Regional Safeguards Coordinator: Glenn S. Morgan 01/30/2003 Sector Manager/Director Keshav Varma 01/10/2003