SUMMARY INITIAL ENVIRONMENTAL EXAMINATION
ACID RAIN CONTROL AND ENVIRONMENTAL IMPROVEMENT PROJECT
IN THE
PEOPLE’S REPUBLIC OF CHINA
July 2001 CURRENCY EQUIVALENTS (as of 2 July 2001)
Currency Unit - Yuan (Y) Y1.00 = $0.1208 $1.00 = Y8.2779
The exchange rate of the Yuan is determined in relation to a weighted basket of currencies of the trading partners of the People's Republic of China. In this report, a rate of $1.00 = Y8.30 has been used.
ABBREVIATIONS
ADB - Asian Development Bank ATC - Anhui Tongdu Copper Limited Company CNM - Chizhou Non-Ferrous Metals Group company EIA - environmental impact assessment EPB - Environmental Protection Bureau GDP - gross domestic product IEE - initial environmental examination NOx - nitrogen oxides NO2 - nitrogen dioxide PRC - People's Republic of China SO2 - sulfur dioxide TSP - total suspended particulates WFW - Wuhu Feiying Wood Chemicals Limited Company WHC - Wuhu Hengxin Copper Group Company WSC - Wuhu Shanjiang Chemicals Limited Company WZM - Wuhu Zhengxing Materials Limited Company
WEIGHTS AND MEASURES
km - kilometer m3 - cubic meter µg - microgram t - ton (metric) yr - year
NOTES
(i) The fiscal year (FY) of the Government and the executing and implementing agencies coincides with the calendar year. (ii) In this report, "$" refers to US dollars. CONTENTS
Page
MAP: Acid Rain Control and Environmental Improvement Project i
I. INTRODUCTION 1
II. DESCRIPTION OF THE PROJECT 1
A. Subproject Descriptions 2 B. Project Alternatives 4
III. DESCRIPTION OF THE ENVIRONMENT 10
IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 13
A. Beneficial Environmental Impacts 13 B. Negative Environmental Impacts 17 C. Mitigation Measures 17
V. FINDINGS AND RECOMMENDATIONS 23
A. Economic Assessment 23 B. Social Assessment 23
VI. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PROGRAM 24
VII. CONCLUSIONS 27 i I. INTRODUCTION
1. This summary initial environmental examination (IEE) relates to the Acid Rain Control and Environmental Improvement Project (the Project) in Anhui Province in the People’s Republic of China (PRC). It has been prepared by the Anhui Provincial Government using feasibility studies, IEE and other environmental studies prepared by PRC institutes,1 and additional investigations by consultants financed under the project preparatory technical assistance (TA) provided by the Asian Development Bank (ADB).2 The feasibility study and environmental reports were prepared in accordance with PRC regulatory practices. The summary IEE has also benefited from the findings of ADB loan Fact-Finding Mission in April 2001. ADB has classified the Project as environmentally sensitive, category B.
2. This summary IEE report has not been evaluated, assessed or endorsed by ADB. ADB’s assessment of the report and evaluation of the environmental impacts related to the subprojects will be included in the documentation presented to the Board at the time the Project is considered for approval. Pursuant to ADB’s guidelines, the summary IEE is circulated to ADB’s Board of Directors in advance of the loan consideration, which is expected later in 2001. The main environmental studies are available at the Project office on request.
3. This summary IEE first describes the Project and baseline environmental conditions found in the project area. This discussion is followed by an analysis of alternatives for the proposed subprojects, an assessment of major short-term and long-term impacts associated with their implementation, and the planned mitigation measures. The environmental management plans that will be used to ensure that the suggested mitigation measures are implemented are also discussed along with the public involvement activities for each subproject.
II. DESCRIPTION OF THE PROJECT
4. The Project is designed to reduce acid rain precipitation in Anhui, a relatively poor province with a per capita gross domestic product (GDP) at 72 percent of the national average. The Project has three main components: six cleaner production subprojects for industrial enterprises designed to reduce acid rain causing air emissions, wastewater, and solid wastes; two environmental improvement and acid rain damage rehabilitation subprojects; and institutional strengthening. The geographic scope of the Project covers the two cities of Wuhu and Tongling, and the prefectures of Chizhou and Huangshan in Anhui Province, the PRC. The total project area is approximately 40,000 square kilometer (km2) and has a population of 17 million. The province and the distribution of the subprojects are shown in the map.
5. The industrial subprojects include three nonferrous metal manufacturing facilities (process upgrades to reduce pollution intensity and load), a ductile iron pipe production plant (process modification and waste heat reutilization system upgrade and dismantling of steel plant), and two chemical companies (process modernization to reduce air and water pollution). One of the chemical companies will also construct an industrial cogeneration plant and close 29 small boilers. The two subprojects in protected areas include rehabilitation of power supply, water supply, wastewater treatment, and solid waste management. These investment programs include many environmental improvement activities such as industrial relocation, fly ash utilization, and waste management. The
1 Beijing Non-Ferrous Metallurgy Design and Research Institute; Environment Science Institute, People's Liberation Army Logistics Engineer Institute; 3rd Engineering Design Institute, Chemical Ministry; Maanshan Iron & Steel Design Institute; Anhui Environment Science Institute; and Environmental Impact Assessment Department, Anhui Science and Technology Consulting Center. 2 TA 3462-PRC: Acid Rain Control and Environmental Improvement, for $964,000, approved on 27 June 2000. 2 primary goal of each subproject is to improve the environmental quality by reducing sulfur dioxide (SO2) and other air emissions, and thus reducing acid rain in Anhui Province.
A. Subproject Descriptions
1. Cleaner Production Enterprises
6. Anhui Tongdu Copper Limited Company. The subproject will upgrade the smelter and blast furnace system for the production of sulfuric acid, blister copper (65,000 tons per year [t/yr]), and electrolytic copper (15,000 t/yr); and install a double conversion and double absorption process to replace the current single conversion and single absorption process. The company produces 38 percent of the SO2 emission in Tongling City. The subproject will reduce SO2 production by 14,890 t/yr.
7. Chizhou Nonferrous Metals Group Company. The subproject comprises upgrading the of main process line for producing electrolytic copper (20,000 t/yr); capturing SO2 emissions for conversion to high-quality sulfuric acid that can be sold as a product; and relocating some process lines away from a residential area to a new industrial zone. The company’s industrial processes cause high emissions of SO2 and total suspended particulates (TSP) and pollute the city’s water. The company’s SO2 emissions account for about 33 percent of the total SO2 emissions in the city of Chizou. The subproject will reduce SO2 emissions by 6,040 t/yr and eliminate the threat posed by toxic metal emissions.
8. Wuhu Feiying Wood Chemicals Limited Company. The subproject comprises relocating the chemical plant from a residential area to the Wuhu Industrial Development Zone; eliminating current high pollution processes and products; using modern clean production technology to produce three industrial chemicals (paraformaldehyde, formaldehyde, and acrylic impact modifiers); and funding the process line for acrylic impact modifiers redesigned through equity investment. The company is the largest water pollution and third largest air pollution source in Wuhu City. Its chemical oxygen demand (COD) and SO2 discharge account for 14 percent and 12 percent, respectively, of the total discharges of Wuhu City. The subproject will reduce SO2 emissions by 1,372 t/yr and eliminate the largest pollution threat to the city’s drinking water.
9. Wuhu Hengxin Copper Refinery Group Company. The subproject comprises substituting pyro-smelting furnaces and establishing a modern refinery furnace and automatic copper casting system; substituting the blast furnaces with an advance oxygen-enhanced anode furnace; and providing auxiliary systems for producing electrolytic copper (75,000 t/yr) and other copper products (35,000 t/yr of polished copper bars, 21,000 t/yr of copper sheets, and 600 kilometer/yr of telecommunication cables). The company is the third largest SO2 source in Wuhu City and produces 20 percent of the total SO2 emissions in the city. Acidic wastewater discharges are 1.5 million tons per year. The subproject will reduce SO2 emissions by 1,952 t/yr.
10. Wuhu Shanjiang Chemicals Limited Company. The subproject comprises upgrading the caustic soda production line from the diaphragm process (35,000 t/yr) to the ion-membrane process (30,000 t/yr); constructing a cogeneration station to supply electricity and process heat to the Wuhu Industrial Development Zone and replacing 29 small boilers; and relocating dyestuff processing to reduce water pollution. The company emits large quantities of SO2 and is the fourth largest air and water pollution source in the city. The subproject will reduce SO2 emissions by 4,533 t/yr and provide energy efficiency improvements. 3
11. Wuhu Zhengxin Materials Limited Company. The subproject comprises demolishing of the current steel making system to eliminate air pollution and high energy consumption (annual capacity of 400,000 t of pig iron, 600,000 t of sintered ore, and 175,000 t of coke); modifying the current iron making system, using iron produced to make ductile iron pipe and fittings; expanding the cogeneration system to fully use the combustible gas from the iron furnace and coking process; and constructing a wastewater treatment and process water reuse system. The company’s obsolete production processes resulted in high SO2, TSP, and wastewater discharges. It is the second largest SO2 emission source in Wuhu City and accounts for 25 percent of the total SO2 emissions in the city. In addition, the company annually discharges 6.39 million tons of wastewater into the upstream of the water resources in Wuhu City, including 89 t of phenol and 8.6 t of cyanide. The subproject will reduce SO2 emissions by 2,545 t/yr, and improve energy efficiency and water resources.
2. Environmental Improvement and Acid Rain Damage Rehabilitation Entities
12. Environmental improvement and acid rain damage rehabilitation work in the Huangshan and Jiuhua Mountain ecological sites will be undertaken by the Huangshan Tourist Group Limited Company (HTC) and the Jiuhua Tourism Group Company (JTC). Rectification of damage due to acid rain will be the main focus, including improvement in electric supply, water supply, sewage treatment, fire protection, and solid waste systems to reduce impacts of local air emissions, and control of wastewater and solid waste discharged. Environmental monitoring systems to document acid rain impacts will be improved by these two components.
3. Institutional Strengthening
13. Institutional strengthening will be undertaken for the project management office, Anhui Environmental Protection Bureau (EPB), Anhui Provincial Planning Commission, their municipality- level counterparts, and all subproject enterprises. The component will have two main tasks. The first task is to improve the policy framework for reducing gas emissions that cause acid rain and implementing environmental policies at the Anhui Provincial Government level. The second task includes capacity building for improved operations management systems and provision of training for human resource development to undertake and manage ADB-assisted subproject investments at the enterprise level. This component will also help improve interagency communication and monitoring, and evaluation of project-assisted activities.
14. At the subproject enterprise level there will be two main activities: (i) improving corporate governance by activities such as creating diversity among the boards of directors by appointing crossindustrial and crossregional members; and (ii) strengthening overall financial and operations management and financial reporting systems of subproject enterprises. At the Anhui Provincial Government level, there will be four main tasks: (i) strengthening the capabilities of the project management office in project administration; (ii) assisting the Anhui Provincial Government to understand ADB’s procurement, reporting, international specifications, and tendering procedures including contracting, quality control, and project performance monitoring systems; (iii) strengthening environmental policy-making capabilities of the Anhui Provincial Planning Commission, (iv) improving environmental monitoring capabilities; and (v) strengthening public health and environmental awareness programs in Anhui EPB, and other relevant organizations. 4
B. Project Alternatives
15. The Project has been developed and designed to reduce air pollution, reduce acid rain frequency, and reduce economic losses due to health problems and lost productivity caused by air pollution. Subprojects have been selected based on various criteria, including air pollution reductions, reduction of other pollutants (e.g. wastewater and solid waste), protection of drinking water supplies, protection of biodiversity, and secondary criteria (e.g., cleaner production at industrial enterprises). For the entire project as well as individual subprojects, the three primary alternatives are: (i) no action, (ii) design for air pollution control only, or (iii) design for integrated air pollution control and environmental improvements. The third alternative is preferred both at the subproject and overall project level. Due to the serious pollution problems in the project area, the no action alternative is unacceptable. A project design based primarily on air pollution control was considered but not adopted because it was not cost-effective. The third alternative, based on an integrated environmental management approach, is the most cost effective in terms of reducing air pollution and acid rain, and providing additional environmental and economic benefits.
16. Before arriving at the final design of the proposed subprojects various technical alternatives were identified and evaluated for each subproject. The major alternatives, the advantages, and disadvantages of each are described in Tables 1 and 2. 5
Table 1: Alternatives to Proposed Subprojects
Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 Anhui Tongdu Copper Limited Company
No action – Modify primary smelting method from a Relocate further Flash smelting Top blown no upgrade closed-top blast furnace to top-blown from the urban On-site heating immersion and no submerged lance technology. Replace area Maintain single smelting double closure of stationary anode reverberatory furnace conversion and conversion and Tongling with a rotary anode furnace; use LPG single double No. 1 instead of oil as a fuel. Construct two absorption absorption, Cost: new waste heat recovery boilers and a 6 method On-site continuing MW power generation unit. Remove- Cost: cogeneration fines bottleneck from electro-refining to $60.24 mln Cost: optimize production at 80,000 t/yr. (Y500.00 mln) $48.19 mln Upgrade air pollution control systems (Y400.00 mln) and wastewater treatment and recycling systems. Modify acid making process from a single conversion absorption process to double conversion absorption process; install a sulfuric acid production system. Replace 3,800 m3/hr oxygen production station with two 6,500 m3/hr units. Construct a lined landfill with leachate collection system for the disposal of CaSO4 neutralization residue. Expand the current 35/6 kV electricity distribution system to a 110/6 kV electricity distribution system. Cost: $ 70.98 mln (Y589.17 mln) Chizhou Non-Ferrous Metals Group Company No action – Modify existing blast furnace smelting to Relocate plant Flash smelting Top blown continued Shui-Kou-Shan copper smelting method. Cost: not On-site heating immersion operations Upgrade particulate emissions control quantified Maintain single smelting double with no system for the copper ore smelting conversion conversion and upgrade. furnace and copper reduction furnace. single double Costs: Change existing sulfur dioxide absorption absorption continuing conversion and acid making process method On-site fines from single conversion and single Cost: cogeneration absorption method to double conversion $60.24 mln Cost: and double absorption method. Install (Y500.00 mln) $48.19 mln 3,000 m3/hr oxygen production station. (Y400.00 mln) Install new wastewater treatment capacity. Install a waste heat recovery boiler. Cost: $ 32.91 mln (Y273.15 mln) Wuhu Felying Wood Chemicals Limited Company No action – Construct three new production lines in Three new Three new plant industrial zone northeast of the Wuhu production lines facilities in closure. urban center, using modern clean in industrial industrial zone production technologies to produce zone northeast northeast of the Cost: None acrylic impact modifiers, formaldehyde, of the Wuhu Wuhu urban and paraformaldehyde. Process exhaust urban center. center. modern gas boiler and wastewater treatment. Modern clean clean production Cost: $ 47.00 mln production technologies to (Y390.14 mln) technologies to produce produce acrylic formaldehyde impact and paraformal- modifiers, dehyde 6
Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 formaldehyde, Cost: and paraformal- $32.53 mln dehyde. Cost: (Y270.00 mln) $38.55 mln (Y320.00 mln) Wuhu Hengxin Copper Group Company No action – Replace the existing open blast furnace Relocate the Flash smelting Top blown continued with a oxygen top-blown converter plant On-site heating immersion operations (Kaldo converter), replace the existing Maintain single smelting Double with no anode furnace with a tilting anode conversion/singl conversion and upgrade furnace, rehabilitate electrolytic copper e absorption double Costs: production unit. Modify the nickel method absorption continuing removal process with submerged Cost: On-site fines combustion equipment. Upgrade the $60.24 mln cogeneration existing wastewater treatment plant. (Y500.00 mln) Cost: Construct a 1,000 m3/hr oxygen- $48.19 mln generation unit. Modify the water (Y400.00 mln) drainage network. Add one new 20 t/hr circulating fluidized bed boiler with desulfurization capacity. Cost: $31.08 mln (Y257.96 mln) Wuhu Shanjiang Chemicals Limited Company No action – Modernize the 35,000 t/yr caustic soda Relocate Limin limin dye production process using ion-membrane Dye Processing plant technology to reduce emissions. Plant. closure. Centralize treatment for process line Modernize the Shanjiang effluents. Centralize wastewater 30,000 t/yr Company treatment. Construct cogeneration caustic soda continued station to simultaneously supply electric production operation power and process heat to the project process using with no and the surrounding industries in the ion-membrane upgrade. industrial development zone. Relocation technology. of Limin Dye company assets to Establish a new Shanjiang site. process line. Cost: Cost: $48.04 mln $39.63 mln (Y398.70 mln) (Y328.92 mln) Wuhu Zhengxing Materials Limited Company No action – Demolish current steel making system to Modification of Modify the continued eliminate air pollution and high energy the current steel current steel operations consumption. Modify the current iron making system. making system; with no casting system to add a ductile iron pipe Modify the Modify the upgrade casting and finishing system. Expand current iron current iron Costs: the cogeneration system to fully use the making system making system continuing waste gases and heat from the industrial to reduce SO2 to reduce SO2 fines processes. Construct a wastewater and total and TSP treatment system. suspended emissions. Cost: particulates Cost: $53.15 mln emissions. $42.17 mln (Y441.18 mln) Construct a (Y350.00 mln) wastewater treatment and process water reuse system. Cost: $50.60 mln (Y420.00 mln) Huangshan Tourist Group Limited Company No action – Upgrade the forest fire prevention Upgrade the Upgrade the 7
Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 continued system with three additional reservoirs forest fire forest fire operations and water-piping networks, construct prevention prevention Costs: none and equip 18 monitoring stations; system37 system with upgrade electricity supply system and with a system of groundwater phase out the use of oil and gas. many small wells and water- Construct 15 wastewater treatment construct and piping networks, plants. Upgrade existing garbage equip 18 construct and burners. monitoring equip 18 Costs: stations. monitoring $31.33 mln Thermal aerobic stations. Landfill (Y260.00 mln) stockpile – all garbage in a composting. sanitary landfill
Jiuhua Tourism Group Company No action: Expand two existing reservoirs; Construct dam Drill wells for continued Construct water supply enterprises and outside of water supply. operations the associated infrastructure in Jiuhua Jiuhua Oxidation ditch Costs: none and Kecun. Construct wastewater Protected Area. wastewater treatment plants in Kecun (activated Activated treatment for sludge) and Jiuhua (aeration biofilter). sludge Kecun Construct a solid waste incinerator in technology for wastewater Kechun and landfill in Wujiawan. both wastewater treatment Reconstruct toilets in Jiuhua. treatment facility. Cost: $ 20.48 mln systems. Compost solid (Y170.00 mln) Landfill all solid waste. waste. 3 CaSO2=calcium sulfate; kV=kilovolt; LPG=liquified petroleum gas; m /hr=cubic meter per hour; mln=million; MW=megawatt; $=US dollar; SO2=sulfur dioxide; t/hr=tons per hour; t/yr=tons per year; TSP=total suspended particulates; Y=Yuan Source: Consultants (Ecology and Environment, Inc., United States) 8
Table 2: Environmental Disadvantages of Each Alternative
Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 Anhui Tongdu Copper Limited Company Continued Minor short-term impacts to air quality High costs and High costs. No Higher project cost. fines. and noise levels during construction. loss of SO2 reduction. Lower air quality in Continued Increased noise levels during operation. economic base Minor short-term workshop. Minor short- elevated for the area. impacts to air term impacts to air sodium quality and noise quality and noise dioxide levels during levels during emissions construction. construction. and large volume of wastewater discharge. Chizhou Non-Ferrous Metals Group Company Continued Minor short-term impacts to air quality High costs and High costs. No Higher project cost. elevated SO2 and noise levels during construction. loss of SO2 reduction. Lower air quality in emissions More solid waste generated. economic base Minor short-term workshop. Minor short- and large for the area. impacts to air term impacts to air volume of quality and noise quality and noise wastewater levels during levels during discharge construction. construction. Wuhu Felying Wood Chemicals Limited Company Continued Minor short-term impacts to air quality Minor short- Minor short-term organic and noise levels during construction, term impacts to impacts to air wastewater higher project cost. air quality and quality and noise discharge, noise levels levels during SO2 during construction, emissions, construction, lower project cost, and fines. high project less economic cost, not reach benefit for the maximum future plant wastewater operation, not discharge and reach maximum SO2 emission wastewater reductions. discharge and SO2 emission reductions. Wuhu Hengxin Copper Group Company Continued Minor short-term impacts to air quality High costs and High costs. No Higher project cost. elevated SO2 and noise levels during construction. loss of SO2 reduction. Lower air quality in emissions economic base Minor short-term workshop. Minor short- and large for the area. impacts to air term impacts to air volume of quality and noise quality and noise wastewater levels during levels during discharge. construction. construction. Wuhu Shanjiang Chemicals Limited Company Continued Very minor short-term impacts to air Very minor elevated SO2 quality and noise levels during short-term emission, construction since it is in industrial impacts to air and large development zone. quality and volume of noise levels wastewater during discharge. construction. Need large supply of electric power and process steam. Wuhu Zhengxing Materials Limited Company Continued Minor short-term impacts to air quality Minor short- Minor short-term 9
Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 elevated and noise levels during construction. term impacts to impacts to air SO2, NOx Wastewater discharge upstream of the air quality and quality and noise and total city water intake. noise levels levels during suspended during construction, air particulates construction. Air pollution caused emissions pollution caused by combustible and large by combustible gas emission from volume of gas emission iron furnace. wastewater from iron Energy discharge. furnace. Energy consumption is consumption is high. Wastewater high. discharge Wastewater upstream of the discharge city water intake. upstream of the city water intake. HuangshanTourist Group Limited Company Continued Disruption to tourism during construction Greater visual Groundwater air pollution of dams and wastewater plants. Minor impacts due to supply is from burning short-term impacts to air quality and multiple questionable. gas. noise levels during construction. Must reservoirs and High drilling costs. Continued treat waste gas. Cost of burners high. lots of piping. Landfill requires discharge of Thermal large land area untreated stockpile and volume of wastewater. requires waste does not moderate land decrease very area. Odor. May much. Odor and contaminate possible water bodies. contamination of Cost of water bodies. stockpile moderate. Jihua Tourism Group Company Continued Disruption to tourism during construction Reservoir outside Groundwater degradation of water plant, reservoirs, and of the protected supply is of Jiuhua wastewater plants. Minor short-term area would require periodically River. impacts to air quality and noise levels additional pump contaminated in Continued during construction. Incinerator has high stations and Kecun area. degradation energy consumption. piping to serve Large land area of water Lower cost. purpose and a net required for quality in larger area of land oxidation ditch Minguan would be technology. Reservoir impacted. Composting Wastewater requires treatment in moderate land Jiuhua requires area. Odor. May more land area contaminate and water quality water bodies. is not as high as Cost of stockpile Alt. 2. Landfill moderate requires large land area and volume of waste does not decrease very much. Odor and possible contamination of water bodies.
NOx= nitrogen oxides; SO2=sulfur dioxide Source: Consultants (Ecology and Environment, Inc., United States) 10
III. DESCRIPTION OF THE ENVIRONMENT
17. With an average per capita GDP of $567 (Y4,707) in 1999, Anhui Province is among the poorest one-third of the PRC’s 31 provinces. GDP per capita and rural per capita income in Anhui were only 73 and 86 percent of national averages, respectively. Within the province, 22 counties have been officially designated as poverty counties—10 of these are within the project area. The project area has a total population of over 17 million, with 80 percent classified as rural residents, and covers about 25 percent of the total land area of the province. The acid rain control area has a population of 10 million. An estimated 102,000 urban residents and 408,000 rural residents are considered absolutely poor in the project area (they earn less than $1 per day per capita). Over 5 million people in the project area can be categorized as low-income households (they earn less than $2 per day per capita).
18. The project area comprises about 25 percent of Anhui Province in the Yangtze River Basin. ADB and World Bank acid rain models show that the middle reaches of the Yangtze River are among the PRC’s areas most seriously affected by acid rain.3 The area includes the Anhui Province portion of the national Acid Rain Control Zone, and additional upstream areas. The zone, accounting for about 4 percent of the national acid rain control zone area, includes six prefectures: Chaohu, Huangshan, Maanshan, Tongling, Wuhu, and Xuanzhou. The proposed project area also includes Chizhou prefecture.
19. The Yangtze River runs from southwest to northeast across the area (Map). The surrounding river basin ranges from low-relief flood plain to rugged mountains to the west and southeast (notably the areas around Jiuhua and Huangshan Mountains). The climate is subtropical, supporting a broad range of agricultural activities. Timber harvesting has been largely discontinued in the project area.
20. The Yangtze River is a major transportation corridor, providing access for shipping from ports in the Shanghai area up to Wuhan City in Hubei Province. Key urban centers are (from up- to down- stream): Anqing, GuiChi (in Chizhou Prefecture), Tongling, Wuhu, and Maanshan. These cities are experiencing increasing urbanization. Large-scale industrial enterprises operate in and around these urban areas. Major industry sectors include power plants, iron and steel, copper and associated metal refining (smelters), cement, chemicals, and pulp and paper. These sectors account for most of the air emissions in the project area, with power plants and metallurgical industries accounting for the majority of SO2 emissions.
3 TA 5528-REG: Acid Rain and Greenhouse Gas (GHG) Emission Reduction in Asia, for $450,000, approved on 16 April 1993; and TA 5585-REG: Acid Rain Emission and GHG Emission Reduction in Asia Phase II, for $600,000, approved on 7 May 1997. 11
Figure 1: Acid Precipitation in Wuhu for 1999
60 50 40 Stn 1 1999 30 Stn 2 1999 20 10 Number of Days 0 days of days pH = days pH < days pH < days pH < rain or < 5.6 5 4.5 4
21. The PRC’s current national ambient class II standards glossary for annual average limits are 3 3 SO2: 60 microgram (µg) per cubic meter (m ), nitrogen oxides (NOx): 50 (µg/m ); and total suspended 3 particulate (TSP): 200 µg/m . In Tongling, annual averages for SO2 and TSP exceeded the national standard in 1999. Other air pollutants, including arsenic (As), cadmium (Cd), and lead (Pb), pose significant public health risks. Ambient monitoring is not routinely conducted for these pollutants, but emissions monitoring of large pollution sources provides some indication of potential health risks.
22. Acid rain occurrence poses immediate ecological and health risks. Monitoring data for rainfall pH (precipitation with pH less than 5.6, i.e., higher acidity) and acid rain frequency trends indicate a chronic acid rain problem in the project area. Rainfall pH data for Wuhu and Tongling are shown in Figures 1 and 2. Other cities in the project area have a less chronic problem, but still face risks to public health and local ecology due to other air pollutants and acid rain. Economic losses due to air pollution and acid rain amount to 3 percent or more of GDP per year, or as much as $100-149 million per year.4
4 Using 1995 data, a group of local scientists has conservatively estimated the damages caused by acid rain at about $100 million annually. Scientist from the Xinhua University have estimated the damages to be about $149 million annually based on 2000 data: $91 million agricultural production loss, $42 million health damage, and $16 million forest damage. Another study estimated overall economic losses due to SO2 emission and acid rain in the area of 3 percent of regional (area) GDP. 12
Figure 2: Acid Precipitation in Tongling in 1999
80 70 60 50 Station 1 40 Station 2 30 Station 3 20
Number of Days 10 0 days of days pH = days pH < days pH < days pH < rain or < 5.6 5 4.5 4
Source: Monitoring Data of Anhui Provincial Government 23. In 1999, 5,424,300 hectares were under cultivation in the project area. Xuanzhou City has the greatest area under cultivation and Maanshan City has the least. For the primary cities of concern (Anqing, Chizhou, Tongling, and Wuhu), the major crops under cultivation are rice, cotton, and wheat and the major livestock are oxen, sheep, and pigs. Agricultural losses are occurring due to air pollution and acid rain. Monitoring data are not collected to directly measure the losses, but the estimated annual agricultural production loss of $91 million (footnote 5) would be equivalent to about 1 percent of total annual agricultural production.
24. In addition, direct and indirect evidence indicates the scale of agricultural losses in Wuhu. The Wuhu Zhengxing Materials annually paid $7,230 (Y60,000) to neighboring villages for agricultural losses. The old Wuhu Limin Dye plant agricultural area damaged includes a 67-hectare (1,000-mu) plantation and a 33-hectare (500-mu) area of water. This damage resulted in a 60 percent reduction in harvest rates for 21 years. Water pollution caused by this enterprise is believed to have caused aquaculture production losses of 40 to 50 percent. The estimated agricultural losses over the 21-year operating period of this factory were $2.4 million (Y20.2) million, and the estimated loss in aquaculture production was $1.6 million (Y13.6 million).
25. Air pollutants such as TSP, particulate matter, SO2, and nitrogen dioxide (NO2) have adverse effects on human health, particularly respiratory morbidity and related mortality. Acute symptoms of particulate and SO2 pollution include restricted activity, respiratory illnesses, and exacerbation of asthma and chronic obstructive pulmonary disease. Chronic particulate and SO2 pollution is associated with bronchitis, chronic cough, respiratory illness, chronic obstructive pulmonary disease and asthma exacerbation, decreased longevity, and lung cancer. Children, the elderly, and people 5 with asthma and cardiovascular disease are most susceptible to SO2 exposure. The Project will help reduce all such air pollutants. The Project will also help to reduce a significant amount of wastewater, heavy metal, and solid waste, leading to increased health benefits.
5 A Beijing study shows that mortality rate increased by 11 percent for every doubling in SO2 concentration. A similar study 3 in Shenyang concludes that for every 100 µg/m increase in SO2, mortality increases by 2.4 percent. NO2 in the air forms nitrogenated organic compounds, which are mutagenic and carcinogenic. NO2 suppresses the immune system. 13
IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
26. The Project will reduce air pollution and acid rain, improve ambient environmental quality, abate indoor air pollution, and improve working conditions in the industrial enterprises through cleaner production promotion, improved energy efficiency, and waste control. Acid rain reduction and ambient environmental quality improvement will reduce damage to infrastructure and ecosystems, improve human health, and boost agricultural and forestry productivity. Abatement of pollution in the industries’ workplaces will significantly reduce damage to workers’ health, improve working conditions, and enhance industrial productivity. The Project will also support environmental improvement activities, including acid rain damage rehabilitation in ecologically protected areas.
A. Beneficial Environmental Impacts
27. The proposed subprojects will improve the environmental quality in Chizhou, Huangshan, Jiuhua, Tongling, and Wuhu. The primary beneficial impact will be to improve the ambient air and water quality by eliminating air pollution sources and reducing air and water pollution loads at large industrial sources. Each subproject has been designed to reduce SO2 emissions, reduce energy consumption, introduce cleaner production technology, reduce wastewater discharge, and decrease the quantity of solid waste generated. SO2 emissions will decrease and energy efficiency will increase through the replacement of outdated equipment and technology with modern equipment and clean production technologies.
28. The overall positive impacts that will occur in the four cities as a result of project implementation are shown on Table 3. The main environmental benefits are
(i) reduction of SO2 emissions by 31,000 t/yr, (ii) reduction of suspended particulate by 3,000 t/yr, (iii) reduction of carbon dioxide emissions by 500,000 t/yr, (iv) reduction of industrial wastewater by 15 million t/yr, (v) reduction of toxic metal emissions by 190 t/yr, (vi) elimination of phenol discharges upstream of drinking water intakes, and (vii) energy efficiency improvements equivalent to 4.5 percent reduction in coal consumption.
29. In addition to the preliminary IEE and environmental analyses, a Guassian Plume model (an air quality simulation model) was used to analyze the areal extent of SO2 impacts from the subproject sources for “with project” and “without project” scenarios. The modeling indicated that with the project, reduction of SO2 emissions will result in meeting the ambient air quality objectives in each subproject location. Air quality in the industrial facilities will also improve, and working conditions in general are expected to improve with project implementation.
30. Beneficial impacts are expected to be sustained over the lifetime of the projects (at least 20 years), and potentially will affect the entire project area, or an even larger geographic area (if long- range atmospheric transport is considered, beneficial impacts in terms of reduced acid rain could extend as far as the Republic of Korea and Japan). Air and water quality are expected to improve in each subproject area, directly affecting several thousand square kilometers. Considering long- range transport, the area improved could be more than 100,000 km2, with a population of tens of millions. Global benefits will include reduced greenhouse gas effects due to the reductions in CO2 emissions due to the cleaner production subprojects, and biodiversity benefits from environmental improvement and acid rain damage rehabilitation, particularly in the two ecological sites. 14
1. Cleaner Production Enterprises
31. The Anhui Tongdu Copper Limited Company subproject will reduce SO2 emissions from the plant by 17,000 t/yr and TSP emissions by over 1000 t/yr. Air emissions from the factory are expected to meet air emission standards. The Gaussian Plume modeling results were compared to Class III ambient air standards because these plants are in an industrial area. Currently, class III standards are achieved only 950 meters away from Tongling Jinchang Smelter. After the subprojects are implemented, class III standards are achieved within the Tongling Jinchang Smelter plant area. In addition, particulate and heavy metal emissions will be substantially reduced. Heavy metals remain in the air longer than SO2 and particulates, so the reductions of heavy metal emissions is likely to improve air quality on a wider area than was predicted by the Gaussian Plume modeling.
32. Energy consumption will be reduced significantly. These energy saving measures indirectly, but significantly, reduce energy consumption related pollutants. Heavy metal pollutant loads in wastewater will decline by over 95 percent, and wastewater discharge standards will be met. Additionally, use of fresh water will be reduced substantially since 95 percent of the process water will be recycled. Overall, less energy will be consumed and less slag, dust, wastewater, and waste gas will be generated.
33. The Chizhou Non-Ferrous Metals Group Company subproject will have a positive impact on the water quality and water availability in Chizhou City. The proposed project will substantially decrease the quantity of SO2 emitted into the air. At least 6,000 t/yr less of SO2 will be emitted. Emissions of lead and arsenic will be reduced by 18 and 2.87 t/yr, respectively. Although the sediments of the Qiupu River are contaminated with heavy metals, the water quality should improve through the decrease in the pollutant load. Additionally, the amount of wastewater discharged will decrease by more than 500,000 t/yr.
34. The Gaussian Plume model was used to determine the extent of the effect of SO2 with and without implementation of the Chizhou Non-Ferrous Metals Group Company subproject. The model results were compared to class II ambient air standards because the plant is in a residential urban area. Currently, concentrations reach class II standard concentrations only 1,420 meters from the smelter and, after implementation of the subproject, these standards will be achieved at the smelter itself.
35. Table 3 summarizes the changes in pollutant loads in Wuhu City from the implementation of the four proposed subprojects in the city. SO2 emissions will decrease in Wuhu by more than 10,000 t/yr, and TSP emissions by 3000 t/yr. Phenol discharges that were threatening the drinking water supply will be eliminated.
36. The Gaussian Plume model was used to determine the areal extent of the effect of SO2 and TSP emissions before and after implementation of the Wuhu Zhengxing Materials Limited Company (WZM) and Wuhu Hengxin Copper Group Company (WHC) subprojects. This analysis does not evaluate the impact of any other source on air quality; therefore, the results of the model do not predict the air quality at any location, only the contribution from an individual point source. For Wuhu, the model results were compared to class II ambient air standards because the plants are in residential urban areas. According to the model, due to emissions from WZM, class II ambient air standards are reached 4.4 kilometer (km) from the plant. TSP levels currently reach class II levels 1 km from the plant. After implementation of this subproject, SO2 concentrations from WZM will reach class II standards for both SO2 and TSP at the plant itself. The emissions from WHC also were 15 modeled. Currently, class II standard concentrations are reached approximately 1 km from the plant; after implementation of the subproject class II standards will be achieved at the plant. Although metals emissions stay in the air longer than particulates, air quality with respect to metals will improve at least within 1 km of the WHC plant.
37. Water quality in the Yangtze River and its local tributaries will improve due to the reduction of contaminants in wastewater discharge. At WZM, discharge of phenol and cyanide in the wastewater will be eliminated, and discharge of oil and suspended solids will be reduced by over 98 percent. The relocation of the Wuhu Feiying and Wuhu Limin factory will eliminate wastewater discharges from the existing sites upstream of the Wuhu Water Plant No. 1 intakes. The new cleaner production technologies to be used at the new Wuhu Felying Wood Chemicals Limited Company site will eliminate key pollutant emissions and substantially reduce wastewater discharges. At the new factory, most solid wastes will be recovered and reused. The net reduction in pollutants in wastewater discharges will be substantial. Additional benefits of relocating these two plants include eliminating air and water pollution sources in a residential area with schools. As a result, local residents will experience improve air and water quality. WHC currently produces the largest quantity of wastewater contaminated with heavy metals in Wuhu. Wastewater discharges will be reduced by 1.3 million m3/yr. Heavy metal pollution from both wastewater and emissions will be significantly reduced.
2. Environmental Improvement and Acid Rain Damage Rehabilitation Entities
38. The Huangshan Tourist Group Company subproject will improve the ability of the authorities at Huangshan to respond to and extinguish forest fires. The pollutant load to groundwater and surface water will be reduced by the additional wastewater treatment plants. Air quality and visibility will improve through the shift from liquefied petroleum gas (LPG) and kerosene to electricity and the upgrading of the garbage burners. The proposed lined landfill will protect groundwater resources from contamination. Implementation of the Jiuhua Tourism Group Company subproject will improve water quality in the Jiuhua River by reducing effluent discharges. In addition, drinking water will be available in the districts. The garbage burner will reduce the volume of solid waste going into to the existing landfill and therefore lessen the growth of nonpoint sources of pollutants for surface and groundwater within the protected area.
3. Overall
39. The Project can generate the following main environmental benefits: (i) reduced mortality in sensitive populations (asthmatics and others with preexisting respiratory diseases); (ii) reduced morbidity among all residents (with corresponding increases in productivity and reduced expenditure on medical care and mitigation); (iii) increased opportunity for outdoor activities that are sensitive to ambient air quality (recreation and some productive enterprises); and (iv) greater potential to attract clean industries into the area (tourism and knowledge-based industries), thereby enhancing the cities’ development potential. In addition, promoting economic growth through investment on cleaner production, technology transfer, environmental clean-up, acid rain damage rehabilitation, and enterprise restructuring will contribute to poverty reduction. Substantial benefits will apply at the subproject enterprise level and provincial level from institutional strengthening of environmental management capacities. 16
Table 3: Estimated Pollution Reductions from Cleaner Production Subprojects
Pollutant ATC CNM WFW WHC WSC WZM Total or Average Percentage Emissions (reduction due to Project) SO2 (t/yr) Urban Area Emissions before 38,693 10,273 22,800 71,766 Project (1998)a Reduction due to Project 14,890 6,040 1,372 1,952 4,533 2,545 31,332 Urban Area Emissions after 23,803 4,233 12,398 40,434 Project Reduction at Subproject 83% 96% 98% 59% 91% 62% 82% Source Reduction in Urban Area a 38% 59% 46% 44% CO2 (t/yr) Urban Area Emissions before 3,595,387 1,370,981 5,641,442 10,607,810 Project (1998) a Reduction due to Project 92,928 40,747 109,463 15,368 40,480 177,819 476,805 Urban Area Emissions after 3,502,459 1,330,234 5,298,313 10,131,006 Project a TSP (t/yr) Urban Area Emissions before 28,927 11,030 45,368 85,325 Project (1998) a Reduction due to Project 1,604 328 592 858 328 1,240 4,950 Urban Area Emissions after 27,323 10,702 42,350 80,375 Project a NOx (t/yr) Urban Area Emissions before 12,992 4,954 20,386 38,333 Project (1998) a Reduction due to Project 336 147 396 56 146 643 1,723 Urban Area Emissions after 12,657 4,807 19,146 36,610 Project a WASTEWATER (reductions due to Project) Total Mass (t/yr) 5,128,900 511,800 624,000 1,360,760 1,350,000 6,096,000 15,071,460 COD 713 1471 288 2,472 BOD 574 143 717 SS 422 126 4,379 4,927 Phenol 60 2.67 89 152 Arsenic 177.8 2.87 181 Lead 18 18 SOLID WASTE (reductions due to Project) Coal Use (t/yr) Urban Area Consumption 1,225,700 467,380 1,923,219 3,616,299 Before Project a Equivalent Reduction due to 31,680 13,891 37,317 5,239 13,800 60,620 162,547 Project Urban Area Consumption after 1,194,020 453,489 1,806,243 3,453,752 Project a Average Sulfur Content of Coal 1.00% 1.06% 1.50% 1.50% 1.50% 1.50% ATC:Anhui Tongdu Copper Limited Company ; BOD=biological oxygen demand; CNM=Chizou Non-Ferrous Metals Group Company; COD=chemical oxygen demand; CO2=carbon dioxide; NOx=nitrogen oxide; SO2=sulfur dioxide; SS=suspended solids; t/yr=tons per year; TSP=total suspended particulates; WFW=Wuhu Felying Wood Chemicals Limited Company; WHC=Wuhu Hengxin Copper Group Company; WSC=Wuhu Shangjiang Chemicals Limited Company; WZM=Wuhu Zhengxing Materials Limited Company a Figures are given by city, hence only one entry is given for subproject enterprises in Wuhu. Source: Consultants (Ecology and Environment, Inc., United States) 17
B. Negative Environmental Impacts
40. Most negative impacts that will result from the proposed subprojects will be minor and short- term in nature and will last only during the construction period. During the construction phase of each subproject, fugitive dust emissions will increase as excavation and construction activities are completed. Air emissions from construction equipment will result in a short-term decline in localized air quality. Noise levels near the construction sites will also increase during construction. Minor, short-term disruptions in traffic flow will occur during construction near roads and highways. Increased soil erosion and sedimentation of local streams and storm sewer systems may occur as a result of construction activities. In addition, tourism at the protected areas may suffer some short- term negative impacts as traffic congestion and air pollution increase during construction and the aesthetic character of the protected areas will be diminished during this phase.
41. At Anhui Tongdu Copper Limited Company, noise levels will increase and will exceed standards at certain locations. The volume of smelting furnace slag will increase to 322,000 t/yr although the boiler slag will decrease by 1,455 t/yr. However, this waste is relatively harmless and will be used as road construction material. Additional solid wastes generated by the modifications at this plant will be neutralization slag from the wastewater treatment plant and sulfur slag from the waste acid treatment plant. Chizhou Non-Ferrous Metals Group Company will generate an additional 18,111 t/yr more solid waste through implementation of this project. Approximately two thirds of this waste will be sludge from treating recycled process water, and approximately one third will be gypsum, which could be to reused as a construction material.
42. Potential negative impacts of relocating the two factories, Wuhu Feiying Wood Chemical and Wuhu Limin Dye Plant, are that any residual waste in these locations could leach into groundwater or contaminate surface water runoff. If any volatile chemicals remain uncontained, emissions could impact local residents or anyone who trespasses on the site. In addition, residual contamination in the soil and groundwater could affect the type of development that can occur at the site. Environmental rehabilitation plans have been drafted for both sites.
43. At Huangshan and Jiuhua, the most significant adverse environmental impacts will be during construction. Impacts will include noise, waste gas, and additional domestic and solid waste from the construction personnel. For Jiuhua, any land area to be affected is outside the protected area or is on previously developed land.
44. Operation of each subproject will also have minor long-term negative impacts that will typically affect the area immediately in the vicinity of the project sites. These long-term impacts typically will increase noise, air emission, and/or odor levels near the project site. Table 4 lists the adverse environmental impacts expected from construction and operation of each of the subprojects, and proposed measures to mitigate those impacts.
C. Mitigation Measures
45. To lessen the adverse environmental impacts associated with the subprojects, several mitigation measures have been incorporated into the design, construction, and operation of the facilities. Table 4 lists proposed mitigation measures that will partly offset the impacts. The mitigation measures are divided into construction and operational measures.
46. Most the proposed construction mitigation measures will restrict harmful construction practices, but will have significant additional costs to the subproject. Likewise, many of the proposed 18 operational measures constitute good management practices and will not add substantially to the costs of the subproject. In addition, most of the operational measures suggested in Table 4 that would require the outlay of additional funds have already been incorporated into the designs of the subprojects. 19
Table 4: Adverse Impacts and Mitigation Measures
Impacts Mitigation Measures A. Anhui Tongdu Copper Limited Company 1. During Construction Fugitive dust emission during construction. Construction sites will be sprayed with water. Solid waste from building demolition and waste soil. Send to landfill. Disruption of factory appearance and vegetation. Plant native trees and other plants resistant to SO2 and dust. Influence on transportation inside the smelter. Add a new paved 4.5 m wide, 400 m long road.
2. During Operations Item Source Waste Waste Gas Smelting Flue gas containing Electrostatic precipitators for dust removal, double Furnaces SO2, dust conversion and double absorption process for SO2, Feed port, slag Flue gas containing gas collection hoods, double conversion and double Port, copper SO2, dust absorption process for SO2, Drainage spout Acid making SO2 Double conversion and double absorption process Equipment Feed port and belt Dust Bag house Transfer station Waste Water Acid making Waste acid Treated at waste acid treatment station Equipment Wastewater Arsenic Double neutralization to remove arsenic Solid Waste Settling furnace Slag containing silicon Sold after hardened, or dried dioxide and iron Wastewater and Sulfur residue and Store in warehouse, solidify pollutants in slag, recover metals waste acid neutralization residue treatment Noise Noisy equipment Sound insulating and noise absorption material to be used in construction
B. Chizhou Non-Ferrous Metals Group Company 1. During Construction Fugitive dust emission during construction. Construction sites will be sprayed with water and surrounded with fences to prevent the spread of dust. Noise disturbance during construction. Building insulation can decrease the influence of noise to the outer environment. Disruption of city appearance and vegetation. During renovation, attention will be paid to the protection of existing planted area. Disruption of factory traffic. Pipeline laying should be undertaken in sections.
2. During Operations Item Source Waste Waste Gas Smelting furnace Waste gas Dust removal and produce sulfuric acid double conversion and converter containing dust and and double absorption unit SO2 Refining furnace Dust Dedusted in Venturi scrubber Waste Water Acid- Acid wastewater and Treated at new wastewater treatment plant Manufacturing waste acid System containing sulfuric acid, arsenic, fluoride and SS. Solid Waste Impoverished Water-granulated slag For sale Electrical Gypsum For sale furnace Sulfured slag Recover Arsenic Wastewater and Neutralized slag Piled waste acid treating process. 20
Impacts Mitigation Measures Noise Noisy equipment Muffler will be installed. Soundproof cover, blower house, and air compressor will be built.
C. Wuhu Felying Wood Chemicals Limited Company 1. During Construction Fugitive dust emission during construction. Construction sites will be sprayed with water. Noise disturbance during construction. Construction will be conducted during daylight hours. Influence on traffic. Transportation should avoid rush hour. Construction waste. Send to landfill. Disruption of factory appearance and vegetation. Trees will be planted along roads and grass in the empty land between production houses. Special vegetation will be planted in the front of the plant
Impacts During Operations Mitigation Measures Item Source Waste Waste Gas Formaldehyde Tail gas containing Tail gas will be used as fuel in boiler. Workshop methane, carbon monoxide, methanol hydrogen, formaldehyde, oxygen, etc. ACR ACR dust Spray drying process and high efficiency bag deduster Waste Water Sanitary waste COD, BOD Treated at wastewater treatment plant ACR and Polymers Pretreated with flocculent and then treated at wastewater Formaldehyde treatment plant workshop Solid Waste Waste catalyst Recovered and reused Domestic Waste Landfilled Sludge Phenols, aldehydes, Stored on-site temporarily in lined and covered area and esters landfill at hazardous waste landfill Noise Noisy equipment Low noise equipment, vibration isolation pad, mufflers on air compressors, noise protection equipment, and vegetation around the facility
D. Wuhu Hengxin Copper Group Company 1. During Construction Fugitive dust emission during construction. Construction sites will be sprayed with water and surrounded with fences to prevent the spread of dust. Noise during construction. Construction will be undertaken during daylight hours. Influence on transportation inside the factory. New road with 6 m wide surface should be added.
2. During Operations Item Source Waste Waste Gas Offgas from Kaldo SO2, arsenic, dust Electrostatic precipitator furnace Offgas from SO2, arsenic, dust Bag filter anode furnace Offgas from boiler SO2, dust Quick lime, water for absorption, water film scrubber Acid gas in the Acid gas Acid absorption tower purification Waste Water Domestic and COD, BOD, waste Biochemical treatment and discharge to Yangtze River after Industrial oil, phenol, treatment wastewater lubricant, and emulsion liquid Solid Waste Slag and residues from sewage treatment Slag for sale; metals recovered, or copper-rich residues will be reused in smelter Noise Oxygen making unit, air compressor, Mufflers and use of sound insulating materials centrifugal ventilator, exhaust fan, etc. 21
Impacts Mitigation Measures E. Wuhu Shanjiang Chemicals Limited Company 1. During Construction Fugitive dust emission during construction. Construction sites will be sprayed with water. Noise disturbance during construction. Use low noise equipment, operate noisy equipment only during certain hours, and use sound protection equipment and antivibration devices. Disruption of factory appearance and vegetation. Revegetate. 2. During Operations Item Source Waste Waste Gas Membrane Chlorine and brine Discharge through alkali absorption in the brine tower process caustic tower wastage soda Liquid chlorine Liquid chlorine Most waste chlorine recycled in same section And hydrochloric Acid refining Chlorinated Chorine gas Alkali liquid absorption. polyethylene Dust Dust collection to achieve standard Industrial boiler Flue gas, SO2, NOx Cyclone scrubber and Venturi water film scrubber Waste water Ion-film alkali Sodium chlorinate, Wastewater treatment acid or alkali Caustic soda unit Acidic wastewater Vinyl chloride deacidification, mercury exclusion, and chlorine containing dilute neutralization production hydrochloric acid workshop mercury, COD, SS, CPE Polyethylene and Acidic wastewater Neutralization and treated at wastewater treatment plant similar containing dilute production lines hydrochloric acid, caustic soda, sodium chlorinate Domestic and lab COD, BOD Biochemically treated at wastewater treatment plant waste water Solid waste Wastewater Brine mud, slag, For sale after dewatered Treatment plant slurry mud Boiler house Coal ash Will be used to make bricks Noise Noisy equipment Use low noise equipment, sound protection equipment, antivibration devices, and plant trees at boundaries of factory
F. Wuhu Zhengxing Materials Limited Company 1. During Construction Fugitive dust emission during construction. Construction sites will be sprayed with water. Disruption of factory appearance and vegetation. Trees will be planted along the two sides of main roads, and cold-resistant sod swale will be planted in the blank area. Noise disturbance during construction. Construction will be conducted during daylight hours. Influence on transportation inside the factory. Construct 8 m wide and 4 m wide paved roads.
2. During Operations Item Source Waste Waste Gas Sintering machine SO2, dust Use low sulfur coal and use surplus ammonia from coking process to remove SO2 Liquid iron Dust Liquid iron pretreatment and bag house deduster Treatment Blast furnace gas Dust Bag house Waste Water Domestic COD, BOD Biochemically treated at wastewater treatment plant wastewater Cooling water Filtered and recycled Water pressure test, cement lining, and Recycled Tube wall grinding Blast furnace gas Gas wash water Preliminary wastewater treatment and recycle Coking Sewage Recycle or pretreat, biochemical treatment, denitrification, and final chemical treatment 22
Impacts Mitigation Measures Solid Waste Foundry center Waste sand and dust Transported to outside for comprehensive use Sewage Sludge Transported to outside for comprehensive use after filtered treatment plant Noise High noise equipment Noise silencer, sound proofing, violation buffering and noise barriers will be applied
G. Huangshan Tourist Group Limited Company 1. During Construction Removal of vegetation and soil. Covering of vegetation with waste rock and soil. Revegetate at another location – 1 ha for every ha lost. Endangered plant species. Transplant trees and plants that will be impacted. Fence known sensitive species. Soil erosion. During construction, all areas will be controlled to minimize effects to the terrain – (i) minimize time where soil is exposed on side slopes; (ii) provide retaining walls; (iii) construct trenches for water drainage; (iv) do not allow (a) explosions, (b) construction during the rainy season, or (c) storage of construction equipment outside of the construction area. Domestic wastewater. Temporary toilets will be collected and waste treated biologically, with no discharge to local water sources. Pests. All wood materials will be inspected for pine eel worm. Dust from construction activities. Best management practices will be employed. Fire. Use of electric and gas welding will be minimized. Noise. Best management practices will be employed.
2. During Operations Item Source Waste Waste Gas Wastewater Dust, SO2, chlorine Select a furnace with pollution control devices that will treatment plant minimize pollutant emissions. Odor control design according incinerator to national and local standards and approved by local environmental protection bureau Waste Water Wastewater Domestic sewage Treated and discharged treatment plant Solid Waste Wastewater Sludge Treat and use as fertilizer on the outskirts of the scenic area treatment plant Noise Pump stations, water purification Use of sound proofing materials in building, double layered company glass for windows
H. Jihua Tourism Group Company 1. During Construction Removal of vegetation and soil. Revegetate where possible. Endangered plant species. Transplant trees and plants that will be impacted. Fence known sensitive species. Soil erosion. Revegetate where possible. Domestic wastewater. Treat temporarily in septic tanks, pile collectively, and transport to landfill at regular intervals. Dust from construction activities. Best management practices will be employed. Noise. Use noisy equipment only away from residential areas.
2. During Operations Item Source Waste Waste Gas Wastewater Dust TSP emissions controls treatment plant incinerator Sewage pump Odor Odor controls designed according to national standards and stations, approved by local environmental protection bureau aeration tank, condensation tank Waste Water Wastewater Domestic sewage Treated and discharged; primary and secondary treatment treatment plant required 23
Impacts Mitigation Measures Incinerator Wastewater Biochemically treated at Kecun Sewage Treatment Plant
Solid Waste Wastewater Sludge Treat and use as fertilizer on the outskirts of the scenic area, treatment plant depending on the metals concentrations Garbage Sludge Burn and fill treatment station Garbage filling Sludge Treat with the antifiltering method Station Noise Pump stations, water purification Use sound proofing materials in building. Plant trees and Company vegetation for sound reduction. ACR=acrylate polymer; BOD=biological and ecological demand; CPE=chloridize polyethylene; COD=chemical oxygen demand; ha=hectare; m=meter; NOx=nitrogen oxide; SO2=sulfur dioxide; SS=suspended solids; TSP=total suspended particulates. Source: Consultants (Ecology and Environment, Inc, United States)
V. FINDINGS AND RECOMMENDATIONS
A. Economic Assessment
47. A detailed economic cost-benefit analysis has been completed for each project component. The financial costs associated with constructing and operating the proposed subprojects were weighed against their financial, economic, environmental, and social benefits. Standard economic internal rates of return (the discount rate at which the benefits of the subproject would outweigh the costs) range from 18.2 to 33.2 percent.
B. Social Assessment
48. To solicit the viewpoints, opinions, and suggestions of local residents and workers, governments, social organizations (nongovernmental and community-based organizations) a series of meetings and workshops were held. Public opinion surveys were completed for each proposed subproject. Most of the people surveyed felt that the proposed subprojects would have a positive impact on the local community.
49. In addition, individual interviews and focus group discussions were conducted to solicit opinions regarding the overall environmental quality in the project area, whether interviewees supported the proposed Project, and whether they felt the Project would benefit the environment and/or improve their quality of life. A special study to address gender concerns related to environmental awareness is being undertaken.6 In addition, a questionnaire was distributed to 200 households. The questionnaire focused on determining health impacts of air pollution and acid rain, evaluating the social demographics, assessing the current environmental quality of the area, and assessing the willingness of local residents to pay for improvements in environmental quality. The results of this survey are summarized in Appendix 1.
6 A special study is being undertaken as part of TA 5889-REG: Gender and Development for $850,000 approved on 23 December 1999. 24
V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PROGRAM
50. As part of the environmental process, each subproject has generated an environmental management and monitoring plan to ensure that proper environmental controls and monitoring are undertaken at all times during construction and operation of each subproject. In the plans, authority for carrying out the environmental compliance monitoring is assigned, staff and equipment requirements are assessed, and the responsibilities of the authorized agencies/departments are defined. The overall environmental performance targets are to meet designated ambient air and water quality standards in the subproject area (class II air and water quality at the cleaner production enterprises; class I air quality and class I or II at the ecological sites).
51. Monitoring and mitigation costs will be borne by the subproject entities, financed either through the ADB loan or self-funded. Direct environmental protection and monitoring costs have not been quantified for each subproject, but are expected to range from less than 2 percent to more than 43 percent, (Table 5). The average environmental protection and monitoring cost is about 23 percent of the total subproject cost.
Table 5: Cost Estimation of Environmental Protection and Monitoring
Investment on Environmental Static Investment Name Protection Percentage (Y10,000) (Y10,000) ATC 57,058 19,112 33.5 CNM 17,984 5,097 28.3 WFW 31,930 564 1.8 WHC 19,339 882 4.6 WSC 38,045 8,573 22.5 WZM 39,981 4,550 11.4 HTS 26,026 7,727 29.7 JTS 16,094 7,064 43.9 Environmental Monitoring 4,263 4,263 100.0 Improvement Total 250,720 57,832 23.1 ATC=Anhui Tongdu Copper Limited Company; CNM=Chizhou Non-Ferrous Metals Group Company; JTS=Jihua Tourism Group Company; HTS=Huangshan Tourist Group Limited Company; WFW=Wuhu Felying Wood Chemicals Limited Company; WHC=Wuhu Hengxin Copper Group Company; WSC=Wuhu Shangjiang Chemicals Limited Company; WZM=Wuhu Zhengxing Materials Limited Company Source: Consultants (Ecology and Environment, Inc., United States)
52. Table 6 summarizes the key points of the environmental management and monitoring plans for each subproject, including recommended staffing levels for subproject environmental, health, and safety personnel. Appendix 2 summarizes monitoring requirements. Compliance monitoring by enterprise staff should be conducted on a quarterly basis; and more frequently for certain parameters. Monitoring results will be submitted via written reports to the local EPB on a quarterly basis; the Anhui EPB and the project management office will also receive copies of these reports for reporting to ADB. Local EPBs will conduct compliance inspections one to two times per year; inspections will also be conducted without prior notice. Inspection reports will be submitted to Anhui EPB and project management office for reporting to ADB. 25
Table 6: Summary of Environmental Management and Monitoring Plans
Recommended EHS Responsibilities Staffing Anhui Tongdu Copper Limited Company EHS director plus support staff • Conduct training • Implement all pollution control measures for subproject Each workshop: 1 part-time technician • Supervise implementation of environment protection measures. • Environmental monitoring
Chizhou Non-Ferrous Metals Group Company EHS Section: 1 manager • Implement the national and local environmental protection 2 technicians laws and regulations. 1 support staff • Ensure all practices conform to environmental protection regulations Monitoring station: 1 director • Develop and implement an environmental protection plan 3-5 monitoring staff • Conduct training 1-2 support staff • Perform environmental protection scientific research and academically exchange • Conduct environmental monitoring • Constitute the control standard of pollution discharge and environmental protection units operation, exam and record regularly
Wuhu Feiying Wood Chemicals Limited Company EHS section: 1 factory-level • Ensure all practices conform to environmental regulations Manager • Implement all pollution control measures for subproject 2 technicians • Supervise implementation of environment protection measures or wastewater treatment facility Monitoring station: 5-8 technicians and • Environmental monitoring Support staff • Formulate annual environmental reports • Conduct training
Wuhu Hengxin Copper Group Company Total EHS staff: 28 including 4 full- • Ensure safety of production time EHS staff • Manage safety and environmental personnel • Supervise operations of wastewater treatment plant Environmental protection and revegetation • Supervise revegetation team • Ensure all practices conform to national and local environmental protection regulations Each production unit: 1 full-time EHS staff • Conduct training • Establish and implement an environmental monitoring program • Cooperate closely with local EPBs • Supervise implementation of environmental protection measures and pollution treatment facility 26
Recommended EHS Responsibilities Staffing Wuhu Shangjiang Chemicals Limited Company • Implement the national and local environmental protection EHS Section: 5 staff laws and regulations • Ensure project meets environmental standards Wastewater • Compile environmental protection plans and organization treatment plant: 11 operations and to perform monitoring staff • Perform environmental protection scientific research and academic exchange • Establish pollution discharge standard for the environmental protection unit and subproject, and assure that the unit monitors and records the discharges regularly. • Maintain complete pollutant discharge history • Conduct routine environmental monitoring • Conduct training
Wuhu Zhengxing Materials Limited Company EHS Section: 2 to 5 staff • Conduct routine environmental monitoring • Ensure project meets state and local environmental Managers trained in environmental standards protection and safety in each workshop • Assist with coordination between local EPBs and the plant • Supervise pollution treatment facilities Contract Monitoring as necessary • Conduct training Huangshan Tourist Group Limited Company Environment management and monitoring • Disseminate environmental protection knowledge station will be established • Supervise implementation and operation of environmental projects Existing environment protection office will • Organize environmental monitoring, pollutants monitoring, be expanded to 15 and environmental statistics • Coordinate between local EPBs and the protected area
Jihua Tourism Group Company Jiuhua street • Supervise operation of environmental protection facilities sewage treatment • Ensure pollutant discharges meet environmental standards project: 1 administrator, • Cooperate closely with local EPBs, and work with local 5 staff EPBs to address public comments.
Kecun district Project: 2 administrators, 15 staff
Solid waste treatment project: 5 administrators, 30 staff EHS=environmental, health, and safety; EPB=Environmental Protection Bureau Source: Consultants (Ecology and Environment, Inc., United States) 27
C. General
53. The Project will generate the following main environmental benefits: (i) reduced mortality in sensitive populations (ii) reduced morbidity among all residents (iii) increased opportunity for outdoor activities that are sensitive to ambient air quality and (iv) greater potential to attract clean industries into the area (e.g., tourism), thus improving the cities’ development potential.
54. The major quantifiable environmental benefits of the Project are reducing SO2 emissions by at least 31,000 t/yr; reducing of suspended particulates by at least 3,000 t/yr; reducing carbon dioxide emissions by at least 500,000 t/yr, reducing industrial wastewater by over 15 million m3/yr, reducing of toxic metal emissions by over 190 t/yr; eliminating phenol discharges upstream of drinking water intakes, and improving energy efficiency equivalent to a 4.5 percent reduction in coal consumption. Corollary benefits are associated with undertaking a coherent program to technologically restructure polluting industries into clean processes and to improve environment protection industries through more efficient operations and on-site wastewater treatment.
55. A social assessment was undertaken in the project area during the feasibility study stage. Results indicated that the Project is likely to have significant social benefits for the target population through improved health. Reduced restriction of activity days, medical expenses, and mortality benefit the poor most because they have higher health costs relative to their income. Children, the elderly, and those with asthma and cardiovascular diseases will benefit due to their susceptibility to air pollution. Health benefits accruing to the enterprise workers, of which at least 10 percent are classified as unskilled and receive low incomes, will also be higher due to the poor environmental working conditions currently existing in the enterprises. Gains in improved working environments can be maximized by raising awareness of occupational health and safety measures. The Project will also increase agricultural and forestry productivity, which is the main source of income for the rural poor. Visibility and the general aesthetic character of the region will also improve as a result of these projects. Consequently, the attractiveness of this region to tourists may increase.
56. Most negative impacts from the proposed subprojects will be minor and short-term in nature and will last only during the construction period of the subprojects
VII. CONCLUSIONS
57. The Project will provide major environmental benefits. Adverse environmental impacts from subprojects will be minimized by the selection of the technology and appropriate mitigation measures. Potential environmental impacts include those related to air pollution, degradation of water quality, noise pollution, solid waste, and plants. In each case the stresses, which cause the impact, and the receptors, the people and/or ecosystems, which will be studied, were studied. Wherever adverse impacts have been identified, rational and comprehensive mitigation measures are specified. Therefore, detailed environmental impact assessment or analysis is unnecessary.