Environmental Assessment Report

Project Number: 42011-013 October 2013

PRC: Urban Environmental Improvement Project

Prepared by Wuhan Project Management Office Province, PRC

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

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

Environmental Assessment Report

Summary Environmental Impact Assessment Project Number: 42011

Updated in October 2013

People’s Republic of : Wuhan Urban Environmental Improvement Project

Prepared by Wuhan Municipal Government for the Asian Development Bank.

The summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (as of 26 Aug 2013)

Currency Unit – yuan (CNY) CNY1.00 = $0.1622 $1.00 = CNY 6.1523

ABBREVIATIONS

ADB — Asian Development Bank AOX — absorbable organic halogen

BOD5 — 5-day biochemical oxygen demand CDM — clean development mechanism CNY — Chinese Yuan

CO2 — carbon dioxide CO — carbon monoxide COD — chemical oxygen demand

CODMn — permanganate index CSC — construction supervision company DO — dissolved oxygen EA — executing agency EHS — environment, health and safety EIA — environmental impact assessment EIRR — economic internal rate of return EMP — environmental management plan HEPB — Hubei Provincial Environmental Protection Bureau HCl — hydrogen chlorine

H2S — hydrogen sulfides FSR — feasibility study report GDP — gross domestic product IA — implementing agency IU — implementing unite LIEMC — loan implementation management consultant N — nitrogen

NH3 — ammonia

NH3-N — ammonia nitrogen

NOx — nitrogen oxides O&M — operation and maintenance P — phosphorus PAH — polycyclic aromatic hydrocarbon PCB — polychlorinated biphenyl PCDD — polychlorinated dibenzo-p-dioxin i

PCDF — polychlorinated dibenzofuran PMO — project management office POPs — persistent organic pollutants PPTA — project preparatory technical assistance PRC — People’s Republic of China PS — pumping station RP — resettlement plan SEIA — summary environmental impact assessment

SOx — sulphur oxides SS — suspended solids STP — sludge treatment plant TN — Total nitrogen TP — total phosphorus TSP — total suspended particle WEMC — Wuhan Environmental Monitoring Centre WMG — Wuhan Municipal Government WQM — water quality model WSTP — water supply treatment plant WUDDC — Wuhan Urban Drainage Development Co., Ltd. WWMP — Wuhan Wastewater Management Project WWSMP — Wuhan Wastewater and Stormwater Management Project WWTP — wastewater treatment plant

WEIGHTS AND MEASURES

℃ — degree Centigrade ha — hectare km — kilometer km2 — square kilometer m — meter m3 — cubic meter m3/d — cubic meter per day m3/s — cubic meter per second mm — millimeter mu — Chinese acre t/d — ton per day t/yr — ton per year

NOTE

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

CONTENTS

I. INTRODUCTION ...... 1 II. DESCRIPTION OF THE PROJECT ...... 3 A. Component of Sludge Treatment and Disposal ...... 1 B. Component of New Zone Lakes/Channels Rehabilitation and Pumping Station ...... 1 C. Component of Yangchun Lake Secondary Urban Centre Lake/Channel Rehabilitation ...... 2 D. Component of Institutional Strengthening and Capacity Building ...... 3 E. Policy Dialogue ...... 4 III. DESCRIPTION OF THE ENVIRONMENT ...... 6 A. Topography and Geology ...... 6 B. Climate and Rainfall ...... 6 C. Hydrology ...... 7 D. Ecological Resources ...... 8 E. Water Quality and Pollution ...... 9 F. Social and Economic Conditions ...... 11 IV. ALTERNATIVES ...... 13 A. With and Without Project Alternatives ...... 13 B. Alternatives in Sludge Treatment and Disposal ...... 14 C. Alternatives in Water Circulation among Lakes/Channels ...... 15 D. Alternatives in Lakes/Rivers Rehabilitation ...... 17 E. Alternatives in Pumping Station ...... 18 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 19 A. Positive Impacts and Environmental Benefits ...... 19 B. Mitigation Measures during the Design Phase ...... 20 C. Environmental Impacts and Mitigation Measures during Construction ...... 21 D. Environmental Impacts and Mitigation Measures during Operation ...... 24 E. Land Acquisition and Resettlement ...... 27 VI. ECONOMIC ASSESSMENT ...... 27 VII. ENVIRONMENTAL MANAGEMENT PLAN ...... 29 A. Environmental Management ...... 29 B. Environmental Monitoring ...... 29 C. Institutional Enhancement ...... 30 VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ...... 30 A. Public Participation during the Project Preparation Period ...... 30 B. Future Plans for Public Participation ...... 32 C. Project Information Dissemination ...... 32 IX. PROJECT RISKS AND ASSURANCES ...... 32 X. CONCLUSIONS ...... 33 B. Public Consultation ...... 82

C. Responsibilities and Authorities for Implementation ...... 84 D. Reporting and Supervision ...... 88 E. Work Plan ...... 90 F. Procurement Plan and Cost Estimates ...... 91 G. Mechanisms for Feedback and Adjustment ...... 91

Appendixes

1. References 2. Environmental Management Plan

I.INTRODUCTION

1. This summary environmental impact assessment (SEIA) is prepared for the Wuhan Urban Environmental Improvement Project (the Project) in the People’s Republic of China (PRC), under technical assistance 7177-PRC from the Asian Development Bank (ADB). The Project has three physical components and one institutional and capacity development component in the city of Wuhan.

2. Wuhan, the capital of Hubei Province, is located in the Central Region of the PRC at the confluence of the and Han Rivers. It is the biggest city in central PRC. In 2008, the municipality had a population of approximately 8.28 million, including more than 6 million inhabitants living in urban areas. Rivers and lakes are abundant (the surface water takes up about one quarter of the urban area), which largely set the urban landscape and development scenes.

3. Urban infrastructure provision in the city has not kept pace with rapid urbanization and industrialization over the past 20 years. Even though the municipality has been catching up with this lag, the urbanization has put a great pressure on the overloaded wastewater treatment facilities that caused the pollution and degradation of urban surface water. The pollution of the surface water has reached 56% of the rivers and 89% of the lakes. Water quality in Wuhan City and the Wuhan section of the Yangtze River has deteriorated significantly due to the increase in urban pollution and wastewater discharge, posing serious health threats to the public. To address Wuhan’s lack of adequate wastewater management and water resources protection, the Wuhan Municipal Government (WMG) is working on implementing the municipality’s strategic wastewater master plan for long term compliance with national environmental targets and aiming to treat 85% of urban wastewater by 2010.

4. The improvements in Wuhan wastewater collection system are significant in the past decade; however, they brought another environmental challenge of treating and disposing sludge from the existing wastewater treatment plants (WWTPs). The amount of sludge generated by the WWTPs1 has increased significantly, posing a large environmental challenge to Wuhan, similar to the cases in other PRC cities. Since Wuhan, one of the five biggest Chinese cities, is fairly advanced in the establishment of wastewater collection and treatment, it feels the pressure from the sludge challenge most acutely. There is an urgent need for a comprehensive and efficient solution to sludge treatment and disposal to release the pressure on urban land and almost overloaded and sprawling landfills.

5. Rapid urbanization also significantly restricted the natural flow of urban lakes and streams for serving the purpose of urban flood alleviation with a high priority. The combined action of pollution and silting due to urban activity and construction has blocked the natural hydraulic

1 657 t/d with a water content of 80% according to the statistics in 2008. 2 circulation of many urban channels and lakes, degraded water quality within the city lake systems, and was responsible for the disappearance of many lakes. Of the nearly 100 lakes existing in the middle of the 20th century, only 38 now remain in Wuhan City. Those lakes are a natural part of the ecological system that allows for necessary water circulation in the area and that also sustains the healthy condition of the lakes themselves. The lakes' water quality is currently measured at Class IV-V or worse. At the same time, this situation will continue to hinder new initiatives to promote sustainable urban development unless the water management issue is resolved. It is a key ecological and social issue to restore water quality and the circulation of lake systems, in addition to developing a comprehensive urban water resource management system to ensure environmental sustainability in Wuhan's new and old urban areas. The ongoing climate change will further exacerbate flood hazards. There is a need for a comprehensive urban water resource management to restore and improve urban water systems and environmental carrying capacities.

6. The Project is designed to (i) improve and solve the urgent problems of wastewater sludge treatment and disposal in Wuhan; (ii) develop integrated urban water resource management and environmental infrastructure in new urban development areas and city-wide; and (iii) restore the bio-system of rivers and lakes across the city.

7. The Project complies with the two main development agendas of "environmentally sustainable growth" and "inclusive economic growth" promoted in ADB's Strategy 2020 and is in line with and supports PRC's Country Partnership Strategy (2008-2010) for promoting efficient infrastructure, strengthening environmental management, and supporting inclusive growth and balanced development. The Project supports the Millennium Development Goal 7 by improving sanitation and the environmental sustainability of the City's urban development through appropriate treatment and disposal of wastewater sludge, and through lake rehabilitation. The Project addresses Wuhan's key master plan priorities in terms of sanitation, environment improvements, and urban development. The Project will support WMG in creating an enabling environment to ensure Wuhan achieves its objective of being recognized as a model environmental city in the PRC and in its use of urban environmental improvements to drive and sustain economic growth.

8. The Project is classified as Category A by ADB for the purpose of environmental assessment. This SEIA is based on four environmental impact assessment (EIA) reports in Chinese prepared by nationally certified EIA Institute.2 Meanwhile, this SEIA is prepared in accordance with both the PRC Environmental Impact Assessment Technical Guidelines and ADB’s Environmental Assessment Guidelines (2003).

9. The Project is the first ADB-financed project in the PRC with a specific focus on sludge treatment and disposal and has been designed to complement and enhance the development

2 Hubei Gimbol Environmental Technology Co. Ltd. 3 impacts from the earlier ADB funded Wuhan Wastewater Management Project (WWMP) and Wuhan Wastewater and Stormwater Management Project (WWSMP).

10. Due to delayed construction, complexity of project activities, change of conditions, macro-policy change, difficulties of resettlement issues, some works under this project cannot be completed as scheduled before loan closing date. To ensure the overall goal of closing the project before 2015 without impacting on the overall performance targets, with discussions and confirmation with ADB, municipal government and related government agencies, projects that have not yet started and fail to complete before the loan closing date will be cancelled out of this project.

II.DESCRIPTION OF THE PROJECT

11. The original Project consisted of four components, i.e. one sludge treatment and disposal component, two lakes/channels rehabilitation components, and one capacity building component. Some components also have subcomponents. However, in September 2013, some changes were made to the project scope, and subsequently approved by ADB. The changes in project scope to each project component are summarized in the following New Table below, along with expected changes to the originally assessed environmental impact for each project component. The change in scope does not include new components, but encompasses the following: (i) the re-location of the Wuchangbei sludge treatment plant (STP) from Tangzhunhu WWTP to the Luobuzui WWTP, and the exclusion of the Nantaizi STP and Hanku STP from the project scope (to be financed locally); (ii) the cancellation of rehabilitations of Longkou channel, Longxin channel, Zhujianxin channel and Heping channel (to be financed locally), (iii) an increase of dredging scope in Moshui lake from 270,000m3 to 500,000m3; and (iv) the cancellation of some subcomponents including artificial wetlands and eco-fisheries in Moshui and Nantaizi lakes (to be financed locally).

12. With exception of the re-location of the STP (which will have environmental impacts that were not identified under the original approved project) and the increase of sediment dredging from 270,000m3 to 500,000m3 in Moshui lake, no significant new or incremental impacts on the environment are anticipated.

NEW TABLE: Original project scope, and revised project scope (September 2013) Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact

Component I: Sludge treatment and disposal 255.74m 193.38m CNY CNY 1.1 Wuchangnan Sludge Sludge collected 98.71m Sludge collected 193.38m Name changed as Incremental Treatment Plant and treated with and treated with Wuchangbei impacts capacity of 40 capacity of 52 Sludge Treatment anticipated. A tons/day dried tons/day dried Plant (as a result of separate EIA sludge in sludge in Luobuzui new location) report has been Tangxunhu WWTP. WWTP. prepared for the Wuchangbei STP and has been approved by Hubei EPB.

1.2 Sludge Biogas utilization for 53.80m Cancelled - It’s now being Impact is Treatment Plant sludge drying with considered as BOT, eliminated due to capacity of 20 restaurant waste cancelled works tons/day dried will be treated to sludge in Sanjintan produce more WWTP biogas.

1.3 Nantaizihu Sludge A sludge lime 11.71m Cancelled - Impact is Treatment Plant stabilization plant eliminated due to with capacity of 10 cancelled works tons/day dried sludge in Nantaizihu WWTP 2

Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact

1.4 Modification and An improvement 91.52m Cancelled: sludge - Impact is Improvement of and upgrade of handling units, eliminated due to Existing Sludge sludge handling transport vehicles cancelled works Treatment and units, transport Adjusted: lab Transportation vehicles and other instruments for items at existing sludge analysis WWTPs repackaged from Erlangmiao WWTP to Luobuzui WWTP

Component II: Wuhan New Zone 2037.35m 2511.70m Lake/Channels Rehabilitation 2.1 Longyang Lake Dredging of 343.53m Dredging of 73.88m The amount of The impact is Rehabilitation 250,000m3, 243,000m3, dredging is reduced due to developing emergent plant reduced by cancelled works 31,800m3/d of 107,000 m2; 7,000m3. The and reduced artificial wetland, floating- leaved activities to be dredging amount. emergent plant plant 38,000m2; , cancelled will be 107,000m2, 48mu of artificial done by domestic floating-leave plant water grass; fund. 38,000m2, transportation submerged plant equipment; 2 434,000m ; Cancel: the work of 2 110,000m of Tang artificial wetland, Mountain greening, submerged plant, artificial water grass Tang Mountain 48mu, 275,100m2 3

Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact of wetland park, and greening, wetland 31.32t of ecological park, ecological fisheries, 167.02t of fisheries and benthonic animals, benthonic animals transportation equipment.

2.2 Moshui Lake Dredging of 272,800 151.00m Dredging of 162.86m Based on the The process as 3 3 Rehabilitation m , emergent plant 500,000m , revised Moshui well as the disposal 2 291,000m , emergent plant Lake Planning, the for the added 2 floating-leaved plant 291,000m , amount of dredging dredging is the 2 117,000m , floating-leaved plant increases by about same. The new 2 submerged plant 117,000m , water 230,000 m3. The added sediment 2 1,134,000m ; grass 82mu, activities to be will also be sent to artificial wetland transportation cancelled will be Sixin area for 3 43,000m /d, water equipment; done by domestic greening which will grass 82mu, and fund. not bring any new 26.27t of ecological Cancel: artificial env. risk. A new fisheries, 140.11t of wetland, EIA report is not benthonic animals, submerged plant, needed. transportation ecological fisheries equipment. and benthonic animals

2.3 Nantaizi Lake Dredging of 225,000 99.29.m Dredging of 124.63m The amount of Impact is reduced 3 3 Rehabilitation m , emergent plant 250,000 m , dredging increases due to cancelled 2 385,000m , emergent plant by 25,000 m3. The works. The 2 floating-leaved plant 385,000m , activities to be process for the

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Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact 106,000m2, floating-leaved plant cancelled will be added dredging is submerged plant 106,000m2 , done by domestic the same which will 588,000m2; artificial artificial water grass fund. not need a new EIA wetland 3,000m3/d, 120mu, ecological report. water grass 120mu, buffer zone water ecological buffer grass 167mu and zone water grass transportation 167mu, 17.26t of equipment ecological fisheries, Cancel: artificial 92.06t of benthonic wetland, animals, submerged plant, transportation ecological fisheries equipment. and benthonic animals

2.4 Longkou Channel 1,337 m channel of 44.45m Cancelled - It’s affected by the Impact is Rehabilitation dredging, slope “village-in-city eliminated due to protection, greening reconstruction” cancelled works and water program. The remediation activities to be cancelled will be done by domestic fund.

2.5 Longxin Channel 664 m channel of 25.55m Cancelled - It’s affected by the Impact is Rehabilitation dredging, slope “village-in-city eliminated due to protection, and reconstruction” cancelled works 5

Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact greening program. The activities to be cancelled will be done by domestic fund.

2.6 Zhujiaxin Channel 3,583 m channel of 214.89m Cancelled - It’s affected by the Impact is Rehabilitation dredging, slope “village-in-city eliminated due to protection, and reconstruction” cancelled works greening program. The activities to be cancelled will be done by domestic fund.

2.7 Zong Channel 3,100m channel of 155.43m 3,600 m channel of 386.20m The design scope Impact is reduced Rehabilitation dredging, slope dredging, slope is changed; due to cancelled protection, protection, The base treatment works greening, emergent greening. approach was plant, changed; Cancelled: floating-leaved Better landscaping; plant, submerged floating-leaved The resettlement plant, greening and plant, costs increase by Zonggang ship emergent plant, 100.91m. gate. submerged plant

2.8 Liantong Channel 5,072m channel of 329.09m 3,900m channel of 878.43m The design scope Impact is reduced Rehabilitation dredging, slope dredging, slope is changed; due to reduced

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Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact protection, protection, The base treatment scope of works emergent plant, greening, north approach was floating-leaved connection gate, changed; plant, submerged south connection Better landscaping plant, greening, gate and ecological The resettlement north connection treatment system costs increase by gate, south along roads. 315.44m. connection gate and Cancel: ecological treatment floating-leaved system along roads. plant, emergent plant, submerged plant. 2.9 Huoyan Channel 1,600m channel of 332.31m 1,500m channel of 356.09m Redesign Impact is reduced Rehabilitation dredging, slope dredging, slope according to the due to reduced protection, protection, greening new planning scope of works emergent plant, Cancel: floating-leaved floating-leaved plant, submerged plant, plant and greening emergent plant, submerged plant 2.10 Sixin Pumping Construction of 341.81m Construction of 529.59m No change. Station stormwater pumping stormwater station providing for pumping station a capacity of 105 providing for a m3/s, with phase 1 capacity of 105 installation of 35 m3/s, with phase 1 7

Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact m3/s installation of 35 m3/s

Component III: Yangchun Lake Secondary 995.41m 1011.13m Urban Center Lake/ Channel Rehabilitation 3.1 Yangchun Lake Recovery of 57.6 ha 894.21m Recovery of 57.6 ha 1011.13m No scope change No change. Rehabilitation of lake surface, of lake surface, The resettlement including: dredging including: dredging fee increases by (waters area (waters area 124.07m 57.6ha), ecological 57.6ha), ecological rehabilitation rehabilitation (waters area (waters area 57.6ha), artificial 57.6ha), artificial wetland (1), park wetland (1), park landscaping landscaping (23.68ha) (23.68ha)

3.2 Heping Channel Gongye 101.21m Cancelled - Impact is reduced Rehabilitaion Avenue—Shahu due to reduced Gang, 1,400 m scope of works channel of dredging, slope protection, walk way, aquatic planting, greening, bridges Component IV: Institutional Strengthening 20.47m 20.47m and Capacity Building

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Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact

4.1 Strengthening Implementation plan No change - implementation capacity is successfully adhered to with full compliance with ADB loan covenants and conditions.

4.2 Improving WUDDC Onsite sludge No change - operational management thickening achieves 20% dry solids content. Sludge treatment operations produce sludge in accordance with design specifications.

4.3 Enhanced pollution Reduction in No change - source control pollution incidents.

4.4 Improvements in Over 50% of No change - public awareness residents can recall awareness program content and claim to have been positively influenced by it. (sex disaggregated). 9

Component Component Scope and Cost Updated Component Scope and Remark Expected Estimate at Appraisal Cost Estimate Change to Impact Increase in awareness on how tariffs are restructured and existence of pro-poor measures.

4.5 Implementation of A water quality No change - advanced water model is developed, management systems calibrated and integrated into the surface water management system for controlling water flows and quality in the lakes and channels. Training study on point and non-point source pollution.

Total 3308.98m 3736.69m

13. Each of the components is described below. To tackle the complexity of this Project, the PPTA consulting team is made up of specialists on sludge treatment, drainage, sewerage, environment, wetland ecology, river hydraulics and engineering, socioeconomics, resettlement, financial management, and institutional strengthening.

 Component of Sludge Treatment and Disposal

14. To deal with the secondary pollution caused by the sludge from the existing WWTPs, the adjusted scope of the Project includes the construction of the Wuchangbei Sludge Treatment Plant (STP). The Wuchangbei STP is to be situated within the Luobuzui Waste Water Treatment Plant (WWTP), and is intended to treat sludge generated from the Erlangmiao WWTP, Shahu WWTP and Luobuzui WWTP. The treatment capacity of the Wuchangbei STP is designed to be 260 tons wet sludge per day. The heating steam for sludge drying will be supplied by the nearby Qingshan Power Plant. The cost for the construction of the Wuchangbei STP is estimated to be 130 million RMB.

15. The treated sludge from the Wuchangbei STP is intended to be disposed of as a forestry soil conditioner, and will not be used as the fertilizer for crop farming activities. The Chenjiachong Landfill will be used as a backup site for disposal of extra sludge.

 Component of New Zone Lakes/Channels Rehabilitation and Pumping Station

16. This component consists of three themes: (i) lakes ecological rehabilitations including dredgingand aquatic vegetation planting ; (ii) channels comprehensive rehabilitation, including revetment restoration, water gate construction, and riverside landscaping; and (iii) Sixin Pumping Station (PS), with a capacity of 35 cubic meter per day (m3/d). In addition, the component also covers the Tang Mountain restoration to control and mitigate its acidic soil and water pollution.

17. In order to re-construct the natural connection among rivers and lakes, the Project will improve the water circulation within six urban lakes (namely Longyang Lake, Nantaizi Lake, Moshui Lake, Beitaizi Lake, Sanjiao Lake, and Houguan Lake) via connecting lakes/channels with the and Yangtze River. There are three lakes and three channels included in the Project, i.e. Longyang Lake, Nantaizi Lake, Moshui Lake, Liantong Channel, Zong Channel, and Huoyangou Channel. The scope of detailed works is described in Tables 1 & 2.

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Table 1. Scope of New Zone Lake Rehabilitation (Lake) Control Dredging Aquatic Artificial Artificial Lake Area Volume Vegetation Weed Remark Wetland (ha) (m3) (ha) (ha) Longyang 178 243,000 0 57.9 3.2 Lake Moshui 376 500,000 0 154.2 5.44 Lake Nantaizi 444 250,000 0 137.3 6.4 Lake Ha = hectare, m3 = cubic meter. Source: Feasibility Study Report (FSR) for Wuhan New Zone Lakes/Channels Rehabilitation and Pumping Station, 2009; and revised FSR (September 2013)

Table 2. Scope of New Zone Channel Rehabilitation (Channel) Channel Length (m) Bottom Width (m) Remark Upgrading and construction of 2 Liantong Channel 3900 39 water gates Upgrading and construction of 1 Zong Channel 3600 50 water gate Huoyangou Channel 1500 37 New construction Source: Revised FSR, September 2013.

18. The water quality of the lakes/channels relevant to the Project will be ensured by implementing regular monitoring during operation, which is described in the EMP. Meanwhile, the water quality model (WQM) developed under prior ADB-financed Projects (Wuhan Wastewater Management Project and Wuhan Wastewater and Stormwater Management Project) will be adopted. The functions of the WQM in Hanyang area are: (i) long-term forecasting; (ii) decision making during emergencies; and (iii) algae bloom. The water is operated by the Wuhan EPB, the Urban Drainage Development Company, and the Water Resource Bureau. Continuous data on water temperature, pH, DO, NH3-N, and COD will be collected. The Wuhan Water Resources Bureau is responsible for decision making based on the results of model prediction. Moreover, the monitoring program included in the environmental management plan (EMP) will feed the data to the WQM. In case of emergency events, more frequent monitoring will be implemented as per the EMP.

 Component of Yangchun Lake Secondary Urban Centre Lake/Channel Rehabilitation

19. This component contains two subcomponents, i.e. (i) Yangchun Lake Park Rehabilitation 3 and Landscaping, (ii) Study on Pollution Control and Mitigation of Initial Stormwater Runoff.

20. It is proposed that a park be built around Yangchun Lake, with a total area of 91.82 ha (including water surface area of 57.61 ha). The works scope includes dredging (total amount of 250,000 m3), artificial wetland construction (one wetland with an area of 2.3 ha with a capacity of 10,000 m3/d), aquatic vegetation planting, restoration of ecological fishery and benthonic animals, and riverside landscaping.

21. A storage pond located in the southern green land of Yangchun Lake Park will be used to collect and pre-treat the initial runoff from No. 4 Main Street, Wuqing, and the area of Wuchang Railway Station. The total volume of the pond will be 15,650 m3 with a depth of 1.2 m. The pond will be separated into a sedimentation section supported by a sand and stone bed, together with an aquatic vegetation section. Regular monitoring will be carried out to evaluate the performance of pollution reduction.

 Component of Institutional Strengthening and Capacity Building

22. Although there is no physical works in this component, it is important to ensure that the WMG, WPMO, IA, WUDDC, and other stakeholders have the capacity to manage, operate and maintain all the components and subcomponents successfully and effectively, so as to achieve the goal of long-term sustainable water and wastewater management.

23. The Component includes three packages: (i) Project Implementation Management Consulting Services; (ii) Wastewater Operation and Maintenance Improvement and Sludge Treatment Supports; and (iii) Environmental Management and Public Awareness Campaign.

24. The objectives and the scope of the component include: (i) project implementation support, procurement and contract management; (ii) safeguards management and monitoring; (iii) optimization of the performance of all of Wuhan’s existing WWTPs including sludge units; (iv) wastewater tariff review to reflect the cost of sludge management; and (v) water quality modeling for the lakes and channels in Hanyang Area.

25. Regarding the improvement of WWTPs operational performance, the Project will strengthen the operational management capacity of the Wuhan Urban Drainage Development Co., Ltd. (WUDDC) by: (i) enhancing WWTPs’ operational efficiency; (ii) improved process performance to give greater assurance over the quality of residuals (i.e. wastewater effluent and sludge); (iii) identifying opportunities for upgrading technology and equipment to achieve better performance; (iv) promoting cost-effective energy and residual recovery; and (v) reducing the carbon footprint of the WWTP and sludge treatment/disposal operations.

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26. To help ensure the sustainability of the improved infrastructure and lake and channel rehabilitation and maximize the long term social benefits, the Project will implement an environmental and health awareness program. The focus of this project subcomponent is to help bridge the gap between knowledge and behavior with the aim of contributing to the sustainability of infrastructure improvements. The program will focus on three stakeholders who generate and are affected by point and non-point source pollution: (i) small businesses operating adjacent to the lake system, (ii) communities living in the project area, and (iii) school children in the project area. This program will help ensure that the regulatory practices are well understood and that necessary behaviour changes regarding non-point source pollution are addressed. The program intends to coordinate existing environmental awareness programs in the EPB, local NGOs, and community-based associations and schools.

27. In an effort to attain cost-recovery for sludge treatment investments, it is anticipated that the tariff will be restructured and increased. PRC has an established process of public consultation on tariff setting and the purpose of this initiative is to support access to information for the public and the consultation process, promote public participation, and provide training on the willingness to pay survey methodology. It is anticipated that this activity will provide a good practice example in the PRC for public consultation on tariff setting.

28. This component also covers the capacity building and training in environmental management regarding the EA, the IA, contractors, construction supervision companies, and other stockholders, so that they are able to implement the EMP and environmental monitoring program properly.

 Policy Dialogue

29. The Project builds on and advances ADB policy dialogue and initiatives with the WMG in several key areas, including: (i) sustainable sludge treatment and disposal; (ii) various aspect of sustainable wastewater management; (iii) reestablishing urban water patterns and ensuring adequate water quality of surface water bodies; (iv) climate change mitigation and adaptation; (v) community environmental and health awareness; and (vi) cost recovery and tariff reform.

30. The current sludge treatment and disposal arrangements are not yet sustainable in PRC. The Government is actively researching solutions to deal with the country’s rapidly increasing volume of WWTP sludge in a sustainable and economic manner. The Project is the first ADB assistance to pursue comprehensive sludge management while fully attending to environmental concerns such as climate change mitigation. Policy discussion with WMG at the inception stage of the PPTA led to a re-design of the sludge component in order to fully address concerns over secondary pollution and climate change impacts. The Project offers the environmental solution to maximize the sustainable land application of sludge. The Project will contribute as a pilot to the development of a nation-wide framework for sludge management by the Ministry of Housing, 5

Rural and Urban Development (MOHURD), supported by ADB within the ongoing advisory technical assistance study.3

31. The Project will also pioneer the optimization of WWTPs' performance. This task will be carried out for the whole of Wuhan. It will improve the performance of the infrastructure financed by the previous two ADB projects in Wuhan. Optimized WWTPs will respond to a number of energy, environmental and climate change concerns. One of the core tasks will be the improvement of the sand removal process. Inefficient sand removal causes the abrasion of equipment, including pumps and dewatering machines, it also negatively affects the quality and quantity of the wastewater sludge.

32. Policy dialogue on developing integrated surface water management has been initiated during project preparation, based on the recent ADB TA4 and related ADB publication.5 Pollution source control is critical to the quality of water in Wuhan's surface water bodies. Actions by WMG to invest in wastewater interception and treatment and to strengthen industrial pollution control have already had a major impact on pollution levels attributed to point sources. The project public awareness component will address the issue of non-point source pollution control. The Project will also promote the use of the water quality model (WQM), developed through the assistance of ADB financed WWMP and WWSMP. The model will help addressing long term water quality forecast and assist in emergency events.

33. Wuhan City is significantly vulnerable to climate change. Project initiatives in both climate mitigation and adaptation will introduce approaches and activities for developing climate resilience and low carbon economy. Adapting water management to greater risk of floods and droughts are key aspects of climate adaptation. The Project advocates the adaptable nature of decentralized infrastructure as an important element in building resilience to natural hazards. It will also support the Government-WWF initiative to regain the natural water retention ability in the project area by re-establishing the water flow between the lakes and channels. This is an essential action to mitigate the climate change impacts and increase water system resilience. The Project will also contribute to the development of ongoing ADB knowledge product for the development of Wuhan's water infrastructure climate change resilience.6

3 TA 7083-PRC, Urban Wastewater Reuse and Sludge Utilization Policy Study, which commenced in April 2009 and is due to be completed in October 2010. 4 Asian Development Bank (ADB). 2004. Technical Assistance to People’s Republic of China (PRC) for Evaluation of Environmental Policy and Investment for the Water Pollution Control in the Huai River and Tai Lake Basins. Manila. 5 Reviving lakes … 6 TA-4971, Guide to increasing the climate change resilience of urban water infrastructure – case study of Wuhan City, Hubei Province, PRC.

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34. The environmental public awareness is to help bridge the gap between public knowledge and behavior with the aim of contributing to the sustainability of the infrastructure improvements. The program will focus on three types of stakeholders who generate point and non-point source pollution and are affected by it: (i) small businesses operating adjacent to the project lake, (ii) local communities, and (iii) school children in the project area. This program will help to ensure that the regulatory practices are well understood and that the necessary behaviour changes regarding non-point source pollution are addressed. The program will coordinate with the existing environmental awareness programs in the EPB, local NGOs and community based associations and schools.

35. ADB previously undertook extensive dialogues with WMG and the IA on tariff reforms and cost recovery. The current wastewater tariff is well established and provides a strong foundation for project sustainability, but the large investments recently made in wastewater collection and treatment translate in full cost recovery only possible in the medium term. In the short to medium term WMG will have to continue to provide subsidies to the wastewater sector. To achieve full cost recovery in the medium term (by 2018) WMG has agreed to strengthen tariff reforms as well as to fully integrate the financing of wastewater and sludge management.

III.DESCRIPTION OF THE ENVIRONMENT

 Topography and Geology

36. The project area is located in Wuhan City, which is in the eastern part of Hubei Province. It lies in the middle and downstream section of the Yangtze River, east of the Jianghan Plain. The topography of Wuhan is characterized by a plain in the central area, hilly terrain in the northern and southern parts, and low mountains in the north. The project area owns abundant fresh water resource with many lakes, rivers, channels, and ponds. The land elevation varies from 21 m to 30 m above sea level, with a natural gradient of about 0.1%. The underlying geology is characterized by a new Cathaysian system structure, and the soil is mostly clay and sandy clay. Over the last 100 years, there was no major earthquake recorded, and the area is classified as 5-6 on the PRC’s earthquake intensity scale.

 Climate and Rainfall

37. The project area is a subtropical monsoon climate with distinct seasonal changes and abundant rainfall. The average annual temperature is approximately 18.6℃, ranging from 37.2℃ (in August) to -1.5℃ (in January). The average relative humidity is around 70%, with the annual average precipitation of 1,267 millimeter (mm). The average annual non-frozen period is about 205-240 days. The prevailing wind directions are north and northeast in winter and southeast and south in summer, with an annual wind speed of 1.5 m/s.

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38. In the past two decades, temperatures in the in the Yangtze River basin area have risen by an average of 1.8 degrees Fahrenheit (1 degree Celsius), causing a spike in flooding, heat waves and drought. The region is home to nearly a third of the country's population, with some 400 million people living there.

39. Data collected by the Government from 147 monitoring stations along the 700,000-square-mile (1.8 million-square-kilometer) area showed temperatures rose by 0.33 degrees Celsius during the 1990s. Additional findings show that between 2001 and 2005, the basin's temperature rose on average another 0.71 degrees Celsius.

40. Over the past 50 years, temperature has continued to climb by an average of 1.5 degrees to 2 degrees Celsius. The frequency of storm, floods and drought events has also increased. Natural habitat such as grasslands and wetlands have receded steadily in recent years. Early warning systems and emergency preparedness planning are one of the key areas to accommodate the climate change7

 Hydrology

41. The project area is located in the Yangtze Basin and crisscrossed by rivers, lakes, channels and drainage ditches. There are 160 rivers (>5 km), 166 lakes (40 within the urban area), 116 channels, and 273 reservoirs in Wuhan. The total annual water resources are up to 681.2 billion m3. The Han River, with six other major tributaries, flows into the Yangtze River which is the third longest river in the world. The Yangtze River and Han River, characterized as high flow throughout the year, are the main surface water resources for most domestic, commercial, industrial, agricultural, and fishery use.

42. The Project covers four lakes in total, including three lakes in the Hanyang Area8 (i.e. Longyang Lake, Moshui Lake and Nantaizi Lake) and one lake in the Wuchang Area (i.e. Yangchun Lake). Table 3 shows the basic information of these lakes.

Table 3. Basic Information of Four Lakes Related to the Project Water Surface Drainage Area Lake-bottom Normal Water Lake Area (km2) (km2) Elevation(m) Level (m) Longyang Lake 1.53 10.9 16.7~19.0 19.5 Moshui Lake 3.16 18.0 16.6~18.0 19.5 Nantaizi Lake 5.09 20.0 16.0~18.0 - Yangchun Lake 57.6 400 - 19.65

7 The report by WWF-International, formerly known as World Wildlife Fund issued on 10 November 2009. The report was prepared with the participation of the China Academy of Sciences, the China Meteorological Administration and other academic institutions. 8 The City is divided into 3 areas by the Yangtze River and Han River, i.e. Hankou, Hanyang, and Wuchang.

8

km2 = square kilometer, m = meter. Source: FSRs, 2009.

 Ecological Resources

43. Biological resources are relatively abundant and diverse in Wuhan, due to the fact that it is located in the transitional zone between the middle and north subtropical zones, with Yangtze River traversing the city. Table 4 describes the primary flora and fauna in the project area.

Table 4. Flora and Fauna in the Project Area Category Type Major Species Camphor tree, bambusa sinospinosa, Flora (more than 1,000 Trees metasequoia, Chinese parasol tree, fir species) Aquatic plants Lotus, reed, wormwood, fern Fish Wuchang fish, grass carp, silver carp White crane, wild goose Birds

Fauna(more than 130 Aquatic life species) White-flag dolphin, Chinese paddlefish, turtle

Pig, cow, chicken Livestock and poultry

Major corps Rice, corn Agricultural resources Cash corps Tea, rapeseed, vegetables, herb medicines

Fruits Orange, grape, peach

44. The Yangtze River has a rich ecological system. It has such species as white-flag dolphin9 and Chinese paddlefish, which are class I protected species in the PRC. However, there is no record of national threatened or endangered species within the project area, since the project lakes/channels are either blocked or too polluted to support white flag dolphins and paddlefish. Other national protected species include the white stork, classified as a rare water fowl with national class I protection, and cowfish with class II protection. The Project will have no negative impact on the aquatic life and ecological system of the Yangtze River. The Project is expected to have positive impact to the aquatic system as the water circulation among the Yangtze River and the project lakes and channels will be improved, which is in line with PRC’s policy supported by World Wildlife Fund (WWF) to restore the lake network along the Yangtze River10. With respect to the Han River, there is no national protected species. In addition, the mesh for protecting the fish will be set up where water flows into / out the project lakes and channels.

9 The white-flag dolphin is believed to be functionally extinct. 10 As the core of 'restoring of the web of wild life and saving the endangered animals ', WWF seeks to engage local organizations to explore an effective way of re-establishing river-lake linkages. 9

 Water Quality and Pollution

45. The project area is now heavily urbanized with the water quality of many water bodies within the city deteriorating due to the ongoing discharge of untreated domestic and industrial wastewater. A large amount of domestic rubbish and industrial solid waste is dumped at random around the proposed lakes and channels. The Yangtze River and Han River have strong self-purification capacity owing to their large flows, which meets water quality requirements of Class III. However, all of the lakes and channels involved in the two lake/channel rehabilitation components have been polluted seriously except for the Zong Channel. Tables 5 and 6 shows the current water quality conditions of these lakes and channels.

Table 5. Water Quality of Relevant Lakes Involved in the Project TSI (∑) - Target Water Existing Water Lake Major Pollutants Eutrophication Quality Quality Level

CODMn, BOD5, NH3-N, TP, 76.12 – high level of Longyang Lake Class >Class TN, Oil, Fecal E. Coli, COD eutrophication 69.51 – mid to high Moshui Lake Class >Class TP, TN, Oil, COD level of eutrophication

CODMn, NH3-N, TP, TN, 69.89 - mid to high Nantaizi Lake Class >Class Oil, COD level of eutrophication Yangchun Lake Class Class COD , TP, TN -

CODMn = permanganate index, BOD5 = 5-day biochemical oxygen demand, NH3-N = ammonia nitrogen, TP = total phosphorus, TN = total nitrogen, COD = chemical oxygen demand. Source: EIA reports, 2009. Note: (i) Monitoring year is 2008; (ii) TSI (∑) means trophic state index, consisting of various physical, chemical and biological indicators; TSI (∑)>70 indicating a high level of eutrophication; 60<TSI (∑)≤70 indicating a middle level of eutrophication.

Table 6. Water Quality of Relevant Channels Involved in the Project Major Pollutants Exceeding Nemerow Index Channel Water Quality Class (PN)

Liantong Channel >Class Ϭ NH3-N, TP, TN 1.42 Zong Channel Class ϫ N/A 0.66

DO = dissolved oxygen, BOD5 = 5-day biochemical oxygen demand, NH3-N = ammonia nitrogen, TP = total phosphorus, TN = total nitrogen, COD = chemical oxygen demand. Source: EIA reports for Subcomponent of Wuhan New Zone Lakes/ Channels Rehabilitation and Component of Yangchun Lake Secondary Urban Centre Lake / Channel Rehabilitation, 2009. Note: (i) Monitoring time is June, 2009; (ii) Nemerow Index (PN) is adopted to evaluate the overall pollution level; PN <1 indicating a clean status; 1<PN≤2 indicating a lightly polluted status; 2<PN≤3 indicating a polluted status; 3<PN≤5 indication a heavily polluted status; PN>5 indicating a very heavily polluted status.

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46. Owing to the specific concern on the persistent organic pollutants (POPs), monitoring of organic pollutants was undertaken for the sludge from three WWTPs (i.e. Shahu WWTP, Erlangmiao WWTP and Luobuzui WWTP) and sediment from four lakes (i.e. Longyang Lake, Moshui Lake, Nantaizi Lake, and Yangchun Lake). The monitoring parameters included benzo[a]pyrene, polychlorinated dibenzo-p-dioxins (PCDDs) and polychlorinated dibenzofurans (PCDFs), absorbable organic halogens, (AOX) and polychlorinated biphenyls (PCBs). Table 7 shows the monitored data of the sludge and sediment, provided by a qualified independent laboratory.

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Table 7. Monitoring Data of the Sludge and Sediment AOX PCBs PCDDs & PCDFs benzo[a]pyrene WWTP/Lake (mg/kg ds) (mg/kg ds) (ng -TEQ/kg ds) (mg/kg ds) Sanjintan WWTP 20 <0.1 2.4~6.0 <0.1 Longwangzui WWTP <10 <0.1 28~32 0.44 Tangxunhu WWTP <10 <0.1 7.6~11 <0.01 Longyang Lake <10 <0.1 0.78~4.6 0.19 Moshui Lake <10 <0.1 3.5~6.4 0.19 Nantaizi Lake <10 <0.1 0.20~4.5 0.03 Yangchun Lake <10 <0.1 0.05~1.8 0.07 Standards CJ/248-2007& 500 0.2 100 3 CJ291-2008 mg/kg ds = milligram per kilogram dry solid; ng-TEQ/kg ds = nanogram TEQ per kilogram dry solid, TEQ = toxic equivalency factor. Source: Test Report Provided by SGS, September 2009. Note: The concentrations of PCDDs & PCDFs have been converted into TEQ values. Meanwhile, TEQ adopts the standard of International Union of Pure and Applied Chemistry (IUPAC).

47. Based on the above data, the concentrations of four monitoring parameters for all sludge samples meet the relevant criteria of the Quality Standard of Urban Wastewater Treatment Plant Sludge for its Disposal as Afforestation Application (CJ/T248-2007) and Quality Standard of Urban Wastewater Treatment Plant Sludge for its Disposal as Soil Conditioner (CJ/T291-2008), which means that the land use of the sludge will not be constrained due to these organic pollution parameters. Moreover, the sludge quality will continue to be monitored regularly during project implementation, which has been specified in the EMP. In case that the sludge does not meet the standards mentioned above, it will be disposed of in the landfill site.

48. For the sediment of the four lakes, there is no ongoing applicable national standard. The above two standards for the sludge from WWTPs are adopted for evaluating the lake sediments. The levels of POPs in the lake sediments are acceptable, and their potential impact on the surrounding environment is limited during dredging.

 Social and Economic Conditions

49. Wuhan City is the capital of Hubei Province, which is the political, economic, trading, information, and cultural centre of the province. Meanwhile, it is the industrial, trading, transportation, scientific research, and education centre of Central PRC.

50. Wuhan has a long history of more than 3,500 years with abundant historical and cultural resources. Due to its superior geographical position, the city is the trading centre and a strategic military location historically. It is one of the most famous towns in the Ming and Qing Dynasties.

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51. The city is experiencing a period of rapid economic growth in recent years, with an average gross domestic product (GDP) growth of more than 13%. The social and economic conditions of the city are summarized in Table 8. In addition, Table 9 shows the comparison of key data with the national average.

Table 8. Key Social and Economic Conditions in Wuhan Item Statistics Population Total population: 8.28 million Male vs female ratio: 51.6 : 48.4 Land Total Area: 8,494 km2 Farmland: 2,104 km2 (paddy land-1,259 km2; dry land-802 km2) Administrative Seven urban districts: Hanyang, Hongshan, Jian’an, Jianghan, Qiaokou, Qingshan Area and Wuchang Six suburban districts: Caidian, Dongxihu, Hannan, Huangpi, Jiangxia and Xinzhou Economics GDP (2008): CNY396 billion Disposable income per urban resident (2008): CNY16,712 per year Income per rural resident (2008): CNY6349 per year Transportation 8,842 km highways, 1 international airport Education 52 universities/colleges (1 million students) Health Care 227 hospitals (40,700 beds) Ecology Greenbelt coverage in built urban area:37.4%; six wetland reserves with total area of 3370km2 Historical and 17 public libraries, 17 museums, 31 scenic spots, 35 parks and 339 cultural sites Tourism (e.g. , Qingchuan Pavilion) CNY = Chinese Yuan, km = kilometer, km2 = square kilometer. Sources: 2008 Wuhan Statistic Yearbook, 2007 Annual Report of Wuhan Transportation, http://www.chinalakes.org/html/Cn/NewsCenter/094210523K0.html.

Table 9. Socioeconomic Data of Wuhan Compared with the National Average Item Wuhan China Average Remarks Population 8.28 million 1,321.29 million 0.63% Male vs Female Ratio 51.6:48.4 51.5:48.5 Similar Ethnic Minorities 0.64% 9% Much lower GDP per capita CNY47,826 18,885 Much higher Source: 2008 Wuhan Statistic Yearbook, 2008 China Yearbook.

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IV.ALTERNATIVES

 With and Without Project Alternatives

52. Together with ADB investments since the mid-1990s, the wastewater treatment rate in Wuhan has been achieved at 80%. Currently, there are 13 WWTPs in the city, which have been or will be operated. Three of these WWTPs were built under the earlier ADB-funded WWMP and WWSMP. The plants in operation have a total treatment capacity of 1.5 million m3/d. Although the rapid increase in wastewater treatment capacity improves the water quality of receiving water bodies, it produces a large amount of sewage sludge that needs proper treatment and disposal. Based on the statistics in 2008, a total of 657t of sewage sludge with dry solids content of 20% are generated each day.

53. At present, such sludge is disposed to the landfill sites. Due to its high water content and large quantity, the current practice will reduce the capacity and service life of landfill sites. The fine solid of the sludge may clog the leachate collection system. In addition, if the sludge is not filled properly in the landfill site, various pollutants within the sludge may follow the leachate to enter underground and pollute the groundwater, rivers, and lakes. The Project has conducted extensive policy dialogue and as a result will provide an opportunity to achieve the reduction, stabilization, innoxiousness, and recovery of the sludge (i.e. four tiers of sludge treatment and disposal), which reflects the practice of recycling economy and is in line with the relevant national policy11 and the three R principal.12 Without the Project, the secondary pollution will continue, and the pathogens within the sludge may enter the food chain, which threaten public health.

54. The Project will intake the water from the Han River, make the water circulate among six lakes and associated channels, and discharge the water into the Yangtze River. The three lakes involved in the Project were connected with the rivers or may have even developed from the rivers historically, which can date back to Three Kingdoms Period (about 1,800 years ago). This vast area that once acted as a natural sponge to soak up floodwaters during the rainy season has been greatly disturbed by unsustainable practices such as land reclamation, dyke building, and overpopulated urban settlements.

55. It is of great importance to restore the original shape and retention capacity of this system to mitigate the increasing risk of flood and drought associated with climate change. Without this project, the water quality would deteriorate gradually, the high risk for flooding would continue, the healthy aquatic ecosystem of six lakes would not be rehabilitated, and the living environments of local people would not be improved.

11 Recycling Economy Promotion Law was implemented on January 1, 2009. The law has established the basic system and policy framework for developing a recycling economy in PRC. 12 Reduce, reuse, and recycle.

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56. The connection among lakes and river provides improved natural habitats for the white stork, cowfish and other aquatic species, and serves as the migration channel for Chinese paddlefish. The Project offers a means to restore water circulation and the dynamic connection among lakes and rivers, and improve the flood storage capacity of the whole water system, water flow and self-purification of the lakes/ channels, and stability of lake ecosystem and fish stocks.

57. Moreover, by re-establishing the connection between the city lakes and the Yangtze River, the Project also contributes to a national policy, supported by World Wildlife Fund (WWF), on restoring the complex network of lakes along the Yangtze flood plain. Due to natural changes in the rivers (e.g. silting) and human activities such as construction of water gates for flood control and prevention, the connection among lakes and river was obstructed, leading to the deterioration of biological diversity and other associated negative impacts.

58. The scope of two lakes/channels rehabilitation components includes dredging, embankment works, and landscaping. The works will (i) improve the water quality and hydraulic condition of water bodies; (ii) restore the natural ecosystem of lakes/channels; (iii) provide the scientific research base and the public environmental education center; and (iv) beautify lakes/channels. Without the Project, the water quality and biological diversity of the lakes/channels would deteriorate continuously, and the urban environment and socioeconomic development would not be enhanced.

59. Compared with the multi-year mean flood level of 26.03m, the Sixin Area is low-lying with a maximum low elevation of 17 m. The subcomponent of Sixin PS will be built to help avoid the serious urban flooding recurring every year and the consequent economic loss, and to enhance the land value. Moreover, the subcomponent develops climate adaptation response. Without the Project, the living environment of local residents and the investment climate in the area would not be improved, and the local economic development would be hindered.

 Alternatives in Sludge Treatment and Disposal

60. Typical sludge disposal practices include land application for afforestation and gardening use and soil amendment, utilization as construction material, landfill, incineration, etc. Since the incineration has a high potential risk of producing (i) dusts with heavy metals; (ii) acidic gas, such as hydrogen chloride (HCl), nitrogen oxides (NOx) and sulphur oxides (SOx); (iii) products of incomplete combustion, such as toxic carbon monoxide (CO) and polycyclic aromatic hydrocarbon (PAH); (iv) carcinogenic dioxins; and (v) a large amount of carbon dioxide (CO2), the incineration practice will not be adopted in this project.

61. As a result of intense project preparatory dialogue, the sludge is to be properly treated before its disposal. Various sludge treatment technologies were reviewed and analyzed, including heat drying, digestion, lime stabilization, composting, as well as other options (such as 15 carbonization).

62. The main beneficial use of the treated sludge from the Wuchangbei STP is soil amendment. For the extra amount of sludge that cannot be consumed as soil conditioner, the Chenjiachong Landfill will be used as back-up disposal site. To meet such disposal requirements, the dry solid content of treated sludge should be in the range of 60 % or lower. Considering the cost, local condition, flexibility and adaptability to sludge disposal practices, the heat drying process was selected for Wuchangbei STP.

63. The current sludge disposal practices mainly include land application for soil amendment, incineration, and land filling. The overall trend is increased application of the soil conditioning and incineration methods with gradual decrease in disposal at landfills. There are pros and cons associated with each of the sludge disposal methods. For Wuhan, sludge disposal should not be constrained to a single method. Rather, all the disposal methods should be open for discussion and consideration for adoption in line with the overall development of the Wuhan City.

64. The equipment for heat drying include fluidized bed dryer, belt dryer, multi-tray grain dryer, turbo thin film dryer, rotary dryer, multi-stage vacuum distillation process, blade dryer, and cylindrical dryer. The belt dryer is a preferred option for the Wuchangbei STP for its simple O&M and flexibility on the water content control.

 Alternatives in Water Circulation among Lakes/Channels

65. Different options for enhancing flow lake circulation were considered and evaluated in restoring water circulation among lakes/channels. The evaluation included the comparison of water resource availability, flow route, flow rate, and flow circulation pattern.

66. Both the Yangtze River and the Han River were evaluated as the water source. The Han River was selected in consideration of the fact that it used to be feeding into to the project's lakes and channels. The technical and economic aspects were also taken into account in selecting the Han River as the water source for lake circulation enhancement. Table 10 shows the comparison of water source characteristics between the Yangtze River and Han River.

Table 10. Comparison of Alternative Water Sources Item Yangtze River Han River Water Volume Very abundant Abundant enough for water intake Water Quality Fair with high sand content Fair Condition of Gravity Flow Poor, not in line with topography Fair, in line with topography Downstream Water No negative impact No negative impact Impact Possibility of Relatively high risk Low risk

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Item Yangtze River Han River Oncomelania Other Constraints Nantaizi Lake is heavily polluted N/A Source: FSR for Wuhan New Zone Lakes/ Channels Rehabilitation and Pumping Station, 2009.

67. Four water circulation routes were considered, i.e. Route 1: Han River-Qinduankou Channel-Longkou Channel-Longyang Lake-Mingzhu River-Moshui River-Liantong Channel-Nantaizi Lake-Yangtze River; Route 2: Han River-Qinduankou Channel-Longkou Channel-Longyang Lake-Tangshan Channel-Sanjiao Lake-Xinmin River-Nantaizi Lake-Yangtze River; Route 3: Han River-Qinduankou Channel-Zhujialaogang Channel-Zhujiaxin Channel-Longxin Channel-Longyang Lake-Mingzhu River-Moshui Lake-Liantong Channel-Nantaizi Lake-Yangtze River; and Route 4: Han River-Qinduankou Channel-Zhujialaogang Channel-Zhujiaxin Channel-Longxin Channel-Longyang Lake-Tangshan Channel-Sanjiao Lake-Xinmin River-Nantaizi Lake-Yangtze River.

68. All the four routes share the same entrance into Longyang Lake. Routes 1 and 2 are relatively short compared with the other two. The main purpose of Routes 1 and 3 is to improve the water quality of Longyang Lake, Moshui Lake and part of Nantaizi Lake. Routes 2 and 4 aim to improve the water quality of Sanjiao Lake, part of Nantaizi Lake, and Longyang Lake (with a lower priority). All the four routes were jointly selected. The water will be circulated by dual line, i.e. when the water flows into Longyang Lake, it also flows to Moshui Land and Sanjiao Lake with a ratio of 2:1, in line with the area and volume of these two lakes.

69. Regarding the flow rate of water circulation, mathematical modeling was developed to analyze and forecast the efficiency of water quality improvement with a circulation period of 30 days. Five different flow rates, including 5 cubic meter per second (m3/s), 8 m3/s, 10 m3/s, 20 m3/s and 30 m3/s, were evaluated. The flow rate of 20 m3/s was adopted because (i) the water quality of six lakes can be significantly improved; (ii) the DO level will be improved and the algae will be controlled efficiently; (iii) the existing hydraulic facilities/works meet the requirement of water circulation with 20 m3/s; (iv) it is in line with the urban drainage plan; and (v) the fish stocks will be greatly restored.

70. Water can be circulated by either pumping or gravity flow (using water gate). Four different water circulation scenarios were analyzed which is shown below in Table 11. The water comes from Han River when the water level of Han River is no higher than 25.21 m (in case of floods, when the Han River [Qinduankou] water gate will be closed), which aims to avoid the urban flooding.Prior to construction of operation of South-North water diversion project, there will be no water from from Han river during its low water period (December-March).

71. During the low water period in Han River, there will be adequate natural water circulation provided by interconnected channels, which is adequate to sustain the water quality 17 improvement that was achieved during the high water level in Han River. The amount of water used by the Project is only about 0.43% of average flow rate of Han River.

Table 11. Comparison of Different Water Intake Scenarios O&M Recommend or Alternative Investment Applicable Period Requirements not Intake and discharge by May~July or Recommend Light N/A gravity flow Sept.~Nov. with priority Intake by gravity flow and Light N/A June~August recommend discharge by pumping Intake by pumping and To build PS at Light Very short Not recommend discharge by gravity flow Qinduankou Intake and discharge by To build PS at Heavy No time limit Not recommend pumping Qinduankou Source: FSR for Wuhan New Zone Lakes/ Channels Rehabilitation and Pumping Station, 2009.

 Alternatives in Lakes/Rivers Rehabilitation

72. Dredging will be undertaken in lakes to reduce the internal pollution load of water bodies. Four types of dredging equipment were considered, including cutter-suction dredger, trailing suction hopper dredger, bucket dredger and suction and dredger. The cutter-suction dredger was selected due to (i) good soil adaptability, (ii) long discharge distance using pumps in series, (iii) high efficiency with relatively low energy consumption and cost, and (iv) no dredged sediment scattered to cause the secondary pollution by using pipeline transportation.

73. The dredged sediment from the lakes contains nutrients and heavy metals, which will be disposed properly to avoid the secondary pollution. Two options were evaluated for sediment from lakes. Before it is treated and disposed, the sediment could be stored at a confined area within the lake, and separated from the lake water by engineering barriers. Another option is to store and dewater sediment near the lakeshore. Due to the complexity of sediment constituents and risk of lasting secondary pollution, the second option was selected.

74. The proposed revetment restoration will improve the channels with two options, i.e. concrete and ecological revetment. The ecological revetment was adopted because (i) it meets the public requests; (ii) the ecological revetment will improve the exchange among the soil, water and creature with the biological purification capacity; and (iii) the option will produce better landscaping to blend into the surrounding environment and provide the recreation of public space.

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 Alternatives in Pumping Station

75. Based on the relevant master plans and existing topography of the Sixin Area, the new PS will be located at Goubei Village, Hanyang Area.

76. The process flow of PS is shown in Figure 1.

Storm Regulation Bar Distribution Pumping Pressure Water Chamber Screen Channel House Pipeline

During the Low Water Level in Yangtze Buffer Tank Existing Dongfeng Water Gate

Yangtze River Yangtze River

Figure 1. Flow Sheet of Sixin Pumping Station

77. Based on calculation, the capacity of Sixin PS is determined to be 105 m3/s for long-term planning, with a return period of one year. In consideration of the plan and the development sequence of the area, the equipment installation will be implemented in three phases and each phase will increase the capacity by 35 m3/s. Regarding the arrangement of equipment installation, there are two options for land use and civil works. Option 1 is to conduct the civil works as the capacity of Phase 3 (i.e. 105 m3/s), and undertake the equipment installation as Phase 1. Option 2 is to reserve the land as Phase 3, construct the civil works as Phase 2, and carry out the equipment installation as Phase 1. Option 1 was selected due to the relative lower cost and simpler O&M process. 19

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

 Positive Impacts and Environmental Benefits

78. The Project will bring significant benefits to more than three million residents by improving living conditions, urban environment, sanitation and public health, as well as employment and residents’ income in the municipality.

79. The Project has a good demonstration potential for other PRC cities on sustainable treatment and disposal of WWTPs’ sludge and ecological rehabilitation of polluted/blocked urban lakes and rivers.

80. The Sludge Treatment and Disposal Component addresses the severe challenges of rapidly increasing amount of sludge from existing WWTPs. The Project will sustainably treat and dispose of the WWTP sludge with application of the 3R approach (Reduce, Reuse and Recycle). The Component will contribute to the city’s sludge treatment and disposal master plan from centralizing to decentralizing and from adopting the incinerating method to using the environmental friendly technology by applying pragmatic, efficient, sustainable and integrated approaches. The sludge project solution has been accordingly adjusted in line with the PPTA recommendations. The Project PPTA supported the development of a national development policy dialogue on sludge treatment and disposal under ADB TA 7083 "Urban Wastewater Reuse and Sludge Utilization Policy Study."

81. The sludge treatment and disposal component of the Project will help enhance the sludge treatment facilities in Wuhan, facilitate city’s sustainable development, and improve the living environment for the city residents. Though additional costs are expected to incur for sludge treatment, which thereby may result in a tariff increase for wastewater treatment, awareness of the general public on environmental protection may be enhanced as a result of the increased cost for wastewater treatment and environmental protection.

82. Although sludge treatment may not result in a direct financial benefit, the Project will have a profound impact on Wuhan’s municipal development. The Project will help alleviate the environmental constraints on development of other industries such as manufacturing, tourism, real estate, etc. With a harmonization of economic development, social development and environmental protection, the Project is expected to bring a significant long term economic benefit to Wuhan.

83. The Project will provide sludge and wastewater monitoring equipments to WUDDC, which will significantly strengthen the City’s environmental monitoring capacity, especially for sludge monitoring.

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84. The Project will utilize the WQM to contribute to the future long-term master planning and achieve emergency response to pollution incidents and forecast blue-green algae outbreak.

85. The Lakes/Channels Rehabilitation Components will restore the natural water circulation of lakes and channels, and enhance the biological diversity of the ecosystem in the lakes and channels damaged by rapid urbanization.

86. Water replenishment from the Han River, by improving the flushing capacity of the watercourses, will improve the water quality and flood storage capacities for water bodies involved in the project.

87. The artificial wetland will serve the function of water quality polishing, flood storage, wildlife habitat, outdoor recreation and water conservation education, which, together with landscaping and reforestation along the lakes and channels will also contribute to the project’s climate change responsiveness.

88. After sludge drying, digestion and stabilization, its volume will be reduced significantly. The vehicle trips for transporting sludge will be therefore reduced, cutting the GHG vehicle emissions.

89. The Project will increase the real estate values alongside lakes and channels, and will promote tourism.

90. The Sixin PS subcomponent will improve the sewer and stormwater networks in the Sixin Area and provide adequate flood control safety.

 Mitigation Measures during the Design Phase

91. The following mitigation measures will be undertaken during the design phase:

(i) All project sites will be carefully selected to avoid or minimize the potential negative impacts on environmental and surrounding communities; (ii) The facilities/works will be located and designed to minimize the resettlement impact; (iii) Adequate technical design and scheduling of construction activities for each component will be arranged to meet the relevant standards and regulations on the safety, sanitation, and environmental protection. For instance, the proper equipment for sludge heat drying will be selected to avoid the high risk on fire and explosion during the operation phase of the sludge component; (iv) The environmental mitigation measures included in the EMP will be part of the design document for each component and will be included in the bidding documents and contracts for the procurement of goods and civil constructions; 21

and (v) The environmental monitoring program is incorporated into the overall project design to ensure that the environmental impacts are closely monitored, and project construction and operation activities are strictly supervised based on the EMP.

 Environmental Impacts and Mitigation Measures during Construction

 Land and Habitat Loss

92. The Project will result in the permanent land loss of approximately 1795.37 mu and associated habitats. There is no land loss for the sludge component, and around 33% of land loss is contributed to the component of the Wuhan New Zone lakes/channels rehabilitation and pumping station. The land is of mixed uses, including agricultural, fishery and housing, and a large amount of mudflat and moorland.

93. In addition, the Project will lead to temporary land use of approximately 42 mu and associated habitats for dredged sediment treatment sites, temporary roadways, and construction sites and camps. After the project construction is completed, the land will be restored to previous condition.

94. Wuhan is a historical city with a rich cultural heritage. There is no record of important heritage and archaeological sites on the land that will be temporarily or permanently used. In case the archaeological artifacts are discovered during project construction, the relevant cultural authority and the project management office (PMO) will be notified promptly, and the relevant government regulations will be followed to preserve these artifacts. In addition, there is no record of national threatened or endangered species within the project area.

95. The domestic EIA for the new STP in Luobuzui WWTP confirms that the relocation of the Wuchangbei STP from Tangzhunhu WWTP to the Luobuzui WWTP will have no impact on protected sites, critical habitats, land acquisition and resettlement. There is no land loss for the new sludge component. The site was carefully selected to avoid any negative impact on environmental and surrounding communities.

 Water Quality

96. The muddy runoff and wastewater will be discharged from the construction site/camp to pollute the nearby surface water, which includes the domestic wastewater generated by the workers and the wastewater / waste oil produced by construction activities, such as handling and application of construction materials and vehicle/machinery maintenance.

97. The domestic wastewater will be collected and pre-treated in septic tanks, and discharged to

22 public sewers nearby whenever possible. The settling ponds and oil-water separators will be set to treat the muddy runoff and construction wastewater.

 Air Quality

98. The construction activities, such as excavation, demolition, construction running and material handling, will generate the airborne dust which will cause the total suspended particle (TSP) in the area. Furthermore, the construction will consume a large quantity of diesel and release the exhaust fume with the significant amount of gaseous CO, NOx, and SOx.

99. Dust mitigation measures include the paving of frequently used haul roads, hoarding with a height of no less than 2.5 m for house demolition, minimizing on-site storage time of construction and demolition wastes, covering stockpiles, using tarpaulins to cover the trucks carrying dusty materials, controlling the vehicle speed on construction sites, and timely restoration of disturbed land to minimize the adverse impacts on humans and crops. Moreover, the construction sites, transportation routes and materials-handling sites will be water-sprayed on dry and windy days up to three times a day, especially if these sites are near sensitive receivers, such as residential areas. 100. Exhaust fumes from vehicles will be minimized by using the tail gas purifier, and construction machine/dredging equipment will undertake proper maintenance and regular checks to ensure that exhaust gases comply with relevant emission standards.

 Solid Waste

101. Refuse generated by the workers, together with construction and demolition wastes, will have negative impacts on the surrounding environment. The refuse will be stored in closed containers and regularly transported off-site for disposal. The construction and demolition wastes will be removed from the site promptly. Burning of the construction waste will be prohibited.

 Noise

102. Noise mitigation measures include the use of quiet equipment, proper O&M of machinery and the use of temporary hoarding or noise barriers to shield noise sources. The use of certain noisy machines, such as pile drivers, and concrete mixers, will be prohibited at nighttime. In addition, construction activities will be scheduled to minimize the impact of noise from construction machinery.

 Construction Traffic

103. Construction traffic and activity would lead to traffic congestion and inconvenience to the public. In conjunction with the local traffic management authority, traffic flow regulation plans will be prepared before construction begins in the congested and built-up urban area. In addition, 23 proper transportation routes and time will be selected to avoid the rush hour and reduce the traffic congestion.

 Vegetation

104. Vegetation within the construction area will be cut and cleared during the revetment restoration works of lakes/channels rehabilitation components. There are no flora species in the area under protection. The mitigation measure is to plant trees and grasses after the construction work completion, which is also a regulatory requirement.

 Sanitation and Safety

105. Sanitation is a key public health issue during construction. Due to poor working and living conditions and high work load, the workers are subject to propagating infectious diseases. Sanitation services will be maintained and monitored, including food quality and water supply. Medical facilities and health services will also be provided.

106. Contractors will be required to take safety measures at the construction site to protect the workers and the public, including putting-up warning signs to alert the public of potential safety risks in and around the construction sites, and providing protective clothing and safety equipment for workers.

 Specific Issues Relevant to Dredging

107. Lake and channel dredging will generate odor and affect surrounding sensitive receivers. The lake/channel sediment contains some organic pollutants with an anoxic/anaerobic condition due to microorganism metabolism, which enhances the formation of hydrogen sulfide (H2S), ammonia (NH3), and other odorous gasses. When the bottom sediment is disturbed during the dredging, the odorous gasses will be released to the air, which will then affect sensitive receivers within 50 m of the dredging site.

108. Dredging is a linear activity and its potential odor impact on sensitive receivers is only short term and temporary. Dredging will be undertaken during the cold season when the odor is not subject to release and residents are not inclined to open windows. In addition, dredged sediment treatment sites will be located more than 100 m away from sensitive areas such as schools, hospitals, residential communities, etc.

109. Since the lakes and channels to be dredged are relatively shallow, dredging will increase the suspended solid (SS) level and releasing rate of nitrogen (N) and phosphorus (P) in the water by stirring up the bottom sediment. However, such negative impact will be localized and short term, and there is no drinking water intake point is located in the lakes.

24

110. The dredging areas, as well as the temporary dredged sediment treatment sites have been identified in the EIA reports. The treatment process and facilities for the dredged sediment have been identified in the EIA reports and will be implemented following detailed designs. The treatment process mainly involves temporary storage and treatment, including sediment dewatering and discharge of the dredged sediment effluent. Treatment facilities and equipment include impermeable storage sites and sedimentation tank. Before it is discharged back into the water bodies, the effluent will be settled no less than three days in the sedimentation tanks. In addition, seepage prevention measures, such as impermeable geomembrane, will be utilized on the temporary treatment sites to prevent soil contamination and groundwater pollution. The treatment site will be strictly cleaned up and restored to original conditions in a timely manner after the constructions are completed, and will be inspected and accepted by the local EPB.

111. The quality of dredged sediment will be monitored and assessed in accordance with relevant national standards. If the quality meets the criteria, treated sediment from lakes will be utilized for lake landscaping; and in case the quality exceeds the standard, the sediment will be transported in sealed containers to landfill sites. The capacity for the landfill sites is estimated to be sufficient to accommodate the lake sediment and WWTPs’ sludge in case that the sediment and sludge are found to be poor in quality and are not suitable for the beneficiary uses.

 Environmental Impacts and Mitigation Measures during Operation

 Sludge Treatment and Disposal

112. The odor control is an environmental issue during sludge treatment and transportation. When sludge is transported to the sludge treatment plant, it will be properly loaded on specific vehicles to prevent odor nuisance to other road users. In addition, the transportation route and timing will be carefully selected to avoid major commercial and residential areas and peak hours. In terms of the sludge drying process, a combined odor treatment process, i.e. acid + alkaline wash and bio-filter, will be adopted in Wuchangbei STP..

113. The potential soil contamination is a serious potential environmental issue for sludge disposal if not mitigated properly. Such potential risk will be mitigated by (i) adequate sludge quality monitoring; (ii) transporting sludge in sealed vehicles; and (iii) using landfills as a back-up sludge disposal option in case of low quality.

114. Due to the high pressure and temperature condition that may occur during the sludge heat drying process, equipment safety could be a concern during the operation of STPs. Owing to the fact that the belt dryer does not involve mechanical stirring and the dust production is low without high pressure and temperature, no anti-explosive equipment will be needed.

115. The sludge from the existing WWTPs contains a high proportion of sand and soil, 25 resulting in large amounts of sludge, which translates in poor efficiency of grit chambers and high amounts of sludge produced. The project will provide advice on improving operational efficiency and performance of the three project WWTPs’ facilities before the sludge treatment facilities are commissioned.

 Water Circulation among Lakes/Channels

116. The water intake from the Han River may cause sediment deposition. A grit chamber with a length of 400m will be built near Qinduankou Channel for sediment removal. The Qinduankou Channel itself will also be used to settle the sediment.

117. The water intake and discharge will not have adverse impacts on the water use or/and ecological environment downstream of the Han River and the Yangtze River. The intake of the Qinduankou Water Supply Plant (WSP) is located 1.5 km downstream of the Qinduankou Water Gate, where the Han water flows into the Project lakes and channels. Since the water intake volume only accounts for 0.43% of the average annual flow of Han River, the diversion of the Han River water into the Project lakes is not expected to impose significant impacts on water supply condition at the water intake of the WSP. Furthermore, no significant impact on the ecological environment downstream the water intake of the WSP is anticipated given the limited amount of water intake volume by the Project and WSP (i.e. 062% of the average annual flow of the Han River).

118. As for the Yangtze River, there are two drinking water intake points near the Dongfeng Water Gate and the Donghu PS, where the Project lakes and channels water will be discharged into the Yangtze River. Nonetheless, the EIA water modeling results indicate that the water discharge from the Project lakes and channels will not have an adverse impact on either of the two water intake points even in dry season. The water quality of the Han River, the Yangtze River, and the relevant lakes will be frequently monitored to ensure that any adverse impact will be avoided. By closely following the actions stipulated in the EMP, no water users are expected to be adversely affected by project water intake and discharge.

119. Due to the fact that the three lakes involved in the Project are shallow with thick sediment, and the water circulation may have potential to (i) disturb the bottom sediments, (ii) change the balance of N and P between the water and sediment, and (iii) enhance the eutrophicaton level of the lakes. Under such circumstances, appropriate mitigation measures will be undertaken to reduce/eliminate such potential adverse effects. For example, the water circulation rate may be reduced to an appropriate level as a mitigation measure.

120. The water intake and circulation works have also been studied for potential risk of oncomelania and schistosomiasis spread due to the enabling environment in lakes for oncomelania during water circulation. Nonetheless, studies carried out by the Hubei provincial

26 institutions show that there is no oncomelania presence in the Wuhan section of the Han River for more than 30 years. In addition, the sedimentation process in the settling pond will provide sufficient protection as oncomelania carrying species will be settled to the bottom.

 Lakes/Channels Rehabilitation

121. Various measures will be undertaken to ensure full benefits of lakes/channels rehabilitation. Wastewater discharge around the three lakes will be intercepted to WWTPs. A permanent management unit will be established to manage and maintain the improved lakes/channels whose responsibilities may include ecological dredging every 2 or 3 years, ecological restoration, etc. In addition, regular water quality monitoring of lakes/channels will be carried out.

122. For aquatic system restoration and landscaping works, , only aboriginal biological species will be adopted in consideration that alien species may impose a risk of destroying the local biological balance.

123. The proper management and maintenance of the restored aquatic eco-system in lakes/channels is a key to Project efficiency and sustainability. In case of dead plants, the wrack will be cleaned up regularly to prevent it from entering the lake and settling at the bottom, causing secondary pollution due to its high organic content.

 Pumping Station

124. Sixin PS will be designed with efficient acoustic mitigation measures, such as soundproof doors, double–glazed windows, and adequate wall thickness to mitigate the pump noise. In addition, no less than 20m of green area surrounding the PS will be set to further control the noise. The external appearance of the PS will be designed to harmonize well with the surrounding landscape.

125. The PS is estimated to generate 3,300t of screenings every year, which will be collected daily and transported to the sanitary landfill in a closed container.

27

 Land Acquisition and Resettlement13

126. The Project will affect 2 districts (i.e. Hanyang and Hongshan), 3 street communities, and 16 villages by permanent land acquisition and resettlement. The total amount of permanent land acquisition is approximately 3423.55 mu, of which 1,534.89 mu is state-owned and 1888.66 mu is collective land. A total of 376 households with 1,365 persons and 22 companies are affected, with a demolition area of approximately 126,536 m3 and 31,957 m3, respectively. There are 14 shops with 33 employees affected by the Project. In addition, some public infrastructure and facilities will be affected, including electric poles and four high voltage transmission line towers.

127. The total cost for resettlement is estimated at approximately CNY1.186 billion, including compensation for land acquisition, resettlement, specific facility, etc. Resettlement impacts have been identified in the resettlement plans (RPs) prepared in line with the PRC land law and ADB’s Policy on Involuntary Resettlement. The RPs provide a socioeconomic profile of affected people and the scope of impacts, and address issues on compensation entitlement, legal framework, public consultations, grievance procedures, rehabilitation measures, budget and implementation milestones. Resettlement requirements have been carefully considered and incorporated into the project design.

128. All affected people will be compensated and resettled in a timely and adequate manner and in accordance with the RPs, so that they will be at least well-off as they would have been without the Project. To ensure that affected people have been adequately compensated and rehabilitated, WMG and IA will (i) keep ADB informed of the progress in implementing the RPs through quarterly progress reports until the resettlement is completed; and (ii) prepare the resettlement completion report. The PMO and IA will engage an independent agency for the semiannual monitoring and annual evaluation of land acquisition and resettlement until two years after land acquisition, resettlement implementation, and completion of resettlement.

VI.ECONOMIC ASSESSMENT

129. The total estimated project cost is approximately USD 506.5 million equivalent, including the ADB loan of USD100 million (19.7% of the total investment) and the counterpart funding of USD 406.5 million (80.3%).

130. The economic internal rate of return (EIRR) is calculated for each component and for the whole project, which takes into account the main quantifiable economic benefits of different components and includes all related project costs. In addition, the EMP costs are part of the project costs.

131. The weighted average EIRR for the whole project is estimated at approximately 20.48%,

13 Data here will be updated after the resettlement plan being updated.

28 exceeding the economic opportunity cost of capital which is assumed to be no less than 12%. Table 12 shows the weighted average EIRR for each project component. 29

Table 12. Economic Internal Rate of Return of Each Project Component No. Component EIRR (%) 1 Wuhan Sludge Treatment and Disposal 18.21 2 Wuhan New Zone Lake/Channel Rehabilitation and Pumping Station 2a Wuhan New Zone Lake/Channel Rehabilitation 21.54 2b Sixin Pumping Station 19.32 3 Yangchun Lake Secondary Urban Center Lake/Channel Rehabilitation 20.54 Source: PPTA Final Report, 2009.

VII.ENVIRONMENTAL MANAGEMENT PLAN

 Environmental Management

132. The EMP covers all phases of the Project, including project preparation, design, construction, commissioning and operation, which aims to ensure that the Project will be implemented in an environmentally acceptable manner. The EMP, attached in Appendix 2, details the plans, institutional arrangements and procedures to undertake the mitigation measures and monitoring requirement during each phase of the Project. The EMP involves two plans, one for implementation of mitigation measures and the other for carrying out environmental monitoring, which describes who will do what, when and how. Moreover, responsible parties will be well identified to clear up any confusion or discrepancy in implementation or accountability.

133. The implementation of environmental mitigation measures and environmental monitoring has been estimated to cost approximately CNY10.94 million and CNY1.346 million, respectively. Additional CNY0.35 million will be provided for training in the field of environmental management and technology for the relevant staff, including the environmental officer of WPMO, the environmental management staff of the IA and implementing units (IUs), contractors and construction supervision companies, etc.

134. Costs for all mitigation measures during construction will be included in the bidding documents and civil works contract and will be borne by contractors. Costs related to mitigation measures during operation will be borne by the IA. The cost of the loan implementation environmental consultant (LIEC) and training will be borne by the Project as a whole.

 Environmental Monitoring

135. The program for environmental monitoring has been developed and organized for each component of the Project, which is similar to the mitigation measure plan. Monitoring requirements have been clearly defined, including the parameters to be monitored, the number and location of sampling, and the monitoring frequency and duration. Monitoring will be undertaken by the Wuhan Environmental Monitoring Centre (WEMC), under the supervision of

30 the Municipal Environmental Protection Bureau (EPB). The laboratory of WEMC is appropriately certified, assuring the accuracy of results and their legal standing. Moreover, monitoring costs will be borne by contractors during construction and by IAs during operation.

136. The environmental officer of PMO will collect the environmental monitoring data and reports from the IA, the WEMC, and construction supervision companies (CSCs) that are responsible for supervising the contractors’ implementation of mitigation measures. The data will be incorporated into project progress reports and will be submitted to the EA and ADB semiannually during construction and operation.

 Institutional Enhancement

137. The PMO, contractors, CSCs, and the IA/IUs will each nominate full time environmental specialists, who are properly trained and qualified to undertake environmental management activities, to ensure the effective implementation of the EMP. Due to their limited environmental management capacities, a series of training sessions has been designed for the agencies mentioned above in order to strengthen their relevant capacity, which is described in detail in the EMP.

VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

 Public Participation during the Project Preparation Period

138. Two rounds of public consultation were undertaken during the preparation of EIA reports and the SEIA report. The first round of public consultation was implemented by the EIA Institute or Wuhan Project Management Office (WPMO) via two forms of public disclosure. The first round of public disclosure was to post the project information on the website of the EIA Institute and WPMO14; and the second round was to post the simplified EIA report on the website of HEPB. Moreover, additional public disclosure was undertaken for the subcomponent of Wuhan New Zone Lake/Channel Rehabilitation by sending the letter to related local government departments and enterprises to solicit comments and suggestions regarding to the Project.

139. The detailed schedule of public disclosure for each component is shown in Table 13.

Table 13. Schedule of the Public Disclosure First Round of Public Second Round of Public Additional Public Component Disclosure Disclosure Disclosure WSTD August 9, 2012 October 16, 2012 -

14 The project information for Sixin Pumping Station was posted on the website of WPMO. 31

First Round of Public Second Round of Public Additional Public Component Disclosure Disclosure Disclosure WNZLCR April 17, 2009 June 29, 2009 July 3, 2009 SPS April 17, 2009 November 2, 2009 - YLSUCLCR April 17, 2009 June 28, 2009 - SPS = Sixin Pumping Station, WSTD = Wuhan Sludge Treatment and Disposal, WNZLCR = Wuhan New Zone Lake/Channel Rehabilitation, YLSUCLCR = Yangchun Lake Secondary Urban Centre Lake/Channel Rehabilitation. Source: EIAs and WPMO, 2009 and Wuchangbei STP EIA, 2012.

140. The second round of public consultation was undertaken by the local EIA Institute and the PPTA Environmental Consultants during late June and mid August 2009 except for the subcomponent of Sixin Pumping Station 15 . A questionnaire survey was distributed to the project-affected people and beneficiaries, covering different age groups, genders, educational backgrounds, and occupations. These project-affected people and beneficiaries include local residents, shop owners, peasants, workers, school children, as well as the water users downstream of Qinduankou Channel (where the water flows into the project lakes and channels) and Dongfeng Water Gate (where the project water flows into the Yangtze River). The investigation result was analyzed and presented in Table 14.

Table 14. Analysis of Questionnaire Survey Component Result WSTD WNZLCR SPS YLSUCLCR

Questionnaires Distributed (copies) 50 70 50 53 Questionnaires Received (copies) 50 70 50 53 Ratio of Male vs Female 0.56:1 1.59:1 1.5:1 1.65:1 People Who Support the Project (%) 56 80 20 74 People Who Accept the Project (%) 44 20 30 26 People Who Express Concerns about - Potential Negative Impacts of the - - - Project (%) Note: The residents living nearby the proposed pumping station Sixin Pumping Station will be resettled as part of the other projects, to be conducted by the Government. Source: EIA reports and WPMO, 2009 and WuchangBei STP EIA Report, 2012 .

141. Based on the two rounds of public consultation, major concerns of the public include air pollution, dust, noise, environment, health and safety during constructions, control and sanitation of sludge treatment site, etc., which have been fully considered in the final EIA report and EMP.

15 The second round of public consultation for the subcomponent of Sixin Pumping Station was carried out in November 2009. All comments received were fully mitigated. This is done even with the prior knowledge that project affected people for this subcomponent will be resettled as part of other activity not related to the project..

32

 Future Plans for Public Participation

142. During public consultation, some participants also showed their concerns on the negative impact during project construction, such as noise and dust. It is very important to maintain a dialogue with the stakeholder throughout the construction phase through continued public consultations. Such dialogue will ensure that public concerns will be understood and dealt with in a timely manner. The EMP has developed future plans for public involvement.

 Project Information Dissemination

143. The SEIA report is available for review at www.adb.org.

IX. PROJECT RISKS AND ASSURANCES

144. The potential risks of the Project include (i) sludge beneficial use is constrained by its poor quality; (ii) soil contamination and groundwater pollution due to improper temporary storage and disposal of the dredged sediment; and (iii) inadequate pollution interception measures for the improved lakes and channels, and poor enforcement causes secondary water quality deterioration in targeted water bodies. The following are the list of project assurances to mitigate the above risks.

145. Inadequate sludge quality for its intended beneficial use is mitigated through the extensive studies done during project preparation that ensures the sustainability of the proposed sludge utilization options (see Ch IV.B). The sludge quality will be monitored regularly and appropriate decisions will be made on its alternate disposal at landfills as of the EMP provisions. As of the agreed upon monitoring and mitigation plans during both construction and operation, WMG will conduct project sludge monitoring in accordance with the sampling locations, frequencies and parameters specified in the EMP.

146. Soil contamination and groundwater pollution due to improper temporary storage and disposal of about one million m3 of the dredged sediment will be prevented through the adequate selection and management of the storage and treatment sites. The appropriate treatment and storage sites are carefully selected, and the treatment process is identified. The project will have an assurance that the detailed planning and construction procedures for storage, dewatering and disposal of the dredged sediment will be developed by the design institutes and approved by the Municipal EPB before dredging works start; and that the relevant technical requirements will be included into the bidding documents and construction contracts for the dredging works. 147. To ensure the water quality in the project channels and lake and the Yangtze River, the project will have an assurance that the WMG will enact and implement a sound pollution control 33 action plan for both point and non-point sources, to stop the direct wastewater discharge and refuse dumping in the Project area before the start-up of construction.

148. The Yangtze River is believed to be a very sensitive environmental and ecological issue. In order to fully mitigate potential impacts on the project's channels and lakes and the Yangtze River, the detailed studies on the ecological and environmental impacts were conducted within the EIA and FS work. This includes application of mathematic modeling to ensure sufficient water circulation to achieve the desired water quality for all project lakes and channels. The study result indicates that the project has no negative impact on the targeted water bodies. The project will have an assurance that by project completion WMG will appoint/reappoint an entity responsible for management, maintenance, bioremediation and ecological restoration of the improved lakes and channels after the Project implementation.

149. The other project environmental assurances are: WMG shall ensure, and shall cause the Implementing Agencies to ensure that (i) the Project Facilities be constructed, operated, maintained and monitored in strict conformity with all relevant laws and regulations of the Borrower, including all applicable national and local environmental protection laws, regulations and standards for wastewater treatment, sediment and sludge disposal, and the environmental mitigation measures recommended in the EMP and the EIAs for the Project are implemented; (ii) the mitigation measures be incorporated into the design and bidding documents and construction contracts; (iii) justification be provided to ADB for any proposed changes to the mitigation measures required during design, construction, operations and maintenance and provided to ADB within 60 days if any changes to EIA have to be implemented for safety or emergency reasons; and (iv) environmental monitoring programs will be monitored and recorded under the guidance and supervision of the Wuhan Municipal Environmental Protection Bureau and the monitoring information will be submitted to ADB in Project progress reports.

X.CONCLUSIONS

150. The Project has a number of important special features as follows:

151. The sustainable sludge treatment and disposal component is a pioneering feature addressing comprehensive sludge management for the first time in ADB assistance to the PRC. The Project preparation has significantly influenced the design of the sludge treatment component towards environmentally friendly and sustainable solution, developing high potential replication PRC-wide and contributing to the development to the nation-wide policy.

152. The project will reestablish urban water patterns, correcting the negative impact of unchecked urbanization, and provide solutions for integrated surface water management. The important feature of project water management will be an adequate EMP monitoring and

34 mitigation system, adequate to maintain the desired surface water quality. In addition the project will support a water quality model that will assist in long term planning, water quality assurance and emergency response.

153. The other important feature of the Project is the optimization of all of the Wuhan's WWTPs. It will also improve the performance of the infrastructure financed by the previous two ADB projects. Optimized WWTPs will respond to a number of important energy, environmental and climate change concerns.

154. Wuhan City is significantly vulnerable to climate change. Project initiatives in both climate mitigation and adaptation will introduce valuable approaches and activities for developing climate resilience and low carbon economies.

155. The Project will bring significant benefits to more than 3 million residents of Wuhan municipality by improving living conditions, public health, and the urban environment. Sustainable treatment and disposal of WWTP’s sludge and ecological rehabilitation of polluted urban lakes and channels will have a solid demonstration potential for replication in other PRC cities. The major environmental benefits of the Project include: (i) solving the challenge of huge amounts of sludge from existing WWTPs by sustainable sludge treatment and disposal of 52 dry t/d; (ii) influencing the city’s master plan for sludge treatment and disposal from centralizing to decentralizing, and from incinerating to using an environmentally friendly, pragmatic, sustainable and integrated approach; (iii) rehabilitating project lakes and channels by restoring natural water circulation, by improving surface water body quality, restoring the ecosystems, and enhancing the biological diversity in lakes and channels; (iv) strengthening the functions of artificial wetlands for water quality polishing, flood storage, wildlife habitats, and water conservation education; and (v) promoting landscaping and reforestation along lakes and channels, contributing to overall climate change responsiveness.

156. Potential adverse environmental impacts during both project construction and operation stages include odor from the dredged sediments and WWTPs’ sludge, as well as secondary pollution in water bodies due to polluted dredged sediments, airborne dust, odor, noise, traffic congestion, wastewater discharge from construction sites, soil erosion, land occupation, etc. Based on the conclusions of the EIAs, potential project impacts Project will be minimized to an acceptable level by implementing and adequately funding the agreed upon environmental monitoring and mitigation measures.

157. The results of public consultation indicated that most of the affected people have a positive attitude toward the Project and believe that the Project will benefit the local environment, living standards, public health, and economic development. Negative opinions on the Project focused on localized odor, soil contamination, and air pollution issues associated with the construction and operation of facilities/works in some individual subcomponent. Environmental 35 mitigation measures included in the EMP have been developed to fully address and mitigate these concerns.

36 Appendix 1

REFERENCES

 Documents and Reports

1. ADB. 2002. Environmental Policy. Manila. 2. ADB. 2003. Environmental Assessment Guidelines. Manila. 3. ADB. 2003. Operations Manual. Section 20: Environmental Considerations in ADB Operations. Manila. 4. Environmental impact assessment reports for each component, 2009 5. Feasibility study reports for each component, 2009 6. Eleventh Five-Year Plan of Wuhan City 7. 2009 Year Book of Wuhan City 8. Master Plan of Wuhan City (1996-2020) 9. Master Plan of Wuhan New Zone 10. Wuhan Aquatic Eco-system Protection and Rehabilitation Plan (September 2006) 11. Report on Rivers / Lakes Connection Pilot Project in Hanyang , Wuhan (November 2005) 12. Urban Water Environmental and Biological Plan for Hanyang District, Wuhan (March 2004) 13. Wuhan WWTP Sludge Treatment and Disposal Plan 14. Wuhan Environmental Sanitation Plan (2006-2020) 15. Six Lakes Water System Network Plan of Wuhan New Zone

 Laws and Regulations

1. Environmental Protection Law of PRC (26 December 1989) 2. Water Law of PRC (1 October 2002) 3. Culture Heritage Protection Law of PRC (28 October 2002) 4. Water Pollution Prevention Law of PRC (15 May 1996) 5. Air Pollution Prevention Law of PRC (1 September 2000) 6. Noise Pollution Control Law of PRC (1 March 1999) 7. Solid Waste Pollution Control Law of PRC (1 April 2005) 8. Land Management Law of PRC (1 January 1999) 9. Environmental Impact Assessment Law of PRC (1 September 2003) 10. Flood Control Law of PRC (1 January 1998) 11. Water and Soil Conservation Law of PRC (29 June 1991) 12. Solid Waste Pollution Prevention Law of PRC (30 October 1995) 13. Cleaner Production Promotion Law of PRC (29 June 2002) 14. River Management Regulation (10 June 1988) 15. Culture Heritage Protection Regulation of PRC (1 July 2003) 16. Environmental Protection Management Directories for Construction Projects (No. 9), issued by State Environmental Protection Administration (SEPA) (1 January 2003) 17. Environmental Protection Management Regulations for Construction Projects, issued by the State Council of the PRC (28 November 1998) 18. Municipal Wastewater Treatment and Pollution Control Technical Policy, jointly issued by Construction Ministry, SEPA, the Ministry of Science and Technology (29 May 2000) 19. National Dangerous Waste List (6 June 2008) 20. Notice to Circulate the Guideline of National Biological Protection (26 November Appendix 1 37

2000) 21. Notice to Strengthen the Environmental Impact Assessment and Management of Construction Projects Financed by Loan from International Financial Organizations, jointly issued by SEPA, the State Planning Commission, the Ministry of Finance and the People’s Bank of China (21 June 1993) 22. Wuhan Lake Protection Regulations (18 January 2002) 23. Environmental Protection Management Regulation of Hubei Province (2 December 1994) 24. Air Pollution Prevention Regulation of Hubei Province (Revised in 30 July 2004) 25. Wuhan Dangerous Waste Prevention Control Approach (10 May 2003)

 Guidelines and Standards

1 Surface Water Quality Standard of PRC (GB3838-2002) 2. Ambient Air Quality Standard of PRC (GB3095-1996) 3. Groundwater Quality Standard of PRC (GB/T14848-93) 4. Urban Environmental Noise Standard (GB3096-93) 5. Soil Quality Standard of PRC (GB15618-1995) 6. Emission Standard for Odor Pollutants of the PRC (GB14554-93) 7. Environmental Impact Assessment Technical Guideline (HJ/T2.1-2.3-93, HJ/T2.4-1995, HJ/T19-1997), issued by SEPA 8. Integrated Emission Standard of Air Pollutants (GB16297-1996) 9. Integrated Wastewater Discharge Standard (GB8978-1996) 10. Municipal Sewer Discharge Standard (CJ3082-1999) 11. Noise Limit of Construction Site Boundary (GB12523-90) 12. Environmental Risk Assessment Technical Guideline for Construction Project (HJ/T169-2004) 13. The Control Standards of Pollutants in Sludge for Agricultural Use of the PRC (GB4284-84) 14. City and Town WWTP Pollutants Standard (GB18918-2002) 15. City and Town WWTP Sludge Quality (CJ247-2007) 16. City and Town WWTP Sludge disposal Classification (CJ/T239-2007) 17. City and Town WWTP Sludge Disposal Quality for Combined Landfill (CJ/T249-2007) 18. City and Town WWTP Sludge Disposal Quality for Gardening and Greening (CJ/T248-2007) 19. City and Town WWTP Sludge Disposal Quality for Soil Conditioner (CJ/T291-2008) 20. Urban Wastewater Treatment and Pollution Control Technology Policy (May 2000) 21. City and Town WWTP Sludge Treatment & Disposal and Pollution Control Technology Policy (pilot edition, 18 February 2009)

38 Appendix 2

SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

WUHAN URBAN ENVIRONMENTAL IMPROVEMENT PRJECT

IN THE

PEOPLE’S REPUBLIC OF CHINA

APPENDIX 2

ENVIRONMENTAL MANAGEMENT PLAN

Updated in September 2013

Appendix 2 39

CONTENTS

A. Introduction 1

B. Summary of Potential Impacts and Mitigation Measures 1

C. Environmental Monitoring 13

D. Public Consultation 24

1. Public Consultation during Project Preparation 24

2. Future Public Consultation Plan 24

E. Responsibilities and Authorities for Implementation 26

1. Responsibilities and Authorities for Implementation 26

2. Institutional Strengthening and Training 28

F. Reporting and Supervision 30

G. Work Plan 32

H. Procurement Plan and Cost Estimates 32

I. Mechanisms for Feedback and Adjustment 33

40 Appendix 2

ENVIRONMENTAL MANAGEMENT PLAN

 Introduction

 The environmental management plan (EMP) was prepared by the environmental consultants of project preparatory technical assistance (PPTA) in conjunction with the local environmental impact assessment (EIA) institute on the basis of the EIA reports and other project documents. It is an essential legal document to ensure the implementation of mitigation measures so that the environment within the project area will be well protected. The EMP covers all phases of the project, including project preparation, design, construction, commissioning and operation.

 Appropriate environmental monitoring programs will be developed and carried out, and the monitoring data will be used to evaluate (i) the extent and severity of real environmental impacts against the predicted impacts; (ii) the performance of the environmental protection measures and/or compliance with the relevant laws and regulations; (iii) developing tendency of the impacts; and (iv) the overall effectiveness of EMP for the Project.

 Environmental protection measures will (i) mitigate the negative environmental impacts; (ii) achieve the compliance with the national and local environmental protection requirements; (iii) provide necessary compensation for the loss of environmental resources; and (iv) use natural resources effectively.

 Summary of Potential Impacts and Mitigation Measures

 The potential environmental impacts of the Project during the design, construction and operation phases, indentified in the each individual EIA report, as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table A2.1. The mitigation measures will be incorporated into bidding documents (where appropriate), construction contracts and operational management plans, which will be implemented by contractors and implementing agency (IA) under the supervision of supervision agencies (SAs) which will ensure compliance with the EMP, and undertake EMP monitoring and inspections. SAs include: (i) during detailed design and preconstruction phase, the IA and sub-IAs, as well the the Wuhan project management office (WPMO); (ii) during construction, the Hubei Environment Supervision Team (HEST) under the Hubei Provincial Environmental Protection Bureau (HEPB), the Wuhan Hongshan Environmental Monitoring Station (WHEMS), the Wuhan Provincial Environmental Monitoring Station (WPEMS), and construction supervision companies (CSCs) hired by the IA and/or sub-IAs; and (iii) during operation, the HEPB, the Yangzte River Commission (YRC) and HEST.  The effectiveness of these measures will be evaluated on the basis of environmental monitoring results and environmental site inspections to determine whether they should be continued or improved/adjusted. The improved measures need to be confirmed through stipulated environmental management procedures. Resettlement plans were developed to Appendix 2 41 ensure the proper resettlement of the affected persons and avoid deterioration in their living standard due to the Project. The required actions are described in details in the resettlement plans for the individual component.

42 Appendix 2

Table A2.1. Potential Impacts and Mitigation Measures Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R A. Design Phase Surface Impact of the  The pollution Water wastewater control plan has discharge to been prepared to the Yangtze mitigate the River due to pollution from point Water the project of and non-point DI Investment 2 2 water source near the company circulation lakes and channels among six related to the lakes Project.

Air Odor from the  The width of disposal site of sanitary protection dredged zone will be sediment carefully considered during the site selection for Jianxing DI 3 3 the dredged company sediment disposal, so that the odor will not have the adverse impact on nearby residents. Appendix 2 43

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R

Odor from  Negative pressure sludge heat design and drying adoption of odor DI WUDDC 1 1 removal facility.

Groundwate Leachate from  Design seepage r sludge drying prevention in WWTPs measures for the sludge drying unit, sludge stirring unit and sludge air DI WUDDC drying unit; collect the leachate produced from the sludge drying.

Leachate from  Review the temporary locations selected treatment site for treatment site; for dredge  Design the

sediment adequate anti seepage measures based on the geological situation.

44 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R Ecology Wide spread of  Build grit chamber oncomelania at Qinduankou Water and Channel DI Investment 1 1 schistosomiasi company s

B. Construction Phase Surface Domestic  Domestic Water wastewater wastewater will be from collected and construction treated by using site small-scaled compact wastewater treatment facility, and then Contractor HEST 20 5 10 35 discharged after it meets Class of the national discharge standard;  The washroom will be removable, and the night soil will be treated as the solid waste; Appendix 2 45

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R  The canteen will adopt the oil-water separator and undertake the regularly cleaning; moreover, the sealed waste bucket will be set.

Wastewater  The sedimentation from tank will be set for construction the foreground of machinery stirring machine and the site of vehicle washing, the wastewater will not be discharged Contractor HEST 9 10 2 5 26 to municipal sewer system directly, which will be recycling use or sprayed to mitigate the dust after sedimentation;  The waste

46 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R unrestrained on the construction site will be cleaned timely, and the materials will be piled up with the practice of stormwater proof and eluviation proof to prevent it from entering the river course and polluting the water.

Wastewater  Set up oil-water from dredger separator on dredgers to avoid discharging the Contractor HEST 5 1 6 pollutants into the lakes.

Muddy runoff  Build the specific from the water recycling and construction discharge channels Contractor HEST 2 2 4 site to achieve the separate and Appendix 2 47

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R smooth discharge without the stormwater overflow in rainy days;  During the construction of artificial wetland and channel landscaping works, the interception ditch will be set between the construction site and water body, and the runoff will be intercepted and settled to meet the relevant standard for recycling use to mitigate the dust, without discharge.

Wastewater  Undertake the Contractor HEST 20 20 discharged to wastewater

48 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R the Yangtze interception (not River after the included in this internal project) before the circulation in 6 beginning of each lakes individual component to prevent the local untreated wastewater from being directly discharged into the lakes and channels;  Develop pollution control measures for non-point source, such as cleanup of solid waste etc.

Air Dust on the  Set up the hoarding construction around the site demolition site Contractor HEST 15 30 5 12 62 which is no lower than 2.5m and no joint seams; Appendix 2 49

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R meanwhile, during the demolition activities, water spraying will be undertaken regularly to mitigate the dust, and the waste residues will be cleaned up within 3 days after the construction completion;  Set up efficient dust sheets outside scaffold;  Spray water on the operation surface and temporary earth deposits and keep a certain moisture to mitigate the dust;  The transportation of earthwork and waste residues will

50 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R utilize sealed vehicles; meanwhile, there will have vehicle washing facilities at the entrance of construction site to avoid the soil and sand being carried away from the site;  The transportation route will avoid the urban area, so that the residents will not be influenced;  Cement and other granular materials that subject to dispersion will be stored in a hermetically way;  Backfilling and transportation of earthwork and other construction Appendix 2 51

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R activities leading to the dust pollution will not be carried out under the condition of strong wind.

Exhaust  Carry out the pollution from regular check and construction maintenance on vehicles or facilities and machines vehicles, and ensure they are in a good working condition to mitigate the exhaust Contractor HEST 20 2 9 31 emission and meet the relevant national emission standard;  Replace those vehicles which consume too much oil with low efficiency and

52 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R non-compliance of emission standard;  Use low sulfur fuel oil for facilities and vehicles.

Groundwate Oil leaked from  Adopt the r construction anti-seepage site design for the warehouse and undertake the specific measures Contractor HEST 2 2 4 for the storage and usage to avoid the oil leakage and groundwater pollution.

Noise Noise from  Optimize the construction construction plan site and arrange the construction Contractor HEST 5 10 5 5 25 schedule properly to minimize the impact of noise; Appendix 2 53

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R  Design the scientific construction plan to avoid utilization of high-noise facilities at the same time;  Turn off facilities which are not used;  Do not set up the concrete mixer on the construction site and use commercial concrete;  High-noise facilities can be only used during 7:00-12:00/14:00-2 2:00; in case of continuous construction, it must be approved by Wuhan Environmental Protection Bureau;  Any high-noise

54 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R facilities, such as air compressor, will be set up at the place which is far away from the sensitive receivers (e.g. residential area), and need the regular maintenance ;  Vehicles will reduce the speed when entering the construction site, and use low-noise horns.

Odor Dredging of  Dredging will be lakes and undertaken in channels winter to minimize the impact of odor Contractor HEST 10 6 16 to the nearby residents  The dredged sediment will be Appendix 2 55

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R transported by the sealed vehicles to avoid the scattered sediment and its odor;  Undertake the dredging by sections; and the dredged sediment will be transported to the landscaping site or landfill site timely.

Solid Waste Construction  Set up sealed and domestic waste collection wastes house at generated on construction site; construction and the site construction wastes Contractor HEST 9 10 2 7 28 and domestic wastes will be collected separately;  The environmental

56 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R sanitation department will be committed to clean the solid waste every day;  Wastes will be transported by sealed container and specific route;  The sands, materials, steels and packaging material left during construction will be collected and cleaned by the person specifically appointed;  Once the toxic solid waste is found at construction site, the construction activities should be suspended; the local EPB will be Appendix 2 57

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R contacted first, and the construction can be continued after the relevant measures are undertaken by the EPB.

Dredged  The adequate anti Sediment seepage measures will be adopted;  The major facilities used to treat the dredged sediment include filtration tank, storage unit and sedimentation Contractor HEST 250 20 270 tank;  The treatment processes involve the sludge dewatering and storage and effluent treatment;  The effluent will be

58 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R settled in the sedimentation tank no less than 3 days;  The treatment site will be cleaned and restored to original state in a timely manner after the construction is completed, and will be inspected and accepted by the local EPB;  The treated sediment from lakes will be utilized for lake landscaping and wetland construction nearby; in case of the quality exceeding the standard (see para. 36 of the SEIA main text), the sediment Appendix 2 59

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R will be transported in sealed containers to the landfill sites.  The transportation route is selected to avoid major residential and commercial areas and the transportation will not be done on peak hours and nighttime.

Social Traffic  The transportation Congestion of construction material and spoils will avoid the peak hours;  The police will take Contractor HEST 1 1 proper measures to ease traffic congestion during peak hours;  Overloading is

60 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R forbidden to avoid scattered materials, which may destroy the roads;  Set up the temporary road and warning signals.

Cultural  If the cultural relics heritage were found during construction, it is important to contact the local cultural relics department and protect the site; the construction can be continue Contractor HEST after the relevant measures are undertaken by the cultural relics department finishing arrangement.

Appendix 2 61

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R Ecology Vegetation  Replant trees after the construction completion to ensure that there is Contractor HEST 100 10 40 150 no loss of green area.

Soil Erosion  The earthwork will be piled up properly, meanwhile, cover tarpaulin on materials or soils when there is heavy rain or wind;  Set up drainage Contractor HEST 60 5 25 90 ditches around construction site to drain off the ponded-water;  Adopt the anti-corrosion treatment for lake sediment piled up, such as cover

62 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R waterproof tarpaulin or soil, and tree planting (e.g. reed, grass lawn), etc.

C. Operation Phase Surface domestic  The production Water wastewater wastewater will be and collected and wastewater routed to the produced from WWTP inflow for sludge drying treatment; process  Domestic wastewater will be WUDDC HEST 2 2 piped to the regulation tank for re-treatment after being treated by the existing septic tank in WWTP

Wastewater  Strengthen the discharged to management on Hanyang Water WMG/ HPEPB 5 5 the Yangtze point and non-point Bureau/ WEPB River after the source pollution Appendix 2 63

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R internal around circulation in lake/channel areas, six lakes and strictly forbid dumping wastes along the bank.  Continue to improve and update the WQM to better perform its functions.

Deterioration  The volume of of lake water water intake will be quality adjusted according to the project WWRB YRC monitoring data and data collected by the local EPB.

Water pollution  Set up isolating belt caused by between ecological artificial wetland and lakes, Wuchang Water HEST 5 5 10 wetland and monitor/control Bureau the effluent of wetland treatment

64 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R before discharging into the lake; in case of the treatment with poor performance, necessary adjustment will be undertaken timely;  Clean up the debris of dead aquatic plants in a timely manner to avoid their re-deposition in the lake.

Odor Odor from  Treat odor sludge pollutants by transportation acid/alkali washing and drying + bio-filter process; process  Build shelter belt at WUDDC HEST 130 130 the plant boundary; plant trees, shrubs and other plants with better deodorant effect Appendix 2 65

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R along the roads of WWTP to reduce the impact of odor pollutants to surroundings;  Conduct regular odor monitoring, and take measures (e.g. spraying deodorant) once abnormal phenomena occurred;  Adopt sealed vehicles to transport the sludge; the transportation route will avoid the residential areas and sensitive receivers; and the transportation will not be done on rush hours and

66 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R nighttime.

Noise Noise caused  Build the sludge by sludge dewatering room, drying process sludge stirring room and sludge air drying field using enclosure structure to insulate sound and reduce noise; and adopt double glass for the WUDDC HEST 120 120 window of buildings;  Control the noise from fans and air compressors by muffler and sound insulation technology.

Noise from  Set up noise storm water elimination and Hanyang Water HEST 40 40 pump and bar sound absorption Bureau screen facilities for the Appendix 2 67

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R machine major noise sources; install separate base and rubber gasket for machines;  Set up three-layer greenbelt (arbor – shrub - arbor) more than 20m around the plant boundary;  Adopt the design of closed window in ensuring the enough ventilation and heat dissipation of pumping house, and install muffler at ventilation opening if necessary.

Ground Leachate from  Collect and pipe the water sludge drying leachate produced process during the sludge WUDDC HEST 3 3 drying process to the regulation tank

68 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R for re-treatment via the internal pipeline of WWTP.

Dried sludge In case of poor quality from sludge as per its monitoring treatment plant results, the sludge will be disposed to landfill WUDDC HEST sites as a backup option.

Solid Waste Domestic  Sorted and waste collected by special containers, and then delivered to the environmental WUDDC HEST 0.5 0.5 1 sanitation department for centralized treatment.

Screenings  Collected and from pumping transported to Hangyang Water HEST 2 2 station landfill sites for Bureau disposal. Appendix 2 69

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R Ecology Fishes in the  The mesh for Yangtze River protecting the and the Han fishes will be set up Hangyang Water River where water flows HEST Bureau into / out the project lakes and channels.  Pollution from  Appoint the staff to artificial maintain and wetland manage the ecological rehabilitation Wuchang Water project; meanwhile, HEST 2 2 4 Bureau for dead plants, clean up the debris and replant them in a timely manner.

Spread of  Regular monitoring Oncomelania and elimination of and the oncomelania by Wuchang Water schistosomiasi Wuhan Blood HEST 2 2 Bureau s Anti-epidemic Department

70 Appendix 2

Budget (CNY10,000) Subtotal Potential YLSU Subject Mitigation Measures IA SA WST WNZLC SP (CNY10,000 Impact CLC D R S ) R Total 1,094 DI = design institute, EPB = environmental protection bureau, HEST = Hubei Provincial Environmental Supervision Team, HPEPB = Hubei Provincial Environmental Protection Bureau, IA = implementing agency, SA = supervision agency, SPS = Sixin Pumping Station, WEPB = Wuhan Environmental Protection Bureau, WMG = Wuhan Municipal Government, WNZLR = Wuhan New Zone Lake/Channel Rehabilitation, WSTD = Wuhan Sludge Treatment and Disposal, WUDD = Wuhan Urban Drainage Development Co. Ltd., WWRB = Wuhan Water Resource Bureau, WWTP = wastewater treatment plant, YLSUCLCR = Yangchun Lake Secondary Urban Center Lake/Channel Rehabilitation, YRC = Yangtze River Commission. Notes: (i) The budget for mitigation measures during design period will be included in the detailed design contract; (ii) The budget for mitigation measures during construction will be included in the bidding document and construction contract; and (iii) The budget for mitigation measures during operation will be included in the operation budget of implementing agency / units. Source: EIA report for each individual component and relevant PRC environmental management plans.

Appendix 2 71

 Environmental Monitoring

 The project monitoring program will focus on the environment within the project area. A detailed environmental monitoring program is shown in Table A2.2, which covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated cost. The monitoring will comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards followed are the national environmental quality standards and the pollutant discharge & emission standards. For ensuring the accuracy of monitoring data, the QA/QC procedure will be conducted during the monitoring activities in accordance with the following documents:

 Regulations of QA/AC Management for Environmental Monitoring issued by SEPA;  QA/QC Manual for Environmental Water Monitoring (Second edition), published by the State Environmental Monitoring Centre; and  QA/QC Manual for Environmental Air Monitoring published by the State Environmental Monitoring Centre.

 Internal Monitoring and Inspection. During the construction phase, the IA with the supervision from WPMO will recruit construction supervision companies (CSC) to undertake the internal environmental monitoring and inspections, so that the environmental mitigation measures are being properly implemented. The regular inspections and audits will mainly cover the construction activities as well as reviewing of the affected environment, which will be well documented and filed. The IA and contractors will be informed of the outcomes. During the operation phase, the IA and operation & maintenance (O&M) companies will be responsible for the internal monitoring, and the findings will be reported to WPMO, WEPB and HEPB. In addition, the internal monitoring and inspection programs will be carried out more frequently than the compliance monitoring programs.

 Compliance Monitoring and Inspection. Wuhan Environmental Monitoring Centre (WEMC) under the WEPB will be responsible for the regular and random compliance monitoring and inspection before, during and after the construction, as well as the event of emergencies. In case the abnormalities are found, WEPB will impose a fine and issue a notice of rectification with a specific deadline. Moreover, if complaints are received from the public, WEPB’s staff will immediately carry out the additional inspections.

 Environmental Acceptance Monitoring and Audit. Within three months after the construction completion or no later than one year with the permission form the local environmental authority, the environmental acceptance monitoring and audit reports on the completion of the subcomponents will be (i) prepared by a qualified environmental institute in line with the People’s Republic of China (PRC) regulation on project completion environmental audit (Ministry of Environmental Protection (MEP), formerly State Environmental Protection Administration (SEPA), 2001); (ii) reviewed and approved by the

72 Appendix 2

environmental authority that have approved the EIA reports; and (iii) finally submitted to Asian Development Bank (ADB).

 The environmental monitoring, including the environmental benefit monitoring, will be incorporated into the project performance management system (PPMS) indicators for the Project. The WPMO, with the assistance of the IA, will be responsible for analyzing and consolidating the data via their management information system (MIS). The PPMS will be designed to allow the adequate flexibility to adopt remedial actions regarding the project design, schedules, activities and development impact. At the beginning of the Project, the WPMO, IA and consultants will develop comprehensive PPMS procedures for systematically generating the data on inputs and outputs of the project components, and agree on the environmental and related socioeconomic indicators to be used to measure the project impacts. The WPMO and IA will refine the PPMS framework, confirm the achievable goals, firm up the monitoring and recording arrangements, and establish the systems and procedures no later than 6 months after the loan takes effect.

 The environmental costs are also shown in Table A2.2, which will be included in the project contracts during the constructions and the IA’s annual operation budgets during project operations. During the project implementation, the costs may be adjusted based on the actual requirements. Appendix 2 73

Tablet A2.2 Environmental Monitoring Program SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000) Sludge Treatment and Disposal – Construction Phase

Surface CODCr, NH3-N, SS, pH Wastewater discharge three times once a quarter WUDD HEST 3.6 Water point on the construction (10:00 -15:00) site per day, for 3 consecutive days

Air TSP At stock grounds, dusty three times once a quarter WUDD HEST 8 roads (10:00 -15:00) per day, for three consecutive days

Noise Leq Sensitive receivers 150m twice per day, twice a year WUDD HEST 1 away from the for two construction site and consecutive buildings within 50m away days from the piling site

Sludge Treatment and Disposal – Operation Phase

Air NH3, H2S, TSP Sampling port of exhaust four times per Quarterly WUDD HEST 10 funnel in Wuchangbei day, for five STP consecutive days

74 Appendix 2

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000)

Noise Leq 2-5m away from the once in twice a year WUDD HEST 1.5 Wuchangbei STP daytime and boundary once at night, for three consecutive days

Sludge pH, water content, TN, In the Wuchangbei STP — pH, fecal WUDD HEST 40 TP, K, organic content, coli ,water Cd, Hg, Cr, As, Ni, Zn, content - daily, Cu, B, mineral oil, Benzo[a]pyrene, Benzo(a)pyrene, PCDDs/PCDFs, PCDDs/PCDFs, AOX, AOX, PCBs – PCBs, fecal coli., death twice a year, rate of parasitic others – twice a helminth eggs week

New Zone Lakes / Channels Rehabilitation – Construction Phase Surface pH, DO, SS, oil, One sampling point at — Quarterly (more Water HEST 3

Water fecal coli., CODMn, 100m downstream from frequent Investment

TN, TP, NH3-N Dongfeng Water Gate monitoring in (Yangtze River) case of emergency events)

Appendix 2 75

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000) Air TSP One sampling point each eighteen three times in Water HEST 2 at northern section of continuous total, once each Investment and Tangshan Channel and hours per day, at initial, peak New Zone southern section of Zong for five and late stage company Channel consecutive of construction days

Noise Leq National Highway No.318 twenty four three times in Water HEST 1 continuous total, once each Investment and hours per day, at initial, peak New Zone for two and late stage company consecutive of construction days

Sediments pH, TN, TP, Cd, As, One sampling point each - Once for each Water HEST 7.5 Pb, Cu, Cr, Hg, Zn, Ni, at Longyang Lake, Moshui batch before its Investment and Lake, Nantaizi Lake, Zong disposal New Zone Channel, Liantong company Channel and Huoyan Channel

Aquatic Chl-a, Three sampling points - twice a year, for Hanyang district HEST 6 Organisms zoo-plankton,(including each at Longyang Lake, three Water Bureau Protozoan, rotifer, Moshui Lake and Nantaizi consecutive Cladocera and Lake; one sampling point years during Copepods) each at Zong Channel, construction

76 Appendix 2

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000) Liantong Channel and Huoyan Channel (twelve sampling points in total)

New Zone Lakes / Channels Rehabilitation – Operation Phase Surface Water temperature, One sampling point each — monthly Hanyang district HEST 6

Water(I) pH, DO, CODMn, BOD5, at Qinduankou Water Water Bureau

NH3-N, TP, Cu, Zn, Gate (50m upstream of fluoride, Se, As, Cd, Han river) and 100m Hg, Cr(6+), Pb, downstream from cyanide, volatile Dongfeng Water Gate phenol, oil, anionic (Yangtze River) surfactant, sulfide, fecal coli.

Surface Water temperature, Three sampling points — monthly (more Hanyang district HEST 10

Water(II) pH, CODMn, BOD5, DO, each at Longyang Lake, frequent Water Bureau

NH3-N, TN, TP, SS Moshui Lake and Nantaizi monitoring in Lake; one sampling point case of each at Zong Channel, emergency Liantong Channel and events) Huoyan Channel (twelve sampling points in total)

Soil pH Four sampling points at - Monthly Hanyang district HEST 0.5 Tang Mountain Water Bureau Appendix 2 77

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000)

Aquatic Chl-a, Three sampling points - twice a year Hanyang district HEST 6 Organisms zoo-plankton,(including each at Longyang Lake, Water Bureau Protozoan, rotifer, Moshui Lake and Nantaizi Cladocera and Lake; one sampling point Copepods) each at Zong Channel, Liantong Channel and Huoyan Channel (twelve sampling points in total) Pathogen Oncomelania Grit chamber near - Monthly WBAD HPBAD Qinduankou Water Gate

Sixin Pumping Station – Construction Phase

Surface CODCr, NH3-N,, SS, pH Wastewater discharge three times quarterly (more New Zone HEST 2 Water point on the construction (10:00 -15:00) frequent company site per day, for monitoring in three case of consecutive emergency days events)

Air TSP At stock grounds, dusty three times quarterly New Zone HEST 5 roads (10:00 -15:00) company per day, for three

78 Appendix 2

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000) consecutive days

Noise Leq Sensitive receivers 150m twice per day, twice a year New Zone HEST 1 away from the for two company construction site and consecutive buildings within 50m away days from the piling site

Sixin Pumping Station – Operation Phase

Surface CODCr, , SS, pH, TN, Wastewater discharge one day monthly (more Hanyang district HEST 2

Water TP, NH3-N point frequent Water Bureau monitoring in case of emergency events)

Noise Leq Near the plant boundary twice per day, once a year Hanyang district HEST 2 for two Water Bureau consecutive days

Yangchun Lake Secondary Urban Centre Lake / Channel Rehabilitation – Construction Phase Surface CODCr, NH3-N, SS, Three sampling points at one day quarterly (more Jianxing HEST 0.5 Water pH Yangchun Lake frequent company Appendix 2 79

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000) monitoring in case of emergency events)

Air TSP Random selection within eighteen three times in Jianxing HEST 1 the construction area continuous total, once each company hours per day, at initial, peak for seven and late stage consecutive of construction days

Noise Leq One sampling point each twenty four three times in Jianxing HEST 0.5 at Youyi Avenue and continuous total, once each company Wuqing Road hours per day, at initial, peak for two and late stage consecutive of construction days

Sediments pH, TP, TN, Zn, Cu, Two sampling points at one day Once for each Jianxing HEST 3 Pb, Hg, As, Cd, Cr, Ni, Yangchun Lak batch before its company disposal

Yangchun Lake Secondary Urban Centre Lake / Channel Rehabilitation – Operation Phase Surface Water temperature, Five sampling points at one day monthly (more Wuchang HEST 5

Water pH, DO, CODMn, Yangchun Lake and two frequent District Water

80 Appendix 2

SA Estimated Subject Parameter Location Time Frequency IA Cost (CNY10,000)

NH3-N, TP, Cu, Zn, sampling points at Heping monitoring in Bureau fluoride, Se, As, Cd, Channel, seven sampling case of Hg, Cr(6+), Pb, points in total emergency cyanide, volatile events) phenol, petroleum, anionic surfactant, sulfide, fecal coli.

Air TSP, PM10, NO2, SO2 eighteen Once a year Wuchang HEST 1 continuous District Water hours per day, Bureau for seven consecutive days

Noise Leq One sampling point each twenty four Once a year Wuchang HEST 0.5 at Youyi Avenue and continuous District Water Wuqing Road hours per day, Bureau for two consecutive days

Aquatic Chl-a, zoo-plankton, - Once a year Wuchang HEST 5 Organisms zoobenthos District Water Bureau Total 134.6

Appendix 2 81

AOX = absorbable organic halogens, As = Arsenic, Chl-a=chlorophyll-a, B=Boron, COD = chemical oxygen demand, Cd = cadmium, CODMn = permanganate index,

Cr = chromium, Cu=copper, DO = dissolved oxygen, fecal coli.=fecal coliform, H2S = hydrogen sulfide, HEST = Hubei Provincial Environmental Supervision Team,

Hg = mercury, HPBAD = Hubei Provincial Blood Anti-epidemic Department, K = potassium, IA = implementing agency, m = meter, NH3 = ammonia, NH3-N = ammonia nitrogen, Ni = nickel, NO2 = nitrogen dioxide, PAH = poly-aromatic hydrocarbon, Pb = lead, PCBs = polychlorinated biphenyls, PCDDs = polychlorinated dibenzo-p-dioxins, PCDFs = polychlorinated dibenzofurans, pH = factor of acidity, PM10 = particulate matter, SA = supervision agency, Se = Selenium, SO2 = sulfur dioxide, SS = suspended solids, TBT = Tributyl Tin, TN = total nitrogen, TP = total phosphorus, TSP = total suspended particle, WBAD = Wuhan Blood Anti-epidemic Department, WUDD = Wuhan Urban Drainage Development Co. Ltd, Zn = Zinc. Notes: (i) Detailed internal monitoring program during construction and operation will be developed at the beginning of project implantation by the PMO, IA/IU and EMC; and (ii) In addition to the regular compliance monitoring, other unannounced monitoring will be carried out to determine the compliance. Sources: EIA report for each individual component and WPMO.

82 Appendix 2

 Public Consultation

 Public Consultation during Project Preparation

 Various public consultations were conducted during the preparation of the feasibility study (FS) and EIA reports. As the preparation of FS reports, the respective municipal departments were consulted to assist in the selection of project site and process. During the preparation of EIA reports and the PPTA, the public consultations with different groups of stakeholders were carried out in accordance with MEP’s (formerly SEPA) Interim Provisions of Public Consultations for Environmental Impact Assessment (2006) and ADB’s Environmental Assessment Guidelines (2003). For details, refer to the main part of this summary environmental impact assessment (SEIA).

 Future Public Consultation Plan

 Future plans for the public involvement for the design, construction and operation phases were developed during the project preparation, which is shown in Table A2.3. These plans include the public consultation in (i) monitoring the impacts and mitigation measures during the construction and operation; (ii) evaluating the environmental and economic benefits and social impact; and (iii) interviewing the public after the project completion, which will be undertaken via site visits, workshops, investigation of the specific issues, interviews and public hearing.

 The public consultation plans are part of the project implementation and management plan. The IA will be responsible for organizing the public involvement during the project implementation. The contractors will be required to communicate and consult with the communities near project construction sites. An eye-catching public notice board will be set at each construction site to notify the public of the major construction information, also including its duration and contact name and telephone number to enable the public to express their concerns and complaints on the construction activities. Costs for the public participation activities during the project implementation are included in the Project’s funding, which are estimated at (i) CNY18,000 for each expert workshop; (ii) CNY6000 for each public investigation on a particular issue; (iii) CNY5,000 for each public workshop; and (iv) CNY8,000 for each press conference. Appendix 2 83

Table A2.3 Public Consultation Plan Organizer Approach Times Subject Participants A. Preparation / Design Phase Project information, existing environmental quality, major Residents, WPMO, local Interview, impacts and benefits, enterprises, and EIA Institute questionnaire, Twice mitigation measures, other stakeholders and PPTA public meeting comments and within the project Consultants recommendations of the area public

B. Construction Phase Public Adjustment of mitigation Residents near the IA, WPMO consultation At least once measures if necessary, project areas and site visit

As needed, Expert given the Comments and suggestions workshop or Experts from various IA, WPMO result of the on mitigation measures, press sectors, media public public opinions conference consultation

Adjustment of mitigation Representatives of Public At least once measures if necessary, IA, WPMO residents and social workshop a year construction impacts, sector comments and suggestions C. Operation Phase Effectiveness of mitigation IA, O&M Public Once in the measures, impacts of Residents adjacent to companies, consultation first two operation, comments and the project areas WPMO and site visits years recommendations

As needed, Expert IA, O&M given the Comments and suggestions workshop or Experts from various companies, result of the on operational impacts, press sectors, media WPMO public public opinions conference consultation EIA = environmental impact assessment, IA = implementing agency, O&M = operation and maintenance, PPTA = project preparatory technical assistance, WPMO = Wuhan project management office. Source: Environmental impact assessments, project preparatory technical assistance.

84 Appendix 2

 Responsibilities and Authorities for Implementation

 Environmental Responsibilities and Institutional Requirements

 The Wuhan Municipal Government is the EA and has established a project leading group by drawing representations from the Mayor’s Office, the municipal Development and Reform Commission, the municipal Financial Bureau, the municipal Construction and Planning Commission, the municipal Environmental Protection Bureau and the Land Resources Bureau. The WPMO will have the overall responsibility delegated by the EA for supervising the implementation of mitigation measures and reporting to ADB.

 During the project preparation and implementation, various organizations with different environmental management responsibilities have been involved. The WPMO, the IA, and contractors will each nominate the dedicated, trained and qualified environmental specialists to conduct the environmental management activities and ensure the effective implementation of EMP. Table A2.4 describes the environmental responsibilities of each organization during the different phases of the Project.

Table A2.4 Environmental Responsibilities Phase Responsible Agencies Environmental Responsibilities Preparation Local EIA Institute Preparation of EIA reports for components HEPB, WEPB Review and approval of EIA reports WPMO, ADB Review and comment of SEIA, including EMP Incorporation of environmental mitigation measures into Design Design institutes detailed engineering designs WPMO, IA Review and approval of the mitigation measures WPMO, LIEMC, IA, tendering Incorporation of EMP clauses into the bidding Tendering company, contractors documents and civil contracts Construction PMO, IA, LIEMC Advise on implementation of mitigation measures Implementation of mitigation measures and internal Contractors, CSCs monitoring WEPB, WEMC, WPMO, IA, Implementation of compliance / external monitoring,

LIEMC, HEST supervision of implementation of mitigation measures Advise on compliance monitoring and internal Operation LIEMC, WEPB monitoring requirements Implementation of mitigation measures and internal IA, O&M Companies monitoring WEMC Implementation of compliance monitoring HEPB, IA, LIEMC Supervision of implementation of mitigation measures EIA = environmental impact assessment, HEPB = Hubei Provincial Environmental Protection Bureau, WEPB = Wuhan Environmental Protection Bureau, WPMO = Wuhan project management office, ADB = Asian Development Bank, IA = implementing agency, LIEMC = loan implement environmental management consultant, CSC = construction Appendix 2 85 supervision company, WEMC = Wuhan Environmental Monitoring Centre, O&M = operation & maintenance. Source: Information supplementary environmental impact assessments from PMO.

 The IA will be responsible for the environmental management and implementation of the mitigation measures. It will ensure that the EMP is carried out and engage the design institutes and LIEMC to help with the environmental management at the stage of project preparation, design, construction and operation. In addition, the IA will be responsible for arranging the environmental monitoring reviews and responding to any adverse impact beyond those foreseen in the EIA reports. It will also attend to the requests from HEPB, WEPB and ADB regarding to the mitigation measures.

 Construction contractors will be responsible for implementing the relevant mitigation measures during construction under supervision of CSC, while the IA will be responsible implementing such measures during operation.

 Based on the EMP, the IA will set up its environmental management unit (EMU), normally with at least two employees The environmental management unit will take charge of (i) implementing the EMP and developing implementation details; (ii) supervising the implementation of mitigation measures during construction; (iii) implementing training programs for contractors; (iv) incorporating the environmental management, monitoring, and mitigation measures into the construction and operation management plans; (v) establishing and implementing the internal routine environmental monitoring; and (vi) reporting on the EMP performance to WPMO and other responsible agencies. The unit will be technically supported by LIEMCs and supervised by WEPB.

 HEPB and WEPB will ensure the compliance with the PRC and local environmental regulations via regular and random environmental compliance monitoring and inspection during construction and operation. WEMC will conduct the actual environmental compliance monitoring and inspection on behalf of the two authorities mentioned above.

 The local government will provide the IA with financial and management autonomy to operate the project facilities. The IA has relatively limited capacity for the environmental management, which will be strengthened by the relevant training of the Project, as summarized in Table A2.5.

 The LIEMC will advise the PMO, the IA and contractors on all aspects of environmental management and monitoring for the Project. The LIEMC will (i) review project environmental practices and procedures; (ii) guide the environmental standard setting and assist in implementation procedures; (iii) review the start-up of the Project’s facilities; (iv) advise on the mitigation measures during construction and operation based on the EMP; and (v) investigate and make recommendations on other environmental issues.

86 Appendix 2

 Institutional Strengthening and Training

 There is only one IA in the Project, i.e. Wuhan Urban Construction Fund Management Office (WFMO), which has several implementing units (IUs). One IU is Wuhan Urban Drainage Development Co., Ltd, which will be responsible for the O&M of Sludge Treatment and Disposal Component, and others are the Local District Water Bureau, which will be responsible for the O&M of two lake / channel rehabilitation components.

 The WPMO will designate an environmental officer to coordinate the environmental management. The IA will establish an EMU with a leader and an appropriate number of staff to coordinate the environmental issues associated with each contract package on behalf of the IA. Both the WPMO’s environmental officer and EMU will supervise the contractor’s environmental management and implementation of mitigation measures during construction, under the guidance of WEPB. WEPB and WPMO will oversee the implementation of environmental management and mitigation measures done by the IA during operation. Contractors will bear the cost of implementation of mitigation measures during construction, while the IA will be responsible for the relevant cost during operation.

 An assessment undertaken during PPTA shows that the WPMO/IA/IUs have adequate technical and institutional capacities for the project implementation. However, they lack the sufficient capacity in the environmental management and monitoring. For the proper implementation of EMP, it is necessary to build up and strengthen the relevant capacity of implementation and supervision agencies. Therefore, the EMP training (shown in Table A2.5) is needed, which will also be an element in the policy dialogue on the institutional component.

 The relevant staffs, including the environmental officer of WPMO, environmental management staff of the IA and IUs, and contractors etc., will be trained in the field of environmental management, monitoring and supervision, mitigation planning, emergency response, environmental policy making and other environmental management techniques. Funding for the training program will be included in the project budget and in the O&M budgets during operation.

 The institutional component of the Project will also involve significant training from the loan implementation consultant in operating and maintaining the completed facilities.

Table A2.5 Institutional Strengthening and Training Program Strengthenin Agency Strengthening Plan Timing g Activities Institutional organization, During project preparation and Capacity WPMO, IA/IUs development of responsibilities for implementation building each position Appendix 2 87

Monitoring WPMO, IA/IUs, Procurement of relevant monitoring During project preparation and Equipment Contractors instruments and equipment implementation

Budget Period Number Training Attendees Contents Times (CNY (days) of Person 10,000)  Environmental laws 4 2 60 8 Environmental and regulations; WPMO,IA/ protection laws,  Environmental policies IUs, regulations and and plans; contractors policies  Basic environmental management practice

 Based on the actual 2 1 50 6 case, adjustment and improvement of EMP; EMP  Environmental WPMO,IA/I implementation responsibilities during Us, and adjustment, construction and contractor and settlement operation; s disputes  Major environmental issues during construction and operation

 Introduction of 2 1 40 4 Environmental WPMO, relevant technologies, technologies and IA/IUs, type of pollution equipments contractors control equipments and their function

Advanced training 3 2 60 8 on sludge heat  Basic theory; drying process,  International river/lake experience and best WPMO, dredging, wetland management practice; IA/IUs management,  Experience on the biological similar projects in remediation of China lake/river

88 Appendix 2

Environmental WPMO,  Monitoring methods; 2 1 20 4 monitoring and IA/IUs,  Tips on preparing the reporting contractors monitoring report

 Introduction of 2 5 10 5 national standard monitoring methods;  Introduction of lab staff of monitoring Skills of sludge relevant instruments; quality analysis WWTPs  Operation method of monitoring instruments; and  Quality assurance and control of the lab

Total 35 EMP = environmental management plan, IA = implementing agency, IU = implementing unit, WPMO = Wuhan project management office. Note: The budget of training regarding to optimization of WWTPs’ operational performance in Wuhan will be under other funds. Source: project preparatory technical assistance.

 Reporting and Supervision

 Internal Monitoring Reports. During construction, results of the internal monitoring done by contractors and CSCs will be reflected in the weekly construction reports. The reports will summarize (i) environmental issues during construction; (ii) mitigation measures taken, if any; and (iii) consequences of the impacts on the environment and/or surrounding communities.

 The contractors will be trained to take immediate actions to remedy the unexpected adverse impacts or inefficient mitigation measures, as required by the EMP. The PMO and IA will respond to these reports to ensure that contractors have taken the appropriate and timely action. Additional measures may be undertaken, if necessary, to ensure that all issues raised by the reports are properly addressed.

 The results of the detailed internal environmental monitoring and mitigation actions during construction will be submitted on a monthly basis to the IA, quarterly to the PMO, and semiannually to HEPB and WEPB.

Appendix 2 89

 Compliance Monitoring Reports. WEMC authorized by HEPB and WEPB will be responsible for the environmental compliance monitoring and inspection according to the relevant PRC environmental regulations. The compliance monitoring reports will include (i) project background; (ii) construction activities; (iii) environmental conditions; (iv) sampling and measurement locations; (v) analytical results; (vi) interpretation and implications of the monitoring data; (vii) determination of the compliance status based on the applicable regulations and standards; and (viii) recommendations for the improvement. These reports will be submitted to WEPB and HEPB by WEMC, with a copy to WPMO.

 Project Completion Environmental Audit Reports. A project completion environmental audit report will be prepared on the completion of each component, based on the PRC regulation on Environmental Check-and-Acceptance of Project Completion (MEP, formerly SEPA, 2001) within three months of the completion of each subcomponent. The report will focus on the project compliance with environmental performance standards when it is put into operation. The report will be sent to the local environmental authorities for review and approval. In case noncompliance is found, the construction project will be asked to meet the requirements before the commencement of commercial operation.

 External Monitoring Reports. WPMO have the responsibility to monitor and assess the overall project activities under the project design and monitoring framework (PDMF), and will be accountable to ADB for ensuring the effective implementation of the EMP. WPMO, assisted by the LIEMC, will be responsible for the environmental supervision and monitoring, and reporting to ADB. The external monitoring reports will submitted to ADB and WPMO on a semiannual basis. The reports will emphasize (i) progress made in the EMP implementation; (ii) implementation of mitigation measures; (iii) environmental compliance; (iv) institutional strengthening and training; (v) public consultation and (vi) problems occurred and relevant corrective actions undertaken.

 The environmental reporting plan is demonstrated in Table A2.6.

Table A2.6 Environmental Reporting Plan Frequency of Purpose Type of Report From To Reporting A. Construction Phase Internal Internal monitoring report Contractors, IA Monthly Monitoring CSC Internal monitoring report WEMC WPMO, IA, Quarterly LIEMC

Compliance Compliance monitoring report WEMC HEPB, As per the PRC monitoring WEPB regulation

90 Appendix 2

Frequency of Purpose Type of Report From To Reporting

External External monitoring report LIEMC ADB, Semiannual monitoring WPMO, IA

B. Test Operation Phase Project Project completion WEMC HEPB, Once within three completion environmental audit report WEPB, months of project Environmental WPMO completion Audit

C. Operation Phase Internal Internal monitoring report IUs WPMO, IA Quarterly for the Monitoring first three years of operation

Compliance Compliance monitoring report WEMC HEPB, As per the PRC monitoring WEPB regulation

External External monitoring report LIEMC ADB, Semiannual for monitoring WPMO, IA the fist three years of operation

WEMC = Wuhan Environmental Monitoring Centre, WEMC = Wuhan Environmental Monitoring Centre, CSC = construction supervision company, WPMO = Wuhan project management office, LIEMC = loan implement environmental management consultant, HEPB = Hubei Provincial Environmental Protection Bureau, WEPB = Wuhan Environmental Protection Bureau, ADB = Asian Development Bank, IU = implementing unit. Source: PPTA environmental consultants based on the individual environmental impact assessment report.

 Work Plan

 Before the project construction, WPMO and the IA will define the detailed responsibilities and requirements for contractors, and provide the detailed cost estimate of mitigation measures and environmental monitoring in the construction contracts. Meanwhile, they will define the responsibilities of their environmental management offices and prepare their work schedules.

 Before the operation of project facilities, IA/IUs will develop detailed work plans for environmental management and monitoring during operation based on the EMP. These plans will be submitted to WEPB to help it to supervise the implementation.

Appendix 2 91

 Procurement Plan and Cost Estimates

 The IA/IUs will develop the detailed plans for procuring equipment, materials and civil works needed to implement the mitigation measures and monitoring plans. These plans will be incorporated into project contracts. Environmental considerations will be included in the procurement to ensure environmentally responsive procurement.

 The cost estimates for mitigation measures and monitoring plans are listed in Table A2.1 and A2.2. HEPB and WEPB will cover the compliance monitoring costs as part of their enforcement function. The internal monitoring costs will be borne by contractors during construction and by the IA/IUs or O&M companies during operation, if applicable. Before implementing the monitoring plan, the responsible agency will present a more detailed breakdown of the estimated budget. During project implementation, the budget will be adjusted based on the actual requirements.

 The contractors will bear the costs of all mitigation measures during construction, which will be included in the bidding documents and contracts. Meanwhile, the IA/IUs or O&M companies will bear the cost related to mitigation measures during operation. Costs related to environmental supervision during construction and operation will be borne by the IA.

 The costs of LIEMC and training will be borne by the Project as a whole. Training program budgets will be included in the construction and operation contracts. Moreover, the training budget will be included in the O&M budgets during the operation phase.

 Mechanisms for Feedback and Adjustment

 The effectiveness of mitigation measures and monitoring plans will be evaluated by a feedback reporting system. Adjustment to the EMP will be made, if necessary. WPMO will play a critical role in the feedback and adjustment mechanism, as shown in the Figure A.1 below.

Based on the inspection and monitoring reports, the local environmental authorities will decide whether (i) further mitigation measures are required as the correction action; or (ii) the environmental management practices need some improvement. During the inspection, in case (i) substantial deviation from the EMP is identified; (ii) any change is made to the Project; and (iii) any component is considered to have the possibility to cause substantial adverse environmental impacts or increase the number of affected people, WPMO will consult with the local environmental authorities and ADB immediately and conduct the additional environmental assessment and further public consultation, if necessary. The revised EMP will be submitted to the environmental authorities for approval, and then to ADB. The updated EMP will be passed to the contractor(s), and IA/IUs for implementation.

38 Appendix 2

Figure A.1. Mechanism for Feedback and Adjustment of Environmental Management Plan

ADB = Asian Development Bank, CSC = Construction Supervision Company; HEPB = Hubei Provincial Environmental Protection Bureau, IA = Implementing Agency, IU = Implementing Unit, LIEMC = Loan Implementation Environmental Management Consultant; WEMC = Wuhan Environmental Monitoring Centre, WPMO = Wuhan Project Management Office.