Initial Environmental Examination

July 2005

People’s Republic of China: Hunan Flood Management Sector Project (Loudi City Core Subproject)

Prepared by SOGREAH Consultants for the Hunan Provincial Project Management Office and the Asian Development Bank.

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

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.

PEOPLE REPUBLIC OF CHINA

ASIAN DEVELOPMENT BANK

HUNAN WATER RESOURCES

DEPARTMENT

HUNAN FLOOD MANAGEMENT PROJECT

TA 4324-PRC

LOUDI CITY

INITIAL ENVIRONMENTAL EXAMINATION (IEE)

JULY 2005 13401501.R4 (E3) ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E3): LOUDI CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

TABLE OF CONTENTS

1. INTRODUCTION 1 1.1. BACKGROUND CONTEXT AND REPORT OBJECTIVES 1 1.2. HUNAN FLOOD MANAGEMENT PROJECT - OVERVIEW 2 1.3. LOUDI URBAN FLOOD CONTROL CORE SUBPROJECT 3 1.3.1. OVERVIEW 3 1.3.2. SUBPROJECT PROPONENT 5 2. ENVIRONMENTAL ASSESSMENT REQUIREMENTS AND REGULATORY FRAMEWORK 7 2.1. PRC ENVIRONMENTAL ASSESSMENT REQUIREMENTS 7 2.1.1. KEY LAWS, GUIDELINES AND PROCEDURES 7 2.1.2. PROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER PRC REGULATIONS 8 2.2. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS 8 2.3. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS UNDER A SECTOR MODALITY 9 2.4. PROJECT AND SUBPROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER ADB REQUIREMENTS 9 2.4.1. ENVIRONMENTAL CATEGORIZATION 9 2.4.2. PROJECT REVIEW PROCESS 9 2.4.3. SUBPROJECT REVIEW PROCESS 10 3. DESCRIPTION OF THE LOUDI CORE SUBPROJECT 11 3.1. TYPE, RATIONALE AND PURPOSE TYPE, RATIONALE AND PURPOSE 11 3.2. SUBPROJECT OVERVIEW 11 3.3. LOCATION 12 3.4. CONSIDERATION OF ALTERNATIVES 16 3.5. DETAILED DESCRIPTION 16 3.5.1. DIKES 16 3.5.2. DRAINAGE GATES 18 3.5.3. PUMPING STATIONS 18 3.5.4. RIVER DREDGING AND REALIGNMENT 18 3.5.5. BORROW PITS AND SPOIL PILES 19 3.5.6. BUDGET 19 3.5.7. IMPLEMENTATION SCHEDULE 19 4. DESCRIPTION OF THE ENVIRONMENT 21 4.1. PHYSICAL RESOURCES 21 4.1.1. TOPOGRAPHY 21 4.1.2. GEOLOGY AND SEISMOLOGY 21 4.1.3. CLIMATE 21 4.1.4. SURFACE WATER 22 4.1.4.1. HYDROLOGY AND FLOODING 22 4.1.4.2. WATER QUALITY 23 4.1.5. AIR QUALITY 23

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4.2. ECOLOGICAL RESOURCES 23 4.2.1. VEGETATION 23 4.2.2. TERRESTRIAL AND AQUATIC WILDLIFE 24 4.2.3. FISHERIES 25 4.2.4. PROTECTED AREAS AND NATURE RESERVE 25 4.3. SOCIOECONOMIC CONDITIONS 25 4.3.1. DEMOGRAPHIC PROFILE 25 4.3.2. ECONOMIC PROFILE 26 4.3.3. POVERTY PROFILE 26 4.3.4. MINORITY PROFILE 27 4.3.5. ARCHAEOLOGY, CULTURAL AND RECREATIONAL PROFILE 27 5. SCREENING OF POTENTIAL IMPACTS AND MITIGATION 28 5.1. APPROACH TO ENVIRONMENTAL SCREENING 28 5.2. SITING 28 5.2.1. LAND ACQUISITION AND RESETTLEMENT 28 5.2.1.1. POTENTIAL IMPACT 28 5.2.1.2. RECOMMENDED MITIGATION MEASURES 40 5.2.1.3. RESIDUAL IMPACT 40 5.2.2. AGRICULTURE PRODUCTION 40 5.2.2.1. POTENTIAL IMPACT 40 5.2.2.2. RECOMMENDED MITIGATION MEASURES 40 5.2.2.3. RESIDUAL IMPACT 41 5.2.3. ECOLOGICAL RESOURCES 41 5.2.3.1. POTENTIAL IMPACT 41 5.2.3.2. RECOMMENDED MITIGATION MEASURES 41 5.2.3.3. RESIDUAL IMPACT 41 5.2.4. HISTORICAL AND CULTURAL VALUES 41 5.2.4.1. POTENTIAL IMPACT 41 5.2.4.2. RECOMMENDED MITIGATION MEASURES 41 5.2.4.3. RESIDUAL IMPACT 42 5.2.5. TRANSPORTATION 42 5.2.5.1. POTENTIAL IMPACT 42 5.2.5.2. RECOMMENDED MITIGATION MEASURES 42 5.2.5.3. RESIDUAL IMPACT 42 5.2.6. MINERAL RESOURCES 42 5.2.6.1. POTENTIAL IMPACT 42 5.2.7. PUBLIC FACILITIES 42 5.2.7.1. POTENTIAL IMPACT 42 5.2.7.2. RECOMMENDED MITIGATION MEASURES 43 5.2.7.3. RESIDUAL IMPACT 43 5.3. CONSTRUCTION 43 5.3.1. HYDROLOGY 43 5.3.1.1. POTENTIAL IMPACT 43 5.3.2. WATER QUALITY 43 5.3.2.1. POTENTIAL IMPACT 43 5.3.2.2. RECOMMENDED MITIGATION MEASURES 44 5.3.2.3. RESIDUAL IMPACT 46 5.3.3. SOLID WASTE 46 5.3.3.1. POTENTIAL IMPACT 46 5.3.3.2. RECOMMENDED MITIGATION MEASURES 46 5.3.3.3. RESIDUAL IMPACT 47 5.3.4. AIR QUALITY 47

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5.3.4.1. POTENTIAL IMPACT 47 5.3.4.2. RECOMMENDED MITIGATION MEASURES 47 5.3.4.3. RESIDUAL IMPACT 48 5.3.5. NOISE 48 5.3.5.1. POTENTIAL IMPACT 48 5.3.5.2. RECOMMENDED MITIGATION MEASURES 48 5.3.5.3. RESIDUAL IMPACT 48 5.3.6. FLORA 49 5.3.6.1. POTENTIAL IMPACT 49 5.3.6.2. RECOMMENDED MITIGATION MEASURES 49 5.3.6.3. RESIDUAL IMPACT 49 5.3.7. FAUNA 49 5.3.7.1. POTENTIAL IMPACT 49 5.3.7.2. RECOMMENDED MITIGATION MEASURES 50 5.3.7.3. RESIDUAL IMPACT 50 5.3.8. AQUATIC LIFE 50 5.3.8.1. POTENTIAL IMPACT 50 5.3.8.2. RECOMMENDED MITIGATION MEASURES 50 5.3.8.3. RESIDUAL IMPACT 50 5.3.9. PUBLIC SAFETY 50 5.3.9.1. POTENTIAL IMPACT 50 5.3.9.2. RECOMMENDED MITIGATION MEASURES 51 5.3.9.3. RESIDUAL IMPACT 51 5.4. OPERATION 51 5.4.1. HYDROLOGY 51 5.4.1.1. POTENTIAL IMPACT 51 5.4.2. WATER QUALITY 52 5.4.2.1. POTENTIAL IMPACT 52 5.4.3. FLORA AND FAUNA 52 5.4.3.1. POTENTIAL IMPACT 52 5.4.4. AIR QUALITY 52 5.4.4.1. POTENTIAL IMPACT 52 5.4.4.2. RECOMMENDED MITIGATION MEASURES 52 5.4.5. TRAFFIC 53 5.4.5.1. POTENTIAL IMPACT 53 5.4.6. PUBLIC SAFETY 53 5.4.6.1. POTENTIAL IMPACT 53 6. PUBLIC CONSULTATION 54 6.1. BENEFICIARY IDENTIFICATION 54 6.2. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ACTIVITIES 54 7 ENVIRONMENTAL MANAGEMENT PLAN 57 7.1 EMP DEVELOPMENT AND PURPOSE 57 7.2 ENVIRONMENTAL MITIGATIONS 57 7.3 ENVIRONMENTAL MONITORING 57 7.3.1 COMPLIANCE MONITORING 58 7.3.2 AMBIENT MONITORING 58 7.4 INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 58 7.5 ENVIRONMENTAL SPECIFICATIONS FOR CONTRACTOR(S) 59 7.6 CAPACITY BUILDING REQUIREMENTS 59 7.7 BUDGET FOR EMP IMPLEMENTATION 59

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8 FINDINGS AND RECOMMENDATIONS 62

9 CONCLUSION...... 64

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LIST OF TABLES

Table 1-1: Summary of the 36 Subproject Key Characteristics ...... 4 Table 3-1: Summary of the Loudi Subproject Key Characteristics ...... 15 Table 3-2: Dike Characteristics ...... 18 Table 3-3: Pumping Stations Characteristics ...... 18 Table 3-5: Cost Estimates for Loudi City Urban Flood Control Subproject ($ million) ...... 19 Table 3-4: Main Quantities ...... 20 Table 4-1: Climate Characteristics ...... 22 Table 4-2: Basic Parameters, Environmental Quality Standards for Surface Water (GB3838-2002), National Standards of the People's Republic of China...... 24 Table 4-3: Demographic Profile of Louxing District and Hunan Province...... 25 Table 4-4: Economic Profile of Louxing District and Hunan Province (2003) ...... 26 Table 4-5: Poverty Profile, Louxing District (2003)...... 27 Table 5-1: Summary Screening of Potential Impacts on Natural and Social Environment, Loudi City Subproject ...... 29 Table 6-1: Public Consultation and Participation ...... 55 Table 6-2: Positive Impacts Identified by Different Groups of Beneficiaries ...... 56 Table 7-1: EMP Budget, Loudi Subproject ...... 60

LIST OF FIGURES

Figure 1-1: Loudi Subproject Location ...... 6

Figure 3-1: Loudi Subproject Site Layout...... 13 Figure 3-2: Loudi Subproject Landuse...... 14 Figure 3-3: Typical Dike Cross-Section ...... 17

APPENDICES

Appendix I: Site Photographs Appendix II: Site Visits

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LIST OF ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank BOD Biochemical Oxygen Demand CCO Chief Compliance Officer CO Carbon Monoxide COD Chemical Oxygen demand DO Dissolved Oxygen EA Executing Agency EFI Environmental Field Inspector EIA Environmental Impact Assessment EMDP Ethnic Minority Development Plan EMP Environmental Management Plan EPB Environmental Protection Bureau ESD Environmental and Social Division ESIHP Environmental Science Institute of Hunan Province FSP Facilities Siting Plan FSR Feasibility Study Report GDP Gross Domestic Product GOC Government of China HEPB Hunan Environmental Protection Bureau HHPDI Hunan Hydro and Power Design Institute HPG Hunan Provincial Government HSP Health and Safety Plan IEE Initial Environmental Examination JBIC Japan Bank for International Cooperation LLG Local Leading Group LPMO Local Project Management Office Mu Area unit (mu) equivalent to 1/15 ha NDPC National Development Planning Committee NGO Non-Government Organization NO2 Nitrogen Dioxide PDRC Provincial Development and Reform Commission PFD Provincial Finance Department PIU Project Implementation Unit PLG Project Leading Group PMO Project Management Office (Subproject level) PPMO Provincial Project Management Office PRC People’s Republic of China PWRD Provincial Water Resources Department RP Resettlement Plan SEIA Subproject Environmental Impact Area SEPA State Environmental Protection Administration SIEE Summary Initial Environmental Examination SO2 Sulphur Dioxide SPIA Social/Poverty Impact Assessment SS Suspended Solids SSA Subproject Study Area TA Technical Assistance TN Total Nitrogen TP Total Phosphorous TSP Total Suspend Particulates

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CURRENCIES

CNY = RMB Chinese Yuan (Renminbi) USD United States Dollar Conversion rate: 1 USD = 8.27 CNY

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ADDENDUM:

This document was completed in April 2005, several months prior to loan fact finding (LFF - June 2005). During LFF it was agreed that the overall project loan would be capped at $200 million. In addition, further detail was requested on some environmental aspects. Therefore, this report should be read with the understanding that changes agreed at LFF stage have not been incorporated into this document.

The additional work to revise this and the other Project environmental reports will be completed by the PPTA environmental team under a separately supported ADB staff consultancy. Updated reports will be produced in August 2005 that will contain:

1. Updated costs in view of adjustments to the project with a capped ADB loan of $200 million for all participating subprojects;

2. Additional detail on proposed mitigation actions and responsibilities; and

3. A more detailed site specific environmental management plan (EMP), based on additional survey work to be undertaken by Hunan Hydro and Power Design Institute.

Revisions will be made to the consolidated IEE, SIEE, EMP, and to selected core subproject IEEs. These revisions will draw heavily on the earlier PPTA Core Subproject IEE reports and the overall Project consolidated reports, but will be strengthened by the inclusion of more substantive detail as called for at the loan fact finding. The presentation of additional survey data that was only recently made available and the completed overall project domestic EIA, now being finalized by ESI, will be major inputs into the revision process.

Ben Hallam

PPTA Team Leader, June 27, 2005.

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1. INTRODUCTION

1.1. BACKGROUND CONTEXT AND REPORT OBJECTIVES

T.A. No. 4324-PRC: Hunan Flood Management Project (the TA) is assisting the Hunan Provincial Government (HPG) in (i) reviewing, assessing and identifying the most cost effective flood protection measures for the four mountain rivers of Hunan Province; (ii) preparing a feasibility study for respective subprojects; and, (iii) formulating a project for improved flood management in the four mountain rivers for funding by the Asian Development Bank (ADB).

The objectives of the TA are:

- prepare a Feasibility Study Report, including an assessment of the financial, economic, social and environmental impacts of the Project in accordance with policies and guidelines of the ADB;

- formulate the Hunan Flood Management Project (the loan project, hereafter referred to as the Project) to reduce flood hazards and damages in the mountainous area of Hunan Province, including improving flood management within the context of integrated river basin management; and,

- prepare a final report that includes updated / strengthened subproject feasibility study reports for selected subproject locations, and a consolidated final report covering overall feasibility, environmental impact, resettlement plans, and financial and economic analyses.

Under the Structural Flood Control Component of the proposed Project 36 urban flood control subprojects have been identified by HPG. The Hunan Hydro and Power Design Institute (HHPDI) has developed initial feasibility studies for each subproject. As the proposed Project will be implemented under a sector type approach1, eight priority core subprojects will be developed in full to the ADB-standard feasibility level during the TA implementation. These are:

(i) Yongzhou City Urban Flood Control Subproject;

(ii) Wugang City Urban Flood Control Subproject;

(iii) Loudi City Urban Flood Control Subproject;

(iv) Leiyang City Urban Flood Control Subproject;

(v) Chenxi City Urban Flood Control Subproject;

(vi) Huaihua City Urban Flood Control Subproject;

(vii) Xinhua Urban Flood Control Subproject; and,

(viii) Sangzhi City Urban Flood Control Subproject.

1 Asian Development Bank Aide Memoire, November 2004

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The remaining subprojects will be developed to feasibility level during the Project implementation.

The selection of the core subprojects was based on size of investment, geographical representation of the watersheds in the province, severity of environmental and resettlement impact, severity and types of flooding, types of proposed flood protection measures, impact on indigenous peoples, and poverty impact.

In accordance with the environmental requirements of the ADB as detailed later in this report, an Initial Environmental Evaluation (IEE) is being prepared for each subproject. This report presents the IEE for the Loudi City Urban Flood Control Subproject (the Subproject).

The purpose of this IEE report with respect to the proposed Subproject is to:

(i) describe the PRC and ADB environmental assessment processes under which the overall Project and this subproject have been reviewed;

(ii) describe the proposed Subproject interventions;

(iii) describe the baseline environmental and socioeconomic setting of the Subproject study area;

(iv) undertake a screening to identify proposed Subproject interventions that may result in significant environmental impacts;

(v) predict and assess characteristics and magnitude of impacts for those interventions identified in the screening that may result in negative environmental impacts;

(vi) recommend appropriate mitigation measures to minimize negative potential impacts, and predict and assess residual impacts; and,

(vii) describe the public consultation process undertaken.

As noted in Section 2.4 below a separate consolidated IEE, a separate consolidated summary IEE and a separate consolidated Environmental Management Plan (EMP) have also been prepared for the overall Project.

1.2. HUNAN FLOOD MANAGEMENT PROJECT - OVERVIEW

The proposed Project will support the HPG to reduce flood damage in mountainous areas by improving flood mitigation measures for the most affected municipalities and counties.

The overall goal of the proposed Project is to: - reduce flooding and flood hazards in the mountainous area of Hunan Province by improving flood management within a context of integrated river basin management.

The purpose of the proposed Project is to: - strengthen, improve and bring to a consistent standard the flood management measures in four tributaries of Dongting Lake in Hunan Province.

The development objective of the proposed Project is:

(i) to improve urban flood control and to counteract natural calamities in the mountainous areas of Hunan Province;

(ii) to protect life and property and improve safety for the people; and,

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(iii) to ensure social stability and advancement through reliable economic development.

The Project will invest in flood management in the Xiang, Zi, Yuan and Li River Basins, collectively termed the ‘Mountain Rivers’, which deliver runoff from the mountainous areas of Hunan to Dongting Lake. These Mountain Rivers generate short duration localized floods, characterized by a steady rise and fall of water levels in the river sections as a flood wave passes down the river. These elevated flood levels generally persist for no more than two or three days, except in the lower reaches where the period may extend to 5 days. Despite the mountainous conditions, tending to low hills in the middle catchment, the rivers generally have a shallow gradient through the heavily populated areas, with substantive floodplains within the otherwise narrow valleys which characterize the river systems. Consequently, the typical pattern of settlement adjacent to the rivers is narrow elongated development areas, with older high density residential, commercial and industrial areas in the flat lowlands. This tends to have constricted the natural floodplain characteristics for the river, and these areas are now subjected to short term but increasingly frequent flooding. The characteristic behavior of these Mountain Rivers means that the settled communities suffer from more frequent and often more extensive flood impacts, which causes loss of life and severe disruption to the livelihoods of affected peoples. By virtue of their location and dependence on agriculture, many are the poorest of the poor.

The proposed Project contains thirty-six (36) subprojects located in eight municipalities (Zhuzhou, Xiangtan, Hengyang, Shaoyang, Yongzhou, Chenzhou, Huaihua and Loudi); Jishou City which is the capital of Xiangxi Autonomous Prefecture; five county-level cities; and twenty- two counties2. These cities and counties are all located in either the eastern, southern and western mountainous regions, or in the central region which generally consists of low hills.

The proposed Project also includes a non-structural component that will enhance non-structural flood management in Hunan, including providing training and technical assistance to strengthen data collections systems, flood forecasting, and flood emergency warning systems.

Table 1-1 summarizes the 36 subproject key features under the Structural Flood Control Component of the proposed Project.

1.3. LOUDI URBAN FLOOD CONTROL CORE SUBPROJECT

1.3.1. OVERVIEW

Loudi City is located in the center of Hunan on the middle reach of the Lianshui River. The Lianshui has a total length of 224 km, is a first level tributary of the Xiangjiang, and flows from the west to east through Loudi to the Shuifumiao reservoir, located a further 50 km downstream. The middle reach of the Lianshui is characterized by undulating hills with a relatively flat flood plain terrace on either side of the river. The Sunshui, 85 km long, is a tributary of the Lianshui and traverses through the more recently developed southern part of Loudi City before joining the Lianshui on the eastern edge of the city at Litouzui. The terrace lands adjacent to these rivers are prone to flooding, and though some protection works have been established in the past, they generally only provide protection against floods of less than a 1 in 5 year return period.

2 The terms “county” and “municipality” are sometimes used interchangeably with the term “city” in the initial Chinese feasibility studies and in other Chinese Project-related documents. It should be understood that all subprojects are focused on specific and defined urban areas for which the generic term “city” is appropriate, regardless of whether this is referring to a prefecture-level, municipal-level or county-level city.

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TABLE 1-1: SUMMARY OF THE 36 SUBPROJECT KEY CHARACTERISTICS

No Name City Type River Earth Floodwall Culverts Pumping Basin Dikes Dikes (No.) Stations (Km) (Km) (No.) 8 Core Subproject to start in Year 0 (2005) 1 Yongzhou M X 21.50 23.37 16 6 2 Wugang C Z 5.47 10.76 14 4 3 Loudi M X 30.91 5.89 19 2 4 Leiyang C X 11.29 1.05 5 0 5 Chengxi C Y 0.00 0.73 3 1 6 Huaihua M Y 13.39 9.64 10 4 7 Xinhua C Z 12.25 0.00 4 2 8 Sangzhi C L 0.00 7.29 7 2 8 Core Subprojects - Sub Totals 94.81 58.73 78 21 28 Subprojects to start in Year 1 (2006) 9 Hengyang M X 39.21 18.30 88 31 10 Chenzhou M X 23.30 23.80 39 0 11 Shaoyong M Z 1.60 7.40 9 8 12 Jishou M Y 0.00 22.40 27 0 13 Zhuzhou C X 8.66 0.00 18 7 14 Youxian C X 10.90 1.40 15 4 15 Anhua C Z 3.30 10.55 4 0 16 Hengyang C X 14.60 0.34 6 4 17 Longhui C Z 4.50 3.60 5 3 18 Jiangyong C X 4.43 2.61 4 0 19 Xintian C X 11.70 7.52 3 3 20 Ningyuan C X 4.80 8.30 4 0 21 Zhongfang C Y 5.62 0.50 3 2 22 Xupu C Y 5.71 2.57 5 2 23 Lianyuan C X 4.07 13.10 17 0 24 Shuangfeng C X 4.40 5.41 12 2 25 Cili C L 11.99 5.70 5 1 26 Zhuzhou M X 24.50 8.50 7 14 27 Xiangtan M X 12.90 0.00 5 2 28 Qiyang C X 9.70 5.40 10 3 29 Lilling C X 3.49 7.90 5 4 30 Shimen C L 12.95 0.00 7 2 31 Shaodong C Z 11.10 0.54 7 4 32 Jianghua C X 2.87 0.74 3 3 33 Xinhuang C Y 0.00 6.35 4 3 34 Lengshuijiang C Z 5.40 1.69 9 3 35 Fenghuang C Y 0.00 5.15 0 0 36 Baojing C Y 1.30 3.65 6 0 28 Non-Core Subproject Sub-Totals 243.00 173.42 327 105 36 Subproject Totals 337.80 232.16 405 126

Rivers (Subprojects) – Xiangjiang (18), Zijiang (7), Yuanjiang (8), and Lishui (3) City Type (Subprojects) – Municipal (9) or County (27)

Note: For flood management, all the cities depend on non-structural measures (data acquisition, flood forecasting, flood warning and flood response procedures), and therefore varying activities will be undertaken at each city to strengthen these non-structural activities, coordinated by the Provincial Water Resource Department.

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The overall objective of the Loudi City Subproject is to prevent any flood occurring in the protected zones for up to a 1 in 50 year return period event, and to also provide drainage (waterlogging) evacuation of a 1 in 10 year, 24 hour rainfall within 24 hours. A total of 36.8 km of dikes in 4 sections are to be constructed along both banks of the Lianshui and for a short distance (approximately 1 km) on both banks of the Qinfeng River (a tributary to the Lianshui, joining from the north at about the mid-point of the urban section of the Lianshui), and along the north side of the Sunshui (4.1 km). There will be a total of 19 gated drainage culverts and 2 pumping stations. A flood wall type dike (total 5.89 km) will be built along the western and central ends of the Lianshui where development is dense and/or there is restricted alignment space in order to minimize land acquisition and resettlement costs. All remaining dikes (30.91 km) will be earth embankment.

1.3.2. SUBPROJECT PROPONENT

The Hunan Provincial Government (HPG) will be the Executing Agency (EA) for the Project. A provincial level Project Management Office (PPMO) has been established in the Provincial Water Resources Department (PWRD), with representatives from the Provincial Development and Reform Commission (PDRC) and the Provincial Finance Department (PFD). The PPMO will be responsible for overall project preparation and administration. The PPMO is an experienced and adequately staffed project office that has successfully processed and implemented two World Bank financed water resources and flood management projects and a Japan Bank for International Cooperation (JBIC) financed urban flood control project in the Dongting Lake area. A Project Leading Group (PLG), headed by a Vice Governor of Hunan Province and comprised of senior officials from PWRD, PDRC and PFD, will guide the PPMO and oversee project preparation and implementation.

At each subproject (municipality and county) a Local Leading Group (LLG) and a Local Project Management Office (LPMO) have been established and are responsible for coordinating and administering the subproject in their jurisdiction. The LLG and LPMO have a similar structure and composition as that of the PLG and PPMO. Subproject implementation will be undertaken by the corresponding project implementation units (PIUs) which are the existing local flood management agencies.

The responsibility for implementing the non-structural component of the Project was being clarified at the time of report preparation.

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FIGURE 1-1: CORE AND NON-CORE SUBPROJECT LOCATIONS, HUNAN FLOOD MANAGEMENT PROJECT

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2. ENVIRONMENTAL ASSESSMENT REQUIREMENTS AND REGULATORY FRAMEWORK

2.1. PRC ENVIRONMENTAL ASSESSMENT REQUIREMENTS

2.1.1. KEY LAWS, GUIDELINES AND PROCEDURES

The Environmental Impact Assessment Law of the PRC was passed on October 28, 2002 and became effective on September 1, 20033. The EIA Law demands obligatory environmental assessment studies for all construction projects. Key elements of the law in relation to the proposed Project are as follows:

- EIA refers to the analysis, projection and evaluation of potential environmental impacts caused by the implementation of a plan or a construction project. The assessment must propose measures to prevent or mitigate harmful environmental impacts, and recommend methods to carry out project impact monitoring. - There are three levels of EIA reporting:

• Category A projects are considered to have the potential for moderate to significant environmental impact, and a comprehensive assessment is required. Category A projects include land utilization and construction; development and utilization of regions, watershed areas and sea areas; and development of industry, agriculture, animal husbandry, forestry, energy resources, water resources, traffic, city construction, tourism and natural resources. The developer must hold a public hearing or seek comments and suggestions from experts and the public before submitting the EIA report for approval. Government approval or disapproval must be issued within 60 days.

• Category B projects have more moderate environmental impacts, and the law requires completion of an environmental impact form.

• Category C projects have minimal environmental impact projects, and the law requires completion of an environmental impact registration form for which government approval or disapproval is issued within 15 days. - China's State Environmental Protection Administration (SEPA) is authorized to handle the review and approval of environmental impact reports for construction projects on nuclear facilities, confidential works, construction projects straddling across more than one provincial-level region, projects that require examination and approval by the State Council or other ministerial level administrations, and projects that have a total investment over CNY 200 million. Local governments are responsible for the approval of all other projects. - The environmental protection administration is required to inspect the actual environmental impact after the project goes into operation, and as relevant, report on causes and liabilities for severe environmental pollution or ecological destruction.

3 Replaced the existing Environmental Protection Law (1992).

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The National Development Planning Commission (NDPC) or its provincial counterpart will not approve a project until the EIA is approved. Provincial or local Environmental Protection Bureaus (EPBs) are responsible for ensuring implementation of whatever environmental monitoring and management measures are specified in EIAs approved at any level. Generally, the administrative aspects of China’s newer environmental regulations, such as approvals and permits issued subsequent to EIAs, are enforced more stringently than older regulations.

The Implementing Agency is generally required to report at various stages of construction and operation, including an Environmental Monitoring and Supervision Report which should be submitted to the Provincial EPB and the Provincial Planning Commission. If funding is provided by international sources these reports are consolidated semi-annually or at completion of key stages and forwarded to the lending institution (e.g., ADB).

The Environmental Impact Assessment Law is supported by several Technical Guidelines for EIA, which provide recommendations and guidance on methodologies. Relevant guidelines include: - Technical Guideline for EIA of Hydroelectric and Hydraulic Engineering (on trial) (SDJ302-88); - Technical Guideline for EIA / Atmosphere Impact Assessment (HJ/T2.2-93); - Technical Guideline for EIA / Surface Water Impact Assessment (HJ/T2.3-93); - Technical Guideline for EIA / Noise Impact Assessment (2.4-1995); - Technical Guideline for EIA / Ecological Environment and Natural Resources (HJ/T 19- 1997); - Technical Regulations on Water and Soil Conservation of Development and Construction Projects (SL204-98); and, - Technical Guidelines for Environmental Impact Assessment (on trial) (HJ/T130-2003).

2.1.2. PROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER PRC REGULATIONS

As required under the Environmental Impact Assessment Law an overall Hunan Flood Management Project EIA Report is being prepared by the Environmental Science Institute of Hunan Province (ESIHP) under contract to the Hunan Hydro and Power Design Institute (HHPDI). The EIA is expected to be submitted to SEPA in April 2005. It is understood by the consultant that the EIA report will recommend that the Project be classified as Category C. Category C approval is expected to be received from SEPA in May 2005. It is as yet unclear whether a Category C environmental registration form will be required in addition to the EIA report that is being prepared.

Under the Environmental Impact Assessment Law subproject level EIA reports are not required.

2.2. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS

For any project processed with the participation of an International Funding Agency, in addition to the fulfillment of national requirements the proponent must also satisfy the requirements of the funding organization. As the proposed Subproject is being developed for financing through a loan from the ADB, it must follow the ADB environmental assessment guidelines and requirements, as detailed in the following key references:

(i) Environmental Policy of the Asian Development Bank (2003);

(ii) Environmental Assessment Guidelines of the Asian Development Bank (2003); and,

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(iii) Environmental Guidelines for Selected Agriculture and Natural Resources Development Projects, Asian Development Bank (1991).

ADB projects are classified as category A (with significant potential environmental impacts); category B (with less significant potential environmental impacts); and category C (unlikely to have significant environmental impacts). A project’s environment assessment category is determined by the category of its most environmentally sensitive component, including both direct and indirect impacts.

For category A projects a full EIA is required. For category B projects an initial environmental examination (IEE) is required, and if the IEE determines that the project has significant environmental impacts a full EIA is then required. If a full EIA is not required for a category B project, and the IEE concludes that the project will not have any adverse environmental impacts, then the environmental assessment is deemed complete. For category B projects in which a full EIA is not required but the project is still considered to be environmentally sensitive, the IEE must include an Environmental Management Plan (EMP) with a budget; a summary initial environmental examination (SIEE) must be submitted to the ADB Board 120 days prior to the Board consideration; and the SIEE must be posted on the ADB’s website and be made available to locally affected groups and NGOs upon request. No environmental assessment is required for category C projects although their environmental implications nevertheless need to be reviewed.

2.3. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS UNDER A SECTOR MODALITY

Under a sector-like approach subproject activities are typically not developed to the feasibility stage during TA implementation. In these cases priority subprojects may be selected to act as models for the full development of the remaining subprojects during the loan project implementation stage.

2.4. PROJECT AND SUBPROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER ADB REQUIREMENTS

2.4.1. ENVIRONMENTAL CATEGORIZATION

The Hunan Flood Management Project has been classified as category B, and has been deemed “environmentally sensitive” by the ADB Chief Compliance Officer (CCO).

2.4.2. PROJECT REVIEW PROCESS

The Project-level environmental review process includes the preparation of a consolidated (project-wide) IEE, a consolidated SIEE, and a consolidated EMP. Each has been reviewed and approved by both the ADB and the PPMO. As the project has been deemed environmentally sensitive by the CCO the EMP includes a budget; the SIEE must be submitted to the Board 120 days prior to the Board consideration; and, the SIEE must be posted on the ADB’s website and be made available to locally affected groups and NGOs upon request.

Given that (i) the structural component is the major focus of the proposed Project, comprising over 90% of the estimated Project cost; (ii) the structural component is the only component that involves any physical works; and (iii) the non-structural component is limited to technical assistance and capacity building for data collections systems, flood forecasting, and flood

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emergency warning systems, no environmental analysis was required or undertaken for the non-structural component.

2.4.3. SUBPROJECT REVIEW PROCESS

As the Project is taking a sector-like approach eight priority core subprojects have been developed to feasibility level during the TA implementation (see Section 1.1, above), and an IEE has been prepared for each core subproject. In total the following reports have been prepared for each core subproject in order to advance them to the implementation stage:

- Feasibility Study Report (FSR);

- Resettlement Plan (RP);

- Initial Environmental Examination (IEE);

- Social/Poverty Impact Assessment (SPIA); and,

- Ethnic Minority Development Plan (EMDP) if required.

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3. DESCRIPTION OF THE LOUDI CORE SUBPROJECT

3.1. TYPE, RATIONALE AND PURPOSE TYPE, RATIONALE AND PURPOSE

The Loudi Subproject is a structural urban flood control project and will reduce impacts in flood prone areas of Loudi City.

Loudi is an industrial city that is experiencing rapid growth. Much of the early city development centered on the rail links, coal mining and steelworks in the north and northwest of the current city. The combination of rapid industrialization, immigration of rural peoples for employment and growth of the established population has resulted in the city expanding to the east and south into the area between the Lianshui and Sunshui Rivers. In 2000 the urban area of Loudi was 36 km2 with a population of 278,200. This is projected to grow to 46 km2 and 400,000 by 2010, and to 63 km2 and 500,000 by 2020.

Floods from the two rivers can be frequent but are relatively short in duration (maximum 3 days). As much as 17.2 km2 of the city area is at risk from flooding, with the worst areas inundated by up to 7 m during a 1 in 50 year flood, and up to 15.4 km2 inundated in a 1 in 20 year flood (depth up to 6.1 m). For the 1 in 50 year flood it is estimated that up to 159,000 people will be affected, and direct financial losses are estimated to be in the order of CNY 800 million. Given the importance of Loudi as an industrial center in Hunan there is a strong need to minimize these disruptions by strengthening the flood protection works.

The goal of the Loudi Subproject is to prevent any flood occurring in two protection zones for up to a 1 in 50 year return period event, and to provide drainage (waterlogging) evacuation in these zones of a 1 in 10 year, 24 hour rainfall within 24 hours. The protection zones are located within the two main areas of the city4:

- Chengbei Protection Zone, North City Area – located to the north of the Lianshui, and divided in two by the Qinfeng River;

- Chengzhong Protection Zone, Central City Area – to the south of the Lianshui, and to the north of the Sunshui, consisting of two distinctly separate areas grouped together.

In order to achieve this protection the Subproject will construct a combination of dikes and drainage facilities in both the Chengbei and Chengzhong protection zones. With the Subproject in place the commerce and livelihood of the affected inhabitants will be more secure, and direct personal and broader city economic loss and physical damage will be reduced.

3.2. SUBPROJECT OVERVIEW

The proposed works will involve the development of 36.797 km of new dike to enclose the protection zones and 19 gated culverts at strategic locations to release stormwater runoff which will otherwise be trapped behind the dikes. The main works consist of:

4 The Chengnan Protection Zone in the South City Area was formerly included, but as some of the works have already commenced construction it has been agreed that this will be completed under a separate Loudi City development program.

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(i) Construction of 36.797 km of new dikes along both sides of the Lianshui and the left bank of the Sunshui Rivers to establish the Chengbei and Chengzhong protection zones.

(ii) Construction of 19 drainage culverts with a total of 23 sluice gates of varying size, distributed as follows: 5 for the Chengbei area west, 5 for Chengbei area east, 5 in the Lianshui dike on the north of the Chengzhong protection area, and 4 in the south Chengzhong area on the north side (left bank) of the Sunshui.

(iii) Construction of 2 pumping stations (Lianshui, Chengbei Protection Zone) with 5 pumps and total of 1,385 kw installed power;

(iv) Construction of 36.797 km of concrete precast block slope revetment;

(v) Placement of total 969,160 m2 of grass sod revetment on the dikes;

(vi) Dredging and disposal of spoil, estimated at 307,900 m3;

(vii) Surfacing of mudstone roads along the dikes up to 6 m wide, for a total road area of 184,000 m2; and,

(viii) Non-structural flood monitoring, forecasting, management, warning and emergency response measures.

As noted above the dikes are designed for a 1 in 50 year return period flood, while the drainage works are designed for a 1 in 10 year return period/24 hour storm to be evacuated within 24 hours.

In addition to these structural approaches, and in keeping with the National Flood Control Commanding System for flood data acquisition, forecasting and management, Loudi will upgrade the hydrological, meteorological and hydraulic measurement systems within its area of responsibility as part of the progressive improvement of the overall flood monitoring, forecasting and management system of the Xiangjiang River basin.

Table 3-1 provides a summary of the Subproject characteristics. Figure 3-1 presents an overview of the site layout, while Figure 3-2 presents the Loudi area landuse.

3.3. LOCATION

Hunan is situated between 109° to 114° longitude east and 20° to 30° latitude north, in south central China. Loudi Municipality is located in the center of Hunan Province and is situated between longitude E 111° 53’ to E 112° 07’ and latitude N 27° 35’ to N 27° 58’. It is bordered by Xiangxiang City to the east, Shuangfen County to the south, Lianyuan City to the west, and Ningxiang County to the north.

Within the greater Loudi Municipality the City of Loudi has an area of 36 km2 and a population of 278,200 (year 2000), the majority of which is urban. By the year 2010 Loudi is predicted to grow to 42 km2 and 400,000, and by 2020 it is expected to reach 63 km2 and 500,000. Figure 3-2 shows the Subproject layout in relation to landuse.

SOGREAH - July 2005 PAGE 12 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E3): LOUDI CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

FIGURE 3-1: LOUDI SUBPROJECT SITE LAYOUT

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FIGURE 3-2: LOUDI SUBPROJECT LANDUSE

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The overall Subproject Study Area (SSA) is defined as the flood protection zone, which has an area of approximately 17.2 km2. For the purposes of this environmental evaluation the Subproject Environmental Impact Area (SEIA) is defined as including: - a zone approximately 100 m wide measured from the average perpendicular trend of both banks of the Lianshui river, commencing 200 meters upstream of the start of dike construction and ending 200 meter downstream of terminus of dike construction; - a zone approximately 100 m wide measured from the average perpendicular trend of both banks of the Qinfeng River (a tributary to Lianshui, joining from the north at about the mid-point of the section of Lianshui), commencing 200 meters of the start of dike construction and terminating at the Qinfeng outlet; and, - a zone approximately 100 m wide measured from the average perpendicular trend of the left bank of the Sunshui River, commencing 200 meters upstream of the start of dike construction and ending 200 meter downstream of terminus of dike construction.

The above zones will encompass the direct impact zones from most of the Subproject activities, including the creation or upgrading of dikes, dredging, and the construction of drainage. In addition, the SEIA is also defined as including: - the area within a 100 m radius of the edge of the borrow pits; - the area within a 100 m radius of the edge of the sites for spoil disposal; and - the areas within a 100 m radius of the edge of the sites where displaced persons will be resettled.

TABLE 3-1: SUMMARY OF THE LOUDI SUBPROJECT KEY CHARACTERISTICS

Total Length of Dike km 36.80 New Earth Dike km 30.91 New Flood Wall km 5.89 New Pump Stations Stns / No. / kw 2 / 5 / 1,385 New Sluice Gated Culverts No. / Gates 19 / 23 Dike Slope Concrete Revetment km 36.80 Dike Slope Grass Revetment km 36.80 Hardened Dike Crest Surfacing km 36.80 Civil Works Structures Rip Rap Bank Protection km 16.68 Earth and/or Rock Excavation m3 x 103 945.11 Dredging m3 x 103 307.90 Earth and/or Rock Fill m3 x 103 3,803.61 Sand and Gravel Bedding m3 x 103 84.45 Grouted Rubble m3 x 103 178.60 Plain and Reinforced Concrete m3 x 103 13.50 Reinforcing Steel Bar t 1,057.50 Metalwork and Hoists t 260.35 Concrete Block Revetment m3 x 103 52.29 Construction Quantities Grass Slope Protection m2 x 103 969.16 Dike/Road Sealing m2 x 103 184.00 mu 1,590.00 Land Acquisition ha 106.00 House Demolition m2 x 103 30.72

Social / Other Building Demolition 20.49

Resettlement Population Resettled People 488

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3.4. CONSIDERATION OF ALTERNATIVES

When considering the flood protection needs for Loudi there was limited scope for significant alternative measures due to the natural topography and existing city development. The most immediate need is to limit the opportunity for flood water from the Lianshui and Sunshui Rivers entering the low lying city areas, and it was assessed that using dikes with gravity outlets for landside stormwater drainage was the most immediately effective option. The choice of alternatives therefore came down to rationalizing the alignment and type of dikes to be adopted, and to minimizing dike length, land acquisition, resettlement and related costs. After a review of options it was decided to:

- Build earth dikes or floodwalls along both banks of the Lianshui and Sunshui rivers where flooding was a regular problem, balancing the location and overall length of these dikes against the costs and impacts of land acquisition, resettlement and material quantities needed to provide the necessary safe protection works;

- Position and size culvert structures to provide effective drainage relief to the more severely affected areas, especially where stormwater drainage would accumulate behind the dikes, whilst minimizing overall structure size and requirements; and

- Ensure the provided works would totally enclose and secure the protected areas and securely provide the expected design level protection for the people and the economic prosperity of the city.

3.5. DETAILED DESCRIPTION

3.5.1. DIKES

It is proposed that four dike segments be built – 2 on the left bank of Lianshui to protect Chengbei (10.697 km), 1 on the right bank of Lianshui to protect the northern part of Chengzhong area (22.000 km), and 1 on the left bank of Sunshui to protect the south part of Chengzhong area (4.100 km).

Dikes on Lianshui left bank in the Northern City Area - 1.917 km of new cement flood wall from No. 1 Liangang Bridge to Xiangchong Road; - 4.609 km of new earth dike from Xiangchong Road to Meiziwan; - 0.774 km of new cement flood wall from Meiziwan to Yuanjiawan; - 12.000 km of new earth dike from Yuanjiawan to Hejia Bridge (including short spurs along the Qinfeng River on both banks to Shatian).

Dikes on Lianshui right bank in Northern City Area - 3.2 km of new cement flood wall from No.2. Liangang Bridge to Qinlongtan gate; - 10.20 km of new earth dike from Qinglongtan gate to Litouzui (Sunshui).

Dikes on Sunshui left bank in Central City Area - 4.100 km of new earth dike from Shibu Bridge to Taoziwan Bridge.

The dikes will primarily be earth embankment (30.906 km) with three sections of cement flood wall (5.891 km) in the more densely developed and older areas of the city. The earth dikes will be faced with a concrete block layer over a sand/gravel bed at the lower level on the river side, and some of the slopes will be grassed to stabilize the upper levels.

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FIGURE 3-3: TYPICAL DIKE CROSS-SECTION

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TABLE 3-2: DIKE CHARACTERISTICS

Protection Height Dike Section Chainage Length (km) River Zone (m) Liangang Bridge - North 0+000 - 10.7 Lianshui Gaocheao 10+700 Chengbei North Shatian - Hejia Bridge 10+700 - 19.3 Lianshui 19+300 Middle 0+000 - 4.0 - 7.0m Xinwu – Sunshui Mouth 13.4 Lianshui 13+400 Chengzhong Taoziwan Bridge - Shibu North 0+000 - 4.1 Sunshui Bridge 4+100 Total 36.8

3.5.2. DRAINAGE GATES

A total of 19 gated culverts will be installed in the dikes to release stormwater runoff that would otherwise be trapped (5 for Chengbei area west, 5 for Chengbei area east, 5 in the Lianshui dike on the north of the Chengzhong protection area, and 4 in the south Chengzhong area on the north side (left bank) of the Sunshui).

3.5.3. PUMPING STATIONS

Two pumping station will be constructed, one at Erjiawan and the other at Fujiawan.

TABLE 3-3: PUMPING STATIONS CHARACTERISTICS

Designed Name of Catchment Drainage Designed Outer Installed Inner Water Lift Head Pumping Chainage Area Discharge Water Level Capacity Level (m) Station (km2) (m3/s) (m) (kw) (m) Erjiawan North 2+550 3.00 4.90 93.50 100.12 2.45 2×220 North Fujiawan 5.00 8.20 91.10 98.87 3.48 3 315 12+600 ×

3.5.4. RIVER DREDGING AND REALIGNMENT

River dredging will be undertaken to remove sediments and other materials that have been deposited into the river channel and are restricting flow. In addition, in accordance with the Water Law, the River Channel Management Regulation and the Flood Control Management Regulation, illegal buildings and structures that inhibit flow will also be removed. These works include:

- Dredging of a total of 308,000 m3 of bottom sediments, sand shoals, collapsed bank materials, and domestic and other solid wastes and detritus.

- Demolition of 2,280 m2 of in 9 locations, including 1,800 m2 around Loudi Bridge.

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3.5.5. BORROW PITS AND SPOIL PILES

A total of 143,608 m3 of sand, 201,367 m3 of gravel, and 272,286 m3 of block stone will be used in the Subproject. Sand and gravel is used in concrete, and block stone is used for the stone retaining wall, foundation construction and riprap bank protection.

Sand and gravel will be purchased from existing suppliers who mine sand and gravel bars near the dikes. Stone will be sourced from existing quarries, one located several km east of the Sunshui River portion of the Subproject area, another with 10-15 km of the Lianshui River area, and a third, the Kuzhushan and Xiaoshizishan rock quarry area, located 5 km north of the Chengbei protection zone.

Soil and clay will be sourced from a total of 7 existing borrow pits along the Lianshui River (Meiziwan, Mujiashan, Zhujiachong, Maojiatang, Qingtan, Litouzui, Qingyuantang),and 4 existing borrow pits along the Sunshui River (Sanshanli, Wangjiawan, Dongchong, Sanzaoyuan).

Spoil will be deposited in a new 14.36 ha area to be acquired in Chengbei in the Northern City Area.

Main building material quantities required for the Subproject construction are summarized in Table 3-4.

3.5.6. BUDGET

The total cost of the Loudi City Urban Flood Control Subproject is estimated at $44.93 million (equivalent to CNY 372.03 million), comprising $13.99 million in foreign exchange (31.1 percent) and $30.94 million (CNY 256.16 million equivalent) in local currency costs, including local taxes of $1.96 million equivalent. Physical and price contingencies amount to $4.08 million and financial charges during implementation – comprising interest during implementation, front-end fees, and commitment charges – are estimated at $2.87 million. Subproject costs are summarized in Table 3-5 below.

TABLE 3-5: COST ESTIMATES FOR LOUDI CITY URBAN FLOOD CONTROL SUBPROJECT ($ MILLION) Foreign Local Total 1. Flood Control 9.56 26.56 36.12 2. Flood Management 0.34 0.03 0.37 3. Local Project Management 0.12 1.37 1.49 Total BASELINE COSTS 10.02 27.96 37.98 Physical Contingencies 1. 2.7 3.7 Price Contingencies 0.1 0.27 0.0.37 Total PROJECT COSTS 11.12 30.94 42.06 Financial Charges During Implementation 2.87 - 2.87 Total Costs to be Financed 13.99 30.94 44.93

3.5.7. IMPLEMENTATION SCHEDULE

It is anticipated that the works will be implemented over a 34 month period, starting in August of Year 0 (2005). The proposed sequence is to do the dike works for Chengbei from 2005 to 2007, and Chengzhong from 2005 to 2008. Construction of the various structures will be spread over the three years, running in parallel with the respective dike construction, but may require longer for completion than most of the related dike works. Project Management training and capacity building will be required in the initial stages of loan effectiveness to ensure the project can proceed smoothly within the allocated period. The non-structural measures will include the

SOGREAH - July 2005 PAGE 19 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E3): LOUDI CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE) provision of equipment to enhance the operation of the existing hydrological stations and improve the overall flood monitoring and forecasting system.

TABLE 3-4: MAIN QUANTITIES

No. Works Unit Quantity 1 Dike 1.1 Earth & Stone Excavation m3 399,787 1.2 Earth & Stone Backfilling m3 3,554,018 1.3 Grouted Rubble m3 126,056 1.4 Mudstone Road m2 184,000 1.5 Sod Revetment m2 969,158 2 Bank Protection 2.1 Earth & Stone Excavation m3 431,482 2.2 Grouted Rubble m3 41,095 2.3 Concrete Block Revetment m3 52,292 2.4 Sand & Pebble Layer m3 80,502 2.5 Riprap m3 182,013 3 River Dredging 3.1 Earth Excavation m3 104,800 3.2 Stone Excavation m3 28,500 3.3 Sand & Pebble Excavation m3 66,400 3.4 Dredging m3 108,200 4 Culvert Gates 4.1 Civil Works m3 4.1.1 Earth Excavation m3 97,336 4.1.2 Earth Backfilling m3 59,728 4.1.3 C20 Concrete m3 9,848 4.1.4 C10 Concrete Layer m3 954 4.1.5 Reinforced Steel t 886.300 4.1.6 Grouted Rubble m3 9,498 4.1.7 Sand & Pebble Layer m3 3,562 4.1.8 Rubber Waterstop m 3,970 4.2 Metal Structure 4.2.1 Weight of Gates t 141.950 4.2.2 Weight of Hoisting Equipment t 100.700 5 Pumping Station 5.1 Earth Excavation m3 16,500 5.2 Earth Backfilling m3 7,850 5.3 Grouted Rubble m3 1,380 5.4 Concrete & Reinforced Concrete m3 2,695 5.5 Reinforced steel t 171.200 5.6 Steel tube t 17.700 5.7 Sand & Pebble Layer m3 390 5.8 Masonry Envelope m3 575 5.9 Rubber Waterstop m 97

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4. DESCRIPTION OF THE ENVIRONMENT

4.1. PHYSICAL RESOURCES

4.1.1. TOPOGRAPHY

Hunan Province is enclosed by mountains and hills to the east, south and west, and drains northwards to the Yangtze River. Mountains and hills occupy approximately 75% of the province, and the remaining low lying area (Dongting Lakes) is part of the Yangtze River floodplain. The majority of Hunan Province is formed by the mountainous natural catchments of the four major tributary rivers which flow into the Yangtze River. The center and northern parts of the province are generally low, forming a U-shaped basin with the Dongting Lake at its center.

The middle reach of the Lianshui River is characterized by undulating hills, with relatively flat flood plain terraces on either side of the river. It is a transition zone between the more mountainous NanLing area and the Dongting Lakes floodplain. The Lianshui and Sunshui meander between the hills and have limited grade I and II floodplain terraces alongside the rivers.

4.1.2. GEOLOGY AND SEISMOLOGY

A geological survey was undertaken by the HHPDI and the detailed results are presented in the Loudi Subproject Feasibility Study Report. In general strata in the area includes quaternary sandy loam and sandy shale, and Permian sandy shale and limestone. There are no serious geological constraints for the Subproject construction.

According to The Seismic Zoning Map of China with Earthquake Parameters (1992) the seismic intensity in the Subproject study area is classified as below VI degrees, indicating a suitable degree of seismic stability.

4.1.3. CLIMATE

Loudi is located in a wet subtropical region, and the climate is predominantly hot and humid in the summer and cold and dry in the winter. In winter it is controlled by the Siberian cold air mass, while in the summer the area is influenced by hot and wet low latitude sea air masses, leading to high temperatures and humidity. In July and August wet weather occurs due to the influence of strong tropical winds which results in localized heavy storms. Table 4-1 presents a summary of climate data based on measurements taken at the Loudi weather station.

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TABLE 4-1: CLIMATE CHARACTERISTICS

Parameters Unit Value Average annual temperature 0C 17.3 Highest temperature 0C 39.3 Lowest temperature 0C －7.4 Average annual sunshine hours hr 1,631 Average annual precipitation mm 1,311 Average annual evaporation mm 1,500 Average annual humidity % 77 Dominant yearly wind direction SSE Maximum wind speed m/s 1.7 Average annual wind speed during flooding time m/s 10.8

4.1.4. SURFACE WATER

4.1.4.1. HYDROLOGY AND FLOODING

Loudi City is located on the middle reach of the Lianshui River, a first order tributary of the Xiangjiang River. The Lianshui enters Loudi from Shijing Village, west of the city, and meanders easterly though the city before flowing to the Xikou Reservoir. The Sunshui River, a second order tributary of the Xianjiang, enters Loudi from Shibu Village (Wanbao Town) in the south of the city and flows northeast until it enters the Lianshui River on the eastern edge of Loudi City.

The Lianshui has a catchment of 1,458 km2 to the Loudi hydrological station, located about 1 km upstream of the Liangang Bridge. The discharge in the Lianshui through Loudi is unregulated and is estimated as 2,760 m3/s at a water level of 103.46 m for a 1 in 50 year flow. The Sunshui has a catchment of 806 km2 to the Shian hydrological station, located about 2.8 km downstream of Shibu bridge. The discharge in the Sunshui through new southern Loudi is partly regulated by Baima reservoir, which controls a catchment area of 205 km2. This reservoir is primarily for water supply (irrigation) and power generation but also has some modest impact on flood flows from 25% of the Sunshui catchment. The estimated 1 in 50 year discharge for Sunshui at Shain hydrological station is 1,510 m3/s at a water level of 102.53 m.

The Sunshui flows into the Lianshui at Litouzui which is just within the eastern part of Loudi, and is the point where the Lianshui dikes will terminate. This area is several km upstream of the headwaters of the Shuifumiao reservoir. There is some partial but limited backwater impact from Shuifumiao in these rivers under extreme conditions, but to date the reservoir level has never been sufficiently high over its 40 year operational life to cause any extreme backwater levels. The backwater impact for the 1 in 100 year (1%) flood is projected to influence levels in Lianshui by a few centimeters back to Tianwansi, which is approximately halfway through the section of Lianshui to be protected by dikes (near Meizwan gate). Therefore, the design levels for Lianshui downstream of Tianwansi are based on the backwater levels for Shuifumiao reservoir on a 1 in 50 year event. Upstream of Tianwansi, the natural hydraulic characteristic levels are adopted for the 1 in 50 year discharge. The Sunshui section of river where dikes are to be built is not affected by the Shuifumiao backwater levels, so the natural hydraulic characteristics of the river are adopted for the 1 in 50 year discharge.

The largest recent flood event at Loudi was in 1966, when the Loudi hydrological station observed a discharge of 1,870 m3/s. The flood lasted 2 to 3 days, with a fast rise and slower decline. Other major flood events have been recorded in 1926, 1935, 1944, 1949 and 1954.

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4.1.4.2. WATER QUALITY

The Loudi water supply intake and treatment plant is located on the middle reaches of the Sunshui River in the Chengzhong protection area (chainage 3+500). The reach 3 km upstream from the intake is designated as a Class I water source protection zone, while the reach 6 km downstream from the intake is designated as a Class II water source protection zone. Water quality in Class I water source protection zones is evaluated against Class II water standards specified in the Quality Standards for Surface Water Environment (GB3838-2002) (see Table 4- 2). Water quality in Class II water source protection zones is evaluated against Class III water standards. There is no municipal water withdrawal from the Lianshui River, and there are no reaches of the river within the SEIA designated as a water source protection zone.

Loudi is an industrial area and the both the Lianshui and Sunshui are heavily polluted, with the lowest water quality occurring during the dry season. The upstream urban area of the Lianshui River receives discharges from eight large industrial plants including the Lianyuan wine factory, an iron factory, a paper mill and the Lianyuan Iron and Steel Works. Combined this industrial area produces more than 6 million m3 of wastewater per year, which is reported to be 95% of the total wastewater load produced in the city. According to water quality monitoring data in recent years the water quality of Lianshui River cannot meet the Class III levels specified in Quality Standards for Surface Water Environment (GB3838-2002). Parameters where the standard is exceeded include COD, oil, volatile phenol, lead, arsenic, and Cr6.

The water quality of the Sunshui is also poor, but not as bad as the Lianshui. The key source of industrial wastewater is the Lianyuan Nitrogen Fertilizer Factory. Monitoring at the Shibu station upstream of the Loudi water supply intake shows that the water quality can reach the Class II standard specified in Quality Standards for Surface Water Environment (GB3838-2002) when the factory is not discharging wastewater. Otherwise, the water quality can only meet the Class

III standard, and some parameters such as NH4—N and faecal coliform still exceed the standard.

4.1.5. AIR QUALITY

The airshed encompassing the SSA is zoned as Class II in the PRC Regional Ambient Air Quality Function Zoning (HJ14-1996) and air quality is therefore evaluated against the Class II standards specified in Quality Standards for Environmental Atmosphere (GB3095-1996). The Loudi environmental monitoring station monitors air quality at three stations: EPB building, the municipal building and the Second Middle School. Monitoring of SO2, NO2, and TSP is undertaken once a month for a 5 day period. According to the results the air quality in residential areas and commercial district meets the Class II standards specified in the Atmosphere Standard of Environmental Quality (GB3095-1996), while the air quality in the industrial areas meets the Class III standard.

4.2. ECOLOGICAL RESOURCES

4.2.1. VEGETATION

The Loudi City area is part of the subtropical evergreen/broad-leaf forest zone. In the higher elevation hills and mountains there are fairly extensive tracts of fir, bamboo and pine forest, while lower elevations tend to be denuded and give way to barren lands or degraded tracts of mixed shrubs and grasses.

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TABLE 4-2: BASIC PARAMETERS, ENVIRONMENTAL QUALITY STANDARDS FOR SURFACE WATER (GB3838-2002), NATIONAL STANDARDS OF THE PEOPLE'S REPUBLIC OF CHINA

No. Parameters (mg/L) Water Quality Class I II III IV V 1 Temperature(°C) The maximum average weekly water temperature variations caused by human activities should be ≤1 increase, and ≤2 decrease.

2 PH 6-9 3 Dissolved Oxygen ≥ 90% (or 75) 6 5 3 2 4 Permanganate Index ≤ 2 4 6 10 15

5 CODM ≤ 15 15 20 30 40

6 BOD5 ≤ 3 3 4 6 10

7 NH4—N ≤ 015 0 5 10 15 20 8 Total P ≤ 002 01 02 03 04 9 Total N ≤ 02 05 10 15 20 10 Cu ≤ 001 10 10 10 10 11 Zn ≤ 005 10 10 20 20 - 12 F ≤ 10 10 10 15 15 13 Se ≤ 001 001 001 0 02 002 14 As ≤ 005 005 005 01 01 15 Hg ≤ 0 00005 0 00005 0 0001 0 001 0 001 16 Cd ≤ 0 001 0 005 0 005 0 005 001 17 Pb ≤ 001 001 005 005 01 6+ 18 Cr ≤ 001 005 005 005 01 - 19 CN ≤ 0 005 005 02 02 02 20 Volatilized Hydroxybenzene ≤ 0 002 0 002 0 005 001 01 21 Oil ≤ 005 005 005 05 10 22 Anionic Surfactant ≤ 02 02 02 03 03 2- 23 S ≤ 005 01 02 05 10 24 Faecal coliform bacteria 200 2000 10000 20000 40000 Source: Unofficial translation of Chinese original, Environmental Quality Standards for Surface Water (GB3838-2002), National Standards of the People's Republic of China.

There are 593.18 ha of greenbelt in Loudi, and the vegetation coverage ratio and greenbelt ratio are 36.2% and 31.4% respectively. Though there are several areas of natural gardens and forest within the city area none are within the SSA or SEIA. Vegetation along the rural portions of the Lianshui and Sunshui rivers tends to consists of small crop plots, abandoned fields and “waste” lands that are covered with mixed grasses and small shrubs, and there is very little natural vegetation in the SSA and the SEIA. In some places there is a protective band of mixed trees and shrubs along the river bank edges in the rural areas, and there are also some orange orchards. In the more urban areas houses and commercial buildings and roads have completely displaced all natural vegetation.

There are no records or reports of rare or endangered flora or historic trees in the SSA or SEIA.

4.2.2. TERRESTRIAL AND AQUATIC WILDLIFE

As there is very little natural habitat remaining in the SEIA there are also few remaining wild faunal species, though there are reports of wildlife (the information is not more specific than that) in the hills in the more remote surrounding region. Terrestrial animals in the SEIA primarily

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consist of amphibians, reptiles, rodents and birds, as well as farm animals. There are no records or reports of protected or endangered terrestrial or aquatic species in the SEIA or surrounding project area.

4.2.3. FISHERIES

Fish species in the Lianshui and Sunshui Rivers are reported to include a variety of species of carp. However, the quality of both rivers is degraded and apparently neither supports significant populations of commercially important fish species, although the fish resources in the Sunshui are reportedly somewhat higher than the Lianshui. There is reportedly little fishing activities in either river within the SEIA. There are no records or reports of protected or endangered fish species in the SEIA or surrounding project area.

4.2.4. PROTECTED AREAS AND NATURE RESERVE

There are no protected areas, nature reserves or natural parks in the SEIA or surrounding project area.

4.3. SOCIOECONOMIC CONDITIONS

4.3.1. DEMOGRAPHIC PROFILE

The Loudi Urban Flood Protection Subproject is located in Louxing District, the urban district of Loudi Municipality. In Louxing District there were 159,500 households and 412,300 persons in 2003, with an average family size of 2.58 persons and a gender ratio of 48% female and 52% male. The urban population was 250,570 persons or 61%, which was 27.5% higher than that in Hunan Province. There were only 2,027 ethnic minority persons living in the District, accounting for 0.5% of the total population. Table 4-3 provides a summary of basic demographic data for Louxing District in relation to Hunan Province.

TABLE 4-3: DEMOGRAPHIC PROFILE OF LOUXING DISTRICT AND HUNAN PROVINCE

Parameter Louxing Hunan Total Households 159,500 19,295,900 Total Population 412,300 66,628,000 Male Population 213,000 34,533,300 Female Population 199,300 32,094,700 Urban Population 250,570 22,320,400 Rural Population 161,730 44,307,600 Urbanization Rate％ 60.7% 33.50% Total Laborers (Rural) 75,600 29,143,800 Male Laborers (Rural) 38,500 15,790,500 Female Laborers (Rural) 37,100 13,353,350 Minority Population 2,027 4,823,800 Percent of Minorities 0.5% 7.24% Source: Loudi City and Louxing District Statistical Yearbooks.

Within the Subproject flood protection zone there are 30,034 households and 86,310 persons, including an urban population of 38,379 persons or 56%. The male and female ratio is 51 to 49; and the minority population accounts for approximately 1.1%.

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4.3.2. ECONOMIC PROFILE

The total GDP in Louxing in 2003 was CNY 5.44 billion, averaging CNY 13,597 per capita, about twice the provincial average of CNY 6,963. In terms of GDP composition the agricultural sector only accounted for 5.4%, 13.7% lower than the Hunan provincial average. The industrial sector contribution was 52.2%, 14.5% higher than that in Hunan, while the tertiary sector contributed 42.4%, almost the same as the provincial average.

Income in rural areas of Louxing was CNY 2,929 per capita, about 18% higher than the provincial average. Urban per capita income was CNY 7,252, slightly higher than the provincial average. Table 4-4 provides an economic profile of Louxing District contrasted with Hunan Province.

In spite of being an urban district the agricultural sector still plays some role in the overall economy of Louxing and in 2003 accounted for 5.4% of the total GDP. There are 7,660 ha of farmland in the district of which 77% is rice paddy field. Based on a rural population of 161,730, per capita farmland was 0.71 mu in 2003, 55% of the provincial average.

TABLE 4-4: ECONOMIC PROFILE OF LOUXING DISTRICT AND HUNAN PROVINCE (2003)

Economic Indicators Louxing District Hunan Provincial Average Total GDP (Billion Y) 5.44 463.87 Per Capita GDP (RMB) 13597 6963 GDP in Agriculture Sector (Billion Y) 0.29 88.65 Percent from Agricultural Sector 5.4% 19.1% GDP in Industrial Sector (Billion Y) 2.84 179.42 Percent from Industrial Sector 52.2% 38.7% GDP in Tertiary Sector (Billion Y) 2.31 195.81 Percent from Tertiary Sector 42.4% 42.2% Annual Growth Rate of GDP (%) 10.0 9.6 Per capita farmland (mu) (1 ha = 15 mu) 0.71 1.3 Per capita income in rural area (Y) 2929 2471.6 Per capita income in urban area (Y) 7252 7074.6 Source: Louxing District Statistical Yearbook 2004 and Hunan Statistical Yearbook 2004.

4.3.3. POVERTY PROFILE

As the urban center of Loudi Municipality, Louxing District is not classified as a poverty county and rural poverty is not considered a serious issue in the district, illustrated by the lack of a Poverty Alleviation Office. In 2004 part of Louxing District was separated to form an industrial development zone, which led to some administrative changes. As a result, there is no official poverty population data available for Louxing District. Based on ratios from other similar nearby areas there were an estimated 4,981 persons below the CNY 900 per capita income poverty level in 2003, accounting for 3.1% of the total population in rural areas of the district. In comparison, the urban poverty ratio in these districts was 12.9%, more than 4 times that in the rural areas (the urban poverty line is an per capita income of less than CNY 200 per month). Table 4-5 provides a summary of poverty conditions in Louxing District.

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TABLE 4-5: POVERTY PROFILE, LOUXING DISTRICT (2003)

Items Louxing District Total Population 423,000 Urban Population 250,570 Rural Population 161,730 Poverty Population * 37,598 Percent of Poverty Population 9.5% Urban Poverty Population 32,351 Percent of Urban Poverty % 12.9% Rural Poverty Population 4,981 Percent of Rural Poverty (

4.3.4. MINORITY PROFILE

There are an estimated 960 minority persons living in the SSA, accounting for 1.1% of the population. These minority persons entitle to the same rights to education and employment as Han people and there are no obvious differences in their economic conditions and income levels.

4.3.5. ARCHAEOLOGY, CULTURAL AND RECREATIONAL PROFILE

There is at least one specially designated historic site in Loudi, the Kaitian Temple, a provincially protected site on the right bank of Lianshui, approximately 4 km downstream of the Loudi Bridge. The temple is less than 20 m from the river bank and special measures will be required to protect it.

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5. SCREENING OF POTENTIAL IMPACTS AND MITIGATION

5.1. APPROACH TO ENVIRONMENTAL SCREENING

This chapter assesses potential environmental impacts associated with the proposed Subproject and recommends appropriate mitigation measures where necessary. Potential environmental impacts are analyzed by examining the impact of each stage of the Subproject implementation on the natural and human environment. Each component identified as having the potential for negative impacts is assessed in detail, including a review of potential impacts, recommendations for appropriate mitigation measures, recommendations for additional environmental analysis (if required), and analysis of residual impacts, if any.

The environmental screening is based on:

– a review of Government of China (GOC) publications, scientific literature, and previous technical and environmental impact studies;

– a review of available information on the Subproject design;

– consultation with local subproject Project Management Offices (LPMOs), Environmental Protection Bureaus (EPBs) and other agencies;

– relevant guidelines and policies of the Asian Development Bank (see Section 2.2);

– field visits and surveys.

The result of the screening of potential environmental impacts is summarized in Table 5-1 and presented in detail in Sections 5.2 to 5.4.

5.2. SITING

5.2.1. LAND ACQUISITION AND RESETTLEMENT

5.2.1.1. POTENTIAL IMPACT

The subproject will permanently acquire about 106 ha of land. Approximately 48% of this is farmland, which will affect a total of 669 households (507 permanently) and 1,884 persons (1,569 permanently). On average each affected person will lose about 0.03 ha of farmland, which represents a 61% loss of their current farmland. The remaining 52% is orchard, housing plots and wasteland as well as state owned urban land. Approximately 83 ha of land will be occupied temporarily during the construction phase, some of which is also farmland.

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TABLE 5-1: SUMMARY SCREENING OF POTENTIAL IMPACTS ON NATURAL AND SOCIAL ENVIRONMENT, LOUDI CITY SUBPROJECT

Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources Environmental Issues Associated with Subproject Siting Land Acquisition Risk of serious (-) - All recommendations for compensation and - LPMO 16.3 and Resettlement social inequities if - 106 ha of resettlement presented in the Loudi SPIA - Local EPB (FSP cost) compensation is permanent land and RP should be fully implemented. inadequate or acquisition - A Loudi Subproject Facilities Siting Plan inappropriate. including 50.88 (FSP) to be developed which appropriately ha farmland. locates temporary worker camps, - 151 households construction facilities, spoil disposal sites, demolished etc, to minimize social and environmental involving 488 impacts people. - Loudi EPB to review and approve the FSP. - 8 enterprises demolished involving 1,978 employees. - 83 ha of temporary land acquisition. Encroachment into Risk of reducing (-) - All recommendations for compensation and - LPMO - Refer to FSP Productive income generation - 50.88 ha of resettlement presented in the Loudi SPIA - Local EPB cost, above. Agrosystems of affected families. permanent and RP should be fully implemented. farmland - Loudi EPB to review and approve the FSP so acquisition as to minimize temporary farmland affecting 507 acquisition for worker camps, construction households and facilities, etc. 1,569 persons. - Temporary acquisition of 83 ha also includes farmland.

5 All costs associated with compensation and resettlement are presented in the Resettlement Plans (RPs). 6 The full Environmental Management Plan (EMP) budget is presented in Table 7-1. Some cost categories included in Table 7-1, such as administration, training, site inspections and monitoring and government revegatation fee are not included in this table.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources Encroachment into Loss of ecological No sensitive - As part of the development of the FSP an - LPMO - Refer to FSP Precious Ecological resources such as resources or ecological safeguard survey should be - Local EPB cost, above. Areas wetlands and rare rare and undertaken to identify any potential sensitive - HHPDI and endangered endangered terrestrial or aquatic ecological resources. flora and fauna. flora and fauna - Loudi EPB to review and approve the FSP so identified in as to ensure no ecological resources are the SEIA. impacted. Encroachment on Loss of historical or - Kaitian Temple - As part of the FSP approval process the - LPMO - Refer to FSP Historical or Cultural cultural features. very close to Loudi EPB should consult the Public Affairs - Local EPB cost, above Features dike and Culture Relics Bureau to ensure that - Local Public construction site there are no other historical or cultural areas Affairs and - Some graves that will be affected. Culture Relics may also be - Any historical or cultural feature within the Bureau affected. SEIA should be designated a no entry-zone - Contractor on the Loudi FSP. - Any historical or cultural feature within 25 m of a construction site or 5 m of a project transportation route should be demarcated with flagging to enforce the no-entry designation. In addition, if any of these features are designated by the Public Affairs and Culture Relics Bureau as being sensitive to construction related impacts then they should be protected with fencing or other suitable measures. - Affected graves should be moved to an appropriate burial site. Impairment of Economic loss (-) - The Public Roads and Transportation - LPMO - Cost of Transportation - Dike Administration Bureau to be consulted to - Local Public trans- (access to fields or construction ensure access routes are not unduly affected Roads and portation settlement) may cause and that sufficient alternatives are provided. Transportation alternatives localized and Administration included in short-term traffic Bureau capital disruptions. - Contractor budget Loss of Mineral Economic loss Apparently no Resources mineral resources affected. Destruction of Economic loss (-) - Any affected public facilities will be replaced - LPMO - Cost of Public Facilities - Some tele- or repaired, and compensation should be - Contractor replacement communications provided to any affected persons or of public

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources and electrical enterprises. facilities infrastructure included in may be affected. capital budget Environmental Issues Associated with Subproject Construction Hydrology Local hydrology Dike - - changes construction will not affect Localized flooding hydrology of the Lianshui and Sunshui rivers. Water Quality Soil erosion may (-) A site construction EMP will be developed. - LPMO 191.34 reduce water quality - Erosion from The EMP will require that: - Contractor and impact aquatic construction - All construction areas should have a siltation ecology sites and source fence protecting the Lianshui and Sunshui rock and soil rivers from erosion and siltation along the piles may entire length of the construction site. reduce water - In addition, in areas classified as water quality in the source protection zones silt traps should be Lianshui and installed at natural drainage entry points in Sunshui Rivers. construction sites. - All other construction sites within 50 m of water bodies should have siltation fences on the downstream drainage side to protect against erosion and siltation. If these sites are near water source protection zones silt traps should also be installed on any drainage points. - Rock and dirt piles should be covered when not in use, and siltation fences and traps should be installed on the downstream drainage side if near water bodies. - Exposed dikes and ground surfaces should be protected with appropriate engineered and vegetative protection measures, including grass, cement, rip rap, etc. Construction waste (-) The EMP will require that: - Contractor 8.8 water disposal may - Approximately - Wastewater from concrete washing and - LPMO reduce water quality 14,500 m3 of curing should only be directed to the local and impact aquatic construction sewer system or local drainage channels ecology wastewater from near the construction site and not directly to

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources washing and the Lianshui or Sunshui Rivers. curing concrete - Water from vehicle and equipment washing works will be should be directed to the local sewer system produced which or local drainage channels near the may have a construction site and not directly to the short-term Lianshui or Sunshui Rivers. Oils should first impact on the be removed as much as practical. water quality in - Receiving drainage ditches should be the Lianshui or equipped with a bioswale and siltation traps Sunshui Rivers. prior to their discharge to any major receiving water body. Dredging may (-) The EMP will require that: - Contractor 0.3 impact water quality - Dredging will - The amount of dredging should be - LPMO and affect municipal result in minimized. water treatment localized and - No dredging should take place during fish plant short-term water migratory or spawning seasons. quality - No dredging for construction materials (as reductions. opposed to increasing flow capacity) - May result in upstream of the water intake will be allowed. short-term - Dredging done upstream of the municipal elevated levels water treatment plant intake should be of contaminated carefully scheduled in conjunction with the sediments plant management so as to not impact the (heavy metals) drinking water supply. Water intake should in the water be stopped prior to the commencement of column. dredging, and no water intake will be allowed until any sediment plume has been fully dispersed and the SS levels return to within 5% of background levels. - Water quality during dredging should be monitored 500 m downstream of the site and activities should be halted if SS levels exceed relevant standards. - Public notice of any interruption to the water supply service should be provided a minimum of 2 weeks in advance. - Compensation to the water treatment plant for lost water withdrawal days may be required.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources Inappropriate (-) The EMP will require that: - Contractor 8.8 sewage disposal - Approximately - Temporary toilets will be provided at a rate of - Loudi Health could impact water 187,200 m3 1 for every twenty workers. and Sanitation quality domestic - All domestic wastewater from the workers Company wastewater will camps should be collected and discharged to be generated. the municipal sewerage system. - On-site sewage will be collected as necessary by the Loudi Health and Sanitation Company and treated or discharged to the municipal sewerage system. - Regular cleaning and disinfection of the toilets should be undertaken so as to avoid breeding of flies and mosquitoes. Solid Waste Inappropriate spoil (-) The EMP will require that: - Contractor 135.2 disposal may reduce - Up to 663,000 - Maximum use should be made of on site - LPMO overall m3 spoil will be excavated materials so as to minimize spoil environmental generated. production. quality - Spoil area - The disposal sites should be identified in the approximately FSP, and should not be in or near any 14 ha. sensitive areas. - Spoil disposal should only be allowed in designated sites. - Erosion protection measures such as silt fences and covering the spoil mounds should be implemented. - Upon completion of construction the spoil deposits should be re-vegetated with appropriate native grasses and shrubs. Inappropriate (-) The EMP will require that: - Contractor construction rubble - Construction - Maximum use should be made of - LPMO disposal may reduce rubble will be construction rubble as fill where/ if overall generated with appropriate. environmental building - Rubble should only be stored on sites quality demolition and temporarily, and should be land filled if space dike is available, or disposed of in a designated rehabilitation. construction waste disposal site as approved by the Loudi EPB. Inappropriate (-) The EMP will require that: - Contractor dredgate disposal - Dredging of a - The dredgate disposal sites should be - LPMO may reduce overall total of 308,000 identified in the FSP, and should not be in or environmental m3 of bottom near any sensitive areas. quality sediments, sand - Disposal should only be allowed in

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources shoals, designated sites. collapsed bank - Erosion protection measures such as silt materials, some fences and covering the spoil mounds should of which may be be implemented. contaminated - Upon completion of construction the spoil with industrial deposits should be vegetated with wastes. appropriate native grasses and shrubs. - Because of the potential for sediments to be contaminated with industrial pollutants use for agriculture and/or housing should not be allowed on these sites. Inappropriate (-) The EMP will require that: - Contractor 13.54 domestic solid - Up to 1,560,000 - Waste containers will be provided at a rate of - Loudi Health waste may reduce kg of domestic 1 for every twenty workers. and Sanitation overall waste will be - Domestic solid waste produced by Company environmental produced by construction workers must be deposited into quality construction waste containers. workers. - Collection and disposal of domestic solid waste will be undertaken by the Loudi Health and Sanitation Company. Waste disposal will only be allowed at the Loudi disposal site. Air Quality Dust may reduce air (-) The EMP will require that: - Contractor 8.34 quality - Transportation - Transportation roads within the construction will create dust site should be hardened. within 30 m of - Transportation roads within the construction roads. site and the surrounding urban area should - Dust may be be regularly sprayed with water so as to generated by control dust. cement - Truck loads should be covered with an transport and awning to prevent dust emissions. mixing. - The cement transport and mixing process - Soil and spoil should be carried out under closed piles may conditions. Cement should be transported by generate dust. closed tankers, and should be conveyed to - Dike the concrete mixer by a closed cement construction in pump. urban areas - Soil piles should be covered unless being may create actively used. Piles should be sprayed with localized dust water when not covered. Spoil and dredgate problems. piles should also be covered unless being actively used, and should be sprayed with water when not covered.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources - For construction of dikes close to dense residential areas fiber texture protection fences should be installed on the urban side of the dike to reduce air and noise pollution. Vehicle emissions (-) The EMP will require that: - Contractor 2.78 may reduce air - Vehicle and - All construction machinery and transportation quality heavy vehicles should be equipped with exhaust machinery emission systems that meet relevant PRC emissions will emission standards. have localized - Vehicle emission systems should be impact. inspected at constriction outset and then on a bi-annual basis. Noise Pollution Transportation and (-) The EMP will require that: - Contractor 2.0 heavy machinery - Potential for operation may affect noise impacts Noise from Transport Vehicles local peoples and where - vehicle overloading is prohibited; workers construction is - horn operation in urban areas is prohibited; taking place in and Dike construction in densely - all vehicles should have functioning mufflers urban areas may populated urban that meet relevant standards. affect local residents areas. Noise from Heavy Machinery - all construction machinery should be in full compliance with the relevant standards; - low noise construction methods should be adopted wherever possible; - regular maintenance of machinery should be undertaken to reduce operational noises. - construction personnel working in high noise level situations should be provided with protective equipment and should not work continuously in such situations for more than 6 hours per day.

Dike Construction: - construction of dikes in urban areas is prohibited between from 10:00 pm to 6:00 am daily; - in areas that are particularly sensitive to noise (e.g. within 200 m of schools and hospitals), structural measures such as sound separation walls should be

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources implemented. Compensation for high noise levels may also be required. Flora Threat to or loss of (-) - As part of the development of the FSP an - LPMO - Refer to FSP important flora. - 106 ha of land to ecological safeguard survey should be - Local EPB cost, above be permanently undertaken to identify any potential sensitive occupied and 83 terrestrial or aquatic ecological resources. ha to be - Loudi EPB to review and approve the FSP so temporarily as to ensure no ecological resources are occupied do not impacted. include any rare or endangered Compensation vegetation should be planted at - Contractor 2.84 flora, primary all suitable locations. Specifically: forest or special - native grasses should be planted along dikes habitat. slopes in order to provide slope protection where possible/practical; - all borrow pit areas should be fully re- vegetated with appropriate native species of grass, shrubs or trees in order to replicate local natural vegetation cover; - all spoil disposal sites should be fully re- vegetated with grasses, shrubs or trees in order to replicate local natural vegetation cover. - trees and vegetation to be planted in areas targeted for resettlement Fauna Threat to or loss of (-) - As part of the development of the FSP an - LPMO - Refer to FSP important fauna. - 106 ha of land to ecological safeguard survey should be - Local EPB cost, above be permanently undertaken to identify any potential sensitive occupied and 83 terrestrial or aquatic ecological resources. ha to be - Loudi EPB to review and approve the FSP so temporarily as to ensure no ecological resources are occupied do not impacted. include any rare or endangered fauna. Aquatic Life Threat to or loss of (-) The EMP will require that: - LPMO - Refer to FSP important aquatic - Dredging of - The amount of dredging is to be kept to an - Local EPB cost, above flora and fauna. 308,000 m3 of absolute minimum. sand and gravel - No dredging should take place during fish will have migratory or spawning seasons. localized

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources impacts, but areas are degraded habitat and do not support any rare or endangered aquatic flora or fauna. Public Health and Potential for disease (-) - A Health and Safety plan will be developed - LPMO 21.3 Safety Protection at worker camps if Worker camp will that will specify the Health and Safety - Contractor sanitation is poor. generate: obligations of the contractor. - 1,560,000 kg of - Any worker who develops an infectious domestic waste. disease should receive adequate medical - 187,200 m3 care, and should be quarantined during the domestic infectious period. wastewater. - Any disease out break shall be reported to the relevant health authorities immediately. All instructions issued by the health authorities to deal with the outbreak shall be immediately implemented. - Workers must be provided with protective gear as required by the PRC Labor Law (1994) and relevant Hunan provincial regulations. - The maximum working shift is 8 hours per day. - In high noise conditions a maximum of 6 hours per day only is permitted. - Best practice on and off site safety practices to be implemented, including limiting vehicle speeds, fencing unsafe sites, etc. - In addition, see the requirements noted above for domestic waste and sewage.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources Environmental Issues Associated with Subproject Operation Hydrology Modifications to - The dikes will (+) hydrology and have no - Reduction in flooding. significant flooding in Loudi effect on the protection zones Lianshui or Lianshui hydrology. Water Quality Reduction in water (+) quality. - Improved flood protection will reduce ecological damage and water pollution from flood events Flora and Fauna Impacts on No negative (+) important flora and impacts on - Flood protection fauna. flora and will reduce fauna. damage to flora and fauna within the protection zone. Air Quality Air quality reduction (-) - Maintain roads adequately to control dust - LPMO - Cost - Slight increase levels. incurred in dust beyond emissions from project dike roads. duration Traffic Changes to traffic (+) patterns. - Improved flood protection will reduce flood related traffic disruptions. - Dike roads will improve road and traffic safety conditions.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104 CNY)5 6 Social Resources Public Safety (+) - Improved flood protection will enhance public safety.

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In addition, a total of 51,213 m2 of buildings will be demolished, including 30,723 m2 of residential houses and 20,490 m2 of non-residential structures. The demolition will relocate 151 households and 488 persons and affect 18 enterprises and 1,978 employees. Other affected assets include telecommunications and electrical infrastructure, ponds for fish and lotus cultivation, sheds, walls, graves and orchards.

5.2.1.2. RECOMMENDED MITIGATION MEASURES

The Loudi Subproject SPIA and Resettlement Plan (RP) have been prepared in accordance with the standards and requirements of the PRC Land Administration Law7 (1998) and the associated Hunan Provincial Implementation Decree (2000), as well as the ADB’s Policy on Involuntary Resettlement. All recommendations for compensation and resettlement presented in the SPIA and RP should be fully implemented. If done appropriately the relocation will provide an opportunity to improve current housing condition for the affected persons. Affected rural households will be moved a short distance to another site within their original villages.

A Loudi Subproject Facilities Siting Plan (FSP) should be developed which appropriately locates temporary worker camps, construction facilities, etc, so as to minimize social and environmental impacts. Emphasis should be placed on siting these facilities in areas that have minimal existing settlements and productive systems. The FSP should be submitted to the Loudi EPB for approval. If the plan indicates facilities are sited inappropriately and may result in excessive social impacts then the plan should be modified until Loudi EPB approval is obtained.

5.2.1.3. RESIDUAL IMPACT

The extent of resettlement for the Loudi subproject is relatively large. However, implementation of the recommendations in the SPIA and the RP, and appropriate siting of the facilities should ensure that the living standards of the affected persons are maintained and/or improved.

5.2.2. AGRICULTURE PRODUCTION

5.2.2.1. POTENTIAL IMPACT

The Subproject permanent farmland acquisition is 50.88 ha. The temporary land acquisition may also include some farmland. Land acquisition may lead to a decrease in income for the affected farmers.

5.2.2.2. RECOMMENDED MITIGATION MEASURES

All recommendations for compensation and resettlement presented in the Loudi SPIA and RP should be fully implemented.

The FSP should emphasize the appropriate siting of worker camps, construction facilities, etc, so as to minimize temporary farmland acquisition. The FSP should be submitted to the Loudi EPB for approval. If the plan indicates facilities are sited inappropriately and may result in unnecessary temporary farmland loss then the plan should be modified until Loudi EPB approval is obtained.

7 Stipulates the regulations for land compensation, resettlement subsidies, crop compensation, house compensation and other measures to carry out resettlement.

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5.2.2.3. RESIDUAL IMPACT

No significant residual impact is predicted.

5.2.3. ECOLOGICAL RESOURCES

5.2.3.1. POTENTIAL IMPACT

There are no precious ecological resources, sensitive areas or rare flora and fauna identified in the SEIA. There will be some small scale impacts on resident fauna such as of amphibians, reptiles, rodents and birds, and on resident flora, but it will be limited and is not considered significant.

5.2.3.2. RECOMMENDED MITIGATION MEASURES

Although no precious ecological resources, sensitive areas or rare flora and fauna have been identified to date, the development of the FSP should include an ecological safeguard survey of all areas were facilities will be sited, including the borrow pit areas and the waste spoil disposal areas. Facilities should not be sited within 50 m of any areas of natural wetland, rare and endangered flora and fauna or other sensitive ecosystem that may be identified (none have been to date).

The FSP should be submitted to the Loudi EPB for approval. If the plan indicates facilities are sited inappropriately and may result in impacts on any identified precious ecological resources then the plan should be modified until Loudi EPB approval is obtained.

5.2.3.3. RESIDUAL IMPACT

No significant residual impact is predicted.

5.2.4. HISTORICAL AND CULTURAL VALUES

5.2.4.1. POTENTIAL IMPACT

There is at least one specially designated historic site in Loudi, the Kaitian Temple, a provincially protected site on the right bank of Lianshui, approximately 4 km downstream of the Loudi Bridge. The temple is less than 20 m from the river bank and special measures will be required to protect it. Some grave sites may also be affected by construction activities.

5.2.4.2. RECOMMENDED MITIGATION MEASURES

As part of the FSP approval process the Loudi EPB should consult the Public Affairs and Culture Relics Bureau to ensure that there are no other historical or cultural areas that will be affected.

Any historical or cultural feature within the SEIA should be designated a no entry-zone on the Loudi FSP. Any historical or cultural feature within 25 m of a construction site or 5 m of a project transportation route should be demarcated with flagging to enforce the no-entry designation. In addition, if any of these features are designated by the Public Affairs and Culture Relics Bureau

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as being sensitive to construction related impacts then they should be protected with fencing or other suitable measures. In addition, affected graves should be moved to an appropriate burial site.

5.2.4.3. RESIDUAL IMPACT

With the implementation of the recommended mitigation measures no significant residual impact is predicted.

5.2.5. TRANSPORTATION

5.2.5.1. POTENTIAL IMPACT

The building of the dikes may cause some localized and short-term traffic disruptions.

5.2.5.2. RECOMMENDED MITIGATION MEASURES

The Public Roads and Transportation Administration Bureau should be consulted to ensure that access routes are not unduly affected and that if necessary alternative routes are provided that are sufficient to meet the needs of the affected persons.

5.2.5.3. RESIDUAL IMPACT

The transportation negative impacts will be minimal and short-term. No significant residual impact is anticipated.

5.2.6. MINERAL RESOURCES

5.2.6.1. POTENTIAL IMPACT

The Subproject will not cause the loss of mineral resources. The temporary land acquisition in the borrow pits and spoil area will have no significant effect on the exploitation of any identified or potential mineral resources.

5.2.7. PUBLIC FACILITIES

5.2.7.1. POTENTIAL IMPACT

The building of the dike project may affect may affect some telecommunications and electrical infrastructure.

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5.2.7.2. RECOMMENDED MITIGATION MEASURES

As part of the implementation of the civil works any affected public facilities will be replaced or repaired. In addition appropriate compensation should be provided to affected persons or enterprises.

5.2.7.3. RESIDUAL IMPACT

No significant residual impact is predicted.

5.3. CONSTRUCTION

5.3.1. HYDROLOGY

5.3.1.1. POTENTIAL IMPACT

The construction of the dikes and associated works along the Lianshui and Sunshui Rivers will not involve any significant in-channel activities and will not cause any significant impact on hydrology.

Dredging activities may have some very localized short-term impacts to hydrology, but overall will lead to increased flow capacity.

5.3.2. WATER QUALITY

5.3.2.1. POTENTIAL IMPACT

Surface erosion from construction activities along the Lianshui and Sunshui rivers may lead to a reduction in the quality of the river water quality. Potential construction sites where erosion may occur include the dikes, the borrow pits, and the spoil and dredgate disposal sites. However, erosion to a large extent can be mitigated, and given the existing high levels of erosion and sediment in the watershed (the potential erosion coefficient in the area is 1500 to 2000t/km2) it will only have a modest impact.

Washing and curing of concrete and construction of culvert sluices will generate wastewater at a rate of approximately 1 m3 wastewater per m3 of concrete produced. At that rate the Subproject construction will generate approximately 14,500 m3 of wastewater, which typically has a SS concentration of 300 to 500 mg/l and a pH value of 11 to 12. As the discharge of this wastewater will be over a wide area the discharge load from each individual construction site will be relatively low. The wastewater will be discharged into the ditches close to the construction site that will not directly impact on the river water quality.

Dredging of a total of 308,000 m3 of bottom sediments, sand shoals, collapsed bank materials, and domestic and other solid wastes and detritus in the channels of the Lianshui and Sunshui rivers will disturb the bottom sediments and will significantly increase the sediment content in the water column for short periods. The sediments may be contaminated with heavy metals and other pollutants and this will reduce water quality until the sediments are re-entrained. The impact will be localized and short-term, and the highest degree of impact is expected within a zone 500m downstream of the dredging sites. In these locations for short periods of time the

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maximum concentrations of SS and heavy metals may exceed the relevant standards. This is particularly important in the Sunshui River where the municipal water intake for Loudi is located.

Wastewater from construction personnel mainly consists of domestic sewage and gray water, with an estimated loading rate of 120 l/person/d or roughly equivalent to 187,200 m3. The wastewater will be directed to the city sewerage system and is not expected to have a significant incremental impact on water quality.

5.3.2.2. RECOMMENDED MITIGATION MEASURES

A Loudi Subproject construction EMP will be developed which will specify best-practice construction phase water quality protection measures as follows:

Soil Erosion Control - All dike construction areas should have a siltation fence protecting the Lianshui and Sunshui Rivers from erosion and siltation along the entire length of the construction site. These fences will also protect the rivers against construction rubble and garbage. - In construction areas near water source protection zones silt traps should be installed at natural drainage entry points in construction sites. - All other construction sites within 50 m of water bodies should have siltation fences on the downstream drainage side to protect against erosion and siltation. - Rock and dirt piles should be covered when not in use, and siltation fences and traps should be installed on the downstream drainage side if near water bodies. - Exposed dikes and ground surfaces should be protected with appropriate engineered and vegetative protection measures, including grass, cement, rip rap, etc.

Construction Wastewater Control - Wastewater from concrete washing and curing should only be directed to the local sewer system or local drainage channels near the construction site and not directly to the Lianshui and Sunshui Rivers. - Receiving drainage ditches should be equipped with a bioswale and siltation traps prior to their discharge to any major receiving water body. - Water from vehicle and equipment washing should be directed to the local sewer system or local drainage channels near the construction site and not directly to the Lianshui and Sunshui Rivers. Oils should be removed first as much as practical. - Receiving drainage ditches should be equipped with a bioswale and siltation traps prior to their discharge to any major receiving water body.

Dredging Control - The amount of dredging is to be minimized. - No dredging should take place during fish migratory or spawning seasons. - No dredging for construction materials (as opposed to increasing flow capacity) upstream of the water intake will be allowed. - Dredging done upstream of the municipal water treatment plant intake should be carefully scheduled in conjunction with the plant management so as to not impact the drinking water supply. Water intake should be stopped prior to the commencement of dredging, and no water intake will be allowed until any sediment plume has been fully dispersed and the SS levels return to within 5% of background levels. - Water quality during dredging should be monitored 500 m downstream of the site and activities should be halted if SS levels exceed relevant standards. - Public notice of any interruption to the water supply service should be provided a minimum of 2 weeks in advance. - Compensation to the water treatment plant for lost water withdrawal days may be required.

Sewage

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- Temporary toilets will be provided at a rate of 1 for every twenty workers. - All domestic wastewater from the workers camps should be discharged to the municipal sewerage system. - On-site sewage will be collected as necessary by the Loudi Health and Sanitation Company and treated or discharged to the municipal sewerage system. - Regular cleaning and disinfection of the toilets should be undertaken so as to avoid breeding of flies and mosquitoes.

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Safety – Best practice on and off site safety practices to be implemented, including limiting vehicle speeds, fencing unsafe sites, etc.

5.3.2.3. RESIDUAL IMPACT

With the implementation of appropriate mitigations measures the impact on water quality will be limited.

5.3.3. SOLID WASTE

5.3.3.1. POTENTIAL IMPACT

Solid wastes that will be generated by the Subproject during the construction phase include spoils from the earthworks, construction wastes, and domestic solid wastes produced by the workers:

- The project may generate over up to 663,000 m3 of earth, gravel and rock spoil. - An as yet undefined amount of construction wastes and rubble will be generated. - A total of 308,000 m3 of bottom sediments, sand shoals, collapsed bank materials, and domestic and other solid wastes and detritus. - Up to 1,560,000 kg of domestic solid waste will be generated during the construction period (based on a per capita waste production of 1.0 kg). This will be produced over a large area, and if not collected and disposed of appropriately will result in a reduction in overall environmental quality.

5.3.3.2. RECOMMENDED MITIGATION MEASURES

The EMP will specify waste management procedures as follows:

Spoils From Earthworks - Maximum use should be made of on site excavated materials so as to minimize spoil production - The disposal sites should be identified in the FSP, and should not be in or near any sensitive areas. - Spoil disposal should only be allowed in designated sites. - Erosion protection measures such as silt fences and covering the spoil mounds should be implemented. - Upon completion of construction the spoil deposits should be re-vegetated with appropriate native grasses and shrubs.

Construction Wastes and Rubble - Maximum use should be made of construction rubble as fill where/ if appropriate. - Rubble should only be stored on sites temporarily, and should be land filled if space is available, or disposed of in a designated construction waste disposal site as approved by the Loudi EPB.

Dredgate - The dredgate disposal sites should be identified in the FSP, and should not be in or near any sensitive areas. - Disposal should only be allowed in designated sites.

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- Erosion protection measures such as silt fences and covering the spoil mounds should be implemented. - Upon completion of construction the spoil deposits should be vegetated with appropriate native grasses and shrubs. Because of the potential for sediments to be contaminated with industrial pollutants the use of these sites for agriculture and/or housing should not be allowed.

Domestic Waste - Waste containers will be provided i at a rate of 1 for every twenty workers. - Domestic solid waste produced by construction workers must be deposited into waste containers. - Collection and disposal of domestic solid waste will be undertaken by the Loudi Health and Sanitation Company. Waste disposal will only be allowed at the Loudi domestic solid waste deposit site.

5.3.3.3. RESIDUAL IMPACT

No significant residual impact is predicted.

5.3.4. AIR QUALITY

5.3.4.1. POTENTIAL IMPACT

The primary atmospheric pollutants generated during construction are dust and particulate matter produced during vehicle transport, cement mixing, and wind-generated soil erosion; and emissions from transport vehicles and heavy machinery.

Dust from construction vehicles arises from both erosion of the road surface and loss of soil from vehicle loads. Dust levels are generally highest within 30 m of either side of the road, and with increased distance the concentration decreases gradually towards background levels. Construction will primarily be undertaken in the fall and winter when the atmosphere and roads are relatively dry, conditions that are conducive to dust generation. Dust will also arise from wind borne erosion of soil piles and spoil piles.

The main pollutants in vehicle and heavy machinery emissions include NO2, CO, and SO2. Emission levels will be low when compared to the total vehicle emissions in the area.

5.3.4.2. RECOMMENDED MITIGATION MEASURES

The transportation roads within the construction site should be hardened, and the transportation roads within the construction site and the surrounding urban area should be regularly sprayed with water so as to control dust. Truck loads should be covered with an awning to prevent dust emissions.

The cement transport and mixing process should be carried out under closed conditions. Cement should be transported by closed tankers, and should be conveyed to the concrete mixer by a closed cement pump.

Soil piles should be covered unless being actively used. Piles should be sprayed with water when not covered. Spoil piles should also be covered unless being actively used, and should be sprayed with water when not covered.

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For construction of dikes close to dense residential areas fiber texture protection fences should be installed on the urban side of the dike to reduce air and noise pollution.

All construction machinery and transportation vehicles should be equipped with exhaust emission systems that meet relevant PRC emission standards. Vehicle emission systems should be inspected at construction outset and then on a bi-annual basis.

5.3.4.3. RESIDUAL IMPACT

Few significant residual impacts are identified after implementation of the measures.

5.3.5. NOISE

5.3.5.1. POTENTIAL IMPACT

Noise will be generated during the construction phase from machinery (excavators, bulldozers, loaders and concrete mixers), construction activities, and transportation vehicles, and the Class II Standard (the continuous equivalent sound level in A scale shall not exceed 60 dB in the daytime and 50 dB in the night time) as specified in The National Standards for Environmental Noises in Urban Areas (GB 3096-93) could be exceeded which will negatively impact schools and residential areas close to the construction sites.

5.3.5.2. RECOMMENDED MITIGATION MEASURES

Noise from Transport Vehicles - vehicle overloading is prohibited; - horn operation in urban areas is prohibited; and - all vehicles should have functioning mufflers that meet relevant standards.

Noise from Heavy Machinery - all construction machinery should be in full compliance with the PRC Standards of Environmental Noise of Urban Areas (GB3096-93); - low noise construction methods should be adopted wherever possible; - regular maintenance of machinery should be undertaken to reduce operational noises. - construction personnel working in high noise level situations should be provided with protective equipment and should not work continuously in such situations for more than 6 hours per day.

Dike Construction: - construction of dikes in urban areas is prohibited between from 10:00 pm to 6:00 am daily; - in areas that are particularly sensitive to noise (e.g. within 200 m of schools and hospitals), structural measures such as sound separation walls should be implemented. Compensation for high noise levels may also be required.

5.3.5.3. RESIDUAL IMPACT

With the implementation of the mitigation measures the residual impacts are localized and relatively short term.

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5.3.6. FLORA

5.3.6.1. POTENTIAL IMPACT

Approximately 106 ha of land will be permanently acquired of which 48% is farmland. There are no primary forests or reports of rare or endangered flora in these areas.

Approximately 83 ha of land will be occupied temporarily during the construction phase. There are no primary forests or reports of rare or endangered flora in these areas. The temporary land occupation will last no longer than the construction period (18 months). As the Subproject area has high rainfall, a good climate and comparatively good soil quality that is favorable for vegetation growth it is anticipated that re-vegetation of spoil areas will not be difficult. Based on experience with similar water resources projects, supported recovery of vegetation on temporarily occupied land normally takes three to five years. Overall, the impact of temporary land occupation on flora is low, localized and medium term in duration.

5.3.6.2. RECOMMENDED MITIGATION MEASURES

As noted previously an FSP will be developed and submitted to the Loudi EPB for approval. If the plan indicates facilities are sited inappropriately and may result in impacts on any identified precious ecological resources then the plan should be modified until Loudi EPB approval is obtained.

Excavated materials should be used as much as possible as fill in the construction in order to reduce the quantities of spoil and the size of the spoil deposition sites. Spoil should only be disposed at sites designated in the FSR.

Compensation vegetation should be planted at all suitable locations. Specifically: - native grasses should be planted along dikes slopes in order to provide slope protection; - all borrow pit areas should be fully re-vegetated with appropriate native species of grass, shrubs or trees in order to replicate local natural vegetation cover; - all spoil disposal sites should be fully re-vegetated with grasses, shrubs or trees in order to replicate local natural vegetation cover; - trees and vegetation to be planted in areas targeted for resettlement.

5.3.6.3. RESIDUAL IMPACT

With the implementation of the mitigation measures the residual impacts from permanent land occupation are small, localized and long-term, and residual impacts from temporary land occupation are small, localized and relatively short term.

5.3.7. FAUNA

5.3.7.1. POTENTIAL IMPACT

As noted above the Subproject will permanently occupy 106 ha of land and temporarily occupy 83 ha. These areas are within an urbanized or semi-urbanized landscape, and do not contain significant areas of animal habitat or any rare or endangered fauna. The only impact will be on a limited area of habitat and feeding grounds for reptiles and rodents.

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5.3.7.2. RECOMMENDED MITIGATION MEASURES

As noted previously an FSP will be developed and submitted to the Loudi EPB for approval. If the plan indicates facilities are sited inappropriately and may result in impacts on any identified precious ecological resources then the plan should be modified until Loudi EPB approval is obtained.

Vegetation on land that is temporarily occupied (e.g. borrow pits, spoil disposal sites, etc) will be replanted, replacing the habitat that is lost.

5.3.7.3. RESIDUAL IMPACT

With the implementation of the mitigation measures and given the limited faunal value of the landscape the residual impacts from permanent land occupation are small and localized.

With the implementation of the mitigation measures and given the limited faunal value of the landscape the residual impacts from temporary land occupation are small and relatively short term.

5.3.8. AQUATIC LIFE

5.3.8.1. POTENTIAL IMPACT

If the project erosion and pollution control measure are implemented properly there will be little or no impacts on aquatic life in the Lianshui and Sunshui from the construction of the dikes and associated works.

Dredging in the Lianshui and Sunshui Rivers will have an impact on the benthic biota in the vicinity. It is understood that dredging activities are already ongoing, that these areas are not considered to be high quality aquatic habitat, and that there are no reports of any rare or endangered aquatic flora and fauna in the vicinity of the sites. The dredging will thus have a localized and moderate impact on aquatic life.

5.3.8.2. RECOMMENDED MITIGATION MEASURES

The amount of dredging is to be minimized. No dredging should take place during fish migratory or spawning seasons.

5.3.8.3. RESIDUAL IMPACT

With the implementation of the mitigation measures and given the limited habitat value of the dredging sites, the residual impacts from dredging are short-term and localized.

5.3.9. PUBLIC SAFETY

5.3.9.1. POTENTIAL IMPACT

The establishment of the worker camps poses public health safety risks through infectious disease propagation if sanitation (sewage and solid waste management) is not appropriate. For

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example, as noted previously, a total of 1,560,000 kg of domestic solid waste will be generated during the construction period. This will be produced over a large area, and if not collected and disposed of appropriately will result in a reduction in overall environmental quality.

5.3.9.2. RECOMMENDED MITIGATION MEASURES

A Health and Safety plan will be developed that will specify the Health and Safety obligations of the contractor.

Health of Workers - Any worker who develops an infectious disease should receive adequate medical care, and should be quarantined during the infectious period. - Any disease out break shall be reported to the relevant health authorities immediately. All instructions issued by the health authorities to deal with the outbreak shall be immediately implemented. - Workers must be provided with protective gear as required by the PRC Labor Law (1994) and relevant Hunan provincial regulations. - The maximum working shift is 8 hours per day. - In high noise conditions a maximum of 6 hours per day only is permitted.

Domestic Rubbish: - Domestic solid waste produced by construction workers must be disposed into waste containers. - Waste containers should be provided at a rate of 1 for every twenty workers. - Collection and disposal of domestic solid waste will be undertaken by the Loudi Health and Sanitation Company. Waste disposal will only be allowed at the Loudi landfill site.

Sewage - Temporary toilets will be provided at a rate of 1 for every twenty workers. - Sewage will be collected as necessary by the Loudi Health and Sanitation Company and treated or discharged to the municipal sewerage system. - Regular cleaning and disinfection should be done so as to avoid breeding of flies and mosquitoes.

5.3.9.3. RESIDUAL IMPACT

With the implementation of appropriate mitigations measures the negative public safety impacts will be minimal. The positive health and safety impacts of the flood protection provided by the Subproject will be significant and long-term.

5.4. OPERATION

5.4.1. HYDROLOGY

5.4.1.1. POTENTIAL IMPACT

An analysis was undertaken of the water surface profile in the Lianshui and Sunshui Rivers with and without the new dikes and other civil works. Based on a review of flood data the 1 in 50 year discharge and water level at the Loudi hydrological station were assessed as 2,760 m3/s at 103.46 m. For Sunshui, the equivalent data at Shian hydrological station is 1,510 m3/s at 102.53

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m. The construction of the dikes is estimated to raise the water levels to 103.64 m and 102.75 m respectively, an increase of 18 cm on the Lianshui and 22 cm on the Sunshui. These level increases are not considered significant, and therefore the operation of the dikes will have no significant effect on the Lianshui or Sunshui water levels or hydrology. However, operation of the dykes and other civil works will lead to a significant reduction in flooding in the Subproject flood protection zones.

As the areas downstream of the city are rural areas with lower flood control standards, construction of the Subproject may slightly increase the risks of flooding the downstream areas, though this impact would likely be very minimal. Due to time and data limitations this risk has not been assessed.

5.4.2. WATER QUALITY

5.4.2.1. POTENTIAL IMPACT

Overall operation of the Subproject will not produce any pollutants and will not bring about any negative impact on the quality of the urban waters. Further, implementation of the Subproject will improve the flood control standards and drainage capacity of Loudi, which will reduce ecological damages and water pollution that occurs during urban flood events.

5.4.3. FLORA AND FAUNA

5.4.3.1. POTENTIAL IMPACT

Operation of the Subproject will not negatively impact flora or fauna. Re-vegetation of temporary sites impacted during the construction phase will take three to five years, so will extend in to the operation phase, but these are not new impacts and have been addressed previously.

Implementation of the Subproject will protect the urban ecological environment, shielding flora and fauna within the protection zone from flood associated damages.

5.4.4. AIR QUALITY

5.4.4.1. POTENTIAL IMPACT

As roads will be constructed alongside the dikes, there may be an increase in dust pollution.

5.4.4.2. RECOMMENDED MITIGATION MEASURES

The roads should be well maintained so as to reduce dust levels.

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5.4.5. TRAFFIC

5.4.5.1. POTENTIAL IMPACT

The Subproject will improve the flood control standard of the city, and provide a positive effect for the security of roads within the flood protection zones. Furthermore, construction of new roads along the dikes will ease the traffic on the city roads and make the city roads safer.

5.4.6. PUBLIC SAFETY

5.4.6.1. POTENTIAL IMPACT

Flood protection provided by the Subproject will have a significant and long term positive impact on the health and safety of Loudi’s citizens by reducing flooding and associated pollution and diseases that can occur during floods.

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6. PUBLIC CONSULTATION

6.1. BENEFICIARY IDENTIFICATION

The major beneficiaries of the proposed Loudi Flood Control Subproject will include urban residents, rural village residents, enterprises, government institutions, and businesses. There are an estimated 30,034 households and 86,310 persons in the flood protection zone who will directly benefit.

6.2. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ACTIVITIES

Table 6-1 summarizes the public consultation activities that have been undertaken.

During the social surveys small group discussions were held with groups of individuals in select communities. A range of potential benefits to be brought by the Subproject were identified by the meeting participants, summarized in Table 6-2. A range of potential negative impacts were also identified. Of these land acquisition, demolition of houses and relocation of people were considered the major negative impacts of the Subproject. Other potential negative impacts identified included (1) potential impacts on access roads, docks, and drainage facilities during project construction; (2) noise and dust impacts during project construction; and (3) corruption during awarding contracts. However, as most participants did not have a clear idea about the Subproject and its related potential land acquisition and resettlement impact they were unable to express their concerns with regard to potential negative impacts. It is recommended that during next stage of Subproject preparation more meaningful participation and disclosure should be carried out in order to improve basic understanding of the Subproject and address concerns raised by the Subproject affected people.

Overall, all focus groups, including both urban and rural populations, expressed positive attitudes towards the proposed Subproject. Of the 48 individuals interviewed only 1 opposed the Subproject because he felt the acquisition of land used for growing vegetables will impact his family seriously.

Additional information on the public consultation process is presented in the Social and Poverty Assessment for the Loudi Subproject.

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TABLE 6-1: PUBLIC CONSULTATION AND PARTICIPATION

Agencies Purpose(s) Date Main Issues Discussed No. People Consulted Provincial Poverty 2 - Update introduction of proposed Nov. 8, - Role of the proposed Project in Poverty Alleviation and Project, 2004 Alleviation Development office. - Generate comments to maximize the - Poverty Reduction Policies Poverty Alleviation impact - Existing Poverty Alleviation project and its - Collecting Poverty Data of Hunan impacts Province and project Counties - Comments and suggestions to the proposed Project to maximize its Poverty Alleviation impact 1 Village and 2 36 - Introducing progress and alignment Nov. 23- - Length and wide of the proposed dikes residential Committee of the proposed Project. Exploring 25, 2004 - Frequency of floods and damage caused in Louxing District of socioeconomic factors at the village - Impacts of the proposed subproject Loudi subproject. 6 level. Generating comments and - Land saving and compensation focus group suggestions on the proposed project - Location of resettlement discussions were and local community improvement - Compensation issues conducted, include 3 priorities. Exploring measures to - Income source and their implication in women’s groups. maximize the positive impact of the relation to proposed Project Project and minimize the negative - Comments and suggestions to maximize impacts. the positive impact and minimize the negative impacts - Priority needs including road development 1 village and 2 21 - Consulting poor and non-poor’s Nov. 23- - Frequency of floods and damage caused residential perspective of the project and their 25, 2004 - Impacts of the proposed subproject committees in coping strategy respectively - Land saving and compensation Louxing District of - Location of resettlement Loudi subproject. 7 - Compensation issues household surveys - Income source and their implication in were conducted in relation to proposed Project each - Comments and suggestions to maximize village/residential the positive impact and minimize the committee. negative impacts - Priority needs including road development Business people 2 - Introducing proposed subproject - Housing demolish and its compensation interview - Generate altitude towards the Nov. 23- rate proposed program 25, 2004 - Benefit of the project - Frequency of floods and impact on their business - Attitude towards the proposed project - Comments on the project schedule Enterprise interview- 1 - Introducing proposed subproject; Nov. 25, - Land acquisition and compensation rate Loudi Leather factory Assess possible impact of the 2004 - Damage and loses caused by flood proposed project to the enterprise - Positive and negative impact of the - Generate comments and proposed project, include land value suggestions increase of the factory. - Comments on project schedule Public affairs bureau, 3 - Introducing proposed subproject, Nov. 25, - Policies and programs of urban poverty labor and social collecting data of urban poverty and 2004 reduction security bureau existing programs, generate - Training of lay-off workers comments and suggestions - Participation of poor in project construction - Loudi LPMO 8 - Update the TA progress, Nov. 23, - Protected area definition - Collect project area and protection 2004 - population in project area and protected area information area - Generate comments and - Total project area and protected area suggestions - Poverty situation in project area and protected area - Repayment plan and funds generation plan - Flood situation in recent years Poverty Alleviation 3 - Introduce the proposed project, Nov. 25, - provide job opportunity to poor during Office of Louxing collect poverty situation data and 2004 construction District information of the existing poverty - possibility of the pro-poor compensation rate reduction program - insurance for the construction labor - Comments and suggestions

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Agencies Purpose(s) Date Main Issues Discussed No. People Consulted Loudi City Statistical 2 - Introduce the proposed project, Nov. 25, - Benefit groups of the project Bureau collect socio-economic data, 2004 - Time table of the project generate comments and - Socio-economic data availability suggestions Loudi City Agricultural 2 - Introduce the proposed project, Nov. 23, - Rural poverty definition Economic Bureau collecting population and income 2004 - Importance of the project to different data of rural village township/town Loudi Civil Affairs 2 - Introduce the proposed program, Nov. 25, - Limited budget for support urban poverty Bureau collection data of urban poverty 2004 reduction populations and existing anti-poverty - Recruit the urban poor as unskilled labor of programs, Generate comments to the project maximize the poverty impact of the - Insurance of the construction labor project - Compensation for house relocation Loudi All Women’s 3 - Introduce the proposed project, Nov. 25, - Recruit female labors Federation generate comments and 2004 - Time table of the proposed project suggestions - Training needs of women - Collecting data of existing programs for helping women’s development Selected Township 2 - Introduce the proposed programs, Nov. 23- - Positive and negative Impact of the project Governments collect socio-economic data of the 24 - Compensation rate of land and house township and protected villages, generate comments and suggestions

TABLE 6-2: POSITIVE IMPACTS IDENTIFIED BY DIFFERENT GROUPS OF BENEFICIARIES

Groups Positive Impacts to be Brought by Loudi Subproject

- protection of houses, furniture, appliance and asset Urban Areas Women - prolong life of houses and furniture Group - Protect normal life and order - Promote infrastructure construction of city - Easy to accumulate saving, make new investment and build new houses Urban Areas male - Attract outside investors and develop local economy Group - Provide opportunities to work - Feel safe to live along the river - Reduce work load on flood protection each year Officials of selected - Protect life and asset residential committees - Reduce work loan on flood control and relief efforts and villages. - Improve environment and sanitation conditions along the river - Reduce immunization cost - Promote introduction of outside investment - Improve drainage system Male vegetable farmers - Protect farmland and vegetables - Improve environment and sanitation condition - Improve transportation condition Female vegetable - Protection of houses, furniture, appliance and asset farmers - Protect vegetable field - Feel safe to sleep - Improve environment and transportation condition - More convenient to do some washing in the river Small business persons - Reduce loss of goods - Improve environment and sanitation condition - Attract investment and promote development of local economy - Create opportunities for contractors and construction materials Factory (Linlin Leather - Promote attraction of outside investment Factory) - Increase land value - Create development opportunities - Improve drainage system Sources: Field visit and small group discussions.

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7 ENVIRONMENTAL MANAGEMENT PLAN

7.1 EMP DEVELOPMENT AND PURPOSE

The objective of an EMP is to outline the mitigation, monitoring and institutional measures to be taken during project implementation and operation, and the actions needed to implement these measures. The EMP provides the crucial link between the mitigation measures described in the subproject and Project-wide IEEs and ensuring that these measures are effectively implemented.

In accordance with the environmental requirements of the ADB a separate, stand-alone Consolidated (project-wide) Environmental Management Plan (EMP) has been prepared. The objective of the Consolidated EMP is to:

(i) provide an overview of the predicted environmental impacts of the proposed Project;

(ii) provide an overview of the recommended mitigation measures;

(iii) present an Environmental Assessment Framework (EAF) for the environmental evaluation of the remaining 28 non-core subprojects;

(iv) present an environmental compliance and ambient monitoring program;

(v) facilitate institutional arrangements for: a. the environmental evaluation of the remaining 28 Subprojects; b. the implementation of the recommended environmental mitigation measures; c. the implementation of the recommended environmental compliance and ambient monitoring programs, including reporting requirements; and, d. ensuring compliance with the environmental requirements of the People’s Republic of China (PRC) and the Asian Development Bank (ADB);

(vi) present the estimated Consolidated EMP budget.

Although the Consolidated EMP is a stand-alone document, it is briefly described in this chapter.

7.2 ENVIRONMENTAL MITIGATIONS

The mitigations to be implemented are presented in Chapter 5 of this IEE report and are summarized in the Consolidated EMP.

7.3 ENVIRONMENTAL MONITORING

Environmental monitoring will be undertaken to:

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(i) provide feedback on the extent and severity of the environmental impacts against the predicted impacts;

(ii) ensure that mitigations are being appropriately implemented; and,

(iii) assess the overall effectiveness of the project environmental protection measures.

Two types of environmental monitoring will be undertaken: compliance and inspection monitoring, and ambient monitoring.

7.3.1 COMPLIANCE MONITORING

Compliance monitoring is primarily aimed at determining if the contractor is meeting the contract requirements in terms of mitigation implementation. As per Chinese normal practice two types of compliance monitoring will be undertaken: mitigation compliance monitoring, and mitigation construction quality monitoring.

Mitigation compliance monitoring will be undertaken to ensure that the Contactor is implementing the mitigations measures in compliance with their contractual requirements and with the environmental regulations and standards of the PRC. The mitigation compliance inspections will be carried out by Environmental Field Inspectors (EFIs) employed by suitably qualified and accredited inspection companies hired by the LPMOs. The Consolidated EMP presents a generic subproject compliance monitoring program. This should be finalized and incorporated in the legal agreement between the LPMOs and the inspection companies.

Mitigation construction quality monitoring will be undertaken as part of the overall construction quality monitoring process, as described in the Project Final Report.

7.3.2 AMBIENT MONITORING

Ambient monitoring supports compliance monitoring through assessing either the quality or extent of pollutant generation (effluent) or the quality of the receiving environment (air, water, noise). The objective of ambient monitoring is to provide feedback on the extent and severity of the environmental impacts against the predicted impacts; assess the overall effectiveness of the project environmental protection measures; and ensure that relevant environmental standards of the PRC are being maintained. Ambient motoring will be carried out by the subproject EPBs, either through their environmental monitoring centers or through their own environmental motoring companies. The Consolidated EMP presents a generic subproject ambient monitoring program. This should be finalized and incorporated in the monitoring agreement between the LPMOs and the EPBs.

7.4 INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES

The EMP presents institutional arrangements and responsibilities for the implementation of the measure and activities presented in the IEEs and EMP. It specifies the roles and responsibilities of the PPMO and LPMOs, county/municipal EPBs, and other relevant parties. The EMP also presents measures for enforcing mitigation implementation and actions to be taken if non- compliance occurs. Section 1.3 of this report presents a summary of the Project institutional arrangements.

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7.5 ENVIRONMENTAL SPECIFICATIONS FOR CONTRACTOR(S)

Environmental specifications for Subproject contractors are presented in the EMP. These specifications should be included in the contractors’ legal documents, and include:

- Section A: Environmental Management

- Section B: Health and Safety

Each section addresses the following:

Sub-Section 1: description of the Contractor's obligations with regards to those aspects covered by the section.

Sub-Section 2: description of indicators that will be monitored for payment.

The Consolidated EMP also includes recommendations for payment procedures that will clearly oblige the Contractor to fulfill their environmental obligations.

7.6 CAPACITY BUILDING REQUIREMENTS

The EMP designates the environmental capacity building and training activities that will be undertaken to support the Project environmental management.

7.7 BUDGET FOR EMP IMPLEMENTATION

Table 7-1 presents the EMP budget for the Loudi Subproject.

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TABLE 7-1: EMP BUDGET, LOUDI SUBPROJECT

Items Cost (104 CNY) Lead Agency (under Description 1 2 3 4 Total PPMO Coordination) Environmental Mitigation

Measures - Fee for provision of temporary toilets and sewage - Loudi Health and collection and disposal by Health and Sanitation Water Pollution Control 2.64 6.16 6.16 2.64 17.6 Sanitation Department Department - Contractor - Collection and disposal of construction wastewater - Fee for provision of domestic garbage cans, temporary - Loudi Health and garbage stations, and collection, and disposal by the Solid Waste Control 2.03 4.74 4.74 2.03 13.54 Sanitation Department local Health and Sanitation Company - Contractor - Construction waste disposal - Road and construction site dust control (water spraying, Air Pollution Control 1.67 3.89 3.89 1.67 11.12 - Contractor road paving, equipment hiring and rental, etc) - Sound control measures (fences and barriers) Noise Control 0.32 0.64 0.64 0.40 2.00 - Contractor - May include some compensation for schools and hospitals - Provision of medical treatment and facilities for workers Public Health Protection 2.79 6.51 6.51 2.79 18.60 - Contractor - Sanitization of toilet, cooking and other areas - Warning signs Public Safety 0.40 1.00 1.00 0.60 3.00 - Contractor - Safety measures - Monitoring Station of - Monitoring equipment Environmental Monitoring 4.05 9.45 9.45 4.05 27.0 local Environmental - Air, water and noise ambient monitoring Protection Bureau Administration, Compliance

Inspection, Capacity Building - Ecological and other surveys - PPMO Environmental Mitigation Design 7.00 0.50 7.50 Consultant - Detailed mitigation design and planning - Design Institute8 - Based on 8% of environmental mitigations and monitoring - LPMO and EPB management costs Administration and 0.57 1.33 1.33 0.57 3.80 - LPMO and EPB - Based on 4% of environmental mitigations and Management monitoring - Authorized - Environmental compliance inspections by qualified environmental Site Inspections 2.94 6.86 6.86 2.94 19.60 company compliance inspection - 2 inspectors, 35,000 RMB/year/inspector company

8 This will most likely be the same institute that prepared the original Subproject feasibility study that was reviewed under the TA process.

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Items Cost (104 CNY) Lead Agency (under Description 1 2 3 4 Total PPMO Coordination) - Authorized - Environmental mitigation construction quality construction inspections by qualified company Construction Inspections 0.07 0.18 0.18 0.07 0.50 compliance inspection - Based on 0.25% of environmental mitigations and company monitoring. - Training of LPMO staff, site inspection company staff, Training and Capacity 1.00 3.60 3.60 2.40 10.60 - PPMO etc. Building - 10 persons trained annually for five years Soil and Erosion Control

Program - Borrow pits and construction site structural erosion control measures, including erosion control walls, Structural Erosion Control 24.16 56.37 56.37 24.16 161.06 - Contractor wastewater drainage ditches, temporary containment ponds, bioswales, etc. - Borrow pit and spoil pit revegetation Revegetation 20.30 47.30 47.30 20.3 135.2 - Contractor - Budget for dike vegetation has been included in main project budget; Resettlement 0.42 1.00 1.00 0.42 2.84 - Contractor - Resettlement area tree and vegetation planting - Borrow pits and construction site erosion control Temporary Erosion Control 4.54 10.60 10.60 4.54 30.28 - Contractor measures, such as erosion fences. Administration and 6.57 15.33 15.33 6.57 43.80 - LPMO and Contractor - Design, supervision, QA/QC, etc Management Government Revegetation - Contractor to pay to 25.46 59.40 59.40 25.46 169.72 - Fee set by Hunan Provincial Government Fee local government9 TOTAL 106.93 234.86 234.36 101.61 677.76 - Equivalent to 819,541 USD

9 The fees rate is set by the Hunan Provincial Government. The fee is to be paid by the Subproject contractor to the local (county or municipal) Water Resource Department. There appears to be confusion on whether this payment is required on projects implemented through the local Water Resource Departments, as this becomes an internal transfer of funds. This issue needs to be resolved.

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8 FINDINGS AND RECOMMENDATIONS

The Loudi City Subproject will result in both socio-economic and environmental impacts.

The socio-economic impacts are primarily related to the construction-phase resettlement, which will affect a total of 507 households and 1,569 persons. On average each affected person will lose about 0.03 ha of farmland, which represents 65% loss of their current farmland. The remaining 52% is orchard, housing plots and wasteland as well as state owned urban land. Approximately 83 ha of land will be occupied temporarily during the construction phase, some of which may also be farmland. In addition, a total of 51,213 m2 of buildings will be demolished, including 30,723 m2 of residential houses and 20,490 m2 of non-residential structures. The demolition will relocate 151 households and 488 persons and affect 18 enterprises and 1,978 employees.

A Loudi Subproject Social/Poverty Impact Assessment (SPIA) and a Resettlement Plan (RP) have been prepared in accordance with the standards and requirements of the PRC Land Administration Law (1998) and the associated Hunan Provincial Implementation Decree (2000), as well as the ADB’s Policy on Involuntary Resettlement. All recommendations for compensation and resettlement presented in the SPIA and RP should be fully implemented. If done appropriately the relocation will provide an opportunity to improve housing conditions for the affected persons.

Construction of the project is not anticipated to have any significant terrestrial ecological impacts as the project area is generally a heavily modified urbanized/rural farmland mosaic and no sensitive terrestrial resources or rare and endangered flora and fauna have been identified in the Subproject Environmental Impact Area (SEIA). Dike construction will not affect hydrology of the Lianshui or Sunshui Rivers. Erosion from construction sites and source rock and soil piles as well as other construction pollution sources may reduce water quality in the Lianshui and Sunshui, as will dredging. Dredging in the Sunshui is of particular concern as the city is dependent upon the river for its water supply. Dredging will have a significant short term impact on water quality as it will involve disturbance of the riverbed sediment, causing a significant albeit temporary increase in the concentration of suspended solids (SS), some of which may be contaminated with industrial pollutants. The dredging will need to be closely coordinated with the plant management to ensure that the water supply is not affected. Dredging in the Lianshui will also have to be implemented carefully to minimize impacts. Other potential impacts include solid waste, noise pollution issues during construction especially in the urban areas, and protection of historic features. Overall however, environmental impacts are localized and temporary, and can be adequately mitigated.

Operation of the Loudi dikes will have no significant negative impacts on the Lianshui River water levels, water quality, or on terrestrial or aquatic flora and fauna.

The main impacts that require special measures are associated with the construction phase, including:

- soil erosion and runoff from exposed earthwork sites;

- the rehabilitation of borrow areas and spoil sites;

- construction wastewater and domestic wastewater from construction camps;

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- construction solid wastes and domestic waste from construction camps;

- air pollution from traffic and construction site dust;

- noise pollution from construction activities and heavy machinery;

- dredging in the Lianshui and in particular in the Sunshui; and,

- public safety.

A comprehensive program of mitigation measures, environmental motoring and compliance inspections has been designed to address these issues. The estimated budget for environmental protection and monitoring during the construction stage is US$ 819,541 (CNY 6,777,600). If the mitigations are appropriately implemented the project should have minimal negative impacts and should result in overwhelming positive benefits brought about by the flood protection it will provide.

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9 CONCLUSION

The Loudi City Subproject will improve flood protection in the Loudi urban area through the construction of dikes, drainage works and river dredging.

The most significant socio-economic impacts are primarily related to the construction-phase resettlement. All recommendations for compensation and resettlement presented in the SPIA and RP should be fully implemented. If done appropriately the relocation will provide an opportunity to improve housing conditions for the affected persons.

Potential environmental impacts are associated with construction phase solid and liquid wastes, noise and air pollution and dredging. Negative environmental impacts are generally localized, short-term, and can be fully mitigated or minimized.

A range of mitigation measures has been recommended to address the environmental issues raised in this report. The mitigations relate to the rehabilitation of borrow areas, control of soil erosion and runoff from earthworks, prevention of water, air and solid waste pollution, reduction of impacts from dredging, noise reduction and public safety. The estimated budget for environmental protection and monitoring is US$ 819,541 (CNY 6,777,600).

A separate and stand alone environmental management plan (EMP) has been developed which guides the implementation of the recommended mitigation measures; presents environmental compliance and ambient monitoring programs; facilitates institutional arrangements for the implementation of mitigation measures and the environmental monitoring; and, ensures compliance with the environmental requirements of the People’s Republic of China (PRC) and the Asian Development Bank (ADB).

With the implementation of the recommended mitigation and monitoring measures the Subproject is not expected to have any significant negative environmental impacts. Overall the flood protection provided by the Subproject will significantly enhancing the safety and quality of life of the residents living and working in the protection zones.

Given the limited environmental impacts identified in this IEE the Subproject’s tentative designation as Category B under the ADB’s environmental guidelines has been confirmed. As no significant residual environmental impacts are expected, and all minor impacts predicted during construction and operation can be fully mitigated, no additional studies or EIA is required.

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APPENDIX I

LOUDI SUBPROJECT SITE PHOTOS

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Near the upstream starting point of the dike on the Starting point of the dike on the right bank of the left bank of Lianshui River, taken from Laingang Lianshui River, taken from the Liangang Second 1st Bridge. This area will require resettlement. Bridge.

Right bank of Lianshui River near Loudi Ongoing road and dike construction, left bank of hydrological station. Some dike work has begun. Lianshui River. Note lack of erosion controls.

Ongoing road and dike construction, left bank of Lianyuan Iron and Steel Works, left bank of Lianshui River. Lianshui River at Loudi hydrological station. Few pollution controls were noted, and downstream river sediments are likely polluted.

PEOPLE’S REPUBLIC OF HUNAN FLOOD MANAGEMENT PROJECT JAN 2005 CHINA APPENDIX I ASIAN DEVELOPMENT BANK PLATE N°1 LOUDI SITE PHOTOS

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Area for proposed dredging of Lianshui River, taken Right bank of Lianshui River taken from the left bank from the Liangang 2nd Bridge looking downstream. upstream of Loudi bridge, showing area for intensive This area is downstream of the steel works. resettlement.

Kaitian Temple, a provincially protected historical site Area for proposed dredging, 100-200 m downstream on the right bank of Lianshui, approximately 4 km of the Kaitian Temple. This area is already actively downstream of the Loudi Bridge. The temple is less dredged for construction materials. than 20 m from the river bank.

Near confluence of Qinfeng and Lianshui Rivers. Near confluence of Qinfeng and Lianshui Rivers. This existing dike will be reinforced. Existing dikes in this area will be reinforced.

PEOPLE’S REPUBLIC OF CHINA HUNAN FLOOD MANAGEMENT PROJECT JAN 2005 ASIAN DEVELOPMENT BANK APPENDIX I PLATE N°2 LOUDI SITE PHOTOS

SOGREAH - July 2005 PAGE 67 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E3): LOUDI CITY INITIAL ENVIRONMENTAL EXAMINATION

Loudi 2nd water treatment plant intake, left bank of Starting point of the proposed dike on the left bank of Sunshui River. the Sunshui River. Looking downstream from Shibu Bridge.

Luoziao existing rock quarry, located 6-7 km Meiziwan existing clay borrow pit, located 1-2 km northwest of the Lianshui River. north of the Lianshui River.

Existing commercial sand dredging operation, 100 m downstream of the Kaitian Temple.

PEOPLE’S REPUBLIC OF CHINA HUNAN FLOOD MANAGEMENT PROJECT JAN 2005 ASIAN DEVELOPMENT BANK APPENDIX I PLATE N°3 LOUDI SITE PHOTOS

SOGREAH - July 2005 PAGE 68 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E3): LOUDI CITY INITIAL ENVIRONMENTAL EXAMINATION

APPENDIX II

LOUDI SUBPROJECT SITE VISITS10

Site Visit I

Persons Met Mr. Li Mengxian, Director, Loudi City Water Resources Bureau Mr. Yangwei, Vice Director, Loudi City Water Resources Bureau Mr. Zhao Heming, Administrator, Loudi City Water Resources Bureau Mr. Qiu Jiandong, Engineer, Loudi City Water Resources Bureau Mr. Wu Weixiong, Engineer, Loudi City Water Resources Bureau

TA Participants Mr. Zhu Jianrong, Vice Director, Project Management Office, Hunan Provincial Water Resources Department. Mr. Christian Odeyer, Hydrological Expert Mr. Ashley J. Bansgrove, Environmental Specialist Ms. Dr. FuChun, Environmental Specialist Mr. Zhong Hua, Hunan Hydro and Power Design Institute Ms. Yanghong, TA Translator.

Period 13/11/2004

Locations Visited Loudi City – Loudi Hydrological Station – Fujiawang sluice gates

Site Visit II

Persons Met Mr. Yangwei, Vice Director, Loudi City Water Resources Bureau Mr. Luo Xiong, Engineer, Loudi City Water Resources Bureau Mr. Qiu Jiandong, Engineer, Loudi City Water Resources Bureau Mr. Wu Weixiong, Loudi City Water Resources Bureau

Participants Mr. Zhong Hua, Engineer, Hunan Hydro and Power Design Institute

Period 20/01/2005

10 Does not include site visits and surveys undertaken by the TA social assessment team.

SOGREAH - July 2005 PAGE 69 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E3): LOUDI CITY INITIAL ENVIRONMENTAL EXAMINATION

Locations Visited Loudi City – Intake of the first waterworks of Loudi in Sunshui River – Starting point of the Sunshui River dike – Starting point of the Lianshui River dike – Area by the Loudi bridge on Lianshui river where there is resettlement – Two river sites where dredging will be implemented – Kaitian Temple which is a site of historical value – One of the rock borrow pits – One of the earth borrow pits – One of the sand and gravel borrow pits

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