ECCt Public Disclosure Authorized Appendix II

ENVIRONMENTALIMPACT STATEMENT FOR THE QINBA MOUNTAINS POVERTYREDUCTION PROJECT

SICHUANPROVINCE Public Disclosure Authorized Public Disclosure Authorized

Public Disclosure Authorized Research Institute of Environmental Protection September1996, China QBPRP-Environrnenta ImpactStatment_

OverallProject Marnagenent: Sichuan Project ManagementOffice Under China Qnba Pevrty Ructiom Project Supportedby the WoddBank

Excutivedby: SichuanResearch Inttute of EnvironmentalProtection

The Levelof Certficateof Environental ImpactAsseasment: * Level-A-, No. 0924, Issued by State EnvirornmentalProtection Agency

Person in Charge. r.Huag Shi-da & Mr. Yang yu-yi

Prepaed by: Mr. Huangshi-da, SeniorEngineer Mr. YangYu-yi, SeniorEngineer Ms. Luo Meng-hua, Senior Engineer Mr. Qianiun. Engtneer MAr.Ren Yong, Engineer MW.Zhang Tie-hu, senior Engineer

0 Personsin Charg of PilotETA Subprojects: 1). CangxiFrvlTvea Procs*s1ngFactory: Mr. Qaxjun ,Enginear 2). Jian JinbaoRiFe Nvodle Factyy Mr.Cheng Xipmg, SMor Engner 3).TechricalRenovation of YilongYellow Rioe Winery: W. Dern XNnhua,Senior Enieer * 4). CangKiShale Brickyard: Ms.Zang in ,Engine 5). TechncalRenovaion of Pigslaghtering producon Lineof WangoagPork Ccmplex: Mr. RenYong, Engineer 6). 3,4,5-TynmethoxyBenzaldehyde Production in TongoangFore(st Product& chemcfA Plant: Mr. Ye Horg, Seior Engineer 7.%Jialin CarburetPlant. Ms. Liang Ting,Engineer * 8). Xt8XuanhanFwfucPlwant:Mr.Ding Houchan,SeniorEngineer 9).Pilot VillagePlaning ofLutopso Village, XuanAan Coity: Ms.LvoMengha, SeniorEngineer I 0 Pilot VillagePlannin of Shegmiaoya Village,: Ms. ChenYixuani, Senior Engineer

2 .

China QBPRP--EnvironmentalImpact Statement

Table of Contelt

II ProjeftBack-o--nd3 ------6 1.2 Basis for the Report ------7 1.3 The Scope, Key point, Standards and Protect Goals of EAA -- 8 k1.4 Assessment Methods and Techniques ------I1 1.5 Brief htroetuction ofthe Assessment Unit --- iI

2. Project Characteristics ------12 2.1 Lnvestmentframnework ------I 2 2.2 Project Objectives ------22 -2.3 DevelopmentStrategy and Pla"nung ------13 2A4 Descriptionsof the Project ------i4 ----- 2.5 Years Ananigement------20 2.6 Cost Estimate ------2-T0

0* 3. Environment Condition and B ackground ------22 3.1 Natural Ciondition(geographic, land,climatic,water resource, mineral resources) ------22 3.2 EcologicCalEnvironment ------23 3.3 Environmental Quality (air, surface water, noise) ------24 * 3.4 Social Econcmic Profile (population, labor, infrastructure, education, health, extension service, agricultural, rural enterprise) ------26 3.5 The Quality ofliving ------28

4. Environmental Irnpact and the Mitigating Measures. ------28

4.1 Identification of influential factors and Assessment Category .- 28 4.2 EIAAnalysis of Rural Enterprises ------32 4.2.1 The Determninationof the Pilot ELA Subprojects. -_--A32 4.2.2 EnvironmentalImpact Assessmnentof Rural Enterprises ------32------i 4.2.3 Conclusion of FsnvironmentalInpact Assessment of Rural Enterqprise---32 0.r 4.2.4 ImportantMeIeasures for Pollution ------3 4.3 Environmental Impact Analysis of land and Farmer Household Development and Rural Infrastructure Construction --- 34 4.3.1 Determination of the Environmental Assessment for Pilot villages -- 34 4.3.2 EnvironmentalImpact Analysis of the component of La3ndancl * Farner development- - - 35 4.3.2.1 Impact on Soil Erosion 4.3.2.2 Impact of Chemical Pesticide Application on Environment 43.2.3 The Impact of Chemical Fertilizer Application on Envirorunent 4.3.2.4 The Impact of Plastic Mulch for Agriculture on Environment 4.4 Risk Analysi ------40

3 .

China QBPRP--Environmental Impact Statement * 5. CaseStudy - 41 5.1 Case One:3,4,5-Trimethoxy Benzaldehyde Production in Ton&jiangChemical Plant of Forest Products - ---- 41 5.1.1 TechnicalProcessing 5.1.2 PollutantDischarge and its Control * 5.13 Predictionof the impacton EcologicalEnvironennt 5.1.4 AccidentAnalysis 5.1.5 Conclusionend Suggestions 5.2 CaseTwo: Xuanhar furfuralplant ------47 5.2.1 Key TechnicalProcessing: * 5.2.2 Analysisof PollutantDischarge 5.2.3 Predictionof the Inpact of PollutantDischarge 5.2.4 Cotrol Measuresfor PollutantDischarge 5.2.5 Conclusion.and Suggestion

6. Analysisof EnvironmentalLost and Benefit ------52

7. EnvironmentalManagement Plan And Enviromental MonitoringAnd Control Plan ------2 7.1 EnvironmentalManagement Plan 7.2 EnvironmentalMonitoring 7.3 EnvironmenitalMonitoring and Assessmentin the Proces of ProjectImnlementation 7.4 BudgetaryEstimate

8.0 Public Participation------52

* 9.0 Conclusion ------653------*-

Appendix: AppendixI :Documentfrom Environmenat Assessment Center UnderStat EnvironmentProtect Agency'`he Outline of EnvironmentalInpact Asesment for the SichuanQBPRP' * Appendix2:Document from NationalEnvironmentProtect.Agency(1996, No. 146of EnvironmentMonitoring) "The GrantingLetter to The SichuanAssessment Programof EnvironmentImpact of QBPRPH Appendix3:List of Expert Membersof SichuanEnvironment Impact Assessmnent Groupfor Q13PRP Appendix4: TheEnvironment lmpact Statements(EIS)of Pilot 'Sub-project: 1). EIS of Cagi Fruit/TeaProcessing Factory; 2). EIS of halin Jinbao Rice NoodleFactory, 3).EISof TechtnicalRenovation of YilongYellow Rice Wmiery; 4). EIS of CanWdShale Brickyard; 5). EIS of TechnicalRenovation of PigSlaughtering Production Line of WangcangPork Complex; 6). EIS of 3,4,5-TrimethoxyBenzaldehyde Production in TongiangForest ProductS ChemicalPlant; 7). EIS of Jialn Carburet Plant; 8). EIS of Xuahan FurfurolPlant:; 9). EIS of Pilot VillagePlanning of Luopo Village,,, 10). EIS of .PilotVillage Planning of Shengniaoya Village, JialingDistri3t;

4 China QBPRP-Environmental Impact Statement

. Tables: Table 1-I Components And Cost Table 2-1. The Working Plan for Income and Grain Objectivus Table 2-2: Processing Enterprises of Rural Enterpris;e Component * Table 2-3: Dischalge Estinate of Main Pollutants of Rurnl Enterprises (Sichuan QBPRP) Table 2-4: Unit Investment Estimate of the Subproject Table 3-1 The Land Resources of the Project Townships Table 3-2: The Meteorological Data of the Sichuan Project Area Table 3-3: The Monitoring Result for SOz, N10x and TSP in Project Area Table 3-4: The Monitoring Result of Surface Water Quality of Some Rivers * Table 3-5. Monitoring Result for Noise of Some Cities Table 4-1 Environmental Influence Factors and EIA Category Table 4-2: The Analysis of the Main Environmental Impact of the Rural Enterprises Table 4-3: Envirormental Impact Assessment of Pilot EIA Rural Erterprises in Sichuan ? Table 4-4: Envirorunental Impact Analysis of Component of Laid and Farner Development Table 4-5: Enviroiunental Impact Analysis of Pilot Village Planning I Case I Village of Sichuan Mountair Area ) Table 4-6: Environmental Impact Analysis of Pilot Village Planing ( Case 2: Vilage of Sichuan Hilly Area ) Table 5-1: Predidcon of the ipact of the Wastewater on, Zhouhe River Table 5-2: NoisePrediction of Xuanhan furiural plant Table7-1: EnvioromentalMonitoring Plan and Budgeta Estimatefor Pilot EIA Subprojectsof Rural Enterprises Table 7-2: EnviromnentalMonitoring Plan and Budgeta"rEstimte fbr PflotFIA Subprojectsof the Componentof the Land & Farmer Developnent * Table7-3:Budgetary Estinate of EnviromnentalMonitoring and Assessment of Componentof Rural Enterprises, Land and Farmer Development

Figures: Figure I-1:Map of Province Figure 2-1: Distribution of Rural Enterpnses * Figure2-2: Ten-aceand Micro Irigation Figure 5-1: Flowsheet of Trimethoxy Benzene Fonmhydrazide Figure 5-2: Flowsheet of 3,4,5 Trimethoxy Benzaidelhyde Figure 5-3: Flowsheet of the Treatment Process (Tonijiang Checmical Plant of Forest Products); Figure 5-4: FlIcwsheetof Furfural Production Figure 7-1. The C)peration Flowsheet Of Environmer tal Management:

.

0 :5 .

ChinaQBPRP--Environmental Impact Statement

0

1. Preface

1.1 ProjectBackground The total amount of investmentof SichuanProject of The China Qinba MountainsArea * PovertyReduction Project Supported by the World Bank (Sichuan QBPRP) is 1,494,000,000 RMB. Yuan, of which,the loan of the World Bankis 747,000,1000RMI yuan (or 90,000,000USD). The aim of the project is to reduce the poverty.It will support 12 poor counties and district, coveringthe land of 73,501 7 ha with the populationof 1,117,664.The Wet group are poorest farmerhouseholds living in the poorestarea of the poor counties.The implemetion of this project * will benefit to solve the food and clothing problem of poor famers. The project will take an agretigative approch with multi nput The basic executive ut of the project are special poor villagesof the project area.The7 comnponentsof the project are "Land and FErmerDevelopment", -Rural Infrastructure", "Rural Entrprises Development", "Labor Mobility", "Rural Micro Credit7, "InstitutionBuilding" '"Project& PovertyMonitoin". The implemenitationof the project plays a citical role in fufilling "The Province7-118 PovertyReduction Plan". It will have remrkable economicand socialbenefit. In accordancewith the EnviromnentalProtection Law of the people's Republicof China and Regulations relating to environmentalmanagement of construcion projects, enrusted by The Project * ManagementOffice of Sichuan Provnce(Province PMO), Sichuan nstituteof Environmental Protection(SIEP) undertakesthe task of EnvironmentalInpact Assernment(ETA) of the Sichuan QBPRP. In the light of the regulationsrelating to environmentalprotection of our country, and requirementof environmnentalprotection fron the WorldBank , SichuanIhstitute of Environmertal protection studies a great number of the basic material concernig this project and combines the * original material of the pioject area. We also make the on-the -spot survey, consulted with the provincialexperts and identifiedthe ELAtypes of the subproject. Afterdoing a great amountof work, SIEP draws up "The Program of Environmental Impact Assessmnentfor iheSichuan QBPRP". It has gone throughthe exammationof EnvironmentalProtection Bureau of Provinceand the evaluationof EnvirormentalEngieering CenterunderThe State EnvironmentalProtection Agency.

Apil, 1996, the technicalmission for the QBPRP, headed by Mr. Alen Piazza, cameto Sichuan to check the work. Mr. Zhang Chong-hua,the official in charge of the envroment protection orgaized the examinton and discussion upon "The Prognun of Environmental Impact * Assessmentfor the SichuanQBPRP". He also gave a demandon makingEIA Statenent of the 10 Pilot EIA subprojectsselected from 68 subprojectsof the componentof " Rural Enterprises"and "Landand Farmer Development" and on overallreport

This report is drawn up basing upon "The Program of vironmentalImpact Assessment for .

China QBPRP-EnvironmentalImpact Statment the SichuanQBPRP", the opwnonsof the State EnvironmentalPlrotectoni Aency and Memorandum of the World Bank TechnologyMission. The Statementof Pilot EIA sub projectshows more detailed envionmentalimpact of the projectand mitigton measures. After taking survey on-the-spot,studying materials, analysis of data,,public interiew and consultationwith exprs, and hard work of SIEP, the lilA report of this project are shiowyou here. * We are heartily hankfulto the ProvincialEnvironmental Protection Bueau and PMO at Provincial and county levelsas well as relevantAdministrative Departmen: and loxal resourcepersons for their support andhelp in the courseof drawig up the report.

1.2 BasI For The Rteport 0 1.2.1Feasibility Report (1) FeasibilitrReport SichuanQBPRP ( September,1996); (2) TechnicalStandards of SichuanQBPRP (April, 1996); (3) FeasibilitrReport of the 12 projectcounties and districtsand! the relevantnaterial suppliedby local department.

1.22 Laws and Rewsations (1).TheConstitution of the People's Republicof China(1 982); 0 (2).TheEnvironmental Protection Law of the People's Rlepublicof China (1989); (3).TheLaw of Preventionand Care of Air Pollutionof the peop]le'sRepublic of China (1995); (4).TheLaw of prevention,and careof WaterPollution of the people's rep.ublicof China 0 (1996); (5).TheForestry Law of the People's republicof China (1984); (6).The GrasslandLaw of the PeoplesRepublic of China (1985); (7).TheWater Law of the People'sRepublic of China(I 988); * (8).TheLaw of waterand soil conservationof the People's Republicof China(i991); (9).TheLaw of Conservationof Wildlifeof the People's Republicof china(1988); (10) The Lawof EnvironmentalPrevention and careof SocialWaste Material Pollution of the People's Republicof China(1995); (11I)The Management Regulation of EnvironrnentalProtection of Construction projects 0. (1986) (fromState EnvironmentProtection Commitite, National Planming Committee, NationalEconomic Committee); (12).Proposalsabort the EnvironmentalManagement Problem of Constuction1roject (1988) (fromState E1nvironmentProtection Agency); (13) Proposals about Taking Fnather stps to fulfill the Management of Construction Project 5 (1993) (fromState EnviromnentProtection Agency); (14)."Circular on strengthening Envirownental Assessment Management of the constraction ProjectsLoaned by IntemationalFinancial Organization" (1993) (from State Environmt ProtectionAgency, National Planing Commiittee,The Ministry of * Finance,China People's Bank). 7 China QBPRP--Environmentl ImpactStatment 1.2.3Teeical of Assment (1) JGFprojec of the World Bank,NO 1-8: -The lManualof Agriculure Environment Ilpat Assessmentkn China", (from The Developmentand supervisionDepartment of the State EnvironmentalProjecion Agency,The EnvironmentalScientific Research & Monitorng nstitute underThe Ministrycf agriculture,May 1995); * (2) The TechnicalRegulation upon EcologicalImpact Assessment of the NetuaalResource Developmentconstruction Project (provisionalXDec.1995); (3)The TechnicalGuiding Principles of the EnvironmentalItupact Asessment (HJ/T2. 1- 2,3-93); (4) The World Bank Operational Manual --OperationalDirective 4.01: Environmental Assessmentissued by the WorldBank in July 1992; (5) EnvironmentalAssessment Sourcebook,the World Bank Tecanical Paper No.139 (October1993).

.. 4 Aointment let for Environmt PO of SichuanProvince (1996).

1.3 The scope ,key points, standards, and goals of the EtA

1.3.1 SCopepfte BA (see Figure 1-1): Thereare 12 projectcounties and districtsof Sichuanprovinoe .They are Wangcangcounty, , Chaotian districtunder Guawgyuancity; Tongiang coty , under prefecture; Jialing district, ,Langzhngcowuny and under Nachongcity; Xuanhancounty, Quxiancounty under Dachuan. city, Guangancounty under Guangn Prefecture.Thereare 1,194administrative villages under 129 towmnswith populationof 1,117,664.

1.3.2 Key points of EIA In the light of components(and subprojects)of the project(see, Table 1-1) and the related * regulationsof environmentalmanagement of the basic constructionproject, the main assessmnent issues are: the environmentimpact of componentof rural enterprises,land and farmerdevelopment and the infrastructue, and the preventionand mitigating measureto adverseimpact. Tne focal points are the impactof subprojectof the rural enterpriseand some subprojectof land and farner developmentcomponent on local ecosystem,draft the preventingstrategr and mitigationmeasures.

.3.3 picable NationalStandards (1) Air: Overall air quality in the project area should meet the class 3 standards of the NationalAmbient Air Quality Standard(GB3095-96).The enviromnental, protection sensitive goods near the subprojectwaea should meet the class 2 standards (2)Surfacewater: Surfacewater qualityin the project area shouldmeet the class 3 standards of the EnvironmentalQuality standards of SurfaceWater(GB.3938-88). (3)Acoustics Enironment. The noise should meet The Noise Standard of Urban Environment(GB309,6-93) and The Noise EnvironmentalStandard of the Factories and Enterprise * Area. 8 * 9 -9t China/(inBapoverty Reducfon Project Supp9Tted by he Wod Bank

I- *AW.44W A ~ *V V j I 3~f - A

37 7 ~~~M*4*a-kI*tA700g

Fe~~~~~~~~~~~~I . o _w t ,4 " . O-V~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~iAW93~

r ~ ~~~\- < P \- sI4t, OZfgES**lXt*-tJ10I*M4!WXX+ X ~ ~~~~

-i 7 k China QBPRP--EnvironmentalImpact Statement Table t-l: Components and Cost *~~~~~~~~~~~~~~~~~oof c-Ncost- - R te it onent "hat to do _ bojt tRB _YuanWL f I Land & Farmer grain, cash crop, cash trees, Development fitw tree, animal-raising, 174 532, 106,32S 46.98 * ______improvementof low-yield lan 2 Rural Enterprise & agricultral & by-product Farmer Market processing, construction 68 190, 528,987 16.82

material,_ Farmer market, ete. __= _ 3 Rural drinking water, rural road, 89 J86,684,S34 1648 Infrastructure irrigation channel, electrical wire, land conservation, rural

______ene. __ 4 Labor Mobiliy_ Labor export 14 180,313,792 15.92 * 5 Poverty & Projeci monitoring, feedback, 1.3 20,183,277 1.78

Monftoring sUadstmen . ______6 Institution Mfanagementsystem 1 120,303,558 0.91 Buildine _ _ 7 Micro Rural Credit Encourage household 1 122,580,5231.11 develo.pment 8 Direct Cost 360 _ 1132700.996 100 9 ManagementFee _6__1g3212 10 Physical and Price 344,765, 792

___ Contingency_ ____

11 Total Cost ____ _94 000 000

*(4)WasteGas: Waste gas discharge should meet thie class 3 Standards of Atmosphere Pollutant Discharge Standard in Sichuan Province. -iside the sensitive wreashould meet the class 2. (5)Waste water discharge should meet The Sichuan Provinee Discharqe Standard of Waste Water (DB 51/190-93).

1.3.4 Protectedoals of the EIA (l)Surface wPaterquality in project area: the area of the drinking water source of the inhabitants and peasants. (2)air quality in the prqiect area: especially the atmosphere environmientof the area with * high density population, the inhabitant area and locations of schools. (3)the requirement of ecological environment in project area:lmprovingthe local ecological envionment and promote sustainable developnent activities, which wil'lprofitable to local ecosystem and living conditions of local people.

10 China QBPRP--Environment'al Impact Statement _____ * 1.4 EIA Techniques AnidWorking Methods (I) Collectingexiting materials and data; surveyingon-the-spxt; public intrview, experts consulting,scientific analysis and assessmentaccording to the relevent laws and regulationsof country; (2)Withthe methodof combiningthe macroanalysiswith assessmentof the pilot subproject. ** 10 pilot subprojectare chosento make detail assessment.Their E3A.statements are as appendix documentof this report . On the basis of the pilot EIA statementsdrft the overallproject EIA statement. (3)Themain tasks of this report are proposals of the anti-polution slraey includemain * mitigating measures, the environmentalmanagement and monitornngplan, advanced treatment technologyrecomnended.

1.5 Brief lntroductionof the AssessnmentUnits(SEEP)

* SichuanInstitute of environmentalProtection was foxndedin 1977. It is a comprehensive research institute of environmentalscience under Sichuan 'Provincialenvironmental Protection -Bureau,It has 12 technical sections, such as environmentalengiering section, environmental assessmentsection, Ecologicalenvironment section and environmentalpolicy section,etc. There is faculty with 213, including 183 scientific staffs, among them, 110 senior and middle degree techniciansand 2 expertsaccepted subsidy of the state government.

Sichuan lnusttuteof EnvironmentalProtection holds the "A' level Ceitification of EIA, whichissued by State EnvironmentalProtection AgenCy, an "A' levelCertification of Environmental PollutionControl, which issued by SichuanProvincial Environmental Protection Bureau and a "C" level Certification of EnvironmentalEngineering Designation issued by Sichuan Provincial ConstructionCommittee.

Since its foundation in 1977, the institute has undertake a rtumberof the national and * provincialkey project in the area of environmentalpollution control,such as investigationof water and soil backgroundvalue, pollution and people's health investigationin Three Gorges Reservoir area, researchof acid rain, provinceenvironmental division, etc. And SEEPunderstood a lot of ETA tasks such as EIA of "SichluanAgriculture Comprehensive Development and PovertyReduction in QianjiangPrefecture", "The Developmentof Moxi Natural Gas", "ErtarnElectricity Transformation Project in SichuanChins" ,etc. STEPhas the practical experiencesto undeitake environmental assessmentfor large-scaleproject. It will be able to complete EIA tas]kof this project.

0

11 ChinaQBPRP--Environmental Impact Statement * 2. Project Characteristics

2.1 Investmentframework

The total investment of the Sichuan project are.a is 1,494 million RMB yuan, of * which, the total direct cost is 1,13237million yuan. The investmrentframework is as Table 1- 1. Project area covers 12 poor counties of Sichuan Province, i129 administrative townships, 1,194 project villages and population of 1,128,494 as well as land area of 573,501.7 ha.

2.2 ProjectObjectives

2.2.1 General objective * To solve effectively the feeding and clothing problems of poor household who inhibDitedinside the project villages. To improve the basic living andlproduction conditions of farmers. To fulfill objecting of National 8-7 Poverty Reduction Plan &; Province 7-1-1-8 Poverty Reduction Plan in the project area.

2.2.2 The Ouantified Obiectives of the Proiect (by the end of 6th year) (1) Income and grain objectives: 295,905 farm-households in the project area will get the annual averageper capita net income over 500 yuan based on the price of 1990 and the annual average per capita grain over 400 kg ( see table 2-1). The households with normal labor force and having their annual averageper capita neRtincome less than 400 yuan will not exceed 10% of the total households. Table 2-1: The Work Planfor Incomeand grain Objectives

Ob1g~yetiv Year 1995 1996 1997 1998 1999 2000 200) * _ _ _ _1990 Per capita Constant 312 334 356 414 465 522' 575 Price Net Income 1995 Current 542 708 787 874 965 1,038 1,078 *, Price 1. _ _ _ __

(2) Resources Objectives: 0.6 mu or so of cultivated land and one mu or so of * economic woods per farmer on the average in the 6th year after implementationof the project. (3) Extension objectives: One labor force from each of the 273,464 households of the project villages will master one practical rural skill apart from crop-growing. (4) Infrastructure Objectives: In the 6th year after implementingthe project, all the townships and 80% of the administrative villages will be linked by simply-built highways; the * drinking-waterproblem being solved in 90% of administrative villages ancdelectricity-supply 12 China QBPRP-EnvironmentalImpact Statement * given to the townships having market-fair function.

2.3 DevelopmentStrategy and Planning (1) DevelopmentStrtegy: The basic strategyare comprehensiveapproaches and investment throughvarious x channelsand sustainable development . Priority are givento the sub-projectof gsin-productionand cashearning oriented activities . Thengiving the priorityto solvrethe problemswhich is blamedby mostpoor, such as the well and waterpond constructionfor drinring water. To solve food shortage problems in mountain area3, techniques for food production * increasingwill be usedcthere such as terracemaking, irrigation levelopLng,improved strains of seed introducing,plastic coveringfor corn cultivationand multiplecrop index. To increasingshort-tern benefits to local people, livestockand cash trees and surplus labor earn money off farm will be effectivein the area. At the sametime, To developresources of tlhelong term incomes,non fresh fruit trees andmedical tree are recommended. * To the hill areas,key efforts should be highlightedt) improfvthe low & middle yields paddy for solvingfood problem. At the same time raising more pigs and domestic fowls and more fruits. Enlarge labor mobilityand strengthenthe towm-shipand villageenterpnses(TVEs).

*= To have a stable and longterm benefits for local people there are tow ways could be taken too, in there as labor migrationand rural enterprisedevelopments. To solLvethe problemof drinking water shortagein the projectvilLages, number of wells, water pondsand irrigationprojects will be madein there. To enhanceabilities of people for againstdrought and flood,water channels, dams and _ -lvwaterponds will be built in there. To make better conditionon communicationand energysupply in the project area through rural roads electronic wire constructions. The land and farner developmentshould pay attentionto the balance of land, water resource,soil fertilizerand the balanceof laborforces.

* (2) Principlesof ProjectsSelection (a) The selection of sub-projects should be closely connected with the 4 objectives and having resource advantages and market demand and able to help solve the feeding and clothing problems of the local poor and focus on increasing the income of the farmers get them free from poverty or to become well off. (b) Projects should based on local conditions. The poorest farmersmust be involvedin the project. To encouragepoor famers choose project for themselves.The projects should help local farrrmersincreasing production capacity sustainablely.Pay attentionto the activitieswhich especially suitable to the women.Encourage rural women to carry out small scale animal or poulty raising, mulberry growing and silkworm breeding,manual knitting or weavingand others. HIillsidefields should be pay back to develop forestry,pomiculture ard husbandry,when slope more an 25 degree. Design two kinds of project:one is for earningof shorltterm incomes( diversifiedeconomy * and husbandry ) and another is for earning of long-term sources of incomes ( fruit trees and 13 China QBPRP--EnvironmentalImpact Statement pomiculture),so that poor farmercan be lift out of povertystable. Design two kinds of household model for gett rid of poverty, according to the differentcharacteristics of mountain areasand hilly areas. To reducethe risks of the poor farners, encouraginghouseholds take diversifiedactivities. v At the same time, help the farmers with training of practice technologies, extension support. The projects selected should have active effects on the ecologica[ enviroument.Especially to the TVEs, deletedall projectswhich will causeserious pollution.

2.4 Description of the project . Based on the objectives ,target groups ,local conditions and design considerations, 360 sub-projects of 7 component was selected (Table 1-1,.

X (1) Land and Farmer DevelopmentComponent: It's a key component of the project. The basic cost of the componientis 540,087.92 thousand yuan, accounts for 46.98% of the total basic cost of the total project. The basic principle in selecting sub-projects is to base on resources and face the market and to take income-increaseof the farmers as the first objective. Of the 174 sub-projects selected, those X- of grain corps are the majority and have the largest area. The scales of the sub-project in this componentis respectively: 32,849 hectares for grain-crops, 773 hectares for economic crops, 14,381 hectares for orchards, 207,026 of pigs 26,499 of cattle, 151,433 of goats, 325,978 of ducks, 40,860 of rabbits, 1,758 hectares of grass planting.

(2) Rural Enterprise and Farmer Market: The basic principles for selecting processing enterprise are: (a)Make highLervalues for local farm production, (b) benefit to the poor farmers; (c) feasible for commerce;(d) lowest cost of employment opportunity; (e)Reliable source of know-how; (f) labor security and environmentprotection. Besides, Local infrastructure and technical feasibility should also be considered. Based on these principles, 68 processing enrterprises and farmer market were selected. For their major raw materials, products and investment refer to Ta.ble2-2. All of the sub-projectsof the component are rural enterprises in small scale, include Agricutural & By Product Processing,Mining & Processing, Tea Processin%Fruit Processing, Handicraft,Construction Material, AnimalProduct Processing,Forest Product Processing,Fodder Processing,Farmer Mtarketand Other Product Processig. Th1edistribution of the subproject are showedin the Figure 2-1. The total emission amount of the component refer to the Table 2-3. All the discharge of the Table 2-3 should list in The Total Discharge ConitrolPlanning and The EnvironmentalManagement Planning of the project couanties.

0

14