PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB4718 Project Name Jiangsu Wuxi Lake Tai Environnent Project Region EAST ASIA AND PACIFIC
Public Disclosure Authorized Sector General water, sanitation and flood protection sector (100%) Project ID P115319 Borrower(s) PEOPLE’S REPUBLIC OF CHINA Implementing Agency Wuxi Municipal Project Management Office Wuxi Municipal Government Environment Category [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared April 29, 2009 Estimated Date of March 15, 2010 Appraisal Authorization Estimated Date of Board October 26, 2010 Approval
Public Disclosure Authorized 1. Key development issues and rationale for Bank involvement
Water security is important for the sustainable economic growth of the Municipality of Wuxi and of the surrounding region. Jiangsu Province, together with Zhejiang Province, and Shanghai Municipality, experienced rapid economic growth in the past two decades. The 2006 GDP of Jiangsu Province and Wuxi Municipality were US$ 315 billion and US$ 48 billion, respectively; and corresponding GDP per capita were about US$ 5,800 and US$ 10,600 – far above the national average. Still, the rapid economic growth and industrialization have contributed to the rapid deterioration of Lake Tai water quality, and has affected water security.
Lake Tai is an important drinking water source for the high growth region. Jiangsu and Zhejiang Provinces and Shanghai Municipality depend heavily on Lake Tai water resources. Public Disclosure Authorized In Jiangsu Province, Lake Tai is the main drinking water source for Wuxi Municipality and a number of adjacent towns and districts. The protection and sustainable use of this resource are vital to the daily lives of the 4.6 million residents of Wuxi, and the economic development of the cities and small towns around the Lake. The urgency of the drinking water security problem was emphasized by the severe water pollution incident caused by the algae blooms in May 2007, which caused a water supply crisis in Wuxi, temporarily impacting the local economy, people’s livelihoods, health, and the aquatic ecological system. Water rationing, necessary in an emergency, would have serious impacts on the Municipality. The ongoing Bank-supported Tai Basin Urban Environment Project (TBUEP) supported Government’s efforts to rehabilitate the Wuli Lake through dredging, and wastewater treatment in the major industrial towns of Suzhou and Wuxi in the basin. Wuxi Municipality has implemented a number of measures to protect its drinking water intakes, and continues to implement more measures involving significant expenditures. Public Disclosure Authorized Lake Tai has become heavily polluted since the early 1990s. Water quality in Lake Tai under the jurisdiction of the Wuxi Municipality is Class V or worse1, and is not suitable as a drinking water resource, even with treatment, at certain times of the year. The Lake is in a stage of moderate eutrophication. The incidence of blue algae blooms in May 2007 had considerable impacts on drinking water security, local economy, people’s livelihoods, public health, and the aquatic ecosystem. An emergency response plan has been developed, including alternative water sources, water rationing and algae clean-up. Lake Tai has been one in the nation’s priority water environmental protection programs - “Three Rivers and Three Lakes”.2
Lake Tai water quality has not improved despite large investments. Significant investments have been made during the past decade to treat industrial and domestic wastewater, at a cost of US$1.5 billion and US$2.5 billion, respectively. Reports indicate that 97% of industrial wastewater and 86% of Wuxi's municipal wastewater is now being treated; yet the Lakes’ water quality has shown very limited improvement. A major push is underway to address non-point source pollution, especially rural agricultural and industrial pollution. The benefits achieved so far do not match the investments made. Concerted action is required by all cities and towns fronting the Lake in the Provinces of Jiangsu and Zhejiang to achieve sustainable and effective improvements in the Lake water quality. It is also clear that conventional programs implemented by various governments over the past decade have not been fully effective or adequate; development has continually outpaced attempts at pollution control.
New approaches have been developed in the national master plans. The central government has outlined new approaches in the National Level Master Plan- Lake Tai Watershed Water Environment Integrated Restoration (2012-2020), comprising urban wastewater and industry pollution control, ecological wetland restoration, lake sediment dredging, and non-point source pollution control. The two Provinces and Shanghai are required to prepare and implement plans based on the national master plan. The master plan sets targets for water quality improvement and water pollution load control.
The effectiveness of the Wuxi Municipality’s programs for pollution reduction needs improvement. Wuxi Municipality has developed plans based on the national plan, designed to improve Lake Tai water quality including: increased collection and treatment of municipal and industrial wastewater; relocation and closure of polluting industries; creation of a 100 meter tree buffer around the Lake, ban on fish farming and use of the lake for fishing or boating; construction of wetlands for natural treatment of river flows (that carry non-point source pollution discharges); and dredging of the Lake bed to protect water intake in the Gonghu Lake, which is part of the main Lake. Dredging is continuing in near-shore areas of Meilianghu Lake, which is the part of the larger Lake Tai that fronts Wuxi. While dredging, the Gonghu Lake succeeded in protecting the immediate drinking water intake, the effectiveness of dredging in the
1 ‘Worse than Class V standard’ indicates that water quality is not suitable as a drinking water source, or for agriculture or recreation purposes.
2 The central government has directed considerable efforts to improve water quality in the country’s worst polluted three rivers (Liao, Huai and Pearl Rivers) and lakes (Tai, Dianchi and Cao), commonly referred to as “Three Rivers and Three Lakes”.
Meilianghu area is yet to be demonstrated. Separately, Wuxi Municipality’s approach to ‘ecological wetland restoration’ is extremely costly, as it involves the complete removal of industries and human settlements from the influence areas of the wetlands. The design of wetlands places more emphasis on creating attractive public recreation areas, with inadequate attention to the design that meets the primary objective of natural treatment to improve water quality. Thus, a review and modification of the programs of Wuxi Municipality will be required to improve cost-effectiveness, reduce complexity of implementation, and improve design features. Annex 1 describes the pollution control strategies of the Wuxi Municipality.
Jiangsu Province and Wuxi Municipality have requested World Bank assistance to pilot various approaches in Wuxi, including some which are in the national master plan, in addition to some more innovative approaches which will need to be further developed. The Bank would be able to bring global experience and expertise to contribute to the planned investments and meet the project development objective. Participation in the proposed project will also enable the Bank to continue its association with Lake Tai protection, Jiangsu Province, and Wuxi Municipality, which is a repeat borrower with good fiscal capacity.
2. Proposed objective(s)
The project development objective is to increase the effectiveness of investments for reducing water pollution in the Wuxi portion of Lake Tai area through an integrated approach to improving the effectiveness of programs and investment already underway, introducing new technical measures, and raising awareness of local water problems and solutions.
3. Preliminary description
Component 1: Selective Dredging of Lake Tai: The component would comprise sediment dredging in Lake bed areas with high levels of pollution release, using: hydraulic modeling to study sediment movements; studies of the level of pollution release from lake bed sediment and methods for control of pollution release from Lake bed sediment; appropriate dredging techniques; and safe treatment and disposal of dredged sediment, in accordance with the Lake Tai Contaminated Sediment Dredging Master Plan (2005). Dredging would concentrate on areas that would contribute to maximum pollution abatement, especially in the areas prone to blue algae.
Component 2: Ecological Restoration of Wetlands: The component will include integrated ecological and environmental restoration of two wetlands, namely Changguangxi and the Lake Shore wetland, to demonstrate efficient and effective use of the river channel and lakeshore as wetlands, to reduce pollutants in surface water through natural treatment to Lake Tai.
Component 3: Rural Pollution Management Demonstration: Interventions under the component would include: reduction of pollution discharges to local streams and rivers; ecological restoration planning under a harmonious development approach that retains most of the existing households; demonstration of technologies for non-point source pollution reduction; rural solid waste and wastewater management; and organic eco-friendly farming. The site, located adjacent in the Hongshan Town, has ancient tombs which are classified as national-level cultural heritage. The component will include some improvements to the cultural heritage site, which will be carried out in conformity with the Chinese heritage preservation laws and procedures.
Component 4: Capacity Building and Project Implementation Support. for Lake Tai Environmental Management: (a) capacity-building for improved Lake Tai environmental management, including public awareness-raising and education in Wuxi Municipality, in order to achieve Lake Tai water quality objectives; and (b) project implementation support for project and contract management, expert services for dredging and wetlands restoration, strategic studies, monitoring, equipment, training and study tours.
4. Safeguard policies that might apply
Environmental Assessment (OP/BP 4.01) Involuntary Resettlement (OP/BP 4.12) Physical Cultural Resources (OP4.11) Natural Habitats (OP4.04)
5. Tentative financing Source: ($m.) Borrower 200 International Bank for Reconstruction and Development 150 Total 350
6. Contact point
Contact: Mingyuan Fan Title: Sr Sanitary Engineer Tel: 5788+7767 / +86-10-5861-7767 Fax: +86-10-5861-7800 Email: [email protected] Location: Beijing, China (IBRD)