Ningxia Integrated Ecosystem and Agricultural Development Project

Sri Lanka

Environmental Assessment Report

Summary Environmental Impact Assessment Project Number: 38660 May 2007

PRC: Ningxia Integrated Ecosystem and Agricultural Development Project

Prepared by Ningxia Hui Autonomous Region Government for the Asian Development Bank (ADB).

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

CURRENCY EQUIVALENTS (as of 11 May 2007)

Currency Unit – yuan (CNY) CNY1.00 = $0.1293 $1.00 = CNY7.7325

ABBREVIATIONS ADB – Asian Development Bank CITES – Convention on the International Trade in Endangered Species CSC – construction supervision company EIA – environmental impact assessment EMI – environmental monitoring institute EMP – environmental management plan EMMS – environmental monitoring and management specialist EPB – Environmental Protection Bureau FDN – Forestry Department of NHAR FYP – Five-Year Plan GEF – Global Environment Facility IA – implementing agency IEE – initial environmental examination IEM – integrated ecosystem management IUCN – International Union for Conservation of Nature and Natural Resources (World Conservation Union) IWRM – integrated water resource management NAEPV – Ningxia Association of Environmental Protection Volunteers NFD – Ningxia Finance Department NHAR – Ningxia Hui Autonomous Region NGO – nongovernment organization NXK Ningxia Xixia King Grape Industry (Group) Co. Ltd PMO – project management office PPMO – provincial project management office PMS – performance management systems PPTA – project preparatory technical assistance PRC – People’s Republic of China SEIA – summary environmental impact assessment SEPA – State Environmental Protection Agency SIEE – summary initial environmental examination WRD – Water Resources Department

WEIGHTS AND MEASURES ha – hectare (1 ha = 15 mu) km – kilometer m2 – square meter m3 – cubic meter mm3 – million cubic meters mu – land division (1 mu = 667 m 2) ton – 1,000 kg ii

iii

CONTENTS Page I. MAPS i

II. INTRODUCTION 1

III. DESCRIPTION OF THE PROJECT 1

IV. DESCRIPTION OF THE ENVIRONMENT 5 A. Physical Resources 5 B. Water Resources 8 C. Ecological Resources and Biodiversity 10 D. Cultural Environment 13 E. Socioeconomic Environment 14

V. ALTERNATIVES 19 A. With and Without Project Scenarios 19 B. Analysis of Alternatives 19

VI. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND 20 MITIGATION MEASURES A. Component 1: Building IEM Capacity and Project Management 21 B. Component 2: Land and Water Resources Management 21 C. Component 3: Improving Rural Livelihoods 27 D. Component 4: Conservation and Tourism 27

VII. ENVIRONMENTAL MONITORING PLAN AND INSTITUTIONAL 29 REQUIREMENTS A. Monitoring Requirements and Indicators 29 B. Institutional Arrangements 30 C. Enforcement 31

VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 31

IX. FINDINGS AND RECOMMENDATIONS 35 A. Results of Environmental Assessment 35 B. Recommendations 37 C. Conclusions 38

APPENDIXES

1. Detailed Description of Project Components 39 2. Key Environmental Concerns and Environmental Safeguard Requirements 51 3. Summary Environmental Management Plan for the Overall Project 53 4. Environmental Monitoring Requirements 64 5. Water Resource Subproject 67 5. References 98

I. INTRODUCTION

1. This summary environmental impact assessment (SEIA) describes the possible environmental impacts associated with the Ningxia Integrated Ecosystem and Agricultural Development Project (the Project) in the People’s Republic of China (PRC). The Project uses an integrated ecosystem management (IEM) approach, which emphasizes the links between natural ecosystem capabilities and socioeconomic activities, and seeks to holistically rehabilitate damaged ecosystem functions and services by tackling the root causes of damaging practices, including reduction of rural poverty. The Project will (i) reform enabling policies and regulations and build institutional capacity to combat land degradation through adoption of an IEM approach, (ii) demonstrate measures to achieve improved water and land use planning and management outcomes, (iii) support sustainable rural livelihoods, and (iv) rehabilitate degraded wetlands and grasslands by linking commercial and conservation values. A Global Environment Facility (GEF) grant will ensure an IEM approach is incorporated in the activities planned for the Project area, and support measures to protect 15 globally threatened species. A market-based approach will be taken to promote sustainable resource use, and to protect and conserve wetlands, grasslands, transboundary flyways and cultural sites. Tourism and recreation opportunities will be provided for 1.1 million residents and visitors.

2. The project consists of 17 subcomponents. The environmental impact of the project subcomponents has been evaluated by the Ningxia Institute of Environmental Science and Design, an “A level” certified environment impact assessment (EIA) agency. All Chinese language EIA reports were reviewed by the Ningxia Environmental Protection Bureau (EPB) as of 18 December 2006. After further revision, and the Chinese EIA reports were approved by Ningxia EPB on 16 th February 2007. Based on these assessments, one subcomponent is identified as category A under the Asian Development Bank’s (ADB) Environmental Assessment Guidelines ,1 10 subcomponents as category B, and six as category C. This SEIA covers the category A activities and 10 summary initial environmental examinations (SIEEs) for the category B activities. The SEIA is based on (i) a review of publications by the PRC Government, scientific literature, and previous technical and environmental impact studies, including the draft Chinese EIA reports; (ii) a review of available information on the proposed project design; (iii) consultation with Ningxia EPB and related agencies; (iv) studies undertaken by the project preparatory technical assistance (PPTA) social and environmental assessment teams; and (v) field visits.

II. DESCRIPTION OF THE PROJECT

3. The overall impact of the proposed project will be improved environmental management to rehabilitate ecosystems and increase rural incomes in the Yinchuan plain. The outcome is to introduce an IEM approach to provide sustainable livelihoods for the population of the project area. The project area is located in and around the oasis of the Yinchuan plain west of the Yellow River, and covers about 3,655 km 2 including three districts (Xingqing, Jinfeng and Xixia), 2 counties (Yongning and Helan), and includes Yinchuan City. The project area is comprised of the Helan Nature Reserve, piedmont zone, alluvial plain, wetlands, and urban area. The total cost of the Project is estimated at $215 million, $100 million of which is proposed to be financed by ADB; an application for a GEF grant amounting to $5 million has been submitted.

4. The Project consists of four components: (i) building IEM capacity and project management, (ii) land and water resource management, (iii) improving rural livelihoods, and (iv) conservation and tourism. The summary of the components, subcomponents and corresponding

1 ADB. 2003. Environmental Assessment Guidelines. Manila. 2

ADB environment category is provided in Table 1. Detailed description of the components is in Appendix 1.

Table 1:Classification of Components and Key Activities Key Components Subcomponents ADB Parts and Activities (Subcomponent Environmental Identification Code) Category Component 1: Building Building IEM C IEM Capacity and Institutional Project Management Arrangements (A-1)

Effective Project C Management (A-2)

Component 2: Land and Spatial Planning and C Part 1: Spatial Plan and IWRM Water Resources Integrated Water Plan Management Resources Management (IWRM) planning (B-1)

Land Management C Demonstrations (B-2) Parts 2 and 3: Conservation Agriculture Demonstrations, Conservation C Farmer Field Schools, Fertilizer Agriculture (B-3) Management Demonstrations

Xixia Canal (B-4) A Part 4: Extension Of the Xixia Canal Irrigation System B Rehabilitation and on- Part 5: Rehabilitation of the farm water use Xixia Irrigation Scheme efficiency improvement (B-5)

Component 3: Beef Production (C-1) B Part 1: Central Beef Cattle Improving Rural Breeding Herd Livelihoods Part 2: Rural Household Beef Cattle Breeding Sectors Part 3: Beef Cattle Fattening Demonstration Part 4: Beef Cattle Slaughterhouse Part 5: Capacity Building

Dairy Production (C-2) B Part 1: Five Dairy Farms Construction and Operation Part 2: Cow Production Program Part 3: Fodder Base Improvement Part 4: Capacity Building

Vineyard and Winery B Part 1: Vineyard Development (C-3) Part 2: Winery Development Part 3: Technical Services Unit

Key Components Subcomponents ADB Parts and Activities (Subcomponent Environmental Identification Code) Category Yinxi Alternative B Part 1: Alternative Livelihoods Livelihoods Part 2: Management and Development (C-4) Support Services Part 3: Training and Capacity Building

High Technology and B Part 1: Demonstration Park of Ecological Agriculture Ecological Agriculture Development (C-5) Part 2: Demonstration of High Technology Structural Agriculture Part 3: Beef Cattle Fattening Farm Part 4: Supporting Infrastructures and New Energy Part 5: Supporting and Service Systems

Component 4: Yinchuan Wetland (D-1) B Part 1: Protection of Wetland Conservation and Resources and Biodiversity Tourism Part 2: Rehabilitation of Bird Habitats Part 3: Wetland Park Part 4: Construction for Balancing Water Resources Part 5: Capacity Building

Shahu Lake (D-2) B Part 1: Earthworks and Open- Water Extension Part 2: Plantation and Bird Browsing Trestles and Platforms Part 3: Aquaculture and Tourism Part 4: Tourism Development Part 5: Wetland Popular Science Extension and Education

Yuehai Lake (D-3) B Part 1: Biodiversity Protection and Capacity Building Part 2: Cultivation and Breeding of Water Poultry Part 3: Cultivation and Processing of Aquatic Plants Part 4: Fishery and Processing Part 5: Tourism Development

Yinxi Conservation B Part 1: Yinxi Wetlands Program: Yinxi Wetland Part 2: Grassland Restoration (D-4); Botanical Garden and Set-aside (D-5); Grassland Part 3: Botanical Garden Restoration/set-aside (D-6)

Key Components Subcomponents ADB Parts and Activities (Subcomponent Environmental Identification Code) Category Helanshan Piedmont B Part 1: Cultural relics Conservation preservation (Xixia Tombs, Management (D7): Helankou, Jiangjun) Tourism Cultural Relics (Xixia Part 2: Helanshan Nature Tombs (D-8), Helankou Reserve Rock Carvings (D-9), Jiangjun Tower (D-10), Helanshan Nature Reserve (D-11) ADB = Asian Development Bank, IEM = integrated ecosystem management, IWRM = integrated water resource management. Sources: Chinese Environmental Assessment reports, December 2006; PPTA Final Report, April 2007.

5. Table 2 below shows the classification of the project activities according to PRC EIA environmental categories. Both PRC and ADB environment categories classify the Xixia Canal extension as category I (ADB category A), which requires the preparation of a full EIA report. Some other PRC categories differ slightly from the ADB categorizations. The justification for the differing categorization is as follows: for the Shahu Lake conservation subproject, the tourism zone does not involve a nature reserve and as such is not considered to be a high priority sensitive zone and is classified as category B. The other three subprojects (livestock farms) are agro-industries, are not located within sensitive areas, and have incorporated adequate provision for managing animal waste, waste water and effluent within the proposed investments. Initial environmental examinations (IEEs) were prepared for the category 1 subprojects and found the impacts to be insufficient to change the ADB ranking from Category B to A. No further environmental assessments are required. The Chinese environmental studies concluded that no significant impacts were anticipated in the category I subcomponents, with the exception of subcomponent B-4, for the Xixia Canal extension.

Table 2: Chinese EIA Environmental Category and ADB Environmental Category

Activity Based on Chinese Type in ADB Design and Monitoring Environmental Notes Chinese EIA Environmental Framework Category Category

Xixia Canal Water Resource I A Xixia Canal extension impacts the Xixia Tombs protection area

Lake Shahu Ecological, I B Yinchuan Wetland Wetlands and II B Yuehai Lake Biodiversity II B Botanical Garden Protection II B

Yinxi Alternative Rural Livelihoods II B Livelihoods II B Vineyard and Winery I B HighTechnology and I B Ecological Agriculture I B Dairy Production Beef Production

Activity Based on Chinese Type in ADB Design and Monitoring Environmental Notes Chinese EIA Environmental Framework Category Category Cultural Relics (Xixia Cultural Relics II B Tombs, Helankou, Protection Jiangjun Tower) ADB = Asian Development Bank, EIA = environment initial assessment. Note: Differences between classification methods are explained in para. 5. Sources: Chinese Environmental Assessment reports, December 2006; PPTA Final Report, April 2007.

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Resources

6. The territory of Ningxia Hui Autonomous Region (NHAR) covers 66,400 km², of which the project area comprises 3,655 km 2. The capital, Yinchuan City, is located on the Yinchuan plain in the northern part of NHAR. Due to the availability of irrigation water from the Yellow River, this is the main grain-growing area of NHAR. Approximately 27% of the area of Ningxia is composed of flood plains, 16% is mountainous, 38% is hilly, 17% is tableland, and 2% is desert. Ningxia Province is bordered on three sides by deserts: Tenger Desert to the west, Ulan Buh Desert to the north and the Mu Us Desert to the east. A breakdown of the zones making up the project area is given in Table 3.

Table 3: Project Area Zone Area (ha) % of total a. Helan Nature Reserve 54,210 14.8 b. Piedmont 77,150 21.1 i. Proposed conservation area (53,130) (14.5) ii. Agricultural zone (24,020) (6.6) c. Alluvial plain 195,180 53.4 d. Wetlands 30,000 8.2 e. Urban Area 9,000 2.5 f. Total 365,540 100.0 Source: Provincial Project Management Office.

7. Climate. The project area has a continental monsoon climate, and is arid to semi arid, with annual precipitation of less than 200 mm in the north and east to about 400 mm in the Helan Mountains. Median annual evaporation rates have increased in recent decades and are about 7.5 times the corresponding precipitation rate. The intense evaporation and wind characteristic of the area result in frequent airborne dust. The temperature varies sharply between day and night, and natural hazards—such as drought, sandstorms and floods—occur frequently.

8. Soils. The soils in the project area are complex. Soils in the Helan Mountain range are distributed according to elevation. Five soil types are found from low to high elevations: (i) sierozem (<1,800 m); (ii) skeletal soil (1,800–2,100 m); (iii) calcareous grey-drab forest soil (2,100–2,600 m); (iv) grey-drab forest soil (2,600–3,100 m); and (v) subalpine meadow soil (>3,100 m). The forest and subalpine meadow soils contain higher levels of organic matter, and are slightly more acidic than the soils at lower elevations. The soils of the eastern piedmont and patches of the highland areas consist of sierozem, and alluvial gravel soils with very low water- holding capacities. In general, levels of nutrient levels (phosphorous, nitrogen, potassium and other trace elements, in particular Cu, Mn, and Fe) are low; soils also have extremely low levels

of zinc. The fertility constraints and low precipitation result in most introduced tree species (including poplars) displaying poor growth and certain malformations.

9. The alluvial soils are dominated by irrigated warp soil, reflecting the 2000-year history of intensive irrigation and cultivation. Aquatic and bog soils are widely distributed in existing or former wetland areas. The warp soil is a well-developed agricultural soil, enriched by the water and silt of the Yellow River. Solonchak soils are widely distributed throughout the alluvial plain in areas of high soil salinity. The area affected by salinization has increased with intensified irrigation and excessive use of water. The other main soil type is the shifting and semi-fixed aeolian soil, which is distributed unevenly on the piedmont and plain.

10. The alpine meadow, forest, steppe, desert, wetland, cropland, and urban ecosystems form a complex mosaic in the project area. The ecological zoning presented here has been used in previous studies by the Ningxia Environmental Protection Bureau (EPB) (NEPB 2003) and Ningxia Institute of Agriculture (Mei, 2006), following the guidelines of the State Environmental Protection Administration (SEPA) (SEPA, 2003). 2 The Project area has six ecological zones.

(i) Helanshan forest-grassland conservation zone (Zone I), (ii) Helanshan piedmont desert steppe and flood control zone (Zone II), (iii) Lake Shahu wetland conservation and salinity treatment zone (Zone III-1), (iv) Northern Yinchuan dryland agriculture and salinity treatment zone (Zone III-3), (v) Yinchuan City urban environment and wetland conservation zone (Zone III-2), and (vi) Southern Yinchuan irrigated agriculture and soil fertilization zone (Zone III-4).

11. The status of each zone and its sensitivity towards land degradation, including salinization, soil erosion, and desertification is presented in Table 4.

Table 4: Land Degradation Status for Each Ecological Function Zone

Erosion Zone Salinity (ton/km 2) Desertification SS SE SD III-4 Moderate <500 Light Moderate Least Low-moderate III-2 Light <500 Moderate Moderate Least Low-moderate III-3 Severe <500 Light High Least Low-moderate III-1 Salt Soil <500 Severe Extremely High Low Moderate II No 500–2000 Light Low Low Moderate I No 500–2000 No Least High Least km 2 = square kilometer, SD = sensitivity for desertification, SE = sensitivity for erosion, SS = sensitivity for salinity. Note: Erosion values are based on an average for 1956–2001. Source: PPTA Final Report, April 2007 .

12. Land conversion rates in NHAR were the highest of all regions and provinces within the PRC during the 1990’s as agricultural expansion underpinned economic development and growth. Agricultural production increased but the efficiency of natural resource use was very low. Traditional rice varieties account for 16% of total rice production, but consume 33.2% of irrigation water in the plain. Grain production per cubic meter of irrigation water is only 0.85 kg, and irrigation efficiency is 0.40, or 80% of the national level. Indicative sector performance ratios for Ningxia and the PRC are presented in Table 5.

2 Gensuo. 2003. Ecologication Function Zonation of Northern Ningxia. Ningxia Institute of Agriculture . Mei. 2006. State Environmental Protection Agency: Recommended Guidelines for Ecological Function Zonation.

13. Fertilizer use has increased dramatically, from 178.2 kg/ha in 1970 to 1,950 kg/ha in 2002. The efficiency of fertilizer use is reportedly very low, with many smallholders on marginal land reporting lower crop yield responses. For example, the efficiency for nitrogen fertilizer is 30%, compared with the national level of 40%. This is often compounded by (i) the quality of fertilizer, (ii) inappropriate nutrient ratios, and (iii) poor understanding of crop nitrogen demands.

Table 5: National Significance of Some Key Variables

Variable NHAR PRC Percentage Average Average (%) Precipitation (mm) 292.00 620.00 47.00 Water resources (billion m 3) 1.17 27.80 0.04 Unit area water (m³/km²) 22,600.00 318,300.00 7.10 Irrigation efficiency 0.40 0.55 80.00 Forest production (m³/ha) 1.50 1.84 81.00 Fish stocking (kg/mu) 13.00 36.00 36.00 Non-irrigated crop production (kg/mu) 39.00 124.00 31.00 Desert steppe productivity (kg/mu) 53.00 67–134 Typical steppe productivity (kg/mu) 79.00 100–300 Per capita grain (kg) 634.20 317.00 200.00 Fertilization (kg/ha) 1,950.00 335.00 585.00 ha = hectare, kg = kilogram, km 2 = square kilometer, m2 = square meter, m 3 = cubic meter, mm= millimeter, mu = 1/15 ha. Source: Annual Yearbook.

14. The expansion of agriculture and the increased intensity of production resulted in significant changes to more traditional production systems. On the plains of northern Ningxia, desert steppe-based animal husbandry was replaced by mixed agriculture with irrigated farming and animal grazing. This increased production, but caused serious damage to grasslands and shrublands. The growing human and animal populations exerted increasing pressure on the available land resources. As a consequence, land degradation accelerated and environmental degradation became increasingly severe.

15. From the early 1950s to the late 1970s, major farmland reclamation schemes were conducted to address food shortages, further expanding the area affected by land degradation. Since the 1980s, economic development and construction have expanded to meet the demands of a growing population. However, the relationship between economic development and environmental protection was not adequately considered. While efforts were made to promote the development of the local economy and to improve people's living conditions, the demand for natural resources continued to rise. Overgrazing, relentless farmland reclamation, indiscriminate firewood collection and expanding livestock grazing occurred.

16. Ningxia currently experiences moderate to severe land degradation problems on over three-quarters of the total land area. In addition to the harsh natural conditions, the root causes of land degradation are population pressure, poverty, and inappropriate and overuse of land resources. At present 22.1% of land is slightly degraded, 44.5% moderately degraded, and 33.4% severely degraded.

17. The root causes of ecosystem degradation include rural poverty, lack of alternative livelihoods that avoid damaging practices, inadequate knowledge of ecosystem capacities and institutional capacity to prevent the damage, incomplete land tenure arrangements and lack of rural financial services. These are exacerbated by the following factors:

(i) Harsh natural conditions. Precipitation is very limited and ecosystems are generally fragile. The amount of rainfall varies remarkably between seasons and from year to year; droughts and sandstorms are frequent. Due to the dry ground surface and low vegetation coverage, the sandy soils are very sensitive to wind erosion if exposed to climatic forces when the vegetation cover is removed. (ii) Overutilization of natural resources. Reclamation of marginal land for farming, overgrazing, indiscriminate firewood collection, extensive farming and poorly planned irrigation are causes of desertification. Farmers reclaim sandy grassland for growing crops in years of high rainfall, and then abandon the land in years of low rainfall. This temporary cropland is so-called ”try-chance farmland”. (iii) Overgrazing. Natural grassland covers 2.4 million ha in Ningxia. Prior to the recent grazing ban, this grassland was being grazed at 150% of its assessed capacity. (iv) Improper land restoration practices. Many past land restoration practices have focused on planting trees in this arid region, and also tried to flatten sand dunes for cultivation. There is also widespread confusion regarding the difference between land that is naturally sandy and the wider process of desertification. (v) Salinization of high-level water tables resulting from irrigation and other water distribution systems. (vi) Loss of soil fertility and structure due to overcultivation.

B. Water Resources 18. The water cycle for the project area is dominated by (i) low precipitation; (ii) high potential evaporation, (iii) groundwater that is highly acidic, and in places, highly saline and alkaline, and (iv) cold winters and mild summers. The project area is also adjacent to the Yellow River, with its associated wetlands, deep alluvial aquifers and the protected Helan Mountains. The project area’s historical development is closely linked to the surface water resources of the Yellow River, which were diverted onto the Yinchuan plain more than 2,000 years ago using gravity fed canals. Use of water resources has until recently been relatively unrestrained; there is increasing water scarcity within the Yellow River system, however, and NHAR is under significant pressure to save water. Currently, Ningxia has one of the largest water allocations for the Yellow River system, yet is very inefficient with respect to rice cultivation, requiring almost twice as much water per kg of rice produced as the national average.

19. Annual precipitation varies from less than 200 mm in the Yinchuan Plain to over 400mm in the Helan Mountains, with most of the precipitation falling as rain in storms during the summer months of July to September. The annual evaporation rate is high, reaching up to 1,200 mm on the Yinchuan Plain. Potential evaporation is approximately seven times the annual precipitation. The evapotranspiration rate for various types of land use and crops indicates the highest users of water are locally preferred vegetable crops and paddy rice.

20. Surface Water . The Yellow River flows for 78.4 km in NHAR, at a very low gradient and relatively shallow depths, with numerous shifting sand banks and temporary islands. River flows have declined in recent years. Surface water is diverted from the Yellow River at the Qing Tongxia Dam and then transported throughout the project area by way of canals used for gravity-fed irrigation. The average annual channel water volume ranges between 6 and 8 billion m3. There are 10 main irrigation canals and five major drainage canals. Ningxia’s total irrigated area is 450,000 ha (7.4 million mu);3 in Qing Tongxia Irrigation District the irrigated area is 300,000 ha (4.95 million mu). The irrigation area in state farms covers 40,000 ha (600,000 mu) within Helan County, Yong Ning County and three districts in Yinchuan City. The quality of

3 1 2 1 mu= /15 hectare or 667 m .

9 surface water has varied over time and is generally related to the leaching of salts from the soil zone due to irrigation losses and shallow groundwater seepage. Monitoring of drainage water quality has generally shown a steady decrease in water salinity (both harmful and benign) over the last 40 years.

21. Groundwater. The Helan Mountains are primarily composed of hard rocks of various ages and types that do not include major aquifers. In contrast, layered alluvium (composed of sand and silt) extends to depths of more than 2,000 m near the centre of the valley. The only aquifers currently used for water supply are a multi-layered sequence of alluvium, divided into a shallow unconfined to semi-unconfined aquifer, and underlain by a first and second confined aquifer to depths of about 300 m. These are the only aquifers currently used for water supply for industry, agriculture and potable water, but much deeper aquifers have the potential to yield geothermal water and hydrocarbons.

22. A thick wedge of undifferentiated sediments derived from mountain erosion by wind, water and glacial activity is found in the piedmont area at the foot of the Helan Mountains. These sediments are composed of silt, sand, gravel, cobbles and boulders, and make up the western recharge zone of the shallow and confined aquifers.

23. Within the irrigated area, the average groundwater level is from 1 to 3 m below the surface. Near the drainage channel system, the groundwater level can reach 4–5 m. In northern part of Yinchuan City, the groundwater level is less than 2.5 m, and the yearly variation in the groundwater level is about 1–2 m. In the southern part of the plain groundwater is found at a depth of about 2–4 m, whereas in the north, it is about 1–2.5 m. This contributes to the increase in surface salinity to the north, caused by higher evapotranspiration, and the relative absence of wetland features in the south.

24. The shallow groundwater generally flows from the southwest and west to the northeast and east. It originates in the recharge from the Helan Mountains at the piedmont with additions from direct rainfall and irrigation leakage on the Yellow River plain. Discharge occurs in part to wetland areas (although at some times during the year the flow may be from lakes to groundwater), to drains, and to the Yellow River.

25. In the southern part of the Yellow River plain, the shallow groundwater is of good quality, with a salinity level generally below 1 g/l. This is a result of high infiltration by diverted Yellow River irrigation water, rainfall, good drainage and limited surface evaporation. In contrast, in the northern plain salinity is 1–3 g/l, with a few higher concentrations. These are likely to result from a combination of higher surface evaporation, poorer drainage and longer residence times of groundwater in the aquifer. The sodium is present mainly in the form of sodium sulfate and sodium bicarbonate, and consequently the water remains mostly acceptable for agricultural, industrial, and to a large extent, domestic uses.

26. Wetlands. Wetlands are found on the alluvial floodplain of the Yellow River in low-lying depressions that represent former channels of the river as it migrated across the plain. In prior times, these wetlands were likely to have been maintained by a combination of precipitation, groundwater discharge and frequent flooding prior to the development of the irrigation district. The hydrological regime is vastly altered by groundwater extraction, irrigation seepage, drainage and construction of dikes. The wetlands can be classified into several groups, but essentially they function in a similar way in terms of the water balance. One of the key factors in considering the wetlands is their depth. As a consequence, relatively small changes in the water balance can cause water level fluctuations with severe impacts.

27. There are currently four sewage treatment plants in Yinchuan City, with a fifth being planned. Current treatment capacity at two of the plants is 100,000 m 3/day and 50,000 m3/day at the other two plants. One plant has a secondary waste treatment facility, with secondary treatment planned for the other plants. Secondarily-treated water is used mainly for fountains, park watering and public toilets. At present, only 22,000 m 3/day is treated to secondary level, while the pumping capacity is 53,000 m 3/day. The rest of the water drains to the Yellow River. Plans call for the secondary wastewater to be drained into the Yuehai Lake system to maintain water levels, but this will increase the lake’s nutrient loading.

28. Ningxia faces two options to maintain its current status with respect to water: (i) increase the water supply from alternate sources (e.g. groundwater) at a significantly higher cost; or (ii) rapidly implement a program of water use efficiency, especially within the agricultural sector, which consumes the majority of water. The current policy of providing a water fee exemption in return for developing irrigated land on the margin of the piedmont and using irrigation water for trees on the piedmont needs to be reconsidered.

29. Groundwater recharge is a complex process in the project area due to the presence of intensive irrigation from canals and drainages. Recharge has the following components: (i) runoff from the Helan Mountains that infiltrates the piedmont plain, (ii) leakage from irrigation canals, (iii) deep percolation below irrigated land, (iv) direct precipitation on agricultural land, and (v) interchange with deeper aquifers. Most of the recharge occurs during the period of late April to mid-November, and is estimated to be almost 6 billion m3 for all of Ningxia.

C. Ecological Resources and Biodiversity

1. Ningxia Biodiversity

30. Although suffering severe environmental degradation over recent centuries, Ningxia supports a wide variety of species of biota (see Table 6)4 (Ma Jun 2004; Shapiro 2001). Ningxia is small relative to other provinces in China, representing less than 1% of China’s land area and 1% of the natural wetland area. However, the proportion of species in China represented in Ningxia is relatively high with 7% of vascular plants, 9% of fish, and (remarkably) 27% of birds. The importance of NHAR in terms of biodiversity (see Table 7) is poorly understood and poorly reflected in decision-making regarding land and water.

Table 6: Number of Wildlife Taxa in Ningxia Hui Autonomous Region Class Order Family Genus Species Fern   12 20 40 Gymnosperm   5 9 17 Angiosperm   112 606 1,844 Vascular plants   129 635 1,901 Crustacea 1 1 1  2 Fish 1 3 6  37 Amphibians 1 2 4  7 Reptiles 1 2 8  21 Birds 1 17 49  320 Mammals 1 6 20  85 Total (fauna species) 6 31 88  472 Source: Project Preparatory Technical Assistance Final Report, April 2007.

4 Ma Jun. 2004. China’s Water Crisis . Translated by N. Yan Liu and L. R. Sullivan. Eastbridge, Norwwalk, CT. Originally published as Zhongguo shmiweiji in Chinese (1999). Beijing: China Environmental Science Publishing House. Shapiro, J., 2001. Mao’s War Against Nature: Politics and the Environment in Revolutionary China . Beijing: Cambridge University Press.

2. Project Area Biodiversity

31. The project area includes three major ecosystem types, in three biogeographic units. The Helan Mountains is one ecosystem comprising IUCN’s biogeographic Unit 39 (Helan Mountain). A second ecosystem, the piedmont at the eastern foot of the Helan Mountains, lies between the Yinchuan plain and the Helan Mountains. The piedmont lies in Hetao Plain biogeographic Unit 16, which extends eastward to include the third ecosystem, Yinchuan plain and the Yellow River floodplain. The project area includes the Yinchuan plain as far as the east bank of the Yellow River, which is also the west boundary of biogeographic Unit 14, the Ordos Plateau.

Table 7: Land Area and Wildlife Species in Ningxia as Proportions of the PRC National Totals Percent in Ningxia Total China Total Ningxia (%) Land area (km 2) 66,400 9,326,410 0.7 Natural wetland area (km 2)a 2,560 250,000 1.0 Ferns 40 2,600 1.5 Gymnosperm 17 193 8.8 Angiosperm 1,844 24,357 7.6 Vascular plant species 1,901 27,150 7.0 Crustacea 2   Fish 37 395 9.4 Amphibians 7 340 2.1 Reptiles 21 424 5.0 Birds 320 1,200 26.7 Mammals 85 394 21.6 Fauna species 472 2,753 17.1 km2 = square kilometer,  = no data available. a Excludes man-made wetlands such as paddies, fish and prawn ponds. Source: PPTA Final Report and Biodiversity Surveys.

32. Biodiversity in these three ecosystems has been inventoried a number of times since the late 1980s. Inventories for two eco-regions (the Helan Mountains and Yinchuan plain) are used here. The piedmont has not been studied as an ecosystem separate from the Helan Mountains and plains, thus detailed discussion of its ecology is not possible.

33. Table 8 lists species totals for Yinchuan plain, Helan Mountains, the project area (Yinchuan plain plus Helan Mountains), and NHAR. Lack of data for fish, amphibians and reptiles on Helan Mountain does not necessarily reflect that no species are present, but rather the need for field surveys. The project area (Yinchuan & Helanshan in Table 8) includes 68% of the total number of vertebrate species found in NHAR, reflecting its importance to the biodiversity conservation effort of both the province and the PRC. Within the project area the alluvial plains contain nearly 50% of all NHAR vertebrate species, compared with 30% for the Helan Mountains zone, highlighting the importance of the wider alluvial plain for biodiversity conservation. The conservation status of the Helan Mountains Nature Reserve has resulted in the biodiversity values of the alluvial plain being largely ignored. While no combined list of vascular plants is currently available, the Yinchuan plain contains 12% of NHAR’s known vascular plants, while the Helan Mountains contain 30%. The project area has significant biodiversity values that are poorly understood and have rarely been considered in past decision making.

Table 8: Species Totals for Yinchuan Plain, Helanshan, the Project Area and Ningxia Project Area Yinchuan Helan NHAR Plain Mountain (Yinchuan & Helanshan) Vascular plants 245 585 — 1,901 Fish 29 — 29 37 Amphibians 5 — 5 7 Reptiles 13 — 13 21 Birds 150 120 232 320 Mammals 32 21 42 85 Total Vertebrates 229 141 321 470 — = data not available, NHAR = Nihxia Hui Autonomous Region. Source: PPTA Final Report.

3. Biodiversity at Risk

34. The project area supports a variety of wildlife species of national, regional and global conservation concern (Table 9). A priority reason for GEF involvement is to address the species listed in the left-hand column of Table 10, and especially the nine species that are globally threatened.

35. The other categories of protection or conservation concern are also important but these address international trade (through the Convention on International Trade in Endangered Species of Wild Fauna and Flora, or CITES), national concerns (Red Data Book listing and protection by the PRC), or regional concerns (migratory bird treaties, NHAR protection). The PRC is a signatory to three bilateral migratory bird treaties, one each with Japan, Australia, and USA.

Table 9: Project Area Wildlife Species of National, Regional, and Global Conservation Concern Total NHAR PRC Red PRC Migratory IUCN CITES Protected Data Book Protection Bird Treaties Species Cr 1 App I 3 En 1 Class I 6 C-J 59 En 4 App II 12 Ra 5 Class II 50 C-A 34 Vu 10 App III 6 Vu 14 C-U 31 Un 2 Total 15 21 22 56 124 43 App = appendix, CITES = Convention on International Trade in Endangered Species of Wild Fauna and Flora, Cr = critically endangered, C-A = China-Australia, C-J = China-Japan, C-U = China-USA, En = endangered IUCN= International Union for Conservation of Nature and Natural Resources, NHAR = Ningxia Hui Autonomous Region, PRC = People’s Republic of China, Ra = rare, Un = undetermined, Vu = vulnerable. Sources: Chinese environmental assessment reports, December 2006; PPTA Final Report, April 2007.

36. Of the 15 globally threatened species, nine (the Chinese softshell turtle plus all eight mammals) are permanent residents of Ningxia,. The other six species are migratory birds that do not breed in Ningxia but occur during autumn, winter and/or spring, returning to northeast China and Mongolia during the summer breeding season. Threats to these species in the project area consist mainly of habitat loss and disturbance. The water birds require large lake or

13 marsh wetlands, where they feed to replace fat reserves metabolized during long migration flights. The great bustard requires open grasslands or mixed shrub-grasslands throughout the winter. All of these species require low levels of disturbance from human activities.

Table 10: Globally Threatened Species Recorded in the Project Area Species IUCN Location of Occurrence Threat Yinchuan Scientific Name English Chinese Helanshan Piedmont Category Plain Pelodiscus sinensis Chinese softshell VU yes Pelecanus philippinensis Dalmation pelecan VU yes Anser cygnoides swan goose EN yes Anas Formosa Baikal teal VU yes Aythya baeri Baer’s pochard VU yes Mergus scaly-sided squamatus merganser EN yes Otis tarda great bustard VU yes yes Felis bieti desert cat VU yes Cuon alpinus dhole EN yes yes Lutra lutra Eurasian otter VU yes Ovis ammon argali VU (EN) a yes Ochotona argentata Helanshan pika CR yes Cardiocranius five-toed pigmy paradoxus jerboa VU yes Euchoreutes naso long-eared jerboa EN yes Eozapus Szechuan jumping setchuanus mouse VU yes CR = critically endangered; EN = endangered; IUCN = International Union for Conservation of Nature and Natural Resources, VU = vulnerable. a The local sub-species Ovis ammon spp. darwini ( the Gobi argali) is listed as endangered. Sources: Chinese environmental assessment reports, December 2006; Project Preparatory Technical Assistance Final Report, April 2007.

D. Cultural Environment

37. Cultural Sites. The project area includes several culturally important sites and has a significant place in Chinese history. The Xixia Tombs site is currently short-listed for classification as a World Heritage Site. It was the location for the Xixia Dynasty, which was extinguished by Genghis Khan, and is currently represented by over 100 tombs; these are rated as nationally important cultural sites, have a significant role in national cultural tourism, and are an integral part of the wider ecosystem. The project will invest in the restoration and protection of one tomb and the management of the wider site to prevent damage from rain, floods and visitation.

38. A thorough archeological survey of the Xixia Tombs area was conducted in 2000, and a Xixia Tombs Protection Plan formulated by the China Cultural Relics Institute and promulgated by the NHAR government on 11 July 2001. This plan classified the Xixia Tombs area into two zones and set forth the following protection.

(i) Core protection area. An area (500 m radius) containing tombs of ancient emperors and queens, an area (200 m radius) of large to medium-size

ancillary tomb groups, and an area (50 m radius) of other collections of temples and tomb groups. Within the core protection area, existing facilities that prevent effective protection of the Xixia Tombs must be removed. Any activities (e.g. civil works, land reclamation, soil excavation, and other engineering works) that may damage the cultural relics and the natural environment in the area are prohibited;

(ii) General protection area. Includes all areas within the Xixia Tombs protection zone other than the core protection area. These areas may include some individual small tombs. The plan requires that (a) land acquisition controls be in place; (b) prohibits the construction of any new camps, farmer housing and hotels, etc.; (c) bans livestock grazing and farming; and (d) prohibits the random entry of motor vehicles.

39. However, before the survey and the promulgation of the Xixia Tombs Protection Plan in 2001, many farmers’ houses, an air force base, and on the eastern side of the Yanshan road (Highway No. 201) were built inside or cut cross the general protection area.

40. The Helankou ancient relics and petrogylphs are internationally important and are considered to be some of the earliest rock drawings known to humanity. The site has been recognized by the United Nations Educational, Scientific and Cultural Organization (UNESCO) and is currently being visited by an increasing number of (mostly national) visitors. The site will be supported by the Project through the increased protection and management of remaining petroglyphs. Other cultural sites are linked to the Qing Dynasty, with the Jiangjun tower house and the termination of the great wall close to the Helan Mountains. The Project is restoring the Jiangjun Tower site and surrounding courtyard.

E. Socioeconomic Environment 41. NHAR has a population of 5.8 million people, and is growing at a rate of 1.1 % per year. The project area includes portions of three districts (Xinqing, Jinfeng and Xixia) 5 and two counties (Yongning and Helan), including 19 townships and 9 State Farms of the Ningxia Agricultural Reclamation Group Ltd. Co. The total population of the Project area is approximately 1.14 million, of which 600,000 (60%) is urban and 450,000 (40%) rural. The population density in the project area is an indicator of the demand for local resources. In NHAR the average population density is 80 people per km 2, which is 61% the PRC average of 131 people per km 2.

42. The average population density of the Project area is 351 people per km 2, which is some 2.7 times the national average and 4.5 times higher than the average NHAR density. This suggests a significantly high demand for resources. The urban population density within the project area is 5,000 people per km 2; although lower, the rural density —130 people per km2— is still high, and close to the national average. Currently, an estimated 20% of the total project area population (or approximately 45% of the rural population) live in or are associated with one of the State Farm Enterprises. These population densities exceed the 1995 averages reported by the World Resources Institute for any of 62 countries with large expanses of arid lands. The highest overall population density reported (314 people per km 2) was for India, and was some 9% lower than the current project area density.

43. The high project area population density reflects the high proportion of the population that is urban (60%), and the intensive nature of irrigated agriculture on the alluvial plain, and is indicative of a region built around irrigated agriculture. However, the density also reflects a

5 Only areas west of the Yellow River.

major constraint for sustainable rural and urban development, with rural households that have plots of land that are too small to enable them to escape poverty without innovative solutions and improved linkages to markets and services (e.g., vocational training). The high proportion of urban people and the expanding urban-based economy suggests there will be a changing role for the primary sector and an increasing role for the secondary and service sectors.

44. In 2004, the average annual urban income was CNY7,200 ($887.79), which is 2.3 times the rural average per capita income of CNY3,080 ($379.78). The urban–rural disparity is compounded by the lack of welfare and retirement support for rural citizens in the PRC, although many large enterprises are increasingly delivering social benefits. Overall, official estimates of poverty are low and have shown significant improvement in the last decade.

45. NHAR ranks seventh in terms of poverty incidence, with 17% of the population living on less than $1 per day. Most poverty is found in the rural southern mountainous area of Ningxia, where the Government is implementing major programs. Within the project area poverty incidence is estimated to be approximately 10%, based on Yinchuan Municipality’s criterion of CNY1000 per capita per year. Based on this criterion some 48,000 individuals in the Project area are considered poor. The poor in the project area includes mainly people who were resettled from within NHAR in the period between 1983 and 1996, as part of past poverty reduction programs and the Twin City Development Program. Of the 19 townships within the project area, six are designated by the municipality as poverty townships. In addition, the project area is home to a large group of vulnerable people (amounting to 10% of the rural population), whose annual per capita net income is between CNY1,000 and 1,500; this vulnerable group could easily fall below the poverty line.

46. Field work determined that poverty in the project area was concentrated on the margin of the alluvial plain in the piedmont transition zone; the poor and near poor were most commonly members of resettled households, suggesting that poverty may simply have been relocated. Data from the main receiving resettlement communities indicate that a total of 15,335 households are affected. Households in XingJing have average cultivated land plots of 0.80 mu (or 533 m 2) per capita. While people in Lu Hua have more land (Table 11), it is very poor in comparison with high reliance on off-farm income; grain production is much lower, at 66 kg per mu compared with 372 kg per mu in XingJing. Table 11: Poverty Statistics of Resettled Villages

Per Per Capita Name of Total Land Cultivated Cultivated County House- Capita Grain Resettlement Pop. Minority Area Area Land Per Name hold (Net Availability Township (mu) (mu) Capita Income) (kg) MinNing Yongning 3,476 22,011 16,579 77,150.0 24,785.9 1.13 1,123.75 256.92 (75%) ShengLi Yongning 793 2,473 9 14,101.0 10,730.1 4.33 1,522.00 765.47 (0%) XingJing Xixia D. 3,426 15,922 15,310 43,290.0 12,650.9 0.80 1,246.60 295.91 (96%) LuHua Xixia D. 2,926 12,236 898 70,138.2 34,955.2 2.85 1,314.00 187.13 (7%) LiangTian Jingfeng D. 3,504 16,068 15,901 84,520.0 24,398.5 1.52 1,222.60 772.42 (98%)

Nan Helan 1,210 5,482 5,482 28,950.0 9,881.2 1.80 1,358.00 797.25 LiangTaiZi (100%) Total 15,335 74,192 54,179 318,149.2 117,401.8 1.58

(73%) kg = kilogram, mu = 1/15 th of 1 hectare, pop. = population.

47. The main factors contributing to rural poverty in the project area can be summarized as follows: (i) lack of reliable irrigation systems; (ii) small landholdings; (iii) poor soil quality and traditional farming technology; (iv) surplus labor within the households and limited off-farm jobs; (vi) high inputs on the land (fertilizer, machinery, irrigation); (vi) the lack of diversified crops (especially economic crops); (vii) limited human capital; and (viii) a lack of market power to increase the potential to add value. These are related to a lack of land per capita, and to the scarcity of other resources—such as affordable water—which are too scarce to enable households to gather sufficient capital to exit poverty. The continuing rural poverty supports the conclusion that it is impossible to exit poverty by relying on existing farming systems with limited water and land resources, and strongly supports facilitating the migration of rural labor into paid employment by means of vocational training.

48. Analysis of formal field surveys 6 and participatory key informant discussions on poverty from subgroups within the population has identified three typical communities in Yongning, Xixia, and Helan counties: (i) resettlement communities within the transition zone of the eastern piedmont and alluvial plain, (ii) communities within the alluvial plain with more than 2000 years of irrigation history, and (iii) state farm enterprises and associated communities that are stakeholders and beneficiaries within the Project.

49. A survey of 270 households was completed, the findings of which indicate significant differences between the major stakeholder groups. Resettled communities are poorly endowed with natural resources, human and social capital, and financial resources. 7 The development assets for the resettled households are represented in Figure 1. This subgroup is ranked well below the average of all households surveyed, with particular weaknesses in terms of human and natural resources (i.e. land and water for irrigation), with resultant development constraints. The irrigated subgroup has stronger physical and financial capital than all other groups, and is considered to possess more human capacity than the other two subgroups. It is ranked closely to the average ranking. The State Farm subgroup was by far the least constrained group in terms of their overall opportunity to develop, and has a larger assets pentagon than the average. The detailed findings are both presented in the Detailed Social Assessment Report and Livelihood Survey Report contained the PPTA Final report.8

Figure 1: Assets Pentagon – Resettled Households

Human Capital

Natural Resource Social Capital

Physical Capital Financial Capital

Average Resettle

6 A formal livelihood survey was completed in 3 communities from each group with 30 households per community surveyed; the survey report is in the PPTA Final Report. 7 The DFID Sustainable Livelihood Approach was used to identify the livelihood assets that each household has access to in order to continue to develop their overall wellbeing and exit poverty. 8 Due to large farm land, in state farm communities, both men and women have to work on farming.

50. The survey clearly indicates that resettled communities are a priority with respect to households that should be targeted to address poverty, with a number of issues that should be addressed, including most importantly the need to ensure that vocational training is provided to allow the labor force access to non-farm employment, and changes in land use to higher value, lower-cost crops. Key requirements include the need for training, value chain networking, social networking (via associations), and access to affordable credit sources.

51. Overall, the Project will enhance livelihoods for the rural poor as well as create new economic opportunities for resettled populations by involving them in five poverty reduction strategies: (i) state farm initiatives for off-farm jobs and contract producers; (ii) commercial, (e.g., high technology) enterprises guaranteed to be profitable producers; (iii) alternative livelihood initiatives to create financial assets by changing land use; (iv) public civil works (e.g., construction of Xixia Canal), to reduce the high irrigation costs; and (v) vocational training to ensure access to well-paid off-farm employment.

52. Ningxia is a Muslim Autonomous Region in which the Hui, most of whom follow Muslim traditions, comprise 35% of the total population. In the project area, the Hui represent less than 20% of the population; they live in three districts (Xingqing, Jingfeng and Xixia), and two counties (Yongning and Helan). Approximately 73% live in resettled communities. The Project has been assessed as having no negative impact on ethnic minority groups. Project investments for improved water resource management—the Yinxi alternative livelihoods and Ningxia Administrative Bureau of Hi-Tech investment—provide significant benefits by reducing the direct cost of irrigation, promoting more sustainable land use that yields higher incomes, and offering vocational training and opportunities for improved livelihoods. Participation of Hui Muslims will be also enhanced by (i) provision of grants by Yinchuan Municipality for improved land use, (ii) the State Farm bearing the costs of cattle purchases, and (iii) the provision of technical services through contract farming arrangements.

53. Women in the project area are becoming increasingly involved in both productive activities and household work. Similar to other rural areas of China, rural households in the project area are experiencing the feminization of agriculture, as men and boys seek work outside the farms, effectively increasing the role of women in farming activities. Women account for 49% of the total population and less than 49% of total labor force, but for up to 60–70% of the rural work force. The role of women is less prominent within the state farm communities,10 however, due to the large landholdings where both men and women are needed to work the land. Whenever land reallocation is required, women’s rights to land need to be asserted, and the Project will ensure that women have equal access to contract farming arrangements and smallholder land leases. A project strategy includes providing women with vocational and literacy training to enable them to participate in more highly paid employment. Introducing agriculture conservation practices will reduce labor demands, thus reducing the level of drudgery for women and freeing them from farming activities. Additional jobs for women will be created through state farm and commercial enterprise initiatives, especially in vineyard construction, tourism, and livestock breeding activities. Through the Farmers’ Field School program, more gender awareness and sensitivity training programs will be promoted.

54. The estimated number of project beneficiaries total up to 33,860 rural households (140,860 individuals), the majority of which are from resettled communities. In addition, 1,835 permanent jobs and 8,000 seasonal jobs will be created (excluding project implementation employment). In addition, the Project will increase the capacity of agency staff to design and promote IEM approaches after the project. The Project will train approximately 2,200 people in technical subjects, 5,500 farmers through field schools (and more through the demonstration program for conservation agriculture), and some 3,000 rural poor in vocation training. The

Project will provide short course training and study tours, nationally and internationally. A summary is given in Table 12.

Table 12. Summary of Project Beneficiaries Activity Land Area (ha) Households Population A. Smallholder Livelihood Improvement Water Resources 15,546 15,000 55,000 Beef 1,333 6,000 24,000 Dairy 690 325 1,000 Grapes/Wine 670 1,435 5,000 Yinxi Livelihoods 12,950 9,500 49,000 High Technology 4,100 1,600 6,860 Total 35,289 33,860 140,860 (10% Project (31% of rural Area) population)

B. Employment Casual Full-Time Wine 6,000 735 Ecological Agriculture–High 2,000 800 Technology Beef 300 Total 8,000 1,835 ha = hectare. Source: Project Preparatory Technical Assistance Final Report, April 2007.

55. The interventions designed to improve rural livelihoods and reduce poverty target priority beneficiaries from the above subgroups, and will provide significant productivity improvements, cost savings, and improved service, will develop social capital, and provide access to vocational training and employment opportunities, all of which are important contributions to improving livelihoods. The smallholder livelihood improvement program aims to improve the resilience of household incomes through diversification of income opportunities and the development of skills and capacity to take advantage of these opportunities.

56. A key design feature builds on the findings of a recent ADB evaluation, which determined that poverty interventions that successfully removed people from poverty linked the poor to economic growth centers and commercial value-adding enterprises and associated off- farm employment opportunities, and that investing in poor rural communities helped the poor escape from poverty. The project design reflects this lesson by promoting (i) contract farming associated with commercial enterprises in the livestock (beef and dairy) sectors; (ii) grape and wine processing; (iii) high technology glasshouse systems, and (iv) provision of rural renewable energy programs, including the introduction of time-saving technologies such as conservation agriculture, which will provide increased opportunity for household members to participate in off- farm employment. A significant social constraint is the degree of feminization of agriculture in the poorest households, and the need to ensure that services and benefits reach women as well as men.

57. Many rural householders believe that their landholdings are too small to enable them to exit poverty, and that future improvement of livelihoods will require relocating to an urban area and taking industrial employment. The Project seeks to support existing Government programs by providing a number of opportunities for the poorest households to participate in vocational training, in order to compete for higher paying jobs and contribute to the reduction of poverty in the project area.

58. The social assessment of each of the proposed subprojects confirmed disparate growth rates between economic sectors, resulting in large income inequities between rural and urban dwellers. In 2004, rural incomes were only 50% of comparable urban incomes, creating significant incentives for urbanization. Huge disparities were also found to exist between rural communities based on their history, land and natural resources and status.

IV. ALTERNATIVES

A. With- and Without-Project Scenarios 59. Compared to the with-project scenario, the without-project scenario would see continued ecosystem decline and loss of productivity from poor agricultural and water management, and rapid growth in industrial and urban pollution. Smallholder farmers would face the need to intensify their agricultural practices still further to maintain current incomes, and would not gain market links and sustainable livelihood opportunities through contracts with established enterprises. This, in turn, would lead to more overcultivation, further loss of soil quality and water holding capacity and more desertification. Water pollution due to contaminated agricultural drainage water would continue. Important cultural sites with historical significance would not be restored and would continue to attract low tourist numbers. Lakes and waterways along the Yellow River that support habitat for endangered wild species would continue to be managed for short-term profit and conservation, also leading to low future tourism demand. The Government’s programs to combat land degradation have had environmental objectives (e.g., tree planting, grass planting) rather than livelihood or poverty reduction objectives. These sector-based approaches would continue, but only as long as the national subsidy programs continued, as the programs are not financially sustainable. Some physical environmental improvement would be made, e.g., through measures such as the grazing ban, but alternative livelihoods would be created more slowly. Ecosystem understanding would not be developed and the inhabitants of the project area would continue to apply too much water and other inputs to crops, to manage their farmlands and lakes poorly, and to be highly vulnerable to future shocks, including from climate change.

B. Analysis of Alternatives

60. No analysis of alternatives was needed for component 1. For component 2, four alternative routes for the Xixia Canal alignment have been assessed, including that originally proposed in the initial design. The major consideration in changing the alignment was to minimize the impact of the canal upon the Xixia Tombs and neighboring villages. Further survey investigation is necessary during preparation of the final engineering designs. These measures reflect the IEM approach that is being taken, and are a significant alternative to current practices that reflect sector institutional arrangements only, are not coordinated, and do not provide area- based analysis. Appendix 5 gives further details on the study of alternatives for this subcomponent.

61. For component 3, alternative ways of delivering a range of livelihoods were reviewed, including through direct government agency intervention and direct grants. But these were rejected as (i) the Government is deliberately promoting greater involvement of the private sector in agriculture and seeking to more closely align urban-based services with rural needs through the emerging new socialist policies of the Government’s 11 th Five-Year Plan; and (ii) market forces, in line with long-term ecosystem capacity, are best at determining the production mix. In Ningxia, the long distance to established markets, the finance and expertise required, and the need to add value to primary commodities through processing are factors that require isolated rural smallholders to be linked with specialist agribusiness firms. The project design has

20 also deliberately incorporated poorer rural areas with very limited access to resources and previously resettled people.

62. For component 4, alternative ways of achieving the rehabilitation of degraded grasslands and wetlands and conserving the aesthetic and cultural values of ancient buildings were reviewed. The agencies responsible for managing these fragile assets had little common understanding of the tourism market, the need for biodiversity conservation that underpins the tourism experience in many areas, or the potential to build additional employment opportunities in ways that are benign and do not exploit the natural environment. People’s appreciation for observing wild species in their natural surrounding and their willingness to pay for this experience have not been well understood in Ningxia. The responsible Ningxia officials have had virtually no exposure to the superior conservation-based tourism experience being offered in neighboring provinces (e.g., Shaanxi). It was determined that supporting the current operators (the State Farm Group and Yinchuan Municipality) in combining commercial and conservation values in their operations was the best option for altering the current situation. The component 4 design adopts this approach, and will ensure (i) an expansion of grassland habitat through an extension of the Helan Mountains Natural Reserve into the piedmont zone for habitat and other environmental services; (ii) restoration of ancient buildings and rock carvings; (iii) wetland management plans, incorporating conservation of flyway habitat for local and migrating species, and tourism and education; and (iv) conservation of flora.

V. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 63. The planned environmental benefits associated with the Project are significant. There will be significant positive impacts on both the environment of the project area and globally important biodiversity, through increases in vegetation coverage, improvements in hydrology, restoration of degraded soil and wetlands, improvements in the status of threatened wildlife, establishment of soil and wetland conservation education and awareness programs, and improvements in IEM capacity. The Project will achieve (i) efficient and reasonable use of land, water and labor resources; (ii) timely and reasonable adjustment of agricultural practices, resulting in increased enterprise productivity, increased income for both farmers and workers, and improved living conditions for people within and surrounding the project area; and (iii) rapidly improving production and quality of life through project development.

64. The introduction of IEM approaches to development will ensure effective protection of wild flora and fauna and conservation of biodiversity within project area. The demonstrative effect of the Project will contribute to increased awareness of environmental protection within and surrounding the project area, and help to generate voluntary protection of biodiversity and the environment, and facilitate sustainable social, economic and environmental development in Ningxia.

65. The protection of cultural relics (Xixia Tombs, Helankou Rock Carvings, and Jiangjun Tower) aims to preserve the integrity and unity of relics for the benefit of future generations. Appropriate displays and exhibitions that properly protect cultural relics will be built to afford the public the opportunity to learn about the social context, structure, and architecture of the former kingdom. The protection and utilization of cultural relics will be mutually supportive, and of benefit in both social and economic terms.

66. Both Component 1: Building IEM Capacity and Project Management (subcomponents A- 1 and A-2)9 12 and subcomponents B-1, B-2, and B-3 of Component 2: Land and Water

910 Refer to the subcomponent codes used in Table 1.

Resources Management are classified as category C according to ADB’s Environmental Assessment Guidelines , with no adverse physical environmental impact. All other subcomponents of components 2, 3, and 4 are classified as category B, except for subcomponent B-4 (the Xixia Canal Extension), which has been classified as category A.

67. A summary of potential environmental impacts and mitigation measures are summarized in Table 13, and are described according to the project cycle in Appendix 3. Appendix 5 provides a detailed EIA for the Xixia Canal, as it is classified by ADB as category A. In addition, the different significant adverse environmental impacts, together with the mitigation measures, are identified for each subcomponent; details are found within each SEIA or SIEE. The construction works have common potential negative impacts to soil, water, air and noise environment. A narrative summary of key points specific to each component is presented below.

A. Component 1: Building IEM Capacity and Project Management

68. No negative environment impacts anticipated.

B. Component 2: Land and Water Resources Management

69. Location, Design and Mitigation Measures. For the water resources subcomponents (B-4—Xixia Canal Extension, and B-5—On-Farm Irrigation Systems and Water Use), an improperly designed or aligned Xixia Canal may cause significant damage to Xixia Tombs. The alignment has been changed significantly during the PPTA and is now moved to the east side of main highway in the tombs area. The alignment of the Xixia Canal will be 30 m from the eastern side of the Yanshan road (Highway No. 210 along the foothills of the Helan Mountains), which is 1 km from the boundary of the Xixia Tombs core area, and within the general protection area. It is also 1.5 km from the Xixia Tombs Museum. The current alignment was selected as the least- impact option among four alternatives. As an unidentified individual tomb may exist in the area, the following mitigation measures will be undertaken during the design phase: (i) the alignment and design of Xixia Canal will minimize adverse impacts to Xixia tomb and the army base; (ii) all temporary sites will be carefully selected to avoid or minimize potential impacts to the environment and surrounding communities; (iii) mitigation measures such as compensation for occupation of land will be incorporated into the subcomponent design. See Appendix 5 for details.

Table 13: Summary of Impacts and Mitigation Measures 22

Components Subcomponents ADB Impacts Mitigation Measure (Subcomponent Environmental Identification Code) Category Component 1: Building IEM Institutional C Not applicable Building IEM Arrangements (A-1) Capacity and Project Management Effective Project C Not applicable Management (A-2) Component 2: Land Spatial Planning and C Not applicable and Water IWRM Planning (B-1) Resources Management Land Management C Not applicable Demonstrations (B-2)

Conservation Agriculture C Not applicable (B-3)

Xixia Canal (B-4) A Impact on sensitive area (Xixia Canal moved to the outer general Tombs Protection Area) protection zone within the protection area of the Xixia Tombs; will construct an inverted siphon to minimize impact on aesthetic environment

Irrigation System B Impact on water resource , soil Canal lining, water scheduling and Rehabilitation and On- salinity, construction impacts and laser leveling, IPM and SSNM Farm Water Use potential increases in agrichemical management practices introduced Efficiency Improvement use and fertilizer use via WUA (B-5) Component 3: Beef Production B Effluent from central breeding herd Central herd will use dried dung Improving Rural (C-1) and household units and bio-fertilizer. Households will Livelihoods install biogas units Sewage from slaughterhouse Central herd will use sewage treatment facility at demonstration unit. Dairy Production B Cow manure Drying and composting of dung for (C-2) sale to crop and fodder farms Cowshed waste water and effluent • The collection and

Components Subcomponents ADB Impacts Mitigation Measure (Subcomponent Environmental Identification Code) Category impact on groundwater transport of waste from 5 milking platforms to central biogas plant at Pingijipu including: • Solid separation • Anaerobic digestion • Aerobic digestion • Sludge drying Biogas production Vineyard a nd Winery B Wastewater, Sewage treatment of waste water (C-3) solid waste Solid waste will be composted gas Gas and odor will be managed through height of chimney venting Yinxi Alternative B Livelihoods Development (C-4) High technology and B Cattle effluent at central breeding Central herd to produce biofertiliser Ecological Agriculture herd and household level and biogas treatment Development (C-5) Households to install biogas units

Component 4: Yinchuan Wetland B Conservation and (D-1) Tourism Shahu Lake (D-2) B Disturbance to significant breeding Location of work in non-sensitive or nesting grounds, critical ecological area and far from the wetlands, etc. core bird habitats (at least 2 km away). Major works completed in non-nesting seasons

Water balance is disrupted Careful monitoring of water balance

Declining water quality from Waste and sanitation programs for

increased tourism and agriculture tourist sites and development and 23 in the catchment demonstration of site-specific nitrogen management

Components Subcomponents ADB Impacts Mitigation Measure (Subcomponent Environmental 24 Identification Code) Category Yinchuan Wetlands B Water quality loss from tourism, Water treatment, tourism sanitation Yuehai Lake (D-3) agroprocessing, construction programs, waste from processing industries treated, construction controls and management

Baseline surveys, zonation and Aquatic and avian biodiversity loss timing of works programs

Yinxi Conservation B Not applicable (no significant Monitoring of programs Program : Yinxi Wetland negative impacts) (D-4); Botanical Garden (D-5); Grassland Protection/ set-aside (D- 6)

Helanshan Piedmont B Potential risk to the integrity of Technologies will require prior Conservation ancient cultural relics through (i) approval by cultural relics bureau Management (D7): use of inappropriate technology and contractors with proven Cultural Relics (Xixia and (ii) poor implementation or capacity in relics restoration will be Tombs (D-9), Helankou installation of agreed technology contracted. Rock Carvings (D-9), Jiangjun Tower (D-10) Helanshan Nature Reserve (D-11)

70. Project Construction, Operation and Mitigation Measures . For subcomponents B-4 and B-5, construction activities have the potential to disturb cultural sites. The Xixia Canal alignment will pass through the Xixia Tombs site and an army base with an airport, and has the potential to cause significant damage to these sites if an improper approach is adopted. The alignment will be east of the Yanshan Road (along the foothill of the Helan Mountains), which is 1 km away from the boundary of the Xixia Tombs core area (1.5 km from the Xixia Tomb Museum, and 1.8 km from the nearest tomb). An inverted siphon culvert (15.1 km in length) will be constructed for this section, and extend past the army base, with minimal impact. Further mitigation measures include: (i) additional communications and discussions with the relevant cultural authority of Xixia Tombs and the army base are required; (ii) a cultural relic survey should be conducted along this section before construction of the reverse siphon culvert; (iii) procedures will be established so that cultural sites can be identified and protected if they are discovered during construction; and (iv) temporary land occupation will be planned well ahead of construction of the reverse siphon culvert. Subcomponents B-4 and B-5 will potentially impact the water balance because of the Xixia Canal. A detailed water requirement analysis and study, based on water monitoring, will be carried out during the implementation stage of the subcomponent. The overall demand for the Xixia Canal diversion is presented in Table 14, and predicts reduced water demand despite an increase in the irrigated area. The expected reduction in water demand highlights the importance of the proposed project’s investment in water use efficiency throughout the water use infrastructure within the Project area.

26 Table 14: Water Demand Forecast for Meili-Yaojin-Xixia and Xigan Irrigation Systems Water Demand Present Planned 2010 Planned 2020 Water Unit Water Water Unit Water Water Unit Water Irrigation Irrigation Irrigation Volume Consumption Volume Consumption Volume Consumption Area (mu) Area (mu) Area (mu) Water Use (MCM) (m3/mu ) (MCM) (m3/mu ) (MCM) (m3/mu ) Meili irrigation 337,000 465 1,380 462,000 261 565 462,000 261 565 Yaojin irrigation 185,000 232 1,254 203,800 167 819 203,800 167 819 Xigan gravity 388,000 365 941 388,000 365 941 388,000 365 941 irrigation Xigan pumped 284,200 187 658 0 0 0 0 irrigation Xixia irrigation 0 0 460,000 221 480 460,000 221 480 Industrial use 37 97 142 Total 1,194,200 1,286 Ave. 1,058 1,513,800 1,111 Ave. 701 1,513,800 1,156 Ave. 701 Difference 319,600 -175 319,600 -130 % increase from 27% -14% 27% -10% present Source: Ningxia Water Resources Department. m3/mu = cubic meters per mu; mu = land division (1 mu = 667 m 2), MCM = million cubic meters.

27 C. Component 3: Improving Rural Livelihoods

71. Location and Design and Mitigation Measures. Special analysis was conducted in the Chinese EIA report on the impact of beef cattle and cow breeding subcomponents on groundwater quality, to ensure compliance with the relevant local planning source protection zone for drinking water of Yinchuan City, and other water bodies.

72. Project Operation, Construction and Mitigation Measures. Subcomponents C1 and C2 have animal husbandry (cattle, cow and water poultry) and processing investments at various scales . The solid waste of cattle, cows and ducks and geese has potentially negative environmental impacts. Significant volumes of waste will come from the slaughtering and processing house. The dried dung technique will be used in the breeding farms to mitigate the adverse impacts. The collected waste will be used as compost on farm land. Before composting, waste will be sterilized in order to mitigate air quality and sanitation impacts in and around the area. Some of the solid waste from breeding operations will be collected and treated by a small anaerobic biogas production system, and/or then used as artificial farmyard fertilizer on farmland owned by the participating households, or to be sold to farmers living nearby. Sewage (including urine) collected after washing of the breeding farm and processing house may cause environmental pollution. The larger suspending solids, floating debris and sand will be separated and composted as described above. For subcomponent C1 central breeding and processing sites, the waste water will be discharged to the drainage pipeline and then to the sewage treatment plant or tanks. The sludge and residues will be composted. After treatment, water quality will meet the Grade II standard 10 and can be used for irrigating trees and grassland in the subcomponent area. The remaining treated water will be discharged into the natural drainage system. Sewage from contracted household cowsheds of subcomponent C1 and C2 will be washed from the cowsheds (together with any cattle dung) and then treated by an anaerobic digester in the biogas generation and utilization system. Construction of the biogas system should be completed in a timely manner, in keeping with the subcomponent implementation schedule. After treatment, the residue will be used as compost fertilizer and the liquid for irrigation of farmland or yards. Biogas will supply energy for the households. Air pollution and odor will be mitigated. Subcomponents C3 and C5 have designed different scale agroprocessing facilities, including a winery. The agroprocessing waste will have minor potential negative impacts, which are localized, short-term, not significant, and can be fully mitigated. Impacts include improper disposal of plant residues such as grape stems and skins, as well as boiler slag from the processing plants. The plant residues (e.g. grape stems and skin) should be collected and sold as livestock feed, and/or be composted as organic manure. Boiler slag will be collected and used for road repairs, and/or sold as raw material for cement making. There is no adverse impact from the reduced use of irrigation by cropping adjustment for fodder, grapes, horticulture, etc. for subcomponents C1, C2, C3, C5, and C6; the water-saving irrigation programs are expected to result in substantial improvements to water use efficiency and reduced water logging of soils.

D. Component 4: Conservation and Tourism

73. Location, Design and Mitigation Measures. Lake Shahu, Yuehai Lake and Yinchuan wetland subcomponents (D1, D2, and D3) are designed to be implemented in wetlands scattered within the Yinchuan plain. Conservation areas and critical biodiversity may be affected if sites are placed too close to significant breeding or nesting grounds and critical wetlands. To minimize the impacts the subcomponent sites are carefully selected based on consideration of

10 Specified in “ Sewage Discharge Standard for Meat Processing Industries ” (GB13457-92). 28 environmental factors (e.g. water and air resources, and distance to the significant breeding or nesting grounds, or critical wetlands). Rapid biological surveys will be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or species of economic importance.

74. Project Construction and Mitigation Measures . There is the potential for water quality reduction in critical watersheds resulting from excavation for extension of open water areas or linkage canals in subcomponents D1, D2, and D3. All excavation works should be confined to the dry season if possible, and frequent monitoring of water quality undertaken. The potential for displacement of significant flora and fauna exists for subcomponents D1, D2, and D3. Conservation areas and critical wildlife may be affected if sites are placed too close to significant breeding or nesting grounds, critical wetlands, etc. Construction will not be sited adjacent to or near (within 1 km) of significant breeding or nesting grounds, critical wetlands, etc. The potential impacts are minimal, as rapid biological surveys have been undertaken prior to subcomponent design at all sites, and the distance requirements have been followed for all subcomponents. For subcomponent D7, the resettlement and planting of endangered plants for the endangered plant zone of the botanic garden may cause loss of these plants because of their low survival rate. Any resettlement and planting of endangered plants will undergo detailed design and trials in advance of any large-scale planting activity. During the construction of cultural relics protection for subcomponent D8 and D9, appropriate technologies approved by the Ningxia Cultural Relics Bureau will be used. The proposal minimizes the risk to the relics by requiring prior approval of any technology by the Ningxia Cultural Relics Bureau, which applies certified standards as approved by the National Cultural Relics Administration, and by requiring all work to be undertaken by staff with certified expertise in relic restoration. The project intervention is expected to have a positive impact, with the limited risk that exists to sensitive cultural sites managed through the use of approved procedures; the subcomponents are classified as Category II (ADB category B).

75. Part of the proposed site of Jiangjun Tower (subpart of subcomponent D10) is currently used by the Yinchuan Branch of House Administration of the Lanzhou Military Headquarters, and another part of the land is now used by the Representative Military Office of the Yinchuan Railway Branch of the People’s Liberation Army. Ownership of the Jiangjun Tower has been transferred to Yinchuan Municipality Government, which will dismantle, relocate and restore the Tower in the new city Cultural Center at the intersection of the Beijing Road and Discharge Channel 31. The implementing agency (IA) submitted a written report to Yinchuan Municipality agreeing on rehabilitation of the Jiangjun Tower. This was granted in October 2006.

76. Project Operation and Mitigation Measures. Subcomponents D1 and D2 also have different scale animal husbandry (cattle, cow and water poultry) and processing investments. Potential environment impacts and planned mitigation measures are similar to those described in para. 72 above. For subcomponent D2 central breeding and processing sites, the wastewater will be treated in a process that includes (i) solid separation, (ii) anaerobic digestion, (iii) aerobic digestion, (iv) sludge drying and composting into biofertilizer within wastewater, sewage, and biogas plants and biofertilizer production facilities. Sewage and animal effluent of the contracted household cowsheds of subcomponent D3 will be treated through household biodigestors to produce biogas and solids for composting and biofertilizer. Subcomponents D1, D2, D3 have designed different scale agroprocessing elements. The agroprocessing waste will have minor potential negative impacts, which are localized, short-term, not significant, and can be fully mitigated. Different types of ecotourism will be developed after the construction of subcomponents D1, D2, D3, D7, D8, D9, D10 and D11. Implementation of tourism projects has the potential to result in: (i) impacts on any locally significant flora and fauna, which may be

29 displaced for development of sites; (ii) loss of wetland and vegetation for trail development and as a result of on- and off-trail activities; (iii) displacement of wildlife as a result of the presence of tourists; (iv) excessive use of local resources, in particular water; (v) localized water pollution from solid waste, sewage, and litter; and (vi) localized water and air pollution from vehicles and power boats. Mitigation measures include: (i) tourism planning and environmental guidelines developed during the earlier phase of subcomponent implementation should be strictly followed in implementing tourism projects; (ii) no development of tourism physical infrastructure (buildings, restaurants and other service facilities, roads, etc.) is allowed in sensitive core areas of the wetland; (iii) no development of physical tourism infrastructure (buildings, restaurants, and other service facilities, roads, etc.) is allowed close to significant breeding or nesting grounds, critical wetlands core zone; (iv) similar activities not related to infrastructure that support ecologically appropriate wetland tourism development; (v) all solid waste, sewage and litter will be cleaned and collected, and properly treated. In addition, a plant will be built to treat residential waste water and the treated effluent will irrigate landscaped areas. Subcomponents D1, D2, D3, and D4 have the potential to impact the water balance because of wetland and botanic garden development in the project area. A detailed water requirement analysis and study based on water monitoring will be carried out during the implementation stage of the subcomponent. Improved water allocation should ensure that the wetland’s water balance is maintained. Potential impacts to water quality, flora and fauna from the use of pesticides and fertilizers for shelter belt plantation, fodder field extension, greenhouses, aquaculture, and horticulture etc. for all subcomponents except D8, D9, D10, and D11 are minimal or non- existent. According to the survey conducted in the subcomponent area, the adjusted cropping and cultivation system needs less irrigation and fertilizer than the existing rice and wheat cropping system. Pesticide and fertilizer applications will be minimized as much as possible through the use of integrated pest management and site-specific nitrogen management technology, and pesticides will only be applied by workers who have received training in their storage, handling, use, and disposal. The Project is investing heavily in farmer education and demonstrations regarding the financial benefits of targeted fertilizer use and integrated pest management technologies.

VI. ENVIRONMENTAL MONITORING PLAN AND INSTITUTIONAL REQUIREMENTS

A. Monitoring Requirements and Indicators

77. The Project will utilize appropriately qualified monitoring service providers for environmental monitoring, and proposes to contract these through the NEPB. The subcontractors will visit intervention sites at key times to ensure that mitigation measures are being implemented, and that negative impacts are not taking place. Monitoring requirements for the main activities are presented in Appendix 4.

78. For all construction activities, appropriately qualified monitors should visit each construction site regularly during key activities to ensure that recommended mitigation measures are being implemented. Special emphasis should be given to ensuring that no construction is sited adjacent to or near (within 1 km) of significant nature reserve core zones, breeding or nesting grounds, critical wetlands, etc. Construction activities should emphasize the protection of cultural relics, especially in the area from Xixia Canal to the Xixia Tombs, and the army’s airport along the alignment of the canal.

79. For all activities with the potential to impact water quality, environmental monitors should visit the sites regularly, particularly during construction preparation, construction activities, planting, agoprocessing, and pesticide and fertilizer application. Ambient water quality should be

30 monitored in situ to ensure that adequate standards are maintained. At a minimum monitoring should include temperature, conductivity, total suspended solids, turbidity, pH, and dissolved oxygen both above and downstream of any works. The results should be compared with the Environmental Quality Standards for Surface Water (GB3838-2002) to ensure no significant reduction in water quality occurs.

80. For aquaculture and plantation activities, environmental monitors will inspect plantation plans before work commences and visit the site biweekly during operation for as long as the activity is undertaken. The monitors should pay particular attention to the mitigation measures recommended in the environmental assessments.

81. For animal husbandry activities, environmental monitors will inspect plans before work commences; all breeding sites should be away from residential areas. The monitors should visit sites according to the schedule in the project-specific environmental assessments and should pay particular attention to the mitigation measures recommended in the environmental assessments, in particular the monitoring of the treatment of animal dung and urine.

82. For agoprocessing activities, environmental monitors will visit subcomponent sites regularly according to the schedule developed in the activity-specific environmental assessments that will be undertaken before the subcomponents are implemented. The monitors will carry out air emission, wastewater, and solid waste monitoring according to the PRC's environmental monitoring regulations.

83. For the ecotourism subcomponents, environmental monitors will visit the sites according to the schedule developed in the activity-specific environmental assessments to be undertaken before any tourism projects are implemented. The monitors should pay particular attention to the mitigation measures recommended in the environmental assessments.

84. Monitoring of compensation paid for any possible land loss and resettlement should be undertaken by the environmental monitors, working with the social and economic monitors. A final report should be prepared summarizing activities, implementation of mitigation measures, impacts observed, and additional measures required. A semi-annual report on implementation of the EMP will be submitted to ADB by the Ningxia Hui Autonomous Region Finance Department of (NFD), as the Executing Agency of the Project.

B. Institutional Arrangements

1. Provincial Project Management Office

85. A provincial project management office (PPMO) will be established in the NFD, which will have responsibility for environmental management of the Project. Working under the supervision of the Ningxia EPB and the NFD, one of the key duties of the PPMO is to supervise implementation of all environmental mitigation measures and to monitor programs recommended in this SIEE. A suitable institution that has been certified by the Ningxia EPB will be contracted to undertake environmental monitoring and reporting for the PPMO. The environmental monitoring institute (EMI) will (i) monitor and supervise implementation of all project environmental requirements, including mitigations noted in the SIEE; (ii) coordinate development and implementation of the environmental compliance monitoring program, as well as liaise with provincial and local EPBs; and (iii) organize the environmental monitor training program.

86. Through the PPMO, the EMI will establish a system under which regular monitoring of the physical environment and socioeconomic impacts on the potential beneficiaries will be carried out. The EMI will also initiate establishment of computerized monitoring databases utilizing the services of appropriately qualified staff and consultants. The system will include assessment and monitoring of key indicators for measuring the success of ecosystem-based environmental protection in terms of ecological and environmental improvements.

2. Implementing Agencies

87. The sub-borrower and their supporting IA for each subcomponent is fully responsible for complying with all environmental requirements, including implementation of environmental mitigation measures specified in this SIEE, so as to ensure that all related national and provincial environmental regulations and standards are met. The IA for each subcomponent will appoint an environmental manager, who will conduct self-monitoring, and prepare a quarterly report reflecting the IA's environmental performance, and submit it to the PPMO for review. The environmental manager will also participate in the monitor training workshops organized by the PPMO and Ningxia EPB.

3. Ningxia Environmental Protection Bureau

88. Ningxia EPB will review and approve the Environmental Assessment Report of the project based on the PRC’s regulations and guidelines, and requirements specified in this SEIA. Ningxia EPB will guide and support the EMI contracted by the PPMO in establishing key indicators for measuring the success of ecosystem protection in terms of ecological and environmental improvements. Ningxia EPB, in cooperation with the PPMO, will organize training sessions for the Yinchuan Municipal EPB and IA staff on environmental monitoring.

89. The EMI will undertake the following specific tasks: (i) meet the activity site manager and discuss and review the proposed work and EMPs; (ii) inspect work activities and implementation of the environmental mitigation measures, and assess the performance of such measures; (iii) undertake any necessary in situ water quality, biodiversity and other environmental monitoring; (iv) order additional mitigation measures, if required; and (iv) prepare monitoring reports. The EMI will report the monitoring results to Ningxia EPB and the PPMO in terms of the requirements of the EMP.

C. Enforcement

90. The municipal and relevant county and/or district EPBs will supervise and report any failure to implement mitigation measures or any significant adverse environmental impacts to Ningxia EPB, the NFD, and the PPMO. The authorized Ningxia EPB or municipal and relevant county and/or district EPB will be responsible for halting activities if mitigation measures are not being implemented or if significant negative environmental impacts are occurring. Activities should not recommence until the identified problems have been adequately addressed.

VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

91. Relevant government agencies, environmental experts and media have been involved in the planning stage of the Project, and will be continuously involved in environmental assessment of each subcomponent during project implementation, based on the PRC’s procedures and guidelines and ADB’s Environmental Assessment Guidelines .

92. The interim regulation on public participation for the EIA process, promulgated by the State Environmental Protection Administration (SEPA) on February 2006, requires: (i) information disclosure, particularly through media and Internet posting; (ii) public consultation, via questionnaire surveys, expert meetings, consultation meetings with stakeholders or public hearings. For Category I projects that require an EIA, two rounds of consultations are required by this regulation. Under the PRC’s environmental laws the Ningxia EPB must either make two Internet postings or hold two public workshops to review the Project.

93. Five methods have been used to ensure effective public consultation and information disclosure: (i) Internet postings; (ii) interviews with environmental nongovernment organizations (NGOs); (iii) informal meetings (for the Yuehai Wetland, subcomponent D-2); (iv) stakeholder surveys and questionnaires administered by the PPTA environmental and social assessment team; and (v) a second round public consultation meeting for the only category A subcomponent, the Xixia Canal extension (B-4). In addition, interviews and meetings have been held with relevant government agencies by the Ningxia Environmental Sciences Design and Research Institute1112and PPTA environmental assessment team. During the design process direct consultations were also held by the PPTA biodiversity team and environmental assessment and social assessment team, using workshops, group discussions, and household interviews:

(i) Internet Postings

94. Once the draft EIA was produced it was posted on the Internet for a total of 4 weeks (for 2 weeks beginning 15 November 2006 at www.nexp.gov.cn , and for 2 weeks beginning 25 December 2006 at www.nx.gov.cn ). No comments were received after either Internet posting.

(ii) Interviews with Environmental NGOs

95. Two NGOs involved in environmental protection—the Ningxia Association of Environmental Protection Volunteers (NAEPV) and the Ningxia Environment Federation—were interviewed by the PPTA environmental assessment team. The Ningxia Environmental Sciences Design and Research Institute invited three members of NAEPV to participate in field inspections of some subcomponent sites, and collected their opinions on the project.

(iii) Yuehai Wetlands, Informal Hearing

96. An informal public hearing was organized for Yuehai wetland subcomponent (D-2) by Ningxia EPB, supported by the National Democratic Institute for International Affairs as part of the development of public consultation procedures for the EIA. The hearing is a case study of the training program of public participation for EIAs in the PRC’s northwest region, which was held by Ningxia EPB from 14 to 15 July 2006. For details see the separate Yuehai Wetland SIEE.

(iv) Stakeholder Surveys

97. A stakeholder survey was completed by the Ningxia Environmental Sciences Design and Research Institute. The survey included multiple-choice questionnaires for each evaluated subcomponent, and an additional questionnaire for the entire Project was prepared and a survey conducted from 15 November to 1 December 2006. Table 15 shows the number of

11 Contracted to complete the preparation of the environmental assessments for the NHAR.

33 questionnaires distributed to people concerned with each subcomponent and those living near the subcomponent areas, as well as the number of valid returns that were received.

Table 15: Stakeholder Questionnaires Distributed and Returned

Type in Chinese EIA Subproject Distributed Returned Water resources Xixia Canal and Irrigation System 100 91 Rehabilitation Ecological, wetland Lake Shahu and biodiversity 30 30 protection Yinchuan Wetland 30 30 Yuehai Lake 30 30 Botanical Garden 50 — Ecological industrial Yinxi Alternative Livelihoods 50 45 development Vineyard and Winery 100 83 High Technology and Ecological 100 83 Agriculture Dairy Production 100 94 Beef Production 100 80 Cultural relics Cultural Relics (Xixia Tombs, Helankou, 40 38 protection Jiangjun) For the Project overall 50 50 — = data not available, EIA = environmental impact assessment. Source: Ningxia Environmental Sciences Design and Research Institute.

98. The survey responses indicated the following:

(i) the main means of gaining information on projects was the newspaper, followed by the radio and the Internet; (ii) 98% of respondents report that they believed the Project would provide significant economic benefits; (iii) 10% of respondents remained unclear on all aspects of the Project while approximately 51% were mostly clear and felt they understood the Project; (iv) 99% of the respondents felt they were clear about the environmental issues being addressed in the project with 30% reporting a lack of vegetation and another 30% reporting shortage of water resources, while a further 26% and 15% listed desertification and salinity respectively as the main environmental problems being addressed; (v) 79% reported that pollution in the project area effects their quality of life to a large extent, while a further 37% reported some effect, and 21% felt pollution had no effect on their quality of life; (vi) 87% of respondents reported that the Project would positively affect the quality of water resources; (vii) 61% of respondents believed that the Project construction would create no noise and/or sound impact; and (viii) 82% reported significant positive ecological impacts associated with the project.

99. The conclusion from the returned survey questionnaires was that stakeholders in the project area perceived and reported that they expected to receive positive benefits from the

Project. The views expressed were largely consistent with the assumptions that underpin project design.

(v) Second round public consultation meeting for the Xixia Canal Extension

100. On 26 April 2007, the Ningxia Water Resource Department (WRD) held a public consultation meeting on the EIA for the water resources subcomponent (B-4). The meeting was attended by 36 people, including three representatives of families with graves that would need to be relocated. The Ningxia Government Foreign Debt Administration Office, Ningxia WRD, NEPB, Ningxia Environmental Science Design Institute, Ningxia Culture Relics Bureau, Ningxia Hydrology & Hydropower Design Institute and the related water conservancy bureaus, and representatives from Minning Township Government, Pingjipu Farm, Huangyangtan Farm and other beneficiary townships, farms and families attended.

101. Meeting participants were informed about construction of the Xixia Canal extension and its possible environmental impact. Most people stated that lack of water was the main issue contributing to poor economic performance. They also pointed out that other problems, such as sandstorms, low vegetation coverage, and soil salinity, would also be addressed via the subcomponent.

102. Several key questions (highlighted) and answers follow.

(i) What kind of effect will the subcomponent have on your quality of living? An equal number of people thought there would either be a big improvement or a general improvement in the quality of life. Several people thought there would be basically little change in their quality of life.

(ii) Will there be a positive or negative local impact? The responses included: (a) It will guarantee the water supply for Helan Mountain’s piedmont zone, which will be good for vegetation coverage. (b) The irrigation area will be turned into a gravity fed irrigation system and replace the current pumped irrigation, which will reduce the cost of power. (c) It will support sustainable development of tourism and adjust the farming structure. (d) It can resolve the issue of local surplus labor and improve local farmer’s income for rapid development of the local economy.

(iii) For those affected by land acquisition, resettlement or grave relocation, are you satisfied with the compensation standard? The responses include: (a) The affected people include those of Qingtongxia Daba Township, Sankeshu Village, Zhenbeipu Township of Xixia District, Pingjipu Farm, Huangyangtan Township. All were satisfied with the compensation standard.

(iv) What impact will Xixia Canal construction have on the Helan piedmont zone of the mountain? (a) There will be positive impact on agriculture production and reduction in irrigation costs. (b) The irrigation system will be transformed from pumping irrigation to gravity-fed irrigation. (c) Xixia Canal construction will reduce the use of groundwater for irrigation.

(v) During construction, will there be serious problems? (a) The construction should pay attention to cultural protection as the canal passes through the general protection area of Xixia Tombs. (b) The vegetation on the permanently occupied land will be destroyed and it could temporarily cause water and soil losses. (c) The construction period will cause temporary transportation inconveniences. (d) The canal excavation will cause dust and noise.

(vi) After Xixia Canal is constructed, how should it be maintained and used? (a) Strengthen the management and maintain the canal to ensure the normal operations. (b) A part of water charge could be used will be used to maintain Xixia Canal by the Ningxia WRD.

(vii) Other suggestions? (a) Careful coordination of the environmental rehabilitation and the protection of historical & cultural relics is needed to minimize adverse impacts. (b) The construction of the project should be people-centered and realize coordinated development. (c) Implement as soon as possible to control the occurrence of sandstorms and tempests . (d) Expect that after the implementation of the project the on-farm water price will be reduced as electricity use will be reduced.

103. Consensus was reached about the positive impacts that are anticipated. With respect to the overall project, a public participation plan is to be designed during implementation to promote active participation. This will also support monitoring and evaluation, help motivate the public to develop a sense of ownership, and build capacity to continue with the Project after external funding has ceased.

VIII. FINDINGS AND RECOMMENDATIONS

A. Results of Environmental Assessment

104. Four components with 17 subcomponents are proposed for the Project. The results of safeguard screening indicated that 11 of the subcomponents were classified as environmental category B, 1 as category A and another 5 as category C, according to ADB’s Environmental Assessment Guidelines . The results of the environmental assessment indicate that the initial environmental classification of the subcomponents is appropriate. The overall environmental benefits of the Project are expected to be significant.

105. The Water Resource Xixia Canal extension subcomponent is classified as ADB Category A, reflecting the sensitivity of the Xixia Tombs protection zone. To minimize any impacts several realignment options have been reviewed. The original alignment passed through the core protection zone and was not approved. The second alignment option passed through the priority protection zone and was considered to be inappropriate. The proposed alignment now passes through the wider general protection zone where development is allowed provided sufficient precaution is taken in implementation. The potential significant negative environmental impacts are mostly associated with Xixia Canal construction activities. The major

36 environmental concerns involved the protection of cultural relics (Xixia Tombs) and maintenance of the water balance.

106. A separate SEIA and consolidated EMP have been prepared for the water resources subcomponent. The main findings are:

(i) The overall environmental benefits of the subproject are expected to be significant. The subproject will result in greater water availability through increased efficiency of water supply, distribution and use. The increased water supply capacity provides a guaranteed source of water to the wetlands and also provides for alternative water uses in the Project area. It will achieve efficient and reasonable use of land and water resources. The improvements in water use efficiency and related ecosystem benefits will promote socially and economically sustainable development. The increased water use efficiency will also reduce the risk of secondary soil salinization.

(ii) The potential significant negative environmental impacts are mostly associated with the construction of Xixia Canal and the distribution system.

(iii) The major environmental concerns centered the protection of cultural relics (Xixia Tombs) and maintenance of the water balance. The detailed assessment indicates that the subproject will not increase the demand for surface water from the Yellow River.

(iv) For protection of Xixia Tombs, the alignment has been moved to the east, in the general protection zone for the Xixia Tombs, and will pass along the eastern side of Yanshan Road.

(v) A 15.15 km reverse siphon culvert will be constructed for the section through the tombs protection area and the extend past adjacent army base to minimize impacts to the aesthetic environment of the Xixia Tombs. Before final approvals will be provided further communications and discussions with the Xixia Tombs cultural authority are required.

(vi) Temporary land occupation will be planned well ahead of construction.

(vii) Before construction of the reverse siphon culvert, a cultural relics archeological survey will be conducted along this section. Procedures will be established so that cultural sites can be identified and protected if they are discovered during construction. Although only small individual tombs are present in the general protection area, if any large or significant tombs are discovered, the routing of Xixia Canal will need to be changed.

(viii) The adverse impacts generated by the subproject will be avoided or reduced to acceptable levels by taking appropriate mitigation and compensation measures. The main measures include: (i) careful selection of the Xixia Canal alignment and associated construction sites to avoid sensitive locations; (ii) control of noise, dust, and wastewater releases during construction; (iii) soil erosion control during earthworks; and (iv) landscaping after completion of the subproject.

107. According to the SEIA, several rural livelihood subcomponents (e.g., C1, C2, C6, and D2) incorporate various scale animal (cattle, cow and water poultry) husbandry and processing elements, which may cause significant adverse impacts if the resultant wastewater and solid waste are not treated properly. These issues have been emphasized in the separate SIEE for each subcomponent, with the recommendation that solid waste be dried and converted into biofertilizer or composted for sale. The SIEEs also recommend that waste water be treated through a process of (i) removal of solids, (ii) anaerobic digestion, (iii) aerobic digestion, (iv) sludge treatment, and (v) discharge to drainage canals at water quality grade V or better. For small rural households livestock waste would be treated through biogas digesters and the solids used for composting and fertilizer. These proposals are included within the final design used for the feasibility study.

108. For subcomponents D1, D2 and D3 there is the potential for disruption of significant wetland flora and fauna during both the construction and operation stages. These significant issues have been emphasized in the separate SIEE for each subcomponent, which specify mitigation measures such as zonation, avoiding nesting grounds and monitoring of biodiversity.

109. Based on the SEIA and 11 SIEEs, all main activities have the potential for negative environmental impacts. These impacts have been assessed in detail and summarized in this overall SEIA. With the application of the recommended mitigation measures noted in this SEIA, the potential negative environmental impacts associated with the project can be reduced to the point that no potentially significant residual environmental impacts remain.

B. Recommendations

110. The overall assessment of the project subcomponents indicates that they are not likely to result in significant negative impacts. Implementation of the mitigation measures recommended in the overall SEIA and the SEIA/SIEEs should ensure that the activities do not result in any significant negative environmental impacts.

111. The existing environmental assessments will be reviewed and, if necessary, updated based on the final engineering designs completed during project implementation (see Table 16).

112. Further environmental examinations are not considered necessary prior to approval of the feasibility study. During project implementation, (i) all mitigation measures identified and recommended in the SEIA/IEEs must be adopted, (ii) the public participation plan should be fully adopted , and (iii) all aspects of environmental monitoring and institutional arrangements specified and recommended in the SEIA/IEEs will be implemented.

Table 16: Subcomponents Requiring Final Engineering Designs

Components and Key Subcomponents Requires Final Activities (Subcomponent Engineering Identification Code) Design Component 1: Building IEM Building IEM Institutional Arrangements (A-1) No Capacity and Project Management Effective Project Management (A-2) No

Component 2: Land and Spatial Planning and IWRM Planning (B-1) No Water Resources Management Land management demonstrations (B-2) No

Components and Key Subcomponents Requires Final Activities (Subcomponent Engineering Identification Code) Design Conservation Agriculture (B-3) No

Xixia Canal (B-4) Yes Irrigation System Rehabilitation and On-Farm Water Use Efficiency Improvement (B-5) Yes

Component 3: Improving rural Beef Production (C-1) Yes livelihoods Dairy Production (C-2) Yes

Vineyard and Winery (C-3) Yes

Yinxi Alternative Livelihoods Development (C-4) Yes

High technology and Ecological Agriculture Yes Development (C-5)

Component 4: Conservation Yinchuan Wetland (D-1) Yes and Tourism Lake Shahu (D-2) Yes

Yuehai Lake (D-3) Yes Yinxi Conservation Program : No Yinxi Wetland (D-4); No Botanical Garden (D-5); Yes Grassland Protection/ set-aside (D-6) No

Helanshan Piedmont Conservation Management Cultural Relics Bureau to (D7): Cultural Relics approve final proposal - Xixia Tombs (D-9), including technology and - Helankou Rock Carvings (D-9), approach not Ningxia - Jiangjun Tower (D-10) EPB. - Helanshan Nature Reserve (D-11) No EPB = Environmental Protection Bureau; IEM = integrated ecosystem management; IWRM = integrated water resource management. Note: Once engineering designs are complete the Ningxia EPB will attend the review meeting called by PDRC and if the design is consistent with the environmental assessment no further assessment is required. If Ningxia EPB raises an objection, Ningxia EPB can require changes to the design based on the original approved Chinese Feasibility Study.

113. In addition to the overall SEIA, each subcomponent will be required to follow the recommended mitigation measures and monitoring addressed in detail in the separate EIA/IEE and SEIA/SIEE reports.

C. Conclusions

114. The overall classification for ADB environment policy is Category A, due to the potential impact of the Xixia Canal extension. The analysis undertaken in the overall SEIA, together with the separate EIA and IEE reports, indicates that the proposed Project will have a significant positive environmental impact. Potential negative environmental impacts associated with some subcomponents have been identified and can be mitigated to the point that there are no potentially significant residual environmental impacts. Appropriate mitigation measures have been identified, and an environmental management and monitoring plan developed.

Appendix 1 39

DETAILED DESCRIPTION OF PROJECT COMPONENTS

A. Component 1 : Building Integrated Ecosystem Management Capacity and Project Management

1. Under this component an integrated approach to ecosystem management will be developed. It is essential that overall project management be included in this first component to institutionalize integrated ecosystem management (IEM) and bring guidance from the high-level Lead Group that represents the stakeholder agencies.

1. Building IEM Capacity

2. Three aspects will be covered: (i) strengthening the policy, legal and regulatory framework; (ii) training and capacity building, and (iii) information systems and monitoring.

(i) Strengthening the policy, legal and regulatory framework .1 To enable the implementation of an IEM approach the following will be covered (i) establishing the principles of IEM, including coordination and public participation; (ii) water resource zoning; (iii) spatial planning for land and water use regulations according to ecosystem capability; (iv) creation and management of the Helan Piedmont Conservation Management Area; (v) control of pesticide and fertilizer usage to reduce nonpoint source pollution; (vi) a water pricing mechanism to support water trading in Ningxia; (vii) management of wetlands; (viii) revenue- sharing arrangements for enterprises operating cultural or tourism sites; (ix) community-based tourism; (x) small farmer contractual farming arrangements (xi) legal recognition of rural farmers associations and water user associations, including contract services; and (xii) data-sharing provisions. With the assistance of specialist consultants, concept papers and draft regulations will be prepared for approval by the Ningxia Hui Autonomous Region (NHAR) government. (ii) Training and capacity building . Increased coordination and integration will be developed through cross-sector planning sessions that design and implement integrated spatial planning (Output 2). Training, study tours and postgraduate study opportunities will be provided to build institutional capacity, develop skills and provide vocational training in the rural community. Based on a training needs assessment, training will be delivered by specialist consultants and through qualified training institutions. 2 Short term domestic training courses and materials will be developed by training consultants. Awareness-building study tours will expose senior and middle-level managers to IEM concepts and applications. Overall, 50 persons will be included in study tours over four years. A total of 60 persons representing stakeholders will visit various programs and approaches throughout the People’s Republic of China (PRC), including other IEM projects. 23International postgraduate study opportunities, based on the training

1 The Project’s work will complement and build from the Ningxia-wide policy and regulatory framework reforms that have commenced under TA 4357(G)/4358-PRC: Technical Assistance to the People’s Republic of China for the Capacity Building to Combat Land Degradation Project. Improved land tenure and water rights arrangements for rural households are among the benefits coming from the proposed reforms. 2 Possible destinations include: Hong Kong for wetland management and conservation based tourism, Qinghai for ecological management of land and natural resources, Inner Mongolia for fodder, silage and livestock production systems, Heilongjiang for conservation agriculture in dryland agriculture, and the Beijing district for the World Bank-financed (i) Gansu and Xinjiang Pastoral Development Project (OP12) and (ii) Loess Plateau Watershed Rehabilitation Project.

40 Appendix 1

needs assessment, will be available in wetland conservation, biodiversity conservation and ecological research, ecological monitoring and research, conservation agriculture, and land use planning. The provincial project management office (PPMO) and stakeholder Lead Group will agree on candidate selection criteria with the Asian Development Bank (ADB). National-level postgraduate training is proposed for a total of 13 positions at master’s or doctoral level in wetland management, wetland conservation, water use efficiency, integrated water resources management (IWRM), ecotourism, conservation agriculture (CA), marketing and market chains, economic analysis, applied econometrics, ecology, and biodiversity assessments. (iii) Information systems and monitoring . The Project will support development of the operational capacity of the provincial IEM information center that will be based in the Ningxia Finance Department (NFD). All agencies represented on the PPMO and Lead Group will have access to ecosystem-relevant data through a signed data sharing agreement. The public will also have free access to the data through a web-based portal. The ongoing monitoring and evaluation methods being developed under the Capacity Building to Combat Land Degradation project 34will be used. Agreements to ensure use and analysis of data from service providers, including the Ningxia Remote Sensing Centre, OP12 Land Degradation Data Centre, and Ningxia University, will also be signed.

2. Project Management

3. The provincial project management office (PPMO) will be established under the Foreign Debt Office within the Ningxia Finance Department (NFD). The PPMO has a dual role of being the office for the Lead Group and responsible for overall project implementation. The PPMO will be responsible for overall planning, coordination of work plans, financial management, technical support, stakeholder agency coordination, and reporting. In addition the PPMO will be responsible for implement parts of the Project’s activities, including (i) IEM institutional strengthening, including preparation of the Helan Mountains Piedmont Conservation Management Area management plan; (ii) spatial planning; and (iii) through the concerned stakeholder agencies, coordination of arrangements to demonstrate new technologies for land management using conservation agriculture. The Project will provide salaries and operating costs for the PPMO, including sector staff and a group of 10 technical experts. Training will be provided in procurement, finance management, disbursement, work planning and reporting.

B. Component 2: Land and Water Resource Management

4. The objective of the component is to demonstrate integrated planning systems, improved land management practices and to improve water use efficiency and ecosystem rehabilitation to promote socially and economically sustainable development. Water will be more efficiently supplied, distributed and used for agriculture and wetland rehabilitation. There are four subcomponents:

(i) Part 1: Develop a Spatial Plan for the Project area and an Integrated Water Resource Management (IWRM) Plan. The spatial planning will undertake the following activities (a) collation of existing and historical baseline data; (b)

3 1 34 ADB. 2004.Technical Assistance to the People’s Republic of China for Capacity Building to Combat Land Degradation. ADB. 2004.Technical Manila. Assistance to the People’s Republic of China for Capacity Building to Combat Land Degradation. Manila.

Appendix 1 41

completion of local participatory planning to identify resources, resource use, and impacts; (c) planning workshops; (d) preparation of a zoning plan with management rules; (e) preparation of maps and the integration of spatial planning with sector plans. For the IWRM, the following activities will be undertaken (a) develop a ground and surface water monitoring network with data loggers; (b) groundwater modeling; (c) a water balance study; (d) a soil salinity study and mapping; and (e) an IWRM planning process to define an initial draft IWRM plan, with an ongoing agenda for filling data gaps, plan revision, and adaptation. Capacity building will include study tours and training. Training of farmers in water use efficiency practices will be made through the existing water user association networks, in conjunction with the Water Resources Department (WRD). New monitoring equipment for monitoring groundwater levels and quality will be procured and will include automatic water level stations and handheld field monitoring equipment. (ii) Part 2: Extension of the Xixia Canal. The existing Beigan water supply canal will be extended for 31.1 km in the project area, between the Xixia Tombs and the Suyukou road, and will be known as the Xixia Canal. There are 38 canal buildings, including one recession gate, one control gate, 13 flood carrying aqueducts (flumes), 6 six road bridges, one rail bridge, and eight inlets linking the secondary canal level and lateral canal level. In addition, a 15.44 kilometer (km) length of reverse siphon culvert will be constructed along the Xixia Tombs area and the air base of Lanzhou military area. The original alignment of the canal has been shifted further east to minimize impact on the Xixia Tombs buffer zone and to avoid impacting village infrastructure. (iii) Part 3: Rehabilitation of the Xixia Irrigation Scheme. The subcomponent will support the conversion from pumped to gravity-feed irrigation and will also rehabilitate the irrigation scheme to increase water use efficiency. It will support the lining of secondary canals (118.8 km), 21.3 km of new secondary canals, laterals and farm distributors (623 km), as well as supporting control structures and flumes for monitoring purposes. Laser leveling of the land will take place and irrigation will be modified to border-check (bay), low-pressure pipe, sprinkler and hose irrigation. (iv) Part 4: Conservation Agriculture Demonstrations, Farmer Field Schools, and Fertilizer Management Demonstrations. The subcomponent will implement a farmer-based program to introduce (a) farm management practices that increase water and fertilizer efficiency, and (b) ways to restore soil quality and land productivity. The farm-based innovations will add to the efficiencies gained from the new Xixia Canal and associated rehabilitation of the secondary and lateral distribution system. The technologies will include CA, water use scheduling and nutrient management programs implemented through water user associations using a farmer school program. CA demonstrations for smallholders will be undertaken at three sites, and will include crop residue mulching, minimum tillage, crop rotations, and improved pest and plant nutrient management. 45 Work will build on existing Ningxia Department of Agriculture demonstrations to increase the adoption of CA outside the State Farm areas through a farmer school program. The Project will train trainers for farmer field schools and then work through existing farmer associations and rural

45 The three sites are (i) Zhengshaqu village in Yongning County (for spring corn trials), (ii) Tongchang village, in Helan County (trials for inter-cropping of winter wheat and silage), and (iii) Xiaodianzi village in Pingluo County (trials for spring wheat and corn). This last site is related to the nitrogen management trials at Shahu Lake.

42 Appendix 1

cooperatives. The farmer field schools will have linkages to machinery cooperatives and the State Farm to enable smallholders to access the necessary farm equipment. An action research program will to apply site-specific nitrogen management and the economic use of fertilizer within the Lake Shahu catchment. A nitrogen balance model will be developed to define nitrogen crop demand, fertilizer placement technologies, and the introduction of nitrogen stripping practices through reed bed management. Soil and water testing will be included within an intensive monitoring program that involves land users and farmer field schools.

C. Component 3: Improving Rural Livelihoods

1. State Farm

a. Beef Production

5. The component will develop a positive synergy between ecology and industry. The objective is to (i) support transformation of the agricultural structure; and (ii) through sustainable development of beef cattle breeding, to improve breeding technology and management and promote a “Company + Science & Technology + Base + Households” (as referred to in the PRC) pattern to build a modern beef cattle breeding base. There are five integrated parts:

(i) Part 1: Central Beef Cattle Breeding Herd. The subcomponent will establish a 1,500 cow central breeding herd in Nuanquan Farm, with advanced breeding systems to maximize genetic improvement with an annual output of 337 heifer calves. It includes 12,280 square meters (m2) of supporting building construction, purchasing of one set of artificial insemination instruments, one set of embryo transplantation instruments and, one set of epidemic disease diagnosis instruments. (ii) Part 2: Rural Household Beef Cattle Breeding Units. Develop rural household beef cattle breeding and reproduction bases in Nuanquan Farm, Qianjin Farm, Nanliang Farm, Helanshan Farm, Huangyangtan Farm, Yuquanying Farm, Yinchuan Forest Farm and the resettlement area along the eastern piedmont of Helan Mountains. The smallholder breeding herd will be 36,000 head, involving 6,000 households through the State Farm Enterprise, which contracts households for breeding and fattening. The contracted households include both those that currently have beef cattle, and households with no existing cattle. The households will purchase initial breeding stock using commercial credit sources supported by a bank guarantee provided by the State Farm that will finance the interest costs to provide a greater incentive for smallholder participation. (iii) Part 3: Beef Cattle Fattening Demonstration. A beef cattle fattening demonstration feedlot will be constructed in Nuanquan Farm with 800 head outturn capacity. It includes 3,460 m2 of supporting building construction, and related water supply, heating, electricity and sanitation infrastructure, and 16 units and/or sets of relevant equipment. (iv) Part 4: Beef Cattle Slaughterhouse. A Halal-certified beef cattle slaughterhouse will be constructed at Nuanquan Farm in the State Farm Modern Animal Husbandry Ecological Park, with an annual throughput of 30,000 head and a beef output of 6,870 tons per year. It includes a total construction area of 2,528 m2 and 338 sets and/or units of relevant equipment.

Appendix 1 43

(v) Part 5: Capacity Building. The subcomponent will provide technical training to both technicians and farmers within the project area on agronomy, animal husbandry and veterinary medicine, food engineering and economic management.

b. Dairy Production

6. The subcomponent will assist the Pingjipu Dairy Farm develop five new dairy parks, each catering to the dairy herds of 50 households, which in total will increase their herd size to 2000 cows. Over 6 years household herd size will increase to an average of 40 head, with 28 milking cows each, and average productivity will increase by 7% from 7,000 to 7,500 kg per year. As well as providing space, the Pingijipu Dairy company provides technical (breeding and feeding) and veterinary services to improve the quality of the herds and their output. Grouping households together provides significant benefits for milk processors, who pay a premium for being able to collect large volumes of milk at one location. The project will generate incremental milk production of 23,800 tons per year.

7. The subcomponent consists of four integrated parts:

(i) Part 1: Dairy Farm Construction and Operation. The subcomponent will establish five dairy farms within the Pingjipu State Farm. Four adult cowsheds, one backup cowshed and one calf cowshed will be built at each breeding and reproduction farm, plus one large mechanical milking station and relevant management equipment and facilities. Each cowshed will have an area of 2,000 m2. There will be 150 m between cowsheds. A zone will be provided for adult and replacement cows. Each farm will be equipped with a set of milking equipment. Other facilities such as an office, service station, separation, gate and fodder warehouse will be constructed for each dairy farm. The subcomponent will support a total of 10,000 cows, comprising 7,000 milking animals, 3,000 replacement heifers and yearling calves. A small anaerobic biogas production system will be established for each household, to treat the dairy effluent. (ii) Part 2: Cow Reproduction Program. Each herd will develop a standardized breeding system including genetic improvement through the commercial application of embryo transplantation, and artificial insemination will target productive traits linked to milk yield, milk quality (per cent fat, per cent protein, and somatic cell counts). (iii) Part 3: Fodder Base Improvement. The fodder planting area will be extended from 16,000 mu 5 6 to 35,000 mu for silage corn, maize and alfalfa. The subcomponent will improve feed production systems and feed mixing through direct chop and double chop silage technology, which is to be used on 10,000 mu of alfalfa and maize. (iv) Part 4: Capacity Building . The subcomponent will provide technical training to both technicians and farmers within the project area. The subcomponent will also support the development and provision of technical and veterinary services to address ongoing animal health issues.

56One mu = 667 m 2.

44 Appendix 1

c. Vineyard and Winery

8. The subcomponent will establish 667 hectares (ha) of vineyards and construct a winery of 5,000 tons per year. The objectives of the subcomponent includes: (i) development of successful local industries using a scientific approach; (ii) introduction of modern operational practices to coordinate production and ecological development; and (iii) realization of the goal of high output, high efficiency, high quality and ecological safety. The project will aim to promote industrial upgrading, increased rural income and improvement in people’s living conditions, and to contribute to local poverty reduction and economic development. The subcomponent consists of three integrated parts:

(i) Part 1: Vineyard Development. The subcomponent will establish 667 ha of vineyards at the Yuquanying and Huangyangtan Farms in the eastern piedmont of Helanshan over a 2-year planting program. The vineyards will be established by Ningxia Xixia King Grape Industry (Group) Co. Ltd (NXK), and will then be leased to contract smallholder growers in 7 mu blocks. The subcomponent will support trials to assess erosion mitigation and water use efficiency through intercropping, straw mulching and drip irrigation to add new aspects to the current green food label associated with NXK grape production. Vines begin yielding in the third year after planting, and reach maximum managed yields by the fifth year. Total grape production will be approximately 8,000 tons per year. (ii) Part 2: Winery Development. The subcomponent will construct a winery of 5,000 tons output per year with advanced technology production systems including fermentation and bottling technology. The winery will be constructed to process vineyard output and will be financed by the State Farm. (iii) Part 3: Technical Services Unit. The vineyard and winery will be supported through the establishment of a technical services unit that will provide advice, training and testing services. The technical services unit includes 200 m2 of infrastructure construction and testing equipment. Training, research and development will be supported by the Ningxia Agricultural University and by integration throughout the NXK.

2. Yinchuan Municipality Yinxi Alternative Livelihoods.

9. Yinchuan Municipality Conservation Forest Management Office is located in the area between Highway 110 and the Xigan canal, where a major land use research program has been underway for a number of years. The program has successfully established trials of different crops using technologies such as drip irrigation. As a result of these trials, crops can be matched to soils and land capability. These crops and technologies will be extended by the subproject across 10,600 ha, of which 9,800 ha will be tree crops and pasture and 800 ha will be a nursery area. Crops to be planted include Chinese dates (1700 ha.), wolfberry (1500 ha), table grapes (1500 ha), fruit mulberry (1200 ha), Mongolia oblate peaches (1200 ha), medicinal herbs (e.g. honeysuckle,1000 ha) and improved pasture/alfalfa (1700 ha). Drip, riser or sprinkler irrigation will be established through the entire area in order to increase efficiency of water use and reduce production costs; shelter belts 3–5 m wide will be established around tree crops.

(i) Part 1: Alternative livelihoods. The subcomponent will support improved livelihoods through more ecological forms of agriculture on 9,800 ha in the lower piedmont or transition zone. It will shift land use from current cash cropping to ecological agriculture involving the planting of perennial plants, including the production of 5,900 ha of plants such as grapes, wolfberry, Chinese date and

Appendix 1 45

mulberry, 1,700 ha of alfalfa, 2,200 ha of Chinese medicinal plants and Prunus mongolica Maxim. Shelter belts 1,175 km in extent, comprising a range of indigenous plants, shrubs and trees planted in strips, will be established as biodiversity corridors. Five nurseries totaling 800 ha will be established through the lower piedmont to produce and sell the planting materials for the economic crops. The Yinchuan Municipality will develop the economic crops and will then contract these to existing rural households in 3 to 5 mu plots. (ii) Part 2: Management and Support Services. The subcomponent will develop a range of support services to support investment in alternative income generation. These services will include (i) systems and husbandry practices to reduce water use (water-saving irrigation systems and practices), (ii) provision of fire control services and capacity, and (iii) introduction of agricultural machinery, nursery propagation equipment, and office space. (iii) Part 3: Training and Capacity Building. The subcomponent will finance a range of training inputs including (i) vocational training workshops, (ii) provision of study tours, (iii) provision of technical training, (iv) farmer schools, and (v) expert group management.

3. High Technology, Ecological Agriculture

10. The subcomponent will support a commercial entity to develop ecological agriculture on 10,000 mu, with value chain linkages to the poorest rural communities within a previously resettled area of the eastern Helanshan piedmont. On the basis of protective utilization and industrial development in the project area, the objectives of the subcomponent are to: (i) upgrade sustainable development capacity, (ii) enhance biodiversity and the local ecology, (iii) upgrade the agricultural production capacity, and (iv) upgrade access to and utilization of science and technology and appreciation of culture by the poor through their general participation in the project construction, so as to accelerate rural economic development. The subcomponent consists of five integrated parts:

(i) Part 1: Ecological Agriculture Demonstration Park. The subcomponent will establish a 5,000 mu ecological agriculture demonstration park, including 200 ecologically integrated production units that will be leased to poorer households. The units each include passive solar housing, a solar water heater, a greenhouse with micro-irrigation, a mushroom house, 10 breeding cows, a cattle stockyard, and incorporate digester biogas technologies. Another 4,000 mu of fodder intercropped with perennial tree crops in the demonstration park. (ii) Part 2: Demonstration of High Technology Agriculture. The subcomponent will construct a 50,000 m 2 propagation unit to develop new vegetable and flower planting materials for rural communities. It will construct a demonstration base with computerized greenhouses, water-saving precise micro-irrigation, biological engineering and the production of melons, fruits, vegetables and flowers. (iii) Part 3: Beef Cattle Fattening Farm. The beef fattening unit will supply approximately 4,000 head per annum for slaughter and marketing and will source store stock from 5,000 head of breeding stock (comprising the 2000 head owned by the 200 ecological households, and the 3,000 head from the 600 rural households with that have five breeding cattle each). Store stock will be supplied to the fattening unit/feedlot for finishing and subsequent supply to consumers. Cattle feed will include alfalfa and contract-grown fodder; foder and alfalfa growing will be supported through the Project. The feedlot will also be supported

46 Appendix 1

with both an intensive feed-mixing plant and a supporting biogas and organic waste treatment plant that will produce organic fertilizer. (iv) Part 4: Supporting Infrastructure and New Energy Sources. Site infrastructure includes: a. site drainage systems with 8 km of drainage within structures, including the feedlot, glasshouses, and production/processing plant. b. Wider site drainage requiring a total of 14 km of piped drainage systems. c. Telecommunication cabling (12 km). d. Electricity supply to the 200 ecological households involving 5 km of cable, 2 – 500 kva transformers and one 300 kva transformer. e. Main access roads include a total of five km on the existing eastern site and a further three km on the eastern site. A further four km and six km of feeder or secondary roads are required for each site. f. Irrigation will be provided for the perennial tree crops on 267 ha that is under-planted with alfalfa. The water is currently drawn from (i) seven wells on site and (ii) the Xigan canal. The seven wells are to be rehabilitated. g. Shelter belts are to be planted around the fodder plots, perennial crops etc. These are between 5 and 10 m wide and will be 70 km in length. Indigenous species will be used. h. The Project will also support new energy sources including solar, biogas and centralized air conditioning, through a pipeline network engineered with terrestrial heat pumps, a gas supply and heat utilization technology.

D. Component 4: Conservation and Tourism

1. Shahu Lake

11. Previous unrestrained tourism development and resource exploitation at Sand Lake have led to habitat degradation and threatened wetland biodiversity, and consequently placed future tourism revenue flows at risk. Integrated planning for tourism and conservation will reverse these trends and lead to sustainable design and management for wetlands, which are to be restored on land adjacent to the existing area.

12. The subproject will support development of three new lakes on 2,667 ha of farmland adjacent to the existing lake, and will include excavation of water channels and planting of reeds and lotus. Islands formed in the lakes will be planted and bird watching facilities developed. Holiday villas and other tourist facilities will also be developed. A wetland education center will be built and provided with appropriate educational materials and equipment. A monitoring system will track habitat and biodiversity changes. The subproject will also support the planting of 2,000 mu (133 ha) of reeds, which will be commercially harvested, and a similar area of lotus (for aesthetic purposes only). Aquaculture will also be developed in 133 ha of the new lakes, to provide additional revenue by taking advantage of local and regional markets for fish.

13. An improved wetland landscape will be built, composed of the reed lakes, lotus ponds, open water areas, islands, salt-tolerant shrubs and fishponds. Habitat for migrating birds will be enlarged and the ecological environment and biodiversity improved. Ecological tourism will be developed, so that the subcomponent will generate both relatively good ecological benefits and certain economic benefits. The subcomponent consists of five integrated parts.

Appendix 1 47

(i) Part 1: Earthwork and Open Water Extension. The subcomponent will support excavation for creation of three new water bodies on 2,667 ha of currently saline/alkaline barren lands. Soil from the excavation will be used to form ten islands of differing size, height and shape in the lakes, which will be serve as bird resting and roosting sites in the shallow water bodies.

(ii) Part 2: Plantation and Bird Browsing Trestles and Platforms. The extended lakes will be planted with reeds (667 ha) and lotus (667 ha). Large blocks of reeds will be inlaid among reed clusters with 50 m wide water channels, which will be arranged for boat transit. Lotus ponds will be arranged mainly at the south end of the site. Weeping willows, peaches, winter jasmine and roses will be planted on the lake shores. The replanted vegetation on the islands will be consist of fruit-bearing shrubs and include ornamental trees. Twenty bird browsing trestles and platforms will be located in the reed lakes at the eastern wetland of the lake zone. All are to be constructed with natural materials such as wood and reeds, and will be located more than 2 km from the core of the bird protection zone. (iii) Part 3: Aquaculture and Tourism. The extended areas of open water will used for the culture of fish, shrimps and crabs (667 ha) at the east and southern sides of the site There will be 2 types of ponds: intensive aquaculture ponds (5 ha) and extensive aquaculture production from 650 ha of existing water bodies. Aquacultural tourism will be developed on the 650 ha of water bodies, making these multiuse zones. (iv) Part 4: Tourism Development. Eighteen holiday bungalows will be built, and abandoned farmhouses will be restored to traditional decor for use by tourists. A plant will be built to treat residential wastewater, with the treated effluent used to irrigate landscaped areas. The existing 800 mu of fruit plantations will be reformed for tourism purpose. New plantations will mainly have apricots, plums, peaches and grapes. Another existing 2,000 mu of farmland will be reformed for both agricultural and tourism purposes. For the first phase, 1900 mu of purple- flower alfalfa and 100 mu of melons and vegetables will be grown. (v) Part 5: Wetland Popular Science Extension and Education. A wetland scientific education center (3,000 m 2) will be built to raise public awareness and educate students in wetland values and conservation. Training will be provided in wetland conservation.

2. Yuehai Wetland

14. The overall goal of the proposed subcomponent is to rehabilitate the productive and protective functions of Yuehai wetland ecological system and resources. The objective is to introduce measures that allow for comprehensive management of the ecological system in a way that facilitates sustainable commercial utilization of natural resources in the project area, so that ecotourism development, aquatic plant cultivation and aquaculture development (including water birds) at Yuehai wetland will be accelerated. The expected outputs of the subcomponent will include: (i) improving the protection and comprehensive management of water resources at Yuehai wetland; (ii) improving wildlife habitat and increasing wildlife species and populations through rehabilitation of natural vegetation and protection of wetland resources; (iii) building beautiful landscapes, wildlife habitats and ecological-cultural tourism zones of ornamental value; (iv) upgrading management and commercial agricultural production so as to advance the development of industrial agriculture; and (v) accelerating the development of commercialized

48 Appendix 1 agriculture on the basis of the theories and technologies of protective agriculture. The Project consists of five integrated components to date:

(i) Part 1: Bio-Diversity Protection and Capacity Building. This subcomponent includes the following activities: (a) protection of wetland resources and biodiversity; (b) rehabilitation of bird habitat; (c) maintaining the water resource balance (lining and regulation of inlet and outlet watercourses); (d) ecological greening of wetlands (200,000 m 2, with emphasis on planting of vegetation on the banks surrounding the wetland); and (e) capacity building. (ii) Part 2: Aquaculture Cultivation and Breeding. This includes: (a) cultivation houses and management rooms (1,200 m 2); (b) equipment and installation; (c) a technical demonstration area; and (d) poultry disease control, testing, and monitoring and information systems. (iii) Part 3: Cultivation and Processing of Aquatic Plants. This includes: (a) cultivation of aquatic plants ( Zizania latifolia , lotus roots, giant reeds, water chestnut, Euryale and reed); and (b) processing of aquatic plants (the construction of a processing and storing factory for foodstuffs produced from edible aquatic plants will include plant and management rooms and equipment). (iv) Part 4: Fishery and Processing. This includes: (a) mixed cultivation of grass carp, silver carp, common carp, crab and shrimp (10,000 mu); and (b) construction of an aquatic product processing and storing factory, including a room for plant and storage (1000 m 2), equipment procurement and installation, holding tanks for fresh fish (2 sets); areas for air drying and sun drying (2000 m 2), and earthworks for foundation construction and backfilling (50,000 m 3). (v) Part 5: Ecotourism Development. This includes: (a) small-scale garbage treatment facilities in the wetland park; (b) construction of a square for holiday makers (10,000 m 2) and management rooms (200 m 2); (c) construction of a bodybuilding zone, including a skating ground and supporting facilities, swimming pools, shower rooms (200 m 2), solar water heaters for the showers (20 sets), and a play ground; and (d) water tourism, including 20 electrically powered boats (10 large and 10 small).

3. Yinchuan Wetland

15. The subcomponent will rehabilitate the Yinchuan wetland ecosystem, protect biodiversity, and realize sustainable use of wetland resources by employing an IEM approach. The subcomponent consists of five integrated parts:

(i) Part 1: Protection of Wetland Resources and Biodiversity. Four conservation stations (150 m 2 each), four wetland monitoring stations (60 m 2 each), and four watch towers will be built at each of the following areas: the Yellow River Tonggui wetland, Yueyahu, Sandinghu and Qingshuihu wetland. Four monitoring boats and eight motorcycles will be purchased and 80 km of fence, four signboards, 200 boundary markers and 60 warning signs will be installed on those four wetlands. 10 sets of bird monitoring substations and other supporting facilities and structures will be constructed in those four wetlands and Mingcuihu wetland. The Yellow River wetlands will be closed. (ii) Part 2: Rehabilitation of Bird Habitats. The subcomponent will support waterbird habitat rehabilitation for 600 ha, and turn 150 ha of marginal land into lakes. Earthworks (three million m 3) will result in de-silting of lakes and canals.

Appendix 1 49

Reeds, lotus and cattails will be planted on 300 ha. Indigenous vegetation (100 ha) will be planted along channels and around lakes. (iii) Part 3: Wetland Park. Two Wetland Parks will be gazetted at the Bao and Haibao Lake. Two lake management stations of 150 m 2 will be constructed. Roads (30 km in length) will be built for operational roads and tourist paths, with widths of 3–5 m. Power supply, telecommunication, sewage treatment and solid waste treatment facilities will be installed. (iv) Part 4: Construction for Balancing Water Resources. Eighteen km of channel will be constructed, improved, dredged or lined, and 18 sluices will installed. This will improve and regulate a 30 km isolation belt around lakes. Biological treatment plants will be installed to treat waste water. (v) Part 5: Capacity Building. Public awareness and conservation training will be given at a training center of 200 m 2 supported by the subcomponent. A Wetland Management Information System will be installed and archives developed, with 100 m2 of infrastructure construction. A monitoring station of 300 m 2 will be built and equipped. Monitoring methods covering hydrology, agricultural pollution, eutrophication, the use of treated sewage effluent, plant ecology, biological water treatment, vegetation restoration on alkali soils, bird ecology, changes in wetland area, vegetation restoration, biodiversity and tourism impacts will be developed. Telescopes, GPS receivers, computers, and digital cameras will be purchased, together with equipment for the rescue of wild animals and pest control.

4. Yinxi Conservation Program—Yinxi Wetland, Botanical Garden, and Grassland Restoration and Set-Aside

16. The subcomponent involves three parts:

(i) Yinxi Wetlands. The Yinxi wetlands (comprising 850 ha) are a series of floodwater collection wetlands running along both sides of the Xigan canal, which have suffered from reclamation for crop planting. The subcomponent will develop a wetland management plan for the use of water and soil resources, the restoration and protection of wild aquatic plants, and the introduction of water management. The subcomponent will develop regulations to control reclamation of wetlands for cropping, and finance the restoration of cultivated lands to lakes, and where appropriate, planting of aquatic plants to restore habitat. Earthworks will include excavation and de-silting of wetlands that collect floodwater (510,000 m3), and repair of flood canals (40,000 m 3). Eighteen overflow dams will be established. (ii) Part 2: Grassland Restoration and Set-Aside. The subcomponent will construct an exclosure fence around 8,000 ha on the west side of the National Highway that excludes domestic and grazing animals, so as to enable grassland recovery. The subcomponent aims to increase groundcover (currently estimated at 20%) through a process of natural revegetation. Existing patches of natural and indigenous trees and shrubs will be part of an assisted revegetation program. Acquisition of monitoring and fire protection equipment will be supported by the subcomponent. (iii) Part 3: Botanical Garden. A 3,300 (220 ha) mu botanical garden and endangered plant protection center will be established. It includes a plantation area, which is devided into: (a) an endangered plant protection zone; (b) a science popularization and demonstration zone; (c) a desert plant zone; (d) a herbage botanic zone; (e) an amphiphyte zone; (f) an herbal plant zone (250

50 Appendix 1

mu); (g) a flower and fruit viewing zone; (h) a characteristic plant species resources zone; (i) a sight transition belt; and (j) an open water and aquatic plant zone. Land will be used for preservation, public facilities (including roads and footpaths, and an irrigation system), partitions, scientific research and monitoring, a playing square, etc.

5. Helanshan Piedmont Conservation Management

17. The subcomponent is a combined project involving two parts:

(i) Part 1: Cultural Relics (Xixia Tombs, Helankou, and Jiangjun Tower). The subcomponent will support the preservation and restoration of three cultural relics of national importance: (a) Jiangjun Tower, originally the residence of the last Manchu general from the Qin dynasty; (b) the prehistoric Helankou rock carvings (petroglyphs); and (c) the Xixia Tombs. The Jiangjun Tower, situated in Yinchuan City, will be relocated, restored, refurbished, and opened to the public. The Helankou rock paintings and carvings will be treated against weathering, graffiti and burglary using modern methods, with alarms and an exclosure fence installed. The fence will assist in protecting the carvings, and provide a small nature reserve where the natural vegetation is protected from domestic grazing stock and intruders. Flood control will be provided to reduce the risk to the petroglyphs. The main Xixia Tombs site will be upgraded. Two important tombs will be protected from further deterioration using approved methods, flood control works installed, and the entire area fenced, both to exclude domestic stock and prevent damage to the surrounding ecosystem, and to exclude intruders. (ii) Part 2: Helanshan Nature Reserve. The subcomponent will support the strengthening of the Helanshan Nature Reserve to (a) rehabilitate ecosystems, (b) develop ecotourism, (c) expand public education and staff training, and (d) undertake research and monitoring. To promote ecosystem restoration the subcomponent will support protection fencing, the provision of monitoring equipment, vegetation surveys and carrying capacity studies of key species. Ecotourism development will include enhancement to the main gate area, development of tourism sites and activities, upgrading of the museum, construction of a visitor and public education center with a lecture room, and provision of sanitation and solid waste management facilities. In addition, to benefit both scientific research and public education, automatic meteorological stations will be installed in each of three vertical bioclimatic zones, training will be implemented for all reserve staff, and nature-based short classes and summer camps for local schools will be developed. Animal behavior, species research and management planning, and laboratory equipment and internet connection needs will be addressed by research and monitoring programs.

KEY ENVIRONMENTAL CONCERNS AND ENVIRONMENTAL SAFEGUARD REQUIREMENT

Key Environmental Environmental Subcomponent and ADB Environmental Implementing OUTPUT Code Environmental Safeguard Management Category (A, B or C) Agency Concerns Requirement Plan Component 1: Building IEM Institutional Arrangements (C) A-1 Nil MOFFDO Institutional Effective Project Management (C) A-2 Nil MOFFDO Arrangements for IEM Application

Component 2: Spatial Planning and IWRM Planning (C) B-1 Nil MOFFDO Integrated Land Land Management Demonstrations (C) B-2 Nil MOFFDO and Water Conservation Agriculture (C) B-3 Nil MOFFDO Resource Management Xixia Canal (A) B-4 Xixia Canal to EIA/SEIA for EMP needed WRD Xixia Tombs and Subcomponents Irrigation System Rehabilitation and On- B-5 army base. B-4 and B-5 WRD Farm Water Use Efficiency (B) combined

Component 3: A: State Farm Ningxia Improving Rural Beef Production (B) C-1 Livestock waste IEE/SIEE EMP needed Agriculture Livelihoods Dairy Production (B) C-2 Livestock waste IEE/SIEE EMP needed Reclamation Vineyard and Winery (B) C-3 Waste water IEE/SIEE EMP needed Office

B: Yinchuan Municipality Yinxi Alternative Livelihoods (B) C-4 Livestock waste IEE/SIEE EMP needed YM

C: Hitechnology and Ecological Agriculture C-5 IEE/SIEE Ningxia (B) Administration Bureau Appendix 2 51 2 Appendix Component 4: Yinchuan Wetland (B) D-1 Wetland, biod. IEE/SIEE EMP needed YM Conservation Shahu Lake (B) D-2 Wetland, biod., IEE/SIEE EMP needed State Farm and Tourism Yuehai Lake (B) D-3 Wetland, biod. IEE/SIEE EMP needed State Farm

Yinxi Conservation Program : Wetland, biod. IEE/SIEE YM Yinxi Wetland D4 and plantings Botanical Garden D5

Grassland set-aside (B) D6 IEE/SIEE

Key Environmental Environmental 52 Subcomponent and ADB Environmental Implementing OUTPUT Code Environmental Safeguard Management Category (A, B or C) Agency Concerns Requirement Plan

Helanshan Piedmont Conservation D7 Protection of Appendix 2 Management cultural relics Cultural Relics Xixia Tombs D8 Helankou Rock Carvings D9 Jiangjun Tower D10 Helanshan Nature Reserve (B) D11 ADB = Asian Development Bank, EIA = environment impact assessment; EMP = environmental management plan, MOFFDO = Ministry of Finance Foreign Debt Office, SEIA = summary environment impact assessment; SIEE = summary initial environment examination; WRD = Water Resources Department, YM = Yinchuan Municipality

SUMMARY ENVIRONMENTAL MANAGEMENT PLAN FOR THE OVERALL PROJECT

Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

Screening of potential environmental impacts of components and subprojects.b

Component A (including subcomponents A-1 and A-2) and subcomponents B-1, B-2 and B-3 of Component B are classified as Category C, with no physical adverse environmental impacts. All other subcomponents of Component B and C classified as Category A or B are listed below with the potential for negative environmental impacts, which are mainly a result of the following activities: construction, planting, cultivation of aquatic products, livestock husbandry, agroprocessing, tourism development, cultural relics protection, farm land loss and resettlement. The anticipated environmental impacts and mitigation measures are summarized below. The various significant adverse environmental impacts are identified for each subcomponent; these are detailed in the relevant SEIA or SIEE.

1. Design Phase Site and B-4 Improper design of G M Lt (i) The alignment of Xixia Canal will be Design EPB location B-5 Xixia Canal alignment carefully selected to avoid any adverse institute PPMO may cause significant impacts to the Xixia Tombs and the damage to the Xixia army base; (ii) All temporary sites will Tombs. Poor project be carefully selected to avoid or design may result in minimize potential impacts to the high environmental and environment and surrounding economic costs. communities; (iii) Mitigation measures such as compensation for land occupation will be incorporated into the project design.

D1, D2, Conservation areas G M Lt To minimize impacts, the Design EPB 3 Appendix D3, D4 and critical wildlife may subcomponent sites will be carefully institute PPMO be affected if sites are selected, based on consideration of placed too close to environmental factors such as water significant breeding or and air resources, and distance to the nesting grounds, critical significant breeding or nesting grounds wetlands, etc. or critical wetlands. Rapid biological surveys should be undertaken at all 53

54 Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Appendix 3Appendix Code Impacts Scope Imp. Sup. Duration Magnitude

sites to ensure the absence of any

threatened or endangered flora and fauna, or of species of economic importance.

Others No impact S L Lt To minimize impacts, the Design EPB except subcomponent sites will be carefully institute PPMO above selected based on the consideration of environmental factors such as water and air resources, and distance to residential areas.

2. Construction Stage All the subcomponents classified as Category A or B will support some infrastructure construction, which have potential negative impacts. Soil All Possible soil erosion as S L St Soil will be collected at a designated Contractors EPB, PPMO a result of soil area until it is reused locally for building and IA excavation. foundations. Water drainage systems will be constructed and exposed areas revegetated to help reduce soil erosion.

Air All Dust in suspension S L St Construction sites will be enclosed, Contractors EPB, PPMO from construction exposed storage sites covered, or dust and IA activities and reduced with sprayed water, on-site transportation storage of materials will be minimized, water will be sprayed at construction sites and on dusty roads, materials will be transported in covered vehicles or in closed containers, vehicle speeds will be controlled, and transport routes selected with a view to minimizing dust.

All Pollution from vehicle S L St Vehicles will receive proper Contractors EPB, PPMO and construction maintenance and be operated in and IA machinery emissions compliance with relevant emission

Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

standards Noise All Noise generated by S L St Vehicles and construction machinery Contractors EPB, PPMO vehicles and will be required to be properly and IA construction machinery maintained and to comply with relevant emission standards. Construction arrangements will include prohibitions on the nighttime use of certain noisy machines (e.g. pile-drivers and concrete vibrators) if the construction site is close to significant breeding or nesting grounds, critical wetlands or villages.

Water All Wastewater and solid S L St Appropriate septic disposal systems Contractors EPB, PPMO Quality waste generated by will be installed at construction sites. and IA site construction Drainage ditches will be built and activities and temporary septic tanks installed for construction workers collection of wastewater. All construction equipment wash down areas will be equipped with water collection basins, including oil separators. Solid waste will be collected and transferred to the waste safety treatment plant.

D1,D2,D3 Water quality reduction S L St All excavation works should be Contractors EPB, PPMO Appendix 3 in critical watersheds confined to the dry season if possible, and IA resulting from and water quality frequently monitored. excavation for extension of open waters or linkage canals.

Flora and D1 Displacement of G M St No construction works will be sited IA and EPB, PPMO 55 Fauna D2 significant flora and adjacent to or near (within one km) contractors D3 fauna. Conservation significant breeding or nesting grounds,

56 Responsibility

Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Appendix 3 Appendix Code Impacts Scope Imp. Sup. Duration Magnitude

areas and critical critical wetlands, etc. Rapid biological wildlife may be affected surveys should be undertaken at all

if sites are placed too sites to ensure the absence of any close to significant threatened or endangered flora and

breeding or nesting fauna, or species of economic grounds, critical importance. wetlands, etc.

D5 The resettlement of G L St Any resettlement and planting of IA EPB, PPMO endangered plants for endangered plants should undergo the botanical garden detailed design and trials in advance of may cause loss of any large-scale plantings. these plants because of their low survival rate.

All Loss of or damage to S L St/Lt All construction works will be carried IA EPB, PPMO vegetation because of out so that damage or disruption to permanent or vegetation is minimized. Trees or temporary land shrubs will be felled or removed only if occupation they impinge directly on the permanent works or necessary temporary works. After temporary works are removed, sites will be revegetated.

All Potential loss of native L L St Only indigenous species or exotic IA EPB, PPMO vegetation cover and species based on local trials to test biodiversity caused by suitability for local conditions should be aquaculture and planted. Fruit-bearing shrubs are the plantings for the first choice, as these serve as food protective tree belt, as sources for wild birds in for the wetland well as on lakeshores subcomponents. Seedlings should be and islands. Higher sourced from certified nurseries. disease susceptibility associated with

Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

monoculture plantings of species not suited to local ecological conditions.

Historical, B-4 Construction activities G M Lt The alignment will be along the IA EPB, PPMO Cultural, and B-5 have the potential to Yanshan Road, along the Helanshan Archaeological disturb cultural sites. foothills, which is 1.5 km away from the The Xixia Canal Xixia Tomb Museum and 1.0 km from alignment will pass the nearest tomb). A reverse siphon through the Xixia culvert (15.15 km length) will be Tombs site and an constructed for this section, which will army base with an be outside the army base with minimal airport, which could impact. cause significant damage to these sites, Further mitigation measures will depending on the include: (i) further communications and approach selected. discussions with Xixia Tombs, relevant cultural authorities and the army base (required); (ii) a cultural relics survey should be conducted along this section before the construction of the reverse siphon culvert; (iii) procedures will be established so that cultural sites can be identified and protected if they are discovered during construction; and (iv) temporary land occupation will be

planned well ahead of construction of Appendix 3 the reverse siphon culvert.

D7 Construction of cultural G L St All construction works intended to IA EPB, PPMO relics protection may protecting cultural relics should be damage the relics if undertaken only after careful trials, improper techniques especially for Xixia Tombs and the are used, especially in Helankou rock carvings. 57

58 Responsibility Appendix 3Appendix Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

the case of Xixia Tombs and the

Helankou rock carvings.

D8, D9, Cultural sites may be G L Lt Mitigation measures will include IA EPB, PPMO D10, D11 encountered during immediate suspension of construction construction of the activities if any archaeological or other flood system for Xixia cultural relics are encountered. The Tombs. relevant cultural authority, as well as the PPMO, will be promptly notified, and construction will resume only after a thorough investigation.

Land All Certain land will be S L St Compensation or land exchange is IA EPB, PPMO Acquisition permanently or required if any farmland (or fish ponds) temporarily occupied are occupied. Temporary land for the construction occupation will be planned well ahead works of construction to minimize the impact of the disturbance. 3. Operational Phase 3.1 Animal Husbandry and Processing Solid waste C1 Solid waste from L M Lt The solid waste will be collected, dried IA EPB, PPMO C2 breeding of cattle, cows and sterilized and then used as D3 and water poultry compost fertilizer D4 C1 Solid waste from beef L M Lt The solid waste will be collected, dried IA EPB, PPMO C6 cattle and poultry and sterilized and then used as slaughtering and compost fertilizer processing C1 Solid waste from S L Lt The solid waste will be collected and IA and EPB, PPMO C5 contracted household treated by the small anaerobic biogas contracting breeding sectors production system (see ”wastewater” households below), and/or then used as artificial farmyard fertilizer.

Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

Wastewater C1 Sewage from the cattle L M Mt The wastewater from beef cattle IA EPB, PPMO breeding farms, breeding will be discharged to the including the central drainage pipeline and piped to the breeding site and the sewage treatment plant in the fattening demonstration Demonstration Area. After treatment, site the water quality will meet the Grade II standard, and will be used for irrigating trees and grassland in the Demonstration Area. The remaining treated water will be discharged into No. 32 Branch Drainage Canal (for Grade V water quality).

C1 Sewage from the L L Lt (See treatment for wastewater from the IA EPB, PPMO C6 slaughterhouse breeding site, above)

C1 Waste water from the S L Lt Sewage will be washed from the IA and EPB, PPMO C2 contracted household cowsheds and then treated by an contracting D3 breeding cowsheds anaerobic digester in the biogas households generation and utilization system. After treatment, the residue will be used as compost fertilizer and the liquid for irrigation of farm land or greening of yards. Biogas will supply fuel for the

households.

Air C1 Odor from the central L L Mt Air-exchange and other ventilation IA EPB, PPMO 3Appendix C2 cattle breeding site and facilities will be installed. Cowsheds will D3 the fattening site. Dust be thoroughly cleaned twice a day. An C6 from feed processing. airtight feed processing workshop will be used with a gas skirt to collect dust.

C1 Air pollution and odor L L Mt The processing workshop will be IA EPB, PPMO

C6 from the airtight with a gas skirt; waste gas 59

slaughterhouse could be treated by installing air-

60 Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Scope Scope Imp. Sup. Code Impacts Appendix 3 Duration Magnitude

exchange and other ventilation facilities, including adsorption by active

carbon. De-sulfurization equipment will be used for boiler smoke and carbon dioxide (CO 2).

C1 Air pollution and odors S L St Air-exchange and other ventilation contracting EPB, PPMO C2 from the contracted facilities will be installed if required. households D3 household breeding Cowsheds will be thoroughly cleaned cowsheds once a day.

Noise C1 Noise generated by S L St Equipment with good performance and IA EPB, PPMO C2 equipment and low noise will be selected, and brackets D3 machinery at the used to minimize vibration in installed C6 breeding and fattening equipment. Machinery will be site, as well as at the positioned appropriately, and slaughterhouse. maintained regularly, and personal protection provided for workers.

3.2 Agroprocessing and Winery Wastewater C3 Wastewater has L L St After treatment, the water will be IA EPB, PPMO D2 potential impacts, suitable for watering surrounding grass D3 particularly for and trees, or will be discharged into a C5 thewinery, if not drainage furrow. C6 properly treated.

Solid Waste Same as Impacts of improper S L St The plant residues such as grape IA EPB, PPMO above disposal of plant stems and skins should be collected residues such as grape and sold as livestock feed, and/or be stems and skins, as composted as organic manure. Boiler well as boiler slag in slag should be collected and used for the processing plants. road repairs, and /or sold as raw material for cement making.

Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

Air Pollution Same as Effluvia produced S L St Waste gas could be treated by IA EPB, PPMO above during processing installing air-exchange and other

(such as CO 2 from ventilation facilities, including grape fermentation adsorption by active carbon. process) and smoke from steaming stoves will degrade air quality. Noise Same as Excessive noise from S L St Equipment with good performance and IA EPB, PPMO above equipment can low noise will be selected, and brackets negatively impact the used to minimize vibration in installed health of workers. equipment.

3.3 Eco-tourism D2 Different types of L L Mt Mitigation measures include: IA EPB, PPMO D3 ecotourism will be (i) tourism planning and environmental D1 developed after guidelines developed during the earlier D7 construction is phase of subcomponent D8, complete. implementation should be strictly D9, Implementation of followed in implementing tourism D10, tourism projects has projects. D11 the potential result in (ii) No development of tourism physical impacts on any locally infrastructure (buildings, restaurants significant flora and and other service facilities, roads, etc.) fauna, which may be is allowed in sensitive core areas of the

displaced for wetland. development of sites; (iii) No development of tourism physical

loss of wetland and infrastructure (buildings, restaurants, Appe vegetation for trail and other service facilities, roads, etc.)

development and as a is allowed close to significant breeding n d

result of on-and-off-trail or nesting grounds, critical wetlands ix 3 activities; core zone, etc. displacement of wildlife (iv) Various non-infrastructure activities as a result of tourist that support ecologically appropriate presence; wetland tourism development. 61

62 Responsibility Appendix 3Appendix Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

excessive use of local (v) All solid waste, sewage and litter will resources, in particular be cleaned and collected, and properly water; localized water treated. A plant will be built to treat pollution from solid residential waste water and the treated waste, sewage, and effluent will irrigate landscaped areas. litter; localized water and air pollution from vehicles and power boats.

3.4 Water Balance B-4 The water balance may L M St A detailed water requirement analysis IA EPB, B-5 be impacted as a result and a study based on water monitoring PPMO, D1 of the Xixia Canal, will be carried out during the WRD D2 wetland and botanic implementation stage of the D3 garden development in subcomponent. Proper water allocation D7 the project area. should ensure that the water balance for the wetland is maintained.

C1 No impacts are L L St Not required IA EPB, C2 anticipated from PPMO, C3 excessive use of WRD C5 irrigation water by C6 cropping adjustments for fodder, grapes, horticulture, etc.

3.5 Use of Pesticides and Fertilizers All except Impacts to water S L St Pesticide and fertilizer application IA and EPB, PPMO 8,9,10,11 quality, flora and fauna should be minimized as much as contracting from the use of possible, and pesticides should only be households pesticides and applied by workers who have received fertilizers for shelter training in storage, handling, use, and belt plantation, fodder disposal. Workers should be issued field extension, protective equipment.

Responsibility Sub- Potential Negative Subject component Environmental Proposed Mitigation Measures a Code Impacts Scope Imp. Sup. Duration Magnitude

greenhouses, aquiculture, horticulture, etc. Dur. = duration: St = greater than 1 day, but less than 1 year; Mt = 1–10 years; Lt = Greater than 10 years; EPB= Environment Protection Bureau; IA = implementing agency; Imp. = implementation; Magn. = magnitude: L = low; M = medium; H = high; U = uncharacterized; PPMO = provincial project management office; SEIA = summary environment impact assessment; SIEE = summary initial impact examination; Sup. = supervision. Notes: Scope (e.g., spatial): S = site, effect restricted to a small area within an intervention site; L = local, effect restricted to intervention site; Sr = subregional, effect extends beyond the intervention site but falls within the local watershed; R = regional, effect extends throughout the subcomponent area; G = global, effect extends beyond the subcomponent area a1 Subcomponent Code: Refer to the “Subproject Code” column of the table in Appendix 1. b Categories are described in: ADB. 2003. Environmental Assessment Guidelines . Manila.

Appendix 3Appendix 63

ENVIRONMENTAL MONITORING REQUIREMENTS 64

Schedule for Reporting Requirements Key Activities Environmental Key Monitoring Responsibilities Appendix 4 Monitors Construction Inspect construction • Review site-specific environmental Weekly reports on activities at site, status of site- plans and alignment analyses and environmental management specific environmental analyses and EMP, of canal and road (if plan with site supervisor. Review proposed implementation of mitigation measures, and applicable) before work plan with site supervisor. additional measures required. Copies of the report work commences. • Ensure all required mitigation measures should be submitted to the PMO, Ningxia EPB, and Visit weekly during are in place. relevant county and/or district environmental bureaus construction and • Document activities and mitigation other activities measures (notes and photographs).  A final construction site report should be prepared involving earthmoving • Recommend improved mitigation summarizing activities, implementation of mitigation and hydrological measures if required. measures, impacts observed, and additional modifications. • Halt work if adverse impacts are noted.  measures required. Copies of the report should be submitted to the PMO, Ningxia EPB, and relevant county and/or district environmental bureaus.

Plantation Inspect plantation • Review environmental management plan Bi-weekly reports on activities at site, status of site- plans before work with site supervisor. specific environmental analyses and EMP, commences. • Review proposed work plan with site implementation of mitigation measures, and Visit site biweekly supervisor. additional measures required. Copies of the report during operation for • Ensure all required mitigation measures should be submitted to the PMO, Ningxia EPB, and as long as activity is are in place. relevant county and/or district environmental bureaus. undertaken. • Document activities and mitigation Visit weekly during measures (reports and photographs). Annual site reports should be prepared summarizing planting involving • Recommend improved mitigation activities, implementation of mitigation measures, earthmoving and measures if required. impacts observed, and additional measures required. hydrological • Halt work if adverse impacts are noted. Copies of the report should be submitted to the PMO, modifications. Ningxia EPB, and relevant county and/or district Visit site frequently environmental bureaus. during pesticide application. Visit site once during harvesting.

Cultivation of Inspect plantation • Review site-specific environmental Weekly reports on activities at site, status of site- aquatic plans before work analyses and environmental management specific environmental analyses and EMP, products commences. plan with site supervisor. implementation of mitigation measures, and Visit site frequently • Review proposed work plan with site additional measures required. Copies of the report

Schedule for Reporting Requirements Key Activities Environmental Key Monitoring Responsibilities Monitors during pesticide supervisor. should be submitted to PMO, Ningxia EPB, and application. • Ensure all required mitigation measures relevant county and/or district environmental bureaus. Visit site once during are in place. harvesting. • Document activities and mitigation Annual site reports should be prepared summarizing measures (using notes and activities, implementation of mitigation measures, photographs). Recommend improved impacts observed, and additional measures required. mitigation measures if required. Copies of the report should be submitted to PMO, • Monitor water quality daily both upstream Ningxia EPB, and relevant county and/or district and downstream of works during any environmental bureaus. works carried out on the water. • Halt work if adverse impacts are noted.

Livestock Visit as per the • Undertake environmental monitoring as Undertake environmental reporting as per the project- husbandry schedule in the per the project-specific environmental specific environmental assessments that will be project-specific assessments that will be undertaken prior undertaken prior to implementation.  environmental to implementation.  assessments.

Agroprocessing Visit as per the • Undertake environmental monitoring as Undertake environmental reporting as per the project- schedule in the per the project-specific environmental specific environmental assessments that will be project-specific assessments that will be undertaken prior undertaken prior to implementation.  environmental to implementation.  assessments. • Monitor in particular air emissions, wastewater, solid waste, and noise.

Tourism Visit as per the • Undertake environmental monitoring as Undertake environmental reporting as per the project- development schedule in the per the project-specific environmental specific environmental assessments that will be project-specific assessments that will be undertaken prior undertaken prior to implementation.  environmental to implementation.  4Appendix assessments.

Cultural relics Inspect work plans • Review site-specific environmental Weekly reports on activities at site, status of site-

protection before work analyses and environmental management specific environmental analyses and EMP, 65 commences. plan with site supervisor. implementation of mitigation measures, and Visit weekly during • Review proposed work plan with site additional measures required. Copies of the report construction and supervisor. should be submitted to the PMO, Ningxia EPB, and other activities • Ensure all required mitigation measures relevant county and/or district environmental bureaus.

Schedule for Reporting Requirements 66 Key Activities Environmental Key Monitoring Responsibilities Monitors

are in place. Final site report should be prepared summarizing Appendix 4 • Document activities and mitigation activities, implementation of mitigation measures, measures (using notes and photographs).  impacts observed, and additional measures required. • Recommend improved mitigation Copies of the report should be submitted to the PMO, measures if required. Ningxia EPB, and relevant county and/or district

• Halt work if adverse impacts are noted.  environmental bureaus.

Farmland loss Inspect • Review proposed compensation plan with Final report should be prepared summarizing and compensation plans site supervisor. activities, implementation of mitigation measures, resettlement before work • Document activities and mitigation impacts observed, and additional measures required. commences. measures. Copies of the report should be submitted to the PMO, Visit as per the • Recommend improved mitigation Ningxia EPB, and relevant county and/or district schedule in the measures if required. environmental bureaus. project-specific environmental assessments.

Water resource Visit as per the • Undertake environmental monitoring as Undertake environmental reporting as per the project- balance and schedule in the per the project-specific environmental specific environmental assessments that will be quality project-specific assessments that will be undertaken prior undertaken prior to implementation.  environmental to implementation.  assessments. • Monitor quarterly water quality at essential water bodies. EMP = Environment Monitoring Plan; EPB = Environment Protection Bureau; PMO = project management office; PPMO = provincial project monitoring office.

Appendix 5 67

WATER RESOURCE SUBPROJECT

I. INTRODUCTION

1. The water resource subproject of the Project includes Subcomponent B-1 (Spatial Planning and Integrated Water Resources Management Planning), Subcomponent B-2 (Demonstration of Sustainable Land and Water Management), Subcomponent B-4 (Xixia Canal Extension), Subcomponent B-5 (Irrigation System Rehabilitation and On-Farm Water Use Efficiency) of Component B (Sustainable Land and Water Resource Management) of the NYIEMP. The results of safeguard screening indicated that Subcomponent B-1 and B-2, are rated as category C according to ADB’s environment categories, 11while B-4 is classified as category A and B-5 classified as B.

2. The water resource subproject is classified as environmental category A according to ADB’s environmental assessment system and category I in the PRC’s environmental safeguard system. A full environmental impact assessment (EIA) report has been prepared by the Ningxia Institute of Environmental Science and Design, which is an A-level certified EIA agency. The full EIA report for the Project, including the water resources subproject, has been reviewed by the Ningxia Environmental Protection Bureau (Ningxia EPB) on 18 December 2006 and received final approval by the Ningxia EPB on 16 February 2007.

3. A summary environmental impact assessment (SEIA) was undertaken under the project preparatory technical assistance (PPTA). 22 The SEIA covers the full range of activities to be financed under the subproject, and was prepared in accordance with ADB’s Environment Policy (2003) , and ADB’s Environmental Assessment Guidelines.

4. The SEIA was undertaken by the PPTA international and domestic environmental assessment team, and was based on (i) a review of government publications, scientific literature, and previous technical and environmental impact studies; (ii) a review of available information on the proposed subproject design, including the full EIA report; (iii) consultation with the Ningxia EPB and related agencies; (iv) studies undertaken by the PPTA social assessment team; and (v) field visits.

II. DESCRIPTION OF THE SUBPROJECT

5. The objective of the subproject is to improve both water use efficiency and rehabilitation of ecosystem quality to promote socially and economically sustainable development. The overall purpose of the subproject is to make more water available by increasing the efficiency of water supply, distribution and use. The increased water supply capacity provides a guaranteed source of water for the wetlands and also for alternative water uses in the project area.

6. The expected outputs of the subproject will include:

(i) an Integrated Water Resource Management (IWRM) plan that optimizes sustainable utilization of water resources; (ii) an improved and more efficient water supply canal, which increases the overall efficiency of water use from less than 40% to over 60%;

11ADB. 2003. Environmental Assessment Guidelines. Manila. 22ADB. 2005.Technical Assistance to the People’s Republic of China for the Ningxia-Yinchuan Integrated Ecosystem Management Project . Manila.

68 Appendix 5

(iii) conversion of the pumped irrigation system that now serves the area between the Xigan and Xixia Canals into less costly gravity irrigation; (iv) improved on-farm water use efficiency technology; (v) restoration of abandoned cultivated land; (vi) replacement of groundwater now used by industry with surface water, and reduce overpumping of groundwater; (vii) reduced cost of water for agriculture users and improved returns for farmers in the region; (viii) improvement of water monitoring capacity; (ix) creation of a groundwater development and protection zone using a groundwater model; (x) improvement in soil salinity management; (xi) further development of water management and water pricing regulations consistent with the objectives of the Government’s (2006-2010)11 th Five-Year Plan; 33 (xii) improvement in water user association and water user and stakeholder management capacity and participation in water resource management.

7. The subproject consists of four integrated parts.

8. Part 1: Develop an IWRM Plan. The following activities will be undertaken as part of the IWRM plan development: (i) establish a ground and surface water monitoring network with data loggers; undertake (ii) groundwater modeling, a water balance study, and a study and mapping of soil salinity, and an IWRM planning process to develop an initial draft IWRM plan, with an ongoing schedule for filling data gaps, and revising and adapting the plan. Capacity building will include study tours and training. Training of farmers in water use efficiency practices will be undertaken through the water user association networks in conjunction with the Water Resources Department (WRD). New monitoring equipment for groundwater levels and quality will be procured and will include automatic water level stations and handheld field monitoring equipment.

9. Part 2: Extension of the Xixia Canal. The existing Xixia water supply canal will be extended for 31.1 kilometers (km) in the project area between the southern boundary of the Xixia Tombs Protection Area and Zhenbiepu. There are 38 canal buildings, including one recession gate, one control gate, 13 flood carrying aqueducts (flumes), six road bridges, one railway bridge, none bridges for farming production, and eight inlets linking the secondary and lateral canal levels. In addition, a reverse siphon culvert (15.44 km in length) will be constructed in the area of the Xixia Tombs and the air base of Lanzhou Military Command Area. The alignment of the canal has been shifted further east to minimize impacts to the Xixia Tombs general protection zone and to avoid impacting village infrastructure.

10. Part 3: Rehabilitation of the Xixia Irrigation Scheme. This will support the conversion from pumped to gravity-feed irrigation, and will also rehabilitate the irrigation scheme to increase water use efficiency. It will support the lining of secondary canals (118.25 km) and laterals and farm distributors (623 km), supporting control structures, and flumes. The land will be laser- leveled, and irrigation techniques will be modified to border-check (bay), low-pressure pipe, sprinkler and hose irrigation.

33Government of the People’s Republic of China. 2006. 11 th Five-Year Plan . Beijing.

Appendix 5 69

11. Part 4: Improved On-Farm Water Use Efficiency. A farmer-based program will be implemented to introduce farm management practices that increase efficiency of water use. The farm innovations will add to the efficiencies gained from the new Xixia Canal and associated rehabilitation of the secondary and lateral distribution system. The technologies will include conservation agriculture (CA), water use scheduling and nutrient management programs implemented through water user associations using a farmer school program.

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Resources

12. The subproject is located at the northwest of Yinchuan City. The eastern boundary is formed by Xigan canal, the western boundary is the 1200–1250 meter (m) elevation contour; Zhenbeipu Township lies to the north, and Qingtongxia City and Yongning County to the south. The length (from south to north) is 60 km, the width (east to west) is two to eight km, with a total land area of about 579,300 mu 44(see subproject map of the attached EMP).

13. The project area is situated at the Helanshan foothills, Terrace 2 to 3 of the west bank of the Yellow River. The terrain is gentle, ranging in elevation from 1130 m to 1250 m. It is higher at the southwest and lower at the northeast. The landform consists of gently sloping hills, and diluvial and alluvial plains.

14. The area’s climate displays typical continental monsoon features, and is arid to semi arid, with average annual precipitation of 210 millimeters, some 70% of which falls between July and September. Median annual evaporation rates have increased and are about 4.8 to 5.5 times the corresponding precipitation rate. In this dry area, winds and dusty weather are frequent. The annual average temperature is 8.8 0C, which varies sharply between day and night. The frost- free period is between 145 and 183 days. Natural hazards such as storms, drought, sandstorms, hail, frost and floods occur frequently.

15. The soil at the eastern piedmont of Mount Helan is an alluvial gravel soil. The soil texture is sandy or sandy loam. The soil profile is about 0.8 m, and the topsoil is normally sandy soil with gravel. In general, nutrient levels are low. These deficiencies are apparent in the malformations and poor growth displayed by forest plants and trees. Shifting and semi-fixed aeolian soil is distributed unevenly on the piedmont plain. The poor fertility of the conglomerate soils can be ameliorated to a significant extent within one or two decades if irrigated with Yellow River water, which is high in silt and nutrients. The warp soil is a well-developed agricultural soil, enriched by water and silt from the Yellow River.

16. Local water resources in the project area equal only 44.1 million cubic meters (Mm 3) in the project area, including 10.3 Mm 3 of surface water and 177.8 Mm 3 of groundwater (the total of ground and surface water is 144.0 Mm 3). There is little available surface water, which most often appears as runoff from rainstorms, and is difficult to capture and utiliize. Available water resources are dominated by exploitable groundwater resources, and the allocated and pumped water from the Yellow River. The exploitable groundwater factor is 0.7, so the available groundwater resource is 124.5 Mm 3. Water from the Yellow River is diverted mainly via the existing Xigan canal, with a maximum designed flow rate of 57 m3/s. In 2004 the total allocated Yellow River water from Xigan canal was 552 Mm 3, including the 142.0 Mm 3 of irrigation water pumped into the project area. Thus the total available water resource is 266.5 Mm 3.

44One mu = 667 square meters.

70 Appendix 5

B. Ecological Resources 17. Human activities, including industrial and agricultural development, have caused extinction of most native vegetation and large wildlife in the project area. The natural vegetation coverage is 10-30%. It is desert steppe grassland, with the main vegetation of drought resistant desert plants. The priority species are absinthium and feather grass. The main crops include wheat, maize, oil plants, grape, wolfberry, apple, and planted pasture (alfalfa). The current priority cropping system includes grapes (for wine making), cash forest crops such as apple, and vegetables in greenhouse.

18. Wildlife is limited primarily to small reptiles such as rodents and reptiles (saurian), local birds, insects, and lower life-forms. Livestock include sheep, cows, beef cattle, pigs, and chickens; livestock number 0.162 million head following rapid development of stocks. According to recent surveys, there are no rare or protected animals present in the proposed project area.

C. Socioeconomic Status 19. The subproject covers Minning Township of Yongning County, the western part of Xixia District of Yinchuan City, Huangyangtan Farm, Yuquanying Farm, Pingjipu Farm, Garden and Forestry Station of Yinchuan City, Helanshan Agricultural and Dairy Farm, and the Experimental Site of Zhenbeipu Township. In 2004, the total population was 44,280, excluding the urban population in Xixia District), with a rural population of 29,400, including 13,400 in the State Farms.

20. Ningxia is one of five ethnic minority regions in China. Hui Muslims, who reside mostly in the south, comprised approximately 35.1% of the population in 2004. Approximately 97% of the resettled population in the NYIEMP area is Hui. Options to protect and enhance the Hui’s unique culture will be assessed during the social and livelihood assessments.

21. From a socioeconomic perspective, the eastern piedmont slope east of Helan Mountain is a newly developed area where residents were relocated from the southern Ningxia mountain area. The area around Yinchuan City is used for intensive cash crop production, due to the proximity to the market. State Farms are found in the zone between the piedmont and Yinchuan City. In 2004, total grain yield was 27,400 tons, yield of oil plants was 1,100 tons, and fruit yield 25,800 tons. The annual per capita net income of rural households was CNY2,746 in 2004.

IV. ALTERNATIVES

22. Various alternatives were proposed and screened during subproject development, and their technical, economic, and environmental criteria compared. With respect to environmental criteria, the primary objective was to identify and adopt options on a least-cost basis, while giving full consideration to environmental impacts and benefits.

A. No-Action Alternative

23. Under the no-action alternative, the water resource shortage will continue and become more serious with ongoing social and economic development, possibly resulting in more serious ecosystem degradation and limiting local economic development. The efficiency of water use will remain low. Agricultural production in the region depends mainly on the pumped irrigation from the Xigan canal. The cost of water will remain relatively high (about 3–8 times the cost in the gravity-fed irrigation area of the Yellow River). Table 1 compares water use efficiency under the no-action alternative and with the subproject.

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Table 1: Comparison of Water Use Efficiency under the No-action Alternative and with the Water Resource Subproject Item No-action With the Comparison Project (%) Irrigation area (10,000 mu) 18.16 23.32 +28.4 Integrated use efficiency of irrigation water (%) 0.33 0.63 +90.9 Integrated net irrigation duty (m 3/mu) 785.00 318.00 -59.5 Total net water drawn for irrigation (100 Mm 3) 1.42 1.06 -25.4 mu = land division (1 mu = 667 m 2); m 3 = cubic meter; Mm 3 = million cubic meter. Source: Water Resources Department figures.

B. Alternative Alignments of Xixia Canal 24. An alternative alignment for the first section of Xixia Canal, which follows the 1,166.6 m elevation contour, is the optimal alignment from the standpoint of water transfer efficiency and minimization of construction cost. This alignment passes through the core protection area of the Xixia Tombs, however, which is both a national cultural relic approved by the central Government, and a national protected viewing site, approved by the State Council in 1988. Most important relics—such as the King Tomb, Xian Building, Accompanying Tombs and Temples— are concentrated in this core area. This alternative alignment is prohibited by both the Cultural Relics Protection Law of the People’s Republic of China and Regulations of the People's Republic of China Concerning the Administration of the Work for the Protection of Underground Cultural Relics .

25. An alternative alignment for the first section of Xixia Canal runs along the western side of Yanshan Road (along the Helanshan foothills), which is 100–200 m away from the boundary of the Xixia Tombs core protection zone, 1.3 km away from the Xixia Tomb Museum, and 1.8 km from the nearest tomb. While the alignment reduces potential impacts it remains within the priority 55protection zone for the Xixia Tombs. Any construction project at the western side of the Yanshan Road should be approved by the National Cultural Relics Protection Administration in advance.

26. The final design alignment follows the eastern side of the Yanshan Road, and moves the canal further from the Xixia tomb core protection zone but remains within the general protection zone. A reverse siphon culvert (15.44 km in length) will be constructed for this section to minimize the impacts on the cultural site. This will increase the construction cost and loss of water head. This subproject should be approved by the Ningxia Cultural Relics Protection Bureau.

C. Alternative Extension of Irrigation Area to the west of Xixia Canal 27. An alternative project activity proposes extending the pump irrigation agricultural area to the west of Xixia Canal, using the water saved as a result of the project. Soil conditions are poor in this area, however (problems include shallow soil depth, coarse soil texture with too much gravel, and low soil fertility). The cost-benefit ratio of irrigating this area is low, both because of the high cost of pump irrigation and the low productivity due to the poor soil. The water use efficiency would also be low, due to water leakage and nutrient leaching loss in the coarse soil. The value of agricultural development on these soils is considered to be significantly lower than the area’s conservation and tourism values, especially in the upper piedmont and Helanshan.

55The Xixia Tombs protection area has three levels of protection; constraints on development decline as the distance from known tombs or archeological sites increases. The zones (in declining order of constraint) are (i) core zone, (ii) priority protection zone, and (iii) general protection zone.

72 Appendix 5

28. Following discussion between the provincial project management office (PPMO), Water Resources Department (WRD) and PPTA team members, the option of pump irrigation to the west of the Xixia Canal has been removed from the Project. The saved water (about 36.00 Mm 3 per year) will be transferred by another canal to the Yinchuan wetlands in the Project area, through the sale of water rights. The NHAR has agreed that all the land to the west of Xixia Canal be set aside solely for conservation purposes.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Screening of Potential Environmental Impacts 29. Environmental benefits associated with the subproject will be significant. An irrigation management system will be implemented with automatic controls linked to measurement of crop water demand and soil moisture deficits, to enable irrigation to be scheduled at optimum times. This will be carried out in conjunction with a shift to more water efficient crops, such as grapes, melons, vegetables and pasture.

30. The subproject will result in efficient and reasonable use of land and water resources. The Xixia Canal will supply water to the area between the existing Xigan canal and the proposed Xixia Canal. The existing area served by pumped irrigation to the west of the Xigan canal (126,600 mu) and the associated groundwater irrigation area (55,000 mu) will be supplied with gravity fed water through the canal. The canal will redistribute water from the Xigan canal, which has an efficiency of only 38%; in contrast, the proposed design efficiency for the lined Xixia Canal is 63%. The subproject will rehabilitate the existing irrigation systems and will provide water at significantly lower cost. With part of the saved water, 51,600 mu waste land will be converted to arable land.

31. About 36 Mm 3/yr of saved water (off-take) will be transferred to the Yinchuan wetlands to enhance sustainable development and biodiversity protection, with positive impacts on both the environment of the project area and on biodiversity values with global significance, through increases in vegetation cover, improvements in hydrology, and restoration of degraded soil.

32. Significant adverse environmental impacts are caused by parts 2 and 3 of the subproject, primarily through construction of Xixia Canal and the distribution system. The anticipated environmental impacts and mitigation measures are analyzed below. No negative physical environmental impacts are anticipated to be caused by parts 1 and 4 of the subproject.

B. Mitigation Measures during the Design Phase 33. The following mitigation measures will be undertaken during the design phase: (i) the Xixia Canal alignment and design will be adjusted to minimize any adverse impacts to Xixia Tombs and the army base; (ii) all temporary construction sites will be selected to avoid or minimize potential impacts to the environment and surrounding communities; (iii) mitigation measures such as compensation for land occupation will be incorporated into the subproject design.

C. Environmental Impacts and Mitigation Measures during the Construction Phase 34. Construction activities are expected to generate the following adverse impacts:

(i) Airborne dust will be caused by excavation, demolition, vehicle movement, and materials handling, particularly downwind from the construction sites.

Appendix 5 73

(ii) Air pollution will be caused by emissions from vehicles and construction machinery, and limited waste gas from live coal burning at construction camps. This impact is minimal and temporary as the construction corridor is linearly distributed in field. (iii) Noise will be caused by construction equipment and vehicular movement, potentially affecting residents of nearby villages. The noise impact from construction equipment is limited, as only a few storage tank construction sites are close (within 200 m) to villages. (iv) Traffic congestion will be caused by canal construction along the road, especially construction of the reverse siphon culvert and road bridges (culverts). Roads may be fully or partially closed during construction, causing temporary inconvenience to the public. (v) Waste discharge from construction camps. Construction camps could become potential pollution sources by discharging wastewater (including construction equipment wash-down and human wastewater). The camps could also be sources of solid waste and waste oil from machinery maintenance. (vi) The canal, including the reverse siphon culvert construction and demolition, will generate excess materials that must be disposed of. Improper disposal may result in water and soil erosion in the wet season, and/or be a source of dust in the dry season. (vii) Land impacts (described in detail in section E). (viii) The potential loss of, or damage to, vegetation because of permanent or temporary land occupation. (ix) Cultural relic impacts (described in detail in section F).

35. Based on the results of the impact assessments, the following mitigation measures will be adopted during the construction phase:

(i) Construction sites, transportation routes, and materials handling sites will be water-sprayed on dry and windy days (up to three times a day), especially if these sites are near sensitive receptors, such as residential areas. (ii) Vehicles and construction machinery will be required to be properly maintained and comply with relevant emission standards. (iii) Construction activities will be carefully scheduled to minimize the impact of noise from construction machinery. Nighttime uses of certain noisy machines, such as pile-drivers and concrete vibrators, will be prohibited if the construction site is close to a village. (iv) In conjunction with the relevant authority, traffic plans will be prepared ahead of the construction of large road bridges (culverts) if the activities could result in traffic congestion. (v) To avoid contamination of the surrounding areas sewage and other wastewater from construction camps will be collected and treated using septic tanks before being discharged. (vi) Materials will be stored in appropriate locations and covered or sprayed to minimize dust. (vii) Construction waste will be promptly removed from sites. Burning of construction waste will be prohibited. (viii) Materials will be covered during transportation to avoid spillage or leakage. (ix) All construction works will be carried out so that damage or disruption to vegetation is minimized. Trees or shrubs will only be felled or removed if they

74 Appendix 5

impinge directly on the permanent works or necessary temporary works. After completion of temporary works, the sites will be revegetated. (x) Contractors will be required to take necessary safety measures at construction sites to protect the public, and warning signs will be provided to alert the public to potential safety hazards at and around the construction sites, especially in the case of road bridges (culverts) and the reverse siphon culvert. (xi) All contractors and construction supervisors will be required to participate in an environmental training program before construction begins.

36. The above mitigation measures will, where appropriate, be included in the tender documents and subsequently in the construction contracts.

D. Environmental Impacts and Mitigation Measures during the Operation Phase 37. The possibility exists for accidents to occur during the operation phase, such as leakage from regulating tanks, or slumping of canal banks that threatens roads, property and life. However, the likelihood and scale of these impacts is assessed to be minimal, as the maximum off-take flow rate in the Xixia Canal is only 4.20 m3/s, and it will be a lined canal. The potential for bank slumping will be minimized by planting trees or shrubs along the bank of canal corridor.

38. The potential for secondary soil salinization caused by the leakage from the canal will be minimal because of the lining, and the coarse soil texture with good leakage capacity. The irrigation duty will be lower in the field than before the subproject. In addition, water saving practices will be improved as a result of parts 1 and 4 of the subproject.

E. Land Acquisition and Resettlement 39. People affected physically and economically by the subproject include people: (i) affected by the permanent acquisition of land; (ii) affected by the temporary use of land for construction; and (iii) whose livelihoods are impacted during construction activities. All subproject parts were planned to minimize disruption to residential areas and villages and maintain village cohesion.

40. Construction of Xixia Canal requires the permanent acquisition of about 3,982.5 mu of land. A limited amount of land (510 mu) will be temporarily required for part 2 (Rehabilitation of the Xixia Irrigation Scheme), as most of the activity is based on the original distribution system. In addition, about 139.5 mu of land will be temporarily occupied for borrow and stockpile pits, construction paths and camps for the construction of the Xixia Canal. The land acquisition may require permanent or temporary removal of vegetation (including fruit trees) and disturbance to livelihoods for which the affected persons will be compensated.

41. Temporary land occupation will be planned well ahead of construction to minimize the impact of the disturbance. Land will be returned to its original condition on completion of construction.

42. All affected persons will be compensated in a timely and adequate manner, so that they will be at least as well off as they would have been without the subproject. The compensation requirements have been carefully considered and incorporated into the subproject design.

43. No other resettlement will be required by the subproject. The prepared Short Resettlement Plan for the Project has considered the impacts and will need to be reviewed

Appendix 5 75 based on final engineering designs and surveys, which are to be completed before final approval by ADB.

F. Cultural Relics Protection 44. Construction activities have the potential to disturb cultural sites. Xixia Canal alignment will be adjacent to the Xixia Tombs site and an army base with an airport, which could potentially cause significant damage to these sites. The alignment has been changed from what would be the optimal route for water transfer efficiency and construction cost-benefit, and will instead pass along the eastern side of the Yanshan Road (along the Helanshan foothills), further from the boundary of the Xixia Tombs core protection zone. A reverse siphon culvert (15.44 km in length) will be constructed for this section, which will remain outside the army base and minimize the impacts to the Xixia Tombs.

45. Further communications and discussions with the Xixia Tombs, relevant cultural authorities and the army base are required. This subproject should be approved by the Ningxia Cultural Relics Protection Bureau. A cultural relics survey should be conducted along this section before construction of the reverse siphon culvert. The potential to impact cultural sites is considered high, although no cultural or archeological sites have been identified along the subproject alignment. Temporary land occupation (including borrow pits and stockpile pits, construction path and camps) will be planned well ahead of construction of the reverse siphon culvert, to minimize the impacts of the disturbance. Land will be returned to its original condition on completion of construction.

46. Procedures will be established so that cultural sites discovered during construction can be identified and protected. Mitigation measures will include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The relevant cultural authority, as well as the PPMO, will be promptly notified, and construction will resume only after a thorough investigation.

47. In addition to the Xixia tomb, the Xixia Canal alignment will encounter about 20 family graves, which are important to families. The graves have no historic importance other than personal family history. Compensation and grave removal is included in the design to mitigate the impacts.

G. Water Balance and Quality 48. The Xixia Canal will supply irrigation water to the area between the existing Xigan canal and the proposed Xixia Canal. The existing pumped irrigation area (now supplied by the Xigan canal) to the west of the proposed Xixia Canal will be supplied with gravity fed water from the Xixia Canal. The designed Xixia Canal water draw (off-take from the Yellow River) amounts to 142 million Mm 3/yr, which is equivalent to the original average annual water draw from the Xigan canal. Consequently, the subproject will have no impact on the water balance of the Yellow River.

49. After construction of the subproject, the integrated net irrigation duty will be reduced from 785 to 318 m 3/mu, which will save about 84.49 Mm 3/yr. A total of 23.44 Mm 3/yr water is to be used for development of new farm land from waste land, and 24.99 Mm 3/yr water will be supplied (via gravity feed) through the canal to the original groundwater irrigation area, which will reduce groundwater demand, and slow the drop in the regional groundwater table in the well irrigation area. Through the sale of water rights another 36 Mm 3 of saved water off-take is

76 Appendix 5

designated to be transferred downstream via another canal, and used for the Yinchuan wetlands.

50. There are few villages and industrial plants along the canal corridor, and no impact is anticipated as a result of water pollution caused by domestic and industrial waste water. The most likely accidental water quality impact may be caused by flooding from the piedmont and windblown sand. These potential impacts will be minimized by planting trees or shrubs along the banks of the canal corridor, and through proper design of engineering works such as flood- carrying aqueducts (flumes).

Table 2: Water Demand Forecast for Meili-Yaojin-Xixia and Xigan Irrigation Systems Water Present Planned 2010 Planned 2020 Demand Irrigation Water Unit Water Irrigation Water Unit Water Irrigation Water Unit Water Area Volume Consumption Area Volume Consumption Area Volume Consumption 3 3 3 3 3 3 Water Use (mu) (mm ) (m /mu) (mu) (mm ) (m /mu) (mu) (mm ) (m /mu) Meili 337,000 465 1,380 462,000 261 565 462,000 261 565 irrigation Yaojin 185,000 232 1,254 203,800 167 819 203,800 167 819 irrigation Xigan 388,000 365 941 388,000 365 941 388,000 365 941 gravity irrigation Xigan 284,200 187 658 0 0 0 0 pumped irrigation Xixia 0 0 460,000 221 480 460,000 221 480 irrigation Industrial n/a 37 97 n/a 142 use Total 1,194,200 1,286 Ave. 1,058 1,513,800 1,111 Ave. 701 1,513,800 1,156 Ave. 701 Difference 319,600 -175 319,600 -130 % increase 27% -14% 27% -10% from present mu = land division (1 mu = 667 m 2); m 3 = cubic meter; mm3 = million cubic meter. Source: Ningxia Water Resources Department.

VI. ECONOMIC ASSESSMENT

51. The current cost estimate for the subproject is about CNY264.4 million prior to appraisal. Direct environmental protection costs are estimated at CNY8.5 million, or 3.2% of the total estimated cost of the subproject. The direct environmental cost includes: CNY 3.0 million for soil and water conservation (revegetation), CNY2.9 million for engineering such as flood carrying aqueducts (flumes), and CNY2.6 million for land acquisition compensation.

52. In addition to the direct environmental cost, capacity enhancement (mainly for parts 1 and 4) is estimated to cost CNY22.5 million. Part of this amount is budgeted for compliance monitoring of the subproject.

53. The cost-benefit analysis of the subproject indicated that the economic internal rate of return is about 13.9%. The proposed investment is economically justified. The main quantifiable economic benefit is CNY44.94 million, which includes:

Appendix 5 77

(i) CNY23.49 million in increased irrigation benefits from the 51,600 mu of newly developed arable irrigation land;

(ii) CNY14.44 million in increased irrigation benefits from increased productivity as a result of water saving irrigation and cropping system adjustments;

(iii) CNY6.11 million resulting from reduced irrigation costs (i.e., the cost of 20.36 million kWh of electricity per year), because the existing 126,600 mu now served by pumped irrigation to the west of the Xigan canal and the associated 55,000 mu groundwater irrigation area will both be supplied with gravity-fed water through the canal; and

(iv) CNY0.9 million resulting from exchanging the market water rights to 36 Mm 3 of saved water off-take, which will be transferred (via another canal) to downstream wetlands in the subproject area (Shahu and Yuehai).

54. The environmental benefits of the subproject are substantial, although difficult to quantify in monetary terms. The proposed subproject will generate a wide range of ecological benefits, including: (i) providing a water source for the Project area, which has significant positive environmental impacts; (ii) reducing seepage water loss and preventing secondary soil salinization; (iii) groundwater resource protection, which will slow the drop in the regional groundwater table in the well-irrigation area; (iv) promotion of conservation agriculture and alternative livelihoods; and (v) improvements in the tourist and resident environment in surrounding areas of Ningxia.

55. The social benefits of the subproject are substantial. A rural population of 44,280 (including a population of 13,400 living in State Farms in the project area) will benefit directly. The subproject will improve the environment in inhabited areas, increase the income of farmers, and promote poverty reduction through development of sustainable land uses and livelihoods. The urban population in the project area will be a potential beneficiary, because the subproject will protect water resources and provide a guaranteed water source for industrial production.

VII. ENVIRONMENTAL MANAGEMENT PLAN

A. Environmental Management 56. The environmental management plan (EMP) has been developed in the design stage and will be incorporated into the construction and operation management plans. A consolidated EMP for the subcomponent (Appendix 3) covers all phases of the subproject from preparation and construction to commissioning and operation, and aims to monitor environmental impacts and their mitigation. The summarized potential impacts and mitigation measures are contained in the subproject EMP.

57. The subcomponent EMP will ensure effective implementation of various identified mitigation measures. Various organizations with different environmental management responsibilities have been involved in subproject preparation and will be involved in the EMP implementation. The PPMO, contractors, and implementing agencies (IAs) will each nominate full-time, trained, and qualified environmental specialists to undertake environmental management activities and ensure effective implementation of the EMP. Table 3 of the subcomponent EMP shows the environmental responsibilities in different phases of the subproject. In accordance with the EMP, the IAs will establish an environmental management

78 Appendix 5 office that will generally require two employees. These offices will be supported and supervised by the EPB and PPMO.

58. Plans for public involvement during the design, construction, and operation phases have been developed during the subproject preparation stage. These plans include public participation in: (i) monitoring impacts and mitigation measures during the construction and operation phases, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviews after the subproject has been completed. There will be several types of public involvement, e.g., site visits, workshops, investigation of specific issues, interviews, and public hearings (presented in Table 2 of the EMP).

59. The PPMO will ensure that the subproject’s progress and impacts are monitored and reported in line with ADB requirements. The effectiveness of both mitigation measures and the monitoring plan will be evaluated through the feedback reporting system. The measures required by the EMP will be adjusted if necessary. The EPB and PPMO play critical roles in this feedback and adjustment mechanism.

60. Costs for all mitigation measures during construction will be included in the tender and contract documents and will be borne by the contractors. Costs related to mitigation measures during operation will be borne by the IAs.

B. Environmental Monitoring 61. Environmental monitoring programs will evaluate the: (i) extent and severity of environmental impacts as compared with predicted impacts, (ii) effectiveness of the environmental protection measures and compliance with related rules and regulations, (iii) impact trends, and (iv) the overall effectiveness of the subproject EMP.

62. The subproject monitoring program will focus on the environment within the project area. The Project’s approach to environmental monitoring is to utilize appropriately qualified monitors who will visit intervention sites at key times to ensure that mitigation measures are being implemented, and that negative impacts are not taking place. At the beginning of subproject implementation, the PPMO and IA will develop comprehensive subproject performance management system (PMS) procedures to systematically generate data on the inputs and outputs of the subproject parts, together with detailed environmental and related socioeconomic indicators, which will be used to measure project impacts.

63. The detailed environmental monitoring program considers the scope of monitoring, parameters and frequency of monitoring, data processing, and quality control requirements. Monitoring will follow the national standard methodology for monitoring pollutants.

64. Construction should emphasize protection of cultural relics, especially in the area from the Xixia Canal to the Xixia Tombs. For all construction activities, appropriately qualified monitors should visit each construction site regularly during key activities to ensure that recommended mitigation measures are being implemented. The indicators for environmental impacts include water (amount drawn and quality), irrigation area, ration and water use efficiency, soil salt concentration, and relevant economic and social data such as agricultural yield and income. Special emphasis should be focused on air and noise pollution during construction, as well as on water quality monitoring during the operation phase. Table 1 of the EMP describes the environment monitoring program for key indicators.

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65. Compensation paid for any possible land loss should be also monitored by the environmental monitors, together with the social and economic monitors. A final report should be prepared summarizing activities, implementation of mitigation measures, impacts observed, and additional measures required.

C. Institutional Enforcement and Enhancement 66. According to the subproject design to date, the WRD will be the overall implementing agency (IA) and repayment agency for the water resource subproject. Functional responsibility for various subcomponents will be assumed by divisions of WRD. The Ningxia Water Resource and Hydropower Development Company, under WRD, will serve as IA for the Xixia Canal construction undertaken in Part 2. WRD’s Farmland Construction Office and other institutes under WRD will serve as IA for other subcomponent parts.

67. The PPMO, contractors, and IAs will each nominate full-time dedicated, trained, and qualified environmental specialists to undertake environmental management activities and ensure effective implementation of the EMP.

68. The IA and contractors will be responsible for implementing the environmental monitoring program. Technical studies may be contracted to certified agencies; the monitoring programs and budgets will be included in the construction and operation contracts. The IA will make appropriate arrangements for monitoring in consultation with the EPB, and monitoring reports will be made available to the EPB on a monthly basis. When complaints are received from the public, EPB’s monitoring staff will conduct additional inspections immediately. Table 3 of the EMP summarizes environmental responsibilities.

69. Environmental staff of PPMO, the IAs and the CSC will receive necessary training in environmental management, monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental management techniques. Funding for this possible training will be included in the subproject environmental budget.

70. The EPB management and monitoring staff will report any failures to implement mitigation measures or any significant adverse environmental impacts to the EPB and the PPMO. The authorized EPB will be responsible for halting activities if mitigation measures are not being implemented or if significant negative environmental impacts are occurring. Activities should not recommence until the identified problems are adequately addressed.

VIII. PUBLIC CONSULTATION AND DISCLOSURE

A. Public Consultation

71. Relevant government agencies, environmental experts and stakeholders have been involved in the planning stage of the subproject, and will be continuously involved in environmental assessment of each subcomponent during the subproject implementation, based on the PRC’s procedures and guidelines and ADB’s Environmental Assessment Guidelines . Three types of public consultation have been conducted for the subproject design to date: (i) interviews and meetings with relevant government agencies by the PPTA environmental assessment team; (ii) direct consultation by the PPTA biodiversity and environmental and social assessment teams through workshops, group discussions, and interviews with households; and (iii) surveys and questionnaires administered by the PPTA environmental and social assessment team.

80 Appendix 5

72. Two rounds of public consultation were held during the course of the environmental impact assessment. The primary objective of the first round was to gather information on public concerns about the subproject as part of the wider Project consultation. The primary objective of the second round was to communicate the EIA findings and proposed mitigation measures, and determine the degree of public acceptance. The Ningxia Institute of Environmental Science and Design has prepared a multiple-choice questionnaire. One hundred questionnaires were distributed to people concerned with the subproject and those living near the subproject areas and 91 valid returns were received. The respondents included government employees, workers, farmers, and technicians.

73. The Chinese Law on Public consultation was introduced in December 2005. The consultation process for the project involved the following activities: (i) Internet posting of the draft EIA reports for the Project, (ii) interviews with NGOs, (iii) special purpose meetings, and (iv) stakeholder surveys by way of questionnaire.

74. Under the PRC’s environmental law the Ningxia EPB must either undertake two Internet postings or hold two public workshops held to review the Project. Due to the diverse range of project interventions and their stakeholders the option of public meetings was not selected and instead the Ningxia EPB disclosed the Chinese EIA on two web pages. Once the draft EIA was produced it was posted on the Internet for a total of four weeks (for two weeks beginning 15 November 2006 at www.nexp.gov.cn , and for two weeks beginning 25 December 2006 at www.nx.gov.cn ). No comments were received after either Internet posting.

75. Two NGOs involved in environmental protection—Ningxia Association of Environmental Protection Volunteers (NAEPV) and Ningxia Environment Federation— were interviewed by the PPTA environmental assessment team. The Ningxia Environmental Sciences Design and Research Institute invited three members of NAEPV to participate in field inspection of some subcomponents and included their opinions in the EIA/IEE reports.

76. An informal public hearing was organized for Yuehai wetland subcomponent by Ningxia EPB supported by the National Democratic Institute for International Affairs as part of the development of public consultation procedures for the EIA. The hearing is a case study of the training program of public participation in EIAs in the PRC’s northwest region, which was held by Ningxia EPB from 14 to 15 July 2006. For details see the separate Yuehai Wetland SIEE.

77. The stakeholder survey was completed by the Ningxia Environmental Sciences Design and Research Institute. The survey consisted of multiple-choice questionnaires for each evaluated subcomponent, and an additional questionnaire for the entire Project; they were distributed from 15 November to 1 December 2006. Table 3 shows the number of questionnaires distributed to people concerned with the subcomponent and those living near the subcomponent areas, as well as the number of valid returns were received

Table 3: Questionnaires Distributed and Returned in the Chinese EIA Type in Chinese EIA Subproject Distributed Returned Water resource Xixia Canal (A) and Irrigation System 100 91 Rehabilitation Ecological, wetland Lake Shahu and biodiversity 30 30 protection Yinchuan Wetland 30 30 Yuehai Lake 30 30 Botanic Garden 50 —

Appendix 5 81

Type in Chinese EIA Subproject Distributed Returned Ecological industrial Yinxi Alternative Livelihoods 50 45 development Vineyard and Winery 100 83 Hitechnology and Ecological Agriculture 100 83 Dairy Production 100 94 Beef Production 100 80 Cultural relics Cultural relics (Xixia Tombs, Helankou, 40 38 protection Jiangjun) For the Project overall 50 50 — = data not available, EIA = environmental impact assessment. Source: Ningxia Environmental Sciences Design and Research Institute.

78. Key responses for the surveys indicated the following: (i) the main means of gaining information on projects was the newspaper, followed by the radio and the internet; (ii) 98% of respondents report that they believed the project would provide significant economic benefits; (iii) 10% of respondents remained unclear on all aspects of the Project while approximately 51% were mostly clear and felt they understood the Project; (iv) 99% of the respondents felt they were clear about the environmental issues being addressed in the project with 30% reporting a lack of vegetation and another 30% reporting a shortage of water resources, while a further 26% and 15% listed desertification and salinity respectively as the main environmental problems being addressed; (v) 79% report that pollution in the project area affects their quality of life to a large extent, while a further 37% reported some affect, and 21% felt pollution had no effect on their quality of life; (vi) 87% of respondents reported that the Project would positively affect the quality of water resources; (vii) 61% of respondents believed that the Project construction would create no noise and/or sound impact; and (viii) 82% reported significant positive ecological impacts associated with the Project.

79. The conclusion from the returned survey questionnaires was that stakeholders in the project area perceived and reported that they expected to receive positive benefits from the Project.

80. Local government agencies believe the subproject will have an overwhelmingly positive environmental impact. During the public consultations, land acquisition, the protection of cultural relics (Xixia Tombs) and the water balance were the issues that received the majority of comments. The vast majority of those commenting were willing to accept the land acquisition plan in order to provide the required land for the Xixia Canal construction. Those who would be affected wanted the compensation and land acquisition costs to be fair, in compliance with relevant state and provincial policies, and paid on time and in full to the head of the households. The affected public believes that investment in the subproject would support regional economic development, and that subproject construction and operation would bring employment or other income opportunities.

81. Two rounds of detailed discussion have been undertaken by the WRD with Xixia Tombs and relevant cultural administration agencies. The alignment of Xixia Canal that passes through the core area of the Xixia Tombs has been confirmed to be prohibited. The current alignment is

82 Appendix 5 still waiting for formal approval by the local cultural agency, and it is suggested that a survey of cultural relics should be conducted along this section before the construction of the reverse siphon culvert. The IA has organized a cultural relics protection plan, which was been submitted to Ningxia Cultural Relics Protection Bureau for review and approval on 12 December 2006. Further communication and understanding between IA and the Xixia Tombs are required before and during construction.

82. After consultation, Ningxia WRD stated that compensation for family graves resettlement will be conducted together with land acquisition in the future, and will follow the domestic standard. The appropriate consultations and results will be included in the short resettlement plan.

83. The issues and concerns raised through the public consultation program are believed to have been appropriately addressed during EIA and mitigation planning. Specific mitigation measures have been designed to avoid or minimize those adverse impacts of most concern to the public, with specific implementation budgets.

84. Additional public consultation is required in the future planning for the final alignment of the canal and in identifying families that have been affected by land acquisition or resettlement.

85. A public participation plan will be designed to promote active participation of the public in the subproject feasibility study as well as in subproject implementation, monitoring, and evaluation, to motivate the public to contribute to the subproject, develop a sense of ownership, and build capacity to continue with the subproject after external funding has ceased. Table 2 of the attached EMP provides an overview of the public participation plan for environmental issues.

B. Information Disclosure

86. The following environmental information disclosures will be made.

(i) The SEIA will be available for review at www.adb.org for 120 days before consideration of the project by the ADB Board. (ii) Copies of the SEIA and EIA will be made available on request. (iii) All environmental monitoring reports will be available at www.adb.org.

IX. CONCLUSIONS

A. Results of Environmental Impact Assessment

87. The proposed water resource subproject consists of four integrated parts. Significant adverse environmental impacts are identified in conjunction with parts 2 and 3, mainly as a result of Xixia Canal and distribution system construction activities. No negative physical environmental impact will arise from parts 1 and 4. The results of the SEIA indicate that the environmental classification of the proposed subproject as category A is appropriate, as the revised Xixia Canal alignment passes through the Xixia Tombs protection area, though not the core area of the Xixia Tombs.

88. The overall environmental benefits of the subproject are expected to be significant. The subproject will result in greater water availability through increased in the efficiency of water supply, distribution and use. The increased water supply capacity provides a guaranteed water source for the wetlands and also for alternative water uses in the project area. It will achieve

Appendix 5 83 efficient and reasonable use of land and water resources. The improved water use efficiency and ecosystem benefits will promote socially and economically sustainable development. The increased water use efficiency will also reduce the risk of secondary soil salinization.

89. The potential negative environmental impacts are mostly associated with the construction activities of the Xixia Canal extension. The major environmental concerns were the protection of cultural relics (i.e. the Xixia Tombs) and the water balance. The detailed analysis indicates that the subproject requires no additional water from the Yellow River and relies instead on increasing the efficiency of conveyance and water use to provide additional water for wetlands and extending the irrigation system.

90. To protect the Xixia Tombs, the alignment will be to the east of the Yanshan Road, which is located well away from the boundary of the Xixia Tombs core area. A reverse siphon culvert (15.144 km in length) will be constructed for this section, and extend past the army base to minimize aesthetic impacts to the Xixia Tombs. Further mitigation measures for the reverse siphon culvert construction include: (i) additional communications and discussions with the Xixia Tombs, the relevant cultural authority and the army base are required; (ii) temporary land occupation will be planned well ahead of construction; (iii) a cultural relics survey should be conducted along this section before the construction of the reverse siphon culvert; and (iv) procedures will be established so that cultural sites can be identified and protected if they are discovered during construction.

91. The adverse impacts generated by the subproject will be avoided or reduced to acceptable levels by taking appropriate mitigation and compensation measures. The main measures include: (i) careful selection of the alignment of Xixia Canal and construction sites to avoid sensitive locations; (ii) control of noise, dust, and wastewater releases during construction; (iii) soil erosion control during earthworks; and (iv) landscaping after subproject completion.

92. The adverse impacts will be mitigated, including permanent loss of about 3,965 mu of land, for which appropriate compensation will be paid.

93. The overall analysis of the subproject indicates that the results are robust and the proposed investments are economically and environmentally justified, if the mitigation is provided for protection of cultural relics.

B. Recommendations

94. All mitigations defined in the SEIA and EMP must be adopted during subproject implementation. All aspects of environmental monitoring and institutional arrangements defined in the SEIA will be implemented. The public participation plan should be fully developed and adopted during subproject implementation.

95. The EIA report was modified in response to comments given at the review workshop, and then submitted to Ningxia EPB for final approval in accordance with the PRC’s EIA law and related procedures.

84 Appendix 5

X. ENVIRONMENTAL MANAGEMENT PLAN FOR THE SUBPROJECT

A. Introduction

96. The environmental management plan (EMP) covers all phases of the subproject from preparation through commissioning and operation, and aims to ensure the monitoring of environmental impacts and implementation of environmental mitigation measures. A map of the subproject is in page 91.

97. Environmental monitoring programs will be carried out and the results used to evaluate: (i) the extent and severity of actual environmental impacts against the predicted impacts, (ii) the performance of environmental protection measures or compliance with related rules and regulations, (iii) impact trends, and (iv) the overall effectiveness of the subproject EMP.

98. Environmental protection measures will: (i) mitigate environmental impacts, (ii) ensure compliance with environmental regulations, (iii) provide compensation for lost environmental resources, and (iv) enhance environmental resources.

B. Summary of Potential Impacts and Mitigation Measures

99. Potential impacts of the subproject during the design, construction and operation phases, as identified by the environmental impact assessment (EIA), as well as corresponding mitigation measures designed to minimize the impacts, are summarized in Appendix 3.

100. The mitigation measures will be incorporated into tender documents (where appropriate), construction contracts and operational management plans, and will be implemented by contractors and the implementing agency (IA) under supervision of the provincial project management office (PPMO). The effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether they should be continued or improvements made. Improvements must be confirmed through stipulated environmental management procedures.

C. Environmental Monitoring

101. The project monitoring program will focus on the environment within the project area. The subproject approach to environmental monitoring is to utilize appropriately qualified monitors who will visit intervention sites at key times to ensure that mitigation measures are being implemented, and that negative impacts are not taking place. At the beginning of subproject implementation, the PPMO and IA will develop comprehensive subproject performance management systems (PMS) procedures to systematically generate data on inputs and outputs of the subproject components, together with detailed environmental and related social economic indicators to be used to measure subproject impacts.

102. The detailed environmental monitoring program considers the scope of monitoring, parameters and frequency of monitoring, data processing, and quality control requirements. The monitoring will follow the methodology provided in the national standard methods for monitoring pollutants.

103. Construction should emphasize protection of cultural relics, especially in the area from Xixia Canal to the Xixia Tombs. For all construction activities, appropriately qualified monitors should visit each construction site regularly during key activities to ensure that recommended

Appendix 5 85 mitigation measures are being implemented. The indicators for environmental impacts include water (amount drawn and quality), irrigation area, ration and water use efficiency, soil salt concentration, and relevant economic and social data such as agricultural yield and income. Special emphasis should be focused on air and noise pollution during construction, as well as on water quality monitoring during the operation phase. Table 4 describes environment monitoring program requirements and key indicators.

Table 4: Environmental Monitoring Requirements and Key Indicators

Items Monitoring Details

Construction Phase

Cultural Relics Monitoring Construction site along the canal, especially for the section of the Locations reverse siphon culvert along the Xixia Tombs protection area.

Any evidence of cultural relics (report to and ask staff from relevant Parameters cultural protection agency if unsure).

Monitoring arrangement Throughout the construction phase

Responsible agency IA and contractors

Air Monitoring

Locations Site boundary, especially for the sites close to villages

Parameters TSP, SO 2 and NO x

Monitoring arrangement Various times and durations, at least once every three months

Responsible agency IA and contractors

Noise Monitoring

Locations Sensitive areas (villages) within 150 m from construction sites

Parameters Noise

Monitoring arrangement Various times and durations, at least once three months

Responsible agency IA and contractors

Operation Phase

Water Quality Monitoring

Locations At each inlet and outlet point

Parameters COD, SS, Heavy metals, pH, turbidity, organic substances

Monitoring arrangement Monthly, and more frequent if abnormal results obtained

Responsible agency IA IA = implementing agencies,COD = chemical oxygen demand, SS = suspended solids. TSP = total suspended particles.

86 Appendix 5

104. The IA and contractors will be responsible for implementing the environmental monitoring program. Technical studies may be contracted to certified agencies; these monitoring programs and budgets will be included in the construction and operation contracts. The IA will make appropriate arrangements for monitoring in consultation with the EPB, and monitoring reports will be made available to the EPB on a monthly basis. When complaints are received from the public, EPB’s monitoring staff will conduct additional inspections immediately. Table 6 summarizes environmental responsibilities.

105. Under the subproject PMS framework, baseline and progress data will be reported at assigned time intervals by the IA. The IA will be responsible for analyzing and consolidating the data through their management information system. The subproject PMS will be designed to permit adequate flexibility to adopt remedial action regarding project design, schedules, activities, and development impacts. The PPMO and IA will refine the subproject PMS framework, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 3 months after loan effectiveness.

D. Public Consultation

106. Direct public participation was conducted through two rounds of public consultations by EIA preparation agencies and the IA following the People’s Republic of China’s (PRC’s) national guidelines and Environmental Impact Assessment Technical Guidelines, and the PPTA consultants, following ADB’s Environmental Assessment Guidelines .629

107. Plans for public involvement during the design, construction, and operation phases were developed during subproject preparation. These plans include public participation in: (i) monitoring impacts and mitigation measures during the construction and operation stages; (ii) evaluating environmental and economic benefits and social impacts; and (iii) interviewing the public after the subproject is completed. These plans will include several types of public involvement, e.g., site visits, workshops, investigation on specific issues, interviews, and public hearings (Table 5).

Table 5: Public Participation Plan

Organizer Approach Times Subject Attendees A. subproject Preparation IA, EIA Public At least once Project priorities, effects, Residents within preparation consultation attitudes to the project, and construction area agencies, suggestions PPTA team Expert At least once Specialists from workshop various sectors PPTA team Public At least twice Comments and Affected residents workshop recommendations of the and other public stakeholders

B. Construction Phase IA, PPMO Public At least once a Adjusting mitigation Residents adjacent to consultation year measures if necessary, construction sites and

629 ADB. 2003. Environmental Assessment Guidelines. Manila.

Appendix 5 87

Organizer Approach Times Subject Attendees and site visits construction impacts, representatives of comments and suggestions social and cultural sectors IA, PPMO Expert At least once Comments and Experts of various workshop or suggestions on mitigation sectors press measures, public opinions conference

C. Operation Phase IA, PPMO Public At least once Effects of mitigation Residents adjacent to consultation every 2 years measures, impacts of construction, water and site visits operation, comments and users suggestions IA, PPMO Expert As needed Comments and Experts of various workshop based on suggestions on operational sectors public impacts, public opinions consultation EIA = environmental impact assessment, IA = implementing agency, PPMO = provincial project management office.

108. The public participation plans are part of the subproject implementation and management plan. The IA is responsible for ensuring there is public participation during subproject implementation. The contractors will be asked to communicate and consult with the communities near the construction site. An eye-catching public notice board will be erected at each construction site to notify the public of the main construction activities and the construction duration. The board will also provide contact names and telephone numbers to enable members of the public to express any concerns and complaints about construction activities. Costs for public participation activities during subproject implementation will be included in the subproject environmental funding.

E. Responsibilities and Authorities

109. During subproject preparation and implementation, various organizations with different environmental management responsibilities have been involved and will be involved in the EMP. The PPMO, contractors, and IA will each nominate full-time, trained, and qualified environmental specialists to undertake environmental management activities and ensure effective implementation of the EMP. Table 6 shows environmental responsibilities for different phases of the subproject.

Table 6: Environmental Responsibilities

Phase Responsible Agencies Environmental Responsibilities

Preparation Environmental Institute Preparation of EIA and EMP for subproject Preparation PPMO, EPB Review and approval of the EIA including EMP Preparation ADB, PPMO Review and approval of the SEIA including EMP Design Design Institute Incorporate mitigation measures in engineering designs and contracts

88 Appendix 5

Phase Responsible Agencies Environmental Responsibilities Design PPMO, IA Review and approval of environmental measures Tendering Contractors, PPMO, IA Incorporate EMP clauses in the bids Construction EMMS, PPMO Advise on implementation of mitigation measures Construction Contractors Implementation of mitigation measures Construction EPB, EMMS, CSC Supervise implementation of mitigation measures Construction EPB, EMMS, IA, CSC Environmental monitoring and periodic environmental inspection Operation IA, WRD, PPMO Environmental monitoring, implementation of mitigation measures Operation EPB Supervise implementation of mitigation measures, respond to public complaints if any EIA = environmental impact assessment, EMP = environmental management plan, SEIA = summary environmental impact assessment, EPB = environmental protection bureau, PPMO = provincial project management office, IA = implementing agency, EMMS = environmental monitoring and management specialist, CSC = construction supervision company, WRD = Water Resource Department.

110. The Water Resource Department (WRD) will be the IA and as sub-borrower responsible for repayment of loan funds invested for the water resource subproject. Functional responsibility for various subcomponents will be assumed by divisions of WRD. The Ningxia Water Resource and Hydropower Development Company, under WRD, will serve as IA for the Xixia Canal construction undertaken in part 2. WRD’s Farmland Construction Office and other institutes under WRD will serve as IA for other subcomponent parts. The IAs will be responsible for environmental management and implementation of mitigation measures. They will ensure the EMP is carried out and will engage design institutes and professional consultants to help with environmental management at the preparation, design, construction, and operation phases. The IAs will be responsible for arranging environmental monitoring review and responding to any adverse impacts beyond those foreseen in the EIA. The IAs will also attend to the EPB’s and ADB’s requests for mitigating measures.

111. Construction contractors will be responsible for actual implementation of mitigation measures during construction and IAs will be responsible during operation.

112. In accordance with the EMP, the IAs will establish an environmental management office that will generally require two employees. During the subproject, this office will be responsible for: (i) implementing the EMP and developing further implementation details; (ii) supervising implementation of mitigation measures during construction; (iii) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (iv) developing and implementing internal routine environmental monitoring; and (v) reporting performance under the EMP to the responsible agencies. This office will be supported and supervised by the EPB and PPMO.

113. The PPMO will be established in the Ningxia Hui Autonomous Region Finance Department (NFD) and will have overall responsibility for environmental management of the Project. Under the supervision of EPB and NFD, one of the key duties of the PPMO is to supervise the implementation of all environmental mitigation measures and monitor programs recommended in the EIA. An environmental monitoring and management specialist (EMMS) will be appointed as full-time PPMO staff member.

Appendix 5 89

114. The EMMS will advise PPMO and the IAs on all aspects of environmental management and monitoring for the subproject components. The EMMS will: (i) review subproject environmental practices and procedures; (ii) provide guidance in environmental standard setting and assist in implementation procedures; (iii) advise on mitigation during construction and operation phases in accordance with the EMP; (iv) investigate and make recommendations on other environmental issues.

115. Environmental staff of PPMO, IAs and CSC will receive necessary training in environmental management, monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental management techniques. Funding for this possible training will be included in the subproject environmental budget.

F. Reporting and Supervision

116. PPMO will submit an appropriate baseline report to ADB, which will include the subproject background, construction activities, environmental conditions, measurement or sampling locations, analytical results, interpretation and implication of the monitoring results, determination of compliance status with regard to applicable regulations and standards, and recommendations for improvement. This report may be combined with the whole design report.

117. During the construction period, results from the monitoring by contractors and the CSC will be reflected in the construction weekly reports. The reports will include environmental issues during construction, mitigation measures taken if any, and consequences of the impacts to the environment and/or surrounding communities.

118. The contractors will be trained to take immediate actions to correct unexpected adverse impacts or ineffective or insufficient mitigation measures, as required by the EMP. PPMO and the IAs will also respond to these reports to ensure contractors have taken appropriate and timely action. Additional measures may be taken if needed to ensure all issues raised by these monitoring reports will be appropriately addressed.

119. Results from the detailed environmental monitoring program and mitigation actions for construction will be submitted monthly by the contractors and IAs to the EPB and PPMO. The EPB and/or ADB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

120. PPMO will submit to ADB the EMP progress reports, and information including subproject implementation and environmental performance of the contractors, IAs, and EMMS. These reports will include: (i) semiannual environmental reports on EMP implementation; and (ii) a subproject completion report no later than months after completion of the subproject. Progress reports will emphasize progress made in the areas of the reverse siphon culvert, monitoring results, and implementation of mitigation measures.

121. The PPMO will monitor and assess overall subproject activities under the PPMS, including environmental targets. PPMO will report to ADB twice a year on the physical implementation, including environmental aspects of the subproject, to ensure that its progress and impacts are monitored and reported in line with ADB requirements.

90 Appendix 5

G. Work Plan

122. Before construction, IA will develop detailed responsibilities and requirements for contractors and will provide detailed cost estimates of mitigation measures and environmental monitoring in the construction contracts. PPMO and the WRD will also detail the responsibilities of their EMMS and environmental management offices, and prepare their work schedules.

123. Before operation, the WRD will develop detailed work plan for environmental management and monitoring during operation based on the EMP. The work plan will be submitted to EPB and PPMO to help them to supervise implementation.

H. Procurement Plan and Cost Estimates

124. The IAs will develop detailed plans for procurement of equipment and materials and civil works for implementing mitigation measures and monitoring plans. These plans will be incorporated into the subproject contracts.

125. The cost of mitigation measures, the monitoring plan, EMMS and possible training will be borne by the subproject as a whole. A detailed breakdown of monitoring cost estimates will be prepared by the design institutes. The total cost of the environmental protection is CNY 2.3 million. Before implementing the monitoring plan, responsible agencies will present a further detailed breakdown of the estimated budget. During subproject implementation, the budgets will be adjusted based on actual requirements. Costs for all mitigation measures during construction will be included in the tender and contract documents and be borne by the contractors. Costs related to mitigation measures during operation will be borne by the IAs.

I. Mechanisms for Feedback and Adjustment

126. The effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. Adjustments to the EMP will be made if necessary. The EPB and PPMO will play critical roles in this feedback and adjustment mechanism.

127. There will be two tiers of feedback and adjustment. If EMP modification is requested by the contractors and/or IAs, EPB will review their proposals in detail. If the modifications are approved in principle, specific modifications will then be submitted by contractors and IAs to EPB for further review. Comments and suggestions from PPMO and ADB will also be considered by EPB and revisions to the EMP made, if necessary. Contractors and IAs will then implement the modifications.

Appendix 5 91

92 Appendix 9

POTENTIAL NEGATIVE SUBCOMPONENT ENVIRONMENTAL IMPACTS AND RECOMMENDED MITIGATION MEASURES 9 2 Appendix 5 Appendix

Potential Negative Environmental Subject Sc Ma Du Proposed Mitigation Measures Impacts

Screening of Potential Environmental Impacts of Parts and/or Activities: No negative physical environmental impact will be caused by Part 1: Develop an Integrated Water Resource Management Plan and Part 4: Improved On-Farm Water Use Efficiency. Significant adverse environmental impacts are identified in association with Part 2: Extension of the Xixia Canal and Part 3: Rehabilitation of the Xixia Irrigation Scheme. The significant adverse impacts are mainly caused by construction of Xixia Canal. Rehabilitation of the irrigation scheme will be mostly based on original distribution system. The anticipated environmental impacts and mitigation measures are analyzed below. 1. Design Phase The improper design of Xixia Canal G M Lt (i) The alignment of Xixia Canal will be carefully selected alignment may cause significant damage to to avoid adverse impacts to the Xixia Tombs and the army the Xixia Tombs. Poor project design may base; (ii) all temporary sites will be carefully selected to result in significant environmental and avoid or minimize potential impacts to the environment economic costs. and surrounding communities; (iii) mitigation measures such as compensation for land occupation will be incorporated into the project design.

2. Construction Stage Wastewater Wastewater generated by site construction S L St Appropriate septic disposal systems will be installed at activities and construction workers, and construction camps and operation sites. Drainage ditches runoff of silt-laden water will be built, and temporary septic tanks installed for Wastewater collection of wastewater. All construction equipment wash down areas will be equipped with water collection basins, including oil separators.

Air Dust in suspension from construction S L St Construction sites will be enclosed, exposed storage sites activities and transportation covered, or dust reduced with sprayed water, on-site storage of materials will be minimized, water will be sprayed at construction sites and on dusty roads, materials will be transported in covered vehicles or in closed containers, vehicle speeds will be controlled, and transport routes selected with a view to minimizing dust.

Appendix 9 93

Potential Negative Environmental Subject Sc Ma Du Proposed Mitigation Measures Impacts

Pollution from emissions of vehicles and Vehicles will receive proper maintenance and be operated construction machinery in compliance with relevant emission standards.

Noise Noise generated by vehicles and S L St Vehicles and construction machinery will be required to be construction machinery properly maintained and to comply with relevant emission standards. Construction arrangements will include prohibitions on the nighttime use of certain noisy machines (e.g. pile-drivers and concrete vibrators) if the construction site is close to villages.

Solid Waste Refuse generated on construction site S L Mt Waste will cleaned up in a timely manner, and transported in covered vehicles or in closed containers.

Disposal of surplus excavated material from S L Mt Surplus material will be reused for construction, construction activities. landscaping or agricultural purposes if suitable, or disposed of in sanitary landfills if testing shows material to be unsuitable.

Soil and water contamination from S L Mt Mitigation measures will include appropriate storage of inappropriate storage and disposal hazardous materials and waste in secure, covered areas with secondary containment. Hazardous waste will be stored separately from non-hazardous waste. All waste (hazardous and non-hazardous) will be removed from sites to approved waste disposal sites by licensed contractors. There will be no on-site landfills developed at any of the construction sites. Construction waste will be 5Appendix promptly removed from the sites. Burning of waste will be prohibited.

Vegetation Loss of or damage to vegetation (including L L St/Lt All construction works will be carried out so damage or 93 and Flora crops and fruit trees) because of permanent disruption to vegetation is minimized. Trees or shrubs will or temporary land occupation only be felled or removed if they impinge directly on the permanent works or necessary temporary works. After temporary works, the sites will be revegetated.

94 Appendix 9 94 94

Potential Negative Environmental Subject Sc Ma Du Proposed Mitigation Measures Impacts Appendix 5

Land See “Land Acquisition and Resettlement” L L St/Lt See “Land Acquisition and Resettlement” below below

Social Land lost L M St/Lt See “Land acquisition and resettlement” below

Impacts on public safety S L St Safety measures will be implemented at construction sites to protect the public, and warning signs will be provided to alert the public to potential safety hazards at and around the construction sites (especially road bridges and/or culverts and the reverse siphon culvert).

Traffic congestion caused by canal S L St Construction scheduling will consider impacts on traffic construction along the road, especially for congestion. Mitigation measures include constructing construction of the reverse siphon culvert temporary roads, careful selection of transport routes, and road bridges (culverts), including diversion of traffic at peak hours, repair of disturbed roads temporary inconvenience to the public. shortly after construction, and provision of interim traffic arrangements.

In conjunction with the relevant authority, traffic plans will be prepared prior to commencement of construction.

Cultural See “Historical, Cultural, and See “Historical, Cultural, and Archaeological” below Relics Archaeological” below

3. Operational Phase Water See “water balance and quality” below See “water balance and quality” below Soil Secondary soil salinization caused by the L L Mt Not required leakage

Social Impacts on public safety because of L L Mt Not required possible accidents such as breaks in the regulating tanks and canal bank slumping

Appendix 9 95

Potential Negative Environmental Subject Sc Ma Du Proposed Mitigation Measures Impacts

4. Land Acquisition and Resettlement Permanent acquisition of about 3,965 mu of L M Lt Compensation will be paid in a timely and adequate barren land for Xixia Canal. Limited land will manner, so that all affected persons will be at least as well also be permanently required for off as they would have been without the project rehabilitation of the Xixia Irrigation Scheme.

About 534 mu of land (including about 36 L H St Compensation is required. Temporary land occupation will mu farm land) will be temporarily occupied, be planned well ahead of construction to minimize the with temporary removal of vegetation impact of the disturbance. Land will be restored to its (including crops and fruit trees) and original condition on completion of construction. disturbance to livelihoods.

No other resettlement required except for The compensation for land acquisition and vegetation the land acquisition and vegetation removal removal will be included in the resettlement plan for the described above. subproject.

5. Historical, Cultural, and Archaeological Construction activities have the potential to G M Lt The alignment will be along the eastern side of the disturb cultural sites. Xixia Canal alignment Yanshan Road (along the Helanshan foothills), which is will pass through the Xixia Tombs site and well removed from the boundary of the Xixia Tombs core an army base with an airport, which may area. A reverse siphon culvert (15.15 km length) will be cause a significant damage to these sites if constructed for this section, which will be located outside improper approaches applied. the army base with minimal impact.

Further mitigation measures will include: (i) further communications and discussions with the Xixia tomb, 5Appendix relevant cultural authorities and the army base are required; (ii) a cultural relics survey should be conducted along this section before the construction of the reverse

siphon culvert; (iii) procedures will be established so that 95 cultural sites can be identified and protected if they are discovered during construction; and (iv) temporary land occupation will be planned well ahead of construction of the reverse siphon culvert.

96 Appendix 9 96 96

Potential Negative Environmental Subject Sc Ma Du Proposed Mitigation Measures

Impacts Appendix 5

Cultural sites encountered during G M Lt Mitigation measures will include immediate suspension of construction. construction activities if any archaeological or other cultural relics are encountered. The relevant cultural authority, as well as the PPMO, will be promptly notified, and construction will resume only after a thorough investigation.

The Xixia Canal alignment will encounter S M Sr Compensation and grave removal is required. about 20 family graves, which are important to families, although not a historical site.

6. Water Balance and Quality during Operation Phase Water The designed water draw by the Xixia R L Lt Not required balance Canal amounts to 142 million m 3 per year, which is equivalent to the original average annual water draw (off-take from the Yellow River via Xigan canal). The project has thus no impact in the water balance of the Yellow River.

After the construction of the project, the Not required integrated net irrigation ration will be reduced from 785 to 318 m 3/mu, which will save about 84.49 million m3. The water saving will benefit agricultural development and biodiversity protection.

Water quality No water pollution will be caused by Not required domestic and industrial waste water Accidental water quality impacts may result L L St Mitigation measures include planting trees or shrubs along from flooding originating in the piedmont, the bank of the canal corridor, and through proper design and windblown sand of engineering works such as flood-carrying aqueducts (flumes).

Appendix 9 97

Potential Negative Environmental Subject Sc Ma Du Proposed Mitigation Measures Impacts

Notes: Sc = scope (e.g., S = site, effect restricted to a small area within an intervention site spatial): L = local, effect restricted to intervention site Sr = subregional, effect extends beyond the intervention site but within the local watershed R = regional, effect extends throughout the subproject area G = global, effect extends beyond regional Ma = magnitude: L = low M = medium H = high U = uncharacterized Du = duration: St = greater than 1 day, but less than 1 year Mt = 1–10 years Lt = Greater than 10 years Appendix 5Appendix 97

9898 Appendix Appendix 11 6

REFERENCES

A. Documents and Reports 1. Asian Development Bank. 2003. Environmental Assessment Guidelines . Manila. 2. Asian Development Bank. 2003. Environmental Considerations in ADB Operations. Operations Manual , Section 20. Manila. 3. Asian Development Bank. 2002. Environment Policy of the Asian Development Bank . Manila. 4. Feasibility study reports of subprojects 5. Ningxia Institute of Environmental Science and Design. 2006. Environmental impact assessment (EIA) reports for subprojects, and composite EIA report for Project. 6. Gensuo. 2003. Ecologication Function Zonation of Northern Ningxia . Ningxia Institute of Agriculture. 7. Ma Jun. 2004. China’s Water Crisis . Translated by N. Yan Liu and L. R. Sullivan. Eastbridge, Norwalk, CT. Originally published as Zhongguo shmiweiji in Chinese (1999). Beijing: China Environmental Science Publishing House. 8. Shapiro, J., 2001. Mao’s War Against Nature: Politics and the Environment in Revolutionary China . Beijing: Cambridge University Press. 9. PPTA Final report, April 2007. 10. Asian Development Bank. 2004. Technical Assistance Report to the People’s Republic of China for Capacity Building to Combat Land Degradation . Manila. 11. Government of the People’s Republic of China. 2006. 11 th Five-Year Plan . Beijing.

B. Laws and Regulations 1. Environmental Protection Law of the PRC (26 December 1989) 2. Water Law of the PRC (1 October 2002) 3. Land Management Law of the PRC (29 August 1998) 4. Water and Soil Conservation Law of the PRC (29 June 1991) 5. Environmental Impact Assessment Act of the PRC (1 September 2003) 6. Water Pollution Prevention Act of the PRC (15 May 1996) 7. Solid Waste Pollution Control Act of the PRC (30 October 1995) 8. Noise Pollution Control Act of the PRC (29 October 1996) 9. Air Pollution Prevention Act of the PRC (29 April 2000) 10. Environmental Protection Management Regulations for Construction Projects, issued by the State Council of the PRC (December 1998) 11. Environmental Protection Management Directories for Construction Projects (No.14, 2002), issued by the State Environmental Protection Administration (SEPA) 12. Notice to Strengthen the Environmental Impact Assessment and Management of Construction Projects Financed by Loan from International Financial Organizations, jointly issued by SEPA, the State Planning Commission, the Ministry of Finance and the People’s Bank of China (21 June 1993) 13. Measures for the Administration of Preventing Pollution for Livestock and Poultry Breeding, issued by SEPA (8 May 2001) 14. Mei. 2006. State Environmental Protection Agency: Recommended Guidelines for Ecological Function Zonation,

C. Standards and Technical Guidelines 1. Environmental Impact Assessment Technical Guideline (HJ/T2.1-2.3-93, HJ/T2.4-1995, HJ/T19-1997, HJ/T88-2003), issued by SEPA 2. Environmental Risk Assessment Technical Guideline for Construction Project (HJ/T169- 2004), issued by SEPA

AppendixAppendix 6 11 9999

3. Technical Standards of Preventing Pollution for Livestock and Poultry Breeding (HJ/T81- 2001), issued by SEPA 4. Environmental Quality Standards for Surface Water of the PRC (GH3838-2002) 5. Quality Standards for Groundwater of the PRC (GB/T 14848-93) 6. Integrated Wastewater Discharge Standard (GB8978-1996) 7. Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918- 2002) 8. Water Quality Standards for Agricultural Irrigation (GB5084-92) 9. Water Quality Standards for Fisheries (GB11607-89) 10. Water Quality Standards for Scenery and Recreation Area (GB12941-91) 11. Standard of Environmental Noise for the Urban Area (GB3096-93) 12. Integrated Emission Standard of Air Pollutants (GB16297-1996) 13. Emission Standard for Odor Pollutants of the PRC (GB14554-93) 14. The Control Standards of Pollutants in Sludge for Agricultural Use of the PRC (GB4284- 84) 15. Pollutants Discharge Standard for Meat Processing Industries (GB13457-92) 16. Sewage Discharge Standard for Livestock and Poultry Breeding (GB18596-2001) 17. Standards for Environmental Air Quality (GB3095-1996) 18. Standards for Flood Control (GB50201-94) 19. Environmental Quality Standard for Soils (GB 15618-1995) 20. Standards for Industrial Solid Waste Sludge (GB18599-2001) 21. Industrial Noise Standard Limits (GB12348-90) 22. Standards for Construction Noise Limits (GB12523-90)