47071-002: Fujian Farmland Sustainable Utilization And

Home , Datian County, Guangze County, Jiaocheng District, Jin River (Fujian), Jiulong River, Longyan

Initial Environmental Examination (Draft)

Project Number: 470471-002 February 2016

People’s Republic of China: Fujian Farmland Sustainable Utilization and Demonstration Project

Prepared by the Fujian Provincial Department of Agriculture (Fujian Provincial Agricultural Affair Office) for the Asian Development Bank CURRENCY EQUIVALENTS (as of 25 November 2015) Currency unit – Yuan (CNY) CNY1.00 = $0.1565 $1.00 = CNY6.3898 In this report, “$” refers to US dollars.

ABBREVIATIONS

ADB Asian Development Bank GRM Grievance redress mechanism BOD5 5-day biochemical oxygen demand IEE Initial environmental examination CNY Chinese Yuan LIEC Loan implementation environment consultant COD Chemical oxygen demand MEP Ministry of Environment Protection CPMO County Project Management Office MPMO Municipal Project Management Office DO Dissolved oxygen PDRC Provincial Development and Reform Commission DOEP Department of Environmental Protection PIU Project Implementing Unit EHS Environmental, Health and Safety PPE Project Participating Enterprise EIA Environmental impact assessment PPMO Provincial Project Management Office EIR Environmental Impact Report PPTA Project Preparatory Technical Assistance EIT Environmental Impact Table PRC People’s Republic of China EMP Environmental Management Plan REA Rapid Environmental Assessment EMS Environment Monitoring Station SOE State Owned Enterprise EPB Environmental Protection Bureau SPS Safeguard Policy Statement FPG Fujian Provincial Government WHO World Health Organization FSR Feasibility Study Report WRB Water Resources Bureau FYP Five Year Plan WTP Water Treatment Plant GDP Gross domestic product WWTP Wastewater Treatment Plant GHG Greenhouse gas

WEIGHTS AND MEASURES

oC degree centigrade m2 square meter dB decibel m3/a cubic meter per annum km kilometer m3/d cubic meter per day km2 square kilometer mg/kg milligram per kilogram kW kilowatt mg/l milligram per liter L liter mg/m3 milligram per cubic meter m meter t metric ton mu 1/15 hectare t/a ton per annum

Data in all figures and tables in this IEE are sourced from Project FSRs and Subproject EIA Tables unless otherwise stated.

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

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

I TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ...... 1 A. Introduction ...... 1 B. Baseline Environment...... 2 C. Impacts and Mitigation Measures ...... 3 D. Capacity Building ...... 5 E. Associated facilities ...... 6 F. Climate Change ...... 6 G. Public Consultation and Grievance Redress Mechanism ...... 6 H. Environmental Management Plan ...... 7 I. Project Assurances ...... 7 J. Conclusion ...... 7 II. INTRODUCTION ...... 8 A. Project Rational ...... 8 B. The Proposed Project ...... 9 C. Environmental safeguards ...... 9 III. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 11 A. Planning Framework ...... 11 B. Legal and Administrative Framework ...... 12 C. Evaluation Standards ...... 13 D. Implementation Arrangements ...... 15 IV. DESCRIPTION OF THE PROPOSED PROJECT ...... 17 A. Project Overview ...... 17 B. The Subprojects ...... 17 C. Capacity Building ...... 24 D. Due Diligence of Existing Facilities and Approvals ...... 25 V. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA) ...... 27 A. Environmental Setting – Fujian Province ...... 27 B. Environmental Setting – Project Counties...... 27 C. Environmental Baseline at Project Sites ...... 40 D. Socio-economic and Resources Setting of Project ...... 43 VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 47 A. Project Benefits ...... 47 B. Project Benificiaries ...... 49 C. Subproject Screening and Assessment Scoping ...... 49 1. Subproject Screening ...... 50 2. Technical Guiding Principles ...... 50 3. Scoping of Assessment ...... 52 D. Pre-construction Phase: measures to be undertaken ...... 52 E. Impacts and Mitigation Measures ...... 53 1. Construction Phase Impacts ...... 53 2. Operational Phase Impacts ...... 60 F. Community Health and Safety ...... 68 G. Climate Change ...... 69

II 1. Greenhouse Gas Emissions...... 69 2. Climate Risk and Vulnerability Assessment ...... 71 H. Indirect, induced, and cumulative Impacts ...... 76 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 77 A. First Round Consultations ...... 77 B. Second Round Information Disclosure ...... 79 VIII. GRIEVANCE REDRESS MECHANISM...... 80 IX. CONCLUSIONS ...... 81 A. Project Impacts and Mitigation Measures ...... 81 B. Project Assurances ...... 83 C. Conclusion ...... 83 ATTACHMENT 1: ENVIRONMENTAL MANAGEMENT PLAN ...... 84 A. Introduction ...... 86 B. Institutional Arrangements and Responsibilities for EMP Implementation ...... 86 C. Project Readiness Inspection ...... 87 D. Summary of Potential Impacts and Mitigation Measures ...... 88 E. Monitoring and Reporting ...... 94 F. Training ...... 100 G. Grievance Redress Mechanism ...... 101 H. EMP Cost Estimates ...... 105 ANNEX 1: TERMS OF REFERENCE FOR PROJECT ENVIRONMENTAL POSITIONS ...... 107 PPMO Environment Officer...... 107 CPMO Environment Officers ...... 107 TOR for Loan Implementation Environmental Consultant ...... 109 ATTACHMENT 2: EROSION PREDICTION CALCULATIONS ...... 110 ATTACHMENT 3: INFORMATION ON THE SAMPLING OF BASELINE WATER AND SOIL QUALITY ...... 114 ATTACHMENT 4: FUJIAN GOVERNMENT LIST OF APPROVED PESTICIDES AND APPLICATIONS ...... 119 ATTACHMENT 5: WATER DEMAND AND SUPPLY ANALYSIS ...... 125

III I. EXECUTIVE SUMMARY

A. Introduction

1. This initial environmental examination (IEE) is for the Fujian Farmland Sustainable Utilization and Demonstration Project, Fujian province, People’s Republic of China (PRC). The project impact will be improved long-term farmland productivity and rural livelihood in Fujian Province. The project outcome will be climate-resilient and sustainable crop farming systems demonstrated in 13 project counties. The project has three outputs: (i) productive farmland established; (ii) sustainable farming technology and practices adopted; and (iii) institutional capacity strengthened. The first output will include land rehabilitation and agricultural demonstrations on valley floors and sloping lands. The assessment sections of this IEE focus mainly on outputs 1 and 2, since these comprise the major physical works of the subprojects.

2. The aim of the project is for environmentally sustainable and climate-smart agriculture, and the design of individual subprojects already included a range of environmental safeguards in the PRC Feasibility Reports. These have been added to by the domestic EIAs (DEIAs) and this IEE.

3. The project will be implemented by 19 agricultural enterprises engaged in tea and tea-oil production on slopeland areas and cropping, including rice, in the valley floors. These enterprises comprise state owned enterprises (SOEs) and private participating enterprises (PPEs), and are collectively termed the project implementing units (PIUs). The range of plantation and crop growing to be undertaken within each subproject is summarized in Table I.1. Each subproject cropping enterprise will be supported by irrigation and drainage infrastructure as well as farm tracks and shelterbelt establishment.

Table I.1: Subproject Types Project Project Implementing Unit PIU Type and area of land (mu) county Rice 10,000.0 Wuyishan Zhuzi Ecological Agriculture Wuyishan SOE Lotus 3,000.0 Co., Ltd Tea garden 2,000.0 Green rice 361.0 Fujian Zhengyuan Ecological Food Guangze SOE Organic tea garden 2,008.0 Town Co., Ltd Green tea garden 4,649.0 Tea garden 30,000.0 Fujian Datian County Golden Phoenix Datian SOE Tea oil camellia garden 20,000.0 Agricultural Development Co., Ltd Valley floor farmland 18,000.0 Youxi County Yangzhong Xinkaicheng SOE Tea oil camellia garden 10,198.0 Urban Construction Co., Ltd Youxi Youxi County Shenlang Edible Oil Nursery seedling base 14.5 PPE Co., Ltd Tea oil camellia garden 8,018.0 Ninghua State-owned Ecological SOE Tea oil camellia garden 26,500.0 Forestry Co., Ltd Fujian Ninghua County Ninghua PPE Tea oil camellia garden 2,394.0 Science and Technology Co., Ltd Ninghua Fujian Chunhui Tea Co., Ltd PPE Tea garden 3,454.0 Fujian Cuiyun Tea Co., Ltd PPE Tea garden 2,499.0 Fujian Jinxi Tea Co., Ltd PPE Tea garden 3,700.0 Fujian Houde Agro-forestry Ecological PPE Tea oil camellia garden 9,600.0 Co., Ltd Tea garden 3,592.0 Tea oil camellia garden 5,565.0 Longyu Ecological Industry Yongding SOE Pasture 4,140.0 Development Co. Ltd Farmland 8,395.0 Vegetable base 608.0 Xinluo Longyan Greenland Ecological SOE Tea garden 1,200.0

1 Project Project Implementing Unit PIU Type and area of land (mu) county Agriculture Development Co. Ltd Tea oil camellia garden 1,820.0 Rice 12,008.0 Ratoon rice 2,000.0 Pearl barley 2,690.0 Vegetable base 2,064.0 Green tea garden 3,428.0 Fujian Xinghe Investment Organic tea garden 6,651.0 Pinghe SOE Development Co. Ltd Tea oil camellia garden 6,328.0 Green Pomelo garden 12,691.0 Tea garden 3,210.0 Hua'an Fujian Hongsheng Gardening Co. Ltd PPE Tea oil camellia garden 1,756.0 (Zhangpu)

Nursery seedling base 427.0 Nursery seedling base 500.0 Fujian Farms Agribusiness Tea Co., Fu'an SOE Organic tea garden 4,200.0 Ltd Tea garden 3,800.0 Jiaocheng Fujian Lvyin Agriculture Co., Ltd PPE Tea oil camellia garden 4,460.0 Tea garden 3,200.0 Fujian Jianye Agro-forestry Zherong PPE Tea oil camellia garden 11,500.0 Comprehensive Investment Co. Ltd Farmland reclamation 500.0 Shouning Ningde Qilongxiang Agriculture Co. PPE Tea garden 6,000.0 (Dongqiao) Ltd Total 269,128.50 Source: PPTA and PMO data, November 2015.

4. A total of 269,128.5 mu of land will be included in project activities. Almost two thirds of the total activities (in terms of area) will be on the improvement of tea and tea-oil plantations on slopes. The total project land area comprises: (i) 263,880.5 mu farmland under active use and for which the project will expand or intensify the existing use; (ii) 4,748 mu of farmland under active use and for which the project will change the crop type; and (iii) 500 mu of unfarmed (abandoned) agricultural land, on which the project will establish new crops. About 191,730 mu are proposed for tea or tea-oil plantations, comprising the new establishment of plantations on abandoned agricultural terraces and rehabilitation of existing terraced plantations. This represents about 6% of Fujian’s total tea and tea-oil lands. On the valley floors, rice paddy and grain crop cultivation account for 51,264 mu, or 79% of the cropping.

5. Agricultural infrastructure included in the project covers: (i) 525 km of irrigation and drainage channels for all subprojects; (ii) in-stream weirs in five subproject; (iii) 708.5 km of farm tracks for farm machinery and plantation maintenance; (iv) planting of almost a million trees and shrubs for shelterbelts; and (v) 27 km of riverside embankment and dikes for valley floor farmland flood protection.

B. Baseline Environment

6. Fujian Province is located in the southeast of mainland PRC. Eighty per cent of the province is mountainous and it is the most forested province in the PRC, with 52.4% forest cover. Water resources are abundant, with high rainfall and extensive river systems. A key issue for the province is soil erosion, due to the mountainous landforms and high rainfall. There are 23 “key soil erosion counties” in Fujian, and where erosion protection is required for all agricultural developments on sloping land. Seven (Datian, Ninghua, Yongding, Pinghe, Hua’an, Shouning/Dongqiao, Fu’an) of the 13 project counties are key erosion control counties with more than 5% of their erosion lands classed as moderate, severe or extreme.

7. In most project counties, especially the slopeland sites, air, noise and water environments are of good quality with no major existing pollution or contamination issues. In order to maximize the likelihood that potential subprojects were able to demonstrate

2 sustainable farmland development and environmental benefits through project initiatives, the initial selection of project areas were remote from, and not affected by, industrial developments or mining and mineral processing runoff or pollution.

8. Environmental baseline values for water quality, air quality, and noise environment at all subproject sites were sampled by domestic EIA Institutes to assess compliance with relevant national standards. The closest waterbodies to the subprojects in all but two counties (Datian and Dongqiao) comply with Class III standard of GB3838-2002, which means that the water is suitable for water source protection for centralized drinking water supply, sanctuaries for common species of ﬁsh, and swimming zones. At Datian, the water quality at the subproject site is Class V and suitable only for agricultural irrigation and livestock. At Dongqiao, the water quality is Class IV and is suitable for general industrial water supply and recreational waters in which there is not direct human contact with the water.

9. Only one component of one subproject uses groundwater (Fujian Hongsheng Gardening Co., Ltd). The groundwater quality at this locality was sampled for the DEIA and complies with Grade III standard of the Groundwater Quality (GB/T 14848-1993).

10. The air quality at all sites complies with Class II of GB3095-2012, which is the standard for residential, commercial, industrial and rural areas. Ambient noise levels at all sites meet Grade II of GB3096-2008, which is the standard for residential, commercial and mixed industrial areas.

C. Impacts and Mitigation Measures

11. Site selection and screening. To avoid as many potential environmental impacts as possible, a comprehensive screening process was conducted by the government, design institutes and PPTA team early in the project design. The teams visited proposed project sites, checking slopes and forest cover, and meeting with the local bureaus of environment protection, forestry, and water resources to assess existing environmental values. As a result, one proposed subproject was removed in order to avoid the clearance of 8,600 mu of natural forest and shrub land. In five other subprojects (Jiaocheng, Youxi, Guangze, Ninghua, Xinlou), components involving a total of 30,083 mu of forest and shrub land clearing were removed from subproject designs. In two others (Datian and Yongding) subproject designs were changed to protect drinking water source zone and delete large capacity reservoir construction respectively. This early planning resulted in significant avoided impacts.

12. The project does not encroach on any naturally vegetated areas, ecological or environmentally sensitive areas, or habitats of rare or endangered species.The boundaries of all subprojects were examined to ensure that no natural vegetation (regrowth forest or shrublands) were included in lands to be developed for crops or agricultural infrastructure. This screening process resulted in potential impacts on biodiversity avoided.

13. Pre-construction. Mitigation of potential construction and operational impacts will begin with pre-construction measures relating to project readiness. Project site planning will be a formal requirement for each subproject to ensure that the layout of work areas and the scheduling of activities is in accordance with the impact mitigation prescriptions of the EMP. Measures to ensure that, prior to project implementation, the capacity to manage the project environmental safeguards is present in the project agencies are identified in the IEE and EMP.

14. Construction. The key construction issues are erosion, protection of stream banks, avoidance of naturally vegetated areas and protection of heritage sites. Potential contruction impacts include air and water pollution, noise and community health and safety.

3 15. Soil erosion is the major potential impact during subproject construction. There are 23 key soil erosion counties in Fujian, where land rehabilitation is being actively pursued by county governments and erosion protection is required for all agricultural developments on sloping land. Seven (Datian, Ninghua, Yongding, Pinghe, Hua’an, Shouning, Fu’an) of the 13 counties in the project are key erosion control counties with more than 5% of their erosion lands classed as moderate, severe or extreme.

16. Strict erosion control prescriptions have been set for PIUs, combining technical specifications of soil and water conservation for sloping land set in Soil and Water Conservation Law of PRC (25 December 2010) and those developed during the PPTA. Of the subprojects identified as having the highest erosion potential, four also involve large volumes of earthworks. Mitigation measures are set to limit soil erosion during construction. These measures will apply to all subprojects, since all involve some development of sloping land, however the four subprojects identified will be subject to special scrutiny under the EMP.

17. Riverside embankments will be implemented by four subprojects (Wuyishan, Datian, Yongding, Xinluo) to support the valley floor farmland irrigation and provide flood protection. Embankment construction along streams in valley floor cropping areas will be scheduled for October to February, to complete work during the lowest water levels of the year. A setback of 20 m from the stream banks will protect the trees currently existing along the banks.

18. During the course of the PPTA subprojects were screened to avoid any loss of biodiversity. Small boundary changes to avoid natural forest or shrublands were made in subprojects as a result and it is important that these small boundary changes are observed during project implementation. Strict control of construction will be checked by the county project management offices (CPMOs) to ensure that PIUs adhere to the boundaries of existing or abandoned farmland. Measures to stop work spreading onto naturally vegetated areas are to be included in site construction planning and cover the assignment of work areas and access corridors to avoid occupying land randomly. Construction machinery and construction materials will not be placed in naturally vegetated areas.

19. One subproject, Yongding, is near a World Heritage Site (Yongding Tulou Circular Earthen Structures). The subproject does not encroach upon the core or buffer protection areas. To avoid impacts, no vehicles hauling materials or equipment to and from the site will be allowed to pass through the World Heritage site core and buffer zone, to avoid dust, noise and vibration impact on the Tulou houses. Damage to any trees or shrubs on the ridgetop, which provides a backdrop to the World Heritage Site is strictly prohibited.

20. Potential construction impacts on air quality, on water quality of nearby suface waterbodies and groundwater, and on the noise environment have been reviewed and concluded to be minor and readily minimized through mitigation measures which are set out in the EMP.

21. Operations. During the operational phase, there is potential for negative environmental impacts associated with: (i) the exploitation of water resources; and (ii) use of agricultural chemicals. For water use, detailed irrigation demand and supply analyses have demonstrated the sustainability of the proposed water use levels of the subprojects. Water requirements will be sourced from runoff only (11 of 19 subprojects), runoff and stream (6 subprojects), stream only (one subproject), and runoff and groundwater (one subproject). Water storage capacity will be improved in all subprojects. For the subprojects utilizing runoff, the proportions of water collected range from less than 1% to near 40%, i.e. 75 to 99% of total runoff volumes will return to waterways. For the subprojects extracting water from streams, the mean proportion of water extracted (compared to flow volume of the first upstream tributary) is around 18%. Of these extraction volumes, 20-30% will subsequently return to the streams through surface flow.

22. For the use of agricultural chemicals, the project will implement increased use of organic fertilizers and innovative management and cultivation practices for pest control. This will result in a net reduction in the application of agricultural chemicals in the subproject sites. For fertilizers, about 12,000 tons/year of chemical fertilizer will be replaced by organic fertilizer. For pesticides, due to the unpredictable nature of disease and pest infestations, predicted reductions in pesticides cannot be quantified, but will be strictly monitored and included in progress reports.

23. Other potential impacts in the operational phase of subprojects are: erosion during crop management; solid waste handling and disposal; and in-stream weir operation.

24. Measures to prevent erosion during cultivation and tillage practices on sloping lands will center on the use of narrow terraces (inclined back towards the hillside and following the contours, with ditches on the inside edge of each terrace to harvest runoff and collect eroded soil materials. Interception dams1 to intercept runoff from slopes, and storage ponds and tanks, will be maintained to store water for irrigation and intercept sediments eroded from the tea gardens.

25. Risks associated with solid waste handling are expected to be small. In all townships, established litter collection processes and transport systems to nearby landfills are already in place. Volumes of waste produced during construction and operation will be small and manageable because: (i) project activities are spread across 19 counties; (ii) the nature of the project does not generate large or diverse volumes of waste; (iii) the main waste products to be generated, plastic mulch and/or packaging for agricultural chemicals, will be minimized through the use of biodegradable plastic mulch, improved mulching (to reduce the need for plastic film), reduced chemical application, recycling of the fertilizer bags, and, inventorying and control of the pesticide packaging.

26. The design of the existing and operating in-stream weirs include gates which maintain the flow of the waterbodies and allow passage of fish. Shelterbelt forests planted in the subprojects will use only native species to improve local biodiversity.

27. Occupational and community health and safety. The PIUs and construction contractors for the subprojects will include an environmental health and safety management plan, as part of their Site Management Plan as required by the EMP. The contractors’ performance and activities for occupational health and safety shall be incorporated in their monthly progress reports.

28. The safety and health of workers and residents may be at risk from construction (especially earthworks) and operations (especially the use of machinery on sloping land). Residents may also be affected by noise and dust. Strict health and safety measures will be implemented during construction and operation.

D. Capacity Building

29. Part of the rationale for the project is that that sustainable land use in Fujian cannot be achieved without outside assistance, particularly to promote best-use practices. FPG seeks to avail itself of the experience and knowledge that can be accessed through the proposed project, to achieve the target of sustainable use of its farmland. The project has therefore been designed with a significant capacity building component.

1 Small dams along hill slopes aimed to catch water from runoff. Water is then transferred by channel or pipe to larger water storage structures.

5 30. Each of the subprojects to be undertaken by a PIU have a capacity building component based on the needs (i.e. new green and organic products farming methods will be introduced to the cooperated farmer coopratives, village committee and farmers due to current traditional farming approaches, which leads low productivity and low quality of agro-products). This comprises: training (for both participating farmers and PIU managers); support to farmer cooperatives; establishment of a farmland infrastructure management and maintenance associations; a range of product certifications; purchase of quality testing equipment; and establishment of an agricultural information exchange platforms (internet facilities). Individual PIU subprojects have included, according to their industry types and cultivation models, research on irrigation efficiencies and water saving technologies; the setting up of on-farm meteorological stations; study tours; and establishment of pest control and prevention units.

31. In total, approximately 62,990 person-days of training on agricultural production techniques and practices will be provided to farmers, along with 7,800 person-days of training to PIU managers and local agricultural technicians.

E. Associated facilities

32. In nine subprojects, products made from project-supported activities will be processed in existing facilities owned and operated by the same PIUs. Due diligence on the environmental approval and compliance status of these facilities has been undertaken. All PIUs with existing facilities which will process subproject products have documented environmental approvals.

F. Climate Change

33. A climate risk and vulnerability assessment (CRVA) was conducted for the project. The subproject components most vulnerable to increases in temperature and decreases in rainfall are irrigated crops, the main focus of the project. The vulnerability comes from (i) increasing water stress and higher water demand from crops due to higher temperatures; and (ii) declining water availability for rain-fed crops and irrigation from site catchments and local waterbodies due to lower rainfall. The project water supply and demand analysis was calculated for a conservative rainfall/runoff exceedence value of P=90%,2 and showed that planned use of water resources by the project was sustainable, mainly due to the widespread harvesting of site runoff water. A sensitivity analysis using the worst 2035 scenario for increased temperature and reduced rainfall confirmed the sustainability.

34. Based on the total area of project crops and the emission rates from these cropping activities, greenhouse gas emissions were calculated for the project. Emissions for cultivation on valley floors (rice, grain, vegetables and pasture) total 62,500 tons CO2e/year. Emissions for slopeland cultivation (tea and tea-oil) total 14,380 tons CO2e/year. Emissions related to power usage on-site (predominantly by pumps) will produce an estimated 1,300 tons CO2e/year. The total, at approximately 78,180 tons/annum is below the 100,000 tons/year threshold in ADB’s Safeguard Policy Statement (SPS, 2009) for significant emissions. Emissions will be offset by carbon sequestration achieved by the 191,730 mu of tea and tea-oil plantations, and extensive shelterbelt plantings.

G. Public Consultation and Grievance Redress Mechanism

35. Public consultation was conducted for the project by PPTA team and domestic EIA institutes. Meetings with project local government agencies have also been conducted. A grievance redress mechanism (GRM) has been developed in compliance with ADB’s SPS

2 P=90% are rainfall/runoff values which would be exceeded 90% of the time (i.e. a 1 in 10 year drought).

6 requirement to address environmental, health, safety, and social concerns associated with project construction, operation, and land contracting arrangements.

H. Environmental Management Plan

36. A project environmental management plan (EMP) has been prepared to mitigate and manage the potential environmental impacts of project construction and operation (Attachment 1). The EMP includes institutional responsibilities, training needs, reporting schedules, pre-construction requirements, operational management prescriptions, GRM, monitoring and reporting, and costs for implementing the EMP. To support EMP implementation, the PMO will: appoint a qualified environment officer within the provincial PMO (PPMO) and each CPMO; recruit a loan implementation environment consultant (LIEC) (as part of the loan administration consultant services); and ensure that all PIUs have arranged contractual agreements with qualified environment monitoring stations (EMS) to conduct the environmental monitoring described in the EMP.

I. Project Assurances

37. The project will comply with all applicable PRC laws and standards as well as the requirements in the project EMP for impact mitigation, performance monitoring and reporting, capacity building, and the establishment and operation of the GRM. Additional project-specific assurances have been developed to further reduce risks, including for erosion control, scope of operations, and pesticide use (Section IX.B).

J. Conclusion

38. The project design has been developed toward the maximization of erosion control, avoidance of new land conversion, and the physical location and management of subprojects to avoid impacts. For environmental safeguards, assuming full and effective implementation of the project EMP (Attachment 1), the potential environmental impacts identified in this IEE are expected to be mitigated to levels which comply with the relevant PRC standards.

7 II. INTRODUCTION

A. Project Rationale

39. Fujian covers a total land area of 120,146 km2, with a total population of 37.74 million3, of which, 22.93 million live in the urban area. Poverty rate is 2.37% of the total population in the province. Agricultural output value in 2013 was CNY 317 billion (21.5% of provincial gross domestic product, 1,473.712 billion). In 2014, total tea plantation area was 2,215,000 ha4 (9.72% of the national total) while tea production was 347,000 tons (18.48% of the national total and highest in the PRC). The tea sector involves nearly 10% of the total provincial population. Annual oil tea camellia seed production has increased from 62,983 tons in 2000 to 138,161 tons in 2013.5 Tea-oil camellia development is promoted by the provincial government and has become a main source of increasing income for the rural population.

40. High levels of agricultural production in Fujian have resulted in high usage of chemical fertilizers and pesticides. In 2013, total fertilizer use was 4.13 million tons6 with low fertilizer application efficiency (about 30%). The average application rate is 25.9 kg/mu, 15% higher than the national average. Excessive use of fertilizer and pesticides has resulted in non-point source pollution, soil acidification, and declining soil fertility and organic matter content. In 2013 total pesticide use was 57,800 tons.

41. The other major constraints on agricultural development in Fujian are soil erosion and lack of farmland infrastructures (poor farm tracks and limited irrigation facilities). On the valley floors, infrastructure is old and poorly maintained. On slopelands, agriculture is subject to soil erosion due to inappropriate land management. In the last 30 years, efforts to control erosion have made progress in reducing the problem; in 1985 the ratio of severe and medium soil erosion to all erosion classes exceeded 37%,7 and in 2001 the ratio had dropped to 9.98%.8

42. Reviews by the Ministry of Agriculture9 have concluded that sustainable land use cannot be achieved without outside assistance, particularly to promote best-use practices. The Fujian Provincial Government (FPG) wishes to benefit from the experience and knowledge that can be accessed through the project, to achieve sustainable use of farmland.

43. The project is in line with the Asian Development Bank (ADB)’s country partnership, 2011-2015 for the PRC10 in supporting the government’s overarching strategic goal by focusing on inclusive and environmentally sustainable growth and the ADB operational plan for agriculture and natural resources which promotes increased productivity and resource efficiency, agribusiness development, and enhanced food safety and quality.11 The project is also consistent with the updated ADB country strategy (2016-2020) that will focus on the following three strategic priorities: inclusive economic growth under the "New Normal", help the PRC realize "ecological civilization", and promote regional cooperation.

3 Fujian Provincial Statistic Book. 2014. 4 China Agricultural Yearbook. 2013. 5 Fujian Agricultural Statistic Book. 2014. 6 Ibid. It comprises from 1,674,100 tons of nitrogen fertilizer, 928,100 tons of phosphate fertilizer, 554,800 tons of potash fertilizer, and 975,600 tons of compound fertilizer respectively. 7 Medium soil erosion: annual soil loss from 1,500-2,500 ton per km2. Severe soil erosion: annual soil loss above 2,500 ton per km2. 8 Director of Soil Conservation Station of Fujian province. 9 Opinions on Taking Measures to Prevent and Control Agricultural Nonpoint Source Pollution, MOA. No.1 Nongkejiaofa [2015], 10 April 2015. 10 ADB. 2012. Country Partnership Strategy: People’s Republic of China, 2011–2015. Manila. 11 ADB. 2015. Draft Operational Plan for Agriculture and Natural Resources: Promoting Sustainable Food Security in Asia and the Pacific in 2015–2020. Manila.

B. The Proposed Project

44. The project impact will be improved long-term farmland productivity and rural livelihood in Fujian Province. The project outcome will be climate-resilient and sustainable crop farming systems demonstrated in 13 project counties. The project outputs will be (i) productive farmland established, (ii) sustainable farming technology and practices adopted, and (iii) institutional capacity strengthened.

45. The project will be implemented by 19 agricultural enterprises distributed among the 13 counties engaged in tea and tea-oil production on slopeland areas as well as other cropping including rice, in the valley floors. These enterprises will comprise both State Owned Enterprises (SOE) and Private Participating Enterprises (PPE) and will be collectively called Project Implementing units (PIUs).

46. Most of the subproject sites are in counties with poor catchment condition resulting in water loss and soil erosion. The sites in mountainous areas have low soil fertility so that existing productivity is low. Irrigation systems and facilities are often poorly planned and rudimentary, lacking the equipment and infrastructure to provide sustainable water use. Irrigation canals and drainage channels in valley floor sub-project sites have fallen into disrepair and resources for rehabilitation and maintenance are limited. This has resulted in limited irrigation during the dry season and constraints in draining flood waters from cultivation areas during the wet season. Existing tracks do not allow access for advanced machinery for cultivation and harvesting, with the result that these tasks are mainly done by manpower, which further limits productivity.

47. Selection of project counties focused on addressing these existing constraints as well as the objective of operating in areas of rural poverty and providing demonstration of sustainable and climate smart agriculture to a receptive audience. Project county selection against these factors is summarized in Table II.1.

Table II.1: Project County Selection Selection criteria Key poverty Key water and Sustainable Project Project Municipality alleviation soil conservation agriculture county county county demonstration area Wuyishan √ Nanping Guangze √ √

Datian √

Sanming Youxi √

Ninghua √ √

Yongding √ Longyan Xinluo √

Pinghe √ √ Zhangzhou Hua'an √

Fu'an √

Jiaocheng √ Ningde Zherong √ √

Shouning √ √

C. Environmental safeguards

48. The project is classified ‘Category B’ for environment under the ADB Safeguard Policy (SPS, 2009), requiring preparation of an IEE. The project aims to improve the expansion and operational, environmental, and social management of key agricultural industries in Fujian Province. The scope and magnitude of potential environmental impacts have been categorized under the PRC’s EIA regulations as requiring preparation of an “EIA Table”

(projects with lower potential impacts). This IEE has been prepared based on information in the individual Feasibility Study Reports (FSRs) and PRC environmental impact assessment documents for each PIU, as well as site visits to the subprojects by the PPTA Environment Team.

49. The IEE includes an environmental management plan (EMP) (Attachment 1). This is the key guiding document for environmental-related issues in the construction and operational phases of the project. The potential impacts of project components are identified in the IEE, and the mitigation and protection measures to avoid, reduce, and/or mitigate these impacts to acceptable levels are described in the EMP. The EMP also defines the roles and responsibilities of relevant institutions, procedures and the EMP budget. The EMP draws on the findings of the project IEE, PPTA team’s investigations and consultations with the relevant government agencies.

50. The EMP will be coordinated by the PMO and implemented by the PIUs and their construction contractors. The EMP will be incorporated within Technical Specifications for construction, and will also be made available to the detailed design team to ensure all pre-construction mitigations are included within the Projects’ final design.

III. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Planning Framework

51. The PRC’s 12th Five Year Plan (FYP) (2011–2015) supports the long-term goal of building a harmonious and moderately prosperous society through livelihood improvement and regionally balanced and environmentally sustainable growth. The PRC’s 13th Five Year Plan (FYP) (2016-2020) focuses strongly on environmental protection. It states that, with income levels growing, the PRC’s population is starting to see that the quality of the environment impacts the quality of life and that high pollution levels need to be controlled to maintain social stability. Enterprises will have to be prepared for higher operational costs to meet the stricter enforcement of environmental protection measures.

52. The 13th FYP will be released in 2016. In the interim period, Fujian Province’s policy and implementation response are in the following documents:  Fujian Provincial Resolution Concerning Some Major Issues in Comprehensively Deepening Rural Area Reform to Accurate the Development of Modern Agriculture. (2014)  Fujian Provincial 12th Five Year Plan on Environmental Protection and Ecological Development (2011-2015);  Fujian Provincial Land Utilization Master Plan (2006-2020);  Fujian Provincial Tea Industry Development Regulation (issued in 2012);  Fujian’s implementation of Land Administration Law of the PRC (issued in 1999);  Fujian Provincial Department of Agriculture’s 12th FYP Mid-term assessment report (2013)  Fujian Oil-Tea Industry Development Plan (2010)

53. Under the National Agricultural Sustainable Development Plan (2015-2030)12, Fujian Province is classified as a development priority zone, and for reducing the application of chemical fertilizers and pesticides, increasing red soil reclamation, controlling soil erosion, and promoting ecological, featured, and high efficiency agriculture, to establish high quality products and production systems. Major investment should go to (i) water and soil resource protection engineering13; (ii) agricultural and rural environmental control;14 (iii) agricultural ecological environment reclamation; and (iv) piloting and demonstration projects. The plan aims to promote green cultivation, create “high standard arable land” with better facilities, protect arable land, build irrigation works, and water conservation.

54. The Ministry of Environmental Protection (MEP) has launched ecological civilization pilot demonstration activities and Fujian Province was the first pilot province for ecological civilization (March 2014) to experiment and subsequently offer replicable solutions in sustainable development. As a pilot province, the FPG will build on existing experiences in agriculture and environmental protection and use the loan project to demonstrate agricultural improvements in less developed areas.

12Released by the Ministry of Agriculture (MOA), National Development and Reform Commission (NDRC), Ministry of Science and Technology, Ministry of Finance, Ministry of Land and Resources, Ministry of Environmental Protection, Ministry of Water Resources, State Forestry Administration on 20 May 2015. No. 145 Nongjiafa [2015]. 13Such as high standard farmland construction project, cultivated farmland protection and improvement project; high efficiency water-saving project (promoting sprinkler irrigation, micro irrigation, rainfall collection and irrigation, and integral control of water and fertilization), surface water over exploit and ground water overdraft area control project, and agricultural resources monitoring project. 14Specifically, livestock waste integrated management project, nitrogen and phosphate source control from chemical fertilizer and pesticide project, agricultural film and pesticide packages recycle and reuse project, straw integrated utilization project and rural environmental integrated management project.

B. Legal and Administrative Framework

55. The administrative framework for EIA in the PRC comprises national, provincial and local (municipal) environmental protection authorities. The national authority is the MEP, which promulgates laws, regulations and technical guidelines on EIA and pollution prevention and control, and which is represented at the provincial level by the Department of Environmental Protection (DOEP). The DOEP is the delegated authority to approve EIA reports for provincial construction projects, except those with national concerns and/or inter-provincial projects. Local or municipal-level Environmental Protection Bureaus (EPBs) enforce environmental laws and conduct environmental monitoring. For the project, the Fujian Provincial DOEP will approve the domestic EIAs.

56. The PRC has a wide range of laws, regulations, technical guidelines and standards that govern the way in which environmental protection and environmental impact assessment for construction projects must be implemented, including for pollution prevention and control on air, noise, water, ecology and solid waste, and technical guidelines on assessing atmospheric, noise, water and ecological impacts. The primary national laws and regulations that governed the EIA studies of the proposed project are provided in Tables III.1 and III.2.

Table III.1: Applicable Environmental Laws Title Year issued Environmental Protection Law 2014 revised Environmental Impact Assessment Law 2003 Water Law 2002 Water Pollution Prevention and Control Law 2008 Atmospheric Pollution Prevention and Control Law 2000 Noise Pollution Prevention and Control Law 1997 Forestry Law 1998 Wild Animal Protection Law 2004 Solid Waste Environmental Pollution Prevention and Control Law 2005 Water and Soil Conserveation Law 2010 Promotion of Clean Production Law 2002 Urban and Rural Planning Law 2008 Land Administration Law 2004 Circular Economy Promotion Law 2009 Contracting of Rural Land Law 2002 Cultural Relics Protection Law 2002

Table III.2: National and Local Administrative Regulations Regulation Year issued Regulation on Construction Project Environmental Protection and Management 1998 Regulation on EIA of Plans and Programs 2009 Regulation on Classification of Construction Project Environmental Protection 2009 Management Environmental Impact Assessment Public Participation Interim Guideline 2006 Circular on Strengthening the Management of Environmental Impact Assessment for 1993 Construction Projects Financed by International Financial Organizations Regulation on Protection of Wild Flora 1997 National Biodiversity Strategy and Action Plan (2011 – 2030) 2010 National Regulation for Public Disclosure of EIAs (NDRC) 2012 Environmental Protection Supervision Rules for Construction Projects 1998

57. The implementation of environmental laws and regulations is supported by a series of associated management and technical guidelines (Table III.3).

Table III.3: Applicable Environmental Guidelines

Regulation Year /Code Technical Guidelines for Environmental Impact Assessment: General Program HJ 2.1-2011 Guidelines for Environmental Impact Assessment: Atmospheric Environment HJ 2.2-2008 Technical Guidelines for Environmental Impact Assessment: Surface Water HJ/T 2.3-93 Environment Technical Guidelines for Environmental Impact Assessment: Ground Water HJ 610-2011 Environment Technical Guideline for Environmental Impact Assessment: Ecological Impact HJ 19-2011 Technical Guidelines for Environmental Impact Assessment: Public Participation January 2011 Technical Guideline on Environmental Monitoring Quality Management HJ 630-2011 Technical Guidelines for Noise Impact Assessment HJ 2.4-2009 Technical Guideline for Construction Project Environmental Risk Assessment HJ/T 169-2004

58. The environmental quality standard system that supports the implementation of the environmental protection laws and regulations in the PRC, and by which evaluation of environmental effects are measured, is grouped into two categories by function (i.e. pollutant emission/discharge standards and ambient environmental standards). The relevant main standards applicable to the project are shown in Table III.4.

Table III.4: Applicable Environmental Standards Standards Year /Code Ambient Air Quality Standard GB 3095-1996 Ambient Air Quality Standards15 GB 3095-2012 Air Pollutant Integrated Emission Standard GB 16297-1996 Hygienic Standard for the Design of Industries and Enterprises TJ 36-79 Environmental Quality Standard for Noise GB 3096-2008 Technical Specifications to Determine the Suitable Areas for Environmental GB/T 15190-94 Noise of Urban Area Environmental Quality Standards for Surface Water GB 3838-2002 Quality Standard for Ground Water GB/T 14848-93

59. Standards and guidelines specific to the Project sector are shown in Table III.5.

Table III.5: Applicable local project guidelines and standards Local Standards and Guidelines Year /Code Technical regulations for oil-tea Nursery LY/T 2447-2015 Technical regulations for planting camellia oil trees LY/T 1328-2015 Code for Design of Irrigation and Drainage Engineering GB50288-1999 Technical specification for water-saving irrigation engineering GB/T50363-2006 Water Resource Assessment Guideline SL/T238-1999 Guidelines for assessment of water-draw and utilization in Construction SL/Z 322-2005 Projects Youxi County camellia oil trees Plantation Technical Specification SYX/T 008 – 2011 Artificial afforestation technical regulations GB/T 15776-2006 Environmental Quality Standard for Green Food Production Area NT/T391-2013 Environmental Quality Standard for Pollution – Free Tea Production Area NY5020-2001

60. ADB environmental safeguard requirements. The project is classified as Category B for environment, requiring an IEE report.

C. Evaluation Standards

61. ADB’s SPS requires projects to apply pollution prevention and control technologies and practices consistent with international good practices as reflected in internationally

15 To replace GB 3095-1996 on January 1, 2016.

13 recognized standards such as the World Bank Group’s Environmental, Health and Safety (EHS) Guidelines.16

62. For noise and air quality, PRC standards are generally more stringent than internationally accepted standards defined in the EHS Guidelines. PRC ambient acoustic quality standards are defined for categories not directly attributable to the classification of the World Health Organization, but the standard limits are not significantly different. Where EHS standards exist for parameters and are relevant, they are used in parallel with PRC standards in this assessment.

63. For water quality assessment, the ambient environmental standard applied in this IEE is Surface Water Ambient Quality Standard (GB3838－2002) (Table III.6). The Class IV standard is the minimum required standard for irrigation and agricultural use. There is no EHS guideline or target for water quality in this context.

Table III.6: Surface Water Ambient Quality Standards (Unit: mg/L) Standard DO IMn BOD COD NH3-N (GB3838-2002) – Grade III ≥5 ≤6 ≤4 ≤20 ≤1.0 (GB3838-2002) – Grade IV ≥3 ≤10 ≤6 ≤30 ≤1.5 (GB3838-2002) – Grade V ≥2 ≤15 ≤10 ≤40 ≤2.0

64. Groundwater quality of the project will be assessed against Class III standards according to Quality Standards for Groundwater (GB/T14848-1993). This is the appropriate classification for rural/agricultural groundwater resources advised by the DOEP. The parameter concentration limits for this standard are shown in Table III.7.

Table III.7: Quality standards for groundwater Permanganate Total Nitrate Item pH Fluoride Total E.coli Index Hardness Nitrogen

Class 3 6.5—8.5 ≤3.0 mg/L ≤450 mg/L ≤20 mg/L ≤1.0 mg/L ≤3.0x10 /L III

65. The relevant ambient air quality evaluation standard for the rural areas where subprojects are to be sited has been nominated by the DOEP as Grade II of Ambient Air Quality Standard (GB 3095-1996). The concentration limits are shown in Table III.8.

Table III.8: Ambient Air Quality Grade II Standard Pollutant Time Standard (mg/m3) EHS16 (mg/m3) Annual average 0.06 SO2 Daily average 0.15 0.125-0.05 (0.02 guideline) Unit hour average 0.50 Annual average 0.10 0.07-0.03 (0.02 guideline) PM 10 Daily average 0.15 0.075-0.15 (0.05 guideline) Annual average 0.08 0.04 guideline NO2 Daily average 0.12 Unit hour average 0.24 0.20 guideline Daily average 4.0 n/a CO Unit hour average 10.0 n/a

66. In the construction phase, impacts from air pollutants from dust and earthworks will be assessed against Grade II standard (for construction in non-urban environments) specified in Air Pollutant Comprehensive Emission Standard (GB16297-1996).

16World Bank Group. 2007. Environmental, Health and Safety Guidelines General EHS Guidelines. Washington.

67. Noise environment for the project’s settings will be evaluated against Class 2 standards of the Environmental Quality of Noise Standard (GB3096-2008). The parameter concentration limits for this standard are shown in Table III.9.

Table III.9: Sound Environmental Quality Standards unit：dB (A) Standard Value Applicable Class Day-Time Night-Time Class 2 (Residential, commercial and industrial mixed area) 60 50

68. During operation, the level of noise from the sites will be assessed against the Class III Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008). The parameter concentration limits for this standard are shown in Table III.10.

Table III.10: Industrial Enterprise Site Noise Standard/ Social Life Ambient Noise Emission Standard Classification Day Leq[dB(A)]) Night Leq[dB(A)]) 2 60 50 3 65 55 4 70 55 EHS16 70 70

69. The soil quality standard for the rural areas of the subproject sites is Class 2 standard according to Environmental Quality Standards for Soil (GB15618-1995). The parameter concentration limits for this standard are shown in Table III.11.

Table III.11: Soil Environmental Quality Standards Item pH Cu As Zn Pb Hg Class 2 standard of ≤100 ≤250 ≤300 ≤0.5 6.5-7.5 ≤30 mg/Kg GB15618-1995 mg/Kg mg/Kg mg/Kg mg/Kg

D. Implementation Arrangements

70. The FPG will be the executing agency and the municipal governments will be the implementing agencies. The PPMO under Fujian Agriculture Department will be responsible for project implementation and coordination with ADB. At municipal level, the five municipal governments have established municipal project management offices (MPMOs) in the municipal Agriculture Offices for day-to-day project management and coordination among project counties. Similarly county project managing offices (CPMOs) have been established at county Agriculture Offices to manage the implementation of subprojects in each county.

71. The PIUs will comprise both SOEs and PPEs. The PPMO will be responsible for the coordination and administration of procurement activities while PIUs will undertake specific subproject and procurement activities.

72. The main institutions involved in the implementation of the project and their roles in relation for the IEE and EMP are in Table III.12.

Table III.12: Institutional Roles and Responsibilities Project implementation Management Roles and Responsibilities organizations Executing Agency – FPG Overall project guidance, coordination, supervision PCG – provincial PCG, Policy guidance and interagency coordination municipal PCG, county PCG) PPMO - within Agriculture On behalf of the executing agency, responsible for overall project Department (Agriculture Affair coordination and supervision including: preparation and Office) implementation; coordinate training and capacity development

Project implementation Management Roles and Responsibilities organizations activities; safeguards compliance; prepare and submit semi-annual environmental and social safeguard monitoring progress reports; compliance with loan and project agreements MPMO (implementing Responsible for project implementation at the municipal level: agencies): Nanping, Sanming, monitor subproject implementation and achievement of output Longyan, Zhangzhou, and indicators within the municipality; and, prepare and submit Ningde Municipalities semi-annual project progress report to PPMO. CPMO – county Agriculture Daily management activities for project preparation and Bureaus of 13 project counties implementation, incuding: quality assurance and quality control for project construction; review construction supervision works by the supervision agency; ensure PIUs comply with EMP; and, prepare semi-annual project progress reports and submit to MPMO FPG = Fujian Provincial Government, PCG = Project Coordination Group; PPMO = Provincial Project Management Office, MPMO = Municipal Project Management Office, CPMO = County Project Management Office, ADB = Asian Development Bank, EMP = Environmental Management Plan.

73. The PCG comprises the following agencies and organizations: Provincial Development and Reform Commission (PDRC), Finance Department, Agriculture Department, Water Resource Department, Forestry Department, Environmental Protection Department and the Womens Federation.

IV. DESCRIPTION OF THE PROPOSED PROJECT

A. Project Overview

74. The Project comprises three outputs: (i) productive farmland established, (ii) sustainable farming technology and practices adopted, and (iii) institutional capacity strengthened.

75. Output 1 – Productive Farmland Established. This output will include: (i) valley floor improvement (land preparation, flood protection, soil fertility) and demonstration; and (ii) sloping land rehabilitation (terracing and drainage) and demonstration. Valley floor improvement and demonstration will include 64,707.5 mu of valley floor demonstration areas developed for other crops including grains, vegetables, and lotus seeds. The main activities will comprise implementation of integrated improvement measures for the valley floors including land leveling and development of farm infrastructure such as farm tracks, water conservancy facilities (26.99 km of dikes/embankments for flood prevention, drainage ditches, canels, spray/drip irrigation equipment, etc.). Sloping-land rehabilitation and demonstration will include 204,421 mu of sloping-land demonstration area to be developed mainly for tea, oil tea and orchards. The main activities will involve rehabilitation measures for degraded sloping lands including terracing, and development of farm infrastructure such as farm tracks, and water conservancy facilities (water storage ponds, irrigation facilities).

76. Output 2 – Sustainable Farming Technology and Practices Adopted. This output will support PIUs and cooperatives through the provision of (i) agricultural equipment and materials to implement sustainable farming technology and practices such as soil conservation measures (e.g. application of organic fertilizer, zero or low tillage, mulching, and tree plantations for windbreaks and shade), integrated pest management, and other cropping technology (e.g. intercropping, crop rotation); and (ii) soil and water quality testing equipment. All the subprojects will adopt activities suitable for valley floor or slope land demonstration bases. The output will also include activities to provide each project township with professional soil and water quality testing equipment to assist in the formulation of balanced fertilizer application, if required. In addition, the output will facilitate certified green and organic production from part of the slopeland tea tree plantations.

77. Output 3 – Institutional Capacity Strengthened. This output will include (i) training of specialized farmer cooperatives on cooperative operation, production technology, and marketing; (ii) training of farmer trainers and farmers on good agricultural practices and technology, including requirements for green and organic product certification; (iii) establishment and capacity development of farmland infrastructure management and maintenance associations; (iv) consulting services for project management and establishment of a project performance monitoring system to develop the capacity of the EA and IAs for project management as well as monitoring and evaluation.

B. The Subprojects

78. The assessment sections of this IEE focus mainly on Outputs 1 and 2, since these comprise the major physical works of the subprojects. It comprises the environmental impact assessment of 19 PIUs engaged in tea and tea-oil production on slopeland areas and cropping (including rice) in the valley floors in 13 counties across Fujian Province (Figure IV.1). Of the 19 PIUs, 9 are SOEs and 10 are PPEs. The subprojects were identified by the FPG as fulfilling the requirements for government sponsored investment. They are existing agricultural enterprises capable of responding to the central government’s promotion of tea and tea oil in Fujian Province with sustainable farming practices.

Figure IV.1: Location of Project Counties and Subproject Activities

79. Subproject Crops and Land use. The range of activities to be undertaken in each subproject is extensive. Land use details for the agriculture developments of all the subprojects are shown in Table IV.1. Almost three quarters of the total activities (in terms of area) will be on the improvement of tea and tea-oil plantations on slopes. A total of almost 191,730 mu are proposed for tea or tea-oil plantations, comprising the new establishment of plantations on abandoned agricultural terraces 17 and rehabilitation of existing terraced plantations. Most (55.51%) of this is tea-oil. On the valley floors, rice paddy and grain crop cultivation account for 51,264 mu (79.22%) of the valley floor cropping.

Figure IV.2 (above): Typical terraced tea plantation with green manure intercropping and farm tracks. Rice paddy is on the valley floor at bottom right

Figure IV.3 (above, right): Valley floor vegetable and grain cultivation, constrained by terrain.

Figure IV.4 (right): Example of bamboo-joint ditches, which intercept downslope runoff, protect terraces and store water.

Sources: PPTA team, August, 2015.

80. Of the 19 subprojects, 11 are purely for tea or tea-oil production. These involve plantation establishment or rehabilitation on terraces on sloping land. One subproject comprises tea, tea oil camellia and pomelo plantations, both on terraces. The remaining seven subprojects comprise tea or tea-oil plantation development on terraces combined with rice, grain, seedling nursery or vegetable cultivation on flatlands.

17 Abandoned primarily due to: (i) migration of farm laborers to the city for higher paid work, causing farmers to reduce their cultivation areas; (ii) out-of-date infrastructure not suitable for modern agricultural practices (e.g. lack of access for modern machinery, lack of irrigation); and (iii) lack of finance. PIUs are leasing this currently unused, but still viable, agricultural land.

Table IV.1: Subproject Crops and Land Area Land application Sloping land Valley floor Name of PIU Tea Tea oil Pomelo Pearl Seedling Total Sub-total Rice Vegetable Grassland Lotus Subtotal Garden camellia garden barley nursery Wuyishan Zhuzi Ecological Agriculture Co., Ltd 2,000 2,000 10,000 3,000 13,000 15,000

Fujian Zhengyuan Ecological Food Town Co., Ltd 6,657 6,657 361 361 7,018

Fujian Datian County Golden Phoenix Agricultural 30,000 20,000 50,000 18,000 18,000 68,000 Development Co., Ltd Youxi County Yangzhong Xingkaicheng Urban 10,198 10,198 - 10,198 Construction Co., Ltd Youxi County Shenlang Edible Oil Co., Ltd 8,018 8,018 14.5 15 8,032.5

Ninghua State-owned Ecological Forestry Co., Ltd 26,500 26,500 - 26,500

Fujian Ninghua County Ninghua Science and Technology 2,394 2,394 - 2,394 Co., Ltd Fujian Chunhui Tea Co., Ltd 3,454 3,454 - 3,454

Fujian Cuiyun Tea Co., Ltd 2,499 2,499 - 2,499

Ninghua Jinxi Tea Co., Ltd 3,700 3,700 - 3,700

Fujian Ninghua County Houde Agro-forestry Ecological 9,600 9,600 - 9,600 Co., Ltd Longyan Municipality Longyu Ecological Industry 3,592 5,565 9,157 8,395 598 4,140 10 13,143 22,300 Development Co. Ltd Longyan Municipality Greenland Ecological Agriculture 1,200 1,820 3,020 14,008 2,064 2,690 18,762 21,782 Development Co. Ltd Fujian Xinghe Investment Development Co. Ltd 10,079 6,328 12,691 29,098 - 29,098

Fujian Hongsheng Gardening Co. Ltd 3,210 1,756 4,966 427 427 5,393

Fujian Lvyin Agriculture Co., Ltd 4,460 4,460 - 4,460

Fujian Jianye Agro-forestry Comprehensive Investment 3,200 11,500 14,700 500 500 15,200 Co. Ltd Ningde Qilongxiang Agriculture Co. Ltd 6,000 6,000 - 6,000

Fujian Farms Agribusiness Tea Co. Ltd. 8,000 8,000 500 500 8,500

19 83,591 108,139 12,691 204,421 51,264 2,662 4,140 2,690 3,000 951.5 64,707.5 269,128.5

81. The crop life cycles for the subproject counties have been advised by the PIUs and are set out below for the main perennial plants in the project.

 Tea-oil camellia: Embryo opening-time of young seedling (0-5th years, these two stages usually take 5 years). Growth and initial fruiting period (6-10 years) - Full fruit stage (10 –120 years, depending upon species);  Tea: seedling (8-9 months); juvenile (4-5 years); full production (till 25-30 years);  Pomelo: seedling (3 years); growth and fruiting (4-7 years); full production (8+ years)

Seeding planting Growth Harvest Drying Figure IV.5: Tea Crop Stages

82. Figure IV.5 shows the on-farm activities of tea production covered by the project. On-farm production of tea-oil, pomelo and grain crops covers cultivation, sowing, crop management during growing, harvesting and pre-processing (drying for tea and tea-oil; sorting for pomelos; and threshing and winnowing for grain crops). After this, the produce leaves the farm for processing in processing plants. These are not covered by the project. Processing plants are considered for due diligence as existing associated facilities.

83. Irrigation and drainage. All subprojects include irrigation and drainage infrastructure. The range of components within this category comprise: water sources (weir rehabilitation, pond and water tank construction); pipelines; irrigation canals; pumping stations and sluices; drip irrigation installation; and, interception and drainage ditches.

84. For valley floor components, the irrigation water is mainly diverted from streams, while for the sloping land components, it is mainly collected rain water from site surface runoff. The runoff will be stored in water collecting tanks at different elevations in the tea, tea-oil or pomelo plantations. This can meet the demand for normal crop-growing as well as providing a buffer supply for uneven seasonal rainfall year-to-year (drought). The interception of surface runoff is also an effective anti erosion measure.

85. Various types of irrigation techniques differ in how the water obtained from the source is distributed within the field. In general, the goal is to supply the entire field uniformly with water, so that each plant has the amount of water it needs, neither too much nor too little. The project will mostly adopt furrow and surface irrigation for the valley floor, and for crops and plantations on sloping land, sprinkler and drip irrigation will be adopted.

86. A detailed breakdown of the specififications of the irrigation components for each subproject is at Attachment 2.

87. In-stream Weirs. The Datian Golden Phoenix subproject will refurbish the extraction points (pumps and pipes) at three existing and operating in-stream weirs to provide a collection point to draw off water for the irrigation of 18,000 mu of valley floor cultivation. The Guangze Zhengyuan and Zherong subprojects will refurbish the extraction point (pump and pipes) at one existing and operating in-stream weir to provide irrigation for 361 mu and 500 mu green rice cultivation on valley floor paddy respectively. The weirs will span the entire stream with a height of 1-2 meters. The water will continuously pass over the top, through

21 regularly spaced “gates” during low flow, and over-topping during high flows. Typical weir plan and cross section are at Figure IV.6.

Figure source: domestic FSRs, August, 2015. Figure IV.6: Plan Drawing and Cross Section of Weir

88. Other farm infrastructure. A total of 692 km of farm tracks for farm machinery and plantation maintenance will be constructed. They will be less than 4 m wide generally. On slopes, they will be contructed as all-weather concrete tracks, with kerb drainage to ensure wheeled vehicles do not cause soil rutting and destabilization of slopes. Almost a million trees and shrubs will be planted as shelterbelts. These will be native species and their location and density will be designed to protect tea gardens from winds and to provide shade against excessive sunlight. An itemized list of the components is in Table IV.2.

Table IV.2: Farm Infrastructure Farm track Farmland forest network (km) engineering (trees) County Project Implementing Unit Terrace Track <4m >4m protection Shelter shelter forest forest Wuyishan Zhuzi Ecological Agriculture Wuyishan 6.914 14.978 62,500 Development Co., Ltd Fujian Zhengyuan Ecological Food Town Co., Guangze 9.001 60,000 Ltd Fujian Datian County Golden Phoenix Datian 204.00 150,000 Agricultural Development Co., Ltd Youxi County Yangzhong Xinkaicheng Urban 30.59 48,000 Youxi Construction Co., Ltd Youxi County Shenlang Edible Oil Co., Ltd 24.00 37,400

Ninghua State-owned Ecological Forestry Co., 79.50 Ltd Fujian Ninghua County Ninghua Science and 7.18 Technology Co., Ltd Ninghua Fujian Chunhui Tea Co., Ltd 10.36 20,724

Fujian Cuiyun Tea Co., Ltd 7.50 12,495

Fujian Jinxi Tea Co., Ltd 6.00

Fujian Houde Agro-forestry Ecological Co., Ltd 10.80

Longyu Ecological Industry Development Co. Yongding 66.90 27,825 Ltd Longyan Greenland Ecological Agriculture Xinluo 50.10 44,500 Development Co. Ltd Fujian Xinghe Investment Development Co. Pinghe 74.46 100,790 49,640 Ltd Hua'an Fujian Hongsheng Gardening Co. Ltd 16.70 1.86 188,708

Farm track Farmland forest network (km) engineering (trees) County Project Implementing Unit Terrace Track <4m >4m protection Shelter shelter forest forest Fu'an Fujian Farms Agribusiness Tea Co., Ltd 17.06

Jiaocheng Fujian Lvyin Agriculture Co., Ltd 13.38 15,000 2,500

Fujian Jianye Agro-forestry Comprehensive Zherong 45.18 Investment Co. Ltd Dongqiao Ningde Qilongxiang Agriculture Co. Ltd 12.00 6,000 6,000

Total 691.629 16.838 690,718 141,364

89. Embankments. A total of 26.99 km of riverside embankment will be implemented by four subprojects (Wuyishan, Datian, Yongding, Xinluo). The embankments are to support the valley floor farmland irrigation and provide flood protection. They will have a design standard of 1 in 10 year flood recurrence interval in compliance with regulation for domestic high standard basic farmland construction issued by Ministry of Land and Resources, 2011.

90. Farming Technology and Practices. Output 2 will support PIUs and cooperatives through the provision and demonstration of sustainable agricultural practices, introduction of technology, integrated pest management, and soil and water quality testing equipment (Table IV.3). The project will support subprojects obtaining certification for green and organic production.18

Table IV.3: Technology and Sustainable Agricultural Practice in Subproject Design Product certification Pest control Agricultural Solar Other products Green Inter-planting Sticky County or Project Soil testing Organic energy pest quality testing agricutural (mu) insect district Implementing Unit equipment produce insect control equipment produce trap traps device Zhuzi Ecological Wuyishan 8 1 4 5 Agriculture Co., Ltd Zhengyuan Ecological Guangze 2 51 2008 (mu) 2 4361 166 133140 Food Town Co., Ltd Golden Phoenix Datian Agricultural 72 4 1000 (mu) 2 50000 600000 5000 Development Co., Ltd Yangzhong Xingkaicheng Urban 33 4800 (mu) 10198 8 203960 73 Youxi Construction Co., Ltd Shenlang Edible Oil 33 1 8018 8 160360 56 Co., Ltd State-owned Ecological Forestry 26500 Co., Ltd Ninghua Science and 2394 Ninghua Technology Co., Ltd Chunhui Tea Co., Ltd 1 69 20724 Cuiyun Tea Co., Ltd 2 2499 14994 Jinxi Tea Co., Ltd

18 Green food is certified, pollution-free, safe, high-quality, nutritious food that is produced according to a specific production mode, and certified by specialized agencies, with applicable green food trademark. Organic food is certified agricultural products and processed products, produced and/or processed according to organic agricultural production requirement and related standards, and certified through legitimate, independent organic food certification organization.

Houde Agro-forestry 1000 (mu) 3600 5 Ecological Co., Ltd Longyu Ecological Yongding 2 9157 36 71840 Industry Development Greenland Ecological Xinluo Agriculture 3 3 7420 Development Co. Ltd Xinghe Investment Pinghe 1 9 1200 (mu) 1 21191 583 872940 Development Co. Ltd Zhangpu Hongsheng 4966 54 (Hua'an) Gardening Co. Ltd Farms Agribusiness Fu'an 31 4200 (mu) 4 8000 120 Tea Co., Ltd Lvyin Agriculture Co., Jiaocheng 500 (mu) 1 2200 190 89200 Ltd Jianye Agro-forestry Zherong Comprehensive 5 760 294000 Investment Co. Ltd Dongqiao Ningde Qilongxiang 2 4000 200 120000 (Shouning) Agriculture Co. Ltd

C. Capacity Building

91. FPG seeks to avail itself of the experience and knowledge that can be accessed through the proposed project, to achieve the target of sustainable use of its farmland. The project has been designed with a capacity building component. This has been designed by the Design Institutes in response to their appreciation of fundamental agricultural extension problems and advice from the CPMOs on particular weaknesses in practice applying to each county. The traditional “top-down” approach to agricultural extension will be balanced by PIUs, farmers’ cooperatives, and Farmland Infrastructure Management and Maintenance Associations, which will undertake their own research and determine the extension needs appropriate to their circumstances.

92. Under Project Output 3, each subproject has a capacity building component. This commonly comprises training (for participating farmers and PIU managers), support to farmer cooperatives, establishment of farmland infrastructure management and maintenance associations (Table IV.4), a range of product certifications, purchase of quality testing equipment, and establishment of agricultural information exchange platforms (internet facilities). Subprojects will include: research on irrigation efficiencies and water saving technologies, with the scope and nature of such work to be identified according to their industry types and cultivation models; the setting up of on-farm meteorological stations; study tours; and establishment of pest control and prevention units.

Table IV.4: Farmers Organizations to be Established under the Project Farmer FIMMA* County Project Implementing Unit cooperatives formed formed Wuyishan Wuyishan Zhuzi Ecological Agriculture Development Co., Ltd 4 1 Guangze Fujian Zhengyuan Ecological Food Town Co., 2 Fujian Datian County Golden Phoenix Agricultural Development Datian 30 Co., Youxi County Yangzhong Xinkaicheng Urban Construction Co., 4 Youxi Ltd Youxi County Shenlang Edible Oil Co., Ltd 4 Ninghua State-owned Ecological Forestry Co., Ninghua Fujian Ninghua County Ninghua Science and Technology Co.

Fujian Chunhui Tea Co., Ltd 1 Fujian Cuiyun Tea Co., Ltd 1 Fujian Jinxi Tea Co., Ltd

Fujian Houde Agro-forestry Ecological Co., 5 Yongding Longyu Ecological Industry Development Co. 11 1 Xinluo Longyan Greenland Ecological Agriculture Development Co. 4 1 Pinghe Fujian Xinghe Investment Development Co. 4 Hua'an Fujian Hongsheng Gardening Co. Ltd 3 Fujian Farms Agribusiness Tea Co., Ltd 3 Fu'an Fujian New Tan Yang Tea Industry Co.,

Ningde Baimashan Tea Co. Ltd Jiaocheng Fujian Lvyin Agriculture Co., Ltd

Zherong Fujian Jianye Agro-forestry Comprehensive Investment Co.

Dongqiao Ningde Qilongxiang Agriculture Co. Ltd

Total 73 3

*Farmland infrastructure management and maintenance association

93. About 62,990 person-day trainings related to agricultural production knowledge will be provided to farmers, along with 7,800 person-day trainings to PIU managers and local agricultural technicians (Table IV.5). Training will be convened by the PIUs, using existing cooperative arrangements with local universities and research institutions and funded via counterpart funding. The loan implementation consultants will work with PIUs to organize and implement the training.

Table IV.5: Training under the Capacity Building Output County Farmer training Management training Project Implementing Unit or district (person-days) (person-days) WuyishanZhuzi Ecological Agriculture Development Co., Wuyishan 10,000 Ltd Guangze Fujian Zhengyuan Ecological Food Town Co., Ltd 2,675 260 Fujian Datian County Golden Phoenix Agricultural Datian 7,200 Development Co., Ltd Youxi County YangzhongXinkaicheng Urban 10,000 960 Youxi Construction Co., Ltd Youxi County Shenlang Edible Oil Co., Ltd 4,000 96 Ninghua State-owned Ecological Forestry Co., Ltd 3,000 100 Fujian Ninghua County Ninghua Science and Technology 500 100 Co., Ltd Ninghua Fujian Chunhui Tea Co., Ltd 200 60 Fujian Cuiyun Tea Co., Ltd 200 100 Fujian Jinxi Tea Co., Ltd 200 100 Fujian Houde Agro-forestry Ecological Co., Ltd 500 60 Yongding Longyu Ecological Industry Development Co. Ltd 4,700

Longyan Greenland Ecological Agriculture Development Xinluo 4,915 315 Co. Ltd Pinghe Fujian Xinghe Investment Development Co. Ltd 5,500 550 Hua'an Fujian Hongsheng Gardening Co. Ltd 1,000

Fu'an Fujian Farms Agribusiness Tea Co., Ltd 4,500 5,000 Jiaocheng Fujian Lvyin Agriculture Co., Ltd 400 50 Fujian Jianye Agro-forestry Comprehensive Investment Zherong 2,500 Co. Ltd Dongqiao NingdeQilongxiang Agriculture Co. Ltd 1,000 50 13 19 62,990 7,801 *Farmland infrastructure management and maintenance association

D. Due Diligence of Existing Facilities and Approvals

94. In 10 subprojects, products made from project-supported activities will be processed in existing facilities elsewhere, which are owned and operated by the same PIUs. Due diligence on the environmental approval and compliance status of these facilities has been undertaken by the PPTA team. This included obtaining written confirmation from the local

EPBs of environmental approvals of any existing facilities as well as advice on the environmental compliance history of the facilities (Table IV.6). All PIUs have submitted EPB certifications of no fines imposed on any of their operations since their establishment - except for the Wuyishan subproject which is newly established for this project.

Table IV.6: Due Diligence for Existing Processing Facilities EIA approval for Approval Approval County PIU Remarks existing facilities date agency Wuyishan Zhuzi Ecological New established Wuyishan Agriculture Development NA NA state-owned enterprise Co., Ltd Fujian Zhengyuan Ecological New established Guangze NA NA Food Town Co., Ltd state-owned company Existing standard tea Fujian Datian County Golden Datian County garden with terrce Datian Phoenix Agricultural Yes 4-Aug-14 EPB building, irrigation, and Development Co., Ltd drainage ditches Youxi County Yangzhong No existing facilities Xinkaicheng Urban NA NA related to this project Construction Co., Ltd Youxi Sanming Youxi County Shenlang Camellia seed processing Yes 30-May-11 Municipal Edible Oil Co., Ltd plant EPB Ninghua State-owned No existing facilities NA NA Ecological Forestry Co., related to this project Fujian Ninghua County Ninghua Camellia seed processing Ninghua Science and Yes 12-May-12 County EPB plant Technology Co., Ltd Ninghua Orgainic tea processing Fujian Chunhui Tea Co. Yes 5-Jul-13 As above plant Fujian Cuiyun Tea Co., Ltd Yes 13-Jun-13 As above Tea processing plant Fujian Jinxi Tea Co., Ltd NA NA Fujian Houde Agro-forestry No products processing NA NA Ecological Co., Ltd facilities Longyu Ecological Industry New established Yongding NA NA Development Co. Ltd state-owned company Longyan Greenland No processing, no Xinluo Ecological Agriculture NA NA requirement from EPB Development Co. Ltd Fujian Xinghe Investment No existing facilities Pinghe NA NA Development Co. Ltd related to this project Fujian Hongsheng Zhangpu Hua'an Yes 26-Apr-10 Gardening Co. Ltd County EPB Fujian Farms Agribusiness No requirement when Fu'an NA NA Tea Co., Ltd SOE established (1996) EPB confirmed that PIU Fujian Lvyin Agriculture Co., Jiaocheng NA NA NA has not received any Ltd environmental fines Fujian Jianye Agro-forestry Yew and tea-oil camellia Zherong Comprehensive Investment Yes 22-Sep-11 Zherong EPB plantation project Co. Ltd Ningde Ningde Qilongxiang Tea products processing Dongqiao Yes 15-Mar-10 Dongqiao Agriculture Co. Ltd plant District EPB Source: Data collected from County EPBs. NA = not applicable (no associated facility). EPB = Environmental Protection Bureau.

V. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA)

A. Environmental Setting – Fujian Province

95. Fujian is located in southeast PRC. It is known for its mountains and coastal cities. The province is mostly mountainous. The northwest is higher in altitude. The Wuyi Mountains form the border between Fujian and Jiangxi. It is the most forested provincial level administrative region in the PRC, with a 62.96% forest coverage rate in 2009. The highest point is Huanggang Peak in the Wuyi Mountains (2,157 m). The Min River and its tributaries cut through much of northern and central Fujian. Other rivers include the Jin and Jiulong.

96. Fujian has a subtropical climate, with mild winters. In January the coastal regions average around 7–10°C while the hills average 6–8°C. In the summer, temperatures are high, and the province is threatened by typhoons coming in from the Pacific. Average annual precipitation is 1,400–2,000 mm.

97. Forests cover 52.4% of Fujian's total land area, the highest ratio for a province in the PRC. There are at least 1,943 species of woody plants, including 400 tree species used for timber production and 140 varieties of bamboo. Fujian has 400 million cubic meters of timber reserved, its timber production ranking third in the PRC. The fauna record of Fujian province is incomplete. Current records list 100 species of mammals, 540 species of birds, 115 species of reptiles and 44 species of amphibians. There are also more than 5,000 kinds of insects. Fujian has 16 National Parks, 14 National Geoparks, 30 National Forest Parks, five National Wetland Parks, and one National Fossil Site.

98. Fujian is rich in water resources, and its annual rainfalls totals 201.1 billion cubic meters. More than 500 rivers in the province have their drainage area of over 50 square kilometers each. The total volume of river runoff stands at 115 billion cubic meters a year on average.

99. In 2013, the population was 37.74 million, the 17th most populous province in PRC, of which 39.2% and 61.8% are rural and urban respectively. Male and female ratios are 51.3% and 48.7%. Total land area is 120,146 km2 with an average population density of 304/km2. The ethnic composition is Han (98%), She (1%), and Hui (0.3%). In 2013, the GDP was CNY 2,175.96 billion, averaging CNY 57,856 per capita, about 138% of the national average. GDP composition ratios for the primary, secondary, and tertiary sectors were 8.9%, 52%, and 39.1%, respectively. About 1.38 million hectares (ha) was farmland. On average, each rural person had about 0.058 ha (0.88 mu) of farmland, only about 65% of the national average. Per capita income in rural areas was CNY 11,184 in 2013, 26% higher than the national average (CNY 8,896).

100. Farmland is relatively sparse. Rice is the main crop, supplemented by sweet potatoes and wheat and barley. Fujian is the PRC’s leading province for production of longan and is also a major producer of lychees and tea.

B. Environmental Setting – Project Counties

101. Climate. The climatic characteristics favouring quality tea growing are as follows: frequest low cloud and fog conditions with limited direct exposure to sunshine, abundant rainfall (>1,500mm) and high relative humidity in the air, temperatures that rise and fall slowly, and low wind speeds in the lee-sides and valleys of mountains. A summary of climatic characteristics of the project counties is at Table V.1. Datian, Youxi, Yongding and Hua’an are relatively hot and dry, but all are within the range for successful tea plantation agriculture.

Table V.1: Climate Summary of Project Counties Annual max. Annual min. Annual Annual average Annual average County o temperature temperature frost-free temperature ( C) o o precipitation (mm) ( C) ( C) period (days) Wuyishan 17-18 39.5 -8.1 1,864 272 Guangze 17.6 39.7 -9.5 1,864 271 Datian 18.8 40.2 -7 1,553 295 Youxi 18.9 40.5 -8.9 1,595 299 Ninghua 15-18 38.5 -39.2 -8.3 1,750 214-248 Yongding 20.1 39.2 -5.1 1,607 305 Xinluo 16-20 38.1 -5.6 1,692 291 Pinghe 17.5-21.3 39.7 -2.9 1,741 323.7 Hua'an 20.2 39.5 -3.8 1,555 310 Fu'an 19.8 43.2 -9.5 1,525 240-330 Jiaocheng 19 38.5 -2.4 2,014 317 Zherong 13-18 38.4 -9.8 1,886 238 Dongqiao 17.5 35.8 -9.8 2,350 270.4 Source: Domestic EIA tables and FSRs, 2015.

102. Topography. The activities of individual PIUs are spread geographically over a number of township areas. This is due to the topographical constraints set by the mountainous terrain of Fujian, where tea is grown on small plots on protected lower slopes and a number of isolated plots make up a single enterprise. Elevation within the project counties ranges from 200 m to almost 2,000 m above sea level. Similarly, valley floor crops are confined to small and discontinuous river valleys.

103. Hydrology. The hydrological pattern of the counties is also determined by the topography. In subproject areas the hydrology comprises small streams, which flow among the many hills in a dendritic pattern. Although cumulatively these stream carry high volumes of water, the individual flow rates are small, and large rivers only form in the central east of the province where the mountains give way to small coastal plains. Waterbodies of the project counties are listed in Table V.2 and their locations are shown in Figure V.1.

Table V.2: River Systems of the Project Area County Streams within Project Area Sub-tributaries Tributaries Main River Wuyishan Wufuxi, Gutingxi, Wengduxi Chongyang Stream Jianxi River Minjiang River Guangze Lifangxi, Zhimaxi Xi Stream Futunxi River Ninghua Dongixi , Xixi Cuijiang River Shaxi River Datian Xianfengxi, Hongqixi, Wenjiangxi Jun Stream Youxi River Youxi Xinglingxi, Gaozhouxi, Houtingxi, Qingyixi, Banmianxi Jianxi, Huluxi, Qingyinx Jiaocheng, Huotongxi, Qiduxi, Dajinxi, Chixi Jiaoxi River Zherong Xingrongxi, Dongxi, Xixi,Taokengxi Qianyangxi Jiaoxi River River Fu’an Xixi Jiaoxi River Dongqiao Xietanxi, Huotongxi Jiaoxi River Hua’an Wenfengxi, Gaojixi, Nanshengxi, Huashanxi River Xixi River Jiulongjiang Xiaweixi River Pinghe Huashanxi, Jiufengxi Xixi River Jiulongjiang River Xinluo, Wenfengxi, Gaojixi, Nanshengxi, Shizhongxi, Beixi River Jiulongjiang Xiaweixi Xiangshanxi River Yongding Gaotouxi, Jiaotangxi, Hongkengxi Jinfengxi River Yongding River Tingjiang River

Figure V.1: River Systems of the Project Area

104. Flora and Fauna. Due to its mountainous environment and relatively low level of development Fujian Province is both rich and diverse in its flora and fauna. The Wuyi Mountain Nature Reserve in Wuyishan is a notable specimen base for new species of vertebrates and insects. Datian County has the Daxianfeng Natural Protection Zone located in Xushan Village of Pingshan Township.

105. The natural vegetation in the vegetated parts of the project counties comprises evergreen forest, coniferous forest, mixed broadleaf forest, bamboo forest, regrowth shrublands and grasslands. The natural forests are in the highest, least accessible areas which have not been converted to agriculture. These communities have all been cleared in the past and the current flora is secondary vegetation. Coniferous forest is mainly fir and pine. The Chinese fir (Cunninghamia lanceolata) forest is patchy natural regrowth, and the pine forest (Pinus massoniana) is mainly plantation. The broad-leaved forest is bitter Yung, silk chestnut oak, Cyclobalanopsis and green oak, and the main tree species of mixed broad-leaved forest includes Leucobala, beech mast, and chestnut. The bamboo forest is mainly Phyllostachys pubescens; and shrubland/grassland comprises Adinandra millettii, Pleioblastus amarus, black rice, sesame, fern, kudzu vine, paspalum, wild peanuts, and cogongrass. Regrowth, shrubland and grasslands are common on the margins of slopeland

29 agricultural areas including tea plantations. These areas are vulnerable to expansion of cropping and exploitation of their timber and non-timber resources.

106. The current land cover of the subproject sites is either low-yielding, old tea garden and oil-tea camellia garden, or abandoned agricultural terraces. In all cases, lands bordering the subproject sites are dominated by shrubs and low trees (both natural and exotic), and grass. Figure V.2 shows an abandoned terraced area on a hillside bordered by shrubs and grassland on the side and secondary conifer regrowth on the upper slope and summit.

Figure V.2: Secondary Regrowth Vegetation Surrounding Abandoned Terrace.

107. No project counties have coastal areas and no project areas encroach upon wetlands or other coastal features.

108. Fauna. The 52.4% of Fujian’s land area which supports natural forest provides extensive habitat for the 100 species of mammals, 540 species of birds, 115 species of reptiles and 44 species of amphibians recorded. The subproject lands have been selected to exclude all naturally vegetated areas. Field investigation and consultation with locals by the EIA Institutes have found no rare or protected native animal in the subproject areas. The reported animals at the subprojects are mainly animals with habitats adapted to farmland or residential areas.

109. An Inventory of freshwater fish species from the larger river systems in Fujian has been provided by the Freshwater Fisheries Research Institute of Fujian Province. None of the species listed are protected species on the PRC National Fish Protection List (Table V.3).

Table V.3: List of Fish Species from the Larger Rivers Family Species Family Species Anguillidae Anguilla japonica Cyprinidae V.(Scaphesthes) Lepturus Anguilla anguilla Rhodeus ocellatus

Cyprinidae Ctenopharyngodon idellus Acanthorhodeus chankoensis Mylopharyngodon piceus Acheilognathus gracilis

Gobiobotia longibarba Hemiculter leucisculus meridicmlis Hemiculter bleekeri Cobitidae Leptobotia elongata

Squaliobarbus curriculus Misgurnus anguillicaudatus

Pseudohemiculterdispar Leptobotia pellegrini Feng Opsariichthys bidens Homalopteridae Lepturichthys fimbriata

Zacco platypus Pseudcgastromyzon fangi

Zacco macrolepis Piaeformosania intermedia

Erythroculter ilishaeformis Crossostoma stigmata

Megalobrama terminalis Siluridae Silurus asotus Linnaeus

Megalobrama amblycephala Silurus soldatovi meridionalis

Sinibrama macrops Clariidae Clarias fuscus

Family Species Family Species Pseudolaubuca sinensis Clariasleather

Hemiculter leucisculus Bagridae Pseudobagrus fulvidraco

Pseudohemiculter dispar Pseudobagrus vachelli

Xenocypris davidi Bleeker Pseudobagrus nitidus

Plaiognathops microlepis Leiocassis crassilabris

Distoechodon tumirostri Leiocassis albomarginatus

Distoechodon compressus Leiocassis tenius Hypophthalmichthys molitrix Leiocassis taeriatus

Aristichthys nobilis Leiocassis macrops Nichols

Cyprinus carpio Linnaeus Sisoridae Glyptothorax fukiensis

Carassius auratus Ictaluridae Ictaluruspunctaus Rafinesque

Carassius auratus cuvien Ictalurus nebulosus

Hemibabus labeo Serranidae Siniperca kneri Garman

Pseudogolio vaillanti vaillanti Siniperca chuatsi

Saurogobio dabryi Bleeker Siniperca scherzeri

Gnathopogon argentatus Siniperca roulei

Pseudoperilampus lighti Wu Siniperca obscura

Rhinogobio typus Bleeker Belontiidae Macropodus opercularis

Saurogobio dumerili Bleeker Gobiidae Ctenogobius giurinus

Erythroculter ilishaeformis Cichlidae Tilapia sp Pseudorasbora parva Oreochromis niloticus

Spinibarbus caldwelli Nichols Oreochromis mossambicus

Acrossocheilus hemispinus Channidae Channa argus Cantor

A. lissochilichthys parallens Channa asiatica Linnaeus

Acrossocheilus heimispinus cinctus Ophiocephalus maculatus

Acrossocheilus wenchowensis Characin Colossoma brachypomum

Varicorhinus barbatulus Synbranchidae Monopterus albus

Sources: 1) Study on fish community structure in Sha Stream in Fujian Province; Journal of Fujian Fisheries No.1 March, 2010; The Freshwater Fisheries Research Institute of Fujian Province; Fuzhou, Fujian Province. 2) Study on fish community structure in Futun Stream and Jian Stream; Fujian Fisheries, No.3, 1990; Nanping Fisheries Technology Extension Station, Nanping City, Fujian Province. 3) Wildlife Status of Youxi County, Fujian Province; http://www.rxyj.org/html/2010/0520/1185465.php 4) The Species Resources in Youxi County and the Protection of Biological diversity; Journal of Fujian Forestry Sci & Tech, 23(3), 1996; Fujian Province.

110. Erosion and Soil Loss. Fujian Province is part of the red soil region of southern PRC. There are several factors which contribute to the erosion potential of this soil:19 (i) high annual precipitation, and 70% of the rain occurs as heavy rainstorms in April-September, which results in landslides and mud-rock flows; (ii) the substrate (Quaternary red clays and red sandstone) is soft, fragile and easily weathered and the soil derived from them is similarly erodible; and (iii) the soils occur on mountainous and hilly lands with steep slopes.

111. There are 23 key soil erosion counties in Fujian, where land rehabilitation is being pursued by governments. Erosion protection is required for all agricultural developments on sloping land. Seven (Datian, Ninghua, Yongding, Pinghe, Hua’an, Shouning, Fu’an) of the 13 counties in the project are key erosion control counties with more than 5% of their erosion lands classed as moderate, severe or extreme. In Datian, Junxi and Qianping Townships, over 10% of erosion lands in these categories and in Ninghua county Haitu Township and Shibi Town have more than 35%. Table V.4 shows the current soil erosion status in the project counties provided by the Fujian Provincial Soil Erosion Monotoring Station.

19 Liang et al. 2010. Soil erosion changes over the past five decades in the red soil region of Southern China. Journal of Mountain Science 7: 92-99.

112. Agricultural Chemical Use. In 2013, total fertilizer and pesticide application in Fujian Province was 4.13 million tons and 57,800 tons respectively,20 with low fertilizer application efficiency (only 30% approximately), and average application of 25.9 kg/mu (4 kg/mu higher than the national average). Along with increased production, overuse of fertilizer and pesticides caused non-point source pollution, soil acidification, reduced soil organic matter, and reduced ability of soils to retain fertility levels. Past approaches to fertilizer application take no account of soil fertility or crop needs and result in fertilizer overuse.

113. Common diseases and pests which are the main threats to crop health and yields are as follows:

Tea: pest and disease—Empoasca vitis, Aleurocanthus spiniferus (insects and aphids), mites; Tea blister blight and Anthracnose. Normal applied pesticide: abamectin, Oxymatrine.

Tea-oil camellia: pest and disease—Agaricodochium camelliae, Exobasidium gracile, Glomerella cingulate; Euproctis pseudoconspersa Strand, Biston marginata, Curculio Chinensis (insects and aphids). Normal applied pesticide: abamectin, Oxymatrine, 10% ethofenprox, Triazophos emulsifiable concentrates, Bordeaux mixture, Dichlorvos.

Rice: pest and disease—Nilaparvata lugens, Cnaphalocrocis medinalis, Thanatephorus cucumeris (insects and aphids). Normal applied pesticide: Chlopyrifos, Triazophos emulsifiable concentrates, Carbendazim.

Pomelo: pest and disease—Red spider, Bud tip, Aphidoidea, Anthracnose. Normal applied pesticide: Abamectin, Dichlorvos, Thiophanate-methyl, carbendazim.

114. Physical Cultural Resources. The project counties are rich in physical cultural resources. The Yongding Longyu subproject area is adjacent to the Yongding Tulou (circular earthen structure) protection area which was included in the UNESCO World Heritage List in 2008. The earthen structure is a type of Chinese rural dwelling of the Hakka people in mountainous areas. They were mostly built between the 12th and 20th centuries. This is a heritage site where the structure and fabric of ancient building forms are interwoven with the current community identity and lifestyle of an ethnic minority.

20 Fertilizer use was 1.67 million tons of nitrogenous fertilizer, 0.93 million tons of phosphate fertilizer, 0.55 million tons of potash fertilizer, and 0.98 million tons of compound fertilizer, respectively.

Table V.4: Soil Erosion Status in the Project Counties and Towns/Townships Project county (District, Total land Soil erosion Minor Moderate Severe Extreme Town/Township % % % % % county -level city) area (ha) area (ha) (ha) (ha) (ha) (ha) Wuyishan Wufu Town 17,733.00 576.79 3.25% 258.35 1.46% 245.28 1.38% 53.26 0.30% 19.90 0.11% Zhima Town 16,102.29 2,006.91 12.46% 1,338.53 8.31% 553.58 3.44% 113.29 0.70% 1.52 0.01% Zhaili Town 72,337.80 1,343.22 1.86% 831.93 1.15% 419.59 0.58% 89.59 0.12% 2.11 0.00% Siqian Township 41,668.89 379.68 0.91% 224.06 0.54% 114.82 0.28% 40.80 0.10% - 0.00% Guangze County Luanfeng Township 30,087.45 2,206.53 7.33% 1,178.65 3.92% 655.04 2.18% 331.96 1.10% 40.88 0.14% Lifang Township 19,802.53 3,532.42 17.84% 2,542.79 12.84% 871.23 4.40% 114.77 0.58% 3.63 0.02% Huaqiao Township 30,383.29 1,486.37 4.89% 827.30 2.72% 496.16 1.63% 158.76 0.52% 4.15 0.01% Pingshan Township 10,566.82 1,250.50 11.83% 642.05 6.08% 305.23 2.89% 286.78 2.71% 16.44 0.16% Wushan Township 8,358.33 713.83 8.54% 270.51 3.24% 146.10 1.75% 235.96 2.82% 61.26 0.73% Jiyang Towship 6,636.34 694.55 10.47% 416.33 6.27% 154.16 2.32% 114.59 1.73% 3.88 0.06% Junxi Town 14,014.11 2,046.75 14.60% 1,200.68 8.57% 492.81 3.52% 345.98 2.47% 7.28 0.05% Wuling Township 8,033.78 1,405.85 17.50% 584.60 7.28% 564.63 7.03% 255.92 3.19% 0.70 0.01% Huaxing Township 9,292.46 484.79 5.22% 305.25 3.28% 108.96 1.17% 70.57 0.76% 0.01 0.00% Datian Qianping Township 4,638.01 1,236.61 26.66% 469.94 10.13% 447.94 9.66% 312.66 6.74% 6.07 0.13% Xieyang Township 11,601.42 805.35 6.94% 408.37 3.52% 180.50 1.56% 182.57 1.57% 33.91 0.29% Taoyuan Town 21,886.80 1,293.30 5.91% 521.73 2.38% 421.80 1.93% 332.58 1.52% 17.19 0.08% Dongfeng Farm

Shangjing Town 15,294.22 1,206.20 7.89% 543.22 3.55% 400.33 2.62% 250.91 1.64% 11.73 0.08% Shipai Town 12,994.65 1,484.56 11.42% 719.11 5.53% 379.79 2.92% 378.71 2.91% 6.95 0.05% Yangzhong Town 33,952.59 952.30 2.80% 179.33 0.53% 616.97 1.82% 156.01 0.46% - 0.00% Youxi Chengguan Town 11,515.23 674.07 5.85% 174.75 1.52% 384.91 3.34% 40.03 0.35% 74.37 0.65% Zhongxian Township 37,509.91 378.17 1.01% 103.97 0.28% 242.00 0.65% 30.98 0.08% 1.22 0.00% Chengjiao Township 20,470.57 3,516.53 17.18% 1,675.20 8.18% 1,083.93 5.30% 747.24 3.65% 10.16 0.05% Hucun Town 16,850.71 2,259.46 13.41% 1,192.82 7.08% 871.31 5.17% 190.70 1.13% 4.62 0.03% Zhongsha Township 11,624.38 1,700.77 14.63% 1,021.36 8.79% 427.38 3.68% 247.02 2.13% 5.00 0.04% Ninghua Caofang Township 20,067.90 1,642.14 8.18% 832.06 4.15% 525.25 2.62% 282.41 1.41% 2.42 0.01% Shibi Town 13,862.47 4,335.53 31.28% 1,512.93 10.91% 1,508.25 10.88% 1,306.68 9.43% 7.66 0.06% Huaitu Township 10,842.83 6,253.41 57.67% 1,771.35 16.34% 3,074.51 28.36% 1,407.55 12.98% - 0.00% Guzhu Township 6,277.10 526.98 8.40% 239.54 3.82% 208.26 3.32% 78.55 1.25% 0.63 0.01% Yongding District Hukeng Town 9,848.76 2,030.38 20.62% 679.02 6.89% 979.01 9.94% 371.63 3.77% 0.72 0.01% Gaotou Township 2,442.55 818.45 33.51% 376.83 15.43% 365.06 14.95% 76.56 3.13% - 0.00% Xinluo District Jiufeng Town 29,936.97 4,376.18 14.62% 2,186.39 7.30% 1,698.67 5.67% 491.12 1.64% - 0.00% Jiufeng Town 20,355.61 5,212.69 25.61% 2,351.74 11.55% 2,049.13 10.07% 797.34 3.92% 14.49 0.07% Qilong Township 12,791.97 2,462.27 19.25% 1,123.75 8.78% 922.88 7.21% 405.11 3.17% 10.52 0.08% Pinghe County Xiaoxi Town 13,718.41 2,671.40 19.47% 1,417.57 10.33% 821.81 5.99% 412.22 3.00% 19.80 0.14% Banzai Town 13,367.83 2,212.28 16.55% 1,077.31 8.06% 734.98 5.50% 399.00 2.98% 0.99 0.01% Huafeng Town 17,359.16 2,144.69 12.35% 1,051.33 6.06% 704.93 4.06% 379.38 2.19% 9.06 0.05% Hua'an County Makeng Township 11,657.00 779.67 6.69% 373.21 3.20% 331.11 2.84% 75.35 0.65% - 0.00%

Project county (District, Total land Soil erosion Minor Moderate Severe Extreme Town/Township % % % % % county -level city) area (ha) area (ha) (ha) (ha) (ha) (ha) Zhangpu County Changqiao Town 13,590.16 1,972.32 14.51% 1,220.75 8.98% 607.29 4.47% 144.28 1.06% - 0.00% Fuan City Chengyang Town 15,171.02 2,322.25 15.31% 1,488.24 9.81% 659.57 4.35% 158.71 1.05% 15.73 0.10% Jiaocheng District Badu Town 9,866.28 601.23 6.09% 318.54 3.23% 270.01 2.74% 12.69 0.13% - 0.00% Zheping Township 4,779.89 747.47 15.64% 249.84 5.23% 360.75 7.55% 136.88 2.86% - 0.00% Zherong County Huangbai Township 7,249.67 364.11 5.02% 171.47 2.37% 131.84 1.82% 60.80 0.84% - 0.00% Zhayang Township 7,957.25 624.74 7.85% 233.31 2.93% 289.03 3.63% 95.03 1.19% 7.37 0.09% Shihou Township in 5,884.34 382.40 6.50% 223.44 3.80% 138.73 2.36% 20.23 0.34% - 0.00% Jiaocheng Dongqiao Wuqu Town in 6,135.02 1,125.51 18.35% 669.31 10.91% 370.66 6.04% 85.54 1.39% - 0.00% Shouning County Source: Fujian Provincial Soil Erosion Monotoring Station, September, 2015.

115. The Tulou World Heritage Site has a core heritage zone and a buffer zone (Figure V.3). The Yongding subproject boundary does not encroach on any part of the core or buffer zones. The land separating the subproject from the buffer zone is a ridgetop 200 to 500 m wide and which is forested. The subproject will not impact on the landscape or its scenic backdrop.

Figure V.3: Tulou World Heritage Site and Subproject Map Source: Yongding Cultural Relic Bureau

116. Wuyishan has many old and historic trees (including Taxus chinensis var. mairei and Phoebe sp.), located in the villages of Wufu Township, and Shibi Town in Ninghua is a centre of Hakka culture. Ninghua County has the Swan Cavern Scenic Area (triple A tourist site) and is also the starting point of the famous Long March undertaken by the Red Army of the Chinese Communist Party in 1934. None of these values are located within the subprojects.

117. Summary of Environmental Setting. The topographic, hydrological, cultural and biological settings of the subproject counties are summarized in Table V.5.

Table V.5: Topographic, Hydrological, Cultural and Biological Settings of the Subproject Counties Project Project Township Topography Hydrology Cultural relics Flora and Fauna County Implementing Unit The Wuyi Mountain Nature Reserve is a The main river in Wufu Town is Wufu Wufu Town has many old and specimen base for new species of Stream, which belongs to Tan stream famous trees located in the vertebrates and insects. However there are system of Chongyang Stream. The villages, which include Taxus no natural reserves and other key wildlife Wufu Town is located in catchment of the reservoirs from which Chinensis var. mairei and preserve areas near the subproject site. The complex various terrain, with supply for the subproject will be drawn is Phoebe sp. The nearest Wuyishan Zhuzi 2 project does not encroach on any naturally deeply dissected valleys and 42.09 km , with total capacity of 4.456 distance between project site Wuyishan Ecological Wufu Town 3 vegetated areas. a layer, large water-bearing million m , and already irrigate an area and a protected tree is 485 m. Agriculture Co., Ltd Agricultural crops are the main flora in the capacity. It is an intermontane of 15,634 mu with a total water supply The subproject only involves subproject area, which include rice, lotus, basin hydrogeological area. 123.17 million m3 per year. farmland and tea garden tobacco, and mushroom. Animals reported in The subproject areas do not encroach rehabilitation, will not have the subproject vicinity are limited to common upon, or adjoin drinking water source adverse impact to the trees in snakes, frogs and birds. protection areas. villages.

Zhima Town Guangze County is located in The native flora of the area has been Zhaili Town the northwest mountains of The project area is mainly in the Xi destroyed and the existing flora is secondary Fujian, with elevation ranging Creak Water system which is fed by Siqian vegetation of coniferous forest, broad-leaved from 1,930 m to 215 m. The Zhima Creak and Lifang Creak at The subproject sites do not Fujian Zhengyuan Township forest, mixed forest, bamboo thicket, shrub county belongs to Hangzhou Town, encroach upon or adjoin any Guangze Ecological Food Luanfeng grass, gardens, and agricultural vegetation. Township intermontane basin extended The watershed area of Guangze County cultural relics, places, or any Town Co., Ltd 2 The project does not encroach on any from northeast to southwest, is 848.76 km . No drinking water source other protected areas. Lifang naturally vegetated areas, ecological or surrounded by rolling hills. protection areas are on or adjoin the Township environmentally sensitive areas or habitats of The terrain in the northeast is subproject Huaqiao rare or endangered species. Township the highest. Pingshan Datian County is one of the origins of Township Min River, Jiulong River and Jin River The county is located in the “Central Wushan and has 25 rivers with a total catchment Subtropical Laurilignosa vegetation zone in Township area of more than 30 km2. The main the humid forest area of East China” and Jiyang rivers include Jun Stream, Wenjiang belongs to the evergreen Castanopsis/ Towship Stream, Taoyuan Stream, Guangtang Lauracaea subzone Junxi Town Stream and Shangjing Stream. Jun There are 10 species of recorded wild Wuling Datian County is located on Stream is the largest river with an mammals, 59 species of birds, 19 species of Fujian Datian the west side of Daiyun average flow rate of 115 m3/h and is the reptiles, 16 species of amphibians and 11 Township The subproject sites do not County Golden Mountain, which belongs to main source of water for Jiemian species of fish. Huaxing encroach upon or adjoin any Datian Phoenix Agricultural the mountainous subalpine Reservoir Hydropower Station. The Daxianfeng Natural Protection Zone is Township cultural relics, places, or any Development Co., zone with a terrain which average annual runoff of surface water located in Xushan Village of Pingshan Qianping 3 other protected areas. Ltd Township slopes from the east, west in the county is 1.984 billion m while the Township, with a total land area of 6893 ha, and south towards the center. total reserve of ground water is 354 including 1848 ha core protection area. No Xieyang 3 Township million m . subproject lands are within or adjoin the core Taoyuan Heyang Village and Yangchun Village in or buffer areas. Town Wushan Township is within Datian The project does not encroach on any Dongfeng County drinking water source protection naturally vegetated areas, ecological or Farm area, no contruction activities can be environmentally sensitive areas or habitats of Shangjing conducted in these villages except tree rare or endangered species. Town planting 36

Project Project Township Topography Hydrology Cultural relics Flora and Fauna County Implementing Unit Shipai Town Youxi County Youxi County features hilly Yangzhong Yangzhong landscape, with Daiyun Xinkaicheng Urban Town mountain range in the Multiple rives and streams are The subproject area currently supports low Construction Co., southeast, and the Daimao distributed in Youxi County, of which yield tea and tea-oil plantations. It is bordered Yangzhong mountain range in the west there are 81 rivers with larger than 10 The subproject sites do not by regrowth shrubland, weeds and grasses of Town and the northwest. It is km2 catchment area. The main streams encroach upon or adjoin any abandoned agricultural lands. Youxi located within the include You Stream, Xinling Stream, cultural relics, places, or any The project does not encroach on any Youxi County Chengguan Zhenghe—Dapu and Gaozhou Stream and Houting Stream, other protected areas. naturally vegetated areas, ecological or Shenlang Edible Oil Town Gutian—Qinxi fault zones. It which all belong to the Minjiang River environmentally sensitive areas or habitats of Co., Ltd Zhongxian is a hilly basin high in the east system rare or endangered species. Township and the west and low in the centre. Ninghua Huaitu State-owned Township Ecological Forestry Shibi Town Co., Ltd Fujian Ninghua Huaitu Naturally vegetated area of the county is County Ninghua Township The town of Shibi of Ninghua 1,860 km2, about 78% of the total land area. Science and is well known as the cradle of Ninghua County is the origin of the The main vegetation types are: evergreen Technology Co., Ltd Shibi Town the Hakka. Ninghua is also Minjiang River. There are many small broad-leaved forest, coniferous forest, moso marked as the starting place Chengjiao streams in the subproject area that flow bamboo, secondary coniferous and Ninghua County is located in of the famous massive Long Township radially to the neighboring counties. The broad-leaved mixed forest, and shrub forest, south section of Wuyishan March undertaken by the Red Fujian Chunhui Tea Zhongsha branches and gullies of streams form The subproject area currently supports low Ninghua eastern mountain area. Low Army of the Chinese Co., Ltd networks of streams with short lengths. yield tea and tea-oil plantations. It is bordered Township mountains, hills and basins Communist Party in 1934. The total catchment area is 2197 km2. by regrowth shrubland, weeds and grasses of Hucun Town cover 96% of the land area. The nearest project sites are The subproject areas do not encroach abandoned agricultural lands. about 5km (straight line Zhongsha upon, or adjoin drinking water source The project does not encroach on any distance) from the scenic Fujian Cuiyun Tea Township protection areas. naturally vegetated areas, ecological or swan caverns and it will not Co., Ltd Chengjiao environmentally sensitive areas or habitats of be influenced by this project. Township rare or endangered species. Fujian Jinxi Tea Co., Zhongsha Ltd Township Fujian Houde Shibi Town Agro-forestry Caofang Ecological Co., Ltd Township Yongding County has four rivers, namely The Yongding Tulou (circular The natural vegetation of the Guzhu, Hukeng Guzhu The main landforms in the Yongding River, Jinfeng Stream, earthen structure) protection and Gaotou townships is regrowth forest Longyu Ecological Township subproject area are valley Huangtan River, Tingjiang River. The area which was included in comprising coniferous forest, evergreen Industry basins with average Yongding project is located in upstream of Jinfeng the UNESCO World Heritage broadleaf forest, bamboo forest, secondary Development Co. elevations of 200-400 m in Stream in the Tingjiang Water System. List in 2008. The earthen bush and grass. There are many plantations Ltd Hukeng Guzhu and Hukeng 400-600 The subproject areas do not encroach structure is a type of Chinese of fir and pine. Town m in Gaotou upon, or adjoin drinking water source rural dwelling of Existing agriculture includes oil-tea camellia,

Project Project Township Topography Hydrology Cultural relics Flora and Fauna County Implementing Unit protection areas. the Hakka people in tung tree, tea, Chinese chestnut, persimmon, mountainous areas. At its pears, peaches, plums, oranges and banana closest point, the planned tea – all on lower slopes. Gaotou garden establishment is The project does not encroach on any Township 500m from the heritage site. naturally vegetated areas, ecological or environmentally sensitive areas or habitats of rare or endangered species. Shizhong Town belongs to Shizhong Town is the source of the Yangdong - Shizhong - Jiulong River and Ting River. The main The natural vegetation includes fir, pine, Longyan Greenland Renhe Basin, with length waterbodies in the subproject area are The subproject sites do not bamboo, and mixed conifer/broadleaf forest. Ecological from south to north of 11 km, Shizhong Shizhong Stream, Xiangshan Stream, encroach upon or adjoin any The project does not encroach on any Xinluo Agriculture and 0.3 -1.5 km width from Town Xiao Stream and Yingkeng Stream. cultural relics, places, or any naturally vegetated areas, ecological or Development Co. east to west. The total area is 2 The subproject areas do not encroach other protected areas. environmentally sensitive areas or habitats of Ltd 9 km , The average elevation upon, or adjoin drinking water source rare or endangered species. is 650 m, sloping north to protection areas. south.

The flora of the county belonged to the south Jiufeng Town Pinghe County is located in The main river in Pinghe is Huashan subtropical wet forest classification. Due to high terrain in territory lying Stream ('Xiao Stream') with Wenfeng pasthuman activities, the primary forests Fujian Xinghe tilted to the east, west, and stream, Gaoji stream, Nansheng stream, The subproject sites do not have been destroyed, and the areas mainly Investment Qiling south. Shuangjian Mountain Xiawei stream as tributaries. The encroach upon or adjoin any Pinghe 2 used for planting crops, pomelo, and tea. The Development Co. Township and Daqin Mountain divide catchment area is 857.3 km . cultural relics, places, or any only natural flora are secondary forests Ltd the county into two major The subproject areas do not encroach other protected areas. There are no areas of national or provincial departments in the southeast upon, or adjoin drinking water source protection for wildlife and ecology in the Xiaoxi Town and northwest. protection areas. vicinity of the subproject. Banzai Town The landform of Huafeng Hua'an county is located in the south of Huafeng Town is a typical river basin Fujian Province, and the middle reaches Town with a west-east width of 20 of Jiulong River. Jiulong River is the km and north-south length of The naturally vegetated areas of Hua’an second longest river in Fujian province 33 km. The altitude of 2 The subproject sites do not county are south subtropical wet forests. with a drainage area of 14081 km . The Fujian Hongsheng Shimasijian is 1146 m and is encroach upon or adjoin any The project does not encroach on any Hua'an Makeng total length of Jiulong River is 1923 km, Gardening Co. Ltd the highest mountain. The cultural relics, places, or any naturally vegetated areas, ecological or Township and the length of the main reach is 285 lowest point is at the Dagong other protected areas. environmentally sensitive areas or habitats of km. Mountain with an altitude of rare or endangered species. The subproject areas do not encroach 60 m. Changqiao upon, or adjoin drinking water source Lateritic soil is the main soil in Town protection areas. the area. Songluo The DEIA has concentrated its description on Fu'an county incorporates the Fu'an is located on the eastern (left) Towship the subproject site only, describing it as ranges of Jiufeng Mountain, bank of Jiao Stream, the main tributary Shekou Town The subproject sites do not devoid of native animal resources with only Fu'an Farms Tailao Mountain and of the Baima River. encroach upon or adjoin any common farmland rodents and birds such as Fu'an Agro-business Tea Donggong Mountain. The The subproject areas do not encroach cultural relics, places, or any voles, rats, weasels, magpies and tits. Co., Ltd Chengyang mountain ranges strike upon, or adjoin drinking water source other protected areas. The project does not encroach on any Town roughly northeast - protection areas. naturally vegetated areas, ecological or southwest. environmentally sensitive areas or habitats of 38

Project Project Township Topography Hydrology Cultural relics Flora and Fauna County Implementing Unit rare or endangered species. Zhiti Mountain in Jiaocheng County is a provincial level scenic spot, and the Huayan Typical natural vegetation types are: Temple at the top of Mountain evergreen coniferous forests, shrub, Jiaocheng is located in the Qidu Stream, located in Jiaocheng, is a national key temple. evergreen broadleaf forest, mixed forest, foothill of Jiufeng Mountains, Fujian Lvyin originates from Hubei Township, with Huotong Mountain is bamboo forest, grassland. Jiaocheng Badu Town with a sea cost. It lays 2 Agriculture Co., Ltd 333.5 km of total catchment area and recognised as the origin of The project does not encroach on any descending trend from west length of 58 km Taoism. naturally vegetated areas, ecological or to east The subproject sites do not environmentally sensitive areas or habitats of encroach upon or adjoin any rare or endangered species. cultural relics, places, or any other protected areas. Zherong is located in the Zheping The subproject site is low-yielding old tea northeast of Fujian. It has Township garden and oil-tea camellia garden, mountainous terrain, with a Fujian Jianye Main streams are Xinrong Stream, Dong The subproject sites do not surrounded by shrub and grass. The main Huangbai strike direction of southeast to Agro-forestry Stream, Xi Stream, Taokeng Stream. encroach upon or adjoin any animal are rats, and common birds. No rare Zherong Township northwest. It has an average Comprehensive Xinrong Stream has the largest cultural relics, places, or any flora or fauna species have been identified. elevation of 600 m. The Investment Co. Ltd catchment area (10,600 ha) other protected areas. There are no areas of national or provincial mountain area covers 510 Zhayang 2 protection for wildlife and ecology in the km , which is about 94.6% of Township vicinity of the subproject. the county land area. Typical natural vegetation types: evergreen The main river flowing through the coniferous forests, shrub, evergreen Jiaocheng is located in the subproject area is Xietan Stream, which The subproject sites do not broadleaf forest, mixed forest, bamboo forest, Shihou foothill of Jiufeng Mountains, is the upstream reach of Jiao Stream, encroach upon or adjoin any grassland. Township in east of the sea. Elevation has and Huotong Stream. cultural relics, places, or any The project does not encroach on any Jiaocheng a descending trend from west The subproject areas do not encroach other protected areas. naturally vegetated areas, ecological or to east upon, or adjoin drinking water source environmentally sensitive areas or habitats of protection areas. rare or endangered species. Natural vegetation in the county comprises Ningde Qilongxiang Dongqiao Xietan Stream, the upstream of Jiao evergreen forest, coniferous forest, Agriculture Co. Ltd Stream, with a length of 56.5 km and evergreen broadleaf forest, bamboo forest, Zhongshan Mountain, located 2 449.9 km catchment area. The tributary secondary bush and grass. in the northwest of the county, The subproject sites do not includes Chang Stream, Jiuling Stream, The subproject site supports oil-tea camellia, Wuqu Town has the highest elevation of encroach upon or adjoin any Shibaqu. There are more than 1,700 tung tree, tea, Chinese chestnut, persimmon, in Shouning 1649m. Elevation of the cultural relics, places, or any streams and streams in the County, of pears, peaches, plums, oranges and remainder of the county is in 2 other protected areas. which, 5 rivers with larger than 100 km bananas. the range 400 m - 800 m ASL. of catchment area, the annual average There are no areas of national or provincial runoff is 1.78 billion m3. protection for wildlife and ecology in the vicinity of the subproject. Source: FSRs and Subproject EIA Tables.

C. Environmental Baseline at Project Sites

118. Environmental baseline values for water quality and soil quality at all subproject sites were recorded by the EIA Institutes for the DEIAs using a sampling program to indicate compliance with relevant national standards. These are Surface Water Quality Standard (GB3838-2002) and Soil Environmental Quality Standard (GB15618-1995).

119. The closest waterbodies to the subprojects in all but Datian and Dongqiao counties comply with Class III standard of GB3838-2002, which means that the water is suitable for water source protection for centralized drinking water supply, sanctuaries for common species of ﬁsh, and swimming zones. At Dongqiao, the water quality at the subproject site is Class IV and is suitable for general industrial water supply and recreational waters in which there is not direct human contact with the water. At Datian, the water quality is Class V and suitable only for agricultural irrigation and livestock. Sampling results are in Table V.6 and the sampling and analysis details (sampling times, location and laboratory) are in Attachment 3. Local environmental monitoring stations had differing capabilities in the range of parameters they could analyse. The external monitoring of water quality required by the EMP has been adjusted to be compatible with these capabilities.

120. Only one component of one subproject uses groundwater (Fujian Zhengyuan Ecological Food Town Co in Guangze County). The groundwater quality at this locality was sampled on 28 March 2014 and complies with Grade III standard of the Groundwater Quality (GB/T 14848-1993).

121. Soil quality was sampled at the subproject sites. Particular attention was paid to subprojects with valley floor cropping components, since these lands are subject to flooding and sediment deposition from upstream. Where only upper slope tea gardens were on in-situ soils, without the possibility of pollution from activities on higher slopes, soil sampling was not necessary. All soils sampled meet the Grade II standard of Soil Environmental Quality Standard (GB15618-1995), which indicates good quality soil for agriculture without significant contaminants. Sampling results are in Table V.7 and the sampling and analysis details are in Attachment 3. Local environmental monitoring stations had differing capabilities in the range of parameters they could analyse. The external monitoring of soil quality required by the EMP has been adjusted to be compatible with these capabilities.

122. Air quality and noise environment were not sampled. The project sites are in remote mountainous and high valley locations which are agricultural settings without significant urbanization or industrial development. The DEIAs reviewed existing county EPB data, which showed that all sites comply with Class II of GB3095-2012 for air quality, which is the standard for residential and rural areas, and ambient noise levels at all sites meet Grade II of GB3096-2008, which is the standard for residential and commercial areas.

Table V.6a: Water Quality Sampling Results

CODC Fecal Project Implementing Unit pH DO CODMn BOD5 NH3-N TP TN Sulfate r coliform - - 0.184- 0.06-0 - 2200- - 6.86-6.93 14-16 2.7-3.0 0.242 .09 2400 - - 0.191- 0.07-0 - 2800- - 6.80-6.85 14-17 2.7-3.2 0.236 .10 3100 Wuyishan Zhuzi Ecological - - 0.234- 0.08-0 - 3100- - 6.83-6.89 16-19 3.3-3.6 Agriculture Co., Ltd 0.288 .09 3500 - - - - - 940- - 6.91-6.97 12-13 2.3-2.6 1100 - - - - - 1400- - 6.92-7.01 14-16 2.7-3.3 1800 Fujian Zhengyuan Ecological 6.74 7.21 3.74 10.0 0.9 0.23 0.033 0.26 1800 - Food Town Co., Ltd 6.63 7.1 3.12 14.4 1.76 0.577 0.177 0.737 5400 -

Project Implementing Unit pH DO CODMn CODC BOD5 NH3-N TP TN Fecal Sulfate 7.12 7.7 1.4 12r 1.1 0.074 0.014 0.09 coliform1300 0.79 7.23 9.5 2.2 12 1.4 0.025 0.032 0.23 130 0.55 Fujian Datian County Golden 6.91 9.3 0.5 5 0.3 0.064 0.019 0.3 50 0.18 Phoenix Agricultural 6.85 8.8 0.5 5 0.3 0.025 0.04 0.28 50 0.18 Development Co., Ltd 7.14 10.3 3.7 10 1.1 0.103 0.04 0.23 330 0.51 6.87 9.2 1.8 5 0.5 0.067 0.027 0.26 9200 5.08 6.7 ------Youxi County Yangzhong 6.6 ------Xinkaicheng Urban 6.8 ------Construction Co., Ltd 6.7 ------Youxi County Shenlang Edible ------6.82 0.04 33 21 Oil Co., Ltd Ninghua State-owned 6.88 6.5 - 3.3 - 0.377 - - - - Ecological Forestry Co., Ltd 6.79 6.9 - 3.1 - 0.423 - - - - Ninghua Science and 6.81 6.7 - 3.3 - 0.417 - - - - Technology Co., Ltd 6.89 6.6 - 3.2 - 0.389 - - - - Fujian Chunhui Tea Co., Ltd 7.22 5.8 - 2 - 0.676 - - - - Fujian Cuiyun Tea Co., Ltd 7.18 6.1 - 2.1 - 0.578 - - - - 7.35 6.3 - 3.4 - 0.46 - - - - Fujian Jinxi Tea Co., Ltd 7.12 6 - 3.2 - 0.417 - - - - Fujian Houde Agro-forestry 7.25 6.8 - 2.4 - 0.316 - - - - Ecological Co., Ltd 7.34 6.5 - 2.2 - 0.326 - - - - 6.83 - - 12 3.01 0.451 0.12 - - - Longyu Ecological Industry 7.19 - - 13 2.06 0.066 0.102 - - - Development Co. Ltd 7.14 - 3.1 9 1.83 0.294 0.118 - - - Longyan Greenland Ecological 5.83 6.17 8.24 18 4.2 1.33 0.08 1.2 6800 - Agriculture Development Co. 6.14 7.48 3.85 22 4.6 1.35 0.34 1.36 9600 - 7.05 6.1 - 14 2 0.063 0.086 0.25 - - 7.1 6.3 - 13 2.5 0.089 0.078 0.32 - - 6.99 6 - 14 2.3 0.071 0.082 0.3 - - 6.92 6 - 19 3.1 0.314 0.097 0.43 - - 7.08 5.8 - 15 2.9 0.27 0.095 0.48 - - 7.13 6.2 - 16 3.3 0.256 0.101 0.5 - - 7.1 6.5 - 14 2.3 0.208 0.081 0.28 - - Fujian Xinghe Investment 7.21 6 - 16 2.6 0.213 0.078 0.37 - - Development Co. Ltd 7.16 6.2 - 13 2.4 0.21 0.075 0.3 - - 7.04 6.4 - 12 1.9 0.143 0.068 0.34 - - 6.97 6.2 - 10 2 0.137 0.073 0.29 - - 7.09 6.5 - 10 1.7 0.126 0.071 0.32 - - 7.13 5.9 - 19 3 0.314 0.097 0.59 - - 7.16 5.6 - 18 3.2 0.308 0.102 0.52 - - 7.1 5.7 - 19 3.4 0.32 0.089 0.5 - - 7.1 5.7 - 16 3.1 0.17 0.091 0.32 - - 7.05 5.9 - 18 2.9 0.18 0.088 0.36 - - 7.13 5.7 - 18 3.1 0.18 0.092 0.33 - - 7.09 5.3 - 17 3.0 0.185 0.087 0.41 - - Fujian Hongsheng Gardening 7.12 5.4 - 16 2.7 0.183 0.082 0.39 - - Co. Ltd 7.10 5.4 - 17 2.8 0.177 0.085 0.37 - - 7.13 5.2 - 14 2.5 0.180 0.086 0.38 - - 710 5.5 - 15 2.7 0.179 0.090 0.35 - - 7.08 5.3 - 15 2.6 0.181 0.081 0.39 - - 6.89 6.5 3.4 - 2.8 0.235 - - - - 6.88 6.6 3.5 - 2.8 0.225 - - - - Fujian Farms Agribusiness Tea 6.9 6.6 3.5 - 2.7 0.238 - - - - Co., Ltd 6.88 6.7 3.6 - 2.8 0.238 - - - - 6.91 6.7 3.4 - 2.8 0.24 - - - - 6.87 6.8 3.6 - 2.8 0.227 - - - - 7.28 7.4 - 10 2.4 0.048 - - - - 7.26 7.0 - 14 3.4 0.180 - - - - 7.15 6.8 - 17 3.4 0.434 - - - - Fujian Lvyin Agriculture Co., Ltd 7.29 7.5 - <10 1.9 0.084 - - - - 6.91 6.6 - <10 1.9 0.079 - - - - 7.15 6.7 - <10 1.9 0.052 - - - -

Project Implementing Unit pH DO CODMn CODC BOD5 NH3-N TP TN Fecal Sulfate Ningde Qilongxiang Agriculture - - -r - - - coliform- 6.95 0.01 26 Co. Ltd Source: County EMS via PMO.

Table V.6b: Groundwater Quality Sampling Results for Fujian Zhengyuan Ecological Food Town

Co. (the only subproject using groundwater)

N -

pH 3 Cr+6 Pb Hg As Cu Zn Cd FN

coliforms

hloride

luoride

nitrite

Nitrate

Sulfate

Permanganate Tota <0.0 <0.00 <0.02 <0.000 <0.00 0.007 0.002 <0.002 52 16 0.63 <0.00 70 Results 6.98 1.3 <0.5 0.0028 2 4 5 1 1 9 8 5 2 GB/T 6.5-8. <=3. <=0. <=2 <=0.0 <=0.0 <=0.0 <=0.00 <=0.0 <=25 <=25 <=1. <=3. 14848-199 <=1.0 <=1.0 <=0.01 0.002 5 0 2 0 2 5 5 1 5 0 0 0 0 3 Grade III Source: County EMS via PMO.

Table V.7: Soil Quality Sampling Results Project Implementing Unit pH Cd Hg As Pb Cr Cu Zn Ni HCH DDT

Wuyishan Zhuzi Ecological Agriculture 7.15 0.05 0.031 3.4 45.3 51 26 73.9 18 0.0042 0.0113 Co., Ltd 6.86 0.04 0.026 3.1 41.7 63 23 66.1 16 0.0058 0.0137 Fujian Zhengyuan Ecological Food Town 5.6 0.05 0.05 2.9 49.3 32 10 60.5 14 ND ND Co., Fujian Datian County Golden Phoenix 4.14 0.04 0.079 3.6 45.6 10 6 43.8 ND ND ND Agricultural Development Co., Ltd 4.76 0.05 0.133 9.52 21.2 38 18 29.4 7 ND ND 5 0.075 0.038 6.81 16.7 24.9 5.62 - - - - 4.9 0.059 0.042 7.92 18 24.1 7.5 - - - - 4.5 0.071 0.042 5.52 14.3 26.2 9.02 - - - - 4.7 0.062 0.035 6.72 19 20.5 10.8 - - - - Youxi County Yangzhong Xinkaicheng 4.8 0.073 0.028 5.62 15.4 24.4 13.8 - - - - Urban Construction Co., Ltd 4.9 0.054 0.032 7.79 20.2 18.3 - - - - - 5 0.11 0.045 7.16 26 37.9 8.92 - - - - 5.1 0.095 0.032 8.12 23.4 37.7 9.23 - - - - 4.8 0.088 0.033 6.17 13.7 22.3 9.4 - - - - 4.7 0.08 0.03 8.49 13.2 21.4 9.57 - - - - 5.0 - 0.045 7.16 26.0 - 8.92 - - - - 5.1 - 0.032 8.12 23.4 - 9.23 - - - - 5.0 - 0.038 6.81 16.7 - 5.62 - - - - 4.9 - 0.042 7.92 18.0 - 7.50 - - - - 4.5 - 0.042 5.52 14.3 - 9.02 - - - - Youxi County Shenlang Edible Oil Co., Ltd 4.7 - 0.035 6.72 19.0 - 10.80 - - - - 4.8 - 0.028 5.62 15.4 - 13.80 - - - - 4.9 - 0.032 7.79 20.2 - - - - - 4.8 - 0.033 6.17 13.7 - 9.40 - - - - 4.7 - 0.030 8.49 13.2 - 9.57 - - - - Ninghua State-owned Ecological Forestry - - - - - 6.5 15.8 48.3 33.4 ND ND Co. Fujian Ninghua County Ninghua Science - - - - - 6.5 16.1 47.9 34.5 ND ND and Technology Co., Ltd Fujian Chunhui Tea Co., Ltd 6.5 - - 15.9 - 39.8 67.3 - - ND ND Fujian Cuiyun Tea Co., Ltd 6.9 - - 18.3 - 44.3 32.3 - - ND ND Fujian Jinxi Tea Co., Ltd 6.8 - - 11.9 - 31.4 22.7 - - ND ND 6.65 0.04 0.2 9 35 9.6 8.4 - - - - Longyu Ecological Industry Development 6.87 0.11 0.16 6.2 38 18 4.8 - - - - Co. Ltd 6.52 0.11 0.22 8.4 20 9.6 7.2 - - - - Longyan Greenland Ecological Agriculture 5.6 0.05 0.05 2.9 49.3 32 10 60.5 5 0.01 0.01 Development Co. Ltd Fujian Xinghe Investment Development Co. 5.79 0.195 0.029 2.55 17.8 23.1 - - - - - Ltd 6.12 0.164 0.014 1.98 7.21 17.3 - - - - -

Project Implementing Unit pH Cd Hg As Pb Cr Cu Zn Ni HCH DDT 6.34 0.103 0.017 1.5 8.9 18.4 - - - - - 6.59 0.112 <0.002 4.21 8.02 36.3 - - - - - 6.71 0.135 0.022 2.30 6.11 29.5 - - - - - Fujian Hongsheng Gardening Co. Ltd 6.72 0.181 0.019 1.89 9.12 18.6 - - - - - 6.80 0.098 0.027 3.01 17.3 20.4 - - - - - 6.58 0.100 <0.002 2.06 12.0 15.7 - - - - - 5.9 - 0.22 18 40.8 - 26.5 109.5 - - - Fujian Farms Agribusiness Tea Co., Ltd 5.7 - 0.25 17.8 45.9 - 28.5 114.5 - - - 5.8 - 0.17 15.9 37.8 - 25.4 105.8 - - - Ningde Qilongxiang Agriculture Co. Ltd - <0.1 0.21 5.96 61.5 40.4 53.9 - - <0.003 <0.003 Source: County EMS via PMO.

D. Socio-economic and Resources Setting of Project

123. In 2013, the GDP of Fujian Province was CNY 2,175.96 billion, averaging CNY 57,856 per capita, about 138% of the national average (CNY 41,908). GDP composition ratios for the primary, secondary, and tertiary sectors were 8.9%, 52.0%, and 39.1%, respectively. There were 1.38 million hectares (ha) of farmland. On average, each rural person had about 0.058 ha (0.88 mu) of farmland, which was only about 65% of the national average. Income in rural areas was CNY 11,184 per capita in 2013, which was 26% higher than the national average (CNY 8,896). For urban residents, the average income was CNY 30,816 per capita, which was about 11% higher than the national average (CNY 26,955). Table V.8 provides summary economic information for Fujian Province. Like most other provinces, Fujian has experienced rapid economic growth over the past two decades.

Table V.8: Basic Socio-economic Conditions in Fujian Province (2013) Economic Indicators Fujian PRC Fujian as % of PRC Total Population (million) 37.74 1,360.72 2.77 Total Rural Population (million) 22.93 629.61 3.64 Total Urban Population (million) 14.81 731.11 2.03 Total GDP (billion CNY) 2,175.96 58,801.88 3.70 Per Capita GDP (CNY) 57,856 43,320 133.55 GDP In Agriculture Sector (billion CNY) 193.66 5,532.17 3.50 GDP Industrial Sector (billion CNY) 1,131.5 25,681.00 4.41 GDP In Tertiary Sector (billion CNY) 850.8 27,588.70 3.08 Total Farmland (million ha) 1.38 121.72 1.13 Irrigated Farmland (million ha) 1.17 63.47 1.84 Per Capita Farmland (Mu) 0.88 1.35 65.19 Per Capita Income In Rural Area (CNY) 11,184 8,896 125.72 Per Capita Income In Urban Area (CNY) 30,816 26,959 114.31 Source: China and Fujian Statistical Yearbooks 2014

124. Administrative areas. The project will cover 13 counties from 5 municipalities. It has a total land area of 25,283 km2 with a population of 4.64 million by the end of 2013. Five of the 13 counties (Guangzhe, Pinghe, Ninghua, Shouning, Zherong) are provincial level poverty counties. There are 212 township-level units in these 13 counties, and 3,262 administrative villages (Table V.9).

Table V.9: Administrative Units in 13 Project Counties Items Project Counties Fujian Province Number of Municipalities 5 9 Number of County 8 45 Number of County-Level Cities 3 14 Number of Districts 2 26 Number of Towns or townships 212 929 Number of Villages 3,262 14,429 Source: Relevant county statistical yearbook 2014, and Fujian Statistical Yearbooks 2014.

125. Population. In the 13 project counties, the total population was 4.64 million in 2013, about 12.29% of Fujian Province (Table V.10). The total land area of 13 project counties was 20,428 km2. As a result, the average population density was 135/km2, which was significantly lower than provincial average. The ratio of urban population in project counties was 31%, which was significantly lower than the Fujian provincial average (39%).

Table V.10: Basic Demographic Profile of the Project Counties, 2013 (unit: 10,000; %) Total Urban % of Urban Rural County Males Females Population Population Population Population Wuyishan 16.22 3.84 24% 12.38 8.46 7.76 Guangzhe 23.03 5.73 25% 17.3 12.35 10.68 Datian 37.35 9.06 24% 28.29 20.01 17.34 Youxi 60.11 15.92 26% 44.18 32 28.1 Ninghua 36.96 6 16% 30.96 19.34 17.62 Yongding 49.2 10.36 21% 38.84 25.58 23.62 Xinluo 49.78 33.44 67% 16.34 25.08 24.7 Pinghe 16.6 5.69 34% 10.91 8.59 8 Huaan 23.48 8.14 35% 15.33 11.99 11.49 Fuan 66.29 19.56 30% 46.73 34.92 31.37 Jiaocheng 47.02 15.19 32% 31.83 24.19 22.83 Zherong 10.74 3.17 30% 7.58 5.65 5.09 Shouning 26.98 5.74 21% 21.24 14.31 12.66 Total 463.76 141.84 31% 321.91 242.47 221.26 Fujian 3,774 1481 39% 2,293 1,870.92 1,762.73 As %Fujian 12.29% 9.58% 14.04% 12.96% 12.55%

Source: Relevant County Statistical Yearbook and Fujian Statistical Yearbook for 2014.

126. The 13 project counties had a total GDP of CNY213.36 billion in 2013, or CNY46,008 per capita (86.27% of the provincial average; CNY57,856) (Table V.11). The proportion of the agriculture sector in the economy was 16.4% in the project counties, higher than the provincial average (8.9%). The proportion of the secondary sector (industrial and building sector) was 51.5% in project counties, lower than the provincial average (52%). The proportion of the tertiary sector (32.0%) was lower than the provincial average (39.1%).

Table V.11: Economic Performance in the Project Area (2013) (100 million, CNY) GDP Primary Sector Secondary Sector Tertiary Sector Per Capita Project (CNY x Amount Amount Amount GDP County % % % 10^8) (CNYx10^8) (CNYx10^8) (CNYx10^8) (CNY) Wuyishan 109.89 22.20 20.20% 41.23 37.52% 46.46 42.28% 47,779.00 Guangzhe 61.50 27.08 44.03% 20.39 33.15% 14.03 22.81% 47,308.00 Datian 135.30 24.97 18.46% 73.04 53.98% 37.29 27.56% 43,529.00 Youxi 157.05 43.03 27.40% 70.31 44.77% 43.71 27.83% 44,564.00 Ninghua 91.05 24.48 26.89% 39.66 43.56% 26.91 29.56% 33,232.00 Yongding 168.59 25.31 15.01% 87.67 52.00% 55.61 32.99% 46,828.00 Xinluo 568.68 23.82 4.19% 349.65 61.48% 195.21 34.33% 82,658.00 Pinghe 140.44 50.11 35.68% 40.31 28.70% 50.02 35.62% 28,318.00 Huaan 80.80 18.60 23.02% 42.56 52.67% 19.64 24.31% 50,330.00 Fuan 307.02 38.39 12.50% 190.36 62.00% 78.27 25.49% 54,006.00 Jiaocheng 214.67 30.76 14.33% 93.99 43.78% 89.92 41.89% 48,943.00 Zherong 42.22 7.20 17.05% 24.34 57.65% 10.68 25.30% 47,696.00 Shouning 56.48 13.96 24.72% 26.16 46.32% 16.36 28.97% 32,179.00 Total 2,133.69 349.91 16.40% 1,099.67 51.54% 684.11 32.06% Fujian 21,759.64 1,936.31 8.90% 11,315.30 52.00% 8,508.03 39.10% 57,856.00 Source: County Statistical Yearbooks, 2014

127. Poverty. Poverty levels in the subproject township vary significantly, from1.4% of the population in the project townships of Fu’an County to 28.5% in Guangze. The highest

poverty areas are in Guangze, Ninghua, Yongding and Hua’an counties. At the end of 2011, the official poverty line in PRC was 2,300 CNY/year (Table V.12).

Table V.12: Poverty Levels in Project Areas % Poverty Population of County Townships Villages Poverty population Total Population Wuyishan 1 9 463 3.6 Guangze 6 16 3262 28.5 Datian 12 19 557 1.9 Youxi 4 8 465 2.2 Ninghua 6 22 3702 9.2 Yongding 3 6 817 6.4 Xinluo 1 6 1171 4.3 Pinghe 4 5 506 3.1 Hua'an 2 3 391 7.3 Fu'an 2 3 45 1.4 Jiaocheng 4 26 559 1.7 Zherong 3 6 220 4.7 Dongqiao 4 5 80 1.8 Total 52 134 12238 Source: Relevant County Statistical Yearbook and Fujian Statistical Yearbook for 2014.

128. Agriculture. Provincial gross agricultural output value in 2013 was CNY317 billion, with crops accounting for 43%, fishery products 31%, animal husbandry 16%, and forest products 9%. Gross agricultural output value of the project counties was CNY57.47 billion, including 54.6% for crops and 12.5% for forest products (Table V.13). The main agricultural products of the project counties included grain, oil seeds, sugar cane, tea, and fruit.

Table V.13: Main Agricultural Products in Project Counties (2013) (ton) County Grain Oil Sugar Cane Tea Fruit Meat Fish Wuyishan 80,305 1,354 305 735 3,245 251,991 10,898 Guangzhe 73,918 2,797 7,250 1,305 34,906 112,063 6,172 Datian 118,005 1,907 22,029 7,528 109,030 21,493 5,890 Youxi 76,105 3,155 610 10,852 1,420,773 26,787 6,962 Ninghua 199,921 7,109 349 2,228 53,859 15,783 9,017 Yongding 52,187 746 9,213 7,905 29,628 24,793 160,517 Xinluo 80,998 609 1,527 9,323 54,487 25,221 9,018 Pinghe 16,498 558 52,583 20,409 53,015 13,724 3,180 Hua’an 133,010 2,497 9,111 12,920 30,192 12,226 9,740 Fuan 63,030 46 14,351 9,109 5,905 2,124

Jiaocheng 96,625 978 24,120 21,355 183,000 19,985 77,484 Zherong 34,924 895 3,198 770 4,812 1,148

Shouning 40,036 167 2,750 7,758 3,439 7,370 1,894 Total 1,065,562 22,818 129,847 119,867 1,985,453 542,153 304,044 Fujian 2,050,819 288,261 586,246 346,989 6,585,444 2,112,054 6,587,587 % of Fujian 52% 8% 22% 35% 30% 26% 5% Source: Fujian Statistical Yearbook, 2014 and county statistical yearbooks, 2014.

129. Services. All of the villages involved in project activities have access to basic existing infrastructure including roads. However, some villagers have difficulty to access tap water and no villages have access to a sewerage system. Some villages only have access to well water or piped water to the house (Table V.14).

Table V.14: Project Villages with Access to Services % access to % of Access to % of Access % of Access to % of Access to % of Access wastewater electricity to tap water village clinic village school to road drainage system 100 80 100 100 100 0 Source: Village Leader Interviews and FGDs, 2015.

130. The project will improve the handling and disposal of plastic agricultural film (mulch) and packaging from fertilizer and pesticides. A provincial system of solid waste handling at the village level (collection and disposal) was established in Fujian Province in 2009. Trash bins are provided at each village, transportation vehicles are provided at each township and landfills have been constructed and are operated in each county. Villages are responsible for collection, townships are responsible for transportation and the counties are responsible for solid waste treatment. For any plastic film that is not biodegradable or included in existing government sponsored recycling programs, the PPEs will hire farmers to collect the agricultural plastic film and transport it to the village trash bin and then finally transported to county landfill.

131. The proposed project will be carried out in 12 villages. There are 57,773 households and 227,788 in these villages, which account for 12.04% of total population in 51 project towns, and 4.6% in 13 project counties. Among total population, 55% are labors, with female labors accounting for 45%. The average land holding is 1.08 mu, and poverty ratio is 3.3%.

VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

132. This section assesses the potential for beneficial and/or adverse environmental impacts during the project construction and operational phases, and the mitigation measures to be implemented during detailed design, pre-construction, construction, and operation.

A. Project Benefits

133. Water and soil erosion control. In four subproject areas (Datian, Junxi and Qianping Townships) more than 10% of erosion lands are classed as moderate, severe or extreme, and in one county (Ninghua), Haitu and Shibi towns have more than 35%. The project will support land rehabilitation and soil erosion control practices for all subprojects, including the application of intercropping, non- or minimum tillage, and bamboo-joint ditches. The target of these improvements is to further reduce the levels of severe and moderate soil erosion in subproject sites, transforming them to light or allowable levels of erosion.

134. Sustainable use of water. The sustainable use of water has been affirmed by the analyses of seasonal water availability and water demand using normal year, dry year (P=90%) and extremely dry year (P=95%) scenarios for all subprojects. All tea and tea oil components of subprojects will harvest site runoff rainwater. This will ensure that local water resources are not depleted (since 75-99% of site runoff will return to the local waterbodies. Subprojects with valley floor cropping components will augment on-site runoff supplies with extraction from local streams. Irrigation technologies comprise sprinkle and trickle (drip) irrigation which allow real time control of water application.

135. Infrustructure improvement and management. The project will rehabilitate farm infrastructure, such as farm tracks, irrigation facilties (including weir rehabilitation), and stream embankment construction for farmland protection. Furthermore, the project will promote good management of the constructed infrastructure. Farmland infrastructure management and maintenance associations will be established and piloted.

136. Chemical fertilizer and pesticide application reduction. Currently the approach to fertilizer application takes no account of soil fertility or crop needs and results in fertilizer overuse, and non-point source pollution, soil acidification, reduced soil organic matter and reduced long term fertility. The project will promote balanced fertilizer application and commercial organic fertilizer use.

137. The project will apply integrated pest management (IPM), in combination with insect trapping devices and insect killing lamps. This will complement the newly released central and provincial regulations on the PRC Action Plan for Reaching Zero Growth of Fertilizer and Pesticide Application till 2020. Under this plan, a comprehensive recommendation of pesticide applications for project-related agricultural crops has been prepared by the provincial Department of Agriculture (Attachment 4).

138. Support to farmer groups. The project will develop and support about 73 farmer cooperatives. These will coordinate the relationship between farmers and project enterprises to improve communication and provide year-to-year certainty to farmers. Coordinated and collective action to obtain higher market competitiveness and negotiation status will ensure that benefits accrue to the farmers groups and individually to farmers.

139. Training farmers and project-related entities. The PIUs will organize traning of project-related farmers and their own staff, including technical guidance for modern agricultural farming and sustainable farming production (Table IV.4). The PIUs will receive trainings from CPMOs to improve project management expertise (including financial management, and procurement).

140. Overall improved project design and integration with safeguards to avoid and minimize impacts. The project benefits described here have been planned through close coordination between the government, design institutes and PPTA team to strengthen subproject design, construction, and operations. Key design elements included: (i) soil structure improvement; (ii) water conservation and soil erosion control; (iii) balanced fertilization; (iv) use of organic fertilizer; (v) integrated pest management;21 (vi) intercropping; and (vii) reduced plastic pollution, through the use of biodegradable plastic polymers.

141. Environmentally friendly cultivation and processing systems to enable “green” food, and organic food certification are part of the project, as well as demonstration of new varieties of crops, and seedling nurseries (Table VI.1).

Table VI.1: Subproject Features Contributing to Sustainable Agriculture

County Project Implementing Units

ling nursery ling

Control

Balanced

Control

Green Green food

Fertilization

Organicfood

Intercrooping

Seed

Demonstrationof

OrganicFertilizser

Pest Prevention andPestPrevention

New Variety of Crops of Variety New Soil Improvement Soil for Improvement Wuyishan Zhuzi Ecological Agriculture WaterSoil Erosion and Wuyishan √ √ √ √ √ √ Development Co., Ltd Fujian Zhengyuan Ecological Food Town Guangze √ √ √ √ √ √ √ Co., Ltd Fujian Datian County Golden Phoenix Datian √ √ √ √ √ √ √ Agricultural Development Co., Ltd Youxi County Yangzhong Xinkaicheng √ √ √ √ √ Urban Construction Co., Ltd Youxi Youxi County Shenlang Edible Oil Co., √ √ √ √ √ √ Ltd Ninghua State-owned Ecological √ √ √ √ √ Forestry Co., Ltd Fujian Ninghua County Ninghua Science √ √ √ √ √ √ and Technology Co., Ltd Ninghua Fujian Chunhui Tea Co., Ltd √ √ √ √ Fujian Cuiyun Tea Co., Ltd √ √ √ √ √ √ √ Fujian Jinxi Tea Co., Ltd √ √ √ √ √

Fujian Houde Agro-forestry Ecological √ √ √ √ √ √ √ Co., Ltd Longyu Ecological Industry Development Yongding √ √ √ √ √ √ √ √ Co. Ltd Longyan Greenland Ecological Xinluo √ √ √ √ √ √ √ √ Agriculture Development Co. Ltd Fujian Xinghe Investment Development Pinghe √ √ √ √ √ √ √ √ Co. Ltd Hua'an Fujian Hongsheng Gardening Co. Ltd √ √ √ √ √ √ √ √

Fu'an Fujian Farms Agribusiness Tea Co., Ltd √ √ √ √ √ √ √ √ Jiaocheng Fujian Lvyin Agriculture Co., Ltd √ √ √ √ √ √ √ √ Fujian Jianye Agro-forestry Zherong √ √ √ √ √ √ √ Comprehensive Investment Co. Ltd Dongqiao Ningde Qilongxiang Agriculture Co. Ltd √ √ √ √ √ √ √

21 Integrated Pest Management (IPM) programs use comprehensive information on the life cycles of pests and their interaction with the environment. This information, in combination with available pest control methods, is used to manage pest damage by the most economical means, and with the least possible hazard to people, property, and the environment. IPM is not a single pest control method, but series of pest management evaluations, decisions, and controls.

B. Project Benificiaries

142. The increased productivity of the subprojects will result in increased farmer revenue from sale of products or increased employment opportunities. The project will directly benefit a large number of farming families involved in the PIUs as participating farmers or as farm labour (Table VI.1).

Table VI. 1: Project Beneficiaries Municipality County Households Population Women Poverty people* Wuyishan 3195 13031 3643 463 Nanping Guangze 5619 23309 5906 862 Datian 7740 29566 6431 892 Sanming Youxi 5495 20794 5418 507 Ninghua 11120 49376 11976 1972 Yongding 3746 12825 3255 503 Longyan Xinluo 7952 27109 5146 704 Pinghe 7305 29770 8386 923 Zhangzhou Hua'an 1406 5355 1229 208 Fu'an 1350 5244 1087 169 Jiaocheng 791 3160 823 98 Ningde Zherong 982 3897 1068 242 Dongqiao 1072 4353 1238 198 Totals 57773 227789 55606 7741 * At the end of 2011, the official poverty line in PRC was 2,300 CNY/year.

143. Non-project farmers. The project will promote cooperation between the enterprises and farmers, which will improve farmers' competitiveness in the market through production standardization, product safety guarantees, and product quality improvement. This will increase incomes of participating farmers. The project Poverty and Social Analysis and Action Plan notes that such changes may cause concerns from surrounding non-project farmers. To prevent conflicts, the social action plan requires that CPMOs and PIUs will introduce project details to non-project households and encourage them to accept the project enterprise cooperation model and participate in the project through new planting techniques and sale of farm produce. For those non-project farmers who do not want to participate, CPMOs and PIUs will provide the same training and technical support to them, including IPM and use of organic fertilizer, so that they could also benefit from project activities.

C. Subproject Screening and Assessment Scoping

144. PPMO’s main focus on selection criteria relates to: (i) meeting essential requirements for government supporting policies in the midwest of the PRC; (ii) continuing to focus on, and involve, key soil erosion-prone counties, and poverty alleviation counties; and (iii) including integrated demonstration of sustainable farmland development, modern agriculture development, environmental benefits, and poverty alleviation. To maximize the likelihood that potential subprojects were able to demonstrate sustainable farmland development and environmental benefits through project initiatives, the government made an initial selection of project areas which were remote from, and not affected by, industrial developments or mining and mineral processing runoff or pollution.

145. Discussion of the project areas and subproject selection criteria started between ADB and PPMO in early 2014, continued with the PPTA team, and resulted in a series of additional screening and selection criteria (to select participating counties and subprojects) and guiding principles (to ensure sound subproject design and implementation). These combine the relevant elements of PRC standards for land use and soil/water conservation and ADB Safeguard Policy requirements, and are described below.

1. Subproject Screening

146. Subproject selection criteria were those related to site, activities, community acceptance, and PIU requirements, as follows.

(i) Avoid all ecologically sensitive areas, including protected areas (all types of national and provincial reserves, protected source areas of municipal reservoirs, etc.), wetlands, water resource protection areas, documented sites for rare or threatened flora and fauna (including nationally protected species), and rare, threatened, or restricted-range habitats. It is assumed that these areas are identified and clearly described by the local (county) government. In the event that such sites are only detected in the PPTA stage, PMO and ADB would also review the need to remove the proposed site from the project.

(ii) Avoid lands with a slope of >25º. For these slopes, although the soil and water conservation law indicates that planting perennials in combination with adequate erosion control measures is allowed, only sites that have been used before should be considered for rehabilitation. Design of these sloping sites should be such that risk of failure (e.g. collapse of terrace walls) is minimal. Otherwise, the area will be kept as is, or improved as natural forest area with minimum disturbance.

(iii) Activities proposed for support by the project should focus on farmland preparation and its related infrastructure, and related green and sustainable production activities. Activities that will not be supported by the project include investment for (i) processing, (ii) construction of new reservoirs (capacity over 100,000m3 and/or dam wall height greater than 15m), and (iii) civil works for training and/or testing centers. Farm track construction activities should be classified by use, size and road surface. Selection of farm track construction activities to be supported by the project will be assessed on the need for, fit with the project objectives as well as economic and financial viability.

(iv) Subprojects must be favorable to villagers in sharing potential benefits: in particular they must support close cooperation among PIUs and cooperatives/villagers, with an emphasis on land areas under various cooperative management arrangements between PIUs and village cooperatives.

(v) Subproject PIUs must be willing to invest in farmland reclamation, ecological construction with demonstration and technical piloting.

(vi) For any sub-projects with "associated facilities" (as defined by ADB's SPS), those facilities will already have all relevant domestic environmental and/or social approvals. Associated facilities are facilities that are not funded as part of the project (funding may be provided separately by the borrower/client or by third parties), and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project, e.g. processing facilities.

(vii) PPEs must have clear land ownership rights without disputes and contracts meeting the willingness of land rights entities.

2. Technical Guiding Principles

147. The PPTA team engaged with CPMOs and candidate PIUs to ensure that subprojects contained design and operational elements to make them sustainable users of natural resources and climate-smart. These comprised:

(i) All activities for the modification of land use, including preparation for either cropland or forest plantation, should comply with strict regulations in order that exposure to erosive forces is kept to a minimum. Land clearing must be conducted according to technical specifications of soil and water conservation for sloping land. Building terraces and soil tillage must be carried out along contours and keeping vegetation between contour terraces to prevent soil erosion.

(ii) In the choice of new crops or new farming systems, the protection of the soil must be ensured. For any new system or crop, the time and degree of exposure to erosive forces must be taken into consideration. This is critical for crops that develop slowly or form little canopy (such as onions) or farming/cultivation systems where soil has to be tilled intensively for seedbed preparation.

(iii) Recommendations of fertilizer application (rates) based on local soil and crop conditions must be followed to avoid non-point source pollution.

(iv) Participating PIUs and farmer cooperatives must be committed to adopting international best-practices for soil and water management and conservation within their project designs.

148. Through several rounds of discussion on project components among the PPTA team, PPMO, CPMOs and PIUs, it was agreed that in view of the selection criteria, subprojects with significant environmental impacts would be excluded from the project. The PPTA team visited the sites, checking slopes and forest cover, and meeting with local EPBs, forest bureaus, and water resource bureaus to confirm any protection areas near subproject sites.

149. As a result, one proposed subproject was removed in order to avoid the clearance of 8,600 mu of natural forest and shrub land. Another, at Fu’an, was reduced to avoid water source protection land, and was subsequently deleted from the project. In five other subprojects (Jiaocheng, Youxi, Guangze, Ninghua and Xinlou), components involving a total of 30,083 mu of forest and shrub land clearing were removed from subproject designs.In two others (Datian and Yongding) subproject designs were changed to protect drinking water source zone and delete large capacity reservoir construction respectively (Table VI.3).

Table VI.3: Key Environmental Issues in Screening County Key Environmental Issue for Subproject Resolution Fu’an About 700 mu of proposed tea planting in Subproject removed from project the subproject area are within a Drinking Water Protection Area of Fu’an County. Jiaocheng 4,625 mu of proposed area are involved in Area of 4,625 mu was excluded from the Drinking Water Protection Area and subproject in July, 2015. including pine forest clearing Datian Two subproject villages are within Drinking Activity limited to tree planting in these two Water Protection Area village areas Zhangping Subproject included 8,600 mu of forest and Subproject removed from project shrub land clearing Youxi Subproject included 18,000 mu of forest and 18,000 mu of forest and shrub land clearing shrub land clearing for oil tea camellia removed from subproject. Subproject changed to rehabilitation of existing plantations rather than making new terraces Guangze Subproject included 578 mu of forest and 578 mu excluded from the subproject in May, shrub land clearing for tea 2015 Ninghua Subproject included 5,080 mu of forest and 5,080 mu excluded from the subproject in shrub land clearing for tea May, 2015 Yongding Subproject proposed construction of 8 Proposal replaced by 8 water storage ponds reservoirs with total capacity of 1 million m3 with total capacity of 52,000 m3

County Key Environmental Issue for Subproject Resolution Xinluo Subproject included 1,800 mu of forest land 1,800 mu of forest land clearing removed from clearing for oil-tea camellia the subproject. Subproject changed to rehabilitation of existing plantations rather than establishment of new areas.

150. In the event that before and during project implementation, but after the completion of the PPTA, new subprojects are needed to replace subprojects which have dropped out, the same selection criteria and technical guiding principles will be applied. This is included as a project assurance.

3. Scoping of Assessment

151. To improve subproject design, detailed sub-project data sheets were prepared and passed to design institutes. Subproject information was collected and discussed with CPMOs and design institutes. The PPTA team provided comments and suggestions on the project scoping for the revision of FSRs. The major environmental protection issues identified in these consultations were: (i) sustainable use of water resources; (ii) reduction of soil erosion; (iii) use of agricultural chemicals; and (iv)protection of biodiversity.

152. The PMO, design institutes and EIA institutes prepared DEIAs following the PPTA team advice and especially addressing the three key issues of use of water resources, soil erosion and use of chemicals.

153. Biodiversity protection was successfully addressed during subproject screening. All candidate subprojects which involved agricultural reclamation of natural areas were excluded from the project. The remaining subprojects involve rehabilitation of sloping land to terraces only on abandoned agricultural land and without regrowth of secondary natural flora.

154. It is noted that the majority of subprojects with tea components included, in their originally submitted plans, some clearing of regrowth forest and extensions into new, previously unfarmed areas. The major changes to these plans, as a result of screening to avoid any loss of biodiversity, are recorded in Table VI.2. However, a number of small boundary changes to avoid forest were made in subprojects as a result of the screening criteria emphasized in meeting by the PPTA team. It is important that these small boundary changes are observed during project implementation. Confirmation of and compliance with boundaries on the ground is included as a requirement of the EMP and in project assurances.

D. Pre-construction Phase: measures to be undertaken

155. The following measures will be implemented in the pre-construction phase to ensure the project’s environment management readiness.

 Institutional strengthening, including (a) appointment of a qualified environment and social officer within the Provincial PMO for the implementation phase; and (b) hiring of at least one loan implementation environment consultant (LIEC) within loan implementation consultant services by the PPMO.  Updating the EMP. The mitigation measures defined in the project EMP (Attachment 1) will be updated based on final technical designs. This will be the responsibility of the CPMOs, using local design institutes.  Contract documents. All tender documents will include the EMP obligations, including the environmental monitoring program. This will be the responsibility of the local design institute, with support of the CPMOs and the LIEC.  Environmental protection training. The LIEC, in conjunction with the PPMO Environment Officer, CPMO Environment Officers and collaboration of local EPBs,

will provide training on implementation and supervision of environmental mitigation measures to PIUs and their contractors.

E. Impacts and Mitigation Measures

156. There are three key potential areas of environmental risks for the project: soil erosion and soil loss; sustainable use of water resources; and, use of agricultural chemicals. These will occur in different phases of subproject implementation. The construction, or establishment, phase of the subprojects will be when erosion impacts will be most significant. Impacts from the exploitation of water resources for irrigation and the use of agricultural chemicals will focus on the operational phase of the subprojects. Other risks, such as impacts to air and water quality and noise, will occur during construction. Management of solid waste, and occupational and community health and safety, will be required during both phases, construction and operation.

1. Construction Phase Impacts

Erosion impacts

157. The potential for erosion to occur during the construction of terraces, establishment of plantations, land preparation for paddy and vegetable crops, and construction of unsealed farm tracks and drainage and irrigation infrastructure, is a critical concern for the project, especially in the key erosion control counties. The physical circumstances of each subproject in terms of soils, terrain, slope and land area were used to calculate the erosion potential modulus for each land use type and the total potential erosion for each subproject (summarized in Table VI.4; see Attachment 2 for all data).

Table VI.4: Erosion Potential for Subprojects Area of Area of Converted to t/km2/a Total potential County PIU valley slopeland (for comparison with soil erosion (t/a) floor (mu) (mu) standard*) Wuyishan Zhuzi Ecological Wuyishan Agriculture Co., Ltd 13,000 2,000 546.66 5,466.60 Fujian Zhengyuan Ecological Food Guangze Town Co., Ltd 361 6,657 888.06 4,154.94 Fujian Datian County Golden

Datian Phoenix Agricultural Development 18,000 50,000 6,825.89 309,440.35 Co., Ltd Youxi County Yangzhong

Xingkaicheng Urban Construction - 10,198 1,202.72 8,176.89 Youxi Co., Ltd Youxi County Shenlang Edible Oil Co., Ltd 14.50 8,018.00 965.96 5,172.72 Ninghua State-owned Ecological Forestry Co., Ltd - 26,500 3,847.97 48,227.89 Fujian Ninghua County Ninghua Science and Technology Co., Ltd - 2,394 345.19 1,746.65

Fujian Chunhui Tea Co., Ltd - 3,454 626.12 1,892.55 Ninghua

Fujian Cuiyun Tea Co., Ltd - 2,499 349.17 581.72

Ninghua Jinxi Tea Co., Ltd - 3,700 514.64 1,269.45 Fujian Ninghua County Houde Agro-forestry Ecological Co., Ltd - 9,600 1,328.54 8,502.66 Longyan Municipality Longyu

Ecological Industry Development Yongding 13,143 9,157 1,204.35 17,906.28 Co. Ltd Longyan Municipality Greenland Xinluo Ecological Agriculture Development 16,757 5,025 660.73 9,594.68

Co. Ltd Fujian Xinghe Investment Pinghe Development Co. Ltd - 29,098 3,993.56 36,780.65 Fujian Hongsheng Gardening Co. Hua'an Ltd 427 4,966 673.64 2,459.24

Fu'an Fujian Lvyin Agriculture Co., Ltd 500 8,000 1,083.17 3,610.56 Fujian Jianye Agro-forestry Jiaocheng Comprehensive Investment Co. Ltd - 4,460 521.59 1,793.57 Ningde Qilongxiang Agriculture Co. Zherong Ltd 500 14,700 1,924.22 19,498.76 Fujian Farms Agribusiness Tea Co. Dongqiao Ltd. - 6,000 802.90 3,211.60

Total 62,702.50 206,426 28,305.07 489,487.75 * South China Type 1 Standard for “hydraulic erosion” (500 t/km2/a).

158. The data shows that when the potential erosion per year for each subproject (based on slope and erosion modulus calculations) is converted to tons per square kilometer per year (t/km2/a), all subproject potentials exceed the South China Type 1 Standard for “hydraulic erosion” (500 t/km2/a) except for Ningde Baimashan Tea and Fujian Cuiyun Tea (marginal exceedence). This high potential highlights the critical need for strict erosion control during construction.

159. The potential soil loss through erosion from the proposed subprojects of Datian Golden Phoenix, Youxi Yangzhong, Ninghua SOE, Ninghua Science and technology, Ninghua Houde, Yongding Longyu, Pinghe Xinghe and Dongqiao Ningde PIUs are highest, due to the large areas of sloping land planned for terrace development. To assess the magnitude of the risk of large scale erosion from the subprojects the amount of earthworks for each has been calculated (Table VI.5)

Table VI.5: Magnitude of Earthworks for each Subproject Earth excavation Earth backfill Project PIU 3 3 (0'000 m ) (0'000 m ) Wuyishan Zhuzi Ecological Agriculture Development Wuyishan 21.08 10.54 Co., Guangze Fujian Zhengyuan Ecological Food Town Co., Ltd 14.61 14.54 Fujian Datian County Golden Phoenix Agricultural Datian 19.8 5.6 Development Co., Ltd Youxi County Yangzhong Xinkaicheng Urban 61 57.7 Youxi Construction Youxi County Shenlang Edible Oil Co., Ltd 47 45.3 Ninghua State-owned Ecological Forestry Co., Ltd 126.48 90.84 Fujian Ninghua County Ninghua Science and 69.16 51.61 Technology Ninghua Fujian Chunhui Tea Co., Ltd 14.02 8.76 Fujian Cuiyun Tea Co., Ltd 27.57 25.97 Fujian Jinxi Tea Co., Ltd 30 21.05 Fujian Houde Agro-forestry Ecological Co., Ltd 20.73 14.67 Yongding Longyu Ecological Industry Development Co. Ltd 224.95 224.95 Xinluo Longyan Greenland Ecological Agriculture Development 15.62 15.62 Pinghe Fujian Xinghe Investment Development Co. Ltd 19.54 19.54 Hua'an Fujian Hongsheng Gardening Co. Ltd 138.37 136.75 Fu'an Fujian Farms Agribusiness Tea Co., Ltd 23.5 21.9 Jiaocheng Fujian Lvyin Agriculture Co., Ltd 22.89 22 Fujian Jianye Agro-forestry Comprehensive Investment Zherong 41.96 31.86 Co. Dongqiao Ningde Qilongxiang Agriculture Co. Ltd 45.97 45.34 Totals 984.25 864.54

160. The data shows that excavation and backfill volumes for all subprojects are closely matched and there will be minimal excess spoil or stockpiles. However the amount of earth excavation during construction is the main indicator of the magnitude of potential erosion during this phase, since the exposed, mostly sloping surfaces will be open to the effects of rain and wind until stabilized. Of the subprojects identified in Table VI.3 as having the highest erosion potential, four also involve significantly large volumes of earthworks (Youxi County Yangzhong Xinkaicheng Urban Construction Co., Ltd; Ninghua State-owned Ecological Forestry Co., Ltd; and Longyu Ecological Industry Development Co. Ltd).

161. The following mitigation measures are set to limit soil erosion during construction. These measures will apply to all subprojects, since all involve some development of sloping land, however the subprojects listed above will be subject to special scrutiny under the EMP due to the large scale of earthworks planned.

162. The Fujian Provincial Soil Erosion Prevention Regulation Article 19 requires that “down-slope 22 reclamation, downslope cultivation and other unreasonable productive activity is forbidden. For lands located at Key Soil Erosion Prevention Zone, selective cutting is advocated and clear-felling to prepare for plantation development is prohibited; For Key Soil Erosion Control Zones, removal of existing vegetation is forbidden.” These basic provisions are followed by the project.

163. In addition, the project requires, through its technical guidelines for subproject designs, that all preparation for cropland or tea forest plantation must be conducted according to technical specifications of soil and water conservation for sloping land set in Soil and Water Conservation Law of PRC (25 December, 2010). These specifications are summarized as two principles and adherence to them is required by the EMP: (i) building terraces and soil tillage must be carried out along contours and keeping vegetation between contour terraces to prevent soil erosion; and (ii) for any new system or crop, the time and degree of exposure to erosive forces must be taken into consideration. This is critical for crops that develop slowly or form little protective canopy or farming/cultivation systems where soil has to be tilled intensively for seedbed preparation.

Impacts of Embankments

164. The subprojects at Wuyishan, Datian, Yongding and Xinluo involve the construction of embankments to protect valley floor cropping from floods. To avoid impact to downstream reaches on flows and turbidity, impact mitigation for embankment construction along streams in valley floor cropping areas will focus on scheduling construction work for October to February, to complete work during the lowest water levels of the year. A setback of 20 m from the stream banks will allow all trees currently existing along the banks to be retained and the “soft” earthen and vegetated foreshores to be unchanged. The embankments have been designed to have a natural soil surface and will be planted to grass and shrubs.

Impacts on Ecological Environment

165. To safeguard against the introduction of potential invasive weeds and pests, all project activities using new crop varieties (tea tree seedlings, camellia oil-tea tree seedlings, pomelo, ratooning rice, etc), will only locally adapted species. Crops or grasses used for intercropping and stabilizing base part of terraces should only use locally grown species or sterilized seedlings (i.e. which cannot propagate).

22 i.e. across contours.

166. To protect the regrowth forests, shrublands and grasslands, not within the footprint of the subproject developments but on their borders from careless and unplanned construction activities the following measures will be followed:

(i) The layout of construction sites shall minimize the areal extent of construction activities being undertaken at any time. Construction machinery and construction workers shall be strictly assigned to work areas and access corridors as part of site planning and without occupying land randomly. Construction machinery and construction materials will not be placed in naturally vegetated areas. (ii) Imported construction materials such as brick, stone, sand, cement and wood, shall be transported to the construction site in batches to meet demand so that stockpiles do not overflow onto naturally vegetated areas. After the completion of the project, cleaning and greening work shall be carried out to restore any damage.

Physical Cultural Resources

167. With the exception of the Yongding subproject, there is no record at the local County Administration of Cultural Heritage of important heritage or archaeological potential on or adjoining the lands that will be used for subproject development. Should archaeological artefacts be discovered during any site works, government requirements for excavating and preserving those items will be strictly followed. Chance find procedures will be established for undiscovered underground cultural or historic sites that might be identified during project implementation. This requirement is included in the EMP.

168. At the Yongding subproject site, no vehicles hauling materials or equipment to and from the site will be allowed to pass through the World Heritage site core and buffer zone. This will ensure that dust, noise and most especially vibration will not impact on the Tulou houses. Transport routes, confirming this prohibition will be included in the Yongding subproject Site Management Plan prepared in the pre-construction phase. Damage to any trees or shrubs on the ridgetop, which provides a backdrop to the World Heritage site will be strictly prohibited.

Other Construction Impacts

169. A number of construction impacts and mitigation measures will be common to all subprojects. They are generic in nature and refer to typical construction and farmland establishment works involving land preparation, use of machinery for earthworks, transportation of materials, farm track-making (including cementing) and water storage tank, canal and irrigation pipe construction. In some subprojects (Youxi Shenlang and Longding Longyu) greenhouses and nursery areas will also be constructed, producing building waste.

170. Air Quality. Air pollution is likely to occur during the construction phase, originating from a variety of sources, including: (i) movements of construction machinery; (ii) dust emissions due to earthworks, construction activities and materials haulage and stockpiling; and (iii) uncontrolled burning of waste. Ambient air quality of the sites has been sampled and is good. Any impacts on the air quality adjoining the site will be temporary and able to be mitigated. The PIUs and their contractors will include the following measures to reduce air pollution and dust development.

(i) Material stockpiles and concrete mixing equipment will be equipped with dust shrouds. Earthworks to prepare site should be undertaken just before commencement of construction to avoid long term stockpiling. The height of stockpiles should be less than 0.7 m to ensure stability under wind and rainfall conditions and the facilitate covering.

(ii) Vehicles transporting potentially dust-producing materials will have proper fitting sides and tail boards and covered with protective canvasses. (iii) On-site movement of cement bags should not overload people or vehicles to minimize bag rupture and spillage. (iv) Unauthorized burning of construction waste material shall be subject to penalties for the Contractor, and withholding of payment.

171. Pollution of surface and groundwater. Construction wastewater will be produced from the maintenance and cleaning of mechanical equipment and vehicles, maintenance water for mixing and curing concrete, cooling water, and lost water and soil during the construction period which is discharged as pollutants. It is unlikely that runoff from site will reach these distant waterbodies, however to guard against runoff and infiltration impacting the immediately surrounding water the contractors will do the following.

(i) Sedimentation tanks are built, and after settling out of solids the upper clear liquid is recycled for spraying the construction site (dust control), and the waste residue in the tank is cleared and transported to designated landfills. (ii) Oil traps are provided for service areas and parking areas, and oil-water separators are installed before the sedimentation tank for oil-containing wastewater. (iii) All construction machinery is repaired and washed at special repairing shops. No on-site machine repair and washing shall be allowed. (iv) Storage facilities for fuels, oil, and other hazardous materials are within secured areas on impermeable surfaces, and provided with bunds and cleanup kits. (v) The contractors’ fuel suppliers are properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

172. Noise. Noise can be expected during construction due to construction machinery operation and transport activities. Predicted noise levels at different distances were calculated according to the PRC standard method and the results show that, if construction machinery is used singly, the impact distance is 35 m away from the source during the day and 281 m at night. to meet the PRC standard of Noise Limits for Construction Sites (GB12523-2011) in distance. No work involving construction machinery or transport will be allowed at night.

173. There will be a variety of construction machinery and transport vehicles operating during the construction phase of the subprojects, but normally, the machinery will operate at intervals, and resultant noise will be intermittent and transient. Table VI.6 shows distances to sensitive receptors for all subprojects.The subproject areas are located in farmland and usually at a distance from villages. Where there is no sensitive point of acoustic environment within the impact distance, no mitigation is required.

Table VI.6: Distance to the villages from project sites Distance Sensitive County Township Village Remark (m) receptors? Wengdun 20 Yes

Xingxian 20 Yes

Wuyi 20 Yes

Wufu 20 Yes

Wuyishan Wufu Tianwei 50 Yes

Dajiang 20 Yes

Maochang 20 Yes

Xiwei 20 Yes

Diancun 20 Yes

Guangze Zhima Daoshi 300 No Sufficient distance from

Distance Sensitive County Township Village Remark (m) receptors? subproject sites Baimenlou 10 Yes

Sufficient distance from Hutang 324 No subproject sites Qinmu 26 Yes

Shanguan 205 No Zhima 50 No Paixia 435 No Sufficient distance from Meixi 100 No subproject sites Zhaili Qiaoting 2600 No Siqian Dongshan 740 No No Mountain village protected by Luanfeng Pingxi Farm 106 terrain Guanmi 535 No Sufficient distance from Lifang Lifang 1900 No subproject sites Shicheng 461 No No Mountain village protected by Huaqiao Wutun 76 terrain Pingshan 20 Yes

Meiyang 20 Yes

Neiyang 20 Yes

Ruimei 128 No Mountain village protected by Pingshan Keshan 160 No terrain Heyang 20 No Yangchun 20 No Small village, few households Jinshan 20 No Wushan 20 Yes Datian Jiyang Jiyang 20 Yes

Junxi Shangtai 20 No Small village, few households Huxing Hengkeng Group 20 No Qianping Jikeng 20 No Mountain village protected by Xieyang Zhenshan 20 No terrain Taoyuan Dongban Group 20 No Shangjing Shangjing 20 Yes Township seat No Mountain village protected by Shipai Gongqiao 20 terrain Yangzhong 417 No Guanyang 496 No Sufficient distance from Jishen 484 No subproject sites Yangzhong Houlou 195 No Youxi Longyang 79 No Small project area Lianyang 306 No Chenggua No Sufficient distance from Xiacun 140 n subproject sites Zhongxian Huayang 513 No Changtan 20 Yes

Banxi 450 No Sufficient distance from Xiasha 726 No subproject sites Zhongsha Lianshe 78 No Mountain village protected by Loujia 20 No terrain Ninghua Zhongsha 20 Yes

Sunkeng 100 Yes

Tianbei 20 Yes

Huaitu No Sufficient distance from Fengshan 70 subproject sites Shibian 83 No Mountain village protected by

Distance Sensitive County Township Village Remark (m) receptors? terrain Zhuyuan 20 Yes

Qiaotou 100 Yes

Tuanjie 118 No Chentang 100 No Mountain village protected by Gongqiao 62 No terrain Jiangjia 138 No Shibi Nantian 20 No Jiangtou 20 Yes

Xibei 127 No

Guankeng 131 No

Hutou Longtou 20 Yes

Caofang Pingshang 272 No Mountain village protected by Chengjiao Liantang 20 No terrain Hongkeng 60 No

Liulian 105 No

Xikoulv 61 No

Yongding Hongkeng No Mountain village protected by Jiaotang 40 terrain Gaotou 150 Yes

Guzhu 54 No

Zhongxin 20 Yes

Zhongxi 20 Yes

Renhe 20 Yes Xinluo Shizhong Xiangshan 20 Yes

Baofeng 20 Yes

Yangdong 20 Yes

Banzai Dongkeng 20 No Small village, few households No Mountain village protected by Sankeng 20 Jiufeng terrain Pinghe Meishan 20 Yes

No Mountain village protected by Xiaoxi Jingzai 314 terrain Qiling Yangpingke 760 No Huafeng Xiaban 707 No Sufficient distance from Makeng Hechun 600 No subproject sites Chengyan Zhanyang 341 No g Shangdai 160 No

Hua'an No Mountain village protected by Wangjia 20 Songluo terrain Songluo 20 Yes

Tanyang 50 No Shekou Xikou 50 No

No Mountain village protected by Lingyangtou 80 terrain Jiaocheng Badu Handan 550 No Sufficient distance from Hongmengli 382 No subproject sites Hongkeng 50 No

Chuping No Mountain village protected by Danchi 20 terrain No Sufficient distance from Shakengli 450 Zherong subproject sites No Mountain village protected by Huangbai Chenjiashan 80 terrain Shuanggangyang 20 No No residents Farm

Distance Sensitive County Township Village Remark (m) receptors? Zhayang Shishan 50 Yes

Mountain village protected by Shihou Linxiayang 30 No terrain Wuqu 30 Yes Dongqiao Dahan 30 Yes Wuqu Nan'an 325 No Sufficient distance from Hualong 1400 No subproject sites

174. For residents nearest the subproject sites (i.e. the sensitive receptors in Table VI.6), there will be short-term impacts from construction noise. Impacts will be minimized by the following measures.

(i) Erection of temporary noise barriers between the work site and residents where they are less than 35m apart. (ii) Daily construction schedules will be arranged to prohibit work in lunch break and at night. (iii) Villagers in the sensitive villages in Table VI.6 will be notified before construction activities which emit high noise levels are scheduled. (iv) The construction schedule will be arranged to avoid multiple large-scale and noise emitting machinery operating simultaneously.

175. To avoid noise impacts on sensitive points along the main roads from transport vehicles, the construction unit will reduce the number of vehicles and traffic flow, set speed limits, and, prohibit the use of the horn in villages. Regular checks and maintenance for all machinery and equipment to make sure they are in good condition and for quiet running.

2. Operational Phase Impacts

176. As a result of the PPTA’s selection criteria and scoping exercises undertaken with the EIA and design institutes, the assessment of operational impacts was focused on the key issues of: (i) sustainable use of water resources; and (ii) use of agricultural chemicals.

Sustainable use of water resources

177. The primary method for supplying water for irrigation in the subprojects will be the collection of runoff via on-site interception dams and drainage structures. From these, water will be directed to storage tanks and ponds. Most runoff water intercepted by dams will be directed to storage tanks, since this system can be designed for gravity feed. Water collected by drainage ditches will mainly be directed to ponds for settlement of solids before use for irrigation. Rainfall runoff will be used by most subprojects as first preference for irrigation water because this will save on water extraction fees. Components of subprojects which will rely entirely on runoff water are tea and tea-oil plantations with relatively low water demand:

 Youxi Yangzhong tea-oil; Youxi Shenlang tea-oil; Yongding Longyu tea and tea-oil; Xinluo Longyan tea and tea-oil; Pinghe Xinghe tea, tea-oil and pomelo; Fujian Farms Agribusiness Tea Co. Ltd; Jiaocheng Lvyin tea-oil; Zherong Jianye tea and tea-oil; and, Dongqiao Qilongxiang tea.

178. Components of subprojects in Datian, Guangze, Youxi, Xinluo, Yongding, Hu’uan and Zherong (including tea, tea-oil, rice, grain, pasture and nursery) will either use water from a nearby stream exclusively for irrigation or augment on-site runoff collection with pumping of water from a local stream. Only one subproject (Hua’an Hongsheng) will extract from groundwater.

179. The irrigation water requirement for plantations and crops and the water resources available to the subprojects was calculated by the PPTA team using data provided by the design institutes. A full description of the analysis of water resources and the derivation of cropping water demand and supply is in Attachment 5. Calculations for each subproject are summarized in Table VI.5. Water demand has been calculated from irrigation requirements for each crop type, the number of rotations per year and the planned total areas cultivated. Water sources are nominated as “Runoff” or “Stream” or a combination of both.

180. For the components only using runoff water collection for irrigation, the available water supply is calculated from rainfall data and site runoff volumes using a combination of runoff coefficients for forest/shrubland on upper slopes (where applicable) and agricultural lands on the lower slopes, which range from 0.57 to 0.62. For the components of subprojects which use water from a nearby stream exclusively or augment on-site runoff with extraction from a local stream, the water demand and supply calculations for available water use annual stream flow data calculated from the stream’s catchment.

181. In both situations, the calculations used rainfall/runoff data of P = 90% exceedance. These are rainfall/runoff values which would be exceeded 90% of the time (i.e. a 1 in 10 year drought).

182. For those components using only site runoff (i.e. all slopeland sites), proportions of water intercepted and collected to the site runoff volume range from less than 1% to near 40% (Table VI.7). This means that the majority of runoff from these mini-catchments will continue to feed into local streams and contribute to the river system. At typical irrigation efficiencies of 30-40% a high proportion of irrigation water also returns to the system via surface and subsurface flows. Water return rates to the local waterbody have been calculated as the runoff not intercepted for irrigation plus return irrigation at 40% irrigation efficiency (assuming 10-20% loss to evaporation and 20% loss to deep soil percolation). The table shows that these returns to the waterbody are high, at between 75% and 99% of the total runoff volumes.

183. For components using streams for water extraction, Table VI.7 shows the proportions of water extracted from local streams compared with the contributory flow of the first tributary upstream of the extraction point. The flow volume in the first upstream tributary has been used by the FSRs as a proxy measure for sustainable water availability for extraction, assuming that if the extraction demand can be satisfied by that small portion of the total stream flow then the extraction rate is sustainable. Overall, the mean proportion of extraction to tributary flow is 18% and no subproject’s water extraction volume exceeds 41% of the flow of the first upstream tributary. The project extraction volumes are therefore considered to be sustainable and will have no significant impacts on downstream flows or water users.

184. The tea seedling nursery planned as a component of the Hua’an Hongsheng subproject will draw water directly from pumped groundwater via new wells. The available water resource for this has been advised by the Hua’an water Resources Bureau as 961,000 m3, and the extraction rate is not significant, at 2.96%.

185. Stream extraction is by pumping directly from the watersource via agricultural pipe, with water directed to storage tanks or ponds. In two subprojects (Datian Golden Phoenix and Guangze Zhengyuan) existing in-stream weirs used as capture structures for water extraction will be rehabilitated, and the impacts of this in the operation phase are considered below.

Table VI.7: Water Demand and Water Supply Calculations for the Subprojects. Multiple entries per subproject reflects different sites (and therefore water sources) in the subproject area. Proportion of Water Gross water Annual runoff Water supply % unused Project implementing Irrigation area Irrigation 3 demand to County Water source demand demand (0'000 m ) capacity runoff to unit (mu) method 3 3 3 supply (0'000 m ) (0'000 m ) (0'000 m ) stream* P=90% % Runoff 4,649 Sprinkler 25.57 28.41 250.3 250.3 11.35% Fujian Zhengyuan Runoff 978 Piped- 5.38 5.66 63.6 63.6 8.90% 91.54% Guangze Ecological Food Town Runoff 1,030 Sprinkler 5.67 6.29 63.6 21.1 29.81% 73.17% Co., Ltd Stream 361 Furrow 19.78 27.48 250.3 250.3 10.98% 92.10% Wuyishan Zhuzi Stream, reservoir 2,000 Sprinkler 11.00 12.22 Wuyishan Ecological Agriculture 12,317.4 12,317.4 8.91% Stream 13,000 Furrow 770.1 1,084.7 Co., Ltd Youxi County Yangzhong Xinkaicheng Urban Runoff 10,198 Piped 50.99 59.29 1,536.7 1,536.7 3.86% 96.68% Construction Co., Ltd Youxi 3,500 Sprinkler 17.50 19.44 1,917.9 1,917.9 1.01% 99.09% Youxi County Shenlang Runoff 4,518 Piped 22.59 26.27 0.0 661.7 3.97% 96.59% Edible Oil Co., Ltd Runoff, stream 14.5 Furrow 0.09 0.12 1,090.9 1,090.9 0.01% Ninghua State-owned 24,105 Piped 120.53 140.15 840.8 840.8 16.67% 85.66% Ecological Forestry Co., Runoff 2,395 Piped- 11.98 12.61 840.8 260.5 4.84% 95.40% Ltd Fujian Ninghua County Runoff 2,394 Piped 11.97 13.92 457.3 457.3 3.04% 97.38% Ninghua Science and Runoff 651 Piped- 3.26 3.43 457.3 141.7 2.42% 97.70% Technology Co., Ltd Fujian Chunhui Tea Co., 1,360 Sprinkler 6.80 7.56 241.9 241.9 3.12% 97.19% Runoff Ninghua Ltd 2,094 Piped 10.47 12.17 241.9 75.0 16.24% 86.03% Fujian Cuiyun Tea Co., Runoff 1,219 Piped 6.10 7.17 161.1 161.1 4.45% 96.22% Ltd Runoff 1,280 Piped- 6.40 6.74 88.5 88.5 7.61% 92.77% Runoff 2,000 Sprinkler 10.00 11.11 91.5 91.5 12.15% 89.07% Fujian Jinxi Tea Co., Ltd Runoff 1,700 Piped 8.50 9.88 194.7 194.7 5.08% 95.63% Fujian Houde Agro-forestry Ecological Runoff 9,600 Piped 48.00 55.81 665.5 665.5 8.39% 92.79% Co., Ltd Runoff 21,500 Piped 107.50 125.00 7,234.6 7,234.6 1.73% 98.51% Fujian Datian County Runoff 3,500 Piped 17.50 20.35 1,189.4 1,189.4 1.71% 98.53% Golden Phoenix Runoff 5,000 Sprinkler 25.00 27.78 2,206.1 2,206.1 1.26% 98.87% Datian Agricultural Development Runoff 16,500 Piped 82.50 95.93 4,354.6 4,354.6 2.20% 98.11% Co., Ltd Runoff 3,500 Sprinkler 17.50 19.44 1,756.8 1,756.8 1.11% 99.00% Runoff, stream 18,000 Furrow 1323.00 1890.00 4,752.0 4,752.0 39.77% Stream 8,395 Furrow 476.84 681.19 Stream 598 Piped- 33.97 35.75 Longyu Ecological 5,232.3 5,232.8 18.94% Stream 10 Piped- 0.57 0.60 Yongding Industry Development Stream 4,140 Piped 235.15 273.43 Co. Ltd Runoff 5,565 Piped 27.83 32.35 1,061.4 1,061.5 3.05% 97.38% Runoff 3,592 Sprinkler 17.96 19.96 3,962.9 3,963.3 0.50% 99.55% Longyan Greenland Runoff, stream 12,008 Furrow 611.21 848.90 Xinluo 8,402.5 8,402.5 15.74% Ecological Agriculture Runoff, stream 2,000 Furrow 101.80 141.39 62

Water Gross water Water supply Proportion of % unused Project implementing Irrigation area Irrigation Annual runoff County Water source demand demand 3 capacity demand to runoff to unit (mu) method 3 3 (0'000 m ) 3 (0'000 m ) (0'000 m ) (0'000 m ) supply stream* Development Co. Ltd Runoff, stream 2,690 Furrow 136.92 190.17 Runoff, stream 1,864 Furrow 94.88 131.77 Runoff, stream 200 Drip 10.18 10.72 Runoff 1,820 Piped 9.10 10.58 97.7 97.7 10.83% 90.69% Runoff 1,100 Piped 5.50 6.40 101.0 101.0 6.33% 94.55% Runoff 100 Sprinkler 0.50 0.56 78.2 78.2 0.71% 99.36% Runoff 6,651 Sprinkler 36.58 42.54 195.7 195.7 21.73% 81.31% Fujian Xinghe Investment Runoff 3,428 Sprinkler 18.85 21.92 195.7 195.7 11.20% 90.37% Pinghe Development Co. Ltd Runoff 6,328 Drip 31.64 33.31 352.0 352.0 9.46% 91.01% Runoff 12,691 Drip 41.25 43.42 352.0 352.0 12.33% 88.28% Runoff 3,210 Sprinkler 16.05 17.83 283.5 283.5 6.29% 94.34% Fujian Hongsheng Runoff 1,756 Sprinkler 8.78 9.76 105.3 105.3 9.26% 91.66% Hua'an Gardening Co. Ltd Runoff 1,756 Sprinkler 8.78 9.76 105.3 38.6 25.26% 77.27% Groundwater 427 Piped- 2.56 2.70 7.3 96.1 2.81% Runoff 4,200 Piped- 21.00 22.11 210.4 210.4 10.51% 90.02% Fujian Farms Runoff 2,000 Piped- 10.00 10.53 240.4 240.4 4.38% 95.84% Fu'an Agribusiness Tea Co., Ltd Runoff 2,300 Piped- 11.50 12.11 270.5 270.5 4.48% 95.75% Runoff 500 Sprinkler 2.50 2.91 270.5 89.2 3.26% 97.20% Fujian Lvyin Agriculture Runoff 1,960 Piped 11.76 13.67 109.0 109.0 12.54% 89.21% Jiaocheng Co., Ltd Runoff 2,500 Sprinkler 15.00 16.67 122.7 122.7 13.59% 87.77% Ningde Qilongxiang Runoff 4,000 Piped 24.00 27.91 180.5 180.5 15.46% 86.70% Dongqiao Agriculture Co. Ltd Runoff 2,000 Piped 12.00 13.95 231.6 231.6 6.02% 94.82% Stream 500 Furrow 22.40 32.00 78.4 78.4 40.79% Fujian Jianye Runoff 2,560 Sprinkler 8.29 9.22 190.5 190.5 4.84% 95.65% Agro-forestry Zherong Runoff 640 Piped 2.07 2.30 130.7 130.7 1.76% 98.41% Comprehensive Investment Co. Ltd Runoff 6,100 Piped 19.76 22.98 265.2 265.2 8.67% 92.55% Runoff 5,400 Piped 17.50 20.34 223.4 223.4 9.11% 92.17% Source: PPTA Team (DFR Appendix 1) * Runoff not intercepted for irrigation plus return irrigation at 40% irrigation efficiency (assuming 10-20% loss to evaporation and 20% loss to deep soil percolation).

Use of Agricultural Chemicals

186. Project initiatives will achieve lower rates of agricultural chemical application in subprojects. Through its emphasis on the use of organic fertilizer and integrated pest management (combining proper management of chemicals with non-chemical measures) the project will target reductions in chemical use per unit area of cultivation.

187. Fertilizer. All subprojects will at least partially subsitite chemical fertilizers with organic fertilizer. This will be achieved through soil testing and matching crop needs to fertilizer recommendations. Organic fertilizer does not contain inorganic ions such as sulfate and chloride which can act to weaken soil structure, nor cadmium and fluoride which tend to accumulate in soil and ultimately affect plant growth. Nitrogen and phosphorus in organic fertilizers are slow release compared with chemical fertilizer and tend not to be leached away by rain storms after application. In addition, the high organic matter levels in organic fertilizers act to aerate the soils and maintain soil structure and wetting capacity. In total the subprojects plan to use about 104,440 tons of organic fertilizer per year which will replace the use of 15,110 tons of chemical fertilizer (Table VI.8).

Table VI.8: Planned Organic Fertilizer Use and Chemical Fertilizer Replaced Planned organic Replaced Type and area of involved fertilizer chemical Project Implementing Unit land (mu) application fertilizer (ton/year) (ton/year) Rice 10,000 2500 222 Wuyishan Zhuzi Ecological Lotus 3,000 1200 84 Agriculture Co., Ltd Tea garden 2,000 600 18 Organic rice 361 108.3 6 Fujian Zhengyuan Ecological Organic tea garden 2,008 2008 191 Food Town Co., Ltd Green tea garden 4,649 3719.2 442 Fujian Datian County Golden Tea garden 30,000 5400 900 Phoenix Agricultural Oil-tea camellia garden 20,000 2000 -640 Development Co., Ltd Lowland farmland 18,000 2700 -342 Youxi County Yangzhong Xinkaicheng Urban Construction Oil-tea camellia garden 10,198 3059.4 684 Co., Ltd Youxi County Shenlang Edible Nursery seedling base 14.5 43.5 -2 Oil Co., Ltd Oil-tea camellia garden 8,018 2405.4 538 Ninghua State-owned Ecological Oil-tea camellia garden 26,500 9275 265 Forestry Co., Ltd Fujian Ninghua County Ninghua Science and Technology Co., Oil-tea camellia garden 2,394 837.9 24 Ltd Fujian Chunhui Tea Co., Ltd Tea garden 3,454 1105.28 24 Fujian Cuiyun Tea Co., Ltd Tea garden 2,499 799.68 578 Fujian Jinxi Tea Co., Ltd Tea garden 3,700 1184 888 Organic oil-tea camellia 3,100 2046 0 Fujian Houde Agro-forestry garden Ecological Co., Ltd Green oil-tea camellia 6,500 3575 0 garden Tea garden 3,592 538.8 0 Oil-tea camellia garden 5,565 751.3 0 Longyu Ecological Industry Pasture 4,140 3726 911 Development Co. Ltd Farmland 8,395 6548.1 1595 Nursery seedling base 10 8 -2 Vegetable base 598 478.4 -96 Longyan Greenland Ecological Tea garden 1,200 1200 84 Agriculture Development Co. Ltd Oil-tea camellia garden 1,820 1820 91

Planned organic Replaced Type and area of involved fertilizer chemical Project Implementing Unit land (mu) application fertilizer (ton/year) (ton/year) Rice 12,008 3602.4 180 Ratoon rice 2,000 1000 0 Pearl barley 2,690 2690 269 Vegetable base 2,064 2064 516 Green tea garden 3,528 1058.4 903 Organic tea garden 2,635 3952.5 988 Fujian Xinghe Investment Green Pomelo garden 3,189 3189 1642 Development Co. Ltd Organic Pomelo 4,463 13389 3347 garden Tea garden 3,263 1305.2 98 Fujian Hongsheng Gardening Oil-tea camellia garden 1,786 625.1 18 Co. Ltd Nursery seedling base 427 640.5 -15 Nursery seedling base 500 750 -18 Fujian Farms Agribusiness Tea Organic tea garden 4,200 3150 315 Co., Ltd Tea garden 3,800 2280 95 Fujian Lvyin Agriculture Co., Ltd Oil-tea camellia garden 4,460 892 67 Fujian Jianye Agro-forestry Tea garden 3,200 640 32 Comprehensive Investment Co. Oil-tea camellia garden 11,500 2300 173 Ltd Farmland reclaimation 500 75 -24 Ningde Qilongxiang Agriculture Tea garden 6,000 1200 61 Co. Ltd Total 104440.36 15111

188. The recently released Action Plan for Reaching Zero Growth of Fertilizer and Pesticide Application till 202023 emphasized that in Fujian Province fertilization principles should promote the use of straw mulch; increased application of organic fertilizer; green manure crop planting during the winter fallow period; and combined fertilization techniques and simplified cultivation technologies.The project design includes the implementation of all of these techniques and initiatives. The project will also establish a pilot for water and fertilizer integration technology (to increase fertilizer use efficiency) in Fu’an County (SOE).

189. Pesticides. The project aims to reduce the use of pesticides, although some pesticide use will still be required, either to address pest issues which cannot be solved through organic approaches and/or while the other project approaches and practices (below) are being established. The Fujian Department of Agriculture has promulgated a comprehensive list of diseases and pests of project enterprises along with recommended pesticides and application methods (Attachment 4). These pesticides and application rates comply with the PRC’s Action Plan for Reaching Zero Growth of Fertilizer and Pesticide Application till 2020 and are designed to target and reduce pesticide usage. However, three of the chemicals on the provincial list (omethoate, triazophos and dichlorvos) are listed as ‘highly hazardous’ by the World Health Organization. These are excluded from use in the project (see also project assurances). None of the other pesticides in the provincial plan are restricted or prohibited by the PRC Government, the Rotterdam Convention, or the World Health Organization, and therefore comply with ADB’s Prohibited Investment Activities List.

190. Specific quantities or application rates for pesticide use are not available for the project sites, however, based on pesticide application rates in the PRC’s Action Plan for Reaching Zero Growth of Fertilizer and Pesticide Application till 2020 and existing agricultural practices in the project counties, a reduction in pesticide application of 5% per mu is anticipated. Measures for reducing pesticide use promoted by the action plan comprise:

23 Released by MOA on 17 February 2015.

65 selection of seedlings with disease and insect resistance, introduction of nursery stock quarantine, cultivation measures to improve plant resistance to disease and insect pests including removal of diseased plants, pest capture on a population scale using light traps and sticky traps at high density at crops’ insect-prone periods. The project will instigate a monitoring and control program for pesticide use in the subprojects by maintaining an inventory of all pesticides bought and applied in the subproject sites. This would include, for each PIU, the name of the pesticide, quantity used and application rate, the pest or disease targeted.

191. The pesticide monitoring and control program requirement is included in the EMP and the results will be included in the PMO’s reports to the ADB. Overall, reductions in the rate of application of agricultural chemicals per unit area, especially fertilizers, will decrease the non point source pollution load entering the county waterways and contribute to improved water quality.

192. To ensure that project initiatives in the management of agricultural chemicals are not jeopardized by uncontrolled chemical use on neighbouring, non-project enterprises, non-project farmers will be included in the project training programs on IPM and organic fertilizer use.

Other operational impacts

193. Other potential impacts in the operational phase of subprojects are: solid waste management; erosion during crop farming; in-stream weir operation, and; shelterbelt establishment.

194. Solid Waste. Solid waste generated during operations will include agricultural plastic film and the packaging of fertilizers and pesticides. For plastic film, the residue left in the soil will affect the decomposition of soil humus and the air and water permeability of soil, resulting in soil structure damage, and low water retention and fertilizer conservation. Film residue also hinders seed germination, root growth and crop development, as well as affecting normal nutrient absorption of crops resulting in poor fertilizer use efficiency. For fertilizers, based on observations during the PPTA period, most of the packaging for fertilizers can be recycled by farmer households, or subproject enterprises. The following measures will be implemented:

 For the plastic film, mitigation measures are: (i) film mulching practices which optimize the timing of mulching and timely removal of film to shorten the mulching period; (ii) use of biodegradable polymers for agricultural plastic film such as aliphatic polyesters and aliphatic co-polyesters; and (iii) increased efforts to improve agricultural plastic film recovery and recycling.

 For pesticide packaging, mitigation measures are: (i) training will be conducted for farmers on chemical packaging handling and recycling. The training will be conducted by technical officers of the Fujian Agriculture Department and County Agriculture Bureaus. Packaging inventory systems training will be undertaken by the loan implementation environmental consultant (LIEC); and (ii) the PIUs will record all the utilization of pesticide, and require staff and farmers to return the empty packages to the PIU.

195. Overall, risks associated with the production and disposal of solid waste are small. In all townships, established litter collection processes and transport systems to nearby landfills are already in place. Volumes of waste produced during construction and operation will be small and manageable because: (i) project activities are spread across 19 counties; (ii) the nature of the project does not generate large or diverse volumes of waste; and (iii) the main waste products to be generated, plastic mulch and/or packaging for agricultural chemicals,

66 will be minimized through the use of biodegradable plastics, improved mulching (to reduce the need for plastic film), reduced chemical application, recycling of the fertilizer bags, and, inventorying and control of the pesticide packaging, as described above.

196. Erosion during crop and plantation management. Crop maintenance, inter-row cultivation and tillage practices on sloping lands have the potential to cause erosion. To prevent soil erosion of tea and tea-oil plantations during the production periods, the following measures will be taken.

(i) On the steeper slopes, inclined terraces (higher elevation at the outside of the terrace than on the inside) will be constructed, and, equipped with bamboo-joint ditches on the lower edge inside the terrace to harvest runoff and collect eroded soil materials.24 (ii) At the lower elevation part of the tea gardens, interception dam and rainwater harvest ponds will be maintained to store this rainwater for irrigation and to store sediments eroded from the tea gardens. (iii) On the more gentle slopes, erosion will be prevented by planting on the contour with protective ridges. (iv) As with the terraces, grassed waterways are used to channel runoff water into collector structures (ponds or concrete tanks).

197. The outer edge of the terraces are the parts most susceptible to erosion, especially during the period of early growth of the tea garden. Grasses of cash crops will be grown for soil and water conservation. After crop harvesting, a protective layer of stubble or other plant residues will remain. During the first seasons after planting, a biological crust (moss and lichen) forms, which together with the natural growth of grasses, will further reduce soil erosion. Soil surfaces under the tea trees will be mulched with rice straw or organic fertilizer depending on its composition and availability of straw. This mulch protects the soil surface against raindrop impacts and the increased soil organic matter will improve and stabilize the soil structure.

198. Farm tracks. The approximately 692 km of farm tracks to be constructed (Section IV) may result in soil erosion, including due to increasing slope gradients on cut-and-fill slopes, where subsurface water flow is intercepted, overland flow across the bare surfaces, and damage from vehicle activity. Impacts are expected to be small given the small size of individual tracks, their location among stabilized (cropped and/or terraced) surfaces, and that corners and culverts will be sealed.

199. In-stream weirs. The Datian Golden Phoenix subproject will rehabilitate three existing in-stream weirs to provide collection points for water extraction, for the irrigation of valley floor cultivation. The Guangze Zhengyuan and Zherong subprojects will each rehabilitate an in-stream weir to provide irrigation for organic rice cultivation on valley floor paddy. No threatened or endangered fish species have been documented in the subject waterbodies. The movements of fish and other aquatic organisms is provided for by by regularly spaced open “gates” in the weir structure, which allow free water flow (Figure VI.1).

24 The project terracing (unlike paddy or vegetable terraces) refers to single rows of plants, which are drained, vegetated and stabilized (see Figure IV.2 and IV.4).

Figure VI.1: In-stream Weir Cross-section and Photo Showing Design Water Flow Gates Figure source: FSR and site visit photo by PPTA team.

200. Shelterbelt forests. Eleven of the 13 county subprojects include the planting of shelterbelt forests to protect tea and tea-oil plantations on exposed slopes from damaging winds and from drying out. The mandatory use of native (indigenous) species for these forests will augment the habitat values of retained regrowth forest in the localities and will contribute to local biodiversity by providing habitats and wildlife corridors.

F. Community Health and Safety

201. The PIUs and construction contractors for the subprojects will prepare and include an environmental health and safety management plans, as part of their Site Management Plans, as required by the EMP. Contractor performance and activities for occupational health and safety shall be incorporated in their monthly progress reports.

202. The safety and health of both workers and nearby residents may be threatened by construction activities, especially during earthworks and the operation of machinery on sloping land. Surrounding residents may also be affected by noise and dust. During operation staff and laborers on the farms will be subject to health and safety issues in their day-to-day work.

 Mitigation measures in the EMP to protect the community are as follows.

(i) Planning construction activities so as to minimize disturbances to residents, utilities and services. Temporary land occupation will be planned ahead of construction to minimize its impact. Any land temporarily occupied will be reinstated to its original condition after construction. (ii) Implementing safety measures around the construction sites to protect the public, including warning signs to alert the public to potential safety hazards, and barriers to prevent public access to construction sites. (iii) Negotiating haulage truck and machinery movements with village committees to ensure that village activities (market days etc) and residential roads are minimally impacted by construction traffic.

 Mitigation measures in the EMP to ensure worker occupational health and safety are as follows.

(i) PIUs and contractors shall be required by the CPMOs to ensure that their workers and other staff engaged in the proposed constructions are in a safe environment. (ii) The PIU, in conjunction with their contractors will prepare site environmental health and safety plans for each subproject, for approval by the CPMOs. The site environmental health and safety plans will be in full compliance with the Labour Law

of the PRC25, the Labor Contract Law of the PRC, and the Special Rules on the Labor Protection of Female Employee.s26 (iii) Contractors shall ensure that: (a) all reasonable steps are taken to protect any person on the site from health and safety risks; (b) the construction site is a safe and healthy workplace; (c) machineries and equipment are safe; (d) adequate training or instruction for occupational health and safety is provided, especially for new workers; (e) adequate supervision of safe work systems is implemented; and (f) means of access to and egress from the site are without risk to health and safety. (iv) In the operations phase of the project, workers and other staff will be issued with protective gear appropriate to their tasks. (v) All electrical connections in the subprojects will be completed and periodically checked by qualified electricians. (vi) The openings of all water storage tanks at ground level will be fenced and gated to prevent accidents. (vii) The PIUs and contractors will apply strict health and safety protocols for staff in the handling, application and clean-up of agricultural chemicals. These protocols will be in full compliance with the PRC Regulations on Safe Management of Hazardous Chemicals (Decree 591) issued by the State Council on 11 March 2011.

G. Climate Change

203. Potential environmental impacts were assessed of: (i) the effects of project greenhouse gas emissions (GHGs) on the climate; and (ii) the effects of climate change on the project.

1. Greenhouse Gas Emissions

204. GHG emissions from the project will occur from two sources: (i) emissions from agricultural activities, in particular from rice paddy flooding and cultivation, and, to a lesser degree, GHGs produced by tea gardens; and (ii) emissions from energy use (electricity) in the operation of facilities, including irrigation infrastructure.

205. Valley floor components. GHG emissions for the valley floor components of the project, comprising rice, cereal, vegetables and pasture, were calculated using the models provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (Table VI.10). Total GHG emissions for the project valley floor components are about 62,500 tons CO2e/year.

206. Tea and tea-oil components. The IPPC Greenhouse Gas Inventories do not provide calculators for tea plantations. To estimate GHG emissions for the tea and tea-oil components, the results of carbon footprinting studies for Darjeeling tea production in India, which is grown under similar conditions, climate, and elevations,27 were applied (Table VI.9).

Table VI.9: GHG Emissions from Individual Processes in Cradle-to-Gate Phases Organic Farming GHG Conventional Farming Inputs in tea and tea-oil cropping (kg CO2e/kg tea) GHG (kg CO2e/kg tea) Growth 3.0 6.5 Fertilizer and application 3.3 9.6 Fertilizer induced N2O emissions 1.9 1.9 Pesticides 3.3 9.2 Source: Cichorowski et al. 2015. Scenario analysis of life cycle greenhouse gas emissions of Darjeeling tea. Int J.

25 http://www.24en.com/translate/guide/duizhao/2008-03-18/72618.html 26 http://www.lawinfochina.com/display.aspx?lib=law&id=9336&CGid=# 27 Cichorowski et al. 2015. Scenario analysis of life cycle greenhouse gas emissions of Darjeeling tea. Int J. Life Cycle Assessment 20: 426-439.

Life Cycle Assessment 20: 426-439

207. It was concluded that the best combination of emission factors were using the growth emissions for conventional (mechanized) cultivation, with the fertilizer and pesticide factors for organic practice. This gives a total of 15.0 kg CO2e/kg tea. Since 4 kg of raw tea pickings are needed for 1 kg of tea and with an average local yield of 300 kg/ha, this equates to an emission factor of 1,125 kg CO2e/ha. The total emissions for the subprojects (with 183,000 mu of tea and tea-oil) are therefore 14,380 tons CO2e/year.

Table VI.10: Estimates of GHG Emissions for Valley floor Components of the Project Nitrogen Organic Organic GHG Project Unit Chemical Type and area of Production fertilizer fertilizer fertilizer emission Implementing production fertilizer involved land (ton) application (kg/mu (ton / ha (0'000 Unit (ton/mu) (ton/mu) (ton N/ha) /year) / year) tons) Wuyishan Zhuzi Rice 10000 0.48 4800 0.071 0.244 200 3.000 0.6 Ecological Agriculture Co., Lotus 3000 0.8 2400 0.080 1.864 200 1.5 0.59 Ltd Fujian Zhengyuan Green rice 361 0.5 180.5 0.045 0.070 300 4.500 0.02 Ecological Food Town Co., Ltd Fujian Datian Se-enriched 18000 0.5 9000 0.070 0.286 150 2.250 1.4 County Golden rice Phoenix Agricultural Vegetable 18000 1.3 23400 0.000 0.000 150 2.250 0.11 Development cultivation Co., Ltd Pasture 4140 5 20700 0.07 0.315 1500 22.500 0.25 Longyu Rice 8395 0.5 4197.5 0.068 0.306 100 1.500 0.67 Ecological Potato 8395 2 16790 0.02 0.090 600 9.000 0.13 Industry Oilseed rape 8395 0.072 604 0.22 0.990 80 1.200 1.1 Development Vegetable Co. Ltd 598 3 1794 0.02 0.286 450 6.750 0.03 base Longyan Rice 12008 0.5 6004 0.04 0.080 300 4.500 0.61 Greenland Ratoon rice 2000 0.36 720 0.045 0.019 500 7.500 0.08 Ecological Perl barley 2690 0.225 605.25 0.015 0.070 1000 15.000 0.03 Agriculture Vegetable Development 2064 6 12384 0.05 0.225 1000 15.000 0.12 Co. Ltd base Fujian Jianye Agro-forestry Farmland Comprehensive 500 0.4 200 0.0488 0.159 150 2.250 0.51 reclaimation Investment Co. Ltd Estimates made using the IPCC National Greenhouse Gas Inventories Calculator.

208. Power consumption. Both the valley floor and slopeland crops in the project will be irrigated, and the irrigation infrastructure is driven by electrical pumps. In order to gain a complete estimate of total GHGs, the total predicted annual power consumption of the subprojects is required. However, the design institutes and PIUs were unable to provide information on projected power usage or the employment of pumps on sites. As an alternative, the PPTA team has estimated power usage and greenhouse gas emissions using the following assumptions:

(i) Total irrigation water delivered per year (all subprojects) = 64,800,000 m3. (ii) Average distance water is pumped 80-100m. (iii) Multiple small to medium pumps used in the power range 15-30 kW each. (iv) Power to move 1,000,000 m3 of water 80-100m using multiple small to medium pumps is estimated at 30,800 kWh.

(v) Conversion factor of power generation in the PRC grid to greenhouse gas emissions is 0.65 kg CO2e/kWh.

209. On the basis of these assumptions, total annual electricity consumption to achieve the annual irrigation requirements for the entire project is estimated at just below 2,000,000 Kwh. GHG emissions for this amount are about 1,300 tons CO2e per year.

210. The total CO2e emissions generated by the project, from both direct and indirect sources, will be about 78,180 tons/annum. This is below the 100,000 tons/year threshold in ADB’s SPS for significant emissions. Carbon sequestration, especially in the tea tree and tea-oil plantations, will further reduce net emissions.

2. Climate Risk and Vulnerability Assessment

211. This section summarizes the results of the project climate risk and vulnerability assessment (CRVA). Trends in the climate of Fujian were analysed from data published by the Fujian Meteorological Bureau for a 52 year period from 1961 to 2013. Future climate scenarios were identified based on previous simulations conducted by the National Climate Center using the International Centre for Theoretical Physics (ICTP) Regional Climate Model version 3 (RegCM3) in high resolution, and the Intergovernmental Panel on Climate Change Special Report on Emissions Scenarios (IPCC SRES) (and subsequently published in the Chinese Science Bulletin 57 (10), 2012; and Chinese Journal of Geophysics 55(5), 2012). The method derives future climate predictions for the world and individual countries according to four “scenario families” which provide different socio-political settings. These are A1, A2, B1 and B2. A and B represent the extremes of ideological focus from economics-driven (A) to environmentally-driven (B) decision making. Scenarios 1 and 2 represent the degree to which these countries and regions act in unison (1) or as individuals (2).

212. Current trends in the climate. Since 1961, the annual average temperature in Fujian Province has risen by 1℃ (Figure VI.2) and is especially pronounced in mean winter temperatures (Figure VI.3). The days of maximum extreme temperature have increased and the days of minimum extreme temperature have decreased.

Source: Meteorological Bureau of Fujian, 2015 Figure VI.2: Variation in annual average temperature 1961-2013.

Source: Lin and Qiu, 2014 Figure VI.3: Variations of mean winter temperature in Fujian during 1971—2013

213. Over the same period, the annual average precipitation increased slightly, and days of rainfall decreased (Figure VI.4). However, the days when storms occur have increased, especially in the rainy season. The frequency and intensity of extreme events has also increased, with destructive typhoons becoming much more frequent (e.g. recent events in 2005, 2006, 2008 and 2010).

Source: Meteorological Bureau of Fujian, 2015 Figure VI.4: Variations of yearly mean precipitation in Fujian during 1961—2013

214. Droughts most frequently occur in Fujian Province in summer and autum. Spring droughts most commonly occurred between 1937 and 1950, summer droughts in the 1950s and 1960s and autumn and winter droughts both in the period of 1937-1950 and in 1964-1970 (Table VI.11). Generally, the drought occurrences have shown a long term decreasing trend, but its seasonal variability is the main cause of impacts to cropping.

Table V1.11: Occurrences of Droughts in Fujian Province, 1939-1995 Year 1937-1950 1951-1960 1964-1970 1971-1980 1981-1995 Total Spring drought 7 (41.2) 3(17.6) 3(17.6) 4(23.5) 0(0) 17(100) Summer drought 1(4.5) 6(27.2) 7(31.8) 4(18.2) 4(18.2) 22(100) Autumn and winter drought 5(26.3) 3(15.8) 5(26.3) 2(10.5) 4(21.1) 19(100) Source: Lu and Wang, 201228. Numbers in brackets are %.

215. Projected climate change—temperature. The future climate will continue to warm. The regional model RegCM3 predicts that under IPCC SRES A1, B1 and A2 scenarios for 2050, the average temperature in the future in Fujian Province will increase at a rate of 0.516 oC /decade and 0.342 oC /decade under B1 and A1B scenarios respectively. The increased trend of the average temperature under the A2 scenario is 0.215 oC /decade, and is not

28 Lu, S.J. and Wang Y. 2012. The Climate of Fujian. Meteorological Press.

72 significant. With the increase in temperature, growing periods have lengthened. The northern boundary of the tropic climate zone has moved northwards and the cropping of some tropical crops is becoming possible. The growing period of rice has also been prolonged by 6-11 days.

216. Projected climate change—precipitation. The projected result for precipitation shows that the yearly average precipitation in Fujian Province under B1 and A1B scenarios will decrease, with an average rate of 3.58 mm/year and 6.47 mm/year respectively, while it will increase under the A2 scenario with the rate of 8.05 mm/year. These widely differing future rainfall scenarios make agricultural planning difficult, but highlight the need for conservative estimates or runoff and reservoir recharge, as well as designing larger than average drainage structures.

217. For the short to medium term, the A2 scenario is likely to be more relevant than others, since it describes the current way that most countries and regions, including the PRC, are approaching climate change issues. Predictions of minimal rise in temperatures and significant increases in rainfall under the A2 scenario will place little adaptation pressure on the agricultural enterprises of the project.

218. The predicted changes for Fujian as a result of climate change are that the average temperature in the future will increase at a rate of between 0.516 oC /decade and 0.342 oC/decade and that the yearly average precipitation will decrease with an average rate of between 3.58 mm/year and 6.47 mm/year. These predictions for both temperature and rainfall are for B1 and A1B scenarios respectively and represent the most significant predicted changes.

219. The subproject components most vulnerable to increases in temperature and decreases in rainfall are irrigated crops, the main focus of the project. Drought in the spring is one of the important factors affected the growth and yield of tea. Drought in other seasons affects the fruiting stages of pomelo and grain crops. Key vulnerabilities are from:

(i) Water stress and higher water demand from crops due to higher temperatures. (ii) Low water availability for rain-fed crops and low water availability for irrigation from site catchments and local waterbodies due to lower rainfall. (iii) The increased incidence of crop diseases and insect pests due to warmer conditions.

220. These potential impacts are offset to some extent by the potential benefits of overall rising temperatures, which will result in warmer summers and milder winters. These are expected to increase the growing period for rice by 6-11 days and result in higher crop productivity, and provide increased opportunities for intercropping of legumes during winter with summer rice.

221. Project water demand and supply. Increased crop water demands and the seasonality and intensity of rainfall will need to be addressed in the sustainability of planned irrigation systems in the subprojects. Project water demand and supply was calculated assuming a conservative rainfall/runoff exceedence value of P=90%, the equivalent of a very dry year with a return frequency of 1 in 10 years, and was based on 50 years of rainfall data. The results show that planned use of water resources by the project was sustainable, especially due to the widespread harvesting of site runoff water. An additional two-way sensitivity analysis was undertaken on the project water demand and supply (Table VI.12). The input data were as follows:

i. Target year = 2035 ii. Reduction in average rainfall = 130 mm (6.47 mm per year for 20 years)

iii. Increase in average temperature = 1 oC (0.516 oC per decade for 2 decades) expressed as a 5% decrease in the irrigation utilization coefficient.

222. The results (Table VI.12) indicate that even under a worst-case scenario, use of water resources in the climate change scenario for 2035 only represents an increase of 1-3% in the ratio of demand to supply per site. The ratio of extraction from streams to supply increases by similar amounts. Planned water use to at least 2035 is therefore indicated to be sustainable.

Table VI.12: Water Demand and Water Supply Sensitivity Analysis 2015 2035 Project implementing % of % unused % of % unused County Water source unit demand runoff to demand runoff to to supply stream* to supply stream* Runoff, stream 11.35% 12.73% Fujian Zhengyuan Runoff 8.90% 91.54% 9.98% 90.52% Guangze Ecological Food Town Runoff 29.81% 73.17% 33.44% 69.91% Co., Ltd Stream 10.98% 92.10% 12.31% 91.14% Wuyishan Zhuzi Stream, reservoir 8.91% 10.10% Wuyishan Ecological Agriculture Stream NA NA NA NA Co., Ltd Youxi County Yangzhong Runoff 3.86% 96.68% 4.47% 96.15% Xinkaicheng Urban Youxi Construction Co., Ltd 1.01% 99.09% 1.18% 98.94% Youxi County Shenlang Runoff 3.97% 96.59% 4.60% 96.04% Edible Oil Co., Ltd Runoff, stream 0.01% 0.01% Ninghua State-owned 16.67% 85.66% 19.16% 83.52% Ecological Forestry Runoff 4.84% 95.40% 5.56% 94.72% Co., Ltd Fujian Ninghua County Runoff 3.04% 97.38% 3.50% 96.99% Ninghua Science and Runoff 2.42% 97.70% 2.78% 97.36% Technology Co., Ltd Fujian Chunhui Tea 3.12% 97.19% 3.59% 96.77% Runoff Ninghua Co., Ltd 16.24% 86.03% 18.67% 83.95% Fujian Cuiyun Tea Co., Runoff 4.45% 96.22% 5.12% 95.65% Ltd Runoff 7.61% 92.77% 8.75% 91.69% Fujian Jinxi Tea Co., Runoff 12.15% 89.07% 13.97% 87.43% Ltd Runoff 5.08% 95.63% 5.83% 94.98% Fujian Houde Agro-forestry Runoff 8.39% 92.79% 9.64% 91.71% Ecological Co., Ltd Runoff 1.73% 98.51% 2.02% 98.26% Fujian Datian County Runoff 1.71% 98.53% 2.00% 98.28% Golden Phoenix Runoff 1.26% 98.87% 1.47% 98.68% Dantian Agricultural Runoff 2.20% 98.11% 2.57% 97.79% Development Co., Ltd Runoff 1.11% 99.00% 1.29% 98.84% Runoff, stream 39.77% 46.49% Stream Stream Longyu Ecological 18.94% 22.12% Stream Yongding Industry Development Stream Co. Ltd Runoff 3.05% 97.38% 3.56% 96.94% Runoff 0.50% 99.55% 0.59% 99.47% Runoff, stream Runoff, stream Runoff, stream 15.74% 17.85% Longyan Greenland Runoff, stream Xinluo Ecological Agriculture Runoff, stream Development Co. Ltd Runoff 10.83% 90.69% 12.28% 89.44% Runoff 6.33% 94.55% 7.18% 93.83% Runoff 0.71% 99.36% 0.81% 99.27% Pinghe Fujian Xinghe Runoff 21.73% 81.31% 24.65% 78.80%

2015 2035 Project implementing % of % unused % of % unused County Water source unit demand runoff to demand runoff to to supply stream* to supply stream* Investment Runoff 11.20% 90.37% 12.70% 89.08% Development Co. Ltd Runoff 9.46% 91.01% 10.73% 89.81% Runoff 12.33% 88.28% 13.99% 86.71% Runoff 6.29% 94.34% 7.05% 93.65% Fujian Hongsheng Runoff 9.26% 91.66% 10.39% 90.65% Hua'an Gardening Co. Ltd Runoff 25.26% 77.27% 28.33% 74.51% Groundwater 2.81% 2.81% Runoff 10.51% 90.02% 12.01% 88.59% Fujian Farms Runoff 4.38% 95.84% 5.00% 95.25% Fu'an Agribusiness Tea Co., Runoff 4.48% 95.75% 5.11% 95.14% Ltd Runoff 3.26% 97.20% 3.73% 96.80% Fujian Lvyin Agriculture Runoff 12.54% 89.21% 14.22% 87.77% Jiaocheng Co., Ltd Runoff 13.59% 87.77% 15.41% 86.13% Ningde Qilongxiang Runoff 15.46% 86.70% 16.93% 85.44% Dongqiao Agriculture Co. Ltd Runoff 6.02% 94.82% 6.83% 94.12% Stream 40.79% 45.73% Fujian Jianye Runoff 4.84% 95.65% 5.42% 95.12% Agro-forestry Zherong Runoff 1.76% 98.41% 1.98% 98.22% Comprehensive Runoff 8.67% 92.55% 9.71% 91.65% Investment Co. Ltd Runoff 9.11% 92.17% 10.21% 91.22% Source: PPTA team. *Runoff not intercepted for irrigation plus return irrigation at 40% irrigation efficiency (assuming 20% loss to evaporation and 20% loss to deep soil percolation). NA=not applicable (“unused runoff to stream” only applies to site runoff).

223. Adaptation to future climate change. The CRVA and water balances and sensitivity analyses show that the planned irrigation systems are sufficiently robust to cope with the changes in temperature and rainfall predicted for the area under A1 and B1 climate change scenarios (the A2 scenario predicts an increase in rainfall). However, the seasonality of rainfall makes it both prudent and necessary to develop and promote water-saving awareness and techniques to minimize the effects of seasonal droughts. The project designs include the following adaptation measures.

(i) Use of improved strains and varieties of crops, which are adapted to the local climatic and soil conditions of the project area. Available new varieties for rice, tea and oil tea suitable for different regions in Fujian Province have been identified by Fujian Provincial Agricultural Department and their use promoted (Fujian Provincial Agricultural Department, 201429).These varieties have better disease and drought resistance and will be employed in the establishment of new crops in all subprojects.

(ii) Significant on-farm water storage capacity to buffer the effects of seasonal drought for all subprojects, including covered water storage to minimize evaporative loss.

(iii) Irrigation technologies comprise sprinkle and trickle (drip) irrigation which allow real time control of water application.

(iv) Mulching by cover crops, such as forage grass and leguminous forage will be employed in tea and oil tea gardens to conserve soil moisture. Green manure cropping and mulching helps control soil erosion, and increases carbon sequestration on farms.

(v) The establishment of shelterbelts of trees around tea and tea-oil plantations will protect the crops from drying out and contribute to water savings. The establishment

29 Agricultural Bureau of Fujian Province, 2014. The new handbook of five new agricultural technologies.

of integrated windbreaks and tea and oil tea garden will also contribute to on-farm carbon sequestration.

H. Indirect, induced, and cumulative Impacts

224. Indirect impacts are adverse and/or beneficial environmental impacts which cannot be immediately traced to a project activity but can be causally linked. Induced impacts are adverse and/or beneficial impacts on areas and communities from unintended but predictable developments caused by a project which may occur later or at a different location. Cumulative impacts are the combination of multiple impacts from existing projects, the proposed project, and anticipated future projects that may result in significant adverse and/or beneficial impacts that would not be expected in case of a stand-alone project.30

225. Indirect impacts. A potential indirect risk is that the hydrology of streams downstream of the project sites is negatively affected, due to water extraction and interception of runoff for the project. This risk is considered minimal because: (i) water demand and supply analysis has confirmed that water extraction represents only 8–12% of the total capacity of the watercourses; (ii) the majority of subprojects (including all of the slopeland subprojects) will source their water needs from overland flow, which captures only a small proportion of rainwater; and (iii) the improved water storage capacity to be achieved by the project will reduce extraction pressures on local water resources in the dry season.

226. Induced impacts. A potential induced impact is that the establishment of infrastructure and capacity achieved by the project will result in scaling up of commercial activities after the project by the project enterprises, including increases in workers, further land intensification, and/or subsequent pressures on public utilities (e.g. roads and water and electricity easements). These risks are considered small due to: (i) the physical limits imposed by the boundaries of each subproject and/or topography; (ii) restrictions imposed by existing land planning and zonation; and (iii) the growing requirements for high-quality tea and tea-oil, which require separation between plants and which limits cropping intensification. A beneficial induced impact may be the increase in demand for organic fertilizer, strengthening the viability of the industry and reducing demand for chemical-based fertilizers.

227. Cumulative benefits. No new land will be taken up for agriculture under the project. Instead, existing agricultural lands will be improved or, in the case of abandonded cultivation, rehabilitated. Approximately 27% of the existing valley floor cultivation areas in the project villages will be rehabilitated and 11% of the existing tea and tea-oil plantations and abandoned terraces in the project villages will be rehabilitated. There will be no encroachment on naturally vegetated lands, and farm machinery farm tracks are designed to form only internal farm networks and not provide access for the exploitation of forest lands.

228. Water resources of the project area fall within five major river systems (the Jiaxi, Minjiang, Jiulongjiang and the Tingjiang systems). The cumulative annual use of water resources by the project is 6.46x106 m3, which is 0.067% of the total resource of these river systems.

229. Cumulatively, the project will reduce the amount of chemical fertilizer used on subproject lands by approximately 15,110 tons per year, by replacing it with organic fertilizer. In 2013, total annual fertilizer application in Fujian Province was 4,13 million tons, and average application of 25.9 kg/mu (4 kg/mu higher than the national average). While this reduction only represents 0.4% of Fujian’s total chemical fertilizer use, it is important in the context of the state target of Fujian Province for zero growth in the use of chemical fertilizers by 2020.

30 ADB. 2011. Sourcebook for Safeguard Requirement 1: Environment. Manila.

VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

230. To identify key environmental issues and sensitive sites, all counties/districts of the project sites were visited. Consultation meetings were held with local authorities and potential affected people. Key findings such as farmer's willingness, environmental sensitive sites to be addressed, and suggestion from local government authorities were reviewed with the design institutes to revise the design and address environmental issues.

A. First Round Consultations

231. The first round of formal community meetings was held in April 2015 and was undertaken by the PPTA team. Public consultation meetings were held at the subproject sites or in nearby village committee offices.

232. Information disclosure. The meetings included information dissemination about the project, explaining the planned developments which would be undertaken for each local subproject, timetables, status and constraints of the surrounding environment, and potential impacts and mitigation measures. Presentations were made at community meetings using powerpoint presentations, with photographs, diagrams and maps.

233. Consultation. At these meetings a questionnaire was circulated to document community views and concerns. In total the public consultation involved 41 villages in 13 project counties, and elicited responses from 610 participants (Table VII.1) on issues of concern (Table VII.2). Of the 610 responses, 20.49% (125) were from poor households and 38.03% (232) were from female respondents.

Table VII.1: Public Consultation Participants Project County Public consultation meeting Surveyed villages Jiaocheng 10-12 April 2015 4 Pinghe 11-12 April 2015 4 Fu’an 13-14 April 2015 2 Wuyishan 15-16 April 2015 2 Ninghua 18-19 April 2015 4 Yongding 25 April 2015 2 Xinluo 26 April 2015 2 Datian 18-19 April 2015 4 Youxi 20-21 April 2015 4 Guangze 22-23 April 2015 2 Dongqiao 4-5 May 2015 2 Hua’an 7-11 July 2015 3 Zherong 4-6 May 2015 6 Total 41 Source: PPTA social survey and environmental public consultation, 2015.

Table VII.2: Community Responses Q 1. Are you satisfied with local environmental quality? Frequency (No.) Percentage Q.1.1 Very satisfied 236 39 Q.1.2 Satisfied 353 58 Q.1.3. Not satisfied 21 3 Total 610 100 Q 2. What is the main local environmental issue? Percentage Q2.1 Bad air quality 21.0% Q2.2 Bad water quality 26.6% Q2.3 Noise pollution 13.7% Q2.4 Solid waste 24.0% Q2.5 Bad ecological environment 14.6%

Total 100.0%

Frequency Q3. What impact that you think the project will bring? Percentage (No.) Q3.1 Good impact 483 80.5% Q3.2 Adverse impact 10 1.7% Q3.3 No idea 107 17.8% Total 600 100.0% Q4. What the largest good impact that you think the project Frequency Percentage will bring? (No.) Q4.1Air environmental protection 104 13.2% Q4.2 Water resource protection 152 19.3% Q4.3 Water and soil erosion reduction and ecological 167 21.2% environmental protection Q4.4 Noise pollution reduction 55 7.0% Q4.5 Water resource saving 136 17.3% Q4.6 Solid waste reduction 62 7.9% Q4.7 Soil environment protection 112 14.2% Total 788 100.0%

Frequency Q5. What the adverse impact that you think the project will bring? Percentage (No.) Q5.1 Air environmental pollution 58 15.2% Q5.2 Water resource pollution 69 18.1% Q5.3 Ecological damage 42 11.0% Q5.4 Noise pollution 33 8.7% Q5.5 Water resource waste 60 15.7% Q5.6 Solid waste produce 53 13.9% Q5.7 Soil environmental damage 66 17.3% Total 381 100.0%

Q6. What is your main concern during the project construction Frequency Percentage period? (No.) Q6.1 Noise 89 19.7% Q6.2 Dust 84 18.6% Q6.3 Water resource pollution 77 17.0% Q6.4 Ecological damage 42 9.3% Q6.5 Not convenient for farming 74 16.4% Q6.6 Not convenient for getting around 86 19.0% Total 452 100.0%

Q7. Are you going to make a complaint if the project has impact Frequency Percentage to your daily life? (No.) Q7.1 Yes 105 17.9% Q7.2 No 146 24.8% Q7.3 It depends on the level of impact 337 57.3% Total 588 100.0%

Frequency Q8. Who you will refer to if you are going to make a complaint? Percentage (No.) Q8.1 Contractor 73 16.1% Q8.2 project enterprise 50 11.0% Q8.3 Environmental protection bureau 111 24.4% Q8.4 Village committee 134 29.5% Q8.5 Complaints Office in the Township government 86 18.9% Total 454 100.0%

Frequency Q9. Do you agree the project location? Percentage (No.) Q9.1 Yes 570 93.9% Q9.2 No 1 0.2% Q9.3 Do not care 36 5.9% Total 607 100.0%

Q10. What impact that you think the project will bring to your Frequency Percentage daily life? (No.) Q10.1 Good impact 526 86.2% Q10.2 Adverse impact 3 0.5% Q10.3 No idea 81 13.3% Total 610 100.0%

Q11. What impact that you think the project will bring to local Frequency Percentage economy development and society? (No.) Q11.1 Good impact 527 86.4% Q11.2 Adverse impact 1 0.2% Q11.3 No idea 82 13.4% Total 610 100.0%

Q12. Do you think the project is viable after consider the good Frequency Percentage and adverse impacts that will be caused? (No.) Q12.1 project viable, good impact is greater than the adverse impact 553 91.0% Q12.2 project not viable, adverse impact greater than good impact 8 1.3% Q12.3 No idea 47 7.7% Total 608 100.0% Source: PPTA social survey and environmental public consultation, 2015.

234. Of the 610 people who participated in the survey, 91% supported the project. Most believed that the project will improve local environmental quality (80%) and 86% of the respondents believed that the project construction will bring benefit to their daily life and local economic development. The main environmental concerns during project construction that the community reported were: construction noise (19.7%), community safety and well-being (“getting around during construction”) (19%), dust (18.6%), water resource pollution (17.0%), and ecological damage (9.3%). Mitigation measures to address these issues havew been developed in the environmental impact assessments and are included in the EMP.

235. Consultation meetings were also held with local government authorities including EPBs, Agricultural Bureaus, Planning Bureaus, Land Administration, Water Resource Bureaus, Forest Bureaus and Cultural Relic Bureaus. Major concerns included drinking water source protection and forest protection – and these concerns were fully addressed during project screening.

B. Second Round Information Disclosure

236. A second round of information disclosure was made after the completion of the first draft domestic EIA Tables by the EIA Institutes. The main environmental impacts and mitigation measures, as well as the environmental management plan described in the EIA Tables were notified in public media (http://www.hbsjy.com for Dongqiao and Zherong) and information boards of villages near the subproject sites for the other counties. During this second round of information disclosure, the grievance redress mechanism was also introduced, with assurances that the mechanism and contact points for complaints will be fully publicized at subproject localities before construction commences.

VIII. GRIEVANCE REDRESS MECHANISM

237. A grievance redress mechanism (GRM) has been developed in compliance with ADB’s SPS (2009) requirement to address environmental, health, safety, and social concerns associated with project construction, operation, land leasing and land cooperation arrangements. The GRM is designed to achieve the following objectives: (i) provide channels of communication for local communities to raise concerns about environment- and social-related grievances which might result from the project; (ii) prevent and mitigate adverse environmental and social impacts to communities caused by project construction and operation; (iii) improve mutual trust and respect and promote productive relationships between the PIUs and local communities; and (iv) build community acceptance of the project. The GRM is accessible to all members of the community, including women, youth, and poverty-stricken residents. Multiple points of entry are available, including face-to-face meetings, written complaints, telephone conversations, e-mail, and social media.

238. Public grievances related to project construction to be addressed by the GRM may include damage to public roads, interruption of public services, dust emissions, noise, soil erosion, inappropriate disposal of waste materials, and safety for the general public and construction workers. Public grievances related to land contracts may relate to the lack, or un-timely payment of compensation monies, other allowances, and/or lease monies as per entitlements described in the associated documents.

239. The GRM meets the regulatory standards of the PRC that protect the rights of citizens from construction-related environmental and/or social impacts. Decree No. 431 Regulation on Letters and Visits, issued by the State Council of PRC in 2005, codifies a complaint acceptance mechanism at all levels of government and protects the complainants from retaliation. Based on the regulation, the former State Environmental Protection Administration (SEPA) published updated Measures on Environmental Letters and Visits (Decree No. 34) in 2006.

240. Currently in Fujian Province (and generally in the PRC), when residents or organizations are negatively affected by a development, they may complain, by themselves or through their community committee, to the contractors, developers, the Township Government, the local EPB, the local Forestry Bureau, the local Water and Soil Conservation Station, the provincial DOEP, or by direct appeal to the local courts. The main weaknesses of this system are: (i) the lack of a specialized unit to address grievances; and (ii) the lack of a specific timeframe for the redress of grievances. The project GRM addresses these weaknesses.

241. The details of the project GRM, including a time-bound flow chart of procedures, are included in the project Environmental Management Plan (Attachment 1 of this IEE).

IX. CONCLUSIONS

A. Project Impacts and Mitigation Measures

242. Significant potential environmental impacts were avoided by a strong design and screening process and which resulted in the exclusion from the project of activities involving clearance of natural vegetation, water source protection areas, large scale reservoir construction, or conversion of sloping forest land to terraces.

243. The three key areas of potential environmental impacts are soil erosion (during construction) and the unsustainable use of water resources and use of agricultural chemicals (during operation). Other, more minor risks will occur during construction (impacts to air and/or water quality) or both construction and operation (the need for management of solid waste, and of worker and community health and safety).

244. Pre-construction. Project site planning will be a formal requirement for each subproject to ensure that the layout of work areas and the scheduling of activities is in accordance with the impact mitigation prescriptions of the EMP. Measures to ensure that, prior to project implementation, the capacity to manage the project environmental safeguards is present in the project agencies are identified in the IEE and EMP.

245. Construction. The major potential impact of erosion during subproject construction has been assessed separately, taking into account the individual differences in terrain, soils and enterprise. Strict erosion control prescriptions have been set for PIUs, combining technical specifications of soil and water conservation for sloping land set in Soil and Water Conservation Law of PRC (25 December, 2010) and those developed by the PPTA.

246. Of the subprojects identified as having the highest erosion potential, four also involve significantly large volumes of earthworks. Mitigation measures are set to limit soil erosion during construction. These measures will apply to all subprojects, since all involve some development of sloping land; however the four subprojects identified will be subject to special scrutiny under the EMP due to the large scale of earthworks planned.

247. Embankment construction along streams in valley floor cropping areas will be scheduled for October to February, to complete work during the lowest water levels of the year. A setback of 20 m from the stream banks will allow all trees currently existing along the banks to be retained.

248. Strict control of construction will be checked by CPMOs to ensure that PIUs adhere to the boundaries of existing or abandoned farmland. Measures to stop work spreading onto naturally vegetated areas are to be included in site construction planning and cover the assignment of work areas and access corridors to avoid occupying land randomly. Construction machinery and construction materials will not be placed in naturally vegetated areas.

249. At the Yongding subproject site, no vehicles hauling materials or equipment to and from the site will be allowed to pass through the World Heritage site core and buffer zone, to avoid dust, noise and vibration impact on the Tulou houses. Damage to any trees or shrubs on the ridgetop, which provides a backdrop to the World Heritage site will be strictly prohibited.

250. Potential construction impacts on air quality, on water quality of nearby suface waterbodies and groundwater, and on the noise environment have been reviewed and concluded to be minor and readily minimized through mitigation measures which are set out in the EMP.

251. Operations. There is potential for negative environmental impacts associated with: (i) the exploitation of water resources; and (ii) use of agricultural chemicals. For water use, detailed water demand and supply analyses have demonstrated the sustainability of the proposed water use levels of the subprojects. For the subprojects utilizing runoff, the proportions of water collected range from less than 1% to near 40%, i.e. 75 to 99% of total runoff volumes will return to waterways. For the subprojects extracting water from streams, the mean proportion of water extracted (compared to flow volume of the first upstream tributary) is around 18%. Of these extraction volumes, 20-30% will subsequently return to the streams through surface flow.

252. For the use of agricultural chemicals, through the increased use of organic fertilizers and innovative management and cultivation practices for pest control, a net reduction in the application of agricultural chemicals is predicted for the project enterprises. Due to the unpredictable nature of disease and pest infestations, predicted reductions in pesticides cannot be quantified, but will be strictly monitored and included in progress reports. About 15,110 tons/year of chemical fertilizer will be replaced by organic fertilizer.

253. Other potential impacts in the operational phase of subprojects are: erosion during crop management; solid waste handling and disposal; in-stream weir operation, and; shelterbelt establishment.

254. Crop maintenance, inter-row cultivation and tillage practices on sloping lands have the potential to cause erosion. To prevent this, slope-reversed terraces will be equipped with bamboo-joint ditches on the lower edge inside the terrace to harvest runoff and collect eroded soil materials. Interception dam and rainwater harvest ponds will be maintained to store water for irrigation and intercept sediments eroded from the tea gardens. Farm machinery tracks will be designed to avoid channeling runoff water and managed to maintain stability.

255. Measures to minimize impacts from plastic film mulch will optimize the timing of mulching and timely removal of film to shorten the mulching period, use degradable agricultural plastic film and promote plastic film recovery and recycling. The handling and disposal of waste packaging of fertilizer and pesticide will be given special attention. Fertlizer bags will be recycled and pesticide packaging will be tracked entering and exiting the site through inventorying and segregation for hazardous waste disposal by county waste management agencies.The design of in-stream weirs include gates which maintain the flow of the waterbodies and allow passage of fish. Shelterbelt forests planted in the subprojects will use only native species to improve local biodiversity.

256. Community Health and Safety. The PIUs and construction contractors for the subprojects will include an environmental health and safety management plan, as part of their Site Management Plan as required by the EMP. The contractors’ performance and activities for occupational health and safety shall be incorporated in their monthly progress reports. Safety and health of both workers and nearby residents may be threatened by construction activities, especially during earthworks and the operation of machinery on sloping land. Surrounding residents may also be affected by noise and dust. During operation staff and laborers on the farms will be subject to health and safety issues in their day-to-day work.

257. Environmental Management Plan. The EMP brings together all the mitigation measures for the identified impacts as well as pre-construction requirements, operational management prescriptions and the activities and budgets required to address the unresolved impact issues of wastewater use and groundwater exploitation. The EMP also includes (i) a GRM to ensure affected people have a timely response to their complaints and (ii) an environmental monitoring program, to monitor and report on the environmental performance of project implementation. The EMP includes institutional responsibilities, training needs,

82 reporting schedules and costs for implementing the mitigation measures and the monitoring requirements.

B. Project Assurances

258. The project will comply with all applicable PRC laws and standards as well as the project EMP, including the implementation of all mitigation measures, performance monitoring and reporting, environmental training of project personnel, and the establishment and operation of a grievance redress mechanism.

259. The following project-specific assurances will also be complied with:

(i) Erosion control. All PIUs will ensure that the design, construction and operation of subprojects will comply with technical specifications of soil and water conservation for sloping land set in Soil and Water Conservation Law of PRC (25 December 2010). (ii) Protection of natural vegetation. (a) PIUs will not expand site operations beyond the boundaries agreed for the subprojects. (b) PIUs will confirm that there will be no conversion of natural forest or natural shrublands31 to tea or tea-oil gardens. (c) All subprojects involving stream embankments (including Wuyishan, Datian, Yongding and Xinluo subproject) shall retain existing trees (if any) along both riverbanks. (iii) Pesticides. No pesticides that are listed as ‘Extremely Hazardous’ or ‘Highly Hazardous’ by the World Health Organization, will be used in the project. This includes the prohibition of three pesticides (omethoate, trizophos and dichlorvos) listed in the Fujian Department of Agriculture’s list of recommended pesticide applications. (iv) Weed control. (a) If the use of fast-growing non-native species (e.g. grasses) is required for stabilizing bare construction surfaces, only sterilized seedlings (i.e. which cannot propagate) shall be used. (b) To reduce the risk of spreading weeds, pest animals, and/or soil-based organisms, the project will: (a) prohibit the use of any plant species classified in the PRC as weeds, as defined by the China National Invasive Plant Database (http://www.agripests.cn; 229 species) and by the Ministry of Environment Protection and Chinese Academy of Sciences (19 species). (v) World Heritage Areas. Yongding subproject PIU shall ensure that no activities including truck haulage or machinery movements will pass through the Tulou World Heritage Site core and buffer protection zones, and that no trees on the skyline which forms a backdrop to the Tulou site will be damaged. (vi) Water source protection areas. Datian subproject PIU shall ensure that in the drinking water protection zone portion of the subproject area, only native tree planting is undertaken. (vii) New subprojects. In the event that during project implementation any new subprojects are added, the same selection criteria and technical guiding principals used in the project preparation will be applied.

C. Conclusion

260. The project design has been developed toward the maximization of erosion control, avoidance of new land conversion, and the physical location and management of subprojects to avoid impacts. For environmental safeguards, assuming full and effective implementation of the project EMP (Attachment 1), the potential environmental impacts identified in this IEE are expected to be mitigated to levels which comply with the relevant PRC standards.

31 Defined under Classes 031(forest) and 032 (shrubland) of the PRC’s Land Classification Criteria GB-T21010 (2007).

ATTACHMENT 1: ENVIRONMENTAL MANAGEMENT PLAN

ENVIRONMENTAL MANAGEMENT PLAN

FOR

FUJIAN FARMLAND SUSTAINABLE UTILIZATION AND DEMONSTRATION PROJECT

People’s Republic of China

February 2016

Prepared by the Fujian Provincial Government with the assistance of the Asian Development Bank

TABLE OF CONTENTS

A. Introduction ...... 86 B. Institutional Arrangements and Responsibilities for EMP Implementation ...... 86 C. Project Readiness Inspection ...... 87 D. Summary of Potential Impacts and Mitigation Measures ...... 88 E. Monitoring and Reporting ...... 94 F. Training ...... 100 G. Grievance Redress Mechanism ...... 101 H. EMP Cost Estimates ...... 105 ANNEX 1: TERMS OF REFERENCE FOR PROJECT ENVIRONMENTAL POSITIONS ...... 107 PPMO Environment Officer...... 107 CPMO Environment Officers ...... 107 TOR for Loan Implementation Environmental Consultant ...... 109

This is an attachment to the Initial Environmental Examination Report, which is an official document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of the ADB website (www.adb.org).

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

A. Introduction

1. This Environmental Management Plan (EMP) is developed for the Fujian Farmland Sustainable Utilization and Demonstration Project (the project). It summarizes the potential project environmental impacts and defines mitigation measures and monitoring requirements for the design, construction, and operational stages of the project. It also defines the institutional arrangements and mechanisms, roles and responsibilities of different institutions, and costs for EMP implementation. The EMP seeks to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to avoid, reduce, and/or mitigate adverse impacts and risks. The EMP is based on the findings of the Initial Environmental Examination (IEE) and domestic environmental assessment reports.

2. The EMP was disclosed on the ADB public website (www.adb.org) on 10 February 2016 and is included in the project administration manual (PAM). It will be included as a separate annex in all bidding and contract documents. The contractors will be informed of their obligations to implement the EMP, and to provide for EMP implementation costs in their bids for project works.

3. The EMP includes a monitoring program. Monitoring results will be used to evaluate: (i) the extent and severity of actual environmental impacts against the predicted impacts; (ii) the performance of the environmental protection measures and compliance with relevant laws and regulations; (iii) trends of impacts; and (iv) overall effectiveness of the EMP.

B. Institutional Arrangements and Responsibilities for EMP Implementation

4. The Fujian Provincial Government (FPG) is the Executing Agency (EA) for the project. The FPG has set up a Project Coordinating Group (PRG) to facilitate liaison with project agencies and to assist in complaints resolution in the GRM. The PRG comprises representatives from DRC, Finance Department, Agriculture Department, Water Resource Department, Forestry Department, Environmental Protection Department and the Womens Federation.

5. The EA has established a provincial project management office (PPMO), who will be responsible, on behalf of the EA, for the management of the project and to oversee the implementation of the EMP. The PMO has nominated and established the position of a PMO environmental officer who will directly coordinate the activities of the EMP.

6. Beneath the PPMO are five Municipal PMOs (MPMO) and 13 County PMOs (CPMO). The role of the MPMOs will mainly focus on financial management and procurement matters, except for the Ningde MPMO which will act in the role of CPMO for the subprojects in Fu’an, Zherong and Donqiao counties.

7. The CPMOs will be responsible for day-to-day implementation of the project within each county, at the subproject level. The CPMOs will ensure that the provisions of the EMP are implemented in each subproject. Each CPMO will have a member of staff assigned to manage the EMP implementation and assist the PPMO environmental officer and Loan Implementation Environmental Consultant (LIEC; see below) at the local level.

8. PPMO. The PPMO, through the PPMO environmental officer, and in coordination with the LIEC, will do the following:

(i) Prepare and provide the following specification clauses for incorporation in the bidding procedures: (i) environmental management requirements to be budgeted by PIUs and their construction contractors; (ii) environmental clauses for contractual

terms and conditions; and (iii) the EMP. (ii) Translate the EMP into Chinese-language and ensure that it remains consistent with this original version in English-language. (iii) Ensure the EMP is implemented by the contractors, and that all contractors and PIUs comply with the EMP. (iv) Implement the Grievance Redress Mechanism (Section G). (v) Prepare and submit semi-annual environmental monitoring reports to ADB.

9. Environmental Monitoring Station (EMS). In each project county, the EMS of the Environment Protection Bureau (EPB) will be contracted by each PIU to implement the external environmental monitoring program described in this EMP. The CPMO will supervise this monitoring. Each EMS will report to the local EPBs and CPMO. Each EMS will be identified in the project procurement plan.

10. Loan Implementation Environmental Consultant (LIEC). A LIEC will be hired under the loan implementation consultancy services. The terms of reference for this position are in Annex B. The LIEC is essential to completion of environmental pre-construction activities and should be recruited as soon as possible after loan effectiveness. The LIEC will assist the PPMO Environmental Officer with the following.

11. PIUs. The PIUs will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control at each subproject site. The PIUs and their construction contractors will be responsible for implementing the EMP mitigation measures during construction, under the supervision of the CPMO. The contractors will need to understand their requirements under the EMP. Each contractor will be required to assign a specific member of their work team who will be responsible for the team’s environmental, health and safety management. The contractors will work with the CPMO Environmental Officers, and LIEC, to ensure that prior to any works, the EMP is jointly reviewed and any site-specific measures are identified and agreed.

C. Project Readiness Inspection

12. Before construction, the LIEC will assess each PIU’s readiness in terms of environmental management based on a set of indicators (Table A1.1) and report it to ADB and PPMO. This assessment will demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met. Some of these commitments are particularly important because information relating to them was either not submitted in the PPTA phase or submitted too late in the PPTA phase for proper resolution. These include compliance with loan assurances relating to (i) the impacts of in-stream weirs and (ii) the need to protect an important heritage site.

Table A1.1: Project Readiness Assessment Indicators Indicator Criteria Assessment Yes Environmental  LIEC is in place No Supervision in Yes place  Qualified environmental monitoring stations contracted by CPMOs No Compliance with  The borrower complies with loan assurances related to Yes loan covenants project design and environmental management planning No and assurances Public  Meaningful consultation completed Yes involvement No effectiveness  GRM established with publicized entry points Yes No

Indicator Criteria Assessment Contracts with  Bidding documents and contracts incorporating the Yes environmental environmental activities and safeguards listed as loan No safeguards assurances Site construction  Site construction plan prepared for each PIU. Yes planning No Water extraction  For PIU irrigation systems Yes permits/approvals No EMP financial  The required funds have been set aside for EMP Yes support implementation by each PIU No

D. Summary of Potential Impacts and Mitigation Measures

13. Potential environmental issues and impacts during the pre-construction, construction and operation phases, and corresponding mitigation measures, are in Table A1.2.

Table A1.2: Summary of Potential Impacts and Mitigation Measures Item/media Impact/Issue Mitigation/Safeguard Action Supervise Pre-construction 1.1 Confirmation of Confirm that final slopeland boundaries of subprojects avoid regrowth natural forest and shrubland CPMO LIEC, PPMO Prerequisite slopeland as agreed in screening. steps and boundaries Detail Design Water extraction Obtain a water use permit for water inputs from the local Water Resources Bureaus – providing all PIU Local WRBs, Stage permission details required for that application to the WRB CPMO, LIEC 1.2 Project Establish and Contract a Loan Implementation Environmental Consultant (LIEC) PPMO ADB environmental implement Contract Environmental Monitoring Stations in each county for external monitoring PIU CPMO, LIEC Support environmental Appoint Environmental Officers at PPMO and CPMOs PMO CPMO, LIEC support positions Assign environment officers at each PIU PIU CPMO, LIEC 1.3 Update EMP Update mitigation measures defined in this EMP based on the detailed design. DI, PIU CPMO, LIEC, Construction ADB Preparation Construction  Prepare environment section in the terms of reference for construction bidders; PIU (using CPMO, LIEC Stage plans and  Prepare environmental contract clauses for construction, using reference to EMP and monitoring DIs) documents table. Establish and  Identify GRM entry points and brief them on their role; PMO PCG, LIEC, publicize GRM  Publicize GRM entry points, people and contacts at each PIU construction site, in local ADB newspapers, websites and village committee and community premises before construction commences Construction site  Prepare Site Construction Plans including appropriate parts for each PIU from the project EMP, PIU and CPMO, planning including an environmental health and safety plan contractors LIEC  Nominate an Environmental, Health and Safety Officer (EHSO) in contractors’ team  Develop site environmental health and safety plan. Environmental  LIEC to provide training on implementation and supervision of environmental mitigation measures LIEC PPMO Training to contractors (see Table A1.7) Construction 2.1 Air Quality Local air pollution  Material stockpiles and concrete mixing equipment will be equipped with dust shrouds. Contractor PIU from construction  Earthworks to prepare site should be undertaken just before commencement of construction to activities avoid long term stockpiling.  Vehicles transporting potentially dust-producing materials will have proper fitting sides and tail boards and covered with protective canvasses;  On-site movement of cement bags should not overload people or vehicles to minimize bag rupture and spillage;  Unauthorized burning of waste plant material during land preparation shall be subject to penalties for the Contractor, and withholding of payment.

Item/media Impact/Issue Mitigation/Safeguard Action Supervise Construction For villages within the noise impact distance from construction operations: Contractor, CPMO noise  Erect temporary noise barriers between work site and residents where less than 35m apart. PIU  Daily construction schedules will be arranged to prohibit work in lunch break and at night.  Villagers will be notified before construction activities which emit high noise levels are scheduled.  The construction schedule will be arranged to avoid multiple large-scale and noise emitting machinery operating simultaneously.  To avoid noise impacts on sensitive points along the main road from transport vehicles the construction unit will reduce the number of vehicles and traffic flow, set speed limits and prohibiting the use of the horn in villages. 2.2 Soil Erosion and  Implement erosion controls set out in Soil and Water Conservation Law of PRC. Contractor, CPMO stability siltation  Terraces and soil tillage will be conducted along contours and keeping vegetation between PIU contour terraces to prevent soil erosion.  For new terraces and crops, the time and degree of exposure to erosive forces must be minimized.  Special scrutiny on erosion control will be directed to the following subprojects due to the large scale of earthworks planned: Youxi County Yangzhong Xinkaicheng Urban Construction Co., Ltd; Ninghua State-owned Ecological Forestry Co. Ltd; Longyu Ecological Industry Development Co., Ltd 2.3 Water Pollution of  Oil traps provided for service areas and parking areas, and oil-water separators are installed Contractor PIU quality surface water before the sedimentation tank for oil-containing wastewater; and groundwater  All construction machinery repaired and washed at special repairing shops. No on-site machine repair and washing shall be allowed;  Storage facilities for fuels, oil, and other hazardous materials within secured areas on impermeable surfaces, and provided with bunds and cleanup kits;  The contractors’ fuel suppliers to be properly licensed, follow proper protocol for transferring fuel, and are in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88) Embankments To avoid impact to downstream reaches on flows and turbidity, impact mitigation for embankment Contractor PIU construction along streams in valley floor cropping areas will:  schedule construction work for October to February,  setback 20 m from the stream banks  retain all trees currently existing along the banks  retain “soft” earthen and vegetated foreshores plant the embankments with grass and shrubs. 2.4 Habitat To protect the regrowth natural forests and shrublands not within the footprint of the subproject Contractor CPMO Biodiversity protection developments but on their borders from careless and unplanned construction activities: and PIU  Minimize the areal extent of construction activities being undertaken at any time.

Item/media Impact/Issue Mitigation/Safeguard Action Supervise  Ensure strictly assigned to work areas and access corridors as part of site planning and without occupying land randomly.  Construction machinery and construction materials will not be placed in naturally vegetated areas.  Ensure stockpiles do not overflow onto naturally vegetated areas.  After the completion of the project, cleaning and greening work shall be carried out to restore any damage. Habitat Shelterbelt forests of native species indigenous to the region will be developed to protect plantations PIUs CPMOs enhancement on sloping land from winds and drying out. 2.5 Physical Protection of The Yongding Longyu subproject PIU will ensure that: Contractor CPMO, cultural heritage site  No vehicles hauling materials or equipment to and from the site will be allowed to pass through and PIU Yongding Cult resources the World Heritage site core and buffer zone. ural Relic  Transport routes, confirming this prohibition will be included in the Yongding subproject Site Bureau Construction Plan  Damage to any trees or shrubs on the ridgetop, which provides a backdrop to the World Heritage site will be strictly prohibited. Protection of  Chance find procedures in line with PRC government procedures will be established for Contractor CPMO, chance finds undiscovered underground cultural or historic sites that might be identified during project and PIU County implementation. Cultural Relic Bureaus 2.6 Solid waste  Provide waste collection and storage containers at locations away from surface water or sensitive Contractor CPMO Construction generated by receivers. and PIU waste construction  Arrange with municipal waste collection services for regular collection of waste. activities and  Properly remove and dispose residual materials, and wastes. Paving or vegetating shall be done from workers’ as soon as the materials are removed to stabilize the soil. camps 2.7 Health and Community  Plan construction activities so as to minimize disturbances to residents, utilities and services. Contractor CPMO safety safety  Implement safety measures around the construction sites to protect the public, including warning and PIU signs to alert the public to potential safety hazards, and barriers to prevent public access to construction sites.  Negotiate haulage truck and machinery movements with village committees to ensure that village activities (market days etc) and residential roads are minimally impacted by construction traffic. Construction  Take all reasonable steps to protect any person on the site from health and safety risks; Contractor PIU, CPMO worker safety  Make the construction site a safe and healthy workplace;  Make machineries and equipment areas safe;  Provide adequate training or instruction for occupational health and safety;  Provide all workers with personal protection equipment;

Item/media Impact/Issue Mitigation/Safeguard Action Supervise  Implement adequate supervision of safe work systems;  Provide means of access to and egress from the site without risk to health and safety.  The contractors’ performance and activities for occupational health and safety shall be incorporated in their monthly progress reports;  All activities will comply with the Labour Law of the PRC, the Labor Contract Law of the PRC, and the Special Rules on the Labor Protection of Female Employees. Operation 3.1 Water Impact on  Minimize use of chemical fertilizer through soil testing and crop management. Maximize use of PIU CPMO surface water organic fertilizers and straw mulches. quality from  Reduce chemical pesticide use by: selection of seedlings with disease and insect resistance, agricultural introduction of nursery stock quarantine, cultivation measures to improve plant resistance to chemicals disease and insect pests including removal of diseased plants, pest capture on a population scale using light traps and sticky traps at high density at crops’ insect-prone periods. 3.2 Soil Erosion and  On the steeper slopes, slope-reversed terraces (higher elevation at the outside of the terrace than PIU CPMO stability siltation on the inside) will be equipped with bamboo-joint ditches on the lower edge inside the terrace to harvest runoff and collect eroded soil materials.  At the lower elevation part of the tea gardens, interception dam and rainwater harvest ponds will be maintained to store this rainwater for irrigation and to store sediments eroded from the tea gardens.  On the more gentle slopes erosion will be prevented by planting on the contour with protective ridges.  As with the terraces, grassed waterways are used to channel runoff water into collector structures (ponds or concrete tanks).  During crop management, PIUs will implement erosion controls set out in Soil and Water Conservation Law of PRC. 3.3 Waste Unplanned or  All biomass waste from cultivation, pruning and weeding will be reused on site either for PIU CPMO n unsound disposal composting or mulch. No waste will be burnt. of agricultural  Residue of agricultural plastic film left in the soil will be minimized by (i) film mulching practices wastes which optimize the timing of mulching and timely removal of film to shorten the mulching period; (iii) use of biodegradable polymer agricultural plastic film; (iv) where film is not degradable, promotion of agricultural plastic film recovery and recycling. Fertilizer and  Packaging for fertilizers will be recycled by farmer households, or subproject enterprises PIU CPMO pesticide  For pesticide packaging, the following measures will be implemented: packaging - Training will be conducted for farmers involved in the subprojects, on chemical packaging handling and recycling; - For pesticide packaging and containers, the PIUs will record all the utilization of pesticide, and require staff and farmers to return the empty packages to the PIU.

Item/media Impact/Issue Mitigation/Safeguard Action Supervise - The PIU will ensure segregation of the pesticide waste at the subproject site from all other waste and will ensure that it is managed/disposed of by the county authorities with other toxic and hazardous waste that they collect. 3.4 Health and Health and safety  Operating staff to be protected from workplace hazards: PIU CPMO safety of operating staff  In the operations phase of the project, staff engaged in the running of the facility including agricultural activities and irrigation systems will be issued with personal protective gear appropriate to the task.  All electrical connections in the subprojects will be completed and periodically checked by qualified electricians.  The openings of all water storage tanks at ground level will be fenced and gated to prevent accidents.  The PIUs and contractors will apply strict health and safety protocols for staff in the handling, application and clean-up of agricultural chemicals. These protocols will be in full compliance with the PRC’s Regulations on Safe Management of Hazardous Chemicals (Decree 591) ADB = Asian Development Bank; EIA = Environmental Impact Assessment; EPB = Environment Protection Bureau; PIU = Participating Implementing Unit; DI = Design Institute; O and M = operation and maintenance; CPMO = county project management office; PPMO = provincial project management office; PRC = People’s Republic of China; WRB = water resources bureau.

E. Monitoring and Reporting

14. Three types of project monitoring will be conducted under the EMP: (i) internal monitoring and supervision and reporting by each PIU; (ii) EMP implementation monitoring and progress reporting by the LIEC; and (iii) environmental compliance monitoring by local EMSs.

15. The project monitoring program focuses on the environment in the project areas of influence in the 13 project counties (Tables A1.3a and A1.3b). The program covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards and national environmental quality standards of air, surface water, groundwater and noise, and the pollutant discharge standards (Table A1.4).

16. Internal monitoring and supervision. During construction, the PIUs will be responsible for conducting internal environmental monitoring in accordance with the monitoring plan (Table A1.3a). Results will be reported through the PIU reports to the CPMOs.

17. EMP implementation monitoring and progress reporting. The LIEC will review project progress and compliance with the EMP based on field visits, and the review of the environmental monitoring conducted by the EMS. The findings of the LIECs will be reported to ADB through the semiannual EMP monitoring and progress reports. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The LIEC will help PMO prepare the reports and submit the English report to ADB for appraisal and disclosure.

18. Environmental compliance monitoring by local EMS. The PIUs in each city or county will contract the city or county EMS to conduct environmental monitoring in accordance with the monitoring program (Table A1.3b). A detailed cost breakdown will be provided by the county EMS when the environmental monitoring program is updated at the start of each component implementation. Monitoring will be conducted during construction and operation period, until a PCR is issued. Semi-annual monitoring reports will be prepared by the EMSs and submitted to CPMOs and the PIUs.

19. The environmental monitoring results will be compared with relevant PRC performance standards (Table A1.4). Non-compliance with these standards will be highlighted in the monitoring reports. Monitoring results will be submitted to the CPMOs and then reported by the PPMO to ADB in semi-annual environmental monitoring reports (prepared with the support of the LIEC; Table A1.5).

Table A1.3a: Internal Environmental Monitoring Program

Frequency & Cost (per PIU/year) Variable Location Parameter Implement Duration CNY Construction Stage Downstream of nearest surface Visual inspection for turbidity and oil Water environment waterbody which receives site Weekly PIU 3,000 in water runoff Visual inspection for dust intrusion Air environment At villages near subprojects Weekly PIU 4,000 into village Hand held noise meter (dB(A) - Acoustic At villages near subprojects maximum level over 10 mins and 10 Weekly PIU 5,000 environmental min average) Operational Stage Downstream of nearest surface Visual inspection for turbidity and oil Monthly and after Water environment waterbody which receives site PIU 3,000 in water heavy rain runoff For subprojects with highest Cultivation practices to maximize erosion potential* all sloping Monthly and after Erosion coverage of bare earth, and time PIU - areas during cultivation and heavy rain and degree of exposure to erosion. growth. Shelterbelt plantations Visual inspection and recording of Shelterbelt growth Quarterly PIU 4,000 established on site growth and replacements Inventory of all pesticide use including:  Disease/pest Pesticide use All subproject enterprises Ongoing, as required PIU 6,000  Product name  Application rate and time  Result Total 25,000 CPMO = county project management office; LIEC = loan implementation environment consultant; PPMO =provincial project management office.* Youxi County Yangzhong Xinkaicheng Urban Construction Co., Ltd; Ninghua State-owned Ecological Forestry Co., Ltd; Fujian Ninghua County Ninghua Science and Technology Co., Ltd; and Longyu Ecological Industry Development Co. Ltd

Table A1.3b: External Environmental Monitoring Program

Unit cost per Cost Super- County Phase Variable Location Indicator Frequency Agency Remark session (CNY) vision

Water Wufu Creek (2 sections) pH, SS, COD, Petroleum 2 times/year, 1 day/time 2,000 12,000

Air TSP, PM10 4 times/year, 2 days/time 3,000 36,000 6 points near Wengdun, Wuyishan 3 years for Construction EMS Xingxian, Wuyi, Wufu, EPB construction Tianwei, Dajiang, Wuyishan Noise Maochang, Xiwei & Diancun LAeq 4 times/year, 1 days/time 1,800 21,600 villages

Water quality of 3 creeks: Wengdun, Guting, pH, SS, COD, BODs, Wuyishan 1 year after the Operation 2 times/year, 1 day/time 3,000 6,000 EMS nearby rivers Wufu TP, NH3-N EPB project operation Sub-total 75,600 Water 2 creeks: Zhima, Lifang pH, SS, COD, Petroleum 2 times/year, 1 day/time 2,000 12,000 Guangze 3 years for Construction EMS Air 3 points at villages of Zhima, TSP, PM10 4 times/year, 2 days/time 1,500 18,000 EPB construction Guangze Noise Qingmu and Baimenlou LAeq 4 times/year, 1 days/time 900 10,800 Water quality of pH, SS, COD, BODs, Guangze 1 year after the Operation 2 creeks: Zhima, Lifang 2 times/year, 1 day/time 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 44,800 3 creeks: Xianfeng, Hongqi, Water pH, SS, COD, Petroleum 2 times/year, 1 day/time 3,000 18,000 Wenjiang Datian 3 years for Construction Air 6 points at villages: TSP, PM10 4 times/year, 2 days/time 3,000 36,000 EMS Pingshan, Meiyang, EPB construction Datian Noise Neiyang, Wushan, Jiyang, LAeq 4 times/year, 1 days/time 1,800 21,600 Shangjing Water quality of 3 creeks: Xianfeng, Hongqi, pH, SS, COD, BODs, Datian 1 year after the Operation 2 times/year, 1 day/time 3,000 6,000 EMS nearby rivers Wenjiang TP, NH3-N EPB project operation Sub-total 81,600

Water 2 creeks: Xinling, Gaozhou pH, SS, COD, Petrolum 2 times/year, 1 day/time 2,000 12,000 Youxi 3 years for Youxi Construction EMS EPB construction Air No sensitive site 0

Unit cost per Cost Super- County Phase Variable Location Indicator Frequency Agency Remark session (CNY) vision Noise No sensitive site 0 Water quality of pH, SS, COD, BODs, Youxi 1 year after the Operation 2 creeks: Xinling, Gaozhou 2 times/year 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 16,000 Water 2 creeks: Dongxi, Xixi pH, SS, COD, Petrolum 2 times/year 2,000 12,000

Air TSP, PM10 4 times/year, 2 days/time 3,000 36,000 6 points for the villages: Ninghua 3 years for Construction Changtan, Zhongsha, EMS Sunkeng, Tianbei, EPB construction Noise LAeq 4 times/year, 1 day/time 1,800 21,600 Ninghua Fengshan, Zhuyuan, Qiaotou, Jiangtou, Xibei, Guankeng, Longtou Water quality of pH, SS, COD, BODs, Ninghua 1 year after the Operation 2 creeks: Dongxi, Xixi 2 times/year 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 73,600 3 creeks: Gaotouxi, Water pH, SS, COD, Petrolum 2 times/year 3,000 18,000 Jiaotangxi, Hongkeng Yongding 3 years for Construction EMS Air 5 points near Hongkeng, TSP, PM 4 times/year, 2 days/time 2,500 30,000 EPB construction Liulian, Xikou,Gaotou, 10 Yongding Noise Guzhu villages LAeq 4 times/year, 1 day/time 1,500 18,000 Water quality of 3 creeks: Gaotouxi, pH, SS, COD, BODs, Yongding 1 year after the Operation 2 times/year 2,000 4,000 EMS nearby rivers Jiaotangxi, Hongkeng TP, NH3-N EPB project operation Sub-total 70,000 2 creeks: Shizhong, Water pH, SS, COD, Petrolum 2 times/year 2,000 12,000 Xiangshan Xinluo 3 years for Construction EMS Air 6 points near Zhongxin, TSP, PM 4 times/year, 2 days/time 3,000 36,000 EPB construction Zhongxi, Renhe, Xiangshan, 10 Xinluo Noise Baofeng, Yangdong villages LAeq 4 times/year, 1 day/time 1,800 21,600 Water quality of 2 creeks: Shizhong, pH, SS, COD, BODs, Xinluo 1 year after the Operation 2 times/year 2,000 4,000 EMS nearby rivers Xiangshan TP, NH3-N EPB project operation Sub-total 73,600

Unit cost per Cost Super- County Phase Variable Location Indicator Frequency Agency Remark session (CNY) vision Water 2 creeks: Huashan, Jiufeng pH, SS, COD, Petrolum 2 times/year 2,000 12,000 Pinghe 3 years for Construction Air 5 points near Hongkeng, TSP, PM 4 times/year, 2 days/time 2,500 30,000 EMS Liulian, Xikou,Gaotou, 10 EPB construction Pinghe Noise Guzhu villages LAeq 4 times/year, 1 day/time 1,500 18,000 Water quality of pH, SS, COD, BODs, Pinghe 1 year after the Operation 2 creeks: Huashan, Jiufeng 2 times/year 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 64,000 Water Huashan Creek pH, SS, COD, Petrolum 2 times/year 2,000 12,000 Hua'an 3 years for Construction Air EMS No sensitive site EPB construction Noise Hua'an Water quality of pH, SS, COD, BODs, Hua'an 1 year after the Operation Huashan Creek 2 times/year 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 16,000 Water Baishi Creek pH, SS, COD, Petrolum 2 times/year 2,000 12,000 Fu'an 3 years for Construction EMS Air 5 points near Keyang, TSP, PM10 4 times/year, 2 days/time 2,500 30,000 EPB construction Songluo, Tanyang, Xikou Fu'an Noise LAeq 4 times/year, 1 day/time 1,500 18,000 Water quality of pH, SS, COD, BODs, Fu'an 1 year after the Operation Baishi Creek 2 times/year 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 64,000 4 creeks: Huotong, Qidu, Water pH, SS, COD, Petrolum 2 times/year 4,000 24,000 Dajin, Chi Jiaocheng 3 years for Construction EMS Air EPB construction No sensitive site Jiaocheng Noise Water quality of 4 creeks: Huotong, Qidu, pH, SS, COD, BODs, Jiaocheng 1 year after the Operation 2 times/year 4,000 8,000 EMS nearby rivers Dajin, Chi TP, NH3-N EPB project operation Sub-total 32,000 4 creeks: Xingrong, Dong, Zherong 3 years for Zherong Construction Water pH, SS, COD, Petrolum 2 times/year 4,000 24,000 EMS Xi, Taokeng EPB construction

Unit cost per Cost Super- County Phase Variable Location Indicator Frequency Agency Remark session (CNY) vision

Air Hongkeng and Shishan TSP, PM10 4 times/year, 2 days/time 1,000 12,000 village Noise LAeq 4 times/year, 1 day/time 600 7,200 Water quality of 4 creeks: Xingrong, Dong, pH, SS, COD, BODs, Zherong 1 year after the Operation 2 times/year 4,000 8,000 EMS nearby rivers Xi, Taokeng TP, NH3-N EPB project operation Sub-total 51,200 Water 2 creeks: Xietan, Huotong pH, SS, COD, Petrolum 2 times/year 2,000 12,000 Shouning 3 years for Construction EMS Air 2 points near Wuqu and TSP, PM10 4 times/year, 2 days/time 1,000 12,000 EPB construction Dahan villages Dongqiao Noise LAeq 4 times/year, 1 day/time 600 7,200 Water quality of pH, SS, COD, BODs, Shouning 1 year after the Operation 2 creeks: Xietan, Huotong 2 times/year 2,000 4,000 EMS nearby rivers TP, NH3-N EPB project operation Sub-total 35,200 GRAND TOTAL 697,600

BOD = biological oxygen demand; COD = chemical oxygen demand; EMS = Environmental Monitoring Station; EPB = Environment protection Bureau; O&M = operation and maintenance; CPMO = County Project Management Office; PIU = Project Implementing Unit, TN = total nitrogen, SS = suspended solids. TP = total phosphorous, TSP = total suspensed particles; NH3-N = ammonium nitrate.

Table A1.4: Monitoring Indicators and Applicable PRC Standards Phase Indicator Standard Construction Dust at PIU boundary Air Pollutant Comprehensive Emission Standard (GB16297-1996) Dust at nearby Class II Ambient Air Quality Standard (GB 3095-1996) village(s) Noise limits at Emission Standard of Environmental Noise for Boundary of boundary of PIU Construction Site (GB 12523-2011) Surface water quality Surface Water Ambient Quality (GB3838-2002). The target standard for each monitoring site is the existing (pre-construction) quality class Operation Surface water quality Surface Water Ambient Quality (GB3838-2002). The target standard for each monitoring site is the existing (pre-construction) quality class

20. Environmental acceptance reporting. Following the PRC Regulation on Project Completion Environmental Audit (MEP, 2001), within three months after the completion of each subproject, an environmental acceptance report for each subproject shall be prepared by a licensed environmental monitoring institute. The report will be reviewed and approved by the Fujian EPD and reported to ADB (Table A1.5). The environmental acceptance reports of the component completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations.

Table A1.5: Reporting Plan Reports From To Frequency Pre-construction Phase Project Project Readiness report LIEC ADB Once before readiness construction Construction Phase External Environmental monitoring Qualified Local Quarterly environmental report environmental EPBs, monitoring monitoring stations CPMOs Compliance Environment progress and PPMO, LIEC ADB Semi-annual monitoring monitoring reports Acceptance Environmental acceptance Licensed Local Once; within 3 report report acceptance EPB, EPD months of institute completion of physical works Operational Phase Compliance Compliance with EMP LIEC ADB Quarterly monitoring measures report (first year of operation) External Environmental monitoring Qualified Local Quarterly environmental report (first year of environmental EPBs, monitoring operation)* monitoring stations CPMOs Progress Environmental progress PPMO ADB Semi-annual report report ADB = Asian Development Bank; EPD = Environmental Protection Department; EPB = Environment Protection Bureau; LIEC = Loan Implementation Environment consultant; CPMO = County Project Management Office; PPMO = Provincial Project Management Office * monitoring from the date of the acceptance report

F. Training

21. The capacity of the CPMO and the PIUs staff responsible for EMP implementation and supervision will be strengthened through training. This will impart an understanding of the

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goals, methods, and practices of project environmental management. Initially the training will be in formal workshops but will extend to on the job training by the LIEC as he/she visits construction sites.

22. The training will cover EMP implementation, supervision, and reporting, and on the Grievance Redress Mechanism (Table A1.6). Training will be facilitated by the LIEC with support of other experts under the loan implementation consultant services. Attendees from the PIUs will be staff nominated to oversee EMP implementation and supervising engineers.

Table A1.6: Training Program Cost (CNY / Partici Total Training Attendees Contents Times Days person / pants CNY day) EMP CPMO and Roles, Once prior to, 2 70 600 84,000 implementation PIUs responsibilities, and once after monitoring, the first year of supervision, project reporting, implementation review Grievance All “project Roles and Once prior to, 1 30 600 18,000 Redress agencies” responsibilities, and once after, Mechanism Procedures the first year of project implementation Environmental CPMO and Pollution control Once (during 1 30 600 18,000 protection and PIUs on construction project monitoring sites (air, noise, implementation) waste water, solid waste) Chemical PIUs, Safe handling Once (during 1 30 600 18,000 package agricultural and procedures project handling and contractors for inventorying implementation) recycling and packages and farmers containers. Total estimated cost: 138,000 Note. All costs, including training, were estimated by the PPTA team based on experience in similar projects

G. Grievance Redress Mechanism

23. A Grievance Redress Mechanism (GRM) has been established as part of the project EMP to receive and manage any public environmental and/or social issues which may arise due to the Project. The project agencies will ensure that potentially affected communities are informed on GRM at an early stage of the project.

24. Project agencies (i.e. those directly involved in the project) comprise the Provincial, Municipal and County PMOs, PIUs, contractors, and village committees. The PPMO is the lead agency responsible for overall management, implementation, and reporting of the GRM. The PPMO Environment Officer coordinates the GRM and will: (i) establish a simple registry system to document and track grievances received (including forms to record complaints and how they have been resolved); and (ii) report on progress of the GRM in the semi-annual environmental monitoring and progress reports to ADB.

25. The CPMOs will coordinate the GRM at the local level. The CPMO Environment Officers will (i) instruct the concerned PIUs and contractors on their responsibilities in the GRM; (ii) establish liaison with PIUs and contractors to ensure that all complaints received and immediately resolved by them are reported, and that more difficult issues are referred to the CPMO; and set up their own recording system for gathering GRM data and passing it on to the PPMO.

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26. All contractors and work staff will be briefed by the CPMO on the GRM. Contractors and workers will be instructed to be courteous to local residents and, in the event they are approached by the general public with an issue, to immediately halt their work and report the issue to the foreman. (ii) at least one sign will be erected at each construction site providing the public with updated project information, the GRM process, and contact names and details for the GRM entry points.

27. Prior to project construction, the CPMO and will notify all relevant agencies about the project and GRM, so that if these agencies receive complaints, they know to contact the PMO and follow up as necessary. This will include, but not be limited to, local EPBs, the local courts, and police.

28. The procedure and timeframe for the GRM is shown in Figure A1.1 and is as follows:

Environmental Complaints

Stage 1 (maximum 5 days). Affected persons or groups can submit a written or oral complaint to the project enterprises and contractors as well as village committee as they wish to. These agencies take following actions in Stage 1 if they receive a complaint.

(a) Step 1. Project agency receives complaint and assesses if the complaint is eligible. Eligible complaints include those where (i) the complaint pertains to the project; and (ii) the issues fall within the scope of environmental and social issues that the GRM is authorized to address. (b) Step 2a—Eligible complaints. The agency attempts to resolve the issue directly with the affected person. Within 2 days of receiving the complaint, the agency will provide clear advice to the affected person on the proposed corrective action and by when it will be taken. In general, the corrective action(s) will be implemented not later than 5 days from this point. If quick corrective action is not possible, or the agency receiving the complaint is unsure how to proceed, or the complainant is not satisfied by the initial corrective action, then the complaint will be referred to the CPMO and Stage 2 actions. (c) Step 2b—Ineligible complaints. If a complaint is assessed to be ineligible, the project agency meets with the affected person and informs them, and will ask the affected person if they would like to be referred to relevant agencies. (d) Step 3. The project agency submits all documentation on the case to CPMO. This will include making a written record of any oral complaints.

Stage 2 (maximum 10 days). For complaints not resolved in Stage 1, Stage 2 is initiated.

(a) Step 1: The CPMO environment and/or social officers will meet with the affected person and together discuss the issue and identify possible solutions. At the meeting, a possible solution will be agreed upon. The subject agency (e.g., contractor, the PIU, village committee) will implement the agreed solution and report the outcome to the CPMO within 5 days of receipt of this advice. (b) Step 2: if the Step 1 is unsuccessful (i.e. no solution can be identified or the affected person is not satisfied with the proposed solution), the CPMO will refer the complaint to the county project leading group (CPCG). The CPCG will work with all stakeholders (CPMO, APs, and related county administrative bureaus) to identify a solution acceptable to all. The agreed solution will be implemented within 5 days and progress reported to the PPMO.

Stage 3 (maximum 10 working days). For complaints not resolved in Stage 2, Stage 3 is initiated (similar principal and procedures as stage 2), and PPMO will take lead to address and solve the complaints, or coordinating with its level PCG and administrative departments.

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29. If the above is diligently undertaken, and is still unsuccessful, people adversely affected by the project may submit complaints to ADB’s Accountability Mechanism.32

Land Contract Complaints

30. For any affected persons related to land contract, land transfer or forestland rights complaints, they can also complain to the Land-contracted Dispute Arbitration Committee. The acceptance and arbitration time follows "PRC laws in dispute mediation and arbitration in rural land contract and management". After the adjudication has been by the Committee, the APs and project enterprises have to implement it if no prosecuting will be made to the Court within 30 days.

32 See: www.adb.org/ accountability-mechanism

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AP = affected person, EPB = environmental protection bureau, PMO = project management office; PIU = project implementing unit. Figure A1.1: Project Grievance Redress Mechanism for social and environmental issues.

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31. No part of the project GRM affects the rights of an affected person to take their complaints to the higher level of administrative agencies or courts. At any time in this process, an affected person may contact ADB (East Asia Department) directly, including ADB’s Resident Mission in the PRC.

32. Any costs incurred to receive document and address grievances will be paid by the PPMO or with regard to relevant laws and regulations (No charge from complaints).

33. The tracking and documenting of grievance resolutions by the PPMO will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) regular updating of the GRM database by the PPMO Environment Officer; (iii) processes for informing stakeholders about the status of a case; and (iv) a simple but effective filing system, so that data can be retrieved for reporting purposes, including reports to ADB.

H. EMP Cost Estimates

34. The cost for EMP implementation comprises three items: mitigation measures (Table A1.2), environmental monitoring (Tables A1.3a–b), and training (Table A1.6). The costs are summarized in Table A1.7. Excluded from the budget are (i) detailed design revisions and adjustments, (ii) infrastructure costs which relate to environment and public health but which are already included in the project direct costs, and (iii) remuneration for the PPMO and CPMO Environment Officers and loan implementation consultants. Costs were developed by the PPMO and PPTA team based on the costs of similar projects and team experience.

35. The PIUs will pay for compliance environmental monitoring costs during construction and initial operating phase. The PIUs and their contractors will pay for all mitigation measures during construction, including those specified in the contract documents and any unforeseen impacts due to construction activities. The PPMO and PIUs will bear the costs related to environmental supervision during construction and operation respectively. The PPMO will bear the costs for training, the GRM, and the LIEC.

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Table A1.7: Summary of EMP Budget for Five Years. See Tables A1.2, A1.3a–b, and A1.6 for breakdown of costs (CNYx103).

Agency Impact mitigation (Table A1.2) Monitoring – Training 1.3 2.3 Protection 2.4 internal + Total for five Total per 2.2 Erosion 3.5 Health & (Table 1.3 GRM Construction of water Shelterbelt external years year control safety A1.6) site planning quality establishment (Table A1.3) PMOs 100.00 0.00 0.00 0.00 0.00 0.00 0.00 120.00 220.00 44.00 Wuyishan 50.00 15.00 3,965.00 150.00 3,250.00 500.00 130.60 0.00 8,060.60 1,612.12 Guangze 50.00 10.00 3,200.00 20.00 6,000.00 260.00 99.80 0.00 9,639.80 1,927.96 Datian 50.00 30.00 6,724.00 30.00 10,000.00 1,460.00 136.60 0.00 18,430.60 3,686.12 Youxi 50.00 18.00 11,079.00 60.00 1,640.00 1,340.00 71.00 0.00 14,258.00 2,851.60 Ninghua 50.00 30.00 9,785.00 270.00 1,276.00 1,110.00 128.60 0.00 12,649.60 2,529.92 Yongding 50.00 20.00 167.00 80.00 2,447.00 450.00 125.00 0.00 3,339.00 667.80 Xinluo 50.00 20.00 4,766.00 100.00 5,956.00 350.00 128.60 0.00 11,370.60 2,274.12 Pinghe 50.00 15.00 1,504.00 150.00 13,255.00 480.00 119.00 0.00 15,573.00 3,114.60 Hua'an 50.00 10.00 1,609.00 300.00 18,058.00 280.00 71.00 0.00 20,378.00 4,075.60 Fu'an 50.00 10.00 296.00 50.00 5,378.00 570.00 119.00 0.00 6,473.00 1,294.60 Jiaocheng 50.00 10.00 660.00 150.00 1,490.00 190.00 87.00 0.00 2,637.00 527.40 Zherong 50.00 10.00 2,585.00 50.00 700.00 340.00 106.20 0.00 3,841.20 768.24 Dongqiao 50.00 10.00 529.00 100.00 1,800.00 120.00 90.20 0.00 2,699.20 539.84 District Total CNYx103 750 208 46,869 1,510 71,250 7,450 1,412.60 120.00 129,569.60 25,913.92 GRAND TOTAL CNYx103 129,569.60

PMO = project management office (both provincial and county-level).

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ANNEX 1: TERMS OF REFERENCE FOR PROJECT ENVIRONMENTAL POSITIONS

I. BACKGROUND

1. The PPMO is responsible for project implementation and comprises the provincial agencies involved in the project. The CPMO is engaged in the day-to-day management of the project and deals directly with the PIUs and their subprojects.

2. Compliance with the Loan and Project Agreements includes implementation of an Environment Management Plan (EMP), which is prepared as part of the project environment impact assessment. The EMP is the critical guiding document to manage, monitor, and report upon potential project environmental impacts. Implementation of the EMP is a full-time task. For this reason, the PPMO and CPMOs assigns full-time officers for this role. These terms of reference describe the requirements for these officers.

3. Both the PPMO and CPMO Environment Officers will work on behalf of their agency to implement the project EMP. The positions are for the entire project duration (five years).

II. DETAILED TASKS

PPMO Environment Officer

4. The PPMO Environment Officer will have a detailed understanding of the project EMP and supporting documents, including the domestic environmental reports, the project IEE, and project environmental assurances. The officer will be responsible for the following:

(i) Assess whether the EMP requires updating due to any changes in project design which may have occurred after the EMP was prepared. (ii) Distribute the Chinese language version of the EMP to all relevant agencies, including the implementing agencies, provincial and municipal agencies for environment protection, forestry, water resources, and/or land planning, contractors, and construction supervision companies. This should occur at least three months before construction begins. (iii) Conduct meetings with agencies as necessary to ensure they understand their specific responsibilities described in the EMP. (iv) Ensure that relevant mitigation, monitoring and reporting measures in the EMP are included in the bidding documents, contracts and relevant construction plans. (v) At least two months before construction begins, establish and implement the project Grievance Redress Mechanism (GRM) described in the EMP. This will include: (a) prepare a simple table and budget identifying the type, number and cost of materials needed to inform local communities about the GRM and starting dates and scope of construction; (b) design, prepare and distribute these materials, and plan and conduct the community meetings; (c) prepare a form to record any public complaints; (d) prepare a summary table to record all complaints, including dates, issues, and how they were resolved; and (e) ensure that all relevant agencies, including contractors, understand their role in the GRM. (vi) Prior to construction, ensure that PIUs and their contractors have informed their personnel, including all construction workers, of the EMP requirements. This will include all mitigation measures relating to impacts to air, water, noise, soil, sensitive sites, ecological values, cultural values, worker and community health and safety, respectful behavior when communicating with local communities, and responding to and reporting any complaints. (vii) During project construction, regularly meet with CPMO Environment Officers and review subproject implementation progress and compliance with the EMP. (viii) Compile, review, and store environmental progress reports from the CPMOs, records of any grievances, and any other relevant issues. Maintain digital copies of all information. When necessary, enter data into summary tables in digital format (e.g. to transfer records of grievances from hard copy forms). Ensure that all information is stored in the PMO filing system, backed up, and can be easily retrieved. (ix) Prepare semi-annual environment progress reports on behalf of the PPMO.

CPMO Environment Officers

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5. The CPMO Environment Officers will have a detailed understanding of the project EMP and project assurances as they apply to their county and subprojects and supporting documents, including the domestic environmental report for the county and the technical appendices of the PPTA DFR. The officers will be responsible for the following:

(i) Work closely with the PPMO Environment Officer to ensure that final subproject designs comply with the requirements set out in the EMP and project assurances. (ii) Distribute the Chinese language version of the EMP to all relevant agencies at the county and township level, including the agencies for environment protection, forestry, water resources, village committees, and contractors. This should occur at least three months before construction begins. (iii) Conduct meetings with agencies as necessary to ensure they understand their specific responsibilities described in the EMP. (iv) Ensure that relevant mitigation, monitoring and reporting measures in the EMP are included in the bidding documents, contracts and relevant construction plans. (v) At least two months before construction begins, establish and implement the project Grievance Redress Mechanism (GRM) described in the EMP. This will include ensuring that the GRM is publicized at and around the sites and the preparation of local record-keeping spreadsheets. (vi) During project construction, make regular site visits to assess progress, meet with contractors and/or local communities, and assess compliance with the EMP. (vii) Work closely with PIUs, loan implementation consultants, PPMO Environment Officer and other county agencies and personnel as necessary to conduct these tasks.

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TOR for Loan Implementation Environmental Consultant

I. BACKGROUND

1. The Fujian Farmland Sustainable Utilization and Demonstration Project, Fujian province, People’s Republic of China (PRC) will be implemented by 21 agricultural enterprises distributed among the 13 counties engaged in tea and tea-oil production on slopeland areas as well as other cropping including rice, in the valley floors. These enterprises will comprise both State Owned Enterprises (SOE) and Project Participating Enterprises (PPE), collectively called Project Implementing Units (PIUs).

2. Project implementation will be overseen and coordinated by a Provincial Project Management Office (PMO), established within the Provincial Department of Agriculture. The PPMO will be assisted by a Loan Implementation Consultant team. The Loan Implementation Environmental Consultant (LIEC) will be a part of this team and will assist the PPMO with implementation of the project Environmental Management Plan (EMP).

II. SCOPE AND DURATION OF WORK

3. This position could be a firm or an individual engaged by the PPMO. It is an independent position. It is not part of the PPMO in-house environmental team or any PIU. The specialist will report directly to the PPMO. The position is for 10 person-months spread over the entire project duration (5 years). The LIEC should be recruited as soon as possible after loan effectiveness, as their first task is to confirm project environmental readiness (EMP Table A1.1).

III. QUALIFICATIONS

4. The specialist will have: (i) an undergraduate degree or higher in environmental management or related field; (ii) at least five years of experience in environmental management, monitoring, and/or impact assessment; (iii) familiarity with ADB project management requirements and national environmental management procedures; (iv) ability to communicate and work effectively with local communities, contractors, and government agencies; (v) ability to analyze data and prepare technical reports; (vi) willingness and health to regularly visit the subproject sites; and (vii) proficiency in spoken and written English.

IV. TASKS

Before construction

(i) Ensure project environmental readiness, including: (i) checklist in Table A1.1 of the EMP is achieved; (ii) all contractor contracts include, and will comply with, the EMP; and (iii) relevant sections of the EMP are incorporated in construction plans and contracts. (ii) Ensure that relevant sections of the project EMP are incorporated in the construction contract documents. (iii) Assist the PPMO to implement the GRM, including: (i) establish and publicize the GRM; and (ii) collate and evaluate grievances received. (iv) Develop procedures to: (i) monitor EMP implementation progress; (ii) collate and evaluate data collected in the EMP environmental monitoring program; and (iii) prepare and submit the semi-annual environmental monitoring reports to ADB (until Project Completion Report). (v) Provide hands-on support and on-the-job training to the CPMOs, PIUs and contractors on the specific requirements of the EMP as required.

During project implementation

(i) Undertake site visits to all PIUs during subproject construction and operating phase. (ii) Conduct EMP compliance assessments, identify any environment-related implementation issues, and propose necessary responses in corrective action plans. (iii) Assist PPMO to prepare semi-annual environmental monitoring progress reports for submission to ADB.

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ATTACHMENT 2: EROSION PREDICTION CALCULATIONS

This is a simple calculation, combining the area of sloping land and the area of valley floor flat land involved in the subprojects, with the potential soil erosion modulus for each (from PRC Technical Method Guidelines). The predicted total potential soil erosion is the addition of the two.

Wuyi 200 200 410 54.67 Wufu Wuyishan Zhuzi Ecological Agriculture Co., Tianwei 13000 350 350 410 95.67 Wuyishan Ltd Maochang Dajiang Xiwei 150 150 410 41.00 Diancun 800 800 410 218.66 Sub-total 9 13000 2000 2000 546.66 Baimenlou 743 703 188 40 410 99.04

Daoshi 361 1354 1284 188 70 410 180.06 Hutang 192 182 188 10 410 25.54 Qinmu 265 250 188 15 410 35.43 Shanguan 142 132 188 10 410 19.28 Shuikou 219 209 188 10 410 28.93 Zhima 564 534 188 30 410 75.13 Fujian Zhengyuan Ecological Food Town Co., Paixia 107 101 188 6 410 14.30 Guangze Ltd Meixi 95 89 188 6 410 12.79 Qiaoting 365 345 188 20 410 48.71 Dongshan 742 712 188 30 410 97.44 Pingxi Farm 629 594 188 35 410 84.01 Guanmi 570 534 188 36 410 76.77 Lifang 139 129 188 10 410 18.90 Shicheng 233 218 188 15 410 31.42 Wudun 298 278 188 20 410 40.31 Sub-total 16 361 6657 6294 363 888.06 Pingshan 400 4000 3765 188 235 410 536.11 Meiyang 600 4000 3765 188 235 410 536.11 Neiyang 900 4000 3765 188 235 410 536.11 Ruimei 300 2000 1883 188 117 410 267.98 Keshan 400 3000 2740 188 260 410 414.48 Fujian Datian County Golden Phoenix Datian Heyang 2000 1830 188 170 410 275.82 Agricultural Development Co., Ltd Yangchun 2800 2560 188 240 410 386.45 Jinshan 500 2000 1830 188 170 410 275.82 Wushan 400 3000 2740 188 260 410 414.48 Jiyang 1600 1000 956 188 44 410 131.84 Shangtai 2800 200 180 188 20 410 28.03

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Current soil erosion potential Area of Area of Macro soil Erosion Erosion Potential soil County PIU Village valley slopeland Light soil erosion modulus modulus erosion (t/a) floor (mu) (mu) 2 erosion (mu) 2 (mu) (t/km .a) (t/km .a) Chashan 1500 500 470 188 30 410 67.11 Dashi 600 1500 1415 188 85 410 200.58 Hengkeng 12000 11322 188 678 410 1,604.33 Jikeng 8000 7000 188 1000 410 1,150.66 Zhanshan 1200 Dongban 1700 3000 Shangjing 1700 Gongqiao 400 Sub-total 19 18000 50000 46221 3779 6,825.89 Yangzhong 4726 4564 165 162 410 546.31 Youxi County Yangzhong Xinkaicheng Urban Houlou 2896 2796 170 100 410 344.21 Construction Co., Ltd Longyang 1546 1496 180 50 410 193.18 Lianyang 1030 995 165 35 410 119.02 Sub-total 4 0 10198 9851 347 1,202.72 Youxi Guanyang 1912 1847 170 65 410 227.09 Jishen 2084 2014 175 70 410 254.10 Youxi County Shenlang Edible Oil Co., Ltd Xiacun 14.5 1500 1450 160 50 410 168.33 Huayang 2522 2432 180 90 410 316.44

Sub-total 8 14.5 8018 7743 275 965.96 Sunkeng 2842 2452 185 390 410 409.01 Shibian 1124 974 190 150 410 164.37 Fengshan 2483 2143 186 340 410 358.66 Tianbei 2990 2590 200 400 410 454.66 Qiaotou 1694 1464 200 230 410 258.06 Ninghua State-owned Ecological Forestry Tuanjie 592 512 195 80 410 88.43 Co., Ltd Tiankeng 1060 940 180 120 410 145.60 Nantian 1419 1259 200 160 410 211.60 Jiangjia 1943 1723 190 220 410 278.38 Jiangtou 785 695 170 90 410 103.37 Gongqiao 685 615 170 70 410 88.83 Ninghua Chentang 1183 1053 190 130 410 168.91 Sub-total 12 0 18800 16420 2380 2,729.88 Tianbei 3640 3140 188 500 410 530.21 Fujian Ninghua County Ninghua Science and Zhuyuan 980 846 188 134 410 142.66 Technology Co., Ltd Nantian 890 790 188 100 410 126.35 Sankeng 2080 1847 188 233 410 295.17 Sub-total 4 0 7590 6623 967 1,094.39 Xiaowu 2000 1776 188 224 410 283.82 Fujian Xinxin Rex Rabbit Co., Ltd Lianwu 1000 899 188 101 410 140.28 Sub-total 2 0 3000 2675 325 424.10 Wazhuang 1360 1222 188 138 410 190.88 Fujian Chunhui Tea Co., Ltd Xiasha 1623 1472 188 151 410 225.76

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Banxi 1219 1106 188 113 410 169.50 Fujian Cuiyun Tea Co., Ltd Wazhuang 1280 1150 188 130 410 179.66 Sub-total 2 0 2499 2256 243 349.17

Lianshe 1100 998 188 102 410 152.96 Fujian Jinxi Tea Co., Ltd Zhongsha 1400 1270 188 130 410 194.70 Loujia 1200 1088 188 112 410 166.97 Sub-total 3 0 3700 3356 344 514.64 Jiangtou 1100 977 188 123 410 156.07 Fujian Houde Agro-forestry Ecological Co., Xibei 3000 2664 188 336 410 425.72 Ltd Pingshang 5500 5112 188 388 410 746.75 Sub-total 3 0 9600 8753 847 1,328.54 Guzhu 4722 841 806 188 35 410 110.58 Xikou 1566 853 817 188 36 410 112.24 Longyu Ecological Industry Development Co. Jiaotang 1537 1898 1819 188 79 410 249.57 Yongding Ltd Hongkeng 1348 2091 2003 188 88 410 275.09 Liulian 2231 1819 1743 188 76 410 239.23 Gaobei 1741 1655 1586 188 69 410 217.64 Sub-total 6 13145 9157 8774 383 1,204.35 Zhongxin 1441 1200 1150 188 50 410 157.80 Zhongxi 4041 465 446 188 19 410 61.09 Longyan Greenland Ecological Agriculture Renhe 4022 1540 1476 188 64 410 202.48 Xinluo Development Co. Ltd Xiangshan 2690 1820 1744 188 76 410 239.35 Baofeng 1753 0 0.00 Yangdong 2810 0 0.00 Sub-total 6 16757 5025 4816 209 660.73 Meishan 3528 3244 188 284 410 484.20 Sankeng 2635 2423 188 212 410 361.63 Fujian Xinghe Investment Development Co. Nanhu 510 470 188 40 410 69.84 Pinghe Ltd Xilin 2679 2463 188 216 410 367.73 Dongkeng 4463 4103 188 360 410 612.64 Sub-total 5 0 13815 12703 1112 1,896.04 Xiaban 2663 2477 188 186 410 361.29 Fujian Hongsheng Gardening Co. Ltd Hechun 2386 2220 188 166 410 323.61 Hua'an Gehou 427 0 0.00 Sub-total 3 427 5049 4697 352 684.90 Zhanyang 2206 2099 188 107 410 292.32 Fujian New Tan Yang Tea Industry (Group) Qianshiting 1117.6 1025 188 93 410 153.83 Fu'an Co., Ltd Keyang 1676.4 1536 188 140 410 230.83 Sub-total 3 0 5000 4660 340 676.98 Wushanli 435 435 188 54.52 Jiaocheng Fujian Lvyin Agriculture Co., Ltd Lingyangtou 3521 3521 188 441.29

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Current soil erosion potential Area of Area of Macro soil Erosion Erosion Potential soil County PIU Village valley slopeland Light soil erosion modulus modulus erosion (t/a) floor (mu) (mu) 2 erosion (mu) 2 (mu) (t/km .a) (t/km .a) Jishan 345 345 410 Handan 419 419 188 52.51 Hongmengli 438 438 188 54.90 Sub-total 5 0 5158 4813 345 603.22 Ningde Baimashan Tea Co. Ltd Aoli 2000 1909 188 91 410 264.13

Sub-total 26 0 2000 1909 91 264.13 Hongkeng 0 0.00 Danchi 12200 11741 188 459 410 1,596.98 Fujian Jianye Agro-forestry Comprehensive Shakengli 2500 2406 188 94 410 327.24 Zherong Investment Co. Ltd Chenjiashan 0 0.00 Shuanggangyang 0 0.00 Shishan 500 0 0.00 Sub-total 6 500 14700 14147 553 1,924.22 Linxiayang 2000 1909 188 91 410 264.13 Wuqu 1500 1405 188 95 410 202.06 Ningde Qilongxiang Agriculture Co. Ltd Dahan 500 468 188 32 410 67.40 Dongqiao Nan'an 1000 937 188 63 410 134.66 Hualong 1000 937 188 63 410 134.66 Sub-total 5 0 6000 5656 344 802.90 Total 26,213.60

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ATTACHMENT 3: INFORMATION ON THE SAMPLING OF BASELINE WATER AND SOIL QUALITY

WATER SAMPLING AND ANALYSIS INFORMATION

County PIU Sampling date Site Agency

Wuyishan Zhuzi Ecological Agriculture Food production area Wuyishan 2014.8.16 Co., Ltd Economic crops planting area Fujian Zhengyuan Ecological Food Town Guangze County Lifang Township Fujian Inspection and Research Institute for Guangze 2015.5.27 Co., Ltd Guanmi Village Product Quality 2014.11.18-2014.11. Organic tea base for Datian County Fujian Datian County Golden Phoenix 26 Gaofeng Tea Industry Co.,Ltd Datian Shanghai Pony Test Technical Co.,Ltd Agricultural Development Co., Ltd 2014.11.10-2014.11. Organic tea base for Datian County 19 Jiulongfeng Tea Industry Co.,Ltd Yangzhong Town Jishen Village A Yangzhong Town Jishen Village B Yangzhong Town Jishen Village C Yangzhong Town Jishen Village D Youxi County Yangzhong Xinkaicheng Chengguan Town Xiacun Village A Zhangzhou Agricultural Inspection Test 2014.11.07 Urban Construction Co., Ltd Chengguan Town Xiacun Village B Centre Yangzhong Town Guanyang Village A Yangzhong Town Guanyang Village B Zhongxian Township Huayang Village A Zhongxian Township Huayang Village B Youxi Yangzhong Town Yangzhong Village A Yangzhong Town Yangzhong Village B Yangzhong Town Houlou Village A Yangzhong Town Houlou Village B Youxi County Shenlang Edible Oil Co., Yangzhong Town Houlou Village C Youxi County Environmental Protection 2015.10.28 Ltd Yangzhong Town Houlou Village D Agency Yangzhong Town Longyang Village A Yangzhong Town Longyang Village B Yangzhong Town Lianyang Village A Yangzhong Town Lianyang Village B

114

County PIU Sampling date Site Agency

Ninghua State-owned Ecological Huaitu Town Forestry Co., Ltd Fujian Ninghua County Ninghua Science Shibi Town Fujian Chuangtou Environmental Testing and Technology Co., Ltd 2015.9.12 Co.,Ltd Ninghua Fujian Chunhui Tea Co., Ltd Hucun Town Fujian Cuiyun Tea Co., Ltd Zhongsha Township Fujian Jinxi Tea Co., Ltd Caofang Township Fujian Houde Agro-forestry Ecological

Co., Ltd Liulian Longyu Ecological Industry Yongding Xikou Development Co. Ltd Fengxia Longyan Greenland Ecological Fujian Inspection and Research Institute for Xinluo Agriculture Development Co. Ltd Product Quality Pinghe County Sandun Forestry Centre T2 Fujian Xinghe Investment Development Pinghe 2015.10.17 Xiaoxi Town Xilin Village and Lianguang Shenzhen Qinghua Huanke Testing Co.,Ltd Co. Ltd Village area T1 Jiufeng Town Sankeng Village area T3 Jiulongjiang North Creek (W1, 1km downstream)

Jiulongjiang North Creek (W2, 2km Hua'an Fujian Hongsheng Gardening Co. Ltd 2015.11.10 to 11.12 Shenzhen Qinghua Huanke Testing Co.,Ltd downstream)

Jiulongjiang North Creek (W3, 5km downstream) Chengyang Town Gaoban Tea

Plantation Tea Garden Shekou Town Tanyang Tea Plantation Fu'an Fujian Farms Agribusiness Tea Co., Ltd 2015.10.18 Tea Garden Songluo Township Wangjia Tea

Plantation Tea Garden JiaoCheng Fujian Lyin Agriculture Co., Ltd 2015.11.11 Dingtou Reservoir Fujian Zhongke Environmental Testing

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County PIU Sampling date Site Agency

500m upstream of Huotong Creek Technology Co., Ltd 3000m downstream of Houtong Creek Irrigation Water in the project site 1 Irrigation Water in the project site 2 Irrigation Water in the project site 3 Fujian Entry&Exit Inspection and Quarantine Dongqiao Ningde Qilongxiang Agriculture Co. Ltd 2014.6.25 Qiandiping Base Bureau Inspection and Quarantine Testing Center

SOIL SAMPLING AND ANALYSIS INFORMATION Project Project Implementing Unit Sampling date Site Agency County Wuyishan Zhuzi Ecological Food production area Wuyishan 2014.8.16 Agriculture Co., Ltd Economic crops planting area Fujian Zhengyuan Fujian Inspection and Research Institute Guangze Ecological Food Town Co., 2015.5.27 Guangze County Lifang Township Guanmi Village for Product Quality Ltd Organic tea base for Datian County Gaofeng Tea Industry Fujian Datian County 2014.11.18-2014.11.26 Co.,Ltd Datian Golden Phoenix Agricultural Shanghai Pony Test Technical Co.,Ltd Organic tea base for Datian County Jiulongfeng Tea Development Co., Ltd 2014.11.10-2014.11.19 Industry Co.,Ltd Yangzhong Town Jishen Village A Yangzhong Town Jishen Village B Yangzhong Town Jishen Village C Yangzhong Town Jishen Village D Youxi County Yangzhong Chengguan Town Xiacun Village A Zhangzhou Agricultural Inspection Test Xinkaicheng Urban 2014.11.07 Chengguan Town Xiacun Village B Centre Youxi Construction Co., Ltd Yangzhong Town Guanyang Village A Yangzhong Town Guanyang Village B Zhongxian Township Huayang Village A Zhongxian Township Huayang Village B Youxi County Shenlang Yangzhong Town Yangzhong Village A Youxi County Environmental Protection 2015.10.28 Edible Oil Co., Ltd Yangzhong Town Yangzhong Village B Agency

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Project Project Implementing Unit Sampling date Site Agency County Yangzhong Town Houlou Village A Yangzhong Town Houlou Village B Yangzhong Town Houlou Village C Yangzhong Town Houlou Village D Yangzhong Town Longyang Village A Yangzhong Town Longyang Village B Yangzhong Town Lianyang Village A Yangzhong Town Lianyang Village B Ninghua State-owned Huaitu Town Ecological Forestry Co., Ltd Fujian Ninghua County Ninghua Science and Shibi Town Fujian Chuangtou Environmental 2015.9.12 Technology Co., Ltd Testing Co.,Ltd Ninghua Fujian Chunhui Tea Co., Ltd Hucun Town Fujian Cuiyun Tea Co., Ltd Zhongsha Township Fujian Jinxi Tea Co., Ltd Caofang Township Fujian Houde Agro-forestry

Ecological Co., Ltd Liulian Longyu Ecological Industry Yongding Xikou Development Co. Ltd Fengxia Longyan Greenland Fujian Inspection and Research Institute Xinluo Ecological Agriculture for Product Quality Development Co. Ltd Pinghe County Sandun Forestry Centre T2 Fujian Xinghe Investment Shenzhen Qinghua Huanke Testing Pinghe 2015.10.17 Xiaoxi Town Xilin Village and Lianguang Village area T1 Development Co. Ltd Co.,Ltd Jiufeng Town Sankeng Village area T3 Huafeng Town Area T1 Makeng Area T2 Fujian Hongsheng Hua'an 2015.11.12 Makeng Area T3 Gardening Co. Ltd Makeng Area T4 Shenzhen Qinghua Huanke Testing Makeng Area T5 Co.,Ltd Chengyang Town Gaoban Tea Plantation Tea Garden Fujian Farms Agribusiness Fu'an 2015.10.18 Shekou Town Tanyang Tea Plantation Tea Garden Tea Co., Ltd Songluo Township Wangjia Tea Plantation Tea Garden

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Project Project Implementing Unit Sampling date Site Agency County Fujian Entry&Exit Inspection and Ningde Qilongxiang Dongqiao 2014.6.25 Qiandiping Base Quarantine Bureau Inspection and Agriculture Co. Ltd Quarantine Testing Center

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ATTACHMENT 4: FUJIAN GOVERNMENT LIST OF APPROVED PESTICIDES AND APPLICATIONS

Note: Three of the listed chemicals (omethoate, trizophos and dichlorvos) are listed as ‘highly hazardous’ by the World Health Organization and are excluded from use in the project.

农作物病虫害 Diseases and 安全期 Safe 农药名称 Name of pestcide 用量 Usage Remarks Crops insect pests period 2500-3000 倍液 attenuation 对 3 龄前幼虫可用 using on larva before 3rd 0.2%阿维菌素 0.2% Abamectin 2500-3000 times for instar 毒蛾 Porthesia similis spraying 10%联苯菊酯乳油 3300-10000 倍液喷雾 attenuation 3000-10000 50-70 kg/mu 10% Bifenthrin emulsifiable concentration times for spraying 3%敌百虫粉 3% Dipterex powder 2 kg/mu 2000-4000 倍液 attenuation 9%敌百虫 9% Dipterex 尺蛾 Geometridae 2000-4000 times for spraying 10%联苯菊酯乳油 3300-10000 倍液喷雾 attenuation 3300-10000 50-70 kg/mu 10% Bifenthrin emulsifiable concentration times for spraying 200-300 倍液喷雾油茶象 Curculio 8%绿色威雷 8% Cypermethrin attenuation 200-300 times Chinensis Cheveolat for spraying 黑跗眼天牛 Chrenoma 300 倍液喷雾 attenuation 8%绿色威雷 8% Cypermethrin 油茶 Tea-oil Atritarsis Picard 300 times for spraying camellia tree 20%扑虱灵可湿性粉剂 1500 倍液 attenuation 1500 在粉虱零星发生时连续 2-3 次 continuous use 10 days 20% Buprofezin wettable powder times for spraying two to three times when Aleyrodidae happenes 1000 倍液 attenuation 1000 在粉虱零星发生时连续 2-3 次 continuous use 25%灭螨猛乳液 25% chinomethionate latex 10 days times for spraying two to three times when Aleyrodidae happenes 3000-4000 倍液 attenuation 20%吡虫啉可溶剂 1-2 龄时施药 use it when the pest at 1st or 2nd 3000-4000 times for for 20% Imidacloprid soluble granule instar spraying 20%灭扫利乳油 2000 倍液 attenuation 2000 1-2 龄时施药 use it when the pest at 1st or 2nd 茶油粉虱 Aleyrodidae 20% Fenpropathrin emulsifiable concentration times for spraying instar 10%扑虱灵乳油 1000 倍液 attenuation 1000 1-2 龄时施药 use it when the pest at 1st or 2nd

10% Buprofezin emulsifiable concentration times for spraying instar 含油 0.4%-0.5%的矿物油乳液混合上述药剂 0.4%-0.5% Mineral oil mix all the pestcide above 25%亚胺硫磷乳油 2000 倍液 attenuation 2000 6 月下旬到 7 月幼虫孵化后 after the larva

25% Phosemet emulsifiable concentration times for spraying incubation from the end of June to begin of July

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农作物病虫害 Diseases and 安全期 Safe 农药名称 Name of pestcide 用量 Usage Remarks Crops insect pests period 50%马拉松乳油 6 月下旬到 7 月幼虫孵化后 after the larva

50% Marathon emulsifiable concentration incubation from the end of June to begin of July 3300-10000 倍液喷雾 10%联苯菊酯乳油 attenuation 3300-10000 10% Bifenthrin emulsifiable concentration times for spraying 茶蚕 Andrcwa 10%吡虫啉可湿性粉剂 1500 倍液 attenuation 1500 连续 2-3 次 continuous use bipunctata Walker 10% Imidacloprid wettable powder times for spraying two to three times 40%氧化乐果乳油 30-60 ml/mu 1000 倍液喷雾 attenuation 1000 times spray 40% Omethoate emulsifiable concentration 10%联苯菊酯乳油 3300-10000 倍液喷雾 attenuation 3300-10000 50-70 kg/mu 10% Bifenthrin emulsifiable concentration times spray 茶梢尖蛾 10%吡虫啉可湿性粉剂 1500 倍液 attenuation 1500 连续 2-3 次 continuous use Parametriotes theae 10% Imidacloprid wettable powder times for spraying two to three times Kuznetzov 40%氧化乐果乳油 30-60 ml/mu 1000 倍液喷雾 attenuation 1000 times spray 40% Omethoate emulsifiable concentration 绿磷象甲 Hypomeces 90%敌百虫 90% Dipterex squamosus Fabricius 棉褐带卷蛾 2000 倍液 attenuation 2000 50%敌马合剂 Adoxophyes orana times for spraying (Fischer von 8000-10000 倍液喷雾 attenuation 8000-10000 20%杀灭菊酯 20% Fenvalerate 10-20 ml/mu Roslerstamm) times for spraying 25%噻虫嗪水分散粒剂每季最多使用 4 次 Maximum use four times 4-6 g/ mu 3 days 25% Thiamethoxam water dispersible granule every quarter 25 g/L 联苯菊酯乳油每季最多使用 1 次 Maximum use once every 80-100 ml/mu 7 days 25 g/L Bifenthrin emulsifiable concentration quarter 假眼小绿叶蝉 70%吡虫啉水分散粒剂每季最多使用 1 次 Maximum use once every 2-4 g/mu 7 days Empoasca vitis 70% Imidacloprid water dispersible granule quarter 500 g/L 丁醚脲悬浮剂每季最多使用 2 次 Maximum use twice every 100-120 ml/mu 7 days 500 g/L Diafenthiuron suspension concentration quarter 茶树 Tea 150 g/L 茚虫威乳油每季最多使用 1 次 Maximum use once every tree 17-22 ml/mu 10 days 150 g/L Indoxacarb emulsifiable concentration quarter 250 g/L 溴氰菊酯乳油每季最多使用 1 次 Maximum use once every 10-20 ml/mu 5 days 250 g/L Deltamethrin emulsifiable concentration quarter 黑刺粉虱 25 g/L 联苯菊酯乳油每季最多使用 1 次 Maximum use once every 80-100 ml/mu 7 days Aleurocanthus 25 g/L Bifenthrin suspension concentration quarter spiniferus (Quaintanca) 32%联苯·噻虫嗪悬浮剂每季最多使用 1 次 Maximum use once every 32% Diphenyl·Thiamethoxam suspension 20-30 ml/mu 7 days quarter concentration

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农作物病虫害 Diseases and 安全期 Safe 农药名称 Name of pestcide 用量 Usage Remarks Crops insect pests period 喷药期间，应每隔十分钟搅拌一次。药液应均匀喷施于叶面、叶背、新梢、枝条和果实的表面 stir 99%矿物油乳油 300-500 ml/mu every ten minutes when using the pestcide. 橙瘿螨 Acaphylla theae 99% Mineral oil emulsifiable concentration The liquid should be sprayed on the surface, Watt back,new-tip,branch and the fruit evenly 0.5%藜芦碱可溶液剂每季最多使用 3 次 Maximum use three times 83-111 ml/mu 7 days 0.5% Veratrine soluble granule every quarter 在成虫出土盛末期施药,兑适量水采用低容量蓬面扫喷为宜；每季最多使用 1 次 using it when adult 丽纹象甲 Myllocerinus 25 g/L 联苯菊酯乳油 100-140 g/mu 7 days coming up at late stage, evenly spray with right aurolineatus Voss 25 g/L Bifenthrin emulsifiable concentration amount of water; Maximum use once every quarter 25%高效氯氟氰菊酯水乳剂每季最多使用 1 次 Maximum use once every 40-80 ml/mu 7 days 25% Lambda-Cyhalothrin emulsion in water quarter 25 g/L 联苯菊酯乳油每季最多使用 1 次 Maximum use once every 30-40 ml/mu 7 days 尺蠖 Geometridae 25 g/L Bifenthrin emulsifiable concentration quarter 茶核·苏云菌悬浮剂兑适量水均匀喷雾 evenly spray with suitable Tea core·Bacillus thuringiensis suspension 100-150 ml/mu amount of water concentration 200-400 倍液喷雾苏云金杆菌悬浮剂 attenuation 200-400 times 均匀喷雾 evenly spary 8000 IU/mg 茶毛虫 Euproctis 8000 IU/mg Bacillus thuringiensis suspension for spraying concentration 每季最多使用 1 次 Maximum use once every pseudoconspersa 30-40 ml/mu 7 days Strand quarter 0.3%印楝素乳油每季最多使用 3 次 Maximum three times every 120-150 ml/mu 7 days 0.3% Toosedarir emulsifiable concentration quarter 1.5%多抗霉素可湿性粉剂 150 倍液喷雾 attenuation 每季最多使用 3 次 Maximum three times every 7 days 茶饼病 Tea blister 1.5% Polyoxin wettable powder 150 times for spraying quarter blight 3%多抗霉素可湿性粉剂 300 倍液喷雾 attenuation 每季最多使用 3 次 Maximum three times every 7 days 3% Polyoxin wettable powder 300 timesfor spraying quarter 250 g/L 吡唑醚菌酯乳油 1000-2000 倍液喷雾每季最多使用 2 次 Maximum use twice every 250 g/L Pyraclostrobin emulsifiable attenuation 1000-2000 times 21 days quarter concentration for spraying 1000-1500 倍液喷雾炭疽病 Anthracnose 10%苯醚甲环唑水分散粒剂每季最多使用 3 次 Maximum three times every attenuation 1000-1500 times 14 days 10% Difenoconazole water dispersible granule quarter for spraying 75%百菌清可湿性粉剂 600-800 倍液喷雾兑适量水均匀喷雾；每季最多使用 3 次 even 21 days 75% Chlorothalonil wettable powder attenuation 600-800 times spray with suitable amount of wate; Maximum

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农作物病虫害 Diseases and 安全期 Safe 农药名称 Name of pestcide 用量 Usage Remarks Crops insect pests period for spraying use three times every quarter 20%氟苯虫酰胺悬浮剂 5-10 g/mu 14 days 每季最多使用 1 次 Maximum once every quarter 20% Flubendiamide suspension concentration 1%甲氨基阿维菌素苯甲酸盐乳油每季最多使用 3 次 Maximum three times every 二化螟 Chilo 1% Emamectin BenzoateR emulsifiable 75-100 ml/mu 14 days quarter suppressalis (Walker) concentration 24%甲氧虫酰肼悬浮剂每季最多使用 2 次 Maximum twice every 24% Methoxyfenozide suspension 19-28 ml/mu 60 days quarter concentration 200 g/L 氯虫苯甲酰胺悬浮剂 200 g/L Chlorantraniliprole suspension 5-10 ml/mu 7 days 每季最多使用 2 次 Maximum twice every quarter concentration 三化螟 Tryporyza 20%三唑磷乳油 incertulas (walker) 120-150 ml/mu 30 days 每季最多使用 2 次 Maximum twice every quarter 20% Triazophos emulsifiable concentration 480 g/L 毒死蜱乳油 480 g/L Chlorpyrifos 每季最多使用 3 次 Maximum three times every 80-100 ml/mu 30 days emulsifiable concentrate quarter 25%吡蚜酮可湿性粉剂每季最多使用 1 次 Maximum use once every 24-50 g/mu 21 days 稻飞虱 Nilaparvata 25% Pymetrozine wettable powder quarter 25%噻虫嗪水分散粒剂 lugens/Sogatella 2-4 g/mu 28 days 每季最多使用 2 次 Maximum twice every quarter 水稻 Rice furcifera/Laodelphax 25% Thiamethoxam water dispersible granule striatellus 50%烯啶虫胺可溶粒剂 2-4 g/mu 21 days 每季最多使用 2 次 Maximum twice every quarter 50% Nitenpyram soluble granule 1.8%阿维霉素乳油 30-40 ml/mu 14 days 每季最多使用 2 次 Maximum twice every quarter 1.8% Abamectin emulsifiable concentration 稻纵卷叶螟 20%氟苯虫酰胺悬浮剂每季最多使用 1 次 Maximum use once every 6.7-10 g/mu 14 days Cnaphalocrocis 20% Cyantraniliprole suspension concentration quarter medinalis Guenee 5%甲氨基阿菌霉素苯甲酸盐悬浮剂每季最多使用 3 次 Maximum three times every 5% Emamectin BenzoateR emulsifiable 12-15 ml/mu 14 days quarter concentration 75%三环唑可湿性粉剂 25-30 ml/mu 21 days 每季最多使用 2 次 Maximum twice every quarter 75% Tricyclazole wettable powder 20%稻瘟酰胺悬浮剂每季最多使用 3 次 Maximum three times every 50-67 ml/mu 21 days 稻瘟病 Pyricularia 20% Fenoxanil suspension concentration quarter grisea(Cooke)Sacc./Pyr 14 days（早在早稻上使用每季最多使用 3 次；在晚稻上使用 icularia oryzae Cav. 稻） 40%稻瘟灵乳油每季最多使用 2 次 Maximum use three times 75-112.5 ml/mu early(season 40% Isoprothiolane emulsifiable concentration )rice 28 days every quarter on the early rice and Maximum use twice every quarter （晚稻） late

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农作物病虫害 Diseases and 安全期 Safe 农药名称 Name of pestcide 用量 Usage Remarks Crops insect pests period rice 30%苯甲·丙环唑乳油每季最多使用 3 次 Maximum three times every 20-25 ml/mu 35 days 30% Propiconazole emulsifiable concentration quarter 纹枯病 Thanatephorus 5%己唑醇悬浮剂每季最多使用 3 次 Maximum three times every 80-100 ml/mu 30 days cucumeris (Frank) Donk 5% hexaconazole suspension concentration quarter 20%井冈霉素可溶粉剂每季最多使用 2 次 Maximum use twice every 30-50 g/mu 14 days 20% Validamycin soluble granule quarter 430 g/L 戊唑醇悬浮剂每季最多使用 3 次 Maximum three times every 430 g/L Tebuconazole suspension 10-15 ml/mu 35 days quarter concentration 稻曲病 Ustilaginoidea 12.5%氟环唑悬浮剂每季最多使用 2 次 Maximum use twice every oryzae（Patou.） 40-50 ml/mu 21 days 12.5% Epoxiconazole suspension concentration quarter 10%己唑醇悬浮剂每季最多使用 2 次 Maximum use twice every 35-50 ml/mu 45 days 10% Hexaconazole suspension concentration quarter 50%氯溴异氰尿酸可溶粉剂每季最多使用 3 次 Maximum three times every 50% Chloroisobromine cyanuric acid soluble 40-60 g/mu 7 days quarter granule 细菌性条斑病 Rice 20%噻菌铜悬浮剂每季最多使用 3 次 Maximum three times every bacterial leaf streak 20% Thiediazole copper suspension 125-160 ml/mu 15 days quarter concentration 1.2%辛菌胺醋酸盐水剂每季最多使用 3 次 Maximum three times every 130-160 ml/mu 14 days 1.2% Iminoctadine triacetate aqueoussolution quarter 2000-2500 倍 attenuation 红蜘蛛 red spider 2%阿维菌素 2% Abamectin 2000-2500 times for spraying 1000 倍 attenuation 1000 花蕾咀 bud tip 敌敌畏 Dichlorvos times for spraying 1000 倍 attenuation 1000 蚜虫 Aphidoidea 3%啶虫眯 3% Acetamiprid times for spraying 500 倍 attenuation 500 times 蜜柚 Pomelo 70%托布津 70% Thiophanate-methyl for spraying 炭疽病 anthracnose 500 倍 attenuation 500 times 50%多菌灵 50% carbendazim for spraying 先将腐烂树皮切除干净，然后用托布津和新鲜无杂质黄土搅拌成糊状涂在患病部位。 First, cut 脚腐病 Phytophthora 托布津 Thiophanate-methyl the barks which are rot, and then mix parasitica (Dastur) Thiophanate-methyl and loess inclusion-free like pasty and paint on the the body that has become

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农作物病虫害 Diseases and 安全期 Safe 农药名称 Name of pestcide 用量 Usage Remarks Crops insect pests period diseased 2.5%高效氯氟氰菊酯水乳剂每季最多使用 2 次 Maximum use twice every 12-17 ml/mu 3 days 2.5% Lambda-Cyhalothrin emulsion in water quarter 10%氟啶虫酰胺水分散粒剂每季最多使用 2 次 Maximum use twice every 30-50 g/mu 7 days 10% Flonicamid water dispersible granul quarter 用水稀释后喷雾到种薯上充分搅拌，直到药液均蚜虫 Aphidoidea 匀分布到种薯表面，晾干后即可。每季最多使用每 100 kg 种薯用 70%噻虫嗪种子处理可分散粉 1 次 attenuation the pestcide with water and stir 剂 70% Thiamethoxam powder for dry seed 10-40 g them with potato seeds until the liquid distribute treatment water dispersible powder for slurry seed treatment in every 100kg potato seeds uniformity on the surface of the potato seeds and wait them dry. Maximum use once every quarter 兑适量水调成浆状药液，与种薯充分搅拌，直到药液均匀分布到种薯表面，晾干后即可。每季最每 100 kg 种薯用 600 g/L 吡虫啉悬浮种衣剂 600 蛴螬 Holotrichia 多使用 1 次 uniformity spray with right amount of 马铃薯 g/L Imidacloprid suspension concentration for 40-50 ml diomphalia Bates water and make them to pasty, stir them with Potato seed dressing in every 100kg potato seeds potato seeds until the liquid distribute uniformity on the surface of the potato seeds and wait them dry.Maximum use once every quarter 80%代森锰锌可湿性粉剂每季最多使用 3 次 Maximum three times every 120-180 g/mu 3 days 80% Mancozeb wettable powder quarter 晚疫病 Phytophthora 500 g/L 氟啶胺悬浮剂每季最多使用 4 次 Maximum use four times 27-33 ml/mu 7 days infestans 500 g/L Fluazinam suspension concentration every quarter 250 g/L 醚菌酯悬浮剂 250 g/L Kresoxim-methy 每季最多使用 3 次 Maximum three times every 15-20 ml/mu 7 days suspension concentration quarter 环腐病 Clavibacter 药液均匀喷雾到种薯表面，晾干后即可。每季最每 100 kg 种薯用 70%敌磺钠可溶粉剂 70% michiganense 300g 粉剂兑水 700ml 300g 多使用 1 次 uniformity spray on the surface of Fenaminosulf soluble granule in every 100kg subsp.sepedonicum powder in 700ml water the potato seeds and waiting it dry; Maximum potato seeds （Spieckermann&Kotth use once every quarter off）Davis，Gillaspie， 36%甲基硫菌灵悬浮剂 36% 800 倍液浸种薯 attenuation 晾干播种；每季最多使用 1 次 seed them when

Vidaver and Harris. Thiophanate-Methyl suspension concentration 800 times with potato seeds they are dry; Maximum use once every quarter Source: Fujian Provincial Department of Agriculture, May 2015.

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ATTACHMENT 5: WATER DEMAND AND SUPPLY ANALYSIS

1. Overview. Fujian Province possesses 663 rivers, with a total length of 13,569 km in the province and a drainage density of 112 m/km2. There are more than 597 rivers with over 50 km2 catchment area, with a total area of 112,842 km2 and total mainstream length of 3,134 km. There are 67 first-grade rivers and five rivers with over than 5,000 km2 catchment area. The main rivers and river systems: Min, Jiulong, Jin, Ting, Jiao are the relatively large river in the Province. The largest river in Fujian is Min River, and Ting River is the only river that flowing into the oceanthrough other province.

2. Water resource characteristics. Uneven spatial and temporal distribution of precipitation. The annual average rainfall in Fujian is 1,667 mm, from northwest to southeast, gradually decreasing from 2,200 mm-1,600 mm. Annual average runoff is 500-1,400 mm. Annual average precipitation during rainy season from March to September accounted for 82.5% of the average annual precipitation, while the five-month from dry season in October to the next February', the rainfall accounted for only 17.5% of the annual precipitation. The rainfall in spring rainy season (March-April), rainy season (May-June), summer (July to September), dry season rainfall (October to next February) is accounting for 16 -27%, 27-37%, 20-30%, 14-22% 33 respectively against the annual average rainfall (Figure A5.1).

35.00

30.00

25.00

20.00

15.00

10.00

5.00

Proportions (%) (%) Proportions 0.00 Spring Rainy season Rainy Season ( 5-6) Summer Season ( 7-9) 10-2 of Next Year (3-4) Seasons Figure A5.1: Annual average rainfall seasonally distribution in Fujian

3. Fujian is abundant in water resources. It has a subtropical marine monsoon climate, backed to the fills and closed to ocean with sufficient rainfall and humidity. The main water resources in Fujian come from precipitation with a total amount of 116.87 billion m3, the per capita water resource is 3,769 m3, which is about 1.64 times against the national level. The unit water resource amount is 6,387 m3, which is 3.32 times against the national average level.

4. Project infrastructure involving water resources. In the project, it involves valley floor rehabilitation in 6 project counties of 5 municipalities, namely Zherong County in Ningde Municipality, Datian County in Sanming Municipality, Yongding County and Xinluo District in Longyan Municipality, Guangze County and Wuyishan in Nanping Municipality. Since the valley floor such as farmland is near to creaks and rivers, which could provide abundant water resources. Other project areas have already constructed some drainage ditches and irrigation projects. However, without sufficient input and maintenance and management, most of the infrastructure has already been out of date. Currently, most of the project areas have no high standard water conservancy key projects, but some simple dirt ditches for water distribution. For those project areas without streams and rivers go through, agricultural farming essentially depends on the natural condition. In order to expand the water extraction capacity, and supply to farmland in relatively high position, changing the dryland into irrigated farmland, weirs will be constructed in the suitable location of rivers with low-head barrage.

5. Slopeland. Currently, with the investment from the Central to local government authorities, some small amount of tea and tea-oil camellia garden has established sprinkler irrigation and drip irrigation demonstration facilities. Based on local practices, they have conducted terracing project, which converted the original farming mode that would cause water and erosion into contour planting. Water diversion channels, rainfall collection tanks, bamboo joint ditches 34 in terrace have been practiced.

33 Chen Jiajin et al. 2007. Spatial and temporal distribution of agricultural climate resources in Fujian and its impact on agricultural production. China Agricultural Meteorology 28: 1-4. 34 Bamboo joint ditch (called Zhujiegou in Chinese) is one kind of irrigation and drainage works in terrace fields of slope land that created by local people. In Chinese it is named Zhujiegou due to its shape looks like the cutted bamboo joint. It spreads in terrace filelds and parallels to the contour with a gradient of about 1 / 120.

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These practices have helped for water and soil erosion controlling, also improved soil fertility and water holding capacity.

6. Water availability. Inflow analysis and calculation: the inflow of each irrigation area is ensured based on dependability of irrigation designing (frequency), and conduct typical year analysis. Data is searching from project area nearby hydrological station with similar climate and soil condition. According to hydrological data from hydrological stations, typical distribution of runoff during the year under P = 90% has been analyzed, and runoff will be allocated over the year.

7. Annual rainfall of designed level year: average annual rainfall of the project area is collecting from the "Fujian rainfall contour map," "surface water resource in Fujian", and based on the project counties located and rainfall characteristics, the coefficient of variation Cv will be determinde, Coefficient of skew Cs = 2Cv, and the calculation of precipitation under different frequencies can be calculated.

8. Annual inflow of designed level year = average runoff * catchment area * runoff coefficient of modulus, formula as follows: Wp = Kp × F × h × 10 million m3 Where: Wp- annual inflow of designed level year (m3) Kp- runoff coefficient of modulus F- catchment area (km2) h- annual average runoff (mm)

9. The available water supply capacity is calculated based on each ten days natural stream amount. To be more specific, if the ten days natural stream supply capacity is smaller than the designed water extraction capacity for channels, the natural stream will be considered as available water supply capacity (all will be extracted). If the ten days natural stream supply capacity is larger than the designed water extraction capacity for channels, the designed capacity will be considered as available water supply capacity.

10. Water demand. The water demand prediction during the design level year is to be conducted based on the weighted average crop irrigation quota per unit area under designed guarantee rate of irrigation water, which is based on the project land utilization planning, main crops structure adjustment, rotation and intercropping methods, and designed irrigation facilities and multiple cropping index and net crop irrigation quota.

11. The irrigation quota of crops, vegetables and fruit trees was selected based on “Water Quota in Different Industries” (DB35/T 772-2013) that issued by Fujian provincial government according to the classification of project zone I and II, crop types and growing season.

12. Gross water consumption can be calculated based on the irrigation water effective utilization index, and net water demand calculated according to net irrigation quota.

13. Calculations are presented in Tables A6.1–3.

Zhujiegou ditches sequentially connect with setting basins and earth weirs. The top of Bamboo joint ditches is usually 10 cm lower than the ground of terrace to facilitate water slow inflow into the next setting basin. On other side of ditchs is usually connected with the main drainage ditch in the slope garden.

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Table A6.1: Water availability and its monthly distribution in the project area (P = 90%) Gross Annual Water Annual Coefficient Net Irrigation Gross Water Project Variation Skewness water runoff supply Catchment Irrigation runoff of module irrigation water Irrigation irrigation demand implementing Water source 2 coefficient coefficient demand (0'000 capacity area (km ) area (mu) depth ratio (Kp) quota utilization method quota (0'000 3 unit (Cv) (Cs=2Cv) 3 (0'000 m ) (0'000 (mm) (m³/mu) coefficient (m³/mu) m ) 3 3 P=90% m ) P=90% m ) Sprinkler Runoff, stream 3.66 4,649 1200 0.33 0.66 0.57 55 0.9 61.11 25.57 28.41 250.3 250.3 Fujian irrigation Zhengyuan Runoff 978 1200 0.33 0.66 0.57 55 0.95 Micro-irrigation 57.89 5.38 5.66 63.6 63.6 Ecological Food 0.93 Sprinkler Runoff 1,030 1200 0.33 0.66 0.57 55 0.9 61.11 5.67 6.29 63.6 21.1 Town Co., Ltd irrigation Stream 3.66 361 1200 0.33 0.66 0.57 548 0.72 Drainage 761.11 19.78 27.48 250.3 250.3 Wuyishan Zhuzi Stream, Sprinkler 189.79 2,000 1100 0.35 0.7 0.59 55 0.9 61.11 11.00 12.22 Ecological reservoir irrigation 12,317.4 12,317.4 Agriculture Co., Stream 189.79 13,000 1100 0.35 0.7 0.59 592.4 0.71 Drainage 834.37 770.1 1,084.7 Ltd Youxi County Yangzhong Xinkaicheng Runoff 26.2 10,198 946 0.32 0.64 0.62 50 0.86 Piped irrigation 58.14 50.99 59.29 1,536.7 1,536.7 Urban Construction Co., Ltd Sprinkler Youxi County 3,500 946 0.32 0.64 0.62 50 0.9 55.56 17.50 19.44 1,917.9 1,917.9 Runoff 32.7 irrigation Shenlang Edible 4,518 946 0.32 0.64 0.62 50 0.86 Piped irrigation 58.14 22.59 26.27 0.0 661.7 Oil Co., Ltd Runoff, stream 18.6 14.5 946 0.32 0.64 0.62 60 0.7 Drainage 85.71 0.09 0.12 1,090.9 1,090.9 Ninghua 24,105 1000 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 120.53 140.15 840.8 840.8 State-owned Ecological Runoff 14.25 2,395 1000 0.35 0.7 0.59 50 0.95 Micro-irrigation 52.63 11.98 12.61 840.8 260.5 Forestry Co., Ltd Fujian Ninghua Runoff 2,394 1000 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 11.97 13.92 457.3 457.3 County Ninghua Science and 7.75 Runoff 651 1000 0.35 0.7 0.59 50 0.95 Micro-irrigation 52.63 3.26 3.43 457.3 141.7 Technology Co., Ltd Sprinkler Fujian Chunhui 1,360 1000 0.35 0.7 0.59 50 0.9 55.56 6.80 7.56 241.9 241.9 Runoff 4.1 irrigation Tea Co., Ltd 2,094 1000 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 10.47 12.17 241.9 75.0 Fujian Cuiyun Runoff 2.73 1,219 1000 0.35 0.7 0.59 50 0.85 Piped irrigation 58.82 6.10 7.17 161.1 161.1 Tea Co., Ltd Runoff 1.5 1,280 1000 0.35 0.7 0.59 50 0.95 Micro-irrigation 52.63 6.40 6.74 88.5 88.5 Fujian Jinxi Tea Runoff 1.55 2,000 1000 0.35 0.7 0.59 50 0.9 Sprinkler 55.56 10.00 11.11 91.5 91.5

127

Annual Net Irrigation Gross Water Gross Annual Water Project Variation Skewness Coefficient Catchment Irrigation runoff irrigation water Irrigation irrigation demand water runoff supply implementing Water source 2 coefficient coefficient of module area (km ) area (mu) depth quota utilization method quota (0'000 demand (0'000 capacity unit (Cv) (Cs=2Cv) ratio (Kp) 3 3 (mm) (m³/mu) coefficient (m³/mu) m ) (0'000 m ) (0'000 Co., Ltd irrigation m3) m3) Runoff 3.3 1,700 1000 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 8.50 9.88 194.7 194.7 Fujian Houde Agro-forestry Runoff 11.28 9,600 1000 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 48.00 55.81 665.5 665.5 Ecological Co., Ltd Runoff 125.6 21,500 900 0.3 0.6 0.64 50 0.86 Piped irrigation 58.14 107.50 125.00 7,234.6 7,234.6 Fujian Datian Runoff 20.65 3,500 900 0.3 0.6 0.64 50 0.86 Piped irrigation 58.14 17.50 20.35 1,189.4 1,189.4 County Golden Sprinkler Runoff 38.3 5,000 900 0.3 0.6 0.64 50 0.9 55.56 25.00 27.78 2,206.1 2,206.1 Phoenix irrigation Agricultural Runoff 75.6 16,500 900 0.3 0.6 0.64 50 0.86 Piped irrigation 58.14 82.50 95.93 4,354.6 4,354.6 Development Sprinkler Runoff 30.5 3,500 900 0.3 0.6 0.64 50 0.9 55.56 17.50 19.44 1,756.8 1,756.8 Co., Ltd irrigation Runoff, stream 82.5 18,000 900 0.3 0.6 0.64 735 0.7 Drainage 1050.00 1323.00 1890.00 4,752.0 4,752.0 Stream 8,395 568 0.7 Drainage 811.43 476.84 681.19 Longyu Stream 598 568 0.95 Micro-irrigation 597.89 33.97 35.75 98.1 904 0.35 0.7 0.59 5,232.3 5,232.8 Ecological Stream 10 568 0.95 Micro-irrigation 597.89 0.57 0.60 Industry Stream 4,140 568 0.86 Piped irrigation 660.47 235.15 273.43 Development Runoff 19.9 5,565 904 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 27.83 32.35 1,061.4 1,061.5 Co. Ltd Sprinkler Runoff 74.3 3,592 904 0.35 0.7 0.59 50 0.9 55.56 17.96 19.96 3,962.9 3,963.3 irrigation Runoff, stream 12,008 509 0.72 Drainage 706.94 611.21 848.90 Runoff, stream 2,000 509 0.72 Drainage 706.94 101.80 141.39 Longyan Runoff, stream 129 2,690 1104 0.35 0.7 0.59 509 0.72 Drainage 706.94 136.92 190.17 8,402.5 8,402.5 Greenland Runoff, stream 1,864 509 0.72 Drainage 706.94 94.88 131.77 Ecological Runoff, stream 200 509 0.95 Drip irrigation 535.79 10.18 10.72 Agriculture Development Runoff 1.5 1,820 1104 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 9.10 10.58 97.7 97.7 Co. Ltd Runoff 1.55 1,100 1104 0.35 0.7 0.59 50 0.86 Piped irrigation 58.14 5.50 6.40 101.0 101.0 Sprinkler Runoff 1.2 100 1104 0.35 0.7 0.59 50 0.9 55.56 0.50 0.56 78.2 78.2 irrigation Sprinkler Runoff 6,651 1100 0.3 0.6 0.64 55 0.86 63.95 36.58 42.54 195.7 195.7 Fujian Xinghe irrigation 2.78 Investment Sprinkler Runoff 3,428 1100 0.3 0.6 0.64 55 0.86 63.95 18.85 21.92 195.7 195.7 Development irrigation Co. Ltd Runoff 6,328 1100 0.3 0.6 0.64 50 0.95 Drip irrigation 52.63 31.64 33.31 352.0 352.0 5 Runoff 12,691 1100 0.3 0.6 0.64 32.5 0.95 Drip irrigation 34.21 41.25 43.42 352.0 352.0 Fujian Sprinkler Runoff 3.5 3,210 1200 0.27 0.54 0.675 50 0.9 55.56 16.05 17.83 283.5 283.5 Hongsheng irrigation

128

Table A6.1 (continued) Water supply Water supply Project implementing unit 3 capacity (0'000 m ) 1 2 3 4 5 6 7 8 9 10 11 12 250.3 16.32 11.94 40.51 39.10 39.10 24.26 12.27 19.28 11.57 14.47 10.64 10.89 Fujian Zhengyuan Ecological Food Town 63.6 4.15 3.03 10.29 9.94 9.94 6.16 3.12 4.90 2.94 3.68 2.70 2.77 Co., Ltd 21.1 0.34 0.90 2.30 0.58 9.70 2.96 0.94 1.34 0.50 0.84 0.32 0.39 250.3 16.32 11.94 40.51 39.10 39.10 24.26 12.27 19.28 11.57 14.47 10.64 10.89 Wuyishan Zhuzi Ecological Agriculture Co., 12,317.4 209.40 505.01 911.49 2771.41 3781.43 1638.21 566.60 763.68 221.71 541.96 197.08 209.40 Ltd Youxi County Yangzhong Xinkaicheng 1,536.7 73.76 36.88 99.88 67.61 225.89 110.64 201.31 278.14 141.37 158.28 73.76 69.15 Urban Construction Co., Ltd 1,917.9 92.06 46.03 124.66 84.39 281.93 138.09 251.25 347.14 176.45 197.55 92.06 86.31 Youxi County Shenlang Edible Oil Co., Ltd 661.7 19.18 19.18 23.02 15.34 47.95 174.53 47.95 170.69 72.88 28.77 24.93 17.26

129

Water supply Water supply Project implementing unit 3 capacity (0'000 m ) 1 2 3 4 5 6 7 8 9 10 11 12 1,090.9 52.36 26.18 70.91 48.00 160.37 78.55 142.91 197.46 100.37 112.37 52.36 49.09 Ninghua State-owned Ecological Forestry 840.8 27.74 26.90 21.86 21.02 125.27 203.46 72.30 131.16 103.41 36.99 31.11 39.52 Co., Ltd 260.5 10.09 7.15 10.43 24.89 23.79 40.78 44.98 27.49 29.51 21.19 7.57 12.70 Fujian Ninghua County Ninghua Science and 457.3 15.09 14.63 11.89 11.43 68.13 110.65 39.32 71.33 56.24 20.12 16.92 21.49 Technology Co., Ltd 141.7 5.49 3.89 5.67 13.53 12.94 22.18 24.46 14.95 16.05 11.52 4.12 6.90 241.9 7.98 7.74 6.29 6.05 36.04 58.54 20.80 37.74 29.75 10.64 8.95 11.37 Fujian Chunhui Tea Co., Ltd 75.0 2.90 2.06 3.00 7.16 6.85 11.73 12.94 7.91 8.49 6.10 2.18 3.65 161.1 5.32 5.15 4.19 4.03 24.00 38.98 13.85 25.13 19.81 7.09 5.96 7.57 Fujian Cuiyun Tea Co., Ltd 88.5 2.92 2.83 2.30 2.21 13.19 21.42 7.61 13.81 10.89 3.89 3.27 4.16 91.5 3.02 2.93 2.38 2.29 13.63 22.13 7.86 14.27 11.25 4.02 3.38 4.30 Fujian Jinxi Tea Co., Ltd 194.7 6.43 6.23 5.06 4.87 29.01 47.12 16.74 30.37 23.95 8.57 7.20 9.15 Fujian Houde Agro-forestry Ecological Co., 665.5 21.96 21.30 17.30 16.64 99.16 161.06 57.23 103.82 81.86 29.28 24.62 31.28 Ltd 7,234.6 280.70 213.42 217.04 566.47 636.64 1372.40 1168.38 593.96 1091.70 533.91 283.59 276.36 1,189.4 46.15 35.09 35.68 93.13 104.67 225.64 192.09 97.65 179.49 87.78 46.63 45.44 Fujian Datian County Golden Phoenix 2,206.1 85.60 65.08 66.18 172.74 194.14 418.49 356.28 181.12 332.90 162.81 86.48 84.27 Agricultural Development Co., Ltd 4,354.6 168.96 128.46 130.64 340.96 383.20 826.06 703.26 357.51 657.10 321.37 170.70 166.34 1,756.8 68.16 51.83 52.70 137.56 154.60 333.26 283.72 144.23 265.10 129.65 68.87 67.11 4,752.0 184.38 140.18 142.56 372.08 418.18 901.45 767.45 390.14 717.08 350.70 186.28 181.53

5,232.8 115.63 186.79 958.03 773.85 1040.17 702.69 327.54 435.32 436.89 86.86 95.23 73.77 Longyu Ecological Industry Development Co. Ltd 1,061.5 23.46 37.89 194.34 156.98 211.00 142.54 66.44 88.31 88.63 17.62 19.32 14.97 3,963.3 87.58 141.47 725.60 586.11 787.82 532.21 248.08 329.71 330.90 65.78 72.12 55.88

8,402.5 142.84 255.44 168.05 339.46 1278.03 2408.17 548.69 1677.99 981.42 245.35 115.96 241.15 Longyan Greenland Ecological Agriculture Development Co. Ltd 97.7 1.66 2.97 1.95 3.95 14.86 28.00 6.38 19.51 11.41 2.85 1.35 2.80 101.0 1.72 3.07 2.02 4.08 15.36 28.94 6.59 20.16 11.79 2.95 1.39 2.90 78.2 1.33 2.38 1.56 3.16 11.89 22.40 5.10 15.61 9.13 2.28 1.08 2.24 195.7 10.29 10.29 17.18 14.82 17.28 15.46 25.29 21.12 21.55 19.49 11.39 11.55 Fujian Xinghe Investment Development Co. 195.7 10.29 10.29 17.18 14.82 17.28 15.46 25.29 21.12 21.55 19.49 11.39 11.55 Ltd 352.0 18.52 18.52 30.91 26.65 31.08 27.81 45.48 37.98 38.76 35.06 20.49 20.77 352.0 18.52 18.52 30.91 26.65 31.08 27.81 45.48 37.98 38.76 35.06 20.49 20.77 283.5 7.09 11.06 11.62 43.66 59.54 41.39 45.36 19.85 22.40 9.36 6.24 5.95 Fujian Hongsheng Gardening Co. Ltd 105.3 2.63 4.11 4.32 16.22 22.11 15.37 16.85 7.37 8.32 3.47 2.32 2.21

130

Water supply Water supply Project implementing unit 3 capacity (0'000 m ) 1 2 3 4 5 6 7 8 9 10 11 12 38.6 0.41 1.04 1.80 8.83 12.47 2.55 3.56 0.62 6.10 0.42 0.42 0.40 96.1 10.59 0.56 10.59 10.25 10.59 10.25 10.59 10.59 10.25 10.59 0.60 0.62 210.4 3.13 7.09 34.46 29.54 58.85 27.20 12.58 12.22 17.34 2.80 2.84 2.34 240.4 3.58 8.10 39.39 33.76 67.25 31.09 14.38 13.97 19.81 3.20 3.25 2.67 Fujian Farms Agribusiness Tea Co., Ltd 270.5 4.03 9.12 44.31 37.98 75.66 34.98 16.18 15.72 22.29 3.60 3.65 3.00 89.2 4.38 4.71 4.87 5.79 10.01 19.91 9.17 11.36 9.74 3.84 3.08 2.33 109.0 5.89 5.12 5.67 7.41 17.12 17.01 11.56 13.41 11.99 4.69 3.27 5.89 Fujian Lvyin Agriculture Co., Ltd 122.7 6.62 5.77 6.38 8.34 19.26 19.14 13.00 15.09 13.49 5.27 3.68 6.62 180.5 9.75 8.48 9.38 12.27 28.34 28.15 19.13 22.20 19.85 7.76 5.41 9.75 Ningde Qilongxiang Agriculture Co. Ltd 231.6 12.51 10.89 12.04 15.75 36.36 36.13 24.55 28.49 25.48 9.96 6.95 12.51 78.4 4.24 3.69 4.08 5.33 12.32 12.24 8.32 9.65 8.63 3.37 2.35 4.24 190.5 10.29 8.95 9.91 12.95 29.91 29.72 20.19 23.43 20.96 8.19 5.72 10.29 Fujian Jianye Agro-forestry Comprehensive 130.7 7.06 6.14 6.80 8.89 20.53 20.40 13.86 16.08 14.38 5.62 3.92 7.06 Investment Co. Ltd 265.2 14.32 12.47 13.79 18.03 41.64 41.37 28.11 32.62 29.17 11.40 7.96 14.32 223.4 12.06 10.50 11.62 15.19 35.07 34.85 23.68 27.48 24.57 9.61 6.70 12.06

Table A6.2: Ten-Day Water Availability Distribution in Dry Year (P=90%) County Hydrolical station Designed dry year Month 1 2 3 4 5 6 7 8 9 10 11 12 Year total First ten-day period 1.85 1.59 3.90 5.90 6.79 4.06 1.82 1.61 1.80 2.29 1.26 1.30 34.17 Second third of a month 1.92 1.86 2.78 4.33 5.35 3.16 1.40 4.45 1.39 2.16 1.30 1.25 31.36 Guangze Guangze Station 1971 Last ten-day period 2.75 1.32 9.49 5.39 3.49 2.47 1.68 1.64 1.44 1.33 1.69 1.80 34.47 Subtotal 6.52 4.77 16.18 15.62 15.62 9.69 4.90 7.70 4.62 5.78 4.25 4.35 100.00 First ten-day period 0.54 1.41 3.62 0.91 15.25 4.66 1.48 2.10 0.78 1.32 0.51 0.61 33.19 Chongan hydrolical Second third of a month 0.59 1.35 3.39 0.72 6.49 3.99 1.50 1.84 0.51 1.32 0.50 0.58 22.78 Wuyishan 1971 station Last ten-day period 0.57 1.34 0.38 20.87 8.96 4.66 1.62 2.26 0.51 1.76 0.59 0.52 44.03 Subtotal 1.70 4.10 7.40 22.50 30.70 13.30 4.60 6.20 1.80 4.40 1.60 1.70 100.00 First ten-day period 1.44 0.26 1.82 0.48 3.68 3.10 3.14 8.33 3.50 3.30 1.73 2.65 33.43 Second third of a month 1.92 0.82 3.18 2.90 3.68 2.02 4.19 5.43 2.94 3.50 1.68 1.80 34.06 Youxi Luobu hydrolical station 1963 Last ten-day period 1.44 1.32 1.50 1.02 7.34 2.08 5.77 4.34 2.76 3.50 1.39 0.05 32.51 Subtotal 4.80 2.40 6.50 4.40 14.70 7.20 13.10 18.10 9.20 10.30 4.80 4.50 100.00 First ten-day period 1.00 1.00 1.20 0.80 2.50 9.10 2.50 8.90 3.80 1.50 1.30 0.90 34.50 Ninghua hydrolical Second third of a month 0.90 0.80 0.70 0.60 9.00 7.40 2.20 4.50 4.90 1.20 1.30 1.70 35.20 Ninghua 1971 station Last ten-day period 1.40 1.40 0.70 1.10 3.40 7.70 3.90 2.20 3.60 1.70 1.10 2.10 30.30 Subtotal 3.30 3.20 2.60 2.50 14.90 24.20 8.60 15.60 12.30 4.40 3.70 4.70 100.00 First ten-day period 1.20 0.85 1.24 2.96 2.83 4.85 5.35 3.27 3.51 2.52 0.90 1.51 30.99 Second third of a month 1.15 1.15 1.14 2.23 3.35 4.54 5.56 3.16 4.45 2.21 1.69 1.14 31.77 Datian Ansha hydrolical station 1971 Last ten-day period 1.53 0.95 0.62 2.64 2.62 9.58 5.24 1.78 7.13 2.65 1.33 1.17 37.24 Subtotal 3.88 2.95 3.00 7.83 8.80 18.97 16.15 8.21 15.09 7.38 3.92 3.82 100.00 Yongding Luotan hydrolical station 1963 First ten-day period 0.59 1.51 1.22 9.56 7.55 2.84 2.37 3.68 5.52 0.62 0.64 0.46 36.56

131

County Hydrolical station Designed dry year Month 1 2 3 4 5 6 7 8 9 10 11 12 Year total Second third of a month 0.66 1.54 11.88 2.85 4.03 6.91 0.95 1.36 1.8 0.52 0.6 0.44 33.54 Last ten-day period 0.95 0.52 5.21 2.37 8.3 3.69 2.93 3.28 1.03 0.52 0.59 0.51 29.9 Subtotal 2.21 3.57 18.31 14.79 19.88 13.43 6.26 8.32 8.35 1.66 1.82 1.41 100 First ten-day period 0.45 0.48 1.09 1.06 3.68 11.05 1.31 14.02 3.55 1.09 0.64 0.35 38.77 Second third of a month 0.45 0.35 0.38 1.06 8.42 11.24 0.96 4.19 3.71 0.77 0.45 1.18 33.16 Xinluo Liuxi hydrolical station 1971 Last ten-day period 0.80 2.21 0.53 1.92 3.11 6.37 4.26 1.76 4.42 1.06 0.29 1.34 28.07 Subtotal 1.70 3.04 2.00 4.04 15.21 28.66 6.53 19.97 11.68 2.92 1.38 2.87 100.00 First ten-day period 1.34 0.84 4.65 2.02 1.84 3.04 2.59 7.57 3.32 3.51 2.62 0.69 34.03 Shanghe hydrolical Second third of a month 1.44 0.65 1.84 2.03 5.01 3.1 1.89 2.27 3.51 2.87 2.02 2.43 29.06 Pinghe 1968 station Last ten-day period 2.48 3.77 2.29 3.52 1.98 1.76 8.44 0.95 4.18 3.58 1.18 2.78 36.91 Subtotal 5.26 5.26 8.78 7.57 8.83 7.90 12.92 10.79 11.01 9.96 5.82 5.90 100.00 First ten-day period 0.75 0.96 1.12 4.32 6.56 5.39 5.47 2.23 3.14 1.19 0.75 0.76 33.14 Hougong hydrolical Second third of a month 0.82 1.02 1.65 4.68 7.08 5.43 6.36 2.56 2.78 1.06 0.79 0.72 34.45 Hua'an 1971 station Last ten-day period 0.93 1.92 1.33 6.4 7.36 3.78 4.17 2.21 1.98 1.05 0.66 0.62 32.41 Subtotal 2.5 3.9 4.1 15.4 21 14.6 16 7 7.9 3.3 2.2 2.1 100 First ten-day period 0.39 0.99 1.71 8.39 11.84 2.42 3.38 0.59 5.79 0.4 0.4 0.38 36.68 Second third of a month 0.49 1.67 11.55 2.93 5.91 4.43 1.04 0.6 1.64 0.51 0.42 0.31 31.50 Fu'an Fu'an hydrolical station 1971 Last ten-day period 0.61 0.71 3.12 2.72 10.22 6.08 1.56 4.62 0.81 0.42 0.53 0.42 31.82 Subtotal 1.49 3.37 16.38 14.04 27.97 12.93 5.98 5.81 8.24 1.33 1.35 1.11 100.00 First ten-day period 1.62 1.74 1.8 2.14 3.7 7.36 3.39 4.2 3.6 1.42 1.14 0.86 32.97 Yangzhongfan hydrolical Second third of a month 1.46 1.32 1.69 2.17 5.91 3.5 3.32 4 4.04 1.46 0.99 1.19 31.05 Jiaocheng station Last ten-day period 2.32 1.64 1.71 2.49 6.09 4.74 3.89 4.1 3.36 1.42 0.87 3.35 35.98 Subtotal 5.40 4.70 5.20 6.80 15.70 15.6 0 10.60 12.30 11.00 4.30 3.00 5.40 100.00 First ten-day period 1.62 1.74 1.8 2.14 3.7 7.36 3.39 4.2 3.6 1.42 1.14 0.86 32.97 Second third of a month 1.46 1.32 1.69 2.17 5.91 3.5 3.32 4 4.04 1.46 0.99 1.19 31.05 Dongqiao Qibu hydrolical station Last ten-day period 2.32 1.64 1.71 2.49 6.09 4.74 3.89 4.1 3.36 1.42 0.87 3.35 35.98 Subtotal 5.40 4.70 5.20 6.80 15.70 15.60 10.60 12.30 11.00 4.30 3.00 5.40 100.00 First ten-day period 1.62 1.74 1.8 2.14 3.7 7.36 3.39 4.2 3.6 1.42 1.14 0.86 32.97 Second third of a month 1.46 1.32 1.69 2.17 5.91 3.5 3.32 4 4.04 1.46 0.99 1.19 31.05 Zherong Qibu hydrolical station Last ten-day period 2.32 1.64 1.71 2.49 6.09 4.74 3.89 4.1 3.36 1.42 0.87 3.35 35.98 Subtotal 5.40 4. 70 5.20 6.80 15.70 15.60 10.60 12.30 11.00 4.30 3.00 5.40 100.00 Source: domestic FSR and PPTA team, 2015.

Table A6.3: Annual Irrigation Water Distribution (P=90%) County Hydrolical station Designed dry year Month 1 2 3 4 5 6 7 8 9 10 11 12 Year total First ten-day period 0.96 0.8 1.15 1.6 4.22 5.1 5 7.66 4.1 2.63 1.1 1 35.32 Second third of a month 1.06 0.56 1.26 1.64 3.42 5.26 5.24 7.25 3.1 2.52 1 0 32.31 Guangze Guangze Station 1971 Last ten-day period 1.12 1.02 1.62 1.67 3.94 5.46 6 5.04 3.42 2.18 0.9 0 32.37 Subtotal 3.14 2.38 4.03 4.91 11.58 15.82 16.24 19.95 10.62 7.33 3 1 100 Wuyishan Chongan hydrolical station 1971 First ten-day period 0.45 0.33 3.45 3.08 5.02 0.99 3.93 6.70 4.05 3.92 0.99 0.42 33.33

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County Hydrolical station Designed dry year Month 1 2 3 4 5 6 7 8 9 10 11 12 Year total Second third of a month 0.45 0.33 3.45 3.08 5.02 0.99 3.93 6.70 4.05 3.92 0.99 0.42 33.33 Last ten-day period 0.46 0.33 3.45 3.08 5.02 0.99 3.93 6.70 4.05 3.92 0.99 0.42 33.34 Subtotal 1.36 0.99 10.35 9.24 15.06 2.97 11.79 20.10 12.15 11.76 2.97 1.26 100.00 First ten-day period 1.44 0.26 1.82 0.48 3.68 3.10 3.14 8.33 3.50 3.30 1.73 2.65 33.43 Second third of a month 1.92 0.82 3.18 2.90 3.68 2.02 4.19 5.43 2.94 3.50 1.68 1.80 34.06 Youxi Luobu hydrolical station 1963 Last ten-day period 1.44 1.32 1.50 1.02 7.34 2.08 5.77 4.34 2.76 3.50 1.39 0.05 32.51 Subtotal 4.80 2.40 6.50 4.40 14.70 7.20 13.10 18.10 9.20 10.30 4.80 4.50 100.00 First ten-day period 1.80 1.46 0.47 4.56 4.16 3.18 3.22 4.20 5.84 2.76 0.99 1.44 34.08 Second third of a month 0.27 0.24 0.67 3.56 5.49 3.60 2.68 5.93 2.90 5.52 0.50 0.72 32.08 Ninghua Ninghua hydrolical station 1971 Last ten-day period 1.36 0.00 1.14 3.46 7.53 2.60 3.89 2.45 5.81 4.52 0.50 0.58 33.84 Subtotal 3.43 1.70 2.28 11.58 17.18 9.38 9.79 12.58 14.55 12.80 1.99 2.74 100.00 First ten-day period 0.75 0.96 1.12 4.32 6.56 6.39 5.47 2.23 3.14 0.69 0.75 0.76 33.14 Second third of a month 0.82 1.02 1.65 4.68 7.08 5.43 6.36 2.56 2.78 0.56 0.79 0.72 34.45 Datian Ansha hydrolical station 1971 Last ten-day period 0.93 1.92 1.33 6.40 7.36 4.28 4.17 2.21 1.98 0.35 0.86 0.62 32.41 Subtotal 2.50 3.90 4.10 15.40 21.00 16.10 16.00 7.00 7.90 1.60 2.40 2.10 100.00 First ten-day period 1.44 1.44 2.36 7.03 4.27 4.8 1.64 4.92 3.37 2.42 2.31 1.44 37.44 Second third of a month 1.64 1.15 2.52 3.45 5.03 3.3 0.29 3.37 3.37 2.46 1.25 1.5 29.33 Yongding Luotan hydrolical station 1963 Last ten-day period 1.54 1.44 3.46 3.04 4.16 2.53 4.27 4.04 3.85 2.46 0.96 1.48 33.23 Subtotal 4.62 4.03 8.34 13.52 13.46 10.63 6.2 12.33 10.59 7.34 4.52 4.42 100 First ten-day period 1.8 1.46 0.47 6.95 4.16 3.18 3.22 3.42 5.48 2.76 0.99 1.44 35.33 Second third of a month 0.27 0.24 0.67 5.56 5.49 1.27 2.68 5.93 2.90 5.25 0.13 0.72 31.11 Xinluo Liuxi hydrolical station 1971 Last ten-day period 1.36 0.00 2.78 3.46 7.53 0.25 3.89 2.24 5.81 5.52 0.14 0.58 33.56 Subtotal 3.43 1.70 3.92 15.97 17.18 4.70 9.79 11.59 14.19 13.53 1.26 2.74 100.00 First ten-day period 1.68 1.76 6.51 1.55 1.69 9.38 0.92 3.72 1.51 2.61 2.66 0.49 34.48 Second third of a month 1.81 1.36 2.58 1.55 4.6 9.11 0.67 1.11 1.59 2.13 2.05 1.73 30.29 Pinghe Shanghe hydrolical station 1968 Last ten-day period 3.11 7.88 3.21 2.7 1.82 5.3 3 0.47 1.9 2.66 1.2 1.98 35.23 Subtotal 6.60 11.00 12.30 5.80 8.11 23.79 4.59 5.30 5.00 7.40 5.91 4.20 100.00 First ten-day period 1.6 0.6 1.7 8.6 5.1 1.6 2 2.5 4.3 4 1.6 1.4 35 Second third of a month 0.4 0.8 1.5 3.5 5.2 1.7 4.5 4.5 4.8 3.3 1.7 0.3 32.2 Hua'an Hougong hydrolical station 1971 Last ten-day period 0.8 0.9 2.6 3.4 5.4 2 4 4.6 4.7 2.3 1.7 0.4 32.8 Subtotal 2.8 2.3 5.8 15.5 15.7 5.3 10.5 11.6 13.8 9.6 5 2.1 100 First ten-day period 0.39 0.99 1.71 8.39 11.85 2.42 3.38 0.59 5.79 0.4 0.4 0.38 36.69 Second third of a month 0.49 1.67 11.55 2.93 5.91 4.43 1.04 0.6 1.65 0.51 0.42 0.31 31.51 Fu'an Fu'an hydrolical station 1971 Last ten-day period 0.61 0.71 3.12 2.72 10.22 6.08 1.56 4.62 0.81 0.42 0.53 0.43 31.83 Subtotal 1.49 3.36 16.38 14.03 27.98 12.93 5.98 5.81 8.25 1.34 1.35 1.12 100 First ten-day period 0.43 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.33 Second third of a month 0.43 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.33 Jiaocheng Yangzhongfan hydrolical station Last ten-day period 0.44 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.34 Subtotal 1.30 2.28 7.35 9.24 16.56 11.97 10.29 18.60 12.15 6.03 2.97 1.26 100.00 Dongqiao Qibu hydrolical station First ten-day period 0.43 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.33

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County Hydrolical station Designed dry year Month 1 2 3 4 5 6 7 8 9 10 11 12 Year total Second third of a month 0.43 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.33 Last ten-day period 0.44 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.34 Subtotal 1.30 2.28 7.35 9.24 16.56 11.97 10.29 18.60 12.15 6.03 2.97 1.26 100.00 First ten-day period 0.43 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.33 Second third of a month 0.43 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.33 Zherong Qibu hydrolical station Last ten-day period 0.44 0.76 2.45 3.08 5.52 3.99 3.43 6.2 4.05 2.01 0.99 0.42 33.34 Subtotal 1.30 2.28 7.35 9.24 16.56 11.97 10.29 18.60 12.15 6.03 2.97 1.26 100.00 Source: domestic FSR and PPTA team, 2015.

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