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Hebei Province Wastewater Management Project in the People's

SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

HEBEI PROVINCE WASTEWATER MANAGEMENT PROJECT

IN THE

PEOPLE'S REPUBLIC OF

May 2002

CURRENCY EQUIVALENTS (as of 31 March 2002)

Currency Unit – (CNY) CNY1.00 = $0.121 $1.00 = CNY8.27 The exchange rate of the yuan is determined under a managed floating exchange rate system. For the purpose of this report, an exchange rate of CNY8.30 to $1.00 is used.

ABBREVIATIONS ADB – Asian Development Bank AP – affected person BOD – biochemical oxygen demand COD – chemical oxygen demand CRAES – China Research Academy of Environmental Sciences EIA – environmental impact assessment EPB – environmental protection bureau GDP – HEPB – Environmental Protection Bureau HPMO – Hebei Project Management Office MSC – municipal sewerage company NOx – nitrogen oxides PRC – People’s Republic of China RP – resettlement plan SEIA – summary environmental impact assessment SEPA – State Environmental Protection Administration SO2 – sulfur dioxide SS – suspended solids TSP – total suspended particulates WWTP – wastewater treatment plant

WEIGHTS AND MEASURES

oC – degree Celsius ha – Hectare km – Kilometer km2 – square kilometer m – Meter mg/kg – milligram per kilogram mm – millimeter

NOTES

(i) The fiscal year (FY) of the Government coincides with the calendar year. (ii) In this report, “$” refers to US dollars.

CONTENTS Page

MAP ii

I. INTRODUCTION 1

II. DESCRIPTION OF THE PROJECT 1

III. DESCRIPTION OF THE ENVIRONMENT 2 A. Topography and Geology 2 B. Climate and Rainfall 2 C. Hydrology 3 D. Ecological Resources 3 E. Water Quality and Pollution 4 F. Social and Economic Conditions 5

IV. ALTERNATIVES 8 A. With-Project and Without-Project Alternatives 8 B. Alternative Treatment Processes 8 C. Alternative Plant Sites 8 D. Alternatives for Effluent Disposal and Reuse 9 E. Alternatives for Sludge Disposal 9 F. Alternative Sewer Alignments 9

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 9 A. Impacts Associated with Project Location 9 B. Impacts Associated with Process/Structural Design 10 C. Impacts Associated with Construction Phase 10 D. Resettlement 12 E. Impacts Associated with Operational Phase 12

VI. ECONOMIC ASSESSMENT 14

VII. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING 16 A. Institutional Requirements 16 B. Environmental Monitoring 18

VIII. PUBLIC INVOLVEMENT 19 A. Legal Requirements of the Government 19 B. Public Participation during Project Preparation 19 C. Future Public Participation Plans 20

IX. CONCLUSIONS 20

APPENDIX

I. INTRODUCTION

1. The Project consists of five subprojects in Hebei Province, People’s Republic of China (PRC), to provide wastewater collection and treatment in the urban areas of , , New , Xuanhua and . This summary environmental impact assessment (SEIA) of the Project as a whole was prepared in accordance with the requirements of the PRC Government and the Asian Development Bank (ADB) concurrently with the draft full environmental impact assessment (EIA) reports and additional information collected for the five subprojects. The full EIA reports for the Baoding, Xuanhua and Zhangjiakou subprojects were prepared by the Hebei Province Research Institute of Environmental Sciences. The full EIA reports for the Chengde and Tangshan wastewater treatment subprojects were prepared by the Municipal Engineering Design and Research Institute, and the Center for Environmental Assessment, China Research Academy of Environmental Sciences (CRAES), respectively. The EIA study brief for each subproject was submitted to and approved by the Hebei Environmental Protection Bureau (HEPB) by 20 May 2001. As legally required by the Government, a full EIA report for the Baoding subproject and an SEIA report for each of the other four subprojects were prepared jointly by CRAES and the Hebei Project Management Office (HPMO) and submitted to the State Environmental Protection Administration (SEPA) for approval. Full EIA reports for four subprojects (excluding Baoding) were submitted to HEPB for approval.

II. DESCRIPTION OF THE PROJECT

2. Hebei Province holds a key position within the basin, and surrounds the major cities of and . Many of the 65 million people in the densely populated Hebei Province and the additional 20 million people in Beijing and Tianjin must rely upon the limited, seasonally variable water resources in the basin. Water pollution from municipal, industrial, and agricultural sources derived from the activities of 120 million people in the Hai River basin has degraded the water quality such that it is unsatisfactory for the intended uses at 80% of the Hebei monitoring stations (located at critical points in the basin). Reservoirs and river sources have been polluted, as well as shallow aquifers and the marine environment of the Bo Hai Sea.

3. Cleanup of the Hai River basin has been accorded high priority nationally by the State Council as well as by the Hebei provincial government. The proposed Hebei Province Wastewater Management Project is an important follow-on effort by ADB, which has contributed to strategic planning of water pollution control projects in the basin as a whole. The Project will address municipal and industrial water pollution problems in the five project cities (see Map). Proper formulation and implementation of the Project will protect drinking water sources, improve water quality in the Hai River basin, improve the urban environment, and enhance economic development in the region. Key features of the Project are listed in Table 1. It is scheduled to be completed by December 2006.

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Table 1: Key Features of the Hebei Province Wastewater Management Project

Wastewater Plant Sewer Sludge Service Service Percentage Treatment Capacitya Disposal Requirement Area Population Industrial Subproject (m3/day) (km) (ha) (km2) Wastewater (%) Baodingb 160,000 91.9 12.1 90.0 900,000 50 Chengde 80,000 25.4 Landfill 6.7 34.0 340,000 30 Tangshan 80,000 17.0 Landfill 7.3 24.0 220,000 70 Xuanhua 120,000 34.0 Landfill 10.8 29.4 300,000 80 Zhangjiakou 100,000 36.8 Landfill 10.0 72.8 527,000 50 ha = hectare, km = kilometer, km2 = square kilometer, m3/day = cubic meter per day. a total capacity, excluding existing capacities in Baoding and Tangshan New District; treatment processes include secondary biological treatment with nitrification and organic phosphorus reduction. b Baoding subproject also includes two wastewater lift stations. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

III. DESCRIPTION OF THE ENVIRONMENT

4. Hebei Province is bordered by Bo Hai Sea and Province to the east, Province to the southeast, Province to the south, Province to the west, and to the north (see Map). The province has a total area of 188,000 square kilometers (km2) and consists of 11 cities ranked as municipalities and capitals of prefectures, 23 cities ranked as counties, 109 counties, and 6 autonomous counties. There are also 35 urban districts administered by the 11 municipalities.

A. Topography and Geology

5. The project area is located at the eastern part of the . The land is relatively flat in Tangshan, with elevations ranging from 5 to 40 meters (m) above sea level and a natural gradient of no greater than 0.15%. The project area in Baoding has ground elevations of 13.4–29.5 m and a typical gradient of 0.1%; Chengde is hilly, with elevations ranging from 200–1800 m and a natural gradient of 0.2–1%; Xuanhua has ground elevations of 591–1023 m and gradients of 0.1–0.3%; and Zhangjiakou has ground elevations ranging from 650–790 m and natural gradients of 0.3–1%. The underlying geology is characterized by Quaternary structure, and the is mostly and sandy clay.

6. The project area is close to a fault zone within the deep earth crust. Over the last 100 years, this region has had earthquakes as intense as 7.8 on the Richter scale. According to the latest seismological classification by the State Earthquake Bureau, the Tangshan area is classified as 8 and the other project areas as 6-7 on the PRC earthquake intensity scale.

B. Climate and Rainfall

7. The Project area has a continental monsoon climate with distinct seasonal changes. The average temperature in the coldest month (January) is -10.2 degrees Celsius (oC) and that in the hottest (July), 26.7oC. Annual average temperature ranges from 7.6oC in Zhangjiakou to 12.9oC in Baoding. The annual average precipitation ranges from 379 millimeters (mm) in Zhangjiakou to 623 mm in Tangshan, 60-75% of which falls in July-August. Wind directions change distinctly with the seasons. In winter, the prevailing wind direction is from the northwest;

3 that in summer, from the southwest or southeast. The annual average wind speed ranges from 1 meter per second in Chengde to 3.5 meters per second in Zhangjiakou.

8. Recent ambient air monitoring indicates that the air quality in Baoding, Chengde, Xuanhua, and Zhangjiakou can be characterized as level 2-4, and in Chengde as level 1-3.1 The major air pollutants are total suspended particulates, sulfur dioxide and nitrogen oxides. The air classification is based on the index of the most polluting substance.

C. Hydrology

9. The Project is located in the Hai River basin, which is crisscrossed by rivers, canals, and drainage ditches, including the landmark . Surface waters in the region are characterized by low to nil flows in the dry season and by relatively high water flows in the rainy summer season. All major rivers in the basin have hydrologic control facilities along their length, and the flows in rivers, tributaries, and irrigation ditches are highly regulated for flood control and irrigation. Silt settles in the river channels in the eastern coastal area as a result of the flat gradients near the sea.

10. Several reservoirs and rivers have been significant in project formulation. Xuanhua and Zhangjiakou are situated upstream of , which, after , is ranked as the second most important freshwater source for Beijing. Wastewater from the Zhangjiakou urban area is discharged untreated into the , which flows to the Yang River and then to Guanting Reservoir. Xuanhua urban district, southeast of Zhangjiakou, discharges its untreated wastewater directly into the Yang River. Traversing Tangshan New District, the Huanxiang River is a tributary of the Jiyun River, which flows eventually to the Bo Hai Sea. The Chengde wastewater treatment plant (WWTP) will be built in the south of the city proper along the , which is upstream of Panjiakou Reservoir and Daheiting Reservoir, the major freshwater sources for Tianjin. Baoding is situated upstream of Lake Baiyangdian, the largest natural lake of the North China Plain. Both treated and untreated municipal wastewater of Baoding is discharged into Lake Baiyangdian via the , which traverses the city center. Water from Lake Baiyangdian flows to the Daqing River and the Hai River, which drains into the Bo Hai Sea.

11. The rivers and channels within the urban areas have been developed for flood discharge and irrigation. According to government monitoring and survey records, there are no known fishery resources in the urban waterways.

12. The hydrogeology of the project area is characterized by weathered rock with high salt content in shallow aquifers, typically 2–7 m below the surface. Water from these layers is seldom used for domestic or irrigation supply. Deep aquifers typically 20–200 m deep, are the primary water sources for most domestic, industrial, and agricultural uses in the five urban service areas.

D. Ecological Resources

13. Table 2 summarizes the main agricultural and ecological resources in the project region.

1 Air quality is classified into 5 levels in the PRC; level 5 is the poorest air quality.

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Table 2: Agricultural and Ecological Resources of the Project Area

Category Type Major Plants Chinese pine, cypress, oriental arborvitae, larch, poplar, and willow Major Wild Animals Partridge, pheasant, sparrow, badger, wolf, hare, roe deer, and boar Main Crops , corn, , barley, Chinese , beans, sweet potato Cash Crops , peanut, sesame, sunflower, vegetables, medicinal herbs Pear, golden Chinese date, apple, peach, grape, chestnut, hawthorn, pomegranate, persimmon Roadside/Canal-side Trees Poplar, willow Livestock and Poultry Pigs, cows, horses, sheep, geese, ducks Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

14. There are no natural ecosystems in immediate proximity to the urban project areas in Baoding, Xuanhua, or Zhangjiakou that would receive major impacts from the Project. Major vegetation near the Chengde project area includes Chinese pine, cypress, oriental arborvitae, larch, poplar, and willow, and there is a large variety of wildlife species, including partridge, pheasant, sparrow, badger, wolf, hare, roe deer, and boar.

15. The Tangshan urban area has an afforestation area of 135 hectares (ha), with 99 ha of gardens and forests and 78 ha of public grassland. The afforestation coverage rate is 38%.

16. Lake Baiyangdian, 45 kilometers (km) downstream from Baoding City, is the largest wetland of North China and has abundant aquatic ecological resources.

17. The Bo Hai Sea, the ultimate receiving water body for the effluent from the proposed WWTPs, is an inland sea bordered by Liaoning, Hebei, and Shandong provinces and Tianjin Municipality. It has an area of 77,000 km2 with an average depth of 18 m and is connected to the Yellow Sea by the Bo Hai Strait. Sediments from the Hai, Yellow, Luan, and Liao rivers give the Bo Hai Sea a rich ecological system; it is a well-known fishing ground. Fishing products include the highly valued prawn and yellow croaker. However, such shallow inland seas are susceptible to eutrophication when there are excessive inflows of nutrients. The Bo Hai Sea is no exception, as indicated by the frequent occurrence of red tides.2 The situation appears to be getting more serious recently. In the first occurrence in August 1989, the affected area was about 200 km2. The occurrence in September 1998 reached an area of 3,000 km2, almost 4% of the sea.

18. There are no rare or endangered species in either the project area or the Bo Hai Sea.

E. Water Quality and Pollution

19. The water quality of receiving water bodies and the major pollution sources are listed in Table 3. Major water pollutants include chemical oxygen demand (COD), chromate test, biochemical oxygen demand, suspended solids, and nutrients. Five water quality classifications are defined based on intended water use, with quality worse than class V considered to be of no use.

2 Red tide is a naturally occurring phenomenon that involves large, concentrated blooms of marine planktonic algae. These tides are thought to occur more frequently in areas of high oceanic eutrophication resulting from sewage and other similar pollutant sources.

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Table 3: Water Quality of Receiving Water Bodies

Wastewater Receiving Water Quality Existing Major Pollution Sources Treatment Water Body Requirementa Water Subproject Quality Baoding Fu River class IV class V Domestic and industrial wastewater (chemical, machinery, and light industrial) Chengde Wulie River class IV class V Domestic and industrial wastewater (chemical, beverage, and pharmaceutical) Tangshan Huanxiang b class > V Domestic and industrial wastewater River (pulp and paper) Xuanhua Yang River class II class V Domestic and industrial wastewater ( and steel, chemical fertilizer, brewery, pulp and paper, tannery, and pesticides) Zhangjiakou Yang River class II class V Domestic and industrial wastewater (pharmaceutical, cigarette, and machinery) a PRC class I is the highest standard for national nature preserves and untreated water supply; classes II and III are for fishing, recreation, and treated water supply; class IV is for industrial use and noncontact recreation; class V is for agriculture and scenic viewing. b No national water quality requirement; a local requirement may exist. Source: PRC Environmental Quality Standard for Surface Water.

20. All the shallow groundwater aquifers in the five urban areas are contaminated. Major pollutants are COD, salinity, and nitrates.

F. Social and Economic Conditions

21. Baoding Prefecture consists of four cities, 18 counties, and three urban districts covering a total area of 2,213 km2, with a population of 10,353,900, of whom 701,500 are urban residents. The gross domestic product (GDP) in 1999 was CNY54.509 billion, which came to CNY5, 265 per capita. Agriculture, industry, and tertiary industry contribute 26.7%, 40.5%, and 32.8%, respectively to GDP. Baoding has a diversity of industries, predominantly textiles, chemicals, and machinery. It enjoys convenient transportation, including the Beijing- Highway; national highways 107, 108, 112, and 207; and the Jing-Guang Railway (Beijing- ).

22. Currently, Baoding has two 80,000 cubic meter per day (m3/d) WWTPs, eight wastewater pumping stations, nine stormwater pumping stations and associated sewer and drains. The total length of trunk sewer is 70.8 km, and the city proper has 7.7 km of combined sewer and 168.7 km of storm pipes. Additionally, there are open and underground ditches. Some sewer systems in the old districts are combined, and other areas generally have separate sewers.

23. Chengde Prefecture consists of three districts and eight counties, covering a total area of 40,000 km2 and having a population of 3,510,000. The city proper covers nearly 38.5 km2, with a population of 292,900 and an average annual income of CNY5988 per capita. Chengde is the political, economic, and cultural center of northeastern Hebei, and is a famous historic city and tourist destination. Chengde’s economy depends on agriculture, but tourism, business, and industry are developing. Major industries are food and beverage, , metallurgy, machinery, electronics, building materials, chemical, and pharmaceutical. In 2000, the GDP of Chengde

6 was CNY23 billion. Transportation routes include the Jing-Cheng and the Jing- (Beijing- Tianjin) and Jing-Jin (Beijing-) railways. Currently, Chengde has four groundwater treatment plants, five treated water pumping stations, and 136 km of water supply pipes. The municipal drainage system includes over 100 km of separate sewers and two wastewater pumping stations. No WWTP exists in Chengde.

24. Tangshan Prefecture consists of five districts, ten counties, and two , covering a total area of 13,500 km2 and having a population of 6.76 million. Tangshan has a history of more than 100 years of heavy industrial development. Major industries include metallurgy, power, , building materials, machinery, and chemicals. Tangshan is an important energy and raw material supplier of the country, and is also an agricultural product supplier for the northeast of China. The Jing- railway, Jing-Ha highway and national highway 102 traverse this area.

25. Tangshan New District, built in 1980, is administered by Tangshan City. It consists of three villages and two communities; covers an area of 118 km2; and has a total population of 159,400, of whom 99,000 are in the urban area. Fengrun County, also subordinate to Tangshan, consists of seven villages and eight towns, covering an area of 1,216 km2 containing 695,000 people, of whom 55,000 are in the county town. The GDP of Tangshan New District and Fengrun County in 1999 was CNY2.55 billion. Major industries include pharmaceuticals, nonmetal mineral processing, food, transportation equipment, clothing, and machinery.

26. Currently, Tangshan New District has a WWTP with design capacity of 33,000 m3/d, which is located in its western part. It has a separate sewer system. Most of the domestic and industrial wastewater generated in the area is collected in the existing main trunk sewers, then conveyed to the existing WWTP, while the remainder is discharged into the Huanxiang River. Fengrun County Town has several incomplete combined sewer systems. Currently, the New District has three sewage pumping stations, and Fengrun County Town has one.

27. Zhangjiakou Prefecture consists of four districts (including Xuanhua District) and 13 counties; covers an area of 36,900 km2 and has a total population of 4.39 million, of whom the urban residents number 996,500. The city proper (Qiaodong and Qiaoxi districts) covers 46.5 km2, with 425,000 residents. Located in the northwest part of Hebei Province, Zhangjiakou is an inland commercial center connecting Hebei, Shanxi, and Inner Mongolia. The major industries of the city are machinery, chemicals, cigarettes, textiles, paper, and tanned leather. Its GDP in 1999 was CNY23.019 billion. The existing drainage system in the urban area lacks integral planning. Combined sewer systems have been constructed based on the natural topography. Currently, no WWTP exists in Zhangjiakou.

28. Major social and economic conditions in the project cities are summarized in Table 4.

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Table 4: Major Social and Economic Conditions

Project Urban GDP Water Wastewater Transportation Features City Population (CNY Supply Treatment (x1000) million) (x1000 m3d) (x1000 m3d)

Baoding 823 54,500 674 190 National highways 107, Lake Baiyangdian, Governor’s House 108, 112 and 207; Jingguang railway

Chengde 350 23,000 99 0 Jingcheng and Jingjin World Cultural Heritage – Royal Summer Villa and highways; Jingjing railway Eight Royal Temples, Bangchun Mountain

Tangshan 99 25,500 201 33 Jingqing railway, Jingha Tombs of , Jingjiue Temple, Highway; national Jingzhong Mountain, Jinyentan Beach, Shijiutuo highway 102 Island

Xuanhua 234 152 0 city wall, south gateway, Zhenyuan Pavilion, Liao Tombs

Zhangjiakou 435 23,000 126 0 Jingzhang highway, Bashang grassland, Great Wall Jingbao railway

m3/day = cubic meters per day. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

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IV. ALTERNATIVES

A. With-Project and Without-Project Alternatives

29. Chengde, Xuanhua and Zhangjiakou have no WWTPs. The wastewater treatment facilities in Baoding and Tangshan have insufficient capacities to treat the wastewater generated in their service areas. Without this project, groundwater, which is the drinking water source for most of these cities, will be subject to contamination; receiving surface waters (which include the drinking water sources for Beijing and Tianjin) and Bo Hai Sea are highly degraded (Table 3) and unsatisfactory for the intended uses.

30. With this project, living conditions in the project urban areas will be improved, pollutant loading to the receiving water bodies will be reduced, and the drinking water sources can be protected from contamination.

B. Alternative Treatment Processes

31. The five proposed WWTPs will be secondary biological treatment plants. Two or three alternative biological processes were considered in each feasibility study, which included: (i) the conventional activated sludge process; (ii) the anaerobic, anoxic, and anaerobic process for effective removal of nitrogen and phosphorus; (iii) the oxidation ditch process, which has a higher nitrogen and phosphorus removal efficiency than conventional processes; and (iv) the newly developed anaerobic and oxidation process, with high phosphorus removal efficiency. Factors considered included treatment efficiency in relation to raw wastewater characteristics, environmental aspects, cost, and sludge handling. Based on the varying conditions and requirements, the oxidation ditch process was selected for Chengde, Xuanhua and Zhangjiakou; and the anaerobic and oxidation process for Baoding and Tangshan.

C. Alternative Plant Sites

32. The proposed site for the Baoding WWTP is based on requirements of the Baoding Urban Master Plan and Drainage Engineering Master Plan. The WWTP will be built south of the existing Yindingzhuang WWTP so as to minimize construction, operation, and management costs as well as environmental impacts.

33. The proposed Chengde WWTP site is located in a village next to the Luan River. It is at the lowest point within the proposed service area and distant from the major tourist sites. The selected site will have minimum operation costs and minimum environmental impacts compared with other potential sites.

34. Two alternative sites were evaluated for the proposed Tangshan WWTP. Site one is located southwest of the existing WWTP. It is northwest of Tangshan New District, on the south bank of the Huanxiang River, with farmland to the east, an access road and farmland to the south, and a ring road and farmland to the west. Site two is east of the ring road, on the north bank of the Huanxiang River. Site two would offer fewer difficulties in land acquisition, but would require an additional sewer length of 1.5 km, and an inverted siphon crossing under the Huanxiang River. Site one has been selected to minimize the costs of construction, operation, and management, as well as to minimize the environmental impacts.

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35. The Xuanhua WWTP site has been selected because (i) it is far away from the planned city proper in a leeward direction, which minimizes impacts on the urban environment; (ii) the alignment of a major interceptor along the river is cost effective for sewer construction and wastewater collection; (iii) the site is surrounded by land, suitable for treated wastewater reuse; (iv) there are no nearby residents, which minimizes resettlement; and (v) there are no significant ecological impacts.

36. Two alternative WWTP sites were compared for the Zhangjiakou subproject, including site one, located south of the planned expansion of the city proper until 2020 and the planned south ring road, and site two, located within the planned city proper by 2020. Site one was selected because it has fewer residents nearby; resettlement will be minimized, and the site is further away from groundwater sources, thus minimizing the potential impact on drinking water quality.

D. Alternatives for Effluent Disposal and Reuse

37. At all the WWTPs, effluent will be conveyed by an outfall to a river, from which the water will be available for irrigation and other uses downstream. Preliminary consideration was given to industrial reuse of the effluent from the Baoding, Xuanhua and Zhangjiakou WWTPs. However, under existing conditions there is no economic incentive for industry to reuse effluent rather than self-supplied groundwater. Land application or controlled irrigation is proposed in the project preparatory technical assistance study as a means of effluent polishing for nutrient removal. Industrial reuse has not been precluded, and can be undertaken as a separate future project if circumstances change.

38. Alternative effluent outfalls were assessed for the Baoding and Zhangjiakou WWTPs. The sites selected are based on distance from the WWTP to the river, land acquisition requirements, and cost.

E. Alternatives for Sludge Disposal

39. At all the WWTPs, arrangements or agreements are in place to allow disposal of sludge to a controlled sanitary landfill by the time the plants are placed into operation. For the Baoding WWTP, a portion of the sludge will be processed into fertilizer pellets; the process is under testing in the existing WWTP that will be expanded under the Project.

F. Alternative Sewer Alignments

40. Sewer alignments have been selected based on the topography of the service area, existing sewers, location of the WWTP, construction cost, and handling of interferences such as major , railways, other underground utilities, and river crossings. The alignments were also selected to minimize environmental and resettlement impacts.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Impacts Associated with Project Location

41. Four of the subprojects (excluding Baoding) have compared at least two options for location of the WWTP, and the optimal locations have been selected. The selected locations will have minimal interference with existing utilities, minimal resettlement, and no identified impairments of historical or cultural areas.

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B. Impacts Associated with Process/Structural Design

42. Each of the five subprojects has adopted measures to minimize hazards or nuisance conditions to neighbors. These measures include provision of buffer zones (200–300 m) and fences, noise and aerosol abatement, and contingency plans for accidental wastewater overflows or spills.

43. Each subproject will receive sizable industrial wastewater flows. In the design, three or four treatment process options have been compared. Processes that can accommodate shock loads from industry have been selected.

44. There is also a risk in disposing of hazardous materials associated with industrial wastewater. Each subproject will include strict enforcement of wastewater discharge standards. The local environmental protection bureau (EPB) in each project city is preparing a plan to control the hazardous materials in the industrial wastewater.

C. Impacts Associated with Construction Phase

45. Construction activities for WWTPs, pumping stations, and sewers will involve the use of construction machinery and vehicles. Construction activities may produce short-term noise, vibration, air pollution, muddy runoff, safety hazards, sewage from construction personnel, solid wastes and debris, spoils, , and silt runoff. Environmental protection measures in connection with construction operations are required as integral parts of the engineering contracts. Good practices such as dust reduction, provision of storm runoff detention ponds, controlled disposal of spoil material, and washing of truck tires before leaving the construction site are some of the environmental protection measures to be adopted in the contract specifications.

46. Noise and vibration will be generated during construction by the heavy construction machinery, including excavators, bulldozers, concrete mixers, and transportation vehicles. Generally, construction noise exceeding a noise level of 70 decibels has significant impacts on surrounding sensitive receivers within 50 m of the construction site. Major abatement measures include (i) no nighttime construction using heavy machinery, from 22:00 to 6:00, near residential areas; (ii) no discretionary use of noisy machinery within 50 m of residential areas; (iii) good maintenance and proper operation of construction machinery to minimize noise generation; (iv) installation of temporary sound barriers if necessary; and (v) selection of transport routes for large vehicles to avoid residential areas.

47. Construction of the wastewater treatment plant will involve the use of large earth-moving and other heavy construction machinery. The noise level should meet standards within 50 m of the construction site during the day, and within 100 m of the boundary at night. There are no residents within 400 m at the five WWTP sites; thus the noise impact should be insignificant. However, machinery of low noise level will be selected for use, and construction using heavy machinery from 22:00 to 6:00 will be avoided as far as possible. Some plant construction sites are adjacent to roads with relatively busy traffic; traffic congestion is expected, and mitigation measures, such as temporary traffic arrangements, will be put in place.

48. Measures to be adopted to minimize dust generation during construction include (i) enclosing demolition sites; (ii) spreading water on dusty roads; (iii) maintaining water content in construction materials; (iv) covering or enclosing transportation vehicles, controlling the speed of vehicles, and selecting transportation routes to minimize impact on dust-sensitive receivers;

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(v) covering or watering open spoil or storage sites; and (vi) minimizing on-site storage time of construction materials.

49. All the vehicles and construction machinery will be operated in compliance with relevant vehicle emission standards and with proper maintenance to minimize air pollution.

50. In the rainy season, mitigation measures will include (i) providing temporary detention ponds or containment to control silt runoff, and (ii) timely restoration of disturbed land to minimize silt runoff.

51. Small amounts of wastewater flow will be generated by the construction workers; to minimize the impact, interim pipelines will be placed to convey the wastewater to nearby sewers; or interim holding tanks will be constructed, with the effluent discharged to the existing drainage.

52. Refuse generated by construction workers, construction spoils, and other solid wastes could have adverse impacts on the surrounding environment and traffic. The most practical and effective mitigation measure is timely clean-up. In addition, on-site refuse will be stored in closed containers.

53. Traffic congestion, air pollution, and inconvenience to pedestrians and shop owners are potential problems in pipelaying, especially when using the open cut method proposed in the Project. Mitigation measures include building interim roads, selecting transport routes to reduce disturbance to regular traffic, diverting traffic at peak traffic hours, and reinstating the roads as soon as possible. If possible, the sewers will be installed during the initial construction of new roads or reconstruction of existing roads.

54. There are no important historical and cultural sites, and no rare or endangered species that will be affected by construction of the five subprojects. Construction areas or sewer routes are not located in forests, grasslands, designated natural reserves, or scenic spots.

55. Construction will result in removal or relocation of trees and vegetation along sewer routes or at WWTP sites. These impacts will be temporary, and original vegetation will be recovered or replanted after sewer construction is completed. will generally be applied to more than 30% of the land at WWTP sites. Thus, no significant adverse impacts will be imposed on the local ecological environment. However, to avoid potential damage to sewers, some trees will be replanted after construction. For example, in Tangshan New District, 560 trees will be removed without replacement. In this case, trees will be removed and replanted in nearby areas if possible.

56. The proposed WWTP sites are within or adjacent to farmlands, and dust generated by construction activity could have short-term adverse impacts on the surrounding crops. Mitigation measures include covering of dust generation sources, construction of containing walls to control muddy runoff, and timely restoration of disturbed land to minimize the adverse impacts on crops.

57. Construction of WWTPs and sewers may interfere with existing underground utilities (water and gas pipelines, and communication and power cables) and may result in temporary suspensions of service. Avoidance of other utilities will be carefully considered in design and construction of the WWTPS and sewer networks. Emergency measures will be put in place to minimize adverse impacts.

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D. Resettlement

58. Impacts relating to resettlement (physical and economic displacement) affect three groups: (i) people affected by the acquisition of land for the WWTPs and pumping stations, (ii) people affected by the temporary use of land for installation of the sewer network, and (iii) people whose livelihood is affected. Project works have been located to avoid residential areas, minimize disruption in villages, and maintain village cohesion as much as possible.

59. Due to the relatively small parcels of land being acquired in each village, most households will not experience a major impact on livelihood as a result of land acquisition. Luojiafang in the Zhangjiakou service area will experience the largest change, a 25% loss of land. Resettlement under the Project includes physical relocation of a total of 255 households, shops, or enterprises affecting a total of 1,395 persons (APs); permanent land acquisition of nearly 60 ha affecting 664 persons; and temporary land acquisition of 171 ha affecting 3,124 persons. There are 4,983 APs overall. The Zhangjiakou subproject will have the largest resettlement component, with 516 persons and 167 houses affected by the construction of part of the sewer network, which is also part of a road-widening project. The main cost item for resettlement is land compensation. The total cost for both land acquisition and resettlement is estimated to be CNY231.7 million or $28.0 million. The cost for resettlement in the individual cities will range from CNY13 million in Tangshan to CNY79 million in Zhangjiakou.

60. Temporarily used land will be returned to the original land user on completion of installation of a sewer. The sewer networks will be constructed within the public road shoulder, and across agricultural land used in most instances for growing wheat or corn. Short-term severance impacts on land parcels will also occur during the construction phase of the Project. These will include blockage of public rights-of-way; disrupted access to land parcels; and disrupted access to commercial, community, and some residential buildings. The project management offices and the government Department of Roads will liase to ensure that access arrangements are made for the local community during construction so that impacts are minimized. Following construction, road shoulders will be reinstated to preproject condition.

61. Mitigation measures and compensation for impacts on the population have been addressed, including compensation and livelihood restoration measures. The APs will be compensated for loss of houses and ancillary buildings, land, livelihood productivity, and land improvements, and, where required, alternative employment will be provided. The mitigation measures for social impacts are to ensure that the APs' livelihood is at least maintained after implementation of the Project. Appendix provides further details of the resettlement plan.

62. The socioeconomic benefits of the Project relating to improvements in the quality of life are documented in the socioeconomic assessment and include better wastewater services, a cleaner environment, improved prevention of waterborne diseases, increased employment opportunities for women and men, and poverty reduction.

E. Impacts Associated with Operational Phase

1. Impact from Odors

63. In a WWTP, the bar racks, screens, settling tanks, aeration tanks, and sludge processing units are all potential sources of offensive odors that can produce adverse environmental impacts on the neighboring community.

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64. Remedial measures to be taken for minimizing the potential odor problem of the WWTPs include source control, a green belt of 6–8 m width around the plant, planting of trees within the plant site, and rational arrangement of the treatment facilities to minimize the opportunity for odors to reach receptors. Source control includes the covering of sludge processing facilities and avoidance of storing dewatered sludge within the plant. A 300 m buffer strip around the plant with restricted development will ensure no odor impact on future communities near the site.

2. Impact from Sludge Disposal

65. Dewatered sludge from the proposed WWTPs will be disposed of in sanitary . Sludge sampling and testing from the existing Baoding WWTP in 1997 indicated in one sample a zinc concentration of 3,023 milligrams per kilogram (mg/kg) which is higher than the 1,000 mg/kg standard for agricultural application. In view of the high proportion of industrial wastewater in raw sewage for the proposed WWTPs, pretreatment requirements for the industrial wastewater dischargers will be strictly enforced to ensure good quality sludge if it is to be reused in agriculture.

66. The State Council issued a deadline of 30 December 2000 for all industrial wastewater dischargers to meet the relevant standards, including pretreatment requirements. Those failing to do this have been closed or have limitations on production. This provides assurance of sludge with better quality than found before the deadline.

67. Industrial wastewater discharging into municipal sewer systems in the project area is monitored at least two times a year by local environmental quality monitoring stations. Industrial establishments, however, carry out self-monitoring sometimes as often as several times a day, depending on the size of the establishment. The project cities have no formal monitoring program for pollutants in industrial wastewater discharges except for a few parameters to ensure sewer network safety. In accordance with international practice, the Government will consider undertaking a comprehensive monitoring program of its own with a higher frequency, especially for larger dischargers and dischargers with highly polluting wastewater. This would ensure compliance with regulations by the industrial wastewater dischargers, resulting in better quality of sludge and plant effluent, and enhanced opportunities for reuse.

3. Impacts of Treated Effluent on Receiving Waters

68. Effluent from the proposed WWTPs will be discharged into the nearby rivers, which are currently receiving untreated wastewater. With the operation of the WWTPs, effluent quality will meet requirements for irrigation use. The estimated COD of the effluent is lower than the standard limit of 150 milligrams per liter (mg/l) for irrigation. If the effluent is used for irrigation, it will reduce pollution discharge (particularly for nutrients) to the rivers, reservoirs, and ultimately the Bo Hai Sea.

69. No monitoring data or calibrated water quality models are available for predicting the impact of the effluent on the quality of the receiving waters. However, it is estimated, based on the plant designs and the experience with existing WWTPs in the area, that a total reduction of 40,515 tons/year biological oxygen demand and 77,526 tons/year COD will be achieved after all the proposed WWTPs are placed into service.

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4. Other Impacts

70. Noise generated in WWTP operation comes from operation of pumps and blowers, and is usually contained within the plant. Mitigation measures will include (i) selection of low noise machines; (ii) putting high noise equipment indoors; (iii) installation of noise enclosures or buffers; (iv) semiunderground setting of influent and effluent pump stations; and (v) establishing a greenbelt buffer around the plant, and between the office zone and the wastewater treatment units.

71. All the proposed WWTPs will be equipped with coal boilers for winter heating, which may emit unacceptable amounts of air pollutants. Installation of scrubbers to reduce emissions to an acceptable level may be required to minimize the impact on air quality, which is generally depressed in the project cities.

72. Chlorine leakage can result in serious injury to workers and property damage. Detectors will be installed such that the chlorine feed system will automatically shut down when a leak is detected. When small amounts of chlorine leakage occur in a chlorine workshop or warehouse and result in ambient chlorine concentration exceeding alarm limits, a ventilator will start up automatically. For large chlorine leaks, a chlorine scrubber system or an alkaline system will automatically start up to absorb the chlorine and contain the leak within the chlorine building. The final choice is to be made during final design. Other measures include minimizing the amount of chlorine stored on-site, installing alkaline recycling equipment (if a chlorine scrubber system is not installed), allocating a buffer zone around the chlorine warehouse and workshop, providing gas masks and oxygen tanks for use by workers, and providing periodic training and practice sessions on safe operational procedures.

73. Corrosive and toxic gases and liquids may accumulate in long-distance sewers and result in structural damage to and leakage from the sewers, as well as danger to life. Mitigation measures include inspection and control of facilities at potential sources, such as spills and leakage from underground storage tanks at gasoline stations, to prevent entry into the sewer system; reasonable spacing between access holes to allow sampling to track sources; ventilation of sewers for dispersion of the gas to minimize the risk; and implementation of coordinated emergency response plans by city agencies.

74. Overflows and bypassing of flows at pump stations may occur during heavy or when the WWTP is out of order, which may flood the surrounding area or discharge untreated wastewater into the receiving waters. Preventive measures include (i) installing standby equipment to avoid overflow during major equipment failure and regular maintenance, (ii) dual power source supply system designed to avoid power failure, (iii) setting up proper maintenance programs for large-scale equipment inspection, (iv) enhancement of operational monitoring, and (v) good hydraulic design with provision of overflows at rivers or drainage ditches that can readily accept the associated magnitude of the overflows.

VI. ECONOMIC ASSESSMENT

75. The cost of the Project is estimated at $164 million, comprising $85 million (52%) from the proposed ADB loan and $79 million (48%) in counterpart funds. The breakdown is shown in Table 5.

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Table 5: Summary of Estimated Project Cost ($ million)

Foreign Local Total Component Exchange Currency Cost A. Infrastructure 1. Baoding 23.7 21.7 45.4 2. Chengde 10.5 11.3 21.8 3. Tangshan New District 9.7 7.2 16.9 4. Zhangjiakou Xuanhua 10.1 13.1 23.2 Zhangjiakou 8.2 12.0 20.2 Subtotal Zhangjiakou 18.3 25.1 43.4 Subtotal (A) 62.2 65.3 127.5

B. Capacity Building 3.9 3.9

Total Base Costs 66.1 65.3 131.4

C. Contingencies Physical Contingenciesa 6.6 5.2 11.8 Price Contingenciesb 5.6 6.4 12.0 Subtotal (C) 12.2 11.6 23.8

D. Front End Fee 0.9 0.9

E. Interest and Other Charges During Construction 6.2 1.4 7.6

Grand Total 85.3 78.3 163.6 a Includes 10% on all costs, excluding land acquisition. b Escalation allowance of 2.5% per annum in 2002 and 4.0% per annum thereafter on local costs and 2.4% per annum on foreign exchange costs. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

76. The unit wastewater treatment cost of the Project is CNY2,806 per m3/day of WWTP capacity. A total of 40,515 tons/year of BOD and 77,526 tons/year of COD will be removed at the design flows and expected pollution loads. Removals of these and other pollutants, and the easily quantifiable benefits of the Project, are summarized in Table 6.

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Table 6: Summary of Project Benefits and Environmental Impacts

Item Units Baoding ChengdeTangshan Xuanhua Zhangjiakou Total Pollutant Removal COD removal tons/year 17,812 7,592 12,848 23,214 16,060 77,526 BOD removal tons/year 9,928 4,088 6,716 11,388 8,395 40,515 SS removal tons/year 13,724 3,942 6,862 16,863 10,403 51,793

NH3-N remov al tons/year 584 1,226 146 2,058 1,351 5,365 TN removal tons/year 584 - - 2,628 1,752 4,964 TP removal tons/year 187 50 94 184 263 777 Unit Cost CNY/m3/day 3,079 2,935 2,272 2,726 2,875 2,806 Beneficiaries persons 350,000 300,000 220,000 244,000 200,000 1,314,000 Irrigated Area ha 3,330 20 - 1,210 2,420 6,980 Greenhouses m2 - 10,000 - 12,000 15,000 37,000 2 3 BOD = biochemical oxygen demand, COD = chemical oxygen demand; m = square meters, m = cubic meters, NH3- N = ammonia, SS = suspended solids, TN = total organic nitrogen, TP = total organic phosphorus. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

77. The Project is part of the Hai River Basin Water Pollution Control Plan for the urban areas of Hebei Province. Without this Project, raw sewage would continue to be discharged into local water courses, causing pollution problems in the service area, rivers, reservoirs and the Bo Hai Sea. Without this Project, the planned urban and industrial development of the subproject areas may be jeopardized. The Project is essential to ensure environmental protection and a good quality urban environment.

78. Other benefits include the substantial environmental improvement provided to the drinking water sources of other important cities such as Beijing and Tianjin; increased asset value, which may be reflected in the willingness to pay for the assets, such as rents, with the improved urban environment; improved quality of groundwater, which is the drinking water source for most of the project cities, due to reduced groundwater recharge by sewage and improved surface water quality; and improved water quality for irrigation, which in turn will improve the quality and yield of agricultural products, generate higher rural incomes, and protect public health. Benefits of the Project to tourism and recreation have been estimated for Baoding and Chengde.

79. The Project will also contribute to water conservation through potential wastewater reuse, either in irrigation or industry, in a region that has experienced increasing shortages of water in recent years. Improvement of the aquatic environment also will have positive effects on the local ecological environment, including the return of aquatic life to currently polluted river sections.

VII. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING

A. Institutional Requirements

80. During project preparation and implementation, several institutions have environmental management responsibilities, including SEPA, HPMO, HEPB, the PMOs, the EPBs of project

17 cities, municipal sewerage companies (MSCs), design institutes, environmental impact assessment (EIA) organizations and contractors. Table 7 shows the environmental responsibilities of each agency during each phase of the project.

Table 7: Environmental Responsibilities

Phase Responsible Environmental Responsibilities Institutions Preparation SEPA, HEPB Review and approve EIA/environmental programs Design Design Institute Incorporate mitigation measures in engineering designs and contracts Design PMO Review and approve environmental measures Tendering Contractors Incorporate environmental management program into the bids Construction Contractors Implement environmental protection measures Construction PMO, MSC, Environmental monitoring and periodical environmental EPBs inspection Operation MSC, EPBs Environmental management and monitoring EIA = environmental impact assessment, EPB = environmental protection bureau, HEPB = Hebei Environmental Protection Bureau, MSC = municipal sewerage company, PMO = project management office, SEPA = State Environmental Protection Administration. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

81. During the construction of each subproject, the city EPB will be responsible for supervising the implementation of environmental control programs and measures, and the project contractor will be responsible for implementing these programs and measures. The city environmental monitoring station of the EPB will be responsible for environmental monitoring of the construction site for dust and noise in particular. If complaints are received from the public, monitoring staff will go out and conduct inspections immediately. All local environmental monitoring stations have qualified engineers and have monitoring equipment and technical capability for monitoring of the aquatic environment, air environment, physical environment (noise and vibration), soil and ecology (including solid waste), and traffic conditions. Laboratories of these departments have obtained certificates issued by the government, and these certificates are to be renewed periodically (usually every five years). These certificates assure the accuracy of the analytical results and their legal standing. During operation, specific divisions of the MSCs will be responsible for implementing environmental programs and measures and for routine monitoring.

82. To conduct monitoring, environmental divisions of the MSCs will need to acquire necessary staff and monitoring instruments. Projected staffing, major monitoring instrument requirements and budgets for instrument acquisition are presented in Table 8.

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Table 8: Staffing and Instrumentation Requirements for Monitoring during Operation

Project City Staff Size Budget Major Instruments (CNY) Baoding 12 251,550 Microscopes, dissolved oxygen meter, BOD Chengde 6 251,550 analyzer, quick COD analyzer, sound level Xuanhua 5 251,550 meter, balance and scale, pH meter, Zhangjiakou 5 251,550 conductivity meter, centrifuges, automatic air sampler Tangshan New District 15 1,000,000 same, plus portable hydrogen sulfide meter

Total 43 2,006,200 BOD = biological oxygen demand, COD = chemical oxygen demand Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

83. Management and monitoring staff of HPMO; HEPB; and the local PMOs, EPBs, and MSCs will receive domestic and overseas training in environmental monitoring, interpretation of monitoring results, mitigation planning, emergency response, environmental policy making, and other environmental management techniques.

B. Environmental Monitoring

84. Table 9 summarizes the environmental monitoring programs to be conducted by the environmental monitoring stations of the city EPBs and MSCs, including the minimum frequency of monitoring. Heavy metal concentration of effluent and surface waters will be monitored, especially during the dry season with its low streamflows. HEPB will be responsible for supervising implementation of these programs.

Table 9: Summary Environmental Monitoring Programs

Construction Phase Operational Phase Air Monitoring Locations Pug mills, dusty roads WWTPs Parameters TSP, pug mill emissions NOx, CO, TSP, odor Frequency Twice a year Once a year Length of monitoring 1-3 days 5 days Sampling hours 10 am and 3 pm 7-11 am and 2-5 pm Implementing agency Local monitoring station Local monitoring station Responsible agency Local EPB Local EPB Review agency Provincial EPB Provincial EPB Noise Locations Sensitive areas within 150 m from Outside areas within 2-5 m from plant construction site and buildings within boundary 50 m from piling sites Parameters Noise Noise Frequency Twice a year Once a year Length of monitoring 2 days 3 days Sampling hours Twice a day 10-11 am and 10-11 pm Implementing agency Local monitoring station Local monitoring station and MSCs Responsible agency Local EPB Local EPB and MSCs Review agency Provincial EPB Provincial EPB Water Quality Monitoring Locations Construction site WWTP effluent, surface water monitoring stations Parameters BOD, COD, SS, oil and grease, BOD5, COD, SS, oil and grease, heavy heavy metals metals

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Frequency Three times a year Twice a year (dry and rainy seasons) Monitoring agency Local monitoring station Local monitoring station and MSCs Responsible agency Local EPB Local EPB and MSCs Review agency Provincial EPB Provincial EPB EPB = environmental protection bureau, MSC = municipal sewerage companies., WWTP = wastewater treatment plant. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

85. Local environmental monitoring stations will be responsible for external environmental monitoring in both the construction and operational phases. The MSC will be responsible for internal environmental monitoring in the operational phase. Local/provincial EPBs will be responsible for supervising the monitoring. MSCs will be responsible for daily routine monitoring. The environmental monitoring results in both the construction and operational phases will be submitted to the local EPB, PMO, and other responsible agencies. Local EPBs and PMOs will be responsible for supervising implementation of monitoring programs and, if necessary, will decide on further mitigation actions during the construction and operational stages. Copies of all results will be sent to the provincial EPB or to SEPA, and to ADB. These agencies/institutions may also request that appropriate actions be taken for environmental mitigation as they deem necessary.

86. In addition, industrial wastewater discharges will be monitored at least twice per year by local environmental quality monitoring stations. However, industrial establishments will also carry out self-monitoring as often as several times a day depending on the sizes of the establishment. For industrial wastewater discharge, the MSC may consider undertaking a comprehensive monitoring program of its own with a higher frequency, especially for larger dischargers and dischargers with highly polluting wastewater.

VIII. PUBLIC INVOLVEMENT

A. Legal Requirement of the Government

87. For infrastructure projects, in particular those having potential impacts on the environment, extensive public participation is required by the Government. Public participation allows the local residents to fully understand the objectives and implementation of the proposed projects, their potential adverse and beneficial impacts, associated mitigation measures, and the anticipated results. One of the purposes of public participation is to understand the habits, preferences, and needs of the APs.

B. Public Participation during Project Preparation

88. Direct public involvement has been an ongoing element in the plan development and design of the Project. Public participation has occurred (i) as part of the process of investigating sites for facilities to verify their rationality, and (ii) to estimate the value of project benefits based on the willingness-to-pay of the residents. These investigations were carried out by the agencies preparing the EIAs, and the results were incorporated into the planning process to screen design options to minimize social and environmental impacts. Public investigation and results have played an important role in facility alignment, location, scale, and construction methods.

89. For each of the five subprojects, investigation of affected households has been carried out. Representative households, most of whom are farmers, were identified based on distance from facility site, income, and housing type. Households interviewed were randomly selected.

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The main impact noted by the households was the change in , and historical, cultural, and social attachment to the places that will be left behind. The method of compensation is of most concern. In accordance with a recent change in government policy, the village cooperative no longer receives the compensation and assumes responsibility for relocation, training, and re- allocation of farmland. Rather, the households affected will be compensated directly in cash.

90. For each of the subprojects, public surveys of beneficiaries were carried out as part of the EIA process. A representative sample was selected, including urban residents of the project cities of various ages, educational levels, and occupations and both genders. The survey collected information through questionnaires on project priority, project effects, attitudes towards the Project, and acceptability of a wastewater tariff, plus suggestions. Of the 710 questionnaires distributed, 692 were returned. Of the returned questionnaires, 91-98% expressed support for the Project, 65-77% were willing to accept its construction impacts, 85-88% were willing to pay a wastewater tariff, and 35-52% considered a proposed increase of wastewater tariff reasonable. All the persons surveyed confirmed the environmental and social benefits of the Project, and most of them were concerned about noise, odor, and traffic impacts. However, they were not optimistic about improvement of personal living conditions and were not interested in the specific nature of the Project.

91. All of the subprojects, in Baoding, Chengde, Tangshan, Xuanhua and Zhangjiakou held workshops on project construction, and attendees included representatives of the local people’s congress, political consultative committee, residents, related agencies, technical specialists, and local media. Project priority, various impacts, and mitigation measures were discussed at the workshops.

C. Future Public Participation Plans

92. Plans for public involvement during the design, construction, and operational stages have been developed. These plans include public participation in (i) monitoring impacts and mitigation measures in the construction and operational stages; (ii) evaluation of environmental, economic, and social impacts; and (iii) survey of public opinion after project completion. The plans include several types of public involvement: site visits, workshops, investigation of specific issues, and interviews. The plans will be incorporated into the project construction and operation management plan.

IX. CONCLUSIONS

93. The proposed Project will improve the living environment of the residents in areas served by it, protect drinking water sources of the project cities and also Beijing and Tianjin, and make an appreciable contribution to the water pollution control program of the Hai River basin. In addition, environmental improvements from the Project will provide opportunities for local environmental, economic, and social development; provide improved recreation; promote development of the tourism industry; and promote sustainable urban development.

94. Adverse impacts of the Project on the environment will be minimal and will be mitigated. Implementation of the Project, together with the planned remedial measures, will have relatively insignificant adverse environmental impacts. For the persons affected by land acquisition, compensation will be offered to minimize the impact. Short-term construction impacts will be mitigated by appropriate measures. Long-term impacts, including noise and odor from the operation of WWTPs, will be reduced to acceptable levels through engineering and management measures.

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95. During construction and operation, relatively small amounts of irreplaceable resources will be used for the Project. On the other hand, the Project will increase the potential for water conservation through wastewater reuse, which is a postconstruction issue that will be considered by the project cities in light of the serious shortage of water resources.

96. A comprehensive monitoring and environmental management program for the pre- construction, construction, and operational phases will be developed to ensure that all mitigation requirements are met.

97. The EIAs for the subprojects conclude that the Project will have substantial positive benefits on the environmental quality and the quality of drinking water in the downstream areas, and that adverse impacts on the physical and natural environment will be insignificant if the mitigation measures are properly implemented. Planning for resettlement of APs has been addressed in accordance with ADB policy.

Appendix 22

SUMMARY RESETTLEMENT PLAN

1. The wastewater projects in each of the five cities involve land acquisition and resettlement effects, and detailed resettlement plans (RPs) have been prepared in Chinese for each city. The resettlement planning takes into account all persons affected. The selection of the treatment plant sites and main wastewater pipeline routes was based on sitting and alignment options that minimized acquisition of cultivated land, temporary land use, and demolition of houses, thereby avoiding resettlement to the extent possible. The RPs are based on preliminary design work; they may be modified slightly after the detailed engineering for each component has been finalized.

2. The Project will affect approximately 5,000 people, including:

(i) physical relocation of 230 residential households (736 affected persons [APs]); (ii) 25 shops, institutes, or enterprises affected (1,195 APs); (iii) permanent land acquisition of 60 hectares—which is on average a 10% loss for affected villages, and represents complete loss of land for 664 APs; and (iv) temporary land acquisition of 171 hectares—which is on average a 5% loss for affected villages, and represents partial loss of land for 3,124 APs;

3. Zhangjiakou will have the greatest permanent effects because the construction of the sewer network is also part of a road-widening project. Luojiafang village in Zhangjiakou will experience a significant (25%) loss of land. In Baoding, the equivalent of 2,413 persons will lose one crop on account of temporary land acquisition. Due to the relatively small parcels of land being acquired in each village, most households will not experience a major impact on livelihood.

4. The RPs are based on policies and regulations relating to land acquisition and resettlement in the People’s Republic of China, and on the Asian Development Bank’s policy and guidelines on resettlement. Entitlements and compensation rates are shown in Table A.1. Payments will be made to the APs before house demolition and ground leveling commence, and before any loss of land. Temporary land will be acquired for a maximum of 6 months and then returned to the APs. Costs for restoration of land to its original condition have been incorporated into compensation costs.

5. Villages affected by land acquisition will invest the land compensation and resettlement subsidy that is obtained for the purpose of furthering production, such as livestock and dairy programs, vegetable farming, and the establishment of small enterprises. Rehabilitation measures will include adjustment and allocation of land to households affected by the Project so that they can have cultivable land similar to that of other villagers.

6. During the formulation of the RPs. there was consultation with the relevant city districts, country governments, mass organizations, and representatives of villages affected by land acquisition. Further consultation will be carried out during implementation as stipulated in the RPs. Grievances may be expressed verbally to the local village committee or more formally by letter to higher authorities at the county or municipal bureau.

7. The main cost item for resettlement will be land compensation. The total cost of land acquisition and resettlement is estimated to be CNY231.7 million or $28 million.

23 Appendix

8. Implementation of the resettlement plan will be supervised by each of the four project implementing agencies. The implementation schedule is shown in the Summary Resettlement Plan. External monitoring and evaluation will be undertaken by the National Research Center for Resettlement.

Appendix 22

Table A.1: Entitlements Matrix (including compensation rates)

Project Loss Compensation Basis for Calculation of Compensationa Other Measures Permanent loss of Cash payment to the Allocation of replacement land; cash compensation in CNY/ha: Reassignment of collective land to cultivated land village collective Baoding-CNY1,190,000 (); Chengde-CNY1,500,000; spread loss among all villagers Tangshan-CNY4,680,000; Zhangjiakou-CNY 793,000. Land acquisition compensation and resettlement subsidy will be the Cash to village committee to develop negotiated value based on 6-10 and 4-6 times, respectively. The alternative agricultural production/village total subsidies will not exceed 30 times average annual output industries to offset livelihood losses value of the previous 3 years.b

Temporary loss of Cash compensation to Cash compensation for land rehabilitation in CNY/ha: Baoding- Impact time will be as short as possible land affected collectives CNY 65,000 (grains), CNY87,500 (vegetables); Chengde- and is envisaged to be no greater than 6 CNY100,000; Tangshan-CNY58,5000 (irrigated land), months. CNY40,500 (dry land); Xuanhua and Zhangjiakou-CNY50,000.

Loss of in-ground Cash payment to affected Rates (CNY/ha) according to National Land Law, included in Acquisition date provided to affected crops farmers compensation for permanent or temporary land loss: Baoding- persons so crops are not planted for that CNY30,000 (grains), CNY75,000 (vegetables); Chengde- season CNY19,600; Tangshan-CNY19,500 (irrigated), CNY13,500 No compensation for trees planted after (dry); Xuanhua and Zhangjiakou-CNY31,700 issuance of land acquisition notice

Loss of residential Replacement cost of Replacement house foundation given; cash compensation for Where land is provided, affected persons houses structure house replacement (CNY/m2) + relocation allowance (CNY/m2): can reuse materials of the original Baoding urban and rural residential-CNY1,000 rural + CNY8 house. Many will buy a new house. The (brick-concrete), CNY800 + CNY8 (brick-wood); Tangshan- compensation rates are designed to CNY250 + CNY34; Xuanhua urban CNY1,500 + CNY40 (urban); reflect this. Rates have been established and Zhangjiakou- rural CNY220 + CNY40. based on replacement value determined through market surveys.

Loss of industrial land Replacement land plus Cash compensation for replacement cost of building; or assets cash compensation replacement cost (CNY/m2) + relocation allowance (CNY/m2): Baoding-enterprises CNY1,000 + CNY10, shops (brick-concrete) CNY3,000 + CNY10, shops (brick-wood)-CNY2,000 + CNY10; Zhangjiakou-CNY1,500 +CNY40.

Loss of other income Cash payment, allocation Cash payment to owner or village on per item or area basis (i.e., trees) of land

Loss or damage to Cash to utilities for Payment to utility authorities at rates prescribed in the Project For facilities not in use, removal and infrastructure relocation, repair transportation off site will be provided. a Basis for compensation: Land Administration Law (1998); land compensation costs over land + crops; resettlement costs cover transition fee, training, and other costs for reestablishment of livelihood. b More than 30 times has been used as a multiplier to comply with the Asian Development Bank requirement to provide replacement rates. Source: Final Report for TA 3488-PRC: Hebei Province Wastewater Management Project, August 2001.

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