Updated Environmental Assessment Report

Summary Environmental Impact Assessment Project Number: 38660 October 2011

People’s Republic of : Integrated Ecosystem and Agricultural Development Project

Prepared by Ningxia Hui Autonomous Region Government (Written by Environment Specialist Prof. Dr. Muyi Kang) for the Asian Development Bank (ADB).

This report has been submitted to ADB by the Ningxia Hui Autonomous Region Government and is made publicly available in accordance with ADB’s public communications policy (2011). It does not necessarily reflect the views of ADB.

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

WEIGHTS AND MEASURES ha — hectare (1 ha = 15 mu) km — kilometer m2 — square meter m3 — cubic meter mu — land division (1 mu = 667 m2) ton — 1,000 kg I

CONTENTS

I. INTRODUCTION 1

II. PROJECT DESCRIPTION (IN BRIEF) AND SUMMARY OF THE PROPOSED CHANGES 1

III. EIA ADDED FOR PROPOSED PROJECT CHANGES 4

IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ACCORDING TO ADB’S EIA STANDARDS 5

V. ENVIRONMENTAL MANAGEMENT PLAN 8

VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 8

VII. FINDINGS AND CONCLUSION 9

APPENDIXES: 10

APPENDIX 1 UPDATED KEY ENVIRONMENTAL CONCERNS AND ENVIRONMENTAL SAFEGUARD REQUIREMENT 10

APPENDIX 2 UPDATED SUMMARY ENVIRONMENTAL MANAGEMENT PLAN 12

APPENDIX 3 UPDATED ENVIRONMENTAL MONITORING PLAN 21

A. INTRODUCTION 21

B. SUMMARY OF THE CHANGES REQUIRING AN EMP REVISION 21

C. MONITORING REQUIREMENTS AND INDICATORS 26

D. INSTITUTIONAL ARRANGEMENTS 26

E. ENFORCEMENT ARRANGEMENT 27

F. SUMMARY 27

APPENDIX 4 EIA REGISTRATION FORMS 28

I. INTRODUCTION

1 The Ningxia IEM project was originally classified under ADB environmental safeguards as Category A due to potential significant potential environmental impacts arising from construction of the Xixia Canal extension. Under the agreed change in project scope dated March 29th 2011, the subcomponent of Xixia Canal construction was cancelled at the request of the Government, removing the only Category A subproject.

As part of the change in scope the activities of six Category B subcomponents were slightly modified, while the new subproject supporting the Xixia King winery equipment is classified as a Category B according to ADB safeguard policy and as Category C in the Chinese EIA standards. After the change in scope, the project comprises 11 Category B and five Category C subcomponents.

2 The scope of the following updated EIA report is limited to those subprojects that were revised or added during the change in scope to the Ningxia Integrated Ecosystem and Agricultural Development Project. The original EIA is appended for reference.

II. PROJECT DESCRIPTION (IN BRIEF) AND SUMMARY OF THE PROPOSED CHANGES

3 The project has four components: (i) building IEM capacity and project management, (ii) land and water resource management, (iii) improving rural livelihoods, and (iv) conservation and tourism. The outcome of the project is to introduce an integrated ecosystem management (IEM) approach that provides sustainable livelihoods for the population of the project area.

4 The Ningxia Hui Autonomous Region Government is the executing agency through NFD, under which a Project Management Office (PMO) had been established. The PMO is responsible for environment management during the implementation. Under the proposed project change in scope, the Project Implementation Agencies (PIAs) include Ningxia Finance Department (NFD), Ningxia Agriculture Reclamation Bureau (NARB), and Municipality Government (YMG).

5 A summary of the proposed changes for the IEM project (in which the proposed changes are highlighted) is provided in Table 1. 2

Table 1: Summary of the Proposed Changes for Ningxia integrated Ecosystem and Agricultural Development Project (adoptedfromtheApp2revised)

Original Scope Proposed Changes

Component 1: IEM Development and Project Management

(i) Strengthen the policy, legal and regulatory framework of No change. NHAR to enable the implementation of IEM principles, which will include: (a) water resource zoning; (b) spatial planning for land and water use according to ecosystem capability; (c) creation and management of the HPCMA; (d) control of pesticide and fertilizer usage to reduce non-point source pollution; (e) water pricing mechanisms to support water trading in NHAR; (f) management of wetlands; (g) revenue sharing arrangements for enterprises (h) operating cultural or tourism sites; (i) community-based tourism; (j) small farmer contractual farming arrangements; and (k) legal recognition of rural farmers associations and water user associations, including contract services. (ii) Provide training and institutional development through No change. “on the job” training, and study tours, in various areas including wetland conservation, biodiversity conservation, conservation agriculture, land use planning, integrated water resources management and ecotourism. Skills development and vocational training will also be provided. (iii) Support the development of information systems and No change. monitoring by developing the operational capacity of the NARG IEM Information Center and the sharing of information and monitoring data between relevant agencies. (iv) Strengthen project management of the project by No change. providing the PMO with additional staff and technical experts in the areas of procurement, finance management, work planning and reporting.

Component 2: Land and Water Resource Management

(i) Preparation of the IWRMP which will assist in The IWRWP has been done under the national developing a water policy and guide water use and water resource program. The funds savings investment, and the development and implementation of will be used for the water balance modeling a spatial planning framework which will assist in defining and integrated water resource management management zones, environmentally sensitive areas, study in Shahu Lake. conservation areas and land use options. (ii) Three CA demonstration sites for small holdings which No change. will provide demonstrations and training to farmers and trainers in IEM techniques including, crop residue mulching, minimum tillage, crop rotations, improved pest and plant nutrients management. Fertilizer management demonstrations will also be provided in order to develop fertilizer management practices. (iii) Design and construction of part of the Xixia Canal The Xixia Canal and on-farm canals for 3

including, 15.1 km of inverted siphon past the Xixia irrigation will be undertaken under the Tombs, 16 km of the main canal, control and monitoring government water resource programs and stations, 21.3 km on new secondary canals, 118 km of will be removed from the project scope. The secondary canals to be lined, and lining of 632 km of loan savings will be reallocated to laterals and on farm distribution. water-saving irrigation of grape plantation under NARB. (Refer to the EIA registration Form; see the Appendix 1)

Component 3: Improving Rural Livelihoods

(i) Expand beef, dairy and grape production by (a) expansion and upgrading of beef herds and the (a) Central beef cattle breeding herd will be construction of a “Halal” certified slaughter house, increased from 750 to 1500 heads. Beef (b) division of existing dairy herds and the provision of slaughterhouse has been completed using cooperative milking platforms with breeding and government funds and the loan savings will technical support be used for fodder mechanization and conservation agriculture equipment. (c) conversion to perennial fodder production systems requiring less water and soil disturbance, (b) Five distributed dairy farms will be regrouped into one farm. The fodder base (d) conversion of up to 670 hectares of flood irrigated land will be increased by 300 ha using funds to small contract grown vineyards using water saving saved from NAB’s fodder program. irrigation technologies, and (c) No change. (e) the use of biogas, bio-fertilizer and water recycling technology. (d) The vineyards will be increased to 2,400 ha using funds saved from NAB’s vineyard program and YMG’s tree farm development. (e) No change. (ii) Address sustainable land management through Reduce planting areas from 1,700ha to 260ha alternative production systems, including perennial and the loan savings will be reallocated to crops and reduction of water and agro-chemical use. the higher-value horticultural production Training will be provided for up to 3,000 individuals in under NARB. sustainable land management. (iii) Develop two blocks of land into perennial crops such as Shift the implementation project activities from jujube and alfalfa together with beef feedlot, contract NAB to NARB. Vocational training and fodder and sustainable live stock production systems for infrastructure agriculture have been done small holders in poverty affected areas. The project will using government funds and will be removed also develop a plant propagation business and from the project. processing and market distribution services to smallholders. Vocational training will be provided to rural communities to allow them to seek off-farm employment.

Component 4: Conservation

(i) At Lake Shahu, provide for re-vegetation, viewing Reallocate funds savings from the completed galleries and platforms, aquaculture activities, tourist aquatic plant using government funding to accommodation with waste water treatment system and the education center. Delete the holiday a scientific education center. houses and use savings for the increased cost of the education center. (ii) At Lake Yuehai, provide for commercial development of Replace aquatic poultry plant and use loan aquatic plants, a processing plant for aquatic vegetarian savings to develop eco-tourism facilities. food, ecological rehabilitation, water supply and heating system and re-greening of wetland landscapes. (iii) At Yinchuan, (a) create and manage the HPCMA, (a) No change. (b) provide for fencing and patrolling of certain areas west (b) No change. of the new Xixia Canal to prevent illegal grazing, (c) No change in scope. GEF funds will be antiquity collection and poachers, reallocated to develop IEM demonstration (c) establish an IEM ecological demonstration center to area and PMO will coordinate the activities. support biodiversity conservation and management of (d) No change. endangered species and impact on tourism, and (d) the preparation and implementation of an integrated 4

tourism management plan across all tourism sites. (iv) At Yinchuan wetlands, (a) preparation and implementation of a management (a) No change. planning and monitoring system which provides for (b) Wetlands conservation of Tonggui, Yueya, recreation use of the wetlands and sustainable use of Sanding, and Baohu lakes have been done water resources or will be undertaken by government funds. (b) rehabilitation of vegetation, The loan savings will be reallocated to the (c) upgrading of public awareness program, public education and exhibition facilities in Shahu and Mingcui lakes. (d) water quality management investments, including biological water treatment measures, and (c) No change. (e) increase activities of the Mingcui training center to (d) No change. include capacity development of staff of wetland (e) No change. management agencies. (v) At Yinxi wetlands, implementation of a program for No change. conservation of residual habitats and improve the quality of wetlands including restoration of approximately 8,000 hectares of natural grasslands and protection of linked wetlands on each side of the Xigan Canal with water fowl habitat. CA = conservation agriculture, HPCMA = Helan Mountains Conservation Management Area, IEM = integrated ecosystem management, IWRMP = integrated water resources management plan, NAB = Ningxia Administrative Bureau, NARB = Ningxia Agriculture Reclamation Bureau, NARG = Ningxai Hui Autonomous Region Government, NHAR = Ningxia Hui Autonomous Region, PMO = project management office, YMG = Yinchuan Municipality Government.

III. EIA ADDED FOR PROPOSED PROJECT CHANGES

6 The project’s subcomponents that have been changed and/or newly added have undergone the EIA process, according to the environment protection laws and regulations of the PRC (Environmental Protection Law of the People's Republic of China, 1989; Classification catalogue for management of environment impact assessment on construction project, Ministry of environmental protection of PRC, Order No. 2, 2008).

7 Three EIA Registration forms have been processed for the project’s proposed changes in scope (the EIA by going through the Registration Form process approximates the Category C, or B sometimes, of the ADB’s EIA standard process). These Forms are: “the Registration Form of EIA to the 2400ha Vineyard with Water-saving Irrigation System within NARB” (Subcomponent Implementation Unit: NARB); “the Registration Form of EIA to the Construction of IEM Demonstration and Training Center in Eastern Piedmont of the Ningxia Helan Mountain” (Subcomponent Implementation Unit: Integrated Project Management Office of the NFD); and “the Registration Form of EIA to the Public Education and Exhibition Facilities in Mingcui Lake” (Subcomponent Implementation Unit: Wetland Management Office of Yinchuan Municipality)1. (Refer to the Appendixes for detailed translation of those Forms.)

8 According to the findings of the EIA assessments in the three EIA Forms, the environment impacts are considered minor and the impacts assessed not to be serious, since implementation and related construction activities are small in scale and scope, and located within the original project implementation region. For example, the subcomponent may

1 As for the subcomponent, the Public Education and Exhibition Facilities in Mingcui Lake, assessed in this RF, there are no apparent negative impacts envisaged, judging from the ADB’s standards illustrated in the Environmental Assessment Guidelines (ADB, 2003), as well as in the Environmental Safe Guard Policy Statement (ADB, 2009). It involves only in some retrofitting and decoration activities. 5 involve buildings and facility constructions in, but none will discharge large quantities of solid waste (except for small amount of construction rubble wastes), generate large amount of waste water (except for some waste water as construction and sanitary sewage spilled), or emit air pollutants. All solid and/or liquid wastes will be treated or disposed properly and timely at a daily interval. The noise generated by construction activities will be minor and be minimized through some protective measures such as using noise-shield techniques. The subcomponents will play important roles in education, demonstration and training, sustainable production, and protected ecological functions. There is expected to be water resources saving and economic returns to local people, as well as provide ecological benefits to the environment.

IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ACCORDING TO ADB’S EIA STANDARDS

9 For Component 1: Building IEM Capacity and Project Management

The component mainly supports capacity building and institutional development. The IEM center constructed under this component is located on the western periphery of the Yinchuan Plain as part of a public private partnership management model. No apparent negative environment impacts anticipated except for small amount of construction rubble wastes during the construction period. Mitigation measures for the construction activity include, properly collecting and transporting the rubble and wastes at a daily interval to the designated landfill site for end disposal; and minimizing the construction noise through noise-shield techniques.

10 For Component 2: Land and Water Resources Management

Under the proposed changes, the Xixia Canal and on-farm canals for irrigation will be removed from the project scope. The loan savings were reallocated to water-saving irrigation of grape plantation under NARB (See also Component 3). With the proposed changes, this component includes two Category C subcomponents which are land management demonstrations and conservation agriculture. No environmental impacts are envisaged. Instead, the component will produce significant environment benefits through promoting land management and reducing land degradation.

11 For Component 3: Improving Rural Livelihoods

Under the agreed changes, the implementation of hi-tech agriculture activities were reallocated to NARB. NARB’s Beef slaughterhouse has been completed using government funds with loan savings to be used for fodder mechanization and conservation agriculture equipment. Central beef cattle breeding under NARB will be increased from 750 to 1500 heads. Five distributed dairy farms will be regrouped into one farm. The fodder base will be increased by 300 ha.

The vineyards will be increased to 2,400 ha with support for drip irrigation and winery equipment (See also Component 2). The planting areas of Yinxi alternative livelihoods will be reduced from 1,700 ha to 260 ha.

It must be mentioned here that this project is implemented in a sub-arid to arid region, where there is no agriculture if no irrigation and/or no enough water resources. From this sense there is a need to make an analysis of regional water resource balancing, since large scale of vineyard expansion means huge water resource consumption.

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The original cultivated lands including vineyards within the region generally used the traditional flood irrigation techniques and systems, by which the water consumption averaged at a level of 750 cubic meter per mu per year (i.e. 750 m3/mu/a, or 11,250 m3/hm2/a). Under the proposed subcomponent changes, however, the new vineyards will apply the water-saving drip irrigation technologies that substantially improve water use efficiency and only consume water resource at the level of 300~350 m3/mu/a, or 4,500~5,250 m3/hm2/a. Moreover, considering the planting areas of Yinxi will be largely reduced, the real increment of vineyard lands that need to provide extra irrigation water is only:

2400-667-(1700-260) = 293 ha. where 2400 ha is the new vineyard plantation area that will be implemented by the NARB, 667 ha the original area implemented by the NARB, 1700 ha the original area implemented by Yinxi, and 260 the new area implemented by Yinxi. Thus, the total new increment of water resource consumption is balanced at:

300~350×15×293 = 1.32~1.54×106 m3/a.

This figure means the total water consumption increment in whole project implementation region is within the scope of original water resource allocation plan, since the lands proposed for developing new vineyards are partly converted from the original cultivated lands, where have already facilitated with some irrigation systems but prevailed over by traditional flood irrigation technology, and partly from land reclamation. Accordingly, the extra new increment of water consumption from the former does not exist because the lands have had water quota already, and from the latter will be balanced out by the former, through the large amount of water saved from their applying water-saving drip irrigation technologies in subcomponent implementation processes.

According to the original SEIA, special analysis was conducted in the Chinese EIA report on the impact of beef cattle and cow breeding subcomponents on groundwater quality, to ensure compliance with the relevant local planning source protection zone for drinking water of Yinchuan City, and other water bodies.

Subcomponents for beef production and dairy farm development will have animal husbandry (cattle and cow) and processing at various scales. The solid wastes of cattle and cows have potentially negative environmental impacts. Significant volumes of waste will also come from the slaughtering and processing house. The dried dung technique will be used in the breeding farms to mitigate the adverse impacts. The collected waste will be used as compost on farm land. Before composting, waste will be sterilized in order to mitigate air quality and sanitation impacts. Some solid waste from breeding operations will be collected and treated in a small anaerobic biogas digester, and/or then used as artificial farmyard fertilizer on farmland owned by the participating households, or to be sold to farmers living nearby. Sewage (including urine) collected after washing of the breeding farm and processing house may cause environmental pollution. The larger suspended solids, floating debris and sand will be separated and composted as described above.

For subcomponent C1 central breeding and processing sites, the waste water will be discharged to the drainage pipeline and then to the sewage treatment plant or tanks. The sludge and residues will be composted. After treatment, water quality will meet the Grade II standard 10 and can be used for irrigating trees and grassland in the subcomponent area. The remaining treated water will be discharged into the natural drainage system. Sewage from contracted household cowsheds will be washed from the cowsheds (together with any cattle dung) and then treated by an anaerobic digester in the biogas generation and utilization system. Construction of the biogas system should be completed in a timely manner, in keeping with the subcomponent implementation schedule. After treatment, the residue will be 7 used as compost fertilizer and the liquid for irrigation of farmland or yards. Biogas will supply energy for the households.

The grape processing waste will have potential for minor negative impacts that are localized, short-term, non-significant, and can be fully mitigated. Impacts include improper disposal of plant residues such as grape stems and skins, as well as boiler slag from the processing plants. The plant residues (e.g. grape stems and skin) can be collected and sold as livestock feed, and/or be composted as organic manure. Boiler slag will be collected and used for road repairs, and/or sold as raw material for cement making. There is no adverse impact from the reduced use of irrigation by cropping adjustment for fodder, grapes, horticulture, etc. The water-saving irrigation programs are expected to result in substantial improvements to water use efficiency and reduced water logging of soils.

12 For Component 4: Conservation and Tourism

With the proposed changes, wetlands conservation of Tonggui, Yueya, Sanding, and Baohu lakes have implemented using government funds. The loan savings will be reallocated to the public education and exhibition facilities in Shahu and Mingcui lakes. The holiday houses in Lake Shahu will be removed. The poultry processing in Lake Yuehai will be deleted to protect water quality.

Lake Shahu, Lake Yuehai and Yinchuan wetland subcomponents are designed to be implemented involving wetlands scattered across the Yinchuan plain. Conservation areas and critical biodiversity may be affected if sites are placed too close to significant breeding or nesting grounds and critical wetlands. To minimize the impacts the subcomponent sites are carefully selected based on consideration of environmental factors (e.g. water and air resources, and distance to the significant breeding or nesting grounds, or critical wetlands). Rapid biological surveys will be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or species of economic importance.

There is the potential for water quality reduction in critical watersheds resulting from excavation for extension of open water areas or linkage. All excavation works will be confined to the dry season, and frequent monitoring of water quality undertaken. There is potential for displacement of significant flora and fauna exists for subcomponents Lake Shahu, Lake Yuehai and Yinchuan wetland. Conservation areas and critical wildlife may be affected if sites are placed too close to significant breeding or nesting grounds, critical wetlands, etc. Construction will not be sited adjacent to or near (within 1 km) of significant breeding or nesting grounds, critical wetlands, etc. The potential impacts are minimal, as rapid biological surveys have been undertaken prior to the engineering design at all sites, and the distance requirements have been followed for all subcomponents.

During operation, tourism activities in lakes, especially under the pressure of ever-increasing tourists, may have the potential to result in: (i) impacts on any locally significant flora and fauna, which may be displaced for development of sites; (ii) loss of wetland and vegetation for trail development and as a result of on- and off-trail activities; (iii) displacement of wildlife as a result of the presence of tourists; (iv) excessive use of local resources, in particular water; (v) localized water pollution from solid waste, sewage, and litter; and (vi) localized water and air pollution from vehicles and power boats.

Mitigation measures include: (i) tourism planning and environmental guidelines developed during the earlier phase of subcomponent implementation should be strictly followed in implementing tourism projects; (ii) no development of tourism physical infrastructure (buildings, restaurants and other service facilities, roads, etc.) is allowed in sensitive core areas of the wetland; (iii) no development of physical tourism infrastructure (buildings, restaurants, and other service facilities, roads, etc.) is allowed close to significant breeding or 8 nesting grounds, critical wetlands core zone; (iv) similar activities not related to infrastructure that support ecologically appropriate wetland tourism development; (v) all solid waste, sewage and litter will be cleaned and collected, and properly treated. In addition, a plant will be built to treat residential waste water and the treated effluent will irrigate landscaped areas.

Wetlands drainage activities may have the potential to impact the water balance. A detailed water requirement analysis and study based on water monitoring will be carried out during the implementation stage. Improved water allocation should ensure that the wetland’s water balance is maintained. Potential impacts to water quality, flora and fauna from the use of pesticides and fertilizers for shelter belt plantation, fodder field extension, greenhouses, aquaculture, and horticulture are minimal or nonexistent. According to the survey conducted in the subcomponent area, the adjusted cropping and cultivation system needs less irrigation and fertilizer than the existing rice and wheat cropping system. Pesticide and fertilizer applications will be minimized as much as possible through the use of integrated pest management and site-specific nitrogen management technology, and pesticides will only be applied by workers who have received training in their storage, handling, use, and disposal. The Project is investing heavily in farmer education and demonstrations regarding the financial benefits of targeted fertilizer use and integrated pest management technologies.

The development of the IEM demonstration area may have potential negative impacts to soil, water, air, and noise during construction. However, the construction duration will be short and the construction scope will be limited, which is mainly limited to retrofitting existing equipment and processes and proximity to the nearest residential area being more than 1 km, the noise impact will be minor. During project construction, construction activities would generate certain dust pollution in the project area. However, due to small scale and short-term construction activities, the dust pollution will be insignificant. Proper mitigation measures will be undertaken to reduce dust emission, such as sealing of building materials, covering of transportation materials (e.g. earth and solid wastes), and flushing of vehicle wheels. The main solid waste from the proposed project includes waste materials and excavation soil. Proper mitigation measures will be undertaken, such as cleaning up waste in a timely manner, transport using covered vehicles or closed containers, reuse of surplus materials, and dispose the waste in the landfill.

V. ENVIRONMENTAL MANAGEMENT PLAN

(See Appendixes: Appendix 2 Updated Summary Environmental Management Plan)

VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

13 As the subcomponents have minimal impacts on the environment according to PRC laws and regulations, public consultation is not required. However, as part of the project preparation the following consultations were undertaken: (i) The provincial government is the executing agency for the project. Provincial Development and Reform Commission and Provincial Environmental Protection Bureau are the partners for the project, and have been participating in all steps for the project design and subproject selection. They are also the main constituent entities of the PMO; (ii) Experts from industrial associations and research institutions have been invited to site visits or engaged as advisors for the project; and (iii) Consultations were conducted to gauge support for the project from local communities, which will be direct beneficiary groups.

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VII. FINDINGS AND CONCLUSION

14 The results of safeguard screening indicated that 11 subcomponents were classified as environmental category B and five as category C. The proposed scope change will significantly reduce the adverse environmental impacts as anticipated at appraisal. The EIAs that have been conducted are consistent with ADB’s Safeguard Policy Statements.

15 The overall environmental benefits of the project are expected to be significant. With the application of the recommended mitigation measures, the potential negative environmental impacts associated with the Project can be reduced to the point that no significant residual environmental impacts will occur.

10 Appendix 1

Appendixes: Appendix 1 Updated Key Environmental Concerns and Environmental Safeguard Requirement (Under Proposed Changes, adopted and revised from the original Appendix 2)

OUTPUT Subcomponent and ADB Code Key Environmental Environmental Implementing Environmental Category Environmental Safeguard Management Plan Agency (A, B or C) Concerns Requirement Component 1: Building IEM Institutional A-1 Nil MOFFDO Institutional Arrangements (C) Arrangements for IEM Application Effective Project A-2 Nil MOFFDO Management (C) Component 2: Spatial Planning and IWRM B-1 Nil MOFFDO Integrated Land and Planning (C) Water Resource Land Management B-2 Nil MOFFDO Management Demonstrations (C) Conservation Agriculture (C) B-3 Nil MOFFDO Water-saving Irrigation of B-6 IEE/SIEE EMP needed Ningxia Agriculture grape plantation (B)2 Reclamation Bureau Component 3: A: State Farm (Expanded Ningxia Agriculture Improving Rural beef, dairy farm and grape Reclamation Bureau Livelihoods production)3 Beef Production (B) C-1 Livestock waste IEE/SIEE EMP needed Dairy Production (B) C-2 Livestock waste IEE/SIEE EMP needed Vineyard and Winery (B) C-3 Waste water IEE/SIEE EMP needed

2 This subcomponent is added to replace the original subcomponents of construction of Xixia Canal (B-4) and Irrigation system (B-5), which greatly reduces the Environmental Impact Assessment requirement from ADB Environmental Category A down to Category B or C. 3 These subcomponents are not essentially changed in scope, but a little bit enlarged in scale or size, thus they remain in the Category B as from the ADB’s EIA requirement. Appendix 1 11

Implementing Agency YM NARB Ningxia Agriculture Bureau Reclamation YM NARB YM

nance Foreign Debt Office, SEIA =nance Foreign Debt Office, SEIA

needed Environmental Environmental Plan Management EMP needed EMP needed EMP needed EMP needed

Environmental Environmental Safeguard Requirement IEE/SIEE IEE/SIEE IEE/SIEE EMP IEE/SIEE

IEE/SIEE

IEE/SIEE IEE/SIEE

EMP = environmental management of Fi plan,= MOFFDOMinistry Environmental Environmental Concerns Wetland, Wetland, biod and Livestock waste Livestock

plantings biod. Wetland, cultural relics cultural relics

Wetland, biod. biod. Wetland,

Wetland, biod. biod. Wetland,

l environment examination; YM = Yinchuan Municipality Code Key

C-4 D-1 C-5 D-3 D4 D5 D-2 D7 Protection of D10 D8 D9 D11 D6 hu Lake (B) hu Lake Subcomponent and ADB Environmental Category Category Environmental C) (A, B or B: Yinchuan Municipality Municipality B: Yinchuan Yinxi Alternative Livelihoods (B) C: Hi-technology and and C: Hi-technology (B) Agriculture Ecological Yuehai Lake (B) Yuehai Lake Yinchuan Wetland (B) Wetland Yinchuan Sha Yinxi Conservation Program: Yinxi Wetland Yinxi Wetland Botanical Garden Botanical Garden Grassland set-aside (B) set-aside Grassland Piedmont Helanshan Management Conservation Cultural Relics Xixia Tombs Helankou Rock Carvings Carvings Rock Helankou Jiangjun Tower Tower Jiangjun Helanshan Nature Reserve Nature Reserve Helanshan (B) OUTPUT ADB = Asian Development Bank, EIA = environment impact assessment; summary summary environment initia impact assessment; SIEE = summary Component 4: Component and Conservation Tourism

12 Appendix 2 Appendix 2 Updated Summary Environmental Management Plan SUMMARY ENVIRONMENTAL MANAGEMENT PLAN FOR THE OVERALL PROJECT

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

Screening of potential environmental impacts of components and subprojects.bii Component A (including subcomponents A-1 and A-2) and subcomponents B-1, B-2 and B-3 of Component B are classified as Category C, with no physical adverse environmental impacts. All other subcomponents of Component B and C classified as Category B are listed below with the potential for negative environmental impacts, which are mainly a result of the following activities: construction, planting, cultivation of aquatic products, livestock husbandry, agroprocessing, tourism development, cultural relics protection, farm land loss and resettlement. The anticipated environmental impacts and mitigation measures are summarized below. The various significant adverse environmental impacts are identified for each subcomponent; these are detailed in the relevant SEIA or SIEE. 1. Design Phase Site and B-6 Poor project design may S L Lt Mitigation measures such as Design EPB location result in environmental and balancing local water resource institute PPMO economic costs. allocation will be incorporated into the project design, especially in selection of well drilling locations. D1 Conservation areas and G M Lt To minimize impacts, the Design EPB D2 critical wildlife may be subcomponent sites will be carefully institute PPMO D3 affected if sites are placed selected, based on consideration of D4 too close to significant environmental factors such as water breeding or nesting grounds, and air resources, and distance to critical wetlands, etc. the significant breeding or nesting grounds or critical wetlands. Rapid biological surveys should be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or of species of economic importance. Others No impact S L Lt To minimize impacts, the Design EPB except subcomponent sites will be carefully institute PPMO above selected based on the consideration of environmental factors such as

Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code water and air resources, and distance to residential areas. 2. Construction Stage All the subcomponents classified as Category B will support some infrastructure construction, which have potential negative impacts. Soil All Possible soil erosion as a S L St Soil will be collected at a designated Contractors EPB, result of soil excavation. area until it is reused locally for and IA PPMO building foundations. Water drainage systems will be constructed and exposed areas re-vegetated to help reduce soil erosion. Air All Dust in suspension from S L St Construction sites will be enclosed, Contractors EPB, construction activities and exposed storage sites covered, or and IA PPMO transportation dust reduced with sprayed water, on-site storage of materials will be minimized, water will be sprayed at construction sites and on dusty roads, materials will be transported in covered vehicles or in closed containers, vehicle speeds will be controlled, and transport routes selected with a view to minimizing dust. Appendix 2 13 All Pollution from vehicle and S L St Vehicles and construction Contractors EPB, construction machinery machinery will receive proper and IA PPMO emissions maintenance and be operated in compliance with relevant emission standards. Noise All Noise generated by vehicles S L St Vehicles and construction Contractors EPB, and construction machinery machinery will be required to and IA PPMO comply with relevant noise generation standards. Construction

14 Appendix 2

Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code arrangements will include prohibitions on the nighttime use of certain noisy machines (e.g. pile-drivers and concrete vibrators as well as vehicles) if the construction site is close to significant breeding or nesting grounds, critical wetlands or villages. Water Quality All Wastewater and solid waste S L St Appropriate septic disposal systems Contractors EPB, generated by site will be installed at construction and IA PPMO construction activities and sites. Drainage ditches will be built construction workers and temporary septic tanks installed for collection of wastewater. All construction equipment wash down areas will be equipped with water collection basins, including oil separators. Solid waste will be collected and transferred to the waste safety treatment plant. D1 Water quality reduction in S L St All excavation works should be Contractors EPB, D2 critical watersheds resulting confined to the dry season if and IA PPMO D3 from excavation for extension possible, and water quality of open waters or linkage frequently monitored. canals. Flora and D1 Displacement of significant G M St No construction works will be sited IA and EPB, Fauna D2 flora and fauna. Conservation adjacent to or near (within one km) contractors PPMO areas and critical wildlife may significant breeding or nesting D3 be affected if sites are placed grounds, critical wetlands, etc. too close to significant Rapid biological surveys should be breeding or nesting grounds, undertaken at all sites to ensure the critical wetlands, etc. absence of any threatened or endangered flora and fauna, or

Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code species of economic importance. D5 The resettlement of G L St Any resettlement and planting of IA EPB, endangered plants for the endangered plants should undergo PPMO botanical garden may cause detailed design and trials in loss of these plants because advance of any large-scale of their low survival rate. plantings. All Loss of or damage to S L St/Lt All construction works will be IA EPB, vegetation because of carried out so that damage or PPMO permanent or temporary land disruption to vegetation is occupation minimized. Trees or shrubs will be felled or removed only if they impinge directly on the permanent works or necessary temporary works. After temporary works are removed, sites will be re-vegetated. All Potential loss of native L L St Only indigenous species or exotic IA EPB, vegetation cover and species based on local trials to test PP biodiversity caused by suitability for local conditions should aquaculture and plantings for be planted. Fruit-bearing shrubs are the protective tree belt, as the first choice, as these serve as well as on lakeshores and food sources for wild birds in for the islands. Higher disease wetland subcomponents. Seedlings

susceptibility associated with should be sourced from certified Appendix 2 15 monoculture plantings of nurseries. species not suited to local ecological conditions. Historical, D7 Construction of cultural relics G L St All construction works intended IA EPB, Cultural, and protection may damage the protecting cultural relics should be PPMO Archaeological relics if improper techniques undertaken only after careful trials, are used, especially in the especially for Xixia Tombs and the case of Xixia Tombs and the Helankou rock carvings. Helankou rock carvings.

16 Appendix 2 Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code D8 Cultural sites may be G L Lt Mitigation measures will include IA EPB, D9 encountered during immediate suspension of PPMO D10 construction of the flood construction activities if any D11 system for Xixia Tombs. archaeological or other cultural relics are encountered. The relevant cultural authority, as well as the PPMO, will be promptly notified, and construction will resume only after a thorough investigation. Land All Certain land will be S L St Compensation or land exchange is IA EPB, Acquisition permanently or temporarily required if any farmland (or fish PPMO occupied for the construction ponds) are occupied. Temporary works land occupation will be planned well ahead of construction to minimize the impact of the disturbance. 3. Operational Phase 3.1 Animal Husbandry and Processing Solid waste C1 Solid waste from breeding of L M Lt The solid waste will be collected, IA EPB, C2 cattle, cows and water dried and sterilized and then used PPMO C4 poultry as compost fertilizer C1 Solid waste from beef cattle L M Lt The solid waste will be collected, IA EPB, slaughtering and processing dried and sterilized and then used PPMO as compost fertilizer C1 Solid waste from contracted S L Lt The solid waste will be collected IA and EPB, household breeding sectors and treated by the small anaerobic contracting PPMO biogas production system households (see ”wastewater” below), and/or then used as artificial farmyard fertilizer. Wastewater C1 Sewage from the cattle L M Mt The wastewater from beef cattle IA EPB, breeding farms, including the breeding will be discharged to the PPMO

Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code central breeding site and the drainage pipeline and piped to the fattening demonstration site sewage treatment plant in the Demonstration Area. After treatment, the water quality will meet the Grade II standard, and will be used for irrigating trees and grassland in the Demonstration Area. The remaining treated water will be discharged into No. 32 Branch Drainage Canal (for Grade V water quality). C1 Sewage from the L L Lt (See treatment for wastewater from IA EPB, slaughterhouse the breeding site, above) PPMO C1 Waste water from the S L Lt Sewage will be washed from the IA and EPB, C2 contracted household cowsheds and then treated by an contracting PPMO C4 breeding cowsheds anaerobic digester in the biogas households generation and utilization system. After treatment, the residue will be used as compost fertilizer and the liquid for irrigation of farm land or greening of yards. Biogas will supply fuel for the households.

Air C1 Odor from the central cattle L L Mt Air-exchange and other ventilation IA EPB, Appendix 2 17 C2 breeding site and the facilities will be installed. Cowsheds PPMO fattening site. Dust from feed will be thoroughly cleaned twice a processing. day. An airtight feed processing workshop will be used with a gas skirt to collect dust. C1 Air pollution and odor from L L Mt The processing workshop will be IA EPB, the slaughterhouse airtight with a gas skirt; waste gas PPMO could be treated by installing air- exchange and other ventilation facilities, including adsorption by

18 Appendix 2 Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code active carbon. De-sulfurization equipment will be used for boiler smoke and carbon dioxide (CO2). C1 Air pollution and odors from S L St Air-exchange and other ventilation Contracting EPB, C2 the contracted household facilities will be installed if required. households PPMO breeding cowsheds Cowsheds will be thoroughly cleaned once a day. Noise C1 Noise generated by S L St Equipment with good performance IA EPB, C2 equipment and machinery at and low noise will be selected, and PPMO the breeding and fattening brackets used to minimize vibration site, as well as at the in installed equipment. Machinery slaughterhouse. will be positioned appropriately, and maintained regularly, and personal protection provided for workers. 3.2 Agroprocessing and Winery Wastewater C3 Wastewater has potential L L St After treatment, the water will be IA EPB, D2 impacts, particularly for the suitable for watering surrounding PPMO winery, if not properly treated grass and trees, or will be D3 discharged into a drainage furrow. C5 Solid Waste Same as Impacts of improper disposal S L St The plant residues such as grape IA EPB, above of plant residues such as stems and skins should be collected PPMO grape stems and skins, as and sold as livestock feed, and/or well as boiler slag in the be composted as organic manure. processing plants. Boiler slag should be collected and used for road repairs, and /or sold as raw material for cement making. Air Pollution Same as Effluvia produced during S L St Waste gas could be treated by IA EPB, above processing (such as CO2 installing air-exchange and other PPMO from grape fermentation ventilation facilities, including process) and smoke from adsorption by active carbon. steaming stoves will degrade

Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code air quality. Noise Same as Excessive noise from S L St Equipment with good performance IA EPB, above equipment can negatively and low noise will be selected, and PPMO impact the health of workers. brackets used to minimize vibration in installed equipment. 3.3 Eco-tourism D1 Different types of ecotourism L L Mt Mitigation measures include: IA EPB, D2 will be developed after (i) tourism planning and PPMO construction is complete. D3 environmental guidelines developed Implementation of tourism during the earlier phase of D7 projects has the potential subcomponent implementation D8 result in impacts on any should be strictly followed in D9 locally significant flora and implementing tourism projects. fauna, which may be (ii) No development of tourism D10 displaced for development of physical infrastructure (buildings, D11 sites; loss of wetland and restaurants and other service vegetation for trail facilities, roads, etc.) is allowed in development and as a result sensitive core areas of the wetland. of on-and-off-trail activities; displacement of wildlife as a (iii) No development of tourism result of tourist presence; physical infrastructure (buildings, excessive use of local restaurants, and other service facilities, roads, etc.) is allowed

resources, in particular water; Appendix 2 19 localized water pollution from close to significant breeding or solid waste, sewage, and nesting grounds, critical wetlands litter; localized water and air core zone, etc. pollution from vehicles and (iv) Various non-infrastructure power boats. activities that support ecologically appropriate wetland tourism development. (v) All solid waste, sewage and litter will be cleaned and collected, and properly treated. A plant will be built

20 Appendix 2 Subject Sub- Potential Negative Scope Magnitude Duration Proposed Mitigation Measures Responsibility component Environmental Impacts i Imp. Sup. Code to treat residential waste water and the treated effluent will irrigate landscaped areas. 3.4 Water Balance D1 The water balance may be L L St A detailed water requirement IA EPB, D2 impacted as a result of the analysis and a study based on PPMO wetland and botanic garden water monitoring will be carried out D3 development in the project during the implementation stage of D7 area. the subcomponent. Proper water allocation should ensure that the water balance for the wetland is maintained. C1 No impacts are anticipated L L St Not required IA EPB, C2 from excessive use of PPMO irrigation water by cropping C3 adjustments for fodder, C5 grapes, horticulture, etc. 3.5 Use of Pesticides and Fertilizers All except Impacts to water quality, flora S L St Pesticide and fertilizer application IA and EPB, D8, D9, and fauna from the use of should be minimized as much as contracting PPMO D10, D11 pesticides and fertilizers for possible, and pesticides should only households shelter belt plantation, fodder be applied by workers who have field extension, greenhouses, received training in storage, aquiculture, horticulture, etc. handling, use, and disposal. Workers should be issued protective equipment. Dur. = duration: St = greater than 1 day, but less than 1 year; Mt = 1—10 years; Lt = Greater than 10 years; EPB= Environment Protection Bureau; IA = implementing agency; Imp. = implementation; Magn. = magnitude: L = low; M = medium; H = high; U = uncharacterized; PPMO = provincial project management office; SEIA = summary environment impact assessment; SIEE = summary initial impact examination; Sup. = supervision. Notes: Scope (e.g., spatial): S = site, effect restricted to a small area within an intervention site; L = local, effect restricted to intervention site; Sr = subregional, effect extends beyond the intervention site but falls within the local watershed; R = regional, effect extends throughout the subcomponent area; G = global, effect extends beyond the subcomponent area. 21

Appendix 3 Updated Environmental Monitoring Plan

A. Introduction 16 The following revised Environmental Monitoring Plan (EMP) addresses the activities that were added or modified as part of the change in scope to the Ningxia Integrated Ecosystem and Agricultural Development Project. The original EMP is attached for reference purposes.

17 The Ningxia Hui Autonomous Region Government (NHARG) is the executing agency represented by the NFD, under which a Project Management Office (PMO) had been established. The PMO is responsible for the implementation of the environment management plan. Under the project change in scope, the PIAs include Ningxia Finance Department (NFD), Ningxia Agriculture Reclamation Bureau (NARB), and Yinchuan Municipality Government (YMG).

B. Summary of the changes requiring an EMP revision 18 Project’s subcomponents requiring changes to their Environment Management Plan are presented in Table 1 based on APP8: Screening of environment impacts.

22 Appendix 3 Table 1 Subcomponents that need for updating environmental monitoring plan

Component Subcomponent Cat. Change in Scope Anticipated Proposed Mitigation Institutional (Id Code) Environment Impacts Measures Responsibility Component 3: Beef Production B Central beef cattle Effluent from central Animal dung will be NARB Improving (C-1) breeding herd will be breeding herd and collected and dried for Rural increased from 750 to household units bio-fertilizer utilization from Livelihoods 1500 head. central herd breeding units. Beef slaughterhouse Households breeding units has been completed will be installed with biogas using government digesters to treat effluent. funds and the loan Wastewater treatment savings will be used facilities will be constructed for fodder to treat wastewater from mechanization and digesters and breeding conservation units. agriculture equipment. Dairy Production B Five distributed dairy Cow manure and Animal dung will be dried NARB (C-2) farms will be cowshed wastewater and and composted for regrouped into one effluent impact on fertilizer. Other wastes and farm. groundwater. cowshed wastewater will The fodder base will be treated through central be increased by 300 biogas plant at Pingjipu ha using funds saved Dairy Farm, which include from NAB’s fodder (i) solid separation, (ii) program. anaerobic and aerobic digestion, and (iii) sludge drying. Vineyard and B Part 1: increased Wastewater and solid Sewage treatment of waste NARB Winery (C-3) scope from 10,000mu waste from grape water. Solid waste will be to 36,000mu; processing. composted and disposed of Introduced 36000mu Minor impacts of gas. according to government regulations. Gas and odor of water saving No adverse impact from

Component Subcomponent Cat. Change in Scope Anticipated Proposed Mitigation Institutional (Id Code) Environment Impacts Measures Responsibility technology the reduced use of will be managed through Part 2: Increased for irrigation by cropping height of chimney venting. storage and grape adjustment for fodder, crushing and grapes, horticulture, etc. investment into The water-saving equipment for grape irrigation programs are processing facility expected to result in expansion substantial improvements to water use efficiency and reduced water logging of soils. Yinxi Alternative B Reduced planting Not applicable (no YMG Livelihoods areas from 1700ha to significant negative Development 260ha impacts) (C-4) High Technology B Shift the Refer to C-1, 2, 3. NARB Ecological implementation project Agriculture activities from NAB to Development NARB. (C-5) Vocational training

and infrastructure Appendix 3 23 agriculture have been done using government funds and will be removed from the project. Component 4: Yinchuan Wetland B Wetlands conservation Water quality reduction in All excavation works YMG Conservation (D-1) of Tonggui, Yueya, critical watersheds should be confined to the and Tourism Sanding, and Baohu resulting from excavation dry season, and water lakes have been done for extension of open quality frequently or will be undertaken waters or linkage canals. monitored.

24 Appendix 3

Component Subcomponent Cat. Change in Scope Anticipated Proposed Mitigation Institutional (Id Code) Environment Impacts Measures Responsibility by government funds. Displacement of No construction works will The loan savings are significant flora and be sited adjacent to or near reallocated to the fauna. Conservation (within 1 km) significant public education and areas and critical wildlife breeding or nesting exhibition facilities in may be affected if sites grounds, critical wetlands, Shahu and Mingcui are placed too close to etc. lakes. significant breeding or Rapid biological surveys nesting grounds, critical should be undertaken at all wetlands, etc. sites to ensure the absence of any threatened or endangered flora and fauna, or species of economic importance. Shahu Lake (D-2) B Reallocate funds Disturbance to significant Location of work in NARB savings from the breeding nesting grounds, non-sensitive ecological completed aquatic critical wetlands, etc. area and at least 2 km plant using Water balance is away from the core bird government funding to disrupted habitats. the education center. Declining water quality Major works completed in Delete the holiday from increased tourism non-nesting seasons. houses and use and agriculture in the Careful monitoring of water savings for the catchment balance increased cost of the Waste and sanitation education center. programs for tourist sites and development and demonstration of site-specific nitrogen management Yuehai Lake (D-3) B Replace aquatic Potential water pollution Same as D-1. YMG poultry plant and use due to poultry production

Component Subcomponent Cat. Change in Scope Anticipated Proposed Mitigation Institutional (Id Code) Environment Impacts Measures Responsibility loan savings to will be removed. develop eco-tourism Other impacts are same facilities. as D-1, 2. Helanshan B No change in scope. Not applicable (no NFD Piedmont GEF funds will be significant negative YMG Conservation reallocated to support impacts) Management IEM demonstration (D-5) area.

Appendix 3 25 26

C. Monitoring Requirements and Indicators 19 The Project will utilize appropriately qualified monitoring service providers for environmental monitoring, and proposes to contract these through the NEPB. The subcontractors will visit intervention sites at key times to ensure that mitigation measures are being implemented, and that negative impacts are not taking place. Monitoring requirements for the main activities are presented in Appendix 4 of the original SEIA.

20 For all construction activities, appropriately qualified monitoring experts should visit each construction site regularly during key activities to ensure that recommended mitigation measures are being implemented. Special emphasis will be given to ensuring that no construction is sited adjacent to or near (within 1 km) of significant nature reserve core zones, breeding or nesting grounds, critical wetlands, etc.

21 For all activities with the potential to impact water quality, environmental monitors should visit the sites regularly, particularly during construction preparation, construction activities, planting, agro-processing, and pesticide and fertilizer application. Ambient water quality should be monitored in situ to ensure that adequate standards are maintained. At a minimum, monitoring should include temperature, conductivity, total suspended solids, turbidity, pH, and dissolved oxygen both above and downstream of any works. The results should be compared with the Environmental Quality Standards for Surface Water (GB3838-2002) to ensure no significant reduction in water quality occurs.

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

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

24 A final report should be prepared summarizing activities, implementation of mitigation measures, impacts observed, and additional measures required. A semi-annual report on implementation of the EMP will be submitted to ADB by the Ningxia Hui Autonomous Region Finance Department of (NFD), as the Executing Agency of the Project.

D. Institutional Arrangements 1. Provincial Project Management Office 25 A provincial project management office (PPMO) has been established in the NFD, which will have responsibility for implementation of the environmental management plan of the Project. Working under the supervision of the Ningxia EPB and the NFD, one of the key duties of the PPMO is to supervise implementation of all environmental mitigation measures and to monitor programs recommended in the original SIEE and this UEMP. The PPMO shall also be responsible for reporting the EMP findings in each Progress Report. A suitable institution that has been certified by the Ningxia EPB will be contracted to undertake environmental monitoring and reporting for the PPMO. The environmental monitoring institute (EMI) will (i) monitor and supervise implementation of all project environmental requirements, including mitigations noted in the original SIEE and this UEMP; (ii) coordinate development and implementation of the environmental compliance monitoring program, as well as liaise with provincial and local EPBs; and (iii) organize the environmental monitor training program. 27

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

2. Implementing Agencies 27 The sub-borrower and their supporting IA for each subcomponent is fully responsible for complying with all environmental requirements, including implementation of environmental mitigation measures specified in the original and SIEE this UEMP, so as to ensure that all related national and provincial environmental regulations and standards are met. The IA for each subcomponent will appoint an environmental manager, who will conduct self-monitoring, and prepare a quarterly report reflecting the IA's environmental performance, and submit it to the PPMO for review. The environmental manager will also participate in the monitor training workshops organized by the PPMO and Ningxia EPB.

3. Ningxia Environmental Protection Bureau 28 Ningxia EPB will review and approve the Environmental Assessment Report of the project based on the PRC’s regulations and guidelines, and requirements specified in the original SEIA and this UEMP. Ningxia EPB will guide and support the EMI contracted by the PPMO in establishing key indicators for measuring the success of ecosystem protection in terms of ecological and environmental improvements. Ningxia EPB, in cooperation with the PPMO, will organize training sessions for the Yinchuan Municipal EPB and IA staff on environmental monitoring.

29 The EMI will undertake the following specific tasks: (i) meet the activity site manager and discuss and review the proposed work and EMPs; (ii) inspect work activities and implementation of the environmental mitigation measures, and assess the performance of such measures; (iii) undertake any necessary in-situ water quality, biodiversity and other environmental monitoring; (iv) order additional mitigation measures, if required; and (v) prepare monitoring reports. The EMI will report the monitoring results to Ningxia EPB and the PPMO according to the requirements of the UEMP. E. Enforcement Arrangement 30 The municipal and relevant county and/or EPBs will supervise and report any failure to implement mitigation measures or any significant adverse environmental impacts to Ningxia EPB, the NFD, and the PPMO. The authorized Ningxia EPB or municipal and relevant county and/or district EPB will be responsible for halting activities if mitigation measures are not being implemented or if significant negative environmental impacts are occurring. Activities should not recommence until the identified problems have been adequately addressed. F. Summary 31 This Revised Environmental Monitoring Plan is the guideline for implementing the environmental monitoring plan updated under the Project’s proposed changes in scope, to meet the needs of PRC’s environmental requirements for construction activities. However, if there is any doubt or questions arising due to the non-compliance with the original SEIA, it should be dealt with care to find out a proper solution to meet the PRC’s environmental requirements as well as the ADB’s Environmental Safeguard Policy Statements.

32 The contents in this document supposed to be coincident with the UEIA, another stand alone document submitted to ADB as well as to the PPMO. 28

Appendix 4 EIA registration forms

EIA registration form I Title: 3.6×104 mu (= 2 400 ha) grape water-saving irrigation (drip irrigation) system project Subcomponent implementation (construction) Unit: the Ningxia Agricultural Reclamation Bureau, herein as NARB Time of submitting: 30th of November 2010 Title of Project 3.6×104 mu (= 2 400 ha) grape water-saving irrigation (drip irrigation) system Construction NARB Unit Legal Wang Yongzhong Contact Sun Liping Representative Person Address No. 57, Minzu North Street, , Yinchuan City Tel: 0951-3971913 Fax: 3971913 Post Code 750001 Location of Yuquanying, Huangyangtan, Lianhu, Nuanquan Farm, Helanshan Farm & Construction Pastrue, Yinchuan Forest Farm Site Construction New construction Industrial Farming (Plantation) Category Category & Code Land Area (m2) 3.6×104 mu (2400 ha) Net Area Same as the left (m2) column Total Investment 6819 Environmental 6819 Ratio of 100% (×104RMB) Protection EP/Total Investment (×104RMB) Projected Finish July of 2011 Estimated 180 days & Operation Working Date Days per Year A. Construction Content & Scope: Well drilling and expanding, 76; Water pool & pond, 5; Transmission line: 7.5 km; Irrigation Ditch & Canal 8000 m; Other Facilities for Drip Irrigation: UPVC pipe, 560×103m; PE pipe: 7 000×103m. The original design was to reclaim a piece of land (88500 mu, equal to 5900ha) in the eastern piedmont of Helan Mountain for planting grape, jujube and Chinese wolfberry (Lycium chinensis) as well as some other economic crops with ecologically water-saving technology. Under the proposed change in scope, the contents, the site location, the amount of loan, and the ideas of the subcomponent were not changed, except for the implementation unit. Instead of by the WRB of NHAR and the Yinxi Ecological Forest Management Office, this subcomponent will be implemented by the NARB, and the loan savings from the cancelled canal construction, which was supposed for irrigating the reclaimed land, is adjusted to construct a water-saving drop irrigation system for 3.6×104 mu (2400 ha) of grape plantation within the original site. B. Materials and energy needed: Water resources, 10×106m3; and Electricity: 2.5×106kWh. C. Water and Energy Consumption: Item Consumption Quantity Item Consumption Quantity 29

Water (t/yr) 10×106m3 Fuel Oil (t/yr) Electricity 2.5×106 Fuel Gas (kWh/yr) (m3/yr) Coal (t/yr) Others D: Waste water generation: No industrial or residential waste water will be generated in this subcomponent project. E: Natural Conditions in the Surrounding areas: Within a few state-owned farms, plain land, 1109 m a.s.l., MAT 8.7°C, MAP 206.3 mm, MAE 2160 mm, sunshine 3140h, cultivated land with wheat, corn, paddy rice, grape, Chinese wolfberry, surrounded by windbreak belt, far from residence areas. F. Brief of the production processes and/or techniques: Well/pool→Water (with fertilizers added in intermittently; and/or filtering & pressure adjustment through valves) → Main pipe line → Sub-main pipe → Small pipe→ Capillary pipe → Dripper/Emitter → Absorbed by grape roots. 1. Drill up wells and build up pools or ponds; 2. Pump water from the well or pool or pond into the main pipe line with filters; and at the same time 3. Add some nutrients into water, if need, and through valves adjust the water pressure in the main pipe; 4. Water flows from the lined main pipe through sub-main, small, capillary pipes and drippers/emitters to the soil full of grape roots; 5. Water is absorbed by grape foots. Pipe line construction process: VIII. Survey and lay out lines; IX. Dig up the ditches into 1.3m depth, drain up water away and fill concretes to the ditch base; X. Lay down the pipes; Check the pipes and the rubber connection seals or liners before backfilling the pipes up; XI. Install the valve system in a well management chamber. The terminal flange of a well should leave a distance of at least 100mm to the well bottom. The well bottom is 120-160cm in diameter and 120-140cm in depth, and the mouth-top of a well is 70cm in diameter; XII. Backfill pipes up with pressed earth. The construction site is located in the piedmont area of Helan Mountain beyond to the farmland fringe, and thus distant to the residential area. The digging operation area is within a limited area and there will be no large quantity of dusts and waste water generation. There will be no large impacts of noise on local residents during the construction period, since it’s distant to the residential area. In general, there is no sized impact on surrounding areas. G. Proposed mitigation measures against potential environmental impacts (including construction and operation periods): In construction period: 1. Dispose of any on-site generated rubbish and solid wastes timely, and properly transport the wastes to sanitary landfill place. 2. No temporal road construction; no disturbance to vegetation cover at the construction ground and its vicinity. 3. Pile up the excavated side pilings at assigned proper ground. The project itself is a water-saving drip irrigation and ecologically favorable project, and it will have no pollution risks to the environment during its operation period. H. Approval comments: Approved. Official Signature: (With Official Seal here) Date: 13th of Dec. 2010 30

EIA Registration Form II Title: IEM Demonstration and Training Management Center in Eastern Piedmont of Helan Mountain Subcomponent implementation (construction) Unit: the Integrated Provincial Project Management Office of the NFD Time of submitting: 30th of November 2010 Title of Project IEM Demonstration and Training Management Center in Eastern Piedmont of Helan Mountain Construction IPPMO Unit Legal Cui Yadong Contact Gan Quan Representative Person Address No. 416, Jiefang West Street, Yinchuan City Tel: 13639589293 Fax: 5059496 Post Code 750001 Location of Haoyuan Village, Zhenbbeibu Town, Yinchuan City Construction Site Construction New construction Industrial Category Category and Code Land Area (m2) 1.35×104 m2 Net Usable 6300m2 Area (m2) Total Investment 2300 Environmental 115 Ratio of 5% (×104RMB) Protection EP/Total Investment (×104RMB) Projected Finish Nov. of 2011 Estimated 280 days & Operation Working Date Days per year A. Construction Content & Scope: The original design was to build up 200 households (about 30000m2) ecological agricultural greenhouse within the Ecological Agricultural Demonstration Garden located at Zhenbeibu Town, with energy-saving technologies in materials, methods, and measures for construction and installation, to maximize the effects of natural day-lighting, thermal isolation and so on. Under the proposed change in scope, the contents, the site location, the amount of loan, and the ideas of the subcomponent were not changed, except for the implementation unit. Instead of by the NAB of NHAR, this subcomponent will be implemented by the IPPMO, and the loan savings from the original design is adjusted to construct an IEM Demonstration and Training Management Center within the original region, i.e., 200m away from the 200 households ecological agricultural greenhouse. The building will use energy-saving technologies in day-lighting, thermal isolation and construction structure. The project will use grants from GEF to build up an integrated ecosystem management demonstration and training center, aiming at raising the awareness and techniques as well as skills of the local people through demonstration and training programs of biodiversity conservation, land deterioration prevention, ecosystem restoration and other similar contents. The Center will have several functional parts such as education and training division, data management center, administrative office, and expert’s apartments, and so on, taking up an area of 13500 m2 land, among which the build itself will occupy 6300m2, and waters, 31 gardening and greening 7200m2. B. Materials and energy needed (including names and quantity), as well as installation and facility names (boilers, dynamos, etc.): Reinforcing steel bars: 465t; cement 960t, rock 880m3, windproof glass 7700m2. C. Water and Energy Consumption: Item Consumption Quantity Item Consumption Quantity Water (t/yr) 2500 Fuel Oil (t/yr) Electricity 3.0×104 Fuel Gas (kWh/yr) (m3/yr) D: Waste water generation and disposal: The amount of residential living waste water generated by Center’s operation will be small, and will be treated through an environmentally-harmful-free sanitary system within the Center. No wastes will be discharged outside the Center. E: Natural Conditions in the Surrounding Areas: The construction site is located at Zhenbeibu Town, Yinchuan City, west near to provincial highway 201 and Toll gate Gaojiazha. Geomorphologically this region is a flood alluvia plain in the eastern piedmont of Helan Mountain, with sandy and gravel or even rocky surface. The sediments under the topsoil consist mainly of loamy sands, covered with natural desert steppe vegetation that is simple in structure on the ground. There is no salinization in the soil. The landscape is roughly Gobi-like, with sparse vegetation here and there. The surface soil is loose and gravelly textured, open to undergoing wind and water erosion in mid- to heavy-degree. This region receives only a 200mm precipitation annually and thus there is no stable agricultural production in the region if without proper irrigation. However, with the assistance of a few Japanese loans for combating wind erosion through vegetation restoration before, the environment of this region has been much changed ecologically, forming some artificial vegetation of windbreak forest and grassland. The east, south and north sides of IEM Demo Center are windbreak forest plantations, and the west side is vineyard plantation. There is no residence around the construction area. F. Brief of the production processes and/or techniques: Not applicable, as for production techniques or processes. The construction is divided into three stages: Planning and designing, construction and ready to operation. G. Proposed mitigation measures against potential environmental impacts (including construction and operation periods): In construction period: Spray water on the construction materials daily to keep certain degree of moisture, and to reduce dusts impact on surroundings. Dispose of any on-site rubbish and solid wastes timely, and properly landfill them to a sanitary place. The residential wastes should be collected daily and transported to a nearby landfill place for end treatment. In operation period: A small amount of waste water will be generated daily and disposed of through environmentally-friendly lavatories for preventing water pollution and soil pollution. After finishing the construction, the Center will play its role as a functional base of demonstration and training. By that time, the main energy for its operation comes from the solar radiation, biogas and some other clean energies alike, thus there will be no large quantity of waste water discharge and waste gas emission. H. Approval comments: Approved.

Official Signature: (With Official Seal here) Date: 13th of Dec. 2010 32

EIA Registration Form III Title: Popular Science Education Center at Mingcui Lake Wetland Park Project Subcomponent implementation (construction) Unit: Wetland Management Office of Yinchuan Municipality Time of submitting: 30th of November 2010 Title of Project Popular Science Education Center at Mingcui Lake Wetland Park Construction Unit Wetland Management Office of Yinchuan Municipality Legal Ma Jianguo Contact Ma Feibiao Representative Person Address No. 25, Zhongshan South Street, Yinchuan City Tel: 6017683 Fax: 6017683 Post Code 750001 Location of Mingcui Lake Wetland Park, Yinchuan City Construction Site Construction Retrofitting and Industrial Category Refurbishing Construction Category and Code Gross Land Area 2000m2 Net Usable 4822m2 (m3) Area (m2) Total Investment 278 Environmental 19 Ratio of 5% (×104RMB) Protection EP/Total Investment (×104RMB) Projected Finish & Jan. of 2011 Estimated 300 days Operation Date Working Days per year A. Construction Content & Scope: The original design was to establish a few wetland protection stations in flood plains of Yellow River around Yinchuan City, as well as in Mingcuihu Wetland Park and Haibaohu Wetland Park, for developing some training and education programs of wetland conservation. Under the proposed change in scope, the amount of loan, the contents, the regional location, and the ideas of the subcomponent were not changed, except for the local site location. Instead of building up a wetland museum in Haibaohu Lake, this subcomponent will use the loan savings for expanding (through in-and-out retrofitting and refurbishment) the Popular Science Education Center at Mingcui Lake Wetland Park. In particular, the subcomponent will establish a Popular Science Education Center, mainly through refurbishment of the ground floor of the View Tower as a Popular Science Education Classroom; and through retrofitting of the second floor of the View Tower as a Popular Science Exhibition Gallery. The total floorage area of the proposed Education Center after this expansion is about 3200m2. B. Materials and energy needed (including names and quantity), as well as installation and facility names (boilers, dynamos, etc.): Reinforcing steel bars: 37t; Elastic Membrane: 2500m2. Equipments: Projector, 1 set; DVD, 2 sets; HiR TV, 2 sets; and Touch Pad Computer, 2 sets. C. Water and Energy Consumption: Item Consumption Item Consumption Quantity Quantity Water (t/yr) 20 Fuel Oil (t/yr) 3 33

Electricity 100 Fuel Gas (kWh/yr) (m3/yr) D: Waste water generation and disposal: The amount of residential living waste water generated by Center’s operation will be small, and will be discharged from the original treatment system and outlet pipes in Mingcui Lake Wetland Paark. E: Natural Conditions in the Surrounding Areas: The Mingcui Lake Wetland is located at Zhangzheng Town, Xingqing District, 10 km eastern from the downtown area of Yinchuan City. This area has a climate of, MAT: 8.7°C; MARH: 58%; MAP: 193.8mm; MAE: 1577.5mm. The landscape in this area is an irrigated oasis + a few wetlands on Yinchuan plain, with a combination of vegetation types including lowland salty meadows, grass swamps and cultivated croplands. The construction site is located at the central part of the Mingcui Lake Wetland Park, distantly surrounded by sightseeing landscapes and tourism greening belts, as well as some protected wetlands. F. Brief of the production processes and/or techniques: 1. The construction process for the Popular Science Education Classroom on the ground floor: Planning & Design → Functional zoning → Retrofitting and refurbishing construction → Pipes and wires layout → Equipments installation and commissioning → Samples layout. 2. The construction process for the Popular Science Exhibition Gallery on the second floor: Planning & Design → Functional zoning → Retrofitting construction (Steel frame welding, corrosion-proof treatment, and elastic membrane installation) → Samples layout for exhibition. This subcomponent is a retrofitting process within an original building, thus the generation of construction wastes will be limited and there is no waste gas generation during the construction period. Only a small amount of solid wastes and noise might be generated which can be minimized through applying a few simple mitigation measures. G. Proposed mitigation measures against potential environmental impacts (including construction and operation periods): In construction period: Solid wastes generated on-site by construction should be timely and properly collected and transported to a nearby landfill place for sanitary disposal. Although the impact of noise brought about by construction will be confined within a limited area, and disappear after finishing the construction, there still is a need for mitigating the noise impact during the construction period, such as covering with a noise isolation casing. In operation period: A small amount of waste water will be generated daily, and it can be properly disposed through environmentally-friendly waste water treatment facilities, which has already been installed within the View Tower of the Park. H. Approval comments: Approved.

Official Signature: (With Official Seal here) Date: 13th of Dec. 2010

i Subcomponent Code: Refer to the “Subproject Code” column of the table: KEY ENVIRONMENTAL CONCERNS AND ENVIRONMENTAL SAFEGUARD REQUIREMENT (Under Proposed Changes, adopted and revised from the App 2) ii Categories are described in: ADB. 2003.Environmental Assessment Guidelines. Manila.