Environmental Assessment Report

Updated Environmental Assessment Report Summary Environmental Impact Assessment Project Number: 38660 October 2011 People’s Republic of China: Ningxia 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. I 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 Yinchuan 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

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