PRC: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project – Environmental Monitoring Report (For Period As of December 2018)

Environmenta l Monitoring Report

Project Number: 44035-014 January 2019

PRC: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project – Environmental Monitoring Report (For Period as of December 2018)

Prepared by the Project Management Office of Ningxia Hui Autonomous Region for the Asian Development Bank.

This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, Management or staff, and may be preliminary in nature.

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

Environmental Monitoring Report

Project Number: 44035 January 2019

PRC: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

Prepared by Ningxia Project Management Office

This report has been submitted to ADB by the Ningxia Hui Autonomous Region Government Project Management Office and is made publicly available in accordance with ADB’s Access to Information Policy (AIP, effective since on 1 January 2019). It does not necessarily reflect the views of ADB.

Project Loan Number: 2973-PRC

ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

Environmental Monitoring Report (For Period as of 31 December 2018)

Submitted to ADB

Ningxia Irrigated Agriculture and Water Conservation

Demonstration Project PMO January 2019

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CURRENCY EQUIVALENTS (as of 31 Dec 2018, source from website of the Bank of China)

Currency unit – yuan (CNY) CNY1.00 = $0.1453 $1.00 = CNY 6.8785

ABBREVIATIONS ADB – Asian Development Bank AQG – Air Quality Guideline BOD5 – 5-Day Biochemical Oxygen Demand CNY – Chinese yuan CO – Carbon Monoxide COD – Chemical Oxygen Demand CPS – Country Partnership Strategy EA – Executing Agency EHS – Environment, Health and Safety EIRR – economic internal rate of return EIRF – environmental impact registration form EIS – environmental impact statement EMC – environmental management consultant EMP – environmental management plan EMS – environmental monitoring station EPB – environmental protection bureau GDP – gross domestic product IA – implementing agency IEE – initial environmental examination IEM – independent environmental monitor MEP – Ministry of Environmental Protection NARC – Ningxia Agricultural Reclamation Group Company, Ltd NFD – Ningxia Finance Department PIO – project implementing office PMO – project management office PRC – People‘s Republic of China RP – resettlement plan SPS – Safeguard Policy Statement TDS – total dissolved solid TEIAR – tabular environmental impact assessment report WUA – water users association.

WEIGHTS AND MEASURES dB(A) – decibel (“A” weighting filter) ha – hectare kg/d – kilogram per day km – kilometer km2 – square kilometer kPa – kilopascal m – meter m2 – square meter m3 – cubic meter m3/d – cubic meter per day m3/s – cubic meter per second mg/m3 – milligram per cubic meter ML – megaliter Page | iii mm – millimeter mu = Chinese unit of land area equal to 1/15 ha or 667 m2

NOTE In this report, "$" refers to US dollars.

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

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Contents 1 Introduction ...... 1 2 Institutional Setup and Responsibilities for EMP Implementation and Supervision, Institutional Strengthening and Training ...... 7 2.1 Responsibilities and Authorities for Implementation 7 2.2 Institutional Strengthening and Training 14 3 Environmental Mitigations and Compensation Measures Implemented in the Reporting Period ...... 21 3.1 Environmental Clauses in Civil Works Contracts 21 3.2 Environmental Mitigations and Compensation Measures Implemented in the reporting period 21 4 Summary of Environmental Monitoring ...... 43 4.1 Monitoring plan 43 4.2 Monitoring Results 48 4.3 Cost Estimates for Environmental Management 50 4.4 Performance Indicators: 51 4.5 Public Consultation 53 4.6 Grievance Redress Mechanism 55 4.7 Reporting and Supervision 57 5 Conclusion s and Recommendations ...... 63 Key issues 63 Suggestions 63 Appendices Appendix 1 Satellite maps and photos ...... 64 Appendix 2 Reference:Vegetation status in Ningxia(related to the Project Area) ...... 79 Appendix 3 Reference:Soil status in rural Ningxia (related to the Project Area) ...... 82 Appendix 4 Reference:Climate in Ningxia (related to the Project Area) ...... 83 Appendix 5 Reference:Environment Quality in in Ningxia (related to the Project Area) ... 85

Figure Project Layout

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1 Introduction

General Introduction

1. Monitoring and reporting were required and defined in the Project Agreement, PAM and EMP. So far, only one environmental monitoring report (EMR) covering January- June 2014 was submitted and disclosed on the ADB project website in January 2015. However, the EMRs thereafter were missing. This is the second semi-annual environmental monitoring report for the Ningxia Irrigated Agriculture and Water Conservation Demonstration Project (the Project or this Project) for the period as of 31 December 2018. It is prepared by the PMO with the assistance of the independent loan implementation environmental consultant (LIEC). The LIEC has been providing project implementation consulting services to the PMO. The PMO resumes the reporting and submits this safeguard report at end of January 2019. Future EMRs will be submitted to ADB semiannually until project completion.

2. This report describes the activities undertaken in the period as of 31 December 2018 with respect to the implementation of the environmental management plan (EMP) of the Project components. This report mainly contains the following activities and topics: (i) the environmental institutional strengthening and capacity building; (ii) mitigation measures undertaken to minimize adverse environmental impacts arising from the construction of the Project facilities; (iii) EMP implementation monitoring activities conducted and monitoring results analysis; (iv) public consultation activities; and (v) conclusions and suggestions.

Description of the Project

3. ADB approved a loan of $70.0 million for Ningxia Irrigated Agriculture and Water Conservation Demonstration Project on 14 December 2012. The loan was signed on 7 May 2013 and became effective on 27 June 2013. The project improve the value of horticultural crops by planting high-value and high-quality varieties, constructing water conservation infrastructure, promoting sustainable farming practices, and developing institutional capacity.

4. The project’s impact will be improved sustainability of agricultural production in Ningxia. The outcome will be increased quality and value of horticultural crops in Ningxia. The project have four outputs: (i) improved irrigation systems, (ii) improved agriculture farms, (iii) increased grape processing capacity, and (iv) strengthened institutional and farmer capacity. Originally, the project is being implemented over a five-year period with the physical completion of the project by 30 June 2018 (original completion date at appraisal). ADB approved a scope change in December 2017 as per the government request. With the scope change, the loan closing date is extended from 31 December 2018 to 30 June 2020.

5. Ningxia Hui Autonomous Region Government is the executing agency acting through Ningxia Finance Department (NFD). The project implementing offices (PIOs) include Ningxia Agriculture Reclamation Group Cooperation (NARG) Limited, Tongxin County Government (TCG), Hongsipu District Government, and Yinchuan Municipality Government (YMG). A project management office (PMO) hosted by Yinchuan Finance Bureau coordinates day-to-day administrative matters on behalf of NFD.

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6. The project is classified as Category B for environment by ADB, which is expected to provide environmental benefits including improved irrigation water use efficiency, reduced farmland soil erosion, reduced use of fertilizers and pesticides, reduced sediment runoff to surface water, and adoption of sustainable agricultural techniques. Key environment related documents including: (i) consolidated initial environmental examination (CIEE) which was circulated to ADB in September 2012; (ii) EMP as elaborated in the CIEE; and (iii) project administration manual (PAM). There are engineering solutions and best practice methods that have been specified in the environmental management plan (EMP) to ensure that the potential adverse environmental impacts/risks are avoided where possible and/or minimized. In line with the EMP requirements, environmental specification clauses have been prepared in the civil work contracts.

7. Due diligence of scope changes. In December 2016, the PMO proposed to add three new subprojects (Binggou, Wuhudun, and Ma’anshan subprojects in Yinchuan Municipality) replacing some existing subprojects completed by government funds or without progress yet. For the existing Hongsipu subproject, a total length of 19.7km access road with asphalt pavement is proposed to newly add. For Tongxin subproject, 666.7 ha of Chinese dates orchards are proposed to be replaced by 666.7 ha of yellowhorn orchards, at same location within same scope as the original CIEE dated September 2012. An environmental addendum was prepared on basis of the domestic EIA prepared for the three new subprojects in Yinchuan Municipality in September 2017. Correspondingly, the EMP was updated in according with the environmental addendum. With these changes, Yinchuan Municipality Government (YMG) is included as a PIO while Yanchi County Government is not involved in the project anymore.

PROJECT IMPLEMENTATION PROGRESS

8. The project has made substantial progress since the scope change in December 2017. The overall project progress is about 45% against 70% of time elapsed. Implementation progress of each output is as follows:

(i) Output 1: Improved irrigation system has been installed for 4 vineyard farms and 1 Chinese date orchard with a total area of 1466.2 hectare (ha), or 58.2% of the planned area. This includes 469.5 ha for NARG, 330 ha for Hongsipu and 666.7 ha of Chinese date orchards in Tongxin. The field works of irrigation structures in Binggou modern agriculture demonstration started in late September 2018 and are planned to complete in June 2019. The field works in Ma’anshan, Wuhudun, and Tongxin are planned to start in March 2019 and to complete in general in July 2019.

(ii) Output 2: Improved vineyards and Chinese date orchards. One of NARG’s six planned vineyards was established with a total area of 180 ha, or 14.3% of the target area. Vineyards at two farms were rehabilitated with a total area of 289.5, or 21.6% of the planned area. Establishment of new vineyards in Hongsipu and Chinese date orchards in Tongxin has been completed. Yellowhorn plantation in Tongxin planned to start in September 2019 and to complete in November 2019. Shelterbelts establishment in Wuhudun and Ma’anshan are planned to start in March 2019 and to complete in June 2019.

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(iii) Output 3: Increased Grape Processing Capacity. The component supports NARG’s grape processing and has been completed in 2015.

(iv) Output 4: Strengthened institutional and farmer capacity. Training for grape growers and vineyard managers are conducted regularly, including water saving irrigation fertilizer application, and pesticide management. Monitoring and quality control systems were developed under the previous ADB project and have been applied in vineyard management. Farmers associations and water user associations have been well established and play active role in irrigation management and grape growing. Consultants were fielded in October 2016.

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Table 1- 1 Implementation Progress and Proposed Changes (as of 31 Dec 2018) No. Indicators Unit of Baseline Progress/ Status Next action plan Measurement Value (2011) 1. improved irrigation systems Improved irrigation system has been The field works of irrigation structures Water-efficient drip and hose installed for 4 vineyard farms and 1 in Binggou modern agriculture 1a irrigation installed in all project N Chinese date orchard with a total area demonstration started in late vineyards and orchards of 1466.2 hectare (ha), or 58.2% of September 2018 and are planned to the planned area (2,523ha), including complete in June 2019. 469.5 ha for NARG, 333.3 ha for The field works in Ma’anshan, Total irrigated area increased by Hongsipu, and 666.7 ha of Chinese Wuhudun, and Tongxin are planned 1b ha 0 2,526 ha2 date orchards in Tongxin1 to start in March 2019 and to complete in general in July 2019. Annual water savings of approximately 5.3 million m3 of Annual irrigation water savings of irrigation water currently being applied 1c about 3 million m3 from 18.6 m3 1860 flood irrigation and high water million m3 in 2010 demand crops (for details, please see Chapter 4.2) 2. improved vineyards and Chinese date orchards3 One of NARG’s six planned vineyards Not applicable 180 ha of new vineyards was established with a total area of 2a ha 0 developed under NARG 180 ha, or 14.3% of the originally target area (1,256.7ha)4. Vineyards at two farms were Not applicable 800 ha of existing vineyards rehabilitated with a total area of 2b ha 0 rehabilitated under NARG 289.5ha, or 21.6% of the originally planned area (1,343.3ha) 5.

1 For details, please see the below 2a to 2d. 2 Considering the completed 1466.2ha and newly added three components at mid-term review (For details, please see the below 2e to 2g) 3 NARG decided to cancel uncompleted establishment and rehabilitation of vineyards. NARG’s total plantation area of vineyards is about 9,000 ha and has exceeded its wine making and storing capacity while the sales have not developed proportionally. Moreover, due to the fast growing domestic wineries as well as increasing volume of imported wines, NARG has faced great marketing difficulties and thus will have to limit its making and storing capacity to deal with the changing market. With the support of ADB Loan 2436 Ningxia Integrated Ecosystem and Agriculture Development Project, NARG established 2,400 ha of vineyards fully installed with water- saving irrigation systems. NARG’s total wine making and storing capacity is 45,000 ton per year, of which 10,000 ton was added by the Loan 2436 and 15,000 ton was added by the ongoing ADB project. The current making and storing capacity can support only 6,000 ha of vineyards (the average yield is about 12 ton/ha). 4 (1)Huangyangtan farm (296.7 ha): Canceled. (2)Nuanquan farm (133.3 ha): Canceled. (3)Yuquanying farm (340.0 ha): Canceled. (4)Lianhu Part farm (240.0 ha): Canceled. (5)Qukou farm (180 ha). Completed in 2014. (6)Yuquanying Grape Nursery (66.7 ha). Canceled 5 (1) Huangyangtan farm (543.3 ha): Canceled. (2)Yuquanying farm (666.7 ha): 133 ha completed in 2014. (3)Lianhu Part farm (133.3 ha):156.5 ha completed in 2014.

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No. Indicators Unit of Baseline Progress/ Status Next action plan Measurement Value (2011) the planned 333.3 ha of vineyards Loan savings about $1.9 million will establishment had been completed in be used to upgrade agricultural roads About 333.3 ha of new vineyards 2014 including water-saving irrigation about 19.7 kilometers (km) within the 2c ha 0 developed in Hongsipu district systems. original vineyards established under the project. (newly proposed at mid- term review, and approved in 2017) The planned Chinese dates orchards About 666.7 ha of Chinese dates 2d ha 0 (666.7 ha) had been completed using planted in Tongxin government funds in 2013 (newly proposed at mid-term review, The field works in Tongxin are and approved in 2017) planned to start in March 2019 and to About 481 ha of yellow-horn complete in general in July 2019. 2e ha 0 planted in Tongxin County Yellowhorn plantation in Tongxin planned to start in September 2019 and to complete in November 2019. (newly proposed at mid-term review, The field works of Binggou modern About 468 ha of a water saving and approved in 2017) agriculture demonstration started in 2f6 and conservation demonstration ha 0 late September 2018 and are planned farm developed at Bingou to complete in June 2019.

(newly proposed at mid-term review, The field works in Ma’anshan are About 111 ha of a comprehensive and approved in 2017) planned to start in March 2019 and to 2g modern agriculture farm ha 0 complete in general in July 2019. development at Ma’anshan (newly proposed at mid-term review, Binggou: 165ha and approved in 2017) Wuhudun: 40ha Ma’anshan: 33ha About 257 ha of shelterbelts Tongxin: 19ha 2h ha 0 established Shelterbelts establishment is planned to start in March 2019 and to complete in June 2019.

6 The figures of 2e to 2h are sourced from the November 2018 monthly report from the IAs.

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No. Indicators Unit of Baseline Progress/ Status Next action plan Measurement Value (2011)

About 40% of jobs created under 2i Percent 0% the project filled by women

3. increased grape processing capacity The component supports NARG’s grape processing and has been About 15,000 tons of grape 3a tons 0 completed in 2015, including 5,000 processing capacity constructed ton in NARG’s Nuanquan Farm was funded using government funds. 4. strengthened institutional and farmer capacity About 5,000 farmers trained in Training for grape growers and water and soil conservation, vineyard managers are conducted sustainable horticultural regularly, including water saving 4a number 0 management, and plant disease irrigation fertilizer application, and prevention and pesticide pesticide management. Monitoring management and quality control systems were About 40 staff from the PMO and developed under the previous ADB PIOs trained in project project and have been applied in 4b management, procurement, number 0 vineyard management. Farmers financial management, and associations and water user disbursement associations have been well established and play active role in About 300 staff from cooperatives irrigation management and grape and the WUAs trained in 4c number 0 growing. sustainable horticultural management Consultants were fielded in October A marketing and business 2016 and October 2018 respectively. Not applicable in this environmental 4d strategy for the NARG developed Y / N N safeguard monitoring report and implemented About 23 staff (including from the Wine sales outside Ningxia by PMO and PIOs, of which with 12 Not applicable in this environmental 4e NARG increased from 20% in Percent 20% female staff) trained in project safeguard monitoring report 2010 to 30% contract management, procurement, environmental safeguard on 29

At least 40% of trainees on October 2018. 4f horticultural management are Percent 0% women

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2 Institutional Setup and Responsibilities for EMP Implementation and Supervision, Institutional Strengthening and Training 9. In order to protect the regional environment of each project area and ensure the effective control and remission for all kinds of bad effect during project construction, the PMO/PIOs implemented strict and scientific tracking, and normative environmental management and environmental monitoring in the whole process of the project.

2.1 Responsibilities and Authorities for Implementation

10. The Ningxia Finance Department is the executing agency (EA). A leading group (LG) has been established to help guide the project. The LG is directed by the Vice-chairman of the Ningxia Hui Autonomous Region Government, and includes members from the Ningxia Development and Reform Commission, the Ningxia Water Resources Department, the Ningxia Finance Department, the Ningxia Economic Committee, the Ningxia Forest Bureau, the Ningxia Agriculture and Livestock Department, the Ningxia Environmental Protection Department, the Ningxia Science and Technology Department, the Ningxia Transportation Department, the Ningxia Education Department, the Ningxia Civil Affairs Department, the Ningxia Construction Department, the Ningxia Agriculture Reclamation Group Company, Ltd (NARG), and the Ningxia Poverty Relief Office.

11. The PMO is co-located in the Ningxia Finance Department. Delegated by the EA, and the PMO has overall responsibility for supervising the implementation of mitigation measures and reporting to ADB. The PMO is also responsible for replying to petitions and/or complaints from affected persons, if such petitions and/or complains are appealed to the PMO.

12. The PMO and PIOs have setup basic institutional capacity and staff resources to oversee the EMP implementation, including a Grievance Redress Mechanism (GRM) system. To meet the government requirements for simplified administration, the functions of project management were transferred from NFD to YMG in May 2017. The new PMO was established under Yinchuan Finance Bureau following the government’s approval in April 2018. From then on, the PMO on behalf of the executing agency takes responsibilities of daily administration. Mr. Qiao Jingxing (+86 -159 0960 3020) was designated as the PMO’s new environmental officer to supervise overall project EMP implementation. An individual environmental consultant was also mobilized in September 2018 to assist PMO to strengthen environmental management in line with ADB requirements, and in November 2018 provided a thematic training on ADB SPS (2009) to PMO and the PIOs with a detailed data list for environmental reporting and a template for internal monitoring.

13. Implementing agencies (IA) include the Yinchuan Municipality Forestry Department, the Tongxin County Finance Department, the Hongsipu District Finance Department, and NARG. The IAs have each established project

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implementing offices (PIOs) to coordinate the preparation and implementation of the sub-Projects.

14. The IAs are largely responsible for environmental management and implementation of mitigation measures. The IAs ensure that the EMP is carried out. The IAs also engage design institutes, EIA institutes, and IEMs to help with environmental management at the preparation, design, construction, and operation phases. The IAs are responsible for arranging environmental monitoring reviews and responding to any adverse impacts beyond those foreseen in the EIAs. The IAs also address requests for mitigation measures from county and district EPBs and ADB. If affected persons appeal petitions and/or complaints to an IA, the IA will reply within 30 days, based on consultations with the IEM and other relevant institutes and/or agencies as necessary.

15. Construction contractors are responsible for implementing mitigation measures during construction, while the IAs will be responsible for implementing such measures during the operation.

16. In accordance with the EMP, each IA sets up an environmental management unit (EMU) that generally requires two employees. The EMU is responsible for: (i) implementing the EMP and developing further implementation details; (ii) supervising contractors‘ implementation of mitigation measures during construction; (iii) implementing training programs for contractors; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal routine environmental monitoring; (vi) reporting performance of the EMP to the PMO and responsible agencies; and (vii) assisting the IA in replying to petitions and/or complaints appealed from affected persons, if such petitions and/or complaints are appealed to the IA. The EMU is supported and supervised respectively by the IA, EMC, IEM, and county or district EPB.

17. The PMO, IAs, and contractors each nominate dedicated, trained, and qualified environment specialists to undertake environmental management activities and ensure effective EMP implementation. Project management consultants engaged by the PMO including EMC assist the EA/PMO and IAs in preparing quarterly project progress reports and carrying out training programs.

18. County and district EPBs, delegated by NEPD, conduct regular and random environmental compliance monitoring and inspection during construction and operation. The EMS at the municipal level conducts environmental monitoring and inspection. On the basis of the environmental monitoring and inspection, the EPB will impose fines and order corrective actions, if necessary.

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Ningxia Leading Group

Ningxia Project Management Office

Environmental Protection Staff（Ningxia Project Management Office）

Design Department City (county) Project Local governmental Management Office organizations contain all levels environmental protection agencies, and agricultural competent departments

Construction Phase Environmental Management Organization Setup Diagram

Ningxia Leading Group

Ningxia Project

City (county) Project Management Office

Operation Period Environmental Management Organization Setup Diagram

Table 2-1: Environmental Responsibility Matrix and Implementation Status(as of 31 Page | 9 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Dec 2018)

Agency Phase Responsibility Implementation status during this reporting period Design Institutes Preparation Review and select alternatives Complied with (technological, design, location, etc.) Design Update the EMPs in cooperation with EIA Complied with institutes, and incorporate mitigation measures in engineering detail designs and contracts EIA institutes Preparation Prepare EIAs and EMPs for subprojects, Complied with including public consultations NEPB Preparation Review and approve EIAs, including the Complied with EMPs Test Review and approve project completion Not yet due Operation environmental audit report, and order corrective actions if necessary PPTA consultant Preparation Prepare IEE including EMP, including Complied with public consultations PMO Preparation Coordinate and supervise EIAs, IEE and Complied with public consultations Design Review and approve environmental Complied with measures Tendering Incorporate EMP clauses in bidding Being complied with and documents and contracts Contracting Construction Advise and supervise implementation of mitigation measures GRM Deal with petitions and/or complains, if Being complied with such petitions and/or complains are appealed to the PMO IAs Preparation Review and endorse IEE, including the Complied with EMP, for posting at ADB website Design Review and approve environmental Complied with measures Tendering Incorporate EMP clauses in bidding Being complied with and documents and contracts Contracting Construction Ensure implementation of mitigation measures, and public consultations; With EMC, conduct internal environmental monitoring and inspection, supervise implementation of the EMP, and conduct public consultations Test Conduct project completion environmental Not yet due Operation audit, including sampling and lab tests, and prepare project completion environmental audit report Operation Ensure proper operation of subproject Not yet due facilities according to design standards, and implementation of mitigation measures and public consultations GRM If petitions and/or complains are submitted Being complied with to IAs from affected persons, reply to the affected persons within 30 days Procurement agency Tendering Incorporate EMP clauses in bidding Being complied with and documents and contracts Contracting Contractors Construction Implement mitigation measures Being complied with GRM Tries to resolve a concern arose by affected persons during construction directly with the affected persons Page | 10 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Agency Phase Responsibility Implementation status during this reporting period County / District EPBs Construction Advise and supervise implementation of Being complied with mitigation measures EMC (contracted by Construction Conduct internal monitoring and inspection, Being complied with PMO) and public consultations IEMs Construction Conduct independent monitoring (including Being complied with public consultations), and prepare periodic monitoring reports to IAs EMSs (on behalf of Construction Conduct monitoring Being complied with county / district EPBs) Operation Conduct regular and unannounced Not yet due environmental monitoring and inspection EMC Test Assist IAs in conducting environmental Not yet due Operation audit and preparing progress reports to the PMO Operation Conduct internal environmental monitoring Not yet due and inspection, supervise implementation of the EMP, and conduct public consultations IEMs Test Assist IAs in conducting environmental Not yet due Operation audit and preparing progress reports to the PMO Operation Conduct independent monitoring (including Not yet due public consultations), and prepare periodic monitoring reports to IAs Project managers GRM Tries to resolve a concern arose by Being complied with affected persons during construction directly with the affected persons Township GRM If petitions and/or complains are submitted Being complied with governments, to township governments and/or subdistrict subdistrict offices offices from affected persons, reply to the affected persons within 2 weeks Village committees GRM If petitions and/or complains are submitted Being complied with to village committees from affected persons, reply to the affected persons within 2 weeks. EIA = environmental impact assessment, EMC = environmental management consultant, EMP = environmental management plan, EPB = environmental protection bureaus, GRM = grievance redress mechanism, IA = implementing agency, IEE = initial environmental examination, IEM = independent environmental monitor, EMS = environmental monitoring station at city or county level, IA = project implementing agency, PMO = provincial project management office, PPTA = project preparatory technical assistance. Source(s): Domestic EIAs, consultations with PMO, NEPD, county and district EPBs, and IAs.

Page | 11 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) Table 2-2. Contact Information of EHS staff/GRM focal points at Various Agencies Involved in the Project (as of 31 Dec 2018)

Institution Name of Company Position Name of Contact Information EHS staff (phone number/email) PMO Ningxia PMO Director Mr. Zhang +86 13895088195 (set up under Yinchuan Zhi Finance Bureau) Executive deputy Ms. Xie +86 18909565769 director Rong Both EHS officer or Mr. Qiao +86 15909603020 GRM focal point Jingxing [email protected] ADB PRCM Project officer Mr. Niu [email protected] Zhiming PRCM Environmental Mr. Li Ning [email protected] officer PIOs Yinchuan municipal Director Mr. Wu +86 18295210111 landscaping maintenance Liwei station Both EHS officer or Mr. Ma +86 15378916652 GRM focal point Chunlong [email protected] Hongsipu forestry bureau Director Wang +86 18152339081 Qingshan Both EHS officer or Yang +86 18195362020 GRM focal point Xiaodong [email protected] Tongxin financial bureau Director Mr. Ma - Congbo Both EHS officer or Mr. Yang +86 13995352986 GRM focal point Ning [email protected] NARG project management Director Gou Jinping office Both EHS officer or Yao Jun +86 0951-3971992 GRM focal point Yuquanying farm Tian Feng +86 0951-8450225 Qukou farm Wang +86 0955-5691245 Shaojun Lianhu farm An +86 0953-3049030 Hongwei Tendering China Fareast International - Mr. Yang +86 13995099098 agent Tendering Company Xiaofeng LIEC - Loan Mr. Nie +86 18086056438 implementation Mingtao environmental consultant (LIEC) Constructi YC-WN- Contract manager Mr. Yang +86 19995494825 on 2018001 Yinhe supervisio Binggou water Both EHS officer or Mr. Zhao +86 13895677205 Ning Xia n saving and GRM focal point Fangyu Xinyuan Company( ecological Construct s) (CSCs) agricultural ion for sample demonstration Engineeri contracts zone bid 1: ng Co., in Pumping Ltd. Yinchuan station and reservoir engineering YC-WN- Contract manager Mr. Yang +86 19995494825 Ning Xia 2018002 Yinhe Xinyuan Pump station Both EHS officer or Mr. Zhao +86 13895677205 Construct and reservoir GRM focal point Fangyu ion engineering Engineeri (semi- ng Co., underground) Ltd. (bid 2) YC-WN- Ning Xia Contract manager Mr. Yang +86 19995494825

Page | 12 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Institution Name of Company Position Name of Contact Information EHS staff (phone number/email) 2018004 Xinyuan Yinhe Main water Construct Both EHS officer or Mr. Zhao +86 13993868207 transmission ion GRM focal point Junhong pipelines - bid 1 Engineeri ng Co., Ltd. Ning Xia Contract manager Mr. Yang +86 19995494825 YC-WN- Xinyuan Yinhe 2018005 Construct Both EHS officer or Mr. Zhao +86 13993868207 Main water ion GRM focal point Junhong transmission Engineeri pipelines - bid 2 ng Co., Ltd. Ning Xia Both EHS officer or Mr. Li +86 18595013015 YC-WN- Xinyuan GRM focal point Dongsheng [email protected] 2018014 Construct Land fertilizing ion and Engineeri consolidation ng Co., Ltd. Ning Xia Contract manager Mr. Yang +86 19995494825 YC-WN- Xinyuan Yinhe 2018019 Construct Both EHS officer or Mr. Zhao +86 13993868207 Operation road ion GRM focal point Junhong and loop road Engineeri (bid 1) ng Co., Ltd. Contractor YC-WN- Shaanxi Contract manager Mr. Zhou +86 18995183207 s for 2018001 Province Kai sample Binggou water Xianyang Both EHS officer or Mr. Kang +86 15809575662 contracts saving and City GRM focal point Ligang in ecological Construct Yinchuan agricultural ion and demonstration Installatio zone bid 1: n Pumping Engineeri station and ng reservoir Corporati engineering on Zhongho Contract manager Mr. Tang +86 18995183207 YC-WN- ng Ling 2018002 Internatio Both EHS officer or Mr. Xu Haifu +86 15825322228 Pump station nal GRM focal point and reservoir Construct engineering ion (semi- Engineeri underground) ng Group (bid 2) Co., Ltd. Ningxia Contract manager Mr. Ma +86 18295108818 YC-WN- Shitong Chengwu 2018004 Construct Both EHS officer or Mr. Li +86 13259511618 Main water ion GRM focal point Pengjun transmission Group pipelines - bid 1 Co., Ltd. Ningxia Contract manager Mr. Ma +86 18295108818 YC-WN- Shitong Chengwu 2018005 Construct Both EHS officer or Mr. Li +86 13259511618 Main water ion GRM focal point Pengjun transmission Group pipelines - bid 2 Co., Ltd. YC-WN- Ningxia Contract manager Mr. Zhou +86 13709509212 2018014 Sengong Ziwei Page | 13 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Institution Name of Company Position Name of Contact Information EHS staff (phone number/email) Land fertilizing Landscap Both EHS officer or Mr. Hu +86 18395035777 and ing GRM focal point Zijian [email protected] consolidation Engineeri om YC-WN- ng Co., 2018019 Ltd. Operation road and loop road (bid 1) Yinchuan Contract manager Mr. Ma Lijun +86 13519593215 YC-WN- First Both EHS officer or Mr. Tian +86 13519574519 2018019 Municipal GRM focal point Bao Operation road Engineeri and loop road ng Co., (bid 1) Ltd.

2.2 Institutional Strengthening and Training

19. An assessment undertaken during the project preparatory technical assistance indicates that the PMO has adequate technical and institutional capacities for project implementation. However, the IAs have weak capacity in environmental management and monitoring. For proper implementation of the EMP, it is necessary to strengthen the capacity of the IAs.

20. It is considered that the two-tier implementation arrangement— PMO and IAs provide a reasonable framework for project management and control. The definition of roles, responsibilities and relationships between the PMO, IAs, and other relevant agencies (e.g., NEPD, county and district EPBs) is adequate to ensure the effective implementation of the project.

21. Environmental specialists in the PMO, IAs, and contractors receive training in environmental management, environmental monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental management techniques. Funding of this training is included in the project budget and in the operation and maintenance budget in the operation phase.

22. The Farmer Field Schools (FFS) is a key component of the training, and increases capacity in fertilizer and pesticide application approaches and techniques. The following provides a summary of the FFS as described in more detail in ADB, 2012, Ningxia Irrigated Agriculture and Water Conservation Demonstration Project PPTA, Final Report, Appendix C. The cost estimates for FFS have been provided for in Appendix C and have not been included as part of the EMP cost estimate.

23. The IAs have proposed to apply the FFS training method. Assuming 4,669 farmers are planned to be trained, and one field school class has a maximum of 15 farmers per session, and at least one session (class) lasts one day, for at least 6 sessions per year, then there planned to be almost 1,488 FFS sessions in total per year; or 7,442 sessions of one day during the 5-year project implementation of the grape cultivation program. This would be the absolute minimum. It may well be higher given the fact that many farmers are new to grape cultivation. Very new Page | 14 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) technologies and techniques need to be introduced, while already during spring the classes may need to start to plan for the season.

24. The FFS sessions require at least 62 trainers for grape FFS. These trainers should be well trained technicians who also be busy to prepare for the field school days, and visit farmers during the remainder of the month to collect data and advice farmers on the spot with problems they encounter (extension service).

25. The principle for the FFS is that farmers get an allowance for that day to cover his day lost for work and costs of transport, while there are expenses for snacks, lunch, material, transport of trainer. A unit cost CNY 125 per class-day per farmer (or CNY 1,875 per class of 15 farmers) has been assumed in the calculations. However, since an average cost per farmer- session-day is used, the size of the class has no effect on the costs of the FFS subproject.

26. Preliminary cost estimates indicate that about $1.85 million is needed for the FFS program for grape growing farmers during the 5 year period.

27. The FFS include the following: (i) Training and certification of Pesticide Application Operators. Training and certification follows FAO Guidelines (2003) on ‗organization and operation of training schemes and certification procedures for operators of pesticide equipment‘ (see http://www.fao.org/docrep/006/Y2686C/Y2686C00.htm for Chinese-language version). Training should also be provided on procedures for annual testing and calibration of pesticide equipment as per FAO Guidelines (2001) on standards for agricultural pesticide application equipment and related test procedures.

(ii) Training on the appropriate application of fertilizers, including the use of soluble forms of nitrogen, potassium and phosphate through drip irrigation systems. The training program should develop and trial these and other technologies with the aim of reducing the amount of fertilizer application per unit area within the project area. The volume of fertilizer used per unit area should be reported as part of the EMP monitoring requirements, allowing the reduction of fertilizer to be quantified.

(iii) The training also include (i) use of organic fertilizers, compounds and compost as base fertilizers to reduce nutrient loss, building on the lessons learned from the IEM Project, (ii) application of compound fertilizers including nitrogen, phosphate and potassium according to soil nutrient tests based on the requirements of tree growth, and (iii) capacity building to farmer in appropriate guidelines for inorganic fertilizers application.

Table 2-3: Institutional Strengthening and Training Program and Implementation Status(as of 31 Dec 2018)

Activities Target Agencies/ Contents Timing Implementation Attendees status during this reporting period Strengthening Institutional PMO, IAs, NEPD, Defining institutional During Complied with Strengthening county and district arrangements for project EPBs environmental management, preparation monitoring, and supervision

Defining positions and Page | 15 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Activities Target Agencies/ Contents Timing Implementation Attendees status during this reporting period responsibilities

Appointing and recruiting personnel

EMC Recruiting and contracting Prior to Complied with EMC for internal project environmental management implementati consultancy and monitoring on

IEMs Recruiting and contracting Prior to Complied with IEMs to conduct project independent environmental implementati monitoring for subprojects on

Environmental IAs, procurement Developing environmental During Being complied Management agency, EMC management clauses and project with Clauses and incorporating them into preparation Protocols construction and operational contracts

Developing/refining Being complied environmental monitoring with protocols

Developing environmental Being complied emergency response with procedures

Training Environmental PMO, IAs, Environmental laws and Prior to Being complied Laws, contractors regulations project with Regulations implementati Being complied and Policies Environmental policies and on with plans

Basic environmental Being complied management with

Environmental emergency To be complied response with

EMP PMO, IAs, Responsibility and duties for Prior to and Being complied Implementatio contractors project construction, during with n management and project environmental protection implementati on Tasks of environmental Being complied protection in the project with construction

Key environmental Being complied protection contents in with project construction

EMP improvement and Being complied corrective actions with

Page | 16 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Activities Target Agencies/ Contents Timing Implementation Attendees status during this reporting period

Environmental IAs, contractors Monitoring and inspection Prior to and Being complied Monitoring, methods, data collection and during with Inspection and processing, interpretation of project Reporting data, reporting system implementati on Environmental reporting Being complied requirements with

Field Farmer IAs, contractors Training and certification of Prior to and To be complied Schools Pesticide Application during with Operators. project implementati Training on the appropriate on Being complied application of fertilizers and with pesticides EMC = environmental management consultant, EMP = environmental management plan, EPB = environmental protection bureau, IA = implementing agency, IEM = independent environmental monitor, PMO = project management office, NEPD = Ningxia Environmental Protection Department. Source(s): Domestic EIAs, and consultations with PMO, NEPD, county and district EPBs, and IAs.

28. Established the project implementation office which is relying on Ningxia Hui Autonomous Finance Department Project Management Office to ensure that the project participants understand their responsibility fully of executing project environment related activities, also get a better understanding of the reason of carrying out environmental monitoring plan. Training is mainly divided to three levels: Firstly is the project officer; secondly is the technical personnel; thirdly is farmers.

29. Training of Project officer mainly aimed at the project management office of provincial level (regional), municipal (county) who take charge of executing the environment monitoring program, the main training content including local laws and regulations, resources protection and ecological environment protection, etc.

30. Training of technical personnel focuses on the professional side of water conservancy, forestry, agriculture, juice processing factory, main training about water conservation, forestry and agriculture technology, organic agriculture and product marketing and other aspects.

31. Training of farmers is aimed at all participated farmers in the project area, mainly about water saving technology, grape, Chinese date and other crop cultivation techniques.

Page | 17 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

EHS training in Oct 2018, organized by the PMO

Page | 18 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Binggou workshop in Oct 2018

Page | 19 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Ma’anshan workshop in Oct 2018

Tongxin field meeting in Oct 2018

Hongsipu field meeting in Oct 2018 Page | 20 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

3 Environmental Mitigations and Compensation Measures Implemented in the Reporting Period

3.1 Environmental Clauses in Civil Works Contracts

32. All civil works contracts contain provisions on workers’ and community safety, environmental protection and protection of physical and cultural relics. The environmental clauses are summarized below.

Figure Environment, health and safety clauses in the signed contracts and construction method statements (contract package: TX-W-N-2018002 reservoir)

3.2 Environmental Mitigations and Compensation Measures Implemented in the reporting period

33. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified by the domestic environmental impact assessment (EIA), as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table 3-1. The mitigation measures were incorporated into the tendering documents (where appropriate), construction contracts and operational management plans, and were undertaken by contractors, the implementing agencies (IAs) under the supervision of the project management office (PMO) and project implementing offices (PIOs) and the Ningxia Environmental Page | 21 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Protection Department (NEPD) when necessary. The effectiveness of these measures was evaluated based on the results of the environmental monitoring to determine whether they should be continued or improvements should be made. Improvements need to be confirmed through stipulated environmental management procedures.

34. National standards for air, water, and noise quality, emissions, and clearance of vegetation, are used as the benchmarks for project monitoring during construction and operation, and are listed in Chapter 4.4. .

Page | 22 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Table 3-1: Summary of Potential Impacts and Mitigation Measures and Implementation Status (as of 31 Dec 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage A. Pre-Construction (applicable to all components) 1. EIA and Site selections The recommended sites/ routes for the Design Institutes, County and District Complied with Feasibility individual subprojects were selected from EIA institutes, IAs EPBs, NWRD, IAs, Study various alternatives so as to minimize NEPD Stage adverse impacts on the environment and land resources.

Engineering and Engineering and technological alternatives Design Institutes, County and District Complied with technological were evaluated based on pre-defined EIA institutes, IAs EPBs, NWRD, IAs, alternatives environmental and economic criteria. NEPD

Water extraction Obtain a water use permit for water input IAs Local WRBs, PMO, Complied with permission from local Water Resources Bureaus – LIEC providing all details required for that application to the WRBs

Public consultations Several rounds of public consultations EIA institutes, PMO, county and Complied with have been conducted on environmental PPTA consultants, district EPBs, ADB issues, poverty, and resettlement during IAs feasibility studies, and EIA and IEE preparations.

2. Design Updating EMP Mitigation measures defined in the EMP EIA institutes, PMO, county and Complied with Stage be reviewed, updated and incorporated Design Institutes, district EPBs into the detailed design to minimize PPTA consultants, adverse environmental impacts. IAs

3. Due Noncompliance with Undertake due diligence reviews of EIA IAs, IEMs, EMC PMO, county and Not applicable Diligence EMP and EIA documents and field inspections of district EPBs requirements during ongoing works. construction works

Page | 23 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage 4. Bidding Bidding documents Environmental section and provisions be IAs, procurement PMO, ADB Being complied with and and included in the bidding documents. agency Constructi contractors‘ qualificat on ions Environmental clauses for contractors in Preparatio reference to this EMP and monitoring plan n be included in the construction and supply contracts.

The domestic EIA report, IEE report, and Being complied with this EMP be included in the contract documents

Environmental Contractors be required to prepare an Contractors IAs, PMO, county and Complied with operation and environmental operation and supervision district EPBs supervision manual manual, for approval by the IAs.

Complaints Establish a complaint and information Contractors IAs, PMO, county and Complied with office or appoint a responsible person and district EPBs the grievance redress mechanism before starting construction.

Ensure that staff at the office is well Complied with trained to handle conflicts with residents from environmental impacts.

Environmental Environmental specialists and/or officials NEPD, PMO, PMO Being complied with protection training from NEPD be invited to provide training EMC on implementation and supervision of environmental mitigation measures to relevant persons, especially construction engineers and managers.

Page | 24 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage Engagement of EMC Prior to start of construction, a national PMO, a national PMO, ADB Complied with environmental management consultant be procurement engaged. specialist

Engagement of IEMs Prior to start of construction, IEMs be IAs PMO, county and Complied with engaged. district EPBs

B. Construction Phase (applicable to all components under construction and having been constructed) 1. Soil Excavation Use improved soil preparation methods Contractors IAs, OEEs, IEMs, Being complied with Erosion including pit, strip, and anti-slope based on PMO site condition.

Restricted works during dry season (September– June).

Preserve topsoil by excavating in strips and stockpiling. Confine stockpiled material with retaining bunds or walls to avoid loss.

Construct erosion barriers and temporary detention ponds or containment to control silt runoff as required.

Construct intercepting ditches to prevent outside runoff entering excavation stockpile sites, and divert runoff from sites to existing drainage or ponds.

Soil exposed for construction or field preparation be stabilized as soon as possible, especially sites close to human

Page | 25 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Transport and All soils be used as refill and landscaping Contractors IAs, OEEs, IEMs, Being complied with disposal of soils materials on site. PMO

Settling ponds be built in construction sites. Soils in settling ponds be cleared for use as refill materials.

Construction vehicles Straw or cloth be laid at the entry/exist of Contractors IAs, OEEs, IEMs, Being complied with each construction site to reduce soil loss PMO from adherence to vehicles.

Tires of construction vehicles be cleaned daily of soils

Exposed surfaces Within 1 week of refill and land leveling Contractors IAs, OEEs, IEMs, Being complied with completion, re-vegetation with native trees PMO and grasses be undertaken.

2. Water Siltation in water If soil erosion mitigation measures are Contractors IAs, OEEs, IEM, PMO Being complied with Quality bodies due to effectively implemented, siltation in water excavation bodies be minimal. Primarily relates to water

Page | 26 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage quality in Wastewater from Portable sanitary systems be used on Contractors IAs, OEEs, IEMs, Being complied with irrigation construction camps site. Wastewater be collected, transported PMO, county and canals and off site and disposed of to domestic district EPBs reservoirs sewerage system.

Unauthorized discharge of wastewater into nearby water bodies be prohibited.

3. Air Dust from crop and Vehicles delivering crops, equipment, and Contractors IAs, OEEs, IEMs, Being complied with Quality material delivery and other material to the sites must be PMO, county and construction vehicles covered. district EPBs

Dust from Materials storage sites must be 300 m Contractors IAs, OEEs, IEMs, Being complied with construction sites from residential areas and covered or PMO, county and sprayed with water. district EPBs

For Hongsipu subproject access road (19.7km), commercial asphalt procured negating the need for asphalt mixing on construction sites. No asphalt production or mixing be conducted onsite. The use of closed mixing asphalt road laying equipment is ideal.

Construction works must be stopped during strong wind (>40 km/hr)

Water be sprayed on active construction roads and excavation sites twice a day.

Upon completion of civil works, all construction sites be required to be re- vegetated with trees and grasses.

Page | 27 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage Dust from Roads used by contractors or suppliers Contractors IAs, OEEs, IEMs, Being complied with construction roads vehicles be kept clear of dust and mud. PMO, county and This be monitored daily and cleaned as district EPBs required.

Emissions from Vehicle emissions comply with GB18352- Contractors IAs, OEEs, IEMs, Being complied with vehicles and 2005, GB17691-2005, GB 11340-2005, PMO, city and county equipment GB3847-2005, and GB18285-2005. EPBs

Equipment and machinery emissions must comply with GB16297-1996.

A regular inspection and certification system be initiated. 4. Noise Noise from Noise from equipment and machinery Contractors IAs, OEEs, IEMs, Being complied with equipment and comply with GB12523-2011. PMO, county and vehicles district EPBs Provide adequate route for large trucks to keep away from residential areas.

At construction sites within 500 m of the nearest habitation, noisy construction work be stopped between 22:00 and 06:00 hours, or as agreed based on community consultation.

Community Interviews with residents living adjacent to Contractors IAs, OEEs, IEMs, Being complied with complaints about construction sites be conducted on a PMO, county and noise weekly basis to identify community district EPBs complaints about noise, and seek suggestions from community members to reduce noise annoyance.

Community suggestions be used to adjust work hours of noise-generating machinery.

Page | 28 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage

Given that many project sites are remote and with no settlements, noise monitoring is not considered necessary, as long as the above mitigation measures are properly implemented.

5. Solid Domestic waste from promote best practice waste management Contractors IAs, OEEs, IEMs, Being complied with Wastes construction camps focusing on minimisation, reuse, and PMO, county and recycling district EPBs

Minimisation of solid waste generation through appropriate materials procurement, minimising generation of cut vegetation

Reuse cleared vegetation for ground cover, reuse of existing trellises and wire for new grape crops, composing organic waste where appropriate, and use multi- compartment collection bins to promote recycling of construction materials.

6. Impact Vegetation Prohibit burning vegetation and residual Contractors IAs, OEEs, IEMs, Being complied with on Flora bushes and grasses when clearing PMO, county and planting sites, in compliance with PRC district EPBs Water and Soil Conservation Law (2011) and PRC Forest Fire Prevention and Control Regulation (2008)

Only cut grasses or bushes which are obstacle to planting activities and tree growth in patches or strip shape and pilling them up between planting rows or holes to allow them to naturally decay.

When clearing planting sites in patches or strips on land with slopes of more than 15

Page | 29 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Preserve existing vegetation where no construction activity is planned or temporarily to preserve vegetation where activity is planned for a later date.

Rehabilitate disposal and borrow sites with equivalent or improved native vegetation cover.

7. Social Traffic jam or block Build interim roads. Contractors, IAs OEEs, IEMs, PMO, Being complied with and city and county traffic Cultural Select transport routes to reduce bureaus Considerat disturbance to regular traffic. ions Divert traffic at peak traffic hours, and reinstating the area to its original condition on completion of construction.

Community health Erect construction signages/billboards, Contractors, IAs OEEs, IEMs, PMO, Being complied with and safety which include construction contents, city and county traffic schedule, responsible person and bureaus complaint phone number, at the entry to each construction site and construction staging area.

Inform residents and businesses in advance of the road improvement activities, given the dates and duration of expected disruption and make aware of the project GRM.

Place clear signs at construction sites in view of the public, warning people of potential dangers such as moving

Page | 30 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Make all sites secure, and discourage access by members of the public through appropriate fencing/barriers, signage and/or security personnel, as appropriate. Cultural heritage Cultural heritage sites be preserved Contractors, IAs OEEs, IEMs, PMO, Being complied with where identified, especially for Great Wall Regional Cultural of the Ming Dynasty (Wuhudun section). In Heritage Department, accordance with the PRC regulations, no city and county person shall destroy, damage, deface, cultural heritage conceal, or otherwise interfere with a relic. bureaus

Wuhudun subproject construction neither pass through nor involve the protection scope of the Great Wall of the Ming Dynasty. To better protect the Great Wall of the Ming Dynasty, it requires the relevant laws and regulations such as the PRC Cultural Relics Protection Law 2002, PRC Regulations on the protection of the Great Wall 2006 and Notice of Promulgating protection scope of the early Great Wall in Ningxia Ningxia Hui Autonomous Region, September 2016 etc., should be strictly complied. The Wuhudun subproject construction should avoid and bypass the Great Wall and the following activities shall be prohibited in the Great Wall of the Ming Dynasty: ① earth and bricks taking, tree and crop planting; ② graving and defacing; ③ erecting and installment of unrelated facilities to protect the Great Wall; ④ crossing the Great Wall of the Ming

Page | 31 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage Dynasty by vehicles; ⑤ displaying appliances that might damage the Great Wall of the Ming Dynasty; ⑥ activity implementation in untapped area; ⑦ other activities prohibited by the laws and regulations.

If an important site is unearthed, work be stopped immediately and the matter promptly referred to the County, municipal, provincial- or state-level agencies for evaluation and decision on appropriate actions.

Occupational health Contractors implement adequate Contractors IAs, OEEs, IEMs, Being complied with and safety (OHS) precautions to protect the health and PMO, county and safety of construction workers. OHS risks district EPBs be managed by applying measures in the following order of preference: avoiding, controlling, minimizing hazards, and providing adequate protective equipment. The contractors undertake the following activities:

Personal protection. Provide personal protection equipment, such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations for workers. - For Hongsipu subproject access road (19.7km) ,safety goggles and respiratory masks to workers doing asphalt road paving;

Emergency preparedness and response. An emergency response plan to take actions on accidents and emergencies be

Page | 32 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage prepared, including environmental and public health emergencies associated with hazardous material spills and similar events, and submitted to the local EPBs for review and appraisal. Emergency phone link with hospitals in each County be established. A fully equipped first-aid base in each construction camp be organized.

Communication. Ensure that OHS matters are given a high degree of publicity to all persons regularly or occasionally on each construction site. Posters be displayed prominently in relevant areas of the site.

Training, awareness and competence. Train all construction workers in basic sanitation, general health and safety matters, and on the specific hazards of their work. Implement SITs/HIV/AIDS and other Being complied with communicable diseases awareness and prevention program to target the local community and construction workers.

C. Operation Phase (applicable to completed components: three vineyard farms of NARG, the vineyard farm of Hongsipu vineyard, Chinese dates orchard of Tongxin) 1. Water Wastewater from Separate and reuse the seeds and grape Contractors IAs, OEEs, IEMs, Being Quality grape processing skins prior to discharging wastewater PMO, county and complied equipment cleaning district EPBs with Primarily Treat wastewater in aerobic ponds prior to relates to release, including use of physical aerators. water Nutrient runoff Training be provided to farmers on proper IAs IAs, County or district Being quality in fertilizer selection, application and EPB complied irrigation procedure. with

Page | 33 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage canals and reservoirs Fertilizer be applied in soluble forms of nitrogen, potassium and phosphate, through drip irrigation systems.

Use organic fertilizers, compounds and compost as base fertilizers to reduce nutrient loss

Apply compound fertilizers including nitrogen, phosphate and potassium according to soil nutrient tests based on the requirements of tree growth

Provide capacity building to farmer in appropriate guidelines for inorganic fertilizers application.

Apply fertilizers according to soil nutrition and demand of tree growth.

Apply compounds, including nitrogen, phosphate and potassium in the proper ratio

Ditch or hole application methods be used and covered with earth to increase fertilizer effects and lower pollution

2. Water Water savings At least 90% of new or existing vineyard IAs IAs, NWRD Being Balance and Chinese Date and yellow horn orchard complied land area in the Project install water- with efficient irrigation systems such as drip or pipe irrigation with water meters to closely and accurately monitor water consumption. by 2018.

The subproject install water meters to

Page | 34 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage measure all water entering all the subprojects’ production processes at all sites from all sources (pipelines, wells and local reservoirs) and report water consumption quarterly. The project monitoring annual report include documentation of progress of crop and irrigation conversation, and corresponding water use efficiency improvements. 3. Land Irrigated farmland Use of drip irrigation systems is likely to IAs IAs, County or district Being Degradatio mitigate against risk of land degradation EPB complied n due to over irrigation, reducing soil with erosion, sediment runoff and soil salinization.

Pesticide Training be provided to farmers on proper IAs IAs, County or district Being contamination pesticide selection, application and EPB, agriculture, complied procedure in the field farmer schools, animal/ husbandry with including training on: bureaus

(i) International Code of Conduct on the Distribution and Use of Pesticides (2002); (ii) FAO Guidelines on good practice for ground application of pesticides (2001); (iii) FAO Guidelines on standards for agricultural pesticide application equipment and related test procedures (2001); and (iv) FAO Guidelines on minimum requirements for agricultural pesticide application (2004) (v) Pesticide Management Measures in Ningxia Hui Autonomous Region, issued by Ningxia Autonomous Region Agriculture and Animal/ Husbandry Department on March 1, 2006 (vi) Integrated pest management program to reduce the potential impact from over

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Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage use of pesticides (according to GB 2763— 2014, National food safety standard-- Maximum residue limits for pesticides in food and a series of lists of Prohibited and Restricted Toxic Chemical Pesticidesetc issued by the Ministry of Agriculture, including but not limited to the following: Announcement No.199th of the Ministry of Agriculture; Announcement No.274th and No.322nd of the Ministry of Agriculture; Announcement No.1157th of the Ministry of Agriculture; Announcement No.1158th of the Ministry of Agriculture; Announcement No.1586th of the Ministry of Agriculture; List of prohibited and restricted toxic chemicals in China(first batch, 1998) ; List of prohibited and restricted toxic chemicals in China(second batch, 2005); Announcement No.194th,and 199th of the Ministry of Agriculture; Announcement No.199th and 1586th of the Ministry of Agriculture; Announcement 1586th of the Ministry of Agriculture; and Announcement No.274th and 1586th of the Ministry of Agriculture).

Application of an efficient combination of low toxicity, low-residue and biological pesticides and herbicides.

Limit application times to the mornings after the dew, and not during high winds or high afternoon temperatures

Controlling the number of spray applications.

Where possible, use tunnel or recycling

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Select improved varieties and strong seedlings which have the capacity to resist pests and diseases

No use of pesticides that are restricted by the WHO, environmentally friendly pesticides only

Disposal containers used for pesticides and cleaning

Monitor and forecast development trends of pests and diseases, prevention combined with control

Adaptation of pollution-free cultivation techniques that are currently being carried out in many fruit gardens.

Fertilizers Promote fertilizer efficiency and reduction, IAs IAs, County or district Being contamination and actively explore output efficiency, EPB, agriculture complied product safety, resource conservation and bureau with environment-friendly modern agricultural development model.

Promote high-performance slow-release fertilizers with conservation tillage, straw returning, applications of formula fertilizer and organic fertilizer, drip irrigation, water and fertilizer integrated irrigation technology

Use gypsum and other conditioning agent combined with engineering measures to improve saline soil.

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Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage

4. Dehydration process Biogas dehydration, sofened water system EMC,IA of PMO Being Wastewate in biogas production and domestic sewage be treated in septic Binggou complied r process, drainage of tank then reused in the biogas subproject and with the softened water fermentation system. Biogas boiler Ma’anshan system, the boiler drainage be reused for the plant road subproject sewage and water sprinkling as dust suppression. domestic sewage(Binggou Selection of high quality equipment and subproject) fittings, and to strengthen the daily management and repair and maintenance work to prevent and reduce the occurrence of leaking phenomenon.

Double anti-seepage treatment of feed tank, waste pool, homogenization pond, biogas slurry and residue pond, drying bed, collecting tank for filtered liquid and open trench for waterline. Both main anti- seepage layer and sub-antiseepage layer use nonwoven geotextiles + HDPE film whose thickness is no less than 1.5mm. The specifications of geotechnical cloth is no less than 600g/m2. The bottom pavement compact soil layer. The filtration coefficient of impervious barrier is ≤ 10- 9m/s after taking measures.

Ensure the Maánshan livestock wastewater to be drawn off and directed to a storage tank for managed distribution before releasing to farmland and used as liquid fertilizer.

Implement provisions of Technical Standard of Preventing Pollution for Livestock and Poultry Breeding (HJ/T81-

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Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage 2001). i. separation of stormwater drainage system and sewerage collection system (stormwater to be stored separately for site use); ii. built sewage collection and distribution system in the project site; iii. no open trenches; iv. drainage vessels with anti-seepage Impact on surface measures or cement pipes to convey water quality from wastewater and prevent overflow and livestock wastewater infiltration; (for Maánshan v. all storage facilities, pre-treatment tanks, subproject) digesters, settling tanks, drainage pipes, digestate storage tanks, and rain water collection tanks should be designed with high quality materials and monitored for Impact on leaks. groundwater quality(for Maánshan subproject) 5 Exhaust Biogas boiler gas, Biogas boiler exhaust gas be released EMC,IA of PMO Being emission odor produced by through a 10m high stack, Binggou complied and noise pretreatment subproject and with impacts workshop and Pretreat treatment workshop exhaust be Ma’anshan fugitive odor caused treated through biological filter pool subproject by the biogas plant (deodorant system) then released to the area (Binggou air, subproject) Biogas slurry storage be located near tall trees and sprayed with deodorant, etc.

In local planning, maintain a 500 m distance around site in compliance with Technical Standard of Preventing Pollution for Livestock and Poultry Breeding (HJ/T81-2001) to prevent residential

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6. Solid Using agricultural Implement local government developed EMC,IAs/farmers/ PMO, local Being Waste film comprehensive plastic film recycling agricultural governments, local complied program and subsidy policy; residual film finance, auditing , with recycling outlets agriculture, animal Monitor and enforce plastic film recycling and agricultural and husbandry, measures through local recycling system, residual film discipline inspection double-entry mechanism and other processing plants and other regulatory system (for details please see departments the para. 106 of the Addendum);

Capacity building be conducted for local famers during operation period, improving their consciousness to the impact of residual agricultural film for production, taking active actions to restore and clean agricultural film and reducing agricultural film usage. What’s more, training them to use degradable agricultural film.

Waste branches and Hire local farmers. to recycle waste EMC,IAs/farmers PMO Being leaves from branches and leaves for fertilizer, feed or complied trimming of fuelwood with ecological shelter forest Unplanned or All livestock solid waste generated in EMC,IA of PMO Being unsound disposal of animal production shall be handled and Ma’anshan complied livestock solid disposed of by arrangements on-site or off- subproject with wastes (for site. Off-site arrangements must have the Maánshan capacity and willingness to accept waste in subproject) the long term.

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Impact Potential Impacts Mitigation Measures Project Supervising Implementation status Factor and/or Issues Implementing Agency during this reporting and/or Company period Stage

7. Health Health and safety of Operating staff be protected from EMC, IAs PMO and local safety Being and safety operating staff workplace hazards by; production complied i. safe storage and handling of pesticides, supervision and with and chemicals for disinfection of facilities health departments and livestock, ii. safe handling of pesticides, chemicals, serums, and veterinary pharmaceutics in laboratories; iii. personal protection gear for work hazards; iv. staff protection from exposure to animal diseases.

8. Insufficient Conduct training for environmental EMC, IAs PMO Being Environme environmental management complied ntal management Conduct training for the grape processing with manageme capacity plant staff, to ensure staff are competent in nt plant processes and occupational health and safety measures

Refine and maintain a grievance redress mechanism. ADB = Asian Development Bank, DRC = development and reform commission, EIA = environmental impact assessment, EMC = environmental management consultant, EMP = environmental management plan, EPB = environmental protection bureau, GB = Guo Biao (national standards), IA = implementing agency, IEE = initial environmental examination, IEM = independent environmental monitor, m = meter, NEPD = Ningxia Environmental Protection Department, NFD = Ningxia Finance Department, OEE = onsite environmental engineer, PMO = project management office, PPTA = project preparatory technical assistance, PRC = People‘s Republic of China, WRB = water resources bureau. Sources: Domestic EIA report, and consultations with county and district EPBs.

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35. In conclusion, the overall project mitigation measures have been implemented in line with the EMP.

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4 Summary of Environmental Monitoring

4.1 Monitoring plan

36. The implementation of environmental monitoring program in construction project is mainly in two stages, the first stage is monitoring in construction phase; the second stage is the monitoring after putting into operation. According to the project environment characteristics, construction phase and operation period environmental monitoring program are shown in Table 4-1.

37. This program considers the scope of monitoring, environmental media, monitoring parameters, time and frequency, implementing and supervising agencies. The monitoring follows the methodology provided in the national standard methods for monitoring pollutants. Other associated standards are national environmental quality standards and pollutant discharge/emission standards.

38. Internal monitoring and inspection. The PMO nominate at least one qualified full- time environmental management staff member to undertake environmental management and monitoring activities. The PMO further engage a national environmental management consultant (EMC) to assist the PMO and IAs including project implementing offices (PIOs) in carrying out internal monitoring and inspection, reporting to ADB through quarterly project progress reports, annual environmental monitoring reports, and a project completion report, and conducting necessary training. The PMO and IAs, with assistance from the EMC, conduct internal monitoring and inspection on the progress of the EMP, information on project implementation, the environmental performance of the contractors, and environmental compliance, considering reports submitted by contractors, environmental monitoring stations (EMSs), environmental institutes, and independent environmental monitors (IEMs).

39. Monitoring and inspection. EMS at the municipal level be responsible to undertake regular and random monitoring and inspection before, during, and after construction, as well as in the event of emergencies. If abnormalities are found, the EPB impose a fine and issue a notice of rectification with a specific deadline.

40. Independent environmental monitoring. Local environmental monitoring agencies and/or companies be engaged by IAs as IEMs. Each IEM include an environmental safeguard specialist to conduct independent environmental monitoring. The independent environmental monitoring be conducted to ensure that contractors appropriately implement mitigation measures and that project environmental objectives are achieved. The results of the environmental monitoring form part of quarterly project progress reports, annual environmental monitoring reports, and a project completion report that be submitted to the ADB. IEMs assist NFD including the PMO in reporting to ADB the project progress on environmental issues through quarterly project progress reports, annual environmental monitoring reports, and a project completion report.

41. Results of monitoring be used to evaluate: (i) the extent and severity of environmental impacts compared with the predicted impacts, (ii) performance of the

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environmental protection measures and other project requirements, (iii) trends of impacts, and (iv)overall effectiveness of the EMP. Effectiveness of mitigation measures and monitoring plans be evaluated through a feedback reporting system. Modification of measures required by the EMP be performed, if necessary.

42. The environmental monitoring program is in Table 4-1. So far, an EMR was submitted and disclosed on the ADB project website in January 2015(https://www.adb.org/projects/documents/prc-ningxia-irrigated-agriculture- water-conservation-demonstration-project-jan-jun-2014-emr), which concludes overall compliance, however, indicates the issue of lacking monitoring data. Cost estimates for the environmental monitoring program are in Table 4-2. Before implementing the monitoring plan, responsible agencies provide more accurate estimates of the costs and present a further detailed breakdown of the cost estimates. During project implementation, the costs are adjusted based on actual requirements.

Table 4-1: Environmental Monitoring Program and Implementation Status(as of 31 Dec 2018)

Item Parameters Location Time and Implementing Supervising Implementati Frequency Agency Agency on status during this reporting period A. Internal Monitoring and Inspection 1. Progress on Follow All sites Weekly Contractors, PMO, IAs, Being fulfilled. EMP and project parameters set SC EMC , NEPD, implementation for monitoring and ADB inspection, audit, and independent 2. Environmental monitoring Being fulfilled Performance

3. Environmental Being fulfilled. Monitoring

B. Project Monitoring* 1. Water Convert existing All sites Annual EMSs IAs, county Being fulfilled. Conservation flood irrigated and district crops to drip / EPBs pipe irrigated agriculture. Record: hectares of land in which drip irrigation is installed; kilometers of drip irrigation pipes installed along crop rows which were previously flood-irrigated

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Item Parameters Location Time and Implementing Supervising Implementati Frequency Agency Agency on status during this reporting period 2. Appropriate Visual inspection Record Annual EMSs IAs, county Being fulfilled. application of to confirm actual and district pesticides, application of volumes EPBs herbicides and fertilizer, of fertilizer; plastic pesticides and herbicide/ film and its herbicides in pesticide/ collection/recyclin accordance with fertilizer g operational phase applicatio mitigation ns/ measures listed plastic above. film and its collection /recycling during and after the project.

3. Wastewater pH, COD, TSS 100 Monthly EMSs IAs, county Being fulfilled. discharge from meters sampling during and district grape processing downstre discharge EPBs facilities, am from periods from the grape discharge processing outlet of facilities. each grape processin g facility;

4. Surface water PH, COD, TSS Closest Monthly EMSs IAs, county Being fulfilled. quality artificial and district reservoirs EPBs to Wuhudun and Maánsha n subprojec ts

5. Cultural Great wall of Ming Wuhudun Monthly IAs, EMC Ningxia city Being fulfilled. heritage Dynasty subprojec and Xingqing t district cultural relics departments

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Item Parameters Location Time and Implementing Supervising Implementati Frequency Agency Agency on status during this reporting period 6. Land Visual inspection 1 Inspect at EMSs IAs, county Being fulfilled. degradation for gully, sheet monitorin beginning of and district improvements erosion, or g location construction and EPBs surface for each quarterly expressions of site thereafter. saline soil. Visual Conduct inspection of all Photographic sites. documentation of construction sites before, during and after the project at set locations (especially at sites which may be especially vulnerable to land degradation). 7. Shelterbelts Visual inspection 1 Inspect at EMSs IAs, county Being fulfilled. for (a) the number monitorin beginning of and district of hectares g location construction and EPBs planted, (b) the for each quarterly planting survival site thereafter. rate. Conduct Visual Photographic inspection of all documentation sites. Conduct during each Photographic inspection. documentation.

C. Project Completion Environmental Audit 1. Water Balance Visual inspection Visual Upon project EMSs IAs, county Not yet due to confirm at least inspectio completion and district 90% of new or n of all EPBs existing vineyard sites to and Chinese Date document land area in the area of Project have land installed water- converted efficient irrigation to drip or systems such as pipe drip or pipe irrigation, irrigation by 2016. and new areas of irrigated land with drip or pipe irrigation.

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Item Parameters Location Time and Implementing Supervising Implementati Frequency Agency Agency on status during this reporting period 2. Appropriate Visual inspection Visual Upon project EMSs IAs, county Not yet due application of to confirm inspectio completion and district pesticides, application of n of all EPBs herbicides and fertilizer, sites fertilizer pesticides and herbicides in accordance with operational phase mitigation measures listed above.

D. Independent Environmental Monitoring 1. Mitigation Mitigation All sites Annually IEMs IAs, county Being fulfilled. Measures by measures to be and district Contractors implemented by EPBs contractors (listed in Table 3-1) BOD = biochemical oxygen demand, COD = chemical oxygen demand, dB(A) = A-weighted decibel, EMC = environmental management company/consultant, EMP = environmental management plan, EMS = Environmental Monitoring Station at the city level, EPB = Environmental Protection Bureau, IEM = independent environmental monitor, the IEMs be independent third parties hired by the IAs, IA = implementing agency, Leq = equivalent continuous noise level, m = meter, NH3-N = ammonia nitrogen, pH = measure of acidity and alkalinity, PM10 = particulate matter smaller than 10 micrometers, PMO = project management office, NEPD = Ningxia Environmental Protection Department, TN = total nitrogen, TP = total phosphor, TSP = total suspended particulates, TSS = total suspended solids Source(s): Domestic EIAs, and consultations with PMO, county and district EPBs, and IAs. * Independent government monitoring include compliance and contractor monitoring, and is outside the scope of this Project EMP.

43. Internal supervision report: In the construction phase, signatory supervision company with the cities (counties) implement internal supervision, and reflect the results in the regular construction report. The report content should be summed up as follows: the environmental problems in construction; mitigation measures which be taken possibly; the influence result to the environment and the surrounding area. According to the requirements of the environmental management plan, construction side should accept training for taking measures to alter the adverse effects timely, or have the ability of improving and taking mitigation measures, implementing agencies should cooperate with construction side to take measures appropriately and timely. In construction phase, implementing agencies should draw up detailed internal environmental monitoring scheme and measures, and submit to cities and counties project management office in time.

44. External monitoring report: In project construction phase and operation period, monitoring content mainly include: construction and operation activities; environmental conditions; monitoring sampling locations; analyze the results; monitoring explanation and meaning of results; put forward improvement suggestions. Environmental monitoring report are implemented by each county (city), they statistically process the monitoring data, summarize through the tabular form, write

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the monitoring report, and submit to Ningxia project management office; Ningxia Project Management Office write general environmental monitoring report in accordance with the report submitted by cities and counties PMO, then submit to Ningxia Project Leading Group and ADB.

45. Some monitoring forms submitted by project implementation agencies to the project management office are still not complete, especially some blank cells written by using monitoring data is not easy to measure and monitor. However, it does not seriously distorted and/or affect the monitoring results.

4.2 Monitoring Results

Ecology, vegetation and Land Use Trends

46. Detailed records of satellite maps and field photos of the project area please see the Appendix 1. Vegetation status in Ningxia (related to the Project Area) please see the Appendix 2. Soil status in rural Ningxia(related to the Project Area) please see the Appendix 3. From the view of environmental protection and ecological protection, ecological type in the project area is unitary and the ecological structure is relatively simple, implementation of overall project is well. Throughout the project implementation area, the environment condition is quite good which reflecting there is no serious environmental pollution incidents, no large amounts of solid wastes which is from the construction site or due to the improper handling operation activities, and no obvious environmental deterioration in appearance, also no complaints about environmental problems from the public in project implementation area.

Estimated project ecological and environmental benefits derived (as of 31 Dec 2018)

47. Combating land degradation and desertification. The Improved irrigation system has been installed for 4 vineyard farms and 1 Chinese date orchard with a total area of 1466.2 hectare (ha) which has the potential to make a positive contribution towards combating land degradation and desertification in Ningxia, through the application and promotion of improved agricultural practices, including the following: The overall outcome is reduced soil erosion and increase land productivity. (i) Drip and pipe irrigation replacement of current flood irrigation practices on approximately 1466.2 ha of existing farmland resulting in reduced water requirements; reduced farmland soil erosion of 4,912t/year; and reduced discharge of nutrients, pesticides, and sediment into surface water and groundwater; (ii) Improved agricultural practices, including promoting the use of organic fertilizers such as manure, promoting zero-tilling practices to reduce disturbance of soil, and inclusion of intercropping to increase soil stability; and

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(iii) Expansion of dryland agriculture on approximately 1466.2 ha of degraded land contributing to increased soil stabilisation (through establishment of shelterbelts and cropped land) and increased soil quality (through the application of organic fertilizers).7

48. Improved irrigation water use efficiency. The Improved irrigation system installed for 4 vineyard farms and 1 Chinese date orchard with a total area of 1466.2 hectare (ha) is expected to save approximately 5,2788 MLs of irrigation water currently being applied flood irrigation and high water demand crops. The project improve water use efficiency on approximately 1466.2 ha of land. Improved irrigation water efficiency brings environmental benefits including providing a buffer for adaptation to the potential impacts of climate variability, and demonstration of sustainable agriculture techniques that can be replicated.

49. Carbon sequestration. The project establish approximately grapes, Chinese date trees, and forested shelterbelts on land currently supporting sparse vegetation. The establishment of new vegetation has the potential to sequester carbon dioxide. Based on published average rates for carbon sequestration for agriculture and forestry 9 , the area of newly established grapes, Chinese dates, and forested shelterbelts result sequestration to between 3,079 tons of carbon dioxide per year.

Physical Environment

50. Detailed climate of the project area please see the Appendix 4. In the context of global climate change, Ningxia is also experiencing quietly climate change, and the impact on the region's economic and social development are becoming increasingly evident. This also increases the impact on agriculture. Climate change caused instability in crop yields, decreased quality, increased pests and diseases, increased agricultural production costs. Winter wheat moved north, wolfberry expanded south, grape varieties diversification grew and the proportion of late-maturing varieties gradually increased. Global warming makes the thermophilic crops such as corn, rice yields increased; and climate guaranteed rate of double cropping in the irrigated area improved. Hi cool wheat and potato crops have cut trend. At the same time, rising temperatures decreases air humidity, increases agricultural water consumption, so the water shortage is even more severe.

51. Environment Quality in the Project Area including water quality and air quality please see the Appendix 5. In 2017, monitoring results at six state-controlled sections of the Yellow River in Ningxia reached GradeⅡwhich is excellent quality, the overall water quality improved. In 2017, the proportion of average fine air quality in five prefecture- level cities in the region was 76.4%, up 1.2 percentage points year-on-year.

52. It is important to maintain compliance throughout the entire project implementation including trial-operational stage. The individual environmental consultant (LIEC)

7http://www.worldbank.org, at 3.35t/ha of annual soil erosion reduction. 8 Estimated based on the IEE dated 2012, ie, water savings at 240m3/mu/year. 9 To estimate carbon sequestered (in metric tons of CO2) by additional forestry acres in one year, simply multiply the number of acres by 0.85 mt CO2 acre/year, ie, 2.1 mt CO2/ha/year. (source: https://www.epa.gov/)

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visited the project sites in November 2018; reviewed the EMP implementation status through 2014-2018 and found overall compliance with the updated EMP requirements; and advised that disturbance to original site ecology be minimized where possible and stringent construction site management be implemented to avoid any adverse impact to the Great Wall of Wuhudun; also reminded the PIOs of the potential environmental impacts from the associated facilities - vineyard and grape processing facilities (e.g. in Hongsipu)－ which have wastewater implications. The PIOs reported that wastewater collection and treatment facilities were under construction. The individual environmental consultant collect relevant information from the PIOs and document such compliance status in future EMRs to ADB. Besides, the PMO/PIOs confirmed that no environmental complaint or grievance has been received so far.

4.3 Cost Estimates for Environmental Management

53. The IAs with help from the PMO develop detailed plans for procurement of equipment and materials, and civil works for implementing mitigation measures and monitoring plans. Environmental considerations be incorporated into the bidding documents and contracts to ensure environmentally responsive procurement.

54. Cost estimates for mitigation measures, environmental monitoring, and environmental administration are summarized in Table 4-2. The total cost for five years of project environmental monitoring and training is estimated to be CNY 1,496,250 (including the proposed newly added road in Hongsipu and replacement of yellowhorn orchard in Tongxin). Before implementing a monitoring plan, responsible agencies present a more detailed breakdown of the estimated budget. During project implementation, the budgets be adjusted based on actual requirements. Contractors bear the costs for all mitigation measures during construction, land preparation and planting, which be included in the bidding documents and contracts. The IAs bear costs related to mitigation measures during operation. Costs related to environmental supervision during construction, land preparation and planting and operation be borne by the IAs. Costs for capacity building be borne by the project as a whole. During the operation phase, the training costs be included in the operation and maintenance budget.

Table 4-2: Cost Estimates (CNY) for EMP to be covered by the ADB Loan Year 1 Year 2 Year 3 * Year 4 Year 5 Year 6 (2014) (2015) (2016) (2017) (2018) (2019) Detailed EMP development 89,000 - - - - Environmental training and 45,000 45,000 45,000 45,000 45,000 capacity building Construction phase 61,357 61,357 61,357 61,357 61,357 61,357 monitoring Operational monitoring - 260,000 260,000 260,000 Contingency (5%) 9,768 5,318 5,318 5,318 5,318 3,068 Total per year 205,125 111,675 111,675 371,675 371,675 324,425 Grand total 5 years 1,496,250 * As of December 2016, the overall project progress was about 43% against 60% of time elapsed. Project activities other than those involved in scope changes have been completed.

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55. Itemised annual costs are provided in Table 4-3. These costs be entirely funded by the executing agency and not from the ADB loan.

Table 4-3: Construction Phase Environmental Monitoring Costs Environmental Aspect Cost Estimate (CNY) Construction Phase Environmental Monitoring Costs Independent environmental monitoring 30,000 Ambient Air 30,000 Water quality 15,000 Ambient Noise 18,000 Vegetation disturbance and soil and erosion 30,000 Operational Phase Environmental Monitoring Annual Cost Estimate Independent environmental monitoring 50,000 Water Quality 84,000 Ambient Air Quality 10,800 Ambient noise 20,000 Soil quality Monitoring 63,000 Greening 1,800 Soil and water conservation 25,000 Pests and diseases 3,600 Total 381,200

4.4 Performance Indicators

56. Table 4-4 outlines acceptance criteria for key aspects of the environmental performance of the project.

Table 4-4: Performance Indicators(as of 31 Dec 2018)

Item Parameters Targets Achievements Water Conservation Water use In the project area total irrigated The Improved irrigation area has been increased by 37,850 system installed for 4 mu (2,523 ha), but depending on vineyard farms and 1 annual weather fluctuations, Chinese date orchard annual irrigation water with a total area of consumption has been reduced in 1466.2 hectare (ha) is the order of 10 million m3. expected to save Irrigation water use should be 1.9 approximately 5.3 million ML/ha (plus or minus 20%) m3 of irrigation water currently being applied flood irrigation and high water demand crops.

Wastewater discharge pH 5.5–8.5mg/L Not available. To be from grape processing TN 30 mg/L reflected in future facilities** TP 10 mg/L reporting periods. BOD 100 mg/L COD 100 mg/L TSS 100 mg/L

Irrigation water quality** pH 5.5–8.5mg/L Not available. To be TN 30 mg/L reflected in future TP 10 mg/L reporting periods. BOD 100 mg/L COD 100 mg/L TSS 100 mg/L

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10 3 3 Air quality SO2 150 ug/m Complied. 10-55 ug/m in 2017 3 3 PM10 150 ug/m Complied. 90-117 ug/m in 2017 Noise11 Leq (dB(A)) Not exceeding 60 decibels [dB(A)] Complied. 24-hour in daytime and average level: 52.5 dB(A) 50 dB(A) in nighttime in 2017 * Based on average concentrations from base line monitoring detailed in Table 11 of the IEE dated in 2012.

Table 4-5: Monitoring index system for farmland, woodland, grassland and orchard type and Its Achievements (as of 31 Dec 2018)

I. Vegetation Index 1 2 3 4 5 6

Forest &Grassland Woodland Shrub &Grass Abandoned Cultivated Exotic

coverage region area area Land area area Invasion

Number

Time Location Type % hm2 hm2 hm2 hm2 2018-6- Qukou Farm FWGO 10.2 473 210 None 2520 None 28 2018-6- Lianhu Farm FWGO 9 230 86 None 1233 None 29 2018-6- Yuquanying FWGO 9 471 200 None 2267 1 30 Farm

2018-7- Hongsipu FWGO 333 1 Xiaojiayao Source: the IAs

Time Location Type II. Natural IV. Air Conservation III. Soil & Soil Erosion Index Quality Area Index Index 1 1 2 3 4 1 Soil Soil Day Num. Day Num. Day Num. Odor Salini Erosion of Dust of of Flood zation and Sand Storm Wind Wind hm2 t/(km2 d/a /a) 2018-6-28 Qukou Farm FWGO No No 26 13 5 No 2018-6-29 Lianhu Farm FWGO No No 30 15 5 No 2018-6-30 Yuquanying FWGO No No 30 15 5 No Farm 2018-7-1 Hongsipu FWGO No No 40 7 No Xiaojiayao Source: the IAs

10 2017 Annual Environmental Statement in Ningxia, http://www.nxep.gov.cn/info/2796/101489.htm. The 2018 Annual Environmental Statement in Ningxia has not yet issued. 11 Ibid.

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Time Location Type V Groundwater Quality Index 1 2 3 4 5 6 7 8 Groundwater Bury in Turbidity SS pH Nitric Acid Integration Irrigation Well Density (NitrateWater Quality Nitrogen) Index Still Water % Draw Water m3/h NTU TDS, mg/L Level hm2 mg/L 2018-6 Qukou FWGO 6.3 12 80 No 863 7.87 7.4 II -28 Farm 2018-6 Lianhu FWGO -29 Farm 2018-6 Yuquanying FWGO 4.8 10.8 80 No 863 7.73 7.4 II -30 Farm 2018-7 Hongsipu FWGO -1 Xiaojiayao Source: the IAs WLFP: wetlands, landscape lakes and fishing ponds; FWGO: farmlands, woodlands, grasslands & orchards; CC: subcomponent in construction; CO: subcomponent in operation

4.5 Public Consultation

57. Future plans for public involvement during the design, construction, and operation phases were developed during the project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the project is completed. They include several types of consultations, e.g., site visits, workshops, investigation of specific issues, interviews, and public hearings (Table 4-6).

58. Public participation plans are part of the project implementation and management plan. The IA is responsible for public participation during project implementation. The IAs also establish environmental management units (EMU) for supervising implementation, continuing public consultation, monitoring progress, and responding to grievances. The staff at the offices be well trained to handle crisis situations or conflicts with residents due to distress from environmental impacts. Costs for public participation activities during project construction are included in the project funding. The costs are estimated as CNY3,000 for each expert workshop, CNY5,000 for each public workshop, and CNY6,000 for each press conference. Costs for public participation activities during operation be covered by the IA. In addition, the established feedback mechanisms ensure timely feedback and measures to address any concerns raised by the project affected communities.

Page | 53 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Table 4-6: Public Consultation Program and Implementation Status (as of 31 Dec 2018)

Organizer Approach and/or Times Subjects Participants Implementation status during this reporting period 1. Project Preparation PMO, IAs, Design EIA public opinion surveys: Priority, design, PMO, IAs, Fulfilled. Institutes, EIA once for each subproject environmental Design institutes, county benefits and Institutes, EIA and district EPBs Socioeconomic and AP impacts, social institutes, surveys benefits and country and impacts, district EPBs, Public consultation meeting mitigation other regional, and questionnaire: once for measures, municipal, overall project attitudes toward county and subproject district Site visits: at least twice per project, and government year suggestions stakeholders, community representatives 2. Construction PMO, IAs, EMC, Public consultation and site Adjusting Residents within Being fulfilled. IEMs visits: at least once a year mitigation construction measures if area necessary, construction impacts, comments and suggestions Public information session: Adjusting Representatives Being fulfilled. at least once a year mitigation of residents and measures if social sectors necessary, construction impacts, comments and suggestions 3. Test Operation

PMO, IAs, EMC, Questionnaire survey: at Comments and Local residents Not yet due. IEMs least once during test suggestions on and social operation operational sectors, county impacts, public and district Site visits: multiple, suggestions on EPBs depending on results of corrective actions project completion environmental audit

4. Operation

PMO, IAs Site visits: once every 6 Irrigation system Farm manager, Not yet due. months by IEMs and PMO operational local residents performance, adjacent to informal farms interviews with local residents

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Organizer Approach and/or Times Subjects Participants Implementation status during this reporting period Expert workshop or press Expert comments Experts from conference: as needed and suggestions residents, social based on public on corrective sectors, media consultation and workshop measures AP = affected person, EIA = environmental impact assessment, EMC = environmental management consultant, EPB = environmental protection bureau, IEM = independent environmental monitor, IA = implementing agency, PMO = project management office, NEPD = Ningxia Environmental Protection Department. Source(s): Domestic EIAs, and consultations with PMO, NEPD, county and district EPBs, and IAs.

4.6 Grievance Redress Mechanism

59. Public participation, consultation and information disclosure undertaken as part of the local EIA process, assessment, and development of resettlement plans; and consultations undertaken by the project consultants have discussed and addressed major community concerns. Continue public participation and consultation has been emphasized as a key component of successful project implementation. As a result of this public participation and safeguard assessment during the initial stages of the project, major issues of grievance are not expected. However, unforeseen issues may occur. In order to settle such issues effectively, an effective and transparent channel for lodging complaints and grievances has been established.

60. In the event of a grievance issue, the basic stages established for redress are outlined below and depicted (which was translated into Chinese and distributed by the EA to residents in the project). Note that Steps 1-5 are for the project construction phase, and steps 2-5 are for the project operation phase.

(i) Stage 1. If a concern arises during construction or operation of the project, the affected person tries to resolve the issue of concern directly with the contractor project manager (i.e. the superintendent overseeing the works). If successful, no further follow-up is required.

(ii) Stage 2. If not successful, the affected person can submit an oral or written petition/complaint to the village committee. 12 For an oral complaint, the village committee must make written records properly. The village committee must give a clear reply within 2 weeks. The IEM assist the village committee in replying to the affected person. Village committees are not part of the formal project structure, but provide an obvious first line of support for an affected resident in a village. The village committees represent the government at the community-level and provide the link to the county-level agencies, which in turn link to the IAs, and respectively higher levels, as required.

(iii) Stage 3. If the affected person is not satisfied with the reply in Stage 2, he/she can appeal to the township government after receiving the reply in Stage 1 and the township government must give a clear reply within 2 weeks. The IEM assist the

12 In the project cities/counties, the village committees are aware of their responsibilities and regulatory procedures.

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township government in replying to the affected person.

(iv) Stage 4. If the affected person is still not satisfied with the reply of township government, he/she can appeal to the IA. The IA, through the PMO and PIOs, must inform the ADB project officer as soon as the complaint is recorded, by submitting relevant documents. The IA, through the EMU established in the IA, must prepare a clear reply in consultation with the EPB, EMC, and IEM, and give it to the affected person within 30 days.

(v) Stage 5. If the affected person is still not satisfied with the reply of the IA, he/she can appeal to the PMO after receiving the reply of Stage 4. The PMO must report to ADB as soon as the complaint is recorded by submitting relevant documents, and prepare a clear reply in consultation with the EMUs, EMC, IEMs, and ADB. The PMO must give the reply to the affected person within 30 days. The PMO assess the situation, contact the affected person and Government project counterparts, and design and implement the course of actions. The ADB project team be kept informed of progress by the PMO and provide advice as necessary.

(vi) Note. The EA and PMO ensure that clear lines of communication are identified for each responsible agency in the GRM, including the PIOs, IAs, village committees, and contractors. These lines of communication include: (a) the names of specific contact personnel in each agency; (b) contact work telephone numbers for these personnel and their office; (c) if available, contact fax numbers and/or email addresses. Contact names and details for each agency be presented in Chinese language, prior to the distribution of this below figure as a project poster among communities in the project sites. Both the EA and PMO each designate a specific contact person in their respective agencies, who be responsible for collecting, documenting, and tracking any complaints received through the PIOs, IAs, village or township committees, or work contractors, and for ensuring that any affected persons are responded to in a timely fashion.

Page | 56 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Figure : Summary of Grievance Redress Mechanism for Project Construction and Operation

4.7 Reporting and Supervision

61. Monthly construction reports. During the construction, land preparation and planting period, contractors submit monthly construction reports to the IAs. The reports summarize: (i) environmental issues during construction, land preparation and planting; (ii) mitigation measures taken, if any; and (iii) consequences of the impacts on the environment and/or surrounding communities.

Page | 57 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

62. The contractors be trained to take immediate actions to remedy unexpected adverse impacts or ineffective or inefficient mitigation measures, as required by the EMP. IAs also respond to these reports in order to ensure that the contractors have taken appropriate and timely action. Additional measures may be taken, if needed, to ensure that all issues raised by the reports are appropriately addressed.

63. The reported environmental issues, mitigation measures, and the impacts be reported to the PMO quarterly, and NEPD and county and district EPBs semiannually, then ADB annually. NEPD, county and district EPBs and ADB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

64. Monitoring reports. On behalf of the IAs, the local EPBs delegate monitoring to the local EMSs. The EMSs conduct regular and random environmental monitoring activities before, during, and after construction, land preparation and planting, as well as in the event of emergencies, according to the PRC environmental regulations. The monitoring reports include: (i) project background, (ii) construction, land preparation and planting and operation activities, (iii) environmental conditions, (iv) measurement or sampling taken during auditing and their locations, (v) analytical results, (vi) interpretation and implication of the monitoring results, (vii) determination of the status with regard to applicable regulations and standards, and (viii) recommendations for improvement. These reports be submitted to the IAs which forward those to NEPD, county and district EPBs, and the PMO.

65. Independent environmental monitoring reports. IEMs submit independent environmental monitoring reports on an annual basis to IAs which forward those to the PMO, NEPD, county and district EPBs, and ADB. The reports emphasize: (i) progress made in implementing the EMP, (ii) implementation of mitigation measures, (iii) environmental compliance, (iv) institutional strengthening and training, (v) public consultations, and (vi) problems and corrective actions taken, including any complaints (number, type/kind, issues, resolution) sent to the GRM.

66. Quarterly project progress reports and project completion report. Based on the monthly construction reports, project monitoring and audit reports, and independent environmental monitoring reports submitted to the PMO, the PMO, with assistance from the EMC, report to ADB on a quarterly basis the progress of the EMP, information on project implementation, and the environmental performance of the contractors, through quarterly project progress reports. Any complaints received under the GRM should be reported in the quarterly project progress reports and annual environmental monitoring reports submitted to ADB. In addition, within 3 months of physical completion of the project, the PMO submit to ADB a project completion report that describes the achievements in relation to the project's expected impact, outcome, and outputs including environmental terms. ADB may request that further environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

67. The environmental reporting plan is presented in Table 4-7.

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Table 4-7: Environmental Reporting Plan and Implementation Status (as of 31 Dec 2018)

Reports From To Frequency Implementati on status during this reporting period Construction, land Contractors IAs Monthly Being fulfilled preparation and planting reports

Project monitoring EMSs IAs (forwarded to As per the Being fulfilled reports PMO, NEPD, and PRC county and district regulation EPBs)

Independent IEMs IAs (forwarded to Annual Being fulfilled environmental PMO, NEPD, and monitoring reports county and district EPBs) and ADB

Quarterly Project PMO, EMC ADB Quarterly and Being fulfilled Progress Reports within 3 and Project months of Completion Report physical completion of the project ADB = Asian Development Bank, EMC = environmental management consultant, EPB = environmental protection bureau, EMS = environmental monitoring station at city or county level, IEM = independent environmental monitor, IA = implementing agency, NEPD = Ningxia Environmental Protection Department, PMO = project management office, PRC = People‘s Republic of China-. Source(s): Domestic EIAs, and consultations with the EPBs, IAs, NEPD, and PMO.

Page | 59 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Note: The following environmental related reports were prepared for the Project in this reporting period (as shown in the table below):

 Environmental Protection Operation And Supervision Plan/Manuals, by contractors  Environmental supervision monthly reports, by the CSCs;  The second semi-annual EMR, by the LIEC.  Summary of the Completed Environmental Related Reports during this Reporting Period (as of 31 December 2018) No. Environmental Reports and preparer Reporting Period Prepared in/on Submitted in/on Semi-annual EMR 1 The second semi-annual EMR by the loan implementation environmental 1 July 2014 to 31 December Jan 2019 31 Jan 2019 monitoring consultant 2018 IA’s OHSE documents 2 Three IAs’ monthly reports Nov 2018 14 Dec 2018 Dec 2018 3 Tongxin sample civil works contract’s OHSE clauses (TX-W-N-2018002 Contract negotiation stage N/A Oct 2018 reservoir) Contractors’ site specific EMP, soil erosion prevention plan, safety/occupational/health management plans 4 YC-WN-2018001 Binggou water saving and ecological agricultural Commencement of May 2018 Dec 2018 demonstration zone bid 1: Pumping station and reservoir engineering construction period (dust control plan, traffic management plan, safety check management guidelines, fire prevention guidelines, PPE dissemination records, summary of EMP implementation expenses incurred) 5 YC-WN-2018002 Pump station and reservoir engineering (semi- Commencement of May 2018 Dec 2018 underground) (bid 2) construction period (dust control plan, traffic management plan, safety check management guidelines, fire prevention equipment dissemination records, PPE dissemination records, summary of EMP implementation expenses incurred) 6 YC-WN-2018004 Main water transmission pipelines - bid 1 Commencement of May 2018 Dec 2018 (dust control plan, safety check management guidelines, fire prevention construction period equipment management guidelines, fire prevention management guidelines, summary of EMP implementation expenses incurred) 7 YC-WN-2018005 Main water transmission pipelines - bid 2 Commencement of May 2018 Dec 2018 (dust control plan, safety check management guidelines, fire prevention construction period equipment management guidelines, fire prevention management guidelines, summary of EMP implementation expenses incurred) 8 YC-WN-2018014 Land fertilizing and consolidation Commencement of May 2018 Dec 2018 (dust control plan, safety check management guidelines, fire prevention construction period equipment management guidelines, fire prevention management guidelines, summary of EMP implementation expenses incurred, earth and stone balance) 9 YC-WN-2018019 Operation road and loop road (bid 1) Commencement of May 2018 Dec 2018 (dust control plan, traffic management plan, safety check management construction period guidelines, , fire prevention management guidelines, PPE dissemination

Page | 60 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) No. Environmental Reports and preparer Reporting Period Prepared in/on Submitted in/on records, summary of EMP implementation expenses incurred, earth and stone balance) Contractors’ Emergency preparedness plan 10 YC-WN-2018001 Binggou water saving and ecological agricultural Commencement of N/A Dec 2018 demonstration zone bid 1: Pumping station and reservoir engineering construction period (for pipeline breakage) 11 YC-WN-2018002 Pump station and reservoir engineering (semi- Commencement of N/A Dec 2018 underground) (bid 2) construction period (for pipeline breakage) 12 YC-WN-2018004 Main water transmission pipelines - bid 1 Commencement of N/A Dec 2018 (for machinery injury) construction period 13 YC-WN-2018005 Main water transmission pipelines - bid 2 Commencement of N/A Dec 2018 (for machinery injury) construction period 14 YC-WN-2018014 Land fertilizing and consolidation Commencement of N/A Dec 2018 (for pipeline breakage) construction period 15 YC-WN-2018019 Operation road and loop road (bid 1) Commencement of N/A Dec 2018 (emergency preparedness plan) construction period Contractors’ environmental/safety/occupational health training, public consultation records 16 YC-WN-2018001 Binggou water saving and ecological agricultural During construction period, N/A Dec 2018 demonstration zone bid 1: Pumping station and reservoir engineering as required (safety education guidelines, public consultation records) 17 YC-WN-2018002 Pump station and reservoir engineering (semi- During construction period, N/A Dec 2018 underground) (bid 2) as required (safety training records, public consultation records) 18 YC-WN-2018004 Main water transmission pipelines - bid 1 During construction period, N/A Dec 2018 (safety education guidelines, safety training records, public consultation as required records) 19 YC-WN-2018005 Main water transmission pipelines - bid 2 During construction period, N/A Dec 2018 (safety education guidelines, safety training records, public consultation as required records) 20 YC-WN-2018014 Land fertilizing and consolidation During construction period, N/A Dec 2018 (safety education guidelines, safety training records, public consultation as required records) 21 YC-WN-2018019 Operation road and loop road (bid 1) During construction period, N/A Dec 2018 (safety education guidelines, safety training records, public consultation as required records) CSCs or contractors’ Environmental supervision monthly reports (representative) 22 YC-WN-2018001 Binggou water saving and ecological agricultural Sept 2018 25 Sept 2018 25 Sept 2018 demonstration zone bid 1: Pumping station and reservoir engineering Oct 2018 25 Oct 2018 25 Oct 2018 Nov 2018 25 Nov 2018 25 Nov 2018 23 YC-WN-2018002 Pump station and reservoir engineering (semi- Sept 2018 25 Sept 2018 25 Sept 2018 underground) (bid 2) Oct 2018 25 Oct 2018 25 Oct 2018 Nov 2018 25 Nov 2018 25 Nov 2018

Page | 61 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) No. Environmental Reports and preparer Reporting Period Prepared in/on Submitted in/on 24 YC-WN-2018004 Main water transmission pipelines - bid 1 Sept 2018 25 Sept 2018 25 Sept 2018 Oct 2018 25 Oct 2018 25 Oct 2018 Nov 2018 25 Nov 2018 25 Nov 2018 25 YC-WN-2018005 Main water transmission pipelines - bid 2 Sept 2018 25 Sept 2018 25 Sept 2018 Oct 2018 25 Oct 2018 25 Oct 2018 Nov 2018 25 Nov 2018 25 Nov 2018 26 YC-WN-2018014 Land fertilizing and consolidation Sept 2018 25 Sept 2018 25 Sept 2018 Oct 2018 25 Oct 2018 25 Oct 2018 Nov 2018 25 Nov 2018 25 Nov 2018 27 YC-WN-2018019 Operation road and loop road (bid 1) Sept 2018 25 Sept 2018 25 Sept 2018 Oct 2018 25 Oct 2018 25 Oct 2018 Nov 2018 25 Nov 2018 25 Nov 2018

Page | 62 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) 5 Conclusions and Recommendations

68. From the view of environmental and ecological protection, overall project implementation situation is good. Throughout the project implementation area, the environment condition is quite well, especially the ambient air quality is good. And there is no serious environmental pollution incidents, no pollutants put into the surrounding area, no large amounts of solid wastes from the construction site or improper handling operation, no obvious environmental deterioration in appearance.

69. Some monitoring forms submitted by project implementation agencies to the project management office are still not complete, especially some blank cells written by using monitoring data is not easy to measure and monitor. However, it does not seriously distorted and/or affect the monitoring results.

5.1 Key issues 70. It is important to maintain compliance throughout the entire project implementation including trial-operational stage. The aforementioned individual environmental consultant visited the project sites in November 2018; reviewed the EMP implementation status through 2014-2018 and found overall compliance with the updated EMP requirements; and advised that disturbance to original site ecology be minimized where possible and stringent construction site management be implemented to avoid any adverse impact to the Great Wall of Wuhudun; also reminded the PIOs of the potential environmental impacts from the associated facilities - vineyard and grape processing facilities (e.g. in Hongsipu)－ which have wastewater implications. The PIOs reported that wastewater collection and treatment facilities were under construction. The individual environmental consultant collect relevant information from the PIOs and document such compliance status in future EMRs to ADB. Besides, the PMO/PIOs confirmed that no environmental complaint or grievance has been received so far.

5.2 Suggestions 71. Project Management Office recheck all monitoring forms; urge subproject implementation agencies which has submitted incomplete monitoring form and monitoring personnel who were not complete their monitoring tasks responsibly to replenish blank and/or wrong cell. If the monitoring personnel of the implementation agency are not competent for monitoring duty, the PMO under assistance from the LIEC will take some technical trainings of capacity building for promoting the monitoring ability and standard of whole project monitoring team.

List of Appendices Appendix 1 Satellite maps and photos Appendix 2 Vegetation status in Ningxia(related to the Project Area) Appendix 3 Soil status in rural Ningxia (related to the Project Area) 88 Appendix 4 Climate in the Project Area Appendix 5 Environment Quality in the Project Area

Page | 63 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Appendix 1 Satellite maps and photos

Satellite maps -Qukou farm (new vineyard, 180 ha, [email protected],E105.840406), completed in 2014

9 May 2010 prior to project appraisal 12 Feb 2013 at implementation

10 Jul 2015 at component completion 2 May 2018 at operation Note: Based on Google Earth Pro 2019

Page | 64 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Satellite maps -Yuquanying farm (vineyard rehabilitated),133 ha completed in 2014 (centered@ N38.2663103, E105.99929,2977)

15 Sept. 2012 prior to project appraisal 5 Oct 2014 at implementation

10 Jul 2015 at component completion 28 Mar 2018 at operation Note: Based on Google Earth Pro 2019

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Satellite maps - Lianhu Part farm (vineyard rehabilitated):156.5 ha completed in 2014 ([email protected],E105.9815487)

12 Feb 2013 prior to project appraisal 22 Apr 2014 at implementation

10 Jul 2015 at component completion 23 Sept 2018 at operation Note: Based on Google Earth Pro 2019

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Satellite maps - Xiaojiayao farm of Hongsipu (new vineyard, 333.3 ha): completed in 2014 ( centered@ N37.3327495,E106.1473305)

2012 prior to project appraisal (not available) 13 Apr 2013 at implementation

7 Dec 2013 at component completion 29 May 2016 at operation Note: Based on Google Earth Pro 2019

Page | 67 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Site photos in Oct 2018 (taken by the LIEC)

Vineyard established

Existing reservoir Roads to be rehabilitated under ADB loan funds

Page | 68 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Satellite maps – Wangdatao village at Tongxin dates site 1 (The two sites’ total Chinese dates orchards (666.7 ha) had been completed using government funds in 2013, centered@ N36.9426269,E105.8182431)

5 Oct 2012 prior to project appraisal 8 Mar 2013 at implementation

24 Sept 2014 at component completion 28 Sept 2018 at operation Note: Based on Google Earth Pro 2019

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Satellite maps – Yujialiang village at Tongxin dates site 2 (The two sites’ total Chinese dates orchards (666.7 ha) had been completed using government funds in 2013, centered@ N36.9815346,E106.0184053)

8 Apr 2011 prior to project appraisal 8 Mar 2013 at implementation

24 Sept 2014 at component completion 28 Sept 2018 at operation Note: Based on Google Earth Pro 2019

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Satellite maps – Binggou (modern agriculture demonstration construction started in 2018, E106°34′3″~106°36′27″ / N38° 23′14″~38°25′58″)

30 Jul 2015 prior to project mid-term review 11 Mar 2018 at implementation, prior to construction

15 May 2018 during construction Note: Based on Google Earth Pro 2019

Page | 71 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Site photos in Oct 2018(taken by the LIEC)

Onsite project management office put into operation August 2018 Reservoir under construction

Administration center under construction Irrigation water transmission line under construction

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Satellite maps – Wuhudun (shelterbelt only, construction not yet started in 2018, E106°27′17″~106°28′8″ / N38°19′37″ ~38°21′15″)

10 Sept 2017 prior to project mid-term review 11 Mar 2018 at implementation, prior to construction

17 May 2018 during construction Note: Based on Google Earth Pro 2019

Page | 73 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Site photos in Oct 2018(taken by the LIEC)

Wuhudun site East to the Ming Dynasty’s Great wall

East to the Ming Dynasty’s Great wall with fence Land cover vegetation status

Page | 74 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Satellite maps – Ma’anshan (modern agriculture demonstration construction not yet started in 2018, E106°22′45″~106°24′24″ / N38°09′)

10 Sept 2017 prior to project mid-term review 11 Mar 2018 at implementation, prior to construction

17 May 2018 during construction Note: Based on Google Earth Pro 2019

Page | 75 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Site photos in Oct 2018(taken by the LIEC)

Onsite project management office Existing reservoir

Existing farmland reclaimed under other domestic project Existing landcover vegetation status

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Satellite maps – Tongxin (yellowhorn planting construction not yet started in 2018, E106°22′45″~106°24′24″ / N38°09′)

1 Mar 2017 prior to project mid-term review 15 Jan 2018 at implementation, prior to construction

28 Sept. 2018 , prior to construction Note: Based on Google Earth Pro 2019

Page | 77 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Site photos in Oct 2018(taken by the LIEC)

Existing reservoir Proposed site

Proposed site Surrounding farming status

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Appendix 2 Reference: Vegetation status in Ningxia (related to the Project Area)

Reference: Monitoring vegetation dynamics during the growing season in Ningxia based on MOD13Q1 data [ZHAO Zhuowen, ZHANG Lianpeng, LI Xing, et al. 2017. Monitoring vegetation dynamics during the growing season in Ningxia based on MOD13Q1 data[J]. Progress In Geography, 36 (6): 741- 752. ]

Abstract: In order to ascertain the dynamics of vegetation and its impacting factors in the period of 2000-2014, based on MOD13Q1, the DEM data, and the land use classification map, this study analyzed the characteristics of the spatiotemporal distribution and future trends of the administrative areas of Ningxia Autonomous Region at different altitudes and slopes, as well as with different types of vegetation, using the Sen + Mann-Kendall nonparametric test, the Hurst index, and other methods. Based on the center of gravity migration model and transition matrix, this study analyzed the temporal change of vegetation patterns from 2000 to 2014. The results are as follows: (1) NDVI values were high in the north and the south, but low in the central area, due to its arid condition; NDVI values were significantly positively correlated with elevation and slope. (2) The transition matrix of vegetation coverage shows that the percentage of area of higher vegetation grew from 17.29% in 2000 to 31.55% in 2014, which was mainly developed from lower vegetation coverage in the beginning of the period. (3) The center of gravity migration direction indicates that moderate and higher vegetation cover centers moved: the moderate vegetation cover center migrated toward the northeast by 129.49 km, and the higher vegetation cover center migrated toward the southeast by 89.49 km. (4) The trends of NDVI show that overall, NDVI of Ningxia improved from 2000 to 2014. The area where the values of NDVI significantly increased accounted for 59.63% of the total area, while the slightly improved area accounted for 31.72% of the total. The significantly improved area of woodland and paddy accounted for 71.50% and 70.80% of the total woodland and paddy areas. The significantly improved area of NDVI firstly increased and then decreased with the increase of elevation and slope. The area in the south with increased NDVI was larger than that in the north. (5) The trend of NDVI change indicates that vegetation restoration in Ningxia is sustained—89.24% of the vegetation-covered area continued to show an improving trend, while 5.7% continued to decrease, which was mainly in the Yellow River irrigated district. The areas in southern Ningxia where NDVI presented a positive sustained development was greater than that in the north.

Key maps:

Page | 79 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Fig.1 Land use classification map (a) and spatial distribution pattern of NDVI in Ningxia(b), 2000-2014

Fig.3 Change of NDVI for different land cover types during the growing season, 2000- 2014

Fig.4 Trend of vegetation change in Ningxia during 2000-2014(a), Hurst index of vegetation in Ningxia(b) Future trend of vegetation cover change in Ningxia (c)

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Yinchua

Yuquanyin g farm

Hongsip

Lianhu part

Qukou farm Fig.9 Distribution and variation of NDVI with different administrative areas in Ningxia, 2000-2014 Tongxin

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Appendix 3 Reference: Soil status in rural Ningxia (related to the Project Area)

Reference: Quality of Soil Environment in Ningxia Rural Areas and Assessment

MA Juan(Environmental Monitoring Center Station of Ningxia Hui Autonomous Region， Yinchuan，Ningxia 750002)

Abstract: Through soil survey and monitoring of 25 representative villages in Ningxia which involves planting ， breeding ， tourism ， ecology and SO on ， with Soil Environment Quality Standard(GBl5618-1995)as the evaluation basis ， soil environmental quality was evaluated．Among 125 soil monitoring sites，cadmium， mercury，arsenic，lead，chromium five project all reached the secondary standard， the comprehensive pollution index was less than 0．7．the soil pollution level was I belonging to cleanness safety level．the content was equivalent with background value of the element ， indicating that Ningxia rural soil environmental quality is in good condition，not subjected to heavy metal pollution，soil environmental quality in the rural area is safe．

Page | 82 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018)

Appendix 4 Reference: Climate in in Ningxia (related to the Project Area)

Reference paper: The Thirteen Five Year Plan to Address Climate Change in Ningxia Hui Autonomous Region(Revised)13-extracted Issued by Ningxia Hui Autonomous Region Development and Reform Commission, on September 30, 2018

Section 1 of Chapter 1: The impact of global climate change on Ningxia Hui Autonomous Region …In the context of global climate change, Ningxia is also experiencing quietly climate change, and the impact on the region's economic and social development are becoming increasingly evident. -Temperatures generally increased. Since 1961, the region's average temperature increased by 1.6 to 2.9 . Remarkably, merely from 2001 to 2015 the region's annual average temperature increased by 1.1 . From the geographical distribution, the most significant temperature rise℃ in irrigated areas, increased by 2.2 . Heating in central arid zone and southern mountainous areas ℃were 2.1 and 1.8 . In 2015, Yongning County has history of extreme temperature which reached 39.5 since℃ meteorological records were available. ℃ ℃ -Precipitation decreased significantly. Since 1961,℃ the region's precipitation decreased, and the north-south distribution is extremely uneven. The 50-years average annual precipitation fell by 28.6 mm, ie, an average reduction of 5.7 mm per 10 years; the average annual precipitation in the southern mountainous area is 484 mm and 292 mm for the central arid zone, when the irrigated area in the north is only 179 mm, which were reduced by 53.7 mm, 41.5 mm, 12.2 mm. -Increased sunshine hours. For over 50 years, the average annual sunshine were 2,711 hours, showing a slight increase in the overall trend. From space distribution, the north-south sunshine trends change differently, 50 hours of sunshine in northern mid- irrigated areas reduced by 47.5 hours, 41.5 hours reduced in the central arid zone, and southern mountainous area increased by 74.5 hours. -Increase the impact on agriculture. Climate change caused instability in crop yields, decreased quality, increased pests and diseases, increased agricultural production costs. Winter wheat moved north, wolfberry expanded south, grape varieties diversification grew and the proportion of late-maturing varieties gradually increased. Global warming makes the thermophilic crops such as corn, rice yields increased; and climate guaranteed rate of double cropping in the irrigated area improved. Hi cool wheat and potato crops have cut trend. At the same time, rising temperatures decreases air humidity, increases agricultural water consumption, so the water shortage is even more severe. -Frequent extreme weather events. Rising temperatures and less rainfall accompanied with frequent occurrence of extreme weather events. Over the past 50 years frequency of drought increased, spring drought and autumn drought in the southern mountain area have aggravated the trend. The frequency and involved areas have rising trend especially in spring, summer, autumn drought occurred after 2000, triggered a more urban and rural drinking water shortage, resulting in soil erosion of central and southern

13 http://www.nxdrc.gov.cn/info/1036/20354.htm

Page | 83 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) area, grassland degradation, increased the vulnerability of the ecological environment. Dust storms, frost, super wind, cold, freezing rain and snow, fog and haze-prone, have affected traffic, transport, power, tourism and other industries. -Increase in adverse effects on human health. Climate change, particularly high temperatures, leads to increased morbidity and mortality in the population. The threat of chronic disease deaths due to temperature increases, the incidence of the region’s infant hand-foot-mouth disease increased; so were elderly cardiovascular and cerebrovascular and respiratory systems, resulting in adverse effects on human health and life expectancy…

Section 2 of Chapter 1: Status of work in the Twelve Five Year Plan… - Carbon reduction achieved significant results.... a substantial increase in water use efficiency. Water consumption per unit of GDP has dropped by 39.3%. The cumulative in water consumption per unit of industrial added value has declined by 30.67%.... - Forests and other carbon sinks continued to increase. Relying on national key ecological forestry projects such as the three-north shelterbelt, restoring farmland to forest, natural forest protection, grazing prohibition, anti-desertification, wetland conservation, reforestation, afforestation and other ecological projects were in-depth implemented. The region's forest coverage rate increased from 11.9% in 2010 to 12.6% in 2015, the forest stock volume reached 8.24 million cubic meters, greening rate of urban built-up area more than 36%, wetlands area 3.10 million hectares…..

Section 3 of Chapter 2: Main Goals

By 2020, the main objective is to address climate change:... - Carbon sinks further enhanced. New afforestation area of 5 million hectares and forest stock volume reach 9.95 million cubic meters, forest coverage to 15.8%. - To further improve the efficiency of water use. Irrigation water effective utilization ratio to increase to 0.53, per yuan GDP water consumption decrease by 25% compared to 2015, water consumption per yuan industrial added value down by 18% compared with 2015.... key Indicators in the Thirteen Five Year Plan (Extracted) No. Indicators Unit 2015 2020 Remarks

Forest coverage rate % 12.63 15.8 Anticipatory Carbon sinks Ten thousand Forest stock volume 835 995 Anticipatory cubic meters Ten thousand yuan GDP water cubic meter/Ten 260 180 Binding consumption thousand yuan Agricultural irrigation water % 0.50 >0.53 Anticipatory Water effective utilization ratio resource Per yuan industrial added value management m3 44 37 Anticipatory of water Surface water at or better than % 66.7 73.3 Binding Class III Rehabilitated desertification and mu 250 450 Anticipatory desertified land area Ecological environment The number of days in urban air quality reaching Class II in % 74 > 78 Binding municipal level cities Note: the data in [] means the cumulative number of 5 years…

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Appendix 5 Reference: Environment Quality in Ningxia (related to the Project Area)14

1. Surface water. In 2017, monitoring results at six state-controlled sections of the Yellow River in Ningxia reached GradeⅡwhich is excellent quality, the overall water quality improved. The water quality of the 9 tributaries of the Yellow River was generally mildly polluted; the water quality of the 8 important lakes along the Yellow River was generally mildly polluted; ...; the water quality of the 13 main yellow-storage ditches was generally heavy.

Comparison of water quality classes in different sections of Ningxia section of the Yellow River Section name Section function Applicable Water Quality Water quality- 15 classes 2017 2016 year change Zhongwei Ningxia- Gansu provincial Class II Class II Class II No significant boundary changes Jingshawan Wuzhong City- Zhongwei Class II Class II Class II No significant City boundary changes Yesheng highway Wuzhong City- Yinchuan Class II Class II Class II No significant bridge City boundary changes Yingu highway Yellow River water quality Class II Class II Class II No significant bridge changes Pingluo Yellow Yinchuan City- Shizuishan Class III Class II Class III Has improved River Bridge City boundary Mahuanggou Ningxia- Inner Mongolia Class III Class II Class III Has improved provincial boundary

2. Ambient air quality. In 2017, the proportion of average fine air quality in five prefecture-level cities in the region was 76.4%, up 1.2 percentage points year-on-year; the average concentration of 6 air pollutants monitored was 3 ups and 3 drops, and the average concentration of inhalable particulate matter (PM10) increased by 2.9 year-on- year. The average concentration of fine particulate matter (PM2.5) decreased by 8.7 percentage points year-on-year; the average concentration of sulfur dioxide (SO2) decreased by 21.4 percentage points year-on-year; the average concentration of nitrogen dioxide (NO2) increased by 14.3 percentage points year-on-year; the average concentration of carbon monoxide (CO) year-on-year decline was 5.3 percentage points; the average concentration of ozone (O3) increased by 8.5 percentage points year-on- year. The main pollutants affecting the ambient air quality of the whole district (5 cities) are inhalable particulate matter, ozone, fine particulate matter and sulfur dioxide. The fine weather in Yinchuan City and Zhongwei City decreased by 15 days and 8 days respectively, and the fine weather in Shizuishan City, Wuzhong City and Guyuan City increased by 18 days, 12 days and 10 days respectively.

14 2017 Annual Environmental Statement in Ningxia, http://www.nxep.gov.cn/info/2796/101489.htm. The 2018 Annual Environmental Statement in Ningxia has not yet issued. 15 In China, water quality is broken into five categories described as ‘good’ (Grades I, II, and III) or ‘poor’ (Grades IV and V or V+, which cannot support drinking). Grades represent official water quality classifications based on China's Surface Water Environmental Quality Standard as reported by the Ministry of Environmental Protection of the People's Republic of China.

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2017 Environmental Air Quality Excellent Days Statistics units: day City Number of days Excellent days Percentage of Annual Class I Class II of effective number (Class II excellent change monitoring or better) days (%) Yinchuan 365 237 64.9 -15 9 228 Shizuishan 365 254 69.6 18 4 250 Wuzhong 365 292 80.0 12 28 264 Guyuan 365 330 90.4 10 41 289 Zhongwei 365 281 77.0 8 38 243 The whole 365 279 76.4 4 24 255 region Note: As the new standard of measurement for air quality, AQI is a quantitative description of the air quality index. The major pollutants involved in the analysis including fine particulate matter (PM2.5), inhalable particles (PM10), sulfur dioxide (SO2), nitrogen dioxide (NO2), ozone (O3), carbon monoxide (CO).According to “Technical Regulation on Ambient Air Quality Index (on trial)” (HJ633-2012), AQI is divided into six levels in total, with Level one being the best and Level six being the worst.

AQI Air Quality Health Implications 0–50 Excellent No air pollution. 51–100 Good Few hypersensitive individuals should reduce the time for outdoor activities. 101–150 Minor Slight irritations may occur, children, and those who with breathing or heart problems pollution should reduce outdoor exercise. Heavily Healthy people will be noticeably affected. People with breathing or heart problems will 201–300 Polluted lack exercise tolerance. Those patients, children and elders should remain indoors. Severely Even healthy people will lack endurance during activities. There may be strong 300+ Polluted irritations and symptoms. So all people should avoid outdoor activities.

3. Precipitation. In 2017, the region collected 204 precipitation samples, which PH distribution ranged 6.47-8.57, at a mean of 7.35, so the year did not appear the phenomenon of acid rain.

4. Dust weather. In 2017, due to the weather process such as the strong cold air entering the northwest (cold front transit), there were 7 sand and dust weather processes in the whole district. Among them, the secondary dust weather (Yangsha) and the third-grade sandstorm weather (sand storm) are three times: four grades of sand and dust weather (strong sandstorm). The five prefecture-level cities in the region are affected to varying degrees. Compared with the previous year, the first sandstorm

Page | 86 Ningxia PMO, Jan 2019 ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project Environmental Monitoring Report (For Period as of 31 December 2018) weather occurred 25 days earlier, and the frequency of occurrence decreased, but the pollution intensity and damage degree were enhanced.

5. Rural ambient air. The Ningxia National Regional (Rural) Ambient Air Quality Monitoring Station is located in Liangfanchang, Biandangou Town, Wuzhong City. In the year of 2017, the effective monitoring days of Liangfanchang's ambient air was 356 days. According to the “Environmental Air Quality Standards” (GB3095-2012), the number of days in which Liangliangchang's ambient air reached the standard (excellent) was 296 days, and the proportion of days reached was 83.1%. The proportion of mild, moderate, and severely polluted days accounted for 10.4% (37 days), 2.0% (7 days), and 4.5% (16 days) respectively. The main pollutants affecting air quality were PM10. NO2, as the primary pollutants accounted for 96.7% (58 days) and 3.3% (2 days).

6. Rural environmental quality. In 2017, 30 rural village environmental quality pilot villages were monitored, and the monitoring results showed that the overall environmental quality of rural areas remained stable. The proportion of ambient air quality compliance days (good days) in 30 pilot villages was 70.0%, the primary pollutants were PM10; the ambient air SO2 compliance rate was 100%, the N02 compliance rate was 99.3%, and the PM10 compliance rate was 86 7%. Affected by regional hydrogeological factors, monitoring items such as total hardness, manganese, sulfate, and fluoride in drinking water sources in some villages exceeded the standard. The water quality of surface water bodies around the pilot villages is between Class III and Class V, which can basically meet the irrigation water requirements of farmland. The soil pollution level of each pilot village is graded and is a clean (safe) level.

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