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Public Disclosure Authorized Appendix Ill

ENVIRONMENTAL IMPACT STATEMENT FOR THE QINBA MOUNTAINS POVERTY REDUCTION PROJECT

NINGXIA HUI AUTONOMOUSREGION Public Disclosure Authorized Public Disclosure Authorized

Ningxia Research Institute of Environmental Protection September 1996, Public Disclosure Authorized * Table of Contets 1. Preface 1.1 The Project Background . I -..-.... --. *----.(1) 1. 2 The Requirement for theAssessment .-- (2) 1. 3 The Category ofAssessment ...... (2) * 1. 4 Basis for the Report .-.-.-...---.. (2) 1. 6 Applicable National Standards ...... *-- -)(...... 4...... 1. 6 Basic Objcetive of Environmental Control and Protection ...... (4) 1. 7 Principles and Methcds of Assessment -.---. -... (4) 1. 8 Process of the Assessment Work ...... (5) * 1. 9 Brief Introduction of the Units and Personnels Participating in the Environmental Protection Impact Assessment (5)

2. Project Summnary . -...... I i.-.---.---... (8) 2. 1 The project Characteristics .. (8) 2. 2 The Objective of the Project ... (8) * 2. 3 The Deterrmination of the Project Areas. -...... (8) 2. 4 The Project ConstructionContents I'...... ''''''''''''''''''''''''''''''..'''''''.'t'''''''.(10) 2. 5 The project Technical Design .- (12) 2. 6 Progress of the Project Implementation.. (13) 2. 7 Investment Estimate . (13) e 2. 8 The project Organization and Management .. (13)

3. The General Situation of the Environmnentin the Project Area. .(15) 3. 1 Natural Environment .. (15) 3. 2 Natural Disasters ...... (16) * 3. 3 The Social and Economic Situation -...... X...... (16) 3. 4 The Development Condition and Resources Evaluation .. (18)

4. Analysis of Environmental Influence and the Countermeasures . (21) 4. 1 Analysis of the Project Influence on Natural Conditions, Social/Economic Development and Environment System as Well * as the Countermeasures . I...... (21) 4. 2 Analysis and Countermeasures of the Influence from Agricultural Development Component on the Environment...... - - ---....--. (23) 4. 3 Analysis of the Influence of Rural Enterprises Development on Environment . .. . (33) 4. 4 Analysis of the Influence from Infrastructure Construction Project on the Environment . .(47)

5. Participation of the Public ----..-..--..-..---...... (49) 5. 1 'The Purposes and Way of Survey ...... --.-...... (49) 5. 2 The Objects and Contents of the Survey ...... (49) 5. 3 Survey Results and its Analysis .---.--...... (50) * 5. 4 Survey Results and Comprehensive Assessment .(51)

6. The Analysis of the Profit and Lanssof Environ mentalEconomy ...... (54) 6. 1 The Principles of the Analysis ...... (54)

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6. 2 The Method of the Analysis ...... (54) 6. 3 The Project Investment. -54,(54)...... 6. 4 The Project Benefits...... -.... (55) 6. 5 The Investment of the Environmental Protection ...... (58) 6. 6 Conclusion ...... (58)

7. Analysis of Environrnental Risks ...... (59) 7. 1 EnvironnmentalRisks ...... (60) 7. 2 Countermeasures ...... (60)

8. Substitue Scheme . (61)

9. Environment Policies and Monitoring ...... "...... (63) 9. 1 Enviromnent Management ...... I...... (63) 9. 2 Organization of Environment of Monitoring ...... (63)

10. Conclusion and Recommendation ...... I...... (65) 10. 1 Feasibility Analysis of the Project Construction ...... (65) 10. 2 Conclusion ...... I ...... I...... (65) 10. 3 Recommendations .. (65)

Attached Tables. 1. Basic Date of the Project Area 2. Outline of the Project 3. Survey for the Public Participation

Attached Maps: The Activities In Qinba Mountanious Area Poverty Reduction Would Band Loan Ningxia Project Area In Coina The Soil Map Of Qinba Mountanious Area Poverty Reduction World Bank Loan Ningxia Project Area In China The Map Of Qinba Mountanious Area Poverty Reduction World Bank Loan Ningxia Project Area In Cl-ina .

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a.~~~~~~~~~~~~

. 1. Preface

1.1 The Project Backgrournd

Xiji, Haiyuan, Tongxin, Jingyuan, , Pengyang, Longde and Yanchi counties in Ningxia southern mountainous area are located at the transitional zone of arid and semi-arid zones of northwest of Chinma.The average annual rainfall in most part of the area is less than 400 mm. However, over 70% falls during July to September, the natural rainfall could not meet the basic demand of the crops growing. The drought fiequency is over 70% and the area is suffering from little precipitation and intensive evaporationi. The natural conditions are bad and the economic basis is weak. People are living in dire poverty. Now the population density had already been 54%/sq. krn, which was 2.7 timnes of the international critical umdicator used in the arid and semi-arid areas. The land is overloaded with population and the contradiction between people and natural environment is very big. The area is one of the poorest areas in our country.

* In 1983, the Central Government began to calTy out a special agricultural program and the.strategy of poverty ahleviation in the " Three West" area. Through over the ten years' development and execution of poverty alleviation, the passive situation of the agricultural production has been turned round initially and also the poverty situation has been eased up. The Government action has laid a foundation for the farmers in Southern Ningxia to alleviate poverty and bring about prosperity. However, as the production condition has not been improved completely in most parts of 8 counties, in addition, the natural calamities there are frequent and there are still about 700,000 people with income below 320 yuan. The proportion of the area and population in poverty are 5 8% and 44% of the Regional total. This is the only case in China.

The economic development in Ningxia is slow and the local financial income is low. It is difficult for Ningxia to support e those farmers to alleviate the poverty as fast as possible. In order to change the situation of these poor areas in southern Ningxia quickly and achieve the goals of the "National 87 poverty alleviation program" as scheduled, the State Council Poverty Alleviation Office, National Planning Commission and the Mimistry of Finance exchanged views with the World Bank and agreed to list Qinba Poverty Reduction project into the World Bank loan plan, and decided to select Xiji, Haiyuan, Tongxin, Jingyuan counties which are the poverty-striken area with more Hui nationality needed to be supported greatly in * southem Ningxia as the project area.

: X_

*%MapI-I Distribution of Povcrty -stricken Area of Ninigiia

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0 1.2 The Requiremenitfor the Assessment

According to the requirements of " the EnvironmentalProtection Law of the People's Republic of China" , " the Law of Water and Soil Conservation " and other documents issued by the Envirorcnental Protection Bureau of China, State Planning Coninission, Ministry of Finance and People's Bank of China, Ningxia QB Project Management office entrusted Ningxia Environmental Protection Research Institute with the work of the environmental impact assessment of the project. After that, the qualified expeits have been organizedto carry out the execution of the work.

1.3. The Category of Assessmenit

The overall environmental impact assessment of China Qinba Mountains Poverty ReductioniWorld Bank Loan Project has been detennined as " Category B " . InNingxia Project area, there are five components consisting of 67 subprojects. As the different environmental impacts created by different sub-projects, the category of enviromnental assessment are as follows through careful selection carried out by the vork team of the environmental assessment and decided by the Ningxia EnvironmentalProtection Bureau: A. The projects in Category B: (1). Agricultural developmenit,includilng food crops, cash crops, fruit trees and breeding. (2).Rural enterprises development, including the extension of refined starch factory, the extension of cashmere and wool factory and the extension of the flax factory. (3). Rural infrastructure, includingthe water drinking works both for farmers and animals and small-scale irrigation works etc. B. The projects in category C: (1). The monitoring of poverty and the project management.(2). The establishment ofthe project management organization.

1.4. Basis for the Report . 1.4.1. Constitution and Laws

(a). " lhe Constitution of the People's Republic of China" (b). " The Environmental Protection Law of The People's Republic of China" (c). " The Law of Prevention and Control of Air Pollution of the People's Republic of China" (d). " The Law of Prevention and Control of Water pollution of the People's Republic of China (e). " The Forestry Law of the People's Republic of Chia " .

(f). " The Grassland Law of the People's Republic of China" (g). " The Water Law of the People's Republic of China" (h). "The Law of Water and Soil Conservation of the People's Republic of China" (). " The Law of Conservation of Wildlife of the People's Republic of China"

1.4.2. Laws and Regulations

Five Laws and Regulations issued by the State Environmental Protection Bureau, the Environmental Protection Commission under the State Council and related Ministries are as follows: (a). "Administrative Measures for Environmental Protection of Construction Projects" issued by the Environmental Protection Commission in 1986. (b). "Several Pieces of Advice on Environment Management of Constriction Projects" issued by the State environmental Protection bureau in 1988. (c). "Regulations for Environmental Protection Design of ConstructionProjects" issued by the Environmental Protection Conrmission in 1987. (d). Several Pieces of Advice for Further Strengthening Management of Construction Projects issued by the State Enviromnental Protection Bureau in 1993. (d). "Notice for Improvement of Management of Enviromnental Impact Assessment of Construction Projects Financed by 2 .

(d). "Notice for Improvement of Management of Environmental Impact Assessment of Constructioni Projects Financed by Intemnational Financial Organizations" issued by the State Environmental Protection bureau in 1993.

* 1.4.3. The Technical Specifications

Eight Technical Specifications issued by the State Environmental Protection Bureau, the Academy of Environmental science of China and related Ministries are as followvs: (a). "Technical Guide Book on Environmental Inpact Assessment (HJ/T 2.1-2.3-93)" published by the State Environmental Protection Bureau in April,1994. (b). "Environmental Management of Construction Projects" worked out by the Development and Supervision Department of the State Environumental Protection Bureau in 1990. (c). "Technical Principles and Methods for Environmental Impact Assessment" worked out by the Development and * Supervision Department of the State Environmental Protection Bureau in February, 1992. (d). " Guidance of Environmontal Impact Assessment of Agriculture in China ( to be discussed)" worked out by the Development and Supervision Department of the State Environmental Protection Bureau and Environmental Research and Monitoring Institute of Ministry of Agriculture in May,1995.

(e). " Proposed Technical Specification for Ecological Impact Assessment of Natural Resources Development and Construction Projects (to be screened)" worked out by the Natural Protection Department of the State Environmerital Protection bureau in December,1995. (t). "A Data Collection of Environmental Impact Assessment of the World Bank Technical Document No,139, 140 and * 154" collected by the Development and Supervision Department of the State Environmental Protection bureau in October,1993. (g). "Teaching Material Series for training on Environmental Impact Assessment for the Technical Assist Project Financed by the Asian Development Bank(draft)" worked out by the Development and Supervision Department of the State Environmental Protection Bureau in February,1992. * (h). "Environmental Impact Assessment Program for China Qinba Mountains Poverty Reduction World Bank Loan Project" worked out by China Academy of Environmental Science in June,1996-

1.4.4. Basis of the Work . (a). " The Project Proposals for Ningxia Project Area of China Qinba Mountains Poverty Reduction World Bank Loan

Project" issued by the Leading Group of Poverty Reduction of Ningxia Hui Autonomous Region, Ningxia Planning Commission and Financial Bureau in January ,1996 . (b). " The Feasibility Study Report of Ningxia Project Area" prepared by Ningxia Project Management Office under * China Qnba Mountains Poverty reduction World Bank Loan Project. (c). "The Program of the Environmental Impact Assessment of Ningxia Project Area" (revision). (d). Entrustment Book for Environumental Impact Assessment of Ningxia Project" done by Ningxia Project management Office in February, 1996 (e). "Examination advice on 'Environmental Impact Assessment of Ningxia Project Area" prepared by Ningxia Environmental Protection Bureau on April 19, 1996. (f). Reply to the Standards Adopted for environmental Impact assessment of Ningxia Project Area "Put forward by Ningxia Environmental Protection Bureau on September 20,1996. (g). Reply to the Examination Advice on Environmental Impact Assessment for Each Provincial Project" Issued by the * State Enviromnental Protection Bureau on June 17,1996 (h). "Reply to the Examination Advice on Environmental Impact Assessment Program of China Qinva Mountains Poverty Reduction World Bank Loan Project" issued by the State Environmental Prodection Bureau On June 17,1996. 3 I.S. Applicable National Standards

(1). " Atmaspheric Environment Quality Standard" (GB3095 -82) (2). 'Ground water Environmlent Quality Standard" (GB383S -88) (3). "Underground Water Enviromnent Quality Standard" (GB/T14848 -93) (4). "Daily Drinking Water Hygienic Standard" (FB5794 -92) (5). "Fishery Water quality Standard" (GB1607-89) (6). "Iirigation Water Quality Standard" (GB5084 -92) (7). "Pennissive Highest Pollutant Concerntrationi in Atmosphere for Crop Protection" (GB137 -88) (8). "Comprehlensive Sewage Discharge Standard" (GB8978 -88) (9). "Proposed Standard for Industrial Three Wastes Discharge" (GBJ4 -73) (10). "Industrial FVuranceand Kliin Dust Discharge Standard " (GB9078 -88) (11). "Noise Standard for Industrial Enterprises" (GB9078 -88) (12). "Designed Hygienic Standard for Industrial Enterprises" (TJ36 -79) (13). "Agrochemicals Application Safety Standard" (GB4285 -89)

1.6. Basic Objective of Environmental Control and Prodection

(1). To construct an ordered and high-efficiency ecological system at the project sites in order to promote the compositive ecological system of society, economy and nature to benign circle and ensure sustainable development of the areas. (2). To improve present landscape and environmental quality in the project sites and reduce damage in the development of the areas. (3). To control the pestcides and fertilizer application to a rational limit to prevent soil and water from pollution. (4). To prevent white pollution produced by application of plastic mulch in agricultural production. (5). To strictly prohibit the establishment of those rural enterprises that would produce pollution in the project sites and adopt clean productive technology to ensure that new industrial pollution would be produced no longer with the construction of the project sites.

1.7. Principles and Methods of Assessunent

1. 7.1. Principles of Assessment

(1). The requirement of the world Bank for the environmental impact assessment must be met with revelant national regulations on environmental impact assessment are carried out. (2). The environmental impact assessment aims at the major influence on environment which would be produced by the project construction. (3). Relevant specialists, decision makers and beneficiaries were invited to take part in the assessment to ensure the assessment results to provide scientific bases for the project construction. . 1.7.2. Methods of Assessment

The methods of assessment mainly depends on existing data and the on-the- spot survey and detection. On the basis of on- the-spot survey, feasible reports on similar areas, the macro environmental analysis and assessment were made in a descriptive, qualitative or quantitative way.

1.7.3. Procedure of the Assessment Work 4 . .

It is given in the flow chart.

1.8. Process of the Assessment Work

On Janlaryl3,1996, with the recommendation of Ningxia EnvironmentalProtection Bureau, Ningxia Project Management Office under China Qinba Mountains Poveity Reduction World Bank Loan Project made a contact with Ningxia Institute of * Environmental Protection and provided "Proposal for Ningxia Project Area of China Qinba Mountains Poverty Reduction World Bank Loan Project" and "Report on Environmental Inpact on Yunnan Project Area of China Southwest Poverty Reduction World Bank Loan Project" (brief version) for the departments concerned and decided that Ningxia Institute of Environmental Protection would undertake the enviromnental impact assessment of the project and Ningxia Agricultural Environmental Protection Monitoring Station, Ningxia Water Resources and Hydroelectric Survey and Design Institute and Ningxia Agricultural Survey and Design Institute would participate in the work. The departments participating in the environmental impact assessment work began to familiarize with the project.

On February 2, Ningxia Project Management Office fonnally entrusted Ningxia tnstitute of Enviromnental Protection with the environmental impact assessment on the project.

On March 28, the Poverty Reduction Project Management Office of the State held a coordination and pre-examination meeting on Ningxia project area of Qinba Project in Ningxia. The progress of the enviromunentalimpact assessment work was determined at the meeting. The meeting participants went to Xiji to made an investigationto typical fanner households -* the following day.

On Anril 17,chaired by Ningxia EnvirotunentalProtection Bureau, the related departments and specialists invited assessed and examined the working program of enviromnental imnpactassessment on the project. The departments attenting the meeting includeed NinigxiaPlanning Commnission, Ningxia Academyof Agriculture and Forestry Sciences, Institute of Soil and Fertilizer, Ningxia Science and Technology Commission and Ningxia water Resources Bureau. The working program was in principle and would be further improved and added as a basis of drawing up the report on environmental impact assessmrnt.

* On April 27, the World Bank Project technical preparation mission made a field visit to Ningxia and Mr. Zhang Chonghua, the official from the World Bank put fosvard a guiding advice on the scope and focus of the environmental impact assessment on NimgxiaProject area.

On June 6, the units participating in the enviromunentalimpact assessment completed the working program of enviroiunental x assessment (version). On Junet7, the working program was examined and approved by the State EnvironmelntalProtection BureauLNingxia Institute of Envirounental Protection finished the repjort on enviromnental impact assessment(draft)with hard Nvork.

* 1.9. Brief Introdutctioiiof the Units and Personuels Participating in the Environmeutal Protection Impact Assessment

1.9.1. Brief Introduction of the Assessment Units Ningxia Institute of EnviromunentalProtection has acquired the first -class certificate for enviroinmentalimpact assessment * issued by the State environmental Protection Bureau (the certificate No. 0937) and established special organization for environmuentalimnpact assessment ------the Office of EnviromntiientalEngineering Assessment. The office was set up in 1986, tip to date, the office has 13 professional and nionl-professionialstaff, including7 senior engineers and 5 engineers, most of 5 them have received training on entvironmental impact assessmenit provided by the State Environmental Protection Bureau and two of them have received the training on environmental assessment of the assisted projects financed by the Woild Bank or the Asian Developmenit Bank.

Accept ocntrustment .

Co. allectionofSurveyofrnt of Mnwsregultions, i Ask for advice from Data collection, environmentalSitat calculation survey protection ~~~~~~~~~~departments.

l artw up environrkental impact assessment working prograt in

| Submit to Construction Unit |< l 6 , I . |Submit to t=vionrmental |ueigo environmental| |protection departes | | iTrnpactassessment program l

l | ~~~~Revisionof envirornmental| ; j ~~~impactassessmenlt program l Review and approval of the environrnental imipact assessmentprograrnam

. ~~~~~~~~~~Signingof contract

CollctioOf at,] Survey of presen NMonitoringof presn Forecast and . Collectionof data ~situatio situation calculation

|Work out and review specia topic reports|

- |~~~~~Prepareenvironrnental impact statement(EIS)|

t 0 ~~~~~~SacreningEITS|

Submit to envirounmcntal| l protection departments l l Revision of EISl

| Reply to, E1 End

Filow Chart 1-2 Working Procedure of Environrnental Impact Assessment

6 The Institute has finished over 30 environmental impact assessments and has the experience to undertake environmental * assessment for large-scale pi oject constuction. Theitems maily include: (1). Enlvironmental impact assessment for the First -phase Pumping Irrigation Project for Helping the Poor. (2). Enviroiunental itnpact assessment for Yinbei Low and -Mfiddle yielding Farmland Transfonration Project etc.

1.9.2. A Brief Introduction of the Major Participants in the Compilation of the Report on Environmental lnpact Assessment for the Project

Brief Introduction of Staff Members Participating

in Environmental Impact Assessment of Ningxia Project Area

* Nuaenc Post Tec.-ical title Spociality Task Unit

. ~~~~~~~~~~~~~~~~~~~~Nmgi2&joInstitute of Enlimuixmtlzet Ai Xianyusn 1Division chief Senior cnginecr {amcinistry Tclhnical examniner Nitin

Sun Shiwen Dcputy division Senior engineer nt Pcrson in ch2argcof Ningxia Isticute of Environmental cltief cnicrng the pro cc Protection

Hu* Jioqing Officc dircetor Senior cnginccr Environmental Major report Ningxia Institute of Environrnental .- to liNingOffice director enior engineer cngincering . coMpler ProtectiOIl Officevicc . Majorreport Ning,caInstitute of Environmenta l)csngYunfectg director engnecr EcologY compiler Protoction

WangMu NVang Mu Engineer TrsmsertDesert control ~Majoro~ompilerreport [ProtectionNingxtaInstitute of Environmental

JN!ngxia Agro. nronl Yin Yunxiang Station chief Professor Agritci'turc Report participant Protecton Monitoring Sation

Environmnental Ninigxia Water Conservancy and WVangXinjun engineer enigineering Rcport participant Tnstituite,Hydi_,x% ric Survey -ela sign

Gao Jijun . Engineer Hydrogeology Report pauricipant NingxJa institutc of Er.vironmental 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 P~~~~~rotectiotn WVang . Soll-agro. . Ningxla Agriculturel Survey and Quanxiang Engineer chemnistry Report Parcpat i titut

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7 2. Project Summniary . 2.1. The Project Characteristics

2.1.1 The Project Name

China Qinba Moruntains Poverty Reduction World Bank Loan Project

2.1.2 lle Project Characteristics

The project objectives are a). severely to carry out constrmction of water conservancy works, b). To realize fill arrangemerits in agriculture, forestry and animal husbandry and develop them in an all-round way, c). To improve and complete infrastructure and develop the processing industry of on-farrn and sideline products, d). To establish the complete system of technical services, scientific research and monitoring etc. The project is an integrate agricultural development one.

2.2 The Objective of the Project

2.2.1. The Overall Objective of the Project

Thc objective of the project is to alleviate the poverty and crcate a permanent income resource for the farmers through the comprehensive development of agriculture, forestry and animnal husbandry and the establishment of the scientific and teclnical system so as to improve the development of the social economy in the project counties.

2.2.2. The Concrete Objectives

The project would realize the following objectives in the six years of the project implementation including a) Income: According to 1990 fixed price, the annual average per capita net income among 44,814 households would reach more than 500 yuan. The annual average per capita net income below 400 yuan among the households that have adequate number of able -bodied workers would not exceed 4,033 ones. b). Improving farmland: The basic farmland per capita would be 2 mu. c). Extending practical skills: In the project area, one person in each faniily among 92% of the households must grasp at least one of the rural practical skill except crops planting. d ). Providing infrastructure: In the project areas, the project would solve the problem of drinking water both for farmers and aiiinials in over 80% of the administrative villages. Additional irrigation land per household would reach more than 1 mu.

2.3 The Determination of the Project Areas.

2.3.1 The Selection Criteria of the Project Areas.

(a). The project areas must be the major poverty-stricken counties listed in the National 87 Poverty alleviation program. (b). The project areas must be those situated in shady and moist, high and cold, arid and suffering from the harsh natural conditions. The areas must be most difficult and need to be suppoit urgently inpoverty alleviation.

8 0 S1~~~dIOrtf nt,adctslotn ot Nint =~ ' -='

* . MuMldailty C-lunty twn Tonoobip i (p eortoc al) (ofty) (no.) (wo,) in: ......

Yin-haa dowo-oo- 3 - -0_ YinnhoarsobOb 2 9 ) Yiochut0o YoM,Ino0flO 2 7

-39' SoiohraooiTy 3 _ 1 7 Pilnonton-ty 9 12

tt ay aI 12 _ 32DQEih 13 }rv=7i/lrS

zt-wPt ttorno-u ty 3 14 O'oaoa prafeono Liono notoy 5 9 n

T-SAoi, -ooy 3 11

* Zha t oty - 24 - | Hanonoy 4 23 i'/=*O

GuytntsLtecle ;Ji -tuti 2 24 M- OOL9denoo-ty 4 20

* _s -b 2 17 . ____

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/o // ol° /sprojet townhips (61 projtct viUage io

30.O~O,Y)Dto9000 nod POhoa,,nturoo . Z / / /4/ / )/ * Yanriglu,Yaosbari, s ian iaczh-ang, WWangt- h Dti 1,Ytngnungrtirdtitfunugb liali>~~~uanMpJiga_2hu_31g,itd| Xiahi-3hui.

9 project townships (48 project vilages)in - * , i. e. ,Shagou, Huosxhizhai, Bihn,Hongyao, Tianping, Sanhe, .S. > i7 x 9 tL Xinping,Yjtan and Pingfeng ;.°|\--Q<\o.--3i

Legend to ot/Xt/4 i6- g tX( t >hProvince Capital H-.G ndnttiO

* PrefectuTal-levei dities ' 0-: erYt *Counties . ( ; 'Ningxia AdniinistrativeDivision; City s People' s Government location L ! Towsbips, viages 0 00 km

* , \ <- ! ;

Map 2-I Distribution of Ningxia Project Area

9 * ., (c). The project areas should be relatively concentrated in certain regions with those scattered pieces of land together so that the implementation of the project could be connected with the regional economic development and be suitable for arrangement and construction of the infrastructure in these areas. (d). The administrative village would be taken as the basic project construction Lmitin the project sites so that the project fimds could be relatively concentrated on the project construction and also ensure per capita investment intensity. (e). Based on the calculation of the fixed price in 1990, the farmer households with annual average per capita net income below 320 yuan would be assisted by the project.

2.3.2 The Coverage ofthe Project Area

According to the selection criteria of the project area, Ningxia project area covers 9 townships in Xiji county, i.e., Shagou, Huoshizhai, Baicheng, Hongyao, Tianping, Sanhe, Xinping, Xitan and Pingfeng, 9 townships in , i.e Shuanghe, Xutao. Haochuman,Zhenqi, Luochuan, Lijtn, Jiucai, Yangming and Guanzlhuang, 8 townships in Tongxin couwty, i.e., Yuwang, Zlaigjiayuan. Yanglu, Yaoshan, Tianjialaoihuang, wangtuan, Majiagaozlhuan and Xialiushlui, and 5 townships in Jingyuan coumty, i.e., Ximnin, Dongxia, Yuanzi, Huanghua and Huitai 33 5 administrative villages under the jurisdiction of 31 towvnships mentioned above have a population of 407,780. In order to guarantee per capita investment intensity, the project would focus its coverage over 200 poorest administrative villages with 44,814 farmer households or 235,597 farmers.

The distribution of project toNvnships and villages is given in Map 2-1 and table 2-1

Population of the Ningxia Project Area Table 2-1 project couinties townships villages houiseholds population Xiji 9 48 10886 62860 Haiyuan 9 50 12804 67977 Tongxin 8 61 13450 67167 Jingyttan 5 41 7674 37593 total 31 200 44814 235597

2.4. The Project Construction Contents

According to the basic train of thoughts and the plan of the overall plarn design, the construction contents of the project in Ningxia have been determined after screening, selecting and adjusting from below to above for many times. The project has 5 main components including 67 sub-projects in Ningxia project areas.

2.4.1 Agriculture Development Component

.- Crops cultivation

(1) Land development: The project would solve the main problems which limited the agricultural development through the improvement of low and nmiddle-yielding farmland, the construction of the terraced land and the establishbment of the infrastructure. At the same time, the project would enhance the retentive capability of water, soil and manure of the farmland and allocate the resources of water, heat and land rationally and lay a foundation for the crops cultivation. About 9.770 ha of land would be improved.

10 . .

(2). Grain crops: During six years' construction, the project would develop 18,226 ha. of crops area, in which, wheat, mulch corn, virus- * free potato and legume would be planted.

(3). Cash crops: About 292S ha. of cash crops including linsced, mulch watermelon and Chinese onion would be grown in Xiji and Tongxin counties.

B. Livestock raising:

About 17,797 heads of cows, 95,445 heads of sheep and 7,730 heads of pigs would be raised in four project counties and * Also 2,782 ha. of grassland would be planted.

By making full use of resources of forage provided by planting, the straw of crops would be converted into animal products. It can not only meet the increasing demands of society, but also increase meat supply and provide sufficient raw material for animal products proessing. It can also create a permanent income source for farmers and increase capital accumulation, extend investment intensity in planting. Meanwhile, it can provide sufficient organic fertilizer for food crops cultivation but also reduce the pollution to the environment. It will generate organic content of soils and soil fertility, and also keep balance of soil and manure, bring the production superiority into full play.

C. Forestry:

About 716 ha. of timber forest and fruit trees, i.e. apricot, apple and date trees and other trees would be planted in Haiyuan and Tongxin counties and 986 ha. of forest for water and soil conservation would be planted in Xiji, Haiyuan and Tongxm counties, also 3 00 ha. of conifer forest would be planted in Jingyuan couity.

D. Scientific and Teclulical Service:

The scientific and technical service includes technical extension and training, also the support service.

2.4.2 The Rural Enterprises Development Component

The selection of the rural enterprises is carried out strictly according to the demands of the State Project Management Office and the related articles in the proposal of Qinba Mountains Poverty Reduction Project prepared by the World Bank. 4 processing enlterprises are detennmied at last, i.e. the extension of refined starch factory with the production capacity of 5,000 tons, the extension of flax factory with tle production capacity of 600 tons and the extension of cashmere factory with the production capacity of 320,000 sq. m in Xiji county and the extension of carpet factory with the production capacity of 20,000 sq. m in Haivuan county.

* 2.4.3. Infrastsucture.

(a). The drinking water works both for farmers and animnals: Tne Project would construct 1,237 water cellars both for farmers and animals and 3 water driinking works in Xiji and Jingyuan counties. After the completion of the project, the * project would solve the water drinking problem of 18,504 farmers.

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0 (b). Small-scale irrigation works: About 2,000 micro-irrigation wells, 15 pumnping wells, 21,566 micro-irrigation water ccllars would be constructed in Xlji, Haiyuan and Tongxin counties and 28.4 ha of river channcl imnprovement would be carnied out in Jingyuan county. (c). The constructioni of teiraced faniland: About 7,916 ha of terTaced farmland would be constructed in Xiji. Haivuan and Jingyuan counties.

Picture 2-2 Terranc~ed Field in the Project Area 2.4.4. Monitorinig of Poverty and Project Manageinent.

TIhe mnonitoring iniclude the poverty monitoring and the project mnanagemnent monitoring and monitoring of regionial0 inistitution building., the vehicles, equipment, training anid teclinical assistance would be needed.

2.4.5. TinstitutiontBuildinig

To establishi an effective anid comprehenisive project mnanageinent office for the imtplemnentation of the project Thle investmenit would be made in the purchase of the office buildinig, office facilities and vehicles and also carrying out the scientific research etc.

2.5. The project technical design

The selection of the project technical designi would be based oni the priniciples as follows: The first one is the technical designi of the agriculture development, according to the capability of the farmiers, the advanced practic-al production technology would be adopted by every means and at the sam-e time, the fine varieties anid better pla-ntinigmethiods would be extenided greatly. The second onie is that the advanced technology and equipmtent both from domnestic and abroad would be folly used in tie rnaral enter-prises so that the production efficiency and the comprehiensive betnefits could be enhaniced. The third one is that the teclimical designi of the nioni-productive projects would be carried out in accordanice with the realizationi of the project objectives and the actual demands of the povesty-stricken farmnerhousehiolds. The last one is that the emnphasis instist be.placed oii the work of th-e techniical personniel and the farmiiers training in the technical design of all sub-projects. Based oni the capability of the farmners, all technical designi would be easy to operate and usefulI for thAeirproductioni activities.

The characteristics of the farmers' deiglow quality acodngtoteo heagiulur anid th-e skill evlometinapbiiy product ioni f isaveh fmlr, beeni considered headace fully inpatialpodcto the selection of the project technical design. The arrangemic t of agriculture would be carried out according to the demeands of low productionA techinology aid miore plting experiences of the fainers and extensive sub-projects in ianagesnent. As the special deininids of the processingg industries, some processing industries would be areraneud in rIe tovaiships and suburbs witli better conditions of education, co hnwication, water anld electricity supply and telecommntication etc. Al those processimngindstries would be the one with density in resources aiid labor forceilie technical skill of those industries is advanced but easy to be grasped.t he technical design is feasible because it tallies with the actual conditions.

1 2 2.6 Progress of the Project Impleimientationi

The project duration is 6 years, The forest and orchard are planned for the first three years as it requires a long prodluction period and the rural enterprises would be arranged in the mziddle and later stages. and for others, they are arranged in a balance manner. The characteristics of those stub-projects would be considered fully in the arTangement of the sub- projects.

2.7. Investmenit Estimnate

The total investment for the project is 298.8 million yuan, among which direct cost is 226.57954 million yuan, the basic cost is 229.84515 niillion yuan, the price and physical contingencies are 68.95385 million yuani, The proportion of the investment of those sub-projects is as follows: The investment of agricultisre development accoLuntsfor 63.71% of the total;

* - Tha investment of rural enterprises development accounts for 8.01% of the total; The investment in infiastructiure'accotmts for 24.39% of the total, the investment of the poverty and project monitoring accounts for 1.91% of the total, the investment of institution building accounts for 1.98% of the total.

The proportion of the annual investment is as follows: * The investmeslt for the fu-st year accounts for 15.63% of the total; for the second year accotunts for 20.27%; for the third year 19.74% ;the fousrth year 19.76%; the fifth year 14.77% and the sixth year accoumts for 9.83%.

2.8. The Project Organization and Management

The project organization and management will play a decisive role for the implementation of such a special, complicated, comprehensive and long-term project. To certain extent, the realization of the project objectives relys on the project inistitutional construction and management capability. Adhering to the principles of rationalization, coordination and high efficiency, the organization setting up and the determination of their functions of responsibilities must be able to satisfy the 0 requirements of project planning, fmancial management, material management, technical training, monitoring, etc. The well-established organizations and qualified staff together with effective regulations can make tip a project management mechanism. Ningxia project organization and management is given in chart 2-3

0

13

. | ~~~RegionalPoverty Reduictiori Project Leading Group

Regional Specialists Consulting Regional Project Management Regional Tecdnical Service |Agency Offi ce gT Group

Project Monitoring Division Cuty Project Leading Group

County Specialists County Project Management County Technical Service Consulting Agency Office Group

Project Monitoring Section

Township Project Leading Group

Project Monitoring Station Stationnty Project Management County Technical Serice Grou

Villagers Committee

Village Monitoring Group Village Project Execution Group

Sample Household Monitoring Farmer Households Organization| monstTation FaTmer Household Site

Subproject

Chart 2-3 Organization for Project Management

14 . 3. The General Situationi of the Environuient in the Project Area.

* 3.1. Natuiral Environmlent

The location of 4 project coiuties is within 105°17' -- 106039' east longitude, and 35°14'-- 37013'' north latitude with the total area 7,107.28 Km2 . The Liupan Mountain ( an elevation of 2,931 m) stretches from south to noith and is joined with

the Yeliang Mountain ( an elevation of 2,632 m), Nanhua Moumtain ( an elevation of 2,954 m ) and Xihua Mountain (an elevation of 2,703 m ). The area is almost of mountains with steep slopes, valleys and undulating ground everywhere and the topographical features there is quite bad. Geographical location of Ningxia project area is given in attached map 1.

The greater part of the project areas is situated in the loess plateau and in the region of continental monsoon climate. It is * located at the transitional zone of arid and semi-arid zones of northwest of China with its topography raising from the north to the south. The rainfall decrease gradually from south to north while the evaporation and sun-shine time increase from south to north. The soil is primarily soft loess, mixed with darlk and brown ealth, loaml and sierozem. Average temperature in 40 years is 7 'C, the highest temperature is 38 'C and the lowest one is -23'C. The accumulated temperature cover 10 'C is 2,485 'C and the fiost-free period is 150 days. The rainfall is 434 nuni but the evaporation is * 1,884 nunl. the highest height is 2,955 m and the lowest one is 1,260 m and thne average one is 1.888 m. With the isophet of 400 mm rainfall having a slant pass across Ningxia from the northeast to southwest, the project area is clearly divided into two different natural areas.

,* (1). The high, cold, shady and moist area: It is located in earthen and stony hilly area which is at the eastern foot of Liupan Moumtain, with 5 towns of Jingyuan Cotmty included. The elevation level reaches to 2,275m with its relative height ranging between 800--1500m. The annual rainfall is 650 mm with its guarantee rate of above 500 mun reaching S5%, and its arid degree is around 1 . The accumulated temperature over 10 C is 1900 to 2000 with the average daily temperature in the warmest month reaching 17.4C, and -7°C in the coldest month. The annual sumshine time is about 2,237 hours and the * frost-free period is 132 days. The area is suitable for meat cattle and sheep raising.

(2) Semi-arid Project Area, under which two types are further divided:

a). Warm and Cool Semi-arid Area

The project area is located between mountainous and loess hilly areas which covers 9 townships of Xiji County and 4 townships of Haiyuan County. Within the territory, Yelling Mountain is 2,632m above sea level, with the elevation of other mountains ranging 1900--2300m and their relative height between 100--300m. The topographical conditions varies sharply * with the ditches, gullies and ridges crisscrossed all over. The ridges are very steep and the depth of the gullies varies between 80--300m. 'the guarantee rate for the annual rainfall over 400 mm is only 60%, the arid degree is around 1.4--2.0. The accumulated temperature over 10 C is between 1700-- 2500VC, with the average daily temperature in the warmest month reaching 17.8 C, and -9.2'C in the coldest month. The annual sunshine time is about 2,300 hours and the frost-free period is 150 days. -This area is suitable for raising cattle, pig and sheep.

B). Windy and Sandy Semi-arid Area

The project area is on a chain of undulating loess hills which covers altogether 13 townships, 5 townships of Haiyuan

* County, such as Shuanghe, Xutao, Songehuan, Zhengqi and Luochuan and 8 townships of . The general elevation is ranging 1500--1800m with the relative height between 30--lOOm. The landformn is crisscrossed with ditches,

15

. gullies and dunes, with its slope of 10--20 degrees. The annual rainfall ranges between 200--300 mm . The annual stunshine timne is about 3,000 hours and the frost-free period is 165 days.

The differences of geographical location and topography of some regions in the project area result in veoy differences in climate. The major climate conditions in the project area is givcn in table 3-1.

Nfeteorological Data of Ningxia Project Area

Item Cold & humid area warm&cold Windy & sandy semi-arid arid area area

Arnual precipitation (mm) 650 430 370 Annual evapotranspiration 1200 1450 2300 Arid degree 1.02 1.50 3.34 Quarantee rate of > 500smn annual rainfall (%) 80 20 0 Quarantee rate of > 400mm annual rainfall (%) 100 60 10 Quarantee rate of > 300mm annual rainfall(%) 100 90 30 Average temperature in the hottest month( C 17.4 17.8 22.7 Average temperatue in the coldest month(C -7.0 -9.2 -8.5 Annual average tem_perature(C ) 5.8 5.3 8.4 > 10 accumulative temperature( c) 1900 2051 .3144 Annual sunshine timne( hour) 2242 2325 3054 Frost-free period (day) 160 128 182

The average annual temperature in the project area increase from south to north and the change is between 5 'C 0 and 9 'C. The differences between warm and cold, years and days are great. The Tainfall decrease from north to south and the change is between 650 mm and 200 mm. The change ofthe rainfall between time , season and year is quite big and the guarantee of the rainfall is low. the arid degree increases from south to north gradually and the change is between 1 and 3.4. The annual sunshine time increase from south to north and the change is between 1900 and 3000 hours. The difference is quite obvious. The evaporation is very strong and the winter time is long and cold but the surmmer time is short and hot with less snow and rain. this is the characteristics of the area.

3.2 Natural Disasters The natural environment in the project areas is bad and the water and soil loss is serious. The development of production is hindered greatly. The disasters of drought, hail, storn, flood and freezing are the main factors limiting the agricultural development. The drought, in particular, create the grcat disaster for the agriculture production because it is frequent there in Spring -- the sowing season and it effects the crops growing greatly. Though the rainfall in the project areas is over 400 mnn, but it concentrates in the Autwun. So the flood in Autumn occurs frequently and the water and soil loss is serious, the grain production, naturally, reduces greatly . The heads of gulleies is stretching rapidly. The arable land is eroded and the fertility of soil becomes sharply weak and natural environment is gradually deteriorating.

3.3 The Social and Economic Situation . The social economy in this project area used to take agriculture as its priority, with the nrual management sticking to the traditional farming methods and animals raising. The grain production is low and smstable as the limitation of the natural

16 . conditions and also the low miput. The tovwinslhipenterprises developed slowly, and characterized as narrow scope of industries, inadequate employment, sirnple economic structure and low level of production.

.6~~~~~~~~~~~~~

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Picture 3-] The Landforms of Some Regions in the Project area

(1).In the project area, there are 74,875 fanning households, with the farming population of 402,394, and labor force * 18g0,832. The project covers 44, 14 farmers' households with the farming population of 235,597 (in which Hui nationalities are 181,215, accounting for 76.92%), the labor forces 101,090 and the surplus labor reaching 35,384.

(2).The social output value is 2,11.3421 million yuan, vith the agriculture output 133.707 million yuan, in which the agriculture is 82.432 million yuan, forest 3.343 million yuan, animnal husbandry 26.05 million yuan; the output of township enterprises is 55.8393 million, in which the industrial output of townships and villages reaching 16.1709 million.

(3) hi the project areas,. the arable land is 131,232.87 ha, in which the farnland is 24604.40.ha .The farmland per capita * : averages 0.91 mu 12,914 tons of chemical fertilizer is used with 98.4 Kg per hectare.

(4)There are altogether 20 reservoirs of different scales, 67 ponds and damns, 26 pumpinig stations, 147 motor-pumped wells, 1,461 easthen wells, 27 potable water supplying sites for human and animals, 75,097 water cellars in the project area.

* (5).In the project areas, the sownI area is 98,797 ha, producing 59,801 tons of grain with the average production of 605.3 kg per hectare anid 148.6 kg per capita, 80.3% of its population have less than 160 kg of grain.

(6).sl the project areas, the area of the economic forest is 573.6 ha. Tihe area of potentially plantilg trees is 41673.2 ha.,

* among which the area ofthe forest land is 32645.28 ha and average hectare per capita is 0.08.

(7).The livestock in the project area is 96,681, there are also 253,830 sheep, 23671 pigs and 180980 chickens in the project areas and the total meat production 5041.92 tons and 12.5 kg per capita. The area of grassland is 299998.91 ha, among which the area of grassland to be used is 288914.91 ha. and the average hectare per capita is 0.72. The total forage grass * production is 637368.4 tons.

17 . (8).The annual average net income per capita among the farmers is 267 yuan and 87.9% of the population in the project areas receive less than 320 yuan, according to 1990 fixed price

(9).There are 31 middle schools with 6,808 students in enrollment, and 384 middle school teachers; 800 primnaryschools, 52,458 pupils. The enrollment ratefor school-year-age children is 85.4%, in that the enrollmenitrate for girls is 75-3%, with only 49.6% of them finished schooling. The illiterate rat for adults is as high as 38.03%.

(10).There are 31 township-level hospitals, 179 professional rural doctors, 227 clinic personnel, 92 hospital beds with each thousand people owning 0-44 medical personnel and 0.22 hospital beds. About 33 village-level clinics would be covered by the project.

(11).There are also 101 science and technology service stations of 488 professionals in the fields of agriculture, forest, animal husbandry and others distributed over the project area.

(12).Thirty one townships and villages are accessible to electricity and roads. 231 admninistrativevillages are accessible to roads, accounting for 69% of the total administrative villages.

3.4 The Development Condition and Resources Evaluation

3.4.1 The Development Condition:

(1). The project area is rich in land, sunshine and heat resources. In the project area, there are various types of soil which has widely adaptability and great potentiality to develop. The cultivated land amounts to 131,232.87 ha. The shares of cultivated land of 0.91 mu per rural resident and 4.89 mu. per farmer are above both the national and Ningxia average. 24,604,4haof basic farmland have been constructed.These lay a great potential for the development of crop cultivation.

(2). Crop cultivation in the project area has a long history. The multiple crops such as potatoes, peas, broad beans, hyacinth 9 beans, buckwheat etc. are well merchandised and can serve as raw materials for processing industries. The sowing area is 98,797 ha with the grain production of 59,801 tons. Average production per ha is 6053 kg and average grain share per capita is 150 kg and average grain share per capita of over 80.3% of farmers is less than 160 kg.

(3).The-project area is one ofthe main production bases of oil-bearing crops in Ningxia. The cultivation of oil-bearing crops has already reached a remarkable scale.

(4).Vast grasslanidand rich resources can provide a big quantity of forage. Some local livestock are of good varieties. The draught livestock can meet the need for fanning. Now there are bout 96,681 big animals and 253,830 sheep in the project areas and average meat share per capita is 13 kg.

(5)-The area of forestry is about 32,645.28 ha in the project area, in xwlichthe area of orchards is about 573.6 ha . The output of dry and fresh fi-uitsis 390.8 tons.

(6).The project area is rich in plant resources. There grow quite some medicinal herbs, nectariferous plants and fabric plants. For example,, liquorice and ferns have become important products for export.

(7).The project area is poor in mineral resources. Except clay and pebble wvhichcan be used as the raw materials for production and processing of brick ,tiler and lime products, other mineral resources have no exploitable value due to their small reserves asis low quality.

IS~~~~~~~ 3.4.2. Resources Evaluation

The natural resources, especially the rich resources of land, lay a solid foundation for the development of agriculture. In line with the natural conditions. the economic activities are regionalized as follows:

Picture 3-2 Pasture

(1). Cold-humid highland area

In the cold-huunid highland zone, all the cultivated lands are scattered on the rocky-soily slopes. The steep slopes are thin in soil layer, poor in water retaining and low in soil fertility. The share of cult;vated land per capita is only 3.3 mu. There is no much potential for further more cultivated land. The climatic feature of this area is characterized by hligh elevation, low temperature, much rainfall, less sunshine and short period of frost-free period. The insufficiency of heat is the maui restrictive factor for the development of agriculture in this . However, because of favorable rainfall, it is suitable to cultivate winter wheat, spring wheat, naked oats, buckwheat, broad beans, maize, potatoes etc. and also to develop the forest production. Since the surface water and under ground water are richl in resource, the area has the better conditions to develop irrigation. As the vast grassland with abundant grass, the animuals, especially the cattle, could be raised and developed in large scale. Also the resources of wild plants are very rich, there are more than 300 Chinese herbs and other famous plants in the project areas; so the processing industries could be developed greatly. Since the construction of Three west" agricultural developimnt in poverty alleviation, in addition to the livestock raising ,a certain part of farmers

have get off the poverty and the economic development in those areas have been inproved greatly.

(2).Semi-arid area

Tn the semi-arid zone, the small amount of precipitation is concentrated in July, August and September, wvhich results mi frequent floods and serious soil erosion. The precipitation varies greatly between years and between seasons. Tlherefore, the precipitation availability to agricultural production is limiited. The small amount of susface run-off is mostly of blackish water, undrinkable and ahnost no utilizable for irrigationi. The tunderground water is buried 20 --- 30 m deep (hi some places 100 im or deeper). Water shortage, diy hi Spring, drought in Summer, more rain in Autumn aiid cold and dry in Winter are the main restrictive factors to the development of local econiomy. However, because of a bigger share of cultivated land per capita, varied soil types, thick soil layer and rich sunshinie resources, it is a suitable place to cultivate wheat, maize, millets, peas, potatoes, flax etc. In recent years, the area develops the construction of water cellars for solving the problem of the drinLkingwater and also for micro-irrigation according the local actual conditions and at the same time, develops the wvater-

19 . saving irrigation greatly. Such activities solve the main problems of inadequate water demand for crops in their growing season. The model of making the investment in the construction and getting the obvious benefit at the same year and also alleviating the poverty after three years' construction has been accepted by more and more farmers.

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20 . 4. Analysis of Erivirousneiital Influence and the Counitermiieastures

* An separate evaluation was made focusing on the identification and selection of the influential factors in each of the project component, so as to (I) determine the evaluation periods, scopes, direct influence and the generated indirect influence, as well as their types, characteristics and degrees; (2) select evaluation factors; (3) recommend countermeasures and the scheme of enviromnuent management, supervision and monitoring; and (4) further expound the feasibility of the project. The said activities xvill support project for a sustainable status social progress, economic development and environment rehabilitation.

4.1. Anialysis of the Project Influence on Natural Conuditions, SociaLlEcotonmic Development and Euiviromillent System as well as the Countcrmeasures

4.1 1. Analysis of the Project influence on Natural Conditionsj Social/Economic Development and Environment System

The project influence on natural conditions, social/economic development and environment system is illustrated in table 4- 1.

(1) Influence on the natural conditions

Tn accordance with the identification and selection of the irnfluential factors, the influence of the construction of the project awillbe recognized in the following:

(a). Influence on the natural environment: Because of the earthwork in the improvement of the farmland, the construction of rural roads and the construction of drinking water facilities in the implementation period, some negative influence on the natural landscapc and the original topography will take place with rclativcly a low degre.

(b).In the operational period, the development of farmland improvement, forestry and animal husbandry will be beneficial for the improvement of soil quality, air quality, surface water quality, and geology/topography, vwhile the activities in the processing of rural product and the construction of drinking water facilities generate a slight negative influences, such as land occupation and noise.

Therefore, the project construction has both advantages and disadvantages in terms of environment protection, especially in the implementation period Generally speaking, the advantages are heavier than the disadvantages.

(2) Influence on ecological environment:

In accordance with the identification and selection of the influential factors, the project will make a temporary damage to the vegetation coverage in the project implementation; but the influence on geology/topography, soil erosion and soil fertility is slight. In the operation period, the project will generate overall positive influence on the ecological environment except a slight contamination of drinking water and compacting farmland by livestock from some careless household. Generally, the positive influences after the completion of the project will be on a significant improvement of the key indicators of ecological quality, which will take the leading position.

21 .

Table 4-1. Influetce of the Project Construction on the Natural Environmiiient, Ecological Envir-onment and Social/Econonmic Environmlent in the Project area

project activities generated inifluence countermeasures

in the implementation eriod farmland temporary negative influienice on rationial coordination between development and improvement natural environmnent due to the utilization, between construction and chanige of the natural landscape; environmnent r ehabilitation; damage vegetation coverage and air pollution, due to earthwork and rockwork crop cultivation more application of fertilizers, improvemnent of management capability; negative influence on surface water strengthening technical training and .quality; supervision; forestry vegetation rehabilitation, rational arrangement of tree species for a improvement of ecological conditions sustainable developmnent; and environment al quality; rural enterprises occupy land and generate pollutioni application of clean production technology, matters and noise; regulating sanitation anid environment; drinking water improvement of drink water quality facilities in favor of public health in the operation . period farmland less soil erosion, better soil fertility, improvement higher utilization rate of water and land, better natural environment, higher environmental quality crop cultivation increase in agrictiltural output, collect back waste plastic film, extension o alleviation of plastic pollution degradation plastic fism; forestry higher environmental quality, income increase, better living environment; rural enterprises generate employment opportunities, extension of the technology with environmental alleviation of population pressure on sound, arouse clearer consciousness o farmland; occupy land; environment protection; drinking water improve the drinking water status for facilities a better living condition

(3) ifluences on social/economic development

Through the identification and selection of the influential factors, the positive influences of the project are very significant both in the implementation period and the operation period. They can be expressed as (1) the increase in per capita income,

22 . land utilization rate, grain production, output of agricultural products, (2) more employment, (3) much improvement in rural production structure, (4) improvement of infrastructures, (5) better educational and teclmical status in the villages.

* The ploject is aimiingat solving the problems of food shortage and cloths deficiency in the poverty-stricken project area. The poverty alleviation is of a great importance in the social progress. The local farmers can get some income through the participation of the project. Iu particular, the project will help to improve the fundamental conditions for both production and daily life. For example, processing of the local rural products wvillmake a better tutilizationof the local resources, improve the production structure and generate more income sources. In this way, a solid foundation is laid for a sustainable development. Tluough the construction of drinking water facilities, rural roads and other infiastructures, the envirosumentof daily life will be improved. Some of the surplus laborers will be provided with employment opportunities and the population pressure to the local environmelntwill be alleviated. These are also in favor of the environment rehabilitation.

The construction of this project will alleviate the population pressure on the local sources, improve the ecological environmnent,upgrade the environmenitquality, accelerate the cooperation and product exchange between the project area and the outside. As a result, the progress of the local economy will accelerated.

4.1.2. Countenreasures .

(1) Improve the vegetation through artificial planting after the earthwork and rockwork in the implementationperiod; (2) Coordinate the activities between development and utilization step by step. Namely, the land should be fully utilized ilmnediately after the development for a quick benefit return; (3) Upgrade the management capability and strengthenthe technical introduction, extension and training;

(4) Strengthen the management and supervision of the project;

(5) Rationally anrangethe regionali7ation of afforestation and the structure among the forest types, among the species and = between protection forest and economic forests. Suitable species at suitable places;

(6) Include the program for sanitation and environment within the overall project program in addition to the engineering program;

S (7) Imp-rovethe status of merchandization and infrastructure so as to coordinate the progress of both production and product flow;

(8) Solve the problem betweetnthe supply and demands of rural energy, and include this item into the developmentprogrtam of the project so as to prevent the farmers from negative influence to vegetation and forests due to firewood sholtage.

4.2. Analysis and Coisitertneasures of the Influence from Agricultural Development Component on the Envi onument

The investigation of the influence of agricultural development component on the environmnentis illustrated in table 4- 3.

* In the project area, the crops with high yield, high economic return and high quality will be given priority of development. Thle principles of the overall program are the coordination among crop cultivation, forestry and animal husbandry; the coordinationibetween production and processing; and the combination between quintessence of the traditional fannmingand 23

. the advanced technology of modem agriculture. On the basis of the construction of high & stable yielding farmland, much attention wvill be focusing on vegetation protection and the control of soil erosion. Therefore, a harmonized development of ecological rehabilitation, economic improvement anid social progress will be realized after the implementation of the project.

However, there will probably be some negative influence on the environment. In this case, rational countermeasures should be applied to solve the problem in favor of a sustainable system of agriculture and ecology.

4.2.1. Crop Cultivation Subproject

(1) Technical Scheme of Crop Cultivation Subproject

The crop cultivation subproject of 21,154 ha will be composed of two categories --- grain crops and economic crops. The teclhical scheine for the main items are as follows: a) Plastic-mulch Com: The suitable farmland is the rain-fed land at valley flat and table plateau as well as the land access to supplementary irrigation. The recomrnended hybrids are var. Zhongdan-2, Yedan-42, 1825, Jindan-2, Jiudan-3, Pingdan-1. Wide rows (70 -- 90 cm) and narrow rows (40 cm) arranged altemnatively. 1 seedling 1 hill. Plastic film mulching applied. At leaf spreading stage, film punctured. Attention to controlling com borer, armyworms and aphids. ~ 2 ~

Picrura 4- I Cultivatio n Technique of Plas,tic-mulch Cron b) Virus-free Potatoes It is better to cultivate on the farmland withl thicker soil layer and pre-crops of whieat, oil- bearing crops or beans. The recotumended varieties are Ningshu-4, Zhongxini-24 etc. Wide row and narrow row arranged alternatively. In bud flowering stage, ridgilg-up and top-dressing. Attention to pests and diseases and early aging. c) Mulched Watenrelon: It is suitable to be cultivated iii sandy loam with pre-crops as beans or wdheat. Careful soil preparation is needed.. The recommended varieties are Beijiiigzhaohua, Zhenza-5 and P2 t(hybrid)- Top-dressing is needed, and pests and diseases should be timely controlled.

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24

. Table 4-3(1) Investigation and Evaluation of the Project Influence on the Environmenlt

Name of construction of terraced farmland in Scale 7084 ha subproject Xiji

benefits for 0 solve the problems of food shortage and cloths deficiency environment * iutnprove the ecological environmienit

rehabilitation, 0 per capita income increase by 233 yuan social progress * and economic development quantity of nowadays in poverty status and the Is there any none fertilizer application not enough consideration of appLication limit the quantity * of fertilizer application? quantity of the Is there any application of consideration of plastic film collect back the used plastic film? possibility of causing water erosion and soil loss at What measures planting trees and grasses causing water the early period are to be taken for erosion and soil soil conservation? * loss possibility of none Will the activity occupy some of the farmland causing occupy the population farmland or not? growth What has been improved partially Is there any technical training needed development demand of activities have introducing been done in the technicians and * adjacent area? experience? person(s) filling table: communication address: telephone:

25 .

Table 4-3(2) Investigation and Evaluiation of the Project Influence on the Environment

Name of cultivation of plastic mulch corn inl scale 3000 ha subproject Xiji County

benefits for increase annual output value by 21.296 million yuan environment rehabilitation, social progress and economic development quantity of nowadays in poverty status, the Is there any none fertilizer application not enough consideration of application limit the quantity offertilizer application? quantity of the 180 tons Is there any yes application of consideration of plastic film collect back the used plastic film?

possibility of reduce water erosion and soil loss What measures causing water are to be taken for erosion and soil soil conservation? loss possibility of none Will the activity occupy some of the farmland causing occupy the population farmland or not? . growth What cultivation has been done in some of Is there any technical training is needed development the mountainous areas demand of activities have introducing been done in the technicians and adjacent area? experience? person(s) filling table: communication address: telephone:

26 . Table 4-3(3) Investigation and Evaluation of the Project Influence on the Environment

Name of improvement of the midilow-yielding scale 3700 ha subproject farmland in Haiyuan

benefits for * improve the status of production and daily life environment * upgrade the environment quality rehabilitation, * increase income social progress and economic development quantity of nowadays in poverty status, and the Is there any none fertilizer application not enough consideration of apphcation limit the quantity of fertilizer application? quantity of the Is there any application of consideration of

X plastic film collect back the used plastic film? possibility of cause Nvater erosion and soil loss at What measures planting trees and grasses causing water the early period are to be taken for erosion and soil soil conservation? Iloss possibility of none Will the activity occupy fanrland causing occupy the population farmland or not? * growth What has been improved partially Is there any technical training is needed development demand of activities have introducing been done in the technicians and adjacent area? experience? . person(s) filling table: commnunication address: telephone:

27

. Table 4-3(4) Investigation and Evaluiation oftheProjectInfliience ol the Envirolntuent

Name of raising cashmere goats in Haiyuan scale 37,425 beads subproject Colunty

benefits for direct economic benefit of 9.042 yuan environment rehabilitation, social progress and economic development quantity of Is there any fertilizer consideration of application limit the quantity of fertilizer apptication? quantity of the Is there any application of consideration of plastic film collect back the used lastic film? possibility of What measures causing water are to be taken for erosion and soil soil conservation? loss

possibility of none Will the activity none causing occupy the population farmland or not? growth What a smali quantity of goats have beeii Is there any technical training is needed development raised demand of activities have introducing been done in the technicians and adjacent area? . experience? person(s) filling table: communication address: telephone:

(2) Analysis of the xIfluence of Crop Cultivation Subproject on Environment and Countermeasures

(a ) Cultivation with plastic mulching

* Positive Influence: As a new and advanced technology, the advantages of plastic mulching can be summarized as

28 follows: (1) increase soil temperature -- uider mulchinlg the soil temperature in the 0 -- 20 cm top-soil is iicreased in favor of early maturing; (2) the utilization rate of the soil moisture is increased by over 80 %. For example, the protected soil moisture in mulched maize can be converted as an addition of 300 mm rainfall in the whole growing period; (3) mulching can accelerate the decomposing of the organic matters in the soil in favor of a higher contents of fast-available niutrients in the soil. hn the same process, the physical/chemical features of the soil is improved; and (4) mulching can hold back the growth of weeds. In the project area, the yield of mulched maize averages around 6000 -- 7500 kg/ha, while that at the open field being 3000 -- 4500 kg/ha.

.D Negative Influence: (1) If the mulching period is longer than enough, the residues can give negative influence to the development of the crop root system reducing the yield. (2) Mulching can hold the rainwater from penetration and cause water erosion and soil loss.

* ® Countenneasures: (1) Fanners can exchange the waste plastic film for the new at a favorable price. The waste plastic will be unwieldy collected back and treated. On-the-spot burning is forbidden. (2) The application of degradation plastic film is encouraged. In accordance with the research reports from Sichuan Province, small pieces of plastic film (less than 6 x 6 cm) had basically no negative effect on crop yield and the bulk weight of the soils, when the contents of the plastic film in the soil was at 1/1000. (3) For the sake of soil conservation, the ridges in/around the farmland should been constructed at parallel of contour in order to prevent soil erosion.

(b) Application of Chemical Fertilizers

30 Positive Influence: Rational application of chemical fertilizers is one of the effective measures in favor of crop growth.

3k Negative Influence: Too much or mono- application of chemical fertilizers can pollute soil environment. Normally, the main componenits of nitrogenous and phosphorous fertilizers are of nitrates and phosphates, respectively. Too * much application of chemical fertilizers is hamiful for the crops. For example, the application of calcium phosphate or iron-aluminum phosphate over 1125 kg/ha will result in Fe-deficiency, Zn-defficiency and P loss as well as yield reduction.

a Countermeasures: (1) Take the application of organic manure as the main, and the rational application of chemical fertilizers/trace element fertilizers as the supplementary. (3) Supervise fertilizer application and introduce applied technology.

(c) Application of Pesticides:

*3 Negative influence: The application of pesticides will possibly pollute soils and crops. In the controlling of plant diseases, pests and weeds, about 40 to 60 % of the pesticides is mixed in the soils, including some vcry poisonous components such as organic nitrogen, organic phosphate, arsenide and mercury compounds. Despite of natural degradation, there is still some residues remaining in the crops.

*3>Countermeasures: Pesticides with high eficient aid low poisonous residues will be applied. Research and extension of the effective methods for pest control will be conducted.

* (d) Fanrland Leveling

o Negative Influence: In the process of fannland leveling, the fertile surface soil is moved away. As a result, soil fertility 29

. is lowered and the land will be susceptive to deseitification. In addition, the problem of soil erosion is worsened.

.; Countermeasures: Application of organic manure, growing green manure, itnprove soil structure, promote soil fertility, control desertificatiorn and soil erosion-

(e). Influence of Irrigation

0, Negative Influence: In a long process of irrigation, it is possible to cause soil salinity in some area, while lowering the underground water table in other areas.

p> Countermeasures: To level land suiface; To strengthen soil supervision; To construct necessary drainage system; To strengthen the protection of underground water resources.

(f) Crop Monoculture

. Negative nifluence: Deficiency of somUeof the soil elements; lowering the physical/chemical features of the soil; mnore plant diseases, pests and weeds.

Countermeasues: To establish a system of crop rotation- In areas in short of manure/feitilizers, a simple rotation of field-to-field is recommnended.

4.2.2. Forestry Subproject

(I) Tecnlical Scheme of Forestry Subproject

fg Fruit trees: The species to be planted will be ah-lond apricots, apples and Chinese red dates. 'ille trees will be planted on leeward sutny gentle slopes, around villages and access to water and transportation. Soils will be prepared with overall pattern or partial pattern. It will be better to prepare the soils in the 1st year anLdplant tree in the niext year. The seedlings will be of grafted 1st grade. Replant will be conducted to replace the dead trees to reach the keeping rate of 100 %. Attention to pest control and protection of young trees for over-wintering.

Picture 4-2 Orchard in the Projecr Area

30 Soil conservation forests and conifer timber forests: The afforestation will be conducted in the cold-hutmid areas in Jingyuan County. The main species to be selected for conifer timber forests will be Pious tabaleafomTnis.P. armandi, P. sylvestris. The shrubs for soil conservation forests are Caragana spp., Prunus davidiana, sea buckthom, Tamarix chinensis, and these species will be planted at the margin of the valleys. Wild apricots, Robinia spp., Ailanthus altemata will be planted at valley slopes. Poplars, willows and some spicy plants will be arranged at the bottom of the valleys. Trees and shrubs will also be planted along farmland ridges. The planting site will be prepared into "V' narrow furrows or "U" wide furrows in accordance with the actuial situation.

* S

Picture 4-3 Afforestation

(2). Analysis of the hnfluence of Forestry Project on Environment

3 Positive nfluencc: A part from the remarkable economic benefit, the forcstry project will play an important role in environment rehabilitation. Forest network can filter dust, absorb poisonous matters and carbon dioxide, disinfect air * germs, reduce noise, produce oxygen, justify air temperature and humidity, protect crops from wind damage, conserve water and soil, protect wild animals. For example, one hectare of forest can reduce soil loss by 60 tons annually.

r Negative Iflssence: Pesticides are applied in pest control to cassse some pollution to air and soil.

D Countermeasures: Pesticides with high efficient and low poisonous residues will be applied. Pesticides with acute poison and high residues should be forbidden. At same time, research and extension of the effective methods for pest control will be conducted.

* 4.2.3. Livestock Subproject

(1) Technical Scheme of Livestock Subproject

3 Cattle raising: The local cows will be improved through frozen semen from improved varieties such as var. "sinmentar' or Short-homed so as to provide merchandised cattle and manure in favor of agriculture..

03 Sheep/goats raising: Local ewes will be improved with var. "Chinese Mirono" or other mutton/wool-purposed fine wool varieties. Local goats will be improved with improved varieties introduced from Lianoning Province for higher production of cashmere.

.3 Pig raising: Local pigs will be improved through introducing improved varieties such as var. "durok" and 31

01 "neijiang". After a raising period of 8 -- 10 months, the pig can be merclandised.

3 Grass Growing Project: For the development of livestock, artificial growing of grass will be condLucted, in addition to the protection and the utilization of the natural grassland. It is planned that the growing acreage will amount to 0.033 ha. The recommended species is alfafa.

(2). Anialysis of the Influence of Livestock Subproject on Environment

. Positive Influence: Larger acreage of giass,growing in favor of ecological rehabilitation; Better titilization of crop residues for forage; Providing niore manure in favor of crop cultivation.

o2Negative Influence: Damage to vegetation due to over grazing; Worsening the problems of fuel shortage and forage deficiency in the project area , so that there is a destructive utilization of the grassland resoturces and the situation of water erosion and soil loss is worsened; Causing sanitation and environnient pollution due to a careless management of the manure.

.C Countermeasures: Rationally regulating the scale of livestock development in line with the stocking capacity of the grassland; Justifying grazing time and districts; Increasing the acreage of grassland and firewood forests; And promoting grass production.

4.2.4. Soil Improvement Subproject

(1) Technical Scheme of Soil Improvement Subproject

The soil improvement project of 17,668 ha will be composed of 2 categories -- the construction of terraced fannland and the improvement of midllow-yielding fanniand (Table 4-2).

Table 4.2 Construction of Soil Improvement Project (unit: ha)

project area total improvement of midllow-yielding farmland constnlction of terraced farmland total 17.686 9,770 7,916 Xiji 5,156 5,156 Haiyuan 5,500 3,770 1,S00 Tongxin 3,770 3,770

Jingyuan 3,260 2,300 960 .

32 .

(2). Anaysis of the Ilflluence of Soil Iniproveiment Subpr-oject oni environment asid countermeasttres

a. Analysis of the Influeince of terraced Farnland Construction on Environment

.C Positive Influence: To improve the capacity of retaining water, fertility and soil for a more stable and higher yield. In accordance with the calculation from Ningxia Bureau of Soil Conservation, the Construction of ternaced farmland can reduice soil loss by 0.4991 million tons/year and increase water retaining capacity by 1.87 million cubic meters annually.

.3 Negative Influence: Earthwork can damage vegetation coverage. The newly filled section is loose in soil texture, low in fertility and susceptive to soil erosion.

*3 Countermeasures: (1) Apply of organic manure after the construction of terraced fannland and cultivate the land at the earliest possible time. According to the stuvey reports in the project area, planting shrubs (such as Caragana spp) on the ridge of the terraced farmland is very effective to control soil erosion. Caragana spp. are vesy adaptable shrubs and can be high quality forage. The annual production of the eatable section (3 year old Caragana spp) can amount to 1599 kg/ha. (2) Some channels for rainwater drainage are constructed and lined-up at the necessary sections to prevent farmland damage fi om heavy rains.

b.. Analysis of the Influence of the Improvement of Mid/Low-yielding Farmland on Environment

*0 Land leveling is possible to cause problems of water erosion and soil loss. The application of organic manure and the cultivation of green manure can increase the soil fertility and improve the soil texture. The recently leveled land should be cultivated at possible earliest tinie.

The application of chemicals with high efficient, low poisonous residues is recosnunended for pest control and weeding. Biological control of the pests should be extended. Monoculture and too much application of chemical fertilizers should be discarded. Fertilizer application should be conducted on the basis of soil analysis. Analysis and countermeasures of influence of agricultural development component on enviromnent is given in table 4-4.

4.3. Analysis of the Influence of Rural Enterprises Development on Environment

4.3. 1. General Infonnation of the Rural Enterprises Development Component

(1) General Information

In accordance with the requirements of the project, some county suburbs or townships access to transportation, electricity and water supply have been selected for the project. If possible, the existing facilities can be utilized. Therefor e, the components of the processing activities of fine starch powder and linen will be located on the basis of the existing plants for extension.

(2) Construction Scale

33 Annual production capacity of 5000 tons of fine starch powder, 600 tons of processed linen fiber, 20,000 sq. in of carpet and 0.32 million sq. chi (1 m = 3 chi) of sheep wool flannelette and 100,000dyeing sheep hides.

Analysis of Influence of Agricultural Development Component Table 4-4 on Environment and Countermeasures

Subproject Influeneeon cnvironmentrnav- be produced Assessmentand Countermeasures

a). Extension of plastic- mulchcultivation technique, a). Farmers can exchangenew plastic mulch Burningof the waste plasticmulch willcause seriousair with old ones at a fovourableprice. The pollution. waste plastic mulch uill be collectedback b). I-and levellingis possibleto causoproblom of water and and treated in a unifiedway, but on-the soil erosion. - spot burning is forbidden. The c). The applicationof chemicalfertilizer and pesticidesis applicationof degradationplastic mulchis possibleto result in pollutionto soil and ground Water encouraged. Planting and poisoningto poopleand animals. b). To apply organicand greenmanure as the d). Although the measuresof water -saving irrigation is majormanures. taken, in a long process of irrigation, it is possibleto c). To strengthen managementfor chemical cause soil salinity in some areas while loweringwater fertilizer and pesticide, to monitor soil table in other areas. and groundwater. e). Crop monocultureis possibleto lower diversityof species d). To strengthenmonitoring and adequately and cause sitapfificationof ecologicalsystem and is not establish a necessary drainage systerm. favourableto controllingharmful organism. e). To establisha systemof crop rotation.

a). It is possibleto result in degenerationof resources. a). Overgrazing. b). To add improvedpastures, increaseoutput LivestocklRaising b). Treadingon grass. of grass. c). To carry out effectivelythe programof improvinggrassland. 0

a). To protect surface soil and work out a). In the constructionof terrancedfields, carthworkmay be efficient flood-control design. fetched from other sections, the problern of texture b). The technicalschene shouldinclude design damageand water and soil erosioncan be caused. of sectional constructionand filling the b). In a short period, newlyfilled soil layer is low in fertility soil of newly section on the leveled Terrancing and susceptiveto water and soil erosion. surface- c). After loweringthe gradient, it is possibleto reducerun- c). To carry out line selectionand necessary off in surface, the seepagecan result in change of lining to drains, flood-control facilities undergroundwater table and it is susceptiveto cause should be consideredto be built on the serious flood. hillsidewherc piecesof tcrranc-d farmland are locatedif necessary.

a). Landlevelling is possibleto cause water and soilerosion. To ensure existingtechnical standardsnot to Low and Middle-yield ib). The applicationof weedicidesis possibleto cause the be abusedand carry out monitoringin soil and Farmland Improvement pollutionto soil and groundwater. water quality.

34 (3) Production Procedure

A) production procedure for fine starch powder:

raw materials -> conveyed by water -e removing rocky bits -* tuber washing -> grounding-i separating solid matters from

paste -* concentration -> washing -> removing sand - bleaching e hydroextracting - drying e cleaning in cloth bag -

* sieving -> packing.

B) Production procedure of flax fiber

* raw -4 grading -4 airing -4 chopping X scutch-ing -4 separating -X releasing material flax

packing e- nouri- <- longfiber <- dressing e- Ist coarse & 2nd flax shing coarse flax

product product <- packing *- nourishing nourishing

product e packing

C) Production procedure of carpet

raw wool -> washing -> carding -- wool yam -- pattem draw-uig-4 dyeing -- yam arrangeimentt weaving levelinig -> pattemi cutting,-- triumniiig -- product

D) Production procedure of sheep wool flannelette

treatment of raw sheepskin- soaking - degreasing & washing -> saltpetre immersion -4 removing meat X re-i nunersion

* X~ acid iimnersion & softening - tanning -X degreasing X re-tanning X penning & pninilg X dyeing X drying -

tailoring -> product -> storing

(4). Subproject Construction Conditions

A. Location of factories

Based on the resources distribution, exploitable potentiality and cuwrent conditions in the project cotuities, the factories should be located in the suburbs of county town or townships with access to transportation, electricity ans water supply. They will be better to make use of the exisiting facilities ,idle sites and places where raw materials and products can be purchased ,transported and sold conveniently.

B.Construction conditions

a.Electric power

Ningxia is one of the northwest provinces of China whlich have superiority in electric power resources. At present, 35 electricity is available for evesy village. llhe total electricity supply capacity is 9.73 blllion kwvh, electricity consumption is 8.333 billion kwh and exported electricity is 1.397 kwh annually. The electricity supply for the project area are be from inside Ningxia asid the electricity supply is sufficient for the project.

b.Fuel

The main fuel to be used for the processing industry of the project is coal. Coal consumption totals 3048 tons annually and * 8.47 tons daily. Coal reserves in Ningxia is very rich and occupies the fourth place in China. The yearly output is 10 million tons. There are four coal mines in the project counties with total annual output of 12,000 tons . In addition, there are some other coal mines near the project area such as AnkIou, Huating, Jmiyuan etc. In province. Coal supply for the project is sufficient.

C.Water supply

In this project, water is snainly provided to fine starch processing factory, flax processing factory and sheep fur flasinelette processing factoiy. A good amount of high quality water is needed in processing of fuse starch, but Xiji Fine Starch * Processing Factory has its ready-made water supply and treatment facilities, together with running water supply in the project county, water for the production can be completely supplied. Although small amount of water is used for sheep fur flannelette processing factory, there is a rich reserves in underground water within the factory. The average depth is 10-15m. Water quality is good and the factory has a pumping well. However, a water tower will be built to satisfy 300-400cu.m.of daily water consumption for production. Due to small amount of water required for flax processing, on the basis of previous * water supply facilities, another newly-built water tower can satisty the neen of water supply.

4.3.2. Analyzis of lnfluaccc of Rural Enterprises Development Component on Environmcnt

TIntvestigationof influence of rural enterprises development component on environment is given in table 4-5. ALialysis of major influence of rural enterprises development component on envirounment is given in table 4-6.

(1). Xiji Fine Starch Processing Factory Emission of Pollutant and the Analysis of Treatment Measures are as follows:

(A) Emission of Waste Water: The main pollutant in the processing is the waste water (700 tons/day). The waste water mainly comes from: (1) water conveying step and tuber wvashing step, (2) separating and concenitrating steps, (3) hydroextractinig and drying steps. The waste water contains mud and protein.

As requested in the design for pollutant emission, the waste water with high concentration of organic matters is drabied into the deposition pools. After depositing and soak dissipation, the waste water is drained into earth pool beside the plant for natural oxidation. Tiesi the treated waste water will be drained into the Hulu River. The other waste water with a slight concentration of organic matters will be drained out directly from the plant. Therefore, thc production will not make much influence on the surface water.

Generally speakinig, the treatment measures in the design is feasible and the productiojn will not make snuch influence on the envirounment. However, the following items should be considered: (a) The inability of extracting protein in the waste water is wasting resources and also causing some pollution to the environment, (b) When the water quantity of the target river is limiited, the organic miaters will deposit on the river bed. As a result, a large proportion of the ddissolving oxygen in the river water is depleted, the decayed river water will release some polluting

37 gas such as hydrothion and mercaptan.

Investigation and Evaluation of Influence of Table 4-5(1) Rural Enterprises on Environment

Na.n- of subptoet Ene-i-n of jiJiFine St9ch Pt-sing F.et.ory Loction of he nebproject Xiji noonty town-

Subproject' s significance: To solve the sales and processing problem of potato, the dominant crop local farmers grow and create conditions for the implementation of the subproject as soon as possible.

B. PuLrreseof the financed 2. Expected objectives: a). Tne construction of the subproject would bring a very notable benefit to the poor sutbproject farmersin the projectarea. b). 32, 500 tonsof potato couldbe purchased each year and 15. 275 million yuan

would be disbursed for potato purchasing. c). Per eapita net income would generate an increase in 234yuan in the project area and the subproject would provide job for 180 poor farmers in the project area.

1. Location of the subproject. 2km away fron the east part of Xiji oounty and there is no sensitive protecting target.

2. Water body of receptive sewage and its ftunction, Dry sandy river, wvaterbody of receptive sewage in the city and fltaod carrying C. Subprojea background 3. The nearest distanec to the neighbouring rcsidence: 1500 meters

4. Are there any development activities around the area and which types of the activities are these? Extension of XiJi Sheep Fur Flannelette Factory

1. Major production procedures! raw material -nwashing - grounding -separating -nconcentration -'-bleaching -ndehydrating -tdrying -- sieving -nfinisherl products

2. Raw taterial consumption: potato: 325,00 tons/year, cul: 2031 tons /year, water: 270,000 cu.m./year.

D. Subproject content: 3. Method aed discharge capacity:a) The sirioke from the bailer wW b-e purified withldrying before being released and the smoke amount is 20777 X 105cu. m. /year b). wkaste water from washing will he reused after depositing treatment and discharge amount is 90, 000 cu. m. c). Protein waste water wiLIhe reused recyclingly with air flotation and discharge amount is 198, 000 eu. mo./year

4. Possibility of adopting clean production technique Tihe protein from waste wateT will be recovered with air flotation and waste water will be reused recyctingly after depositing treatment.

5. Possibility of required standard to be teached for pollutant discharge waste wvater and waste gas can be discharged after being purified .

1. Which departments put forward the requirement for the environmental protection? Dcpartmentsin charge of the

environmental protection and project cowuty PMO. t

E. Sebpr,s n-unt 2. Are there any measurcs for environmental protection in the project construction pariody Protein waste water will

be treated with air flotation and waste water from waishingwill be treated with depositing and smoke from boiler will be treated with drying and then it is reused.

-iii o~~~~~~~~ Investigation and Assessment of Influence of Table 4-5(2) Rural Enterprises on Environment

A. Ne of fie 'sbproied Fiotenisn of riyo FhIa Prring F.ctrY tin Xiji Lsotio- of the S.bprsrojt RMyntofn-hip in Xiji -oMnlY

1. Subproject s significanec:To develop pillar industry using local flax straw, to transform rcsoruocs superiority into commnodityone, to change the poverty-stricken situation, improve living standard antd crca:c a condition for farmers to be better-off.

2. Expected objective The production capacity is 600 tons of flax fibre per yeat , newly incremental production B. Purpose of the financed value is 2750, 000 yuan and profit is 622, 900 yuan. The subpaoject will promote the devclopmcnt.of local subproject econo:ry using local resources. It will benefit 13,500 poor farmers and per capita net income from sales of raw

rmterial will be 62. 47 yuan. Afrer the imnplementation of the subproject, 125 workers will get job and 750 farmers will get rid of poverty and it will make the complenmentsuperiority of agriculture, industry and trade play a full role, and further prornote the development of agriculture and raise the integrate benefit of the project.

1. Location of the subproject: in the factory, there is no important protecting target required by the Statc.

2. Water body of recptive sewage and irs function: Dongchai ditrlc which is seasonarblern-off ditch

C. Subprojcct background C. SLibprojectbackgro.-nd _3. The nearest distance to the neighbouring residence: 1000 mneters.

4. Are there any development activities around the area and which types are these ? Transformation of the farmland and cultivation of plastic-mulch corn.

1. Major production procedures: flax straw -iairing -'choping -- nourishing - finished long fibre -grading -flax ratting -scntching -dressing -- lst coarse flax -- flax residue -- deflaxing -- nourishing - 2nd coarse flax

2. Raw material consumption 3000 tons of flax straw

* L)~~D Content of the D. Content of the 3. way of pollutant disebarge and discharge arnount: It is discharged after being purified 12. 96 tons of SO2/year, subproject 5. 56 tons of NOx/year, smoke and dust: 0. 808 tons/year, waste residue from boiler: 132. 2 tons/year, waste flax residue: 2400tons/year

4. Possibility of adOpting clean production technique: production capacity of waste water: 14700 Cu. m. yearly and with land treatment

5. Possibility of required standard to be reached for pollution discharge After being treated, waste water and waste gas can be discharged according to the required standard.

1. Which departrents put forward the requirement for the environmental protection? Departments in charge of environmental protection in the project county and ihs PMO

E. S.bp-ronsc-eS-rnt, 2. Are there any measures for environmental protection to be taken in the construction period of the subproject7

After being purified with land treatment system, waste water can be reused comprehensively. Smoke and dust are be purified with drying.

39 . Investigation and Assessment of Influence of Table 4-5(3) Rural Enterprises on Environment

A. Name ot the -obporjoj E.t-islon 0XXi}i Sheep Fur F.,oreloSo Pooceoin g F.c.t.y Locstil of the S.bp-ojeot in XiJi CO-ny tO-o

1. Susbproject s significance:To solve processing and sales problem of sheep hides which are the dominant product of local farnmer households in livestock raising, to provide condition for thc implemcntation of the project.

B. Purpose of the financed subproject 2. Expected objectives: Small amount of investment in the subproject will bc necded and the subproject vill produce desired result rapidly and have a short construction peTiod. Additional value of the products is very high

and social benefit is very notable. Technological level is high and risk - resistance capability is strong and economic benefit is good.

1. Leocationof the subproject: 3 km. away from east of Xiji county town there is no sensitive protceting target

2. Water body of receptive sewage and its ftmction: dry sand lake, waterbody of receptive sewage in the city and flood carrying C. Subproject background 3. The nearest distance to the neighbouring residence: 1500 meters

4. Are there any developrnent activities around the area and which types are these ? Extension of Xiji Fine Starch Processing Factory

1. Major production procedures: Treatment of fresh sheep hides - re-immersion - degreasing -removing meat - tanning -- perning & pruning -dyeing - tailoring & making -finished product

2. Raw mrerial consumption! 100,000 raw hides/ year, auxliary materials: 152. 3 tons/year, Water: 50, 000 D. Content of the Cu.M./ year, electricity: 305, 00Okw/b, coal :5003 tons/year

subproject 3. Way of pollutant discharge and discharge amount, It is discharged after being purified with drying, amount of 5 smoke is 51180X10 cu. m. /year, chrome waste water wivlbe discharged after being treatedwith neutralization and second time deposit and amount of waste water in the production is 18,000cu. m. /year

4. Possibility of adopting clean production technique: To raise the repeating utilization rate of water.

5. Possibility of required standard to be reached for pollutant discharge: After being treated, chrome waste water and waste gas from boiler can be disharged according to the required standard.

1. Which departments put forward thie requirement for the environmental protection? Departments in charge of environmental protection in the project county and its PMO

E. Sobprojot nS=p-najunt, 2. Are there any mcasures for environmental protecton to be taken in the construction period of the subproject? Smoke and dust from hoiler should be purified and chrome wastewater should be treated with neutralization.

40 * Investigation and Assessment of Influence of

Table 4-5(4) Rural Enterprises on Environment

A. N.a ol dv -bp-o!sd 1sty.a- Capet Povtise FP- ong Lotion of the S.bproies in laiy- county- town

1. Subproject ' s significanocTo solve the employment problem of womcn in the project ares and this subpro;ect is suitable for the wormen with low education level and will provide opportunity and channel for women to grasp processing technique.

B. Purpose of theufirnatnoad subproject 2. Expectedobjectives: Small amount of investment in the subproject will be needed and the subprojcct will produce desired result rapidly and have a short construction period. Additionial value of the products is very high and social benefit is very notable, and risk-resistance capability is strong and economnicbenefit is good.

1. Location of the subproject. 3 km. away from southwest of Haiyuan county town ,there is no sensitive protecting

* target

2. Water body of receptive sewage and its function: No sewage to be discharged.

C. Subproject background

3. The nearcst distanec to the neighbouring residenec: 1000 meters.

4. Are there any development activities around the area and which types are these ? Transformation of low and middle -yielding farmland.

1. Major production procedures: knitting wool - yarn arrangement - weaving - leveling -carpet washiing-- patturn cutting - -tsiiirning -'finished product

2. Raw material consumption: knitting wool: 108 tons/ year, cotton thread:34 tons/year D. Content of the subproject 3. way of pollutant discharge and discharge amount: Dust in workshop is released in disorder

4. Possibility of adopting clean production teChnique:

* 5. Possibility of required standard to be reached for pollutant discharge: Forced draft ventilation is carried out properly in workshop and working condition should be improved.

1. Which departments put forward the requiremcnit for the environmental protection? Departments in charge of environmental protection in the project county and its PMO

C. 5s,bps,s,js,ass~st&esscss 2. Are there any measures for environrmental protection to be taken in the construction period of the subproject?

Forced draft ventilation and improvement of working condition should be carried out in favor of women workers.

41 Analysis of Major Influence of Table 4 -6 Rural Enterprises on Environment

Subproject Main rawv Major products project county content material and productioni capacity Analysis of influence

a) Positive influence: to increase on -farm product value, Fine starch. Production create employment opportunity,to promote development of Fine starch capacity: 32, 500 tons of agriculture and sideline industry, to increasc farmers Xtjt cotmnty potato proocssing potato cubes and 5, 400 income and accelerate farmers out of povetty. tons of fine starch powder b). Negative influence: Small amounit of pollutant frorn waste water and waste gas will be produced.

a). Positive influence: To raise land utilization rate, to Flax fibre. ..llax straw of production capacity 3000 promote development of oil - bearing crops, to create Xijicountywo podcio apciy 30 Xiji co presn flax tons of flax straw and 6000 employment opportunity, to increase farmers - incorme. ptocrsnofflaxfibre.b)Negative influence: To occupy small part of land, increase tons of flax fibre. discharge arnount of exhaust gas.

Carpet: a). 90 and 120-- a). Positive influence: To promote circulation of by- charuiel isitative ancient products, on-farm products and processing products, to 9 raise commodity value *and create employment Haiyaan Carpet Wool. carpet it). 200 -channel

county processing Yarn, hanging rug. 20,000 m.of opportunity and increase farmers - income and promote the development of rural economy. production capacity per tb).Negative influence: No harmful influence wiUlbe produced year due to hand work.

a). Pcositiveinfluence: To develop local traditional handicrafts and increase circulation value of handicraftg, create £ Sheep fur Bedspread, mattresss, - employment opportunity for women, raise social positions

X-iji etrty flannelette sheep artistic hanging rug, of women and generate an increase in farmers income. products hides pattern cutting carpet. b). Negative influence: to occupy parts of land, smalL amount processing 100,000 dyeing hides,. of waste water, waste gas and waste residue will be discharged. Influence on environment will be produced in some places

42 .

Forecast &- Assessment of Influence of Table 4-8 Rural Enterprises on Environment

Subproject County Subprojeet Content Influenee on Environment Assessment and Countermeasurea

To be used as fuel or raw materials for paper making. very slight influence on environment, BOD is mainly a ). staekpiling of waste . contained and needs treatment, small discharge residue Xiji county Finie Starch Processing amlnount and no harmful poLLutant and alnost no b ). discharge of waste influence on the environment. CLean produetion will wauter be carried out and sunshine warmihouse should be built to make fuLluse of discharged waste water

disclarge of waste water. Srnall wount of discharge and very slight influenec to .. countyji Flax Processing dust to be produced in be produced on envirinment. To control pollution by XiJl county Flax Procossimg dust to be producecd in growing trem and beautifying environmrent. To return wvorkshiop.Waste residue those treated wastes back to farmland.

Small aBunt of dust, vent slight influence en Hsiyuan county Carpet preecasing dust in workshop environrnent, to control workshop temperature

a). Discharge of waste SmaLLamount of discharge, very sLight influence. To water. produce influence on civironment, wvasteresidue can Shccp fur finnelette b). Diseal of waste be returned back to farmland as mnanure. Very slight Xiji county pruducts prux&sing rcsidue. influenee on enviromnernt, after being dedusted, c). Smoke and dust from smoke and dast can be exhausted according to the boiler requiired standard.

43 . .

B) Waste Gas: The only waste gas is the smoke from boiler. In accordance with the feasible calculation, the smoke emission is 8.56jkg/hour at a concentration of 240.6 mg per cubic meter, which is below the maxinum allowable concentration in the national regulation (400 mg per cubic meter).

C) Waste Residues

The waste residues are coal residue from the boiler and the tuber residue of potato. 'The coal residue will amount to 600 tons/year. Although it is a raw material for cement, it cannot be utilized due to the actual conditions. Since the area of the plant is limited, a permanent ground for the residue has not yet been considered. In the recent years, it can be used as filling materials for leveling the plant ground. A integrated utilization of the coal reside will-been considered in the future. The potato residue will amount to 6,000 tons annually. It can be directly sold out as forage and manure.

(2) Baiya Flax Processinf Factory in Xiji county

According to analysis of the project feasibility stuidy and other simnilarplants, the main pollutant is the waste water from flax retting step in production. The waste water is mainly fiom flax retting tank. The daily water consumption is 84cu.m. And daily effluents amount to 49cu.m. The waste water contains organic matters. Based on the data from similar plants, water quality of discharged waste water is given in table 4-7 Concentration of Major Pollutions Table 4-7

Polluonts PH -SS OlDer BOD5 Volatileplcelol CO6+ S 2 FatF

Conontrntion (nyg/) 8. 7 174. 6 993.2 38. 8 0. 005 0. 003 0.1 9.9

We can see friomthe data provided by the similar plants that although disclhargeamount of waste water from flax rett:ingis not so much, it still produced some pollution to environment because of large amount of organic matters contained in it. It results in waste of resources. The waste.water is warm, so it should be treated and comprehensively used with the viewvof aiming at clean production and environmental protection.

According to our field investigation on the subproject and reconmendation from the World Bank officials, it is suggested that waste water fiom flax rettinig should be treated adopting land purificationi system. hliewaste water is purified and absorbed by soil and then residual overflow is discharged illto dry sand ditches or retumned to flax retting system for reuse.

A.Purification Prbcess

The waste water with ceitain tempcrature and rich content of organic matters discharged fromnflax retting workshop is sent through a holy pipe wlich is buried beneath the ground of a stunshine warmhouse. Waste water is infiltrated soil through the pipe. Because tunder the soil, good-quality water -proof materials such as plastic mulch to prevent water from seepage. After being filtered through land treatment, organic matters in waste water are absorbed and disintegrated by soil and microbes in the soil in favor of purification of water quality. However, the temperature is veiy low in this area in winter,the waste water from flax retting will increase temperature oftthe soil and is helpful for crops growth. Lanid purification treatment system for waste water from flax retting is given in chart 5-4

44 . TABXSLEl2:.1(contitinue(S)) Ol0JrJ[NE 0J9i NINGXI PROJEC _ 13U~~~~~~~~~~~BID,SCALE TOt.lINVE.STrlElil _!.'._'iR_i1 l:JFC CVP.DARA_ inr.teavsedeconomnie enet COWINI I TEhl UNIrT PRICE 5UCLETrOTAL1INVA. ;TO.INV\ TOWNSftHIPADMIL:.fLPGI- HOUS:;EHOLDC hLlAGR.POPU ann,vallue ann.profit ann.tzv HlOUSE Pi:O __ PIRO PRD

_.V omtanization establi,3hmenl 4_.__L__4183D1 .1 Fl_._ .__1.______irec>texpemnes _22___6¢C5795S3t ______..__ _ maaemnt eqx?enses .'bfP3 ..... _L ____basiccst .__ _ _ . - = 229 46:1l154.1_ _ = _ = . =__ __ phys_ioal-andpice conlingeneies _ _ - . ____95_63841F _ _...... ___. total Cost __2__9__88...... ___.__..000...___ _ ...... _...... _._._1_.__ ...... _ _ ..... __ ___f _ .______f .C___ 'Ai LEJ 2.1I(con ti.nue~)) OUlTIANETOF NINGXIiAPROJE~CT

BUD.SCALE TO.104VESTMENT PROJECTCO VERED ARE ___n cra-ed econorni benefit COUNTYv ITEMI UNqIT PRICE SCALETOTAIL INV. ON ONHI D.IL~ HOUSEHOLDAGRI.PdFGU nn.yalue ann.pfrok ar'nJtax [IOUSE ~~PRO PRO PRO PRO CYIJAN] SCALFHL (DI.EXP) AREA AREA ARIEAPERSON AREA (yuari) (vuiari tyuanl

Jnyari 2 21I0U3000I._111

1 umicro-irrigationcellar 1i- ___2156_ 250:3126'm __

hai1iu~~n______~~ 1161 1.019 9000 1182.68'3) 10:4491J00 9 100 46 __ 2 8835 C 46825 63.9 __ __ t___ngin 1161 113112566 13l1386i2~1453912Gh 100 61 100 111041 32____ 59777

____2 Inc[tI-ifga tion well 121300:- 2____36~000 ___ xi~~ ______~~~~~~13181.000 2QCO 1318.00 263000bUI 4 44A 19 :39.6200 1.-. 3rnn1or vjell 26701 ___ 15 130 0 51 5

haiyuan ______~~~~~~~~367011 I1 fl30S515 5 M5.6 12 24 _ _ _ 4 dfinkirnKqwatet cellar 631 123 780547i" ______~~~631I 000 122/ 631.000 7u80547 2 3 3 10 e11 12)37 711.4 5 drink u pylwte work ______0__ _ 31 400

~~nyuan ______. ~~~~~~~~~~~~~~~1503.140 903 1,Or: 60 3.3 605 :3 '2934 7.30 _ _ _ _

6. teriacedfied ha 233-7 7316 ____ 104330'G _2

__ ha ~~~~~~~~~~~~~~2337 0.497- 515G11 G0.345 12~04957 93- 100t 48 100 10330 3-5.4- 611204 95.3 h-aiyyuean ha 2337 0.145 1300i 338.837 42066bf1hJ9 100 50 100i12413 36.3I 66416 97.7

iin Lian ha 2337 0.332 360 776.3104 22__1352h- 5 100 14 342 2890 ' 40 75 ___ _-- T6~ii~7 lvCiandextend Iand.aten______~kry 23.4 GI02 ______km .0.011 ~~~~~~~~~~23.42311,524 61024~ 6 12 23.3 2640 :34.4 12934 34.4 ______I[ ituralenterprise developmnent 1 1-'1 5705-1 40' "021] 716533203510066 XlII extenmConof mire-I___ [on 0.45-9 50003920. 033 1011116036 3 100 43 100r1 0336 100 .626380 100 26000131014373660 '1819590 coXtutinoIaxI -5-__ _12 Y3 19510 1 3. 15 :31.3 3121 2'.)., -17731 23.2 :3100 616476 445 proce~~~ing[xi~~~Ion 0.32 03 35.7107 3552-4:!370 48 10o 3604 231 20303 33.3 108801:01 15634304932313 ha_yu_-£~• ain (hai ua -t 2G`37-1-j fli231 1094300 411700Ol ___-IV rnonil.oringog economTicsrituation and poject 1 ...... I. monitoringof economfiisituation 31I453

2 project monitor ______00Ij71375

haiVuan { _ 1013

____n______Qu04 1 _ _00 _ _ _.- _ __...... I -- -- - _ _ _ _ _ i_ _ _ _ _ TABLE 2.1(continuc(D)OUTLINE OF NINGXIA PROJECT BUD.SCALE TO.INVESTMENT___ PROJECT COVERED AREA______increasedeconomic benefit COUNTY ITEM UNIT PRICE SCALETOTAL I V. TO.INV TONWNSHI P AM.VILLAGEHOUSEHOLD AGRI.POPU ann.valueann.prolit ann.taxc ri'UAN) ~~~~HOUSE PRO PRO PRO IPRO (YUN) SCA1-HOLD (DILEXPJ AREA AREA AREA PERSONAREA [Yuan) [Yuan) (Yuan)

Tongxin, work-dz 30 - 11J7S3160j 8 100 611 lO ____ Jingyuan wowk-d 30 5.012 312 150.370 243G0 5 100 41 100 162 2.1 812 2.2

______(7 trinin f~rners rk-dE 15 ____2E+05 2700000

xiii ~~~~work-d-15 4.018 43744 K027 6~6160 9 100 48 100 10886 100 43744 PJ9.G ___ Ha~uan work-dz 15 4.016 51416, 60.234 771240 91 100 50 100 12804 100 67977 100 ______

Tongxin, woFk-dz 15 54024 89103,60 8 100 61, 100 ______Jingyua______work-dz 15 5.000 30816 75.002 462240 5 100 41 100, 6163 80.3 30816 82 jujl tvLii1i ai exteam,uri ______

____on fFuit tiees family 13 9165 11 9405 ______

Hai~uan .family 13 1.000 4310 13.000 56030 9 100 50 100 4310 33.7---- 26602 39.1 ______

Tongxin (______amil 13 1875P 24375 ______

Jig n family______13 1.000 3000 1300 .339000 5 100 41 100 3000 39.1 15000 39.9 ____ lzpjteennicai rratn-Ing on ____grain crops faliy 4 31736 126944 31736 ______xiiL ___a______y __4 1.000 7703 4.000 30812 9 100 48 100 7703 70.0 44505, 70.8 ______Ha~.uan family~ 4 1.000 9085 4.000 36340 __9 100 50 100 9Di05 70.8 .40128 70.8.______

Tongxin,______famiy 4 1,000 9517 -4.000 :38068_ 8, 100 61 100 95.17 70.8 47554 70.8 ____

Jingyuan______family1 4 1.000 5431 4.000 21724 5 100 41. 100 5431 70.8 26616 70.8 ______tI uj WCOniUcduainifl O.non-270 98q Ilivestock famil' -p- 35998 28I8 35998 191 xiiL. ______family 1.000 9324 8.000 74592 __ 100 40 100 9324 82 53871 85.7 ______Ha~uanI ______family 0 1.000 10080 8.000 00640 _ 9 100 50 100 1008') 78.7 53498 78.7 ______TongxcinJj______family 8 1.000 12090 0.000 9G720J 0 -100 61 100 12090 09.9 60333 89.9 ______Jingyvuan______fml 1.00 4504 0.000. 360,32 5 100 41 100 4504 58.7 22067 59.7______

12 suppo______n 3006840 ______

______ha 3235 _ _ 744 2406840

Jingyuan______ha 3235 744 ____ 2406840 ____

1(2)maize thresher Set _ __ 200i 600000 ______X______AjLI set 300 48 144000 9 100 48 100 ______Y:q~~~uan ~set 300 _ _ 50 150000 9 100L 50 100 ______

12Nxcinjset 300 61 1P3000 8 100 61 100 -____

J ngyuan g______et 300 41 123000 5 100 41 100 I______

__ _ _1(31 research ___ _ _ I__ 8000001 I __I______

X jj, I _ _ _ _ _ I__ 20000 I _ _ _ _ _ H a oiuan J______-_ _ _ _ 2 0 0 ______* * * * *~~ *. * * 0 0 0

TABLE 2.1(continueQD) OUTLINE OF NINGXIA PROJECT BUD. SCALE TO.INVESTMENT PROJECTCOVERED AREA incicasedeconomic benelit COUNTY ITEM UNIT PRICE SCALETOTA INV. TO.INV TOWNSHIPADM.VILLAG HOUSEHOLD AGRI.POPU ann value ann-prolit ann.tax HOUSE PERO PRO PRO PRO (YUAN) SCALE HOLD (D[IEXP) AREA AREA AREA PERSONAREA (yuan) [yuan) (yuan) . ^.__ _ _ - - { 1Z. Haiyuan sel 50001 9 45000 Tongxin set 5000 _. 8 4D00C _ _ _ _ Jingyuan set 5000 5 25000 - = = (2) vehicle 3 1110000 COhand cart __8 800000 _ . _ Xiji 100000 2 200000_ _ _ - Hasuan - 100000 2 200000 __ _. ______-2__ _ ._ Tongxin _ _1 _ _ - O__ 2 1 200000 Jinn uan _ 100000 2 200000 _. __ (2)motor-cycle . 31 _ 310000 __ Xiji 10000 9 90000 "a _uan I.. 10000 9 90000 _- _ Tongxin = 10000 8 8000_=.=. Jingyuan 10000 5 50000 (3) housebuilding(townsh 1550 620000 31 100 _ _ Xiii _ I g m 400 450= 180000 9 100 Ha _uan_I sgqm 400 450 180000 9 100 Tongxin somsn 400 400 160000 8 100 _ _ _ _ Jingyuan . sq m 400 ___. 250 _ ..... 100000 5 1001_ _ _ Xi^i___ 1(4)community service(to nship viILWe)1101600 1 31 100 200 100 : xiii 1______298080 0 100 48 100 -_____ Haiyuanl______3024004 0 11 E______100150 100 ______30 T ongxin _ _ 304560 El 100 61 100 . . Jingyuan = . 196560 5 100 41 100 _ = 451 field dernonstration 400 400 160000 1 _ Xiii 1 . 400 1,00 96 400,000 38400 9 100 48 100 96 0.3 55.7 08 Haivuan 400 100 40000 3 100 50 100 . _ _ _

Tongxin ______400 122 483800 _ 8 100 G1 100 ______Jingyuan. _ . _ 400 1.000 82 400.000 32800 _5 100 41 100 82 1.1 10 1.1

161training tecinical staff ork-d 30 4120 123600I _ ___ 1 Xiii wokd 30 1051 _._ 316801 91 100 4B 100 _I IHaiyuan wolrk-d!30 _ 1080- 32400 - = :__ . .= = = __ * * * * * * *0 * *

'ABLE 2.1(ccntinue) (OfUfTLE OF NIINGXIA PROJ-ECT ___ _-_ BUD. SCALE O.INVESTEENT PROJECT COVERiD AREA T increa-ed econornic benefit C(UNTY ITEM UNIT PRICE SCALETOTA 1HV. kINv TOWhISHIPAD)4.ILL4AE HOUSEHOLD AGRLPOPU ann. vWiT annprotil ann.tax ,IS PRO_ _ Pr-)_-_PR_ __O_ .YUANJA CA H[lU 01EEXPJ AREA AREA AREA PERSON AREA (yuan]_____ (yuan] (yaranj

______7L 4 4 ______1 -- _ Uaic______5 se onion _ 618=_10C __ _4___4'r sgt53I._- _ 3940 Ton_._in- _ -'-Z4i. 2 1TT25 --3 18131300 8 1 1--- 2 11041--4 _'J4 Z 4_, ._41]. 1- _2Z{;______tr-l23 _____O 3____ 7 ______- - I- ______- X ______- - ______I ____- . ______- 1 lu0~ 211 40L14592 4415W8 7 ______ashead .TSTT- -- -l - -3 4 ______i5-_____l ¢rj'S134340l 3b'5 -t-O 2 54_ gigd2 tito7_547OD:______tlie 0 C 11 r 7757 ___je_3 ______l 1J~ ~~jji______~T_- ead _T9Tq -TLTJT8_71UO TB 77=1 41j iA ~ 10237 33 1~~ 1ij8-4Uj 4 44 1 4H ______T~IT LLIU T7tFT lIi,UUL 7~0 01 8 10 50 100 ,0O ~ I I23 20.01 . 4U30U 4`- 6b52 ihh0L rin '- fesad Tr TOU T73 MT 14 0 100 .1 1 800 - 88 a33 23 __4f0 17150

__i______heaa_T____hd__ .JO T- 1Tha. I0 T = _5 55 00,'i 41 1 000 0 _ 3.l 146 3.1 Ii:D = 3434880 45000 2 sheepib ha.T'3 2''50 _ I5U _ _ __4I _,235581474 0 1 ______a._J Cy y!!1g!__9W ______7.'4 50 5_1_ . _Ij_. - 2 _ng____ 2. - U.UI___ . P ___he2 - 14lIj,21AU 170i- 1.. .-.. _ - - -i IF 43510 cL_-- ML___27IJll hfle9osI heeps- na1.2F8 5X0 2 T3U5U0 49134W 10 48 100 3604 3 1 33.1 I r3it01c84-4302 4 3 .__.__ 3 7ilr ( 1 - 23eS3v --{? I -- - 33=._._5_.3_. Haivuan '-_ . 1:b_UU_ _8 10__ i t 10 42 _3 8 38.4 31-73---- 478035G 4188. J7_ T215T 273l011h El5l 10 41 10 00i2 9798ei 2s.1 4004060 2U5fl I 8000 7260000 ~~~~~~~~~~~~~~~~~10rib71,0 5i1505203 40UO Haivuan _ ~~~~~~~~~~~~~~~~~~~~~415_~2~4'.170o': --- 3145.O 44-St955- 2 40931157 _ _ - ___ca i -Re I i ______W: --- -- i ' S _ ZU 9 -Ionxi ______7 ~Z

i-iyaiyan ______3 810j108.4_ __

. -- _ _ =_.- =_- Ji - - wn 5UUU 2J1J T'-5TIJ -T3 '7 *1:0

______81000 J 48 100 10380 QL2 9,, 1-1-4. ______~~~~~~~~~15 o~~wa~erand ha. 225-0 388 ljl 2'21.JjhJU es . -2U 16 2------l;3 3__

3______coniferos tree - ifa.7 -27- -f 3T41 u_ hea1 T7i7ZJV4T T7&f U0 3TU 5137.68100034451JJ 00 2._W . ___ --1 -

ha -~~~~lj -1035-001&______. extenion andtia,nin a- -6 M l; Thsu 3. LI-___ - -- _Q_ =:=r_ _t___...... _:___S,_ .-...... = - 1 - -...... 28531 15415 08 _____~~~ha I1554Zfl.,I.,1_4_900014002 L:- 5t. 9- TABLE 2.1, Y _pHNF,3FN N-GXJ",1A.PROJECT 3

-- -- D~~~~~~~~~~~1UD.SCALE ~TOAVETMENfji I~TE COVEREDRA~raee~wi eek COUNTY ITEM ~~~~~~~UNITPRlICESEI L TOTL I1V TON LTONSI G[MVL\l GIPP n ai~ aOSIO.n _profi ann-tax HDtJSE ~ ~PFIU" PRO PROPR IYUAN) - LI HO (DI EAX,P11 AREA AREA PERSONARlEA tquinn (ywn) (yuanj

to~~~~~~~~~~~~~~~~aI '~~~~~~~~~~~~~~~~~~123010i2¶'4 -12015447~ 49983140 .agricuhturaldevelopment __, f I9 71t.232 3 11-250652714881300 1Cultivation ______i1351 1u3:13932 1 34891322151342,1 __0_ ___1 land imnproverment ia. 207 ___30 ______20223'301Fi__

Haig'uan, ha. :00:0700 5990172 G5'3001i1 5 10134 Al10in OI77 _____

Tongxin'~h U 0 280 ~3 0 5830,2186 ',78]I390 8 100) 61 100 131450 JIII 71137 111 ____, ! u7IaII7i a. 2070 Q'0L' 230 1320.407 4765w 1000 1 41 0C 774 r 53 101 __

A .nrai r ha. 33618Ž3 I __ __ 21iPij5H¶~ wheatincasin ha. 'I795 49((1 ~1bOi __ 503323210 7046j H,aiyuan ha 195I3 018 2100 3,27.0343 370'35001 I100 c 50 100 -11526 90I 63590 93,61 III ¾1'IJ208 T [nlna. - 795 0 I 56 1roo -2.44. 151 1J"00ony 100 8-1 10Cii7352 547 -tI403, o; 1 Fl50Q. --i I 515b00c Jingyuan ha. 0o0 140 41.03 1 I 00 41 10CII7674 11OL 17593' CIO 3U1:'J4HI10 b2h7538I

~~~ . ~~~ha23303 0.2I ~3b LI I 9030~1 I,- 119011300 '100 48,- 1(Of'10120 9_11' OF09U -3'1 41 24!3000JflnJ01129.h040_____ Hai~~~~iuan ha -c~~~~~~~~~O01400,1 55 1200 '3' h7~~~~~~~~~~~~~~41340011 8 100 50 100 1241324 W' 004(066-1 99' 141(0110 I 010 ______~~~~~~~~~~~~~~~~~~~~~~~~~~33 Ton~~x,n______~ha 3'U 0 4 1 110 023700. 3T WO0 0 1 10 00 018 ~1 4S59704 8 _171-¶1 L Tonvun h 2______33O0 611 IC Uf 2' 01' 31204101 4l 00 35 100075 - I r "J9r IY'' I 0 '~' _

_____ha__4UL 1 1 Oofl00J AI523 00597 Jj) ______iyJn(3(viltAS-free potait) r' 01 1935130 Fla. 223002 3973 'I0003690 xiii ~ ~ ~ ____ ha. ~ ` Q-I0912 1O01 24231 24 17:OOI '41113I OIL! r48 1001 69200 84, u 5,4,0 84 9 4 -1ID0 21.51082`l Toncjxrn ~~~ ~~~~~~ha.22130 01 2 93 71,120I-F 171430001' CIO1 01 100 79528 51l. 154u15 15,2 2 48:J133 2 ¶015 Tongui~n ha. 2230 0 122 12L7_J 272.014 211830l __3100U 41 10 64 0.Ch' 0 59Lr42J'

!~ intercrop~qo~ans~dpo~ ;0 ~ ~ ~ ___~ luLl 4O %I0 i01~ ~ 4 33~__~~ri53i 7254 ~30 3 02_7__-0

Haiyuan ha. 242 0 .~951 I9120 0O4 562 656 370 4~2 403

T n inha, 2402. 0.1'44 010 "'3 9.723'; 31 1101.1I_ '7 57 33.413230 24 20u121 LI 2730131 'I O0'1W _____

3 casvhcrop.s ha. _____102 ______34__5O8 9L (1 ~flax ~ ~ ~~a 134 ~9 11 390L 305 _ _330_

ha, o.G0013 132 81031j)T '031 1 1.3 3121 ____' _ 1 2 '',11 '18j3030 ___

___ cultivatedWith plastic hia 28825 300 8W5 24991 1331 -1407~0[

______ha 208'2S Il ' "10 j143 1 004750 U 031 5.025 10.1 I1011 0 431'031010 TABLE1. BASIC DATE OF NINGXIA PROJECT CONTIlTOU1it31

IItEM UNiT TOIA __iyun _ ._r - _luxin J_nv _._____A_ pnijocl projoci po.joct pfuoclr projor projed pIojed ponjoJ prejed prject projedt _ _ _ .___ - ______u_ ,w B~ n torn xhho!sivip _,iII~ n qoweoCuntley- trwCnabip _yihq_ countv toIwnw p _ Vi _ crsqut vihnqe _ rorage pduction ton _ . 2 .4t 13t5760 212073002 179902.0 __3 17.10

______toixi groin oltirtenr. to 17046.00 3245.00 2098 00 10275.00 144200 327r7)010 _ ._.____tex1 oexlp _ _ 1000 yuorm ___ 701 1421 bt - -~- ~ 700______21132 _,31234179400 70083000

_____ ._ .__Ort!pu ro,tqiuWnl___.oiril I v _ __ 1___020M0 _J_ 20_ 2502_000 ___ _1_10 55140000 onnminQ 100G yeon r ano 10M132 000 WD440000 33260000 163s3MO

_oyouk I 000yu.n _40 0100G 450 000 MOR0 __1713000 Wiasntlck 100 vurm 20050000 0662.DG0 b932.000 21.63.000 U53000o

lo___ aneputo ti_wnship enirex 1000y_Ima5d __ 3 110 17000__0 9161.400 21_0000 _ 72870o0

_____ os_000_.______00 _3___ __ . __42.400 __ _ 2.30 000 1000.000 U ~~~~~~~~9 S S0 S St 9 5 5

TABLE1. BASIC D)ATEhOF NINGXIA PROJECT

hiul MIlT T(OTAL 0L .Aoio~______-15290- t projeri projec0 F01ejedc project prejedt project pvrop;i pmojrcl prejed project prunny r - r2m.ftlv lenhi coolt' towenlhio ~ ~ ~ ~~~~~~~~~~-- yi6nrq~. con t, twirin V0le190,49 i2!prnr wrrLntrSp rule,1)6, co.-Su1!Y- townshulip village,, ______- 0mmherolenenlul pimely school ' 09.07 032447 00 60.--r,00 69.00 60.00 06090 OISO ____ 42 6,~050 talpoioei ant primary school(6 ______~~~~~~~re) - '0 -~~~~ 55080 4000 _____ 1.41 4316 70.00 062S _____ zTuO 076Sr 300501.40 ntlerel conditiyor

40 yenrroln3m6terrrhnrenvere¶~~~~~~~~~~~~~~~~~~ OiiO,3 7111 ______6.20 mni1mm"flrel.r in 411years C ___4020020 3730 31.60

mninitneropRiolrnr in 41)v,ews____r -32.00 - ~ -2000o -2730 -20G.30 >1 O'Caccumulated anenual _____temporel.nre(40years) C24,00.00, 2400.0 314020 2491.71)

_____46 yororsfronl-len 130.00 105110 151.00 .132.00

______yorvn m'ermgm A) snno~l reinImli mm ____ 16.70______300.1) 277.90 650.90

40 yew.nCvi-go annoel eveporation mm ___ 1003.701 ___ 2200.061 2325000 _ 14401011

_____mini .. a, level m _____ 10000 13362I______1260.00 1 BO6.60

orni rem level mr 2033,00 _____ 00.0262500 ___ 2942.60

______vergeg sea level m 2160.00 ___ 1003.00 13~4400 207000

f_____lemingmillrenmochinary h.30002165.00 2122.06 17013.00 1.160.00 fo1rm! aryi!. km ______017.000 101=39000 21306.006 30006000 10300.000

- eI~~~~rolrio6~~~~~~ kwhro.r - - - 12014000____2_.00006 3007000 3139000C 2500000 ______eplication of firdilizers t on ______120140D 6000.(1 2107,00 06091 1206.00 nlreesnmrtaolse.___

ivillacies nc,.ce s ltnreed - _ _ _ - 221 66____1 _ _ _ _ 40 79 35 ______villagan access Innelnctricily eer . - 330 10 60 124 47 ____ chroal!No ipnpulnhion 1 060po1nmon 40.001 61011.544 .17701- 3.001

______onenlr 106 p,!nonrlo 00.260 221011.277 _____ 200841 _____ .041 ______

snoltesnt in middleschool~ loan Peroce ____ .010f3.5 1.200 ____ 10360 0.314 __etudentoin prissoly schol I__1640 peone 52.45e 10.610 11.072 1901Oil__ 4.771

Ieacherst____ penr _____ 370 10.11 779 1174 302 ______

- - middlescelennesp o4---. -- 1.14_____ - 0 - - 12 42

J pri___mary sehoul remhs e rho______2160 00 ______31 1004 340 medical staff portoen 173- 07 39 42 41

hospitalbeds gtel0 _____ 33 ____ 30 Zs

trrchnicelnIell . p torn ABU 10124 ______64 ____ _4

senijel prodn.utioe mInmemele ofCap tellrmlendh, 2460440 13197.60 3020.0n250 100____ TABLE1. BASIC DATE, OF NINGX A fRO JE 7C

('1)1______010310J!11L) ------. ______------Y -W

t,ro]311 f, r.0(r pitIjoIOO plj,10prai p-jo11 prI5ol;1(p0300 I(~t p11111ic - I0l1

o0o~~2~Il0r11i101i110000Ono noolol11-000 oOOiOI -- -- 0301-07.052 -- 0117-1------

lo700iji r,oifteiy 11n011lor 700111011 0 7000ifIO701o0 -100 70'0---I

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s risOlfy 0 hrcoho. 10111 7270100 1"or 1(0 17i0 000 1712.00 501 (I 11(C,000-0-01(0!

noso~rooat 6,0(1 trul, to0o0!'s 1.010! '10111 I7.1 0071:60( '000D 7111111' -61100

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no.n1r,uoO,,, JIltI[ly5!lf2l I fil ont; "lf l~~70!11721171~~~3I35iR700tl01(00 ~~~ rOl/ U~ 1510410 131 1 0' IIt11101 CM1707il 7017 - 070.1(117 l I I 5lJIJ -tIro, ------Do ---- Li

rO n shr. rOcfv inw p'0, ic k1370 rOI001 11007lo0 77.-lin 70;1 -o 11 100 0111u711,-01(

Ito rootssrnlso ost 5051115 i.j~~~~~~~~~, '0004 21 10Do 511 7170.08 0 001.570 -10.04111 237 'I :0071

P0'rpli,utioso 014 eOllOj o,h-jglwotin 4000, 110.701 00 I,iqts-Ilsnriun dbolrosrr ,v, 000001 7~~~~~~~~~35;300 '52 11 W 0117 100o112500

o~~~~~~~~~~~15.111 'o710 7000~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2 TABLE.1 BASIC DAT'F.OF NINGX1 A PRCJETT

UNI l 14( -rT L ___ __-__ p"'jum projed rinr 1,rrject~ 4(13(1 p0jelli .144 41t I 1434(2 I:-roid p(llj-tl proj,0 3 4 jumbo,nltownobipn 4 oL, V.IIOCII~~~~~~~~~~~~~~~~~~~~~~~~~~1'I, Count 1104to, " -. ~~~~~~~~L Y 343Y 31 3243O 2 Win~ !.. - .444P. 2 . .. j3~''' "

4 34~~~~~~~ 3 '7 wmberolloofnl ,tnin'3lqo3442 23 2134 301-1 1_93 43 2"' ll 411 43 214 Iifllpnroun1141.133?. j 2<4443 423.443 3 3I14'12411.14.1134 342114 42 422 I 'I 4'' 3 ~~ ~ ~-. ~ ~ ~ ~ ... - - I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.---

tio 42.14 1 '~~~~~~~1,l~~n43' ~ 134C J3'`2 3131 ' !4 '434 32344 442 -1 4 147 r,ornlnr of m*mohodI,ouohold 112414 1433' 3 41 11'" '442 I43'21144 32I .4'131 A 313N G1'4103 J231A 140I 242

1411t4I1111Inbor a44~~~~~~~,11n 1731.4'lli'3'~~I 1,52 4 .I31~.11 2 .12114 11321 3A323 21 41'111' 13, F.13 ~ 13442 2V'413,4 34'''~, .31 01.3341 I 331'

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lf,n41,Sfnnll ho 31433~~~~~~~~~~~~~~~0231 3 3132 014433 131311 2LI3334 11332 4I 13121 141042 3343331 '3 I ul3Iiu~~~~bfonIl 93114411 h~~~~~~~~. 3333313.31 3343141 _ __. 4''' -.- 331134111__ _ 2333323344._- 44-32.--1I--.4 - J- 11- 1133 33- '3 _114 1314--[I......

.~ md hn. 3ff.4(0 '331) 41.11 13.113 4.3.2 10.311311 2 11

~~~- .-- - . - - -. -. ------. .--...-..-.--... - - - -~~~~------. -- . . -- - . -. - . - , - … -- .--- - ., ,I . __",l. obIit w h tollo n. 134414.12 4312334,. 1 13113331 1 31O2433 1111.4313.3 140.33 44~' 3' .J1 . . In. 4.1314 43334 3311233 ... 311133 31.3333.-..--... .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.....

411041044l4~~4nrllr,1nr4,lllnd 'In In. 4131331-13 27343116 3441341C 333333.3 1 G0,0) b J-4.3J

rflIn,'(tklTIi1400l(11(9~ ~ ~ ~ ~ ~ ~ ~ ~~a. 841 f0 5 3,~4 0 1~

Inl3fi u tu fb,.n10n o3 K . f14wJ03.433I1 7 - i OC 301 2313343 433.(J4I.333334341

~~xfod~~~~drn-o~~~~1r~~~y321.4431 131.424 B f7 . - I G I k(k~ 9 L 331113.31 31I.13414,91

jp~~iiow,,~I ,:nnl 4. ,,wln 140114.,~~ 31334491141133 24334.4111 11343134 24-33434433701:1333 1.

______...... -nlin- - n1 uc- on- 4443-4 313416031;. - fii-fr I 111313313 2414 3 Ningxia: County, Number: hina: Qinba Mountains Poverty Reduction Project Survey of Public Participation * of Ningxia Project

Name: Sex: |Age: INationality: address * ocupation X family| educational level belief .. * annual per capita income of family Understanding to the project Know well Understan Generally Nothing Attitude to implementation of *1 the project Quickly Delay Cancel Understanding to project No under- enviromental protection Muchk Understan Generally standing What about the project influences No 3 on the environment Greatly Influence Lightly Influence The project construction influence Consid Greatly Ceneral No on the living standard of the peopl erably intluence Your suggestions and concerned problems

* Date: personu(s)filling table 6

r~~~~~~~~~~~

Description for the questionaires:

I.The questionaires aiming to find out the public's attitude to theproject, So as to consider the opinions ofthe public to the project construction.

2.The objects of the survey. technical personnel (15%); workers (S%)farmers (45%) [minority nationalities no less than 50%;] township residents (15%); environmental protection personnel (5%); deputy to the Regional people's Congress (6%) ; members of the Political Consultative Conference (6%).

3.The questionaires will print 500 copies, distribute, give directions of fiting and take 0 back by the county poveity reduction office.

0>

. (Illustrate to the objects ofthe survey) China Qinba Mountains Poverty Reduction World Bank Loan Project Brief Introduction * of Comprehensive Development Poverty Reductio,; Project Ir Ninlgxia Project Area

I. The main objectives of the project is to alleviate poverty and solve the problems of food deficiency of poor farmers and create a permanent income resource. The project would start with changing productioon conditions, select the dominant industries, Put the stress on the development of cultivation and rural enter-prises, raise living standard of the farmer households ofthe project areas in a great extent, enhance the poor households' ability of self-accumulation and self-development and promote the economic and social development.

On the basis of the selection standards. altogether 31 townships of 335 administrative villages with the population of 407,780 are selected to be the project areas, in which 9 townships of Xiji county, 9 townships of Haiyuan county, S townships of Tongxin county and 5 townships of Haiyuan county. In order to ensure per capita investment intensity, about 200 administrative villages in above-mentioned townships, 44, 814 fanner households with a population of 235,597 would be covered by the project and the covering area would be 7107.28 km2.

* The project would realize the following objectives in the six years of the project implementation.

a) The objective of income: According to 1990 fixed price, the annual average per capita net income among 44,814 households would reach more than 500 yuan. The annual average per capita net income below 400 yuan among the households that have adequate number of able-bodied workers would not exceed 4,033 ones.

b) The objective of farmland:

The basic farmland per capita would be 2 mu.

c) The objective of practical skills:

In the project areas, one person in each family among 92% of the households should master at least one of the rural practical skill except crops planting.

d) The objective of the infrastructure:

.

. In the project ares, the project would solve the problem of drinking water both for farmers and animals in over 80% of the administrative villages. Additional irrigation land per household would reach more than I mu. .

2. The project contents

2.1 Land Development

2.1.1 Crops Cultivation

(a) Grain crops: During six years' construction, the project would develop 18,226 ha of crops area, in which, wheat, mulch maize, virus- tree potato and legume would be planted.

(b) Cash crops: About 2928 ha. of cash crops including linseed, mulch watennelon and Chinese onion would be grovm in Xiji and Tonxing counties.

'(c) Froestry: About 716 ha. of timber forest and fruit trees, i.e.apricot, apple and date trees would be planted in Haiyuan and Tonxin counties.

2.1.2. Live stock raising:

About 17797 heads of yellow cattle and beef cattle, 95,445 heads of sheep, 14,155 heads of cashmere goats and 7,730 heads of sows and pork pig, would be raised in four project

counties.

2 2 The rural enterprises:

The extension of carpet factory in Haiyuan county; the extension of refined starch factory and flax factory in Xiji county.

2.3 Rural Infrastructare:

a) The drinking water works both for farrners and animals: The project world construct 1,237 water cellars both for farmers and animals and 3 water drinking works in Xiji and Hinyuan counties. After the completion of the project, the project would solve the water drinking

problem of 18,504 farmers.

b) Small-scale irrigation works: About 2,000 micro-irrigation weils, 15 pumping wells, 21,566 micro, irrigation water cellars would be constructed in Xiji, Haiyuan and Tongxing counties.

0

. c) Monitoring of poverty and Project Management Establish Monitoring network in the Project area, purchase the office building, office facilities and vehicles.

3. Source of Fund:

50% of the project fund will from the World Bank loan, most of the counterpart fimd will from

M the state and the Autunomous Region.

0~~~~~~~~~

0

.

.

S

-S

0 Chart 4-4 Schematic Diagram of Land Treatmeint System for waste Water fro Flax Retting

' 77 7 7 Warmh

0 ld F \ j>W)7A) 4 5 _ :~~~~~~~~~~~~~~~~~~~~~CroPs3 Warmnhose, Cr6p3~

Crors~~~ ~ ~ ~ ~~~~~~~~~~se"o G|un worr OC)'' p C) 0t 0 o)I _ t0 _i

Svl I ,Soi < 8X plasticMUICII \ ~~~~~~~~~~~~~- eL ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~soilk-anti)A '' E ~~~~~~~~~~~~~~~~~~~~~~~Water reosisingplastic mulichx

frcont of iho diagrai, Profile

Nlgihsln i i soI nai nlaor.nisoinatn Piostoan n r -

d ikwinsi~~~~~~~~~~~~~~~~~. ~~~groisp,istXtjinl *tw. poreenJO Ohaigt

pxooo-osodngi of ins otronlg

poin IAeCtAT = ltI-.UtU sonIng . ai T&ta no. li.. . ,-.. B.Main advantages of Land Purification treatment System

Accordinig to the introduction of related experts and available information, there is successful experience in the operation of the land purification treatment system in foreign countries. Its main advantages are as follows: a)The investment and operation cost needed for the systemn are low. The operation of the system is stable and effect of purification is good. b)Soil can fully absorb the organic matters in the waste water and it is in favour of crops growth and redue pollution to enviromunent. c)In winter,surplus heat of waste water from flax retting can be used completely to keep warm in warmbhouse all year round. It not only makes full use of resources but also promote economic benefit of enterprises. d)The system fully shows the principle of clean production teclhnology. The lost resources such as organic matters ,surplus heat and water resource are not only made full use of but also pollution to the envirorunent is reduced. in addition, the main pollutant from flax production workshopis dust- In accordance with the design, the dusty air will be filtered before being expelled. The ssnoke from the small boiler will be desulphated before being expelled. After the above- mentioned treatment, the pollution degree is within the national regulations.

(3) Xiji Sheep Fur Flasmelettf Processing Factory

The dyeing and ironinlg for sheep fur are mainly to adopt chemical tanning for sheep fr.The whole production procedure cani be divided in dsy step atnd wet step. The major waste water from produLction has the characteristics of large discharge amounit, high alkalinity, deep chrominance, high oxygetn consuinption and rich suspensioni matters. It can be divided into four types according tolits characteristics. a)Harmful waste water: It accounts for about 15-20% of total waste water and mainly clhromisun-cositainring waste water from tanniing. This kind of waste water produced serious pollutioss to environument and is mainly treated. 0 b)Waste water containing useful matters: It accounts for 10-15% of the total waste water. The composition in it is 0.2-0.4% nitrogen,0.01-0.03% phosphate which are good organic fertilizer. c)Washing waste water: The waste water from washing at various steps accounts for 55-65% of total waste water. It contains ssnall amount of organic matters such as fat, fatty oil and fur residue and salt. This kin-d of water produces slight pollution,but is rich in suspensioni matters and should be treated with deposit. d)Dyeing wastewater: It accounts for 10% of the total waste water. It needs treatment before being disclarged, otherwise, it will mnakethe surface water in abnormal colors-.

Of which, the chrome waste water from sheep fur flanuelette production is the maini pollution source. According to the practical production process, retting step is made in chrome tanning tank. The cLrome tannuing solution is made in one timne and 5 tons of solution is put in each tank,among Niuich ,200mg/litre of Cr3' 3000mg/litre of Cl- ,PH value is 4"4.5. This part of chronse solution is only discharged for twice a year. According to the discharge method for waste water, the complex comnpositioss of waste water, intermnittent discharge and large variation, the chromne wastewater will be treated by adopting alkaline method. Because Cr? in waste water from retanning tends to transfonn into CY(OH)3 deposit, the quantity of Cr(OH)3 and its

46 .

complete sovation are related to PH value in water and water temperature when PH value in solubility equals 8-9(Ksp

equals 6.3 *10-3). When PH value equals 7-9.8, the most deposit of Cr(OH)3 is formed. When the water temperature is at 18 to 20 , the speed of deposit is maximum and the effect is best. So the following treatment scheme for waste chrome liquid * will be adopted. Chrome waste water iputting medicine Chrome waste water mixing with waste water

* bar screen K-* s tg 8

0H3f disposal Chart 5-5 Diagram of Treatment Scheme for Chrome Waste Water Lime(CaCO3), Na2CO3, NaHSOi, NaOH can be selected as the medicines to be put into settling tank while adopting allialine treatment . If chrome tranning solution is recovered, putting medicines, NAHSO4, NAOH can be selected as the * main materials anld be made up alkaline liquid. Phvalue and water temperature should be controlled in chrome treatment tank and mixing shol]ld be calTied out. When the efficiency of chrome in the chuome treatment tank reaches 89.5%, it can satisfy the requiremnet of GB 3549-85.

(4). Carpet Processing Factory in Haiyuan cormty.

The raw materials are mainly wool thread and wool yarn. 'Ihe production is of pure hand weaving. There is almost no pollution to the environment. However, Since most of the employees are women workers. At the consideration of the physiological features of the women workers, heavy things (such as raw materials and packed products) will be carried by * men workers. Working conditions will be improved in favor of the women workers.

4.3.3, Analysis and Assessment of Influence of rural Enterprises on EnAviromment

(4) Extension of Sheep Wool Flannelette Plant

Forecast and assessment of influence of rural enterprises on environment is given in table 4-8.

The subproject is the counterpart one of agricultural department component, its scale is small,but it covers large parts of the project area. In the preparation for each subproject, through carrying out screening the influence on the environment produced by each subproject,and putting forward related clean production technique and measures for controlling pollution, the construction of the subprojects is feasible.

4.4. Analysis of the Influence from Infrastructure Construction Project on the Environment . 4.4.1. General Information

(1) Construction of Drinking Water Facilities

In 6 years, the construction (3 sets) in the project area in Jingyuan County will be composed of 33.3 km of water pipeline, 551,300 cubic meters of earthwork and 19,600 cubic meters of grouted rock.

(2) Irrigation Facilities . a) Micro-irrigation Water Cellar: In 6 years, the construction (21,566 cellars) in the project area in Haiyuan and Tongxin counties will be composed of 1,549,200 cubic meters of earthwork, 613,700 cubic meters of concrete work 47

. and S79 cubic meters of mortar work. a) Micro-irrigation Wells: The construction (2,000 sets) in the project area in Xiji County will be composed of 25,000 cubic meters of earthwork and 900 cubic meters of grouted bricks. b) Pumping Wells: In 6 years, the 15 pumpingwells to be constructed in the project area of Haiyuan County will have an installation capacity of 324 kwh.

4.4.2. Analysis of the nfluence on the Environment and the Countermeasures

(1) Influence on the Enviromneiit

The construction of the drinking water and micro-irrigation facilities will improve the living environment, production conditions and health status of the local fanners- Generally speaking, tb.e advantages are more than the disadvantages, which can be expressed as follows: a) The construction of the drinking water facilities will improve the quality of the drinking water in favor of people's health. b) The construction of the infiastructure will improve the living standards and livingquality of the local farmers. c) The imnprovementof the living standards will promote the educational situation of the local farmers in favor of the social progress and economic development. cl) The conistructionof the micro-irrigation facilities will improve the ecological environunentof rain-fed fanning for a higihergrain yield. e) In the implementation period of the project, the temporary damage to vegetationjis possible to result in water erosion and soil loss. f) In the implementation period, the drinkinLgwater is possible not upto the sanitatiolnstandards due to the lower level of management.

(2) Counterneasures

Trhefollowing countermeasures will be taken to overcome the disadvantageof the project. a) If it is possible, the engineering activities should avoid raining seasons under the consideration of water erosion and soil loss. . b) In the implementation of the project, the management of drinkinigwater and the supervision of the water quality should be strengthened. c) The constructioni sites should be timely mended thlrough artificial planting of trees and grasses to prevent water erosion and soil loss.

Inthe implementation of the project, an overall program of eulviromunenitrehabilitation and sanitation management should 48 . be worked out. Function districts should be-defmied. 5. Particpation of the Public

5.1. The Purposes and Way of Strvey

5.1.1 The Purposes of Survey

The. survey aims to find out overall understanding of the public to the project and grasp the basic situations of the beneficiaries in the project areas, listen to the opinios and voices of the public th the project construction, respect and give play to the democratic right of the project beneficiaries and also ensure the scientific and democratic policy - making in the project construction.

* 5.1.2 TheWayofSurvey Forum at on- the - spot visit and questionaires were conducted.

5.2 The Objects and Contents of the Survey

5.2.1. The Objects:

In the preliminary period of prof for the project, envirominentalimpact assessmenitgroup together with personnels from the Poverty Alleviation Project Office of the State Council got in touch with people of all walks of life, local administrative senior officials and cadres and masses of the grass - roots to heed of the opinionsand voices of the public during the on -the - spot visits and foumns. The specific vistied objects mainly included local administrative senior officials, peoples of all walks of life, people in religeous conscience, staff of related departments and cadres and masses of grass - roots in the project areas.

Questionairs and foruin in the specific visits were both conducted. The major objects were fanners and township residnets, peoples of all walks of life and staff of departments concemed. The objects of questionaires in all walks of life accounted for certain proportions.

Table 5- 1. The Structucre and Proportion of the Questioners

Surteycyd Profossioial Structurc Sex Nationatity

rrc-nccrs _ 0 ~ ~~~~~p^5r00nslS xncal kczdlt depueico cm,cr prr t Malc Fcnralc *Hui Othiers

NumcgioalberSil) 51 50 38 13 45

* . Prsp.rtion dcpr.-tmcnt _ 98 76 24 10 90

62 Eiji.. . ipual0sbe 100 28 23 8 3 3 89 11 38 mP;ecrtion 28 20 40 3 3 3 89 11 38 62

J.yw Np-Snbr) 130 25 6 65 2 2 88 12 88 12

Proportiol 25 6 65 2 2 88 12 88 12

To.gxL-n (NpUcrnszobitirjl O0 10 218 15 6 6 5 83 17 81 19 Proportion$ . __ | 1 28 -15 6 6 17 81 19

100 17 10 65 1 2 5 85 57 43 . aPrtpornon 17 10 | 65 j 1 2 85 15 57 43 * I - _

Acragc| 35.6 13.52 2.6 2 6 | 84.842|15 2 15.8 548 1.

RP(IC';C:Tbcregiorol P-ople s Cor-rV, StrrdirS Corocricr PPCC:Peop-ICs PolhicolCor.suiati-n Corsnfmcer

49 5.2.2. Contents of Questionaires

In accordance with the project construction, the questioners would subjectively arbitrate the followings: (1). Do you know about the project?'Ibe answers are "know wvell, know, kniow a little and know nothing". (2). Do you think if the project should be constructed? The answers are "soon, delay and cancel". (3). Do you think if the project would produce inipact on the environment? The answers are "tremendously, generally, lightly and no influence".

(4). Do you think the project construction would raise liVing standard of the people in the project areas? The answers are" considerably, greatly, generally and no increase".

(5). 'What do you know about the environmental protection in the project construction? Thc answer are "know well, klnow, generally know and know nothing".

(6). Do you think viich problems should be paid attention to in the project construction? and give some suggestions.

5.3. Survey Results and its Analysis

5.3.1. Dispatch ofthe Questionaires

During the early prof period of the project construction, on April 10, 1996, Ningxia Regional Project Management Office dispatched 500 survey questionaires to Ningxia Regional Governmental organizations concerned, prople of all walks of life and 4 project counties. At the expiration of June 10,1996, 451 survey questionaires were be answered and the rate of return is 90.2%.

Table 5-2 Statistic Table of Surey.Results

Proect .,can proportion 1Propo,rion Proportion Proporticn Proportion Average sc I - Arbitration Proportion inYinchlas in Tn,ir Ln Haipanj in Ji.syusn in xiji as rotal cnce Ps.oet eootcnt dimtictt/s> co'-ty(Yo> e rt'('/%) coisr'y('%) o.'y(5/a) r,escoo(/)

LAttiLld to |Q Qucklyd1. 98 | 899 180 96 98.84 A. irnplernontaton 2. Dea 1 1 3 1. o of the ptoject 3 Canel 2 l3 0.6 1. Know weL 25 19 37 24 14 23. 3

B Understanding 2. Understand 63 6: 48 75 55 60. 8 to the project 3. Ga-raIly 31 18 15 1 28 14. a

.. NOtbing

1.Much 16 | 17 11 . I9 7 20. 0 Understanding to prxt 2. U.deorsta,d 6s L 7 dl 80 59 65. o C (3cllerIcr virulallcrltod 3. 13 1 18 S.*i protection 4. No understanding 9 16 5. 0 1. GtettLY 12 la 5 7 13 9. 4 Whautaiz ue thD project 2. Tnfluenon 53 32 8 16 57 33. 2 . infl-neces on 3. Lishtly 21 25 7 18 13 17. 4 the etwirta~nnt 4. No influence 11 33 80 59 17 40. 0

cptojee 1. Considerablely i9 1 651 66 57 49 57. 0 con3tructien 2. Geratly I7 31 32 30 44 37. 4 E. influonco on the . . 6 uving standard 3.Geneal 4 2 1 S 2.8 of the poOple 4. No infltteno, J 1 0. 4

1. To hope thu proket would to iuspLenec.ted as soon as pcssible; Yo.ur uggestio-s and ecacerne-d 2. To put flcus ott tlie toeIrrcio t raining for Staff; pr-blo. 3. T. intreduox and c.te- ndw techniques; 4. T. strengthen tho pojcet reanage,ntee and rstional utilization for the project fi-ds.

50 * R :; f 5.4. Survey Results and ComprehensiveAssessment

5.4 1. Reflections from the Public in the Discussion Meeting and Specific Visit

(1) The opinions of specialists and scholars

The project is a comprehensive agricultural development one with its major objectives to alleviate poverty of the farners in the mountainous areas. The inplementation of the project would not only improve its natural ecological environment, raise liying standards of people and alleviate poverty; but also have the resources of the project areas exploited rationally, * - promote the coordinating development of fanning, forestry, animal husbandry and sideline industry; make a great progress in education, medical care, science and technoloey, services; transform the povelty and backward conditions and benefirts both the country and people, so it should be put into operation as soon as possible.

(2) Opinions of local administrative officials

The implementation of the project would promote the production development in the project areas, increase income of farner households, improve living standards and basically solve thc poverty problems. Meanwhile, in the project implementation, mountains, rivers, fields, forests and roads would be put in order. The ecological environment would become better gradually. The vicious circle of poverty and environment would be escaped. After the completion of the project, medical care and education levels would be upgraded considerably in the project sites. The improvement of drinking water facility for fanners and ainimals and traffic facilities can promote the overall development of economy, enhance quality of population in the project sites. We are glad to make constributions to the project construction.

* (3) Opinions of people of ali walks of life

The members of the Regional People's Congress Standing Committee and People's Political Consultative Conference and people of all walks of life took care of the project and gave supports to the project construction. Ihey put forward some suggestions on the existing problems in the implementation of the project and they show great concern over the project construction. The poveity alleviation work should be carried out as an inportant task to maintain close ties with the masses.

(4) Opinions of people in religeous conscience

The project areas are the places vwhere Hui nationality live in compact communities. The inmams expressed active and heartfelt support over tie project construction and helped the govenmment make good preparations for the project construction.

(5) The reflections fromtisocial organizations

The comrades fi-omiRegional Women's Federation expressed that they are veiy had to the constructioni of the project, they have been looking forward to the start of the project as soon as possible. After the imnplementation of tde project, the poverty and backwar-d conditions in the project sites would be tranlsformed and living standards would be upgraded. It is good to create employment opportunities for women and raise the women's social position. They would take active part in the project activities, and rural economy would be developed througlh their hard work.

51

. The comrades from the Conuntiist Youth League expresed that the implementation of the project would create opportunities of new life for them and they are the main force in the project construction and they would devote themselves into the project construction. 5.4.2 Survey results from questionaires

(1) The consciousness of the public participation in thc project construction is strong, the return rate of the questionaires is 90.2%

(2) The persons participating in the questioniaires are from all waLks of life. 40-65% of them is farmer beneficiaries, 20% of them is technicians and 2-5% is members of the Regional People's Political Consultative Conference. The opriions of people of all walks of life were taken into fully consideration.

(3) Population of Hui nationiality and women accounts for large proportion of the participants and 40 - 88% is Hui nationality and 20% is women.

(4) In the question "do you know Qinba project?" 60.8% of persons chose the answer "know", nobody chose the answer "don't know".

(5) In the question "do you think if the project should be constructed?" 98.4% of the persons chose the answer "quickly" which reflects the desire and request of the public for the project construction in the ptoject sites.

(6) In the question "what do you know about the envoronmental protection in the project construction?" 65% of person chose the answer "know".

(7) In the question 'What do you think of the project influence on the environrment?" some people didn't give the answer, but 40% of persons thought no influence. This shows that the consciousness of people to the environmnetal protection should be enhanced.

(8) In the question "do you think that the project construction would raise living standards of people in the project sites?", 57% of the persons chose the answer "greatly". This shows that the people in the project sites put their hopes on implementation of the project.

(9) In the question "do you think which problems should be paid attention to?", only 8% of them answered this question. The most concerned one is "would the project be executed as early as possible?" and "to strengthen the management of fmds and make the people in the project sites really benefit from the project". The typical suggestions included putting focus on the technical training for staff and strengthening extension and application of new techology. these answers show the positive attitude ofthe public to the project.

5.4.3. Comprehensive assessment ofthe public participation

People in the project sites have been looking forward to the project construction. They have a strong desire for the project construction. They arehighly enthusiastic and confident oftheproject. The implementation oftheproject can be guaranteed in forceful support of NPC,CPPCC, the Poverty Alleviation Office of the State Council and global community, under the elaborate organization and management of local goverment, with the guarantee of specific policy and regulations, with the great concern and cooperation from all walks of life and participation of the public, with hard efforts and strong expectation of numberous beneficiaries and the masses in the project sites.

52

. 5.4.4. Suggestions: The survey results mentioned above show that Qinba Mountains provety alleviation World Bank Loan Project has beeb comprehendedby the public in the project areas with hard work and great eofforts of PMO staffmembers at various levels

* 0: 000 and has universal social basis. We suggest the project should be implementedas possible.

S

*05

.

53

. 6. The Analysis of the Profit and Loss of Envir onlmental Economlly

6.1 The Pr-inciples of the Analysis

Qiniba Project is the comprehensive deve]opmenit one of apgiculture and also the one of the environmnental system. The development of the project not only improve the natural biological conditions but also prevenit the water and soil fioim losing and prevent the farmland from becominig sandy one. It woould lay a solid fotndation for the sustainable developmemit of ag-iculture. So the analysis shoutld be follow the following principles according to the produce characteristics: (1). Take the natural environminent as a kind of resource, adopt the methods of system engineer ing to appraise the tlutl value of the enviromnental economy of the project and also to evaluate the actual cost (2). The investment made in the project environmental protect is for obtaining the greater benefit, not for covering the unfavourable influence of the environment created by the pr oject development (3). According to the objectives of the envirounoent and the social economy, evaluate the investment and the cost of the environimental protection, carry out the comparison between the present status of developed irrigationl areas and the area to be developed by the project and judge the iniprovement of the environiment and its cost duriing the project implementation anid also the feasibility of various environmiental tneasumes.

6.2 The Method of the Analysis

The analysis would be carried out according to the principle of system engineering and the method would be adopted to analyze the enviionment cost and the input and output The environment investmsent fos all project constuictioni and the benefits created by it would be analyzed. the emphasis should be placed on the tuiity of the economiic, social and ernvironimental benefits diuring the project implemiienitation and make the project develop coordinately.

6.3. The Project Investmenet.

6.3.1 The Investmient Composition: thetotal investment is 29S.8 million yuan, of wshich the basic find is 229.84615 million yuan, the price and physical contingenicies are 68.95385 million yuan. . The domestic fund collection Financial resources amount ( yuan) Percentage Total 149400000 100 ThlueeWest " fuLnd 49210602 32.94

Workforfood fund 28600233 19.14 Poverty alleviation fund 50736484 33.96 Goveniment fund 7182482 4.81 Workdays conversion 13670199 9.15 .

6.3.2 The Investment of Sub-projects.

The total investment is 298.8 million yuan, among which the investment of agriculture development is 190.4706 million yuan, accounting for 63.75% of the total; the investment of rural enterprises is 23.95823 million yuan----8.02°o of the total; the investment of the ruLal infrastructure is 72.92442 million yuan, accoimting for 24.41% of the total, the

54

. investment of the poverty and project monitoring is 5.61806 million yuan ---- 1.91% of the total, the investment of organization establishment is 5.82869 million yuan---- 1.98% of the total.

6.3.3. Scheme of Annual Investment:

The construction period of the project is 6 years, and the investment would be arranged in 6 years. The first year :46.723 mnillionyuan accounting for 15.65% of the total , the second year: 60.56003 million yuan ----20.28%; the third year: 58.97586 million yuan ---- 19.73% the fourth year: 59.05199 million yuan----19.76%; the fifth year: 44.1-1843 million yuan----14.76% and the sixth year 29.3707 million yuan----9.83%.

The schedule of the project investment estimate and the annual plan of funds

Item |rotal(yuan) The annual plan of fund 1997 1998 1999 2000 2001 2002 Agriculture 144350586 19667720 25955109 28970309 30922032 22044673 16790743 development Rural enterprises 18157051 4429047 6587039 2406400 1182078 2040940 1511547 liftastructure 88266714 7903428 10173272 12552427 11996993 8974156 36666438 Monitoring 4321588 1553960 1642485 410985 404985 154585 154588 rganization 4483610 1906610 1586000 367000 257000 227000 140000 establishment Directcost 226579539 35460765 45943905 44707111 44763088 33441354 22263316 Aanagementcost 3267746 480003 640731 659937 661647 495897 329531 Basic cost 229846155 35940768 46584636 45366048 45424605 33937251 22592847 physical & price 68953845 10782230 13975391 13609814 13627381 10181175 6777854 contingencies total costs 29g880000046722998 60560027 58975862 59051986 44118426 29370701

6.3.4 The investment of counties respectively in Ningxia project areas

Investment table of counties in Ningxia project areas

County Total investment (yuan) Percentage in the total (%) Total 298800000 100 Xiji 82265960 27.53 Haiyuan 81596429 27.31 * Tongxin 8152S038 27.29 Jingyuan 47172015 15.79 Region 6237560 2.08

. 6.4. The Project Benefits.

The total investment to fixed assets in the project area will be 23S.00441 million yuan. In the 20 years, the actual production period would be the depreciation years. The total depreciation expense would be 214.20396 million yuan. The * scrap value of the fixed assets would be 23.80045 million yuan in the 20th year.

55

. The onlet interest of the World Bank loan is calculated on the basis of 2 %. During the calculated period, the total interest accruing from the World Bank loan would amount to 33.5481 million yuan.

6.4.1 Analysis of Input-Output

The analysis was made on basis of the main substantial input and the product marketing. The current prices by the end of 1996 was adopted to estimate and analyze the price of the substantial input. The prices at the producing places by the end of 1996 was used to analyze the product prices.

In the production period, the annual sales revenue from the productive items would amount to 335.67769 million yuan with an annual cost of 189.2016 million yuan and a net income of 146.47609million yuan.

The financial cash flow of the project is estimated on the basis of the input and output in the project area. The analysis of the financial cash flow is made on the basis of 20 years.

3. The comparison between the objectives and the present situation

Item Objectives Present Gap Per capita grain share 300 148.6 151.4 Per capita net income 500 267 233 Per capita cultivated land 2.0 1.28 0.72 Household with practical skill 90% 21% 69%_

6.4.2 Accordingto the feasibility report, the financial internal rate of retum in the whole project area is 23.80 % and the financial intemal rate of return ofthe productive items is 29.44 %. The saidfinancial internal rate of retum areboth higher than the basic rate of return (12 %). In the project period of 20 years, the accumulative net income would be positive in the 8th year. The net income in the 20 years would be 1652.90964million yuan. By the 10th year, the accumulative net present 0 value would be positive and the total net present value of the project would be 262.98582million yuan.

The analysis of the uncertainties shown that the intemal rate of return are both higher than the discount rate(12%). These indicate that this project is financially resistant to risks.

6.4.3 In accordance with the parameter of the shadow price and the port price of some goods stipulated in the Economic Evaluation Methods and Index of Project Construction issued by the State Planning Commission and the Ministry of Construction, the price adjustment of the main substantial input and outputhas been adjusted and then the economricprice could be calculated.

After the completion of the project, an additional 12664.8 ha of basic farmland would be constructed, including 4062.8 ha irrigated with water-saving techniques, 146 ha irrigated by wells, 7916 ha of terraced farmland, 540 ha of new land from small rivers control, 9770 ha of low and middle yielding land improved and 716 ha of fruit trees. The project would help to feed an additional 2088812 livestockand to plant an additional 2782 ha. of perennial forage grass. The project would help promote the productivity of the farmland and enhancethe load-bearing capacity of the land in the project area.

According to the feasible analysis, in the production period, 4.99815 million yuan will be annually submitted to the State in terms of tax. The 44,814 ruxalhouseholds will have an annual average net income of 268143 yuan.

56

. 6.4.4 The Biological benefit of Environment

The project is the comprehensive agricultural developmeent one. According to the local conditions, the implementation of

the project would be carried out in line with the overall plan and diversified economy . The development of the crops cultivation and the livestock raising could inprove the processing industrie.s of agricultural products and sideline products. The resources of sunshine and heat could be used fully and the efficiency of the land use could be enhanced greatly. The biological economy could be tum to the better circulation. * (1). The construction of ten-aced fannland and water cellar for micro-irrigation would not only improve the basic conditionls for agricultural development, but also effectively control the soil-water erosion by intercepting and collectimg surface runoff.

(2). LI the implementation of the project, scientific fanning will be encouraged. Extension service will help to minimize any

l possibilities to the adverse impact to the enviroiunenit due to an increased application of chemnical fertilizers and pesticides. The availability of new plastic fihn would be on the basis of returninig the old one to prevent its injury to soils.

(3). In the construction activities, much attention would be paid to the protection of the existing vegetation. As the project areas are all in the remote poverty-striken villages and the imnplemientation of the project could be carried out in the decentralized way, the environunenit could not be polluted.

(4). In the selection of the items of the rural industrial development, a serious consideration was made to construct only those without or with very little pollution to the environmenit. . (5). Tlhe development of livestock industries will provide agricultujre with a big quantity of bamyard manure in favor of soil fertility, on the other hand, avoid the pollution and enhance the organic contents of the soil.

6.4.5 Social benefit

(1). The project area is a region of Muslin compact community, whlere concentrate the high percentage of the povesty haunted people, and it is the most difficult area in the poveity alleviation action. So the inplementation of the project serves not only to solve the food shortage problems for the area, promnote the comprehensive economic and social development of the mninority, but also to open a way, quite unusual from the traditional ones, for poverty alleviation, and search for a new type of relief mode so as to provide a model for other minorities troubled with poverty.

(2). By the 6th year of the projcct, the income per capita would increase from 267 yuan (by the constant price in 1990) Di 1995 to 550 yuan, and the farmland share per capita would increase over 2 mu. Both the targets of economic improvement 0 and resources exploitation would be reached. The application of fanming techniques would be encouraged. The social benefits and result of poverty alleviation would be significant.

(3) The implemlenitation of the project would lay a fotuldation for continuous development of social economy in the project areas. The productive progress of the project would encourage tde farmers to be more active in farming. The imiplemiienitationiof the project would generate lots of employment opportunities to the surplus labor forces and especially to women. The training scheme vwould amount to 451410 person-time, including 45000 person-timne of farmers in applied teclhiques and 1410 person-time of management staff and teclusicians at Regional-, coumty- and township-leveled organizations short-term or long-tenn both abroad and at home. . (4). hle project wvould lhelp solve the problemn of drinikinig water shortage for 9128 people, 2277 big livestock and 2387 sheep/goats.

,57 6.5 Tbe Investmenit of the Environimental Protection

According to the investment aiticles of the environimental protection stipulated in the Design Regulationis of the Environmenet Protection issued by State CoLunciland the Envu-onmental Protection Burcau, the estimate would follow the followvinginvestment estimate of environmental protectioni.

(1). The forests plantitg. the grass pgowinig, the development of the rural enterprises, the environmental contirol and the drinking water works etc. would be inchlded in the investment of environrental protection. (2). 'The cost of old plastic mulch recover'v and disposing of should be included in the investment of the environmllental protection. (3). The monitoring of enivirorunenit and the maintenance cost of the environDment should be incluided in the investmlent of the environmental protection. According to what said above, the investment made in the environmental protection would be 4%--6°o. of the total investment of the project . This proportion is lower than the standard of 10% of the project sensility analysis and could not eflect thle implementation of the project.

6.6. Concilusioni

(1). After the implementation of the project, the net revenues from the products produced by the project would reach 146.7609 niillion Yuan and the financiaL intemal rate of return in the wvhole project area is 23.80 % and the financial internial rate of return of the productive items is 29.44 %. The said financial intemal rate of return are both highet than the basic rate of return (12 %).

(2). Analysis of UJnceitainties slhowvedthat the said intenmal rate of returpn are both higher than the basic discount(12%). These indicate that this project is financially resistant to risks.

(3). The project could make great contributions to the coLutry and about 4.99815 million yuan will be annually submitted to the State in terms of tax. The 44,814 rural households will have an annual average net income of 2681.43 yuan.

So the project could combine the social, economic and environmental benefits efficieently through the effective execution of all sub-projects and make the project develop coordinately and provide the guarantee for the sustained development of the project operation.

0

.

5g 7. Analysis of EnvironmentalRisks

As a comprehensive project for both poverty alleviation and sustainable development, this Qinba project for poverty alleviation is covering multiple disciplinaries, tradeslindustries and districts. The project is composed of crop cultivation, animal husbandry, rural enterprise developmentand other productive components.The constructionof the project is subject to both the influences of socialleconomic conditions and natural features. Since the construction period is long, there are many uncertainties. Therefore, much attention should be paid to economic development, social progress and environment * rehabilitation in the implementation of the project.

7.1. Environmental Risks

The environmental risks are mainly related with agricultural developmentproject, which is more susceptible to climatic conditions. Located in the mountainous areas of southem Ningxia, the project area lies in the transition between arid and semi-arid areas. The natural conditions are poor and the ecological environment is harsh. Natural calamities happen frequently. In particular, the rain-fed farming area suffers from frequent drought, flooding, low temperature and hails. In recent years, the project area suffered from a biggest drought in 100 years: The development of crop cultivation, animal * husbandry and fruit trees has been seriously slowed dowA.

In order to reduce the environmental risks, the principle of suitable species at suitable places was followed in the selection of the crops. The selected crops are adapted to the local conditions in the long time of traditional farming and there is a ready experience in the cultivation, the crops such as flax, potato, beans, Chinese onion, apples, Chinese red dates and * almond apricots. Necessary technology will be applied in the cultivation of maize and rapeseed, since they are susceptiveto climatic conditions. Therefore, the production loss from climatic calamities can be reduced.

7.1.1. Climatic Influence on Crop Cultivation

The worst climatic influence on crop cultivation in the project area is drought,which can reduce the yield and sometimes can even destroy the crops completely. Wind-blowing can be listed as the 2nd worst, which causes crop lodging. Therefore, the selected varieties should be characterized by drought tolerance and lodging resistance. The application of mulching technology will not only solve the problem of heat deficiency in the cold-humid highland zone, but also the problem of * water shortage in the and and semi-arid areas.

7.1.2. Climatic Influence on Fruit Trees Drought, sand-blowing and late frost are very injurious to fruit trees. Therefore, varieties with drought resistance and cold tolerance should be selected. Micro-irrigationfacilities (e.g. water cellars) will help solve the problem of water shortage.

7.1.3. ClimaticInfluence on Animal Husbandry

Drought and coldness are 2 of the importance restrictive factors to the development of animal husbandry. In particular, when there is a big drought, the production of grassland is sharply reduced and cause problem of forage deficiency. Livestock are susceptiveto suffer from cold winter.

7.1.4. Influence of Pests

* Ihe development of crop cultivation, fruit trees and animal husbandry can all be restricted more or less by pests and diseases. Therefore, in the growing period of crops and fruit trees, pests and disease should be closely monitoring and

59 forecasting. In animal husbandry, much work should be done in vaccination and epidemic prevention as well as sanitation of animal houses.

7.1.5. Climatic Influence on Soils

The influences on soils are land desertification, water erosion and soil loss, Wvhichare reducing the accumulation of organic matters in soils. In particular, the construction activities should avoid raining seasons. In addition, much effort should be made in afforestation.

7.1.6. In the implementation period, it is required that the reclaimed land should be timely utilized to prevent land desertification.

7.2. Countermeasures

Under the actual natural conditions, the capacity against environmental risks mainly depends on the countermeasures against drought and coldness. The selection of the project activities is focusing on overcoming the restrictive factors in the project area. Foe example, the construction of terraced farmland and the application of mulching technology are to overcome the negative influence of drought and coldness by means of the improvement of water retaining capacity of the soils. Micro-irrigation with water cellar is to make a better utilization of the rainfall resources in dry farming. All these will effectivelyhelp build up the project capacity against environmental risks.

0

60~~~~~~~~ 8. SubstitutteSchemle

This project is aiming at poverty alleviation through steady measures to solve the problems of food sholtage and cloths insutficiency and to create steady income sources for the farmers in the project covering area. With the help of the project investmeint, the overall objective will be reached by (1) through increasing soil improvement, technical extension and the increase of the acreage of higli yielding crops to increase grain production; and (2) through increasing the acreage of econoinic fruit trees and the development of livestock to generate steady sources of income for the farmers. As a result, the overaU social and economic progress in the project counties will be accelerated. Thcrefore. it is difficult to fine a veiy optimiun overall scheme to reduce the negative environmenital influence in the determination of project site, construction scale and the exact activities. However, under the analysis of the design of the project components, the following substitute scheme can be found out:

(1) Agricultural Developiiment Project

Upon a careful review, it was fowsd out that the intetnsity of the utilization of the forage resources iu the livestock project in Xiji County was too strong, and there would be a contradiction between the supply and demands of the rural energy. It is * recoiiunenided that the production scale should be timely justified in the annual imnplementation plan, while a strengthened effort is made in the construction of artificial grassland.

There is no doubt that the application of mulchinmgtechnology in inaize cultivation is very necessary. However, in a big- scaled cultivation of tnulched maize, the following consideration should be made: (1) whether the improved air temperature and soil temperature can reach the necessary elongation of the frost-free period? (2) If the soil moisture cannot be recharge by rainl, whdether the soil moisture can meet the water requirement of the crops? (3) In a big-scaled application of mulching tecr1onkigy, much attention should be made to prevent the "'white pollution of the plastic filn.

(2) Rural Enterprises Development

- Upon a careful review, it was fotuid out that the proposed production capacity of the fine starch powder plant in Xiji Cotimty would amosuit to 5,000 tons/year, which would not reach the economic justified poinit. It is recommended that the production capacity should be increased upto 12,000 tons/year. In this way, more farmers will be benefited by the project.

O It is a waste of the resoiurces for the fine starchI powder plant to drain directly the waste water that contains much protein. From the point of view ctean production, it is recommeended that the protein in the waste water can be extracted by air-float technology. In this way, the resource is saved and the pollution is reduced.

• The construction of the sheep wool flannelette plant in Xiji County is a project compotlent with less inlvestment and quick economic return. It is recommended that this component should be included in the implementation plan of the project.

• Tne construction and extension of some carpet making plant will generate more employment opportunities for womeln. Therefore, it is recommended.

e In the lineni processing plant in Xiji County, the wastc watcr ffoiomretting step contains miudcsorganic matters amidit is warm, It is recommcnded that the water can be purified by fartnland treatment system, it is also recommended that some gr-cenhouse can be constructed near the plant to utilize the water temperattu-e.

61 a Upon a carefuil review, it is found out that theie were some mniustified items in the procedu-e designs of both the fine starch powder plant and linen processing plant in Xiji County. It is recommended that a furtherl checking -,ill be needed before the implementation of the pr oject firom the point of view of clean produiction.

0 It is recomlmended that the construction of degradationi plastic film plant will be added into the riural enterprise developmnenitproject.

(3) IufrastrctuLre Constiiction

The construction of micro-irrigation wells is one of the important measures to solve the problem of drinking water shortage. In some of the water-deficient areas, the monitoring ofthe dynamic status of the underground water should be strengthened.

.

0

62

0 .

9. EnvironmentPolicies and Monitoring

9.1. EnvironmentManagement

9.1.1. RegionalManagement of Environment

All levels of the local govenmnent is responsible for the quality of the regional environment at the corresponding * administrative district. Ningxia Environment Bureau is responsible for a unified supervision and management of the environment in Ningxia territory. The key issues to be dealt with are:

* To establish a system of responsibilityin the regional protection of the environment for a sustainable development in the project area:-

* To prepare a comprehensiveprogram against desertificationand to strengthenthe construction of protection forests:

* To coordinate the environment management organizationsin the project area, to promote the progress of environment rehabilitation and protection and to improve the utilization and protection of the biological resources such as liquorice and Chinese ephedra;

* At the coordination with the environment management organizations in the project area to prepare management* regulations on the utilization of the mineral resources.

9.1.2. Enviromnent Management in the Project Area

Under the principle that those who exploit the resources are those who are responsible to protect the resources, the environment in the project area will be managed through the cooperation between Ningxia Environment Bureau and the environment management organizations in the project area. The key issues to be dealt with are:

* Carry out the enviroument management policies issued by the Chinese Central Government and Ningxia Government

* * To establish a responsibility system of environment protection in the utilization of the land resources. The activities of abandoning farmland and over-grazing are forbidden;

* To establish a responsibility system of rural energy supply and prepare practical plan of coal distribution and an afforestation program for firewood forests. Careless utilization of the plant resources is forbidden. Returning crop * residue to farmland is encouraged;

* To strengthen the coordination among crop cultivation, forestry and animal husbandry and to encourage gardening economy for a better utilization of the natural resources; . * To help construct and develop environment-friendly enterprises, and to encourage intensive production for a better economic return and a coordinated development between rural enterprises and ecological friendly agriculture;

* To unifiedly program the ecological system so as to construct the project area into a ecological-sound district.

9.2. Organizationof EnvironmentMonitoring

63 . .

It is recommended that an environment monitoring network will be established in charge of environment monitoring. The network will be composed of Ningxia Environment Monitoring Center, Yinnan Environment Monitoring Station, Guyuan EnvirommentMonitoring Station, Ningxia Hydrology Center, Ningxia Institute of Water Conservancy, Ningxia Exploration Academy of Agriculture, Ningxia Environment Monitoring Station of Agriculture, Ningxia Forestry Station, Ningxia Grassland Management Station and the other related organizations. No separate organization of environment monitoring will be set up.

. 9.2.2. MonitoringUnderground Water

* The main task is to monitor the quality of drinkingwater,

* The items of water quality to be monitored are: pH, water temperature, total hardness, mineralization, fluoride, sulphate, non-ionic ammonia, As, Hg, Cu. Cd, nitrate, nitrite, bacteria, colon bacillus. The monitoring of the variation of the water table will be in line with regulations on hydrological geology.

* The water quality will be monitored in terms of 2 days every phase and once 1 day. The variation of the water table will be monitored in line with the irrigation phase.

9.2.3. Monitoring of Soil Improvement

- The monitoring will be conducted by Ningxia Environment Monitoring Center, Ningxia Exploration Academy of Agriculture and Ningxia Environment MonitoringStation of Agriculture.

* The items of soil fertility to be monitored are organic matters, total nitrogen, rapidly available nitrogen and rapidly available phosphorus. The items to be surveyed are the applications of pesticides and chemical fertilizers;

* The backgroundvalue of the soils will be monitored regularly as require by the national regulations. The soil fertility will be analyzed upon request.

9.2.4. Monitorinigof Bio - diversity

Conducted by Ningxia Environment MonitoringCenter, monitoringdiversity of animal and plant.

9.2.5. Monitoringofthe Succession of Ecological System

Conducted by Ningxia Exploration Academy of Agriculture and Ningxia Environment.Monitoring Station of Agricutture, monitoring the variations of ecological system.

.

64 10. Conclusioni and Recoinimetndatiota

10.1. Feasibility Analysis of the Project Constrtiction

* Because of the actual natural conditions and the economic features in the project area, the local environunent is in a status of vicious cycle for a long time. Aiming at poverty alleviation, China Qinba Mountains Poverty Reduction World Banik Loan Project is to help solve the problems of food shortage anid cloths deficiency and generate income sources for the fanners in the project covering areas.

* Through ans intensive development in multiple trades/industries, this project is to help the project area alleviate poverty or get rid of absolute poverty.

a Tluhoughthe inprovement of the production conditions, the leading industries are selected for a higher production and better economic return. Through the development of crop cultivation and rural enterprises, not only the problems of food shortage and cloths deficieiicy will the solved, and the overall living standards of the local fanners will be upgraded. As a result, a sustainable capacity of development will be built up for the economic development and social progress of the proiect counties.

Generally speaking, the construction of the project is feasible.

10.2 Coinclusion . (t) This project of poverty alleviation will help to rehabilitate the natural environment and to push the ecological construction iisto a benigi cycle. In the implemtentation of the project, the influence of the project development on the environmenit can be alleviated througlh practical countermeasures. The project will be in favor of the improvement of the environ-mental quality and the establishment of a sustailable development. . (2) The overall arrangement of the project fully reflects the inlterrelation of the project components, which will be of a guiding importance for a comprehensive and justified development of the project.

(3) Tihe project will encourage an affective utilization of the local resources. In the improvement of the productivity of the land resources, a careful consideration is made on controlling water erosion and soil loss.

(4) Tnhetechnical schleme of the project is justified. The selected components will result in little pollution. 'lierefore, it is feasible. . (5) The cvaluation of the project influence on the environment showed that the construction of the project will push the environmenit rlehabilitation and economic developmenit into a benign circle. Therefore, the implementation scheme of Ningxia Project is feasible frosn the point of view of envi-omnent.

* 10.3. Recoiniiemidatiunis

(1) The agricultural developmenit project should draw on the local experience of a successful regulation of small water catclmients and should be coordinated with soil conservationi. Mucl effost should be made on the inprovement of the productivity of the land resources. In the application of mulclhing teclnology for an effective utilization of water and fertility resources, much attention should be paid to collect back the waste plastic fihn. If it is possible, an extenisioni of degradation plastic film is recomunended to prevent ",isite pollutioni. Soil fertility slhould be improved for a sustainable development.

65 (2) Jn the rural enterprises developmenrt project, technology of cleani production should be etended fui a better utiliiatiou of the IesouLces and a decrease of the pollutants.

(3) The development of the project area should be coordinated wviththe development in the adjacent areas.

(4) TIhe supply of rural energy should be carefullly managed to prevent any possible damage to the environmenlt due to firewood shortage.

(5) Detailed research shotuld be conducted on the key restrictive factors against the sustainable development of the project

a eIa.

(6) In the implementation of the project, educationial and techlnical courses should be intenisively organiied to uipgrade the production level anid managernent level of the project.

.

3

.~ ~

66

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