E1114 V. 2 Annex 3

Public Disclosure Authorized Environmental Report/IAIL3

ENVIRONMENT REPORT

Public Disclosure Authorized (HEBEI PROVINCE) Public Disclosure Authorized Public Disclosure Authorized

China Research Academy of Environmental Sciences January 2005 TABLE OF CONTENTS

1. INTRODUCTION ...... 1

1.1. Purpose and Contents of Report...... 1 1.2. Background...... 1

2. OVERALL ASSESSMENT OF ENVIRONMENTAL IMPACTS OF IAIL2 PROJECT ...... 2

2.1. Environmental Issues of IAIL2 Project ...... 2 2.2. Assessment of Actual Environmental Impacts of IAIL2 Project ...... 3 2.3. Summary Conclusions of IAIL2 Environmental Impacts Assessment ...... 7 2.4. Recommendations for Improvement of IAIL3 Environmental Management.7

3. COMPARISON OF ENVIRONMENTAL CONDITIONS AND ENVIRONMENTAL IMPACTS BETWEEN IAIL3 AND IAIL2...... 8

3.1. Comparison of Project Counties (Cities)...... 8 3.2. Comparison of Environmental Conditions...... 11 3.3. Comparison of Project Contents ...... 13 3.4. Main Conclusions...... 16

4. CLARIFICATION ON PREPARATION OF IAIL3 ENVIRONMENTAL MANAGEMENT PLAN...... 16 1. Introduction

1.1. Purpose and Contents of Report

This Environment Report (the Report) for Hebei Province is prepared for the appraisal of the proposed World Bank loan-financed Irrigated Agriculture Intensification Project III (IAIL3, the Project).

The World Bank preparation mission of November 2004 proposed that the environment category of the Project remains to be type B due to the similarities between the Project and Irrigated Agriculture Intensification Project II (IAIL2) in terms of project areas and basic contents. In order to simplify procedures the Bank no longer requires to review a full environmental assessment report for the Project, but requires to 1) assess the actual environmental impacts of the IAIL2 Project; 2) compare the environmental conditions of IAIL3 and IAIL2; and 3) prepare environmental management plan by Project provinces.

In compliance with the above requirements the main contents of the Report include:

1) Overview of the actual environmental impact assessment of the IAIL2 Project Hebei Component; 2) Comparison of environmental conditions and contents between IAIL3 and IAIL2 in Hebei; 3) Clarification on the preparation of Environmental Management Plan for IAIL3 in Hebei; 4) Hebei Project Area Environmental Management Plan (attached to the Report).

1.2. Background

Since 1998 the IAIL2 Project had been implemented in 27 cities and counties of Hebei’s four municipalities, including Tangshan, Qinhuangdao, Cangzhou and Hengshui. The project was completed as scheduled in end 2002.

Project implementation has improved local agricultural productive conditions, promoted agricultural restructuring, increased farmers’ income and improved the level of agricultural technologies, thus achieving remarkable economic, social and ecological benefits. To this end, the State Office for Comprehensive Agricultural Development (SOCAD) has decided to continue to implement the IAIL3 Project in the above five provinces.

1 Entrusted by SOCAD the China Research Academy of Environmental Sciences has undertaken to conduct environmental impact assessment (EIA) for the Project and prepared the Report according to the requirements of the Bank preparation mission.

2. Overall Assessment of Environmental Impacts of IAIL2 Project In June 2004 SOCAD prepared the “Environmental Management Report for the Irrigated Agriculture Intensification Project II” to be as one of the IAIL2 ICR supporting documents (Reference Document 1). The report summarizes and evaluates the environmental management work, status of implementation of relevant environmental covenants in the Loan Agreement and the actual environmental impacts following project implementation. The Report only outlines the actual environmental impacts of IAIL2.

2.1. Environmental Issues of IAIL2 Project

The main objectives of the project were to increase agricultural production and farmers’ income through improvement and rehabilitation of the existing irrigation facilities in the project areas. Main project components include canal lining, constructing on-farm works, rehabilitating existing and building new pumping stations and tube wells, land leveling, improving field passageways and building field drainage network and windbreak shelter belts. The project did not involve the construction of new reservoirs and new main and branch canals. In March 1997 the Bank preparation mission rated the project as Category B in terms of its environmental impacts.

Based on the EIA report of IAIL2 the Project Appraisal Document (PAD) specified that there were no significant environmental issues under the project and, the important environmental issues included likely groundwater overdraft and likely soil salinization, and other issues included the environmental impacts of construction activities and control over the application of pesticides and chemical fertilizers, etc. These issues are shown in Table 2-1.

Table 2-1: Environmental Issues Involved in Project Areas of Hebei

Environmental Significant Important Other Environmental Issues Issues Environmental Environmental Issues Issues Likely groundwater Impacts of construction activities; overdraft; Control over application of pesticides Main Contents None Soil salinization in and chemical fertilizers some project areas

2 It was confirmed there were no environmental issues resulting from dam safety and diversion from the Yellow River for irrigation.

2.2. Assessment of Actual Environmental Impacts of IAIL2 Project

2.2.1. Significant Environmental Issues

Evidences of project implementation in Hebei Province have verified the conclusion in the Bank’s PAD of “the Project doesn’t involve any significant environmental issues”. The project did not see any of them during its implementation and will unlikely see any either in the future.

2.2.2. Important Environmental Issues

I) Groundwater Resources Protection

During project implementation Hebei Province had fulfilled the requirements of the Bank Loan Agreement, including:

1) No new wells were built in groundwater overdraft areas; 2) Permits were obtained for driven well for use of groundwater; 3) Depth of all newly drilled wells did not exceed 50 meters; 4) Groundwater monitoring was conducted. In addition, the significance of comprehensive water saving (“real” water saving) was stressed during project implementation through implementing a series of measures including engineering, agronomical and intensified water saving measures, which has produced remarkable water saving benefits with improved water use. Estimations show that after construction of anti-seepage canals water use rate rose from the original 43% to 70% while the rate for anti-seepage pipes and sprinklers reached over 95%. Project implementation has to some extent relieved the trend of groundwater overdraft and declining groundwater table due to a series of water saving measures taken. However, project implementation in Hebei coincided with the drought cycle, when precipitation was much less than normal for consecutive four years 1999-2002). Annual rainfall was about 20-40% less than the multi-year average, as shown Table 2-2.

Table 2-2: Statistics of Precipitation in Project Areas During 1998 to 2002

Annual average precipitation (mm) Difference (mm) 1998 1999 2000 2001 2002 5YA MYA (mm) 621.0 366.8 521.9 490.9 366.9 473.5 597.8 -124.3 5YA= five-year average; MYA=multi-year average 3 Due to less precipitation more irrigation water was used but such use was within the range of water resources balance. Table 2-3 shows groundwater extraction for Hebei during 1998 and 2002. Table 2-3: Groundwater Extraction in Hebei (1998 – 2002)

Annual Extraction (10000 m3) Annual Five- Average Multi-year year Difference Resources Averag (10000m3) 1998 1999 2000 2001 2002 e (10000m3) Hebe 16,103 23,533 17,545 20,359 25,993 20,707 19,947 760 i Note: The difference is that between five years annual average and the normal available groundwater resources. Positive value indicates that actual extraction is greater than multi-year average groundwater resources.

The above tables indicate although there was much less precipitation in the province’s project areas, the annual average groundwater extraction was only a little more than multi-year average groundwater resources (7.6 million m3 or 3.8%). This explains that project implementation had not produced obvious negative impacts on groundwater resources balance.

However, less precipitation had reduced groundwater replenishment, which resulted in declined groundwater table in the project areas. Compared with 1998, groundwater table in Hebei project areas dropped an average of 2.21 m in 2002.

Analysis on multi-year average groundwater depth indicates drop of groundwater table in the project areas of Hebei remained within the normal range. In wet years groundwater can be replenished and the table will rise. The year 2003 was a normal year for Hebei, when annual precipitation was only 30mm more than the multi-year average value, but compared with 2002 groundwater table rose by 1.24m, as shown in Table 2-4.

Table 2-4: Statistics of Annual Precipitation (1998-2003) and Groundwater Table

Item Average in Average in Multi-year 2002 98-02 2003 98-03 Average Precipitation (mm) 366.9 473.5 628.18 499.3 597.8 Groundwater depth 8.59 7.54 7.35 7.50 6.38 (m)

II) Soil Salinization

4 In the North China Plain (Huang-Huai-Hai Plain), where the project is located, large quantities of groundwater have been exploited for agricultural irrigation since the 1970s, which has caused a general decline of groundwater table. In general, conditions of critical groundwater depth (2.0 meters) for soil salinization have disappeared. Continuous Fresh water irrigation in the project areas has continuously desalted soil. Therefore, secondary salinization could appear only a few low-lying land along the rivers, lakes and coasts as well as few project areas where slightly salty water with the mineralization level 1~2g/L and salty water with the mineralization level of greater than 2g/L were used for irrigation.

Project implementation coincided with drought. Groundwater in the project areas was far deeper than the critical depth for soil salinization, which could not lead to new soil salinization.

During the implementation of the project, Hebei conducted continuous monitoring on soil salinity in its project areas. The monitoring results show that since project implementation no soil salinization problem had occurred in the project areas.

2.2.3. Other Environmental Issues

I) Impacts of Construction Activities

Most of the works under this project were excavation and construction of laterals, structures and pumping stations. These works were small and relatively simple and scattered. Most of the activities were undertaken in already developed farmland areas and the construction period was short (generally within half a year). Therefore, environmental problems related to project construction were minor and the impacts were tiny.

In addition, during project implementation, for construction of relatively important projects the contractors were required in the contracts to comply with relevant national and local laws, regulations and standards on environmental protection, sanitation and epidemics control and the Engineers were entrusted to supervise the contractors. Therefore, construction of all civil works caused neither major environmental problems nor significant public health problems or public complaints.

II) Control of Fertilizer and Pesticide Application

During project implementation, IPM technologies were widely adopted in the project areas. The integration of disease-resistant varieties promotion with application of pesticides with high efficiency, low toxicity and low residue and bio-pesticides replacing original highly toxic pesticides had effectively improved farmland eco-environment in the project areas. Table 2-5 compares the use of pesticides and chemical fertilizers during and before the project.

5 Table 2-5: Changes in Application of Pesticides in Project Areas of Hebei (%)

Reduction of Pesticides Per Reduction of Highly Increase of Bio-pesticides Unit Area Toxic Pesticides 47 94.3 82.5

In response to the deficit of phosphate and potassium, particularly potassium, the project provinces carried out a number of measures during the implementation of the project to balance soil fertility, i.e. control of nitrogen (reducing nitrogen application in some project areas), stabilizing phosphate (increasing phosphate application in some areas) and supplementing potassium. Changes in soil fertility in project areas between 1998 and 2002 are summarized in Table 2-6.

Table 2-6: Changes of Soil Fertility in Project Areas between 1998 and 2002

Without Project With Project N P2O5 K2O N P2O5 K2O 1 0.3 0.25 1 0.4 0.3

In addition, advanced fertilizing techniques were disseminated in project areas, such as deep application, mixed application, etc., thus increasing fertilizing efficiency, lowering loss of chemical fertilizers and reducing the negative impacts of irrigation run-off on receiving water bodies. Hebei Provincial PMO conducted environmental monitoring for five consecutive years on the project’s environmental impacts project implementation. Table 2-7 summarizes basic environmental monitoring conclusions.

Table 2-7: Basic Conclusions of Environmental Monitoring

Items Evaluation Conclusion

1. Environment Quality 1) Surface irrigation In general, the quality was good and improved year by year. water quality Water met irrigation requirements. 2) Irrigation run-off The quality met the requirement of irrigation with quality comprehensive pollution index decreasing year by year, no significant negative impacts on receiving water bodies. 3) Groundwater Quality was good and stable. Secondary mineralization found quality only in a few spots. 4) Soil pollution Soil quality was good with single and comprehensive pollution indices decreasing. 5) Farm produce Good quality farm produce, which met relevant national quality contamination standards. 2. Groundwater 1) Groundwater table Groundwater table lowered (1-2m), but within normal range. 2) Groundwater Slightly overdraft extraction 3. Soil Fertility Soil fertility increased with more rational composition of N, P

6 and K. The above results indicate that due to effective implementation of various environmental protection measures, overall environment quality was rather good and improved year by year. Project implementation has not imposed any significant negative impacts on the environment. Therefore, the project is environmentally sustainable.

2.3. Summary Conclusions of IAIL2 Environmental Impacts Assessment

Table 2-8 summarizes the actual assessment of environmental impacts of IAIL2.

Table 2-8: Summary Conclusions of Environmental Assessment

Items Status of Completion/Assessment Conclusion Significant Environmental No significant environmental issues occurred. Issues Important Environmental Issues 1) Groundwater overdraft Comprehensive measures were taken to prevent excessive exploitation. Groundwater resources within balanced range. 2) Soil salinization No soil salinization was found. Environmental Monitoring 1) Environment quality Five-year monitoring shows improved environment quality. 2) Groundwater table Groundwater table dropped by 1-2 m due to serious drought, but within the normal range.

3) Soil fertility Monitoring results show improved soil fertility and composition of N, P and K. Other Environmental Issues 1) Environment management Relevant laws and rules were observed during during construction construction. No important environmental problems emerged. 2) Control of pesticides and IPM and balanced fertilizing reduced pesticide chemical fertilizers residue and loss of chemical fertilizers.

2.4. Recommendations for Improvement of IAIL3 Environmental Management

Based on the lessons learned from IAIL2 in terms of environmental management practices improvements should be made in the following aspects:

7 1) IAIL2 EMP was not so specific and IAIL3 EMP should be more targeted and applicable; 2) IAIL2 didn’t focus on water saving and water saving objectives should be clearly set for IAIL3; 3) According to the environmental practices of IAIL2 methodologies and contents of environmental monitoring for IAIL3 should be adjusted as appropriate.

3. Comparison of Environmental Conditions and Environmental Impacts Between IAIL3 and IAIL2

3.1. Comparison of Project Counties (Cities)

3.1.1 Comparison by Administrative Division

Table 3-1 lists the project cities and counties of IAIL2 and IAIL3 and Figure 3-1 gives the location of IAIL2 and IAIL3 project cities and counties.

Table 3-1: Comparison of IAIL2 and IAIL Project Areas in Hebei (by Administrative Division)

IAIL2 Project Areas IAIL3 Project Areas Municipality County (City, District) Municipality County (City, District) Leting, Luannan,Qian’an, Yutian, Leting, Luannan, Qian’an, Tangshan Zunhua, Qianxi, Fengnan, Tanghai, Tangshan Yutian, Zunhua Fengrun, Luanxian Qinhuangdao Funing, Changli, Qinglong, Lulong Qinhuangdao Renqiu, Wuqiao, Botou, Renqiu, Wuqiao, Botou, Cangzhou ongguang,Cangxian, Hejian, Cangzhou Dongguang,Cangxian Qingxian, Nanpi Jizhou, Zaoqiang, Jingxian, Jizhou, Zaoqiang, Jingxian, Hengshui Hengshui Taocheng, Gucheng Taocheng Xinji, Jinzhou, Wuji, Shijiazhuang Shijiazhuang Zhengding Anci, Guangyang, Weifang Weifang Yongqing, Wen’an Note: Bold ones refer to new project cities and counties.

Table 3-1 indicates that among the IAIL3 Project spreads in 22 counties/cities from five municipalities, of which 14 counties/cities are former IAIL2 project areas, four each are within the new project municipalities of Shijiazhuang and Langfang..

8 9 Figure 3-1 Project Areas of IAIL3/IAIL2 in Hebei Provine

IAIL2 IAIL3

10 3.1.2 Comparison by Irrigation Districts

Table 3-2 lists the irrigation districts under IAIL2 and IAIL3. As shown in the table, 14 counties (cities) are within the IAIL2 project scope, which belong to well-canal combined irrigation districts. Some of the four counties of Shijiazhuang belong to well irrigation districts and four counties of Langfang belong to Yongding River Irrigation District, a well-canal combined irrigation district. Table 3-2: Comparison of IAIL2 and IAIL Project Areas in Hebei (by Irrigation District)

IAIL2 IAIL3 Irrigation District County (City, District) Irrigation District County (City, District) Xinji, Jinzhou, Wuji, Well ID Well ID Zhengding Jiyun River ID Yutian, Zunhua, Fengrun Jiyun River ID Yutian, Zunhua Qian’an, Luannan, Leting, Luan River ID Luanxian, Qianxi, Fengnan, Luan River ID Qian’an, Luannan, Leting W Tanghai, Changli W e e l l l Qinglong l Qinglong River - -

C Qinglong, Lulong C

a River ID a ID n n a a

l Yang River ID Funing l Yang River ID C C o Baiyangdian o m Renqiu, Hejian m Baiyangdian ID Renqiu b ID b i i n n e Botou, Cangxian, Dongguang, e d d Botou, Cangxian, Dongguang,

I Yellow River Wuqiao,Jizhou, Jingxian, I Yellow River D D Wuqiao, Jizhou, Jingxian, Diversion ID Taocheng, Zaoqiang, Gucheng, Diversion ID Taocheng, Zaoqiang Nanpi, Qingxian Yongding Yongding River Anci, Guangyang, Yongqing,

River ID ID Wen’an Note: Bold ones refer to new project cities and counties. *Refers to Yellow River diversion IDs.

3.2. Comparison of Environmental Conditions

Table 3-3 below compares the agro-natural environment of new IAIL3 project areas (Langfang and Shijiazhuang) and those of IAIL2 (represented by Cangzhou and Hengshui), including climate, topography, soil, hydrology and geology, irrigation water resources and agricultural division.

As indicated in the table that the new project area of Langfang is very similar to Cangzhou and Hengshui of IAIL2 in terms of natural conditions. Situated on the Hai River Alluvial Plain with two crops a year, of whom Langfang and Cangzhou are located in the northern part of the plain with subhumid moisture soil and salinized soil and Hengshui is located in the southern part with semi-arid moisture soil, yellow moisture soil and salinized soil. Furthermore, their hydrological and geological conditions are very alike. In terms of irrigated water use the three municipalities all belong to well-canal

11 irrigated districts, but irrigate mainly with groundwater.

The new project municipality of Shijiazhuang is similar to its neighbor Hengshui in terms of natural conditions. According to “Comprehensive Natural Division for Agriculture of Hebei” Shijiazhuang project area belongs to warm and temperate two-crop a year zone situated on the plain in front of the Taihang Mountain. The municipality is basically irrigated with groundwater since there are no suitable surface water sources. According to the hydrological and geological conditions in the project area, the first layer of shallow groundwater has dried up and the second layer groundwater is no being used. Compared with other project areas, Shijiazhuang has less annual precipitation (400-500mm) and is short in water resources, where groundwater has been seriously overdraft in some sections. It is one of the IAIL3 environmental management objectives to relieve and improve the groundwater overdraft situation in Shijiazhuang project area through implementing comprehensive water saving measures.

Table 3-3: Comparison of Natural Conditions of Some Project Areas

Natural IAIL2 IAIL3 Environment Cangzhou Hengshui Langfang Shijiazhuang Rainfall 517-577mm, annual Rainfall 596mm, annual Rainfall 517-577mm, Rainfall 502.9mm, annual Climate average temperature average temperature annual average average temperature 130C 12.30C 11.50C temperature 12.30C Zhengding&Wuji on Dongguang county situated Situated on lake-alluvial Situated on lake-alluvial mountain-flood-alluvial Topography to littoral plain and others plain plain plain, Xinji&Jinzhou on lake alluvial plain lake-alluvial plain Mainly moisture and salinized moisture soil; Mainly moisture soil and Mainly moisture soil and Mainly moisture soil and Soil salinity soil or swamp soil in salinity soil in some areas; salinity soil in some areas; salinity soil in some areas; some areas; soil is thick, mostly light soil. mostly light soil. mostly light soil. sandy and light. Shallow groundwater at Shallow groundwater at Shallow groundwater at Shallow groundwater at layers I&II aquifer are layers I&II aquifer are layers I&II aquifer are layers I&II aquifer are Hydrology and mainly for extraction; fresh mainly for extraction; slightly mainly for extraction; mainly for extraction; all Geology water on most layer I salty water on most layer I slightly salty water on most fresh water. Layer I dried aquifer within exception of aquifer layer I aquifer up Wenwan county Belongs to Yongding Belongs to Yellow River Belongs to Yellow River River ID and Baiyangdian diversion ID, annual use diversion ID, annual use No surface water for ID, annual use 3.415 mil. 29.52 mil. m3 (including 29.52 m3 (including irrigation, all is m3. Shallow groundwater. Hengshui). Low Cangzhou). Low groundwater. High Irrigation High extraction level in groundwater extraction groundwater extraction groundwater extraction Water fresh water areas, low level level, bigger potential in level, bigger potential in level. Short of water for all Resources of and potential in shallow shallow slightly salty water. shallow slightly salty water. areas and serious salty water. Favorable Favorable balance of water Favorable balance of water groundwater overdraft in balance of water resources resources in some areas resources in some areas some areas. in some areas and deficit in and deficit in some areas. and deficit in some areas. most areas.

12 Southern Hai River Plain, a Southern Taihang Northern Hai River Plain, a Northern Hai River Plain, a Natural low alluvial plain, semi-arid Mountain flood-alluvial low alluvial plain, subhumid low alluvial plain, subhumid Division for moisture soil, yellow plain; subhumid cultivated moisture soil and salinized moisture soil and salinized Agriculture moisture soil & salinized area with brown lime soil moisture soil moisture soil moisture soil and yellow moisture loam.

3.3. Comparison of Project Contents

Table 3-4 compares the main contents of IAIL2 and IAIL3.

Table 3-4: Comparison of IAIL2 and IAIL3 Project Contents

Project IAIL2 Contents IAIL3 Contents Works Canal and ditch excavation & dredging, Canal excavation, bridges, culverts and structures, drainage & irrigation pumping other structures, constructing new and stations, agricultural-use power cable, renovating existing pumping stations, Water rural roads, O&M equipment, 1,163 small agricultural-use power cable, rural roads, Infrastructure water storage works (ponds and water O&M equipment, constructing 11water- Construction tanks below 100,000 m3) to be built, 8,903 storage dams, repairing and maintaining tube wells to be repaired & maintained 3,632 tube wells, drilling 12,931 new tube and renovated. No new tube wells to be wells drilled Canal lining, underground pipeline, Anti-seepage canals, low-pressure pipes, Engineering sprinkler and drip irrigation and mobile sprinkler and micro-(drip) irrigation and Water Saving surface hoses mobile surface hoses Land leveling, deep ploughing/soil Land leveling, deep ploughing/soil Agronomical loosening, return of straw to field, loosening, return of straw to field, Water Saving balanced fertilization, training and balanced fertilization, training dissemination Management WUA, SIDD WUA, SIDD Water Saving Improved-variety breeding and Improved-variety breeding and processing, IMP, county agricultural processing, IMP, township agricultural extension centers, township stations for extension centers, township stations for comprehensive agricultural services, comprehensive agricultural services, agricultural machinery, agricultural Agriculture agricultural machinery and service training and agricultural dissemination stations, agricultural training and and extension, green produce, agricultural dissemination and extension, specialized farmer associations, pilot barn and sunning ground renovation, cooperative operations among farmers fertilizer batching plants and dragon-heads Construction of farmland windbreak Construction of farmland windbreak Forestry shelter belts, nurseries, forestry pest shelterbelts, nurseries, forestry pest control control, Training, study tour, technical assistance, Institutional Training, study tour, technical assistance, scientific research and dissemination, Development scientific research, MIS, 4 SIDDs, 23 office equipment and MIS system, and Support WUAs. farmers’ associations (including WUA) Note: Bold parts refer to new additional contents.

13 The comparison reveals that while improving, strengthening and rehabilitating the original irrigated agricultural regions, the main contents of the two projects are basically the same, including canal lining, constructing on-farm works, rehabilitating existing and building new pumping stations and tube wells, land leveling, improving field passageways and building field drainage network and windbreak shelter belts. A review of Table 3-4 finds that there are several major differences in the contents of IAIL2 and IAIL3:

1) Groundwater Resources Protection IAIL3 values more on water resources protection and drilling of new well is not allowed. In the project areas of Hengshui and Cangzhou salty-fresh water mixed irrigation techniques are to be disseminated to protect deep groundwater resources. It is planned to renovate some wells with shallow salty water (extraction of shallow salty water only).

In addition, the number of small water storage works will be increased in IAIL3 Cangzhou, Hengshui and Tangshan (by using the outdated borrow pits of brick and tile plants. They will be used to collect and use rainwater to reduce extraction of groundwater resources.

2) Agriculture

New additional contents under the Project include: 1) “green”(Non-polluted) farm produce; 2) specialized farmer associations; and 3) pilot farmer-dragon head cooperative operations. In terms of component selection, those with livestock breeding, high water consumption, heavy pollutions and use of wild resources are ruled out. Table 3-5 provides the proposed key pilot bases for production of “green” farm produce and the sites for pilot farmer-dragonhead cooperative operations. Table 3-6 lists the proposed specialized farmers associations to be established in the project areas.

Table 3-6: Green Farm Produce Production and Products Farmer-Dragonhead Cooperative Operations Pilots of Hebei

Category Municipality County Name Products Green vegetable Langfang Yongqing Vegetables Green Farm demonstration Produce Green wheat Shijiazhuang Xinji Wheat demonstration Pilot Farmer- Jingyu Vegetable Tangshan Yutian Vegetables dragonhead Zone Cooperative Longhua Cottom Hengshui Jingxian Cotton Operations Processing Plant

14 Table 3-7: Key Specialized Farmers’ Associations to Be Supported in Hebei Municipality County Key Associations for Project Support Nanjianta Town Jingdu Honey Melon Association; Jiuzhou Town Naizifang Guangyang Nuisance-free (Chinese) Chives Association, Fugezhuang Water Melon Association, Hangezhang Grape Association Langfang Anci Geyucheng Trees and Fruits Association Yongqing Yangma Village Vegetable Association; Daxinge Carrot Association Corn Further Processing Research Association, Cotton Farmers’ Yong’an Association Quality Grain Production and Marketing Association, Vegetable Production Wuji and Marketing Association Xinji Xinji City Association of Quality Wheat for Exclusive Use Shijiazhuang Quyang Township Edible Fungus Association, Nanlou Township Yellow Zhengding Peach Association Jinzhou Pear Fruit Industrial Association, Exclusive-use Quality Wheat Association Yutian Weili Village Water Melon Association Zunhua Ping’an Town Edible Fungus Association Tangshan Luannan Changning Town Fruit Agents’ Association Leting Leting Town Nuisance-free (Chinese) Chives Association Qian’an Sweet Potato Industrial Association Anling Town Edible Fungus Specialized Association, Goudianpu Chilly Wuqiao Pepper Specialized Association Xiakou Town Zhangshen Cotton Specialized Association, Qianhong Dongguang Vegetable association, Xiaoluo Grass Association Waliwang Town Pear Specialized Association, Wenmiao Town Date Cangzhou Botou Specialized Association Association for Services Provision to Peach Farmers, Red Date Industrial Cangxian Association Renqiu Beihan (Chinese) Chives Association, Yongfenglu Vegetable Association Taocheng Dengzhuang Township Vegetable Association Jizhou Xuzhuang Township Cotton Association Hengshui Zaoqiang Tangmu Township Farmers’ Cotton Association Jingxian Fruits and Vegetable Production and Marketing Association

As shown in Tables 3-5 and 3-6 the IAIL3 Project aims at supporting the planting, processing and marketing of green farm produce, farmer-dragonhead cooperative operational organizations and specialized farmers’ associations. There are no activities involving livestock breeding, high water consumption, heavy pollutions and use of wild resources and therefore, there will be no relevant environmental issues.

15 3.4. Main Conclusions

Based on the comparison of IAIL2 and IAIL3 projects the following conclusions can be drawn:

1) IAIL3 project cities and counties of Tangshan, Cangzhou and Hengshui are all former IAIL2 project areas and their natural conditions are exactly the same. IAIL3 environmental issues are similar to those of IAIL2 and there are no new environmental issues; 2) Although Langfang is a new project municipality, its natural conditions are very similar to those of Cangzhou and Hengshui. Also because the similarities in their project contents it is predicted that the environmental issues of Langfang project areas are similar to those of IIAIL2 project areas of Cangzhou and Hengshui and there will be no new environmental issues; 3) IAIL3 Project no longer includes the municipalities of Xinxiang, Puyang and Jiaozuo where groundwater resources are short. Therefore, IAIL3 Hebei doesn’t include groundwater overdraft areas any longer; 4) Shijiazhuang is a new project municipality of IAIL3. Since irrigation in its project areas mainly relies on groundwater, groundwater excavation will be intensified and groundwater overdraft will be more serious than other project areas. The most important project objective of Shijiazhuang is to implement comprehensive water saving measures to gradually reduce groundwater excavation and realize the balance of groundwater resources. According to the project plan Shijiazhuang is to lower groundwater extraction year by year and achieve a favorable balance of groundwater resources by 2010. Project implementation will have positive impacts on the balance of groundwater resources in the municipality; 5) The new contents of “green” farm produce, farmer-dragonhead cooperative operational organizations and specialized farmer associations are to plant, process and market their respective local dominant agricultural products and there will be no components involving livestock breeding, high water and wild bio-resources consumption and heavy pollutions. Therefore, new contents will not lead to negative environmental impacts.

4. Clarification on Preparation of IAIL3 Environmental Management Plan 1) According to World Bank requirements the province has prepared a complete and separate IAIL3 Environmental Management Plan to be the attachment of the Report; 2) Since the five provinces under the IAIL3 Project vary greatly in natural conditions and differ in focuses on environmental issues, according to the requirements of the Bank preparation mission separate EMPs by province will be prepared to make the plans more targeted at environmental issues and facilitate their implementation by each of the provinces;

16 3) In view of the successful implementation of IAIL2 and that the natural conditions of the project areas and contents of IAIL3 are basically the same as IAIL2, IAIL3 EMP is prepared based on the experience and lessons learned from IAIL2, which will further improve the EMP for the Project. 4) Compared with IAIL2 EMP, IAIL3 Hebei EMP has got the following features: z Emphasizing groundwater overdraft as the priority of environmental management work in Hebei; z Confirming above everything else environmental issues involved in the Project, based on which the objectives and contents of environmental management are decided, making the EMP more targeted and applicable; z Emphasizing analysis, evaluation and application of environmental monitoring results; z Clarifying environmental management agencies, their respective responsibilities and costs and sources of funding for EMP implementation; z Making necessary adjustments to the items, parameters, venue and frequency of environmental monitoring; z In light of the current model for construction management of physical projects in China, the environmental protection measures to be implemented by the Contractor are summarized and incorporated into the contract in the form of “Rules for Construction Environmental Protection, with its implementation being supervised by the site Engineer entrusted by the Project Management Office (PMO). Environmental protection measures for construction activities will not be detailed in the EMP.

Attachment 1: IAIL3 Hebei Environmental Management Plan

17