Environmental Assessment Report
Summary Environmental Impact Assessment Project Number: 39652 April 2006
People’s Republic of China: Gansu Heihe Hydropower Development Project
Prepared by the Government of Gansu Province for the Asian Development Bank (ADB).
The summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.
CURRENCY EQUIVALENTS (as of 28 February 2006)
Currency Unit – yuan (CNY) CNY1.00 = $0.124 $1.00 = CNY8.083
ABBREVIATIONS
ADB – Asian Development Bank EIA – environmental impact assessment EMP – environmental management plan EMU – environment management unit EPB – environmental protection bureau GEPRI – Gansu Environmental Protection Research Institute GFB – Gansu Financial Bureau HHC – Heihe Hydropower Company HPP – hydropower plant PPTA – project preparatory technical assistance PRC – People’s Republic of China QNNR – Qilianshan National Natural Reserve SEIA – summary environmental impact assessment ZEMS – Zhangye Environmental Monitoring Station
WEIGHTS AND MEASURES
C – celsius ha – hectare kg – kilogram km – kilometer kV – kilovolt kWh – kilowatt-hour m – meter m3 – cubic meter m3/s – cubic meter per second mm – millimeter MW – megawatt S – second t – ton
NOTE
In this report, "$" refers to US dollars.
CONTENTS Page MAPS
I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1 III. DESCRIPTION OF THE ENVIRONMENT 2 A. Physical Environment 2 B. Biological Environment 6 C. Sociocultural Environment 9 IV. ALTERNATIVES 10 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 11 A. Soil 11 B. Water 11 C. Air Quality 12 D. Noise 12 E. Solid Waste 12 F. Flora and Fauna 13 G. Access Roads and Transmission Lines 14 H. Sociocultural Environment 14 I. Induced Impacts 15 J. Cumulative Impacts 15 VI. ECONOMIC ASSESSMENT 17 A. Environmental Costs 17 B. Environmental Benefits 17 VII. ENVIRONMENTAL MANAGEMENT AND ENVIRONMENTAL MONITORING PLAN 18 VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 19 A. Stakeholder Consultation before the Environmental Impact Assessment 19 B. Stakeholder Consultation after the Environmental Impact Assessment 21 IX. CONCLUSION 22 APPENDIX Summary Environmental Management Plan 23
96 o 00'E 106 o 00'E MONGOLIA GANSU HEIHE HYDROPOWER X I N J I A N G U Y G U R DEVELOPMENT PROJECT A U TO N O M O U S R E G I O N IN THE PEOPLE'S REPUBLIC OF CHINA
I N N E R M O N G O L I A N
o o 40 00'N Jinta 40 00'N Dunhuang Jiayuguan 0 50 100 150 200 Jiuquan Yumen Gaotai Kilometers Linze Zhangye . R e Minqin ih e H Jinchang
Minle Wuwei ERLONGSHAN HYDROPOWER PROJECT Gulang N I N G X I A Jingtai Huan Xian Tianzhu Zangzu Zizhixian
Baiyin Jingyuan Xifeng Q I N G H A I LANZHOU Pingliang Provincial Capital Dingxi City/Town Linxia National Road Other Road Zhang Xian S H A A N X I Railway Linlan Tianshui River Provincial Boundary Cheng Xian o 34 o 00'N International Boundary 34 00'N Boundaries are not necessarily authoritative. Wudu 0 6 M -
0 S I C H U A N 7 0 a 3 p a
H o o 96 00'E
106 00'E 1 R o 98 00'E 102 o 00'E
Jiayuguan Jiuquan
I N N E R M O N G O L I A N
Gaotai Jingtieshan 0 10 20 40 60 Linze Kilometers o o 39 00'N 39 00'N Zhangye . Sunan Yugurzu R he Zizhixian ei H
Bajiaowan Shandan Huazhai
ERLONGSHAN Anyang Minqin Jinchang HYDROPOWER Sidalong PROJECT Mati
Minle Yongchang
GANSU HEIHE HYDROPOWER Xincheng DEVELOPMENT PROJECT Wuwei IN THE PEOPLE'S REPUBLIC OF CHINA Q I N G H A I Huangcheng
o Core Zone o 37 30'N Gulang 37 30'N Experimental Zone City/Prefecture Government Tianzhu Zangzu County Seat Zizhixian National Road Other Road Railway River Buffer Zone County Boundary Prefecture Boundary Provincial Boundary 0 3
Boundaries are not necessarily authoritative. M - 0 7 a 0 3 p b
H o o 98 00'E 102 00'E 2 R GANSU HEIHE HYDROPOWER DEVELOPMENT PROJECT Distribution of Construction Sites of Erlongshan Hydropower Project IN THE PEOPLE'S REPUBLIC OF CHINA
Proposed Hydropower Project Future Hydropower Project r ive Operational Hydropower Project R ihe Under Construction Hydropower Project He Village Road Longshou No. 1 Hydropower Project Tunnel River/Creek Longshou No. 2 Hydropower Project
Xiaogushan Hydropower Plant Bajiaowan Village Xiaogushan Dam
Louzhuangzi Village Dagushan Hydropower Plant lly Gu Dagushan Dam ou X g i an l g i ng Erlongshan Hydropower Plant u ha s C h No. 1 Waste Rock Site u i
C Duantougou Borrow Pit r k e ree e g C k don No. 2 Waste Rock Site lao H He eih Liushuyuan Borrow Pit e R iv Erlongshan Dyke Head Facilities er hou Ck. Sandaowan Hydropower Plant Huama Sandaowan Hydropower Dam ek re C ng Jiadaogou Hydropower Project lo da Si Huangzangsi N Hydropower Project 0 0 6 M 3 - - 0 0 7
7 Note:
Not to scale a 0 0 3 p 3 c c
H H 3 R R
I. INTRODUCTION
1. This summary environmental impact assessment (SEIA) summarizes the assessment of environmental issues relating to the Erlongshan Hydropower Project (Project), located on Heihe River in Gansu Province in the People’s Republic of China (PRC). The SEIA was prepared in accordance with the Environmental Assessment Guidelines (2003) and Environment Policy (2002) of the Asian Development Bank (ADB). The Project is classified as category A in accordance with ADB environmental classification criteria. The total cost of the Project is $44 million. ADB is considering providing financing of $22 million; the PRC Government $22 million. The Project is anticipated to take 3 years to complete.
2. The SEIA is based on the Environmental Impact Assessment (EIA) Report, October 2004 for the Project, which was prepared by the Gansu Provincial Environment Protection Research Institute in parallel with the feasibility study conducted by the Gansu Water Conservancy and Hydropower Survey Design Institute. The SEIA is also based on the Gansu Middle Sized Hydropower Development Planning Report, 1991, prepared by the former Northwest Hydropower Design Institute, and the Heihe River (Huangzangsi to Dagushan) Cascade Development Report, 2004 prepared by the Gansu Water Conservancy and Hydropower Survey Design Institute. In October 2004, the Gansu Provincial Environment Protection Bureau (EPB) reviewed and approved the EIA. The Zhangye Erlongshan Water and Soil Conservation Report, 2004, was prepared by the Gansu Water and Soil Control Station and approved by the Gansu Water Conservation Bureau in November 2004. As the total installed capacity of the Project is less than 100 megawatts (MW), provincial approval of the EIA report is sufficient. State Environmental Protection Administration approval is not required for the Project.
3. The Project is located in Zhangye City, Gansu Province, PRC, which has a relatively high poverty rate of 29.3%. For several years, Zhangye has experienced electricity shortages due to low installed generation capacity and high transmission losses resulting in unreliable and low quality service (low end voltage electricity). The frequent interruptions of electricity supply have been a major factor inhibiting the city’s economic development. Given the projected demand growth, the power shortages are expected to become more acute. The Project is seen by the local and provincial governments as vital to accelerate Zhangye’s economic development. The area is relatively rich in hydropower resources. ADB has previously supported development of the regional hydropower capacity in Zhangye through the Gansu Clean Energy Development Project (Loan 2032) in 2003 which included construction of a 98 MW hydropower plant (HPP) on Heihe River at Xiaogushan, approximately 27 kilometers (km) downstream from the Erlongshan HPP Project site.
II. DESCRIPTION OF THE PROJECT
4. The proposed Erlongshan Hydropower Project consists of a 50.5 MW run-of-the-river hydropower facility (2x20 MW and 1x10.5 MW units). The Project is located within Sunan County in Zhangye City. The project location is presented in map 1 and map 2. The Project will provide base-load electric power generation with annual electricity generation of 174 million kilowatt-hours (kWh). No dam construction or impounded water reservoirs are associated with the Project. The Project will redivert the discharge from the Sandaowan HPP directly to the Erlongshan intake structure. The Project will occupy 24.86 hectares (ha) of land, including 9.13 ha of permanently occupied land and 15.73 ha of temporarily occupied land. The Project will reduce water flow from a 10.3 km stretch of Heihe River. The Project will include construction of the following:
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(i) a 110 kilovolt (kV) substation,
(ii) a 4.7 km water intake tunnel (6-meter [m] diameter) with maximum flow capacity of 98 cubic meters/second (m3/s),
(iii) temporary workers’ accommodation,
(iv) permanent office and residential building,
(v) two waste rock areas,
(vi) two borrow pits,
(vii) water intake structure,
(viii) open water intake canal (217 m),
(ix) water discharge canal (70 m),
(x) front pool (10–22 m wide and 45 m long),
(xi) pressure regulation shaft (15 m in diameter), and
(xii) pressured water channel (303 m).
5. Additionally, the Project will use 38.6 km of 110 kV transmission line commencing at the Erlongshan HPP and terminating at Dayimalong Substation (330 kV), and 31 km of a single dead-end access road. The transmission line and the access road are joint-use facilities for the existing and proposed Heihe River HPPs and have already been constructed.
6. The Gansu Water Conservancy and Hydropower Survey Design Institute prepared the Heihe River (Huangzangsi to Dagushan) Cascade Development Report, 2004 to manage hydropower development in the Heihe River basin. The Erlongshan Hydropower Project is one facility of a proposed 8-station hydropower cascade system for Heihe River. Currently, two operational hydropower stations are operating on the Heihe River: the Longshou Phase One Hydropower Station (52 MW) was completed in December 2001 and the Longshou Phase Two (157 MW) project was put into operation in July 2004. Construction has begun on the Xiaogushan HPP (98 MW) and Sandaowan HPP (123.4 MW). Preliminary site preparation works have commenced at Erlongshan HPP. Feasibility studies are being conducted for Dagushan HPP (59.5 MW), Huangzangsi HPP (71.2 MW), and Jiadaogou HPP (124.4 MW). The total combined capacity of the eight HPP cascade will be 736 MW. A single dead-end gravel road along the Heihe River links the existing and proposed HPPs. A combined transmission line constructed along the river is for use by the existing and proposed HPPs. The locations of the proposed Heihe River cascade HPPs are detailed in map 3.
III. DESCRIPTION OF THE ENVIRONMENT
A. PHYSICAL ENVIRONMENT
7. Topography. The project area consists of steep mountains. Heihe River is located in a steep V-shaped river valley. The side slopes of the valley range from 60 degrees to near vertical. Five relatively large gullies connect to the river in the project area. The distance between the intake 3
structure and the discharge structure is approximately 10.3 km. Along this section, Heihe River is approximately 30–60 m wide, has an average grade decline of 8.6%, and a vertical fall of 67.5 m. The intake water for the Erlongshan HPP is taken directly from the tailwater outlet of the Sandaowan HPP. The water then passes through a 4.7 km tunnel to the Erlongshan HPP, which is located approximately 10.3 km downstream on the bank of Heihe River.
8. Geology. The bedrock in the project area is predominantly Silurian slate and adamellite. The slate is hard and suitable for high-grade building panels. The adamellite is hard with well-developed jointing. The side slopes in the Heihe River gorge consist of exposed fractured bedrock, scree slopes, relatively thin weathered soils, and colluvium. The Project will include a 4.7 km tunnel from the water outlet of the Sandaowan HPP to the Erlongshan HPP. The tunnel will be drilled through Silurian slate and then adamellite. The slopes along the river valleys are relatively unstable in some areas. Landslides and rockfalls are common in some areas.
9. Soils. The soil in the project area consists of Hanzhan and Ligai soil. The Hanzhan soil contains calcium iron sediments and calcium carbonate content reaching 20–30%. It is distributed mainly in the upper parts of the hills on both sides of the river and is typically a relatively thin layer. The Ligai soil has three subclasses (light, typical, and dark), is found on gentle slopes and generally has more than 2% organic matter. In the project area, humus materials accumulate gradually, intensively calcifying with some accumulation of gypsum and salt. Soil formation depends on the decomposition of grass roots. An analysis of the Ligai soil is given in Table 1.
Table 1: Nutrient and Salt Analysis of the Ligai Soil Organic Sampling Total Total P Total K Gypsum pH Matter C/N CaCO Depth (cm) N (%) (P O %) (K O%) 3 (mg/100g) (%) 2 5 2 0–16 8.06 2.856 0.170 9.74 0.166 2.49 6.31 0.30 16–30 8.28 1.535 0.096 9.27 0.156 2.40 8.19 0.40 30–55 8.34 1.149 0.031 8.23 0.140 2.54 8.49 0.27 55–77 7.99 3.276 0.197 9.65 0.171 2.78 5.43 0.29 77–105 — 2.657 0.197 7.44 0.158 2.60 — — — = not analyzed, CaCO3 = calcium carbonate, C/N = carbon nitrogen ratio, g = gram, K2O = potassium oxide, mg = milligram, N = nitrogen, P2O5 = di phosphorous peroxide. Source: Gansu Environmental Protection Research Institute. 2002. Xiaogushan Hydropower Plant Environmental Impact Assessment Report.
10. Climate. The project area has four seasons that do not alternate distinctly, and a dry climate with low rainfall. Winter and spring are long and cold with a river icing period of 4 months, while summer and autumn are short and cool. The rainfall is high in the south of the Qilianshan mountainous region, with an annual average of 300–500 millimeters (mm). However in the middle of Qilianshan mountainous region, the annual rainfall is only 100–200 mm, while evaporation reaches 2,000–2,500 mm. In March and April, snowfall is frequent. Based on data from the Yingluoxia Hydrographic Station, located about 50 km from the Project, average yearly rainfall is 175 mm and yearly average water surface evaporation is 1,379 mm and the average temperature is 8.5 degrees Celsius (°C) with a maximum of 32.4°C and minimum at –33°C. The dominant wind direction is west with an average wind speed of 2.6 m/s, the maximum recorded being 17 m/s. The highest recorded rainfall event is 32 mm, maximum frozen earth depth is 1.5 m, and the maximum river ice thickness is 0.8 m.
11. Air Quality. Based on the Gansu Annual Environmental Quality Report, 2004, the baseline air quality in Zhangye City is relatively poor, reaching category III (GB 3095-1996) standard in 2004, with suspended particulates as the main pollutant (Table 2).
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Table 2: Air Quality in Zhangye, 2004 3 3 3 Item SO2 (mg/m ) NO2 (mg/m ) TSP (mg/m ) 2004 average 0.068 0.027 0.25 2003 average 0.081 0.022 0.328 Grade II standard 0.061 0.040 0.20 Grade III standard 0.100 0.080 0.30 3 mg/m = milligram per cubic meter, NO2 = nitrogen dioxide, S02 = sulfur dioxide, TSP = total suspended particulate. Note: Amounts are in milligram per cubic meter, 24-hour averages. Source: Zhangye Environmental Protection Bureau. 2004. Zhangye Environmental Quality Report.
12. The project area does not have a permanent environmental monitoring station, however site-specific monitoring was conducted in preparation of the Project EIA. The monitoring indicated that the air quality in the Project area was relatively good during the evaluation period. No industrial pollution sources are in the vicinity of the Project. Monitoring results are presented in Table 3.
Table 3: Air Quality in the Project Area (mg/m3) Monitoring Point 1a Monitoring Point 2b Date of Monitoring SO2 NO2 TSP SO2 NO2 TSP 6 Nov 2002 0.002 0.002 0.08 0.002 0.002 0.11 7 Nov 2002 0.002 0.002 0.09 0.002 0.002 0.10 8 Nov 2002 0.002 0.002 0.10 0.002 0.002 0.90 Grade I Standard (GB3095-1996) 0.050 0.080 0.12 0.050 0.080 0.12 3 mg/m = milligram per cubic meter , NO2 = nitrogen dioxide, S02 = sulfur dioxide, TSP = total suspended particulate. Amounts are in milligram per cubic meter, 24-hour averages. a 500 meters upwind of the proposed Erlongshan Hydropower Project. b 500 meters upwind of the Sandaowan weir site. Source: Gansu Environmental Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
13. Water Resources. Heihe River originates from the Qilian and Datong mountains in Qinghai Province, and terminates at Juyanhai Lake in Inner Mongolia, with no hydraulic connection to the sea. Surface runoff is fed primarily by rainfall and snowmelt from Qilian Mountains. The runoff is not even throughout the year, with most runoff concentrated in the June–September rainfall season. Heihe River’s average discharge is 49 m3/s, and the average grade is 10–20%. The average monthly river flows are presented in Table 4.
Table 4: Heihe River Average Monthly Flows (m3/s) Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 10.9 11.4 14.3 21.9 31.3 80.3 124 83.7 56.8 27.2 19.9 12.6 Flow Rate Source: Gansu Environmental Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
14. Six creeks enter Heihe River between the upstream Sandaowan weir and Erlongshan HPP, which will contribute to the environmental flow in the reduced water section of Heihe River. The location of these creeks is presented in map 2 and the average monthly discharge flows are presented in Table 5.
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Table 5: Average Monthly Discharge of Creeks in Vicinity of Project (m3/s) Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jiamugou Creek 0.05 0.06 0.06 0.13 0.18 0.35 0.65 0.35 0.34 0.15 0.11 0.06 Hongshiban 0.00 0.00 0.00 0.02 0.03 0.06 0.11 0.07 0.06 0.03 0.02 0.00 Creek Huamu Creek 0.02 0.02 0.02 0.04 0.06 0.12 0.22 0.12 0.11 0.05 0.04 0.02 Sidalong Creek 0.21 0.24 0.24 0.50 0.71 1.41 2.58 1.42 1.36 0.60 0.42 0.24 Songmu Creek 0.02 0.02 0.02 0.04 0.06 0.12 0.22 0.12 0.11 0.05 0.04 0.02 Salagai Creek 0.18 0.21 0.21 0.44 0.62 1.22 2.24 1.23 1.18 0.52 0.37 0.21 Total 0.48 0.55 0.55 1.17 1.66 3.28 6.02 3.31 3.16 1.40 0.97 0.52 Source: Gansu Environmental Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
15. Water Quality. Heihe River contains lightly mineralized calcium magnesium carbonate (0.1–0.3 grams per liter present as calcium bicarbonates). No factories are located upstream of the Erlongshan HPP. During 8–10 April 2004, the Zhangye Environmental Monitoring Station conducted water quality monitoring at five locations along Heihe River in the vicinity of the Project. The monitoring results (Table 6) indicate that the water quality meets Class I standard (GB3838-2002), which is the highest water quality grade, designated for natural protection areas and drinking water reservoirs, with the exception of elevated chemical oxygen demand and coliform at two locations. The Zhangye Environmental Protection Bureau (EPB) indicated that this was due to inappropriate wastewater disposal from a number of construction camps. The Zhangye EPB indicates that appropriate treatment systems have since been installed at the relevant sites.
Table 6: Water Quality in the Project Area, 2004 Monitoring Water N- Total Date pH SS DO CODcr BOD5 Nitrate Oil Coliform Site Temp NH3 P 8 Apr 17 8.09 110 8.51 14.8 0.102 2.48 0.86 0.013 0.025 0.005 Sandaowan 9 Apr 12 8.15 137 8.31 11.4 0.069 2.27 0.91 0.013 0.025 ND HPP Weir 10 Apr 10 8.32 109 8.61 11.8 0.042 2.26 0.96 0.013 0.025 0.005 Section with 8 Apr 14 8.07 130 8.62 10.8 0.066 2.17 0.80 0.013 0.025 0.017 Reduced 9 Apr 13 8.32 137 8.51 13.0 0.067 2.25 0.93 0.013 0.025 0.005 Water Flow 10 Apr 11 8.37 87 8.31 9.40 0.132 2.13 0.91 0.013 0.025 ND Downstream 8 Apr 15 8.14 222 7.58 10.4 0.064 2.27 0.83 0.013 0.025 0.002 Erlongshan 9 Apr 14 8.18 128 8.10 11.8 0.078 2.16 0.80 0.013 0.025 ND HPP 10 Apr 11 8.39 137 8.31 8.6 0.091 1.53 0.90 0.013 0.025 0.079* Upstream of 8 Apr 11 7.99 102 8.41 10.0 0.086 2.78 0.86 0.013 0.025 0.046* Xiaogushan 9 Apr 13 8.18 109 8.31 11.7 0.091 2.00 0.84 0.013 0.025 0.016 HPP 10 Apr 14 8.37 116 8.20 13.4 0.096 2.40 0.81 0.013 0.025 0.007 Downstream 8 Apr 15 8.15 124 8.62 15.9* 0.067 2.17 0.79 0.013 0.025 0.002 Xiaogushan 9 Apr 16 8.29 120 8.56 15.4* 0.096 2.48 0.82 0.013 0.025 0.001 HPP 10 Apr 16 8.43 116 8.51 15.8* 0.126 2.34 0.85 0.013 0.025 ND 6.5– GB3838-2002 Class I 15 0.5 3 10 0.02 0.05 0.02 8.5 BOD5 = biochemical oxygen demand (5 day), CODcr = chemical oxygen demand (chromium method), DO = dissolved oxygen, HPP = Hydropower Plant, N = nitrogen, ND = not detected, NH3 = ammonia, P = phosphorus. Amounts are in milligrams per liter (mg/l) except temp (oC), pH and coliform (number/l). * Value exceeds GB3838-2002 Class I standards Source: Gansu Environmental Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
16. In 1999, the total water flow for Heihe River was 3.146 billion cubic meter (m3), including 2.465 billion m3 for agriculture irrigation, 0.521 billion m3 for environmental flow, 0.115 billion m3 for industrial use, and 45 million m3 for residential use. The main downstream
6 water use is irrigation. To ensure minimum water supplies for downstream users, a range of limitations are placed on upstream extraction. For example, in 2001 the State Council approved the Middle Term Plan for Heihe River Basin Control, which stipulates that “when the average annual runoff reaches 1.58 billion m3 at Yingluoxia, the water discharge at Zhengyixia should reach 0.95 billion m3”. As the Project is a run-of-the-river HPP, and will not reduce total flows, these requirements will not impact proposed operations.
17. Noise. The Project is located in Heihe River valley and is surrounded by high mountains, which are periodically used as pastureland. The valley has no permanent residents. The nearest residential area (direct distance) is Louzhuangzi village, located approximately 20 km from the Project. Although no noise monitoring data is available for the proposed site, preconstruction noise monitoring was conducted in November 2002 at Xiaoguashan HPP, located approximately 36 km from the Project. These monitoring results indicate conformance with grade I of the Urban Environmental Noise Standard (GB3096-93), indicating low background noise levels.
Table 7: Noise Level in the Xiaogushan HPP Project Area Monitoring Points Time of Day Decibel Acoustic Day 43.9 1 Night 39.8 Day 45.6 2 Night 43.2 Day 40.3 3 Night 37.2 Day 55 Grade I (GB3096-93) Night 45 Grade III (GB3096-93) Day 65 Night 55 Grade I (GB3096-93) relates to rural residential area, urban residential or educational area. Grade III (GB3096-93) relates to industrial areas. Source: Gansu Environmental Protection Research Institute. 2002. Xiaogushan Environmental Impact Assessment Report.
B. BIOLOGICAL ENVIRONMENT
18. Qilianshan National Natural Reserve. The Project is located in the experimental zone of Qilianshan National Natural Reserve (QNNR). QNNR was established in May 1988 through the State Council and covers parts of eight counties and cities (map 2). Currently, three regulations govern QNNR: (i) the State Regulation for Natural Reserves, 1994; (ii) Gansu Provincial Regulation for Natural Reserves, 1999; and (iii) Regulation for Management of QNNR, 1997 (revised in 2002). The reserve is designed to conserve water resources and protect forest and grassland ecosystems. QNNR administration is under the Gansu Provincial Forest Administration and consists of 21 management stations, 133 forest protection stations, and 10 check stations with 968 staff. One access road leads into the project site, with a QNNR check station across the road to ensure logs are not removed from the area. Current human activities conducted in the QNNR experimental zone include hydropower generation, stock grazing, agricultural crops and fruit trees, tourism facilities, and commercial activities carried out in numerous villages. No industrial activity occurs in the QNNR experimental zone within the project area.
19. QNNR is divided into three zones according to function: (i) core, (ii) buffer, and (iii) experimental. The core zone aims to preserve the designated QNNR ecosystems. The core zone is strictly closed to human activity except for organized and limited scientific investigation that will not impact the ecological integrity of the area. The buffer zone allows for scientific activities for water source conservation, biological research, and limited forest cultivation. The experimental zone allows forest cultivation, industrial activity that doesn’t impact the environment, and activities 7 such as tourism that will promote natural resource protection. The nearest point of the Project to the QNNR buffer zone is approximately 29 km and to the core zone is approximately 30 km. The Sidalong Protection Station manages the project area. Construction of the Erlongshan HPP in the experimental zone of QNNR was approved on 13 May 2004 by the QNNR Bureau.
20. Flora. The Heihe River valley consists of steep mountain slopes and small flat floodplain areas along the river. The mountain slopes are sparsely grassed. The valley includes sparse tree coverage along the river bank, mainly willow, poplar, and elm. Approximately 230 trees are located along the 10.3 km section of the river that will have reduced water flow from the Project. Almost no trees are located on the mountain slopes above the river, with the exception of forests of protected spruce trees located in the upper mountains above the river (greater than 4 km from the Project). A small forested area (approximately 6.5 ha) is located on a floodplain area adjacent to the Erlongshan intake structure. The forested area has been planted by the QNNR Forest Station. The forested area includes two temporary accommodation buildings for QNNR staff managing protection of the broader QNNR. The project infrastructure construction will require destruction of a small number of trees. No endangered trees are located along the river bank. Relatively few shrubs are located on the mountain slopes surrounding the project area. The shrubs are dominated by Salsola arbuscula and Kochia prostrate. No protected shrubs are in the project area. Grassland coverage in the area ranges from 30–70% with annual grass output quantity at 975–1,425 kilograms (kg) per ha. The project area is typical of subgrassland zones of Qilian Mountains. The project area includes about 30 types of grasses, with no endangered species. The grasses are dominated by P.harmala, Chenopodium album, Deyeuxia scabrescens, Aster alpinus, and Allium. As the Project will not require construction of a dam or reservoir, no ecosystems will be inundated. The Project will require permanent acquisition of 9.13 ha and temporary acquisition of 15.73 ha. These areas comprise mainly barren areas along the edge of Heihe River. No agricultural land or permanent residents in the Heihe River valley are in the vicinity of the Project.
21. Fauna. QNNR has rich fauna resources: 229 kinds of terrestrial fauna, including 47 kinds of mammals, 69 kinds of birds, and 13 kinds of reptiles and amphibians. Among the animals, are 51 protected species, of which 13 rated as Grade One State Protected Species and 38 species rated as Grade Two State Protected Species. The Gansu Environmental Research Institute indicates that no endangered fauna are located in the vicinity of the Project. A list of the state protected species in QNNR is presented in Table 8.
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Table 8: Nationally Protected Fauna in the QNNR Protection No. Order Order/Family Name Grade 1 Canidae Cuon alpinus Ⅱ 2 Ursidae Ursus arctos Ⅱ 3 Martes foina Ⅱ Mustelidae 4 Lutra lutra Ⅱ Carnivora 5 Lynx lynx Ⅱ 6 Felis lybica Ⅱ Felidae 7 Felis beiti Ⅱ 8 Felis manul Ⅱ 9 Proboscidea Equidae Equus bemionus Ⅰ 10 Cervus alblrostris Ⅰ 11 Cervidae Cervus elaphus Ⅱ 12 Moschus sifanicus Ⅱ 13 Artiodactyla Poephagus mutus Ⅰ 14 Procapra picticaudata Ⅱ Bovidae 15 Ovis ammon Ⅱ 16 Pseudois nayaur Ⅱ 17 Milvus korschun Ⅱ 18 Accipiter gentiles Ⅱ 19 Accipiter Nisus Ⅱ 20 Buteo herrilasius Ⅱ 21 Buteo buteo Ⅱ 22 Aquila chrysaetos Ⅰ 23 Aquila heliaca Ⅰ 24 Aquila rapax Ⅱ 25 Accipitriddae Haliaeetus leucoryphus Ⅰ 26 Haliaeetus albicilla Ⅰ Falconiformes 27 Aegypius monachus Ⅱ 28 Gyps fulvs Ⅱ 29 Gypaetus barbatus Ⅰ 30 White tail snipe Ⅱ 31 Circus aerugi Ⅱ 32 Short finger vulture Ⅱ 33 Pandion haliaetus Ⅱ 34 Falco cherrug Ⅱ 35 Falconidae Falco tnnunculus Ⅱ 36 Falco subbuteo Ⅱ QNNR = Qilianshan National Natural Reserve. Source: Gansu Environment Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment. 9
22. Aquatic Life. In June 2004, the Zhangye Environmental Monitoring Station conducted an aquatic survey of the section of Heihe River impacted by the Project. The survey identified very limited numbers of two fish species: flat tooth fish and Banghua fish. Both species were located in the slow-moving sections of the river. The survey also identified seven kinds of protozoon and 12 kinds of algae. Due to the large water drop, low water temperature, and clear water, Heihe River is suitable for growth of small single-cell plant and multiple-cell phytoplankton.
C. SOCIOCULTURAL ENVIRONMENT
23. Local Population. The Project is located in an area within Mati Town, Sunan County, Zhangye. The Project is located along a single dead-end road that connects the existing and proposed HPPs of the Heihe River HPP cascade. The nearest village by distance (approximately 20 km) is Louzhuangzhi, population 276 (2002). The nearest village by road (approximately 45 km) is Bajiaowan, population 398 (2002). The Heihe River valley has no permanent residents in the vicinity of the project site. Approximately 80% of the population of Mati Town area is of Tibetan origin. The Mati Town area is predominately mountainous with very limited land suitable for irrigation. Summer rainfall is low and unreliable, and the area experiences frequent severe droughts. In winter the grasslands are buried in snow, and temperatures fall as low as –30°C, putting extreme pressure on livestock and people.
24. Land Use and Economy. The potentially impacted population lives in Louzhuangzhi and Bajiaowan villages, total population 674 (2002). The villagers depend on herding sheep and smaller numbers of other livestock (such as yaks, horses, donkeys, mules, and goats) in steep dry mountain grasslands. Less than 10% of the labor force has nonagricultural livelihoods. Surveys conducted for the Xiaogushan HPP development in 2002 indicated that a majority (67.8%) of households depended entirely on livestock and livestock products for direct consumption and sales incomes. In 2001, 15,800 livestock were recorded, of which 2,100 were large animals (yaks, cows, horses, mules, and donkeys) and 13,700 sheep and goats. Two families from Louzhuangzhi utilize the project construction area for sheep grazing in August and September each year. The residential population of the area does not have any other commercial use from the project site.
25. Approximately 45% of households have terraced and irrigated cropland to supplement herding income in valleys low enough to grow annual crops such as grain. The area is a grain deficit area. Households must sell livestock, livestock products, and wood to buy grain and manufactured products, pay for coal, electricity, kerosene, and diesel fuel for their tractors or wheel trucks, and procure services including education and medical care. Cropland is located in valleys at altitudes of 1,500–2,500 m, where the 100–120 frost-free days permit a single annual crop. Food crops include wheat, highland barley, and beans; while oats and hay are dried and stored for livestock winter fodder. Herder families gather berries, mushrooms, and herbs in season from indigenous spruce forests in the mountains which are dried for winter food. They plant several fruits (peach, apricot, plum, apples, and pears) in valley courtyards for home consumption. Planting considerably more fruit trees is technically but not economically feasible. Based on the field survey, no cultural relics or historic structures or features are located in the project area. According to 2002 survey data for the Xiaogushan HPP, the average income for farmers and herders in the project area was CNY3,692 per person. The project area has six nationalities. No factories are located in Louzhuangzhi and Bajiaowan villages. Income is mainly from agriculture and herding.
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IV. ALTERNATIVES
26. Do-Nothing Option. Under the do-nothing alternative, the disparity between the minimum and maximum daily power demand will continue to increase. The continued increase in the base-load demand for the grid will increase the frequency and duration of power outages and load shedding. This will impact economic development of the area and hinder poverty reduction efforts.
27. Alternative Energy Supplies. The Project can be replaced by a coal-fired power plant of 50.5 MW. Economic analysis of the coal-fired alternative indicates that construction of the Erlongshan HPP is a less expensive power generation option. Increasing the coal-fired generation capacity will have significant negative environmental impacts due to the total increase in emissions. Compared to an equivalent coal-fired power plant, the Project will replace approximately 60,000 tons (t) coal equivalent annually. Other alternative energy supplies in Zhangye for power generation include renewable energy resources, oil, and gas. Currently, alternative renewable energy supplies such as wind, solar, and biogas cannot compete commercially with coal-fired or hydropower generation. Zhangye has no domestic oil and gas resources. Imported oil and gas for power generation is currently uneconomical compared to coal-fired and hydropower generation.
28. Alternative Water Diversion Options. Two alternative water diversion options were identified and evaluated. Option I is to connect the tail water of Sandaowan hydropower station, and a 4.7 km pressured water intake tunnel. Option II is to construct a water-blocking gate at the mouth of Songmugou gully, with a normal water level of 2,205 m, and a 3.5 km pressured water intake tunnel. Based on environmental, geological, construction, management, and cost implications, option I was selected as the preferred option for the water diversion. Table 9 shows a comparison of the two options.
Table 9: Summary Comparison of Water Diversion Options Evaluation Criteria Option I Option II Preferred Option Topography, Geology, Sound geological conditions, tight Good terrain geological conditions, tight and Flooding layout, no flood discharge, and less layout, simple flood discharge, more energy I energy reduction reduction Environmental Impact No reservoir, section of river with Small reservoir capacity, 6.2 hectares of land from Reservoir reduced water 10.3 km would be submerged, section of river with I Construction reduced water 7.4 km External Impacts Small consumption of steel and Large consumption of steel and concrete, concrete; uses less imported uses considerable imported materials. I materials; fewer impacts caused by transportation. Construction Less work quantity, simple More work quantity due to construction of the Conditions construction method, no riverbed water-blocking gate; tunnel is shorter with I diversion construction, the water less technical difficulty. intake tunnel is long Economic Indicators Project investment is economic, while Project investment is large, while hydropower I hydropower energy loss is small energy loss is big Operational Less construction quantity, simple More construction quantity, complex Management engineering structure leads to engineering structure causes inconvenient I convenient operation management operation management Volume of Earthworks 71,600 m3 91,700 m3 I km = kilometer, m3 = cubic meter. Source: Gansu Environment Protection Research Institute 2004. Erlongshan Environmental Impact Assessment. 11
29. Alternatives for Tunnel Alignment. Two alternative tunnel alignments were considered. The final alternative was selected based on geological conditions, construction technology, and economic aspects. Selection of the tunnel diameter was based on least-cost annual compensation methodology.
V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
A. SOIL
30. Construction Period. During construction, potential impacts on soil could result from (i) loss of topsoil, (ii) failure to rehabilitate borrow areas and temporarily acquired land, (iii) soil erosion and siltation, (iv) soil contamination by fuel and lubricants, and (v) disposal of excess earthworks. Loss of topsoil will be avoided by stripping and storing topsoil (where present) prior to construction and reusing it for rehabilitation works. Sand and coarse aggregate requirements will be mined from two sites: Liushuyuan and Duantougou borrow pits (map 3). In these sites, soil cover is thin and vegetation is sparse. Borrow pit material extraction will be undertaken in sections with rehabilitation undertaken in stages to minimize erosion. Rehabilitation will include (i) regrading slopes to minimize erosion, (ii) replacing stockpiled soil cover, (iii) replanting grass, shrubs, and trees, (iv) installing sediment runoff control devices, and (v) providing ongoing erosion monitoring. Impacts on temporarily acquired land and borrow pits will be minimized by comprehensive rehabilitation works. Soil erosion and siltation will be minimized by preventive measures, implemented on a case-by-case basis, such as planting shrubs and grass, and appropriately engineered storm-water diversions. Construction of the access road could result in increased soil erosion, which will be minimized by appropriate road engineering, including appropriate road compaction and runoff design. Soil contamination will be prevented by installing oil separators at wash-down and refueling areas, and installing secondary containment at fuel storage sites. The largest potential negative impact is related to waste rock disposal and materials mining. Excavated rock and aggregate will be used in construction to the maximum extent possible, however approximately 193,900 m3 of spoil will require disposal. Two sites have been selected where the catchment area is minimal, landslide potential is low, and flooding is not expected. Sites will be covered with soil, and planted with shrubs and grasses.
31. Operational Period. During operation, potential impact to soil could occur from spillage of hazardous wastes and materials, including hydrocarbons and from localized scour at the water discharge outlet. Soil contamination will be prevented by installing oil separators at wash-down and refueling areas, and installing secondary containment at fuel storage sites. All hazardous wastes and hazardous materials will be stored in properly designed storage facilities. Scour at the water outlet will be minimized through appropriate engineering design, such as placement of erosion protection gabion mattresses.
B. WATER
32. The project design does not include construction of any dam or water impoundment structure. The Project will not cause significant changes to the downstream discharge hydrograph below the Erlongshan HPP discharge structure. Therefore, the Project will not have any impact on downstream water users. However, the Project will reduce flows along a 10.3 km section of Heihe River between the Erlongshan intake structure (located at the base of the Sandaowan HPP discharge structure) and the Erlongshan HPP. To mitigate impacts on flora and fauna, a minimum environmental flow will be maintained in this section of the river.
33. Wastewater discharge during the construction phase will consist of about 31 t/d sanitary wastewater effluent discharge from the work camps. The main potential impact to adjacent
12 waterways is increased chemical and biological oxygen demand and suspended solids. All wastewater will be treated to national standards and then recycled on-site. No untreated sanitary waste will be directly discharged to surface water bodies. Truck and other vehicle maintenance will be strictly controlled to prevent discharge of waste oil into the river. Wastewater during the operational phase will be generated from canteens and septic wastewater in the hydropower plant and residential areas. Wastewater generation from the residential area will be about 5.28 t/d. The wastewater will be treated to Grade I of the Discharge Standard of Wastewater (GB8978-1996), and recycled on-site.
C. AIR QUALITY
34. The main impact to air quality during construction will be from increased dust levels from construction machinery, tunnel and adit construction, rock blasting, foundation excavation, cement mixing, and road construction. Dust generation from construction traffic will be mitigated by using water spray trucks for dust suppression. During the operational phase, the hydropower plant will not generate any significant sources of air pollution.
D. NOISE
35. During construction, noise will be generated from vehicular movements, sand and aggregate processing, concrete mixing, excavation machinery, construction activities, and blasting. The main potential impact of high noise levels will be on construction workers. Due to the absence of residential areas within 20 km of the Project, no major impacts are anticipated on residential areas. Mitigation measures for noise impacts on construction workers will include standard occupational health and safety practices such as ear protection and enforcement of exposure duration restrictions. During the operational period, noise will be generated from the pumps, air compressors, and generators. Noise reduction measures will be taken, where required to reduce the noise level at the project boundary to meet Category II of the Urban Environmental Noise (GB3096-93) and requirements of Noise Standards at Industrial Facility Boundary (GB12348-1990). Mitigation measures during operation for noise impacts on workers will include standard occupational health and safety practices.
E. SOLID WASTE
36. Solid waste generated during construction will consist of (i) domestic waste and construction waste from work camps, and (ii) hazardous waste from work sites. The construction workers camp will generate approximately 0.8 t/d. Disposal of domestic waste and construction waste will occur regularly to approved off-site disposal sites. No on-site landfills will be developed. Hazardous waste will be collected and stored on-site in approved facilities according to relevant standards. Hazardous waste will then be removed from site to approved hazardous waste disposal facilities. During the operational phase, domestic and industrial wastes from the hydropower plant and accommodation facilities will be disposed of in off-site approved municipal and hazardous waste disposal sites. Storage, collection, transportation and disposal of hazardous wastes will be conducted in conformance with relevant PRC regulations.
37. Hazardous materials will be used during both the construction and operation of the Project. Potential impacts to the environment are from accidental spillages affecting soil, groundwater, and adjacent water bodies. Mitigation measures to prevent spillage will include installing appropriate hazardous material storage facilities.
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F. FLORA AND FAUNA
1. Construction Period
38. Potential impacts on flora and fauna include (i) vegetation destruction during construction activities, (ii) potential increase in illegal fuelwood collection and poaching, and (iii) localized disturbance of protected wildlife. Some vegetation will be removed at the construction sites (hydropower plant, access roads, and work camps). All works will be carried out to minimize damage or disruption to vegetation. After completion of construction activities, temporarily occupied areas will be replanted. Construction activities will require removal of a small number of trees (<10). The QNNR Bureau, which maintains a record of all trees in the proposed construction areas, requires compensatory planting for any tree removed during construction and payment of a fine for every tree removed during construction. All vegetation at the project site is widely distributed and threatened habitats will not be reduced due to construction activities.
39. Due to the temporary increase in workers on the construction site, the potential for illegal fuelwood collection and animal poaching is increased. Mitigation measures will include (i) provision of adequate heating and cooking facilities, and (ii) provision of environmental training for all construction staff on environmental management issues including QNNR’s environmental protection objectives, requirements of relevant PRC laws and regulations, and relevant penalties. Construction activities will disturb the habitat of terrestrial animals immediately adjacent to the project site and may result in movement of wildlife from the project vicinity. A percentage of the impact is anticipated to be temporary during construction. The vicinity of the project site does not include normal habitats for protected species. The nearest location of the QNNR core zone is approximately 30 km from the Project. Forest areas of protected spruce trees are located in the upper reaches of the mountains above the Project (greater than 4 km).
2. Operational Period
40. Flora. The terrestrial vegetation along the reduced flow section that is dependent on Heihe River baseline flow consists of approximately 230 trees along the riverbank and grassland species along flatter riverbank sections. The riverbank is generally rocky. Flora communities on the riverbank are generally similar to communities encountered on the steeper terrain away from the river and are generally reliant on rainfall rather than the river. Improvement of access roads to the Erlongshan HPP site will increase access to the surrounding mountains for livestock grazing, with potential of overgrazing. To prevent overgrazing, QNNR will closely manage livestock numbers in the Heihe River valley.
41. Terrestrial Fauna. Species of terrestrial fauna along Heihe River are periodically reliant on the river for water supply. Maintenance of minimum environmental flows will ensure sufficient water supply for these communities. The Gansu Environmental Protection Research Institute reports that the area surrounding the Project is not a typical habitat for any of the endangered species listed by QNNR (Table 8). However, a number of endangered species, including rock sheep (Ovis ammon) may inhabit the spruce forests located in the mountains above Heihe River (greater than 4 km from the project site).
42. Aquatic Fauna. A fish survey in the impacted section of Heihe River conducted during the project EIA, indicated the presence of limited numbers of two fish species, neither of which are endangered, seasonally migratory, or require upstream migration for spawning. Fish numbers in the reduced water flow section are anticipated to decline due to lower water levels.
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43. Environmental Flow. Potential impact on flora and fauna during the operational period includes impact on terrestrial vegetation and aquatic flora and fauna species along the 10.3 km section of Heihe River, which will be partially bypassed by diversion of water for the Erlongshan HPP. To mitigate adverse impacts, environmental flow will be maintained in the section. A minimum environmental flow of 1.5 m3/s will be maintained in the reduced water-flow section of Heihe River, as required by the Erlongshan HPP EIA. Guidance on determining environmental flow in the PRC is provided by the Notice on Environmental Flows for Run-of-the-river Hydropower Plants, issued by the State Environmental Protection Administration in 2002. While the notice recommends that environmental flow be maintained at 20% of the preconstruction lowest monthly average flow, it allows for further reduction of environmental flow due to site-specific conditions.
44. For the Erlongshan HPP, the environmental flow allocation of 1.5 m3/s represents 14% of the lowest monthly average flow (Table 4). The project EIA indicates that the environmental flow is based on comparison of minimum flows in nearby Xiliushui Creek, which has a similar environmental setting, including number of trees and similar flora and fauna habitats. The proposed environmental flow consists of (i) 1.0 m3/s to be discharged directly to Heihe River from the Erlongshan HPP intake structure (Sandaowan HPP discharge structure), and (ii) 0.5 m3/s from the six creeks discharging to Heihe River between the Sandaowan weir site and Erlongshan HPP. The actual minimum flow in the impacted river section may be higher due to environmental flow contribution (2.2 m3/s) from the Sandaowan HPP, located directly upstream of Erlongshan HPP. This discharge is in addition to the environmental flow allocation rediverted to the Heihe River at the Erlongshan intake structure from the Sandaowan HPP discharge structure. This allocation has not been included in the Erlongshan environmental flow calculations for conservative design purposes. Actual flows will be periodically higher in the 10.3 km section during rainfall events and when flow discharges exceed the Erlongshan HPP capacity. The HPP capacity is 98 m3/s, which is anticipated to exceed during the peak flow period in the middle of each year (Table 4).
G. ACCESS ROADS AND TRANSMISSION LINES
45. The Project includes 38.6 km of 110 kV transmission line and 31 km of access road. Both the access road and the transmission line are shared facilities of the existing and proposed HPPs along Heihe River. Both have already been constructed to support preliminary site preparation works and to service the upstream Sandaowan HPP. The access road consists of a single dead-end road along Heihe River to provide access the HPPs. The road has no other users. The transmission line is located along the access road and does not have a separate access road. Where relevant, environmental impacts of these facilities are discussed in the relevant sections.
H. SOCIOCULTURAL ENVIRONMENT
46. Construction Period. The Project does not require any resettlement. All permanent and temporarily acquired land is government owned. The Project will not acquire any agricultural land for temporary or permanent construction requirements. Access to grazing land will be restricted for two households from Louzhuangzi village, who historically utilized the project construction area for sheep grazing during 2 months (August and September) each year. These households have been compensated by a one-off payment for loss of access to grazing land. The two households are expected to continue bringing sheep into the project area during August and September each year due to the extensive grazing area available. The Project occupies only a minor percentage of the grazing land on the surrounding slopes. The sheepherders’ access to the area has been improved by the construction of access roads.
47. The construction of the Project will promote local social and economic development, including improved education and health facilities, reduced electricity rates, improved roads, and 15 increased employment opportunities through both direct employment and development of the service industry. A peak of 1,564 workers will be required at the project site during construction. Where possible, local labor will be used during construction activities, however due to the low population density of the area, a shortage of skilled personnel is expected. To encourage development of local industries to support the growing hydropower developments of Heihe River, locally based suppliers will be used where possible. The influx of workers during construction may result in an increase in diseases, particularly sexually transmitted diseases such as AIDS. Mitigation measures will include provision of health education to workers and provision of hygienic worker accommodation.
48. Operational Period. During the operation period, about 60 new long-term jobs will be created. Preference will be given to qualified local residents. Positive impacts for residents in the project area will include (i) improved electricity supply, (ii) upgraded access roads with associated improved access to markets and health and education facilities, and (iii) improved employment opportunities and access to off-farm supplementary income.
I. INDUCED IMPACTS
49. The Project will have a number of positive induced impacts. These include support for economic development in Zhangye through provision of reliable energy supplies for development of manufacturing, tourism, and raw material processing industries. The improved economic development will assist in reducing poverty in the area. The provision of reliable energy services will reduce dependence on fuelwood for cooking and heating purposes. This will reduce the pressure on deforestation and soil loss. The Project will also assist in establishing the hydropower service industry for the region and increase the local skills levels for development of hydropower projects. This will encourage the regional development of hydropower as an alternative energy supply to coal-fired power generation, with associated relative improvements in air quality.
50. The Project may also have a number of negative induced impacts. The Project may encourage growth of Louzhuangzhi and Bajiaowan villages due to improved access roads and employment opportunities. As these areas currently have minimal utilities such as wastewater treatment and waste disposal services, environmental impacts will be experienced if sufficient public services are not provided, e.g., wastewater treatment facilities, solid waste disposal facilities. To mitigate potential impacts, the Zhangye local government will ensure that any residential developments in the vicinity of the hydropower plant are tightly monitored and have access to suitable municipal amenities. Construction of access roads to the Project will increase access to the surrounding mountains for livestock grazing, with an associated risk of overgrazing. To prevent overgrazing, QNNR will closely monitor livestock numbers in the Heihe River valley.
J. CUMULATIVE IMPACTS
51. Erlongshan HPP is one of a cascade of 8 HPPs planned for 95 km of Heihe River. Currently, two hydropower plants are in operation (total 209 MW) and 2 HPPs are under construction (total 221.4 MW). Four additional HPPs (total 305.6 MW) are planned, including Erlongshan HPP. The proposed cascade includes dams and reservoirs (six small and one medium-sized), the details of which are listed in Table 10.
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Table 10: Heihe River Cascade Hydropower Plant Details Length of Reservoir Reservoir Capacity Construction Name Capacity (MW) (km) (million m3) Status Longshou No.1 52.0 10.0 13.1 Operational Longshou No.2 157.0 8.0 86.2 Operational Xiaogushan 98.0 2.6 1.4 Under construction Dagushan 59.5 1.48 0.3 Proposed Erlongshan 50.5 0 0 Proposed Sandaowan 123.4 3.79 5.3 Under construction Huangzangsi 71.2 Under design Under design Proposed Jiadaogou 124.4 Under design Under design Proposed Total 736.0 km = kilometer, MW = megawatt, m3 = cubic meter. Source: E-mail communication with Gansu Hydropower Design Institute, 2006.
52. Erlongshan HPP is the only HPP in the cascade that does not require a weir or dam structure. The location of the existing and proposed HPPs is presented on map 3. Heihe River has the second largest inland river basin in the arid area of the PRC. The river consists of three sections; (i) upper mountain areas fed by precipitation and glaciers, (ii) middle oasis area, and (iii) lower arid areas. Since the 1960s, environmental degradation in the middle oasis area and the lower arid areas has been increasing due to large-scale water diversion for irrigation and industrial purposes. The increase in water extraction in the middle oasis area has resulted in water shortages in the lower arid areas. The increased irrigation in the middle oasis areas has resulted in increased soil salinization and associated productivity losses. In the lower arid areas, reduced water supply has increased desertification. The proposed Heihe River HPP cascade includes seven dams (six small and one medium-sized) which will regulate flow on a daily basis only. As there will be no large-scale reservoir in the cascade, the annual flow discharge patterns will not be altered for downstream users. The cascade will not change the volume of water available significantly, with the exception of evaporation losses from the reservoirs.
53. Within the cascade, diversion of water into tunnels for hydropower generation will result in a total of about 45 km of Heihe River with a reduced flow. The development of the Heihe cascade was assessed in the Heihe River (Huangzangsi to Dagushan) Cascade Development Report, 2004 prepared by the Gansu Water Conservancy and Hydropower Survey Design Institute. The main environmental impacts from the cascade development will include
(i) build up of sediment in reservoirs,
(ii) increased water loss through evaporation,
(iii) habitat destruction along the Heihe River banks in reservoir areas,
(iv) creation of microclimates around small reservoirs,
(v) changes in groundwater and surface water interaction, and
(vi) reduction of fish populations in the reduced flow river sections. However total fish numbers may increase due to reservoir construction. Recent fish surveys indicate the presence of two fish species, neither of which is migratory or endangered.
54. Mitigation measures to minimize environmental impacts from the proposed cascade include (i) maintenance of environmental flows on a project-by-project basis, (ii) overall environmental management of the projects by QNRR administration, and (iii) close coordination by hydropower 17 operators, Zhangye government officials, and downstream water users to ensure coordinated resource management.
VI. ECONOMIC ASSESSMENT
A. ENVIRONMENTAL COSTS
55. The total project investment is CNY355 million ($44 million), equal to approximately CNY7,030/kW. The Project can produce 173.9 million kWh annually. The total environmental investment of the Project is CNY4.79 million ($0.59 million), accounting for 1.3% of the total project investment. The environmental investment covers temporary environmental protection measures, permanent environmental protection measures, and environmental monitoring.
Table 11: Estimated Environmental Management Costs No. Item Costs (CNY 10,000) A. Temporary Environmental Protection Measures 132.10 1. Water environmental protection Treatment of construction wastewater 46.94 Treatment of residential wastewater 18.95 2. Protection of air environment 18.75 3. Noise control measures 0.10 4. Ecological restoration measures Water and soil conservation measures 17.62 Information dissemination 0.45 5. Public health protection measures Clearance of hygiene 3.39 Infection survey and examination plan 7.90 Rubbish treatment 18.00 B. Water and Soil Conservation Measures 318.94 C. Monitoring 17.18 1. Monitoring during project construction Water environment monitoring 1.82 Air environment monitoring 0.54 Noise monitoring 0.94 Survey of ecological environment 3.00 Water and soil loss monitoring 2.48 2. Monitoring during initial operation 8.40 D. Independent Costs 11.38 1. Environmental supervision 5.69 2. Environmental management 5.69 Total 479.60 Source: Gansu Environmental Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
B. ENVIRONMENTAL BENEFITS
56. The Project will generate substantial positive environmental benefits through avoided air pollution from alternative energy sources. Avoided air pollution will have associated local, regional, and global impacts from avoided increases in particulate matter, sulfur dioxide, nitrogen oxides, carbon dioxide, and other air pollutants. The system planning and least cost analysis concludes that the next generation alternative would be coal-fired thermal power generation. Based on this alternative, the avoided emissions were estimated at a yearly average of 120 t total suspended particulate, 955 t sulfur dioxide, 750 t nitrogen oxides, and 183,000 t carbon dioxide. The hydropower plant will provide more reliable electricity supply in the project area. This will provide an option to burning coal and biomass for cooking, with associated improvements in indoor air quality.
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VII. ENVIRONMENTAL MANAGEMENT AND ENVIRONMENTAL MONITORING PLAN
57. Institutional Structure. The Gansu Financial Bureau (GFB) is the Executing Agency for this Project and has overall responsibility for ensuring that all environmental standards and procedures are followed. GFB has selected the Heihe Hydropower Company (HHC) to construct and operate the Project, HHC will be the project Implementing Agency. Prior to project construction, HHC will set up an environmental management unit (EMU) for environmental management and operation, including environmental supervision of contractors. The EMU will ensure implementation of the environmental management plan and environmental monitoring plan during construction and operation of the Project. The EMU will be staffed by a project manager and at least two technical personnel. The EMU will prepare twice annual environmental monitoring reports for submission to GFB and ADB. The construction contractor will designate an environmental representative, who will be responsible for the environmental management of construction activities during project construction.
58. Environmental Management Plan. The summary environmental management plan (EMP), included in the Appendix, is based on the full EMP, included in the EIA report. HHC will translate the SEIA, including the summary EMP, into Mandarin Chinese. HHC will ensure that the SEIA (including summary EMP), the full EMP (included in the EIA report), and the soil erosion control plan (included in the water and soil conservation report) are included in all contractor bidding documents and operating contracts. The EMU will be responsible for implementing the EMP and soil erosion control plan during project construction and operation. The EMU will ensure that the EMP is updated periodically during construction.
59. Environmental Monitoring Plan. The EMU will (i) ensure the environmental monitoring plan from the EIA is included in all contractor bidding documents and construction contracts, (ii) ensure that the environmental monitoring plan is updated, as required, during project construction and operation, (iii) coordinate all environmental monitoring activities, and (iv) submit environmental monitoring reports (including physical data) to GFB and ADB semiannually during construction and annually for 2 years after completion of construction. The monitoring reports will include details of EMP implementation. A framework of the EMP is presented in Table 12.
Table 12: Environmental Monitoring Framework Reporting Frequency Area to Be Monitored Competent Authority Risks to ADB Environmentally Protected Qilianshan National Nature Various Twice annually Areas Reserve Administration Earthworks Disposal and Water Resources Bureau Loss of water and soil Twice annually Erosion Disturb residents and Noise Abatement Local EPB Twice annually construction workers Air Quality (construction sites) Local EPB Respiratory problems Twice annually Spread disease, contaminate Wastewater and Surface Water Local EPB Twice annually waterways ADB = Asian Development Bank, EPB = environmental protection bureau. Source: Gansu Environmental Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
60. Environmental Management Bureaus. Zhangye EPB currently has 62 staff, including 20 officials, 20 staff for environmental supervision, and 22 staff at the Zhangye Environmental Monitoring Station (ZEMS). ZEMS is responsible for conducting a range of environmental monitoring at the Project, such as noise, air, and water quality. ZEMS has considerable environmental monitoring experience with hydropower plants. Currently, the professional and equipment capacity of ZEMS is sufficient for the environmental monitoring requirements of the proposed Project. 19
VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE
A. STAKEHOLDER CONSULTATION BEFORE THE ENVIRONMENTAL IMPACT ASSESSMENT
61. In July 2004, during preparation of the EIA report, the Gansu Environmental Protection Research Institute conducted a series of stakeholder consultation exercises for the Project. The results were used to modify the EIA and project design. The stakeholder consultation exercises comprised
(i) disseminating project information to the public through print media;
(ii) holding consultation meetings with relevant government agencies, including QNNR Administration, Sunan EPB, Sunan Forest Bureau, Sunan Civil Affairs Bureau, Zhangye EPB, Zhangye Ganzhou EPB, Heihe Hydropower Company, Gansu EPB, First Railway Design Institute, Atmosphere Branch of China Academy of Sciences, Lanzhou University, Gansu Hydropower Design Institute, and Lanzhou Dry Climate Research Institute;
(iii) holding a meeting of experts in July 2004 in Lanzhou to review the outline of the EIA report, and receive comments for EIA report preparation; and
(iv) randomly issuing 100 public consultation questionnaires in the project area.
62. During July 2004, the Gansu Environmental Protection Research Institute distributed the public consultation questionnaires in the immediate project area, Sunan urban areas, as well as selected government departments of Zhangye. The multiple choice questionnaire was issued to 100 people and 100 valid responses were received. The survey is considered to have covered a sufficient number of respondents in the project area and an acceptable demographic cross section. A breakdown of the respondents is provided in Table 13.
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Table 13: Summary of Pre-Environmental Impact Assessment Survey Respondents Number of Classification Respondent Details Percent Respondents Male 83 83 Number Female 17 17 Surveyed Total 100 100 <25 4 4 25–45 28 28 Age Distribution 46–55 45 45 >55 14 14 Junior high school or below 48 48 Senior high school and technical Education Level 11 11 secondary school Junior college or above 41 41 Worker 25 25 Farmer and herder 20 20 Technical personnel 5 5 Urban resident 10 10 Occupation Teacher and student 20 20 Representative of People’s Congress and 7 7 political consultation member Environmental experts and other 3 3 Source: Gansu Environment Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment.
63. Based on the survey, 98% of the respondents had a positive attitude toward development of the Project, while 2% answered negatively. The most important environmental concerns about the Project related to landscape destruction and noise pollution. Specific comments included (i) the Project should enhance protection of the ecological environment, (ii) more attention should be given to a balance between ecological impacts and economic benefit, (iii) solid waste should be collected and treated effectively, and (iv) water resources should be preserved.
Table 14: Pre-Environmental Impact Assessment Survey Results Number of No. Survey Content Percent Respondents Are you satisfied with the Satisfied 73 73 1 environmental conditions in the Acceptable 26 26 project area? Not satisfied 1 1 Degradation of forests 38 38 What is the main environmental issue Erosion 13 13 2 in the project area? Inappropriate use of 52 52 water resources Landscape destruction 38 38 Pollution from solid What are your main environmental 12 12 waste 3 concerns regarding the project Ecological impact 18 18 construction? Noise pollution 34 34 Water pollution 10 10 Yes 95 95 Do you think the Project can promote No impact 5 5 4 local economic development? Hinder economic 0 0 development Very necessary 54 54 What is your attitude toward the 5 Necessary 44 44 Project? Unnecessary 2 2 Increase 77 77 How do you think the Project will 6 Decrease 2 2 impact your living quality? No impact 18 18 Source: Gansu Environment Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment. 21
B. STAKEHOLDER CONSULTATION AFTER THE ENVIRONMENTAL IMPACT ASSESSMENT
64. In March 2006, ADB project preparatory technical assistant consultants conducted a series of stakeholder consultation exercises for the Project, including discussion of environmental issues identified in the EIA. The post-EIA stakeholder consultation exercises comprised the following:
(i) Interviews were conducted on 1 March 2006 with government officials from Zhangye EPB, ZEMS, QNNR Administration, and the Erlongshan HPP project owner.
(ii) Individual interviews were conducted on 2 March 2006 with impacted households from Louzhuangzi village.
(iii) Questionnaires were conducted with 20 local residents from Louzhuangzi village.
65. Separate discussions were held with two households that traditionally herded sheep in the vicinity of the Project during August and September each year and will have reduced access to pastureland because of the Project. The households indicated that they had been compensated a combined total of CNY71,000 ($8,800) for loss of usage of pastureland. The questionnaire results indicate that 100% of the people surveyed agree with the construction of Erlongshan HPP. The results of the questionnaire are summarized in Table 15.
Table 15: Summary of Post- Environmental Impact Assessment Survey Respondents Classification Respondent Details Number of Respondents Percent Male 16 80 Number Female 4 20 Surveyed Total 20 100 <25 2 10 25–45 10 50 Age Distribution 46–55 7 35 >55 1 5 Junior high school of below 15 60 Senior high school and technical Education Level 4 20 secondary school Junior college or above 1 5 Doctor 1 5 Occupation Farmer and herders 19 95 Source: Survey by the project preparatory technical assessment consultants.
66. The most important environmental concerns about the Project related to pollution from solid waste, ecological destruction, and surface water pollution. Specific comments include (i) job opportunities for herders’ families should be maximized, (ii) the powerhouse site should be landscaped appropriately, and (iii) the ecological environment should be protected. A summary of the survey results are presented in Table 16.
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Table 16: Post-Environmental Impact Assessment Survey Results No. Survey Content Number of Respondents Percent Are you satisfied with the Satisfied 18 90 1 environmental conditions in the Acceptable 2 10 project area? Not satisfied 0 0 What is the main impact of the Pollution from solid waste 3 15 2 project construction on the Ecological impact 1 5 environment? Surface water pollution 1 5 Yes 20 100 Do you think the Project can No impact 0 0 3 promote local economic Hinder economic development? 0 0 development Very necessary 17 85 What is your attitude toward the 4 Necessary 3 15 Project? Unnecessary 0 0 Increase 20 100 How do you think the Project will 5 Decrease 0 0 impact your living quality? No impact 0 0 Source: Survey by the project preparatory technical assessment consultants . IX. CONCLUSION
67. The Erlongshan Hydropower Project consists of a 50.5 MW run-of-the-river hydropower plant located on Heihe River in Gansu Province. The estimated total investment for the Project is $44 million and the proposed construction period is 3 years. The primary function of the Project is to provide baseload electric power generation. Annual electricity generation will be 174 million kWh. No dam construction or impounded water reservoirs are associated with this Project. The Project will occupy 24.86 ha of land, including 9.13 ha of permanently occupied land and 15.73 ha of temporarily occupied land. No resettlement is required. Major potential environmental impacts from the Erlongshan Hydropower Project include (i) soil erosion, (ii) impact on flora and fauna along the section of Heihe River with reduced water flow, (iii) protection of QNNR, and (iv) impact on surface water quality. Potential environmental impacts have been identified and measures developed to mitigate the impacts. Based on the results of the EIA, the adverse environmental impacts of the Project can be minimized to acceptable levels by implementing adequately funded environmental management activities.
SUMMARY ENVIRONMENTAL MANAGEMENT PLAN
Environmental Mitigation Measures Location Time Frame Responsibility Impact/Issue Implementation Supervision A. Construction Phase 1. Soil Loss of topsoil Loss of topsoil will be avoided by stripping and storing topsoil (where present) prior to All construction Construction Contractor WRB, EMU construction and reusing it for rehabilitation works. sites Rehabilitation of Sand and coarse aggregate requirements will be mined from two sites, Liushuyuan All borrow areas Construction Contractor WRB, EMU borrow areas and Duantougou borrow pits. At these sites, soil cover is thin and vegetation is and temporarily and temporarily sparse. Mining will be undertaken in sections with rehabilitation undertaken acquired land acquired land immediately after excavating to prevent erosion. Rehabilitation will include (i) regrading slopes to minimize erosion, (ii) replacing stockpiled soil cover, (iii) replanting grass, shrubs, and trees, (iv) installing sediment runoff control devices, and (v) ensuring ongoing erosion monitoring. Soil erosion and Soil erosion and siltation will be minimized by preventive measures implemented on a All construction Construction Contractor WRB, EMU siltation case-by-case basis, such as planting shrubs and grass, and appropriately engineered sites and access storm-water diversions. Potential soil erosion from the construction of the access roads road will be minimized by appropriate road engineering including appropriate road compaction and runoff design. Soil Soil contamination will be prevented by installing oil separators at wash-down and Hydropower Construction Contractor EPB, EMU contamination refueling areas, and by installing secondary containment at fuel storage sites. plant and material storage areas Disposal of Excavated rock and aggregate will be used in embankment construction to the Waste rock site Construction Contractor WRB, EMU excess maximum extent possible. Two sites have been selected to dispose of excess spoil 1 and 2 earthworks where the catchment area is minimal, landslide potential is low, and flooding is not expected. Sites will be covered with soil and planted with shrubs and grasses. 2. Wastewater Disposal of Wastewater discharge during the construction phase will consist of about 31 t/d Work camps Construction Contractor EPB, EMU septic sanitary wastewater effluent discharge from the work camps. All wastewater will be wastewater treated to national standards and then recycled on-site. No direct discharge of untreated sanitary waste will be made to surface water bodies. Truck and other vehicle maintenance will be strictly controlled to prevent discharge of waste oil into the river.
3. Air Quality App Generation of The main impact to air quality during construction will be from increased dust levels All construction Construction Contractor EPB, EMU dust from construction machinery, tunnel and adit construction, rock blasting, foundation sites, all access 23 endix excavation, cement mixing and road construction. Dust generation from construction roads traffic will be mitigated by using water spray trucks for dust suppression.
Environmental Mitigation Measures Location Time Frame Responsibility Impact/Issue Implementation Supervision 24 Appendix 4. Noise Noise impacts During construction, noise will be generated from vehicular movements, sand and All blasting sites During Contractor EPB, EMU aggregate processing, concrete mixing, excavation machinery, construction noise (cuts, rock blasting and blasting. The main potential impact of high noise levels will be on construction quarries, tunnels activities workers. Due to the absence of residential areas within 20 kilometers of the Project, etc.). no major impacts are anticipated on residential areas. Mitigation measures for noise impacts on construction workers will include standard occupational health and safety practices such as ear protection and enforcement of exposure duration restrictions. 5. Solid Waste and Hazardous Materials Hazardous and (i) Disposal of domestic waste and construction waste will occur regularly to Power plant, Construction Contractor EMU, EPB nonhazardous approved disposal sites. accommodation waste (ii) No landfills will be developed on-site. area (iii) Hazardous waste will be collected and stored on-site in approved facilities according to relevant standards. Hazardous waste will then be removed from the site to approved hazardous waste disposal facilities. Hazardous Potential impacts to the environment are from accidental spillages affecting soil, Power plant, Construction Contractor EMU, EPB materials groundwater, and adjacent water bodies. Mitigation measures to prevent spillage will accommodation include installing appropriate hazardous materials storage facilities. area 6. Impact on Flora Impact to flora (i) Some vegetation will be removed at the construction sites (hydropower plant, Entire project Construction Contractor EMU, access roads, and work camps). All works will be carried out to minimize site QNNR damage or disruption to vegetation. After completion of construction activities, Bureau temporarily occupied areas will be replanted. (ii) Construction activities will require removal of a small number of trees. The QNNR Bureau, which maintains a record of all trees in the proposed construction areas, requires compensatory planting for any tree removed during construction. Additionally a fine will be paid to QNNR for every tree removed during construction. All vegetation at the project site is widely distributed and no threatened habitats will be reduced due to construction activities. (iii) Due to the temporary increase in workers to the construction site, the potential for illegal fuelwood collection is increased. Mitigation measures will include (a) provision of adequate heating and cooking facilities, and (b) provision of environmental training on environmental management issues including penalties for illegal fuelwood collection. (iv) Improvement of access roads to the Erlongshan HPP site will increase access to the surrounding mountains for livestock grazing, with potential of overgrazing. To prevent overgrazing, the QNNR will supervise livestock numbers in the Heihe River valley. 7. Impact on Fauna Impact to fauna (i) Because of the temporary increase in workers to the construction site, the Entire project Construction Contractor EMU, potential for illegal animal poaching is increased. Mitigation measures will site QNNR include provision of environmental training on environmental management Bureau issues including penalties for illegal poaching. (ii) Construction activities will disturb the habitat of terrestrial animals immediately
Environmental Mitigation Measures Location Time Frame Responsibility Impact/Issue Implementation Supervision adjacent to the project site. This may result in movement of wildlife from the project vicinity. However, no protected species live in the immediate vicinity of the project site. The impact is anticipated to be temporary during construction and while wildlife adapts to the presence of the HPP. 8. Social Impact Impact to (i) The Project does not require any resettlement. All permanent and temporarily Residents in Construction HHC HHC livelihoods of acquired land is government owned. No agricultural land is impacted by the Project area residents project construction. (ii) Access to grazing land will be restricted for two households in Louzhuangzi village that historically utilized the project construction area for sheep grazing during August and September each year. These families have been compensated for loss of grazing land. (iii) The construction of the Project will promote local social and economic development, including the improvement of education and health facilities, reduced electricity rates, road improvement and employment opportunities through both direct employment and through development of the service industry. A peak of 1,564 workers will be required at the project site during construction. Where possible, local labor will be used during construction activities, however due to the low population density of the area, a shortage of skilled personnel is expected. To encourage development of local industries to support the growing hydropower developments of Heihe River, locally based suppliers will be used where possible. (iv) The influx of workers during the construction period may result in an increase in diseases, particularly sexually transmitted diseases such as AIDS. Mitigation measures will include provision of health education to workers and provision of hygienic worker accommodation. B. Operation Phase Soil (i) Soil contamination will be prevented by installing oil separators at wash-down Powerhouse site Operation HHC WRB and refueling areas, and by installing secondary containment at fuel storage and water outlet sites. All hazardous wastes and hazardous materials will be stored in properly designed storage facilities. (ii) Scour at the water outlet will be minimized through appropriate engineering design such as placement of erosion protection gabion mattresses. Wastewater Wastewater will be generated from canteens and septic wastewater in the Hydropower Operation HHC EPB disposal hydropower plant and residential areas. The wastewater generation from the plant and residential area will be about 5.28 t/d. The wastewater will be treated to grade I of accommodation the Discharge Standard of Wastewater (GB8978-1996), and will be recycled on-site. area App Noise impacts Noise will be generated from the pumps, air compressors, and generators. Noise Hydropower Operation HHC EPB reduction measures will be taken, where required, to reduce the noise level at the plant ni 25 endix project boundary to meet category II of the Urban Environmental Noise (GB3096-93) and requirements of Noise Standards at Industrial Facility Boundary (GB12348-1990). Mitigation measures during operation for noise impacts on workers will include standard occupational health and safety practices.
Environmental Mitigation Measures Location Time Frame Responsibility Impact/Issue Implementation Supervision 26 Appendix Solid waste Domestic and industrial wastes from the hydropower plant and accommodation Hydropower Operation HHC EPB disposal facilities will be disposed of in existing approved municipal and hazardous waste plant and disposal sites. No landfills will be developed on-site. Storage, collection, and accommodation disposal of hazardous wastes will be conducted in conformance with relevant PRC area regulations. Reduced water To mitigate adverse impacts, a minimum environmental flow of 1.5 m3/s will be River section Operation HHC QNNR flow at affected maintained in the section. Maintenance of minimum environmental flows will ensure with reduced Bureau, WRB river section water supply for flora and fauna habitats along this section. water flow Social Impact During the operational period, about 60 new long-term jobs will be created. Residents in the Operation HHC HHC Preference will be given to local residents who are qualified for these jobs. project area m3/s = cubic meters per second, t/d = metric tons per day, EIA = environmental impact assessment, EMU = Environment Management Unit, EPB = environmental protection bureau, HHC = implementing agency, PRC = People’s Republic of China, QNNR = Qilianshan National Nature Reserve, WRB = water resources bureau. Source: Gansu Environment Protection Research Institute. 2004. Erlongshan Environmental Impact Assessment, PPTA Consultants