Initial Environmental Examination

July 2005

People’s Republic of : Flood Management Sector Project (Xinhua City Core Subproject)

Prepared by SOGREAH Consultants for the Hunan Provincial Project Management Office and the Asian Development Bank.

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

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

PEOPLE REPUBLIC OF CHINA

ASIAN DEVELOPMENT BANK

HUNAN WATER RESOURCES

DEPARTMENT

HUNAN FLOOD MANAGEMENT PROJECT

TA 4324-PRC

XINHUA CITY INITIAL

ENVIRONMENTAL EXAMINATION (IEE)

JULY 2005 13401501.R4 (E7)

ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

TABLE OF CONTENTS

1. INTRODUCTION ...... 1 1.1. BACKGROUND CONTEXT AND REPORT OBJECTIVES ...... 1 1.2. HUNAN FLOOD MANAGEMENT PROJECT - OVERVIEW...... 2 1.3. XINHUA URBAN FLOOD CONTROL CORE SUBPROJECT ...... 3 1.3.1. OVERVIEW...... 3 1.3.2. SUBPROJECT PROPONENT...... 5 2. ENVIRONMENTAL ASSESSMENT REQUIREMENTS AND REGULATORY FRAMEWORK ...... 7 2.1. PRC ENVIRONMENTAL ASSESSMENT REQUIREMENTS ...... 7 2.1.1. KEY LAWS, GUIDELINES AND PROCEDURES...... 7 2.1.2. PROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER PRC REGULATIONS...... 8 2.2. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS ...... 8 2.3. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS UNDER A SECTOR MODALITY...... 9 2.4. PROJECT AND SUBPROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER ADB REQUIREMENTS ...... 9 2.4.1. ENVIRONMENTAL CATEGORIZATION...... 9 2.4.2. PROJECT REVIEW PROCESS ...... 9 2.4.3. SUBPROJECT REVIEW PROCESS...... 10 3. DESCRIPTION OF THE XINHUA CORE SUBPROJECT ...... 11 3.1. TYPE, RATIONALE AND PURPOSE ...... 11 3.2. SUBPROJECT OVERVIEW...... 11 3.3. LOCATION...... 12 3.4. CONSIDERATION OF ALTERNATIVES ...... 16 3.5. DETAILED DESCRIPTION ...... 17 3.5.1. DIKES ...... 17 3.5.2. DRAINAGE WORKS...... 17 3.5.3. CULVERT GATE...... 17 3.5.4. PUMPING STATIONS...... 19 3.5.5. DRAINAGE COLLECTOR CHANNEL...... 19 3.5.6. RIVER REHABILITATION AND DREDGING ...... 19 3.5.7. BORROW PITS AND SPOIL PILES...... 20 3.5.8. BUDGET...... 20 3.5.9. IMPLEMENTATION SCHEDULE...... 21 4. DESCRIPTION OF THE ENVIRONMENT ...... 22 4.1 PHYSICAL RESOURCES...... 22 4.1.1 TOPOGRAPHY...... 22 4.1.2 GEOLOGY AND SEISMOLOGY ...... 22 4.1.3 CLIMATE ...... 23 4.1.4 SURFACE WATER...... 23 4.1.4.1 HYDROLOGY AND FLOODING ...... 23

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4.1.5 AIR QUALITY...... 26 4.2 ECOLOGICAL RESOURCES...... 26 4.2.1 VEGETATION...... 26 4.2.2 TERRESTRIAL AND AQUATIC WILDLIFE...... 27 4.2.3 FISHERIES...... 27 4.2.4 PROTECTED AREAS AND NATURE RESERVE...... 27 4.3 SOCIOECONOMIC CONDITIONS ...... 27 4.3.1 DEMOGRAPHIC PROFILE...... 27 4.3.2 ECONOMIC PROFILE...... 28 4.3.3 POVERTY PROFILE...... 28 4.3.4 MINORITY PROFILE...... 29 4.3.5 ARCHAEOLOGY, CULTURAL AND RECREATIONAL PROFILE ...... 29 5 SCREENING OF POTENTIAL IMPACTS AND MITIGATION...... 30 5.1 APPROACH TO ENVIRONMENTAL SCREENING...... 30 5.2 SITING ...... 30 5.2.1 LAND ACQUISITION AND RESETTLEMENT...... 30 5.2.2 AGRICULTURE PRODUCTION...... 41 5.2.3 ECOLOGICAL RESOURCES...... 42 5.2.4 HISTORICAL AND CULTURAL VALUES...... 42 5.2.5 TRANSPORTATION...... 43 5.2.6 MINERAL RESOURCES...... 43 5.2.7 PUBLIC FACILITIES...... 43 5.3 CONSTRUCTION ...... 44 5.3.1 HYDROLOGY...... 44 5.3.2 WATER QUALITY...... 44 5.3.3 SOLID WASTE...... 46 5.3.4 AIR QUALITY...... 47 5.3.5 NOISE...... 48 5.3.6 FLORA...... 48 5.3.7 FAUNA...... 49 5.3.8 AQUATIC LIFE...... 50 5.3.9 PUBLIC SAFETY...... 50 5.4 OPERATION ...... 51 5.4.1 HYDROLOGY...... 51 5.4.2 WATER QUALITY...... 52 5.4.3 FLORA AND FAUNA ...... 52 5.4.4 AIR QUALITY...... 52 5.4.4.1 POTENTIAL IMPACT ...... 52 5.4.4.2 RECOMMENDED MITIGATION MEASURES...... 53 5.4.5 TRAFFIC...... 53 5.4.6 PUBLIC SAFETY...... 53 6 PUBLIC CONSULTATION...... 54 6.1 BENEFICIARY IDENTIFICATION...... 54 6.2 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ACTIVITIES ...... 54 7 ENVIRONMENTAL MANAGEMENT PLAN ...... 58

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7.1 EMP DEVELOPMENT AND PURPOSE ...... 58 7.2 ENVIRONMENTAL MITIGATIONS...... 58 7.3 ENVIRONMENTAL MONITORING...... 58 7.3.1 COMPLIANCE MONITORING...... 59 7.3.2 AMBIENT MONITORING...... 59 7.4 INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES ...... 59 7.5 ENVIRONMENTAL SPECIFICATIONS FOR CONTRACTOR(S) ...... 60 7.6 CAPACITY BUILDING REQUIREMENTS ...... 60 7.7 BUDGET FOR EMP IMPLEMENTATION...... 60 8 FINDINGS AND RECOMMENDATIONS ...... 63 8.1 FINDINGS ...... 63 8.2 RECOMMENDATIONS...... 64

9 CONCLUSION...... 65

LIST OF TABLES

Table 1-1: Summary of the 36 Subproject Key Characteristics ...... 4

Table 3-1: Summary of the Xinhua Subproject Key Characteristics ...... 13 Table 3-2: Dike Characteristics ...... 17 Table 3-3: Gates Characteristics...... 17 Table 3-4: Pumping Station Characteristics...... 19 Table 3-5: Characteristics Of Open Channel Drainage Collector Channel...... 19 Table 3-6: Characteristics Of Piped Drainage for 3 Sub-areas...... 19 Table 3-7: Main Quantities, River Rehabilitation...... 20 Table 3-8: Cost Estimates for Xinhua County Urban Flood Control Subproject ($ million) ...... 21

Table 4-1: Climate Characteristics ...... 23 Table 4-2: Basic Parameters, Environmental Quality Standards for Surface Water (GB3838-2002), National Standards of the People's Republic of China...... 25 Table 4-3: Water Quality Monitoring Results, 2004 ...... 25 Table 4-4: Air Quality Monitoring, Xinhua County, 2004 (unit mg/Nm3)...... 26 Table 4-5: Demographic Profile of Xinhua and Hunan Province ...... 28 Table 4-6: Economic Profile of Xinhua and Hunan Province (2002)...... 29 Table 4-7: Poverty Profile, Xinhua and Hunan Province (2003) ...... 29

Table 5-1: Summary Screening of Potential Impacts on Natural and Social Environment, Xinhua City Subproject ...... 31 Table 5-2: Water Surface Profile at Xinhua for Various Flood Frequencies (Without/With Project)...... 52

Table 6-1: Public Consultation and Participation Activities ...... 55 Table 6-2: Positive Impacts Identified by Different Groups of Beneficiaries ...... 57

Table 7-1: Estimated EMP Budget, Xinhua Subproject ...... 61

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LIST OF FIGURES

Figure 1-1: Core and Non-core Subproject Locations, Hunan Flood Management Project...... 6

Figure 3-1: Xinhua Subproject Site Layout ...... 14 Figure 3-2: Xinhua Subproject Landuse ...... 15 Figure 3-3: Typical Dike Cross-Section ...... 18

APPENDICES

Appendix I: Site Photographs Appendix II: Site Visits

LIST OF ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank BOD Biochemical Oxygen Demand CCO Chief Compliance Officer CO Carbon Monoxide COD Chemical Oxygen demand DO Dissolved Oxygen EA Executing Agency EFI Environmental Field Inspector EIA Environmental Impact Assessment EMDP Ethnic Minority Development Plan EMP Environmental Management Plan EPB Environmental Protection Bureau ESD Environmental and Social Division ESIHP Environmental Science Institute of Hunan Province FSP Facilities Siting Plan FSR Feasibility Study Report GDP Gross Domestic Product GOC Government of China HEPB Hunan Environmental Protection Bureau HHPDI Hunan Hydro and Power Design Institute HPG Hunan Provincial Government IEE Initial Environmental Examination JBIC Japan Bank for International Cooperation LLG Local Leading Group Mu Area unit (mu) equivalent to 1/15 ha NDPC National Development Planning Committee NGO Non-Government Organization NO2 Nitrogen Dioxide PDRC Provincial Development and Reform Commission PFD Provincial Finance Department PIU Project Implementation Unit PLG Project Leading Group PMO Project Management Office (Subproject level) PPMO Provincial Project Management Office

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PRC People’s Republic of China PWRD Provincial Water Resources Department RP Resettlement Plan SEIA Subproject Environmental Impact Area SEPA State Environmental Protection Administration SIEE Summary Initial Environmental Examination SO2 Sulphur Dioxide SPIA Social/Poverty Impact Assessment SS Suspended Solids SSA Subproject Study Area TA Technical Assistance TN Total Nitrogen TP Total Phosphorous TSP Total Suspend Particulates

CURRENCIES

CNY = RMB Chinese Yuan (Renminbi) USD United States Dollar Conversion rate: 1 USD = 8.27 CNY

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ADDENDUM:

This document was completed in April 2005, several months prior to loan fact finding (LFF - June 2005). During LFF it was agreed that the overall project loan would be capped at $200 million. In addition, further detail was requested on some environmental aspects. Therefore, this report should be read with the understanding that changes agreed at LFF stage have not been incorporated into this document.

The additional work to revise this and the other Project environmental reports will be completed by the PPTA environmental team under a separately supported ADB staff consultancy. Updated reports will be produced in August 2005 that will contain:

1. Updated costs in view of adjustments to the project with a capped ADB loan of $200 million for all participating subprojects;

2. Additional detail on proposed mitigation actions and responsibilities; and

3. A more detailed site specific environmental management plan (EMP), based on additional survey work to be undertaken by Hunan Hydro and Power Design Institute.

Revisions will be made to the consolidated IEE, SIEE, EMP, and to selected core subproject IEEs. These revisions will draw heavily on the earlier PPTA Core Subproject IEE reports and the overall Project consolidated reports, but will be strengthened by the inclusion of more substantive detail as called for at the loan fact finding. The presentation of additional survey data that was only recently made available and the completed overall project domestic EIA, now being finalized by ESI, will be major inputs into the revision process.

Ben Hallam

PPTA Team Leader, June 27, 2005.

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1. INTRODUCTION

1.1. BACKGROUND CONTEXT AND REPORT OBJECTIVES

T.A. No. 4324-PRC: Hunan Flood Management Project (the TA) is assisting the Hunan Provincial Government (HPG) in (i) reviewing, assessing and identifying the most cost effective flood protection measures for the four mountain rivers of Hunan Province; (ii) preparing a feasibility study for respective subprojects; and, (iii) formulating a project for improved flood management in the four mountain rivers for funding by the Asian Development Bank (ADB).

The objectives of the TA are:

- prepare a Feasibility Study Report, including an assessment of the financial, economic, social and environmental impacts of the Project in accordance with policies and guidelines of the ADB;

- formulate the Hunan Flood Management Project (the loan project, hereafter referred to as the Project) to reduce flood hazards and damages in the mountainous area of Hunan Province, including improving flood management within the context of integrated river basin management; and,

- prepare a final report that includes updated / strengthened subproject feasibility study reports for selected subproject locations, and a consolidated final report covering overall feasibility, environmental impact, resettlement plans, and financial and economic analyses.

Under the Structural Flood Control Component of the proposed Project 36 urban flood control subprojects have been identified by HPG. The Hunan Hydro and Power Design Institute (HHPDI) have developed initial feasibility studies for each subproject. As the proposed Project will be implemented under a sector type approach1, eight priority core subprojects will be developed in full to the ADB-standard feasibility level during the TA implementation. These are:

(i) City Urban Flood Control Subproject;

(ii) Wugang City Urban Flood Control Subproject;

(iii) City Urban Flood Control Subproject;

(iv) City Urban Flood Control Subproject;

(v) Chenxi City Urban Flood Control Subproject;

(vi) City Urban Flood Control Subproject;

(vii) Xinhua Urban Flood Control Subproject; and,

(viii) Sangzhi City Urban Flood Control Subproject.

1 Asian Development Bank Aide Memoire, November 2004

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The remaining subprojects will be developed to feasibility level during the Project implementation.

The selection of the core subprojects was based on size of investment, geographical representation of the watersheds in the province, severity of environmental and resettlement impact, severity and types of flooding, types of proposed flood protection measures, impact on indigenous peoples, and poverty impact.

In accordance with the environmental requirements of the ADB as detailed later in this report, an Initial Environmental Evaluation (IEE) is being prepared for each subproject. This report presents the IEE for the Xinhua City Urban Flood Control Subproject (the Subproject).

The purpose of this IEE report with respect to the proposed Subproject is to:

(i) describe the PRC and ADB environmental assessment processes under which the overall Project and this subproject have been reviewed;

(ii) describe the proposed Subproject interventions;

(iii) describe the baseline environmental and socioeconomic setting of the Subproject study area;

(iv) undertake a screening to identify proposed Subproject interventions that may result in significant environmental impacts;

(v) predict and assess characteristics and magnitude of impacts for those interventions identified in the screening that may result in negative environmental impacts;

(vi) recommend appropriate mitigation measures to minimize negative potential impacts, and predict and assess residual impacts; and,

(vii) describe the public consultation process undertaken.

As noted in Section 2.4 below a separate consolidated IEE, a separate consolidated summary IEE and a separate consolidated Environmental Management Plan (EMP) have also been prepared for the overall Project.

1.2. HUNAN FLOOD MANAGEMENT PROJECT - OVERVIEW

The proposed Project will support the HPG to reduce flood damage in mountainous areas by improving flood mitigation measures for the most affected municipalities and counties.

The overall goal of the proposed Project is to: - reduce flooding and flood hazards in the mountainous area of Hunan Province by improving flood management within a context of integrated river basin management.

The purpose of the proposed Project is to: - strengthen, improve and bring to a consistent standard the flood management measures in four tributaries of Dongting Lake in Hunan Province.

The development objective of the proposed Project is:

(i) to improve urban flood control and to counteract natural calamities in the mountainous areas of Hunan Province;

(ii) to protect life and property and improve safety for the people; and,

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(iii) to ensure social stability and advancement through reliable economic development.

The Project will invest in flood management in the Xiang, Zi, Yuan and Li River Basins, collectively termed the ‘Mountain Rivers’, which deliver runoff from the mountainous areas of Hunan to Dongting Lake. These Mountain Rivers generate short duration localized floods, characterized by a steady rise and fall of water levels in the river sections as a flood wave passes down the river. These elevated flood levels generally persist for no more than two or three days, except in the lower reaches where the period may extend to 5 days. Despite the mountainous conditions, tending to low hills in the middle catchment, the rivers generally have a shallow gradient through the heavily populated areas, with substantive floodplains within the otherwise narrow valleys which characterize the river systems. Consequently, the typical pattern of settlement adjacent to the rivers is narrow elongated development areas, with older high density residential, commercial and industrial areas in the flat lowlands. This tends to have constricted the natural floodplain characteristics for the river, and these areas are now subjected to short term but increasingly frequent flooding. The characteristic behavior of these Mountain Rivers means that the settled communities suffer from more frequent and often more extensive flood impacts, which causes loss of life and severe disruption to the livelihoods of affected peoples. By virtue of their location and dependence on agriculture, many are the poorest of the poor.

The proposed Project contains thirty-six (36) subprojects located in eight municipalities (, , , , Yongzhou, , Huaihua and Loudi); City which is the capital of Xiangxi ; five county-level cities; and twenty- two counties2. These cities and counties are all located in either the eastern, southern and western mountainous regions, or in the central region which generally consists of low hills.

The proposed Project also includes a non-structural component that will enhance non-structural flood management in Hunan, including providing training and technical assistance to strengthen data collections systems, flood forecasting, and flood emergency warning systems.

Table 1-1 summarizes the 36 subproject key features under the Structural Flood Control Component of the proposed Project.

1.3. XINHUA URBAN FLOOD CONTROL CORE SUBPROJECT

1.3.1. OVERVIEW

Xinhua City is located at the upstream end of the Zhexi Reservoir on the middle reach of the Zishui River, central Hunan. The Zishui River generally flows from east to west through Xinhua, but makes a large loop to the south to enclose East Xinhua (Chengdong) on three sides, with West Xinhua (Chengxi) on the left bank as it flows northwest. The middle reach of the Zishui catchment is characterized by a mixture of undulating hills and sharp relief interspersed with flat and flood prone floodplains adjacent to the rivers. Much of new Xinhua is built on the low lying river terraces formed by the river alluvium deposits, whereas the old city core is on the slightly higher ground within the Chengxi area. The terraces are flood prone resulting from a combination of local rainfall and poor drainage, high river stage during floods, and backwater impacts from the Zhexi dam 127 km downstream of Xinhua. The Chengxi area was provided with partial flood protection in 2001, but the standard of the completed works is not sufficient to provide a full 1 in 20 year level of protection.

2 The terms “county” and “municipality” are sometimes used interchangeably with the term “city” in the initial Chinese feasibility studies and in other Chinese Project-related documents. It should be understood that all subprojects are focused on specific and defined urban areas for which the generic term “city” is appropriate, regardless of whether this is referring to a prefecture-level, municipal-level or county-level city.

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TABLE 1-1: SUMMARY OF THE 36 SUBPROJECT KEY CHARACTERISTICS

No Name City Type River Earth Floodwall Culverts Pumping Basin Dikes Dikes (No.) Stations (Km) (Km) (No.) 8 Core Subproject to start in Year 0 (2005) 1 Yongzhou M X 21.50 23.37 16 6 2 Wugang C Z 5.47 10.76 14 4 3 Loudi M X 30.91 5.89 19 2 4 Leiyang C X 11.29 1.05 5 0 5 Chengxi C Y 0.00 0.73 3 1 6 Huaihua M Y 13.39 9.64 10 4 7 Xinhua C Z 12.25 0.00 4 2 8 Sangzhi C L 0.00 7.29 7 2 8 Core Subprojects - Sub Totals 94.81 58.73 78 21 28 Subprojects to start in Year 1 (2006) 9 Hengyang M X 39.21 18.30 88 31 10 Chenzhou M X 23.30 23.80 39 0 11 Shaoyong M Z 1.60 7.40 9 8 12 Jishou M Y 0.00 22.40 27 0 13 Zhuzhou C X 8.66 0.00 18 7 14 Youxian C X 10.90 1.40 15 4 15 Anhua C Z 3.30 10.55 4 0 16 Hengyang C X 14.60 0.34 6 4 17 Longhui C Z 4.50 3.60 5 3 18 Jiangyong C X 4.43 2.61 4 0 19 Xintian C X 11.70 7.52 3 3 20 Ningyuan C X 4.80 8.30 4 0 21 Zhongfang C Y 5.62 0.50 3 2 22 Xupu C Y 5.71 2.57 5 2 23 C X 4.07 13.10 17 0 24 Shuangfeng C X 4.40 5.41 12 2 25 Cili C L 11.99 5.70 5 1 26 Zhuzhou M X 24.50 8.50 7 14 27 Xiangtan M X 12.90 0.00 5 2 28 C X 9.70 5.40 10 3 29 Lilling C X 3.49 7.90 5 4 30 Shimen C L 12.95 0.00 7 2 31 C Z 11.10 0.54 7 4 32 Jianghua C X 2.87 0.74 3 3 33 Xinhuang C Y 0.00 6.35 4 3 34 C Z 5.40 1.69 9 3 35 Fenghuang C Y 0.00 5.15 0 0 36 Baojing C Y 1.30 3.65 6 0 28 Non-Core Subproject Sub-Totals 243.00 173.42 327 105 36 Subproject Totals 337.80 232.16 405 126

Rivers (Subprojects) – Xiangjiang (18), Zijiang (7), (8), and Lishui (3) City Type (Subprojects) – Municipal (9) or County (27)

Note: For flood management, all the cities depend on non-structural measures (data acquisition, flood forecasting, flood warning and flood response procedures), and therefore varying activities will be undertaken at each city to strengthen these non-structural activities, coordinated by the Provincial Water Resource Department.

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Some parts of the dike are up to 1 in 10 year level, but some more recent additions to the north of the City are only provide 1 in 5 year protection. Additionally, the quality of construction is poor, and piping failures are common during high river water levels.

The overall objective is to protect the flood prone areas on the alluvial terraced areas and the existing urban development in two protection areas (Chengxi and Chengdong). For the design period (to 2010) protection will be provided against a 1 in 20 year return period (P=5%) flood. To achieve this it is proposed that two dike segments be built – one on the left bank of Zishui to protect Chengxi (upgrading of 4.5 km of existing dike) and one on the right bank to protect the Chengdong area (7.750 km of new earth dike). Additionally, a total of 4 gated drainage culverts, 3 drainage culvert pipes, 1 open drainage channel and 2 pumping station will be built to provide drainage of the Chengdong and Chengxi areas.

The location of Xinhua Subproject and the overall layout and position of these structures is shown in Figure 1-1 and Figure 3-1.

1.3.2. SUBPROJECT PROPONENT

The Hunan Provincial Government (HPG) will be the Executing Agency (EA) for the Project. A provincial level Project Management Office (PPMO) has been established in the Provincial Water Resources Department (PWRD), with representatives from the Provincial Development and Reform Commission (PDRC) and the Provincial Finance Department (PFD). The PPMO will be responsible for overall project preparation and administration. The PPMO is an experienced and adequately staffed project office that has successfully processed and implemented two World Bank financed water resources and flood management projects and a Japan Bank for International Cooperation (JBIC) financed urban flood control project in the Dongting Lake area. A Project Leading Group (PLG), headed by a Vice Governor of Hunan Province and comprised of senior officials from PWRD, PDRC and PFD, will guide the PPMO and oversee project preparation and implementation.

At each subproject (municipality and county) a Local Leading Group (LLG) and a Local Project Management Office (PMO) have been established and are responsible for coordinating and administering the subproject in their jurisdiction. The LLG and PMO have a similar structure and composition as that of the PLG and PPMO. Subproject implementation will be undertaken by the corresponding project implementation units (PIUs) which are the existing local flood management agencies.

The responsibility for implementing the non-structural component of the Project was being clarified at the time of report preparation.

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FIGURE 1-1: CORE AND NON-CORE SUBPROJECT LOCATIONS, HUNAN FLOOD MANAGEMENT PROJECT

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2. ENVIRONMENTAL ASSESSMENT REQUIREMENTS AND REGULATORY FRAMEWORK

2.1. PRC ENVIRONMENTAL ASSESSMENT REQUIREMENTS

2.1.1. KEY LAWS, GUIDELINES AND PROCEDURES

The Environmental Impact Assessment Law of the PRC was passed on October 28, 2002 and became effective on September 1, 20033. The EIA Law demands obligatory environmental assessment studies for all construction projects. Key elements of the law in relation to the proposed Project are as follows:

- EIA refers to the analysis, projection and evaluation of potential environmental impacts caused by the implementation of a plan or a construction project. The assessment must propose measures to prevent or mitigate harmful environmental impacts, and recommend methods to carry out project impact monitoring. - There are three levels of EIA reporting:

• Category A projects are considered to have the potential for moderate to significant environmental impact, and a comprehensive assessment is required. Category A projects include land utilization and construction; development and utilization of regions, watershed areas and sea areas; and development of industry, agriculture, animal husbandry, forestry, energy resources, water resources, traffic, city construction, tourism and natural resources. The developer must hold a public hearing or seek comments and suggestions from experts and the public before submitting the EIA report for approval. Government approval or disapproval must be issued within 60 days.

• Category B projects have more moderate environmental impacts, and the law requires completion of an environmental impact form.

• Category C projects have minimal environmental impact projects, and the law requires completion of an environmental impact registration form for which government approval or disapproval is issued within 15 days. - China's State Environmental Protection Administration (SEPA) is authorized to handle the review and approval of environmental impact reports for construction projects on nuclear facilities, confidential works, construction projects straddling across more than one provincial-level region, projects that require examination and approval by the State Council or other ministerial level administrations, and projects that have a total investment over CNY 200 million. Local governments are responsible for the approval of all other projects. - The environmental protection administration is required to inspect the actual environmental impact after the project goes into operation, and as relevant, report on causes and liabilities for severe environmental pollution or ecological destruction.

3 Replaced the existing Environmental Protection Law (1992).

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The National Development Planning Commission (NDPC) or its provincial counterpart will not approve a project until the EIA is approved. Provincial or local Environmental Protection Bureaus (EPBs) are responsible for ensuring implementation of whatever environmental monitoring and management measures are specified in EIAs approved at any level. Generally, the administrative aspects of China’s newer environmental regulations, such as approvals and permits issued subsequent to EIAs, are enforced more stringently than older regulations.

The Implementing Agency is generally required to report at various stages of construction and operation, including an Environmental Monitoring and Supervision Report which should be submitted to the Provincial EPB and the Provincial Planning Commission. If funding is provided by international sources these reports are consolidated semi-annually or at completion of key stages and forwarded to the lending institution (e.g., ADB).

The Environmental Impact Assessment Law is supported by several Technical Guidelines for EIA, which provide recommendations and guidance on methodologies. Relevant guidelines include: - Technical Guideline for EIA of Hydroelectric and Hydraulic Engineering (on trial) (SDJ302-88); - Technical Guideline for EIA / Atmosphere Impact Assessment (HJ/T2.2-93); - Technical Guideline for EIA / Surface Water Impact Assessment (HJ/T2.3-93); - Technical Guideline for EIA / Noise Impact Assessment (2.4-1995); - Technical Guideline for EIA / Ecological Environment and Natural Resources (HJ/T 19- 1997); - Technical Regulations on Water and Soil Conservation of Development and Construction Projects (SL204-98); and, - Technical Guidelines for Environmental Impact Assessment (on trial) (HJ/T130-2003).

2.1.2. PROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER PRC REGULATIONS

As required under the Environmental Impact Assessment Law an overall Hunan Flood Management Project EIA Report is being prepared by the Environmental Science Institute of Hunan Province (ESIHP) under contract to the Hunan Hydro and Power Design Institute (HHPDI). The EIA is expected to be submitted to SEPA in April 2005. It is understood by the consultant that the EIA report will recommend that the Project be classified as Category C. Category C approval is expected to be received from SEPA in May 2005. It is as yet unclear whether a Category C environmental registration form will be required in addition to the EIA report that is being prepared.

Under the Environmental Impact Assessment Law subproject level EIA reports are not required.

2.2. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS

For any project processed with the participation of an International Funding Agency, in addition to the fulfillment of national requirements the proponent must also satisfy the requirements of the funding organization. As the proposed Subproject is being developed for financing through a loan from the ADB, it must follow the ADB environmental assessment guidelines and requirements, as detailed in the following key references:

(i) Environmental Policy of the Asian Development Bank (2003);

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(ii) Environmental Assessment Guidelines of the Asian Development Bank (2003); and,

(iii) Environmental Guidelines for Selected Agriculture and Natural Resources Development Projects, Asian Development Bank (1991).

ADB projects are classified as category A (with significant potential environmental impacts); category B (with less significant potential environmental impacts); and category C (unlikely to have significant environmental impacts). A project’s environment assessment category is determined by the category of its most environmentally sensitive component, including both direct and indirect impacts.

For category A projects a full EIA is required. For category B projects an initial environmental examination (IEE) is required, and if the IEE determines that the project has significant environmental impacts a full EIA is then required. If a full EIA is not required for a category B project, and the IEE concludes that the project will not have any adverse environmental impacts, then the environmental assessment is deemed complete. For category B projects in which a full EIA is not required but the project is still considered to be environmentally sensitive, the IEE must include an Environmental Management Plan (EMP) with a budget; a summary initial environmental examination (SIEE) must be submitted to the ADB Board 120 days prior to the Board consideration; and the SIEE must be posted on the ADB’s website and be made available to locally affected groups and NGOs upon request. No environmental assessment is required for category C projects although their environmental implications nevertheless need to be reviewed.

2.3. ADB ENVIRONMENTAL ASSESSMENT REQUIREMENTS UNDER A SECTOR MODALITY

Under a sector-like approach subproject activities are typically not developed to the feasibility stage during TA implementation. In these cases priority subprojects may be selected to act as models for the full development of the remaining subprojects during the loan project implementation stage.

2.4. PROJECT AND SUBPROJECT ENVIRONMENTAL ASSESSMENT PROCESS UNDER ADB REQUIREMENTS

2.4.1. ENVIRONMENTAL CATEGORIZATION

The Hunan Flood Management Project has been classified as category B, and has been deemed “environmentally sensitive” by the ADB Chief Compliance Officer (CCO).

2.4.2. PROJECT REVIEW PROCESS

The Project-level environmental review process includes the preparation of a consolidated (project-wide) IEE, a consolidated SIEE, and a consolidated EMP. Each has been reviewed and approved by both the ADB and the PPMO. As the project has been deemed environmentally sensitive by the CCO the EMP includes a budget; the SIEE must be submitted to the Board 120 days prior to the Board consideration; and, the SIEE must be posted on the ADB’s website and be made available to locally affected groups and NGOs upon request.

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Given that (i) the structural component is the major focus of the proposed Project, comprising over 90% of the estimated Project cost; (ii) the structural component is the only component that involves any physical works; and (iii) the non-structural component is limited to technical assistance and capacity building for data collections systems, flood forecasting, and flood emergency warning systems, no environmental analysis was required or undertaken for the non-structural component.

2.4.3. SUBPROJECT REVIEW PROCESS

As the Project is taking a sector-like approach eight priority core subprojects have been developed to feasibility level during the TA implementation (see Section 1.1, above), and an IEE has been prepared for each core subproject. In total the following reports have been prepared for each core subproject in order to advance them to the implementation stage:

- Feasibility Study Report (FSR);

- Resettlement Plan (RP);

- Initial Environmental Examination (IEE);

- Social/Poverty Impact Assessment (SPIA); and,

- Ethnic Minority Development Plan (EMDP) if required.

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3. DESCRIPTION OF THE XINHUA CORE SUBPROJECT

3.1. TYPE, RATIONALE AND PURPOSE

The Xinhua Subproject is a structural urban flood control project and will reduce flood impacts in flood prone areas of Xinhua City.

Xinhua is a rural city that is developing and industrializing rapidly. More rural people are migrating to the city for work and the overall population is growing and is expected to double over the next 20 years. Consequently the city is expanding, putting more pressure on available land for development. The Chengdong area has developed rapidly in the more accessible flood free areas, and continues to expand outward towards the river foreshore. These terraces are flood prone, and existing flood protection works are limited and substandard. Under the design 1 in 20 year flood level up to 5.72 km2 of the city area are at risk of flooding (4.60 km2 urban, 1.12 km2 rural), with the worst areas liable for up to 5 m of inundation. This would affect up to 137,000 people and result in direct financial losses estimated to be in the order of CNY 16.6 million. Given the importance of Xinhua as a rapidly expanding industrial and commercial centre within the new economic development of Hunan, there is a need to minimize these disruptions by installing flood protection.

The subproject aims to strengthen existing dikes for Chengxi and build a new dike and drainage facilities for the Chengdong area. The Chengxi area already has functional drainage works, but more work is needed on the dike to ameliorate seepage from the river into low lying flood prone areas. The project will prevent any flood occurring in the protected areas for up to a 1 in 20 year return period event (2010 design year), and provide drainage (waterlogging relief) for a 1 in 10 year, 24 hour rainfall in 24 hours. With this protection in place, the commerce and livelihood of the affected inhabitants will be more secure, and direct personal and broader city economic losses and physical damages will be reduced.

3.2. SUBPROJECT OVERVIEW

Flood protection will be provided by constructing dikes, gated drainage culverts, drainage channels, pumping stations, and through river course dredging and rehabilitation.

The Subproject will establish two flood protection zones:

(i) East City Area (Chengdong – 2.63 km2) – sitting within the broad loop of Zishui River that comes from the east, turns south, then sweeps west and finally north through the middle of the city, with hills on the eastern and northern boundary of the flood affected area [this area is predominantly low lying alluvial plain, where the most recent commercial and urban development has taken place]; and

(ii) West City Area (Chengxi - 3.09 km2) – to the west of the Zishui River, due west and across the river from the Chengdong area, a mixture of the old city centre on the higher ground and some more recent fringe urbanization that is moving into the flood prone

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areas [other than land along the river front which is already partly protected by an existing but low standard dike].

The main works consist of:

(i) Construction of 12.25 km of dikes along both sides of the Zishui River for two protection areas: - Chengxi (left bank west): 4.500 km of upgraded earth dike with a 9 m wide crest, protected by a concrete wave wall, from No. 1 Xinhua Bridge to Huashan; - Chengdong (right bank east): 7.750 km of new earth dike from Nongfeng Dock to Nanyuan.

(ii) Construction of 4 drainage culverts with a total of 6 sluice gates, of varying size.

(iii) Construction of 2 pumping stations: - Shangdu, Chengdong - 3 pumps and total 465 kw installed power; - Huashan, Chengxi – 4 pumps and total 1,000 kw installed power.

(iv) Construction of 3 drainage pipes, total 1.7 km, of varying diameter for three areas totaling 2.88 km2.

(v) Construction of 1 open channel collector drain, 1.3 km long, to drain a 0.8 km2 area.

(vi) Placement of grass sod revetment on dikes – total 193,415 m2;

(vii) Dredging and use or disposal of spoil (39,548 m3);

(viii) Surfacing of mudstone road – all types of dike, up to 6 m wide (79,075 m2); and,

(ix) Non-structural flood monitoring, forecasting, management, warning and emergency response measures.

The dikes are designed for a 1 in 20 year return period flood, while the drainage works are designed for a 1 in 10 year return period, 24 hour storm to be evacuated in 24 hours from the protection areas.

Table 3-1 provides a summary of the Subproject activities. Figure 3-1 provides the Subproject site layout.

3.3. LOCATION

Hunan is situated between 109° to 114° longitude east and 20° to 30° latitude north, in south central China. Xinhua County is located in the southeast side of the north section of the Xuefeng Mountain Chain in the center of Hunan Province. It is bordered by Lengshuijiang and Lianyuan to the east, Xinshao and Longhui to the south, Xupu to the west, and Anhua to the north. Xinhua County has a total area is 3,567 km2.

Xinhua City is located on the middle reach of the Zishui River, at the upstream end of the Zhexi reservoir. The Zishui River generally flows from east to west through Xinhua, but makes a large loop to the south to enclose East Xinhua (Chengdong) on three sides, with West Xinhua (Chengxi) on the left bank as it flows northwest. The middle reach of the Zishui catchment is characterized by a mixture of undulating hills and sharp relief interspersed with flat and flood prone floodplains adjacent to the rivers. Much of new Xinhua is built on the low lying river terraces formed by the river alluvium deposits, whereas the old city core is on the slightly higher

SOGREAH - July 2005 PAGE 12 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE) ground within the Chengxi area. Figure 3-2 provides an overview of the Xinhua City area landuse.

TABLE 3-1: SUMMARY OF THE XINHUA SUBPROJECT KEY CHARACTERISTICS

Subproject Key Characteristics Unit Value

Total Length of Dike km 12.25

Existing Dike to be Reinforced km 4.50 New Earth Dike km 7.75 New Pump Stations Stns / No. / kw 2 / 7 / 1,465 New Sluice Gated Culverts No. / Gates 4 / 6 New Drainage Channel No. / km 4 / 3.0 Dike Slope Concrete Revetment km 12.25 Dike Slope Grass Revetment km 12.25 Civil Works Structures Hardened Dike Crest Surfacing km 12.25 Rip Rap Bank Protection km 7.75 Earth and/or Rock Excavation m3 x 103 221.20 Dredging m3 x 103 39.55

Earth and/or Rock Fill m3 x 103 831.61 Sand and Gravel Bedding m3 x 103 24.36 Grouted Rubble m3 x 103 18.31 Plain and Reinforced Concrete m3 x 103 21.79 Reinforcing Steel Bar t 605.56 Metalwork and Hoists t 16.73 High Pressure Grouting m 2,100.00 Construction Quantities Concrete Block Revetment m3 x 103 23.86 Grass Slope Protection m2 x 103 193.42 Dike/Road Sealing m2 x 103 75.08

Land Acquisition mu 473.00 ha 31.53 House Demolition m2 x 103 5.27

Social / Other Building Demolition 2.94 Resettlement Population Resettled People 172

Xinhua City has an area of 30 km2 (20 km2 urban, 10 km2 rural) as of the year 2000, with an overall population of 130,000 (100,000 urban, 30,000 rural). By the year 2010 these numbers are projected to be 45 km2 area (37 km2 urban and 8 km2 rural) and 210,000 population (115,000 urban and 95,000 rural), and by 2020, 60 km2 (54 km2 urban and 6 km2 rural) and 300,000 (290,000 urban and 10,000 rural).

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FIGURE 3-1: XINHUA SUBPROJECT SITE LAYOUT

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FIGURE 3-2: XINHUA SUBPROJECT LANDUSE

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The overall Subproject Study Area (SSA) is defined as the flood protection zone, which has an area of approximately 5.72 km2. For the purposes of this environmental evaluation the Subproject Environmental Impact Area (SEIA) is defined as including:

- a zone approximately 100 m wide measured from the average perpendicular trend of both bank of the Zishui River, commencing 200 meters upstream of the start of dike construction and ending 200 meter downstream of terminus of dike construction; - a zone approximately 100 m wide measured from the average perpendicular trend of the route for the flood diversion channel; - a zone approximately 100 m wide measured from the average perpendicular trend of the drainage pipe.

The above zones will encompass the direct impact zones from most of the Subproject activities, including the creation or upgrading of dikes, the construction of the flood diversion works, and the construction of drainage and pumping works. In addition, the SEIA is also defined as including:

- the area within a 100 m radius of the edge of the borrow pits; - the area within a 100 m radius of the edge of the sites for spoil disposal; and - the areas within a 100 m radius of the edge of the sites where displaced persons will be resettled.

3.4. CONSIDERATION OF ALTERNATIVES

When considering the flood protection needs for Xinhua, there was limited scope for significant alternative measures due to the natural topography and existing city development. The most immediate need is to limit the opportunity for flood water from Zishui from entering the low lying city areas, and it was assessed that using dikes with gravity drainage outlets for landside stormwater drainage was the most immediately effective option. The choice of alternatives therefore came down to rationalizing the alignment and type of dikes to be adopted, to minimize dike length, land acquisition, resettlement and related costs. These were:

- Build earth dikes along the right bank of the Zishui River to avert regular flooding of low lying land in the Chengdong urban area, balancing the location and overall length of these dikes against the costs and impacts of land acquisition, resettlement and material quantities needed to provide the necessary safe protection works; - Upgrade the existing dike along the left bank of the Zishui River to both close and improve the protection level afforded to the Chengxi urban area, balancing the form of the upgrade against any additional costs and impacts for land acquisition, resettlement and material quantities needed to provide the necessary safe protection from Zishui River floods and backwater effects from the Zhexi reservoir; - Position and size culvert structures and one pumping station so as to provide effective drainage relief to the more severely affected areas, especially where stormwater drainage would accumulate behind the dikes, whilst minimizing overall structure size and requirements; and - Ensure the provided works would totally enclose and secure the protected areas and securely provide the expected design level protection for the people and the economic prosperity of the city.

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3.5. DETAILED DESCRIPTION

3.5.1. DIKES

The proposed dike works consists of 7.75 km of new dike to enclose the Chengdong protection area, and about 4.5 km of upgraded dike to enclose the Chengxi area. These dikes will all be earth embankment (12.25 km), but will include a concrete wave wall. The dikes will either follow the existing alignment or generally run along the natural ground adjacent to the Zishui, sufficient to provide a river water channel 420 m wide. The earth dikes will be faced with a concrete block layer over a sand/gravel bed from the low water level to the dike crest on the river side, and the landside slope will be grassed to stabilize the slope face. Mudstone will be used to provide a hard wearing surface for the top of the dike.

TABLE 3-2: DIKE CHARACTERISTICS

Protection Dike Section Chainage Length (km) Height (m) Structure Circle Nongfeng Dock- East 0+000- Chengdong 7.75 2.0-9.0 New Earth Dike Zhujialong 7+750 Zishui Bridge- West 0+000- Reinforced Earth Chengxi 4.5 Huashan 4+500 Dike Total 12.25

3.5.2. DRAINAGE WORKS

There are a total of 14 drainage areas located within the two flood protection zones. Five drainage pump stations and 6 gravity sluice gated culverts have already been constructed in the Chengxi area, so they are not included in the new works. The major requirements are for 1 new pump station each in Chengdong and Chenxi, and 4 sluice gated culverts, 3 drainage culverts and 1 drainage channel in Chengdong.

3.5.3. CULVERT GATE

Four drainage culverts with a total of 6 sluice gates, of varying size, will be constructed.

TABLE 3-3: GATES CHARACTERISTICS

Drain Drainage Design Size of Length of Protection Name of age Discharge Flood Type of Cross Chainage Culvert Circle gates Area (m3/s) Level Structure Section 2) Pipe (m) (km (m) (M) Concrete East3+295 Baishazhou 1.64 10.17 174.87 1×2.0×2.5 20.2 Box Culvert Concrete East5+240 Yueguangtan 1.36 8.43 174.70 1×1.8×2.2 19.6 Chengdong Box Culvert Concrete East6+510 Longwangchi 3.36 19.59 174.57 2×1.8×2.2 32.9 Box Culvert Concrete East7+120 Shangdu 3.9 26.90 174.50 2×2.0×2.5 34.1 Box Culvert

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FIGURE 3-3: TYPICAL DIKE CROSS-SECTION

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3.5.4. PUMPING STATIONS

Two pumping stations will be constructed, one at Shangdu in the Chengdong protection zone with 3 pumps and a total of 465 kw installed power, the other at Huashan in the Chengxi protection zone with 4 pumps and total of 1000 kw installed power.

TABLE 3-4: PUMPING STATION CHARACTERISTICS

Design Design Catchment Drainage Inner Outer Installed Protection Pumping Lift Head Chainage Area Discharge Water Water Capacity Zone Station (m) (km2) (m3/s) Level Level (kw) (m) (m) Chengdong Shangdu East7+120 3.90 7.23 169.50 172.81 3.80 3×155 West 6.0 12.2 168.0 Chengxi Huashan 172.4 5.06 4×250 4+200

3.5.5. DRAINAGE COLLECTOR CHANNEL

To mitigate the passage of drainage water through Chengdong area the Laorenchong area (0.8 km2) will be drained separately through a drainage collector channel that will carry catchment runoff from the east side of Chengdong to the southeast for discharge to the Zishui upstream of Xinhua. Additionally, the gravity sluice gated culverts for Chengdong will be supplemented by the installation of 3 piped drainage outfalls for Zhujialong, Shujiachong and Xiegongtan sub- catchments, with a total catchment area of 2.88 km2. These piped drains will divert drainage runoff directly to the Zishui River.

TABLE 3-5: CHARACTERISTICS OF OPEN CHANNEL DRAINAGE COLLECTOR CHANNEL

Drainage Diversion Length Bottom Crest Freeboar Collectio Discharg of Width of Width of Slope Inner Type of Name d n Area e Channel Channel Channel Gradient Slope Channel (m) (km2) (m3/s) (km) (m) (m) Laorenchon Concret 0.80 5.50 1.3 1.5 0.6 1/1000 1:1.1 0.5 g e

TABLE 3-6: CHARACTERISTICS OF PIPED DRAINAGE FOR 3 SUB-AREAS

Drainage Outlet Inlet Diversion Pipe Pipe Pipe Collectio Slope Invert Invert Name Discharge Length Diameter Thickness n Area Gradient Elevation Elevation (m3/s) (km) (m) (cm) (km2) (m) (m) Zhujialong 1.60 9.94 0.5 1.50 18 1/100 172.00 177.00 Shujiachon 0.50 3.63 0.6 0.90 15 1/100 172.50 178.50 g Xiegongtan 0.78 5.30 0.6 1.70 20 1/150 172.40 176.40

3.5.6. RIVER REHABILITATION AND DREDGING

The flow in many sections of the Zishui River has become restricted as a result of illegal deposition of waste materials, illegal buildings and increased sediment deposition from

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backwater conditions caused by the Zhexi Reservoir. The Water Law, River Channel Management Regulation and Flood Control Management Regulation state that all buildings which restrict the river flow should be demolished, except for bridges, diversion dams and docks required for city transportation, industrial production, public services, city facilities and environment protection. Therefore, in accordance with these laws and regulations, the following works will be undertaken: - demolition of buildings along the river channel, if not built in accordance with the related regulations; - dredging of shoals and sand/aggregate banks within the urban river sections; and - slope protection and bank stability enhancement.

TABLE 3-7: MAIN QUANTITIES, RIVER REHABILITATION

Item Unit Value Earth excavation m3 8280.0 Rock excavation m3 7910.0 Gravel excavation m3 10950.0 Riprap stone m3 6250.0 Grouted rubble m3 6142.5 Total m3 39532.5

3.5.7. BORROW PITS AND SPOIL PILES

Soil and rock will be required for the dike construction. Over 745,800 m3 of fill is required, with approximately 556,100 m3 coming from borrow pits. Four existing nearby borrow pits (Shizishan, Nongfeng, Baisha and Dimuyan) located from 3.5 to 4 km from the Subproject site will be utilized.

Rock will be sourced from the Qingshan Quarry located to 9 km to the west of the project area. The quarry has an estimated capacity of more than 0.5 million m3 rock. Sand and gravel will be sourced from several existing commercial quarries along both sides of the Zishui River.

Spoil will be disposed at four low lying spoil pits in Dimuyan (Chengxi protection zone), and Baisha, Shangdu, and Nongfeng (Chengdong protection zone), which will have a combined total area of 2.0 ha.

3.5.8. BUDGET

The total cost of the Xinhua County Urban Flood Control Subproject is estimated at $14.16 million (equivalent to CNY 117.28 million), comprising $5.46 million in foreign exchange (38.5%) and $8.7 million (CNY 72.07 million equivalent) in local currency costs, including local taxes of $0.72 million equivalent. Physical and price contingencies amount to $1.32 million and financial charges during implementation – comprising interest during implementation, front-end fees, and commitment charges – are estimated at $1.0 million. Subproject costs are summarized in Table 3-8 below.

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TABLE 3-8: COST ESTIMATES FOR XINHUA COUNTY URBAN FLOOD CONTROL SUBPROJECT ($ MILLION)

Foreign Local Total 1. Flood Control 3.71 7.18 10.89 2. Flood Management 0.24 0.02 0.26 3. Local Project Management 0.04 0.65 0.69 Total BASELINE COSTS 4.00 7.85 11.84 Physical Contingencies 0.40 0.74 1.14 Price Contingencies 0.07 0.11 0.18 Total PROJECT COSTS 4.46 8.7 13.17 Financial Charges During Implementation 1. - 1 Total Costs to be Financed 5.46 8.7 14.16

3.5.9. IMPLEMENTATION SCHEDULE

It is anticipated that the works will be implemented over a 48 month period, starting in August of Year 0 (2005). The proposed sequence is to do the dike and associated works for Chengxi from August 2005 to April 2007, and similarly for Chengdong from May 2007 to June 2009. Construction of the various structures will be spread over the four years, running in parallel with the respective dike construction, but may require longer for completion than most of the related dike works. Project Management training and capacity building will be required in the initial stages of loan effectiveness to ensure the project can proceed smoothly within the allocated period. The non-structural measures will include the provision of equipment to enhance the operation of the existing hydrological stations, and improve the overall flood monitoring and forecasting system.

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4. DESCRIPTION OF THE ENVIRONMENT

4.1 PHYSICAL RESOURCES

4.1.1 TOPOGRAPHY

Hunan Province is enclosed by mountains and hills to the east, south and west, and drains northwards to the Yangtze River. Mountains and hills occupy approximately 75% of the province, and the remaining low lying area (Dongting Lakes) is part of the Yangtze River floodplain. The majority of Hunan Province is formed by the mountainous natural catchments of the four major tributary rivers which flow into the Yangtze River. The center and northern parts of the province are generally low, forming a U-shaped basin with Dongting Lake at its center.

Xinhua County is located on the middle reach of the Zishui River, which is broad and meandering as it passes through the city. The urban area is divided into two parts (East and West) located on the 1st and 2nd level terraces at the southern end of the Zhexi Reservoir. The land is flat and open, formed from progressive erosion and accumulation. Most of the area has been covered by alluvium deposits with the general change of the Zishui River over the years. The topography is higher in the west and lower in the east, which belongs to the physiognomy of erosion and accumulation.

Xinhua County is located on the middle reach of the Zishui river, which is broad and meandering as it passes through the city. The urban area is divided into two parts (East and West) located on the 1st and 2nd level terraces at the southern end of the Zhexi Reservoir. The land is flat and open, formed from progressive erosion and accumulation. Most of the area has been covered by alluvium deposits.

The river valley is 300 m to 400 m in width. The surface width of the 1st level terraces is 250 to 600 m, at an elevation of between 170 to 175 m, 6 to 10m higher than the water surface during low flow periods. The surface width of the 2nd level terraces is 175 to 200 m, at an elevation of between 175 to 200 m.

4.1.2 GEOLOGY AND SEISMOLOGY

A geological survey was undertaken by the HHPDI and the detailed results are presented in the Xinhua Subproject Feasibility Study Report. The underlying bedrock that is exposed in some locations is sandstone while the alluvial surface deposits are from the Quaternary period. The lithology of the strata from top to bottom is broadly as follows:

– Cultivated soil: black humus soil, loose in texture, 0.4 to 0.6 m thick.

– Silty clay and silt: some dike sections mixed with muddy clay, plastic, 2 to 8 m thick.

– Silty fine sand and sandy gravel stratum: 1 to 8 m thick.

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– Sandstone: at the lower extreme of strong weathering strip, weak in lithology, on the lower level.

According to The Seismic Zoning Map of China with Earthquake Parameters (1992), the seismic intensity in the Subproject study area is classified as below VI degrees, indicating a suitable degree of seismic stability.

4.1.3 CLIMATE

Xinhua is located in a wet subtropical region, and the climate is predominantly hot and humid in the summer and cold and dry in the winter. In winter it is controlled by the Siberian cold air mass, while in the summer the area is influenced by hot and wet low latitude sea air masses, leading to high temperatures and humidity. In July and August wet weather occurs due to the influence of strong tropical winds which results in localized heavy storms.

Data from the Xinhua meteorological station shows a mean annual temperature of 16.8 °C, a minimum recorded temperature of -10.7 °C (1977), and an average temperature in January of 4.9 °C. July is the hottest month with an average temperature of 28.4 °C and an maximum recorded temperature of 40.1 °C (1971). The mean annual frost-free period is 281 days, the mean annual sunshine is 1,495.7 hours, the mean annual rainfall is 1,453.3 mm, the maximum annual rainfall is 2,021 mm (1954), and the mean annual maximum 24h rainstorm is 94 mm. The mean annual wind speed is 1.7 m/s, with a maximum wind speed of 20 m/s from the north northeast (1956). Table 4-1 presents a summary of climate data on measurement taken at the Xinhua weather station.

TABLE 4-1: CLIMATE CHARACTERISTICS

Parameter Unit Value Notes Average annual temperature oC 16.8 Highest temperature oC 40.1 1971 Lowest temperature oC -10.7 1977 Average annual precipitation mm 1453.3 Highest annual precipitation mm 2021.1 1954 Average annual frost-free period d 281 Average annual sunshine hours h 1495.7 Average annual total solar radiation kcal 101.72 Dominant yearly wind direction NNE Average annual wind speed m/s 1.7 Maximum wind speed m/s 20 1956

4.1.4 SURFACE WATER

4.1.4.1 HYDROLOGY AND FLOODING

Xinhua County city is located on the middle reach of the Zishui River. The Zishui flows into Xinhua from the east and passes through the city area in a sweeping “Z”, that divides the city into two areas - Chengdong (East City) and Chengxi (West City). In 1961 the Zhexi Reservoir was constructed 127 km downstream of Beita in northwest Xinhua City. The Zhexi is a large scale reservoir, Xinhua is now significantly affected by its backwater. The floods in Xinhua are mainly caused by heavy rains on the upper Zishui River catchment, and subsequent rise in the river water level due to backwater effects from the Zhexi reservoir. The Zhexi dam was raised in 1976 from a storage level of 167.5 m to 169.0 m (Wusong level). This is understood to be approximately equivalent to 165.5 m and 167 m under the Huanghai level datum (1985), and it

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is these levels that relate to flood levels for Xinhua. Floods are mainly caused by monsoon rains from April to July and typhoon rains through July and August. This can result in large discharge in the river over long periods (5 to 10 days). Because of the Zhexi reservoir backwater effects, the passage of large floods and the decline in water levels can sometimes take longer than would occur if the river was naturally free draining.

There are six hydrological and water level stations on the Zishui main stem upstream of Xinhua. The design for the Xinhua flood protection is based on the recorded and historical data from the Lengshuijiang Hydrological Station and the Xinhua Water Level Station. The Xinhua water level station, located within the city 1.2 km downstream of No. 1 Zishui Bridge, was established in 1942. The Lengshuijiang hydrological station, located about 20 km upstream from Xinhua, is a Class I National Hydrological Station and a controlling station for the main stem of the Zishui River (catchment area of 16,236 km2).

Xinhua is flooded frequently, and historical records from the water level station at Xinhua show that in the period 1942-2001 24 significant floods occurred. A notable flood occurred in July 1996 when the Zishui River level reached 176.16 m, 3.88 m higher than the existing Chengxi dike crest. The dike collapsed in six places, the entire dike length was damaged, and the city suffered large losses. In the 1990s there were three years (1994, 1996, 1998) in which the flood level exceeded 171.0 m (Huanghai (Yellow Sea) datum). The flood water level was respectively 171.03 m, 176.16 m and 171.15 m. In 1996, the water level at Xinhua station was much higher than in the other years because the flood discharge was in excess of a 1 in 20 year return event, and because the return frequency at Zhexi was estimated to be in excess of a 1 in 150 year return event and reservoir operation was compromised.

Although the flood season for Zishui River is between April and September, most of the large scale floods occur between May and July. Statistical analysis of data from the Xinhua water level station shows that the large floods through May to July account for 79% of all floods recorded, with 22.8%, 35.1% and 21.1% of the floods occurring in May, June and July respectively.

4.1.4.2 WATER QUALITY

There is a municipal water intake several hundred meters upstream of the No. 2 bridge in the southern portion of Zishui River, and the river reach from chainage 0+500 to chainage 4+800 (as measured on the right bank) is designated as a Class I water source protection zone. Water quality in Class I water source protection zones is evaluated against Class II water standards specified in the Quality Standards for Surface Water Environment (GB3838-2002) (see Table 4- 2).

The Xinhua County water quality monitoring station monitors a total of 18 parameters three times per year: wet season (May), normal season (September), and dry season (January). The monitoring data from the sampling station located at the municipal water intake is presented in Table 4-3. A review of the results indicates that the Zishui River is moderately polluted. According to 2004 water quality monitoring data Volatilized Hydroxybenzene, NH3-N, and Hg exceeded the standards by 40.7%, 33.3% and 70.3% respectively. Results for each of the other monitoring parameters, including pH, dissolved oxygen, CODCr, BOD5, and coliform, were lower than the relevant standard limits. Therefore, the water quality of the Xinhua section of the Zishui River marginally meets the water source protection zone requirements. Key pollution sources likely include domestic and industrial wastewater from both Xinhua City and from Lengshuijiang City, located immediately upstream of Xinhua.

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TABLE 4-2: BASIC PARAMETERS, ENVIRONMENTAL QUALITY STANDARDS FOR SURFACE WATER (GB3838-2002), NATIONAL STANDARDS OF THE PEOPLE'S REPUBLIC OF CHINA

No. Parameters (mg/L) Water Quality Class I II III IV V 1 Temperature(°C) The maximum average weekly water temperature variations caused by human activities should be ≤1 increase and ≤2 decrease 2 PH 6-9 3 Dissolved Oxygen ≥ 90% (or 75) 6 5 3 2 4 Permanganate Index ≤ 2 4 6 10 15

5 CODM ≤ 15 15 20 30 40

6 BOD5 ≤ 3 3 4 6 10

7 NH4—N ≤ 015 05 10 15 20 8 Total P ≤ 002 01 02 03 04 9 Total N ≤ 02 05 10 15 20 10 Cu ≤ 001 10 10 10 10 11 Zn ≤ 005 10 10 20 20 - 12 F ≤ 10 10 10 15 1 5 13 Se ≤ 001 001 001 002 002 14 As ≤ 005 005 005 01 01 15 Hg ≤ 0 00005 0 00005 0 0001 0 001 0 001 16 Cd ≤ 0 001 0 005 0 005 0 005 001 17 Pb ≤ 001 001 005 005 01 6+ 18 Cr ≤ 001 005 005 005 01 - 19 CN ≤ 0 005 005 02 02 02 20 Volatilized Hydroxybenzene ≤ 0 002 0 002 0 005 001 01 21 Oil ≤ 005 005 005 05 10 22 Anionic Surfactant ≤ 02 02 02 03 03 2- 23 S ≤ 005 01 02 05 10 24 Faecal coliform bacteria 200 2000 10000 20000 40000 Source: Unofficial translation of Chinese original, Environmental Quality Standards for Surface Water (GB3838-2002), National Standards of the People's Republic of China.

TABLE 4-3: WATER QUALITY MONITORING RESULTS, 2004

Parameter Standard Maximum Minimum % Standard Concentration concentration Concentration Exceeded Range PH 6-8 8.01 7.02 0 DO ≥5 8.51 2.4 0 CODCr ≤2 3.46 1.47 0 BOD5 ≤3 3.57 0.13 0 NH4-N ≤0.15 0.25 0.057 33.3 Volatilized ≤0.002 0.01 0.001 40.7 Hydroxybenzene Coliform 1700 1700 0 Temperature 29 9 0 Cyanide ≤0.005 0.002 0.002 0 As ≤0.05 0.017 0.003 0 Hg ≤0.00005 0.00028 0.00003 70.3 6+ Cr ≤0.01 0.002 0.002 0

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TP ≤0.02 0.042 0.018 0

4.1.5 AIR QUALITY

The airshed encompassing the SSA is zoned as Class II in the PRC Regional Ambient Air Quality Function Zoning (HJ14-1996) and air quality is therefore evaluated against the Class II standards specified in Quality Standards for Environmental Atmosphere (GB3095-1996). The Loudi municipal environmental monitoring station monitors air quality at three locations in Xinhua County: Bureau of Agriculture, Bureau of Stock Raising and Xinhua Weather Station. Monitoring of SO2, NO2, TSP and PM10 is undertaken in January, April, July and October for a 5 day period. Air quality monitoring data for Xinhua from 2004 is summarized in Table 4-4.

TABLE 4-4: AIR QUALITY MONITORING, XINHUA COUNTY, 2004 (UNIT MG/NM3)

Station Parameter Bureau of Agriculture Bureau of Stock Raising Weather Bureau Number of valid data 80 80 80 Annual average 0.052 0.045 0.033 5 day average in January 0.054 0.063 0.029 SO2 5 day average in April 0.029 0.035 0.017 5 day average in July 0.049 0.050 0.042 5 day average in Oct. 0.075 0.032 0.044 Standard 0.15 0.15 0.15 Number of valid data 80 80 80 Annual average 0.048 0.043 0.025 5 day average in January 0.036 0.058 0.026 NO2 5 day average in April 0.067 0.036 0.040 5 day average in July 0.019 0.032 0.010 5 day average in Oct. 0.069 0.045 0.025 Standard 0.08 0.08 0.08 Number of valid data 80 80 80 Annual average 0.224 0.199 0.109 5 day average in January 0.38 0.24 0.10 TSP 5 day average in April 0.24 0.211 0.067 5 day average in July 0.077 0.185 0.037 5 day average in Oct. 0.20 0.16 0.23 Standard 0.3 0.3 0.3

The monitoring data indicates that air quality of Xinhua Country is fair. All items are meet the Class II standard specified in the Quality Standards for Environmental Atmosphere (GB3095- 1996) except TSP monitored in January, probably caused by poor road conditions which lead to high rates of dust production.

4.2 ECOLOGICAL RESOURCES

4.2.1 VEGETATION

The Xinhua City area is part of the subtropical evergreen/broad-leaf forest zone. In the higher elevation hills and mountains there are fairly extensive tracts of fir, bamboo and pine forest,

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while lower elevations tend to be denuded and give way to barren lands or degraded tracts of mixed shrubs and grasses.

There is relatively little natural vegetation in the SSA and the SEIA. Vegetation along the rural portions of the Xinhua primarily consists of small crop plots, abandoned fields and “waste” lands that are covered with mixed grasses and small shrubs. In the more urban areas houses and commercial buildings and roads have completely displaced all natural vegetation. Vegetation in the urban area includes some commercially planted trees as well as trees planted or maintained for landscaping purposes.

There are no records or reports of rare or endangered flora or historic trees in the SSA or SEIA.

4.2.2 TERRESTRIAL AND AQUATIC WILDLIFE

Most of the project area is urban or semi-urban, and as there is very little natural habitat remaining in the SEIA there are also few remaining wild faunal species, though there are reports of wildlife (the information is not more specific than that) in the hills in the more remote surrounding region. Terrestrial animals in the SEIA primarily consist of amphibians, reptiles, rodents and birds, as well as farm animals. There are no records or reports of protected or endangered terrestrial or aquatic species in the study area.

4.2.3 FISHERIES

Fish in the Xinhua area reportedly include a variety of carp species such as grass carp (Ctenopharyngoden idella), silver carp (Hypophthalmichthys molitrix), crucian carp, (Cyprinus carpio), black carp (Mylopharyngodon piceus), etc. There are no reports of any rare migratory or resident fish species. There are reportedly little or no fishing activities in the Zishui River within or close to the SEIA.

4.2.4 PROTECTED AREAS AND NATURE RESERVE

There are no protected areas, nature reserves or natural parks in the SEIA.

4.3 SOCIOECONOMIC CONDITIONS

4.3.1 DEMOGRAPHIC PROFILE

In Xinhua County there were 331,300 households and 1.29 million people in 2003 with an average family size of 3.87 persons and a gender ratio of 48% female and 52% male. The urban population was 133,400 or 10.4% of the total population, which is about one third of the Hunan Provincial average. Table 4-5 provides a summary of basic demographic data for Xinhua County in relation to Hunan Province.

Within the Subproject SSA in 2003 there were 17,067 households and 56,981 persons, including 28,669 males and 28,322 females. A total of 36,407 persons or 63.9% were urban residents and 20,574 persons or 36.1% were rural residents. There were only 14 ethnic minority persons, accounting for 0.02% of the population.

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TABLE 4-5: DEMOGRAPHIC PROFILE OF XINHUA AND HUNAN PROVINCE

Parameter Xinhua Hunan Total Households 331,300 19,295,900 Total Population 1,288,300 66,628,000 Male Population 670,600 34,533,300 Female Population 617,700 32,094,700 Urban Population 133,400 22,320,400 Rural Population 1,154,900 44,307,600 Urbanization Rate 10.4% 33.50% Total Laborers (Rural) 706,000 29,143,800 Male Laborers (Rural) 373,000 15,790,500 Female Laborers (Rural) 333,000 13,353,350 Minority Population n.a. 4,823,800 Note: The minority figure was for 2002. Source: Huaihua Statistical Yearbooks (2003)

4.3.2 ECONOMIC PROFILE

The total gross industrial output in Xinhua in 2003 was CNY 480 million and total agricultural gross output value was CNY 1.1 billion. The GDP in Xinhua was CNY 3.17 billion, averaging CNY 2,667 per capita, about 38% of the Hunan Provincial average (CNY 6,963). In terms of composition of GDP the ratios of primary, secondary and tertiary sections are 35%, 21%, and 44% respectively.

Per capita income in rural areas of Xinhua County was CNY 1,268, about half of that in Hunan Province. Urban per capita income was CNY 5,171, less than 27% of that in Hunan Province.

There are 556,700 ha of farmland in Xinhua County, including 316,700 ha paddy and 240,000 ha of dry cropland. Based on a rural population of 1.15 million per capita farmland is 0.72 mu, about 45% less than the provincial average in 2003 (1.3 mu).

The gross output of the agricultural sector was CNY 1.7 billion in 2003. Of this animal husbandry accounted for 58.9%, followed by planting activities with 33.2%. The main agricultural products included grain, vegetables, and citrus. The main animal products included pork, beef, poultry, etc.

The total gross industrial output value in Xinhua in 2003 was CNY 572.54 million, with 15% in light industry and 85% in heavy industry. The main industrial products in Xinhua are coal, cement, and energy. Table 4-6 provides an economic profile of Xinhua District contrasted with Hunan Province.

4.3.3 POVERTY PROFILE

Xinhua became a nationally designated poverty county in 2002. There are 230 poverty villages in Xinhua, most of which are located in mountainous areas or in areas that have been inundated by reservoirs. There are a total of 249,400 persons under the rural poverty line (CNY 900 per capita income) or the urban poverty line (CNY 125 per person per month), 19.3% of the total population. Of these 15,400 are urban poor, equivalent to 11.5% of the total urban population, and 243,000 are rural poor, equivalent to 20.3% of the total rural population in Xinhua County.

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TABLE 4-6: ECONOMIC PROFILE OF XINHUA AND HUNAN PROVINCE (2002)

Economic Indicators Xinhua Hunan Total GDP (Billion CNY) 3.17 4639 Per Capita GDP (CNY) 2,667 6963 GDP in Agriculture Sector (Billion CNY) 1.10 88.65 Percent from Agricultural Sector 34.7 19.1 GDP in Industrial Sector (Billion CNY) 0.67 179.42 Percent from Industrial Sector 21.1 38.7 GDP in Tertiary Sector (Billion CNY) 1.40 195.81 Percent from Tertiary Sector 44.2 42.2 Annual Growth Rate of GDP (%) 7.6 9.6 Per capita farmland (mu) (1 h a = 15 mu) 0.56 (0.32) 3.89 (2.94) Per capita income in rural area (CNY) 0.72 1.30 Per capita income in urban area (CNY) 1,268 2,472 Source: Hunan Provincial Statistical Yearbook 2004 and field survey.

There are no poverty villages in the SSA. However, among the SSA total population of 56,981 there are 3,456 urban poor, and 2,719 rural poor persons, accounting for 11.5% of the urban population and 13.2% of the rural population respectively. Table 4-7 provides a summary of poverty conditions in the district and in the Hunan Province.

TABLE 4-7: POVERTY PROFILE, XINHUA AND HUNAN PROVINCE (2003)

Item Xinhua Hunan Total Population 1,288,300 66,628,000 Urban Population 133,500 22,320,400 Rural Population 1,154,800 44,307,600 Poverty Population 249,400 2,440,000. Percent of Poverty Population 19.3 3.7 Urban Poverty Population 15,400 1,340,000 Percent of Urban Poverty 11.5 6.0. Rural Poverty Population 234,000 1,100,000 Percent of Rural Poverty 20.3 2.5 Poverty villages 230 5,497 Sources: Hunan Statistical Yearbook 2004 and Xinhua County Poverty Alleviation Office.

4.3.4 MINORITY PROFILE

There are 436 ethnic minority persons in Xinhua County, accounting for only 0.04% of the total population. Most of them came to Xinhua through marriage or job allocation. There are no concentrated ethnic minority communities in Xinhua County.

There are only 14 ethnic minority persons in the SSA, accounting for 0.002% of the total population. These minority persons are entitled to the same rights to education and employment as Han people and there are no obvious differences in their economic conditions and income levels.

4.3.5 ARCHAEOLOGY, CULTURAL AND RECREATIONAL PROFILE

There is one special cultural feature with the SEIA, the 278 year old Bei Tower, located on the left bank dike near chainage 3+000. There are no specially other designated archaeology, cultural or recreational sites with the SEIA.

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5 SCREENING OF POTENTIAL IMPACTS AND MITIGATION

5.1 APPROACH TO ENVIRONMENTAL SCREENING

This chapter assesses potential environmental impacts associated with the proposed Subproject and recommends appropriate mitigation measures where necessary. Potential environmental impacts are analyzed by examining the impact of each stage of the Subproject implementation on the natural and human environment. Each component identified as having the potential for negative impacts is assessed in detail, including a review of potential impacts, recommendations for appropriate mitigation measures, recommendations for additional environmental analysis (if required), and analysis of residual impacts, if any.

The environmental screening is based on:

– a review of Government of China (GOC) publications, scientific literature, and previous technical and environmental impact studies;

– a review of available information on the Subproject design;

– consultation with local subproject Project Management Offices (PMOs), Environmental Protection Bureaus (EPBs) and other agencies;

– relevant guidelines and policies of the Asian Development Bank (see Section 2.2);

– field visits and surveys.

The result of the screening of potential environmental impacts is summarized in Table 5-1 and presented in detail in Sections 5.2 to 5.4.

5.2 SITING

5.2.1 LAND ACQUISITION AND RESETTLEMENT

5.2.1.1 POTENTIAL IMPACT

The Subproject will permanently acquire about 31.56 ha of land. Approximately 93.8% of this is farmland, which will affect a total of 622 households and 1,897 persons. On average each affected person will lose only 0.016 ha of farmland. The remaining 6.2% of the land is rural residential land and industrial land. Approximately 11.6 ha of land will be occupied temporarily during the construction phase, some of which may also be farmland.

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TABLE 5-1: SUMMARY SCREENING OF POTENTIAL IMPACTS ON NATURAL AND SOCIAL ENVIRONMENT, XINHUA CITY SUBPROJECT

Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources Environmental Issues Associated with Subproject Siting Land Acquisition Risk of serious (-) - All recommendations for compensation and - PMO 7.1 and Resettlement social inequities if - 31.56 ha of resettlement presented in the Xinhua SPIA - Local EPB (FSP cost) compensation is permanent land and RP should be fully implemented. inadequate or acquisition - A Xinhua Subproject Facilities Siting Plan inappropriate. including 29.6 (FSP) to be developed which appropriately ha farmland locates temporary worker camps, - 32 households construction facilities, soil disposal sites, etc, demolished to minimize social and environmental involving 172 impacts people. - Xinhua EPB to review and approve the FSP. - 11.6 ha of temporary land acquisition. Encroachment into Risk of reducing (-) - All recommendations for compensation and - PMO - Refer to FSP Productive income generation - 29.6 ha of resettlement presented in the Xinhua SPIA - Local EPB cost, above. Agrosystems of affected families. permanent and RP should be fully implemented. farmland - Xinhua EPB to review and approve the FSP acquisition, so as to minimize temporary farmland affecting a total acquisition for worker camps, construction of 622 facilities, etc. households and 1,897 persons. Encroachment into Loss of ecological No sensitive - As part of the development of the FSP an - PMO - Refer to FSP Precious Ecological resources such as resources or ecological safeguard survey should be - Local EPB cost, above. Areas wetlands and rare rare and undertaken to identify any potential sensitive - HHPDI and endangered endangered terrestrial or aquatic ecological resources. flora and fauna. flora and fauna - Xinhua EPB to review and approve the FSP identified in so as to ensure no ecological resources are the SEIA. impacted.

4 All costs associated with compensation and resettlement are presented in the Resettlement Plans (RPs). 5 The full Environmental Management Plan (EMP) budget is presented in Table 7-1. Some cost categories included in Table 7-1, such as administration, training, site inspections, monitoring, and government revegatation fee are not included in this table.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources Encroachment on Loss of historical or (-) - Public Affairs and Culture Relics Bureau to - PMO - Refer to FSP Historical or Cultural cultural features. - There is one review the FSP so as to ensure that no other - Local EPB cost, above Features historic feature historical or cultural features have the - Local Public (Bei Tower) potential to be impacted. Affairs and within the SEIA - As part of the FSP approval process the Culture Relics that needs to be Xinhua EPB should consult the Public Affairs Bureau protected. and Culture Relics Bureau to ensure that - Contractor there are no other historical or cultural areas that will be affected. - Any historical or cultural feature within the SEIA should be designated a no entry-zone on the Xinhua FSP. - Any historical or cultural feature within 25 m of a construction site or 5 m of a project transportation route should be demarcated with flagging to enforce the no-entry designation. In addition, if any of these features are designated by the Public Affairs and Culture Relics Bureau as being sensitive to construction related impacts then they should be protected with fencing or other suitable measures. Impairment of Economic loss (-) - The Public Roads and Transportation - PMO - Cost of Transportation - Construction of Administration Bureau to be consulted to - Local Public trans- (access to fields or dikes and the ensure access routes are not unduly affected Roads and portation settlement) Laorenchong and that sufficient alternatives are provided. Transportation alternatives collector Administration included in drainage Bureau capital channel may - Contractor budget cause localized and short-term traffic disruptions. Loss of Mineral Economic loss Apparently no Resources mineral resources affected.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources Destruction of Economic loss (-) - Any affected public facilities will be replaced - PMO - Cost of Public Facilities - 2.5 km of farm or repaired, and compensation should be - Contractor replacement access road, 6.5 provided to any affected persons or of public km of high enterprises. facilities voltage line, 6.7 included in km of low capital voltage line, and budget 2.5 km of tele- communication line to be affected. Environmental Issues Associated with Subproject Construction Hydrology Local hydrology Dike changes construction should not affect the hydrology of the Zishui River Water Quality Soil erosion may (-) A site construction EMP will be developed. - PMO 30.52 reduce water quality - Erosion from The EMP will require that: - Contractor and impact aquatic construction - All construction areas should have a siltation ecology sites and source fence protecting the Zishui River from rock and soil erosion and siltation along the entire length piles may of the construction site. reduce water - In addition, in areas classified as water quality in Zishui source protection zones silt traps should be River and other installed at natural drainage entry points in local water construction sites. bodies. - All other construction sites within 50 m of water bodies should have siltation fences on the downstream drainage side to protect against erosion and siltation. If these sites are near water source protection zones silt traps should also be installed on any drainage points. - Rock and dirt piles should be covered when not in use, and siltation fences and traps should be installed on the downstream drainage side if near water bodies. - Exposed dikes and ground surfaces should be protected with appropriate engineered

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources and vegetative protection measures, including grass, cement, etc. Construction waste (-) The EMP will require that: - Contractor 6.0 water disposal may - Approximately - Wastewater from concrete washing and - PMO reduce water quality 45,650 m3 of curing should only be directed to the local and impact aquatic construction sewer system or local drainage channels ecology wastewater from near the construction site and not directly to washing and the Zishui River. curing concrete - Water from vehicle and equipment washing works will be should be directed to the local sewer system produced which or local drainage channels near the may have a construction site and not directly to the Zishui short-term River. Oils should be removed as much as impact on the practical. water quality in - Receiving drainage ditches should be the Zishui River. equipped with a bioswale and siltation traps prior to their discharge to any major receiving water body. Dredging may (-) The EMP will require that: - Contractor 0.2 impact water quality - Dredging of an - The amount of dredging should be - PMO and affect municipal estimated minimized. water treatment 39,548 m3 will - No dredging should take place during fish plant result in migratory or spawning seasons. localized and - No dredging for construction materials (as short-term water opposed to increasing flow capacity) quality upstream of the water intake will be allowed. reductions. - Dredging done upstream of the municipal water treatment plant intake should be carefully scheduled in conjunction with the plant management so as to not impact the drinking water supply. Water intake should be stopped prior to the commencement of dredging, and no water intake will be allowed until any sediment plume has been fully dispersed and the SS levels return to within 5% of background levels. - Water quality during dredging should be monitored 500 m downstream of the site and activities should be halted if SS levels exceed relevant standards. - Public notice of any interruption to the water supply service should be provided a

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources minimum of 2 weeks in advance. - Compensation to the water treatment plant for lost water withdrawal days may be required. Inappropriate (-) The EMP will require that: - Contractor 6.0 sewage disposal - Approximately - Temporary toilets will be provided at a rate of - Xinhua Health could impact water 35,640 m3 1 for every twenty workers. and Sanitation quality domestic - All domestic wastewater from the workers Department wastewater will camps should be collected and discharged to be generated. the municipal sewerage system. - On-site sewage will be collected as necessary by the Xinhua Health and Sanitation Company and treated or discharged to the municipal sewerage system. - Regular cleaning and disinfection of the toilets should be undertaken so as to avoid breeding of flies and mosquitoes. Solid Waste Inappropriate spoil (-) The EMP will require that: - Contractor 39.36 disposal may reduce - Up to 175,000 - Maximum use should be made of on site - PMO overall m3 spoil will be excavated materials so as to minimize spoil environmental generated. production. quality - The disposal sites should be identified in the FSP, and should not be in or near any sensitive areas. - Spoil disposal should only be allowed in designated sites. - Erosion protection measures such as silt fences and covering the spoil mounds should be implemented. - Upon completion of construction the spoil deposits should be re-vegetated with appropriate native grasses and shrubs. Inappropriate (-) . The EMP will require that: - Contractor construction rubble - Construction - Maximum use should be made of on - PMO disposal may reduce rubble will be construction rubble as fill where/ if overall generated with appropriate. environmental building - Rubble should only be stored on sites quality demolition and temporarily, and should be land filled if space dike is available, or disposed of in a designated rehabilitation. construction waste disposal site as approved by the Xinhua EPB.

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Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources Inappropriate (-) The EMP will require that: - Contractor dredgate disposal - Dredging of an - The dredgate disposal sites should be - PMO may reduce overall estimated identified in the FSP, and should not be in or environmental 39,548 m3 of near any sensitive areas. quality bottom - Disposal should only be allowed in sediments, sand designated sites. shoals, - Erosion protection measures such as silt collapsed bank fences and covering the spoil mounds should materials, etc. be implemented. - Upon completion of construction the spoil deposits should be vegetated with appropriate native grasses and shrubs. Inappropriate (-) The EMP will require that: - Contractor 4.0 domestic solid - Up to 297,000 - Waste containers will be provided at a rate of - Xinhua Health waste may reduce kg of domestic 1 for every twenty workers. and Sanitation overall waste will be - Domestic solid waste produced by Department environmental produced by construction workers must be deposited into quality construction waste containers. workers. - Collection and disposal of domestic solid waste will be undertaken by the Xinhua Health and Sanitation Company. Waste disposal will only be allowed at the Xinhua deposit site. Air Quality Dust may reduce air (-) - Transportation roads within the construction - Contractor 6.0 quality - Dust from site should be hardened. transportation - Transportation roads within the construction machinery will site and the surrounding urban area should create dust be regularly sprayed with water so as to within 30 m of control dust. roads. - Truck loads should be covered with an - Dust may be awning to prevent dust emissions. generated by - The cement transport and mixing process cement should be carried out under closed transport and conditions. Cement should be transported by mixing. closed tankers, and should be conveyed to - Soil and spoil the concrete mixer by a closed cement piles may pump. generate dust. - Soil piles should be covered unless being - Dike actively used. Piles should be sprayed with construction in water when not covered. Spoil and dredgate urban areas piles should also be covered unless being may create actively used, and should be sprayed with

SOGREAH - July 2005 PAGE 36 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources localized dust water when not covered. problems. - For construction of dikes close to dense residential areas fiber texture protection fences should be installed on the urban side of the dike to reduce air and noise pollution. Vehicle emissions (-) - All construction machinery and transportation - Contractor 2.0 may reduce air - Vehicle and vehicles should be equipped with exhaust quality heavy emission systems that meet relevant PRC machinery emission standards. emissions will - Vehicle emission systems should be have localized inspected at constriction outset and then on a impact. bi-annual basis. Noise Pollution Transportation and (-) Noise from Transport Vehicles - Contractor 2.0 heavy machinery - Potential for - vehicle overloading is prohibited; operation may affect noise impacts - horn operation in urban areas is prohibited; local peoples and where - all vehicles should have functioning mufflers workers. construction is that meet relevant standards. taking place in Dike construction in densely Noise from Heavy Machinery urban areas may populated urban - all construction machinery should be in full affect local residents areas. compliance with Standards of Environmental Noise in Urban Area (GB3096-93); - low noise construction methods should be adopted wherever possible; - regular maintenance of machinery should be undertaken to reduce operational noises. - construction personnel working in high noise level situations should be provided with protective equipment and should not work continuously in such situations for more than 6 hours per day.

Dike Construction: - construction of dikes in urban areas is prohibited between from 10:00 pm to 6:00 am daily; - in areas that are particularly sensitive to noise (e.g. within 200 m of schools and hospitals), structural measures such as sound separation walls should be implemented. Compensation for high noise levels may also be required.

SOGREAH - July 2005 PAGE 37 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources Flora Threat to or loss of (-) - As part of the development of the FSP an - PMO - Refer to FSP important flora. - 31.56 ha of ecological safeguard survey should be - Local EPB cost, above land to be undertaken to identify any potential sensitive permanently terrestrial or aquatic ecological resources. occupied and - Xinhua EPB to review and approve the FSP 11.6 ha to be so as to ensure no valuable ecological temporarily resources are impacted. occupied do not include Compensation vegetation should be planted at - Contractor 3.96 any rare or all suitable locations. Specifically: endangered - native grasses should be planted along dikes flora, primary slopes in order to provide slope protection; forest or - all borrow pit areas should be fully re- special vegetated with appropriate native species of habitat. grass, shrubs or trees in order to replicate local natural vegetation cover; - all spoil disposal sites should be fully re- vegetated with grasses, shrubs or trees in order to replicate local natural vegetation cover. - Trees and vegetation to be planted in areas targeted for resettlement Fauna Threat to or loss of (-) - As part of the development of the FSP an - PMO - Refer to FSP important fauna. - 31.56 ha land ecological safeguard survey should be - Local EPB cost, above to be undertaken to identify any potential sensitive permanently terrestrial or aquatic ecological resources. occupied - Xinhua EPB to review and approve the FSP does not so as to ensure no ecological resources are include any impacted. rare or endangered fauna. Aquatic Life Threat to or loss of (-) The EMP will require that: - PMO - Refer to FSP important aquatic Dredging will - The amount of dredging is to be kept to an - Local EPB cost, above flora and fauna. have localized absolute minimum. impacts, but - No dredging should take place during fish areas are migratory or spawning seasons. degraded habitat and do not support any rare or endangered aquatic flora or

SOGREAH - July 2005 PAGE 38 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources fauna. Public Health and Potential for disease (-) - A Health and Safety plan will be developed - PMO 5.0 Safety Protection at worker camps if Worker camp will that will specify the Health and Safety - Contractor sanitation is poor. generate: obligations of the contractor. - 35,640 m3 - Any worker who develops an infectious domestic disease should receive adequate medical wastewater. care, and should be quarantined during the - 297,000 kg of infectious period. domestic waste - Any disease out break shall be reported to the relevant health authorities immediately. All instructions issued by the health authorities to deal with the outbreak shall be immediately implemented. - Workers must be provided with protective gear as required by the PRC Labor Law (1994) and relevant Hunan provincial regulations. - The maximum working shift is 8 hours per day. - In high noise conditions a maximum of 6 hours per day only is permitted. - Best practice on and off site safety practices to be implemented, including limiting vehicle speeds, fencing unsafe sites, etc. - In addition, see the requirements noted above for domestic waste and sewage. Environmental Issues Associated with Subproject Operation Hydrology Modifications to - The dikes will (+) hydrology and have no - Reduction in flooding. significant flooding in effect on the Xinhua water levels protection zones of Zishui River

SOGREAH - July 2005 PAGE 39 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Activities/ Potential Impacts Significance of Impact Recommended Mitigation Measures Responsible Estimated Threatened No Significant Direction (+ or -) / Description of Magnitude Agency Budget Environmental and Impact Low Medium High (104CNY) 4 5 Social Resources Water Quality Reduction in water (+) quality. - Improved flood protection will reduce ecological damage and water pollution from flood events Flora and Fauna Impacts on No negative (+) important flora and impacts on - Flood protection fauna. flora and will reduce fauna. damage to flora and fauna within the protection zone. Air Quality Air quality reduction (-) - Maintain roads adequately to control dust - PMO - Cost - Slight increase levels. incurred in dust beyond emissions from project dike roads. duration Traffic Changes to traffic (+) patterns. - Improved flood protection will reduce flood related traffic disruptions. - Dike roads will improve road and traffic safety conditions. Public Safety (+) - Improved flood protection will enhance public safety.

SOGREAH - July 2005 PAGE 40 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

In addition, a total of 8,212 m2 of buildings will be demolished, including 5,272 m2 of residential houses and 2,940 m2 of non-residential structures. The demolition will relocate 32 households and 172 persons and affect 4 enterprises and 82 employees.

5.2.1.2 RECOMMENDED MITIGATION MEASURES

The Xinhua Subproject SPIA and Resettlement Plan (RP) have been prepared in accordance with the standards and requirements of the PRC Land Administration Law6 (1998) and the associated Hunan Provincial Implementation Decree (2000), as well as the ADB’s Policy on Involuntary Resettlement. All recommendations for compensation and resettlement presented in the SPIA and RP should be fully implemented. If done appropriately the relocation will provide an opportunity to improve current housing condition for the affected persons. Affected rural households will be moved a short distance to another site within their original villages.

A Xinhua Subproject Facilities Siting Plan (FSP) should be developed which appropriately locates temporary worker camps, construction facilities, etc, so as to minimize social and environmental impacts. Emphasis should be placed on siting these facilities in areas that have minimal existing settlements and productive systems. The FSP should be submitted to the Xinhua EPB for approval. If the plan indicates facilities are sited inappropriately and may result in excessive social impacts then the plan should be modified until Xinhua EPB approval is obtained.

5.2.1.3 RESIDUAL IMPACT

The extent of resettlement for the Xinhua subproject is modest. Implementation of the recommendations in the SPIA and the RP, and appropriate siting of the facilities should ensure that the living standards of the relatively small number of affected persons are maintained and/or improved.

5.2.2 AGRICULTURE PRODUCTION

5.2.2.1 POTENTIAL IMPACT

Project permanent farmland acquisition is 29.6 ha. The temporary land acquisition may also include some farmland. Although the amount of farmland being acquired is small there may be some decrease in income for the affected farmers.

5.2.2.2 RECOMMENDED MITIGATION MEASURES

All recommendations for compensation and resettlement presented in the Xinhua SPIA and RP should be fully implemented.

The FSP should emphasize the appropriate siting of worker camps, construction facilities, etc, so as to minimize temporary farmland acquisition. The FSP should be submitted to the Xinhua EPB for approval. If the plan indicates facilities are sited inappropriately and may result in unnecessary temporary farmland loss then the plan should be modified until Xinhua EPB approval is obtained.

6 Stipulates the regulations for land compensation, resettlement subsidies, crop compensation, house compensation and other measures to carry out resettlement.

SOGREAH - July 2005 PAGE 41 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

5.2.2.3 RESIDUAL IMPACT

No significant residual impact is predicted.

5.2.3 ECOLOGICAL RESOURCES

5.2.3.1 POTENTIAL IMPACT

There are no precious ecological resources, sensitive areas or rare flora and fauna identified in the SEIA. There will be some small scale impacts on resident fauna such as of amphibians, reptiles, rodents and birds, and on resident flora, but it will be limited and is not considered significant.

5.2.3.2 RECOMMENDED MITIGATION MEASURES

Although no precious ecological resources, sensitive areas or rare flora and fauna have been identified to date, the development of the FSP should include an ecological safeguard survey of all areas were facilities will be sited, including the borrow pit areas and the waste soil disposal areas. Facilities should not be sited within 50 m of any areas of natural wetland, rare and endangered flora and fauna or other sensitive ecosystem that may be identified (none have been to date).

The FSP should be submitted to the Xinhua EPB for approval. If the plan indicates facilities are sited inappropriately and may result in impacts on any identified precious ecological resources then the plan should be modified until Xinhua EPB approval is obtained.

5.2.3.3 RESIDUAL IMPACT

No significant residual impact is predicted.

5.2.4 HISTORICAL AND CULTURAL VALUES

5.2.4.1 POTENTIAL IMPACT

There is one special cultural feature with the SEIA, the 278 year old Bei Tower, located on the left bank dike near chainage 3+000.

5.2.4.2 RECOMMENDED MITIGATION MEASURES

As part of the FSP approval process the Xinhua EPB should consult the Public Affairs and Culture Relics Bureau to ensure that no historical or cultural areas will be affected.

Any historical or cultural feature within the SEIA should be designated a no entry-zone on the Xinhua FSP. Any historical or cultural feature within 25 m of a construction site or 5 m of a project transportation route should be demarcated with flagging to enforce the no-entry designation. In addition, if any of these features are designated by the Public Affairs and Culture Relics Bureau as being sensitive to construction related impacts then they should be protected with fencing or other suitable measures.

SOGREAH - July 2005 PAGE 42 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

5.2.4.3 RESIDUAL IMPACT

No significant residual impact is predicted.

5.2.5 TRANSPORTATION

5.2.5.1 POTENTIAL IMPACT

The building of the dike may cause some localized and short-term traffic disruptions. Construction of the piped section of the Laorenchong collector drainage channel will also disrupt traffic.

5.2.5.2 RECOMMENDED MITIGATION MEASURES

The Public Roads and Transportation Administration Bureau should be consulted to ensure that access routes are not unduly affected and that if necessary alternative routes are provided that are sufficient to meet the needs of the affected persons.

5.2.5.3 RESIDUAL IMPACT

The transportation negative impacts will be minimal and short-term. No significant residual impact is anticipated.

5.2.6 MINERAL RESOURCES

5.2.6.1 POTENTIAL IMPACT

The Subproject will not cause the loss of mineral resources. The temporary land acquisition in the borrow pits and spoil area will have no significant effect on the exploitation of any identified or potential mineral resources.

5.2.7 PUBLIC FACILITIES

5.2.7.1 POTENTIAL IMPACT

The building of the dike project may affect 2.5 km of farm access road, 6.5 km of high voltage line, 6.7 km of low voltage line, and 2.5 km of telecommunication line.

5.2.7.2 RECOMMENDED MITIGATION MEASURES

As part of the implementation of the civil works any affected public facilities will be replaced or repaired. In addition appropriate compensation should be provided to affected persons or enterprises.

5.2.7.3 RESIDUAL IMPACT

No significant residual impact is predicted.

SOGREAH - July 2005 PAGE 43 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

5.3 CONSTRUCTION

5.3.1 HYDROLOGY

5.3.1.1 POTENTIAL IMPACT

The construction of the 12.25 km of dikes and associated works along the urban portions of both banks of the Zishui River will not involve any significant in-channel activities and will not cause any significant impact on the Zishui hydrology.

Dredging activities may have some very localized short-term impacts to hydrology, but overall will lead to increased flow capacity.

The construction of the drainage channels will not involve any Zishui River in channel activities and will not significantly affect the hydrology of the river.

5.3.2 WATER QUALITY

5.3.2.1 POTENTIAL IMPACT

Surface erosion from construction activities along the Zishui River may lead to a modest reduction in the quality of the river water quality and of any affected local water bodies. Potential construction sites where erosion may occur include the dike, the overflow dam site, the gated dam site, the flood diversion channel, the borrow pits, and the spoil and dredgate disposal sites. However, erosion to a large extent can be mitigated, and given the existing high levels of erosion and sediment in the watershed (the potential erosion coefficient in the area is 3300t/km2) it will only have a modest impact.

Washing and curing of concrete and construction of culvert sluices will generate wastewater at a rate of approximately 1 m3 wastewater per m3 of concrete produced. At that rate the Subproject construction will generate approximately 46,650 m3 of wastewater, which typically has a SS concentration of 300 to 500 mg/l and a pH value of 11 to 12. As the discharge of this wastewater will be over a wide area the discharge load from each individual construction site will be relatively low. The wastewater will be discharged into the ditches close to the construction site that will not directly impact on the river water quality.

Dredging of a total of 39,548 m3 of bottom sediments, sand shoals, collapsed bank materials, and domestic and other solid wastes and detritus will disturb the bottom sediments and will significantly increase the sediment content in the water column for short periods. The impact will be localized and short-term, and the highest degree of impact is expected within a zone 500m downstream of the dredging sites. In these locations for short periods of time the maximum concentrations of SS may exceed the relevant standards. This is particularly important for any dredging that may take place upstream of the municipal water intake.

Wastewater from construction personnel mainly consists of domestic sewage and gray water, with an estimated loading rate of 120 l/person/d or roughly equivalent to 35,640 m3. The wastewater will be directed to the city sewerage system which discharges to the Zishui River, and is not expected to have a significant incremental impact on water quality.

SOGREAH - July 2005 PAGE 44 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

5.3.2.2 RECOMMENDED MITIGATION MEASURES

A Xinhua Subproject construction EMP will be developed which will specify best-practice construction phase water quality protection measures as follows:

Soil Erosion Control - All dike construction areas should have a siltation fence protecting the Zishui from erosion and siltation along the entire length of the construction site. These fences will also protect the rivers against construction rubble and garbage. - In construction areas near water source protection zones silt traps should be installed at natural drainage entry points in construction sites. This will primarily involve the flood diversion channel outlet area. - All other construction sites within 50 m of water bodies should have siltation fences on the downstream drainage side to protect against erosion and siltation. - Rock and dirt piles should be covered when not in use, and siltation fences and traps should be installed on the downstream drainage side if near water bodies. - Exposed dikes and ground surfaces should be protected with appropriate engineered and vegetative protection measures, including grass, cement, rip rap, etc.

Dredging Control - The amount of dredging is to be minimized. - No dredging should take place during fish migratory or spawning seasons. No dredging for construction materials (as opposed to increasing flow capacity) upstream of the water intake will be allowed. - Dredging done upstream of the municipal water treatment plant intake should be carefully scheduled in conjunction with the plant management so as to not impact the drinking water supply. Water intake should be stopped prior to the commencement of dredging, and no water intake will be allowed until any sediment plume has been fully dispersed and the SS levels return to within 5% of background levels. - Water quality during dredging should be monitored 500 m downstream of the site and activities should be halted if SS levels exceed relevant standards. - Public notice of any interruption to the water supply service should be provided a minimum of 2 weeks in advance. - Compensation to the water treatment plant for lost water withdrawal days may be required.

Construction Wastewater Control - Wastewater from concrete washing and curing should only be directed to the local sewer system or local drainage channels near the construction site and not directly to the Zishui River. - Water from vehicle and equipment washing should be directed to the local sewer system or local drainage channels near the construction site and not directly to the Zishui River. Oils should be removed first as much as practical. - Receiving drainage ditches should be equipped with a bioswale and siltation traps prior to their discharge to any major receiving water body.

Sewage - Temporary toilets will be provided at a rate of 1 for every twenty workers. - All domestic wastewater from the workers camps should be discharged to the municipal sewerage system. - On-site sewage will be collected as necessary by the Xinhua Health and Sanitation Company and treated or discharged to the municipal sewerage system. - Regular cleaning and disinfection of the toilets should be undertaken so as to avoid breeding of flies and mosquitoes.

SOGREAH - July 2005 PAGE 45 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Safety – Best practice on and off site safety practices to be implemented, including limiting vehicle speeds, fencing unsafe sites, etc.

5.3.2.3 RESIDUAL IMPACT

With the implementation of appropriate mitigations measures the impact on water quality will be limited.

5.3.3 SOLID WASTE

5.3.3.1 POTENTIAL IMPACT

Solid wastes that will be generated by the Subproject during the construction phase include spoils from the earthworks, construction wastes, and domestic solid wastes produced by the workers:

- The project may generate over up to 175,000m3 of earth, gravel and rock spoil. - An as yet undefined amount of construction wastes and rubble will be generated. - Up to 297,000 kg of domestic solid waste will be generated during the construction period (based on a per capita waste production of 1.0 kg). This will be produced over a large area, and if not collected and disposed of appropriately will result in a reduction in overall environmental quality.

5.3.3.2 RECOMMENDED MITIGATION MEASURES

The EMP will specify waste management procedures as follows:

Spoils From Earthworks - Maximum use should be made of on site excavated materials so as to minimize spoil production - The disposal sites should be identified in the FSP, and should not be in or near any sensitive areas. - Spoil disposal should only be allowed in designated sites. - Erosion protection measures such as silt fences and covering the spoil mounds should be implemented. - Upon completion of construction the spoil deposits should be re-vegetated with appropriate native grasses and shrubs.

Construction Wastes and Rubble - Maximum use should be made of construction rubble as fill where/ if appropriate. - Rubble should only be stored on sites temporarily, and should be land filled if space is available, or disposed of in a designated construction waste disposal site as approved by the Xinhua EPB.

Dredgate - The dredgate disposal sites should be identified in the FSP, and should not be in or near any sensitive areas. - Disposal should only be allowed in designated sites. - Erosion protection measures such as silt fences and covering the spoil mounds should be implemented. - Upon completion of construction the spoil deposits should be vegetated with appropriate native grasses and shrubs.

SOGREAH - July 2005 PAGE 46 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Domestic Waste - Waste containers will be provided in certain spots at a rate of 1 for every twenty workers. - Domestic solid waste produced by construction workers must be deposited into waste containers. - Collection and disposal of domestic solid waste will be undertaken by the Xinhua Health and Sanitation Company. Waste disposal will only be allowed at the Xinhua domestic solid waste deposit site.

5.3.3.3 RESIDUAL IMPACT

No significant residual impact is predicted.

5.3.4 AIR QUALITY

5.3.4.1 POTENTIAL IMPACT

The primary atmospheric pollutants generated during construction are dust and particulate matter produced during vehicle transport, cement mixing, and wind-generated soil erosion; and emissions from transport vehicles and heavy machinery.

Dust from construction vehicles arises from both erosion of the road surface and loss of soil from vehicle loads. Dust levels are generally highest within 30 m of either side of the road, and with increased distance the concentration decreases gradually towards background levels. Construction will primarily be undertaken in the fall and winter when the atmosphere and roads are relatively dry, conditions that are conducive to dust generation. Dust will also arise from wind borne erosion of soil piles and spoil piles.

The main pollutants in vehicle and heavy machinery emissions include NO2, CO, and SO2. Emission levels will be low when compared to the total vehicle emissions in the area.

5.3.4.2 RECOMMENDED MITIGATION MEASURES

The transportation roads within the construction site should be hardened, and the transportation roads within the construction site and the surrounding urban area should be regularly sprayed with water so as to control dust. Truck loads should be covered with an awning to prevent dust emissions.

The cement transport and mixing process should be carried out under closed conditions. Cement should be transported by closed tankers, and should be conveyed to the concrete mixer by a closed cement pump.

Soil piles should be covered unless being actively used. Piles should be sprayed with water when not covered. Spoil piles should also be covered unless being actively used, and should be sprayed with water when not covered.

For construction of dikes close to dense residential areas fiber texture protection fences should be installed on the urban side of the dike to reduce air and noise pollution.

All construction machinery and transportation vehicles should be equipped with exhaust emission systems that meet relevant PRC emission standards. Vehicle emission systems should be inspected at construction outset and then on a bi-annual basis.

SOGREAH - July 2005 PAGE 47 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

5.3.4.3 RESIDUAL IMPACT

Few significant residual impacts are identified after implementation of the measures.

5.3.5 NOISE

5.3.5.1 POTENTIAL IMPACT

Noise will be generated during the construction phase from machinery (excavators, bulldozers, loaders and concrete mixers), construction activities, and transportation vehicles, and the Class II Standard (the continuous equivalent sound level in A scale shall not exceed 60 dB in the daytime and 50 dB in the night time) as specified in The National Standards for Environmental Noises in Urban Areas (GB 3096-93) could be exceeded which will negatively impact schools and residential areas close to the construction sites.

5.3.5.2 RECOMMENDED MITIGATION MEASURES

Noise from Transport Vehicles - vehicle overloading is prohibited; - horn operation in urban areas is prohibited; and - all vehicles should have functioning mufflers that meet relevant standards.

Noise from Heavy Machinery - all construction machinery should be in full compliance with the PRC Standards of Environmental Noise of Urban Areas (GB3096-93); - low noise construction methods should be adopted wherever possible; - regular maintenance of machinery should be undertaken to reduce operational noises. - construction personnel working in high noise level situations should be provided with protective equipment and should not work continuously in such situations for more than 6 hours per day.

Dike Construction: - construction of dikes in urban areas is prohibited between from 10:00 pm to 6:00 am daily; - in areas that are particularly sensitive to noise (e.g. within 200 m of schools and hospitals), structural measures such as sound separation walls should be implemented. Compensation for high noise levels may also be required.

5.3.5.3 RESIDUAL IMPACT

With the implementation of the mitigation measures the residual impacts are localized and relatively short term.

5.3.6 FLORA

5.3.6.1 POTENTIAL IMPACT

Approximately 31.56 ha of land will be permanently acquired of which 29.6 ha is farmland. There are no primary forests or reports of rare or endangered flora in these areas, and the permanent

SOGREAH - July 2005 PAGE 48 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Approximately 11.6 ha of land will be occupied temporarily during the construction phase. There are no primary forests or reports of rare or endangered flora in these areas. The temporary land occupation will last no longer than the construction period (48 months). As the Subproject area has high rainfall, a good climate and comparatively good soil quality that is favorable for vegetation growth it is anticipated that re-vegetation of spoil areas will not be difficult. Based on experience with similar water resources projects, supported recovery of vegetation on temporarily occupied land normally takes three to five years. Overall, the impact of temporary land occupation on flora is low, localized and medium term in duration.

5.3.6.2 RECOMMENDED MITIGATION MEASURES

As noted previously an FSP will be developed and submitted to the Xinhua EPB for approval. If the plan indicates facilities are sited inappropriately and may result in impacts on any identified precious ecological resources then the plan should be modified until Xinhua EPB approval is obtained.

Excavated materials should be used as much as possible as fill in the construction in order to reduce the quantities of spoil and the size of the spoil deposition sites. Spoil should only be disposed at sites designated in the FSR.

Compensation vegetation should be planted at all suitable locations. Specifically: - native grasses should be planted along dikes slopes in order to provide slope protection; - all borrow pit areas should be fully re-vegetated with appropriate native species of grass, shrubs or trees in order to replicate local natural vegetation cover; - all spoil disposal sites should be fully re-vegetated with grasses, shrubs or trees in order to replicate local natural vegetation cover; - trees and vegetation to be planted in areas targeted for resettlement.

5.3.6.3 RESIDUAL IMPACT

With the implementation of the mitigation measures the residual impacts from permanent land occupation are small, localized and long-term, and residual impacts from temporary land occupation are small, localized and relatively short term.

5.3.7 FAUNA

5.3.7.1 POTENTIAL IMPACT

As noted above the Subproject will permanently occupy 31.56 ha of land and temporarily occupy 11.6 ha. These areas are within an urbanized or semi-urbanized landscape, and do not contain significant areas of animal habitat or any rare or endangered fauna. The only impact will be on a limited area of habitat and feeding grounds for reptiles and rodents.

5.3.7.2 RECOMMENDED MITIGATION MEASURES

As noted previously an FSP will be developed and submitted to the Xinhua EPB for approval. If the plan indicates facilities are sited inappropriately and may result in impacts on any identified precious ecological resources then the plan should be modified until Xinhua EPB approval is obtained.

Vegetation on land that is temporarily occupied (e.g. borrow pits, spoil disposal sites, etc) will be replanted, replacing the habitat that is lost.

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5.3.7.3 RESIDUAL IMPACT

With the implementation of the mitigation measures and given the limited faunal value of the landscape the residual impacts from permanent land occupation are small and localized.

With the implementation of the mitigation measures and given the limited faunal value of the landscape the residual impacts from temporary land occupation are small and relatively short term.

5.3.8 AQUATIC LIFE

5.3.8.1 POTENTIAL IMPACT

The relevant reaches of the Zishui River contain little moderate or good quality aquatic habitat, and there are no reports of economically important fishing activities or rare and endangered aquatic life. If the project erosion and pollution control measure are implemented properly there will be little or no impacts on aquatic life in the Zishui from the construction of the dikes and associated works.

Dredging in the Zishui will have an impact on the benthic biota in the vicinity. It is understood that dredging activities are already ongoing, that these areas are not considered to be high quality aquatic habitat, and that there are no reports of any rare or endangered aquatic flora and fauna in the vicinity of the sites. The dredging will thus have a localized and moderate impact on aquatic life.

5.3.9 PUBLIC SAFETY

5.3.9.1 POTENTIAL IMPACT

The establishment of the worker camps poses public health safety risks through infectious disease propagation if sanitation (sewage and solid waste management) is not appropriate. For example, as noted previously, a total of 297,000 kg of domestic solid waste will be generated during the construction period. This will be produced over a large area, and if not collected and disposed of appropriately will result in a reduction in overall environmental quality.

5.3.9.2 RECOMMENDED MITIGATION MEASURES

A Health and Safety plan will be developed that will specify the Health and Safety obligations of the contractor.

Health of Workers - Any worker who develops an infectious disease should receive adequate medical care, and should be quarantined during the infectious period. - Any disease out break shall be reported to the relevant health authorities immediately. All instructions issued by the health authorities to deal with the outbreak shall be immediately implemented. - Workers must be provided with protective gear as required by the PRC Labor Law (1994) and relevant Hunan provincial regulations. - The maximum working shift is 8 hours per day. - In high noise conditions a maximum of 6 hours per day only is permitted.

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Domestic Rubbish: - Domestic solid waste produced by construction workers must be disposed into waste containers. - Waste containers should be provided at a rate of 1 for every twenty workers. - Collection and disposal of domestic solid waste will be undertaken by the Xinhua Health and Sanitation Company. Waste disposal will only be allowed at the Xinhua landfill site.

Sewage - Temporary toilets will be provided at a rate of 1 for every twenty workers. - Sewage will be collected as necessary by the Xinhua Health and Sanitation Company and treated or discharged to the municipal sewerage system. - Regular cleaning and disinfection should be done so as to avoid breeding of flies and mosquitoes.

5.3.9.3 RESIDUAL IMPACT

With the implementation of appropriate mitigations measures the negative public safety impacts will be minimal. The positive health and safety impacts of the flood protection provided by the Subproject will be significant and long-term.

5.4 OPERATION

5.4.1 HYDROLOGY

5.4.1.1 POTENTIAL IMPACT

An analysis was undertaken of the water surface profile through Huaihua with and without the new dikes and other civil works (Table 5-2). The analysis shows that with the inclusion of dikes to prevent the city from being flooded with a 1 in 20 year return period event the actual change in the water surface profile is very small (maximum 0.10 m). The main reason for such a small change is because the Zishui River section at Xinhua is wide and the dikes will be set approximately 420 m apart. Although without dikes the flood would spread into the city flood plain, the volume of discharge through the city area is small when compared against the majority of discharge that remains in the river channel. Therefore, the dike operation will not have a significant impact upon flood discharge or water surface profile levels. However, operation of the dykes and other civil works will lead to a significant reduction in flooding in the Subproject flood protection zones.

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TABLE 5-2: WATER SURFACE PROFILE AT XINHUA FOR VARIOUS FLOOD FREQUENCIES (WITHOUT/WITH PROJECT)

Flood Water Levels for Specified Cumulative Return Frequency (m) Section Distance (Km) Without Project With Project 2% 5% 10% 2% 5% 10% Huashan 0.00 175.36 174.06 172.72 175.40 174.08 172.74

Beita 1.90 175.53 174.17 172.86 175.62 174.24 172.89

Sanqiao 2.92 175.62 174.30 172.97 175.73 174.36 173.02 Water Level 4.19 175.75 174.41 173.12 175.83 174.46 173.15 Station No. 1 Bridge 5.03 175.80 174.49 173.27 175.88 174.56 173.32

Liangku 5.69 175.84 174.53 173.33 175.94 174.63 173.40

No. 2 Bridge 6.365 175.90 174.62 173.44 175.99 174.69 173.50 Water Supply 6.83 175.93 174.64 173.50 176.00 174.72 173.55 Plant Zhujiashan 10.19 176.22 174.98 173.78 176.29 175.05 173.82 Nongfeng 11.67 176.37 175.12 173.94 176.43 175.17 173.95 Wharf

5.4.2 WATER QUALITY

5.4.2.1 POTENTIAL IMPACT

Overall operation of the Subproject will not produce any pollutants and will not bring about any negative impact on the quality of the urban waters. Further, implementation of the Subproject will improve the flood control standards and drainage capacity of Huaihua, which will reduce ecological damages and water pollution that occurs during urban flood events.

5.4.3 FLORA AND FAUNA

Operation of the Subproject will not negatively impact flora or fauna. Re-vegetation of temporary sites impacted during the construction phase will take three to five years, so will extend in to the operation phase, but these are not new impacts and have been addressed previously.

Implementation of the Subproject will protect the urban ecological environment, shielding flora and fauna within the protection zone from flood associated damages.

5.4.4 AIR QUALITY

5.4.4.1 POTENTIAL IMPACT

As roads will be constructed alongside the dikes, there may be an increase in dust pollution.

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5.4.4.2 RECOMMENDED MITIGATION MEASURES

The roads should be well maintained so as to reduce dust levels.

5.4.5 TRAFFIC

The Subproject will improve the flood control standard of the city, and provide a positive effect for the security of roads within the flood protection zones. Furthermore, construction of new roads along the dikes will ease the traffic on the city roads and make the city roads safer.

5.4.6 PUBLIC SAFETY

5.4.6.1 POTENTIAL IMPACT

Flood protection provided by the Subproject will have a significant and long term positive impact on the health and safety of Xinhua’s citizens by reducing flooding and associated pollution and diseases that can occur during floods.

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6 PUBLIC CONSULTATION

6.1 BENEFICIARY IDENTIFICATION

The major beneficiaries of the proposed Xinhua Flood Control Subproject will include urban residents, rural village residents, enterprises, government institutions, and businesses. There is an estimated 56,981 people in the flood protection zone who will directly benefit.

6.2 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ACTIVITIES

Table 6-1 summarizes the public consultation activities that have been undertaken.

During the social surveys small group discussions were held among groups of individuals in select communities. Based on their experience individuals identified a range of benefits to be brought by the Subproject, summarized in Table 6-2. A range of potential negative impacts to be brought by the proposed Subproject were also identified. Of these land acquisition, demolition of houses and relocation of people were considered the major negative impacts of the Subproject. However, as most participants did not have a clear idea about the Subproject and its related potential land acquisition and resettlement impact, they were unable to express their concerns with regard to potential negative impacts. It is recommended that during next stage of Subproject preparation more meaningful participation and disclosure should be carried out in order to improve basic understanding of the Subproject and address concerns raised by the Subproject affected people.

Overall, all focus groups, including both urban and rural populations, expressed positive attitudes towards the proposed Subproject. Of the 52 individuals interviewed no one expressed opposition to the Subproject.

Additional information on the public consultation process is presented in the Social and Poverty Assessment for the Xinhua Subproject.

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TABLE 6-1: PUBLIC CONSULTATION AND PARTICIPATION ACTIVITIES

Agencies Purpose(s) Date Main Issues Discussed No. People Consulted 14 household 38 Identify poor and non-poor Nov. 23 - - Role of the proposed Project in Poverty interviews in Ziyuan households and their basic social 25, 2004 reduction and Shangdu economic conditions, income - Poverty Reduction Policies Villages sources, and expenditure structure as - Existing Poverty reduction project and its well as their attitudes towards the impacts proposed project - Comments and suggestions to the proposed Project to maximize its Poverty reduction impact 5 focus group 41 Introducing progress and alignment of Nov. 26 - - Length and wide of the proposed dikes discussions in Ziyuan the proposed Project. Exploring 30 - Frequency of floods and damage caused and Shandu villages, socioeconomic factors at the village - Impacts of the proposed subproject They include 2 level. Generating comments and - Land saving and compensation women’s groups, 2 suggestions on the proposed project - Location of resettlement men’s groups, and 1 and local community improvement - Compensation issues mixed group. priorities. Exploring measures to - Income source and their implication in maximize the positive impact of the relation to proposed Project Project and minimize the negative - Comments and suggestions to maximize the impacts. positive impact and minimize the negative impacts - Priority needs including the proposed project villages and 9 Introducing the alignment of proposed Nov. 26, - Existing measures and mechanism of anti- residential subproject, consultation the village 2004 and floods community leaders regard the impact (including Feb. 2 - Impacts of the proposed subproject leadership interviews positive and negative) of the Project. 2005 - Land acquisition and its compensation Generate comments and suggestions - Dike improvement priorities from village and on the proposed Project urban residential community leaders’ perspective - Poverty and its causes in the communities - Existing urban poverty reduction programs - Income source and it’s implication relation to proposed Project - Comments and suggestions to maximize the positive impact and minimize the negative impacts - Priority needs include dike development Business people 4 Introducing proposed subproject Nov. 29 to - Housing demolish and its compensation rate interview Generate altitude towards the Dec. 2 - Benefit of the project proposed program 2004 - Frequency of floods and impact on their business - Attitude towards the proposed project - Comments on the project schedule Enterprise interview- 5 Introducing proposed subproject; Nov. 28, - Land acquisition and compensation rate Xinhua Fumin Pig Assess possible impact of the 2004 - Damage and loses caused by flood Farm proposed project to the enterprise - Positive and negative impact of the Generate comments and suggestions proposed project, include land value increase of the factory. - Comments on project schedule PMO of Xinhua 5 Update the PPTA progress, Nov. 26 – - Protected area definition Collect project area and protection 27, 2004 - population in project area and protected area area information and Feb. - Total project area and protected area Generate comments and suggestions 1-3 2005 - Poverty situation in project area and protected area - Repayment plan and funds generation plan - Flood situation in recent years Xinhua Labor and 7 Introduce the proposed program, Nov 26 - Policy for reducing urban poverty Social Security collection data of urban poverty 2004 - Training for unemployed workers Bureau populations and generate comments - Participation of urban poor in project to maximize the poverty impact of the construction project Xinhua Poverty 3 Introduce the proposed project, Nov. 29 - provide job opportunity to poor during Alleviation Office collect poverty situation data and 2004 construction information of the existing poverty - possibility of the pro-poor compensation rate

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Agencies Purpose(s) Date Main Issues Discussed No. People Consulted reduction program Feb. 1 - Insurance for construction laborers Comments and suggestions 2005 Xinhua Statistical 2 Introduce the proposed project, Nov. 28, - Benefit groups of the project Bureau collect socio-economic data, generate 2004 - Time table of the project comments and suggestions Feb. 2 - Socio-economic data availability 2005 Xinhua Civil Affairs 2 Introduce the proposed program, Nov. 29 - Budget allocation for support urban poverty Bureau collection data of urban poverty 2004 reduction populations and existing anti-poverty Feb. 1, - Recruit the urban poor as unskilled labor for programs, Generate comments to 2005 the project maximize the poverty impact of the - Insurance for construction laborers project - Compensation for house relocation Xinhua All Women’s 2 Introduce the proposed project, Nov. 30 - Recruit female labors Federation generate comments and suggestions 2004 - Time table of the proposed project Collecting data of existing programs - Training needs of women for helping women’s development Relevant town or 4 Introduce the proposed programs, Nov 29 to - Positive and negative Impact of the project district governments collect socio-economic data of the 30 2004 - Compensation rate of land and house township and protected villages, generate comments and suggestions Shop owners 20 Introduce the proposed project and Feb. 2 - attitude towards project interview regarding collect their opinions 2005 - willingness to pay willingness to pay

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TABLE 6-2: POSITIVE IMPACTS IDENTIFIED BY DIFFERENT GROUPS OF BENEFICIARIES

Groups interviewed Positive Impacts to be Brought by the Subproject Female group - Protect lives and children - Could sleep well during rainy season - Protect crops and house belongings - Improve access - Do not need to buy rice - Could sell vegetables - Provide protection to the whole community Male group - Provide safe environment for children - Improve transport - Protect assets - Do not need to worry growing vegetables - Could improve vegetable fields further with additional investment - Do not need to buy rice - Could sell vegetables - Provide protection to the whole community Residential Committee - Construction of dike is important measure to control flood and Village Leaders - Prevent soil erosion - Reduce work on dike repairs and farmland restoration - Reduce flood control work load - Improve river side sanitation environment - Promote economic development in local areas Small business persons - Reducing the threats on lives by floods - Increase income during construction - Goods could be protected from being washed away - Have a better environment for business - Benefit the whole community, may not be benefit to each individual Factory (Xinhua Fumin - Promote investment from outside Pig Farm) - Increase income during construction - Protect current facilities and inventories from flood - Increase profit from pig farm - Promote economic development in local communities - Improve transport access Sources: Field visit and small group discussions.

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7 ENVIRONMENTAL MANAGEMENT PLAN

7.1 EMP DEVELOPMENT AND PURPOSE

The objective of an EMP is to outline the mitigation, monitoring and institutional measures to be taken during project implementation and operation, and the actions needed to implement these measures. The EMP provides the crucial link between the mitigation measures described in the subproject and Project-wide IEEs and ensuring that these measures are effectively implemented.

In accordance with the environmental requirements of the ADB a separate, stand-alone Consolidated (project-wide) Environmental Management Plan (EMP) has been prepared. The objective of the Consolidated EMP is to:

(i) provide an overview of the predicted environmental impacts of the proposed Project;

(ii) provide an overview of the recommended mitigation measures;

(iii) present an Environmental Assessment Framework (EAF) for the environmental evaluation of the remaining 28 non-core subprojects;

(iv) present an environmental compliance and ambient monitoring program;

(v) facilitate institutional arrangements for: a. the environmental evaluation of the remaining 28 Subprojects; b. the implementation of the recommended environmental mitigation measures; c. the implementation of the recommended environmental compliance and ambient monitoring programs, including reporting requirements; and, d. ensuring compliance with the environmental requirements of the People’s Republic of China (PRC) and the Asian Development Bank (ADB);

(vi) present the estimated Consolidated EMP budget.

Although the Consolidated EMP is a stand-alone document, it is briefly described in this chapter.

7.2 ENVIRONMENTAL MITIGATIONS

The mitigations to be implemented are presented in Chapter 5 of this IEE report and are summarized in the Consolidated EMP.

7.3 ENVIRONMENTAL MONITORING

Environmental monitoring will be undertaken to:

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(i) provide feedback on the extent and severity of the environmental impacts against the predicted impacts;

(ii) ensure that mitigations are being appropriately implemented; and,

(iii) assess the overall effectiveness of the project environmental protection measures.

Two types of environmental monitoring will be undertaken: compliance and inspection monitoring, and ambient monitoring.

7.3.1 COMPLIANCE MONITORING

Compliance monitoring is primarily aimed at determining if the contractor is meeting the contract requirements in terms of mitigation implementation. As per Chinese normal practice two types of compliance monitoring will be undertaken: mitigation compliance monitoring, and mitigation construction quality monitoring.

Mitigation compliance monitoring will be undertaken to ensure that the Contactor is implementing the mitigations measures in compliance with their contractual requirements and with the environmental regulations and standards of the PRC. The mitigation compliance inspections will be carried out by Environmental Field Inspectors (EFIs) employed by suitably qualified and accredited inspection companies hired by the Subproject PMOs. The Consolidated EMP presents a generic subproject compliance monitoring program. This should be finalized and incorporated in the legal agreement between the subproject PMOs and the inspection companies.

Mitigation construction quality monitoring will be undertaken as part of the overall construction quality monitoring process, as described in the Project Final Report.

7.3.2 AMBIENT MONITORING

Ambient monitoring supports compliance monitoring through assessing either the quality or extent of pollutant generation (effluent) or the quality of the receiving environment (air, water, noise). The objective of ambient monitoring is to provide feedback on the extent and severity of the environmental impacts against the predicted impacts; assess the overall effectiveness of the project environmental protection measures; and ensure that relevant environmental standards of the PRC are being maintained. Ambient motoring will be carried out by the subproject EPBs, either through their environmental monitoring centers or through their own environmental motoring companies. The Consolidated EMP presents a generic subproject ambient monitoring program. This should be finalized and incorporated in the monitoring agreement between the subproject PMOs and the EPBs.

7.4 INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES

The EMP presents institutional arrangements and responsibilities for the implementation of the measure and activities presented in the IEEs and EMP. It specifies the roles and responsibilities of the PPMO and Subproject PMOs, county/municipal EPBs, and other relevant parties. The EMP also presents measures for enforcing mitigation implementation and actions to be taken if non-compliance occurs. Section 1.3 of this report presents a summary of the Project institutional arrangements.

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7.5 ENVIRONMENTAL SPECIFICATIONS FOR CONTRACTOR(S)

Environmental specifications for Subproject contractors are presented in the EMP. These specifications should be included in the contractors’ legal documents, and include:

- Section A: Environmental Management

- Section B: Health and Safety

Each section addresses the following:

Sub-Section 1: description of the Contractor's obligations with regards to those aspects covered by the section.

Sub-Section 2: description of indicators that will be monitored for payment.

The Consolidated EMP also includes recommendations for payment procedures that will clearly oblige the Contractor to fulfill their environmental obligations.

7.6 CAPACITY BUILDING REQUIREMENTS

The EMP designates the environmental capacity building and training activities that will be undertaken to support the Project environmental management.

7.7 BUDGET FOR EMP IMPLEMENTATION

Table 7-1 presents the EMP budget for the Xinhua Subproject.

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TABLE 7-1: ESTIMATED EMP BUDGET, XINHUA SUBPROJECT

Items Cost (104 CNY) Lead Agency (under Description 1 2 3 4 5 total PMO Coordination) Environmental Mitigation

Measures - Fee for provision of temporary toilets and sewage - Xinhua Health and collection and disposal by Health and Sanitation Water Pollution Control 2.28 3.00 3.00 3.00 0.72 12.00 Sanitation Department Department - Contractor - Collection and disposal of construction wastewater - Fee for provision of domestic garbage cans, temporary - Xinhua Health and garbage stations, and collection, and disposal by the Solid Waste Control 0.76 1.00 1.00 1.00 0.24 4.00 Sanitation Department local Health and Sanitation Company - Contractor - Construction waste disposal - Road and construction site dust control (water spraying, Air Pollution Control 1.52 2.00 2.00 2.00 0.48 8.00 - Contractor road paving, equipment hiring and rental, etc) - Sound control measures (fences and barriers) Noise Control 0.38 0.50 0.50 0.50 0.12 2.00 - Contractor - May include some compensation for schools and hospitals - Provision of medical treatment and facilities for workers Public Health Protection 0.61 0.80 0.80 0.80 0.19 3.20 - Contractor - Sanitization of toilet, cooking and other areas - Warning signs Public Safety 0.38 0.50 0.50 0.50 0.12 2.00 - Contractor - Safety measures - Monitoring Station of - Monitoring equipment Environmental Monitoring 1.52 2.00 2.00 2.00 0.48 8.00 local Environmental - Air, water and noise ambient monitoring Protection Bureau Administration, Compliance

Inspection, Capacity Building - Ecological and other surveys - PPMO Environmental Mitigation Design 2.00 0.80 2.80 Consultant - Detailed mitigation design and planning - Design Institute7 - Based on 8% of environmental mitigations and monitoring - PMO and EPB management costs Administration and 0.27 0.35 0.35 0.35 0.08 1.40 - PMO and EPB - Based on 4% of environmental mitigations and Management monitoring - Authorized - Environmental compliance inspections by qualified environmental Site Inspections 3.33 4.38 4.38 4.38 1.05 17.52 company compliance inspection - 2 inspectors, 35,000 RMB/year/inspector company

7 This will most likely be the same water resource design institute that prepared the original Subproject feasibility study that was reviewed under the TA process.

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Items Cost (104 CNY) Lead Agency (under Description 1 2 3 4 5 total PMO Coordination) - Authorized - Environmental mitigation construction quality construction inspections by qualified company Construction Inspections 0.08 0.10 0.10 0.10 0.02 0.40 compliance inspection - Based on 0.25% of environmental mitigations and company monitoring. - Training of local PMO staff, site inspection company Training and Capacity 1.82 2.40 2.40 2.40 0.58 9.60 - PPMO staff, etc. Building - 10 persons trained annually for five years Soil and Erosion Control

Program - Borrow pits and construction site structural erosion control measures, including erosion control walls, Structural Erosion Control 5.44 7.16 7.16 7.16 1.72 28.64 - Contractor wastewater drainage ditches, temporary containment ponds, bioswales, etc. - Borrow pit and spoil pit revegetation Revegetation 7.48 9.84 9.84 9.84 2.36 39.36 - Contractor - Budget for dike vegetation has been included in main project budget; Resettlement 0.75 0.99 0.99 0.99 0.24 3.96 - Contractor - Resettlement area tree and vegetation planting - Borrow pits and construction site erosion control Temporary Erosion Control 0.36 0.47 0.47 0.47 0.11 1.88 - Contractor measures, such as erosion fences. Administration and 4.06 5.35 5.35 5.35 1.28 21.39 - PMO and Contractor - Design, supervision, QA/QC, etc Management Government Revegetation - Contractor to pay to 9.83 12.94 12.94 12.94 3.11 51.76 - Fee set by Hunan Provincial Government Fee local government8 TOTAL 42.87 54.58 53.78 53.78 12.90 217.91 - Equivalent to 263,494 USD

8 The fees rate is set by the Hunan Provincial Government. The fee is to be paid by the Subproject contractor to the local (county or municipal) Water Resource Department. There appears to be confusion on whether this payment is required on projects implemented through the local Water Resource Departments, as this becomes an internal transfer of funds. This issue needs to be resolved.

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8 FINDINGS AND RECOMMENDATIONS

8.1 FINDINGS

The Xinhua City Subproject will result in both socio-economic and environmental impacts.

The socio-economic impacts are primarily related to the construction-phase resettlement. Farmland acquisition will affect a total of 622 households and 1,897 persons. On average each affected person will lose only 0.016 ha of farmland. The remaining 6.2% of the land is rural residential land and industrial land. Approximately 11.6 ha of land will be occupied temporarily during the construction phase, some of which may also be farmland. In addition, a total of 8,212 m2 of buildings will be demolished, including 5,272 m2 of residential houses and 2,940 m2 of non-residential structures. The demolition will relocate 32 households and 172 persons and affect 4 enterprises and 201 employees.

A Xinhua Subproject Social/Poverty Impact Assessment (SPIA) and a Resettlement Plan (RP) have been prepared in accordance with the standards and requirements of the PRC Land Administration Law (1998) and the associated Hunan Provincial Implementation Decree (2000), as well as the ADB’s Policy on Involuntary Resettlement. All recommendations for compensation and resettlement presented in the SPIA and RP should be fully implemented. If done appropriately the relocation will provide an opportunity to improve housing conditions for the affected persons.

Construction of the project is not anticipated to have any significant terrestrial ecological impacts as the project area is generally a heavily modified urbanized/rural farmland mosaic and no sensitive terrestrial resources or rare and endangered flora and fauna have been identified in the Subproject Environmental Impact Area (SEIA). Dike construction will not affect hydrology of the Zishui River. Erosion from construction sites and source rock and soil piles as well as other construction pollution sources may reduce water quality in the Zishui River, as will dredging. Dredging will have to be implemented carefully to minimize impacts. Other potential impacts include solid waste and noise pollution issues during construction, especially in the urban areas. Overall however, environmental impacts are localized and temporary, and can be adequately mitigated.

Operation of the Xinhua dikes will have no significant negative impacts on the Zishui River water level, water quality, or on terrestrial or aquatic flora and fauna.

The main impacts that require special measures are associated with the construction phase, including:

- soil erosion and runoff from exposed earthwork sites;

- the rehabilitation of borrow areas and spoil sites;

- construction wastewater and domestic wastewater from construction camps;

- construction solid wastes and domestic waste from construction camps;

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- air pollution from traffic and construction site dust;

- noise pollution from construction activities and heavy machinery;

- dredging in the Zishui River; and,

- public safety.

A comprehensive program of mitigation measures, environmental motoring and compliance inspections has been designed to address these issues. The estimated budget for environmental protection and monitoring during the construction stage is US$ 263,494 (CNY 2,179,100). If the mitigations are appropriately implemented the project should have minimal negative impacts and should result in overwhelming positive benefits brought about by the flood protection it will provide.

8.2 RECOMMENDATIONS

1. All resettlement and compensation recommendations in the SPIA and the RP should be strictly followed.

2. All mitigations recommended in this report and in the stand-alone EMP should be implemented.

3. The training and capacity building recommended in this report and in the stand-alone EMP should be implemented.

4. The environmental monitoring and compliance inspections recommended in this report and in the stand-alone EMP should be implemented.

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9 CONCLUSION

The Xinhua City Subproject will improve flood protection in the Xinhua urban area through the construction of dikes, drainage works and river dredging.

The most significant socio-economic impacts are primarily related to the construction-phase resettlement. All recommendations for compensation and resettlement presented in the SPIA and RP should be fully implemented. If done appropriately the relocation will provide an opportunity to improve housing conditions for the affected persons.

Potential environmental impacts are associated with construction phase solid and liquid wastes, noise and air pollution and dredging. Negative environmental impacts are generally localized, short-term, and can be fully mitigated or minimized.

A range of mitigation measures has been recommended to address the environmental issues raised in this report. The mitigations relate to the rehabilitation of borrow areas, control of soil erosion and runoff from earthworks, prevention of water, air and solid waste pollution, reduction of impacts from dredging, noise reduction and public safety. The estimated budget for environmental protection and monitoring is US$ 263,494 (CNY 2,179,100).

A separate and stand alone environmental management plan (EMP) has been developed which guides the implementation of the recommended mitigation measures; presents environmental compliance and ambient monitoring programs; facilitates institutional arrangements for the implementation of mitigation measures and the environmental monitoring; and, ensures compliance with the environmental requirements of the People’s Republic of China (PRC) and the Asian Development Bank (ADB).

With the implementation of the recommended mitigation and monitoring measures the Subproject is not expected to have any significant negative environmental impacts. Overall the flood protection provided by the Subproject will significantly enhancing the safety and quality of life of the residents living and working in the protection zones.

Given the limited environmental impacts identified in this IEE the Subproject’s tentative designation as Category B under the ADB’s environmental guidelines has been confirmed. As no significant residual environmental impacts are expected, and all minor impacts predicted during construction and operation can be fully mitigated, no additional studies or EIA is required.

SOGREAH - July 2005 PAGE 65 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

APPENDIX I

XINHUA SUBPROJECT SITE PHOTOS

SOGREAH - July 2005 PAGE 66 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Start of earth dike at Zhujialong, on the right bank of the Location of drainage channel outlet at Zhujialong, on the Zishui River. Looking upstream. right bank of the Zishui River.

Location of new pumping station at Shangdu, on the Right bank Zishui River at Zijiang Bridge. An earthen right bank of the Zishui River. dike will be constructed here, and some resettlement will be required.

Location for inlet opening of Laorenchong drainage Huashang Village area, left bank of Zishui River, looking channel. upstream. This is near the start of the dike upgrading. The dike here will be strengthened and raised.

PEOPLE’S REPUBLIC OF CHINA JAN 2005 HUNAN FLOOD MANAGEMENT PROJECT ASIAN DEVELOPMENT BANK APPENDIX I

XINHUA SITE PHOTOS PLATE N°1

SOGREAH - July 2005 PAGE 67 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Existing pumping station, Huashang Village area, left Bei Tower, located on existing dike, left bank of Zishui bank of Zishui River. A new pumping station will be River. The dike in this area will be strengthened and installed here. raised. Particular attention will need to be paid to protecting this provincially protected 278 year old tower.

Sewage drainage canal. This canal drains untreated Sewage drainage canal outlet to the left bank of the sewage from Xinhua City to the Zishui River. Zishui River.

Existing dike, left bank of Zishui River. The dike here will Nongfeng existing earth borrow pit, northern Chengdong be raised and strengthened. Protection Zone.

PEOPLE’S REPUBLIC OF CHINA JAN 2005 HUNAN FLOOD MANAGEMENT PROJECT ASIAN DEVELOPMENT BANK APPENDIX I

XINHUA SITE PHOTOS PLATE N°2

SOGREAH - July 2005 PAGE 68 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Quinfeng existing stone quarry, northern Chengdong Nongfeng spoil disposal area, northern Chengdong Protection Zone. Protection Zone.

Proposed spoil pit area, Zhujialong, right bank of Zishui Existing sand and gravel extraction, Nongfeng Ferry River. The low lying area adjacent to the existing dike area, northern Chengdong Protection Zone. will be filled with spoil materials.

Area for dredging, Nongfeng Ferry area, northern Chengdong Protection Zone.

PEOPLE’S REPUBLIC OF CHINA JAN 2005 XINHUA FLOOD MANAGEMENT PROJECT ASIAN DEVELOPMENT BANK APPENDIX I

XINHUA SITE PHOTOS PLATE N°3

SOGREAH - July 2005 PAGE 69 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (E7): XINHUA CITY INITIAL ENVIRONMENTAL EXAMINATION (IEE)

APPENDIX II

XINHUA SUBPROJECT SITE VISITS9

Persons Met Mr. Yangwei, Senior Engineer, Loudi Municipal Water Resources Bureau Mr. Wu Wenxiong, Engineer, Loudi Municipal Water Resources Bureau Mr. Zhao Zhibiao, Engineer, Loudi Municipal Water Resources Bureau Mr. Xiao Chaowen, Deputy County Governor of Xinhua County Mr. Wang Benxiu, Deputy County Governor of Xinhua County Mr. Liu Guangliang, Deputy County Governor of Xinhua County Mr. Zhou Xiaoxiong, Director of Xinhua County Water Resources Bureau Mr. Xiao Chaowen, Vice-Director of Xinhua County Water Resources Bureau Mr. Jiang Jiangzhi, Engineer, Xinhua County Water Resources Bureau Mr. Yuan Dinghua, Engineer, Xinhua County Water Resources Bureau

PMO Participants Madam Li Kuangyun, Director, PMO Mr. Zhu Jianrong, Vice-Director, PMO Mr. Shen Honghui, Senior Engineer, PMO

TA Participants Mr. Ben Hallam, TA Team Leader Mr. Zhang Zhenquan, TA Domestic Hydraulic Structure Expert and Co-Team Leader Mr. John Wicks, TA International Financial and Economic Assessment Expert Ms. Dr. FuChun, TA Domestic EIA Expert Mr. Wang Lingjun, TA Domestic Financial and Economic Assessment Expert Ms. Wang Wangyin, TA Domestic Social Impact Assessment Expert Mr. Zhang Tieping, TA Translator

Period 3/02/2005-4/02/2005

Locations Visited Xinhua County − Huashang Village, an existing earth dike with 1 in 5 year flood event protection standard will be strengthened, and a pumping station will be built. − Bai Tower, a 278 year old provincially protected cultural relic located on the right bank of the Zishui River. A sewage ditch discharges the sewage from the west urban area to Zishui River. Gongnong He Pumping station, an existing pumping station located beside bank. − Zishui Bridge, an earth dike will be built on the right bank of Zishui River, while the existing earth dike on the left bank will be raised and strengthened. Some houses will be demolished. − Nongfeng ferry, dredging on the right bank, the start of new earth dike on the right bank, an existing sand source pit. − Laorenchong drainage channel. − Qinfeng Bridge, the outlet of Laorenchong division channel.

9 Does not include site visits and surveys undertaken by the TA social assessment team.

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− Nongfeng spoil pit, next to Nongfeng earth pit. − Nongfeng earth pit, a waste hill. − Qinfeng Stone Quarry, a new stone quarry close to the Laorenchong diversion channel − Shangdu Pumping station, an existing pumping station connected with Zhujialong drainage channel. − Zhujialong channel. − Shangdu spoil pit. − Shangdu, the start of the earth dike.

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