IPP353
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Public Disclosure Authorized The World Bank Nanning Urban Environment Project Public Disclosure Authorized Social Assessment Report Public Disclosure Authorized
SA Research Group, Hehai University January 2009 Public Disclosure Authorized Summary
Nanning, the capital city of Guangxi Zhuang Autonomous Region of the People's Republic of China, is under the process of booming urbanization. However, rapid urban expansion and economic growth have also brought about the problems of environmental pollution and ecological destruction, such as insufficient ecological water supply of tributary rivers, reduction of flood storage capacity, serious pollution in riverain areas, increasing volume of wastewater in urban areas, zero rate wastewater treatment in county towns etc. To different extents, all these hence cause pollution to the water body, damage the ecological environment, and adversely impact the socio-economic development and the living quality of the citizens. In this background, Nanning Urban Environment Project (NUEP) is proposed and which intends to apply for a loan of USD 100 million from the World Bank for project construction. The SA Group of Hehai University started the social assessment for NUEP in August 2008. During the course, the SA Group has received great help from Mr. Wang Chaogang, Senior Social Specialist of the World Bank, who guided us unselfishly in making the assessment and the active cooperation from the local leaders and residents during the field survey. The SA Group takes this chance to express its special thanks. Data collection of this Report was made via 5 methods, respectively: documentary research, PRA approach, individual household interview, focus group interview, and questionnaires. The contents of the Report include: (i) social and economic survey of the project areas; (ii) stakeholders and public participation; (iii) social impacts of the Project; (iv) public paying willingness and their affordability; (v) project and the ethnic minorities; (6) the Project social risks and corresponding measures. Socia-economic profiles of the project areas. The economy of Nanning City is comparatively less developed. The GNP of the whole city was RMB 8701481 million, averagely per capita RMB 13071, being lower than the national average level. The river improvement component and the phase-II of Jiangnan WWTP sUb-component are located in the urban area where the economy is well developed with low agricultural population. However, the wastewater components in the counties are located in the places of less economic development and high agricultural population. Project stakeholders and public participation. The stakeholders of the Project can be classified into three categories, respectively: governmental departments, implementing agencies (lAs) I construction units, and affected people (APs). During the course of preparing this report, the SA Group has undertaken adequate discussion and participation with the stakeholders with regard to the issues of construction necessity, possible positive and negative impacts, paying willingness and affordability etc., totally calling 15 discussion meetings with 77 persons involved and distributing 1061 questionnaires. Project social impacts. The river improvement component will bring about positive impacts on the people of the project areas due to the improvement of urban environment,
1 .. drinking water quality and flood control. The wastewater components will also bring about positive impacts in the aspects of fulfillment of the environmental target of the government, • improvement of drinking water quality, improvement of local environment and control of water-borne diseases. The main negative impacts brought about by the Project are land acquisition and resettlement, which however, can be mitigated or eliminated through preparing detailed resettlement action plans (RAP). The public paying willingness and their affordability. In terms of the paying willingness, affordability and wastewater tariff collection in the project areas, the SA Group is in the opinion that, based on the design conception of "cost compensation, . marginal profit", RMB 0.8 rr of wastewater treatment tariff is feasible and affordable by the majority people of the project areas. In addition, wastewater tariff levied according to the actual water consumption of individual family was determined according to the actualities of the project areas, which is quite operable. However in collection of wastewater tariff, different methods should be adopted according to different groups of people in the project areas. AlthOUgh the proposed RMB 0.8 rr wastewater tariff is affordable by the majority people who also have high paying willingness, during collection, special considerations should be also given to different groups of people, especially the vulnerable groups such as the recipients of the minimum living standard assistance. The project and the ethnic minorities. The Project is located in the capital city of Guangxi Zhuang Autonomous Region. Among the total population of Nanning City, the population of ethnic minorities accounts for 57.80%, while Zhuang accounts for 55.90%. In the eight counties and urban districts covered by the Project, except for Xixiangtang District, Binyang county and Hengxian county, ethnic minorities in the rest five areas constitute the vast majority of the local population, overwhelmingly the communities of Zhuang. The ethnic minorities are highly assimilated to the Han People and both of them are benefited from the Project equally. The total population benefited from the Project is 1.15 million, of which, the ethnic minorities account for 61 %, and most of them are Zhaung beneficiaries. All the consultation between the SA Group and the affected minority groups were conducted with prior notice and in a free manner. Totally 15 discussion meetings were held, investigating 589 persons of ethnic minorities, of which, 545 of Zhuang people. As a result, the project has received extensive support of the minority communities. As for the ethnic minorities, the general impacts of the project are positive. The project construction will create more job opportunities, upgrade the living environment, improve the living quality and reduce the occurrence of diseases. The cultural preservation of the ethnic minorities of the project areas has been ensured under the national legal framework, and this project will improve the local ecological environment and will not affect the cultural inheritance of the ethnic minorities. In addition, implementation of the project will not interfere with the language and region of the ethnic minorities, nor will break off their social customs and habits. The negative impacts on the ethnic minorities are reflected in two aspects: (i) Land acquisition and resettlement; and (ii) Some minority communities of Shang lin and Mashan counties may be unable to benefit from the project due to low affordability. The RAP has given full consideration on mitigating the possible negative impacts on the ethnic
- 2 minorities caused by the land acquisition and other issues, ensuring their living standards shall not be decreased due to land acquisition and house demolition. As for the low affordability of some minority communities in Shanglin and Mashan counties, the local governments have committed, before the project implementation, to work out necessary favorable policies for the poor to be equally benefited from the project, such as reduction or exemption of wastewater tariff. The SA Group is in the view that the demand of ethnic minorities has been incorporated in the project design scheme, and this project is out of the requirement of OP 4.10 (Operational Policy on Indigenous Peoples) on preparing an alone Indigenous Peoples Planning (IPP). Project social risks and suggestions. According to the SA Group, the main potential social risks of the river improvement component are: (i) risk caused by the residents due to the lack of environmental consciousness; (ii) risk caused by the change of farmland irrigative modes; (iii) risk caused by the impacts on "temple of the god of earth"; (iv) risk caused by the habits of the residents; and (vi) risk caused by land acquisition and house demolition. These risks can be avoided through adopting the following measures: (i) strengthen the public education for ecological protection and enhance sewage discharge monitoring against the riverside enterprises and households; (ii) pre-set the sites for reasonable water pumping in the engineering design; (iii) the compiler of the RAP should discuss with the villagers for re-construction of "temple of the god of earth" within the cost of the RAP; (iv) place warning signs at the dangerous river sections after project completion; and (v) work out feasible resettlement policies. The major potential risks of the wastewater components are: (i) risk caused by the low affordability of the poverty population (especially in the project areas of Mashan and Shanglin counties.); (ii) risk caused by low or unwillingness of enterprises to connect their wastewater with the WNTPs; (iii) risk of collecting wastewater tariff from those who do not use tap water; (iv) risk caused by land acquisition and house demolition; (v) risk caused by the damage of sewage pipelines; and (vi) risk caused by the discharge of sewage. The suggestions for avoiding risks of wastewater components are: (i) public hearings should be conducted before raising the wastewater tariff in the low-affordability areas, and reduction or exemption shall be given to the poverty group through coordination; (ii) strengthen environmental education for the enterprises and, in the project design, the wastewater treatment charges should be covered by the project budget; (iii) enhance the work of collecting wastewater tariff from those who use other sources of water other than tap water; (iv) compile the RAPs for the wastewater components; (v) establish the emergency response mechanism for pipeline repair and notify the public of the hotline; and (vi) establish the self-monitoring mechanism for standard discharge and conduct regular or irregular check on the outlet water quality. The SA Group is in the opinion that the Project can adapt to the local socio-economic development and satisfy the requirement of the local people on upgrading the environment. In addition, the affordability and paying willingness of the people in the project areas can meet the ends of the financial budget of the project. The ethnic
- 3 minorities are also benefited from project equally with the Han people. The project construction will not have negative impacts on the cultural preservation of the ethnic minorities, while their demands have also been incorporated into the general design scheme of the project. The social risks identified by the SA Group can be avoided through well-designed preparatory works of the lAs and the optimized engineering designs of the projects.
·4· Contents
Summary ...... - 1 1. Preface...... 1 1.1 Project Profile and Task of Social Assessment ...... 1 1.2 Methods for Social Assessment...... 1 1.3 Contents of the Report ...... 3 2. Socio-Economic Profiles of Project Areas ...... 4 2.1 The Profile of the Project and the Components ...... 4 2.2 Socio-Economic Profiles of the Project Area ...... 6 3. Stakeholders and Public Participation ...... 13 3.1 Identification of Stakeholders ...... 13 3.2 Public Participation Procedure ...... 16 4. Analysis of Project Social Impacts ...... 18 4.1 River Improvement Component ...... 18 4.2 Wastewater Component...... 19 5. Affordability and Paying Willingness of APs ...... 23 5.1 Paying Willingness ...... 23 5.2 Methods for Collection of Fees ...... 26 5.3 Affordability ...... 27 6. Project and Ethnic Minorities ...... 32 6.1. Profile of the Ethnic Minorities in Project Areas ...... 32 6.2 PartiCipation of Ethnic Minorities ...... 36 6.3 Analysis of Impacts on Ethnic Minorities Caused by Project...... 38 Appendix 1: Project and Ethnic Minorities ...... 52 Appendix 2: Affordability and Paying Willingness of APs ...... 80 Appendix 3: Agenda of SA Group ...... 1 06 Appendix 4: Themes and Viewpoints of Discussion Meetings ...... 109 Appendix 5: Public Questionnaire on Wastewater Treatment Component...... 110 Appendix 6: Outline for Interviews with Enterprises and Shop Owners ...... 117 Appendix 7: Outline for Public Structure Interview ...... 118
1 1. Preface
1.1 Project Profile and Task of Social Assessment
In order to further improve the urban water environment, upgrade the flood control and wastewater treatment capacities of the city, safeguard the security of drinking water, as well as protect and improve the urban eco-environment and the living environment, Nanning Municipal Government (NMG) applies to the World Bank for a loan to be used in NUEP. The components of NUEP include: (i) environmental improvement for 3 tributary rives in the urban area; (ii) construction of wastewater treatment facilities in the urban area and counties. The implementation period of the project is from 2008 to 2011, and the project will be completed in 2012. This Report will analyze the social impacts that may be brought by the implementation. Through well-organized field survey, it will identify, analyze and assess various social impacts caused by the project, strengthen the effective participation of the project stakeholders, optimize the engineering design and implementation scheme and mitigate the social risks.
1.2 Methods for Social Assessment
From August 10 - 23, 2008, the SA Group initiated the process of data collection in the project areas, mainly using five methods respectively: documentary research, PRA approach, individual household interview, focus group interview, and questionnaires. 1.2.1 Documentary research • Collect the local chronicles concerning the profile of project area and other documents reflecting local customs; collect the documents on social investigation of local minority areas; collect the statistical yearbooks reflecting the social economic situation of the project areas. • Collect the laws and policies and other documentary materials on environmental protection and wastewater treatment of the project areas. • Collect the documents concerning the use of water sources and sewage treatment measures etc. 1.2.2 Focus group interview As for the major issues, focus group interview was adopted. In the project areas with wastewater component, different institutions were consultated with regard to the issues of local environmental protection, use of different water resources by different communities, wastewater treatment and discharge, impacts of wastewater pollution on the public health. Especially, interviews were made to heads of the relevant departments of the enterprises on water use and wastewater treatment. 1.2.3 Individual household interview In this regard, the interviewees were from the riverside residents of Fenghuangjiang river, Lengtangchong river and Liangqinhe river of the NUEP. During the investigation, the interviewers were informed of the living style of the local people and the potential impacts
1 caused by the project. 1.2.4 PRA Approach PRA approach enables SA group members have objective understanding of socio-economic situation of the project areas and project construction. In river improvement component, the PRA approach was adopted to inquire about the social life of the riverain residents; whilst in the wastewater components, it was used to know about the sewage discharge, site selection for WWTPs and the local socio-economic status. 1.2.5 Questionnaire Catering for the critical issue of wastewater tariff in wastewater component, the SA group has compiled the Questionnaire on Paying Willingness and Affordability for Wastewater Component under NUEP Financed by the World Bank (as shown in the appendix). Accordingly, due to the limited time and heavy task, the SA Group, in consideration of the acquired information of existing local sewage discharge and the actualities of the stakeholders of the project areas, adopted the purposive sampling method to select the most informative samples as the survey population. In this way, the selected samples can ensure a full coverage of persons of all ages, occupations, genders and various ethnic groups, including those at different distances to the sewage outlets. Such would help reflect the real affordability and paying willingness of different groups in a good manner. Table 1-1 Summary of Appraisal Methods Adopted by the SA Group Appraisal Time Components Participants Contents Methods August River improvement Documentary 1 to 3 SA Group Relevant documents of components, wastewater Research August members the project components 17 15 discussion meetings; 3 SA Group members, 3 lAs Local environmental August representatives, protection, use of water Focus Group 14 to Wastewater com ponent 50 heads of sources of different Interview August governmental communities, wastewater 21 departments; treatment and discharge 22 heads of enterprises or hotels 3 SA Group August Living style of the local Individual members, 2 lAs 15 to River improvement people and the potential Household representatives August components impacts caused by the Interview and 9 16 project. households August 3 SA Group Social life of the riverain River improvement PRA 11 to members and 2 residents; component, wastewater Approach August lAs Sewage discharge of component 21 representatives project areas. 3 SA Group The affordability, August members, 22 paying willingness and 14 to Questionnaire Wastewater component surveyors and environmental August 1061 local awareness of various 21 people ethnic groups
2 In this survey, the questionnaires were recollected on the spot. During the whole process, the surveyors guided and supervised the surveyees to fill in the questionnaires. • Totally, 1016 questionnaires were distributed and 1010 copies were returned, the valid return rate reached 99.41%. Among the survey population, females account for 53%, higher than males of 47%. The average age of survey population was 31.32 years old, standard deviation was 10.755. The youngest was 16 (9 persons); and the oldest was 70 (one person). The Zhuang accounted for 54.6%; the Han for 42%; the Yao for 3.6%; the Hui, Mao and Mulao summed up to 0.8%. Among them, 13.9% have received university education; 20.8% have received junior collection education; 37.9% finished senior middle school education and 23.% finished junior middle school education; 4% have just received primary school education. The samples were in conformity with the population situation of the project area. The adoption of five assessment methods helps the SA Group members acquire the actuality of the project area and have a full understanding of the inter-adaptation between the project and local society. Thus, the necessary informations for SA have been collected.
1.3 Contents of the Report
According to Project Proposal and field survey, the SA Group determines the following contents to be the focus for social assessment of this Project. (1) The project is located in the Nanning, the capital city of Guangxi Zhuang Autonomous Region. Whether the project has gained extensive support from minority communities. Whether their willingness has been taken into project design. Whether there is necessity to develop an alone IPP. (2) The issue of sewage treatment fee after the completion of WWTPs such as the affordability and paying willingness of the public, wastewater tariff collection and sewer networks connection etc. According to the Terms of Reference (TOR), this Report will focus on the above contents. It will introduce the socio-economic development profile of the project area; analyze the key social elements affecting the implementation of the project; classify the major stakeholders and analyze their needs and the impacts they suffered; make clear the positive and negative impacts of the project; analyze the potential social risks caused by the project; put forward the measures to avoid or mitigate the negative impacts by taking the social elements affecting the fulfillment of the project target into the project scheme design. The contents of the Report include: (1) social and economic survey of the project areas; (2) stakeholders and public participation; (3) social impacts of the Project; (4) public willingness to pay and their affordability; (5) project and the ethnic minorities; (6) the Project social risks and corresponding measures; (7) Appendices.
3 2. Socio-Economic Profiles of Project Areas
2.1 The Profile of the Project and the Components
The Project comprises of two components that are subdivided into eight sUb-components. The first component, namely river improvement components, consists of two sUb-components: (i) Fenghuangjiang River Eco-environmental Improvement Sub-component; and (ii) Liangqinghe River and Lengtangchong River Eco-environmental Improvement Sub-component (phase-I). The second component, namely the wastewater component in urban and rural areas, consists of six sUb-components: (i) Phase-II of Jiangnan WWTP; (ii) WWTP of Wuming County; (iii) WWTP of Binyang County; (iv) WWTP of Hengxian County; (v) WWTP of Shang lin County; and (vi) WWTP of Mashan County. The river improvement component includes river course upgrading, storm water system, water replenishment and ecological rehabilition. The wastewater component in urban and rural areas mainly includes the construction of WWTPs, wastewater pipelines and pumping stations. (Details are shown in Table 2-1) The service area of this Project covers Nanning city and the county towns under its jurisdiction. Two SUb-components of the river improvement component are located respectively in Xiangsihu New District and Wuxiang New District, which service area will cover the long term development of Nanning city. Phase-II of Jiangnan WWTP mainly cover the domestic wastewater and partly industrial wastewater of Xiangxihu New District and Wuxiang New District. The phase-I respectively of Wuming WWTP, Bingyang WWTP, Hengxian WWTP, Shanglin WWTP and Mashan WWTP mainly cover the population of the county town. In addition, this project is co-ordinative with the urban planning of Nanning city. For example, the construction of Xiangsihu and Wuxiang New Districts have covered water supply, sewage engineering and other items. All these items give strong supports to the successful implementation of this project.
4 Table 2-1 Summary of Project Components of Nanning Urban Environment Project National . Benefited Sub-Components Construction Contents & Scope Location ~~~~r:; To!~~:et Population or Not (10 thous.) I----~ ~---~ ~ ~ ~---~ ~~~~-_--Jf-- ~---~- River course upgrading: 4.754km (totally 6.3km to be improved), including: 14.32km of sewage interception pipelines; 1 water D . a Fenghuangjiang replenishment pumping station (Q=1.3m3/s); Xiangsihu No ral~ ge 72 River SUb-component 5.7km water-replenishment pipelines; 23 drainage outlets; 3 New District popa~:ron 3. stone weirs; 2 flood dams and 2 man-made flood-regulating lakes. u I . t-----~ ~ ___ ~ ___--t-;0-ct'-h~e~r~s include afforestation of flat-lands and bank slopes._1----___ Liangqinghe river upgrading: 6.27km, with 77.12hm2; Phase-I of Lengtangchong river upgrading: 2.03km, with 27.50hm2. Both Planned Liangqinghe River including rivercourse treatment, storm water pipeline and Wuxiang N population of 24 and Lengtangchong ecological restoration. There are 2 spillweirs, 3 flood-regulating New District 0 Wuxiang River Sub-component and landscaping lakes; 76 stormwater inlets. In addition, the river New District l-=~~-~ '7---;;--;-;___f--co,,-,=-u::-::~rse flat-lands and bank slopes will be afforested.__ __ ~~II of Jiangnan Construct WWTP of 240,000tld. Jiangnan District No 41.8 +------~~~~- -- ~ ~~~-----:-----I-- Chengxiang Town and Wuming WWTP, Construct WWTP of 50,000tld, with 23.52km of sewage pipeline Wum' Cou t N Overseas 125 Phase-I (excl. ASEAN Economic Zone), 5 sewage pumping stations Ing n y 0 Chinese . residential . ~ . • . ____ ~I----~ ~_a____re,--,a"------!f--- ~ _____-----I Blnyang WWTP, Construct WWT~ of 20~OOOtld; with 22.37 km of sewage pipelines; Bin an Count No Lu u Town 1303 Phase -I _~~ 1 sewage pumping station. y g y x . Hengxian wIvr---P: Construct WWTP of 20,000tld; with 22.42 km of sewage pipelines; Hengxian No Hengzhou 1075 ~ha_se :- I Lsewage pumpirlg station. county_TQvvn_ __._-----1 ~~:~~I~ I WWTP, Construct WWTP of 6,000 m3/d, with 8.7km of sewage pipelines Shanglin County No D:~:~9 4.~ Mashan WWTP,Construct vvw:rp of 6.. 000 m"/d; with 9.2 km of sewage pipelines; 1 M~~h n Count Yes--- Baishall-I---~.29 . Phase -I sewage pumping station. a y Town ~----I- Total 114.71
5 2.2 Socio-Economic Profiles of the Project Area
In general, the socio-economic situation varies greatly in different project areas. The river improvement compnent and the phase-II of Jiangnan WNTP are located in Nanning urban area where the economy is well developed with low agricultural population. However, the WNTP components in the counties are located in the places of less economic development and high agricultural population. Nanning is the capital city of Guangxi Zhuang Autonomous Region. Of the total population of Nanning city, ethnic population accounts for 57.80% and Zhuang population accounts for 55.90%. Other project counties and districts are populated with certain percentage of ethnic groups. Among them, Liangqing District ranks the first where the Zhuang population accounts for 91.69% of the local total population. In Wuming, Shanglin and Mashan counties, the Zhuang population respectively accounts for 87.04%, 78.66% and 74.99%. In Binyang county, the Zhuang population accounts for just 19.14% of its total population. In sum, Nanning's urbanization is in low level. The urban population accounts for just 27.06% of its total population. Except for Jiangnan District and Xixiangtang District where large proportion of population are non-agricultural, other project districts including Liangqing District have less than 20% non-agricultural population. Shang lin, Hexian and Binyang counties have only 10% non-agricultural population. The counties served by WWTPs components have comparatively higher percentage of non-agricultural population, which is outnumbered by agricultural population. Particularly, Chengxiang Town of Wuming county ranks the top with non-agricultural population, accounting for 49.11% of the total township population. In Nanning Overseas Chinese Investment Zone benefited by Wuming WWTP SUb-component, the total population is 34176, of which non-agricultural population is 33147, accounting for 97% of its total population. Thus it is an area concentrated with non-agricultural population. Details of population distribution of the project areas are shown in Table 2-2.
6 Table 2-2 Distribution of Ethnic Minorities in Project Area I County (by the end of 2006)
Agricultural Total Non-Agricultural Percentage Total Percentage Percentage Agricultural Non-Agricultural Population Percentage of County Population of Minority ofZhuang Percentage Percentage of County Conty.Town Town I Town Population Population - ! ~.. - 55.90% 72.94% 27.06% Total of Nanning ; 67189~~ 57.80% .. . __ ;.._._. .._ .. -_.__..._ .~.. -----
Jiangnan District 418195 i 50.45% 49.33% 54.43% -----~ ---- 45.57%_~_+-
~iXi;~gtang Distric;t _ n-~7722861.· nun 41.41 % ! 39.06% 31.95% ._---_. . _- Liangqing District 92__ 91.69% 88.77% _~2158091_ ~ ._. t---- . - -~----. 1--· ~~~:: 1- __ I··~ Wuming County 660823 , 87.25% 87.04% 82.59% 17.41% 98751 I 50.89% 49.11% Binyang County _1Q06758 In 19.58% 19.14% 86.18% , 13.82% 2125121 72.62% 27.38% i-..---...-. ----- Hengxian county 37.99% 88.57% 11.43% 159697 I 57.84% 42.16% 11~3_8.13% ---- ---- ---- ---- Shanglin County 473712 85.21% 78.66% 89.77% 10.23% 58422 59.31% 40.69% , ..._. ._. . ._. Mashan County - 513748l - 83.38% 74.99% 92.77 7.23% 78514 71.43% 28.57% Data sources: Total population and percentage of urban and rural population are based on Nanning Statistical Yearbook 2007.
7 The economy of Nanning City is comparatively less developed. The GNP of the whole city was RMB 8,701,481, averagely per capita RMB 13071, being lower than the national average level. Among the project areas {counties, the three urban districts and Wuming county enjoy good economic condition whilst in other four counties, GNP per capital is lower than RMB6000. In Particular. Mashan county is the national-level poverty county which GNP per capita is only RMB 3622. The proportion of industrial structure shows that the tertiary industry in Nanning urban area is well-developed. In Binyang county, the secondary industry plays the leading role. In other counties, agriculture accounts for large proportion in their industrial structure. The socio-economic indicators of all project counties are shown in Table 2-3.
8 Table 2-3 Socio-Economic Indicators of Project Area I Counties (2006) Towners' Incl: Fanner's Average Average Per-capita Consumption Average Financial Towners' Per-capita GNP I per-capita Industrial Per-capita Average on Water, Per-Capita Revenue Average Disposable (RMB10000) GNP Structure Revenue Living Electricity, Net (RMB10000) Income (RMB) (RMB) (RMB) Consumption Fuel and Income
_ • __ u_ (RMB) I Ot~ers (RMB) I (RMB)
Total of Nan_ni_n==-g_+-__ 8701481 13071 15.44:34.17:50.~~_u 1203600-~_ 10193 7303 I 539.68 3033 Jiangnan District I 9468 6796 547.65 . ---1i----- Xixiangtang District 6246072 24760 7.45:34.73:57.821 1046331 414}i~ 92051__ 7393 543.86 3421 Uangqing District 1 __ ._~ .___ 8471 5018 559.01 WulTling County 668352 10183 40.50:33.51:25.99 [ 38685 _589 8798 6236 465.13 3703 ----- Binyang County 591971 5907 26.16:38.70:35.14 r 37333- 3~3·- 8851 4997 2979 Hengxian county 618317 553~ 35BO:2B753545~_416B7J~373l B635 i 6176 3032 Shanglin county-I 173837 ~~87 45.25:2~.57:29.18 I 128881 _~'7'3t'_ 7405 I 5182 2450
IM~~han County I 184966 3622 34.47:32.24:33.29 I 11019 I 216 _ 7120 I 4618 2365 Data sources: Nanning Statistical Yearbook 2007.
9 The tertiary industrial enterprises producing most domestic wastewater are concentrated in Nanning urban area, where star hotels and abovenorm restaurants are extensively distributed whilst in project counties, small inns and cookshops are easily found. In Nanning urban area, there are 194 star hotels and 180 above-norm restaurants, accounting for 92.78% of the total. The main reason is that China-ASEAN Expo brought about the booming service industry in Nanning in recent years. No statistical record of star hotels and abovenorm restaurants was found in the backward Shanglin and Mashan counties.
Table 2-4 Summary of Star-hotel and Above-norm Restaurants in Project Area I Counties Total Legal Person Industrial Unit Employee Operational Enterprise (Nos.) (person) Income (RMB (Nos.) 10000) Total of Nanning 123 194 23712 169185 Urban area 116 180 22782 165994 Wuming County 2 4 299 1311 Binyang County 2 7 399 797 Hengxian 3 3 232 1082 county Shanglin County 0 0 0 0 Mashan County 0 0 0 0 Data sources: Nanning Statistical Yearbook 2007.
In addition to the collection of domestic sewage, the wastewater component will also collect partial industrial wastewater. Nanning's industrial production is concentrated in urban area where gross industrial output value is RMB 45.51683 billion, accounting for 71.20% of the total gross industrial output value of the whole city. Among the project counties, Wuming, Binyang and Hengxian counties have numerous enterprises. The gross industrial ouput value is respectively RMB 5.32141 billion, RMB5.95316 billion and RMB 4.31149 billion in the three counties. In project areas, paper mills, cement works, steel works, silk mills and starch factories are the major dischargers of wastewaters. The environmental department said that those wastewater dischargers have their own sewage treatment facilities which have passed the environmental evaluation by the local environmental protection department to ensure standard discharge. In addition, they have recycled the wastewater to some extents for saving water cost.
10 Table 2-5 Numbers of Enterprises and Gross Industrial Output Value of Project Area I County
I Number of Enterprises Inclu. Gross Output value (RMB10000) !
Classified as ught I Classified as Ught I Heavy Industry Classified by scales Classified by Scales Heavy Industry
Total Total Small-.Ize Large Medium Small-.rze Light Heavy Large Medium Ught Industry Heavy Industry EnterprIese & Enterprise Enterprise Enterpriese Industry industry Enterprise Enterprise Individual
Total of Nanning 32692 21664 11026 3 64 32625 6392612 3342337 3050475 405659 1656613 4126541 -- -- -- Urban area 9755 7036 2719 3 40 9710 4551663 2379342 2172341 405659 1461146 2664677 --- Wuming County 6626 4362 2266 0 4 6624 532141 221361 310760 0 47482 484659
Binyang County 8445 6442 2003 0 7 8438 595316 376481 216635 0 117634 477662 -- -- --- Hengxian county 4572 2361 2191 0 6 4564 431149 251936 179213 0 136324 294625 r------ -- -- - Shanglin County 1062 331 751 0 1 1061 87927 49467 36440 0 16584 71343 1- -- --- Mashan County 1137 556 561 0 1 1136 64001 23624 60177 0 9534 74467 -- - '---- - Data sources: Nanning Statistical Yearbook 2007.
11 In Nanning city, the towners' per-capita average disposable income is RMB 10193 and their per-capita living consumption is RMB 7303, of which consumption on water, electricity, fuel and other items closely related with this Project is RMB 539.68. Compared with towners, the farmers of the project counties have low per-capita net income. In Wuming county where farmers enjoy highest net income, the per-capita net income is only RMB 3703. In Mashan county, farmer's per-capita net income is only RMB2365. In Nanning city, those whose income is lower than the minimum living standards can get the subsidiaries. There is 2.92% non-agricultural population getting the subsidiaries. The subsidiary standard in the above-mentioned three urban districts is RMB2601 month. The subsidiary standard in Hengxian and Binyang counties is RMB220 Imonth, that in Wuming county is RMB 200 Imonth and that in Mashan and Shanglin is RMB180 Imonth. In accordance with Methods of Nanning City for Ensuring Minimum Living Standards for Urban People, the MLSS population shall enjoy preferential policy on paying water tariff. Accordingly, the construction department will offer half reduction of wastewater tariff to the MLSS people. Nanning Water Supply Company will allow the MLSS households to pay at 90% of the current water price for the consumption amount of 8 cubic meters or below per month. And the excessive amount shall be paid at the current water price. In Nanning city, the agricultural population whose annual income is below RMB700 can get the governmental subsidies. The rural MLSS population of Nanning amounts to 163675 persons. They enjoy preference in employment training and tax payment but not in water tariff. It is partly because tap water coverage rate is lower in rural area and the farmers needn't pay for water.
12 3. Stakeholders and Public Participation
3.1 Identification of Stakeholders
According to the participatory differences, the stakeholders of the Project can be classified into three categories, respectively: governmental departments, lAs I construction units, and APs. According to the closeness to the Project, the stakeholders can be also classified into the closest stakeholders, closer stakeholders and common stakeholders. According to characteristics, the stakeholders can be classified into two categories: the affected people and the benefited people.
3.1.1 Governmental Department
Nanning Project Management Office of World-Bank Financed Project (NPMO). The NPMO is the co-ordinating agency for project implementation. The NPMO was established in July 1996 under Nanning Municipal Government (NMG). The main responsibilities of NPMO are: (i) negotiation, coordination and liaison with the World Bank officials and consultants in relation to the identification and appraisal of the project; (ii) implementation of the decisions of the NMG and the steering group of Nanning Urban & Rural Comprehensive Environmental Upgrading Project; and (iii) provision of organization, contacting, guidance, coordination and supervision for the preparation and implementation of the project. Nanning Water Resources Bureau. This Project is a public welfare project for the improvement of urban and rural environment. As one of the lAs, Nanning Inland River Administrative Department (NIRAD) is subordinated to Nanning Water Resources Bureau. Nanning Water Resources Bureau is the water administrative department of Nanning Municipal Government and the administrative organ for river channel under the jurisdiction of Nanning city. It takes the responsibilities of the planning and utilization of water resources and its supervision. Since the expected outcomes of the project are standard sewage discharge and upgrading of flood control capacity, so Nanning Water Resources Bureau will be responsible for operational supervision of the project. Environmental Protection Bureaus (EPB) at municipal and county (district) levels. EPBs are responsible for assessing the sewage treatment capacity of the enterprises, supervise over them to pass the environmental assessment and to ensure standard discharge of wastewater. They are also responsible for the collection of discharge fee. EPBs have clearly defined the standards for sewage discharge for enterprises. According to the relevant laws and regulations, the enterprises that have paid the wastewater treatment fee shall be exempted from wastewater discharge fee. Therefore, the identification of wastewater quality of the enterprises by EBPs will further affect the wastewater collection by WWTPs. Thus, this is very important for wastewater component. Nanning Ethnic Affairs Commission and Civil Affairs Bureau. This Project is located in Guangxi Zhuang Autonomous Region. From the population profile in the context, it is
13 known that ethnic minorities will be affected by this Project. The management of ethnic affaires of Nanning city is in the charge of Nanning Ethnic Affairs Commission and the civil affairs bureaus at county and district levels. It can be seen that, from the interviews with the Civil Affairs Commission and bureaus, these organizations are not closely related to this project (details are illustrated in section of ethnic minorities). In addition, this MLSS population covered by the project is subordinated to the Civil Affairs Bureaus. Civil Affairs Bureau will not directly participate in this project. However, in collection of sewage and water tariff from the urban MLSS households, the urban MLSS qualification shall be identified by Civil Affairs Bureau.
3.1.2 lAs I Constructors
This project construction is in the charge of three lAs, who are the closest stakeholders. Nanning Inland River Administrative Department will be the IA for the Fenghuangjiang sUb-component; Nanning Yongjiang Dyke Construction Development Company Ltd. will be IA for Liangqinghe sUb-component (phase-I); Guangxi Lucheng Waterworks Company Ltd. will be the IA for the wastewater component. Nanning Inland River Administrative Department (NIRAD) . NIRAD is the first special agency in Guangxi entrusted with the mission of administering the tributary rivers in urban areas, being responsible for the treatment, management and construction of all tributary rivers of Nanning city. It has now 65 persons, including 31 technical persons, and totally seven sections such as engineering section, comprehensive management section and project management section etc. This Agency has professional capacity to complete Fenghuangjiang Sub-component. Nanning Yongjiang Dyke Construction Development Company Ltd. (NYDCDC). NYDCDC is a solely state-owned enterprise approved by the NMG, with the business scope of water engineering construction, investment on public works, management etc. The company has established the Board of Directors and the operating team according to the modern corporate system. There are totally 55 persons, including 36 technical professionals. This Company has rich experience in the inland river treatment and has the capacity to complete the sUb-component. Guangxi Lucheng Waterworks Company Ltd. (GLWCL). GLWCL was established on September 14, 2006 with a registered capital of RMB 410 million. The company is mainly engaged in: production and marketing of tap water; urban wastewater treatment; construction and operation of water supply and drainage facilities; technical consultancy for electrical automation and information of water supply and information; investment, operation and management of public works etc. It has a total asset of RMB 2.3 billion and a total staff of 1100 persons. Nanning urban and rural wastewater treatment is one of the responsibilities of GLWCL, which has formed a profession team for wastewater treatment. The completion and operation of this subcomponent will upgrade the wastewater treatment capacity of GLWCL and increase its benefits. Constructors, operating units and workers. The component of wastewater treatment in urban and rural areas is a big project. The construction period is 2 years. During the long construction period, the constructors will cause some impacts on the neighboring residents. And, the construction quality will have direct impacts on the effects of the river
14 improvement component and wastewater component. The constructors will participate in the project construction via the lAs. Thus constructors will be regarded as closer stakeholders. As for WWTPs, the project operation is the key pOint, which will influence the outflow water quality of WWTPs. The project operating units maintain the normal operation of WWTPs, and need to collect sewage tariff. Thus, the operating units are taken as the closest stakeholders.
3.1.3 APs of River Improvement Component
Before the project implementation, partial enterprises and residents discharge industrial and domestic wastewater into Fenghuangjiang, Lengtangchong and Liangqing river, causing pollution. The river improvement component is to prevent wastewater from discharging into the rivers and improve the eco-environment. Such will cause the increase of production cost to some enterprises whose short-term benefits will be affected. The additional sewage tariff will add burden to the residents. On both banks of Liangqinghe and Lengtangchong rivers are scattered with farmland and vegetable field irrigated by river water. After the river improvement, the above-mentioned farmland and vegetable land will be requisitioned or the farmland will have taken change. After completion of the component, the unaffected riverain people will be the beneficiaries of the river improvement. The river course will be straightened and expanded, which will upgrade the flood control capacity of the river channel. The construction of supporting facilities will greatly beautify the urban environment and provide good place for amusement and exercising. These people will be benefited from the project.
3.1.4 APs of Wastewater Component
The implementation of wastewater component will greatly improve the environment. However, it will cause loss to some residents and meanwhile bring about benefits to the others. After the completion of WWTPs, those with domestic wastewater collected will pay sewage tariff. And, the households at long distance from the sewage network will probably pay for part of connection fee. These charges will add to the household expenditure. Especially, these charges will be a great burden to the poverty-stricken families. These families belong to affected stakeholders. The construction of pumping station will, to some extent, change the neighboring eco-environment, such as the increasing noise, deteriorated air condition etc. Sewage network construction is located in urban or town crowded with population. Although pipe jacking technology is applied, the construction will still have some impacts on traffic and air environment. The completion of the component will improve urban and town domestic wastewater treatment, upgrade the water environment and purify the drinking water for residents. These people will be benefited stakeholders.
15 3.2 Public Participation Procedure
A public welfare construction project cannot do without public participation and consultation. As for public participation, the most important is to collect information. During the social assessment process, the SA Group members treated and consulted with the APs equally in releasing the public information. The most important stakeholders of this Project are the common people in project areas. As for these common people, fair talk and the right to talk are the premises to acquire project information and trigger their willingness to participate in the Project. Thus, in the process of social survey and data collection, the SA Group stressed the im portance of the project as to the local eco-environment and the sustainable socio-economic development, and encouraged the public to participate in the Project. At the interview with the institutions, the SA Group explained project profile and function.to the heads of grass-roots, consulted with them for necessary proposals or methods for participation from their perspectives. The heads of local governmental department have learned out of their responsibilities much knowledge on how to conduct work. The SA Group actively learned from them and asked them for proposals on how to combine the Project with the local life and exert the project benefits to the utmost. All these proposals offered great help for social assessment of this Project and be written into the relevant chapters of this Report. In the process of PRA approach and individual household interview, the SA Group respected the public of their right to speak, encouraged them to talk and consulted over them of the proposals for project implementation in a fair manner. The APs were willing to tell the SA Group of the actuality of their life and the potential impacts caused by the project implementation. The public and fair consultation enabled the public understand the objectives and potential impacts of the Project, actively took into consideration of their own lives with the Project and gave SA Group a reasonable answer. In the process of individual interview, the SA Group was informed of the participation willingness and possible participation methods of the public. The SA Group distributed 200 questionnaires in the county town of each SUb-component, explaining to the public the environmental protection significance. In the questionnaires, the public participation was specially designed. Of the 1010 copies returned, 11%0) of the public showed that they got the information of VVWTPs construction from this survey. The SA Group consulted with the public in a fair manner and in various ways. The public of the project area have acquired the overall information of the Project. Their partiCipation willingness into the local VVWTP construction was very high. Among the interviewees, 90.4% chose the items of "hope" or "very much hope" to WVVTP construction. Only 1.3% chose "do not hope". The supporters accounted for 91.6%, the opponents accounted for 2.5%. There 88.3% interviewees believed that the Project is very important or important. Only 6.5% thought it unimportant. In the questionnaire survey, 53% survey population are female. 97% of them held the views that the Project was very important or important. 98% chose "very hope" or "hope"
(j) This value is the result of computation after eliminating the deficiency value, being called as "valid percent". All the data in the following text refer to the valid percent.
16 to WWTP construction. In case that the public have different views on project implementation, 74.2% would air their views to governmental department, residents' committee or sub-district office. This indicated their high trust to the government. About 11.1 % public would directly air them views to the constructors and 7.6% would discuss with their neighbors. Due to the PRA approach and discussion between the SA Group members and the project stakeholders, the project stakeholders have acquired the project information and expressed their support for the project construction. However, they are also worrying about that their income would be reduced after land acquisition and house demolition and the living costs would increase due to the increase of water price.
17 4. Analysis of Project Social Impacts
4.1 River Improvement Component
4.1.1 Positive im pacts
River Improvement Component will upgrade Nanning city image, beautify the environment and strengthen the flood control and storage capacity of the rivers. The Component covers three tributary rivers, having great impacts on the riverain residents. Full exertion of these functions will undoubtedly bring welfare to the Nanning citizens. River course improvement will beautify the city image and the environment. As a result, the dramatic change is to boost the local tourism. The flood-in tourists will further increase government incomes. Therefore, the citizens would also benefit more from the government finance. Secondly, the upgraded river course is in itself a public welfare product. As the tributaries of Yongjiang river, the trunk river of Nanning city, Fenghuangjiang, Lengtangchong and Liangqinghe rivers are the good places of amusement for local residents. In the process of field survey, the SA Group found the riverains were playing chess or chatting at the bridge ends or angling in the river. The river course upgrading will better exert its function as public product. Thirdly, the domestic wastewater of the riverain areas is discharged into the three rivers. Therefore, the rivers also function as the collectors of wastewater. In the field survey, the SA Group also found that some enterprises discharge industrial wastewater into the rivers, which adds the river pollution. According to the local people, the rivers have stinking smell and the water body turn dark in winter and spring, the non-rainy seasons. Such has impacts on the normal life of the riverains. Moreover, through these primary tributaries of Yongjiang river, the wastewater finally runs into Yongjiang river. Yongjiang river is the water source for the drinking water of Nanning citizens. The excessive discharge of pollutants to the river will greatly affect the water quality of Yongjiang River, and which will eventually do harm to the drinking water of Nanning city. The river improvement component will substantially change this situation and purify the water sources. As to Liangqinghe and Lengtangchong sub-components, due to the special geographical locations, greater social benefits will be generated in future. Nanning city is in the process of booming urbanization. The two rivers flow through the core area of the planned "Wuxiang New District" of Nanning city, shouldering the functions of wastewater acceptance, flood control and waterlogging control of Wuxiang New District. Thus, implementation of the two sub-components will lay solid foundation for the rapid development of Nanning city. In accordance with Master Plan of Nanning city, the planned population of Wuxiang New District will be one million and who will be benefited from the project construction. Nanning city is one of the areas in China with the richest water resources. Tropical climate brings about plentiful rainfall, especially in September and August of each year.
18 Accordingly, such requires very high flood control capacity of the rivers. During the field survey, Typhoon "Phoenix" caused flood in Liangqinghe river that inundated farmland by the riverside. So, when the local farmers saw the SA Group members, what were they most concerned about was "Will typhoon come again?". Improvement of river course will widen the river surface and strengthen the flood-regulating capacity. Construction of man-made lakes will increase storage capacity of the river course, upgrade the flood control and water logging standard of the core area of Wuxiang New District, as well as reduce the installed capacity of waterlogging control pumping station at the outlets. Such will ensure the built areas covered by the river basins be free from flood damage. and will also greatly improve flood control capacity of the rivers and reduce the flood damage and loss.
4.1.2 Negative Impacts
The riverain areas are scattered with farmland and vegetable land. that are irrigated with river water by the . local farmers. After improving the river course, the vegetable fields and farmland will shrink or disappear, causing economic losses to the local farmers. This Report holds a view that, losses incurred to local farmers would be avoidable in the process of urbanization, however, such is not the output of the project construction. As a part of the urbanization, project implementation should itself minimize the losses brought to the farmers. As for the remained farmland and vegetable field, irrigation is still the major concern of their owners. The river improvement component will break the existing irrigation mode of the farmers, which may add to the farming cost of the local farmers and reduce the incomes from the land. The irrigation system of the local farmland was constructed on the basis of natural river course. The pumping stations for irrigation were built at the river banks. However, project construction will remove these pumping stations. The relocation of pumping station means the relocation of farmland irrigation system. This will also add to the agricultural production cost and bring about negative impacts to the farmers. River improvement component will also demolish houses riverain areas. House demolition will be compensated according to the compensation policies. However, the demolition of "temple of the god of earth" will somewhat affect the belief of local villagers. Although "temple of the god of earth" does not occupy much land, it is the place where local villagers worship their ancestors. It was in Festival of the Dead Spirits when field survey was done, the villagers were burning spirit money and incense at "temple of the god of earth". Owing to historical reasons, some temples were built at the river sides. These temples will have impacts on river course improvement, therefore, the subcomponents will have negative impacts on the religionous belief of the local villagers.
4.2 Wastewater Component
4.2.1 Positive Impacts
Guided by the concept of "man and nature harmonious co-development", NMG has
19 issued a number of measures to improve the eco-environment of Nanning city. Wastewater component is one of them. According to the Circular of the State Council on Strengthening the Management of Water Supply, Water Saving and Prevention and Control of Water Pollution in Urban Areas, Nanning will reach 70% of wastewater treatment rate by 2010. However, the existing wastewater treatment rate is 54.7% in Nanning city while the treatment rate in counties is zero. The implementation of Jiangnan WWTP SUb-component and wastewater SUb-components of other counties will improve wastewater treatment capacity of Nanning city and the counties under its jurisdiction and be helpful for fulfillment of the above-mentioned goal. The rivers of Nanning city share a common character: the double functions as the acceptors of wastewater and the sources of drinking water. The domestic wastewater and the treated industrial wastewater are discharged into Yongjiang from which the water supply company intakes wate. Construction of WWTP will upgrade urban wastewater treatment capacity, reduce the pollution of domestic and industrial wastewater to the water body hence to reduce the treatment cost of the tap water and ensure healthy drinking water for the citizens. Domestic wastewater treatment in the counties under the jurisdiction of Nanning city mainly adopts two or three level septiC tanks for sedimentation and biochemical treatment. In rainy seasons, the wastewater in the septiC tanks is washed away. The septic tank fails to work and cause overflow of wastewater that pollutes the clean water and caused diseases. Despite that no serious incidences of waterborne or water-related diseases have occurred in recent years in Nanning city (Details are shown in the following table). But incidences of waterborne diseases occasionally occurred in other places, especially in schools, factories and social institutions with dense population and self-supply water resources. Such has close relation to the poor treatment of wastewater. Once these water-borne diseases break out, people's life and work will be seriously affected and extra expenditure will be paid to medical treatment.
Table 4-1: Summary of Water-borne Diseases in Nanning City in 2007 (Unit:1/100thous.) Incidence of cholera typhoid bacillary dysentery hepatitis A Leptospirosis disease Jiangnan District 0.00 1.64 54.97 30.41 0.23 Xixiangtang District 0.00 0.26 55.52 1.66 0.00 (Xiangsihu New District) Liangqing District 0.00 0.45 29.26 1.80 0.45 (Wuxlang New District) Wuming County 0.00 0.15 34.06 2.54 0.00 Shang lin County 0.00 0.00 8.71 2.07 0.00 Mashan County 0.00 0.19 26.14 0.19 0.00 Hengxian 0.00 1.13 13.27 5.12 0.00 county Binyang County 0.00 0.10 29.49 2.15 0.01 Sources: Nanning Public Health Bureau.
20 Wastewater component will reduce the contacting rate of dirty and clean water, ensure the healthy drinking water for the public, as well ase improve their health and reduce the indecencies of water-borne diseases. After the completion, the WWTPs can accomondate partial industrial wastewater to be treated along with domestic water. The treated industrial wastewater reaching discharging standard will be firstly discharged into sewage network and then diverted into WWTP for further treatment. In this way, the wastewater treatment cost of individual enterprise will be reduced, which will also help release the burden of the enterprises and increase their benefits. In addition, these enterprises need not pay additional waste discharge fees to environmental department. The basic reason is that mass treatment cost is lower than individual treatment cost. As for those enterprises built with wastewater treatment facilities, cost re-computation is necessary to determine which way is more reasonable. As a result, some facilities will be probably laid aside. To the new enterprises, there is no necessity to invest much funds in wastewater treatment facilities because they can use the such funds for expanded reproduction. The treated domestic and industrial wastewater will be discharged after reaching the standard. Such will reduce the pollution to the local rivers and improve the water environment. The local residents will no longer complain about the stinking smell of the river at low-water seasons. In addition, the treated wastewater can serve for urban landscape. The wastewater component will offer more jobs for local residents. The proposed construction period of wastewater component is from April 2009 to March 2011. During the two years construction, the component will offer job opportunities for local residents. The residents participating in WWTP construction will earn more incomes. After completion, the daily operation needs professional labors, which also offer jobs for local residents. Comprehensively, the two components of NUEP will bring about more benefits to the local people after they put into operation.
4.2.2 Negative Impacts
As for the project counties, the most dramatiC change brought by wastewater component and operation is that the wastewater treatment mode of the local residents has been changed. Implementation of wastewater component has changed the wastewater discharging mode of the local residents and some enterprises (including hotels and restaurants). Instead of discharging the wastewater directly into the septic tanks, they will discharge wastewater into sewage network. The failure of sewage network will have impacts on wastewater discharge of the local residents and the relevant enterprises, causing inconvenience to their daily life and having negative impacts on normal operation of business. As for enterprises, those enterprises at long distance from sewer trunk have lower willingness to connect to the sewage network due to comparatively higher connection fees. They hold the view that they discharge wastewater at the request of
21 environmental protection standard, therefore, they have low willingness to connect the sewage network on account of production cost. As for residents, they have to pay for wastewater treatment to maintain the normal operation of wastewater treatment facilities. According to the above analysis of socio-economic situation, the per-capita average disposable income of Nanning is not high. As to farmers, their annual per-capita net income is even as low as RMB 3400 or below. Also, the additional wastewater treatment fee is a big burden to a low-income family. In Nanning the urban poverty line is RMB 180 - 220 I month whilst rural poverty line is only RMB 700 I year. The local social subsidiaries are relatively low. In poverty families, the wastewater treatment fee accounts for higher portion in family expenditure than other common families. The exemption policies enjoyed by the urban citizen are not applicable to agricultural population. So, the implementation of wastewater component may probably make the poor become even poorer. In all, the analysis of positive and negative social impacts caused by the Project is very necessary for the successful implementation of the Project. The final goal of social impacts analysis is to ensure the exertion of positive impacts and avoid negative impacts, optimize the project design and ensure the long-lasting benefits of the Project.
22 5. Affordability and Paying Willingness of APs
It is learned from the above analysis that the critical social issue of wastewater component ® is the sewage network connection fee and wastewater tariff on the project. This Chapter focuses on the analysis of these two critical social issues. More discussions will be conducted on three aspects of these critical social affaires: (1) paying willingness of the public; (2) the affordability; (3) wastewater tariff collection. Logically, it is to make clear the paying willingness of the public, especially the wastewater tariff; to choose a proper collection method and analyze the afford ability of the public. The paying willingness can be computed by probability model of paying. The judgment of the affordability is based on the proportion of water tariff in family total incomes. According to international standard, SA Group defined the affordability line of the urban residents to be 3%.
5.1 Paying Willingness
Paying willingness refers to a subjective state of mind of the APs on whether they are willing to pay the charges caused by the project implementation. In terms of this Project, the charges include two parts: connection fee and wastewater tariff. The paying willingness for connection fee and wastewater tariff will be stated as follows. Owing to the fact that the sewage network is connected with the existing network of the counties, so only part of the public have to pay connection fee. One role of social assessment is to prevent potential social risk. Therefore, the SA Group still carefully calculated the paying willingness for connection fee as reference for lAs. The choice of the APs on paying the connection fee was indicated from the statistical data of this Questionnaire Survey. The statistical data found that 63.3% interviewees held the view that the government should pay the connection fee; 22.3% interviewees thought of self-payment; 14.4% households needn't pay connection fee for they have already installed. Most people hoped the government pay connection fee showing their paying unwillingness. To those households without connection to sewage network, it is impossible that the government pays all the charges as they have expected. Owing to limited amount of loans and the restriction of existing network, the residents should pay part of connection fee. Taking into account of public partiCipation, paying part of connection fee by the residents will help to trigger initiativeness of the residents in protection of network facilities and make them partiCipate in the project.
According to the IA and Design Unit, the land acquisition for factory site of Jiangnan VVWTP (phase-II) has been completed in the phase-I. So, phase-II will not have land acquisition and pipeline construction. In addition, wastewater treatment fee has been collected in the service area., and so phase-II component will not involve additional fee for wastewater treatment. Thus, this Chapter will analyze the wastewater treatment SUb-components (phase-I) in the five counties.
23 5.1.1 Paying willingness for connection fee
The affected people in the five project area are willing to pay a lump-sum amount of RMBS81.22 for connection fee. The standard deviation was 766.44, the maximum value was RMBS346 and the minimum value was RMBS4. This indicates that the paying willingness of the local public varies greatly. According to analytical results of the context, the SA Group defined RMB600 and
RMBSOO as the critical pOints ® based on which the paying willingness is divided into high, medium and low willingness. Accordingly, the above analysis can be summed up as follows:
Table 5-1 Statistic Table of Paying Willingness of APs with Different Background High Medium Low Division of Paying willingness paying willingness Paying wiiiingness background (Above RMB600) (RMB 501-600) (Below RMB500) Project area Wuming county, Shanglin county, Hexian Binyang County Mashan county county Educational College and Higher Senior or junior middle Primary school or Level school lower Family Annual 20001-30000, S001-10000 Less than SOOO, Income (RMB) Above 30000 10001-20000 Enjoyment of Yes No governmental subsidiaries Occupation Head of enterprise, Head of public Housewife, the technician and institutions, unemployed assistant. head of office workers, business or service business/service worker, industry. operators retirees of production transportation equipment, Distance to Far, very far Very near, near sewage discharge outlet
As for another type of wastewater dischargers -- big shops, hotels and restaurants, they produce wastewater as the common households. What makes it different is that such business dischargers use water for business purpose, so they produce much greater amount of wastewater. The major problem is the big water consumption. But to wastewater component, it does not cause big impacts. At interviews, the shop owners showed their willingness to connect with sewage network and try their best to protect the
@ The reasons for the differences in paying willingness of the APs are shown in Appendix 2: Affordability and Paying Willingness of APs.
24 environment. At the counties, shop owners held common view that the connection fee of about RMB2000 is acceptable. In case of higher fee. they need the help from the government. The enterprises without wastewater treatment facilities should pay certain amount of wastewater discharge fee each year. The wastewater produced by such enterprises will be discharged into nearby rivers of the town after simple treatment such as sedimentation etc. County towns are the places of dense population. Therefore. there are only a small number of such enterprises, which mainly include agricultural products processing (e.g. sugar refinery. starch factory) and food production. These enterprises chose "Willing" or "Quite willing" for RMB 5000 connection fee depending on their distance from sewage network. To the enterprises and shop owners with wastewater treated in WWTPs, the most important thing is that under the premise of paying willingness, they should make the connection facilities to serve for their wastewater discharge and should fully discharge the wastewater into sewage network as it is supposed to be.
5.1.2 Paying willingness for wastewater tariff
The computation results from 938 copies of valid samples show that the average value of public paying willingness for wastewater tariff is RMB 44.86 monthly. of which. the standard deviation is RMB44.19, the maximum value is RMB245.55 and the minimum value is RMB 2.45. According to current water price of Nanning city, computed as per RMBO.8/ton for domestic wastewater tariff, the average water consumption of per household will be 56.075 tons per month. The Survey found that the average water consumption of per household was 18.44 tons per month in project area. The wastewater tariff willingly paid by the residents, according to the collected information, has by far exceeded the average water consumption per capita, approximately 3.04 times. Such indicated that the people of the project areas have very high willingness in paying the wastewater treatment fee.
Table 5-2 Summary of Willingness in Paying Wastewater Tariff in Project Areas Background High Intermediate Low Paying willingness Paying willingness Paying willingness (Above RMB47.36) 42.37 to -47.35 (Below RMB42.36) yuan Project area Mashan Wuming. Hexian, Bingyang Shang lin Educational Level College and Higher High school Junior middle school, primary school or lower Family Annual Above 30000 5001-10000, Income (RMB) 10001-20000, 20001-30000, less
25 than 5000 Enjoyment of Yes No governmental subsidiaries Occupation Head of enterprise, Head of business Head of public techinician and service, institutions, assistant, operators service worder office workers, the of production unemployed, retirees transportation and housewife equipment, students Distance to Far, very far Very near, near discharge outlet
As for the enterprises and shop owners with high water consumption, their paying willingness varies greatly depending on individual water consumption. The higher the water consumption is, the more impacts of wastewater treatment fee on water price and the lower willingness in paying would be. Owing to the rich water resources in Nanning, the enterprises and shops having low requirement on water quality would use river or lake water for business. The numerous natural drainage systems are also convenient for enterprises and shops to discharge wastewater. According to the EPBs, the provisions on industrial wastewater treatment were issued much early than that on domestic wastewater treatment, therefore the enterprises at the request have built up their own wastewater treatment facilities and discharged the wastewater after reaching the standard. So, there is no need for further treatment in WNTPs. However, the local business and shops keeping the old discharging habit felt hard to accept the cost-added wastewater treatment. At interviews, such business and shop owners stated all kind of reasons and refused to connect with sewage network. Their excuses are: they did not cause any pollution and the recycled water needn't discharge etc. However, the significance of this Project lies in: trying to minimize the wastewater discharge that causes pollution to water quality. Therefore, more efforts should be made to well conduct the connection work of the enterprises and shops in the project areas.
5.2 Methods for Collection of Fees
An appropriate method for collecting wastewater tariff is of great significance as to the collection work upon operation of the facilities. How to collect wastewater tariff will determine the computation of the affordability of local people hereinafter. Therefore, before analyzing the affordability, we should firstly analyze how to collect the wastewater tariff. Under the existing system, three methods were given for wastewater tariff collection: CDbased on actual water consumption; ® based on family members; ® share the expenses by all households. In questionnaire survey, the SA Group offered the three
26 choices to the APs to make sure of their answers. 953 persons made the choices. Most people chose the first way, accounting for 75.1 % of the valid samples. The choice for second or the third method accounted respectively for 10.1% and 7.7%. Details are shown in the following Chart.
What is the reasonable way fur conection of wastewater tariff 7
• A. 1>'" f\miIT mON'u • "'~ 'PU COlUlI,Iltql'lioa DlTo'b..hu.d • ,Ho M. DOl..... • MIIII'Ing
In combination with the public willingness and existing wastewater tariff collection method, it is feasible and reasonable to adopt the first method. Similarly, the methods for collection of connection fee should be more cautious. Such kind of fee is a lump-sum amount payable at one time but being benefited for years. As to the local backward economy, excessive connection fee would be a burden to a family. According to the lAs, during construction of wastewater pipelines, the lAs would connect or intercept all the wastewater from the households, institutions and enterprises along the pipelines. The costs thereof will be fully covered by the lAs. However, due to different distances or existing conditions, those being unable intercepted into the pipelines or any new residential areas and enterprises shall connect their wastewater to the pipelines at their own costs upon approval by the relevant departments.
5.3 Affordability
According to the current water tariff system of Nanning city, RMB 0.5/t of wastewater treatment fee will be collected along with the water price. It is anticipated that such 3 fee will be increased to RMB 0.8/ m • The indices for computation of residents' affordability of Nanning city are from this survey questionnaire, institutional interviews and statistical year-books. The results are as the follows:
27 Table 5-3 Statistical Table for the Affordability of Common Urban Residents in Project Area
-- Towners' Towners' per Proportion Annual per-capita household Monthly water Annual water Water Average of water Project expenses average average consumption consumption price with wastewater members of expenses in Area on water annual annual (ton) (ton) tariff (RMBrr) household family annual (RMB) income income income (%) (RMB) (RMB) ------ Wuming 12.39 148.68 2.05 304.794 8798 4.25 37391.5 0.82 Bingyang 16.52 198.24 2.2 436.128 8851 4.57 40449.07 0.11 Hengxian 20.22 242.64 2.2 533.808 8635 4.6 39721 1.34 i county Shanglin 23.7 284.4 1.86 528.984 7405 4.53 33544.65 1.58 ------ Mashan 18.44 221.28 2.6 575.328 7120 4.52 32182.4 1.79 ----
28 Such situation is slightly different as to the urban MLSS population. According to the existing subsidiary policy of Nanning city, the minimum standard is RMB 180-260 per capita each month, based on which, the annual income of urban MLSS is calculated. Water price is calculated according to preferential policies for urban MLSS, following the principle of half reduction for wastewater treatment fee and 90% of water tariff. Considering the low water consumption of the MLSS population, the SA Group adopted 6 ton/month water consumption, amount lower than common household, for calculation. The final water expenses proportions are shown as follows:
29 Table 5-4: Statistical Table for the Affordability of Urban MLSS Population in Project Area
Proportion Urban MLSS' Urban MLSS' of water Annual Monthly water per-capita Average per household expenses Annual Payable water expenses Project Area consumption average members of average in family consumption price (RMBIt) on water (ton) annual income household annual income annual (RMB) (RMB) (RMB) income (%) Wuming 6.39 76.68 1.525 116.937 2400 4.25 10200 1.15 Bingyang 10.52 126.24 1.66 209.5584 2640 4.57 12064.8 1.74 Hengxian 14.22 170.64 1.66 283.2624 2640 4.6 12144 2.33 county I Shanglin 17.7 212.4 1.354 287.5896 2160 4.53 9784.8 2.94 Mashan 12.44 149.28 2.02 301.5456 2160 4.52 9763.2 3.0
30 It is shown from the calculation results that water expenses proportion in family annual income is lower than the measurement line of 3% in all project counties. However, comparing with the common residents, the urban MLSS population has obviously lower affordability. And people's affordability in Shanglin and Mashan are much lower than that in other project areas. As for agricultural population in towns, they have equal family incomes with the urban residents. Therefore, their affordability can be inferred from that of common urban household. Taking all factors of the project areas of the public paying willingness, affordability and wastewater collection methods, the SA Group cited that in collection of wastewater tariff, different methods should be adopted according to different groups of people in the project areas. Although the wastewater tariff proposed in Project Proposal is affordable by the majority people who also have high paying willingness. However, during collection, special considerations should be also given to different groups of people. Following the design conception of "cost compensation, marginal profit", it can be concluded that, RMB 0.8 rr of wastewater treatment tariff is feasible and affordable by the majority people of the project areas. However, during collecting wastewater tariff, special considerations should be given to the MLSS population in the project areas of Mashan and Shang lin counties who should be given special favors such as subsidiary water price, exemption or reduction.
31 s. Project and Ethnic Minorities
The objectives of compiling this part are to promote the public participation of the ethnic minorities, identify the inter-related impacts between the ethnic minorities and the project, avoid the potential social risks brought to the ethnic minorities by the project, clarify the necessity for preparing an alone IPP, as well as enable the ethnic minorities to share more benefits brought by the project.
6.1. Profile of the Ethnic Minorities in Project Areas
Nanning is the capital city of Guangxi Zhuang Autonomous Region and a place with the most concentrated Zhuang minority. The population of Nanning city mainly consists of Zhuang, Han, Yao, Mulam, Miao, Dong and Hui peoples, other ethnic minorities such as Maonan, Jing, Yi, Shui and Gelao etc. also reside in Nanning. Among all these peoples, Zhuang is the largest followed by Han. The proportion of minority population of Nanning city ranks the first among the five capital cities of autonomous regions in China. The general characteristics of minority distribution of Nanning city is featured by Zhuang followed by Yao. The proportions of other ethnic minorities are comparatively less. In this regard, Zhuang accounts for 55.9%, Han for 42.2%, Yao for 1.5%, Mulan for 0.066%, Miao for 0.066%, Dong for 0.060% and Hui for 0.057%. Other minorities such as Maonan, Jing, Yi, Shui and Gelao etc. are also scattered in the city but few in county towns. So these five minorities are not affected by the Project. Details of minority distribution of the project areas are shown in Table 6-1. It must be pointed out that in the service area of this Project, majority are Han and Zhuang people. Other ethnic groups settled down the service area mainly in forms of marriage and employment after graduation from universities.
32 Table 6-1 Distribution of Ethnic Minorities in Project Area I County of Nanning City (2006)
Whole Wuming Binyang Hengxian Shanglin Mashan Ethnic groups Jiangnan District Xixiangtang District Liangqing District J City County County county County County year end total population 6718928 418195 772286 215809 213687 275647 320533 124232 133835
(nos) . Percentage of minority 57.80 50.45 41.41 92.42 87.25 19.58 38.13 85.21 83.38 population (%) ~~- -- Zhuang (%) 55.9 49.33 39.06 91.69 87.04 19.14 37.99 78.66 74.995 --- Yao 1.5% 1109 9517 1388 1109 0 852 30995 41576 t--~--- ~-- -- --- Miao 0.066%
,---~- Mulam 0.066% -- -- -- - ---- Dong 0.066% 280 !-- ~-- ~-- -- - Hui 0.057% -- Notes: (i) Source: Statistical Yearbook of Nanning City 2007, materials provided by Nanning Civil Affairs Commission; (ii) Where without figures lacks of relevant statistical record due to few people and scattered distribution.
33 The total population benefited form the Project is 1.1471 million. According to the distribution of ethnic minority in the project areas, it is calculated that .06988 million ethnic minority benefited from the Project, accounting for 61%. It is obvious that the ethnic minorities constitute the vast majority of the beneficiaries.
34 Table 6-2 Distribution of Ethnic Minorities in Project Area / County (by the end of 2006)
Whether Benefited Minority Whether in Components Project area national-level Service town/street Population (10 population minority poverty county thous.) (1 Othous.) community
~------
Fenghuangjiang Xiangsihu Drainage area No 3.72 1.54 sub-com ponent New District population. v: (Zhuang)
- --
Phase-I of Liangqinghe Planned population Wuxiang and Lengtangchong No of core Wuxiang 24 22.18 Yes (Zhuang) New District su-component New District r-=:------ -- - Phase-II of Jiangnan Jiangnan District No 41.8 21.09 Yes (Zhuang) _\/IJI/IITP sUb-component -- --- I Chengxiang Town Wuming WWTP and Overseas Wuming County No 12.5 10.91 I sub-component, Phase-I Chinese residential Yes (Zhuang) area ,c -- -- -- --- Binyang WWTP sub-component, Phase - Binyang County No LuxuTown 13.03 2.55 Yes(Zhuang) J I -- 1-- Hengxian WWTP Hengxian sub-component, Phase - No Hengzhou Town 10.75 4.1 Yes (Zhuang) county I ~------Shang lin WWTP, Phase Shang lin County No DafengTown 4.62 3.94 Yes (Zhuang) -I r--c:- ------ --- Mashan WWTP, Phase- Mashan County Yes Baishan Town 4.29 3.58 Yes (Zhuang) I 1 -- Grand total 114.71 69.88
35 According to OP 4.10, "the term 'Indigenous Peoples' is used in a generic sense to refer to a distinct, vulnerable, social and cultural group@, having somehow the following characteristics. Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; ® Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; ® Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; @ An indigenous language, often different from the official language of the country or region. Based on the above characteristics, the minority conditions of each SUb-component will be identified. Among all the SUb-components of the project, only Zhuang minority has formed its own community with the above-mentioned characters. Other minorities have highly assimilated to the local mainstream peoples, mostly due to work or marriage. The ethnic awareness of all minorities is not strong. No ethnic boundaries have been formed during the daily intercourse, nor any ethnic separation has been formed in marriage. These minority people live in the county town with other ethnic groups without any geographically distinct habitats or ancestral territories. There are no differences between the dominant society and them with regard to the economy, society and political institutions. All the ethnic groups retain their own customary culture and undergo inter-action and integration with each other during the daily social activities. With regard to the ethnic combination, one of the main features is the use of common language - Chinese as the official language. All the local Zhuang, Yao, Miao and Mulan peoples use Chinese as the written language. The second major characteristic is that all the ethnic peoples will celebrate the same festivals, such as the Spring Festival, festival of dead sprits etc. The third major characteristic is that, in the project areas of all SUb-components, all the peoples are in good and close relationship with each other without deliberately showing off their ethnic identity. Marriage between the people of different ethnic groups is not uncommon.
6.2 Participation of Ethnic Minorities
The local ethnic minorities conduct actively political participation. The rates of cadres of ethnic minorities are correspondent to the rates of populations. However in some project areas, the population of ethnic minorities is higher than that of Han people. Due to this characteristic and considering such objective factor as surveying time, the scheme for minority participation was designed via Participatory Rural Appraisal (PRA). The SA Group adopted discussion meetings with the governmental institutions, enterprises and shop owners as well as individual interviews and large-scale
. @ This policy has no threshold because the population of the minority group may decrease and they
may be more fragile.
36 questionnaire survey to ensure the participation of the stakeholders of all ethnic minorities in project decision. By means of the above-mentioned methods, the SA Group has conducted social assessment involving the minority participation in 8 sup-component areas. Details are referred to appendix. The SA Group conducted indefinitely the free prior informed consultation among the affected ethnic groups. Their work included CD training the survoyers; ® collecting data on project communities; @ holding discussion meetings; ® individual interviews; @ making summary of the survey; @ information feedback. Details of free prior informed consultation are shown as follows:
Table 6-3 Free Prior Informed Consultation of Minority Groups -~"'~i!;l{~.':o.;""j'.~i."-'''·.'~<-';'~'~j'••..,...... CD Share of project information Residents of ® Analysis on project requirements project area 2 discussion @Assessment on project design (including poverty River meetings and implementation households, ethnic improvement Interviews ® Project impacts analysis minorities, women component PRA @ Analysis of existing problems of and migrants), lAs Approach the Project and SA Group @ Proposing expectation and members i suggestion Affected people CD Share of project information 5 discussion (including, ® Analysis on project requirements meetings enterprises, shop @Assessment on project design Close owners, poverty and implementation interviews households, ethnic ® Project impacts analysis Questionnaire minorities, women @ Analysis of existing problems of . survey and migrants), lAs. I' the Project , Invo vlng and SA Group 1 @ Proposing expectation and 1061 persons members . I suggestion Wastewater CD Share of project information component ® Analysis on project requirements @Assessment on project design 8 discussion and implementation Governmental meetings ® Project impacts analysis cadres and lAs of Interviews @ Analysis of existing problems of project areas, SA Collection of the Project Group members documentary @ Proposing expectation and data suggestion
I (j) Showing paying willingness and I affordability
According to the free prior informed consultation with the minority communities, the interviewees, including the common people and cadres, expressed their most welcome 00
37 the river improvement component. The poor water environment of the rivers has already affected their life. The local ethnic minorities showed strong will for river improvement, thus the river improvement component has gained extensive support from the minority communities. The ethnic participants of questionnaire survey total 589 persons, among which 571 persons supported the component construction with supporting rate of 97%. Especially, women's supporting rate was 98%.
6.3 Analysis of Impacts on Ethnic Minorities Caused by Project
The SA Group has fully acquired the wills of the ethnic minorities and analyzed the social impacts of the Project on the ethnic minorities. In sum, the impacts include two aspects. Positive Impacts. The river improvement component will the integrate environment of the project area, ensure clean drinking water for human and animals, prevent wastewater from discharging into farmland. Such will be helpful for reducing the incidence of diseases in project area hence to strengthen the health of the minorities. In addition, the component will offer amusement places where the minorities can play and enjoy themselves hence to improve their living quality. The implementation of the components will also help the minorities to set up the subjective awareness of environmental protection, forming good sanitary habits. Finally, the project implementation will facilitate the local economic development, especially tourism and fishery. After the project completion, the river surface will be widen, which upgrades the storage and flood control capacity of the river course, thus to reduce the loss to the minorities caused by flood. Wastewater components will (i) improve the urban sewer drains of the residential areas of ethnic minorities of the project areas and upgrade the environment of the project towns; Oi) ensure standard discharge of domestic and industrial wastewater, purify the water body and reduce the negative impacts to the ethnic groups; (iii) improve the drinking water quality of the minorities at the lower reaches of the rivers; (iv) reduce the incidence of waterborne diseases. In addition, the project construction and operation after completion will offer non-agricultural employments to the minorities and increase their family incomes. Negative Impacts. The river improvement component will spoil the eXisting irrigation mode of ethnic riverains and spoil, to some extent, the completeness of farmland irrigation. Such will cause economic loss to the minorities depending on farmland and vegetable field for living. Besides, the component will cover the demolition of partial factory workshop and houses of the minorities along the river banks. Wastewater component will cause economic loss to farmers due to land acquisition and change of their life mode to non-agricultural one. Moreover, the component will also have house demolition of some minorities. After the component completion, the minorities need to pay small sum for wastewater treatment (RMBO.8/t), which will add small burden to family expenses. Particularly, to the MLSS minorities in Mashan and Shang lin counties, water tariff will add burden to their lives.
38 Table 6-4: Summary of Impacts of Land Acquisition and House Demolition on the Ethnic Minorities
0.25 7.92 6 / / 2.90% 1 1.90% lcompensation and ... -,331 I 315 :~100' Wastewater t ,1-' Iproviding with components 176 ! 195 195 100. / 6.3 / / 1 I / 0.80% 0.13% information and training; ~mJ I I I l insurance for the displaced fanners; resettlement with reserve land.
offer land acquisition compensation,
resettlement subsidiaries;
.compensation in forms of Phase-I of Liangqinghei
River and 21 5087 5087 788 100% 05 50 88 29 6 19 26 14.60% 3.10% land develop Lengtangchong 17251176.11 0. 1 .361 1 . 1 eco-farming; offer jobs, freel sub-component I I I I I employment training and
consultation; offer SOCial insuranoe
for displaced farmers
39 To ensure the ethnic groups benefit from the Project and mitigate the negative impacts, the project design will ensure: (i) The affected minorities will get social and economic benefits conformable to their cultural customs; (ii) After confirming the negative impacts on the minorities, the Project will adopt measures to avoid, reduce and mitigate the negative impacts to minimum. Or, the Project will offer compensation for these negative impacts.
40 Table 6-5: Project Design Integrated with Minority Factors Percentage of Factors integrated with minority Components benefited minorities Social impacts on ethnic minorities (%) development River Improvement Component Xixiangtang District: 41.41 --, Li
1. The project is located in Nanning city, the capital of Guangxi Zhuang Autonomous Region. The project design shall take into account of the "Right to Know" of the minorities. 2. The affected minority is mostly of Zhuang community. The project implementation will not have impacts on ethnic customs and culture. 3. The negative impacts caused by LA on individual resettlers. This project will not have impacts on the living of the minorities. i 4. River i improvement component will, to some extent, spoil the 41 com pleteness of farmland irrigation system, thus may cause econom ic loss to some minorities depending on farm land and vegetable land. 1. To meet the requirement of the minorities, free prior informed consultation was conducted in project areas. This component has gained extensive supports from majority minorities. 2. The ethnic minorities hope to change local environmental condition. The goal of this component is to improve local environment. 3. The resettlement plan has been compiled and the measures have taken to avoid various social risks. • 4. The project design has taken into account the sites for water pumping hence to avoid the impacts on farmland irrigation system of the minorities. Wastewater component Jiangnan District: 50.45; Wuming county: 87.25 Binyang County: 19.58; Hexian county: 38.13; Dang'in County: 85.21;
42 1. The project covers Nanning city, the capital of Guangxi Zhuang Autonomous Region, and the counties under its jurisdiction. The project design shall take into account of the "Right to Know" of the minorities. 2. The affected minority is mostly of Zhuang community. The project implementation will not have impacts on ethnic customs and culture. 3. The negative impacts are mostly from ethnic minorities and LA. This project will not have impacts on the living of the minorities. , 4. The MlSS i population in urban area, Shanglin and Mashan showed high paying willingne SSt but their afford ability is very low. 1. To meet the requirement of the minorities, free prior informed consultation was conducted in project areas. This component has gained extensive supports from majority minorities. 2. The ethnic minorities hope to change local environmental condition. The goal of this component is to improve local environment. 3. The RAP has been compiled and the measures have taken to avoid various social risks.
43 4. The project design has taken into consideration of constituting relevant water tariff exemption policies and makes the vulnerable groups benefit from the welfare brought by the Project.
44 6.4. Conclusion
Among the benefited people, the ethnic minorities constitute the vast majorities of the direct beneficiaries. Through Fr~e Prior Informed Consultation with the affected minority communities, the project construction has gained extensive supports from the minority communities. And, the project will ensure: (i) The affected minorities will get social and economic benefits conformable to their cultural customs; (ii) After confirming the negative impacts on the minorities, the Project will adopt measures to avoid, reduce and mitigate the negative impacts to minimum. Or, the Project will offer compensation for these negative impacts. The project design scheme has incorporated minority development into the general design scheme of the project. Therefore, there is no necessity to develop an alone IPP.
45 7. Project Risks and Policy Suggestions
With the reasonable preliminary feasibility study, deep feasibility study and project design, plus the relevant environmental assessment reports, this project will play an active role in the improvement of urban and rural environment of Nanning city. However, a new project construction and successful implementation will bring about changes to the local society along with certain potential social risks. Improper risk disposal may cause adverse impacts on the exertion of some functions of the Project.
7.1 Project Risks
7.1.1 River Improvement Component CDRisk caused by the residents due to the lack of environmental consciousness: Owing to weak environmental consciousness, the riverain enterprises and residents will still discharge wastewater into the rivers. Such will probably weaken the environmental function of the river improvement component. ®Risk caused by the change of farmland irrigative modes: Inland river treatment shall take into consideration of the demands of local residents on farmland irrigation. Otherwise, after project completion, residents' water diversion for irrigation may re-destruct the river dykes, which will have adverse impacts on the long-lasting project benefits. ®Risk caused by the demolition of "temple of the god of earth": During the construction, the Project may cause some impacts on the riverside "temple of the god of earth", a worship place for belief. "Temple of the god of earth" is very sensitive to the local villagers. Any improper handling of demolition will hinder the project progress. @Risk caused by the habits of the residents: After the river improvement components completed, the Nanning citizens will have a good place for amusement. It can be foreseen that the improved water quality will attract some citizens to swim in the clean river. Any carelessness will lead to drowning accidents, even the loss of life. Such will cause a good deal of comments of the public on the Project. @Risk caused by land acquisition and house demolition: If resettlement of Inland river improvement component is not handled properly, the local resettlers will cause disturbance of project progress. 7.1.2 Wastewater Component Wastewater component covers a large population, thus they have more risks than that of inland river improvement component. They are: CDRisk caused by the low affordability of the MLSS population (especially in the project area of Mashan and Shanglin): The public of all project areas have paying willingness, but their affordability varies greatly in different project area. Especially, the public in Mashan and Shang lin project areas have lower affordability than that of other project areas. ®Risk caused by low or unwillingness of enterprises to connect their wastewater with the WWTPs: The design concept of wastewater components is the large
46 scale wastewater treatment is beneficial to reduce unit treatment fee of wastewater. Therefore, the wastewater diverted to the WWTPs should include domestic and industrial wastewater. The supportive rate of the local residents to this Project was very high. But the enterprises were unwilling to connect to sewage network on account of production cost. @Risk caused by failure in collecting partial wastewater tariff: According to feasibility study and the local living habits, it is feasible for the Project to collect wastewater treatment fee along with the water price. However, the questionnaire survey indicated that 9.9% (amount to 128 persons) residents chose well water or pond water as their living water sources. In this case, domestic wastewater treatment fee of these residents will not the counted in due to failure in collection. Such will. to some extent, add to the operation cost to WWTPs and bring risk to operating loss of the WWTPs. @Risk caused by land acquisition and house demolition: The construction of WWTPs needs to demolish the houses and acquire some land. With due consideration of their wills and demand and reasonable compensation for them, they may obstruct the project, or may damage the wastewater treatment facilities after project completion. @Risks caused by the damage of sewage pipelines: The damage of sewage pipeline after project completion will cause impacts on the normal living of the residents, especially on the business-oriented hotels and restaurants. Any failure in establishing the emergency response mechanism for pipeline repair will make the displaced people refuse to pay wastewater treatment fee. Such will influence the normal operation of wastewater treatment facilities. @Risk caused by wastewater discharge: The effluents of WWTPs of this Project are directly connected to Yongjiang river and its tributary rivers. The problem is, Yongjiang river is the drinking water intake sources of Nanning city. Any failure in standard discharge of wastewater in WWTPs will cause secondary pollution. Such will lead to opposition of the residents at the lower reaches hence to cause adverse impacts to the project implementation.
7.2 Policy Suggestions
The risks caused by the APs can be avoided by two approaches: (i) Optimize project design without additional volume of works; (ii) Strengthen the work of lAs before, in and after the construction. The SA Group herein puts forward the following proposals: 7.2.1 River Improvement Component oStrengthen the public education for ecological protection and cultivate their awareness of environmental protection; actively prevent wastewater from discharging into the rivers; make efforts to improve water environment and beautify the environment. After the project completion, supervision shall be strengthened over wastewater discharge of the riverside enterprises and residents. The administrative power shall be exerted to keep the inland river water clean. oThe river improvement component shall take full consideration of the demand of local farmland irrigation and pre-set the sites for reasonable water pumping in the
47 engineering design under the premise of no additional engineering cost. Such will be good for prolonging the life time of the Project and exerting its benefits to the upmost. In addition. the convenient farmland irrigation will. to some extent, reduce the economic burden of the farmers. During project construction, in case of any impacts on the riverside "temple of the god of earth", the lAs shall turn to the villagers' committee to coordinate with the villagers in a priority and well-informed way, explaining to the villagers the significance of the project construction, the potential impacts to "temple of the god of earth" and when these impacts may be gone etc. They shall co-work with the villagers to find out proper way to the handle the problem and prevent the conflicts from disturbing the project progress. [After the project completion, to erect notice boards such as "Danger, no swimming in the river" and "Please protect public facilities" at the easily identified places to prevent the drowning accidents and fully exert the positive effects of the Project. DTo compile detail RAP. well conduct the resettlement work and give compensations to the APs of house demolition and land acquisition according to the policies. 7.2.2 Wastewater Component DOn the basis of consultation with the affected vulnerable groups as well as public price hearings. to determine wastewater treatment fee for the MLSS and other vulnerable groups so as to reduce the wastewater treatment fee to their affordability. The lAs should take into account of the difficulties of the local MLSS population and coordinate with the relevant departments to work ou detail and workable scheme and the time schedules for solving the problems of low affordability of the MLSS. During the project construction and operation. to strengthen environmental education for the enterprises, upgrade the environmental protection awareness of the local enterprineurs and enable them to undertake the social responsibilities in this regard. During operation period, to strengthen the supervision over wasterwater discharge of the enterprises, coordinate with environmental department for the inspection of water quality of the local water body and prevent illegal waterwater discharge of the enterprises. DThe lAs should coordinate with the Water Supply Company to find out the reasons for not using tap water and well handle wastewater collection work of these residents. lAs should, on the basis of resettlement survey, compile detail resettlement plan; strictly adide by the national and local laws and resettlement plan; offer compensation and resettlement to the affected people. They should also communicate with APs affected by land acquisition and house demolition and convince them to support the wastewater treatment components. DThe lAs should establish the emergency response mechanism for pipeline repair and notify the public of the hotline; timely handle the problem to reduce the users' loss to minimum and ensure the normal operation of wastewater treatment facilities. DThe lAs should strengthen self-administration, establish the self-monitoring mechanism for standard discharge and conduct regular or irregular check on the outlet water quality of WWTPs and ensure the standard discharge of wastewater of WWTPs. Risks of all project areas and proposals are shown as follows:
48 Table 7-1: Summary of Project Risks and Action Plan
Sub-Components Proiect Risks Action lime
River Improvement Component
Ft>nghuangjiang River Sub-component; Phase-I of Liangqinghe River and Lengtangchong River Sub-component o Risk caused by the residents due to the lack of environmental consciousness; oRisk caused by the change of farmland irrigative modes; ORisk caused by the impacts on "temple of the god of earth"; iJRisk caused by the habits of the residents; DRisk caused by land acquisition and house demolition. Environmental education and training plan have been compiled into EMP; lJProject design has taken into consideration of water pumping for irrigation; DThe compiler of the RP has discussed with the villagers and identified the site for reconstruction of "temple of the god of earth" within the cost of the RP.
DAfter project completion, to erect notice board at dangerous section;
49 DIAs have compiled detail RAP. uConstruction period and operation period. o Preliminary stage LIPreliminary stage and construction period; [JOperation period; o Preliminary stage of construction Wastewater component Phase-II of Jiangnan WWTP sub-component; Wuming WWTP sub-component, Phase-I, Binyang WWTP sub-component, Phase - I Phase-I of Hengxian WWTP sub-component; Phase-I of Shanglin WWTP sUb-component; •
Mashan WWTP sub-component, Phase-I
[lRisk caused by the low afford ability of the MLSS population (especially in the project area of Mashan and Shanglin); [J Risk caused by low or unwillingness of enterprises to connect their wastewater with the WWTPs; o Risk caused by failure in collecting partial wastewater tariff; oRisk caused by land acquisition and house demolition. LJ Risks caused by the damage of sewage pipelines; DRisk caused by wastewater discharge;
so [JlAs and the relevant governmental departments have committed to, before the project implementation, work out favorable policies or offer subsidiaries to the MLSS. LiThe wastewater connection fee of enterprises are covered by the project construction cost by DI. iJStrengthen the work of collecting water tariff from those who use other sources of water other than tap water; DCompile RAP; [IEstablish the emergency response mechanism and notify the public of the h ..ot.;;,;li.;.;n,;;,e;..; ____-, • OEstablish self-monitoring mechanism for standard discharge and conduct regular or irregular check on the outlet water quality of 'MNTPs. uConstruction Period nConstruction and operation period [JConstruction and operation period nConstruction and operation period [JConstruction and operation period DOperational Phase oOperational Phase o
51 Appendix 1: Project and Ethnic Minorities
Nanning Urban Environment Project (NUEP) is located in Nanning city in southern Guangxi, the capital city of Guangxi Zhuang Autonomous Region of P. R. China, situating in 107°19'E-109°38'E and 22°12'N-24°2'N (108°22'E, 22°48'N). It is on both banks of Yongjiang River of Nanning Basin. The total area is 22293 k m'. Yongjiang River is a tributary of Xijiang River, while Xijiang River is also the trunk river of the Pearl River. This Project is proposed for the environmental upgrading for Yongjiang River and its tributaries. The components of NUEP include: (i) environmental improvement for 3 tributary rives in the urban area; (ii) construction of 6 WWTPs in the urban area and counties. The three tributary rivers under upgrading are respectively located in Xiangsihu New District and Wuxiang New District (geographically overlapping with Xixiangtang District and Liangqing District). The six WWTPs are respectively in Jiangnan District, Wum ing county, Binyang county, Hengxian county, Shanglin county and Mashan county. The project areas of all components of NUEP have ethnic minorities, and thus the Project and Ethnic Minorities Report is compiled. The contents of this Report are: (i) profile of ethnic minorities of project areas; (ii) participation in project by ethnic minorities; (iii) inter-related impacts between the project and the ethnic minorities; (iv) the paying willingness and affordability of the ethnic minorities of the wastewater sub-components; (v) the applicability of OP 4.10 to the ethnic minorities of the project; and (vi) policy recommendation for ethnic minorities. The objectives of compiling this Report are to promote the public participation of the ethnic minorities, identify the inter-related impacts between the ethnic minorities and the project, avoid the potential social risks brought to the ethnic minorities by the project, clarify the necessity for preparing a separate development plan of ethnic minorities, as well as enable the ethnic minorities to share more benefits brought by the project. 1. Profile of the Ethnic Minorities in Project Areas 1.1 Conditions of minority population Nanning is the capital city of Guangxi Zhuang Autonomous Region and a place with the most concentrated Zhuang minority. The population of Nanning city mainly consists of Zhuang, Han, Yao, Mulam, Miao, Dong and Hui peoples, other ethnic minorities such as Maonan, Jing, Yi, Shui and Gelao etc. also reside in Nanning. Among all these peoples, Zhuang is the largest followed by Han. The proportion of minority population of Nanning city ranks the first among the five capital cities of autonomous regions in China. The general characteristics of minority distribution of Nanning city is featured by Zhuang followed by Yao. The proportions of other ethnic minorities are comparatively less. In this regard, Zhuang accounts for 55.9%, Han for 42.2%, Yao for 1.5%, Mulan for 0.066%, Miao for 0.066%, Dong for 0.060% and Hui for 0.057%. Other minorities such as Maonan, Jing, Yi, Shui and Gelao etc. are also scattered in the city but few in county towns. So these five minorities are not affected by the Project. In terms of project areas, the highest minority proportion is in Liangqing District (Wuxiang New District), mostly of
52 Zhuang minority. In the wastewater component, the first three highest proportions of affected minorities are in Wuming county, Shanglin county and Mashan county. Wuming county is mainly featured by Zhuang minority, but with 1109 persons of Yao minority distributed. In Shang lin and Mashan counties, except Zhuang, the population of Yao are respectively 30995 and 41576 persons. The major reason is that, Shanglin and Mashan have three Yao minority towns, respectively Guzhai town and Lidang town of Mashan county and Zhenxu town of Shang lin county. These three minority towns are not located in the county towns, and thus Yao minority will not be the main minority affected by the Project. Binyang county has 280 persons of Dong minority distributed but not in the county town, and thus they are not the major group affected by the project. Details of minority distribution of the project areas are shown in the following table.
53 Table 1 Distribution of Ethnic Minorities in Project Area I County of Nanning City (2006) Whole Jiangnan Xixiangtang Liangqing :w;urning Binyang Hengxian Shangl)n Mashan Ethnic groups . City District District District County County county County County year end total population (nos) 6716926 416195 772266 215609 213667 275647 320533 124232 133635 Percentage of minority population 57.60 50.45 41.41 92.42 87.25 19.58 38.13 85.21 63.36 (%) Zhuang (%) 55.9 49.33 39.06 91.69 67.04 19.14 37.99 76.66 74.995 Yao 1.5% 1109 9517 1366 1109 652 30995 41576 Miao 0.066% Mulam 0.066% 280 Dong 0.066% persons Hui 0.057% Notes: (i) Source: Statistical Yearbook of Nanning City 2007, materials provided by Nanning Civil Affairs Commission; (ii) Where without figures lacks of relevant statistical record due to few people and scattered distribution.
54 Among the six ethnic minorities with statistical records, Zhuang has the most population and followed by Yao. Miao, Gelan and Hui minorities have some persons affected by the project. Dong minority is concentrated in a few villages of Binyang county. They do not live in the county town and thus will not be affected by the project. Computed as per the distribution proportion of ethnic minorities of all project areas, there are approximately 69.88% thousand minority people who will be benefited from the project. Among them, 15400 people will be benefited from Fenghuangjiang SUb-component, 221800 people benefited from phase-I of Liangqinghe and Lengtangchong sub-component, 210900 people benefited from phase-II of Jiangnan WWTP, 109100 people benefited from phase-I ofWuming WWTP, 25500 people benefited from phase-I of Binyang WWTP, 41000 people benefited from phase-I of Hengxian WWTP, 39400 people benefited from phase-I of Shanglin WWTP and 35800 people benefited from phase-I of Mashan WWTP. This report will make appraisal of the impacts caused by the project on the Zhuang minority and Yao minority. 1.2 Major characteristics of ethnic minorities According to OP 4.10, "the term 'Indigenous Peoples' is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (ii) Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; (iv) An indigenous language, often different from the official language of the country or region. Based on the above characteristics, the minority conditions of each SUb-component will be identified. Among all the SUb-components of the project, only Zhuang minority are relatively concentrated. Other minorities have highly assimilated to the local mainstream peoples, mostly due to work or marriage. The ethnic awareness of all minorities is not strong. No ethnic boundaries have been formed during the daily intercourse, nor any ethnic separation has been formed in marriage. These minority people live in the county town with other ethnic groups without any geographically distinct habitats or ancestral territories. There are no differences between the dominant SOCiety and them with regard to the economy, society and pOlitical institutions. All the ethnic groups retain their own customary culture and undergo inter-action and integration with each other during the daily social activities. In the words of an official from Nanning Civil Affairs Commission, "Nanning is one of the most harmonious places among all the autonomous regions in China". As collected by the SA Group, the characteristics of the ethnic minorities of the projects are summarized in the following table.
55 Table 2: Summary of Major Minority Characteristics of Project-Affected Areas
56 SL. Major Ethnic Characteristics
1 I Zhuang History: Originated from Ouluo and Xi'ou peoples of ancient Baiyue group. With historical development and other reasons such as war, border garrisoning, famine striking, doing business, marriage etc., Zhuang and other ethnic groups immigrated from outside and lived together. OLanguage: Mandarin, Cantonese, and Zhuang dialect. Zhuang dialect belongs to the Zhuang-Dong and Zhuang-Dai branches of Sino-Tibetan language family. The Zhuang dialects used by the Zhuang people in different areas of Nanning city are different. The written language of Zhuang minority was formed under the help of linguists of the former Soviet Union, with Wuming Zhuang dialect as the standardized pronunciation. In history, block Zhuang words, namely "Zhuang original words", were created through imitating Han characters to record words of songs. However, young people cannot recognize these words. oReligion: Nature worship, ancestors worship, multiple-gods worship. In Ming and Qing Dynasties, Buddhism was introduced to some Zhuang minority areas of Nanning. Affected by Han people, Taoism was introduced. nSocial organization. The Zhuang people of the project areas do not have special social organizations. In Nanning, this is only one academic organization on Zhuang culture - Association of Zhuang Study. Han-Zhuang marriage is not uncommon. OEconomy: Zhuang people are called by historical books as "farming tribe" or "rice-growing tribe". By now, Zhuang people also emphasize agriculture, forestry, irrigation, animal husbandry and handcraft etc., having no econ~differences from the Han people. DO the rs: Fe stiv als of Zh ua ng pe opl e are
3rd da
57 y of the 3rd lun ar mo nth , fes tiva lof the de ad spi rits (gh ost fes tiva I), Zh ua ng ye ar, flo we r·st ree t fes tiva
58
r-:- riC e fes tiva I etc
Mo st of the se fes tiva Is are the sa me wi th tho se of Ha n pe opl e.
21 Yao
DHistory: Yao is one of the indigenous peoples of Nanning whose ancestor was a part of "Changsha-Wuling minorities" in Qin and Han Dynasties. In the Southern and Northern Dynasties, it was called as "Mo Yao" and as Yao in Song Dynasty and afterwards. Due to various reasons of famine
61 and wars etc., Yao immigrated southwards. Language: Yao has it own speaking dialect but not written language, belonging to Yao language branch of Sino-Tibetan language family. The Yao people of Nanning speak Zhuang dialect. Many Yao people cannot speak Yao dialect now. DReligion: Ancestors worship, Taoism, worshiping common patriarch. oSocial organization: The organization of Yao family belongs patemal line small family featured by exogamy marriage. Children will live in separate families after marriage. The parents live together with the youngest son and will be attended by all sons till death. Mostly, the husband is responsible for the family management under the support of the wife. The son or the live-in son-in-law will have the rights to heritage. o Economy: In ancient times, Yao people scattered in mountainous areas and engaged in agriculture. Now, there are no differences between the dominant society and Yao people. oOthers: Festivals include spring festival, the Lantem Festival, dragon festival, tomb-sweeping day, dragon boat festival, god of agriculture festival, festival of the dead fresh rice festival, the double ninth festival, festival. Yao people are fond of folk Sources: Institutional interviews by the SA Group.
62 During the whole process of social assessment, the most frequent sentence used by the local people, regardless of government officials or the common people, was "All the ethnic groups of Nanning city are living in good harmony.". This has become a pride of the local people of different ethnic groups. In fact, there are not any ethnic contradictions in these places. Any conflicts, if any, were caused by other reasons such as economic issues. This is a very important ethnic characteristic of Nanning which is quite different from other places. With regard to the ethnic combination, one of the main features is the use of common language - Chinese as the official language. All the local Zhuang, Yao, Miao and Mulan peoples use Chinese as the written language. The second major characteristic is that all the ethniC peoples will celebrate the same festivals, such as the Spring Festival, festival of dead sprits etc. The third major characteristic is that, in the project areas of all sub-components, all the peoples are in good and close relationship with each other without deliberately showing off their ethnic identity. Marriage between the people of different ethnic groups is not uncommon. There emerges a state of overall economic, social and cultural integration among all the local ethnic groups, which has laid down solid social foundation for the implementation of the project. 1.3 Relevant polices for ethnic minorities Under such a grant circumstance of ethnic integration in Nanning, the preservation of the minority identity will be a special issue concerning the policies for ethnic minorities in national and local levels. In the national level, the Constitution stipulates that, under unified national leadership, regional autonomy is practised in areas where people of minority nationalities live in concentrated communities, and in these areas organs of self-government are established to exercise the power of autonomy. Such indicates that the government respects and safeguard that the ethnic minorities administer their internal affairs and also reflects a principle of equality, unity and mutual prosperity among all nationalities. Law of the People's Republic of China on Regional National Autonomy is the basic law for implementation of regional national autonomy as allowed by the Constitution, which stipulates relevant terms and conditions for language, religion, local autonomy, economic development and use of natural resources relating to the ethnic minorities. oLanguage: Article 10. All nationalities have the freedom to use and develop their own spoken and written languages and to preserve or reform their own folkways and customs. Article 21. In performing their functions, the organs of self-government of the national autonomous areas, in accordance with the regulations on the exercise of autonomy in those areas, employ the spoken and written language or languages in common use in the locality. In areas several languages are used in performing their functions, organs of self-governments may use the language of the ethnic group exerCising regional
63 autonomous in the areas. Article 49. The organ of self-government of a national autonomous area shall persuade and encourage cadres of the various nationalities to learn each other's spoken and written languages of the local minority nationalities. While learning and suing the spoken and written languages of their own nationalities. cadres of minority nationalities should also learn mandarin and the written Chinese (Han) language commonly used throughout the country. Awards should be given to state functionaries in national autonomous areas who can use skillfully two or more spoken or written languages that are commonly used in the locality. DReligious belief. Article 11. The organs of self-government of national autonomous areas shall guarantee the freedom of religious belief to citizens of the various nationalities. o Local self-government. Article 12. Autonomous areas may be established where one or more minority nationalities live in concentrated communities. in the light of local conditions such as the relationship among the various nationalities and the level of economic development. and with due consideration for historical background. Within a national autonomous area. appropriate autonomous areas or nationality townships may be established where other minority nationalities live in concentrated communities. Article 22. In accordance with the needs of socialist construction. the organs of self-government of national autonomous areas shall take various measures to train large numbers of cadres at different levels and various kinds of specialized personnel. including scientists. technicians and managerial executives. as well as skilled workers from among the local nationalities. giving full play to their roles. and shall pay attention to the training of cadres at various levels and specialized and technical personnel of various kinds from among the women of minority nationalities. Article 48. The organ of self-government of a national autonomous area shall guarantee equal rights for the various nationalities in the area. The organ of self-government of a national autonomous area shall unite the cadres and masses of the various nationalities and give full play to their initiative in a joint effort to develop the area. o Economic development. Article 25 Under the guidance of state plans. the organs of self-government of national autonomous areas shall independently arrange for and administer local economic development. Article 50. The organ of self-government of a national autonomous area shall help other minority nationalities living in concentrated communities in the area establish appropriate autonomous areas or nationality townships. o Use of natural resources. Article 28. In accordance with legal stipUlations. the organs of self-government of national autonomous areas shall manage and protect the natural resources of these areas. The organs of self-government of national autonomous areas shall protect and develop grasslands and forests and organize and encourage the planting of trees and grass. Destruction of grasslands and forests by any organization or individual by whatever means shall be prohibited. In accordance with legal stipulations and unified state plans.
64 the organs of self-government of national autonomous areas may give priority to the rational exploitation and utilization of the natural resources that the local authorities are entitled to develop. In addition, Law of the People's Republic of China on Land Administration, Law of People's Republic of China on Land Contract in Rural Areas are also the legal documents to safeguard the ethnic minorities of the project areas to the land use rights. Among the local laws and regulations of Nanning city, one of the most important and affective policies is to favor the examinees of ethnic minorities in the university enrolment examination. According to the relevant provincial regulations of Guangxi, the files of the examinees of ethnic minorities coming from the urban and outskirt counties of Nanning city shall be submitted for enrolment selection in advance, respectively: 5 scores less in total for the Zhuang and non-indigenous ethnic minorities of non-agricultural household in urban area; 10 scores less for those from three counties of Mashan, Shanglin and Long'an; 7 scores for others from other outskirt counties. In addition, additional 5 scores shall be given to the ethnic minorities who participate in the examination of civil servant. The above two special policies of giving additional examination scores are exclusively for the minority examinees that aim to safeguard the social equality in education. Such system, as a result, gives a sense of priority to the local ethnic minorities who would treat it as a critical event in their career. It is also an important force that maintains the ethnic boundaries. Another important local policy is the organization of study class for learning Zhuang language that aims to cultivate talents of ethnic minorities. In the seven middle schools for ethnic minorities, there are 20 classes using Zhuang language, inclusive of 920 students (2004). These classes are characterized by bi-lingual teaching, Mandarin and Zhuang. The curriculum has two periods of Zhuang language, emphasizing the reading and writing in Zhuang language. Other courses are the same as other ordinary schools. Study of Zhuang language is an extra curriculum for the students, which is inconsistent with the prevailing entrance examination for higher education. So, many families of a bit better conditions are not willing to have their children study Zhuang. Implementation of these policies have strongly safeguarded the economic and social interests of the ethnic minorities, maintained their customary culture, preserved Zhuang written language, as well as laid down solid policy foundation for the development of all ethnic minorities of China.
2. Ethnic Minorities and Project PartiCipation
2.1 Design of project participation for ethnic minorities The local ethnic minorities conduct actively political partiCipation. The rates of cadres of ethnic minorities are correspondent to the rates of populations. However in some project areas, the population of ethnic minorities is higher than that of Han people. Due to this characteristic and considering such objective factor as surveying time, the scheme for minority participation was deSigned via Participatory Rural Appraisal (PRA). The SA Group adopted discussion meetings with the governmental institutions,
65 enterprises and shop owners as well as individual interviews and large-scale questionnaire survey to ensure the participation of the stakeholders of all ethnic minorities in project decision. o Discussion meeting with government institutions. The participants were the officers in charge of minority affairs of respective departments. According to the information of population, social and cultural characteristics of local minorities, the SA Group tried to identify the impacts possibly brought about by the project and seek opinions or comments on project implementation from the local cadres of ethnic minorities. The participating institutions included local ethnic civil affairs commissions, public health bureaus, environmental protection bureaus of Nanning municipality level, and the local ethnic civil affairs commissions, construction & planning bureaus, public health bureaus, environmental protection bureaus and civil affairs bureaus etc. cDiscussions with people of enterprises (including stores). These discussion meetings focused on investigating the affordability and paying willingness of wastewater pipeline connecting charges and wastewater treatment fee of the local minority people, including investigating their actual requirement, the possible impacts on them caused by the project, the use of types of water sources and wastewater treatment of enterprises or stores etc. Their suggestions or comments on project implementation were also sought. Clndividual household interview. In the river improvement component, the individual household interview focused on the investigation of the existing livelihood, conditions of land utilization, willingness of house demolition and compensation etc. of the local people affected by the project. In the wastewater component, the individual household interview focused on the investigation of rehabilitation of livelihood, willingness of house demolition and compensation of the displaced ethnic minorities. The focuses were also placed on the investigation of the common people for their project demands, affordability, paying willingness, project participation willingness and suggestions etc. In this process, the poverty group and women were speCially focused. cQuestionnaire. The questionnaire survey aimed to investigate the public awareness of environmental protection of the ethnic minorities of the project areas, focusing on the partiCipation willingness, affordability and paying willingness. In addition, other information such as the economy and social development of the ethnic minorities were also investigated. By means of the above-mentioned methods, the SA Group has conducted social assessment involving the minority participation in 8 sup-component areas. 2.2 Design of project participation for ethnic minorities The SA Group conducted the free prior informed consultation among the affected ethnic groups. (i) Training the surveyors. Before the survey, the surveyors received PRA training so that they could use the PRA approach to have better understanding of the objectives and requirement of the project.
66 (ii) Collecting data of project communities. Before the survey, the relevant surveyors collected and sorted out the data of the ethnic minorities of the project areas regarding the population and distribution, minority history and culture, minority economy and social development etc. Other information such as use of water sources and health conditions of the local minorities were also the focus of survey. (iii) Holding discussion meetings. After entering the project areas, the surveyors called the relevant institutions, enterprises and villages for discussion meetings so that they could have better knowledge of various issues of the project areas. In this regard, project participation willingness of the local residents was the focus of survey. (iv) Household individual interview. After knowing about the basic information of the affected minority areas, the surveyors entered the individual household for questionnaire or close interview survey. (v) Survey summary. The surveyors analyzed and summarized all the collected information and, based on which, form the journal and made preparation for compiling the SA. (vi) Information feedback. The SA group submitted the survey result to the lAs with recommendation for solving the potential problems. At the same time, the comments of the policy departments would be also fed back to the project areas. The methods of free prior informed consultation approach include: (i) Discussion meeting. In the villages I communities to be investigated, the local villagers or residents, regardless of ethnic status, race, gender, age, wealth and areas, were informed of the main construction contents of the project. After the villagers I residents had overall understanding of the project, the surveyors collected information relevant to the project (such as quantity of land acquisition, area of house demolition, afford ability and paying willingness of wastewater tariff etc.), verified the information with villagers I residents, analyzed and summarized the problems, as well as found out the means for solving the problems. Local cadres were informed of the construction contents before discussion meeting. Then, necessary documentary materials were collected and discussed. (ii) Questionnaire In order to have better understanding of the displaced people regarding status of livelihood and production, as well as the cognitions and suggestions on project construction, the SA Group compiled Questionnaire on Paying Willingness and Affordability for Wastewater Component under NUEP Financed by the World Ban. which are used by the trained surveyors for information collection. (iii) Close interviews. As to those residents with deep recognition or suggestion on the project construction, the SA Group adopted close interview to discuss with them. The local cadres with distinctive ideas were also the targets of close interviews. These people who have worked locally for many years have deep understanding of the local custom, their suggestions would be often beneficial to the project implementation. Through deep interviews, the surveyors have collected many valuable information relevant to the project construction. They have also acquired better understanding of the
67 problems that may possibly brought about by the project, so that they can ensure the depth of project participation of the ethnic minorities.
Table 3 Free Prior Informed Consultation of Minority Groups
Resident s of Riv project er area im (including pro poverty ve househol me ds, ethnic nt minorities
co I women mp and on migrants)
ent I lAs and SA Group members Discussion Individual Household Interview
PRA Approach
• Share of project information • Analysis on project requirements • Assessment on project design and implementation • Project impacts analysis • Analysis of existing problems of the Project • Proposin g expectati on and suggesti on
68 Affected people (ir enterprises, shop poverty household~ minorities, wome Wastewater component migrants), lAs c Group members
Discussion Close interviews
Questionnair e
• Share of project information • Analysis on project requirements • Assessment on project design and implementation • Project impacts analysis • Analysis of existing problems of the Project • Proposin g expectati on and suggesti on Governmental cadres and lAs of
project areas, SA i Group members Discussion Interviews
Collection of documentary data
• Share of project information • Analysis on project requirements • Assessment on project design and implementation • Project impacts analysis • Analysis of existing problems of the Project • Proposing expectation and suggestion
69 2.3 Participatory results of ethnic minorities Through PRA and free prior informed consultation, the SA Group fully acquired the willingness of ethnic minorities and the potential social impacts on the ethnic minorities caused by the project. In addition, SA Group has also collected the proposals of the ethnic minorities for the project implementation. All the data used for the analysis in the following chapters come from the PRA materials. During the interviews, the common people and cadres all expressed their most welcome to the river improvement component. Since the poor water environment of the rivers has already affected their life, the local ethnic minorities showed strong will for river improvement. The questionnaire survey was designed specially for wastewater treatment component. The ethnic participants of questionnaire survey total 589 persons. Among them, 545 persons belong to Zhuang ethnic group, accounting to 92.5% of the surveyed ethnic minorities. 36 persons belong to Yao ethnic group, accounting for 6.1 %. The rest 8 persons respectively are: 5 Miao persons, 2 Mulan persons and 1 Hui person. The surveyed ethnic minorities cover the 5 minorities to be assessed by the SA Group. The socio-economic profile of all ethnic minorities is shown as follows:
Table 4 Statistical Table of Questionnaire Survey for Ethnic Minoriteis via PRA Factors (valid Statistics samples) Gender (573) Male 45.9%, female 54.1% Age (584) Average age: 30.78; standard deviation: 10.214 Educational level University and above 15.1%; junior college 37.4%; senior middle {556} school 75.4%; junior middle school 95.3% and primary school and below 100%. Occupation (568) Leaders of public institutions 4.6%; heads of enterprises 1.4%; technicians and assistants 7.6%; office clerks 9.3%; heads of business or service industry 9.0%; businessman or service workers 25.7%; operators of production transportation equipment 1.1%; the unemployed 16.7%; retirees 1.9%; housewives 6.3% and students 16.5%. Family annual Less than RMB 5000 accounting for 13.5%; RMB 5001-10000 for income (585 ) 18.1%; RMB10001-20000 for 19.8%; RMB20001-30000 for 9.6%; above RMB 30000 for 5.5%; No idea accounting for 33.5%. Enjoyment of Enjoyment accounting for 7.2%; no enjoyment accounting for 92.8%. governmental subsidiaries (572) Distance to "Very near" accounting for 5.7%; "Near" for 16.8%; "Not very near" for discharge outlet 30.2%; "Very far" for 14.8%; "No idea" for 32.4%.
70 (559) Project areas Wuming 27.0%; Bingyang 6.8%; Hengxian 10/0%; Mashan 29.0%. (589)
The computation results from 589 copies of valid samples show that 91.4% of the minorities are in favor of the wastewater treatment component, 3% are not in favor of the component; 5.5% don't care about it. The above-mentioned 3% minorities are mainly the APs suffering most from the negative impacts caused by the Component, such as displaced people and the residents nearby the WWTPs. Among the interviewees, 90.3% chose the items of "hope" or "very much hope" to WWTP construction while 2.3% chose "slightly hope". Only 1.3% chose "do not hope". In addition, 6.1 % chose "No idea". In general, the ethnic minorities are quite satisfied with river improvement component and wastewater treatment component and are in favor of this Project.
3. Analysis of Impacts on Ethnic Minorities Caused by Project 3.1 River improvement component 3.1.1 Positive impacts DThe river improvement component will improve the overall environment of the project area, ensure clean drinking water for human and animals, prevent wastewater from discharging into farmland. Such will be helpful for reducing the incidence of diseases in project area hence to strengthen the health of the minorities. DThe implementation of the components will also help the minorities to set up the subjective awareness of environmental protection, forming good sanitary habits. DThe project implementation will facilitate the local economic development, especially tourism and fishery. The development of tourism will be beneficial for the preservation and transmission of the national culture. As shown in the survey by SA Group, the development of tourism is a great driving force for the preservation and transmission of national culture. Considering that most residents have been involved in the Project, the local government hopes that the development of tourism will boost the local economic development. Consequently. the traditional culture has taken root in people's heart along with the development of tourism. OThe construction of this Project has improved the environment of the project areas and offered amusement places where the minorities can play and enjoy themselves hence to improve their living quality. ~After the project completion. the river course will be widen, which upgrades the storage and flood control capacity of the river course. 3.1.2 Negative Impacts ['The river improvement component will spoil the existing irrigation mode of riverain minorities and spoil, to some extent, the completeness of farmland irrigation. Such will cause economic loss to the minorities depending on farmland and vegetable field for living. o Besides, the component will cover the demolition of partial factory workshop and houses of the minorities along the river banks. According to the prevailing laws of Nanning
71 city, the APs will be compensated for their losses. oSome ethnic minorities make their living by breeding fish in the pond naturally formed by the river course. However, the river improvement will change the mode of livelihood of these people. According to the prevailing laws of Nanning city, the APs will be offered compensation and resettlement.
3.2 Wastewater Component 3.2.1 Positive impacts DWastewater components will improve the urban sewer drains of the residential areas of ethnic minorities of the project areas and upgrade the environment of the project towns. uThe construction of WWTPs in county towns will ensure standard discharge of domestic and industrial wastewater, purify the water body, mitigate the pollution to the rivers of the project areas and reduce the negative impacts to the ethnic groups; DThe purification of water body will benefit the minority towns and villages in the low reaches of the rivers by improving their drinking water quality. oAs for the minorities living the project area, the improved water environment will reduce the incidence of waterborne diseases hence to build up the heath of the local minorities. oThe component construction offer non-agricultural employments to the minorities. Most of them wish to participate in the project construction and increase their family incomes. After completion, the daily operation needs professional labors, which also offer jobs for local minority residents. As for Mashan, Shanglin and Wuming counties concentrated with ethnic minorities, the component construction and operation fully depend on the local minorities. Therefore, the component will, to some extent, improve their living standard by increasing their incomes. 3.2.2 Negative Impacts DOne of negative impacts is, the component implementation will cause economic loss to farmers due to land acquisition and change of their life mode to non-agricultural one. Moreover, the component will also have house demolition of some minorities. lAs should offer compensation in accordance with the relevant laws and regulations of Nanning city. oThe component construction will also produce noise and security problems to the nearby area and cause inconvenience to their outing and agricultural production. IJAfter the component completion, the minorities need to pay small sum for wastewater treatment, which will add small burden to family expenses.
Generally, the positive impacts caused by wastewater treatment component and river improvement component are much greater than the negative impacts. Moreover, these negative impacts can be avoided through local laws and regulations as well as the replacement measures of the lAs. Through PRA, the minorities held the view that the component will improve their living environment. Therefore, the impacts on the minorities caused by the component are positive.
72 4. The paying willingness and affordability of the ethnic minorities 4.1 Problem identification and options of assessment methods A critical social issue of wastewater treatment component is the collection of wastewater treatment fee. In combination with the public willingness and existing wastewater tariff collection method of Nanning city, it is feasible and reasonable to adopt the collection of wastewater treatment fee based on actual water consumption. Two elements determine the purchasing activities of a consumer: affordability and the paying willingness. Therefore, the purchasing of wastewater treatment of the minorities will be assessed from paying willingness and the affordability. Paying willingness refers to a subjective state of mind of the APs on whether they are willing to pay the charges caused by the project implementation. The Report adopts contingent valuation method (CVM) for the assessment of paying willingness of the minorities. To be concrete, questionnaires and paying strategies were used to find out self-assessment on the paying willingness of the consumers. The Probability model of this assessment method is:
5 Pm =LCYt 4-1 ;=1
Ci refers to the probability of the paying amount of the minorities. Ci for "very much willingness", "quite willingness", "willingness", "quite unwillingness" and "very much unwillingness" are respectively 0.99, 0.75, 0.5, 0.25 and 0.01. Vi refers to the paying amount at the level of i. Traditionally, it is regarded that the affordability can be assessed as per 5% of family incomes. Assessment on affordability of the minorities for wastewater treatment fee can be made on the basis of data collected from questionnaire survey and statistical yearbooks. Taking into account of the socio-economic development of the local minorities, the SA Group defined the standards to be: water tariff (including wastewater treatment fee) takes 5% of the family incomes. The basic data for assessment comes from 543 copies of questionnaire returned in PRA 4.2 Paying willingness of the minorities It is computed that the paying willingness of APs in project areas is RMB45.78/month, as shown in the following table.
Table 5 Summary of Paying Willingness of Minorities for Wastewater Treatment Fee 95% Confidence Ethnic Average interval Interval Samples Standard Oevlation Group value Lower Upper span limit limit Grand total 543 45.7802 44.55093 42.0246 49.5357 7.5111
Since the minorities scatter in the county towns of the project areas, the SA Group paid special care to the paying willingness of minorities at different project areas. Details
73 are referred to the following table.
Table 6 Summary of Paying Willingness of Minorities for Wastewater Treatment Fee in Different Project Areas 95% Confidence Ethnic Average Interval Interval Samples Standard Deviation Group value Lower Upper span limit limit Wuming 148 45.1953 42.76012 38.2491 52.1415 13.8924 Bingyang 35 36.2864 41.40139 22.0646 50.5083 28.4437 Hengxian 55 44.11 43.78176 32.2741 55. 23.6718 Shang lin 153 44.5881 47.80120 36.953 52.2231 15.2701 Mashan 152 50.34 43.90972 43.3031 57.3769 14.0738 Grand total 543 45.7802 44.55093 42.0246 49.5357 7.5111 F=0.848 (df=4) , p=0.495
The statistical results show that the paying willingness of minorities slightly varies in different project areas. But the difference is not obvious. The paying willingness of APs of Mashan county was the highest, followed by Wuming, Hengxian and Shanglin. The paying willingness of APs of Bingyang county is the lowest. The paying willingness of APs of Wuming county was the most concentrated.
Table 7 Summary of Paying Willingness of Poverty Minorities Whether MLSS Population Samples Average value Standard Deviation MLSS Population 37 67.5169 66.53946 NonwMLSS Population 492 44.8604 42.33026 t=2.993(df=527),p=0.003<0.01
There was obvious difference in paying willingness between MLSS population and the NonwMLSS population. The results show that the paying amount of MLSS population was RMB 22.66 higher than that of non-MLSS population. Generally, the paying willingness of ethnic minorities was high. The paying amount of RMB 45.78 for wastewater treatment fee is higher than the average level of the APs of the project areas. Comparing with the Han, the minorities showed higher paying willingness for wastewater treatment fee. 4.3 The affordability of the minorities The computation formula of affordability is: annual water expenses I annual family income *100%. Analysis based on PRA materials shows that the factors affect the payable amount of water tariff include: census register, whether being MLSS population and the water price of the project areas. DDue to the substantial income gap between rural and urban residents, computation of affordability of minorities in rural area should be different from that of the urban area.
74 oSince the urban MLSS subsidies are different from that of rural MLSS subsidies. the affordability of urban MLSS population should be different from that of the rural MLSS population. oThe different domestic water price of different project areas is an influential factor of affordability of the minorities. Through the computation. the afford ability of the urban minorities and MLSS for wastewater treatment fee is shown in the following tables.
Table 8 Statistical Table for the Affordability of Urban Minorities for Water Expenses in Project Areas
Towners' Proportion Towners' per of water Annual per-caplta Aversge Monthly water Annual water Water household expenses Project expenses average members consumption consumption prtce with wastewater average In family Areas on water annual of (ton) (ton) tartff (RMBfT) annual annual (RMB) Income household : Income Income (RMB) (RMBI (%)
Urban 20 240 1.88 451.2 8471 3.42 28970.82 1.56 area
Wuming 11.34 136.08 2.05 278.964 8798 4.32 38007.36 0.73
Bingyang 13.67 164.04 2.2 360.888 8851 4.54 40183.54 0.9
Hengxian 14.62 175.44 2.2 385.968 8635 4.29 37044.15 1.04
Shanglin 25.41 304.92 1.86 567.1512 7405 4.55 33692.75 1.68
Mashan 19.1 229.2 2.6 595.92 7120 4.39 31256.8 1.91
Table 9 Statistical Table for the Affordability of Urban MLSS Minorities for Water Expenses in Project Areas Project Monthly water Annual water Payable water Annual Urban Average Urban Proportion
Areas consumption consumption price (RMBIt) expenses MLSS' members MLSS' per of water (ton) (tonI on water per-capita of househOld expenses (RMB) average household average In family annual annual annual i income i Income Income i I I IRMB) (RMB) (%) I Urban 14 168 1.37 : 230.16 i 3120 3.42 10670.4 . 2.16 I I area Wuming 5.34 64.08 1.525 97.722 2400 4.32 10368 0.94
Bingyang 7.67 92.04 1.66 152.7864 2640 4.54 11985.6 1.27 .
Hengxian 8.62 103.44 1.66 171.7104 2640 4.29 11325.6 1.52
Shanglin 19.41 232.92 1.354 315.3737 2160 4.55 9828 3.21
Mashan 13.1 157.2 2.02 317.544 2160 I 4.39 9482.4 3.35
75 It is indicated in the tables that of all the minorities in the project areas, the affordability of urban minorities is far beyond the proposed RMB 0.8/t. Except for Mashan and Shanglin, MLSS minorities of other project areas have the ability to pay for wastewater treatment fee. Therefore, it is proposed to reduce the wastewater treatment fee to RMB 0.6 It and RMB 0.4 It for MLSS minorities respectively in Shanglin and Mashan counties so as to ensure the water expenses maintain at 3% of the family incomes. This Model adopts the data of Statistical Yearbook 2007, therefore, the computation results would be somewhat conservative. According to the local economic development progress, by 2011 when the project puts into operation, water expenses of the urban and rural minorities as well as the urban MLSS minorities will drop below 3% of the family incomes. Still, in terms of wastewater treatment fee, preferential policies should be given to the MLSS APs, especially the agricultural MLSS.
5. Identification of IPP According to OP 4.10 of the World Bank, if the project area involves ethnic minorities or minorities groups attach to project area, social assessment and consultation with the affected minority communities shall be conducted to determine whether there is any necessity to compile IPP. The IPP shall be flexible and practical to ensure (i) The affected minorities will get social and economic benefits conformable to their cultural customs; (ii) After confirming the negative impacts on the minorities, the Project will adopt measures to avoid, reduce and mitigate the negative impacts to minimum. Or, the Project will offer compensation for these negative impacts. 5.1 Basis for identification. Based on OP 4.10 of the World Bank, the SA Group determ ined whether or not to compile an along IPP from the following four aspects: D Benefits to the ethnic minorities. If the ethnic minorities are the sole or the majority direct benefited groups ®, the elements for minority development will be directly incorporated with the overall design of the project without the necessity of preparing an along IPP. This is the most fundamental point for the necessity of compiling IPP. D Destruction of land and natural resources. If the project construction has involvement of the acquisition or change of purpose of land or relevant resources of the ethnic minorities, the SA Group will focus on the possible negative impacts on ethnic minorities regarding their livelihood and adaptability to the natural resources wherefrom. DWhether the project would impoverish the ethnic minorities. If the project implementation would impoverish the ethnic minorities, and also the project design lacks of the effective mitigating measures, the SA Group will suggest compiling IPP to avoid such possibility. D Impacts on the cultural preservation. If the project has negative impacts on the cultural preservation of the ethnic minorities regarding ethnic language, religion and belief, the SA Group will suggest compiling IPP.
@ Due to the flowability of the population in the county towns, the SA Group adopted the proportion of the minority population of the project counties / district as the proportion of benefited minority population.
76 5.2 Results of identification. Based on the above four aspects, the SA Goup has identified the necessity for compiling an along IPP for the project as the follows: Din the eight counties and urban districts covered by the Project, except for Xixiangtang District, Binyang county and Hengxian county, ethnic minorities in the rest five areas constitute the vast majority of the local population. They are the direct beneficiaries. In Xixiangtang District and the county towns of Binyang and Hengxian counties, the ethnic minorities live together with the Han people, and thus the local minority people can also benefited from the project. This project is located in the place of largest Zhuang population in China, and the elements of minority development have been incorporated into the project overall design. oBoth components of the project involve the resettlement of ethnic minorities. The biggest potential risk of the project for ethnic minorities is the acquisition or change of use purpose of land or other resources. The RAP has given full consideration on mitigating the possible negative impacts on the ethnic minorities caused by the land acquisition and other issues. OThe river improvement component will bring about more welfares to the ethnic minorities instead of poverty. The wastewater component will collect some wastewater treatment fee from the minority people. Judging from the paying willingness and affordability of the ethnic minorities for wastewater tariff, the majority of them will benefit from this component. The minority MLSS agricultural households will be affected by the collection of wastewater tariff. However, there are very few people of this group in the project areas (urban area and county towns), and so such problem will be solved through giving them preferential policies in collection of wastewater tariff. LIIn addition, implementation of the project will not interfere with the language and region of the ethnic minorities, nor will break off their social customs and habits. Owing to its location in the capital city of Guangxi Zhuang Autonomous Region, the cultural preservation of the ethnic minorities of the project areas has been ensured under the national legal framework. A project aiming at improving the local eco-environment will not have negative impacts on the cultural heritage of the ethnic minorities. In this regard, the SA Group held the view that this project is out of the requirement of OP 4.10 (Operational Policy on Indigenous Peoples) on preparing an alone IPP. Conclusion. The project is located in the capital city of Guangxi Zhuang Autonomous Region. The population of ethnic minorities accounts for 61 % of the total population, being as the major benefited population. The ethnic minorities live in harmony with the Han people through inter-marriage, forming a peculiar harmonious state. Such has created a good social atmosphere for the successful implementation of the project. The ethnic groups, while keeping the self-cultural characteristics, The local minority people most use Cantonese, Mandarin and Zhuang dialect for communication, Mandarin and Zhuang are the official languages. The common people cannot use written language of Zhuang. The project will bring about many benefits to the ethnic minorities, upgrade the local
77 environment, improve the health and provide with job opportunities for the local people. The negative impacts mainly come from resettlement and land acquisition, which can be mitigated through design optimization and compiling RAP. The paying willingness for wastewater treatment fee of ethnic minorities is comparatively high and the affordability is rather strong. Limited by the local economic development, only affordability of the MLSS people in Shanglin and Mashan counties need policy support. Detail measures are as the follows: oThe wastewater tariff can be increased gradually to the marginal price of RMB O.BIT through the process of "one-time hearing, multiple times of increase". oTo further expound on the wastewater tariffs for different groups of people. Due to the differences in quality and volume of wastewater, the gap in wastewater treatment fees respectively for the residents and the enterprises can be widen, and the that for the MLSS people can be reduced. Identified by the SA Group, the project design scheme has incorporated with the minority development into the general design scheme of the project. Therefore, there is no necessity to develop an alone IPP.
78 Table 10 Summary of Elements for Minority Development Incorporated in Project Design
,---~~ Percentage of Components benefited Social impacts on ethnic minorities Factors integrated with minority development minorities (%) 1. To meet the requirement of the minorities, free prior 1. The project is located in Nanning city, the capital of Guangxi Zhuang informed consultation was conducted in project areas. Autonomous Region. The project design shall take into account of the This component has gained extensive supports from "Right to Know" of the minorities. majority minorities. Xixiangtang District: 12. The affected minority is mostly of Zhuang community. The project 2. The ethnic minorities hope to change local River 41.41 implementation will not have impacts on ethnic customs and culture. environmental condition. The goal of this component is to Improvement Liangqing District: 3. The negative impacts caused by LA on individual resettlers. This improve local environment. Component 92.42 project will not have impacts on the living of the minorities. 3. The resettlement plan has been compiled and the 4. River improvement component will, to some extent, spoil the measures have taken to avoid various social risks. completeness of farmland irrigation system, thus may cause economic 4. The project design has taken into account the sites loss to some minorities depending on farmland and vegetable land. for water pumping hence to avoid the impacts on ~~~______-+I_f_a_rm_land irrigation system of the minorities. I------llu------Ilu 1. To meet the requirement of the minorities, free prior Jiangnan District: informed consultation was conducted in project areas. 50.45; Wuming 1. The project covers Nanning city, the capital of Guangxi Zhuang This component has gained extensive supports from county: 87.25 Autonomous Region, and the counties under its jurisdiction. The project majority minorities. Binyang County: deSign shall take into account of the "Right to Know" of the minorities. 2. The ethnic minorities hope to change local 19.58; 2. The affected minority is mostly of Zhuang community. The project environmental condition. The goal of this component is to Wastewater Hexian county: implementation will not have impacts on ethnic customs and culture. improve local environment. component 38.13; 3. The negative impacts are mostly from ethnic minorities and LA. This 3. The RAP has been compiled and the measures have Shanglln County: project will not have impacts on the living of the minorities. taken to avoid various social risks. 85.21; 4. The MLSS population in urban area, Shanglin and Mashan showed 4. The project design has taken into consideration of Mashan County: high paying willingness, but their affordability is very low. constituting relevant water tariff exemption policies and 83.38 makes the vulnerable groups benefit from the welfare brought by the Project.
79 Appendix 2: Affordability and Paying Willingness of APs
It is learned from the above analysis that the critical social issue of wastewater component is the impacts of sewage network connection fee and wastewater tariff on the Project. This Chapter focuses on the analysis of these two critical social issues. More discussions will be conducted on three aspects of these critical social affaires: (1) paying willingness of the public; (2) the affordability; (3) wastewater tariff collection. Logically, it is to make clear the paying willingness of the public, especially the wastewater tariff; to analyze the affordability of the public. On this basis, an appropriate way of wastewater tariff collection shall be adopted. The final goal is to ensure the smooth implementation of this Project and achieve fairness in tariff collection. This Chapter aims only at wastewater treatment component that will incur additional charges, but at the river improvement component. The sewerage system of this Project is unable to extend into the individual houses, workshops or shops, so the residents and the enterprises have to install connection pipelines so as to link the internal wastewater discharging facilities with the external sewerage system. The SA Group defines such charges as connection fee. The connection fee is critical for the successful implementation of this Project. It will determine whether the WWTPs can collect enough wastewater. Only when the sewerage system has been connected, can the enterprises and households discharge their wastewater into the sewerage system. Therefore, the identification of the paying willingness and affordability and collection way of connection fee is of great significance to this Project. Wastewater treatment fee includes the charges of daily operation and maintenance. Wastewater treatment with SBR technology needs all kind of chemicals to neutralize pollutants in the wastewater. To remove the sludge in the sedimentation tank needs cost for labors. The daily management and the maintenance of wastewater treatment facilities and sewage network need to pay workers' salary. The governmental financial subsidies are just small part of the charges for the operation and maintenance of wastewater treatment facilities. Another part of such charges come from bank loans. Therefore, the users of wastewater treatment facilities, including local people and enterprises, need to pay wastewater treatment fee. Before the clarification of paying willingness of connection fee, it is necessary herewith to illustrate the sewers system of the project areas to identify whether such project areas need to pay connection fee. According to the IA and Design Unit, the land acquisition for factory site of Jiangnan WWTP (phase-II) has been completed in the phase-I. So, phase-II will not have land acquisition and pipeline construction. In addition, wastewater treatment fee has been collected in the service area., and so phase-II component will not involve additional fee for wastewater treatment. Thus, this Chapter will analyze the wastewater treatment SUb-components (phase-I) in the five counties. According the current situation of project construction, wastewaters from Xixiangtang
80 catchment area, Jiangnan catchment area, Shajing catchment area and Xiangsihu catchment area enter Jiangnan WWTP for treatment. In terms of the administrative division, it mainly includes Xiangxiangtang district and Jiangnan district. With the construction of other public facilities According to the Project Proposal, Chaoyangxi river environment project will further improve the . coverage rate of sewage network of Nanning city (including Jiangnan District). Other ongoing sewage. network construction projects include Nanning water environment project and ADS-financed Nanning Urban Environmental Upgrading Project. 81 Table 1: Summary of the Sewers System of the Project Areas ----- Components Status of Sewer Construction in Project Areas Connection Fee Required? At present, the coverage rate of sewage pipelines in Nanning city is about 42%. Phase-II of Jiangnan Vl/lNTP After the completion of the projects, the pipelines coverage rate will be further Yes sub-com ponent improved. The existing drainage facilities are reinforced concrete culvert canals. Wuming Vl/lNTP sub-component, The total length of the pipelines is about 25.15km, and pipelines construction has Yes Phase-I been completed in ASEAN Economic Zone. Binyang W\NTP sub-component, The existing drainage facilities are reinforced concrete culvert canals. Yes Phase-I The total length of the pipelines is 45.7km of DN300-DN 1350. Hengxian Vl/lNTP The existing drainage facilities are reinforced concrete culvert canals. Yes sub-component, Phase-I The total length of the pipelines is 45.7km of DN300-DN1350. The existing drainage facilities are reinforced concrete culvert canals. Shanglin Vl/lNTP, Phase-I The total length of the proposed interception pipelines along Chengjiang river is Yes 9km. The existing drainage facilities are reinforced concrete culvert canals. Mashan Vl/lNTP, Phase-I The total length of the interception pipelines along Gunianjiang river and the Yes sewerage pipelines within service is 8.2km. ------ ------ 82 1 Paying Willingness Paying willingness refers to a subjective state of mind of the APs on whether they are willing to pay the charges caused by the project implementation. In terms of this Project, the charges include two parts: connection fee and wastewater tariff. The paying willingness for connection fee and wastewater tariff will be stated as follows. 1.1 The paying willingness for connection fee 1.1.1 Payers of connection fee Through the questionnaire survey, the payers of connection fee as in the views of the people of the project areas can be identified .. The survey found that 63.3% interviewees held the view that the government should pay the connection fee; 22.3% interviewees thought of self-payment; 14.4% households needn't pay connection fee for they have already installed. Most people hoped the government pay connection fee showing their paying unwillingness. The paying willingness of the connection fee varies greatly among different groups of people. Different people of different family background have different paying willingness. Especially those MLSS families have different willingness from that of other families. The following text will analyze the above-mentioned two aspects. Family background is defined according to the index of family annual income. The Survey found that 13.1 % families have annual incomes of less than RMB5000, 30.4% have annual incomes of RMB5001-10000, 20.1% have annual incomes of RMB 10001-20000,9% have annual incomes of RMB20001-30000, 5.2% have annual incomes of over RMB30000. It must be pointed out that the average member of each household is 3.53 persons in Nanning. Moreover, it is indicated in the following table that the family incomes determine the self-payment willingness. Among the families with annual incomes of over RMB30000, 28.3% held self-payment willingness, which was the highest proportion of all the families in this regard. Among the families with annual incomes of less than RMB5000, 25.2% families also held self-payment willingness. Such APs include poverty groups. Therefore, detail analysis should be done in combination with MLSS recipients. 83 Table 2: Summary of Family Annual Incomes and Paying Willingness for Connection Fee Family Annual Income (RMB) Who should pay for connection fee >30 <5000 5001-10000 10001-20000 20001-30000 No idea Total thousand Govt. Count 70 98 119 58 25 175 545 Percentage among the others in same 60.90% 69.00% 71.30% 74.40% 54.30% 56.10% 63.40% column Percentage among total 8.10% 11.40% 13.80% 6.70% 2.90% 20.30% 63.40% Self-payment Count 29 25 34 14 13 77 192 Percentage among the others in same 25.20% 17.60% 20.40% 17.90% 28.30% 24.70% 22.30% column Percentage among total 3.40% 2.90% 4.00% 1.60% 1.50% 9.00% 22.30% Already available, without Count 16 19 14 6 8 60 123 payment Percentage among the others in same 13.90% 13.40% 8.40% 7.70% 17.40% 19.20% 14.30% column Percentage among total 1.90% 2.20% 1.60% 0.70% 0.90% 7.00% 14.30% Total Count 115 142 167 78 46 312 860 Percentage among total 13.40% 16.50% 19.40% 9.10% 5.30% 36.3~~ 1~~.gO%J X2=23.636 (df=10) , P (2-sided) =0.009<0.01 84 As shown in the following table, those MLSS people held higher self-payment willingness than those without MLSS enjoyment. Benefited from the governmental subsidiaries, the MLSS people can understand the purpose of the government and participate in this public welfare project. Table 3: Comparison of Paying Willingness for Connection Fee between MLSS People and non-MLSS People MLSS enjoyment I Payer for connection fee Total Yes No i Count 30 510 540 Govt. % ofMLSS 57.7% 63.8% 63.4% population Count 18 173 191 Self-payment % ofMLSS 34.6% 21.6% 22.4% population Already Count 4 117 121 available, without % ofMLSS 7.7% 14.6% 14.2% payment population 1.1.2 Paying willingness of the residents for connection fee To those households without connection to sewage network, it is impossible that the government pays all the charges as they have expected. Owing to limited amount of loans and the restriction of existing network, the residents should pay part of connection fee. Taking into account of public participation, paying part of connection fee by the residents will help to trigger initiativeness of the residents in protection of network facilities and make them participate in the project. Establishment of models. The SA Group cited that the paying willingness could not be simply divided into "willingness" and "unwillingness". The paying willingness is a dynamiC changeable process between "willingness" and "unwillingness", so it is a fuzzy terms. If the higher the payment is, the more residents tend to choose "unwillingness"; and vice versa. Therefore, the paying willingness in questionnaire is divided into five levels: "very much willing", "quite willing", "willing", "quite unwilling" and "very much unwilling". Such division is to make more specific definition of the paying willingness of the residents for certain amount of payment. In order to reflect the dynamics and fuzziness of the paying willingness, the SA Group herewith adopts Fuzzy mathematics to establish probability model of paying willingness. The model endues different willingness with different probability (Ci) of "very much willingness", "quite willingness", "willingness", "quite unwillingness" and "very much unwillingness" is respectively: 0.99, 0.75, 0.5, 0.25, 0.01. According to general price of project areas, the SA Group divided the paying amount of connection fee into 6 levels: RMB 150, 450, 750, 1050, 1350 and 1650. The ® This model shall apply to both analysis of paying willingness for connection fee and wastewater treatment fee, and thus no further such footnotes will be provided hereinafter. 85 interviewees made choices among the 6 options. Then, as to each interviewee, the final amount willing to pay would be the comprehensive figure, which we call it as the overall probability of paying willingness (Pm). Vi refers to the paying amount at the level of i. The formula is: 5 Pm = LCi~ 1-1 i=1 The data sources of the model. The data used in the model analysis of paying willingness are from the survey of Questionnaire on Paying Willingness and Affordabilify for Wastewater Component under NUEP. Excluding 57 copies with deficiency value, the valid questionnaire were 953 copies, having validity rate of 94.36%. The returned valid questionnaires from all project areas were nearly evenly distributed, respectively about 20%, as shown in the following Table. Since Jiangnan VWl/TP component (phase-I) has been put into operation, there is no necessity to re-identify the paying willingness and affordability of the public in accordance with Project Proposals. According to the current water price system of Nanning city, RMB 0.8/t of wastewater treatment fee will be collected along with the water price. Table 4: Summary of Distribution Questionnaires in Project Areas Sample size for , Valid count Accumulated Project county Count the probability ! (%) count (%) model Bingyang 207 20.5 20.5 188 Hengxian 195 19.3 39.8 186 Mashan 213 21.1 60.9 197 Shanglin 200 19.8 80.7 194 Wuming 195 19.3 I 100 186 Total 1010 100 957 Computation results. The computation results show that the APs of the five project areas are willing to pay a lump-sum amount of RMB581.22 for connection fee. The standard deviation was 766.44, the maximum value was RMB5346 and the minimum value was RMB54. This indicates that the paying willingness of the local public varies greatly. According to paying willingness for connection fee, the sequence as per project areas is: Mashan county (RMB693.72), Wuming (RMB6oo.78), Hengxian (RMB 580.80), Shanglin (RMB 552.90) and Bingyang (RMB 461.19). Viewing as per 95% confidence interval, the lower limit of connection fee in Bingyang county is RMB 372.96 while the upper limit is RMB549.4o. The interval is RMB 176.42. The public paying willingness in Bingyang county is the most concentrated. The statistical results show that the paying willingness for connection fee is not in direct proportion to local income level. According to Statistical Yearbooks of Nanning city, the income level of local residents is ranked as follows: Bingyang, Wuming, Hexian, 86 Shanglin and Mashan. Though Mashan is the national-level poverty county, the paying willingness of the local people is the highest. The reason may be, paying willingness is a kind of subjective recognition. If restricted by various conditions, the subjective willingness of the residents may vary. Table 5: The Statistical Table for Sewer System Connection Fee of All Project Counties The Project I Average , Sta~dard 95% Confidence I N interval ! Areas i value . deviation interval i span Upper Lower limit limit Wuming 186 600.7823 804.58823 484.3923 717.1723 232.78 Bingyang 188 461.1941 613.08457 372.9859 549.4024 176.4165 Hengxian 188 580.7952 699.99064 480.0832 681.5072 201.424 Shang lin 194 552.8969 817.62809 437.1165 668.6773 231.5608 Mashan 197 693.7157 839.84531 575.7097 811.7218 236.0121 Grand total 953 578.7655 763.10023 530.255 627.276 97.021 F=2.341 (df=4) , p=0.053<0.1 Secondly, we can also analyze the paying willingness of different age groups for connection fee. Because age (x) and connection fee willing to pay (Y) are two continuous variables, a linear regression model can be established to test the relationship between the age and the paying willingness. After input the data to the relevant statistical models, the statistical results are: F=15.718 (df=1), p<0.001. So, this model is quite expressive. The model is: Y=-0.128x+32.343 1-2 This model indicates that, as to the people from the age of 16 to 70 in the project areas, increase of one year of age would result in a reduction of RMB 0.128 of paying willingness. The older the people, the lower the paying willingness. Thirdly, among the APs, different education backgrounds would also have different paying willingness. The paying willingness of the APs is in positive correlation with the education background. The higher the education is, the higher paying willingness will be. Those people with college or above education background are willing to pay RMB 625.84 of connection fee, while those of primary education or below are only willing to pay RMB 230.61. The gap is rather substantial between those of secondary education (RMB 536.11) and those of primary school or below (RMB 230.61). Among the people of senior school education, the interval span of the 95% confidence interval is the least, indicating the people of senior middle school education are most concentrated regarding the paying willingness. 87 Table 6 Paying Willingness for Connection Fee of APs of Different Education Background Educational Mean Standard 95% Confidence Interval I Samples Level Value deviation interval span Upper Lower limit limit College and 118 625.8400 764.5708 486.4505 765.2359 278.7854 Higher College 187 603.9500 756.3665 494.8290 713.0641 218.2351 ,,.., ~, [High school 348 576.4300 776.8798 658.3397 163.8173 Secondary 214 536.1100 I 689.3316 443.2251 628.9945 185.7694 School Primary school or 38 230.6100 407.6909 96.6006 364.6099 268.0093 below Total 905 564.5000 741. 6.1415 612.8662 96.7247 F=2.377 (df=4) , p=0.05<0.1 Fourthly, in general, the annual household income is also in positive correlation with the paying willingness. Families of over annual RMB 30000 income are willing to pay RMB 685.07 of connection fee, whilst those less than RMB 5000 are willing to pay RMB 474.08. Among the families of annual RMB 10001 - 20000 income, the interval span is the least, being only RMB 171.72. Families of these annual income are mostly willing to pay. Table 7 Summary of Paying Willingness for Connection Fee of Families of Different Annual Incomes Family Mean Standard Interval Annual Samples 95% Confidence interval Value deviation span Income Upper Lower limit limit < RMB 5000 119 474.08 712.8605 344.6692 603.4821 258.8129 RMB 160 527.86 779.2395 406.1911 649.5276 243.3365 5001-10000 RMB 185 495.07 591.9264 409.2120 580.9340 171.7220 10001-20000 RMB 87 683.59 939.0147 483.4550 883.7174 400.2624 20001-30000 >RMB 49 685.07 790.6508 457.9700 912.1729 454.2029 30000 No idea 341 648.60 799.7997 563.4102 733.7950 170.3848 Grand total 941 580.95 765.2639 531.9 .9092 97.9~ F=2.124 (df=5) , p=0.06<0.1 88 Fifthly, the paying willingness of MLSS people is of visual importance for the poverty reduction function of the project. However, it is found that the paying willingness of these MLSS people stricken by poverty are not low. The reasons may be, due to the care of the government for their life, they have full confidence in the government. So, this group of people has high supporting rate for the government's decision. Table 8 Summary of Paying Willingness for Connection Fee of Different Groups Receiving Different Government Subsidies Government Samples Mean Value Standard Deviation Subsidies With government 56 976.3929 1260.404 subsidies Without government 874 556.2769 718.753 subsidies t=4.001 (df=921) , p<0.001 Sixthly, people of different occupations are also of different willingness in paying connection fee. The heads of enterprise are of high paying willingness as much as RMB 839.25. The reason is that these people have the highest income among all occupations, which is also closely related to the interests of the enterprises. It should be noted that, the survey was conducted in the summer holidays and so there were 142 students being interviewed. These students also showed high paying willingness, which may be attributed to their inexperience in social life and a role of consumer. The unemployed people have the lowest paying willingness, only RMB 490.39, followed by housewife, business owner and service staff. The interval span of 95% confidence interval of business and service staff is the least, and so the paying willingness of this group is the most concentrated. Such may attribute to the fact that these people who engage in hard work know the difficulty of earning money. Table 9 Summary of Paying Willingness for Connection Fee of People of Different Occupations Mean 95% Confidence Interval Occupations Samples Standard Deviation Value interval span Lower Upper limit limit Head of institutional 30 578.65 643.4795 338.3708 818.9292 480.5584 unit Head of 14 839.25 1360.803 53.5459 1624.954 1571.408 enterprise Technical 69 650.15 874.1904 440.1487 860.1556 420.0069 . staff Office clerk 70 549.36 677.7673 387.7564 710.9722 323.2158 or similar 89 Head of commercial 91 628.86 837.7477 454.3932 803.332 348.9388 service Commercial 261 551.48 725.2152 463.0891 639.8764 176.7873 service staff Equipment 14 627.96 650.9244 252.1317 1003.797 751.6651 operator The 149 428.77 668.1314 320.6045 536.9324 216.3279 unemployed Retired 24 559.62 685.5717 9.1165 578.983 Housewife 56 490.39 579.2801 335.2606 645.5251 310.2645 • Student 142 775.08 899.3403 625.8766 924.2784 298.4018 Total 920T5B3.94 770.5123 534.0806 633.79 99.7094 F=1.882 (df=10) ,p=0.044<0.05 Seventhly, as to the wastewater component, the distance of a family to the sewage outlet is a noticeable factor for analysis. It can be seen from the next table that, the shorter the distance, the lower paying willingness will be. The reason is that, short distance means more convenience for wastewater discharge, and so the paying willingness is not strong. However, the distances, regardless of very long or long, seem not in positive correlation with the paying willingness. Table 10 Summary of Differences in Paying Willingness for Connection Fee in Terms of Distances to Sewage Outlets Distance to Average 95% Confidence Interval Samples Standard Deviation Sewage value interval span Outlets I ... per I.. ! it Very 72 560.0208 940.2684 33 441.9045 near Quite 148 5 686.351 473.8399 696.829 222.9891 near Not near 268 680.8937 893.6715 573.4127 788.3747 214.962 Very far 125 600.216 820.8509 454.899 745.533 290.634 I No idea 299 511.8462 618.5223 441.4522 582.2401 140.7879 Grand 912 589.3635 774.8352 539.0091 639.7179 100.7088 total Conclusion: According to analytical results of the above, RMB600 and RMB500 as the critical points for paying willingness defined by the SA Group, subsequently further 90 divided into high, intermediate and low willingness. are suitable and applicable. Accordingly, the above analysis can be summed up as in the following Table 11. Table 11 Statistical Table of Paying Willingness of APs with Different Background Division of High Intermediate Low background paying willingness paying willingness paying willingness Wuming county, Shanglin county. Hexian Project area Binyang County Mashan county county Educational Senior or junior middle Primary school or College and Higher Level school below Family Annual 20001-30000, Less than 5000, 5001-10000 Income (RMB) Above 30000 10001-20000 Enjoyment of With government Without government governmental subsidies subsidies subsidiaries Head of enterprise, Head of public technician and institutions. assistant. head of Housewife. the Occupation office workers. business or service unemployed business/service worker. industry. equipment retirees operators Distance to sewage Far, very far Very near, near discharge outlet It should be mentioned that, as a social assessment, the SA Group has given adequate consideration to the paying willingness of the people in the project areas and conducted detailed investigation and analysis. However, the wastewater SUb-components of all counties under this project belong to the phase-I construction, the sewer pipelines must be connected to the existing "concrete culvert canals" for collection of wastewater. The APs would not be necessarily pay for the connection fee. As a long-term planning, the future residential areas are required to connect to the sewer pipelines, and so the individual AP would not be required to pay the connection fee. Therefore, this issue would not be overly sensitive. As for another type of wastewater dischargers --- big shops, hotels and restaurants, they produce wastewater as the common households. What makes it different is that such business dischargers use water for business purpose, so they produce much greater amount of wastewater. The major problem is the big water consumption. But to wastewater component, it does not cause big impacts. However. limited by the local economic development. there are not many such kind of shops in the five county towns. At interviews, the shop owners showed their willingness to connect with sewage network and try their best to protect the environment. In talking about the connection fee, they claimed 91 that they could not endure too high connection fee due to the macro economic situation such as inflation and weak consumption that led to the inferior business operation. At the counties, shop owners held common view that the connection fee of about RMB2000 is acceptable. In case of higher fee, they need the help from the government. In the project design, the wastewater component will collect the industrial wastewater from some enterprises. The local situation of the project areas is that enterprises bound to have wastewater treatment facilities will realize standard discharge after passing the environmental assessment. The EPBs indicate that effluents of the enterprises equipped with wastewater treatment facilities are not required to enter the WNTPs for treatment. In the interview meeting, the representatives of these enterprises also expressed similar views since they have been equipped with treating facilities. Therefore, they are not willing to pay the high amount of connection fee. The enterprises without wastewater treatment facilities should pay certain amount of wastewater discharge fee each year. The wastewater produced by such enterprises will be discharged into nearby rivers of the town after simple treatment such as sedimentation etc. County towns are the places of dense population. Therefore, there are only a small number of such enterprises, which mainly include agricultural products processing (e.g. sugar refinery, starch factory) and food production. These enterprises chose "Willing" or "Quite willing" for RMB 5000 connection fee depending on their distance from sewage network. To the enterprises and shop owners with wastewater treated in WNTPs, the most important thing is that under the premise of paying willingness, they should make the connection facilities to serve for their wastewater discharge and should fully discharge the wastewater into sewage network as it is supposed to be. 1.2 Paying willingness for wastewater tariff Computation of the paying willingness for wastewater treatment fee adopts the same principle and model (6-1) as that for connection fee. But the speCified amounts are different. In the questionnaires, the SA Group used the water price options suitable to the localities, including 9 levels, respectively: above RMB 61, RMB 41-60, RMB 25-30, RMB 21-25, RMB 16-20, RMB 11-15, RMB 6-10, below RMB 5. In input to the model computation, adopted the mean value of corresponding values. The highest and lowest values were respectively RMB 70 and RMB 2.5. After eliminating the invalid samples, totally 938 valid samples were used for computation for the model. The computation results showed that the average value of public paying willingness for wastewater tariff is RMB 44.86 monthly, of which, the standard deviation is RMB44.19, the maximum value is RMB245.55 and the minimum value is RMB 2.45. According to current water price of Nanning. city, computed as per RMBO.8/ton for domestic wastewater tariff, the average water consumption of per household will be RMB 56.075 tons per month. The Survey found that the average water consumption of per household was 18.44 tons per month in project area. The wastewater tariff willingly paid by the residents, according to the collected information, has by far exceeded the average water consumption per capita, approximately 3.04 times. Such indicated that the people of the project areas have very high willingness in paying the wastewater treatment 92 fee. According to the backgrounds of APs, the followings are the analysis for the paying willingness for wastewater treatment fee. (1) The paying willingness for wastewater tariff of APs in different project areas are obviously different. The average value of paying willingness of APs of Mashan county was the highest, being RMB 51.70, whilst that of Binyang county. a county of more developed economy, was the lowest. being RMB 39.02. At the same time. the paying willingness of APs of Binyang county was the most concentrated, and the interval span of 95% confidence interval was only RMB 11.61. Table 12 Summary of Paying Willingness for Wastewater Treatment Fee in Different Project Areas Project Average 95% Confidence Interval N Standard Deviation Areas value interval span Upper Lower limit limit Wuming 180 43.106 41.39594 37.0174 49.1945 12.1771 Bingyang 189 39.0231 40.43863 33.2206 44.8257 11.6051 Hengxian 183 45.8045 44.89833 39.2559 52.3531 13.09~ Shanglin 192 44.4155 48.33913 37.5344 51.2966 13.7622 Mashan 194 51.7039 44.74685 45.3675 58.0403 12.6728 Grand 938 44.8561 44.19424 42.0242 47.6879 5.6637 total F=2.094 (df=4) , p=0.08<0.1 (2) The impact of family annual income on the paying willingness for wastewater tariff has also passed the significant test (F=2.947, df=5, p=0.012<0.05) . The highest average willingness amount was RMB 56.16, from the families of over annual RMB 30000 income; the lowest average was RMB 39.50, from the families of annual income of RMB 5001 - 10000. The paying willingness for wastewater tariff seemed concentrating among the families of annual income of RMB 10001 -20000, with the interval span of only RMB 11.62 that was far less than the RMB 31.51 of group of over RMB 30000 annual income. Such, from another aspect, has reflected the serious situation of division between the rich and the poor. Table 13 Summary of Paying Willingness for Wastewater Treatment Fee in Different Project Areas in Terms of Annual Family Income 95% Confidence Family Mean interval Interval Annual N Standard Deviation Value Upper span Income Lower limit limit < RMB 5000 122 41.6066 47.92604 33.0163 50.1968 17.1805 RMB 155 39.4981 38.92256 33.322 45.6741 12.3521 5001-10000 93 RMB 180 40.5068 39.49918 34.6972 46.3164 10001-20000 RMB 83 41.1955 40.64015 32.3215 50.0695 17.748 20001-30000 > RMB 30000 51 56.1637 56.02004 40.4078 71.9196 31.5118 No idea 335 50.8413 46.06624 45.8904 55.7923 9.9019 Grand total 926 45.1456 44.36128 42.2846 ~ 5.722 F=2.947 (df=5) , p=0.012<0.05 (3) The paying willingness of the APs for wastewater tariff is in positive correlation with the education background. The higher the education is, the higher paying willingness will be. The slight difference was in the classification of college or university education, with average difference of only RMB 0.1 between the two groups. The highest willingness amount was from the group of college education, averagely RMB 47.65. There were not much differences among the groups of university or above education, college education and senior school education. The average value of group of secondary group was RMB 42.03, while the willingness amount of the group of primary or lower education, possibly attributed to the education background, was only RMB 25.76. The group of senior school education was still the most concentrated group for paying willingness. Table 14 Summary of Paying Willingness for Wastewater Treatment Fee in Different Project Areas in Terms of Education Background 95% Confidence Educational Mean interval Interval N Standard Deviation Level Value Lower Upper span limit limit College and 116 47.5172 45.03823 39.2341 55.8004 16.5663 Higher College 48.7461 40.4801 54.8194 14.3393 High school 44.95489 41.2581 50.8209 9.5628 Secondary ~ 216 42.0293 39.41141 36.7437 47.3149 10.5712 School Primary school or 36 25.7576 38.40876 12.762 38.7533 25.9913 below Grand total 890 44.7641 44.37907 41.8445 47.6837 5.8392 F=2.241(df=4) , p=0.063<0.1 (4) Assuming age (x) is an independent variable and the paying willingness (Y') is a dependent variable, the linear regression equation is established and thus forming the model 6-4. The model has passed the F test, and thus would be quite expressive. Y'=-0.677x+66.225 (F=26.257, df=1, p<0.001) 1-3 According to this model, increase of one year of age would result in a reduction of 94 RMB 0.677 of paying willingness for wastewater tariff. The older the people, the lower the paying willingness. Such may be attributed to the environmental consciousness of the young people. (5) Identification of the paying willingness of the people enjoying government's subsidies would, during project implementation, help give considerations to the interests of some vulnerable groups, especially those MLSS people. Similar to the paying willingness of connection fee, one-sided judgment of paying willingness would not be able to reflect the true face of the support given by the government. The survey showed that, the amount willingly paid by the people with government's subsides was RMB 25.16 higher than those without. The collection of the wastewater tariff from the groups with government's subsidies should be further analyzed comprehensively according to their affordability. Table 15 Summary of Paying Willingness for Wastewater Tariff of Different Groups with Different Government Subsidies Enjoyment of governmental N Mean Value Standard Deviation subsidiaries With government 56 68.9371 66.9857 subsidies Without government 860 43.7728 42.1739 subsidies t=4.141 Cdf=914) , p<0.001 (6) Occupation has significant impact on the paying willingness for wastewater tariff. Except the adult students, the highest willingness amount was from the heads of enterprises, averagely RMB 56.43 that was much higher than the overall average figure. The amounts of other occupations such as technicians and equipment operators also exceeded RMB 50. The lowest came to the retired people, being only RMB 32.44, followed by housewife and the unemployed. The starling fact to the SA members was that, the willingness amount of the heads and office clerks of institutional units was less than RMB 40, which may resulted from the fact they didn't pay wastewater treatment fee. The interval span of commercial/service people was the least, and the paying willingness of such occupations was the most concentrated. Table 16 Summary of Paying Willingness for Wastewater Treatment Fee in Terms of Occupations 95% Confidence Mean interval IntoNal Occupations Samples Standard Deviation I i Value Lower Upper span . limit limit Head of 28 39.9455 35.01689 26.3674 53.5237 27.1563 institutional 95 unit Head of 13 56.4288 54.57216 23.4512 89.4065 65.9553 enterprise Technical 68 50.1081 43.62423 39.5488 60.6674 21.1186 staff Office clerk or 67 38.4332 39.34314 28.8367 48.0298 19.1931 similar Head of commercial 90 44.2086 39.57512 35.9198 52.4975 16.5777 service Commercial 252 45.7322 43.36154 40.3526 51.1119 10.7593 service staff Equipment 14 50.3232 45.0892 24.2895 76.3569 52.0674 • operator The 150 38.1748 46.52074 30.6691 45.6805 115.0114 unemployed Retired 24 32.43a5T 52.24358 ~4991 44.1211 Housewife 53 35.4165 33.05438 26.3056 44.5274 18.2218 Student 145 59.554 50.26123 151.3038 67.8041 16.5003 Grand total 904 45.4197 44.5968 42.5086 48.3307 5.8221 F=2.761 (df=10) , p=0.002<0.01 (7) Distance to the sewer outlets was indifferent to the paying willingness for wastewater treatment fee. The reason for which may be attributed to the local geographical characteristics of advance water system. The people living in the city seem not much concerned about the distance to the sewer outlets. Wastewater discharge is not a problem to a family. Table 17 Summary of Paying Willingness for Wastewater Treatment Fee in Terms of Distance to Sewer Outlets Distance 95% Confidence to Average interval Interval I Samples Standard Deviation Sewage value Lower Upper span Outlets limit limit Very near 74 42.7213 53.46017 30.3356~07 24.7714 Quite near 144 43.3852 41.4537 36.5568 .2137 13.6569 Not near 2621 49.3918 45.2 43.8819 54.9017 11.0198 Very far 123 47.5321 50.88558 38.4493 56.6149 18.1656 No idea 293 43.3069 40.02948 38.7044 47.9095 9.2051 Grand 896 45.6304 44.6045 42.7059 48.555 5.8491 total Conclusion. The paying willingness for wastewater treatment fee of the APs is 96 identical to that for connection fee. Such can be illustrated more clearly in the following four curves. Although the paying willingness of the two fees of the project is a subjective cognition, it still reflects the stable statistical characteristics which, from other aspect, indicates that the "probability model for paying willingness" established by the SA Group is feasible and effective. Figure 1: Comparative Curves for Paying Willingness of Connection Fee and Wastewater Tariff in Different Project Areas Figure 2: Comparative Curves for Paying Willingness of Connection Fee and Wastewater Tariff in Terms of Education Background 97 • Figure 3: Comparative Curves for Paying Willingness of Connection Fee and Wastewater Tariff in Terms of Annual Family Income Figure 4: Comparative Curves for Paying Willingness of Connection Fee and Wastewater Tariff in Terms of Occupation J..~ '( ~> i .<. .<. ,. ~ :i f '~ Assuming the general mean of RMB 44.86 as the median value for the willingness amount of wastewater tariff, with a variation of +/- RMB 2.5, the boundary points of high, intermediate and low paying willingness are defined as the clarifying norms. Accordingly. as to the paying willingness for wastewater tariff, higher than RMB 47.36 shall be regarded as the high willingness, less than RMB 42.36 shall be treated as low willingness, while those between shall be treated as the intermediate willingness. Details are shown in the following table. 98 • Table 18 Summary of Willingness in Paying Wastewater Tariff of APs Background High willingness Intermediate willingness Low willingness Wuming, Hexian, Project area Mashan Bingyang Shanglin Junior middle College and Educational Level High school school, primary Higher school or lower 5001-10000, Family Annual 10001-20000, Above 30000 Income (RMB) 20001-30000, .> 5000 Enjoyment of With government Without government governmental subsidies subsidies subsidiaries Head of enterprise, Head of public techinician and institutions, assistant, Head of business service, office workers, Occupation operators of service worder the unemployed, production retirees and transportation housewife equipment, i students Distance to Very far, not near Very near, near discharge outlet As for the enterprises and shop owners with high water consumption, their paying willingness varies greatly depending on individual water consumption. The higher the water consumption is, the more impacts of wastewater treatment fee on water price and the lower willingness in paying would be. Owing to the rich water resources in Nanning, the enterprises and shops having low requirement on water quality would use river or lake water for business. The numerous natural drainage systems are also convenient for enterprises and shops to discharge wastewater. However, the local business and shops keeping the old discharging habit felt hard to accept the cost-added wastewater treatment. At interviews, such business and shop owners stated all kind of reasons and refused to connect with sewage network. Their excuses are: they did not cause any pollution and the recycled water needn't discharge etc. However, the significance of this Project lies in: trying to minimize the wastewater discharge that causes pollution to water quality. Therefore, more efforts should be made to well conduct the connection work of the enterprises and shops in the project areas. 2. Methods for collection of wastewater tariff and connection fee An appropriate method for collecting wastewater tariff is of great significance as to the collection work upon operation of the facilities. How to collect wastewater tariff will 99 • determine the computation of the affordability of local people hereinafter. Therefore, before analyzing the afford ability, we should firstly analyze how to collect the wastewater tariff. Under the existing system, three methods are given for wastewater tariff collection: (i) The most commonly seen method is the way currently applied by Nanning city, Le. wastewater tariff is collected along with the water price. Regardless of the purposes of water use, such as domestic use, business use and construction use, the wastewater tariff is collected according to the actual water consumption. This method of collection has good operability for the WWTP under the water company. (ii) The second method takes account of the majority daily life, i.e. collection as per the family members. This is based on the assumption that the wastewater produced by one person each month would be the same or similar in volume and quality, and as to the WWTP, no special treatment technology is required. However, the difficulty lies in the instability of the daily water consumption. This requires to accurately evaluate the actual water consumption and wastewater production rate, and then further assess the tariff rate. (iii) The wastewater treatment charges will be shared by the users after deducting the government's subsidies. The advantage of this method is to ensure that the WWTP will not incur losses. It is also good for the family of many family members. The weakness lies in the possible waste of water resources due to the equalitarianism. In questionnaire survey, the SA Group offered the three choices to the APs to make sure of their answers. 953 persons made the choices. Most people chose the first way, accounting for 75.1% of the valid samples. The choice for second or the third method accounted respectively for 10.1 % and 7.7%. Details are shown in the following Chart. What is the teasonable way for collection ofwastewa:et Iariff'? .,M 'lMt AttId,. _rrb., ••,})*,C'O-..n.ptitm .lfo"[jTo"u~ ....0",,_"" In combination with the public willingness and existing wastewater tariff collection method, it is feasible and reasonable to adopt the first method. Similarly, the methods for collection of connection fee should be more cautious. Such kind of fee is a lump-sum amount payable at one time but being benefited for years. As to 100 the local backward economy. excessive connection fee would be a burden to a family. According to the lAs, during construction of wastewater pipelines, the lAs would connect or intercept all the wastewater from the households, institutions and enterprises along the pipelines. The costs thereof will be fully covered by the lAs. However. due to different distances or existing conditions. those being unable intercepted into the pipelines or any new residential areas and enterprises shall connect their wastewater to the pipelines at their own costs upon approval by the relevant departments. During the interviews. another rather reasonable way of collection was found: mutually discussed between the government and the users. i.e. partially subsidies from the government. partially paid by the users. This method is found from the local working experiences. As for this project. this method is feasible because such method has reflected the core spirit of public participation and the rights of the public. 3 Affordability Affordability refers to the capacity of people of the project areas in paying the wastewater treatment fee. It can be measured through computing the proportion of water expenses in the resident's disposable income. However. the current measuring standards are still in disagreement. Due to the regional differences. the universal standards may be inapplicable to some specific districts. According to the academic research of the World Bank and some other international financing organizations, the proportion of 3% - %% of water expenses in family income would be feasible. In China, according to Report on Water Deficiency in Cities of China prepared by Ministry of Constructions in 1995, the proportion was suggested as 2.5% - 3%. Currently. some researchers hold the views that 6% can be used for appraisal (including water and sanitation). Compared with the report of 1995 of Ministry of Constructions. China has undergone dramatic changes. Nanning is not in shortage of water. the problem is water pollution. In China. the harmony between human being and the environment has become the government's strategiC policy for development. and thus water pollution control has already become a major issue for which much greater investments have been made than before. In consideration of the current socio-economic status and the international standard. the SA Group defined the affordability line of the urban residents as 3%. 3.1 Current water price of Nanning city According to the current water price system of Nanning city. RMB O.S/t of wastewater treatment fee will be collected along with the water price. In this project, it will be 3 increased to RMB 0.8/ m . According to relevant laws. such costs can be collected three years ahead of the completion of the wastewater treatment facilities. The water prices are shown in the following Table. 101 Table 19 Current Water Prices of Urban Area of Nanning City ---- Commissioned Price Unit (RMBI Collection of Gov. Wastewater Treatment Users Category Basic Water Price Total 3 m ) Water Resources Fee Tariff I. Domestic water users 1. One meter per household I Stage 1: monthly water consumption =32m31 RMB/m3 1.05 0.03 0.5 1.58 household ---- Stage 2: additional volume exceeding the RMB/m3 1.58 0.03 0.5 2.11 monthly water consumption of 32m3 2. Meter for collective unit RMB 1m3 1.05 0.03 0.5 1.58 II. Institutional water users RMB 1m3 1.14 0.03 0.5 1.67 III. Industrial water users 1. Industrial water RMB/m3 1.09 0.02 0.5 1.61 2. Low-quality RMB/m3 0.55 0.02 0.5 1.07 industrial water 3. Construction water RMB/m3 2 0.02 0.5 2.52 IV. Business I RMB/m3 1.64 0.03 0.5 2.17 service water users 3 V. Special water~sers RMB/m 3.6 0.03 0.5 , 4.13 102 .. Water prices of the counties covered by the project are slightly different as shown in the following table. Table 20 Current Water Prices of Project Counties Water Business I I Project Domestic water Industrial water for Construction water I Special We service water Areas users users public users users users i utilities i Wuming 1.25 1.3 1.7 1.25 -- 3 Bingyang 1.4 1.38 1.7 1.4 2.22 3.6 Hengxian 1.17 1.27 1.57 1.17 -- -- Shanglin 1.06 1.26 1.26 1.06 -- -- Mashan 1.2 1.3 2.1 1.2 -- -- Notes: (i) Nanning city is promoting the water price reform to strength the environmental protection. He 3 increase the water price to RMB 1.4 I m , while Mashan county will increase to RMB 1.8 1m3. Other countie~ the water price but no substantial action has been taken. (ii) u __n stands for no specified water price; constrw as per industrial water. 3.2 Affordability of the towners of project areas. The indices for computation of residents' affordability of Nanning city are from this survey questionnaire, institutional interviews and statistical year-books. The monthly water consumption and average family members are from this social survey. Because this survey was conducted in summer, this value is higher than the average figure of the whole year. The determination of water price in the project counties is the sum of the current water price and the proposed RMB 0.8 I m3. As for the counties with proposed increase, the increased figure is adopted. The product of multiplication of annual water consumption and the water price is the annual water expenses. The resident's per-capita annual average income is from Statistical Yearbook of Nanning City 2007, from which, the figure was of 2006. Residents household annual average income is the product of multiplication of per-capita annual average income and the average family members. The formula for computing the proportion of water expenses in annual family income is: Annual family water expenses I resident's household annual average income * 100%. The results are as the follows: Table 21 Statistical Table for the Affordability of Common Urban Residents in Project Areas Annual Towners' Average Towners' Monthly water IAnnual water Water Project expenses per-capita members per consumption I consumption price with wastewater Areas on water average of household (ton) (ton) tariff (RMBIT) I i (RMB) annual household average 103 income annual (RMB) income' (RMB) ing 12.39 148.68 2. 05 1 304.794 8798 4.25 37391.5 16.52 198.24 2.2 436.128 8851 4.57 40449.07 Hengxian 20.22 242.64 2.2 533.808 8635 4.6 39721 Shanglin 23.7 284.4 1.86 528.984 7405 4.53 33544.65 Mashan 18.44 221.28 2.6 575.328 7120 4.52 32182.4 According to the table, the highest proportion is 1.79% in Mashan county, the lowest is 0.1 % in Binyang county. As to the common residents in towns, the water prices of all project areas are acceptable. The citizens of Nanning city has the full capacity in paying the wastewater tariff. Such situation is slightly different as to the urban MLSS population. According to the existing subsidiary policy of Nanning city, the minimum standard is RMB 180-260 per capita each month, based on which, the annual income of urban MLSS is calculated. Water price is calculated according to preferential policies for urban MLSS, following the principle of half reduction for wastewater treatment fee and 90% of water tariff. The water consumption of MLSS family is less than that the common family, which was also proved by the survey, i.e. approximately 6T less. The reason is that, the MLSS has lower sanitary demand, and thus cleaning water consumption is less. Therefore, in calculating the water consumption, the SA Group adopted a conservative figure (6T less). The actual water consumption would be more less. The final water expenses proportions are shown as follows: Table 22 Statistical Table for the Affordability of MLSS Population in Project Areas Urban Urban Proport MLSS' MLSS' per ofwatl Annual Average Monthly water Annual water per-capita household expens Project Payable water expenses members consumption consumption average average infami Areas price (RMB/t) on water of (ton) (ton) annual annual annuli (RMB) household income income incom (RMB) (RMB) (%) Wuming 6.39 76.68 1.525 116.937 2400 4.25 10200 1 . Bingyang 10.52 126.24 1.66 209.5584 2640 4.57 12064.8 Hengxian 14.22 170.64 1.66 283.2624 2640 4.6 12144 2 Shanglin 17.7 212.4 1.354 287.5896 2160 2 Mashan 12.44 149.28 2.02 301.5456 2160 The computation results show that the affordability of MLSS population of the five project areas is a bit higher than that of the common people but lower than 3% of 104 international standard. Shang lin and Mashan counties are economic underdeveloped area among the project areas. But it is still acceptable that the proportion of water tariff in family annual income is approximately 3%. This shows that these APs of project areas have the ability to pay the wastewater treatment fee. During the computation, some families are supposed to be completely consisted of MLSS recipients. Such families are not common. With the economic development, some of the MLSS recipients will get a job and get rid of this community. In addition, local MLSS subsidies will increase along with the social development. Therefore, the actual affordability of the urban MLSS recipients is expected to be better than the computation results. In the project areas, a small amount of agricultural population share equal incomes with the urban population. Therefore, no separate computation will be conducted for such agricultural population. Their affordability can be referred to that of the common urban residents. Conclusion: The affordability of the common urban residents in project areas is quite high. The afford ability of urban MLSS population, except for Mashan and Shang lin counties, is far lower than 3%, the measurement standard. Therefore, the proposed RMB O.B/t wastewater treatment fee is feasible. However, the affordability varies greatly in different project counties. Taking all factors of the project areas of the public paying willingness, affordability and wastewater collection methods, the SA Group cited that in collection of wastewater tariff, different methods should be adopted according to different groups of people in the project areas. Although the wastewater tariff proposed in Project Proposal is affordable by the majority people who also have high paying willingness. However, during collection, special considerations should be also given to different groups of people. In addition, wastewater tariff levied according to the actual water consumption of individual family was determined according to the actualities of the project areas, which is quite operable. The enterprises without WWTP and the shopping malls with huge water consumption showed very low paying willingness due to deteriorated economic environment. The affordability of these units varies greatly due to the business engaged and the size of enterprises. However, they showed agreement to the collection of wastewater treatment fee based on actual water consumption. Following the design conception of "cost compensation, marginal profit", it can be concluded that, RMB O.BIT of wastewater treatment tariff is feasible and affordable by the majority people of the project areas. However, during collecting wastewater tariff, special considerations should be given to the MLSS population in the project areas of Mashan and Shang lin counties 105 Appendix 3: Agenda of SA Group Date Activity Schedule Interviews at preliminary stage: preparing questionnaire and August 1-10, 2008 outline for interview On early morning of SA group's arrival at Nanning August 11,2008 (1) Interview with GLWCL, one of lAs, arrived at Hexian WWTP On afternoon of sub-com ponent area for field survey; (2) Conducting August 11, 2008 questionnaire survey. Revision of questionnaire and interview outline according to August 12, 2008 survey contents, and preparing questionnaire directory handbook. (1) Interview with 3 heads of Nanning Ethnic Minority Commission; 1 head of Nanning Statistics Bureau and two heads August 13,2008 of Nanning Poverty Reduction Office; (2) purchase of Nanning Statistical Yearbook 2007. (1) Interview with 1 section chief of Nanning Urban Basic Living Allowances Section; the head of Nanning Public Health Bureau and 3 experts of public health and disease; 2 heads of Nanning August14,2008 Environment Protection Bureau. (2) Training of 30 questionnaire surveyors from Guangxi University of Finance and Economics. (1) Interview with 2 heads of Nanning Inland River Administrative Department, the IA of Fenghuangjiang River Eco-environmental Upgrading Su-component; (2) 6.65 km walk August 15, 2008 along Fenghuangjiang river for field survey; (3) Interview with Fude Villagers' Committee and three households; (4) Interview with 3 households of Nanxiang Village. (1 ) Interview with Nanning Yongjiang Dyke Construction Development Company Ltd., the IA of Liangqinghe River and Lengtangchong River Eco-environmental Upgrading August 16, 2008 Subcomponent; (2) Field survey of project impacts on the riverside areas; (3) Interview with a head of the residents' committee of Liangqing District; 1 household of Liangqing Village and 1 household of Sulinpo village. (1) Collection of the documents on social investigation of Nanning minorities; 5 volumes of Historical Survey of Guangxi August 17, 2008 Zhuang Minority; (2) Establishment of data base for questionnaire survey. On morning of Discussion meeting with institutions of Hengxian county, totally 5 106 • August 18, 2008 participants, respectively 1 vice director of the Environment Protection Bureau, 1 vice CPC secretary-general of the public health bureau, 1 head of poverty reduction office, 1 section chief of the civil administration bureau and 1 section chief of civil affairs bureau. Collected the project-related data of the institutions. Discussion meeting with enterprises of Hengxian county, totally 10 persons, respectively one from the following units: the On afternoon of butchery, Xincheng tannery, Wanlilong Leather Company, August18,2008 Yuejiang Hotel, Gaoneng Automobile Repair Plant, Molihua Hotel, the tender factory, Dongmeng Building Material Company Ltd. Questionnaire survey on public paying willingness and August 18, 2008 affordability of Hengxian county, samples of 200 copies. Discussion meeting with institutions of Shanglin county, totally 5 persons, respectively 1 vice director of civil affaires bureau, 1 On morning of vice CPC secretary-general of the civil administrative bureau, 1 August 19, 2008 vice director of public health bureau, 1 vice director of environment protection bureau and 1 director of water works. Discussion meeting with enterprises of Shanglin county, On afternoon of respectively 1 head of Telecommunication Hotel and 1 head of August 19,2008 cement works. Discussion meeting with Nanning ASEAN On morning of Economic Development Zone, totally 4 persons, respectively 1 August 19, 2008 social affairs bureau and 3 heads of environment bureau. Discussion meeting with enterprises of the development area, totally 6 persons, respectively 1 head of Guangxi Guangming On afternoon of Pharmaceutical Co. Ltd., 2 heads of Guangxi Tianyuan August 19, 2008 Bio-chemical Co. Ltd., 1 head of Guangxi Heiniu Dairy Co. Ltd., 1 head of Pattaya Hotel, 1 head of Guihua Starch Mill. Questionnaire survey on public paying willingness and August 19, 2008 affordability of Wuming and Shanglin counties, respectively samples of 200 copies. Sorting of interview data and summarizing the discoveries of August20,2008 preliminary social assessment. Discussion meeting with institutions of Mashan county, totally 6 persons, respectively 1 director of poverty reduction office, 1 On morning of director of civil affaires bureau, 1 director of environment August21,2008 protection bureau, 1 CPC secretary-general of the civil administrative bureau, 1 head of water works and 1 vice director of public health bureau. Discussion meeting with enterprises of Mashan county, totally 4 On afternoon of persons, respectively 1 head of sugar mill, 1 official of Hanbang August 21,2008 Cement works, 1 head of the Hostel of Armed 107 • Forces Department, 1 head of Zhongtian Hotel. Discussion meeting with institutions of Bingyang county, totally 7 persons, respectively 1 director of poverty reduction office, 1 director of civil affairs bureau, 1 head of religious bureau, 1 vice August 21, 2008 director of environment protection bureau, 1 vice director of civil administrative bureau, 1 head of water works, 1 vice director of public health bureau. Questionnaire survey on public paying willingness and August 21, 2008 afford ability of Mashan and Bingyang counties, respectively samples of 200 copies. August 22, 2008 Recording collected data August 23,2008 Recording questionnaires. August 23 to September 20, Compiling, revising and perfecting social assessment report. 2008 108 f Appendix 4: Themes and Viewpoints of Discussion Meetings Type of meeting Theme for discussion Data collection 1. The situation of local 1. At municipal level: The viewpoints, minorities; proposals of the heads of the following 2. The situation of local institutions: Ethnic Minority urban and rural MLSS Commission, Urban Basic Living population; Allowances Section of Labor and 3. The indecencies of Social Security Bureau, Public Health local water-born diseases Bureau, Environment Protection and the relation with the Bureau. The project impacts on work Project. division of the institutions. Discussion 4. The situation of river 2. At county level: The viewpoints and meeting with environment proposals of the heads of the following government and wastewater discharge institutions: Civil Affairs Bureau, institutions of local enterprises. Poverty Reduction Office, Civil 5. Comments and Administrative Bureau, Public Health suggestions on the water Bureau, Environment Protection price, methods of collection Bureau and Water Supply Company. and collection The project impacts on the work of wastewater tariff. division of the institutions. 6. The other data relevant 3. The heads of institutions show their to social impact own attitude to the Project and assessment of the proposals. Project. 1. The environment protection consciousness and attitude of the work unit; 2. The wastewater treatment capacity of the work unit; 3. The wastewater discharge of Discussion the work unit; meeting with Data concerning the 4. The paying willingness and entrepreneurs themes of discussion. affordability of the work unit for pipeline and shop owners connection fee. 5. The paying willingness and affordability of the work unit for wastewater treatment fee. 6. The production scale and annual profits the work unit. 109 Appendix 5: Public Questionnaire on Wastewater Treatment Component Questionnaire 10:____ Signature of Surveyors: Wastewater Component of Nanning Urban Environment Project Questionnaires on Paying Willingness and Affordability Dear Citizens, How are you. Entrusted by the Municipal Government of Nanning City and the World Bank, the Social Assessment Group of Nanning Urban Environment Project is conducting a survey on the paying willingness and affordability of the wastewater component under this project. Your answers are very important to us. The result of this survey will serve as one of the basis for making decision of Nanning Urban Environment Project. You are kindly required to answer the questions patiently and reflect your true ideas. Your answers will be kept confidential. The total interview will take about 20 minutes. The questionnaire has A. 8, C and D four parts. Please read carefully and make your choices. Please tick your choices by marking "v" in the blanks or write down your answers on"__ Thank you for your support and cooperation. General Office, the People's Government of Nanning Municipality SA Group, Nanning Urban Environment Project August 2008 110 Part A Environmental situation and environmental consciousness [A1] In your opinion, how serious are the following environment issues in your area? (Please check the boxes) Very Not very Environmental Issues Serious No problem No idea serious serious 1. Vegetation destruction 2. Solid Waste 3. Air pollution 4. Water and soil erosion 5.Domestic wastewater 6. Industrial wastewater 7. Riverllake pollution 8. Ground water pollution 9. Storm-water I flood discharge 10. Flood damages 11. Noise pollution [A2] In your opinion, how serious do the following factors have impacts on the above-mentioned environmental issues? Very light ht Heavy Very heavy Infective factors impacts impacts impacts impacts 1. The government attaches importance to economic development whilst ignores environmental protection 2. Unsound environmental laws and regulations 3. Unsatisfied governmental supports to environmental protection enforcement. 4. Insufficient governmental investment in pollution treatment 5. Overheated social 111 economic development 6. The rocketing consumption 7. The enterprises' profit-oriented production without caring about environmental protection. 8. The public's poor environmental consciousness 9. Not enough public participation in environmental protection 10. The natural reason e.g. too much rain in summer. 11. Excessive population growth 12. Environmental pollution and destruction in the surrounding area. [3] In your opinion, how harmful is environmental pollution to your health? 1. Very harmful 2. Harmful 3. Light harmful 4. Little harmful 5. No harmful 6. No idea [4] According to your knowledge, what diseases belong to local water-borne diseases? 1. Skin diseases 2. Intestinal diseases (e.g. diarrhea) 3. Gynaecologic diseases 4. Typhoid 5. Hepatitis A 6. Leptospirosis 7. Lithemia 8. No water-born diseases 9. No idea [5] In your opinion, what is the relationship between economic development and the environment? 1. If only economy develops, the environment can be destroyed 2. The environment can be destroyed, but should be moderate. 3. Protect environment, stop economic development 4. Coordination between environmental protection and economic development 5. Develop economy first followed by environmental treatment 6. No idea [6] Do you think that the surrounding environment needs improvement? 1. Ves 2. No [7] In your opinion, should people constrain their environmental protection 112 performance? 1. Yes 2. Don't care 3. No [8] Do you think that the government has the ability to improve wastewater treatment? 1. Yes; 2. No [9] Should the government enforce the investment in grand environmental protection? 1. Yes 2. Don't care 3. No [10] Have you ever discussed with your relatives or friends about environmental protection? 1. Often 2. Occasionally 3. Never [11] In order to protect the environment, is it necessary to self-establish environment protection association? 1. Yes 2. Don't care 3. No [12] According to your knowledge, has the government ever conducted the activities of environmental protection? 1. Yes 2. Never [13] Have you ever participated in the activities of environmental protection? 1. Yes 2. No [14] If someone spits on the ground, what should you do? 1. Stop him 2. Blame him, but do not stop him 3. Pretend not seeing 4. Don't care, I do the same myself. [15] If a factory nearby your house discharges wastewater into the river and sends terrible smell, what should you do? 1. Let it be 2. Move away 3. Negotiate with the heads the factory 4. Seek for help from environmental department 5. Complain to the public media 6. Wait till later 7. Others [16] What do you think of the future of local environment? 1. Get better and better 2. Not much change 3. Worse than now 4. No idea Part B Present family water consumption [81] What are the water sources of your family (such as drinking water, water for washing clothes etc.) [multiple choices] 1. Bottled water 2. Tap water 3. Well water (self-preserved) 4. Pond 5. Others [82] Have your family stalled the water gauge? 1. Yes; 2. No [83] If water gauge was installed, does it work well? 1. Yes 2. No 3. No idea [84] How much water does your family use per month? ______ton/month (if you don't know, empty the answer) [85] Does your family pay for water consumption? 1. Yes 2. No (3) No idea [86] How much money does your family pay for water consumption? Y/month [87] The current water price to your family is: 1. Too high, unaffordable 2. High, but still affordable 3. Moderate 4. Low, totally affordable 5. Not cost much 6. No idea [88] Is the wastewater discharged by your family retreated by the county WWTP? 1. Yes 2. No 3. No idea 113 [B9] Does your family pay wastewater treatment fee? 1. Yes 2. No (then answer 811) 3. No idea (then answer Part C) [B9.1] If your family pays wastewater treatment fee, then how much is it monthly? Y/month Part C Public Participation and Paying Willingness [C1] Are you satisfied with the current wastewater treatment facilities? 1. Always satisfied 2. Satisfied for most of the time 3. Satisfied sometimes 4. Never satisfied 5. No idea [C2] Wastewater treatment system can purify wastewater and prevent pollutants from entering into the river. Do you hope to construct wastewater treatment facilities in your county (area)? 1. Very much hope 2. Hope 3. Slightly hope 4. Don't hope 5. No idea [C3] What channels do you wish to get some information about the construction of wastewater treatment facilities? 1. TV, broadcast, newspaper & internet 2. Notified by governmental department (inclu. Village committee) 3. Told by relatives and friends 4. Told by neighbors 5. Knew by this Survey 6. Other, (specify):______[C4] Is the construction of wastewater treatment facilities important to your family? 1. Not important 2. A bit important 3. More important 4. Very important (5) No idea [CS] Do you support the implementation of wastewater treatment component? 1. Yes 2. No 3. Don't care [C6] If you have some suggestions or complains to this Project, who would you turn to? 1. Governmental department 2. Sub-district office/residents' committee 3. Neighbor 4. lAs 5. Others, (specify): ______[C7] If a meeting concerning with the Project is held, who of your family will attend? 1. The senior 2. The junior 3. Myself 4. Spouse 5. Others (Specify) [Cal According to the government laws, paying wastewater treatment fee is compUlsory. How much are you willing to pay the fee per month? Please check the boxes. Very Payment per! Very quite Quite willing willing much month much willing unwilling unwilling RMB 61 and above RMB 41-60 RMB 31-40 RMB 2S-30 114 RMB 21-25 RMB 16-20 RMB 11-15 RMB 6-10 BelowRMB5 [C9] In your opinion, how to collect the wastewater treatment fee? 1. Based on family members 2. Based on actual consumption 3. Share the expenses by all households 4. No idea 5. Other (please specify) [C10] So far, has the wastewater treatment system been connected to your family? 1. Yes, 2. No 3. No idea [C10.1] If connected, who do you think should pay the connection fee (from your family to pipeline interface)? 1. Government 2. Self-payment 3. The attachment without any paying (such as residential area of work unit, commercial houses) [C10.2] If without connection, how much fee do you think it acceptable? Very Connection Very quite QUite willing willing much fee much willing unwilling unwilling RMB 1500 and above RMB 1200-1500 RMB 900-1200 RMB 600-900 RMB 300·600 Below RMB300 Part D Family Status of Individual Interviewee [01] Sex: 1. Male 2. Female [D2] Age: Years old [03] Nationality: 1. Zhuang 2. Han 3. Yao 4. Hui 5. Miao 6. Dong 7. Mulan [D4] Education: 1. University and above 2. Junior college 3. Senior middle school 4.Junior middle school 5. Primary school and below [D5] Your address: ____County (area) _____ town ( street) [D6] Occupation: 1. Head of governmental institution 2. Entrepreneur 3.Technician and assistant 4. Office clerk 5. Head of business and service 6.Business server 7.0perator of equipment 8. The unemployed 9. Retiree 10. Housewife 11. 115 Student [07] Are you the head of your family? 1.Yes 2.No; [08] How many adults do you have in your family (=18 years old) Persons. [081 How many minors do you have in your family « 18 years old) Persons. [010] What was the total income of your family in 2007? 1. Less than RMB5000 2. RMB 5001-10000 3. RMB 10001-20000 4. RMB 20001-30000 5. More than RMB 30000 6. No idea (or not knowing how to answer) [011] What about your family income if compared with your neighbors? 1. Very good 2. good 3. so-so 4. Bad 5. Very bad [012] Does your family enjoy family subsidiaries, such as MLSS or poverty reduction subsidiaries by the civil administrative bureau? 1. Yes 2. No [012] If yes, do you know the preferential policies on water price and wastewater treatment fee? 1. Yes 2. No 3. No idea [012.1] Then, does your family enjoy these preferential policies? 1. Yes 2. No [013] How much in total were the daily expenses of your family last year? ___RMB/year (excluding expenses for housing and other irregular expenses) [014] Among these expenses, how much do you spend on food (including cigarette and drinking etc. )? __Y/month [015] Do you have your own house or rent house? 1. My own house 2. rent house [015.1] If you rent house, who pays the water price, you or your landlord? 1. me 2. landlord [016] What are the medical expenses of your family each year? ____yuan/year [016] How much do you spend on education each year? ____yuan/year [018] How far is your house from the effluent? 1. very near 2. near 3. not very near 4. very far 5. no idea [019] Please give your suggestions on the wastewater treatment component that aims to improve the surrounding environment. ______ To guarantee the completeness of the questionnaire, please check your answer to see if there are any questions unanswered. Thanks again for your cooperation and support. 116 ... Appendix 6: Outline for Interviews with Enterprises and Shop Owners Introducing project profile to the interviewees, define the contents for interviews and then start the interviews. Present environmental situation 1. In recent years, what do you feel about the local environmental situation? 2. In your memory, were there any serious pollution accidents happening in the nearby area of the enterprises? 3. What do you think about the local water quality? 4. Does your area often suffer from flood? In your opinion, what are the causes? Industrial wastewater treatment 5. Has your unit installed any wastewater treatment facilities? 6. What are the working conditions of these facilities? 7. How much does it cost for treatment of 1 ton of wastewater? 8. Are you willing to connect to the wastewater treatment network of the county? Why? Participation 9. What is the view of your unit on Nanning Urban Environment Project (NUEP)? 10. In what way do you participate in this Project? 11. If this Project requires a small amount of charges, are you willing to pay? 12. Do you have any demands on the implementation and operation of this Project? Enterprises situation 13. What are the main products of your enterprise? 14. What is the annual sales amount? 15. How much wastewater treatment fee is acceptable to your unit? 117 Appendix 7: Outline for Public Structure Interview Introducing project profile to the interviewees, define the contents for interviews and then start the interviews. Present environmental situation 1. In recent years, what do you feel about the local environmental situation? 2. In your memory, were there any serious pollution accidents nearby? 3. How to solve the drinking water problem of your family? 4. What do you think about the local water quality? 5. Does your area often suffer from flood? In your opinion, what are the causes? Ethnic Minorities 6. Do you think Nanning Urban Environment Project will have impacts on your life? 7. If yes, how? 8. In your opinion, what measures should be taken to prevent the Project from disturbing your life? Women 9. Who is the decision-maker for big affaires in your family? 10. If something important happen in your family, what do you do? 11. If a discussion meeting be held, will you participate? 12. In what way will you participate in the NUEP? 13. In your opinion, what advantage or disadvantages will be brought about by the Project? 14. In your opinion, what aspect of the Project should be strengthened? Poverty 15. What is your life now? 16. Do you think that the Project implementation will offer you jobs and add your incomes? 17. After the project completion, what measures will you take? Resettlement 18. So far, what are your main economic sources? 19. Do you live in your own house or rent house? What is the annual cost? 20. How do you get along with your neighbors? 21. Will the project implementation improve or spoil your life? 22. After resettlement, what measures will you take to restore your livelihood? Participation 23. What is your view on Nanning Urban Environment Project (NUEP)? 24. In what way will you participate in this Project? 25. If this Project requires a small amount of charges, are you willing to pay? 26. Do you have any demands on the implementation and operation of this Project? 118