SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

OF THE

SHENMU-YANAN RAILWAY PROJECT

IN THE

PEOPLE’S REPUBLIC OF

October 1996 CURRENCY EQUIVALENTS (1 September 1996)

Currency Unit — Yuan (Y) Y1.00 = $0.1200 $1.00 = Y8.336

As of 1 January 1994, the PRC’s dual exchange rate system was unified. The exchange rate of the yuan is now determined under a managed floating exchange rate system.

ABBREVIATIONS

BOD - Biochemical Oxygen Demand EIA - Environmental Impact Assessment FSDI - First Survey and Design Institute MOR - Ministry of Railways PRC - People’s Republic of China SEIA - Summary Environmental Impact Assessment SPPC - Province Planning Commussion SXRC - Shaanxi Xiyan Railway Company TSP - Total Suspended Particles

WEIGHTS AND MEASURES

ha - hectare m - meter m3 - cubic meter mg/l - milligram per liter mg/m3 - milligram per cubic meter kg - kilogram km - kilometer

NOTES

(i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this Report, ”$” refers to US dollars. CONTENTS

Page

MAP 1: Railway Network in the People’s Republic of China (PRC) MAP 2: -Yanan Railway Project in the PRC

A. Introduction 1

B. Description of the Project 1

C. Description of the Environment 2

D. Anticipated Environmental Impacts and Mitigation Measures 3

E. Alternatives 10

F. Cost-benefit Analyses 10

G. Institutional Arrangement and Environmental 11 Monitoring Program

H. Public Involvement 12

I. Conclusions 12

Appendixes A. Introduction

1. The Government of the People's Republic of China (PRC) has requested for assistance from the Asian Development Bank (the Bank) for financing the construction of the Shenmu-Yanan Railway Project (the Project). This summary environmental impact assessment (SEIA) is intended to identify and evaluate environmental impacts during the implementation and operation of the Project and ensure that related environmental management measures are adequately considered and incorporated in the Project. The environmental impact assessment (EIA) report for the Project was prepared by the First Survey and Design Institute (FSDI) of the Ministry of Railways and has been approved by the PRC's National Environment Protection Agency on 30 August 1995. This SEIA is based on the EIA which was reviewed by the consultants,1 and other baseline environmental data.2 This SEIA is prepared in accordance with the Bank's requirements and format. The results of the environmental examination are summarized in Appendix 1.

B. Description of the Project

2. The proposed new railway line between Shenmu and Yanan (see Maps 1 and 2), with a length of about 386 kilometers (km), will traverse Yulin and Yanan prefectures in Province. The proposed railway line will be connected with two existing railway lines at Shenmu and Yanan, and will complete the missing link in the north-south corridor between Xian, capital of Shaanxi Province, and Baotou, in . The Project is planned to be completed in five years, from 1997 to 2002. The Shaanxi Xiyan Railway Company (SXRC) will be the Executing Agency for the Project. The total Project cost is estimated at $870.0 million.

3. The proposed railway is a single track with the standard gauge (1.435 meters [m]). The width of the corridor averages about 30 m. Between Shenmu and Yanan, 26 stations will be constructed. Construction of three long tunnels (Sizehe 5,360 m, Yangmahe 3,830 m, and Guanhupo 3,190 m) will be the most time-consuming aspect of the Project. Diesel locomotives with a 2,430 kilowatt power rating will be used. During the earlier years of operation, freight traffic is forecast to increase from about 8.3 million tons in 2003, to 34.8 million tons in 2010, equivalent to an average annual growth of 22.7 percent. In subsequent years, overall annual traffic growth rates are projected to be lower, with traffic rising to about 40.3 million tons in 2015 and 43.9 million tons in 2022. Coal is estimated to constitute about 70-80 percent of the total freight traffic. Annual passenger numbers are forecast to increase from about 2.1 million in 2003 to about 8.6 million in 2022.

4. Despite abundant natural energy resources of coal, oil, and gas, the economic development of northern Shaanxi Province has lagged because of the lack of infrastructure, particularly transport facilities. Completion of the new railway will provide an economic and environmentally friendly means of transport for natural resources, particularly coal, and will promote efficient economic growth and poverty reduction in a relatively underdeveloped area of Shaanxi Province. Although railways are generally considered an environmentally friendly

1 Engaged under Bank-financed PPTA No. 2325-PRC: Shenmu-Yanan Railway Project. The consultants were from Japan, United Kingdom, and United States. 2 Reference was made to the geographic information system and baseline environmental data collected under the Bank-funded TA 1615- PRC: Monitoring and Management of Fragile Ecosystem in , Shaanxi, and Inner Mongolia, for $600,000, approved on 27 November 1991, and completed in August 1994. transport mode, some adverse impacts are likely on the natural and social environment during the construction and operation stages.

C. Description of the Environment

1. Physical Resources

5. The area to be traversed by the new railway line has special geological conditions and weak ecosystems. The salient physical features of the area include the Maowusu Desert and the transition belt between the desert and the northern Shaanxi Loess Plateau, which is interspersed with hills and gullies that form a part of the system. The terrain of this area is roughly divided into two main segments, a Shenmu-Yulin portion and a Yulin-Yanan portion. The former segment is mostly on Maowusu sandy desert with a relatively fluctuating landform having height differences of 20-150 m. The land surface is widely covered with Holocene aeolian fine sand and silt, with sand thicknesses varying from 2 to 10 m. There are also, to some extent, Pleistocene alluvial and lacustrine clay soils and sands with thicknesses between 10 and 15 m.

6. The Project area belongs to mesotemperate and semi-arid climate zones, with the obvious features of continental monsoon climate. Desert climate features are found in the north of Yulin: cold in winter and hot in summer with temperature changing rapidly while very windy and sandy in winter and spring with strong evaporation and concentrated scarce rainfall. Toward the south of Yulin, the rainfall gradually increases and the wind strength decreases.

7. Soil erosion caused by wind is a problem throughout the desert area, which covers the upper and middle sections of the drainage basin of three major tributaries of the Yellow River, i.e., the Wudinge, Kuyie, and Tuwei rivers. The latter segment traverses two types of landforms, river valleys along the Yuxi and Wudinge rivers and the Rutianshan and Maotianshan mountain ranges with peaks of 1,340 m and 1,405 m, respectively. The proposed railway line will traverse river valleys in the relatively flat section between Yulin and Suide. On the section between Suide and North Yanan, the railway will pass through two mountain ranges and a large number of tunnels, the longest being Sizehe 5,360 m. Soil deposits in this segment are mainly composed of loess sandy clay and loessal sandy ravine, both of which are vulnerable to soil erosion caused by wind and rainfall.

2. Ecological Resources

8. As characterized by the climate, the vegetation on this relatively barren area is classified as semi-arid. The forests in the Project area are mostly artificial. In the north, shrubs are the dominant afforestation tree species. In the south, trees such as polar, willow, oak and pine are the dominant afforestation species.

9. In Shenmu County, there is a sabina vulgari nature reserve with an area of 7,666 hectares (ha). Sabina vulgari, also called sand cypress, belongs to evergreen shrub cypress family. It plays an important role in fixing sand and improving soil structure, and is an ideal species for afforestation in the windy and sandy semi-arid area.

10. The railroad alignment will generally pass through unpopulated areas. There is no large wildlife. Fauna consists of small wild animals such as rats, hares, yellow weasels, and hedgehogs. There is no endangered species or wild animal nature reserve along the alignment. 3. Human and Economic Development

11. In 1994, the total population of the prefectures through which the Project railway passes was 4.32 million, accounting for 12.4 percent of the population of the province, with a population density of 71 persons per square kilometer. The natural population increase rate was 1.18 percent, slightly higher than the provincial average of 1.11 percent.

12. Farming is mainly conducted in afforested land in the Project area. Afforestation efforts have contributed significantly to transforming the area from barren sand to cultivable land. Many agricultural crop fields are near the proposed railway line particularly in the section between Yulin and Suide. Further south in the mountainous area, crop fields are found even in the terraces in the middle of mountains. The main crops are maize, wheat, corn, and beans. Animal husbandry is also important in this region.

4. Quality of Life Values

13. The rural population in the Project railway influence area is largely dependent on an agricultural system of low productivity and suffers from relatively low levels of socioeconomic development. The present inadequate transport system inhibits effective economic growth and poverty reduction efforts. There are no important aesthetic, archeological, or historical resources that would be affected by the Project railway. Although the Project railway line will cross the line of the Great Wall, no remains of the Great Wall are found at the point of crossing; consequently, the Project is considered to have no impact on the Great Wall.3 Other cultural properties along the railway line are sufficiently far away to be unaffected by the Project.

D. Anticipated Environmental Impacts and Mitigation Measures

14. Particular attention has been given to the environmental parameters most likely to be affected by the Project. Considering the fragile geological and ecological characteristics of the Project area and the presence of local inhabitants and sensitive receptors (such as schools and hospitals) along the planned railway alignment, the environmental parameters most affected include noise pollution affecting sensitive receptors and local inhabitants, soil erosion and siltation, and human resettlement. Other affected environmental parameters include air quality, terrestrial ecology, water quality and aquatic ecology, and cultural/historical/archeological properties.

1. Noise and Vibration

15. The assessment of noise impacts caused by the Project involves examining existing noise levels and noise level modeling to forecast future noise levels, and noise generated during construction. The modeling results were compared to the noise level standards set by the Government. Existing noise levels were monitored at 21 locations near the proposed railway line. The site to be measured was selected with particular attention to the inclusion of sensitive areas such as schools and hospitals. The noise levels monitored were 24-hour equivalent sound levels and day-night sound levels. The measurement locations included 7 spots near Yulin and Yanan railway stations and 14 spots between 45 planned railway stations. The distance between the edge of the railway and the location of noise receptors and the results of the monitoring are presented in Appendix 2. The results of the monitoring revealed that the noise levels generally fall into the range of 40-60 decibels (dB) during the daytime and 35-45 dB at night. At these 21

3 In this area, the Great Wall was constructed with consolidated earth, which has disintegrated. selected noise receptor locations, forecasts of noise levels caused by train operation were prepared. The forecast noise levels vary depending on the distance between the railway line and the locations of the noise receptors. The existing and forecast noise levels are summarized in Table 1.

Table 1: Summary of the Existing and Forecast Noise Levels

Location Existing Level (dB) Predicted Level (dB)

Near Stations (Day) 35 - 55 55 - 60 Near Stations (Night) 33 -38 54 - 65 Between Stations (Day) 50 - 60 55 - 62 Between Stations (Night) 37 - 43 47 - 63 Source: Environmental Impact Assessment Report

16. The predicted noise levels all fall into the ranges of 55-62 dB for daytime and 47- 65 dB for nighttime. The Government stipulates the daytime and nighttime noise standards for the four types of land uses, that is, sensitive areas, residential and commercial areas, industrial areas, and areas close to a railway line. The set standards for these areas are 55 dB (day) and 45 dB (night) for sensitive areas, 60 dB (day) and 50 dB (night) for residential and commercial areas, 65 dB (daytime) and 55 dB (nighttime) for industrial areas, and 70 dB (day and night) for areas close to a railway line.

17. Noise generated during the construction stage is shorter in duration than that during operation. However, the magnitude of the impact is greater than that caused by train operation. Typical equipment used for railway construction and noise levels caused by equipment operation, including mitigation measures, are described in Appendix 3.

18. The results of the noise level forecasts indicate that there will be relatively higher than permitted noise levels due to railway operation at the locations of some noise receptors, particularly schools and hospitals. Extensive noise mitigation measures are proposed along the railway line to maintain the acoustic environment. Some noise sensitive facilities near the railway line, such as the Yulin Prefecture Medical School, and Old Age Home, and Xinzhuangku Primary School, will be demolished and rebuilt further away from the railway line. At other locations, excessive noise levels will be mitigated by sound walls, afforestation, and selection of the appropriate landform. Sound walls for noise reduction will be made with concrete foundations at the outer edge of the railway with a typical height of 2-3 m. The sound walls are expected to reduce noise by 10-12 dB. Tree planting in the buffer zone of the railway will also have a noise reduction effect.

19. Vibration impacts caused by the Project are expected to be minimal. Pile driving works, a major contributor to vibration during construction, will only be necessary to construct bridge pillars in rivers, and the bridge locations are sufficiently far from residential areas. During operation, railway services will be relatively infrequent, and the dominant soil type in the area, loamy sand, does not conduct vibration as much as does moister soil types. Therefore, no vibration impacts are envisaged. 2. Soil Erosion

20. The railway line traverses ecologically fragile areas bordering the Maowusu Desert and the loess plateau in northern Shaanxi Province. The desert area north of Yulin consists of wind-deposited sand dunes and moving sands with sparse vegetation where wind erosion is a major problem. The loess plateau south of Yulin is characterized by deep valleys, steep slopes, and broken topography with porous soil and poor vegetation where water erosion and landslips are major problems, particularly during the rainy season (July to September). Topographic and geological field surveys indicate that some areas along the railway line will be susceptible to soil erosion.

21. A combination of engineering and biological measures is proposed to control erosion and revitalize the eroded area along the railway corridor. The most important measure will be to establish ground cover on areas made bare by earthwork as soon as possible, particularly on slopes of deep cuts. The measures proposed and designed include the provision of slope protection frames, dry stone pitching, masonry retaining walls, planting of grass and trees, and the building of terraces on hill slopes and dams in gully valleys. Among these slope protection measures, grass and tree planting will be applied on as many sloping areas as possible. Other engineering preventive measures will be applied depending on the shape and angle of slopes; one very effective measure is terracing. Combined with terraces, building of dams in gully valleys will enable silt and runoff to be retained, and the bottom of the gully to be stabilized, which will reduce erosion. In areas with very steep slopes adjacent to the railway line, either a retaining wall or appropriate concrete masonry will be provided. In addition to slope protection measures, a proper drainage system will be provided to reduce soil loss. The drainage systems designed for the Project railway include berm drains on gaps between slopes of deep cuts and the bottom end of cut and embankment sections in mountainous areas, side drains in the outer edge of all cut sections, and embankments in flat areas.

22. Comprehensive control measures for soil loss by landslides will be taken through the construction of antislip piles, retaining walls, stonework for earth support, suction drains, and planting of grass and shrubs. Planning for construction work will give due consideration to the rainfall patterns to reduce erosion. In the sandy wind-swept desert areas, construction will be avoided during the windy season. Measures will be taken to refrain from leaving bare soil exposed to strong winds and rains, which will greatly limit potential problems. Slope protective measures will be taken at the proper times, before the rainy season, for effectively preventing possible soil erosion.

3. Resettlement

23. The planned railway line will necessitate acquisition of about 1,270 ha of land. The railway will also require some 800 ha of land for temporary use during construction. About 148,660 m2 of houses will need to be removed and relocated, and 3,099 households or 12,518 persons will be affected by the Project. Overall estimates of the land and housing requirements of the Project and the number of people likely to be affected by the Project are summarized in Table 2. Table 2: Summary of Land and Housing Required for Construction

Number of Persons Affected By Land to Land Housing to be Required be Removed Land Housing Acquired for (m2) Acquisition Removal Total (ha) Temporary Use (ha)

1,270 800 148,660 3,508 9,010 12,518 Source: Environmental Impact Assessment Report.

24. The people affected by land and housing acquisition for the project will be resettled in accordance with the policies and regulations of the Central Government, Shaanxi Province, and local governments of the prefecture, city, and county through which the railway line will pass. For implementation of the resettlement, a resettlement plan has been prepared by SXRC in consultation with Shaanxi Province Planning Commission. This resettlement plan provides for comprehensive arrangements for the compensation and resettlement of the affected persons.

25. Resettlement is an integral part of the Project design and is being dealt with from the earliest stages of Project preparation. The design of the Project and the development of the resettlement plan have been guided by the following general principles:

(i) avoiding or minimizing involuntary resettlement wherever feasible by exploring all viable alternative Project designs;

(ii) providing land, housing, infrastructure opportunities for livelihood, and other compensation to the adversely affected population;

(iii) improving or at least restoring the former living standards and income earning capacity of affected persons; and providing adequate support to such persons during the transition period;

(iv) encouraging community participation in the planning and implementation of resettlement;

(v) using the opportunity of land acquisition to improve the social and economic conditions of the affected peoples; and

(vi) ensuring that grievances of the affected peoples are redressed and any problems they encounter are solved.

26. Realignment to bypass affected areas as much as possible was the first measure considered to alleviate land expropriation and human resettlement problems. Where this measure is not viable, appropriate compensation measures will be undertaken. 27. The procedures of land acquisition and provision of compensation to those affected are well-established and have been implemented satisfactorily under previous railway projects in the PRC. The resettlement programs typically involve replacing houses and business premises, for which sufficient funds or substitution housing in proper locations will be provided. The new housing acquired for the Project is in general better than the old housing. Typically people relocated will be provided with houses having more floor area and utilities such as running water and toilets. Maintaining at least the same level, and improving living standards is the established norm. The resettlement is supported by a program of income restoration involving a combination of strategies that typically consist of readjusting the remaining land, intensifying and diversifying farm operations to raise incomes per unit of land, bringing unused land into production through land development, and appropriately placing excess rural labor in occupations in the industries. Decisions related to land reallocation, location of residences, occupational changes, and other related issues are made in consultation with the affected persons.

4. Air Quality

28. Existing air quality monitoring data released by the Yulin Prefectural Government for three pollutants was examined for the most recent two years. The pollutants monitored were oxides of nitrogen (NOx), sulfur dioxide (SO2), and total suspended particles (TSP). The results of the monitoring revealed that levels of NOx and SO2 were well below the established standards, while levels of TSP were relatively high, and in some cases exceeded the established standard of 0.30 milligrams per cubic meter (mg/m3). High TSP levels are a particular problem during the windy month of April. The air quality monitoring data and standards are given in Appendix 4. The main sources of air pollution from construction and operation of the Project will include earthwork associated with the railway line and related facility construction, exhaust gas emitted by diesel locomotives, gas emitted by boiler houses to be located at eight railway stations,4 and flying dust caused by coal haulage.

29. During construction, air pollution levels will be increased by machine operations for earthwork and stonework for new railway construction. The main pollutants caused by these operations include exhaust gases emitted by machines and dust caused by the earthwork and stonework. Water sprinkling during construction will alleviate dust impacts on persons living near the railway. Additional measures planned to maintain air quality include locating concrete mixing sites in isolated areas, enclosing material stockpiles, storing bulk construction materials in closed silos with appropriate dust-preventing filters, shrouding the aperture for dry mix batching, and confining working vehicles to designated routes only.

30. During operation, the major anticipated air pollutants caused by diesel-powered locomotive operation are NOx, carbon monoxide (CO), and smoke dust. As the background concentration of one of the most harmful pollutants emitted by locomotives, NOx, is at such a low level near the largest railway station of Yulin, it has been reasonably estimated that other points along the railway will have relatively low concentration levels as well. Diesel locomotives will be replaced with electric-powered units in the near future, causing no adverse impact on air quality.

31. Coal-burning boiler houses at railway stations will be required to facilitate train operations. The national emission standard for air pollutants from coal-burning boilers stipulates 3 3 that the levels of smoke and SO2 will not exceed 250 mg/m and 1,800 mg/m , respectively. The level of smoke concentration adjacent to the boiler is estimated to be 1,267 mg/m3, which does

4 Boiler houses will be located at the Hongluili, Shenmu, Yulin, Mizhi, Suide, Zhejiaping, Zhichang, and North Yanan stations. not satisfy the standard; however, devices that will reduce the smoke by 90 percent are planned to be installed at all the boilers. Therefore, the reduced level of smoke will meet the standard. The 3 concentration of SO2 very close to boilers has been found to be 1,089.7 mg/m , which satisfies the standard of 1,800 mg/m3. During operation, coal dust at the loading, transit, and unloading stages will be another source of air pollution. Such coal dust will be controlled by water sprinkling and providing cover as appropriate.

5. Encroachment on Terrestrial Ecology

32. The planned railway will pass through a combination of sparsely forested land and fruit tree plantations. To determine the existing vegetation cover along the railway corridor, a sample survey was conducted. The results of the survey revealed that the dominant tree types along the corridor are families of poplar, pine, willow, oak, and some bush species. Existing fruit trees planted are apple, grape, and some other fruit species. The total area of forested land and fruit tree plantations to be cleared will be about 78 ha. The details by city/county are given in Appendix 5. About 2 km of the railway line will go through the sabina vulgari nature reserve in Shenmu County, affecting 10 ha of the reserve's total 7,666 ha of sabina vulgari evergreen shrub, which is effective for stabilizing sand (see para. 9). The affected area is only 0.13 percent of the total reserve, and the impact is not considered to be significant.

33. The planned railway alignment was selected in such a way as to reduce the amount of trees to be cut; alternative alignments for certain sections were removed from consideration based on a careful environmental assessment. Afforested area lost during construction will be adequately made up by an afforestation program along the railway line. Afforestation is planned with trees and shrubs on a total of about 4,450 ha along the railway line and at railway stations. The afforested belts will also serve as a biological sand control measure. Before start of construction in the sabina vulgari nature reserve, the sabina vulgari shrubs will be transplanted in adjoining area to make up for the loss in area of the reserve. These shrubs are relatively easy to transplant. Also, it is planned to extend the plantation of sabina vulgari by about 133 ha every year.

6. Water Quality and Aquatic Ecology

34. Two major rivers, Yuxi and Yan, will be affected by the water discharged from the railway facilities in Yulin and Yanan, respectively. Water quality monitoring was conducted at five selected sampling locations, two for the Yuxi River and three for the Yan River. Five parameters, chemical oxygen demand, biochemical oxygen demand (BOD), suspended solids, oil grease, and pH, were tested at these sampling locations. The results of monitoring conducted three times a year and data for the two most recent years are presented in Appendix 6.

35. During construction, some water bodies crossed by the railway will need to be temporarily diverted and in some cases temporarily dammed, which may alter existing water drainage patterns. These measures may result in irregular and interrupted downstream flow and drainage, affecting local water users. Bridge construction over the major rivers may have some impact on aquatic ecology. The principal sources of water quality deterioration affecting aquatic ecology are water stream alteration and sedimentation changes from earthworks associated with the bridge piers and approaches, grease and oil discharges from machinery maintenance, and fecal contamination from the construction camps. During construction, machinery maintenance areas and construction camps will be located away from water bodies to prevent railway construction from having an adverse impact on the water quality. To reduce the likelihood of oil spills from construction equipment and fecal contamination from construction camps, sites for these areas will be designated and adequate facilities will be provided to deal with the related activities. The construction contractor will ensure strict control and disposal of domestic wastewater, garbage, and machine oils for pollution control. Under the contracts, it will be ensured that the construction sites are cleared shortly after the construction is finished and the areas no longer needed are afforested.

36. During operation, the major impacts on water resources will arise from wastewater discharged from railway facilities. These adverse impacts, when combined, would result in the deterioration of water quality in nearby water bodies through increased levels of suspended solids, BOD, and oil grease. Wastewater discharged from railway facilities is mainly domestic, while industrial wastewater containing oil discharged by locomotive and wagon facilities is generated at a few sections. Appropriate methods of wastewater treatment will be adopted at railway facilities before discharge into receiving water bodies. Incremental concentrations of BOD and oil grease caused by wastewater discharged from the facilities on the Yuxi and Yan rivers were estimated. The results indicate concentrations of BOD and oil grease would increase by 0.03 milligram per liter (mg/l) and 0.007 mg/l, respectively, on the Yuxi River, and 0.17 mg/l and 0.04 mg/l, respectively, on the Yan River. These increased levels of concentration are very small and, therefore, the adverse impacts caused by railway operation can be concluded to be minimal.

7. Historical, Cultural, and Archeological Sites

37. Although the railway line crosses the alignment of the Great Wall, the Project will have no impact on the Wall (see para. 13). In addition, four cultural/historical sites were identified by the field survey: the Zhong Yingpan Reservoir and Hongshixia scenic area near Yulin City, the Temple of Erlang Mountain in Shenmu County, and the Zhongshan Rock Cave in Zhichang County. All of these sites, designated as provincial historic sites, are far enough from the proposed railway line (2-45 km) that there will be no adverse impacts from the Project.

E. Alternatives

38. The feasibility study considered alternative alignments at several locations along the route of the Project. In each alternative considered at a location, due consideration was given to the impact on: (i) the natural environment; (ii) peoples, including extent of displacement and resettlement; and (iii) future development in the town/area. At Suide station, the Dengjialou alignment was selected (from three alternative alignments) because it would require the least removal of houses and displacement of residents, and minimal noise pollution. At station, the railway line will follow a higher cost alternative alignment to avoid obstruction to future town development. In Zichang County, a longer alignment was preferred because it would displace the fewest people and entail less noise pollution and minimal obstruction to future development of the town. The alternatives selected for the railway line provide the best option from environmental and human resettlement perspectives in the overall context of the Project feasibility.

39. A "no railway case" was considered as one of alternatives; in particular, improvement of existing highways to accommodate the heavy freight and passenger traffic that the railway would transport was considered. But since the prime function of the Project railway will be to transport bulk energy resources, particularly coal, this alternative is less environmentally friendly and less energy-efficient than using railways.

F. Cost-benefit Analyses 40. Incremental costs for the planned environmental impact mitigation measures and monitoring were estimated by FSDI and reviewed by the consultants. The total cost of environmental protection and mitigation measures is estimated to be about $25.0 million. The itemwise estimated costs of the measures are presented in the Table 3.

Table 3: Cost Estimates for Environmental Protection and Mitigation Measures Item Protection and Mitigation Cost Measures ($'000)

Air Quality Dust-free devices 87 Noise Level Noise barriers 24 Water Quality Sewage treatment systems 1,589 Terrestrial Ecology Afforestation 1,598 Soil Erosion Slope Protection 15,398 Other Items Various 6,252 Total 24,948 Source: Environmental Impact Assessment Report.

41. The incremental cost of environmental monitoring during the assumed five-year period of construction will be about $18,600 which is included in the Project cost estimates. The incremental cost of monitoring during the operation of the railway line is estimated to be about $8,400 per year, which will be charged to the operating cost of the railway line.

42. The benefits of the environmental protection and mitigation measures are difficult to quantify but include afforestation, control of erosion and revitalizing of eroded areas, and maintenance of air and water quality standards. The cost-benefit aspects of the environmental protection and mitigation measures have been evaluated in the context of the economic analysis of the Project as a whole. The results of the economic analysis show an economic internal rate of return for the Project of 17.0 percent, which is acceptable.

G. Institutional Arrangement and Environmental Monitoring Program

1. Institutional Arrangement

43. Within SXRC, professional environmental specialists will be in charge of the environmental management work of the Project. To mitigate environmental impacts from construction as much as possible during construction, environmentalists will be assigned to the construction units to implement environmental protection and mitigation measures. Supervising agencies for environmental monitoring include the National Environmental Protection Agency and Shaanxi Environmental Protection Bureau. Actual field monitoring will be carried out by the environmental protection offices of Yulin and Yanan prefectures. In addition to these agencies, the Environmental Protection Office of the Ministry of Railways will assist with the management of environment. Monitoring will cover impacts related to the environmental parameters of noise, soil erosion, resettlement, air quality, terrestrial ecology, water quality, and aquatic ecology as detailed in the next subsection. The monitoring agencies will report the results of environmental monitoring to SXRC and Shaanxi Environmental Protection Bureau. A summary of the results, together with the actions taken, will be provided by SXRC to the Bank through the quarterly progress reports on the implementation of the Project, and through the annual report on environmental management of the Project.

2. Environmental Monitoring

44. During construction, noise levels will be measured at the nearest receptors at monitoring stations. The stations will be the same as those used in the survey conducted by FSDI unless new local inhabitants are found in affected areas close to the railway. The monitoring period for each station will be three continuous days, with monitoring carried out at least once at each station. During operation, noise monitoring will be carried out at each monitoring station at least once a year. Supplemental monitoring will be conducted if and when complaints are made by local inhabitants.

45. Personnel who are responsible for maintaining soil cover on slopes will monitor the viability and effectiveness of the vegetative cover and other preventive measures taken on slopes of embankments and cuts, particularly just before and during the rainy season. The vulnerable soils and steep slope areas will be monitored.

46. The provision of appropriate compensation and resettlement of persons affected by the Project will be supervised and confirmed by SXRC and Shaanxi Province Planning Commission in accordance with the resettlement plan. The services of FSDI will be used to monitor the implementation of the resettlement plan. One year after the resettlement plan is fully implemented, FSDI will undertake an independent evaluation of the resettlement process, the results of which will be advised to the Bank.

47. Ambient air quality monitoring will be carried out during construction and operation of the railway line. During construction, dust levels measured by TSP concentration, which is the major harmful air pollutant expected, will be monitored at construction sites near residential areas. The monitoring period at each point will be at least three continuous days at appropriate intervals. During operation, SO2, NOx, and CO will also be monitored at the same sites at least once a year.

48. The monitoring of impacts on terrestrial ecology caused by the implementation of the Project will address both short-term and long-term effects. In the short term, the actual impact on terrestrial ecology will be from tree cutting and earthmoving. The changes in terrestrial ecology will be monitored by SXRC and the construction contractors as construction progresses. Long- term monitoring includes assessment of floral and faunal changes near the railway line. The monitoring will involve the examination of regeneration of native tree species, particularly the soil- fixing tree species native to the sabina vulgari nature reserve, and possible intrusion of exotic species, which tend to reproduce rapidly. The inclusion of weeds and birds within the scope of the examination is planned because these species easily thrive in open habitats and the forest edges adjacent to the railway, and are good indicators of changes in terrestrial ecology.

49. Although the impacts caused by wastewater discharges from the railway facilities are considered small, water quality near the facilities and water basin, the Yuxi and Yan rivers, will be monitored regularly. The two major rivers will be monitored at least once a year to ensure that their water quality and aquatic ecology are maintained.

H. Public Involvement 50. To investigate the anticipated impacts on local residents caused by the Project, a series of interviews were conducted based on a prepared questionnaire, with questions about household structure, occupation, employment status, household income, educational background, value of property, and attitudes toward the Project. The investigation revealed that the overall reaction to the Project is very positive, with more than 90 percent of those interviewed in favor of the railway; reasons offered included expected increased employment opportunities (e.g., in construction), more convenient long-distance travel, and overall economic development and poverty reduction in the region. Some respondents stressed that appropriate compensation should be provided to those adversely affected, which will be ensured by implementation of the resettlement plan.

I. Conclusions

51. Overall, the analysis indicates that the magnitude of adverse impacts on the environment will be mixed. For example, some lands on the proposed railway routes will need to be expropriated, causing loss of agricultural land and human relocation; sensitive receptors near the construction sites and/or railway line will be subject to noise pollution; and mountainous areas possessing vulnerable soils will be affected by soil erosion without appropriate measures. On the other hand, impacts on other environmental parameters, such as air quality, water quality, terrestrial ecology, historical/cultural/archeological sites, will be minimal. Predicted negative impacts will be mitigated by the proposed counter measures and monitoring programs, and no serious environmental problems are expected in the future. A survey of similar railway projects shows that these mitigative measures supported by required maintenance will improve the vegetation and the ecosystem along the railway line, compared to the situation before the Project.

52. The economic transportation to be provided by the Project railway will induce economic activity including the setting up of mining and industrial projects and services industry. Additional urban areas are expected to be developed. The Shaanxi Province and local governments will ensure that each of the secondary industrial and mining projects that are facilitated by the Project railway conform with national and local environmental regulations.

53. Consequently, the overall environmental impact of the Project is considered to be minimal as provision has been made to implement all of the necessary mitigation measures and monitoring programs. The railway will actually enhance economic development by providing an energy-saving and less-accident-prone transport system. APPENDIXES

Number Title Page Cited on (page, para.)

1 Environmental Examination Checklist 15 1, 1

2 Existing and Forecast Noise Levels 16 4, 15 Near Sensitive Receptors

3 Railway Construction Equipment - 17 4, 17 Generated Noises and Mitigation Measures

4 Air Quality Monitoring Data 19 7, 28

5 Forested Land to be Cleared for the Project 20 8, 32

6 Water Quality Monitoring Data at Selected Stations 21 9, 34 RAILWAY CONSTRUCTION EQUIPMENT - GENERATED NOISES AND MITIGATION MEASURES

A. General

1. The noise ranges of construction equipment and the generally acceptable noise levels are given in Table 1.

a) Table 1: Noise of Construction Equipment and Acceptable Noise Level

Equipment Noise Level Acceptable Noise At 15 meters (dB) Level (dB) Concrete Mixers 71-91 75 Pile Drivers 90-104 95 Rock Blasters 82-98 80 Backhoes 72-93 75 Tractors 73-96 75 Trucks 70-96 75 Generators 70-82 75 Source: Environmental Impact Assessment Report.

2. The equipment list, which includes items likely to be used for railway construction, and the estimated noise levels at various distance from the noise sources are described below. The mitigation measures for impacts caused by construction equipment, feasible measures in terms of specific construction activities, and equipment are also presented.

B. Concrete Mixers

3. The maximum noise level at 15 meters (m) from the source is 90 decibels (dB),5 and the levels at further distances can be estimated using the rule of –6 dB for each doubling of distance, resulting in 84 dB at 30 m, 78 dB at 60 m, 72 dB at 120 m, and 66 dB at 240 m. Thus the concrete mixing site will be at least 240 m from the receptors.

C. Pile Drivers

4. Pile driving is required to construct bridges. The noise caused by pile driving is of an impact-type and can be as high as 104 dB at peak level at 15 m. If the noise level is to be reduced below the Government’s standard of 70 dB (30 m from railway center line), the required

5 Decibel is a unit of acoustic signal power. distance from the noise source to the receptors will be 960 m. Alternative use of quieter methods of pile driving would be applied if the piling work is to be performed in populated areas.

D. Rock Blasting and Drilling Equipment

5. This type of activity will be required for the tunnel works, with noise levels of up to 98 dB at 15 m. The field survey revealed that there are no residential areas or sensitive receptors adjacent to the planned tunnel construction areas, except a teacher-training school near the planned tunnel entrance/exit. This school will be temporarily relocated.

E. Earthmoving Equipment

6. Earthmoving activity requires several types of machines, typically backhoes, tractors, and trucks, and these could generate noise levels as high as 90 dB at 15 m. A combination of these machines would increase the noise levels. Possible countermeasures to the noise are (i) setting up enclosures and barriers to protect receptors on a temporary basis, and (ii) selecting proper times for construction. The concept of “proper time selection” is to avoid “sensitive periods” and to allocate major construction times to “non-sensitive periods.” For example, schools are not sensitive to noise during the night and weekends, so the main construction times near schools can be during these periods.

F. Generators

7. The noise produced by generators is usually not more than 82 dB at 15 m, implying that the maximum estimated noise level of 70 dB can be achieved at 60 m. Additional distance or the installation of noise-reducing equipment, e.g., enclosures or barriers, will be resorted to if there are sensitive receptors nearby. Appendix 1 ENVIRONMENTAL EXAMINATION CHECKLIST

Environmental Parameters Recommended Feasible Magnitude of Impacts Affected by the Project Impacts on the Environment Mitigation Measures No Significant Effect Implementation Significant Small Moderate Major Effect

1. Air Pollution 1. Nuisances and health hazards to 1. Sprinkling water/chemicals during construction x neighbors, especially sensitive receptors, and installation of dust-free device to the hospitals, and schools. boiler houses at railway stations.

2. Noise Pollution 2. Nuisances to neighbors, especially 2. Use of low noise and vibration construction x sensitive receptors, hospitals, and schools. equipment; selection of proper times for construction; and provision of noise barrier for affected sections.

3. Terrestrial Ecology 3. Alteration of wildlife habitats and loss of 3. Rerouting; replanting precious vegetation; and x biodiversity from tree cutting. providing passageways for wildlife, if necessary.

4. Water Quality and 4. Water pollution and riverbed condition 4. Setting up machinery maintenance areas and x Aquatic Ecology changes caused by earthworks, fecal construction camps away from the river; contamination, and machine operation (oil providing measures to prevent riverbank and grease spills) related to new bridge erosion and installation of wastewater construction and railway facility operation. treatment systems to the railway operating facilities.

5. Historical/Cultural 5. Loss of cultural/historical properties by new 5. Rerouting; relocation of properties, if x Property railway construction and increased applicable. possibility of these properties being stolen.

6. Soil Erosion and 6. Soil Erosion and/or landslide in steep slope 6. Careful resurfacing or replanting of exposed x Siltation and vulnerable soil areas. areas and provision of appropriate slope proteciton measures.

7. Human Resettlement 7. Relocation of roadside residents, including 7. Rerouting; adequate compensation for x loss of agricultural lands. affected residents. Appendix 2

EXISTING AND FORECAST NOISE LEVELS NEAR SENSITIVE RECEPTORS

Station/ Distance to the Existing Noise Existing Noise Predicted Predicted Kilometer Type of Receptor Edge of Level (day) Level (night) Noise Level Noise Level Post Railway Line (dB) (dB) (day) (dB) (night) (dB) (m) Hospital 40 54.5 36.5 60.6 59.2 Yulin Station Research Institute 40 43.9 37.3 59.5 59.2 Dormitory 100 44.0 35.1 55.6 55.2 Primary School 80 44.5 34.6 55.8 65.3 Secondary School 90 41.6 34.0 55.1 54.8 Yanan Station Dormitory 40 39.5 32.9 58.6 58.3 Hospital 60 34.4 32.9 56.9 56.6 CK184+400 Wangianbu PS 120 51.3 40.1 56.2 54.5

CK212+400 Sunjiangan PS 80 51.5 40.3 57.5 56.2 CK238+100 Dingjiangou PS 50 50.2 39.0 59.0 58.2 CK239+700 Shilibu PS 140 50.3 39.1 55.4 53.8 CK261+900 Tianzhuang PS 70 60.3 43.4 61.9 56.9 CK394+600 Qingjian SS 70 60.5 43.0 62.1 56.6 CK400+600 Jieshibui PS 120 53.0 43.0 56.8 54.7 CK408+100 Yangjiayuan SS 90 59.0 37.6 60.7 55.6 CK425_250 Zichang SS 80 56.4 40.2 56.9 47.3 CK430+50 Yaping PS 120 51.5 39.5 56.3 54.5 CK433+80 Xinzhuangku PS 20 57.3 39.4 65.3 63.5 CK457+170 Penglongzhenm PS 30 58.7 40.5 59.2 50.1 CK466_450 Zhujiangou PS 40 53.6 42.4 62.0 58.4 CK 479+900 Shizi PS 40 50.2 39.0 60.4 58.3

Notes: PS = Primary school; SS = Secondary school. Source: Environmental Impact Assessment Report. Appendix 4

AIR QUALITY MONITORING DATA (mg/m3)

Monitored Air Quality

Pollutan Standard 1993 1994 t Jan Apr Jul Oct Jan Apr Jul Oct

NOX 0.10 0.031 0.011 0.010 0.022 0.030 0.29 0.18 0.025

SO2 0.06 0.021 0.019 0.008 0.013 0.033 0.018 0.010 0.033

TSP 0.30 0.079 0.861 0.297 0.248 0.746 0.815 0.186 0.321

NOX = nitrogen oxides; SO2 = sulphur dioxide; TSP = total suspended particles. Source: Yulin Prefectural Government. Appendix 5

FORESTED LAND TO BE CLEARED FOR THE PROJECT

Area of Forested Land Administrative (to be Cleared (hectare) Area Permanently Temporarily Total

Shenmu County 29.00 5.27 34.27

Yulin City 27.12 - 27.12

Hengshan County 4.60 - 4.60

Mizhi County 0.60 - 0.60

Suide County 1.45 0.49 1.94

Qingjian County 7.33 0.31 7.64

Zizhou County - - -

Zichang County 1.93 - 1.93

Yanan City - - -

(i) Total 72.03 6.07 78.10

Source: Environmental Impact Assessment Report. Appendix 6

WATER QUALITY MONITORING DATA AT SELECTED STATIONS

Sampling Site COD BOD SS Oil Grease pH (mg/l) (mg/l) (mg/l) (mg/l) Sampling Month Apr Jul Oct Apr Jul Oct Apr Jul Oct Apr Jul Oct Apr Jul Oct Yuxi River Yulin Prefecture

Hongshixa (1993) 3.0 1.8 2.2 1.5 1.8 2.0 26.0 7.0 61.5 - - - 8.54 8.54 8.66

Hongshixa (1994) 3.2 3.5 2.1 2.4 0.9 1.1 29.5 66.8 48.5 0.02 0.02 0.02 8.21 8.01 8.54

Sanchawan 3.5 4.7 6.1 1.9 2.7 2.4 43.0 278.0 196.0 - - - 8.50 8.46 8.60 (1993) Sanchawan (1994) 4.9 4.6 4.7 4.0 1.7 2.6 55.0 1,995.0 3,787.0 0.06 0.17 0.06 8.34 8.21 8.52

Luiguanzhai 4.3 4.4 4.4 1.9 3.1 2.1 70.0 833.5 412.5 - - - 8.37 8.39 8.56 (1993) Luiguanzhai 4.3 5.0 3.5 3.2 2.4 1.8 231.0 6,487.0 1,362.0 0.02 0.14 0.02 8.37 7.90 8.61 (1994) Yan River Yanan Prefecture

Liushudian (1993) 4.8 4.0 4.3 9.1 2.0 2.8 82.0 418.0 214.5 0.11 0.23 0.12 8.40 8.14 8.31

Liushudian (1994) 4.1 5.5 3.7 3.2 2.2 4.2 131.0 786.5 103.0 0.11 0.02 0.05 8.30 8.38 8.84

Siliandui (1993) 4.5 4.3 5.4 9.1 2.2 3.0 92.0 245.5 777.0 0.23 0.21 0.11 0.40 - -

Siliandui (1994) 4.2 8.0 4.1 2.6 2.2 2.6 173.0 759.5 104.5 0.24 0.02 0.15 8.45 8.27 8.85

COD - chemical oxygen demand; BOD - biochemical oxygen demand; SS - suspended solids; mg/l - milligram per liter. Source: Shaanxi Province.