Sample Initial Environmental Examination Fujian Soil

SAMPLE INITIAL ENVIRONMENTAL EXAMINATION

FUJIAN SOIL CONSERVATION AND RURAL DEVELOPMENT II PROJECT

IN THE

PEOPLE’S REPUBLIC OF CHINA

DAHE PIG BREEDING FARM SUBPROJECT

August 2003

CURRENCY EQUIVALENTS

Currency Unit __ Yuan (Y) Y1.00 = $0.1211 $1.00 = Y8.26

ABBREVIATIONS

ADB – Asian Development Bank BOD5 – biochemical oxygen demand COD – chemical oxygen demand EAR – environmental assessment report EPB – environmental protection bureau IEE – initial environmental examination km – kilometer km2 – square kilometer m2 – square meter m3 – cubic meter mg/L – milligram per liter PMO – project management office

NOTE

In this report, "$" refers to US dollars. INITIAL ENVIRONMENTAL EXAMINATION FUJIAN SOIL CONSERVATION AND RURAL DEVELOPMENT II PROJECT

DAHE PIG BREEDING FARM SUBPROJECT

I. INTRODUCTION

1. An environmental assessment report (EAR) for the Dahe Pig Breeding Farm was performed by the Nanping Municipal Environmental Research Institute and was reviewed and approved by the Environment Protection Bureau of Nanping Municipality on 23 January 2003. This sample initial environmental examination (IEE) report was prepared based on the EAR1 with some modifications, following the format and contents as indicated in the Environmental Assessment Guidelines of the Asian Development Bank, 2003.

2. The EAR was conducted in accordance with relevant laws, regulations, and standards applicable in the People’s Republic of China (PRC), including in particular:

(i) The Administrative Rules for the Environmental Protection of Construction Projects (State Council Decree No. 253, November 18, 1998), (ii) National Standards on Waste Discharges from Livestock Industries (GB18596- 2002), (iii) National Hygiene Standards on Township & Village Planning (GB1855-2000), (iv) Ambient Quality Standard for Surface Water (GB3838-2002), and (v) Standard of Noise at Boundary of Industrial Enterprises (GB12348-90).

II. DESCRIPTION OF THE PROJECT

3. The proposed Project is an expansion livestock development project (Phase II). The existing first phase project consists of 8 pigsties with 500 first-generation and 3000 second- generation pigs. The total investment is Y4.50 million ($544,794), which includes Y0.30 million in environmental protection investment. There are 24 staff members working in the first phase project.2

4. Located in Daheng Township, Yanping District of Nanping Municipality, the Phase II Project is adjacent to Phase I Project. The Project will be 15.4 kilometers (km) away from the downtown area of Nanping City, 1.5 km from the Daheng Township Center in the north, and 500 meters (m) from Jian River in the east. It is about 1 km away from the nearest village. Appendix 1 provides details of the Project location and its surrounding land use.

5. The total land of the Phase II Project will cover an area of 120 mu (8 hectares [ha]), including the development of (i) 24 modern standard pigsties with a total building area of 8,200 square meters (m2), (ii) a pig-feed processing workshop with an area of 2,400 m2, and (iii) an office building with an area of 1200 m2. After operation, the annual pig population in stock will be

1 The Nanping Municipal Environment Research Institute is an EIA-certified agency. Its EIA certification was issued by the State Environmental Protection Administration on 25 December 1999. 2 Dahe Breeding Farm is part of the Dahe Livestock Development Company, Ltd. The company is composed of one breeding farm and five piggeries. Dahe Breeding Farm and three of the five piggeries are located in Nanping Municipality, with a total number of 183 staff members and 3 environmental managers. The three environmental managers (two full-time and one part-time) are in charge of daily environmental monitoring and management work in Dahe Breeding Farm and the three piggeries. 2

1,000 heads of first-generation pigs; 3,000 heads of second-generation pigs; and 3,000 heads of piglets. The production capacity of feed processing is 80,000 ton/year. In addition, it will develop 1,000 mu (about 67 ha) ecological orchard and 2,100 cubic meters (m3) wastewater treatment and biogas comprehensive utilization facilities. The layout map of the Project is provided in Appendix 2. The total investment is estimated as Y15 million, of which Y5 million will be financed by the Asian Development Bank (ADB). It is estimated that after the completion of the Phase II Project, it will help 3,100 farming households to sell 100,000 pigs annually, therefore increasing their income per capita by Y6,000 (about $726).

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Environment

6. The landform within the boundary of Daheng Township is low hill land. Northeast of the site is orchards mixed with some oil-tea camellia, while bamboo, and oil-tea camellia grow in southwest along the Jianxi River. There is no farmland near the site location. The plantation coverage is more than 70% excluding the riverbank. The existing lush vegetation includes shrub, grass, orchards, and pastureland.

7. Belonging to the sub-tropical monsoon climate, the area enjoys the characteristics of an early spring, a long summer, a late autumn and a short winter. The annual average wind speed, temperature, rainfall, and evaporation are 1.1 m/s, 19.3°C, 1,669.9 mm, and 1,413 mm, respectively. Northwest wind prevails in winter and southeast wind prevails in summer. There are no natural reserves, historical relics, nor protected plants or animals in the project area. Jianxi River is 500 m away from the project in the east, belonging to Kengwei Village of Pucheng County. The watershed area is 16,376 square kilometers (km2) and the total length is 297 km. The stream flows from north to south, via Jian’ou City Daheng Township, to the Minjiang River. The stream within the boundary of Yanping District is 33 km long with the watershed of 256 km2. The annual runoff reaches 16,792 m3, with the stream gradient ratio of 8%.

8. There are no serious water pollution sources within 1 km around the project area. The water quality of the Jianxi River complies with Category III of the surface water standard (GB3838 – 2002) with COD concentration of 20 milligrams per liter (mg/L) and BOD5 concentration of 4 mg/L. The current air quality and noise levels are, respectively, within Category II of the national air quality standard (GB3095 – 1996), and Category II of the noise standard (GB3096 – 1993, LAeq≤55dB during day time, and LAeq≤40 dB at night).

B. Social and Economic Development Status

9. The population in Daheng Township is 17,264, while the agricultural population is 15,240. Agriculture development includes rice, orchards, tea gardens, and forest farms. The township enterprises are engaged in the brick industry, wood processing, livestock, and small- scale chemical industries. There are 15 village committees governing 48 natural villages, 64 village health centers and one clinic. The population density is 84.1 persons per km2. The average per capita income of Daheng Township was Y2,312 (about $280) in 2001. 3,133 persons earned an income below the poverty line (Y1,000/year or about $121).

10. Farming is the main economic endeavor of the populace in the township. Thus, the population consists predominantly of farmers, with only a few percentages earning some off- farm income from trading, transportation, agro-processing, etc. Work opportunities aside from 3 agriculture are limited. Most land is collectively owned. Cropland accounts for 18.7% of the total land, while the remaining land is forestland, waste land and flood land. Grain farming is the main activities of the villagers within the township. Cash crops including fruits, vegetables, and tea are also grown. Farm mechanization is not evident. Livestock including pig, cattle, and chicken also play an important role in the township.

11. Roads and public transportation from villages to the district are generally good. Access roads between and within villages are in need of maintenance. Electricity and drinking water supply is adequate, while drainage systems are inadequate.

12. Public health is a typical of rural poor communities, with top morbidity causes rooted in poor or unsanitary conditions such as upper respiratory tract infections and gastro-intestinal diseases. Life expectancy is 72.6 years, while the infant mortality is 0.7%.

IV. SCREEN OF POTENTIAL IMPACTS AND MITIGATION MEASURES

13. A summary of potential environmental impacts and the mitigation measures is given in Appendix 3. Salient points are described below according to the Project cycle.

A. Potential Environmental Impacts Related to the Location and Design and Mitigation Measures

14. The Project Site is selected carefully based on the consideration of environmental factors such as water resource, air, and distance to the residential areas to minimize the impacts. The distance to the nearest residential area is 1 km, which complies with the requirement of the National Hygiene Standard on Villages & Township Planning (GB1855 – 2000) on preventive distance.2 Located in the non-sensitive ecological area and far from the residential area, the proposed Project has no potential environmental impact related to the location. There will be no significant negative impacts by the project design as long as the Project adheres to the national and provincial environment protection regulations and standards and fully implement the mitigation measures and environmental management plan.

B. Potential Environmental Impacts Related to Project Construction and Mitigation Measures

1. Soil Erosion

15. During Project construction, 150,000 m3 earth will be excavated, which will likely cause soil erosion in 11 mu of land (slight erosion). A special place for soil excavation will be designated in order to avoid the sedimentation discharge into the river. The excavated soil and waste earth will be used as the foundation of the pig farm. During the construction it is required by EIA regulations to lay bricks on the slope and plant trees and grass as temporary ground coverage for the disturbed area. The water drainage system should be built in order to reduce water and soil erosion along the slope. After the Project completion, 26,700 m2 of grassland and 300 trees will be replanted on the 5,000 m2 exposed side-slope. The drain system will be improved. A 1,600 m long U type draining ditch with the auxiliary facilities such as grill and silt basin will be built. It will ensure more than 85% of rain will flow into the ditch so as to prevent

3 According to the Standard, the preventive distance is 200 – 800 meters (m) to the local households for a farm with 500 to 1,000 pig heads and 800 – 1,000 m for a farm with 10,000 – 25,000 pig heads. 4 erosion on the side slope. After the construction, the soil erosion amount shall be lower than 1 t/a. 2. Wastewater and Solid Wastes

16. There will be 11 staff working at the project site during the construction on duty, with estimated daily water consumption of 2.75 tons. The domestic wastewater will be treated by a small biological treatment device, which needs little power and can be laid underground, then discharged to the biogas generation pit that was built under Phase I Project. Daily solid waste production estimated is 11 kilograms (kg). Solid waste will be collected and then transported to the waste safety treatment plant, which is 1km from the site in the township.

3. Noise

17. The noise problem may arise from the operation of machinery at the construction stage.3 The mitigation measure involves the selection of low noise machinery from the market, restriction of construction time between 6:00 a.m. – 10:00 p.m., and timely oiling and maintenance of the machine. The nearest village is located 1 km away from the pig farm (straight line), with a hill dividing the village from the pig farm. The hill is expected to absorb the majority of construction noise. Noise protection equipment will be distributed to construction workers on site. Actual noise level will meet Class II of Standard on Noise at Boundary of Industrial Enterprises (GB 12348-90).

C. Potential Environmental Impacts Related to Operation and Mitigation Measures

18. Main environment problems at this stage may arise from inadequate operation and maintenance of the pigsty. An integrated wastewater treatment and bio-gas utilization system will be built. Sludge generated from wastewater treatment and pig manure will be composted., and then used as organic fertilizers to the orchards owned by the Breeding Farm or be sold to farmers living around the Breeding Farm. Biogas generated from the composting process will be used for cooking and heating.

1. Pig Manure

19. At the operation stage, the solid waste of pigs will have potentially negative environmental impacts. The pig waste will be in average 2.2 kg/day per pig, totally 4,334 tons per year. The dried dung technique will be used in the pig farm to mitigate the adverse impacts. The waste collected will be used as compost in the orchards. Before the compost, it shall be sterilized in order to mitigate the odor impact to the sanitation and air quality in and around the area.

20. The daily waste of the 15 staff of the pig farm will be 1 kg/person-day, or 5.5 tons each year. After collection, the solid waste will be sent to the garbage treatment plant.

2. Sewage from Pig Sties

21. The sewage after the washing of the sty may cause environment pollution. 15 L/pig sewage, totally 97.7 tons of sewage (including urine) will be washed out each day. The COD in the sewage will be about 10,000 mg/L, BOD5 5,500 mg/L. After treatment by the digester in the

4 The noise from one unit is about 60 dB from a distance of 500 m outside. If three units are operating at the same time, the noise will be 72 dB. 5 biogas generation tank, the liquid will be pumped for irrigation of the orchards and the feeding of the fish. The residue after the biogas generation will be used as compost for the orchard. The biogas will then supply fuel for the office and dormitory. It will be an ecological circle. There is zero discharge.

22. The treatment process includes the following steps:

(i) Solid and water separation system. To separate the large sized suspending solid, floating debris and sand in order to reduce the solid load to the following-up treatment process, this system is composed by screens and grit setting tanks. (ii) Anaerobic biogas production system. This median temperature digestive treatment is considered suitable to the weather in Fujian Province, this treatment is the core part of the whole system, the wastewater retention time (10 days in total) in this process is the longest in whole system, at least 80% of organic pollutants may be degraded and digested, the concomitant large amount of biogas(methane) can be a useful energy source, this system is composed by mesophilic methane fermentation tanks (2x450m3) and anaerobic filters (2x100m3). (iii) Biological aerobic system. An SBR (Sequencing Batch Reactor) system (2x100m3) with 5 processes of water filling, aeration and reaction, sedimentation, discharge and idle, one batch will take a time of one day, the SBR is mature both in technical and maintaining aspects. (iv) Sludge drying system. Two sludge tanks can store sludge from each facility, sludge is transferred to these tank for natural air dry; the dried sludge will be used as fertilizer. (iv) Biogas utilization system. The system formed by the biogas tanks fire preventive tanks, pipelines for transmission and biogas stoves. About 200 m3 of biogas will be produced daily from the methane fermentation process,

23. The wastewater treatment process flow chart is in Appendix 4. After the treatment, CODcr concentration will be reduced from 11,000 – 25000 mg/L to 400 mg/L, and BOD5 concentration from 4,000 – 8,000 mg/l to 150 mg/l. This will meet the National Standards on Waste Discharges from Livestock Industries (GB18596 – 2002).

3. Domestic Wastewater

24. There will be 15 staff living on the pig farm, with a daily water use of 3.75 tons. Domestic wastewater will be discharged to the sewage treatment system described above.

4. Air Pollution and Odor

25. The waste gas will be NH3, H2S emitted from the pig waste and urine that will lower the air quality in the surrounding area. However, the project site is about 1 km away from the nearest residential area, and the project is located in a comparatively closed space, therefore will not cause any significant negative impact to the environment. During the feed processing, the crash and mixing of the feed will produce little dust. To mitigate the impact, the processing workshop will be airtight, with a gas skirt for collection of dust. In addition, it will be far away from the residential area. Moreover, the enterprise will strengthen the protection of the staff working in the workshop. Desulfurizing equipment will be installed for methane burning. Biogas will be used in place of coal in the farm for cooking and boiling. During the winter it will be used for heating for the newborn and young pigs. Air pollution from coal burning will be reduced. 6

Odors in this modem style of pig farm has no impact to the residential area. The ground of the pigsty is covered by cement. Workers clean the dry excrement from the pigsty twice each day and each pigsty is washed with water and swept clean twice each day as well. 10.7 ton of excrement will be taken out of the pigsty each day and mixed with scraps wood, ash, residue form the biogas generator for aerobic fermentation. After one month, eggs and harmful microorganisms will be killed by the high temperature of fermentation. One third of this excrement will be transferred to the orchard as organic fertilizer and the remaining two third will be sold to the local farmers.

5. Noise

26. The noise from the pig is an intermittent noise, however there will be no impact on the village due to the distance between the farm and the nearest residential area. The noise from the pug mill and crusher of the feed processing workshop will be 75 dB, which will affect the health of workers. The workshop is a closed type workshop and far away from the residential area, and will not impact the environment. The mitigation measure is to position operation machinery appropriately, periodically maintain the equipment and strengthen the personal protection for workers.

V. INSTITUTIONAL REQUIREMENT AND ENVIRONMENTAL MONITORING PROGRAM

27. The Dahe Livestock Development Company, Ltd. has the responsibility of studying and implementing environmental protection requirements, carrying out the recommended mitigation measures and self-monitoring plan, and submits environmental monitoring reports on regular basis (once each half year) to the concerned environmental protection bureaus (EPBs) and project management offices (PMOs) at various levels. If any significant issues arise with serious environmental impacts, the project sponsor will report through the PMO who is then responsible to notify and report to the ADB. The project sponsor will hold on site environmental regulation training for the staff and communicate with the local EPBs on all related regulations and standards in order to comply with all the legal requirements. During construction and operation, the two full-time and one part-time environmental managers of the company will be responsible for the daily monitoring of the wastewater, air, and noise and will report to the general manager. They will be also responsible for appropriate operation and maintenance of the wastewater treatment and biogas comprehensive utilization facilities.

28. In addition to the investment in implementing the recommended environmental mitigation measures (see Appendix 3 for details), the Dahe Livestock Development Company, Ltd. will allocate Y70,000 (about $8,475) each year for environmental monitoring and management at Dahe Pig Breeding Farm.

29. The environment protection bureaus of Nanping Municipality and Yanping District will be responsible for the monitoring and routine inspection of the project environmental protection measures.

30. PMO at county level has the responsibility for field visits and reviewing the environmental monitoring reports submitted by the Company. Any significant adverse impacts on the environment should be immediately reported to the provincial PMO, and then to the ADB.

VI. PUBLIC INVOLVEMENT

31. Relevant government agencies, environmental experts, and residents were involved in project design and environmental assessment. Agencies that were consulted include the agriculture offices, environmental protection bureaus, and soil conservation offices of Nanping Municipality and Yanping District.

32. In March 2002, the Dahe Agriculture and Livestock Limited Corporation conducted a survey and assessed view of residents in Baishawei Village and Daheng Tonwship located near the Project site. A multi-questionnaire was distributed to 100 people and 93 responded. Nine questions were asked regarding the awareness of the Project, view of environmental impacts related to design and location, construction and operation, the residents’ most concerned environmental issues, and residents’ suggestions and recommendations. The main results of the survey show (i) 88% of residents are aware of the Project; (ii) 22% of residents consider the Project with minor or some environmental impacts, while 76% consider no environmental impacts; (iii) 71% of residents consider the location appropriate, while 5% residents consider it inappropriate; (iv) the main environmental issues concerned by residents are dust and solid wastes during the construction period, and sewage from pig sty after operation. The residents surveyed also expressed their desire for the company to strictly implement the environmental mitigation measures.

VII. FINDINGS AND RECOMMENDATIONS

33. The result of the IEE clearly indicates that the potential negative impacts of this Project on the environment are localized, short-term, not significant, and can be mitigated. It is therefore concluded that there be no need for a full-scale environmental impact assessment. Appropriate mitigation measures and monitoring plan have been developed and an appropriate budget for environmental management has been proposed.

VIII. CONCLUSIONS

34. The proposed subprojects under the component of Integrated Livestock Farming will have limited adverse environmental impacts as long as appropriate mitigation measures, environmental management and monitoring plan is developed and implemented. Environmental assessment of each subproject during the loan implementation will follow the environmental assessment framework (EAF).

8 Appendix 1

DAHE PIG FARM PROJECT LOCATION

Appendix 2 9

SITE LAYOUT MAP OF DAHE BREEDING FARM

Office building Warehouse Feeds Processing

Pig sty Pig sty Pig sty

Grit chamber Grit chamber

Anaerobic Anaerobic Digestion Digestion chamber chamber

SBR SBR Water flow direction

Stabilization pond 10 Appendix 3 Appendix

POTENTIAL ENVIRONMENTAL IMPACTS AND POSSIBLE MITIGATION MEASURES

Environmental Impacts Magnitude Duration Budget Project Phase Positive Negative D1 D2 S M L Mitigation Measures (Y'000)

1. Siting and Location No impact No impact 2. Construction Soil erosion √√Soil will be collected at a designated area until it is reused to build 70 foundation of the farm. Water drainage system will be constructed and revegetating exposed areas will occur to help reduce soil erosion. Wastewater and √√ Domestic wastewater will be treated by a small biological 60 Solid wastes treatment and solid waste will be collected and transferred to the waste safety treatment plant 1 kilometer (km) away. Noise from √√ Appropriate arrangement and usage of machinery, installing a 150 machinery sound insulation cover on machine, and personal protection for workers. Dust √√Water spraying to reduce the impact of dust 30 3. Operation An ecological circle with zero discharge as solid waste will be used as fertlizer and the sewage will be collected and used for the fisheries Solid waste of pigs √√The waste will be collected and dried and sterilized and then used 50 and irrigation. Biogas as compost for the orchards. will be used to heat the office and dormitories. Sewage from the pig √√Sewage will be washed from the sties and then treated by an 890 sties anaerobic digester in the biogas generation tank, and after filtration, it will be further treated by a bio-aerobic SBR (sequencing batch reactor) tank. After treatment, the residue will be used as compost for the orchard and the liquid for irrigation of orchards and feeding of fish. Biogas will supply fuel for office and dormitory Domestic wastewater √√Discharge to the anaerobic digester and SBR treated by the same 30 system with sewage from the pig sties Air pollution and odor √√Processing workshop will be airtight with a gas skirt to collect 155 dust. Desulfurization equipment will be used for methane burning. Biogas will be used instead of coal burning and pig sties will be thoroughly cleaned twice a day. Machine noise √√Position machinery appropriately, maintain regularly, and provide 40 personal protection for workers.

Total 1,475

D1 = no or a little impact; D2 = significant impact; S = short term, <1 year; M = medium term, 1-10 years; L = long term, >10 years. Appendix 4 11

UTILIZATION SYSTEM UTILIZATION THE PROCESS OF WASTE WATER TREATMENT AND BIOGAS COMPREHENSIVE TREATMENT WATER OF WASTE THE PROCESS SBR = sequencing batch reactor (aerobic biological system).