Environmental Monitoring Report

Project Number: 44035 January 2015

PRC: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

Prepared by Ningxia Project Management Office

This report has been submitted to ADB by the Ningxia Provincial Government Project Management Office and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB. Project Number：：：2973-PRC

ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

Environmental Monitoring Report (For Period of January to June 2014)

Submitted to ADB.

Ningxia Irrigated Agriculture and Water Conservation Demonstration Project PMO November, 2014 Contents 1 Introduction 2 Institutional Setup and Responsibilities for EMP Implementation and Supervision 3 Environmental Mitigations and Compensation Measures Implemented in the reporting period 4 Summary of Environmental Monitoring 5 Institutional strengthening and training 6 Conclusion

1 Introduction

The Loan for Ningxia Irrigated Agriculture and Water Conservation Demonstration Project in the amount of $70 million from ADB’s Ordinary Capital Resources was approved by ADB on 14 December 2012. The Loan and Project Agreements were signed on 7 May 2013 and the Loan became effective on 27 June 2013. The project will be implemented over a five-year period with the physical completion of the project by 30 June 2018. The loan is scheduled to be closed on 31 December 2018.

The project will improve the value of horticultural crops by planting high-value and high-quality varieties, constructing water conservation infrastructure, promoting sustainable farming practices, and developing institutional capacity. The project will be implemented in Hongsipu District, Tongxin and Yanchi counties, and six farms of the Ningxia Agricultural Reclamation Group Co., Ltd. (NARC) in Ningxia. The impact will be improved sustainability of agricultural production in Ningxia. The outcome will be increased quality and value of horticultural crops in Ningxia. The project will have four outputs: (i) improved irrigation systems, (ii) improved vineyards and Chinese date orchards, (iii) increased grape processing capacity, and (iv) strengthened institutional and farmer capacity.

The Ningxia Hui Autonomous Region government is the executing agency which on behalf by Ningxia Finance Department. Set up Project Management Office (PPMO) and responsible for the daily coordination of project preparation and implementation. Ningxia Agricultural Reclamation Group Co., Ltd, is implementation agency which under the jurisdiction of government, Hongsipu District Government, Tongxin County Government and Yanchi County Government are the implementation agencies under the jurisdiction of Ningxia Agricultural Reclamation Group. Implementation agencies had set up project offices (PIOs) to carry out daily implementation, procurement, monitoring and evaluation of subprojects.

During this report period, we had already implemented environmental monitoring to all subprojects. The subproject of improving irrigation system which under construction: Ningxia Agricultural Reclamation Group Co., Ltd, constructed diversion channels , desilting basin and 6 cubic reservoir in Qukou Farm, 170 cubic reservoir which using domestic matching funds in Hongsipu District. Reconstruct and construct new vineyard: 2348 acres of vineyard in Lianhu Farm, 3300 acres in Yuquanying and 1121 acres in Qukou and 5000 acres in Hongsipu. Increase grape processing facilities: built 5000 tons of grape processing ability and the quality monitoring system in Nuanquan Farm. Strengthen institution and ability development content: trained the number of 1880 farmers through farmer field school and established Water User Association in Qukou Farm and Hongsipu District. So far, we had completed 30% of the project execution and 20% of the overall project loan. 2 Institutional Setup and Responsibilities for EMP Implementation and Supervision

In order to protect the regional environment of each project area and ensure the effective control and remission for all kinds of bad effect during project construction, we implemented strict and scientific tracking, and normative environmental management and environmental monitoring in the whole process of the project.

2.1 Environmental Management Executing Agency

The setup of this project environmental management organization as follows: establish the Ningxia Hui Autonomous Region ADB Loan Ningxia Irrigated Agriculture and Water Conservation Demonstration Project leading group, underling sectors are management office (Ningxia Project Management Office), the office location is Ningxia Agricultural Reclamation Project Management Department (Original Foreign Capital Management Office), the leading group and office of cities and counties in the project area (cities and counties project management office). Under the leadership of Ningxia Project Leading Group and Ningxia Project Management Office, the each leading groups and management offices of cities and counties project organize the implementation and administration in the project areas (See Table 2-1 Management Organization and Personnel Arrangement for details). Environmental management agencies of construction phase and operation period see chart 1 and 2.

Ningxia Leading Group

Ningxia Project Management Office

Environmental Protection Staff（Ningxiacity Project Management Office

Design Department City (county) Project Local governmental Management Office organizations contain all levels environmental protection agencies, and agricultural competent departments

1 Construction Phase Environmental Management Organization Setup Diagram

Ningxia Leading Group

Ningxia Project

City (county) Project Management Office

2 Operation Period Environmental Management Organization Setup Diagram

Table 2-1 Management Organization and Personnel Arrangement Contact Department Name Position Major Duties Information Sun Municipality Director Project Leader 0951-3971865 Liping Project In charge of writing and Management Liu Project 0951-5069409 submitting Environment Office Zongzhi Supervisor 0951-3971992 Monitoring Report Gou Director Project Leader of Jinping Agricultural Reclamation Agricultural Group ADB Project Reclamation Yao Jun Project In charge of Agricultural 0951-3971992 Project Supervisor Reclamation Project Management environment monitoring, Office systemizing data and submitting Yuquanying Tian 0951-8450225 Environmental monitoring of Feng agricultural reclamation Huangyangtan Liu 0951-8480180 project sites, contact the Chunyu local environmental Qukou Wang 0955-5691245 Staff protection department to Shaojun assist environmental Lianhu An 0953-3049030 monitoring, implement Hongwei monitoring data sorting and Nuanquan Wang submit Xiaohong Hongsipu Wang Director Project Leader Project Area Qingshan Yang Staff Project Area Environment 0953-5099312 Xiaodong Monitoring

2.2 Executing Unit Responsibility

Carry out national environmental protection laws and regulations, prevention and control policies; Manage environment in the project construction phase and operation period, supervise implementation of environmental mitigation measures submitted by project contractor according to the report; Coordinate with different departments to do a good job of environmental report; Pass on the opinions of the local environment department and requirements timely; Entrust relevant agencies and departments to supervise environment of the project ; Entrust a qualified environmental monitoring station to implement the environmental monitoring work during project construction phase and operation period; Take charge of public environmental complaint and accept the supervision of the local environmental protection department.

2.3 Supervisory Organization

The Ningxia Environmental Protection Department is the competent department of environmental protection and responsible for environmental management and supervision, cities and counties environmental protection agencies take charge of environmental management and supervision in their respective jurisdictions. (See Table 2-2 Local Environmental Management Organization and Personnel in Charge for details)

Table 2-2 Local Environmental Management Organization and Personnel in Charge Project Provincial City County Comment Department Organization Organization Organization Agricultural Ningxia Yinchuan Yongning Yuquanying and Reclamation Environmental Environmental County Huangyangtan Yuquanying Protection Protection Environmental belong to Department Administration Protection Yongning Administration County Agricultural Ningxia Yinchuan General Reclamation Environmental Environmental Director ： Wu Huangyangtan Protection Protection Yongqi Department Administration Deputy General Director：Zhang Yongzhong Agricultural Ningxia Zhongwei Zhongning Reclamation Environmental Environmental County Qukou Protection Protection Environmental Department Administration Protection Administration General Director ： Wang Zirong Deputy General Director ： Tian Jianhua Agricultural Ningxia Qingtongxia Qingtongxia Reclamation Environmental Environmental Environmental Lianhu Protection Protection Protection Department Administration Administration General Director ： Wu Wensheng Deputy General Director：Zhang Yuming Agricultural Ningxia Shizuishan Shizuishan Reclamation Environmental Environmental Environmental Nuanquan Protection Protection Protection Department Administration Administration General Director ： Liang Fuxiang Deputy General Director ： Liu Junming Hongsipu Ningxia Wuzhong Hongsipu Project Area Environmental Environmental Environmental Protection Protection Protection Department Administration Administration

3 Environmental Mitigations and Compensation Measures Implemented in the reporting period

The implement of this project mainly contains planting of grapes and Chinese date and increasing the grape processing facilities, potential environmental impacts and mitigation measures monitoring content is divided into following three kinds of condition: I farmland, forest land, grassland and orchard monitoring index system; II construction site monitoring index system; III test run or the whole operation of the winery monitoring index system. This stage of the project is construction phase, environmental monitoring main content is: I farmland, forest land, grassland and orchard monitoring index system; II construction site monitoring index system. Potential environmental impacts and mitigation measures monitoring of grape planting are shown in table 1-1, Potential environmental impacts and mitigation measures monitoring of grape processing facilities are shown in table 1 - 2.

Table1-1 Impact Factor Potential Impacts Mitigation Measures Implementation status defined in the EMP and/or Issues

Raise dust Raise dust has the 1Avoid to operate Avoid to operate in effect on air by land in the weather of the weather of leveling, digging strong wind, shorten strong wind in planting trench and the construction Qukou Farm ， fertilization and time as much as Lianhu Farm 、 other planting possible, improve Yuquanying Farm、 process the work efficiency; Hongsipu Project 2 、 Increase implement area. farmland shelterbelt Start grape planting in grape planting and soil preparation area, it is beneficial from the middle of to restore and April to the middle of protect the local June，the duration is ecological short. It has small environment; 3 、 effect on Hold a meeting to surrounding ambient construction air， planting grape workers about the also can improve meaning and environment and importance of climate around. ecological protection Noise from machinery field Noise mainly comes operation from the excavator and tractor which are doing field work, it belongs to discontinuous kind, little impact on the surrounding residents. Solid waste Garbage and waste Centralize stacking We supervise packing material in temporarily, clean construction irrigation system up at any time; agencies strictly construction and recycle the materials according to the installation which are recycling mitigation measures and reusing, in planting project transport the area. garbage to the location designated by the local competent department for processing.

Table 1-2 Influence Factor Potential effect / Mitigation Measures Implementation problems Situation Raise dust Road dust and 1 plan strictly and automobile exhaust reduce Soil from excavation of disturbance area as foundation and possible; 2 watering materials and reduce dust transportation in around the construction site construction sites; 3 store cement and other building materials centralized, cover open-air things;4 use closed vehicle for transportation, loading and unloading building materials, particularly sand and gravel; 5 avoid Nuanquan Juice the windy weather Processing Plant Noise From construction 1 arrange implements strictly engineering construction according to the reasonably, avoid to mitigation arrange a lot of measures. power machinery and equipment in the same place in order to reduce the local sound level; 2 reduce noise of construction equipment, ues low noise equipment as far as possible, maintain and overhaul machinery equipment regularly Building Waste Construction waste 1 Clean up the and packaging construction waste materials produced which has recycle in the process of the worth, collect construction and separately and then equipment sell. 3 transport installation unworthy garbage to the designated place by each project competent department for safe treatment.

In conclusion, the main environment influencing factors during the construction phase are raise dust, noise, solid wastes (rubbish, etc.), etc. Through the overall project analysis, we get the conclusion of project construction duration is relatively short, the effect will finish when the end of construction phase and will not affect the surrounding environment.

4 Summary of Environmental Monitoring 4.1 Monitoring plan The implementation of environmental monitoring program in construction project is mainly in two stages, the first stage is monitoring in construction phase; the second stage is the monitoring after putting into operation. According to the project environment characteristics, construction phase and operation period environmental monitoring program are shown in table 3 and table 4.

Table 3 Construction Phase Environment Monitoring Plan Phase Monitoring Main technical Requirements Implement Content agency ambient air monitoring project：TSP monitoring frquency： construction fastigium，every morning and afternoon for once monitoring site： inside construction site boundary Each city(county) Vegetation monitoring project ： forest and Construction project area deterioration grass coverage ratewater and Phase management and water and soil loss intensity office soil loss monitoring frquency：after heavy rainfall in summer of construction period for once，when wind speed is greater than 8 grade construction period for once monitoring site： project area TSP:总悬浮微粒

Table 4 Operation Phase Environment Monitoring Plan Phase Monitoring Main technical Requirements Implement Content agency Water monitoring project： total dissolved solidsnitrite Environmen sulfate and other water quality and underground t water level monitoring frquency：monthly monitoring site ： area underground water entrance and outlet of settling pond of juice processing plant irrigated area

Each ambient air monitoring project：TSP city(county) monitoring frquency： semiannually Operation project monitoring site：project area Phase area Soil monitoring project ： PH organic total manageme nitrogen nt office monitoring frquency：twice a year monitoring site： water saving irrigation area Virescence monitoring project：survival rate of tree monitoring frquency：semiannually monitoring site：project area Diseases Set up diseases and insect pests monitoring and insect and prediction site,，pay close attention to pests the diseases of grape and protection forest

Internal supervision report: In the construction phase, signatory supervision company with the cities (counties) implement internal supervision, and reflect the results in the regular construction report. The report content should be summed up as follows: the environmental problems in construction; mitigation measures which will be taken possibly; the influence result to the environment and the surrounding area. According to the requirements of the environmental management plan, construction side should accept training for taking measures to alter the adverse effects timely, or have the ability of improving and taking mitigation measures, implementing agencies should cooperate with construction side to take measures appropriately and timely. In construction phase, implementing agencies should draw up detailed internal environmental monitoring scheme and measures, and submit to cities and counties project management office in time.

External monitoring report: In project construction phase and operation period, monitoring content mainly include: construction and operation activities; environmental conditions; monitoring sampling locations; analyze the results; monitoring explanation and meaning of results; put forward improvement suggestions. Environmental monitoring report are implemented by each county (city), they statistically process the monitoring data, summarize through the tabular form, write the monitoring report, and submit to Ningxia project management office; Ningxia Project Management Office write general environmental monitoring report in accordance with the report submitted by cities and counties PMO, then submit to Ningxia Project Leading Group and ADB.

4.2 Monitoring Results

From the view of environmental protection and ecological protection, ecological type in the project area is unitary and the ecological structure is relatively simple, implementation of overall project is well. Throughout the project implementation area, the environment condition is quite good which reflectin: there is no serious environmental pollution incidents, no large amounts of solid wastes which is from the construction site or due to the improper handling operation activities, and no obvious environmental deterioration in appearance, also no complaints about environmental problems from the public in project implementation area (Details as attached list: table 5: monitoring index system table of farmland, forest land, grassland and orchard, table 6: monitoring index system of the construction site.

5 Institutional strengthening and training

Established the project implementation office which is relying on Ningxia Hui Autonomous Finance Department Project Management Office to ensure that the project participants understand their responsibility fully of executing project environment related activities, also get a better understanding of the reason of carrying out environmental monitoring plan. Training is mainly divided to three levels: Firstly is the project officer; Secondly is the technical personnel; Thirdly is farmers. Training of Project officer mainly aimed at the project management office of provincial, municipal (county) who take charge of executing the environment monitoring program, the main training content including local laws and regulations, resources protection and ecological environment protection, etc. Training of technical personnel focuses on the professional side of water conservancy, forestry, agriculture, juice processing factory, main training about water conservation, forestry and agriculture technology, organic agriculture and product marketing and other aspects. Training of farmers is aimed at all participated farmers in the project area, mainly about water saving technology, grape, Chinese date and other crop cultivation techniques.

Table 5 .Personnel Training Situation (Environmental Protection) Departme Time Location Organizer Participant Numbe Main nt r Content Municipality 2012.11.10 Ningxia Municipality Leader of 33 On the base Project Agricultural Project Municipality people of all Manageme Reclamation Manageme Project Country nt Office Third Floor nt Office Management environment Meeting Office and al protection Room Project laws and Management regulations, staffs, policies of supervisor resources leaders and protection related project and staff of each ecological project area environment protection, environment al manage during construction period and operation period, coordinate with different departments to do a good job of environment al report, etc Agricultural 2013.2.8 Ningxia Ningxia Ningxia 27 Training for Reclamatio Agricultural Agricultural Agricultural people the n Project Reclamation Reclamatio Reclamation environment Area Third Floor n Project all staffs impact on Meeting Manageme leader of project Room nt Office each saving sub-project water, department planting, project processing management and personnel production manageme nt.

Agricultural 2013.3.20 Ningxia Ningxia leader of 50 Training for Reclamatio Agricultural Agricultural each people environment n Project Reclamation Reclamatio sub-project al issues Area Xixia King n Xixia department and specific Fifth Floor King project measures Meeting Project management during the Room Manageme personnel planting, nt Office processing processing enterprise and and planting production. farmers representativ e Hongsipu 2013.4.20- Hongsipu Hongsipu Supervisor 26 Training Project 21 Forestry Project leader of people about Area Bureau Manageme Finance environme Meeting nt Office Bureau ntal Room Project protection leader of laws, Forestry regulations Bureau and project policies of management Country staff and and planting municipalit farmers y project, representativ related es knowledge of environme ntal pollution caused by fertilizers and pesticide

Table 66：：：：MonitoringMonitoring index system for farmland, woodland, gragrasslandssland and orchard type

1 Vegetation Index

1 2 3 4 5 6

Forest Exotic Shrub Abandon Time Location Type &Grassla Invasi Woodla &Gra ed Cultivat nd on nd area ss Land ed area coverage Numb area area region er

% hm2 hm2 hm2 hm2

Qukou 2014-6- Agriculture FWGO 10.2 473 210 None 2520 None 28 Branch Company 2014-6- Lianhu Farm FWGO 9 230 86 None 1233 None 29 2014-6- Yuquanying FWGO 9 471 200 None 2267 1 30 Farm 2014-7- Hongsipu FWGO 333 1 Xiaojiayao

2 Natural 4 Air Conservation 3 Soil & Soil Erosion Index Quality Area Index Index

1 2 1 2 3 4 5 6 1 2

Soil Soil Erosion Odor

Salinization Pullution

Time Location Type Day Day Day Num. Num. Num.

of of of 2 hm Lev t/(km Dust Storm Flood，

2 el ⋅a) and Wind， d/a

Sand d/a

Wind

d/a Qukou 2014-6- Agriculture FWGO No 26 13 5 No 28 Branch Company 2014-6- Lianhu Farm FWGO No 30 15 5 No 29 2014-6- Yuquanying FWGO No 30 15 5 No 30 Farm 2014-7- Hongsipu FWGO No 40 7 1 Xiaojiayao

5 Groundwater Quality Index

1 2 3 4 5 6 7 8 pH Groun dwater Nitric Turbidim Integratio Solublen Bury Acid Groundwater Bury etry n Water Time Location Type ess Solid in Density in Irrigation Well Turbidity Quality Amount Irrigati (Nitrate Unit Index on Nitrogen) Well

(-lg[H+ Draw Water TDS, Still Water % m3/h NTU ] mg/L Level hm2 mg/L mol/L)

Qukou Agricultu 2014-6 re FW 6.3 12 80 No 863 7.87 7.4 II -28 Branch GO Compan y 2014-6 Lianhu FW

-29 Farm GO 2014-6 Yuquanyi FW 4.8 10.8 80 No 863 7.73 7.4 II -30 ng Farm GO Hongsip 2014-7 u FW

-1 Xiaojiaya GO o

Abbreviations: WLFP: wetlands, landscape lakes and fishing ponds; FWGO: farmlands, woodlands, grasslands & orchards; CC: subcomponent in construction; CO: subcomponent in operation 6 Conclusion

1. From the view of environmental and ecological protection, overall project implementation situation is good. Throughout the project implementation area, the environment condition is quite well, especially the ambient air quality is good. And there is no serious environmental pollution incidents, no pollutants put into the surrounding area, no large amounts of solid wastes from the construction site or improper handling operation, no obvious environmental deterioration in appearance.

2. Some monitoring forms submitted by project implementation agencies to the project management office are still not complete, especially some blank cells written by using monitoring data is not easy to measure and monitor. However, it does not seriously distorted and/or affect the monitoring results.

Problems Some index were not monitored, or more precisely speaking , index of monitoring forms from some project implementation agencies was not completed by monitoring data. The reason is that part-time duty personnels take charge of project management, the new staffs do not quite understand some monitoring index when change, or due to lack of professional equipment, some index in the original monitoring plan are too professional and little impact on the project environment, such as noise, etc. Part of figures or data in some monitoring forms is apparently abnormal which may be caused by negligence of monitoring people or they are amateurs who can not perform monitoring responsibility.

Suggestion 1 Project Management Office will recheck all monitoring forms; urge subproject implementation agencies which has submitted incomplete monitoring form and monitoring personnel who were not complete their monitoring tasks responsibly to replenish blank and/or wrong cell. If the monitoring personnel of the implementation agency are not competent for monitoring duty, we will replace those who are capable and responsible; take some technical trainings of capacity building for promoting the monitoring ability and standard of whole project monitoring team. 2 With the help of some professional equipments from environmental protection department, consult environmental monitoring index as the next step, the project mainly contain grapes and other economic forest planting and juice processing factory construction with single structure, besides new uncultivated land reclamation in Hongsipu area, the State Farm new construct or rebuilt on the basis of the existing farmland, so pollution has small effect on the environment. ADB environmental experts please give us requirement simple and useful, strong operability monitoring index according to the project characteristic.

Table 777：7：：：MonitoringMonitoring index system for

Construction Site

6 Pollution index 7Mitigation measure for potential encironmental influence

Time Location Type 1 2 3 4 1 2 3 4

Water air Noise Solid Water air Noise Solid pollution & pollution pollution Wastes(garbage pollution & pollution pollution Wastes(garbage waste water & sludge) waste water & sludge) The location

keep away Transport to the Qukou from designated area Agriculture 2014-6-30 CC None None None slight None None residential and spray water Branch area,affect timely for Company the local reducing dust resident slightly The location

keep away Transport to the from designated area Nuanquan 2014-6-30 CC None None None slight None None residential and spray water Farm area,affect timely for the local reducing dust resident slightly

红寺堡镇肖 家窑 2014.6.20 CC None None None slight None None None None Hongsipu Xiaojiayao