Guangxi Wuzhou Urban Development Project

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Environmental Assessment Report

Summary Environmental Impact Assessment Project Number: 40642 August 2008

People’s Republic of China: Guangxi Wuzhou Urban Development Project

Prepared by the Wuzhou municipal government for the Asian Development Bank (ADB).

This summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (as of 1 August 2008)

Currency Unit – yuan (CNY) CNY1.00 = $0.1464 $1.00 = CNY6.8312

ABBREVIATIONS

ADB – Asian Development Bank dB(A) – A-weighted decibel Dongtai – Wuzhou Dongtai State Assets Operation Corporation Ltd. EIA – environmental impact assessment EIRR – economic internal rate of return EMC – environmental management company/consultant EMP – environmental management plan EPB – environmental protection bureau GEPB – Guangxi Environmental Protection Bureau GIS – geographical information system IEM – independent environmental monitor NO2 – nitrogen dioxide PLG – project leading group PM10 – particular matter smaller than 10 micrometers PPMS – project performance management system PRC – People’s Republic of China SEIA – summary environmental impact assessment SEPA – State Environmental Protection Administration SO2 – sulfur dioxide TEIAR – tabular environmental impact assessment report WDRC Wuzhou Development and Reform Commission WEMS – Wuzhou Environmental Monitoring Station WEPB – Wuzhou Environmental Protection Bureau WMG – Wuzhou municipal government WPMO – Wuzhou project management office WWRB – Wuzhou Water Resources Bureau WUIMB – Wuzhou Urban Infrastructure Management Bureau WWTP – wastewater treatment plant

WEIGHTS AND MEASURES

‰ – per mill (per thousand) ha – hectare km – kilometer km2 – square kilometer m – meter m2 – square meter m3 – cubic meter m3/d – cubic meters per day mg/m3 – milligrams per cubic meter mm – millimeter

NOTE

In the report, “$” refers to US dollars.

CONTENTS

Page

MAPS I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 2 III. DESCRIPTION OF ENVIRONMENT 11 A. Physical and Ecological Resources 12 B. Economic Development 13 C. Quality of Life Values 15 D. Natural and Cultural Heritage 17 IV. ALTERNATIVES 18 A. With- and Without-Project Scenario 18 B. Project Alternatives 19 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 20 A. Incremental Environmental and Social Benefits 20 B. Design Considerations 22 C. Soil Erosion 23 D. Water Quality and Drainage 24 E. Air Quality 26 F. Noise 27 G. Solid Waste 29 H. Flora 31 I. Land Acquisition and Resettlement 31 VI. ECONOMIC ASSESSMENT 32 A. Environmental Protection Investments 32 B. Environmental Benefits 32 C. Economic Internal Rate of Return for Environmental Management 32 VII. ENVIRONMENTAL MANAGEMENT PLAN 33 A. Objectives 33 B. Mitigation Measures 33 C. Organization for Environmental Management 33 D. Inspection, Monitoring, and Reporting 34 E. Mechanism for Feedback and Adjustment 34 F. Environmental Management Capacity in Wuzhou 34 VIII. PUBLIC CONSULTATION AND DISCLOSURE 35 A. Information Disclosure and Public Consultations 35 B. Future Information Disclosure and Public Consultation Program 36 IX. CONCLUSIONS 37 A. Project Benefits 37 B. Environmental Safeguard Assurances 37 C. Overall Conclusion 38

APPENDIXES 1. Environmental Management Plan 2. Air Quality Monitoring Points in Wuzhou City 3. Water Quality Monitoring Points in Wuzhou City

Map 1

106 o 00'E 111o 00'E

GUANGXI WUZHOU URBAN DEVELOPMENT PROJECT IN THE PEOPLE'S REPUBLIC OF CHINA

H U N A N

26 o 00'N 26 o 00'N G U I Z H O U

Guilin

Hechi Yizhou Lipu Liuzhou

Baise Y U N N A N Tianyang GUANGXI ZHUANG Tiandong AUTONOMOUS REGION Wuzhou Pingguo Litang Longan Guigang Tanluo NANNING Daxin VIET NAM Yulin Fusui Chongzuo G U A N G D O N G

Pingxiang Ningming Qinzhou Fangcheng Dongxing 22 o 00'N N 22 o 00'N Beihai

0 25 50 75 100 125

Kilometers

Project City Provincial Capital City/Town G u l f o f T o n k i n Port Expressway National Road Provincial Road Railway River Prefecture Boundary H A I N A N Provincial Boundary International Boundary Boundaries are not necessarily authoritative.

106 o 00'E 111o 00'E

08-1577 HR

TOPOGRAPHIC MAP OF WUZHOU IN THE PEOPLE'S REPUBLIC OF CHINA

ZAOCHONG RESETTLEMENT SITE

PINGMINCHONG GEOHAZARD HONGLING SITE ROAD NETWORK 0 8 M - 1 7 a 0 5 p a

H 2 R MAJOR GEOHAZARD SITES IN URBAN WUZHOU IN THE PEOPLE'S REPUBLIC OF CHINA

Guijiang R.

Textile Factory East Mudslide Technical School Technical School Mudslide Longmumiao Mudslide DATANG Pingminchong Mudslide

Pingming Road Primary School Dying Factory East Mudslide TV College Public Health School 7th Secondary School Bangshan West Mudslide Shiguchong Mudslide Pharmaceutical Group Corporation South Mudslide Zhongshan Bingquanxilu Mudslide Jizhuangshan Park Teacher Bangshan Mudslide Farm Machinery Company Mudslide Northeast Mudslide College Yiyuanchong Mudslide Hebin Park Xijiang Bridge

Xijiang River Changzhou Island

Park Mudslide Area School N Main Road Other Road River 0 1 2 The Xijiang River is called Xunjiang River

0 before it receives Guijiang River.

8 Kilometers M - 1 7 a 0 5 p b

H 3 R LOCATION MAP OF SUBPROJECTS IN WUZHOU IN THE PEOPLE'S REPUBLIC OF CHINA Project Area and Phase I of Urban Expansion Phase II of Urban Expansion Project Site Outer Ring Expressway Main Road Other Road WUZHOU Planned Railway (Luoyang-Zhanjiang) INDUSTRIAL PARK River r t o e

v G i

u R

in g n a i j i u

ZAOCHONG NEW COMMUNITY SITE Railway Station PINGMINCHONG GEOHAZARD RESETTLEMENT & PREVENTION

HONGLING ROAD NETWORK to Guangdong Xijiang River

XIJIANG FOURTH BRIDGE

Changzhou Island SOUTH BANK ROAD NETWORK

Xinj iang River TANGYUANG INDUSTRIAL PARK

CANGWU DISTRICT ing to Nann N

0 1 2 3 4 0 8 M - 1

7 Kilometers a 0 5 p c

H 4 R I. INTRODUCTION

1. This report summarizes the results of the environmental impact assessment (EIA) of the Guangxi Wuzhou Urban Development Project. It is prepared in accordance with the requirements of the Environment Policy (2002) and Environmental Assessment Guidelines (2003) of the Asian Development Bank (ADB) on the basis of prepared domestic EIA reports that meet the requirements of the People’s Republic of China (PRC) EIA Law, 2003,1 and associated regulations. The domestic EIA reports include three environmental impact statements and two tabular environmental impact assessment reports (TEIARs) as follows:

(i) TEIAR for the Pingminchong geohazard resettlement and prevention; (ii) TEIAR for the Zaochong resettlement site; and (iii) environmental impact statements for the Hongling road network.2

2. Qualified local institutes prepared the domestic EIA reports using methodologies and standards consistent with relevant guidelines established by the PRC State Environmental Protection Administration (SEPA). The Guangxi Environmental Protection Bureau (EPB) approved the environmental impact statements for the Hongling road network; and the Wuzhou EPB (WEPB) approved the TEIARs for the Pingminchong geohazard resettlement and prevention and Zaochong resettlement site. The project preparatory technical assistance (PPTA) consultants assisted in finalizing the EIA reports, particularly in preparing the environmental management plans (EMPs).

3. Soil erosion prevention plans were prepared for the bridge, road networks, Pingminchong rehabilitation site, and Zaochong resettlement site in accordance with the PRC Law on Soil Erosion Prevention Control, 1991. The Wuzhou Water Resources Bureau reviewed and approved the soil erosion prevention plans.

4. As part of the preparation leading to the PPTA, ADB commissioned a geohazard situation analysis to better understand the issues and needs in Wuzhou.3 Domestic feasibility studies and resettlement plans were prepared under the guidance of the PPTA consultants. The findings of these studies were incorporated in the summary environmental impact assessment (SEIA).

5. A detailed description of the EMP is presented in Appendix 1. The EMP entails a summary of the anticipated impacts and mitigation measures, environmental monitoring program, public consultation program, responsibilities for implementation and supervision, institutional strengthening and training plan, reporting and supervision, work plan, cost estimates for environmental management, and mechanism for feedback and adjustment.

1 Ministry of Environmental Protection. 2003. EIA Law of the People’s Republic of China. Beijing. 2 The EIA Institute of the Guangxi Academy of Transportation Sciences (Class B EIA Certificate) prepared the environmental impact statements for the Hongling road network. The EIA Division of the Wuzhou Academy of Environmental Protection Sciences (Class B EIA Certificate) prepared the TEIAR for the Pingminchong geohazard resettlement and prevention, and the Jiangxi Academy of Environmental Protection Sciences (Class B EIA Certificate) prepared the TEIAR for the Zaochong Resettlement Site. 3 Chuan, Tang. 2007. Geological Hazard Management in Wuzhou (prepared for Asian Development Bank). Chengdu University of Technology: State Key Lab for Geohazards Prevention. 2

II. DESCRIPTION OF THE PROJECT

6. Urban development in Wuzhou is severely constrained by its geological and geographic conditions. The city is located in a mountainous region; two rivers divide it into three parts. The city proper is on the north bank of Xunjiang River,4 which is further divided by Guijiang River into (i) the old urban center on the east, and (ii) a fast-growing urban center on the west. The south bank of Xunjiang River is undeveloped. Before the development of the new urban area on the west side of Guijiang River in the 1980s, residents tended to build their houses on the marginal lands because of the limited flat land available around the old urban center; this gradually expanded up the mountains along the major valleys. The mountains in Wuzhou are mainly loose earth formation, eroded granite, and clastic rocks, and are vulnerable to geological disasters including landslides, collapses, and mud and debris floods. Many of these valleys, though densely populated, are classified as geohazard-prone areas. Many parts of Wuzhou are prone to flooding.

7. With support from the central and autonomous region governments, Wuzhou municipal government (WMG) has made enormous investments to strengthen disaster prevention and control over the past 50 years. It has implemented numerous engineering control projects to stabilize the mountain slopes by building and rehabilitating the retaining walls. These measures have played an important role in combating geological disasters. However, traditional control and prevention measures, particularly the repeated building of retaining walls, have not always been an economical and optimal solution to the geohazard. People living in the geohazard- prone valleys remain vulnerable to landslides despite the existence of concrete retaining walls. To strengthen urban sustainability and to provide residents with safer and more secure living conditions, Wuzhou needs to combat geohazards in a thorough and systematic manner.

8. The Project represents an innovative approach to geohazard management in the PRC and Wuzhou urban development strategy. The underlining principle of the new approach is to shift the focus of geohazard management from disaster rehabilitation to prevention. Under the Project, prevention of geological disaster is to be achieved through integrated public interventions and several innovative approaches. The Project espouses following integrated interventions: (i) carefully designing and phasing an urban planning strategy for medium- to long-term urban development, (ii) relocating people currently living in the geohazard-prone zone to the newly developed geohazard-free urban center, (iii) applying advanced engineering measures to convert the evacuated geohazard-prone valley into geohazard-free land for urban redevelopment, (iv) building a comprehensive and flood-proof urban road network together with associated municipal services to promote and facilitate urban expansion into the geohazard-free Hongling area, and (v) strengthening the city’s geohazard forecasting and early warning capability to improve the effectiveness of its geohazard management. The Project is expected to play a demonstration role for many other cities under similar geological conditions in the PRC.

9. The PPTA identified the implementation phases of this new urban development strategy. The first phase includes the Pingminchong geohazard resettlement and prevention and the Hongling road network, as contained in the original project proposal, to address the immediate priorities of eliminating the geohazard risks for more than 6,000 Pingminchong residents, directing future urban development to the geohazard-free Hongling area, and supporting Wuzhou to become the regional transportation hub. A geohazard early warning and forecasting system is recommended to form part of the first phase to amplify the benefit of the geohazard resettlement and prevention intervention at Pingminchong by addressing WMG’s priority of

4 The Xijiang River is called Xunjiang River before it receives the Guijiang River.

3 improving the accuracy of geohazard forecasting and management. The Xijiang 4th bridge and south bank road network are scheduled for the second phase, and their timing and financing sources will be determined as urban development in Wuzhou progresses. The ADB Project will support the first phase of the new urban development strategy.

10. The Project comprises three subprojects: (i) Pingminchong geohazard resettlement and prevention, (ii) Hongling road network, and (iii) geohazard early warning and forecasting system. The three subprojects are interrelated to the theme of geohazard management: (i) the Pingminchong geohazard resettlement and prevention subproject will pilot a new approach to geohazard management that can be replicated in Wuzhou for the dozens of other major geohazard sites, (ii) the Hongling road network subproject will provide for sustainable urban development by directing future urban development to geohazard-free areas, and (iii) the geohazard early warning and forecasting system subproject will increase the capacity of the WMG to minimize the loss of life and property through improved forecasting accuracy.

11. The location map of Wuzhou City is in Map 1, topographic map in Map 2, key geohazard sites in Map 3, and the subprojects and two phases of urban expansion in Map 4.5 Narrative descriptions of the subprojects are provided in Table 1.

Table 1: Description of Subprojects Subproject Description Pingminchong Build a new resettlement community and move the highly landslide-prone Geohazard community of Pingminchong with 6,015 residents in 1,919 families. The Resettlement and subproject will then develop the valley into a piece of landslide-free urban land Prevention by cutting the mountain slopes and filling up the valley into terraces treated with geohazard prevention measures. The treated landslide-free land will be made available for urban redevelopment. The Zaochong resettlement community is located on the edge of a well-serviced, centrally located, mixed neighbourhood. It occupies 18.31 ha and will involve 413,746 m2 of residential housing and auxiliary structures. This component represents a new model for integrated urban development combining efforts for (i) disaster prevention, (ii) human habitat improvement, and (iii) redevelopment of old urban areas.

Hongling Road Construct a 34.1 km urban road network with the associated water supply Network pipelines, drainage and sewage pipelines, lighting system, traffic control facilities, and green areas for the development of Hongling, a new urban area on the north bank of Xunjiang River with a planned service area of approximately 540 ha and a planned service population of approximately 100,000. It will help keep residents away from the flood- and geohazard-prone areas in the old city centers.

Geohazard Early Establish a GIS-based geohazard early warning and forecasting system for Warning and urban Wuzhou to help reduce damage and loss of property and lives from Forecasting System geohazard. The system will contain computers, field equipment, data transmission, and information processing and management software.

GIS = geographical information system, ha = hectare, km = kilometer, m2 = square meter. Sources: PPTA Draft Final Report.

5 The geohazard early warning and forecasting system subproject will cover the entire city.

12. The satellite images of the Pingminchong geohazard resettlement and prevention site and the Zaochong resettlement community site are presented in Figures 1–3. The layout and cross-sectional profiles of the Pingminchong geohazard site after rehabilitation are provided in Figures 4–5. The layout of the Hongling road network is in Figure 6, and the framework design of the geohazard early warning and forecasting system in Figure 7.

13. The Project is estimated to cost approximately $200 million; ADB will provide a $100 million loan and the WMG and domestic commercial loans will finance the reminder. The Project will be implemented over 6 years from 2009 to 2014.

14. The WMG has designated the Wuzhou Development and Reform Commission as the Executing Agency, and the Dongtai State Assets Investment and Management Corporation (Dongtai) as the Implementing Agency. Dongtai is a corporation wholly owned by the WMG. Upon completion, the road network will be transferred to the Wuzhou Urban Infrastructure Management Bureau (WUIMB) to manage operation, Dongtai will manage the Zaochong residential community, the resettlement site for Pingminchong.

Figure 1: Location of Zaochong in Relation to Pingminchong

Zaochong

Pingminchong

Figure 2: Satellite Image of Pingminchong Site

Pingminchong

Geohazard Resettlement and Prevention Site

Figure 3: Zaochong Resettlement Community and Surroundings

ZAOCHONG RESETTLEMENT COMMUNITY

West Rin g Road

08-2402c HR 8

Figure 4: Layout of Pingminchong Geohazard Site after Rehabilitation

N Residential Area Parking Area Public Park Area Green Open Space 1 Cross Section Roads Retaining Wall Site Boundary Boundaries are not necessarily authoritative.

08-2402a HR Figure 5: Cross-Sectional Profiles of Pingminchong Site after Rehabilitation

Cross-Sectional Profile (3) of Pingminchong 110,000

100,000

90,000 Slope Stabilization 80,000 Slope Stabilization th Wuzhou 8 Retaining Wall 70,000 Middle School Retaining Wall 60,000

50,000 Meter 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360

Cross-Sectional Profile (2) of Pingminchong 100,000 Slope Stabilization 90,000 Slope Stabilization Retaining Wall 80,000

70,000 Retaining Wall

60,000 Wuzhou 8th 50,000 Middle School

40,000 35,000 Meter 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360

Retaining Wall Cross-Sectional Profile (1) of Pingminchong City Health School 90,000 Slope Stabilization 80,000 Slope Stabilization Retaining Wall 70,000 Slope Stabilization Retaining Wall 60,000 Baiyun Road 50,000

40,000 33,000 Meter 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 9 0 8 - 2 4

0 Existing Elevation 2 b

Design Elevation H R 10

Figure 6: Layout of Hongling Road Network

n tio ta S ay ilw Ra

Sanlong Park

Rose Lake Park

Xunjiang River

Residential Area National Road Office Area Other Road Industrial Area Railway Medical/Health Area Project Boundary Public Facility Boundaries are not necessarily authoritative. Public Park

08-2402d HR 11

Figure 7: Framework Design of Wuzhou Geohazard Early Warning and Forecasting System

Wuzhou Geohazard Early Warning and Forecasting System (Includes geographical information system-based, computers, field observation equipment, meteorological database, slope and soil database, data transmission system, data processing, decision support system)

Geohazard Technical Geohazard Information Geohazard Emergency

Subsystem Dissemination Subsystem Response Subsystem (Includes editing and updating, (Includes dissemination (Includes response measures, query, spatial analysis, mapping, targets, channels, procedures, commend, organization, visualization, outputs) public education) procedures)

Source: PPTA Draft Final Report.

III. DESCRIPTION OF ENVIRONMENT

15. Wuzhou is a medium-sized city of Guangxi Zhuang Autonomous Region—one of the 12 less-developed western provinces and autonomous regions targeted by the Government for support under the National Strategy for Development of the West. With a population of 3.11 million covering a land area of 12,588 square kilometers (km2), Wuzhou Municipality has three urban districts, three counties, and one county-city under its jurisdiction. In the context of the Project, Wuzhou City refers only to the city proper, comprising the three urban districts of Changzhou, Dieshan, and Wanxiu. Wuzhou City has an urban population of 452,000 and a developed urban area of 32.5 km2.

16. The city is generally divided into two parts. The eastern part consists of (i) the urban district of Wanxiu, which borders Guangdong Province in the east, Guijiang River in the west, Xijiang River in the south, and Baiyunshan Mountain in the north, and (ii) the more than 2000- year-old city center. The western part, consisting of two districts, Changhou and Dieshan, called Hexi (or River West) by the locals, was built in the past 15–20 years.

17. Nicknamed mountain city, Wuzhou City is topographically characterized by lowland in the center surrounded by hills and mountains, with an average altitude of 24 meters (m), generally declining from the hilly north to the alluvial south. Relatively flat lands are found along the narrow strips of the northern banks of the Xijiang River. The north of the city is confined by hills ranging from 70 m to 367 m. More than 20 mountains surround the city, and the mountainous and hilly areas account for approximately 80% of the city’s land mass.6 The 367 m Baiyunshan Mountain is in the northeast.

18. In Wanxiu district, most structures are built on terraces in small valleys running from south to north,7 including Pingminchong. Dieshan and Changzhou districts in the western part of the city have a similar topography to the south and the north, but the central strips of the two newer districts were built primarily by cutting the hill tops and filling the bottoms of the valleys.

6 Water surface accounts for another 9.28%. Flatland accounts for less than 11%. 7 The local name for valley is chong. For example, Pingminchong literally translates into Pingmin valley.

Because of lowland availability and due to the lack of proper planning, many residential and commercial structures are situated too close to geohazard-prone areas where frequent disasters (primarily mudslides) result in loss of property and lives. The mudslides in Wuzhou are attributable to several natural and human factors. The natural factors include deep slopes, loose slope surfaces, water permeability of the soil, and intensity of rainfall. Human triggers include cutting of hill shoes to borrow earth to make construction space, destroy original vegetation on the slope surfaces, and practice inadequate drainage. When structures are built too close to the transport and deposit routes of the mudslides, more damage will be incurred. Because of the long history of the city and lack of land, these situations are common in Wuzhou.

19. The Hongling area is situated along the north bank of Xijiang River, west of the existing urban districts. It is currently largely rural, except for the eastern part close to the existing western urban center, which is semiurban. Rose Lake, situated along the western border of the Hongling area, is currently used for aquaculture and will remain an aquaculture demonstration center. To the north and west are hills and the planned Luoyang–Zhanjiang railway. The Wuzhou railway station, now under construction, is located in this area. This piece of land consists largely of hills with elevation ranging from 16.6 m to 88.3 m, and small portions of alluvial lowland at about 20 m. Some of the lowland is below the flood level and will need to be heightened or protected by flood control structures before it can be used for urban development. The small low hills in the Hongling area and in the adjacent Sanlong area will be used as earth borrows for urban development in the Hongling area. The exposed surfaces are prone to soil erosion and dust generation. At present, the small hills are not geohazards, and will not be after they are leveled for use as earth borrows for elevating the bases of the road network. Future urban development in the Hongling area will apply the avoidance principle by keeping a safe distance from potential geohazard sites along the northern part of the area.

A. Physical and Ecological Resources

20. Climate. Wuzhou City belongs to the subtropical monsoon climatic zone, with hot summers, mild winters, and clear-cut seasons. The average annual temperate is 21.6°C, with the record high of 33.3°C occurring in August and record low of −3°C in February. The average annual rainfall is approximately 1,500 millimeters (mm); over an average of 189 days per year. The precipitation is concentrated in the months of April through September, accounting for 77.4% of the annual total. Rainstorms occur mostly in May through August with an average 5 days per month with daily rainfall at or greater than 50 mm. The heaviest daily precipitation on record is 334 mm. The hourly intensity of precipitation with an occurrence of once every 20 years is 88 mm. The volume and pattern of rainfall are among the major contributing factors to geological disasters.

21. Water Resources. Wuzhou City is situated at the junction of the Xunjiang and Guijiang rivers, where they join to form the Xijiang River. The Xijiang River is part of the Pearl River system. Originating from the neighboring province of Yunnan, the Guijiang River is 426 kilometers (km) long, with 18 km passing through Wuzhou from the north to south. The river serves as the division between the eastern and western parts of the city. The Xunjiang and Xijiang rivers flow through Wuzhou from the west to the east for 21.5 km. Before leaving Wuzhou and entering Guangdong Province, the Xijiang River collects water from 784 rivers in the Guangxi Zhuang Autonomous Region. The average annual runoff of the Xijiang River is 213.3 billion cubic meters (m3). The largest flow rate was 58,700 m3/second with a corresponding highest water level of 27.07 m (10 July 1915), and the lowest flow rate 720 m3/second with a corresponding lowest water level of 1.90 m (3 March 1942). The total water consumption by industry, agriculture, and residential areas accounts for only approximately 1.3

13 per mill (per thousand) (‰) of the average annual runoff, and 2.7‰ of the driest years. Wuzhou is plagued by frequent floods. For example, the city experienced “once-in-a-hundred-year” floods in 1998 and 2005. As a result of the 2005 flood 27 people died, 20 were missing, and hundreds of thousands were evacuated; and direct economic loss was in the millions of dollars.

22. Land Resources. With a unique geographic location and subtropical monsoon climate, Wuzhou Municipality is abundant in natural resources. The forested area covers 870,000 hectares (ha), 72.7% of the municipality area; the standing stock totals 25.28 million m3. With 95,000 ha of farmland, Wuzhou is an important commodity grain base for the Guangxi Zhuang Autonomous Region. The main crops include rice, sweet potato, corn, legume, wheat, sugarcane, cassava, sericulture, and peanut; and gardening products include fruit trees, vegetable, and flowers. The suburb of Wuzhou City is mainly engaged in vegetable, aquatic, and livestock. Wuzhou Municipality has more than 1,000 species of animals, of which 24 are under state protection and more than 40 are under provincial protection. It has more than 578 species of trees, including more than 20 fruit tree species.

23. Flora and Fauna. The area has more than 1,000 species of higher plants, including 578 tree species (409 evergreen and 169 deciduous), and 1,593 species of animals. They include the South China tiger (Panthera tigris amoyensis), Chinese leopard (Felis pardus linnaeus), Francois langur (Trachypithecus francoisis), Chinese sturgeon (Acipenser sinensis), Python (Python molurus bivittatus), Chinese pangolin (Manis pentadactyla aurita), large Indian civet (Viverra zibetha), small Indian civet (Viverricula indica), masked palm civet (Paguma larvata), silver pheasant (Lophura nycthemera), night owl (Glaucidium), and tokay (Gekko gecko linnaeus), which are under state and provincial protection. The 144 aquatic species, including the giant salamander (Andrias davidianus) and Japanese eel (Anguilla japonica), are under state protection. None of these protected species is found in the immediate project area.

B. Economic Development

24. Economic Growth. In 2007, Wuzhou Municipality’s gross domestic product reached CNY32.68 billion, representing an increase of 15.7% over 2006. Fiscal revenue amounted to CNY2.70 billion, an increase of 17.1% over 2006. Total fixed assets investment was CNY15.14 million, or an increase of 24.1%. The value of exports grew by 10.7% to $322 million. Retail sales of consumer goods amounted to CNY11.13 billion, or an increase of 13.5% over 2006.

25. Industrial Development. Wuzhou is one of the earliest industrial bases in Guangxi Zhuang Autonomous Region. As early as the 1920s, Wuzhou was renowned for its thermal power, matches, soap, battery, machinery, textile, metallurgical, pharmaceutical, and chemical industries. Today, Wuzhou’s major industries include textiles, chemicals, food, machinery, electronics, plastics, tannery, pharmaceutical, garments, ship making, printing, gemstones, and other light industries. In 2007, the industrial output of large-scale enterprises grew by 53.8% over 2006 to CNY26.95 billion. The total profit of large-scale enterprises grew by 83.44% to CNY893 million. The industrial output contributed to 64.6% of Wuzhou’s economic growth. The export-oriented industrial zone covers 6 km2 at present, and is planned to expand to 60 km2. Enterprises in the zone can benefit from preferential policies for open coastal cities and western development and from local policy for income tax reduction and exemption. Pretreatment of industrial wastewater is a mandatory requirement for all industrial enterprises.

26. Transport. Infrastructure in Wuzhou has improved steadily. Annual navigation capacity of the three container wharves is now 7 million tons. Water-based transportation can reach Guigang, Nanning, Liuzhou, Guilin, Hong Kong, and Macau. In terms of land-based transport,

Wuzhou is connected by first-grade highways to Guangdong, Hong Kong, and Macau. Wuzhou City is 280 km or 3 hours from Guangzhou City. It is connected by second-grade highways to Nanning, Liuzhou, Guilin, Yulin, and Hezhou. All cities and counties in Wuzhou Municipality are served by the national highway system. Under active planning are the Wuzhou–Guilin, Wuzhou–Nanning, and Wuzhou–Guangzhou expressways, Luoyang–Wuzhou–Zhanjiang railway, Guizhou–Wuzhou–Zhuhai railway, and Wuzhou port, which will make Wuzhou a transportation hub.

27. Urban Development. Wuzhou has many urban problems, particularly overcrowding in the old urban center in the east,8 outdated urban infrastructure services, and increasing threat of geohazards. Since 2000, the WMG invested more than CNY200 million to improve the urban infrastructure in the eastern part of the city. Since 2004, the WMG has focused on the prevention and rehabilitation of geohazards, with a planned investment of CNY446 million on geohazard control, including engineering measures, drainage improvement, slope cutting, and construction of retaining walls. In the meantime, it has allocated CNY110 million for the establishment of three new communities to provide housing for geohazard-threatened households. Moreover, the Urban Development Master Plan (2002–2020)9 sets the direction of urban development to expand to the west and south; this is what the Project will address.

28. According to the land suitability analysis as part of the urban master planning process, very little suitable land is available in the existing urban districts. Unchecked, disorderly urban development undermined the stability of many slopes in urban districts. Because of geohazard threats, most vacant land within the existing urban boundary will need to be treated with engineering measures to develop it into land for future urban development. Hongling is one of nine areas identified with urban development potential. The Project will therefore address the specific need to direct future urban expansion to geohazard-free areas.

29. Urban Transport. The 11th Five-Year Plan (2006–2010) calls for 45 km2 of new urban area expansion and sets a population growth target of 550,000 for urban Wuzhou, a 12% increase over 2006. The plan specifies an increase in the road–population ratio from 9.36 km/person in 2006 to 10.00 km/person by 2010, and a road density of 6 km per km2. In addition, vehicle ownership is anticipated to grow at an average annual rate of 4.7% per year between 2006 and 2020; person-trips at an average annual rate of 5.0% per year; and freight volume at 12.0% per year. The high increase in freight volume is primarily due to the addition of new interprovincial expressways and rail services in Wuzhou that are to commence in the next 2–3 years, and will make Wuzhou the transportation hub.

30. Wuzhou takes pride in (i) being the largest turpentine production base in the PRC, (ii) being the largest synthetic gemstone production base in the world, (iii) having the PRC’s largest variety of types of bridges, (iv) having 2.1 billion m3 of granite reserve, (v) having the country’s earliest memorial for Sun Yat-sen, (vi) being the largest base for breeding pet dogs in Southeast Asia, and (vii) being the largest Presbytis francoisi (French langur monkey) breeding base in Asia.

8 More than 200,000 in a 1.8 km2 area. 9 Guangdong Academy of Urban Planning and Design. 2003. Wuzhou Urban Development Master Plan (2002– 2020) (prepared for Wuzhou Municipal Government). Wuzhou.

C. Quality of Life Values

31. Income and Employment. From 2006 to 2007, average per capita disposable income for urban residents grew by 10.0% to CNY11,362, and average per capita net income for farmers grew by 7.6% to CNY3,252. More than 15,900 jobs were created in 2007. The registered urban unemployment rate was 3.95% or 0.55% lower than the government-controlled threshold.

32. Education. By the end of 2005, the area had 902 primary schools with 12,200 teachers, 56,700 newly enrolled pupils, 360,300 students total, and primary school enrolment rate of 99.2%. The 154 secondary schools had 9,000 teachers and 200,500 students. In 2005, 7,540 students were admitted to colleges and universities across the country, with the college entry rate from applicants from Wuzhou of 78.2%.

33. Health. By the end of 2005, the area had 105 health institutions (excluding private sector operations), 6,290 patient beds, 7,422 professional health staff (including 2,905 licensed doctors), and five disease control centers. The new rural cooperative medical system had 495,000 individuals enrolled. By 2007, community heath services covered 90% of the urban population; cooperative medical care covered 76.7% of rural residents.

34. Urban Infrastructure Services. By the end of 2006, the urban road network in Wuzhou Municipality had a total length of 360 km or an increase of 10.2 km during 2006. Road pavement increased by 136,000 m2 over 2006 to 6.40 million m2 (an average of 9.36 m2/person). The built-up urban area totaled 70.05 km2. The number of operating buses increased to 336, 31 more than in 2005, i.e., 5.18 buses per 10,000 people. Annual passenger volume grew by 8.75% over that of 2005 to 50.99 million. About 95% of the urban population was serviced with portable water, and 86% by natural gas.

35. Environmental Quality. In 2006, the environmental quality in Wuzhou was maintained to excellent and good grades. All environmental quality parameters met the national ambient environmental quality standards. Specifically, air quality met the requirements of class II of the national air quality standards, 10 with the annual average concentration of particular matter 3 smaller than 10 micrometers (PM10) being 0.031 milligrams per cubic meter (mg/m ) (compared 3 3 3 to the class II threshold of 0.10 mg/m ), nitrogen dioxide (NO2) 0.024 mg/m (0.04 mg/m ), and 3 3 sulfur dioxide (SO2) at 0.026 mg/m (0.06 mg/m ). The average urban noise level was 49.9 A-weighted decibels (dB[A]); 11 average traffic noise was 66.2 dB(A). All water quality parameters met the class III of the national surface water quality standards.12 At the end of 2006, the city had 885,800 ha of forests, giving a forest cover ratio of 72.0%.

36. The baseline conditions of air quality, water quality, and noise environment are provided in Tables 2–4.

10 Ambient Air Quality Standards, GB3095-1996, State Environmental Protection Administration. 11 Urban Noise Standards, GB3096-93, State Environmental Protection Administration. The class II for mixed residential, commercial, and industrial area is 60 dB(A) for daytime and 50 dB(A) for nighttime. 12 Class II surface water quality standards apply to primary protected drinking water supply areas, habitats for precious aquatic species, spawning grounds for fish and shrimps, and feeding grounds for juvenile fish. Class III surface water quality standards apply to secondary protected drinking water supply areas, wintering grounds for fish and shrimp species, migratory routes for aquatic species, aquaculture and fishery production bases, irrigation, and public swimming.

Table 2: PM10 Concentrations at Three Selected Air Quality Monitoring Points Minimum Maximum Average Class II of No. of Concentration Concentration Concentration Standard Violation Location Samples (PPM) (PPM) (PPM) (PPM) Wangpu 20 0.002 0.103 0.030 0.10 0 EPB Building 322 0.011 0.107 0.043 0.10 0 Yungai 351 0.011 0.058 0.029 0.10 0 Primary School

Wuzhou City 763 0.011 0.107 0.031 0.10 0 EPB = environmental protection bureau, PM10 = particular matter smaller than 10 micrometers, PPM = parts per million. Notes: 1. Wangpu is located upwind of the air shed and is treated as a “reference point.” It is excluded in calculating the values for Wuzhou City. 2. Class II standards refer to Ambient Air Quality Standards (GB3095-1996). Class II standards are for residential districts, mixed residential–transportation–commercial districts, cultural districts, and regular industrial districts in urbanized and rural areas. 3. Data adapted from the 2006 Wuzhou State of the Environment Report. Concentration and standard are in PPM. 4. Appendix 2 provides the location map for all air monitoring points in urban Wuzhou. Sources: Domestic environmental impact assessments prepared by the Institute of Environmental Sciences, Guangxi Academy of Transportation.

Table 3: Water Quality at Five Selected Monitoring Points

Location Flow pH DO BOD Oils NH3-N Phenol Cyanide Longping Low flow 7.77 8.0 1 0.03 0.88 0.001 0.002 High flow 7.83 5.9 1 0.02 0.26 0.001 0.002 Tiejiaoding Low flow 7.71 8.4 1 0.02 0.31 0.001 0.002 High flow 7.84 6.1 1 0.02 0.27 0.001 0.002 Dongshunlou Low flow 7.65 8.3 1 0.03 0.31 0.001 0.002 High flow 7.88 6.0 1 0.02 0.25 0.001 0.002 Shenchong Low flow 7.67 8.2 1 0.03 0.30 0.001 0.002 High flow 7.89 6.3 1 0.02 0.25 0.001 0.002 Jieshou Low flow 7.69 8.9 1 0.02 0.26 0.001 0.002 High flow 7.89 6.1 1 0.02 0.24 0.001 0.002 Class II 6–9 6.0 3 0.05 0.50 0.002 0.05 Standards Class III 6–9 5.0 4 0.05 1.00 0.005 0.20 Standards BOD = biochemical oxygen demand, DO = dissolved oxygen, NH3-N = ammonia nitrogen, pH = measure of acidity and alkalinity. Notes: 1. Unit: mg/l for all parameters, except for pH. 2. The surface water in Wuzhou is designed as class III. 3. All parameters meet class II of the Surface Water Quality Standards (GB3838-2002), except for low-flow conditions at Dongshunlou, which meet class III because NH3-N exceeds the limit of class II. 4. Data adapted from the 2006 Wuzhou State of the Environment Report. All parameters, except for pH, are in miligrams/liter. 5. Appendix 3 provides the location map for all water monitoring points in Wuzhou. Sources: Domestic environmental impact assessments prepared by the Institute of Environmental Sciences, Guangxi Academy of Transportation.

Table 4: Traffic Noise Monitoring Results for 2005 and 2006 Length of Roads Percentage of Monitored Traffic Volume Violation Standard Year (m) (vehicles/hour) (%) Leq (dB(A)) (dB(A)) 2005 21,994 1,713 58.4 69.3 70 2006 21,994 1,754 0 66.2 70 dB(A) = A-weighted decibel, m = meter. Notes: 1. Data adapted from the 2006 Wuzhou State of the Environment Report. Traffic noise is measured along artery roads. 2. Leq refers to energy equivalent noise level. It is a time-averaged sound level; a single-number value that expresses the time-varying sound level for the specified period as though it were a constant sound level with the same total sound energy as the time-varying level. The unit is the decibel, dB(A). Sources: 2006 and 2007 State of the Environment Reports, Wuzhou Municipal Environmental Protection Bureau.

37. The key socioeconomic and environmental indicators of Wuzhou City are summarized in Table 5.

Table 5: Key Socioeconomic and Environmental Indicators of Wuzhou City Indicator Wuzhou Guangxi PRC Population (million) 0.452 50.000 1,314.500 Population Growth Rate (‰) 9.00 8.20 5.28 Per Capita GDP (CNY) 10,803 12,408 15,930 Urban Disposable Income (CNY) 11,362 12,200 11,759 Rural Net Income (CNY) 3,252 3,224 3,587 Growth Rate over 2006 7.6 9.0 7.4 Air Quality Class II — — Surface Water Quality Class II — — Forest Cover (%) 70.70 52.7 18.21 Urban Population with Access to Safe 95.0 88.7 93.0 Drinking Water (%) Urban Households Using Natural Gas (%) 86.0 80.6 82.9 Urban Sewage Centrally Treated (%) 100 10 56 Garbage Disposed in Sanitary Landfill (%) 100 32.5 54 ‰ = per mill (per thousand), GDP = gross domestic product, PRC = People’s Republic of China. Notes: 1. 2007 data for Wuzhou and Guangxi, 2006 data for the PRC. 2. Wuzhou wastewater and treatment plant and landfill began operations in the first half of 2008. Sources: Compiled by the project preparatory technical assistance consultants from statistical yearbooks of Wuzhou, Guangxi, and the PRC.

D. Natural and Cultural Heritage

38. Heritage Sites. Due to its unique geographic features and more than 2,000-year history, Wuzhou is rich in natural and cultural heritage. In 2002, Wuzhou City was placed on the “List of National Excellent Tourist Cities.” The city has more than 250 cultural and scenic sites, including 16 that are under state and provincial protection. The well-known natural and cultural heritage sites include Qiloucheng, Longmutai Temple, Si’en Temple, Sun Yat-sen Memorial, relic site of the British Consulate, Yunyang Jiang, Baiyun Mountain Park, and Dragon Lake National Forest Park. None of the heritage sites are located in the project area.

39. Ethnic Minorities. The 21 minorities have a total population of 51,100, accounting for 2% of the municipality’s population. Cantonese is widely spoken, with more than half of the urban population having relatives in Guangdong, Hong Kong, and Macau. .

IV. ALTERNATIVES

40. During the project design, various alternatives were proposed, screened, and compared with technical, economic, and environmental criteria. In terms of the environmental comparison for the alternatives, the primary objective was to identify and adopt options with the least adverse environmental impacts and maximum environmental benefits. Moreover, the Project will reduce the threat of geohazards and therefore increase the safety of residents.

A. With- and Without-Project Scenario

41. Compared with the with-project scenario, the without-project scenario would result in restricted availability of land for urban development. This in turn would represent a missed opportunity to move people already threatened by geohazards. On the other hand, the restricted availability of land for urban development would mean that future growth would have to take place in geohazard areas, which would result in more people exposed to geohazards and higher costs of land rehabilitation and protection by conventional engineering measures such as slope cutting, drainage construction, retaining walls, pillars, and grids. The Project will pilot a new model of geohazard management that focuses on “prevention first” by avoiding geohazards.

42. The commonly used conventional engineering measures for geohazard control include (i) securing the foot of the hill, (ii) slope cutting, (iii) slope stabilization measures such as revegetation, (iv) construction of drainage systems, and (v)use of retaining walls. These measures are depicted in Figure 8.

43. As a special feature, the backfilled material will be stabilized with pillars resting on impermeable layers of bedrock and connected by vertical grids. The structures will be made of reinforced concrete.

44. Most of the geohazard-threatened communities in Wuzhou have poor urban infrastructure services, particularly water supply, sanitation, power supply, transport and communications, and hospitals and schools. This is due to years of neglect by government and individual citizens, and results in imminent geohazard risks and incidents on an annual basis. In this respect, the without-project scenario also represents a missed opportunity for geohazard- threatened residents to enjoy these environmental amenities.

45. A geohazard event usually produces a large volume of earth and mud, which clogs urban drainage and causes siltation of waterways. The exposed earth surface of the slope can produce soil erosion during rainy days and dust during dry and windy days for years before it is rehabilitated and replanted. The increased availability of geohazard-free land would mean reduced environmental damage by future urban development avoiding vulnerable areas that would trigger mudslides.

46. Floods in Wuzhou will continue for many years. This will represent an added vulnerability for geohazard evacuation. Redirecting future development to the west and south will help mitigate this vulnerability.

Figure 8: Commonly Used Engineering Measures for Geohazard Control

Drainage System

Slope Stabilization Measures: - Slope Cutting

Retaining Wall - Revegetation

Photo taken in Pingminchong

B. Project Alternatives

47. The new urban development strategy developed with the help of this Project emphasizes the need for urban growth to the west and south, but in a phased manner. The limited land available east of the old city center that borders Guangdong Province is unsuitable as it is prone to geohazards. The north of the city is confined by mountains and hills. The Hongling, Sanlong, and South Bank areas are among the pieces of land most suitable for future expansion. At the request of the WMG, the local urban planning and design institute and the PPTA consultants analyzed the three areas. According to the resulting recommendation, both Hongling and Sanlong areas be developed during the first phase, with Hongling as a first priority for immediate development, because of cost-effectiveness and its proximity to the existing urban center, railways, interprovincial speed rail, and interprovincial expressways; the rail and expressways are under construction or active preparation.

48. For the Pingminchong geohazard resettlement and prevention subproject, the use of conventional engineering measures would not eliminate geohazard risks. Several alternatives were compared with the recommended option of slope-cutting, terracing, drainage, pillars, grids, and retaining walls. The recommended option provides assurance from mud and landslide recurrence. The alternative resettlement sites were examined, and the Zaochong site was

20 chosen for its convenient location, easy access to existing services, and freedom from geohazard.

49. On the top western side of Pingminchong is a row of 5- or 6-story residential houses. The alternative of resettling these residents was considered. As these houses are relatively new, their relocation is not considered to be cost-effective or financially feasible. This selected option has no viable alternative. A risk assessment of the safety of these houses during construction and postconstruction concluded that the reduced slope length will add more stability to the slopes, and that the risk would be low if mitigation measures are taken. The suggested mitigations include reinforcing the slopes between Pingminchong and the houses, with earth fills at the hill shoes being undertaken first. The technical design of the component is solid. The houses will be monitored during construction. The tendering document for the Pingminchong component will include a special requirement for proposed measures to ensure the safety of the upper buildings. Moreover, implementation supervision will be strengthened, and training on ensuring the safety of the upper buildings will be provided to the construction contractors prior to commencement of construction activities. The hills above the houses will be part of the geohazard early warning and forecasting system, and field observation equipment will be installed. With these mitigation measures, the potential impact on the upper residents will be insignificant.

50. Recommendations for earth compacting each 5 m of depth were adopted for the Pingminchong site rehabilitation to ensure the safety of the infrastructure. Options for the implementation schedule were proposed and examined, and a 1-year construction period was adopted to allow at least one rainy season for the filled earth to settle.

51. The Hongling road network is based on the new urban development strategy that the Project proposes. It will feed into the update of Wuzhou’s Urban Development Master Plan (2002–2020) (footnote 10). The routing, width, and right-of-way were determined on the chosen urban growth scenario.

52. Because the Hongling area experiences flooding, the chosen design requires the beds of the road network in Hongling to be elevated by an average of 4–5 m. The elevated roads will serve as flood escape routes for local residents. Moreover, flood levels will be monitored for the road network area during road operation, and, if needed, mitigation measures will be identified and implemented.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Incremental Environmental and Social Benefits

53. Although the Project is not expected to generate any direct incremental environmental benefits, it is anticipated to produce multiple social benefits. These social benefits are centered on the increased amount of safe land for urban development, and reduced threat from geohazards. At present, urban Wuzhou has more than 100 geohazard sites, including 13 that pose the most serious threat (Map 3). The Project will resettle the community of Pingminchong in the hazard-free area of Zaochong, one of the 13 priority sites for resettlement and/or rehabilitation. The resettlement program involves 6,015 people in 1,919 households, five public institutions, two state-owned enterprises, two collectively owned enterprises, one private enterprise, seven small businesses, one school, one postsecondary school, and auxiliary urban infrastructure. In recent years, the community of Pingminchong has experienced many serious mudslides that resulted in the loss of lives and property. Moreover, the threat of geohazards has

21 discouraged investment by residents and governments in private housing and urban infrastructure services. The added social benefit to Pingminchong residents is better housing and improved road networks, sanitation, environmental amenities, and other urban infrastructure services. Environmental benefits include avoided environmental damages such as clogging of the urban drainage system, siltation of waterways, and soil erosion and dust from exposed slopes.

54. Traditional mechanisms for geohazard management rely entirely on budget support from the local government. They do not have any self-financing capability. Financial constraints have resulted in local government being able to make only limited interventions for emergency response and rehabilitation for disaster relief and rebuilding of damaged retaining walls and other engineering structures. A new mechanism will be introduced under the Project to shift the focus of geohazard management from disaster rehabilitation to prevention. In particular, under the Pingminchong geohazard resettlement and prevention component, people living in the geohazard-prone valley will be evacuated and relocated to a newly constructed resettlement community, thus removing the geohazard threat forever. Engineering measures will be conducted to (i) cut the mountain slope to a safe and landslide-free degree; (ii) build up the valley into terraces; and (iii) install a sufficient drainage system, thus developing the valley into a piece of geohazard-free land for urban redevelopment. The treated land will be auctioned for development by the State Land Reserves Center under the WMG. The WMG plans to use the net gains from the auction, after deduction of the geohazard control treatment costs, to set up a revolving fund to finance geohazard prevention and control projects for other geohazard-prone valleys of the city. This innovative approach will introduce a self-financing element into geohazard prevention and control, and is expected to achieve the joint goals of disaster prevention, human settlement improvement, and urban redevelopment. Policy dialogue has been carried out with the WMG on establishing the revolving fund. The WMG has made the commitment to do so, if the Pingminchong subproject is successful. This innovative approach will not be possible without sizeable lending support from ADB to complement WMG investment to first build a well-equipped resettlement community to receive the relocated households from the geohazard-threatened Pingminchong area. This innovative approach to geohazard management and mitigation will have a demonstration effect, and provide the opportunity for replication in Wuzhou, throughout the PRC, and in other parts of Asia.

55. Through decades of organized combat against geological disasters, Wuzhou has developed a well-organized geohazard management system combining WMG efforts, including specialized geohazard monitoring and emergency response agencies, district governments, communities, and households in geohazard-prone valleys. The system has proved to be effective in terms of emergency response. Local practices are well-established but done on a small scale and without the benefit of international experience. One major shortcoming of the system is the lack of real-time geohazard forecasting and early warning capability. Most of the geohazard attacks have been detected through massive manual observations mobilized by communities and households, and reported through telephone calls. Based on an existing computerized geographic information system (GIS) for land resources management in Wuzhou, the Project will help the WMG (i) establish a GIS-based geohazard real-time automatic monitoring and reporting system, and (ii) develop a geohazard simulation and forecasting model to facilitate decision making on early warning for geohazard attacks and accelerate the emergency response for geological disaster. The system will be one of the first such systems to be introduced to strengthen urban geohazard management in the PRC. It incorporates the successes and lessons from other systems that are operating or under development across the country, including those for the Three Gorges area (Chongqing Municipality), Shenzhen (Guangdong Province), Anxi County (Fujian Province), Guilin City (Yunnan Province), Ya’an

City (Sichuan Province), and Zhejiang Province. The Wuzhou system will utilize community- based methods that have evolved over many years. Furthermore, this intervention includes a capacity-building program to strengthen the capability of government and technical institutions in preventing damage from geohazards. The risk-conscious Pingminchong community will be included in this project intervention.

56. The Hongling road network subproject will service a total area of 540 ha and population of 100,000 for future urban growth until 2033. This incremental hazard-free land will allow the WMG to move people in other geohazard-prone areas to safe communities, and for urban expansion into geohazard-free land. Therefore, the Hongling road network will support the WMG’s strategy of geohazard management and sustainable urban development, in addition to other economic development benefits.

57. The associated facilities for the Hongling road network are properly designed. The water supply will be drawn from the clean and adequate Xunjiang River, and be distributed to the future residents. Sewage will be transmitted through the sewerage networks to the municipal wastewater treatment plant (WWTP) that began operating in the first half of 2008. The Hongling area will receive clean hydropower from the nearby Chanzhouba multipurpose dam on the Xunjiang River, which will begin power generation in 2009.

58. The possibility of the Hongling road network aggravating flood risks was investigated. No evidence has been found in the Hongling area for the past few decades. The mitigation for flooding risk in urban Wuzhou was achieved by building culverts in locations of flood routes. This practice will be adopted for the Hongling road network.

B. Design Considerations

59. The following mitigation measures will be followed during the design phase: (i) All project sites will be carefully selected to avoid or minimize potential adverse impacts on the environment and surrounding communities. (ii) The road network subproject will be located and designed to minimize resettlement impacts. (iii) Adequate technical design and scheduling of construction activities for the subprojects will provide for safety, sanitation, and environmental impacts that meet government regulations. (iv) All subprojects have undergone the EIA process under the PRC laws and regulations. The EIA documents were prepared by qualified EIA institutes, reviewed by an expert panel, and approved by the Guangxi and Wuzhou environmental protection bureaus. Appropriate environmental mitigation and monitoring measures are included in the EMP. (v) Environmental mitigation measures as contained in the EMP will form part of the design documents for the subprojects, and be included in the contracts for procurement of goods and services. All contractors and subcontractors will be required to comply with the EMP. (vi) The environmental monitoring program will be incorporated into the overall project design to ensure that environmental impacts are closely monitored and that construction and operating activities are closely supervised against the approved EMP.

60. The PRC and many other countries have landslide risk assessment standards. However, no landslide engineering standards are available in the PRC or in other parts of the world

23 because of vastly varying local conditions. Yet, best international and e PRC national engineering practices are available that can be of reference to Wuzhou. In additional, Wuzhou has accumulated rich experience and developed its own best practices that are adapted to the local geological and meteorological conditions, owing to its long history of geohazard events and mitigation efforts. During the early stages of project preparation leading to the commencement of the PPTA, ADB commissioned a study of geohazards in Wuzhou by a nationally renowned geohazard expert (footnote 3). The PPTA consultant team included two nationally recognized geohazard experts who conducted the technical analysis in partnership with a local design institute that has rich local experience. These international, national, and local best practices were used in the project engineering analysis, and will be adapted or adopted when the Project proceeds to the design stage. The knowledge products, developed with ADB technical assistance, will make valuable contributions to improving the project design.

C. Soil Erosion

1. Construction Phase

a. Geohazard Resettlement and Prevention

61. The geohazard resettlement and prevention subproject contains two components that have the potential to cause soil erosion. It involves the demolition of existing buildings; removal of 16.8 million m3 of earth and refilling for land leveling; and construction of 39,091 m2 of local roads, 8,464 m of drainage, and 34,628 m3 of retaining walls. A resettlement community will be built at Zaochong, an open urban space about 5 km away from the Pingminchong geohazard site. The Zaochong community covers 18.31 ha, with a gross floor space of 413,746 m2.

62. Preconstruction excavation and land leveling will be the major source of soil erosion. The soils from excavation and land leveling will be fully used at both sites, and no borrowing of additional refill soils will be needed. The following mitigation measures will be adopted at the construction sites to prevent undue soil erosion: (i) excavation, land leveling, and other construction activities will be scheduled during the dry season; (ii) a sedimentation pond will be built to receive water from the construction site, and the retained soils will be reused as refilling material; (iii) upon completion of construction, exposed surfaces will be vegetated. A soil erosion prevention plan was prepared for each site in accordance with the PRC Law on Soil Erosion Prevention and Control (1991) and received approval from the Wuzhou Water Resources Bureau.

63. On the right of the hilltop in Pingminchong is a row of 4- to 6-story, densely located houses. These houses may be affected by vibrations from downhill house demolition and land redevelopment. Professional structural and geological engineers conducted a risk assessment and concluded that the risk of damage to the buildings is negligible. As a precaution, the hill shoe will be reinforced prior to construction. The buildings on the hilltop will be monitored during house demolition and earth refill and compacting. Any abnormality will be evaluated and corrective actions taken if necessary.

64. As part of the land rehabilitation at Pingminchong, the slope of mudslide hills along the east side will be cut, stabilized, and reconstructed. Mitigation measures include (i) reducing the slope from 30 degrees to less than 15 degrees, (ii) building retaining walls at the hill shoes, (iii) building rainwater diversion channels on top of the hills, (iv) building slope stabilization pillars and matrixes, and (v) replanting the hills. These measures will effectively minimize the geohazard risk.

b. Hongling Road Network

65. The Hongling subproject is located in a low-lying area where the roadbed will have to be elevated by an average of about 4–5 m from the current elevation. Construction of the road network will require borrowing 3.80 million m3 of earthworks. The filling materials will be generated by leveling the nearby small unused hills currently being used as borrow sites and a source of soil erosion and dust generation. Hill leveling has been a common practice for development in Wuzhou.

66. The excavation, transport, and piling of filling materials (i.e., earth and gravel) may cause soil erosion and the siltation of district drainage systems. Mitigation measures to be taken to prevent and control soil erosion include (i) stopping earthworks during rainstorms, and (ii) establishing landscaping and vegetation cover immediately after construction is complete.

2. Operation Phase

67. During operation of the subprojects, the only possible source of soil erosion would be the result of neglected maintenance of the soil erosion control structures in erosion-prone areas or the failure to maintain landscaping in the resettlement and revegetated areas along the alignments of the road networks and the bridge. To minimize this risk, regular inspections will be undertaken to ensure that the drainage structures and revegetated areas are maintained in accordance with the requirements of the soil erosion prevention plan. Maintenance of road slopes, cuts, and embankments—such as watering, fertilizing, pest control, and replanting, if necessary—will be carried out regularly during road and bridge operation. Maintenance of such areas will be budgeted as part of the regular transport infrastructure maintenance programs. The local water resource bureau and environmental monitoring station will undertake regular monitoring of erosion prevention and control measures during the operation phase.

D. Water Quality and Drainage

1. Construction Phase

a. Geohazard Resettlement and Prevention

68. The sources of wastewater during construction at Pingminchong and Zaochong include construction camps, vehicle maintenance, and handling and application of construction materials.

69. At Pingminchong, an average of approximately 200 construction workers will be required during construction from July 2011 to June 2012. The volume of wastewater from the Pingminchong construction camp is estimated at 30 cubic meters per day (m3/d) from personal bathing, personal washing, kitchens, and toilets. At Zaochong, an average of approximately 180 construction workers will be required during construction from March 2009 to December 2010. The volume of wastewater from the Zaochong construction camp is estimated at 27 m3/d from personal bathing, personal washing, kitchens, and toilets. Since both sites are within the built-up urban areas, the domestic wastewater will be discharged into the municipal sewerage system that leads to the 50,000 m3/d municipal WWTP, which will begin operations in April 2008.

70. Construction vehicles will be maintained in the construction companies’ fleet maintenance workshops, which are fitted with oil and grease collection facilities. The

25 wastewater from the workshops will be discharged into the municipal sewerage system that leads to the municipal WWTP, which will soon begin operations.

71. Training will be provided to the construction contractors and construction workers on the safe and proper handling of construction materials that may cause water pollution. Such materials may include paints and organosilicon waterproofing agents. All of these materials will be handled and used indoors, and spills will be immediately cleaned and treated. The containers of such materials will be collected and sent to the toxic waste disposal depository, which is expected to begin operations when project construction starts.13

b. Hongling Road Network

72. Bridge and culvert construction has potential impact on water quality through increased sedimentation. Cast-in-place concrete piles will be used to construct the bridge. During boring, cofferdams will be installed to contain silt arising from boring operations. The boring spoils will be sent to the municipal landfill for disposal. The exposed surfaces will be revegetated. Surface drainage at major bridge construction sites will be intercepted and directed into temporary settling ponds. A geotextile filter will be provided at pond outlets to intercept suspended sand and silt should overflows occur. Water quality at the bridge site and downstream will be monitored by the local environmental monitoring station. Additional monitoring will be undertaken when necessary (e.g., if complaints are made by local residents).

2. Operation Phase

a. Geohazard Resettlement and Prevention

73. Pingminchong will be developed into a mixed commercial–residential area, and Zaochong as a purely residential community. These two communities will be served by the municipal sewerage networks in the respective districts, the sewage will eventually be discharged into the first municipal WWTP that begins operation in April 2008. No additional mitigation measures will be necessary.

b. Hongling Road Network

74. The operation of the road network does not create direct impacts on water quality. Indirectly, accidental explosions and chemical spills on the road network may contaminate the waterways. PRC regulations restrict the transport of hazardous goods by motor vehicles on inner city roads. Since the road network will be for inner city use, the transport of hazardous and toxic materials is prohibited and tightly controlled. An environmental emergency response system has been set up in Wuzhou, and any regular chemical spills that may contaminate water quality will be dealt with by the environmental emergency unit. In view of the fact that Hongling is a low-lying area, roads will need to be elevated by an average of 4–5 m. This may aggravate local flooding by interfering with local drainage. This concern will addressed by building adequate bridges and covered tunnels at existing drainage channels to allow water to flow. The feasibility study gave this factor due consideration and it will be carefully considered during project design. Built on ragged terraces, Wuzhou has a good track record in mitigating such impacts.

13 Communication with WEPB pollution control section.

E. Air Quality

1. Construction Phase

75. At Pingminchong, the demolition of existing houses is a source of airborne dust. The demolition contractors will be required to suppress airborne dust by (i) avoiding windy days, and (ii) spraying water during the demolition process.

76. Anticipated sources of air pollution from construction activities in all subproject sites include (i) dust generated from earth excavation, loading, hauling, and unloading; (ii) dust generated by the movement of vehicles and heavy machinery on unpaved access and haul roads; (iii) dust from aggregate preparation, concrete-mixing, and haulage activities; (iv) odor from asphalt melting, mixing, and spreading; and (v) exhaust from vehicles and equipment. To limit dust generation during construction, water trucks will be used to wet the construction roads, according to a daily schedule and taking into consideration weather conditions. When construction takes places during dry and windy days, water will be sprayed on earth piles and exposed surfaces to suppress dust. Aggregate preparation and storage areas and concrete- mixing plants will be located more than 300 m from the nearest residential area, downwind by the prevailing wind, while asphalt plants will be located more than 500 m downwind. Dust suppression equipment will be installed in concrete-batching plants. Proper maintenance of vehicles and diesel equipment, and avoidance of unnecessary running of vehicle and equipment engines will reduce emissions. No vehicle that emits black smoke will be allowed to operate on- site. Ambient air quality will be measured quarterly during construction at the sensitive sites where baseline monitoring was carried out during the EIA. Additional monitoring will be undertaken when necessary (e.g., if complaints are made by local communities). WEPB will undertake the monitoring. Fines will be imposed and the costs of remedial action charged to the contractor if it defaults on its duty to implement the air pollution measures contained in the EMP.

2. Operation Phase

77. The principal air quality impacts during operation will come from emissions of vehicles on the road network. According to the PRC regulations on vehicular emissions, all vehicles must now pass the Euro-III equivalent14 test as part of the annual vehicle safety and environmental protection inspection. Random spot checks are conducted in Wuzhou, and noncompliance will result in a fine and a deadline for repairs to meet the emissions standard.

78. The area serviced by the road network is classified as mixed commercial, commercial– residential, logistics, and recreational, to which class II of the Ambient Air Quality Standards (GB3095-1996) apply. The specific limits for air pollutants are presented in Table 6.

14 Limits and Measurement Methods for Emissions from Light-Duty Vehicles (III, IV) (GB18352.3-2005), effective 1 July 2007. For type I gasoline-fuelled cars (6 seats or fewer, gross weight less than 2,500 kg), the emission limit is 2.30 grams (g)/km for CO, 0.20 g/km for HC, and 0.15 g/km for NOx.

Table 6: Applicable Ambient Air Quality Standards (GB3095-1996)

Air Pollutant NO2 CO PM10 3 3 3 (mg/m ) (mg/m ) (mg/m ) Daily Average 0.12 4 0.15 Class II Standards Hourly Average 0.24 10 / 3 CO = carbon monoxide, mg/m = milligrams per cubic meter, NO2 = nitrogen dioxide, PM10 = particular matter smaller than 10 micrometers. Source: National Bureau of Statistics. 2006. PRC Statistical Year Book. Beijing and National Bureau of Statistics. 2006. Guangxi Statistical Year Book. Beijing.

79. Air quality baseline monitoring was carried out in two populated locations within the Hongling area. The monitoring results are shown in Table 7. The present air quality meets the applicable standards (Table 6).

Table 7: Baseline Air Quality at Selected Communities in the Hongling Area a

NO2 CO PM10 Date 3 3 3 (mg/m ) (mg/m ) (mg/m ) Wuzhou College of Finance and Economics 25 June 2008 0.051 2.5 0.08 26 June 2008 0.046 2.1 0.07 27 June 2008 0.044 1.9 0.09 28 June 2008 0.048 2.2 0.10 29 June 2008 0.054 2.3 0.06 Longxin Village 25 June 2008 0.027 1.7 0.05 26 June 2008 0.026 1.8 0.04 27 June 2008 0.023 1.9 0.06 28 June 2008 0.022 1.6 0.05 29 June 2008 0.028 1.8 0.04 3 CO = carbon monoxide, mg/m = milligrams per cubic meter, NO2 = nitrogen dioxide, PM10 = particular matter smaller than 10 micrometers. a Hourly samples were taken. Figures in the table are daily averages. Sources: Domestic environmental impact assessments prepared by the Institute of Environmental Sciences, Guangxi Academy of Transportation.

80. The concentrations of pollutants were predicted up to 2028 for distances of 10 m, 20 m, 30 m, 40 m, 50 m, 60 m, 80 m, and 100 m from the road center using the Gausian dispersion model. Under no-wind (worst-case scenario) and regular wind conditions, the total suspended particulates, carbon monoxide, and NO2 concentrations will meet the applicable standards. The detailed results for 10 m from the road center are shown in Table 8. The major pollutants from 10 m along the road network will meet the class II air quality standards for 2028.

F. Noise

1. Construction Phase

81. The demolition of buildings and rehabilitation activities at Pingminchong create a temporary but significant increase in noise. Primary sources of noise will be heavy machinery such as excavators, bulldozers, graders, stabilizers, concrete-mixing plants, drills, stone- crushing and screening plants, and rollers. The increase in noise may represent an annoyance for residents of a row of residential buildings on the west side of the Pingminchong site. At

Zaochong, residential and office compounds are located to the southeast and southwest of the housing development site.

Table 8: Predicted Air Quality along the Hongling Road Network

Item CO NO2 Expressway in Front of Rail Station (width = 60 m) Predicted concentration (mg/m3, hourly maximum) 2.03 0.056 Class II standard (mg/m3, hourly) 10 0.12 Meeting standard Yes Yes Artery Roads (width = 46 m) Predicted concentration (mg/m3, hourly maximum) 2.25 0.062 Class II standard (mg/m3, hourly) 10 0.12 Meeting standard Yes Yes Main Roads (width = 46 m) Predicted concentration (mg/m3, hourly maximum) 1.46 0.040 Class II standard (mg/m3, hourly) 10 0.12 Meeting standard Yes Yes Main Roads (width = 36 m) Predicted concentration (mg/m3, hourly maximum) 1.54 0.042 Class II standard (mg/m3, hourly) 10 0.12 Meeting standard Yes Yes Branch Roads (width = 30 m) Predicted concentration (mg/m3, hourly maximum) 1.02 0.028 Class II standard (mg/m3, hourly) 10 0.12 Meeting standard Yes Yes 3 CO = carbon monoxide, NO2 = nitrogen dioxide, m = meter, mg/m = milligrams per cubic meter. Sources: Domestic environmental impact assessments prepared by the Institute of Environmental Sciences, Guangxi Academy of Transportation.

82. Minimizing noise and the resulting adverse effects will be achieved with properly maintaining equipment and restricting construction times. Other measures will include siting rock crushing, concrete, and asphalt hot-mixing plants and storage yards at least 2 km from residential buildings. Sound suppression methods will be applied for both development sites as they are within 100 m of residential areas. The movement of heavy vehicles along urban and village roads will be restricted outside of this period. In the event that nighttime transportation is necessary, vehicle speeds will be restricted to less than 30 km per hour, and no sounding of horns will be allowed. To reduce noise to permissible levels during school hours, heavy machinery will be required to install sound suppression equipment. Construction activities will be scheduled for off-school hours, weekends, and vacation periods.

83. WEPB will monitor noise at the sensitive sites during construction. Additional monitoring will be undertaken when necessary, e.g., if complaints are made by local communities. If noise standards for equipment and machinery are exceeded, the equipment, machinery, and construction conditions will be checked under the supervision of the on-site environment engineer and measures immediately taken to solve the problem. Fines and payment of costs by the contractor for mitigation done by others will be the final option.

2. Operation Period

84. Since the two residential communities are away from the artery roads, and no heavy traffic is expected. Noise prevention and control will be incorporated into the design of the mixed

29 residential and commercial district in accordance with the PRC noise pollution standards. The operation of the road network is not to create undue noise impact, as urban development will be undertaken after the road networks are in place such that noise prevention and control will be incorporated into the design of the residential and commercial areas.

85. According to the Technical Guidelines on Noise Zoning of Urban Areas (GB/T15190-94), class IV of the Urban Ambient Noise Standards (GB3096-1993) applies for the zone of 30 ±5 m from the road center, and class II for other areas. The applicable limits are presented in Table 9.

Table 9: Applicable Noise Standards for the Hongling Road Network Class Daytime Nighttime Urban Zone II 60 dB(A) 50 dB(A) Mixed residential, commercial, and industrial zone IV 70 dB(A) 55 dB(A) Along main artery roads dB(A) = A-weighted decibel. Source: Ministry of Environmental Protection, Beijing, PRC.

86. On the basis of the applicable standards, the safe distances for different sections of the Hongling road network are predicted (Table 10). Safe distance refers to the necessary distance from the road center whereby noise reaches the prescribed allowable limit, under the condition of completely open space. These safe distances will be used to guide future urban development planning. When specific developments are proposed, the safe distances can be used to guide the EIA studies of these developments. In particular, the safe distances can be used to guide site selection for sensitive institutions (e.g., schools and hospitals) or sensitive buildings in these institutions (e.g., operating room of a hospital) to preventing these institutions and buildings from violating the noise standards. In cases where maintenance of the necessary distances is not possible, mitigation measures, such as sound barriers, soundproof windows, sound buffer trees and traffic control, can be adopted.

G. Solid Waste

1. Construction Phase

a. Geohazard Resettlement and Prevention

87. At Pingminchong, solid waste comes from a variety of sources. Building demolition will be contracted out to professional demolition companies that will collect the reusable and recyclable materials, such as bricks, wooden doors, windows, and steel bars, from the buildings to be demolished. The remaining construction waste will be transported to the municipal landfill. For sanitary reasons, the entire Pingminchong area will be thoroughly cleared of all toxic substances and disinfected to avoid groundwater pollution. The construction workforce is estimated to produce 100 kilograms per day of garbage during the construction period.

88. At Zaochong, the construction workforce will produce 75 kilograms per day of living garbage. The construction of the residential buildings, installation of equipment, and house appliances will generate construction waste such as reject and waste construction materials, wooden frames, cardboards, foam cushions, and plastic bags. The contractors will collect wooden frames, cardboards, foam cushions, and plastic bags and sell them to recycling stations. The solid waste that cannot be recycled, mostly living garbage from construction camps, will be

30 collected by the urban sanitation bureau and transported to the municipal sanitary landfill built in 2006 with a total capacity of 1.77 million tons and daily processing capacity of 600 tons.15

Table 10: Noise-Safe Distances for Different Sections of the Hongling Road Network Distance from Distance from Time of Standard Road Center Standard Road Center Section Year Day Class dB(A) (m) Class dB(A) (m) Day 70 2 60 25 Expressway in 2014 Night 55 11 50 37 Front of Rail Day 70 5 60 78 Station 2020 IV II Night 55 34 50 98 (width = 60 m) Day 70 7 60 102 2028 Night 55 110 50 203

Day 70 2 60 28 2014 Night 55 14 50 39 Artery Roads Day 70 6 60 83 (width = 46 m) 2020 IV II Night 55 36 50 103

Day 70 8 60 108 2028 Night 55 116 50 212

Day 70 ＜1 60 6 2014 Night 55 7 50 23 Main Roads Day 70 2 60 26 2020 IV II (width = 46 m) Night 55 13 50 37 Day 70 5 60 66 2028 Night 55 42 50 110 Day 70 ＜1 60 7 2014 Main Roads Night 55 8 50 25 Day 70 2 60 28 (width = 36 m) 2020 IV II Night 55 14 50 39 Day 70 5 60 70 2028 Night 55 45 50 116 Day 70 ＜1 60 4 2014 Night 55 5 50 16 Branch Roads Day 70 1 60 15 2020 IV II (width = 30 m) Night 55 8 50 26 Day 70 3 60 45 2028 Night 55 27 50 81 dB(A) = A-weighted decibel, m = meter. Sources: Domestic environmental impact assessments prepared by the Institute of Environmental Sciences, Guangxi Academy of Transportation.

b. Hongling Road Network

89. For the road network, solid waste comes primarily from the construction workforce. The daily volume is estimated at 100 kg of living garbage per day during construction. Containers will be provided for each construction site, and the local sanitation bureaus will transport the waste to the municipal sanitary landfill for disposal.

15 This is a German build–operate–transfer project with Clean Development Mechanism financing. The modern landfill sorts solid waste into 10 types of recycles, and 80%–90% of the waste received by the landfill will be recycled. Organic waste is composted into organic fertilizers.

2. Operation Phase

90. Wuzhou Sanitation Bureau will collect the solid waste from the Pingminchong communities and the cleaning of the Hongling road network, and dispose of it in the municipal sanitary landfill. Signs will be posted along the Hongling road network to prohibit the throwing of garbage. Road cleaning will be undertaken on a regular basis. No undue impact is anticipated.

H. Flora

1. Construction Phase

91. Vegetation within the construction area will be cut and cleared for the entire construction areas at Pingminchong and Zaochong, and along the Hongling road network corridors. No known species of flora in the area are under protection. The mitigation measures will be to immediately plant grasses and trees. This is a regulatory requirement that is well-enforced in Wuzhou; no significant impacts are anticipated.

2. Operation Phase

92. The operation of the project facilities is not expected to generate any impact, unless the vegetation is not maintained. The key mitigation measure is to maintain all vegetation covers, and inspect all slope stabilization sites. If signs of failure are discovered, a repair program will be immediately initiated.

I. Land Acquisition and Resettlement

93. People affected physically and economically by the Project include those (i) affected by the acquisition of land, (ii) affected by the temporary use of land, and (iii) whose livelihoods are affected during construction.

94. Currently in Pingminchong, 6,015 people are living in 1,919 households. About 19.27 ha and 150,261 m2 of houses and buildings will be involved. Although the resettlement of these people is not involuntary, the WMG will use the criteria of land acquisition and compensation used for involuntary resettlement; they will be compensated so that they will not be economically worse off than before the resettlement.

95. The Hongling road network subproject will require (i) permanent acquisition of 100.2 ha, and (ii) resettlement of 353 families. The Project will not adversely affect any indigenous people or ethnic minorities. The relocated families will be given two options: (i) cash compensation, and (ii) replacement housing. The replacement housing will be provided in the resettlement community built for those relocated from the Luoyang–Zhanjiang Railway currently under construction.

96. The total cost for land acquisition and resettlement is estimated to be CNY247.8 million at 2008 prices. Resettlement impacts were identified and resettlement plans prepared in accordance with the PRC Land Administration Law, 2003, and ADB’s Involuntary Resettlement Policy (1995). The resettlement plans provide a socioeconomic profile of affected persons and scope of impacts, and address issues related to compensation entitlement, the legal framework, public consultations, grievance procedures, environmental protection, rehabilitation measures, and budget and implementation milestones. Resettlement requirements were carefully considered and incorporated into the project design.

97. The WMG and Dongtai (para. 14) will implement ADB’s full disclosure policy for the resettlement activities, including (i) distributing the resettlement information booklet to affected people and enterprises; (ii) distributing the draft and final resettlement plans to local governments and village offices; and (iii) posting the draft and final resettlement plans on the ADB website before appraisal and upon the WMG approval. Dongtai will establish a project resettlement office to continue public information activities and respond to any questions or grievances.

98. All those affected will be compensated and resettled in a timely and adequate manner and in accordance with the resettlement plan, so that they will be at least as well off as they would have been without the Project. To ensure that affected persons have been adequately compensated and rehabilitated, the WMG and Dongtai will (i) keep ADB informed of the progress in implementing the resettlement plans through quarterly progress reports until resettlement is completed; and (ii) prepare resettlement completion reports. The Wuzhou project management office (WPMO) and Dongtai will engage an independent agency for semiannual monitoring and annual evaluation of land acquisition and resettlement until 2 years after land acquisition, resettlement implementation, and completion of resettlement.

VI. ECONOMIC ASSESSMENT

A. Environmental Protection Investments

99. The investment costs are estimated to be $205.67 million for all three subprojects during the 5-year construction period. The total incremental environmental investment is estimated at $90,000, including the costs of (i) preparing the EIA, (ii) implementing the EMP, (iii) conducting site monitoring and mitigation, (iv) training environmental personnel, and (v) providing environmental supervision and monitoring. Environmental costs are listed as part of the project costs.

B. Environmental Benefits

100. Environmental benefits or forgone environmental losses resulting from implementation of the EMP are anticipated to include (i) reduced soil erosion, (ii) reduced air pollution, (iii) reduced water pollution, (iv) reduced noise pollution, (v) reduced impact on aquatic species, (vi) reduced environmental impacts from geohazards, and (vii) associated health and social health effects of reduced environmental pollution. Economic benefits of the environmental benefits or forgone environmental costs are estimated at $106,740. The economic analysis section of the draft final report provides greater detail on the environmental benefit estimation.16

C. Economic Internal Rate of Return for Environmental Management

101. The economic internal rate of return (EIRR) is calculated for each subproject and for the whole Project. The PPTA reviewed the input data and assumptions and found them to be appropriate. The EIRR calculation takes into account only the main benefits of different components and includes all project-related costs. This approach yields the EIRR to be 18.6% for the whole Project. The EIRR would increase considerably if nonquantifiable benefits could be added.

16 ADB. 2008. Guangxi Wuzhou Urban Development Project. Consultant’s Report. Manila (TA 4960–PRC).

VII. ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

102. The objective of establishing an EMP is to propose appropriate mitigation measures, and recommend establishment of institutions or mechanisms to monitor and ensure compliance with environmental regulations and implementation of the proposed mitigation measures. Such institutions and mechanisms seek to ensure continuously improving environmental protection activities during preconstruction, construction, and operation to prevent, reduce, or mitigate adverse impacts. The EMP draws on the individual EIA reports and on the PPTA discussions and agreements with the relevant government agencies.

103. The EMP for the Project is presented in Appendix 1. The EMP will be reviewed and updated at the end of the detailed design to be consistent with the final detailed design.

B. Mitigation Measures

104. The EMP contains measures to mitigate potential environmental impacts. Responsibilities for implementing and supervising these are assigned to different agencies.

C. Organization for Environmental Management

105. The WPMO will be responsible for setting up the environmental management system, comprising inspection, monitoring, reporting, and initiating corrective actions or measures. In the design stage, the WPMO and Dongtai will pass the EMP to the design institutes to incorporate mitigation measures into the detailed designs of the subprojects. The EMP will be updated at the end of the detailed design, and be passed to selected contractors. To ensure that contractors comply with the EMP’s provisions, the WPMO and Dongtai will prepare and provide the following specification clauses for incorporation into the bidding procedures: (i) a list of environmental items to be budgeted by the bidders in their proposals; (ii) environmental clauses for contract conditions and specifications; and (iii) full EIAs and SEIA for compliance. The WPMO will nominate dedicated, trained, and qualified environment specialists or establish an environmental management unit to undertake environmental management activities and ensure effective EMP implementation. Dongtai will contract environmental management consultants (EMCs) to be responsible for inspecting, monitoring, and evaluating implementation of mitigation measures.

106. Upon completion, the Hongling road network will be transferred to WUIMB as the operating agency. The operation of the Zaochong residential community will remain in the hands of the Dongtai. The operating agencies (Dongtai and WUIMB) will assume the responsibilities for implementing the EMP during operation. They will be part of the environmental training program.

107. Environmental training will be essential for Dongtai, WUIMB, and the contractors to implement the EMP. The WPMO will be responsible for organizing training programs, which will cover (i) environmental laws, regulation, and policies; (ii) implementation of mitigation measures; (iii) handling environmental conflicts with residents and schools near the facility area; (iv) environmental technologies and procurement; (v) facility maintenance and operation; (vi) environmental monitoring and supervision; and (vii) documentation and reporting.

D. Inspection, Monitoring, and Reporting

108. The WPMO will recruit one or more EMCs to conduct internal environmental monitoring and inspections, to advise Dongtai and WUIMB, and to supervise the contractors to ensure that environmental mitigation measures are properly implemented. Inspections or audits will mainly cover construction activities, but will also review the affected environment. The inspections or audit activities will generally be conducted every week during construction. Inspections or audit activities and observations will be well documented, and the contractors and ADB will be informed of the outcomes.

109. The Wuzhou Environmental Monitoring Station (WEMS) under the WEPB will carry out compliance monitoring. WEMS will conduct regular and random environmental monitoring activities before, during, and after construction, as well as in the event of emergencies.

110. The EMCs will prepare quarterly inspection and monitoring reports and submit them to the WPMO and WEPB during construction. The results of these environmental inspection and monitoring activities will be used to assess (i) extent and severity of the environmental impacts against the predicted impacts, (ii) performance or effectiveness of the environmental protection measures or compliance with pertinent rules and regulations, (iii) trends in impacts, (iv) overall effectiveness of the project EMP, and (v) need for taking further mitigation measures.

111. To help ADB monitor the proper and timely implementation of the EMP and adherence to agreed environmental covenants, the WPMO will submit semiannual reports to ADB based on the monitoring and audits. Moreover, within 3 months after each subproject completion, or no later than 1 year with permission of WEPB, environmental acceptance monitoring and audit reports of each subproject completion will be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Regulation on Project Completion Environmental Audit (SEPA 2001); (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities; and (iii) reported to ADB. The environmental acceptance reports of the subproject completions will indicate the timing, extent, and effectiveness of completed mitigation and maintenance, and identify needs for further mitigation measures and monitoring during operation.

E. Mechanism for Feedback and Adjustment

112. Based on the inspection and monitoring reports, environmental authorities will decide whether (i) further mitigation measures are required as corrective action, or (ii) improvement is required to environmental management practices. If during the monitoring and inspection exercise, substantial deviation from the EMP is identified or any changes to any of the subprojects may cause substantial adverse environmental impacts or a significant increase in the number of affected people, the WPMO should consult with WEPB and ADB immediately and form an EIA team to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIA reports should be submitted to the environment authorities for review and approval and to ADB.

F. Environmental Management Capacity in Wuzhou

113. WEPB has 76 staff members. It consists of five sections and three institutions. The five sections cover EIA, pollution control and planning, regulatory affairs and public education, public information office, and general administration. The three institutions include the environmental monitoring station (fully government funded), inspection and enforcement brigade (fully

35 government funded), and the environmental science research institute (partially government funded). SEPA issued a class B EIA certificate for the environmental science research institute.

114. Operating for more than 20 years, WEMS has 44 employees, including 39 (88.6%) with higher education degrees (college and above). It is certified on an annual basis by the national environmental monitoring network. Regular professional training is provided by the national, provincial, and local EPBs and monitoring centers for knowledge and skills upgrading. The station is fully equipped for compliance monitoring (existing pollution sources and completion inspection and monitoring of new projects) and ambient air and water quality monitoring. In addition to conventional equipment, its laboratory has such advanced monitoring equipment as a fluorometer, spectrometer, gas chromatographer, and atomic absorption spectrometer. The station provides more than 30,000 monitoring data items each year.

115. Automated online 24-hour monitoring is carried out for a dozen major polluting enterprises, and is planned for 53 more. Monitoring data is compiled on a quarterly basis. Compliance monitoring of regular pollution sources is conducted twice a year. In addition, major polluting enterprises are inspected 5–6 times per year with unannounced monitoring visits, and regular polluting enterprises 1–2 times per year.

116. Ambient environmental monitoring is done regularly at seven air monitoring points (Appendix 2 provides the location map). Three of the seven air monitoring points at Wangpu (reference point), Yungai Primary School (representing residential areas), and the WEPB building (representing mixed industrial–residential areas), where automated continuous monitoring of SO2, NO2, and PM10 is undertaken, were sanctioned in 1993 by the then National Environmental Protection Agency as part of the national air quality monitoring network. According to SEPA and Guangxi EPB requirements, air quality, in the form of the air pollution index, is reported daily to the Guangxi EPB and published on a daily basis to the general public via the internet and local television.

117. The Guijiang, Xunjiang, and Xijiang rivers have seven surface water quality monitoring points that were approved and certified in 1993 by the then National Environmental Protection Agency (Appendix 3 provides the location map). Three are located upstream of the urbanized area as reference monitoring points for the Guijiang and Xunjiang (north branch and south branch). One is located on the Xijiang at the border with Guangdong Province as an exit reference. Water samples are taken at 0.5 m below the water surface at the center and left and right sides of the section. The monitoring is conducted six times in total for the low-, medium- and high-flow seasons.

118. The 118 noise monitoring points are located by dividing the urban area on a 500 m x 500 m basis, covering different urban zones and main roads.

119. WEMS has adequate capacity to conduct compliance and ambient monitoring. It will be able to provide adequate environmental monitoring support required by this Project.

VIII. PUBLIC CONSULTATION AND DISCLOSURE

A. Information Disclosure and Public Consultations

120. Several rounds of public consultations with various groups of stakeholders were conducted during the course of EIA and SEIA preparation. The consultations included (i) informal visits to communities and households in the subproject areas, (ii) questionnaire

36 surveys, and (iii) a wider stakeholder meeting attended by representatives of the affected public and other concerned stakeholders. Those affected by land acquisition and resettlement were consulted throughout the process of resettlement planning and social and poverty impact studies, using a variety of public consultation techniques including questionnaire surveys, community meetings, focus group discussions, key informant interviews, and household visits that were carried out by local design institutes, the PPTA consultants, and ADB missions. Details of the consultations and the results are in the draft final report (footnote 16).

121. During the preparation of domestic EIA reports, 100 questionnaires were distributed to people living in each subproject area. The EIA institutes conducted informal interviews with local residents, totaling more than 50. The PPTA consultants conducted consultations with relevant government agencies, particularly those with responsibilities for macroeconomic planning; environmental protection; soil erosion control; geohazard management; land resource management; and urban construction and planning; including Wuzhou Construction and Planning Commission, Wuzhou Development and Reform Commission, WEPB, Wuzhou Land Resource Bureau, and Wuzhou Water Resources Bureau.17 Information on the Project, the anticipated environmental impacts, and proposed mitigation measures was disseminated through a variety of formats, including overhead presentations, prefaces in the questionnaires, and the internet. A wider stakeholder meeting was held in early April, drawing over 100 participants from key municipal government agencies, district government agencies, and local communities. The purpose of this wider stakeholder consultation was to present the preliminary findings of the environmental impact assessment process to the general public, and solicit their comments and suggestions for reviewing the potential impacts and mitigation measures, and refining the EMP.

122. The consultations revealed that 97%–100% of the consulted public are supportive of the subprojects, with the rest being unsure. The expected benefits include promotion of sustained urban development, protection of people from the threat of geohazards, better access to urban transportation infrastructure, better prospects for outside investment, and better prospects for socioeconomic development. The anticipated negative impacts include possible noise pollution, air pollution from vehicles, and land acquisition and resettlement. The consulted public made several suggestions for mitigating the potential adverse environmental and social impacts: (i) construction activities close to residential areas should stop between 10:00 p.m. and 7:00 a.m., (ii) heavy construction equipment located in close proximity to schools and residential areas should be fitted with noise suppression apparatus, (iii) dust-generating construction vehicles should be covered and dusty construction areas sprayed with water, (iv) green sound barriers should be planted along the artery roads, (v) the need for installing sound barriers along the approaches on the north end of the bridge should be examined, and (vi) affected people should be properly compensated in accordance with PRC land compensation policies. These suggestions are incorporated in the EIA reports and SEIA.

B. Future Information Disclosure and Public Consultation Program

123. Information disclosure and public consultations to safeguard the environment and local communities from undue impacts will continue throughout construction and into the operation phase. During construction, the consultations will be undertaken regularly in the forms of formal

17 In addition to the public consultations carried out during preparation of the domestic EIAs, the PPTA consultants conducted two rounds of consultations. The first with 80 government and community representatives in February 2008 was to provide information and identify issues of critical concern. The second round of consultations with 90 government and community representatives in April 2008 was to present the preliminary findings of the SEIA and review the mitigation measures, environmental monitoring program, and other key aspects of the EMP.

37 questionnaire surveys and informal interviews by the on-site environmental engineers of the construction contractors, the EMCs, and independent environmental monitor of the local residents living in the project areas, especially those around the construction sites. The consultations will focus on public complaints about community annoyances from construction activities, such as construction noise and dust, as well as public concerns about the environment and resettlement. Immediate adjustments will be undertaken to address any public complaints and concerns.

124. During the first 3 years of operations, the EMC will continue with the regular public consultation program. Thereafter, public complaints and concerns will be channelled through the WEPB hotline.

IX. CONCLUSIONS

A. Project Benefits

125. Because of its history and geographic location, Wuzhou City developed in the northern foothills of the Xijiang River. While the Xijiang waterway and the hills provided many comparative advantages to the city such as abundant water and forest resources (including water-based transportation), the confines of the river and the hills became a major limiting factor to urban development, as the population and socioeconomic activities have continued to expand. Frequent geohazards, particularly mudslides, have become a major threat to the property and lives of Wuzhou residents. The need to explore new approaches to geohazard mitigation and management and to promote sustainable urban growth is urgent.

126. In this context, the Guangxi Wuzhou Urban Development Project will complement WMG efforts to promote sustained urban development by directing future urban development to geohazard-free areas, and piloting a new model for geohazard management. If the Project is successful, the WMG will consider setting up a revolving fund to mitigate geohazards across the city. The model will also be of value for replication elsewhere in the PRC and Asia.

127. The geohazard forecasting and early warning system will complement WMG efforts to prevent and control geohazards and the objective of reducing the risk of life and property losses. In addition to the establishment of the GIS-based system, the Geohazard Management Center within the Wuzhou Land Resources Bureau (footnote 16) will implement a capacity building program, including increased staff and training.

128. Other environmental and social benefits include reduced soil erosion and dust from exposed slopes; reduced clogging of drainage and siltation of waterways from earth, mud, and eroded soil; better environmental amenities for geohazard-threatened communities after resettlement; and elevated Hongling road network as flood escape routes.

B. Environmental Safeguard Assurances

129. An EMP with a detailed environmental monitoring program and institutional strengthening and training program was developed. The EMP proposes appropriate mitigation measures through the duration of the project cycle; and establishes mechanisms to monitor and ensure compliance with environmental regulations and implementation of the proposed mitigation measures. It seeks to ensure continuously improving environmental protection activities. This mechanism is carefully designed to fit into the PRC’s existing management system for environmental management.

130. The main project risk relates to the low institutional capacity of Dongtai, including its lack of experience working with international lending institutions, limited awareness of ADB requirements, and lack of environmental management staff. The following measures are proposed to mitigate these risks: (i) specific assurances from the WMG to implement the mitigation measures in the EMPs; (ii) capacity building for Dongtai and WUIMB, including staffing and training; (iii) appointment of project implementation and monitoring consultants, including EMCs and independent environmental monitor; (iv) clear definition of roles and responsibilities for EMP implementation, performance monitoring, and mechanisms for feedback and adjustment; (v) role of WEPB in environmental inspection and supervision; and (v) project reviews and monitoring by ADB.

131. Assurances and covenants related to the environmental aspects of the Project are required as follows:

(i) The WMG will ensure Dongtai and WUIMB to build, operate, maintain, and monitor the project facilities in strict conformity with (i) all applicable laws and regulations, including national and local regulations and standards for environmental protection, health, labor, and occupational safety; and (ii) ADB’s Environment Policy and the environmental mitigation and monitoring measures detailed in the approved EIAs and EMPs. (ii) The WPMO will ensure that the capacity-building program described in the EMP will be provided to Dongtai, WUIMB, and the contractors properly and on time. (iii) The WMG will ensure that Dongtai will provide quarterly environmental monitoring reports to the WPMO, which will prepare and submit to ADB semiannual environmental reports in a format acceptable to ADB until loan closure.

C. Overall Conclusion

132. The Project will generate great socioeconomic benefits by piloting an innovative approach to geohazard management and by promoting sustainable urban development.

133. The overall findings of the domestic EIAs and the SEIA are that negative impacts on air, water, and acoustic environment are expected, especially during construction. In general these impacts will be temporary and localized. The proposed mitigation measures are prescribed conceptually in the SEIA. These measures will be updated into a detailed EMP during the design stage and continuously refined during construction. The EMPs will be implemented by Dongtai, WUIMB, and contractors; monitored and supervised by professional environmental management agencies and WEMS; and regularly reported to the WPMO, WEPB, and ADB.

134. Any adverse environmental impacts associated with the Project will be prevented, eliminated, or minimized to an acceptable level if the EMP proposed under the EIAs and SEIA is effectively implemented, particularly through the mechanism for the continuous refinement and effective implementation of the environmental mitigation measures.

Appendix 1 39

ENVIRONMENTAL MANAGEMENT PLAN

A. Objectives

1. The objective of establishing an environmental management plan (EMP) is to propose appropriate mitigation measures, and recommend establishment of institutions or mechanisms to monitor and ensure compliance with environmental regulations and implementation of the proposed mitigation measures. Such institutions and mechanisms seek to ensure continuously improving environmental protection activities during project preparation, construction, and operation to prevent, reduce, or eliminate adverse impacts.

2. The EMP includes (i) objectives, (ii) summary of impacts and mitigation measures, (iii) environmental monitoring and inspection, (iv) public consultations, (v) responsibilities and authorities for implementation, (vi) environmental management capability in Wuzhou, (vii) institutional strengthening and training, (viii) reporting and supervision, (ix) work plan, (x) cost estimates, and (xii) a mechanism for feedback and adjustment. The EMP will be reviewed and updated to be consistent with the final detailed design.

B. Potential Impacts and Mitigation Measures

3. Potential environmental issues and impacts during the preconstruction, construction, and operation phases, as identified by the individual environmental impact assessments (EIAs), as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table A1.1. The mitigation measures will be incorporated into the tendering documents (where appropriate), construction contracts, and operation management plans; and will be undertaken by contractors, the Wuzhou Dongtai State Assets Investment and ManagementOperation Corporation Ltd. (Dongtai), the Implementing Agency for the Project, and the operating agencies (Dongtai and Wuzhou Urban Infrastructure Management Bureau (WUIMB) under the supervision of the Wuzhou project management office (WPMO) and Wuzhou Environmental Protection Bureau (WEPB). The effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether they should be continued or improvements should be made. Improvements need to be confirmed through stipulated environmental management procedures.

4. Resettlement plans were prepared to ensure that those affected will be better off or at least not worse off because of the Project. Details of the required actions are given in the individual resettlement plans for the individual subprojects.

Table A1.1: Summary of Potential Impacts and Mitigation Measures Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency A. Preconstruction 1. EIA and Site and Select recommended sites and Design WPMO, feasibility study aalignment routes for individual subprojects institute, EIA WEPB stage selections from various alternatives to institutes, minimize adverse impacts on the Dongtai environment and land resources. Engineering Evaluate engineering and Design WPMO, and technological alternatives based institute, EIA WEPB

40 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency technological on predefined environmental and institutes, alternatives economic criteria. Dongtai Examine and adopt use of elevated Hongling road network as flood escape route. Treat improvement to environmental amenities as a priority consideration for the Pingminchong geohazard resettlement and prevention subproject. Sector Design the Project and suggest strategy new urban development strategy that feeds into the update of the Wuzhou Urban Development Master Plan (2000–2020) with the goal of safe and sustainable urban development, with full access to environmental amenities. Public Conduct two rounds of wide public EIA institutes, WPMO, consultations consultations on environmental PPTA WEPB issues, poverty, and resettlement consultants, during feasibility studies, and EIA Dongtai and SEIA preparation 2. Design stage Updating Review and update mitigation Design WPMO, EMP measures defined in each EMP institute, WEPB and incorporate into the detailed Dongtai design to minimize adverse environmental impacts. 3. Bidding and Bidding Include environmental provisions Dongtai, WPMO, construction documents in the request for proposals. EMCs WEPB preparation and contracted by Include environmental section in contractors’ Dongtai the terms of reference for bidders qualifications Include environmental clauses for contractors in reference to the EMP and monitoring plan in the construction and supply contracts. Environmental Require contractors to prepare an Contractors Dongtai, operation and environmental operation and WPMO, supervision supervision manual, for approval WEPB manual by Dongtai.

Complaint Establish a complaint and Contractors, WPMO, and information office or appoint a Dongtai WEPB information responsible person before starting office or construction appointed Ensure that office staff is well- person trained to handle conflicts with

Appendix 1 41

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency residents about environmental impacts Environmental Invite environmental specialists WPMO WPLG protection and/or officials from WEPB to training provide training on implementation and supervision of environmental mitigation measures to relevant people, especially construction engineers and managers. Taking of land Establish a resettlement office Dongtai WPMO and property comprising local government officials to manage the resettlement process. Conduct information dissemination and community consultation programs in accordance with the PRC Land Administration Law and ADB Involuntary Resettlement Policy (1995). Ensure that all resettlement activities are reasonably completed before construction starts on any subproject. Engagement Prior to start of construction, WPMO WPLG of EMC engage an EMC. Engagement Prior to start of construction, WPMO WPLG, of IEM engage an IEM (as part of the ADB loan implementation consultancy) using quality- and cost-based selection.

B. Construction Phase 1. Soil erosion Excavation Avoid excavation activities during Contractors Dongtai, rainy days. OEE, IEM, WPMO, Strip and stockpile topsoil; build WWRB retaining walls where necessary before dumping. Provide temporary detention ponds or containment to control silt runoff. Construct intercepting ditches and chutes to prevent outside runoff entering disposal sites, and divert runoff from sites to existing drainage or ponds. Transport and Use all soil as refill and Contractors Dongtai, disposal of landscaping materials on-site. OEE, IEM,

42 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency soils Build settling ponds in WPMO, Pingminchong and Zaochong WWRB construction sites. Clear soils in settling ponds for use as refill material. Construction Lay straw or cloth at the entry and Contractors Dongtai, vehicles exit of each construction site. OEE, IEM, WPMO, Clean tires of construction WWRB vehicles regularly to remove soil. Exposed As soon as refill and land leveling Contractors Dongtai, surfaces is done, revegetate with trees and OEE, IEM, grasses. WPMO, WWRB

Safety at Ensure safety of buildings on Contractors Dongtai, Pingminchong hilltops during housing demolition, OEE, IEM, rehabilitation, and slope WPMO stabilization. Stabilize slopes of hill shoes by reinforcing retaining walls, matrixes, pillars, and drainage networks. 2. Water quality Siltation in If mitigation measures in section Contractors Dongtai, water bodies B.1a are effectively implemented, OEE, IEM, siltation in water bodies will be WPMO, minimal. WWRB

Wastewater Divert wastewater from Contractors Dongtai, from construction camps (all located in OEE, IEM, construction urban areas) to municipal sewers. WPMO, camps WPEB Prohibit unauthorized dumping of wastewater. Handling of Prepare and apply a construction Contractors Dongtai, chemicals materials handling protocol (e.g., OEE, IEM, storage away from watercourses WPMO, and provision of retention areas to WEPB contain accidental spills of toxic, hazardous, and harmful construction materials, such as caustic and acidic substances, oil and petroleum products, and asphalt materials) to prevent soil, surface, and groundwater pollution. Train workers (especially painters) on safe and diligent handling of chemicals to avoid accidental spills, and on emergency

Appendix 1 43

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency response when a spill occurs. Develop and implement a prevention and emergency response plan. Solid waste Prohibit dumping of construction Contractors Dongtai, solid waste and garbage by OEE, IEM, construction crews into water WPMO, bodies. See mitigation measures WEPB on solid waste management in section B.5e. Household Prior to demolition in Contractors Dongtai, chemicals Pingminchong, search and clear OEE, IEM, houses of household chemicals WPMO, and any other toxic substances, WEPB which will be sent to the municipal toxic waste depository for safe disposal. 3. Air quality Dust from Require vehicles delivering Contractors Dongtai, material granular and/or fine materials to OEE, IEM, delivery and the sites to be covered. WPMO, construction WEPB vehicles Dust from Ensure material storage sites are Contractors Dongtai, construction 300 m from residential areas, and OEE, IEM, sites are covered or sprayed with water. WPMO, WEPB Take extra care during dry days with strong winds. Spray water on construction sites twice a day. Upon completion of civil works, require all construction sites to be replanted with trees and grasses. Dust from Keep all roads and pavements Contractors Dongtai, construction used by vehicles of the OEE, IEM, roads contractors or suppliers clean and WPMO, clear of all dust, mud, or WEPB extraneous materials dropped by their construction vehicles. Compete this cleaning on a regular basis.

Spray water on access roads twice a day. Emissions Ensure vehicle emissions comply Contractors Dongtai, from vehicles with GB18352-2005, GB17691- OEE, IEM, and 2005, GB 11340-2005, GB3847- WPMO,

44 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency equipment 2005, and GB18285-2005. WEPB Require equipment and machinery emissions to comply with GB16297-1996. Initiate a regular inspection and certification system. 4. Noise Noise from Require that equipment and Contractors Dongtai, equipment machinery noise complies with OEE, IEM, and vehicles GB12523-1990. WPMO, WEPB Provide adequate routes for large trucks to keep away from residential areas. At construction sites within 500 m of the nearest habitation, stop noisy construction work between 10:00 p.m. and 6:00 a.m. Demolition at Stop house demolition at Contractors Dongtai, Pingminchong Pingminchong and Zaochong from OEE, IEM, 10:00 p.m. to 6:30 a.m. WPMO, WEPB Earth Stop earth compacting at Contractors Dongtai, compacting at Pingminchong and Zaochong from OEE, IEM, Pingminchong 10:00 p.m. to 6:30 a.m. WPMO, WEPB Noise Wuzhou environmental monitoring Contractors Dongtai, monitoring at station will monitor noise at the OEE, IEM, Pingminchong Pingminchong and Zaochong WPMO, and Zaochong construction sites during the peak WEPB construction period. Community Conduct weekly interviews with Contractors Dongtai, complaints residents living adjacent to OEE, IEM, about noise Pingminchong and Zaochong sites WPMO, to identify community complaints WEPB about noise, and seek suggestions from community members on how to reduce noise annoyance. Use community suggestions to adjust work hours of noise- generating machinery. 5. Solid waste Domestic Provide multicompartment Contractors Dongtai, waste from collection bins to facilitate reuse, OEE, IEM, construction recycling, and composting of solid WPMO, camps waste. WEPB Store waste away from water bodies to be regularly collected by the Municipal Sanitation Bureau and hauled to the municipal

Appendix 1 45

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency sanitary landfill. Recyclable Collect and sell recyclable solid Contractors Dongtai, solid waste at waste in Zaochong (e.g., OEE, IEM, Zaochong packaging materials for household WPMO, appliances and building facilities, WEPB including cardboard, wooden frames, foam cushions, plastic bags) to recycling stations. Construction Transport reject construction solid Contractors Dongtai, solid waste at waste in Zaochong to the OEE, IEM, Zaochong municipal landfill. WPMO, WEPB Construction Contract professional demolition Contractors Dongtai, solid waste at companies to carry out housing OEE, IEM, Pingminchong demolition. Collect reusable and WPMO, recyclable materials (such as WEPB bricks, windows and doors, steel bars) for reuse and recycle. Transport the remaining construction waste to the municipal landfill. 6. Impact on flora Vegetation Preserve existing vegetation Contractors Dongtai, where no construction activity is OEE, IEM, planned or temporarily preserve WPMO, vegetation where activity is WEPB planned for a later date. Rehabilitate disposal and borrow sites into grassland, woodland, or farmland after closing. 7. Social and Resettlement Compensate and resettle all Dongtai, WPLG, cultural affected people in a timely and municipal WPMO considerations adequate manner, in accordance resettlement with the resettlement plans. office Traffic jam or Build interim roads. Contractors, OEE, IEM, block Dongtai WPMO, Select transport routes to reduce Wuzhou disturbance to regular traffic. Traffic Divert traffic at peak traffic hours, Bureau and reinstate the area to its original condition on completion of construction. Cultural Preserve identified cultural Contractors, OEE, IEM, heritage heritage sites. In accordance with Dongtai WPMO, PRC regulations, no person shall municipal destroy, damage, deface, conceal, and/or or otherwise interfere with a relic. provincial cultural If an important site is unearthed, heritage stop work immediately and refer bureaus the matter promptly to the county,

46 Appendix 1

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency municipal, provincial, or state agency for evaluation and decision on appropriate actions.

C. Operation Phase 1. Soil erosion Rehabilitated Undertake regular inspections to Dongtai and IEM, sites ensure proper maintenance of WUIMB WPMO, drainage structures and replanted WWRB, areas in accordance with WEPB requirements of the soil erosion prevention plan. Conduct regular maintenance of road slopes, cuts, and embankments—such as watering, fertilizing, pest control, and replanting—during road operation. Budget for maintenance as part of regular infrastructure maintenance programs. WWRB and WEPB will undertake regular monitoring of erosion prevention and control measures. 2. Water quality Wastewater Directly discharge wastewater Dongtai and IEM, from from management offices to WUIMB WPMO, management municipal sewers and the WEPB office municipal WWTP. In cases where connection with municipal sewers is not available, install a septic tank or on-site wastewater treatment facility for treating wastewater before it is discharged into receiving water bodies. 3. Air quality Vehicles for Require all vehicles to pass the WUIMB Wuzhou road network Euro III equivalent test as part of Traffic annual vehicle safety and Bureau, environmental protection WEPB, inspection. WPMO, IEM Conduct random spot checks; noncompliance will result in a fine and a deadline for repairs to meet vehicular emissions standards. 4. Noise Noise from Monitor nearby residential WUIMB, WEPB, Hongling road neighborhoods for noise developers WPMO, network annoyance from the road network. IEM Plan future urban developments to abide by the noise-safe distances. In cases where such distances are

Appendix 1 47

Potential Impact Factor/ Impacts Implementing Supervising Stage and/or Issues Mitigation Measures Agency Agency not possible, adopt such mitigation measures as sound barriers, soundproof windows, sound- breaking tree lines, and traffic control. 5. Solid waste Residential Collect and send residential Pingminchong WEPB, solid waste at garbage from Pingminchong and and WPMO, Pingminchong Zaochong to the municipal Zaochong IEM and Zaochong sanitary landfill for safe disposal . property management agencies (as operating agency) Garbage from Place garbage bins and WUIMB WEPB, operation of containers along the road network. WPMO, Hongling road IEM Undertake regular road cleaning. network 6. Flora Vegetation Properly maintain all vegetation Dongtai and WEPB, covers. WUIMB WPMO, IEM Regularly inspect all slope stabilization sites. If signs of failure are discovered, initiate immediate repair. 7. Environmental Transport of Prohibit the transport of WUIMB IEM, risks chemicals hazardous, toxic, and dangerous WPMO, goods on the Hongling road WEPB network as on inner city roads. Post environmental emergency telephone number on roadsides. Insufficient Conduct training for environmental Dongtai and WEPB, environmental management. WUIMB WPMO, management IEM capacity ADB = Asian Development Bank, EIA = environmental impact assessment, EMC = environmental management company/consultant, EMP = environmental management plan, GB = Guo Biao (national standards), IEM = independent environmental monitor (as part of the implementation consultancy), m = meter, OEE = on-site environmental engineer, PPTA = project preparatory technical assistance, PRC = People’s Republic of China, SEIA = summary environmental impact assessment, WEPB = Wuzhou Environmental Protection Bureau, WPLG = Wuzhou Project Leading Group, WPMO = Wuzhou Project Management Office, WUIMB = Wuzhou Urban Infrastructure Management Bureau , WWRB = Wuzhou Water Resources Bureau, WWTP = wastewater treatment plant. Source(s): PPTA Draft Final Report.

C. Environmental Monitoring and Inspection

5. An environmental monitoring program is presented in Table A1.2. This program considers the scope of monitoring, environmental media, monitoring parameters, time and frequency, and implementing and supervising agencies. The monitoring will follow the methodology provided in the national standard methods for monitoring pollutants. Other associated standards are national environmental quality standards and pollutant discharge and emission standards.

48 Appendix 1

6. Internal Monitoring and Inspection. During the construction, Dongtai with supervision from the WPMO will recruit environmental supervision companies to conduct internal environmental monitoring and inspections to ensure that environmental mitigation measures are properly implemented. The weekly inspections or audits will mainly cover construction activities, but will also review the affected environment. Monitoring results will be well documented, and the contractors and Dongtai will be informed of the outcomes. During operation, Dongtai and WUIMB will be responsible for internal monitoring and reporting to the WPMO, WEPB, and Guangzhou EPB (GEPB).

7. Compliance Monitoring and Inspection. The Wuzhou Environmental Monitoring Station (WEMS) under WEPB will be responsible for regular and random compliance monitoring and inspection before, during, and after construction, as well as in the event of emergencies. If abnormalities are found, WEPB will impose a fine and issue a notice of rectification with a specific deadline.

8. Environmental Acceptance Monitoring and Audit. Within 3 months after each subproject completion, or no later than 1 year with permission from the responsible environmental authorities, environmental acceptance monitoring and audit reports will be (i) prepared by a qualified environmental institute in accordance with the People’s Republic of China (PRC) regulation on project completion environmental audit (State Environmental Protection Administration [SEPA], 2001); (ii) reviewed for approval by environmental authorities who have approved the same individual EIA, and (iii) submitted to the Asian Development Bank (ADB).

9. Independent Environmental Monitoring. An independent consultant will be engaged through international competitive bidding to advise and supervise project implementation. The consultant group will include environmental safeguard specialists to conduct independent environmental monitoring. The results of the environmental monitoring will form part of the semiannual progress reports to ADB and the Wuzhou Development and Reform Commission (WDRC), and the Executing Agency.

10. Environmental monitoring, including the environmental benefits monitoring, will be incorporated into the project performance management system (PPMS). The WPMO with assistance from Dongtai and WUIMB will be responsible for analyzing and consolidating the data through its management information system. The PPMS will be designed to allow adequate flexibility to adopt remedial actions regarding project design, schedules, activities, and development impacts. At the beginning of the Project, the WPMO, Dongtai, and the consultants will develop comprehensive PPMS procedures to systematically generate data on inputs and outputs of the project components and agree on environmental and related social economic indicators to be used to measure project impacts. tThe WPMO, Dongtai, and WUIMB will refine the PPMS framework, confirm achievable goals, firm up monitoring and recording arrangements, and establish systems and procedures no later than 6 months after loan effectiveness.

11. The monitoring results will be used to evaluate (i) extent and severity of environmental impacts compared with the predicted impacts, (ii) performance of the environmental protection measures or compliance with related rules and regulations, (iii) trends of impacts, and (iv) overall effectiveness of the EMPs. Effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. The measures required by the

Appendix 1 49

EMPs will be modified, if necessary. WEPB and the WPMO play critical roles in this feedback and adjustment mechanism as shown in Figure A1.

12. The environmental monitoring program is included in Table A1.2. The cost estimates for the environmental monitoring program are shown in Table A1.7. Before implementing the monitoring plan, responsible agencies will provide more accurate estimates of the costs and present a detailed breakdown of the cost estimates. During project implementation, the costs will be adjusted based on actual requirements.

Table A1.2: Environmental Monitoring Program Item Parameters Location Time and Implementing Supervising Frequency Agency Agency A. Construction (Internal Monitoring) 1. Surface pH, For each Three samples at WEMS, OEE WPMO, IEM, water conductivity, subproject, a the beginning of WEPB SS, NH3-N, minimum of two construction and TN, TP, BOD, locations on the quarterly COD, oils river upstream and thereafter downstream from the construction site

2. Air TSP, PM10 Two monitoring Three samples at WEMS, OEE WPMO, IEM, locations for each each location, WEPB construction site twice a year

3. Noise Leq (dB(A)) One location at the Two measures WEMS, OEE WPMO, IEM, border with (daytime and WEPB settlements within nighttime), 200 m of monthly during construction site peak construction, quarterly at other times

4. Soil and Removal of All sites Weekly visual OEE WPMO, vegetation vegetation and inspection WWRB, IEM exposed surface

5. Safety at Safety of Pingminchong site Weekly visual OEE WPMO, IEM Pingmin- buildings on inspection and chong hilltop measurement

B. Project Completion Environmental Audit 1. Air quality TSP Two locations at Once on Licensed WEPB, Hongling road subproject environmental GEPB network completion, three institutes samples per day for 3 consecutive days at each location

2. Noise Leq (dB(A)) Minimum of 4 Two samples for 1 Licensed WEPB,

50 Appendix 1

Item Parameters Location Time and Implementing Supervising Frequency Agency Agency locations for the day at each environmental GEPB Hongling road location institutes network at boundary and sensitive receptors

3. Soil and Revegetation, All subproject sites Visual inspection Licensed WEPB, vegetation landscaping environmental GEPB institutes

C. Operation (Compliance Monitoring)

1. Air quality TSP, PM10 One location for Semiannually, EMCs WEPB, each subproject three samples per WPMO, IEM day

2. Noise Leq (dB(A)) Four locations for Every second EMCs WEPB, each subproject month, take two WPMO, IEM around boundary samples during and sensitive the daytime and receptors two at night

3. Soil and Vegetation, All sites Annual visual EMCs WEPB, vegetation landscaping inspections WPMO, IEM

4. Groundwater Groundwater Existing One sample twice WEMS WEPB, table, pH, groundwater a year WPMO, IEM conductivity, monitoring wells TSS, NH3-N near Pingminchong and within Hongling

5. Safety at Geohazard Slopes on east side Incorporated into WLRB WPMO, IEM Pingmin- risks and hilltop in north the geohazard chong early warning and forecasting system

6. Flooding Flood level Hongling area During floods WLRB WEPB, IEM monitoring BOD = biochemical oxygen demand, COD = chemical oxygen demand, dB(A) = A-weighted decibel, EMC = environmental management company/consultant, GEPB = Guangzhou Environmental Protection Bureau, IEM = independent environmental monitor (as part of the implementation consultancy), Leq = equivalent continuous noise level, m = meter, NH3-N = ammonia nitrogen, OEE = on-site environmental engineer, pH = measure of acidity and alkalinity, PM10 = particulate matter smaller than 10 micrometers, SS = suspended solids, TN = total nitrogen, TP = total phosphor, TSP = total suspended particulates, TSS = total suspended solids, WEMS = Wuzhou Environmental Monitoring Station, WEPB = Wuzhou Environmental Protection Bureau, WLRB = Wuzhou Land Resources Bureau, WPMO = Wuzhou Project Management Office, WWRB = Wuzhou Water Resources Bureau. Source(s): PPTA Draft Final Report.

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D. Public Consultation

1. Public Consultation during Project Preparation

13. Various public consultations were conducted during the preparation of the feasibility study reports and EIAs. During the feasibility study, the respective municipal governments were consulted to assist in selecting sites and processes. During the EIAs and project preparatory technical assistance, public consultations with various groups of stakeholders were conducted. Public consultations were to assess the environmental impacts of the proposed subprojects on nearby residents and mitigation measures, as well as resettlement issues. These activities were carried out in accordance with SEPA’s 2003 Interim Guidelines on Public Participation in Environmental Impact Assessment, 1 and ADB’s Environmental Assessment Guidelines (Beijing2003).

2. Future Public Consultation Plan

14. Future plans for public involvement during the design, construction, and operation phases were developed during project preparation. They include public participation in (i) monitoring impacts and mitigation measures during construction and operation, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the Project is complete. The plans include several types of consultations, e.g., site visits, workshops, investigation of specific issues, interviews, and public hearings (Table A1.3).

15. Public participation plans are part of the project implementation and management plan. Dongtai is responsible for public participation during project implementation. Dongtai will establish an environmental management unit to supervise implementation, continue the public consultation and monitoring progress, and respond to grievances. The Dongtai staff at the offices will be well trained to handle crisis situations or conflicts with residents due to distress from environmental impacts. Costs for public participation activities during project construction are included in the project funding. The costs are estimated as CNY3,000 for each expert workshop, CNY20,000 for each public investigation on a particular issue, CNY10,000 for each resettlement survey, CNY5,000 for each public workshop, and CNY6,000 for each press conference. Dongtai will cover the cost for public participation activities during operation. In addition, the established feedback mechanisms (Figure A1) will ensure timely feedback and measures to address any concerns raised by the project-affected communities.

Table A1.3: Public Consultation Program Organizer Approach / Times Subjects Participants 1. Project Preparation WPMO, Dongtai, EIA public opinion survey: one for Priority, design, WPMO, Dongtai, design institutes, each subproject environmental benefits design institutes, EIA institutes, and impacts, social EIA institutes, Expert panel review: one for each resettlement plan benefits and impacts, WEPB, other subproject institutes, WEPB mitigation measures, provincial and Socioeconomic and affected attitudes to subproject municipal person surveys project, and suggestions government stakeholders, Public consultation meeting and community questionnaire: one for overall representatives

1 SEPA. 2003. Interim Guidelines on Public Participation in Environmental Impact Assessment. Beijing.

52 Appendix 1

Organizer Approach / Times Subjects Participants Project Site visits: multiple

2. Construction WPMO, Dongtai, Public consultation and site visits: Adjusting mitigation Residents within EMCs, IEM at least once a year measures if necessary, construction area construction impacts, comments, and suggestions Expert workshop or press Comments and Experts from conference: at least one suggestions on mitigation various sectors, measures, public media opinions Public information session: at Adjusting mitigation Representatives of least once a year measures if necessary, residents and construction impacts, social sectors comments and suggestions Survey on resettlement: as Comments and People affected by required per resettlement plan suggestions land acquisition and resettlement 3. Test Operation WPMO, Dongtai, Questionnaire survey: at least Comments and Local residents WUIMB, EMCs, once during test operation suggestions on impact of and social sectors, IEM operation, public WEPB Site visits: multiple, depending on suggestions on corrective results of project completion actions environmental audit

4. Operation WPMO, Dongtai, Public opinion survey: once per Effects of mitigation Residents WUIMB, IEM year in the first 5 years of measures, impacts of adjacent to plant operation operation, comments and suggestions for corrective actions Site visits: once every 6 months Plant operating Plant managers by IEM and WPMO performance, informal and workers, local interviews with local residents adjacent residents to plant Public workshop: as needed Public comments and Representatives of based on public opinion survey suggestions on corrective residents and and public complaints received measures social sectors Expert workshop or press Expert comments and Experts from conference: as needed based on suggestions on corrective residents, social public consultation and workshop measures sectors, media EIA = environmental impact assessment, EMC = environmental management company/consultant, IEM = independent environmental monitor (as part of the implementation consultancy), WEPB = Wuzhou Environmental Protection Bureau, WPMO = Wuzhou Project Management Office. Source(s): PPTA Draft Final Report.

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E. Responsibilities and Authorities for Implementation

16. The Wuzhou municipal government is the Executing Agency and has established a project leading group headed by the vice mayor of the municipality, and the WPMO. The WPMO is located in WDRC, and headed by the WDRC deputy director general. The WPMO draws its members from WDRC, Wuzhou Finance Bureau, WEPB, Wuzhou Land Resources Bureau, and Wuzhou Construction and Planning Commission. Delegated by WDRC, the WPMO will have overall responsibility for supervising implementation of mitigation measures and reporting to ADB.

17. The WPMO, Dongtai, WUIMB, and contractors will each nominate dedicated, trained, and qualified environment specialists to undertake environmental management activities and ensure effective EMP implementation. The independent environmental monitor (IEM) (as part of the project implementation consultancy engaged through international competitive bidding) will assist WDRC, the WPMO, Dongtai, and WUIMB in preparing semiannual EMP progress reports and carrying out training programs. Table A1.4 shows the environmental responsibilities during different project phases.

Table A1.4: Environmental Responsibility Matrix Phase Agencies Environmental Responsibilities Preparation Design institutes Review and select alternatives (technological, design, siting, etc.) EIA institutes Prepare EIAs and EMPs for subprojects, including public consultations WEPB Review and approve the TEIAR, including the EMP, for Pingminchong subproject GEPB Review and approve the EIAs, including the EMPs, for the road network PPTA consultant Prepare the SEIA, including public consultations WPMO Coordinate and supervise the EIAs, SEIA, and public consultations WMG Review and endorse the SEIA, including the EMPs, for posting on the ADB website Design Design institutes Update the EMPs in cooperation with EIA institutes, and incorporate mitigation measures in engineering detail designs and contracts WPMO, Dongtai Review and approve environmental measures Tendering and WPMO, Dongtai, IEM Incorporate EMP clauses in requests for proposals and Contracting contracts Construction Dongtai Ensure implementation of mitigation measures, and public consultations Contractors Implement mitigation measures WPMO, WEBP, GEPB Advise and supervise implementation of mitigation measures EMCs contracted by Conduct internal monitoring and inspection, and public Dongtai consultations

54 Appendix 1

Phase Agencies Environmental Responsibilities IEM Conduct independent monitoring (including public consultations), and prepare periodic monitoring reports for ADB and WMG WEMS Conduct compliance monitoring Test Operation Dongtai, EMCs Conduct project completion environmental audit, including sampling and laboratory tests, and prepare the project completion environmental audit report WEPB, GEPB Review and approve the project completion environmental audit report, and order corrective actions if necessary EMCs, IEM Participate in the environmental audit and prepare progress reports for ADB, and the Wuzhou Development and Reform Commission, and Wuzhou municipal government Operation Dongtai and WUIMB Ensure proper operation of subproject facilities according to design standards, and implementation of mitigation measures and public consultations EMCs contracted by Conduct internal environmental monitoring and Dongtai and WUIMB inspection, supervise implementation of EMPs, and conduct public consultations IEM Conduct independent monitoring (including public consultations), and prepare periodic monitoring reports to ADB and WMG WEMS on behalf of Conduct regular and unannounced environmental WEPB, GEPB compliance monitoring and inspection ADB = Asian Development Bank, EIA = environmental impact assessment, EMC = environmental management company/consultant, EMP = environmental management plan, GEPB = Guangzhou Environmental Protection Bureau, IEM = independent environmental monitor (as part of the implementation consultancy), PPTA = project preparatory technical assistance, PRC = People’s Republic of China, SEIA = summary environmental impact assessment, TEIAR = tabular environmental impact assessment report, WEMS = Wuzhou Environmental Monitoring Station, WEPB = Wuzhou Environmental Protection Bureau, WMG = Wuzhou municipal government, WPMO = Wuzhou Project Management Office. Source(s): PPTA Draft Final Report.

18. Dongtai and WUIMB will be largely responsible for environmental management and implementation of mitigation measures. They will ensure that the EMPs are carried out and will engage design institutes and professional consultants to help with environmental management at the preparation, design, construction, and operation phases. Dongtai and WUIMB will be responsible for arranging environmental monitoring reviews and responding to any adverse impacts beyond those foreseen in the EIAs. They will also attend to the EPBs’ and ADB’s requests for mitigation measures.

19. Construction contractors will be responsible for implementing mitigation measures during construction, while Dongtai and WUIMB will be responsible for implementing such measures during operation.

20. In accordance with the EMPs, Dongtai and WUIMB will set up their environmental management units, which will each require two employees. The environmental management unit will be responsible for (i) implementing the EMPs and developing implementation details;

Appendix 1 55

(ii) supervising contractors’ implementation of mitigation measures during construction; (iii) implementing training programs for contractors; (iv) incorporating environmental management, monitoring, and mitigation measures into construction and operation management plans; (v) developing and implementing internal routine environmental monitoring; and (vi) reporting performance of the EMPs to the WPMO and responsible agencies. The environmental management unit will be supported by the EMCs and supervised by the IEM and WEPB.

21. WEPB, as delegated by GEPB, will ensure the compliance with the PRC and local environmental regulations through regular and random environmental compliance monitoring and inspection during construction and operation. WEMS will conduct the actual environmental compliance monitoring and inspection on behalf of WEPB. On the basis of the environmental compliance monitoring and inspection, WEPB will impose fines and order corrective actions, if necessary.

22. The Wuzhou municipal government will provide Dongtai and WUIMB with financial and management authority to operate the project facilities. Dongtai and WUIMB will be strengthened by environmental management training provided under the Project, as summarized in Table A1.5. They will incorporate environmental management activities into construction management plans.

F. Environmental Management Capability in Wuzhou

23. WEPB has 76 employees. It consists of five sections and three institutions. The five sections cover EIA, pollution control and planning, regulatory affairs and public education, public information office, and general administration. The three institutions include the environmental monitoring station (fully government funded), inspection and enforcement brigade (fully government funded), and the environmental science research institute (partially government funded). SEPA issued a class B EIA for the environmental science research institute.

24. With a history of more than 20 years, the environmental monitoring station has a staff of 44, including 39 (88.6%) with higher education degrees (college and above). It is certified on an annual basis by the national environmental monitoring network. Regular professional training is provided by the national, provincial, and local EPBs and monitoring centers for knowledge and skills upgrading. The station is fully equipped for compliance monitoring (existing pollution sources and completion inspection and monitoring of new projects) and ambient air and water quality monitoring. In addition to conventional equipment, its laboratory has such advanced monitoring equipment as a fluorometer, spectrometer, gas chromatographer, and atomic absorption spectrometer. The station provides more than 30,000 pieces of monitoring data each year.

25. Automated online 24-hour monitoring is currently carried out for a dozen major polluting enterprises, and is planned for 53 more. Monitoring data is compiled quarterly. Compliance monitoring of regular pollution sources is conducted twice a year. In addition, major polluting enterprises are inspected 5–6 times per year with unannounced monitoring visits, and regular polluting enterprises 1–2 times per year.

26. Ambient environmental monitoring is conducted regularly. Three of the seven air monitoring points are at Wangpu (reference point), Yungai Primary School (representing residential areas), and WEPB building (representing mixed industrial–residential areas) Automated continuous monitoring of SO2, NO2, and PM10 is undertaken, as sanctioned in 1993

56 Appendix 1 by the then National Environmental Protection Agency as part of the national air quality monitoring network.

27. The seven surface water quality monitoring points on the Guijiang, Xunjiang and Xijiang rivers were approved and certified in 1993, by the then National Environmental Protection Agency. Three are located upstream of the urbanized area as reference monitoring points for the Guijiang and Xunjiang (north branch and south branch). One is located on the Xijiang at the border with Guangdong Province as an exist reference. Water samples are taken at 0.5 m below the water surface at the center and left and right sides of the section. The monitoring frequency is six times in total for the low-, medium-, and high-flow seasons.

28. The 118 noise monitoring points are determined by dividing the urban area on a 500 m x 500 m basis, covering different urban zones and main roads.

29. According to the requirements of SEPA and GEPB, air quality, in the form of air pollution index, is reported daily to GEPB and published on a daily basis to the general public via the internet and local television.

30. WEMS, under WEPB, has adequate capacity to conduct compliance and ambient monitoring. It will be able to provide adequate environmental monitoring support required by this Project.

G. Institutional Strengthening and Training

31. An assessment undertaken during the project preparatory technical assistance indicates that the WPMO has adequate technical and institutional capacities for project implementation. However, Dongtai and WUIMB have weak capacity in environmental management and monitoring. For proper implementation of the EMPs, the capacity of Dongtai and WUIMB must be strengthened. The proposed training is shown in Table A1.5.

32. The three-tier implementation arrangement—project leading group, project management office, and implementing and operating agencies—provides a reasonable framework for project management and control. The definition of roles, responsibilities and relationships between the these groups and other relevant agencies (e.g., WEPB) is adequate to ensure effective project implementation.

33. Environment specialists in the WPMO, Dongtai, WUIMB, and contractors will receive training in environmental management, environmental monitoring and supervision, mitigation planning, emergency response, environmental policymaking, and other environmental management techniques. Funding of this training will be included in the project budget and in the operation and maintenance budget during the operation phase.

Appendix 1 57

Table A1.5: Institutional Strengthening and Training Activities Target Agencies/ Contents Timing Attendees Strengthening Institutional WPMO, Dongtai, Defining institutional arrangements for environmental During project strengthening WUIMB, WEPB, management, monitoring, and supervision preparation GEPB Defining positions and responsibilities Appointing and recruiting personnel EMCs Recruiting and contracting EMCs for internal Prior to project environmental management consultancy and monitoring implementation

IEM Recruiting and contracting an IEM for the overall Project, Prior to project through international competitive bidding, for implementation environmental management consultancy and independent external monitoring Environmental Dongtai, WUIMB, Developing environmental management clauses and During project management EMCs incorporating them into construction and operation preparation clauses and contracts protocols Developing and refining environmental monitoring protocols Developing environmental emergency response procedures Training Environmental WPMO, Dongtai, Environmental laws and regulations Prior to project laws, WUIMB, contractors implementation regulations, and Environmental policies and plans policies Basic environmental management Environmental emergency response EMP WPMO, EMCs, Responsibility and duties for project construction, Prior to and during implementation Dongtai, WUIMB, management and environmental protection project contractors implementation Tasks of environmental protection during project construction Key environmental protection itemscontents in project construction EMP improvement and corrective actions Environmental Dongtai, WUIMB, Monitoring and inspection methods, data collection and Prior to and during monitoring, EMCs, contractors processing, interpretation of data, reporting system project inspection and implementation reporting Environmental reporting requirements Geohazard WLRB Geohazard management Prior to and during management project Geohazard early warning and forecasting implementation Use and update of geohazard early warning and forecasting system Safety during EMC Training on safety of upper building in Pingminchong Project construction construction area during construction EMC = environmental management company/consultant, EMP = environmental management plan, GEPB = Guangxi Environmental Protection Bureau, IEM = independent environmental monitor (as part of the implementation consultancy), WEPB = Wuzhou Environmental Protection Bureau, WLRB = Wuzhou Land Resources Bureau, WPMO = Wuzhou Project Management Office. Source(s): PPTA Draft Final Report.

58 Appendix 1

H. Reporting and Supervision

34. Internal Monitoring Reports. During construction, results from the internal monitoring by EMCs contracted by Dongtai and WUIMB and/or the WPMO will be reflected in the weekly construction reports. The reports will summarize (i) environmental issues during construction; (ii) mitigation measures taken, if any; and (iii) consequences of the impacts on the environment and/or surrounding communities.

35. The contractors will be trained to take immediate actions to remedy unexpected adverse impacts or ineffective or inefficient mitigation measures, as required by the EMPs. Dongtai will respond to these reports to ensure that contractors have taken appropriate and timely action. Additional measures may be taken, if needed, to ensure that all issues raised by the reports are appropriately addressed.

36. Results from the detailed internal environmental monitoring program and mitigation actions for the construction phase will be submitted on a monthly basis to Dongtai and WUIMB, quarterly to the WPMO, and biannually to WEPB and GEPB. WEPB and GEPB may request that additional environmental mitigation actions be taken, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

37. Compliance Monitoring Reports. WEMS, as authorized by WEPB and GEPB, will be responsible for environmental compliance monitoring and inspection according to the PRC environmental regulations during construction and operation. The compliance monitoring reports will include (i) project background, (ii) construction and operation activities, (iii) environmental conditions, (iv) measurement or sampling taken during auditing and their locations, (v) analytical results, (vi) interpretation and implication of the monitoring results, (vii) determination of the compliance status with regard to applicable regulations and standards, and (viii) recommendations for improvement. WEMS will submit these reports to WEPB and GEPB with a copy to the WPMO.

38. Project Completion Environmental Audit Reports. A project completion environmental audit report will be prepared on the completion of each subproject, in accordance with the SEPA Ministerial Ordinance on Project Completion Environmental Audit (2001) within 3 months after completion. The report will focus on project compliance with environmental performance when it is put into operation. The report will be sent to environmental authorities for review and approval. If noncompliance is found, the Project will be required to be improved to meet the requirements before official commencement of operation.

39. Independent Environmental Monitoring Reports. WDRC and the WPMO have the responsibility to monitor and assess overall project activities under the project design and monitoring framework, and will be accountable to ADB for ensuring effective implementation of the EMPs. The WPMO will be assisted by the IEM, as part of the loan implementation consultancy recruited through international competitive bidding, to fulfil its environmental supervision, monitoring, and reporting to ADB. The environmental monitoring reports will be submitted to ADB, WDRC, and the WPMO on a semiannual basis. The reports will emphasize (i) progress made in implementing the EMPs, (ii) implementation of mitigation measures, (iii) environmental compliance, (iv) institutional strengthening and training, (v) public consultations, and (vi) problems that occurred and corrective actions taken. ADB may request that further environmental mitigation actions be taken, as deemed necessary, and may determine further mitigation measures for different stages, if necessary.

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40. The environmental reporting plan is presented in Table A1.6.

Table A1.6: Environmental Reporting Plan Reports From To Frequency Construction Phase Internal Internal monitoring report Contractors EMC, Dongtai, Monthly monitoring WUIMB Internal monitoring report EMC WPMO, Dongtai, Quarterly WUIMB, IEM Compliance Compliance monitoring WEMS WEPB, GEPB As per the PRC monitoring report regulation

External External monitoring report IEM ADB, WPMO, Semiannual monitoring Dongtai, WUIMB

Test Operation Project Project completion WEMS WEPB, GEPB, Once within 3 months of completion environmental audit report WPMO project completion environmental audit

Operation Phase Internal Internal monitoring report EMC WPMO, Dongtai, Quarterly for the first 3 monitoring WUIMB, IEM years of operation

Compliance Compliance monitoring WEMS WEPB, GEPB As per the PRC monitoring report regulation

External External monitoring report IEM ADB, WPMO, Semiannual for the first monitoring Dongtai, WUIMB 3 years of operation

ADB = Asian Development Bank, EMC = environmental management company/consultant, GEPB = Guangxi Environmental Protection Bureau, IEM = independent environmental monitor (as part of the implementation consultancy), PRC = People’s Republic of China, WEMS = Wuzhou Environmental Monitoring Station, WEPB = Wuzhou Environmental Protection Bureau, WPMO = Wuzhou Project Management Office. Source(s): PPTA Draft Final Report.

I. Work Plan

41. Before construction, the WPMO and Dongtai will develop detailed responsibilities and requirements for contractors, and provide detailed cost estimates of mitigation measures and environmental monitoring in the construction contracts. They will detail the responsibilities of their environmental management offices and prepare their work schedules.

42. Before operation, Dongtai and WUIMB will develop detailed work plans for environmental management and monitoring during operation based on the EMPs. These work plans will be submitted to WEPB and GEPB to help them supervise implementation.

J. Cost Estimates for Environmental Management

43. Dongtai, with assistance from the WPMO, will develop detailed plans for procurement of equipment and materials, and civil works for implementing mitigation measures and monitoring

60 Appendix 1 plans. These plans will be incorporated into project contracts. Environmental considerations will be incorporated into the procurement plan to ensure environmentally responsive procurement.

44. Cost estimates for mitigation measures, environmental monitoring, public consultations, and capacity building are summarized in Table A1.7. WEPB and GEPB will cover the compliance monitoring costs as part of their enforcement functions. The contractors, Dongtai, and WUIMB will be responsible for internal monitoring costs. Independent monitoring costs will be from the project implementation consultancy budget. Before implementing a monitoring plan, the responsible agencies will present a more detailed breakdown of the estimated budget. During project implementation, the budgets will be adjusted based on actual requirements. Contractors will bear the costs for all mitigation measures during construction, which will be included in the tender and contract documents. Dongtai Two project operating agencies, Wuzhou Municipal Transportation Bureau and Wuzhou Municipal Land Resources Bureau, will bear the costs related to mitigation measures during operation. Dongtai and WUIMB will be responsible for costs related to environmental supervision during construction and operation. Costs for capacity building will be borne by the Project as a whole. During operation, the training costs will be included in the operation and maintenance budget.

Table A1.7: Cost Estimates for the Environmental Management Plan Item Incremental Investment (CNY’000) Environmental Mitigation Pingminchong Geohazard Resettlement and Prevention 30 Hongling Road Network 80

Internal Environmental Monitoring 100

Public Consultations 60

Environmental Management Consultancy EIA and Environmental Management Consultancy 80 Independent Environmental Monitoring 120

Environmental Management Training 70

TOTAL 540 EIA = environmental impact assessment. Source(s): PPTA Draft Final Report.

K. Mechanism for Feedback and Adjustment

45. Based on the inspection and monitoring reports, environmental authorities will decide whether (i) further mitigation measures are required as corrective action, or (ii) some improvement is required to environmental management practices. If during inspection, substantial deviation from the EMPs is identified or any changes made to the Project or any subprojects are considered to have the potential to cause substantial adverse environmental impacts or increase the number of affected people, then the WPMO should consult with environment authorities and ADB immediately and form an environmental assessment team to conduct additional environmental assessment and, if necessary, further public consultation. The revised EIA reports including EMPs should be submitted to the environment authorities for approval, and then to ADB. The revised EMPs will be passed to the contractor(s), Dongtai, and/or WUIMB for implementation.

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Figure A1: Mechanism for Feedback and Adjustment

WPLG ADB

WEPB/GEPB WPMO

Consultants (DIs/EMCs)

Dongtai/OAs

IEM

WEMS Contractors (During Construction)

Implementation of Mitigation Measures, Monitoring Program and Public Consultation Plan

Reporting

Supervision

Documentation of EMP Implementation and Performance/Information Flow

Action

ADB = Asian Development Bank, DI = design institute, EMC = environmental management company/consultant, EMP = environmental management plan, GEPB = Guangxi Environmental Protection Bureau, IEM = independent environmental monitor, OA = operating agency, WEPB = Wuzhou Environmental Protection Bureau, WEMS = Wuzhou Environmental Monitoring Station, WPLG = Wuzhou Project Leading Group, WPMO = Wuzhou Project Management Office. Source(s): PPTA Draft Final Report.

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