Attachment 2(1)/Environmental Report/IAIL3

Public Disclosure Authorized E1114 V. 3

ENVIRONMENT REPORT

(HENAN PROVINCE) Public Disclosure Authorized Public Disclosure Authorized

China Research Academy of Environmental Sciences January 2005 Public Disclosure Authorized TABLE OF CONTENTS

1. INTRODUCTION ...... 1

1.1. Purpose and Contents of Report...... 1 1.2. Background...... 1

2. OVERALL ASSESSMENT OF ENVIRONMENTAL IMPACTS OF IAIL2 PROJECT ...... 2

2.1. Environmental Issues of IAIL2 Project ...... 2 2.2. Assessment of Actual Environmental Impacts of IAIL2 Project ...... 3 2.3. Summary Conclusions of IAIL2 Environmental Impacts Assessment ...... 7 2.4. Recommendations for Improvement of IAIL3 Environmental Management.9

3. COMPARISON OF ENVIRONMENTAL CONDITIONS AND ENVIRONMENTAL IMPACTS BETWEEN IAIL3 AND IAIL2...... 9

3.1. Comparison of Project Counties (Cities)...... 9 3.2. Comparison of Environmental Conditions...... 12 3.3. Comparison of Project Contents ...... 14 3.4. Main Conclusions...... 17

4. CLARIFICATION ON PREPARATION OF IAIL3 ENVIRONMENTAL MANAGEMENT PLAN...... 17 1. Introduction

1.1. Purpose and Contents of Report

This Environment Report (the Report) for Henan Province is prepared for the appraisal of the proposed World Bank loan-financed Irrigated Agriculture Intensification Project III (IAIL3, the Project).

The World Bank preparation mission of November 2004 proposed that the environment category of the Project remains to be type B due to the similarities between the Project and Irrigated Agriculture Intensification Project II (IAIL2) in terms of project areas and basic contents. In order to simplify procedures the Bank no longer requires to review a full environmental assessment report for the Project, but requires to 1) assess the actual environmental impacts of the IAIL2 Project; 2) compare the environmental conditions of IAIL3 and IAIL2; and 3) prepare environmental management plan by Project provinces.

In compliance with the above requirements the main contents of the Report include:

1) Overview of the actual environmental impact assessment of the IAIL2 Project Henan Component; 2) Comparison of environmental conditions and contents between IAIL3 and IAIL2 in Henan; 3) Clarification on the preparation of Environmental Management Plan for IAIL3 in Henan; 4) Henan Project Area Environmental Management Plan (attached to the Report).

1.2. Background

Since 1998 the IAIL2 Project had been implemented in 26 cities and counties of Henan’s eight municipalities, including Nanyang, Zhumadian, Luoyang, Kaifeng, Shangqiu, Xinxiang, Puyang and Jiaozuo. The project was completed as scheduled in end 2002.

Project implementation has improved local agricultural productive conditions, promoted agricultural restructuring, increased farmers’ income and improved the level of agricultural technologies, thus achieving remarkable economic, social and ecological benefits. To this end, the State Office for Comprehensive Agricultural Development (SOCAD) has decided to continue to implement the IAIL3 Project in the above five provinces.

1 Entrusted by SOCAD the China Research Academy of Environmental Sciences has undertaken to conduct environmental impact assessment (EIA) for the Project and prepared the Report according to the requirements of the Bank preparation mission.

2. Overall Assessment of Environmental Impacts of IAIL2 Project In June 2004 SOCAD prepared the “Environmental Management Report for the Irrigated Agriculture Intensification Project II” to be as one of the IAIL2 ICR supporting documents (Reference Document 1). The report summarizes and evaluates the environmental management work, status of implementation of relevant environmental covenants in the Loan Agreement and the actual environmental impacts following project implementation. The Report only outlines the actual environmental impacts of IAIL2.

2.1. Environmental Issues of IAIL2 Project

The main objectives of the project were to increase agricultural production and farmers’ income through improvement and rehabilitation of the existing irrigation facilities in the project areas. Main project components include canal lining, constructing on-farm works, rehabilitating existing and building new pumping stations and tube wells, land leveling, improving field passageways and building field drainage network and windbreak shelter belts. The project did not involve the construction of new reservoirs and new main and branch canals. In March 1997 the Bank preparation mission rated the project as Category B in terms of its environmental impacts.

Based on the EIA report of IAIL2 the Project Appraisal Document (PAD) specified that there were no significant environmental issues under the project and, the important environmental issues included likely groundwater overdraft and likely soil salinization, and other issues included the environmental impacts of construction activities and control over the application of pesticides and chemical fertilizers, etc. These issues are shown in Table 2-1.

Table 2-1: Environmental Issues Involved in Project Areas of Henan

Environmental Significant Important Other Environmental Issues Issues Environmental Environmental Issues Issues Likely groundwater Impacts of construction activities; overdraft; Control over application of pesticides Main Contents None Soil salinization in and chemical fertilizers some project areas

2 2.2. Assessment of Actual Environmental Impacts of IAIL2 Project

2.2.1. Significant Environmental Issues

Evidences of project implementation in Henan Province have verified the conclusion in the Bank’s PAD of “the Project doesn’t involve any significant environmental issues”. The project did not see any of them during its implementation and will unlikely see any either in the future.

2.2.2. Important Environmental Issues

I) Groundwater Resources Protection

During project implementation Henan Province had fulfilled the requirements of the Bank Loan Agreement, including:

1) No new wells were built in groundwater overdraft areas; 2) Permits were obtained for driven well for use of groundwater; 3) Depth of all newly drilled wells did not exceed 50 meters; 4) Groundwater monitoring was conducted. In addition, the significance of comprehensive water saving (“real” water saving) was stressed during project implementation through implementing a series of measures including engineering, agronomical and intensified water saving measures, which has produced remarkable water saving benefits with improved water use. Estimations show that after construction of anti-seepage canals water use rate rose from the original 43% to 70% while the rate for anti-seepage pipes and sprinklers reached over 95%. Project implementation has to some extent relieved the trend of groundwater overdraft and declining groundwater table due to a series of water saving measures taken, as shown Table 2-2. Table 2-2: Groundwater Extraction in Henan (1998 – 2002)

Annual Extraction (10000 m3) Annual Five- Average Multi-year year Difference Resources Averag (10000m3) 1998 1999 2000 2001 2002 e (10000m3) Hena n 121,517 131,023 103,952 156,445 128,358 128,259 156,675 -28,416 Note: The difference is that between five years annual average and the normal available groundwater resources. Positive value indicates that actual extraction is greater than multi-year average groundwater resources.

3 Table 2-3 provides the statistics of annual precipitation and groundwater depth between 1998 and 2003.

Table 2-3: Statistics of Annual Precipitation and Groundwater Table (1998-2003)

Multi-year 1998 1999 2000 2001 2002 2003 Item Average Precipitation (mm) 812.3 533.6 894.8 491.3 555.0 1,025 685.7 Groundwater Depth 7.26 7.95 7.30 7.47 7.87 6.60 6.60

Data in the above table shows that there was less precipitation in the project areas within three years and groundwater depth was relatively deeper, which was recovered to the multi-year average of 6.6 m in 2003, indicating that project implementation didn’t result in obvious negative impacts on groundwater resources.

II) Soil Salinization

After project implementation the drainage and irrigation systems in the salinization vulnerable areas had become more rational through renovation of pumping stations and canals. Meanwhile, project areas had taken anti-seepage measures on new and old canals and as a result of which the water use coefficient of canals was higher, the drainage systems worked better and groundwater table was kept below the critical depth. In addition, flood irrigation practices were banned. Therefore, changes in groundwater table had not resulted in secondary soil salinization. Most of the project areas had adopted the combined well-canal irrigation method. Well irrigation leached surface soil nutrients, lowered groundwater table, accelerated soil desalting and constrained soil salinization.

During the implementation of the project, Henan conducted continuous monitoring on soil salinity in its project areas. The monitoring results show that since project implementation no soil salinization problem had occurred in the project areas.

2.2.3. Other Environmental Issues

I) Control of Fertilizer and Pesticide Application

During project implementation, IPM technologies were widely adopted in the project areas. The integration of disease-resistant varieties promotion with application of pesticides with high efficiency, low toxicity and low residue and bio-pesticides replacing original highly toxic pesticides had effectively improved farmland eco-environment in

4 the project areas. Table 2-4 compares the use of pesticides and chemical fertilizers during and before the project.

5 Table 2-4: Changes in Application of Pesticides and Their Residues in Soil and Water in Project Areas of Henan (%)

Reduction of Reduction of Increase of Reduction of Reduction of Pesticides Per Highly Toxic Bio-pesticides Pesticides Pesticides Residue Unit Area Pesticides Residue in soil in Water 30 85 80 Not Available 6.2

In response to the deficit of phosphate and potassium, particularly potassium, the project provinces carried out a number of measures during the implementation of the project to balance soil fertility, i.e. control of nitrogen (reducing nitrogen application in some project areas), stabilizing phosphate (increasing phosphate application in some areas) and supplementing potassium. Changes in soil fertility in project areas between 1998 and 2002 are summarized in Table 2-5.

Table 2-5: Changes of Soil Fertility in Project Areas of Henan between 1998 and 2002

Without Project With Project N P2O5 K2O N P2O5 K2O 1 0.38 0.35 1 0.51 0.46

In addition, advanced fertilizing techniques were disseminated in project areas, such as deep application, mixed application, etc., thus increasing the efficiency of fertilizers, lowering loss of chemical fertilizers and reducing the negative impacts of irrigation run-off on receiving water bodies. During project implementation Henan Provincial PMO conducted environmental monitoring for five consecutive years on the environmental impacts due to project implementation. Table 2-6 summarizes basic environmental monitoring conclusions.

Table 2-6: Basic Conclusions of Environmental Monitoring

Items Evaluation Conclusion 1. Environment Quality 1) Surface irrigation In general, the quality was good and improved year by year. water quality Water met irrigation requirements. 2) Irrigation run-off The quality met the requirement of irrigation with quality comprehensive pollution index decreasing year by year, no significant negative impacts on receiving water bodies. 3) Groundwater Quality was good and stable. Secondary mineralization found quality only in a few spots. 4) Soil pollution Soil quality was good with single and comprehensive pollution indices decreasing. 5) Farm produce Good quality farm produce, which met relevant national quality contamination standards. 2. Soil Fertility Soil fertility increased with more rational composition of N, P and K.

6 The above results indicate that due to effective implementation of various environmental protection measures, overall environment quality was rather good and improved year by year. Project implementation has not imposed any significant negative impacts on the environment. Therefore, the project is environmentally sustainable.

II) Impacts of Construction Activities

Most of the works under this project were excavation and construction of laterals, structures and pumping stations. These works were small and relatively simple and scattered. Most of the activities were undertaken in already developed farmland areas and the construction period was short (generally within half a year). Therefore, environmental problems related to project construction were minor and the impacts were tiny.

In addition, during project implementation, for construction of relatively important projects the contractors were required in the contracts to comply with relevant national and local laws, regulations and standards on environmental protection, sanitation and epidemics control and the Engineers were entrusted to supervise the contractors. Therefore, construction of all civil works caused neither major environmental problems nor significant public health problems or public complaints.

2.3. Summary Conclusions of IAIL2 Environmental Impacts Assessment

Table 2-7 summarizes the actual assessment of environmental impacts of IAIL2. Table 2-7: Summary Conclusions of Environmental Assessment

Items Status of Completion/Assessment Conclusion Significant Environmental No significant environmental issues occurred. Issues Important Environmental Issues 1) Groundwater overdraft Comprehensive measures were taken to prevent excessive exploitation. Groundwater resources within balanced range. 2) Soil salinization No soil salinization was found. Environmental Monitoring 1) Environment quality Five-year monitoring shows improved environment quality. 2) Groundwater table Results from continuous monitoring show a drop of groundwater table due to serious drought. It was recovered in 2003 and close to multi-year average value. 3) Soil fertility Monitoring results show improved soil fertility and composition of N, P and K. Other Environmental Issues 1) Environment management Relevant laws and rules were observed during d i i i N i i l bl 7 during construction construction. No important environmental problems emerged. 2) Control of pesticides and IPM and balanced fertilizing reduced pesticide chemical fertilizers residue and loss of chemical fertilizers.

8 2.4. Recommendations for Improvement of IAIL3 Environmental Management

Based on the lessons learned from IAIL2 in terms of environmental management practices improvements should be made in the following aspects:

1) IAIL2 EMP was not so specific and IAIL3 EMP should be more targeted and applicable; 2) IAIL2 didn’t focus on water saving and water saving objectives should be clearly set for IAIL3; 3) According to the environmental practices of IAIL2 methodologies and contents of environmental monitoring for IAIL3 should be adjusted as appropriate.

3. Comparison of Environmental Conditions and Environmental Impacts Between IAIL3 and IAIL2

3.1. Comparison of Project Counties (Cities)

3.1.1 Comparison by Administrative Division

Table 3-1 lists the project cities and counties of IAIL2 and IAIL3 and Figure 3-1 gives the location of IAIL2 and IAIL3 project cities and counties.

Table 3-1: Comparison of IAIL2 and IAIL Project Areas in Henan (by Administrative Division)

IAIL2 Project Areas IAIL3 Project Areas Municipality County (City, District) Municipality County (City, District) Yuancheng, Sheqi, Xinye, Fangcheng, Yuancheng, Sheqi, Xinye, Nanyang Nanyang Tanghe Fangcheng Zhumadian SuipingMiyang Zhumadian Runan, Pingyu Luoyang Yanshi, Yichuan, Songxian, Ruyang Luoyang Yanshi, Yichuan, Songxian Kaifeng Qixian, Lankao, Kaifeng Kaifeng Qixian, Lankao, Kaifeng Minquan, SuixianNingling, Minquan, SuixianNingling, Shangqiu Shangqiu SuiyangYucheng Liangyuan Xinxiang Changyuan, Fengqiu Xinxiang Puyang Puyang, Qingfeng, Nanyue Puyang Jiaozuo Qinyang, Wuzhi, Jiyuan Jiaozuo Pingdingshan Pingdingshan Ruzhou Xinyang Xinyang Pingqiao, Luoshan, Xixian Note: Bold ones refer to new project cities and counties.

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Figure 3-1 Locations of IAIL2/IAIL3 Subproject Areas in Henan

IAIL2 IAIL3 Puyang

Xinxiang Jiaozuo

Luoyang kaifeng

Zhengzhou Shangqiu

Nanyang Zhumadian

Xinyang

10 Table 3-1 indicates that among the IAIL3 Project spreads in 20 counties/cities from seven municipalities, of which 13 counties/cities are former IAIL2 project areas, three new counties are within the IAIL2 municipalities and four are in new project municipalities.

3.1.2 Comparison by Irrigation Districts

Table 3-2 lists the irrigation districts under IAIL2 and IAIL3.

Table 3-2: Comparison of IAIL2 and IAIL Project Areas in Henan (by Irrigation District)

IAIL2 IAIL3 Irrigation Irrigation County (City, District) County (City, District) District District Yuancheng, Sheqi, Xinye, Fangcheng, Yuancheng, Sheqi, Xinye, Yahekou ID Yahekou ID Tanghe Fangcheng Banqiao Banqiao Suiping, Miyang Reservoir ID Reservoir ID Suya Lake Suya Lake ID Runan, Pingyu ID anshi, Yichuan, Songxian, Luhun ID Yanshi, Yichuan, Songxian, Ruyang Luhun ID Ruzhou Nanwan Nanwan Pingqiao, Luoshan, Reservoir Reservoir ID Xixian ID Qixian, Lankao, Kaifeng, Sanyizhai Qixian, Lankao, Kaifeng, Minquan, Sanyizhai Minquan, Suixian, ID* Suixian, Ningling, Suiyang, Yucheng ID* Ningling, Liangyuan Dagong ID* Changyuan, Fengqiu Dagong ID* Puqing 3rd Puqing 3rd Puyang, Qingfeng, Nanyue ID* ID* Guangli ID Jiyuan, Qinyang, Wuzhi Guangli ID Note: Bold ones refer to new project cities and counties. *Refers to Yellow River diversion IDs.

Table 3-2 indicates that there are two new irrigation districts, i.e. Nanwan Reservoir Irrigation District and Suya Lake Irrigation District under IAIL3, of which Nanwan covers three new counties of Xinyang Municipality and Suya Lake covers two new counties of Zhumadian Municipality. Two other new counties of Liangyuan and Ruyang respectively belong to the Sanyizhai and Luhun irrigation districts of IAIL2.

In addition, according to the irrigation water sources 1) there are some pure well-irrigated areas in Fangcheng, Sheqi counties of Nanyang and Yanshi and Songxian of Luoyang; 2)

11 the counties under Sanyizhai Irrigation District have combined well-canal irrigation system; and 3) other project counties are irrigated with surface water (canal system).

3.2. Comparison of Environmental Conditions

Since the five municipalities of Nanyang, Zhumadian, Luoyang, Kaifeng and Shangqiu are all under IAIL2, the locations of their project areas are the same as or similar to those of IAIL2, therefore there are no remarkable differences in their natural environment.

Only Pingdingshan and Xinyang are new IAIL3 municipalities, of which Pingdingshan has got only one project city of Ruzhou, which, as shown in Figure 3-1, borders IAIL2 project counties of Yichuan and Songxian and all of them belong to the Luhun Irrigation District, therefore their natural environment and water resources conditions are the same or similar.

All of the three project counties of Xinyang are new. Table 3-3 compares the natural environment of Xinyang with that of Zhumadian under IAIL2.

Table 3-3: Comparison of Natural Conditions of Some Project Areas

Item Zhumadian (IAIL2) Xinyang (IAIL3) Subtropical climate, annual Subtropical climate, annual average precipitation average precipitation Climate 800~900mm, annual average 1,000~1,200mm, annual average temperature 14~150C. temperature 150C. Located on hilly areas of Tongbai Topography Located on the Huai River Plain. and Dabie mountains. Most of the areas are covered with hills. Northern subtropical brown soil, Mainly plain Shajiang black whose surface humus horizon is Soil soil, which finds its origin at the 15~ 20cm thick and is slightly loess parent material horizon. acid. Groundwater depth 13m, Hydrology and Medium water-abundant area, dynamic water table 10-20m and Geology acquifer is 3-11m deep. static water table 13m. Banqiao Reservoir Irrigation Nanwan Reservoir Irrigation Irrigation Water District with abundant and District with abundant and Resources reliable water resources. reliable water resources.

Table 3-3 informs that the new project area of Xinyang is similar to Zhumadian in terms of natural conditions. Both of them belong to the subtropical monsoon climate zone, have got abundant water resources with shallow groundwater depth and are all long-term agricultural development areas.

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However, the topography of Xinyang is a bit different from Zhumadian. The project areas of Xinyang are located in hilly areas while those of Zhumadian are located on the Huai River Plain. Nevertheless, some of the IAIL2 project areas in Luoyang are also located in hilly areas and are similar to Xinyang.

The IAIL project areas of Xinyang, Puyang and Jiaozuo are located in northern Henan and north of the Yellow River, which are short in groundwater resources. They are excluded from the IAIL3 Project, indicating that there will be no groundwater overdraft areas in Henan, as shown in Table 3-4. Therefore, the issue of groundwater overdraft will no longer be listed as an important environmental issue in the EMP of Henan.

Table 3-4: Overview of IAIL3 Henan Groundwater Resources

Aquifer Minerali- Extraction Groundwater Water Plate Single Well ID Depth zation Modulus Remarks Depthm Abundance Depthm Yieldm3/h•m (m) g/L (10,000m3/km2•a) Non- Yahekou 2~8 Good 20~30 10~24 10~24 2.5~5 overdraft area Non- Nanwan 1~7 Average 13~28 6~9 2.5 overdraft area Non- 0.26- Suya 1.5~2.5 60~110 10~30 1.5~7.4 2.5 overdraft 0.42 area Non- Plain: 6~15 Luhun 50 0.4 3.5~10.0 overdraft Hills: 80 area Non- Sanyizhai 2~8 Good 5~22 12~30 10~24 10~20 overdraft area

In addition, of the IAIL3 project areas only Sanyizhai Irrigation District is still a Yellow River diversion irrigation district. Table 3-4 informs that the district has got abundant groundwater resources. In fact, some of the counties/cities within this district have been flooded twice in recent years. Part of the reasons is due to large amount of diversion from the Yellow River for irrigation, which resulted in shallow groundwater depth, and rainwater could not seep into the ground in a short period when concentrative rainfall occurred. As a result, large amount of rainwater was discharged to the Huai River, imposing pressure on the river’s flood control. Therefore, under the IAIL3 Project Henan has listed in its EMP rational groundwater extraction and reduction in Yellow River diversion as environmental issues in the province’s project areas.

13 3.3. Comparison of Project Contents

Table 3-5 compares the main contents of IAIL2 and IAIL3.

14 Table 3-5: Comparison of IAIL2 and IAIL3 Project Contents

Project IAIL2 Contents IAIL3 Contents Works Canal excavation, bridges, culverts and Canal and ditch excavation & dredging, other structures, constructing new and structures, drainage & irrigation pumping renovating existing pumping stations, stations, agricultural-use power cable, Water agricultural-use power cable, rural roads, rural roads, O&M equipment, 106 small Infrastructure O&M equipment, constructing 5 water- water storage ponds to be built, 4,843 tube Construction storage dams, repairing and maintaining wells to be repaired & maintained and 4,443 tube wells, drilling 18,989 new tube renovated, 1,022 new tube wells to be wells drilled. Canal lining, underground pipeline, Anti-seepage canals, low-pressure pipes, Engineering sprinkler and drip irrigation and mobile sprinkler and micro-(drip) irrigation and Water Saving surface hoses mobile surface hoses Land leveling, deep ploughing/soil Land leveling, deep ploughing/soil Agronomical loosening, return of straw to field, loosening, return of straw to field, Water Saving balanced fertilization, training and balanced fertilization, training dissemination Management WUA, SIDD WUA, SIDD Water Saving Improved-variety breeding and processing, IMP, county agricultural Improved-variety breeding and extension centers, township stations for processing, IMP, township agricultural comprehensive agricultural services, extension centers, township stations for agricultural machinery, agricultural comprehensive agricultural services, training and agricultural dissemination Agriculture agricultural machinery and service and extension, non-polluted agricultural stations, agricultural training and produce production, dissemination and agricultural dissemination and extension, extension, specialized farmer barn and sunning ground renovation, associations, pilot cooperative fertilizer batching plants operations among farmers and dragon- heads Construction of farmland windbreak Construction of farmland windbreak shelterbelts, nurseries, forestry pest Forestry shelter belts, nurseries, forestry pest control, 2,428 “Four-integrated” control ecological building sites. Training, study tour, technical assistance, Institutional Training, study tour, technical assistance, scientific research and dissemination, Development scientific research, MIS, SIDD office equipment and MIS system, and Support establishment and WUA development farmers’ associations (including WUA) Note: Bold parts refer to new additional contents.

The comparison reveals that while improving, strengthening and rehabilitating the original irrigated agricultural regions, the main contents of the two projects are basically the same, including canal lining, constructing on-farm works, rehabilitating existing and building new pumping stations and tube wells, land leveling, improving field passageways and building field drainage network and windbreak shelter belts.

New additional contents under the Project include: 1) “green”(Non-polluted) farm produce; 2) specialized farmer associations; and 3) pilot farmer-dragon head cooperative

15 operations. In terms of component selection, those with livestock breeding, high water consumption, heavy pollutions and use of wild resources are ruled out. Table 3-6 provides the proposed key pilot bases for production of “green” farm produce and the sites for pilot farmer-dragonhead cooperative operations. Table 3-7 lists the proposed specialized farmers associations to be established in the project areas.

Table 3-6: Green Farm Produce Production and Products Farmer-Dragonhead Cooperative Operations Pilots of Henan Category Municipality County Name Products Nanyang Xinye Vegetabel Vegetable Green Farm Produce Luoyang Yanshi Grape Grape Vegetable Pilot Farmer- Nnyang Xinye Vegetable Cooperation dragonhead Cooperative Grape Operations Luoyang Yanshi Grape Cooperation

Table 3-7: Key Specialized Farmers’ Associations to Be Supported in Henan Municipality County Key Associations for Project Support Yichuan Baiyuan Township Vegetable Farmers’ Association Luoyang Yanshi Dakou Township Nuisance-free Vegetable Specialize Association Songxian Songxian County Checun Town Vegetable Specialized Association Pingdingshan Ruzhou Shangzhuang Township Melon and Vegetable Association Kaifeng Chenliu Town Hanchenwa Agricultural Technological Association Kaifeng Qixian Qixian County Chilly Pepper Association Lankao Batou Township Farmers’ Breeding Association Fangcheng Guangyang Town Farmers’ Leaves Association Yuancheng Peizhuang Village Qinghe Farm Produce Marketing Association, Hongniwan Town Nanyang Sheqi Qingtai Town Shizi Village Nuisance-free Vegetable Association Xinye Xinye County Vegetable Specialized Association Xixian Lukou Township Water Melon Association Xinyang Pingqiao Pingqiao District Pomegranate Association Luoshan Longdian Towhship Liwan Village Vegetable Specialized Association Ningling Shiqiao Township (Crisp) Pear Association Minquan Minquan County Peanuts Association Shangqiu Suixian Suixian County Grape Association Liangyuan Liangyuan District Pepper Association Runan Sanmenzha Township Vegetable Specialized Farmers’ Association Zhumadian Pingyu Litun Township Wangzhuang Village Flower and Tree Association

16 As shown in Tables 3-6 and 3-7 the IAIL3 Project aims at supporting the planting, processing and marketing of green farm produce, farmer-dragonhead cooperative operational organizations and specialized farmers’ associations. There are no activities involving livestock breeding, high water consumption, heavy pollutions and use of wild resources and therefore, there will be no relevant environmental issues.

3.4. Main Conclusions

Based on the comparison of IAIL2 and IAIL3 projects the following conclusions can be drawn:

1) IAIL3 project municipalities of Nanyang, Zhumadian, Luoyang, Kaifeng and Shangqiu belong to former IAIL2 Project and the irrigation districts are also the same as IAIL2. Their project area locations are the same or similar and there are no remarkable differences in the natural environment; 2) Only Pingdingshan and Xinyang are new IAIL3 municipalities, of which Pingdingshan has got only one project city of Ruzhou, which borders IAIL2 project counties of Yichuan and Songxian, all of them belong to the Luhun Irrigation District and have got same or similar natural conditions and water resources. The natural environment of Xinyang is similar to that of IAIL2 municipality of Zhumadian. Both of them belong to the subtropical zone, are abundant in water resources and long-term agricultural development areas. 3) IAIL3 Project no longer includes the municipalities of Xinxiang, Puyang and Jiaozuo where groundwater resources are short. Therefore, IAIL3 Henan doesn’t include groundwater overdraft areas any longer; 4) IAIL3 project areas only involve one Yellow River diversion irrigation district – the Sanyizhai Irrigation District, which has been flooded twice in recent years. Therefore, under the IAIL3 Project Henan has listed in its EMP rational groundwater extraction and reduction in Yellow River diversion as environmental issues in the province’s project areas. 5) The new contents of “green” farm produce, farmer-dragonhead cooperative operational organizations and specialized farmer associations are to plant, process and market their respective local dominant agricultural products and there will be no components involving livestock breeding, high water and wild bio-resources consumption and heavy pollutions. Therefore, new contents will not lead to negative environmental impacts.

4. Clarification on Preparation of IAIL3 Environmental Management Plan 1) According to World Bank requirements the province has prepared a complete and separate IAIL3 Environmental Management Plan to be the attachment of the Report;

17 2) Since the five provinces under the IAIL3 Project vary greatly in natural conditions and differ in focuses on environmental issues, according to the requirements of the Bank preparation mission separate EMPs by province will be prepared to make the plans more targeted at environmental issues and facilitate their implementation by each of the provinces; 3) In view of the successful implementation of IAIL2 and that the natural conditions of the project areas and contents of IAIL3 are basically the same as IAIL2, IAIL3 EMP is prepared based on the experience and lessons learned from IAIL2, which will further improve the EMP for the Project. 4) Compared with IAIL2 EMP, IAIL3 Henan EMP has got the following features: z Identifying first environmental issues involved in the Project, based on which the objectives and contents of environmental management are decided, making the EMP more targeted and applicable; z Emphasizing analysis, evaluation and application of environmental monitoring results; z Clarifying environmental management agencies, their respective responsibilities and costs and sources of funding for EMP implementation; z Making necessary adjustments to the items, parameters, venue and frequency of environmental monitoring; z In light of the current model for construction management of physical projects in China, the environmental protection measures to be implemented by the Contractor are summarized and incorporated into the contract in the form of “Rules for Construction Environmental Protection, with its implementation being supervised by the site Engineer entrusted by the Project Management Office (PMO). Environmental protection measures for construction activities will not be detailed in the EMP. z Dam safety and integrated pest management are listed as separate work items of the Project and will not listed as environmental issues;

Attachment 1: IAIL3 Henan Environmental Management Plan

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