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Prepared Under the Supervisionof the ?--)Communications Department and Compiledin English by EnvironomicsConsultants Co. Ltd.

April 1994 A. INTRODUCITON

The original Chinese EIA for the Guigang Multi-PurposeNavigation Project (GMPN)was prepared by the GuangxiElectric Industry DesigningInstitute (GEIDI) between 1990 and 1991 as part of the Feasibility and Preliminary Design Report. The EIA was reviewed and conditionallyapproved by the National Environmental Protection Agency (NEPA) in December 1991. A supplementalreport was produced in early 1992 to-meet the additional NEPA conditions,thus meeting all the Chinese EIA requirements.

The Guangxi CommunicationsDepartment (GCD) engaged the services of Environomicsin mid-1993to assist in the preparation of the project English languageEIA report for submissionto the World Bank. The Environomicsscope of work included review of the Chinese EIA documents,compilation and re-assessmentof available backgrounddata and information, and drafting of the English EIA report. Due to time and resource constraints, the English EIA is based only on data collected during the original EIA and Feasibility Study. Environomicshas attempted to validate available information with the original field data when feasible, and has sought clarification and amplificationof material from GEIDI to meet as closely as possible Bank EIA requirements.

In addition to the main EIA report, Environomics has prepared an EnvironmentalAction Plan (EAP) and an EnvironmentalMonitoring Plan (EMP) under the direction of the Guangxi CommunicationsDepartment. The latter two documents provide a rationalprogram and schedulefor mitigatingand monitoringpotential project environmental impacts within the technicaland resource constraints of the project proponents.

A.1. Regulatory Framework

In August 1987, Guangxi Autonomous Region Construction Committee submitted Document No. 85 to the Ministry of Communicationsproposing the GMPN project. The Ministry approved the location for the project and authorized the expedited completion of the preliminary project design. In January 1990, Guangxi Communications DepartmentDocument No. 008 assignedthe responsibilityfor performing the EIA to GEIDI which completed the report in 1991.

A.2. EIA Report Preparation

The ChineseEIA was prepared with referenceto the followingregulations and standards:

a. EnvironmentalProtection of Law of P.R.C. b. Water Pollution PreventionLaw of P.R.C. c. Fishing Law of P.R.C. d. Water Law of P.R.C. e. Surface Water EnvironmentalQuality Standard. f. Air-EnvironmentalQuality Standard. g. Urban EnvironmentalNoise Standard. h. EiA Standard of Hydropower from Ministry of Electricity and Hydrology.

1 The English language EIA was prepared to meet as closely as possible the requirementsof the World Bank "EnvironmentalAssessment SourceJBook".

B. PROJECT DESCRTION

B.1. Objectives

The primary objective of the proposed GMPN project is to improve the navigabilityof the Yujiang river between the Xijin dam and Guigangcity. The project will ensure a minimum navigable water depth during dry seasons, thus guaranteeing an uninterruptedflow of shipping and the reclassificationof the river to a 3rd Class waterway accessible to 1000 ton barges. The upgradingwill make the Yujiangriver the backbone of the Xijiang river system transportationstrategy and thus facilitateeconomic developmentin Guangxiand the adjacent provinces.

Additional benefits of the proposed GMPN project include hydropower generationand increasedavailability of irrigation water. Guigangcity and to a lesser extent the upstream Hengxian county are currently constrained in their development due to a shortageof electricpower. The project will have the capacity to generate 120 MW of hydro- electric power to supplementarea supplies. A minimumcapacity of approximately36 MW is guaranteedduring the dry season which amounts to an average 590 GW.h annual power generatiorn.It is also anticipatedthat several thousandhectares of mediumproductivity land will be brought under cultivation following project completion due to the increased availabilityof high quality irrigation water.

B.2. Description

The proposed GMPN project is an integral part of the GuangxiAutonomous Region's economicdevelopment strategy which includesimprovement of its railway, highway and waterway transportation infrastructure. Guangxi is located in central south western China and is bordered by Vietnam to the south; and Guangdong, HIunan, Guizhou and Yunnan provinces to the south east, east, north and west respectively. By virtue of its location, Guangxiis a transitroute for goods and commerce within southwestem China, and an important link for the region's internationaltrade.

The Guangxi road and rail network is currently poorly developed and lacks the capacity to efficiently transport goods to potential markets. Traditionally, waterways have been a major mode of transportationin Guangxi and are currently used for shipment of bulk commoditiesand raw materialsbetween the interior and coastalareas. The proposed GMPN project is designed to increasethe transportationcapacity of the Yujiangriver which flows approximatelywest to east in southernGuangxi and is a major transportationroute for the entire region.

The Yujiang river is part of the Xijiang river system which drains an approximate area of 90,800 km2 and dischargesinto the delta in the east. The river system is a major route for the transportationof raw materialsand manufacturedgoods from as far inland as Sichuan, and thus occupies a vital position in the economy of the region. The improvement of this waterway, combined with other proposed infrastructure

2 projects shall provide the transportation network required to meet the anticipated demands of increasing trade between Guangxi, adjacent provinces, Vietnam and the ports of and .

The proposed GMPN projectconsists of a low head concreteimpoundment and .ock system planned for the mid to lower reaches of the Yujiang river, approximately six kilometers upstream of Guigang City (Figure 1). The area is in the historic flood plain of the meandering Yujiang river, characterized by flat topography with occasional limestone outcrops, and deep, fertile fluvial soils. The project site is located in a straight length of the river which follows a wide turn and continues along the same course through Guigang city. The Yujiang river is approximately400 meters wide at this location and is confined within an eroded channel by unstable earth banks which are marked with drainage gullies and show evidence of erosion and slumping.

The Yujiang river is presently regulated by the low head concrete Xijin dam, approximately 104 kilometers upstream of the project site, and at 110 kilometersdownstream by the dam. The dams were constructedin the 1960's and the 1980's respectively to enhance the navigabilityof the river, provide hydro-power and to improve irrigation and fisheries. The river is currently designated a 6th Class waterway (Table 1), navigable for 100 ton barges. While there is capacity for larger barge traffic during the wet season, the river flow between Xijin dam and the proposed project site is reduced significantlyduring the dry season, exposing some 22 shallow and rocky areas which hinder navigation and increase the hazard to shipping.

(i) Infrastructure

The land transportationsystem in the project area consists of a network of dirt and gravel roads interlacing the countrysideand connecting with paved two lane Class II or Class III highways. National Road 209 located on the northern plane of the Yujiang river is the major trunk road in the project vicinity. This road which is poorly maintainedand very congested carries the bulk of the highway passenger and goods traffic in the region. The railway system in the Yujiang river area is relatively undeveloped; its main function is for hauling bulk materials to small loading facilities along the river which transfer the materials to barges for transportationto downstreamlocations.

The Xijin damnis the major source of electric power for Hengxian County. Several low-head dams along the tributaries of the Yujiang river also provide power to isolated communitiesor commercial operations. Guigang City receives its power from the regional electricity grid which is networked to both thermal and hydro-power plants. Cunrently, the Yujiang river area is constrained in its development due to a lack of electricity. This is particularly true of Guigang City, which suffers from acute power shortages, requiring major industries to generate electricity on site.

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r WrstcveaScsleof Nivig.tiun NavlgablgClur HeightorfCroailg River Srwtume(m) lleet Scale (in) Wavisable lAAaScale (in) Lock Cm) _ ShipModel & (length'WkiLh' Walural & CMaliged Retiricted Naturit & Caruli River RettrictedChannel LAne D.,rje Scale(Lzndth Draft) River Channel Curusture Clug Tom; ge Da ignintS Un n D pth SinlIe Deoubhle epLh Width MuJuIJI Lent th | Width Thrahold Net Net Upper. Skie Net Net Upper. s ide (I) DeigEng Drunl [ntLane UaMIMi Lk) J(11K) Depih Helght WdIh baorm Height Height ith bottom Height iWtdh wiCth IU I ) 1(Hm) l11h) vvih (b) Ih) CHi) (13m) wiIh (b) (h) (1)350(64.833.5 120 I0 242 160 120 7.0 245 _1 2 30D0O 716.213. (2)271*42.6'J.5 100 190 S10 125 95 7.0 (3)267-32.4'3.5 1 75 145 g00 210 34 5.5 95 70 7.0 (4)l92432.403.S 70 130 3.5 130 s0 _ I 85 65 5.0 15 130 100 7.0

_7.3 l0.33 (0)316'32.4-3.5 - 80 150 - 250 _ = SO105 6.0 II1261.5 10.3. (2)245l32.403.4 3.J1 73 14S 740 2tO 14 Is 90 10 S.0 75314'2.6 1()130114-2.6 2.6.3.0 35 70 4.0 65 540 190 16 4.0 10 50 40 6.0 10 65 so 6.0 (I)270-32.4*2.0 oD 150 730 (2)231-21.6-2.0 1I10 _ 720 260 23 J,0-3.5 70 55 6.0 LUA II 1000 67.3*10.32.0 (3)167'21.602.0 0.24 4 990 3.2 35 Soo ISO 23 3.0-435 60 45 6.0 s5 65 6.0 14)160010.32.0 30 60 3.2 50 410 ISO 12 30.3.5 40 30 6.0 10 50 40 6.0

(1)16021.6'1.6 45 90 = - 410 10 23 2.S-3.0 60 s0 4.0 IV 500 45'10.1'1.6 (2)l211'216'6 40 30 2.5 t0 340 120 11 2503.0 g 50 41 4.0 go 66 3.5 11.61.9. ------___(3)10W 10.. 6 1.6-l .S 30 so 2.5 43 330 120 12 2.5.3.0 29 5.0 8 45 37 4.0

- - (I)I25011'I.4'1.3 40 75 380 140 23 2.0-2.5 41 31 4.0 V 300 5'9.2'1.12 7Z19'18.4'1.3 35 70 2.0 75 270 200 23 2.0-2. 8 33 31 4.5 a 7S-7g 62 3.5

(31J719.2'1.3 1.3-1.6 22 40 2.5 40 260 o10 12 2.53-1.0 5 73.30 25 3.5 5 33 32 3.5 2.0 2.0-2.5 8 5.5 I S.0

26S5.2 1.1 (I1161P5.5'20 2.5 11-22 105 190 12 2.1.3.0 - - - 4. 182.2 14-11 3.4

231172,0 (2315414.601.0 25 45 130 160 16 2.5 4.5 22 17 3.4 VI 100 32'6.201.0 (J)656.5S1.0 15 30 1.5 25 200 80 a 5 -. _ 25-30 19 1.6 30'6.4(17.531.0(4)7406.44(7.S)l j.0 15 10 1.5 28 220 s30 I. 6 i 14 4.0 6 23-30 21 3.4 21'4.51.75 (1)27314.9'1.75 2.2 11 e5 140 12 2.5 13 14 2.S

Vil o |23'5.4'0.S )200'5.4E0.t . * .0 o 20 1.2 20 90 110 12 1.2 3.5 14 2.8 3 13 14 2.3 110'6.2'0.7 (J)60'6.S0.7 11- 25 1.2 26 ti30 70 S 1.2 45 1S 11.4 45. 25-30 19 2.8

(23 WIun'..s :arsulkn rueSe2w b eel (as ollaut.ruxwbih twa, brenw pien cs. itn)i naia' vpila)on1. pass sIMfea luhheuP .21t rsdae *.~ 4 012Wlen, hi Jeu IhW 50 ix htlit b% viudgin.a at por t.jWy rn rUb .IbruM2 Is. eehdr *wIhieu in sesmts aFtofuh rivgaLler. (ii) Populationand Output

The zone of influence (ZOI) for the project is approximately 76,300 Km2 which amounts to 32 percent of the area of Guangxi province. The area includes 12.33 million mu (790,000 ha) of cultivatedland and has a populationof 11.4 million, which is equivalent to 26.3 percent of the Guangxipopulation. The gross output value of agriculture and industry in 1992 was 20.6 billion yuan (RMB) with a 10.8 percent average annual increase (calculatedover the period 1981-90). Before 1988,agricultural and industrial output were approximatelyequal. In 1990 the value of industrial output increased to double that of agriculture and in 1992 it reached 16 times agricultural output.

C. DESCRIPTION OF THE ENVIRONMENT

C.1. Natural Environment

(i) Meteorology

The GMPN project area lies in Southwest China and has a subtropical monsoonclimate with distinctrainy and dry seasons. The rainy season, which is marked by heavy monsoonprecipitation, lasts from April to the end of August, while the dry season extends from Septemberto March. Rainfall ranges from 2020.7mm to 975.0mm, with an average annual precipitationof 1450mm. Temperatures range from 39.50C in summer to -3.40C in winter, with an average temperatureof 21.50C.

(ii) Terrain and Geology

Terrain in the project area is generally mountainousin the north, with low lying plaits in the south. The Yujiang river flows through the Xijin step area and into the reservoir from southwestto northeast, forming a U-shaped river valley.

Some sections of the Yujiang river contain navigationalhazards including shallowsand rock outcrops, but most of the river is wide and has a natural flow. The step tableland bordering the river is heavilydeveloped.

Exposed strata at the dam site consists of Cambrian, Triassic, Cretaceous, Devonian and Carboniferous formations, of which the latter two are the most widely distributed. Igneous rocks appear in the Xijin dam and impoundmentarea. Most of the bed rock is covered by Quaternaryperiod strata. Fault activity in the region is considered low and earthquakesabove magnitude5.0 on the Richter scale do not commonlyoccur.

(iii) Surface and Groundwater

The proposedGMPN projectsite is located on the Yujiangriver approximately 104 kilometers downstreamof the Xijin hydroelectricstation. The catchmentarea between the two locationsis 4400 km2, 5.4 percent of the total river basin. There are seven major tributaries and some small reservoirs within this section of the Yujiang river.

The Yujiangriver is the main source of induscrialwater suppliesin the project

6 area, as well as a supplementarysource of domesticand irrigation water. Groundwateris plentiful, and many residents obtain their drinking water from domestic wells.

(iv) Flora and Fauna

The region surroundingGuigang city, includingthe proposed project area, has been heavily developed, and high populrtion density has put tremendous strain on the terrestrial environment. Deforestation and intensive agricultural land practices have decimatedregional riparian biota. Diversity of plant species is low and forest cover which originally dominated the area has been destroyed and replaced by cash crops, shrubs and grassland for cattle grazing. Seasonalflood inundationhas also greatly reduced the diversity of flora and fauna.

Birds and reptile speciesare the predominantwildlife species found within the extremely poor habitat of the project site. The rare species in the region such as pangolin, masked civet, silver-ring snake, and white crane inhabit mountainousand densely forested areas at a distance from the site, and hence are unlikely to be affected by the project.

The Yujiang river has an abundanceof aquatic organisms includinga variety of fish species and hydrophytes,some of which will experience impacts from the project.

C.2. Socio-economicSetting

(i) Local Economy

The project area is within a major agricultural region which produces approximately27 percent of Guangxi's agriculturaloutput. Cultivatedcrops include cereals such as rice, wheat and con, and also peanuts, sesame, mushrooms, sugarcane, fruits, tea and tobacco.

Farming activities have historically been constrained due to poor transportation, inadequate power availability, and cycles of drought and flooding. A secondary benefit of the project therefore will be the greater availabilityof quality :mgahion water and the bringing into production of dry uncultivatedlands.

Currently, the full potential for industrialoutput and commerce in the project area has not been realized. The major light industries process or produce sugar, paper, fertilizer, food products, textilesand leather. Heavy industries include manufactureof steel, concrete, and machineryas well as miningof coal and other minerals.

(ii) Populationand IndigenousPeoples

The project area has a populationof 11.4 million, approximately90 percent of which is rural and dependson farming or fishing for subsistence. Some 40 percent of the population is made up of non-Han nationalities,with a large majority being Zhuang. The various nationalitiesin the reservoir area are relatively well integrated with the exception of some isolated inland and highland villages which are predominantlyZhuang. The latter communitiesare not within the direct area of reservoir impact.

7 (iii) Cultural and HistoricalProperties

Various surveys were performed during the feasibility study to inventory cultural and historic sites in the reservoir area and identify potential impacts of the proposed project on these sites. The Traffic Planning, Prospecting and Design Academy (DTPPDA)in collaboration with provincial historical relics authorities prepared a report in accordance with "The Cultural Relics ProtectionLaw of the People's Republic of China," which identifiedapproximately 17 sites within t' e reservoir area. The DTPPDA performed a comprehensivesurvey of the reservoir area over a one year period and compiled sufficient infornation to characterize the historic sites and provide suggestions for mitigation alternatives where required. The DTPPDA survey was peiforned on both banks of the Yujiang river from Watang town in Guigangcity to Hengzhou in Hengxian county.

Historical and cultural sites in the project area include: twelve Neo-lithic period relic sites containingartifacts such as pottery and stone implement; onc ancient city site; one ancient kiln site; a group of ancient tombs and burial mounds from the Nan Dynasty; and three historic structures: the Mother Dragon Temple, Fubo Temple, and Haitang Bridge.

(iv) Public Health

Diseases which have previously affected the reservoir area include viral hepatitis, dysentery, typhoid fever, encephalitisB and malaria. Viral hepatitisand dysentery currently pose the most widespreadproblems in the region. Incidence of encephalitisB has greatly decreasedin recent years. Blood fluke and schistosomiasiswe.e eradicated in 1983, and filariasis was eliminated in 1990. In the last five years, the incidence of malaria has dropped to below 1110,000.While the enlarged area of stagnant water resulting from the project is a potential breedingground for mosquitoes,based on the experience of the nearby Xijin dan, this is unlikely to increase the incidenceof malaria in the reservoir area.

D. ANTICIPATED ENVEIRONMENTALIMPACTS AND MITIGATION MEASURES

D.I. Location Issues

(i) Inundation Managementand Prevention

Followingcompletion of the GMPN project, the water levels in the reservoir will rise approximatelysix meters above pre-constructionlevels. The total inundatedarea is estimated at approximately 6,735 mu (450 ha), including 2,537 mu (169 ha) of paddy fields and 1,498 mu (100 ha) of dry cultivatedland. The area affected by inundationcovers 12 counties of Guigang city and Hengxian county.

During the primary stages of the GMPN project, engineering measures will be taken to minimize loss of land and other economic assets due to inundation. These include reinforcementof existing dikes and ctnstruction of additionalones in key areas. As a result of these measures, it appears that the GMPN project will not increase flood water levels during the rainy season and that any inundationwill be in low-lying areas, below the

8 design reservoir operatingwater level and primarily in the tributaries of the main channel.

Approximately716 ha of land will be protectedfrom inundationin 46 different areas. Cultivatedlands account for 576 ha of the protected area and the remaining 140 ha includes residential areas and economicinstallations. The total area to be inundated after prevention measures are taken is 448 ha, of which cultivatedland accounts for 268 ha.

There are currently 11 dikes and embanlknentswith an area of 7,000 ha in the reservoir vicinity. Of these, 78 embankmnentswill be affected by inundation, approximately46 of which will be rebuilt as part of the inundationprevention program. Embankmentlocations are shown in Figure 2.

(ii) Socio-economicimpacts

The provincial govemmenthas taken considerable care to design the project in a manner which will minimizedisruption to area communities,economy, environmentand historical sites. Where possiblethe project designhas optimizeduse of protection measures and suggested alternativesto minimizeeconomic dislocation of farming communities. As a result, it appears that no physical resettlementof communitiesis necessary since the project reservoir area will be within the 10-year flood plane which currently has only ten houses. The occupants of these houses have required that a dike be built to protect their property and the govemment has agreed to do this. The compensationprogram which has been formulated to assist farmers who will lose their land still requires more detailed planning. The local governments which are responsible for this aspect of the project have already mobilized teams which will assist in the project implementationat the grass roots level.

The lands of 12,696 people are potentially subject to inundation, however following protective measures which will be taken as part of the construction project, the official estimate is reduced to 4743. All efforts will be made by the city and local governments to ensure economic relocation will take place within the same vicinity.

In order to offset the losses of land caused by inundation,the fullest possible use will be made of local natural resources. Farmlands that now provide only low or mediumyields will be upgradedthrough introductionof irrigation and intensiveagricultural techniques. Wastelandand barren hills are to be reclaimedand irrigated for growing grain crops and planting trees and orchards. Aquaculturewill also be expanded in the reservoir. Moreover, emphasis will be placed on agro-technicaltraining to help the local population improve the agriculturalproductivity of their lands. Details of economicmitigation measures are contained in Table 2.

Little impact is expected on the industrial sector of the region. The project is likely to have positive ramificationsfor local industry by facilitatingthe transport of raw materials and industrialgoods in and out of the area.

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Item Unit Grtd Guisnt City HengxiLnCounty Total Total Qiaoyu Xlntang Watang Sihual ShiA Doling Total Haite Y.Abhlo

FPnnradTo Populution People 4994 4138 2120 44 701 1097 30 158556 560 296 Be Upgruioi To Be AffectedIn

Area Mu 31815 10392.5 3392.5 154 2453.5 3139.5 553 2996 1960 1036 InveuIment x10"lOMI 5.6900 4.4167 I.4415 0.0654 1.0427 1.6311 . 0.23S0 1.2733 0.813 OU0.4 Grain Ton 1338.85 1039.25 339.25 15.4 245.35 383.9S 55.3 299.6 196.0 103.6 lnertua OutputValue xlO RMtI 0.9372 0.7275 0.2375 0.0101 0.1717 0.2618 0.0387 0.2097 0.1372 0.072o Not incomc xlO RM13 0.6696 0.5197 0.1696 0.00077 0.1227 0.1920 0.0277 0.1499 0.0981 0.0521 New tAnd To Arm Mu 1849 1733 1502 . 45 186 116 30 l86 lie Reslauned Investment zIG'103Ria 2.7274 2.5562 2.215 . _S 0.064 0.2743 0.1712 0.0443 0.12e69

Gain Yield Ton 924.5 166.5 751.0 * _ _ 22.5 93.0 5S 25.0 4310 OuipulValue xl O1RJ1t 0.6471 0.6065 0.5257 . . .0.0257 O.65 06 0.0105 0.0301 NeoIneoet xzI' OU13 0.2959 0.2773 0.2403 . _ 0.0062 0.0298 0.0116 0.0048 0.0131

Reoemiployed I'eople 915 857 751 13 93 5S Is 43 ______Population ______rull Tree Area Mu 4662.5 3459 1117 66 1051.5 1097 30 97.S 1203.5 817.5 2Z6 PlIatling Inveusment xIC RMd!D 113.8711 10.2906 3.3231 0.1964 3.1282 3.2631 0.0193 0.2901 3.5805 2.4321 1.14U4

Output Value xI0',R1!t 10.4773 7.6125 2.5133 0.14SS 2.3659 2.3695 0.0649 21.94 2.7958 1.9620 0.8331 Net Incume xIltR1ill 7.53961 5.7442 1.IS77 0.1115 1.7770 1.7552 0.0410 0.1648 1.1520 1.2144 0.6176

Re.employed IPeople 3779 3041 [III 44 701 1097 17 6S 738 545 193 Populaioln __

Towrnhip And Inv" rntnl xIO' Rlt 5.00 3.00 1.00 _ _ . . 2.00 2.00 VEillrse OUtpUtValue xaIff nl] 10.00 8.00 1.00 . . . 2.0 . 2.00

Not Income xalO' MM3 2.00 1.60 1.60 _ * . 0.40 0.40

Re-employed People 300 240 240 . . . 60 . 60 Populatlon _ _ Social Developinent alO'1R0R1 0.99c8 0.8276 0.4216 0.0088 0.1402 0.2194 0.006 0.0316 0.1712 0.112 0.0592 Devclopment Investment (iii) Flora and Fauna

The project ZOI is a major agriculturalzone of Guangxiprovince. Substantial wetland reclamationand cultivationhas occurred in this area and currently no undisturbed wetlands have been identified within the proposed project area.

Due to the generallypoor qualityof naturalvegetative cover in the projectarea and dominanceof cultivatedland, it is anticipatedthat constructionof the Guiganganchorage will not affect a large area of natural vegetativecover. The flooding of mud-flatsand grass beds, however, will impact many bird species and reptiles which inhabit these areas.

A major impact to wildlife resultingfrom this project will be the disruption of tortoise and soft-shelledturtle habitat. The current existenceof reservoirs in the lower and upper sections of the river combinedwith the proposed new impoundmentwill create a closed river system which may be unfavorableto the tortoiseand soft-shelledturtle. Due to their importancein the region, the followingmeasures will be considered to assure their survival.

A mitigationalternative for potential impacts to tortoise and soft-shellturtle habitatis to allow surroundingfields which will be inundatedto revert to wetlands. Captured tortoise and soft-shell Lurtlespecies could then be relocated to these shallow wetland areas as well as to tributaries which will be enlarged after submergence. Furthermore, these wetland areas would provide valuable habitat for wading and aquatic birds displaced by submergencein the immediateproject vicinity. Secondly,a system of spawningplants may be set up to provide tortoise and soft-shelled turtle to the local population in order to decrease pressure on the wild populationsonce they are relocated. The schedule for project construction should be carefully planned in order to accommodatethe tortoise and turtle breeding season and thus assure a populationsize that will be amenable to relocation.

Prior to constructioninitiation, further surveys to locate endangeredanimal species in the project area may be necessary. In particular, care shouldbe taken to ensure that no China-autumnducks, pangolin, maskedcivet, silver-ringsnake, or white crane are nestingat or near the site. If any of these species are located, special mitigationplans will haveto be detailed. However, creationof new wetlandareas surroundingthe site will reduce the impacts on wading and aquatic bird species and possiblymake relocation unnecessary. In the case of the silver-ringsnake, relocationwill be the only option.

Changesin the river ecosystemwill ,fffect aquaticplants in the reservoir and downstream areas. Fish and hydrophyte species will have to adapt to direct and indirect man-madechanges in environmentalconditions. Some specieswill adapt while others will not, experiencingreductions in population.

To mitigatelosses of commerciallyvaluable fish stock, four spawningfacilities will be constructed and hatchery efforts will be focused on commercial species. An alternativeis to thoroughlyutilize all remainingwater bodiesfor aquaculture, includingriver bends. Employmentopportunities from these mitigationmeasures will contribute to the economic developmentof migrants.

12 Measures will be taken both during and after constructionin order to minimize impacts to hydrophytepopulations. During construction, special measures such as the use of sand bags and hay bails to control erosion and reduce sedimentflow into the river course will be employed. Oil slick booms and cleanup equipment will be employed to assure that oil and petroleum productsfrom equipmentused during constructionwill not contaminatethe river.

P 4 ajor impact of the projecton the aquatic environmentis that of altering river flow velocity/ Althoughthe retention time in the reservoir is short, in order to sustain hydrophyte populations,it is important to limit stagnationin the water body by maintainingproper flow rates in the dry season. Continualmonitoring of hydrophytepopulations should be carried out upstreamand downstreamof all the impoundmentswithin the Yujiang river and its major tributaries.

(iv) Impact on Culturaland Historical Properties

Several of the cultural and historical sites mentionedearlier, including the ancient kiln site, the Nan dynastyburial mounds, the Mother Dragon Temple, Fubo Temple and the Haitang bridge, are either well removed from the reservoir or are elevated above the maximum design storage water level and as such will not be impacted by the project. In some cases such as Fubo Temple, the river banks below the site may be de-stabilizeddue to the elevated water level. Therefore slope protection and reinforcement measures may be necessary to ensure site stability.

Thirteen culturaland historic sites will be affected by inundation. One of them is the ruins of an ancient city from between the Nan and Qing dynasties, while the other twelve are Neolithic age relics. Since the water level will nse and the passing of large vessels will cause bank erosion, bank collapsewill be aggravatedand may encroach on some of the more important sites. Therefore protection measuresare needed where possible and in some cases excavation and removal of relics may be necessary.

D.2. Construction Issues

(i) Noise

Much of the constructionequipment and activities includingblasting and pile driving at the proposed project site will emit noise above 90 dB. This is above regulated standards in China (65 dB) and will cause hearing damage to construction workers in the e-ent of prolongedexposure. Thereforehearing protectionis recommendedfor construction workers. The noise sources are approximately900 meters away from the closest residential units and as such will not cause significantimpacts. The major noise in the residential units is anticipated to be from the existing highway. Noise levels are anticipated to reach approximately57 dB during the peak constructiontimes when 60 trucks will pass through the site each hour. The post constructionactivities are not anticipated to result in noise levels above regulated standards.

13 (ii) Soil Erosion and Dust

One major environmentalimpact of construction is atmospheric degradation due to fugitivedust and increased erosion resulting from removal of surface vegetation. To minimize fugitive dust impacts, road surfaces, excavation areas and construction areas will be sprayed and kept moist for dust control. Erosion control may be achieved by minimizing vegetationremoval and exposed surfaces untilnecessary, and by installingsilt traps and other erosion prevention measures- After constructionis completed, the site and its surrounding areas will be restered as closely as possible to their original state.

(iii) Atmospheric Pollution

During construction, air quality in the project area will be impacted by construction machinery, emissions Cromblasting, excavation and earth moving operations. Pollutantsinclude NO., S02, CO, CO2 and hydrccarbons, while CO and NO. are the primary emissions released by blasting activities.

The extent of air quality degradationduring construction is dependent on the intensity of site activities. It is anticipatedthat serious air quality degradation will occur on calm days (wind speed below 3 mIs) when site activities are at a peakland an atmospheric inversion occurs. Air pollution can only be controlled by reducing the number of construction vehicles working in one area at a given time.

(iv) Surface Water Pollution

Water quality impacts due to biodegradable materials are anticipated to improve sligh,ly and deteriorate sliuhtly in terms of metals and COD. Downstream water flow will rer,wanrelatively stable with the exception of certain periods of the dry season, when water will be retained in the reservoir for electricity generating purposes, resulting in downstream water quality degradation.

Water quality will deteriorate downstream of the project due to the increased concentration of industrial effluent from the Liyujiang river, which discharges into the Yujiang river in Guigang. Moreover, the significant increase in river traffic will increase the scale of oil contaminationin the project area, necessitating prevention and remediation measures.

In order to ensure that water quality standardsare met, comprehensivecontrol of discharges from existing contaminationsources will be implementedby the local EPB. Greater attention will also be paid to the control of contaminants from sugar and paper manufacturing, as well as to waste water collection and treatment both upstream and downstream of the reservoir area.

To control barge waste oil discharges, all motorized ships will be equipped with oil-water separators to ensure that oil content in the discharged bilge water does not exceed 15 mg/l. Where installationof such devices is not feasible, then a waste oil container will be kept on hand. The navigationadministration and navigation monitoringdepartments will equip special ships to collect waste oil at regular intervals or by patrolling the river.

14 (v) Economic Impacts of Construction

Constructionof the dam is anticipatedto last approximatelyfive years. During the peak period of constructionin the second year, an estimated 3300 workers will be employed on site. It is anticipated that infrastructure for the workers may encroach on adjacent economic activities such as agricultural production and cause sume degree of interruption. River traffic will be at least temporarilydisrupted, and local roads will become congested as large amounts of materials are transported back and forth in the constructica process. However, local residents will benefit economicallyfrom the opportunity to sell constructionmaterials, food and other goods to the workers.

(vi) Public Health

- Project constructionwill potentiallyexacerbate existing public healthproblems in the region, particularlythe incidence of water-bomediseases such as dysentery and viral hepatitisas well as vector borne diseasessuch as malaria. The high concentrationof people in the reservoir area and resulting increasein the volumeof sewage will potentiallypromote disease transmission. Basedon the experienceof other hydro-electricpower stations, it can be anticipated that the incidence of epidemic diseases will increase, necessitatingeffective countermeasures. In particular-,the threat of epidemic diseases brought in by the floating populationin the area will need to be dealt with. Diseases transmittedby rats are likely to increase as they are driven from their original habitatsby rising water levels.

In order to protect public health during construction, strict hygienic requirements will be placed on the living quarters of workers in the construction area, particularly the controlled disposal of solid waste (i.e. landfilling)and domestic sewage. Efforts will be made to avoid potentialbreeding grounds for rats, mosquitoesand flies, and a disease prevention unit will be put in place to detect the spread of epidemic diseases. Drinking water supplies will be placed a sufficientdistance away from solid waste disposal areas and septic tanks. In order to safeguardwater qualityin the reservoirafter construction, the bottom of the reservoir will be cleaned six months prior to water storage.

E. PROJECT ALTERNATIVES

The Guangxi CommunicationsDepartment has investigatedvarious methods for ensuring unimpededriver traffic in this segment of the Yujiang river. Dredging and blasting of shallow rocky areas has been investigated,yet neither will provide unrestricted access during the dry season. As such, the project feasibiiityreport identifiedthe GMPN project as the only means to insure access to 1000 ton barges by raising the water level permanently to high flow season levels. The additional benefits accrued from electrical power generationand improvedirrigation also adds to the economic feasibilityof the project with relatively minimalimpacts to the reservoir area.

15 F. INSTlIlTUONAL REQUIREMNS AND ENVIRONMENTALMONITORING PROGRAM.

F.I. Institutional Arrangements

The reservoir area traverses Hengxian County and Guigang City and passes through a total of twelve villages and towns within the river valley. The major administrativeauthorities within the reservoir are the Office of the Mayor of Guigang City and the Director of Hengxian County. The populationand resource managementauthority pertaining to the proposed project is within these local offices. The reservoir and lock construction and managementhowever occurs at the provincial level by the Xijiang River Second Stage Project Headquarters (XRSSPH)which is under the Guangxi Communications Department (Figure 3).

F.2 EnvirornmentalMonitoring

In order to evaluate environmentalimpacts during and after the reservoir construction, a monitoringplan has been formulated which meets regulatory requirements, and includes parameters, locations and frequency of monitoring. Short and long term environmentalmonitoring shall be performed to evaluate project impacts and trends so that both retroactive and pro-active measures may be taken. The scope for monitoringincludes air, noise and water quality, ecology, bank failure and inundation. The monitored data will be used to upgrade the project EnvironmentalAction Plan (EAP) and formulate effective mitigation measures.

An environmentalmanagement and monitoringstation will be establishedin the project area during the construction phase under joint supervision of the project proponents and Guigang EPB. Following construction completion, the environmental managementand monitoring of the project will be undertaken in support of the waterway managementunit. It is anticipated that two technicalpersonnel will be required to oversee the GMPN project environmental activities. Monitoring reports and mitigation recommendationswill be issued on a quarterly basis, within 45 days following completion of quarterly field monitoringactivities. -

Atmospheric, noise and warr quality monitoring shall be performed by.the Yulin Environmental Monitoring Station)duringconstruction. Meteorologicalobservation shall be conducted by the constructionunit during constructionand by the GMPN project managementauthority during the operationphase. Bank failure and inundationobservation shall be conducted by survey and design institut Copies of all data and other relevant information will be submitted to the project enviro mental office for compilation, analysis and report preparation. x1

G. PUBLIC INVOLVEMENT ANT)COMPENSATION

When the GMPN projectinundation area was estimated, the GCD transferred the information to the Hengxianand Guiganglocal authorities. Teams drawn from the local populationwere then organized to delineate impacted properties and determine the affected population size.

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17 Once informationwas compiled, the leaders at the city and county level with assistance from GCD establishedworking groups to discuss the impact that the project would have on the local populationand to determine a compensation system for those displaced from their land. Implementationand monitoringresponsibility rests with local governments. The compensationscheme was formulatedin accordancewith these regulationsand addresses both individual and community requirements. The compensation scheme is two-fold: 60 percent of funds distributed would be provided directly to individual farmers to ensure their livelihood for up to one year until new land is assigned; the other 40 percent would go to local governments to address infrastructure needs including establishmentof townshipand village enterprises, and the social costs of re-employment.

Village leaders were consulted to determine the compensationto be awarded to each farmer, based on the quantiy and quality of land as well as annual income. The level was establishedat approximately10,000 yuan per mu. In September1993, a committee was formed undertGCDwhich with input from local authoritieswill hold public meetingsin impacted areas within the next two years to announce the compensation scheme and sign contracts with farmers willing to relinquish their lands. Based on initial surveys the participants can be categorized into three groups:

a. Those willing to relinquish their land and accept financial compensationand a new plot of land.

b. Those wishin.to receive higher compensation to leave farnuing and either begin their own enterprise or be retrained.

c. Those unwillingto leave their land and requiring protection measures to be tak-en.

It appears that the majority of affected farmers fall into these categories and can be accommodatedby the govemment. The one requirement voiced by all concerned however is that relocation to another area is not acceptable.

The total estimated compensation for the reservoir region is reportedly 110,041,700 yuan. This amount is deemed the minimum necessary to restore and develop the economic productivityof the impactedareas.

I. SUMMARY AND CONCLUSIONS

The likely negative impacts of the GMPN project are considered acceptable and are offset by its positive economic and social ramifications. By improving the navigabilityof the Xijiang river system, which is a vital route for the transportationof raw materials and manufacturedgoods, the project will spur economic developmentin Guang,xi and adjacent provinces. Additional benefits include hydropower generation and increased availability of irrigation water.

The principle impactson the environmentinclude disruption of areas adjacent to the project site, soil erosion, tempomry water quality decline, and air quality degradation resulting from the constructionprocess Impacts to terrestrial and aquatic resources appears

18 to be minimalsince the proposed project will be located on a highly regulatedwaterway and will not create significantlynew conditions.

Potentialimpacts may occur due to the large labor populationwhich the project will attract. Health and sanitationimpacts will have to be managedby placing strict hygienic requirements on workers' living quarters, controlling solid waste disposaland disposingof sewage in septic tanks. Thirteen cultural and historic sites will be affected by inundation, necessitatingprotection measures and excavationin some cases.

The overall projectimpacts are minimizeddue to relativelygood planning and implementationstrategies on the part of the project proponents. Despite inundationcaused by increased water levels in the reservoir, engineering measures preclude the need for physical resettlement of the affected population. For those whose lands are inundated, compensationwill be provided and a comprehensiveprogram to upgrade marginal fields, reclaim wastelands,and expand aquaculturewill be implemented.

19 KEY ELEMENTS OF THE EAP FOR TIIE GUIGANG MULTIPURPOSENAVIGATION PROJECT Environmental Issue Action TakenTo Fe taken Responsible ntiyrks

A. ConsirulictionPhase

1. Air pollution Road surfaces,excavation areasand construction areaswill be sprayed Construction unit and kept moist for dustcontrol.

The number of construction vehicles working in one area at a given Construction unit time will be restricted.

2. Noise Unnecessarynoise from blasting, pile driving and other construction Construction unit activities will be controlled and minimized.

3. Surface water pollution The reservoir bottom will be cleaned before water storage begins, Construction unit including removal of vegetation,construction debris and other wastes.

4. Soil erosion Erosion control will be achievedby rninirmizingvegetation removal and Construction unit exposed surfacesuntil required by construclion, and by installing silt traps and other erosion prevention measures.

5. Ecology The project consiruction scheilule will be planned in order to Guigang EPB. Hengxian EPB accomodatethe tortoise and turtle breeding seasonand thus assurea Construction unit population size that will be amenableto relocalion.

Furtiler surveys will be undertaken where necessary to locate Guigang EPB, Hengxian EPB endangeredanimal speciesin the project area.

6. Inundation During the primary stagesof the project, engineering measureswill be Construction unit laken to minimize losses of land and other economic assels due to inundation, including reinforcement of existing dikes, construction of additional ones in key areasand building of drainage stations. EnvironmentalIssue Action Taken/Tobe Taken ResponsibleEntity Remaiks

7. Public health In order to prevent the outbreak of epidemics, strict hygienic Construction unit requirementswill be placedon the constructionarea and workers' GuigangHealth Department living quarters,parlicularly through the controlleddisposal of solid waste (i.e. landrilling) and the use of septic tanks to disposeof domesticsewage.

Efforts will be made to avoid potential breeding grounds for rats, Construction unit mosquitoesand flies, and a diseaseprevention unit will be set up to GuigangHealth Department detectthe spreadof epidemicdiseases.

Drinking water supplieswill be placedat a sufricientdistance away Water SupplyCompany from solid wastedisposal areas and septic tanks. GuigangHealth Department

8. Culturaland historic Slopeprotection and reinforcement measures will beundertaken where Constructionunit sites necessaryto ensurethe stabilityof culturaland historicsites. Guangxi ProvinceCultural Relics Department Excavationand removal of relicsmay be necessary in somecases, such Constructionunit as the Neolithic age relics locatednear the dam. as well as the GuangxiProvince Cultural Relics Shangjiangkouand Jiaoyiechong relics. Department

9. Relocationmanagement A dike built to protectthe ten housesin danger of inundationwill Guigangand Hengxiancounties andeconomic precludethe needfor physicalresettlement of communities. development Farmerswho losetheir landsdue to constructionwill be compensated. Guigangand Hengxian counties

B. Post-Construction Phase Comptehen-ivecontrol of dischargesfrom exisling contamination GuigangEPB 1. Surfacewater pollulion soureet"ill he implementedby the local EPB.

areatefattenti(in will bepaid to thecontrol of contaminantsfrum sugar GuigangEPB, tengxian EPB and paret manufacturing,as well as waste water collection and trentinenttIuth upstreamand duwnstreamof the reservoirarea. EnvironmenialIssue AcMionTaken/To Be Taken ResponsibleEntity Remarks

To control barge wasteoil discharges,all motorizedships will be Navigation administration and equippedwith oil-water separatorsto ensurethat oil contentin the navigationmonitoring departments dischargedbilge water does not exceed15 mg/l. Whereinstallation of suchdevices is not feasible,a wasteoil conlainerwill bekept on hand. Specialships will be equippedto collect wasteoil at regularintervals or by patrollingthe river.

2. Soil erosion Theconstruction site andsurrounding areas will be restoredas closely Constructionunit as possibleto their originalstate.

3. Ecology Surroundingfields subject to inundationcan be allowedto revert to GuigangEPB, HengxianEPB wetlandsin orderto mitigatepotential impacts to tortoiseand soft-shell turtle populations.Captured tortoise and soft-shell turtle speciescould thenbe relocated to theseshallow wetland areas as well as to tributaries which will beenlarged after submergence.

Thesewetlands areas will also providevaluable habitat for wadingand GuigangEPB. HengxianEPB aquatic birds displacedby submergencein the immediateproject vicinity.

A systemof spawninggrounds will be setup to providetortoises and GuigangEPB, HengxianEPB soft-shellturtles to the local populationin orderto decreasepressure on the wild populationsonce they are relocated.

In order to maintainhydrophyte populations, stagnation in the walter Guigang EPB, HengxianEPB body will be preventedby sustainingproper flow rates in the,dry season.

To mitigatelosses of economicallyvaluable fish stock,hatchery efforts GuigangEPB, HengxianEPB will be focusedon commercialspecies. EnvironmentalIssue Action Taken/ToBe Taken ResponsibleEntity Remawks

4. Cultural and historic Slopeprotection and reinforcement will beundertaken where necessary Operationunit sites to ensurethe stability of cultural and historic sitl3. Guangxi Province Cultural Relics Department 5. Relocationmanagement Thefullest possible use will bemade of localnatural resources in order Guigangand Aengxiancounties and economic to offset lossesof land causedby inundation,including upgrading development marginallands, reclaiming wastelands, planting orchards, expanding aquaculturein the reservoir,and giving agro-technicaltraining to the local populationto help themimprove the productivityof their lands.

Farmerswho losetheir landsdue to inundationwill becompensated. Guigangand Hlengxiancounties

6. Bankcollapse Surfaceprotection and slope reinrorcement measures will be adopted, Operationunit including afforestationand placementof engineeredrock slopesor wallsalong impacted banks. C. Environmental MonitoringPlan Monituring of constructionnoise will be conductedthree limes per Yulin EnvironmentalMonitoring I Environmental month,and on an adhoc basis as needed.There ate monitoring stations Station munitoringin in threelocations: at the baseof thedam, in the residentialarea and by construction phase the constructionroadside.

Air quality monitoringwill be conductedonce a month for two Yulin EnvironmentalMonitoring successivedays, four timeseach day. Moniloredilems include:SO 2, Slation NO, CO anddust. Tlere are five monitoringstations: one at the base of the dam,two in the residentialarea, one in the cementmixing am,a and onenear the constructionmaterials fact0ry.

Waterquality monitoring will beconducted once per quarter, two tifnes Yulin EnvironmentalMonitoring a day, at two locations:200 metersdownstream of the construction Station site, and500 metersupstream of Guigangwater intake. Eachlocation has 3 samplingpoints, with samplingat 3 depths. Monitoreditems includepH, SS, COD, BOD, DO, CrH', Cd, Pb, Zn, Cu, Hg, As, water lemperature,flouride, transparency,total hardness,turbidity, chromaticity,ammonia nitrogen, nitrate nitrogen, nitrite nitrogen,tolal phosphorus,phenol, total bacteriaand E. coli. EnvironmentalIssue Action Taken/To Be Taken Responsible Entity Renmarks

2. Environmental Water quality monitoringwill be conductedonce per quarter, two times Yulin Monitoring Station monitoring in a day in the following two locations: 200 melers downstreamfrom Operation unit post-construction Hengxian Sugar Factory wastewaterdischarge outlet, and immediately phase upstream of (he dam. Monitored items include pH, SS, COD, BOD, DO, Cr"', Cd. Pb, Zn, Cu, Hg, As, water temperature, fouride, transparency, total hardness, turbidity,chromaticity, amunonia nitrogen, nitrate nitrogen, nitrite nitrogcn, total phosphorus, phenol, total bacteria and E. coli.

Ecological monitoring will be conducted once a quarter in three Guigang EPB. Hengxian EPB locations: Hengzhou, the Guigang dam,and at the Wusijiang river, 3 km from its confluence with the Yujiang river. Monitored items includtl phyloplankton,zooplankton, benthon and aqualic plants.

Bank failure monitoring will be conducted as needed in areas where Guangxi Electrical Industry bank collapse may occur which have not been reinforced during Design Institute construction. Inundation monitoring will be conducted as needed in Guangxi Communications potentially inundated areas, includingresidential areas and agricultural Planning Design Institute lands. N ~~~~~~~~~~~~~~~~~~~~~~0

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