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SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

FUZHOU ENVIRONMENTAL IMPROVEMENT PROJECT

IN THE

PEOPLE'S REPUBLIC OF

June 2004

CURRENCY EQUIVALENTS (as of 14 May 2004)

Currency Unit – (CNY) CNY 1.00 = $0.21 $1.00 = CNY 8.27

ABBREVIATIONS

ADB – Asian Development Bank BOD – biochemical oxygen demand CODcr – chemical oxygen demand DO – dissolved oxygen EIA – environmental impact assessment EMP – evironmental management plan FMEPB – Municipal Environmental Protection Bureau FMG – Fuzhou Municipal Government FPEPB – Provincial Environmental Protection Bureau FUMP – Fuzhou Urban Masterplan FUVCDC – Fuzhou Urban Visual Construction and Development Company IA – implementing agency NOx – nitrogen oxides PMO – Project Management Office RP – Resettlement Plan SEIA – Summary Environmental Impact Assessment SS – suspended solids TSP – total suspended particles YLWWTP – Yangli Wastewater Treatment Plant Company WTP – water treatment plant WWTP – wastewater treatment plant Zn – zinc

WEIGHTS AND MEASURES dB – decibel ha – hectare kg/d – kilogram per day km – kilometer km2 – square kilometer m2 – square meter mg/kg2 – milligram per kilogram mm – millimeter m/sec – meter per second m3/day – cubic meter per day m3/sec – cubic meter per second mu – area, ha = 15mu, 1 mu=666.7m2 pH – factor of acidity

NOTES (i) The fiscal year (FY) of the Government coincides with the calendar year. (ii) In this report, "$" refers to US dollars. CONTENTS Page

MAP

I. INTRODUCTION 1

II. DESCRIPTION OF THE PROJECT 2 A. Component A: Yangli Phase 2 Sewer Networks 2 B. Component B: Lianban Sewer Networks 3 C. Component C: Inland River Rehabilitation 3 D. Component D: Capacity Building 3

III. DESCRIPTION OF THE ENVIRONMENT 4 A. Topography and Geology 4 B. Climate and Rainfall 5 C. Hydrology 5 D. Ecological Resources 5 E. Ambient Water Quality and Pollution 6 F. Economic and Social Conditions 8

IV. ALTERNATIVES 9 A. Within-Project and Without-Project 9 B. Alternative Receiving Water Bodies 9 C. Alternatives for Sewer Construction 9 D. Alternatives for Inland River Rehabilitation 9 E. Alternatives for River Sediment and Waste Soil Disposal 10 F. Alternatives for Wastewater Treatment 10

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 11 A. Impacts and Mitigation Measures during the Construction Phase 11 B. Resettlement 13 C. Impacts and Mitigation Measures during the Operation Phase 14

VI. ECONOMIC ASSESSMENT 15

VII. ENVIRONMENTAL MANAGEMENT PLAN 17 A. Environmental Management 17 B. Environmental Monitoring 18 C. Institutional Enhancement 19

VIII. PUBLIC INVOLVEMENT AND DISCLOSURE 19 A. Public Participation during Project Preparation 19

IX. CONCLUSIONS 20 A. Benefits 20 B. Potential Negative Impacts and Associated Mitigation Measures 21

APPENDIXES 1. References 2. Environmental Management Plan

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I. INTRODUCTION

1. Fuzhou, located in the delta, is a major cultural, commercial, industrial and financial center in Fujian . The Min River, an important waterway that passes through the urban heart of Fuzhou, is the city’s main water source for drinking water, irrigation and industrial use. While the economic growth in Fuzhou has averaged about 15% annually during the last two decades, urban environmental improvements have not kept up the same pace. The urban population has increased rapidly from 1.06 million in 1980 to 1.85 million in 2003, creating serious shortfalls in the level of service of all urban infrastructures, especially in wastewater collection and treatment. The large quantity of untreated wastewater discharged into receiving water bodies has caused significant deterioration of water quality in urban inland rivers, most of which are seriously polluted by organic, nitrogen, and phosphorus compounds. Inadequate wastewater management and drinking water resources protection result in poor public health and an unclean urban living environment, creating a risk to drinking water supplies, and negatively influencing economic development.

2. The Fuzhou 10th Five Year Plan and the Fuzhou Urban Master Plan (FUMP) (1995– 2010) are the blueprints for the economic and social development of Fuzhou. The Fuzhou Municipal Government's (FMG’s) goal is to achieve a 70% wastewater treatment rate and 90% sewer service coverage by 2010. The Fuzhou Urban Master Plan has particularly targeted two areas as the main focus for future urban development: (i) the Yangli area in the eastern part of Fuzhou city; and (ii) Nantai Island, which used to be an agricultural area located south of the north branch of the Min River. The shortfall in wastewater coverage, collection and treatment in these areas and the inadequate management of inland rivers at Nantai Island have severely restricted sustainable development in these areas and Fuzhou in general. Wastewater generated from these areas in particular is disposed of untreated or only partially treated and threatens the water quality of Min River, the drinking water source of Fuzhou and downstream communities. Frequent flooding in Nantai Island causes substantial damage to properties, loss of life and is a major health concern.

3. The ADB-funded Yangli Wastewater Treatment Plant (WWTP) Phase 11 with a capacity of 200,000 m3/day can only treat about 50% of the wastewater generated. There is urgent need to increase treatment capacities and expand the sewer networks to meet the growing demand of a fast growing urban population. In line with these needs and the FUMP, FMG is committed to construct, using municipal funds, the Yangli WWTP Phase 2 with an additional capacity of 100,000 m3/day. There is a need to increase wastewater service coverage for the population of the area, construct new sewers and rehabilitate those in need of repairs.

4. A similar deficiency in wastewater management exists on Nantai Island. To facilitate the planned urbanization of up to 84 km2 of land under the FUMP, there is a need to construct a new Lianban WWTP and a new sewer network, as well as rehabilitate existing sewers in need of repairs. In accordance, FMG is committed to the construction of the Lianban WWTP with an initial capacity of 150,000 m3/day, using private sector funds.2 There is a need to increase wastewater services coverage for the population of the area, construct new sewers and rehabilitate those in need of repairs.

1 ADB. 1998. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the People's Republic of China for the Fuzhou Water Supply and Wastewater Treatment Project. Manila. 2 Under the new provincial policy, all new WWTPs should be constructed through private sector investment.

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5. Nantai Island is served by a network of inland rivers that are extremely polluted, being classified worse than the lowest water quality of class V. The flow in these rivers is slow or stagnant and, as untreated wastewater is discharged into them, some are carrying grey or wastewater only and present a health concern. The existing flood handling capacity of Nantai Island Inland Rivers is very low, good for only one storm event per year. As a result, the area is frequently flooded with untreated wastewater, creating property damage and nuisance, and health concerns.

6. This summary environmental impact assessment (SEIA) of the Project was prepared in accordance with People's Republic of China (PRC) Environmental Impact Assessment Technical Guidelines and ADB Environmental Assessment Guidelines (May 2003) concurrently with the draft full environmental impact assessment (EIA) reports.

7. EIAs for the Yangli Phase 2 and Lianban Sewer Networks components were prepared by the Fujian Research Institute of Environmental Sciences (FRIES). EIA for Nantai Island Inland River Rehabilitation component was prepared by the Fuzhou Institute of Environmental Sciences. EIA Outlines for each component were submitted to and approved by the Fujian Provincial Environmental Protection Bureau (FPEPB) in July 2003. The EIA of the Nantai Island Inland River Rehabilitation was reviewed by the FPEPB in late February 2004. EIAs for the Sewer Networks components are currently undertaken by FRIES and will be submitted to the relevant agencies for review and approval. The SEIA including the environmental management plan (EMP) will be appropriately updated should the Government’s review of the Project EIAs identify further issues to be addressed.

8. Although Lianban WWTP and Yangli WWTP Phase 2 are not part of the ADB loan, they are closely related to the Project, thus the relevant project preparation of the two WWTPs has been conducted to closely coordinate with the Project.

II. DESCRIPTION OF THE PROJECT

9. The Project seeks to improve the urban environmental infrastructure of Fuzhou through construction and rehabilitation of sewer networks, rehabilitation of the inland river system, and strengthening of urban governance in water resource management. Specifically, the Project will (i) construct 271 kilometers (km) of new sewers and rehabilitate 47 km of existing sewers. These sewers will improve the urban environment for 1.85 million urban residents, and (ii) rehabilitate 13 inland rivers and improve the water quality to achieve the targeted Class V or better standards in the inland rivers and assure long term compliance of the Min River to water quality Class III.3

10. The Project has three components: (i) expansion of the Yangli Sewer Networks serving the eastern part of Fuzhou, (ii) construction of the Lianban Sewer Networks on Nantai Island on the southern part of Fuzhou, and (iii) rehabilitation of 13 inland rivers for pollution and flood control on Nantai Island.

A. Component A: Yangli Phase 2 Sewer Networks

11. Phase 1 sewer system covers approximately 29 square kilometers (km2) of service area. Yangli Phase 2 Sewer Networks will increase the current sewer capacity and serve an additional area of 24.2 km2. This component will construct 161 km of new sewers, rehabilitate

3 Class III water quality is required for surface water served as a raw water source for drinking. 3

39 km of the existing sewers and rehabilitate one pumping station. The trunk sewer capacity is designed for the 2020 planning horizon when the population served is expected to increase from 650,000 to 1,100,000. Upon completion, the sewer service coverage for the Yangli system will increase from the existing 60% to 90% in 2009.

B. Component B: Lianban Sewer Networks

12. Component B will serve the Lianban WWTP service area on Nantai Island, covering approximately 32 km2 of area with a foreseen population of 488,000 in 2007 and 710,000 in 2020, respectively. The component will construct 110 km of new sewers, rehabilitate 8 km of existing sewers, and construct three new pumping stations. Upon completion, sewer service coverage for the Lianban system will be increased from the existing 30 to 80% in 2009.

C. Component C: Nantai Island Inland River Rehabilitation

13. Component C will develop basic environmental infrastructure at Nantai Island necessary for sustainable urban development. The component will (i) rehabilitate 13 interconnected inland rivers with a total length of about 46 km through dredging and/or excavating approximately 2.2 million tons of earthwork, (ii) construct varying widths of stone-lined rectangular channels, and (iii) rehabilitate eight existing flood gates. This component will serve approximately 102 km2 of area and a population of 461,000 in 2005 and 670,000 in 2020.

D. Component D: Capacity Building

14. FMG has requested part of the loan proceeds be used for consulting services to support project implementation and training of the Implementing Agencies (IAs). Capacity building for the IAs will be achieved through consultant inputs, hands-on training, and domestic and overseas training.

15. Part of the loan funds will be used to support the development of a training center that will provide Fuzhou with a centralized training facility within the Lianban area that will also serve as a public awareness and education center. This center will be equipped with training facilities for operation and maintenance (O&M) staff on pre- and on-job training. The center will develop training programs for operations, O&M, financial management, and social and/or resettlement project issues and environmental monitoring.

16. A grant of $50,0004 will support a pilot and demonstration activity (PDA) that will promote a Clean River Program for the urban poor in Nantai Island to ensure community awareness and ownership of the Project. The objective of the program is to (i) improve public awareness on hygiene and sanitation among the urban households, particularly the poor and women; and (ii) promote active stakeholder participation in managing and maintaining the clean river program.

17. The proposed major features of the Project are presented in Table 1.

4 ADB. 2003. Technical Assistance for Promoting Effective Water Management Policies and Practices—Phase 3. Manila. 4

Table 1: Major Features of the Project Project Components Yangli Phase 2 Lianban Sewer Inland River Items Sewer Networks Networks Rehabilitation Service Area, km2 24 32 102 Design Flow, m3/day 100,000 150,000 For flood control 2005 Estimated Registered Population 330,000 337,000 405,000 Pipeline Length (new), km 161 110 Pipeline Length (rehabilitated), km 39 8 Number of Pump Stations 1 3 Inland River Length, km 46 Number of Flood Gates 8 km = kilometer, km2 = square kilometer, m3/day = cubic meter per day

III. DESCRIPTION OF THE ENVIRONMENT

18. Fuzhou is the capital city of Fujian Province, located on the southeast coast of the PRC. The city is located on the Min River about 40 km upstream from the Sea. Nantai Island is located in the south of Fuzhou.

A. Topography and Geology

19. Fuzhou is an estuary basin. Fuzhou city proper is located in the middle of the basin; the elevation varies from 600 to 1000 meters (m) above mean sea level. Inland is a flat and broad alluvial plain. The terrain of Fuzhou consists of hilly areas and low mountains, and is surrounded by hills and mountains on three sides. Hot spring water is generated within the basin. The soil is mostly red and crimson earth, backfill material, , and sand.

20. Nantai Island is characterized by hilly areas in the northwest and in the middle, and a broad alluvial plain in the southeast, sloping form northwest to the southeast. The plain area accounts for 35% of the island. The highest mountain, the Gaogai Mountain, in the center of island has an elevation of 202 m. The soil is mostly fine sand, silt and clay.

21. The natural inland waterways on Nantai Island were formed by the scouring of fluvial deposits by storm runoff, resulting in a maze of small drainage meanders and channels that are fragmented by an ineffective drainage system. Storm water runoff results in widespread flooding and the water in the inland rivers is polluted by untreated wastewater. The situation is exacerbated by the tidal locking of the existing outlets.

22. The regional geology is one of Mesozoic era volcanic rocks, with acid and medium-acid intrusive rocks from the late “Yannathan” stage during the period by Quaternary system alluvial, eluvial, and diluvial soils occur at the foot of the mountain ranges and in the valleys. The region is located in the middle section of a volcanic zone in the eastern part of Fujian Province, where the fracture structure is well developed. Strikes of the main fractures are all in a northerly direction. The north-northeast fracture is the major fault that controlled volcanic eruption in the later Mesozoic era and the orientation of the intrusive rocks of the Yanshan stage. However, it appears that most of the faults crossing the tunnel line belong to other orientations.

23. Although the region is characteristic of the uplift and down thrust of different blocks and active faults since the Cenozoic era, especially in the Quaternary period, the region has stabilized in recent times, but a slight uplift is still occurring. Earthquakes occur frequently in the 5

region as a whole; an event occurred in Fujian-Lianjiang in 1574 estimated at a magnitude of 5.7 on the Richter scale. Recorded epicenters are mostly outside the Project area.

B. Climate and Rainfall

24. The Project area is in the subtropical monsoon zone characterized by warm and humid weather. The average wind speed is 2.4 m/sec, and can reach 20 m/sec during seasons. The prevailing wind direction is southeast: northwest at dawn and changing to southeast in the afternoon. The annual average temperature is 19.6 degrees Celsius (oC). The warmest month’s average temperature is 28.7oC, and the coldest month’s average temperature is 7.7oC. The highest temperature recorded is 39.8oC, and the coldest is 2.4oC below zero. The average annual rainfall in Fuzhou is 1,303 millimeters (mm), while the highest recorded is 1,837 mm. The wettest months are May and June. The average annual relative is 77%, and the highest monthly relative humidity is 84%. The average annual barometric pressure is 101.2 kilo Pascal (kPa). The highest and lowest barometric pressures recorded are 103.4 kPa, and 97.8 kPa respectively.

C. Hydrology

25. The Min River is the largest river in Fuzhou, and traverses Fuzhou from the northwest to southeast, with a total length of approximately 150 km. The main trunk of Min River is divided into northern and southern branches at Huaian by Nantai Island. The Min River has an annual average flow of 1,713 m3/sec and 55.1 billion m3/year. It is the most important water source, the primary receiving water body for wastewater, and the major navigation channel for Fuzhou City.

26. Fuzhou has very complicated waterways in the , consisting of over 70 inland rivers including the Guangming Gang, ’an, Baima, and Antai rivers, with a total length of 99.3 km on the north bank of Min River. Except for a few rivers such as the Jin’an River, most of these inland rivers are small with a limited local catchment area. These inland rivers connect with Min River and are subject to the tidal influence of Min River. All inland rivers are equipped with flood control gates along the rivers. Flood control is the primary function of these inland rivers. The inland rivers within the northern bank of Min River in the city proper utilize the flow augmentation from Min River to flush their stagnant water at a flow rate of about 30 m3/sec.

27. Fuzhou has abundant groundwater in shallow aquifers of approximately 1.086 billion m3, most of which can meet potable mineral water standards. Fuzhou has rich underground heat resources and the average temperature of the thermal water is 720C. The groundwater pH is 7 or slightly higher. The urban area with exploitable underground heat is about 5.0 km2, with an estimated total water volume of about 9,800 m3. There are currently 79 hot spring wells.

D. Ecological Resources

28. Fuzhou is located in a subtropical zone with a warm climate and abundant rainfall. Biological resources are rich and diverse. Native vegetation has been damaged by human activities, and currently secondary and planted vegetation forms a relatively simple biota structure. There are no large wild animals inhabiting the Project area; most of the wild animals are mice. Fisheries are mostly freshwater fish with a total production of approximately 47,560 tons/year. Table 2 summarizes the major biota and agricultural resources in the Project area. 6

Table 2: Biota and Agricultural Resources in the Project Area Category Type Major Species Banyan, masson pine, camellia, bamboo, camphor Plant Trees tree, fir (over 1,000 species) Aquatic plants Algae Fish Carp, crucian carp, silver carp Animal Bird Sparrow, swallow (over 140 species) Aquatic life Shrimp, rotifer Livestock and poultry Pigs, cows, chicken, ducks Major crops , , soybean Agricultural Resources crops , flowers, vegetables, medicinal herbs Fruits Loquat, orange,

29. There are two small wetlands in eastern Nantai Island that are major bird habitat areas. In Fuzhou, the species under national/provincial protection include ginkgo, metasequoia, fir, Chinese pine, swallow, frog, snake, and gecko).

30. There are no forests (secondary or native), natural reserves, rare or endangered species in the Project area.

E. Ambient Water Quality and Pollution

31. Min River is the ultimate receiving water body of all the inland rivers. As Min River has a large runoff flow and a substantial dilution and self-purifying capacity, the water quality in its main waterway so far has maintained at better than Class III. However, due to large amounts of wastewater discharged along Min River over the years, both from inland rivers and untreated wastewater discharges, a significant near shore pollution belt has been observed in the Min River Fuzhou urban section, posing a threat to water quality and the ecological system of the River, and to the city’s water supply. One of the objectives of the project is to eliminate the near shore pollution belt and to minimize its adverse impacts.

32. About 25% of the total wastewater generated in the city is industrial. The major industries in Fuzhou include machinery, metallurgy, electronics, food, textile, pharmaceutical, fertilizer and high-tech. The industrial wastewater generated is pretreated prior to being discharged to the surface water or the municipal sewers. All industrial wastewater dischargers are regulated under the Industrial Pretreatment Program with discharge permits. The composition and percentage of the industrial wastewater is expected to stay the same throughout the planning horizon of 2020.

33. The water quality of the receiving water bodies and major pollution sources in the Project area is listed in Table 3.

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Table 3: Water Quality of Receiving Water Bodies Receiving Ambient Water Quality Project Water After Component Bodiesa Requirementsb Existing the Major Pollution Sources Project

Yangli Phase 2 Inland Class Vc Worse Class V Domestic and industrial Networks rivers within or wastewater (shipyard, pulp, urban area better and paper, chemical and plastic products, food and beverages, hardware, electronics and electrical goods, pharmaceuticals, and machinery)

Lianbian Before Class V Worse Class V Domestic and industrial Sewer Project: than or wastewater (shipyard, Networks Inland Class V better metallurgical, food, machinery rivers within and chemical) urban area After Class IIId Class III Class III Project: Min unstable stable River

Nantai Island Inland Class V or Worse Class V Domestic and industrial Indland River rivers better than or wastewater (shipyard, Rehabilitation Class V better chemical products, textiles, power, chemicals, machinery and building materials)

Ultimate Min River Class III Class III Class III Direct and/or indirect sources Receiving unstable stable Water Bodyd BOD = biochemical oxygen demand, COD = chemical oxygen demand, DO = dissolved oxygen, mg/l = milligrams per liter, N = nitgrogen, P = phosphorus, SS = suspended solids. a Yangli and Lianban sewers will send the collected wastewater to Yangli and Lianban wastewater treatment plants, respectively, for treatment before discharge to the receiving waters. Both plants will be constructed concurrently under different project funds. b PRC water quality classes (GB3838-2002) are I to V, of which classes I and II are pristine and can be used as a source for potable water and Class V is the worst. Major indicators, for Class III, mg/l: COD—20; BOD5—4, Oil— 0.05, Total N—210, Total P—0.2 and DO—5.0; for Class V, mg/l: COD—40; BOD5—10, Oil—1.0, Total N—2.0, Total P—0.4 and DO—2.0. c Municipal effluent discharge standards (level 2) for discharging to class IV or V receiving water are: pH—6–9, SS— 30, BOD5—30, COD—120. d Municipal effluent discharge standards (level 1) for discharging to class III receiving water are: pH—6–9, SS—20, BOD5—20, COD—60.

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F. Economic and Social Conditions

34. As the capital of Fujian Province, Fuzhou is one of the more important cities in southeast China, and is the Province’s main political, economic, trading, information and cultural center. The major industries in Fuzhou include machinery, metallurgy, electronics, food processing, textiles, pharmaceutical and high-tech. The of the Fuzhou municipality in 2001 was CNY 107 billion, approximately CNY 18,039 per capita. The ratio of primary, secondary and tertiary industries in Fuzhou was 12.3 : 47.1 : 40.6 in 2001.

35. Social and cultural resources in Fuzhou City are summarized in Table 4.

Table 4: Major Social and Cultural Resources

Item Value Urban Population 5.94 (million)

Population in Urban Total: 1.54 Area (million) Female: 0.75

Fuzhou 5 districts: Cangshan, Gulou, Jin’an, Mawei, Taijiang Administrative Area 6 counties: Lianjiang, Luoyuan, Minhou, Minqing, Pingtan, Yongtai 2 cities: Changle,

City proper: Cangshan, Gulou, Jin’an, , Taijiang

Township and 49 towns with 686 communities or villages Village

Nantai Island Subordinate to Cangshan , covering an area of 142 km2, having a population of 352,000

Land Area (km2) Entire city: 11,968 Urban area: 1,043

Medical Facilities 85 hospitals accommodating 9,994 patients

Cultural Facilities 7 public libraries, 10 museums, and 7 cultural centers

Educational 14 universities and/or colleges (88,714 students), 81 middle schools (88,825 Facilities students), 257 primary schools, 396 kindergartens, 11 social education school (52,272 students)

Ethnic Groups 37 ethnic groups, ethnic minorities accounts for 1.1% of the total population; no indigenous people

Scenic Spots Over 40, one in the national list

Historical and Over 100 cultural and/or historic relics, of which 2 under national protection, Tourism 44 under provincial protection Statistical numbers at end of 2001.

36. The project will not interfere with any historic or cultural sites. 9

IV. ALTERNATIVES

A. With Project and Without Project

37. Direct benefits from the project implementation include expanding wastewater collection in the Yangli and Lianban areas and increasing the flood handling capability of the inland rivers in Nantai Island from one storm event per year to five storm events per year. The Project will improve and protect the water quality in Min River, Fuzhou’s drinking water source, improve the urban environment and public health in the project areas, promote the sustainable urban development of Nantai Island, and promote local economy and tourism. Without this Project, large amounts of wastewater would be continuously discharged untreated into the Fuzhou inland rivers and Min River, resulting in their severe pollution. Flooding and water-logging would continue during storm season due to extremely poor flood control and drainage capabilities. Direct discharge of untreated wastewater into Min River, Fuzhou’s major drinking water source, would continue with consequent adverse impacts on public health.

B. Alternative Receiving Water Bodies

38. The same outfall is used for the effluent of both Yangli WWTP Phase 2 and Phase 1, as designed during Phase 1.

39. Two alternative receiving water bodies, Linpu Inland River and the northern branch of Min River, were evaluated for receiving the effluent of Lianban WWTP. Based on the water quality model developed in the preparation of the project components’ EIAs, direct discharge to the northern branch of the Min River was recommended. The Min River is the ultimate receiving water body of all the inland rivers according to national standards.

C. Alternatives for Sewer Construction

40. The majority of sewer alignments for the Yangli service area was selected during the design of Yangli WWTP Phase 1 and was reviewed with minor modification for Phase 2. Alternative sewer routes were evaluated for the Lianban service area considering topography and geological conditions, construction methods, and associated resettlement. Costs, environmental impacts, social impacts during construction, ease of O&M, connection to the WWTP, coordination with the inland river rehabilitation, and minimizing river crossings were considered during the project evaluation. The selected alignments are mostly located along the main roads, considering lower costs, minimization of possible adverse environmental impacts, the scope of demolition and river crossings, and the ease of construction and management.

41. A separate sewer system was originally suggested. However, most of the old urban districts in Fuzhou are served by a combined sewer system and converting it into separate systems would be prohibitively expensive. In view of that, the project supports the combined system.

D. Alternatives for Inland River Rehabilitation

42. Two alternatives, i.e. 31 inland rivers vs. 13 inland rivers, were evaluated for inland river rehabilitation considering the layout of waterways, routing, embankment, and nature of the rivers. The project proposal for 13 inland rivers has been selected on the basis of urgent needs for water quality upgrade, flood control improvements, comprehensive wastewater management, and correspondence to the urban development plans in Lianban.Costs, the scale 10 of construction, potential for flow augmentation and flood control, and environmental sustainability during operations, as well as minimizing adverse environmental impacts and resettlement requirements were considered in the evaluation. Alternative rehabilitation methods were analyzed and the optimum schemes selected. In line with this analysis the Project will support the straightening of inland rivers and the building of combined embankments (rectangular lower earth section and trapezoid upper stone-lined section). In order to achieve the desired results, the final design and construction should be done in close coordination with the associated sewer networks rehabilitation project component.

43. The advantages and disadvantages of flow augmentation were analyzed, including flow diversion routes, augmented flow rates, potential impacts on Min River and improvement of inland river water quality. The analysis indicated a direct benefit from flow augmentation. Flow augmentation from the southern branch and diversion to the northern branch is proposed as: (i) the southern branch has the higher water level, (ii) the existing flood control pump stations could be used, (iii) several water intakes are located downstream of the southern branch, (iv) it offers greater environmental benefits, and (v) it only should have lower operational costs. An optimum total water augmentation of 18 m3/sec is recommended based on the inland rivers water quality and flood control targets, considering tidal influence, runoff flow, and hydraulic conditions. Special attention was paid to the potential impacts of the flow augmentation scheme on Min River. According to the water quality model, with Min River’s average annual flow of 1,713 m3/sec, flow augmentation will have negligible adverse impacts. The combined positive effects of the Nantai Island Sewer and the Inland River Rehabilitation project components will result in Min River quality achieving a stable class III (suitable for water drinking purposes), thus safeguarding the source of Fuzhou’s drinking water supply.

E. Alternatives for River Sediment and Waste Soil Disposal

44. The sludge and/or silt that will be generated under the Project consists of dredged/de- silted material from inland river works and sewer rehabilitation.5 Several alternatives were considered based on the type of river and sewer sediment, including land filling and agricultural reuse. As sample tests indicated that most of the dredged and/or excavated materials meets the agricultural re-use requirements, agricultural reuse was preferred. Regarding wasted soil from the construction activities, several alternatives including land filling, backfilling and other uses were considered. Transport distance, environmental impacts, and costs were included in the assessment. On the basis of sample trials that showed no adverse environmental impacts landscaping was recommended.

F. Alternatives for Wastewater Treatment

45. Although Lianban WWTP and Yangli WWTP Phase 2 are not part of the ADB loan, they are closely related to the Project, and due diligence has been conducted to closely coordinate activities related to the WWTPs with the Project. The technical evaluation and environmental assessment performed in preparation of the FUMP has identified the WWTPs sites and their treatment processes. Yangli WWTP Phase 2 will be constructed in a reserved area, assessed during the Phase 1, within the existing plant. Mostly farmland and villages surround the proposed site for the Lianban WWTP. It will occupy an area of 55 ha, currently used as farmland and pre-selected and preserved under the Fuzhou Urban Master Plan. The Chengtoushan reforestation zone, located east of the WWTP site, and the Linpu historic and cultural reserve area to the north will not be affected by the WWTP’s construction and operations. The

5 Dewatered sludge from two WWTPs associated with the Project will be hauled to the designated sanitary landfill. 11

wastewater treatment processes in both WWTPs will follow conventional secondary treatment technology.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Impacts and Mitigation Measures during the Construction Phase

46. A large amount of dredged sediment and excavated soil will be generated from the inland rivers and sewer networks rehabilitation. The dredged materials and excavated soil are estimated to be approximately 400,000 m3 and 2,000,000 m3, respectively. These sediments were initially sampled and analyzed and found to be suitable for agricultural use based on relevant PRC standards. Non-compliant wasted sediment will be transported to sanitary landfills for final disposal. The sediments will be sampled and analyzed prior to inland river rehabilitation. Proper transport, handling and disposal of the dredged materials will be specified in the contracts, with close inspection during the construction stage. The suitable excavated soil will be used for forestations. The following measures are required during construction to reduce potential adverse impacts: (i) temporary retaining walls for sediment storage, and (ii) sites filled with excavated soils will be graded and compacted properly. The small amount of dredged sediment not suitable for reuse will be transported to sanitary landfills for final disposal. The transportation vehicles will be enclosed to prevent dust spread and water leakages. Transportation vehicles will be operated during night-time and off-peak hours to avoid peak traffic. With proper vehicle operation control, adverse impacts on the environment and traffic by the transportation will be minimal.

47. Dredging activities during the initial stage of the inland river rehabilitation will result in short-term adverse impacts on inland water quality with increasing suspended solids (SS), chemical oxygen demand (COD) and biochemical oxygen demand (BOD5) concentrations. In order to prevent potential adverse impacts on water intakes and the Min River, rehabilitation of the inland rivers will be conducted section by section and each section under construction will be isolated from other waterways.

48. Construction of the Project will require heavy machinery and vehicles. Construction activities will produce short-term air pollution, muddy runoff, safety hazards, sewage and human waste, debris, spoils, and traffic congestion. Environmental protection measures in connection with the construction activities are required as part of the construction contracts. Environmental friendly practices such as dust control, provision of storm water runoff detention ponds, controlled disposal of spoiled materials, and car/truck wheels washing before leaving the construction site are necessary measures to be specified in the construction contracts.

49. Most of the noise generated during construction is that of the large earth-moving equipment including excavators, transportation vehicles and other heavy construction machineries. Generally, construction noise exceeding 70 dB has significant impacts on surrounding sensitive receptors within 50 m of the construction site. For all three project components, there are residents living within 100 m of a construction site and the noise impact will be significant. Therefore, the noise level shall meet the required standards within 50 m of a construction site during the day and within 100 m of a site at night. Major mitigation measures include: (i) no construction at night (from 22:00 pm to 6:00 am) using heavy machinery near residential areas, (ii) no discretionary use of noisy machinery, (iii) good maintenance and proper operation of construction machinery, (iv) installation of temporary sound barriers if necessary, and (v) avoiding large vehicles transport routes through residential areas. 12

50. Mitigation measures to minimize dust generation during construction include: (i) enclosure of demolition sites, (ii) spraying dusty roads with water, (iii) maintaining moisture on construction materials, (iv) covering transportation vehicles, enforcing speed control, and selecting transportation routes to minimize impact on sensitive receptors, (v) covering or spraying exposed soil or storage areas, and (vi) minimizing on-site construction material storage time.

51. All vehicles and construction machineries shall be operated in compliance with the relevant vehicle emission standards and with proper maintenance to minimize air pollution.

52. To minimize the impact of the sewage generated during construction, interim sewers shall be installed to convey the sewage to nearby sewers, or install temporary tanks to hold and discharge the sewage to adjacent sewers. To prevent muddy runoff and soil during storm seasons, retaining walls and intercept ditches shall be built in construction areas to divert the muddy runoff into the storm water detention ponds for sedimentation prior to discharging to storm water drains.

53. Refuse generated by construction workers, construction debris, and other solid wastes could have adverse impacts on the surrounding environment. The most practical and effective mitigation measure is timely clean-up. All on-site refuse will be stored in closed containers before disposal at landfill site.

54. Traffic congestion, air pollution, inconvenience to pedestrians and shop owners, and impact on urban amenities are potential problems during construction. Mitigation measures will include constructing interim roads, selecting transport routes to reduce disturbance to regular traffic, diverting traffic at peak traffic hours, repairing the damaged roads shortly after the construction. Proper interim traffic arrangement will be one of the major scopes for construction management.

55. Construction areas for inland rivers, sewer networks and WWTPs are not within forest, grassland, wetland, designated natural reserves, or scenic spots. There are no important historical and cultural relics, and no rare or endangered species within the Project area.

56. Construction will result in removal or relocation of trees and vegetation along or within the construction sites. These impacts are temporary and original vegetation will be recovered or replanted after construction. A 30-m wide green belt will be planted along the inland rivers after their rehabilitation. To avoid potential damage to the trunk sewers and embankment, some trees will not be replanted at their original locations after construction.

57. Some inland rivers are adjacent to farmlands and the construction activities will have short-term adverse impacts on the surrounding crops. Mitigation measures shall include construction of containment for controlling muddy runoff and .

58. Construction activities will possibly interfere with the existing utilities, e.g. water, storm water drains, gas pipelines, telecommunication cables, and power cables, etc., and will result in temporary suspensions of the services. Avoidance of and/or clearance with other utilities will be carefully coordinated during the design and construction stages of the Project. Emergency measures including response plans shall be in place to minimize potential adverse impacts.

59. Construction of sewer networks will involve river crossings and urban road excavation. Coordination shall be carried out prior to design and construction to avoid adverse impact. 13

Construction activities shall be properly planned to avoid unnecessary crossings under buildings, inland rivers, railways, and important roads. Emergency measures shall be developed prior to construction to reduce potential adverse impacts and safety hazards.

60. Civil work contract specifications shall include relevant sections of the EMP. The contractor will be responsible for the implementation of the EMP, including mitigation measures. The environmental reports as required in the EMP and specified in the EIA, including monitoring results and any non-compliance will be submitted to the relevant government agencies and Asian Development Bank (ADB) for review during project implementation.

B. Resettlement

61. Impacts related to resettlement (physical and economic displacement) include: (i) people affected by the acquisition of land for inland river rehabilitation; (ii) people affected by the temporary use of land for the sewer constructions and pump stations; and (iii) people whose livelihood is impacted during construction activities. All project components were planned to minimize disruption of residential areas and villages and maintain village cohesion.

62. The Project will require the permanent acquisition of 74.81 hectares (ha) of land, the temporary acquisition of 8.17 ha of land, the demolishment of a 197,229 square meters (m2) private house, 10,220 m2 public houses/buildings and 44,198 m2 industrial and commercial houses/buildings. In total, 666 households or 3,610 people would be permanently affected by land acquisition and 1,148 households or 5,045 people by house demolishment. In addition, 81 enterprises and 14 shops will also be affected. No indigenous people or ethnic minorities will be adversely affected by the Project.

63. The total cost for both land acquisition and resettlement is estimated to be CNY 400.86 million or $48.47 million.6 Resettlement impacts have been identified and resettlement plans (RPs) prepared in accordance with PRC land law and ADB Policy on Involuntary Resettlement. The RPs provides a socioeconomic profile of affected persons (APs) and scope of impacts and addresses issues related to entitlements of APs compensation, legal framework, public consultations, grievance procedures, environmental protection, rehabilitation measures, and budget and implementation milestones. Resettlement requirements have been carefully considered and incorporated into project design.

64. FMG will implement ADB’s full disclosure policy for the resettlement activities, including: (i) Summary Resettlement Plan to be attached to the SEIA; (ii) distribution of the Resettlement Information Booklet to the APs and Village Offices; and, (iii) posting of the full RP in Chinese and English at Village Offices and Resident Committees, and on the ADB website upon its approval/endorsement from FMG. The project management office (PMO) will establish a specific Project Resettlement Office to continue public information activities and respond to any questions or grievances.

65. All APs are compensated and resettled in a timely and adequate manner in accordance with the RP so that they will be at least as well off as they would have been without the Project. To ensure that APs have been adequately compensated and rehabilitated, the FMG, through the Project Executing Agency (EA) and the IAs, will keep the ADB informed of the progress of implementation of the RPs through the quarterly progress reports until the resettlement is completed and will prepare a resettlement completion report. The EA and IAs will engage an

6 The cost will be subject to revision once the final resettlement plans (RPs) are endorsed by FMG. 14 independent agency for semi-annual monitoring and annual evaluation of land acquisition and resettlement until two years after the land acquisition, resettlement implementation and completion of resettlement.

C. Impacts and Mitigation Measures during the Operation Phase

66. During the operation phase, sewers and wastewater pumping stations are potential sources of foul odors that can be a nuisance to the neighboring community. Mitigation measures to minimize the potential odor problem will include: (i) isolation of the operational zone, (ii) enclosing of potential sources, (iii) provision of odor scrubbing facilities, and (iv) timely transport of the sludge dredged out of the sewers during sewer maintenance and the trash collected in the pumping station screening facilities in closed bags to sanitary landfills for final disposal. Thus, the anticipated adverse impacts will be minimal.

67. Wastewater collected in the sewer networks will be conveyed to Lianban and Yangli WWTPs for treatment before being discharged into the Min River. The treated effluent of the two proposed WWTPs is designed to meet discharge requirements for improving Min River water quality.

68. Corrosive and toxic gases and liquids may accumulate in long-distance sewers and result in sewer structural damage and leakage from the sewers, as well as danger to human life. Mitigation measures shall include: (i) inspection and control of facilities at potential sources, such as spills and leakage from underground storage tanks at gasoline stations, to prevent entry into the sewer system; (ii) reasonable spacing between manholes to allow access and inspections; (iii) ventilation of sewers for dispersion of gas to minimize the risks; and (iv) implementing emergency response plans by the IAs through coordination with associated city agencies.

69. WWTPs will use the treatment processes successfully used in similar conditions. The risks of low strength wastewater causing potential operational problems have been addressed through the possible inclusion of primary treatment and other technical features incorporated into the design.

70. FMG will ensure that the IAs have financial and managerial autonomy to operate the project facilities and allowing them to fully discharge their environmental management responsibilities.

71. FMG and IAs will ensure that any adverse environmental impacts arising from the project are minimized by implementing the mitigation measures, including the EMP presented in the EIAs and SEIA.

72. Flow in the inland rivers will decrease significantly upon completion of rehabilitation after new sewers intercepting untreated wastewater discharges into the inland rivers. Flow augmentation with the help of pumping stations and/or flood gates at inland river estuaries is needed to replenish inland river flow. FMG will construct respective pumping stations or floodgates starting from early 2004, to be completed in December 2006.

73. Noise from operation of the pumping stations will lead to adverse impacts on the surrounding areas. Mitigation measures shall include: (i) use of low noise machines, (ii) indoor installation of high noise equipment, (iii) installation of noise enclosures or buffers, (iv) semi- underground setting of pump stations, and (v) possible use of submersible pumps. 15

74. Water-logging may occur in case of pumps and/or flood gates failure at inland river estuaries and result in adverse impacts particularly during heavy storms. Preventive measures will include (i) installing standby equipment to provide extra capacity, (ii) performing routine maintenance to increase equipment performance, (iii) using a dual power supply system and emergency power generators for major equipment, (iv) implementing a proper maintenance program for major equipment, and (v) enhancing operational monitoring.

75. Upon completion of inland river rehabilitation a detailed operational procedures for augmentation including operations of floodgates will be developed during the project implementation to maintain water quality and flood control.

VI. ECONOMIC ASSESSMENT

76. The Project is estimated to cost about $182.6 million, comprising $64.4 million foreign exchange costs and $118.2 million local currency cost. A summary of the Project cost estimates is given in Table 5.

Table 5: Cost Estimates ($ million) Item Foreign Local Total Cost Exchange Currency I. Project Components

15.9 19.8 35.7 A. Yangli Sewer Networks B. Lianban Sewer Networks 16.3 18.8 35.2 C. Inland River Rehabilitation 18.1 59.9 78.0 D. Capacity Building 1.8 1.8

Base Costs 52.1 98.5 150.6

II. Contingencies 1. Physical Contingencies 5.3 9.9 15.1 2. Price Contingencies 2.3 4.3 6.7 Subtotal 7.6 14.2 21.8

C. Financial Charges

1. Interest and other charges during 4.8 5.5 10.3 construction (IDC)

Total 64.4 118.2 182.6 IDC = interest during construction

77. The economic analysis provides a rationale and justification of the proposed Project based on policy, sector and local area analysis. It considers the Project, not as a stand-alone investment, but as an integrated part of ongoing city, municipal and basin-wide environmental programs. This method is based on ADB’s Economic Issues in the Design and Analysis of a 16

Wastewater Treatment Project,7 which recommends an approach to economic analysis that is more appropriate than standards cost benefit analysis (CBA). The basic concept is that if standards and targets for ambient water quality appear well-founded, reasonable and are, in part, driven by social choice, as long as mechanisms for monitoring and enforcement are in place then the economic approach to meeting those targets is one of least cost.

78. PRC environmental policy adopts a cost-effective approach to pollution control and wastewater management through specific treatment rate targets and required water quality standards for water bodies. Major point source polluters were targeted by the Government in the previous years first followed by major centers of population, the current focus. Recent guidelines from the Ministry of Construction (MOC)8 set more stringent targets than the 10th Five Year Plan such as that major cities, including Fuzhou, should have a wastewater treatment rate of 70% by 2010. The Min River Basin Plan9 sets out the water quality requirement for the Fuzhou stretch of the Min River to be Class III. As part of a national program to expedite wastewater management plans, a target city treatment rate of 70% seems reasonable. The Class III requirement for the Min River, as the source of the city’s water supply, is in line with PRC requirements for potable water sources established and enforced by State Environmental Protection Administration (SEPA) and also seems reasonable.

79. The FUMP identifies the environmental problems associated with such rapid growth. The environmental protection of water resources and the Min River in particular is considered very high priority. Evidence demonstrates that many of the priority actions have already been taken. Plans for sewer networks systems and WWTPs are further detailed and updated in the Fuzhou Wastewater Master Plan.10

80. In addition to effective and appropriate prioritization, the design of the sewer networks systems and the inland river rehabilitation program considered capital and operational cost as well as technical and implementation considerations in order to provide the most cost effective solution. The design of the systems has (i) limited resettlement where possible; (ii) minimized pumping in order to lower the operational costs; and (iii) optimized sewer layouts for least costs and minimum disruption, while allowing maximum flexibility for future expansion.

81. The overall public health and environmental benefits of wastewater collection and treatment are well established and the 1.85 million urban residents, businesses and visitors to the city will be direct beneficiaries. In addition, the Project will (i) protect the drinking water source of the city by ensuring that the Min River is Class III water quality or above, (ii) provide the necessary sewer networks systems for planned WWTPs, (iii) improve the living environment in existing areas, and (iv) remove an identified constraint to growth, facilitate further expansion and lever private sector investment through supporting Lianbian wastewater management.

82. The analysis shows that the established plans are a reasonable approach to (i) managing environmental protection and ambient water quality, and (ii) planning for sustainable urban development. The Project is a critical component of those established plans and furthermore represents a cost effective approach to achieving incremental improvements in environmental quality.

7 ADB. Economics and Research Department Technical Note Series Number 4. Manila. 8 Urban Wastewater Treatment and Control Technology Advice. 2000. Ministry of Construction. 9 Min River Basin Plan 1990. Fujian Provincial Environmental Protection Bureau. 10 Special Wastewater Plan of Fuzhou City to 2020, December 2002, approved by the State Council but only to 2010. 17

VII. ENVIRONMENTAL MANAGEMENT PLAN

A. Environmental Management

83. The EMP covers all phases of the Project from pre-construction through commissioning and operation, and aims to ensure the monitoring of environmental impacts and the implementation of environmental mitigation measures. The EMP of the Project is detailed in Appendix 2 and discussions are presented in related sections of EIAs. The EMP will be incorporated into the construction and operation management plans of the Project.

84. The EMP will ensure effective implementation of various identified mitigation measures. During project preparation and implementation, various organizations with different environmental management responsibilities, FPEPB, PMO, Fuzhou Municipal Environmental Protection Bureau (FMEPB), Yangli Wastewater Treatment Plant Company (YLWWTP), Fuzhou Urban Visual Construction and Development Company (FUVCDC) (the IAs), design institutes, and contractors, have been involved and will be involved in the EMP. PMO and the IAs, each will nominate dedicated, trained and qualified environmental specialists to undertake environmental management activities and ensure effective implementation of the EMP. Table A2.4 of the EMP shows the environmental responsibilities in different phases of the Project. Costs of the EMP mitigation measures will be included in the project contracts and municipal and private budgets during operations. The mitigation measures of potential impacts of the Project, as well as responsibilities, authorities, and corresponding cost estimates are presented in Table A2.1 of the EMP.

85. Plans for public involvement during the design, construction and operation phases have been developed based on the two public consultation meetings conducted in 2003 during the project preparation stage. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages; (ii) evaluating environmental, economic benefits and social impacts; and (iii) interviewing the public after the Project is completed. These plans will include several types of public involvement, e.g. site visits, workshops, investigation on specific issues, interviews, and press conferences. Table A2.3 of the EMP shows the detailed Public Participation Plan to be performed under this project.

86. The PMO will ensure that project’s progress and impacts are monitored and reported in line with ADB requirements. The PMO, assisted by the Consultants, will monitor and assess overall project activities under PPMS including environmental targets and will submit to ADB the EMP progress reports and information including project implementation, and environmental performance of the contractors, IAs and environmental project management consultants. These reports will include (i) semi-annual progress reports on project implementation; (ii) annual reports; and (iii) a project completion report no later than 3 months after completion of the Project. The progress reports will emphasize progress made in the areas of water quality improvements, monitoring results, implementation of mitigation measures, environmental compliance, training and capacity building progress.

87. Effectiveness of mitigation measures and monitoring plans will be evaluated through a feedback reporting system. The adjustment of measures required by the EMP will be performed, if necessary. FMEPB and PMO play critical roles in this feedback and adjustment mechanism as shown in Figure A2 of the EMP.

88. During construction and operation, sufficient budget will be allocated for environmental protection measures. Allocated costs for environmental improvements during construction will 18 be 1% of the total investment, and 7% during operation. Most of this expenditure is related to the activities of environmental monitoring and appropriate operation of equipment and/or facilities. Detailed requirements are included in the EMP.

B. Environmental Monitoring

89. Environmental monitoring programs will be carried out and the results will be used to evaluate the: (i) extent and severity of environmental impacts as compared to 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 project EMP.

90. During the construction and operation, the Environmental Monitoring Department (EMD) of FMEPB will be responsible for environmental monitoring in the Project area. The EMD has qualified staff with monitoring equipment and technical capability for monitoring of the aquatic, air, and physical environment (noise and vibration), sediment, soil and solid waste, and traffic conditions. When complaints are received from the public, the monitoring staff will conduct immediate unscheduled inspections. The Department of Laboratories of FMEPB is appropriately certified assuring accuracy of the analytical results and their legal standing.

91. In addition, industrial wastewater discharges are monitored at least twice a year by the FMEPB. A comprehensive monitoring program with a higher frequency will be designed into the WWTP design.

92. Besides monitoring programs conducted by the IAs and the compliance monitoring by EMD and monitoring programs conducted by the IAs, detailed internal environmental monitoring programs during the construction and operation phases with higher monitoring frequency are required. These monitoring programs and budgets will be included in the construction and operation contracts. At the beginning of the Project, PMO, IAs and the Consultants, will develop comprehensive Project Performance Monitoring System (PPMS) procedures to systematically generate data on inputs and outputs of the project components and the agreed environmental and related social economic indicators to be used to measure project impacts. The PMO and IAs 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.

93. Results from the environmental monitoring for both construction and operation phases will be submitted by the contractors and operators to the FMEPB, PMO and IAs on a, monthly basis. FMEPB, and/or ADB may request that further actions to be taken for environmental mitigations, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

94. Environmental monitoring costs are included in the Table A2.2 of the EMP, to be included in the project contracts, and counterpart budgets. Before implementing the monitoring plan, responsible agencies will present a further detailed breakdown of the estimated budget. During the project implementation, the costs required can be adjusted based on actual requirements. FMEPB will ensure monitoring budget is available for its EMD. Similarly, the IAs will include required budgets in the operation and management contracts.

19

C. Institutional Enhancement

95. The IA of both Sewer Networks Projects is YLWWTP, found capable of quality management of WWTPs, however, FMG will further ensure that YLWWTP will have financial and managerial autonomy to operate the project facilities. YLWWTP will benefit from further training provided by the project (Table A2.5).

96. The IA of Nantai Island Inland River Rehabilitation component is FUVCDC, which is affiliated with the Fuzhou Urban Regulatory Management Bureau. In order to further build FUVCDC’s staff capacity for project implementation, it has developed training programs and will incorporate these activities into the construction and operation management plans.

97. In accordance with the EMP, IAs will establish environmental management offices within their project management departments. During the project, these offices will be responsible for: (i) overseeing the implementation of the EMP and developing its implementation details, (ii) incorporating environmental management, monitoring, and mitigation measures into the construction and operation management plans, (iii) developing and implementing internal routine environmental monitoring, (iv) supervising implementation of mitigation measures during construction and operations; (v) implementation of training programs, (vi) reporting the EMP to the responsible agencies. Each IA will have two environmental specialists and the PMO will have one environmental specialist.

98. The environmental specialists of FMEPB, PMO and IAs will receive training in environmental management, 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 O&M budgets.

VIII. PUBLIC INVOLVEMENT AND DISCLOSURE

A. Public Participation during Project Preparation

99. Direct public participation was conducted on an on-going basis in the development of the Project. These activities were carried out by EIA preparation agencies following PRC regulations and the Environmental Impact Assessment Technical Guidelines.

100. Samples of project beneficiaries and affected persons were selected by EIA preparation agencies to include residents of various ages, education, occupation, gender and various distances from the construction sites. The persons surveyed were randomly selected. From December 2002 to May 2003, a survey to collect information on project priority, project impacts, attitudes towards the Project and suggestions was conducted. A total of 400 questionnaires were distributed and 356 returned. Of the returned questionnaires, depending on the different subprojects, 68–93% considered the Project was a must, 65–91% believed it would improve environment and living conditions, and 74–89% were willing to accept the negative impacts during project construction. All surveyed persons were concerned about the noise, foul odor, sludge and/or silt and traffic impacts. More than 25% of the persons surveyed knew little about the Project scope and potential environmental impacts before the survey.

101. An expert workshop on the Project was held and attended by representatives from Government offices dealing with environmental protection, landscaping, municipal and industrial sectors, colleges, and hospitals. The consultation covered project priorities and feasibility, benefits and impacts. The interviewed professionals had a positive attitude towards the Project 20 and recommended prevention and mitigation measures for various impacts that might be caused by the project construction activities.

102. Two public consultation workshops on environmental impacts were held during the project preparation. The first workshop was held on August 6, 2003, and the second workshop was conducted on 13 November 2003. Over 110 persons including Fuzhou residents, representatives of local People’s Congress, Political Consultative Conference, industrial, commercial and religious sectors, high school and college students, woman’s organization, and others attended the workshops. In the workshops, EIA preparation agencies explained the anticipated environmental impacts and mitigation measures associated with each project component and the progress of EIA work. Relevant governmental officials, PMO, IAs and design institutes answered questions raised by the workshop participants. The participants voiced concern about environmental impacts and mitigation measures during the project implementation, and expressed their hope for the mitigation measures to be effectively implemented to ensure full environmental benefits of the Project.

IX. CONCLUSIONS

A. Benefits

103. The Project will significantly improve the urban environment and public health and safety of Fuzhou and promote its sustainable urban development. The Project aims for substantial improvement of Fuzhou’s wastewater management, including wastewater collection and treatment, diminishing the risks of flooding, and improving the water quality of the inland rivers of Nantai Island. The Project will have positive effects on the protection of water quality in the Min River, the source of drinking water for Fuzhou. Environmental improvements from the Project will provide opportunities for Fuzhou’s sustainable economic and social development, the development of local tourism industry, and overall improve the living and public health conditions of the residents of Fuzhou.

104. The Project will specifically extend and provide wastewater collection systems for the Yangli and Lianban collection areas. It will achieve a higher level of wastewater services in the project areas and Fuzhou-wide through improved management of the networks by strengthening an autonomous wastewater collection company. The collected wastewater will be transported to the Yangli and Lianban WWTPs, and treated to specified National standards. The construction and operation of the WWTPs will adhere to the environmental requirements stipulated in the SEIA and the EMP. Without these project components, the existing incomplete sewer networks cannot effectively collect the wastewater generated.

105. The Nantai Island Inland River Rehabilitation project component will significantly improve the environment of Nantai Island and enhance its flood control capacity. The improvement of the water quality of the inland rivers is expected as a result of the successful implementation of both Nantai Island Sewer Network and Inland River Rehabilitation project components. The environmental sustainability of the project component will be supported by a PDA that will promote a Clean River Program for the Urban Poor in Nantai Island. The PDA will increase public awareness and ensure stakeholder participation and ownership of the project component.

106. The environmental sustainability of the whole project will be supported by the establishment and operation of a training facility that will train the staff of the IAs in O&M and 21

environmental management and monitoring, and also serve as a public awareness and education center.

B. Potential Negative Impacts and Associated Mitigation Measures

107. There is an accepted risk that the environmental targets of the Project will not be achieved without (i) the timely completion and operation of the proposed WWTPs and pumping stations and flood gates at inland river estuaries, and (ii) the synchronized final design of the two Nantai Island project components. Appropriate loan assurances are designed to mitigate these risks. The Government will be required to ensure (i) completion of construction of the Yangli Phase 2 and Lianban WWTPs, and pumping stations and flood gates at inland river estuaries on or before the Project completion date (when the Yangli and Lianban sewer network Project components are completed); and (ii) coordinated design for the Lianban sewers networks (component B) and the Nantai Island inland river rehabilitation (component C), and their synchronized implementation.

108. In order to prevent potential negative environmental impacts from discharging untreated or inadequately treated sewage, the design of the WWTPs will adhere to specified national effluent standards. FMG and YLWWTP will ensure that Yangli and Lianban WWTPs are constructed and operated in accordance with sound environmental protection procedures and guidelines of the Government and ADB. FMG and YLWWTP will ensure that civil work contracts entered into with contractors will include obligations of contractors relating to environment including mitigation and monitoring measures as specified in the EMP. FMG and YLWWTP will ensure that any adverse environmental impacts arising from the Project, Yangli and Lianban WWTPs are minimized by implementing the mitigation measures prescribed in the EMP. With the above measure in place the potential adverse impacts of construction and operation of WWTPs associated with the Project on ecological and physical environment will be fully mitigated.

109. Construction and operation of sewer networks and the island river rehabilitation Project components will have few potential negative impacts. To mitigate those, standard technology used throughout the PRC conforming to international standards will be applied. Potential negative impacts on the social environment during construction and operation, including noise, odor and traffic congestion, will be reduced to acceptable levels through appropriate engineering and management measures. Construction and operation of each project component will concur with the planned mitigation measures. Institutional risks will be fully mitigated. While YLWWTP is an experienced agency, the environmental sustainability of its operations will be further safeguarded through the FMG ensuring that the YLWWTP will have financial and managerial autonomy to operate the project facilities. FUVCDC will receive appropriate training during construction and operation.

110. Relatively small amounts of irreplaceable resources will be used. Small-scale flow augmentation required after completion of the Inland River Rehabilitation component, will have insignificant negative impacts on water resources and the aquatic environment of Min River. Modeling studies conducted during the preparation of the EIA for this Project component indicated that water diversion flow would be less than 3% of the Min River’s normal flow, with water returning back to the Min River. The combined positive effect of the Nantai Sewer and Inland River Rehabilitation project components will result in the Min River quality achieving stable class III, suitable for drinking water purposes.

22

111. Adverse impacts from the Project on the social environment will be minimal. Mitigation measures for social impacts and the aim of the RP are to ensure that the APs' livelihood is at least maintained after the project implementation. The APs will be compensated in financial terms for loss of houses and ancillary buildings, land, livelihood productivity and land improvements. If required, livelihood restoration and alternative employment will be provided to minimize potential negative impacts.

112. Through the implementation of the supervision and management system specified in the EMP, the Project is expected to fully mitigate potential negative impacts.

C. Follow-up Monitoring and Management Requirements

113. While a comprehensive EMP for the pre-construction, construction and operation phases has been developed to ensure all mitigation and other environmental protection requirements will be met, the EMP will be further adjusted as necessary.

Appendix 1 23

REFERENCES

A. Documents and Reports

1. Asian Development Bank. May 2003. Manila. Environmental Assessment Guidelines. 2. Asian Development Bank. February 2003. Manila. Environmental Considerations in ADB Operations. Operations Manual, Section 20. 3. Pre-Feasibility Study Reports of the Project 4. EIA outlines for every project component 5. Fuzhou Aquatic Environmental Functional Zoning 6. Fuzhou Nantai Island Environmental Planning 7. Information concerning EIA of this Project.

B. Laws and Regulations

1. Environmental Protection Law of the People's Republic of China. 2. Environmental Impact Assessment Act of the People's Republic of China 3. Water Pollution Prevention Act of the People's Republic of China 4. Solid Waste Pollution Control Act of the People's Republic of China 5. Environmental Noise Pollution Control Act of the People's Republic of China 6. Air Pollution Prevention Act of the People's Republic of China 7. Environmental Protection Management Regulations for Construction Projects

C. Standards

1. Environmental Impact Assessment Technical Guideline (HJ/T2.1–2.3―93) 2. Environmental Quality Standards for Surface Water of PRC (GH3838-2002) 3. Quality Standards for Groundwater of PRC (GB-T 14848-9) 4. Integrated Wastewater Discharge Standard (GB8978-1996) 5. Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) 6. Municipal Sewer Discharge Standard (CJ3082-1999) 7. Water Quality Standards for Agricultural Irrigation (GB5084-92) 8. Water Quality Standards for Fisheries (GB11607-89) 9. Standard of Environmental Noise of Urban Area (GB3096-93) 10. Integrated Emission Standard of Air Pollutants (GB16297-1996) 11. Ambient Air Quality Standard of PRC (GB3095-1996) 12. Emission Standard for Odor Pollutants of PRC (GB14554-93) 13. The Control Standards of Pollutants in Sludge for Agricultural Use of PRC (GB4284-84)

24 Appendix 2

ENVIRONMENTAL MANAGEMENT PLAN OF FUZHOU ENVIRONMENTAL IMPROVEMENT PROJECT

IN THE PEOPLE’S REPUBLIC OF CHINA

June 2004 Appendix 2 25

CONTENTS

I. INTRODUCTION

II. SUMMARY OF POTENTIAL IMPACTS

III. MITIGATION MEASURES

IV. ENVIRONMENTAL MONITORING

A. Monitoring Program B. Monitoring Management C. Monitoring Costs

V. PUBLIC CONSULTATION A. Public Consultation During Project Preparation B. Future Public Consultation Plan

VI. RESPONSIBILITIES AND AUTHORITIES A. Environmental Responsibilities and Institutional Requirements B. Institutional Strengthening and Training

VII. REPORTING AND SUPERVISION

VIII. WORK PLAN

IX. PROCUREMENT PLAN AND COST ESTIMATES

X. MECHANISMS FOR FEEDBACK AND ADJUSTMENT

26 Appendix 2

I. INTRODUCTION

1. The Environmental Management Plan (EMP) covers all phases of the Project from pre- construction through commissioning and operation, and aims to ensure the monitoring of environmental impacts and the implementation of environmental mitigation measures.

2. Environmental monitoring programs will be carried out and the results will be used to evaluate the: (i) extent and severity of actual environmental impacts against 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 project EMP.

3. Environmental protection measures will (i) mitigate environmental impacts; (ii) ensure compliance with environmental regulations; (iii) provide compensation for lost environmental resources, and reduce or eliminate adverse impacts; and (iv) enhance environmental resources.

II. SUMMARY OF POTENTIAL IMPACTS

4. Potential impacts of the Project during the construction and operation phases will vary and are summarized in Table A2.1.

III. MITIGATION MEASURES

5. All mitigation measures will be implemented to minimize the potential adverse impacts. These measures will be incorporated into construction contracts and management plans and be implemented by the contractors or implementing agencies (IAs) under supervision of the project management office (PMO). Effectiveness of these measures will be evaluated based on the results of the environmental monitoring to determine whether to continue or make improvements. Improvement measures need to be confirmed through stipulated environmental management procedures. Costs of the EMP mitigation measures will be included in the project contracts and agreed upon with municipal and private budgets during operation. The mitigation measures for potential impacts of the Project, responsibilities, authorities, and corresponding cost estimates are presented in Table A2.1.

6. Resettlement Plans were prepared to ensure proper resettlement of the affected persons (APs) and that APs’ quality of life would not deteriorate. Details of required actions are given in the Project resettlement plans (RPs).

Table A2.1: Summary of Potential Impacts and Mitigation Measures Budget,a CNY 10,000 Total, CNY Yangli Lianban Inland 10,000 b Subject Potential Impacts Mitigation Measures Phase 2 Sewer River Sewer Networks Rehab Networks Construction Stage Water Sewage generated by site Enclose construction site, build drainage 30 30 80 140 construction activities and ditches, and install temporary holding tanks construction workers Short-term increase of Section by section construction is adopted 3 3 4 10 pollutants in water resulted from inland river rehabilitation

Air Dust suspension from Construction sites enclosure, spraying on 5 5 14 24 construction activities and dusty roads, covering transportation vehicles transportation or transport in closed containers, controlling vehicle speed control, and selecting transportation routes, covering of or spraying exposed storage sites, minimizing on-site construction material storage time Pollution of emission from Operate with proper maintenance and in 10 10 30 50 vehicles and construction compliance with the relevant emission machinery standards

Noise Noise generated by Reasonable construction arrangements, 8 8 15 31 construction machinery and installation of on-site sound barriers, proper transportation vehicles equipment and sound operation and maintenance (O&M)

Solid Waste Refuse generated on Timely clean-up, transportation in closed 5 5 20 30 construction site containers Appendix 2 Generation of wasted soil Soil reused for landscaping during construction Disposal of dredged Agricultural reuse, or disposed at sanitary 10 10 30 50 material from Inland River landfills if dredged material fails appropriate and sewer rehabilitation testing

27 a Budgeted costs for the mitigation measures will be covered by the contractors during construction and relevant Ias and government agencies will include specified budgets for mitigation in their operational costs. b Responsible Agencies – Implementation: IAs; Supervisory Agencies: FMEPB and PMO; Review Agencies; FPEPB, FMEPB, and ADB

28 Budget,a CNY 10,000 Total, CNY

Yangli Lianban Inland 10,000 Appen Subject Potential Impacts Mitigation Measuresb Phase 2 Sewer River Sewer Networks Rehab di

Networks x 2

Land Removal of vegetation Original vegetation is recovered after 8 8 44 60 construction Impacts of muddy runoff, Retaining wall or drainage ditch, enclosed 5 5 20 30 soil erosion and dust construction site or water spraying suspension on the surrounding crops

Ecology Removal or relocation of Trees are replanted after construction 15 15 1,206 1,236 trees Muddy runoff Retaining wall or drainage ditch 2 2 6 10

Social Resettlement Resettlement Plan in compliance with Asian Resettlement Development Bank policies Plan budgets

Other Traffic congestion or Construct interim roads, select transport 8 8 10 26 inconvenience routes, divert traffic at peak hours, repair the Inconvenience to disturbed roads shortly after the construction, pedestrians and shop and make interim traffic arrangement owners Interference with the Avoidance of other utilities will be carefully Construction existing pipelines or cables considered in design and construction, and contract rehabilitation of utilities disturbed by project budgets construction implemented

Environmental Interference of sewer Detailed coordination to be carried out during Construction Risk construction with roads, detailed design, including development of contract buildings, inland rivers, and appropriate construction options and budgets railways emergency plans

Operational Phase Water Overflowing or bypassing Install standby equipment at pumping stations, Costs related to O&M phases will be borne by of the wastewater use dual power source supply system, the operation agencies and/or companies implement proper maintenance program, enhance operational monitoring, and emergency measures

Budget,a CNY 10,000 Total, CNY Yangli Lianban Inland 10,000 Subject Potential Impacts Mitigation Measuresb Phase 2 Sewer River Sewer Networks Rehab Networks Wastewater discharge Interception; stringent environmental Costs related to O&M phases will be borne by along inland rivers management and pollution control the operation agencies and/or companies Inland river drainage pump Install standby equipment, use dual power Costs related to O&M phases will be borne by and/or gate failure results source supply system, implement proper the operation agencies and/or companies in water logging or water maintenance program, enhancement of quality deterioration operational monitoring, and emergency measures

Air Odor Separation and covering of potential odor Costs related to O&M phases will be borne by source; transport of sludge/residue in closed the operation agencies and/or companies containers Damage to sewers from Installation of inspection and control Costs related to O&M phases will be borne by corrosive/toxic gases equipment; appropriate spacing of manholes; the operation agencies and/or companies increased ventilation; and emergency measures

Noise Noise generated by pumps Select low noise machines, set high noise Costs related to O&M phases will be borne by and machineries equipment indoors, install noise enclosures or the operation agencies and/or companies buffers, semi-underground setting of pump stations

Solid Wastec Dredged sludge and/or silt Agricultural reuse, or disposed at sanitary Costs related to O&M phases will be borne by from waterway landfills if dredged material fails appropriate the operation agencies and/or companies maintenance testing Sludge and/or silt from Timely cleanup and transport in closed Costs related to O&M phases will be borne by wastewater pump stations containers the operation agencies and/or companies

Ecology Inland river flow Detailed justification and forecast of flow 600 600

augmentation from Min augmentation (annually) (annually) A River ppe c Mitigation measures related to operations of the WWTPs will be designed during the detailed technical design of the WWTPs. ndix 2 29

30 Budget,a CNY 10,000 Total, CNY

Yangli Lianban Inland 10,000 Appen Subject Potential Impacts Mitigation Measuresb Phase 2 Sewer River Sewer Networks Rehab di

Networks x 2

Environmental Construction of counterpart Synchronized construction of the associated Costs related to O&M phases will be borne by Risk wastewater treatment plant WWTPs the operation agencies and/or companies (WWTP) does not synchronize with the sewer networks, which would result in centralized discharge of wastewater collected in the sewers to the receiving water bodies Delay of pump and/or gate Synchronized construction of pumps and/or Costs related to O&M phases will be borne by construction at inland river gates at estuaries the operation agencies and/or companies estuaries results in water logging and water quality degradation Breakdown or bursting of Proper O&M, enhancement of operational Costs related to operation and maintenance sewers monitoring and emergency measures. phases will be borne by the operation agencies / companies. Other Monitoring of mitigation measures 8 12 35 55 (annually) Environmental maintenance of facilities 20 20 100 140 (annually) Advancing environmental management capacities 3 3 4 10 (annually)

O&M = operation and maintenance, WWTP = wastewater treatment plant Appendix 2 31

IV. ENVIRONMENTAL MONITORING

A. Monitoring Program

7. This Project is an urban infrastructure project and the monitoring program will focus on the environment within the Project area. The Project Performance Management System (PPMS) indicators for the Project include service levels, treated wastewater quality and other measures of operational performance, percentages of wastewater collected and treated, inland rivers rehabilitated, user satisfaction with the urban environment, and relevant economic and social data, such as income and health, to monitor project impacts. Under the PPMS framework, baseline and progress data will be reported at the requisite time intervals by the IAs. The IAs will be responsible for analyzing and consolidating the data through their MIS. The PPMS will be designed to permit adequate flexibility to adopt remedial action regarding project design, schedules, activities, and development impacts. The IAs have developed a detailed environmental monitoring program (Table A2.2) in line with the requirements of the Environmental Management Department (EMD) of Fuzhou Municipal Environmental Protection Bureau (FMEPB). This program considers the scopes of monitoring, environmental media, monitoring parameters and frequency, data processing and quality control requirements. The monitoring will follow the methodology provided in the National Standard Methods for Monitoring Pollutants, and other associated standards are National Environmental Quality Standards and Pollutant Discharge/Emission Standards. The EMD of FMEPB will be responsible for implementing this program, with the PMO being the other responsible agency.

8. Besides monitoring programs conducted by the IAs and the compliance monitoring by EMD, detailed internal environmental monitoring programs during the construction and operation phases with higher monitoring frequency will be conducted. These monitoring programs and budgets will be included in the construction and operation contracts. At the beginning of the Project, PMO, IAs 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. The PMO and IAs 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.

B. Monitoring Management

9. During the construction and operation, the EMD of FMEPB will be responsible for environmental monitoring in the Project area. The EMD has qualified staff with monitoring equipment and technical capability for monitoring of the aquatic, air, and physical environment (noise and vibration), sediment, soil and ecology (including solid waste), and traffic conditions. When complaints are received from the public, monitoring staff will conduct immediate inspections. The Department of Laboratories of FMEPB is appropriately certified, assuring the accuracy of the analytical results and their legal standing.

10. In addition, industrial wastewater discharges are monitored at least twice a year by the FMEPB. A comprehensive monitoring program with a higher frequency will be designed in the contexts of wastewater treatment plants (WWTPs) design.

32 Table A2.2: Environmental Monitoring Program

Appen Construction Budget, CNY 10,000 Total, Operation Budget, CNY 10,000 Total,

Phase (annually) CNY Phase (annually) CNY10,000 di

Yangli Lianban Inland 10,000 Yangli Lianban Inland (annually) x 2

Phase 2 Sewer River (annually) Phase 2 Sewer River Sewer Networks Rehab Sewer Networks Rehab Networks Networks Air Monitoring Locations Pug mills, dusty 5 5 7 17 Areas 4 4 7 15 roads, inland river surrounding construction sites pumping stations Parameters TSP, pug mill Odor emissions, PM10 Frequency 6 times a year (bi- 4 times a year monthly) (quarterly) Length of 1–3 days 5 days monitoring Sampling 10 am and 3 pm 7–11 am and 2– hours 5 pm Noise Monitoring Locations Sensitive areas 1.5 1.5 1 4 Outside areas 2 2 1 5 within 150 m from within 2–5 m construction site from pumping and buildings stations within 50 m from piling sites Parameters Noise Noise Frequency Twice a year Twice a year Length of 2 days 3 days monitoring Sampling Twice a day 10–11am and hours 10–11pm Water Quality Monitoring Locations Construction site 8 8 33 49 Inlet of sewer 5 5 18 28 networks, WWTP outfalls, inland river and surface water control sections

Construction Budget, CNY 10,000 Total, Operation Budget, CNY 10,000 Total, Phase (annually) CNY Phase (annually) CNY10,000 Yangli Lianban Inland 10,000 Yangli Lianban Inland (annually)

Phase 2 Sewer River (annually) Phase 2 Sewer River Sewer Networks Rehab Sewer Networks Rehab Networks Networks Parameters BOD5, COD, SS, BOD5, COD, SS, pH, heavy metals O&G, heavy metals, pH, color, turbidity, dissoluble organic substances, total P, total N, Slude Monitoring Locations Inland river Dredged sludge dredging sites and/or silt Parameters Heavy metals, etc. 1 1 2 4 Heavy metals, 2 2 3 7 etc. Frequency At least twice Once a year during dredging during dredging Responsible Agencies for the above Monitoring Monitoring FMEPB, IAs, FMEPB, IAs, agency Contractors Contractors Supervisory FMEPB, PMO FMEPB, PMO agency Review FPEPB, ADB FPEPB, ADB agency ADB = Asian Development Bank, BOD = biochemical oxygen demand, COD = chemical oxygen demand, FMEPB = Fuzhou Municipal Environmental Protection Bureau, FPEPB = Fujian Provincial EnvironmentalProtection Bureau, IA = implementing agency, m = meter, N = nitrogen, P = phosphorous, pH = factor of acidity, PMO = project management office, SS = suspended solids Note: Sludge monitoring for WWTPs will be prepared during WWTs final design. A ppe ndix 2

33 34 Appendix 2

C. Monitoring Costs

11. Environmental monitoring costs are included in Table A2.2, to be included in the project contracts, and counterpart budgets. Before implementing the monitoring plan, responsible agencies will present a further detailed breakdown of the estimated budget. During the project implementation, the costs required can be adjusted based on actual requirements.

12. FMEPB will ensure the monitoring budget is available for its EMD. Similarly, the IAs will include required budgets in the operation and management contracts.

V. PUBLIC CONSULTATION

D. Public Consultation during Project Preparation

13. Direct public participation was conducted as an on-going element in the development of the Project. These activities were carried out by EIA preparation agencies following PRC national guidelines, Environmental Impact Assessment Technical Guidelines, and the PPTA Consultants following ADB Guidelines Operations Manual (F1/OP issued on 29 October 2003).

E. Future Public Consultation Plan

14. Plans for public involvement during the design, construction and operation phases have been developed based on the two public consultation meetings conducted in 2003 during the project preparation stage. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages, (ii) evaluating environmental and economic benefits and social impacts, and (iii) interviewing the public after the Project is completed. These plans will include several types of public involvement, e.g. site visits, workshops, investigation on specific issues, interviews, and press conference (Table A2.3).

15. Public participation plans are part of the project implementation and management plan. IAs are the most responsible agencies for public participation during the project implementation stage. Costs for public participation activities during project implementation are included in the project funding. The costs are estimated as CNY 22,000 for each expert workshop, CNY 9,000 for each public investigation on a particular issue, CNY6,000 for each resettlement survey, CNY12,000 for each public workshop, and CNY 5,000 for each press conference.

Appendix 2 35

Table A2.3: Public Participation Plan Organizer Approach Times Subject Attendees A. Project Preparation IAs, Public At least Project priority, effects, Residents within EIA consultation once attitudes to the project, construction area Preparation Expert At least and suggestions Specialists from various Agencies workshop once sectors PPTA Public At least Comments and Representatives of Team workshop twice recommendations of the residents and social sectors public B. Construction Phase Public At least Adjusting of mitigation Residents within consultation once a year measures if necessary, construction area and site visits construction impacts, comments and suggestions Survey on At least Comments and Persons affected by resettlement twice suggestions resettlement and relocation Expert At least Comments and Experts of various sectors,

workshop or once suggestions on mitigation media press measures, public conference opinions Public At least Adjusting of mitigation Representatives of workshop once a year measures if necessary, residents and social sectors construction impacts, comments and suggestions C. Operational Phase Public At least Effects of mitigation Residents within consultation once every measures, impacts of construction area and site visits two years operation, comments and suggestions Survey on At least Comments on Persons affected by resettlement once every resettlement, resettlement and relocation two years improvement of living conditions, livelihood and poverty reduction; IAs comments and suggestions Expert At least Comments and Experts of various sectors, workshop or once every suggestions on media press three years operational impacts; conference public opinions Public At least Effects of mitigation Representatives of workshop once every measures, impacts of residents and social sectors two years operation, comments and suggestions

36 Appendix 2

VI. RESPONSIBILITIES AND AUTHORITIES

A. Environmental Responsibilities and Institutional Requirements

16. The EMP will ensure effective implementation of various identified mitigation measures.

17. During project preparation and implementation, various organizations with different environmental management responsibilities, FPEPB, PMO, FMEPB, IAs, design institutes, and contractors, have been involved and will be involved in the EMP. PMO and IAs, each will nominate dedicated, trained and qualified environmental specialists to undertake environmental management activities and ensure effective implementation of the EMP. Table A2.4 shows the environmental responsibilities in different phases of the Project.

Table A2.4: Environmental Responsibilities Responsible Environmental Responsibilities

Agencies Review and approval of EIA, including the environmental Preparation FPEPB, PMO management plan Design Incorporate mitigation measures in engineering designs and Design Institutes contracts FPEPB, Review and approval of environmental measures Design FMEPB, PMO, IAs Contractors, Tendering Incorporate EMP clauses in the bids PMO, IAs FMEPB, Construction Supervise implementation of mitigation measures Contractors FMEPB, IAs, Environmental monitoring and periodic environmental inspection Construction PMO FMEPB, IAs, Environmental management and monitoring Operation PMO EIA = environmental impact assessment, EMP = environmental management plan, FMEPB = Fuzhou Municipal Environmental Protection Bureau, FPEPB = Fujian Provincial Environmental Protection Bureau, IA = implementing agency, PMO = project management office

Note: Environmental project management consultants appointed for project implementation will advise PMO and IAs on carrying out their environmental responsibilities, budgeted inputs: 6 person-months. FMG will assure coordinating the detailed design of components B: Lianban Sewer Networks and C: Nantai Island Inland River Rehabilitation to insure the required water quality improvements in Nantai Island inland rivers.

18. Construction contractors and the facility operators will be responsible for actual implementation of mitigation measures during construction and operation, respectively.

19. The IA of both Sewer Networks Projects is YLWWTP, an experienced agency, capable of quality management of WWTPs; however, FMG will further ensure that YLWWTP will have financial and managerial autonomy to operate the project facilities. YLWWTP will benefit from further trainings provided by the project (Table A2.5).

20. The IA of Nantai Island Inland River Rehabilitation Project is Fuzhou Urban Visual Construction and Development Company (FUVCDC), which is affiliated with the Fuzhou Urban Management Bureau. In order to further build its staff capacity for project implementation, it has Appendix 2 37 developed training programs and will incorporate these activities into the construction and operation management plans.

21. In accordance with EMP, IAs will establish an environmental management office within the project management departments that will generally require two employees. During the project, this office will be responsible for (i) implementing the EMP and developing further implementation details; (ii) supervising implementation of mitigation measures during construction; (iii) implementation of training programs; (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 EMP to the responsible agencies. Each IA will have two environmental specialists and the PMO will have one environmental specialist.

22. FMG will ensure that local regulations for management of the wastewater/drainage systems are reviewed annually to define clear responsibilities between agencies involved and appropriate penalties for non-compliance, and effectiveness of such regulations is reviewed on a bi-annual basis and adequately modified in accordance with applicable legal procedures.

23. Environmental Project Management Consultants will advise PMO and IAs on all aspects of environmental managements and monitoring for the project components. The Consultants will (i) review project environmental practices and procedures; (ii) provide guidance in environmental standard setting and assist in implementation procedures; (iii) investigate and make recommendations on other environmental issues; (iv) undertake a general review of the compilation of environmental compliance programs; (v) review procedures for the control of discharges of industrial waste and recommend improvements; (vi) review policies and procedures for sewer connections programs; and (vii) develop a comprehensive program for FMG to coordinate the future environmental management with the private sector component.

B. Institutional Strengthening and Training

24. Environmental specialists of FMEPB, PMO and IAs will receive training in environmental management, 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 (O&M) budgets during operational phase.

38 Appendix 2

Table A2.5: Institutional Strengthening and Training Strengthening Agencies Strengthening Plan Timing Activities Capacity Building IAs Institutional organization, During Project Preparation PMO development of responsibilities for and Implementation each position Monitoring Same as above Procurement of related monitoring Same as above instruments and equipment

Training Attendees Contents Period Cost (Days) (CNY/person/day) EMP IAs Development and adjustment of 5–7 200 implementation PMO EMP, and Adjustment, FMEPB emergency response, settlement of environmental laws and disputes regulations, environmental management Environmental Same as above Engineering technologies; 8–10 240 processes, pollution control; equipment selection and

procurement Water quality and Same as above Monitoring methods, 8–10 quantity data collection and processing, 350 monitoring reporting system

Environmental IAs Environmental laws and 3–5 policies and plans FMEPB regulations; 200 environmental management; emergency response EA = executing agency, FMEPB = Fuzhou Municipal Environmental Protection Bureau, IA = implementing agency, PMO = project management office

25. The FMEPB is in the position to and is capable of enforcing industrial pollution control. The relevant regulations and industrial pollution control measures are in place.

VII. REPORTING AND SUPERVISION

26. Results from the environmental monitoring for both construction and operational phases will be submitted by the Contractors and Operators to the FMEPB, PMO and IAs on a, monthly basis. FMEPB, and/or ADB may request that further actions be taken for environmental mitigations, as they deem necessary, and may determine further mitigation measures for different stages, if necessary.

27. The PMO will submit to ADB the EMP progress reports and information including project implementation, and environmental performance of the contractors, IAs and environmental project management consultants. These reports will include (i) semiannual progress reports on project implementation, (ii) annual reports, and (iii) a project completion report no later than three months after completion of the Project. Progress reports will emphasize progress made in the areas of water quality improvements, monitoring results, implementation of mitigation measures, environmental compliance, training and capacity building progress.

Appendix 2 39

28. The PMO, with the assistance of the Consultants, will monitor and assess overall project activities under PPMS, including environmental targets, and report to ADB semi-annually on the physical implementation including environmental aspects of the project to ensure that its progress and impacts are monitored and reported in line with ADB requirements.

VIII. WORK PLAN

29. Before construction, IAs will develop detailed responsibilities and requirements for contractors, cost estimates of mitigation measures and environmental monitoring in the construction contracts. IAs also will specify responsibilities of their environmental management office and prepare a work schedule. PMO will inspect and oversee these elements.

30. Before operation, IAs will develop detailed work plans for environmental management and monitoring during operation based on the EMP and consistent with the construction stages. These work plans will be submitted to FMEPB and PMO for their supervision of the implementation of these plans.

31. Environmental management responsibilities, requirements, monitoring plans, and other related works will be specified in the tendering documents and management contracts.

IX. PROCUREMENT PLAN AND COST ESTIMATES

32. IAs will develop detail plans for procurement of equipment and materials and others for implementing mitigation measures and monitoring plans. These plans will be incorporated into the project contracts.

33. Cost estimates for mitigation measures and monitoring plans are summarized in Table A2.1. A detail breakdown of the cost estimates will be prepared by the design institutes and included in the tender documents. Costs for all mitigation measures and environmental monitoring during construction stage will be included in the contract document and be borne by contractors. Costs related to operation and maintenance phases will be borne by the operation agencies/companies. Cost for the environmental project consultant and for the training and/or public awareness center will be borne by the project.

X. MECHANISMS FOR FEEDBACK AND ADJUSTMENT

34. The effectiveness of mitigation measures and monitoring plans will be evaluated through the feedback reporting system. The adjustment of measures required by the EMP will be done if necessary. FMEPB and PMO play critical roles in this feedback and adjustment mechanism as shown in Figure A2.

35. Feedback and adjustment will be carried out in two tiers. Upon request of EMP modification by the contractors and/or operators, FMEPB, PMO and IAs will review the proposals in detail and consider their acceptance or rejection. Specified corrected measures will then be submitted by contractors and operators to FMEPB, PMO and IAs for review. Comments and suggestions coming from FPEPB, State Environmental Protection Administration (SEPA) and ADB will also be considered by FMEPB and PMO and appropriate responses and revisions of the EMP will be implemented if necessary. Contractors and operators will then undertake appropriate timely adjustment of the EMP during project implementation and operational of project facilities.

40 Appendix 2

Figure A2: Mechanism for Feedback and Adjustment of Environmental Management Plan

FPEPB SEPA ADB

Reporting Comments and Suggestions

FMEPB; PMO; IAsa

Documentation of Project Adjustment

Supervise and Reject

Contractors Operators

Implementation Feedback on Performance Adjustment

Implementation of Mitigation Measures and Monitoring Programs

ADB = Asian Development Bank, FPEPB = Fujian Provincial Environmental Protection Bureau, FMEPB = Fuzhou Municipal Environmental Protection Bureau, IA = implementing agency, PMO = project management office a Environmental Specialists of each IAs and the environmental project management consultants for the project implementation