SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

FOR THE

CHENGDU-NANCHONG EXPRESSWAY PROJECT

IN

THE PEOPLE’S REPUBLIC OF

July 1998 CURRENCY EQUIVALENTS (as of 15 May 1998)

Currency Unit — Yuan (Y) Y1.00 = $0.1208 $1.00 = Y8.2789

ABBREVIATIONS

CNEC — -Nanchong Expressway Corporation CNECCO — Chengdu-Nanchong Expressway Construction Commanding Office COD — Chemical Oxygen Demand CO — Carbon Monoxide EIA — Environmental Impact Assessment EPB — Environmental Protection Bureau NH — National Highway NOX — Nitrogen Oxides O&G — Oil and Grease pH — Hydrogen Ion Concentration SEIA — Summary Environmental Impact Assessment SEPA — State Environmental Protection Administration SPCD — Provincial Communications Department SPI — Sichuan Provincial Institute of Highway Planning, Survey and Design SS — Suspended Solids TSP — Total Suspended Particulate US — The United States

WEIGHTS AND MEASURES oC — degree Celsius dB(A) — decibel A (audible decibel) mg/m3 — milligram per cubic meter mu — land area unit (1 mu = 666m2 ; 15.01 mu = 1 hectare) sec — second

NOTE

In this Report, the symbol ”$” refers to the US dollar. CONTENTS

Page

MAPS

I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1 III. DESCRIPTION OF THE ENVIRONMENT 2 A. Physical Environment 2 B. Ecological Environment 5 C. Socioeconomic Environment 5

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 7 A. Socioeconomic Environment 7 B. Air Quality 11 C. Noise 12 D. Water Quality 13 E. Erosion and Silt Runoff 14 F. Bridge Construction 15 G. Sand and Gravel Extraction 15 H. Coal Ash 15 I. Lead Contamination of Soil 15 J. Hazardous Material Transportation 16 K. Environmentally Sensitive Areas 17

V. ALTERNATIVES 17 VI. BENEFIT-COST ANALYSIS 18 VII. INSTITUTIONAL ARRANGEMENTS AND ENVIRONMENTAL MONITORING 19 VIII. PUBLIC INVOLVEMENT 21 IX. CONCLUSIONS 22 I. INTRODUCTION

1. This Summary Environmental Impact Assessment (SEIA) is primarily based on information contained in the 1997 Environmental Impact Assessment (EIA),1 prepared by the Sichuan Provincial Institute of Highway Planning, Survey and Design (SPI) and Xian Highway University for the proposed Chengdu-Nanchong Expressway Project. Additional information was obtained through a series of meetings with local environmental, socioeconomic, and resettlement specialists, with project planners and design engineers, and with officers from the Planning Section of the Sichuan Provincial Communications Department (SPCD), which will be the Executing Agency for this Project. Direct observations during site visits to the proposed Project area further improved the understanding of its general setting and physical conditions. The SEIA also draws information from the Resettlement Action Plan, Initial Social Assessment Report, and Feasibility Study Report prepared by consultants on the proposed Project in 1997. Data contained in these reports were updated, where appropriate, when the SEIA was prepared.

2. The EIA followed guidelines set out by the State Environmental Protection Administration (SEPA) and the Ministry of Communications of the People’s Republic of China (PRC). The EIA was approved by SEPA on 3 June 1998.

II. DESCRIPTION OF THE PROJECT

3. The main components of the Project are (i) the construction of 208 kilometers (km) of controlled-access toll expressway including 14 interchanges, and 69 large and medium bridges totaling about 8,000 linear meters (m); (ii) construction of 42 km of link roads to main city centers; and (iii) construction/upgrading of about 200 km of county and village access roads.

4. The proposed expressway is designed to be a multiple-lane, limited-access expressway that will be an integral part of a national trunk highway, the Chengdu-Shanghai Expressway. The total estimated capital cost for the Project is $670 million equivalent. The Project will be divided into three sections—Chengdu-Liaojiachang, Liaojiachang-Suining, and Suining-Nanchong—based on their distinct terrain and/or design configuration. The key features of the Project are summarized in Table 1.

Table 1: Major Project Features Item Chengdu-Laiojiachang Liaojiachang-Suining Suining-Nanchong Total length (km) 19.4 111.85 76.47 Land occupied (mua) 1,854 9,782 7,537 No. of lanes 6 4 4 No. of culverts 79 448 310 No. of bridges 10 65 55 Resettlement (m2) 52,970 140,950 85,060 Design speed (km/hr) 120 100 80 Road base width (m) 35.5 26.5 25.0 Service stations 0 3 2 Characteristic landform plain Heavy hilly mountainous Construction period (years) 3 5 5 Counties/districts connected Longquan (Chd) Zhongjiang (Dyg) Shizhong (Sng)

1 Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section. 2

Item Chengdu-Laiojiachang Liaojiachang-Suining Suining-Nanchong (and citiesb they belong to) Qibaijiang (Chd) Penxi (Sng) Jialing (Nch) Jingtang (Chd) Shizhong (Sng) Gaoping (Nch) Note: The Chendgu Connector is not included in the Project. a 15 mu to a hectare. b Chd: Chengdu; Dyg: Deyang; Sng: Suining; Nch: Nanchong. Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

5. The proposed expressway alignment will pass eight counties under the jurisdiction of four cities in the middle of Sichuan Province. It originates in the city of Chengdu, extends eastward through the cities of Deyang and Suining, and ends at the city of Nanchong, totaling 208 km. Of the eight counties crossed by the expressway, two are categorized as “poverty counties” by the State.1 The expressway will be constructed on a new alignment mostly on agricultural and reforested land. The new alignment is much shorter than National Highway (NH) 318, a Class III road, which is the main existing route connecting Chengdu with Nanchong via Suining.

6. The expressway will be part of the national trunk highway network. It will link the provincial capital Chengdu with the underdeveloped areas in mideast Sichuan and eventually to the coastal area in the eastern part of the PRC. The expressway will greatly improve the transportation infrastructure of the province and promote its economic development, particularly the regions in and around the Project corridors in which the poor existing transportation infrastructure impedes the region’s economic development. The construction is scheduled to start in late 1998 and to be completed in five years.

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Environment

1. Landform and Geology

7. The first 20 km section of the expressway is located at the Chengdu Plain with relative elevation varying by 10 m. The next 20 km runs through the Longquan mountain area, characterized by high ridges and deep valleys. The remainder of the expressway is located within the mountainous area of the .

8. The underlying geology is characterized by Chengdu graben zone, Longquan Mountain fault, and the central Sichuan folding zone of the Neocathaysian Sichuan subduction zone. The soil west of the Longquan Mountain is mostly clay with weak expansion capability, while that on the east is mostly accumulated soft soil with poor drainage. Small-scale landslides and considerable erosion could result during heavy rainfalls in areas of steep slopes and deep valleys.

9. A 1989 investigation2 indicated that, within the four Project cities, over 5,220 square km (km2) suffered serious silt erosion or siltation, with intensity of 6,900 to nearly 9,000 tons (t) per km2 per year. A reforestation program in implementation since 1989 has significantly

1 The state poverty line in Y630 in 1997. The list of “poverty counties” is prepared by the Leading Group on Poverty Alleviation. 2 Sichuan Hydro and Power Bureau, 1989, Sichuan Soil Erosion Investigation Report. 3

reduced the erosion, both in terms of area and intensity. The same statistics for 1994 showed that the area still suffering from siltation had been brought down to about 3,234 km2, with the intensity down to 2,300 to 5,000 t/km2/year.

2. Climate

10. The Project area is characterized by subtropical climate with hot summers and mild winters. The annual average temperature is 16 degrees Celsius (oC) in Chengdu and 22oC in Suining. The yearly precipitation is 950-990 millimeters (mm), 68 percent of which falls between May and September, while the dry season of December to February has only 5 percent of the annual precipitation. The prevailing wind directions are north to northeast. The annual average wind speed is 1.3 to 2.4 m/second (sec), while the calm condition occurs frequently, from 42 percent of the time in Chengdu up to 68 percent in Suining.

3. Hydrology/Water Quality

11. The Project area is located in the upper River basin criss-crossed by over 50 rivers, canals, and creeks, and adjacent to many ponds. The four largest rivers are described in Table 2.

Table 2: Major Rivers Along the Project Alignment Name Crossing Hydrology Major Function Sensitivities Position Km 38 + 290 225-519 m3/sec irrigation, drinking, drinking water intake 4 km seasonal navigation upstream sports fishing Km 110 + 370 11 m3/sec irrigation, drinking drinking water intake 2.6 Km 120 + 950 km downstream Km 132 + 915 449-672 m3/sec irrigation, drinking, drinking water intake 1 km seasonal navigation upstream Km 198 + 943 1053-2120 m3/sec irrigation, drinking drinking water intake 1.6 seasonal navigation km upstream Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

12. There are 40 water ponds/reservoirs with surface area larger than 5,000 square m (m2) each and 70 smaller ones that are located within 200 m of the center line of the expressway alignment. The total water surface area in this corridor is about 824,328 m2. These bodies are primarily for irrigation, or fish or duck ponds but five of them are also drinking water sources for the villages nearby.

13. The Project area hydrogeology is characterized by Quarternary system glatiofluvial deposit, weathered rocks, and sandstone with limited groundwater resources. The shallow aquifer, typically 1.5 to 5 m below grade, is highly dependent on recharges from natural precipitation and rarely is the main source for domestic use and irrigation. Areas toward Nanchong are part of central Sichuan drought region, which relies on precipitation for its water supply.

14. Water samples collected during the EIA from the four major rivers at the locations close to the proposed expressway crossings showed light to modest organic and oil & 4

grease (O&G) pollution in the sampling areas. However, with one exception, all major water quality criteria were within the Class III standards1 applied to these rivers. O&G found in the Tuo River exceeded the standard by 20 percent. Some sections of Tuo and Fu rivers were also of poor quality as visually observed in EIA field investigation. The primary sources of the elevated O&G in the river and other contaminants are runoff from roadways and agricultural lands and effluents from industrial/domestic discharges of the urban and rural communities in the adjacent areas.

4. Air Quality

15. A four-day air monitoring program was carried out along the Project corridor during the EIA. At each of the five sampling locations, 20 instantaneous readings and five daily average readings for carbon monoxide (CO), nitrogen oxides (NOX), and total suspended particulate (TSP) were collected. All these readings were well within applicable national air quality standards,2 indicating a fairly good baseline for ambient air quality in the Project corridor.

16. Rainfall samples from three locations (primarily in the Nanchong area) were also collected for the same air quality monitoring, and hydrogen ion concentration (pH) values were measured. The average pH readings of the 29 to 39 samples from each location ranged from 4.3 to 4.8. The low pH is attributed to 35 large industrial facilities in the area that emit high levels of sulfur oxides.

5. Acoustic Environment

17. A total of 113 receptors along the expressway alignment were identified as being sensitive to increased noise because of their nature and close proximity to the proposed expressway. These are 33 elementary and secondary schools, 2 hospitals, and 78 villages or residential areas, all of which are within 200 m of the proposed expressway. Villages and other facilities beyond the 200 m range are considered less sensitive to the expressway traffic because of attenuation of noise over distance.

18. A noise monitoring program was conducted at nine locations along the proposed expressway and existing roads. The expressway corridor noise readings ranged between 46.0 and 59.6 decibel (A) [dB(A)] during the day and 35.5-48.4 dB(A) during the night, below or well below applicable national noise standards of 60-70 dB(A) for daytime and 50-55 dB(A) for night.3 This indicates a high-quality acoustic environment under the existing conditions, especially in the rural areas that recorded the lowest noise. Noise monitoring results from locations near NH 318 exceeded the standards at the roadside, but fell within the standards at a distance of 25-50 m from the roads.

B. Ecological Environment

1. Vegetation and Soil

1 State Environmental Protection Administration, 1988, Surface Water Quality Standards, GB3838-88 and 1992, Agricultural Field Irrigation Water Quality Standards, GB5084-92. Class III standards are for municipal drinking water with treatment. 2 State Environmental Protection Administration: Ambient Air Quality Standards, GB3095-96. 3 State Environmental Protection Administration: Urban Area Environmental Noise Standards, GB3096-93. 5

19. The dominant land use for the entire length of the proposed alignment is agriculture. Along the alignment there are no virgin forests or areas with known ecological or archaeological value. The main agricultural resources in the Project region are shown in Table 3.

Table 3: Agricultural Resources of the Project Area Category Type Main Crops rice, wheat, corn, sweet potato, beans, cotton Cash Crops vegetables, peppers, peanut, sesame, tobacco, herbs, sugarcane Fruits orange, pear, apple, peach, grapefruit, Chinese orange Roadside/Reforest Trees cypress, alder, mulberry, mason pine, bamboo, eucalyptus Livestock and Poultry pig, cow, duck, goose, rabbit, chicken Others Silkworm, horticulture Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

20. A soil sampling and analysis program for the EIA indicated that soil in the Project area is slightly alkaline, with pH ranging from 8.5 to 9.1. The lead content in the soil samples ranged from 19.8 to 23.4 milligram per kilogram (mg/kg), below the average baseline lead concentration of 28.9 mg/kg in the province and far below the national limit for agricultural land of 350 mg/kg.

2. Wildlife

21. Throughout the Project area, human population density is high, and few areas have been spared a long history of human activities including industrial development. As a result, there is no significant wildlife. The small population of wildlife still present in the area includes badger, skunk, raccoon, wolf, fox, rabbit, snake, tortoise, magpie, thrush, cuckoo, woodpecker, lark, and wood anemone. There are no rare or endangered species or designated protected areas for wildlife.

3. Fisheries

22. According to site investigations and recent government records, there are no significant fisheries in the Project area. There is some minor fish farming and small-scale sport fishing.

C. Socioeconomic Environment

1. Population and Communities

23. Details on the Project area population and labor distribution by city/county are presented in Table 4. Table 4: Project Area Population City District/ Population Rural Population Labor Labor in Labor in Labor in County (x1,000) Population Density Force Agricul. Industry Services (x1,000) per km2 (x1,000) (x1,000) (x1,000) (x1,000) Chengdu Longquan 451 341 807 280 145 69 66 Qingbaijiang 387 307 N/A N/A N/A N/A N/A Jintang 823 738 712 512 264 127 120 Deyang Zhongjiang 1,370 1,266 664 875 546 176 163 Suining Penxi 1,262 1,161 646 673 440 117 117 6

Shizhong 1,351 1,155 720 721 472 125 125 Nanchong Gaoping 545 461 671 314 208 52 54 Jialing 664 640 519 383 254 63 66 N/A = Not applicable Source: Post, Buckley International, Inc., January 1998.

2. Industries

24. The major industry in the Project area is related to agriculture processing, including food processing, textile, liquor breweries, and beverage production. There are also small-scale machinery and chemical mills. Oil and natural gas fields have been discovered, and development of refinery and petrochemical industries can be expected.

3. Infrastructure Facilities and Transportation

25. The primary socioeconomic services of the Project area are shown in Table 5.

Table 5: Main Socioeconomic Services of the Project Area City District/ School Enrollment Cultural Hospitals/ Road Telephone County No. Rate (percent) Centers Beds (km) (no. of units) Chengdu Longquan 374 100 20 10/935 224 5,734 Qingbaijiang 300 99.7 16 22/697 176 8,883 Jintang 389 99.5 24 53/1,488 480 6,868 Deyang Zhongjiang 356 99.1 22 99/1,447 753 8,098 Suining Penxi 502 98 0 97/1,636 659 6,236 Shizhong 619 99.2 39 83/3,097 842 17,595 Nanchong Gaoping 301 98.1 9 43/913 284 2,545 Jialing 328 97.8 38 52/418 368 983 Source: Post, Buckley International, Inc., January 1998.

Nanchong has an airport that provides daily flights to Chengdu. A new railway between Chengdu and Nanchong via Suining was completed in 1997 and was scheduled to be in service in early 1998. The area waterways (Jialing, Tuo, and Qi rivers) used to be the major transportation routes for goods, but were gradually replaced by road transportation. However, they are still used seasonally for movement of bulk cargoes.

4. Land Use

26. The predominant land use in the Project area is agriculture, other than the area occupied by urban areas, townships, and rural villages. Industrial and other forms of land use are minimal.

5. Agricultural Development and Quality of Life

27. The major rural socioeconomic indicators are presented in Table 6. 7

Table 6: Main Socioeconomic Indicators of the Project Area City District/ Average Farmer’s Cultivated Average Cultivated Agricultural County Income Land Land (mu/farmer) Income (Y/capita/year) (x1000 mu) (Y/mu) Chengdu Longquan 3,279 258 0.76 3,500 Qibaijiang 1,809 299 0.97 3,500 Jintang 1,612 759 1.08 3,500 Deyang Zhongjiang 1,272 1,126 0.89 2,500 Suining Penxi 914 972 0.84 2,500 Shizhong 1,098 1,072 0.93 2,500 Nanchong Gaoping 988 341 0.74 2,000 Jialing 960 619 0.97 2,000 Source: Post, Buckley International, Inc., January 1998.

The economic development in the Project area has varied significantly. Between 1990 and 1995, Chengdu had an average economic growth of 16 percent per year, while Suining had 11.7 percent, and Nanchong 6.45 percent. By 1995, the total gross domestic products in Chengdu, Deyang, Suining, and Nanchong had reached Y71.4, 16.1, 4.9, and 7.0 billion, respectively.1

6. Heritage/Cultural Resources

28. Consultation with relevant government agencies and local townships, as well as site reconnaissance by local highway engineers, revealed no significant cultural, historical, or heritage resources close to the Project alignment, although there is a long history of human activities and many historical sites in and around the region. There are no known archaeological sites in this area.

29. There are limited tourist resources in the immediate vicinity of the project area, consisting primarily of Buddhist temples and some resort facilities developed in recent years. Although over 378,000 foreign visitors arrived in Sichuan Province in 1995, the last year for which such statistics are available, few went beyond the city of Chengdu and other tourist attractions in the province.

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Socioeconomic Impacts

1. Land Acquisition

30. The proposed expressway will occupy 19,708 mu (1 mu = 666 m2), of which 16,409 mu is agricultural land. An additional 2,468 mu will be occupied during construction for temporary roads, storage sites, asphalt mills, etc. The permanently occupied land represents about 0.3 percent of the total cultivated land in the Project area. In addition, about 50,000 m2 of surface water area will be occupied by the expressway, representing about 6 percent of the total pond or reservoir areas. Cultivated land is jointly owned by all farmers in a village. If certain land is converted for other uses, the remaining cultivated land would be redistributed among all the farmers in the village, thereby the whole village shares the impact of the land loss collectively. Table 7 shows the level of the land loss impact in the affected area.

1 Sichuan Statistics Bureau, 1995, Sichuan Statistics Yearbook. 8

Table 7: Agricultural Land Affected by the Project City County Total Average Cultivated Average Land Loss of Cultivated Cultivated Land to be Land Loss the Total Land (x1000 Land Lost to the per Farmer (percent) mu) (mu/farmer) Project (mu) (percent)a Chengdu Longquan 258 0.76 990 13.1 0.38 Qingbaijiang 299 0.97 1,378 10.3 0.44 Jintang 759 1.08 2,779 9.3 0.37 Deyang Zhongjiang 1,126 0.89 2,171 11.2 0.19 Suining Penxi 971 0.84 4,758 11.9 0.49 Shizhong 1,072 0.93 2,517 10.8 0.23 Nanchong Gaoping 341 0.74 2,033 13.5 0.60 Jialing 619 0.97 2,864 10.3 0.46 a Based on the average land loss of 0.108 mu/farmer for the directly affected rural population. Source: Post, Buckley International, Inc., January 1998.

31. Within the acquired land for the expressway, 11,594 mu will be landscaped or reforested on both sides of the expressway and the embankment at an estimated cost of Y38.7 million. This represents 58.8 percent of the total land to be acquired for the expressway. In addition, about 26,000 m2 of water surface will be created from earth pits in the area, compensating for 52 percent of the water pond surface lost. As the lost cultivated land cannot be recovered elsewhere, affected farmers will be compensated with Y9,760/mu on average. The land temporarily occupied will also be compensated for, at an average rate of Y3,500/mu. It is expected that the money will be used to increase unit output on the remaining farmland (such as improving existing irrigation systems or converting to high-yield cash crops) and to develop “township and village” industries and services to offset the lost production and revenue.

32. Even after the mitigation measures have been taken, 8,114 mu of green field and 24,000 m2 water surface will be lost. When the impact is shared by all farmers in the affected villages, the highest land loss impact will be about 13 percent of their land (Table 7). The impact due to the temporary land occupation will last three years at maximum and will dissipate when the land is reclaimed at the completion of construction. With appropriate use of the compensation funds, impacts on agricultural output and revenue caused by the temporary or permanent land occupation are expected to be insignificant.

2. Resettlement

33. Resettlement plans, other than land acquisition for the expressway and applicable compensation, are summarized in Table 8.

Table 8: Resettlement and Compensation Summary Items Unit Quantity Compensation Unit Rate Total House m2 293,050 Y 70/m2 Y20.5 million Electrical Cable m 158,790 Y 7.5-20/m Y2.21 million Communication Cable m 71,540 Y 15/m Y1.1 million Pipeline m 860 Y 15/m Y12,900 Orchard and Trees Tree 419 Y 5-300/tree Y35.7 million Road km 11 Source: Post, Buckley International, Inc., January 1998. 9

34. The number of people to be relocated is estimated at about 9,600. An estimated 17,500 people will be affected by the loss of land. The Project alignment will also affect a total of 293,050 m2 of mostly rural residential housing. About Y223 million will be set aside for the resettlement subsidies, included under the land compensation package. Of this amount, 86 percent will be used to increase agricultural productivity, about 13 percent for interim living costs, and the remainder for training Project-affected persons.

3. Vegetation

35. A large quantity of vegetation will be removed from the Project alignment during construction. The impact on incomes for farmers who will lose their fruit trees and other vegetation to the expressway and the proposed compensation is expressed in Table 9.

Table 9: Impact on and Compensation for Fruit Trees (Expressway) Vegetation Type Quantity Compensation Compensation Total (Y/tree) (Y) Young Fruit Trees 32,362 10 323,620 Mature Fruit Trees 85,244 300 25,573,000 Other Trees 231,738 5-100 9,619,000 Bamboo (kg) 620,060 0.15 140,000 Source: Post, Buckley International, Inc., January 1998.

36. It usually takes about 2-3 years for young trees to mature to full production capacity. Farmers who lose fruit trees will be affected in terms of reduced fruit yields and revenues for up to 2-3 years. However, it is expected that some of the young trees may be re- planted elsewhere, in which case the impact on yields will be minimized.

4. Severance of Rural Communities

37. The fully fenced, limited-access expressway will separate certain farmlands from farmers, and some villages from one another, on both sides of the alignment. It may limit the access of certain farmers to their fields and certain rural residents to schools, markets, services, and relatives/friends. A total of 78 villages, 33 schools, and 2 hospitals with over 14,000 residents and 12,000 students/teachers within 200 m of the expressway will be directly affected. The severance of access to services will affect a much larger population located close to, but not within, 200 m of the expressway. 38. To mitigate this impact, 639 crossings will be constructed beneath the expressway, one every 0.3 km on average. The total cost for building the crossings will be about Y127 million. The location of the crossings are based on needs for agricultural and social activities.

Table 10: Expressway Crossings Grade Design (width x height, m) Designed Functions Number Class I 8 x 5 motor vehicles 49 Class II 6 x 3.5 tractors and agricultural vehicles 44 Class III 4 x 2.5 pedestrians 546 Source: Post, Buckley International, Inc., January 1998. 10

The crossings will eliminate the community severance impact. Pedestrians, who otherwise may walk directly to their destinations through the field, will have to walk not more than 0.15 km on the average to a crossing. Some farmland originally cultivated as one parcel will be split into two.

5. Economic Development

39. The Project will improve the infrastructure in the region and make it more attractive to outside investments. Economic benefits will also include higher efficiency for the transportation of local commodities such as fruits, silk, livestock, liquor, and finished goods to local and outside markets. More tangible and immediate benefits will increase employment opportunities directly related to Project construction and operation. Of the estimated 11 million “labor-days” required for the expressway construction, 40 percent are expected to come from the domestic labor force. Indirect employment related to services and vendors will generate additional income opportunities during construction. In the operation stage, an estimated 1,200-1,500 permanent employment positions related to highway maintenance, services, toll station operation, management, etc., and additional indirect employment positions will be created in the region.

6. Indirect Development

40. The expressway will make the Project area more attractive for further development and investment from outside sources. Short-and long-term development plans for the region place textile, food processing, chemical, general machinery, and construction material industries on top of the development priority list. Although most of the planned industrial development will be the expansion of existing establishments, some new ones can be expected in locations along the expressway, especially on land near expressway entrances/exits and major interchanges. While benefiting the local economy and standards of living for the people in the Project area, the new developments and emissions/discharges from new industries will adversely affect the environment.

41. The key environmental protection measure for new industrial developments is to have sound environmental planning and management. No developments should be allowed without an appropriate EIA and mitigation plan. Significant adverse impacts resulting from new developments should be avoided or minimized before new developments are approved.

B. Air Quality

1. Construction Stage

42. The primary air emissions during Project construction will be from pug mills and airborne dust from heavy equipment operation. The airborne dust could affect the yield of Chinese orange trees from nearby orchards. Air monitoring data from similar highway projects indicate that, at 100 m from the source, concentrations of pug mill emissions are up to 1.2 to 1.7 mg per cubic meter (mg/m3) and dust from vehicular traffic, 20 mg/m3 (in the form of TSP); air pollutants can disperse about 150 m downwind.

43. Pug mills will be located at least 300 m from receptors and will be covered, where necessary. The residual impact of pug mill emissions will be negligible except to 11 construction workers. During the dry season, truck roads in sensitive areas will be watered for dust suppression. The residual impact of airborne dust will be limited to areas close to truck roads and terminated soon after the truck traffic ends. Implementation of these measures will obviate any threat to nearby orchards.

2. Operation Stage

44. A Gaussian equation-based model was used to forecast air quality from the expressway during its operation at Class D atmospheric stability, which accounts for about 60 percent of the stability frequency in the Project area. The results at 60 m from the alignment in selected sensitive locations are shown in Table 11.

Table 11: Air Quality During Expressway Operation Expressway NOx (mg/m3) CO (mg/m3) Operation Year Peak Hour Daily Average Peak Hour Daily Average 2005 0.044- 0.071 0.030 - 0.049 2.023 - 2.741 1.612 - 2.322 2010 0.070 - 0.110 0.044 - 0.072 2.064 - 2.791 1.632 - 2.349 2025 0.103 - 0.144 0.049 - 0.098 2.114 - 2.853 2.162 - 2.377 Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

The modeling results indicate that CO concentrations will be below the limits throughout the economic life of the Project. There will be 19 receptors in 2010 and 38 in 2025, by which time NOx concentration (daily average) is forecasted by the model to exceed the standards. This represents 28 percent and 56 percent of all sensitive receptors in the Project area. Long-term air quality monitoring, described further in Paras. 77, is needed to confirm the modeling results.

45. Although air quality will be adversely affected in areas adjacent to the expressway that now have no emission sources, air quality will improve for the region as a whole. An early study1 in the northern part of the PRC showed that light motor vehicles driven 80 percent of the time at 100 km/hour (h), at 20 percent acceleration/deceleration (a likely scenario on the expressway) will reduce CO emissions by 47 percent, hydrocarbons (HC) by 48 percent, and NOx by 35 percent compared with vehicles driven 40 percent of the time at 100 km/h but 30 percent at 50 km/h and 30 percent acceleration/deceleration, as is typical of traffic on NH 318. In addition, much of the motor vehicle emissions will be moved from the NH 318 corridor to the less populous expressway area. The improved ambient air quality will benefit over 220,000 people who live along NH 318, as well as four urban counties, 15 townships, and many other sensitive areas along the existing highway.

C. Noise

1. Construction Stage

46. The main noise sources during construction are heavy equipment and trucks, which generate noise at levels from 76 dB(A) to 98 dB(A) as measured 5 m from running machines. At distances of about 40 m during the day and 200 m during the night, the noise levels are expected to fall to within the national noise standards of 70 and 55 dB(A) for day and

1 Post, Buckley International, 1994, Air Quality and Vehicle Emissions in Liaoning Province, PRC. 12 night, respectively. The noise will impact mostly construction workers and residents living within 200 m of the construction sites. In addition, the 20 schools located within 150 m of the alignment will also be affected.

47. To mitigate noise impacts, no machines will be allowed to work at night. During the day, noisy stationary machines such as concrete mixers and pug mills will be operated at least 300 m away from the sensitive receptors. With these measures, the residents living within 50 m of the Project sites, excluding those who will be relocated, will still be affected by increased noise sometimes to levels slightly exceeding the national standards. However, the impact will be limited to daytime and will be temporary. Once the construction activities stop, the noise level will be reduced.

2. Operation Stage

48. The United States (US) Federal Highway Administration’s noise model was used to forecast noise levels generated by this Project during three operation years. The national noise thresholds of 60-70 dB(A) for daytime and 50-55 dB(A) for nighttime were used as values for significant noise impact. Of the 113 sensitive receptors (78 villages, 33 schools, and 2 hospitals) along the expressway alignment, those where noise levels will exceed thresholds projected by the model are shown in Table 12.

Table 12: Number of Sensitive Receptors Where Predicted Noise Levels Exceed the National Noise Thresholds (dB(A) exceeding the standards) Operation Year Daytime Nighttime Village School/hospital Village School/hospital 2005 0 5 (0.2-0.6) 1 (1.9-5.0) 1 (0.3) 2010 3 (1.5) 10 (0.1-2.7) 16 (0.8-6.9) 9 (0.2-2.3) 2020 12 (0.3-4.8) 16 (0.1-6.3) 30 (1.2-10.3) 11 (0.9-5.7) 2025 12 (1.3-5.4) 20 (0.1-7.3) 36 (0.5-10.9) 13 (0.2-6.7) Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

The noise impact will be long term and will grow over time as traffic volume on the expressway increases.

49. Three groups of mitigation measures are planned based on the extent of noise levels over the national standards. These measures, their estimated costs, and residual impacts are described in Table 13.

Table 13: Mitigation of Noise Impact Affected Site Mitigation Measures Estimated Costs Residual Impact School Relocate Y 2,890,000 Nil School Increase the height 4,050 m2 at Reduced noise levels by 6-6.5 B(A); walls to 3 m along Y150 /m2 or Residual noise exceeds the the expressway Y608,000 total standards by 1 dB(A) Village Construct new brick 6,250 m2 at Y Reduced noise levels by 6-6.5 B(A); walls up to 3 m high 150/m2 or Residual noise exceeds the Y937,000 total standards by 4.4 dB(A) Source: Post, Buckley International, Inc., January 1998. 13

Other mitigation measures such as landscaping and excluding future development from impacted zones (200 m from Project alignments) will further reduce the noise impact. Nevertheless, the incremental increase of noise at sensitive receptors will be apparent—from rural baseline levels of around 50 dB(A) during the day and 40 dB(A) during the night, up to 70- 75 dB(A) during the day and 65 dB(A) at night.

50. Much of the through traffic and the long-distance regional traffic on NH 318, which is the existing highway connecting Chengdu with Nanchong via Suining, will be diverted to the expressway once it is complete. As a result, the noise level from NH 318 is expected to drop about 6 dB(A) from its present level, benefiting an estimated 220,000 urban/rural residents, as well as four densely populated urban counties, 15 townships, and many schools and medical centers, crossed by or located near to NH 318.

D. Water Quality

1. Construction Stage

51. Silt from disturbed soil and in-river construction activities may result in increased suspended solids in ponds and rivers immediately downstream from the expressway. Such impacts will be temporary and limited to localized areas downstream, but could affect a large portion of an adjacent water pond. Water from such ponds may no longer be safe as drinking water sources. Construction camps will generate domestic effluent at an average of 60 liters per person per day. If discharged directly into natural water bodies, the domestic effluent from construction camps could deteriorate water quality, especially in small creeks and ponds.

52. All contractors will be required to build septic tanks at their construction camps as part of their contracts, and this step should remove approximately 40-50 percent of chemical oxygen demand (COD) and 50-70 percent of suspended solids (SS). Also, contractors will be required to have sound environmental management programs during construction for the storage of hazardous materials and environmental contingency plans. Surface runoff during construction to fish and drinking water ponds will be intercepted to avoid the impact to these water bodies. To eliminate the risk to drinking safety, the villages that use affected ponds as drinking water sources will be advised to use their wells and other ponds during the construction period. The residual impact on water quality during construction will amount to short-term increases in SS concentrations in the rivers immediately downstream from the expressway with insignificant impacts.

2. Operation Stage

53. There will be five service stations along the expressway that will also include small motels. The estimated wastewater generated from each service station is about 61 m3/day. In addition, each station will have a vehicle-washing facility that will consume about 2,500-10,000 m3/day when it first opens. If discharged into the rivers, the effluent would result in increased COD, SS, and O&G in areas immediately downstream from the discharging outlets. Surface runoff from the expressway toward natural water bodies could also affect the water quality, especially of small rivers and ponds. Although other parameters are expected to meet applicable standards even after receiving the surface runoff, if runoff is not treated, total petroleum products in ponds would exceed the national standards for surface water quality and for fisheries resources by up to 12 times. 14

54. Septic tanks will be built in the five service areas as an integral part of these facilities. The cost for the wastewater systems is estimated to be Y4 million. Sedimentation tanks and oil/water separators will be built for treatment and recycling of vehicle-wash effluent at estimated costs of Y2.5 million. Long-term impacts on water quality in rivers from the service areas during expressway operation will be low after the treatment. Water quality in major rivers will be monitored during construction and operation for SS, COD, and O&G to confirm the results of the impact assessment.

E. Erosion and Silt Runoff

55. A modified US Department of Agriculture model was used to predict silt erosion. The modeling results showed that, without mitigation, the siltation load would increase over 11 times during construction, from current levels of 1,245-7,126 t/km2/year to 14,134-80,901 t/km2/year. The disturbance of soil by explosions during construction also poses risks of landslides, which could threaten the safety of the people as well as properties near the sites. The design based on the topography of the Project area calls for filling and constructing an embankment of 3-4 m for the first 20 km and more cutting than filling for the remainder of the expressway. Siltation would occur from bare embankment, filling materials, and disturbed soils from cutting. The silt runoff during construction is expected to be lost to rivers, canals, ponds, and reservoirs in the area.

56. Mitigation for siltation consists of 5 engineering measures: (i) construction of 25 20-30 m2 silt sedimentation ponds in critical locations along the construction sites; (ii) protection of silt piles; (iii) construction of slope protection structures in 38 locations where hills will be cut through for the expressway; (iv) construction of surface runoff diversion ditches in the hill cutting locations; (v) landscape of roadway embankment slopes, silt storage piles, disturbed hillside, and disturbed construction materials pits. The estimated cost of erosion control is Y380 million.

57. These mitigation measures are expected to reduce siltation by 60-70 percent during construction. The disturbance of land, and therefore the impact of siltation, will be mostly limited to the construction period. The erosion and silt runoff from the expressway alignment during operation will not be significant.

F. Bridge Construction

58. Bridge construction will reduce the cross section area of the river channels for flood discharge. As a result, water levels in the rivers upstream from the bridges will be increased by 30-50 centimeters, reducing the free board of the river dikes up to two km from the bridges during floods. The Project will have virtually no impact on flood discharge, because all major bridges are designed for 300-year floods while the dikes (built long before this Project) were designed for 30 to 50-year floods. Floods will overflow the dikes before the impacts of the bridges on the hydrology come into effect. In-water construction activities such as piling and concrete bridge pier grouting will be done in the dry season when river flows are at their lowest.

G. Sand and Gravel Extraction

59. A total of 2.5 million m3 of sand and gravel will be extracted from rivers for expressway construction. These materials will be dredged from the Huikou section of the Tou River, the Guihua section of the Fu River and the Fuxin Temple section of the Jialing River. In 15

these three sections, the river channels are widened and flows slowed, resulting in deposit of sand and gravel materials brought in by the rivers from upstream. The currently available materials from three locations are estimated to be 7.5 million m3, more than sufficient for Project needs. Since all three sections of the materials sites are very wide (up to 2000 m), the dredging will have a minor impact on the hydrology of the river. In fact, the dredging will have positive impacts, including elimination of the need for periodic dredging to control the rise of river beds and thus the risk of downstream flooding, and elimination of the need to extract gravel from land-based sources (and thus prevent the great disturbance of lands caused by this extraction and hauling of materials).

H. Coal Ash

60. The bottom ash (residue from burning coal), which has been used widely in the PRC for highway construction, including for other Sichuan highway projects, will be used as a subgrade material. Chemical analysis of the material showed that it is chemically stable and posed little risk to groundwater. In the field, groundwater samples collected near the bottom ash—subsurfaced Shanghai-Jiaxin Expressway after two years in operation showed that, except for levels of manganese, all water quality parameters were within the national drinking water standards.1 The use of bottom ash will benefit the environment by reducing the need for excavation of other filling materials and by alleviating ash disposal problems from coal-burning power plants. However, bottom ash transportation can generate airborne dust en route to the construction sites.

61. Bottom ash will be watered to 40 percent moisture and/or covered during transportation. The residual impact related to bottom ash will be insignificant.

I. Lead Contamination of Soil

62. A motor vehicle lead emission model projects that, by 2025, lead concentrations in the soil within one km of the Project alignment will rise to 34-46 mg/kg from the current baseline of about 20-23 mg/kg, through accumulated lead deposit from motor vehicle emissions. Although a 60-100 percent increase from the baseline, it will still be far below the 350 mg/kg limit set by applicable national standards.2

63. The impact of motor vehicle emissions on the soil will be insignificant. No specific mitigation measure is necessary. The impact on the soil is expected to be even less relevant in the future, as the Government has recently announced a plan to ban the use of leaded gasoline in the country by 2000.

J. Hazardous Material Transportation

64. The water bodies in the Project area, especially the four major rivers that the expressway will cross, will be exposed to the risk of serious contamination by hazardous materials in the event of traffic accidents involving these materials, which may include petroleum products, pesticides, and other chemical substances. Accidents involving trucks containing these materials could also result in explosions or fires, adversely impacting the safety of nearby residents, or of other motor vehicles and their passengers on the expressway. Using a hydraulic dispersion model, the risk for each of the rivers is projected in Table 14:

1 State Environmental Protection Administration, 1985, Drinking Water Standards, GB5749-85 2 Ministry of Communications, 1997, Specifications for Environment Impact Assessment of Highways. 16

Table 14: Risk of River Contamination From Transportation of Hazardous Materials Item Qi River Pei River Jialing River Bridge length (m) 747 264 1,258 2,315 Seriously impacted river lengtha (m) 760 15,000 140 220 Seriously impacted time (minutes) a 30 3,300 2 2 Impacted river length (km)b downstream downstream 285 downstream Impacted time (hr) b >2,000 >150 403 >400 Frequency of Occurrence (percent, by 2020) 0.189 0.067 0.234 0.431 a defined as causing fish kills and endangering the safety of humans and cattle by consumption of contaminated food. b defined as causing river quality exceeding the national water quality standards. Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

65. Planned mitigation measures include the following:

(i) Construct strong guardrails along the bridge of the Qi River, which would face the most serious consequences in the event of a truck overturning. (ii) Build an interception system on the bridge over the Qi River to intercept potential discharge of hazardous materials directly into the river. (iii) Develop safety measures for all other river bridges. (iv) Register vehicles carrying hazardous materials with highway administration stations and allow them to operate on the expressway only upon approval. (v) When accidents occur, require vehicle operators to report immediately to public security (the police) and the environmental authority and take appropriate emergency measures to minimize the potential spread of the spilled materials. (vi) Establish an emergency response team to deal with accidents involving hazardous materials. The team will involve fire departments, police, and environmental specialists. They will be trained to properly handle these accidents and to be familiar with necessary emergency measures such as prompt evacuation of nearby residents as needed. (vii) Install an emergency phone system along the expressway for prompt reporting of environmental emergencies, as well as other accidents. Post telephone numbers for the environmental emergency teams in each of the phone booths.

K. Environmentally Sensitive Areas

66. Since the Project alignment will not pass any protected areas, such as forest or critical habitats for wildlife, and the Project alignment will not isolate or otherwise block critical water sources for wild animals, Project impact on sensitive natural areas during both the construction and operation stages is expected to be insignificant.

V. ALTERNATIVES

67. Two alternative expressway alignments were evaluated at the planning stage of this Project. They differ in seven sections/locations of the proposed alignment, while the remainder expressway alignment is identical for both alternatives. The differences are summarized in Table 15. 17

Table 15: Comparison of Two Alignment Alternatives Section Location Alternative I Alternative II Km0+000 to Km33+010 33.01 km 29.32 km higher siltation during construction, need for a tunnel, and higher costs Km21+100 to Km43+510 22.41 km 21.85 km higher siltation potential longer bridge and need for a tunnel during construction higher cost need to pass a major reservoir Km69+510 to Km78+750 9.24 km 8.64 km passing through a township Km125+101 to Km135+110 10.1 km 9.05 km more impact on Guihua City longer bridge Km154+510 to Km187+710 33.2 km 39 km need for two tunnels and longer road higher costs Km114+095 to Km191+390 77.295 km 84.125 km higher siltation potential longer bridge and seven tunnels during construction higher impacts on Suining City Km114+095 to Km149+830 35.735 km 37.035 km longer bridge and higher costs Km189+710 to Km209+910 20.2 km 22.08 km closer to Nanchong city longer road and need for two tunnels higher bridge impact higher siltation potential Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

68. Alternative II would have more overall environmental impact than Alternative I. In addition, Alternative II would need to have several tunnels in its alignment, be longer overall, and be more expensive to build. Eventually, Alternative I was selected taking into account all the factors.

VI. BENEFIT-COST ANALYSIS

69. The costs of environmental protection, impact mitigation, and compensation (excluding costs for sewage treatment at construction camps, watering for dust suppression, etc., which will be borne by contractors) are shown in Table 16. The ratio of the cost for environmental protection/mitigation against the total Project cost is 14.4 percent.

Table 16: Estimated Cost for Environmental Protection/Mitigation Item Unit Quantity Rate (Y) Amount (x1000 Y) Landscape/reforestation Mu 9,149 3,333-6,667 49,430 Erosion control/drainage m2 1,995,774 380,286 Walls for noise attenuation m2 6,250 150 930 Tree compensation each 5-300 35,653 Agricultural compensation mu 25,753 4,912-6,292 198,025 Resettlement for noise alleviation m2 2,980 500 1,490 Grade separated crossings each 546 126,565 Monitoring equipment 50 433 Wastewater treatment at each 5 800,000 4,000 the service areas (including vehicle wash effluent treatment and recycling systems) 18

Personnel training person- 11 (overseas) 5,000- 1,130 month 32 (domestic) 83,000 Total 797,942 Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

70. The annual costs for environmental protection are estimated in Table 17.

Table 17: Environmental Protection Measures and Expense Estimation Item Main Work Content Annual Expense (Yuan/year) Implementation Unit Environmental 1. Daily management work 100,000 Environment Protection protection Office of Provincial management Communications Department 2. Maintenance of environmental protection 100,000 facilities Environmental 3. Monitoring for noise, air, water and auto tail 130,000 Environment Protection monitoring gas Office of Provincial Communications Department Total 330,000 Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

71. Environmental and socioeconomic benefits of this Project include reduced air emissions and noise on NH 318 as well as in the region, creating a large number of short- and long-term jobs to the local economy and improved traffic safety on NH 318. Over 220,000 people will directly benefit from the improved environment.

72. The economic cost (net of taxes and price contingencies) is estimated at Y5.31 billion ($640 million). The economic internal rate of return is 24.9 percent, and the payback period is about 24 years. The financial internaI rate of return is estimated to be 9.7 percent assuming the “base case” of medium traffic growth and a toll rate of Y0.35 per km for a car in 2005.

VII. INSTITUTIONAL ARRANGEMENTS AND ENVIRONMENTAL MONITORING

73. Environmental management for this Project will be carried out by:

(i) Environmental Protection Office, SPCD; (ii) environmental protection bureaus of the counties and regional districts involved; (iii) Chengdu-Nanchong Expressway Corporation (CNEC); (iv) Chengdu-Nanchong Expressway Construction Commanding Office (CNECCO); (v) provincial project management and operation agencies; (vi) Sichuan Provincial Environmental Protection Bureau (EPB); and (vii) various design institutes and EIA consultants and contractors.

74. The environmental responsibilities of participating agencies are defined for various stages of this Project in Table 18. 19

Table 18: Environmental Responsibilities Project Responsible Agencies/ Environment Responsibilities Stage Organizations Staff Size Design design institute 3 incorporation of mitigation measures into engineering design Design Sichuan Provincial 2 review and approval of Communications Department environmental measures Tendering Contractors Not applicable include environmental management programs in the bids Construction Contractors 1 full time supervise implementation of person each environmental measures Construction CNECCO 2 environmental monitoring and periodical environmental inspection Operation Chengdu-Nanchong 2 (planned) environmental management and Expressway Corporation environmental monitoring Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

75. There are two part-time environmental staff within the CNECCO (the agency responsible for the construction) and two planned for the CNEC (the organization responsible for the operation). The environmental monitoring will be carried out by CNECCO environmental staff during construction and by the municipal monitoring stations during operation. The monitoring stations have about 10 full-time environmental technicians each. The CNEC and monitoring stations’ environmental staff have not been involved in, and therefore lack experience with, environmental management for highway construction and operations. Training, both in the PRC and abroad, will be provided to technical as well as some management staff for environmental monitoring, monitoring results interpretation, mitigation planning, environmental policy making, and other environmental management techniques.

76. Eleven person-months of external and 35 person-months domestic training is proposed for the environmental staff. The external training will involve two out-of-country: five staff for the first one and nine for the second. The first trip will include two senior construction supervision engineers, two technicians from the Environmental Protection Office of SPCD, and one SPCD officer, while the second trip will include environmental management and monitoring, and waste control and treatment technicians. These individuals will act as primary resources for domestic training upon their return from international training for other staff in the monitoring station and the emergency response team. The total cost for the training is estimated to be Y1.13 million.

77. The proposed environmental monitoring program is described in Table 19.

Table 19: Environmental Monitoring Plan Type of Monitoring Stage Air Quality Construction Operation Locations Dusty truck roads, storage piles Liaojiachang, Huikou, Yufeng, construction sites Guihua, Mingfeng, Nanchong Parameters fall dust, TSP NOx, CO, TSP Frequency once every 10 days (fall dust) twice per year four times a year (TSP) Length of Monitoring 1-3 days 4-5 days 20

Sampling Hours 10 am and 3 pm 7 - 11 am and 2 - 5 pm Implementing Institutions municipal monitoring stations municipal monitoring stations Responsible Agency CNECCO CNEC Review agency Sichuan Provincial EPB Sichuan Provincial EPB Noise Locations Liaojiachang, Yufeng, Guihua Liaojiachang, Huikou, Yufeng, Guihua, Mingfeng, Nanchong Mingfeng, Nanchong Parameters noise noise Frequency once a month four times a year Length of Monitoring 2-3 days 3 days Sampling Hours twice a day 10 - 11 am and 10 - 11 pm Implementing Agency construction supervision firm municipal monitoring station Responsible Agency CNECCO CNEC Review Agency Provincial EPB Provincial EPB Water Quality Locations Tou River at expressway Tou river at expressway Guihua near expressway Qi river at expressway Nanchong near expressway Pei river at expressway Jialing river at expressway Parameters SS, COD, O&G, and pH SS, COD, O&G, and pH Frequency Once a month twice a year Monitoring Party Municipal monitoring stations municipal monitoring stations Responsible Agency Construction supervision office CNEC Review Agency Provincial EPB Provincial EPB Source: Environmental Impact Assessment, National Trunk Highway Shanghai to Chengdu Expressway, Chengdu to Nanchong Section.

78. The environmental monitoring results from both construction and operation stages will be submitted to the responsible institutions, or to the construction supervision office and the CNEC, which in turn, will submit the results to the Environmental Protection Office of SPCD and the Sichuan provincial EPB. The chief construction supervision office and CNEC will be responsible for reviewing the monitoring results and, if necessary, deciding on further mitigation actions during the construction and operation stages. All results will also be copied to the EPBs of each county and city involved and to the provincial EPB. These agencies/institutions may also request appropriate actions be taken for environmental mitigation as necessary.

VIII. PUBLIC INVOLVEMENT

79. The public participation program for construction of the expressway consisted of a series of meetings with local government agencies, people’s representatives, and institutions along the proposed expressway alignment; meetings with village committees; interviews with individuals; and public opinion polls. One meeting was held at Nanchong in November 1996, attended by about 40 people representing various government agencies and interested groups, and seven additional meetings were held in townships along the Project corridor between December 1996 and January 1997. Each of the township meetings attracted 20-30 people, most of whom were representatives of potentially Project-affected populations.

80. Public opinion polls included sending a questionnaire designed by the EIA team together with SPCD to the potentially affected public. Farmers, workers, government officials, and teachers were among those who responded with their opinions on the Project. Of 250 distributed, 218 surveys were returned completed.

21

81. From the results of the public meetings and completed questionnaires, the major public opinions and concerns on the Project can be summarized as follows:

(i) Over 98 percent of survey respondents indicated support for the Project and considered it a necessity to promote economic development and poverty reduction in the region. (ii) Concerns were expressed that, if the full financing for the expressway were not already in place, it would be better to wait until it is. If money needed to be raised from the public, it would be better to have a share-holding structure. (iii) Compensation for land acquisition and resettlement should be distributed promptly. (iv) There should be sufficient grade-separated crossings at the densely populated areas and near the schools. The alignment should be at least 200 m away from schools. (v) There should be good management of expressway operation so that the impact on the environment will be minimized.

82. The issues raised by the public through the public participation program have been appropriately addressed during the EIA and mitigation planning. Specific mitigation measures have been designed to avoid or minimize the adverse impacts of most concern to the public, with specific implementing time tables and budgets. Those beyond the scope of the EIA, such as the resettlement plan and protection of existing infrastructures during construction, have been conveyed to relevant authorities.

IX. CONCLUSIONS

83. The fully fenced, limited-access Chengdu-Nanchong Expressway will lower transportation cost and reduce travel time. As part of the national highway network, the expressway will significantly improve infrastructure, making the region more attractive to further development and outside investments. The construction and operation of the Project will bring a large number of direct and induced employment opportunities to the local economy.

84. From the regional perspective, the Project will significantly reduce motor vehicle emissions as a result of improved motor vehicle engine efficiency when operating on the expressway. As much of the traffic on NH 318 will be diverted to the expressway, noise levels on NH 318 are expected to be reduced by about 6 dB(A). An estimated 220,000 people in four congested urban counties, 15 townships, and many more villages, as well as schools, hospitals and other sensitive receptors near the existing highway will directly benefit from the improved air quality and acoustic environments.

85. The adverse impacts generated by the expressway will be avoided or reduced to insignificant levels by taking appropriate mitigation and compensation measures. Such measures include: a reforestation and landscape program along the Project alignments; compensation for about 59 percent green field lost to the Project; construction of 639 grade- separated crossings under the expressway to mitigate agricultural field and rural community severance; construction of wastewater treatment facilities in service areas; increases in the height of residential property perimeter walls to attenuate increased noise levels; construction of settling ponds and interception ditches for siltation control; development of sound environmental programs during construction to mitigate such impacts as noise, dust, and silt runoff; and 22 establishment of environmental emergency teams to minimize the impacts of motor vehicle accidents involving hazardous materials.

86. In order to assure the protection of the environment from anticipated adverse impacts and to decide whether to take further action for impact mitigation, noise, air quality, and water quality will be monitored during construction and operation. The monitoring stations will be located in sensitive areas such as villages, schools, hospitals, and rivers along the Project alignment.