1 INTRODUCTION 1.1 the Purpose of The

E2270 Public Disclosure Authorized Henan Yellow River Ecological Livestock Demonstration Project of World Bank Loan Credit Environmental Impact Assessment Public Disclosure Authorized (Final draft) Public Disclosure Authorized Hohai University Public Disclosure Authorized September 2009 (EIA registration B certificate No: AI9090080700, agriculture, forestry, water conservancy types) Executive Summary Yellow River basin is an integral part of stream of the river. The basin is used for diverting flood, holding flood and sand sedimentation, local communities also rely on it for livelihoods. To minimize environmental pollutions caused by medium and large livestock farms (farm/park), Henan province is taking US$ 80 million World Bank Loan to support Henan Yellow River Ecology Livestock Project. The project comprises existing and new 589 farms in 30 counties (city, district) in 8 prefectures. There are three components under the project: capacity building of public institution, environment management of existing and new farms, project management and monitoring & evaluation. The total cost of the project is estimated at RMB 1,273,238,600 (US$ 160 million). The land area occupied by the project is 36,017.9 mu, out of which, 11,469 mu is newly acquired by lease. The acquired lands are not classified as prime farmland and none is included in the prime land protection program. None of the livestock farms are located at or in proximity of sources of water, nature reserves, or historical sites. Distance between new farms and residential area is longer than 500 m. The project area has a continental monsoon climate between the subtropical zone and temperate zone. Its climate is characterized with transition from plain to hills running from east to west, thus the winter is cold and dry, spring is dry and windy, summer is hot and rainy. The project area is located in Yellow River basin and old course of Yellow River. Most of the basin is beach formed by sedimentation of sand, it is low lying, the basin has two narrow ends and a wide middle; the trench, depression and stream are pervasive there; the old course of Yellow River used to be the river bed of it, it is flat with slow hills and depressions. Henan is a large livestock producer of the country. Livestock industry is one of the pillar industry of rural economy and one of important sources of incomes for farmers. In 2008, the total meat output of this province amounts to 5.8508 million tons, accounting for 10% of the total of the country. Currently, most livestock farms do not have adequate environmental protection facilities. Sewage and manure collection facilities are not well established, and the surrounding areas are polluted due to disposal of untreated manures and wash water. According to the survey, amount of COD, NH3- and TP discharged by he existing farms amount to 7740.7 t/a, 2580.2 t/a, and 2222.1 t/a, respectively. To address these issues, 7 livestock production models are developed in the Feasibility Study Report, which includes 500 dairy cows farm, 500 beef cattle farm, 5000 pig farm with bio-fermentation beds, 500 dairy cows farm with organic fertilizer production, expanding 100-head dairy cow farm, expanding 200-head dairy cow farm, expanding 200-head beef cattle. The manure of these farms will be transported manually to manure storage pads, where they will be treated or processed into organic fertilizer, then will be applied into crop land; the urean and sewage will be collected and discharged into the sewage tank, then will be treated and applied into the crop land. This EIA report will comply with the environmental protection requirements of the World Bank and China. As the project is focus on the improvement of livestock farm infrastructures ii and environment management, in accordance with the agreement reached by the Bank‘s pre-appraisal mission and Provincial Environment Protection Bureau, no full environment impact assessment will be undertaken, whereas the Bank is more interested in a comprehensive and practical environment management and monitoring plan (EMMP). The findings of EIA indicate that implementation of the project will have positive impacts on environment and improve the environment. However, in case that location of livestock farms is not appropriate, or mitigation measures are not taken, project activities will have potential negative impacts and undermine the sustainability of the project. The project will have short-term and partial impacts on the environment during the stage of construction. The potential environment impacts include: impact of land acquisition on vegetation, noise, dust and trash of construction sites. If the measures recommended by the EIA report are implemented, the negative impacts will be minimized. The negative impacts of the project will have on environment and human health when it is in operation is the pollution of odour, sewage, solid waste, and the impacts on human health. When the mitigation measures recommended in 7.2.2 of the Report are taken, these negative impacts can be minimized or avoided. Hui is the only ethnic minority that participate the project and are subject to the impacts of the project. Hui population is located in Yangzhuang village, Huizu town of Fengqiu county and Shuiyunzhuang village, Lilin town of Jiyuan county, the total of them are 2,283. Full consideration has been given to impacts on different ethnic nationalities by the project. The project will not have any impacts on the relations between different ethnic nationalities, religion, culture and norms. The EIA report includes a detailed environment management and monitoring plan and an environment management institution and training plan. Meanwhile, in accordance with Chapter 7- nutrients balance, 10% of the livestock farms will be sampled for monitoring and evaluating pollution control of the project when it is in operation. The report concludes that livestock farms‘ pollutions under the project can be minimized in an effective way, provided the waste treatment plans and mitigation measures recommended in the report can be implemented. The implementation of the project can improve rural living and production conditions and level of ecology conservation, and develop a harmonious relation between human being and the nature. The findings of the EIA report concludes that the project, if fully implemented, while will have no significant negative impact, it will improve quality of life and environmental condition of the animal park and neighbouring areas through implementation of proposed animal park waste management activities. Due to significant potential positive environmental impact of the project, the EIA team recommends that the Bank and Chinese authorities at all level support the project and allow for its speedy implementation. iii Preface The floodplain of Yellow River in Henan province is an important agricultural and natural resource in Yellow River watershed. It is not only the areas for flood attenuation, drainage, discharge and desilting, but it is also the major and highly productive resource that is used by the local inhabitants in all aspects of agricultural production. In order to improve the aquatic environment of the floodplains of Yellow River, promote sustainable development of ecological livestock-raising, and to improve natural environment through reducing nutrient loading of surface and groundwater resources, Henan province encouraged the development of all forms of livestock development fro piggery to poultry to beef and dairy cattle development. In 2002, ―green dairy demonstration area construction plan in the floodplains of Yellow River in Henan province‖ was issued with great attention (No.75, 2002, the general office of Henan People‘s Government) to support ecological and green development of dairy industry. According to the plan, Henan Animal Husbandry Bureau (AHB), Development and Reform Commission (DRC), and Department of Finance (DOF) requested for an 80 million US dollars loan from the World Bank to develop the unused areas along Yellow River floodplain and its old river course in 30 counties (city and district) in Zhengzhou, Kaifeng, Luoyang, Xinxiang, Jiaozuo, Jiyuan, Puyang and Shangqiu and build the program of ecological animal husbandry industrial zone which integrates seeding, stock keeping and processing. In 2005, this plan was approved by State Council and was listed in alternative project plan funded by World Bank loan. In the beginning of 2007, approved by Provincial Government, Provincial Development and Reform Commission, Department of Finance and Animal Husbandry Bureau issued project declaration guide and finished project organization declaration. In September, 2007, because of the policy material changes for World Bank to loan to Chinese agriculture, Provincial Development and Reform Commission, Department of Finance and Animal Husbandry Bureau put forward the project adjustment scheme according to the latest policy of World Bank and the requirement of national department concerned. The project after adjustment becomes the public welfare project mainly with public finance and public product and its target is to reduce the environment pollution caused by the large and medium animal husbandry production (farm and plot) in the floodplain of Yellow River in Henan province. The World Bank loan will be paid by government at all levels and at the same month, the project adjustment scheme was approved by Provincial Government (No.159, 2007, general office of Henan People‘s Government). In September, 2008,

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