INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC4020 Public Disclosure Authorized Date ISDS Prepared/Updated: 12/23/2008 I. BASIC INFORMATION A. Basic Project Data Country: China Project ID: P108627 Project Name: CN - Nanning Urban Environment Task Team Leader: Takuya Kamata Estimated Appraisal Date: March 16, 2009 Estimated Board Date: July 7, 2009 Managing Unit: EASUR Lending Instrument: Specific Investment Loan Public Disclosure Authorized Sector: Sanitation (50%);Solid waste management (25%);Sewerage (25%) Theme: Access to urban services and housing (P) IBRD Amount (US$m.): 150.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 150.00 150.00 B. Project Objectives [from section 2 of PCN] Public Disclosure Authorized The project development objective is to assist the Nanning Municipality in arresting further deterioration of water quality in selected rivers by expanding coverage of wastewater treatment services, carrying out environmental rehabilitation of river courses, and providing technical assistance for development of the integrated mini-river basin management systems. This objective would be achieved by: i) supporting wastewater management through the expansion of treatment capacity for the Jingnan Wastewater Treatment Plant, and the development of new wastewater collection and treatment facilities in five county seat towns; (ii) the rehabilitation and environmental improvement of tributaries of Yongjiang River, including the Fenghuang River, the Liangqing River and Lengtangchong River; and (iii) an innovative technical assistance activity on integrated mini-river basin management to achieve the sustainable social and economic development and improved water ecological environment in the complete Nanning basin area. Public Disclosure Authorized C. Project Description [from section 3 of PCN] The total estimated cost is US$245.21 million, with US$100 million in IBRD financing. The PMO and Project Leading Group will supervise the three implementing agencies. Component i: Integrated Urban and County Towns Wastewater Treatment: The project will assist the selected urban district and counties to improve living conditions and promote urban development by reducing pollution loads in the urban environment. The component will consist of two main parts, (i) the establishment or expansion of the wastewater treatment plants and related facilities; and (ii) sewerage network rehabilitation and/or extension; in the Jiangnan Urban District, the project will complete the Phase II of the Jiangnan Waste Water Treatment Plant (WWTP), for which the first phase was financed under the Guangxi Urban Environment Project. This sub-project will enlarge the capacity of the existing treatment facility to 480,000 m3/day to meet the increased wastewater collection rate in Jiangnan catchment area, covering the projected population of approximately 1.2 million by the year 2012, and reducing the discharge of untreated sewage into the Yongjiang River. The treatment process is expected to be the modified Sequencing Batch Reactor process. The project will also introduce wastewater treatment capacity in five county towns that currently discharge untreated wastes in urban watercourses, reducing the flow of contaminants into the rivers. This sub-project includes construction of associated facilities and sewerage systems as well as main collectors for a total capacity of 102,000 m3/day to serve about 70% of the projected total population of some 500,000 in the five county-seat towns in Wuming County, Binyang County, Heng County, Shanglin County, and Mashan County. The implementing agency for all activities in this component is the Guangxi Green City (Nanning) Water Affairs Company Ltd, which implemented construction of the first phase of the Jiangnang WWTP under the Guangxi UEP. Wastewater tariff was planned to be increased from current tariff of RMB0.5 per cubic meter to RMB0.8 in November 2008. The municipality intends to further increase the wastewater tariff when the proposed facilities are commissioned. Component ii. River Rehabilitation: This component would improve the storm-water drainage system, restore ecosystems, and improve water quality along a total of 13.05 km of the Fenghuang, Liangqing and Lengtangchong Rivers. The initial proposals from the client include: stormwater/sewer interceptors;stormwater-discharging canals; water replenishment conveyer; control gates; river course rehabilitation; regulating lakes; weirs and embankment improvement. Implementing agencies for this component are the Xiangsihu Investment Company Ltd., and the Yongjiang Dike Construction and Development Company Ltd. of Nanning City. Component iii: Technical Assistance: This component would provide technical assistance for integrated mini-river basin management to assure future approaches that would mitigate non- point source pollution and industrial waster pollution. D. Project location (if known) The Nanning municipality is the capital of Guangxi autonomous region, China, located at 22°49â²N 108°19â²E, and covers a total area of 22,293 km². Nanning is composed of six counties and an urban area (itself composed of six urban districts). The project will be located in the seat town of five of the six counties (Wuming, Mashan, Shanglin, Binyang, and Heng County; excepting Long'an County), as well as the Nanning urban area. The Guangxi Autonomous Region is located in the southwestern part of China, covering 236,700 km2, and bordering four provinces (Yunnan to the west, Guizhou to the north, Hunnan to the northeast, and to Guangdon the southeast), Vietnam to the southwest, and the Gulf of Tonkin to the south. E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN] The Project is a continuation of the Bank’s engagements with the Guangxi autonomous region, specifically following on the success of the Guangxi Urban Environment Project. The project received a “Satisfactory” rating for addressing both social safeguard and environmental issues, receiving a national award for model resettlement. Several of the municipal officials currently serving at the municipal Project Leading Group participated in the previous project from the municipal side, and several others served on the WB Project Management Office during the previous project. This institutional capacity should provide confidence in both the borrower’s commitment to the project and the capacity for Safeguard Policies. F. Environmental and Social Safeguards Specialists Ms Chongwu Sun (EASCS) Mr Chaogang Wang (EASCS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X The Guangxi Regional Environment Scientific Research Institute has been selected to prepare eight sub-EA/EMPs and the Guangxi Academy of Environmental Protection Science & Research, to prepare a consolidated EA/EMP and summary EA. The institutes are preparing individual reports for each of the county WWTPs, the Jiangnan WWTP, the Fenghuang River, and a combined report for the Liangqing and the Lengtangchong Rivers; a consolidated EA/EMP and summary EA will then be finalized. Resettlement Action Plan The Nanning Urban Environment Project includes 8 sub-components, including 5 wastewater treatment plants and sewer networks in 5 counties, the second phase of Jiangnan wastewater treatment plant, environmental improvement of the Fenghuang River, and embankment improvements of the Liangqing River and Lengtangchong River. It was agreed that three sub-resettlement action plans and one summary RAP will be prepared: one sub-RAP will cover the 6 wastewater treatment systems, one will cover the Fenghuang River, and a combined report will cover the Liangqing and the Lengtangchong Rivers. A Resettlement Policy Framework will also be prepared to guide work design modifications/finalizations that are done during project implementation. Finally, the project team will conduct a retroactive, due diligence review of the upstream land acquisitions conducted by the government. Social Assessment It was agreed that a social assessment is needed for the project, in order to (i) identify potential social factors (such as self-supply water source users and management of wastewater Safeguard Policies Triggered Yes No TBD sources) and averse social impacts (such as livelihoods of landless farmers), suggest appropriate means to avoid or mitigate them, and inform potential stakeholders about the proposed project (eliciting information from them that may be useful for project design); (ii) carry out a survey of the willingness to pay and affordability in the five counties which would be introduced to a wastewater tariff system through the Bank financed project; and (iii) conduct free, prior and informed participation with affected ethnic groups, elicit views and perceptions from intended project beneficiaries regarding proposed project activities, and ensure broad support be obtained from minority communities. It was agreed that one overall SA report will be prepared. The Guangxi Regional Environment Scientific Research Institute has been selected to prepare eight sub-EA/EMPs and the Guangxi Academy of Environmental Protection Science & Research, to prepare a consolidated EA/EMP and summary EA. The institutes are preparing individual reports for each of the county WWTPs, the Jiangnan WWTP, the Fenghuang River, and a combined report for the Liangqing and the Lengtangchong Rivers; a consolidated EA/EMP and summary EA will