E-341 Annex 16 of PIP Report VOL. 3 For China Water Conservancy Project by Using WB Loan Public Disclosure Authorized Environment Assessment Public Disclosure Authorized Public Disclosure Authorized Shenyang Loan Management Office Shenyang Project Management Office June,2000 Public Disclosure Authorized 1. Preface 1.1 Project origin In order to develop water saving irrigation undertakings. alleviate the contradiction of water shortage and increase the yield of grains, vegetable and fruit. the Ministry of Water Resources decide to apply for 77 million US$ loan from the World Bank to be used in Hebei. Beijing, Shenvang and Qingdao four provinces and municipalities. Xinchenzi, Yuhong, Sujiatun. Dongling, Xinmin. Liaozhong, Kangping and Faku eight districts and counties (cities) totally 38.9 thousand ha cultivated land were selected as the project areas of Shenvang Municipality. These project areas are located in the alluvial plain of Liao River and Hun River where the water resources are relatively short and water saving irrigation has become an urgent issue for development. The water facilities are in good conditions and the staff has certain experiences in water saving irrigation construction in the project areas. The implementation of the project will further improve the conditions for agricultural production. increase the agricultural yield and farmers income and facilitate the sustainable utilization of water resources and the sustainable development of agriculture. However, the adoption of water saving irrigation will change the distribution of water resources and the related agricultural measures for yield increase will also exert impact on local water resources utilization and the water, soil and ecological environments, therefore, it's very necessary to assess the impact of the water saving irrigation project on the environment. Entrusted by the Comprehensive Agricultural Development Office and led off by the Institute of Water Resources and Hydropower Research, the Water Resources Bureau of Shenyang Municipality assist to undertake the compilation of the environmental impact assessment report. 1.2 Assessment basis, criteria and classification 1.2.1 Assessment basis "Environment protection regulations of construction project" No. 253 issued by the State Council of the People's Republic of China "State technical guidelines for environmental impact assessment"(HJ/T2.1-2.3-93) "Environrmental impact assessment regulation of water resources and hydropower project"(SDJ-302-88) Project proposal book of Shenyang Water Conservation Project "(1998.10.13) "Water environment finction region of Liaoning Province" "PIP report of Shenvang Water Conservation Project" -'Guidelines for environmental impact assessment of the World Bank" 1.2.2 Assessment criteria 'Standard for irrigation water quality"(GB5084-92) The fourth classification water qualitv standard in "Quality standard for groundwater"(GBl/TI4848-93) The fifth classification water quality standard in "environinent quality standard for surface water"(GB3838-88) 1.2.3 Assessment classification The assessment classification of the project was determined as B according to the "guidelines for environmental impact assessment of the World Bank" and the "state technical regulations for environmental impact assessment" and in association with the project situations. 1.3 Environment protection objectives The main environment protection objectives are: ' Maintaining the balance of water resources supply and demand and can't result in the descent of groundwater level for the implementation of the project; Adopting effective measures and applying fertilizer and pesticide appropriately, ensure not to increase the pollution of groundwater and other environment. 1.4 Assessment procedures Shows in chart 1.1 E n7U *| u 0| 4u Analysison the influenceto socialeconomic development Analysison the influenceof the constructionprocess to the environment | An'alysisAE on the influenceof pesticideand fertilizer to waterenvironment 1 E 2 |1 0 . > InC W ~~~~~~~~~~~~~~~~~~~~00 E E C] E [ : E 1 _ Analysis on the influenceof irrigation worksto groundwaterquali CL 4- o E 2E u-. -| I>Analysison the influenceofir eigationworks to groundwaterlevel E ,n~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~U C0 >U v7 vE _ _ _ - 0 CA 'A * P.Investigationand assessment on the statusof guroundwaterenvironment U, _- s~~ u I~~nvestigationadassmn on the statussoilndenvironmentof _ U~~~~~~~~~~ U hi~~~~~~ Preparationof somiekey environmientalissues Projectgeneral situations 2. Project 2.1 Generals 2.1.1 Project characteristics The project is rehabilitationand extension project, i.e. undertake canal lining in paddy field, sprinkler irrigation in dry field and micro-sprinklerirrigation and pipe irrigation in vegetable field. The projectwill be constructedfrom 2001 and completedin 2005. 2.1.2 Projectscope Eight districts and counties(cities) totaled 95 townships involved in the project and the planed irrigated area is 580 thousand mu. Of which, 27 thousand mu in Dongling district, 57.4 thousand mu in Yuhongdistrict, 50 thousand mu in Sujiatun, 58 thousand mu in Xinchengzi, 100 thousand mu in Xinmin city, 103 thousand mu in Liaozhong county,93 thousand mu in Faku county and 95 thousand mu in Kangpingcounty. Their geographicallocations are detailed in the sketch map of Shenyang Municipalitywater saving project areas. The construction component of the project include irrigation system and management system of water saving irrigation project, agriculture, forestry, agro-machinery, environment protection, SIDD development, construction of MIS svstem and institutionalsupport and development.There are totally 7.73 thousand ha paddy field, 18.83 thousand ha dry field, 9.11 thousand ha vegetable field and 3.23 thousand ha cash crops in the project areas. Their total agricultural output value is 744 million RMB yuan. The relief is flat, the communicationis convenient,the water resourcesare in good conditions,the plots are concentrated,the economicfoundations are strong and the masses have capacity for funds collectionin the project area and are in conformnity with the selectionprinciples of project area. 2.1.3 Project objectives The overall objectives of the project are establishingand improving the agricultural irrigation system and the high efficient agricultural productive service system and improving the ecological environment and agricultural productive conditions in the project area and achieve the followingobjectives: * increasingwater use efficiency; • increasing agriculturalproduction and farmer's income; * ensuring the sustainabledevelopment of agriculturalproduction. 2.1.4 Project selection criteria In line with the requirements of the World Bank and CPMO, ensuring the successful complement of the project and achieving the overall objectives, the project selection criteria is: * That the key water engineering is equipped with facilities and has enough water sources for developingirrigated agriculture; 4 * That has great potentials for agricultural production and the water resources are wasted much, but the water balance can be maintained: * That local governments and farmers have higher enthusiasms. enough counterpart funds, capacity for funds collection and irrigation facilities; * That the transportation is convenient and the market is complete: * That the agricultural service system is sound; * That can avoid the adverse impact on young crops compensation for involuntary resettlement and temporary land occupation. 2.1.5 Project investment and program approach The total investment of the project is 7.84474 billion RMB yuan (amount to 94.515 million US$), out of which, 37 million US$ from the World Bank loan. 39.159% of the total investment. 4.77374 billion RMB yuan from local counterpart funds, approximately 61.85% of the investment in fixed assets. According to the agreement reached by the World Bank and MWR, program approach will be used in the project which will be completed in five years. 15% will be completed in the first year. 25% will be completed in the second. third and forth year and 100/%will be completed in the last year. 2.2 Project component The project components include water conservancv. agricultural support and service, forestry and environrmental protection and institutional support and development according to local conditions. The details are provided as follows: -Facilitating the conveyance of irrigation and drainage works, extending, rehabilitating and newly constructing water source works and irrigation systems, expanding appropriate water saving irrigation techniques and increasing the assurance factor of irrigation water and extending paddy field area through the saving water volume; U Undertakingsoil improvement, increasing soil fertility, improving soil structure through land leveling, deep plowing, reusing stalks in field, applying organic fertilizer and appropriate fertilizing, increasing soil capacity for moisture retention. reducing soil non-beneficial evaporation and achieving the goal of saving water and increasing yield; * Strengthening the construction of shelter forest and monitoring system for plant diseases and insect pests; * Strengthening the construction of environment monitoring system and improving the ecological environment in the project areas; * Facilitating rural extension service system and seed production system and strengthening science and technology extension and farmers training; * Extending SIDD pilot and promoting the reform of irrigation management system;