INTEGRATED SAFEGUARDS DATASHEET
APPRAISAL STAGE
I. Basic Information
Date prepared/updated: 06/12/2006
Report No.: AC2238
1. Basic Project Data
Country: China
Project ID: P081776
Project Name: CN--Second Guangdong Pearl River Delta Urban Environment Project
(Foshan and Jiangmen)
Task Team Leader: Thomas L. Zearley
Estimated Appraisal Date: May 23, 2006
Estimated Board Date: November 21, 2006
Managing Unit: EASUR
Lending Instrument: Specific Investment
Loan
Sector: Sewerage (70%);Flood protection (30%)
Theme: Other urban development (P);Pollution management and environmental health
(P)
IBRD Amount (US$m.):
100.00
IDA Amount (US$m.):
0.00
GEF Amount (US$m.):
0.00
PCF Amount (US$m.):
0.00
Other financing amounts by source:
BORROWER
87.00
87.00
Environmental Category: A - Full Assessment
Simplified Processing
Simple []
Repeater []
Is this project processed under OP 8.50 (Emergency Recovery)
Yes [ ]
No [ ]
2. Project Objectives
To reduce water pollution in the Pearl River Delta originating from Foshan and Jiangmen
municipalities through a package of key initiatives, including wastewater treatment and
sludge disposal, industrial pollution control monitoring, sediment removal from
waterways, and river bank clean up and restoration.
3. Project Description
Foshan Components:
(a) Wastewater Management. Expansion of Zhen?an wastewater treatment plant
(Phase III) by 50,000m3/d, and construction of interceptors, secondary sewers, and
pumping stations;
(b) Wastewater Sludge Treatment and Disposal. Construction of a 400 tons/day
capacity centralized sludge treatment and disposal facility at Nanzhuang to treat sewage
from five wastewater treatment plants in Chancheng district;
(c) Flood Protection and Embankment Rehabilitation. Improvements of embankment
along north side of Fengjiang River for improved flood protection and environmental
conditions in areas along the river bank, and development of an urban management
information system;
(d) River Water Quality Improvement. Dredging of sediment from Foshan Waterway
and Foshan Creek and transfer, treatment and disposal of the sediment in a sanitary
landfill; construction supervision services; construction of four automatic water quality
monitoring stations; and development of a water environment management information
system;
(e) Institutional Strengthening and Training. Technical assistance for (i) project
management services including contract management and monitoring of safeguard
implementation; (ii) evaluation of designs in bids for the central sludge treatment and
disposal component (iii) study on environmental impact on growth of green GDP; and (v)
training and study tours.
Jiangmen Components:
(f)
Wastewater Management. Expansion of Wen Cheng Sha wastewater treatment
plant by 50,000 m3/day (to increase capacity to 200,000 m3/day), and construction of
interceptors, secondary sewers, pumping stations, and sludge treatment and disposal
facilities; improvements in water quality monitoring comprising purchase of three in-line
monitoring sets and one mobile set;
(g) Institutional Strengthening and Training. Technical assistance to enhance
operational and business management capacities of the new Jiangmen Bi Yuan
Wastewater Company.
4. Project Location and salient physical characteristics relevant to the safeguard
analysis
The project includes two municipalities (Foshan and Jiangmen) located in Pearl River
Delta (PRD) region of south China. Foshan municipality is situated in south-central
Guangdong province, adjacent to Guangzhou city. It has a total population of 5.6
million, and has a long history as a cultural and industrial center in south China. Its
economic growth has been particularly impressive recently, with GDP expanding by 19
percent in 2005. Foshan?s political leadership wants urgently to improve environmental
conditions in the city. Currently, only 32 percent of the wastewater in Foshan is treated,
and the lack of an adequate wastewater treatment system is increasing pollution to the
PRD rivers and creating public health concerns. The highly-polluted waters running
through the city, especially in the Foshan river, are smelly and foul, and are discouraging
investments in urban upgrading along the river banks.
Jiangmen municipality is located west of Foshan. It has a population of 1.3 million,
with 62 percent of the population engaged in agricultural activities. While Jiangmen?s
economic development is somewhat behind other cities in the PRD region, its economy
has started to grow rapidly (around 12 percent GDP increase last year). Jiangmen ranked
high in the Bank's recent survey of investment climate competitiveness of Chinese cities,
in part because of its attractive environmental conditions. But, continuous efforts will be
needed to protect the environment, as several rivers running through the municipality
have become highly polluted. At present, about 32 percent of the wastewater in
Jiangmen?s town center is treated, and a new wastewater company has just been
established to manage services.
Foshan and Jiangmen municipalities have requested Bank assistance in reducing river
water pollution and improving living conditions in areas along the river banks. Both
municipalities have had their project proposals reviewed and endorsed by Central
Government (NDRC). Each municipality has hired local consultants to prepare
engineering feasibility studies, resettlement plans, and environmental assessments. This
work is being overseen by two different international consulting firms (Sogreah for
Foshan, and Metcalf and Eddy for Jiangmen) funded by donors (France and USA).
At a broad strategic level, Bank involvement will facilitate work started under the
ongoing PRD 1 Urban Environment Project (mainly for Guangzhou) on inter-municipal
cooperation and improvement in wastewater management planning and financing. At the
project level, the Bank's role is to ensure that the lessons learned from previous
experiences in the PRD region and elsewhere are reflected in the design, planning and
management of the proposed investments. Attention would be paid to reviewing options,
selecting least cost solutions and appropriate technologies and practices in wastewater
and sludge management. The Bank would also give emphasis to improving the
sustainability of the wastewater services through the introduction of proper institutional
arrangements and tariff policies. And, the Bank would look for ways to enhance the
urban planning and economic competitiveness of the two cities, and strengthen the
regulatory framework for public-private partnership. All of these aims are consistent
with the objectives of the China Country Assistance Strategy related to environmental
protection and infrastructure and urban development.
5. Environmental and Social Safeguards Specialists
Mr Andres Liebenthal (EASES)
Mr Daniel R. Gibson (EASSD)
Mr Songling Yao (EASSD)
Mr Dahong Li (EASTR)
6. Safeguard Policies Triggered
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Forests (OP/BP 4.36)
Pest Management (OP 4.09)
Cultural Property (OPN 11.03)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37)
Projects on International Waterways (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
Yes
X
No
X
X
X
X
X
X
X
X
X
II. Key Safeguard Policy Issues and Their Management
A. Summary of Key Safeguard Issues
1. Describe any safeguard issues and impacts associated with the proposed project.
Identify and describe any potential large scale, significant and/or irreversible impacts:
Environment:
The project, which consists mainly of wastewater collection and expansion of treatment
plants (both cities), sludge treatment, river dredging and river embankment (Foshan
only), is classified as Category A under OP 4.01. Environmental Assessment (EA) has
been prepared with the assistance of two international consulting firms for each of the
project components by Zhongshan University and Changjiang Hydraulics Design
Institute for Foshan and Jiangmen, respectively. The EA concludes that the project will
bring significant positive impacts to the natural and socioeconomic environments
participating cities. The EA has not identified serious adverse environmental impacts
which cannot be effectively mitigated to acceptable levels.
More specifically, the project will intercept a large volume of wastewater currently
discharged directly to the rivers flowing through the urban centers, improved water
quality to the designated surface water quality standards (from worse than Category V to
designated Category V for Foshan waterways and from Category V to Category IV for
Jiangmen and Tian Sha rivers in Jiangmen), increased navigation capacity in Foshan
waterways (from 200 ton to 300 ton ship capacity), improved environmental aesthetics,
improved flood control capacity, appreciation of land values in areas near and around the
rivers, contribution to community and economic developments, and enhanced livable of
the cities, their economic competitiveness, and the standard of living for the
cities'residents.
Major potential adverse impacts will mostly occur during the project construction phase.
Construction of the sewer network and wastewater treatment plants, river embankment
and sediment dredging will involve land occupation, airborne dust, noise, soil erosion,
discharges and/or disturbance to the rivers, and traffic and urban service disruptions. The
dredging component will involve odor from the sediment dredging and handling
activities particularly in the urban areas, sediment transportation, dewatering, leachate
treatment and final disposal. It is noted though that a detailed and systematic sediment
sampling program has demonstrated that the sediment is not hazardous and can be
disposed of at a properly designed sanitary landfill.
Impacts during the operational phase of the project will involve noise and odor in the
immediately adjacent areas of the wastewater treatment plants and sludge treatment
facility, as well as activities around the sludge disposal landfill, which will be dedicated
cells in an operating sanitary landfill.
Resettlement:
As land acquisition was initially expected to occur in both Jiangmen and Foshan, both
cities were requested to prepare a resettlement plan (RP). During project preparation,
however, Jiangmen dropped two proposed investment components due to local concern
about a shortage of counterpart funds. Siting for the remaining component - expansion of
the Wen Cheng Sha wastewater treatment plant-requires only a transfer of unoccupied
and unutilized state-owned right-of-way. As there will be no land acquisition, structural
demolition, or other resettlement-related impacts, no RP is required.
In Foshan, land is required for construction of a wastewater treat plant, river dredging
and river bank rehabilitation, and for sewer construction. For Foshan components, land
acquisition will total 188 mu (12.5 hectares), including 157 mu (10.5 hectares) of stateowned land, and 30 mu (two hectares) of collective land. Land acquisition will affect 10
households, 41 enterprises and 18 shops, with 1,980 affected people in total. Another 494
mu (33 hectares) of land will be acquired temporarily during implementation.
2. Describe any potential indirect and/or long term impacts due to anticipated future
activities in the project area:
The project would not have important adverse indirect or long term social impacts.
Significant environmental and social benefits are expected over the long term, directly
and indirectly, in the project areas, as described above.
3. Describe any project alternatives (if relevant) considered to help avoid or minimize
adverse impacts.
Alternative dredging, transportation and drying methods, sediment dewatering and
disposal sites, sludge disposal processes, sludge treatment facility and disposal sites,
pumping station sites, wastewater treatment designs, effluent discharge locations, and
river embankment designs have been identified during the EA with the objective to avoid
or otherwise minimize adverse environmental and social impacts and to maximize project
benefits. The EA teams have worked with the project planners/owners and the feasibility
study teams to compare and evaluate alternatives and optimal alternatives were selected
based on the avoidance of or least adverse impacts on the environment and communities
as well as engineering and economic considerations for the least cost solutions. Both
project cities have also considered the without project scenario as an alternative.
4. Describe measures taken by the borrower to address safeguard policy issues. Provide
an assessment of borrower capacity to plan and implement the measures described.
Environment:
The EA documents including EA reports, EMPs and a city-wide EA Summary for
Foshan have been prepared, incorporating Bank's comments during project preparation
and pre-appraisal, and found to be satisfactory. All individual EA reports have been
reviewed and cleared by expert review panels convened by the project approval agencies,
Guangzhou Environmental Protection Bureau and official. Local approvals of all EA
reports are expected in May 2006.
The EA covers the project description, baseline environmental conditions,
environmental benefits and project justifications, analysis of alternatives, potential
environmental impacts and mitigation measures both at the construction and operation
stages, environment management plans, public consultation and information disclosure.
The EMP specifies the environmental management and supervision mechanisms and
institutional arrangements, mitigation measures, environmental monitoring plans, training
plans and estimated budget allocations necessary for implementing the mitigation
measures, monitoring plans and ways to strengthen client capacity. Key environmental
mitigation measures during construction include dust suppression; erosion control; use of
low noise construction equipment/machinery, proper arrangement of construction
activities to avoid sensitive time and locations, traffic management during construction,
pollution control design and environmental management for sediment disposal site, and
use of proper operational procedures by the contractors during construction. Major
mitigation measures during operation include noise and odor control at the wastewater
treatment plants, sludge treatment facility and pumping stations.
The owners of each project components will either have environmental specialists on
staff or engage specialists/consulting firms during project construction and/or operation
as may be appropriate to supervise, inspect, coordinate and manage environmental
performance, to ensure implementation of EMP and compliance with regulatory and
project requirements for pollution control and environmental protection. The supervision
will be particularly enforced in sensitive locations or for specific activities, such as
dredging and river embankment in the urban built up areas, sediment disposal site, etc.
Each project cities have also developed detailed environmental monitoring plans. These
plans basically have two tiers. The first tier involves daily and regular monitoring by
contractor and environmental supervision staff through visual observations and simple
apparatus such as hand hold noise meters. This would ensure timely identification of
environmental issues during construction so that appropriate mitigation and corrective
actions can be taken promptly. The second tier comprises periodical compliance
monitoring by professional environmental monitoring stations. This monitoring will
determine compliance status of construction and operation activities. In particular, the
sediment dredging and sludge treatment and disposal components have a follow up
monitoring program during the construction or operation phases to further confirm the
findings that the materials are not hazardous.
Considering the lack of environmental knowledge and monitoring methods of
contractors and construction supervision companies in general, a mandatory training of
all contractors and construction supervision companies have been developed. The
training will be held prior to the commencement of construction and will be attended by
at least one senior management staff and one environmental staff from each of the
contractors and supervision companies. The training programs will include project EA
results, introduction of EMPs, technical background about mitigation measures, detailed
methodologies for the daily monitoring, mitigation and corrective action designs, and
reporting requirements. The cities will also provide training to environmental staff of
PMO and individual project owners as part of capacity building. The training programs
will include environmental regulations, policies and standards, environmental
management, and general pollution control and environmental management technologies.
Resettlement (Foshan only):
Compensation for assets: Compensation for land and structures is based on relevant
national and provincial regulations, and has been found by Bank staff to be consistent
with the Bank's replacement cost criterion. Compensation for collective-owned land is
set at RMB 65,000 per mu. Structural compensation varies, depending on structural type
and market prices. Compensation for fixed attachments and for relocation-related costs
are also established in the RP. Compensation for temporary land use has been integrated
into the budget for civil works.
Livelihood development: Loss of collective-owned land will not have a severe impact
on local residents, who derive less than 10 percent of their incomes from agriculture.
Compensation for the collective-owned land will be paid to the village committees for
public use. The ?resettlement subsidy part of the land compensation will be paid to the
households actually affected by loss of land. Those losing access to land also can receive
job training from the township government. Jobs with a monthly salary of RMB1,000 or
more are readily available in an area of labor shortages and annual GDP growth of about
19 percent. Among the 41 affected enterprises, only seven need to be relocated. In
addition to compensation for assets and relocation costs, the RP includes a transitional
subsidy covering any lost wages or profits during relocation. These enterprises are
expected to relocate in nearby industrial parks or other commercial urban areas. All
workers are expected to maintain their present employment with enterprises or shops. If
any workers were to lose employment because of the relocation, they would be informed
three months in advance, or would be paid an extra month's salary as a remedial measure.
The remaining 34 enterprises are only partly affected and will continue operations at their
present site. The 18 small shops are operating in rented space, which is readily available
in the area. They will receive compensation for relocation costs.
Household relocation: The 10 affected households will relocate only after fully
compensated, based on contracts reached with resettlement offices. Compensation rates
are sufficient to allow affected households to obtain replacement housing of equal or
better quality in a booming local real estate market..
RP implementation arrangements: The RP contains a detailed resettlement budget and
funding plan developed on the basis of a complete asset inventory and agreed
compensation rates. The total resettlement budget is estimated at RMB 251 million,
which is integrated into the project total cost. To implement the RP, the Foshan PMO has
set up a resettlement office to manage land-related issues. As Foshan lacks relevant
experience, the Bank mission and Hohai University have provided training sessions on
how to prepare and implement the RP, which itself provides for specific training
programs and future budget requirements for training staff at the city level. Moreover, the
provincial PMO has substantial experience in resettlement for Bank-financed projects,
and has agreed to assist Foshan as necessary on resettlement implementation.
RP monitoring arrangements: The Foshan PMO has designed internal and external
monitoring mechanisms for RP implementation. Internal monitoring will be conducted
through the Foshan PMO itself, and will focus primarily on physical progress.An external
monitor will be engaged to report on broader aspects of RP implementation every six
months. The RP describes monitoring purposes, responsibilities, indicators,
methodologies, procedures and reporting requirements.
5. Identify the key stakeholders and describe the mechanisms for consultation and
disclosure on safeguard policies, with an emphasis on potentially affected people.
Environment:
Two rounds of public consultation have been conducted in both project cities. The
consultation was primarily through questionnaire surveys supplemented by public
meetings of key affected people and other stakeholders. In total, 632 people in Foshan
and 149 people in Jiangmen, mostly project directly affected, have been consulted for
their opinions and concerns about the project. In addition, special meetings or interviews
were held with concerns expressed by the public and other stakeholders already
incorporated in the project EA and preparation of the EMP.
Project information including major anticipated adverse environmental impact and
mitigation measures has been disclosed to the public through public notices in local
newspapers and radio in each of the two project cities. The draft final EA reports and
EMPs have also been made available at the community centers (neighborhood committee
offices of the project areas) and on websites.
Resettlement:
Local governments, community and village leaders, the affected households, and
affected enterprises and shops were consulted in census and asset inventorying processes,
and on finalization of the project location and schemes, compensation rates, relocation
arrangements and livelihood restoration measures. The RP contains procedures for
grievance redress. The draft RP has been disclosed to the public, as announced in a local
newspaper. The final draft will be disclosed in May 2006.
B. Disclosure Requirements Date
Environmental Assessment/Audit/Management Plan/Other:
Date of receipt by the Bank
04/30/2006
Date of "in-country" disclosure
02/18/2006
Date of submission to InfoShop
05/04/2006
For category A projects, date of distributing the Executive
Summary of the EA to the Executive Directors
Resettlement Action Plan/Framework/Policy Process:
Date of receipt by the Bank
04/30/2006
Date of "in-country" disclosure
02/18/2006
Date of submission to InfoShop
05/04/2006
* If the project triggers the Pest Management and/or Cultural Property, the
respective issues are to be addressed and disclosed as part of the Environmental
Assessment/Audit/or EMP.
If in-country disclosure of any of the above documents is not expected, please
explain why:
C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the
ISDS is finalized by the project decision meeting)
OP/BP/GP 4.01 - Environment Assessment
Does the project require a stand-alone EA (including EMP) report?
If yes, then did the Regional Environment Unit or Sector Manager (SM)
review and approve the EA report?
Are the cost and the accountabilities for the EMP incorporated in the
credit/loan?
OP/BP 4.12 - Involuntary Resettlement
Has a resettlement plan/abbreviated plan/policy framework/process
framework (as appropriate) been prepared?
If yes, then did the Regional unit responsible for safeguards or Sector
Manager review the plan?
The World Bank Policy on Disclosure of Information
Have relevant safeguard policies documents been sent to the World Bank's
Infoshop?
Have relevant documents been disclosed in-country in a public place in a
form and language that are understandable and accessible to project-affected
groups and local NGOs?
All Safeguard Policies
Have satisfactory calendar, budget and clear institutional responsibilities
been prepared for the implementation of measures related to safeguard
policies?
Have costs related to safeguard policy measures been included in the project
cost?
Does the Monitoring and Evaluation system of the project include the
monitoring of safeguard impacts and measures related to safeguard policies?
Have satisfactory implementation arrangements been agreed with the
borrower and the same been adequately reflected in the project legal
documents?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
D. Approvals
Signed and submitted by:
Task Team Leader:
Environmental Specialist:
Social Development Specialist
Additional Environmental and/or
Social Development Specialist(s):
Name
Date
Mr Thomas L. Zearley
Mr Andres Liebenthal
Mr Daniel R. Gibson
05/12/2006
05/15/2006
05/16/2006
Mr Glenn S. Morgan
06/09/2006
Mr Keshav Varma
06/09/2006
Approved by:
Regional Safeguards Coordinator:
Comments:
Sector Manager:
Comments: