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Updated Environmental Assessment Report

This report has been submitted to ADB by the Ningxia Hui Autonomous Region Government and is made publicly available in accordance with ADB’s public communications policy (2011). It does not necessarily reflect the views of ADB.

Summary Environmental Impact Assessment Project Number: 38660 October 2011

People’s Republic of China: Ningxia Integrated Ecosystem and Agricultural Development Project Prepared by Ningxia Hui Autonomous Region Government (Written by Environment Specialist Prof. Dr. Muyi Kang) for the Asian Development Bank (ADB).

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ABBREVIATIONS

ADB — Asian Development Bank CITES — Convention on the International Trade in Endangered

Species CSC — construction supervision company EIA — environmental impact assessment EMI — environmental monitoring institute EMP — environmental management plan EMMS — environmental monitoring and management specialist EPB — Environmental Protection Bureau FDN — Forestry Department of NHAR FYP — Five-Year Plan GEF — Global Environment Facility IA — implementing agency IEE — initial environmental examination IEM — integrated ecosystem management IUCN — International Union for Conservation of Nature and Natural

Resources (World Conservation Union) IWRM — integrated water resource management NFD — Ningxia Finance Department NHAR — Ningxia Hui Autonomous Region NGO — nongovernment organization NXK — Ningxia Xixia King Grape Industry (Group) Co. Ltd PMO — project management office PPMO — provincial project management office PMS — performance management systems PPTA — project preparatory technical assistance PRC — People’s Republic of China SEIA — summary environmental impact assessment SEPA — State Environmental Protection Agency SIEE — summary initial environmental examination WRD — Water Resources Department

WEIGHTS AND MEASURES ha — hectare (1 ha = 15 mu) km — kilometer m2 — square meter m3 — cubic meter mu — land division (1 mu = 667 m2) ton — 1,000 kg

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CONTENTS

I. INTRODUCTION 1

II. PROJECT DESCRIPTION (IN BRIEF) AND SUMMARY OF THE PROPOSED CHANGES 1

III. EIA ADDED FOR PROPOSED PROJECT CHANGES 4

IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ACCORDING TO ADB’S EIA STANDARDS 5

V. ENVIRONMENTAL MANAGEMENT PLAN 8

VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 8

VII. FINDINGS AND CONCLUSION 9

APPENDIXES: 10

APPENDIX 1 UPDATED KEY ENVIRONMENTAL CONCERNS AND ENVIRONMENTAL SAFEGUARD REQUIREMENT 10

APPENDIX 2 UPDATED SUMMARY ENVIRONMENTAL MANAGEMENT PLAN 12

APPENDIX 3 UPDATED ENVIRONMENTAL MONITORING PLAN 21

A. INTRODUCTION 21

B. SUMMARY OF THE CHANGES REQUIRING AN EMP REVISION 21

C. MONITORING REQUIREMENTS AND INDICATORS 26

D. INSTITUTIONAL ARRANGEMENTS 26

E. ENFORCEMENT ARRANGEMENT 27

F. SUMMARY 27

APPENDIX 4 EIA REGISTRATION FORMS 28

I. INTRODUCTION

1 The Ningxia IEM project was originally classified under ADB environmental safeguards as Category A due to potential significant potential environmental impacts arising from construction of the Xixia Canal extension. Under the agreed change in project scope dated March 29th 2011, the subcomponent of Xixia Canal construction was cancelled at the request of the Government, removing the only Category A subproject. As part of the change in scope the activities of six Category B subcomponents were slightly modified, while the new subproject supporting the Xixia King winery equipment is classified as a Category B according to ADB safeguard policy and as Category C in the Chinese EIA standards. After the change in scope, the project comprises 11 Category B and five Category C subcomponents. 2 The scope of the following updated EIA report is limited to those subprojects that were revised or added during the change in scope to the Ningxia Integrated Ecosystem and Agricultural Development Project. The original EIA is appended for reference.

II. PROJECT DESCRIPTION (IN BRIEF) AND SUMMARY OF THE PROPOSED CHANGES

3 The project has four components: (i) building IEM capacity and project management, (ii) land and water resource management, (iii) improving rural livelihoods, and (iv) conservation and tourism.

The outcome of the project is to introduce an integrated ecosystem management (IEM) approach that provides sustainable livelihoods for the population of the project area. 4 The Ningxia Hui Autonomous Region Government is the executing agency through NFD, under which a Project Management Office (PMO) had been established. The PMO is responsible for environment management during the implementation. Under the proposed project change in scope, the Project Implementation Agencies (PIAs) include Ningxia Finance Department (NFD), Ningxia Agriculture Reclamation Bureau (NARB), and Yinchuan Municipality Government (YMG). 5 A summary of the proposed changes for the IEM project (in which the proposed changes are highlighted) is provided in Table 1.

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Table 1: Summary of the Proposed Changes for

Ningxia integrated Ecosystem and Agricultural Development Project

(adopted�from�the�App�2�revised)�

Original Scope Proposed Changes

Component 1: IEM Development and Project Management

(i) Strengthen the policy, legal and regulatory framework of NHAR to enable the implementation of IEM principles, which will include:

(a) water resource zoning; (b) spatial planning for land and water use according to

ecosystem capability; (c) creation and management of the HPCMA; (d) control of pesticide and fertilizer usage to reduce

non-point source pollution; (e) water pricing mechanisms to support water trading in

NHAR; (f) management of wetlands; (g) revenue sharing arrangements for enterprises (h) operating cultural or tourism sites; (i) community-based tourism; (j) small farmer contractual farming arrangements; and (k) legal recognition of rural farmers associations and

water user associations, including contract services.

No change.

(ii) Provide training and institutional development through “on the job” training, and study tours, in various areas including wetland conservation, biodiversity conservation, conservation agriculture, land use planning, integrated water resources management and ecotourism. Skills development and vocational training will also be provided.

No change.

(iii) Support the development of information systems and monitoring by developing the operational capacity of the NARG IEM Information Center and the sharing of information and monitoring data between relevant agencies.

No change.

(iv) Strengthen project management of the project by providing the PMO with additional staff and technical experts in the areas of procurement, finance management, work planning and reporting.

No change.

Component 2: Land and Water Resource Management

(i) Preparation of the IWRMP which will assist in developing a water policy and guide water use and investment, and the development and implementation of a spatial planning framework which will assist in defining management zones, environmentally sensitive areas, conservation areas and land use options.

The IWRWP has been done under the national water resource program. The funds savings will be used for the water balance modeling and integrated water resource management study in Shahu Lake.

(ii) Three CA demonstration sites for small holdings which will provide demonstrations and training to farmers and trainers in IEM techniques including, crop residue mulching, minimum tillage, crop rotations, improved pest and plant nutrients management. Fertilizer management demonstrations will also be provided in order to develop fertilizer management practices.

No change.

(iii) Design and construction of part of the Xixia Canal The Xixia Canal and on-farm canals for

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including, 15.1 km of inverted siphon past the Xixia Tombs, 16 km of the main canal, control and monitoring stations, 21.3 km on new secondary canals, 118 km of secondary canals to be lined, and lining of 632 km of laterals and on farm distribution.

irrigation will be undertaken under the government water resource programs and will be removed from the project scope. The loan savings will be reallocated to water-saving irrigation of grape plantation under NARB. (Refer to the EIA registration Form; see the Appendix 1)

Component 3: Improving Rural Livelihoods

(i) Expand beef, dairy and grape production by (a) expansion and upgrading of beef herds and the

construction of a “Halal” certified slaughter house, (b) division of existing dairy herds and the provision of

cooperative milking platforms with breeding and technical support

(c) conversion to perennial fodder production systems requiring less water and soil disturbance,

(d) conversion of up to 670 hectares of flood irrigated land to small contract grown vineyards using water saving irrigation technologies, and

(e) the use of biogas, bio-fertilizer and water recycling technology.

(a) Central beef cattle breeding herd will be

increased from 750 to 1500 heads. Beef slaughterhouse has been completed using government funds and the loan savings will be used for fodder mechanization and conservation agriculture equipment.

(b) Five distributed dairy farms will be regrouped into one farm. The fodder base will be increased by 300 ha using funds saved from NAB’s fodder program.

(c) No change. (d) The vineyards will be increased to 2,400

ha using funds saved from NAB’s vineyard program and YMG’s tree farm development.

(e) No change.

(ii) Address sustainable land management through alternative production systems, including perennial crops and reduction of water and agro-chemical use. Training will be provided for up to 3,000 individuals in sustainable land management.

Reduce planting areas from 1,700ha to 260ha and the loan savings will be reallocated to the higher-value horticultural production under NARB.

(iii) Develop two blocks of land into perennial crops such as jujube and alfalfa together with beef feedlot, contract fodder and sustainable live stock production systems for small holders in poverty affected areas. The project will also develop a plant propagation business and processing and market distribution services to smallholders. Vocational training will be provided to rural communities to allow them to seek off-farm employment.

Shift the implementation project activities from NAB to NARB. Vocational training and infrastructure agriculture have been done using government funds and will be removed from the project.

Component 4: Conservation

(i) At Lake Shahu, provide for re-vegetation, viewing galleries and platforms, aquaculture activities, tourist accommodation with waste water treatment system and a scientific education center.

Reallocate funds savings from the completed aquatic plant using government funding to the education center. Delete the holiday houses and use savings for the increased cost of the education center.

(ii) At Lake Yuehai, provide for commercial development of aquatic plants, a processing plant for aquatic vegetarian food, ecological rehabilitation, water supply and heating system and re-greening of wetland landscapes.

Replace aquatic poultry plant and use loan savings to develop eco-tourism facilities.

(iii) At Yinchuan, (a) create and manage the HPCMA, (b) provide for fencing and patrolling of certain areas west

of the new Xixia Canal to prevent illegal grazing, antiquity collection and poachers,

(c) establish an IEM ecological demonstration center to support biodiversity conservation and management of endangered species and impact on tourism, and

(d) the preparation and implementation of an integrated

(a) No change. (b) No change. (c) No change in scope. GEF funds will be

reallocated to develop IEM demonstration area and PMO will coordinate the activities.

(d) No change.

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tourism management plan across all tourism sites.

(iv) At Yinchuan wetlands, (a) preparation and implementation of a management

planning and monitoring system which provides for recreation use of the wetlands and sustainable use of water resources

(b) rehabilitation of vegetation, (c) upgrading of public awareness program, (d) water quality management investments, including

biological water treatment measures, and (e) increase activities of the Mingcui training center to

include capacity development of staff of wetland management agencies.

(a) No change. (b) Wetlands conservation of Tonggui, Yueya,

Sanding, and Baohu lakes have been done or will be undertaken by government funds. The loan savings will be reallocated to the public education and exhibition facilities in Shahu and Mingcui lakes.

(c) No change. (d) No change. (e) No change.

(v) At Yinxi wetlands, implementation of a program for conservation of residual habitats and improve the quality of wetlands including restoration of approximately 8,000 hectares of natural grasslands and protection of linked wetlands on each side of the Xigan Canal with water fowl habitat.

No change.

CA = conservation agriculture, HPCMA = Helan Mountains Conservation Management Area, IEM = integrated ecosystem management, IWRMP = integrated water resources management plan, NAB = Ningxia Administrative Bureau, NARB = Ningxia Agriculture Reclamation Bureau, NARG = Ningxai Hui Autonomous Region Government, NHAR = Ningxia Hui Autonomous Region, PMO = project management office, YMG = Yinchuan Municipality Government.

III. EIA ADDED FOR PROPOSED PROJECT CHANGES

6 The project’s subcomponents that have been changed and/or newly added have undergone the EIA process, according to the environment protection laws and regulations of the PRC (Environmental Protection Law of the People's Republic of China, 1989; Classification catalogue for management of environment impact assessment on construction project, Ministry of environmental protection of PRC, Order No. 2, 2008). 7 Three EIA Registration forms have been processed for the project’s proposed changes in scope (the EIA by going through the Registration Form process approximates the Category C, or B sometimes, of the ADB’s EIA standard process). These Forms are: “the Registration Form of EIA to the 2400ha Vineyard with Water-saving Irrigation System within NARB” (Subcomponent Implementation Unit: NARB); “the Registration Form of EIA to the Construction of IEM Demonstration and Training Center in Eastern Piedmont of the Ningxia Helan Mountain” (Subcomponent Implementation Unit: Integrated Project Management Office of the NFD); and “the Registration Form of EIA to the Public Education and Exhibition Facilities in Mingcui Lake” (Subcomponent Implementation Unit: Wetland Management Office of Yinchuan Municipality)1. (Refer to the Appendixes for detailed translation of those Forms.) 8 According to the findings of the EIA assessments in the three EIA Forms, the environment impacts are considered minor and the impacts assessed not to be serious, since implementation and related construction activities are small in scale and scope, and located within the original project implementation region. For example, the subcomponent may

1 As for the subcomponent, the Public Education and Exhibition Facilities in Mingcui Lake, assessed in this RF, there are no apparent negative impacts envisaged, judging from the ADB’s standards illustrated in the Environmental Assessment Guidelines (ADB, 2003), as well as in the Environmental Safe Guard Policy Statement (ADB, 2009). It involves only in some retrofitting and decoration activities.

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involve buildings and facility constructions in, but none will discharge large quantities of solid waste (except for small amount of construction rubble wastes), generate large amount of waste water (except for some waste water as construction and sanitary sewage spilled), or emit air pollutants. All solid and/or liquid wastes will be treated or disposed properly and timely at a daily interval. The noise generated by construction activities will be minor and be minimized through some protective measures such as using noise-shield techniques. The subcomponents will play important roles in education, demonstration and training, sustainable production, and protected ecological functions. There is expected to be water resources saving and economic returns to local people, as well as provide ecological benefits to the environment.

IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ACCORDING TO ADB’S EIA STANDARDS

9 For Component 1: Building IEM Capacity and Project Management The component mainly supports capacity building and institutional development. The IEM center constructed under this component is located on the western periphery of the Yinchuan Plain as part of a public private partnership management model. No apparent negative environment impacts anticipated except for small amount of construction rubble wastes during the construction period. Mitigation measures for the construction activity include, properly collecting and transporting the rubble and wastes at a daily interval to the designated landfill site for end disposal; and minimizing the construction noise through noise-shield techniques. 10 For Component 2: Land and Water Resources Management Under the proposed changes, the Xixia Canal and on-farm canals for irrigation will be removed from the project scope. The loan savings were reallocated to water-saving irrigation of grape plantation under NARB (See also Component 3). With the proposed changes, this component includes two Category C subcomponents which are land management demonstrations and conservation agriculture. No environmental impacts are envisaged. Instead, the component will produce significant environment benefits through promoting land management and reducing land degradation. 11 For Component 3: Improving Rural Livelihoods Under the agreed changes, the implementation of hi-tech agriculture activities were reallocated to NARB. NARB’s Beef slaughterhouse has been completed using government funds with loan savings to be used for fodder mechanization and conservation agriculture equipment. Central beef cattle breeding under NARB will be increased from 750 to 1500 heads. Five distributed dairy farms will be regrouped into one farm. The fodder base will be increased by 300 ha. The vineyards will be increased to 2,400 ha with support for drip irrigation and winery equipment (See also Component 2). The planting areas of Yinxi alternative livelihoods will be reduced from 1,700 ha to 260 ha. It must be mentioned here that this project is implemented in a sub-arid to arid region, where there is no agriculture if no irrigation and/or no enough water resources. From this sense there is a need to make an analysis of regional water resource balancing, since large scale of vineyard expansion means huge water resource consumption.

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The original cultivated lands including vineyards within the region generally used the traditional flood irrigation techniques and systems, by which the water consumption averaged at a level of 750 cubic meter per mu per year (i.e. 750 m3/mu/a, or 11,250 m3/hm2/a). Under the proposed subcomponent changes, however, the new vineyards will apply the water-saving drip irrigation technologies that substantially improve water use efficiency and only consume water resource at the level of 300~350 m3/mu/a, or 4,500~5,250 m3/hm2/a. Moreover, considering the planting areas of Yinxi will be largely reduced, the real increment of vineyard lands that need to provide extra irrigation water is only:

2400-667-(1700-260) = 293 ha. where 2400 ha is the new vineyard plantation area that will be implemented by the NARB, 667 ha the original area implemented by the NARB, 1700 ha the original area implemented by Yinxi, and 260 the new area implemented by Yinxi. Thus, the total new increment of water resource consumption is balanced at:

300~350×15×293 = 1.32~1.54×106 m3/a. This figure means the total water consumption increment in whole project implementation region is within the scope of original water resource allocation plan, since the lands proposed for developing new vineyards are partly converted from the original cultivated lands, where have already facilitated with some irrigation systems but prevailed over by traditional flood irrigation technology, and partly from land reclamation. Accordingly, the extra new increment of water consumption from the former does not exist because the lands have had water quota already, and from the latter will be balanced out by the former, through the large amount of water saved from their applying water-saving drip irrigation technologies in subcomponent implementation processes. According to the original SEIA, special analysis was conducted in the Chinese EIA report on the impact of beef cattle and cow breeding subcomponents on groundwater quality, to ensure compliance with the relevant local planning source protection zone for drinking water of Yinchuan City, and other water bodies. Subcomponents for beef production and dairy farm development will have animal husbandry (cattle and cow) and processing at various scales. The solid wastes of cattle and cows have potentially negative environmental impacts. Significant volumes of waste will also come from the slaughtering and processing house. The dried dung technique will be used in the breeding farms to mitigate the adverse impacts. The collected waste will be used as compost on farm land. Before composting, waste will be sterilized in order to mitigate air quality and sanitation impacts. Some solid waste from breeding operations will be collected and treated in a small anaerobic biogas digester, and/or then used as artificial farmyard fertilizer on farmland owned by the participating households, or to be sold to farmers living nearby. Sewage (including urine) collected after washing of the breeding farm and processing house may cause environmental pollution. The larger suspended solids, floating debris and sand will be separated and composted as described above. For subcomponent C1 central breeding and processing sites, the waste water will be discharged to the drainage pipeline and then to the sewage treatment plant or tanks. The sludge and residues will be composted. After treatment, water quality will meet the Grade II standard 10 and can be used for irrigating trees and grassland in the subcomponent area. The remaining treated water will be discharged into the natural drainage system. Sewage from contracted household cowsheds will be washed from the cowsheds (together with any cattle dung) and then treated by an anaerobic digester in the biogas generation and utilization system. Construction of the biogas system should be completed in a timely manner, in keeping with the subcomponent implementation schedule. After treatment, the residue will be

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used as compost fertilizer and the liquid for irrigation of farmland or yards. Biogas will supply energy for the households. The grape processing waste will have potential for minor negative impacts that are localized, short-term, non-significant, and can be fully mitigated. Impacts include improper disposal of plant residues such as grape stems and skins, as well as boiler slag from the processing plants. The plant residues (e.g. grape stems and skin) can be collected and sold as livestock feed, and/or be composted as organic manure. Boiler slag will be collected and used for road repairs, and/or sold as raw material for cement making. There is no adverse impact from the reduced use of irrigation by cropping adjustment for fodder, grapes, horticulture, etc. The water-saving irrigation programs are expected to result in substantial improvements to water use efficiency and reduced water logging of soils. 12 For Component 4: Conservation and Tourism With the proposed changes, wetlands conservation of Tonggui, Yueya, Sanding, and Baohu lakes have implemented using government funds. The loan savings will be reallocated to the public education and exhibition facilities in Shahu and Mingcui lakes. The holiday houses in Lake Shahu will be removed. The poultry processing in Lake Yuehai will be deleted to protect water quality. Lake Shahu, Lake Yuehai and Yinchuan wetland subcomponents are designed to be implemented involving wetlands scattered across the Yinchuan plain. Conservation areas and critical biodiversity may be affected if sites are placed too close to significant breeding or nesting grounds and critical wetlands. To minimize the impacts the subcomponent sites are carefully selected based on consideration of environmental factors (e.g. water and air resources, and distance to the significant breeding or nesting grounds, or critical wetlands). Rapid biological surveys will be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or species of economic importance. There is the potential for water quality reduction in critical watersheds resulting from excavation for extension of open water areas or linkage. All excavation works will be confined to the dry season, and frequent monitoring of water quality undertaken. There is potential for displacement of significant flora and fauna exists for subcomponents Lake Shahu, Lake Yuehai and Yinchuan wetland. Conservation areas and critical wildlife may be affected if sites are placed too close to significant breeding or nesting grounds, critical wetlands, etc. Construction will not be sited adjacent to or near (within 1 km) of significant breeding or nesting grounds, critical wetlands, etc. The potential impacts are minimal, as rapid biological surveys have been undertaken prior to the engineering design at all sites, and the distance requirements have been followed for all subcomponents. During operation, tourism activities in lakes, especially under the pressure of ever-increasing tourists, may have the potential to result in: (i) impacts on any locally significant flora and fauna, which may be displaced for development of sites; (ii) loss of wetland and vegetation for trail development and as a result of on- and off-trail activities; (iii) displacement of wildlife as a result of the presence of tourists; (iv) excessive use of local resources, in particular water; (v) localized water pollution from solid waste, sewage, and litter; and (vi) localized water and air pollution from vehicles and power boats. Mitigation measures include: (i) tourism planning and environmental guidelines developed during the earlier phase of subcomponent implementation should be strictly followed in implementing tourism projects; (ii) no development of tourism physical infrastructure (buildings, restaurants and other service facilities, roads, etc.) is allowed in sensitive core areas of the wetland; (iii) no development of physical tourism infrastructure (buildings, restaurants, and other service facilities, roads, etc.) is allowed close to significant breeding or

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nesting grounds, critical wetlands core zone; (iv) similar activities not related to infrastructure that support ecologically appropriate wetland tourism development; (v) all solid waste, sewage and litter will be cleaned and collected, and properly treated. In addition, a plant will be built to treat residential waste water and the treated effluent will irrigate landscaped areas. Wetlands drainage activities may have the potential to impact the water balance. A detailed water requirement analysis and study based on water monitoring will be carried out during the implementation stage. Improved water allocation should ensure that the wetland’s water balance is maintained. Potential impacts to water quality, flora and fauna from the use of pesticides and fertilizers for shelter belt plantation, fodder field extension, greenhouses, aquaculture, and horticulture are minimal or nonexistent. According to the survey conducted in the subcomponent area, the adjusted cropping and cultivation system needs less irrigation and fertilizer than the existing rice and wheat cropping system. Pesticide and fertilizer applications will be minimized as much as possible through the use of integrated pest management and site-specific nitrogen management technology, and pesticides will only be applied by workers who have received training in their storage, handling, use, and disposal. The Project is investing heavily in farmer education and demonstrations regarding the financial benefits of targeted fertilizer use and integrated pest management technologies. The development of the IEM demonstration area may have potential negative impacts to soil, water, air, and noise during construction. However, the construction duration will be short and the construction scope will be limited, which is mainly limited to retrofitting existing equipment and processes and proximity to the nearest residential area being more than 1 km, the noise impact will be minor. During project construction, construction activities would generate certain dust pollution in the project area. However, due to small scale and short-term construction activities, the dust pollution will be insignificant. Proper mitigation measures will be undertaken to reduce dust emission, such as sealing of building materials, covering of transportation materials (e.g. earth and solid wastes), and flushing of vehicle wheels. The main solid waste from the proposed project includes waste materials and excavation soil. Proper mitigation measures will be undertaken, such as cleaning up waste in a timely manner, transport using covered vehicles or closed containers, reuse of surplus materials, and dispose the waste in the landfill.

V. ENVIRONMENTAL MANAGEMENT PLAN

(See Appendixes: Appendix 2 Updated Summary Environmental Management Plan)

VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

13 As the subcomponents have minimal impacts on the environment according to PRC laws and regulations, public consultation is not required. However, as part of the project preparation the following consultations were undertaken: (i) The provincial government is the executing agency for the project. Provincial Development and Reform Commission and Provincial Environmental Protection Bureau are the partners for the project, and have been participating in all steps for the project design and subproject selection. They are also the main constituent entities of the PMO; (ii) Experts from industrial associations and research institutions have been invited to site visits or engaged as advisors for the project; and (iii) Consultations were conducted to gauge support for the project from local communities, which will be direct beneficiary groups.

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VII. FINDINGS AND CONCLUSION

14 The results of safeguard screening indicated that 11 subcomponents were classified as environmental category B and five as category C. The proposed scope change will significantly reduce the adverse environmental impacts as anticipated at appraisal. The EIAs that have been conducted are consistent with ADB’s Safeguard Policy Statements. 15 The overall environmental benefits of the project are expected to be significant. With the application of the recommended mitigation measures, the potential negative environmental impacts associated with the Project can be reduced to the point that no significant residual environmental impacts will occur.

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ppendix 1

Appendixes:

Appendix 1 Updated Key Environmental Concerns and Environmental Safeguard Requirement

(Under Proposed Changes, adopted and revised from the original Appendix 2)

OUTPUT Subcomponent and ADB Environmental Category (A, B or C)

Code Key Environmental Concerns

Environmental Safeguard Requirement

Environmental Management Plan

Implementing Agency

Building IEM Institutional Arrangements (C)

A-1 Nil MOFFDO

Component 1: Institutional Arrangements for IEM Application Effective Projec

Management (C) t A-2

Nil MOFFDO

Spatial Planning and IWRM Planning (C)

B-1 Nil MOFFDO

Land

Component 2: Integrated Land and Water Resource Management Management

Demonstrations (C) B-2 Nil MOFFDO

Conservation Agriculture (C) B-3 Nil MOFFDO

Water-saving Irrigation of grape plantation (B)2

B-6

IEE/SIEE EMP needed Ningxia Agriculture Reclamation Bureau

A: State Farm (Expanded dairy farm and grape

uction)beef, prod

Component 3: Improving Rural Livelihoods 3

Ningxia Agriculture Reclamation Bureau

Beef Production (B) C-1 Livestock waste IEE/SIEE EMP needed

Dairy Production (B) C-2 Livestock waste IEE/SIEE EMP needed

Vineyard and Winery (B) C-3 Waste water IEE/SIEE EMP needed

2 This subcomponent is added to replace the original subcomponents of construction of Xixia Canal (B-4) and Irrigation system (B-5), which greatly reduces the Environmental Impact Assessment requirement from ADB Environmental Category A down to Category B or C. 3 These subcomponents are not essentially changed in scope, but a little bit enlarged in scale or size, thus they remain in the Category B as from the ADB’s EIA requirement.

Appendix 1 11

B: Yinchuan Municipality Yinxi Alternative Livelihoods (B)

C-4 Livestock waste IEE/SIEE EMP needed YM

C: Hi-technology and Ecological Agriculture (B)

C-5 IEE/SIEE Ningxia Agriculture Reclamation Bureau

Yinchuan Wetland (B) D-1 Wetland, biod. IEE/SIEE EMP needed YM

Sha

Component 4: Conservation and Tourism hu Lake (B) D-2 Wetland, biod. IEE/SIEE EMP needed NARB

Yuehai Lake (B)

D-3 Wetland, biod. IEE/SIEE EMP needed NARB

Yinxi Conservation Program: Wetland, biod and plantings

IEE/SIEE

YM

Yinxi Wetland D4

Botanical Garden D5

Grassland set-aside (B) D6 IEE/SIEE

Helanshan Piedmont Conservation Management Cultural Relics

D7 Protection of cultural relics

Xixia Tombs D8

Helankou Rock Carvings D9

Jiangjun Tower D10

Helanshan Nature Reserve (B)

D11

OUTPUT Subcomponent and ADB Environmental Category (A, B or C)

Code Key Environmental Concerns

Environmental Safeguard Requirement

Environmental Management Plan

Implementing Agency

ADB = Asian Development Bank, EIA = environment impact assessment; EMP = environmental management plan, MOFFDO = Ministry of Finance Foreign Debt Office, SEIA = summary environment impact assessment; SIEE = summary initial environment examination; YM = Yinchuan Municipality

Appendix 2 Updated Summary Environmental Management Plan

SUMMARY ENVIRONMENTAL MANAGEMENT PLAN FOR THE OVERALL PROJECT

Responsibility Subject Sub- component

Codei

Potential Negative Environmental Impacts

Scope Magnitude Duration Proposed Mitigation Measures Imp. Sup.

Screening of potential environmental impacts of components and subprojects.bii

Component A (including subcomponents A-1 and A-2) and subcomponents B-1, B-2 and B-3 of Component B are classified as Category C, with no physical adverse environmental impacts. All other subcomponents of Component B and C classified as Category B are listed below with the potential for negative environmental impacts, which are mainly a result of the following activities: construction, planting, cultivation of aquatic products, livestock husbandry, agroprocessing, tourism development, cultural relics protection, farm land loss and resettlement. The anticipated environmental impacts and mitigation measures are summarized below. The various significant adverse environmental impacts are identified for each subcomponent; these are detailed in the relevant SEIA or SIEE.

1. Design Phase

B-6 Site and location

Poor project design may result in environmental and economic costs.

S L Lt Mitigation measures such as balancing local water resource allocation will be incorporated into the project design, especially in selection of well drilling locations.

Design institute

EPB PPMO

D1 D2 D3 D4

Conservation areas and critical wildlife may be affected if sites are placed too close to significant breeding or nesting grounds, critical wetlands, etc.

G M Lt To minimize impacts, the subcomponent sites will be carefully selected, based on consideration of environmental factors such as water and air resources, and distance to the significant breeding or nesting grounds or critical wetlands. Rapid biological surveys should be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or of species of economic importance.

Design institute

EPB PPMO

Others except above

No impact S L Lt To minimize impacts, the subcomponent sites will be carefully selected based on the consideration of environmental factors such as

Design institute

EPB PPMO

12 Appendix 2


Codei


Scope Magnitude Duration Proposed Mitigation Measures

Imp. Sup.

water and air resources, and distance to residential areas.

2. Construction Stage All the subcomponents classified as Category B will support some infrastructure construction, which have potential negative impacts.

Soil All Possible soil erosion as a result of soil excavation.

S L St Soil will be collected at a designated area until it is reused locally for building foundations. Water drainage systems will be constructed and exposed areas re-vegetated to help reduce soil erosion.

Contractors and IA

EPB, PPMO

All Dust in suspension from construction activities and transportation

S L St Construction sites will be enclosed, exposed storage sites covered, or dust reduced with sprayed water, on-site storage of materials will be minimized, water will be sprayed at construction sites and on dusty roads, materials will be transported in covered vehicles or in closed containers, vehicle speeds will be controlled, and transport routes selected with a view to minimizing dust.

Contractors and IA

EPB, PPMO

Air

All Pollution from vehicle and construction machinery emissions

S L St Vehicles and construction machinery will receive proper maintenance and be operated in compliance with relevant emission standards.

Contractors and IA

EPB, PPMO

Noise All Noise generated by vehicles and construction machinery

S L St Vehicles and construction machinery will be required to comply with relevant noise generation standards. Construction

Contractors and IA

EPB, PPMO

Appendix 2 13


Codei



Imp. Sup.

14 Appendix 2

arrangements will include prohibitions on the nighttime use of certain noisy machines (e.g. pile-drivers and concrete vibrators as well as vehicles) if the construction site is close to significant breeding or nesting grounds, critical wetlands or villages.

All Wastewater and solid waste generated by site construction activities and construction workers

S L St Appropriate septic disposal systems will be installed at construction sites. Drainage ditches will be built and temporary septic tanks installed for collection of wastewater. All construction equipment wash down areas will be equipped with water collection basins, including oil separators. Solid waste will be collected and transferred to the waste safety treatment plant.

Contractors and IA

EPB, PPMO

Water Quality

D1 D2 D3

Water quality reduction in critical watersheds resulting from excavation for extension of open waters or linkage canals.

S L St All excavation works should be confined to the dry season if possible, and water quality frequently monitored.

Contractors and IA

EPB, PPMO

Flora and Fauna

D1 D2 D3

Displacement of significant flora and fauna. Conservation areas and critical wildlife may be affected if sites are placed too close to significant breeding or nesting grounds, critical wetlands, etc.

G M St No construction works will be sited adjacent to or near (within one km) significant breeding or nesting grounds, critical wetlands, etc. Rapid biological surveys should be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or

IA and contractors

EPB, PPMO


Codei



Imp. Sup.

species of economic importance.

D5 The resettlement of endangered plants for the botanical garden may cause loss of these plants because of their low survival rate.

G L St Any resettlement and planting of endangered plants should undergo detailed design and trials in advance of any large-scale plantings.

IA EPB, PPMO

All Loss of or damage to vegetation because of permanent or temporary land occupation

S L St/Lt All construction works will be carried out so that damage or disruption to vegetation is minimized. Trees or shrubs will be felled or removed only if they impinge directly on the permanent works or necessary temporary works. After temporary works are removed, sites will be re-vegetated.

IA EPB, PPMO

All Potential loss of native vegetation cover and biodiversity caused by aquaculture and plantings for the protective tree belt, as well as on lakeshores and islands. Higher disease susceptibility associated with monoculture plantings of species not suited to local ecological conditions.

L L St Only indigenous species or exotic species based on local trials to test suitability for local conditions should be planted. Fruit-bearing shrubs are the first choice, as these serve as food sources for wild birds in for the wetland subcomponents. Seedlings should be sourced from certified nurseries.

IA EPB, PP

Historical, Cultural, and Archaeological

D7 Construction of cultural relics protection may damage the relics if improper techniques are used, especially in the case of Xixia Tombs and the Helankou rock carvings.

G L St All construction works intended protecting cultural relics should be undertaken only after careful trials, especially for Xixia Tombs and the Helankou rock carvings.

IA EPB, PPMO

Appendix 2 15


Codei



Imp. Sup.

D8 D9 D10 D11

Cultural sites may be encountered during construction of the flood system for Xixia Tombs.

G L Lt Mitigation measures will include immediate suspension of construction activities if any archaeological or other cultural relics are encountered. The relevant cultural authority, as well as the PPMO, will be promptly notified, and construction will resume only after a thorough investigation.

IA EPB, PPMO

Land Acquisition

All Certain land will be permanently or temporarily occupied for the construction works

S L St Compensation or land exchange is required if any farmland (or fish ponds) are occupied. Temporary land occupation will be planned well ahead of construction to minimize the impact of the disturbance.

IA EPB, PPMO

3. Operational Phase

3.1 Animal Husbandry and Processing

C1 C2 C4

Solid waste from breeding of cattle, cows and water poultry

L M Lt The solid waste will be collected, dried and sterilized and then used as compost fertilizer

IA EPB, PPMO

C1 Solid waste from beef cattle slaughtering and processing

L M Lt The solid waste will be collected, dried and sterilized and then used as compost fertilizer

IA EPB, PPMO

Solid waste

C1 Solid waste from contracted household breeding sectors

S L Lt The solid waste will be collected and treated by the small anaerobic biogas production system (see ”wastewater” below), and/or then used as artificial farmyard fertilizer.

IA and contracting households

EPB, PPMO

Wastewater C1 Sewage from the cattle breeding farms, including the

L M Mt The wastewater from beef cattle breeding will be discharged to the

IA EPB, PPMO

16 Appendix 2


Codei



Imp. Sup.

central breeding site and the fattening demonstration site

drainage pipeline and piped to the sewage treatment plant in the Demonstration Area. After treatment, the water quality will meet the Grade II standard, and will be used for irrigating trees and grassland in the Demonstration Area. The remaining treated water will be discharged into No. 32 Branch Drainage Canal (for Grade V water quality).

C1 Sewage from the slaughterhouse

L L Lt (See treatment for wastewater from the breeding site, above)

IA EPB, PPMO

C1 C2 C4

Waste water from the contracted household breeding cowsheds

S L Lt Sewage will be washed from the cowsheds and then treated by an anaerobic digester in the biogas generation and utilization system. After treatment, the residue will be used as compost fertilizer and the liquid for irrigation of farm land or greening of yards. Biogas will supply fuel for the households.


EPB, PPMO

C1 C2

Odor from the central cattle breeding site and the fattening site. Dust from feed processing.

L L Mt Air-exchange and other ventilation facilities will be installed. Cowsheds will be thoroughly cleaned twice a day. An airtight feed processing workshop will be used with a gas skirt to collect dust.

IA EPB, PPMO

Air

C1 Air pollution and odor from the slaughterhouse

L L Mt The processing workshop will be airtight with a gas skirt; waste gas could be treated by installing air- exchange and other ventilation facilities, including adsorption by

IA EPB, PPMO

Appendix 2 17


Codei



Imp. Sup.

active carbon. De-sulfurization equipment will be used for boiler smoke and carbon dioxide (CO2).

C1 C2

Air pollution and odors from the contracted household breeding cowsheds

S L St Air-exchange and other ventilation facilities will be installed if required. Cowsheds will be thoroughly cleaned once a day.

Contracting households

EPB, PPMO

Noise C1 C2

Noise generated by equipment and machinery at the breeding and fattening site, as well as at the slaughterhouse.

S L St Equipment with good performance and low noise will be selected, and brackets used to minimize vibration in installed equipment. Machinery will be positioned appropriately, and maintained regularly, and personal protection provided for workers.

IA EPB, PPMO

3.2 Agroprocessing and Winery

Wastewater C3 D2 D3 C5

Wastewater has potential impacts, particularly for the winery, if not properly treated

L L St After treatment, the water will be suitable for watering surrounding grass and trees, or will be discharged into a drainage furrow.

IA EPB, PPMO

Solid Waste Same as above

Impacts of improper disposal of plant residues such as grape stems and skins, as well as boiler slag in the processing plants.

S L St The plant residues such as grape stems and skins should be collected and sold as livestock feed, and/or be composted as organic manure. Boiler slag should be collected and used for road repairs, and /or sold as raw material for cement making.

IA EPB, PPMO

Air Pollution Same as above

Effluvia produced during processing (such as CO2 from grape fermentation process) and smoke from steaming stoves will degrade

S L St Waste gas could be treated by installing air-exchange and other ventilation facilities, including adsorption by active carbon.

IA EPB, PPMO

18 Appendix 2


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Imp. Sup.

air quality.

Noise Same as above

Excessive noise from equipment can negatively impact the health of workers.

S L St Equipment with good performance and low noise will be selected, and brackets used to minimize vibration in installed equipment.

IA EPB, PPMO

3.3 Eco-tourism

D1 D2 D3 D7 D8 D9 D10 D11

Different types of ecotourism will be developed after construction is complete. Implementation of tourism projects has the potential result in impacts on any locally significant flora and fauna, which may be displaced for development of sites; loss of wetland and vegetation for trail development and as a result of on-and-off-trail activities; displacement of wildlife as a result of tourist presence; excessive use of local resources, in particular water; localized water pollution from solid waste, sewage, and litter; localized water and air pollution from vehicles and power boats.

L L Mt Mitigation measures include: (i) tourism planning and environmental guidelines developed during the earlier phase of subcomponent implementation should be strictly followed in implementing tourism projects. (ii) No development of tourism physical infrastructure (buildings, restaurants and other service facilities, roads, etc.) is allowed in sensitive core areas of the wetland.(iii) No development of tourism physical infrastructure (buildings, restaurants, and other service facilities, roads, etc.) is allowed close to significant breeding or nesting grounds, critical wetlands core zone, etc. (iv) Various non-infrastructure activities that support ecologically appropriate wetland tourism development. (v) All solid waste, sewage and litter will be cleaned and collected, and properly treated. A plant will be built

IA EPB, PPMO

Appendix 2 19

to treat residential waste water and the treated effluent will irrigate landscaped areas.

3.4 Water Balance

D1 D2 D3 D7

The water balance may be impacted as a result of the wetland and botanic garden development in the project area.

L L St A detailed water requirement analysis and a study based on water monitoring will be carried out during the implementation stage of the subcomponent. Proper water allocation should ensure that the water balance for the wetland is maintained.

IA EPB, PPMO

C1 C2 C3 C5

No impacts are anticipated from excessive use of irrigation water by cropping adjustments for fodder, grapes, horticulture, etc.

L L St Not required IA EPB, PPMO

3.5 Use of Pesticides and Fertilizers

All except D8, D9, D10, D11

Impacts to water quality, flora and fauna from the use of pesticides and fertilizers for shelter belt plantation, fodder field extension, greenhouses, aquiculture, horticulture, etc.

S L St Pesticide and fertilizer application should be minimized as much as possible, and pesticides should only be applied by workers who have received training in storage, handling, use, and disposal. Workers should be issued protective equipment.


EPB, PPMO


Codei



Imp. Sup.

20 Appendix 2

Dur. = duration: St = greater than 1 day, but less than 1 year; Mt = 1—10 years; Lt = Greater than 10 years; EPB= Environment Protection Bureau; IA = implementing agency; Imp. = implementation; Magn. = magnitude: L = low; M = medium; H = high; U = uncharacterized; PPMO = provincial project management office; SEIA = summary environment impact assessment; SIEE = summary initial impact examination; Sup. = supervision. Notes: Scope (e.g., spatial): S = site, effect restricted to a small area within an intervention site; L = local, effect restricted to intervention site; Sr = subregional, effect extends beyond the intervention site but falls within the local watershed; R = regional, effect extends throughout the subcomponent area; G = global, effect extends beyond the subcomponent area.

21

Appendix 3 Updated Environmental Monitoring Plan

A. Introduction

16 The following revised Environmental Monitoring Plan (EMP) addresses the activities that were added or modified as part of the change in scope to the Ningxia Integrated Ecosystem and Agricultural Development Project. The original EMP is attached for reference purposes. 17 The Ningxia Hui Autonomous Region Government (NHARG) is the executing agency represented by the NFD, under which a Project Management Office (PMO) had been established. The PMO is responsible for the implementation of the environment management plan. Under the project change in scope, the PIAs include Ningxia Finance Department (NFD), Ningxia Agriculture Reclamation Bureau (NARB), and Yinchuan Municipality Government (YMG).

B. Summary of the changes requiring an EMP revision

18 Project’s subcomponents requiring changes to their Environment Management Plan are presented in Table 1 based on APP8: Screening of environment impacts.

22 A

ppendix 3

Table 1 Subcomponents that need for updating environmental monitoring plan

Component Subcomponent (Id Code)

Cat. Change in Scope Anticipated Environment Impacts

Proposed Mitigation Measures

Institutional Responsibility

Beef Production (C-1)

B Central beef cattle breeding herd will be increased from 750 to 1500 head. Beef slaughterhouse has been completed using government funds and the loan savings will be used for fodder mechanization and conservation agriculture equipment.

Effluent from central breeding herd and household units

Animal dung will be collected and dried for bio-fertilizer utilization from central herd breeding units. Households breeding units will be installed with biogas digesters to treat effluent. Wastewater treatment facilities will be constructed to treat wastewater from digesters and breeding units.

NARB

Dairy Production (C-2)

B Five distributed dairy farms will be regrouped into one farm. The fodder base will be increased by 300 ha using funds saved from NAB’s fodder program.

Cow manure and cowshed wastewater and effluent impact on groundwater.

Animal dung will be dried and composted for fertilizer. Other wastes and cowshed wastewater will be treated through central biogas plant at Pingjipu Dairy Farm, which include (i) solid separation, (ii) anaerobic and aerobic digestion, and (iii) sludge drying.

NARB

Component 3: Improving Rural Livelihoods

Vineyard and Winery (C-3)

B Part 1: increased scope from 10,000mu to 36,000mu; Introduced 36000mu of water saving

Wastewater and solid waste from grape processing. Minor impacts of gas. No adverse impact from

Sewage treatment of waste water. Solid waste will be composted and disposed of according to government regulations. Gas and odor

NARB





technology Part 2: Increased for storage and grape crushing and investment into equipment for grape processing facility expansion

the reduced use of irrigation by cropping adjustment for fodder, grapes, horticulture, etc. The water-saving irrigation programs are expected to result in substantial improvements to water use efficiency and reduced water logging of soils.

will be managed through height of chimney venting.

Yinxi Alternative Livelihoods Development (C-4)

B Reduced planting areas from 1700ha to 260ha

Not applicable (no significant negative impacts)

YMG

High Technology Ecological Agriculture Development (C-5)

B Shift the implementation project activities from NAB to NARB. Vocational training and infrastructure agriculture have been done using government funds and will be removed from the project.

Refer to C-1, 2, 3. NARB

Component 4: Conservation and Tourism

Yinchuan Wetland (D-1)

B Wetlands conservation of Tonggui, Yueya, Sanding, and Baohu lakes have been done or will be undertaken

Water quality reduction in critical watersheds resulting from excavation for extension of open waters or linkage canals.

All excavation works should be confined to the dry season, and water quality frequently monitored.

YMG

Appendix 3 23

24 Appendix 3





by government funds. The loan savings are reallocated to the public education and exhibition facilities in Shahu and Mingcui lakes.

Displacement of significant flora and fauna. Conservation areas and critical wildlife may be affected if sites are placed too close to significant breeding or nesting grounds, critical wetlands, etc.

No construction works will be sited adjacent to or near (within 1 km) significant breeding or nesting grounds, critical wetlands, etc. Rapid biological surveys should be undertaken at all sites to ensure the absence of any threatened or endangered flora and fauna, or species of economic importance.

Shahu Lake (D-2) B Reallocate funds savings from the completed aquatic plant using government funding to the education center. Delete the holiday houses and use savings for the increased cost of the education center.

Disturbance to significant breeding nesting grounds, critical wetlands, etc. Water balance is disrupted Declining water quality from increased tourism and agriculture in the catchment

Location of work in non-sensitive ecological area and at least 2 km away from the core bird habitats. Major works completed in non-nesting seasons. Careful monitoring of water balance Waste and sanitation programs for tourist sites and development and demonstration of site-specific nitrogen management

NARB

Yuehai Lake (D-3) B Replace aquatic poultry plant and use

Potential water pollution due to poultry production

Same as D-1. YMG

loan savings to develop eco-tourism facilities.

will be removed. Other impacts are same as D-1, 2.

Helanshan Piedmont Conservation Management (D-5)

B No change in scope. GEF funds will be reallocated to support IEM demonstration area.

Not applicable (no significant negative impacts)

NFD YMG

Appendix 3 25





26

C. Monitoring Requirements and Indicators

19 The Project will utilize appropriately qualified monitoring service providers for environmental monitoring, and proposes to contract these through the NEPB. The subcontractors will visit intervention sites at key times to ensure that mitigation measures are being implemented, and that negative impacts are not taking place. Monitoring requirements for the main activities are presented in Appendix 4 of the original SEIA. 20 For all construction activities, appropriately qualified monitoring experts should visit each construction site regularly during key activities to ensure that recommended mitigation measures are being implemented. Special emphasis will be given to ensuring that no construction is sited adjacent to or near (within 1 km) of significant nature reserve core zones, breeding or nesting grounds, critical wetlands, etc. 21 For all activities with the potential to impact water quality, environmental monitors should visit the sites regularly, particularly during construction preparation, construction activities, planting, agro-processing, and pesticide and fertilizer application. Ambient water quality should be monitored in situ to ensure that adequate standards are maintained. At a minimum, monitoring should include temperature, conductivity, total suspended solids, turbidity, pH, and dissolved oxygen both above and downstream of any works. The results should be compared with the Environmental Quality Standards for Surface Water (GB3838-2002) to ensure no significant reduction in water quality occurs. 22 For animal husbandry activities, environmental monitors will inspect plans before work commences; all breeding sites should be away from residential areas. The monitors should visit sites according to the schedule in the project-specific environmental assessments and should pay particular attention to the mitigation measures recommended in the environmental assessments, in particular the monitoring of the treatment of animal dung and urine. 23 For agro-processing activities, environmental monitors will visit subcomponent sites regularly according to the schedule developed in the activity-specific environmental assessments that will be undertaken before the subcomponents are implemented. The monitors will carry out air emission, wastewater, and solid waste monitoring according to the PRC's environmental monitoring regulations. 24 A final report should be prepared summarizing activities, implementation of mitigation measures, impacts observed, and additional measures required. A semi-annual report on implementation of the EMP will be submitted to ADB by the Ningxia Hui Autonomous Region Finance Department of (NFD), as the Executing Agency of the Project.

D. Institutional Arrangements

1. Provincial Project Management Office 25 A provincial project management office (PPMO) has been established in the NFD, which will have responsibility for implementation of the environmental management plan of the Project. Working under the supervision of the Ningxia EPB and the NFD, one of the key duties of the PPMO is to supervise implementation of all environmental mitigation measures and to monitor programs recommended in the original SIEE and this UEMP. The PPMO shall also be responsible for reporting the EMP findings in each Progress Report. A suitable institution that has been certified by the Ningxia EPB will be contracted to undertake environmental monitoring and reporting for the PPMO. The environmental monitoring institute (EMI) will (i) monitor and supervise implementation of all project environmental requirements, including mitigations noted in the original SIEE and this UEMP; (ii) coordinate development and implementation of the environmental compliance monitoring program, as well as liaise with provincial and local EPBs; and (iii) organize the environmental monitor training program.

27

26 Through the PPMO, the EMI will establish a system under which regular monitoring of the physical environment and socioeconomic impacts on the potential beneficiaries will be carried out. The EMI will also initiate establishment of computerized monitoring databases utilizing the services of appropriately qualified staff and consultants. The system will include assessment and monitoring of key indicators for measuring the success of ecosystem-based environmental protection in terms of ecological and environmental improvements.

2. Implementing Agencies 27 The sub-borrower and their supporting IA for each subcomponent is fully responsible for complying with all environmental requirements, including implementation of environmental mitigation measures specified in the original and SIEE this UEMP, so as to ensure that all related national and provincial environmental regulations and standards are met. The IA for each subcomponent will appoint an environmental manager, who will conduct self-monitoring, and prepare a quarterly report reflecting the IA's environmental performance, and submit it to the PPMO for review. The environmental manager will also participate in the monitor training workshops organized by the PPMO and Ningxia EPB.

3. Ningxia Environmental Protection Bureau 28 Ningxia EPB will review and approve the Environmental Assessment Report of the project based on the PRC’s regulations and guidelines, and requirements specified in the original SEIA and this UEMP. Ningxia EPB will guide and support the EMI contracted by the PPMO in establishing key indicators for measuring the success of ecosystem protection in terms of ecological and environmental improvements. Ningxia EPB, in cooperation with the PPMO, will organize training sessions for the Yinchuan Municipal EPB and IA staff on environmental monitoring. 29 The EMI will undertake the following specific tasks: (i) meet the activity site manager and discuss and review the proposed work and EMPs; (ii) inspect work activities and implementation of the environmental mitigation measures, and assess the performance of such measures; (iii) undertake any necessary in-situ water quality, biodiversity and other environmental monitoring; (iv) order additional mitigation measures, if required; and (v) prepare monitoring reports. The EMI will report the monitoring results to Ningxia EPB and the PPMO according to the requirements of the UEMP.

E. Enforcement Arrangement

30 The municipal and relevant county and/or district EPBs will supervise and report any failure to implement mitigation measures or any significant adverse environmental impacts to Ningxia EPB, the NFD, and the PPMO. The authorized Ningxia EPB or municipal and relevant county and/or district EPB will be responsible for halting activities if mitigation measures are not being implemented or if significant negative environmental impacts are occurring. Activities should not recommence until the identified problems have been adequately addressed.

F. Summary

31 This Revised Environmental Monitoring Plan is the guideline for implementing the environmental monitoring plan updated under the Project’s proposed changes in scope, to meet the needs of PRC’s environmental requirements for construction activities. However, if there is any doubt or questions arising due to the non-compliance with the original SEIA, it should be dealt with care to find out a proper solution to meet the PRC’s environmental requirements as well as the ADB’s Environmental Safeguard Policy Statements. 32 The contents in this document supposed to be coincident with the UEIA, another stand alone document submitted to ADB as well as to the PPMO.

28

Appendix 4 EIA registration forms EIA registration form I Title: 3.6×104 mu (= 2 400 ha) grape water-saving irrigation (drip irrigation) system project Subcomponent implementation (construction) Unit: the Ningxia Agricultural Reclamation

Bureau, herein as NARB Time of submitting: 30th of November 2010 Title of Project 3.6×104 mu (= 2 400 ha) grape water-saving irrigation (drip irrigation)

system Construction Unit

NARB

Legal Representative

Wang Yongzhong Contact Person

Sun Liping

Address No. 57, Minzu North Street, Xingqing District, Yinchuan City Tel: 0951-3971913 Fax: 3971913 Post Code 750001 Location of Construction Site

Yuquanying, Huangyangtan, Lianhu, Nuanquan Farm, Helanshan Farm & Pastrue, Yinchuan Forest Farm

Construction Category

New construction Industrial Category & Code

Farming (Plantation)

Land Area (m2) 3.6×104 mu (2400 ha) Net Area (m2)

Same as the left column

Total Investment (×104RMB)

6819 Environmental Protection Investment (×104RMB)

6819 Ratio of EP/Total

100%

Projected Finish & Operation Date

July of 2011 Estimated Working Days per Year

180 days

A. Construction Content & Scope: Well drilling and expanding, 76; Water pool & pond, 5; Transmission line: 7.5 km; Irrigation Ditch & Canal 8000 m; Other Facilities for Drip Irrigation: UPVC pipe, 560×103m; PE pipe: 7 000×103m. The original design was to reclaim a piece of land (88500 mu, equal to 5900ha) in the eastern piedmont of Helan Mountain for planting grape, jujube and Chinese wolfberry (Lycium chinensis) as well as some other economic crops with ecologically water-saving technology. Under the proposed change in scope, the contents, the site location, the amount of loan, and the ideas of the subcomponent were not changed, except for the implementation unit. Instead of by the WRB of NHAR and the Yinxi Ecological Forest Management Office, this subcomponent will be implemented by the NARB, and the loan savings from the cancelled canal construction, which was supposed for irrigating the reclaimed land, is adjusted to construct a water-saving drop irrigation system for 3.6×104 mu (2400 ha) of grape plantation within the original site. B. Materials and energy needed: Water resources, 10×106m3; and Electricity: 2.5×106kWh. C. Water and Energy Consumption: Item Consumption Quantity Item Consumption Quantity

29

Water (t/yr) 10×106m3 Fuel Oil (t/yr) Electricity (kWh/yr)

2.5×106 Fuel Gas (m3/yr)

Coal (t/yr) Others D: Waste water generation: No industrial or residential waste water will be generated in this subcomponent project. E: Natural Conditions in the Surrounding areas: Within a few state-owned farms, plain land, 1109 m a.s.l., MAT 8.7°C, MAP 206.3 mm, MAE 2160 mm, sunshine 3140h, cultivated land with wheat, corn, paddy rice, grape, Chinese wolfberry, surrounded by windbreak belt, far from residence areas. F. Brief of the production processes and/or techniques: Well/pool→Water (with fertilizers added in intermittently; and/or filtering & pressure adjustment through valves) → Main pipe line → Sub-main pipe → Small pipe→ Capillary pipe → Dripper/Emitter → Absorbed by grape roots. 1. Drill up wells and build up pools or ponds; 2. Pump water from the well or pool or pond into the main pipe line with filters; and at the

same time 3. Add some nutrients into water, if need, and through valves adjust the water pressure in

the main pipe; 4. Water flows from the lined main pipe through sub-main, small, capillary pipes and

drippers/emitters to the soil full of grape roots; 5. Water is absorbed by grape foots. Pipe line construction process: VIII. Survey and lay out lines; IX. Dig up the ditches into 1.3m depth, drain up water away and fill concretes to the ditch

base; X. Lay down the pipes; Check the pipes and the rubber connection seals or liners before

backfilling the pipes up; XI. Install the valve system in a well management chamber. The terminal flange of a well

should leave a distance of at least 100mm to the well bottom. The well bottom is 120-160cm in diameter and 120-140cm in depth, and the mouth-top of a well is 70cm in diameter;

XII. Backfill pipes up with pressed earth. The construction site is located in the piedmont area of Helan Mountain beyond to the farmland fringe, and thus distant to the residential area. The digging operation area is within a limited area and there will be no large quantity of dusts and waste water generation. There will be no large impacts of noise on local residents during the construction period, since it’s distant to the residential area. In general, there is no sized impact on surrounding areas. G. Proposed mitigation measures against potential environmental impacts (including construction and operation periods): In construction period: 1. Dispose of any on-site generated rubbish and solid wastes timely, and properly transport

the wastes to sanitary landfill place. 2. No temporal road construction; no disturbance to vegetation cover at the construction

ground and its vicinity. 3. Pile up the excavated side pilings at assigned proper ground. The project itself is a water-saving drip irrigation and ecologically favorable project, and it will have no pollution risks to the environment during its operation period. H. Approval comments: Approved. Official Signature: (With Official Seal here) Date: 13th of Dec. 2010

30

EIA Registration Form II Title: IEM Demonstration and Training Management Center in Eastern Piedmont of Helan

Mountain Subcomponent implementation (construction) Unit: the Integrated Provincial Project

Management Office of the NFD Time of submitting: 30th of November 2010 Title of Project IEM Demonstration and Training Management Center in Eastern

Piedmont of Helan Mountain Construction Unit

IPPMO

Legal Representative

Cui Yadong Contact Person

Gan Quan

Address No. 416, Jiefang West Street, Yinchuan City Tel: 13639589293 Fax: 5059496 Post Code 750001 Location of Construction Site

Haoyuan Village, Zhenbbeibu Town, Yinchuan City


New construction Industrial Category and Code

Land Area (m2) 1.35×104 m2 Net Usable Area (m2)

6300m2




5%


Nov. of 2011 Estimated Working Days per year

280 days

A. Construction Content & Scope: The original design was to build up 200 households (about 30000m2) ecological agricultural greenhouse within the Ecological Agricultural Demonstration Garden located at Zhenbeibu Town, with energy-saving technologies in materials, methods, and measures for construction and installation, to maximize the effects of natural day-lighting, thermal isolation and so on. Under the proposed change in scope, the contents, the site location, the amount of loan, and the ideas of the subcomponent were not changed, except for the implementation unit. Instead of by the NAB of NHAR, this subcomponent will be implemented by the IPPMO, and the loan savings from the original design is adjusted to construct an IEM Demonstration and Training Management Center within the original region, i.e., 200m away from the 200 households ecological agricultural greenhouse. The building will use energy-saving technologies in day-lighting, thermal isolation and construction structure. The project will use grants from GEF to build up an integrated ecosystem management demonstration and training center, aiming at raising the awareness and techniques as well as skills of the local people through demonstration and training programs of biodiversity conservation, land deterioration prevention, ecosystem restoration and other similar contents. The Center will have several functional parts such as education and training division, data management center, administrative office, and expert’s apartments, and so on, taking up an area of 13500 m2 land, among which the build itself will occupy 6300m2, and waters,

31

gardening and greening 7200m2. B. Materials and energy needed (including names and quantity), as well as installation and facility names (boilers, dynamos, etc.): Reinforcing steel bars: 465t; cement 960t, rock 880m3, windproof glass 7700m2. C. Water and Energy Consumption: Item Consumption Quantity Item Consumption Quantity Water (t/yr) 2500 Fuel Oil (t/yr) Electricity (kWh/yr)

3.0×104 Fuel Gas (m3/yr)

D: Waste water generation and disposal: The amount of residential living waste water generated by Center’s operation will be small, and will be treated through an environmentally-harmful-free sanitary system within the Center. No wastes will be discharged outside the Center. E: Natural Conditions in the Surrounding Areas: The construction site is located at Zhenbeibu Town, Yinchuan City, west near to provincial highway 201 and Toll gate Gaojiazha. Geomorphologically this region is a flood alluvia plain in the eastern piedmont of Helan Mountain, with sandy and gravel or even rocky surface. The sediments under the topsoil consist mainly of loamy sands, covered with natural desert steppe vegetation that is simple in structure on the ground. There is no salinization in the soil. The landscape is roughly Gobi-like, with sparse vegetation here and there. The surface soil is loose and gravelly textured, open to undergoing wind and water erosion in mid- to heavy-degree. This region receives only a 200mm precipitation annually and thus there is no stable agricultural production in the region if without proper irrigation. However, with the assistance of a few Japanese loans for combating wind erosion through vegetation restoration before, the environment of this region has been much changed ecologically, forming some artificial vegetation of windbreak forest and grassland. The east, south and north sides of IEM Demo Center are windbreak forest plantations, and the west side is vineyard plantation. There is no residence around the construction area. F. Brief of the production processes and/or techniques: Not applicable, as for production techniques or processes. The construction is divided into three stages: Planning and designing, construction and ready to operation. G. Proposed mitigation measures against potential environmental impacts (including construction and operation periods): In construction period: Spray water on the construction materials daily to keep certain degree of moisture, and to reduce dusts impact on surroundings. Dispose of any on-site rubbish and solid wastes timely, and properly landfill them to a sanitary place. The residential wastes should be collected daily and transported to a nearby landfill place for end treatment. In operation period: A small amount of waste water will be generated daily and disposed of through environmentally-friendly lavatories for preventing water pollution and soil pollution. After finishing the construction, the Center will play its role as a functional base of demonstration and training. By that time, the main energy for its operation comes from the solar radiation, biogas and some other clean energies alike, thus there will be no large quantity of waste water discharge and waste gas emission. H. Approval comments: Approved. Official Signature: (With Official Seal here) Date: 13th of Dec. 2010

32

EIA Registration Form III Title: Popular Science Education Center at Mingcui Lake Wetland Park Project Subcomponent implementation (construction) Unit: Wetland Management Office of Yinchuan

Municipality Time of submitting: 30th of November 2010 Title of Project Popular Science Education Center at Mingcui Lake Wetland Park Construction Unit Wetland Management Office of Yinchuan Municipality Legal Representative

Ma Jianguo Contact Person

Ma Feibiao

Address No. 25, Zhongshan South Street, Yinchuan City Tel: 6017683 Fax: 6017683 Post Code 750001 Location of Construction Site

Mingcui Lake Wetland Park, Yinchuan City


Retrofitting and Refurbishing Construction

Industrial Category and Code

Gross Land Area (m3)

2000m2 Net Usable Area (m2)

4822m2




5%


Jan. of 2011 Estimated Working Days per year

300 days

A. Construction Content & Scope: The original design was to establish a few wetland protection stations in flood plains of Yellow River around Yinchuan City, as well as in Mingcuihu Wetland Park and Haibaohu Wetland Park, for developing some training and education programs of wetland conservation. Under the proposed change in scope, the amount of loan, the contents, the regional location, and the ideas of the subcomponent were not changed, except for the local site location. Instead of building up a wetland museum in Haibaohu Lake, this subcomponent will use the loan savings for expanding (through in-and-out retrofitting and refurbishment) the Popular Science Education Center at Mingcui Lake Wetland Park. In particular, the subcomponent will establish a Popular Science Education Center, mainly through refurbishment of the ground floor of the View Tower as a Popular Science Education Classroom; and through retrofitting of the second floor of the View Tower as a Popular Science Exhibition Gallery. The total floorage area of the proposed Education Center after this expansion is about 3200m2. B. Materials and energy needed (including names and quantity), as well as installation and facility names (boilers, dynamos, etc.): Reinforcing steel bars: 37t; Elastic Membrane: 2500m2. Equipments: Projector, 1 set; DVD, 2 sets; HiR TV, 2 sets; and Touch Pad Computer, 2 sets.C. Water and Energy Consumption: Item Consumption

Quantity Item Consumption Quantity

Water (t/yr) 20 Fuel Oil (t/yr) 3

33

Electricity (kWh/yr)

100 Fuel Gas (m3/yr)

D: Waste water generation and disposal: The amount of residential living waste water generated by Center’s operation will be small, and will be discharged from the original treatment system and outlet pipes in Mingcui Lake Wetland Paark. E: Natural Conditions in the Surrounding Areas: The Mingcui Lake Wetland is located at Zhangzheng Town, Xingqing District, 10 km eastern from the downtown area of Yinchuan City. This area has a climate of, MAT: 8.7°C; MARH: 58%; MAP: 193.8mm; MAE: 1577.5mm. The landscape in this area is an irrigated oasis + a few wetlands on Yinchuan plain, with a combination of vegetation types including lowland salty meadows, grass swamps and cultivated croplands. The construction site is located at the central part of the Mingcui Lake Wetland Park, distantly surrounded by sightseeing landscapes and tourism greening belts, as well as some protected wetlands. F. Brief of the production processes and/or techniques: 1. The construction process for the Popular Science Education Classroom on the ground floor: Planning & Design → Functional zoning → Retrofitting and refurbishing construction → Pipes and wires layout → Equipments installation and commissioning → Samples layout. 2. The construction process for the Popular Science Exhibition Gallery on the second floor: Planning & Design → Functional zoning → Retrofitting construction (Steel frame welding, corrosion-proof treatment, and elastic membrane installation) → Samples layout for exhibition. This subcomponent is a retrofitting process within an original building, thus the generation of construction wastes will be limited and there is no waste gas generation during the construction period. Only a small amount of solid wastes and noise might be generated which can be minimized through applying a few simple mitigation measures. G. Proposed mitigation measures against potential environmental impacts (including construction and operation periods): In construction period: Solid wastes generated on-site by construction should be timely and properly collected and transported to a nearby landfill place for sanitary disposal. Although the impact of noise brought about by construction will be confined within a limited area, and disappear after finishing the construction, there still is a need for mitigating the noise impact during the construction period, such as covering with a noise isolation casing. In operation period: A small amount of waste water will be generated daily, and it can be properly disposed through environmentally-friendly waste water treatment facilities, which has already been installed within the View Tower of the Park. H. Approval comments: Approved. Official Signature: (With Official Seal here) Date: 13th of Dec. 2010 i Subcomponent Code: Refer to the “Subproject Code” column of the table: KEY ENVIRONMENTAL CONCERNS AND ENVIRONMENTAL SAFEGUARD REQUIREMENT (Under Proposed Changes, adopted and revised from the App 2) ii Categories are described in: ADB. 2003.Environmental Assessment Guidelines. Manila.

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