environmental impact assessment … impact assessment summary part a public disclosure authorized...

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CHINA

INLAND WATERWAYS PROJECT (LN. 39106-CHA)

ENVIRONMENTAL IMPACT ASSESSMENT SUMMARY

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SUMMARY ENVIRONMENTAL ANDSOCIO-ECONOMIC IMPACT ASSESSMENT

of theGUIGANG MULTI-PURPOSE NAVIGATION PROJECT

GUANGXI, PEOPLE'S REPUBLIC OF CHINA

Prepared Under the Supervision of theGuangxi Communications Department

and Compiled in English byEnvironomics Consultants Co. Ltd.

Beijing

February 1994Revised April 1994

Final Revision to Include Socio-Economic Data: May 1994

TABLE OF CONTENTS

A. INTRODUCTION 1

A. I Regulatory Framework 1

A.2 EIA Report Preparation 1

B. PROJECT DESCRIPTION 2

B. 1 Objectives 2

B.2 Description 2(i) Infrastructure 3(ii) Population and Output 7

C. DESCRIPTION OF THE ENVIRONMENT 7

C. 1 Natural Environment 7(i) Meteorology 7(ii) Terrain and Geology 7(iii) Surface and Groundwater 7(iv) Flora and Fauna 8

C.2 Socio-economic Setting 8(i) Local Economy 8(ii) Population and Indigenous Peoples 8(iii) Cultural and Historical Properties 9(iv) Public Health 9

D. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATIONMEASURES 9

D. 1 Location Issues 9(i) Inundation Management and Prevention 9(ii) Socio-economic Impacts 10

a. Agricultural Development Program 10b. Aquaculture and Forestry 11c. Employment and Training 11

(iii) Flora and Fauna 15(iv) Impact on Cultural and Historical Properties 16(v) Coal Handling Terminals 16

a. Principal Environmental Impacts 17b. Dust Prevention 17c. Wastewater Treatment 17

D.2 Construction Issues 17(i) Noise(ii) Soil Erosion and Dust 17(iii) Atmospheric Pollution 18(iv) Surface Water Pollution 18(v) Economic Impacts of Construction 19(vi) Public Health 19(vii) Dredging and Widening of the Channel 20

E. PROJECT ALTERNATIVES 20

F. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTALMONITORING PROGRAM 21

F. I Institutional Arrangements 21

F.2 Environmental Monitoring 21

F.3 Environmental Capacity Building and Training 24

G. ENVIRONMENTAL ACTION PLAN BUDGET 25

I. PUBLIC INVOLVEMENT AND COMPENSATION 27

J. SUMMARY AND CONCLUSIONS 30

KEY ELEMENTS OF THE EAP/EMP FOR THE GUIGANGMULTIPURPOSE NAVIGATION PROJECT 32

LIST OF DOCUMENTS 37

A. INTRODUCTION

The original Chinese EIA for the Guigang Multi-Purpose Navigation Project(GMPN) was prepared by the Guangxi Electric Industry Design Institute (GEIDI) between1990 and 1991 as part of the Feasibility and Preliminary Design Report. The EIA wasreviewed and conditionally approved by the National Environmental Protection Agency(NEPA) in December 1991. A supplemental report was produced in early 1992 to meet theadditional NEPA conditions, thus meeting all the Chinese EIA requirements.

The Guangxi Communications Department (GCD) engaged the services ofEnvironomics in mid-1993 to assist in the preparation of the project English language EIAreport for submission to the World Bank. The Environomics scope of work included reviewof the Chinese EIA documents, compilation and re-assessment of available background dataand information, and drafting of the English EIA report. Due to time and resourceconstraints, the English EIA is based only on data collected during the original EIA andFeasibility Study. Environomics has attempted to validate available information with theoriginal field data when feasible, and has sought clarification and amplification of materialfrom GEIDI to meet as closely as possible Bank EIA requirements.

In addition to the main EIA report, Environomics has prepared anEnvironmental Action Plan (EAP) and an Environmental Monitoring Plan (EMP) under thedirection of the Guangxi Communications Department. The latter two documents providea rational program and schedule for mitigating and monitoring potential project environmentalimpacts within the technical and resource constraints of the project proponents.

A full socio-economic impact study was completed by the Guangxi ElectricIndustry Design Institute and included in the original feasibility study for the project. Itcontains information and statistics on socio-economic impacts and implementation ofeconomic reallocation measures.

A.1. Regulatory Framework

In August 1987, Guangxi Autonomous Region Construction Committeesubmitted Document No. 85 to the Ministry of Communications proposing the GMPNproject. The Ministry approved the location for the project and authorized the expeditedcompletion of the preliminary project design. In January 1990, Guangxi CommunicationsDepartment Document No. 008 assigned the responsibility for performing the EIA to GEIDIwhich completed the report in 1991.

A.2. EIA Report Preparation

The Chinese EIA was prepared with reference to the following regulations andstandards:

a. Environmental Protection of Law of P.R.C.b. Water Pollution Prevention Law of P.R.C.c. Fishing Law of P.R.C.d. Water Law of P.R.C.

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e. Surface Water Environmental Quality Standard.f. Air-Environmental Quality Standard.g. Urban Environmental Noise Standard.h. EIA Standard of Hydropower from Ministry of Electricity and Hydrology.

The English language EIA was prepared to meet as closely as possible therequirements of the World Bank "Environmental Assessment Source Book".

B. PROJECT DESCRIPTION

B.1. Objectives

The primary objective of the proposed GMPN project is to improve thenavigability of the Yujiang river between the Xijin dam and Guigang city. The project willensure a minimum navigable water depth during dry seasons, thus guaranteeing anuninterrupted flow of shipping and the reclassification of the river to a 3rd Class waterwayaccessible to 1000 ton barges. The upgrading will make the Yujiang river the backbone ofthe Xijiang river system transportation strategy and thus facilitate economic development inGuangxi and the adjacent provinces.

Additional benefits of the proposed GMPN project include hydropowergeneration and increased availability of irrigation water. Guigang city and to a lesser extentthe upstream Hengxian county are currently constrained in their development due to ashortage of electric power. The project will have the capacity to generate 120 MW of hydro-electric power to supplement area supplies. A minimum capacity of approximately 36 MW Ais guaranteed during the dry season which amounts to an average 590 GW.h annual power hgeneration. It is also anticipated that several thousand hectares of medium productivity land /will be brought under cultivation following project completion due to the increasedavailability of high quality irrigation water. 7 'l':

B.2. Description

The proposed GMPN project is an integral part of the Guangxi AutonomousRegion's economic development strategy which includes improvement of its railway, highwayand waterway transportation infrastructure. Guangxi is located in central south westernChina and is bordered by Vietnam to the south; and Guangdong, Hunan, Guizhou andYunnan provinces to the south east, east, north and west respectively. By virtue of itslocation, Guangxi is a transit route for goods and commerce within south western China, andan important link for the region's international trade.

The Guangxi road and rail network is currently poorly developed and lacksthe capacity to efficiently transport goods to potential markets. Traditionally, waterwayshave been a major mode of transportation in Guangxi and are currently used for shipmentof bulk commodities and raw materials between the interior and coastal areas. The proposedGMPN project is designed to increase the transportation capacity of the Yujiang river whichflows approximately west to east in southern Guangxi and is a major transportation route forthe entire region.

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The Yujiang river is part of the Xijiang river system which drains anapproximate area of 90,800 km2 and discharges into the Pearl river delta in the east. Theriver system is a major route for the transportation of raw materials and manufactured goodsfrom as far inland as Sichuan, and thus occupies a vital position in the economy of theregion. The improvement of this waterway, combined with other proposed infrastructureprojects shall provide the transportation network required to meet the anticipated demandsof increasing trade between Guangxi, adjacent provinces, Vietnam and the ports of HongKong and Macau.

The proposed GMPN project consists of a low head concrete impoundment andlock system planned for the mid to lower reaches of the Yujiang river, approximately sixkilometers upstream of Guigang City (Figure la). The area is in the historic flood plain ofthe meandering Yujiang river, characterized by flat topography with occasional limestoneoutcrops, and deep, fertile fluvial soils. The project site is located in a straight length of theriver which follows a wide turn and continues along the same course through Guigang city.(Figure lb) The Yujiang river is approximately 400 meters wide at this location and isconfined within an eroded channel by unstable earth banks which are marked with drainagegullies and show evidence of erosion and slumping.

The Yujiang river is presently regulated by the low head concrete Xijin dam,approximately 104 kilometers upstream of the project site, and at 110 kilometers downstreamby the Guiping dam. The dams were constructed in the 1960's and the 1980's respectivelyto enhance the navigability of the river, provide hydro-power and to improve irrigation andfisheries. The river is currently designated a 6th Class waterway (Table 1), navigable for100 ton barges. While there is capacity for larger barge traffic during the wet season, theriver flow between Xijin dam and the proposed project site is reduced significantly duringthe dry season, exposing some 22 shallow and rocky areas which hinder navigation andincrease the hazard to shipping.

(i) Infrastructure

The land transportation system in the project area consists of a network of dirtand gravel roads interlacing the countryside and connecting with paved two lane Class II orClass III highways. National Road 209 located on the northern plane of the Yujiang riveris the major trunk road in the project vicinity. This road which is poorly maintained andvery congested carries the bulk of the highway passenger and goods traffic in the region.The railway system in the Yujiang river area is relatively undeveloped; its main function isfor hauling bulk materials to small loading facilities along the river which transfer thematerials to barges for transportation to downstream locations.

The Xijin dam is the major source of electric power for Hengxian County.Several low-head dams along the tributaries of the Yujiang river also provide power toisolated communities or commercial operations. Guigang City receives its power from theregional electricity grid which is networked to both thermal and hydro-power plants.Currently, the Yujiang river area is constrained in its development due to a lack ofelectricity. This is particularly true of Guigang City, which suffers from acute powershortages, requiring major industries to generate electricity on site.

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rVNll, Hengxian Counly * .'

Xijin Resrvon Henxi

Hlengxian County

a Baihe ~~~~~~~~~~~Guigang City

C CHIN'A t LEGEND

|- GUIGANG MULTI-PURPOSE NAVIGATION PROJECT

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XI ETNANt I -d R.d ENVIRO.N dICS GMPN PROJECT SITE

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THE GEEA AOT / A\ . 1AVGAIN POJC

TABLE 1STANDARD SCALE OF WATERWAY NAVIGATION

Effective Scale of Navigation Navigable Clear Height of Crowsing River Structure (mn)Fleet Scale (m) Wavigable Pis Scale (m) Lock (m)

Ship Model & (ength'Width W & Caliged R Natural & Camli River Restrict_d Chwnne

Lane Barge Scale (Length' Draft) River Channel CuoiaturcClassTonnage Width' Radius -

(t) Designing Draft Depth Single Double Depth Width OLngth Width Threshold Net Net Upper- Side Net Net Upper. SideLane lane (Lk) (BK) Depth Height Width bottom Height Height width bottom Height

width width (1k) (Hm) (Bih) width (b) (h) (IHm) (B1t) width (b) (h)

(1)350'64.8*3.5 - 120 1050 24 160 120 7.0245

(2)27148.6'3.S 10( 190 810 125 95 7.01 3000 75'16.203.5 (327524.. 7 3 o300Q 7-16.28 (3)2O67¢32.4-35 3.4C75 145 _ - 800 280 34 5.S 95 70 7.0 _ _ _ _

(4)_19232,4'3.5 70 130 5.5 130 580 _-18 85 65 8.0 18 130 100 7.0

(1)316-32.4-3.5 80 150 950 _os go 6.0

67.5 10.8'3.4 (2)4532.43.4 3.4-3.8 75 145 740 280 34 5.5 18 90 70 8.0

75'1412.6 (3)1Q0'14*2.6 2.6-3.0 35 70 4.0 65 540 190 16 4.0 10 50 40 6.0 10 65 50 6.0

(1)270 32.4 2.0 80 ISO 730

(2)238-21.6*2.0 55 110 720 260 23 3.0-3.5 70 55 6.0

_11 1000 67.51O.8'2.0 (3)167-21.682.0 2.0-2.4 9 0 3.2 85 480 180 23 3.0-3.5 60 45 6.0 85 65 6.0

(4)160110.8*2.0 30 60 3.2 s0 480 180 12 3.0-3.5 40 3 6.0 1 0 4 .

(1)16021.6-1.6 45 90 480 180 23 2.5-3 0 60 50 4.0

IV 500 4510.811.6 (2)112021.601.6 40 80 2.5 80 340 120 23 2.503.0 8 50 41 4.0 - 80 66 3.5t16-1.9- -- - - -a

(3)109;10.81.6 30 50 2.5 45 330 120 12 2.5-3.0 35 29 5.0 S 45 37 4.0

(1)125018.4-1.3 40 75 380 140 23 2.0-2.5 48 38 4.0

V 300 3519.211.3 8(2)89'18.4-1.3 35 70 2.0 75 270 100 23 2.0-2.5 38 31 4.5 8 75-77 62 3.5

(3)87-9.2'1.3 1.3-1.6 22 40 2.5 40 260 100 12 2.5-3.0 5 28-30 25 3.5 5 38 32 3.52.0 2.0-2.5 8 5.5 8 5 0

_6-5.21.8 (1)36l5.5-20_ 2.5 18-22 105 190 12 2.5-3.0 4.5 18-22 14-17 3.4

3217'1.0 (2)154-14.6-i.0 25 45 130 160 16 1.5 4.5 22 17 3.4 _

VI 100 32-6.2r1.0 (3)6'656.51.0 15 30 1.5 25 200 80 8 1.5 25-30 19 3.6

3006.4(7.5) 1.0 (4)74'6.4-(7.5)11.0 15 30 1.5 28 220 80 8 1.5 6 I8 14 4.0 6 28-30 21 3.4

2114.5'1.75 (1)273'4.8X1.75 2.2 18 85 140 12 2.5 18 14 2.8

VI) S0 23'5.4'0 8 (2)20005.400.8 7-1.( 10 20 1.2 20 90 110 12 1.2 3.5 14 _ 2.8 3 18 14 2.8

3006.200.7 (3)60'6.500.7 13 25 1.2 26 180 70 8 1.2 4.5 18 14 2.8 4.5 25-30 19

Navigabl char Weigit of bridges: (l) When there a-e cptirl probium durin te irltnnirn of bridgte, tandsvss h: djbe td .-tncooieg to the risotos.

(2) Whn there ie tsobrt s the bwrg t (re pila, t width bera,oo bridge pier (or pilloars) of the inviption ptS shaM ineba the svidth of she *ableorc arsa

(3) Whet bridge hsvo to be Wll in wLAding areas of poor nvigability, ret Wsh stud be in arrdasre sit thb reqsir r of asf evigation.

(ii) Population and Output

The zone of influence (ZOI) for the project is approximately 76,300 Km2

which amounts to 32 percent of the area of Guangxi province. The area includes 12.33million mu (790,000 ha) of cultivated land and has a population of 11.4 million, which isequivalent to 26.3 percent of the Guangxi population. The gross output value of agricultureand industry in 1992 was 20.6 billion yuan (RMB) with a 10.8 percent average annualincrease (calculated over the period 1981-90). Before 1988, agricultural and industrial outputwere approximately equal. In 1990 the value of industrial output increased to double thatof agriculture and in 1992 it reached 16 times agricultural output.

C. DESCRIPTION OF THE ENVIRONMENT

C.1. Natural Enviromnent

(i) Meteorology

The GMPN project area lies in Southwest China and has a subtropicalmonsoon climate with distinct rainy and dry seasons. The rainy season, which is marked byheavy monsoon precipitation, lasts from April to the end of August, while the dry seasonextends from September to March. Rainfall ranges from 2020.7mm to 975.0mm, with anaverage annual precipitation of 1450mm. Temperatures range from 39.50C in summer to-3.4°C in winter, with an average temperature of 21.50C.

(ii) Terrain and Geology

Terrain in the project area is generally mountainous in the north, with lowlying plains in the south. The Yujiang river flows through the Xijin step area and into thereservoir from southwest to northeast, forming a U-shaped river valley.

Some sections of the Yujiang river contain navigational hazards includingshallows and rock outcrops, but most of the river is wide and has a natural flow. The steptableland bordering the river is heavily developed.

Exposed strata at the dam site consists of Cambrian, Triassic, Cretaceous,Devonian and Carboniferous formations, of which the latter two are the most widelydistributed. Igneous rocks appear in the Xijin dam and impoundment area. Most of the bedrock is covered by Quatemary period strata. Fault activity in the region is considered lowand earthquakes above magnitude 5.0 on the Richter scale do not commonly occur.

(iii) Surface and Groundwater

The proposed GMPN project site is located on the Yujiang river approximately104 kilometers downstream of the Xijin hydroelectric station. The catchment area betweenthe two locations is 4400 km2, 5.4 percent of the total river basin. There are seven majortributaries and some small reservoirs within this section of the Yujiang river.

The Yujiang river is the main source of industrial water supplies in the project

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area, as well as a supplementary source of domestic and irrigation water. Groundwater isplentiful, and many residents obtain their drinking water from domestic wells.

(iv) Flora and Fauna

The region surrounding Guigang city, including the proposed project area, hasbeen heavily developed, and high population density has put tremendous strain on theterrestrial environment. Deforestation and intensive agricultural land practices havedecimated regional riparian biota. Diversity of plant species is low and forest cover whichoriginally dominated the area has been destroyed and replaced by cash crops, shrubs andgrassland for cattle grazing. Seasonal flood inundation has also greatly reduced the diversityof flora and fauna.

Birds and reptile species are the predominant wildlife species found within theextremely poor habitat of the project site. The rare species in the region such as pangolin,masked civet, silver-ring snake, and white crane inhabit mountainous and densely forestedareas at a distance from the site, and hence are unlikely to be affected by the project.

The Yujiang river has an abundance of aquatic organisms including a varietyof fish species and hydrophytes, some of which will experience impacts from the project.

C-2. Socio-economic Setting

(i) Local Economy

The project area is within a major agricultural region which producesapproximately 27 percent of Guangxi's agricultural output. Cultivated crops include cerealssuch as rice, wheat and corn, and also peanuts, sesame, mushrooms, sugarcane, fruits, teaand tobacco.

Farming activities have historically been constrained due to poortransportation, inadequate power availability, and cycles of drought and flooding. Asecondary benefit of the project therefore will be the greater availability of quality irrigationwater and the bringing into production of dry uncultivated lands.

Currently, the full potential for industrial output and commerce in the projectarea has not been realized. The major light industries process or produce sugar, paper,fertilizer, food products, textiles and leather. Heavy industries include manufacture of steel,concrete, and machinery as well as mining of coal and other minerals.

(ii) Population and Indigenous Peoples

The project area has a population of 11.4 million, approximately 90 percentof which is rural and depends on farming or fishing for subsistence. Some 40 percent of thepopulation is made up of non-Han nationalities, with a large majority being Zhuang. Thevarious nationalities in the reservoir area are relatively well integrated with the exception ofsome isolated inland and highland villages which are predominantly Zhuang. The lattercommunities are not within the direct area of reservoir impact.

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(iii) Cultural and Historical Properties

Various surveys were performed during the feasibility study to inventorycultural and historic sites in the reservoir area and identify potential impacts of the proposedproject on these sites. The District Traffic Planning, Prospecting and Design Academy(DTPPDA) in collaboration with provincial historical relics authorities prepared a report inaccordance with "The Cultural Relics Protection Law of the People's Republic of China,"which identified approximately 17 sites within the reservoir area. The DTPPDA performeda comprehensive survey of the reservoir area over a one year period and compiled sufficientinformation to characterize the historic sites and provide suggestions for mitigationalternatives where required. The DTPPDA survey was performed on both banks of theYujiang river from Watang town in Guigang city to Hengzhou in Hengxian county.

Historical and cultural sites in the project area include: twelve Neo-lithicperiod relic sites containing artifacts such as pottery and stone implements; one ancient citysite; one ancient kiln site; a group of ancient tombs and burial mounds from the NanDynasty; and three historic structures: the Mother Dragon Temple, Fubo Temple, andHaitang Bridge.

(iv) Public Health

Diseases which have previously affected the reservoir area include viralhepatitis, dysentery, typhoid fever, encephalitis B and malaria. Viral hepatitis and dysenterycurrently pose the most widespread problems in the region. Incidence of encephalitis B hasgreatly decreased in recent years. Blood fluke and schistosomiasis were eradicated in 1983,and filariasis was eliminated in 1990. In the last five years, the incidence of malaria hasdropped to below 1/10,000. While the enlarged area of stagnant water resulting from theproject is a potential breeding ground for mosquitoes, based on the experience of the nearbyXijin dam, this is unlikely to increase the incidence of malaria in the reservoir area.

D. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATIONMEASURES

D.1. Location Issues

(i) Inundation Management and Prevention

Following completion of the GMPN project, the water levels in the reservoirwill rise approximately six meters above pre-construction levels. The total inundated areais estimated at approximately 6,735 mu (450 ha), including 2,537 mu (169 ha) of paddyfields and 1,498 mu (100 ha) of dry cultivated land. The area affected by inundation covers12 counties of Guigang city and Hengxian county.

During the primary stages of the GMPN project, engineering measures willbe taken to minimize loss of land and other economic assets due to inundation. Theseinclude reinforcement of existing dikes and construction of additional ones in key areas. Asa result of these measures, it appears that the GMPN project will not increase flood waterlevels during the rainy season and that any inundation will be in low-lying areas, below the

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design reservoir operating water level and primarily in the tributaries of the main channel.

Approximately 716 ha of land will be protected from inundation in 46 differentareas. Cultivated lands account for 576 ha of the protected area and the remaining 140 haincludes residential areas and economic installations. The total area to be inundated afterprevention measures are taken is 448 ha, of which cultivated land accounts for 268 ha.

There are currently 111 dikes and embankments with an area of 7,000 ha inthe reservoir vicinity. Of these, 78 embankments will be affected by inundation,approximately 46 of which will be rebuilt as part of the inundation prevention program.Embankment locations are shown in Figure 2.

(ii) Socio-economic impacts

The provincial government has taken considerable care to design the projectin a manner which will minimize disruption to area communities, economy, environment andhistorical sites. Where possible the project design has optimized use of protection measuresand suggested alternatives to minimize economic dislocation of farming communities. As aresult, it appears that no physical resettlement of communities is necessary since the projectreservoir area will be within the 10-year flood plane which currently has only ten houses.The occupants of these houses have required that a dike be built to protect their property andthe government has agreed to do this. The compensation program which has been formulatedto assist farmers who will lose their land still requires more detailed planning. The localgovernments which are responsible for this aspect of the project have already mobilizedteams which will assist in the project implementation at the grass roots level.

The lands of 12,696 people are potentially subject to inundation, howeverfollowing protective measures which will be taken as part of the construction project, theofficial estimate is reduced to 4743. All efforts will be made by the city and localgovernments to ensure economic relocation will take place within the same vicinity.

a) Agricultural Development Program

In order to offset the losses of land caused by inundation, the fullest possibleuse will be made of local natural resources. Farmlands that now provide only low ormedium yields will be upgraded through introduction of irrigation and intensive agriculturaltechniques. Wasteland and barren hills are to be reclaimed and irrigated for growing graincrops and planting trees and orchards. Aquaculture will also be expanded in the reservoir.Moreover, emphasis will be placed on agro-technical training to help the local populationimprove the agricultural productivity of their lands. Irrigation schemes are being developedfor the project area by local governments and as such no details are currently available.Economic mitigation measures are contained in Table 2 and Figure 3.

An estimated 1,849 mu (117 ha) of wasteland will be reclaimed to plant grain,oil-yielding crops, fruit trees and tea shrubs at an investment of 1475 yuan per mu. Another13,389 mu (893 ha) of farmland that currently provides only low or medium yields will beupgraded by improving farming methods, irrigation and drainage conditions, increasingfertilizer applications and introducing better seed varieties. An investment of 5.69 million

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yuan will be made which is expected to increase grain yields by 1,339 tons annually. Thecombined measures of reclaiming wasteland and upgrading marginal farmlands are expectedto re-employ an estimated 915 people.

In order to take advantage of the ideal local conditions for fruit production,an investment of 13.8 million yuan will be made to reclaim 4662.5 mu (311 ha) of wastelandto plant fruit trees. This is expected to generate an annual net income of 7.6 million yuan,enough tar're-employ an estimated 3,779 people.

Naturally, there will be a recovery period for agricultural production in thereservoir area after inundation occurs. Based on the measures described above, however,it is estimated that production levels and living standards of the relocated population will beregained by 1995.

b) Aquaculture and Forestry

Aquaculture investment will be concentrated in Guigang city. It will involveimproving existing fish ponds, investing in fish species and fry input. Some 252.8 ha of fishponds with yields of less than 50 kg per mu will be upgraded. With a planned investmentof 2.51 million yuan, 200 more fish fry are to be bred on every mu of fish pond. Lingmengreservoir in Xingtang township will also be developed for fishing. Measures to developforestry resources include planting trees on 67 ha of reclaimed land in Baihe town, Henghecounty.

c) Employment and Training

Plans for re-employing those displaced from their lands includes both short-term and long-term components. In the short-term, displaced farmers will be givenemployment in the GMPN construction project and in township and village enterprises to beset up using development funds paid to local governments. A total of 5 million yuan willbe invested in setting up a cannery, a starch mill and a brick and tile yard. It is estimatedthat these enterprises will yield an annual net income of 2 million yuan, sufficient to employ300 people.

In the longer-term, funds will be provided to reclaim wastelands, upgrade low-yielding fields and plant orchards as described in the above section. Villagers wishing tocontinue farming will be assigned new lands. Those not satisfied with the quality of theirnew plots will be given financial incentives to move. It appears that some farmers,particularly the younger ones, would prefer direct cash compensation for their land so thatthey can undertake non-agrarian activities.

It is also recommended that the provincial government, Guigang municipality and theHengxian county government give priority to the relocated population in recruiting workers,cadres, and students, as well as in the provision of loans and tax breaks.

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TABLE 2ECONOMIC MITIGATION MEASURES

Itemn Unit Grnd Guigang City Hengxian CountyTotal Total Qitaoyu Xintang Watang Sibuai Shika Daling Total Baihe Yunbiao

Fanmland To Population People 4994 4138 2108 44 701 1097 30 158 856 560 296Be UpgiwJed To Be

Affected, In1995 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Area Mu 38815 10392.5 3392.5 154 2453.5 3839.5 553 2996 1960 1036

Ilveatment x I RMB 5.6900 4.4167 1.4418 0.0654 1.0427 1.6318 _ 0.2350 1.2733 0.S33 0.4403

Grain Ton 1338.85 1039.25 339.25 15.4 245.35 383.95 . 55.3 299.6 196.0 103.6lncre

Output Value x06 RMB 0.9372 0.7275 0.2375 0.0108 0.1717 0.2688 - 0.0387 0.2097 0.1372 0.0725

Nct income xlO'R RMB 0.6696 0.5197 0.1696 0.00077 0.1227 0.1920 - 0.0277 0.1499 0.0981 0.0518

New luAd To Area Mu 1849 1733 1502 . 45 186 116 30 86Be R1eclaimed Investment x1O' RMB 2.7274 2.5562 2.2155 _ _ . 0.0664 0.2743 0.1712 0.0443 0.1269

Grain Yield Ton 924.5 866.5 751.0 . . 22.5 93.0 58 15.0 43.0

Output Value xlO' R1MB 0.6471 0.6065 0.5257 _ 0.0157 0.0651 0.0406 0.0105 0.0301

Net Income xIO' R1MB 0.2959 0.2773 0.2403 _ 0.0062 0.0298 0.0186 0.0048 0.0138

Re-employed People 915 857 751 . 13 93 58 15 43Population

Fruit Tree Area Mu 4662.5 3459 1117 66 1051.5 1097 30 97.5 1203.5 817.5 286Platngr _ __Planting Investment x10' RbMB 13.8711 10.2906 3.3231 0.1964 3.1282 3.2635 0.0893 0.2901 3.5805 2.4321 1.1484

Output Vatilue xO' 1M 10.4773 7.6815 2.5133 0.1485 2.3659 2.3695 0.0649 21.94 2.7958 1.9620 0.8338

Net Income xlO' 11MB 7.5961 5.7442 1.8877 0.1115 1.7770 1.7552 0.0480 0.1648 1.8520 1.2344 0.6176

Re-employed People 3779 3041 1117 44 701 1097 17 65 738 545 193Population_~~Pplto __ ___ __ __ ___ ____ __ ________ _____

Township And Investmeat xO11 RMB 5.00 3.00 3.00 . . . 2.00 . 2.00V i l l a g e - -.__............................. ...

V Output Value xlO'R11MB 10.00 8.00 8.00 . . 2.00 2.00Enterprisca ________

Net Income xlOaRMB 2.00 1.60 1.60 _ _ _ 0.40 0.40 _

Rc-employed People 300 240 240 - - 60 - 60Population_ _ _ _ ____ P plt n _______ __ _ _ __ _ _ _ ___ ___ _ _ _ _ ._______ _______ __ _ _ ____ __ _ _ _ __ _ _ _ _ ___ __ __ __ ___

Social Development xlO'RMB 0.9988 0.8276 0.4216 0.00S 0.1402 0.2194 0.006 0.0316 0.1712 0.112 0.0592Development Inveatment

(iii) Flora and Fauna

The project ZOI is a major agricultural zone of Guangxi province. Substantialwetland reclamation and cultivation has occurred in this area and currently no undisturbedwetlands have been identified within the proposed project area.

Due to the generally poor quality of natural vegetative cover in the project areaand dominance of cultivated land, it is anticipated that construction of the Guigang anchoragewill not affect a large area of natural vegetative cover. The flooding of mud-flats and grassbeds, however, will impact many bird species and reptiles which inhabit these areas.

A major impact to wildlife resulting from this project will be the disruptionof tortoise and soft-shelled turtle habitat. The current existence of reservoirs in the lowerand upper sections of the river combined with the proposed new impoundment will create aclosed river system which may be unfavorable to the tortoise and soft-shelled turtle. Dueto their importance in the region, the following measures will be considered to assure theirsurvival.

A mitigation alternative for potential impacts to tortoise and soft-shell turtlehabitat is to allow surrounding fields which will be inundated to revert to wetlands. Capturedtortoise and soft-shell turtle species could then be relocated to these shallow wetland areasas well as to tributaries which will be enlarged after submergence. Furthermore, thesewetland areas would provide valuable habitat for wading and aquatic birds displaced bysubmergence in the immediate project vicinity. Secondly, a system of spawning plants maybe set up to provide tortoise and soft-shelled turtle to the local population in order todecrease pressure on the wild populations once they are relocated. The schedule for projectconstruction should be carefully planned in order to accommodate the tortoise and turtlebreeding season and thus assure a population size that will be amenable to relocation.

Prior to construction initiation, further surveys to locate endangered animalspecies in the project area may be necessary. In particular, care should be taken to ensurethat no China-autumn ducks, pangolin, masked civet, silver-ring snake, or white crane arenesting at or near the site. If any of these species are located, special mitigation plans willhave to be detailed. However, creation of new wetland areas surrounding the site will reducethe impacts on wading and aquatic bird species and possibly make relocation unnecessary.In the case of the silver-ring snake, relocation will be the only option.

Changes in the river ecosystem will effect aquatic plants in the reservoir anddownstream areas. Fish and hydrophyte species will have to adapt to direct and indirectman-made changes in environmental conditions. Some species will adapt while others willnot, experiencing reductions in population.

To mitigate losses of commercially valuable fish stock, four spawning facilitieswill be constructed and hatchery efforts will be focused on commercial species. Analternative is to thoroughly utilize all remaining water bodies for aquaculture, including riverbends. Employment opportunities from these mitigation measures will contribute to the 'i""economic development of migrants.

15

Wherever aquaculture would be developed in the project area, comprehensivewater quality monitoring will be conducted. If water quality assessments indicate thepresence of contaminants, including heavy metals, mitigation measures will be adopted.

Measures will be taken both during and after construction in order to minimizeimpacts to hydrophyte populations. Dunrng construction, special measures such as the useof sand bags and hay bails to control erosion and reduce sediment flow into the river coursewill be employed. Oil slick booms and clearnup equipment will be employed to assure thatoil and petroleum products from equipment used during construction will not contaminate theriver.

A major impact of the project on the aquatic environment is that of alteringriver flow velocity. Although the retention time in the reservoir is short, in order to sustainhydrophyte populations, it is important to limit stagnation in the water body by maintainingproper flow rates in the dry season. Continual monitoring of hydrophyte populations willbe carried out upstream and downstream of all the impoundments within the Yujiang riverand its major tributaries.

(iv) Impact on Cultural and Historical Properties

Several of the cultural and historical sites mentioned earlier, including theancient kiln site, :;he Nan dynasty burial mounds, the Mother Dragon Temple, Fubo Templeand the Haitang bridge, are either well removed from the reservoir or are elevated above themaximum design storage water level and as such will not be impacted by the project. Insome eases such as Fubo Temple, the river banks below the site may be de-stabilized due totie elevated water level. Therefore slope protection and reinforcement measures may benecessary to ensure site stability and shall be performed as needed.

Thirteen cultural and historic sites will be affected by inundation. One of themis the ruins of an ancient city from between the Nan and Qing dynasties, while the othertwelve are Neolithic age relics. Since the water level will rise and the passing of largevessels will cause bank erosion, bank collapse will be aggravated and may encroach on someof the more important sites. Thierefore protection measures ae--tses excavation and removal of r.iics have been not ssaryv and shall beimiplemented. L 4 . ii; I

(v) Coal Handling Terminals

Since the Nanniing coal handling terminal is still in the planning stages, thepre-feasibility report and the terminal siting will not be done until the beginning of thesecond-stage engineering. The coal handlirng terminal in Guigang has already been built andincludes conveyer and terminal protection devices including water sprinklers for dust control,and waste water collection and sedimentation facilities.

The general environmental impacts ide tified, and mitigation measures adoptedby the Guangxi Communications Depart-ment are as follows:

16

a) Principal Environmental Impacts

Loading and unloading operations at the coal dock will contribute toatmospheric pollution in the area, particularly during the fall and winter due to dry, windyconditions. Heavy summer precipitation will mix with the exposed coal in the yard, formingcontaminated runoff. Mitigation measures to control dust and prevent pollution of the harborand river course are needed.

b) Dust Prevention

Sprinklers will be used to control dust generated by loading and unloading ofcoal at the dock, and in the conveyer belt area. In each of the four coal storage areas, twowater pumps will be installed with 15 automatic sprinklers. Spraying will be conducted asoften as necessary in the coal yard, and along the harbor roadway.

C) Wastewater Treatment

A special drainage system will be constructed to handle runoff from the coalyard. Runoff will be drained into a sedimentation pond at a rate of 0.37 m 3 /s, where it willundergo a 20 minute sedimentation process. Discharged water should be able to meetnational discharge standards. Sludge from the pond will be collected and recycled.

D.2. Construction Issues

(i) Noise

Much of the construction equipment and activities including blasting and piledriving at the proposed project site will emit noise above 90 dB. This is above regulatedstandards in China (65 dB) and will cause hearing damage to construction workers in theevent of prolonged exposure. Therefore hearing protection is recommended for constructionworkers. The noise sources are approximately 900 meters away from the closest residentialunits and as such will not cause significant impacts. The major noise in the residential unitsis anticipated to be from the existing highway. Noise levels are anticipated to reachapproximately 57 dB during the peak construction times when 60 trucks will pass throughthe site each hour. The post construction activities are not anticipated to result in noiselevels above regulated standards.

(ii) Soil Erosion and Dust

One major environmental impact of construction is atmospheric degradationdue to fugitive dust and increased erosion resulting from removal of surface vegetation. Tominimize fugitive dust impacts, excavation and construction areas will be sprayed regularly.

The existing road connecting the construction area to the quarry is in poorcondition, and will be upgraded and covered with gravel in order to control dust. In general,dust resulting from traffic during project construction are not expected to seriously affect thelocal population, because the road to the quarry site is situated far away from the nearestvillage. This road will be managed and monitored by the Highway Bureau. Dirt roads will

17

be sprayed regularly to minimize dust, and traffic control measures will be instituted forsafety. The construction unit will be responsible for environmental monitoring.

Erosion control may be achieved by minimizing vegetation removal andexposed surfaces until necessary, and by installing silt traps and other erosion preventionmeasures. After construction is completed, the site and its surrounding areas will be restoredas closely as possible to their original state.

(iii) Atmospheric Pollution

During construction, air quality in the project area will be impacted byconstruction machinery, emissions from blasting, excavation and earth moving operations.Pollutants include NO,, S CO, CO2 and hydrocarbons, while CO and NO,, are the primaryemissions released by blasting activities.

The extent of air quality degradation during construction is dependent on theintensity of site activities. It is anticipated that serious air quality degradation will occur oncalm days (wind speed below 3 mWs) when site activities are at a peak and an atmosphericinversion occurs. Air pollution can only be controlled by reducing the number ofconstruction vehicles working in one area at a given time.

(iv) Surface Water Pollution ' i f lWater quality impacts due to biodegradable materials are anticipated to

improve slightly and deteriorate slightly in terms of metals and COD. Downstream waterflow will remain relatively stable with the exception of certain periods of the dry season,when water will be retained in the reservoir for electricity generating purposes, resulting indownstream water quality degradation.

Water quality will deteriorate downstream of the project due to the increasedconcentration of industrial effluent from the Liyujiang river, which discharges into theYujiang river in Guigang. Moreover, the significant increase in river traffic will increasethe scale of oil contamination in the project area, necessitating prevention and remediationmeasures.

Contributions of different types of wastewater should be analyzed beforedetermining priority prevention measures. It is necessary to carry out a comprehensive waterpollution control program for the area, for which the Guigang EPB will take a leading role. o Greater attention will also be paid to the control of contaminants from sugar and papermanufacturing, as well as to waste water collection and treatment both upstream anddownstream of the reservoir area. Although the direct impact of project activities on waterquality is limited, Guangxi Communications Department has agreed to assist in the program.A detailed water pollution control program will be carried out at a later time.

To control barge waste oil discharges, all motorized ships will be equippedwith oil-water separators to ensure that oil content in the discharged bilge water does notexceed 15 mg/I. Where installation of such devices is not feasible, then a waste oil containerwill be kept on hand. The navigation administration and navigation monitoring departments

18

will equip special ships to collect waste oil at regular intervals or by patrolling the river.

In the inland river area, an oil transport registration system has beenimplemented for 150 ton oil tankers and for common ships exceeding 400 tons. At present,however, waterway facilities in the project region do not have the capacity to dispose of ,,waste oil and other shipping wastes. In order to remedy these deficiencies, investments need -to be made in waste disposal equipment.

The potential for accidental spills will rise as a result of the significant increasein river traffic. Spill prevention strategy centers on enforcing shipping and lockmanagement. To prevent accidental spills of materials, a safety check will be enforced onall river vessels by navigation administration agencies at downstream and upstream handlingterminals and shipping sluice gates. A special check will be performed for vessels which arecarrying ecologically sensitive materials such as oil and coal. An accident mitigation planwill be formulated at a later time with input and advice from the Bank.

The GMPN project will create a free-flowing reservoir, whose hydraulic ih tretention time is very short. Therefore, no temperature gradations will occur at different,water depths, eutrophication is not anticipated and sedimentation will not vary significantly)7from present conditions.

(v) Economic Impacts of Construction

Construction of the dam is anticipated to last approximately five years. Duringthe peak period of construction in the second year, an estimated 3300 workers will beemployed on site. It is anticipated that infrastructure for the workers may encroach onadjacent economic activities such as agricultural production and cause some degree ofinterruption. River traffic will be at least temporarily disrupted, and local roads will becomecongested as large amounts of materials are transported back and forth in the constructionprocess. However, local residents will benefit economically from the opportunity to sellconstruction materials, food and other goods to the workers.

(vi) Public Health

Project construction will potentially exacerbate existing public health problemsin the region, particularly the incidence of water-borne diseases such as dysentery and viralhepatitis as well as vector borne diseases such as malaria. The high concentration of peoplein the reservoir area and resulting increase in the volume of sewage will potentially promotedisease transmission. Based on the experience of other hydro-electric power stations, it canbe anticipated that the incidence of epidemic diseases will increase, necessitating effectivecountermeasures. In particular, the threat of epidemic diseases brought in by the floatingpopulation in the area will need to be dealt with. Diseases transmitted by rats are likely toincrease as they are driven from their original habitats by rising water levels.

In order to protect public health during construction, strict hygienicrequirements will be placed on the living quarters of workers in the construction area,particularly the controlled disposal of solid waste (i.e. landfilling) and domestic sewage.Efforts will be made to avoid potential breeding grounds for rats, mosquitoes and flies, and

19

a disease prevention unit will be put in place to detect the spread of epidemic diseases.Drinking water supplies will be placed a sufficient distance away from solid waste disposalareas and septic tanks. In order to safeguard water quality in the reservoir after construction,the bottom of the reservoir will be cleaned six months prior to water storage.

(vii) Dredging and Widening of the Channel

The dredging component of this project is minimal. The purpose of dredgingin the GMPN project is to eliminate shoals and widen the shipping channel in order toincrease navigation capacity and safety. According to Class III navigation standards, channelwidth should no less than 50 meters. Shoals and submerged rocks should be dealt with basedon this standard. The dredging will be limited in time and location and as such will have aminimal environmental impact.

The navigation department will conduct annual dredging work on the channel.Dredged sludge will be tested for hazardous substances such as Hg and Cr. Where testsindicate the presence of hazardous substances, the sludge will be disposed of in approved,secure landfills. Because the river course is generally 300-500 meters wide, dre&'ing willnot affect bank stability. T

Underwater blasting will cause significant noise and vibration, killing fish andother aquatic organisms. Impacts on the local populace will be minimal, since the nearestvillages are located at a distance from potential blasting sites.

Dredging will cause disruption of benthos in the shallow water areas, andimpact tortoise and soft-shelled turtle species. The latter inhabit and nest in the mud-flatsand shallows of the main channel of the Yujiang river as well as its larger tributaries. ,

Disappearance of these shallow areas will disrupt the nesting grounds and burrows of thes t 2 vspecies. However, these impacts are limited to certain areas of the main river channel.

The duration and impact of turbidity during dredging is minimal. There arecurrently no regulations controlling short term impacts of turbidity and sediment loading ina waterway, although construction projects are required to control and minimize it. Themajor impact of sediment loading in the GMPN project is on the water inlet of Guigang cityand the water department will be responsible for monitoring and protecting water quality.

E. PROJECT ALTERNATIVES

The Guangxi Communications Department has investigated various methodsfor ensuring unimpeded river traffic in this segment of the Yujiang river. Dredging andblasting of shallow rocky areas has been investigated, yet neither will provide unrestrictedaccess during the dry season. As such, the project feasibility report identified the GMPNproject as the only means to insure access to 1000 ton barges by raising the water levelpermanently to high flow season levels. The additional benefits accrued from electricalpower generation and improved irrigation also adds to the economic feasibility of the projectwith relatively minimal impacts to the reservoir area.

20

F. INSTITUTIONAL REQUIREENTS AND ENVIRONMENTAL MONITORINGAND TRAINING PROGRAM

F.1. Institutional Arrangements

The reservoir area traverses Hengxian County and Guigang City and passesthrough a total of twelve villages and towns within the river valley. The majoradministrative authorities within the reservoir are the Office of the Mayor of Guigang Cityand the Director of Hengxian County. The population and resource management authoritypertaining to the proposed project is within these local offices. The reservoir and lockconstruction and management however occurs at the provincial level by the Xijiang RiverSecond Stage Project Headquarters (XRSSPH) which is under the Guangxi CommunicationsDepartment (Figure 4).

F.2 Environmental Monitoring

In order to evaluate environmental impacts during and after the reservoirconstruction, a monitoring plan has been formulated which meets regulatory requirements,and includes parameters, locations and frequency of monitoring. Short and long termenvironmental monitoring shall be performed to evaluate project impacts and trends so thatboth retroactive and pro-active measures may be taken. The scope for monitoring includesair, noise and water quality, ecology, bank failure and inundation. The monitored data willbe used to upgrade the project Environmental Action Plan (EAP) and formulate effectivemitigation measures.

AIR QUALITY MONITORING PLAN

Monitoring Place Item Frequency Sampling Responsible AgenciesHours

5 monitoring stations: one at the SO2 Once a month for 8:00 Yulin Environmentalbase of the dam, two in the NOI two successive 14:00 Monitoring Stationresidential area, one in the cement CO days 20:00mixing area and one near the Dust 2:00construction materials factory

ECOLOGICAL MONITORING PLAN

Monitoring Place Item Frequency ResponsibleAgency

Hengzhou, Guigang dam, Wusijiang phytoplankton Once per quarter Guigang EPB,river (3km from its confluence with zooplankton Hengxian EPBthe Yujiang river) benthon

__________ __________ _______ _ aquatic plants

21

WATER QUALITY MONITORING PLAN

Monitoring Place Item Frequency Sampling Hours Responsible(Each location with 3 Agenciessampling points andsampling at 3 depths)

Construction Stage pH, SS, COD, BOD, Cr6+, Once per quarter Yulin MonitoringCd, Pb, Zn, Cu, Hg, As Station

200 meters downstream water temperature, fluoride, 10:00of construction site transparency, total hardness,

dissolved oxygen, turbidity,500 meters upstream of chromaticity, ammonia 16:00Guigang water intake nitrogen, nitrate nitrogen,

nitrite nitrogen, totalphosphorus, phenol, totalbacteria, E. coli

Operation Stage pH, SS, COD, BOD, Cr', Once per quarter Yulin MonitoringCd, Pb, Zn, Cu, Hg, As Station

200 meters downstream water temperature, fluoride,from Hengxian Sugar transparency, total hardness, 10:00 Operation UnitFactory wastewater dissolved oxygen, turbidity,discharge outlet chromaticity, ammonia

nitrogen, nitrate nitrogen, 16:00Immediately upstream of nitrite nitrogen, totaldam phosphorus, phenol, total

bacteria, E. coli

stVA 4 t;4¢'f

NOISE MONITORING PLAN

Monitoring Place Item Frequency Sampling Responsible AgencyHours

Construction Stage Machinery noise Three times 8:00 Yulin Environmentalper month, 16:00 Monitoring Station

Three stations: at the edge Construction vehicle noise and on ad 24:00of the construction site, by hoc basis asthe road side, and outside neededthe residential area

BANK FAILURE AND INUNDATION MONITORING PLAN

Monitoring Place Item Frequency Responsible Agency

Bank failure: areas where Water levels (including As needed Guangxi Electrical Industrybank coUapse may occur groundwater levels and Design Institutewhich have not been rock variation)reinforced during Guangxi Communicationsconstruction Planning Design Institute

Inundation: potentiallyinundated areas (includingresidential areas andagricultural land)

22

Figure 4 Implementation organs of Xijiang River second stage project and working relations

Bank1 Communications Department of Guangxi

(entrustment) Personneltrainmanagement management p a other business related

I (etrusmen)Lersoneltraiingofplansipre-stage affairs o n to foreign funds

Designing Unit Guangxi Water __ I_f__

! . Transportation , Xijiang River second stage project headquarters international(entrustment)

Consulting Company | (entrustment) bidding company

o~~~~~~~~~~~~~~~~~

0L 0 -B l o0

=r~~~~~~~~~~~~~~~~~~~~~~0

0~~~~~~~~~~~~~~~~~~~~~~0

||Yulin Monitorngll Station p- - _ 1 L

and Guigang EPB _construction units, equipment manufacturing plants and material supplier-construction u "ts, equipment manufacturing plants and material supplier's _-irtXuu

An environmental management and monitoring station will be established inthe project area during the construction phase under joint supervision of the projectproponents and Guigang EPB. Following construction completion, the environmentalmanagement and monitoring of the project will be undertaken in support of the waterwaymanagement unit. It is anticipated that two technical personnel will be required to overseethe GMPN project environmental activities. Monitoring reports and mitigationrecommendations will be issued on a quarterly basis, within 45 days following completionof quarterly field monitoring activities.

Atmospheric, noise and water quality monitoring shall be performed by theYulin Environmental Monitoring Station during construction. Meteorological observationshall be conducted by the construction unit during construction and by the GMPN projectmanagement authority during the operation phase. Bank failure and inundation observationshall be conducted by survey and design institutes. Copies of all data and other relevantinformation will be submitted to the project environmental office for compilation, analysisand report preparation.

F.3. Environmental Capacity Building and Training

Construction phase and post-construction operations environmental impactsshall be monitored by a team of two full-time environmental managers. The trainingprogram will be designed to improve the capability of personnel to conduct environmentalmonitoring, evaluate impacts and implement mitigation measures.

The environmental management personnel need training in the environmentalaspects of the project and how to perform monitoring and environmental assessments. Localtraining capabilities in environmental monitoring and assessment are limited. Thereforetraining needs to be in the form of coursework, study tours and on-site practice with aqualified national or international specialist.

Training will increase capabilities in: air, water and biological sampling,monitoring and supervision; preparation of periodic environmental reports; and assistingregulatory agencies with enforcing environmental regulations and standards. The trainingwill also include identification of environmental impacts and implementation of mitigationmeasures for items such as: sedimentation due to dredging and blasting of the channel,reductions in vegetative cover, conditions of aquatic species, oil spills, etc.

The program will be implemented in two stages:

Phase I - at the beginning of construction (3 months) g e '>Phase II - at the beginning of operation (9 months) XA- r,AD

The total budget for the training program is US$ 80,000-O00,000.International funding will cover costs for tuition, living allowances, travel expenses andadministration.

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G. ENVIRONMENTAL ACTION PLAN BUDGET

A total of 109.19 million RMB will be provided for the EAP, includingprotection engineering expenses of 58.01 million RMB, reconstruction of specialized facilitiestotaling 7.6 million RMB, resettlement and economic development expenses of 38.8 millionRMB, reservoir bottom cleaning expenses of 0.26 million RMB, hydrological stationconstruction expenses of 0.05 million RMB, and environmental compensation expenses of4.4 million RMB. A detailed cost estimation is given in Table 3. Environmental equipmentexpenditures are listed in Table 4.

TABLE 3ENVIRONMENTAL ACTION PLAN BUDGET

Item Cost (Thousands Guigang Hengxianof Yuan) City County

I. Engineering Measures 58095

1) 46 Engineering Facilities 36513 33926 2587

2) Flood Gates 2480 1320 1160

3) Inundation and Bank Collapse 16600Prevention

4) Design 2502

II. Reconstruction of Specialized 7633Facilities

1) Transportation 5912 3304 2608

2) 10KV Electricity 10 5 5Transmission LineReconstruction

3) Rebuilding Tele- 0.6 0.6communication lines

4) Excavation of Historical 1147Relics

5) Design 267 .

6) Contingency 296

III. Resettlement 38791 27184 11606

1) Land Requisition and 25594 18514 7080Resettlement Compensation

2) Home Reconstruction 16 13 3Compensation

25

3) Water Conservancy Facility 4628 2322 2306Compensation

4) Administration 605 417 188

5) Survey and Design 605 417 188

6) Preparation 1512 1042 470

7) Land Upgrading 5831 4459 1372

IV. Reservoir Bottom Cleaning 261

1) Cleaning Engineering 250

2) Design 11V. Hydrological Station 50Construction

VI. Environmental 4359Compensation Fund _

1) Spawning Ground 1000Reconstruction

2) Bank Protection Reforestation 750

3) Epidemic Prevention 158

4) Noise, Emissions and 300Garbage Control

5) Wastewater Treatment 200Facilities

6) Monitoring Instruments 327

7) Construction Monitoring 250

8) Environmental Monitoring 333

9) Afforestation 100

10) Environmental Training' 870

10) Other 71 _

Total 109189

The equivalent of US$100,000 is allocated only for training

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TABLE 4ENVIRONMENITAL PROTECTION EQUIPMENT AND COSTS

Equipment Number Price (thousands Cost (thousands II. __________________________________ _________ of Yuan) of Yuan)

Atomic absorption 1 75 75spectrophotometer

Gas chromatography 1 29 29

721 spectrophotometer 1 15 15

Microscope 1 8 8

Automatic water quality sampler 2 8 16

Dust sampler 1 15 15

I Sonar meter 2 8 16

SO, analyzer 1 14 14

NO, analyzer { 1 14 14

Air sampler 2 9 18

Automatic aerovane 2 8 16

Thermometer 4 8 32

Medical glass matter 15

Other 29

| Installation 15

Total 327 J

L. PUBLIC INVOLVEMENT AND COMPENSATION

When the GMPN project inundation area was estimated, the GCD transferredthe information to the Hengxian and Guigang local authorities. Teams drawn from the localpopulation were then organized to delineate impacted properties and determine the affectedpopulation size.

Once information was compiled, the leaders at the city and county level withassistance from GCD established working groups to discuss the impact that the project wouldhave on the local population and to determine a compensation system for those displacedfrom their land. Implementation and monitoning responsibility rests with local governments.'rhe compensation scheme was formulated in accordance with these regulations and addresses'both individual and community requirements. The compensation scheme is two-fold: 60percent of funds distributed would be provided directly to individual farmers to ensure their

27

livelihood for up to one year until new land is assigned; the other 40 percent would go tolocal governments to address infrastructure needs including establishment of township andvillage enterprises, and the social costs of re-employment.

Village leaders were consulted to determine the compensation to be awardedto each farmer, based on the quantity and quality of land as well as annual income. Thelevel was established at approximately 10,000 yuan per mu. In September 1993, a committeewas formed under GCD which with input from local authorities will hold public meetings inimpacted areas within the next two years to announce the compensation scheme and signcontracts with farmers willing to relinquish their lands. Based on initial surveys theparticipants can be categorized into three groups:

a. Those willing to relinquish their land and accept financial compensation anda new plot of land.

b. Those wishing to receive higher compensation to leave farming and eitherbegin their own enterprise or be retrained.

c. Those unwilling to leave their land and requiring protection measures to betaken.

It appears that the majority of affected farmers fall into these categories andcan be accommodated by the government. The one requirement voiced by all concernedhowever is that relocation to another area is not acceptable.

The compensation scheme for different types of land is as follows:

1. Rice paddy fields (including sugarcane) = six times the annual product valueper mu.

2. Dry land = four times the annual product value per mu.

3. Sugarcane land = four times the annual product value per mu.

4. Fish ponds = five times the annual product value per mu.

5. Grassland = two times the annual product value per mu for Guigang city andHengxian.

6. Forest land = seven times the annual product value per mu.

Economic reallocation compensation fees are calculated as follows:resettlement factor x average cultivated land per person x 1.1, for which the resettlementfactor = 3 per person, and 1.1 = the rate of population increase.

A reservoir inundation compensation budget for the GMPN project is presentedin Table 5. Table 6 contains an annual compensation schedule for reservoir inundationmanagement.

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TABLE 5RESERVOIR INUNDATION COMPENSATION BUDGET FOR THE GMPN PROJECT

Item Amount (thousands of Notesyuan)

I. Economic Reallocation 40720

1) Land Acquisition 32054

2) Residence Reconstruction 24

3) Water Conservancy and 5921Hydro-electric Equipment

4) Design, Administration 2721and Contingency Costs

II. Rebuilding of Special 8790Items

III. Excavation of Relics 1319

VI. Protection Works 55594

V. Reservoir Bottom 270Cleaning

VI. Survey and Design 2909 4.5% sum of II, IV, V

VII. Contingency Cost 440 5% of III

Total Investment 1100042

TABLE 6ANNUAL COMPENSATION SCHEDULE FORRESERVOIR INUNDATION MANAGEMENT

Year Amount (thousands Percentage Usage of Fundsof yuan) of Total

1 4050 3.7 production development, project design and setting upeconomic rnitigation organs

2 32253 29.3 production development, protection engineering, excavationof cultural relics, rebuilding of special facilities



5 14118 12.8 production development, protection engineering, rebuildingof special facilities, cleaning of reservoir bottom

6 11598 10.4 production development, rebuilding of special facilities

Total 110042 100

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The total estimated compensation for the reservoir region is reportedly 110,041,700yuan. This amount is deemed the minimum necessary to restore and develop the economicproductivity of the impacted areas.

Compensation measures are based on the following laws and regulations: LandRegulations of P.R.C.; Land Regulations of Guangxi Autonomous Region; Design Standardsfor the Management of Reservoir Inundation in Water Conservancy and HydroelectricProjects of Guangxi Autonomous Region; and Decree No. 74 of the National People'sCongress on Compensation for Land Acquisition and Resettlement in the Construction ofLarge and Medium-Size Water Conservancy and Hydroelectric Projects.

According to national regulations governing construction projects, local governments,in this case the Guigang municipal government and Hengxian county government, areresponsible for overseeing land acquisition, mitigation measures for the affected population,and inundation management. Land acquisition and agricultural development measures willbe carried out by a special committee organized by the Land Administration Bureaus of thelocal governments, together with village officers and village representatives.

Mitigation measures for the local population will be carried out by the LandAdministration Bureau and the Civil Administration Bureau of the local governments.Highway and water conservancy works will be administered by the CommunicationsDepartment and the Hydroelectric Bureau of the local governments. In addition, the GuangxiCommunications Department will dispatch engineers to supervise project implementation.

J. SUMMARY AND CONCLUSIONS

The likely negative impacts of the GMPN project are considered acceptableand are offset by its positive economic and social ramifications. By improving thenavigability of the Xijiang river system, which is a vital route for the transportation of rawmaterials and manufactured goods, the project will spur economic development in Guangxiand adjacent provinces. Additional benefits include hydropower generation and increasedavailability of irrigation water.

The principle impacts on the environment include disruption of areas adjacentto the project site, soil erosion, temporary water quality decline, and air quality degradationresulting from the construction process. Impacts to terrestrial and aquatic resources appearsto be minimal since the proposed project will be located on a highly regulated waterway andwill not create significantly new conditions.

Potential impacts may occur due to the large labor population which the projectwill attract. Health and sanitation impacts will have to be managed by placing strict hygienicrequirements on workers' living quarters, controlling solid waste disposal and disposing ofsewage in septic tanks. Thirteen cultural and historic sites will be affected by inundation,necessitating protection measures and excavation in some cases.

The overall project impacts are minimized due to relatively good planning andimplementation strategies on the part of the project proponents. Despite inundation causedby increased water levels in the reservoir, engineering measures preclude the need for

30

physical resettlement of the affected population. For those whose lands are inundated,compensation will be provided and a comprehensive program to upgrade marginal fields,reclaim wastelands, and expand aquaculture will be implemented.

31

KEY ELEMENTS OF THE EAP/EMP FOR THE GUIGANG MULTIPURPOSE NAVIGATION PROJECTEnvironmental Issue Action Taken/To be taken Responsible Entity Remarks

A. Construction Phase

1. Air pollution Road surfaces, excavation areas and construction areas will be sprayed Construction unitand kept moist for dust control.

The numnber of construction vehicles working in one area at a given Construction unittime will be restricted.

2. Noise l]nnecessary noise from blasting, pile driving and other construction Construction unitactivities will be controlled and minimized.

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3. Surface water pollution The reservoir bottom will be cleaned before water storage begins, Construction unitincluding removal of vegetation, construction debris and other wastes. ,' of S1a4-'

g,ffisX~12 ,,,>, w rv vof !Z'? 5t bS,74. Soil erosion eroslon control will be achieved by~ rmntzng vegetation removal and X Construction unit

exposed surfaces until required by construction, and by installing silttraps and other erosion prevention measures.

5. Ecology The project construction schedule will be planned in order to Guigang EPB, Hengxian EPBaccomodate the tortoise and turtle breeding season and thus assure a Construction unitpopulation size that will be amenable to relocation.

Further surveys will be undertaken where necessary to locate d Guigang EPB Hengxian EPBendangered animal species in the project area. -sliuV a i

6. inundation During the primary stages of the project, engineering measures will be Construction unittaken to minimize losses of land and other economic assets due toinundation, including reinforcement of existing dikes, construction ofadditional ones in key areas and building of drainage stations.

Environmental Issue Action Taken/To be Taken Responsible Entity Remarks

7. Public healthIn order to prevent the outbreak of epidemics, strict hygienic Construction unitrequirements will be placed on the construction area and workers' Guigang Health Departmentliving quarters, particularly through the controlled disposal of solidwaste (i.e. landfilling) and the use of septic tanks to dispose ofdomestic sewage.

Efforts will be made to avoid potential breeding grounds for rats, Construction unitmosquitoes and flies, and a disease prevention unit will be set up to Guigang Health Departmentdetect the spread of epidemic diseases.

Drinking water supplies will be placed at a sufficient distance away Water Supply Companyfrom solid waste disposal areas and septic tanks. Guigang Health Department

8. Cultural and historicsites Slope protection and reinforcement measures will be undertaken where Construction unit

necessary to ensure the stability of cultural and historic sites. Guangxi Province Cultural Relics

1 ES f4/1uvv / 'd L& cr,0( e DepartmentrExcavation and removal or iIybe-e in-some eased( such Construction unit

as the Neolithic age relics located near the dam, as well as the Guangxi Province Cultural RelicsShangjiangkou and Jiaoyiechong relics. Department

9. Relocation managementand economic A dike built to protect the ten houses in danger of inundation will Guigang and Hengxian countiesdevelopment preclude the need for physical resettlement of communities.

Farmers who lose their lands due to construction will be compensated. Guigang and Hengxian countiesB. Post-Construction

Phase

1. Surface water pollution Comprehensive control of discharges from existing contamination Guigang EPBsources will be implemented by the local EPB.

Greater attention will be paid to the control of contaminants from sugar Guigang EPB, Hengxian EPBand paper manufacturing, as well as waste water collection andtreatment both upstream and downstream of the reservoir area.

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Environmental Issue Action Taken/To Be Taken Responsible Entity Remaarks

To control barge waste oil discharges, all motorized ships will be Navigation administration andequipped with oil-water separators to ensure that oil content in the navigation monitoring departmentsdischarged bilge water does not exceed 15 mg/I. Where installation ofsuch devices is not feasible, a waste oil container will be kept on hand.Special ships will be equipped to collect waste oil at regular intervalsor by patro11lipg the *ver.~ ( ' ~~t,af

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2. Soil erosion The construction site and surrounding areas wilI be restored as closely Construction unitas possible to their original state.

3. Ecology Surrounding fields subject to inundation can be allowed to revert to Guigang EPB, Hengxian EPBwetlands in order to mitigate potential impacts to tortoise and soft-shellturtle populations. Captured tortoise and soft-shell turtle species couldthen be relocated to these shallow wetland areas as well as to tributarieswhich will be enlarged after submergence.

These wetlands areas will also provide valuable habitat for wading and Guigang EPB, Hengxian EPBaquatic birds displaced by submergence in the immediate projectvicinity.

A system of spawning grounds will be set up to provide tortoises and Guigang EPB, Hengxian EPBsoft-shell turtles to the local population in order to decrease pressure onthe wild populations once they are relocated.

In order to maintain hydrophyte populations, stagnation in the water Guigang EPB, Hengxian EPBbody will be prevented by sustaining proper flow rates in the dryseason.

To mitigate losses of economically valuable fish stock, hatchery efforts Guigang EPB, Hengxian EPBwill be focused on commercial species.

'nvi roeniFsta Action Taken/To B3e Tae Ribes il Ren i;ais

4. Cultural and historic Slope protection and reinforcement will be undertaken where necessary Operation unitsites to ensure the stability of cultural and historic sites. Guangxi Province Cultural Relics

Deparlment IS. Relocation management The fullest possible use will be made of local natural resources in order Guigang and Hengxian counties

and economic to offset losses of land caused by inundation, including upgradingdevelopment marginal lands, reclaiming wastelands, planting orchards, expanding

aquaculture in the reservoir, and giving agro-technical training to thelocal population to help them improve the productivity of their lands.

Farmers who lose their lands due to inundation will be compensated. Guigang and Hengxian counties

6. Bank collapse Surface p<v-tection and slope reinforcement measures will be adopted, Operation unitincluding afforestation and placement of engineered rock slopes orwalls along impacted banks.

C. EnvironmentalMonitoring Monitoring of construction noise will be conducted three times per Yulin Environmnental Monitoring

1. Environmental month, and on an adhoc basis as needed. There are monitoring stations Stationmonitoring in in three locations: at the base of the dam, in the residential area and byconstruction phase the construction roadside.

Air quality monitoring will be conducted once a month for two Yulin Environmental Monitoringsuccessive days, four times each day. Monitored items include: SO2 , StationNO., CO and dust. There are five monitoring stations: one at the baseof the dam, two in the residential area, one in the cement mixing area,and one near the construction materials factory.

Water quality monitoring will be conducted once per quarter, two times Yulin Environmental Monitoringa day, at two locations: 200 meters downstream of the construction Stationsite, and 500 meters upstream of Guigang water intake. Each locationhas 3 sampling points, with sampling at 3 depths: Monitored itemsinclude pH, SS, COD, BOD, DO, Cr4+, Cd, Pb, Zn, Cu, Hg, As,water temperature, flouride, transparency, total hardness, turbidity,chromaticity, ammonia nitrogen, nitrate nitrogen, nitrite nitrogen, totalphosphorus, phenol, total bacteria and E. coli.

Environmental Issue Action Taken/To Be Taken Responsible Entity Remarks

2. Environmental Water quality monitoring will be conducted once per quarter, two times Yulin Monitoring Stationmonitoring in a day in the following two locations: 200 meters downstream from Operation unitpost-construction Hengxian Sugar Factory wastewater discharge outlet, and immediatelyphase upstream of the dam. Monitored items include pH, SS, COD, BOD,

DO, Cr6", Cd, Pb, Zn, Cu, Hg, As, water temperature, flouride,transparency, total hardness, turbidity, chromaticity, ammonia nitrogen,nitrate nitrogen, nitrite nitrogen, total phosphorus, phenol, total bacteriaand E. coli.

Ecological monitoring will be conducted once a quarter in three Guigang EPB, Hengxian EPBlocations: Hengzhou, the Guigang dam, and at the Wusijiang river, 3km from its confluence with the Yujiang river. Monitored itemsinclude phytoplankton, zooplankton, benthon and aquatic plants,

Bank failure monitoring will be conducted as needed in areas where Guangxi Electrical Industrybank collapse may occur which have not been reinforced during Design Instituteconstruction. Inundation monitoring will be conducted as needed in Guangxi Communicationspotentially inundated areas, including residential areas andi'agricultural Planning Design Institutelands. /

OUl#K L 5 A A j

LIST OF DOCUMENTS

The following materials were used in preparation of the EIA report:

a. Feasibility Study Report on the Second Stage of the China Xijiang Navigation Projectb. Preliminary Design Report on the Second Stage of the China Xijiang Navigation Projectc. Environmental Impact Assessment of the Guigang Multipurpose Navigation Projectd. Environmental Impact Assessment Supplementary Report of the Guigang Multipurpose

Navigation Projecte. Aquatic Organisms and Fisheries Impact Assessment Reportf. Unpublished Internal Documents Providing Information on Environmental and Socio-

economic Impacts

37