Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Dioxins Reduction from the Pulp and Paper Industry (P125528) EAST ASIA AND PACIFIC | China | Environment & Natural Resources Global Practice | Global Environment Project | Investment Project Financing | FY 2012 | Seq No: 14 | ARCHIVED on 29-Jun-2019 | ISR37775 | Implementing Agencies: International Economic Cooperation Office of Ministry of Ecology and Environment, People's Republic of China Key Dates Key Project Dates Bank Approval Date: 29-Mar-2012 Effectiveness Date: 19-Jun-2012 Planned Mid Term Review Date: 11-Dec-2015 Actual Mid-Term Review Date: 01-Dec-2015 Original Closing Date: 30-Jun-2017 Revised Closing Date: 30-Jun-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives are to: (a) demonstrate the result of adoption of best available techniques and best environmental practices (BAT/BEP) in four selected non-wood pulp mills; and (b) support China in developing and adopting a long-term action plan to guide the promotion of a sector-wide BAT/BEP adoption. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name BAT/BEP Investment in Participating Mills and Promotion of BAT/BEP in Selected Mills:(Cost $63.97 M) National Action Plan for Sector-Wide Replication:(Cost $3.23 M) Monitoring and Evaluation:(Cost $1.30 M) Project Management:(Cost $3.66 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project, supported by the World Bank and the Global Environment Facility, is closing 30 June 2019, having successfully accomplished its objectives. Three demonstration mills in Sichuan (Jinfu mill), Henan (Baiyun) and Hunan (Linyuan) provinces have successfully completed investments in Best Available Techniques / Best Environmental Practices (BAT/BEP) for reduction of dioxins releases, a family of toxic pollutants controlled under the Stockholm Convention on Persistent Organic Pollutants, and Chinese policies, laws and regulations. The experience in their 6/29/2019 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) renovation process and benefits have been documented, representing models for other mills using bamboo, reed or straw as raw material. Similarly, another three bagasse-based mills in Guangxi received technical assistance support, ensuring that the process of BAT/BEP is also documented for that fiber. The China Paper Association has developed and issued a National Action Plan that mandates that the sector is free of elemental chlorine by 2025. This is complemented by a number of regulatory instruments that were directly or in part supported by the Project, including the "Action Plan for Prevention and Control of Water Pollution" issued by the State Council of China in 2015 and the “General Guidelines on BAT/BEP for Pollution Prevention and Control of Paper Making Industry” issued by MEE in January 2018 which ensures that no new mill will be based on the elemental chlorine process for bleaching. The project also supported capacity building for regulatory authorities, including the establishment of eight laboratories trained to use the bioassay technique for cost-effective dioxins screening and analysis. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Substantial Substantial Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Demonstrate the results of BAT/BEP adoption in four selected non-wood pulp mills IN00720555 ►Reduced UPOPs releases in the four non-wood fiber mills supported by the Project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: 0.001; Sichuan Jinfu: 0.023; Sichuan Jinfu: 0.078; Sichuan Jinfu: 0.001; Hunan Linyuan: 0.002; Hunan Linyuan: 0.034; Hunan Linyuan: 0.113; Hunan Linyuan: 0.002; Henan Baiyun: 0.015; Henan Baiyun: 0.020; Value Henan Baiyun: 0.067; Henan Baiyun: 0.015; Guangxi Pumiao: Guangxi Pumiao: Guangxi Pumiao: 0.126 Guangxi Pumiao: 0.014 0.014 0.036. Date 31-May-2015 10-Aug-2017 24-Jun-2019 30-Jun-2019 Comments: Target 75% Achieved 6/29/2019 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Target met at Project closing in three of four mills. The first PDO indicator relates to UPOPs releases reduced in four non-wood fiber mills supported by the project, and supports the objective to demonstrate the results of BAT/BEP adoption in four selected non- wood pulp mills. This indicator is achieved through (1) investment support in three non-wood mills (demonstrating BAT/BEP for bamboo, reed and straw); and (2) demonstration of BAT/BEP in bagasse-based mills through both assessment of the dioxin reduction from bagasse-based mills, and through the technical assistance support to three other bagasse-based mills in Guangxi further to the September 2018 restructuring. Regarding the Pumiao mill, as recorded in earlier project supervision aide-memoire, although the mill pulled out of the project and closed, it had implemented the proposed BAT/BEP renovation, and the experience was collated and is referenced in the National Action Plan issued by the China Paper Association. Unit of Measure: g TEQ/a UPOPs released. This measures the toxic equivalent (TEQ) of the UPOPs released by each mill annually. TEQ is the internationally agreed method to report on the concentration of the family ofH dioxins. In the June 2016 restructuring, the Pumiao Mill was dropped as a participating demo mill for BAT/BEP investment because it had closed down. A similar mill, Guangxi Nanhua, was used to provide information on reductions to be expected for bagasse-based mills. Testing of dioxins (i.e., UPOPs) baselines and final emissions (verification) were conducted by an accredited independent monitoring consultant. The remaining three demonstration mills completed BAT/BEP investments during 2015-2016, with BAT/BEP verification completed in 2017, and this is therefore the last value that is reported here. The End target was set as 70% reduction of the baselines, thereby meeting Chinese and international standards and in line with the BAT/BEP guidalines adopted by the Stockholm Convention. Dioxins release reduction from the baseline for the three mills was calculated at 98.1%, 98.5% and 77.2% respectively, by the independent verification consultant (Report on Dioxins monitoring at the three demonstrations mills, Aug 2017). 88.2% Dioxins release reduction was estimated for bagasse-based millis using verifed reductions from a similar Guangxi Nanhua mill assessed to represent a good model for bagasse-based mills Develop a long-term action plan to guide the promotion of sector-wide BAT/BEP adoption IN00720586 ►Adoption of a long-term action plan for the sector's UPOPs reduction (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NAP completed and NAP completed and NAP issued by Value 0.00 approved by committee approved by Chinese Paper of experts committee of experts Association Date 30-Jun-2012 07-Sep-2018 24-Jun-2019 31-Dec-2018 Target 100% Achieved The second PDO indicator relates to the adoption of the National Action Plan for Dioxins Reduction in the Pulp and Paper Industry (NAP) by the China Paper Association, and addresses the objective of developing a long-term action plan to guide the promotion of sector-wide BAT/BEP adoption. The Action Plan that was adopted meets this objective, and mandates that the pulp and paper sector be fully free of elemental chlorine bleaching by 2025. The NAP was adopted and issued by the CPA on 23 Novemebr, 2018. The NAP consists of the "China Paper Association’s Guiding Opinions on Promoting Dioxin Emissions Reduction in Pulp and Paper Industry", together with a detailed "Compilation Manual". The NAP is supported on the regulatory and enforcement side by the broader "General Guidelines on BAT/BEP for Pollution Prevention and Control of Paper Making Industry". These guidelines include dioxin Comments: specific elements developed under the Project and were issued by MEE in January 2018. It should also be noted that a large number of supporting documents were produced through the project, in support of the long-term sustainable sector-wide adoption of BAT/BEP, including a BAT/BEP Design Technical Manual for Non-wood Pulp; Guideline for Available Techniques of Pollution Prevention and Control for Pulp and Paper Industry issued by MEE; Technical Guidelines for Pollution Discharge Licensing in Pulp and Paper Industry in Guangxi; Technical Manual of Pollution Prevention in Pulp and Paper Industry in Guangxi; Technical Specification for Issuance of Discharge Permit in Paper Industry (under review and to be issued by MEE); development of a standard for Bioassay-based Solid Waste- screening of PCDD/Fs; National guidance document issued by MEE on Technical Policy of Dioxin Pollution Prevention and Control in Key industries; inclusion of dioxin reduction measures in the Action 6/29/2019 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Plan for Water Pollution Prevention and Control issued by the State Council in 2015; and the Evaluation Index System of Cleaner Production in Pulp and Paper Industry. Intermediate Results Indicators by Components 1. BAT/BEP Investment in Participating Mills and Promotion of BAT/BEP Investment in Selected Mills IN00720587 ►Completion of BAT/BEP investment (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 29-Mar-2012 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 75% Achieved Three demonstration mills completed BAT/BEP investments during 2015-2016, with BAT/BEP verification completed in 2017. The fourth, Pumiao mill, dropped out of the project. The end target was not revised Comments: downward in previous restructurings to be consistent with the PDO level result indicator. However, since Pumiao has dropped out of the project, this indicator is 75% achieved (3 out of 4) at project closing. IN00720590 ►Numbers of selected mills to develop BAT/BEP investment plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 2.00 Date 30-Jun-2016 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 100% Achieved Technical Assistance Sub-Grant agreements were signed with three bagasse-based mills in Guangxi to support development of investment plans. Comments: The end target was modified from 4 to 2 as result of the Sep 2018 restructuring, following further appraisal of activity cost and budget. IN00720592 ►COD discharge per unit of non-wood pulp production from the four mills (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: Sichuan Jinfu: 3.01; Sichuan Jinfu: 1.94; Sichuan Jinfu: 4.83; 10.2.Hunan Linyuan: Hunan Linyuan: 4.09; Hunan Linyuan: 1.42; Hunan Linyuan:4.65; Value 5.28; Henan Baiyun: Henan Baiyun: 1.59; Henan Baiyun: 1.67; Henan Baiyun: 3.33; 4.73; Guangxi Nanning Guangxi Nanning Guangxi Nanning Guangxi Pumiao: NA. Pumiao: 13.5. Pumiao: NA. Pumiao: NA. Date 29-Mar-2012 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 100% Achieved Effluents of the three participating mills meet national standards. Kg COD discharged/air dry ton of pulp. The results of COD, NH3-N and Water Consumption were reported by local environmental protection Comments: bureau’s regular inspection monitoring. Following the completion of BAT/BEP investments in the demonstration mills, the regular monitoring results have consistently complied with the national standards (i.e., the end targets). IN00720594 ►NH3-N discharge per unit of non-wood pulp production from the four mills (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: Sichuan Jinfu: Sichuan Jinfu: 0.0786; Sichuan Jinfu: 0.43; Value 0.72;Hunan Linyuan: 0.35;Hunan Linyuan: Hunan Linyuan: 0.10; Hunan LInyuan:0.41 0.45;Henan Baiyun: 0.29; Henan Baiyun: Henan Baiyun: 0.128 Henan Baiyun:0.15 6/29/2019 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) 0.21;Guangxi Nanning 0.12;Guangxi Nanning ;Guangxi Nanning Guangxi Pumiao: NA Pumiao: 0.18; Pumiao: NA. Pumiao: NA. Date 29-Mar-2012 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 100% Achieved Comments: Effluents of the three participating mills meet national standards. IN00720596 ►Water consumption per unit of non-wood pulp production from the mills (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: 72.0 Sichuan Jinfu: 39.87; Sichuan Jinfu: 25.3; Sichuan Jinfu: 53.6 Hunan Linyuan:59.0 Hunan Linyuan: 39.07; Hunan Linyuan: 42.3; Hunan Linyuan:52.2 Value Henan Baiyun:70.0 Henan Baiyun: 41.6; Henan Baiyun: 45; Henan Baiyun:49.2 Guangxi Pumiao: 94.4 Guangxi Pumiao: NA; Guangxi Pumiao: NA; Guangxi Pumiao: NA Date 29-Mar-2012 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 100% Achieved Comments: Water consumption of the three participating mills is reduced. 2. National Action Plan for Sector-Wide Replication IN00720588 ►Sectorwide BAT/BEP Guideline developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 Issued Issued Issued Date 30-Jun-2012 28-Feb-2018 25-Jun-2019 30-Jun-2018 Target 100% Achieved Comments: Activity completed and end target fully achieved IN00720591 ►UPOPs monitoring guideline for the pulp and paper sector developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Issued and Issued and Value 0.00 Issued and implemented. implemented. implemented Date 30-Jun-2012 28-Feb-2018 25-Jun-2019 30-Jun-2017 Target 100% Achieved Activities completed and end target fully achieved – Guidelines issued and implemented by four Comments: demonstration province EPBs (four dioxin bioassay labs) IN00720593 ►National workshops on BAT/BEP knowledge dissemination to mills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 30-Jun-2012 28-Feb-2018 25-Jun-2019 30-Jun-2018 Target 100% Achieved Activities completed and end target fully achieved (Total number of participants is 56: 2017, 2 Comments: workshops/36 participants; 2018, 1 more workshop, 20 more participants). IN00720595 ►National training on BAT/BEP for design institutes (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/29/2019 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Value 0.00 1.00 1.00 1.00 Date 30-Jun-2012 28-Feb-2018 25-Jun-2019 30-Jun-2017 Target 100% Achieved Comments: Activity completed and end target fully achieved - one training workshop delivered for design institutes. IN00720597 ►Training on rapid method dioxins monitoring for provincial and municipal EPBs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 5.00 4.00 Date 30-Jun-2012 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 125% Achieved Activities completed and end target fully achieved. Comments: In 2014, 1 training course was attended by 4 EPBs; in 2016, 2 courses were attended by 8 EPBs; in 2018, 1 course was attended by 4 EPBs; and in FY2019, one training course took place with 4 EPBs. 3. Monitoring and Evaluation IN00720589 ►Increased UPOPs monitoring for pulp and paper mills in the participating provinces. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 16 mills monitored for Value 0.00 8.00 16.00 dioxins emissions Date 30-Jun-2012 17-Sep-2018 18-Jun-2019 30-Jun-2019 Target 100% Achieved This is an annual target of number of mills monitored that year. In 2017 (year 5), four labs were tasked to monitor 3 to 4 mills each. In 2018 there were 4 active labs and each was tasked with monitoring 2 mills Comments: only; hence the reduction in number of monitored mills for that year. The target for 2019, and end-target, is 16: there are 8 laboratories supported in 8 provinces, with each lab responsible for monitoring at least 2 mills. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P125528 TF-11898 Effective USD 15.00 15.00 0.00 14.81 0.19 99% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125528 TF-11898 Effective 25-May-2012 25-May-2012 19-Jun-2012 30-Jun-2017 30-Jun-2019 Cumulative Disbursements 6/29/2019 Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Restructuring History Level 2 Approved on 15-Nov-2014 ,Level 2 Approved on 28-Jun-2016 ,Level 2 Approved on 27-Jun-2018 ,Level 2 Approved on 27-Sep-2018 Related Project(s) There are no related projects. 6/29/2019 Page 7 of 7