INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA3858 Public Disclosure Copy Date ISDS Prepared/Updated: 07-May-2013 Date ISDS Approved/Disclosed: 11-Dec-2012, 08-May-2013 I. BASIC INFORMATION 1. Basic Project Data Country: China Project ID: P126813 Project Name: Ma'anshan Cihu River Basin Improvement Project (P126813) Task Team Meskerem Brhane Leader: Estimated 21-Jan-2013 Estimated 04-Jun-2013 Appraisal Date: Board Date: Managing Unit: EASCS Lending Specific Investment Loan Instrument: Sector(s): General water, sanitation and flood protection sector (100%) Theme(s): City-wide Infrastructure and Service Delivery (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 210.00 Total Bank Financing: 100.00 Public Disclosure Copy Total Cofinancing: Financing Gap: 0.00 Financing Source Amount Borrower 110.00 International Bank for Reconstruction and Development 100.00 Total 210.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The objective of the Project is to improve drainage and flood protection capacity in urban areas of Ma’anshan Municipality. 3. Project Description The proposed project is based on the Municipal Urban Development Master Plan and the Cihu River Basin Ecological Environmental Integrated Rehabilitation Program which identified the types of Page 1 of 9 investment required for the planning period up to 2020. The Basin is divided into three key areas. The Municipal Government is currently implementing river rehabilitation in the middle reaches of Cihu River, and has requested the World Bank to finance works in the lower and upper reaches. The Public Disclosure Copy government is currently financing works in the 6.3 km area of the middle reaches. These works are ongoing and include strengthening of embankments, upgrading the existing storm drainage network where these have been dilapidated and intercepting storm water flowing into tributaries and canals for treatment. The project consists of the following four components. Component 1: Cihu River Rehabilitation and Drainage Improvement (US$ 71.55 million): This component is intended to reduce the risk of urban flooding and restore the 1 in 20 year flood protection, through improved storm water collection and removal along the upper and lower reaches of the Cihu River. Approximately 13 km of the river channel will be rehabilitated. To optimize the design of these systems, computer modeling will be done in order to determine the hydrological routing of the basin. This component includes the following sub-components: (a) Upstream rehabilitation of Cihu River (6.8 km): Works will include slope protection, embankment strengthening, ecological rehabilitation, greening and service roads. (b) Downstream rehabilitation of Cihu River (6.2 km): Works will include dredging, slope protection, embankment strengthening, flood control structures, service roads, ecological rehabilitation, and greening. (c) Rehabilitation of five Storm water pumping stations: The works include upgrading five pumping stations to increase the pumping capacity to 34.1 m3/sec adequate to efficiently discharge peak storm flows. Component 2: Rehabilitation of Tributaries and Drainage Canals (US$ 44.79 million). This component is intended restore the natural storm drainage function of nearly 34 km of tributaries and canals feeding into the Cihu River by rehabilitating embankments, dredging and removing blockages. Public Disclosure Copy It will be designed to ensure that tributaries and canals can handle storm events of one in 10 years. This component includes the following subcomponents. This component includes the following subcomponents (a) Tributary and drainage canal rehabilitation in urban areas located in Huashan district. (b) Tributary and drainage canal rehabilitation in Hitech Zone focusing on the Jiandan River and Lijianwan River (c) Upgrading of Hubo and Yaochang ponds for use as storm retention basins. Component 3: Environmental Management and Monitoring (US$ 1.44 million). The aquatic health of the Cihu watershed and the ability to restore hydrologic conditions that will accommodate storm flows and other drainage are constrained by water quality impairment related to contamination from domestic, industrial and mining facilities. This component will support the MMG by developing useful tools for monitoring water quality within the Cihu River watershed and for preventing / mitigating impacts from mine land use that contribute to soil erosion and siltation. The data from this program will also be useful in addressing one or more environmental safeguards. Component 3 includes two distinct activities: (a) Design and Implementation of a Water Quality Monitoring Program - design and implement a watershed scale water quality monitoring program for evaluating water quality improvement Page 2 of 9 expected from implementation of components 1 and 2 and other ongoing restoration activities being conducted by the City of Ma’anshan. Data from the monitoring program will enhance decision making related to water resource management. A key use of data from this program will be to Public Disclosure Copy monitor and demonstrate improvement in water quality resulting from newly installed wastewater collection networks. This is directly related to a key sustainability covenant. In addition, technical and scientific capacity will be enhanced at the Ma’anshan EPB and WRB. The monitoring program will include monitoring water quality at selected locations in the Cihu River, tributaries, canals, and shallow groundwater. This sub-component also includes the selection, training and use of a water quality evaluation model, and procurement of automatic and manual monitoring equipment and applicable software; and (b) Development of an Environmental Protection Reference Document: Develop and publish an environmental protection reference document that will provide useful information on: prevention and mitigation of future contamination of water from mining activities and ecological/ land restoration of mined lands. Appropriate topics to be included in the Reference document include: (i) types of mineral resources that are mined in China and mining methods, (ii) applicable laws and regulations, (iii) environmental and ecological impacts associated with mining, (iv) management and mitigation measures for minimizing environmental impact and (v) long-term environmental monitoring. The document will be widely disseminated among key stakeholders. Training on environmental characterization and remediation of mine sites will also be provided. The USEPA will be contacted to inquire if this training can be provided. The training may be provided by a private vendor. Component 4: Capacity Building and Project Implementation Support (US$ 1.6 million). The component will support: (i) project management, design reviews, and monitoring and evaluation; (ii) incremental operating costs; (iii) external safeguards monitoring; (iv) training and study tours and (v) equipment and vehicles. An Operations and Maintenance plan for the assets developed under the project will also be prepared. 4. Project location and salient physical characteristics relevant to the safeguard Public Disclosure Copy analysis (if known) The project is located in Ma’anshan Municipality, one of China’s top 20 fastest growing cities, located in the Yangtze Delta in Anhui Province in Eastern China and comprising three urban districts and three rural counties. It has a population of 2.3 million, 68% of which is urbanized, and a per capita GDP of US$ 9,300. The city was established in 1956, as home to Ma’anshan Iron and Steel Company (Ma Steel), but is now diversifying its economy to automotive, textile, chemical and hi- tech industries. Considered the gateway to Anhui province, it has a good transport network - expressways, rails, an impending high-speed train, and a deep water port -- that has supported its current economic growth. The city has developed along the 26 km long Cihu River, a river discharging to the Yangtze River. The Cihu River has a 126.64 km2 catchment area and a maximum flow in wet season of about 80-100 m3/second. The Cihu River Basin broadly includes three functional areas of the city: the lower reaches (6.8 km) near the Yangtze River containing the older heavy, especially steel, industries; the middle reaches (6.3 km) in the newer urban areas; and the upper reaches (6.2 km) that are in the rural and mining areas. Water pollution, soil erosion and siltation are contributing to the environmental degradation of the Cihu River Basin, impairing its function as an important means for urban flood discharge and source of water supply for agriculture and industry. The rehabilitation of the middle stretch of Cihu river (about 6 km) is under way funded by the government. Bank Page 3 of 9 financing will be for the rehabilitation of the channels and tributaries of Cihu river (about 34 km in total) scattered across the Cihu River Basin. 5. Environmental and Social Safeguards Specialists Public Disclosure Copy Chongwu Sun (EASCS) Zhefu Liu (EASCS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Through implementation of the proposed BP 4.01 activities under Components 1 and 2, environmental improvement of the project areas is expected to be achieved, thus bringing environmental benefits overall. However, the project includes multiple types of construction activities in built up urban areas that will merit careful environmental planning and implementation. The Environmental Protection Reference Document that is being prepared under Component 3.2 will incorporate the Bank’s safeguards requirements. General Environmental Issues: There may potentially be some short term adverse environmental impacts during project construction stage of the project. These potential impacts are anticipated to be of limited extent and duration, and readily managed with accepted measures of good engineering codes of practice Public Disclosure Copy (ECOP). The project requires some sediment dredging, impacts of which can be well controlled by good site management, sound transportation requirements, adequate disposal and usage of dredged sediments and standard measures or ECOP. Natural Habitats OP/BP 4.04 No The project is mainly located in the urban built up area. There are no natural habitats found in the proposed project areas. Forests OP/BP 4.36 No The project will not involve any forestry activity. Pest Management OP 4.09 No The project will not involve any pesticides. Physical Cultural Resources OP/ No Based on information provided, there are no BP 4.11 physical cultural relics found in project areas. Indigenous Peoples OP/BP 4.10 No No minority communities are found in the proposed project area and therefore, OP 4.10 will not be triggered. The citizens in the project area are from the Han population which constitute the Page 4 of 9 majority of the Chinese population and as such are not part of the 56 ethnic minorities that have officially been recognized by the government. Public Disclosure Copy Given the criteria of the Bank’s IP definition, no indigenous people are present in the project area. Involuntary Resettlement OP/BP Yes There are collective land to be required by the 4.12 project. Safety of Dams OP/BP 4.37 No The project will not finance construction or rehabilitation of any dams as defined under this policy. No action is required under this policy. Projects on International No The project will not involve any international Waterways OP/BP 7.50 waterways. Projects in Disputed Areas OP/BP No The project will not involve any disputed areas. 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts: Environmental Assessment The Bank policy OP 4.01 Environmental Assessment is triggered and the project has been classified as Category B. An Environmental Impact Assessment (EIA) was carried out for the proposed project in accordance with China’s national policy and regulations. Based on the EIAs, an environmental management plan (EMP) was prepared to summarize the key environmental impacts, to determine the mitigation measures and environmental monitoring program and necessary institutional arrangement as well as capacity building development. The documents Public Disclosure Copy have been prepared on the basis of Chinese legal and policy framework for environmental protection, master plans and environmental plans as well as applicable Bank safeguard policies and Bank group’s Environment, Health and Safety Guidelines. Through preparation of safeguard documentation, there was no any potential large scale, significant and/or irreversible environmental impacts to be found. From proposed components, the following benefits are expected: improvement in the Cihu River’s water environment and flood control management, and improved wastewater collection and drainage systems in Ma’anshan Municipality. Disposal of the dredged sediments was identified as a key environmental issue. Total amount estimated dredged sediments from Cihu River and its tributaries is about 170,000 m3. Since the disposal of the sediments itself will cause environmental impacts, it will require careful consideration, design and mitigation as well as adequate management. The impacts include the disturbance to communities in proximity of the sediment stockpiling sites, impact of supernatant on the river, soil erosion of the sediment stockpile, impact on communities along the transportation route. Furthermore, there are some common environmental impacts during construction of other proposed activities, e.g., dust, noise, traffic interruption etc. Water quality and sediments test was conducted as part of the EA process. The samples from three sites were collected and tested according to related national standards and protocols. The data of the test were Page 5 of 9 within applicable standards and no hazardous materials were found. In the PCN stage ISDS, safeguard policies of OP4.11 Physical Cultural Resources were indicated Public Disclosure Copy as TBD. No significant cultural relics were found in the proposed project areas. Therefore, it is confirmed that OP 4.11will not be triggered. In case any relics are found during construction, "Chance-Find" procedure and relevant clauses described in the EMP (in the Generic Environmental Codes of Practice) should be included in the contracts. Social safeguards The Bank Policy OP 4.12 Involuntary Resettlement is triggered. The project has significant social benefits, as it supports Cihu river embankment, flood control and better living environment for the citizens. The public consultation and participation process undertaken during preparation enables the project to combine the public concerns into the project preparation to minimize the project's negative impacts and mitigate the negative impacts on land acquisition. The project will affect 34 agricultural production teams in 10 administrative villages in 3 Districts, 1 township and 1 residential committee in Ma'anshan city. The project will require the permanent acquisition of 119.2 hectares of land, including 83.6 hectares of collective land and 35.6 hectares of state owned lands. The land acquisition will affect 552 households equivalent to a total population of 1714. There are no structures to be demolished and no displaced families to be relocated. The RAP prepared by the project entity provides details regarding resettlement policy principles and regulations to be followed, compensation rates and budget, mitigation measures to restore incomes where necessary and institutional and monitoring arrangements. The Project entity under Ma'anshan Municipal Reform and Development Committee will be in charge of the project management and resettlement implementation. A resettlement monitoring institute, independent from the project entity and Ma'anshan Municipal Development and Reform Committee, will be contracted to serve as the independent monitoring agency of the resettlement program. The Public Disclosure Copy project will be monitored and the living standards of the project-affected people will be evaluated over the course of project implementation. The monitoring results will be regularly reported twice a year and, if needed, remedial actions will be devised. As required by the decisions of the PCN safeguards review meeting, the task team also conducted a due diligence review of the locally funded project in the midstream areas of the Cihu river that is linked to the Bank financed project components. The due diligence review confirmed Chinese land law, Anhui provincial land administrative management regulation and local regulations have been complied with. The due diligence review was also disclosed to the project affected households. The living conditions of the people relocated as a result of these investments have been restored to conditions prior to their resettlement in compliance with substantive aspects of Bank involuntary resettlement policies. Since some of the displaced families preferred to be transferred temporarily, the independent monitoring agency will supervise the resettlement activities in compliance with the substantive aspects of Bank social safeguards policies. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The proposed project will improve Cihu River’s water environment and flood control management, and increase/improve wastewater collection and drainage systems in Ma’anshan Municipality. Page 6 of 9 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Environmental: Alternative study was considered during the project feasibility study and EIA Public Disclosure Copy preparation for more technical details, e.g., technical options, and with and without project option analysis. Comprehensive comparisons were analyzed with consideration of technical, economic, as well as environmental and social factors. Social safeguards: The resettlement negative impacts were surveyed and analyzed. That information was discussed by both the institute in charge of the feasibility study and the institute for guiding the RAP. Negative impacts to land acquisition were minimized and housing demolitions were avoided. As a result, there are no structures to be demolished and no displaced families to be relocated. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Environmental: The EA report, prepared by the client and their EA consultants, thoroughly addressed the potential environmental and social impacts envisaged for the project, and developed adequate measures in the EMP to avoid, minimize, mitigate and compensate the potential adverse impacts. The preparation of EA documents followed the relevant national laws/regulations and guidelines, as well as Bank’s safeguards policies and environmental health and safety (EHS) guidelines. A stand-alone EMP has been prepared based on the findings of the EIA report. The EMP summarized the key environmental impacts and detailed the environmental management and supervision organizations and responsibilities, mitigation measures, training plan, monitoring plan, and budget estimates of EMP implementation. It includes sets of Environmental Codes of Practice (ECOPs) for contractors, which will be incorporated into bidding documents and contracts to ensure effective implementation. Public Disclosure Copy Hydraulic method will be used to dredge the lower reach of the Cihu River generating about 77,000 m3 of sediments; while the cofferdam method will be used for dredging the tributaries generating about 95,000 m3 of sediments. The dredged sediments from the lower reaches of the river will be stockpiled in settling tanks in four sites to settle out the Suspended Solids (SS). The separated effluent will be monitored to ensure it meets Chinese and World Bank policy on effluent standards and will be discharged into the Cihu River. All dredged sediments will be transported from the Cihu River by tankers to Xinagshan Sanitary Landfill where they will be further dried and mixed with natural soil for use as cover soil in the landfill. Social safeguards: The PMO contracted an experienced institute to guide the social safeguards documentation and set up resettlement implementation offices in the districts that are part of the project, under the guidance of the municipal PMO. The relevant agencies to be involved in project implementation also participated in the project preparation. Staff from the PMO and agencies are now familiar with Bank requirements, especially social safeguards. The analytical work was undertaken to minimize the project's negative impacts and to develop the mitigation measures in accordance with Bank requirements. Public consultations were undertaken by the consulting institute and the project entity to address the importance of the safeguards policy. The project preparation process was well-done: the Bank requirement on social safeguards were disseminated widely and the RAP incorporated people's concerns; the preparation process Page 7 of 9 also provided on-the-job training to relevant agencies at the district, township, residential committee and village levels. Public Disclosure Copy An experienced monitoring institute, independent of the PMO and the project agencies, will be contracted to monitor the resettlement activities. The monitoring report will be reviewed by the Bank twice a year as requested. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Environmental: Two rounds of public consultations were carried out during the EA process. The technique used for the public consultations included surveys using public opinion questionnaires, focus group discussions, public meetings with key stakeholders and interviews with some project affected persons. The issues raised during these consultations have been incorporated in the EIA and EMP. Furthermore, feedback over the concerns and issues collected in public consultation have been provided to the concerned groups and documented in the EA. The EIA and EMP documents and other project related documents have been disclosed locally through various means (e.g., websites, newspapers, etc.), as required by national and Bank's policies. The EIA and EMP have been disclosed through Bank’s InfoShop on November 22, 2012. Social safeguards: The project stakeholders are the local communities and the people in the city. The people affected by land acquisition believe that the project will give them opportunities to have better living environment and develop their businesses. During the project preparation process and the stages of the project design, public consultations were undertaken and will continue during implementation. The project information was disseminated to the displaced families for refining the project design. The stand-alone RAP was disclosed in the website of the municipal PMO on October 30, 2012 and has been sent to Infoshop on November 22, 2012. B. Disclosure Requirements Public Disclosure Copy Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 02-Nov-2012 Date of submission to InfoShop 22-Nov-2012 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure China 13-Oct-2012 Comments: Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 31-Oct-2012 Date of submission to InfoShop 22-Nov-2012 "In country" Disclosure China 30-Oct-2012 Comments: If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. Page 8 of 9 If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level Public Disclosure Copy OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Public Disclosure Copy Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Meskerem Brhane Approved By Sector Manager: Name: Mark R. Lundell (SM) Date: 08-May-2013 Page 9 of 9