Certification No:No.2834 EIA Certification

Environmental Impact Assessment Report

Poverty Alleviation and Agriculture Development Demonstration in Poor Areas Project (Gansu)

Prepared by: Guangzhou EP Environmental Engineering Ltd

In May, 2014

Table of Content

1 General - 1 -

1.1 Background - 1 -

1.2 Compliance Analysis - 2 -

1.3 Supporting Evidence and Standards for Assessment - 1 -

1.4 Assessment Gategory, Class, Scope and Time - 12 -

1.5 Environment Protection Objectives - 16 -

2 Project Description 18

2.1 Project Objectives and Cost 18

2.2 Project Components and Proposed Implementation Progress 18

2.3 Technical Standards of Project Constructions - 35 -

2.4 Due Diligency Investigation and Related Activities - 38 -

3 The Baseline Situation of Environment Quality and Social Status - 41 -

3.1 Natural Condition of Project Sites - 41 -

3.2 The Social and Economic Status in Project area - 45 -

3.3 Natural Reserves, Cultural Relics and Water Source Protection Areas in Project Areas 47

3.4 Survey and Evaluation on the Status of Environment Quality 48

4 Environment Impact Assessment of Infrastructure Construction 57

5 Impact Analysis on Agriculture Activities 58

5.1 Planting Activity 58

5.2 Environment impact analysis and evaluation on livestock development project 74

5.3 Product processing 86

5.4 Resources carrying capacity analysis 87

5.5 Environmental Assimilative Capacity Analysis 95

6 Alternative scheme analysis 101

6.1 Purposes and principles of comparison analysis 101

6.2 Zero scheme analysis 101

6.3 Comparison of Different Manure Treatments of Small-scale Husbandry 104

6.4 Comparison of Different Manure Treatments of Large Scale Animal Farm 108

6.5 Comparison of Residue from Farmland and Orchard 112

7 Public Consultation and Disclosure 114

7.1 Disclosure 114

7.2 Public Consultation 114

7.3 Results 117

8. Environment Management and Monitoring Plan(EMP) 132

8.1 Institute and Duty for the Environment Management 132

8.2 Mitigation Measures 134

8.3 Environment management training plan 166

8.4 Environment Monitoring Plan 169

9 Conclusions - 174 -

Environment Impact Assessment Report of Poverty Alleviation and Agricultural Demonstration in Poor Areas Project

1  General

1.1 Background

1.1.1  Project Location and It’s Characteristics

Poverty Alleviation and Agriculture Development Demonstration in Poor Areas Project covers 16 counties or districts of Dingxi, Qingyang, Tianshui, Pingliang, Linxia and Wuwei cities including Longxi, Weiyuan, Tongwei, Lintao, An’ding, Huachi, Zhengning, Heshui, Huanxian, Zhang Jiachuan, Zhuanglang, Jinning, Yongjing, Dongxiang and Gulang counties or districts totalling 56 townships and 241 villages with comparative advantages for developing industries with special local features and for income increasing industries in the Liupan Mountains of Gansu.

Gansu Province is an inland province located at the northwest and on the conjection of Losses Plateau, Inner Mongolia Plateau and Qinghai and Tibetan Plateau with the crossing of inland river, the Yellow River and the Yangtze River. It is one of the poorest provinces in China. The total land area of Gansu is 454 thousand km2. Gansu has 14 cities or prefectures governing 86 counties or cities, districts. By the end of 2012, the total population was 26570 thousand including 17830 thousand of rural population making up 67% of total provincial population. Gansu is a province where many different Chinese ethnic groups lived. Population of 54 minority groups making up 9.3% of total provincial population. Among which, Dongxiang, Yugu and Baoan are the minorities which only live in Gansu. In 2011, the GDP was CNY502 billion growing 12.5%. The fiscal revenue was CNY45.04 billion growing 27.4%. The per capita disposable income of urban resident was CNY14988 increasing 13.6%. The per capita net income of rural resident was CNY3909 increasing 14.2%. The province has abundant human resources with 12770 thousand labors including 5 million of surplus workforces (see more details in Annex 1), which is favorable for developing labor-intensive industries. Moreover, the province has large areas of land and diversified ecologies and climates, and is rich in light and heat resources. The temperature ranges differently between day and night. And the province has little environment pollutions. It is favorable for agriculture with local features and processing of green foods. And Gansu is the biggest provice for potato production, the important areas for the production of apple, herbal medicine and plateau summer vegetables, and is one of the biggest pastural provinces.

Besides those, Gansu has poor natural condition, small economic outputs with low per capita GDP and high proportion of poverty. Those are the important factors for constraining the development.

1.1.2  Project Justifications

Chinese government will spend the World Bank loans to support 27 national designated poverty stricken counties of three western provinces namely Guizhou, Sichuan and Gansu to implement poverty alleviation and agriculture development demonstration in poor areas project. And in accordance with relevant environment protection policies of Chinese government and the safeguard policies of the World Bank, the environment assessment report and environment management plan are required.

In order to take full consideration of environment impacts during project implementation and mitigating negative impacts at project design, construction and operation stages, and in accordance with Environment Protection Law of China, Environment Assessment Law of China, Environment Management Regulation of Capital Project, the Circular on Improving Environment Assessment of Project Financed by International Financial Institutions and OP4.01 of the World Bank, Guangzhou EP Environment Engineering Ltd is contracted for the environment assessment of Poverty Alleviation and Agriculture Development Demonstration in Poor Areas Project. Since assignment, the company has made site surveys, collected data and carried out environment assessment in accordance with Project Environment Assessment Outline with the considerations of project characters, World Bank requirement and national procedures and requirement. The environment assessment team has drafted the environment assessment report with the considerations of environment assessment outline and comments of World Bank Pre-appraisal mission by analyzing project activities and implementation plans, making in-depth site surveys, collecting lots of social, economic and environmental data and monitoring environment quality.

1.1.3  Project Management Offices and Executive Agencies

1. Project Management Offices

Project management offices are consisted of the Project Leading Group, Foreign Capital Project Management Center of Gansu Poverty Reduction Office and poverty reduction office in 16 counties of 6 cities.

2. Project executive agencies: cooperative units, farmers and enterprises of 16 counties.

1.2 Compliance Analysis

1.2.1  Compliance with Sector Policies

State Council’s Opinions on Developing Modern Agriculture and Promoting the Building of New Socialist Countryside has pointed out: 1. the development of modern agriculture and promotion of the building of new socialist countryside is the essential of adopting scientific development outlook and the building of harmonious society, and is the important task for accelerating socialist modernization; 2. to enhance constructions of rural infrastructure; 3. to development agriculture with local features. It is to develop the tangible and intangible products and industries in complying with local situations with special attentions on the hoticulture, breeding of special animals and rural tourism; 4. to construct circulation facilities and develop new type of circulation system for agricultural products. It is to construct a batch of markets for whole sale of agricultural products with advanced infrastructures, sound founctions and regulated marketing standards; 5. to develop rural cooperative units. It is to support the development of farmers’ cooperatives in accordance with the Law of Farmers’ Professional Cooperatives. And it is to increase the investment of demonstrative projects which were implemented by farmers’ cooperatives, and to support the activities including marketing, technical training, processing and storage of agricultural products, and selling of production materials of agriculture by adopting preferential tax and financial policies. Besides those, starting from establishing modern agriculture and improving comprehensive agricultural productions, the Decision made by the third plenary of 17th CPC meeting has required to adopt large scale of land consolidation activities and to greatly increase the proportion of stable high-yeild farming lands.

The project is to improve infrastructures, construct the supporting field facilities, and build markets for sale of livestocks and agricultural products. And the project is to develop productions with special local features such as the breeding of cattles, sheeps and pigs, and the production of potatoes, astragas, and codonopsis. Besides those, it is to support farmers’ professional cooperatives, provide technical trainings, and encourage farmers’ participations in project activities to improve the coverage of cooperatives and the level of technical skills.

In accordance with the Catalogue of Guidance on the Adjustment of Industrial Structure (2011 version and 2013 revision), project activities belong to the catalogue of encouraged agriculture and forestry development including constructions of bases for agricultural productions, tractor roads (bridges), rehabilitation of low-yield farm lands and construction of stable and high-yield farm lands; and the catalogue of encouraged water conservancy projects including the development of efficient water distribution and supple system, the adoption of water-saving irrigation technologies, and the constructions of water conservancy facilities (field canals, culverts and pumping stations. Therefore, the project meets the requirement of national sector policies and belongs to the catalogue of encouraged projects.

As the results, project implementation is to fullfill the spirits of the Opinions and the Decision, and meets the relevant government policies.

1.2.2  Compliance with Plannings

The analysis of compliance with the 12th Five-year Plan on Economic and Social Development of China and the Master Plan on Rural Poverty Alleviation of China (2011 to 2020) is the same as those of Sichuan Province.

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Table 1.2-1 Compliance with the 12th Five-year Plan on Economic and Social Development of Gansu Province

Plan / Content of the Plan / Project Activity / Compliance Analysis
The 12th Five-year Plan on Economic and Social Development of Gansu Province / Rural infrastructure / To provide safe drinking water to 8.9 million rural population; the coverage of tap-water in administrative villages reach to 70%; to provide biogas to 700 thousand households; concrete roads in administrative villages reach to 80%; to accelerate the progress on rural power net and small hydropower with electricity coverage at townships and villages reach to 100%; to complete rehabilitation of dangerous houses for 1.2 million households; to provide houses for 15 thousand herdsmen; to complete environment improvement tasks of 100 demonstration townships and 1000 demonstration villages. / The project includes activities such as rural and production roads construction and concretions, which are to improve local environment and promote industrial development. / Complied with the Plan.
Modern agriculture / To protect farmlands and improve grain production; to promote the development of local competitive agriculture such as potato production; to promote the animal breeding such as pigs and dairy cows and the aquatic production; to promote ecological agriculture such as pollution-free product, green product and organic products; to support of farmer’s professional cooperation and local leading agricultural enterprises; and to improve the application of science and technologies in agriculture. / The project will not occupy any farmland for infrastructure construction. The forage and fruit trees will be planted in wasted areas. And as located in Mountain Liu Panshan, the project areas have good foundations for animal breeding and crop plantation. Besides those, the project is to develop green products and promote the development of local competitive industries through training, the establishment of farmer cooperation and the building of local brands etc. / Complied with the Plan.
New socialist countryside / To improve the planning of new countryside; to improve rural environments, promote scientific application of fertilizer, pesticide and plastic mulching film, and control of pollutions from large-scale animal farms. / The project is to strengthen technical training, develop pest management plan, promote appropriate application of fertilizers and pesticides and control pollutions of large-scale animal farms. / Complied with the Plan.
Income of rural people / To execute agriculture related policies; to improve the skills of farmers; to increase rural incomes; and to expand more income-generating sources for farmers. / The project is to promote the development of local industries, increase the incomes of farmers, promote local economic development and reduce poverty through the development of rural infrastructure. / Complied with the Plan.

Table 1.2-2 Compliance with the Master Plan on Rural Poverty Alleviation of Gansu Province (2011 to 2020)

Plan / Content of the Plan / Project Activity / Compliance Analysis
The Master Plan on Rural Poverty Alleviation of Gansu Province (2011 to 2020) / Objectives / As described in the Implementation Regulation, the poverty reduction of Gansu is: to improve the capacity on development in poor areas; to set up the system of local competitive industries; to improve the equal access to basic health; to improve the living conditions to provincial average; the ecological environment is improved greatly. Besides those, the growth of per capita net income of targeted farmers is higher than provincial average by 2% to 3%; to provide compulsory education, basic health services and houses to the targeted people. Moreover, by 2015 and 2020, the water conservation projects, the development of local competitive industries, transportation, drinking water facilities, power infrastructure for both living and production, the rehabilitation of rural dangerous houses, education, medical services, family planning, culture, and social security should be improved by a large margin. / The project is to support the development of farmer’s cooperation, promote the development of local competitive industries, expand local industrial chains and reduce poverty by exploring new mechanisms. / Complied with the Plan.
Targets / Based on the consecutive poverty stricken areas(including Mountain Liu Panshan, Mountain Qinba and Tibet areas), to promote regional development through poverty reduction efforts. / The majority of 16 project counties are the designated counties for poverty reduction in Mountain Liu Panshan. The counties are of characters such as large number poor population, poor infrastructure, and weak capacity in resisting the natural disasters. And its agriculture is of poor technologies and poor management. / Complied with the Plan.
Poverty reduction by sector / To improve infrastructure, develop local competitive industries, carry out poverty reduction through spreading science and technologies, promote education, public health and population management, improve social security system and give priority to energy and eco-environment. / The project is to promote the development of potatoes, herbal medicine, apples and animal breeding, support farmer cooperation on brand registration, transportation, processing and marketing to expand industrial chain and improve pollution control under the conditional grant component. / Complied with the Plan.
International cooperation / In accordance with regional poverty reduction principles, to accelerate the promulgation of regional master plan on poverty reduction; to strengthen cooperation with Tianjian and Xiamen on the twinning assistance program; and to encourage and support non-government organizations and individual person to join in poverty reduction programs through twinning assistance arrangements. / The project financing consists by the World Bank lending and the counterpart funds. Under the cooperation with the World Bank, the project is to be the showcase for more international supports on poverty reduction. Besides the funding inputs, the project is to learn best international practice and explore new mechanism on reducing poverty in China in complying with domestic situations. / Complied with the Plan.

Table 1.2-3 Compliance with the Master Plan on Regional Development and Poverty Alleviation in Mountain Liu Panshan (2011 to 2020)