The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 07-May-2017| Report No: ISDSR22078 Regional Vice President: Victoria Kwakwa Country Director: Bert Hofman Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Abhas Kumar Jha Task Team Leader: Ximing Zhang The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P126813 Ma'anshan Cihu River Basin Improvement Project Task Team Leader(s) Country Ximing Zhang China Approval Date Environmental Category 04-Jun-2013 Partial Assessment (B) Managing Unit Is this a Repeater project? GSU08 PROJECT FINANCING DATA (IN USD MILLION) Total Project Cost Total Financing 210,000,000.35 210,000,000.35 Financing Gap 0.00 OLD_FIN_DTL Financing Source Amount Counterpart Funding 110,000,000.35 International Bank for Reconstruction and Development (IBRD) 100,000,000.00 Total 210,000,000.35 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) Current Project Development Objective To improve drainage and flood protection capacity in urban areas of Ma’anshan Municipality . Note to Task Teams: End of system generated content, document is editable from here. 1. PROJECT DESCRIPTION The Project was approved by the World Bank Board on June 4, 2013, and declared effective on September 24, 2013. The project closing date is January 31, 2019. The project comprises of four components: (a) Cihu River Rehabilitation and Drainage Improvement; (b) Rehabilitation of Tributaries and Drainage Canals; (c) Environment Management and Monitoring; and (d) Capacity Building and Project Implementation Support as described below. During implementation, the severe competitive bidding process and over project budgeting of the project led to large amount of Bank loan savings. Up to date, most of the contracts have been issued for originally planned activities, however, the contract value is only about 46% of the total bidding budget. Based on the current contract value, the Project Management Office (PMO) made an estimate, and the Bank task team concurred, that the Bank loan savings would be about US$55 million. After the project mid-term review, Ma’anshan City Government and PMO proposed level-2 project restructuring to utilize the loan savings to extend the project benefits. Three project activities were proposed to be added under the project Component 2: Rehabilitation of Tributaries and Drainage Canals, with a total budget of US$81.27 million for new civil works. These activities include: (i) Comprehensive Treatment of Cihu River Upstream Tributaries, (ii) Comprehensive Treatment of Cihu River Midstream Tributaries, and (iii) Comprehensive Treatment of Cihu River Downstream Tributaries. Each activity includes: a) rehabilitating embankments, dredging, reconstruction of bridges and culverts, service road construction and greening for selected tributaries, and b) drainage network and construction of ancillary road facilities and repair for selected roads. Activity i) also includes rain and sewage pipe network reconstruction and road damage and recovery for the Xiangyang Town central area and its industrial zone. The Project Development Objective remains unchanged and the same to all other project components. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . 3. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) The project is located in Ma’anshan Municipality, one of China’s top 20 fastest growing cities, located in the Yangtze Delta in Anhui Province in Eastern China and comprising three urban districts and three rural counties. It has a population of 2.3 million, 68% of which is urbanized, and a per capita GDP of US$ 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 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. 4. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Name Unit Bernard Baratz GEEDR Chongwu Sun GEN2A Zhefu Liu GSU02 SAFEGUARD_TABLE 5. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation Through implementation of the proposed 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 Environmental Assessment (OP) (BP 4.01) Yes 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. The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) 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 (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. The project is mainly located in the urban built up Natural Habitats (OP) (BP 4.04) No 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. Based on information provided, there are no Physical Cultural Resources (OP) (BP 4.11) No physical cultural relics found in project areas. 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 Indigenous Peoples (OP) (BP 4.10) No majority of the Chinese population and as such are not part of the 56 ethnic minorities that have officially been recognized by the government. Given the criteria of the Bank’s IP definition, no indigenous people are present in the project area. There are collective land to be required by the Involuntary Resettlement (OP) (BP 4.12) Yes project. The project will not finance construction or Safety of Dams (OP) (BP 4.37) No rehabilitation of any dams as defined under this policy. No action is required under this policy. Projects on International Waterways (OP) The project will not involve any international No (BP 7.50) waterways. The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) Projects in Disputed Areas (OP) (BP 7.60) No The project will not involve any disputed areas. KEY_POLICY_TABLE 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 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 within applicable standards and no hazardous materials were found. In the PCN stage ISDS, safeguard policies of OP4.11 Physical Cultural Resources were indicated 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 The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) 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 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. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. Environmental: Alternative study was considered during the project feasibility study and EIA 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. The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) 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. 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 also provided on-the-job training to relevant agencies at the district, township, residential committee and village levels. 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 mechanism 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 The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) 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. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 02-Nov-2012 22-Nov-2012 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure China 13-Oct-2012 Comments RESETTLE_TA BLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 31-Oct-2012 22-Nov-2012 “In country� Disclosure Country Date of Disclosure China 30-Oct-2012 Comments The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Yes Manager review the plan? Is physical displacement/relocation expected? Is economic displacement expected? (loss of assets or access to assets that leads to loss of income sources or other means of livelihoods) PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for NA disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? The World Bank RESTRUCTURING ISDS Ma'anshan Cihu River Basin Improvement Project (P126813) Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal Yes documents? III. APPROVALS Task Team Leader(s) Ximing Zhang Approved By Safeguards Advisor Practice Manager/Manager . Note to Task Teams: End of system generated content