INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA170 Public Disclosure Copy Date ISDS Prepared/Updated: 12-Dec-2011 I. BASIC INFORMATION 1. Basic Project Data Country: China Project ID: P123133 Project Name: China: Gansu Qingyang Urban Infrastructure Improvement Project (P123133) Task Team Leader: Ji You Estimated Appraisal Date: 12-Dec-2011 Estimated Board Date: 24-May-2012 Managing Unit: EASCS Lending Instrument: Specific Investment Loan Sector: General transportation sector (60%), General water, sanitation and flood protection sector (40%) Theme: Other urban development (100%) Financing (In USD Million) Financing Source Amount Borrower 97.20 International Bank for Reconstruction and Development 100.00 Total 197.20 Environmental Category: B - Partial Assessment Is this a Repeater project? No 2. Project Objectives The proposed Project Development Objective (PDO) is to assist Xifeng District, the capital of Qingyang Municipality to improve selected urban infrastructure services including urban roads and urban environmental services. 3. Project Description Component 1: Urban Infrastructure Improvement Public Disclosure Copy (a) Sub-component 1.1: Urban Bypass Road Construction of (i) Construction of bypass roads (southern section of West Ring Road L2.568km/W60m; northern section of East Ring Road, L1.9 km/W60m) with associated pipe works and an urban bridge (L206m/W20mx2); (ii) Construction of three connection roads to by-pass corridors (connection road from West Ring Road to Provincial Highway 202, L1.007km/W37.5m; section of Anding Xi Road linking to West Ring Road, L0.7km/W24m; section of Guxiang Dong Road linking to East Ring Road, L0.54km/W40m) with associated pipe works. (b) Sub-component 1.2: Integrated Road Corridor Improvements of (i) three selected main corridors (Nan Bei Street, Anding Dong Xi Road, West Ring Road), civil works including road pavement, traffic channelization, lighting and greening, along with drainage and sewage system improvements; (ii) Rehabilitation of selected backstreets and small lanes for slow traffic (tentatively identified three backstreets of Nanyuan Lane, Tianhe Lane, Xifeng Lane); (iii) Parking Action Plan; (iv) Public Transport Action Plan; (v) Traffic Safety, Education and Enforcement Action Plan (c) Sub-component 1.3: Drainage and Sewage Pipes, including: (i) constructing drainage and sewer mains for the middle section of West Ring Road (L3.614km / W60m); (ii) constructing drainage and sewer mains for a section of Anding East Road (L0.577km / W24m); (iii) constructing drainage and sewer mains for a section of Anding West Road (L0.511km / 24m); (iv) rehabilitation of sewage collection pipes in Xifeng’s built-up area (20 roads, total length of 22.9 km); (v) associated civil works of road pavement improvement, street lighting and greening along these roads; (vi) GIS-based assets management of drainage/wastewater pipe networks. (d) Sub-component 1.4: Wastewater Treatment Plant construction of (i) a new WWTP in Xifeng’s eastern area (capacity of 20,000 t/d); (ii) a wastewater pumping station in Xifeng’s northern area (capacity of 11,500 t/d); (iii) associated wastewater trunks and collectors. Component 2: Institutional Capacity Building (e) This component will include four sub-components: (i) water resource management study; (ii) O&M improvement of urban infrastructure services in the key sectors of drainage/wastewater, urban road/transport; (iii) capacity building and training for local government agencies; (iv) project implementation TAs. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be located in Xifeng District, Qingyang Municipality, which is in the east of Gansu province bordering Shaanxi Province in the east and north, and Ningxia Hui Autonomous Region in the west. Xifeng District is the only urban district of the Qingyang Municipality which was developed over last two decades as the center of local governmental agencies, commerce and industry, public services and residential housing. The key industry inside the Xifeng District includes food processing and petrochemical processing. There are no national level significance physical culture properties inside the district. Xifeng is situated on the Dongzhi Plateau with elevation from 1200-1500m. It is surrounded by ravines and is largely within the Jinhe Basin. There are two major rivers in Xifeng including the Malian, and Pu. The rainfall is mainly concentrated around July to September. Annual precipitation is 459.5mm. Its annual average temperature maintains between 8 C and 10 C. Page 1 of 5 5. Environmental and Social Safeguards Specialists Zhefu Liu (EASCS) Feng Ji (EASCS) 6. Safeguard Policies Triggered Yes No Explanation Public Disclosure Copy Environmental Assessment OP/BP 4.01 ✖ The project is overall positive. Nevertheless some negative impacts have been identified in the EA process. The principal negative impacts and their mitigation measures described in the EA and EMP, are summarized below.(i) Soil Erosion. There would be impacts, ifnot managed well, of the soil erosion caused project activities; (ii) Sludge Disposal. 40 tons of dewatered sludge (moisture@80%) will be generated from a new Chengdong WWTP and an existing Chengnan WWTP; (iii) Noise and Odor from the operation of the wastewater treatment plant and pumping station; (iv) Noise Impact. Traffic on the improved roads will increase noise level to some extent; (v) Construction- related Impacts from construction activities; and (vi) the road construction will cause demolition of a farmer house (400m2) which has been used as a church by the Catholic Patriotic Association of the Xifeng District. Natural Habitats OP/BP 4.04 ✖ The project will not convert, degrade or restore any natural habitats or critical natural habitats. Forests OP/BP 4.36 ✖ The project will not finance activities that would involve significant conversion or degradation of critical forest areas or related critical natural habitats as defined under the policy. Pest Management OP 4.09 ✖ The project will not procure any pesticides nor will any use of pesticides result from the project. Physical Cultural Resources OP/BP 4.11 ✖ During the EA process, 35 graves owned by local farmers will be relocated due to the road construction. Indigenous Peoples OP/BP 4.10 ✖ A field screening and desk review were conducted and TT concluded that there is no indigenous community in the project area. According to the census data information of Xifeng District, there are over 220,000 populations in the Xifeng District and there are eleven Chinese minorities in this District, including Hui, Mongolia, Man, Korea, Zhuang, Miao, Tu, Tujia, Dongxiang, Zhang and Russian minorities. The total Chinese minorities in Xifeng District are 1,859 populations with 442 households. Among those Chinese minorities, Hui minorities contribute 88% of entire Chinese minority population in Xifeng District. The rest of the Chinese minorities are scattered in Xifeng District. There are two villages among those eight affected villages in the project area where Chinese minorities are present in. One village has only one Chinese female Hui minority who was immigrated by marriage with a villager and Public Disclosure Copy another village has Chinese Hui minorities with 29% of village populations. Based on the Bank definition of indigenous peoples, Chinese Hui minority within the project area does not present the criteria of Bank indigenous peoples. It was thus determined that OP 4.10 on Indigenous Peoples is not triggered. Involuntary Resettlement OP/BP 4.12 ✖ The project will affect 8 villages in 5 townships in a peri-urban area. The project will require the permanent acquisition of 781 mu (52 hectares) of land. The breakdown of this land use is 403 mu (27 hectares) of cultivated land, 133 mu (8.9 hectares) of forest land, 110 mu (7.3 hectares) of orchard land, 89 mu (6 hectares) of housing lots and 45 mu (3 hectares) of unused land. The dominant land use is for growing corn and wheat (50 percent of the area), and the rest is mostly forest, land for apple orchards and housing in roughly equal shares. Some temporary land use will be required during project implementation by contractors, mitigation measures will be taken. The municipal resettlement office will supervise the activities. The project will affect 206 families with 892 persons by land acquisition and 143 families with 528 persons by structure demolition in the peri-urban areas. The 528 people to be displaced belong to 143 families, consisting of 113 families in peri-urban areas (average size 3.62 persons) and 30 families in city areas (average size 3.7 persons). Among those displaced peri-urban families, no any family will lose all of their cultivated land. Lastly, 10 shops and a church will be demolished and relocated, affecting 56 employees. The church relocation has been addressed by environmental safeguards. Safety of Dams OP/BP 4.37 ✖ The project will not finance construction or rehabilitation of any dams as defined under this policy. Projects on International Waterways OP/BP ✖ Not applicable. 7.50 Projects in Disputed Areas OP/BP 7.60 ✖ Not applicable. Page 2 of 5 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: OP 4.01. Environmental Assessment. The project is overall positive. Nevertheless some negative impacts have been identified in the EA Public Disclosure Copy process. The principal negative impacts and their mitigation measures described in the EA and EMP, are summarized below.(i) Soil Erosion. There would be impacts, if not managed well, of the soil erosion caused project activities; (ii) Sludge Disposal. 40 tons of dewatered sludge (moisture@80%) will be generated from a new Chengdong WWTP and an existing Chengnan WWTP; (iii) Noise and Odor from the operation of the wastewater treatment plant and pumping station; (iv) Noise Impact. Traffic on the improved roads will increase noise level to some extent; (v) Construction-related Impacts from construction activities; and (vi) the road construction will cause demolition of a farmer house (400m2) which has been used as a church by the Catholic Patriotic Association of the Xifeng District. OP 4.11 Physical Cultural Resources. During the EA process, 35 graves owned by local farmers will be relocated due to the road construction. OP 4.12. Involuntary Resettlement. The project will affect 8 villages in 5 townships in a peri-urban area. The project will require the permanent acquisition of 781 mu (52 hectares) of land. The breakdown of this land use is 403 mu (27 hectares) of cultivated land, 133 mu (8.9 hectares) of forest land, 110 mu (7.3 hectares) of orchard land, 89 mu (6 hectares) of housing lots and 45 mu (3 hectares) of unused land. The dominant land use is for growing corn and wheat (50 percent of the area), and the rest is mostly forest, land for apple orchards and housing in roughly equal shares. Some temporary land use will be required during project implementation by contractors, mitigation measures will be taken. The municipal resettlement office will supervise the activities. The project will affect 206 families with 892 persons by land acquisition and 143 families with 528 persons by structure demolition in the peri-urban areas. The 528 people to be displaced belong to 143 families, consisting of 113 families in peri-urban areas (average size 3.62 persons) and 30 families in city areas (average size 3.7 persons). Among those displaced peri-urban families, no any family will lose all of their cultivated land. Lastly, 10 shops and a church will be demolished and relocated, affecting 56 employees. The church relocation has been addressed by environmental safeguards. OP 4.10. Indigenous People. A field screening and desk review were conducted and TT concluded that there is no indigenous community in the project area. According to the census data information of Xifeng District, there are over 220,000 populations in the Xifeng District and there are eleven Chinese minorities in this District, including Hui, Mongolia, Man, Korea, Zhuang, Miao, Tu, Tujia, Dongxiang, Zhang and Russian minorities. The total Chinese minorities in Xifeng District are 1,859 populations with 442 households. Among those Chinese minorities, Hui minorities contribute 88% of entire Chinese minority population in Xifeng District. The rest of the Chinese minorities are scattered in Xifeng District. There are two villages among those eight affected villages in the project area where Chinese minorities are present in. One village has only one Chinese female Hui minority who was immigrated by marriage with a villager and another village has Chinese Hui minorities with 29% of village populations. Based on the Bank definition of indigenous peoples, Chinese Hui minority within the project area does not present the criteria of Bank indigenous peoples. It was thus determined that OP 4.10 on Indigenous Peoples is not triggered. Linked Projects. The local funded projects linked to the Bank supported project in Xifeng District were identified as the southern session of western ring road, the middle session of eastern ring road and two earth borrower pits. The resettlement work of the above two road sessions and two earth borrower pits were implemented in 2009. For those two road sessions, the affected villages received their entitlement and shared their land compensation after land redistribution among the affected villages as village traditional way. For those two borrower pits that were used by local funded projects and will contribute to the Bank supported project, they used to be hilly dry earth land and owned by the collective Public Disclosure Copy villages. The villagers received RMB 500 over than their losses of crops yearly agreed by both of project entities and the community. The hilly land will be leveled down and return to the villages without any charge after the civil work of the project. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The investments in the urban roads and urban environment services in Xifeng District will alleviate the traffic congestion, protect local water resource, improve public health, and atheistic impact, and are also expected to have a positive impact on local economy development in the area. The project has certain adverse impacts related to the land acquisition and structure demolition. In some cases displaced persons viewed the housing demolition as an opportunity to improve their living conditions significantly. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Technical alternatives were considered for the investment components during the feasibility study and the EA to minimize environmental impacts. The EA and the feasibility study analyzed alternatives for WWTP configuration (two small WWTPs vs one large WWTP), WWTP sites, wastewater treatment technology, sludge treatment technology, road construction, potential environmental and social impacts, and the project costs. The EA also includes the “without project� scenario. The two bypass road designs and the selection of the waste water treatment plant and pump station considered the alternatives to minimize the adverse impacts to the land acquisition and structure demolition. 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 Safeguards. The client has engaged EA consultants-Lanzhou University to prepare the Environmental Assessment (EA) report for all project components in accordance with the Bank’s requirements for OP.4.01 and Chinese EA regulations. The EA and EMP specified the appropriate mitigation measures, environmental monitoring plans, institutional arrangements, training and equipment requirements together with budget estimates for the implementation of the mitigation measures and monitoring plans. The proposed mitigation measures are mainly described below. • Soil Erosion. The EA includes an analysis of water and soil conservation in the project area. The EMP specifies soil conservation measures for the construction activities. To minimize the impacts of Chengdong WWTP effluent discharged to a nearby gully, mitigation measures include: (a) proper selection of discharge point with adequate facility to dissipate the energy of effluent; (b) control of effluent flow velocity along the gully to avoid or minimize soil erosion. Page 3 of 5 • Sludge Disposal. The investment on a sludge dying facility will effectively reduce the volume to 14-16 tons/day by utilizing solar energy. Sludge cake will be sent for disposal to a nearby sanitary landfill which is equipped with lining and leachate collection and treatment facility. Traffic impacts associated with the delivery of sludge for disposal at the sludge drying facility and with the transport of dried sludge for off-site landfill disposal will be minimized by restrictions on the times of day allowed for these activities. • Other Operational Impacts. Noise and odor will be minimized by proper siting and by the provision of buffer zones and landscaping. The odor impact will be minimized by a bio-filter system which is an integral part of the WWTP. Public Disclosure Copy • Noise Impact. The sensitive receptors have been identified. The noise impact, after confirmed once the roads are put into operation, will be reduced to the acceptable level by provision of acoustic barriers and noise insulation facilities. • Construction-related Impacts. Environmental Codes of Practices (ECOP) has been prepared to address these general impacts (e.g. dust, spoil disposal, noise, wastewater, disturbance to local communities) and will be included in bidding documents and civil works contracts. • A new church will be built in a site approximately 2 km away from the existing one. The new site has direct access to the city road networks. An auxiliary building will be installed first at the new site as a temporary place to maintain the religious activities during the construction of the church. Physical Cultural Resources Impacts. Mitigation measures will be implemented in line with the relevant national regulatory and legal framework. New sites for these graves have been selected and agreed. Public consultation with concerned and affected parties on the proposed measures has been conducted, and concerns about the relocation have been incorporated into the EMP. Social safeguards. An experienced social safeguards consultant was contracted to guide and assist Qingyang to prepare the resettlement action plan. The analysis of the alternatives was carried out during the road designs and the site selection of the waste treatment plant and pump station so as to minimize the impacts to the resettlement. Vulnerable groups to be affected by the project were identified and specific resettlement policy will be provided. Land redistribution will be approached to ensure that no any family will lose their farming land even land income only contributed less 20% of their family income. Medical insurance and pension programs will be provided for those affected families. The analysis of family income generation presented in the draft RAP showed that the displaced families will not reduce their family income. Qingyang Municipality has established a Project Leading Group at the municipal level to oversee and coordinate the preparation and implementation of the Project. This Leading Group is chaired by a Vice Mayor with officials from a number of governmental agencies. In addition Qingyang has established a project management office (PMO) with 14 full-time staff, including staff for safeguards management. For project preparation, Qingyang PMO has engaged a French consulting firm with extensive experience in preparing Bank projects to prepare the consolidated feasibility study report. The safeguarded documents such as EA and RAP reports have been prepared by the professional institutions with the required qualification and adequate experiences on Bank projects in China. During project preparation, Qingyang PMO has received necessary trainings on Bank safeguard polices and on-the-job training by working with the external safeguards consultants. Its capacity to handle the safeguards compliance during project preparation is deemed adequate. The PMO’s capacity will be further enhanced during the project implementation stage by engaging the project management and supervision consultants. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Environmental Safeguards. In accordance with Bank Safeguard policies and Chinese regulations, public consultations were conducted from Public Disclosure Copy June to October 2011, including public consultation meetings and questionnaire survey, with project affected persons and other stakeholders. Their opinions and concerns have been taken into account in the EA process and project design. The EA and EMPs disclosed on November 28, 2011 via Xifeng district government website. The EA report will be sent to the Bank InfoShop for disclosure on December 2, 2011. Social Safeguards. Public consultations and participations were conducted from last November, 2010 to this November, 2011 and will continue until the completion of the project. The displaced families are located in peri-urban area and most of the displaced families considered that the resettlement relocation is an opportunity to improve their living and increase their family property value. A specific public consultation was led by the project management office in the early November, 2011, focusing on the housing relocation. Four mitigation measures were provided for the consideration of the displaced families, such as; cash compensation, centralized resettlement sites in three villages, multi-floor relocated apartments and high-building apartments in the center of the city. The RAP will be locally disclosed on December 2, 2011 via Xifeng district government website. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 21-Nov-2011 Date of "in-country" disclosure 28-Nov-2011 Date of submission to InfoShop 07-Dec-2011 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 21-Nov-2011 Date of "in-country" disclosure 01-Dec-2011 Date of submission to InfoShop 12-Dec-2011 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 4 of 5 If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Public Disclosure Copy Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes [ ] No [ ] NA [ ] OP/BP 4.11 - Physical Cultural Resources Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on Yes [ ] No [ ] NA [ ] cultural property? OP/BP 4.12 - Involuntary Resettlement If yes, then did the Regional unit responsible for safeguards or Sector Manager review the Yes [ ] No [ ] NA [ ] plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes [ ] No [ ] NA [ ] Have relevant documents been disclosed in-country in a public place in a form and language Yes [ ] No [ ] NA [ ] that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for Yes [ ] No [ ] NA [ ] the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Yes [ ] No [ ] NA [ ] Does the Monitoring and Evaluation system of the project include the monitoring of safeguard Yes [ ] No [ ] NA [ ] impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same Yes [ ] No [ ] NA [ ] been adequately reflected in the project legal documents? III. APPROVALS Signed and submitted by: Name Date Task Team Leader: Xin Chen 12-Dec-2011 Approved By: Sector Manager: Paul Kriss (SM) 12-Dec-2011 Comments: Public Disclosure Copy Page 5 of 5