Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 07/06/2007 Report No.: AC2994 1. Basic Project Data Country: China Project ID: P096556 Project Name: Eco-Farming Project Task Team Leader: Sari K. Soderstrom Estimated Appraisal Date: June 11, 2007 Estimated Board Date: November 29, 2007 Managing Unit: EASRE Lending Instrument: Specific Investment Loan Sector: General agriculture, fishing and forestry sector (30%);Renewable energy (30%);Crops (15%);Animal production (15%);Agricultural extension and research (10%) Theme: Climate change (P);Land administration and management (P);Rural services and infrastructure (P);Other environment and natural resources management (S) IBRD Amount (US$m.): 120.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 120.00 120.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The project development objective is to improve the rural environment and living conditions in project areas while promoting environmentally friendly and economically efficient farm production. In addition, the project aims to reduce greenhouse gas emissions and increase carbon recycling through methane combustion and reduced burning of coal and firewood in the project areas. 3. Project Description The proposed project will apply a comprehensive approach to fully integrating biogas development with farm production systems, including biogas technology solutions and biogas-related on-farm investments; institutional strengthening of biogas service and extension systems at each level; technician and farmer capacity building; and improved M&E systems at local level. The project will be integrated with the government’s National Rural Biogas Program in project provinces and will be largely implemented building on existing institutional systems. Page 2 Component 1: Integrated Eco-Farming Systems. This component, comprising two sub- components (i) Integrated Household Systems; and (ii) Community Development, will assist farmer households to integrate biogas into their production systems to improve the environmental impact, quality, and efficiency of farm production, and improve their living conditions. Component 2: Local Technical Extension and Biogas Service System. This component will strengthen and expand the existing rural energy and agricultural extension services to strengthen the technical support systems for sustainable operation and maintenance of biogas systems; and facilitate stronger integration of the existing rural energy and agriculture support services. The two sub-components: (i) Service System Improvement; and (ii) Training will assist with (a) refurbishing local extension and training facilities; (b) provision of equipment and materials for biogas service systems and agricultural extension; (c) training of county, township, and farmer technicians, and farmers; (d) support to farmer biogas and related associations; and (e) applied research on improving biogas technology and management. Component 3: Project Management, Monitoring and Evaluation. This component will respond to the need for establishment of an efficient and effective project management structure and systems, with well trained and appropriately resourced staff to enable the project to achieve its objectives. Comprising three sub-components: (i) Project Management; (ii) Institutional Capacity Building; and (iii) Monitoring and Evaluation, it will finance project management costs, equipment, training, and monitoring and evaluation. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The proposed project would be implemented in 5 provinces (Anhui, Hunan, Hubei (Enshi Prefecture), Chongqing Municipality, and Guangxi Zhuang Autonomous Region) and would be centrally coordinated by the Ministry of Agriculture. It would directly benefit about 570,000 farmer households. 5. Environmental and Social Safeguards Specialists Mr Zong-Cheng Lin (EASCS) Mr Farzad Dadgari (EASRE) Page 3 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X 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. An EIA covering all five provinces was carried out for the project. No major or irreversible negative environmental impacts of the project were identified. The EIA has fully considered potential project impacts on the natural and social environments and have recommended a plan to ensure that positive environmental impacts are further enhanced and any negative impacts are kept to a minimum. Potential impacts on human health have been assessed and specific measures to minimize the potential transmission of pathogens, water-borne and zoonotic diseases will be taken by all participating farmer households. The EIA identified the need to prepare an “environmental best management guidelines” rather than an EMP, thus no costs are allocated for an EMP implementation within the project. OP4.10 Indigenous Peoples. The presence of ethnic minority groups in the project areas invokes OP4.10. Participation in the project is voluntary and incentives for the participation are great (partial subsidies are provided to project participants). The requirements of OP4.10 are integrated into the overall project design and an Ethnic Minorities Development Plan complying with OP4.10 was prepared. The key challenge of the project in relation to ethnic minorities is to ensure that the households belonging to minority groups have equal opportunities compared to Han Chinese to access project benefits. This is addressed in the project design through: (i) targeting of ethnic minority communities, (ii) a communication and information campaign with messages that are accessible to ethnic minority groups; (iii) project extension staff trained to deliver the communication and information campaign so that ethnic minority groups can participate in the project; and (iv) monitoring indicators that provide data on the targeting and use of project benefits by ethnic minority groups. OP4.12 Involuntary Resettlement. No involuntary relocation and land acquisition are envisaged under the project. Rural access roads and courtyards designed under the project will be mainly reconstructed or improved on their existed old bases within villages, and there is no plan for structure construction in expanding of the existing eco- energy extension service system. However, because most of the project activities will be carried out around villages, some small-scale infrastructure at village level may be Page 4 undertaken to facilitate project achievements. Some of them may require of the acquiring of land (e.g., road widening or construction of sheds or other facilities), but would be sited within the village itself. Use of land allotted to individual households on a lease basis by the collective might have some adverse impact on households unless obtained through voluntary negotiations with the leaseholder. Mitigation measures would be taken to minimize any such potential impacts. A Policy Framework for Resettlement and Land Acquisition has been prepared, which describes all these situations and avoiding/ mitigating principles to be complied with in accordance with the Bank’s safeguard policy OP4.12 and the relevant Chinese laws. In such cases, consultation with farmers would be documented, and impacts would be monitored and reported. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: None identified. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 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. The project will be coordinated by Ministry of Agriculture who has long experience in preparing and implementing Bank financed project. In response to suggestions received from consultation undertaken as part of the SA process, several special features have been incorporated into project design to ensure the ethnic minority communities have an equitable opportunity to participate in, and benefit from, project activities. These include: - Project priority given to ethnic minority communities/households in Guangxi, and western Hubei and Hunan. In selection of project communities and households, ethnic minority nationality is set as one of the priority conditions in the project design. This has been factored into selection of participating counties, resulting in statistical over- representation of minority communities among direct project beneficiaries. - Tailoring sub-project design to fit the ethnic minorities customs. This project assists farmers to achieve integrated farming systems that make more efficient use of water and soil resources, biomass, and other resources. The core model includes livestock, biogas digester, and improved living environment (toilets, kitchen). Current fuel resources of the Zhuang, Yao, Miao and Tujia communities are mostly straw and firewood that are collected by women. Consultation with these communities indicated that ethnic minority farm households welcome the biogas schemes and energy-saving stoves, especially in combination with their traditional wood-stoves for house heating and social gatherings. Meanwhile, they also use the biogas residues (organic fertilizer) as input for agricultural production. - Targeting sub-project activities to the needs of ethnic minority communities. Normally the project design is based on the model of “biogas scheme with three-components- improvement” (kitchen, toilet and pig -hed), called “one plus three improvements). Ethnic minority communities living in mountainous areas specifically need water supply and access roads as well, besides sanitary toilets and pig-sheds associated with the biogas Page 5 schemes. In response to these requests, some sub-projects have adjusted their component design adding limited village infrastructure rehabilitation or orchard construction. - Training for the e thnic minorities’ biogas technicians/workers in particular and for their communities in general. There are regular official trainings provided for rural biogas technicians who gain certificates for working locally. This technical training has also been especially designed for ethnic minority community members in the manner and language acceptable to them. These trained rural biogas technicians from ethnic communities have a particular responsibility to train and guide their community members. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. More than 570,000 farm households in Guangxi, Chongqing, Hunan, Hubei and Anhui Provinces will directly benefit from improving their living conditions, reducing incidences of diseases and intensity of labor (especially for women), and increasing agricultural productivity and economic incomes. Based on socio-economic surveys and stakeholder analysis in project areas of all five project provinces, a social assessment (SA) assessed the project’s potential social impacts and set forth measures to maximize the project benefits and avoid/minimize its adverse impact. In view of the project locations in ethnic minority areas, in Guangxi and the western parts of Hunan and Hubei, the SA highlighted a participatory approach to project management and implementation which is reflected in an Ethnic Minorities Development Plan. The SA guided the overall project design to incorporate free, prior and informed consultation and participation of ethnic minority communities, and how to mitigate potential social risks to marginalize any ethnic minority or other vulnerable groups including women and poor households. The SA confirmed that the project design includes no activity that would lead to resettlement or significant land acquisition. In the event that any land acquisition should take place, a Policy Framework for Resettlement and Land Acquisition was prepared consistent with the Bank’s Operational Policy (OP) 4.12. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 12/11/2006 Date of "in-country" disclosure 02/07/2007 Date of submission to InfoShop 02/15/2007 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? Date of receipt by the Bank 03/19/2007 Date of "in-country" disclosure 04/09/2007 Date of submission to InfoShop 03/23/2007 Page 6 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank 04/23/2007 Date of "in-country" disclosure 04/25/2007 Date of submission to InfoShop 04/25/2007 * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. 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 Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? N/A OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? Yes If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? Yes If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Sector Manager? N/A OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? Yes The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes 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 and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Page 7 Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Sari K. Soderstrom 06/29/2007 Environmental Specialist: Mr Farzad Dadgari 06/29/2007 Social Development Specialist Mr Zong-Cheng Lin 06/29/2007 Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Ms Idah Z. Pswarayi-Riddihough 07/06/2007 Comments: SM approval provided by Ms. Idah Pswarayi-Riddihough, Acting EASRE Sector Manager, July 5-6, 2007.