INTEGRATED SAFEGUARDS DATA SHEET IMPLEMENTATION STAGE . Report No.: 135491 . Date ISDS Prepared/Updated: 18-Dec-2018 I. BASIC INFORMATION 1. Basic Project Data Country: China Project ID: P153115 Project Name: Hunan Integrated Management of Agricultural Land Pollution Project (P153115) Task Team Leader(s): Wendao Cao Board Approval Date: 22-Aug-2017 Managing Unit: GEN2A Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Project Financing Data (in USD Million) Total Bank Total Project Cost: 111.94 100.00 Financing: Financing Gap: 0.00 Financing Source Amount Borrower 11.94 International Bank for Reconstruction and Development 100.00 Total 111.94 Environmental Category: A - Full Assessment Is this a Repeater project? No Is this a Transferred No project? . . 2. Project Development Objective(s) The project development objective is to demonstrate a risk-based integrated approach to managing heavy metal pollution in agricultural lands for safety of agricultural production areas in selected counties in Hunan. 3. Project Description Component 1: Demonstration of Risk-based Agricultural Land Pollution Management. This component aims to demonstrate the risk-based approach to reducing heavy metal levels, notably Cd, in crops and soil at demonstration areas. It will finance implementation of site-specific demonstration plans (to be approved by local agricultural bureaus) at the selected farmlands of about 8,000 ha in participating counties. A menu of technical measures have been proposed (see annex 2) including (a) heavy metal pollution source control measures (mainly field infrastructure investments for clean and sufficient water supply and removal of polluted rice straw1), (b) agronomic measures to immobilize heave metals in soil (reducing crop uptake), (c) planting structure adjustment, (d) soil remediation to reduce total metals in soil, (e) integrated pest management, (f) control of rice exceeding food safety standards if any at the demonstration areas, and (g) measures to protect no risk/clean farmlands. Site- specific technical measures will be determined by site characteristics (through detailed environmental monitoring) and risk assessment before demonstrations. Environmental monitoring will also be conducted during and by completion of demonstrations, to verify demonstration effectiveness. It is expected that by the end of the demonstrations (which will be evaluated annually and adjusted if needed), crops at the demonstration areas will be safe. Furthermore, the demonstrated technical measures should be maintained after the project life to sustain the project outcomes. This component will also finance innovative supervision (see details in annex 2) of implementation of these technical measures, especially timely collection of evidence (photos, audios, and videos) to prove their actual implementation and accuracy. Crops exceeding food standards during demonstrations, if any, will be safely collected or treated as an integral part of the project. The demonstration plans will include a clear mechanism to prevent and verify that agricultural products, e.g. rice with heavy metal exceeding food safety standards, at the project demonstration areas, should not go to the market. The demonstration plans for soil remediation and planting structure adjustment will also include detailed safe handling, treatment and disposal measures for the plants that are highly enriched with Cd and/or other heavy metals and a suitable level of compensation to farmers for any changes which would affect their livelihood or restricted access to lands. The relevant farmers will be informed of effectiveness of the demonstrations in every harvest season. Component 2: Strengthening Agricultural Environmental Monitoring and Management. This component aims to improve AEM and management capacity to orderly, precisely, and sustainably manage agricultural land pollution in Hunan. The activities under this component include the following subcomponents: (a) Establishment of an AEM database for early warning. This subcomponent will finance development and establishment of an AEM database for early warning; AEM and existing data collection from other government agencies for all farmlands; data analysis; and procurement of sampling inspection vehicles, terminal computers, testing equipment for participating counties. This subcomponent will also support upgrade of the Monitoring Center of the Agricultural Bureau in Hengyang County. These will contribute to ascertaining areas and distribution of agricultural land pollution and its affects to agricultural product quality, establishing soil environmental big data, implementing agricultural land classification management which are required by the Soil Ten Provisions (Provision 1 and 3). 1 The mass of heavy metal accumulated in rice straw is estimated as 6–12 times than that in rice, according to the national experts. (b) Development of a risk-based land management tool and crop/soil risk mapping. This subcomponent will support development of a risk-based land management tool and use of the tool to map all farmlands at the participating county and provincial levels to classify areas with different risk levels, predict suitable crops for different soil types and conditions (for example, pH and organic matter), and propose risk management options, taking into account the types of heavy metal pollution sources. This will contribute to the development of technical guidelines for categorization of soil environmental quality under the Soil Ten Provisions (Provision 3). (c) Local regulations and standards for risk-based integrated agricultural land pollution management. This subcomponent will support development of regulations and issuance of technical standards and guidelines, as well as relevant studies at the provincial and county levels to control heavy metal emission from industrial sources; minimize or cease application of agricultural inputs containing heavy metals (sewage irrigation, agrochemicals, straw, and others); and sustain risk-based pollution management. This is responding to the requirements of the Soil Ten Provisions (Provision 2 and 6 on pollution prevention). (d) Studies on sustainable financing models and eco-compensation mechanisms for agricultural land management. This subcomponent will finance studies to identify sustainable financing models and ecological compensation mechanisms (economic compensation level, modality, targets, and management methods) for long-term agricultural land pollution management and soil health restoration, therefore ensuring sustainable agriculture in Hunan Province. This is in line with the resolute commitments of the Chinese Government under the Soil Ten Provisions for enlarging fiscal investment, improving incentive policies, playing the role of market through public-private partnership models, increasing Government purchase, encouraging enterprises to issue shares, and exploring issuance of bonds to facilitate soil pollution prevention and control (Provision 9). (e) Development of agricultural land management Action Plans. This subcomponent will support development of the Action Plans on risk-based agricultural land pollution management for each participating county and for the province. These Action Plans will guide agricultural land pollution management beyond the project life in line with the Soil Ten Provisions (Provision 9 and 10 on establishing soil environment management system and clearing responsibilities and liabilities as well as strengthening collaboration among agencies). Component 3: Capacity Development and Knowledge Distribution. This component aims to (i) develop management and technical capacity of government officials, environmental monitoring staff, and farmers, as well as heavy metal discharging enterprises for addressing agricultural land pollution, and (ii) distribute knowledge gained from demonstrations for increasing awareness and building ability to make informed choices among alternatives. It includes the following five subcomponents: (a) Training for government officials. Organization and provision of national and international trainings on risk-based land management, AEM, pollution prevention (source control), environmental management system (EMS), policy enforcement, and compliance for the government officials recommended from the provincial and county agricultural, environmental protection and land resource departments, development and reform committees, financial departments, and other agencies as needed. These human capital are expected to foster and sustain project outcomes beyond the project life. (b) Training for environmental monitoring staff. Annual training for environmental monitoring staff from different government agencies will be carried out under the project to continuously improve the environmental monitoring capacity. (c) Training for farmers. Training will be provided for farmers, agriculture technical service providers, and farmer field schools on environmental impacts of poor farming practices, international good practices on soil management, the risk-based land pollution management tool, technical operation principles/guidelines for reducing heavy metals in crops and soil, regulations and standards to prevent agricultural inputs containing heavy metals from entering farmlands, and so on. (d) Technical assistance for heavy metal discharging enterprises. This subcomponent will finance technical assistance and training for selected enterprises discharging heavy metals in key industry sectors such as nonferrous metal mining, crude lead smelting, electrolysis of zinc and lead, stibium smelting, zinc oxide, zinc sulfide, electrolysis of manganese, and nonferrous slag utilization to identify processes contributing to metal emissions and propose emission reduction actions and implementation plans. (e) Knowledge Distribution. This subcomponent will finance knowledge sharing and learning of the demonstration process and results, to maximize the demonstration effect from these sites to as many farmers and government administrators as possible from other non- participating counties or even other provinces. Learning materials and technical guidelines should be collected as needed during demonstrations and compiled after demonstrations for distribution and learning purpose to increase awareness and build ability to make informed choices among alternatives. Component 4: Project Management and Monitoring and Evaluation. This component will support day-to-day project implementation, procurement, financial management (FM); environmental and social safeguards functions carried out by the provincial Project Management Office (PPMO) and the county-level Project Management Units (PMUs); and coordination and collaboration among the local government agencies, nongovernmental agencies, and the farmers’ professional organizations. This component will also finance a project management information system, hiring national technical consultants, training and study tours, monitoring and evaluation (M&E) of the project indicators and outcomes, and the project launch and completion workshops. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The number of participating counties is 15 in total, the first batch includes three Counties (approved by Bank in 2017), the second batch participating counties includes 12 Counties. E. Borrowers Institutional Capacity for Safeguard Policies The Provincial Government of Hunan sets up a Project Steering Committee (PSC) to be chaired by a vice governor and composed of the Department of Finance, Agricultural Commission (AC), and Departments of Environmental Protection, Water Resources, Land Resources, as well as the Provincial Development and Reform Commission. The PSC will coordinate overall project preparation and implementation in the province. Under the PSC, AC will be the implementing agency of the project. It will host a Project Management Office (PMO), which will be expanded from the PMO established under the Bank-financed Eco-farming Project (which was closed in 2014). The safeguard performance of the AC PMO under the previous project was satisfactory, and the PMO and the AC high-level managers expressed a strong commitment to this proposed project. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Three counties have been selected as the pioneer sub-projects; they are Hengyang and Yongxing counties, and Yongding District of Zhangjiajie City. The information on the industrial and agricultural activities and routine environmental quality data were collected to evaluate the overall soil contamination in the three pioneer counties. Yongding District is located deep in the Wuling Mountains. The soil PH values of the 1059 samples measured have an average pH value of 6.0, which means that they show a weak acidity. The irrigation water of the project areas is from upstream reservoirs, the irrigation water quality meets with the national standards, and seven small dams in Yongding District triggered the dam safety policy. The monitoring results of the soil in the farmland showed the Cd contents in project areas exceed the Class 2 standard of the Soil Environmental Quality Standard, while the other heavy metals Pb, As, Cr, and Hg meet with the Class 2 standard of the Soil Environmental Quality Standard. The monitoring results of the bottom mud (sediments) in the irrigation channels of the project areas showed the Cd content in some channels exceed the Class 2 standard of the Soil Environmental Quality Standard, while the other heavy metals Pb, As, Cr, and Hg comply with the Class 2 standard. The source for heavy metals contaminating the agricultural land is mainly the solid waste and wastewater once discharged by mining enterprises. In addition, the natural background of heavy metal content is relatively high given that Yongding is rich in minerals. Recently Yongding is concentrating on the development of tourism and as a result the industrial enterprise involved in heavy metal and mining have been closed down. The legacy issues on the abandoned industrial wastes are being addressed. In 2012 and 2015 a total of 1549 sampling points were established across the county of Hengyang. The Soil PH value of 80 percent of the farmland areas is less than 7, the irrigation water of the project areas is from the Zhengshui River. The irrigation water quality meets with the national standards of Surface Water Environmental Quality Standards. The monitoring results of the soil in the farmland showed the Cd, As and Hg contents in project areas exceed the Class 2 standard of the Soil Environmental Quality Standard, the monitoring results of the bottom mud (sediments) in the irrigation channels of the project areas showed the Cd and Hg contents in some channels exceed the Class 2 standard of the Soil Environmental Quality Standard, The results of analysis indicate that the soil contamination degree (risk) is generally low; however measures need to be taken to curb the trend of soil contamination. The main source for heavy metal pollution is the historic discharge from mining and smelting enterprises which have already been closed down. In 2012 a total of 781 sampling points were established across Yongxing County. The main soil PH value is acidic to low acidic. The heavy metal activity in soils is relatively high. The irrigation water of the project areas is from upstream reservoirs. The irrigation water quality meets with the national standards, and six small dams in Yongxing triggered the dam safety policy. The analysis results show that the risk of soil contamination in the farmland is moderate with Cd and As being the primary and secondary concern respectively. The monitoring results of the bottom mud (sediments) in the irrigation channels of the project areas showed the Cd and Hg contents in some channels exceed the Class 2 standard of the Soil Environmental Quality Standard. The rice quality testing result confirmed that the rice is contaminated by Cd. As a famous silver production county, there are numerous smelting enterprises. The historical discharge of untreated industrial waste and flue gas is considered the fundamental source of heavy metal in the soil. The legacy pollution is being actively treated by the government of Yongxing. For the second batch 12 Counties, the surface water quality monitoring has been conducted for all the irrigation water sources during Jan – Oct 2017, covering key parameters of pH, CODCr, TP, NH4-N, As, Pb, Cd, Cr6+ and Hg. Monitoring data showed that all the water sources meet the Standards for Irrigation Water Quality (GB5084-2005, Class 3) and Environmental Quality Standards for Surface Water (GB3838-2002, Class 3), except minor exceedance of NH4-N and TP at three irrigation channel locations in Linwu and Qiyang counties. Soil quality monitoring has been conducted for all the subproject areas in the 12 project counties during Nov 2016 – Oct 2017, with key parameters of Cd, As, Pb, Hg and Cr. The monitoring results showed that there is a general presence of Cd pollution in all counties. Monitoring of sediments in the irrigation channels in the project areas showed that there is a general presence of Cd pollution, with Cd concentration exceeding the applicable standards (Environmental Quality Standards for Soil, GB15618-1995, Class 2) up to 8 times. Through field visit, stakeholder consultation and data research, it is concluded that farmland pollution in the project areas is mainly from the industrial waste from historical heavy metal and mining industries. Extensive efforts have been made by provincial and local governments over the year to tackle the industrial pollution, and all these historical pollution sources have been shut down. All current industrial sources in the region are clearly identified and are in compliance of environmental requirements control. There is no legacy issues of mines, mine tailing and on-site wastes that would cause new pollution to downstream farmland . 5. Environmental and Social Safeguards Specialists on the Team Meixiang Zhou ( GSU02 ) Yiren Feng ( GEN2A ) Ximing Zhang (GWA02) . 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment Yes The project is designed to improve environmental OP/BP 4.01 management of agricultural land contaminated with heavy metals and other pollutants for safe agricultural production in project counties in Hunan. The Project is assigned Category A project because heavy metal pollution sources upstream or near the project areas could be very harmful to the environment and community health if not well managed; especially if the contaminated rice products are sold on the market, it will cause serious social risks and health risks on the public. During the project preparation stage, the three counties were selected as the pilot for the first year. The remaining counties will be decided during project implementation, and therefore an Environmental and Social Management Framework (ESMF) and three counties’ ESIA (ESMPs) for the first year of implementation, PMP and the EA Executive Summary were prepared. ESIA (ESMP) and EA Executive Summary for remaining 12 participating counties was prepared during project implementation following the ESMF when they are confirmed. A separate Social Assessment was prepared to address the social impacts of the project, and the relevant context was included in the ESIA (ESMP). Natural Habitats OP/BP 4.04 No Since the proposed project activities are located in rural areas with intensive agricultural activities, no sensitive locations are expected, the project activities will not affect the natural habitats, e.g., streams and rivers of the project areas, the policy is not triggered. Forests OP/BP 4.36 No The Project doesn't involve forest resources. This policy is not triggered. Pest Management OP 4.09 Yes The component 1 will also support integrated pest management measures; the policy is therefore triggered. A Pest Management Plan (PMP) was prepared and approved by Bank in 2017 which have covered all the participating counties. Physical Cultural Resources No The EA team conducted a survey and concluded that OP/BP 4.11 there is no PCR within or near the project areas. Chance finds during contaminated land remediation engineering work or soil management engineering work may occur and relevant clauses will be included in all bidding documents and construction contracts. Indigenous Peoples OP/BP No At the project preparation, the full list of project sites 4.10 not decided. The IP policy was originally triggered. An IPPF was prepared as it had not been assessed at that time whether IPs would be present in project areas for the second batch of counties. Now all the project sites have been determined for all the rest 12 counties, apart from the first batch of three counties/district which were selected and approved,. It is confirmed that this IP policy is not triggered base on additional social assessment. The additional social assessment (SA) has been done for the second batch of 12 identified project counties/district. The SA assessed the local social economy in project sites through intensive public consultation with project stakeholders and other investigation and review activities. The SA looked into the presence of ethnic minorities against the Bank IP term. In the first three project counties, only in project villages of Yongding District, the Tujia minority accounts for about 84% of local population and the Bai ethnic minority accounts for about 1% of total local population, The Miao minority accounts for 0.07% with only 13 Miao people. Tujia was recognized as a minority in 1956 by the Chinese government. These ethnic minorities have been well integrated with local Han people, including speaking Mandarin Chinese. They enjoy the same opportunities, rights and interests as Han people do. These ethnic people will not be disadvantaged by the project activities. These three groups of ethnic minorities do not fit the Bank IP term requirements. According to the social assessment of the rest 12 project counties, there is no presence of IP by the Bank definition. The SA collected and analyzed the needs and opinions of potential project beneficiaries and key stakeholders, and identified social risks and impacts such as analysis of local Tujia and Miao people in project counties. The social assessment came to a conclusion that the Tujia and Miao people do not meet the Bank IP definition, and therefore IP policy is not triggered in the project., The social assessment also addressed farmers’ participation and cooperation, and came up with a social action plan to mitigate the risks and promote positive social impacts. Involuntary Resettlement Yes Under component 1, cropping systems in some project OP/BP 4.12 areas are likely to be shifted to alternative non-food crops from traditional food crops, or entirely stopped cropping in highly-contaminated farming areas. Under component 2: there may be civil works in improving irrigation facilities which are likely done within project villages without change to land ownership. This is a common practice in China, the use of land for village level public facilities like village-level irrigation canals and field tracks will be dissolved within the related village with no need for acquiring the land. Land is usually voluntarily provided by villagers through consultation and village internal land redistribution or rebalance. Nevertheless, land acquisition or non-land economic displacement cannot be ruled out by project appraisal under the project as many other project sites are yet to be selected. The Bank's involuntary resettlement policy (OP4.12) is triggered just in case land acquisition emerge during project implementation in some of the project sites. To address any possible involuntary resettlement in the project, the resettlement policy framework has been prepared by the PMO through hiring professional consultants will be applied not only to the first three counties also to the second batch of 12 counties. Other relevant social risks and impacts such as crop restructuring are covered by the ESMF. Safety of Dams OP/BP 4.37 YES Following the site survey, a total of 13 reservoirs were identified to trigger the OP 4.37 Safety of Dams in the three pioneer counties of the project. The dams will provide irrigation water to the project areas, and the failure of these upstream dams could cause extensive damage to or failure of some of the investments under the Project. Among them, there are 7 in Yongding District of Zhangjiajie City and 6 in Yongxing County of Chenzhou City. For the second batch project, totally 27 reservoirs were identified to trigger the OP4.37 in 9 counties (including Hengnan County, Anhua County, Cili County, Jishou City, Lengshuitan District, Linwu County, Qiyang County, Yongshun County and Zhongfang County), the existing dams will provide irrigation water to the project areas. The client hired independent Dam Safety Expert (DSE) based on the terms of references (TOR) and CV of the proposed expert approved by the Bank. The DSE prepared dam safety review report stating that all the dams are operational safe, and providing recommendations to improve the safety operation and maintenance (O&M) of the dams. The local government (Yongxing County and Yongding District) prepared dam safety action plan based on recommendations of the Bank and DSE, the Bank reviewed and concurred the action plan. The dams/reservoirs are in compliance with the requirements of OP4.37. For the second batch project, all the 27 dams related to irrigation water supply for the projects have been assessed in terms of dam safety, based on which detailed dam safety action plans have been developed and included in the ESMP. Projects on International No The project will not involve trans-boundary rivers. Waterways OP/BP 7.50 The policy is not triggered. Projects in Disputed Areas No The policy is not triggered as the project does not OP/BP 7.60 involve any disputed areas. . 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: The project is designed to demonstrate a risk-based integrated approach to managing agricultural land contaminated with heavy metals and other pollutants for safe agricultural production in selected counties in Hunan. This project aims to demonstrate the risk-based approach to managing contaminated farmlands, and thus has significant positive environmental and social benefits. However, the heavy metal pollution sources upstream or near the project areas could be very harmful to the environment and community health if not well managed, especially if the contaminated rice products are sold on the market, it will cause serious social risks and health risks for the public. Therefore, the project is classified as Category A as per OP4.01 Environmental Assessment. During the project preparation stage three counties were selected as pilots for the first year. The remaining counties will be decided during project implementation. An Environmental and Social Management Framework (ESMF) and the three counties’ ESIAs (ESMPs) for the first year implementation were prepared by a certificated EA institute in accordance with domestic and Bank requirements. ESIAs (ESMPs) and EA Executive Summary for the remaining 12 participating counties was prepared during project implementation following the ESMF. The three counties’ ESIAs (ESMPs) and the second batch ESIA (ESMPs) analyze adverse environmental and social impacts of the project, it includes the ECOPs to address the impacts of small scale civil works (air, noise, wastewater and solid wastes), the construction of the irrigation canals involves the dredging of the sediments of the irrigation canals, the dredged sediments that exceeds the Class III of the Soil Environmental Quality Standard will be transported to the sanitary landfills for disposal. The civil works of the project are very small scale. They will have very limited impacts on the air, noise, wastewater, solid waste etc. during construction. The impacts will be temporary, limited and site-specific, and easily avoided or mitigated to an acceptable level. The EISAs (ESMPs) screened out the potential pollution sources upstream or nearby the project areas, to avoid or mitigate the potential impacts on the sediments of upstream rivers and irrigation water from such external pollution sources. The due diligence reviews for the associated possible heavy metal pollution sources were conducted and included in the ESIAs (ESMPs). The comprehensive agronomic control technologies are designed to reduce the absorption of the heavy metals by the crops, the impacts are mainly positive, the project activities include use of lime (CaO) to adjust the PH value of the agricultural soil, use of organic fertilizer (manure), management of irrigation water to reduce the absorption of heavy metal by the crops, use of inactivated materials to reduce the activity of the heavy metals of the agricultural soil, and removal of the straw from the farmland. The project activities may bring secondary pollution (negative impacts) only if the unqualified products (CaO, manure, inactivated materials) were used, or excessive amounts of the products are used. The negative impacts can be easily avoided by following the technical guideline for the adoption of the measures, including control and management of the quality of the products and quantity used. The project can improve the soil in the project area, increase the yield of the agricultural products, improve the infrastructure condition and the ecological environment of the project area, promote social and economic development in the project area and improve the knowledge and skills of the farmers and the comprehensive service level of agriculture. In addition, it will be beneficial for dissemination of agricultural technology and can improve the awareness for the prevention of agricultural heavy metal pollution. The main negative social impacts will be the change of the agricultural plantation structure that may happen for highly contaminated agricultural lands, which may temporarily reduce the income of farmers. The negative social impacts can be mitigated with proper compensation or subsidies. Furthermore, the ESIAs (ESMPs) of Yongxing indicated that the closure or relocation of the polluting industries upstream of the project areas have potential environmental related issues such as proper handling of the solid or liquid wastes, and social related issues such as the possible unemployment of the workers of the industries. The due diligence review for such industries was included in the ESMF and EISAs (ESMPs) for the potential environmental and social impacts and mitigation measures. The ESIAs (ESMPs) include both the ECOPs and the site specific impacts and mitigation measures. Component 1 will also support sustainable soil management practices to restore and maintain soil quality, including chemical management. The policy is therefore triggered. A Pest Management Plan (PMP) acceptable to the Bank has been prepared. Through site surveys a total of 13 reservoirs were identified to trigger the OP 4.37 Safety of Dams in the three pioneer counties of the project. The dams will provide irrigation water to the project areas, and the failure of these upstream dams could cause extensive damage to or failure of some of the investments under the Project. Among them, there are 7 in Yongding District of Zhangjiajie City and 6 in Yongxing County of Chenzhou City. For the second batch project, totally 27 reservoirs were identified to trigger the OP4.37 in 9 counties (including Hengnan County, Anhua County, Cili County, Jishou City, Lengshuitan District, Linwu County, Qiyang County, Yongshun County and Zhongfang County), the existing dams will provide irrigation water to the project areas. For the second batch project, all the 27 dams related to irrigation water supply for the projects have been assessed in terms of dam safety, based on which detailed dam safety action plans have been developed and included in the ESMP. The government, as the owner of these dams, has completed the remedial works on the dams. The dam safety evaluation report prepared by the independent dam safety experts indicates that the remedial works for the reservoir are in compliance with domestic technical specifications and the completed works meet the relevant standards. All the dams are operationally safe. The client has prepared dam safety action plan to improve operation and maintenance of these dams based on recommendations by the Bank and Dam Safety Expert (DSE). During project implementation, the dam specialist of the Bank team will supervise the safety status and operation and maintenance of these dams and the implementation of the dam safety action plan to ensure that the Project complies with the Bank’s Safeguard Policy on Safety of Dams. Social: The Project is expected to have significant positive social impacts on local community and residents using or living near the contaminated sites after their farming land pollution is improved. The project is expected to have limited negative social impacts on local community and residents in terms of affecting people’s non-land economic incomes mainly from changing cropping systems. Project civil works are mainly in small scale on village land with no need to change to land ownership, such as village level irrigation canals and ditches within project villages. There is no need to demolish any ground structures for project civil works. Based on this project design, there is no need to prepare any RAP. To take a cautious approach, the existing resettlement policy framework (IPF) can be applicable to the send batch of 12 counties in case any land acquisition newly emerges during project implementation. There is 408.46 ha of polluted farm land to be changed to other cash crops instead of grains, but farmers will be mostly allowed to change to other agricultural activities without heavy impacts on their livelihoods. Government has a comprehensive subsidy scheme to subsidize farmers in shifting to alternative crops for the management of contaminated agricultural land. This subsidy policy will be implemented in the project as details have been set in the ESMF as social action plan based on the social assessment. In terms of presence of ethnic minority, although there are some ethnic minorities of Tujia and Bai people by the Chinese ethnic criteria in the project area in project sites of Yongding District, Jishou City, Huayuan County, Baojing County, Yongshun County and Cili County, yet these two minorities have long been well integrated with the majority Han people. Both Tujia and Miao ethnic minorities in the project areas don’t have unique cultural characteristics, habits or social customs which are recognized by other peoples. There is little difference in culture, economy, society and politic organizations of them in project areas compared with the majority Han people. They do not fit the definition of the Bank IP term according to a detailed social assessment. Thus the Bank OP/BP4.10: Indigenous People is not triggered for pilot counties. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project will have significant positive impacts in the project area. It will improve the soil quality and increase the yield and quality of crops; improve the infrastructure such as irrigation facilities and the ecological environment; stimulate the socio-economic growth; improve the knowledge and skills of farmers as well as reduce adverse impacts on the health of local residents, so as to help disseminate the advanced agronomic technologies and enhance the awareness of heavy metal pollution. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. During the preparation of the project, the FS and EA team considered different factors to help avoid or minimize adverse impacts, including the area of farmland, rice yield, content of heavy metals in soil, risk of contamination for farmland, Cd content in rice, contamination source and pathway, the current status of soil contamination management, willingness of local government and public, etc. based on the results of the alternative analysis, the project towns, villages and project areas will be finally selected. 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. During the project preparation stage three counties were selected as pilots for the first year. The remaining 12 counties was decided during project implementation. An Environmental and Social Management Framework (ESMF), three counties’ ESIAs (ESMPs) for the first-year implementation, PMP and the EA Executive Summary were prepared for the project. ESIAs (ESMPs) and EA Executive Summary for remaining 12 participating counties were prepared during project implementation following the ESMF. A separate Social Assessment was prepared to address the social impacts of the project, and the relevant context was included in the ESIAs (ESMPs). The ESMF includes the overall project description, an analysis of key environment and social risks of the project, a robust screening process for each area of farmland to be supported under the project, TOR for the preparation of ESIAs (ESMPs) of the participating counties. The ESMF has been prepared, which specifies procedures for the selection of counties and sites, for the environmental and social safeguards documents preparation as per requirement of World Bank safeguards policies, WBG EHS Guidelines, and national laws/regulations. The three counties’ ESIAs (ESMPs) and the second batch 12 counties’ EISA (ESMP) analyze adverse environmental and social impacts of the project, it includes the ECOPs to address the impacts of small scale civil works (air, noise, wastewater and solid wastes), the construction of irrigation canals involves the dredging of sediments in the irrigation canals. Any dredged sediments that exceeds the Class III of the Soil Environmental Quality Standard will be transported to sanitary landfills for disposal. The impacts of the agronomic activities will be addressed by sound management of the lime, inactivated materials, organic fertilizers in terms of the quality and quantity, the health and safety measures for the workers, and collection and disposal of the pesticide packing. The social impacts of the project was addressed by SA with the mitigation measures incorporated into ESIAs (ESMPs), including the subsidy for changing cropping structures in highly contaminated project areas, and sound management plans for any contaminated rice; the due diligence reviews for the associated possible heavy metal pollution sources were conducted and the mitigation measures included in the ESIAs (ESMPs) , including the closure or relocated industries in Yongxing County to ensure the environmental and social risks will be appropriately managed. The ESIAs (ESMPs) include both the ECOPs and the site specific impacts and mitigation measures. All mitigation measures related to contractors will be included in the bidding documents and the corresponding contracts. The ESIAs (ESMPs) includes an Environmental Code of Practice (ECOPs) to address potential negative impacts associated with the activities under Component 1. These ECOPs are prepared based on national norms, practice proven in other Bank financed projects and the practice recommended in EHS (Environmental Health and Safety) Guidelines of World Bank Group. They specify all aspects of environmental management issues during the whole project cycle, including but not limited to: site preparation, erosion control, construction dust management, air pollution control, noise impact control, water pollution control, waste management, public and workers’ health and safety, as well as consultation for environmental aspects. It also includes reporting and supervision arrangements for the implementation phase of the project. Chance finds during contaminated land remediation engineering work or soil management engineering work may occur and relevant clauses will be included in all bidding documents and construction contracts. A detailed environmental monitoring program was prepared and incorporated into the ESIAs (ESMPs), which is consistent with the national requirements as well as in compliance with the Bank requirements and international best practices on agricultural pollution monitoring. It details environmental monitoring for the operational phase, including parameters to be monitored, locations, frequencies, monitoring agency and budget estimates. The environmental monitoring has been integrated and budgeted for under Component 2 of the project. To enhance positive and long-term environmental benefits of the project, mitigation measures to the identified adverse impacts have been integrated into the project design, construction and operational plans. Public consultation on ESMF, and ESIAs (ESMPs) was undertaken with project information disclosed at project villages, communities, and government websites prior to public consultation. The ESMF and ESIAs (ESMPs) incorporated countermeasures to address the concerns of the stakeholders consulted. With implementation of the proposed mitigation measures potential adverse impacts will be avoided, eliminated entirely or mitigated to an acceptable level. A Pest Management Plan (PMP) was prepared describing a range of pest and disease control and management methods, pesticide management organizations and their respective responsibilities in the project areas, emphasizing integrated pest management (IPM) approaches, and the scope of the recommended application under various conditions. The PMP also provides a list of fertilizers, pesticides and herbicides that may be required under the project in compliance with World Health Organization's recommended categories. The PMP includes detailed provisions for training project stakeholders and a monitoring program. Implementation of the training and monitoring programs was budgeted in the project cost. The government, as the owner of these dams, has completed the remedial works of the dams. The dam safety evaluation report prepared by the independent dam safety experts indicates that the remedial works for the reservoir are in compliance with the domestic technical specifications and the completed works meet the relevant standards. During project implementation the dam specialist of the Bank team will supervise the safety status and operation and maintenance of these dams to ensure that the Project complies with the Bank’s Safeguard Policy on Safety of Dams. On social aspects, the social management framework as part of the ESMF has been prepared, including RPF, also an IPPF. The ESMF also apply to the second batch of 12 counties. It has set out the principles, rules, guidelines and procedures to assess the social risks and impacts as per the World Bank safeguards policies and national laws/regulations. Subsidy standards for farmers in shifting crops and employee resettlement principles and procedure have also been laid out in the ESMF. The PMOs are required to report and monitor potential social risks, such as issues emerging from involuntary resettlement, ethnic minority development, worker redundancy from enterprise relocation or closure, short-term income reduction from crop shifting as well as other social aspects regarding project affected people and communities during project implementation. Monitoring and evaluation will be done by professionals and reports will be submitted to the Bank team on an agreed regular basis. The Provincial Government of Hunan is setting up a Project Steering Committee (PSC) to be chaired by a vice governor and composed of the Department of Finance, Agricultural Commission (AC), and Departments of Environmental Protection, Water Resources, Land Resources, as well as the Provincial Development and Reform Commission. The PSC will coordinate overall project preparation and implementation in the province. Under the PSC, AC will be the implementing agency of the project. It will host a Project Management Office (PMO), which will be expanded from the PMO established under the Bank-financed Eco-farming Project (which was closed in 2014). The safeguard performance of the AC PMO under the previous project was satisfactory, and the PMO and the AC high-level managers expressed a strong commitment to this proposed project. As necessary, PMO will take actions to implement the ESMF to address social risks and impacts, with the Bank team’s and professional environmental and social consultants’ support, the PMO will also provide training for county PMOs and other project implementing units on safeguards. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders of the contaminated farmland were identified and include farmers and agricultural cooperative associations, polluting enterprises, government organizations and concerned NGOs, as well as experts. During the preparation of ESMF, ESIAs (ESMPs), PMP, SA, RPF and EMDF, public consultations including expert consultations, questionnaires, meetings and interviews, have been conducted with the different stakeholders of the proposed project. This included persons of different gender, socioeconomic and educational backgrounds, groups, and occupations. The first round of consultation for the TOR of this ESMF was conducted in Sept. 2015 and the representative of the 16 candidate counties (one county dropped out) and the relevant experts took part; the second round of consultation for the draft ESMF was in July through Aug 2016 with representatives and experts of the 16 counties. The discussion during the public meetings was focused on the disposal of rice high in Cd content, monitoring plans, approaches to prevent secondary pollution, disposal of sediment from irrigation ditches, possibility of shifting the cropping systems and associated compensation standards. These concerns and suggestions have been recorded in the ESMF and considered in the development of the mitigation measures. For the ESIAs (ESMPs) of the three Counties, in accordance with the requirements of the China’s EA Law and the World Bank, two rounds of public consultation were conducted by the EIA team. The first round focused on environmental screening to define public concerns, to assist identification of key environmental issues and to draw public response and comments on the initially developed mitigation measures for the potential adverse impacts identified before EA TOR finalization. The second round was designed to ensure public awareness of the EA effort and final project definition and mitigation by presenting a draft EA document to the public through information disclosure procedures. During the consultation, the public expressed several concerns on the solid waste, quality of irrigation water, occupational health due to spray of lime, the actual effect of the project, for which due attention has been given in the ESIAs (ESMPs). These concerns have been addressed in public meetings and considered in the EA. Through the consultation it was found that the public strongly support the project as they think it would be a good approach to improving their living conditions. During the consultations, all of the people thought that the impacts of primary concern are effectively mitigated to an acceptable level. The project information was disclosed at project towns/villages, communities, and government websites in Sept. 2015, January 2016, and during July to August 2016 respectively. The majority of those consulted expressed strong support for the project. The ESIAs (ESMPs) incorporated countermeasures to address the concerns of the people consulted. In accordance with the Bank’s information disclosure policy, on Nov 7, 2016 the ESMF which includes RPF, ERPF and EMDPF, and ESIAs (ESMPs), PMP were disclosed in the project areas and on websites of the local government agencies, and made accessible at PMOs. The ESMF, EMPs and PMP were also disclosed by Bank's info shop on Nov 8 2016. For the second batch 12 counties, the public consultation and information disclosure have been conducted following the national laws and regulations, as well as World Bank OP4.01 Environmental Assessment. Two rounds of consultation and information disclosure were carried out during March/April 2017 and June 2017. The stakeholders consulted include farmers in the project areas, agricultural cooperatives, relevant government departments, industrial enterprises (closed or to be relocated), brewery companies receiving rice product and NGOs etc. Consultation is carried out through public meetings, field interview, telephone interview and questionnaire survey in the project affected communities. In total over 700 people were consulted for environmental concerns and 360 people were consulted and 1540 people were surveyed for social concerns in project areas of the 12 counties. The project received a broad support from the stakeholders consulted who expressed strong wishes to see the demonstration of the project to promote agricultural development in the project region. Public concerns on construction management, health, polluted rice control, dredging material management, dam safety issues were introduced and responded in the mitigation measures of the ESIA(ESMP), which will be closely supervised during construction period. In accordance with the Bank’s information disclosure policy, the ESIAs (ESMPs), SA and EA Executive Summary of the second batch 12 counties were disclosed in the project areas and on websites of the local government agencies during August 6 to Sept 11, 2018, and made accessible at PMOs. The ESIAs (ESMPs), SA and EA Executive Summary were also disclosed at the WB website on Sept 28, 2018. . B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Nov 7, 2016; Dec.6, 2018 Date of submission to InfoShop Nov 8, 2016; Dec. 10, 2018 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Nov 7, 2016; Sept 11, 2018 Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 7 Nov. 2016; Dec.6, 2018 Date of submission to InfoShop 8 Nov. 2016; Dec.10, 2018 "In country" Disclosure 7 Nov. 2016; Sept 11, 2018 Pest Management Plan Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank Nov 7, 2016; Dec. 6 Date of submission to InfoShop Nov 8, 2016; Dec. 10 "In country" Disclosure Nov 7, 2016 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. If in-country disclosure of any of the above documents is not expected, please explain why: . C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ X ] No [ ] NA [ ] report? OP 4.09 - Pest Management Does the EA adequately address the pest management Yes [ X ] No [ ] NA [ ] issues? Is a separate PMP required? Yes [ X ] No [ ] NA [ ] If yes, has the PMP been reviewed and approved by a Yes [ X ] No [ ] NA [ ] safeguards specialist or PM? Are PMP requirements included in project design?If yes, does the project team include a Pest Management Specialist? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy Yes [ X No [ ] NA [ ] framework/process framework (as appropriate) been ] prepared? If yes, then did the Regional unit responsible for safeguards Yes [ X No [ ] NA [ ] or Practice Manager review the plan? ] Is physical displacement/relocation expected? Yes [ ] No [ X TBD [ ] ] Is economic displacement expected? (loss of assets or access Yes [ X No [ ] TBD [ ] to assets that leads to loss of income sources or other means ] of livelihoods) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ X ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a Yes [ X ] No [ ] NA [ ] public 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 [ X ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been Yes [ X ] No [ ] NA [ ] included in the project cost? Does the Monitoring and Evaluation system of the project Yes [ X ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ X ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? . . III. APPROVALS . Task Team Leader(s): Name: Wendao Cao Approved By: Safeguards Advisor: Name: Peter Leonard Date: December 21, 2018 Practice Manager/Manager: Name: Nathan M. Belete Date: February 1, 2019