Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Dioxins Reduction from the Pulp and Paper Industry (P125528) EAST ASIA AND PACIFIC | China | Environment & Natural Resources Global Practice | Global Environment Project | Investment Project Financing | FY 2012 | Seq No: 13 | ARCHIVED on 14-Nov-2018 | ISR33727 | Implementing Agencies: Foreign Economic Cooperation Office of Ministry of Environment Protection, People's Republic of China Key Dates Key Project Dates Bank Approval Date: 29-Mar-2012 Effectiveness Date: 19-Jun-2012 Planned Mid Term Review Date: 11-Dec-2015 Actual Mid-Term Review Date: 01-Dec-2015 Original Closing Date: 30-Jun-2017 Revised Closing Date: 30-Jun-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives are to: (a) demonstrate the result of adoption of best available techniques and best environmental practices (BAT/BEP) in four selected non-wood pulp mills; and (b) support China in developing and adopting a long-term action plan to guide the promotion of a sector-wide BAT/BEP adoption. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name BAT/BEP Investment in Participating Mills and Promotion of BAT/BEP in Selected Mills:(Cost $63.97 M) National Action Plan for Sector-Wide Replication:(Cost $3.23 M) Monitoring and Evaluation:(Cost $1.30 M) Project Management:(Cost $3.66 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The three demonstration mills in Sichuan (Jinfu mill), Henan (Baiyun) and Hunan (Linyuan) provinces have successfully completed BAT/BEP investments and passed final performance verification. The national action plan (NAP) has been substantially completed and will be issued by the China Paper Association (CPA). It is complemented by a number of regulatory instruments, including the "Action Plan for Prevention and Control of Water Pollution" issued by the State Council of China in 2015 and the “General Guidelines on BAT/BEP for Pollution Prevention and Control of 11/14/2018 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Paper Making Industry” issued by MEE in January 2018. A request for restructuring and extension of the project closing date to June 2019 was approved by the World Bank in September 2018, and will allow completion of a number of technical assistance activities to strengthen the long-term sustainability of the project. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Substantial Substantial Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Demonstrate the results of BAT/BEP adoption in four selected non-wood pulp mills IN00642182 ►Reduced UPOPs releases in the four non-wood fiber mills supported by the Project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: 0.023; Sichuan Jinfu: 0.001; Sichuan Jinfu: 0.078; Sichuan Jinfu: 0.001; Hunan Linyuan: 0.034; Hunan Linyuan: 0.002; Hunan Linyuan: 0.113; Hunan Linyuan: 0.002; Henan Baiyun: 0.020; Value Henan Baiyun: 0.015; Henan Baiyun: 0.067; Henan Baiyun: 0.015; Guangxi Pumiao: Guangxi Pumiao: Guangxi Pumiao: 0.126 Guangxi Pumiao: 0.014 0.036. 0.014 Date 31-May-2015 28-Feb-2018 10-Aug-2017 30-Jun-2019 Unit of Measure: g TEQ/a UPOPs released. This measures the toxic equivalent (TEQ) of the UPOPs released by each mill annually. TEQ is the internationally agreed method to report on the concentration of the family of dioxins. In the June 2016 restructuring, the Pumiao Mill was dropped as a participating demo mill for BAT/BEP investment because it had closed down. However, the related monitoring results are Comments: included since they provide valuable information for bagasse-based mills, and because the PDO still refers to four mills. Testing of dioxins (i.e., UPOPs) baselines and final emissions (verification) were conducted by an accredited independent monitoring consultant. The remaining three demonstration mills completed 11/14/2018 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) BAT/BEP investments during 2015-2016, with BAT/BEP verification completed in 2017, and this is therefore the last value that is reported here. End target was set as 70% reduction of the baselines. Dioxins release reduction from the baseline for the four mills was calculated at 98.1%, 98.5%, 77.2% and 88.2%, respectively, by the independent verification consultant (Report on Dioxins monitoring at the four demonstrations mills, Aug 2017). Note: The original bagasse-based Pumiao mill completed BAT/BEP investment before the dioxins monitoring consultancy was contracted; later it stopped operation and dropped out of the project in 2015. Hence its actual baselines and post-BAT/BEP dioxins emissions were not available. Instead, a similar mill, Guangxi Nanhua, was used to provide information on reductions to be expected for bagasse-based mills. Develop a long-term action plan to guide the promotion of sector-wide BAT/BEP adoption IN00642183 ►Adoption of a long-term action plan for the sector's UPOPs reduction (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NAP completed and NAP issued by NAP finalization Value 0.00 approved by Chinese Paper expected soon. committee of experts Association Date 30-Jun-2012 11-Jul-2018 07-Sep-2018 31-Dec-2018 The NAP has been substantially completed, and MEE has now agreed with FECO and CPA that CPA would issue the NAP, expected before the end of calendar year 2018. The NAP consists of the "China Paper Association’s Guiding Opinions on Promoting Dioxin Emissions Reduction in Pulp and Paper Industry", together with a detailed "Compilation Manual". The NAP is supported on the regulatory and Comments: enforcement side by the broader "General Guidelines on BAT/BEP for Pollution Prevention and Control of Paper Making Industry". These guidelines include dioxin specific elements developed under the Project and were issued by MEE in January 2018 (effective 1 March 2018). Overall Comments PDO Intermediate Results Indicators by Components 1. BAT/BEP Investment in Participating Mills and Promotion of BAT/BEP Investment in Selected Mills IN00642184 ►Completion of BAT/BEP investment (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 29-Mar-2012 28-Feb-2018 17-Sep-2018 30-Jun-2019 Three demonstration mills completed BAT/BEP investments during 2015-2016, with BAT/BEP verification completed in 2017. The fourth, Pumiao mill, dropped out the project permanently. The end target is kept at Comments: 4 in order to be consistent with the PDO level result indicator. However, since Pumiao has dropped out of the project, this indicator will be partially achieved (3 out of 4) at project closing. IN00642202 ►Numbers of selected mills to develop BAT/BEP investment plans (Number, Custom) 11/14/2018 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 30-Jun-2016 11-Jul-2018 17-Sep-2018 30-Jun-2019 The end target was modified to 2 as result of the Sep 2018 restructuring, following further appraisal of Comments: activity cost and budget. IN00642204 ►COD discharge per unit of non-wood pulp production from the four mills (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: Sichuan Jinfu: 3.01; Sichuan Jinfu: 3.01; Sichuan Jinfu: 4.83; 10.2.Hunan Linyuan: Hunan Linyuan: 4.09; Hunan Linyuan: 4.09; Hunan Linyuan:4.65; Value 5.28; Henan Baiyun: Henan Baiyun: 1.59; Henan Baiyun: 1.59; Henan Baiyun: 3.33; 4.73; Guangxi Nanning Guangxi Nanning Guangxi Nanning Guangxi Pumiao: NA. Pumiao: 13.5. Pumiao: NA. Pumiao: NA. Date 29-Mar-2012 28-Feb-2018 17-Sep-2018 30-Jun-2019 Kg COD discharged/air dry ton of pulp. The results of COD, NH3-N and Water Consumption were reported by local environmental protection bureau’s regular inspection monitoring. Since the completion of BAT/BEP investments in the Comments: demonstration mills, the regular monitoring results have consistently complied with the national standards (i.e., the end targets). IN00642206 ►NH3-N discharge per unit of non-wood pulp production from the four mills (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: Sichuan Jinfu: Sichuan Jinfu: Sichuan Jinfu: 0.43; 0.72;Hunan Linyuan: 0.35;Hunan Linyuan: 0.35;Hunan Linyuan: Hunan LInyuan:0.41 Value 0.45;Henan Baiyun: 0.29; Henan Baiyun: 0.29; Henan Baiyun: Henan Baiyun:0.15 0.21;Guangxi Nanning 0.12;Guangxi Nanning 0.12;Guangxi Nanning Guangxi Pumiao: NA Pumiao: 0.18; Pumiao: NA. Pumiao: NA. Date 29-Mar-2012 28-Feb-2018 17-Sep-2018 30-Jun-2019 IN00642208 ►Water consumption per unit of non-wood pulp production from the mills (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Sichuan Jinfu: 339.87; Sichuan Jinfu: 39.87; Sichuan Jinfu: 72.0 Sichuan Jinfu: 53.6 Hunan Linyuan: 39.07; Hunan Linyuan: 39.07; Hunan Linyuan:59.0 Hunan Linyuan:52.2 Value Henan Baiyun: 41.6; Henan Baiyun: 41.6; Henan Baiyun:70.0 Henan Baiyun:49.2 Guangxi Pumiao: NA; Guangxi Pumiao: NA; Guangxi Pumiao: 94.4 Guangxi Pumiao: NA Date 29-Mar-2012 28-Feb-2018 17-Sep-2018 30-Jun-2019 Previous value for Sichuan Jinfu was a typo. Comments: 2. National Action Plan for Sector-Wide Replication IN00642185 ►Sectorwide BAT/BEP Guideline developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 Issued Issued Issued Date 30-Jun-2012 28-Feb-2018 28-Feb-2018 30-Jun-2018 Activity completed and end target fully achieved Comments: IN00642203 11/14/2018 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) ►UPOPs monitoring guideline for the pulp and paper sector developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Issued and Issued and Value 0.00 Issued and implemented. implemented. implemented Date 30-Jun-2012 28-Feb-2018 28-Feb-2018 30-Jun-2017 Activities completed and end target fully achieved – Guidelines issued and implemented by four Comments: demonstration province EPBs (four dioxin bioassay labs) IN00642205 ►National workshops on BAT/BEP knowledge dissemination to mills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 30-Jun-2012 28-Feb-2018 28-Feb-2018 30-Jun-2018 Activities completed and end target fully achieved (Total number of participants is 56: 2017, 2 Comments: workshops/36 participants; 2018, 1 more workshop, 20 more participants). IN00642207 ►National training on BAT/BEP for design institutes (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 30-Jun-2012 28-Feb-2018 28-Feb-2018 30-Jun-2017 Activity completed and end target fully achieved - one training workshop delivered for design institutes. Comments: IN00642209 ►Training on rapid method dioxins monitoring for provincial and municipal EPBs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 4.00 4.00 Date 30-Jun-2012 28-Feb-2018 17-Sep-2018 30-Jun-2019 Activities completed and end target fully achieved (Total number of EPBs trained is 16: 2014, 4 EPBs in Comments: one training course; 2016, 2 more courses, 8 more EPBs; 2018, 1 more course, 4 more EPBs). 3. Monitoring and Evaluation IN00642201 ►Increased UPOPs monitoring for pulp and paper mills in the participating provinces. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 16 mills monitored for Value 0.00 15.00 8.00 dioxins emissions Date 30-Jun-2012 28-Feb-2018 17-Sep-2018 30-Jun-2019 This is an annual target of number of mills monitored that year. In 2017 (year 5), four labs were tasked to monitor 3 to 4 mills each. In 2018 there were 4 active labs and each was tasked with monitoring 2 mills only; hence the reduction in number of monitored mills for that year. The target for 2019, and end-target, is 16: there are 8 laboratories supported in 8 provinces, with each lab responsible for monitoring at least 2 Comments: mills.In the first year, Jinfu and Tianyang were monitored; in the third year Baiyun and Linyuan were monitored; in the fourth year, two mills were monitored by each of the demo provinces; in the fifth year, a total of 15 mills were monitored by the four EPBs. 11/14/2018 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P125528 TF-11898 Effective USD 15.00 15.00 0.00 13.70 1.30 91% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125528 TF-11898 Effective 25-May-2012 25-May-2012 19-Jun-2012 30-Jun-2017 30-Jun-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 15-Nov-2014 ,Level 2 Approved on 28-Jun-2016 ,Level 2 Approved on 27-Jun-2018 ,Level 2 Approved on 27-Sep-2018 11/14/2018 Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Dioxins Reduction from the Pulp and Paper Industry (P125528) Related Project(s) There are no related projects. 11/14/2018 Page 7 of 7