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CONSOLIDATED REPORT ON ENVIRONMENT Web viewThe town does not have a sewage treatment plant yet although it has 200 medium and small sized enterprises at the side close to the Penglai

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CONSOLIDATED REPORT ON ENVIRONMENT EVALUATION

China E294 Vol. 2Sustainable Coastal Resources Development Project (Loan 4322)

Project Restructuring

Environmental and Social Impact Assessment

12 March 2004

Foreign Economic Cooperation Center

Ministry of Agriculture

Beijing, Peoples Republic of China

Table of Contents

1. Consolidated Environmental Evaluation Report

2. Tangshan, Hebei Province

a. Tangshang Fishery Supervision and Inspection Center

b. Construction Project of Shoal Shellfish Seedlings Aquaculture [Clam and jellyfish hatchery]

3. Penglai, Yantai, Shandong Province

a. Penglai Coastal Belt Administration Center

b. Penglai Jinglu Fishery Company, Ltd. [High value fish processing]

c. Penglai Beiguo Town Industry Comprehensive Effluent Treatment Project

d. Penglai Chaoshui Chaoshui Town Comprehensive Effluent Treatment Project

4. Xiangshan, Ningbo, Zhejiang Province

a. Xiangshan County Coastal Belt Administration Center

b. Construction Items of establishing Jiushan Islands Ocean Ecologic Conservation Zone

c. Ningbo Chaoxiang Marine Life Product Company. Ltd. [Marine algae processing]

d. Xiangshan Huayi Seafood Co. Ltd. [Seafood processing]

e. Ningbo Feiri MarineIndustrial Co., Ltd. [Seafood Processing]

f. Ningbo Xianglong Aquatic Food Company, Ltd. [Seafood Processing

g. Xiangshan Fishing Trade and Development Co., Ltd. [Seafood wholesale market]

h. Shipu Seafood Industrial Park [Planned waste treatment facility not financed by the project and will serve all components in Shipu area]

5. Fangchenggang, Guangxi Autonomous Region

a. Coastal Fishery Resources and Environmental Monitoring Management Center

b. Jiaye Aquaculture Synthetically Exploiture Ltd. [Marine fish hatchery]

i. Annex 1. Monitoring Report of Environmental Monitoring Station of Fangchenggang for Fish Hatchery

c. Yuanyi Integrated Agricultural Co., Ltd. [Marine fish cage culture]

d. Yuanyi Integrated Agricultural Co., Ltd. [Seafood freezing]

CONSOLIDATED REPORT ON ENVIRONMENT EVALUATION

CHINA COASTAL RESOURCE SUSTAINABLE DEVELOPMENT PROJECT

(NEW SUB-PROJECTS)

The China Coastal Resource Sustainable Development Project (CHA-4322 ) became effective in December, 1998. The project was originally spread in the coastal provinces including Liaoning, Shandong, Jiangsu and Fujian and its Xiamen Municipality. During MTR in 2002, some endusers applied for a cut of their borrowing from the Bank, including U.S.$ 13 million from Fujian, U.S.$ 7.69 million from Jiangsu and US$ 5.84 million to be reallocated in Shandong, totaling at US$ 26.53 million. With consensus among MOF, MOA and the Bank, it has been agreed that the withdrawn borrowing will be reallocated to new borrowers for the same purpose of the project, with emphasis on coastal zone management and aquatic product processing while taking into consideration small sized aquiculture. In accordance with the SAR and legal agreement of the project, the Bank has mobilized specialists to conduct the pre-appraisal and appraisal together with local experts on the newly proposed sub-projects in Zhejiang, Guangxi, Hebei and Shandong in the respect of socio-eco environment, processing, institutional strengthening and finance. Now all the newly proposed sub-projects have finished their financial guarantee, feasibility study and environment evaluation.

A. Briefing on new sub-project area

1. Xiangshan County, Zhejiang Province

Xiangshan County is located at the center of Chinas east coast with a land territory of 1,175 square Kms and a coastal area of 5,335 square Kms. Its total population is 534,000. The county has a coastal line of 800 Kms. and 600 islands. Major produces from the sea include Hexagrams Lagocephalus, hairtails, butterfish and cuttlefish, while aquiculture largely raises shrimps, oysters, kelp, laver and razor clam. The county is one of China important fishery producers. The volcanic rocks of the Jurassic system dominate Land formation in this county. Pines, shrubs, bushes and grasses cover mountains and hills. The county has a mild and humid climate due to the sub-tropical monsoon influence, with 4 distinct seasons and plenty rainfall. Natural calamities include frost and typhoon. Due to over-catching by the increasing number of fishing boats, the coastal fishery resources are diminishing sharply in recent years. The governments have thus encouraged the fishermen to resettle at the coast for aquiculture and aquatic processing since 1998. Since 2000, the governments have allocated earmarked funds to support the resettlement program every year. To supplement the government effort, the Bank has agreed that the county participates the China Costal Resource Sustainable Development Project. It is expected that such participation will create 1,200 job opportunities with 80 % for women.

The proposed sub-projects, namely, the aquatic processing projects and the aquatic wholesale market are to be located in the industrial development zone of Shipu Town. According to the government rule for sewage discharging, each individual aquatic processing plant and wholesale enterprise has built up its independent sewage treatment facility. The development zone is now building a new sewage treatment plant. It is expected to complete the civil construction by July and to be put into operation by the end of October this year. The newly built plant has a daily capacity of 5,000 tons. The total cost of RMB.9.95 million yuan is entirely borne by the local government Shipu Town is a large fishing port. The town is 36 Km.s away from the county seat. It has a population of 70,000, of whom 40,000 are engaged in fishery production. Of its annual gross output value of RMB. 3.3 billion yuan, the fishery accounts for 1.2 billion yuan. It is also important in terms of trading and fishing boat visit by Taiwan. The town has passenger boats linking with Shanghai, Ningbo and Wenzhou. Its development zone has good access to transportation, communication, post and telecommunication, power and water supply, sewage piping network and living quarter communities. The town has an annual averaged rainfall of 1,392 mm, sunshine of 2,025 hours, frost-free period of 296 days, with the relative humidity of 80% and wind velocity of 5.5 m/sec.. Typhoon is the most dangerous calamity. However, the risk of the town by typhoon is effectively relieved due to the windbreak effect of its 600 islands.

1.1 Coastal Zone Management Center

This sub-project is aimed at the coastal ecologic protection. By completion of the project, it is possible to detect the changes of the coastal fishery resources at the East China Sea with the county itself in particular, for the purpose of fishing programming and protection and management of the fishery resources. It is also possible to monitor and evaluate the nearby inshore and offshore ecologic environment quality, for the purpose of marine environment protection. In addition, emergence of fish diseases will also be monitored to help aquatic product quality and safety control. The training program will also help enhancement of the research and management capability of the staff and participation into environment protection by both the local government and people.

The center is to be built at the county seat proper with a total area of 8,907 square m.s, of which the building space accounts for 4,906 m2. The main building is a 6-stored structure. The floor space will be allocated to the marine environment advisory section, aquatic disease control center, aquatic quality testing center, environment protection training center, supervision center for marine environment protection communication network, and laboratories. The center is also to be equipped with a patrol and inspection boat. The project is to be implemented by the Marine and Fishery Bureau of the County Government at the cost of the county government.

1.2 Marine Ecologic Natural Reserve at the Jiushan Island

This sub-project is aimed at protection of the marine ecologic environment. Jiushan Island is formed by 76 reefs with a total area of 7.3 square Km.s, with the main island of 4 square Km.s. Very few people is living there. Thanks to the warm current from Taiwan and the coastal water systems, the marine area around the island has abundant feeding organisms. Thus it becomes a favorable ground for many marine living beings. The survey reveals that within the reserve of the island there exist 54 species of fishes, 25 species of shellfishes and 7 species of mollusca. In addition, there also exist a great number of precious species of plants, flowers, tea trees and medicinal herbs and 8 species of birds within the national and provincial protection category. To protect from destruction by human activities, it is of urgent need to establish the proposed reserve. Within the reserve area, it is planned to foster 2 publicity boards, 20 floating posters, 20 warning boards and an observatory platform with fencing. A small dock is to be built for the patrol boat. A management station is also to be built with necessary communication and warning equipment. The project is to be implemented by the Marine and Fishery Bureau of the County Government at the cost of the county government.

1.3 Huayi Aquatic Food Processing Co. Ltd

The company, founded in 1996, has gone through HACCP accreditation and has an AA creditability. Its annual sales in 2002 was RMB. 100 million with an export value of US$ 11 million. The proposed aquatic processing plant is to be built in the industrial development zone set by the county government at the side of the county seat proper. The project covers a total ar