PROJECT DEVELOPMENT FACILITY
REQUEST FOR PIPELINE ENTRY AND PDF BLOCK B APPROVAL
FINANCING PLAN (US$)
AGENCY'S PROJECT ID: P090336
GEF ALLOCATION
GEFSEC PROJECT ID: 2750
Project (estimated)
5,000,000
COUNTRY: China
Project Co-financing
136,000,000
PROJECT TITLE: Ningbo Water and
Environment
PDF A*
Related Program: World Bank/Global
PDF B**
350,000
Environment Facility Pollution Reduction
PDF C
Investment Program for the Large Marine
Ecosystems of East Asia.
Total PDF Financing:
350,000
GEF AGENCY: World Bank
PDF Co-financing
OTHER EXECUTING AGENCY(IES):
Local government
185,000
Total PDF Financing
535,000
PDF B DURATION:12 months
GEF FOCAL AREA: International Waters
GEF OPERATIONAL PROGRAM: OP10: Contaminant-based;
GEF STRATEGIC PRIORITIES: IW1 - catalyzing policy reforms and pollution reduction
measures; IW3 - demonstrating, testing, and replicating innovative ways to reduce land-based
pollution; and B4 - generation and dissemination of best practices for addressing current and
emerging biodiversity issues.
ESTIMATED STARTING DATE (PDF-B): May 2005
ESTIMATED WP ENTRY DATE: May 2006
RECORD OF ENDORSEMENT ON BEHALF OF THE GOVERNMENT:
Name: Mr. Wang Bing
Date: 10 March 2005
Ministry of Finance, China
(Endorsement letter attached)
This proposal has been prepared in accordance with GEF policies and procedures.
Steve Gorman
Robin Broadfield
IA/ExA Coordinator
GEF Regional Coordinator
Date: May 5, 2005
Tel: 202 473 4355
Email: rbroadfield@worldbank.org
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PART I - PROJECT CONCEPT
A - SUMMARY
1. STRATEGIC FRAMEWORK
East Asia's rapid economic growth has been accompanied by significant environmental
degradation. Land-based pollution of the region's seas, coasts, estuaries and rivers is one of its
most severe environmental problems and is degrading the region's large marine ecosystems
(LMEs). To help the littoral states address this problem, the GEF and World Bank, in
collaboration with other partners such as the GEF/UNDP/IMO Partnership for Environmental
Management of the Seas of East Asia (PEMSEA), are planning to establish a Pollution
Reduction Program for the Large Marine Ecosystems of East Asia (the Program). The Program
is scheduled to be presented to the GEF Council in late 2005. The objective of the Program is to
scale-up investment in land-based water pollution reduction in the region's coastal areas and
major river basins. The Program comprises an investment component that will co-finance World
Bank pollution reduction investment projects, and a revolving fund(s) component that will
provide reimbursable financial incentives to private pollution reduction investors/managers.
The Ningbo Water and Environment Project (NWEP) described herein is the first World Bank
project proposed for GEF co-financing from the Program's investment component. The NWEP
was approved by the World Bank Board in March 2005. Since the project loan processing
proceeded faster than the GEF processing, the proposed GEF activities will be processed
independently of the loan, but are considered an integral part of the NWEP.
2. PROJECT RATIONALE
The NWEP will be implemented by Ningbo Municipality, which is located 175 km south of
Shanghai, borders Hangzhou Bay, and is China's second-largest port. Investments in water
supply and pollution control in the municipality have lagged far behind its rapid economic
development, so its coastline is severely polluted. Its local governments have now declared
pollution reduction a priority and adopted a progressive, sub-regional and multi-sector approach
to it. The NWEP would implement that approach, and demonstrate cost-effective and innovative
solutions, including a constructed wetland for municipal wastewater treatment and a natural
wetland conservation area for non-point source pollution control, biodiversity protection, and
environmental education. It would also produce multi-focal area benefits and have high
replication potential. The lessons learned from the project would be disseminated throughout the
region through the organization of workshops and dissemination of documents, thereby
enhancing the prospects for replication. For all these reasons, the proposed project is an excellent
candidate for support from the Program.
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3. OBJECTIVES
The project's objectives are to reduce land-based pollution of the neighboring coast and the East
China Sea, promote the replication of innovative low cost wastewater treatment techniques, and
encourage costal conservation.
4. OUTPUTS
a. Wastewater treatment: i) two wastewater treatment plants, one in the north of Cixi City
(100,000 m3/day) and one in the east (50,000 m3/d); ii) each wastewater treatment plant
will a constructed wetland for tertiary treatment (50 ha in total); iii) an associated
collection system of mains and link sewers (230 km of pipe and 58 pump stations); and
iv) natural wetland conservation area (20-40 km2) that will reduce non-point source
pollution, conserve biodiversity, and promote environmental education.
b. Institutional Development: Develop the operational and business capabilities of the
recently established Cixi Municipal Sewerage Company, and develop environmental
conservation and educational programs focused on protecting Hangzhou Bay, including
water pollution control and wetland conservation.
B - COUNTRY OWNERSHIP
1. COUNTRY ELIGIBILITY
China is eligible for GEF assistance under the International Waters Focal Area through the
World Bank.
2. COUNTRY DRIVEN-NESS
Ningbo Municipality has requested the World Bank and the GEF to co-finance the NWEP so
it can learn and apply international best-practice and innovative approaches to wastewater
treatment. China's Ministry of Finance has confirmed that the project is a national priority
for World Bank and GEF assistance. Local communities have been notified of and briefed on
the project through the newspapers, libraries and consultative meetings and have expressed
their support for it.
The project is consistent with China's strategy for reducing municipal water pollution, which
stresses adequate pricing, service expansion and operational efficiency. It is also consistent
with the trans-boundary diagnosis and strategic recommendations of the PEMSEA-facilitated
Sustainable Development Strategy for the Seas of East Asia, which China has endorsed.
C - PROJECT AND POLICY CONFORMITY
1. PROJECT CONFORMITY
Conformity with OP 10:
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The proposed GEF-funded activities under the NWEP, are consistent with the GEF's
Operational Program (OP) 10, the Contaminant-based International Waters OP, in that it will
demonstrate and encourage replication of innovative and best practice options to overcome
the barriers to reducing land-based contamination of an international water body, the East
China Sea. To ensure that the Program is value added, it seeks to finance activities within the
Bank-financed projects that would not occur if not for the additional GEF funding.
Conformity with overall Program criteria:
The Program Brief, for the Pollution Reduction Investment Program for the Large Marine
Ecosystems of East Asia, scheduled for submission to the GEF Council in November 2005,
is still under formulation, but the general criteria for financing have already been defined.
Pollution reduction components of World Bank projects that are most likely to receive GEF
co-financing under the Program typically meet one or more of the following criteria: (i)
demonstrate a new pollution control technology or technique; (ii) "try and test" a pilot where
there is low public awareness, limited experience, and where the client is not be willing to
take on that cost; (iii) are innovative institutional mechanisms or technical solutions to
combat land-based water pollution; and (iv) are easily replicable and/or scalable. The
Program would focus mainly on pollution hot-spots in the coastal areas of China, Indonesia,
Philippines, Vietnam and Cambodia.
The proposed GEF-funded activities under the NWEP clearly meet the criteria listed above.
Development of a constructed wetland for wastewater treatment and conservation of a natural
wetland for non-point source pollution control will demonstrate a relatively new and
innovative pollution control technology for East Asia. Cixi officials have indicated that they
would only test these new ideas if they received incentives from GEF, underscoring the
incrementality of the GEF funding. The technology has a high potential for replication
throughout China and East Asia due to a low capital cost structure and straightforward
operations. As noted in Section 4 (Replicability), a comprehensive replication and
dissemination strategy is planned both under the project and the overall Program.
Conformity with GEF Strategic Priorities:
The project is also consistent with GEF Strategic Priorities (SP) 1 and 3 for the International
Waters Focal Area. With respect to Priority 1, it will facilitate the efforts of a nation that
signed the Putrajaya Declaration of Regional Cooperation for the Sustainable Development
of the Seas of East Asia to mobilize financial resources for implementing policy/institutional
reforms and stress-reducing investments to address a priority trans-boundary water issue
(land-based pollution of a shared water body) that is highlighted in the declaration.
Furthermore, as called for by the SP, these resource mobilization efforts are mainstreamed
into the regular program of a GEF agency, in this case the World Bank, under the framework
of a strategic partnership among nations and the GEF agencies that supports the World
Summit on Sustainable Development's Plan of Implementation.
With respect to Priority 3, the project will demonstrate the feasibility of innovative
institutional mechanisms and technical solutions to accelerate investment in facilities that
reduce the contamination of an international water body. Its technical solutions include low-
cost options that will help financially constrained communities access environmentally-
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responsible sewage treatment, while generating a mix of local and global benefits. Moreover,
it will contribute to the Global Program of Action for reducing contaminants from land-based
activities.
Finally, it will also contribute to Priority 4 on biodiversity by demonstrating synergy between
reducing trans-boundary contamination and conserving biological diversity.
2. PROJECT DESIGN
Problem Statement
Unprecedented economic growth in East Asia has resulted in rapid urbanization, especially in
coastal cities. The urban population concentration in coastal regions has caused the seas of
East Asia to largely bear the brunt of the environmental impact of this development. The
result is that land-based pollution of East Asia's seas, coasts, estuaries and rivers is a severe
problem that is well-recognized by the countries in the region, particularly China.
The rapid population growth in coastal cities such as Ningbo is making planning and
financing for utility services such as water and wastewater very challenging. Advanced
technologies for water and wastewater treatment are often applied in China without
considering the financial or operational implications, and then subsequently not utilized to
simplify operations and reduce costs.
Non-point source pollution from urban and agricultural run-off is a large and growing
problem, and a significant contributor to marine pollution. Coastal wetlands provide natural
purification for the run-off before it flows into the sea, as well as an important habitat for
migratory birds and marine life. Knowledge of the important eco-system functions provided
by wetlands is lacking throughout East Asia. There is a clear need to increase awareness and
mobilize public opinion to preserve coastal habitats and reduce land-based sources of
pollution.
Baseline Scenario
Many of the trends identified above - increased urbanization, coastal cities bearing the brunt
of this growth, wetland degradation, and the resulting pollution of the sea - are inevitable. In
the worst case scenario, ie. no World Bank project, these trends will continue, as will
Ningbo's challenges with long-term wastewater treatment. In the baseline scenario, ie. with
the Bank project but without GEF co-financing, the NWEP will assist Ningbo City and Cixi
with water supply planning and with waste water treatment investment. However lack of
local experience with innovative solutions and concerns about cost will limit the scale of
Bank investments to conventional treatment facilities. Moreover, important opportunities to
conserve wetland habitat, promote environmental education, and disseminate knowledge will
be foregone.
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The baseline project has three components
a) Component 1: Ningbo Water Supply (US$184 million):The component includes: i)
raw water supply line consisting of an intake tower in Jiakou reservoir and a 9.6 km
tunnel; ii) 500,000 m3/day Maojiaping water treatment plant; and iii) treated water
transmission pipes, including a 37 km main from Maojiaping leading to a 47 km ring
main around Ningbo City. The component is a significant part of Ningbo's overall
plan to cover the entire City, improve water quality by accessing new water sources
and upgrade water treatment, and enhance distribution system reliability and
flexibility. The ring main will be the first of its kind in China.
b) Component 2: Cixi Wastewater (US$130.0 million): The component includes: i) two
wastewater treatment plants, one located in the north of Cixi (100,000 m3/day) and
one in the east (50,000 m3/d); and ii) associated collection system mains and link
sewers (230 km of pipe and 58 pump stations).
c) Component 3: Institutional Development (US$6 million): Technical assistance will be
provided to improve water planning, utility price and service regulation, and to
enhance the Cixi Municipal Sewerage Company (CMSC) operational and business
management capacities. Technical assistance on design review and construction
management will also be provided to ensure smooth implementation of the
infrastructure works.
GEF Alternative Scenario
Under the GEF alternative scenario, GEF co-financing would support a significant
enhancement of the Cixi wastewater component of the NWEP. With GEF support, Cixi
would utilize a constructed wetland to provide tertiary treatment for the two wastewater
treatment plants. It would also establish a large conservation protection area (20-40 km2) to
protect and conserve the coastal wetland areas that Cixi officials recognize as ecologically
valuable both in terms of wildlife habitat and enhancing water quality. Finally, GEF funds
will be used to develop an innovative environmental education program on conserving
coastal wetlands.
Neither the constructed wetland nor the wetland conservation zone would be funded under
the baseline project because these components utilize new technologies and techniques with
which Cixi is not familiar. Hence, GEF support will help Cixi meet its wastewater treatment
requirements through innovative new solutions, which Cixi City would be unlikely to
undertake on its own. Following is a summary of the two additional GEF components:
a) GEF Component 1 - Constructed Wetland:
NWEP will finance two wastewater treatment plants (WWTP) in Cixi. The WWTPs will
discharge into the inland canal network, and thus require a high level of treatment to
avoid eutrophication and other water quality problems as the canals have a relatively low
assimilative capacity. Discharge into Hangzhou Bay through an outfall is not an
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economically viable option given the large tidal variation and shallow water along the
Cixi coastline. The WWTPs are designed to meet Class 1A discharge standards, which
are essentially 10 mg/l BOD and SS, with removal of nutrients to 15 mg/l total-nitrogen
and 0.5 mg/l of phosphorus. The proposed treatment process is a modified A2O process,
with tertiary treatment. Two options were considered for tertiary treatment during project
preparation: i) constructed wetland; and ii) conventional chemical coagulation/filtration.
Provided GEF support can be made available, Cixi authorities prefer the constructed
wetland option.
Constructed wetlands are artificial wastewater treatment systems, which consist of
shallow ponds or channels that have been planted with aquatic plants, and which rely on
microbial, biological, physical, and chemical processes to treat wastewater. They
typically have impervious clay or synthetic liners, and constructed structures to control
the flow direction, liquid detention time, and water level. Depending on the type of
system, they may contain an inert porous media such as rock, gravel or sand. Constructed
wetlands provide advanced treatment to effluent from conventional wastewater treatment
plants, and also provide other benefits such as wildlife habitat.
The World Bank has worked with Cixi authorities to explain the treatment,
environmental and cost benefits of constructed wetlands. Fortunately, there are large
tracts of recently reclaimed land in Cixi that are owned by the government and that
makes the sizing of approximately 50 ha constructed wetlands cost-effective and straight
forward. Constructed wetlands are a new technology in China, however, and Cixi
authorities are hesitant about adopting it. The estimated cost of the two constructed
wetlands, one for each wastewater treatment plant, is approximately US$5.0 million and
the World Bank will finance approximately half of the costs, while Cixi is responsible for
financing the remainder. The Cixi government favors the constructed wetland approach,
if GEF funding can be made available to cover part of the counterpart financing needs.
Thus GEF funding will be instrumental in demonstrating new water pollution control
technology, which also has important ecological benefits.
b) GEF Component 2: Wetland Conservation and Environmental Education
The high suspended solids concentration in Hangzhou Bay, combined with hydrological
and tidal currents, results in sediment accretion along the northern Ningbo coastline, with
accretion rates on the order of 50-100 meters per year. According to Cixi City's Plan for
Integrated Beach Development (1997-2010), approximately 130 km2 of land will be
enclosed by sea-dikes between 2000 and 2010. The reclaimed land will be carefully
planned and developed with a combination of agricultural and aquaculture areas,
industrial estates, coastal tourism, and wetland conservation zones. The area outside of
the sea dike is called the "beach-area" and the width of the beach area varies depending
on the tide but can extend hundreds of meters at low tide. Both the area inside and outside
of the sea dike has rich benthos resources and vegetation, and provide an excellent habitat
for migratory and indigenous water birds. In addition, there is considerable aquaculture in
the near shore area (i.e. just outside the sea dikes) including snails, crabs, and fish. In
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contrast to most situations, wetland areas are actually being created in Cixi due to the
sediment accretion along the coastline.
The Cixi Government understands the importance of the coastal habitat and intends to
conserve significant ecological areas and promote eco-tourism, while at the same time
promoting rapid industrial and urban development. The government is in the early stages
of regional eco-system planning and would like GEF funds and expertise to assist in this
effort. One of the most exciting concepts is a wetland conservation area (approximately
20-40 km2) and an environmental education center located at the foot of the Ningbo
(Cixi)-Shanghai Bridge. When the bridge is complete it will be the longest bridge in the
world and will convey millions of vehicles per year across Hangzhou Bay. The objective
is to construct a world-class environmental education center which will be fun and
interesting to visit, and increase public awareness of the need to protect East Asia seas by
reducing water pollution and protecting critical habitat. The creation of a wetland
conservation area in Cixi will also help reduce non-point water pollution into Hangzhou
Bay. Polluted run-off from agricultural and urban areas would drain into the wetland area
and be naturally purified by the wetland.
3.
SUSTAINABILITY (INCLUDING FINANCIAL SUSTAINABILITY)
Ningbo Municipality is strongly committed to the success of the project as the future
economic development of Ningbo City and Cixi City depend on successful project
implementation. The degree of importance attached to the NWEP project is reflected in the
active participation of high-level government officials in the Leading Group. The Project
Management Office (PMO) has been established as a permanent government agency, and
thus is able to attract qualified individuals who are offered job security and promotion
potential. NWSC and CMSC have invested significant amounts of their own funds in project
prepared and have prepared high quality feasibility studies, environmental assessments, and
resettlement action plans.
Financial sustainability of the companies is critical to the success of the project. Ningbo City
and Cixi City have demonstrated their commitment to ensuring adequate revenues for the
companies by significantly increasing tariffs in 2004. Legal covenants for increasing tariffs
in 2006 and 2008 have also been agreed upon by the Municipal Government. Both NWSC
and CMSC have well qualified technical staff that can ensure efficient operation of the
facilities.
4.
REPLICABILITY
Finding low cost methods for wastewater treatment and building public support for pollution
control and environmental conservation in China, and throughout the region, is critical. The
overwhelming majority of Chinese -- 94 percent -- live in the eastern third of the country. Of
China's 1.2 billion people, over 677 million (56 percent) reside in 13 southeast and coastal
provinces and two coastal municipalities -- Shanghai and Tianjin. Along much of China's
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18,000 kilometers of continental coastline, population densities average over 600 per square
kilometer. Much of the wastewater generated along the coast is untreated and flows into the
sea, resulting in massive and frequent red tides, adverse impacts on marine fisheries and
aquaculture, and consequent public health problems.
Examples of innovate wastewater treatment and pollution reduction methods, if properly
disseminated and replicated, will have a significant impact on reducing pollution in the
LMEs of East Asia. The GEF-supported constructed wetland will provide tertiary treatment
for the two new Cixi wastewater treatment plants. They will reduce BOD and suspended
solids, as well as nutrients such as phosphorous and nitrogen, which are the key culprits in
the red tide phenomena. Constructed wetlands can also be used as the primary treatment
process in certain situations. Constructed wetlands offer the advantages of low capital costs
(assuming land costs are not prohibitive), robust treatment performance, low operating costs
and simplicity of operations, and environmental amenities. The proposed natural wetland
conservation area will also reduce non-point source pollution. Finally, the accompanying
environmental education center, located in a strategic location at the foot of the Shanghai-
Ningbo bridge, will improve awareness of pollution control and coastal protection efforts in
China and throughout the region.
The project will fund a multi-pronged replication strategy, including: (i) a series of
workshops in Ningbo to share experiences for both the constructed wetland and natural
wetland conservation. Stakeholders from throughout China, including other coastal cities and
national environmental authorities, will be invited. The workshop material will be in both in
English and Chinese, and representatives from PEMSEA will be invited to attended and help
disseminate the experience and workshop documents; (ii) Ningbo representatives will
participate in conferences sponsored by GEF or PEMSEA, such as the biannual GEF
International Waters Congress and the PEMSEA East Asia Seas Congress; (iii) the proposed
environmental education center will serve as a comprehensive source of information as
people from throughout China and East Asia can visit the center and learn more about the
GEF-supported activities in Ningbo. In collaboration with GEF and PEMSEA, the
environmental education center can also present exhibits about other efforts throughout East
Asia to reduce marine pollution and protect marine eco-systems. The center will be a key
replication mechanism for the project.
In addition to the project-funded replication activities described above, the overall Program
will also include separately funded-activities to disseminate and promote the adoption of
various technologies and pilot projects financed under the Program.
5.
STAKEHOLDER INVOLVEMENT / INTENDED BENEFICIARIES
There are multiple beneficiaries for the GEF activities including: i) fisherman and aquatic
farmers along the coast line, as well as the people who consume the renowned seafood from
Cixi; ii) environmentalists who are interested in preserving wetlands and migratory bird
habitats; iii) citizens in Cixi who wish to enjoy a clean and healthy environment; iv)
industries in Cixi who want to ensure their operations have minimal impact on the
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environment in the most cost-effective manner; and v) the multiple government agencies
responsible for environmental protection and land management in Cixi and Ningbo
municipality. Cixi government will attempt to identify suitable non-governmental partners,
such as international conservation organizations or universities to assist in the development
of the environmental education center.
During the preparation of the proposed project, there will be consultations with all of these
key stakeholder groups, and an effort made to reach consensus on appropriate project design.
The results of the consultations will be recorded and analyzed, and a stakeholder plan will be
produced as a specific block-B activity.
6. MONITORING AND EVALUATION
The Cixi wastewater component of NWEP, including GEF-funded activities, is expected to
reduce COD discharges flowing into the East China Sea by an estimated 15,000 tons per
year. The annual pollutant reduction from the GEF-funded constructed wetland is estimated
at 2,000 tons of COD, 200 tons of total phosphorus, and 900 tons of ammonia nitrogen
(NH3-N). The reduction of pollution due to the natural wetland is difficult to estimate due to
the diffuse nature of non-point sources of pollution, but an estimate will be made during
preparation. The NWEP includes a comprehensive evaluation of wastewater treatment plant
performance which will also be used for GEF evaluation purposes. The M&E program will
monitor influent and effluent concentrations of key parameters (including BOD, COD, SS,
nitrogen, and phosphorous) to demonstrate compliance with Chinese environmental
standards, as well as monitor total amounts of pollution prevented from entering the East
China Sea for GEF purposes. The M&E program will place a special emphasis on evaluating
the performance of the constructed wetlands for scientific and operational purposes.
In addition to reducing pollution from the Cixi wastewater treatment plants, an important
objective of the project is to disseminate the experience of the constructed wetland and help
educate the public about the importance of protecting the seas and coastal wetlands. M&E
indicators for this objective, for example the number of visitors to the education center, the
number of workshops, and the number of presentation by Ningbo representatives, will be
developed during preparation.
D - FINANCING
Total Estimated Project Cost (Cixi Component Only): US$141 million
1. Counterpart Funding: Cixi City-$76 million
2. World Bank: US$60 million
3. Proposed GEF co-financing: US$5 million
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E - INSTITUTIONAL COORDINATION AND SUPPORT
1. CORE COMMITMENTS AND LINKAGES
The project is a proposed component of the World Bank/Global Environment Facility
Pollution Reduction Investment Program for Large Marine Ecosystems of East Asia. Its
design reflects the lessons learned from the World Bank's large portfolio of water pollution
reduction projects, including the WB/GEF Danube/Black Sea Program.
The project will address two key themes of the World Bank's China Country Assistance
Strategy: i) accelerating the transition to a market economy through improving public sector
management and delivery of services; and ii) facilitating an environmentally sustainable
development process through better management of water resources. Two strategic issues for
the Bank's urban development program in China will be highlighted in the project design:
Ø A focus on urban water planning and resource management where problems are
reaching a crisis level in many cities, including Ningbo. The project will be the first
major Bank-financed urban water supply operation since the mid-1990s.
Ø A concentration on regional integration by providing water and wastewater
infrastructure, and management systems that transcend administrative boundaries.
The Ningbo Municipal Government, and the lower-level Cixi City government, are
committing to preserving their ecological resources and reducing pollution into the East Asia
Sea. Ningbo, in contrast to most Chinese cities, has taken the initiative to address water
issues through a regional approach with establishment of a multi-sector Water and
Environment Leading Group chaired by the Executive Municipal Vice Mayor and headed by
the Municipal Planning Commission. The Leading Group has a dynamic Secretariat, and is
facilitating infrastructure investments and management systems which cut across
administrative boundaries to resolve Ningbo's serious water and wastewater problems.
Cixi City government is also demonstrating its core commitment to the project objectives by
agreeing to preserve space for both the natural and constructed wetlands. Given the high
population density and rapid economic growth in China, land is extremely valuable, and the
decision to use the land for environmental purposes rather than industrial and urban
development carries high opportunity costs for the Cixi government. The Cixi government
realizes, however, that its most important natural feature, the attribute which sets it apart
from other places, is its highly productive shoreline.
2. CONSULTATION, COORDINATION AND COLLABORATION BETWEEN AND AMONG
IMPLEMENTING AGENCIES, EXECUTING AGENCIES AND THE GEF SECRETARIAT.
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The project is part of the World Bank/GEF Pollution Reduction Investment Program for
Large Marine Ecosystems of East Asia, jointly developed in close collaboration with the
GEF/UNDP/IMO PEMSEA initiatve. PEMSEA's main achievement has been the
development of the Sustainable Development Strategy for the Seas of Asia (SDS-SEA),
which was endorsed by the ministers of twelve East Asian countries in December 2003, and
which lays out a road-map for improving and sustaining the seas of East Asia. It is on the
basis of this strategy that the WB/GEF Investment Program was created. The Program,
therefore, seeks to collaborate with the implementation action plans of PEMSEA, as well as
other initiatives in the region such as the UNDP/GEF Yellow Sea and South China
Sea.initiatives.
During project preparation a survey of on-going related activities among other implementing
agencies, executing agencies, and the GEF Secretariat will be undertaken and a plan for
appropriate collaboration will be conceived.
PEMSEA's Secretariat has been briefed on Ningbo and will help to disseminate information
about this project. PEMSEA's regional project - Implementation of the Sustainable
Development Strategy for the Seas of East Asia - provides an extremely useful coordination
function that the Ningbo project will seek to take advantage of in term of spreading the
lessons learnt and the replicability potential of the wetland technology for pollution reduction
throughout the LMEs of East Asia.
3. IMPLEMENTATION/EXECUTION ARRANGEMENTS
The implementing agency for the project will be the World Bank, through the East Asia
Urban Sector Unit (EASUR), which is responsible for the overall Global Environment
Facility Pollution Reduction Investment Program for Large Marine Ecosystems of East Asia.
The World Bank task team responsible for the Ningbo Water and Environment Project will
also supervise the GEF project.
The project will be executed by the Ningbo Municipal Government, under the policy
direction of the Water and Environment Leading Group. The NWEP Project Management
Office will administer the GEF project funds in collaboration with the Ningbo Municipal
Finance Bureau.
The actual GEF-related project activities will be undertaken at the Cixi government level.
The constructed wetland activities will be managed by CMSC, which is a 100% government-
owned company under the authority of the Cixi government. CMSC is the owner and
operator of the wastewater treatment plants financed under the project.
For the GEF-funded natural wetland component, the activities will be under the authority of
the Vice Mayor of Cixi City, who will establish a special working group consisting of
relevant government agencies including the Planning Commission, Environmental Protection
Bureau, Land Resource Management Bureau, Agriculture Bureau (which includes the Marine
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Bureau), Construction Bureau, etc. The exact implementation responsibilities will be defined
during project preparation.
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PART II - PROJECT DEVELOPMENT PREPARATION
A - DESCRIPTION OF PROPOSED PDF ACTIVITIES
The activities during the PDF-B grant period are described below:
1. Activity 1: Review Design of Constructed Wetland: An international expert would be
contracted to review the feasibility study of the constructed wetlands for the Cixi wastewater
treatment plants. Domestic consultants have limited experience with constructed wetlands,
and the involvement of an international expert to review the design is essential to ensure the
wetland functions as intended. The expert is expected to make 2-3 trips to Ningbo, each trip
approximately 2 weeks, as well as provide design support from his home office. The expert
will advise on how to prepare educational programs related to wetlands and wastewater
treatment education.
2. Activity 2: Prepare Terms of Reference: A consultant(s) would be contracted to prepare
TORs for the following:
a) Regional Ecological Planning Study: The study will help integrate ecological issues into
the overall Cixi Master Plan and develop specific plans for three areas: i) Cixi wetland
conservation area; ii) coastal mudflats; and iii) "ecological corridors" within recently
reclaimed land.
b) Conceptual Design and Start-Up Support for an Environmental Education Center: A
consultant would be contracted to prepare a TOR for the conceptual design of an
Environmental Education Center in the wetland conservation area, as well as provide start-up
support for the operations of the Center. The conceptual design includes the building
architecture, educational exhibits for the Center and within the wetland conservation area,
educational programs, etc. The conceptual design will also look at organizational
arrangements, financing, and marketing the Center's attractions. Cixi will use its own funds
for the structural design and construction of the Center. GEF funding will support
consultancy services during the start-up operations for the Center.
3. Activity 3: Prepare M&E and Stakeholder Plan: In addition to the overall NWEP
monitoring and evaluation program, a specific monitoring and evaluation program for the
GEF components' objectives, outputs, and inputs will be developed. The M&E program will
assess the actual pollution reduction achieved through the project, and the results will be used
for improving operational performance, as well as providing scientific information on the
constructed wetland which will be disseminated for the use of other interested parties. It will
also assess the impact of the dissemination and education objective of the project: number
visitors to the education center, workshops, and conference presentations.
Stakeholder participation will be important during both the preparation and implementation
stages. A consultant will therefore prepare a "stakeholder assessment and consultation plan"
Ningbo PDF-B and GEF Pipeline Entry
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14
at the start of the assignment to support project preparation, which will be followed by the
preparation of a comprehensive consultation plan to guide project implementation.
4. Activity 4: Assess Replication Potential: A general assessment of the potential for engineered
wetlands in China, particularly along the coastal areas will be conducted. The scope of
coastal wetland conservation, and potential impacts on reducing land based sources of marine
pollution and protecting important conservation areas will also be considered. These
assessments will assist in the design of specific replication and dissemination activities under
the project, including workshops, conference presentations, and technical publications.
5. Activity 5: Prepare GEF Project Documents: A consultant experienced in GEF project
preparation would be contracted to assist Cixi City in the preparation of the necessary
documents for GEF and World Bank appraisal and approval.
6. Activity 6: Conduct Workshops and Study Visit: There would be a series of stakeholder
workshops on project design. In addition, study visits within China and other countries could
be organized to provide examples of constructed wetlands and wetland protection areas.
B - PDF BLOCK B OUTPUTS
1. Design Review and Advisory Report which ensure proper functioning of the constructed
wetlands.
2. Terms of Reference for i) Regional Ecological Planning; ii) Environmental Education Center,
suitable for soliciting proposals.
3. Monitoring and Evaluation Plan; Stakeholder Consultation Plan.
4. Assessment of Replication Potential and Strategy Under the Project
5. GEF Project Documents for Cixi Wastewater and Wetland Management, suitable for World
Bank and GEF appraisal.
6. Workshop and Study Visit Reports.
C - INSTITUTIONAL ARRANGEMENTS
The Ningbo-Cixi PDF B activities will be jointly executed by the Ningbo Municipal Government
(US$225,000) and the World Bank (US$125,000). The World Bank task leader for the NWEP
will be responsible for contracting international consultants to assist Ningbo/Cixi in the
development of the project proposal. The Ningbo Municipal Government will designate the
PMO for the NWEP and the Municipal Finance Bureau as the responsible parties for the PDF-B
grant. The PMO will be responsible for contracting domestic consultants to assist in project
preparation and for obtaining any necessary domestic clearances. The PMO will support the Cixi
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15
Steering Committee headed by a Vice Mayor, related Cixi government agencies, as well as the
Cixi Municipal Sewerage Company.
D - TIMELINE & BUDGET
See Annex 1. The PDF-funded activities are expected to begin immediately after GEF approval
of the proposal in May 2005 and will be completed by May 2006, with the aim of submitting the
Ningbo-Cixi project proposal to the GEF Council in parallel with the Program for "Pollution
Reduction Investment Program for Large Marine Ecosystems of East Asia" in late 2005/early
2006. The budget estimate is presented below:
Cost Estimates for Ningbo PDF-B Proposal
WB Executed Ningbo Executed
1. Constructed Wetland Review
$70,125
$52,925
$17,200
2. Preparation of Terms of Reference
$135,050
$0
$135,050
3. Preparation of Project Documents
$93,375
$73,175
$20,200
4. Workshops and Incremental Costs
$50,000
$50,000
Total $348,550
$126,100
$222,450
Ningbo PDF-B and GEF Pipeline Entry
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16
PART III RESPONSE TO REVIEWS
A - CONVENTION SECRETARIAT
B - OTHER
Ningbo PDF-B and GEF Pipeline Entry
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17
ANNEX 1 - TIMELINE AND BUDGET: NINGBO COMPONENT ACTIVITIES
PDF B BUDGET Part 1
Activities
Deliverables
Costs (US $)
Organization Responsible for Deliverable
Deadlines
GEF PDF B
Co-Financing
1. Design Review
Design Report
$70,000
$100,000
World Bank
July 2005
of Constructed
(SMEDI Design)
Wetland
2. Prepare TOR
Terms of Reference
$70,000
$25,000
Ningbo PMO
October 2005
for Cixi Eco-
(Cixi
System Planning
Government
Support)
3. Prepare TOR
Terms of Reference
$65,000
$25,000
Ningbo PMO
October 2005
for Environmental
(Cixi
Education Center
Government
Support)
4.Workshops
Workshop and Study Visit
$50,000
$10,000
Ningbo PMO
July-December
Study Visit
Reports
(Cixi and Ningbo
2005
Government
Support)
5. Prepare Project
GEF Project Document for
$95,000
$25,000
World Bank and Ningbo PMO
March 2006
Documents
Approval
(Cixi and Ningbo
Government
Support)
TOTAL
350,000
$185,000
WB155260
Ningbo
May 2005
18
PDF-B and GEF Pipeline Entry
M:\PROJECTDOCS\INTERNATIONAL WATERS\CHINA - NINGBO WATER AND ENVIRONMENT\05-05-05 NINGO GEF PDF B FINAL.DOC
05/19/2005 10:58:00 AM
Ningbo
May 2005
19
PDF-B and GEF Pipeline Entry